WASHINGTON EVEN AS ARMORED UNITS WERE BLOWING HOLES IN THE RUSSIAN WHITE HOUSE THE CLINTON ADMINISTRATION CONTINUED TO EXPRESS UNWAVERING SUPPORT FOR RUSSIAN PRESIDENT BORIS YELTSIN WHILE BLAMING HIS OPPONENTS FOR PROVOKING THE BLOODY SHOWDOWN SPEAKING IN SAN FRANCISCO YESTERDAY PRESIDENT CLINTON DEFENDED MR YELTSIN'S ACTIONS SAYING WHAT CHOICE DID HE HAVE IF SUCH A THING HAPPENED IN THE UNITED STATES YOU'D EXPECT ME TO TAKE TOUGH ACTION BUT IS THE US CLINGING TO MR YELTSIN TOO HARD AS A CANDIDATE MR CLINTON ACCUSED THE BUSH ADMINISTRATION OF DOING JUST THAT WITH MIKHAIL GORBACHEV THIS TIME AROUND MR CLINTON'S AIDES INSIST AND MOST ANALYSTS AGREE THE US REALLY HAD NO CHOICE MR YELTSIN THEY SAY IS THE ONLY DEMOCRATICALLY ELECTED LEADER OF RUSSIA AND IF THERE IS A REASONABLE ALTERNATE WAITING IN THE WINGS HE OR SHE HAS YET TO EMERGE BUT IF THE US DOESN'T WANT TO SEE A REPEAT OF THIS CRISIS AND THE SAME YELTSINORNOTHING CHOICE IT MUST ALSO WORK TO BROADEN ITS LINKS TO OTHER REFORMERS WHILE PRESSING MR YELTSIN TO DEEPEN RUSSIA'S DEMOCRATIC PROCESS AND IMPROVE HIS OWN POLITICAL SKILLS FROM HERE ON OUT WITH PARLIAMENTARY ELECTIONS SCHEDULED FOR DECEMBER AND PRESIDENTIAL ELECTIONS PLANNED FOR JUNE THE US MAY SOON FIND ITSELF BLESSED WITH AN ABUNDANCE OF NEW RUSSIAN DEMOCRATS ALTHOUGH THEY MAY PROVE LESS AMENABLE TO US DIRECTION AND IDEAS OF REFORM THAN BORIS YELTSIN BETWEEN YELTSIN AND RUSSIAN VICE PRESIDENT ALEXANDER RUTSKOI THERE WAS REALLY NO CHOICE SAYS FORMER CENTRAL INTELLIGENCE AGENCY DIRECTOR ROBERT GATES BUT ONCE THERE IS A NEWLY ELECTED PARLIAMENT YELTSIN WILL NEED A NEW APPROACH HE CAN'T JUST KEEP THROWING THEM OUT HE SAYS US OFFICIALS SAY THEY HAVE NO DOUBT ABOUT MR YELTSIN'S COMMITMENT TO DEMOCRACY AND JUST IN CASE MR YELTSIN MIGHT BE TEMPTED TO BACKSLIDE PRESIDENT CLINTON PUBLICLY REMINDED HIM YESTERDAY OF THAT PERSONAL COMMITMENT TO LET THE RUSSIAN PEOPLE DECIDE THEIR OWN FUTURE OFFICIALS ALSO URGED MR YELTSIN TO MOVE QUICKLY TO LIFT A STATE OF EMERGENCY AND BEGIN TO HEAL THE NATION'S WOUNDS BUT OFFICIALS ADMIT THAT THEY ARE LESS CERTAIN OF MR YELTSIN'S POLITICAL SKILLS HE HASN'T USED HIS TIME IN OFFICE TO BUILD EITHER A POLITICAL PARTY TO PROMOTE REFORM THROUGH THE COUNTRY OR EVEN A WORKING POLITICAL COALITION IN MOSCOW THAT FAILURE COULD PARTICULARLY HURT HIM IN COMING PARLIAMENTARY ELECTIONS WHEN VOTERS WEARY OF ECONOMIC SACRIFICES COULD CHOOSE REPRESENTATIVES WHO ARE AS OPPOSED TO ECONOMIC REFORM AS THE CURRENT PARLIAMENT BUT WHO WOULD HAVE FAR MORE DEMOCRATIC LEGITIMACY SOME ANALYSTS BELIEVE THE US MUST ALSO BEAR SOME OF THE BLAME FOR THE CRISIS BY PUSHING MR YELTSIN TOO HARD TO MAKE HIGHLY UNPOPULAR ECONOMIC REFORMS EVEN AT THE RISK OF A MAJOR POLITICAL EXPLOSION THE ADMINISTRATION WAS TELLING YELTSIN AND HIS PEOPLE TO MOVE MORE QUICKLY WITH REFORMS EVEN IF IT WEAKENED HIM POLITICALLY SAYS DIMITRI SIMES A RUSSIAN ANALYST AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE IN WASHINGTON AND WHEN THE PARLIAMENT GOT IN THE WAY THEY SAID TO HELL WITH THEM TOO US OFFICIALS DENY BOTH CHARGES THEY SAY THEY CUT MR YELTSIN CONSIDERABLE POLITICAL SLACK BY PRESSING THE INTERNATIONAL FINANCIAL INSTITUTIONS TO LOOSEN THEIR LENDING CRITERIA BUT THEY ALSO SAY THAT CERTAIN FUNDAMENTAL ECONOMIC REALITIES ALSO MUST BE RESPECTED AND THAT WITHOUT SERIOUS ECONOMIC REFORM AND THE CONSTANT THREAT OF HYPERINFLATION BOTH MR YELTSIN AND RUSSIAN DEMOCRACY ARE UNLIKELY TO LAST FOR LONG AS FOR GIVING A GREEN LIGHT TO MR YELTSIN FOR EITHER SUSPENDING THE PARLIAMENT OR YESTERDAY'S ATTACK ON THE RUSSIAN WHITE HOUSE US OFFICIALS INSIST THEY DID NOT PRESIDENT CLINTON WAS VERY CLEAR AT THE START OF THIS CRISIS HE TOLD YELTSIN THAT HE WANTED THE CRISIS SOLVED POLITICALLY AND HE WANTED TO MAKE SURE YELTSIN WOULD STICK TO HIS DEMOCRATIC TIMETABLE BUT BECAUSE OF THE WAY THE OPPOSITION REACTED A PEACEFUL SOLUTION WASN'T POSSIBLE SAID ONE SENIOR US OFFICIAL LATE YESTERDAY OFFICIALS SAID THEY WOULD NOW HAVE TO SETTLE FOR JUST ONE OF THOSE CONDITIONS FREE AND DEMOCRATIC ELECTIONS BUT THAT THEIR INSISTENCE WILL BE UNWAVERING STEPHEN SESTANOVICH A RUSSIA ANALYST AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IS OPTIMISTIC THAT THIS CRISIS AND THE NEW ELECTIONS WILL NORMALIZE RUSSIAN POLITICS SWIFTLY ONCE A MORE LEGITIMATE OPPOSITION ARISES THE US WON'T HAVE TO ALWAYS WORRY ABOUT WHO COMES AFTER YELTSIN HE SAYS DOES THE US WORRY ABOUT WHO COMES AFTER JOHN MAJOR 9310050013 931005 BUSINESS WORLD I YIELD THE RIGHT OF WAY BY TIM W FERGUSON THE MOST RESPONSE I'VE GOTTEN TO A COLUMN FOLLOWED MY RAINING ON CHRYSLER CORP'S PARADE LAST NOVEMBER THE AUTO COMPANY LET ME TEST ONE OF ITS NEW LH MODELS AND I CAME AWAY THINKING MY HONDA ACCORD WAS STILL A BETTER DEAL AMERICAN CAR PURCHASERS HAVE SHOWN SINCE THAT THEY DIDN'T EXACTLY AGREE IN THE MODEL YEAR JUST ENDED HONDA WAS DOWN ITS TIRED OLD ACCORD STILL HANDILY OUTSOLD THE THREE MARQUES OF LHS BUT THEY WERE AIMED AT A SOMEWHAT HIGHER AND NARROWER NICHE CHRYSLER APPARENTLY MOVED AS MANY OF THE MODELS AS IT COULD MAKE IN THE ROLLOUT YEAR THIS IS NOT SURPRISING GIVEN THE RUSH I FELT FROM READERS AFTER CHIDING THE US AUTO MAKERS MY CHEEKY DISPOSITION STEMMED FROM DETROIT'S INSISTENCE THAT ITS COUNTRYMEN NOT HAVE A SHOT AT THE FULL VOLUME OF CARS THE JAPANBASED MANUFACTURERS COULD OFFER BUT LET IT BE SAID HERE AS IT HAS BEEN EVERYWHERE ELSE THE RECENT ACHIEVEMENTS OF AMERICAN AUTOMOTIVE ENGINEERS ESPECIALLY AT CHRYSLER ARE REMARKABLE THE SATISFACTION SURVEYS CONFIRM THAT IT TURNED OUT THAT MANY ACCORDCLASS BUYERS WERE WILLING TO MOVE UP TO THE LH FAMILY SEDAN LIST PRICES NOTWITHSTANDING THE HONDA COULD BE HAD IN THE CALIFORNIA MARKET FOR A FEW THOUSAND DOLLARS LESS THAN THE LHS EVEN WITH THE YEN APPRECIATION BECAUSE MY HYPOTHESIS FOR SOME TIME HAS BEEN THAT MAINSTREAM AMERICA HAS REACHED ITS LIMIT ON CARRELATED EXPENDITURES I THOUGHT THIS WOULD BE A MORE SIGNIFICANT BARRIER FOR THE LH THAN IT HAS BEEN PRICE DOES STILL MATTER THE SUCCESS OF NISSAN'S ECONOMICAL ALTIMA IN THE SAME BROAD MARKET SEGMENT SHOWS THAT BUT THE COMBINATION OF LOW INTEREST AND LEASE RATES LOW GASOLINE PRICES AND CONTINUED INCOME GROWTH AMONG THE TARGET CUSTOMERS HAS BEEN ENOUGH TO MAKE THE LHS SUFFICIENTLY AFFORDABLE I NEVER DISPUTED THAT THEY WERE GOOD CARS READERS MAY RECALL THAT CHRYSLER PRESIDENT ROBERT LUTZ WAS AMONG THOSE PERTURBED BY MY COMMENTS HE HARRUMPHED THAT I WAS IGNORANT GENERALLY AND SPECIFICALLY IN SUGGESTING THAT THE DODGE INTREPID THAT I DROVE WAS COMPETING FOR THE ACCORD CROWD AS WELL AS FOR MORE LUXURIOUS TASTES THAT HAS ALWAYS BEEN A COMMON IMPRESSION AND EVEN IN HIGHLAND PARK I DOUBT THAT IT WOULD BE SO HOTLY DENIED NOW LAST FALL THE PRESIDENT OF GOLLING CHRYSLER PLYMOUTH OF WATERFORD MICH PAINSTAKINGLY DETAILED FOR ME JUST WHY THE LH WAS SUPERIOR TO THE HONDA MODEL ON PAPER AS WELL AS ON THE ROAD MR LUTZ CONCLUDED HIS LETTER TO THE EDITOR BY SIGHING THAT A HONDA LOYALIST SUCH AS I PROBABLY WOULD LEAP FOR THE RESTYLED ACCORD WHEN IT ARRIVED EVEN THOUGH IT WOULD BE ALL THE THINGS FOR WHICH I HAD DINGED THE INTREPID MORE EXPENSIVE LARGER HEAVIER AND WITH A BIGGER AND PRESUMABLY MORE GASHUNGRY ENGINE WELL I DID RECENTLY TEST A '94 ACCORD AND SURE ENOUGH IT BROUGHT BACK MEMORIES OF THE INTREPID THE TOPOFTHELINE EX MODEL WAS ALL HONDA HAD AVAILABLE AND IT WON'T SAVE YOU ON THE STICKER AGAINST THE DODGE LH THE NEW ACCORD IS WIDER AND HAS THE ROUNDED INTERIOR DESIGN THAT CHRYSLER AND OTHERS ADOPTED EARLIER IT'S A SMIDGEON WEIGHTIER WITH THE CURRENTGENERATION SAFETY EQUIPMENT SCORE POINTS FOR MR LUTZ BUT THE ENGINE BIGGER THOUGH STILL SHORT OF THE LH STANDARD GETS IMPROVED MILEAGE AND THUS WIDENS AN EDGE OVER CHRYSLER THE ACCORD'S LENGTH IS EVEN MORE COMPACT THAN IN THE PAST WHICH MEANS IT'S MORE THAN 1 1/2 FEET SHORTER THAN THE LH PARKING EASE VS BACKSEAT LEGROOM REMAINS A CRITICAL TRADEOFF BETWEEN THE TWO ENOUGH OF THE CONSUMER REPORT THE CRUX OF IT IS THAT HONDA HAS NEARLY CAUGHT UP WITH CHRYSLER IN MAJOR FEATURES AND PRICE A DECISION TO LEAP FROM ONE TO THE OTHER COMES DOWN TO HOW MUCH CAR YOU WANT THAT A SUFFICIENT NUMBER ARE READY TO JUMP VALIDATES CHRYSLER'S MARKETING STRATEGY AND VANQUISHES MY DOUBTS I ASSUME MR LUTZ & CO ALSO KNOW WHAT THEY ARE DOING IN SIGNING ON LAST WEEK TO PAY AND PENSION INCREASES CONTINUED FIRSTDOLLAR MEDICAL COVERAGE MORE HOLIDAYS AND OUTSOURCING LIMITATIONS THAT SATISFIED THE UNITED AUTO WORKERS AS LONG AS THE COMPANY WHITTLES AWAY AT WHAT AT LAST COUNT WAS A 36 BILLION UNFUNDED BUT FEDERALLY GUARANTEED LIABILITY IN ITS RETIREMENT PROGRAM ALL OF US ON THE OUTSIDE WILL HAVE NO CAUSE TO CAVIL OH AND ONE OTHER THING THE BIG THREE'S BACK CHANITE HOUSE ITS LATEST FRUIT SEEMS TO BE AN R&D CARTEL WITH WASHINGTON'S BLESSING TO MEET POLITICALLY DRIVEN AUTO STANDARDS OF THE FUTURE MAYBE CHRYSLER CHAIRMAN ROBERT EATON IS RIGHT TO BE ENTHUSIASTIC ABOUT A COOPERATIVE SPIRIT AND AN ABSENCE OF MANDATES IN THIS BUT THE COZINESS THAT DETROIT HAS ENJOYED WITH PRESIDENT CLINTON ESPECIALLY HAS TO GIVE CONSUMERS MAYBE SOME OF THE SAME ONES THAT ARE CLAMORING FOR LHS PAUSE ABOUT THEIR FUTURE CHOICES WHAT'S GOOD FOR GENERAL MOTORS WASN'T THAT A HOARY REPUBLICAN NOTION EVEN FLAGWAVERS CAN APPRECIATE THAT THE HONDAS OF THIS WORLD GOT THE USBASED CAR MAKERS IN GEAR THAT HAPPENED DESPITE THE BARRIERS TO ENTRY THAT DETROIT STILL WANTS TO RAISE JAMES FLANIGAN A WISE OBSERVER OF INDUSTRY FOR THE LOS ANGELES TIMES THINKS CHRYSLER HAS POSITIONED ITSELF BETTER THAN ANYONE ELSE IN THE BUSINESS ANYWHERE IN THE WORLD TO RESPOND TO CHANGING BUYER TASTES IF THAT STARTS A WEANING FROM WASHINGTON I WILL EAT CROW AND LIKE IT 9310050012 931005 BROOKE GROUP SETS EXCHANGE ACCORD FOR 16 1/8 NOTES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BROOKE GROUP LTD REACHED AN AGREEMENT TO EXCHANGE ITS 16 1/8 NOTES FOR A CONTROLLING STAKE IN NEW VALLEY CORP THE PARENT OF WESTERN UNION FINANCIAL SERVICES INC NEW VALLEY HAS BEEN OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE MAY 1992 THE EXCHANGE OFFER EFFECTIVELY WILL GIVE AN INVESTMENT GROUP HEADED BY LEON BLACK THROUGH HIS APOLLO INVESTMENT FUND CONTROL OF NEW VALLEY APOLLO OWNS ABOUT 484 MILLION OF THE 89 MILLION FACE AMOUNT OF THE 16 1/8 NOTES OUTSTANDING AND IT HAS AGREED TO MAKE AN EQUITY INVESTMENT SUFFICIENT TO GAIN MAJORITY CONTROL OF NEW VALLEY THE OFFER HAS SOME OTHER BENEFITS AS WELL FOR FINANCIALLY TROUBLED BROOKE GROUP WHICH IS CONTROLLED BY INVESTOR BENNETT S LEBOW APOLLO HAS AGREED TO PAY BROOKE GROUP 22 MILLION IN CASH INCLUDING ONETHIRD IMMEDIATELY ON A SECURED BASIS PENDING CLOSE OF THE EXCHANGE BROOKE GROUP WHICH SOME INVESTORS HAVE ACCUSED OF BEING INSOLVENT PLANS TO RECORD THE EXCHANGE AS A 111 MILLION GAIN IN THE 1994 FIRST QUARTER ELIMINATING THE 89 MILLION IN NOTES AND RECORDING THE 22 MILLION IN CASH FROM APOLLO BROOKE GROUP HAD WRITTEN DOWN ITS NEW VALLEY INVESTMENT TO ZERO ON ITS BALANCE SHEET IT HOLDS A 42 INTEREST IN NEW VALLEY COMMON STOCK AND 43 OF A CLASS A PREFERRED ISSUE WHICH THE NOTEHOLDERS WILL RECEIVE IN THE EXCHANGE OFFER THE HIGHINTEREST NOTES HAVE BEEN TRADING ABOUT 50 CENTS ON THE DOLLAR AND BROOKE GROUP MISSED AN INTEREST PAYMENT ON THE SECURITIES AS WELL AS SOME JUNIOR NOTES LAST WEEK A COMPANY OFFICIAL SAID THE INTERESTPAYMENT DELAY WAS DUE TO NEGOTIATIONS OVER THE LATEST EXCHANGE OFFER ADDING THE COMPANY PLANS TO MAKE THE PAYMENT SOON BROOKE GROUP BADLY NEEDS TO BOLSTER ITS FINANCIAL PROFILE A RECENT FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID THE COMPANY HAD A NEGATIVE NET WORTH OF MORE THAN 500 MILLION MR LEBOW PRESUMABLY HOPES THE LATEST EXCHANGE OFFER WILL HELP RESOLVE THE LINGERING NEW VALLEY CHAPTER 11 PROCEEDING NEW VALLEY WOULD HAVE TO REACH A REORGANIZATION AS PART OF THE OFFER NEW VALLEY'S EXCLUSIVE RIGHT TO FILE A PLAN EXPIRES IN LATE NOVEMBER MR BLACK HAS A ROLE IN THE NEGOTIATIONS THROUGH APOLLO'S INVESTMENTS BUT THERE ARE OTHER CONNECTIONS AS WELL MR BLACK'S BROTHERINLAW RICHARD RESSLER IS MR LEBOW'S TOP LIEUTENANT AND THE LAWYER HANDLING NEW VALLEY CHAPTER 11 CASE IS MR BLACK'S SISTERINLAW MR BLACK IS OUT OF THE COUNTRY AND UNAVAILABLE FOR COMMENT MR LEBOW ASKED FOR COMMENT LAST NIGHT ON THE FAMILY ROLES SAID I CONTROL BROOKE LEON CONTROLS APOLLO I'M NOT IN A RELATIONSHIP WITH HIM AT ALL BROOKE GROUP'S SOLVENCY IS CURRENTLY AN ISSUE IN A LAWSUIT IN DELAWARE CHANCERY COURT MR LEBOW HAS SOUGHT TO COVER SOME OBLIGATIONS TO CERTAIN RIGHTS HOLDERS BY DISTRIBUTING SHARES IN ITS SKYBOX INTERNATIONAL INC SPORTS AND ENTERTAINMENT TRADING CARD UNIT BUT SOME RIGHTS HOLDERS ASSERT THE DISTRIBUTION IS ILLEGAL BECAUSE THEY ALLEGE BROOKE GROUP IS INSOLVENT THE DISTRIBUTION PLAN HASN'T YET BEEN CLEARED BY THE SECURITIES AND EXCHANGE COMMISSION BROOKE GROUP ALSO OWNS TOBACCO COMPANY LIGGETT GROUP AND A RUSSIAN REALESTATE OPERATION YESTERDAY THE COMPANY SAID IT LEASED AN OFFICE BUILDING IN MOSCOW TO A UNIT OF CITICORP FOR FIVE YEARS 9310050011 931005 FORMER KEATING AIDE IS SENTENCED TO PRISON FOR ROLE IN S&L CASE LOS ANGELES THE FORMER CHIEF FINANCIAL OFFICER OF CHARLES KEATING JR'S AMERICAN CONTINENTAL CORP WAS SENTENCED BY A FEDERAL JUDGE TO TWO YEARS IN PRISON AND ORDERED TO REPAY 148000 FOR HIS ROLE IN THE LINCOLN SAVINGS & LOAN ASSOCIATION SCANDAL ANDREW F LIGGET WHO ALSO WAS A DIRECTOR OF LINCOLN LAST YEAR PLEADED GUILTY TO FELONY CHARGES OF MISAPPLICATION OF FUNDS AND AGREED TO COOPERATE WITH PROSECUTORS HE ADMITTED MAKING PREMATURE PAYMENTS OF ABOUT 28 MILLION TO AMERICAN CONTINENTAL UNDER A TAXSHARING AGREEMENT WHICH PROSECUTORS BELIEVE WAS USED AS A VEHICLE FOR FUNDS TO BE DIVERTED FROM LINCOLN TO ITS PARENT AMERICAN CONTINENTAL THE REPAYMENT IS FOR MONEY WHICH WOULD HAVE BEEN EARNED AS INTEREST BY LINCOLN ACCORDING TO ONE OF THE PROSECUTORS DAVID SKLANSKY MR LIGGET IS THE FIRST OF EIGHT FORMER ASSOCIATES OF MR KEATING TO BE SENTENCED HIS ATTORNEY DENNIS WINSTON COULDN'T BE REACHED FOR COMMENT MR KEATING HIMSELF WAS SENTENCED TO 125 YEARS IN PRISON FOR BANK FRAUD HIS SON CHARLES H KEATING III WAS SENTENCED TO EIGHT YEARS AND ONE MONTH MR LIGGET'S ATTORNEY COULDN'T BE REACHED FOR COMMENT 9310050010 931005 CORPORATE FOCUS KEYCORP AND SOCIETY HOPE DIFFERENCES BECOME ASSET TWO MAJOR BANKS IN 39 BILLION MERGER SEEK MORE THAN REVENUE GROWTH BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL KEYCORP AND SOCIETY CORP WHICH ANNOUNCED THEIR 39 BILLION MERGER YESTERDAY ARE HOPING THEIR SHARPLY DIFFERENT BANKING STYLES WILL BE AN ASSET RATHER THAN A LIABILITY THE COMBINATION MARRIES KEY'S FRANCHISE OF MORE THAN 1000 BANK BRANCHES WITH SOCIETY'S DIVERSE PRODUCT BASE SUCH AS MUTUAL FUNDS AND TRUST SERVICES TOGETHER THEY CREATE A HUGE 58 BILLIONASSET BANK SPANNING THE UPPER HALF OF THE US BOTH BANKS HAVE GOOD REPUTATIONS BASED MOSTLY ON SUPERIOR RETURNS ON EQUITY BUT THEY HAVE EARNED THOSE REPUTATIONS PURSUING SHARPLY DIFFERENT STRATEGIES KEY IS KNOWN FOR ITS CURIOUS FROSTBELT STRATEGY THAT AIMS AT BUILDING A NETWORK OF BANKS IN SMALL TOWNS ACROSS THE NORTHERN TIER OF THE COUNTRY SOCIETY A BIG CLEVELAND BANK HAS BEEN LESS WILLING TO SPREAD ITSELF ACROSS THE COUNTRY BUT HAS EXCELLED AT DIVERSIFYING BEYOND TRADITIONAL BANK SERVICES TO OFFER CUSTOMERS A WIDE ARRAY OF FINANCIAL PRODUCTS IT STRIKES ME AS AN UNUSUAL COMBINATION IT'S NOT INNATELY LOGICAL SAID REID NAGLE PRESIDENT OF SNL SECURITIES A CHARLOTTE VA FIRM THAT TRACKS BANK MERGERS EVEN VICTOR RILEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KEYCORP CONCEDES THAT THE MERGER MIGHT LOOK A LITTLE STRANGE TO OUTSIDERS ON THE SURFACE YOU CAN SEE THE DIFFERENCES HE SAYS YOU HAVE TO WORK A BIT TO SEE THE SIMILARITIES MR RILEY WHO WILL REMAIN CHIEF EXECUTIVE OF THE NEW KEYCORP AND HIS COUNTERPART AT SOCIETY ROBERT GILLESPIE FIGURE THAT THE COMPETITIVE ENVIRONMENT FOR BANKS WILL ONLY GET TOUGHER IN COMING YEARS BY MERGING THEIR SUCCESSFUL BANKS NOW THEY EXPECT TO BE ABLE TO BLEND THEIR DIFFERENT STRATEGIES INTO A SINGLE COHERENT APPROACH TO BANKING THEY ARGUE THAT THE NEW KEY WILL BE ABLE TO LEVERAGE ITS BRANCH NETWORK WITH SOCIETY'S MORE ADVANCED PRODUCT BASE I'VE ALWAYS FELT THAT IF YOU'RE GOING TO DO SOMETHING YOU SHOULD DO IT WHEN YOU'RE THE STRONGEST AND YOU HAVE ALL THE OPPORTUNITIES AVAILABLE SAID MR RILEY THIS GIVES US AN OPPORTUNITY TO REALLY ENHANCE THE REVENUE STREAM IN THOSE YEARS WHEN PEOPLE SAY BANKING IS GOING TO POSSIBLY SUFFER BECAUSE OF MARGIN PROBLEMS AND LOAN PROBLEMS ADDS MR GILLESPIE THE THING THAT REALLY DRIVES US HERE IS NOT SO MUCH THE COST SAVINGS ALTHOUGH THEY'RE SIGNIFICANT BUT THE MARKETPLACE SYNERGY BANK EXPERTS AGREE THAT REVENUE GROWTH COULD WELL BE ELUSIVE FOR MANY BANKS IN THE 1990S JAMES MCCORMICK PRESIDENT OF FIRST MANHATTAN CONSULTING GROUP CALLS THE DILEMMA BANKS ARE FACING THE REVENUE CRUNCH BUT IT ISN'T JUST ENHANCED REVENUE THE TWO BANKERS ARE SEEKING THE MERGER ALSO GIVES THE COMBINED INSTITUTION A MARKET CAPITALIZATION OF 8 BILLION WHICH WILL LIKELY BE USED AS A PLATFORM FOR ADDITIONAL ACQUISITIONS IN PARTICULAR THEY MAY GO SHOPPING IN PLACES SUCH AS ILLINOIS AND THE UPPER MIDWEST WHERE NEITHER BANK IS WELL REPRESENTED SUCH BANKS AS FIRST BANK SYSTEM INC MINNEAPOLIS AND FIRST CHICAGO CORP COULD BE ATTRACTIVE MERGER CANDIDATES FOR THE NEW KEYCORP ANALYSTS SAID NEITHER FIRST BANK NOR FIRST CHICAGO WOULD COMMENT WHEN IT'S ECONOMICALLY FEASIBLE WHEN IT'S NOT GOING TO BE DILUTIVE THEN WE WILL FILL THESE HOLES AND EXPAND SAID MR RILEY AND THE MERGER COULD PROMPT OTHER BANKS TO RETHINK THEIR OWN STRATEGIES MERGER EXPERTS SAY THIS IS VERY POSSIBLY A HARBINGER OF MORE TRANSACTIONS SAID J CHRISTOPHER FLOWERS A PARTNER IN CHARGE OF BANK MERGERS AT GOLDMAN SACHS & CO ONE THING THAT LEAVES SOME ANALYSTS COOL TO THE DEAL IS THAT THERE HAVEN'T BEEN MANY SUCCESSFUL BANK MERGERS THAT BLENDED TWO DIFFERENT MANAGEMENTS RATHER THE SUCCESSFUL ONES HAVE USUALLY BEEN OUTRIGHT TAKEOVERS IN WHICH ONE BANK MANAGEMENT AND CULTURE DOMINATES INVESTORS STILL SHUDDER AT THE MEMORY OF CITIZENS & SOUTHERN'S MERGER WITH SOVRAN CORP THAT DEAL FOUNDERED WHEN NO SINGLE FORCEFUL LEADER EMERGED TO MAKE TOUGH DECISIONS C&S SOVRAN EVENTUALLY HAD TO BE BAILED OUT BY NCNB CORP NOW NATIONSBANK THE QUESTION IS WILL KEY SHAREHOLDERS BENEFIT AS MUCH AS THEY WOULD WITH OTHER STRATEGIC ALLIANCES ASKS MR NAGLE HE ADDS THOUGH THAT KEY'S FROSTBELT SMALL TOWN STRATEGY WAS POOHPOOHED BY MANY IN THE BANKING INDUSTRY WHO VIEWED KEY AS PECULIAR AND WAYWARD THIS STRATEGY STRIKES ME AS PECULIAR AND WAYWARD AS WELL HE SAID IT MAY WELL WORK OUT WALL STREET IS TAKING A WAITANDSEE ATTITUDE YESTERDAY SHARES OF KEY FELL 1 TO 3750 SOCIETY SHARES WERE UNCHANGED AT 3250 TERMS OF THE AGREEMENT CALL FOR KEY SHAREHOLDERS TO RECEIVE 1205 SHARES OF THE NEW KEYCORP WHILE SOCIETY SHAREHOLDERS RECEIVE ONE SHARE OF THE NEW COMPANY FOR EACH EXISTING SHARE THE MERGER IS VALUED AT ROUGHLY 39 BILLION LIVIA ASHER A REGIONAL BANK ANALYST AT MERRILL LYNCH CALLS THE MERGER MODESTLY POSITIVE FOR SHAREHOLDERS IT'S NOT A HOME RUN MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE LONGTERM RATINGS OF KEYCORP AND SOCIETY CORP UNDER REVIEW FOR POSSIBLE UPGRADE WHILE STANDARD & POOR'S CORP AFFIRMED ITS CURRENT RATING KEY WILL INCUR A ONETIME RESTRUCTURING CHARGE OF 90 MILLION TO 100 MILLION AS A RESULT OF THE MERGER IT EXPECTS TO CUT ANNUAL EXPENSES BY THE SAME AMOUNT ALTHOUGH THE EXECUTIVES IMPLIED TO ANALYSTS THAT THAT WAS A MINIMUM ESTIMATE 9310050009 931005 BUSINESS BRIEF DR PEPPER/SEVENUP COS COURT RULING WILL RESTORE 7UP DISTRIBUTION IN 3 AREAS DR PEPPER/SEVENUP COS WON A FEDERAL COURT ORDER THAT EFFECTIVELY RESTORES FULLSCALE DISTRIBUTION OF 7UPBRAND SOFT DRINKS IN MANHATTAN THE BRONX AND WESTCHESTER COUNTY IN NEW YORK FOR THE FIRST TIME SINCE OCTOBER 1991 US DISTRICT COURT JUDGE JUNE L GREEN IN WASHINGTON RULED IN FAVOR OF DR PEPPER IN A LONGSTANDING DISPUTE WITH THE FEDERAL TRADE COMMISSION EFFECTIVELY RESCINDING THE FTC'S DENIAL OF AN APPLICATION BY HAROLD HONICKMAN A PEPSI BOTTLER IN NEW YORK FOR A LICENSE TO BOTTLE 7UP PRODUCTS IN THE TWO BOROUGHS AND WESTCHESTER DR PEPPER HAD SOUGHT TO TRANSFER THE 7UP LICENSES FOR THOSE AREAS AND BROOKLYN TO HONICKMAN'S PEPSICOLA BOTTLING CO OF NEW YORK AFTER ITS EXISTING 7UP BOTTLERS THERE DECLARED BANKRUPTCY AND CLOSED THEIR DOORS THE COMPANY SAID IT NEEDED A STRONG BOTTLER TO SURVIVE IN THAT HIGHLY COMPETITIVE MARKET THE FTC DENIED THE APPLICATIONS CITING CONCERNS ABOUT DECREASED COMPETITION AMONG BOTTLERS 9310050007 931005 QUARTERLY MUTUAL FUNDS REVIEW ADVISERS SUGGEST TAKING A MORE WORLDLY VIEW BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL HOW FAR ABROAD SHOULD YOU GO MAYBE FARTHER THAN YOU THINK MONEY IS POURING INTO FOREIGN STOCK MUTUAL FUNDS AT RECORD RATES STOCK FUNDS THAT INVEST ABROAD ATTRACTED A RECORD 54 BILLION IN AUGUST 45 OF THE MONTH'S STOCK FUND CASH INFLOWS THERE'S NO DOUBT THAT INTERNATIONAL FUNDS ARE RISKIER THAN DOMESTIC STOCK FUNDS SUSTAINING MORE EXTREME SWINGS IN PRICE AND SWINGS IN CURRENCY VALUES CAN EASILY WIPE OUT OR MULTIPLY MOVEMENTS IN FOREIGN STOCK PRICES BUT IT MAKES SENSE TO SHOULDER THE RISK OF FOREIGN MARKETS EVEN FOR CONSERVATIVE INVESTORS FINANCIAL ADVISERS SAY ANY ALLOCATION HOWEVER SMALL OF INTERNATIONAL OR EMERGING MARKETS TO A DIVERSIFIED PORTFOLIO IS BETTER THAN NO ALLOCATION SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR AT FINANCIAL DESIGN A LARKSPUR CALIF INVESTMENT ADVISORY FIRM STEELYNERVED INVESTORS WITH A LONG TIME BEFORE THEY NEED THE MONEY MIGHT EVEN CONSIDER PUTTING MORE THAN HALF OF THEIR STOCK MARKET HOLDINGS INTO INTERNATIONAL FUNDS SOME FINANCIAL ADVISERS SAY SUCH TALK IS GETTING MORE COMMON IN FINANCIAL CIRCLES WHERE A 10 TO 15 ALLOCATION ONCE WAS CONSIDERED DARING THE BOLDEST INVESTORS MIGHT WANT TO WEIGHT THEIR PORTFOLIOS IN LINE WITH THE SIZE OF CAPITAL MARKETS AROUND THE WORLD SAYS CAMPBELL R HARVEY ASSOCIATE PROFESSOR OF FINANCE AT DUKE UNIVERSITY'S FUQUA SCHOOL OF BUSINESS WITH THAT APPROACH AN INVESTOR WOULD PUT ONLY ABOUT 40 OF ASSETS IN MUTUAL FUNDS INVESTING IN THE US AN ADDITIONAL 5 TO 10 WOULD GO INTO EMERGING MARKET FUNDS WITH THE BALANCE GOING INTO FUNDS INVESTING IN FOREIGN DEVELOPED MARKETS BUT THIS GLOBAL APPROACH IS ONLY FOR THE TRULY BRAVE THE INTENSE SWINGS IN FOREIGN STOCK FUNDS COULD FRIGHTEN AN INVESTOR INTO BAILING OUT AT THE WRONG TIME WHILE AN INVESTOR WOULD HAVE DONE EXTREMELY WELL IN THE PAST DECADE WITH MR HARVEY'S SUGGESTED ALLOCATION ONE WHO BEGAN PURSUING IT IN JANUARY 1990 WOULD HAVE DONE WORSE THAN A SHAREHOLDER OF STRICTLY US FUNDS IN THE THREEYEAR PERIOD AN INVESTOR SHOULD CONSIDER WHAT KIND OF TIME HORIZON YOU HAVE ON THE INVESTMENT AND HOW MUCH RISK YOU'RE WILLING TO TAKE SAYS ROBERT BECKWITT A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS THE BOSTON MUTUAL FUND COMPANY WHY INVEST OVERSEAS AT ALL HISTORICALLY A BROADLY DIVERSIFIED PORTFOLIO OF INTERNATIONAL EQUITIES HAS OUTPERFORMED THE STANDARD & POOR'S 500STOCK INDEX BY A SIGNIFICANT MARGIN SAYS FINANCIAL DESIGN'S MR MIKUS FOREIGN STOCK MARKETS HAVE OUTPERFORMED THE US STOCK MARKET SO FAR THIS YEAR AND MANY INVESTORS EXPECT THE GAINS TO CONTINUE THE ECONOMIC UPTURN THAT PROPELLED US STOCK PRICES HIGHER STILL LIES AHEAD FOR MOST OF EUROPE AND FOR JAPAN AND US STOCKS TRADE AT HIGHER MULTIPLES OF REPORTED EARNINGS BUT THERE'S ANOTHER BENEFIT OF OVERSEAS INVESTING AND IT'S MORE SUBTLE THAN AN ATTEMPT TO HOP ONTO HOT MARKETS DESPITE THEIR WIDER PRICE SWINGS FOREIGN STOCK FUNDS HAVE A CALMING EFFECT ON A PORTFOLIO WHEN COMBINED WITH DOMESTIC STOCK FUNDS THAT'S BECAUSE FOREIGN MARKETS OFTEN MOVE OUT OF SYNC WITH US STOCKS WHEN US STOCK FUNDS ARE IN DECLINE FOREIGNSTOCK FUNDS MAY HAVE RISEN OR AT LEAST INCURRED A LESS SEVERE DECLINE THEY'RE GOING TO ZIG WHEN WE ZAG SAYS FIDELITY'S MR BECKWITT MR BECKWITT BELIEVES THAT WHILE EUROPEAN AND JAPANESE STOCKS MAY OUTPERFORM US STOCKS FOR A STRETCH THEY SHOULD IN THE LONG RUN DO ONLY ABOUT AS WELL AS US STOCKS THOSE ECONOMIES HE SAYS ARE GROWING AS SLOWLY AS THE US THE FASTEST ECONOMIC GROWTH MR BECKWITT SAYS WILL BE IN SOUTHEAST ASIA LATIN AMERICA AND AT SOME POINT IN THIS DECADE IN EASTERN EUROPE HE EXPECTS THE HIGHEST STOCK MARKET RETURNS WILL COME FROM THESE FASTGROWING EMS OF DEVELOPING COUNTRIES MOREOVER EMERGING MARKETS TEND TO BE EVEN MORE OUT OF SYNC WITH US STOCKS THAN OTHER FOREIGN MARKETS ARE THAT MAKES EMERGING MARKETS PARTICULARLY HELPFUL IN TAMING THE SWINGS IN A PORTFOLIO'S VALUE EVEN CONSERVATIVE INVESTORS COULD USE SOME FOREIGN AND EMERGING MARKET FUNDS SAYS MR MIKUS FOR INVESTORS SAVING FOR AN EVENT FIVE YEARS OR LESS IN THE FUTURE MR MIKUS RECOMMENDS A PORTFOLIO OF NOLOAD FUNDS WHICH DON'T CHARGE A SALES COMMISSION THE BULK OF HIS PORTFOLIO'S HOLDINGS ARE IN A SHORTTERM BOND FUND MANAGED BY PACIFIC INVESTMENT MANAGEMENT CO THE FUND REQUIRES A MINIMUM INVESTMENT OF 500000 BUT INVESTORS WILLING TO PAY A 06 TRANSACTION FEE CAN GET IN FOR ONLY 1000 THROUGH BROKER CHARLES SCHWAB & CO BUT MR MIKUS ALSO ALLOTS 20 OF THE CONSERVATIVE PORTFOLIO INTO US STOCK FUNDS AND 15 INTO FOREIGN STOCK FUNDS INCLUDING SOME MONEY IN EMERGING MARKETS BECAUSE THE FOREIGN AND DOMESTIC FUNDS TEND TO COUNTERBALANCE EACH OTHER MR MIKUS SAYS HE CAN PUT MORE MONEY INTO STOCKS THAN IF HE WERE INVESTING ONLY IN US STOCK FUNDS AN AGGRESSIVE INVESTOR COULD PUT EVEN MORE MONEY INTO INTERNATIONAL FUNDS GEORGE D KINDER OF GEORGE D KINDER FINANCIAL SERVICES IN CAMBRIDGE MASS BUILT A PORTFOLIO OF NOLOAD FUNDS FOR A 35YEAROLD SAVING FOR RETIREMENT THIS AGGRESSIVE PORTFOLIO HAS MORE MONEY IN INTERNATIONAL STOCK FUNDS THAN DOMESTIC STOCK FUNDS IT EMPHASIZES SMALLSTOCK FUNDS BOTH IN THE US AND ABROAD AND HAS MONEY IN EMERGING MARKETS MR KINDER ALSO PUT 20 OF HIS PORTFOLIO INTO A SHORTTERM BOND FUND IN LIGHT OF THE HIGH PRICES OF US STOCKS BEFORE RUSHING OFF AND BUYING INTERNATIONAL FUNDS CHECK TO SEE HOW MUCH EXPOSURE TO INTERNATIONAL STOCKS YOU ALREADY HAVE SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER MANY FUNDS INVESTING IN THE US CAN VENTURE ABROAD TOO SOME ACTUALLY HAVE AS MUCH AS HALF OF THEIR ASSETS INVESTED OVERSEAS 9310050006 931005 BUSINESS BRIEF SAFETYKLEEN TO TAKE 4THPERIOD CHARGE CUT JOBS AMID SLUMP IN WASTE INDUSTRY ELGIN ILL SAFETYKLEEN CORP FACING UP TO DECLINING HAZARDOUS WASTE VOLUMES AND OVERCAPACITY OF DISPOSAL OUTLETS SAID IT EXPECTS TO TAKE A FOURTHQUARTER CHARGE CUT JOBS AND WRITE DOWN THE VALUE OF SOME ASSETS THE HAZARDOUS WASTE HANDLER KNOWN WIDELY BY ITS YELLOW VANS THAT DELIVER PARTS CLEANERS TO GAS STATIONS AND OTHER BUSINESSES WOULDN'T ESTIMATE THE SIZE OF THE CHARGE OR THE NUMBER OF JOBS TO BE ELIMINATED IT CURRRENTLY EMPLOYS 6900 PEOPLE SAFETYKLEEN SAID IT RECENTLY BEGAN STUDYING ITS BUSINESSES FOR COST CUTS AND EXPECTS TO FINALIZE A RESTRUCTURING PLAN DURING THE FOURTH QUARTER THE ANNOUNCEMENT CAME AS THE COMPANY DISCLOSED THAT THIRDQUARTER PROFIT GENERALLY WAS FLAT WITH A YEAR EARLIER AND THAT IT EXPECTS NO IMPROVEMENT IN OUR ECONOMIC ENVIRONMENT IN THE FORSEEABLE FUTURE THE COMPANY SAID IT SUBSTANTIALLY REDUCED OUR CAPITAL SPENDING PLANS SAFETYKLEEN IS SUFFERING FROM THE SAME FORCES DEPRESSING PROFITS AND STOCK PRICES THROUGHOUT MOST OF THE HAZARDOUS WASTE INDUSTRY AN ABRUPT SHIFT FROM GROWING WASTE VOLUMES TO SHRINKING ONES OVERCAPACITY OF DISPOSAL AND TREATMENT SITES THAT HAS LED TO PRICE CUTTING AND INCREASING EFFORTS BY CUSTOMERS BIG AND SMALL TO REDUCE THEIR WASTE OUTPUT TO LIMIT BOTH COSTS AND ENVIRONMENTAL LIABILITY LAST WEEK THE WORLD'S LARGEST WASTE HANDLER WMX TECHNOLOGIES INC SAID IT WROTE DOWN THE VALUE OF ITS HAZARDOUS WASTE INCINERATORS AND OTHER ASSETS BY 550 MILLION BEFORE TAXES AND WOULD CUT 1200 JOBS THROUGH THE 1980S AND INTO THE 1990S THESE COMPANIES INVESTED HEAVILY BELIEVING THAT WASTE VOLUMES AND DISPOSAL PRICING WOULD BE STRONG AND THAT INCREASING GOVERNMENT REGULATION WOULD FORCE WASTE INTO THEIR HANDS OUR COSTS HAVE GOTTEN AHEAD OF OUR REVENUE GROWTH SAFETYKLEEN'S CHIEF FINANCIAL OFFICER ROBERT WILLMSCHEN SAID SAFETYKLEEN SHARES ROSE 375 CENTS TO 1550 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WITH LITTLE GROWTH IN SIGHT SAFETYKLEEN SAID ITS CAPITAL SPENDING WHICH PEAKED AT 168 MILLION IN 1991 WOULD FALL TO 120 MILLION THIS YEAR TO ABOUT 100 MILLION IN 1994 AND TO BELOW THAT LEVEL IN 1995 THIRDQUARTER PROFIT OF 58 MILLION OR 10 CENTS A SHARE COMPARED WITH THE YEAREARLIER 62 MILLION OR 10 CENTS A SHARE THE PERIOD ENDED SEPT 11 REVENUE DECLINED SLIGHTLY TO 1820 MILLION FROM 1846 MILLION A YEAR EARLIER ANALYSTS HAD BEEN EXPECTING PERSHARE NET INCOME IN THE TEENS FOR THE PERIOD EVERYTHING'S TERRIBLE SAID DOUGLAS AUGENTHALER AN ANALYST AT OPPENHEIMER & CO IN NEW YORK THE NUMBER OF PARTSCLEANER MACHINES IN SERVICE FELL 11 FROM A YEAR EARLIER TO 593964 WHILE THE AVERAGE PERIOD BETWEEN SOLVENT CHANGES LENGTHENED TO 63 WEEKS FROM 603 WEEKS 9310050005 931005 QUARTERLY MUTUAL FUNDS REVIEW CANADIAN FINDS COMMON SENSE PAYS OFF BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO COLLEAGUES OF MUTUAL FUND MANAGER FRANK MERSCH SOMETIMES REFER TO HIM AS THE PETER LYNCH OF CANADA AND IT MAKES HIM CRINGE I'M NOT MR MERSCH SAYS I'VE JUST TAKEN A COMMON SENSE APPROACH TO INVESTING AND BEEN LUCKY OF COURSE COMMON SENSE IS THE INVESTMENT APPROACH ALSO FAVORED BY THE NOWRETIRED MR LYNCH WHOSE 285 AVERAGE ANNUAL RETURN MADE A STAR OF FIDELITY MAGELLAN FUND IN THE 1980S NOW MR MERSCH DRAWS A SWARM OF FANS AT INVESTMENT CONFERENCES WHILE OTHER SPEAKERS STAND BY IGNORED SO MANY CLIENTS AND FANS TELEPHONED HIM AT HOME AT NIGHT THAT HE GOT AN UNLISTED NUMBER IN CANADA ALTAMIRA PIONEERED DIRECT SELLING OF MUTUAL FUNDS TO INVESTORS WITHOUT A BROKER AND IT REMAINS ONE OF THE COUNTRY'S FEW NOLOAD FUND MANAGEMENT CONCERNS BESIDES MR MERSCH'S FLAGSHIP EQUITY FUND ALTAMIRA HAS 16 OTHER FUNDS ITS MUTUAL FUND ASSETS HAVE TRIPLED IN A YEAR TO 45 BILLION CANADIAN DOLLARS US337 BILLION FRANK HAS SINGLEHANDEDLY DONE A LOT TO CHANGE THE NATURE OF THIS BUSINESS SAYS JOHN ZECHNER ANOTHER TORONTO FUND MANAGER HE HAS FORCED HIS COMPETITORS TO THINK IN DIFFERENT WAYS BEFORE INVESTING FOR EXAMPLE MR MERSCH CONCLUDED THAT NATURAL GAS WAS A GROWTH INDUSTRY BECAUSE OF THE NEED FOR CLEANER FUELS AND HE INVESTED IN CANADIAN ENERGY STOCKS IN 1988 SOME OF HIS PICKS SUCH AS CANADIAN NATURAL RESOURCES WERE TRADING AT LESS THAN C1 TODAY THAT STOCK IS AROUND C21 AND ALTAMIRA IS STILL A SIZABLE INVESTOR MORE RECENTLY MR MERSCH SPOTTED A DECLINE IN US TREECUTTING PERMITS IN THE WAKE OF ENVIRONMENTAL PROTESTS LEADING HIM TO INVEST HEAVILY IN CANADIAN LUMBERCOMPANY STOCKS LAST YEAR A TIMELY BET MR MERSCH IS BETTING ON A TURNAROUND IN EUROPEAN ECONOMIES NEXT YEAR AND IN 1995 BY INVESTING IN PACKAGING COMPANY CCL INDUSTRIES INC WITH OPERATIONS IN BRITAIN STEEL ALSO INTRIGUES MR MERSCH AND ALTAMIRA WHOSE HOLDINGS HAVE BROADENED FROM SMALLER PROFITABLE COMPANIES SUCH AS COSTEEL INC TO INCLUDE STELCO INC A HAMILTON ONTARIO STEELMAKER DOGGED BY A STRING OF LOSSES DESPITE COSTCUTTING RECENTLY MR MERSCH HAS BEEN AGGRESSIVELY ACQUIRING SHARES OF IPSCO INC WHOSE MAIN PRODUCT IS STEEL PIPE ON THE OTHER HAND MR MERSCH IS NOW SHUNNING BANKING STOCKS STILL MARKET FAVORITES IN CANADA IN THE BELIEF THAT THEY HAVE LITTLE MORE UPSIDE EVEN IN A LOWINTERESTRATE ENVIRONMENT HE SAYS HE'LL BUY BACK IN HOWEVER IF STOCK PRICES FALL ABOUT 30 OF THE EQUITY FUND IS IN CASH AS MR MERSCH AWAITS THE ADVENT OF BUYING OPPORTUNITIES THE LATEST VENTURE BY MR MERSCH AND ALTAMIRA A NORTH AMERICAN RECOVERY FUND OPENED LAST MONTH THE FUND ALREADY HAS ATTRACTED C15 MILLION IN CAPITAL THERE ARE FEW GROUND RULES MR MERSCH IS HUNTING FOR INVESTMENTS IN FALLEN ANGELS A GROUP HE DEFINES AS STOCKS THAT ARE OUT OF FAVOR BUT FULL OF POTENTIAL WE COULD LOOK AT THE IMPACT OF CURRENCY VALUES ON STOCKS OR SECTORS AT SCREENING FOR TAX LOSSES THAT MAKE SHELL COMPANIES ATTRACTIVE ACQUISITIONS OR THE IMPACT OF SOMETHING LIKE AN AUTO INDUSTRY BOOM MR MERSCH SAYS CANDIDATES FOR INVESTMENT WILL INCLUDE CANADIAN COMPANIES SUCH AS STELCO AND RETAILER DYLEX LTD AND SMALL REAL ESTATE VENTURES SUCH AS REVENUE PROPERTIES LTD AS MUCH AS 20 OF THE ASSETS PROBABLY WILL FIND HOMES IN THE US IN CHEMICAL COMPANIES SUCH AS DUPONT CO OR OIL REFINERS MR MERSCH SAYS I'VE ALWAYS WANTED TO RUN A PENNYSTOCK FUND MR MERSCH SAYS THIS IS GOING TO BE A RATHER ECLECTIC AND QUIRKY VEHICLE PART OF THE CONCEPT HE EXPLAINS WILL BE TO USE ALTAMIRA'S CAPITAL AND EXPERTISE TO HELP IN THE TURNAROUND OF THE COMPANIES IN WHICH THE FUND INVESTS HE DOESN'T SPEND AS MUCH TIME WORRYING ABOUT BEATING PETER LYNCH OR CONTINUING HIS WINNING STREAK AS HE DOES ABOUT MANAGING INVESTOR EXPECTATIONS WE'VE MADE SO MANY PEOPLE SO MUCH MONEY IT'S QUITE SCARY HE SAYS I WOULD HAVE LIKED TO STAY THE UNDERDOG 9310050004 931005 IN MEXICO BANKS FACE PRESSURE TO UNITE BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY JUST AS IN THE US BANKS IN MEXICO ARE PREPARING FOR MERGERS BUT IT ISN'T THE BULLISH DEVELOPMENT THAT IT SEEMS THE FRIENDLY TREATMENT THE MEXICAN GOVERNMENT HAS GIVEN PRIVATE BANKERS HERE DURING THE PAST TWO YEARS IS ENDING THE RESULT COULD BE FORCED MERGERS UNEXPECTED DECLINES IN PROFITABILITY AND COSTLY RESTRUCTURINGS FOR THE NEXT YEAR MEXICAN BANK STOCKS HAVE BEEN THE DARLINGS OF INTERNATIONAL INVESTORS FOR THE PAST TWO YEARS PROFIT GROWTH HAS BEEN STRONG AND RETURN ON EQUITY HIGH IN THE GIGANTIC BANKING MARKET HERE BUT IT'S AN ELECTION YEAR THE RULING PARTY WANTS CREDIT TO FLOW MEXICO'S CENTRAL BANK ISN'T ABOUT TO LOOSEN MONETARY POLICY RISKING HIGHER INFLATION AND A SINKING PESO SO THE GOVERNMENT IS GOING AFTER PRIVATE BANKS TRYING TO GET THEM TO CUT THEIR HIGH LENDING RATES LAST YEAR SHARES OF BANACCI THE PARENT OF BANAMEX THE LARGEST BANK WITH 42 BILLION IN ASSETS SOARED 567 IN DOLLAR TERMS THE STOCK IS UP ONLY 4 FOR THE FIRST NINE MONTHS OF THIS YEAR SHARES OF GRUPO FINANCIERO BANCOMER WHICH WAS FORMED IN MARCH 1992 WERE UP 217 LAST YEAR AND ARE DOWN 106 IN DOLLAR TERMS SO FAR THIS YEAR BANCOMER IS THE SECONDLARGEST BANK WITH 37 BILLION IN ASSETS US INVESTORS ARE PRESENTED WITH A DILEMMA IF MEXICAN BANKS CAN BECOME EFFICIENT THEY MAY BE ABLE TO SOLIDIFY THEIR GRIP ON THE MEXICAN MARKET FEEDING THE HUGE PENTUP CREDIT DEMAND HERE BUT RESTRUCTURINGS ARE COSTLY PROFITABILITY IS UNDER PRESSURE FROM SOURING LOANS AND THERE'S A GOVERNMENT THAT DESPERATELY NEEDS LOWER LENDING RATES SO CREDIT CAN FLOW INTO THE ECONOMY PROFITABILITY WILL TEND TO BE FLATTER CAUTIONS MARGARET SAYERS MERRILL LYNCH'S MEXICAN BANK STOCK ANALYST SHE EXPECTS MORE LOAN WRITEOFFS IN 1994 AND A LOGICAL DECLINE IN SOME LENDING MARGINS INTERVIEWED IN HIS QUARTERS AT BANCO DE MEXICO CENTRAL BANK HEAD MIGUEL MANCERA SAYS BANKS' LENDING MARGINS ARE A LITTLE WIDE BANKS WILL HAVE TO BE MORE COMPETITIVE WE ARE WORKING ON THIS MORE COMPETITION WILL SHRINK MARGINS NET INTEREST MARGINS THE DIFFERENCE BETWEEN THE RATES AT WHICH A BANK BORROWS FUNDS AND THE RATES AT WHICH IT LENDS MONEY AVERAGED A FAT 85 IN THE BANKING SYSTEM LAST YEAR GENERATING AN AVERAGE RETURN ON EQUITY OF 24 RETURNS SUCH AS THESE MADE THE STOCKS MAGNETIC AND THEY'RE NOW OWNED BY JUST ABOUT EVERY US MUTUAL FUND OR INSTITUTION THAT PLAYS IN INTERNATIONAL MARKETS BUT IF THE GOVERNMENT GETS ITS WAY THOSE SPREADS WILL BE DROPPING FAST THE STOCKS MAY TAKE A HIT THERE ARE GOING TO BE WINNERS AND LOSERS CAUTIONS LAURA Z BERDEJA SENIOR BANK ANALYST WITH BARING RESEARCH HERE THE WINNERS WILL BE THOSE BANKS THAT CAN RAISE ASSET QUALITY AND IMPROVE OPERATING EFFICIENCIES SHE EXPECTS SOME CONSOLIDATIONS BY WEAKER BANKS STARTING IN 1994 WHILE BANKS' COST OF FUNDS ARE 16 TO 17 CURRENTLY MORTGAGE RATES AVERAGE AROUND 30 FOR MOST BORROWERS CREDIT CARD RATES AVERAGE AROUND 40 AUTO FINANCING RATES AVERAGE 30 MEDIUMSIZED BUSINESSES BORROW AT RATES OF AROUND 25 OR HIGHER ANNUAL INFLATION REGISTERS AT ABOUT 9 IN MEXICO CURRENTLY ACCESS TO CREDIT IS JUST ONE OF MANY BITTER RICH VS POOR CONTRASTS THAT THE RULING PARTY IS TRYING TO RESOLVE THIS ELR AS SMALL AND MEDIUMSIZED BUSINESSES FLOUNDER WITH HIGH INTEREST RATES AND SLOW GROWTH GIANT MEXICAN FIRMS SUCH AS CEMENTOS MEXICANOS OR CEMEX HAVE LEAPT ACROSS THE BORDER AND TAKEN LOANS OR SOLD BONDS IN DOLLARS AT HISTORICALLY CHEAP INTEREST RATES THE BIG CONCERN OF THE GOVERNMENT IS THAT THE DOMESTIC FINANCIAL SYSTEM IS NOT RESPONDING TO THE CREDIT NEEDS OF THE REAL ECONOMY SAYS ONE BROKERAGE EXECUTIVE HERE HE ASKED NOT TO BE IDENTIFIED BECAUSE HIS FIRM LIKE MOST MEXICAN BROKERAGE FIRMS OWNS ONE OF THE LARGER BANKS ON THE CONTRARY THE BANKS ARE CONCENTRATING RESOURCES MAKING LOANS TO THE VERY WEALTHY OR TO HIGHRATED CORPORATIONS THAT CAN BORROW IN THE US IN ITS EFFORTS TO CRACK THE CARTEL AND CHEAPEN CREDIT MEXICAN FINANCE OFFICIALS HAVE HANDED OUT NINE NEW BANKING LICENSES THIRTEEN MORE ARE EXPECTED BEFORE THE YEAR CLOSES JAVIER FERNANDEZ CARBAJAL DIRECTOR OF STRATEGY FOR BANCOMER SAYS BANKS HAVE TO BECOME MORE EFFICIENT AND LOWER LENDING SPREADS NO QUESTION ABOUT IT BUT HE ADDS WE ARE COMING FROM A SYSTEM THAT WAS NATIONALIZED FOR 10 YEARS IT WOULD BE CHILDISH TO THINK YOU COULD TRANSFORM A WHOLE FINANCIAL SYSTEM IN 18 MONTHS BANKERS HAVE BEEN PARTICULARLY CRITICAL OF THE ANTIQUATED AND CORRUPT JUDICIAL SYSTEM HERE WHICH MAKES IT DIFFICULT FOR BANKS TO SEIZE ASSETS IF NECESSARY TODAY IN MEXICO WE DON'T HAVE ENOUGH SPECIALIZED COURTS SAYS MR FERNANDEZ CARBAJAL WE HAVE CASES THAT HAVEN'T BEEN RESOLVED FOR NINE YEARS THAT HAS A COST JORGE HIERRO A BANAMEX OFFICIAL AGREES THAT MEXICAN LENDING MARGINS WILL SHRINK BUT HE SAYS BANAMEX IS SHORING UP PROFITS BY RAISING FEES STARTING IN JULY 1991 THE MEXICAN GOVERNMENT AUCTIONED 18 BANKS TO PRIVATE INVESTOR GROUPS RAISING MORE THAN 12 BILLION FOR GOVERNMENT COFFERS THE GROUPS MANY OF THEM ORGANIZED BY THE HEADS OF MEXICO'S FASTMONEY TRADING FIRMS PAID LOFTY PRICES OF 26 TO 53 TIMES BOOK VALUE AND 108 TO 24 TIMES EARNINGS ACCORDING TO BARING RESEARCH AFTER THE BUYOUTS THE INVESTOR GROUPS DISCOVERED THEY INHERITED BILLIONS OF DOLLARS IN BAD LOANS MANY WRITTEN WHEN THE BANKS WERE GOVERNMENT OWNED TODAY SOME 72 OF ALL LOANS IN THE BANKING SYSTEM ARE IN ARREARS IF THE RECESSION CONTINUES NONPERFORMING LOANS COULD CLIMB OUT OF CONCERN FOR THE BAD LOANS AND IN COMPENSATION FOR THE HIGH PRICES PAID REGULATORS HERE HAVE TOLERATED LOAN RATES THAT WOULD BE CONSIDERED USURIOUS BY INTERNATIONAL STANDARDS BUT NO MORE MEXICAN FINANCE OFFICIALS ARE SCOLDING THE BANKS PUBLICLY AND THEY AREN'T EXPECTED TO SLOW COMPETITION NO MATTER HOW MUCH THE BANKERS COMPLAIN IN THE PAST THREE YEARS FUNDING COSTS WERE REDUCED BY 20 PERCENTAGE POINTS WHILE THE BANKS' MARGIN HAS REMAINED CONSTANT UNTIL RECENTLY COMPLAINED GUILLERMO ORTIZ THE FINANCEMINISTRY OFFICIAL WHO OVERSAW THE BANK PRIVATIZATIONS HE MADE THE COMMENT AT A MEXICAN BANKING CONFERENCE IN PUERTO VALLARTA RECENTLY US AND OTHER FOREIGN BANKERS ARE WATCHING THE CARTELBUSTING WITH INTEREST THE HONEYMOON IS OVER SAID ONE US BANKER WHO ATTENDED THE CONFERENCE IN PUERTO VALLARTA THERE WAS A FEELING OF NOSTALGIA HE ADDED AS IF THE GAME HAD CHANGED FOREVER WITH THE NORTH AMERICAN FREE TRADE AGREEMENT IT WILL NAFTA SAYS FOREIGN BANKS CAN HAVE AS MUCH AS 8 OF BANKING CAPITAL IN THE MEXICAN MARKET BY 1994 WITH THEIR TECHNOLOGY AND YEARS OF CREDITANALYSIS EXPERIENCE US BANKS ARE EXPECTED TO OFFER FIRSTWORLD EFFICIENCIES AT CHEAPER COSTS TO MILLIONS OF MEXICANS MANY OF WHOM HAVE BEEN DEPRIVED OF CREDIT FOR TEN YEARS MEXICO'S NEOBANQUEROS ARE FEELING THE HEAT WE ARE CHANGING THE WHOLE TECHNOLOGY SYSTEM EVERYTHING EVEN THESE SAYS MANUEL SAMOZA THE HEAD OF 134 BILLION BANCO MEXICANO POINTING TO HIS TELEPHONE THE COST 120 MILLION I AM NOT FEELING PRESSURE FROM THE MEXICAN FINANCE MINISTRY HE ADDS I AM FEELING PRESSURE FROM MY COMPETITORS STILL GROWTH POTENTIAL FOR MEXICAN BANKS IS ENORMOUS MILLIONS OF MEXICANS ARE JUST STARTING TO BANK FOR THE FIRST TIME AND THOUSANDS DON'T EVEN HAVE A BRANCH YET IN THEIR HOMETOWN THAT'S WHY PABLO MANCERA MANAGER OF EMERGING MEXICO FUND OWNS SHARES OF BANACCI BANCOMER BANCO ATLANTICO AND BANCO MEXICANO IN THE NEW YORK STOCK EXCHANGELISTED FUND HE DECLARES AT A LAKESIDE BREAKFAST IN CHAPULTEPEC PARK THE THREE MOST IMPORTANT PEOPLE IN ANY MEXICAN TOWN ARE THE PRIEST THE MAYOR AND THE BANK BRANCH MANAGER 9310050003 931005 LEISURE & ARTS ON SPORTS 'BOYS BACK ON TRACK AFTER FLATTENING PACK BY FREDERICK C KLEIN DALLAS IN LISTENING TO NATIONAL FOOTBALL LEAGUE PLAYERS IT HELPS TO UNDERSTAND THEIR LANGUAGE TAKE FOR INSTANCE A SUNDAY UTTERANCE OF TROY AIKMAN QUARTERBACK OF THE DEFENDING LEAGUE IE WORLD CHAMPION DALLAS COWBOYS ASKED TO EVALUATE HIS TEAM'S OFFENSIVE PERFORMANCE AGAINST THE GREEN BAY PACKERS AT TEXAS STADIUM EARLIER THAT AFTERNOON HE ANSWER WE EXPECTED TO STRUGGLE MORE THAN WE DID TRANSLATED INTO COMMON ENGLISH THAT WOULD READ WE KICKED THE STUFFINGS OUT OF THEM IT WAS LIKE PLAYING THE LITTLE SISTERS OF THE POOR FOOTBALL PLAYERS SPEAK CIRCUMSPECTLY ABOUT OPPONENTS BECAUSE THEY KNOW THEY'LL HAVE TO FACE THEM AGAIN SOMETIME AND THERE'S NO SENSE MAKING THE BRUTES ANGRIER THAN THEY WOULD BE ANYWAY JOURNALISTS ARE UNDER NO SUCH CONSTRAINTS AND THUS CAN STATE THINGS BALDLY BALDLY STATED THE COWBOYS FOLDED MUTILATED AND SPINDLED THE PACK 3614 WITH ANOTHER FEW YARDS HERE AND THERE THE WINNERS WOULD HAVE SCORED 50 POINTS ALTHOUGH IT WAS ONLY THE FIRST WEEKEND OF OCTOBER AND THE FOURTH GAME OF 16 FOR EACH CONTESTANT IT SEEMED MORE THAN USUALLY CONSEQUENTIAL IT MATCHED TWO TEAMS THAT CAME IN 12 IN THE WONLOST COLUMN AFTER EXPECTING BETTER UNDER THOSE CIRCUMSTANCES AN ADDITIONAL LOSS FOR EITHER WOULD REPLACE THE CALENDAR WITH A CLOCK AND MAKE THE TIME SEEM MORE LIKE ABOUT 15 MINUTES TO MIDNIGHT THE 'BOYS HAD STARTED THE SEASON LIKE ANYTHING BUT CHAMPS LOSING THEIR FIRST TWO GAMES WHILE ACE RUNNING BACK EMMITT SMITH SULKED IN HIS TENT BROODING ON THE INJUSTICE OF ANOTHER RUNNING BACK THURMAN THOMAS OF BUFFALO TO BE SPECIFIC EARNING MORE THAN HE WOULD THE PACK HAD THROWN AROUND MONEY WITH ABANDON IN THE OFFSEASON LAYING OUT SOME 30 MILLION TO CORRAL SEVEN NEWLY LIBERATED FREE AGENTS IN HOPES OF RELIVING PAST GLORIES ONE OF THE SIGNEES DEFENSIVE TACKLE REGGIE WHITE GOT MOST OF THAT SUM AND LEFT HIS OTHER SUITORS WISHING THE MONEY HAD BEEN THEIRS THE SHORTTERM OUTCOMES OF THOSE SITUATIONS TELL A LOT ABOUT THE PECULIAR WAYS THINGS CAN WORK IN PROFESSIONAL SPORTS THESE DAYS AFTER THE COWBOYS STARTED WITH LOSSES TO THE WASHINGTON REDSKINS AND BUFFALO BILLS OWNER JERRY JONES HAVING PREVIOUSLY CRIED NEVER TO SMITH'S SALARY DEMANDS CAVED IN AND GAVE THE YOUNG MAN ENOUGH MONEY TO SETTLE THE CHICAGO SCHOOLLABOR IMPASSE THE REST OF THE 'BOYS CHEERED AND HAVE BEEN STERLING SINCE BUT WHEN WHITE GOT HIS LOOT LINEBACKER TONY BENNETT THE PACKERS' RESIDENT SACK MASTER TOOK TO SULKING AND HAS YET TO QUIT HIS ABSENCE PLUS VARIOUS INJURIES HAVE HELD BACK THE PACK EXPECTATIONS TO THE CONTRARY NOTWITHSTANDING EXPECTATIONS DO NOT WIN BALL GAMES NOTED LEROY BUTLER A GREEN BAY SAFETY ON SUNDAY THE COWBOYS NOT ONLY WON THE BALL GAME THEY ALSO WON THE GAMESWITHINTHEGAME THAT ANALYSTS LOVE TO ANALYZE THEY OUTGAINED THE PACKERS ALMOST 2 TO 1 393 YARDS TO 214 AND OUTRUSHED THEM 96 YARDS TO 36 THEY THREW NO PASS INTERCEPTIONS LOST NO FUMBLES AND COMMITTED BUT TWO PENALTIES BOTH UNIMPORTANT THEY PUNTED BUT ONCE AND THEN ONLY ON THEIR NEXTTOLAST POSSESSION WHEN THE VICTORY HAD BEEN SECURED AND THEY LEFT EGG ON PACKER FACES BY SNOOKERING THE VISITORS WITH AN ONSIDE KICKOFF WHILE THE OUTCOME WAS IN DOUBT THAT CAME ON THE FIRST PLAY OF THE SECOND QUARTER JUST AFTER AN EDDIE MURRAY FIELD GOAL HAD GIVEN DALLAS A 107 LEAD MURRAY NUDGED THE BALL TO THE RIGHT AND DARRIN SMITH AN ENERGETIC ROOKIE LINEBACKER FROM THE UNIVERSITY OF MIAMI RECOVERED IT ON THE PACKER 49YARD LINE FOUR MORE PLAYS AND MURRAY KICKED ANOTHER FIELD GOAL HIS SECOND OF FIVE FOR THE AFTERNOON I WAS SURPRISED AT THE ONSIDE KICK CALL SO THEY HAD TO BE TOO DARRIN SMITH LATER OBSERVED THAT OTHER SMITH EMMITT DID OK TOO IN HIS FIRST START OF THE SEASON HE RAN FOR 71 YARDS IN 13 CARRIES INCLUDING A 22YARD THIRDQUARTER TOUCHDOWN SPRINT AND TEAMMATES TESTIFIED THAT HIS PRESENCE WAS BENEFICIAL IN OTHER WAYS OUR OFFENSE RELIES ON EVERYBODY PLAYING THEIR PART AND HAVING EMMITT BACK GIVES OTHER TEAMS ONE MORE THING TO WORRY ABOUT SAID AIKMAN JUST HIS BEING THERE HELPED OPEN UP OUR PASSING GAME THE WORD OPEN APTLY DESCRIBED THE COWBOY PASSING GAME THEIR TWO SWIFT WIDE RECEIVERS MICHAEL IRVIN AND ALVIN HARPER FRISKED FREELY AMONG THE PACKER DEFENDERS AS IF THEY WERE PLAYING TOUCH IN THE PARK DALLAS GOT ITS FIRST TOUCHDOWN ON A 61YARD AIKMANTOIRVIN COMPLETION AND A 66YARDER TO HARPER SET UP A SECONDQUARTER FIELD GOAL AIKMAN'S 18 COMPLETIONS IN 23 THROWS WERE WORTH 317 YARDS AND THAT DIDN'T INCLUDE A 40YARDER THAT IRVIN WOULD HAVE GRABBED IF DEFENDER ROLAND MITCHELL HADN'T INTERFERED AND BEEN PENALIZED FOR IT BY CONTRAST PACKER QB BRETT FAVRE COMPLETED 21 PASSES FOR BUT 174 YARDS THE UNDERSUNG AMONG THE CHAMPS THE OFFENSIVE LINEMEN ALSO SHONE ESPECIALLY ERIK WILLIAMS THIS 6FOOT6 324POUND THIRDYEAR TACKLE FROM LITTLE CENTRAL STATE UNIVERSITY IN OHIO FOUND HIMSELF ACROSS THE LINE FROM THE AFOREMENTIONED WHITE MUCH OF THE AFTERNOON AND HELD NOT LITERALLY THE REFS RULED HIM TO FOUR TACKLES AND NO SACKS IF WHITE IS WORTH MORE THAN 4 MILLION PER WHAT DOES THAT MAKE HIM WILLIAMS WAS ASKED LATER HAVE TO WAIT UNTIL AFTER NEXT SEASON TO FIND OUT THAT'S WHEN MY CONTRACT EXPIRES THE BIG FELLA ANSWERED UNDERSTANDABLY THE OUTCOME HAD OPPOSITE EFFECTS IN THE TWO LOCKER ROOMS NOTING THAT HE AND HIS MATES NEXT MUST FACE THE TOUGH DENVER BRONCOS AND THE IGNOMINY OF A POSSIBLE 14 START WHITE SAID WE HAVE TO FIND A BETTER WAY TO PLAY ACROSS THE WAY IRVIN FOUND THINGS SO SUNNY HE WAS WEARING DARK GLASSES INDOORS WE'RE BACK TO WHERE WE WERE A YEAR AGO HAVING A GOOD TIME AND FEELING GOOD ABOUT OURSELVES HE BEAMED NO NEED TO TRANSLATE THAT 9310050002 931005 FINANCING BOOM FOREIGN FIRMS RAISE MORE AND MORE MONEY IN THE US MARKETS PRIVATIZATIONS ARE A FACTOR MANY CONCERNS SEEM SET TO AGREE TO SEC'S RULES TODAY'S DAIMLERBENZ ISSUE BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOREIGN COMPANIES ARE FALLING IN LOVE WITH AMERICAN FINANCE IT'S AN IRRESISTIBLE MATCH EXQUISITELY TIMED WHETHER OVERSEAS ECONOMIES ARE BOOMING AS IN MUCH OF LATIN AMERICA OR SWOONING AS IN MUCH OF EUROPE FOREIGN COMPANIES' APPETITE FOR MONEY IS GROWING JUST AS THE US CAPITAL MARKET'S INTEREST IN FOREIGN INVESTMENTS IS SURGING THE LATEST ILLUSTRATION OF THE WIDE SPREAD APPEAL OF US CAPITAL MARKETS IS DAIMLERBENZ AG'S DECISION TO LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE BEGINNING TODAY TO QUALIFY FOR LISTING THE DIVERSIFIED GERMAN AUTO MAKER HAD TO UNDERTAKE A COSTLY EXCRUCIATING REVISION OF ITS ACCOUNTING PRACTICES THAT 2 1/2 WEEKS AGO CAUSED A 592 MILLION FIRSTHALF LOSS THE COMPANY'S FIRST SINCE WORLD WAR II AMERICAN INVESTMENT BANKERS WHO STAND TO PROFIT BY ARRANGING FINANCING FOR FOREIGN COMPANIES ARE UNDERSTANDABLY GLEEFUL THAT DAIMLER WAS WILLING TO SUBJECT ITSELF TO AMERICA'S RIGOROUS ACCOUNTING RULES TO GET ON THE BIG BOARD MARKS A FUNDAMENTAL SHIFT IN THE WAY US FINANCIAL MARKETS ARE VIEWED ABROAD THEY SAY THREE YEARS AGO FOREIGN COMPANIES CONSIDERED THE US FINANCIAL MARKETS AS ATTRACTIVE OR EVEN DESIRABLE SAYS CHARLES STONEHILL A MANAGING DIRECTOR AT MORGAN STANLEY INTERNATIONAL IN LONDON NOW THEY SEE THE US AS INDISPENSABLE THE INCREASING INTERNATIONALIZATION OF FINANCIAL MARKETS WILL MAKE IT EASIER FOR COMPANIES ANYWHERE IN THE WORLD TO SEEK FINANCING IN THE US YOU MAY FIND COMPANIES GOING TO THE US MARKETS AND NOT TO THE HOME MARKETS BECAUSE THEY ARE IN INDUSTRIES THAT THE US INVESTOR BASE MAY UNDERSTAND MORE READILY SAYS MARC ROSSELL A PARTNER AT SHEARMAN & STERLING A NEW YORK LAW FIRM OF COURSE FOREIGN COMPANIES HAVE BEEN TAPPING US INVESTORS FOR YEARS BY SELLING YANKEE BONDS AND STOCK IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS ADRS ARE CERTIFICATES REPRESENTING FOREIGN STOCK HELD ABROAD BY A BANK MANY FOREIGN COMPANIES AVOID THE FULL GLARE OF SECURITIES AND EXCHANGE COMMISSION SCRUTINY BY RESTRICTING THEIR SECURITIES SALES TO SAVVY INSTITUTIONAL INVESTORS BUT THE PACE OF BOTH LISTED AND PRIVATE FINANCINGS IN THE US IS PICKING UP HOLDING ABOUT STEADY FOR ADRS BUT SURGING FOR BONDS IN THE FIRST HALF OF THIS YEAR 63 NEW FOREIGNSTOCK ISSUES VALUED AT 535 BILLION WERE SOLD COMPARED WITH 67 ISSUES VALUED AT 543 BILLION A YEAR EARLIER ACCORDING TO SECURITIES DATA CO BOND OFFERINGS WERE FAR LARGER IN THE FIRST HALF THEY TOTALED 509 ISSUES VALUED AT 4795 BILLION UP SHARPLY FROM 375 VALUED AT 2753 BILLION A YEAR BEFORE THERE'S NO DOUBT THE US MARKET IS THE MOST IMPORTANT SAYS EUGENIO VACS DIRECTOR OF PRIVATIZATION EQUITY AT YPF SA THE ARGENTINE OIL GIANT PRIVATIZED THIS YEAR BY THE GOVERNMENT IN THE WORLD'S LARGEST INITIAL PUBLIC STOCK OFFERING OF THE 304 BILLION OF YPF STOCK SOLD ABOUT 75 WAS PLACED OUTSIDE ARGENTINA AND 46 WAS IN THE US IF WE HADN'T GONE TO THE US WE COULDN'T HAVE MADE SUCH A BIG ISSUE MR VACS SAYS THE WAVE OF PRIVATIZATIONS SWEEPING THE GLOBE MAY WELL PROVE A MAJOR FACTOR IN DRIVING FOREIGN COMPANIES INTO THE ARMS OF AMERICAN INVESTORS IN COMING YEARS ACCORDING TO MORGAN STANLEY THE SELLOFF OF GOVERNMENTOWNED OR CONTROLLED INDUSTRIES IN WESTERN EUROPE ALONE OVER THE NEXT FIVE YEARS COULD TOTAL 100 BILLION TO 150 BILLION EUROPEAN MARKETS CAN'T SATIATE THAT NEED MR STONEHILL SAYS AMERICAN CAPITAL IS CHEAP TOO AT LEAST FOR THE MOMENT US LONGTERM INTEREST RATES ARE AMONG THE LOWEST IN THE WORLD HELD DOWN BY A POWERFUL COMBINATION OF LOW INFLATION AND HEAVY DEMAND FOR LONGTERM BONDS AMONG US INVESTORS DISAP POINTED WITH THE MEAGER RETURNS ON SUCH TRADITIONAL SAVINGS INSTRUMENTS AS BANK CERTIFICATES OF DEPOSIT THOSE LOW RETURNS ARE ALSO FUELING UNPRECEDENTED DEMAND FOR STOCKS AMONG INDIVIDUAL INVESTORS WHO ARE FLOODING MUTUAL FUNDS WITH MONEY THE UPSHOT THE US HAS BECOME A KIND OF FINANCIAL BAZAAR FOR FOREIGN COMPANIES THE AMOUNT OF MONEY AVAILABLE IN THE US FOR INVESTING IS BY FAR THE LARGEST POOL IN THE WORLD AND THE NUMBER OF INVESTORS WHETHER INSTITUTIONAL OR INDIVIDUAL IS MUCH BROADER THAN IN ANY OTHER COUNTRY SAYS JOHN A JENSEN JR A MANAGING DIRECTOR AT MERRILL LYNCH INTERNATIONAL IN LONDON COMPANIES THAT HAVE ALREADY LISTED STOCK ON US EXCHANGES OR ISSUED BONDS IN THE US ARE PLEASED WITH THEIR RECEPTION ESPIRITO SANTO FINANCIAL HOLDINGS SA A MAJOR PORTUGUESE BANK AND INSURANCE HOLDING COMPANY LISTED 2650000 ADRS ON THE NEW YORK STOCK EXCHANGE LAST JUNE SINCE THEN DAILY TRADING VOLUME HAS RUN BETWEEN 60000 AND 70000 ADRS UP FROM A LETHARGIC 15000 TO 20000 SHARES TRADED PREVIOUSLY IN LONDON AND LUXEMBOURG GOING TO NEW YORK ALLOWS OUR SHARE HOLDERS TO FIND A MORE LIQUID MARKET SAYS A DELIGHTED RICARDO ESPIRITO SANTO SALGADO THE COMPANY'S CHIEF EXECUTIVE HE CONCEDES HOWEVER THAT PREPARING THE FINANCIAL DOCUMENTS NEEDED TO MEET US ACCOUNTING STANDARDS TOOK NEARLY A YEAR OF ARDUOUS WORK THE SEC WAS VERY STRICT BUT ALSO VERY UNDERSTANDING OF THE DIFFICULTIES HE SAYS WITH ALL THE FOREIGN INTEREST IN LISTING STOCK ON US MARKETS WHY THE HOOPLA ABOUT DAIMLER'S DECISION AS WITH OTHER GERMAN AND SWISS GIANTS DAIMLER'S LONG HISTORY OF STEADY PROFITS CAN BE ATTRIBUTED PARTLY TO ITS ABILITY TO MASSAGE ITS FINANCIAL STATEMENTS THROUGH OFFTHEBOOKS HIDDEN RESERVES WHENEVER PRODUCT DEMAND SLACKENS AND OPERATING LOSSES DEVELOP THESE COMPANIES TAP THE RESERVES BUILT UP FROM EARLIER EARNINGS TO OFFSET THE LOSS AND SHOW A MODEST PROFIT BUT HIDDEN RESERVES ARE ANATHEMA TO THE SEC WHICH HAS STEADFASTLY MAINTAINED THAT THE ONLY WAY DAIMLER OR ANY OTHER GERMAN OR SWISS COMPANY COULD GET A BIG BOARD LISTING WAS TO DISCLOSE THE RE SERVES AND THEIR EFFECTS ON PROFITS FOR THREE ACRIMONIOUS YEARS THAT ISSUE HAD STALEMATED NEGOTIATIONS BETWEEN THE SEC AND SEVERAL BIG GERMAN COMPANIES FOR MER SEC CHAIRMAN RICHARD BREEDEN RULED OUT ANY RELAXATION OF STANDARDS AND THE GERMAN EXECUTIVES WERE EQUALLY ADAMANT IN REFUSING TO BOW TO THE SEC'S DEMANDS FINALLY LAST MARCH DAIMLER BROKE PUSHED BY ITS NEED FOR CAPITAL IN ADDITION THE PRESTIGE OF THE COMPANY'S LUXURY CARS IN THE US PLAYED A ROLE WE HAVE 300000 MERCEDES DRIVERS IN THE US AND ABOUT TWOTHIRDS OF THEM ARE CERTAINLY WEALTHY SAYS MR LIENER SUGGESTING THAT THE COMPANY'S IMAGE WILL HELP IT TAP THE US FINANCIAL MARKETS AND HE ACKNOWLEDGES THAT INVESTORS GET MORE INFORMATION UNDER US RULES THERE'S A BIG GAP BETWEEN GERMAN ACCOUNTING STANDARDS AND US PRINCIPLES US ACCOUNTING DISCLOSES SO MUCH MORE AND TELLS YOU WHAT'S REALLY HAPPENING IN A COMPANY ALTHOUGH DAIMLER'S COMPROMISE WITH THE SEC STIRRED HOPES THAT THE AUTO MAKER WOULD LEAD THE WAY FOR OTHER MAJOR GERMAN COMPANIES TO COME TO NEW YORK ITS CONCESSIONS SPARKED BITTER RECRIMINATIONS IN GERMANY I REGRET THAT DAIMLERBENZ HAS BROKEN RANKS AND GONE SOLO TO THE USA HELMUT LOEHR CHIEF FINANCIAL OFFICER OF BAYER AG TOLD A COLOGNE NEWSPAPER WE WERE IN FACT AGREED THAT WE WOULD NOT BOW TO THE REQUIREMENTS OF THE US SECURITIES AUTHORITIES NOW DAIMLER HAS EFFECTIVELY CAPITULATED GERMAN INDUSTRY'S INTERLOCKING FINANCIAL STRUCTURE MAKES IT EXTRAORDINARILY DIFFICULT FOR SOME GERMAN COMPANIES ESPECIALLY BANKS TO MEET SEC STANDARDS FOR EXAMPLE DEUTSCHE BANK GERMANY'S LARGEST OWNS A 28 INTEREST IN DAIMLER AS WELL AS SUBSTANTIAL STAKES IN OTHER LARGE GERMAN COMPANIES TO MEET US LISTING STANDARDS THE BANK WOULD HAVE TO INCORPORATE THOSE COMPANIES' FINANCIAL STATEMENTS INTO ITS OWN A MONUMENTAL TASK TO US IT DOESN'T MAKE SENSE TO CONSOLIDATE INDUSTRIAL PROFIT AND LOSSES A DEUTSCHE BANK SPOKESMAN SAYS NEVERTHELESS HE CONCEDES THAT ONCE DAIMLER FINALLY LISTS IT WILL BE REGARDED AS A VERY IMPORTANT STEP FOR OTHERS TO CONSIDER INDEED SOME GERMAN EXECUTIVES SEE WISDOM IN DAIMLER'S MOVE WE ARE CONSIDERING TAPPING THE US CAPITAL MARKETS SERIOUSLY BUT WE ARE NOT IN A HURRY LIKE DAIMLERBENZ SAYS KIRAN BHOJANI DIRECTOR OF INVESTOR RELATIONS AT DUESSELDORFBASED VEBA AG BY LISTING IN NEW YORK HE SAYS THE HUGE CONGLOMERATE COULD RAISE ITS PROFILE IN THE US EXPAND ITS SHAREHOLDER BASE AND LIFT ITS STOCK PRICE IN GERMANY THE FOREIGNERS DETERMINE THE MARKET NOT THE GERMANS HE SAYS IF YOU SAY THE AMERICANS ARE BUYING GERMAN SHARES YOU WILL HAVE AN IMPACT IN GERMANY GERMAN EXECUTIVES ARE WELL AWARE THAT SINCE DAIMLERBENZ ANNOUNCED ITS PLANS FOR A BIG BOARD LISTING ITS SHARES HAVE ROCKETED MORE THAN 30 FAR OUTPERFORMING THE 11 RISE IN THE DOW JONES EQUITY MARKET INDEX FOR GERMANY IN THE SAME PERIOD WE HAVE THE IMPRESSION THAT DURING THE LAST SIX WEEKS THERE WAS AN ENHANCED INTEREST ON THE PART OF AMERICAN INVESTORS TO BUY DAIMLER SHARES IN EUROPE BEFORE THEY OPENED UP FOR TRADING IN THE US MR LIENER SAYS AND TO MORGAN STANLEY'S MR STONEHILL IT'S A SIMPLE EQUATION YOU INCREASE THE DEMAND FOR A FINITE COMMODITY AND THE PRICE RISES ALTHOUGH INVESTMENT BANKERS AND EXCHANGE OFFICIALS ARE PLEASED THAT DAIMLER MAY BE SPURRING RELUCTANT GERMAN AND SWISS CONCERNS TO LIST ON US EXCHANGES EUROPEAN EXECUTIVES SUGGEST THAT THEY ARE ESPECIALLY LOOKING TO NESTLE SA FOR GUIDANCE ON THE LISTING ISSUE WHILE DAIMLER'S CAPITAL NEEDS ARE URGENT THEY CONTEND THE SWISS FOOD GIANT IS IN A BETTER POSITION TO WEIGH CAREFULLY THE PROS AND CONS TRADITIONALLY WE HAVE BEEN AN ICEBREAKER IN MANY TRENDS FOR OTHER COMPANIES SAYS RETO F DOMENICONI GENERAL MANAGER FOR FINANCE ADMINISTRATION AND CONTROL AT NESTLE'S HEADQUARTERS IN VEVEY SWITZERLAND I WOULD IMAGINE THAT IF WE LISTED OTHERS NOT ONLY SWISS BUT OTHER EUROPEAN COMPANIES MIGHT FOLLOW NESTLE HAS ALREADY LAID THE GROUNDWORK BY ADOPTING USSTYLE ACCOUNTING THAT BREAKS OUT DIFFERENT BUSINESS LINES AND BY NOW REPORTING ON A SEMIANNUAL BASIS FOR ALL PRACTICAL PURPOSES IT MEETS THE SEC'S REPORTING REQUIREMENTS THE REQUIREMENTS WOULDN'T OBLIGE US TO DIVULGE ANYTHING WE ARE NOT ALREADY GIVING MR DOMENICONI SAYS BUT HE ACKNOWLEDGES THAT NESTLE REMAINS AMBIVALENT A US LISTING WOULD GIVE US ACCESS TO THE BIGGEST FINANCIAL MARKET IN THE WORLD AND WE COULD SWAP SHARES IN CASE OF AN ACQUISITION HE NOTES ON THE OTHER SIDE 16 OF OUR SHAREHOLDERS ARE IN THE US SO WE AREN'T UNDER ANY PRESSURE TO LIST NESTLE STOCK ALREADY TRADES IN THE US VIA TWO ADR PROGRAMS ONE FOR INSTITUTIONAL INVESTORS AND ONE TRADED OVER THE COUNTER THE EXTENT TO WHICH FOREIGN COMPANIES DECIDE TO LIST THEIR STOCKS IN THE US WILL LARGELY DETERMINE THE FUTURE GROWTH OF THE NEW YORK EXCHANGE WHICH IS HAVING TROUBLE ADDING MORE BIG US COMPANIES TO ITS LISTINGS BIG BOARD CHAIRMAN WILLIAM DONALDSON WHO HAS LONG DESIRED THE GROWTH THAT MAJOR FOREIGN COMPANIES COULD BRING HAS BEEN PUSHING THE SEC FOR YEARS TO ALLOW THEM TO LIST WITHOUT FULLY CONFORMING TO US ACCOUNTING STANDARDS IT IS NOT NECESSARY TO FORCE A FOREIGN COMPANY TO ADHERE TO THE LETTER OF US RULES SAYS MR DONALDSON WHO FREQUENTLY CLASHED WITH THE SEC'S MR BREEDEN WHAT IS NECESSARY IS FOR US INVESTORS TO GET THE INFORMATION THEY NEED ALTHOUGH NO ONE EXPECTS THE SEC TO MODERATE ITS DISCLOSURE RULES EXPERTS NOTE SIGNS SINCE MR BREEDEN LEFT THE SEC LAST MAY THAT THE AGENCY MAY BE WILLING TO MAKE MODEST CONCESSIONS ELSEWHERE THAT WOULD MAKE IT EASIER FOR FOREIGN COMPANIES TO LIST ARTHUR LEVITT JR WHO SUCCEEDED MR BREEDEN DECLINES TO SPECIFY ANY LIKELY CONCESSIONS BUT THE FORMER AMERICAN STOCK EXCHANGE CHAIRMAN SAYS HE IS CONCERNED ABOUT THE ENORMOUS COSTS THAT FOREIGN COMPANIES FACE WHEN TRANSLATING THEIR FINANCIAL DATA TO THE US FORMAT I REGARD FOREIGN LISTINGS AS ONE OF MY TOP TWO PRIORITIES SAYS MR LEVITT WHO ALSO HOPES TO INCREASE PUBLIC CONFIDENCE IN THE DEBT MARKETS HE ADDS I'LL FIND WAYS TO ADDRESS THE COST ISSUE I DON'T KNOW HOW BUT IT'S AN IMPORTANT ISSUE A TERRIBLY IMPORTANT ONE IF MR LEVITT DOESN'T MAKE IT EASIER FOR FOREIGN COMPANIES TO ENTER THE US MARKETS THEY WILL GO ELSEWHERE SOME OBSERVERS SAY THERE ARE SOME 200 GLOBAL COMPANIES WITH MULTIBILLIONDOLLAR SALES WHICH WOULD EASILY QUALIFY FOR LISTING ON THE NEW YORK STOCK EXCHANGE AND THAT IS WHERE THEY BELONG SAYS WILLIAM FREUND A FORMER CHIEF ECONOMIST AT THE BIG BOARD BUT UNLESS THEY HAVE A FINANCIAL REASON LIKE DAIMLERBENZ I DON'T THINK THEY WILL AND IF THEY DON'T THE NEW YORK STOCK EXCHANGE WILL BE CONSIGNED TO A SECONDARY ROLE AMONG WORLD MARKETS PETER GUMBEL AND THOMAS KAMM CONTRIBUTED TO THIS ARTICLE 9310050001 931005 QUARTERLY MUTUAL FUNDS REVIEW CANADIAN BOOM IN FUNDS CRIMPS CASH AT FIRMS BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO MUTUAL FUND SALES ARE SOARING IN CANADA BUT THE BOOM IS CREATING AN ODD PROBLEM CANADIAN MUTUAL FUND COMPANIES ARE STARVING FOR CASH THE PROBLEM ARISES BECAUSE THE CANADIAN INDUSTRY IS DOMINATED BY DEFERREDLOAD MUTUAL FUNDS MUCH LIKE THE B SHARES SOLD BY SOME US COMPANIES THESE BROKERSOLD FUNDS DON'T REQUIRE INVESTORS TO PAY A SALES CHARGE RIGHT AWAY THE STRUCTURE IS TERRIFIC AT ATTRACTING MONEY BUT IT MEANS THAT CANADA'S FUND COMPANIES HAVE TO KEEP PAYING THE SELLING BROKERS A LOT OF SALES COMMISSIONS CASH THEY DON'T YET HAVE IN THEIR POCKETS BECAUSE THEY AREN'T CHARGING INVESTORS AN UPFRONT LOAD HENCE THE CASH PINCH AT MANY COMPANIES TO MAKE MATTERS WORSE CANADIAN INDUSTRY OFFICIALS EXPECT CASH WILL GET EVEN TIGHTER WHEN NEW RULES TAKE EFFECT IN JUNE THAT REIN IN A POPULAR TAXSHELTER ARRANGEMENT USED BY CANADIAN MUTUAL FUND COMPANIES TO RAISE CAPITAL THE STRAIN COULD DRIVE MORE CANADIAN FUND COMPANIES TO RAISE CAPITAL BY SELLING STOCK TO THE PUBLIC CANADA'S FUND INDUSTRY ALSO IS EXPECTED TO CONSOLIDATE WITH SOME SMALLER COMPANIES BUCKLING UNDER COMPETITION AND CONSUMERS MIGHT BE THE LOSERS CANADA'S TRADITIONALLY HIGH MANAGEMENT FEES COULD BE PUSHED FURTHER NORTH WE'RE CONSIDERING CANCELING THE CHRISTMAS PARTY FOR SHORTAGE OF CAPITAL QUIPS ALEXANDER CHRIST CHAIRMAN OF MACKENZIE FINANCIAL CORP A LARGE CANADIAN MUTUAL FUND GROUP STILL THERE WAS NO JOKING WHEN THE COMPANY RECENTLY CUT 10 FROM ITS FIXED EXPENSES THE CASHSQUEEZE PROBLEM ALSO IS EMERGING IN THE US WHERE DEFERREDLOAD FUNDS REPRESENT A SMALL BUT GROWING SEGMENT OF THE INDUSTRY AS BROKERSOLD FUNDS STRIVE TO COMPETE WITH NOLOAD FUNDS MANY ARE BASICALLY SAYING WE DON'T HAVE A CHOICE WE NEED TO HAVE A DEFERREDLOAD CLASS' SAYS GEOFF BOBROFF A SENIOR VICE PRESIDENT AT LIPPER ANALYTICAL SERVICES INC ASSETS OF CANADIAN MUTUAL FUNDS ROSE 42 LAST YEAR TO NEARLY 100 BILLION CANADIAN DOLLARS US7496 BILLION AND ARE EXPECTED TO AT LEAST TRIPLE BY THE END OF THE DECADE IT'S A NICE PROBLEM TO HAVE BUT IT CREATES A FINANCING NEED SAYS BRAD BADEAU CHIEF FINANCIAL OFFICER AT TRIMARK FINANCIAL CORP ANOTHER LARGE CANADIAN MUTUAL FUND COMPANY BECAUSE OF STRONG ASSET GROWTH TRIMARK'S DISTRIBUTION COSTS SOARED TO 51 OF REVENUE LAST YEAR FROM 9 IN 1989 IN THE US SOME BANKS READILY EXTEND LOANS TO MUTUAL FUND COMPANIES BUT MR BADEAU SAYS TRIMARK WAS FORCED TO GO PUBLIC LAST YEAR AFTER BANKERS BALKED AT INCREASING A CREDIT LINE SINCE THE COMPANY'S STOCK OFFERING HE SAYS LENDERS HAVE BEEN MORE RECEPTIVE A SENIOR LENDING OFFICER WITH A MAJOR CANADIAN BANK SAYS THE PROBLEM IS THAT THE MORE SUCCESSFUL THESE FUNDS ARE THE BIGGER THESE BLOODY LOANS GET THE LENDING ORGANIZATIONS DO NOT WANT TO FINANCE AN OPERATING LOSS WHEN WE STARTED IN 1986 THIS BUSINESS WAS A CASH COW THAT'S NOT TRUE TODAY SAYS MARK BONHAM PRESIDENT OF BPI CAPITAL MANAGEMENT CORP A SMALL CANADIAN MUTUAL FUND CONCERN HE SAYS BPI CAPITAL LISTED ITS SHARES ON THE TINY ALBERTA EXCHANGE IN JULY PARTLY AS A SAFEGUARD AGAINST PLANS BY CANADA'S REGULATORS TO LIMIT THE TAX DEDUCTION ON MUTUAL FUND LIMITED PARTNERSHIPS THE MAIN WAY OF RAISING CAPITAL CURRENTLY WHO'S GOING TO BENEFIT FROM THE PROBLEMS PLAGUING CANADA'S DEFERREDLOAD INDUSTRY PERHAPS THE BURGEONING NOLOAD FUND SECTOR WHICH DOESN'T PAY SALES COMMISSIONS AND IS CURRENTLY DOMINATED BY THE COUNTRY'S RICHEST AND BIGGEST BANKS ROYAL BANK OF CANADA THE COUNTRY'S LARGEST BANK RECENTLY BECAME THE NO 2 SELLER OF MUTUAL FUNDS 9310050176 930916 LAW LEGAL BEAT CLINTON'S PLAN FOR MALPRACTICE HAS FAILED TESTS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S PROPOSAL TO RESOLVE MEDICALMALPRACTICE CASES THROUGH OUTOFCOURT PROCEEDINGS HAS ALREADY BEEN TRIED IN MANY STATES FREQUENTLY WITH DISAPPOINTING RESULTS THE ADMINISTRATION'S PLAN WHICH BECAME PUBLIC LAST WEEK WOULD REQUIRE DISGRUNTLED PATIENTS TO ENGAGE IN EARLY SETTLEMENT TALKS AND TO SUBMIT ANY CLAIMS TO TRAINED MEDIATORS OR PANELS OF EXPERTS BEFORE HAVING A CHANCE TO GO TO COURT PATIENTS WHO DIDN'T LIKE THE OUTOFCOURT RESULTS COULD SUE AFTER THE MEDIATION WAS COMPLETED THE THEORY BEHIND SUCH PROCEDURES IS THAT THEY DISPOSE OF MERITLESS CASES QUICKLY ENCOURAGE SETTLEMENTS IN OTHERS AND EVEN IF THE TWO SIDES GO TO COURT THEY CREATE MORE REALISTIC EXPECTATIONS THAT MIGHT LEAD TO SETTLEMENTS LATER ON BUT THOSE ASSUMPTIONS HAVE BEEN DASHED MORE OFTEN THAN NOT LAWYERS FOR BOTH PATIENTS AND DOCTORS SAY IN MANY OF THE 30ODD STATES THAT HAVE ENACTED SIMILAR PROGRAMS IN THE PAST TWO DECADES IN FACT LAWYERS SAY THE PROCEDURES OFTEN DO LITTLE MORE THAN GUM UP THE WORKS BUILDING IN EXTRA DELAYS AND LEGAL COSTS AS A RESULT LEGISLATURES IN AT LEAST SIX STATES INCLUDING THE PRESIDENT'S HOME OF ARKANSAS HAVE JUNKED THE APPROACH ALTOGETHER NEW YORK DISCARDED ITS SYSTEM IN 1991 AMID COMPLAINTS THAT PLAINTIFFS WERE WAITING AS MUCH AS FIVE YEARS FOR A PRETRIAL HEARING ELSEWHERE SIX STATE SUPREME COURTS HAVE RULED THE PROCEDURES ARE UNCONSTITUTIONAL BECAUSE THEY RESTRICT PEOPLE'S ACCESS TO THE JUDICIAL PROCESS WITH THAT HISTORY AS A BACKDROP MR CLINTON'S PROPOSAL HAS MANY MALPRACTICE SPECIALISTS PERPLEXED IT'S STRANGE SAYS PAUL WEILER A PROFESSOR AT HARVARD LAW SCHOOL THE VERDICT ACROSS THE COUNTRY IN THE BULK OF THE JURISDICTIONS THAT HAVE TRIED IT IS THAT IT HAS BEEN A FAILURE LAWYERS SAY THE RECORDS OF THESE PROGRAMS ARE FILLED WITH CASES LIKE THAT OF JOEL STEIN WHO DIED IN A ROCKLAND COUNTY NY HOSPITAL AFTER AN AUTOMOBILE ACCIDENT IN 1977 MR STEIN'S FAMILY FILED A MALPRACTICE SUIT ALLEGING THAT HIS DOCTORS NEGLIGENTLY FAILED TO MAINTAIN HIS BREATHING IN THE EMERGENCY ROOM AFTER SEVERAL YEARS' DELAY THE CASE FINALLY REACHED A PRETRIAL PANEL WHICH RULED UNANIMOUSLY FOR THE DOCTORS ACCORDING TO THE FAMILY'S LAWYER HARVEY WACHSMAN BUT AS IN ALL STATES WITH PRETRIAL SCREENING THE RULING WASN'T BINDING SO MR STEIN'S FAMILY DECIDED TO PROCEED WITH A JURY TRIAL MORE THAN SIX YEARS AFTER THE CASE HAD BEEN FILED A JURY AWARDED 900000 IN DAMAGES TO THE FAMILY THE PRETRIAL PROCESS HAD ADDED NOTHING BUT TIME AND EXPENSE AND IT HADN'T EVEN ACCURATELY MIRRORED HOW THE COURT SYSTEM WOULD EVALUATE THE PATIENT'S INJURY MR STEIN'S CASE ILLUSTRATES MANY OF THE PROBLEMS WITH THE KIND OF OUTOFCOURT PROCEEDINGS CONTEMPLATED BY THE CLINTON ADMINISTRATION AS HEARING RESULTS AREN'T BINDING LOSING PARTIES FREQUENTLY CHOOSE TO GO ON TO TRIAL WHERE THEY CAN WIN VERDICTS INCONSISTENT WITH THE PANEL'S RULING IN MANY STATES THE PANEL RESULTS AREN'T EVEN ADMISSIBLE AS EVIDENCE AT A SUBSEQUENT TRIAL BROADER STUDIES OF OUTOFCOURT PROCEDURES TELL A SIMILAR STORY A 1987 REPORT BY THE NEW YORK JUDICIARY'S CHIEF ADMINISTRATOR FOR EXAMPLE FOUND THAT DELAYS CAUSED BY PRETRIAL HEARINGS CONTINUALLY FRUSTRATE THE ADMINISTRATION OF JUSTICE AND CONSTITUTE A CRISIS OF SIGNIFICANT PROPORTIONS THE REPORT ALSO CONCLUDED THAT THE PANELS WEREN'T KEEPING MALPRACTICE CASES FROM GOING TO TRIAL MOREOVER THE HOPE OF SOME IN THE MEDICAL PROFESSION THAT SUCH PANELS WOULD FAVOR DEFENDANTS MORE OFTEN THAN JURIES DO PROVED TO BE UNFOUNDED A 1980 STUDY OF MALPRACTICE CLAIMS BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS FOUND THAT PRETRIAL PANELS RULED FOR THE PLAINTIFF IN ABOUT 36 OF CASES THAT THEY SCREENED ROUGHLY THE SAME PERCENTAGE OF COURT CASES THAT ENDED IN JUDGMENTS OR SETTLEMENTS AND SETTLEMENT AWARDS WERE ACTUALLY SLIGHTLY HIGHER IN CASES INVOLVING PRESCREENING ACCORDING TO THE NEW YORK CHIEF ADMINISTRATOR'S REPORT NONETHELESS THE CONCEPT CONTINUES TO HAVE ITS ENTHUSIASTS AND ROUGHLY 25 STATES STILL USE SOME TYPE OF OUTOFCOURT SCREENING THE DEVIL IS IN THE DETAILS SAYS LAURA MORLOCK A SOCIOLOGIST AT JOHNS HOPKINS UNIVERSITY WHO HAS STUDIED MARYLAND'S RECORD WITH PRETRIAL PROCEDURES PROF MORLOCK'S STUDY FOUND THAT ABOUT 22 OF MALPRACTICE CLAIMS IN THAT STATE GO TO A JURY BEFORE THEY ARE RESOLVED ABOUT HALF THE PERCENTAGE THAT PROCEED TO TRIAL NATIONALLY MARYLAND'S PROGRAM HAS BEEN COMPARATIVELY SUCCESSFUL SHE SAYS IN PART BECAUSE PRETRIAL PANEL DECISIONS CAN BE USED AS EVIDENCE IN A TRIAL THAT HELPS DETER LOSING PARTIES FROM PURSUING THEIR CASES FURTHER SHE SAYS THE DRAFT OF THE CLINTON PLAN CIRCULATING IN WASHINGTON ISN'T SPECIFIC ABOUT THE DETAILS OF THE OUTOFCOURT PROCEDURES IT WOULD IMPLEMENT THOUGH IT DOES STATE THAT THE CONSUMER IS FREE TO PURSUE THE COMPLAINT IN COURT IF DISSATISFIED WITH THE PRESCREENING RESULT THE PROPOSAL INDICATES THAT VARIOUS ALTERNATIVES WILL BE DEVELOPED BY THE NATIONAL HEALTH BOARD A PRESIDENTIALLY APPOINTED BODY THAT WILL OVERSEE MANY ASPECTS OF HEALTH CARE HEALTH SPECIALISTS HOPE THAT THE FINAL PROPOSAL WILL ADD PROVISIONS THAT MAY HELP AVOID SOME OF THE STATES' FAILINGS FOR EXAMPLE THE ADMINISTRATION COULD DECREE THAT PLAINTIFFS WHO TURN DOWN SETTLEMENT OFFERS MUST PAY THE DEFENDANTS' LEGAL FEES IF A COURT'S ULTIMATE AWARD IS LESS THAN THE DEFENDANT HAD OFFERED BEFORE TRIAL WHETHER THIS IS A GOOD OR A BAD PROPOSAL IN THE END IS GOING TO HINGE VERY HEAVILY ON THE NATURE OF THE PROCEDURES THAT ARE DEVELOPED UNDER IT SAYS MARTIN CONNER PRESIDENT OF THE AMERICAN TORT REFORM ASSOCIATION IN WASHINGTON STILL MANY LAWYERS' AND DOCTORS' GROUPS ARE SKEPTICAL THAT MR CLINTON CAN COME UP WITH ANYTHING THAT WILL WORK BETTER THAN WHAT VARIOUS STATES HAVE IMPLEMENTED MOST OF THE MODELS THAT HAVE BEEN TRIED REALLY DON'T SOLVE THE ISSUE SAYS JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION THERE ARE VERY FEW UNTRIED PROCESSES LEFT IN ADDITION ANY NEW IDEAS FOR OUTOFCOURT REQUIREMENTS WOULD PROBABLY FACE THE SAME LEGAL CHALLENGES THAT HAVE DEFEATED SOME OF THE STATE PROGRAMS FLORIDA'S SUPREME COURT FOR EXAMPLE RULED IN 1980 THAT THE OPERATION OF THE STATE'S PRESCREENING PANELS HAD PROVEN TO BE UNCONSTITUTIONALLY ARBITRARY AND CAPRICIOUS THE DECISION CAME IN THE CASE OF ROBERT KIRSCHGESSNER WHO OBJECTED THAT THE MODERATOR OF THE HEARING HAD ALLOWED ONLY 30 MINUTES FOR THE PROCEEDING AND THEN ILLEGALLY POSTPONED IT THE FLORIDA COURT CITED WHAT IT CALLED A PARADE OF BUNGLING AND DELAYS AND THREW OUT THE OUTOFCOURT PROGRAM THE FLORIDA LEGISLATURE SUBSEQUENTLY PASSED A LAW ALLOWING JUDGES IN MALPRACTICE CASES TO ORDER A PRETRIAL PANEL IF ONE OF THE PARTIES REQUESTS IT FEDERAL PROSECUTORS CLOSED THE BOOKS ON THE 1980S WEDTECH CORP POLITICALCORRUPTION SCANDAL BY ANNOUNCING THAT THEY WON'T PURSUE CASES AGAINST ANY OF THE REMAINING DEFENDANTS SAN FRANCISCO ATTORNEY E ROBERT WALLACH AND FORMER CONGRESSMAN ROBERT GARCIA WON'T BE RETRIED NEW YORK US ATTORNEY MARY JO WHITE SAID BECAUSE MANY YEARS HAVE ELAPSED SINCE THE ALLEGED CRIMES AND BECAUSE OF THE SUBSTANTIAL EXPENDITURE OF PROSECUTORS' RESOURCES ON THE CASE IN A FILING IN FEDERAL COURT IN NEW YORK THE US ATTORNEY'S OFFICE ALSO NOTED THAT MR GARCIA SERVED 104 DAYS IN PRISON BEFORE HIS CONVICTION WAS OVERTURNED IN 1990 BOTH MEN HAD BEEN CONVICTED FOR THEIR DEALINGS WITH WEDTECH A DEFUNCT BRONX DEFENSE CONTRACTOR MR GARCIA ON CHARGES OF EXTORTION MR WALLACH ON CHARGES OF CONSPIRACY AND FRAUD MR WALLACH'S MOST RECENT TRIAL IN WHICH HE REPRESENTED HIMSELF ENDED IN A HUNG JURY EARLIER THIS YEAR MR WALLACH WAS RETRIED AFTER AN APPEALS COURT OVERTURNED HIS FIRST CONVICTION NO OTHER WEDTECH DEFENDANTS REMAIN SAID KATE COSENZA A SPOKESWOMAN FOR THE US ATTORNEY'S OFFICE SHE SAID THE OFFICE DOESN'T KNOW HOW MUCH MONEY THE GOVERNMENT HAS SPENT ON THE LITIGATION WHICH BEGAN IN 1988 AGAINST MR GARCIA AND IN 1987 AGAINST MR WALLACH MR WALLACH WHO IS HUNDREDS OF THOUSANDS OF DOLLARS IN DEBT BECAUSE OF THE TRIALS SAID HE WILL RETURN TO REBUILDING HIS LEGAL PRACTICE WHICH HE RESUMED IN JUNE 1991 IT HAS BEEN A VERY LONG STRUGGLE WHICH I DO NOT REGRET SAID MR WALLACH A FORMER ADVISER TO REAGAN ADMINISTRATION ATTORNEY GENERAL EDWIN MEESE III EVEN JUSTICE DELAYED IS AN IMPORTANT GOAL NEVER TO BE FORSAKEN MR WALLACH WAS ACCUSED OF ILLEGALLY TRADING ON HIS FRIENDSHIP WITH MR MEESE TO HELP WEDTECH WIN DEFENSE CONTRACTS AND TO EARN 1 MILLION IN PAYMENTS FOR HIMSELF FROM THE COMPANY MR GARCIA WHO WAS ACCUSED OF EXTORTING A 20000 NOINTEREST LOAN FROM WEDTECH SAID HE'S TRYING TO PUT HIS LIFE BACK TOGETHER AFTER A VERY DIFFICULT PERIOD MR GARCIA WAS A US REPRESENTATIVE FROM NEW YORK UNTIL HE RESIGNED IN 1990 AND HE NOW WORKS AS A LOBBYIST ON CAPITOL HILL HE SAID HE WON'T RUN FOR OFFICE AGAIN HIS WIFE JANE LEE GARCIA AND FRIEND RALPH VALLONE JR CODEFENDANTS WHOSE CONVICTIONS ALSO WERE OVERTURNED ON APPEAL WON'T FACE FURTHER PROSECUTION THE US ATTORNEY'S OFFICE SAID WHO'S NEWS ROBERT D MCLEAN 48 YEARS OLD WAS ELECTED CHAIRMAN OF CHICAGO LAW FIRM SIDLEY & AUSTIN HE SUCCEEDS HOWARD J TRIENENS 70 WHO HAD BEEN CHAIRMAN SINCE 1975 AND REMAINS A PARTNER MR MCLEAN WHO SPECIALIZES IN FINANCIAL AND SECURITIES LITIGATION WILL CONTINUE AS HEAD OF THE 700LAWYER FIRM'S WASHINGTON OFFICE JUNDA WOO CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR DISPUTE RESOLUTION PLAN FOR MEDICAL LITIGATION WSJ OCT 5 1993 9309160064 YY93 MM10 9310050170 930909 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY STAY OUT OF BOSNIA BY MARK HELPRIN THE BEST AND THE BRIGHTEST ENGINEERED OUR INTERVENTION IN VIETNAM AND THOUGH THE PHRASE BY WHICH WE KNOW THEM HAS BECOME AN IRONY THEY MAY HAVE BEEN RIGHT NOW RESTING UPON FATTED CREDENTIALS THEIR SUCCESSORS ARE CALLING FOR INTERVENTION IN BOSNIA BUT ABSENT THE CONTEXT OF GLOBAL STRUGGLE BETWEEN EAST AND WEST THEIR REASONING MUST BE MULTIFACETED AND THEIR ARGUMENTS SOUND MORE LIKE THOSE OF A LAWYER STRAINING TO WIN HIS CASE THAN A STATESMAN IN A CRISIS WHO LOOKS FOR THE LIGHT OF SURVIVAL THE WAR IN BOSNIA IS NOT A CIVIL WAR THEY SAY BUT UNILATERAL AGGRESSION AND ONLY BY RESPONDING AS IN THE GULF WILL WE DISSUADE EMERGING TYRANNIES FROM TAKING THE STAGE IN A WORLD NO LONGER FROZEN INTO BLOCS THE POTENCY OF TECHNOLOGY ADMINISTERED THROUGH AIR POWER CAN HALT THE ATROCITIES AND CONTAIN THE SERBS' APPETITE FOR EXPANSION SO ADROITLY AS TO PRECLUDE DANGEROUS UNANTICIPATED CONSEQUENCES AND ALTHOUGH INTERVENTION IS JUSTIFIED BY REALPOLITIK THE WAY IS LIGHTED BY MORALITY WHICH IS WHY TODAY'S BEST AND BRIGHTEST COME FROM EVERY BAND OF THE POLITICAL SPECTRUM THIS IN TURN THE ARGUMENT GOES MAKES SUCCESS IN INTERVENTION THAT MUCH MORE LIKELY WOULD THAT ALL THIS WERE SO AND THAT AMERICAN MILITARY ACTION AGAINST A SLAVIC STATE WITH RUSSIA ITS HISTORICAL PATRON WOULD NOT INTENSIFY EUROPEAN VOLATILITY AND THE CRISIS ATMOSPHERE IN THE FORMER EASTERN BLOC THEN INTERVENTION MIGHT BE WARRANTED ON PURELY HUMANITARIAN GROUNDS AS IN SOMALIA ALTHOUGH THE CERTAINTY OF HUMANITARIAN EFFECT MIGHT BE JUST AS CLOUDED AS IT IS IN SOMALIA WOULD THAT ALL THIS WERE SO BUT IT IS NOT SO WHAT IS CIVIL WAR IF NOT DIFFERENT FACTIONS FIGHTING OVER THE COUNTRY IN WHICH THEY HAVE LIVED TOGETHER SPOKEN THE SAME LANGUAGE AND SHARED THE SAME CUSTOMS THAT EACH SIDE IN BOSNIA HAS DECLARED NATIONHOOD MAKES THE CONFLICT BETWEEN THEM NO LESS A CIVIL WAR THAN THE AMERICAN CIVIL WAR IN WHICH THE INTERNATIONALLY RECOGNIZED GOVERNMENTS OF TWO DISTINCT TERRITORIES FOUGHT TO DECIDE THE ISSUE OF SECESSION UNLESS GREAT POWER RIVALS ARE ALREADY ON THE SCENE THE US CUSTOMARILY REFRAINS FROM INVOLVEMENT IN CIVIL WARS BECAUSE THEY ARE INWARDLY FOCUSED AND TEND TO FIND THEIR OWN ANGLE OF REPOSE UNLESS AGGRAVATED AND INTERNATIONALIZED IN WHICH CASE THE BODY COUNT GOES UP WE SHY FROM CIVIL WARS BECAUSE IT IS DIFFICULT TO FIND IN THEM A THREAT TO US INTERESTS AND THEIR NATURE PRECLUDES THE KIND OF WAR WE ARE TEMPERAMENTALLY SUITED TO FIGHT WE DID NOT FIGHT IN KUWAIT BECAUSE ONE SOVEREIGN STATE HAD INVADED ANOTHER FOR THEN WE WOULD HAVE TAKEN THE FIELD WHEN ARAB ARMIES INVADED ISRAEL WHEN ISRAEL INVADED LEBANON VIETNAM CAMBODIA THE SOVIET UNION CZECHOSLOVAKIA AND AFGHANISTAN IRAQ IRAN ETC WE FOUGHT NOT FOR PRINCIPLE BUT FOR THE ECONOMIC LIFEBLOOD UPON WHICH THE STABILITY OF THE WORLD DEPENDS NOR DID WE FIGHT IN KUWAIT TO DETER TYRANTS TYRANTS TEND NOT TO SUBMIT TO DISCIPLINE OR HEED LESSONS IF THAT WERE SO CAESAR WOULD HAVE BEEN DETERRED BY THE LESSON OF PHARAOH NAPOLEON BY CAESAR HITLER BY NAPOLEON SADDAM BY HITLER AND SO ON TYRANTS MORE THAN MOST MEN FEEL THE PLEASURE IN DEFIANCE AND THEY FEED UPON HIGH RISK WHATEVER THE US DOES IN BOSNIA THE WORLD WILL NOT BE SAFE FROM TYRANNY AMONG OTHER THINGS NONE OF OUR OPTIONS WILL IMPRESS AZERBAIJANIS ARMENIANS GEORGIANS TADZHIKS UZBEKS CHECHENINGUSH AND ANY NASCENT DICTATORS IN THE FORMER SOVIET REPUBLICS BECAUSE THEY KNOW THAT IN THE FORMER SOVIET UNION THE US AND NATO HAVE NO FREEDOM OF ACTION AND WHAT KIND OF TYRANNY ARE WE SUPPOSED TO BE DETERRING IS THERE A HITLER AMONG THE CHECHENINGUSH WHO IS IT EXACTLY THAT MUST BE STOPPED TO SPARE THE WEST IF THE FORMER SOVIET UNION EXPERIENCES COUNTERCOUNTERREVOLUTION ITS LEADER WILL BE THE ONE WHOM WE MUST IMPRESS WITH OUR FORTITUDE AND HE WILL BE NO MORE COWED BY OUR MILITARY ACTIONS IN BOSNIA THAN BY THE MORAL AUTHORITY OF THE POPE HE WILL INSTEAD ASK HOW MANY DIVISIONS WE HAVE UNTIL THEY BECOME WAR PROTESTERS HUMANITARIANS USUALLY FIND IT DIFFICULT TO GRASP THAT INTERNATIONALIZATION AND ESCALATION OF LIMITED WAR DRIVE UP THE NUMBER OF CASUALTIES INTERVENTION BASED PURELY ON HUMANITARIAN CONCERNS CAN BE JUSTIFIED ONLY IF NO RISK EXISTS THAT THE INTERVENTION ITSELF WILL NOT MAKE THINGS WORSE UNINTENDED CONSEQUENCES CAN DWARF THE HUMAN TRAGEDY THAT STIMULATED ACTION IN THE FIRST PLACE IT IS HEARTBREAKING BUT IT IS TRUE THAT FEWER PEOPLE MAY SUFFER IF THE WAR IN THE BALKANS IS CONTAINED RATHER THAN IF THE REST OF THE WORLD JOINS IN THIS KIND OF WAR FINDS ITS OWN EQUILIBRIUM AND COMES TO A HALT IF NONE OF THE SIDES IMAGINES THAT IT WILL BE SAVED BY A DEUS EX MACHINA AND HOLDS OUT FOR MORE TERRITORY THAN IT ITSELF CAN SECURE WITHOUT PAYING A TERRIBLE PRICE IN BLOOD THE HOPE WE HAVE EXTENDED TO BOSNIAN MUSLIMS HAS KILLED AS MANY OF THEM AS HAVE SERBS AND CROATS IS THE PRINCIPLE OF BOSNIAN MUSLIM SELFDETERMINATION WORTH THE LIFE OF EITHER A SINGLE BOSNIAN MUSLIM OR A SINGLE AMERICAN IF BY SOME MAGIC THE US COULD EFFORTLESSLY CONTROL THE REALITIES OF BATTLE PERHAPS IT WOULD BE PERHAPS IDEALISTIC CONSIDERATIONS OF SELFDETERMINATION FOR EVEN THE SMALLEST MINORITY COULD MAKE SENSE NOT SURPRISINGLY THE PROPONENTS OF INTERVENTION OFFER THIS PROMISE AS THE ELIXIR WITH WHICH TO SWALLOW THEIR WEAK ARGUMENTS IT IS THE MODERN EQUIVALENT OF HOME BY CHRISTMAS AND A POWERFUL APPEAL GIVEN THAT IN THE GULF WAR IT WORKED AIR POWER MAY TEMPORARILY STAY THE SERBS OR CROATS AND THE MOST INTELLIGENT MILITARY OPTION TAKING OUT THE BRIDGES WOULD SLOW THEM SUFFICIENTLY TO CUT CASUALTIES BUT IN THE END IT IS THE RIFLEMAN WHO WILL DECIDE THOUGH THE ILLUSION WILL PERSIST FOREVER THAT WAR CAN BE NEAT AND PURELY MECHANICAL EVEN AFTER A PUNISHING STRATEGIC BOMBING OF SERBIA THE WAR WOULD FLOW BACK WITH GREATER FEROCITY IN THE QUIET CHANNELS WHERE IT NOW TAKES ITS TOLL FOR AN ALLIED ATTACK WOULD MOBILIZE THE SERBS NOT DISCOURAGE THEM A TASK AT WHICH MILOSEVIC HAS YET TO SUCCEED THE CENTERPIECE OF INTERVENTIONIST TECHNICAL ARGUMENT SEEMS TO BE THE USE OF COUNTERBATTERY FIRE WHICH IS NOT PARTICULARLY EFFECTIVE AGAINST THE MANPORTABLE OR JEEPMOUNTED MORTARS IN WHICH SERBIA IS RICH IF ONLY BECAUSE THE SOVIETS HAVE COUNTERBATTERY RADARS TOO BUT EVEN IF A TECHNICAL TRICK ALLOWED FOR EXAMPLE THE RELIEF OF THE SIEGE OF SARAJEVO EVERY BET WOULD HAVE TO BE INSURED FROM THE GROUND JUST AS THE MUSLIMS HAVE FOUGHT ON AGAINST ALL ODDS IN THE HOPE THAT AMERICA WILL ENTER THE WAR IT WOULD BE IN THE SERBS' PRACTICED INTEREST TO THROW THEMSELVES AGAINST WHOEVER OPPOSED THEM AT WHATEVER COST TO AWAKEN THE SYMPATHY OF RUSSIA ARE THE BEST AND THE BRIGHTEST REALLY CONFIDENT THAT SUCH THINGS WILL REMAIN UNDER THEIR CONTROL THAT THE WAR IN EUROPE WHICH THEY DID NOT FORESEE WILL NOT SURPRISE THEM YET AGAIN IT IS NOW ROUTINE FOR AMERICAN POLITICAL LEADERS TO PROPOSE EXTENDING THE RESPONSIBILITIES OF THE ARMED FORCES WHILE SIMULTANEOUSLY STRIPPING THEM OF THEIR ABILITY TO FIGHT THE FASHIONABLE NEW POLICY IS TO SPEAK LOUDLY WHILE CARRYING A LITTLE STICK INTERVENTION IN BOSNIA MIGHT BE MORE PROMISING IF THE US AND NATO RETAINED THE DETERRENT POWER OF FIVE YEARS AGO FOR THE DANGER LIES NOT IN FAILING TO DETER THE SERBS BUT RATHER IN THE UNPREDICTABLE FORCES THAT MAY BE UNLEASHED IF THE BALKAN WAR IS INTERNATIONALIZED INSTEAD OF EXTENDING THE LIFE OF A TRAGEDY THAT SHOULD HAVE BEEN OVER LONG AGO THE WEST SHOULD CONSIDER WHAT MIGHT HAPPEN IF INTERVENTION BECAME NECESSARY IN LET US SAY GERMANY IN THAT CASE EVEN THE HEARTBREAKING OPTION OF SIMPLE CONTAINMENT WOULD NO LONGER BE AVAILABLE AND SUDDENLY ALL THE HEAVY WEAPONS AND MAJOR FORMATIONS THAT FOR SO MANY YEARS HAVE BEEN SO CARELESSLY DISMISSED AND DISMANTLED WOULD BE SORELY MISSED IF THE WAR IN BOSNIA IS TO BE LIKENED TO THE SPANISH CIVIL WAR ITS SIGNIFICANCE IS NOT THAT ANYTHING WE DO WILL ALTER THINGS TO COME BUT THAT IT IS A WARNING THAT MUST BE HEEDED IN VIEW OF GREATER DANGERS AND MORE EXACTING TRIALS TO A STATESMAN BOSNIA WILL SUGGEST NOT ACTION BUT PREPARATION AS FOR THE BEST AND THE BRIGHTEST A CREDENTIAL DOES NOT CONSTITUTE AN ARGUMENT IT NEVER HAS AND IT NEVER WILL MANIFESTOES FOLLOWED BY LISTS OF NAMES AND GRAND TITLES SHOULD MAKE YOU FEEL LIKE THE MAN AT DINNER WITH THE PROVERBIAL AWEINSPIRING STRANGER THE LONGER THE LISTS AND THE FLOUNCIER THE TITLES THE FASTER YOU SHOULD COUNT YOUR SPOONS MR HELPRIN A CONTRIBUTING EDITOR OF THE JOURNAL IS A NOVELIST AND A FELLOW OF THE HUDSON INSTITUTE SEE RELATED LETTER LETTER TO THE EDITOR LONELY CONFEDERACY WSJ SEPT 10 1993 SEE RELATED LETTER LETTERS TO THE EDITOR WE DIE FOR PRINCIPLE IN WAR NOT OIL WSJ SEPT 24 1993 9309090007 9309240094 YY93 MM09 YY93 MM10 9310050167 930917 POTOMAC WATCH GOP NAFTA CHOICE REAGAN OR SMOOTPEROT BY PAUL A GIGOT AMID THE BRAWL OVER THE NORTH AMERICAN FREE TRADE AGREEMENT A SMALL FACT OF HISTORY IS WORTH RECALLING REED SMOOT AND WILLIS HAWLEY WERE REPUBLICANS THAT PAIR'S NOTORIOUS TARIFF SIGNED BY A REPUBLICAN PRESIDENT HOOVER IN 1930 HELPED SEND THE GOP INTO OBLIVION FOR 20 YEARS THEIR FATE SHOWS THAT WHILE NAFTA IS CERTAINLY A FIGHT AMONG DEMOCRATS IT IS ALSO A TEST OF THE KIND OF PARTY THE GOP IS GOING TO BE IN THE 1990S WILL IT REMAIN THE MODERN REAGANESQUE PARTY OF OPTIMISM AND OPEN MARKETS OR RETURN TO ITS DARKER HISTORICAL ROOTS AS THE TARIFF PARTY THIS DRAMA HAS BEEN OVERLOOKED BY MANY WHO'VE SIMPLY ASSUMED GOP AND CONSERVATIVE SUPPORT FOR NAFTA BUT THAT SUPPORT HAS BEEN LEACHING IN THE FACE OF POLITICAL DEMAGOGUERY THE CHRISTIAN COALITION WAS ONCE GOING TO OFFER AT LEAST MODEST SUPPORT FOR NAFTA LAST WEEK IT DECIDED TO SIT ON ITS HANDS AMID PRIVATE GRUMBLING ABOUT TRILATERAL COMMISSIONS AND OTHER GLOBAL CONSPIRACIES AN INFORMAL POLL OF THE 47 HOUSE GOP FRESHMEN THIS WEEK SHOWED ONLY ABOUT 40 IN FAVOR 20 OPPOSED AND 40 NEUTRAL MANY OF THEM HAVE BEEN SPOOKED BY ROSS PEROT EVEN THE HOUSE GOP LEADERSHIP HAS DECIDED ON THE JIM WRIGHT STRATEGY THAT FRUSTRATED DEMOCRATS EMPLOYED WITH RONALD REAGAN WE'LL SUPPLY OUR VOTES MR PRESIDENT RIGHT AFTER WE SEE YOURS SUCH PIQUE IS UNDERSTANDABLE GIVEN PRESIDENT CLINTON'S NAFTA DIFFIDENCE BEFORE THIS WEEK BUT REPUBLICANS WHO THINK A NAFTA DEFEAT WOULD BE MERELY A CLINTON DEFEAT MAY WANT TO LOOK AGAIN AT THE REAL AGENDA OF MR PEROT PAT BUCHANAN AND OTHER ENEMIES OF NAFTA ON THE RIGHT THEY HAVE MORE ON THEIR MIND THAN MEXICO THEIR GOAL IS NOTHING LESS THAN TO SHOW THEY CAN SET THE AGENDA FOR REPUBLICANS AS WELL AS FOR CONSERVATIVES THROUGH 1994 AND BEYOND OF COURSE SOME CONSERVATIVES CLAIM TO STAND ON PRINCIPLE AGAINST NTA THEY POINT TO THE SIDE AGREEMENTS NEGOTIATED BY MR CLINTON NAFTA IS NOT FREE TRADE AT ALL SAYS MR BUCHANAN WHO OPPOSED NAFTA EVEN BEFORE THERE WERE SIDE AGREEMENTS THIS IS THE SAME MAN OF PRINCIPLE WHO PREACHED PROTECTIONISM IN 1992 WHILE DRIVING A MERCEDES BUT UPON INSPECTION THESE ARGUMENTS TURN OUT TO BE A WEB OF DISTORTION AND IGNORANCE ONE CHARGE IS THAT NAFTA WOULD PREVENT THE US FROM ELIMINATING ENVIRONMENTAL OR LABOR REGULATIONEVER THIS IS NONSENSE THE PACT EXPLICITLY GUARANTEES THE RIGHT OF EACH PARTY TO ESTABLISH ITS OWN LEVELS OF DOMESTIC ENVIRONMENTAL PROTECTION HEALTH SAFETY AND SO ON THE ONLY PURPOSE OF THE SIDE AGREEMENTS IS TO MONITOR THE ENFORCEMENT OF US LAW AND EVEN HERE THE NEW COMMISSIONS PACK LITTLE PUNCH THEY HAVE NO SUBPOENA OR RESTRAININGORDER POWERS WILL HAVE STAFF ENOUGH TO INVESTIGATE ONLY THE WORST COMPLAINTS AND CAN ONLY FINE A GOVERNMENT NOT PRIVATE PARTIES UP TO 20 MILLION IN PRACTICE A FINE WILL ALMOST NEVER HAPPEN SINCE COUNTRIES TEND TO SETTLE DISPUTES VIA DIPLOMACY NAFTA WOULD BE BETTER WITHOUT THESE NEW SMALL BUREAUCRACIES BUT THEIR TOOTHLESSNESS EXPLAINS WHY THE AFLCIO AND THE SIERRA CLUB STILL OPPOSE NAFTA TO CLAIM THEY REPRESENT A SELLOUT OF US SOVEREIGNTY OR CAN TRUMP STATE AND LOCAL RULE IS A LIE MY SOURCES ON ALL OF THIS BY THE WAY INCLUDE JERRY TAYLOR OF THE CATO INSTITUTE ED HUDGINS OF TEXAS REP DICK ARMEY'S STAFF AND JULIUS KATZ WHO HELPED NEGOTIATE NAFTA FOR GEORGE BUSH ALL SOLID FREETRADERS WHO'VE FLYSPECKED THE TREATY NAFTA ISN'T PERFECT FREE TRADE BUT TO DEFEAT IT NOW WOULD LET THE PERFECT BE THE ENEMY OF THE BETTER IN ANY EVENT ALL OF THIS MAY JUST BE COVER FOR RAW ANTIMEXICAN BIAS MR BUCHANAN CALLS MEXICO A PIGPEN CHRIS WHALEN A BUCHANAN ACOLYTE SAYS WHAT ARE THE BIG ISSUES IN MEXICO TODAY VIOLENCE KIDNAPPINGS BY THAT LOGIC GERMANY AND BRITAIN SHOULD SLAP FLORIDA WITH TARIFFS WHEN ITS TOURISTS ARE KILLED OTHERS FRET ABOUT MORE DRUGS AND IMMIGRANTS AS IF A MORE PROSPEROUS MEXICO WOULDN'T REDUCE BOTH THIS IS THE FEAR & LOATHING BRANCH OF CONSERVATISM A BRANCH THAT HAS NEVER CAPTURED AN AMERICAN MAJORITY CONSERVATIVES WON AND HELD THE PRESIDENCY IN PART BECAUSE RONALD REAGAN MANAGED TO LINK HIS PRINCIPLES WITH TRADITIONAL AMERICAN OPTIMISM ABOUT THE FUTURE HE LED A PARTY UNAFRAID TO ENGAGE IN THE WORLD ONE IN SYNC WITH THE GLOBAL TREND TOWARD GREATER FREEDOM THE BUCHANANPEROT RIGHT OR RIGHTLEFT IS TOO CRABBED FEARFUL AND TRIBAL ITS PROTECTIONISM IS A SIREN SONG NO AVOWED PROTECTIONIST EVEN HOOVER WAS A RELUCTANT ONE HAS HELD THE PRESIDENCY SINCE TAFT MR CLINTON CAN PROBABLY REUNITE DEMOCRATS AFTER THE NAFTA FIGHT USING HEALTH CARE AND THE POWERS OF THE PRESIDENCY BUT REPUBLICANS MIGHT NOT BE SO LUCKY JAMES CARVILLE THE CANNY CLINTON STRATEGIST ALREADY SENSES THE POLITICAL OPENING IN THIS MONTH'S CAMPAIGNS & ELECTIONS MAGAZINE HE SAYS THAT THE GOP FASHIONS ITSELF AS A FREE TRADE ANTITAX PARTY THAT NONETHELESS VIEWS ITS SAVIOR AS ROSS PEROT A PROTECTIONIST WHO IS FOR A 50CENT GAS TAX REPUBLICANS WHO WANT TO GUARANTEE A DIVIDED GOP IN 1996 SHOULD GO AHEAD AND ENHANCE THE PEROTBUCHANAN NEXUS BY OPPOSING NAFTA THEY'LL MAKE MR CARVILLE'S DAY SEE RELATED LETTER LETTERS TO THE EDITOR WHO'S AFRAID OF PATRICK BUCHANAN WSJ SEPT 28 1993 9309170047 9309280102 YY93 MM09 YY93 MM10 9310050165 930910 POTOMAC WATCH DEFENSE FIGHT GOP SHOULDN'T SINK TO BORKING' BY PAUL A GIGOT A DOZEN AMERICANS HAVE DIED FIGHTING FOR MUDDLED PURPOSES IN SOMALIA ANOTHER 25000 YANKS MAY SOON LEAVE TO ENFORCE A PEACE IN BOSNIA AND THE EGYPTIAN CIVIL SERVANT WHO RUNS THE UNITED NATIONS HAS BEEN GIVEN A VETO OVER NATO AIR STRIKES AROUND SARAJEVO YET WASHINGTON IS ABOUT TO HAVE A DEBATE OVER VIETNAM SO IT SEEMS FROM THE WAY SOME REPUBLICANS ARE STAGING THEIR NEXT CONFIRMATION BRAWL WITH PRESIDENT CLINTON MOST GOP MEMBERS OF THE SENATE ARMED SERVICES COMMITTEE ARE LOCKED AND LOADED FOR MORTON HALPERIN A DEFENSE ACTIVIST NOMINATED TO THE NEW PENTAGON POST FOR DEMOCRACY AND PEACEKEEPING THEY THINK THEY'VE FOUND A LANI GUINIER FOR FOREIGN POLICY IN MR HALPERIN'S NEON PAPER TRAIL BUT IN DESCRIBING WHAT SOMETIMES BECOMES A COLD WAR CARICATURE REPUBLICANS MAY MISS A CHANCE FOR A MUCHNEEDED DEBATE OVER MR CLINTON'S FOREIGN POLICY IF POLICY IS THE WORD FOR IT CERTAINLY MR HALPERIN IS AN INVITING TARGET UNLIKE MANY ESTABLISHMENT VOICES HE HASN'T SHUNNED CONTROVERSY FOR EIGHT YEARS STARTING IN 1985 HE HEADED THE WASHINGTON OFFICE OF THE AMERICAN CIVIL LIBERTIES UNION IN WHICH ROLE HE WAS OFTEN A LEFTLIBERAL SPEARTHROWER MR HALPERIN MOVED LEFT WITH VIETNAM QUITTING HENRY KISSINGER'S NATIONAL SECURITY COUNCIL STAFF HE LATER TURNED WILDLY NAIVE ON MOST ISSUES OF THE COLD WAR TOO ESPECIALLY IN PERCEIVING A DEFENSIVE SOVIET UNION OF COURSE HE WAS JOINED BY MOST DEMOCRATS AT THE TIME WHICH IS ONE REASON VOTERS DIDN'T PUT A LIBERAL IN THE WHITE HOUSE FROM 1968 UNTIL THE SOVIET UNION COLLAPSED BUT REPUBLICANS AND ESPECIALLY CONSERVATIVES WHO ARE TOO OFTEN DISMISSED AS OUT OF THE MAINSTREAM IN WASHINGTON MAY WANT TO ASK IF BEING WRONG ABOUT THE SOVIET UNION AND VIETNAM IS A LIFETIME DISQUALIFICATION FOR PUBLIC OFFICE VOTERS DON'T SEEM TO THINK SO OR THEY WOULDN'T HAVE PUT AN OXFORD WAR VETERAN IN THE WHITE HOUSE WHICH MAY BE WHY SOME OF THE ATTACKS ON MR HALPERIN STRETCH THE TRUTH ENOUGH TO LOOK LIKE A REVERSE BORKING HE'S BEEN ACCUSED FOR EXAMPLE OF HELPING DANIEL ELLSBERG LEAK THE THENCLASSIFIED PENTAGON PAPERS FROM THE RAND THINK TANK YET AN FBI INVESTIGATION AT THE TIME TURNED UP NO SUCH EVIDENCE AND HENRY ROWEN RAND'S THENPRESIDENT AND THE MAN WHO GAVE MR ELLSBERG ACCESS TO RESEARCH THE PAPERS SAYS I DON'T RECALL HALPERIN HAVING ANYTHING TO DO WITH THAT ANOTHER CHARGE THAT SLIDES INTO DISTORTION IS THAT MR HALPERIN AIDED AND ABETTED PHILIP AGEE A GENUINE SCOUNDREL WHO LEAKED NAMES OF CIA AGENTS IN THE 1970S IT'S TRUE MR HALPERIN SHOWED BAD JUDGMENT IN TESTIFYING IN BRITAIN THAT MORE EVIDENCE SHOULD BE HEARD BEFORE AGEE WAS DEPORTED WHICH HE WAS ANYWAY BUT HIS ERROR SEEMS ROOTED IN THE LIBERTARIAN ZEALOT'S MISTRUST OF ALL SECRECY HE HAS ALWAYS SAID THAT LEAKING AGENT NAMES IS WRONG AND WHILE HE OPPOSED ALL COVERT ACTIONS FOR A TIME IN THE 1970S IN THE 1980S HE HELPED STRIKE A DEAL WITH THENCIA DIRECTOR WILLIAM CASEY THAT MADE SUCH DISCLOSURES A CRIME UNLIKE LANI GUINIER WHOSE EXTREMISM IS CURRENT MR HALPERIN HAS MODIFIED SOME OF HIS VIEWS OVER THE YEARS HE HAS ALSO STUCK TO HIS LIBERTARIAN PRINCIPLES ENOUGH TO DEFEND EVEN PARTISAN ENEMIES AT THE ACLU HE PROTESTED THE UNFAIR TREATMENT OF SUCH REPUBLICANS AS LYN NOFZIGER OLIVER NORTH AND THE CONSERVATIVE STUDENT WRITERS AT THE DARTMOUTH REVIEW AS FOR THE CHARGE OF SUPERDOVISHNESS FORMER REP STEPHEN SOLARZ SAYS MR HALPERIN TOLD HIM AT THE TIME THAT HE SUPPORTED THE GULF WAR THOUGH THE ACLU TOOK NO PUBLIC POSITION ONE IRONY HERE IS THAT MR HALPERIN'S CHIEF TORMENTOR HAS BEEN FRANK GAFFNEY ONCE EVEN ON THIS PAGE PRECISELY THE SORT OF FORTHRIGHT CONSERVATIVE WHOM LIBERALS WOULD TRY TO TORCH IF HE WERE EVER NOMINATED ANOTHER IRONY IS THAT MR HALPERIN IS MORE DEFENSE SECRETARY LES ASPIN'S NOMINATION THAN HE IS BILL CLINTON'S HE AND MR ASPIN WHO IS THE MOST HAWKISH OF THE MAIN CLINTON SECURITY ADVISERS ARE OLD FRIENDS FROM THE MCNAMARA PENTAGON IN THE 1960S MR CLINTON BARELY KNEW OF HIM NONE OF WHICH MEANS MR HALPERIN SHOULDN'T BE INSPECTED FOR HIS CURRENT VIEWS ESPECIALLY ON THE CONFUSION THAT NOW PASSES FOR CLINTON FOREIGN POLICY TO THE EXTENT THERE IS A POLICY IT SEEMS TO BE WHAT JEANE KIRKPATRICK HAS SUMMED UP AS DOING WHAT THE UN CALLS ON US TO DO THUS THE US REMAINS IN SOMALIA NOT OUT OF NATIONAL INTEREST BUT TO PROP UP AN INCOMPETENT UN BUT ON BOSNIA THE SAME UN BECOMES AN EXCUSE FOR DOING NOTHING THIS IS THE SORT OF MINDLESS MULTILATERALISM THAT UNDERMINES PUBLIC SUPPORT FOR THE USEFUL KIND NATO THE GULF COALITION IT PLAYS RIGHT INTO THE HANDS OF ISOLATIONISTS WHO DON'T WANT AMERICA TO INTERVENE ANYWHERE AS THE PENTAGON OFFICIAL IN CHARGE OF PEACEKEEPING MR HALPERIN WOULD BE KNEEDEEP IN THESE ISSUES HIS NOMINATION IS A PERFECT TIME FOR REPUBLICANS AND SUCH SKEPTICAL DEMOCRATS AS GEORGIA'S SAM NUNN TO BEGIN INSTRUCTING VOTERS ABOUT THE STAKES OF ALL THIS THIS IS ALSO MORE FERTILE AND CERTAINLY HIGHER POLITICAL GROUND THAN REFIGHTING THE COLD WAR SEE RELATED LETTER LETTERS TO THE EDITOR HALPERIN MISTRUSTS SPIES IT'S NO SECRET WSJ OCT 4 1993 9309100078 YY93 MM10 9310050164 930915 BOARD OF CONTRIBUTORS WHO'S SUBSIDIZING WHOM BY HERBERT STEIN READERS OF THIS PAGE MAY KNOW THAT I AM ONE OF THE WORLD'S GREATEST TAX LOVERS I DO NOT THINK THAT TAXES IN AMERICA ARE TOO HIGH WHAT IS MORE EXCEPTIONAL I DO NOT THINK THAT MY OWN TAXES ARE TOO HIGH BUT I DO THINK IT IMPORTANT TO KNOW WHO IS PAYING WHO IS GETTING AND FOR WHAT THIS RUMINATION IS INSPIRED BY THE REPORTS THAT AS PART OF ITS HEALTH PROGRAM THE ADMINISTRATION INTENDS TO ASK THAT UPPERINCOME RECIPIENTS OF MEDICARE PAY A HIGHER PREMIUM FOR THAT INSURANCE PROVIDED TO ELDERLY PEOPLE THE ARGUMENT IS THAT RECIPIENTS OF MEDICARE ARE NOW PAYING ONLY 25 OF THE COSTS AND THERE IS NO REASON FOR THE GOVERNMENT TO SUBSIDIZE UPPERINCOME PEOPLE IN THAT WAY THIS IS A PLAUSIBLE ARGUMENT I USED TO MAKE IT MYSELF I USED TO FLAUNT MY OBJECTIVITY BY ASKING PEOPLE RHETORICALLY WHY THE GOVERNMENT SHOULD SUBSIDIZE THE MEDICAL INSURANCE OF PEOPLE LIKE ME BUT ALTHOUGH THAT WAS A PLAUSIBLE THING TO SAY IT WAS WRONG I ASK MYSELF WHO IS PAYING FOR MY MEDICARE IF I AM NOT THE CONVENTIONAL ANSWER IS THAT THE GOVERNMENT IS PAYING BUT WE ALL SEE THROUGH THAT TRANSPARENCY I AM PAYING FOR THE PORTION OF MY MEDICARE COSTS THAT IS NOT COVERED BY THE MEDICARE PREMIUM I AM PAYING MAINLY WITH MY FEDERAL INCOME TAXES AND ALSO THROUGH THE SHARE OF THE CORPORATE PROFITS TAX THAT I BEAR INDIRECTLY INSOFAR AS PART OF THE COSTS OF MEDICARE ARE NOW FINANCED BY THE FEDERAL DEFICIT MY CHILDREN AND GRANDCHILDREN WILL PAY IN FACT MY WIFE AND I ARE PAYING FOR MORE THAN THE COSTS OF MEDICARE FOR OURSELVES BY A REASONABLE ALLOCATION OF OUR TAXES AMONG FEDERAL USES THE SHARE OF OUR TAXES THAT PAYS FOR MEDICARE FAR EXCEEDS THE COST OF OUR MEDICARE THAT IS WE ARE NOT ONLY PAYING FOR OUR OWN MEDICARE WE ARE ALSO SUBSIDIZING SOMEONE ELSE'S MEDICARE I DO NOT OBJECT TO THAT IN PRINCIPLE I REGARD TRANSFERRING INCOME FROM SOME PEOPLE TO OTHER PEOPLE AS A MAJOR AND LEGITIMATE FUNCTION OF GOVERNMENT BUT I WOULD LIKE TO KNOW WHO I AM SUBSIDIZING THE POPULATION OF MEDICARE RECIPIENTS CAN BE DIVIDED INTO FOUR CLASSES A PEOPLE WHOSE TOTAL TAXES ALLOCABLE TO MEDICARE DO NOT COVER THEIR MEDICARE COSTS AND WHO ARE POOR IN THE SENSE THAT IN THE ABSENCE OF MEDICARE THEY WOULD QUALIFY FOR MEDICAID AND OTHER WELFARE PROGRAMS B PEOPLE WHOSE TOTAL TAXES ALLOCABLE TO MEDICARE DO NOT COVER THEIR MEDICARE COSTS BUT WHO ARE NOT POOR IN THE FOREGOING SENSE C PEOPLE WHOSE TOTAL TAXES ALLOCABLE TO MEDICARE APPROXIMATELY EQUAL THEIR MEDICARE COSTS SO THAT THEY ARE PAYING THEIR WAY D PEOPLE WHOSE TOTAL TAXES ALLOCABLE TO MEDICARE EXCEED THEIR MEDICARE COSTS AND WHO ARE SUBSIDIZING OTHERS I DO NOT KNOW HOW MANY PEOPLE ARE IN EACH CLASS OR WHAT THE INCOME LEVELS ARE THAT DIVIDE ONE CLASS FROM ANOTHER STATISTICIANS COULD FIGURE THAT OUT BUT I AM CONFIDENT THAT EACH OF THE CLASSES IS BIG ENOUGH TO MAKE THE GENERAL IDEA SIGNIFICANT IN MY OPINION THERE ARE TWO THINGS WRONG WITH THIS PICTURE AS ALREADY INDICATED I DO NOT OBJECT IN PRINCIPLE TO REDISTRIBUTION OF INCOME I BELIEVE THAT EXTREME INEQUALITY IN THE DISTRIBUTION OF INCOME IS IN THE WORD OF HENRY SIMONS MY PROFESSOR OF 50 YEARS AGO UNLOVELY I THINK THAT IT IS A PROPER FUNCTION OF GOVERNMENT TO TRY TO REMEDY THAT BY REDISTRIBUTION IF THAT WORKS BUT I WOULD EMPHASIZE THE WORD EXTREME I DO NOT OPPOSE INDEED I FAVOR REDISTRIBUTION FROM CLASS D TO CLASS A BUT I AM NOT SO MUCH OF AN EGALITARIAN AS TO WANT REDISTRIBUTION TO THE CLASS B PEOPLE THEY ARE NOT POOR EVEN BY THE STANDARDS OF AMERICA NEAR THE END OF THE 20TH CENTURY TO SAY NOTHING OF THE STANDARDS OF ANY OTHER TIME OR PLACE MOREOVER THE REDISTRIBUTION THAT GOES ON WITHIN CLASS C IS UNNECESSARY AND INEFFICIENT THIS IS A REDISTRIBUTION FROM A PERSON IN HIS ROLE AS TAXPAYER TO THE SAME PERSON IN HIS ROLE AS RECIPIENT OF MEDICAL BENEFITS IN OTHER WORDS IT IS A DISINCENTIVE TO EARN INCOME AND AN INCENTIVE TO USE MEDICAL CARE NEITHER OF THESE INCENTIVE EFFECTS IS WHAT WE NEED THESE INCENTIVE EFFECTS MAY NOT BE VERY POWERFUL THERE IS MUCH DISAGREEMENT ABOUT THEIR FORCE BUT THEY ARE IN THE WRONG DIRECTION AND SERVE NO USEFUL PURPOSE THESE THOUGHTS ABOUT MEDICARE THROW SOME LIGHT ON THE CURRENT ATTITUDES TOWARD THE WELFARE STATE A COMMON VIEW AT LEAST AMONG MANY OF MY FRIENDS IS THAT THE WELFARE STATE HAS BEEN A GREAT FAILURE AND NO ONE WANTS IT ANYMORE AND YET I STILL SYMPATHIZE WITH THE WORDS OF ANOTHER OF MY FORMER PROFESSORS JACOB VINER WHEN I WAS YOUNG ALL MY PROFESSORS WERE WISE HE WROTE IF THEREFORE I NEVERTHELESS CONCLUDE THAT THE WELFARE STATE LIKE OLD SIWASH IS REALLY WORTH FIGHTING FOR AND EVEN DYING FOR AS COMPARED TO ANY RIVAL SYSTEM IT IS BECAUSE DESPITE ITS IMPERFECTIONS IN THEORY AND IN PRACTICE IN THE AGGREGATE IT PROVIDES MORE PROMISE OF PRESERVING AND ENLARGING HUMAN FREEDOMS TEMPORAL PROSPERITY THE EXTINCTION OF MASS MISERY AND THE DIGNITY OF MAN AND HIS MORAL IMPROVEMENT THAN ANY OTHER SOCIAL SYSTEM WHICH HAS PREVIOUSLY PREVAILED WHICH PREVAILS ELSEWHERE TODAY OR WHICH OUTSIDE UTOPIA THE MIND OF MAN HAS BEEN ABLE TO PROVIDE A BLUEPRINT FOR THE PROBLEM IN AMERICA TODAY IS THAT WE HAVE TWO WELFARE STATES ONE IS AIMED HOWEVER IMPERFECTLY AT THE EXTINCTION OF MASS MISERY THAT IS THE ONE VINER PRAISED AND I SUPPORT THE OTHER MAINLY SLOSHES MONEY AROUND AMONG PEOPLE WHO ARE NOT POOR EACH OF THESE PEOPLE HOPES THAT HE WILL BE A WINNER BUT MOST ARE SURE TO BE DISAPPOINTED THAT IS THE WELFARE STATE OF MEDICARE OF SOCIAL SECURITY OF FARM SUBSIDIES OF NEARLY UNIVERSAL GRANTS FOR COLLEGE TUITION AND SO ON AS FAR AS FEDERAL EXPENDITURES ARE CONCERNED THIS WELFARE STATE FOR THE NOTPOOR IS ABOUT FIVE TIMES AS BIG AS THE WELFARE STATE FOR THE POOR IT IS THE WELFARE STATE FOR THE NOTPOOR THAT IS MOST DIFFICULT TO JUSTIFY BUT IT IS THIS WELFARE STATE THAT IS MOST DIFFICULT TO CUT BACK FOR OBVIOUS POLITICAL REASONS HOWEVER INCENSED THE PUBLIC MAY BE ABOUT THE WELFARE STATE WHEN THEY HEAR IT DESCRIBED ON RADIO TALK SHOWS THAT IS NOT THE WELFARE STATE THEY WANT TO CURTAIL AND EVEN THE CONSERVATIVES WHO MOST RAIL AGAINST THE WELFARE STATE ARE TIMID ABOUT ATTACKING THAT ONE A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW SEE RELATED LETTER LETTERS TO THE EDITOR REDISTRIBUTION SYNONYM FOR THEFT WSJ OCT 4 1993 9309150172 YY93 MM10 9310050144 930913 COLLEGE TEACHERS THE NEW LEISURE CLASS BY GENE I MAEROFF DO YOU HAVE ANY IDEA HOW MANY HOURS A WEEK THE AVERAGE COLLEGE TEACHER ACTUALLY SPENDS IN CLASS WITH STUDENTS A TOTAL OF 98 TO 105 HOURS ACCORDING TO VARIOUS SURVEYS THAT'S RIGHT AN AMOUNT OF TIME SLIGHTLY GREATER THAN THE WORKDAY OF MOST AMERICANS AND THE AVERAGE IS INFLATED BY THE SCHEDULES OF COMMUNITY COLLEGE TEACHERS WHO SPEND 15 TO 16 HOURS A WEEK IN THE CLASSROOM WHAT MAKES THESE ASTONISHING FIGURES ESPECIALLY NOTEWORTHY RIGHT NOW IS THE HANDWRINGING IN ONE STATE AFTER ANOTHER OVER CONSTRAINTS ON THE BUDGETS FOR HIGHER EDUCATION AND THE DIFFICULTY OF HOLDING THE LINE ON TUITIONS TWENTY STATES MADE MIDYEAR CUTS IN THEIR BUDGETS FOR HIGHER EDUCATION DURING THE 199293 ACADEMIC YEAR THE UNIVERSITY OF CALIFORNIA SYSTEM HAS SLASHED 900 MILLION FROM ITS BUDGET DURING THE PAST FOUR YEARS THE CITY UNIVERSITY OF NEW YORK PROPOSES TO CONSOLIDATE ACADEMIC PROGRAMS ON ITS VARIOUS CAMPUSES THE FLAGSHIP CAMPUS OF THE UNIVERSITY OF MAINE HAS EMBARKED ON A PROGRAM TO CAP ENROLLMENTS AND ELIMINATE 20 ADMINISTRATIVE POSITIONS AND 10 ACADEMIC PROGRAMS MEANWHILE LITTLE IS MENTIONED ABOUT THE WORK SCHEDULES OF FACULTY MEMBERS PRODUCTIVITY IS A DIRTY WORD WHEN IT COMES TO HIGHER EDUCATION THIS IS NOT TO SAY THAT ALL OF HIGHER EDUCATION'S FISCAL PRESSURES COULD BE RELIEVED SIMPLY BY ASSIGNING MORE CLASS HOURS TO PROFESSORS THERE ARE GROUNDS AND BUILDINGS TO MAINTAIN NEW STRUCTURES TO BUILD AND EQUIP RESEARCH TO FUND LIBRARIES TO STOCK STUDENTS TO FEED AND HOUSE AND ADMINISTRATIVE EXPENSES YET THE COST OF AN EDUCATION TO A STUDENT AND HIS FAMILY SURELY MUST HAVE SOME CONNECTION TO THE PRODUCTIVITY OF FACULTY MEMBERS MANY FACULTY MEMBERS HAVE TWO OR EVEN THREE DAYS A WEEK WHEN THEY NEVER ENTER THE CLASSROOM MOST FACULTY MEMBERS SAY THAT THEY SPEND ABOUT AN HOUR A WEEK PREPARING FOR EACH HOUR OF TEACHING TOGETHER INSTRUCTION AND PREPARATION ACCOUNT ON AVERAGE FOR APPROXIMATELY 20 HOURS A WEEK IT IS WIDELY ACKNOWLEDGED THOUGH THAT SOME PROFESSORS LECTURE FROM THE SAME NOTES FOR SEVERAL YEARS WITH BUT A SOUPCON OF CHANGE SO HOW DOES A PROFESSOR USE THE REMAINDER OF HIS WORKWEEK FIGURES GATHERED BY THE HIGHER EDUCATION RESEARCH INSTITUTE AT UCLA HELP ANSWER THE QUESTION THE WORK SCHEDULE IS FILLED OUT LARGELY BY CONDUCTING RESEARCH AND THEN WRITING ABOUT THE FINDINGS ADVISING AND COUNSELING STUDENTS ATTENDING COMMITTEE MEETINGS AND PERFORMING ADMINISTRATIVE TASKS BUT THERE IS GREAT UNEVENNESS IN USES OF TIME FROM INSTITUTION TO INSTITUTION AND EVEN AMONG FACULTY MEMBERS IN THE SAME DEPARTMENT PRESSURES TO DO RESEARCH ARE ENORMOUS ON YOUNGER SCHOLARS WHO ARE SEEKING PROMOTION AND TENURE WHILE SOME MEMBERS OF THE FACULTY ARE CONSTANTLY PRESSED FOR TIME OTHERS FIND ABUNDANT OPPORTUNITIES FOR PLAYING TENNIS RUNNING ERRANDS TAKING ON CONSULTING ASSIGNMENTS THAT GENERATE EXTRA INCOME AND FOR MERELY DOING NOTHING SPECIAL BY THEIR OWN ADMISSION ALMOST HALF THE FULLTIME FACULTY SAY THEY SPEND NO MORE THAN FOUR HOURS A WEEK ON RESEARCH AND SCHOLARLY WRITING AS A COROLLARY 45 OF THE NATION'S ENTIRE PROFESSORIATE HAD NO PROFESSIONAL WRITINGS ACCEPTED OR PUBLISHED DURING A GIVEN TWOYEAR PERIOD ALMOST 90 OF FACULTY MEMBERS SAY THAT THEY GIVE NO MORE THAN EIGHT HOURS A WEEK EITHER TO COUNSELING STUDENTS OR TO ATTENDING MEETINGS AND MORE THAN HALF OF THE ENTIRE FACULTY GIVE LESS THAN FOUR HOURS A WEEK TO EITHER OF THOSE TASKS CERTAINLY ANY CONSCIENTIOUS PROFESSOR DOES A LOT OF READING AND REFLECTING BUT SO DO PROFESSIONALS IN OTHER FIELDS AND NO ONE NECESSARILY PAYS THEM FOR THE TIME INVOLVED THE SCHEDULE ON CAMPUS ADDS UP TO A PLEASANT LIFE FOR MOST FACULTY MEMBERS WHO ARE AT LEAST WORKING AT JOBS THEY LIKE AND THEY GET SUMMERS OFF FEW GROW RICH BUT MOST EARN BETWEEN 40000 AND 70000 FOR THEIR NINEMONTH YEAR AVERAGE FACULTY SALARIES RANGE FROM 32420 FOR ASSISTANT PROFESSORS AT BACCALAUREATE COLLEGES TO 66780 FOR FULL PROFESSORS AT DOCTORALLEVEL UNIVERSITIES THE POINT HERE IS THAT THE WORK SCHEDULE TAKEN FOR GRANTED IN HIGHER EDUCATION OUGHT TO BE EXAMINED IN RECOGNITION OF CURRENT FISCAL EXIGENCIES FOR STARTERS IT WOULD BE GOOD TO KNOW JUST HOW MUCH DAMAGE IF ANY WOULD BE DONE TO STUDENTS BY ASKING MORE FACULTY MEMBERS TO TEACH MORE HOURS LOOKING AT THE SITUATION CASE BY CASE HOW MUCH OF THE TIME NOW SPENT AWAY FROM THE CLASSROOM COULD BE REALLOCATED TO INSTRUCTION ALSO IT IS TIME TO REVISIT THE ISSUE OF RESEARCH AND PUBLICATION EVEN AT PRIVATE FOURYEAR COLLEGES ONLY 6 OF THE FACULTY MEMBERS HAD AT LEAST FIVE PROFESSIONAL WRITINGS ACCEPTED OR PUBLISHED DURING A GIVEN TWOYEAR PERIOD ABOUT HALF THE FACULTY AT FOURYEAR INSTITUTIONS AND MORE THAN 90 AT TWOYEAR COMMUNITY COLLEGES SAID IN A SURVEY BY THE CARNEGIE FOUNDATION FOR THE ADVANCEMENT OF TEACHING THAT THEIR INTERESTS LIE PRIMARILY IN TEACHING NOT RESEARCH AND THAT TEACHING SHOULD BE THE MAIN CRITERION FOR PROMOTION WHY SHOULD TIME FOR RESEARCH BE BUILT INTO ALL SCHEDULES WHEN EVERYONE DOESN'T DO RESEARCH OR EVEN WANT TO DO IT IN FACT THE NOTION THAT CONDUCTING RESEARCH AND PUBLISHING THE RESULTS RENDERS ONE A BETTER TEACHER IS QUESTIONABLE THOUGH FEW IN THE ACADEMY WILL ADMIT IT MANY SCHOLARLY INQUIRIES ARE SO NARROW THESE DAYS THAT THEY HARDLY LEND THEMSELVES TO THE USUAL TEACHING ASSIGNMENT FINALLY THOUGH NOT MUCH IS SAID ABOUT IT WHAT HELPS MAKE IT POSSIBLE FOR THE NATION'S 524000 FULLTIME FACULTY MEMBERS TO ENJOY THE KINDS OF SCHEDULES THEY HAVE IS THE FACT THAT AN ADDITIONAL 299000 MEN AND WOMEN LABOR AS PARTTIME MEMBERS OF THE FACULTY THESE PARTTIMERS ARE COMPENSATED USUALLY MEAGERLY ONLY FOR THE ACTUAL INSTRUCTIONAL HOURS THEY PROVIDE AND NOT EVEN ACCORDED TIME FOR RESEARCH THIS BIFURCATED FACULTY STRUCTURE SUGGESTS SOME SERIOUS QUESTIONS THAT ARE NOT BEING RAISED IF IT IS ALL RIGHT FOR ONETHIRD OF THOSE WHO TEACH NOT TO BE PROVIDED WITH SCHEDULES THAT INVOLVE CARRYING OUT THE REST OF THE FACULTY ROLE THEN WHY MUST THE OTHER TWOTHIRDS BE GIVEN SO MUCH TIME AND IF THIS ARRANGEMENT IS NOT IN THE BEST INTERESTS OF HIGHER EDUCATION THEN PERHAPS IT MAY BE APPROPRIATE TO ASK SOME OF THE FULLTIMERS TO START BEHAVING MORE LIKE PEOPLE WITH FULLTIME JOBS SO THAT NOT AS MANY PARTTIMERS ARE NEEDED MR MAEROFF IS A FELLOW AT THE CARNEGIE FOUNDATION FOR THE ADVANCEMENT OF TEACHING PRINCETON NJ SEE RELATED LETTERS LETTERS TO THE EDITOR THE DAILY GRIND OF THE LEISURE CLASS' WSJ OCT 5 1993 9309130072 YY93 MM10 9310050074 930916 LEISURE & ARTS FILM SCORSESE'S OPULENT AGE OF INNOCENCE' BY JULIE SALAMON THOUGH MORE MONEY IS SPENT ON MOVIES THAN EVER BEFORE IT'S RARE TO SEE A PICTURE WHERE BEAUTY COMMANDS THE BIG BUCKS NOT EXPLOSIVES OR MECHANICAL CREATURES THE AGE OF INNOCENCE MARTIN SCORSESE'S ADAPTATION OF THE EDITH WHARTON NOVEL IS MANY THINGS AND THOSE ARE OPEN TO DISCUSSION BUT IT IS UNCONTESTABLY THE MOST GORGEOUS AMERICAN MOVIE I'VE SEEN IN YEARS I MEAN GORGEOUS ALMOST DEFIANTLY GORGEOUS NOT PRETTY THIS ISN'T JUST ANOTHER SUPERFICIAL PERIOD PIECE THAT'S RIGHT ON THE DETAILS OF 19THCENTURY CUISINE AND COSTUME BUT WRONG IN SPIRIT THE CHARACTERIZATIONS ARE WONDERFULLY ASTUTE THE CAST IS IMPECCABLE ESPECIALLY THE MARVELOUS MINOR PARTS LIKE MIRIAM MARGOLYES'S BRILLIANTLY MISCHIEVOUS PORTRAYAL OF MRS MINGOTT THE FAT DOYENNE OF NEW YORK SOCIETY WHO'S SO LARGE SHE CAN'T BUDGE FROM HER HOME IN ALMOST ALL WAYS MR SCORSESE AND SCREENWRITER JAY COCKS HAVE BEEN DUTIFUL TO MS WHARTON'S TEXT INDEED THE PICTURE'S WEAKNESSES AND THEY ARE MINOR ARE PROBLEMS OF EXCESSIVE FAITHFULNESS NOT FAITHLESSNESS MS WHARTON'S STORY OF DOOMED LOVE MAKES SENSE ONLY IN THE CONTEXT OF 1870S NEW YORK DRAWING ROOM SOCIETY AN OPULENT WORLD THEN ON THE VERGE OF EXTINCTION IN TODAY'S WORLD FOR EXAMPLE NEWLAND ARCHER WOULD SEEM LIKE A COMPLETE WIMP FOR NOT IMMEDIATELY RUNNING OFF WITH ELLEN OLENSKA HIS OBVIOUS SOULMATE WHEN IT WAS RELATIVELY EASY FOR HIM BEFORE HIS MARRIAGE TO ELLEN'S COUSIN MAY ELLEN IS IN NEW YORK AFTER SEVERAL YEARS ABROAD WHERE SHE MARRIED A POLISH COUNT SHE HAS RETURNED HOME HER REPUTATION TARNISHED MANY WAYS FOR HAVING LIVED ON THE CONTINENT FOR MARRYING A FOREIGNER FOR LEAVING HIM ONCE SHE'D MARRIED HIM MR SCORSESE UNDERSTOOD THAT HE HAD TO ESTABLISH WHAT THE SOCIETY WAS BEFORE HE COULD MAKE THE LOVE STORY COMPREHENSIBLE HE UNDERSTOOD THAT IT MIGHT BE DIFFICULT FOR A MODERN AUDIENCE TO UNDERSTAND ARCHER'S RELUCTANCE TO BUCK THE COMPLICATED SYSTEM OF SOCIAL CONVENTION THAT COULD BE DEFIED ONLY BY SOMEONE OF TREMENDOUS IMAGINATION AND COURAGE THEN AS NOW PRIVILEGE WAS DIFFICULT TO GIVE UP ESPECIALLY FOR A CREATURE OF IT LIKE ARCHER SO IN THE FILM AGE OF INNOCENCE MR SCORSESE PRESENTS THAT SOCIETY IN OPULENT DETAIL NOT WITH GENTEEL PAINTERLY ADMIRATION BUT THROUGH AGGRESSIVE EXAMINATION THROUGHOUT THE FILM THE CAMERA INSISTENTLY FOCUSES ATTENTION ON THE ARTIFACTS OF THE CULTURE ASSEMBLED BY PRODUCTION DESIGNER DANTE FERRETTI CALLING CARDS UMBRELLAS WALLPAPER TABLE SETTINGS HE DECLARES HIS INTENTION RIGHT AT THE START DURING A NIGHT AT THE OPERA WHERE ALL NEW YORK SOCIETY IS ON DISPLAY WE ARE INTRODUCED TO THE PLAYERS IN A DIZZYING RUSH OF IMAGES CUTTING BETWEEN THE FANCY AUDIENCE IN ALL ITS SPLENDOR TO THE STAGE PERFORMANCE OF FAUST THE SPLENDOR BOTH AWES AND SUFFOCATES AND IF IT DOESN'T THE EXTRAVAGANT ELMER BERNSTEIN SCORE WILL REMIND YOU THAT IT'S SUPPOSED TO YET EVEN MICHAEL BALLHAUS'S EXPERTLY MANIPULATED CAMERA ALONE COULDN'T CAPTURE PERHAPS THE MOST IMPORTANT PART OF THE BOOK MS WHARTON'S IRONIC COMMENTARY ON THE HYPOCRITICAL LUXURIOUS NEW YORK WORLD IN WHICH SHE WAS RAISED AND FROM WHICH SHE EVENTUALLY FLED THE FILMMAKERS REALIZED THIS AND INCLUDED A NARRATION WITH MS WHARTON'S VOICE GIVEN A NICE COOL READING BY JOANNE WOODWARD THE NARRATION IS IMPORTANT FOR ANOTHER REASON AS WELL WITHOUT IT NEWLAND ARCHER WOULD BE ALMOST IMPOSSIBLE TO COMPREHEND NOT BECAUSE DANIEL DAYLEWIS WHO PLAYS HIM DOESN'T DO A GOOD JOB BUT BECAUSE HE DOES A VERY GOOD JOB HIS NEWLAND ARCHER NEVER REVEALS MUCH ONLY HINTING AT THE REBELLIOUSNESS AND DESIRE HIDING BENEATH HIS POLISHED EXTERIOR SO THE NARRATION BECOMES CRITICAL TO LETTING US KNOW WHAT'S ON ARCHER'S MIND INCLUDING HIS SLY NASTY OBSERVATIONS ABOUT HIS NICE PRETTY FIANCEE MAY WITHOUT THAT CLUE TO THE INTERNAL INTERESTING ARCHER HE WOULD SEEM LIKE A BROODING BORE MR DAYLEWIS COMES OFF THAT WAY A LITTLE BIT ANYWAY SIMPLY BY PERFECTLY CAPTURING ARCHER'S SENSE OF PROPRIETY OF GENTLEMANLINESS I ADMIT I'VE ALWAYS FOUND ARCHER TO BE A MADDENING CHARACTER AS A GIRL I USED TO SOB WITH FRUSTRATION WHILE READING THE BOOK WISHING HE WOULD ACT THE WAY I THOUGHT A ROMANTIC HERO SHOULD FOLLOW HIS PASSION AS AN ADULT I APPRECIATE HOW MUCH MORE VALUABLE A LITERARY CHARACTER HE IS AS HE IS RESTRAINED BY HIS OWN LIMITATIONS OR BY RESPONSIBILITY DEPENDING ON YOUR INTERPRETATION PART OF ME STILL WISHES HE WOULD GO FOR IT RUN OFF TO EUROPE WITH ELLEN CERTAINLY HIS RESTRAINT LIMITS ARCHER'S POTENTIAL AS A MOVIE HERO IT'S HARD TO GET WORKED UP OVER THE MAN WHO DOESN'T ACT UNLESS WE CAN FEEL HIS ANGUISH AND HIS PASSION IT'S A LITTLE BIT LIKE MAKING ASHLEY WILKES NOT RHETT BUTLER THE CENTERPIECE OF GONE WITH THE WIND IN THIS MOVIE NEWLAND ARCHER IS BEST UNDERSTOOD THROUGH THE WOMEN WHO LOVE HIM AND UNDERSTAND HIM AND WHO POLITELY FIGHT FOR HIS SOUL THEY ARE BEAUTIFULLY PLAYED BY MICHELLE PFEIFFER AND WINONA RYDER AS MAY ELLEN'S LOVING COUSIN AND RIVAL MS RYDER MANAGES TO CONVEY BOTH THE YOUNGER WOMAN'S OUTWARD SIMPLICITY AND INNER STEEL SHE LETS YOU SEE BOTH POSSIBLE INTERPRETATIONS OF MAY AS SOMEONE WHO IS HORRIBLY MANIPULATIVE AND ADMIRABLY DETERMINED MS PFEIFFER IS ELLEN A WOMAN WHO OPENLY REVEALS HER VULNERABILITY AS WELL AS HER RAKISHNESS WHILE SHE TRIES TO REINSTATE HERSELF INTO NEW YORK SOCIETY WITH SUBTLE GRACE THE ACTRESS LETS YOU SEE THE SLIGHT SULKINESS OF SOMEONE ALWAYS HOLDING HER TONGUE AS WELL AS THE MATURITY OF AN EXPERIENCED WOMAN WHO KNOWS WHEN THE PAIN OF A RELATIONSHIP OUTWEIGHS ITS PLEASURES IN HER EXQUISITE COSTUMES SHE IS ONE OF THE MANY MAGNIFICENT SIGHTS IN THIS MAGNIFICENT MOVIE VIDEO TIP MR SCORSESE HAS SAID THAT ONE OF THE MOVIES THAT INSPIRED HIM TO MAKE THIS ONE WAS WILLIAM WYLER'S THE HEIRESS A 1949 PICTURE SET IN THE NEW YORK SOCIETY OF 1900 SEE IF YOU CAN CONNECT THE DOTS SEE RELATED LETTER LETTERS TO THE EDITOR WHARTON WAS NO MS WSJ OCT 5 1993 9309160062 YY93 MM10 9310050060 930907 P&G KEEPS TABS ON WORKERS OTHERS NEW BOOK ASSERTS SQUAD LED BY EXFBI AGENT IS SAID TO MONITOR VENDORS AD AGENCIES AND REPORTERS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL A NEW BOOK ASSERTS THAT PROCTER & GAMBLE CO CLOSELY MONITORS THE ACTIVITIES OF ITS EMPLOYEES AS WELL AS OUTSIDE ADVERTISING AGENCIES SUPPLIERS AND REPORTERS COVERING THE COMPANY SOAP OPERA THE INSIDE STORY OF PROCTER & GAMBLE BY WALL STREET JOURNAL REPORTER ALECIA SWASY STATES THAT P&G HAS FOR YEARS EMPLOYED FORMER AGENTS OF THE CENTRAL INTELLIGENCE AGENCY AND THE FEDERAL BUREAU OF INVESTIGATION AS WELL AS FORMER POLICE OFFICERS AS PART OF A SECURITY DEPARTMENT THAT THE BOOK SAYS CONDUCTS INVESTIGATIONS BORDERING ON HARASSMENT AND INVASION OF PRIVACY THE BOOK WHICH IS BEING PUBLISHED BY RANDOM HOUSE INC THIS MONTH ACKNOWLEDGES THAT P&G IS AN AMERICAN SUCCESS STORY AND A STAR PERFORMER ON WALL STREET WHOSE FOOD AND HOUSEHOLD PRODUCTS ARE FOUND IN 98 OF ALL US KITCHENS AND PANTRIES STILL THE BOOK IS CRITICAL OF WHAT IT CALLS THE DARK SIDE OF P&G THE BOOK SAYS P&G'S SECURITY DEPARTMENT'S ACTIVITIES HAVE INCLUDED OBTAINING MEDICAL RECORDS OF EMPLOYEES WATCHING THEM WITH VIDEO CAMERAS MONITORING THEIR TELEPHONE CALLS FROM P&G OFFICES AND THEIR HOMES AND FOLLOWING THEM ON BUSINESS TRIPS OUTSIDE AD AGENCIES ALSO HAVE BEEN MONITORED WITH P&G SOMETIMES DICTATING THEIR INTERNAL BUSINESS DECISIONS THE BOOK SAYS MS SWASY SAYS IN THE BOOK THAT SHE INTERVIEWED CURRENT AND FORMER EMPLOYEES AS WELL AS CUSTOMERS CONSULTANTS AND COMPETITORS SEVERAL FORMER EXECUTIVES INTERVIEWED FOR THIS ARTICLE CONFIRMED THAT P&G'S SECURITY OFFICIALS AT THE CINCINNATI HEADQUARTERS AT TIMES HAVE CONDUCTED EXTENSIVE INVESTIGATIONS OF INSIDERS AND OUTSIDERS MOREOVER THE COMPANY ENCOURAGES EMPLOYEES TO TURN IN COWORKERS SUSPECTED OF VIOLATING COMPANY RULES THEY SAY THERE'S A TREMENDOUS OLDBOY NETWORK AMONG THE EXPOLICE OFFICERS SO THAT THROUGH CONTACTS AND BUDDIES THEY HAVE UNOFFICIAL SOURCES AND ACCESS TO CREDIT BANKING AND MEDICAL RECORDS A FORMER P&G EXECUTIVE SAYS ON AT LEAST ONE OCCASION THE COMPANY EMPLOYED AS AN INVESTIGATOR SOMEONE WHO ALSO WORKED AS A POLICE OFFICER A P&G SPOKESWOMAN ASKED TO COMMENT ON THE BOOK SAID BASED ON WHAT WE'VE SEEN IT APPEARS TO BE A ONESIDED AND INACCURATE PORTRAYAL OF THE COMPANY AND ITS ACTIONS ASKED TO ELABORATE THE SPOKESWOMAN SAID WE'RE NOT GETTING INTO THE DETAILS THE BOOK MAINTAINS THAT P&G'S SECURITY SQUAD LED BY FORMER FBI AGENT JAMES JESSEE IS SO ZEALOUS THAT PEOPLE CAN BE FIRED FOR LEAVING A COMPANY PHONE BOOK ON THEIR DESK ONE FORMER EXECUTIVE DESCRIBES BOSSES SEIZING AND SCRUTINIZING PERSONAL MEDICAL RECORDS TO PRY INTO AN EMPLOYEE'S PERSONAL LIFE ONE BRAND MANAGER WHO WASN'T IDENTIFIED IS QUOTED IN THE BOOK AS SAYING THAT WHILE LUNCHING AT A CINCINNATI RESTAURANT HE AND COLLEAGUES DISCUSSED AN AD ALREADY ON THE AIR LATER THAT DAY THE MANAGER'S BOSS WHO WASN'T PRESENT AT LUNCH SCOLDED HIM FOR TALKING ABOUT THE AD IN PUBLIC THE BOOK SAYS ANOTHER EMPLOYEE TRIED TO DETERMINE IN THE MID1970S WHETHER THE COMPANY WAS MONITORING HER HOME PHONE SHE CALLED A COWORKER WITH WHOM SHE HAD PREVIOUSLY DISCUSSED HER PLAN TO ARRANGE A FAKE MEETING THEY WERE THE ONLY PEOPLE WHO KNEW OF THE ARRANGEMENT BUT A P&G MANAGER SHOWED UP AT THE MEETING PLACE MS SWASY WRITES THE BOOK QUOTES P&G AS DENYING IT HAS ACCESS TO POLICE AND MEDICAL RECORDS AND CONTENDING THAT IT CHECKS PHONE BILLS IN RESPONSE TO SPECIFIC CHARGES OF SECURITY VIOLATIONS P&G HAS ALSO INTERVENED IN AGENCIES' DECISIONS TO MERGE ACCORDING TO THE BOOK EXECUTIVES AT CUNNINGHAM & WALSH WERE TOLD THEY MIGHT LOSE P&G'S BUSINESS IF THEY DIDN'T FIRST GET THE COMPANY'S APPROVAL FOR PLANS TO MERGE WITH NW AYER IN 1987 MS SWASY SAYS P&G BLESSED THE MERGER BUT IMPOSED GUIDELINES ON WHAT AYER COULD AND COULDN'T CHANGE SHE WRITES THE COMPANY HAS A VERY BROAD CONFLICTOFINTEREST POLICY THAT SHARPLY LIMITS AD AGENCIES' DEALINGS WITH OTHER CLIENTS FOR EXAMPLE WELLS RICH GREENE HAD TO RESIGN THE HILLS BROS COFFEE ACCOUNT TO WORK ON P&G'S CITRUS HILL ORANGE JUICE ACCOUNT THE BOOK SAYS BECAUSE THE COMPANY DEEMED THE PRODUCTS WERE COMPETITIVE AS BOTH ARE BEVERAGES SUPPLIERS ALSO ARE CLOSELY WATCHED BY P&G THE BOOK SAYS A MANAGER WHO TRIED TO TAKE A JOB WITH A SUPPLIER WAS TOLD BY BOSSES THAT P&G WOULD END ALL CONTACTS WITH THAT COMPANY IF HE LEFT MS SWASY WRITES THE MAN WHO STAYED AT P&G SAYS THAT WAS THE DAY MY CAREER WENT INTO HIBERNATION IN RESPONSE A P&G SPOKESMAN IS QUOTED AS SAYING WE DON'T RECRUIT SUPPLIERS' EMPLOYEES AND WE EXPECT THEM NOT TO RECRUIT OUR EMPLOYEES AS THIS CAN CREATE CONFLICTS OF INTEREST AND CONCERNS ABOUT THE HANDLING OF CONFIDENTIAL BUSINESS INFORMATION MS SWASY HERSELF HAS BEEN THE OBJECT OF P&G SCRUTINY IN 1991 P&G PERSUADED THE LOCAL CINCINNATI PROSECUTOR TO LAUNCH A GRANDJURY INVESTIGATION TO IDENTIFY P&G EMPLOYEES WHO MAY HAVE LEAKED INFORMATION TO MS SWASY THE GRAND JURY SUBPOENAED HUNDREDS OF THOUSANDS OF TELEPHONE RECORDS IN AN EFFORT TO UNCOVER WHO HAD CALLED MS SWASY'S HOME OFFICE AND FAX NUMBERS THE BOOK SAYS A FORMER P&G MANAGER WAS INTERROGATED BY A PARTTIME P&G SECURITY EMPLOYEE WHO ALSO WAS A CINCINNATI POLICE OFFICER THE FORMER MANAGER CALLED MS SWASY TO WARN HER ABOUT THE PROBE WHICH ENDED AFTER THE JOURNAL BROKE THE STORY IN 1991 AND THROUGHOUT 1992 AS SHE RESEARCHED THE BOOK MS SWASY WRITES EDWIN L ARTZT P&G CHAIRMAN SINCE JANUARY 1990 BULLIED THOSE WHO ASKED PERMISSION TO TALK TO ME SOME INSIDERS SAID THEY WERE TOLD THEY WOULD BE FIRED IF THEY MET WITH ME SEE RELATED LETTER LETTERS TO THE EDITOR IN DEFENSE OF PROCTER & GAMBLE WSJ OCT 5 1993 9309070062 YY93 MM10 9310050173 930831 ALLURING ISLAND NEW BERMUDA INSURERS ARE DRAINING BUSINESS FROM LONDON MARKET BUT THEIR CATASTROPHE LINES RUN SOME OF SAME RISKS THAT DEVASTATED LLOYD'S THE BOOM ON VICTORIA SQUARE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL HAMILTON BERMUDA WHEN ROBERT CLEMENTS COMES HERE TO VISIT HE HAS TROUBLE BELIEVING THE CHANGES BERMUDA ONCE RIDICULED AS THE THIRD WORLD OF INSURANCE A PLACE WHERE AN INSURANCE COMPANY WAS LITTLE MORE THAN A MAIL DROP HAS EMERGED AS A MAJOR CENTER FOR HIGHRISK COVERAGE IT'S ASTONISHING MR CLEMENTS SAYS THAT ASTONISHING TRANSFORMATION IS LARGELY DUE TO MR CLEMENTS HIMSELF FROM AN OFFICE IN MIDTOWN MANHATTAN THE PRESIDENT OF MARSH & MCLENNAN COS A BIG INSURANCE BROKER CREATED A SERIES OF BERMUDABASED INSURERS THEY NOW ARE LEADERS IN SELLING PROTECTION AGAINST MAJOR LOSSES SUCH AS ANOTHER BHOPAL DISASTER OR ANOTHER HURRICANE ANDREW AT FIRST MR CLEMENTS'S COMPANIES HAD BERMUDA ALMOST TO THEMSELVES EXCEPT FOR A MULTITUDE OF CAPTIVE INSURERS WHICH TAX LAWYERS DREAMED UP TO HELP BIG US CORPORATIONS INSURE THEMSELVES THEN BEGINNING THIS YEAR AMERICAN INTERNATIONAL GROUP INC CHUBB CORP USF&G CORP AND OTHERS SET UP INSURERS HERE COUPLED WITH THE MARSH & MCLENNAN CREATIONS THEY HAVE BROUGHT 4 BILLION OF CAPITAL TO AN ISLAND HALF THE SIZE OF NANTUCKET DRIVING THE ACTIVITY IN PART IS THE SOARING CORPORATE DEMAND FOR THE TYPE OF BIGTICKET CATASTROPHE INSURANCE SOLD HERE BUT PERHAPS THE MAIN IMPETUS IS THE TROUBLE AT LLOYD'S OF LONDON BEFORE DEVASTATING LOSSES PUSHED THE 306YEAROLD INSURANCE MARKET TO THE BRINK THE COVERAGE NOW BEING WRITTEN IN BERMUDA WOULD HAVE BEEN WRITTEN AT ONE LIME STREET LONDON BUT WITH LLOYD'S HOBBLED BERMUDA IS REPLACING A SIGNIFICANT PART OF THE LONDON MARKET SAYS HUGH ROSENBAUM OF TILLINGHAST AN ACTUARIAL CONSULTING UNIT OF TOWERS PERRIN THE COMPANIES FAVOR BERMUDA RATHER THAN NEW YORK OR HARTFORD BECAUSE OF ITS EASY REGULATIONS LOW TAXES AND SKILLED LABOR FORCE JUST YESTERDAY SWISS REINSURANCE CO OF ZURICH ANNOUNCED A PLAN TO SET UP HERE A NEW CATASTROPHE INSURANCE COMPANY PARTNER REINSURANCE CO IN ASSOCIATION WITH AFFILIATES OF JOHN HEAD & PARTNERS A US MERCHANT BANK AND WITH INSTITUTIONAL INVESTORS SEVERAL MORE INSURERS ARE SLATED TO OPEN HERE BY YEAR END BUT HOW MUCH LONGER BERMUDA CAN EAT AWAY AT LLOYD'S BUSINESS IS OPEN TO QUESTION DESPITE YEARS OF HORRENDOUS LOSSES LLOYD'S WITH 13 BILLION IN CAPITAL REMAINS A FORMIDABLE PRESENCE IN THE GLOBAL INSURANCE MARKET NO ONE CAN MATCH LLOYD'S IN INSURING CARGO SHIPS AND COMMERCIAL AIRLINES AND LLOYD'S IS WORKING HARD TO WIN BACK BUSINESS WE'RE NOT GOING TO PLAY SECOND FIDDLE TO ANYBODY SAYS LLOYD'S CHAIRMAN DAVID ROWLAND MOREOVER THE BERMUDA COMPANIES ARE WRITING SOME OF THE SAME KINDS OF INSURANCE THE EXCESS LIABILITY POLICIES THAT PROTECT COMPANIES AGAINST MULTIMILLIONDOLLAR LOSSES AND THE CATASTROPHE REINSURANCE THAT ALLOWS INSURERS TO LAY OFF ON OTHER INSURERS PART OF THEIR RISKS THAT GOT LLOYD'S INTO TROUBLE SO FAR THE BERMUDA COMPANIES HAVE DONE WELL PARTLY BECAUSE WEAK COMPETITION HAS ENABLED THEM TO CHARGE ADEQUATE PRICES BUT AS MORE COMPANIES ENTER THE MARKET PRICES COULD TUMBLE AND UNDERWRITING DISCIPLINE COULD ERODE THEN A SURGE OF BIG CLAIMS COULD HIT BERMUDA LIKE A HURRICANE INDEED TROUBLE AT JUST ONE OF THE COMPANIES COULD SHAKE THE ENTIRE MARKET ASKED WHAT KEEPS HIM AWAKE NIGHTS BERMUDA'S INSURANCE COMMISSIONER MALCOLM BUTTERFIELD REPLIES THE FAILURE OF ONE OF THESE COMPANIES MAURICE GREENBERG CHAIRMAN OF AMERICAN INTERNATIONAL GROUP TERMS A SHAKEOUT INEVITABLE THERE WILL BE WINNERS AND LOSERS IN BERMUDA LIKE EVERYWHERE SAYS MR GREENBERG WHOSE COMPANY RECENTLY STARTED TWO BERMUDA VENTURES THAT WILL TEST THE MARKET BUT MR CLEMENTS A STUBBORN 60YEAROLD CHICAGO NATIVE WHO OFTEN KAYAKS ON LONG ISLAND SOUND IS UNDAUNTED HE OBSERVES THAT THE FIRST BERMUDA INSURER ACE LTD IS IN ITS EIGHTH YEAR OF STRONG PROFITS THE WAY ACE WRITES INSURANCE HE ADDS MAKES IT LESS SUSCEPTIBLE TO THE SORTS OF CLAIMS THAT DEVASTATED LLOYD'S NOR IS HE WORRIED ABOUT COMPETITION DESPITE THE NEW ENTRANTS INTO THE BERMUDA MARKET HE BELIEVES THAT THE DEMAND WON'T BE SATISFIED FOR YEARS THERE STILL ISN'T ENOUGH INSURANCE CAPACITY HE ADDS UNLIKE BERMUDA'S 1175 CAPTIVE INSURERS WHICH AREN'T COMPANIES IN A TRADITIONAL SENSE AND GENERALLY LACK OFFICES FULLTIME STAFFS AND SALES CAPABILITIES THE NEW COMPANIES NOT ONLY HAVE OFFICES AND EMPLOYEES BUT ARE HAVING TROUBLE FINDING ENOUGH OF EITHER WANTADS FOR UNDERWRITERS APPEAR IN BERMUDA PAPERS OFFICE SPACE ON VICTORIA SQUARE THE ISLAND'S INSURANCE HUB IS SCARCE US RISK MANAGERS WHO USED TO GO TO LONDON FOR THEIR MOST DIFFICULT INSURANCE NEEDS NOW GATHER IN THE BEACHFRONT HOTELS WHERE JUST A SCOOTER RIDE AWAY THEY CAN TRANSFER BILLIONS OF DOLLARS IN RISK WHAT STARTED BERMUDA'S BOOM WAS THE LIABILITY CRISIS OF THE EARLY 1980S HUGE LOSSES MOST DRAMATICALLY THE UNPRECEDENTED JURY AWARDS FOR VICTIMS OF ASBESTOSRELATED AILMENTS AND DISASTERS SUCH AS THE GAS LEAK THAT KILLED THOUSANDS IN BHOPAL INDIAMADE INSURERS AFRAID TO WRITE LIABILITY POLICIES THEY ALSO WERE RATTLED BY BIG JUDGMENTS IN US COURTS AGAINST CORPORATE DIRECTORS AND OFFICERS AS LLOYD'S AND US INSURANCE COMPANIES QUIT THE MARKET PREMIUMS SOARED CORPORATIONS STUNG BY HUGE RATE INCREASES DROPPED COVERAGE AND RISKED BANKRUPTCY IF THEY GOT HIT BY A MAJOR CLAIM MANY OF THOSE CORPORATIONS WERE CLIENTS OF MR CLEMENTS HE DECIDED THAT IF THE INSURERS WOULDN'T WRITE THE BUSINESS MARSH & MCLENNAN A BROKERAGE FIRM THAT HELPS COMPANIES BUY INSURANCE POLICIES SHOULD START A COMPANY THAT WOULD I THOUGHT WE SHOULD RETHINK OUR RESPONSIBILITIES AS A BROKER FROM SEARCHING OUT CAPACITY TO CREATING IT HE SAYS ON A FLIGHT FROM PARIS TO NEW YORK MR CLEMENTS SKETCHED OUT THE IDEA FOR ACE AT ITS HEART WAS A NEW FORM OF INSURANCE POLICY DESIGNED TO PROTECT THE INSURER FROM THE COSTLY LEGAL JUDGMENTS THAT BEDEVILED LLOYD'S AND OTHER INSURERS UNDER A TRADITIONAL LIABILITY POLICY AN INSURER COULD BE FORCED TO PAY A CLAIM LONG AFTER A CUSTOMER HAD CANCELED COVERAGE THAT IS HAPPENING NOW ON A POLICY CONTINENTAL CASUALTY CO WROTE FOR FIBREBOARD CORP WHICH USED TO MAKE ASBESTOS THE POLICY WAS IN FORCE ONLY 22 MONTHS BEGINNING IN 1957 BUT A COURT HELD THAT CONTINENTAL CASUALTY A UNIT OF CNA FINANCIAL CORP WAS LIABLE FOR INJURIES CAUSED TO ANYONE WHO HAD INHALED ASBESTOS FIBERS DURING THE COVERAGE PERIOD AS A RESULT OF A PRELIMINARY AGREEMENT REACHED YESTERDAY TO SETTLE ASBESTOS CLAIMS CNA HAS INCREASED TO 2 BILLION ITS RESERVE TO COVER POSSIBLE COSTS LLOYD'S SUSTAINED HUGE LOSSES UNDER SIMILAR CIRCUMSTANCES ACE CAN NEVER FALL INTO A SIMILAR PIT MR CLEMENTS CONTENDS BECAUSE THE ACE INSURANCE POLICY SPECIFICALLY OBLIGATES IT TO PAY ONLY CLAIMS TO COMPANIES THAT MAINTAIN THEIR COVERAGE IF A COMPANY CANCELS IT GIVES UP THE RIGHT TO FILE A CLAIM TO MR CLEMENTS THE ACE INSURANCE POLICY SEEMED AN ELEGANT SOLUTION BUT HE HAD TROUBLE CONVINCING INVESTORS LLOYD'S LIKE THE REST OF THE INDUSTRY TURNED HIM DOWN IT DISMISSED ACE AS A SELFIMMOLATION SCHEME BECAUSE IT BELIEVED THE ACE POLICY LEFT THE INSURER VULNERABLE DESPITE ITS RESTRICTIONS BUT AIDED BY JP MORGAN & CO MR CLEMENTS WON THE BACKING OF INTERNATIONAL BUSINESS MACHINES CORP DOW CHEMICAL CO AND OTHER COMPANIES THAT NEEDED THE COVERAGE CORPORATIONS HAVE AGGRESSIVELY FOUGHT THE SORT OF RESTRICTION EMBODIED IN THE ACE POLICIES BUT FOR CATASTROPHIC COVERAGE THEY TOLERATE IT BECAUSE THEY BELIEVE THAT IT PROBABLY WON'T COME INTO PLAY SAYS CHERI HAWKINS DIRECTOR OF INSURANCE FOR WEYERHAEUSER CO A CATASTROPHE IS SOMETHING YOU WILL BE MUCH MORE LIKELY TO KNOW ABOUT WHEN IT HAPPENS SHE SAYS FOR EXAMPLE A LEAKY UNDERGROUND TANK AND THE POLLUTION IT CAUSES MIGHTN'T BE DETECTED FOR YEARS BUT A CATASTROPHIC EVENT SUCH AS BHOPAL IS KNOWN ALMOST IMMEDIATELY WE HEAR ABOUT OUR CLAIMS ON CNN ACE CHAIRMAN WALTER SCOTT SAYS A YEAR LATER MR CLEMENTS FORMED EXEL WHICH ALSO WRITES EXCESSLIABILITY INSURANCE AND INSURES CORPORATE OFFICIALS BUT ONLY AFTER THE FIRST 25 MILLION OF LOSSES AT THAT POINT IT PAYS AS MUCH AS 100 MILLION ACE IN CONTRAST KICKS IN ONLY AFTER DAMAGES REACH 100 MILLION AND WILL PAY AS MUCH AS 200 MILLION AGAIN THE ONLY WILLING INVESTORS IN EXEL INITIALLY WERE CORPORATIONS NEEDING COVERAGE THOUGH SHARES OF BOTH COMPANIES NOW ARE LISTED ON THE NEW YORK STOCK EXCHANGE BUT RECENTLY THE INDUSTRY HAS OVERCOME ITS RESERVATIONS ABOUT THE WAY ACE AND EXEL DO BUSINESS EARLIER THIS YEAR ENTICED BY RISING PRICES FOR EXEL'S LINES AMERICAN INTERNATIONAL GROUP STARTED ITS OWN EXCESSLIABILITY INSURER IN BERMUDA CHUBB HAS ALSO STARTED A COMPANY THAT MIGHT COMPETE IN THAT MARKET OTHER NEWCOMERS TO BERMUDA THIS YEAR ARE CATASTROPHE REINSURERS WHICH COVER INSURANCE COMPANIES FROM MAJOR LOSSES ON HURRICANES EARTHQUAKES AND OTHER DISASTERS LLOYD'S ONCE DOMINATED CATASTROPHE REINSURANCE BUT IN RECENT YEARS ITS MARKET SHARE HAS SHRUNK CONSIDERABLY ALTHOUGH LLOYD'S IS WRITING LESS REINSURANCE THE DEMAND FOR THE COVERAGE BECAME EVEN STRONGER SINCE HURRICANE ANDREW HIT FLORIDA LAST YEAR FOLLOWING THE HURRICANE THE PRICE OF CATASTROPHE REINSURANCE SHOT UP 40 AND MR CLEMENTS WAS THE FIRST TO GRAB THE OPPORTUNITY LAST NOVEMBER THREE MONTHS AFTER THE STORM MARSH & MCLENNAN AND JP MORGAN FORMED MIDOCEAN LTD THIS TIME INVESTORS WERE INTERESTED TEXAS INVESTOR RICHARD RAINWATER HAWAII'S BISHOP ESTATE AND INSURANCE EXPERT JOHN BYRNE PUT UP MONEY MARSH AND JP MORGAN EACH INVESTED ABOUT 30 MILLION OTHER COMPANIES QUICKLY FOLLOWED GENERAL RE CORP AND USF&G WHICH IS BACKED BY GENERAL ELECTRIC CO'S PENSION FUND ALSO FORMED REINSURERS SO DID AIG THE NEW REINSURERS AS WELL AS THE EXCESSLIABILITY COMPANIES MIGHT HAVE BEEN SET UP ANYWHERE BUT MR CLEMENTS AND THE OTHERS LIKE THIS ISLAND SITUATED 600 MILES EAST OF NORTH CAROLINA LARGELY BECAUSE OF ITS EASY REGULATION IN THE US INSURERS HAVE TO SEEK LICENSES IN EVERY STATE WHERE THEY OPERATE AND GET APPROVAL FOR THEIR POLICIES THIS DIFFUSE REGULATORY SYSTEM AIMED AT PROTECTING POLICYHOLDERS CREATES WHAT INSURANCE PEOPLE DECRY AS THE 50STATE PROBLEM GETTING THROUGH THE STATE BUREAUCRACIES TAKES A STARTUP COMPANY YEARS BUT IN BERMUDA A COMPANY CAN GET GOING QUICKLY BECAUSE OFFICIALS MAINLY CARE ABOUT ITS FINANCIAL HEALTH AND DON'T SECONDGUESS BUSINESS MATTERS IF WE HAD TO GO AROUND TO ALL 50 STATES WE PROBABLY WOULDN'T BE IN BUSINESS YET MR CLEMENTS SAYS THE TAX LURE FOR REINSURERS BERMUDA'S MAIN APPEAL IS ABSENCE OF INCOME TAXES WHERE INVESTED PREMIUMS CAN ACCUMULATE TAXFREE AN INSURER CAN BUILD UP A FINANCIAL CUSHION AGAINST LARGE CLAIMS AND THUS GROW MORE QUICKLY IN FACT GENEROUS RETURNS ARE ALSO CRITICAL FOR INVESTORS IN CATASTROPHE REINSURERS WHICH ARE ULTIMATELY AT THE MERCY OF THE WEATHER YOU NEED TO SHOW STRONG RETURNS BECAUSE YOUR INVESTORS ARE REALLY ON THE HOOK MR CLEMENTS SAYS CAN THE BERMUDA COMPANIES SUCCEED WHERE LLOYD'S FAILED WHEN THE LIABILITY COMPANIES AND REINSURERS ALIKE ARE VULNERABLE TO THE SAME DEVASTATING FORCES TO A LARGE DEGREE LLOYD'S WAS A VICTIM NOT ONLY OF THE SURPRISING AWARDS BY US JURIES BUT ALSO OF ITS OWN SUCCESS DURING THE 1980S ECONOMIC BOOM EVERONE FROM PROFESSIONAL ATHLETES TO UNSOPHISTICATED GRANDMOTHERS POURED MONEY INTO THE MARKET IN SEARCH OF EASY MONEY AND PRESTIGE LLOYD'S ENDED UP WITH MORE CAPITAL THAN IT COULD EFFECTIVELY DEPLOY AND AS A RESULT INSURANCE PREMIUMS FELL UNDERWRITING BECAME SLOPPY AND LLOYD'S SYNDICATES DIDN'T CHARGE ENOUGH TO COVER THEIR RISKS ALTHOUGH DUMB MONEY COULD SPOIL THE PARTY IN BERMUDA TOO NO SIGNS OF TROUBLE HAVE CROPPED UP SO FAR BUT WALL STREET IS BECOMING CONCERNED ABOUT COMPETITION WHEN AIG UNVEILED ITS BERMUDA EXCESSLIABILITY INSURER SALOMON BROTHERS ANALYST MICHAEL FRINQUELLI PULLED HIS BUY RECOMMENDATION ON EXEL STOCK HE CALLED AIG'S NEW COMPANY SELIC HOLDINGS LTD A VERY SIGNIFICANT COMPETITOR THAT COULD HURT EXEL'S GROWTH MR CLEMENTS ISN'T WORRIED RATHER THAN SLOWING DOWN THEIR ACTIVITY MARSH & MCLENNAN AND JP MORGAN ARE SEEKING TO RAISE 500 MILLION TO INVEST IN INSURERS INCLUDING STARTUPS THE TWO COMPANIES HAVE AGREED TO INVEST 40 MILLION APIECE SEE RELATED LETTER LETTERS TO THE EDITOR RISK CAPACITY BERMUDA STYLE WSJ OCT 4 1993 9308310025 YY93 MM10 9310050169 930813 REVIEW & OUTLOOK EDITORIAL TALE OF TOO FAT CITIES THEY KEEP WANTING TO BE KNOWN AS NEW DEMOCRATS BUT HOW CAN YOU BELIEVE WHEN THE AGENDA SO OFTEN INCLUDES THE MISSTEPS OF THEIR PHILOSOPHICAL FORERUNNERS EARLIER THIS WEEK WE REPORTED ON LABOR SECRETARY REICH'S HOPE TO RAISE AND INDEX THE MINIMUM WAGE ONE MAY ADD TO THIS INSTINCT FOR THE RETRO THE IDEA OF POURING MONEY INTO THE CITIES HENRY CISNEROS THE NEW SUPERINTENDENT OF THAT SHRINE TO THE GREAT SOCIETY KNOWN AS HUD TOLD THE CONFERENCE OF MAYORS AWHILE AGO THAT HE WAS SORRY TO COME BEFORE YOU AND SAY THERE AREN'T GOING TO BE MASSIVE NEW PROGRAMS BUT HE'S DOING HIS BEST EARLY ON SECRETARY CISNEROS DECIDED THAT HE WANTED THE FEDERAL GOVERNMENT BACK IN THE THICK OF CONSTRUCTING PUBLIC HOUSING NEW FEDERAL CONSTRUCTION WOULD CONFIRM A CHANGE IN COURSE THAT WAS FIRST SIGNALED DURING THE BROKERING OF THE SOCALLED DEFICITREDUCTION PACKAGE FOR THE CURRENT FISCAL YEAR CLINTON BUDGET OFFICIALS ORIGINALLY PLANNED TO SQUEEZE 30 OR 126 MILLION FROM THE PUBLICHOUSING CONSTRUCTION FUNDS CONGRESS HAD IMPOSED ON THE BUSH ADMINISTRATION AND TO TRANSFER THE REMAINDER INTO A JACK KEMPERA PROGRAM KNOWN AS HOME WHICH GIVES CITIES THE ALTERNATIVE OPTION TO REPAIR BUILDINGS OR JUST GIVE FUNDS TO THE POOR TO FIND THEIR OWN ACCOMMODATIONS OF COURSE THIS RAISED THE HACKLES OF THE PUBLICHOUSING AUTHORITIES SO MR CISNEROS WENT BACK TO THE NEOLIBERALS AT THE OFFICE OF MANAGEMENT AND BUDGET AND GOT MONEY RESTORED TO BRICKS AND MORTAR NOW HUD HAS PUT OUT NOTICES OF FUNDING AVAILABILITY AND IS OTHERWISE TRYING TO CLEAR THE PIPELINE HE AND HUD HAVE COOKED UP A UNION PENSIONFUND INVESTMENT SCHEME FOR THE CITIES THAT SURPRISE WOULD BE SECURED AND PROTECTED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND TWO GOVERNMENT AGENCIES ACCORDING TO A WIRE REPORT AS ONE HAPPY HOUSINGAGENCY LOBBYIST TOLD US WE HAVE A HARD TIME KEEPING UP WITH ALL THEY'RE TRYING TO DO WE WOULD LIKE TO THINK THIS WON'T MEAN MORE SQUARE FOOTAGE CONTROLLED BY PUSHERS THIEVES AND VANDALS AND THAT THE POLITICAL HACKS IN CHARGE OF SOME HOUSING AUTHORITIES WON'T CONTINUE TO LET 30 OR MORE OF THEIR UNITS SIT IDLE AS THEY SQUANDER OR OTHERWISE DISPOSE OF THE MILLIONS OF DOLLARS INTENDED TO MAINTAIN DECENT LIVING CONDITIONS FOR THE 14 MILLION PEOPLE WHO MUST SURVIVE IN THESE COMMUNITYDESTROYING QUARTERS IF WE LEARNED NOTHING ELSE FROM THE LAST 25 YEARS OF SOCIAL POLICY WE OUGHT TO HAVE GRASPED THE SCOPE OF THIS DISASTER INDEED IN PONDERING THE WHOLE 29 BILLION THAT IS TO BE ENTRUSTED TO HUD IN THE NEW CLINTON BUDGET UP MORE THAN 10 INDEPENDENT LEGISLATORS MIGHT CARE TO CHECK OUT A 45PAGE STUDY FROM THE CATO INSTITUTE THE MYTH OF AMERICA'S UNDERFUNDED CITIES THEY WOULD FIND THAT LUSTY CHEERS FROM THE NATION'S MUSTY MAYORS FOR THE ADMINISTRATION'S CHANGE IN POLICY DIRECTION DON'T BODE WELL FOR ANYBODY BESIDES PUBLICEMPLOYEE UNIONS POVERTY WARLORDS GRANTS PROCESSORS AND THE POLITICIANS WHO ARE SPRAWLED ATOP THIS PYRAMID OF CYNICISM CATO'S STEPHEN MOORE AND DEAN STANSEL COMPARE HIGH AND LOWGROWTH CITIES OF THE LAST GENERATION AND CONCLUDE FROM A CONSIDERABLE VOLUME OF EVIDENCE THAT THOSE KEEPING TAXES AND SPENDING UNDER CONTROL GENERALLY GREW AND PROSPERED WHILE THOSE THAT DIDN'T DETERIORATED THE STATISTLIBERAL RESPONSE IS USUALLY THAT A BIG PUBLIC SECTOR IS THE CONSEQUENCE OF URBAN DECAY AND NOT ITS CAUSE CATO'S DYNAMIC ANALYSIS INDICATES THE OPPOSITE GROWTH AND THAT MEANS OPPORTUNITY AT THE BOTTOM RUNGS OF THE ECONOMIC LADDER IS ASSOCIATED WITH FRUGAL CITY HALLS IN FACT THE REPORT IS NOTEWORTHY FOR ADDRESSING MANY ALTERNATIVE VARIABLES THAT MIGHT EXPLAIN THE FATE OF CITIES IT CITES FOR INSTANCE PAIRS OF FAT AND SLIMMER MUNICIPALITIES IN THE SAME STATE LOUISVILLE VS LEXINGTON DENVER VS COLORADO SPRINGS ARLINGTON VS FORT WORTH THAT SUPPORT THE ARGUMENT FINALLY THE CATO STUDY CHALLENGES THE NOTION THAT US TAXPAYERS SCRIMPED ON URBAN SUBSIDIES IN THE 1980S THESE MONIES TOOK ON NEW FORMS BUT THE PERCAPITA AMOUNT COMING IN TO CITIES AND THEIR RESIDENTS DIDN'T DIMINISH MOREOVER UNDER GEORGE BUSH IT EXPLODED WHERE ARE THE TRULY NEW DEMOCRATS WHO UNDERSTAND THIS AND HAVE EVEN WRITTEN ABOUT THE FALSE HOPE OF POURING MONEY DOWN THE SAME CHUTE THEY AND IN REALITY MOST AMERICANS WANT FOREMOST TO DO RIGHT BY THOSE MIRED IN THE DESPAIR OF THE SICK CITIES WE'VE HEARD A LOT OF TALK ABOUT EMPOWERMENT LATELY BUT ONE HAS TO WONDER JUST WHO THESE POLICIES ARE MEANT TO EMPOWER SEE RELATED LETTER LETTERS TO THE EDITOR DECENT SAFE HOUSING SHOULDN'T BE A PRIVILEGE WSJ SEPT 27 1993 9308130068 9309270112 YY93 MM09 YY93 MM10 9310050168 930827 THAT TRADE OBSTACLE THE SEC BY WILLIAM C FREUND WHEN THE GERMAN AUTO GIANT DAIMLERBENZ RECENTLY AGREED TO ADHERE TO NEARLY ALL US ACCOUNTING PRACTICES THUS ALLOWING IT TO BECOME THE FIRST GERMAN COMPANY LISTED ON THE NEW YORK STOCK EXCHANGE THE CHANGES WERE HAILED AS A SIGN THAT FOREIGN FIRMS WILL BEGIN OPERATING IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION REQUIREMENTS BUT DAIMLERBENZ GREATLY IN NEED OF CAPITAL WAS A SPECIAL CASE FEW OTHER FOREIGN FIRMS ARE EXPECTED TO FOLLOW ITS LEAD INDEED IF THE SEC CONTINUES TO INSIST THAT FOREIGN FIRMS ABIDE BY AMERICA'S ANACHRONISTIC ACCOUNTING STANDARDS IT WILL STRANGLE US MARKETS AND DO IRREVERSIBLE HARM TO THE US AS THE WORLD'S DOMINANT FINANCIAL CENTER AT ISSUE ARE SEC RULES THAT DRIVE THE TRADING OF WORLDCLASS COMPANIES INTO MORE COSTLY LESS LIQUID FOREIGN MARKETS WHAT MAKES THE ISSUE URGENT IS THAT CAPITAL MARKETS CAN BE AS IMPORTANT AS PHYSICAL EXPORTS AND IMPORTS IN HELPING REDUCE THE US TRADE DEFICIT MOREOVER NEW RESEARCH SHOWS THAT THE OBSTRUCTIONIST SEC RULES SERVE NO USEFUL PURPOSE THE GREATEST ROADBLOCK TO TRANSNATIONAL LISTINGS ON THE NEW YORK STOCK EXCHANGE IS THE SEC REQUIREMENT THAT COMPANIES RECONCILE THEIR FINANCIAL STATEMENTS TO US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES GAAP STANDARDS THERE IS AN INTELLECTUAL ARROGANCE IN MAINTAINING THAT GAAP RULES AS ENFORCED BY THE SEC ARE THE BEST IN THE WORLD AND MUST BE FOLLOWED IN US MARKETS FOR EXAMPLE THE SEC FINDS UNACCEPTABLE GERMAN RULES THAT ALLOW COMPANIES TO PLOW BACK EARNINGS INTO SOCALLED BLIND RESERVES GERMAN COMPANIES ARGUE THAT THEIR INVESTORS HAVE BENEFITED FROM ACCOUNTING PRACTICES THAT AVERAGE OUT EARNINGS OVER YEARS MODERATING EARNINGS VOLATILITY AND FOCUSING MANAGEMENT ATTENTION ON LONGERRUN EARNINGS PERFORMANCE THE SEC'S CONTENTION THAT IT MUST SAFEGUARD US INVESTORS FROM INADEQUATE DISCLOSURES BY FOREIGN FIRMS IS A MIRAGE IN THE MODERN WORLD OF LOWCOST HIGHSPEED COMMUNICATIONS FORMER SEC COMMISSIONER PHILIP R LOCHNER JR NOTED ON THIS PAGE LAST NOVEMBER THAT MANY SEC RULES ARE ARBITRARY AND WERE WRITTEN IN AN ERA WHEN US SECURITIES MARKETS COULD EXIST IN SPLENDID ISOLATION HE CONTINUES THE FACT IS THAT US CITIZENS BUY FOREIGN STOCKS ANYWAY THEY JUST DO SO ON FOREIGN EXCHANGES AND AT GREATER COST THAN IF THOSE FOREIGN SECURITIES COULD BE BOUGHT HERE EVEN MORE FUNDAMENTAL IS THE QUESTION WHETHER SEC DISCLOSURE RULES MAKE FOR A MORE EFFICIENT MARKET IN THE US THAN EXISTS IN LEADING FOREIGN STOCK EXCHANGES NOT GOVERNED BY THESE RULES A NUMBER OF SCHOLARS HAVE EXAMINED THIS ISSUE IN A VARIETY OF WAYS MOST RECENTLY PROFS WILLIAM BAUMOL OF NEW YORK UNIVERSITY AND BURTON MALKIEL OF PRINCETON EVALUATED THE EFFICIENCY OF EUROPEAN AND PACIFIC RIM STOCK EXCHANGES BY TESTING WHETHER PROFESSIONAL INVESTORS HAD ANY ADVANTAGE OVER BROAD STOCK MARKET AVERAGES IF STOCK PRICES REFLECTED MOST EVERYTHING KNOWN ABOUT A COMPANY THAT IS IF FOREIGN DISCLOSURE OF ACCOUNTING AND OTHER INFORMATION WAS ADEQUATE THE UNINFORMED INVESTORS WOULD DO AS WELL AS THE EXPERTS BETWEEN 1982 AND 1991 PROFESSIONALLY MANAGED PORTFOLIOS DID NOT OUTPERFORM BROAD STOCK MARKET AVERAGES ON A PERSISTENT BASIS THERE ARE NOW ABOUT A DOZEN STUDIES CONFIRMING THAT THE RISKADJUSTED PERFORMANCE OF PROFESSIONALS MATCHES THE MARKET AVERAGES ATTESTING TO THE EFFICIENCY OF EUROPEAN AND PACIFIC RIM MARKETS MESSRS BAUMOL AND MALKIEL CONCLUDE THAT TAKEN AS A WHOLE THE EVIDENCE SUPPORTS THE VIEW THAT MARKETS FOR THE SHARES OF NONUS COMPANIES APPEAR TO BE AS EFFICIENT AS THOSE FOR US FIRMS THUS INFORMED INVESTORS CAN EXPECT THAT THE SHARES OF NONUS COMPANIES ARE REASONABLY PRICED IN RELATION TO THOSE OF OTHER FIRMS IF THIS IS THE CASE THERE IS GOOD REASON TO DOUBT THAT INVESTORS WOULD BENEFIT AT ALL FROM ANY ADDITIONAL DISCLOSURE SEC RULES REQUIRING FOREIGN FIRMS TO RECONCILE THEIR DOMESTIC FINANCIAL REPORTS WITH US GAAP STANDARDS MAY ACTUALLY BE COUNTERPRODUCTIVE THEY MAY REDUCE INVESTOR MASTERY OF THE PERTINENT FACTS AND LULL INVESTORS INTO A FALSE SENSE OF CONFIDENCE INDEED STUDIES HAVE FOUND THAT HOME COUNTRY ACCOUNTING STANDARDS PRACTICED IN OTHER COUNTRIES HAVE IN MANY INSTANCES PROVIDED MORE RATHER THAN LESS INFORMATION MECHANICALLY RECONCILING FOREIGN ACCOUNTING DATA TO US GAAP STANDARDS WILL OFTEN SUGGEST A COMPARABILITY THAT DOES NOT EXIST UNDER THE GUIDANCE OF THE INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE EFFORTS ARE UNDER WAY TO DEVELOP GREATER INTERNATIONAL ACCOUNTING UNIFORMITY BUT EVEN MORE IMPORTANT TOWARD THIS END IS THE PRESSURE COMING FROM INCREASINGLY POWERFUL INSTITUTIONAL INVESTORS THESE INVESTORS HAVE BEEN MORE EFFECTIVE THAN THE SEC IN PRYING LOOSE MEANINGFUL FINANCIAL DATA FROM GLOBAL COMPANIES THE FINAL ARGUMENT AGAINST SEC INTRANSIGENCE IN RECOGNIZING FOREIGN FINANCIAL REPORTING IS THAT THE PURPORTED PROTECTION OF AMERICAN INVESTORS IS A VICTORY OF THEORY OVER PRACTICE SINCE THE SEC'S REGULATORY ARM DOES NOT REACH BEYOND NATIONAL BORDERS US INVESTORS TRADING ABROAD ARE DENIED ALL SEC REGULATORY SAFEGUARDS THEY ARE ALSO DENIED THE LOWER TRANSACTIONS COSTS AND GREATER LIQUIDITY GENERALLY AVAILABLE IN US MARKETS OVERALL THE US MARKET IS PREVENTED FROM COMPETING IN A SERVICE WHERE US COMPARATIVE ADVANTAGE IS UNDISPUTED THE SEC HAS SHOWN LITTLE GIVE ON THE ISSUE OF FOREIGN LISTINGS SO FAR INDEED WHEN DAIMLERBENZ AGREED TO ADHERE TO US ACCOUNTING STANDARDS THE SEC'S CHIEF ECONOMIST DECLARED THAT THE BRAVE MOVE BY DAIMLERBENZ MAKES IT MORE LIKELY THAT FAIR PLAY WILL BE THE RULE OF THIS GROWING WORLD GAME BUT OTHER GIANT INTERNATIONAL FIRMS ARE UNLIKELY TO USE DAIMLER AS A MODEL ONLY WHERE THEIR NEED TO RAISE CAPITAL IN THE US IS VERY INTENSE ARE THEY LIKELY TO SUBMIT TO THE SEC'S REGULATORY JURISDICTION THE BIG BOARD HAS PROPOSED A NUMBER OF SAFEGUARDS TO ALERT THE INVESTING PUBLIC TO ANY DIFFERENCES IN ACCOUNTING PROCEDURES UNDER ITS PROPOSALS THE SOLE EXCEPTION TO THE GAAP REPORTING RULES WOULD BE ABOUT 200 WORLDCLASS FOREIGN ISSUERS COMPANIES WITH REVENUES OF AT LEAST 5 BILLION FOR THE MOST RECENT FISCAL YEAR A MARKET CAPITALIZATION IN EXCESS OF 2 BILLION AND AN AVERAGE WEEKLY TRADING VOLUME OUTSIDE THE US OF AT LEAST 1 MILLION OR 200000 SHARES FOR THESE LARGE HIGHLY VISIBLE COMPANIES THE SEC WOULD ACCEPT INDEPENDENTLY AUDITED HOMECOUNTRY FINANCIAL STATEMENTS AS LONG AS THESE INCLUDE A WRITTEN EXPLANATION OF THE MATERIAL DIFFERENCES BETWEEN HOMECOUNTRY ACCOUNTING PRACTICES AND US GAAP TO PROTECT US INVESTORS FURTHER THE BIG BOARD HAS SUGGESTED THAT TRANSACTIONS IN WORLDCLASS FOREIGNCOMPANY SHARES BE LISTED IN A SEPARATE TABLE OR AT LEAST IDENTIFIED WITH AN ASTERISK OR OTHER APPROPRIATE SYMBOL TO ALERT INVESTORS TO DIFFERENT DISCLOSURE STANDARDS ALL OF THESE ARE GOOD SUGGESTIONS SEC RULES NEED REGULAR REVIEW TO DETERMINE THEIR IMPACT ON THE EFFICIENCY AND COMPETITIVENESS OF US SECURITIES MARKETS SUCH A REVIEW IS CURRENTLY UNDER WAY IN THE SEC'S SOCALLED MARKET 2000 STUDY THE ISSUE OF FOREIGN LISTINGS NEEDS TO BE RESOLVED THE SOONER THE BETTER MR FREUND CHIEF ECONOMIST OF THE NEW YORK STOCK EXCHANGE 196885 IS PROFESSOR OF ECONOMICS AND DIRECTOR OF THE CENTER FOR THE STUDY OF EQUITY MARKETS AT PACE UNIVERSITY IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR THE SEC'S OPEN DOOR POLICY WSJ SEPT 23 1993 9308270008 9309230104 YY93 MM09 YY93 MM10 9310050166 930809 ANOTHER QUESTIONABLE CLINTON CHOICE BY FRANK J GAFFNEY JR ACCORDING TO THE TRADE PUBLICATION DEFENSE DAILY PRESIDENT CLINTON IS EAGER TO AVOID A REPEAT OF THE LANI GUINIER EPISODE WITH REGARD TO ANOTHER CANDIDATE FOR HIGH OFFICE MORTON HALPERIN ON MARCH 31 THE WHITE HOUSE ANNOUNCED MR CLINTON'S INTENTION TO NOMINATE MR HALPERIN TO A TOP DEFENSE DEPARTMENT POSITION CREATED EXPRESSLY FOR HIM ASSISTANT SECRETARY FOR DEMOCRACY AND HUMAN RIGHTS BUT MR HALPERIN HAS BEEN ASSOCIATED FOR DECADES WITH MANY OF THE RADICAL LEFT'S AGENDAS FOR NATIONAL SECURITY AND WITH ITS ORGANIZATIONAL MOUTHPIECES NOTABLY THE INSTITUTE FOR POLICY STUDIES AND THE AMERICAN CIVIL LIBERTIES UNION IN MORE THAN 20 YEARS OF WRITING AND PUBLIC COMMENTARY MR HALPERIN HAS CONSISTENTLY SUPPORTED THE KINDS OF IDEAS THAT JEANE KIRKPATRICK ONCE TYPED AS BLAME AMERICA FIRST THESE IDEAS ARE TO RESPONSIBLE NATIONAL SECURITY POLICY WHAT LANI GUINIER'S IDEAS WERE TO MAINSTREAM THINKING ON CIVIL RIGHTS MR HALPERIN'S CAREER LIKE THOSE OF MANY OTHERS WAS RADICALIZED BY THE VIETNAM WAR FROM JULY 1966 TO JANUARY 1969 HE SERVED AS DEPUTY ASSISTANT SECRETARY OF DEFENSE AND THEREAFTER AS A SENIOR OFFICIAL AT THE NATIONAL SECURITY COUNCIL ALONG THE WAY HE CAME TO OPPOSE THE VIETNAM WAR VEHEMENTLY HE WAS CLOSE TO RAND ANALYST DANIEL ELLSBERG WHOM HE EVENTUALLY HELPED TO GAIN ACCESS TO THE PENTAGON PAPERS HENRY KISSINGER SUSPECTED MR HALPERIN OF LEAKING SENSITIVE INFORMATION TO THE PRESS AND EVEN HAD HIS PHONES TAPPED THIS PERCEIVED ABUSE OF GOVERNMENTAL AUTHORITY WAS THE SUBJECT OF A SUCCESSFUL LAWSUIT AGAINST THE GOVERNMENT IT ALSO APPARENTLY HAD A PROFOUND IMPACT ON MR HALPERIN'S WORLDVIEW TO READ OVER SOME OF MR HALPERIN'S WRITINGS IS TO WATCH THAT WORLDVIEW AT WORK AND TO BE REMINDED WHAT INCALCULABLE HARM SOME OF THE IDEAS OF POLITICAL LEFTWINGERS COULD HAVE DONE TO THE NATIONAL INTEREST HAD THEY BEEN IMPLEMENTED DURING THE COLD WAR LIKE MANY THINKERS ON THE DEFENSE LEFT AND EVEN MANY SOCALLED BELIEVERS IN REALPOLITIK MR HALPERIN FREQUENTLY CHOSE TO DIMINISH THE THREAT THAT THE SOVIET UNION POSED TO THE WORLD THUS HIS WORK FOCUSED ON PORTRAYING A DEFENSIVE SOVIET UNION SUCH IDEAS RAN COUNTER TO WHAT WAS WIDELY BELIEVED AT THE TIME AND TO WHAT WE NOW KNOW TO BE THE TRUTH RECENT REVELATIONS FROM EAST GERMANY'S ARCHIVES FOR EXAMPLE HAVE SHOWN THAT MOSCOW'S FORCES WERE CONSISTENTLY TRAINED EQUIPPED AND DEPLOYED FOR OFFENSIVE OPERATIONS AGAINST THE WEST YET WRITING IN THE 1971 BOOK DEFENSE STRATEGIES FOR THE SEVENTIES MR HALPERIN SAID THAT THE SOVIET UNION APPARENTLY NEVER EVEN CONTEMPLATED THE OVERT USE OF MILITARY FORCE AGAINST WESTERN EUROPE THE SOVIET POSTURE TOWARD WESTERN EUROPE HAS BEEN AND CONTINUES TO BE A DEFENSIVE AND DETERRENT ONE AS FOR THE ISSUE OF THE SOVIET UNION'S WELLDOCUMENTED IMPERIAL TENDENCIES MR HALPERIN FORGAVE AND DEFENDED THEM IN A JUNE 9 1979 ISSUE OF THE NATION MAGAZINE HE WROTE THAT EVERY ACTION WHICH THE SOVIET UNION AND CUBA HAVE TAKEN IN AFRICA HAS BEEN CONSISTENT WITH THE PRINCIPLES OF INTERNATIONAL LAW THE CUBANS HAVE COME IN ONLY WHEN INVITED BY A GOVERNMENT AND HAVE REMAINED ONLY AT THEIR REQUEST SOVIET CONDUCT REFLECTS SIMPLY A DIFFERENT SOVIET ESTIMATE OF WHAT SHOULD HAPPEN IN THE AFRICAN CONTINENT AND A GENUINE CONFLICT BETWEEN THE UNITED STATES AND THE SOVIET UNION AS WE LOOK BACK ON THE COLD WAR WE SEE THAT AMERICA'S INTERNATIONAL COMMITMENTS WERE KEY TO THE SUCCESSFUL POLICY OF CONTAINMENT YET MR HALPERIN CONSISTENTLY SOUGHT TO UNDERMINE THOSE COMMITMENTS WRITING IN THE SAME ARTICLE IN THE NATION HE FAULTED THE CARTER ADMINISTRATION FOR NOT RECONSIDERING US SECURITY COMMITMENTS HE LAMENTED THAT MR CARTER'S DECISION TO WITHDRAW US GROUND FORCES BUT NOT SEA AND AIR UNITS PREVENTED A CAREFUL CONSIDERATION OF WHETHER THE UNITED STATES WISHED TO REMAIN COMMITTED TO THE SECURITY OF KOREA OMINOUSLY HE ADDED EVEN IF A COMMITMENT IS MAINTAINED A REQUEST FOR AMERICAN MILITARY INTERVENTION SHOULD NOT BE ROUTINELY HONORED NORTH KOREA'S EMERGING THREAT AS A NUCLEAR POWER UNDERSCORES THE STRATEGIC RISKS ASSOCIATED WITH SUCH A RECOMMENDATION INDEED IT HAS PROMPTED PRESIDENT CLINTON RECENTLY TO REINFORCE THE VERY COMMITMENT TO SOUTH KOREA THAT MR HALPERIN ONCE CRITICIZED MR HALPERIN'S VIEWS ON US INTERVENTION GENERALLY WOULD HAVE SEVERELY LIMITED US POWER AND COULD HAVE EVEN ENSURED ITS DEFEAT FOR EXAMPLE IN THE NATION OF JUNE 9 1979 HE WROTE ALL OF THE GENUINE SECURITY NEEDS OF THE UNITED STATES CAN BE MET BY A SIMPLE RULE WHICH PERMITS US TO INTERVENE ONLY WHEN INVITED TO DO SO BY A FOREIGN GOVERNMENT THE PRINCIPLE OF PROPORTION WOULD REQUIRE THAT AMERICAN INTERVENTION BE NO GREATER THAN THE INTERVENTION BY OTHER OUTSIDE POWERS IN THE LOCAL CONFLICT WE SHOULD NOT ASSUME THAT ONCE WE INTERVENE WE ARE FREE TO COMMIT WHATEVER DESTRUCTION IS NECESSARY IN ORDER TO SECURE OUR OBJECTIVES BY NOW IT IS COMMON KNOWLEDGE INCLUDING IN THE FORMER SOVIET UNION THAT THE REAGAN DEFENSE PROGRAM CONTRIBUTED TO THE DEFEAT OF COMMUNISM ITS CONTRIBUTION IN THIS REGARD WAS RECOGNIZED BY THOUGHTFUL OBSERVERS EVEN AT THE TIME YET AS THE COLD WAR YEARS PROGRESSED MR HALPERIN'S WORK CONTINUED TO REFLECT A BASIC MISCALCULATION OF THE VALUE OF HARDLINE POLICY IN THE NEW YORK TIMES JUNE 7 1981 HE QUESTIONED PRESIDENT REAGAN'S DEFENSE BUILDUP ARE WE NOW BUYING THE FORCES TO MEET THE REAL THREATS TO OUR SECURITY UNFORTUNATELY THERE IS LITTLE REASON TO BE CONFIDENT THAT WE ARE AT THE END OF THE COLD WAR MR HALPERIN SHOWED HIMSELF TO THE LEFT OF MANY DEMOCRATS INCLUDING HIS PROSPECTIVE BOSS LES ASPIN WHEN HE CRITICIZED THE GULF WAR ON JAN 28 1991 AS THE US WAS IN THE MIDST OF THAT WAR HE ASSAILED THE ADMINISTRATION IN COMMENTS REPORTED BY UNITED PRESS INTERNATIONAL IN THE NAME OF PROTECTING LIBERTY FROM COMMUNISM A MASSIVE UNDEMOCRATIC NATIONAL SECURITY STRUCTURE WAS ERECTED DURING THE COLD WAR WHICH CONTINUES TO EXIST EVEN THOUGH THE COLD WAR IS OVER NOW WITH THE GULF WAR HAVING COMMENCED WE ARE SEEING FURTHER UNJUSTIFIED LIMITATIONS OF CONSTITUTIONAL RIGHTS USING THE POWERS GRANTED TO THE EXECUTIVE BRANCH DURING THE COLD WAR A PARTICULAR OBSESSION FOR MR HALPERIN HAS BEEN THE US INTELLIGENCE COMMUNITY ALTHOUGH US AGENCIES PERFORMED INVALUABLE WORK DURING THE COLD WAR IN A 1976 BOOK TITLED THE LAWLESS STATE THE CRIMES OF US INTELLIGENCE AGENCIES MR HALPERIN WROTE USING SECRET INTELLIGENCE AGENCIES TO DEFEND A CONSTITUTIONAL REPUBLIC IS AKIN TO THE ANCIENT MEDICAL PRACTICE OF EMPLOYING LEECHES TO TAKE BLOOD FROM FEVERISH PATIENTS THE INTENT IS THERAPEUTIC BUT IN THE LONG RUN THE CURE IS MORE DEADLY THAN THE DISEASE HAVING FAILED TO APPRECIATE THE VITAL ROLE PLAYED BY US INTELLIGENCE AGENCIES IN WINNING THE COLD WAR HE CONTINUED TO RAIL AGAINST THEM IN ITS AFTERMATH FOR INSTANCE IN A JULY 23 1991 AIRING OF THE MACNEIL/LEHRER NEWSHOUR I THINK WE ACCEPTED COVERT INTELLIGENCE FOR THE FIRST TIME DURING THE COLD WAR PERIOD AND I THINK IN LIGHT OF THE END OF THE COLD WAR WE NEED TO ASSESS A VARIETY OF THINGS AT HOME INCLUDING SECRET INTELLIGENCE AGENCIES AND MAKE SURE THAT WE END THE COLD WAR AT HOME AS WE END IT ABROAD MOST EXPERTS HAVE LONG RECOGNIZED HUMAN INTELLIGENCE TO BE A CRUCIAL TOOL FOR DEALING WITH THREATS TO THE US YET MR HALPERIN'S RABID OPPOSITION TO THE AMERICAN USE OF SUCH INTELLIGENCE ESPECIALLY DURING THE COLD WAR AMOUNTED TO A CALL FOR RECKLESS UNILATERAL DISARMAMENT IN THE LAWLESS STATE HE WROTE SPIES AND COVERT ACTION ARE COUNTERPRODUCTIVE AS TOOLS IN INTERNATIONAL RELATIONS THE COSTS ARE TOO HIGH THE RETURNS TOO MEAGER COVERT ACTION AND SPIES SHOULD BE BANNED AND THE CIA'S CLANDESTINE SERVICES BRANCH DISBANDED ANOTHER FEATURE OF MR HALPERIN'S WRITINGS HAS BEEN HIS EXTREME VIEW OF THE FIRST AMENDMENT ONE THAT WOULD PRIMARILY BENEFIT THE ENEMIES OF FREEDOM FOR EXAMPLE IN THE NATION OF OCT 10 1987 HE WROTE NOTWITHSTANDING CRIMINAL ACTS IN WHICH THE PALESTINE LIBERATION ORGANIZATION MAY HAVE BEEN INVOLVED A BAN ON ADVOCACY OF ALL COMPONENTS OF THE PLO'S EFFORTS WILL NOT WITHSTAND CONSTITUTIONAL SCRUTINY IN THE NAME OF THE FIRST AMENDMENT MR HALPERIN HAS DEFENDED OTHER DUBIOUS PROPOSITIONS THE RIGHT TO DISCLOSE THE IDENTITIES OF US COVERT OPERATIVES THE RIGHT TO PUBLISH DETAILED NUCLEARWEAPONS DESIGN INFORMATION HE DEFENDED THE PROGRESSIVE MAGAZINE AFTER IT CHOSE TO PUBLISH A DETAILED BLUEPRINT FOR MAKING THE HYDROGEN BOMB AND THE RIGHT TO IMPEDE AND IMPAIR THE FUNCTIONS OF ANY FEDERAL AGENCY BY PUBLISHING UNCLASSIFIED INFORMATION UNAVOIDABLY MR CLINTON WILL BE ASSOCIATED WITH AND OBLIGED TO DEFEND SUCH SENTIMENTS SHOULD HE SEEK MR HALPERIN'S CONFIRMATION BY THE SENATE MR GAFFNEY IS THE DIRECTOR OF THE CENTER FOR SECURITY POLICY IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR HALPERIN MISTRUSTS SPIES IT'S NO SECRET WSJ OCT 4 1993 9308090111 YY93 MM10 9310050142 930826 LAW LEGAL BEAT CRIME VICTIMS FIND COUNSELING ON HOW TO COPE WITH THE MEDIA BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL CRIME VICTIMS WHOSE CASES BECOME PUBLIC OFTEN FACE A SECOND ASSAULT FROM THE NEWS MEDIA AS A RESULT VICTIMS' RIGHTS GROUPS INCREASINGLY ARE COUNSELING VICTIMS NOT ONLY ON THEIR LEGAL RIGHTS BUT ON MEDIA SPIN CONTROL THE GROUPS ARE FINDING THAT MANY INDIVIDUALS WHO SURVIVE AN ATTACK ARE MORE AFRAID OF MEDIA ATTENTION THAN OF THE STRESS OF RELIVING THEIR EXPERIENCE IN COURT VICTIMS ARE TRAUMATIZED ENOUGH BY THE INITIAL CRIME SAYS HERMAN MILLHOLLAND DIRECTOR OF THE LOS ANGELES COUNTY DISTRICT ATTORNEY'S VICTIM ASSISTANCE PROGRAM IN MANY ASSAULT CASES HE SAYS INDIVIDUALS FEEL THEY ARE VICTIMIZED AGAIN WHEN TV CAMERAS START WHIRRING AND JOURNALISTS HIT THEM WITH QUESTIONS LIKE HOW DID YOU FEEL WHEN THIS HAPPENED TO YOU OR DO YOU THINK YOU COULD HAVE PREVENTED IT FROM HAPPENING LINDA FAIRSTEIN CHIEF OF THE NEW YORK DISTRICT ATTORNEY'S SEX CRIMES PROSECUTION UNIT SAYS THAT WILL THIS BE IN THE MEDIA IS ONE OF THE FIRST QUESTIONS THAT VICTIMS ASK EVEN IN CASES WHERE THE POSSIBILITY OF COVERAGE IS NEGLIGIBLE THE NATIONAL VICTIM CENTER IN ARLINGTON VA IS ONE OF THE GROUPS NOW TEACHING VICTIMS HOW TO COPE WITH THE NEWS MEDIA ANNE SEYMOUR THE CENTER'S DIRECTOR OF COMMUNICATIONS AND RESOURCE DEVELOPMENT SAYS SENSATIONAL TABLOID TV SHOWS AND HIGHPROFILE TRIALS THAT QUESTION VICTIMS' INTEGRITY ACCOUNT FOR THE INCREASE IN VICTIMS SEEKING SUCH HELP THE CENTER HAS DISTRIBUTED ITS GUIDE VICTIMS' RIGHTS AND THE MEDIA TO THOUSANDS OF INDIVIDUALS AS WELL AS TO LOCAL AND STATE GROUPS AROUND THE COUNTRY MUCH OF THE ADVICE IS SIMPLE BUT SURPRISING TO PEOPLE FACING THE NEWS MEDIA FOR THE FIRST TIME VICTIMS CAN REFUSE INTERVIEWS WITH SPECIFIC REPORTERS CHOOSE A REPRESENTATIVE TO SPEAK FOR THEM AND SET THE TERMS FOR WHEN AND IF THEY TALK TO THE MEDIA AT ALL THOSE RIGHTS OFTEN CONFLICT WITH THE GOAL OF REPORTERS WHO SEEK DETAILS ABOUT THE VICTIM AS WELL AS ABOUT THE CRIME WHILE MANY VICTIMS WANT TO TALK TO THE NEWS MEDIA THEY DON'T ALWAYS REALIZE THE LOSS OF PRIVACY AND OTHER RISKS THEY MAY FACE BY GOING PUBLIC VICTIMS' RIGHTS ADVOCATES SAY SANDY PICARD FEARED GOING PUBLIC AFTER SHE WAS BRUTALLY ATTACKED BY TWO MEN AS SHE WAS LEAVING A NIGHTCLUB IN METHUEN MASS ON APRIL 19 1992 ONE MAN HELD HER WHILE ANOTHER MAN PUNCHED HER IN THE FACE THEN THEY THREW HER TO THE GROUND HIT HER WITH A METAL BAR AND KICKED HER UNTIL OTHERS EXITING THE CLUB SAW THE ATTACK AND STOPPED THEM ALTHOUGH MS PICARD A RESERVE POLICE OFFICER WANTED TO SEE HER ASSAILANTS TRIED AND CONVICTED SHE WORRIED ABOUT REPERCUSSIONS FROM ONE DETAIL OF THE CRIME SHE WAS ATTACKED BECAUSE SHE IS A LESBIAN SOMETHING ONLY HER FAMILY AND A FEW FRIENDS KNEW MS PICARD SAYS SHE CHOSE TO BE OPEN ABOUT HER SEXUAL ORIENTATION SO THAT IT COULDN'T BE USED AGAINST HER AT THE TRIAL DESPITE HER CONCERNS ABOUT HARASSMENT AND EVEN THE POSSIBILITY OF LOSING HER JOB AFTER THE NEWS COVERAGE HER FEARS WEREN'T UNFOUNDED MANY OF THE LOCAL JOURNALISTS WHO APPROACHED HER WANTED JUST THE FACTS SHE SAYS AND DIDN'T SHOW ANY CONCERN FOR HER FEELINGS OR THE POSSIBLE CONSEQUENCES OF HER GOING PUBLIC NOW THAT HER ASSAILANTS HAVE BEEN CONVICTED MS PICARD SAYS SHE WILL ONLY GIVE AN INTERVIEW TO THE ONE LOCAL REPORTER WHO TREATED HER WELL JOURNALISTS HAVE BEGUN TO ADDRESS VICTIMS' CONCERNS THEMSELVES THE AMERICAN PRESS INSTITUTE LAST YEAR HELD A SEMINAR ON CRIME VICTIMS' RIGHTS ENTITLED HAVE THE MEDIA GONE TOO FAR THE NATIONAL VICTIM CENTER AND FREEDOM FORUM'S FIRST AMENDMENT CENTER AT VANDERBILT UNIVERSITY ARE DEVELOPING A PROGRAM TO TEACH JOURNALISTS ABOUT THE EFFECTS OF CRIME ON VICTIMS AND TO HELP VICTIMS LEARN MORE ABOUT THE MEDIA DETROIT FREE PRESS RECRUITING EDITOR AND FORMER OMBUDSMAN JOSEPH GRIMM HAS HELD TWO SESSIONS IN THE NEWSROOM TO SENSITIZE JOURNALISTS TO CRIME VICTIMS' CONCERNS FROM THE VICTIMS' PERSPECTIVE MR GRIMM SAYS FAIR REPORTING HAS A LOT TO DO WITH LISTENING AND REPORTING ACCURATELY AND A LOT TO DO WITH TIMING IN TERMS OF WHEN DO YOU APPROACH THE PERSON AND HOW DO YOU ORGANIZE THE INTERVIEW STEPHEN HAINES PICTURE EDITOR AT THE DETROIT NEWS WHO HELPED WRITE A NATIONAL PRESS PHOTOGRAPHERS ASSOCIATION HANDBOOK ON DEALING WITH CRIME VICTIMS SAYS THAT RESPECTING A VICTIM'S PERSONAL CONCERNS CAN PAY OFF PROFESSIONALLY WHEN YOU BACK OFF YOU GET THE BETTER PICTURE HE SAYS IN MANY CASES I'VE HAD PEOPLE SAY YOU'RE THE ONE WHO DIDN'T PUSH ME AROUND' AND THEN GIVE HIM ACCESS THAT WASN'T GRANTED TO OTHER JOURNALISTS IN A BLOW TO FEDERAL EFFORTS TO STOP DRUGRELATED MONEYLAUNDERING THROUGH BANKS A US APPEALS COURT SAID THE GOVERNMENT CAN'T SEIZE AN 800000 MORTGAGE ON A HOUSE OWNED BY A DRUG DEALER THE SEIZURE IN 1988 WAS THE FIRST UNDER FEDERAL FORFEITURE LAWS THAT SOUGHT TO HOLD A FINANCIAL INSTITUTION CULPABLE FOR HELPING DRUG DEALERS LAUNDER PROCEEDS THROUGH REALESTATE TRANSACTIONS THE APPEALS COURT REVERSED A DECISION BY US DISTRICT JUDGE THOMAS SCOTT IN MIAMI WHO FOUND THAT PROPERTIES MORTGAGED TO BANKS CAN BE SEIZED AND THE MORTGAGES INVALIDATED IF IT CAN BE SHOWN THAT THE BANKS SHOULD HAVE KNOWN THEY WERE DEALING WITH DRUG DEALERS IN THE LOWERCOURT DECISION JUDGE SCOTT CITED 16 FACTORS THAT HE SAID SUGGESTED KNOWLEDGE IF NOT COMPLICITY ON THE PART OF REPUBLIC NATIONAL BANK OF MIAMI FOR INSTANCE A PANAMANIAN SHELL COMPANY WAS THE BORROWER AND THE MIAMI HOUSE WHICH WAS ABOUT TO BE SOLD WAS THE COMPANY'S PRINCIPLE ASSET ALSO REPUBLIC FAILED TO CONDUCT A TITLE SEARCH NEVER ASKED THE PURPOSE OF THE LOAN AND THE BORROWER HAD NO KNOWN METHOD OF REPAYMENT AS A RESULT JUDGE SCOTT RULED REPUBLIC COULDN'T BE CONSIDERED AN INNOCENT OWNER OF THE PROPERTY BUT IN REVERSING THE DECISION THE ELEVENTH US CIRCUIT COURT OF APPEALS IN ATLANTA SAID BANKS ARE INDEED INNOCENT OWNERS UNLESS IT CAN BE PROVED THEY HAD ACTUAL KNOWLEDGE OF ILLICIT CONDUCT A MUCH HIGHER LEGAL STANDARD THE COURT FOUND THAT SEVEN OF THE FACTORS CONSIDERED BY JUDGE SCOTT WERE CLEARLY ERRONEOUS AND THE REMAINING WERE NEUTRAL TO THE ISSUE OF ACTUAL KNOWLEDGE THE APPELLATE DECISION WHICH WAS ISSUED LAST MONTH WAS REPORTED IN MONEY LAUNDERING ALERT A MIAMIBASED NEWSLETTER STANLEY A BAILEY REPUBLIC'S ATTORNEY IN MIAMI SAID THE RULING EXONERATED THE BANK FEDERAL PROSECUTORS IN THE CASE COULDN'T BE REACHED FOR COMMENT THE DECISION APPARENTLY THE FIRST RULING ON THE SUBJECT BY A FEDERAL APPEALS COURT IS BINDING IN ALABAMA FLORIDA AND GEORGIA THE STATES THAT MAKE UP THE ELEVENTH CIRCUIT BOSTON EXPANSION NEW YORK LAW FIRM EPSTEIN BECKER & GREEN OPENED A 13LAWYER OFFICE IN BOSTON THE BOSTON OFFICE IS MADE UP MAINLY OF FORMER PARTNERS OF VARET MARCUS & FINK WHICH RECENTLY MERGED WITH EPSTEIN BECKER MILO GEYELIN CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR VICTIMS AND THE MEDIA WSJ OCT 4 1993 9308260039 YY93 MM10 9310040192 931004 WHO'S NEWS LIPOSOME CO'S SHAND QUITS HIS THREE POSTS AFTER NINE MONTHS PRINCETON NJ LIPOSOME CO SAID DAVID G SHAND RESIGNED AS EXECUTIVE VICE PRESIDENT CHIEF SCIENTIFIC OFFICER AND A DIRECTOR AFTER ONLY NINE MONTHS IN THE POSTS THE COMPANY WHICH DEVELOPS LIPOSOME AND LIPIDBASED PHARMACEUTICALS SAID DR SHAND 55 YEARS OLD WOULD SERVE AS A CLINICAL AND REGULATORY CONSULTANT ADVISING THE COMPANY ON CLINICAL TRIALS AND MATTERS RELATED TO THE FOOD AND DRUG ADMINISTRATION DR SHAND HAD JOINED LIPOSOME IN JANUARY FROM JANSSEN RESEARCH FOUNDATION A UNIT OF JOHNSON & JOHNSON WE NEEDED TO TIGHTEN OUR TIMELINES IN GETTING NEW DRUGS TO MARKET AND FELT IT BETTER THAT OUR CHIEF EXECUTIVE BECOME DIRECTLY INVOLVED IN OVERSEEING CLINICAL TRIALS AND DEVELOPING OUR PRODUCT STRATEGY SAID BROOKS BOVEROUX CHIEF FINANCIAL OFFICER HE SAID DR SHAND'S RESIGNATION WASN'T A COSTCUTTING ISSUE BUT MORE A RESULT OF MANAGEMENT'S DESIRE TO GET MORE INVOLVED IN PRODUCT DEVELOPMENT DR SHAND COULDN'T BE REACHED TO COMMENT ONE ANALYST WHO FOLLOWS THE COMPANY SPECULATED THAT DR SHAND'S ORIENTATION OF WORKING FOR A BIG COMPANY WASN'T WELLSUITED TO THE MORE HANDSON APPROACH OF A BIOTECHNOLOGY DEVELOPMENT CONCERN BUT ANOTHER ANALYST SHEKHAR K BASU SAID HE WOULDN'T BE SURPRISED IF DR SHAND WAS VERY FRUSTRATED WITH THE CLINICAL CHALLENGES OF LIPOSOME'S ABLC WHICH BRISTOLMYERS ABANDONED BECAUSE OF DIFFICULTY IN BOTH FORMULATION AND MANUFACTURING LAST YEAR LIPOSOME LAST YEAR REACQUIRED WORLDWIDE RIGHTS TO THE DRUG FROM BRISTOLMYERS SQUIBB CO ABLC IS BEING DEVELOPED TO TREAT SYSTEMIC FUNGAL INFECTIONS THAT CAN BE FATAL TO AIDS PATIENTS MR BASU OF BROKERAGE FIRM PUNK ZIEGEL KNOELL ALSO SAID LIPOSOME'S D99 ANTICANCER DRUG MAY POSE SIGNIFICANT CHALLENGES TO THE COMPANY AND TO PFIZER INC WHICH HAS THE LICENSE TO MARKET IT ALTHOUGH LIPOSOME DOESN'T CURRENTLY MARKET ANY PRODUCTS MR BOVEROUX SAID IT WAS GETTING IN POSITION TO MOVE FORWARD PRETTY AGGRESSIVELY ON ABLC WHICH IS GOING INTO PHASE III STUDIES 9310040191 931004 SOCIETY CORP AND KEYCORP VOTE TO MERGE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL KEYCORP OF ALBANY NY AND SOCIETY CORP OF CLEVELAND ARE EXPECTED TO ANNOUNCE A MERGER TODAY THAT WILL CREATE THE NATION'S 10THBIGGEST BANK AND ONE STRETCHING ACROSS 18 STATES PEOPLE FAMILIAR WITH THE DEAL SAID THE STOCK SWAP VALUED AT AN ESTIMATED 39 BILLION WILL BE THE FIRST BIG BANK MERGER IN YEARS IN WHICH BOTH BANKS ARE WELLMANAGED STRONGLY CAPITALIZED INSTITUTIONS IN DIFFERENT REGIONS THE TRANSACTION COULD SPARK SIMILAR MERGERS OF POWERFUL REGIONAL BANKS MERGER EXPERTS AND ANALYSTS SAY THE BOARDS OF THE TWO COMPANIES APPROVED THE MERGER FRIDAY THE COMBINED INSTITUTION WILL HAVE A MARKET CAPITALIZATION OF ABOUT 8 BILLION EACH COMPANY'S CAPITALIZATION IS ALMOST 4 BILLION AND TOTAL ASSETS OF ABOUT 58 BILLION THE MERGED BANK IS EXPECTED TO BE CALLED KEYCORP AND WILL BE BASED IN CLEVELAND TRADING IN THE STOCKS OF BOTH COMPANIES WAS HALTED ON THE NEW YORK STOCK EXCHANGE FRIDAY AFTERNOON AMID RUMORS OF THE IMPENDING DEAL SHARES OF KEYCORP JUMPED TO 3850 UP 625 CENTS AND SOCIETY SHARES CLIMBED TO 3250 UP 50 CENTS A KEY SPOKESMAN DECLINED TO COMMENT A SOCIETY SPOKESMAN DIDN'T RETURN CALLS VICTOR RILEY JR KEYCORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL BE CHIEF EXECUTIVE OF THE NEW BANK FOR TWO MORE YEARS AND THEN WILL REMAIN CHAIRMAN FOR AN ADDITIONAL THREE YEARS PEOPLE FAMILIAR WITH THE DEAL SAID ROBERT GILLESPIE SOCIETY'S CHAIRMAN AND CHIEF EXECUTIVE WILL BE PRESIDENT AND CHIEF OPERATING OFFICER FOR TWO YEARS AND THEN WILL BECOME CHIEF EXECUTIVE THE TRANSACTION IS STRUCTURED AS A MERGER OF EQUALS NEITHER BANK IS PAYING A PREMIUM IN THE MERGER AND NEITHER MANAGEMENT IS GAINING AN UPPER HAND BOTH THE 22MEMBER BOARD AND THE 18MEMBER MANAGEMENT COMMITTEE WILL BE EVENLY SPLIT BETWEEN EXECUTIVES OF THE TWO INSTITUTIONS SHAREHOLDERS OF SOCIETY CORP WILL RECEIVE ONE SHARE OF THE NEW COMPANY FOR EACH EXISTING SHARE AND KEYCORP SHAREHOLDERS WILL RECEIVE ABOUT 12 SHARES OF THE NEW COMPANY FOR EACH EXISTING SHARE PEOPLE CLOSE TO THE DEAL SAID BECAUSE THE BANKS ARE IN DIFFERENT PARTS OF THE COUNTRY AND HAVE NO OVERLAPPING MARKETS THEY DON'T EXPECT ANTITRUST PROBLEMS THE TRANSACTION WILL RESOLVE THE MANAGEMENTSUCCESSION ISSUE AT KEY WHERE MR RILEY 62 YEARS OLD HAS NO OBVIOUS SUCCESSOR MR GILLESPIE WHO JOINED SOCIETY IN 1968 AND WORKED HIS WAY UP TO CHAIRMAN IN 1988 IS A WELLREGARDED BANKER WHO IS ONLY 49 THE TWO EXECUTIVES HAD CONVERSATIONS ABOUT A POSSIBLE MERGER TWO YEARS AGO ALTHOUGH IT'S UNCLEAR WHY THE TALKS BROKE DOWN WHILE BOTH BANKS HAVE STELLAR BALANCE SHEETS AND STRONG EARNINGS THE MERGER REFLECTS THE CONCERN MANY BANKERS HAVE ABOUT THE 1990S HOW TO FIND REVENUE GROWTH THE NATION'S BIGGEST BANKS ARE CHASING A SHRINKING PIE OF BANKING ASSETS AS NONBANKS ENCROACH ON THEIR TURF WITH A MERGER SOCIETY AND KEY ACHIEVE ECONOMIES OF SCALE WHILE TAKING ADVANTAGE OF THEIR RESPECTIVE STRENGTHS SOCIETY IS STRONG IN THE PRODUCTS IT OFFERS IN PARTICULAR PERSONAL BANKING SUCH AS TRUST AND INVESTMENT MANAGEMENT BUT IS HEMMED IN GEOGRAPHICALLY WITH THE BULK OF ITS BUSINESS IN OHIO KEY HAS AN EFFICIENT BRANCH NETWORK ACROSS THE NORTHERN TIER OF THE US BUT HAS BEEN SLOW IN OFFERING NEW PRODUCTS SUCH AS MUTUAL FUNDS SOCIETY'S BIG BUSINESS LENDING BUSINESS IS ATTRACTIVE WHILE KEY'S SMALL BUSINESS LENDING IS TOPNOTCH THE TWO COMPANIES REALLY COMPLEMENT EACH OTHER SAID LIVIA ASHER BANKING ANALYST AT MERRILL LYNCH & CO ONE HAS THE PRODUCTS AND THE OTHER HAS THE DISTRIBUTION UNLIKE MOST BANK MERGERS THAT ARE HEAVILY DEPENDENT ON COST SAVINGS THIS TRANSACTION ASSUMES THAT THE COMBINED COMPANY'S EXPENSES OF 2 BILLION WILL BE TRIMMED BY ONLY 5 MANY BANK MERGERS OF COMPANIES IN SIMILAR MARKETS ASSUME COST SAVING OF AS MUCH AS 25 TO 30 BUT BECAUSE NEITHER COMPANY IS PAYING A PREMIUM FOR THE OTHER'S SHARES THE DEAL SHOULD IMMEDIATELY BENEFIT SHAREHOLDERS PEOPLE CLOSE TO THE DEAL SAY BOTH COMPANIES HAVE EXCELLENT TRACK RECORDS IN CONSOLIDATING BANK ACQUISITIONS THERE ARE OTHER DIFFERENCES THAT COULD PRESAGE ADDITIONAL CONSOLIDATION AND SHAKE UP THE NATION'S BANKING LANDSCAPE SINCE 1991 BANK MERGER ACTIVITY HAS HEATED UP BUT MOST DEALS ARE TWO COMPANIES IN THE SAME MARKETS STRONG BANKS TAKING OVER WEAK BANKS OR BIG BANKS ACQUIRING SMALLER BANKS BUT THIS TRANSACTION IS AN INDICATION THAT SIMILARLY VALUED BANKS IN DIFFERENT MARKETS AND DIFFERENT REGIONS COULD FIND A STRONG INCENTIVE TO LINK UP THERE ARE ALMOST 20 STRONG REGIONAL BANKS WITH BETWEEN 20 BILLION AND 50 BILLION IN ASSETS THAT COULD BE ATTRACTIVE TO EACH OTHER ANALYSTS SAY THAT NEW ENGLAND BANKS COULD EASILY LINK WITH PENNSYLVANIA BANKS AND PENNSYLVANIA BANKS COULD EASILY LINK WITH BANKS IN OHIO ILLINOIS OR MINNESOTA FOR INSTANCE TERRENCE MURRAY CHAIRMAN OF FLEET FINANCIAL GROUP HAS MADE IT CLEAR HE'S LOOKING FOR A MERGER PARTNER OUTSIDE HIS REGION HE TOLD INVESTORS IN JUNE THAT FLEET MAY JOIN FORCES WITH AN EQUAL SIZED BANKING CONCERN IN 1994 OR 1995 THERE'S AN ARC FROM BOSTON TO MINNESOTA IN WHICH THERE WILL INEVITABLY BE CONSOLIDATION H RODGIN COHEN A LEADING BANK MERGER ATTORNEY AT SULLIVAN & CROMWELL SAID AT A RECENT BANKING CONFERENCE EVERYONE SEES CONSOLIDATION AS ABSOLUTELY ESSENTIAL FOR EARNINGS GROWTH JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH BELIEVES THAT THE KEYSOCIETY MERGER COULD BE A CATALYST THAT FORCES A SENSE OF URGENCY ON OTHER INSTITUTIONS HE MENTIONED BANKS SUCH AS PNC BANK CORP CORESTATES FINANCIAL CORP FIRST BANK SYSTEM INC US BANCORP AND NORWEST CORP AS POSSIBLE MERGER CANDIDATES SAYS ONE PERSON CLOSE TO THE KEYSOCIETY DEAL THESE ARE THE KIND OF THINGS BANKS ARE GOING TO BE FORCED TO DO IF YOU'RE THE FIRST ONE TO DESIGNATE A PARTNER YOU HAVE THE PICK OF THE LITTER I SEE A WAVE OF THESE AND THE CHOICE OF PARTNERS GETS SMALLER 9310040190 931004 CORRECTIONS & AMPLIFICATIONS THORN EMI PLC'S RENTACENTER CHAIN ACHIEVES STORE PROFIT MARGINS OF 20 TO 30 COMPARED WITH CONVENTIONAL RETAILERS' STORE MARGINS THAT MANAGEMENT HORIZONS INC ESTIMATES AT 75 A SEPT 22 PAGEONE ARTICLE INCORRECTLY SET CONVENTIONAL RETAILERS' STORE PROFIT MARGINS AT 25 THE ARTICLE QUOTED A FORMER STORE MANAGER AS SAYING THAT RENTACENTER ULTIMATELY COLLECTED MORE THAN 5000 ON A VCR THAT RETAILED FOR 119 RENTACENTER SAYS THAT IT NEVER PURCHASED A VCR THAT RETAILED FOR THAT LOW A PRICE AND THE MANUFACTURER IS UNABLE TO PROVIDE SUGGESTED RETAIL PRICES FOR 1984 OR 1985 WHEN THE RENTAL PERIOD COMMENCED IN 1990 THAT MODEL OF VCR HAD A SUGGESTED RETAIL PRICE OF 249 RENTACENTER ALSO DENIES THAT IT COULD HAVE RECEIVED 5000 FROM CUSTOMERS FOR A SINGLE VCR THE FORMER STORE MANAGER STANDS BY HIS ACCOUNT THE ARTICLE SAID THAT AN EMPLOYEE TRAINING MANUAL DOESN'T INSTRUCT EMPLOYEES TO QUOTE THE TOTAL COST OF A RENTAL ITEM THE MANUAL SAYS THAT THE LAST STEP IN CLOSING THE AGREEMENT IS TO HANDLE ALL THE FINISHING DETAILS WHICH INCLUDE TELLING THE CUSTOMER WHAT THE GRAND TOTAL PAYMENT WILL BE FOR ALL HIS/HER AGREEMENTS THE ARTICLE SAID THAT IF RENTACENTER EMPLOYEES FAIL TO MEET SALES TARGETS THEY ARE FIRED WITH EXTRAORDINARY SPEED THE ARTICLE DIDN'T MEAN TO SUGGEST THAT EVERY EMPLOYEE WHO FAILS TO MEET PLAN IS FIRED SYNTEX CORP BOARD MEMBER ROBERT STEVENS MILLER JR IS VICE PRESIDENT AND TREASURER OF MOORE MILL & LUMBER CO IN AN ITEM IN TUESDAY'S WHO'S NEWS COLUMN MR MILLER WAS INCORRECTLY IDENTIFIED AS STILL WORKING FOR HIS FORMER EMPLOYER JAMES D WOLFENSOHN INC 9310040189 931004 POLITICS & POLICY HEALTH PLAN'S PROJECTED CUT IN DEFICIT IS LIKELY TO BE LESS THAN EARLY ESTIMATE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FINAL VERSION OF THE CLINTON HEALTH PLAN DUE LATER THIS MONTH PROBABLY WILL PROJECT LESS BUDGETDEFICIT REDUCTION OVER THE NEXT SEVEN YEARS THAN THE 91 BILLION SHOWN IN A WIDELY CIRCULATED DRAFT OF THE PLAN ADMINISTRATION OFFICIALS SAY IRA MAGAZINER MR CLINTON'S CHIEF HEALTH ADVISER SAYS THE FINAL NUMBERS AND REAMS OF SUPPORTING DOCUMENTATION SHOULD BE READY IN ABOUT TWO WEEKS THE FUNDAMENTAL BUILDING BLOCKS WON'T DIFFER BUT DETAILS AND FINAL COST ESTIMATES WILL AS THE ESTIMATES ARE REFINED THE PROJECTED AMOUNT OF DEFICIT REDUCTION PROBABLY WILL CHANGE IF THE DEFICIT NUMBER GOES TO 71 BILLION INSTEAD OF 91 BILLION THAT MAY BE AN OUTCOME OF THIS MR MAGAZINER SAID LAST WEEK IT MAY NOT IT MAY GO TO 110 BILLION BUT OTHER OFFICIALS SAY THE DEFICITREDUCTION NUMBER IS UNLIKELY TO BE AS LARGE AS THE FIGURE IN THE DRAFT ALTHOUGH PRESIDENT CLINTON HAS DESCRIBED THE HEALTH PLAN AT TIMES AS THE SECOND PART OF HIS STRATEGY TO REDUCE THE FEDERAL DEFICIT HE NEVER SET A SPECIFIC DEFICITREDUCTION TARGET OFFICIALS DESCRIBE THE DEFICIT NUMBER AS A RESIDUAL LEFT AFTER ALL THE POLICY DECISIONS AND COST ESTIMATES HAD BEEN MADE THE DEFICIT PROJECTIONS RELY ON THE CRUCIAL ASSUMPTION THAT MR CLINTON'S PROPOSED CAPS ON GOVERNMENT HEALTH SPENDING AND PRIVATE INSURANCE PREMIUMS ARE ACCEPTED BY CONGRESS AND ENFORCED BUT MANY HEALTHCARE ANALYSTS OUTSIDE THE ADMINISTRATION AND EVEN SOME OFFICIALS INSIDE THE ADMINISTRATION WARN THAT SUCH STRICT CAPS MIGHT NOT PROVE POLITICALLY VIABLE EVEN IF WRITTEN INTO LAW AND IF THE CAPS WERE TO BE LIFTED SOMETIME AFTER NEW HEALTH BENEFITS ARE GUARANTEED BY THE GOVERNMENT THE LIKELY RESULT WOULD BE A WIDER DEFICIT RATHER THAN THE NARROWER ONE PROJECTED IN THE PLAN ONE REASON THERE NOW IS EXPECTED TO BE LESS DEFICIT REDUCTION IS THAT THE WHITE HOUSE HAS DECIDED TENTATIVELY TO BUILD A BIGGER CONTINGENCY FACTOR OR CUSHION AGAINST POSSIBLE OVERRUNS INTO ITS ESTIMATES OF GOVERNMENT SUBSIDIES TO BE PROVIDED TO CERTAIN FAMILIES AND EMPLOYERS THE DRAFT INDICATES THE ADMINISTRATION'S BEST ESTIMATE IS THAT IT WILL SPEND ABOUT 65 BILLION A YEAR IN SUBSIDIES MEASURED AT 1994 DOLLARS WHEN THE PLAN IS FULLY PHASED IN TO THAT THEY HAVE ADDED A 10 CONTINGENCY TO BE CONSERVATIVE THE CONTINGENCY PROBABLY WILL BE INCREASED TO 15 MR MAGAZINER SAID THAT WOULD REDUCE THE AMOUNT OF MONEY LEFT FOR DEFICIT REDUCTION THE CONTINGENCY REFLECTS IN PART UNCERTAINTY OVER HOW BUSINESSES AND OLDER WORKERS WILL CHANGE THEIR BEHAVIOR IF THE PLAN IS ADOPTED AS PROPOSED OTHER ADMINISTRATION OFFICIALS SAID FOR INSTANCE THE PLAN WOULD ENCOURAGE MORE WORKERS TO TAKE EARLY RETIREMENT BECAUSE THE GOVERNMENT WOULD GUARANTEE THEM HEALTH INSURANCE AND SUBSIDIZE THEIR PREMIUMS ADMINISTRATION NUMBER CRUNCHERS BELIEVE ABOUT 5 MORE WORKERS BETWEEN THE AGES OF 55 AND 65 WOULD TAKE EARLY RETIREMENT ADDING ABOUT 1 BILLION TO THE FIVEYEAR COST OF THE PLAN BUT THEY CAN'T BE CERTAIN IT'S A GUESSTIMATE SAID KENNETH THORPE A HEALTH ECONOMIST AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WHO OVERSEES NUMBERCRUNCHING FOR THE PLAN BY ADDING ANOTHER 15 TO THE SUBSIDY TOTAL WE'VE TAKEN CARE OF THAT THE FIVEYEAR COST OF THE EARLYRETIREE PROVISION IS PUT AT SOMEWHERE BETWEEN 4 BILLION AND 6 BILLION INCLUDING THE ADDED SUM AS WITH EVERYTHING IN THE HEALTH PLAN THE RIPPLE EFFECT OF THIS ELEMENT WOULD BE WIDESPREAD IF MORE WORKERS RETIRE THEN FEWER WORKERS WOULD BE PAYING TAXES INTO THE MEDICARE AND SOCIAL SECURITY TRUST FUNDS THE ADMINISTRATION PLANS TO ASSESS SOME EMPLOYERS OF EARLY RETIREES TO MAKE UP THAT SHORTFALL THE SEPT 7 DRAFT PROJECTS THAT THE DEFICIT WILL BE REDUCED BY 11 BILLION IN FISCAL 1994 WHICH BEGAN OCT 1 AND BY 8 BILLION IN 1995 BECAUSE TOBACCO TAXES WOULD BE RAISED IMMEDIATELY AS NEW HEALTH SPENDING KICKS IN HOWEVER THE DEFICIT WOULD BE GREATER IN 1996 AND 1997 IN SUBSEQUENT YEARS THE DEFICIT IS PROJECTED TO BE REDUCED SIGNIFICANTLY AS GOVERNMENT HEALTH SPENDING FALLS FROM CURRENTLY PROJECTED LEVELS 9310040188 931004 WESTERN INVESTMENT IN EASTERN EUROPE GREW SHARPLY DURING RECENT PERIOD BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WESTERN COMPANIES HAVE BEEN STEPPING UP INVESTMENT IN EASTERN EUROPE DESPITE CONTINUED ECONOMIC AND POLITICAL UNCERTAINTY IN THE REGION THE NUMBER OF VENTURES STARTUPS AND PURCHASES ENTERED INTO BY WESTERN COMPANIES NEARLY TRIPLED IN THE SIX MONTHS ENDING IN MARCH TO 979 FROM 374 IN THE PRIOR SIX MONTHS ACCORDING TO A SURVEY BY EAST EUROPEAN INVESTMENT MAGAZINE EXCLUDING THE OIL AND NATURALGAS SECTOR IN WHICH LARGE MULTIYEAR CONTRACTS SKEW COMPARISONS FROM ONE PERIOD TO ANOTHER THE VALUE OF THE INVESTMENTS ROSE TO 112 BILLION FROM 85 BILLION IN THE PREVIOUS SIX MONTHS TRANSACTIONS IN THE OIL AND GAS SECTOR WHICH EXPERIENCED A FLOOD OF ACTIVITY FROM APRIL TO SEPTEMBER 1992 FELL TO 34 BILLION FROM 131 BILLION ALTHOUGH SEVERAL MULTINATIONAL COMPANIES HAVE BEEN SETTING UP OPERATIONS IN EASTERN EUROPE THE SURGE IN THE NUMBER OF DEALS SIGNALS THE INCREASING ENTRY OF MEDIUMSIZE COMPANIES INTO THE REGION MARK DIXON EDITOR OF THE NEW YORKBASED MAGAZINE SAID HOWEVER FOREIGN COMPANIES CONTINUE TO FACE HURDLES IN EASTERN EUROPE INCLUDING POLITICAL UNCERTAINTY FLEDGLING MARKETS FOR MANY PRODUCTS AND OBSTACLES TO THE REPATRIATION OF PROFITS SMALLER FOREIGN COMPANIES OFTEN MUST USE CONVOLUTED METHODS SUCH AS BARTER AND COUNTERTRADE TO TRANSFER PROFITS HOME WHILE LARGER CORPORATIONS TEND TO REINVEST THEIR EARNINGS MR DIXON SAID INVESTING IN EASTERN EUROPE IS STILL NOT FOR THE FAINTHEARTED HE NOTED NONETHELESS INVESTING IN EASTERN EUROPE INCLUDING RUSSIA IS NO LONGER A GAME FOR A FEW PIONEERS BUT IS BECOMING AN ESSENTIAL PART OF COMPANIES' GROWTH STRATEGIES MR DIXON SAID IN THE 18 MONTHS ENDED MARCH 1993 FOREIGN COMPANIES STRUCK 1700 DEALS IN EASTERN EUROPE VALUED AT 42 BILLION THE SURVEY SAID US COMPANIES BACKED BY THE WORLD'S LARGEST ECONOMY HAVE GARNERED THE LION'S SHARE OF TOTAL INVESTMENTS NEARLY ONETHIRD OF THE 1700 DEALS VALUED AT 136 BILLION MR DIXON SAID THAT US COMPANIES HAVE PREFERRED TO INVEST IN RUSSIA INSTEAD OF CENTRAL EUROPE BECAUSE THEY MAY HAVE FELT THAT THEY LOST OUT TO EUROPEAN COMPETITORS IN HUNGARY AND CZECHOSLOVAKIA WHILE RUSSIA OFFERS THEM AN EVEN SLATE AMONG COUNTRIES RUSSIA ATTRACTED THE MOST INVESTMENTS FROM FOREIGN CORPORATIONS RECENTLY WITH ITS 402 DEALS IN THE 18 MONTHS TOTALING 10 BILLION LARGE US CONCERNS HAVE BEEN AHEAD OF THE INVESTOR PACK IN EASTERN EUROPE IN THE PAST 18 MONTHS FORTUNE 500 COMPANIES HAVE CORNERED HALF THE OVERALL NUMBER OF DEALS REPRESENTING 80 OF OVERALL DOLLAR VALUE BUT MR DIXON EXPECTS SMALL AND MEDIUMSIZE COMPANIES TO INCREASINGLY ENTER CENTRAL EUROPE'S MARKETS AS THE REGION'S HIGHRISK REPUTATION FADES ITALIAN CORPORATIONS WITH 96 TRANSACTIONS VALUED AT 78 BILLION MADE A SURPRISINGLY STRONG SHOWING FOLLOWING US COMPANIES AS THE LARGEST INVESTORS IN THE REGION THEY WERE FOLLOWED BY BRITISH COMPANIES AT 65 BILLION AND GERMAN CONCERNS AT 36 BILLION JAPANESE COMPANIES' INVESTMENTS TOTALED LESS THAN 20 MILLION COMPANIES IN AN INCREASINGLY DIVERSE GROUP OF INDUSTRIES HAVE MADE FORAYS INTO EASTERN EUROPE ACCORDING TO THE SURVEY ALTHOUGH OIL AND GAS TRANSACTIONS ACCOUNTED FOR NEARLY 40 OF THE DOLLAR VALUE OF DEALS IN THE 18 MONTHS THE MOSTACTIVE SECTOR WAS ELECTRONICS WITH 200 TRANSACTIONS TOTALING 26 BILLION THE FOOD FINANCIALSERVICES AND TRANSPORTATION SECTORS ALSO MADE A STRONG SHOWING THE SURVEY FOUND THAT JOINT VENTURES WERE THE INVESTMENT VEHICLE OF CHOICE AMONG FOREIGN COMPANIES IN EASTERN EUROPE SUCH VENTURES ACCOUNTED FOR HALF OF ALL TRANSACTIONS FOLLOWED BY STARTUPS AT 32 AND ACQUISITIONS AT 18 EASTERN EUROPE IS THE EUROPEAN ANALOG TO THE NORTH AMERICAN FREE TRADE ACT SAID BRIAN HORRIGAN ECONOMIST AT LOOMIS SAYLES & CO BOSTON IT'S AN EMERGING MARKET WITH LOW WAGES AND WESTERN COMPANIES ARE GAMBLING THAT EASTERN EUROPEAN COUNTRIES WILL EVENTUALLY BE INCORPORATED INTO WESTERN EUROPE'S ECONOMY 9310040187 931004 EMERSON RADIO'S PLAN WOULD GIVE CONTROL TO A SWISS COMPANY PARSIPPANY NJ EMERSON RADIO CORP FILED A PREPACKAGED RESTRUCTURING PLAN IN FEDERAL BANKRUPTCY COURT IN NEWARK THAT WOULD GIVE A SWISS INVESTMENT FIRM MAJORITY OWNERSHIP OF THE COMPANY ACCORDING TO THE FILING FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE FIDENAS INVESTMENTS LTD WILL INVEST 90 MILLION TO GAIN 90 OF THE REORGANIZED CONSUMER ELECTRONICS COMPANY IN ITS CHAPTER 11 FILING EMERSON RADIO SAID IT HAD ASSETS OF 2083 MILLION AND LIABILITIES OF 2543 MILLION EMERSON RADIO HAS BEEN IN DEFAULT ON 223 MILLION OF DEBT FOR THE PAST TWO YEARS AND IN RECENT MONTHS THE COMPANY SHARE PRICE HAS TRADED BELOW 1 THE COMPANY'S STOCK WHICH DIDN'T TRADE THURSDAY OR FRIDAY CLOSED AT 156 CENTS A SHARE UNCHANGED ON WEDNESDAY EMERSON RADIO SAID IT EXPECTS THE PLAN TO REDUCE LONGTERM DEBT TO 45 MILLION AND IT HOPES TO EMERGE FROM BANKRUPTCY PROTECTION IN THE 1994 FIRST QUARTER ALTHOUGH SENIOR SECURED LENDERS HAVE VOICED SUPPORT FOR THE PLAN IT DOESN'T HAVE SUPPORT OF NOTEHOLDERS FIDENAS WHICH OWNS 20 OF EMERSON RADIO'S EQUITY WILL PROVIDE 15 MILLION IN DEBTORINPOSSESSION FINANCING AND 75 MILLION IN EXIT FINANCING EMERSON RADIO SAID IT HAS 168 MILLION OF BANK DEBT AND 55 MILLION OF PRIVATELY PLACED SENIOR UNSECURED NOTES HELD BY INSURANCE COMPANIES THE REORGANIZATION PLAN WOULD GIVE THE BANKS 70 MILLION OF CASH PLUS A MINIMAL AMOUNT OF PREFERRED AND STOCK OR ABOUT 45 CENTS ON THE DOLLAR THE PROPOSED PLAN OFFERS NOTEHOLDERS PRIMARILY INSURANCE COMPANIES 16 MILLION IN CASH PLUS MINIMAL EQUITY AND PREFERRED STOCK THE PLAN ALSO INCLUDES A RIGHTS OFFERING GIVING SHAREHOLDERS THE RIGHT TO PURCHASE AS MUCH AS 30 OF THE REORGANIZED COMPANY'S STOCK FIDENAS DOESN'T PLAN TO EXERCISE ITS RIGHTS IF THE OTHER RIGHTS ARE EXERCISED 60 OF EMERSON'S STOCK WILL BE HELD BY FIDENAS 30 BY FORMER SHAREHOLDERS EXCEPT FOR FIDENAS AND 10 BY CREDITORS THE SPOKESMAN SAID FOR FISCAL 1993 ENDED MARCH 31 EMERSON RADIO REPORTED A LOSS OF 56 MILLION OR 147 A SHARE ON SALES OF 7414 MILLION EMERSON RADIO IS NO RELATION TO EMERSON ELECTRIC CO ST LOUIS A MAKER OF INDUSTRIAL MACHINES AND COMPONENTS 9310040186 931004 HEARD ON THE STREET PRESS BLITZES ASIDE BIOTECHNOLOGY COMPANIES TAKE TIME TO TURN A PROFIT ON NEW DISCOVERIES BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN RECENT YEARS BIOTECHNOLOGY COMPANIES HAVE DONE A BETTER JOB OF PRODUCING PRESS RELEASES THAN SALES OR EARNINGS LOOK AT CELGENE CORP DESPITE FAILING TO TURN A PROFIT SINCE IT WENT PUBLIC IN 1987 THE WARREN NJ BIOTECH AND WASTETREATMENT CHEMICALS COMPANY ISN'T SHY ON THE CONTRARY IT'S ON A MISSION TO PUSH UP ITS SHARE PRICE AND GET MORE SMALL INVESTORS ABOARD FOR THE RIDE CELGENE IS PRESENTLY UNDERVALUED THE COMPANY ASSERTS THROUGH NCI PUBLIC RELATIONS A NEW JERSEY PUBLICRELATIONS FIRM THAT IT RETAINED OVER THE SUMMER THE COMPANY COMPLAINS THAT ITS STOCKMARKET VALUE IS ONLY 66 MILLION THAT'S 24 TIMES LAST YEAR'S REVENUE WHILE A COMPARABLE COMPANY SEPRACOR INC HAS A MARKET VALUE OF 150 MILLION CELGENE CLOSED FRIDAY AT 925 DOWN 25 CENTS IN NASDAQ TRADING JOHN UFHEIL CELGENE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAYS HE WANTS MORE SMALL INVESTORS TO BUY HIS HIGHRISK STOCK IN A RECENT ISSUE OF WALL STREET TRANSCRIPT WHICH PUBLISHES CEO INTERVIEWS HE MUSED IF WE COULD FIND A WAY LET'S SAY TO INCREASE THE NUMBER OF SHARES IN THE HANDS OF SMALL INVESTORS I THINK WE WOULD BE BETTER OFF WE JUST HAVEN'T HIT ON A WAY TO DO THAT YET BIOTECH COMPANIES ARE FAMOUS FOR PUTTING OUT LOTS OF ATTENTIONGRABBING PRESS RELEASES THAT TRUMPET THEIR LATEST RESEARCH STUDIES OR NEW MANUFACTURING SITES OFTEN THE BREATHLESS RELEASES FAIL TO MENTION ANY PROBLEMS FOR EXAMPLE CELGENE'S LATEST PR PITCH DOESN'T MENTION ITS FAILURE TO TURN A PROFIT OR THE RECENT POSTPONEMENT OF ITS TARGET DATE FOR DOING SO CELGENE SAYS IT HAS DEMONSTRATED PROGRESS IN ITS DRUG AND TOXICWASTETREATMENT BUSINESSES AND IS MAKING STRIDES TOWARD COMMERCIALIZATION WHILE ITS FUTURE IS BRIGHT RIGHT NOW IT'S ONE OF THE BESTKEPT SECRETS ON WALL STREET TWO YEARS AGO CELGENE SAID ITS GOAL WAS TO BE IN THE BLACK FOR ITS FIRST FULL YEAR IN 1994 THEN IT SAID 1995 BUT NOW THE COMPANY SAYS IT WON'T MAKE A PROFIT UNTIL PERHAPS 1996 CELGENE HAD NET LOSSES OF 71 MILLION IN 1992 86 MILLION IN 1991 AND 72 MILLION IN 1990 RG DALE HOLMES CHIEF FINANCIAL OFFICER SAYS CELGENE HAS PUSHED BACK ITS TARGET FOR MAKING A PROFIT BECAUSE OF PROGRESS WITH A COMPOUND UNDER STUDY AT ROCKEFELLER UNIVERSITY THAT COULD SLOW DOWN THE GROWTH OF THE AIDS VIRUS A PROJECT THAT IS SO EXCITING WE MAY NEED TO INCREASE THE EXPENDITURES SIGNIFICANTLY TO TAKE ADVANTAGE OF THAT OPPORTUNITY CELGENE USED TO BE AN INHOUSE RESEARCH EFFORT OF THE OLD CELANESE CORP WHICH NOW IS HOECHST AG'S HOECHST CELANESE UNIT CELGENE BECAME A SEPARATE COMPANY IN 1986 IN A TRANSACTION ENGINEERED BY WELLKNOWN BIOTECH INVESTOR DAVID BLECH IT WENT PUBLIC A YEAR LATER AT THE TIME THE COMPANY PROMISED THAT IT HAD AT LEAST TWO COMPOUNDS THAT WERE CLOSE TO COMMERCIALIZATION LAST YEAR HOECHST CELANESE SOLD ITS REMAINING 15 STAKE IN CELGENE NO ONE CAN FAULT CELGENE OR ANY OTHER DEVELOPMENTSTAGE COMPANY FOR TAKING YEARS BEFORE IT HAS VIABLE PRODUCTS TO SELL BUT THE TENDENCY OF BIOTECH FIRMS TO WORRY SO MUCH ABOUT BOOSTING THEIR STOCK PRICES IS TROUBLING ONE REASON IS THAT THERE ARE MORE THAN 220 PUBLICLY TRADED BIOTECH COMPANIES ON WALL STREET AND THERE'S HOT COMPETITION TO GAIN RECOGNITION CAUGHT IN THE MIDDLE OF CELGENE'S MARKETING EFFORTS IS ANALYST WILLIAM YOUNG OF DONALDSON LUFKIN & JENRETTE THE WALL STREET SECURITIES FIRM THAT WAS TO HAVE UNDERWRITTEN AN OFFERING OF CELGENE SHARES IN 1991 WHICH WAS POSTPONED DEAN WITTER DID CELGENE'S INITIAL OFFERING IN 1987 CELGENE WAS MIFFED WHEN MR YOUNG DOWNGRADED HIS VERY ATTRACTIVE RATING ON CELGENE TO MODERATELY ATTRACTIVE A WEEK AGO CELGENE CALLS MR YOUNG'S RATINGS CHANGE MYOPIC BECAUSE IT CONCENTRATES ONLY ON THE COMPANY'S NEARTERM PROSPECTS MR YOUNG FOR HIS PART SAYS HE STILL THINKS CELGENE IS EXCITING BUT THAT HE COULDN'T IGNORE THE PROFIT DELAYS HE SAYS CELGENE WON'T EVEN BREAK EVEN UNTIL 1996 AND WILL REQUIRE SUBSTANTIAL ADDITIONAL FINANCING BEFORE THEN HE INCREASED HIS ESTIMATE OF CELGENE'S ANNUAL LOSSES FOR 1993 TO 120 A SHARE FROM 60 CENTS AND WIDENED HIS ESTIMATE OF THE 1994 LOSS TO 1 FROM 15 CENTS MAYBE HE SAYS CELGENE WILL EVEN HAVE TO DO ANOTHER STOCK OFFERING WHICH PROBABLY MEANS MORE PRESS RELEASES YEAR ENDED DEC 30 1992 SECOND QUARTER JUNE 30 1993 9310040185 931004 COASTAL UNIT NOTE REDEMPTION HOUSTON COASTAL CORP SAID ITS ANR PIPELINE CO UNIT WILL REDEEM ON OCT 15 ALL OF ITS 13 1/4 NOTES DUE OCT 15 1997 OF WHICH 75 MILLION IN PRINCIPAL IS OUTSTANDING COASTAL IS AN ENERGY HOLDING COMPANY 9310040184 931004 SINGAPORE CHIEF WANTS NAFTA TO INVOLVE ASIA MORE TRADE ACROSS PACIFIC WILL COUNTER FORTRESS' IN EUROPE GOH SAYS BY KAREN ELLIOTT HOUSE STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE PRIME MINISTER GOH CHOK TONG SAID THE US CONGRESS'S RELUCTANCE TO APPROVE THE NORTH AMERICAN FREE TRADE AGREEMENT IS RAISING FEARS IN ASIA THAT THE US LIKE EUROPE IS TURNING PROTECTIONIST WITH GRAVE CONSEQUENCES FOR GLOBAL TRADE IN AN INTERVIEW MR GOH WHO WITH MOST OTHER ASIAN LEADERS WILL ATTEND A SUMMIT MEETING WITH PRESIDENT CLINTON IN SEATTLE IN MIDNOVEMBER SAID EXPANDED TRADE COOPERATION ACROSS THE PACIFIC IS CRITICAL NOW TO PROVIDE A COUNTERWEIGHT TO EUROPE'S FORTRESS MENTALITY HE EXPRESSED HOPE THAT THE ASIA PACIFIC ECONOMIC COOPERATION FORUM A GROUPING OF ASIAN NATIONS PLUS AUSTRALIA NEW ZEALAND CANADA AND THE US CAN PROVIDE THAT COUNTERWEIGHT APEC WILL MEET IN SEATTLE JUST BEFORE THE CLINTON SUMMIT WE SEE EUROPE BECOMING MORE AND MORE OF A FORTRESS DESPITE WHAT THE GERMANS AND THE FRENCH MAY CLAIM HE SAID I THINK SOME EUROPEAN GOVERNMENTS ESPECIALLY THE FRENCH MAY SUCCUMB TO ELECTORAL PRESSURE TO IMPLEMENT PROTECTIONIST MEASURES SO IF EUROPE BECOMES MORE INWARD LOOKING THERE'S A NEED FOR A COUNTERWEIGHT TO EUROPE'S INWARD TENDENCY NOTING THAT THE US GOVERNMENT IS PUSHING THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO HE ADDED IF THERE'S NO APEC THE DANGER IS THAT THE GLOBAL TRADING SYSTEM IS DIVIDED INTO TWO PROTECTIONIST BLOCS EUROPE AND NAFTA THEN OF COURSE ASIAN COUNTRIES MAY FORM THEIR OWN REGIONAL BLOC IF NAFTA CAN REACH OUT TO COUNTRIES IN ASIA THROUGH APEC THEN THERE IS A POSSIBILITY FOR PAFTA' A PACIFICAMERICAN FREE TRADE ARRANGEMENT THIS IS A BIGGER GROUP WHICH WILL BE ABLE TO COUNTER PROTECTIONIST DEVELOPMENTS IN EUROPE THIS GROUP OF COUNTRIES IS BIG ENOUGH TO ENSURE THAT THEIR TRADE CAN GROW WITHOUT EUROPE MR GOH WHO ASSUMED LEADERSHIP OF SINGAPORE NEARLY THREE YEARS AGO DECLINED TO CONTEMPLATE WHAT MANY US OFFICIALS FEAR A CONGRESSIONAL DEFEAT OF NAFTA FOLLOWED BY FAILURE TO CONCLUDE GLOBAL TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE BY A MIDDECEMBER DEADLINE THAT IS TOO HORRENDOUS A PICTURE HE SAID I THINK IT'S POSSIBLE THAT THERE IS NO GATT AGREEMENT BY DECEMBER AND THINGS WILL BE PUSHED BACK A LITTLE BY A FEW MONTHS TO ALLOW SOME ELECTIONS TO BE OVER WITH MR GOH WAS REFERRING TO ELECTIONS IN FRANCE WHICH HE SAID POSE THE MAJOR OBSTACLE TO CONCLUSION OF A NEW GATT AGREEMENT FRENCH FARMERS STRONGLY OPPOSE THE REDUCED AGRICULTURAL SUBSIDIES ENVISIONED BY GATT AND FRENCH POLITICAL LEADERS HAVE SO FAR REFUSED TO CONFRONT FARMERS OVER THE ISSUE EXACTLY WHAT WILL RESULT FROM MR CLINTON'S FIRST SUMMIT WITH ASIAN LEADERS ISN'T YET CLEAR AFTER ISSUING THE INVITATION TO THE SEATTLE MEETING DURING HIS VISIT TO JAPAN AND SOUTH KOREA EARLIER THIS YEAR HE ANNOUNCED LAST WEEK THAT HE ALSO WILL MEET SEPARATELY WITH CHINESE PRESIDENT JIANG ZEMIN GIVEN THE DETERIORATION OF USCHINA RELATIONS THIS MEETING COULD BE THE MOST IMPORTANT ENCOUNTER AT THE SEATTLE GATHERING THE NOV 19 ASIAN SUMMIT AND THE APEC MEETING PRECEDING IT WILL COINCIDE WITH US CONGRESSIONAL DEBATE ON NAFTA WHICH FACES AN UPHILL BATTLE DESPITE MR CLINTON'S BELATED SUPPORT THE CLINTON ADMINISTRATION THUS HOPES THAT THE SEATTLE SUMMIT WILL ALLOW THE PRESIDENT TO PRESENT TO THE WORLD A PICTURE OF AN ENGAGED INTERNATIONALIST AMERICA TO OFFSET THE PROTECTIONIST AND ISOLATIONIST RHETORIC EMANATING FROM CONGRESS AND BILLIONAIRE BUSINESSMAN ROSS PEROT PRIME MINISTER GOH SAID MR CLINTON HAS ASKED EACH ASIAN LEADER TO PRESENT HIS VISION OF APEC AND OF HIS COUNTRY'S FUTURE DEVELOPMENT SINGAPORE'S GOAL AT THE MEETING HE SAID IS TO MOVE APEC FORWARD AT A FASTER PACE TO PROTECT TRADE AND INVESTMENT FLOWS ACROSS THE PACIFIC THERE SHOULD NOT BE AN ASIAN PACIFIC AND WESTERN PACIFIC DIVIDE IF THERE IS THEN TRADE AND INVESTMENT FLOWS BETWEEN THE COUNTRIES ON BOTH SIDES OF THE PACIFIC WOULD BE AFFECTED 9310040183 931004 WHO'S NEWS NORTH CAROLINA NATURAL GAS CORP NORTH CAROLINA NATURAL GAS CORP FAYETTEVILLE NC FRANK BARRAGAN 75 YEARS OLD RETIRED AS CHAIRMAN OF THIS GAS DISTRIBUTOR MR BARRAGAN SAID HE STAYED ON PAST THE TRADITIONAL RETIREMENT AGE OF 65 BECAUSE THE PAST DECADE MARKED A PERIOD OF MAJOR EXPANSION FOR THE COMPANY NO SUCCESSOR HAS BEEN NAMED 9310040182 931004 INTERNATIONAL DANISH RETAIL SALES UP COPENHAGEN TOTAL RETAIL SALES IN DENMARK ROSE FOR THE PERIOD JULY AND AUGUST BY 3 COMPARED WITH MAY AND JUNE DANMARKS STATISTIK THE NATIONAL STATISTICS AGENCY SAID TOTAL RETAIL SALES FOR JULY AND AUGUST 1993 ROSE 2 FROM THE YEAREARLIER PERIOD AN INCREASE IN SALES FOR JULY AND AUGUST WAS POSTED IN ALL THE THREE MAIN CATEGORIES OF SHOPS WHICH COVER CLOTHING FOOD AND GENERAL RETAIL GOODS 9310040181 931004 TECHNOLOGY JUDGE SAYS BELL ATLANTIC CABLE RULING DOESN'T APPLY TO OTHER PHONE CARRIERS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL JUDGE WHOSE RECENT DECISION PAVED THE WAY FOR BELL ATLANTIC CORP TO PROVIDE VIDEO PROGRAMMING SERVICES IN ITS OPERATING AREAS SAID HIS RULING CAN'T APPLY TO OTHER REGIONAL PHONE CARRIERS THE LATEST RULING BY JUDGE TS ELLIS III IN ALEXANDRIA VA HIGHLIGHTS THE LEGAL TANGLE REGIONAL PHONE COMPANIES ARE LIKELY TO FACE EVEN AS THEY AMBITIOUSLY PREPARE TO SPEND BILLIONS OF DOLLARS TO BUILD NEW FIBER OPTIC NETWORKS TO PROVIDE BOTH TELEPHONE AND VIDEO SERVICES THE DECISION ALSO GIVES BELL ATLANTIC THE MOST AGGRESSIVE AMONG REGIONAL PHONE COMPANIES IN THE RACE TO SUPPLY CABLE SERVICES AN EDGE OVER ITS BRETHREN IN PROVIDING SUCH SERVICES THE OTHER BABY BELLS ROCHESTER TELEPHONE CORP AND GTE CORP WEREN'T PARTIES TO THE BELL ATLANTIC CASE BUT FOLLOWING HIS RULING PETITIONED TO INTERVENE AND ASKED THAT IT BE APPLIED TO THEM AS WELL BUT THE JUSTICE DEPARTMENT OPPOSED THEIR REQUEST ASSERTING THAT THE OTHER COMPANIES WERE TRYING TO BENEFIT FROM THE BELL ATLANTIC DECISION WITHOUT EXPOSING THEMSELVES TO ANY LEGAL RISK JUDGE ELLIS'S DECISION MEANS THAT THE OTHER REGIONAL PHONE COMPANIES WILL HAVE TO SEEK COURT PERMISSION INDEPENDENTLY TO PROVIDE VIDEO PROGRAMMING IN THE AREAS THEY SERVE I WAS SURPRISED BY THE NARROWED FOCUS OF THE JUDGE'S RULING SAID RICHARD BROWN VICE CHAIRMAN OF AMERITECH CORP ONE OF THE BABY BELLS THAT HOPED TO RECEIVE THE BENEFITS OF THE BELL ATLANTIC DECISION IT WILL MEAN ADDITIONAL DELAY AND ADDITIONAL COST ACCORDING TO JUDGE ELLIS'S AUG 24 DECISION IN THE BELL ATLANTIC CASE A PROVISION OF THE 1984 CABLE ACT BARRING TELEPHONE COMPANIES FROM OWNING AND OPERATING CABLE TV STATIONS IN ITS SERVICE TERRITORIES VIOLATED FIRST AMENDMENT RIGHTS AMERITECH IN CHICAGO SAID IT WILL SWIFTLY SEEK TO GET SIMILAR RULINGS IN TWO REGIONAL COURTS AND THE OTHER REGIONAL PHONE COMPANIES ARE LIKELY TO FOLLOW SUIT LEGAL HURDLES NOTWITHSTANDING REGIONAL PHONE COMPANIES ARE STILL AT LEAST TWO TO THREE YEARS FROM LAYING OUT THEIR FIBEROPTIC NETWORKS AND PROVIDING CABLE SERVICES THERE'S NOT A REAL RUSH SAID CHARLES SCHELKE ANALYST AT SMITH BARNEY SHEARSON BUT IF I WERE A REGIONAL PHONE COMPANY I'D GET THE WHEELS ROLLING AND START TO BUILD THE INFRASTRUCTURE BELL ATLANTIC EXPECTS EVENTUALLY TO PROVIDE 400 CHANNELS OF VIDEO SERVICE IN ADDITION TO VIDEOONDEMAND TO 60000 HOUSEHOLDS IN ALEXANDRIA VA ITS FIRST CUSTOMERS WILL RECEIVE THE SERVICES BY THE END OF 1994 BELL COMPANIES IN GENERAL REMAIN SOMEWHAT STYMIED IN THEIR VIDEO PROGRAMMING EXPANSION BY WHAT THEY CONSIDER TO BE OUTDATED STATE REGULATORY REQUIREMENTS TRADITIONAL RATEOFRETURN RATEMAKING PROCEDURES AREN'T FLEXIBLE ENOUGH TO PERMIT FINANCING OF CAPITAL INTENSIVE NEW TELECOMMUNICATIONS VENTURES THEY SAY AND SEPARATING THE COSTS OF REGULATED AND NONREGULATED BUSINESSES IS BECOMING PARTICULARLY COMPLICATED AMERITECH FOR INSTANCE IS ASKING REGULATORS IN FOUR OF ITS FIVE STATES TO FIX THE PRICES OF ITS SERVICES BUT NOT EARNINGS THE JUDGE'S ORIGINAL DECISION CLEARING THE WAY FOR BELL ATLANTIC TO PROVIDE VIDEO PROGRAMMING SERVICES IS HARDLY THE LAST WORD THE GOVERNMENT ALMOST ALWAYS APPEALS RULINGS THAT DECLARE LAWS UNCONSTITUTIONAL AND THE CASE COULD END UP IN THE SUPREME COURT IN ADDITION THE CONGRESS IS EXPECTED TO REVIEW THE CABLE ACT OF 1984 AND THE REGULATORY LANDSCAPE WILL REMAIN HAZY FOR SEVERAL YEARS BELL ATLANTIC DID A SMART THING AND WILL GET A HEAD START ALTHOUGH I WOULD SUSPECT THAT THIS DOES SET LEGAL PRECEDENT OF SORTS FOR OTHER CASES PAINEWEBBER ANALYST JACK GRUBMAN SAID THE RISK IS THAT OTHER DISTRICT COURT JUDGES IN SIMILAR CASES WILL VIEW THE LAW AND INTERPRETATION OF THE CONSTITUTION DIFFERENTLY 9310040180 931004 SUNBEAM TO MOVE HEADQUARTERS PROVIDENCE RI SUNBEAMOSTER SAID IT WILL MOVE ITS HEADQUARTERS TO FORT LAUDERDALE FLA AT THE END OF THE YEAR THE APPLIANCE MAKER SAID IT IS RELOCATING PRIMARILY TO BE CLOSER TO ITS MANUFACTURING FACILITIES IN THE SOUTHEASTERN STATES AND LATIN AMERICA CITING THE INTERNATIONAL AIRPORTS IN FORT LAUDERDALE AND MIAMI BUT JOSEPH PAOLINO JR DIRECTOR OF RHODE ISLAND'S DEPARTMENT OF ECONOMIC DEVELOPMENT ASSERTED THE MOVE WAS BECAUSE CHIEF EXECUTIVE OFFICER ROGER SCHIPKE LIVES IN FLORIDA 9310040179 931004 BISYS GROUP COMPLETES PURCHASE LITTLE FALLS NJ BISYS GROUP INC SAID IT COMPLETED THE PURCHASE OF WINSBURY CO A MARKETER AND ADMINISTRATOR OF PROPRIETARY MUTUAL FUNDS FOR ABOUT 60 MILLION WINSBURY BASED IN COLUMBUS OHIO PROVIDES DISTRIBUTION ADMINISTRATION ACCOUNTING AND OTHER SERVICES FOR ITS CLIENTS' PROPRIETARY MUTUAL FUNDS WINSBURY SERVICES MORE THAN 20 BILLION IN MUTUAL FUND ASSETS FOR 20 MUTUAL FUND GROUPS BISYS IS A PROVIDER OF INFORMATION PROCESSING LOAN SERVICES AND INVESTMENT SERVICES 9310040178 931004 TECHNOLOGY BIOMIRA CANCER DRUG ADVANCES EDMONTON ALBERTA BIOMIRA INC SAID IT RECEIVED CLEARANCE FROM THE US FOOD AND DRUG ADMINISTRATION TO BEGIN PHASE II CLINICAL TRIALS OF A DRUG FOR TREATING CANCER THE BIOTECHNOLOGY COMPANY SAID ITS THERATOPE STNKLH DRUG WILL BE TESTED ON 45 PATIENTS WITH MINIMAL METASTATIC BREAST CANCER THE COMPANY ALREADY HAS BEGAN CLINICAL TRIALS OF THE DRUG IN CANADA AND BRITAIN FOR TREATMENT OF BREAST COLON PANCREATIC AND OVARIAN CANCER 9310040177 931004 FORD MOTOR CO PLANT IN MICHIGAN TO BE IDLE DETROIT FORD MOTOR CO SAID ITS ASSEMBLY PLANT IN WIXOM MICH THAT BUILDS LUXURY CARS WILL BE IDLE FOR ONE WEEK BEGINNING TODAY BECAUSE OF SLOW SALES SALES OF ITS BESTSELLING LINCOLN TOWN CAR AND CONTINENTAL ARE OFF 2 TO 53 SO FAR THIS YEAR COMPARED WITH A YEAR AGO SALES OF FORD'S RESTYLED MARK VIII ARE BEHIND EXPECTATIONS INVENTORIES OF UNSOLD MARK VIIIS STOOD AT AN 85DAY SUPPLY LEVEL AT THE END OF AUGUST ACCORDING TO WARD'S AUTOMOTIVE REPORTS A 60TO65DAY SUPPLY IS CONSIDERED IDEAL FORD INTRODUCED THE NEW MARK IN DECEMBER 1992 AND PROJECTED THAT SALES WOULD REACH 35000 VEHICLES BUT FORD HAS SOLD 22611 VEHICLES THROUGH MIDSEPTEMBER MARK'S SALES COULD FALL SHORT OF THAT GOAL AT THE CURRENT SELLING PACE SEPARATELY FORD SAID IT HAD THREE CAR AND SEVEN TRUCK FACILITIES LOG OVERTIME LAST WEEK INCLUDING SATURDAY OVERTIME AT A LOUISVILLE KY TRUCK PLANT SUBARUISUZU AUTOMOTIVE INC SAID IT PLANNED TO BUILD ONLY 26 ISUZU LIGHTDUTY PICKUP TRUCKS LAST WEEK AS IT READIES TO BOOST OUTPUT OF ITS ISUZU RODEO SPORTUTILITY MODEL AT ITS LAFAYETTE IND ASSEMBLY PLANT THAT FACTORY IS JOINTLY OWNED BY JAPAN'S ISUZU MOTORS LTD AND SUBARU OF AMERICA A UNIT OF FUJI HEAVY INDUSTRIES LTD IN JAPAN GENERAL MOTORS CORP SAID IT DIDN'T PRODUCE ANY CHEVROLET CORSICA OR BERETTA MODELS AT ITS WILMINGTON DEL ASSEMBLY PLANT TWO WEEKS AGO BECAUSE OF A PARTS SHORTAGE GM SAID IT PLANS OVERTIME THIS WEEK AT THREE CAR AND SEVEN TRUCK ASSEMBLY OPERATIONS IN THE US CHRYSLER CORP SAID IT SCHEDULED OVERTIME THIS PAST SATURDAY AT ASSEMBLY PLANTS IN DETROIT NEWARK NJ STERLING HEIGHTS MICH ST LOUIS AND BRAMALEA AND WINDSOR ONTARIO CHRYSLER ALSO PLANNED OVERTIME THIS WEEK AT THREE ASSEMBLY PLANTS ALTOGETHER THE 10 US AUTO MAKERS SAID THEY PLANNED TO BUILD 213544 CARS AND TRUCKS LAST WEEK UP 66 FROM THE 200315 VEHICLES BUILT A YEAR AGO 9310040176 931004 FIRST UNION REAL ESTATE THE REALESTATE INVESTMENT TRUST SAID IT WILL REDEEM THE SENIOR NOTES AT PAR PLUS ACCRUED INTEREST FROM JUNE 16 TO NOV 1 OF 3141 HOLDERS OF THE DEBENTURES CAN REDEEM EACH 1000 FACE VALUE FOR 101025 PLUS ACCRUED INTEREST FROM AUG 1 TO NOV 1 OF 2562 OR CONVERT THE DEBENTURES INTO STOCK AT 2133 A SHARE THE REDEMPTION DATE FOR BOTH ISSUES IS NOV 1 9310040175 931004 YTL CORP WILL USE MALAYSIAN FINANCING FOR ELECTRICITY PROJECT KUALA LUMPUR MALAYSIA YTL CORP BHD OF MALAYSIA HAS ARRANGED LOCAL FINANCING FOR A 266 BILLION MALAYSIAN DOLLARS US104 BILLION ELECTRICITYGENERATING PROJECT THAT WAS SNUBBED BY FOREIGN LENDERS THE CONSTRUCTION COMPANY SAID THE PROJECT COMPRISING TWO SEPARATE POWER PLANTS WILL BE FINANCED WHOLLY BY MALAYSIAN INSTITUTIONS AS WELL AS BY KREDITANSTALT FUR WIEDERAUFBAU OF GERMANY HOWEVER THE GERMAN GOVERNMENTOWNED DEVELOPMENT AND EXPORTCREDIT BANK'S PORTION OF THE FINANCING PACKAGE WILL BE FUNDED BY MALAYSIAN BANKS FINANCING WAS THE LAST SIGNIFICANT HURDLE FOR THE PROJECT A YEAR AGO IT BECAME THE FIRST PROJECT TO WIN GOVERNMENT APPROVAL UNDER MALAYSIA'S PROGRAM TO LURE PRIVATE BUSINESS INTO THE POWERGENERATING INDUSTRY LONG MONOPOLIZED IN PENINSULAR MALAYSIA BY TENAGA NASIONAL BHD SEVERAL FACTORS HAVE HELD TENAGA'S POWERGENERATING CAPACITY AT A SLIM MARGIN ABOVE THE COUNTRY'S ELECTRICITY NEEDS POTENTIAL FOREIGN LENDERS HAD BALKED AT YTL'S TERMS PARTICULARLY THE COMPANY'S REQUEST FOR 90 FUNDING THROUGH 15YEAR LOANS SEVERAL FOREIGN BANKERS SAID THEY SOUGHT A FINANCING PACKAGE COMPRISING 70 LOANS WITH THE BALANCE TO COME FROM THE PROJECT'S INVESTORS RATHER THAN ACCOMMODATING FOREIGN LENDERS YTL SAID IT INSTEAD HAS ARRANGED FOR A 15YEAR FIXEDRATE BOND ISSUE TO BE FULLY SUBSCRIBED BY MALAYSIA'S EMPLOYEES PROVIDENT FUND AS WELL AS A 15YEAR FLOATINGRATE COMMERCIAL LOAN ARRANGED BY BANK BUMIPUTRA MALAYSIA BHD THE COMMERCIAL LOAN IS TO BE UNDERWRITTEN BY BANK BUMIPUTRA MERCHANT BANK BANK BUMIPUTRA'S INVESTMENTBANKING SUBSIDIARY KREDITANSTALT FUR WEIDERAUFBAU AND UNITED MALAYAN BANKING CORP BHD BANK BUMIPUTRA MERCHANT BANK HAS AGREED TO SELL DOWN PORTIONS OF THE LOAN TO OTHER MALAYSIAN BANKS ON BEHALF OF THE UNDERWRITERS 9310040174 931004 INTERNATIONAL SWISS BANK SETS CHINA VENTURE BEIJING ONE OF SWITZERLAND'S LARGEST BANKS SWISS BANK CORP PLANS TO OPEN A REPRESENTATIVE OFFICE IN SHANGHAI THE OFFICIAL CHINA DAILY REPORTED THE OFFICE WILL BE THE BANK'S SECOND IN CHINA THE REPORT SAID IT OPENED AN OFFICE IN BEIJING IN 1989 THE BANK WILL BE INVOLVED IN CHINA'S FLEDGLING SECURITIES MARKET THE NEWSPAPER QUOTED LI CHUNCHUN TANK'S BEIJING REPRESENTATIVE AS SAYING 9310040173 931004 APACHE CORP CONVERTIBLE DEBT HOUSTON APACHE CORP SAID VIRTUALLY ALL HOLDERS OF THE ENERGY COMPANY'S 7 1/2 CONVERTIBLE DEBENTURES OUTSTANDING DUE 2000 ELECTED TO RECEIVE COMMON STOCK IN LIEU OF CASH APACHE SAID THAT OF THE 150 MILLION TOTAL PRINCIPAL AMOUNT 1499 MILLION WILL BE CONVERTED INTO COMMON STOCK AT THE PREVIOUSLY REPORTED PRICE OF 1918 A SHARE APACHE SAID THE CONVERSION INCREASES TOTAL SHARES OUTSTANDING BY 15 OR ABOUT 78 MILLION SHARES 9310040172 931004 FINANCING BUSINESS OMNICARE INC OMNICARE INC CINCINNATI SAID IT SOLD 70 MILLION FACE AMOUNT OF 5 3/4 CONVERTIBLE SUBORDINATED NOTES DUE OCT 1 2003 THE NOTES WERE PRICED AT 100 OF THEIR FACE AMOUNT OMNICARE WHICH PROVIDES PHARMACY SERVICES TO LONGTERM CARE INSTITUTIONS SAID THE NOTES ARE REDEEMABLE AFTER OCT 10 1996 AT 10383 OF THEIR FACE AMOUNT WHICH DECLINES TO PAR AFTER OCT 1 2002 OMNICARE WILL USE PROCEEDS FROM THE OFFERING TO REPAY 11 MILLION OUTSTANDING ON A REVOLVING BANK CREDIT FACILITY AND FOR ACQUISITIONS AND GENERAL CORPORATE PURPOSES 9310040171 931004 INTERNATIONAL ROLLSROYCE GETS CHINESE ORDER BEIJING CHINA ORDERED 40 ROLLSROYCE ENGINES FOR ITS AIRPLANES THE OFFICIAL CHINA DAILY REPORTED FRIDAY THE RB211535 ENGINES WILL BE FITTED IN CHINA'S FLEET OF BOEING 757S AND ARE TO BE DELIVERED IN THREE YEARS THE REPORT SAID IT DIDN'T GIVE THE VALUE OF THE CONTRACT THE NEWSPAPER QUOTED STEWART MILLER THE COMPANY'S DIRECTOR OF ENGINEERING AND TECHNOLOGY AFFAIRS AS SAYING ROLLSROYCE HAS PROVIDED ONETHIRD OF CHINA'S AIRPLANE ENGINES 9310040170 931004 PATRICK PETROLEUM SELLS STOCK JACKSON MICH PATRICK PETROLEUM CO AN EXPLORATION AND PRODUCTION COMPANY SAID IT SOLD 750000 COMMON SHARES OF MARCUM NATURAL GAS SERVICES INC IN A BROKERAGE TRANSACTION WITH GENESIS MERCHANT GROUP SECURITIES FOR 6 MILLION PATRICK PETROLEUM SAID IT STILL OWNS 675200 MARCUM COMMON SHARES AND WARRANTS TO PURCHASE 1260000 SHARES AT 4 A SHARE PROCEEDS FROM THE SALE WILL BE USED TOWARD REDUCING BANK DEBT THE COMPANY SAID 9310040169 931004 TECHNOLOGY MICROSOFT CORP'S NEW SOFTWARE REDMOND WASH MICROSOFT CORP IS EXPECTED TO ANNOUNCE TODAY IT WILL BEGIN SELLING A NEW VERSION OF ITS WINDOWS FOR WORKGROUPS NETWORKING SOFTWARE THE COMPANY SAID THE SOFTWARE CALLED THE 311 VERSION OF WINDOWS FOR WORKGROUPS WILL COST WINDOWS USERS ABOUT 50 AND WILL BE FASTER AND MORE SECURE THAN MICROSOFT'S 31 VERSION OF WINDOWS FOR WORKGROUPS THE NEW SOFTWARE ALSO WILL ALLOW USERS TO SEND AND RECEIVE FAX MESSAGES MICROSOFT ADDED THAT IT HAS SOLD MORE THAN ONE MILLION COPIES OF THE 31 VERSION OF WINDOWS FOR WORKGROUPS 9310040168 931004 INTERNATIONAL FRENCH TRADE SURPLUS NARROWS PARIS FRANCE'S TRADE SURPLUS WAS MORE THAN HALVED IN JUNE TO 44 BILLION FRANCS 772 MILLION FROM 1088 BILLION FRANCS IN MAY ACCORDING TO SEASONALLY ADJUSTED FIGURES FROM THE FRENCH CUSTOMS OFFICE IN SEASONALLY ADJUSTED TERMS EXPORTS DROPPED 63 WHILE IMPORTS REMAINED STABLE 9310040167 931004 ASPIN TO DECIDE SOON ON REMOVING KELSO AS NAVY CHIEF IN WAKE OF TAILHOOK CASE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEFENSE SECRETARY LES ASPIN SAID HE WOULD DECIDE WITHIN A FEW DAYS WHETHER TO FORCE THE NAVY'S TOP OFFICER INTO EARLY RETIREMENT OVER HIS HANDLING OF THE TAILHOOK SCANDAL BUT MR ASPIN MAY HAVE TIPPED HIS HAND ON A TELEVISION TALK SHOW YESTERDAY WHEN HE CALLED A REPORT URGING SUCH ACTION EXCELLENT AND OTHERS AT THE PENTAGON CONTEND THAT THE OUSTER IS INEVITABLE WITH A RESIGNATION POSSIBLY COMING AS EARLY AS TODAY IN HIS REPORT NAVY SECRETARY JOHN DALTON RECOMMENDED THAT ADM FRANK KELSO BE RETIRED ABOUT NINE MONTHS EARLY FOR FAILING TO PRESIDE PROPERLY OVER THE SEA SERVICE DURING THE TAILHOOK SCANDAL THE LEADING CONTENDERS TO SUCCEED ADM KELSO AS CHIEF OF NAVAL OPERATIONS ARE ADM JEREMY MIKE BOORDA COMMANDER OF NATO'S SOUTHERN FLANK AND VICE ADM WILLIAM OWENS A POLITICALLY SAVVY OFFICER WHO OVERSEES THE NAVY'S PLANNING AND BUDGETING OPERATION NAVY SECRETARY DALTON ALSO HAS TOLD MR ASPIN THAT HE INTENDS TO ISSUE LETTERS OF SEVERE CENSURE TO SEVERAL OTHER ADMIRALS WHILE SUCH ACTION WOULDN'T FORCE THEM TO RETIRE IT WOULD EFFECTIVELY END THEIR MILITARY CAREERS A LARGER GROUP OF ADMIRALS ALSO WOULD RECEIVE LESS SEVERE ADMINISTRATIVE LETTERS THAT WOULD SOMEWHAT TAR THEIR OWN RECORDS ALL TOLD THE CAREERS OF MORE THAN A DOZEN OF THE NAVY'S MOST SENIOR OFFICERS WOULD BE HURT IN AN APPEARANCE ON CBSTV'S FACE THE NATION MR ASPIN SAID HE HADN'T YET MADE A DECISION ABOUT ADM KELSO BUT PART OF THE DEFENSE SECRETARY'S UNSPOKEN AGENDA SEEMS TO BE TO REASSERT CIVILIAN CONTROL OVER THE MILITARY WHICH SOME PENTAGON OFFICIALS THINK ERODED DURING THE REAGAN AND BUSH ADMINISTRATIONS THUS IT SEEMS UNLIKELY THAT MR ASPIN WOULD OVERRULE THE CIVILIAN HEAD OF THE NAVY WHO HAS BEEN IN OFFICE JUST TWO MONTHS IN FAVOR OF A MILITARY OFFICER THE MANNER IN WHICH THE DECISION IS BEING HANDLED ALREADY IS CAUSING AN UPROAR IN THE NAVY COMMUNITY ONE OFFICER NOTED THAT ADM KELSO TWICE OFFERED TO RESIGN IN THE WAKE OF THE TAILHOOK SCANDAL WHICH INVOLVED SEXUAL ASSAULTS AT A 1991 CONVENTION OF NAVAL AVIATORS IN LAS VEGAS BOTH TIMES THE OFFICER SAID THE ADMIRAL'S OFFER WAS REFUSED AND INSTEAD HE WAS TOLD TO FIX THE PROBLEM BY ALL ACCOUNTS ADM KELSO WORKED VIGOROUSLY TO DO SO TREATING SEXUAL HARASSMENT AS A CULTURAL PROBLEM MUCH AS THE NAVY TACKLED RACE PROBLEMS IN THE 1970S AND DRUG USE IN THE 1980S ADM KELSO A SOFTSPOKEN MAN IS WIDELY POPULAR WITHIN THE NAVY ESPECIALLY FOR HIS DEFT REORGANIZING OF THE TRADITIONBOUND SERVICE AND FOR HELPING IT ADJUST AFTER LOSING ITS COLD WAR MISSION OF KEEPING THE SOVIET NAVY FROM CONTROLLING THE SEA LANES TO EUROPE MOREOVER OF ALL THE SERVICES THE NAVY DEPARTMENT WHICH INCLUDES THE MARINES HAS SEEMED FAR MORE ATTUNED TO THE ASPIN WAY OF THINKING THAN HAVE THE ARMY OR AIR FORCE ADM KELSO ACTED QUICKLY TO OPEN UP COMBAT AVIATION TO WOMEN AND IN MR ASPIN'S RECENTLY COMPLETED REVIEW OF HOW TO RESHAPE THE US MILITARY TO FIT THE POSTCOLD WAR WORLD THE TWO BIG WINNERS WERE THE NAVY WHICH GOT TO KEEP 12 AIRCRAFT CARRIERS AND THE MARINES WHICH ACTUALLY GOT A BOOST IN SIZE COMPARED WITH THE BUSH ADMINISTRATION'S PLANS SOME NAVY OFFICERS WERE UPSET BY THE WAY IN WHICH ADM KELSO LEARNED OF THE PLANS FOR HIS OUSTER CBS REPORTED THE NAVY SECRETARY'S RECOMMENDATION FRIDAY BUT OTHERS SAID THE NAVY SECRETARY WAS UPHOLDING THE NAVAL TRADITION OF HOLDING THE CAPTAIN ACCOUNTABLE FOR WHAT HAPPENS ON HIS SHIP RETIRED ADM LEON EDNEY FORMER REGIONAL COMMANDERINCHIEF FOR THE ATLANTIC REJECTED THE LATTER VIEW AS UNFAIR TO THE CHIEF OF NAVAL OPERATIONS THE THEORY OF THE CAPTAIN OF THE SHIP DOESN'T SELL HE ARGUED IT WAS THE NAVAL AVIATION SHIP THAT RAN AGROUND NOT THE CNO'S THEY DIDN'T FIRE THE CNOS FOR RACE OR DRUG PROBLEMS 9310040166 931004 PLAYER IN HCACOLUMBIA MERGER SEES COMBINATION AS WALMART OF HEALTH BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS FINANCIER RICHARD RAINWATER WHO PLAYED A KEY ROLE AS A GOBETWEEN IN THE MERGER TALKS BETWEEN HCAHOSPITAL CORP OF AMERICA AND COLUMBIA HEALTHCARE INC SEES THE PROPOSED HOSPITAL GIANT AS THE WALMART OF HEALTH CARE COLUMBIA IS BECOMING WHAT WALMART STORES INC HAS BECOME TO THE RETAILING BUSINESS DESIGNING MORE EFFICIENT DELIVERY OF SERVICES TO THE HOSPITAL POPULATION MR RAINWATER SAID IN AN INTERVIEW IN THE ENVIRONMENT TO BE CREATED BY THE CLINTON ADMINISTRATION'S HEALTHCARE PLAN COLUMBIA HAD CONCLUDED THAT THE WAY TO SURVIVE WAS TO BE THE DOMINANT EFFICIENT HIGHQUALITY PROVIDER MR RAINWATER SAID ONCE THE HEALTHCARE PURCHASING ALLIANCES ENVISIONED BY THE CLINTON PROGRAM START PUTTING UP CONTRACTS FOR BIDS HE SAID IF YOU DON'T WIN THE BID YOU MAY HAVE NO BUSINESS MR RAINWATER WHO HELPED FINANCE THE STARTUP OF COLUMBIA IN 1987 AND WAS AN INVESTOR IN THE 1988 LEVERAGED BUYOUT OF HCA WILL HOLD A 3 STAKE VALUED AT ABOUT 270 MILLION IN THE COMBINED COMPANY THAT STAKE REPRESENTS ABOUT 40 OF HIS NET WORTH OF MORE THAN 600 MILLION A FORMER ADVISER TO THE BASS FAMILY OF FORT WORTH TEXAS MR RAINWATER DIVIDES HIS TIME BETWEEN HOMES IN FORT WORTH AND MANHATTAN AND HE SAID HE GOT THE FIRST CALL FROM THOMAS FRIST JR HCA CHAIRMAN ABOUT THREE WEEKS AGO EXPRESSING INTEREST IN MERGING WITH COLUMBIA MR RAINWATER HAD RESIGNED FROM THE HCA BOARD ABOUT THREE MONTHS AGO JUST BEFORE COLUMBIA AGREED TO ACQUIRE GALEN HEALTH CARE INC BY ISSUING ABOUT 35 BILLION IN STOCK THAT MERGER COMPLETED ABOUT A MONTH AGO CREATED A RIVAL HOSPITAL COMPANY LARGE ENOUGH TO POSE A CONFLICT OF INTEREST FOR MR RAINWATER IN SERVING AS A DIRECTOR OF THE TWO COMPANIES MR RAINWATER RECALLED YESTERDAY TOMMY CALLED ME A FEW DAYS AFTER THE COLUMBIAGALEN MERGER AND SAID INSTEAD OF WAITING A YEAR OR TWO HE WANTED TO INVESTIGATE IT RIGHT NOW TO SEE IF THERE WAS A POSSIBILITY OF AN HCACOLUMBIA MERGER MR FRIST SAID HE CALLED MR RAINWATER BECAUSE AS A MAJOR SHAREHOLDER OF BOTH COMPANIES HE WOULD BE FAIR IN EVALUATING THE MERITS OF PUTTING THE COMPANIES TOGETHER AND WOULD BE A GOOD INTERMEDIARY AND FACILITATOR HE SAID MR RAINWATER IMMEDIATELY PATCHED THE CALL THROUGH TO RICHARD SCOTT COLUMBIA'S CHAIRMAN MR RAINWATER SAID RICK WAS SURPRISED THAT THE OVERTURE WOULD COME FOLLOWING SO CLOSE ON THE HEELS OF THE COLUMBIAGALEN MERGER WHILE A HEALTHCARE LAWYER AT A DALLAS FIRM MR SCOTT HAD ACTUALLY LED AN UNSUCCESSFUL TAKEOVER BID FOR HCA IN THE MID1980S BEFORE FOUNDING COLUMBIA IN THE 18 MONTHS SINCE ITS INITIAL PUBLIC OFFERING HCA STOCK HAS REMAINED ESSENTIALLY FLAT AS THE ENTIRE HEALTHCARE INDUSTRY CAME UNDER A CLOUD FORMED BY THE CLINTON HEALTHCARE REFORM PROPOSALS BUT IN THE SAME PERIOD COLUMBIA SHARES HAVE DOUBLED AS ITS MARKET SHARE GREW IN SUCH CITIES AS HOUSTON CORPUS CHRISTI TEXAS AND MIAMI IN THE MERGER COLUMBIA WILL BE ACQUIRING HCA SHARES BY ISSUING 57 BILLION OF NEW COLUMBIA STOCK AT A PRICE OF 3025 A SHARE WHICH AMOUNTS TO A 40 PREMIUM TO HCA'S MARKET PRICE AS OF THE CLOSE OF TRADING FRIDAY WHEN MESSSRS RAINWATER AND SCOTT FOUNDED COLUMBIA IN OCTOBER 1987 THEY INVESTED A COMBINED 250000 IN EQUITY TO ACQUIRE TWO HOSPITALS IN EL PASO TEXAS FOR A TOTAL OF 45 MILLION BY OFFERING DOCTORS MINORITY STAKES IN THE BUSINESS AND BY MAKING ADDITIONAL ACQUISITIONS THE INVESTORS HAVE BOOSTED THE VALUE OF THAT EQUITY ALONE TO 300 MILLION MR RAINWATER SAID THE COLUMBIAHCA MERGER IS THE LATEST EXAMPLE OF A COMPANY USING ITS OWN HIGHFLYING STOCK AS CURRENCY FOR ACQUISITIONS IF THE MERGER IS APPROVED BY REGULATORS AND COMPLETED COLUMBIA WILL HAVE GROWN THROUGH TWO MAMMOTH STOCKFINANCED ACQUISITIONS TO A COMPANY WITH A STOCK MARKET VALUE OF ROUGHLY 10 BILLION FROM ONE WITH A MARKET VALUE OF 625 MILLION EARLIER THIS YEAR 9310040165 931004 CLOSEDEND FUNDS FOR TAXABLE BONDS SEE PREMIUMS NARROW NEW YORK CLOSEDEND TAXABLE BOND FUNDS SAW THEIR PREMIUMS NARROW TO 05 ABOVE THEIR UNDERLYING PORTFOLIOS' VALUE IN THE THIRD QUARTER DOWN FROM A PREMIUM OF 11 ON JUNE 30 CLOSEDEND MUNICIPAL BOND FUNDS MEANTIME WERE AT A DISCOUNT OF 05 OFF FROM A PREMIUM OF 07 IN JUNE ACCORDING TO LIPPER ANALYTICAL SERVICES INC CLOSEDEND BOND FUNDS INVEST IN A PORTFOLIO OF BONDS AS DO OPENEND BOND FUNDS BUT CLOSEDEND SHARE PRICES ARE SET BY SUPPLY AND DEMAND ON STOCK EXCHANGES INSTEAD OF BEING BOUGHT AND SOLD AT NET ASSET VALUE BY THE FUND COMPANIES THEMSELVES FUND SHARES SELLING ABOVE THE PORTFOLIO'S VALUE ARE SAID TO BE AT PREMIUMS WHILE SHARES THAT SELL BELOW THE PORTFOLIO ARE SAID TO BE AT DISCOUNTS 9310040164 931004 ARMCO IS TO RECORD THIRDPERIOD CHARGES FOR SELLING OFF UNITS PARSIPPANY NJ ARMCO INC SAID IT WOULD RECORD 205 MILLION IN PRETAX SPECIAL CHARGES FOR THE THIRD QUARTER TO COVER UNIT LOSSES AND RESERVE REQUIREMENTS FOR DISPOSAL OF PERIPHERAL BUSINESSES IN THE YEAREARLIER THIRD QUARTER THE SPECIALTY STEEL COMPANY POSTED A LOSS OF 252 MILLION OR 26 CENTS A SHARE WHICH INCLUDED EQUITY LOSSES FROM JOINT VENTURES TOTALING 262 MILLION AND A 54 MILLION GAIN ON THE SALE OF SOUTHWESTERN OHIO STEEL SALES WERE 5905 MILLION THE LATESTQUARTER CHARGES ARE PART OF A STRATEGY TO SHED FRINGE BUSINESSES AND FOCUS ON STAINLESS AND ELECTRICAL STEEL ARMCO SAID IT SOLD ITS WORLDWIDE GRINDING SYSTEMS UNIT'S HALF OF A WIREDRAWING VENTURE FOR 33 MILLION TO LEGGETT & PLATT INC THE VENTURE PARTNER THE COMPANY ALSO SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL THE REMAINDER OF WORLDWIDE TO BOSTONBASED INVESTMENT FIRM BAIN CAPITAL FOR 80 MILLION EXCLUDING CLOSING ADJUSTMENTS ARMCO SAID OF TOTAL SPECIAL CHARGES FOR THE QUARTER 40 MILLION IS ASSOCIATED WITH THE PLANNED SALE OF THE WORLDWIDE UNIT AND 15 MILLION WITH ARMCO'S PREVIOUSLY ANNOUNCED SALE OF ITS BRAZILIAN UNIT THE REMAINING 150 MILLION IS RELATED TO THE PLANNED SALE OF OTHER STEEL AND ARCHITECTURAL BUSINESSES INCLUDING CYTEMP SPECIALTY STEEL FLOUR CITY ARCHITECTURAL METALS AND ARMCO'S TEXTUBE DIVISION 9310040163 931004 HANSON PLC TAKES CONTROL OF QUANTUM SHUFFLES EXECUTIVES NEW YORK HANSON PLC OFFICIALLY TOOK CONTROL OF POLYETHYLENE MANUFACTURER QUANTUM CHEMICAL CORP RESTRUCTURING THE TROUBLED COMPANY AND SHUFFLING ITS SENIOR MANAGEMENT ABOUT 200 POSITIONS NINE IN THE COMPANY'S EXECUTIVE MANAGEMENT WILL BE ELIMINATED WITH THE RESTRUCTURING OF QUANTUM'S TWO MAJOR DIVISIONS INTO AUTONOMOUS UNITS A SPOKESWOMAN SAID UNDER THE PLAN QUANTUM'S USI CHEMICALS DIVISION WILL BECOME QUANTUM CHEMICAL CO AND THE SUBURBAN PROPANE GAS DIVISION CO WILL BECOME SUBURBAN PROPANE CO HANSON A LONDONBASED CONGLOMERATE BOUGHT QUANTUM IN JULY IN A STOCK SWAP THAT VALUED THE COMPANY AT 720 MILLION ABSORBING THE COMPANY'S 25 BILLION IN DEBT IT WILL BE PART OF HANSON INDUSTRIES THE US ARM OF THE BRITISH FIRM GEORGE W ROBBINS 53 A HANSON INDUSTRIES GROUP EXECUTIVE WAS NAMED ACTING CHAIRMAN OF QUANTUM CHEMICAL AND RONALD H YOCUM 54 NAMED CHIEF EXECUTIVE OFFICER WILL CONTINUE AS PRESIDENT CHARLES F DALY 46 HANSON GROUP COMPTROLLER WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SUCCEEDING DAVID LODGE 51 WHO IS LEAVING THE COMPANY DENIS J SPINA 49 PRESIDENT OF SUBURBAN PROPANE WAS NAMED TO THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER QUANTUM ALSO SAID IT WILL REDEEM ON OCT 30 SIX SERIES OF BONDS WITH AN AGGREGATE PRINCIPAL AMOUNT OF 115 BILLION WHICH CARRY DIVIDEND RATES RANGING FROM 8 7/8 TO 11 9310040162 931004 WHO'S NEWS EXCEL TECHNOLOGY INC EXCEL TECHNOLOGY INC HAUPPAGE NY CHARLES B MCGOUGH 59 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF BUSINESS DEVELOPMENT A NEW POSITION AT THIS PRODUCER OF LASER PRODUCTS AND RELATED SYSTEMS DR MCGOUGH HAS BEEN PRESIDENT OF AB LASERS INC BASED IN ACTON MASS 9310040161 931004 BUSINESS BRIEF FISCHER & PORTER CO STUDIES POSSIBLE SALE STOCK PRICE RISES 71 WARMINSTER PA FISCHER & PORTER CO SAID IT RETAINED CS FIRST BOSTON GROUP TO ADVISE IT ON WAYS TO ENHANCE THE VALUE OF ITS STOCK INCLUDING THE POSSIBLE SALE OF THE COMPANY THE COMPANY MAKES PROCESSCONTROL INSTRUMENTS AND HAS ANNUAL SALES OF 230 MILLION IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE FRIDAY ITS SHARE PRICE SOARED 6125 OR 71 TO CLOSE AT 1475 ON VOLUME OF 206900 SHARES FISCHER SAID A SALE COULD MAKE THE COMPANY MORE COMPETITIVE BY PROVIDING GREATER RESEARCH FINANCING AND MARKETING RESOURCES TO ASSIST IN AN ORDERLY REVIEW OF ALTERNATIVES IT SAID CONTROLLING SHAREHOLDERS JAY H TOLSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND E JOSEPH HOCHREITER PRESIDENT AND CHIEF OPERATING OFFICER CONVERTED THEIR CLASS B SHARES WHICH CARRY 10 VOTES EACH INTO COMMON STOCK WITH ONE VOTE A SHARE THE MOVE WILL REDUCE THEIR VOTING INTEREST TO 12 FROM 55 IN EXCHANGE THEY RECEIVED WARRANTS TO BUY ABOUT 11 MILLION COMMON SHARES AT 8625 A SHARE IF THE WARRANTS WERE EXERCISED THE TWO OFFICERS TOGETHER WOULD HAVE LESS THAN 31 OF THE COMPANY'S VOTING POWER 9310040160 931004 WHO'S NEWS COASTAL HEALTHCARE GROUP INC COASTAL HEALTHCARE GROUP INC DURHAM NC DAVID SINGLEY 35 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS CLINICAL CONTRACT MANAGEMENT COMPANY HE SUCCEEDS BARRY E SNIPES 40 WHO RESIGNED THIS SUMMER MR SINGLEY REMAINS PRESIDENT OF COASTAL PHYSICIAN CONTRACT MANAGEMENT SERVICES GROUP A UNIT FERNANDO VALVERDE 34 PRESIDENT OF GOLDSTAR MEDICAL MANAGEMENT GROUP SUCCEEDS MR SNIPES ON THE BOARD ALSO COASTAL APPOINTED RICHARD W KAPLAN 47 TO THE NEWLY CREATED POST OF PRESIDENT OF COASTAL MANAGED HEALTHCARE INC A UNIT 9310040159 931004 CLOSEDEND FUNDS FOR FOREIGN STOCKS TRADE AT PREMIUM NEW YORK INVESTORS BID UP THE SHARES OF FOREIGNSTOCK CLOSEDEND FUNDS TO A PREMIUM OF 13 ABOVE THE VALUE OF THEIR PORTFOLIOS IN THE THIRD QUARTER AT JUNE 30 SHARES WERE AT A DISCOUNT OF 08 BUT DOMESTICSTOCK CLOSEDEND FUND SHARES CONTINUED TO LANGUISH AT A DISCOUNT OF 34 NOT MUCH CHANGED FROM THE 37 DISCOUNT IN JUNE THE DATA ARE FROM LIPPER ANALYTICAL SERVICES INC CLOSEDEND FUNDS UNLIKE OPENEND FUNDS ARE PUBLICLY TRADED AND CAN SELL FOR MORE OR LESS THAN THE MARKET VALUE OF THEIR UNDERLYING PORTFOLIO OF SECURITIES WHEN HEAVY BUYING PUSHES FUNDS' SHARE PRICES ABOVE THEIR PORTFOLIO VALUES THEY ARE AT A PREMIUM WHEN SELLING PUSHES THEIR PRICES BELOW THEIR PORTFOLIO VALUES THEY ARE AT A DISCOUNT 9310040158 931004 WHO'S NEWS GENRAD INC GENRAD INC CONCORD MASS ROBERT E ANDERSON WILL STEP DOWN AS CHAIRMAN BUT REMAIN AS AN OUTSIDE DIRECTOR COMPLETING A MANAGEMENT TRANSITION GENRAD SAID IT TRADITIONALLY USES THE CHAIRMAN'S POST DURING TRANSITION PERIODS FOR A NEW CHIEF EXECUTIVE OFFICER IN JULY THE MAKER OF ELECTRONIC TEST EQUIPMENT NAMED JAMES F LYONS PRESIDENT AND CHIEF EXECUTIVE GENRAD SAID MR ANDERSON WILL BE PRESIDENT OF OMNIKEN INC A GROTON MASS MANAGEMENT CONSULTANT CONCERN 9310040157 931004 KENNECOTT REACHES ACCORD WITH UNIONS SALT LAKE CITY KENNECOTT CORP SAID IT REACHED A TENTATIVE AGREEMENT ON A THREEYEAR LABOR CONTRACT WITH UNIONS REPRESENTING ITS 2000 COPPER MINING AND PROCESSING EMPLOYEES THE CONTRACT IF APPROVED BY A UNION VOTE TOMORROW WILL INCLUDE AN AVERAGE WAGE INCREASE OF 180 AN HOUR OR 13 OVER THE NEXT THREE YEARS A 17 INCREASE IN PENSION BENEFITS AND AN ENHANCED EARLYRETIREMENT PACKAGE KENNECOTT IS OWNED BY RTZ CORP AND OPERATES THE BINGHAM CANYON MINE NEAR SALT LAKE CITY 9310040156 931004 SALES OF CARS TRUCKS BUSES IN JAPAN FALL 5 FROM THE YEAR BEFORE SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S SALES OF NEW CARS TRUCKS AND BUSES AS MEASURED BY REGISTRATIONS FELL 5 IN SEPTEMBER FROM THE YEAREARLIER MONTH TO 443023 UNITS THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION SAID JAPAN'S MOTORVEHICLE SALES HAVE FALLEN BELOW YEAREARLIER LEVELS FOR THE PAST 29 MONTHS WITH THE EXCEPTIONS OF JUNE 1992 AND MARCH 1993 DESPITE THE CONTINUING DOWNTREND IN CAR SALES THE PACE OF THE YEARONYEAR DECLINE WAS THE SLOWEST IN SEPTEMBER SO FAR THIS YEAR AS IN AUGUST SEPTEMBER'S MOTORVEHICLE SALES BENEFITED FROM THE INTRODUCTION BY SEVERAL MAKERS OF UPDATED MODELS THAT WAS THE MAIN REASON SEPTEMBER MARKED THE SECOND MONTH IN A ROW THAT MIDSIZED PASSENGERCAR SALES INCREASED FROM THE YEAREARLIER LEVEL THE 5 DECLINE IN SEPTEMBER'S SALES WAS SMALLER THAN THE 87 YEARONYEAR DECLINE IN AUGUST AND THE 10 TO 13 DECLINES IN EACH OF THE PRECEDING FOUR MONTHS CITING CONCERNS ABOUT FURTHER SHRINKAGE IN PERSONAL CONSUMPTION AND CORPORATE CAPITAL INVESTMENT AMID WORRIES ABOUT ANOTHER DOWNTURN IN THE ECONOMY OFFICIALS AT MAJOR AUTO MAKERS PREDICT THERE WON'T BE A SUBSTANTIAL RECOVERY IN DOMESTIC CAR SALES IN THE REMAINDER OF THIS FISCAL YEAR WHICH ENDS IN MARCH 9310040155 931004 WHO'S NEWS SCHERINGPLOUGH CORP SCHERINGPLOUGH CORP MADISON NJ ROBERT E BALDINI 63 YEARS OLD WAS NAMED TO THE NEW POST OF PRESIDENT OF KEY PHARMACEUTICALS A MARKETING UNIT OF THE US PRESCRIPTION DRUG ARM OF THIS HEALTHCARE PRODUCTS COMPANY HE HAD BEEN SENIOR VICE PRESIDENT MARKETING AND SALES OF KEY PHARMACEUTICALS HE WILL ASSUME OVERALL RESPONSIBILITY FOR KEY AND FOR WARRICK PHARMACEUTICALS A UNIT OF SCHERING CORP AND AN EXPANDED MARKETING AND SALES OPERATIONS FUNCTION RAUL E KOHAN 41 WAS NAMED PRESIDENT OF SCHERINGPLOUGH ANIMAL HEALTH A WORLDWIDE OPERATING UNIT MR KOHAN WHO WAS VICE PRESIDENT FINANCIAL OPERATIONS OF SCHERINGPLOUGH INTERNATIONAL SUCCEEDS RAMAN KAPUR 47 WHO WAS NAMED VICE PRESIDENT KEY PHARMACEUTICALS 9310040154 931004 WHO'S NEWS HADSON ENERGY RESOURCES CORP HADSON ENERGY RESOURCES CORP OKLAHOMA CITY WILLIAM J JOHNSON PRESIDENT AND CHIEF OPERATING OFFICER OF APACHE CORP WHICH OWNS A MAJORITY STAKE IN HADSON ENERGY WAS NAMED CHAIRMAN CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF HADSON MR JOHNSON 59 YEARS OLD SUCCEEDS JOHN C CAPSHAW 61 WHO WILL REMAIN PRESIDENT AND A DIRECTOR HADSON ALSO SAID J MICHAEL ADCOCK GORDON F AHALT ROBERT P CAPPS AND WILLIAM C RANKIN RESIGNED AS DIRECTORS HADSON SAID IT DOESN'T HAVE PLANS AT THIS TIME TO NAME SUCCESSORS TO THE BOARD LEAVING THE BOARD'S SIZE AT FIVE MEMBERS 9310040153 931004 WHO'S NEWS COOPER INDUSTRIES INC COOPER INDUSTRIES INC HOUSTON CARL J PLESNICHER JR WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES OF THIS DIVERSIFIED MANUFACTURING CONCERN MR PLESNICHER 56 YEARS OLD WAS MOST RECENTLY VICE PRESIDENT HUMAN RESOURCES AT COOPER INDUSTRIES 9310040152 931004 UNLIKE DIAMONDS VIDEOTAPE MEMORIES MAY NOT BE FOREVER STUDIES FIND THAT HUMIDITY HEAT AND IMPROPER STORAGE MAY LIMIT LIFE TO 15 YEARS BY ADRIENNE PETTY STAFF REPORTER OF THE WALL STREET JOURNAL CONTRARY TO POPULAR OPINION VIDEOTAPE MAY NOT LAST FOR GENERATIONS IN FACT IT MAY LAST ONLY 15 YEARS AND FAILURE TO CARE FOR IT MAY SHORTEN ITS LIFE EVEN FURTHER THAT MAY COME AS A SHOCK TO PEOPLE WHO THINK THEY ARE RECORDING BABY'S FIRST STEPS FOR POSTERITY OR HAVE TRANSFERRED FAMILY MOVIES TO VIDEOTAPE MINNESOTA MINING & MANUFACTURING CO AND OTHER COMPANIES HAVE TESTED THE LONGEVITY OF VIDEOTAPE BY SIMULATING ITS AGING SAYS LES ASEERE A TECHNICAL SPECIALIST AT 3M WHICH MAKES SCOTCH BRAND VIDEOTAPES BUT EVEN THESE STUDIES AREN'T TOTALLY RELIABLE STUDIES CAN SIMULATE AGE BUT THEY REALLY CAN'T REPLICATE AGE SAYS PHILIP M RITTI VICE PRESIDENT FOR AUDIOTAPE AND VIDEOTAPE AT AMPEX RECORDING MEDIA CORP REDWOOD CITY CALIF THE MAIN ENEMIES OF VIDEOTAPE ARE EXTREME HEAT AND HUMIDITY ACCORDING TO A REPORT PUBLISHED IN THE JOURNAL OF THE SOCIETY OF MOTION PICTURE AND TELEVISION ENGINEERS THE MOST COMMONLY USED VIDEOTAPE EMPLOYS A POLYESTERURETHANE BINDER SYSTEM WHICH TRAPS MAGNETIC OXIDE PARTICLES THE CARRIERS OF THE MAGNETICALLY ENCODED INFORMATION WITHIN THE TAPE IF THE BINDER SYSTEM IS EXPOSED TO HIGH TEMPERATURE AND HUMIDITY THE URETHANE PARTICLES IN THE COATING WILL REACT WITH WATER BREAK FREE AND SETTLE ON THE SURFACE OF THE TAPE THE NEXT TIME THE TAPE IS PLAYED THE OXIDE PARTICLES PEEL OFF WRECKING THE TAPE DUST AND SMOKE CAN ALSO CAUSE TROUBLE A SPECK OF DUST ON THE TAPE IF NOT SWEPT AWAY BY THE HEADS WILL LITERALLY BE LIFTED OFF THE TAPE CAUSING A MOMENTARY GLITCH OR SNOW ON THE IMAGE SAID DICK SKARE A SPOKESMAN FOR 3M SOME CONSUMERS WERE SURPRISED TO LEARN THAT THEIR MOST CHERISHED VIDEOTAPES COULD DETERIORATE DIANA ALTMAN OF NEWTON MASS PAID 750 TO HAVE A COLLECTION OF 16MM REELS INCLUDING SCREEN TESTS FROM THE 1930S OF AVA GARDNER HENRY FONDA AND BOB HOPE TRANSFERRED TO VIDEOTAPES SHE THOUGHT SHE HAD INDEFINITELY EXTENDED THE LIFE OF THE FILMS WHICH SHE INHERITED FROM HER FATHER A TALENT SCOUT FOR METRO GOLDWYN MAYER BUT A CHEMIST TOLD HER THAT THE VIDEOTAPE WOULD DISINTEGRATE EVEN SOONER THAN THE 16MM FILM SOME MANUFACTURERS STILL SUGGEST THAT VIDEOTAPE CAN BE FOREVER IF TAPES ARE STORED PROPERLY WE FEEL THAT THE MEMORIES THAT ARE ON THOSE TAPES CAN LAST INDEFINITELY SAID BRIAN LEVINE A SPOKESMAN FOR SONY CORP OTHER COMPANIES ARE RELUCTANT TO STICK THEIR NECKS OUT AS FAR AS SONY IN ASSURING THE LONGEVITY OF THEIR TAPES BUT THEY AGREE CONSUMERS CAN PROLONG THEIR LIFE BY FOLLOWING SOME BASIC TIPS THE GUIDELINES ARE SIMPLE DON'T EXPOSE THE TAPE TO ANYTHING YOU WOULDN'T EXPOSE YOURSELF TO MR ASEERE SAID SONY AND 3M URGE CONSUMERS TO KEEP TAPES IN A COOL DUSTFREE ENVIRONMENT AWAY FROM SUNLIGHT STORE THEM IN AN UPRIGHT POSITION LIKE BOOKS KEEP THEM REWOUND SO THERE'S NO SLACK ON EITHER END REWIND AND FASTFORWARD THEM AT LEAST ONCE A YEAR FOR VENTILATION KEEP THEM AWAY FROM STRAY MAGNETIC FIELDS AND STORE THEM IN A DRY PLACE TO PREVENT CONDENSATION 9310040151 931004 WHO'S NEWS HERO PICKS BERDON FOR ACTING CHAIRMAN NEW YORK HERO GROUP LTD SAID ITS BOARD ELECTED MATTHEW A BERDON ACTING CHAIRMAN AFTER THE DEATH OF HERBERT ROUNICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE WOMEN'S CLOTHING MAKER MR BERDON WHO HAS SERVED AS A DIRECTOR SINCE SEPTEMBER 1991 IS A MEMBER OF THE ACCOUNTING FIRM FERRO BERDON & CO ON SEPT 24 HERO SAID THAT MR ROUNICK DIED FOLLOWING A CEREBRAL HEMORRHAGE HERO SAID THAT ITS BOARD ALSO ESTABLISHED A THREEPERSON EXECUTIVE COMMITTEE TO SERVE TEMPORARILY AS THE OFFICE OF THE CHIEF EXECUTIVE COMMITTEE MEMBERS ARE ALLAN R BOGNER HERO PRESIDENT AND CHIEF OPERATING OFFICER MARIA NG VICE CHAIRMAN AND PRESIDENT OF THE COMPANY'S MANUFACTURING DIVISION AND RICHARD WOOLWINE EXECUTIVE VICE PRESIDENTOPERATIONS CHIEF FINANCIAL OFFICER TREASURER AND SECRETARY IN ADDITION THE BOARD ESTABLISHED A GOVERNANCE COMMITTEE TO REVIEW THE MANAGEMENT STRUCTURE AND PERSONNEL OF THE COMPANY HERO PRODUCES AND MARKETS APPAREL UNDER PROPRIETARY LABELS INCLUDING NITELINE AND UNDER LICENSED DESIGNER LABELS THAT INCLUDE OLEG CASSINI BILL BLASS BOB MACKIE BOUTIQUE JG HOOK AND OSCAR DE LA RENTA STUDIO 9310040150 931004 USX AND STEELWORKERS AGREE TO RESUME TALKS ON A CONTRACT OCT 14 PITTSBURGH USX CORP AND THE UNITED STEELWORKERS AGREED TO RESUME CONTRACT TALKS OCT 14 WITH BOTH SIDES VOWING TO PUSH FOR A SETTLEMENT BY THE END OF THE MONTH THE CURRENT CONTRACT COVERING 14000 USX EMPLOYEES AT SEVEN LOCATIONS EXPIRES AT THE END OF JANUARY EARLIER TALKS ON A NEW AGREEMENT WERE BROKEN OFF IN MARCH THE STEELWORKERS OFFERED THE COMPANY FLEXIBLE WORK RULES AND METHODS OF REDUCING WORK FORCES IN EXCHANGE FOR MORE EMPLOYMENT SECURITY USX'S US STEEL OBJECTED TO THE UNION POSITION ON SUCH ISSUES AS BOARD REPRESENTATION AND COMPANY NEUTRALITY ON ORGANIZING THE UNION HAD HOPED TO MAKE ITS AGREEMENT WITH US STEEL A PATTERN FOR OTHER STEELMAKERS BUT AFTER THE BREAKDOWN OF TALKS THE UNION SWITCHED ITS EFFORTS TOWARD TRYING TO GET THE ACCORD FROM OTHER STEELMAKERS FIRST THE UNION HAS WON CONCESSIONS ON GUARANTEED EMPLOYMENT AND WORKER REPRESENTATION ON BOARDS IN CONTRACTS WITH INLAND STEEL INDUSTRIES INC NATIONAL STEEL CORP WHICH IS ABOUT 70 OWNED BY NKK CORP OF JAPAN BETHLEHEM STEEL CORP AND SOME SMALLER STEEL PRODUCERS 9310040149 931004 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK ROXANNE E SANDY PARKER 40 YEARS OLD WAS ELECTED TREASURER OF THIS PHARMACEUTICAL MEDICALSUPPLY AND FOODPRODUCTS COMPANY MS PARKER WAS ASSISTANT TREASURER OF ARMCO INC SHE SUCCEEDS MILAN KOFOL WHO RESIGNED 9310040148 931004 THREE FOUNDATIONS CRITICIZED ON GRANTS AS ONE DRAWS PRAISE WATCHDOG COMMITTEE SCOLDS GROUPS IN ATLANTA DALLAS SAN DIEGO BUT LAUDS BOSTON BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL A NATIONAL WATCHDOG GROUP CRITICIZED THREE COMMUNITY FOUNDATIONS FOR FAILING TO ADEQUATELY HELP DISENFRANCHISED PEOPLE BUT SINGLED OUT A FOURTH FOUNDATION AS EXEMPLARY THE NATIONAL COMMITTEE FOR RESPONSIVE PHILANTHROPY IN WASHINGTON SCOLDED COMMUNITY FOUNDATIONS IN ATLANTA DALLAS AND SAN DIEGO FOR GIVING LESS THAN ITS RECOMMENDED 50 OR MORE OF TOTAL GRANT DOLLARS TO DISENFRANCHISED PEOPLE SUCH AS THE POOR MINORITIES AND THE DISABLED AT THE SAME TIME THE COMMITTEE PRAISED THE BOSTON FOUNDATION FOR GIVING 66 OF ITS GRANTS TO THE DISENFRANCHISED IN 1990 AND FOR DOING AN INCREASINGLY BETTER JOB EACH YEAR OF ADDRESSING POVERTY FOR THEIR PART THE CRITICIZED CHARITIES NOTED THAT MANY OF THE FOUNDATIONS HAVE BEEN GOING THROUGH TRANSITIONS THAT THE DATA MOSTLY FROM 1991 IS SOMEWHAT DATED AND THAT MUCH OF THEIR ASSETS ARE EARMARKED BY DONORS FOR SPECIFIC CAUSES LIMITING THEIR UNRESTRICTED GRANTMAKING CAPABILITY NONETHELESS SEVERAL OFFICIALS OF THE CHARITIES WELCOMED THE CRITICISM AND ACKNOWLEDGED THAT THERE IS ROOM FOR IMPROVEMENT AN OUTSIDE STUDY BY THE NATIONAL COMMITTEE WITH ITS OWN GOALS AND OBJECTIVES IS VERY HEALTHY SAID ANNA FAITH JONES PRESIDENT OF THE BOSTON FOUNDATION WITH ASSETS OF SOME 276 MILLION IN 1992 IT DOESN'T MEAN YOU HAVE TO MEET THE COMMITTEE'S GOALS BUT YOU BETTER KNOW WHAT YOU'RE DOING AND WHY SHE ADDED COMMUNITY FOUNDATIONS ARE PUBLIC CHARITIES THAT ARE FUNDED BY LOCAL DONORS AND THAT MAKE GRANTS TO LOCAL GROUPS UNLIKE THE UNITED WAY WHICH HOLDS AN ANNUAL DRIVE FOR OPERATING FUNDS THAT ARE THEN METED OUT TO AGENCIES COMMUNITY FOUNDATIONS ACCUMULATE ENDOWMENTS OVER TIME FROM WHICH THEY MAKE GRANTS THERE ARE MORE THAN 400 COMMUNITY FOUNDATIONS IN THE US WITH TOTAL ASSETS OF 9 BILLION THAT MAKE ANNUAL GRANTS OF ABOUT 650 MILLION SAYS THE WATCHDOG GROUP THE FOUR COMMUNITY FOUNDATIONS COVERED BY THE REPORT HAD COMBINED ASSETS OF 675 MILLION AND MADE ALMOST 60 MILLION IN GRANTS IN 1992 THE COMMITTEE ADDED IN GENERAL COMMUNITY FOUNDATIONS ARE AMONG THE FASTESTGROWING PHILANTHROPIES LOGGING AN 11 INCREASE IN ASSETS LAST YEAR AND A 19 INCREASE IN 1991 THE MOST COMMON PROBLEM OF COMMUNITY FOUNDATIONS IS A LACK OF FOCUS SAID ROBERT BOTHWELL EXECUTIVE DIRECTOR OF THE NATIONAL COMMITTEE IF YOU WANT TO HAVE IMPACT YOU HAVE TO BE MORE SELECTIVE AND TARGETED MR BOTHWELL SAID AND AS A MATTER OF FAITH HALF OF A GROUP'S GRANTMAKING SHOULD BE FOR THE DISENFRANCHISED HE ADDED THE FOUR REPORTS RELEASED LAST WEEK BRING TO EIGHT THE NUMBER OF SUCH STUDIES IN 1991 THE NATIONAL COMMITTEE RELEASED REPORTS ON COMMUNITY FOUNDATIONS IN CLEVELAND LOS ANGELES PHILADELPHIA AND SEATTLE OTHER COMMON PROBLEMS CITED IN THE COMMITTEE'S LATEST REPORT INCLUDED LACK OF DIVERSITY ON FOUNDATION STAFF AND BOARDS FAILURE TO TAILOR PUBLICATIONS AND OTHER MATERIALS TO THE DISENFRANCHISED POPULATION AND A FAILURE TO EMPHASIZE FUND RAISING FOR CAUSES THAT AID THE DISENFRANCHISED THE SAN DIEGO COMMUNITY FOUNDATION WAS CHIDED FOR MAKING ONLY 42 OF ITS GRANTS TO THE DISENFRANCHISED IN 1991 AS WELL AS FOR FAILING TO REPRESENT THE DIVERSITY OF ITS COMMMUNITY BUT JOHN RAMSAY WHO RECENTLY BECAME EXECUTIVE DIRECTOR OF THE SAN DIEGO FOUNDATION NOTED THAT MUCH HAS CHANGED SINCE 1991 FOR INSTANCE HE NOTED THAT THE FOUNDATION HAS ADDED MINORITY BOARD MEMBERS AND PROGRAM OFFICERS IN ADDITION MR RAMSAY NOTED THAT 42 IS NOT AN UNIMPRESSIVE NUMBER BUT THAT DOESN'T MEAN ANY OF US ARE SATISFIED AMONG OTHER THINGS THE SAN DIEGO GROUP IS AGGRESSIVELY TARGETING CHILDREN'S AND YOUTHS' CAUSES HE SAID THE METROPOLITAN ATLANTA COMMUNITY FOUNDATION WHICH WAS CRITICIZED FOR SPENDING ONLY 26 OF FISCAL 1991 GRANT DOLLARS ON THE DISENFRANCHISED BALKED AT THE CHARGE THIS IS A CASE OF THE GLASS BEING HALF EMPTY OR HALF FULL SAID ALICIA PHILIPP EXECUTIVE DIRECTOR FOR ONE THING SHE SAYS 95 OF OUR DISCRETIONARY GRANTS DID GO TO THE DISENFRANCHISED BESIDES MS PHILIPP ADDED THE INFORMATION IS NOW FOUR YEARS OLD MS PHILIPP AND SAN DIEGO'S MR RAMSAY SAID THAT MUCH OF A COMMUNITY FOUNDATION'S GRANTMAKING CAN BE RESTRICTED BY DONORS WHO GIVE MONEY ONLY FOR A SPECIFIC CAUSE OFTEN DONORS PICK A MAINSTREAM CAUSE SUCH AS A VISITING NURSES' ASSOCIATION THAT SERVES ALL MEMBERS OF THE COMMUNITY THE NATIONAL COMMITTEE ACTS AS AS AN ADVOCACY GROUP FOR THE INDIGENT AND EVALUATED GRANTS THAT PRIMARILY AIDED THE DISENFRANCHISED FOR HIS PART MR BOTHWELL OF THE NATIONAL COMMITTEE SAID HIS GROUP WORKED FROM PUBLISHED GRANT LISTS SO 1991 WAS THE MOST RECENT AVAILABLE YEAR HE ADDED THINGS DON'T CHANGE THAT MUCH LET ME TELL YOU THE HARSHEST CRITICISM WAS AIMED AT THE COMMUNITIES FOUNDATION OF TEXAS IN DALLAS THE WATCHDOG GROUP BLASTED THE FOUNDATION FOR ITS SECRECY AS WELL AS FOR SPENDING ONLY 29 OF ITS 1991 GRANT DOLLARS ON THE DISENFRANCHISED AN EXECUTIVE OF THE DALLAS FOUNDATION SAID IT HADN'T SEEN THE NATIONAL COMMITTEE REPORT AND THEREFORE COULDN'T COMMENT 9310040147 931004 WHO'S NEWS ECOGEN INC ECOGEN INC LANGHORNE PA THIS AGRICULTURAL BIOTECHNOLOGY COMPANY NAMED ROBERT A FINDER 46 YEARS OLD TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF MANUFACTURING MR FINDER WAS PREVIOUSLY DIRECTOR OF MANUFACTURING AT RHONEPOULENC INC 9310040146 931004 AT&T'S NCR OFFERS EARLYRETIREMENT PLAN TO 5500 US WORKERS DAYTON OHIO NCR CORP SAID IT IS OFFERING EARLY RETIREMENT TO ABOUT 5500 OF ITS 27000 EMPLOYEES IN THE US THE OFFER IS BEING MADE TO EMPLOYEES 50 YEARS OLD OR OLDER WITH AT LEAST 10 YEARS OF SERVICE AS OF DEC 31 IF THEY CHOOSE TO RETIRE EFFECTIVE AT YEAR END THEY WILL RECEIVE ENHANCED RETIREMENT BENEFITS INCLUDING A 30000 LUMPSUM PAYMENT AND IN MOST CASES HEALTHCARE INSURANCE A SPOKESMAN SAID THAT IN A SIMILAR OFFER LAST YEAR TO THE COMPANY'S MARKETING GROUP ABOUT 400 OF 1600 ELIGIBLE EMPLOYEES RETIRED THE LATEST PROGRAM IS EXPECTED TO RESULT IN A CHARGE TO EARNINGS BUT THE AMOUNT CAN'T BE DETERMINED UNTIL THE RESPONSE IS TALLIED HE SAID NCR IS THE INFORMATIONSYSTEMS UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO 9310040145 931004 FITCH TO SEPARATE CREDITCARD OPERATIONS FROM OTHERS IN RATING RETAILERS' DEBT BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FITCH INVESTORS SERVICE INC PLANS TO CHANGE THE WAY IT ASSIGNS DEBT RATINGS TO DEPARTMENTSTORE COMPANIES A DECISION THAT IS LIKELY TO MAKE IT EASIER AND LESS EXPENSIVE FOR SOME OF THEM TO RAISE MONEY IN THE BOND MARKET FITCH A MAJOR CREDITRATING AGENCY IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL BEGIN SEPARATING CREDITCARD OPERATIONS FROM OTHER BUSINESSES WHEN IT RATES DEPARTMENTSTORE CONCERNS THE MOVE BASICALLY IGNORES A 1987 FINANCIAL ACCOUNTING STANDARDS BOARD RULE UNDER THE RULE RETAILERS MUST CONSOLIDATE CREDITCARD OPERATIONS WITH THEIR CORE MERCHANDISING BUSINESS IN ANNUAL FINANCIAL STATEMENTS FITCH CONTENDS THAT THE RULE MAKES FINANCIAL RATIOS OF THESE COMPANIES MISLEADING BY MIXING APPLES WITH ORANGES ACCORDING TO WAYNE JOSEPHSON A RETAIL ANALYST AT THE RATING AGENCY FITCH'S ACTION IS LIKELY TO LEAD TO HIGHER DEBT RATINGS FOR SEVERAL RETAIL COMPANIES SUCH AS NORDSTROM INC AND MERCANTILE STORES CO ALTHOUGH FITCH IS LESS WELLKNOWN THAN THE TWO BIGGEST RATING AGENCIES STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC ITS RATINGS STILL AFFECT HOW ATTRACTIVE A COMPANY'S BONDS ARE TO INVESTORS FOR THEIR PART S&P AND MOODY'S DON'T PLAN TO CHANGE THE WAY THEY RATE DEPARTMENT STORES BOTH USUALLY CONSOLIDATE CREDITCARD OPERATIONS WITH OTHER BUSINESSES ALTHOUGH THEY DO CONSIDER THE CREDITCARD UNIT SEPARATELY FITCH CURRENTLY RATES THE BONDS OF JC PENNEY CO AS A PLUS WHICH IS ONE OF THE HIGHEST RATINGS FOR DEPARTMENT STORES ACCORDING TO ROBERT GROSSMAN EXECUTIVE VICE PRESIDENT OF FITCH RESPONSIBLE FOR BOND RATINGS FOR CORPORATE ISSUERS STRIPPING CREDITCARD OPERATIONS FROM PENNEY BOOSTS THE DEPARTMENTSTORE COMPANY'S FINANCIAL SITUATION HE SAID THIS CERTAINLY STRENGTHENS OUR A PLUS RATING AND RANKS PENNEY AMONG THE BEST PERFORMERS OF ALL RETAILERS INCLUDING DISCOUNTERS AND SPECIALTY STORES MR GROSSMAN SAID AS FOR SEARS ROEBUCK & CO IT APPEARS THAT THE IMPROVEMENT FOR SEARS'S FINANCIAL POSITION BY STRIPPING CREDIT CARDS ISN'T AS GREAT AS IT IS FOR PENNEY'S MR JOSEPHSON SAID THIS IS BECAUSE OF THE LARGE AMOUNT OF CREDITCARD RECEIVABLES THAT SEARS SECURITIZES HE SAID OTHER DEPARTMENT STORES ALSO SHOW IMPROVED DEBT LEVERAGE AFTER FITCH STRIPS THEIR CREDITCARD OPERATIONS FROM CONSOLIDATED FINANCIAL STATEMENTS INCLUDING DILLARD DEPARTMENT STORES INC FEDERATED DEPARTMENT STORES INC AND MAY DEPARTMENT STORES CO IN RESPONSE TO FITCH'S CRITICISM OF THE FASB'S RULE ON CONSOLIDATION OF FINANCIAL INFORMATION RONALD LOTT AN FASB PROJECT MANAGER SAID THAT IT'S OUR OBJECTIVE TO PROVIDE MORE INFORMATION FOR FINANCIALSTATEMENT USERS NOT TO TELL THEM HOW TO USE IT MR LOTT SAID THAT SINCE EACH USER MAY HAVE DIFFERENT NEEDS IT'S FITCH'S PRIVILEGE TO DECIDE WHICH FINANCIAL DATA ARE MOST RELEVANT FOR ITS RATINGS 9310040144 931004 TECHNOLOGY INTEL WILL ADD EMBEDDED CHIP TO ITS 386 LINE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF INTEL CORP PLANS TO BREATHE NEW LIFE INTO ITS FORMER FLAGSHIP MICROPROCESSOR THE 386 BY SELLING A LOWCOST VERSION FOR SOCALLED EMBEDDED APPLICATIONS FOR USE AS THE BRAINS OF EQUIPMENT SUCH AS COPIERS FAX MACHINES AND CELLULAR PHONES INTEL WILL ANNOUNCE TODAY THAT IT IS SHIPPING SAMPLES OF AN EMBEDDED VERSION OF THE CHIP CALLED THE 386CX THAT WILL GO INTO HIGHVOLUME PRODUCTION IN 1994 ANOTHER CHIP THE 386EX WILL SHIP IN HIGH VOLUME LATE NEXT YEAR AND WILL COMBINE THE 386'S CIRCUITS WITH OTHER PERIPHERAL CIRCUITS THAT MAKE IT MORE EASILY ADOPTED BY USERS OF INTEL'S OLDER EMBEDDED CHIPS THE MARKET FOR EMBEDDED MICROPROCESSORS WHICH GO INTO EVERYTHING FROM VIDEO CASSETTE RECORDERS AND CAR ENGINES TO MISSILES IS HUGE WHILE AVERAGE SELLING PRICES ARE LOWINTEL SAID ITS EMBEDDED 386 CHIPS WILL LIST FOR BETWEEN 20 AND 40 VERSUS THE HUNDREDS OF DOLLARS IT CHARGES FOR ITS FLAGSHIP 486 CHIPS FOR PERSONAL COMPUTERSCOMPANIES CAN MAKE HANDSOME PROFITS OVER MANY YEARS WITH OLDER CHIP DESIGNS BY SELLING HUGE VOLUMES OF CHIPS THAT HAVE ALREADY PAID FOR THEMSELVES AT HIGHER PRICES IN THE COMPUTER MARKETPLACE INTEL'S EMBEDDED 386 CHIPS WILL BEGIN TO REPLACE AN EMBEDDED CHIP THE 186 WHICH INTEL HAS BEEN SELLING FOR MORE THAN EIGHT YEARS AT A RATE OF MORE THAN 10 MILLION CHIPS A YEAR FROM OUR POINT OF VIEW THIS THING IS VERY SWEET SAID KENNETH FINE GENERAL MANAGER OF INTEL'S SEMICONDUCTOR PRODUCTS GROUP WE SEE THE ROAD TO A NICE FINANCIAL CONTRIBUTION FROM THEM AT A RELATIVELY LOW COST TO PARTICIPATE INTEL EXPECTS THE MORE POWERFUL 386 EMBEDDED CHIP TO APPEAL TO MAKERS OF EQUIPMENT SUCH AS TELECOMMUNICATIONS GEAR AND CABLETELEVISION BOXES FOR INTERACTIVETV USES AND ALREADY HAS CUSTOMERS WHO PLAN TO USE THE CHIP IN THINGS LIKE SMART COPIERS THAT ARE EASIER TO USE THAN CURRENT MODELS MR FINE SAID INTEL HAS STIFF COMPETITION IN THE EMBEDDEDCHIP MARKET FROM COMPANIES SUCH AS MOTOROLA INC AND NEWCOMERS SUCH AS SILICON GRAPHICS INC ARE AIMING AT THOSE MARKETS AS WELL 9310040143 931004 TWENTYTHREE FIRMS VIE TO BUILD TAIWAN'S FIRST SATELLITE PROJECT TAIPEI TAIWAN TWENTYTHREE INTERNATIONAL SPACE COMPANIES ARE VYING FOR A CHANCE TO BUILD THE SPACECRAFT OF TAIWAN'S FIRST SATELLITE THE GOVERNMENT'S NATIONAL SPACE PROGRAM OFFICE SAID DONALD CHANG MANAGER OF THE AGENCY'S SYSTEMENGINEERING DIVISION SAID THE NSPO WILL SELECT A US OR EUROPEAN COMPANY AS SUPPLIER OF THE SPACECRAFT BY THE END OF NEXT FEBRUARY HE ESTIMATED TOTAL COSTS FOR THE FIRST PHASE OF THE PROGRAM INCLUDING THE SPACECRAFT PAYLOAD AND LAUNCHING WILL BE EIGHT BILLION NEW TAIWAN DOLLARS US3002 MILLION THE COMPANIES FROM THE US FRANCE RUSSIA JAPAN ISRAEL AND SWEDEN ATTENDED THE PROGRAM'S BIDDER'S CONFERENCE EARLIER THIS YEAR MR CHANG SAID THE GOVERNMENT HAS RULED OUT THE PARTICIPATION OF JAPANESE FIRMS BECAUSE OF CONCERNS ABOUT TAIWAN'S HUGE TRADE DEFICIT WITH JAPAN WHICH TOTALED US93 BILLION FOR THE FIRST EIGHT MONTHS OF THIS YEAR UNDER A 15YEAR PROGRAM TAIWAN WILL LAUNCH ITS FIRST SATELLITE THE LIGHTWEIGHT ROCSAT 1 BY 1997 THE GOVERNMENT HAS BUDGETED NT136 BILLION TO BUILD THREE SATELLITES FOR SCIENTIFIC AND CIVILIAN PURPOSES 9310040142 931004 SMITHKLINE BEECHAM HALTS OUTPUT SALES OF SOFT DRINK LINE SPECIAL TO THE WALL STREET JOURNAL LONDON SMITHKLINE BEECHAM PLC HAS HALTED PRODUCTION AND DISTRIBUTION OF SOME OF ITS LUCOZADE SOFT DRINKS PRODUCTS AFTER FINDING SOME OF THE BOTTLES ARE DEFECTIVE THE BRITISH PHARMACEUTICAL AND CONSUMER GOODS MANUFACTURER AND DISTRIBUTOR SAID THAT ONLY A SMALL NUMBER OF BOTTLES WERE AFFECTED BUT THAT ALL PRODUCTION OF 250 AND 300 ML BOTTLES WILL BE HALTED UNTIL THE COMPANY IS SATISFIED THAT THE PROBLEM HAS BEEN RECTIFIED THE COMPANY FOUND THAT SOME BOTTLES CRACK AT THE NECK WHEN OPENED THE PRODUCT ACCOUNTS FOR SALES OF SOME 12 MILLION BOTTLES A YEAR OR 100 MILLION 1498 MILLION IN SALES A THIRD OF SMITHKLINE'S DRINKS SALES A COMPANY SPOKESMAN SAID THAT IT CERTAINLY IS GOING TO AFFECT OUR SALES BUT IT WON'T BE MATERIAL IN TERMS OF OUR OVERALL NUMBERS SALES FOR ALL OF SMITHKLINE'S PRODUCTS TOPPED 5 BILLION FOR 1992 9310040141 931004 BELL ATLANTIC CLOSE TO PACT ON PURCHASE OF STAKE IN MEXICO CELLULARPHONE FIRM BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY BELL ATLANTIC CORP IS CLOSE TO AGREEING TO BUY A MINORITY STAKE IN A FASTGROWING MEXICAN CELLULARTELEPHONE COMPANY FOR AS MUCH AS 1 BILLION ACCORDING TO PEOPLE INVOLVED IN THE DISCUSSIONS THE AGREEMENT WOULD GIVE BELL ATLANTIC A REGIONAL US TELEPHONE COMPANY A FOOTHOLD IN THE POTENTIALLY VAST MARKET FOR TELEPHONE SERVICES IN MEXICO AND COULD TOUCH OFF MORE COMPETITION IN ONE OF THE WORLD'S NEEDIEST PHONE MARKETS AN INVESTMENT ON THE ORDER OF 1 BILLION WOULD ALSO CONTINUE MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI'S EFFORTS TO OPEN THE ECONOMY UP AS RAPIDLY AS POSSIBLE TO PRIVATE INVESTMENT AN INVESTMENT BY BELL ATLANTIC WOULD PROVIDE MUCHNEEDED FUNDS TO THE MEXICAN CELLULAR COMPANY IUSACELL WHICH HAS BEEN TRYING TO EXPAND RAPIDLY BUT HAS FALLEN BEHIND TELEFONOS DE MEXICO WHICH HAS A MONOPOLY ON WIREBASED TELEPHONE SERVICE IN MEXICO BEYOND THE MONEY IUSACELL COULD BENEFIT FROM THE THE US COMPANY'S EXPERIENCE WITH CELLULAR TECHNOLOGY A BELL ATLANTIC SPOKESWOMAN DECLINED COMMENT AS DID A SPOKESMAN FOR IUSACELL A UNIT OF FAMILYOWNED IUSA DETAILS ARE STILL SKETCHY BECAUSE A FINAL ACCORD HASN'T BEEN REACHED IN FACT AN ANNOUNCEMENT HAS BEEN POSTPONED A COUPLE OF TIMES BECAUSE OF LASTMINUTE SNAGS BUT AN ANNOUNCEMENT IS EXPECTED THIS WEEK OR NEXT WEEK ACCORDING TO PEOPLE INVOLVED WITH THE TALKS THE PLAN IS STILL FOR BELL ATLANTIC TO BUY AS MUCH AS 49 OF IUSACELL AND PAY AROUND 1 BILLION ALTHOUGH THAT PRICE WOULD OBVIOUSLY DROP IF BELL ATLANTIC BOUGHT SIGNIFICANTLY LESS THAN 49 THE MARKET FOR CELLULAR SERVICES IN MEXICO IS POTENTIALLY HUGE BECAUSE THE WIREBASED SERVICES PROVIDED BY TELEFONOS DE MEXICO OR TELMEX ARE SO UNRELIABLE PHONE CALLS USING TELMEX CAN BECOME CONFERENCE CALLS WHEN THE SYSTEM ACCIDENTALLY PATCHES ANOTHER CALLER INTO THE CONVERSATION LINES GO DEAD FOR DAYS AT A TIME CALLING SOMEONE CAN TAKE SEVERAL TRIES BEFORE THE CALL GOES THROUGH AT LEAST TO THE RIGHT PERSON A COMMON GREETING IN MEXICO IS WHO HAVE I REACHED THE NEED FOR CELLULAR SERVICES IS MOST PRONOUNCED IN MEXICO CITY THE AREA THAT IUSACELL IS AUTHORIZED TO SERVE SOMEONE WANTING TO MAKE AN EMERGENCY CALL NOWADAYS MIGHT HAVE TO TRY FOUR OR FIVE PUBLIC PHONES BEFORE FINDING ONE THAT WORKS CELLULAR COMPANIES WHOSE NEW NETWORKS OF ANTENNAS DON'T DEPEND ON THE ANTIQUATED WIRES AND SWITCHES OF TELMEX HAVE GONE FROM NIL FOUR YEARS AGO TO SOME 320000 SUBSCRIBERS NATIONWIDE TODAY IN ADDITION CELLULAR PHONE BUYERS USE THEM 2540 MORE THAN DO USERS IN THE US MOREOVER THERE ARE STILL JUST ABOUT EIGHT PHONE LINES PER 100 PEOPLE IN MEXICO AND PROGRESS IN ADDING LANDBASED PHONE LINES HAS BEEN SLOW IT CAN TAKE YEARS TO GET A PHONE LINE ADDED HERE IUSACELL GOT OFF TO A FAST START IN THE CELLULAR MARKET BECAUSE OF A FORTUITOUS DEAL THE FAMILY COMPANY REACHED WITH THE GOVERNMENT DECADES AGO SAYS JACK GRUBMAN A SECURITIES ANALYST WITH PAINE WEBBER HE SAYS THE PARENT COMPANY IUSA A CONGLOMERATE THAT INCLUDES CHEMICAL AND CEMENT BUSINESSES RECEIVED SOME RADIO LICENSES FROM THE GOVERNMENT IN THE 1940S AND SOMEHOW ALSO GOT A PROMISE THAT IT WOULD GET ADDITIONAL LICENSES WHENEVER IT NEEDED THEM TO TAKE ADVANTAGE OF ANY NEW RADIO TECHNOLOGIES WHEN CELLULAR PHONES BECAME POSSIBLE IUSACELL CLAIMED ITS RIGHTS IMMEDIATELY AND THUS MANAGED TO GET STARTED IN THE CELLULAR MARKET IN 1989 WELL BEFORE TELMEX IUSACELL'S GROWTH HAS BEEN SPECTACULAR IT INSTALLED SIX TIMES AS MANY CELLULAR SYSTEMS IN THE FIRST TWO YEARS AS IT HAD EXPECTED AND GREW 90 LAST YEAR TO ABOUT 130 MILLION IN REVENUE HOWEVER THE COMPANY IS STILL UNPROFITABLE AND HAS HAD TROUBLE MANAGING ITS EXPANSION TELMEX CURRENTLY HAS WON 60 OF THE CELLULAR MARKET WHILE IUSACELL HAS ABOUT 25 MR GRUBMAN ESTIMATES TELMEX'S CELLULAR BUSINESS ACCOUNTS FOR ONLY 13 OF ITS REVENUE SO THE COMPETITIVE THREAT FROM IUSACELL ISN'T PARTICULARLY WORRISOME AT THIS POINT BUT A BELL ATLANTIC INVESTMENT WOULD POSITION IT TO TAKE ADVANTAGE OF ANY OPENING THE GOVERNMENT ALLOWS OVER THE NEXT FEW YEARS IN THE TELEPHONE MARKET AND MIGHT EVENTUALLY LET BELL ATLANTIC PARTICIPATE IN THE GENERAL LONGDISTANCE BUSINESS IN MEXICO SOME OF THE REGIONAL TELEPHONE COMPANIES IN THE US HAVE BEEN EYEING MEXICO FOR SOME TIME SOUTHWESTERN BELL CORP FOR INSTANCE BOUGHT 10 OF TELMEX AND AN INVESTMENT WOULD FIT WITH BELL ATLANTIC'S REPUTATION AS ONE OF THE MOST AGGRESSIVE OF THE BELL OPERATING COMPANIES 9310040140 931004 WHO'S NEWS QUADREX CHIEF QUITS FOLLOWING SERIES OF LOSSES BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL QUADREX CORP STRUGGLING WITH A NEW TECHNOLOGY AND A STRING OF QUARTERLY LOSSES SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM B DERRICKSON RESIGNED MR DERRICKSON 53 YEARS OLD JOINED QUADREX IN 1989 WHILE HE HELPED PULL THE ENGINEERING AND WASTEMANAGEMENT CONCERN OUT OF A TAILSPIN ITS SHARE PRICE ROSE TO ALMOST 20 LAST YEAR FROM 1 AT ABOUT THE TIME OF HIS ARRIVAL THE COMPANY HAS BEEN STYMIED IN ITS EFFORTS TO MARKET ITS MUCHTOUTED PROCESS FOR TURNING WASTE MATTER INTO ETHANOL FUEL AT THE SAME TIME QUADREX'S CORE OPERATIONS PRIMARILY RADIOACTIVE WASTE DISPOSAL HAVE BEEN SLUMPING FOR THE FIRST SIX MONTHS THE COMPANY REPORTED A NET LOSS AFTER ONETIME CHARGES OF 113 MILLION OR 94 CENTS A SHARE ON REVENUE OF 185 MILLION THAT COMPARED WITH EARNINGS OF 416000 OR THREE CENTS A SHARE ON REVENUE OF 22 MILLION A YEAR EARLIER QUADREX BASED IN GAINESVILLE FLA AND MR DERRICKSON SAID HIS DECISION TO LEAVE WAS REACHED BY MUTUAL AGREEMENT WE NEED TO GET THE COMPANY TURNED AROUND AND GET THE ETHANOL PROGRAM ON A POSITIVE TRACK SAID RUSSELL J HAMMER 40 THE COMPANY'S PRESIDENT AND CHIEF FINANCIAL OFFICER WHO WAS NAMED ACTING CHIEF EXECUTIVE SAID MR DERRICKSON IN AN INTERVIEW FRIDAY THINGS HAVEN'T GONE EXACTLY TO PLAN NO MATTER WHAT THE TEAM DOES THE MANAGER IS THE GUY THAT TAKES THE HIT QUADREX HOLDS THE EXCLUSIVE LICENSING RIGHTS TO A PROCESS DEVELOPED AT THE UNIVERSITY OF FLORIDA TO TURN WASTE PAPER PULPMILL SLUDGE AND SUGARCANE WASTE INTO ETHANOL AN ALTERNATIVE TO GASOLINE BUT DEVELOPMENT OF THE TECHNOLOGY DRAINED 13 MILLION FROM THE COMPANY IN THE PAST THREE YEARS WITHOUT ANY RESULTS SAID STEPHEN WEINRESS A BOARD MEMBER AND INVESTMENT BANKER IN NEWPORT BEACH CALIF THE COMPANY HAD HOPED TO HAVE A PLANT CONVERTING SUGARCANE WASTE TO ETHANOL UP AND RUNNING IN BRAZIL THIS SUMMER BUT ITS BRAZILIAN PARTNER DROPPED OUT OF THE DEAL AFTER FAILING TO COME UP WITH FINANCING QUADREX HAD ALSO HOPED TO OPEN A MIAMI PLANT TO CONVERT WASTE PAPER TO ETHANOL BY THIS YEAR BUT THAT PROJECT HAS BEEN DELAYED BY CONTINUING EFFORTS TO LOWER THE COST OF THE TECHNOLOGY MR DERRICKSON SAIDMEANWHILE THE COMPANY'S CORE OPERATIONS BEGAN TO SUFFER QUADREX SAID IT PLANS TO CONTINUE ITS ETHANOL PROGRAM BUT WILL FOCUS FIRST ON AGRICULTURALWASTE PROJECTS WHICH ARE FURTHER DEVELOPED THAN WASTEPAPER CONVERSION THE COMPANY IS STILL CONSIDERING SELLING ITS HAZARDOUSWASTE TREATMENT BUSINESS WHICH IT ANNOUNCED IN AUGUST AS A WAY TO RAISE CASH FOR DEVELOPMENT OF THE ETHANOL BUSINESS AND THE COMPANY SAID FRIDAY IT SECURED A 3 MILLION FINANCING COMMITMENT FROM INTERNATIONAL CAPITAL PARTNERS INC STAMFORD CONN THE COMPANY APPOINTED JAMES E WHITNEY 34 AS ACTING CHIEF FINANCIAL OFFICER MR WHITNEY HAS SERVED AS CONTROLLER IN NATIONAL OVERTHECOUNTER TRADING FRIDAY QUADREX WAS UNCHANGED AT 4375 9310040139 931004 ARCH COMMUNICATIONS SAYS CASH FLOW ROSE MORE THAN 15 IN ITS 4TH PERIOD BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL ARCH COMMUNICATIONS GROUP INC EXPECTS TO REPORT THAT ITS CASH FLOW A MEASURE OF PERFORMANCE FOR PAGER COMPANIES ROSE MORE THAN 15 IN THE FOURTH QUARTER ENDED AUG 31 PUTTING IT AT THE HIGH END OF ANALYSTS' EXPECTATIONS WE'RE COMFORTABLE WITH THE HIGH END OF ESTIMATES CE BAKER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW ANALYSTS' ESTIMATES OF CASH FLOW FOR THE QUARTER DEFINED AS EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION ARE AS MUCH AS 31 MILLION COMPARED WITH 26 MILLION A YEAR EARLIER HE SAID HE IS COMFORTABLE WITH ESTIMATES THAT REVENUE IN THE FOURTH QUARTER GREW ABOUT 40 FROM THE YEAREARLIER 96 MILLION THE GROWTH REFLECTS BOTH AN ACQUISITION AND EXPANSION OF ARCH'S CUSTOMER BASE TO 254500 AT THE END OF THE QUARTER FROM 160000 THE YEAR BEFORE THAT 60 GROWTH RATE CAME FROM EXISTING OPERATIONS ADDING 70000 NEW SUBSCRIBERS AND ACQUISITIONS CONTRIBUTING 24500 HE SAID MR BAKER SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT ARCH WHICH IS BASED IN WESTBOROUGH MASS WILL INCREASE TO MORE THAN 350000 SUBSCRIBERS NEXT YEAR WE HAVE HAD THE BEST YEAR IN THE COMPANY'S HISTORY IN TERMS OF GROWTH RATES HE SAID HE SAID ARCH HAS BECOME THE 10TH BIGGEST PAGER COMPANY IN THE COUNTRY AND WE'RE GENERALLY RECOGNIZED AS THE SECOND FASTEST GROWING AFTER INDUSTRY LEADER PAGENET ARCH LIKE MANY PAGER CELLULAR AND CABLETELEVISION COMPANIES REPORTS NET LOSSES AS IT GROWS RAPIDLY IN PART THAT'S BECAUSE ARCH SPENDS ALMOST 100 TO ACQUIRE EACH NEW SUBSCRIBER BUT GETS ONLY ABOUT 170 A YEAR IN REVENUE MAKING THE FIRST YEAR FOR A NEW SUBSCRIBER UNPROFITABLE HOWEVER SUBSCRIBERS TYPICALLY USE THE SERVICE FOR MORE THAN FIVE YEARS JUSTIFYING THE EXPENSE TO WIN A SOURCE OF REVENUE THE REAL MAGIC IS THE RECURRING NATURE OF REVENUE HE SAID WILLIAM A WILSON ARCH'S VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID OTHER FACTORS ALSO CAUSE NET LOSSES FOR EXAMPLE MOST OF ARCH'S CAPITAL EQUIPMENT INCLUDING THE PAGERS IT LEASES TO CUSTOMERS ARE DEPRECIATED IN LESS THAN FIVE YEARS EVEN THOUGH THEY MAY HAVE 10YEAR LIVES AMORTIZING GOODWILL FROM ACQUISITIONS ALSO CAUSES NET LOSSES EVEN THOUGH IT DOESN'T AFFECT CASH FLOW HE SAID MR BAKER SAID ARCH'S FOURTHQUARTER NET LOSS WIDENED FROM THE YEAREARLIER LOSS OF 13 MILLION OR 19 CENTS A SHARE HE DECLINED TO BE MORE SPECIFIC FOR THE FULL YEAR MR BAKER SAID ARCH IS COMFORTABLE WITH THE HIGH END OF ANALYSTS' ESTIMATES THAT PEG CASH FLOW AT 111 MILLION THAT WOULD BE UP 13 FROM FISCAL 1992 ENDED AUG 31 WHEN ARCH REPORTED CASH FLOW OF 98 MILLION HE SAID REVENUE FOR THE YEAR GREW 30 FROM 352 MILLION A YEAR EARLIER THE NET LOSS FOR THE YEAR NARROWED FROM THE YEAREARLIER 66 MILLION OR 109 A SHARE HE ADDED ARCH WHICH COVERS THE NEW ENGLAND STATES AND NEW YORK AND ALSO OWNS PAGER SYSTEMS IN THE SOUTHEAST AND MICHIGAN MADE FOUR ACQUISITIONS IN THE PAST YEAR THE LARGEST A MAINE PAGER COMPANY ADDED 17500 SUBSCRIBERS TO THE ROLLS IN MIDAUGUST CONTRIBUTING LITTLE TO FISCAL 1993 MR BAKER SAID 9310040138 931004 WHO'S NEWS SMALL'S OILFIELD SERVICES CORP SMALL'S OILFIELD SERVICES CORP BIG SPRING TEXAS KENNETH C BOOTHE FORMERLY FINANCIAL VICE PRESIDENT OF THIS OIL FIELD RENTAL EQUIPMENT COMPANY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BOOTHE 48 YEARS OLD SUCCEEDS 62YEAROLD CARL W SMALL WHO RESIGNED BECAUSE OF ILLNESS 9310040137 931004 BUSINESS BRIEF RIVERWOOD INTERNATIONAL CORP COMPANY EXPECTS CHARGE TO RESULT IN 3RDPERIOD LOSS RIVERWOOD INTERNATIONAL CORP SAID IT EXPECTS TO POST A LOSS FOR ITS THIRD QUARTER AS A RESULT OF TAKING A ONETIME CHARGE OF 5 MILLION OR EIGHT CENTS A SHARE TO ADJUST EXISTING DEFERRED TAX ACCOUNTS BECAUSE OF RECENT CHANGES IN TAX REGULATIONS THE ATLANTA PAPERBOARD AND PACKAGING CONCERN 815OWNED BY MANVILLE CORP DENVER REPORTED NET INCOME OF 78 MILLION OR 13 CENTS A SHARE FOR ITS THIRD QUARTER ENDED SEPT 26 1992 ON 3012 MILLION IN SALES RIVERWOD STOCK FELL 25 CENTS TO 13 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE RIVERWOOD ALSO SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A SECONDARY OFFERING BY THE MANVILLE PERSONAL INJURY SETTLEMENT TRUST OF 375 MILLION OF RIVERWOOD'S 1075 SENIOR NOTES DUE 2000 AND 625 MILLION OF 1125 SENIOR SUBORDINATED NOTES DUE 2002 PROCEEDS FROM THE OFFERING WILL GO TO THE TRUST 9310040136 931004 CASINO FIRMS PLAN JOINT VENTURE LOS ANGELES CAESARS WORLD INC AND CASINO MAGIC CORP BAY ST LOUIS MO SAID THEY WILL FORM A JOINT VENTURE FOR A PROPOSED DOCKSIDE RIVERBOAT CASINO AND ENTERTAINMENT COMPLEX IN ST LOUIS THE GAMBLING CONCERNS SAID THE VENTURE WOULD INCLUDE A GROUP OF ST LOUIS INVESTORS WHO ARE EXPECTED TO HOLD A 25 INTEREST THE PARTNERS PLAN TO SUBMIT A BID TO THE CITY OF ST LOUIS OCT 18 FOR A PROJECT AT LACLEDES LANDING WHICH WOULD COST AN ESTIMATED 60 MILLION TO 80 MILLION 9310040135 931004 DATA ON OCCUPATIONAL DEATHS MAY SPUR US TO RENEW PUSH FOR SEATBELT USE BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LABOR DEPARTMENT SAID IT MIGHT RENEW A PUSH TO REQUIRE ONTHEJOB SEAT BELTS AFTER A NEW STUDY FOUND THAT NEARLY 40 OF OCCUPATIONAL DEATHS IN 1992 WERE TRANSPORTATIONRELATED OF 6083 ONTHEJOB FATALITIES REPORTED LAST YEAR 1121 OR 18 WERE HIGHWAY ACCIDENTS OTHER TRANSPORTATION ACCIDENTS SUCH AS THOSE INVOLVING FARM EQUIPMENT AIRCRAFT AND BOATS AS WELL AS PEDESTRIANS GETTING HIT BY VEHICLES ACCOUNTED FOR 1304 DEATHS OR MORE THAN 21 OF THE TOTAL ANOTHER LEADING CAUSE OF ONTHEJOB DEATHS HOMICIDE SECOND TO HIGHWAY ACCIDENTS AT 17 MURDERS ACCOUNTED FOR 59 OF THE 497 FATALITIES AMONG SALES WORKERS AND 40 OF THE 426 WOMEN KILLED AT WORK LAST YEAR HOWEVER WOMEN WERE ONLY 7 OF THE TOTAL ONTHEJOB FATALITIES MEN WHO MAKE UP 55 OF THE 120 MILLIONMEMBER WORK FORCE ACCOUNTED FOR 93 OF OCCUPATIONAL DEATHS OFFICIALS SAID THAT COULD BE EXPLAINED BY THE LARGER NUMBER OF MEN WORKING IN HIGHERRISK INDUSTRIES THE FIGURES WERE RELEASED BY THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS IN THE FIRST NATIONAL CENSUS OF FATAL OCCUPATIONAL INJURIES THIS NEW DATA WILL PROVE VERY USEFUL TO THE DEPARTMENT OF LABOR AS WE WORK WITH OUR EMPLOYERS WORKERS AND HEALTH AND SAFETY PROFESSIONALS TO MAKE OUR NATION'S WORKPLACES SAFER LABOR SECRETARY ROBERT REICH SAID OTHER CAUSES OF DEATH INCLUDED BEING HIT BY OR CAUGHT IN EQUIPMENT 16 FALLS 10 EXPOSURE TO HARMFUL SUBSTANCES 10 FIRES AND EXPLOSIONS 3 AND SUICIDES 3 JOSEPH KINNEY OF THE NATIONAL SAFE WORKPLACE INSTITUTE IN CHICAGO SAID THAT DUE TO INADEQUATE SOURCES THE GOVERNMENT'S NUMBERS MAY UNDERESTIMATE JOB SAFETY PROBLEMS HE SAID COMPREHENSIVE SAFETY REGULATIONS AND INFORMATION REPORTING ARE NEEDED THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION FIRST LOOKED AT ONTHEJOB SEAT BELT REQUIREMENTS IN JULY 1990 BUT NEVER FINALIZED ANY RULES LABOR DEPARTMENT OFFICIALS SAID THE FIGURES COULD INSPIRE NEW SAFETY EFFORTS MULTIPLE REPORTING SOURCES SUCH AS DEATH CERTIFICATES CORONER'S RECORDS AND NEWS REPORTS WERE USED TO COMPILE DATA BECAUSE THE REPORT SAID NO ONE SOURCE WAS COMPLETE ENOUGH ADDITIONAL INDEPENDENT SOURCES WERE USED TO MAKE SURE THE FATALITIES OCCURRED AT WORK 9310040134 931004 GM'S SMITH FACES CRUCIAL TEST TODAY ON WHETHER TO TAKE UAW PATTERN DEAL BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT JOHN F SMITH JR PRESIDENT OF GENERAL MOTORS CORP FACES A CRUCIAL TEST TODAY IN HIS CAMPAIGN TO TURN AROUND THE NO 1 AUTO MAKER'S UNPROFITABLE NORTH AMERICAN OPERATIONS WITH UAW LEADERS INSISTING THAT GM ACCEPT THE SAME PATTERN AGREEMENT CHRYSLER CORP ACCEPTED FRIDAY GM OFFICIALS SAY MR SMITH AND GM'S NONEMPLOYEE DIRECTORS TODAY MUST DECIDE WHAT TO DO TO BLUNT THE HIGH COSTS OF THE PACT AMONG THE OPTIONS CONFRONT THE UNION HEAD ON TRY TO MAKE THE BEST OF THE PATTERN PACT BY EXPLOITING MONEYSAVING LOOPHOLES OR SIGN A PATTERN DEAL BUT THEN BROADEN DRAMATICALLY MOVES TO SHRINK THE UAW WORK FORCE AND THE COMPANY BY UNLOADING MORE PARTS AND NONAUTOMOTIVE OPERATIONS PREVIOUSLY GM HAS TARGETED FOR SALE PARTS OPERATIONS WITH ABOUT 3 BILLION IN ANNUAL SALES OR ABOUT 13 OF GM'S TOTAL PARTS BUSINESS GM OFFICIALS HAVE CONSIDERED OTHER MOVES INCLUDING OFFERING THE UAW STOCK IN RETURN FOR CONCESSIONS BUT IT ISN'T CONSIDERED LIKELY THAT SUCH AN OFFER WILL EMERGE FROM TODAY'S BOARD SESSION WHAT IS CLEAR IS THAT MR SMITH FACES ENORMOUS PRESSURE FROM HIS BOARD AND FROM WALL STREET NOT SIMPLY TO SWALLOW A LABOR PATTERN THAT ANALYSTS AND GM EXECUTIVES AGREE COULD SLOW GM'S SCRAMBLE TO MAKE ITS NORTH AMERICAN OPERATIONS COMPETITIVE AFTER 17 BILLION IN LOSSES SINCE 1990 FEAR THAT ADROIT UAW BARGAINING STRATEGY HAS BACKED MR SMITH INTO A CORNER PROMPTED A SELLOFF IN GM'S STOCK LAST WEEK GM COMMON SHARES REBOUNDED SOMEWHAT FRIDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CLOSING AT 4250 UP 75 CENTS ON VOLUME OF 43 MILLION SHARES BUT THEY WERE STILL DOWN 275 A SHARE FROM LAST MONDAY'S LEVEL THE CONTRACT PATTERN INITIALLY NEGOTIATED BY THE UAW AND FORD MOTOR CO CALLS FOR LOWER WAGES FOR STARTING WORKERS BUT EXPANDS PROGRAMS THAT PAY PRACTICALLY FULL WAGES TO LAIDOFF WORKERS SWEETENS PENSIONS AND CONTINUES MEDICAL BENEFITS WITHOUT COPAYMENTS CHRYSLER'S AND FORD'S AGREEMENT TO EXPAND JOB AND INCOMESECURITY FUNDS WILL MEAN LITTLE COST TO THEM BUT WILL HIT GM HARD THE COMPANY'S PLANS TO IMPLEMENT LEAN PRODUCTION METHODS IN ITS FACTORIES AND NARROW AN ESTIMATED 2000 PER VEHICLE LABORCOST DISADVANTAGE WITH FORD COULD RESULT IN THE ELIMINATION OF AS MANY AS 65000 MORE HOURLY JOBS DURING THE NEXT THREE YEARS GM SPENT CLOSE TO 335 BILLION ON PAYMENTS TO IDLED WORKERS DURING THE PAST THREE YEARS MR SMITH BY NATURE A COLLEGIAL PROBLEM SOLVER IS SAID BY SUBORDINATES TO BE RELUCTANT TO PROVOKE A BATTLE WITH THE UAW BUT HIS SEARCH FOR A MIDDLE PATH BETWEEN THE EXTREMES OF CONFRONTATION AND CAPITULATION HAS PROVEN DIFFICULT THESE PROBLEMS WEREN'T CREATED OVERNIGHT AND THEY WON'T BE SOLVED OVERNIGHT SAID ONE SENIOR GM EXECUTIVE LAST WEEK IT'S NAIVE TO LOOK FOR MAGICAL SOLUTIONS THE BIGGEST PROBLEM IS THAT EVERY SOLUTION COMES WITH AN ENORMOUS PRICE TAG GM HAS CONSIDERED OFFERING ANOTHER MASSIVE EARLY RETIREMENT PROGRAM EARLY NEXT YEAR ESSENTIALLY TO PAY UAW MEMBERS TO QUIT BUT SUCH PROGRAMS COST HUNDREDS OF MILLIONS OF DOLLARS AND WOULD ALMOST CERTAINLY EXPAND GM'S HUGE UNFUNDED PENSION LIABILITY THAT LIABILITY NOW IS PROJECTED TO BE AS MUCH AS 19 BILLION BY YEAR END EXCLUDING THE EFFECTS OF THE PENSION IMPROVEMENTS IN THE UAW PATTERN PACT GM IS UNDER PRESSURE FROM WASHINGTON TO DIVERT MORE CASH FROM NEWPRODUCT SPENDING AND INTO ITS PENSION TRUSTS TO REDUCE THAT GAP MR SMITH PROBABLY WON'T GET MUCH TIME TO DECIDE HIS NEXT MOVE UAW OFFICIALS ARE EXPECTED TO SET A QUICK SETTLEMENT DEADLINE AT GM AFTER THEY PRESENT TERMS OF THE NEW AGREEMENT TO CHRYSLER LOCAL UNION LEADERS TOMORROW CHRYSLER AND UAW NEGOTIATORS REACHED THEIR AGREEMENT ABOUT FOUR HOURS AFTER AN 1159 PM THURSDAY STRIKE DEADLINE AND SEVERAL THOUSAND CHRYSLER WORKERS WALKED OFF THE JOB DESPITE UAW LEADERS' INSTRUCTIONS THAT THEY CONTINUE WORKING SEPARATELY CANADIAN AUTO WORKERS UNION MEMBERS VOTED 87 IN FAVOR OF RATIFYING A THREEYEAR LABOR CONTRACT WITH THE CANADIAN UNIT OF GENERAL MOTORS THE AGREEMENT CLOSELY FOLLOWS THE PATTERN SET BY THE UNION'S CONTRACT WITH THE CANADIAN UNIT OF CHRYSLER RATIFIED LAST MONTH THE CONTRACTS CONTAIN INCREASES IN WAGES PENSIONS AND TIME OFF ABOUT 8000 OF THE UNION'S 27700 MEMBERS WHO WORK AT GM VOTED THE CAW WILL TODAY SET A STRIKE DEADLINE FOR NEGOTIATIONS WITH FORD 9310040133 931004 HANOVER DIRECT BUYS TWEEDS WEEHAWKEN NJ HANOVER DIRECT INC OWNER OF CATALOG RETAILERS SAID IT COMPLETED THE PURCHASE OF THE WOMEN'S FASHION CATALOG TWEEDS INC FOR 36 MILLION IN HANOVER DIRECT COMMON STOCK THE ASSUMPTION OF 53 MILLION IN BANK AND LONGTERM DEBT AND 100000 IN CASH 9310040132 931004 INTERNATIONAL RHONEPOULENC TO ACQUIRE REST OF INSTITUT MERIEUX BY STEPHEN D MOORE STAFF REPORTER OF THE WALL STREET JOURNAL RHONEPOULENC SA ON FRIDAY AGREED TO ACQUIRE THE 49 IT DOESN'T ALREADY OWN OF VACCINES GIANT INSTITUT MERIEUX A MOVE THAT IS MEANT TO TIE UP LOOSE ENDS AHEAD OF THE PRIVATIZATION OF THE CHEMICAL AND HEALTHCARE COMPANY LATER THIS YEAR THE ACQUISITION TO BE ACCOMPLISHED THROUGH A STOCK SWAP VALUED AT 74 BILLION FRENCH FRANCS 13 BILLION UNDERSCORES STEADILY TIGHTENING LINKS BETWEEN THE COMPANIES IN RECENT YEARS INCLUDING A SEPARATE DIRECTLY HELD STAKE IN AFFILIATE PASTEUR MERIEUX CONNAUGHT RHONEPOULENC'S EFFECTIVE HOLDING IN INSTITUT MERIEUX IS ACTUALLY ABOUT 71 INDUSTRY ANALYSTS APPLAUDED THE PROPOSED TAKEOVER WHICH WOULD ENSURE RHONEPOULENC AN UNDILUTED PROFIT STREAM FROM A UNIT POISED FOR ROBUST GROWTH FOLLOWING THE PROPOSED SHARE EXCHANGE INSTITUT MERIEUX CHAIRMAN ALAIN MERIEUX AND CLOSE ALLIES IN THE DASSAULT FAMILY WOULD OWN ROUGHLY 10 OF RHONEPOULENC MR MERIEUX RESIGNED AS A RHONEPOULENC DIRECTOR EARLIER THIS YEAR BUT IT NOW SEEMS VIRTUALLY CERTAIN HE'LL BE REAPPOINTED WITH A MUCH STRONGER MANDATERESTORING A TOUCH OF ENTRENEURIAL FLAIR TO THE STAID CHEMICAL GROUP'S BOARDROOM PROCEEDINGS ANALYSTS SAID UNDER THE ACCORD RHONEPOULENC WOULD EXCHANGE 77 SHARES OF COMMON STOCK FOR EVERY FIVE SHARES OF MERIEUX COMMON IT DOESN'T ALREADY OWN THE TRANSACTION WON'T BE COMPLETED UNTIL RHONEPOULENC'S PRIVATIZATION AND REMAINS SUBJECT TO MERIEUX SHAREHOLDER APPROVAL BUT CLEARANCE IS VIRTUALLY CERTAIN SINCE THE MERIEUX AND DASSAULT FAMILIES WHICH HOLD A COMBINED 30 INSTITUT MERIEUX STAKE ALREADY HAVE ACCEPTED THE OFFER INSTITUT MERIEUX VAULTED TO ITS CURRENT PERCH AS THE WORLD'S BIGGEST VACCINE MANUFACTURER BY GOBBLING UP CANADIANBASED CONNAUGHT BIOSCIENCES IN 1989 BUT THE CONNAUGHT PURCHASE WOULDN'T HAVE BEEN POSSIBLE WITHOUT FINANCIAL BACKING FROM RHONEPOULENC IN THIS YEAR'S FIRST SIX MONTHS NET INCOME AT INSTITUT MERIEUX MORE THAN DOUBLED TO 433 MILLION FRANCS 76 MILLION ON A 16 INCREASE IN SALES TO 34 BILLION FRANCS BUOYANT SALES OF A NEW PEDIATRIC VACCINE AGAINST MENINGITIS CALLED ACTHIB FUELED THE PROFIT SURGE ANALYSTS SAID INSTITUT MERIEUX BOLSTERED ITS MARKETING CLOUT BY JOINING FORCES WITH MERCK & CO THE US DRUG GIANT IN ADDITION TO MARKETING PACTS MERCK AND MERIEUX HAVE AGREED TO CODEVELOP COMBINATION VACCINES FOR CHILDREN 9310040131 931004 INTERNATIONAL WASHINGTON INSIGHT NAFTA'S OPPONENTS TURNING SPOTLIGHT ON MEXICO'S RECORD IN HUMAN RIGHTS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER WARNED HIS MEXICAN COUNTERPART LAST WEEK THAT THE DEBATE IN WASHINGTON OVER THE NORTH AMERICAN FREE TRADE AGREEMENT COULD GET UGLY IN COMING DAYS WITH CONGRESSIONAL OPPONENTS OF THE PACT ATTACKING MEXICO'S SPOTTY HUMANRIGHTS RECORD AND AUTHORITARIAN POLITICS MR CHRISTOPHER URGED THE MEXICANS TO POLISH THEIR IMAGE WITH A VARIETY OF REFORMS INCLUDING INVITING INTERNATIONAL OBSERVERS TO MONITOR ITS PRESIDENTIAL ELECTION NEXT YEAR HE ALSO SUGGESTED THAT THE MEXICANS ENDORSE PRESIDENT CLINTON'S CALL FOR ESTABLISHMENT OF A UNITED NATIONS HIGH COMMISSIONER TO MONITOR INTERNATIONAL HUMAN RIGHTS US OFFICIALS SAY THEY DOUBT THE MEXICANS WILL TAKE THE SECRETARY'S ADVICE MAKING THE TASK OF SELLING NAFTA EVEN MORE DAUNTING WHILE UNION FEARS ABOUT JOB LOSSES AND ROSS PEROT'S GIANT SUCKING SOUND DRIVE MUCH OF THE OPPOSITION TO THE PACT CONCERNS ABOUT MEXICAN DEMOCRACY AND HUMAN RIGHTS GIVE A COVER OF MORALITY AND UNSELFISHNESS TO EVEN THE MOST PROTECTIONISTMINDED NAFTA OPPONENTS MICHIGAN DEMOCRAT REP DAVID BONIOR THE HOUSE MAJORITY WHIP IS AN ENTHUSIASTIC PRACTITIONER OF THIS ART IN A SPEECH IN THE HOUSE IN JUNE MR BONIOR DETAILED WHAT HE CALLED MEXICO'S LONG HISTORY OF REPRESSION ELECTORAL FRAUD AND HUMANRIGHTS ABUSES EVEN QUOTING THE 19TH CENTURY AFRICANAMERICAN STATESMAN AND ANTISLAVERY ADVOCATE FREDERICK DOUGLASS TO MAKE HIS CASE THAT NEITHER PERSONS NOR PROPERTY ARE SAFE IN A REPRESSIVE AND CORRUPT SYSTEM PASSING NAFTA MR BONIOR ARGUED WOULD REWARD MEXICO'S ANTIDEMOCRATIC RULERS AND PUNISH AVERAGE MEXICANS BY LOCKING IN A SYSTEM THAT EXPLOITS ITS OWN PEOPLE THE DEFEAT OF NAFTA HE CONTENDED MIGHT BE ENOUGH OF A SETBACK TO LOOSEN THE RULING PARTY'S HOLD ON POWER REBUTTING SUCH AN ARGUMENT WON'T BE EASY SAYS JOHN BAILEY A LATIN AMERICA EXPERT AT GEORGETOWN UNIVERSITY WHO FAVORS THE ACCORD MEXICO ISN'T DEMOCRATIC AND IN THE SHORT RUN AT LEAST THERE IS LITTLE DOUBT THAT NAFTA WILL STRENGTHEN MEXICO'S ALLPOWERFUL RULING PARTY HE SAYS NAFTA'S DEFEAT HE ACKNOWLEDGES WOULD BE A MAJOR BLOW FOR MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI WHO HAS CHAMPIONED THE PACT AS KEY TO HIS FARREACHING ECONOMIC REFORM PLANS BUT WHETHER THAT DEFEAT WOULD BE ENOUGH TO KNOCK THE RULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI OFF ITS 60PLUS YEAR PERCH OR SIMPLY UNDERMINE THE REFORM FACTION INSIDE THE PARTY IS ANYBODY'S GUESS SAYS MR BAILEY A SURER IF LESS DRAMATIC WAY OF PROMOTING CHANGE IN MEXICO ARGUE NAFTA SUPPORTERS IS TO WIN APPROVAL FOR THE PACT AND THEREBY INCREASE TRADE AND ECONOMIC CONTACTS BETWEEN THE TWO COUNTRIES IF YOU LOOK AT TRENDS OVER THE YEARS MORE CONTACT HAS MEANT STEADILY MORE REFORM SAYS ABRAHAM LOWENTHAL DIRECTOR OF THE CENTER FOR INTERNATIONAL STUDIES AT THE UNIVERSITY OF SOUTHERN CALIFORNIA NAFTA SUPPORTERS POINT IN PARTICULAR TO DEVELOPMENTS ALONG MEXICO'S NORTHERN BORDER WITH THE US WHERE REGULAR US CONTACT UPWARD ECONOMIC MOBILITY AND DEMOCRATIC REFORM HAVE ALL GONE HAND IN HAND INTERESTINGLY THIS SORT OF MACROPOLITICAL DEBATE SO FASHIONABLE IN WASHINGTON HAS YET TO REACH MEXICO OPPOSITION PARTIES THERE HAVE TAKEN A YES BUT ATTITUDE TOWARD NAFTA URGING SOME CHANGES IN THE PACT WITHOUT COMPLETELY REJECTING IT THE UGLY TONE OF THE DEBATE ON CAPITOL HILL COULD BACKFIRE CONFIRMING THE WORST FEARS OF ALL MEXICANS ABOUT US POLITICAL MEDDLING WARNS M DELAL BAER AN EXPERT ON MEXICAN POLITICS AT THE WASHINGTONBASED CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES MEANWHILE PRESIDENT SALINAS'S EFFORTS TO BOLSTER THE CASE FOR NAFTA DESERVE A SIMILAR YES BUT RESPONSE IN RECENT WEEKS THE PRIDOMINATED LEGISLATURE HAS ADOPTED A SERIES OF MUCHNEEDED ELECTORAL REFORMS INCLUDING MORE ACCESS TO THE MEDIA FOR OPPOSITION PARTIES AND MORE OPENNESS IN ELECTION MONITORING THESE REFORMS STILL WON'T ALTER THE PRI'S GUARANTEED DOMINANCE OF MEXICAN POLITICS AT LEAST NOT BEFORE THE US DECIDES WHETHER CLOSER TRADE TIES WILL HELP OR HINDER DEMOCRACY AT OUR SOUTHERN BORDER 9310040130 931004 ENTERPRISE GOVERNMENT WATCH SMALL BUSINESS FEARS LONGTERM EFFECTS OF HEALTH PLAN BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL OWNERS FEAR ANY FINANCIAL BENEFITS OF HEALTHCARE REFORM MAY BE TEMPORARY MANY ENTREPRENEURS LIKE PRESIDENT CLINTON'S PROPOSED SUBSIDIES FOR SMALLER BUSINESSES BUT THEY ALSO HAVE CONCERNS BARRY SIEGFRIED HEAD OF OMNI CABLE CO AN ELECTRICAL WIRE DISTRIBUTOR NEAR BROOMALL PA SAYS THE CLINTON PROPOSAL WOULD SAVE HIS SMALL COMPANY AN ESTIMATED 83000 A YEAR IN HEALTHCARE COSTS WHICH WOULD BE CAPPED AT 79 OF PAYROLL HE NOW SPENDS ABOUT 115000 A YEAR OR 83 OF HIS PAYROLL TO INSURE 40 EMPLOYEES BUT WITH MORE GOVERNMENT INVOLVEMENT EXPECTED WHAT WE'RE REALLY CONCERNED ABOUT IS WHAT HAPPENS IN THE LONG RUN HE ADDS WE ALL KNOW THE GOVERNMENT RUNS THE MEDICARE AND MEDICAID SYSTEMS AND THEY'RE SCREWED UP SMALL BUSINESSES' POSSIBLE INCREASED FINANCIAL BURDEN OVER THE LONG TERM COULD BECOME A GREATER WORRY THAN THE CONTENTIOUS ISSUE OF REQUIRING EMPLOYERS TO PROVIDE INSURANCE SAYS JOHN POLK SENIOR VICE PRESIDENT OF THE COUNCIL OF SMALLER ENTERPRISES OR COSE THE CLEVELAND INSURANCE BUYING GROUP SERVED AS AN EARLY MODEL FOR THE CLINTON PLAN MR POLK SAYS THAT SMALL BUSINESSES WOULD BE THE ONLY PRIVATE ENTITIES REGULARLY PAYING INTO THE PROPOSED HEALTHCARE PURCHASING ALLIANCES THE ALLIANCES ALSO WOULD INCLUDE RETIREES UNEMPLOYED PEOPLE WITHOUT PRIVATE INSURANCE AND RECIPIENTS OF MEDICAID THE GOVERNMENT HEALTH PROGRAM FOR THE POOR IF I'M A SMALLBUSINESS OWNER IN THE SAME ALLIANCE WITH ALL THESE GROUPS I'D BE A LITTLE NERVOUS MR POLK SAYS I'M NOT SURE HOW THE GOVERNMENT SUBSIDIES WILL INSULATE SMALL EMPLOYERS AGAINST FUTURE INCREASES IN STATE TAXES FOR HEALTH CARE HE CONTINUES UNDER THE CLINTON PLAN STATES WILL RUN OR OVERSEE THESE ALLIANCES COSE'S 11000 MEMBERS MAINLY SMALL COMPANIES GENERALLY THINK THE PLAN'S PROPOSED COST IS TOO GOOD TO BE TRUE MR POLK SAYS MANY MEMBERS PAY 12 OF THEIR PAYROLLS FOR THE KIND OF HEALTH COVERAGE ENVISIONED BY MR CLINTON IN THE PRESIDENT'S PROGRAM CONTRIBUTIONS OF BUSINESSES WITH 50 OR FEWER WORKERS WOULD BE CAPPED FROM A LOW OF JUST 35 OF PAYROLL IF WAGES AVERAGE LESS THAN 12000 A YEAR TO A MAXIMIUM OF 79 IF WAGES AVERAGE MORE THAN 24000 THE ADMINISTRATION'S SUGGESTED SUBSIDY ALSO WOULD PENALIZE ENTREPRENEURS WHO CREATE HIGHSKILLED HIGHWAGE JOBS MR POLK SAYS HE NOTES THE LESS YOU PAY YOUR PEOPLE THE BETTER THE ADMINISTRATION'S PROPOSAL IS FOR YOU MEANWHILE SOME OWNERS WANT PROPOSED SUBSIDIES EXPANDED TO PROVIDE GREATER RELIEF FOR CONCERNS WITH MORE THAN 50 WORKERS THERE ARE TOO MANY BUSINESSES IN THAT BUBBLE WITH LOWWAGE EMPLOYEES SAYS WILLIAM FERGUSEN OWNER OF THREE DENVER RESTAURANTS THAT TOGETHER EMPLOY 200 PEOPLE THIS MONTH THE SMALL BUSINESS ADMINISTRATION EXPECTS TO OFFER OWNERS A TOLLFREE NUMBER TO HELP FIGURE OUT THE BOTTOMLINE IMPACT OF HEALTHCARE REFORM MEXICAN MOVES SMALLBUSINESS SUPPORT FOR FREETRADE AGREEMENT WIDENS MORE SMALLBUSINESS ADVOCACY GROUPS ARE LINING UP BEHIND THE NORTH AMERICAN FREE TRADE AGREEMENT PROPOSAL WITH MEXICO AND CANADA THE SMALL BUSINESS LEGISLATIVE COUNCIL EXPECTS TO GIVE NAFTA ITS FORMAL BLESSING AFTER EXAMINING ITS FINE POINTS NATIONAL SMALL BUSINESS UNITED ALREADY BACKS THE PACT AND MANY ENTREPRENEURS SEE AN EXPANDED EXPORT MARKET IF CONGRESS APPROVES THE AGREEMENT WHICH THE CLINTON ADMINISTRATION SUPPORTS NAFTA WOULD CREATE A BIG ACCESSIBLE MARKET FOR SMALL BUSINESSES SAYS WILLIAM PINKERTON PRESIDENT OF PROJECT SERVICES INTERNATIONAL A SMALL PITTSBURGH COMPANY THAT ALREADY DOES SOME BUSINESS IN MEXICO AND SEEKS MORE IT'S RIGHT ON OUR BORDER AND RIGHT NOW THEY LOVE AMERICAN PRODUCTS SAYS MR PINKERTON HIS COMPANY PROVIDES INDUSTRIAL TRAINING PROGRAMS AND SOFTWARE FOR MAINTAINING INDUSTRIAL EQUIPMENT BUT THE EXECUTIVE SAYS SOME EXPECTED MEXICAN BUSINESS IS ON HOLD HE SUSPECTS COMPANIES THERE ARE WAITING TO SEE WHETHER NAFTA WILL BE APPROVED AS A RESULT HE HAS YET TO HIRE THE APPROXIMATELY 15 ADDITIONAL PEOPLE HE WOULD NEED HERE AND IN MEXICO IF THOSE CONTRACTS GO THROUGH OTHER SMALL BUSINESSES STILL OPPOSE THE PACT HOWEVER THE BIGGEST FOE IS THE NATIONAL KNITWEAR ASSOCIATION ITS MEMBERS ABOUT 700 SMALL CONCERNS SEW GARMENTS FOR LARGER BUSINESSES AND TYPICALLY EMPLOY WOMEN WITH FEW OTHER SKILLS WE PAY AS MUCH FOR ONE WORKER'S HEALTH INSURANCE IN THIS US INDUSTRY AS THEY PAY FOR THE WHOLE SHOOTING MATCH LABOR AND BENEFITS IN MEXICO SAYS SETH BODNER EXECUTIVE DIRECTOR OF THE NEW YORK GROUP THIS PACT WILL EAT UP THE WHOLE INDUSTRY MEMBERS OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE LARGEST SMALLBUSINESS GROUP HAVE BEEN ALMOST EVENLY DIVIDED ON NAFTA THE GROUP PLANS ANOTHER POLL REINVENTING GOVERNMENT MIGHT LEAVE SOME SMALL CONTRACTORS GORED VICE PRESIDENT GORE'S NATIONAL PERFORMANCE REVIEW PROPOSES TO MAKE THE FEDERAL GOVERNMENT WORK MORE EFFICIENTLY BY ELIMINATING NEEDLESS REGULATIONS BUT SOME PROPOSALS MIGHT HURT SMALL FIRMS THAT DO BUSINESS WITH UNCLE SAM SAYS COLETTE NELSON EXECUTIVE DIRECTOR OF THE AMERICAN SUBCONTRACTORS ASSOCIATION A TRADE GROUP WHOSE 7000 MEMBERS MAINLY ARE SMALL COMPANIES MS NELSON CITES A SUGGESTION FOR REPLACING 1600 PAGES OF RULES GOVERNING FEDERAL PURCHASES WITH MERE GUIDELINES A SMALL BUSINESS CAN'T GO UP AGAINST THE GOVERNMENT WITHOUT A STRICT SET OF RULES SHE SAYS IF THE GUIDELINES LET A CONTRACTING OFFICER DECIDE WHEN THERE'S OPEN OR SUFFICIENT COMPETITION HE CAN DECIDE TO CHOOSE BETWEEN COMPANIES A AND B AND TELL COMPANY C AND COMPANY D TO TAKE A HIKE STILL SOME IDEAS IN THE REPORT COULD BE A BONUS FOR SMALL COMPANIES MS NELSON SAYS IT SUGGESTS ENDING THE PREFERENCE THAT FEDERAL AGENCIES MUST GIVE FEDERAL PRISON INDUSTRIES A NONPROFIT COMPANY THAT SELLS ITEMS MADE BY FEDERAL INMATES SMALL FURNITURE MANUFACTURERS LONG HAVE COMPLAINED THAT THEY ARE PRICED OUT OF THE MARKET FOR THE US GOVERNMENT'S BUSINESS BY THE CONVICTS THEY SUPPORT WITH TAX DOLLARS MS NELSON SAYS SMALL CONTRACTORS ALSO WOULD BENEFIT FROM A PROPOSED GOVERNMENTWIDE ELECTRONIC CONTRACTING SYSTEM THE NATIONWIDE SYSTEM WOULD PROVIDE COMPUTERIZED INFORMATION ABOUT DOING BUSINESS WITH UNCLE SAM SMALL TALK IT CAN TAKE UP TO FIVE YEARS FOR SMALL FIRMS TO SETTLE MINOR SUPERFUND CLAIMS WITH THE FEDERAL GOVERNMENT THE GOVERNMENT ACCOUNTING OFFICE ESTIMATES SMALLBUSINESS GROUPS SUPPORT COORDINATION OF THE WORKERS' COMPENSATION INSURANCE SYSTEM WITH ANY NEW HEALTHCARE PLAN RATHER THAN COMPLETELY MERGING BOTH IT ISN'T CLEAR WHICH APPROACH THE ADMINISTRATION WILL BACK BARRY SIEGFRIED PRESIDENT OF OMNI CABLE CO ESTIMATES HIS FIRM WOULD SPEND ABOUT 79000 A YEAR UNDER THE CLINTON HEALTHCARE PLAN TO INSURE ITS 40 EMPLOYEES OR ABOUT 414 OF PAYROLL OMNI NOW SPENDS 101000 A YEAR OR ABOUT 53 OF PAYROLL ON HEALTH INSURANCE THE SAVINGS WOULD BE ABOUT 22000 A YEAR INSTEAD OF 83000 AS STATED IN A GOVERNMENT WATCH COLUMN MONDAY MR SIEGFRIED SAYS HE MISTAKENLY CITED A ROUGH ESTIMATE OF HIS COSTS RATHER THAN SAVINGS UNDER THE PLAN 9310040129 931004 WISER OIL BUYS PROPERTIES DALLAS WISER OIL CO SAID IT PURCHASED OIL AND GAS PROPERTIES FROM UNITS OF MOBIL CORP FOR 588 MILLION THE PROPERTIES LOCATED IN THE PERMIAN BASIN OF WEST TEXAS AND NEW MEXICO WILL INCREASE WISER'S DAILY OIL AND GAS PRODUCTION BY 60 AND 70 RESPECTIVELY AVERAGE DAILY PRODUCTION OF THE NEW PROPERTIES IN MAY 1993 WAS 2250 BARRELS OF OIL AND 105 MILLION CUBIC FEET OF GAS WISER SAID IT INTENDS FURTHER DEVELOPMENT BEGINNING IN THE FOURTH QUARTER OF 1993 THE ACQUISITION IS FINANCED WITH INTERNAL CASH AND A NEW CREDIT FACILITY 9310040128 931004 BUNDESBANK'S NEW PRESIDENT REAFFIRMS POLICY TIETMEYER SAYS THAT MARK COULD SUFFER WITHOUT OVERHAUL OF STRUCTURES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT HANS TIETMEYER THE GERMAN BUNDESBANK'S NEW PRESIDENT REAFFIRMED THE CENTRAL BANK'S CONSERVATIVE MONETARY BIAS AND ADDED WARNINGS THAT THE MARK COULD SUFFER UNLESS GERMANY REVITALIZES ITS CRUSTY ECONOMIC AND SOCIAL STRUCTURES THE BUNDESBANK'S INTERESTRATE POLICIES ALONE WON'T RESTORE COMPETITIVENESS AND GROWTH HE SAID FRIDAY AT THE RETIREMENT CEREMONY FOR HELMUT SCHLESINGER IN HIS PREPARED SPEECH MR TIETMEYER INDICATED THAT THERE WILL BE LITTLE CHANGE IN THE BUNDESBANK'S CONSERVATIVE POLICIES AND DEFENSE OF THE MARK FORCED REDUCTIONS IN CENTRAL BANK INTEREST RATES WHICH ARE CONTRARY TO STABILITY POLICIES CAN NEITHER SOLVE ECONOMIC OR STRUCTURAL PROBLEMS MR TIETMEYER SAID BUT THEY WOULD UNDERMINE TRUST IN CURRENCY VALUES DRIVE LONGTERM INTEREST RATES HIGHER AND DELAY NECESSARY CORRECTIONS IN THE REAL ECONOMY THE 62YEAROLD MR TIETMEYER HAD BEEN THE HEIR APPARENT FOR MR SCHLESINGER'S POST SINCE BEING NAMED BUNDESBANK VICE PRESIDENT IN 1991 HE JOINED THE BUNDESBANK DIRECTORATE A YEAR EARLIER AFTER A LONG CAREER AS A SENIOR FINANCE MINISTRY OFFICIAL AND INTERNATIONAL FINANCIAL POLICY ADVISER TO CHANCELLOR HELMUT KOHL MR TIETMEYER BRINGS TO THE BUNDESBANK PRESIDENCY INSIGHTS INTO BONN POLITICS AND POLICY MACHINERY INDEED HIS BONN PAST AND TIES TO MR KOHL HAVE BEEN VIEWED AS POSSIBLY MAKING THE BUNDESBANK MORE ACCOMMODATING TO BONN'S WISHES BUT MR TIETMEYER'S FIRST SPEECH AS BUNDESBANK PRESIDENT REVEALED OTHERWISE INSTEAD THERE HAS EMERGED A NEW FORCE PUSHING FOR GOVERNMENT ECONOMIC REFORMS TO REVERSE SAGGING PRODUCTIVITY AND LAPSED COMPETITIVENESS IF THAT DOESN'T CHANGE HE WARNED THE MARK ITSELF COULD LOSE ITS LUSTER OUR COUNTRY CANNOT LIVE OVER TIME ON PAST ACHIEVEMENTS AND THE TRUST EARNED FOR ITS CURRENCY HE SAID MR TIETMEYER UNDERSCORED INDUSTRY CONCERNS THAT GERMANY'S UNITY COSTS GENEROUS SOCIAL PROGRAMS HIGH LABOR COSTS AND SHORT WORKING TIMES HAVE ERODED GERMANY'S ABILITY TO COMPETE IN GLOBAL MARKETS GERMANY'S RISING UNEMPLOYMENT PROTRACTED ECONOMIC WEAKNESS FISCAL DEFICITS CURRENT ACCOUNT DEFICITS AND UNUSUALLY HIGH INFLATION ARE ALL SYMPTOMS OF STRUCTURAL AS WELL AS CYCLICAL PROBLEMS MR TIETMEYER SAID HE DECLARED GERMANS MUST BE PREPARED FOR CORRECTIONS IN ECONOMIC AND SOCIAL POLICIES THAT AT FIRST COULD HAVE A BITTER TASTE STILL HE SAID THAT TO RESTORE COMPETITIVENESS MARKETORIENTED PRODUCTION MUST TAKE PRECEDENCE OVER WEALTH REDISTRIBUTION AND SOCIAL ENTITLEMENTS CHANCELLOR KOHL ALREADY HAS BEGUN CUTTING INTO GERMAN SOCIAL PROGRAMS DECLARING EARLIER THAT AFTER FOUR DECADES OF PROSPERITY GERMANS MUST BEGIN WORKING LONGER AND DEMANDING LESS MR TIETMEYER PRAISED THE GOVERNMENT'S RECENT EFFORTS TO TRIM FISCAL DEFICITS AS WELL AS NEW SIGNS OF MODERATED WAGE DEMANDS BY LABOR BUT HE SAID MORE IS NEEDED THERE IS STILL MUCH TO BE DONE IN WEEDING THROUGH ENTITLEMENTS IN RESTRUCTURING THE SOCIAL STATE IN ERECTING NEW ENVIRONMENTALLY FRIENDLY PRODUCTION STRUCTURES AND ABOVE ALL OVERCOMING PROBLEMS IN THE LABOR MARKET HE SAID IF THE MAASTRICHT TREATY FOR EUROPEAN MONETARY UNION TAKES EFFECT BY 1999 AS PLANNED MR TIETMEYER WILL LEAD THE BUNDESBANK THROUGH THE YEARS UP TO THE PLANNED INSTITUTION OF A COMMON EUROPEAN CURRENCY ISSUED BY A SINGLE EUROPEAN CENTRAL BANK 9310040127 931004 TANDYCRAFTS GETS CREDIT FACILITY FORT WORTH TEXAS TANDYCRAFTS INC SAID IT OBTAINED A 50 MILLION REVOLVING CREDIT FACILITY FROM FIRST INTERSTATE BANCORP'S FIRST INTERSTATE BANK OF TEXAS UNIT THE SPECIALTY RETAILER SAID THE UNSECURED CREDIT FACILITY PROVIDES A TWOYEAR REVOLVING LINE OF CREDIT RENEWABLE ANNUALLY AND CONVERTIBLE INTO A FIVEYEAR TERM LOAN AT THE END OF THE REVOLVING PERIOD IF NOT RENEWED IT WILL USE THE FACILITY TOGETHER WITH EXCESS CASH TO FINANCE ACQUISITIONS AND EXPAND INTERNALLY 9310040126 931004 CONSECO COMPLETES PURCHASE CARMEL IND CONSECO INC SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED PURCHASE OF 133 MILLION COMMON SHARES OF BANKERS LIFE HOLDING CORP FROM ICH CORP FOR 2876 MILLION THE FINANCIAL SERVICES HOLDING COMPANY SAID THE PURCHASE INCREASES ITS OWNERSHIP IN BANKERS LIFE COMMON STOCK TO 304 MILLION SHARES OR 557 OF THE SHARES OUTSTANDING 9310040125 931004 PIECE OF FURNITURE OFFERS A PLACE TO REST FEET THEN REST IN PEACE BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL JERRY BEY AND URELL LOWERY OF CHARLOTTE NC HAVE INVENTED A NEW PIECE OF FURNITURE THAT CAN STORE BOOKS OR TOYS OR HOLD UP A TELEVISION SET SO WHAT WHEN THE OWNER DIES THIS TV STAND CAN BE TURNED INTO A COFFIN THE KASKIT AS THE COLLAPSIBLE COFFIN IS CALLED LOOKS LIKE A MEDIUMSIZED FOOT LOCKER MADE OF BIRCHWOOD THE ADJUSTABLE CASKET HAS THREE SECTIONS THAT PULL OUT FROM ONE SIDE TO REACH A MAXIMUM LENGTH OF SEVEN FEET PRICES RANGE FROM 450 FOR THE NOFRILLS MODEL TO 750 FOR THE DELUXE VERSION WHICH COMES WITH A LINING AND BRASS HANDLES THAT COMPARES WITH A RETAIL PRICE OF BETWEEN 1500 AND 1900 FOR A TRADITIONAL CASKET ACCORDING TO THE FEDERATED FUNERAL DIRECTORS OF AMERICA THE IDEA FOR THE KASKIT CAME TO MR BEY LAST YEAR AFTER HIS FATHERINLAW DIED THE COFFIN ALONE COST 1200 HE SAYS WHEN YOU'RE IN GRIEF THEY HIT YOU FOR ANY PRICE THAT THEY WANT SO FAR AT LEAST FOUR PEOPLE HAVE BOUGHT THE KASKIT CONCEPT SINCE PLACING THE FIRST ADS FOR THEIR INVENTION IN A WEEKLY NEWSPAPER IN AUGUST MESSRS BEY AND LOWERY BOTH OF WHOM WORK IN THE MAILROOM OF DUKE POWER CO HAVE SOLD FIVE TWO WERE BOUGHT BY THE ATTORNEY WHO WORKED ON THE PATENT WHEN ASKED FOR HIS CUSTOMERS' NAMES MR BEY DEMURS PREPARING FOR DEATH HE SAYS IS A PRIVATE THING MR LOWERY WHO USES HIS OWN KASKIT AS A TV STAND ACKNOWLEDGES THAT THE IDEA OF A COFFIN DOUBLING AS A PIECE OF FURNITURE MAY NOT BE FOR EVERYBODY BUT BOTH MEN THINK THERE'S A MARKET FOR THEIR PRODUCT AMONG PEOPLE WHO CAN'T AFFORD A FANCY FUNERAL KASKIT MAY ALSO GO INTERNATIONAL PEOPLE OVERSEAS THE MEN NOTE APPEAR TO HAVE FEWER NEUROSES ABOUT DEATH WILL KASKITS COME TO GRACE LIVING ROOMS ACROSS THE COUNTRY PEOPLE IN THE FUNERAL BUSINESS HAVE GRAVE DOUBTS KENNETH POE PRESIDENT AND GENERAL MANAGER OF HANKINS & WHITTINGTON A FUNERAL HOME IN CHARLOTTE THINKS KASKIT'S INVENTORS PROBABLY SHOULDN'T QUIT THEIR DAY JOBS PEOPLE DON'T WANT TO THINK ABOUT DEATH MR POE SAYS AND THEY CERTAINLY DON'T WANT A CONSTANT REMINDER OF IT JOHNNY GORDON A FUNERALHOME DIRECTOR IN MONROE NC AGREES I DON'T THINK FAMILIES WANT TO BURY SOMEONE IN SOME PIECE OF FURNITURE THAT PEOPLE HAD THEIR FEET PROPPED UP ON OR HAD THEIR SWIMSUIT STORED IN 9310040124 931004 TECHNOLOGY COLLAGEN IMPLANT IS CLEARED PALO ALTO CALIF COLLAGEN CORP SAID THE FOOD AND DRUG ADMINISTRATION APPROVED THE MARKETING OF ITS CONTIGEN IMPLANT FOR TREATMENT OF URINARY INCONTINENCE CAUSED BY STRESS COLLAGEN SAID THOSE WHO EXPERIENCE INCONTINENCE FROM SUDDEN STRESS SUCH AS WALKING OR SNEEZING ARE A SMALL SUBSET OF THE 10 MILLION PEOPLE IN THE US WHO HAVE GENERAL URINARY INCONTINENCE PROBLEMS THE COMPANY SAID CR BARD INC WHICH HOLDS WORLDWIDE MARKETING RIGHTS TO THE CONTIGEN IMPLANT WILL BEGIN MARKETING IT IMMEDIATELY 9310040123 931004 INTERNATIONAL GROUPS DEBATE HOW TO USE AID FOR PALESTINIANS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HAVING GAINED COMMITMENTS FOR ABOUT 2 BILLION TO BOLSTER PALESTINIAN GOVERNANCE OF THE OCCUPIED TERRITORIES OVER THE NEXT FIVE YEARS THE PALESTINIANS AND DONORS NOW BEGIN FOCUSING ON THE HARD PART HOW TO SPEND THE MONEY PRODUCTIVELY AND EFFICIENTLY LAST WEEK'S DONORS' CONFERENCE HERE PLEDGED 600 MILLION FOR THE FIRST YEAR TO BE USED FOR PROJECTS THAT WILL SHOW QUICK RESULTS SUCH AS HOUSING CONSTRUCTION AND ROAD AND SCHOOL REHABILITATION US AND OTHER OFFICIALS BELIEVE THAT MONEY FOR SUCH PROJECTS COULD BE ABSORBED QUICKLY AND POLITICALLY COULD BE USED BY PALESTINIAN LEADER YASSER ARAFAT TO WIN SUPPORTERS IN HIS RIVALRY AGAINST RADICAL PALESTINIAN GROUPS THAT REJECT PEACE WITH ISRAEL WE MUST HELP THEM DEMONSTRATE THE TANGIBLE BENEFITS OF PEACE AND WE MUST DO SO QUICKLY SECRETARY OF STATE WARREN CHRISTOPHER SAID AT FRIDAY'S CONFERENCE THE MEETING TOOK PLACE LESS THAN THREE WEEKS AFTER ISRAEL AND MR ARAFAT AGREED TO A PLAN UNDER WHICH ISRAEL INITIALLY TURNS OVER GAZA AND THE WEST BANK CITY OF JERICHO AND LATER MUCH OF THE WEST BANK FOR PALESTINIAN GOVERNANCE IN AN AUTONOMY PLAN IN THE LONG RUN THOUGH THE OCCUPIED TERRITORIES ARE BADLY IN NEED OF MASSIVE PROJECTS THAT WILL REQUIRE SUBSTANTIAL PRIVATE INVESTMENT AND WON'T HAVE AN IMMEDIATE POLITICAL PAYOFF A RECENT REPORT BY THE WORLD BANK DISCUSSING LONGTERM NEEDS FOUND THAT URBAN WATER SUPPLY AND ELECTRICITY CONSUMPTION IN THE OCCUPIED TERRITORIES WERE BELOW THAT OF NEIGHBORING ARAB STATES PALESTINIANS HAVE TO TRY TO AVOID THE SHOWCASE PROGRAMS POLITICIANS LOVE THINGS THAT ARE NOTICEABLE LIKE STEEL MILLS AND PORTS BUT WHICH DON'T NECESSARILY FIT ECONOMIC NEEDS SAID STANLEY FISCHER AN ECONOMICS PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND FORMER CHIEF ECONOMIST AT THE WORLD BANK MR ARAFAT HAS INDICATED THAT THE OVERALL EFFORT WOULD REQUIRE FAR MORE THAN THE ROUGHLY 2 BILLION PLEDGED LAST WEEK MOREOVER SOME PALESTINIAN OFFICIALS SAID FRIDAY THAT IT ISN'T CLEAR WHETHER ALL THE MONEY PLEDGED IS NEW FUNDS OR A DUPLICATION BY SOME NATIONS OF MONEY PREVIOUSLY EARMARKED TO AID THE PALESTINIANS AT FRIDAY'S CONFERENCE THE CLINTON ADMINISTRATION PLEDGED 500 MILLION OVER FIVE YEARS WITH ABOUT 375 MILLION IN GRANTS AND THE BALANCE IN LOANS AND LOAN GUARANTEES THE EUROPEAN COMMUNITY PLEDGED 600 MILLION OVER FIVE YEARS AND JAPAN 200 MILLION OVER TWO YEARS ISRAEL PROMISED 25 MILLION IN GRANTS OVER FIVE YEARS AND 50 MILLION IN LOANS 9310040122 931004 WORLD MARKETS WITH BULLISH ELEMENTS IN PLACE FRANKFURT STOCKS SEEN RISING STEADILY TO NEW HIGHS BY YEAR END BY ROGER MALONE SPECIAL TO THE WALL STREET JOURNAL FRANKFURT THOUGH THE THIRDQUARTER SURGE IN THE FRANKFURT STOCK MARKET'S BLUE CHIPS PROBABLY WON'T BE MATCHED IN THE CURRENT QUARTER ANALYSTS SAID THEY EXPECT PRICES TO CLIMB STEADILY TO RECORD HIGHS BY YEAR END THE BULLISH TREND COULD BE HEIGHTENED SOON BY INTEREST IN DAIMLERBENZ SHARES WHICH PREMIERE ON THE NEW YORK STOCK EXCHANGE TOMORROW AND SUSTAINED SUPPORT IS EXPECTED FROM COMING BUSINESSTAX REFORMS MORE MONETARY EASINGS BY THE GERMAN BUNDESBANK THE CENTRAL BANK AND THE NOTION THAT GERMANY IS POSITIONED FOR ECONOMIC RECOVERY ANALYSTS SAID THE COMBINATION COULD SEND THE DAX 30SHARE INDEX WELL ABOVE ITS ALLTIME HIGH OF 197643 SET MARCH 30 1990 THE DAX FINISHED FRIDAY AT 191209 OFF 362 POINTS IN THE THIRD QUARTER'S FIRST TWO MONTHS THE DAX SAILED ALMOST 250 POINTS HIGHER GAINING ABOUT 15 TO ITS 1993 INTRADAY HIGH OF 194630 ON AUG 31 BEFORE SETTLING INTO A MONTHLONG CONSOLIDATION THE RALLY WAS PUSHED BY BUNDESBANK INTERESTRATE CUTS AND BY A BIG REENTRY OF FOREIGN INSTITUTIONAL INVESTORS INTO THE MARKET I THINK A LOT OF PEOPLE ARE GEARING THEMSELVES UP FOR A MEGARALLY SAID STEVE HAWKES A FRANKFURT TRADER FOR BARCLAYS DE ZOETE WEDD DEUTSCHLAND TRADING EARLY IN THE QUARTER WILL PROBABLY BE CHOPPY WITH SWINGS UP AND DOWN BETWEEN 20 AND 30 POINTS HE SAID AND NEW HIGHS COULD COME LATE IN THE QUARTER SOME ANALYSTS SAID AN ASSAULT ON 2000 ON THE DAX COULD BE STYMIED CITING UNCERTAINTIES SUCH AS INCREASED LABOR TENSION IN WESTERN GERMANY FROM CONTRACT NEGOTIATIONS AND POSSIBLE RUSSIAN UNREST BUT WE COULD STILL SEE THE INDEX GO BEYOND 2000 BY THE END OF THE YEAR NIGEL LONGLEY AN INSTITUTIONAL ADVISER FOR COMMERZBANK IN FRANKFURT SAID ALL WE NEED IS A POSITIVE BIT OF ANNOUNCEMENTS AND ROBERT WILLIS GERMAN EQUITIES ANALYST FOR SG WARBURG SECURITIES IN LONDON ALSO SAID HE SEES THE DAX TOPPING 2000 BASICALLY THE BIGGEST DRIVING FACTOR IS THE TAX REFORM HE SAID THE CORPORATE TAXREFORM PACKAGE TAKES EFFECT JAN 1 REDUCING AVERAGE TAX RATES AS WELL AS LEVIES ON RETAINED PROFITS AND DISTRIBUTED PROFITS A DIVIDEND FANTASY TRIGGERED BY THE CHANGES WILL SUPPORT GERMAN SHARES AND HELP FUEL THEIR UPWARD TREND SAID KLAUS ROEPKE AN ANALYST FOR JAMES CAPEL & CO IN FRANKFURT BECAUSE DOMESTIC TAX CREDITS ADDED TO DIVIDEND PAYMENTS ALSO SHIFT COMPANIES ARE LIKELY TO INCREASE THEIR DIVIDENDS TO KEEP THE CHANGE NEUTRAL FOR DOMESTIC INVESTORS ANALYSTS SAID FOR FOREIGN INVESTORS WHO AREN'T AFFECTED BY THE TAXCREDIT CHANGE THE RESULT WILL BE A HIGHER RETURN THEY SAID ALSO DRIVING THE BULLISH TREND IS SPECULATION THAT THE BUNDESBANK WILL TRIM RATES MANY SEE AN EASING NEXT MONTH IN THE DISCOUNT RATE NOW 625 AND THE LOMBARD RATE NOW 725 BOTH WERE LAST CUT SEPT 9 RATE REDUCTIONS WOULD FUEL OPTIMISM ABOUT GERMANY'S ECONOMIC RECOVERY ANALYSTS SAID WHILE RECENT DATA ON INFLATION MONEYSUPPLY GROWTH AND IMPORT PRICES ALSO ARE SPURRING SENTIMENT THAT A REBOUND IS UNDER WAY DAIMLER IS EXPECTED TO TAKE THE LIMELIGHT INITIALLY AS IT MAKES ITS DEBUT ON THE BIG BOARD IN NEW YORK AND THE STOCK'S PRICE IN FRANKFURT IS EXPECTED TO GAIN AND HOLD FIRM THROUGH MOST OF THIS QUARTER THAT COULD IMPROVE GENERAL SENTIMENT ABOUT GERMAN COMPANIES AND GIVE A BOOST TO OTHERS CONSIDERING A US LISTING MEANWHILE THOUGH POSITIVE 10MONTH COMPANY FINANCIAL REPORTS LATE IN THE QUARTER AND COMMENTS ON DIVIDEND INCREASES MAY FUEL THE DAX BRIAN WILKINSON GERMAN ANALYST FOR CREDIT LYONNAIS SECURITIES IN LONDON SAID EARNINGS REPORTS AREN'T MOVING THE MARKET STRONGLY FOR NOW THE SHARES THAT WILL TEND TO OUTPERFORM THE MARKET HE SAID ARE THE ONES THAT ARE ANNOUNCING OR IMPLEMENTING RADICAL COST CUTS SUCH AS METALLGESELLSCHAFT DEUTSCHE BABCOCK AND BAYERISCHE MOTOREN WERKE BANKS ALSO ARE WELL POSITIONED ANALYSTS SAID NOTING THAT BANKING COMPANIES' RESULTS NOT ONLY COULD IMPROVE AS INTEREST RATES DECLINE BUT THE SECTOR GENERALLY BENEFITS EARLY IN A RECOVERY CYCLE AS BAD DEBTS DECREASE AND LENDING INCREASES TOKYO STOCKS GAINED SOLIDLY FRIDAY AS DEALERS AND INVESTMENT TRUST FUNDS BEGAN TO PLAY THEIR HANDS ON THE OPENING DAY OF THE FISCAL SECOND HALF LONDON SHARES FINISHED MARGINALLY FIRMER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11160 UP 057 REFLECTING INCREASES IN ALL REGIONAL MARKETS OILDRILLING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13067 UP 447 OR 35 WITH ROWAN COS OF THE US POSTING AN 11 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 7378 DOWN 060 OR 08 WITH BA T INDUSTRIES OF THE UK SLIDING 41 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 2830 POINTS THURSDAY CLIMBED 17742 TO 2028313 ON MONDAY IN TOKYO THE NIKKEI FELL 4731 POINTS TO CLOSE THE MORNING SESSION AT 2023582 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP STEEPLY FROM 2763 MILLION SHARES A DAY EARLIER GAINERS SWAMPED LOSERS 689303 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 839 POINTS THURSDAY GAINED 784 TO 163409 THE MARKET OPENED WEAKLY BUT RECOVERED QUICKLY ON SOLID BUYING INTEREST AS THE NEW QUARTER BEGAN DEALERS AND FUNDS AGGRESSIVELY SNAPPED UP LARGECAPITALIZATION ISSUES MANY OF WHICH ARE DOWN SHARPLY FROM LAST SPRING'S LEVELS THE BUYING ALSO LED TO A ROUND OF COVERING OF SHORT OR OVERSOLD POSITIONS BOUGHT EARLIER WITH BORROWED SHARES IN BETS ON PRICE DECLINES PARTICIPANTS ALSO WERE ENCOURAGED BY GOOD NEWS ON JAPANESE INFLATION LAST MONTH IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 18 POINTS TO 30933 AFTER STRUGGLING IN NEGATIVE TERRITORY FOR MOST OF THE DAY IN UNEVENTFUL DEALINGS THE FT 30STOCK INDEX FELL 57 POINTS TO 23126 VOLUME WAS 6369 MILLION SHARES COMPARED WITH 6944 MILLION SHARES A DAY EARLIER SEVERAL RETAILERS TOOK A BEATING BUT FINANCIAL ISSUES GAINED BRUSSELS SHARES CLIMBED SHARPLY AND BROADLY BOLSTERED BY A STRONGER DOLLAR AND BASKET TRADING 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 9310040121 931004 POLITICS & POLICY AT LEAST FIVE US SOLDIERS ARE KILLED IN RAID AGAINST SOMALI WARLORD AIDID BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT LEAST FIVE US SOLDIERS WERE KILLED AND MORE THAN A DOZEN WOUNDED IN SOMALIA YESTERDAY IN A LARGESCALE RAID AGAINST THE FORCES OF RENEGADE WARLORD MOHAMED AIDID THE CASUALTIES WHICH CAME AS TWO US ARMY UH60 BLACKHAWK HELICOPTERS WERE DOWNED CAN ONLY INCREASE CONGRESSIONAL CALLS TO WITHDRAW SOON FROM THE FACTIONRIDDEN AFRICAN NATION EVEN BEFORE THE NEWS OF THE US CASUALTIES CAME SEN BILL BRADLEY D NJ SAID I THINK WE OUGHT TO LEAVE NOW HE NOTED THAT WHEN THE SENATE DEBATED THE SOMALIA SITUATION LAST MONTH IT CAME CLOSE TO CUTTING OFF FUNDING FOR THE US MISSION THERE THE ADMINISTRATION HAS SAID IT WILL DEFINE ITS GOALS AND STRATEGY IN SOMALIA TO CONGRESS WITHIN TWO WEEKS BUT CONGRESS PLANS TO RECONSIDER SOMALIA BY MIDNOVEMBER AND SEN BRADLEY PREDICTED THAT IT WOULD VOTE THEN TO TERMINATE THE MISSION DEFENSE SECRETARY LES ASPIN REJECTED CALLS FOR AN IMMEDIATE PULLOUT BUT SAID YESTERDAY ON CBS'S FACE THE NATION THAT WE'RE ALL LOOKING FOR A DATE CERTAIN FOR WITHDRAWAL HE ADDED THE TRICK IS GOING TO BE ABLE TO WITHDRAW THOSE FORCES SO THAT THE FAMINE DOESN'T RETURN A MINIMUM AMOUNT OF SECURITY IS WHAT'S NEEDED TO FEED THE PEOPLE ARRIVING IN CALIFORNIA TO PROMOTE HIS PROPOSED HEALTHCARE REFORMS PRESIDENT CLINTON EXPRESSED SORROW AT THE DEATHS OF THE US SOLDIERS BUT REAFFIRMED US FORCES WOULD STAY IN SOMALIA DETAILS WERE STILL SKETCHY LAST NIGHT PARTLY BECAUSE THE OPERATION IN WHICH THE CASUALTIES WERE SUFFERED WAS CONTINUING A PENTAGON SPOKESMAN SAID AS PART OF THAT OPERATION ABOUT 20 MEMBERS OF MR AIDID'S FORCES WERE DETAINED INCLUDING ONE HIGHRANKING PERSON THE SPOKESMAN ADDED EARLIER YESTERDAY THREE US MARINES WERE WOUNDED AND THEIR SOMALI DRIVER KILLED WHEN THEIR TRUCK HIT A LANDMINE YESTERDAY'S US DEATHS ALL APPARENTLY RANGER SPECIAL OPERATIONS FORCES INVOLVED IN THE RAID ADDED SIGNIFICANTLY TO THE US TOLL IN SOMALIA WHICH HAD STOOD AT NINE THERE CURRENTLY ARE ABOUT 4500 US TROOPS IN SOMALIA THE US HAS BEEN NEGOTIATING WITH THE UNITED NATIONS TO WITHDRAW ABOUT HALF THOSE TROOPS IN THE COMING MONTHS AND REPLACE THEM WITH SOLDIERS FROM EGYPT INDIA AND NEPAL BUT HASN'T YET BEEN ABLE TO ANNOUNCE A TIMETABLE FOR THAT ROTATION THE US MISSION TO SOMALIA BEGAN IN DECEMBER IN RESPONSE TO THE WIDESPREAD FAMINE CAUSED BY FACTIONAL FIGHTING AND WAS EXPECTED TO LAST ONLY A FEW MONTHS THE US MILITARY PRESENCE WHICH PEAKED AT ABOUT 28000 IN JANUARY QUICKLY CLEARED THE WAY FOR HUMANITARIAN DELIVERIES OF FOOD BUT IN MAY THE US TURNED COMMAND OF THE OPERATION OVER TO THE UN AND SINCE THEN RESISTANCE BY SOME SOMALI FACTIONS HAS INCREASED SIGNIFICANTLY IN JUNE 24 PAKISTANI PEACEKEEPERS WERE KILLED IN AN AMBUSH THE UN THEN ASKED THE US TO REDEPLOY COMBAT TROOPS THE MAJORITY OF US DEATHS HAVE COME IN THE PAST TWO MONTHS 9310040120 931004 UNITED LUFTHANSA FORM MARKETING TIE DEALING A SETBACK TO AMERICAN AIRLINES BY ROBERT L ROSE AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL UNITED AIRLINES' NEW MARKETING AGREEMENT WITH LUFTHANSA MARKS A VICTORY OVER RIVAL AMERICAN AIRLINES IN THE US GIANTS' BATTLE TO BOOST THEIR PRESENCE IN EUROPE THE AGREEMENT TO BE ANNOUNCED TODAY WAS MADE POSSIBLE BY A RECENTLY NEGOTIATED AIRSERVICE TREATY BETWEEN THE US AND GERMANY FOR UNITED A UNIT OF CHICAGOBASED UAL CORP THE AGREEMENT MEANS ACCESS TO THE ROUTES OF ONE OF EUROPE'S DOMINANT CARRIERS LUFTHANSA ORCHESTRATED A MATING DANCE FOR MONTHS AS THE TWO BIGGEST US CARRIERS VIED TO PAIR UP WITH THE GERMAN AIRLINE THE AGREEMENT LEAVES AMR CORP'S AMERICAN AIRLINES WITHOUT A BIG WELLKNOWN PARTNER IN EUROPE AFTER YEARS OF EFFORTS TO ESTABLISH BUSINESS LINKS WITH LUFTHANSA ALTHOUGH THE DEAL DOESN'T CALL FOR EQUITY INVESTMENTS THE COMBINED MARKETING CLOUT OF LUFTHANSA AND UNITED CREATES NEW CHALLENGES FOR DELTA AIR LINES WHICH HAS AN EXTENSIVE EUROPEAN ROUTE SYSTEM AND AN EQUITY LINK WITH SWISSAIR UNDER THE SOCALLED CODESHARING AGREEMENT BETWEEN LUFTHANSA AND UNITED THE TWO AIRLINES PLAN TO USE EACH OTHER'S FLIGHT CODES IN THE ARCANE WORLD OF AIRLINE COMPUTER RESERVATIONS THAT PUTS CONNECTING FLIGHTS BETWEEN THE TWO CARRIERS HIGHER ON TRAVEL AGENTS' SCREENS INCREASING THE CHANCES OF A SALE THE TWO WOULD ALSO TAKE PART IN EACH OTHER'S FREQUENTFLIER PROGRAMS AND AIRPORT CLUBS INTERNATIONAL MARKETING AGREEMENTS ARE BECOMING INCREASINGLY COMMON AS FINANCIALLY PRESSED AIRLINES SEEK TO EXPAND WITHOUT HUGE INVESTMENTS NEEDED TO START NEW ROUTES IN JULY CONTINENTAL AIRLINES SIGNED A MARKETING PACT WITH AIR FRANCE LESS COMMON ARE EQUITY AGREEMENTS SUCH AS THOSE BETWEEN BRITISH AIRWAYS PLC AND USAIR GROUP INC AND BETWEEN KLM ROYAL DUTCH AIRLINES AND THE NORTHWEST AIRLINES UNIT OF WINGS HOLDINGS INC IN THOSE ALLIANCES BRITISH AIR AND KLM INVESTED LARGE SUMS IN THEIR US PARTNERS ONLY TO SEE THOSE PARTNERS STRUGGLE WITH STEEP LOSSES UNITED AND LUFTHANSA ALSO ARE STRUGGLING TO TURN A PROFIT GIVEN THE SOFTNESS IN THE MARKET AND THE LOUSY FINANCIAL PERFORMANCE OF BOTH PARTNERS IT'S NOT GOING TO BE GOING GANGBUSTERS SAID JOHN STODDEN AIRLINE ANALYST AT DUFF & PHELPS INC IN CHICAGO UNITED'S HOMETOWN STILL THE AGREEMENT LINKS FLIGHTS OF TWO CARRIERS WITH SPRAWLING INTERNATIONAL ROUTE SYSTEMS UNITED HAS ABOUT 2000 DAILY FLIGHTS TO FIVE CONTINENTS AND LUFTHANSA HAS ABOUT 900 DAILY FLIGHTS TO SIX CONTINENTS THE CODESHARING WHICH IS SUBJECT TO US GOVERNMENT APPROVAL WOULD START JAN 10 WITH UNITED USING ITS CODE ON LUFTHANSA FLIGHTS TO EIGHT GERMAN CITIES BEYOND FRANKFURT AND LUFTHANSA DISPLAYING ITS CODE ON UNITED DOMESTIC FLIGHTS TO 11 US CITIES AN AMERICAN AIRLINES SPOKESMAN DIDN'T HAVE ANY COMMENT ON THE LUFTHANSAUNITED PACT AMERICAN WHOSE ONLY CODESHARING PARTNER IN EUROPE NOW IS THE HUNGARIAN AIRLINE MALEV IS IN TALKS WITH OTHERS BUT THERE ARE FEW BIG EUROPEAN CARRIERS NOT ALREADY PAIRED OFF WITH US CARRIERS DELTA ACKNOWLEDGED THAT A LUFTHANSAUNITED COMBINATION COULD THREATEN ITS FRANCHISE BETWEEN THE US AND EUROPE WHILE THERE DEFINITELY WILL BE AN INCREASE IN COMPETITION WE STILL ARE THE BESTPOSITIONED CARRIER IN EUROPE A SPOKESMAN SAID DELTA HAS 99 NONSTOP FLIGHTS FROM THE US TO EUROPE AND 14 ONESTOP FLIGHTS EACH WEEK IT ALSO FLIES TO 58 CITIES BEYOND ITS FRANKFURT HUB 9310040119 931004 DIVIDEND NEWS ADVANCED MEDICAL INC ADVANCED MEDICAL INC SAN DIEGO DELAYED ITS SEMIANNUAL DIVIDEND OF 50 CENTS A SHARE ON ITS 10 CUMULATIVE PREFERRED STOCK PENDING COMPLETION OF ITS RESTRUCTURING PLAN 9310040118 931004 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN DEFYING STRIKE THREATS THE GERMAN BUNDESTAG OR LOWER HOUSE OF PARLIAMENT PASSED A BILL TO CUT TWO DAYS' HOLIDAY PAY FROM MOST WORKERS' SALARIES THE MEASURE WENT TO THE BUNDESRAT THE UPPER HOUSE WHERE PASSAGE IS CONSIDERED LIKELY GERMAN UNIONS ARE THREATENING WIDESPREAD WALKOUTS TO PROTEST THE PROPOSAL REQUIRING GERMANS FOR THE FIRST TIME SINCE WORLD WAR II TO SACRIFICE PART OF THEIR PAY FOR 10 NATIONAL HOLIDAYS THE BILL IS PART OF A PLAN TO CREATE AN INSURANCE FUND SUPPORTED BY EMPLOYERS AND WORKERS TO COVER COSTS OF NURSING CARE FOR INVALIDS AND THE ELDERLY IT COMPENSATES COMPANY CONTRIBUTIONS BY LETTING EMPLOYERS WITHHOLD 20 OR TWO DAYS OF THEIR WORKERS' HOLIDAY PAY BECAUSE OF RECESSION AND HIGH COSTS OF REUNIFICATION GERMANY IS PARING GENEROUS EMPLOYEE BENEFITS GERMANY HAS THE WORLD'S MOST EXPENSIVE WORK FORCE AND BIG COMPANIES ARE SETTING UP OPERATIONS ABROAD TO AVOID HIGH LABOR COSTS CHINA DETAILED ITS PLAN TO REFORM THE BANKING SYSTEM BY SEPARATING COMMERCIAL BANKING FUNCTIONS FROM THE CENTRAL BANK WHICH WILL FOCUS ON MONEYSUPPLY STABILITY THE CENTRAL BANK WILL SET UP LONGTERM DEVELOPMENT IMPORTEXPORT AND AGRICULTURAL POLICY BRANCHES THE PLAN CALLS FOR CREATION OF INDEPENDENT COMPETITIVE COMMERCIAL BANKS MEANWHILE CHINA DECLARED SATISFACTION WITH ITS JUNE MOVES TO TIGHTEN CREDIT AND CONTROL PRICES TO COOL THE ECONOMY IT PREDICTED 15 INFLATION THIS YEAR AND 10 NEXT YEAR AND 12 TO 13 GROWTH IN 1993 GROSS NATIONAL PRODUCT SPANISH SALARIES IN THE SECOND QUARTER ROSE 67 FROM A YEAR EARLIER TO AN AVERAGE OF 1315 A MONTH THIS FOLLOWED A 72 INCREASE IN THE FIRST QUARTER AGAIN EASILY TOPPING INFLATION WHICH NOW RUNS AT 46 UNEMPLOYMENT STOOD AT 223 IN THE SECOND PERIOD MEANWHILE THE GOVERNMENT EMPLOYERS AND UNIONS OPENED LABOR TALKS ON ISSUES SUCH AS LIMITING PAY BOOSTS THE 1994 BUDGET PROPOSAL SEEKS TO FREEZE CIVIL SERVANTS' SALARIES LIMIT PENSION INCREASES TO 35 AND CUT UNEMPLOYMENT BENEFITS MOST ELDERLY ROMANIANS COMPLAIN OF SEVERE HARDSHIPS UNDER MARKETORIENTED REFORMS SINCE THE DICTATORIAL REGIME COLLAPSED IN 1989 A POLL FOUND STATE PENSIONS ARE INADEQUATE EVEN FOR BASIC NEEDS 95 OF RESPONDENTS OLDER THAN 65 TOLD THE IRSOP POLLING AGENCY MONTHLY PENSIONS AVERAGE 40 LESS THAN HALF THE AVERAGE SALARY IN ROMANIA THOUGH THE ECONOMIC TRANSITION HAS ENRICHED SOME PEOPLE AND RAISED HOPES FOR HIGHER LIVING STANDARDS MANY ROMANIANS REMAIN IMPOVERISHED TAIWAN BLAMED LAX CHINESE AVIATION SECURITY FOR A SPATE OF HIJACKINGS AND URGED CHINA TO DISCUSS AN AGREEMENT TO EXTRADITE AIR PIRATES AFTER A CHINESE HIJACKING OF A COMMERCIAL PLANE LAST WEEK TO TAIWAN THE FOURTH SUCH SEIZURE THIS YEAR BEIJING DEMANDED THE HIJACKER BE RETURNED BUT TAIWAN SAID IT WOULDN'T HAND OVER ANY CHINESE HIJACKING SUSPECTS IN ITS CUSTODY WITHOUT AN EXTRADITION PACT A RESOLUTION IS LEGALLY MURKY BECAUSE THE RIVAL TAIPEI AND BEIJING GOVERNMENTS SINCE 1949 HAVE REFUSED TO RECOGNIZE EACH OTHER BULGARIA'S PARLIAMENT PASSED LEGISLATION INTRODUCING A FLAT 18 VALUEADDED TAX STARTING APRIL 1 IN A BID TO BOOST STATE REVENUE AND UNLOCK STALLED CREDIT FROM THE INTERNATIONAL MONETARY FUND THE VAT WILL REPLACE SALES TAX RATES AS HIGH AS 22 IT EXEMPTS FOR THREE YEARS 11 KINDS OF GOODS AND SERVICES RANGING FROM FOOD STAPLES AND HOME ENERGY SUPPLIES TO APPAREL AND TEXTBOOKS THE VAT IS ONE OF THE IMF'S MAIN REQUIREMENTS FOR A NEW STANDBY LOAN AGREEMENT WITH BULGARIA SINCE PREVIOUS ACCORDS VALUED AT 560 MILLION EXPIRED IN MARCH BULGARIA HAS BEEN UNABLE TO MEET OTHER IMF CONDITIONS SUCH AS PASSAGE OF A BANKRUPTCY LAW AND FASTER PRIVATIZATIONS BULGARIA NEEDS FOREIGN AID AND INVESTMENT TO HELP CONVERT ITS COMMAND ECONOMY TO A MARKET SYSTEM PRODUCTION LAST YEAR SANK 22 UNEMPLOYMENT STOOD AT 16 AND INFLATION SOARED TO 80 IN ITS 15 WEEKLY FLIGHTS BETWEEN LONDON AND 15 SAUDI CITIES BRITISH AIRWAYS PLANS TO SET UP SPECIAL SEATING AREAS TO LET WOMEN AND CHILDREN TRAVEL SEPARATELY FROM UNATTACHED MEN IN ISLAMIC SAUDI ARABIA MEN AND WOMEN ARE SEGREGATED IN PUBLIC TO HIGHLIGHT THE NEED FOR EXPANDING LISBON'S SUBWAY TO EASE GROWING GRIDLOCK PORTUGAL'S SOCIALIST PARTY STAGED A 16MILE RACE BETWEEN A BURRO AND A FERRARI FROM A SUBURB TO THE CAPITAL THE BURRO BEAT THE SPORTS CAR BY FOUR MINUTES 9310040117 931004 FLEMING SETS PACT WITH KMART OKLAHOMA CITY FLEMING COS SAID IT SIGNED A SIXYEAR AGREEMENT TO SUPPLY FOOD PRODUCTS TO MOST OF KMART CORP'S SUPER KMART CENTERS TERMS WEREN'T DISCLOSED 9310040116 931004 JURY AWARDS 1 MILLION IN WESTINGHOUSE FIRING PHILADELPHIA A FORMER WESTINGHOUSE ELECTRIC CORP NUCLEAR ENGINEER WHO CONTENDED HE WAS FIRED AFTER RAISING SAFETY CONCERNS WAS AWARDED 1 MILLION BY A JURY HERE AFTER A TWOWEEK TRIAL IN THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY THE EIGHTMEMBER JURY FOUND THAT WESTINGHOUSE SUPERVISORS JOEL R TERRY WILLIAM R PEKAREK AND RICHARD W KERR CAUSED EMOTIONAL DISTRESS AND CONSPIRED TO TERMINATE TERRY DYSERT A SENIOR NUCLEAR FIELD SERVICE ENGINEER WESTINGHOUSE WAS DISMISSED AS A DEFENDANT BECAUSE OF A PREVIOUS LABOR DEPARTMENT PROCEEDING THE ALLEGATIONS STEMMED FROM 1986 WHEN WESTINGHOUSE WAS CONTRACTED TO INSTALL REQUIRED SAFETY EQUIPMENT AT A NUCLEAR POWER PLANT IN AUGUSTA GA MR DYSERT SAID THE EQUIPMENT WAS IMPROPERLY TESTED AND THAT IT LEAKED BUT AFTER HE REPORTED THIS TO HIS SUPERVISORS HE ULTIMATELY WAS FIRED HIS SUIT SAID IN A STATEMENT WESTINGHOUSE SAID MR DYSERT WAS FIRED FROM WESTINGHOUSE BECAUSE HE ASSAULTED A SUPERVISOR PLAIN AND SIMPLE WE WILL FULLY SUPPORT OUR EMPLOYEES IN THE APPEAL OF THIS OBVIOUSLY WRONG DECISION 9310040115 931004 MARKETING & MEDIA STREISAND TO PERFORM FOR POSSIBLE RECORD OF 20 MILLION IN PAY BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL BARBRA STREISAND PLANS TO STAGE TWO NEW YEAR'S CONCERTS AT THE NEW MGM GRAND CASINO AND THEME PARK IN LAS VEGAS THAT MAY GARNER THE STAGESHY SINGER ACTRESS AND DIRECTOR A STAGGERING 20 MILLION PEOPLE FAMILIAR WITH THE SITUATION SAID MS STREISAND HAS TENTATIVELY AGREED TO PERFORM AT THE MGM GRAND ON DEC 31 AND JAN 1 LESS THAN TWO WEEKS AFTER THE SCHEDULED OPENING OF THE WORLD'S BIGGEST HOTELCASINO PROJECT MS STREISAND WHO HAS RARELY PERFORMED IN PUBLIC OVER THE PAST 20 YEARS IS CONSIDERED ONE OF THE HOTTEST TICKETS IN SHOW BUSINESS AND THE COMPLEX FORMULA FOR HER COMPENSATION MAY GENERATE A RECORD HAUL FOR LIVE SHOWS BY A SINGLE ENTERTAINER INDUSTRY EXPERTS SAID HER APPEARANCE WOULD BE A COUP FOR MGM GRAND INC'S 1 BILLION PROJECT A 5000ROOM ENTERTAINMENT COMPLEX CONTROLLED BY INVESTOR KIRK KERKORIAN THAT FACES A HOST OF NEW COMPETITORS IT ALSO WOULD BE A BOON FOR LAS VEGAS WHICH FROM THE 1970S TO MID1980S DEVELOPED A REPUTATION AS A REFUGE FOR HASBEEN PERFORMERS STREISAND IS UNIQUE AND NEW YEAR'S WITH STREISAND WOULD BE HARD TO BEAT SAYS GARY BONGIOVANNI EDITOR OF POLLSTAR A TRADE PUBLICATION FOR THE CONCERT BUSINESS ALTHOUGH OTHER BIG ACTS SUCH AS BILLY JOEL OR PAUL MCCARTNEY MIGHT DRAW CROWDS HE SAYS SUCH ARTISTS HAVE TOURED WIDELY IN RECENT YEARS AND HAVE BEEN SEEN ON CABLE TELEVISION IN CONTRAST MS STREISAND HAS FOR YEARS KEPT AN EXTREMELY LOW PUBLIC PROFILE WHILE WORKING IN FILM AND MUSIC SHE REEMERGED IN THE LATE 1980S TO RAISE FUNDS FOR SOCIAL AND POLITICAL CAUSES HER INFLUENCE HAS SPREAD BEYOND HOLLYWOOD AND IN JANUARY MS STREISAND SANG AT PRESIDENT CLINTON'S INAUGURATION SOME OF THE PROCEEDS FROM THE LAS VEGAS APPEARANCES ARE THOUGHT TO BE EARMARKED FOR CHARITY THE PAYDAY WOULD BE A RICH ONE FOR MS STREISAND WHO IS ONE OF HOLLYWOOD'S MOST POWERFUL WOMEN IN 1992 SHE SIGNED A MOVIE AND RECORD DEAL WITH SONY CORP THAT WAS VALUED AT AN ESTIMATED 40 MILLION MGM GRAND EXECUTIVES DECLINED TO DISCUSS THE SITUATION WE HAVE NO SIGNED AGREEMENT SAID K EUGENE SHUTLER MGM GRAND'S EXECUTIVE VICE PRESIDENT AND CORPORATE COUNSEL MARTY ERLICHMAN MS STREISAND'S AGENT DIDN'T RETURN SEVERAL TELEPHONE CALLS SEEKING COMMENT IT'S HARD TO SAY EXACTLY HOW MUCH MS STREISAND WILL NET PERSONS CLOSE TO THE TALKS SAID THE MGM GRAND GARDEN ARENA SEATS MORE THAN 15000 FOR CONCERTS AND THE JAN 1 SHOW IS SET TO BE BROADCAST ON PAYPERVIEW TELEVISION AS WITH CHAMPIONSHIP BOXING MATCHES AND OTHER BIG ENTERTAINMENT EVENTS MGM GRAND WOULDN'T SIMPLY WRITE A BIG CHECK FOR THE ENTIRE AMOUNT PROFITS AND COSTS WILL DEPEND ON THE PAYPERVIEW PRICING AND REVENUES AS WELL AS ON THE SALES AT THE GATE FOR THE CONCERTS AMONG OTHER THINGS CASINOINDUSTRY EXECUTIVES GUESSED THAT MGM GRAND WOULD PROBABLY BE ABLE TO FILL ITS 5000 ROOMS FOR THE PEAK NEW YEAR'S HOLIDAY BY INVITATION ONLY IT'S UNCLEAR JUST HOW MUCH MGM GRAND INC WILL COUGH UP FOR THE STAR AND ONE PERSON CLOSE TO THE TALKS SAID THAT THE COMPANY'S OUTOFPOCKET COSTS MAY BE NEGLIGIBLE BUT CASINOINDUSTRY EXECUTIVES SAID THE COSTS COULD BE SIMILAR TO THOSE FOR A MAJOR CHAMPIONSHIP BOXING MATCH THAT IS IN THE MILLIONS BUT NOT TENS OF MILLIONS THE TERMS OF THE AGREEMENT AREN'T THOUGHT TO INCLUDE MGM GRAND STOCK WHICH HAS SKYROCKETED IN THE PAST FEW MONTHS AND CLOSED FRIDAY AT 4725 UP 1125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9310040114 931004 RIC SEEKS TO CONSOLIDATE 25 PARTNERSHIPS INTO TRUST ESCONDIDO CALIF A MAJOR SPONSOR OF REALESTATE LIMITED PARTNERSHIPS SAID IT WILL TRY TO CONSOLIDATE AS MANY AS 25 OF THEM INTO A NEW PUBLIC COMPANY IN A TRANSACTION VALUED AT AS MUCH AS 400 MILLION RIC ADVISOR INC WILL SEEK APPROVAL FOR THE ROLLUP FROM ROUGHLY 70000 INVESTORS IN THE PARTNERSHIPS WHICH OWN 633 PROPERTIES IN 41 STATES THE COMPANY IS SEEKING SECURITIES AND EXCHANGE COMMISSION APPROVAL TO CONVERT THE PARTNERSHIPS INTO A REALESTATE INVESTMENT TRUST IT IS THE THIRD LARGE ROLLUP PROPOSED SINCE THESE TYPES OF REORGANIZATIONS GROUND TO A HALT IN 1991 AFTER HEAVY CRITICISM FROM INVESTORS MANY EARLIER CONSOLIDATIONS SADDLED INVESTORS WITH BIG LOSSES WHEN SHARE PRICES PLUNGED WHILE SPONSORS LOGGED CONSIDERABLE PROFITS REFORM MEASURES WERE DEBATED AT STATE AND FEDERAL LEVELS AND CALIFORNIA ENACTED NEW REGULATIONS LAST YEAR THE RIC PARTNERSHIPS WHICH LEASE PROPERTY TO THE CHILDCARE RESTAURANT AUTOMOTIVE AND RETIREMENTCARE INDUSTRIES WERE FORMED BETWEEN 1969 AND 1990 TO ACQUIRE TRIPLENET LEASE COMMERCIAL REALESTATE PORTFOLIOS EACH PARTNERSHIP WILL PARTICIPATE IN THE ROLLUP ONLY IF LIMITED PARTNERS HOLDING A MAJORITY OF UNITS APPROVE THE AGREEMENT RIC EXPECTS TO SOLICIT CONSENT LATE THIS YEAR OR EARLY NEXT YEAR 9310040113 931004 S&P TO CHANGE 500 INDEX NEW YORK STANDARD & POOR'S CORP SAID IT WILL REMOVE MARRIOTT CORP FROM ITS S&P 500 INDEX FOLLOWING THE SPINOFF OF MARRIOTT INTERNATIONAL MARRIOTT INTERNATIONAL WHICH WILL MANAGE MARRIOTT'S HOTELS FOODSERVICE OPERATIONS AND RETIREMENT CENTERS WILL REPLACE MARRIOTT CORP EXPECTED AFTER THE CLOSE OF TRADING FRIDAY S&P SAID 9310040112 931004 PRATT & LAMBERT IN MERGER TALKS BUFFALO NY PRATT & LAMBERT INC SAID IT IS ENGAGED IN MERGER TALKS WITH A PRODUCER OF ARCHITECTURAL FINISHES THE POTENTIAL PARTNER WASN'T IDENTIFIED WHILE THERE ARE NO ASSURANCES THAT AN AGREEMENT CAN BE SUCCESSFULLY REACHED THE NEGOTIATIONS PRESENTLY CONTEMPLATE THAT PRATT & LAMBERT WOULD RECEIVE 100 OF THE MERGED COMPANY'S STOCK IN EXCHANGE FOR AN ASYETUNDETERMINED AMOUNT OF CASH AND PRATT & LAMBERT COMMON STOCK THE COMPANY SAID PRATT & LAMBERT MAKES ARCHITECTURAL FINISHES CHEMICAL COATINGS AND ADHESIVES FOR THE INDUSTRIAL AND CONSUMER MARKETS IT HAD 1992 REVENUE OF 235 MILLION THE COMPANY'S SHARES CLOSED FRIDAY AT 1850 DOWN 1125 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING 9310040111 931004 PERU'S PRICES ROSE IN SEPTEMBER LIMA PRICES ROSE 16 IN SEPTEMBER THE LOWEST MONTHLY INFLATION RATE IN 17 YEARS THE GOVERNMENT SAID ACCUMULATED INFLATION OVER THE FIRST THREE QUARTERS STOOD AT 319 AND OVER THE PAST 12 MONTHS AT 485 ACCORDING TO THE NATIONAL INSTITUTE OF STATISTICS AND INFORMATION THE GOVERNMENT CALCULATED THAT YEAREND INFLATION WILL BE 40 DOWN FROM 57 LAST YEAR AND 139 IN 1991 9310040110 931004 COLUMBIA HEALTHCARE TO ACQUIRE HCA COMBINING 2 BIGGEST US HOSPITAL FIRMS TRANSACTION VALUED AT 57 BILLION LIKELY TO BE JUST A FIRST STEP BY ROBERT TOMSHO AND ANITA SHARPE STAFF REPORTERS OF THE WALL STREET JOURNAL COLUMBIA HEALTHCARE CORP SAID IT WOULD ACQUIRE HCAHOSPITAL CORP OF AMERICA FOR 57 BILLION IN STOCK MERGING THE NATION'S TWO LARGEST FORPROFIT HOSPITAL CHAINS INTO A HEALTHCARE GIANT THAT INTENDS TO CONTINUE BUYING HOSPITALS WITH COMBINED ANNUAL REVENUE ESTIMATED TO EXCEED 10 BILLION THE NEW ENTITY TO BE NAMED COLUMBIA/HCA HEALTHCARE CORP WILL OWN AND OPERATE 190 HOSPITALS WITH MORE THAN 42000 BEDS IN 26 STATES AND TWO FOREIGN COUNTRIES THE COMBINED ENTITY'S LARGEST COMPETITORS WOULD BE HEALTHTRUST INC WITH 9919 BEDS AND ANNUAL REVENUE OF 23 BILLION AND NATIONAL MEDICAL ENTERPRISES INC WITH 6559 BEDS AND REVENUE OF 38 BILLION IN A SIGN OF THE RAPIDLY ACCELERATING CONSOLIDATION IN THE HEALTHCARE INDUSTRY SATURDAY'S ANNOUNCEMENT CAME JUST ONE MONTH AFTER COLUMBIA HEALTHCARE BASED IN LOUISVILLE KY WAS FORMED THROUGH THE MERGER OF COLUMBIA HOSPITAL CORP AND GALEN HEALTH CARE INC WHOSE ASSETS INCLUDED HOSPITALS FORMERLY OWNED BY HUMANA INC MORE MIGHT COME I ANTICIPATED MORE MERGERS BUT I DIDN'T ANTICIPATE ANYTHING THIS BIG THIS QUICKLY SAID JOHN HINDELONG AN ANALYST WITH DONALDSON LUFKIN & JENRETTE AFTER THIS ANYTHING IS FAIR GAME EVERY EXECUTIVE IN THE INDUSTRY IS NOW LOOKING OVER HIS OR HER SHOULDER IN AN INTERVIEW RICHARD SCOTT COLUMBIA'S CHIEF EXECUTIVE OFFICER SAID COLUMBIA WILL CONTINUE TO PURSUE ADDITIONAL ACQUISITIONS AGGRESSIVELY ALTHOUGH PRIMARILY BY BUYING INDIVIDUAL FACILITIES THAT WILL ALLOW COLUMBIA TO INCREASE ITS MARKET SHARE IN CERTAIN LOCATIONS I THINK WE ARE GOING TO CONTINUE TO SEE A LOT OF GROWTH THROUGH ACQUISITIONS SAID MR SCOTT I THINK WHAT WE WILL SEE MOSTLY IS INDIVIDUAL TAXEXEMPT HOSPITALS SELLING TO US CITY BY CITY INDUSTRY ANALYSTS PRAISED THE MERGER AS A MOVE THAT WILL PROVIDE FASTGROWING COLUMBIA WITH BROADER OPPORTUNITIES TO ACHIEVE ECONOMIES OF SCALE AND NEGOTIATE ADDITIONAL CONTRACTS WITH MANAGEDCARE PROVIDERS IT IS A LOGICAL AND OUTSTANDING FIT SAID TODD RICHTER AN ANALYST WITH DEAN WITTER UNDER THE TERMS OF THE MERGER WHICH IS SUBJECT TO APPROVAL BY SHAREHOLDERS OF BOTH COMPANIES HOLDERS OF HCA BASED IN NASHVILLE TENN WILL RECEIVE 105 SHARES OF COLUMBIA STOCK FOR EACH HCA SHARE HELD HCA CURRENTLY HAS ABOUT 179 MILLION SHARES OUTSTANDING COLUMBIA WHICH CURRENTLY HAS ABOUT 149 MILLION SHARES OUTSTANDING SAID IT WOULD ISSUE ABOUT 189 MILLION NEW SHARES TO COMPLETE THE TRANSACTION WHICH WILL BE ACCOUNTED FOR AS A POOLINGOFINTERESTS THE COMPANIES SAID THAT THEY WOULD MAINTAIN CORPORATE OFFICES IN BOTH LOUISVILLE AND NASHVILLE TEMPORARILY ALTHOUGH A BOARD COMMITTEE WILL DETERMINE THE LOCATION FOR THE CORPORATE HEADQUARTERS AFTER THE MERGER THE MERGER WAS ANNOUNCED SATURDAY IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY COLUMBIA STOCK ROSE 1 A SHARE TO 3025 WHILE HCA ROSE 25 CENTS TO 2275 A SHARE IN A BROADLY HIGHER MARKET AT FRIDAY'S CLOSING PRICES THE COLUMBIA BID REPRESENTS A 40 PREMIUM TO HCA'S PERSHARE STOCK PRICE AFTER THE MERGER THOMAS F FRIST JR HCA'S CHAIRMAN AND CHIEF EXECUTIVE WILL BE CHAIRMAN OF THE NEW ENTITY AND MR SCOTT WILL BE PRESIDENT AND CHIEF EXECUTIVE OFFICER CARL F POLLARD CURRENTLY COLUMBIA'S CHAIRMAN WILL SERVE AS CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE NEW ENTITY'S BOARD WHICH WILL CONSIST OF THE 11 CURRENT COLUMBIA DIRECTORS AND FOUR HCAAPPOINTED DIRECTORS TALKS BETWEEN THE TWO COMPANIES BEGAN THREE WEEKS AGO WHEN DR FRIST APPROACHED MR SCOTT ABOUT THE POSSIBILITY OF A MERGER IN AN INTERVIEW DR FRIST SAID THAT AFTER READING THE CLINTON HEALTH CARE REFORM PLAN IT BECAME INCREASINGLY OBVIOUS IT WAS VERY IMPORTANT TO HAVE A NETWORK STRATEGY AND THAT HE WAS IMPRESSED BY MR SCOTT'S CLEARCUT STRATEGY FOR HOSPITAL MANAGEMENT THE DISCUSSIONS WERE ALSO HELPED ALONG BY TEXAS FINANCIER RICHARD RAINWATER WHO FOUNDED COLUMBIA HOSPITAL CORP WITH MR SCOTT IN 1988 AND OWNS ABOUT 15 OF NEWLY CREATED COLUMBIA HEALTHCARE'S SHARES OUTSTANDING MR RAINWATER ALSO OWNS A 33 STAKE IN HCA AND SERVED ON THE COMPANY'S BOARD UNTIL THIS SUMMER WHEN HE RESIGNED HE PARTICIPATED IN SOME OF THE MEETINGS SAID MR SCOTT HE WAS VERY HELPFUL HCA OFFICIALS SAID THE MERGER WAS DRIVEN MOSTLY BY A MARKETPLACE WHICH IS REFORMING ON ITS OWN WITH OR WITHOUT FEDERAL LEGISLATION SAID VICE PRESIDENT VICTOR L CAMPBELL WHO IS ALSO CHAIRMAN OF THE FEDERATION OF AMERICAN HEALTH SYSTEMS AN ORGANIZATION REPRESENTING INVESTOROWNED HOSPITALS AND HEALTHCARE ORGANIZATIONS THE MERGER ANNOUNCEMENT COMES LESS THAN TWO YEARS AFTER HCA'S FEBRUARY 1992 INITIAL PUBLIC OFFERING WHEN IT RAISED ABOUT 800 MILLION THE COMPANY WHICH WENT PRIVATE IN 1989 IN A 51 BILLION LEVERAGED BUYOUT HAS BEEN PAYING DOWN ITS DEBT FROM THAT TRANSACTION AND CURRENTLY OWES ABOUT 22 BILLION FOLLOWING ITS PUBLIC OFFERING HCA SOLD OFF 30 OF ITS 52 PSYCHIATRIC OPERATIONS AND BEGAN BRANCHING OUT INTO OUTPATIENT SERVICES ALTHOUGH IT NEVER MANAGED TO LASH TOGETHER A NETWORK AS DIVERSE AS COLUMBIA'S IT IS NOT AS FAR DOWN THE CURVE AS COLUMBIA SAID MR HINDELONG THE ANALYST AT DONALDSON LUFKIN & JENRETTE UNDER MR SCOTT COLUMBIA HOSPITAL CORP GAINED A REPUTATION AS A HOSPITAL OPERATOR THAT ACQUIRED SEVERAL FACILITIES IN A GIVEN MARKET CUT COSTS WITH CENTRALIZED MANAGEMENT AND SOUGHT TO COMPLEMENT ITS ACUTECARE FACILITIES WITH THE RAPID ACQUISITION OF OUTPATIENT SURGERY CENTERS DIAGNOSTIC IMAGING CENTERS AND OTHER FACILITIES THAT ALLOWED IT TO OFFER A BROAD RANGE OF SERVICES TO MANAGED CARE PROVIDERS COLUMBIA AND HCA PROJECT THAT THEY WILL SAVE 130 MILLION ANNUALLY BY COMBINED PURCHASING OF PRODUCTS AND SERVICES AND CENTRALIZED MANAGEMENT WITHIN MARKETS MR SCOTT ADDED HOWEVER THAT BECAUSE OF COLUMBIA'S ADDITIONAL EXPANSION PLANNED HE DOES NOT THINK THE COMBINED WORK FORCE OF 125000 EMPLOYEES WILL BE REDUCED BY MUCH IN THE PAST COLUMBIA HAS ALSO WON THE SUPPORT OF PHYSICIANS BY SELLING THEM STAKES IN ITS FACILITIES A TACTIC THAT HAS COME UNDER FIRE FROM SOME HEALTHCARE EXPERTS WHO CONTEND THAT IT LEADS TO UNNECESSARY MEDICAL PROCEDURES MR SCOTT SAID HOWEVER THAT PHYSICIANS HAVE OWNERSHIP INTERESTS IN FEWER THAN 20 OF THE 94 HOSPITALS CURRENTLY OPERATED BY COLUMBIA HEALTHCARE AND THAT THE DOCTORS' STAKE IN THOSE FACILITIES IS LESS THAN 17 DESPITE OVERLAP BETWEEN THE COLUMBIA AND HCA SYSTEMS IN CITIES SUCH AS DALLAS AND HOUSTON EXECUTIVES FROM THE TWO COMPANIES SAID THAT THEY DID NOT ANTICIPATE MAJOR ANTITRUST PROBLEMS ALTHOUGH THE MERGER REMAINS SUBJECT TO A REVIEW BY THE FEDERAL TRADE COMMISSION BEFORE COMPLETING THE GALEN MERGER COLUMBIA SOLD ONE KISSIMMEE FLA HOSPITAL AFTER THE FTC RAISED CONCERNS ABOUT THE COMPANY'S MARKET SHARE THERE MR SCOTT SAID THAT ALTHOUGH THE FTC HAS NOT YET SEEN DETAILS OF THE PROPOSED MERGER HE DOES NOT ANTICIPATE HAVING TO SELL ANY FACILITIES OR ABANDON ANY MARKETS INDUSTRY ANALYSTS SEEMED TO AGREE WITH THAT ASSESSMENT THERE MAY BE A NEED FOR A DIVESTITURE HERE OR THERE BUT I WOULDN'T EXPECT MAJOR ASSET SALES WOULD BE REQUIRED TO MAKE THE REGULATORY AUTHORITIES HAPPY SAID MR HINDELONG THE ANALYST OPERATES 94 ACUTECARE AND SPECIALTY HOSPITALS WITH 21627 LICENSED BEDS OPERATES 96 ACUTECARE AND SPECIALTY HOSPITALS WITH 20485 LICENSED BEDS CARE INC COMPLETED SEPT 1 SEE RELATED ARTICLE PLANNED DEAL SHOWS HOW SWIFTLY INDUSTRY MOVES TO CONSOLIDATE WSJ OCT 4 1993 9310040109 931004 INTERNATIONAL SALINAS UNVEILS PROGRAM TO CUT MEXICO'S TAXES BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY PRESIDENT CARLOS SALINAS UNVEILED A TAXCUTTING PROGRAM YESTERDAY AIMED AT BOTH STIMULATING THE ECONOMY AND IMPROVING REAL WAGES FOR THE LOWESTPAID LABORERS MR SALINAS ANNOUNCED THE PROGRAM AS PART OF HIS NEW PACTO OR PACT AMONG LABOR UNIONS FARMER GROUPS AND THE BUSINESS SECTOR THE ANNOUNCEMENT ALSO MARKS THE UNOFFICIAL OPENING OF THE CAMPAIGN SEASON FOR MR SALINAS WHO IS IN THE FINAL YEAR OF HIS ADMINISTRATION UNDER MR SALINAS'S PROGRAM WHICH TAKES EFFECT JAN 1 THE NUMBER OF WORKERS EXEMPTED FROM PERSONAL INCOME TAXES WILL DOUBLE TO 26 MILLION AROUND 15 OF THE LOWESTPAID WORKERS AND THE REFORMS RAISE BY ABOUT 11 THE DISPOSABLE INCOME OF THE VERY POOREST SECTOR THROUGH A MORE GENEROUS SYSTEM OF TAX CREDITS IN GENERAL PAST PACTOS HAVE BEEN DESIGNED TO BRING INFLATION UNDER CONTROL THE LATEST HOWEVER COULD BE A SETBACK IN THAT REGARD AS IT RELEASES THE WAGE CAPS OF PREVIOUS PACTOS SINCE THE FIRST SUCH PACTS WERE INITIATED ABOUT FIVE YEARS AGO TRIPLEDIGIT INFLATION HAS BEEN BEATEN BACK TO JUST UNDER 10 MR SALINAS A HARVARDTRAINED ECONOMIST SET 5 INFLATION IN 1994 AS HIS ADMINISTRATION'S GOAL THE CHANGES ALSO COULD TURN MEXICO'S PUBLICSECTOR SURPLUS INTO A DEFICIT NEXT YEAR SAID PRIVATE ECONOMIST ROGELIO RAMIREZ DE LA O MEXICO WILL PROBABLY HAVE A DEFICIT OF 1 OF GROSS NATIONAL PRODUCT UNDER THE NEW PROGRAM IN 1994 BUT AS ELECTIONS ARE LOOMING THE NEW PLAN SHOULD BOOST THE RULING PARTY'S POPULARITY MR RAMIREZ SAID ADDING IT SQUARES WELL WITH THE ELECTION YEAR THE MEXICAN ECONOMY COULD STAND A LITTLE STIMULUS IN THE FIRST SIX MONTHS OF 1993 THE MEXICAN ECONOMY GREW A DISMAL 13 TO PERK THINGS UP UNDER THE SALINAS PROGRAM THE CORPORATE TAX RATE WILL BE REDUCED TO 34 FROM 35 AND WITHHOLDING TAX RATES WILL BE REDUCED TO 49 FROM 15 CORPORATIONS WILL ALSO BE ABLE TO DEDUCT UP TO 50 RATHER THAN 35 OF ENVIRONMENTAL INVESTMENTS IN THE FIRST YEAR AND SOME PRICES ON GOVERNMENTFUNDED FUELS AND SERVICES SUCH AS ELECTRICITY AND RAILROADCARGO FEES WILL ALSO BE REDUCED TO MORE INTERNATIONALLY COMPETITIVE LEVELS MR SALINAS AND HIS SENIOR ADVISERS STILL HAVEN'T DISCLOSED THEIR PLANS FOR LINKING PRODUCTIVITY TO WAGE INCREASES MR SALINAS FIRST ANNOUNCED HIS INTENTION TO DO THIS IN AUGUST THE ISSUE IS CONSIDERED TO BE OF KEY IMPORTANCE FOR PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT BY THE US CONGRESS IN SIGNING THE PACT YESTERDAY PRESIDENT SALINAS ALSO TOUCHED LIGHTLY ON A NEW FARMAID PROGRAM WHICH WILL PROVIDE NEARLY 4 BILLION IN DIRECT SUPPORTS TO THE AILING COUNTRYSIDE ABOUT A THIRD OF THE MEXICAN POPULATION STILL LIVES IN RURAL AREAS WHERE TWOYEAROLD REFORMS TO THE MEXICO'S COMMUNAL FARMING SYSTEM HAVE YET TO RESULT IN REAL IMPROVEMENTS AND HAVE EXACERBATED IMMIGRATION 9310040108 931004 MARKETING & MEDIA AMERICAN EXPRESS'S FEDERAL CONTRACT CONFIRMS ITS HOLD ON CORPORATE TRAVEL BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE AWARD OF THE FEDERAL GOVERNMENT'S TRAVEL AND ENTERTAINMENT ACCOUNT TO AMERICAN EXPRESS CO SOLIDIFIES THE COMPANY'S HOLD ON THE CORPORATE TRAVEL MARKET RED WHITE AND BLUE BALLOONS WERE HOISTED AT AMERICAN EXPRESS HEADQUARTERS FRIDAY AFTER THE GOVERNMENT AWARDED THE CONTRACT WITH AMERICAN EXPRESS'S CARDMEMBER BASE SHRINKING AND ITS REVENUE LACKLUSTER THE NEW ACCOUNT BY FAR THE LARGEST TRAVEL ACCOUNT IN THE US REFLECTS THE INCREASED IMPORTANCE OF THE CORPORATE TRAVEL MARKET TO THE CHARGECARD GIANT THE LONGAWAITED DECISION BY THE GENERAL SERVICES ADMINISTRATION GIVES AMERICAN EXPRESS A CLIENT WITH 25 BILLION IN ANNUAL BILLINGS AND MORE THAN 900000 NEW CARDHOLDERS THE SUCCESS IN WINNING THE DEAL DEMONSTRATES AMERICAN EXPRESS'S SERIOUSNESS IN NOT ONLY PROTECTING ITS BUSINESS BUT EXPANDING IT IN THE CORPORATE MARKET SAID THOMAS FACCIOLA AN ANALYST AT SG WARBURG & CO STRONG CORPORATE MARKET UNLIKE THE CONSUMERCARD MARKET IN WHICH AMERICAN EXPRESS HAS LOST MARKET SHARE THE CORPORATE TRAVEL MARKET IS THE COMPANY'S TO LOSE IT HAS 89 OF THE FORTUNE 100 AND TWOTHIRDS OF THE FORTUNE 500 AS WELL AS 88 OF THE STATE GOVERNMENT ACCOUNTS THAT USE CHARGE CARDS HALF OF THE US CHARGE VOLUME NOW COMES FROM BUSINESS SPENDING THE COMPANY DOESN'T BREAK OUT ITS FINANCIAL RESULTS FROM THE CORPORATE MARKET BUT ROGER BALLOU PRESIDENT OF AMERICAN EXPRESS'S TRAVEL SERVICES GROUP SAID REVENUE AND EARNINGS ARE GROWING VERY RAPIDLY IN THE CORPORATE BUSINESS HE SAID THE CONTRACT WILL BE PROFITABLE BUT HE DIDN'T ELABORATE MR FACCIOLA THINKS THE NEW CONTRACT WILL ADD THREE CENTS TO FIVE CENTS A SHARE TO 1994 EARNINGS THERE WILL BE UPFRONT COSTS HOWEVER AMERICAN EXPRESS IS GIVING THE GSA 18 MILLION TO BASICALLY USE AS IT WANTS TO PAY FOR THE COSTS OF TRANSFERRING THE BUSINESS A SPOKESMAN FOR CITICORP'S DINERS CLUB WHICH LOST THE ACCOUNT CALLED IT AN EXTRAORDINARY AMOUNT OF MONEY TO SPEND TO WIN THE BUSINESS THE GOVERNMENT ALSO GETS A REBATE BASED ON THE VOLUME OF BILLINGS AND IF THE GSA AND AMERICAN EXPRESS REDUCE THE TIME IT TAKES BETWEEN CHARGING AND PAYMENT THE FLOAT IN BANKING PARLANCE THEY WILL SHARE THE COST REDUCTION GSA OFFICIALS SAID THE CONTRACT WOULD SAVE THE GOVERNMENT 120 MILLION OVER FIVE YEARS BUT MR BALLOU SAID NUMEROUS OTHER BENEFITS WILL FLOW FROM THE NEW CONTRACT MANAGEMENT INFORMATION SYSTEMS THAT WERE SET UP FOR THE GSA ACCOUNT CAN NOW BE APPLIED TO THE CORPORATE MARKET WINNING THE ACCOUNT COULD ALSO HELP SIGN UP MERCHANTS WHO DO NOT CURRENTLY ACCEPT AMERICAN EXPRESS AND WHILE THE COMPANY WAS EXPECTED TO LOSE A TOTAL OF 11 MILLION CARDS THIS YEAR THE LOSS NOW IS EXPECTED TO BE 200000 CARDS THAT COULD HELP IN MARKETING THE CARDS TO MERCHANTS AND POTENTIAL CLIENTS MR FACCIOLA SAID 9310040107 931004 CREDIT MARKETS LOW YIELDS SPARK FLURRY IN NEW NOTES STRUCTURED SECURITIES BECOME MORE POPULAR WITH FUND MANAGERS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL WITH INTEREST RATES AT ABYSMALLY LOW LEVELS LIFE'S TOUGH FOR BOND FUND MANAGERS SO WHAT ARE YIELDSTARVED MANAGERS TO DO PUT TENTACLES ON THEIR BONDS AND REACH INTO MORE FERTILE INVESTMENT TERRITORY THAT EFFECTIVELY IS THE GENESIS OF AN ESTIMATED 30 BILLION MARKET FOR ONE OF WALL STREET'S FASTESTSELLING PRODUCTS STRUCTURED MEDIUMTERM NOTES JUST TWO YEARS AGO MEDIUMTERM NOTES WERE GENERALLY REGARDED AS HUMDRUM DEBT INSTRUMENTS NOW SOME OF THESE NOTES MATURING IN ONE TO THREE YEARS ARE HOT VEHICLES FOR BETTING ON FOREIGN INTEREST RATES OIL FUTURES SILVER PRICES INDIVIDUAL STOCKS AND SOMETHING AS ARCANE AS THE RATE CHARGED FOR BUYING GOLD BULLION ON MARGIN EVEN THE SMALL INVESTOR WHO NEVER HEARD OF A STRUCTURED NOTE MAY OWN SOME THAT'S BECAUSE HOLDERS INCLUDE MANY MUTUAL FUNDS BOTH BOND FUNDS AND THE SOCALLED BALANCED FUNDS WHICH OWN BOTH STOCKS AND BONDS STRUCTURED NOTES ARE DESIGNED FOR AN INVESTMENT COMMUNITY IN STICKER SHOCK FROM INTEREST RATES DROPPING SO SIGNIFICANTLY SAYS CRAIG SCHIFFER A LEHMAN BROTHERS INC MANAGING DIRECTOR BUYERS TYPICALLY ARE VERY PERFORMANCEORIENTED MONEY MANAGERS SAYS RICHARD DEITZ HEAD OF STRUCTURED FIXED INCOME FOR CS FIRST BOSTON THE THING THAT'S DRIVEN THIS IS AN INEXORABLE SEARCH FOR YIELD HE SAYS ADDING THE TYPES OF STRUCTURES WE CAN COME UP WITH ARE INFINITE IN THEIR SIMPLEST FORM STRUCTURED NOTES DON'T PUT THE INVESTOR'S PRINCIPAL AT RISK THEY SIMPLY CUSTOMIZE THE COUPON TO TAKE ADVANTAGE OF AN INVESTOR'S VIEW ON COMING INTERESTRATE MOVEMENTS CURRENCY MOVEMENTS OR WHATEVER IF THE INVESTORS ARE RIGHT THEIR YIELDS CAN HIT DOUBLE DIGITS RISING WAY ABOVE WHAT THEY WOULD GET ON SAY THREEYEAR GARDENVARIETY DEBT BUT INCREASINGLY INVESTORS ARE STARTING TO TAKE BIGGER CHANCES PUTTING PRINCIPAL AT RISK AND ADDING LEVERAGE TO BOOT THE TERMS CAN GET MINDBOGGLING IN ONE RELATIVELY SIMPLE VERSION OFFERED BY HEWLETTPACKARD FINANCE CO A UNIT OF HEWLETTPACKARD CO THE COUPON PAYS 20 MINUS TWO TIMES THE LONDON INTERBANK OFFERED RATE IN ANOTHER ACCORDING TO THE FINANCE UNIT'S TREASURER CATHIE LESJACK THE RETURN IS TIED TO THE APPRECIATION IN HEWLETTPACKARD'S OWN STOCK WITH 18 MONTHS TO GO THE 100 MILLION ZEROCOUPON ISSUE GUARANTEES A FULL RETURN OF PRINCIPAL ONLY IF THE STOCK PRICE IS ABOVE 81 IT CLOSED FRIDAY AT 68875 BUT INVESTORS CAN'T LOSE MORE THAN 10 OF THEIR PRINCIPAL IN THE FIRST HALF OF THIS YEAR 8 BILLION TO 12 BILLION OF CUSTOMMADE CORPORATE NOTES WERE ISSUED REPRESENTING 20 TO 30 OF ALL MEDIUMTERM CORPORATE NOTES OFFERED ACCORDING TO THE FEDERAL RESERVE BOARD SEVERAL YEARS AGO LESS THAN 5 OF MEDIUMTERM CORPORATE DEBT WAS TAILORMADE FOR MONEY MANAGERS TO GET CORPORATE AMERICA TO ISSUE HIGHLY VOLATILE VARIATIONS OF THE MUNDANE MEDIUMTERM NOTE REQUIRED THE INGENUITY OF WALL STREET THE CHALLENGE PROVIDE AN OPPORTUNITY FOR BOND INVESTORS TO BET ON MARKETS WHILE PROTECTING THE CORPORATE NOTE ISSUERS FROM THE SAME RISK THE SOLUTION INVOLVES AN OLDER WALL STREET PRODUCT A SWAP OR CONTRACTUAL AGREEMENT BY TWO PARTIES TO EXCHANGE STREAMS OF PAYMENTS OVER TIME WHEN A CORPORATION ISSUES A STRUCTURED NOTE WITH AN EXOTIC COUPON IT SIMULTANEOUSLY ENTERS INTO ONE OR SEVERAL SWAP AGREEMENTS WITH THE INVESTMENT BANK PUTTING THE DEAL TOGETHER IN EFFECT THE INVESTMENT BANK AGREES TO MAKE THE EXOTIC PAYMENTS TO THE INVESTOR AND THE ISSUER MAKES A MORE CONVENTIONAL PAYMENT TO THE INVESTMENT BANK THE DEBT ISSUER ISN'T RISKLESS HOWEVER THE ISSUER MUST WORRY ABOUT WHETHER THE INVESTMENT BANK LIVES UP TO ITS AGREEMENT IF NOT THE ISSUER GETS STUCK WITH THE QUIRKY PAYMENTS GIVEN THIS RISK PLUS THE OVERALL HASSLE THE DEAL HINGES ON THE FACT THAT THE ISSUER PAYS LESS INTEREST THAN ON CONVENTIONAL DEBT WITH STRUCTUREDNOTE ISSUERS NOW NUMBERING IN THE DOZENS THE SAVINGS HAVE NARROWED TO AS LITTLE AS 003 PERCENTAGE POINT MR DEITZ OF FIRST BOSTON SAYS THAT'S DOWN FROM THE 015 PERCENTAGE POINT THAT SOME ISSUERS SAY WAS COMMON DURING THE PAST SEVERAL YEARS AT HEART THE STRUCTURED NOTE IS A FINANCIALLY ENGINEERED TRANSACTION INVOLVING A BASIC NOTE PACKAGED WITH SWAPS FUTURES AND OPTIONS AND INVESTMENT BANKS MAKE MONEY BY RESELLING THE PACKAGE AMONG HAPPY CUSTOMERS IS TIMOTHY SKIDMORE MANAGER OF CAPITAL MARKETS FOR DUPONT CO DURING THE PAST FOUR YEARS THE CHEMICAL COMPANY HAS ISSUED MORE THAN 1 BILLION OF STRUCTURED NOTES IN MORE THAN 50 DEALS WITH MATURITIES OF ONE TO THREE YEARS THIS PRODUCT HAS FAR EXCEEDED OUR WILDEST DREAMS MR SKIDMORE SAYS WE KIND OF VIEW THIS AS A HOME RUN HE SAYS THAT WHEN HE PITCHED THE NOTION OF STRUCTURED NOTES TO SENIOR MANAGEMENT IN LATE 1989 HE ESTIMATED A RELATIVELY MODEST NUMBER OF TRANSACTIONS ENOUGH HOWEVER TO GET DUPONT OVER A SEVERAL HUNDRED THOUSAND DOLLAR BREAKEVEN COST THAT'S THE COST OF TRAINING TAX ACCOUNTANTS LAWYERS AND DEBT ANALYSTS TO DISSECT DEALS AND INSTALLING COMPUTER SOFTWARE TO ASSIST THEM MR SKIDMORE SAYS DUPONT QUICKLY BROKE EVEN AND HAS SAVED MORE THAN 1 MILLION ANNUALLY IN AFTERTAX INTEREST EXPENSE IN THE INVESTMENT COMMUNITY ENTHUSIASTS INCLUDE BOSTON CO INSTITUTIONAL INVESTORS WHERE STRUCTURED NOTES REPRESENT AS MUCH AS 30 OF SOME PORTFOLIOS UP FROM 5 JUST THREE YEARS AGO AT FIDELITY INVESTMENTS SOME PORTFOLIOS HOLD 10 OF ASSETS IN STRUCTURED NOTES UP FROM 5 ONLY MONTHS AGO A MAJOR ADVANTAGE OF STRUCTURED NOTES IS THAT THEY'RE PACKAGED FOR CONVENIENCE SAYS DAVID JONES A FIDELITY VICE PRESIDENT IN CHARGE OF THE OPERATIONS DEVELOPMENT GROUP IN SOME CASES FIDELITY MIGHT HAVE BEEN ABLE TO ACHIEVE THE SAME INVESTMENT GOALS IF IT HAD BEEN ABLE TO BUY SWAPS DIRECTLY HE SAYS BUT THAT APPROACH HAS A POTENTIAL DRAWBACK FIDELITY COULD END UP WITH A DISPROPORTIONATE NUMBER OF AGREEMENTS WITH A HANDFUL OF WALL STREET FIRMS BY BUYING STRUCTURED NOTES ISSUED BY MYRIAD CORPORATIONS FIDELITY DIVERSIFIES ITS CREDIT RISK WITH MORE THAN 200 FUNDS AT FIDELITY A CONCERN IS ENSURING THAT MANAGERS PUT THE RIGHT EXPOSURE WHERE IT BELONGS MR JONES SAYS OTHERS HAVE MORE BASIC CONCERNS ANTHONY JIORLE DERIVATIVES STRATEGIST FOR VANGUARD GROUP SAYS STRUCTURED NOTES ARE EXPENSIVE UNTESTED IN KEY REGARDS AND POSSIBLY FADDISH HE IS WORRIED THAT STRUCTURED NOTES HAVE BEEN SOLD ONLY IN A BULL MARKET IF THE MARKET HEADS SOUTH AND EVERYBODY TRIES TO SELL AT THE SAME TIME THERE JUST WON'T BE ENOUGH BUYERS MR JIORLE SAYS ARE THE DEALERS GOING TO STAND THERE READY TO BUY THE NOTES BACK FROM EVERYBODY A LOT OF IDEAS COME AND GO ALL YOU CAN DO IS HOPE THEY DON'T CAUSE TOO MUCH HAVOC NONETHELESS VANGUARD IS CONSIDERING BUYING STRUCTURED NOTES A SIGN THAT VANGUARD IS MORE CAUTIOUS THAN MANY IS THE GROWTH IN THE NUMBER OF LESSCREDITWORTHY COMPANIES NOW ISSUING STRUCTURED NOTES ORIGINALLY ISSUERS WERE TRIPLEARATED GOVERNMENT AGENCIES INVESTORS DIDN'T WANT TO MIX CREDIT RISK WITH GAMBLES ON INTEREST RATE OR CURRENCY MOVEMENTS BUT AS INVESTORS HAVE BECOME COMFORTABLE WITH THE PRODUCT AND AS RATES HAVE CONTINUED TO FALL PEOPLE ARE MORE WILLING TO TAKE CREDIT AND STRUCTURE RISK BECAUSE THE RETURN PROMISES TO BE HIGHER MR SCHIFFER OF LEHMAN BROTHERS SAYS COMPANIES SUCH AS RJR NABISCO HOLDINGS CORP WITH THE LOWEST POSSIBLE INVESTMENTGRADE RATINGS NOW ARE AMONG ISSUERS ACCORDING TO GOLDMAN SACHS & CO OFFICIALS AT STANDARD & POOR'S CORP SAID FRIDAY THAT THE CREDITRATING AGENCY IS DEVELOPING A SYSTEM OF MEASURING THE MARKET RISKS IN BOND FUNDS BECAUSE OF THE EXPLOSIVE GROWTH OF THE USE OF SOCALLED DERIVATIVE BONDS S&P OFFICIALS SAID THEY HOPE TO LAUNCH THE SYSTEM EARLY NEXT YEAR CREDITRATINGS AGENCIES ARE FINDING THAT THE MAJOR RISKS OF INVESIVE SECURITIES HAVE LITTLE TO DO WITH CREDIT QUALITY AND MORE TO DO WITH OTHER FACTORS LIKE INTEREST RATE LEVELS AND MARKET CONDITIONS S&P RECENTLY COMPLETED A STUDY OF THE MARKET FOR FIXEDINCOME DERIVATIVE SECURITIES ACCORDING TO AN S&P REPORT ON THE STUDY TO BE RELEASED TODAY INDIVIDUAL INVESTORS IN MUTUAL FUNDS ARE PROBABLY NOT FULLY AWARE THAT THEIR MUTUAL FUND MANAGERS ARE INVESTING IN HYBRID SECURITIES THAT BEAR CONSIDERABLE MARKET RISK FITCH INVESTORS SERVICE INC LAUNCHED A SERVICE IN MAY TO MEASURE THE MARKET RISKS IN BOND FUNDS MEANWHILE PRICES OF US TREASURY NOTES AND BONDS ENDED HIGHER FRIDAY IN RESPONSE TO A REPORT OF WEAK MANUFACTURING ACTIVITY THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/2 POINT OR NEARLY 5 FOR A BOND WITH 1000 FACE VALUE TO 103 16/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE FELL TO 599 FROM 602 THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9310040106 931004 TELECOMMUNICATIONS A MAGIC BOX' TURNS WIRED INTO WIRELESS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL A TINY ILLINOIS COMPANY IS POISED TO RATTLE THE PHONE INDUSTRY WITH PATENTED GEAR THAT LETS USERS OF REGULAR PHONES BYPASS THE LOCAL MONOPOLY AND TALK OVER WIRELESS NETWORKS THE MAGIC BOX FROM TELULAR INC OF LIBERTYVILLE ILL APPARENTLY SHOWS SO MUCH PROMISE FOR EASILY CONVERTING LOCAL PHONE SUBSCRIBERS INTO WIRELESS CUSTOMERS THAT THE LITTLE COMPANY HAS WON A BIG BACKER MOTOROLA INC MOTOROLA HAS PAID AN UNDISCLOSED SUM TO ACQUIRE AN 18 STAKE IN CLOSELY HELD TELULAR AND PLANS TO BACK DEVELOPMENT EFFORTS AS IT PUSHES THE SYSTEM IN THE US AND OVERSEAS WE COULD SUPPLEMENT REGULAR LOCAL PHONE SERVICES TO PROVIDE BACKUP SYSTEMS WIRELESS ALARM SYSTEMS ANYPLACE WIRELESS COULD GIVE THE EFFECT OF HAVING A REGULAR PHONE SAYS ROBERT WEISSHAPPEL GENERAL MANAGER OF MOTOROLA'S CELLULAR SUBSCRIBER GROUP THE OPPORTUNITY COULD BE ENORMOUS HE ADDS SUCH A SYSTEM COULD ONE DAY PROFOUNDLY AFFECT THE PHONE INDUSTRY IN NUMEROUS WAYS THE TELULAR EQUIPMENT ALREADY IS USED TO PROVIDE EMERGENCY WIRELESS BACKUP FOR OFFICE AND HOSPITAL PHONE SYSTEMS IN THE FUTURE PHONE USERS COULD BYPASS THEIR BELL SYSTEM ENTIRELY AND USE CELLULAR AND OTHER WIRELESS SERVICES ALTHOUGH CELLULAR SERVICE FIRST WILL HAVE TO GET A LOT CHEAPER TO CLOSE THE PRICE GAP WITH LOCAL PHONE MONOPOLIES THE NEW APPROACH ALSO SHOWS GREAT PROMISE FOR LETTING TRADITIONAL PHONE COMPANIES EXTEND WIRELESS SERVICE TO RURAL COMMUNITIES WITHOUT RUNNING EXPENSIVE PHONE LINES MOTOROLA AND OTHER COMBATANTS IN THE WIRELESS WARS CAUTION THAT CELLULAR PHONES STILL HAVE A LONG WAY TO GO BEFORE THEY CAN COMPETE EFFECTIVELY WITH ORDINARY PHONE SERVICE CELLULAR'S MONTHLY BILLS ARE HALF WHAT THEY WERE A FEW YEARS AGO BUT THE 75 AVERAGE IS STILL PROHIBITIVE FOR MOST CONSUMERS ACCUSTOMED TO PAYING JUST UNDER 20 A MONTH FOR REGULAR PHONE SERVICE AND SOME 90 OF CALLS MADE BY CELLULAR PHONES EVENTUALLY END UP LANDING ON LOCAL PHONE LINES GENERATING ADDITIONAL REVENUES FOR THE MONOPOLIES IN A FEW YEARS THE IMPACT OF TELULAR'S PRODUCTS WILL BE A RUBIK'S CUBE SAYS KENNETH LEON TELECOMMUNICATIONS ANALYST AT LEHMAN BROTHERS THIS COULD CHANGE THE WHOLE LOCAL EXCHANGE MARKET IN A MORE ACCELERATED WAY THAN EVEN FUTURE PERSONAL COMMUNICATIONS SERVICES A NEW BREED OF WIRELESS OFFERINGS TELULAR IS ONE OF A HANDFUL OF COMPANIES THAT MAY HOLD GOLDEN KEYS TO THE WIRELESS FUTURE QUALCOMM INC SAN DIEGO PIONEERED CODEDIVISION MULTIPLEXING A DIGITAL TRANSMISSION SYSTEM THAT MAY SOMEDAY LET CELLULAR COMPANIES HANDLE 20 TIMES THE NUMBER OF CUSTOMERS NOW SERVED ANOTHER COMPANY STEINBRECHER CORP BURLINGTON MASS SUPPLIES SYSTEMS THAT LET CELLULAR PHONES FROM RIVAL INCOMPATIBLE SYSTEMS CONNECT ON VARIOUS FREQUENCIES STEINBRECHER IS BACKED BY MCCAW CELLULAR COMMUNICATIONS INC WHICH RECENTLY AGREED TO BE ACQUIRED BY AMERICAN TELEPHONE & TELEGRAPH CO AND WHICH INTENDS TO DEPLOY STEINBRECHER GEAR EXTENSIVELY IN ITS NETWORK TELULAR TRACES ITS ROOTS TO AN ATTEMPT TO CASH IN ON BURGLAR ALARMS IN THE MID1980S INVESTOR WILLIAM L DENICOLO WAS PURSUING THE IDEA OF AN ENTIRELY WIRELESS BURGLAR ALARM EVEN A NOVICE THIEF KNOWS TO CUT THE PHONE LINE TO DISABLE MOST SYSTEMS MR DENICOLO STUMBLED ON A PATENT HELD BY A MISSISSIPPI INVENTOR BILL WEST AND THEY BEGAN NEGOTIATIONS MR WEST DIED IN 1985 BUT MR DENICOLO ACQUIRED PATENT RIGHTS FROM HIS ESTATE AND FORMED TELULAR WITHSTANDING A SERIES OF PATENT CHALLENGES THROUGH 1989 TELULAR NOW TAKING IN 3 MILLION A MONTH IN SALES EXPANDED ITS SIGHTS AFTER A NEW PRESIDENT JAMES M PHILLIPS ARRIVED LAST YEAR THE FORMER PRESIDENT OF PAGING GIANT SKYTEL CORP MR PHILLIPS PERSUADED MR DENICOLO TO EXPAND BEYOND EMERGENCY BACKUP GEAR AND WIRELESS ALARMS AND INTO THE WIRELESS WARS AS A REPLACEMENT FOR WIRED PHONES TELULAR'S PATENTED DESIGN IS SO SIMPLE IT'S A WONDER THE TWO GIANTS MOTOROLA OR AT&T DIDN'T THINK OF IT FIRST REGULAR WIRED PHONES MUST BE ACTIVATED BY A DIAL TONE BEFORE THEY CAN MAKE A PHONE CALL CELLULAR PHONES ON THE OTHER HAND REQUIRE A USER TO PUNCH IN THE PHONE NUMBER AND PRESS A SEND BUTTON TO SET UP THE CALL TELULAR'S SYSTEM SOFTWARE SIMULATES A DIAL TONE ELECTRONICALLY TRICKING THE WIRED PHONE INTO ACTING AS IF IT'S CONNECTED TO THE ACTUAL PHONE NETWORK INSTEAD THE PHONE IS HOOKED UP TO THE TELULAR BOX WHICH THEN SENDS THE CALL TO THE CELLULAR SYSTEM USING A MOTOROLA RADIO TRANSCEIVER TELULAR SYSTEMS CAN ATTACH TO OFFICE PHONE SYSTEMS AND HOME PHONE LINES BUT FOR NOW ITS BIGGEST BUSINESS IS BACKUP SYSTEMS CELLULAR COMPANIES AND REGULAR PHONE CARRIERS INSTALL THEM IN HOSPITALS AND BUSINESSES WHEN WIRED SERVICE GOES OUT YOU JUST YANK IT OUT OF THE CLOSET PLUG IN AND YOU'RE ON THE CELLULAR SYSTEM DANIEL NORMAN STRATEGY DIRECTOR AT BELLSOUTH'S CELLULAR SUBSIDIARY IT'S A GREAT PRODUCT HE DOESN'T SEE THE LITTLE COMPANY WITH THE MAGIC BOX AS A COMPETITIVE THREAT TO THE LOCAL PHONE MONOPOLY NOT YET ANYWAY NOR DOES MCCAW CELLULAR WHICH ALSO PUSHES TELULAR GEAR BUT PLAYS DOWN SUGGESTIONS IT MIGHT USE THE APPROACH TO KNOCK HEADS WITH LOCAL PHONE COMPANIES WE'RE NOT LOOKING AT TELULAR AS A SUBSTITUTE FOR LAND LINE SERVICE AT THIS STAGE SAYS PETER SIMPSON MCCAW'S DIRECTOR OF PRODUCT DEVELOPMENT BUT HE ADDS THAT'S NOT TO SAY THE FUTURE SITUATION WON'T CHANGE THINGS 9310040104 931004 NLRB SHOULD USE RULEMAKING POWER SAYS CLINTON'S NOMINEE TO HEAD BOARD BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S NOMINEE TO HEAD THE NATIONAL LABOR RELATIONS BOARD TOLD CONGRESS THAT HE FIRMLY BACKS LABORMANAGEMENT TEAMS AND THAT THE BOARD SHOULD CONSIDER USING ITS RARELY FLEXED RULEMAKING MUSCLE MORE OFTEN STANFORD UNIVERSITY PROFESSOR WILLIAM GOULD IV WHOSE NOMINATION IS EXPECTED TO BREEZE THROUGH THE SENATE SPENT MUCH OF HIS TWOHOUR CONFIRMATION SESSION TRYING TO REASSURE REPUBLICANS THAT HIS PROUNION WRITINGS WOULDN'T BE REFLECTED IN HIS DECISIONS AT THE HELM OF THE PANEL THE DIFFERENCE BETWEEN PROF GOULD AND CHAIRMAN GOULD HE TOLD THE LABOR COMMITTEE IS THAT THE LATTER IS CONCERNED SOLELY WITH THE INTERPRETATION OF LAW AS IT IS PRESENTLY WRITTEN IN PICKING MR GOULD THE CLINTON ADMINISTRATION HAD ITS FIRST CHANCE TO TURN THE NLRB WHICH HAS A DAILY IMPACT ON THE WORKINGS OF COMPANIES AND THEIR UNIONIZED EMPLOYEES AWAY FROM WHAT UNION OFFICIALS COMPLAIN HAS BEEN A PROMANAGEMENT STANCE MR GOULD HAS A DEEP AND VARIED RESUME IN LABOR LAW PUNCTUATED BY EXPERIENCE ARBITRATING BASEBALLPLAYER SALARY DISPUTES REPUBLICANS LED BY SEN ORRIN HATCH OF UTAH CAUTIONED MR GOULD TO EXERCISE RESTRAINT I DON'T WANT YOU RUNNING WILD AT THE NLRB MR HATCH WARNED RANKING REPUBLICAN NANCY KASSEBAUM OF KANSAS WHO WAS ILL BUT SENT IN A STATEMENT ADDED OUR ECONOMY CAN ILLAFFORD THE DISRUPTION AND UNCERTAINTY THAT WILL RESULT IF THE BOARD IS USED AS A PLATFORM FOR LABORLAW REFORM THE REPUBLICANS AND MANY DEMOCRATS CHEERED MR GOULD'S STATEMENTS IN SUPPORT OF WORKERMANAGEMENT TEAMS THE NOMINEE'S DEFENSES OF TEAMS STAND IN SHARP CONTRAST TO SEVERAL RECENT NLRB RULINGS THAT PLACED TIGHT RESTRAINTS ON SUCH COOPERATIVE EFFORTS TEAMS HAVE BECOME STANDARD FOR MANY COMPANIES IN AREAS RANGING FROM SAFETY TO PRODUCT QUALITY IN A STATEMENT LIKELY TO PLEASE UNIONS MORE THAN COMPANIES MR GOULD ALSO SAID HE WANTS TO STREAMLINE THE AGENCY'S DECISIONMAKING UNIONS HAVE COMPLAINED VEHEMENTLY IN RECENT YEARS THAT THE BOARD OFTEN TAKES YEARS TO RESOLVE CASES OF WORKERS ALLEGEDLY FIRED FOR UNION ACTIVITIES OR EVEN TO DETERMINE WHICH SIDE WON IN UNIONREPRESENTATION VOTES UNIONS CONTEND THAT COMPANIES DRAG OUT THE NLRB PROCESS SO THEY CAN WEAKEN THE RESOLVE OF WORKERS AND EAT INTO UNIONS' CASH RESERVES BUT MINNESOTA REPUBLICAN DAVE DURENBERGER OF MINNESOTA WHO ALSO WANTS TO SPEED DECISIONMAKING NOTED THAT IN 1977 THEN SEN JACOB JAVITS OF NEW YORK URGED THE SAME THING AND WAS REASSURED BY CHAIRMANDESIGNATE JOHN FANNING THAT THE NO 1 PROBLEM OF THE BOARD IS DELAY PROF GOULD SAID HE WOULD CONSIDER USING THE BOARD'S RARELY EMPLOYED RULEMAKING AUTHORITY TO SET FIRM TIMETABLES FOR DECISIONS TO BE RENDERED THAT AUTHORITY ALREADY IS BEING USED BY THE BOARD TO HANDLE CASES INVOLVING THE HOSPITAL INDUSTRY AND MR GOULD SAID HE WOULD CONSIDER USING IT IN OTHER INDUSTRIES IN OTHER AREAS MR GOULD SAID HE BELIEVES UNION MEMBERS SHOULDN'T BE ABLE TO PULL OUT OF UNIONS WHEN THE UNIONS DECIDE TO STRIKE WE SHOULD LET THE MAJORITY RULE THERE HE TOLD SEN HATCH WHO FAVORS GIVING INDIVIDUAL RIGHTS TO WITHDRAW AT ANY TIME MR GOULD ALSO SAID HE WANTS THE BOARD'S ADMINISTRATIVE LAW JUDGES TO BECOME MORE INVOLVED IN DISPUTE RESOLUTION MORE LIKE ARBITRATORS 9310040103 931004 WORKPLACE JAPAN INC SLAMS ITS ENTRANCE DOORS IN THE FACES OF NEW COLLEGE GRADUATES BY QUENTIN HARDY AND YUMIKO ONO STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO HAJIME SASA 23 YEARS OLD IS A LOSER HE IS LOOKING FOR A JOB IN JAPAN HE EXPECTED A LIFETIME INSIDE A JAPANESE CORPORATION BUT WITH JAPAN'S ECONOMY IN THE DOLDRUMS COMPANIES THAT USED TO SNAP UP GRADUATES FROM HIS SCHOOL PRESTIGIOUS SOPHIA UNIVERSITY HAVE SUDDENLY CHANGED THEIR STYLE HE HAS TALKED TO 15 COMPANIES SO FAR AND ALL HE HAS ARE REJECTIONS TWO YEARS AGO PEOPLE GOT TREATED TO SUSHI JUST BY VISITING THE COMPANY SAYS MR SASA WITH A FROWN MEANWHILE TALES OF HARASSED NONESSENTIAL EMPLOYEES ARE MAKING HIM QUESTION LONGHELD BELIEFS IN THE BENEVOLENT JAPANESE CORPORATION THIS IS JAPAN'S VERSION OF THE GLOBAL EMPLOYMENT CRUNCH WHILE EUROPE AND NORTH AMERICA SUFFER MASSIVE LAYOFFS OF EXISTING WORKERS THIS YEAR'S 600000 JAPANESE GRADUATES QUIETLY FACE THEIR OWN JOB PROBLEMS LIFELONG FAITH THAT HARD STUDY MEANS LIFETIME WORK IS BEING DASHED THESE YOUNG GRADUATES ARE AN EARLY CASUALTY OF THE STRUCTURAL READJUSTMENT OF THE JAPANESE ECONOMY IN A COUNTRY OF GROUP IDENTITY WHERE WORKERS WITH DECADES OF SERVICE STILL COUNT THEMSELVES BY THEIR ENTERING CLASS THE CLASS OF 1994 HAS A LOT OF OUTCASTS AND THE SITUATION WILL LIKELY GET WORSE COMPANIES TALK OF DOWNSIZING THAT WILL LAST YEARS THE GOVERNMENT RECENTLY REPORTED THERE WERE JUST 070 JOBS AVAILABLE FOR EACH JOB APPLICANT IN AUGUST DOWN FROM 072 THE PRIOR MONTH AND THE LOWEST FIGURE IN SIX YEARS JOB OPENINGS AT JAPANESE MANUFACTURERS FELL 26 IN THE SAME PERIOD FROM A YEAR EARLIER THE UNEMPLOYMENT RATE WAS STEADY AT 25 IN AUGUST THE GOVERNMENT SAID BUT THAT NUMBER FAILS TO COUNT GRADUATES LOOKING FOR WORK THE SITUATION FOR RECRUITS IS GETTING MORE SEVERE SAYS KOZO KOIDE SENIOR ECONOMIST AT THE INDUSTRIAL BANK OF JAPAN LTD HE FORESEES TWO APPLICANTS FOR EVERY JOB NEXT YEAR AND THINKS UNEMPLOYMENT WILL EXCEED 3 THE POTENTIAL PRESSURE FOR LABOR ADJUSTMENT IN JAPAN IS THE GREATEST SINCE WORLD WAR II JAPAN'S SEEMINGLY LOFTY PRINCIPLE OF LIFETIME EMPLOYMENT COMPOUNDS THE GRADUATES' PLIGHT A STRONG YEN THAT DISCOURAGES EXPORTS PLUS POOR CONSUMER DEMAND AT HOME IS FORCING JAPANESE COMPANIES TO CUT PAYROLLS BLUECHIP COMPANIES LIKE TOSHIBA CORP HONDA MOTOR CO AND RETAILER TAKASHIMAYA CO HAVE ALL ANNOUNCED MAJOR STAFF REDUCTIONS BECAUSE OF LIFETIME EMPLOYMENT JAPANESE COMPANIES SHRINK BY ATTRITION WHICH MEANS FEWER NEW JOBS AWAITING GRADUATES COMPANIES IN JAPAN WILL NEVER AGAIN HIRE A LOT OF PEOPLE LAMENTS MEGUMU AOYAMA THE JOBPLACEMENT OFFICER AT TOYO UNIVERSITY IN TOKYO HE FLIPS THROUGH THE NUMBERS ON HIS DESK OFFERS FROM RETAILERS ARE DOWN 17 FROM LAST YEAR FROM MANUFACTURERS DOWN 28 FROM REALESTATE COMPANIES DOWN 31 THE CONVENTIONAL WISDOM IS THAT WHEN MANUFACTURING JOBS GO THE SERVICE SECTOR TAKES UP THE SLACK BUT MR AOYAMA HAS SEEN JOB OFFERS FROM THE SERVICE SECTOR FALL 34 THE MOST OF ANY SECTOR SOME SOFTWARE COMPANIES EVEN FIRED LAST YEAR'S NEW HIRES IT'S IMPROPER HE SIGHS BUT IT'S NOT ILLEGAL FOR STUDENTS NOW THERE'S NO LIFETIME EMPLOYMENT FINDING A JOB IN JAPAN IS OFTEN MORE SERIOUS THAN FINDING A MATE ONE APPLICATION MEANS WEEKS OF INTERVIEWS AND TESTING WHILE STUDENT AND COMPANY DECIDE IF THEY ARE COMPATIBLE IN AMERICA YOU CAN JUST GO AND LOOK FOR A JOB SAYS YUKI HIRAYAMA A SENIOR WHO IS PLANNING FURTHER STUDIES IN THE US IN JAPAN'S EMPLOYMENT COURTSHIP SHE SAYS YOU HAVE TO HAVE A COMPANY PICK YOU ONLY THREE YEARS AGO JAPANESE COMPANIES FEARED A LABOR SHORTAGE AND WENT ON A MAD RUSH TO SECURE GRADUATES WINING AND DINING WERE THE NORM INCLUDING OVERNIGHT STAYS IN LUXURIOUS HOTELS COMPANIES KEPT STUDENTS CONFINED TO THE HOTEL ROOMS TO KEEP THEM AWAY FROM COMPETITORS WHEN COMPANIES WERE HIRING STUDENTS EN MASSE I THOUGHT THEY WERE DOING THAT UNDER A LONGTERM PLAN SAYS TAKAAKI SAKATA A PLACEMENT OFFICER AT WASEDA UNIVERSITY ONE OF THE NATION'S TOP SCHOOLS NOW IT SEEMS THAT WASN'T QUITE THE CASE THE INDUSTRIAL BANK'S MR KOIDE THINKS THAT IN A RATIONAL WORLD COMPANIES WOULD FIRE SOME OF THE PEOPLE HIRED THREE YEARS AGO AND HIRE SOME OF THE EXCELLENT RECRUITS THIS YEAR HE THINKS JAPANESE MANUFACTURERS HAVE 860000 EXCESS MIDDLEAGED WORKERS JAPAN'S JOBS PROBLEM SEEMS TO BE HITTING WOMEN HARDER THAN MEN THAT'S A CHANGE FROM A FEW YEARS AGO WHEN YOUNG WOMEN HERE SEEMED TO HAVE THEIR PICK OF CAREERS IN A NEWLY LIBERATING JAPAN SAYAKA KANEDA A 23YEAROLD WASEDA SENIOR MAJORING IN EUROPEAN HISTORY SAYS 20 COMPANIES REJECTED HER THE REASON SHE BELIEVES IS THAT SHE IS A WOMAN WHO DOESN'T LIVE AT HOME THE COMPANIES SAY THEY DON'T HAVE DORMITORIES FOR WOMEN AS THEY DO FOR MEN AND THEY CAN'T PAY HER ENOUGH TO BE ABLE TO AFFORD HER OWN HOUSING IN TOKYO COMPANIES DON'T WANT TO SPEND MONEY ON US THEY DON'T WANT TO TRAIN US SAYS ANOTHER FEMALE GRADUATE 21YEAROLD EMIKO KANAYA AFTER LOOKING FOR WORK FOR MONTHS SHE SAYS I'M ANGRY IF I HAD BEEN BORN A LITTLE EARLIER IT WOULDN'T BE LIKE THIS 9310040102 931004 INTERNATIONAL BRIEF AEROSPATIALE LOSS WIDENED REVENUE SLID IN FRENCH GROUP'S FIRST HALF AEROSPATIALE THE FRENCH STATEOWNED AIRCRAFT AND DEFENSE GROUP SAID ITS LOSS IN THE FIRST HALF WIDENED TO 870 MILLION FRANCS FROM 477 MILLION FRANCS 837 MILLION A YEAR EARLIER THE COMPANY ATTRIBUTED THE RESULTS TO CHARGES RELATED TO LAYOFFS AND A SMALLER EXCEPTIONAL GAIN FROM ASSET SALES REVENUE SLID 12 TO 2298 BILLION FRANCS 403 BILLION COMPARED WITH 262 BILLION FRANCS A YEAR EARLIER CHARGES RELATED TO STAFF REDUCTIONS RESULTED IN PROVISIONS OF 640 MILLION FRANCS WHILE ONETIME GAINS FROM ASSET SALES DURING THE FIRST HALF TOTALED 415 MILLION FRANCS LOSSES FROM CONTINUING ACTIVITIES EXCLUDING EXCEPTIONAL ITEMS NARROWED TO 656 MILLION FRANCS FROM 923 MILLION FRANCS A YEAR EARLIER THE COMPANY ADDED THAT ITS WORKING CAPITAL AND DEBT SITUATION IMPROVED 9310040100 931004 TECHNOLOGY NY REGULATORS TO CUT PREMIUMS OF US HEALTHCARE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STATE INSURANCE REGULATORS SAID THEY PLANNED TO CUT US HEALTHCARE INC'S PREMIUM RATES SENDING THE STOCKS OF THE HEALTH MAINTENANCE ORGANIZATION DOWN SHARPLY CALLING THE DECISION TO CUT ITS AVERAGE PREMIUM RATE BY 39 CAPRICIOUS AND ARBITRARY US HEALTHCARE SAID IT WILL TAKE LEGAL ACTION TO ANNUL THE DEPARTMENT'S PLANNED CUT IT ISN'T APPROPRIATE FOR THE DEPARTMENT TO BASE ITS DECISION ON A REVIEW OF OUR PAST SUCCESS SAID DAVID F SIMON SENIOR VICE PRESIDENT FOR LEGAL AND REGULATORY MATTERS AT US HEALTHCARE IF THEY DO THIS WE'LL HAVE NO INCENTIVE TO CUT COSTS BECAUSE THOSE SAVINGS WILL BE RECOUPED IN A FUTURE RATE CASE NEWS OF THE DECISION WHICH WOULD AFFECT 20 OF US HEALTHCARE'S 15 MILLION MEMBERS AFFECTED THE COMPANY'S STOCK IN NATIONAL OVERTHECOUNTER TRADING FRIDAY THE COMPANY'S SHARES FELL 4 OR 79 TO 4675 IN THE NORMAL COURSE OF NEGOTIATIONS HMOS FACE ISSUES OF POSSIBLE DECREASES WITH LARGE EMPLOYERS AND OTHER GROUPS SAID ELEANOR H KERNS AN ANALYST WITH ALEX BROWN & SONS BUT SOMETHING LIKE THIS HAPPENING WITH PUBLIC REGULATORS IS PRETTY UNUSUAL OXFORD HEALTH PLANS INC DARIEN CONN WHICH ALSO HAS A SIGNIFICANT PRESENCE IN NEW YORK DIPPED 3 OR 37 TO 7875 STILL OXFORD HEALTH EXPRESSED OPTIMISM ABOUT ITS OWN PENDING NEW YORK RATE REQUEST SAYING IT HAD NO REASON TO EXPECT A RATE CUT OTHER HMO STOCKS DROPPED TOO UNITED HEALTHCARE CORP FELL 275 OR 4 TO 65875 FOUNDATION HEALTH CORP DROPPED 1 OR 42 TO 22625 TAKECARE INC DROPPED 1625 OR 37 TO 4225 PACIFICARE HEALTH SYSTEMS INC FELL 1875 OR 5 TO 36 AND FHP INTERNATIONAL CORP DROPPED 1 OR 45 TO 21 THE MOST UNSETTLING ASPECT OF THE SELLOFF ACCORDING TO ANALYSTS WAS THAT INVESTORS NOT ONLY ABANDONED NEW YORKSENSITIVE COMPANIES BUT ALSO HEALTH MAINTENANCE FIRMS THAT DON'T EVEN DO BUSINESS IN THE EASTERN TIME ZONE PEOPLE ARE MORE NERVOUS THIS PARTICULAR RATE SEASON SAID MARGO VIGNOLA AN INDUSTRY ANALYST FOR SALOMON BROTHERS FOR ONE THING THE CLINTON HEALTHCARE REFORM AGENDA HAS CREATED A VEIL OF UNCERTAINTY STILL HMOS PROVIDE BETTER PREMIUMS AND SAVINGS THAN ANYTHING ELSE IN MAKING ITS DECISION NEW YORK STATE REGULATORS SAID US HEALTHCARE'S ROBUST FINANCIAL HEALTH EXCEEDED PREVIOUS PROJECTIONS AND DIDN'T JUSTIFY AN INCREASE US HEALTHCARE HAD REQUESTED AN OVERALL INCREASE OF ABOUT 62 FOR THE YEAR BEGINNING OCT 1 1993 THE SHARPEST CUT CAME AMONG DIRECTPAYING INDIVIDUAL ACCOUNTS WHERE STATE REGULATORS SLASHED PREMIUMS BY 141 THE COMPANY CAN APPEAL THE DECISION TO THE STATE SUPERINTENDENT OF INSURANCE AND IN THE COURTS IF NECESSARY 9310040099 931004 LEISURE & ARTS THE GALLERY THE BRUSH AS LIGHTNING ROD BY ROGER KIMBALL FORT WORTH TEXAS VIEWING SOME OF TIEPOLO'S GREAT FRESCOES IN VENICE THE CRITIC JOHN RUSKIN EXCLAIMED THAT THIS 18THCENTURY VENETIAN MASTER WAS AT THE TOP TOP TOP OF ARTISTIC ACHIEVEMENT GIAMBATTISTA TIEPOLO MASTER OF THE OIL SKETCH HERE AT THE KIMBELL ART MUSEUM THROUGH DEC 12 HELPS TO EXPLAIN WHY ORGANIZED BY BEVERLY LOUISE BROWN CURATOR OF EXHIBITIONS AT THE KIMBELL THE SHOW IS THE FIRST TO BE DEVOTED WHOLLY TO THIS INTIMATELY EXPRESSIVE SIDE OF TIEPOLO'S OEUVRE CONSISTING OF 63 OIL SKETCHES DRAWN FROM EVERY PHASE OF HIS LONG AND BRILLIANT CAREER TIEPOLO LIVED FROM 1696 TO 1770 THE EXHIBITION TAKES US INTO THE WORKSHOP ALMOST INTO THE THOUGHTS OF THIS DAZZLINGLY VIRTUOSIC PAINTER EVERY ASPECT OF THE SHOW IS A TRIUMPH TO BEGIN WITH THE PAINTINGS THEMSELVES ARE A DELIGHT ALL ARE ACCOMPLISHED A HANDFUL ARE GLITTERING SENSUOUS MASTERPIECES TIEPOLO WAS THE LAST IN A LONG LINE OF VENETIAN GENIUSES A LATE REVIVAL OF THE SPIRIT OF VERONESE 15281588 THE PAINTER WHO MOST DECISIVELY INSPIRED AND INFLUENCED HIS WORK THE KIMBELL RECEIVED ALMOST EVERY ITEM IT REQUESTED AND SO THE SHOW CONTAINS MANY OF TIEPOLO'S MOST IMPORTANT OIL SKETCHES AS WELL AS SEVERAL WORKS THAT HAVE NEVER BEEN EXHIBITED BEFORE BUT THAT ARE IMPORTANT FOR UNDERSTANDING THE DEVELOPMENT OF THE PAINTER'S STYLE AND CAREER WHAT'S MORE THE PATIENT SCHOLARSHIP THAT WENT INTO THE CATALOG MAKES IT A GOLD MINE OF INFORMATION ABOUT TIEPOLO'S LIFE AND WORK MUCH OF WHICH WILL BE NEWS TO ALL BUT A FEW SPECIALISTS MS BROWN'S METICULOUS EXPLICATION OF THE SOMETIMES COMPLEX ICONOGRAPHY OF TIEPOLO'S OIL SKETCHES IS ESPECIALLY ORIGINAL AND ILLUMINATING THE SKETCHES IN QUESTION ARE OF SEVERAL SORTS SOME ARE PREPARATORY COMPOSITIONS MORE OR LESS ROUGHHEWN MODELLI MADE TO GUIDE TIEPOLO AND HIS ASSISTANTS IN PAINTING FRESCOES OR ALTARPIECES SOME ARE HIGHLY FINISHED PRESENTATION PIECES INTENDED TO SHOW A CLIENT OR PROSPECTIVE CLIENT WHAT TIEPOLO COULD DO FOR HIM AND SOME ARE VISUAL MEMORANDUMS OR RICORDI THAT TIEPOLO MADE BEFORE PARTING WITH A WORK VALUABLE REPOSITORIES OF IMAGES AND MOTIFS THAT HE COULD RAID IN FUTURE COMMISSIONS THE EASY FREENESS AND GESTURAL QUALITY THAT CHARACTERIZE MOST SKETCHES THEIR VERY SKETCHINESS MADE THEM A MAINSTAY OF ROMANTIC TASTE BUT THIS EXHIBITION REMINDS US THAT THE PASSION FOR SKETCHES WAS WELLESTABLISHED BY THE MID1700S AS THE ROCOCO GAVE WAY TO NEOCLASSICISM SOME COLLECTORS WERE NOT ABOVE HAVING PAINTINGS TOUCHED UP IN ORDER GIVE THEM THAT SOUGHTAFTER UNFINISHED LOOK THUS IT IS THAT TIEPOLO'S FRIEND AND PATRON COUNT ALGAROTTI ONCE ASKED HIM TO GIVE A COPY OF VERONESE'S FEAST IN THE HOUSE OF SIMON A ONCEOVER TO MAKE IT LOOK LIKE THE MODELLO FOR THE ORIGINAL TIEPOLO'S DEPARTURE FROM VENICE FORESTALLED THAT HOAX TIEPOLO'S OWN OIL SKETCHES WERE A FAVORITE AMONG PATRONS WHOSE BUDGETS DID NOT EXTEND TO FRESCOES THIS IS NOT SURPRISING WHAT THEY LACK IN GRANDEUR THEY MAKE UP FOR IN IMMEDIACY AS MS BROWN OBSERVES IN THE CATALOG TIEPOLO'S OIL SKETCHES INVITE A BRIDGE OF INTIMACY BETWEEN THE VIEWER AND THE ARTIST WHERE THE PAINTED IMAGE WORKS LIKE A CALLING CARD FAR FROM BEING MERE EVENTS ON THE WAY TO SOMETHING BIGGER THEN MOST OF TIEPOLO'S OIL SKETCHES ARE FULLY FORMED WORKS OF ART IN THEIR OWN RIGHT TIEPOLO'S USUAL PROCEDURE WAS TO SKETCH AN IDEA IN OIL ONCE THEN MAKE DRAWINGS MOST ARTISTS WOULD STRUGGLE WITH MANY PRELIMINARY DRAWINGS BEFORE MOVING ON TO OIL BUT TIEPOLO WAS A STUNNINGLY FLUENT PAINTER AND UNTIL THE END OF HIS CAREER HIS SKETCHES REVEAL VIRTUALLY NO OVERPAINTING ONCE HE HAD THOUGHT THROUGH A COMPOSITION HIS EXECUTION WAS DEFT AND SURE IT WAS ALSO SWIFT ONE ADMIRER URGING TIEPOLO'S VIRTUES ON A PROSPECTIVE PATRON NOTED HE DOES A PICTURE IN LESS TIME THAN ANOTHER TAKES TO GRIND HIS COLORS SPEED DID NOT MOREOVER FORCE TIEPOLO TO COMPROMISE ON QUALITY OR EXPRESSIVE DETAIL IN HIS HANDS A PAINTBRUSH WAS A KIND OF LIGHTNING ROD COMMUNICATING ALL BUT INSTANTANEOUSLY A WEALTH OF PAINTERLY EXUBERANCE THE RICHNESS OF TIEPOLO'S EYE IS EVIDENT THROUGHOUT THIS EXHIBITION ARRANGED MORE OR LESS CHRONOLOGICALLY IT BEGINS WITH A SMALL ACADEMIC STUDY OF A MALE NUDE DONE WHEN TIEPOLO WAS 19 OR 20 SOME OF THE EARLY SKETCHES BETRAY CERTAIN HESITATIONS AND AWKWARDNESSES BUT BY THE 1720S TIEPOLO HAD HIT HIS STRIDE BY THE 1730S HE WAS PRODUCING ONE EXTRAORDINARY PAINTING AFTER THE NEXT AMONG THE MANY TREASURES IN THIS EXHIBITION THERE ARE THREE THAT STAND OUT IN PARTICULAR THE FIRST IS THE KIMBELL'S OWN APOLLO AND THE CONTINENTS 1739 A LARGE INGRATIATING PRESENTATION PIECE ASSOCIATED WITH THE FRESCO OF THE CHARIOT OF THE SUN IN THE PALAZZO CLERICI IN MILAN A COMPLEX AND INTRICATELY WROUGHT DEPICTION OF THE SUN GOD PRESIDING OVER A VAST PANOPLY OF MYTHOLOGICAL PERSONAGES THE PAINTING IS A TOUR DE FORCE OF PAINTERLY ILLUSIONISM THE SECOND IS THE SUITE OF THREE SKETCHES FOR ONE OF TIEPOLO'S GREATEST MASTERPIECES THE DECORATIONS FOR THE BALLROOM OF THE PALAZZO LABIA IN VENICE 1746 PERHAPS THE LUSHEST OF THE THREE IS THE MEETING OF ANTHONY AND CLEOPATRA WHICH SHOWS A SCARLETCAPED ANTHONY SURROUNDED BY HIS RETINUE BENDING TO KISS THE QUEEN'S HAND THE OTHER TWO ARE EXTRAVAGANT ARCHITECTURAL FANTASIES BASED ON THE LEGENDARY BANQUET OF CLEOPATRA ANTHONY AND CLEOPATRA HAD WAGERED TO SEE WHO COULD STAGE THE MOST EXPENSIVE FEAST BY DISSOLVING HER FAMOUS PEARL EARRINGS IN VINEGAR AND DRINKING THE POTION THE QUEEN QUAFFED AWAY A FORTUNE AND WON HANDS DOWN THE THIRD WORK THAT STANDS OUT IS THE WORLD PAYS HOMAGE TO SPAIN 1762 A LATE PRESENTATION STUDY FOR THE FRESCO IN THE THRONE ROOM OF THE PALACIO REAL IN MADRID RECENTLY CLEANED THE LARGE CANVAS SHIMMERS WITH COLOR AND IS ALIVE WITH A SWIRLING CASCADING PROCESSION OF FIGURES IN AN EARLIER PAINTING THE TRIUMPH OF THE ARTS AND SCIENCES 1731 WE SEE THE FIGURE OF TIME TUMBLING OUT OF THE HEAVENS CONQUERED BY THE ASSEMBLED ARTS AND SCIENCES FOR A MOMENT ANYWAY TIEPOLO'S ARTISTRY MAKES US THINK IT TRUE 9310040098 931004 THERE IS BLOOD ON AN OPINION WE KNOW WHO WROTE IT THE SUPREME COURT JUSTICES AND THEIR CLERKS STAMP PROSE WITH QUIRKY FLAIR BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SUPREME COURT JUSTICES AND THEIR CLERKS SOMETIMES WRITE THE DARNEDEST THINGS IF A SUPREME COURT OPINION IS LADEN WITH ANTIQUATED WORDS IT'S A SAFE BET IT CAME FROM JUSTICE DAVID SOUTER'S CHAMBERS AFTER A LAWYER USED THE OBSOLETE NOUN AUGHT MEANING ANYTHING OR ALL IN AN ORAL ARGUMENT LAST TERM JUSTICE ANTONIN SCALIA OFFERED JUSTICE SOUTER 2 IF HE COULD WORK IT INTO AN OPINION FOR AUGHT WE CAN SEE JUSTICE SOUTER STATED IN A CASE INVOLVING AN AMERICAN CITIZEN'S RIGHT TO SUE A FOREIGN COUNTRY HE COLLECTED HIS MONEY THOUGH PERHAPS HE SHOULD HAVE SHARED THE BOUNTY WITH HIS LAW CLERK IN TRUTH THE CLERK CRANKED OUT THE ROUGH DRAFT OF THE OPINION WITH MR SOUTER EDITING IN HIS PERSONAL FLOURISHES LOUIS BRANDEIS WHO SERVED ON THE HIGH COURT FROM 1916 TO 1939 QUIPPED THAT THE JUSTICES ARE ABOUT THE ONLY PEOPLE IN WASHINGTON WHO DO THEIR OWN WORK IN REALITY MOST COURT MEMBERS THESE DAYS EDIT THEIR LAW CLERKS' WORK CONTENT TO INSERT THEIR OWN LITTLE TOUCHES WHILE ASSURING THAT THE OPINIONS ACCURATELY REFLECT THEIR VIEWS ON THE ISSUES NO MEMBER OF THE COURT WHICH OPENS ITS FALL TERM TODAY USES THE FACTS OF A CRIME MORE GRAPHICALLY TO MAKE HIS POINT THAN CHIEF JUSTICE WILLIAM REHNQUIST IN A 1991 OPINION UPHOLDING A DEATH SENTENCE HE DESCRIBED A FLEEING MURDERER AS SWEATING BLOOD NOTING THAT THE VICTIM'S WOUNDS WERE CAUSED BY 41 SEPARATE THRUSTS OF A BUTCHER KNIFE IF AN OPINION SCOFFS THAT OPPOSING VIEWPOINTS CANNOT POSSIBLY BE TAKEN SERIOUSLY IT'S LIKELY THAT IT CAME FROM JUSTICE SCALIA THE COURT'S KING OF SARCASM SENTIMENTALITY ON THE OTHER HAND IS JUSTICE HARRY BLACKMUN'S SPECIALTY POOR JOSHUA HE EXCLAIMED IN A DISSENT FROM A 1989 RULING THAT WENT AGAINST A CHILDBEATING VICTIM ONLY JUSTICE JOHN PAUL STEVENS AT AGE 73 THE COURT'S SECONDOLDEST MEMBER REGULARLY COMPOSES HIS OWN FIRST DRAFTS OF OPINIONS HIS APPROACH COULDN'T BE CALLED OLDFASHIONED THOUGH A TENNIS FANATIC HE OFTEN WRITES HIS OPINIONS ON A WORD PROCESSOR AT HIS FT LAUDERDALE FLA CONDO AND THEN FAXES THEM TO THE COURT JUSTICE SOUTER JOINED THE COURT IN 1990 ALSO DETERMINED TO DO HIS OWN WRITING HIS HERO OLIVER WENDELL HOLMES DISPATCHED DECISIONS IN A PITHY FEW PAGES BUT JUSTICE SOUTER IMMEDIATELY FELL BEHIND AND NOW ONLY OCCASIONALLY TAKES UP PEN AND YELLOW LEGAL PAD TO COMPOSE AN OPINION FROM SCRATCH IN FAIRNESS THE COURT FACES INCREASINGLY COMPLEX LEGAL ISSUES WHILE JUGGLING AN EVERGROWING BODY OF PRECEDENTS AND STATUTES TO RESEARCH AND HELP WRITE THE OPINIONS MOST JUSTICES EMPLOY FOUR CLERKS FOR ONEYEAR TERMS OWING TO COURT SECRECY THE PUBLIC HEARS LITTLE OF THE CLERKS WHO TYPICALLY ARE RECENT LAWSCHOOL HONORS GRADUATES EAGER TO PROVE THEIR METTLE THESE YOUNG LAWYERS OFTEN PRODUCE PROMETHEAN RECITATIONS OF COURT PRECEDENT BUNDLED TOGETHER WITH RELEVANT PUBLIC DOCUMENTS WORDY EXCERPTS FROM CONGRESSIONAL COMMITTEE REPORTS FOR EXAMPLE SOME CRITICS CONTEND THAT TOO OFTEN THE JUSTICES EDIT TOO LIGHTLY LETTING LENGTHY PASSAGES OF CLERKSPEAK SLIDE INTO THE OFFICIAL LAW BOOKS IT'S NOT JUST THAT IT OFFENDS AESTHETIC SENSIBILITIES SAYS BRYAN GARNER A DALLAS LEGAL LEXICOGRAPHER AND WRITING CONSULTANT THE WORDS OF THE SUPREME COURT HAVE A SIGNIFICANCE UNLIKE ALMOST ANY OTHER WORDS JUSTICE SCALIA WHO ARGUES THAT EXPLORATIONS OF LEGISLATIVE HISTORY ARE USUALLY CONTRADICTORY AND IRRELEVANT TO COURT DECISIONS TRIED TO PROVE HIS POINT BY PRESENTING A HEALTHY DOSE OF THE STUFF IN AN OPINION LAST MARCH ON TAX BREAKS FOR SOLDIERS WITH FRANKNESS RARELY FOUND IN HIGH COURT PRONOUNCEMENTS HE CONCEDED THAT THE MATERIAL HAD ACTUALLY BEEN COBBLED TOGETHER BY THE HAPLESS LAW CLERK TO WHOM I ASSIGNED THE TASK THE PROCESS CAN CREATE THE ILLUSION THAT THE BRAINY CLERKS NOT THE JUSTICES ARE DECIDING CASES PUFFEDUP FORMER LAW CLERKS CONTRIBUTE TO THE FALSE PERCEPTION SOME COURT VETERANS TELL THE STORY OF THE TIME THE LATE JUSTICE THURGOOD MARSHALL MADE ONLY A SINGLE CHANGE IN A CLERK'S DRAFT THE FIRST SENTENCE READ WE TOOK THIS CASE TO CONSIDER JUSTICE MARSHALL CROSSED OUT CONSIDER TELLING HIS CLERK I TAKE CASES TO DECIDE THEM AND HE DID MAKE THE ULTIMATE DECISIONS EVEN IN HIS LAST FRAIL YEARS AMONG CURRENT JUSTICES THERE IS A SPECTRUM OF OPINIONGENERATING TECHNIQUES JUSTICES SCALIA AND SOUTER EDIT AND REWRITE SUBSTANTIALLY JUSTICE STEVENS WHILE WRITING HIS OWN OPINIONS DOES PERMIT HIS CLERKS TO HANDLE FOOTNOTES THIS RESULTS IN SOME OF THE MOST ARCANE MARGINALIA IN LAWYERDOM IN A STEVENS MAJORITY OPINION LAST JUNE UPHOLDING THE TOUGH US POLICY ON HAITIAN REFUGEES FOOTNOTE NO 37 OUT OF 44 OFFERED A 23LINE MEDITATION ON THE VERB RETURN AND ITS FRENCH COUSINS JUSTICES BLACKMUN SANDRA DAY O'CONNOR AND CLARENCE THOMAS MAINLY EDIT JUSTICE THOMAS FOR EXAMPLE GOT THE HEADLINES FOR HIS MOST CONTROVERSIAL OPINION A FIERY FEBRUARY 1992 DISSENT ASSERTING THAT BEATING A PRISONER ISN'T CRUEL AND UNUSUAL PUNISHMENT UNLESS GUARDS INFLICT A SERIOUS INJURY BUT THE PERSON WHO ACTUALLY WROTE MOST OF THE DISSENT WAS CHRISTOPHER LANDAU THEN A 28YEAROLD THOMAS LAW CLERK THIS SORT OF GHOSTWRITING HAS CAUSED CRITICS TO WHISPER ABOUT JUSTICE THOMAS BEING A PUPPET OF CONSERVATIVE CLERKS WHO IN TURN ARE UNDER THE SPELL OF JUSTICE SCALIA BUT WHILE JUSTICE THOMAS HAS SHOWN A STRONG AFFINITY FOR JUSTICE SCALIA'S THINKING HE CALLS HIS OWN SHOTS IN THE PRISONERBEATING CASE JUSTICE SCALIA ACTUALLY THOUGHT THE THOMAS DISSENT WAS TOO EXTREME BUT RELUCTANTLY SIGNED IT ANYWAY TO TRY TO SHIELD HIS THENROOKIE ALLY FROM CRITICISM MR LANDAU DECLINES COMMENT CHIEF JUSTICE REHNQUIST GIVES HIS CLERKS ONLY 10 DAYS TO SUBMIT DRAFTS THEN PARES THEM TO A MINIMUM UNPRETENTIOUS ABOUT HIS AUGUST ROLE THE CHIEF HAS SAID THAT HE DOES SOME OF HIS BEST THINKING WHILE SHAVING IN THE MORNING HE REWRITES BY DICTATION PRODUCING OPINIONS THAT ARE SHORT IF SOMETIMES CRYPTIC THE NEWEST JUSTICE RUTH BADER GINSBURG IS EXPECTED TO FIT SOMEWHERE IN THE MIDDLE OF ALL THIS WHILE SERVING AS A WASHINGTON FEDERAL APPEALS COURT JUDGE SHE SAID OF HER CLERKS I ENCOURAGE THEIR COMMENTS AND ATTEMPTS TO INFLUENCE OR CHANGE MY MIND JUSTICE BLACKMUN BREAKFASTS WITH HIS CLERKS IN THE HIGH COURT'S PUBLIC CAFETERIA BUT WHEN IT COMES TO BUSINESS HE COMMUNICATES ALMOST ENTIRELY ON PAPER LIKE HIS CLERKS' MEMOS WHICH RUN TO 60 SINGLESPACED PAGES WE'RE SHOWING HOW SMART WE ARE ADMITS ONE BLACKMUN ALUMNA BLACKMUN OPINIONS TEND TO SPRAWL A BIT THE COURT'S OLDEST MEMBER 84YEAROLD JUSTICE BLACKMUN IS THE ONLY JUSTICE WHO DOUBLECHECKS BY HAND EVERY CITATION AND QUOTATION IN HIS OPINIONS IN 1990 HIS CLERKS POINTED OUT THAT A NEW COMPUTER PROGRAM COULD DO THE DRUDGE WORK AUTOMATICALLY HE JUST SHOOK HIS HEAD AND WALKED AWAY SAYS A FORMER CLERK WHO WAS THERE 9310040097 931004 MARKETING & MEDIA NBC PURCHASES MAJORITY STAKE IN GLOBAL CHANNEL BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC ACQUIRED A MAJORITY STAKE AND MANAGEMENT CONTROL OF THE LONDONBASED PANEUROPEAN TELEVISION SERVICE SUPER CHANNEL THE PURCHASE GIVES THE GENERAL ELECTRIC CO UNIT A MAJOR GLOBAL OUTLET FOR ITS PROGRAMMING WITH ACCESS TO ABOUT 56 MILLION HOMES IN WESTERN AND EASTERN EUROPE AND THE FORMER SOVIET REPUBLICS THE LARGEST GENERAL PROGRAMMING TV SERVICE IN THE REGION NBC DECLINED TO SAY HOW MUCH IT PAID OR EXACTLY WHAT PERCENTAGE IT WILL HOLD ABOVE 50 BUT AN INDUSTRY EXECUTIVE FAMILIAR WITH THE TRANSACTION PEGGED NBC'S COST AT ABOUT 25 MILLION TOGETHER NBC AND A SUBSIDIARY OF FRENCH BANK CREDIT LYONNAIS A SUPER CHANNEL CREDITOR WILL OWN 75 OF THE COMPANY THE REMAINING 25 WILL BE HELD BY SEVERAL CURRENT INVESTORS THE BROADBASED ENTERTAINMENT CHANNEL DELIVERED BY SATELLITE TO CABLE SYSTEMS AND DIRECT TO HOMES AND HOTELS GIVES NBC THE POTENTIAL TO RIVAL TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK FOR ACCESS TO UPSCALE BUSINESS TRAVELERS WHOM ADVERTISERS LIKE TO REACH SAID TOM ROGERS NBC EXECUTIVE VICE PRESIDENT SUPER CHANNEL REACHES MORE THAN 350000 HOTEL ROOMS IN EUROPE COMPARED WITH CNN'S 275000 SUPER CHANNEL WHICH WILL BE PROGRAMMED BY NBC NEWS PRESIDENT ANDREW LACK WILL ADD MOST NBC NEWS PROGRAMMING TO ITS SCHEDULE INCLUDING LIVE AIRING OF TODAY AND NBC NIGHTLY NEWS AS WELL AS MORE SHOWS FROM CNBC NBC'S BUSINESS CABLE NETWORK IT WILL ALSO CARRY NBC'S TONIGHT SHOW SPORTS AND EUROPEANPRODUCED SHOWS NBC EXECUTIVES SAID IT WILL BE SEVERAL YEARS BEFORE THE ADVERTISINGSUPPORTED SERVICE IS TURNED AROUND FROM ITS CURRENT MONEYLOSING STATUS NBC WILL SERVE AS THE CHANNEL'S US SALES AGENT NBC BOUGHT ITS STAKE FROM ITALY'S GRUPPO MARCUCCI COMMUNICAZIONE WHICH WILL NO LONGER OWN ANY OF THE COMPANY ALTHOUGH A MARCUCCI FAMILY MEMBER WILL HAVE A SEAT ON THE COMPANY'S BOARD 9310040096 931004 BUSINESS BRIEF SUNRISE TECHNOLOGIES INC LASER MANUFACTURER SETTLES SHAREHOLDER SUIT FOR 900000 SUNRISE TECHNOLOGIES INC SAID IT SETTLED A SHAREHOLDERS' CLASSACTION LAWSUIT FOR 900000 THE FREMONT CALIF MAKER OF MEDICAL AND DENTAL LASERS SAID THE SETTLEMENT WILL COST ITS INSURERS 680000 AND THE COMPANY WILL INCUR ABOUT 300000 IN SETTLEMENT COSTS AND LEGAL FEES THE LAWSUIT CHARGED THAT SUNRISE FAILED TO WARN SHAREHOLDERS OF ORDER CUTBACKS THAT CAUSED A SHARP DROP IN THE COMPANY'S STOCK SUNRISE SAID IT ISSUED A PRESS RELEASE AS SOON AS IT LEARNED OF THE CUTBACKS 9310040095 931004 SMALL STOCK FOCUS BIG STOCKS ARE ECLIPSED BY SMALL FRY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS ARE HOT BIG STOCKS ARE NOT THAT'S THE NOTSOSUBTLE MESSAGE INVESTORS ON WALL STREET ARE SENDING WHILE BIG STOCK INDEXES SUCH AS THE STANDARD & POOR'S 500STOCK INDEX RACKED UP A GAIN OF 19 AND THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 11 IN THE THIRD QUARTER THE RUSSELL 2000 INDEX A MEASURE OF SMALLCAPITALIZATION STOCKS SURGED 84 AFTER HITTING HIGHS EVERY DAY LAST WEEK WHY ALL THE FERVOR OVER SMALL STOCKS AT THE EXPENSE OF THEIR BIG BROTHERS INVESTORS ARE BETTING THAT WITH INTEREST RATES SO LOW AND THE ECONOMY HOBBLING ALONG SMALLER MORE NIMBLE COMPANIES WILL BE ABLE TO GROW AT A FASTER RATE THAN BIG UNWIELDY CORPORATE GIANTS THE RATIONALE IS SIMPLE BY DEFINITION SMALLER COMPANIES HAVE BETTER OPPORTUNITIES TO EXPAND THEIR MARKETS AND INCREASE THEIR PROFITS THAN LARGE COMPANIES WHICH IN MANY CASES ARE STRUGGLING TO HANG ONTO WHAT TURF THEY HAVE WHAT'S MORE SMALL COMPANIES ARE OFTEN CREATED TO MEET THE SPECIFIC DEMANDS OF A RAPIDLY GROWING NICHE THUS EVEN IF THE ECONOMY ISN'T BOOMING PROFITS AT SOME OF THESE NICHE FIRMS ARE WE EXPECT SMALL STOCKS TO OUTPERFORM LARGE STOCKS IN THE 1990S SAYS EK EASTON RAGSDALE CHIEF QUANTITATIVE ANALYST AT KIDDER PEABODY AND WHEN THEY OUTPERFORM THEY TEND TO DO IT IN A BIG WAY AMONG THE MIDSIZED AND SMALLER STOCKS HE LIKES ARE DIAMOND SHAMROCK ENERGY VENTURES LIPOSOME TECHNOLOGY S&K FAMOUS BRANDS AND LOUISIANA LAND & EXPLORATION AND IT ISN'T JUST THE AGILITY OF SMALL FIRMS THAT MAKES THEM A BETTER BET LOOKING BACK AT THE PERFORMANCE OF SMALL STOCKS COMPARED WITH LARGE STOCKS OVER THE PAST TWO DECADES MR RAGSDALE FOUND THAT MINOR SHIFTS IN EFFECTIVE TAX RATES PENSION EXPENSE AND POSTRETIREMENT HEALTHCARE COSTS CAN OFTEN GIVE SMALL STOCKS THE EDGE OVER THE BIG GUYS IT'S SURPRISING HOW BIG AN IMPACT PENSION EXPENSE CAN HAVE ON REPORTED EARNINGS SAYS MR RAGSDALE HE NOTES THAT FROM 1984 TO 1988 WHEN LARGE STOCKS LEFT SMALL STOCKS IN THE DUST PENSION COSTS FOR BIG COMPANIES ACTUALLY DECLINED 644 THANKS IN PART TO SIZZLING RETURNS ON BONDS STOCKS AND REAL ESTATE THAT GENERALLY ARE PART OF A PENSION PORTFOLIO BUT IN COMING YEARS MANY ANALYSTS EXPECT DOUBLEDIGIT RETURNS ON STOCKS BONDS AND REAL ESTATE WILL BE HARD TO COME BY AND SO LARGE COMPANIES WITH BIGGER WORK FORCES AND A GREATER NUMBER OF RETIREES WILL BE AT A DISADVANTAGE A NEW COMPANY THAT IS JUST GETTING STARTED MAY NOT HAVE ANY RETIREES SAYS MR RAGSDALE BUT FOR BIG COMPANIES LIKE GENERAL MOTORS LTV AND CHRYSLER PENSION COSTS ARE STAGGERING ALL THREE HAVE UNDERFUNDED PENSIONS PLANS AND MAY BE FORCED TO SPEED UP CONTRIBUTIONS TO THEIR PLANS IF A RECENTLY UNVEILED CLINTON ADMINISTRATION PROPOSAL PASSES CONGRESS HEALTHCARE BENEFITS FOR RETIRED WORKERS ARE ALSO GOING TO HIT BIG COMPANIES HARDER MR RAGSDALE SAYS MANY INVESTORS THINK THAT FASB 106 WHICH REQUIRES COMPANIES TO RECOGNIZE THE COSTS OF RETIREES' HEALTH BENEFITS REPRESENTED A ONETIME BLOW TO CORPORATE EARNINGS BUT WHAT THE NEW ACCOUNTING STANDARD WILL MEAN IS THAT COMPANIES ARE GOING TO HAVE TO BOOK HIGHER EXPENSES FOR RETIREE HEALTHCARE COSTS IN THE FUTURE THAN THEY DID IN THE PAST FASB 106 IS GOING TO RESULT IN BIGGER COSTS THAN THE PAYASYOUGO EXPENSES COMPANIES PREVIOUSLY HAD SAYS MR RAGSDALE WHILE SMALL COMPANIES WON'T BE HURT AS BADLY BY PENSION EXPENSE AND HEALTHCARE COSTS FOR RETIREES THEY ALSO WILL BENEFIT FROM SHIFTS IN THE EFFECTIVE TAX RATE MR RAGSDALE SAYS THAT FROM 1984 TO 1990 TAX RATES FOR LARGE COMPANIES DECLINED AVERAGING ONLY 386 DURING THAT PERIOD SMALL STOCKS DRAMATICALLY LAGGED BEHIND BIG STOCKS BUT IN 1988 THE EFFECTIVE TAX RATE FOR THE LARGEST COMPANIES BOTTOMED OUT AND STARTED CLIMBING PAVING THE WAY FOR SMALL STOCKS TO BETTER THEIR BIGGER BRETHREN SOME ANALYSTS THINK THE INTEREST IN SMALL STOCKS IS JUST A REFLECTION OF CHANGING SUPPLY AND DEMAND FORCES SINCE GROWTH AS A COMMODITY IS SCARCE AND THERE AREN'T MANY LARGE CAPITALIZATION COMPANIES THAT ARE GROWTH STOCKS ANYMORE INVESTORS ARE LIKELY TO BID UP SMALLER COMPANIES THAT OFFER GROWTH SAYS CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH MR CLOUGH SAYS TODAY'S ENVIRONMENT IS VERY DIFFERENT FROM THE MID1980S WHEN SMALL STOCKS PERFORMED BADLY STARTING IN THE SUMMER OF 1983 WHEN SMALL STOCKS BEGAN TO LAG THERE WAS A TREMENDOUS EXPLOSION OF TECHNOLOGY COMPANIES PERSONAL COMPUTERS WERE COMING ON THE SCENE AND THERE WAS SOMETHING LIKE 57 DISK DRIVE COMPANIES THAT WENT PUBLIC IN THE SUMMER AND AUTUMN OF 1983 SAYS MR CLOUGH TODAY HE ADDS THERE ARE ONLY THREE LEFT MR CLOUGH POINTS OUT THAT THE OVERCAPACITY IN AREAS LIKE TECHNOLOGY WHICH ACCOUNTS FOR MUCH OF THE SMALL STOCK UNIVERSE LED TO PROFIT PROBLEMS THAT TOOK SEVEN YEARS TO UNWIND THOUGH SMALL STOCKS HAVE BEEN CLIMBING SINCE 1990 THE RALLY HASN'T LED TO OVERCAPACITY AND WHILE MANY COMPANIES ARE SELLING STOCK MR CLOUGH NOTES THAT MOST OF THEM ARE DOING SO IN AN EFFORT TO REDUCE THEIR DEBT LOADS I DON'T THINK WE HAVE FINISHED THIS SMALLSTOCK GROWTH FRENZY HE SAYS SURE SOME STOCKS ARE PRICEY BUT THERE ARE STILL ATTRACTIVE OPPORTUNITIES AMONG STOCKS OF NURSING HOME CHAINS SUCH AS HEALTH CARE & RETIREMENT AND CELLULAR ISSUES SUCH AS CENTENNIAL CELLULAR HE SAYS ALTHOUGH SOME ANALYSTS WORRY THAT PASSAGE OF THE PRESIDENT'S HEALTHCARE PLAN COULD SADDLE SMALL COMPANIES WITH HEAVY EXTRA COSTS THAT WILL EAT INTO PROFITS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SUGGESTS THAT SUCH FEARS ARE EXAGGERATED OF COURSE TINY COMPANIES WITH LESS THAN 1 MILLION IN REVENUE WOULD ALMOST CERTAINLY BE HURT BY A GENEROUS HEALTHCARE PACKAGE THAT OWNERS WOULD BE REQUIRED TO PARTIALLY FUND BUT MOST SMALL STOCKS AREN'T THAT MINUSCULE AND MANY OF THE LARGER ONES ESPECIALLY SOME OF THE TECHNOLOGY COMPANIES OUT WEST ALREADY LAVISH THEIR WORKERS WITH SUBSTANTIAL HEALTH BENEFITS IN THE SMALLSTOCK SECTOR YOU HAVE A LOT OF RAPIDGROWERS SO IF YOU ADD 8 TO 9 TO THEIR COST STRUCTURE IT'S NOT GOING TO BE THAT DAMAGING MR CANELO SAYS SMALL STOCK PRICES EDGED HIGHER THE RUSSELL 2000 INDEX A BAROMETER OF SMALLCAPITALIZATION ISSUES TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES CLIMBED TO ITS SIXTH STRAIGHT HIGH MINUTES BEFORE THE CLOSE THE INDEX GAINED JUST 005 POINT OR 002 TO END AT 25300 FOR THE WEEK THE RUSSELL 2000 INDEX ROSE 426 POINTS OR 171 AFTER HITTING A RECORD EVERY DAY OF THE WEEK IN THE SMALLCAP TECHNOLOGY SECTOR XYPLEX PLUMMETED 10 OR 348 TO 18 3/4 ON A WEAK THIRDQUARTER OUTLOOK AND A GROSS PROFIT MARGIN ESTIMATE THAT FALLS BELOW ANALYSTS' FORECASTS THE COMPANY EXPECTS TO EARN 30 CENTS TO 32 CENTS A SHARE FOR THE QUARTER COMPARED WITH 32 CENTS A YEAR EARLIER RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THAT SIX XYPLEX EXECUTIVES INCLUDING ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PETER NESBEDA SOLD A COMBINED 47000 SHARES IN THE COMPANY FROM JULY 23 THROUGH AUG 26 AT 2025 TO 2975 THE SALES WERE CONDUCTED IN THE OPEN MARKET AND WEREN'T RELATED TO THE EXERCISE OF OPTIONS THE SEC DATA SHOW HEALTH MAINTENANCE ORGANIZATIONS WERE CLOBBERED ON A FOURPOINT PLUNGE IN US HEALTHCARE'S SHARE PRICE WHICH FINISHED AT 46 3/4 THE COMPANY SAID IT WILL FILE AN ACTION TO ANNUL THE DECISION OF THE NEW YORK STATE INSURANCE DEPARTMENT THAT WOULD DECREASE ITS NEW YORK HREMIUM RATES AN AVERAGE 39 FOR THE 12 MONTHS BEGINNING LAST FRIDAY IN SYMPATHY AND ALSO BECAUSE OF SOME PROFITTAKING AFTER A STRONG RUNUP IN THE GROUP OXFORD HEALTH PLANS DROPPED 3 TO 78 3/4 THE PRICE HAD DROPPED AS MUCH AS 7 POINTS BEFORE ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEVE WIGGINS SAID THE COMPANY DOESN'T ANTICIPATE ANY TROUBLE GETTING ITS 46 NEW YORK STATE RATE INCREASE APPROVED ALSO LOWER WERE TAKECARE INC BASED IN CONCORD CALIF WHICH LOST 1 5/8 TO 42 1/4 AND ROCKVILLE MDBASED MID ATLANTIC MEDICAL SERVICES WHICH FELL 1 TO 26 BUT OTHER MEDICALRELATED ISSUES PERFORMED WELL COLLAGEN IN PALO ALTO CALIF WAS UP 1 AT 28 1/2 THE COMPANY SAID IT RECEIVED CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET CONTIGEN BARD COLLAGEN IMPLANT A PURIFIED FORM OF BOVINE DERMAL COLLAGEN FOR THE TREATMENT OF ADULT STRESS INCONTINENCE OTHERS IN THE SECTOR ALSO MOVED HIGHER ALTEON JUMPED 1 3/4 TO 10 1/2 HEART TECHNOLOGY GAINED 1 1/4 TO 20 1/4 AND CALGENE ADDED 1/8 TO 14 CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9310040093 931004 EUROPE BOOSTS PHILADELPHIA'S CURRENCY OPTIONS MARKET BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL AS EUROPEAN CORPORATIONS ADAPT TO THE MOST UNSTABLE CURRENCY MARKETS IN MEMORY THE PHILADELPHIA STOCK EXCHANGE IS EMERGING AS THE UNLIKELY BENEFICIARY OF THEIR SCRAMBLE TO CONTROL CURRENCY RISK AMID THE TURMOIL OF THE EUROPEAN RATE MECHANISM CURRENCIES SUCH AS THE FRENCH FRANC AND GERMAN MARK HAVE FALLEN OUT OF THEIR HISTORICALLY CLOSE ALIGNMENT FOR COMPANIES BASED IN EUROPE WHICH EXPORT PRODUCTS TO A VARIETY OF COUNTRIES THE HUGE WIDENING OF THE ERM'S TRADING BAND POSES THE RISK OF BIG LOSSES FROM UNFAVORABLE SWINGS IN EXCHANGE RATES ON THIS SIDE OF THE ATLANTIC IT MEANS A SURGE IN BUSINESS AT THE PHILADELPHIA EXCHANGE WHERE A ONCETINY CURRENCY OPTIONS MARKET IS NOW BECOMING THE MARKET OF CHOICE FOR MUCH OF EUROPE'S RISKMANAGEMENT OR HEDGING BUSINESS MY BOSS IS A FERVENT BELIEVER IN HEDGING SAYS THIERRY ROYER ASSISTANT TREASURER OF USINOR SACILOR A HUGE STATEOWNED FRENCH STEEL COMPANY HE WANTS ME TO CHOOSE THE BEST AVAILABLE MARKET FROM OUR POINT OF VIEW THE PHILADELPHIA EXCHANGE IS THE MOST EFFICIENT MARKET THE VOLUME OF TRADING IN THE PHILADELPHIA EXCHANGE'S CURRENCY OPTIONS CONTRACTS HAS LEAPT 23 THIS YEAR TO 91 MILLION CONTRACTS IN THE FIRST EIGHT MONTHS OF 1993 FROM 74 MILLION CONTRACTS DURING THE SAME PERIOD A YEAR AGO THESE GAINS HAVE FAR OUTPACED THE GROWTH OF OPTIONSTRADING ACTIVITY AT THE CHICAGO MERCANTILE EXCHANGE THE TRADITIONAL LEADER IN EXCHANGEBASED CURRENCY DERIVATIVES MULTINATIONAL CORPORATIONS TYPICALLY USE OPTIONS CONTRACTS AND OTHER SOCALLED DERIVATIVE PRODUCTS TO LOCK IN AN EXCHANGE RATE FOR SAY FRANCS VERSUS MARKS FOR MONTHS OR YEARS TO COME THE CHICAGO EXCHANGE WAS THE FIRST TO OFFER FUTURES AND OPTIONS CONTRACTS BASED ON CURRENCY EXCHANGE RATES IT STILL DOMINATES TRADING IN CURRENCY FUTURES CONTRACTS WHICH THE PHILADELPHIA MARKET DOESN'T OFFER HOWEVER THE VOLUME OF TRADING IN PHILADELPHIA'S CURRENCY OPTIONS HAS OVERTAKEN CURRENCY OPTIONS VOLUME AT THE CHICAGO EXCHANGE IN LARGE PART BECAUSE OF THE FLOOD OF EUROPEAN BUSINESS TO THE PHILADELPHIA EXCHANGE THE CME CONTRACTS REPRESENT TWICE AS MUCH UNDERLYING FOREIGN CURRENCY AS THE PHILADELPHIA CONTRACTS FROM THE EUROPEAN POINT OF VIEW CHICAGO IS A MARKET FOR TRADERS FOR INSTITUTIONS AND PROFESSIONALS SAYS MARC FIORENTINO CHAIRMAN OF PAINEWEBBER FRANCE WHICH SELLS OPTIONS TO EUROPEAN COMPANIES PHILLY IS A MARKET FOR HEDGERS FOR THE CORPORATE USERS OF OPTIONS CONTRACTS THE CHICAGO MARKET HAS DEFINITELY MISSED A BIG CHUNK OF THIS END USER BUSINESS ONE REASON FOR THIS MR FIORENTINO SAYS IS THAT EUROPEAN COMPANIES TEND TO BE MORE COMFORTABLE WITH OPTIONS WHICH MERELY ENTITLE THEIR HOLDERS TO EXCHANGE CURRENCY AT A PRESPECIFIED RATE THAN THEY ARE WITH FUTURES WHICH ARE OBLIGATIONS TO CHANGE MONEY AT PRESPECIFIED RATES AND PHILADELPHIA OPTIONS ARE SETTLED IN CASH CHICAGO OPTIONS WHEN THEY EXPIRE ARE CONVERTED INTO FUTURES CONTRACTS YOU WILL NEVER SEE A EUROPEAN CORPORATION GOING TO THE CHICAGO MARKET TO BUY AN OPTION ON A FUTURE SAYS HUGO FERREIRA DEPUTY GENERAL DIRECTOR OF LA COMPAGNIE DE TRESORERIE BENJAMIN DE ROTHSCHILD A SWISS FIRM THAT ADVISES COMPANIES ON HOW TO HEDGE CURRENCY RISKS THAT'S MUCH TOO DIFFICULT FOR A CORPORATION TO UNDERSTAND THEY REALLY LIKE THE CASHSETTLED PRODUCTS THE BIGGEST GAINS AT THE PHILADELPHIA MARKET THIS YEAR HAVE BEEN IN THE EXCHANGE'S FRENCH FRANC OPTIONS CONTRACTS AS HEDGING ACTIVITY BY FRENCH CORPORATIONS SURGED THE CME MEANWHILE ONLY RECENTLY LAUNCHED FRENCH FRANC FUTURES AND OPTIONS CONTRACTS THE CHICAGO CONTRACTS ARE TRADING AT A PACE OF A FEW HUNDRED CONTRACTS PER DAY COMPARED WITH ABOUT 14000 CONTRACTS A DAY IN PHILADELPHIA SYMPOSIUM MOVED IN A TIP OF ITS HAT TO ITS GROWING EUROPEAN CLIENTELE THE PHILADELPHIA EXCHANGE MOVED ITS ANNUAL SEPTEMBER CURRENCY OPTIONS SYMPOSIUM HELD LAST WEEK FROM PHILADELPHIA TO PARIS THIS YEAR PARIS IS BECOMING A CONCENTRATION OF DERIVATIVEPRODUCT ACTIVITY SAYS JOSEPH RIZZELLO SENIOR VICE PRESIDENT OF THE PHILADELPHIA EXCHANGE THE FRENCH REALLY TUNE IN TO DERIVATIVES PARTICULARLY OPTIONS AND BECAUSE SO MUCH OF OUR BUSINESS COMES OUT OF EUROPE WE DECIDED TO MOVE THE SYMPOSIUM OVER THERE THE CME ALSO HAS BEEN TAKING STEPS TO BEEF UP ITS CURRENCY MARKET LATELY MOST OF THEM AIMED AT THE BIG BANKS AND WALL STREET FIRMS THAT DOMINATE THE HUGE OFFEXCHANGE OR INTERBANK MARKET IN CURRENCIES RECENTLY THE CHICAGO EXCHANGE LAUNCHED A NEW KIND OF FUTURES CONTRACT BASED ON THIS INTERBANK TRADING WHICH IT CALLS ROLLING SPOT CONTRACTS SO FAR TRADING VOLUME IN ROLLING SPOT CONTRACTS HAS BEEN WEAK JOHN F SANDNER THE EBULLIENT CHAIRMAN OF THE MERC HAS TAKEN TO GIVING INSPIRATIONAL SPEECHES TO CME TRADERS TO STIR UP INTEREST IN TRADING THE CONTRACTS THE EXCHANGE IS NOW TRADING A FEW HUNDRED OF THESE CONTRACTS A DAY BEFORE MR SANDNER'S SPEECHES IT TRADED NEXT TO NONE MR SANDNER NOTES THAT THE VOLUME OF TRADING IN HIS EXCHANGE'S CONVENTIONAL CURRENCY FUTURES HAS RESURGED THIS YEAR AFTER A DOWN YEAR IN 1992 HE ADDS THAT DESPITE THE PHILADELPHIA MARKET'S RECENT OPTIONSTRADING GAINS HIS EXCHANGE HASN'T CONCEDED EUROPEAN CORPORATE BUSINESS TO ITS EAST COAST COMPETITOR ONE MIGHT ARGUE THAT WE'RE MORE APPEALING TO THE LARGE INSTITUTIONAL ORGANIZATION RATHER THAN THE SMALLER CORPORATE CLIENT MR SANDNER SAYS BUT WE ARE TRYING TO APPEAL TO EVERY KIND OF USER 9310040092 931001 NEWEST TESTAMENT JAPAN IS THE LAND OF THE RISING SON SHINGO VILLAGE CLAIMS GRAVES OF CHRIST AND HIS BROTHER BALD MESSIAH DIED AT 106 BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL SHINGO JAPAN AMONG THE MISTY HILLS OF RURAL JAPAN A WHITE BILLBOARD SHOWS A GOLD CROSS AGAINST A LONE HILLTOP SHINGO VILLAGE THE SIGN READS IN JAPANESE HOMETOWN OF CHRIST HERE LIES AN ALTERNATIVE ENDING TO THE GREATEST STORY EVER TOLD JESUS CHRIST LIVED IN THIS FARMING VILLAGE AND LIES BURIED HERE BESIDE HIS BROTHER AND SHINGO HAS THE GRAVES TO PROVE IT IT IS QUITE A CLAIM PARTICULARLY FOR A TOURISMCHALLENGED VILLAGE OF 4008 APART FROM THE GRAVES SHINGO BOASTS A GOCART TRACK A BOULDER KNOWN AS THE HUGE STONE TWO GAS STATIONS A SMALL HOTEL AND NO CHURCHES BUT THE GRAVES OF CHRIST AND HIS BROTHER WEREN'T COOKED UP BY THE LOCAL BOOSTER CLUB IN FACT THE BURIAL SITE IS RELATIVELY UNHERALDED AND IT GOES BACK AT LEAST SIX DECADES OR TWO MILLENNIUMS IF SHINGOITES ARE RIGHT IT IS BELIEVED THAT CHRIST CAME TO JAPAN AT THE AGE OF TWENTYONE WHERE HE STUDIED THEOLOGY READS A SIGN IN ENGLISH BESIDE THE GRAVES WHICH CONSIST OF TWO MOUNDS WITH LARGE WOODEN CROSSES ON TOP AFTER A SOJOURN IN THE MIDEAST THE SIGN EXPLAINS THAT JESUS RETURNED TO JAPAN WHERE HE DIED AT THE AGE OF 106 THESE AND OTHER CLAIMS DERIVE FROM AN OBSCURE TESTAMENT THAT CHRIST ALLEGEDLY LEFT IN JAPAN DISCOVERED AT AN ANCIENT TEMPLE IN THE 1930S THE SCROLL WRITTEN IN OLD JAPANESE TELLS THE EXTRAORDINARY TALE CHRIST'S ESCAPE FROM THE CROSS AND QUIET LIFE WITH A JAPANESE BRIDE BE CAREFUL WITH THIS NORIHIDE NAGANO SAYS TAKING A YELLOWED TAPEDUP COPY OF THE SCROLL SOME 20 FEET LONG FROM A CARDBOARD TUBE AT SHINGO'S TOURISM OFFICE ANOTHER COPY IS ON DISPLAY AT A SMALL SHED BY THE MESSIAH'S GRAVE OUTSIDE TOWN ACCORDING TO THE TESTAMENT JESUS STUDIED FOR 11 YEARS WITH JAPAN'S RELIGIOUS MASTERS THEN RETURNED TO JUDEA VIA MONACO WHEN THE ROMANS MISTAKENLY CRUCIFIED HIS BROTHER JESUS AND HIS FOLLOWERS ESCAPED WITH HIS SIBLING'S REMAINS TO SIBERIA ALASKA AND FINALLY JAPAN JESUS SETTLED IN SHINGO MARRIED A WOMAN NAMED MIYUKO AND CHANGED HIS NAME TO TARO DAITENGU WHICH ROUGHLY TRANSLATES AS THE NUMBER ONE SPIRIT HE ALSO FATHERED THREE DAUGHTERS AND DEVELOPED PATTERN BALDNESS BEFORE DYING OF NATURAL CAUSES THE TESTAMENT SAYS THE GRAVE OF JESUS WAS FOUND IN 1935 BUT WE DIDN'T ADVERTISE IT UNTIL 1962 OR 1963 SAYS MR NAGANO THE TOURISM OFFICIAL WHO ALSO EXPOUNDS ON THE SIMILARITIES BETWEEN SHINGO AND ANCIENT PALESTINE TAKE FASHION FOR INSTANCE UNTIL RECENTLY SHINGO'S FARMERS WORE MODEST CLOAKS AND ROBES THAT RESEMBLE THOSE WORN BY THE PEASANTS OF ROMANERA JUDEA SHINGO'S TRADITIONAL GARB ALSO IS ON DISPLAY BY THE GRAVE OF CHRIST AND HIS BROTHER WHILE MOST RESIDENTS OF SHINGO APPEAR TO BELIEVE THAT CHRIST IS BURIED IN THEIR TOWN THEY DON'T SEEM PARTICULARLY INTERESTED IN CAPITALIZING ON IT SHINGO SPENDS JUST 45 MILLION YEN 43100 A YEAR ON PROMOTION AND CHARGES NO ADMISSION TO THE SITE WHICH ATTRACTS TENS OF THOUSANDS OF VISITORS EACH YEAR THE TOWN'S THREE GIFT SHOPS OFFER ONLY TWO LOCAL PRODUCTS RICE WINE OR SAKE LABELED HOMETOWN OF CHRIST AND A SWEET PASTE CALLED NA NYA DO YA RA THE PASTE'S NAME IS PART OF THE ODD LORE THAT SURROUNDS CHRIST'S GRAVE EARLIER IN THIS CENTURY AT VILLAGE FESTIVALS THE PEOPLE OF SHINGO USED TO DANCE ALL NIGHT THROWING BACK THEIR HEADS AND SINGING NA NYA DO YA RA NA NYA DO NA SA RE WHILE VILLAGERS SAY THEY DON'T KNOW THE MEANING OF THE PHRASE THE TOURISM OFFICIAL MR NAGANO SAYS RESEARCHERS HAVE MADE SOME INTRIGUING FINDS ONE SCHOLAR HAS INTERPRETED IT TO MEAN WE WORSHIP CHRIST WHO DISPELLED THE BARBARIANS' HE SAYS VILLAGERS ARE STRUCK BY OTHER SIGNS OF THE MESSIAH'S PRESENCE IT'S GOOD THAT HE LIVED HERE DECLARES 83YEAROLD YOSHIE NAGAMINE SITTING AMID WILDFLOWERS AND CRATES OF COLA IN A FARMHOUSE NEAR THE GRAVE SITE THERE ARE NO TYPHOONS AND GOOD VEGETABLES THEN THERE IS THE MATTER OF SHINGO'S CROSSES IN A COUNTRY WITH VERY FEW CHRISTIANS EVERY SHINGO NEWBORN USED TO HAVE A CROSS DRAWN ON ITS FOREHEAD FOR GOOD LUCK IT PREVENTS DISASTERS EXPLAINS MRS NAGAMINE THREE OF WHOSE CHILDREN BORE THE CROSS ADDS HER COMPANION AN 88YEAROLD WOMAN NAMED MATSUE CHIBA FOR A LONG TIME BEFORE WE KNEW THE MOUNDS WERE CHRIST'S PEOPLE SAID THEY MUST BE SOMEBODY IMPORTANT LIKE A SAMURAI WE DIDN'T DARE GO UP THAT MOUNTAIN SOME VISITORS TO SHINGO AREN'T SO CREDULOUS GAZING AT THE GRAVES THROUGH WRAPAROUND SUNGLASSES 35YEAROLD YUKI SHIRAKAWA SNEERS AT THE BUDDHISTTYPE OFFERINGS POCKET CHANGE AND GUM LEFT BY OTHER TOURISTS TO PROPITIATE THE SPIRIT IT'S A LITTLE TOUGH TO BELIEVE CHRIST LIVED HERE HE SAYS AS HIS BORED GIRLFRIEND TUGS AT HIS SLEEVE CURIOUSLY THOUGH MR SHIRAKAWA IS ON HIS FIFTH VISIT TO THE SITE IN FACT WHILE MANY JAPANESE CLAIM THEIR NATION IS AGNOSTIC THEY SHOW SIGNS OF BEING OBSESSED WITH RELIGION PUBLIC SURVEYS REVEAL A POPULATION THAT IS 75 BUDDHIST AND 95 SHINTO A 170 TOTAL THAT SUGGESTS A CERTAIN BETHEDGING ON SPIRITUAL MATTERS THE JAPANESE ARCHIPELAGO BOASTS MORE THAN 80000 MAJOR SHRINES AND INNUMERABLE SMALLER ONES NEW AGE RELIGIONS ABOUND SOME OF WHICH REVERE JESUS AS A JAPANESE GOD THANKS TO THE SHINGO GRAVE YOUNG JAPANESE ALSO TAKE UP THE TRAPPINGS IF NOT THE CREED ITSELF WITH HIGHLY POPULAR CHRISTIAN CHURCH WEDDINGS A TOKYO SUBWAY ADVERTISEMENT FROM THE YMCA EVEN PITCHES A HOLY WEDDING SPECIAL PERHAPS THIS FASCINATION HELPS EXPLAIN A CERTAIN WILLINGNESS TO OVERLOOK HOLES IN THE SHINGO STORY THERE IS FOR INSTANCE THE ABSENCE OF THE ACTUAL TESTAMENT ON WHICH THE STORY IS BASED HARUMI YAMANE'S MOTHER A SOCIAL WORKER AND SELFTAUGHT ARCHAEOLOGIST WAS ONE OF THE RESEARCHERS WHO ALLEGEDLY DISCOVERED THE TESTAMENT AT A TEMPLE A FEW HUNDRED MILES SOUTH OF SHINGO THE YOUNGER YAMANE HIMSELF A RETIRED LECTURER ON JESUS' JAPANESE CONNECTION SAYS THE ORIGINAL TESTAMENT WAS PROBABLY DESTROYED DURING WORLD WAR II FLIPPING THROUGH 60YEAROLD PHOTOGRAPHS OF THE ORIGINAL FIND WHICH ALSO INCLUDED THE TEN COMMANDMENTS AND EVIDENCE THAT GENGHIS KHAN WAS JAPANESE MR YAMANE SAYS SOME OF THE DOCUMENTS WERE TAKEN TO TOKYO BY THE POLICE AND WERE LOST WHEN THE CITY WAS BOMBED ALAN BOOTH A RECENTLY DECEASED BRITISH EXPERT ON JAPAN HAD ANOTHER EXPLANATION FOR THE GRAVES IN SHINGO JAPAN AFTER INITIALLY ACCEPTING CHRISTIAN MISSIONARIES IN THE 16TH CENTURY BEGAN PERSECUTING THEM BOOTH BELIEVED THAT THE GRAVE IN SHINGO WAS REALLY THE RESTING PLACE OF ONE OF THESE MISSIONARIES WHO DIED WHILE ON THE RUN FROM IMPERIAL AUTHORITIES TIMES ARE BETTER FOR CHRISTIANS IN JAPAN NOW EMPRESS MICHIKO WAS EDUCATED IN A PRESTIGIOUS CATHOLIC SCHOOL SO WAS PRIME MINISTER MORIHIKO HOSOKAWA ONE OF WHOSE 16THCENTURY ANCESTORS WAS A PROMINENT CHRISTIAN CONVERT ALSO CURIOSITY ABOUT MEMORIALS SUCH AS SHINGO'S IS GROWING MR YAMANE THE RETIRED LECTURER ON JESUS SAYS HE RECENTLY GOT A CALL FROM HAKUI A TOWN IN SOUTHERN JAPAN A CHAMBER OF COMMERCE ASKED ME TO MAKE A SPEECH ON MOSES HE SAYS HIS GRAVE IS DOWN THERE 9310040091 931004 EPA SAYS CHEVRON BROKE CLEAN AIR LAW BY STARTING PROJECT WITHOUT PERMISSION BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FEDERAL ENVIRONMENTAL OFFICIALS ACCUSED CHEVRON CORP OF VIOLATING CLEAN AIR LAWS BY STARTING WORK ON A 700 MILLION REFINERY PROJECT BEFORE OBTAINING A FORMAL CONSTRUCTION PERMIT THE UNUSUAL CLASH INCLUDING ASSERTIONS BY ENVIRONMENTAL PROTECTION AGENCY OFFICIALS THAT CHEVRON'S STRATEGY WAS AIMED AT GAINING AN UNFAIR ADVANTAGE OVER ITS COMPETITORS COULD DAMAGE CHEVRON'S CAREFULLY NURTURED IMAGE AS ONE OF THE MOST ENVIRONMENTALLY SENSITIVE MAJOR OIL FIRMS THE PUBLIC DISPUTE OVER UPGRADING CHEVRON'S EL SEGUNDO REFINERY TO PRODUCE CLEANERBURNING REFORMULATED GASOLINE ERUPTED JUST A DAY AFTER THE EPA PROPOSED A RECORD 17 MILLION FINE AGAINST ANOTHER CHEVRON UNIT FOR ALLEGEDLY VIOLATIONS OF THE TOXIC SUBSTANCES CONTROL ACT IN THE CASE OF THE CALIFORNIA REFINERY CHEVRON CLAIMS THAT IT HAS WORKED CLOSELY WITH STATE ENVIRONMENTAL REGULATORY OFFICIALS FOR MORE THAN A YEAR RECEIVED A GREEN LIGHT FROM THEM TO BEGIN THE WORK AND THAT IT IS WITHIN WEEKS OF OBTAINING A FINAL CONSTRUCTION PERMIT THE ISSUE DEFIES LOGIC FROM OUR PERSPECTIVE SAID CHEVRON SPOKESMAN ROD SPACKMAN HE SAID THE COMPANY WAS SHOCKED BY THE EPA'S DECISION AND FEELS IT IS A VICTIM OF A TECHNICAL DISAGREEMENT BETWEEN STATE AND US REGULATORS CHEVRON TOOK THE UNUSUAL STEP OF SCHEDULING A NEWS CONFERENCE TO CRITICIZE THE EPA CLAIMING THAT THE AGENCY'S ORDER MAKES NO SENSE BILL GLENN A SPOKESMAN FOR THE EPA'S REGIONAL OFFICE IN SAN FRANCISCO SAID THE AGENCY ISSUED A NOTICE OF VIOLATION AFTER RECEIVING A TIP AND DETERMINING THAT CHEVRON HAD BEEN WORKING ON THE REFINERY PROJECT WITHOUT A PERMIT FOR SEVERAL MONTHS THE CLEAN AIR ACT IS CLEAR HE SAID THAT SUCH PROJECTS REQUIRE PRIOR PERMIT APPROVAL THE REFINERY IS ONE OF THE LARGEST SOURCES OF SMOGPRODUCING POLLUTANTS IN THE LOS ANGELES BASIN STATE POLLUTION CONTROL OFFICIALS CALLED THE EPA'S ACTIONS TOTALLY INAPPROPRIATE ASSERTING THAT CHEVRON'S HEAD START ON CONSTRUCTION WAS INTENDED TO PROMOTE CLEAN AIR BY ASSURING EARLY AVAILABILITY OF LESS POLLUTING GASOLINE THE EPA INITIALLY ORDERED CHEVRON TO HALT ALL CONSTRUCTION WORK BY LAST FRIDAY BUT THEN EXTENDED THE DEADLINE AT THE LAST MINUTE FOR ANOTHER WEEK AND AGREED TO DISCUSS THE MATTER FURTHER WITH THE COMPANY WE THINK THERE SHOULD BE A LEVEL PLAYING FIELD FOR ALL OIL FIRMS AS THEY MOVE TO UPGRADE REFINERIES TO PRODUCE CONGRESSIONALLYMANDATED REFORMULATED GASOLINE BY JANUARY 1995 THE EPA'S MR GLENN SAID SOME OF CHEVRON'S COMPETITIORS HE NOTED HAVE DELAYED CONSTRUCTION PROJECTS IN CALIFORNIA AND OTHER WESTERN STATES PENDING FINAL PERMIT APPROVALS THE POTENTIAL COSTS FOR CHEVRON EXTEND BEYOND THE PUBLIC RELATIONS BLACK EYE CONSTRUCTION DELAYS COULD MAKE IT MORE DIFFICULT FOR THE COMPANY TO MEET THE 1995 DEADLINE IT ALSO FACES POTENTIAL CIVIL FINES OF AS MUCH AS 25000 A DAY FOR EACH VIOLATION IT ISN'T CLEAR WHAT FURTHER ACTION IF ANY THE EPA PLANS TO TAKE 9310040090 931004 FOREIGN EXCHANGE DOLLAR RISES AGAINST MARK IN TOKYO IN A REACTION TO THE CHAOS IN MOSCOW A WALL STREET JOURNAL NEWS ROUNDUP THE DOLLAR ROSE SHARPLY AGAINST THE MARK AT THE OPENING OF ASIAN TRADING MONDAY AS THE CHAOS IN MOSCOW CAUSED MONEY TO BE SHIFTED INTO THE CURRENCY HAVEN EARLY IN THE TRADING DAY MARKET PARTICIPANTS SOUGHT TO MOVE OUT OF MARKDENOMINATED INVESTMENTS GIVEN THE BIG GERMAN ECONOMY'S PROXIMITY TO EVENTS IN MOSCOW BUT AFTER ITS EARLY RISE THE DOLLAR EASED A BIT AT MIDDAY THE DOLLAR STOOD AT 16487 MARKS WELL ABOVE ITS QUOTE OF 16315 MARKS IN NEW YORK LATE FRIDAY BUT OFF FROM ITS LEVEL OF 16531 MARKS EARLIER MONDAY THE FRIDAY QUOTE HAD BEEN DOWN FROM 16330 MARKS THURSDAY THE DOLLAR ALSO STOOD AT 10608 YEN UP FROM 10595 YEN IN NEW YORK FRIDAY ON THURSDAY THE DOLLAR WAS QUOTED AT 10618 YEN IN NEW YORK CURRENCY DEALERS SAID THEY EXPECTED THE US CURRENCY TO GAIN FURTHER STRENGTH FROM THE UPHEAVAL IN RUSSIA THE RUSSIAN SITUATION APPEARS TO BE WORSENING AND THE DOLLAR IS GETTING SUPPORT AHEAD OF EUROPEAN CURRENCIES BECAUSE OF THAT SAID A DEALER IN WELLINGTON NEW ZEALAND WITH THE LEVEL OF UNCERTAINTY THAT THERE IS IN RUSSIA AT THE MOMENT THINGS COULD BE A LOT MORE VOLATILE MIKE SYMONDS THE CHIEF DEALER AT BANK OF NEW ZEALAND NOTED THAT YOU DON'T GO AGAINST THE MARKET WHICH IS VERY KEEN ON BUYING DOLLARS ON THIS SORT OF NEWS HE ADDED IT COMES BACK TO WHERE PEOPLE ARE HAPPY TO PUT THEIR MONEY AND GIVEN THE HISTORICAL RELATIONSHIP BETWEEN RUSSIA AND GERMANY THE MARK IS OBVIOUSLY THE ONE THAT WILL SUFFER THE WEEKEND DEVELOPMENTS IN MOSCOW CAUSED THE DOLLAR TO REVERSE THE COURSE IT ESTABLISHED ON FRIDAY WHEN A WEAKERTHANEXPECTED US ECONOMIC REPORT HURT THE CURRENCY THE DOLLAR HAD MOVED HIGHER AS US TRADING BEGAN FRIDAY BUOYED BY OPTIMISM ABOUT THE AMERICAN ECONOMY AT MIDMORNING IN NEW YORK HOWEVER IT WAS PULLED DOWN BY A REPORT FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT WHICH SAID THE INDEX THAT IT PUTS TOGETHER FROM A SURVEY OF ITS MEMBERS CREPT UP TO 497 IN SEPTEMBER ALTHOUGH THAT WAS UP FROM 493 IN AUGUST THE READING WAS BELOW MARKET EXPECTATIONS OF A FIGURE OF ABOUT 508 A READING BELOW 50 INDICATES THAT THE MANUFACTURING SECTOR IS GENERALLY DECLINING WHILE A FIGURE ABOVE THAT LEVEL SHOWS THAT THE SECTOR IS EXPANDING TRADERS NOTED THAT THE PURCHASING REPORT FOLLOWED A POSITIVE ECONOMIC REPORT EARLIER IN THE MORNING MAKING THE MARKET'S DISAPPOINTMENT EVER IN THAT EARLIER REPORT THE US COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS WHICH IS MEANT TO GAUGE THE IMPENDING HEALTH OF THE ECONOMY SHOT UP 1 IN AUGUST TO ITS HIGHEST LEVEL ALL YEAR 9310040089 931004 LAW LEGAL BEAT FED PUTS FUGITIVE DOCTRINE TO TEST WITH FINE AGAINST SAUDI BANKER BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A BCCIRELATED CASE IS TESTING THE SCOPE OF A LEGAL DOCTRINE THAT BARS A FUGITIVE IN A CRIMINAL MATTER FROM DEFENDING HIMSELF IN OTHER LEGAL PROCEEDINGS THE DISENTITLEMENT DOCTRINE TYPICALLY HAS BEEN USED TO PREVENT ESCAPED CONVICTS FROM APPEALING THEIR CASES OR FROM FIGHTING RELATED CIVIL SUITS WHILE THEY ARE ON THE LAM BUT NOW IT IS BEING CITED BY THE FEDERAL RESERVE IN AN ADMINISTRATIVE PROCEEDING AGAINST A SAUDI BANKER WHO IS ALSO BEING SOUGHT BY NEW YORK PROSECUTORS TO STAND TRIAL IN A CRIMINAL CASE SHEIK KHALID BIN MAHFOUZ FORMER HEAD OF NATIONAL COMMERCIAL BANK SAUDI ARABIA'S BIGGEST COMMERCIAL BANK WAS INDICTED A YEAR AGO BY THE NEW YORK DISTRICT ATTORNEY FOR ALLEGEDLY DEFRAUDING THE NOWDEFUNCT BCCI HOLDINGS LUXEMBOURG SA AT THE SAME TIME IN THE ADMINISTRATIVE PROCEEDING THE FEDEAL RESERVE BOARD FINED SHEIK KHALID 170 MILLION FOR ALLEGED BREACHES OF US BANKING LAWS THE FED CLAIMS THAT BECAUSE SHEIK KHALID HAS REFUSED TO LEAVE SAUDI ARABIA TO BE TRIED IN NEW YORK STATE CRIMINAL COURT HE HAS NO RIGHT TO DEFEND AGAINST THE 170 MILLION IN FINES THE FED HAS ASKED AN ADMINISTRATIVE LAW JUDGE TO FIND THAT SHEIK KHALID WHO HAS SUBSTANTIAL ASSETS IN THE US MUST PAY THE FINE WITHOUT THE FED'S HAVING TO PROVE ITS CASE TO CHALLENGE THE FED SHEIK KHALID'S LAWYERS HAVE RECRUITED HARVARD CONSTITUTIONALLAW SCHOLAR LAURENCE H TRIBE WHO DESCRIBES THE REGULATORS' REQUEST AS AN OUTRAGEOUS STRETCH OF CONSTITUTIONAL DOCTRINE AND INTERNATIONAL LAW MR TRIBE MAINTAINS THAT IF THE FED PREVAILS IT COULD SET A PRECEDENT THAT WOULD MAKE MANY FOREIGN ASSETS IN THE US VULNERABLE TO GOVERNMENT SEIZURE WHILE DEPRIVING ASSET HOLDERS OF THEIR DAY IN COURT THE FED'S ENFORCEMENT ATTORNEYS SAY THE DISENTITLEMENT THEORY HAS EVOLVED IN RECENT YEARS TO APPLY TO MUCH BROADER CIRCUMSTANCES THAN AN ESCAPED CONVICT'S APPEAL THE DOCTRINE HAS SINCE BEEN EXTENDED TO PRECLUDE FUGITIVES FROM LITIGATING A WIDE RANGE OF CIVIL CLAIMS RELATED TO THE CRIMINAL CHARGES PENDING AGAINST THEM THE FED SAID IN A FILING IN THE CASE THE FED MAINTAINS THE DOCTRINE APPLIES TO SHEIK KHALID BECAUSE THE FINES ARE FOR BANKING VIOLATIONS THAT RESULTED FROM THE FRAUD ALLEGED IN THE NEW YORK INDICTMENT ATTORNEYS FOR SHEIK KHALID SAY THE DOCTRINE SHOULDN'T APPLY BECAUSE THEIR CLIENT IS NOT A FUGITIVE HAVING NEVER APPEARED IN COURT IN THE FIRST PLACE THE FED'S EFFORTS GOT A BOOST THIS SUMMER WHEN THE SAME ADMINISTRATIVELAW JUDGE IN SHEIK KHALID'S CASE AGREED TO A SIMILAR REQUEST AGAINST GHAITH PHARAON ANOTHER DEFENDANT IN THE BANK OF CREDIT & COMMERCE INTERNATIONAL CASE THE ADMINISTRATIVE LAW JUDGE WHOSE FINDINGS MUST GO THE FEDERAL RESERVE BOARD FOR APPROVAL RULED THAT MR PHARAON WAS DISENTITLED FROM FIGHTING 37 MILLION IN FINES BECAUSE THE SAUDI FAILED TO APPEAR IN A FEDERAL CRIMINAL CASE ATTORNEYS FOR MR PHARAON AND SHEIK KHALID HAVE ASKED THE FED'S BOARD OF GOVERNORS TO COMBINE THE TWO CASES TO DECIDE THE DISENTITLEMENT ISSUE THE BOARD'S DECISION COULD BE CHALLENGED IN THE FEDERAL APPEALS COURT FOR WASHINGTON DC SHEIK KHALID'S ATTORNEYS DENY THAT THEIR CLIENT COMMITTED FRAUD OR VIOLATED BANKING REGULATIONS INSTEAD THEY SAY SHEIK KHALID AND HIS FAMILY WERE AMONG THE BIGGEST VICTIMS OF BCCI'S COLLAPSE BECAUSE OF THE MILLIONS OF DOLLARS THEY HAD DEPOSITED WITH THE BANK THE ATTORNEYS SAY SHEIK KHALID 45 YEARS OLD IS IN FRAIL HEALTH BECAUSE OF HEART PROBLEMS AND CAN'T TRAVEL TO THE US THEY SAY THEY ARE PREPARED TO FIGHT THE FEDERAL RESERVE'S ALLEGATIONS HOWEVER BECAUSE THE ADMINISTRATIVE PROCEEDING DOESN'T REQUIRE THAT HE BE PRESENT THE FED SHOULD BE WILLING TO TRY THIS ON THE MERITS SAID GARY NAFTALIS AN ATTORNEY FOR SHEIK KHALID AT NEW YORK LAW FIRM KRAMER LEVIN NAFTALIS NESSEN KAMIN & FRANKEL SUSAN HERMAN A PROFESSOR AT BROOKLYN LAW SCHOOL SAID A US SUPREME COURT DECISION EARLIER THIS YEAR REINED IN THE USE OF THE DISENTITLEMENT DOCTRINE AT LEAST IN CRIMINAL CASES THE GENERAL THRUST OF THAT CASE IS THAT THERE IS NO ABSOLUTE DISENTITLEMENT THEORY TO RELY ON PROF HERMAN SAID THE SUPREME COURT SAID CERTAIN FACTORS SHOULD BE WEIGHED SUCH AS WHETHER THE DEFENDANT'S STATUS AS A FUGITIVE PREVENTS THE COURT FROM ENFORCING ITS DECREES BUT THE STANDARD FOR USING THE DOCTRINE IN AN ADMINISTRATIVE PROCEEDING ISN'T CLEAR A SPOKESMAN FOR THE FED'S LEGAL DEPARTMENT IN NEW YORK SAID HE WASN'T AWARE OF ANY OTHER INSTANCES IN WHICH THE FED HAD CITED THE DISENTITLEMENT THEORY NATIONALLY KNOWN LITIGATOR FRED BARTLIT AND SEVEN OTHER PARTNERS AT CHICAGO'S 400LAWYER KIRKLAND & ELLIS ARE LEAVING TO START THEIR OWN FIRM A LITIGATION BOUTIQUE THAT WILL BREAK FROM THE TRADITION OF BILLING CLIENTS PRIMARILY ON AN HOURLY BASIS THE NEW FIRM WITH OFFICES IN CHICAGO AND DENVER WILL BE CALLED BARTLIT BECK HERMAN PALENCHAR & SCOTT THE DEPARTING PARTNERS FIVE SPECIALIZING IN LITIGATION AND THREE IN CORPORATE LAW SAY THEY ARE TAKING WITH THEM SEVERAL KEY CLIENTS INCLUDING ROYAL DUTCH/SHELL GROUP'S SHELL OIL CO NL INDUSTRIES AND UNITED TECHNOLOGIES IN ADDITION TO MR BARTLIT THE DEPARTING LAWYERS ARE PHILIP S BECK JAMES L PALENCHAR DONALD E SCOTT KAREN L CHAPMAN MARK E FERGUSON THOMAS R STEPHENS AND SIDNEY N HERMAN WHO WILL BE THE NEW FIRM'S MANAGING PARTNER THEIR RESIGNAOCT 22 MESSRS HERMAN AND BARTLIT SAID THE GROUP PLANS TO MAKE SUBSTANTIAL INVESTMENTS IN NEW TECHNOLOGY IN LEGALDOCUMENT SEARCH PROGRAMS AND NETWORK COMMUNICATIONS SYSTEMS TO IMPROVE EFFICIENCY AND CUT COSTS THE NEW FIRM ALSO WILL REPLACE THE USUAL HOURLY RATE BILLING SYSTEMS WITH A VARIETY OF PERFORMANCEBASED INCENTIVES AND BONUSES MR BARTLIT SAID KIRKLAND & ELLIS SENIOR PARTNER FRANK CICERO SAID MR BARTLIT HAS BEEN PUSHING FOR MORE CREATIVE FEE ARRANGEMENTS WITH HIS OWN CLIENTS FOR SOME TIME I'M NOT AWARE OF ANY CASE WHERE FRED HAS BEEN DISCOURAGED FROM CREATIVE FEE ARRANGEMENTS MR CICERO SAID HE'S A CRITIC OF HOURLY RATE SYSTEM BUT I THINK MARKET TESTS SHOW CLIENTS STILL PREFER THE HOURLY RATE SYSTEM WE BELIEVE WE OPERATE EFFICIENTLY WITH THEM MR CICERO SAID HE ANTICIPATES THAT SOME KIRKLAND & ELLIS CLIENTS WILL TAKE SOME BUT NOT ALL OF THEIR LEGAL WORK TO MR BARTLIT'S NEW GROUP WE DO NOT EXPECT THIS TO HAVE AN ADVERSE IMPACT FINANCIALLY OR IN TERMS OF RELATIONSHIPS WITH CLIENTS MR CICERO SAID WE REGRET THAT THESE PEOPLE ARE LEAVING BUT WE DON'T REGARD IT AS A BLOW IN A FRESH TWIST ON PUBLICINTEREST WORK BY LAW FIRMS SEVEN LARGE PHILADELPHIA FIRMS EACH WILL LEND A FULLTIME ATTORNEY TO A COMMUNITY LEGAL ORGANIZATION INSTEAD OF IMMEDIATELY JOINING A FIRM THE RECENT LAWSCHOOL GRADUATES WILL GO TO A PUBLICINTEREST LEGAL GROUP OF THEIR OWN CHOOSING FOR A YEAR THEY WILL WORK AT THE FIRM'S EXPENSE BUT EARN HALF OF THE FIRM'S USUAL FIRSTYEAR SALARY THE NEXT YEAR THEY WILL RETURN TO THE FIRM AND AGAIN EARN HALF THE REGULAR ASSOCIATE SALARY OF ROUGHLY 60000 THE FOLLOWING YEAR THEY WILL RETURN TO FULL PAY LAW FIRMS PARTICIPATING IN THE PROGRAM SCHEDULED TO START NEXT FALL ARE MORGAN LEWIS & BOCKIUS DECHERT PRICE & RHOADS BALLARD SPAHR ANDREWS & INGERSOLL SCHNADER HARRISON SEGAL & LEWIS DRINKER BIDDLE & REATH MONTGOMERY MCCRACKEN WALKER & RHOADS AND HANGLEY CONNLLY EPSTEIN CHICCO FOXMAN & EWING MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9310040088 931004 MARKETING & MEDIA ADVERTISING DR PEPPER WRAPS NEW AD PACKAGE IN STARS STRIPES AND HEARTSTRINGS BY KEVIN GOLDMAN DR PEPPER WANTS TO BE AS AMERICAN AS MOM APPLE PIE AND GULP COCACOLA THE SWEETTASTING CARBONATED SOFT DRINK WHICH BOUNDED ONTO THE NATIONAL SCENE A QUARTER CENTURY AGO WITH PULSATING ADVERTISING FEATURING HIGHKICKING DANCERS SINGERS AND ROCK JINGLES IS RADICALLY CHANGING ITS TUNE IN A NEW TELEVISION ADVERTISING CAMPAIGN SCHEDULED TO BEGIN TOMORROW DR PEPPER SEEMS TO BE ATTEMPTING TO BECOME PART OF THE COUNTRY'S MAINSTREAM AND NO LONGER HANG OUT ON THE CUTTING EDGE THE NEW SERIES OF COMMERCIALS INVOKES HEARTTUGGING IMAGES OF SMALLTOWN AMERICA AND EVEN OLD GLORY ITSELF DR PEPPER'S AD AGENCY OF 25 YEARS YOUNG & RUBICAM HAS PRODUCED COMMERCIALS THAT FEATURE DAD AND DAUGHTERS IN A FIELD OF DAISIES AN ELDERLY MAN PLACING HIS HAND ON THE KNEE OF HIS TEENAGE GRANDSON WHO SPORTS AN EARRING A YOUNG WOMAN ON A DATE USING SIGN LANGUAGE A CHILD STARING IN WONDER AT A CLOWN PASSING HIM IN A PARADE AND A PAIR OF NEWLYWEDS STARTING MARRIED LIFE ON THE BACK OF A MOTORCYCLE HAL RINEY WOULD BE PROUD EXCEPT THAT MR RINEY THE KING OF AMERICANA SPOTS HAD NOTHING TO DO WITH THESE ADS WHILE IT'S ALWAYS RISKY TO CHANGE THE FUNDAMENTAL IMAGE OF A PRODUCT MARKETING EXPERTS AGREE THAT THE CALCULATION ISN'T MISGUIDED IN THE CASE OF DR PEPPER A UNIT OF DR PEPPER/SEVENUP OF DALLAS CURIOUSLY HOWEVER DR PEPPER IS WRAPPING ITSELF IN THE STARS AND STRIPES JUST AS COCACOLA'S FLAGSHIP BRAND IS FREEING ITSELF FROM COMMERCIALS REPLETE WITH AMERICANA AND TRYING ADS FEATURING EVERYTHING FROM GLITZ TO GRUNGE THIS SOUNDS LIKE CHEVROLET WITH ITS WARM AND FUZZY IMAGES AND EVERYONE HAS TRIED IT ONCE UPON A TIME SAYS JOHN LISTER CHIEF CREATIVE OFFICER OF LISTER BUTLER A NEW YORK BRANDIDENTITY FIRM BUT IT TOUCHES THE HEARTSTRINGS OF A WIDER AUDIENCE RATHER THAN THE TEENYBOPPER STUFF THEY WERE USING TOM PIRKO PRESIDENT OF BEVMARK A NEW YORK BEVERAGE CONSULTING FIRM SAYS DR PEPPER'S TIMING IS RIGHT BIGBRAND SOFT DRINKS ARE GETTING HAMMERED BY PRIVATELABEL BRANDS AND NEW NONCARBONATED PRODUCTS DR PEPPER IS TRYING TO BRING ITS BRAND INTO THE FOLD BY SHOWING CONSUMERS THAT THE PRODUCT IS PART OF EVERYDAY AMERICAN LIFE A LIFE THEY WOULD LOVE TO HAVE DR PEPPER IS POURING MONEY INTO THE EFFORT INCREASING ITS AD BUDGET NEXT YEAR BY 10 TO ALMOST 70 MILLION THE SPOTS WILL BE SHOWN HEAVILY ON TELEVISED SPORTS IN THE FOURTH QUARTER INCLUDING THE MAJOR LEAGUE BASEBALL CHAMPIONSHIP SERIES ON CBS AS WELL AS MONDAY NIGHT FOOTBALL ON ABC AND OTHER NATIONAL FOOTBALL LEAGUE CONTESTS THE COMMERCIALS WILL BE SEEN ON ALL FOUR MAJOR BROADCAST NETWORKS ON PRIMETIME SERIES BEGINNING IN JANUARY EACH AD FEATURES A VARIATION ON A NEW JINGLE THE TUNE HEARD OVER EXQUISITELY PHOTOGRAPHED IMAGES INCLUDES THE LYRICS WE'RE A PART OF THE FUTURE WE'RE THE HEART AND SOUL WE'RE THE VOICE OF TOMORROW YOU'RE A PART OF ME THAT'S THE HEART OF ME WITHOUT YOU I'M JUST A LONELY MELODY BUT TOGETHER WE ARE HARMONY YOU'LL ALWAYS BE A PART OF ME DR PEPPER YOU'RE THE HEART OF ME THE TAGLINE ON EACH SPOT JUST WHAT THE DR ORDERED IRREVERENCE ONCE THE TRADEMARK OF DR PEPPER'S ADS HAS BEEN TOTALLY EXORCISED WE NOW WANT TO CONVEY REFRESHMENT SOCIABILITY AND FUN SAYS JOHN CLARKE DR PEPPER'S SENIOR VICE PRESIDENT OF MARKETING WE WANTED TO ADD AN EMOTIONAL ELEMENT TO THE ADVERTISING AND STRENGTHEN THE BOND BETWEEN DRINKERS AND THE BRAND DR PEPPER'S CHANGE IN ADVERTISING COMES AS IT EXPERIENCES HEALTHY GROWTH IN AN OTHERWISE SLUGGISH CATEGORY ITS SUPERMARKET SALES ROSE 118 TO 1738 MILLION IN THE 28 WEEKS ENDED JULY 11 ACCORDING TO DATA SUPPLIED BY INFORMATION RESOURCES INC TO FINISH IN SIXTH PLACE AMONG SOFTDRINKS DIET DR PEPPER FINISHING NO 7 ROSE 63 IN SALES TO 803 MILLION IN COMPARISON TOP RANKED COCACOLA CLASSIC HAD MODERATE GROWTH OF 34 TO 8632 MILLION WHILE SALES OF DIET COKE FELL 26 TO 6189 MILLION AND PEPSICOLA DROPPED 3 TO 8482 MILLION PRIVATE LABELS BOASTED SALES OF 1034 MILLION A SOLID INCREASE OF 246 BUT DR PEPPER SAYS IT ISN'T HOPING TO ATTRACT NEW CONSUMERS TO THE BRAND RATHER IT WANTS TO APPEAL TO THE TWOTHIRDS OF DR PEPPER DRINKERS WHO ARE DESCRIBED ONLY AS LIGHT TO MODERATE QUAFERS WE WANT TO HAVE THEM CONSUME MORE DR PEPPER SAYS MR CLARKE THAT GOAL IS MORE ACCESSIBLE AND MORE AFFORDABLE THAN CONVERTING NONDR PEPPER DRINKERS THE NEW AD CAMPAIGN NATURALLY DISPLACES THE EXISTING EFFORT SO SAY GOODBYE TO WANNABE ACTOR TERRY GATENS THE 1990S DR PEPPER VERSION OF ACTOR DAVID NAUGHTON WHO FIRST PRANCED HIS WAY THROUGH THE BRAND'S SPOTS TWO DECADES AGO PLEADING WITH ONE AND ALL TO BE A PEPPER TOO MR CLARKE SAYS THERE ARE NO PLANS FOR MR GATENS TO APPEAR IN DR PEPPER SPOTS OTHER THAN A POSSIBLE CAMEO 9310040087 931004 BUSINESS BRIEF FIAT AUTO MAKER PUTS PRICE TAG ON SWAP WITH RINASCENTE ITALIAN AUTO MAKER FIAT SPA ANNOUNCED DETAILS OF THE SWAP AGREEMENT INVOLVING RINASCENTE THAT IS EXPECTED TO BRING IN 870 BILLION LIRE 547 MILLION TO THE COMPANY AS PREVIOUSLY REPORTED THE TRANSACTION INVOLVES AN EXCHANGE FOR 58 OF RINASCENTE'S SHARE CAPITAL AT A RATE OF FOUR RINASCENTE SHARES FOR EVERY 100 FIAT SHARES FIAT CONFIRMED THAT ITS HOLDING COMPANY IFIL WILL MAKE A PUBLIC OFFERING FOR RINASCENTE SHARES FIAT SAID THAT AT THE CONSOLIDATED LEVEL THE ADDED VALUE WOULD BE 432 BILLION LIRE THE DEAL PUTS A PRICE OF 9500 LIRE ON THE RINASCENTE SHARES THE OFFER WILL START WITH THE NOVEMBER STOCK EXCHANGE TRADING ACCOUNT AND WILL END WITHIN THE SAME MONTH FIAT SAID FIAT ANNOUNCED ITS PLANS FOR THE RINASCENTE SHARE SWAP TUESDAY ALONG WITH A 50 TRILLION LIRE CASH CALL THAT INVOLVES A 3234 TRILLION LIRE CAPITAL INCREASE 9310040086 931004 ENTERTAINMENT BANDA RIDES WAVE OF HISPANIC PRIDE BY CRISTINE GONZALEZ STAFF REPORTER OF THE WALL STREET JOURNAL TURLOCK CALIF IN A PARKING LOT IN THIS AGRICULTURAL TOWN EAST OF SAN FRANCISCO SUPERBANDIDO'S 10 MEMBERS VAULT ONSTAGE TWIRLING TRUMPETS OVERHEAD AND RIDING SAXOPHONES LIKE HORSES WITH THE FIRST OOMPAHS OF THE GROUP'S MEXICAN BANDA MUSIC HUNDREDS OF COUPLES BEGIN TO DANCE CLICKING THEIR BOOTS ON THE ASPHALT AND BLENDING SENSUOUS LATIN BALLROOM COUNTRY AND WESTERN TWOSTEP AND OLDFASHIONED POLKA FAR FROM CALIFORNIA'S VAST MEXICANAMERICAN ENCLAVES OTHERS TOO ARE JUMPING ON THE BANDA WAGON AT CHICAGO'S EL NOA NOA A CLUB THAT FAILED TO LURE CROWDS WITH RAP MUSIC A FEW YEARS AGO 2500 PEOPLE NOW CRAM INSIDE TO BANDA DANCE FROM 7 PM TO 5 AM ON WEEKENDS AND THE RATINGS SUCCESS OF AN ALLBANDA FORMAT AT LOS ANGELES'S KLAX HAS LED SCORES OF OTHER SPANISHLANGUAGE STATIONS IN THE US TO FEATURE THE MUSIC PEOPLE COULDN'T BELIEVE IT SAYS MALU ELIZONDO OF THE LEADING BANDA RECORD LABEL FONOVISA SALSA MUSIC NEVER DID THAT OR LAMBADA RATINGS WEREN'T AFFECTED BY THEM AT ALL BANDA'S MUSICAL MIX BUILT AROUND TRUMPETS TROMBONES SAXES AND TUBAS CAN BE SURPRISING NO GUITARSTRUMMING MARIACHIS PLEASE ALTHOUGH THE TUBA'S OOMPAH SOUND IS INCREASINGLY BEING PRODUCED BY KEYBOARD SYNTHESIZERS WHAT'S ALSO SURPRISING IS HOW QUICKLY BANDA SPANISH FOR BAND HAS FOSTERED A NEW LIVE AND RECORDED MUSIC SPECIALTY BY TAPPING INTO THE SWELLING MEXICANAMERICAN PRIDE MOVEMENT THE ONLY PHENOMENON I CAN COMPARE IT TO WOULD BE ROCKANDROLL IN THE US SAYS WILFREDO PRIETO FONOVISA'S DIRECTOR OF OPERATIONS THE RECORD UNIT OF MEXICO'S TELEVISA INC EXPECTS TO SELL MORE THAN 26 MILLION OF BANDA THIS YEAR UP 75 IN THE PAST THREE YEARS AND BANDA GROUPS SUCH AS ITS BANDA MACHOS BANDA VALLARTA SHOW AND SUPERBANDIDO CAN BRING IN BETWEEN 10000 AND 40000 FOR A PERFORMANCE FONOVISA SAYS ITS BIGGEST BANDA RELEASE BANDA MACHOS' CASIMIRA ALBUM SOLD 300000 COPIES OVER THE LAST YEAR THOUGH THE INDEPENDENT SOUNDSCAN MARKETMONITORING SYSTEM CAN'T CONFIRM THE NUMBER BECAUSE SO MANY SALES TAKE PLACE IN LATIN SHOPS THAT IT DOESN'T TRACK BANDA'S SUCCESS IN THE US IS MAKING MAINSTREAM RECORD COMPANIES TAKE NOTICE TIME WARNER INC'S SIXYEAROLD WEA LATINA LABEL HAS STARTED MAKING ITS OWN BANDA RECORDINGS AND MIXING BANDA CUTS INTO ITS OTHER LATIN ALBUMS SAYS SERGIO ROZENBLAT WEA LATINA'S VICE PRESIDENT AND GENERAL MANAGER OUT SHORTLY NAVIDAD CON BANDA FEATURING WHAT HE CALLS THE CHRISTMAS CLASSICS JOSE BEJAR PRESIDENT OF THORN EMI PLC'S EMI LATIN ANOTHER LABEL SET UP TO REACH THE HUGE HISPANIC MARKET NOTES THAT DISTRIBUTION OF BANDA AND OTHER LATIN MUSIC HAS BEEN A PROBLEM IN ADDITION TO A RELATIVELY SMALL PRESENCE IN BIG OUTLETS LIKE TOWER RECORDS BANDA ALBUMS ARE FREQUENTLY COUNTERFEITED AND PIRATED BANDA SELLS CHEAP AT FLEA MARKETS BUT BIG RECORD COMPANIES ARE PUSHING LATIN TAPES AND COMPACT DISKS MORE IN THE NATIONAL CHAINS NOW YOU HAVE A LOT OF BILINGUAL HISPANICS WHO WILL NOT GO INTO THE LATIN MOM AND POP SHOPS MR BEHAR SAYS IN SOME WAYS BANDA MUSIC IS HARDLY NEW IT ORIGINATED IN THE 1800S WHEN GERMAN POLKAS FROM SOUTH TEXAS EUROPEAN SETTLEMENTS CAUGHT ON WITH THE LOCAL RANCHERO MUSICIANS NOT UNTIL A SAUCY REPERTOIRE OF DANCES EVOLVED A FEW YEARS AGO THOUGH DID BANDA SPREAD TO NIGHTCLUBS AND AIRWAVES FIRST ACROSS THE WEST THEN TO HISPANICS IN OTHER US CITIES IT'S LIKE THE HOTTEST THING SAYS TERESA GAETA A 25YEAROLD WHO WORKS AT A CHICAGO RADIO STATION AND LOVES TO DANCE WITH THE CROWD AT EL NOA NOA THE MUSIC'S GREATEST IMPACT MAY BE CULTURAL MUSICOLOGISTS SAY IT REFLECTS A NEWFOUND ETHNIC PRIDE AMONG MEXICANAMERICANS BANDA DANCERS FLAUNT THEIR HERITAGE IN ITEMS OF CLOTHING LEATHER STRIPS CALLED CORREAS FOR EXAMPLE ARE ENGRAVED WITH ZACATECAS SINALOA JALISCO AND OTHER STATE NAMES AND SOME BANDA CELEBRATES RACIAL FEELINGS THAT ONCE GOT SHORT SHRIFT IN MUSIC BANDA MACHOS' HIT INDIO QUIERE LLORAR THE INDIAN WANTS TO CRY TELLS OF A MAN REJECTED BY HIS LOVER'S WEALTHY NONINDIAN FAMILY IT'S KIND OF LIKE WHEN THE BLACK MOVEMENT HAD BLACK IS BEAUTIFUL' SAYS JAVIER FUENTES A DISK JOCKEY AT TURLOCK'S KLOQFM NOW THE SAME IS HAPPENING WITH THE MESTIZO AS HISPANICS WITH MIXED EUROPEAN AND AMERICANINDIAN ANCESTRY ARE CALLED THE MUSIC IS A WAY OF RECLAIMING THEIR PAST ADDS STEVEN LOZA WHO TEACHES ETHNOMUSICOLOGY AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES YOU FEEL THIS VOID IF YOU ALWAYS KEEP AVOIDING YOUR CULTURE SO AT ONE POINT OR ANOTHER YOU'RE GOING TO EMBRACE IT SOME SIGNS OF MEXICANAMERICAN PRIDE SUCH AS THE CORREAS CAN CONFUSE OUTSIDERS A LOT OF PEOPLE ARE NAIVE AND THINK OH MY GOD WHO ARE THESE PEOPLE IN THE ZACATECAS GANG' SAYS BART J GODINEZ WHO IS SELLING HATS AT ONE OF THE MARKETS THAT OFTEN SPRING UP OUTSIDE BANDA EVENTS MR BEJAR OF EMI LATIN NOTES THAT CLOTHING STORES HAVE SPRUNG UP IN MEXICANAMERICAN NEIGHBORHOODS JUST TO PROVIDE BANDA DANCE WARDROBES WHICH FOLLOW STRICT RULES ABOUT WHERE TO PLACE A HANDKERCHIEF AND HOW TO TILT ONE'S COWBOY HAT A COMPLETE BANDA UNIFORM FOR WOMEN INCLUDES A COWBOY HAT BIG LOOP EARRINGS SLEEVELESS SHIRT TIED ABOVE THE WAIST FRINGED SHORTS AND KNEEHIGH BOOTS I SWEAR I HAVE EVERY KIND OF BOOT BLACK PURPLE BROWN WHITE SHORT AND TALL SAYS DOLORES GARCIA A SUPERVISOR AT A TACO BELL RESTAURANT WHO IS BANDA DANCING AT THE TURLOCK PARKING LOT 9310040084 931004 BUSINESS BRIEF CIE DE SUEZ TALKS RESUME WITH UAP ABOUT GROUPE VICTOIRE UNIT FRANCE'S CIE DE SUEZ AND STATECONTROLLED UNION DES ASSURANCES DE PARIS RECENTLY RESUMED NEGOTIATIONS OVER THE FUTURE OF SUEZ'S INSURANCE UNIT GROUPE VICTOIRE THE COMPANIES SAID IN A BRIEF STATEMENT SUEZ AND UAP SAID THE DISCUSSIONS THE RESULTS OF WHICH AREN'T YET KNOWN ARE BEING PURSUED ACTIVELY UAP HAS A 34 STAKE IN VICTOIRE UAP AND SUEZ SPOKESMEN HAD NO FURTHER COMMENT ON THE ANNOUNCEMENT BUT PEOPLE IN THE FINANCIAL SECTOR FAMILIAR WITH THE TALKS SAID THEY HAVE BEEN UNDER WAY FOR A FEW WEEKS THE PEOPLE SAID THE ANNOUNCEMENT APPARENTLY CAME AT THE REQUEST OF BANQUE NATIONALE DE PARIS A UAP SHAREHOLDER ON ITS WAY TO IMMINENT PRIVATIZATION ACCORDING TO THE PEOPLE BNP WANTS TO DISPLAY FULL FINANCIAL TRANSPARENCY AHEAD OF THE PRIVATIZATION WHICH COULD BEGIN AS SOON AS THIS WEEK BNP OWNS 10 OF UAP NOW AND WILL OWN 15 AFTER THE PRIVATIZATION 9310040083 931004 TRACKING THE ECONOMY BY ALAN YONAN JR THE SEPTEMBER EMPLOYMENT REPORT DUE OUT THIS WEEK WILL BE CLOSELY WATCHED TO SEE WHETHER AUGUST'S DECLINE IN PAYROLL JOBS WAS A ONETIME OCCURRENCE OR THE START OF A DOWNTURN IN HIRING MANY ECONOMISTS BELIEVE THE FORMER AND EXPECT THAT NONFARM PAYROLLS GREW ANYWHERE FROM 100000 TO 200000 IN SEPTEMBER DANIEL BACHMAN SENIOR ECONOMIST AT WEFA GROUP IN BALA CYNWYD PA ESTIMATES NONFARM PAYROLL JOBS INCREASED 140000 IN SEPTEMBER WITH GAINS IN SERVICE INDUSTRIES MORE THAN OFFSETTING LOSSES IN MANUFACTURING FACTORY JOBS CONTINUE TO DECLINE DESPITE A PICKUP IN MANUFACTURING PRODUCTION WE'RE SPECULATING THAT THERE HAS BEEN A SHIFT TOWARD MORE TEMPORARY WORKERS WHO AREN'T COUNTED IN THE MANUFACTURING SECTION OF THE PAYROLL REPORT MR BACHMAN SAID SO IT WOULD NOT BE SURPRISING TO HAVE MANUFACTURING OUTPUT GROW BUT HAVE A DECLINE IN WORKERS A 140000 INCREASE IN PAYROLL JOBS WOULD BE IN LINE WITH THE AVERAGE MONTHLY GAIN OF 150000 PAYROLL JOBS SO FAR THIS YEAR MR BACHMAN SAID HE ADDED THAT HE EXPECTS JOB GROWTH WILL CONTINUE AT ITS CURRENT PACE FOR THE BALANCE OF THE YEAR THAT WOULD BE AN IMPROVEMENT OVER LAST YEAR'S 80000 AVERAGE MONTHLY INCREASE BUT STILL BELOW JOB GROWTH IN PAST ECONOMIC RECOVERIES 9310040082 931004 OGELTHORPE POWER APPROACHES TREASURY ON REFINANCING DEBT WASHINGTON OGELTHORPE POWER CORP HAS APPROACHED THE TREASURY ABOUT REFINANCING IN THE PRIVATE BOND MARKET ITS 3 BILLION IN DEBT OUTSTANDING WITH THE DEPARTMENT'S FEDERAL FINANCING BANK THE PURPOSE OF ANY SUCH DEBT REFINANCING WOULD BE TO TAKE ADVANTAGE OF LOW INTEREST RATES OGELTHORPE AN ATLANTABASED ELECTRICGENERATION AND TRANSMISSION COOPERATIVE THAT DISTRIBUTES WHOLESALE POWER TO 39 LOCAL ELECTRIC COOPERATIVES HAS PUBLICLY DISCUSSED GENERAL PLANS TO REFINANCE HIGHCOUPON DEBT THE KEY QUESTION IS THE SIZE OF THE PREPAYMENT PENALTY OGELTHORPE WOULD HAVE TO PAY TO THE TREASURY IF IT REFINANCES ITS FFB DEBT WHICH IS GUARANTEED BY THE RURAL ELECTRIFICATION ADMINISTRATION OGELTHORPE'S SENIOR VICE PRESIDENT FOR FINANCE EUGEN HECKL RECENTLY MET WITH TREASURY OFFICIALS TO DISCUSS DETAILS OF A PROPOSED MARKET REFINANCING OF ALL ITS FFB DEBT TREASURY OFFICIALS SAID MR HECKL COULDN'T BE REACHED FOR COMMENT AND AN OGELTHORPE SPOKESMAN REPEATEDLY DECLINED TO COMMENT ON THE MATTER SMITH BARNEY SHEARSON INC IS WORKING WITH OGELTHORPE ON THE FFB QUESTION BUT A SMITH BARNEY SPOKESMAN SAID THE FIRM CURRENTLY HAS NO FORMAL RELATIONSHIP WITH OGELTHORPE ON THIS MATTER AND REFERRED QUESTIONS TO OGELTHORPE TREASURY OFFICIALS SAID OGELTHORPE WANTS TO DO THE REFINANCING WHILE INTEREST RATES REMAIN LOW AND WANTS A PARTIAL WAIVER OF THE PREPAYMENT PENALTIES THE FFB WAS CREATED NEARLY TWO DECADES AGO TO REDUCE FEDERAL BORROWING COSTS BY ASSISTING WITH AND COORDINATING AGENCY AND GUARANTEED BORROWING A RECENT CONGRESSIONAL BUDGET OFFICE REPORT SAID THE FFB IS WITHERING AWAY FOR VARIOUS REASONS INCLUDING BORROWERS' RETURN TO THE PRIVATE CAPITAL MARKETS ONE RECENT DEPARTURE WAS THE TENNESSEE VALLEY AUTHORITY 9310040081 931004 BUSINESS BRIEF ENICHEM SPA ITALIAN CHEMICAL COMPANY POSTS WIDER FIRSTHALF LOSS ITALIAN STATEOWNED CHEMICAL COMPANY ENICHEM SPA SAID ITS FIRSTHALF CONSOLIDATED LOSS WIDENED TO 1052 TRILLION LIRE 661 MILLION FROM 721 BILLION LIRE A YEAR EARLIER ENICHEM SAID PARENT COMPANY SHAREHOLDERS' EQUITY SANK TO 2707 TRILLION LIRE AT THE END OF JUNE LESS THAN A THIRD OF NOMINAL VALUE SUCH A SITUATION REQUIRES AN INTERVENTION UNDER ITALIAN LAW AN ENICHEM SPOKESWOMAN SAID THE COMPANY WAS CONSIDERING WRITING DOWN OR RECONSTRUCTING CAPITAL OR DEFERRING ITS DECISION TO 1994 ENICHEM CALLED MEETINGS OF ITS BOARD FOR NOV 16 AND DEC 16 TO DECIDE WHICH ACTION TO TAKE THE COMPANY IS TAKING DRASTIC STEPS TO REDUCE DEBT SUCH AS SELLING NONCORE AND UNPROFITABLE BUSINESSES AND SHARPLY REDUCING FIXED COSTS AT FACTORIES AND OFFICES ENICHEM IS THE CHEMICAL ARM OF ITALY'S STATE ENERGY HOLDING COMPANY ENTE NAZIONALE IDROCARBURI 9310040080 931004 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD CONCERN TO MOVE PRODUCTION OF SUBARU LEGACY TO US FUJI HEAVY INDUSTRIES LTD THE JAPANESE MANUFACTURER OF SUBARU AUTOMOBILES IS MOVING THE REST OF ITS SUBARU LEGACY PRODUCTION TO THE US NEXT SPRING SAID A SPOKESMAN FOR THE COMPANY'S AMERICAN SALES UNIT SUBARU OF AMERICA INC THE PRODUCTION OF TURBOCHARGED LEGACY SEDANS WILL MOVE TO FUJI'S PLANT IN LAFAYETTE IND A JOINTVENTURE WITH ISUZU MOTORS LTD THE PLANT ALREADY BUILDS ABOUT 85 OF THE LEGACY SEDANS SOLD IN THE US AND CANADA PRODUCING ABOUT 5000 VEHICLES A MONTH THE YEN'S RISE HAS CAUSED THE PRICE OF USSOLD JAPANESEBRANDED VEHICLES TO SOAR DEPRESSING SALES HERE SUBARU SOLD 63267 VEHICLES THROUGH AUGUST NEARLY 13 FEWER VEHICLES THAN A YEAR AGO OF THOSE SALES 52 WERE LEGACY MODELS 9310040079 931004 THE OUTLOOK CONSUMERS NOW HAVE AN UNUSUALLY BIG ROLE BY FRED R BLEAKLEY NEW YORK MORE AND MORE THE ECONOMY IS DEPENDING ON CONSUMERS TO QUICKEN THE PACE OF RECOVERY FISCALLY STRAPPED FEDERAL AND STATE GOVERNMENTS STILL CAN OFFER LITTLE HELP AND NOW OTHER SECTORS THAT HAD BEEN CARRYING THE BALL ARE TIRING EXPORTS ARE SLIDING BECAUSE OF SPUTTERING ECONOMIES IN OTHER INDUSTRIAL NATIONS AND WITH WEAK SALES GROWTH AT HOME COMPANIES ARE TRIMMING CAPITALSPENDING PLANS THOSE OUTLAYS FOR PRODUCTIVITYENHANCING MACHINES RATHER THAN ADDITIONAL PLANT CAPACITY HAVE BEEN ONE OF THE ECONOMY'S FEW BRIGHT SPOTS FOR THE PAST TWO YEARS THAT PUTS THE FOCUS BACK SQUARELY ON CONSUMERS WHO TRADITIONALLY HAVE LED ECONOMIC RECOVERIES AFTER STARTING SLOWLY THEY SEEM TO BE RISING TO THE CHALLENGE MEASURES OF THEIR CONFIDENCE THOUGH STILL WELL BELOW READINGS EARLIER THIS YEAR ARE EDGING UP PEOPLE ARE BUYING HOMES AUTOS AND OTHER DURABLE GOODS AT A FASTER CLIP THAN LAST YEAR THIS SUMMER THEY ADDED MORE INSTALLMENT DEBT IN TWO MONTHS THAN IN ALL OF 1992 AND THE LATEST ROUNDUP OF DEPARTMENTSTORE SALES FOUND THEM WARMING TO FALL FASHIONS SURE THE PACE IS NOTHING YET LIKE PAST RECOVERIES BUT NEITHER ARE INCOME GAINS AND NEWJOB CREATION WHAT CONSUMERS HAVE GOING FOR THEM NOW ARE A MILD ALBEIT TENUOUS RECOVERY LOW INTEREST RATES AND BOOMING STOCK AND BOND MARKETS LOW INTEREST RATES PUT MONEY IN THEIR POCKETS THANKS TO REFINANCED MORTGAGES TYPICALLY ECONOMISTS SAY 90 OF NEWFOUND DISPOSABLE INCOME IS SPENT NOT SAVED MUTING THE IMPACT HOWEVER IS THE DECLINE IN SPENDING POWER OF SAVERS AND RETIREES WHOSE INCOMES SUFFER FROM THE LOW RATES THE RECOVERY'S BUMPY PACE IS BOTH ENCOURAGING AND WORRISOME ITS DURATION WITHOUT ANY EXCESSES THE RECESSION ENDED 30 MONTHS AGO IS CONVINCING MANY CONSUMERS THAT A RELAPSE IS UNLIKELY SO THEY ARE OPENING UP TO THE IDEA OF SPENDING A LITTLE MORE AND TAKING ON SOME DEBT STOPPING OTHERS HOWEVER ARE THE CONSTANT REMINDERS THAT HARDLY ANYONE'S JOB IS SAFE FROM CORPORATE DOWNSIZING IF YOU KEEP YOUR EMPLOYEES OFF BALANCE DURING THE WEEK THEY RETURN THE FAVOR BY AVOIDING THE SHOPPING MALL ON WEEKENDS SAYS NEAL SOSS FIRST BOSTON CO'S ECONOMIST EVEN SO THOSE WHO ARE WORKING ARE TAKING HOME MORE PAY FUELING THE NEW SPENDING IN JULY AND AUGUST WAGES AND SALARIES ROSE AT A BETTERTHAN7 ANNUAL CLIP A PACE THAT MOODY'S JOHN LONSKI SAYS OVERSHADOWS THE IMPACT OF JOB LOSSES BUT HE DOESN'T EXPECT THE BIG GAINS LARGELY FROM OVERTIME AS COMPANIES KEEP STAFFING LEAN TO LAST ALSO ANY HEAD OF STEAM NOW BEING BUILT UP IN CONSUMER SPENDING WILL BE CHILLED BY THE HIGHER TAX BITE ON UPPERINCOME PEOPLE NEXT YEAR ITS RETROACTIVITY WILL MAKE IT HIT ESPECIALLY HARD IN THE FIRST QUARTER SAYS SUSAN STERNE OF ECONOMIC ANALYSIS ASSOCIATES OF STOWE VT GIVEN THE CHOICE OF REDUCING SPENDING OR SAVINGS AGING BABY BOOMERS WILL OPT TO SPEND LESS SHE PREDICTS UNLESS ANOTHER GROUP PICKS UP THE SLACK SHE SEES OVERALL CONSUMER SPENDING DOWN TO A 22 RATE OF INCREASE NEXT YEAR A FULL PERCENTAGE POINT BELOW HER 1993 FORECAST THE SWING FACTOR IN CONSUMER SPENDING COULD WELL BE THE FINANCIAL MARKETS AND THE UNPREDICTABLE BEHAVIOR PATTERNS CAUSED BY THE SOCALLED WEALTH EFFECT RECENTLY EDWARD HYMAN OF INTERNATIONAL STRATEGY & INVESTMENT GROUP FLASHED IN HIS WEEKLY REPORT ALERT THE SURGE IN STOCKS AND BONDS MAY BE STIMULATING THE ECONOMY BUT WITH MORE INDIVIDUALS IN THE MARKETS THAN EVER BEFORE SOME ECONOMISTS SUCH AS HENRY KAUFMAN THE FORMER SALOMON BROTHERS ECONOMIST WHO NOW RUNS HIS OWN FIRM BELIEVE A FAST RISE IN MONEYMARKET RATES OR SHARP DROP IN EQUITIES COULD SEND STOCK AND BOND INVESTORS FLEEING FOR THE SECURITY OF SHORTTERM INVESTMENTS PERSONAL CONSUMPTION HE ADDS MAY TAKE ON MUCH MORE OF A CYCLICAL HUE THAN IN THE PAST BECAUSE THE HOUSEHOLD SECTOR MAY NOT APPRECIATE ALL THE RISKS IT IS TAKING ON IN SHORT THEY WILL CUT SPENDING IF THE VALUE OF THEIR RETIREMENT FUNDS DROPS INDEED MANY OF THE MARKET'S NEWCOMERS ARE PLAYING WITH THEIR PENSIONFUND ASSETS THERE'S NOW AT LEAST 300 BILLION IN 401K PLANS TYPICALLY INVESTED IN THEIR COMPANY'S STOCK OR STOCK BOND OR MONEYMARKET MUTUAL FUNDS THAT STEMS FROM THE SHIFT FROM DEFINED OR FIXED BENEFIT PENSION FUNDS TO DEFINEDCONTRIBUTION PLANS GIVING EMPLOYEES INVESTMENT CONTROL OVER PART OR ALL OF THEIR CORPORATE RETIREMENT ASSETS PENSION EXPERTS AT HEWITT ASSOCIATES SAY THE FIGURE COULD DOUBLE OVER THE NEXT FIVE YEARS AS SMALLER COMPANIES ALSO CONTRIBUTE TO 401K PLANS THAT EMPLOYEES CAN THEN ENHANCE WITH PRETAX CONTRIBUTIONS OF THEIR OWN EQUALLY BANK CUSTOMERS IN RECENT YEARS HAVE PULLED MORE THAN 300 BILLION OUT OF LOWYIELDING CDS WITH MUCH OF THAT GOING INTO STOCK AND BOND MUTUAL FUNDS SINCE THE END OF 1990 EQUITY AND BOND MUTUAL FUNDS HAVE MORE THAN DOUBLED HOWEVER THE WEALTH EFFECT ON SPENDING ISN'T LIKE THAT IN THE 1980S WHEN THE BULL MARKET IN STOCKS WAS COUPLED WITH A SENSE OF EUPHORIA LARGELY ATTRIBUTABLE TO SURGING HOME PRICES NOW DEPRESSED HOME PRICES AND JOB INSECURITY ARE DAMPING THE WEALTH EFFECT BUT IT COULD KICK IN ON THE DOWNSIDE SAYS IRWIN KELLNER CHIEF ECONOMIST OF CHEMICAL BANKING CORP BECAUSE MORE PEOPLE ARE AFFECTED IF THE MARKETS SHOULD CORRECT 10 TO 15 A CORRECTION WILL HAVE A FAR GREATER EFFECT ON PEOPLE'S SPENDING AND ATTITUDES THAN IN 1987 OR 1989 HE BELIEVES OCTOBER THE MONTH OF MANY SHARP STOCKMARKET DECLINES IN YEARS PAST COULD PROVIDE THE TEST THIS TIME THE ECONOMY MAY HAVE MORE RIDING ON THE OUTCOME 9310040078 931004 BUSINESS BRIEF CHRYSLER CORP REBATE INCENTIVE PROGRAM IS EXTENDED THROUGH DEC 31 CHRYSLER CORP SAID IT EXTENDED ITS INCENTIVE PROGRAM THAT EXPIRED LAST WEEK BY CONTINUING CASH REBATES OF 300 TO 2000 ON SOME 1993 AND 1994 MODELS CHRYSLER OF HIGHLAND PARK MICH SAID IT WILL CONTINUE TO OFFER BUYERS REDUCED FINANCING RATES RANGING FROM 29 TO 69 INSTEAD OF CASH REBATES CHRYSLER SAID IT ISN'T PUTTING CASH REBATES ON ITS NEW LH SEDANS OR 1994 PICKUPS AND MINIVANS BUT THE AUTO MAKER EXTENDED LOW INTEREST LEASE PROGRAMS ON THE CHRYSLER NEW YORKER AND LHS MODELS THROUGH OCT 31 THE NEW PROGRAM WHICH RUNS THROUGH DEC 31 CUTS REBATES BY AS MUCH AS 500 ON 1994 MODELS COMPARED WITH 1993 MODELS CHRYSLER SAID IT WILL CONTINUE TO OFFER FREE AIR CONDITIONING ON CERTAIN 1993 AND 1994 JEEP CHEROKEE MODELS 9310040077 931004 BUSINESS BRIEF HONDA MOTOR CO ACURA '94 MODEL BASE PRICES TO INCREASE AS MUCH AS 12 HONDA MOTOR CO'S ACURA LUXURYCAR DIVISION SAID IT IS RAISING THE BASE PRICE OF ITS 1994 MODELS AS MUCH AS 12 FROM FINAL 1993 PRICES AND AS MUCH AS 15 FROM INTRODUCTORY 1993 PRICES ACURA'S 1994 PRICING STRATEGY SEEMS MORE AGGRESSIVE THAN INCREASES ANNOUNCED LAST MONTH BY NISSAN MOTOR CORP'S INFINITI LUXURY DIVISION AND TOYOTA MOTOR CORP'S LEXUS LUXURY UNIT INFINITI AND LEXUS 1994 PRICES ROSE 6 TO 8 OVER 1993 MODEL PRICES THE JAPANESE AUTO MAKERS BLAME THE PRICE INCREASES ON THE STRENGTH OF THE YEN AND THE ADDITION OF STANDARD EQUIPMENT THE 1994 MODEL LEGEND LS SEDAN WILL CARRY A BASE STICKER PRICE OF 38600 UP 6 FROM 36400 THE CHEAPEST INTEGRA HAS A BASE PRICE OF 14820 UP 12 FROM 13190 THE VIGOR GS WILL COST 28350 UP 4 FROM 27250 ACURA SAID PRICES FOR THE NSX SPORTS CAR WILL BE ANNOUNCED 9310040076 931004 VIACOM MAY GET BACKING OF NYNEX FOR PARAMOUNT BID BY RANDALL SMITH AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK VIACOM INC APPEARED CLOSE TO OBTAINING AN INVESTMENT OF ROUGHLY 1 BILLION FROM NYNEX CORP THE REGIONAL TELEPHONE COMPANY FATTENING ITS WAR CHEST FOR THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC VIACOM'S BID OF 75 BILLION OR 6339 A SHARE FOR PARAMOUNT TRAILS A COMPETING BID OF 97 BILLION OR 8179 A SHARE FROM QVC NETWORK INC SO VIACOM HAS BEEN HOLDING TALKS WITH OTHER COMPANIES INTERESTED IN JOINING FORCES WITH IT ON THE PARAMOUNT FRONT VIACOM HELD WEEKEND TALKS WITH NYNEX THE LATEST REGIONAL BELL OPERATING COMPANY TO SURFACE PROMINENTLY IN SPECULATION ABOUT INVESTORS JOINING VIACOM'S BID ONE PROPERTY OF PARAMOUNT'S THAT COULD BE OF PARTICULAR INTEREST TO NYNEX IS THE OWNERSHIP AND CABLETELEVISION BROADCAST RIGHTS TO THE NEW YORK KNICKS BASKETBALL AND RANGERS HOCKEY TEAMS PEOPLE CLOSE TO VIACOM SAID TALKS WERE ALSO CONTINUING WITH OTHER INVESTORS AND CAUTIONED THAT NO AGREEMENT HAD BEEN REACHED THAT WOULD BE ANNOUNCED BEFORE THE OPENING OF SECURITIES TRADING TODAY HOWEVER OTHER MEDIA EXPERTS SAID THAT NYNEX APPEARED CLOSE TO MAKING AN INVESTMENT OF 12 BILLION FOLLOWING A 600 MILLION INVESTMENT LAST WEEK FROM BLOCKBUSTER ENTERTAINMENT CORP IN VIACOM CONVERTIBLE PREFERRED STOCK PARAMOUNT'S STOCK SAGGED FRIDAY FALLING 125 TO 7775 A SHARE REFLECTING THE ABSENCE OF DEVELOPMENTS THAT WOULD MOVE THE BIDDING CONTEST ALONG AS WELL AS DROPOFFS IN THE STOCKS OF VIACOM AND QVC ALTHOUGH QVC OBTAINED COMMITMENTS FROM ENOUGH BANKS TO MUSTER MORE THAN 3 BILLION IN BANK FINANCING IN SUPPORT OF ITS BID IT HASN'T YET PRESENTED THOSE COMMITMENTS TO PARAMOUNT'S ADVISERS IN ORDER TO BEGIN NEGOTIATIONS WITH PARAMOUNT QVC'S OFFER INCLUES 30 A SHARE IN CASH BANKS THAT JOINED CHEMICAL BANKING CORP QVC'S LEAD BANK INCLUDE TORONTO DOMINION BANK BARCLAYS BANK PLC LONGTERM CREDIT BANK OF JAPAN LTD BANK OF NOVA SCOTIA AND NATIONSBANK CORP QVC WAS EXPECTED TO ANNOUNCE IT HAD OBTAINED THE COMMITMENTS TODAY NYNEX EMERGED LATE LAST WEEK AS A PRIME PROSPECTIVE INVESTOR IN VIACOM ALONG WITH OTHER TELEPHONE COMPANIES SUCH AS BELLSOUTH CORP SOUTHWESTERN BELL CORP AND AMERITECH CORP VIACOM IS ALSO RAISING ABOUT 15 BILLION IN ADDITIONAL BANK DEBT FOR THE 910 A SHARE CASH COMPONENT OF ITS CURRENT OFFER 9310040075 931004 RUSSIAN ROULETTE HARDLINER CHALLENGE TO YELTSIN IS GROWING EVER MORE MENACING FACED WITH RIOTS IN MOSCOW THE PRESIDENT DECLARES A STATE OF EMERGENCY NATIONAL TV STATION STORMED BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA IS TEETERING ON THE BRINK OF A BLOODBATH WITH OPPOSING POLITICAL FORCES STRUGGLING OVER THE NATION'S FUTURE RUSSIAN PRESIDENT BORIS YELTSIN WHO DECLARED A WEEKLONG STATE OF EMERGENCY IN MOSCOW YESTERDAY AFTER ABOUT 10000 FOES WENT ON A RAMPAGE IS FACING A SEVERE CHALLENGE FROM FORCES LED BY ALEXANDER RUTSKOI MR RUTSKOI WAS NAMED ACTING PRESIDENT SEPT 21 BY HARDLINE LAWMAKERS WHO VOTED TO IMPEACH MR YELTSIN OVER HIS ALLORNOTHING GAMBLE TO DISSOLVE PARLIAMENT SO HE COULD PRESS AHEAD WITH HIS FREEMARKET POLICIES MR RUTSKOI DESCRIBES HIMSELF AS A REFORMER BUT HIS ACTIONS DURING THE 13DAY SIEGE SUGGEST OTHERWISE THE MUSTACHIOED CAREER MILITARY MAN HAS LAMBASTED MR YELTSIN'S FREEMARKET POLICIES AND CALLED FOR A RETURN OF THE SOVIET EMPIRE ONCE REGARDED AS A CENTRIST MR RUTSKOI HAS THROWN IN HIS LOT WITH THE MOST RADICAL OF RUSSIA'S POLITICAL FACTIONS THE ALLIANCE OF COMMUNISTS AND RIGHTWING NATIONALISTS THAT FACTION SPARKED YESTERDAY'S UNREST IN THE RUSSIAN CAPITAL IN ADDITION TO THE CLASHES AROUND THE BARRICADED PARLIAMENT BUILDING THE DEMONSTRATORS HEEDING A CALL FROM MR RUTSKOI STORMED BOTH THE MAYOR'S OFFICE AND THE NATIONAL TELEVISIONBROADCASTING STATION FOR MOST OF THE DAY TROOPS LOYAL TO MR YELTSIN PUT UP ONLY TOKEN RESISTANCE THE UNREST PUTS MR YELTSIN IN A PRECARIOUS POSITION TO REGAIN CONTROL OVER MOSCOW AND BY EXTENSION THE WHOLE OF RUSSIA MR YELTSIN ALMOST CERTAINLY NEEDS TO BRING IN LARGESCALE MILITARY FORCE QUICKLY BUT EFFORTS TO REGAIN ORDER WOULD SURELY LEAVE A TRAIL OF DEAD AND WOUNDED THOUGH BOTH SIDES HAD TRIED TO KEEP THE ARMY OUT OF THE POWER STRUGGLE RESOLVING THE CRISIS NOW APPEARS TO BE IN THE HANDS OF THE MILITARY WITHOUT DECISIVE ACTION MR YELTSIN'S HOLD ON POWER COULD WELL BE SHORTLIVED WITH THE BLOCKADE AROUND THE PARLIAMENT LIFTED AND WITH CHAOS REIGNING IN THE CAPITAL MR YELTSIN RISKS A DEFEAT FROM WHICH NO RUSSIAN LEADER COULD BE EXPECTED TO RECOVER HIS ECONOMICREFORM POLICIES WOULD BE IN JEOPARDY WHILE THE PRESIDENT'S REFORMS ARE UNPOPULAR IN MANY QUARTERS MR YELTSIN HAS BEEN ABLE TO PUSH FREEMARKET MEASURES LARGELY BECAUSE OF HIS UNCHALLENGED NATIONAL STATURE MOREOVER HE HAS BEEN ABLE TO PROVIDE POLITICAL PROTECTION FOR MANY IMPORTANT REFORMERS SUCH AS FINANCE MINISTER BORIS FYODOROV AND PRIVATIZATION CZAR ANATOLI CHUBAIS WHO THE RUTSKOI CAMP WOULD LIKE TO GET RID OF THE SIGNIFICANCE HASN'T BEEN LOST IN THE HALLS OF PARLIAMENT WHERE LAWMAKERS AND THEIR AIDES WERE BASKING IN THE AFTERMATH OF THE CLASHES YELTSIN IS FINISHED SAID KONSTANTIN ZLOBIN AN AIDE TO RUSLAN KHASBULATOV THE ANTIYELTSIN CHAIRMAN OF PARLIAMENT PEOPLE WON'T FIGHT FOR YELTSIN THEY DON'T HAVE THE GUTS FOR IT DESPITE A LACK OF POPULAR SUPPORT FOR THE HARDLINERS THE SMALL CROWD THAT HAS KEPT VIGIL OUTSIDE PARLIAMENT DURING THE POLITICAL CRISIS SWELLED TO SEVERAL THOUSAND CROWDS CHEERED AS SOME INTERIOR MINISTRY TROOPS HAVING DEFECTED FROM MR YELTSIN JOINED THE MASSES AROUND THE WHITE HOUSE AS THE PARLIAMENT BUILDING IS KNOWN AS ONE GROUP OF 40 DEFECTING TROOPS MARCHED INTO THE CROWD SEVERAL ELDERLY WOMEN RUSHED FORWARD TO PLANT LARGE KISSES ON THEIR CHEEKS AN OLD MAN BEGAN PLAYING RUSSIAN SONGS ON THE ACCORDION NEARBY AN ELDERLY WOMAN WEARING A FUR HAT SEIZED FROM AN INTERIOR MINISTRY SOLDIER DURING A SCUFFLE DANCED WE SHOULD BREAK OUT THE CHAMPAGNE SHE SAID THE DAY OF VIOLENCE MARKED A CRITICAL TURNING POINT IN THE 13DAYOLD CRISIS IN MOSCOW UNTIL YESTERDAY OPPOSITION TO MR YELTSIN APPEARED ESSENTIALLY HARMLESS WHILE THE LEGISLATORS CONVENING AT TIMES BY CANDLELIGHT PROVIDED A FOCUS FOR THE ANTIYELTSIN OPPOSITION THEY APPEARED TO BE MAINLY A CURIOUS SIDESHOW IT HAD SEEMED ONLY A MATTER OF TIME BEFORE MR YELTSIN QUASHED HIS FOES EITHER BY FORCE OR BY CUTTING DEALS OVER THEIR HEADS WITH POWERFUL REGIONAL LEADERS THE WEEKEND'S EVENTS APPEAR TO HAVE CHANGED EVERYTHING THE RESISTANCE BY THE LAWMAKERS SERVED AS A CATALYST FOR THE CROWDS OF DISAFFECTED MUSCOVITES WHO TOOK TO THE STREETS SUNDAY MANY WERE ELDERLY AND POOR MANY WERE HARDLINE NATIONALISTS OR UNREPENTANT COMMUNISTS THEY FLEW RED FLAGS AND CARRIED MENACING IRON POLES THEY SCREAMED ABOUT CONSPIRACIES AGAINST THE RUSSIAN PEOPLE CONSPIRACIES LED BY JEWS THE CIA AND MR YELTSIN THE PRESIDENT WHO HAS VOWED TO AVOID BLOODSHED APPARENTLY DIDN'T GIVE HIS MEN SHOOTTOKILL ORDERS NOW HE MAY HAVE NO CHOICE PRORUTSKOI FORCES BATTLED FOR THE OSTANKINO BROADCASTING CENTER AND THE NATIONAL TV AIRWAVES WENT DEAD FOR SEVERAL HOURS AT STAKE FOR MR YELTSIN IS THE CRITICAL MEANS FOR CONTROLLING THE FLOW OF NEWS THROUGHOUT RUSSIA WITHOUT IT MR YELTSIN WILL BE HARD PRESSED TO WAGE AN EFFECTIVE PROPAGANDA CAMPAIGN AND RALLY SUPPORTERS JUST HOLDING THE BROADCAST CENTER WILL REQUIRE LARGESCALE FORCE THE CENTER CAME UNDER A HEAVY ONSLAUGHT OF FIREPOWER FROM ARMED LOYALISTS TO PARLIAMENT THEY ATTACKED WITH THE SPOILS OF THEIR EARLIER CLASHES WITH MR YELTSIN'S TROOPS ARMED PERSONNEL CARRIERS GRENADE LAUNCHERS AND A HAIL OF MACHINEGUN FIRE THE CLINTON ADMINISTRATION HAS ALREADY HINTED THAT IN THIS TENSE SITUATION IT MIGHT BACK THE USE OF FORCE BY MR YELTSIN ALTHOUGH WASHINGTON HOPES THE VIOLENCE WOULD BE LIMITED ONE SENIOR OFFICIAL WHO BLAMED YELTSIN'S OPPONENTS FOR PROVOKING THE UNREST SAYS OFFICIALS BELIEVE THE YELTSIN GOVERNMENT WILL DO WHAT THEY NEED TO DO TO RESTORE ORDER PRESIDENT CLINTON REITERATED HIS SUPPORT FOR MR YELTSIN SAYING I STILL AM CONVINCED THAT THE US MUST SUPPORT PRESIDENT YELTSIN WE CAN'T BE IN A POSITION OF WAVERING MR CLINTON NOTED THAT THE US WOULDN'T GET INVOLVED IN THE MOMENTTOMOMENT MANAGEMENT OF THIS CRISIS BUT THAT WASHINGTON WOULD PROTECT THE SAFETY OF AMERICANS IN MOSCOW AND THE US EMBASSY THERE MR YELTSIN'S ADMINISTRATION WHICH HAS BACKED HIM DURING THE TWO WEEKS OF CRISIS ALSO REITERATED ITS SUPPORT FOR THE 62YEAROLD PRESIDENT IN A STATEMENT SUNDAY NIGHT THE GOVERNMENT SAID THAT CRIMINAL ELEMENTS HAVE UNLEASHED A BLOODY MASSACRE AND THAT THE GOVERNMENT HAS TO RESORT TO THE USE OF FORCE TO CURB THE POLITICAL ADVENTURISTS FOR MR YELTSIN THOUGH THE LOYALTY OF THE MILITARY IS BY NO MEANS A GIVEN TRUE DEFENSE MINISTER PAVEL GRACHEV HAS REPEATEDLY STATED HIS BACKING FOR MR YELTSIN AND SPOKESMEN FOR THE MINISTRIES OF INTERIOR AND SECURITY SAID SUNDAY THAT THEY TOO SUPPORT THE PRESIDENT ACCORDING TO THE OFFICIAL RUSSIAN NEWS AGENCY ITARTASS BUT THE ARMY'S BACKING MAY BE TENUOUS IN AN INTERVIEW PUBLISHED IN THE MOSCOW TIMES MR GRACHEV SAID HE ABANDONED HIS STRICT NEUTRALITY AND BACKED MR YELTSIN ONLY AFTER MR RUTSKOI THE RIVAL PRESIDENT NAMED ANOTHER MAN AS HIS DEFENSE MINISTER FROM THE MOMENT THE NEW GOVERNMENT REMOVED ME I STOPPED BEING SUBJECT TO IT MR GRACHEV SAID NOW I ANSWER ONLY TO THE PRESIDENT I AM HUMILIATED AND INSULTED IF MR GRACHEV'S LOYALTIES WERE INITIALLY DIVIDED IT SEEMS CERTAIN THAT THERE ARE SPLITS THROUGHOUT THE RANKS ANALYSTS HAVE ASSUMED THAT MR YELTSIN HAS BEEN WARY OF INVOLVING THE MILITARY IN HIS BATTLES WITH PARLIAMENT IN PART BECAUSE HE DOUBTS THE EXTENT OF THEIR LOYALTY MOREOVER SUPPORT FOR THE PRESIDENT IN A POLITICAL STANDOFF IS ONE THING ASKING SOLDIERS TO FIRE ON FELLOW RUSSIANS IS AN ENTIRELY DIFFERENT MATTER ESPECIALLY GIVEN THE PRESENCE OF SO MANY ELDERLY AND POOR CITIZENS WHO ARE NOW HELPING TO MAN THE BARRICADES OF THE ANTIYELTSIN RESISTANCE THE TURNING POINT ON SUNDAY APPEARED TO COME WHEN ONE OR MORE SNIPERS OPENED FIRE FROM A BUILDING HIGH ABOVE WHERE DEMONSTRATORS WERE MOVING IN ON TROOPS BLOCKING THEIR WAY TO THE WHITE HOUSE SOME AT THE SCENE BELIEVED THE SHOTS CAME FROM INSIDE THE WHITE HOUSE THOUGH THAT WAS IMPOSSIBLE TO PROVE BUT WHATEVER THE SOURCE ONE UNARMED SOLDIER FELL DEAD AFTER BEING HIT IN THE FOREHEAD ANOTHER WAS STRUCK IN THE SHOULDER OVERALL MORE THAN 20 PEOPLE WERE REPORTED KILLED AND HUNDREDS OF OTHERS WERE INJURED IN THE CLASHES ACCORDING TO REPORTS SOON AFTERWARD THE POLICE AND MILITARY PRESENCE IN THE CAPITAL SEEMED TO SIMPLY MELT AWAY INTERIOR MINISTRY TROOPS SHIELDS AND STICKS IN HAND JUMPED ONTO PERSONNEL TRUCKS AND SPED OFF TO THE NORTH OF THE CITY IT WAS UNCLEAR WHETHER THEY WERE RETREATING OR HEADING TO DEFEND ANOTHER SITE MR YELTSIN HIMSELF WAS HUNKERED DOWN IN THE KREMLIN A FEW MILES FROM THE WHITE HOUSE PLANNING A COUNTERATTACK AIDES TO THE PRESIDENT SAID SPECIAL FORCES LOYAL TO THE PRESIDENT WERE ENTERING THE CAPITAL LAST NIGHT AND TAKING UP POSITIONS IN THE CENTER OF THE CITY ADDITIONAL TROOPS ALSO WERE SAID TO BE ON THE WAY IF SO THE UNITS REPRESENT TWO OF RUSSIA'S BESTEQUIPPED ELITE FORCES THAT WOULD RAISE THE LIKELIHOOD THAT MR YELTSIN COULD WIN A MILITARY VICTORY ASSUMING THE UNITS CARRY OUT HIS ORDERS BUT THE SPREAD OF ARMS IS SO WIDESPREAD IN THE CITY THAT IT ISN'T LIKELY TO BE A CLEAN SWIFT CONFRONTATION HEAVILY ARMED REBELS CONTROL SEVERAL KEY BUILDINGS WHILE HUNDREDS OF THEIR SUPPORTERS NEAR THE PARLIAMENT ARE BUSY PREPARING MOLOTOV COCKTAILS EVEN IF THE GOVERNMENT REGAINS CONTROL OF THE CITY THERE MIGHT BE SNIPER FIRE AND ISOLATED SKIRMISHES FOR DAYS AFTER WHILE MR YELTSIN WAS PLANNING HIS MOVES MR RUTSKOI WAS DIRECTING HIS OWN ARMED MEN FROM A COMMAND POST ON THE THIRD FLOOR OF THE WHITE HOUSE FOR MUCH OF THE NIGHT A PROCESSION OF OFFICIALS INCLUDING MR KHASBULATOV FILED IN AND OUT OF MR RUTSKOI'S OFFICE AS GUARDS WITH MACHINE GUNS STOOD OUTSIDE AN AFGHANISTAN WAR HERO THE 46YEAROLD MR RUTSKOI IS THOUGHT TO ENJOY SOME SUPPORT AMONG MILITARY OFFICERS BUT HIS POPULARITY IS LIMITED AMONG THE GENERAL POPULATION AND HE HAS LITTLE POLITICAL EXPERIENCE HE HAS SERVED AS VICE PRESIDENT UNDER MR YELTSIN SINCE THE PAIR WERE ELECTED TO THEIR RESPECTIVE POSTS IN 1991 AFTER THE FAILED COUP ATTEMPT IN MOSCOW THAT YEAR HOWEVER THE TWO FELL INTO OPPOSING POLITICAL CAMPS A VICTORY BY THE RUTSKOI CAMP WOULD MEAN A DRASTIC CHANGE IN RUSSIA'S FREEMARKET POLICIES THOUGH NEVER A COMMUNIST PARTY MEMBER MR RUTSKOI FAVORS A FAR MORE CAUTIOUS ECONOMIC PROGRAM IN WHICH THE STATE CONTINUES TO DOLE OUT SUBSIDIES TO KEEP PRICES LOW AND STATERUN FACTORIES AFLOAT HE ALSO IS HOSTILE TO POLICIES THAT CREATED A NEW CLASS OF WEALTH MR RUTSKOI'S ASCENSION WOULD ALSO DAMP AN ALREADY POOR INVESTMENT CLIMATE WHILE NOT OPPOSED TO FOREIGN INVESTMENT PER SE MR RUTSKOI HAS SIDED WITH RUSSIA'S ULTRANATIONALISTS WARNING THAT FOREIGN COMPANIES ARE ONLY INTERESTED IN RAPING RUSSIA FOR ITS NATURAL RESOURCES MR RUTSKOI HAS ALSO BEEN CRITICAL OF PRESIDENT CLINTON FOR SUPPORTING MR YELTSIN WHICH COULD MEAN ROCKY TIMES AHEAD FOR USRUSSIAN TIES MR RUTSKOI'S ALLY MR KHASBULATOV ISN'T THOUGHT TO HAVE MUCH OF A POLITICAL FUTURE THE SPEAKER OF PARLIAMENT HAS BEEN A FEISTY AND EFFECTIVE OPPOSITION LEADER BUT ALMOST NO ONE IN RUSSIA BELIEVES HE CAN EVER RISE ABOVE HIS CURRENT STATUS SHOULD MR YELTSIN PREVAIL HE MIGHT STILL BE ABLE TO ATTAIN WHAT HE WANTED WHEN HE FIRST THREW RUSSIA INTO TURMOIL BY DISSOLVING PARLIAMENT MR YELTSIN'S PLAN HAS BEEN TO DISBAND THE CURRENT LEGISLATURE AND CALL ELECTIONS FOR A NEW LEGISLATURE IN DECEMBER SIX MONTHS LATER RUSSIA WOULD HAVE NEW PRESIDENTIAL ELECTIONS PARLIAMENT OBJECTED TO THE PLANS AND ATTEMPTS TO BROKER A COMPROMISE ONE OPTION CALLED FOR SIMULTANEOUS ELECTIONS IN MARCH WERE CONTINUING UNTIL THE VIOLENCE ERUPTED A MILITARY ASSAULT COULD ONCE AND FOR ALL ELIMINATE THE CONSERVATIVE PARLIAMENT WITH WHICH MR YELTSIN HAS CLASHED FOR 18 MONTHS BUT HE WOULD PAY A PRICE YELTSIN WILL WIN SAID AN AIDE TO THE PRESIDENT BUT THAT DOESN'T MEAN HE WON'T BE IN TROUBLE FOREMOST MR YELTSIN WOULD OWE A DEBT TO THE MILITARY THAT COULD MEAN ENHANCED POLITICAL CLOUT FOR THE ARMY AND MONEY TO BUILD THE MILITARY BACK INTO A WORLDCLASS FIGHTING FORCE SOME ANALYSTS WONDER IF THE MILITARY'S PRICE FOR GETTING INVOLVED MIGHT EVEN BE MR YELTSIN'S RESIGNATION RUSSIA'S REGIONS ALSO WILL TRY TO EXTRACT CONCESSIONS FOR BACKING MR YELTSIN THAT COULD ENABLE THEM TO KEEP A LARGER PERCENTAGE OF TAX AND EXPORT REVENUE RATHER THAN REMITTING THEM TO THE CAPITAL BUT IF THINGS GO BADLY ANALYSTS WARN THE TURMOIL IN MOSCOW COULD SPILL INTO THE REGIONS ALREADY THE SPLIT BETWEEN MOSCOW'S EXECUTIVE AND LEGISLATURE IS MIRRORED IN CONFLICTS THROUGHOUT THE COUNTRY THEN PEOPLE WILL WONDER WHETHER THE RUSSIAN FEDERATION WILL BEGIN TO SPLINTER JUST AS THE SOVIET UNION DID TWO YEARS AGO WHAT HAS BEEN CLEAR DURING THE PAST TWO WEEKS IS THAT ONLY A FEW DEMONSTRATORS IN MOSCOW ACTUALLY WANTED VIOLENCE NOW THAT THERE HAS BEEN BLOODSHED IT ISN'T CLEAR WHERE IT WILL END ELISABETH RUBINFIEN AND CLAUDIA ROSETT CONTRIBUTED TO THIS ARTICLE 9310040074 931004 TECHNOLOGY BRIEF BORLAND INTERNATIONAL INC INSURERS SUE OVER COVERAGE IN LOTUS COPYRIGHT DISPUTE BORLAND INTERNATIONAL INC SAID ITS INSURERS HAVE BALKED AT PAYING THE COMPANY'S DEFENSE AND LIABILITY COSTS IN ITS LONGRUNNING COPYRIGHT FIGHT WITH LOTUS DEVELOPMENT CORP IN A LAWSUIT FILED IN STATE COURT IN SANTA CRUZ CALIF THREE INSURERS PART OF CHUBB CORP SAID THEY AREN'T RESPONSIBLE FOR BORLAND'S LEGAL COSTS ESTIMATED AT MORE THAN 5 MILLION BY A BORLAND ATTORNEY OR POSSIBLE LIABILITY WHICH LOTUS HAS SUGGESTED COULD TOP 100 MILLION IN THE LOTUS CASE BORLAND BASED IN SCOTTS VALLEY CALIF IS APPEALING A FEDERAL COURT DECISION THAT IT INFRINGED ON LOTUS'S SOFTWARE COPYRIGHTS DURING THE LATE 1980S BORLAND ATTORNEY STEVEN BROWER SAID THE COMPANY'S INSURANCE DOES COVER ITS LEGAL COSTS IN THE LOTUS CASE AND THAT BORLAND BELIEVES THE INSURERS SHOULD PAY AT LEAST PART OF ANY LIABILITY ASSESSED AGAINST BORLAND 9310040073 931004 TECHNOLOGY BRIEF CONTINUUM CO COMPUTER SERVICES CONCERN ACQUIRES VANTAGE COMPUTER CONTINUUM CO SAID IT ACQUIRED VANTAGE COMPUTER SYSTEMS INC FROM DST SYSTEMS INC AND ROBERT MALTEMPO VANTAGE'S CHIEF EXECUTIVE FOR FOUR MILLION NEWLY ISSUED CONTINUUM COMMON SHARES VALUED AT 69 MILLION BASED ON FRIDAY'S CLOSING PRICE CONTINUUM SAID IT ISSUED 29 MILLION SHARES AND WILL ISSUE 11 MILLION MORE SUBJECT TO SHAREHOLDER APPROVAL THE AUSTIN TEXAS COMPUTER SERVICES COMPANY SAID IT WILL HOLD A SHAREHOLDER MEETING WITHIN 90 DAYS TO APPROVE THE PLAN DST SYSTEMS OWNED 91 OF VANTAGE AND MR MALTEMPO OWNED 9 THE COMPANY SAID DST SYSTEMS A UNIT OF KANSAS CITY SOUTHERN INDUSTRIES INC WILL OWN ABOUT 194 OF CONTINUUM'S STOCK OUTSTANDING AFTER THE TRANSACTION MR MALTEMPO WHO WILL REMAIN WITH VANTAGE AND BE APPOINTED TO AN UNDETERMINED POSITION AT CONTINUUM WILL OWN ABOUT 19 OF CONTINUUM'S COMMON SHARES THE COMPANY SAID 9310040071 931004 REVIEW & OUTLOOK EDITORIAL THE AID THAT FAILS IF ECONOMIC REFORM FAILS IN THE FORMER SOVIET UNION MOST OF THE BLAME SHOULD FALL ON THEIR OWN GOVERNMENTS AND PEOPLE YET THE WESTERN ORGANIZATIONS THAT HAVE SALLIED FORTH TO OFFER ADVICE AREN'T HELPING MUCH EITHER NOT AT LEAST TO JUDGE FROM A RECENT VISIT TO THE THINK TANK OFFICE OF FORMER UKRAINIAN ECONOMIC REFORM CZAR VOLODYMYR LANOVIY REPORTS FROM PRICE WATERHOUSE AND THE US CHAMBER OF COMMERCE WERE ON HIS DESK HUGE PRIVATIZATION BINDERS SUPPLIED BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD OCCUPIED A SHELF A WORLD BANK REPORT ON THE UKRAINIAN ECONOMY COULD BE SEEN UNDER A STACK OF PAPERS NEAR THE PHONE HOLDING UP THE WORLD BANK DOCUMENT MR LANOVIY COMPLAINED NOBODY HAS TIME TO READ ANY OF THIS VICTOR PYNZENYK THE DEPUTY PREMIER WHO SUCCEEDED MR LANOVIY AS REFORM CZAR AND WHO RESIGNED LAST MONTH AFTER HIS PLANS WERE REJECTED DEPLORES THE WASTE OF MONEY CONSULTANTS GET THE MONEY BUT JUST GET IN OUR WAY SOME ADVISERS FROM WESTERN GOVERNMENTS I DON'T LET IN MY OFFICE THEY TALK FOR TWO OR THREE HOURS TELLING ME THINGS I ALREADY KNOW RESIDENT WESTERN EXPERTS DO SOMETIMES CORRECT OBVIOUS ERRORS THE UKRAINIANS AT ONE POINT THOUGHT ABOUT PRIVATIZING BEFORE CORPORATIZING UNTIL OUTSIDERS DEMONSTRATED THAT THIS WAS SILLY BUT MANY VISITING EXPERTS DON'T STAY IN TOWN LONG ENOUGH TO MASTER THE INTRICACIES OF THE LOCAL POWER STRUCTURES THESE RANGE FROM THE STATE PROPERTY FUND TO THE NATIONAL BANK TWO DIFFERENT ANTIMONOPOLY COMMITTEES AND FIVE COMMITTEES ON PRIVITIZATION AND ECONOMIC REFORM ADMITTEDLY TRYING TO SORT THROUGH THIS MAZE IS DAUNTING BUT IT IS DIFFICULT TO PROMOTE REFORM WITHOUT UNDERSTANDING THE BALANCE OF BUREAUCRATIC FORCES IN JUNE UKRAINE'S AMBASSADOR TO THE US OFFERED SOME RECOMMENDATIONS TO STROBE TALBOTT THE TOP WHITE HOUSE ADVISER ON AID TO THE EAST OLEH BILORUS SUGGESTED THAT ECONOMIC ASSISTANCE BE DRAWN UP JOINTLY BETWEEN AMERICANS AND UKRAINIANS OTHERWISE HIS LETTER IMPLIES UKRAINIAN OFFICIALS TEND TO IGNORE THE RECOMMENDATIONS THE WEST HAS TO DECIDE WHETHER TO INCLUDE ECONOMICALLY UNTUTORED UKRAINIANS AND COME UP WITH LESSTHANPERFECT PLANS OR PRODUCE PRISTINE PROGRAMS THAT WILL NEVER BE ADOPTED ORGANIZATIONS SUCH AS THE WORLD BANK AND THE IMF WORK WITH GOVERNMENTS COMPLAINS MR LANOVIY MAYBE IT IS COMFORTABLE FOR THEM TO DO SO FOR THEY GET SUPPORT FROM GOVERNMENTS BUT THE EFFECTIVENESS OF THIS WORK IS VERY LOW THE SUCCESS STORIES IN UKRAINE ARE INVARIABLY PRIVATE GEORGE SOROS'S RENAISSANCE FUND BRINGS MANY UKRAINIANS TO THE WEST FOR STUDY A HARVARD UNIVERSITY OFFSHOOT OFFERS A MUCHPRAISED CLEARING HOUSE FOR INFORMATION UKRAINIANS PRAISE WORK BY THE PEW FOUNDATION AND FIRST BOSTON THE MAIN EMPHASIS OF TECHNICAL ASSISTANCE IN UKRAINE AND OTHER REPUBLICS SHOULD BE ON CONTINUING EDUCATION IT'S LESS GLAMOROUS TO TRY TO TEACH PEOPLE BASIC ECONOMIC PRINCIPLES THAN TO PLAY VISITING MIRACLE WORKER BUT UNLIKE MOST OF THE MASTERMINDING EFFORTS TEACHING CAN DO SOME GOOD WHAT UKRAINIANS NEED MOST IS AN ELEVATION OF ECONOMIC LITERACY SO THEY CAN DO THINGS BETTER THEMSELVES 9310040070 931004 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO WALDBAUM UNIT IS ORDERED TO PAY FOR OVERTIME WORK A FEDERAL COURT IN NEW YORK AWARDED 262 EMPLOYEES OF WALDBAUM INC A SUBSIDIARY OF GREAT ATLANTIC & PACIFIC TEA CO OVERTIME PAY AFTER DETERMINING THAT THE GROCERY CHAIN UNINTENTIONALLY BUT IMPROPERLY VIOLATED FEDERAL RECORDKEEPING AND OVERTIME LAWS JUDGE CHARLES H TENNEY ALSO PERMANENTLY ENJOINED THE GROCERY COMPANY FROM FURTHER VIOLATIONS THE VIOLATIONS AT ISSUE OCCURRED BETWEEN MAY 1986 AND OCTOBER 1989 IN 20 STORES IN METROPOLITAN NEW YORK JUDGE TENNEY ALSO INSTRUCTED THE LABOR DEPARTMENT WHICH BROUGHT THE SUIT TO MAKE A FINAL CALCULATION OF BACK WAGES A FIGURE THE GOVERNMENT HAS ESTIMATED TO BE ABOUT 15 MILLION IN MONTVALE NJ AN A&P SPOKESMAN SAID HE HADN'T SEEN THE DECISION AND COULDN'T COMMENT 9310040069 931004 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CORRPRO COMPANIES INC AN INITIAL OFFERING OF 18 MILLION COMMON SHARES AT 11 EACH VIA NATWEST SECURITIES LIMITED EVERGREEN MEDIA CORP AN OFFERING OF 13 MILLION SHARES OF CONVERTIBLE EXCHANGEABLE PREFERRED STOCK AT 65 MILLION VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SMITH BARNEY SHEARSON INC NORTEK INC AN OFFERING OF UP TO 190 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA BEAR STEARNS & CO AND CHASE SECURITIES INC PRATT HOTEL CORP AN OFFERING OF 2925 MILLION IN DEBT SECURITIES SIMULA INC AN OFFERING OF 12 MILLION OF FIVEYEAR NONCALLABLE SENIOR SUBORDINATED NOTES GTE NORTH INC A UNIT OF GTE CORP AN OFFERING OF 250 MILLION OF SERIES A DEBENTURES DUE 1999 TEXAS UTILITIES ELECTRIC CO A UNIT OF TEXAS UTILITIES CO AN OFFERING OF 75 MILLION OF CUMULATIVE PREFERRED STOCK 9310040068 931004 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT DELPHI FINANCIAL GROUP INC 25 MILLION CLASS A COMMON SHARES PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 19931622 IS BACKED BY 30YEAR 7 MORTGAGE SECURITIES THE SECURITIES ARE BACKED BY THE AGENCY'S GOLD MAC 155 THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION113 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993214 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS DEERE & CO 6002 MILLION OF AGRICULTURAL EQUIPMENT LOAN ASSETBACKED CERTIFICATES PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE ISSUED THROUGH JOHN DEERE OWNER TRUST 1993B THE 2416 MILLION IN CLASS A1 FLOATINGRATE CERTIFICATES WERE PRICED AT PAR TO FLOAT 625 BASIS POINTS BELOW THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES WITH AN AVERAGE LIFE OF 038 MONTH WERE RATED SINGLEA1PLUS BY S&P P1 BY MOODY'S F1 BY FITCH INVESTORS SERVICE AND D1 BY DUFF & PHELPS CO THE 3346 MILLION IN CLASS A2 FIXEDRATE CERTIFICATES WERE PRICED AS 41S AT 9997 TO YIELD 41536 A 40BASISPOINT SPREAD ABOVE THE TREASURY'S 4125 NOTES OF JUNE 1995 THE CERTIFICATES WITH AN AVERAGE LIFE OF 171 YEARS WERE RATED TRIPLEA BY THE FOUR RATINGS AGENCIES PRICING DETAILS ON 24 MILLION OF SUBORDINATE CLASS B CERTIFICATES WEREN'T PROVIDED THE CLASS HAS AN AVERAGE LIFE OF 25 YEARS IN ADDITION TO THE SUBORDINATE CLASS CREDIT ENHANCEMENT CONSISTED OF A CASH RESERVE ACCOUNT AEGON NV NETHERLANDS AND US 350 MILLION DUTCH GUILDERS OF 5875 EUROBONDS DUE OCT 29 1998 AT ISSUE PRICE 10055 VIA RABOBANK NEDERLAND REOFFERED AT 998 TO YIELD 5922 A MARGIN OF ABOUT 275 BASIS POINTS OVER COMPARABLE DUTCH GOVERNMENT STATE LOAN FEES ONE ASAHIPEN CORP JAPAN 80 MILLION SWISS FRANCS OF 05 NOTES WITH WARRANTS DUE OCT 21 1997 AT ISSUE PRICE 100 VIA CREDIT SUISSE NOTES GUARANTEED BY SANWA BANK CARRY 50 WARRANTS APIECE FEES 1625 EUROFIMA SUPRANATIONAL 150 BILLION LIRE OF 8375 EUROBONDS DUE OCT 27 2003 AT ISSUE PRICE 101725 VIA BANCA NAZIONALE DEL LAVORO AT COMANAGERS' BREAKEVEN PRICE 9985 BONDS YIELD 8398 FEES 1875 EUROFIMA SUPRANATIONAL 150 BILLION LIRE FLOATINGRATE NOTES DUE OCTOBER 2003 VIA BANCA NAZIONALE DEL LAVORO INTEREST PAYS QUARTERLY AT 375 POINTS BELOW LIBOR FEES 0325 HAMMERSON PROPERTY INVESTMENT & DEVELOPMENT CORP PLC UK 100 MILLION OF 7875 EUROBONDS DUE OCT 27 2003 PRICED AT 97216 VIA NATWEST CAPITAL MARKETS AND BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 95691 TO YIELD 8358 SEMIANNUALLY 8533 ANNUALLY FEES TWO NATIONAL & PROVINCIAL BUILDING SOCIETY UK 100 MILLION OF FLOATINGRATE EURONOTES DUE OCT 15 1998 AT ISSUE AND RECOMMENDED REOFFER PRICE 998 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST PAYS QUARTERLY AND FLOATS AT 15 BASIS POINTS OVER LIBOR CALL OPTION ON OCTOBER 1997 AT PAR 9310040067 931004 IBM MAY FACE NEW LOOK INTO 1956 ANTITRUST ORDER WASHINGTON INTERNATIONAL BUSINESS MACHINES CORP ISN'T THE DOMINANT FORCE OF THE COMPUTER INDUSTRY ANYMORE BUT IT MAY FACE AN ANTITRUST INVESTIGATION NONETHELESS THE JUSTICE DEPARTMENT IS STUDYING WHETHER THE ARMONK NY COMPANY IS VIOLATING A 1956 COURT DECREE THAT SETTLED AN ANTITRUST SUIT AND BARRED THE COMPANY FROM GIVING FINANCIAL ASSISTANCE TO ITS INDEPENDENT DATA PROCESSING SUBSIDIARY A GROUP OF SMALL DATA PROCESSING COMPANIES AIRED THEIR COMPLAINTS TO ANTITRUST CHIEF ANNE BINGAMAN THE DEPARTMENT WILL REVIEW THE MATTER A SPOKESWOMAN SAID IN 1991 IBM FORMED INTERNATIONAL SYSTEMS SOLUTIONS CORP BASED IN WHITE PLAINS NY AND MOVED ITS DATA PROCESSING UNIT THERE THE DATA PROCESSING COMPANIES ACCUSE IBM OF GIVING ITS SUBSIDIARY MARKETING HELP AND EQUIPMENT DISCOUNTS GIVING IT AN UNFAIR ADVANTAGE OVER COMPETITORS AN IBM SPOKESMAN YESTERDAY SAID THE COMPUTER MAKER HAS NOT GIVEN THE UNIT FINANCIAL ASSISTANCE WE ARE ABSOLUTELY CONFIDENT THAT WE ARE IN COMPLIANCE WITH THE CONSENT DECREE AND CAN DEMONSTRATE COMPLIANCE TO THE JUSTICE DEPARTMENT SHOULD THEY INQUIRE IBM SPOKESMAN ROGER BOLTON SAID ADDING IBM HAS NOT BEEN CONTACTED BY FEDERAL OFFICIALS ABOUT THE COMPLAINTS 9310040066 931004 BUSINESS BRIEF FORTIS INC ELECTRICITY PROVIDER MAY BUY NEWFOUNDLAND PUBLIC UTILITY THE GOVERNMENT OF NEWFOUNDLAND AND LABRADOR SAID IT OPENED TALKS THAT COULD LEAD TO ACQUISITION OF THE PROVINCEOWNED ELECTRIC UTILITY BY FORTIS INC A ST JOHN'S NEWFOUNDLAND HOLDING COMPANY THE GOVERNMENT UTILITY IS THE PRINCIPAL PRODUCER OF POWER IN THE PROVINCE FORTIS OWNS A SUBSIDIARY THAT IS THE MAIN DISTRIBUTOR OF ELECTRICITY THE GOVERNMENT LEFT OPEN THE POSSIBILITY OF PRIVATIZING ITS POWER COMPANY WITHOUT AN ACQUISITION BY FORTIS BUT STANLEY MARSHALL A FORTIS VICE PRESIDENT SAID AN ACQUISITION WAS VERY LIKELY BECAUSE COMBINING THE GENERATING AND DISTRIBUTING COMPANIES MADE ECONOMIC SENSE HE SAID FORTIS WOULD HAVE TO ISSUE MORE SHARES TO FINANCE THE PURCHASE FORTIS CLOSED FRIDAY AT 27 CANADIAN DOLLARS US2024 UP 125 CANADIAN CENTS 937 US CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE MR MARSHALL SAID ASSETS OF THE PROVINCIAL UTILITY ARE VALUED AT ABOUT C12 BILLION CANADIAN DOLLARS US899 MILLION EXCLUDING ITS BIG CHURCHILL FALLS POWER STATION WHICH MOSTLY PROVIDES POWER TO NEIGHBORING QUEBEC AND ISN'T FOR SALE 9310040065 931004 MARKETING BRIEF CAROLCO PICTURES INC DEALDINE TO ACCEPT TERMS OF RESTRUCTURING EXTENDED CAROLCO PICTURES INC EXTENDED THE DEADLINE FOR BONDHOLDERS TO ACCEPT THE TERMS OF ITS PROPOSED FINANCIAL RESTRUCTURING BY ONE WEEK TO THURSDAY IN ANNOUNCING THE EXTENSION CAROLCO SAID FRIDAY THAT IT NEEDED ABOUT 15 MORE OF ITS BONDHOLDERS TO TENDER THEIR NOTES FOR EXCHANGE TO MEET THE PERCENTAGES SPELLED OUT PREVIOUSLY BY THE COMPANY IN ADDITION THE MOTION PICTURE COMPANY SAID IT HAD OBTAINED THE NECESSARY APPROVALS FROM BONDHOLDERS AND OTHER INTERESTS TO FILE A PREPACKAGED BANKRUPTCY REORGANIZATION IF IT FAILS TO REACH THE ACCEPTANCE THRESHOLDS ESTABLISHED FOR ITS OVERALL REORGANIZATION PLAN 9310040064 931004 BUSINESS BRIEF BURLINGTON NORTHERN INC STRIKE BY MAINTENANCE UNION IS CALLED AGAINST RAILROAD UNIONIZED RAILWAY MAINTENANCE WORKERS FOR BURLINGTON NORTHERN RAILROAD WENT ON STRIKE YESTERDAY ALLEGING COMPANY OFFICIALS HAVE REFUSED TO LIVE UP TO PAY PROVISIONS OF A CONGRESSIONALLY IMPOSED CONTRACT SEVERAL HUNDRED MEMBERS OF THE BROTHERHOOD OF MAINTENANCE OF WAY EMPLOYEES WERE SETTING UP PICKET LINES FROM DENVER TO HOUSTON LAST NIGHT ACCORDING TO A UNION SPOKESMAN THEIR ABILITY TO HALT TRAFFIC DEPENDED IN PART ON WHETHER OTHER UNIONS WOULD HONOR THE PICKET LINES BURLINGTON NORTHERN INC OFFICIALS COULD NOT BE REACHED FOR COMMENT THE UNION SPOKESMAN SAID THE UNION EXPECTED THE COMPANY TO SEEK A RESTRAINING ORDER THAT WOULD REQUIRE THEM TO RETURN TO THEIR JOBS THE UNION'S DISPUTE DATES TO JULY 1991 THE UNION SPOKESMAN SAID 9310040063 931004 TECHNOLOGY REJECTION OF DRUG INDUSTRY PRICING PLAN MAY HURT EFFORTS TO GET VOLUNTARY CURBS THIS ARTICLE WAS PREPARED BY HILARY STOUT AND LUCINDA HARPER IN WASHINGTON AND ELYSE TANOUYE IN NEW YORK THE JUSTICE DEPARTMENT'S REJECTION OF A PHARMACEUTICAL INDUSTRY PLAN TO HOLD DRUGPRICE INCREASES TO THE RATE OF INFLATION COULD COMPLICATE THE WHITE HOUSE'S EFFORTS TO PERSUADE DRUG COMPANIES TO CURB PRICES VOLUNTARILY BECAUSE PRESIDENT CLINTON DECIDED AGAINST INCLUDING EXPLICIT GOVERNMENT CONTROLS ON DRUG PRICES AND OTHER MEDICAL SERVICES IN HIS HEALTHCARE PLAN THE PROPOSAL'S SUCCESS DEPENDS ON THE MEDICAL INDUSTRY'S VOLUNTARY RESTRAINT OF PRICES BUT A DRUG INDUSTRY PROPOSAL TO DO JUST THAT DEVISED IN MARCH BY THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION A WASHINGTON TRADE GROUP WAS DECLARED ANTICOMPETITIVE BY THE JUSTICE DEPARTMENT FRIDAY THE ASSOCIATION'S PLAN CAME IN RESPONSE TO THE PUBLIC ATTACKS THE INDUSTRY HAD RECEIVED FROM THE CLINTON ADMINISTRATION FOR THE SPIRALING COST OF PRESCRIPTION DRUGS THE INDUSTRY HAD HOPED TO RECEIVE CLEARANCE FOR PHARMACEUTICAL EXECUTIVES TO COLLECTIVELY DEVISE INDUSTRYWIDE PRICE RESTRAINTS AND ENFORCEMENT MECHANISMS THE INDUSTRY HAD HOPED SUCH SELFREGULATING POLICIES WOULD CONVINCE THE CLINTON ADMINISTRATION THAT GOVERNMENTIMPOSED PRICE CONTROLS WERE UNNECESSARY THE GROUP'S ORIGINAL PROPOSAL WOULD HAVE ALLOWED DRUG MAKERS TO DISCUSS PRICING POLICY AMONG THEMSELVES AND WOULD HAVE GENERALLY LIMITED INCREASES IN PRESCRIPTIONDRUG PRICES TO RISES IN THE CONSUMER PRICE INDEX THE MOVE WOULD HAVE HELPED TO CURB DRUGPRICE INCREASES WHICH FOR YEARS FAR OUTPACED GENERAL INFLATION BUT IT WOULD HAVE ALSO VIOLATED ANTITRUST LAWS AGAINST PRICEFIXING THE JUSTICE DEPARTMENT SAID AGREEMENTS AMONG COMPETITORS INCLUDING AGREEMENTS SETTING MAXIMUM PRICES THAT INTERFERE WITH THE ABILITY OF EACH FIRM IN A MARKET TO DETERMINE ITS OWN PRICES HAVE LONG BEEN ILLEGAL UNDER THE ANTITRUST LAWS ANNE BINGAMAN HEAD OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION SAID IN A STATEMENT MAXIMUM PRICE AGREEMENTS OFTEN BECOME AGREEMENTS ON ACTUAL PRICE INCREASES DESPITE THE RULING WHITE HOUSE HEALTH OFFICIALS YESTERDAY INSISTED THAT IT WON'T DERAIL THEIR EFFORTS TO CONVINCE THE INDUSTRY TO RESTRAIN ITS PRICES ONE OFFICIAL CALLED THE RULING A TECHNICAL PROBLEM AND SAID THE JUSTICE DEPARTMENT WOULD CONTINUE TO WORK WITH DRUG MANUFACTURERS TO COME UP WITH A LEGAL WAY TO HOLD DOWN PRICES ANOTHER OFFICIAL INSISTED THE RULING DOES NOTHING TO PREVENT INDIVIDUAL COMPANIES FROM DECIDING TO CURB PRICE INCREASES ON THEIR OWN INDEED SEVERAL PHARMACEUTICAL CORPORATIONS ARE ALREADY VOLUNTARILY HOLDING PRICES TO INFLATION HE SAID A SPOKESMAN FOR THE PHARMACEUTICAL ASSOCIATION YESTERDAY SAID THE ORGANIZATION COULDN'T COMMENT ON THE DECISION BECAUSE IT HADN'T HAD TIME TO REVIEW IT BUT HE NOTED MARKET FORCES AND VOLUNTARY PRICE RESTRAINT BY INDIVIDUAL COMPANIES HAVE ALREADY WORKED TO REDUCE DRUG PRICE INFLATION TO UNDER 4 THIS YEAR COMPARED WITH 94 IN 1991 THAT IS PARTLY A RESULT OF PLEDGES EARLIER THIS YEAR BY 17 COMPANIES REPRESENTING TWOTHIRDS OF THE US PHARMACEUTICAL MARKET TO KEEP PRICE INCREASES AT OR BELOW THE GENERAL INFLATION RATE HE SAID I DON'T THINK IT'S A MAJOR SETBACK SAID RONALD NORDMANN A DRUG INDUSTRY ANALYST AT PAINEWEBBER NOTING THAT SOME DRUG COMPANIES HAVEN'T TAKEN THE PLEDGE TO VOLUNTARILY HOLD DOWN PRICES HE ADDED IT WOULD HAVE BEEN NICE FOR THE INDUSTRY TO SIT DOWN AND POLICE ITS OWN HOUSE SEN DAVID PRYOR D ARK HAS PROPOSED THAT INDIVIDUAL COMPANIES SIGN A CONTRACT WITH THE JUSTICE DEPARTMENT AGREEING TO HOLD PRICE INCREASES TO THE GENERAL INFLATION RATE A SIMILAR PROPOSAL HAS BEEN MADE BY MERCK & CO WHICH SENT SUCH A CONTRACT TO THE CLINTON ADMINISTRATION BUT HASN'T HEARD BACK A MERCK SPOKESMAN SAID WE THINK OTHER COMPANIES SHOULD MAKE THE SAME OFFER HE SAID THE JUSTICE DEPARTMENT'S REJECION'S PRICING PLAN ISN'T SURPRISING MS BINGAMAN SAID IN HER CONFIRMATION HEARINGS AND MANY TIMES SINCE THAT SHE IS GENERALLY OPPOSED TO GRANTING ANTITRUST EXEMPTIONS THE WHITE HOUSE HEALTH OFFICIALS SAID THEY WERE CAREFUL NOT TO INTERFERE WITH THE DEPARTMENT'S REVIEW OF THE PHARMACEUTICAL MANUFACTURERS' PETITION AND THAT THEY DIDN'T KNOW OF THE DEPARTMENT'S RULING UNTIL SHORTLY BEFORE IT WAS ANNOUNCED FINDING A WAY TO PUT SOME RESTRAINT ON DRUG PRICES IS A BIG CONCERN AND THE WHITE HOUSE STRESSED THAT IT WOULD CONTINUE TO LOOK FOR WAYS TO GET PRICES IN CHECK WE'RE CONTINUING TO WORK WITH THE PHARMACEUTICAL MANUFACTURERS TO MAKE SURE THEIR PRICES ARE HELD DOWN BECAUSE WE BELIEVE IT IS NOT FAIR THAT AMERICANS ARE CHARGED THREE TIMES THE PRICE FOR PHARMACEUTICALS THAN PEOPLE IN OTHER COUNTRIES SAID ROBERT BOORSTIN A WHITE HOUSE SPOKESMAN THE JUSTICE DEPARTMENT'S ACTION WAS MADE UNDER ITS BUSINESS REVIEW PROCEDURE IN WHICH A PROPOSED ACTION IS SUBMITTED TO THE ANTITRUST DIVISION THE DIVISION THEN ISSUES A STATEMENT ON WHETHER IT WILL CHALLENGE THE ACTION UNDER THE ANTITRUST LAWS 9310040061 931004 BUSINESS BRIEF FINGERMATRIX INC CHIEF OFFERS TO WITHDRAW CONTESTED STOCK TRANSACTION FINGERMATRIX INC NORTH WHITE PLAINS NY SAID ITS FOUNDER AND CHIEF EXECUTIVE OFFICER MICHAEL SCHILLER OFFERED TO RESCIND A STOCK TRANSACTION THAT HAS BEEN CHALLENGED IN COURT UNDER THE TRANSACTION IN MARCH MR SCHILLER WAS VOTED 2250000 SHARES BY THE BOARD AT TWO CENTS A SHARE WELL BELOW THE MARKET BID PRICE OF 38 CENTS A SHARE AT THE TIME THE MOVE IN THE MIDST OF SHAREHOLDER DEMANDS FOR MR SCHILLER'S RESIGNATION GAVE HIM WORKING CONTROL OF THE COMPANY AND WAS CONTESTED BY THE SHAREHOLDERS IN FEDERAL COURT AN ATTORNEY REPRESENTING THE SHAREHOLDERS SAID HE HADN'T HEARD OF THE NEW FINGERMATRIX AGREEMENT DIRECTLY IT'S A GOOD IDEA SAID PHILLIP A GERACI OF NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER WE'D LIKE TO SEE SOME PROOF OF IT BUT HE ADDED THAT ANNULLING THE DEAL WOULDN'T MOLLIFY DEMANDS FOR MR SCHILLER'S RESIGNATION FINGERMATRIX WHICH DEVELOPS FINGERPRINTRECOGNITION DEVICES THIS MONTH FILED A CHAPTER 11 BANKRUPTCYLAW PETITION IN WHITE PLAINS NY DECLARING ITSELF UNABLE TO SERVICE ITS 14 MILLION IN DEBT 9310040060 931004 BUSINESS BRIEF CRI LIQUIDATING REIT INC CRIIMI MAE TO REDUCE STAKE THROUGH SECONDARY OFFERING CRI LIQUIDATING REIT INC SAID ITS LARGEST SHAREHOLDER PLANS TO EXPAND ITS PLAN TO REDUCE ITS STAKE IN THE COMPANY THROUGH A SECONDARY OFFERING IN AN AMENDED FILING WITH THE SECURITIES AND EXCHANGE COMMISSION CRI SAID CRIIMI MAE INC WHICH OWNS 67 OF THE ROCKVILLE MD LIQUIDATING REAL ESTATE INVESTMENT TRUST IS SEEKING TO SELL 3450000 SHARES OR NEARLY 18 OF ITS STAKE AN ADDITIONAL 450000 SHARES FROM THE THREE MILLION ANNOUNCED A YEAR AGO AFTER THE SALE CRIIMI MAE WOULD HAVE A STAKE OF ABOUT 56 IN THE LIQUIDATING REAL ESTATE INVESTMENT TRUST AT CURRENT MARKET PRICES THE SHARES BEING SOLD WOULD BE VALUED AT ABOUT 323 MILLION MERRILL LYNCH & CO IS THE LEAD UNDERWRITER 9310040059 931004 THREE WEEKS TO BANKRUPTCY BY ELAINE LANZENDORFER THE PRESIDENT AND OTHER MEMBERS OF HIS ADMINISTRATION HAVE BEEN TRAVELING THE COUNTRY LISTENING TO HEALTH CARE WOES AND PROMISING RELIEF BUT REFORM WILL COME TOO LATE FOR ME MY BUSINESS WILL ALREADY BE OUT OF BUSINESS DONE IN BY THE HEALTH PREMIUMS WE'RE REQUIRED TO PAY UNDER THE COAL INDUSTRY RETIREE HEALTH BENEFITS ACT A MEASURE THE ADMINISTRATION ENDORSES DEVELOPED BY SEN JOHN ROCKEFELLER D WVA AND PASSED AS PART OF THE 1992 ENERGY BILL THIS LEGISLATION WITH ITS CONTROVERSIAL REACHBACK TAX WILL FORCE LANZENDORFER TRUCKING INC INTO BANKRUPTCY ON OCT 25 THE DAY THE FIRST PREMIUMS ARE DUE AND OUR CASE IS FAR FROM UNIQUE BACK WHEN A TRUCKING COMPANY NEEDED A UNION CARD TO HAUL UNION COAL INTO THE POWER PLANTS LANZENDORFER TRUCKING JOINED THE UNION IN 1987 WHEN WE WITHDREW FROM THE UNION WE PAID OUR WITHDRAWAL PENALTY TO THE UNITED MINE WORKERS OF AMERICA FUNDS AND THOUGHT WE HAD SATISFIED ALL CURRENT AND FUTURE OBLIGATIONS WE DIDN'T KNOW THAT THE RULES OF THE GAME WOULD CHANGE SIX YEARS LATER ABOUT THE END OF FEBRUARY OF THIS YEAR WE LEARNED THAT EVEN THOUGH WE HAD PAID THE WITHDRAWAL PENALTY WE WOULD NOW BE LIABLE FOR A REACHBACK TAX TO PAY FOR BENEFITS FOR SEVEN FORMER EMPLOYEES THE TOTAL FOR THE FIRST 12 MONTHS WILL AMOUNT TO ROUGHLY 20 OF OUR PAYROLL ALTHOUGH ONCE WE HAD SEVEN TRIAXLE COALHAULING TRUCKS WE NOW HAVE TWO AND WORK IS SPORADIC THERE'S ONLY ONE UNION MINE NOW OPERATING IN CAMBRIA COUNTY PA AND SOME SAY IT'S SLATED TO CLOSE SOON OUR TOTAL PAYROLL LAST YEAR WAS 124000 AND THE HIGHEST SALARY PAID WAS 25000 PERHAPS YOU THINK YOU WOULD NOT BOTHER TO RUN A COMPANY FOR SUCH LITTLE MONEY BUT IF YOU LIVED IN CAMBRIA COUNTY YOU WOULD WE CANNOT AFFORD TO PAY THIS TAX AS A COAL MINER'S DAUGHTER I KNOW WHAT THESE BENEFITS MEAN TO RETIRED MINERS AND HOW HARD THEY WORKED FOR THEM BUT BANKRUPTING OUR BUSINESS WON'T HELP PAY FOR THEIR MEDICAL CARE ESPECIALLY WHEN OUR CONTRIBUTION ISN'T EVEN NECESSARY THE REACHBACK TAX WAS SUPPOSED TO MAKE UP FOR A PROJECTED SHORTFALL IN THE FUNDS THAT PROVIDE HEALTH CARE BENEFITS TO UNITED MINEWORKERS OF AMERICA RETIREES BUT AS I LEARNED WHEN I RECENTLY TESTIFIED BEFORE CONGRESS ABOUT THE IMPACT OF THE TAX ON MY BUSINESS THE SHORTFALL NEVER MATERIALIZED IN APRIL 1992 THE UMW FUNDS ADOPTED MEASURES INCLUDING ENROLLING ELIGIBLE RETIREES IN MEDICARE AND REIMBURSING DOCTORS AT MEDICARE RATES THAT DRAMATICALLY DECREASED THE COST OF PROVIDING CARE TO THE MINERS IT NOW COSTS FAR LESS TO TAKE CARE OF THEM THAN WAS ORIGINALLY PROJECTED FOR THE FISCAL YEAR ENDED JUNE 30 1993 THE ACTUAL COSTS WERE 115 MILLION LESS THAN THE BUSHAPPOINTED COAL COMMISSION EXPECTED AND 66 MILLION LESS THAN THE CONGRESSIONAL BUDGET OFFICE PROJECTED THE COSTS WERE ACTUALLY DROPPING WHILE THE STATUTE WAS BEING DEVELOPED BUT THAT DOESN'T HELP ME OR MY FAMILY'S BUSINESS WE ARE NOT ALONE IN OUR PREDICAMENT COMPANIES THAT HAVE BEEN OUT OF THE COAL BUSINESS FOR DECADES OR WERE NEVER IN IT AT ALL ARE BEING HARD HIT TO PAY FOR THIS REACHBACK TAX WE'RE A DIVERSE LOT ALL UNITED BY A SENSE OF IMPENDING DOOM PRINCETON MINING CO OF TERRE HAUTE IND NOW PRODUCES POPCORN IT HAS BEEN OUT OF MINING FOR NEARLY THREE DECADES YET IT WILL OWE APPROXIMATELY 164000 ANNUALLY IN REACHBACK TAXES TEMPLETON COAL ALSO OF TERRE HAUTE STOPPED MINING COAL ON MAY 28 1954 ITS REACHBACK PREMIUMS WILL BE 92000 A YEAR INDUSTRIAL MAINTENANCE & FABRICATING OF LYNCHBURG VA WAS NEVER IN MINING AT ALL BUT ITS MAJORITY SHAREHOLDER A COMPANY THAT STOPPED MINING NEARLY 10 YEARS AGO EXPECTS A MINIMUM ANNUAL ASSESSMENT OF 264000 IN REACHBACK FEES WHEN IT GOES UNDER SO WILL INDUSTRIAL MAINTENANCE SAME STORY WITH COGAR MINE SUPPLY OF BECKLEY WVA IN PUEBLO COLO REACHBACK LIABILITY THREATENS TO SCUTTLE A PROMISING MERGER BETWEEN OREGON STEEL AND THE BANKRUPT CF&I STEEL CORP AND ON AND ON COAL TRUCKING IS HARD AND MONOTONOUS WORK TO DRIVE THE SAME ROUTE FIVE TIMES A DAY FOR YEARS ON END TAKES A TOLL ON THE BODY AND MIND FROM THE DAYS THAT MY FATHERINLAW STARTED HAULING IN 1916 WITH TWO MULES AND A WAGON THE LANZENDORFERS HAVE WORKED SIDE BY SIDE TO KEEP THE COMPANY GOING ALL WE ARE ASKING FOR IS THE RIGHT TO CONDUCT BUSINESS AS WE HAVE DONE FOR 77 YEARS CAMBRIA COUNTY HAS THE DUBIOUS DISTINCTION OF BEING ONE OF THE POOREST COUNTIES IN PENNSYLVANIA WE HAVE GROWN USED TO EATING BAD NEWS FOR BREAKFAST BUT WE DOUBT THE POOR CONDITIONS WE WITNESS DAILY HAVE PENETRATED THE BELTWAY OTHERWISE HOW COULD THE ADMINISTRATION DISMISS OUR PLIGHT AND CALL THE LAW A REASONABLE SOLUTION TO A DIFFICULT PROBLEM WHY WON'T IT EVEN CONSIDER A MORATORIUM ON PREMIUMS WHILE CONGRESS REVIEWS THE TRUE COST OF RUNNING THE UMW FUNDS AND WHY IS SEN ROCKEFELLER SO KEEN TO PROTECT HIS UMW CONSTITUENTS FROM THE COSTSHARING REFORMS HE AND PRESIDENT CLINTON RECOMMEND FOR THE REST OF THE COUNTRY MRS LANZENDORFER IS THE BOOKKEEPER OF LANZENDORFER TRUCKING INC A COAL TRUCKING BUSINESS IN CAMBRIA COUNTRY PA 9310040057 931004 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ARKANSAS POWER & LIGHT CO 155 MILLION OF 10YEAR DEBT NONCALLABLE FOR FIVE YEARS VIA COMPETITIVE BID FROM THIS UNIT OF ENTERGY CORP NEW YORK TELEPHONE CO 150 MILLION OF 10YEAR DEBT AND 250 MILLION OF 30YEAR DEBT NONCALLABLE FOR 20YEARS BOTH VIA COMPETITIVE BID FROM THIS UNIT OF NYNEX CORP CONNECTICUT LIGHT & POWER CO 80 MILLION OF SINKING FUND PREFERRED VIA COMPETITIVE BID FROM THIS UNIT OF NORTHEAST UTILITIES ALLEGHENY POWER SYSTEM 12 MILLION SHARES VIA GOLDMAN SACHS & CO ATCHISON CASTING CORP INITIAL 22 MILLION SHARES VIA PRUDENTIAL SECURITIES INC BOOKSAMILLION INC 13 MILLION SHARES VIA PRUDENTIAL DELPHI FINANCIAL 85 MILLION OF 10YEAR SENIOR NOTES VIA MERRILL LYNCH & CO DETROIT DIESEL CORP INITIAL 48 MILLION SHARES VIA MERRILL LYNCH GARTNER GROUP INITIAL 23 MILLION CLASS A SHARES VIA MORGAN STANLEY & CO GENERAL PUBLIC UTILITIES 35 MILLION SHARES VIA MERRILL LYNCH HERBALIFE INTERNATIONAL FIVE MILLION SHARES VIA SALOMON BROTHERS INC HERZFELD CARIBBEAN BASIN FUND INITIAL TWO MILLION SHARES VIA THOMAS HERZFELD & CO IMC FERTILIZER GROUP 28 MILLION SHARES VIA LEHMAN BROTHERS INTERNATIONAL CABLETEL INC 10 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP LAFARGE CORP FIVE MILLION SHARES VIA MORGAN STANLEY MARVEL HOLDINGS 150 MILLION OF FIVEYEAR SENIOR DISCOUNT NOTES VIA BEAR STEARNS & CO NATIONAL PICTURE & FRAME 23 MILLION SHARES VIA WILLIAM BLAIR OM GROUP 11 MILLION SHARES VIA LEHMAN BROTHERS SOMERSET SAVINGS BANK 112 MILLION SHARES VIA LEGG MASON WOOD WALKER INC TUCKER PROPERTIES CORP INITIAL 10 MILLION SHARES VIA KIDDER PEABODY & CO URBAN SHOPPING CENTERS INC INITIAL 11 MILLION SHARES VIA MERRILL LYNCH WERNER ENTERPRISES THREE MILLION SHARES VIA ALEX BROWN & SONS PORT AUTHORITY OF NEW YORK & NEW JERSEY 3379 MILLION OF VARIOUS CONSOLIDATED REVENUE BONDS INCLUDING 2379 MILLION OF EIGHTYEIGHTH SERIES BONDS AND 100 MILLION EIGHTYNINTH SERIES BONDS VIA COMPETITIVE BID MARYLAND 283 MILLION OF CAPITAL IMPROVEMENT AND REFUNDING GENERAL OBLIGATION BONDS VIA COMPETITIVE BID NORTH CAROLINA 1932 MILLION OF VARIOUS SERIES 1993 REFUNDING GENERAL OBLIGATION BONDS VIA COMPETITIVE BID CALIFORNIA PUBLIC WORKS BOARD 330 MILLION OF LEASE REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP CONNECTICUT 240 MILLION OF SERIES 1993E GENERAL OBLIGATION BONDS VIA A JP MORGAN SECURITIES INC GROUP CONNECTICUT HEALTH & EDUCATION FACILITIES AUTHORITY 108 MILLION REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP EASTERN CONNECTICUT RESOURCE RECOVERY AUTHORITY 112 MILLION SOLIDWASTE REVENUE BONDS VIA AN ALEX BROWN GROUP LOUISIANA PUBLIC FACILITIES AUTHORITY 130 MILLION OF REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP NEW JERSEY HOUSING & MORTGAGE FINANCE AGENCY 175 MILLION HOUSING REVENUE BONDS VIA A BEAR STEARNS GROUP NEW YORK CITY 600 MILLION OF GENERAL OBLIGATION BONDS VIA A LEHMAN BROTHERS GROUP 9310040055 931004 BUSINESS BRIEF PARKOHIO INDUSTRIES INC ACQUISITIONS COULD BOOST 1994 REVENUE BY 50 MILLION PARKOHIO INDUSTRIES INC CLEVELAND SAID SEVERAL RECENT ACQUISITIONS COULD BOOST 1994 REVENUE BY 50 MILLION AND ENHANCE 1993'S FOURTHQUARTER EARNINGS FOR 1992 PARKOHIO REPORTED A LOSS FROM CONTINUING OPERATIONS OF 77 MILLION OR 128 A SHARE AND A NET LOSS OF 345 MILLION OR 576 A SHARE AFTER A CHARGE YEAR SALES TOTALED 1198 MILLION THE MAKER OF PLASTIC CONTAINERS AND FORGED METAL PARTS SAID IT AGREED TO BUY GENERAL ALUMINUM MANUFACTURING CO FROM EDWARD F CRAWFORD PARKOHIO'S CHAIRMAN AND CHIEF EXECUTIVE FOR 250000 SHARES THE COMPANY WILL PAY AN ADDITIONAL 750000 SHARES IF GENERAL ALUMINUM MEETS OR EXCEEDS CERTAIN PROFIT TARGETS PARKOHIO ALSO ACQUIRED TMW INC COLUMBUS OHIO GILCHRIST KUSTOM MOLDERS INC MOGADORE OHIO AND AN OPTION TO BUY BERWICK FORGE & MANUFACTURING CORP BERWICK PA 9310040054 931004 MANAGER'S JOURNAL BEATING CHINA'S RAPACIOUS PROFITEERS BY BREWER S STONE WHEN AN AMERICAN CATTLEMAN CAME TO SOUTHERN CHINA'S GUANGDONG PROVINCE IN THE MID1980S TO SET UP A JOINT VENTURE TO PRODUCE DAIRY GOODS WITH A CHINESE GOVERNMENT AGENCY IT DIDN'T TAKE LONG FOR TROUBLE TO START SOME 800000 THAT THE AMERICAN PAID FOR THE VENTURE'S CONSTRUCTION ENDED UP FINANCING AN ILLEGAL CARIMPORTING SCHEME IN HAINAN PROVINCE EVERYTHING FROM ELECTRICAL CABLES TO FOREIGN EMPLOYEES' WATCHES AND WALLETS STARTED DISAPPEARING FROM THE PROJECT SITE AT AN ALARMING RATE THE AMERICAN LATER DISCOVERED THAT HIS CHINESE PARTNER WAS CHARGING THE VENTURE 50 ABOVE MARKET VALUE FOR CATTLE FEED AS THE LOSSES TO CORRUPTION MOUNTED SOON EXCEEDING 20 OF HIS ORIGINAL 12 MILLION INVESTMENT HE ACTUALLY INVITED THE PEOPLE'S LIBERATION ARMY TO COME IN AND TAKE CONTROL ULTIMATELY HE REORGANIZED THE VENTURE UNDER COMPLETE FOREIGN OWNERSHIP IN A SEPARATE CASE AN INVESTOR FROM SINGAPORE APPROACHED MUNICIPAL AUTHORITIES IN SHENZHEN A NEXTDOOR NEIGHBOR TO HONG KONG ABOUT SETTING UP AN ENGINEERING PLANT IN THE BOOMTOWN IN 1989 HE THOUGHT HE KNEW CHINA FAIRLY WELL AND HE UNDERSTOOD THAT HE WOULD NEED TO ESTABLISH GOOD CONNECTIONS AND PERHAPS PASS A FEW BRIBES TO GET HIS PROJECT UNDER WAY THE INVESTOR WAS ORIGINALLY TOLD HE WOULD NEED FIVE ADMINISTRATIVE APPROVALS HE AGREED TO MAKE SIDE PAYMENTS TO SECURE EACH ONE SOON AFTER HE PAID THE BRIBES THOUGH A SHENZHEN OFFICIAL INFORMED HIM WITH APOLOGIES THAT 10 ADDITIONAL GOVERNMENT APPROVALS WOULD BE NEEDED IN THE END THE SINGAPORE BUSINESSMAN PAID MORE IN BRIBES THAN FOR THE LAND LABOR AND CAPITAL NEEDED TO SET UP HIS VENTURE THESE ARE JUST TWO OF THE HORRORS BUSINESSMEN CAN CONFRONT IN TODAY'S CHINA MANY OF THE PROBLEMS ARE ROOTED IN CHINA'S OFTEN UNREGULATED MOVE TO THE MARKET THEY ARE COMPOUNDED BY THE FACT THAT MUCH OF THE STATE ITSELF HAS TURNED TOWARD THE PROFIT MOTIVE KARL MARX ONCE PREDICTED THAT UNDER COMMUNISM THE STATE WOULD WITHER AWAY HE DID NOT ANTICIPATE THAT THE STATE WOULD TURN ITSELF INTO GANGS OF RAPACIOUS PROFITEERS WHILE THE PERVASIVENESS OF CHINA'S PROBLEMS WITH GRAFT CAN MAKE SOME BUSINESSMEN FEEL THAT THERE ARE FEW ALTERNATIVES TO GOING ALONG WITH IRREGULAR REQUESTS INTELLIGENT PLANNING AND CAREFUL NEGOTIATION CAN ALLOW COMPANIES TO OPERATE ON THE MAINLAND WITHOUT BECOMING PARTNERS IN CRIME HERE ARE SOME GENERAL GUIDELINES ESTABLISH AN ETHOS OF INTEGRITY FOR YOURSELF AND YOUR COMPANY PRESENT YOURSELF AS SOMEONE WHO CARES ABOUT ETHICAL ISSUES AND HAVE YOUR COMPANY PREPARE A WRITTEN CODE OF CONDUCT SUCH A CODE WILL HELP EDUCATE COMPANY EMPLOYEES ABOUT ETHICAL ISSUES THE IMPORTANCE OF THE DOCUMENT WILL BE UNDERSCORED IF YOU MAKE CLEAR THAT VIOLATORS WILL BE PUNISHED FURTHER YOUR EMPLOYEES CAN USE THE CODE TO DETER CORRUPTION WHEN NEGOTIATING CONTRACTS COCACOLA CO DISCOVERED THAT HAVING A WRITTEN CODE OF CONDUCT HELPED THE COMPANY SET THE TERMS OF DISCUSSION WITH PROSPECTIVE CHINESE PARTNERS BEFORE PROBLEMS WITH GRAFT COULD ARISE TAKE CARE IN CHOOSING YOUR CHINESE JOINTVENTURE PARTNER IT IS HACKNEYED TO SAY THAT CHOOSING A PARTNER IS THE SINGLE MOST IMPORTANT DECISION AN INVESTOR MAKES BUT IN CHINA THERE MAY BE NO GREATER TRUTH CHINA IS A UNIVERSE WITH MANY SMALL WORLDS WORD GETS AROUND IF A COMPANY IS REPUTABLE OR NOT IF NOTHING IS KNOWN ABOUT A PROSPECTIVE PARTNER CONDUCT A BACKGROUND CHECK FIND COMPANIES THAT MIGHT HAVE DEALT WITH THE PROSPECTIVE PARTNER OR CHECK ITS LEGAL RECORD WITH THE LOCAL AUTHORITIES THE SAFEST APPROACH IS TO CHOOSE AN ORGANIZATION THAT HAS CONDUCTED BUSINESS WITH FOREIGN COMPANIES BEFORE ALL THIS CAN BE DONE USING A TRUSTED CHINESE EMPLOYEE OR BY HIRING COMPANIES THAT SPECIALIZE IN CORPORATE SECURITY ISSUES LIKE PINKERTON CONSIDER GRAFT WHEN DECIDING WHERE TO LOCATE YOUR OPERATION THERE IS AN ENORMOUS VARIATION IN DEGREES OF CORRUPTION AMONG DIFFERENT TOWNSHIPS AND CITIES MY RESEARCH SHOWS THAT FOREIGN BUSINESSES ENCOUNTER FEWER PROBLEMS WITH GRAFT IN LESSDEVELOPED REGIONS WHERE LOCAL OFFICIALS ARE EAGER FOR INVESTMENT BECAUSE THIS ISSUE ULTIMATELY DEPENDS ON THE CHARACTER OF LOCAL OFFICIALS THE BEST STRATEGY IS TO ASK OTHER BUSINESSMEN WHO HAVE ALREADY DEALT WITH THE GOVERNMENT UNDER CONSIDERATION NONPROFIT BUSINESS ORGANIZATIONS SUCH AS CHAMBERS OF COMMERCE SHOULD BE ABLE TO HELP YOU IDENTIFY SUCH BUSINESSES PREPARE CAREFULLY BEFORE DEALING THROUGH AGENTS OR INFORMAL CHINESE SURROGATES COMPANIES TYPICALLY HIRE AGENTS TO HELP OBTAIN A GOVERNMENT APPROVAL TO ARRANGE FOR SUPPLIES OR TO NEGOTIATE SALES BE SKEPTICAL THOUGH WHEN AN AGENT IN CHINA TELLS YOU THAT BRIBES WILL BE NECESSARY TO GET SOMETHING DONE AGENTS HAVE AN INTEREST IN BEING ALLOWED TO PAY BRIBES BOTH BECAUSE THEY CAN KEEP A CUT FOR THEMSELVES AND BECAUSE PASSING BRIBES IS MUCH EASIER THAN THE WORK OF LEGITIMATE PERSUASION ANTICIPATE WAYS OF DEALING WITH CORRUPT REQUESTS IT IS BEST NOT TO REACT WITH SHOCK WHEN ASKED FOR A BRIBE AND IMMEDIATELY REFUSE TO BE INVOLVED IN SUCH SHADY DEALINGS OVERREACTION IN CHINA CAN CAUSE A LOSS OF FACE AND LEAD TO OTHER PROBLEMS A BRIBE BRUSQUELY REFUSED COULD LEAD TO AN ARMY OF INSPECTORS ARRIVING AT YOUR WORKPLACE OR PLANT TO SEARCH FOR AND FIND EVERY VIOLATION THEY CAN IMAGINE INSTEAD REMAIN CALM AND TRY TO ARTICULATE THE PRACTICAL DIFFICULTIES THAT THE ARRANGEMENT WOULD CREATE FOR YOU AND YOUR COMPANY SOME BUSINESSMEN REPORT SUCCESS WITH GENTLE REFERENCES TO OBLIGATIONS UNDER THEIR COMPANY'S CODE OF CONDUCT OR FOR AMERICANS UNDER THE FOREIGN CORRUPT PRACTICES ACT THE US LAW THAT FORBIDS PAYMENTS TO FOREIGN OFFICIALS IN ORDER TO CURRY BUSINESS ADVANTAGE IF YOU AND OTHERS IN YOUR INDUSTRY FACE A COMMON TYPE OF GRAFT TEAM UP AND AGREE ON A UNITED FRONT POLICY JOIN WITH OTHER FIRMS IN COMMON PURPOSE AND AGREE ON WHAT YOU WILL NOT DO WHEN DEALING WITH CHINESE ORGANIZATIONS THE CORPORATECOMMUNICATIONS FIRMS HILL AND KNOWLTON BURSONMARSTELLER AND INTERASIA COMMUNICATIONS FOR EXAMPLE HAVE AGREED ON A JOINT POLICY AIMED AT CURBING EXTORTIONATE REQUESTS FROM MAINLAND JOURNALISTS THE LOGIC BEHIND THEIR MOVE IS SIMPLE BECAUSE THEY HAVE A SHARED INTEREST IN REDUCING THE COST OF CORRUPTION THEY GATHERED IN COMMON PURPOSE TO DICTATE THEIR POSITION CHINA'S DIFFICULTIES WITH CORRUPTION MAY BE ROOTED IN THE STRAINS OF ECONOMIC REFORM BUT FOREIGN BUSINESSES MUST RECOGNIZE THAT THEY TOO BEAR SOME OF THE RESPONSIBILITY FOR THE PREVAILING BUSINESS CLIMATE THOSE WHO ENGAGE IN CORRUPTION NOT ONLY ENCOURAGE THE SHARKS TO CIRCLE BUT ALSO ENSURE THAT PREDATORY OFFICIALS WILL FIND NOURISHMENT FOR YEARS TO COME FOREIGN INVESTORS CAN SERVE THEIR COLLECTIVE INTERESTS BY ENCOURAGING PROBITY AND PREDICTABILITY IN THE CHINESE BUSINESS ENVIRONMENT MR STONE A DOCTORAL CANDIDATE AT HARVARD UNIVERSITY IS WRITING A STUDY OF CORRUPTION IN INDIA AND CHINA 9310040053 931004 BUSINESS BRIEFS REPUBLIC BANCORP ANN ARBOR MICH SIGNED A LETTER OF INTENT WITH CALIFORNIA UNITED BANK OF ENCINO CALIF TO BUY CERTAIN ASSETS OF ITS MORTGAGEBANKING DIVISION THE PURCHASE PRICE WASN'T DISCLOSED ALLTEL CORP LITTLE ROCK ARK COMPLETED ITS ACQUISITION OF CLOSELY HELD TDS HEALTHCARE SYSTEMS CORP OF ATLANTA FOR ABOUT 613 MILLION IN ALLTEL COMMON STOCK CERIDIAN CORP MINNEAPOLIS SIGNED A LETTER OF INTENT TO BUY SYSTEMS TAX SERVICES INC OF FOUNTAIN VALLEY CALIF TERMS WEREN'T DISCLOSED HARSCO CORP HARRISBURG PA RECEIVED A 78 MILLION CONTRACT FROM THE US GOVERNMENT TO MANUFACTURE M9 ARMORED COMBAT EARTHMOVERS PENNCORP FINANCIAL GROUP INC NEW YORK HAS BOUGHT PROFESSIONAL INSURANCE CORP JACKSONVILLE FLA FOR 24 MILLION SPX CORP MUSKEGON MICH AND FKI PLC OF HALIFAX WEST YORKSHIRE ENGLAND SIGNED AN AGREEMENT UNDER WHICH FKI WILL ACQUIRE AN SPX DIVISION FOR 1025 MILLION 9310040052 931004 BUSINESS BRIEF SUMITOMO CORP CONCERN NOW SAYS RESULTS IN 1ST HALF TO BE 10 LOWER JAPANESE TRADING HOUSE GIANT SUMITOMO CORP NOW ESTIMATES THAT ITS UNCONSOLIDATED OR PARENTONLY REVENUE AND EARNINGS FOR THE FIRST HALF ENDED SEPT 30 WILL BE 10 LOWER THAN IT INITIALLY EXPECTED A COMPANY OFFICIAL SAID THE OFFICIAL SAID THE STEEP ADVANCE BY THE YEN IN CURRENCY MARKETS REDUCED WHAT THE COMPANY CAN RECEIVE IN ITS HOME CURRENCY FROM THE DOLLARDENOMINATED CONTRACTS IN ADDITION THE COMPANY OFFICIAL SAID THE PROLONGED ECONOMIC STAGNATION AT HOME WAS CUTTING INTO REVENUE FROM DEALINGS IN STEEL AND CRUDE OIL THE COMPANY INITIALLY EXPECTED REVENUE OF 83 TRILLION YEN 7817 BILLION PRETAX PROFIT OF 20 BILLION YEN AND NET INCOME OF 10 BILLION YEN FOR THE FIRST HALF SUMITOMO OFFICIALS SAID THE COMPANY WILL REPORT EXTRAORDINARY LOSSES OF 312 BILLION YEN WHICH INCLUDES LOSSES FROM A SHORTTERM TRUST FUND MAINLY FOR SPECULATIVE STOCK INVESTMENT TRANSFERRED FROM ITS FINANCIAL SUBSIDIARY 9310040051 931004 GLOBAL VIEW GERMANY HAS BIG WOES BUT ALSO RAYS OF HOPE BY GEORGE MELLOAN ON THE E40 AUTOBAHN THAT TAKES WESTERN GERMANS TOWARD THE EASTERN CITY OF DRESDEN A NEW FLYOVER SOON WILL OPEN REMOVING FROM VISION THE INTRICATE CROOKS AND TURNS THAT FOR DECADES MARKED THE CHECKPOINT BETWEEN EAST AND WEST TRAVELERS NOW WILL HAVE SMOOTH GOING HARDLY NOTICING WHEN THEY PASS THE PLACE THAT ONCE DIVIDED CAPITALISM FROM COMMUNISM NEW LINKS BETWEEN EAST AND WEST ARE FORGED DAILY BUT GERMANS WHO EXPECTED SMOOTH GOING IN ALL ASPECTS OF REUNIFICATION HAVE BEEN DISAPPOINTED WESSIES WEST GERMANS COMPLAIN OF THE COSTS OF EXTENDING TO THE OSSIES EAST GERMANS THE BENEFITS OF THE SOCIAL MARKET ECONOMY OSSIES RETORT THAT BIGSPENDING WESSIES INVADE THEIR REGION SENDING HOUSING COSTS SOARING AND CROWDING OUT LOCAL INDUSTRIES THUS THIS WEEKEND'S CELEBRATIONS OF THE THIRD ANNIVERSARY OF REUNIFICATION CONTRASTED SHARPLY WITH THE EUPHORIA THAT SWEPT ACROSS GERMANY FROM THE TIME THE BERLIN WALL CAME DOWN IN NOVEMBER 1989 THROUGH THE FAST MOVING EVENTS THAT LED TO OFFICIAL REUNIFICATION 11 MONTHS LATER THIS YEAR THERE WERE THE USUAL SPEECHES BY PUBLIC OFFICIALS BUT ALSO NOISY DEMONSTRATIONS IN BOTH EAST AND WEST PROTESTING UNEMPLOYMENT CUTS IN SOCIAL BENEFITS AND THE NEW HARDNOSED ATTITUDE OF EMPLOYERS THE DECISION LAST WEEK BY EMPLOYERS IN THE METALS AND METALWORKING INDUSTRIES TO CANCEL THEIR CONTRACT WITH THE BIG IG METALL LABOR UNION RAISES THE SPECTER OF INDUSTRIAL STRIFE WEST GERMANY HAS SEEN LITTLE OF THAT IN THE POSTWAR ERA MAINLY BECAUSE LABOR CONTRACTS HAVE BEEN MORE THAN GENEROUS EAST GERMANS HAVEN'T SEEN IT EITHER BECAUSE IN THAT WORKERS' PARADISE STRIKES WERE NOT ALLOWED NEONAZIS OR NEOCOMMUNISTS LARGELY INDISTINGUISHABLE ARE WORRISOME TO GERMANS BECAUSE OF THE AWFUL PAST THEY BRING TO MIND POLICE ARE CRACKING DOWN ON THEIR MARCHES AND DEMONSTRATIONS BUT THESE EXTREMIST GROUPS WILL TRY TO PROMOTE AND EXPLOIT LABOR UNREST BUT GERMANY MAY NOT BE AS BADLY OFF AS SOME PEOPLE THINK CERTAINLY GERMANY AND MOST OF EUROPE ARE IN RECESSION AS OF JULY EXTENSIVE LAYOFFS PARTICULARLY IN THE AUTOMOTIVE INDUSTRY HAD REDUCED THE NUMBER OF JOBS IN WESTERN GERMANY BY OVER HALF A MILLION IN ONE YEAR THE EAST HAS NEARLY 12 MILLION UNEMPLOYED PARTLY BECAUSE OF THE RECESSION AND PARTLY BECAUSE OF AN OVERAMBITIOUS PROGRAM TO QUICKLY REHABILITATE THE EAST PUBLIC SECTOR DEBT AND BORROWING ARE CLIMBING ALARMINGLY THE BUNDESBANK'S SEPTEMBER ECONOMIC ANALYSIS ESTIMATES THAT INTEREST COSTS WILL BE ABSORBING 23 OF THE FEDERAL BUDGET BY 1997 COMPARED WITH ONLY 11 IN 1989 THAT IS NOT ESPECIALLY HIGH BY THE STANDARDS OF SAY BELGIUM OR ITALY BUT THE BUNDESBANK WARNS THAT THE SHARP RATE OF INCREASE PUTS GERMANY IN DANGER OF DEVELOPING LIKE BELGIUM AND ITALY STRUCTURAL BUDGET DEFICITS WHICH ARE VERY HARD TO REMEDY ONE REMEDY NOT USUALLY SUCCESSFUL IS TO TRY TO INFLATE THEM AWAY THAT IS SOMETHING THE BUNDESBANK CLEARLY DOES NOT WANT TO BE FORCED INTO DOING OBVIOUSLY THIS THREAT BECOMES GREATER IF THE RECESSION PERSISTS THAT IS NOT AN IDLE WORRY GERMANY DRAWS 38 OF ITS GDP FROM EXPORTS AND WILL HAVE A HARD TIME RECOVERING SO LONG AS THE GLOBAL INDUSTRIAL ECONOMY STAGGERS ALONG AT ITS NEARRECESSION ANNUAL GROWTH RATE OF ROUGHLY 1 SOME ECONOMISTS THINK THAT RECESSION IN ALL THREE PILLARS OF THE WORLD ECONOMY THE US JAPAN AND EUROPE HAS ITSELF BECOME STRUCTURAL RATHER THAN CYCLICAL AS A RESULT OF HEAVY TAX AND DEBT BURDENS THE PLUS SIDE OF THE GERMAN EQUATION IS THAT UNLIKE THE US AND JAPAN IT IS TRYING TO CONFRONT ITS STRUCTURAL PROBLEMS BONN AT LAST IS SHOWING SOME WILLINGNESS TO TAKE POLITICAL HEAT BY PUTTING A SQUEEZE ON SUCH GENEROUS AND SACROSANCT PROGRAMS AS NATIONAL HEALTH CARE AND UNEMPLOYMENT COMPENSATION THE GOVERNMENT HAS HIVED SOME 20 BILLION DM 123 BILLION OFF FORMER 1994 BUDGET ESTIMATES WHILE THE CUTS WILL NOT REDUCE THE DEFICIT THEY MAY PREVENT IT FROM RISING THIS IS NOT VERY AMBITIOUS BUT AT LEAST AN EFFORT THE WILLINGNESS OF EMPLOYERS TO STAND UP TO THE POWERFUL METALWORKERS UNION RISKY AS IT MAY BE ALSO IS A SIGN THAT GERMANY'S LEADERS HAVE FINALLY DISCARDED THEIR SMUG SELFASSURANCE ABOUT HOW WELL THE COUNTRY IS RUN THE TWO INSTITUTIONS THAT HAVE NOT BEEN SMUG MAINLY BECAUSE THEY HAVE FACED A LOT OF POLITICAL HEAT ARE THE BUNDESBANK AND TREUHANDANSTALT THE AGENCY IN CHARGE OF REHABILITATING THE EAST IT COULD BE ARGUED THAT THESE TWO GERMAN INSTITUTIONS ALSO HAVE THE BEST SUCCESS STORIES TO TELL THE BUNDESBANK IS HOLDING CONSUMER PRICES TO A PASSABLE 4 GROWTH RATE DESPITE THE GOVERNMENT SPENDING BINGE ITS MUCH CRITICIZED POLICY OF HIGH SHORTTERM INTEREST RATES HAS CONTAINED INFLATION EXPECTATIONS AND THEREBY HELD DOWN LONGTERM INTEREST RATES ONE OF THE BRIGHT SECTORS OF THE GERMAN ECONOMY TODAY IS HOUSING CONSTRUCTION WHICH DEPENDS HEAVILY ON ATTRACTIVE LONGTERM FINANCING TREUHANDANSTALT'S RECORD IS BY NO MEANS SPOTLESS BUT IT HAS PRIVATIZED A HUGE AMOUNT OF INDUSTRY THAT THE EAST GERMAN GOVERNMENT HAD RUN INTO THE GROUND A GREAT DEAL OF THE MONEY TRANSFERRED TO THE EAST HAS GONE INTO INVESTMENT RATHER THAN MERELY INCOME MAINTENANCE THE WHOLE EAST LOOKS LIKE A CONSTRUCTION SITE TODAY AS NEW FACTORIES AND STORES RISE ROADS ARE REBUILT AND RUNDOWN HOUSING IS RESTORED THE RESULT IS THAT PROTESTS TO THE CONTRARY THE EAST FINALLY IS SHOWING SOME SIGNS OF LIFE ACCORDING TO THE BUNDESBANK REPORT ORDERS RECEIVED BY EASTERN GERMAN MANUFACTURERS IN THE SECOND QUARTER WERE UP 13 FROM A YEAR EARLIER AND OUTPUT WAS UP 9 1/2 AS A RESULT OF THAT IMPROVEMENT AND THE CONSTRUCTION BOOM REAL GDP IN EASTERN GERMANY IN THE FIRST HALF OF THIS YEAR ROSE 6 FROM A YEAR EARLIER ACCORDING TO THE FEDERAL STATISTICAL OFFICE JOBS STILL ARE DISAPPEARING AS FACTORIES STRIVE FOR GREATER EFFICIENCY BUT THE RATE OF GROWTH IN UNEMPLOYMENT HAS SLOWED THE NEW JOBS BEING CREATED ARE ON THE WHOLE BETTER THAN THE ONES BEING LOST AS THE EASTERN ECONOMY MODERNIZES AND MOVES UP TO A HIGHER LEVEL OF TECHNOLOGY CLEARLY THE GERMAN GOVERNMENT NEEDS TO DO A GREAT DEAL MORE THAN IT IS DOING IT HAS MADE A SMALL START AT REMOVING SOME OF THE RIGIDITIES IN ITS LABOR LAWS SUCH AS THE LIMIT ON HOW LONG A FACTORY MACHINE CAN OPERATE EACH WEEK BUT IT NEEDS TO DO A GREAT DEAL MORE TO GIVE EMPLOYERS AND WORKERS MORE FLEXIBILITY IF IT IS TO RELIEVE ITS JOBS CRISIS REUNIFICATION HASN'T BEEN AS EASY AS EXPECTED BUT AT LEAST IT HAS BROUGHT RECOGNITION OF PROBLEMS GERMANY HAS HAD ALL ALONG 9310040050 931004 BUSINESS BRIEF SWISS REINSURANCE CO GROUP NET PROFIT ROSE 56 MEETING ANALYSTS' FORECASTS SWISS REINSURANCE CO ONE OF THE WORLD'S LARGEST REINSURANCE COMPANIES REPORTED A 56 RISE IN GROUP NET PROFIT FOR 1992 SWISS RE IN A LETTER TO ITS SHAREHOLDERS SAID ITS GROUP NET PROFIT IN 1992 ROSE TO 281 MILLION SWISS FRANCS 1971 MILLION FROM 266 MILLION FRANCS IN 1991 GROSS PREMIUMS ROSE TO 2193 BILLION FRANCS UP 26 FROM 1745 BILLION FRANCS THE COMPANY SAID GROUP UNDERWRITING LOSSES IN THE NONLIFE SECTOR ROSE 43 TO 111 BILLION FRANCS FROM 781 MILLION FRANCS IN 1991 WHILE INVESTMENT INCOME ADVANCED 12 TO 206 BILLION FRANCS FROM 184 BILLION FRANCS SWISS RE ALSO PLANS TO OPEN ITS REGISTERED SHARES TO FOREIGN INVESTORS ALLOWING A MAXIMUM STAKE OF 3 PER SHAREHOLDER OR GROUP SWISS RE'S 1992 GROUP NET PROFIT MATCHED ANALYSTS' PROJECTIONS WHILE GROSS PREMIUM INCOME WAS HIGHER THAN EXPECTED 9310040049 931004 NORTH KOREA CITED BY IAEA ON INSPECTIONS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL ATOMIC ENERGY AGENCY DECLARED NORTH KOREA IN VIOLATION OF ITS TREATY OBLIGATIONS FOR REFUSING TO ALLOW INSPECTIONS OF ALL ITS NUCLEAR FACILITIES THE 712 VOTE IN VIENNA DIDN'T ASK THE UNITED NATIONS SECURITY COUNCIL TO IMPOSE TRADE SANCTIONS LARGELY BECAUSE THE CLINTON ADMINISTRATION STILL HOPES TO COAX PYONGYANG TO OPEN ITS NUCLEAR FACILITIES TO IAEA INSPECTORS OUR GOAL REMAINS FIXED BUT IT'S CLEAR WE'RE NOT MOVING AT THE PACE WE'D LIKE SAID A US OFFICIAL INVOLVED IN THE POLICY MEANWHILE THE IAEA'S ABILITY TO MONITOR WHAT NORTH KOREA IS DOING AT YONGBYON ITS NUCLEAR RESEARCH FACILITY NORTH OF PYONGYANG IS DECLINING BY THE DAY SAID THE AGENCY'S SPOKESMAN DAVID KYD HE SAID BATTERIES IN AUTOMATED VIDEO CAMERAS AT YONGBYON HAVE BEGUN TO RUN OUT EQUIPMENT MONITORING THE TWO MAIN FACILITIES AT THE SITE A LARGE NUCLEAR RESEARCH REACTOR AND A PLANT FOR REPROCESSING SPENT NUCLEAR FUEL WILL REMAIN OPERABLE UNTIL THE END OF THIS YEAR HE SAID NORTH KOREA WHICH IS BELIEVED TO BE HIDING A NUCLEAR WEAPONS PROGRAM SAID LAST WEEK IT WOULD BAR ALL FUTURE INSPECTIONS IF THE IAEA TOOK ANY ACTION AGAINST IT IAEA EXPERTS WORRY THAT IF NORTH KOREA REFUELS ITS NUCLEAR REACTOR WITHOUT INSPECTORS BEING PRESENT EVIDENCE WILL DISAPPEAR ANY EARLY REMOVAL OF SPENT FUEL FROM THE REACTOR FOR USE IN A BOMB PROGRAM WOULD SHOW UP IN VARYING STATES OF RADIOACTIVE DECAY IN THE FUEL ASSEMBLIES NOW INSIDE THE REACTOR THE IAEA WAS ESTABLISHED TO CHECK FOR COMPLIANCE WITH THE NUCLEAR NONPROLIFERATION TREATY UNDER WHICH NORTH KOREA AND MOST OF THE AGENCY'S 117 MEMBER NATIONS AGREED TO FOREGO NUCLEAR WEAPONS PROGRAMS AND OPEN THEIR NUCLEAR FACILITIES TO INSPECTION THE AGENCY'S IMPASSE WITH NORTH KOREA BEGAN IN FEBRUARY WHEN INSPECTORS FOUND TWO FACILITIES NEAR YONGBYON THAT MAY BE HIDING NUCLEAR WASTES FROM A CLANDESTINE WEAPONS PROGRAM IN FRIDAY'S VOTE TAKEN IN PART TO SHOW THE NORTH KOREANS HOW ISOLATED THEY ARE AND TO MAKE A RECORD FOR FUTURE MOVES BY THE UN ONLY LIBYA BACKED NORTH KOREA ELEVEN OTHER NATIONS ABSTAINED NORTH KOREAN DIPLOMATS MADE SEVERAL BELLIGERENT STATEMENTS LAST WEEK REGARDING THE IAEA'S MOVE AND THERE WERE REPORTS FROM JAPAN THAT THE NORTH KOREAN AIR FORCE RECENTLY HAD INCREASED ITS MISSIONS BUT PENTAGON SPOKESMEN SAY THEY HAVE SEEN NO EVIDENCE TO SUPPORT THE REPORTS 9310040048 931004 BUSINESS BRIEF COCACOLA AMATIL LTD AUSTRALIAN CONCERN ACQUIRES FINAL FRANCHISE IN HUNGARY COCACOLA AMATIL LTD AN AUSTRALIABASED SOFTDRINK COMPANY THAT IS 52 OWNED BY COCACOLA CO SAID IT ACQUIRED ANOTHER FRANCHISE IN HUNGARY AND NOW COVERS ALL COCACOLA FRANCHISED TERRITORIES IN THAT COUNTRY THE ACQUISITION OF THE MISKOLC FRANCHISE IN NORTHEAST HUNGARY FOLLOWS THE EXPIRATION OF THE LAST FRANCHISE AGREEMENT WITH STATEOWNED BOTTLERS COCACOLA AMATIL HAS BEEN OPERATING IN HUNGARY SINCE MAY 1991 WHEN IT STARTED A JOINT VENTURE WITH A FORMER FRANCHISEE FOR THE BUDAPEST TERRITORY IT LATER ACQUIRED THE PARTNER'S EQUITY AND THEN ACQUIRED ALL SIX COCACOLA FRANCHISES THROUGHOUT HUNGARY THE AUSTRALIAN COMPANY'S CCA BEVERAGES HUNGARY UNIT OPERATES SIX PRODUCTION PLANTS DEAN WILLS CHAIRMAN OF COCACOLA AMATIL SAID THT SALES IN HUNGARY DOUBLED LAST YEAR AND THAT THERE ARE PROSPECTS FOR FURTHER SUBSTANTIAL GROWTH 9310040047 931004 FASTFOOD FIRM OUSTS KARCHER AS CHAIRMAN BOARD VOTE FOLLOWS CLASH OVER MARKETING LINK SETS UP A PROXY FIGHT BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL CARL N KARCHER WAS OUSTED AS CHAIRMAN OF CARL KARCHER ENTERPRISES INC SETTING THE STAGE FOR A PROXY FIGHT FOR CONTROL OF THE FASTFOOD CHAIN HE FOUNDED 52 YEARS AGO DIRECTORS OF THE ANAHEIM CALIF COMPANY VOTED 52 FRIDAY WITH ONLY MR KARCHER AND HIS SON CARL LEO KARCHER DISSENTING TO STRIP MR KARCHER OF HIS EXECUTIVE TITLE THE BOARD GRANTED HIM AN ANNUAL RETIREMENT BENEFIT OF 200000 AND HE RETAINS HIS BOARD SEAT UNTIL NEXT YEAR ELIZABETH A SANDERS 48 YEARS OLD A ONETIME NORDSTROM INC EXECUTIVE AND LONGTIME FRIEND OF MR KARCHER'S WHO HAS SERVED ON THE BOARD FOR 10 YEARS SUCCEEDS HIM AS CHAIRMAN THE MOVE FOLLOWED WEEKS OF THREATS BY MR KARCHER TO LAUNCH A PROXY FIGHT TO OUST DIRECTORS AFTER THE BOARD REFUSED TO APPROVE A PLAN TO TESTMARKET SALES OF GREEN BURRITO MEXICAN FOODS IN SELECTED CARL'S JR RESTAURANTS MR KARCHER CLAIMS THE DUALMARKETING CONCEPT WOULD REVIVE THE FORTUNES OF THE 649RESTAURANT CARL'S JR CHAIN BUT THE COMPANY HAS CHARACTERIZED HIS PLAN AS A SWEETHEART DEAL DESIGNED TO HELP THE 76YEAROLD PATRIARCH OUT OF HIS PERSONAL FINANCIAL WOES DONALD DOYLE CHIEF EXECUTIVE OFFICER SAID MR KARCHER HAD BECOME A DISRUPTIVE PRESENCE WITH HIS RELENTLESS PURSUIT OF A MARKETING PROPOSAL THAT THE BOARD HAD REJECTED AND THAT IS WHAT LED TO HIS OUSTER CALLING IT ONE OF THE SADDEST DAYS IN HIS LIFE MR KARCHER SAID IN A STATEMENT FRIDAY I FEEL LIKE I'VE BEEN STRIPPED OF MY OFFICE BY A BUNCH OF TURNCOATS AFTER 52 YEARS I'M ON THE OUTSIDE LOOKING IN HE REITERATED THE POSSIBLITY OF LAUNCHING A PROXY CONTEST TO REPLACE THE BOARD WHICH IS ALREADY MADE UP PRIMARILY OF HIS LONG TIME FRIENDS WITH A SLATE OF DIRECTORS WHO HAVE MORE FOODINDUSTRY EXPERIENCE IN NATIONAL OVERTHECOUNTER TRADING FRIDAY CARL KARCHER ENTERPRISES STOCK ROSE 125 CENTS TO 8625 A SHARE IN NATIONAL OVERTHECOUNTER TRADING WITH A 34 STAKE IN THE COMPANY MR KARCHER WOULD HAVE A STRONG HAND IN THE EVENT OF A PROXY BATTLE BUT THERE IS A WILD CARD HE OFFERED ABOUT TWOTHIRDS OF HIS STOCK AS COLLATERAL ON NEARLY 30 MILLION OF LOANS THAT ARE NOW IN DEFAULT AND UNION BANK OF SAN FRANCISCO AND COMMERCIAL CENTER BANK OF SANTA ANA CALIF HAVE AN OPTION TO SEIZE THOSE 46 MILLION SHARES THE BANKS HAVE NOT MADE ANY MOVE AND WE DON'T ANTICIPATE THEY WILL SAID STEVEN FINK MR KARCHER'S SPOKESMAN AS FAR AS CARL IS CONCERNED HE DOES HAVE THE VOTING RIGHTS HOWEVER MR DOYLE THE FORMER KENTUCKY FRIED CHICKEN CORP EXECUTIVE WHO SUCCEEDED MR KARCHER AS CHIEF EXECUTIVE LATE LAST YEAR IS BETTING THAT MR KARCHER ISN'T IN AS STRONG A POSITION AS HE BELIEVES TO THE BEST OF OUR KNOWLEDGE CARL HAS NO ASSURANCE HE CAN VOTE HIS OWN SHARES MR DOYLE SAID IN TWO DAYS OF BOARD MEETINGS LAST WEEK DIRECTORS TRIED TO REACH A COMPROMISE WITH MR KARCHER BUT TO NO AVAIL UNDER ONE PLAN OFFERED BY THE COMPANY MR KARCHER WOULD HAVE BECOME CHAIRMAN EMERITUS AND THREE NEW DIRECTORS ACCEPTABLE TO HIM AND THE OTHER BOARD MEMBERS WOULD HAVE BEEN SELECTED MR DOYLE SAID MOREOVER THE COMPANY PROPOSED A POSSIBLE BUYBACK OF AS MUCH AS 16 MILLION OF MR KARCHER'S STOCK SUBJECT TO SHARE HOLDER APPROVAL ALTHOUGH MR KARCHER HAS ACKNOWLEDGED THAT HE IS EXPLORING WAYS TO RESTRUCTURE HIS FINANCES HE HAS INSISTED THAT HIS ENTHUSIASM FOR THE GREEN BURRITO TRANSACTION IS IN NO WAY RELATED TO THAT AS PART OF THE GREEN BURRITO PROPOSAL HE PRESENTED TO THE BOARD IN JULY MR KARCHER WAS TO HAVE RECEIVED A 6 MILLION LOAN FROM WILLIAM THEISEN CONTROLLING SHAREHOLDER OF ANAHEIMBASED GB FOODS CORP PARENT OF THE GREEN BURRITO FASTFOOD RESTAURANTS IN RETURN MR THEISEN WOULD HAVE BEEN NAMED TO THE BOARD AND BEEN GIVEN AN OPTION TO BUY ONE MILLION CARL KARCHER ENTERPRISES SHARES THE BOARD REJECTED THAT PLAN SAYING IT DIDN'T MAKE SOUND BUSINESS SENSE THAT PROMPTED MR KARCHER TO CALL FOR THE RESIGNATIONS OF MS SANDERS PETER CHURM AND KENNETH OLSEN FROM THE BOARD ANDREW PUZDER MR KARCHER'S ATTORNEY SAID THIS ISN'T ABOUT GREEN BURRITO IT'S NOT ABOUT HIS PERSONAL FINANCES IT'S REALLY ABOUT DON DOYLE TAKING CONTROL OF THE COMPANY 9310040046 931004 WHO'S NEWS GENERAL MILLS INC GENERAL MILLS INC MINNEAPOLIS KENNETH L THOME 45 YEARS OLD VICE PRESIDENT OF INFORMATION SYSTEMS WAS NAMED SENIOR VICE PRESIDENT FINANCIAL OPERATIONS SUCCEEDING THOMAS P NELSON 63 WHO RETIRES AT YEAR END THE PROMOTION IS EFFECTIVE OCT 15 NO IMMEDIATE SUCCESSOR TO MR THOME WAS NAMED BY THIS PACKAGED FOODS AND RESTAURANTS CONCERN 9310040045 931004 WHAT'S NEWS BUSINESS AND FINANCE COLUMBIA HEALTHCARE PLANS TO ACQUIRE HCA FOR 57 BILLION IN STOCK MERGING THE US'S LARGEST FORPROFIT HOSPITAL CHAINS INTO A HEALTHCARE GIANT THAT INTENDS TO BUY MORE HOSPITALS THE PLAN ILLUSTRATES THE BREATHTAKING SPEED AT WHICH HEALTHCARE COMPANIES ARE CONSOLIDATING TO MEET DEMANDS FOR COSTEFFECTIVE CARE KEYCORP AND SOCIETY ARE EXPECTED TO ANNOUNCE A MERGER TODAY THROUGH A 39 BILLION STOCK SWAP THAT WILL CREATE THE NATION'S 10THBIGGEST BANK AND ONE STRETCHING ACROSS 18 STATES PEOPLE FAMILIAR WITH THE TRANSACTION SAID THE DOLLAR SURGED AGAINST THE MARK IN EARLY ASIAPACIFIC TRADING MONDAY AMID CHAOS IN THE STREETS OF MOSCOW THE EVENTS ARE EXPECTED TO TAKE ONLY A LIMITED TOLL ON US STOCK AND BOND PRICES TODAY WITH MOST OF THE DAMAGE FELT IN EUROPEAN MARKETS ESPECIALLY GERMANY'S ANALYSTS SAID BELL ATLANTIC IS PLANNING TO BUY A MINORITY STAKE IN A FASTGROWING MEXICAN CELLULARPHONE FIRM FOR UP TO 1 BILLION PEOPLE INVOLVED IN THE TALKS SAID THE AGREEMENT WOULD GIVE BELL ATLANTIC A FOOTHOLD IN THE POTENTIALLY VAST MARKET FOR PHONE SERVICES IN MEXICO OTHER REGIONAL TELEPHONE COMPANIES CAN'T BENEFIT FROM A FEDERAL JUDGE'S DECISION TO LET BELL ATLANTIC PROVIDE VIDEO PROGRAMMING SERVICES IN ITS OPERATING AREAS THE JUDGE SAID CONSUMER CONFIDENCE PICKED UP LAST MONTH THE INDEX OF LEADING ECONOMIC INDICATORS ROSE 1 IN AUGUST THE CLINTON HEALTH PLAN'S FINAL VERSION WILL PROBABLY PROJECT A SMALLER BUDGETDEFICIT CUT OVER THE NEXT SEVEN YEARS THAN THE 91 BILLION SHOWN IN A WIDELY CIRCULATED DRAFT OF THE PLAN A DRUG INDUSTRY PLAN TO HOLD PRICE RISES TO THE INFLATION RATE WAS REJECTED BY THE JUSTICE DEPARTMENT THE MOVE COULD COMPLICATE CLINTON'S EFFORT TO PERSUADE DRUG FIRMS TO CURB PRICES VIACOM APPEARED CLOSE TO OBTAINING AN INVESTMENT OF ROUGHLY 1 BILLION FROM NYNEX FATTENING ITS WAR CHEST IN THE BATTLE FOR PARAMOUNT GM'S BOARD AND ITS PRESIDENT WILL WEIGH A RANGE OF OPTIONS TODAY AS THEY ARE CONFRONTED BY THE UAW WHICH INSISTS THAT GM ACCEPT THE SAME PATTERN AGREEMENT CHRYSLER ACCEPTED FRIDAY CARL KARCHER WAS OUSTED AS CHAIRMAN OF CARL KARCHER ENTERPRISES SETTING THE STAGE FOR A PROXY FIGHT FOR CONTROL OF THE FASTFOOD CHAIN UNITED AIRLINES REACHED A MARKETING AGREEMENT WITH GERMANY'S LUFTHANSA MARKING A VICTORY OVER RIVAL AMERICAN AIR IN THE US GIANTS' BATTLE TO BOOST THEIR PRESENCE IN EUROPE FITCH INVESTORS PLANS TO SEPARATE CREDITCARD OPERATIONS FROM OTHER BUSINESSES IN ASSIGNING RATINGS FOR DEPARTMENTSTORES WHICH COULD MAKE IT EASIER AND CHEAPER FOR THOSE CONCERNS TO RAISE MONEY IN THE BOND MARKET GE'S NBC ACQUIRED A MAJORITY STAKE AND MANAGEMENT CONTROL OF THE LONDONBASED PANEUROPEAN TELEVISION SERVICE SUPER CHANNEL QUADREX'S CHAIRMAN QUIT AMID STRUGGLES WITH A NEW TECHNOLOGY AND A STRING OF QUARTERLY LOSSES AT THE ENGINEERING AND WASTEMANAGEMENT FIRM INTEL PLANS TO SELL A LOWCOST VERSION OF ITS 386 MICROPROCESSOR FOR USE IN SUCH EQUIPMENT AS COPIERS FAX MACHINES AND CELLULAR TELEPHONES BONDS LEHMAN BROTHERS TREASURY INDEX 563345 UP 2747 COMMODITIES OIL 1863 A BARREL OFF 16 CENTS DOW JONES FUTURES INDEX 12531 OFF 008 SPOT INDEX 11710 OFF 162 DOLLAR 10595 YEN OFF 023 16309 MARKS OFF 00021 9310040043 931004 JAPAN'S BIG FOUR BANK OF TOKYO OPEN TRUSTS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN ADDED FIVE TRUST BANKS FRIDAY AS THE COUNTRY'S BIG FOUR SECURITIES COMPANIES AND PREMIER FOREIGNEXCHANGE BANK EACH FORMALLY OPENED ITS NEW ARM NOMURA TRUST & BANKING CORP DAIWA INTERNATIONAL TRUST BANK LTD NIKKO TRUST & BANKING CORP YAMAICHI TRUST & BANK LTD AND TOKYO TRUST BANK LTD AN ARM OF BANK OF TOKYO ARE ALLOWED BY LIBERALIZATION OF JAPAN'S SECURITIES AND BANKING LAWS LAST YEAR TO HANDLE ALL BANKING BUSINESS INCLUDING FOREIGN EXCHANGE BUT REGULATORS PROHIBIT THE TRUST BANKS FROM SETTING UP LOAN PENSION AND DESIGNATED MONEY OR TOKKIN TRUSTSPROVINCES OF THE SEVEN FULL TRUST BANKS THE BIG FOUR INCLUDE NOMURA SECURITIES CO DAIWA SECURITIES CO NIKKO SECURITIES CO AND YAMAICHI SECURITIES CO 9310040042 931004 WHAT'S NEWS WORLDWIDE STREET BATTLES ERUPTED IN MOSCOW AND YELTSIN CALLED IN TROOPS THE RUSSIAN PRESIDENT DECLARED A WEEKLONG STATE OF EMERGENCY AFTER 10000 ANTIYELTSIN DEMONSTRATORS WENT ON A RAMPAGE AROUND THE BESIEGED PARLIAMENT BUILDING AND THEN STORMED THE MAYOR'S OFFICE AND THE TVBROADCASTING STATION OVERALL MORE THAN 20 PEOPLE WERE REPORTED KILLED AND HUNDREDS INJURED FACING THE WORST POLITICAL VIOLENCE IN MOSCOW SINCE THE 1917 BOLSHEVIK REVOLUTION YELTSIN VOWED TO PUT DOWN THE HARDLINE CHALLENGE EARLY TODAY 40 ARMORED VEHICLES TOOK UP POSITIONS OUTSIDE THE KREMLIN AND DEFENSE MINISTRY IN THE ARMY'S FIRST MAJOR SHOW OF FORCE TO SUPPORT YELTSIN IN THE CRISIS CLINTON REAFFIRMED HIS BACKING FOR YELTSIN SAYING THE US CAN'T BE IN A POSITION OF WAVERING IN ITS RESPONSE TO THE EVENTS IN MOSCOW AT LEAST FIVE AMERICANS WERE KILLED DURING A UN MILITARY OPERATION AGAINST SOMALI CLAN LEADER AIDID OTHER AMERICAN TROOPS WERE WOUNDED AND TWO US HELICOPTERS WERE SHOT DOWN DURING THE OFFENSIVE IN MOGADISHU US DEFENSE OFFICIALS SAID ABOUT 20 SOMALIS INCLUDING AT LEAST ONE TOP AIDID AIDE WERE DETAINED DEFENSE SECRETARY ASPIN SAID HE WOULD DECIDE WITHIN A FEW DAYS WHETHER TO FORCE THE NAVY'S TOP OFFICER INTO EARLY RETIREMENT OVER HIS HANDLING OF THE TAILHOOK SEXUAL HARASSMENT SCANDAL HE DESCRIBED AS EXCELLENT A REPORT BY NAVY SECRETARY DALTON RECOMMENDING THAT ADM KELSO BE RETIRED NINE MONTHS EARLY PALESTINIANS RECEIVED INTERNATIONAL COMMITMENTS FOR ABOUT 2 BILLION TO BOLSTER THEIR GOVERNANCE OF THE OCCUPIED TERRITORIES OVER THE NEXT FIVE YEARS LAST WEEK'S DONORS' CONFERENCE IN WASHINGTON PLEDGED 600 MILLION FOR THE FIRST YEAR TO BE USED FOR HOUSING CONSTRUCTION AND ROAD AND SCHOOL REHABILITATION ISRAEL AND JORDAN AGREED TO WORK HARDER IN THEIR QUEST FOR A PEACE TREATY JORDAN'S CROWN PRINCE HASSAN AND ISRAELI FOREIGN MINISTER PERES MADE THEIR PLEDGE DURING A MEETING FRIDAY AT THE WHITE HOUSE CLINTON SAID THE US WOULD ASSIST BOTH NATIONS IN FOSTERING JOINT ECONOMIC PROJECTS MUSLIMVSMUSLIM FIGHTING BROKE OUT IN NORTHWESTERN BOSNIA AS GUNMEN LOYAL TO BOSNIAN PRESIDENT IZETBEGOVIC RANSACKED A RADIO STATION IN THE BREAKAWAY ENCLAVE KILLING A POLICE OFFICER MEANWHILE BOSNIAN CROATS AND MUSLIMS SIGNED A NEW CEASEFIRE ACCORD FOR THE SOUTHWEST TOWN OF MOSTAR GEORGIAN REBELS SEIZED TWO TOWNS AND A KEY PORT CITY POTI IN THEIR CAMPAIGN TO DRIVE THE SHEVARDNADZE GOVERNMENT FROM POWER RADIO REPORTS SAID INSURGENT FORCES LOYAL TO OUSTED PRESIDENT GAMSAKHURDIA WERE THREATENING THE CAPITAL TBILISI SHEVARDNADZE URGED ALL SIDES TO HALT FIGHTING AN INTERNATIONAL RELIEF EFFORT BEGAN TO HELP SURVIVORS OF INDIA'S WORST EARTHQUAKE IN 50 YEARS AS A US CARGO PLANE ARRIVED IN BOMBAY WITH TENTS AND SHELTER MATERIAL TREMORS CONTINUED TO ROCK MAHARASHTRA STATE IN SOUTHWEST INDIA WHERE MORE THAN 20000 PEOPLE WERE BELIEVED TO HAVE DIED IN THURSDAY'S QUAKE THE FBI HAS OBTAINED TWO NOTES TO AN OFFICIAL IN HANOI FROM A VIETNAMESE BUSINESSMAN WHOSE CONTACTS WITH COMMERCE SECRETARY BROWN ARE BEING INVESTIGATED BY A GRAND JURY ACCORDING TO NEWS REPORTS THE NOTES REPORTEDLY DESCRIBE POSITIVE MEETINGS LAST YEAR WITH BROWN ABOUT A PROPOSAL FOR ASSISTING THE BUSINESSMAN NORTH KOREA WAS DECLARED IN VIOLATION OF ITS TREATY OBLIGATIONS FOR REFUSING TO ALLOW INSPECTIONS OF ALL ITS NUCLEAR FACILITIES BUT THE 712 VOTE BY THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA DIDN'T ASK THE UN SECURITY COUNCIL TO IMPOSE TRADE SANCTIONS LARGELY BECAUSE THE US HOPES TO COAX PYONGYANG TO OPEN UP ITS NUCLEAR SITES VIOLENT CRIMES REPORTED TO POLICE ROSE SLIGHTLY LAST YEAR DUE TO INCREASES IN AGGRAVATED ASSAULTS AND RAPES BUT THE TOTAL NUMBER OF CRIMES REPORTED DROPPED 29 TO 144 MILLION THE FBI SAID SATURDAY THOUGH THE FIGURES REPRESENTED THE FIRST ANNUAL DECLINE SINCE 1984 FBI CHIEF FREEH SAID CRIME IS SHOCKINGLY HIGH IN THE US THE RULING PERONIST PARTY APPEARED HEADED TO VICTORY IN ARGENTINE CONGRESSIONAL ELECTIONS THAT COULD AFFECT PRESIDENT MENEM'S CHANCES OF RUNNING FOR A SECOND TERM IN 1995 HE NEEDS A VICTORY TO FUEL HIS DRIVE TO REFORM THE CONSTITUTION WHICH LIMITS PRESIDENTS TO ONE TERM 9310040041 931004 BUSINESS BRIEF IOMEGA CORP DISK DRIVE CONCERN SLATES ANOTHER CUT IN WORK FORCE IOMEGA CORP SAID IT PLANS TO CUT ITS WORK FORCE IN AN EFFORT TO OFFSET DWINDLING PROFIT MARGINS IN THE FIERCELY COMPETITIVE DISK DRIVE MARKET THE ROY UTAH MAKER OF REMOVABLE DISK DRIVES FOR COMPUTERS SAID IT WILL CUT ITS 1100MEMBER WORK FORCE BY LESS THAN 100 PEOPLE IOMEGA SAID THE WORKERS TO BE DROPPED ARE IN NONCRITICAL POSITIONS THE CUTS MARK IOMEGA'S SECOND ROUND OF LAYOFFS THIS YEAR IN FEBRUARY THE COMPANY SAID IT WAS CUTTING 99 JOBS AND REORGANIZING ITS BUSINESS OPERATIONS IN PART BECAUSE OF A SHORTFALL IN REVENUE NEEDED TO OFFSET NEWPRODUCT DEVELOPMENT COSTS IOMEGA SAID ITS LATEST JOB REDUCTION IS THE RESULT OF A RECENT 25 PRICE ROLLBACK ON SOME OF ITS PRODUCTS 9310040040 931004 EC CLEARS COATING PACT BETWEEN THYSSEN STAHL OERLIKONBUHRLE UNIT SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT CLEARED A METALLICTOOLCOATING VENTURE BETWEEN GERMAN STEEL PRODUCTS GROUP THYSSEN STAHL AG AND LIECHTENSTEIN'S BALZERS AG A UNIT OF SWISS OERLIKONBUHRLE HOLDING AG UNDER EC MERGER RULES UNDER THE TERMS OF THE LINKUP BALZERS A SPECIALIST IN HIGH VACUUM AND THIN COATING TECHNIQUES AND THYSSEN STAHL WILL COMBINE THEIR GERMAN ACTIVITIES IN HARDENING AND COATING METALLIC TOOLS INTO A JOINTLY CONTROLLED COMPANY IN A STATEMENT THE COMMISSION SAID IT CLEARED THE LINKUP BECAUSE THE PACT WILL ONLY HAVE MINOR EFFECTS ON THE MARKETS FOR THE HARDENING AND COATING OF METALLIC TOOLS AND THE COMPANIES' COMBINED MARKET SHARE ISN'T EXPECTED TO CREATE A DOMINANT POSITION UNDER EC LAW THE COMMISSION REVIEWS MERGERS AND OTHER ACCORDS BETWEEN LARGE COMPANIES TO ENSURE THEY DON'T HARM COMPETITION WITHIN THE EC THE COMMISSION HAS THE POWER TO BLOCK OR ALTER AGREEMENTS THAT CREATE OR STRENGTHEN DOMINANT POSITIONS ON THE EC MARKET 9310040039 931004 BUSINESS BRIEF CADBURY SCHWEPPES PLC STAKE HELD IN GROUP FORMED TO BID ON UK LOTTERY JOB CADBURY SCHWEPPES PLC THE UNITED KINGDOM CONFECTION AND SOFTDRINK MAKER SAID IT OWNS 225 OF CAMELOT HOLDINGS LTD A GROUP BEING FORMED TO BID TO OPERATE THE PROPOSED UK NATIONAL LOTTERY GTECH CORP OF PROVIDENCE RI ALSO WILL OWN 225 GTECH IS A MAJOR PROVIDER OF COMPUTERBASED LOTTERY SYSTEMS RACAL ELECTRONICS PLC OF THE UK AND BRITISH SECURITIES PRINTER DE LA RUE PLC BOTH WILL HOLD 225 THE REMAINING 10 WILL BE HELD BY THE UKBASED JAPANESECONTROLLED COMPUTER GROUP ICL PLC CADBURY SAID THE GROUP COMBINES CADBURY'S EXPERTISE IN CONSUMER MARKETING WITH DE LA RUE'S EXPERIENCE WITH SECURITIES GTECH'S KNOWLEDGE OF LOTTERIES RACAL'S ELECTRONIC DATA NETWORKS AND ICL'S COMPUTER SYSTEMS THE UK NATIONAL LOTTERY IS SCHEDULED TO BE LAUNCHED BY 1995 ENABLING LEGISLATION HAS PASSED MOST OF THE WAY THROUGH PARLIAMENT THE MONEY RAISED WILL BE USED TO SUPPORT THE ARTS HERITAGE PROJECTS SPORTS AND OTHER CHARITIES BUT THE OPERATOR STANDS TO GAIN HUNDREDS OF MILLIONS OF POUNDS IN ADMINISTRATION FEES 9310040038 931004 BUSINESS BRIEF USINOR SACILOR SA LOSS FOR FIRST HALF WIDENED TO 4614 MILLION ON SLUMP THE STEEL INDUSTRY CRISIS PLUNGED FRENCH STATECONTROLLED USINOR SACILOR SA EVEN DEEPER INTO THE RED AS THE CONCERN REPORTED A WIDENED GROUP LOSS OF 26 BILLION FRANCS 4614 MILLION FOR THE FIRST HALF THE LOSS COMPARED WITH A LOSS OF 200 MILLION FRANCS IN THE FIRST HALF OF 1992 THE STEEL COMPANY'S HALFYEAR LOSSES ALREADY EXCEED THE 24 BILLION FRANCS FOR THE WHOLE OF 1992 AND THE COMPANY SAID THAT IT SEES NO SIGNIFICANT PROGRESS IN OPERATING RESULTS IN THE SECOND HALF OF THE YEAR THE STEELMAKER'S NET LOSS WOULD HAVE BEEN EVEN WORSE IF IT HADN'T BEEN FOR A CHANGE IN ACCOUNTING FOR REBUILDING OF HIGHTEMPERATURE FURNACES WHICH ADDED 24 BILLION FRANCS TO THE BOTTOM LINE CALCULATIONS THE CHANGE WAS MADE TO BRING USINOR SACILOR'S ACCOUNTS INTO LINE WITH ACCOUNTING PRACTICES AT OTHER EUROPEAN AND US STEEL COMPANIES USINOR SACILOR TOOK A 22 BILLION FRANC CHARGE LINKED TO THE BANKRUPTCY OF ITS GERMAN SUBSIDIARY UNIT SAARSTAHL AG INCLUDING A PREVIOUSLY ANNOUNCED 490 MILLION FRANC CAPITAL INFUSION COMPANY OFFICIALS HAD SAID IN MAY THAT SINCE THE MIDDLE OF 1989 WHEN USINOR SACILOR ACQUIRED SAARSTAHL IT HAD CARRIED A TOTAL OF 16 BILLION FRANCS IN OPERATING LOSSES 9310040037 931004 POLITICS & POLICY ONLY IN WASHINGTON CONFLICTS AMONG CLIENTS DON'T POSE PROBLEMS FOR SOME LOBBYING FIRMS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GROUP REPRESENTING THE NATION'S FORPROFIT HOSPITALS SUPPORTS USING SIN TAXES ON TOBACCO AND ALCOHOL TO HELP PAY FOR OVERHAULING THE HEALTHCARE SYSTEM US TOBACCO CO OBVIOUSLY DOESN'T THE NATIONAL ASSOCIATION OF LIFE UNDERWRITERS CALLS PRESIDENT CLINTON'S PLAN TO LIMIT ATTORNEYS' FEES IN MEDICALMALPRACTICE CASES A STEP IN THE RIGHT DIRECTION THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA HATES THE IDEA YET DESPITE THEIR CONFLICTING POSITIONS ALL FOUR OF THESE ENTITIES HAVE ONE STRIKING THING IN COMMON THEY HAVE HIRED THE SAME LOBBYING FIRM TO HELP MAKE THEIR CASE IN WASHINGTON PATTON BOGGS & BLOW ONLY IN WASHINGTON COULD THIS NOT BE A PROBLEM FOR ALL CONCERNED GRAPPLING WITH POTENTIAL CONFLICTS AMONG CLIENTS IS NOTHING NEW FOR THIS CITY'S LEGION OF LOBBYISTS BUT THE DEBATE OVER HEALTH CARE AN EXTRAORDINARILY COMPLICATED STRUGGLE AFFECTING ONESEVENTH OF THE US ECONOMY IS TESTING THE BOUNDS OF WHAT'S APPROPRIATE AND WHAT'S NOT I DON'T THINK THERE ARE MANY OTHER ISSUES THAT ATTRACT SO MANY DIFFERENT POWERFUL INTERESTS AT ONE TIME SAYS SARA NICHOLS A STAFF ATTORNEY AT PUBLIC CITIZEN A RALPH NADERAFFILIATED CONSUMER GROUP THAT IS ITSELF PUSHING FOR A CANADIANSTYLE SINGLEPAYER HEALTH SYSTEM THIS IS GOING TO BE THE MOST LOBBIED PROGRAM IN HISTORY SOME OF THE LARGEST FIRMS INCLUDING PATTON BOGGS AND HOGAN & HARTSON CURRENTLY HAVE MORE THAN A DOZEN ACTIVE HEALTHCARE CLIENTS ON THEIR ROSTERS ACCORDING TO FEDERAL REGISTRATION RECORDS IN SOME EYES LOBBYING FOR THAT MANY POSITIONS AT ONCE HAS TO BE A REAL CHALLENGE I WONDER MYSELF HOW YOU WOULD HANDLE ALL OF THAT SAYS JULIA NORRELL WHO RUNS A RELATIVELY SMALL LOBBYING SHOP THAT REPRESENTS AMONG OTHERS THE HEALTH INSURANCE ASSOCIATION OF AMERICA AND THE NATIONAL ASSOCIATION OF CHAIN DRUG STORES IT WOULD BECOME DIFFICULT TO FIGURE OUT WHEN THE INTERESTS CONFLICT SHE SAYS FOR ITS PART PATTON BOGGS DOESN'T THINK IT'S SO TOUGH STUART PAPE A PARTNER AT THE FIRM SAYS THE KEY IS BEING AWARE OF POTENTIAL CONFLICTS AND BEING UPFRONT WITH ALL CLIENTS FROM THE BEGINNING CLEARLY YOU CAN'T ARGUE TWO SIDES OF THE SAME ISSUE MR PAPE SAYS BUT HEALTH CARE HAS SO MANY FACETS THAT IT IS POSSIBLE TO PUT TOGETHER A BROAD LIST OF CLIENTS IN A COMPATIBLE WAY PERHAPS MOST IMPORTANT THE CLIENTS SEEM TO AGREE AN OFFICIAL AT THE FEDERATION OF AMERICAN HEALTH SYSTEMS WHICH SPEAKS FOR THE FORPROFIT HOSPITALS SAYS PATTON BOGGS DOESN'T REPRESENT US ON THE SPECIFIC SUBJECT OF SIN TAXES SO THERE IS NO BUTTING HEADS WITH US TOBACCO A SUBSIDIARY OF SMOKELESS TOBACCO AND TABLEWINE PRODUCER UST INC LIKEWISE THE NATIONAL ASSOCIATION OF LIFE UNDERWRITERS SAYS THAT WHILE IT HAS A DIFFERENT VIEW OF TORT REFORM THAN DO THE TRIAL LAWYERS IT'S PERFECTLY CONTENT WITH PATTON BOGGS REPRESENTING BOTH SO LONG AS TWO DIFFERENT MEMBERS OF THE FIRM HANDLE THE DIFFERENT ACCOUNTS IT'S VERY CLEAR WHAT OUR CONCERNS ARE AND WE'RE COMFORTABLE THAT THEY WILL NOT BE COMPROMISED SAYS DAVID HEBERT COUNSEL FOR GOVERNMENT AFFAIRS AT THE LIFE UNDERWRITERS AN UMBRELLA GROUP FOR 143000 LIFE AND HEALTH INSURANCE AGENTS NONETHELESS SOME WATCHDOGS ARE LEFT WITH AN UNEASY FEELING THIS IS A GREAT CITY FOR RATIONALIZING SAYS FRED WERTHEIMER PRESIDENT OF THE CITIZENS' LOBBY COMMON CAUSE IT'S HARD TO SEE HOW SOME OF THESE FIRMS ARE GOING TO AVOID CONFLICTS IN A POLITICAL ERA WHEN THE TERM LOBBYIST HAS BECOME A PEJORATIVE IN THE MINDS OF MANY FIRMS TEND TO REACT STRONGLY WHENEVER THERE IS A SUGGESTION THAT THEY MIGHT HAVE AN ETHICAL PROBLEM WE'RE VERY EXPLICIT WITH ALL OUR CLIENTS ABOUT THE WORK WE DO FOR OTHERS SAYS DALE SNAPE GENERAL MANAGER OF WEXLER GROUP WE DEAL WITH THIS IN A VERY UPFRONT MANNER LIKE OTHER LOBBYISTS MR SNAPE SAYS THAT HIS FIRM HAS ON MANY OCCASIONS TURNED DOWN BUSINESS BECAUSE OF POTENTIAL CONFLICTS HE SAYS FOR INSTANCE THAT WEXLER HAS STAYED AWAY FROM REPRESENTING PURE PHARMACEUTICAL MAKERS IN THE CURRENT HEALTHCARE FIGHT BECAUSE OF THE PROSPECT OF TAKING ON CLIENTS WITH INCOMPATIBLE BELIEFS WEXLER DOES PROVIDE STRATEGIC ADVICE FOR JOHNSON & JOHNSON BUT ONLY ABOUT ONETHIRD OF THAT COMPANY'S SALES ARE FROM PHARMACEUTICALS STILL AMONG WEXLER'S OTHER CLIENTS ARE THE CATHOLIC HEALTH ASSOCIATION WHICH FAVORS RAISING EXCISE TAXES ON ALCOHOL TO FINANCE AN IMPROVED HEALTH SYSTEM AND ANHEUSERBUSCH COS WHICH HAS BEEN PUSHING HARD AGAINST HIGHER TAXES ON BEER MR SNAPE SAYS THAT THERE IS ABSOLUTELY NO CONFLICT BECAUSE THE ONLY WORK THAT WEXLER DOES FOR ANHEUSERBUSCH RELATES TO HOPS NOT HEALTH CARE DOWN THE LINE THE ISSUE OF EXCISE TAXES IS GOING TO BECOME A VERY IMPORTANT QUESTION SAYS BILL COX VICE PRESIDENT OF GOVERNMENT SERVICES AT THE CATHOLIC HEALTH ASSOCIATION AT THAT TIME IF WEXLER HAS A PROBLEM WE'LL ADDRESS IT BUT I'M NOT ANTICIPATING ANY DIFFICULTY SIMILARLY ANHEUSERBUSCH SAYS IT DOESN'T HAVE ANY TROUBLE WITH MR COX'S GROUP BEING REPRESENTED BY WEXLER DRAWING THE LINE AS TO WHAT CONSTITUTES A CONFLICT CAN BE TRICKY SOME LEGAL ETHICISTS BELIEVE THAT EVEN IF A CLIENT ISN'T WORRIED ABOUT A PARTICULAR SITUATION IT SHOULD BE ALTERED IF THERE IS MERELY A PUBLIC PERCEPTION OF A CONFLICT SAYS MONROE FREEDMAN A LAW PROFESSOR AT HOFSTRA UNIVERSITY MR FREEDMAN SAYS HE DOESN'T SUBSCRIBE TO THAT HIMSELF BUT HE SEES THE POSSIBLE ETHICAL TRAPS WHEN IT COMES TO HEALTH CARE PROBABLY THE BEST TOUCHSTONE IS WHETHER A CLIENT COULD REASONABLY FEEL A SENSE OF BETRAYAL BECAUSE OF THE WORK DONE ON BEHALF OF ANOTHER PARTY HE EXPLAINS BUT THERE ARE ALWAYS GOING TO BE GRAY AREAS LOBBYING FIRMS PROMISE THAT AS CONGRESS MAKES CHANGES TO THE CLINTON HEALTH PLAN THEY WILL BE ALERT TO ANY CONFLICTS THAT MAY SUDDENLY EMERGE THIS IS A LONG MARCH HERE SAYS BILL OLDAKER WHOSE NEW LOBBYING FIRM OF OLDAKER RYAN & LEONARD DOES WORK FOR PHARMACEUTICAL MAKER PFIZER INC AS WELL AS AN ALLIANCE OF LARGE INSURANCE COMPANIES I ONCE REPRESENTED CABLE TELEVISON AND THE TELEPHONE COMPANIES TOGETHER FOR A NUMBER OF YEARS HE SAYS UNDER TODAY'S CIRCUMSTANCES THAT WOULD BE IMPOSSIBLE PATTON BOGGS & BLOW'S HEALTHCARE CLIENTS 9310040036 931004 BUSINESS BRIEF THAI AIRWAYS INTERNATIONAL REVENUE RISE IS EXPECTED BUT PRETAX PROFIT TO DROP THE NEW PRESIDENT OF THAI AIRWAYS INTERNATIONAL SAID HE EXPECTS REVENUE OF 59 BILLION BAHT 234 BILLION FOR THE FISCAL YEAR THAT ENDED THURSDAY AND PRETAX PROFIT OF 17 BILLION TO 19 BILLION BAHT SPEAKING AT A CEREMONY FRIDAY AT WHICH HE TOOK THE HELM OF THE BELEAGUERED FLAG CARRIER THAMNOON WANGLEE SAID REVENUE FOR THE 1994 FISCAL YEAR WILL RISE 10 TO 65 BILLION BAHT ANALYSTS CALLED THE REVENUE ESTIMATE REALISTIC NOTING THE FIGURE FOR THE YEAR JUST FINISHED WOULD BE UP 7 FROM 55 BILLION BAHT A YEAR AGO HOWEVER THEY WERE STUNNED BY THE PRETAX PROFIT FIGURE WHICH WOULD BE DOWN 61 FROM THE 44 BILLION BAHT THAI AIRWAYS POSTED IN FISCAL 1992 FOR NET PROFIT MOST ANALYSTS EXPECT THAI AIRWAYS TO EARN 14 BILLION15 BILLION BAHT IN FISCAL 1993 DOWN FROM THREE BILLION BAHT IN FISCAL 1992 9310040035 931004 BUSINESS BRIEF APPLIED MAGNETICS CORP OPERATING LOSS IS ESTIMATED FOR THE FISCAL 4TH QUARTER APPLIED MAGNETICS CORP SAID IT EXPECTS TO POST AN OPERATING LOSS FOR THE FOURTH QUARTER ENDED THURSDAY AND ANTICIPATES REMAINING IN THE RED THROUGH THE FIRST QUARTER OF FISCAL 1994 CITING CONTINUING TURMOIL IN THE DISKDRIVE INDUSTRY THE COMPANY SAID IT ALSO PLANS TO TAKE AN EXTRAORDINARY CHARGE OF 50 MILLION IN FISCAL 1993 FOR RESTRUCTURING ITS OPERATIONS THE CHARGE INCLUDED ANTICIPATED COSTS OF RESTRUCTURING CERTAIN MANUFACTURING OPERATIONS AND THE OBSOLESCENCE OF SOME OF ITS MANUFACTURING EQUIPMENT IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE APPLIED MAGNETICS SHARES PLUNGED 225 TO CLOSE AT 6875 ON VOLUME OF 312100 SHARES ACCORDING TO THE GOLETA CALIF MAKER OF RECORDING HEADS THE FISCAL 1993 LOSS IS ATTRIBUTABLE MAINLY TO LARGER THAN ANTICIPATED REDUCTIONS IN SHIPMENTS 9310040034 931004 BUSINESS BRIEF FIGGIE INTERNATIONAL INC COMPANY EXPECTS TO POST LOSS FOR THE THIRD QUARTER FIGGIE INTERNATIONAL INC CITING THE FLOODING IN THE MIDWEST SAID IT EXPECTS TO REPORT A LOSS FOR THE THIRD QUARTER IN THE YEARAGO PERIOD FIGGIE EARNED 45 MILLION OR 26 CENTS A SHARE FIGGIE SAID THE FLOODING CAUSED DAMAGE AND AN INTERRUPTION OF BUSINESS AT THREE SNORKELECONOMY MANUFACTURING FACILITIES IN KANSAS THE UNIT MAKES POWERED MOBILE WORK PLATFORMS AND HYDRAULIC LIFTS FOR FIRE TRUCKS WHILE THE COMPANY IS FILING A SUBSTANTIAL INSURANCE CLAIM IT SAID IT CAN'T PREDICT THE TIMING OR SIZE OF ANY RECOVERIES FIGGIE ALSO SAID THAT CONTINUED DEPRESSED SALES AT SEVERAL OPERATING DIVISIONS INCLUDING ITS TENNIS WEAR UNIT IN THE UNITED KINGDOM AND TWO SUBSIDIARIES THAT MAKE PROTECTIVE CLOTHING HURT RESULTS MOREOVER THE TENNIS WEAR UNIT WAS HURT BY A PURCHASING PROBLEM THAT FORCED IT TO MISS SALES IN THE SPRING AND SUMMER SEASONS FIGGIE CALLED THE INCIDENT ISOLATED ALSO RESTRUCTURING CHARGES FROM THE COMPANY'S COSTCUTTING EFFORTS HURT RESULTS 9310040033 931004 SPORTS AN ICY SPORT HEADS SOUTH TO MAKE IT HOPES ITS FORTUNE BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS AS THE DALLAS STARS THE ICE HOCKEY TEAM FORMERLY KNOWN AS THE MINNESOTA NORTH STARS MOVE SOUTH AFTER A STRING OF MONEYLOSING SEASONS UP NORTH THE SUN BELT IS WATCHING DOES A SPORT BORN IN THE FROZEN NORTH HAVE A CHANCE IN THE BALMY SOUTH WHERE FOOTBALL IS KING THIS SPORT HAS HISTORICALLY HAD THE PERCEPTION OF BEING A REGIONAL SPORT ACKNOWLEDGES GARY BETTMAN THE NATIONAL HOCKEY LEAGUE'S ROOKIE COMMISSIONER THE BROADER OUR FOOTPRINT THE MORE DESIRABLE WE BECOME AS A NETWORK PRODUCT THE NETWORK HE'S REFERRING TO IS NETWORK TELEVISION THE NHL HASN'T HAD A FULLBLOWN TV CONTRACT WITH ONE OF THE THREE MAJOR NETWORKS FOR 13 YEARS LARGELY BECAUSE PROGRAMMERS FELT THE SPORT'S APPEAL WAS CONFINED TO CANADA AND THE WINTRY PORTIONS OF THE US THE RATINGS SEEM TO CONFIRM THAT IN A LIMITED SCHEDULE OF FIVE STANLEY CUP PLAYOFF GAMES AIRED ON SUNDAYS ON ABC LAST YEAR NHL BROADCASTS AVERAGED A 17 RATING SAYS AC NIELSEN CO COMPARED WITH 34 FOR REGULAR SEASON BASEBALL ON SATURDAYS ON CBS EACH RATING POINT REPRESENTS 931000 HOMES THE NHL SEASON BEGINS TOMORROW THIS YEAR SIX OF THE LEAGUE'S GAMES WILL AIR ON ABC 26 GAMES PLUS MOST OF THE PLAYOFFS WILL BE ON ESPN THE CABLE SPORTS SERVICE AND ANOTHER 80 OR SO WILL BE ON THE NEW ESPN2 SHARING TIME WITH YOUTHORIENTED SPORTS SUCH AS SURFING AND SNOWBOARDING LIMITED EXPOSURE AND ITS IMAGE AS A FAVORITE OF BLUECOLLAR BRUTES HAVE MADE HOCKEY A MARGINAL PROFESSIONAL SPORT TO COMBAT THAT IMAGE THE NHL OFFERS DATA SHOWING THAT ITS FANS REPRESENT ONE OF TV'S MOST PRIZED AUDIENCES PRIMARILY WELLEDUCATED AFFLUENT MALES AGED 18 TO 34 THAT IS EXACTLY THE KIND OF ENCOURAGING TREND THE LEAGUE IS LOOKING FOR AN ABC SPORTS SPOKESMAN SAYS BUT BEFORE NETWORKS WELCOME BACK A FULL HOCKEY SCHEDULE THEY WANT TO SEE A BROADER NATIONAL AUDIENCE THUS THE NHL HAS BEEN BRINGING HOCKEY TO THE SUN BELT ADDING FOUR EXPANSION TEAMS AND THE RELOCATED STARS SINCE THE 199192 SEASON THE NEW TEAMS ARE BUCKING A LIMITED AND UNIMPRESSIVE HISTORY THE LOS ANGELES KINGS A PRODUCT OF ANOTHER LEAGUE EXPANSION 26 YEARS AGO HAVE ENJOYED ONLY MODEST FINANCIAL SUCCESS UNDER OWNER BRUCE MCNALL WHO SAYS THE TEAM WAS LOSING MONEY WHEN HE BOUGHT IT FIVE YEARS AGO THE FLAMES LEFT ATLANTA FOR CALGARY IN 1980 AFTER A BRIEF UNSUCCESSFUL STAY WHILE THE SUN BELT EXPANSION TEAMS IN THE PREVIOUS TWO YEARS HAVE YET TO TURN A PROFIT HOPES ARE HIGH FOR THIS YEAR'S ENTRIES THE MIGHTY DUCKS OF ANAHEIM ARE OWNED BY WALT DISNEY CO AND NAMED FOR A DISNEY MOVIE ABOUT A PEEWEE HOCKEY TEAM ALREADY MIGHTY DUCKS MERCHANDISE IS BEING SOLD AT DISNEY'S EXTENSIVE RETAIL CHAIN AND THE TEAM HAS SOLD 12000 SEASON TICKETS MEANWHILE FLORIDA PANTHERS OWNER H WAYNE HUIZENGA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BLOCKBUSTER ENTERTAINMENT CORP HAS SOLD ABOUT 8500 SEASON TICKETS WITH AGGRESSIVE MARKETING INCLUDING RENTING INTRODUCTORY HOCKEY VIDEOS AT BLOCKBUSTER'S SOUTH FLORIDA OUTLETS FOR 50 CENTS HAVING BLOCKBUSTER AND DISNEY WAS ALMOST A NO BRAINER MR BETTMAN SAYS WHEN YOU DEAL WITH TWO OF THE GREAT MARKETING COMPANIES IN THE WORLD YOU KNOW IT'S GOING TO BE SUCCESSFUL BUT THE TOUGHEST TEST OF THE LEAGUE'S SOUTHERN STRATEGY AND ONE OF THE MOST IMPORTANT WILL PROBABLY COME HERE IN FOOTBALLSMITTEN DALLAS THE NATION'S EIGHTHLARGEST MEDIA MARKET THE STARS STARTED TRAINING CAMP SEPT 11 AMID AN AGGRESSIVE PUSH TO SELL TICKETS BUT NEWS OF THE TEAM WAS BURIED BY THE START OF THE DALLAS COWBOYS' POSTSUPER BOWL SEASON AND THE PSYCHODRAMA SURROUNDING THE SIGNING OF STAR RUNNING BACK EMMITT SMITH ALL OF THE INTEREST IN THIS TOWN IS FOCUSED ON THE COWBOYS SAYS NYE LAVALLE CHAIRMAN OF SPORTS MARKETING GROUP/DALLAS A MARKET RESEARCH CONSULTING COMPANY IN DALLAS TO WHIP UP INTEREST AND EDUCATE THE NATIVES THE STARS HAVE BEGUN AN ADVERTISING CAMPAIGN THAT ITS MARKETING PEOPLE CALL HOCKEY 101 A FULLPAGE AD IN THE DALLAS MORNING NEWS ON SEPT 12 DESCRIBED THE DIMENSIONS OF THE RINK THE POSITIONS ON THE TEAM THE REFEREES' SIGNALS AND OTHER HOCKEY MINUTIAE THE STARS' OWNER NORMAN GREEN A CANADIAN REAL ESTATE DEVELOPER DIDN'T PARTICULARLY LIKE THE REMEDIAL EDUCATION APPROACH ARGUING THAT THE SPORT'S FAST PACE AND PHYSICAL ACTION WOULD ATTRACT FANS BUT THE STARS HAD TWO OTHER CAMPAIGNS AS WELL ON BILLBOARDS RADIO AND TELEVISION BUILT AROUND ARCTIC THEMES THE COLD WAR BEGINS AND THE ICE OF TEXAS HOCKEY ISN'T COMPLETELY ALIEN TO THE CITY SINCE 1986 LOCAL SPORTS PROMOTER BRAD THOMAS HAS STAGED ANNUAL NHL EXHIBITION GAMES FEATURING TOP TEAMS WHICH HE SAYS WERE ALWAYS SUCCESSFUL FINANCIALLY AND THE CITY ALREADY HAS A MINOR LEAGUE HOCKEY TEAM THE DALLAS MORNING NEWS THE CITY'S ONLY DAILY NEWSPAPER HAS HIRED A FULLTIME HOCKEY WRITER FROM THE NEW YORK METROPOLITAN REGION TO COVER THE STARS AND HAS BEEN RUNNING REGULAR EXPLANATORY FEATURES ABOUT HOCKEY MANAGING EDITOR BOB MONG SAYS THE PAPER STEPPED UP ITS COVERAGE WHILE MR GREEN WAS NEGOTIATING TO MOVE THE TEAM EARLY THIS YEAR AND CONDUCTED A SURVEY IN FEBRUARY THAT DETERMINED THAT READERS HAD A LOT OF INTEREST IN THE SPORT MR GREEN SAYS THAT SO FAR HE'S PLEASED WITH THE TEAM'S RECEPTION HERE A FREE HOCKEYFEST DESIGNED TO ACQUAINT FANS WITH THE TEAM AND THE SPORT DREW ABOUT 5000 FANS SEPT 20 AND THE STARS HAVE SOLD 7500 SEASON TICKETS INCLUDING 16 TO FORMER DALLAS COWBOYS QUARTERBACK ROGER STAUBACH FOR HIMSELF AND HIS REAL ESTATE COMPANY COMPARED WITH JUST 5300 LAST YEAR IN MINNESOTA OVERALL MR GREEN EXPECTS TO BREAK EVEN THIS YEAR AFTER LOSSES OF 20 MILLION OVER THE PAST THREE YEARS WHICH HE BLAMES ON STIFF COMPETITION FROM MINNESOTA'S COLLEGE AND HIGHSCHOOL HOCKEY PROGRAMS AND A 3 MILLIONAYEAR ARENA RENT TAB MR GREEN WON'T DISCLOSE HIS DALLAS RENT BUT SAYS IT'S A LOT LESS THAN HE PAID IN MINNESOTA STILL NOT EVERYONE IS CONVINCED THAT THE STARS WILL SUCCEED HERE EXPANSION AND RELOCATED TEAMS GENERALLY ENJOY A RUSH OF ENTHUSIASM FROM CURIOUS FANS THE FIRST YEAR OR TWO AND WHILE MR GREEN IS PLEASED WITH SEASONTICKET SALES THEY HAVE FALLEN WELL SHORT OF THE 12500 THAT MARKETING STUDIES SAID THE MARKET COULD BEAR IT MIGHT TAKE A YEAR OR TWO TO REACH THAT MARK HE CONCEDES BASED ON HIS EXPERIENCE PROMOTING HOCKEY GAMES HERE MR THOMAS WONDERS WHETHER FANS WILL CONTINUE TO PAY THE HIGH PRICES AN AVERAGE OF 30 A PERSON ONE OF THE LEAGUE'S HIGHEST UP FROM ABOUT 21 A YEAR AGO AND MR LAVALLE THE MARKETING CONSULTANT CALLS THE STARS' MOVE TO DALLAS NOT A SMART MOVE A SPORTS AND LIFESTYLE SURVEY CONDUCTED BY HIS COMPANY LAST YEAR INDICATED THAT SPECTATOR INTEREST IN ICE HOCKEY WAS WEAKEST IN TEXAS ARKANSAS AND LOUISIANA MR LAVALLE ALSO NOTES THAT WITH THE FOOTBALL COWBOYS BASEBALL RANGERS AND BASKETBALL MAVERICKS ALREADY HERE THE STARS ARE ENTERING A CROWDED MARKET BUT MR GREEN IS UNDETERRED HE MOVED HERE EVEN THOUGH HE DIDN'T GET THE BIG SUBSIDIES HE EXPECTED FROM THE CITY IN FACT HE HAD TO SPEND MORE THAN 5 MILLION TO UPGRADE THE DOWNTOWN REUNION ARENA FOR HOCKEY THE FUTURE OF THE GROWTH POTENTIAL WAS HERE IN TE SOUTH HE INSISTS THIS IS HOCKEY'S NEW FRONTIER 9310040032 931004 LETTERS TO THE EDITOR RISK CAPACITY BERMUDA STYLE YOUR EXCELLENT AUG 31 PAGE ONE ARTICLE ABOUT BERMUDA INSURERS DRAINING BUSINESS FROM THE LONDON MARKET HIGHLIGHTS AN IMPORTANT LESSON FOR THE INSURANCE COMMUNITY WHEN THE PROTECTION NEEDS OF THE INSURED AREN'T MET NEW MARKETS WILL BE INVENTED FOR TOO LONG THE TRADITIONAL INSURANCE INDUSTRY HAS THOUGHT THAT IT WAS IMMUNE TO NEW COMPETITION NOW MORE INNOVATIVE SOURCES OF CAPITAL INCLUDING SOME OUTSTANDING INSURANCE COMPANIES HAVE RECOGNIZED THAT THEY CAN SERVE A VALUABLE AND UNMET NEED BY FORMING RISK CAPACITY IN BERMUDA SOPHISTICATED INSURANCE BUYERS AND INVESTORS AREN'T WORRIED ABOUT DOING BUSINESS IN BERMUDA BECAUSE MANY HAVE ALREADY HAD POSITIVE EXPERIENCES WITH THE REGULATORY CLIMATE AND THE PROFESSIONAL SERVICE PROVIDERS AND BANKS IN FACT MANY OF THE CUSTOMERS OF THE NEW BERMUDA COMPANIES ALREADY DO BUSINESS THERE ALTHOUGH WE HAVE TO CAREFULLY WATCH THE FINANCIAL STABILITY OF THESE NEW INSURERS ON BEHALF OF OUR CLIENTS WE ARE ENCOURAGED THAT THEY ARE OWNED BY QUALITY INVESTORS AND THAT THEY HAVE CHOSEN A QUALITY DOMICILE FOR THEIR ACTIVITIES 9310040031 931004 BUSINESS BRIEF HEALTHTRUST INC OPERATOR OF 3 UTAH HOSPITALS TO BE PURCHASED BY FIRM HEALTHTRUST INC NASHVILLE TENN SAID IT SIGNED A LETTER OF INTENT TO PURCHASE HOLY CROSS HEALTH SERVICES OF UTAH WHICH OPERATES THREE HOSPITALS IN THE STATE TERMS WEREN'T DISCLOSED THE TRANSACTION IS EXPECTED TO BE COMPLETED BY THE END OF DECEMBER HOLY CROSS IS A UNIT OF HOLY CROSS HEALTH SYSTEM CORP A NONPROFIT ORGANIZATION SPONSORED BY THE CONGREGATION OF THE SISTERS OF THE HOLY CROSS IN NOTRE DAME IND THE PARENT OPERATES NINE HEALTHSERVICES CORPORATIONS IN SIX STATES HEALTHTRUST OPERATES HOSPITALS AND HEALTHCARE FACILITIES IN 21 STATES THE THREE HOSPITALS IN UTAH ARE THE 200BED HOLY CROSS HOSPITAL OF SALT LAKE CITY THE 50BED HOLY CROSS HOSPITALJORDAN VALLEY IN WEST JORDAN AND THE 204BED ST BENEDICT'S HOSPITAL IN OGDEN 9310040030 931004 BUSINESS BRIEF AVEMCO CORP INSURER AND ITS OFFICIALS BUY BACK SHARES FROM GEICO AVEMCO CORP AN INSURANCE COMPANY BASED IN FREDERICK MD SAID IT REPURCHASED 23 MILLION OF ITS SHARES FROM GEICO CORP WHILE TWO INSTITUTIONAL INVESTORS AND AVEMCO'S OFFICERS DIRECTORS AND PROFITSHARING PLAN BOUGHT ANOTHER 990000 SHARES FROM GEICO THE TRANSACTIONS BASED ON A SALE PRICE OF 1750 A SHARE LEAVE GEICO A WASHINGTON INSURANCE COMPANY WITH 600000 AVEMCO SHARES TWO GEICO DIRECTORS WHO SAT ON AVEMCO'S BOARD HAVE GIVEN UP THEIR SEATS IN CONNECTION WITH THE SALE AVEMCO SAID IT FINANCED ITS SHARE OF THE PURCHASE WITH A BANK LINE OF CREDIT AND INTERNAL FUNDS THE CLOSING ON ALL BUT 40000 SHARES TOOK PLACE FRIDAY AND THE REMAINDER WILL CLOSE THIS WEEK AS OF JUNE 30 AVEMCO HAD 114 MILLION SHARES OUTSTANDING 9310040029 931004 BUSINESS BRIEF XEROX SEEKING TO CUT COSTS MAY SHIFT SOME OPERATIONS TO OUTSIDE VENDORS STAMFORD CONN XEROX CORP SAID IT IS STUDYING A PLAN UNDER WHICH OUTSIDE VENDORS WILL HANDLE PARTS OF ITS SIZABLE INFORMATION MANAGEMENT OPERATIONS AN INCREASINGLY POPULAR MEASURE AMONG LARGE CORPORATIONS EAGER TO CUT COSTS IF UNDERTAKEN A SUBSTANTIAL OUTSOURCING PLAN WOULD ENABLE XEROX TO CONTINUE NARROWING ITS FOCUS ON ITS CORE DOCUMENT PROCESSING BUSINESS IT ALSO COULD LEAD TO THE EVENTUAL TRANSFER OF MANY OF THE 3500 EMPLOYEES WHO HANDLE XEROX'S COMPUTER AND NETWORK SERVICES WE DON'T HAVE PLANS FOR A LARGE NUMBER OF LAYOFFS BUT ALMOST BY DEFINITION AN OUTSOURCING AGREEMENT COULD LEAD TO A TRANSFER OF PARTS OF THE INFORMATION MANAGEMENT STAFF TO OUTSIDE VENDORS A XEROX SPOKESMAN SAID 2000 WORKERS XEROX'S US INFORMATION MANAGEMENT OPERATIONS EMPLOY 2000 PEOPLE OF WHOM 1600 WORK IN THE GREATER ROCHESTER NY AREA THESE EMPLOYEES PROVIDE COMPUTER AND NETWORK SERVICES TO XEROX'S ORDER PROCESSING CUSTOMER SERVICE PAYROLL INVENTORY MANAGEMENT AND OTHER OPERATIONS A LOT OF COMPANIES ARE LOOKING AT THE IDEA OF OUTSOURCING ASPECTS OF THEIR OPERATIONS NOT CRITICAL TO THEIR BUSINESS SAID EUGENE GLAZER ANALYST AT DEAN WITTER REYNOLDS WHEN YOU GIVE THESE OPERATIONS OVER TO SPECIALISTS THERE USUALLY ARE COST SAVINGS XEROX IN FACT IS ITSELF A MAJOR PROVIDER OF OUTSOURCED SERVICES IN 1992 THE COMPANY REPORTED 500 MILLION IN REVENUE FROM MANAGING THE COPY CENTERS AND MAILROOMS OF ABOUT 1000 CORPORATE CUSTOMERS AS WELL AS OPERATING OTHER COPY SERVICE CENTERS XEROX'S CORE DOCUMENT PROCESSING REVENUE TOTALED 147 BILLION THAT YEAR OUT OF COMPANYWIDE REVENUE OF 182 BILLION THE POPULARITY OF OUTSOURCING HAS ENGENDERED A LUCRATIVE MARKET FOR PROVIDERS OF SUCH SERVICES AS WELL ONE OF PITNEY BOWES INC'S FASTEST GROWING BUSINESSES FOR INSTANCE IS ITS UNIT THAT PRIMARILY MANAGES CORPORATE MAILROOMS INTERNATIONAL BUSINESS MACHINES CORP ALSO HAS IDENTIFIED INFORMATION TECHNOLOGY SERVICES AS ONE OF ITS KEY BUSINESSES AS IT STRUGGLES TO OVERCOME THE DECLINE OF ITS MAINFRAME COMPUTER BUSINESS LATE LAST YEAR THE COMPUTER MAKER WON A 10YEAR 3 BILLION CONTRACT TO PROVIDE INFORMATION SERVICES TO MCDONNELL DOUGLAS CORP TRIM TO 20 FOR XEROX WHOSE EARNINGS HAVE BEEN HURT BY THE MORIBUND ECONOMIES OF THE US AND EUROPE AS WELL AS A DISRUPTIVE PLAN TO REORGANIZE ITS SALES FORCE A PROPOSAL TO OUTSOURCE ITS INFORMATION MANAGEMENT OPERATIONS WOULD BE REAL POSITIVE SAID ANALYST ALEX B HENDERSON OF PRUDENTIAL SECURITIES RESEARCH ACCORDING TO MR HENDERSON ABOUT 25 OF XEROX'S COSTS RELATE TO NONPRODUCTION SUPPORTSTAFF OPERATIONS AND THE COMPANY WANTS TO REDUCE THE COSTS TO LESS THAN 20 IN ITS EFFORT TO PARE COSTS XEROX COULD LAY OFF ADDITIONAL EMPLOYEES BEYOND THOSE WHO COULD BE TRANSFERRED AS A RESULT OF AN OUTSOURCING PLAN HE SAID HE ESTIMATES THAT XEROX WOULD HAVE TO TAKE A CHARGE OF BETWEEN 150 MILLION TO 175 MILLION IF IT LAID OFF ABOUT 1500 EMPLOYEES 9310040028 931004 LETTERS TO THE EDITOR PC VICTIMS UNITE SCOTT GOTTLIEB'S SEPT 27 EDITORIAL PAGE ARTICLE A MOCKERY OF JUSTICE ON CAMPUS CLEARLY DESCRIBED THE ABUSES INFLICTED BY KANGAROO COURTS ENFORCING POLITICAL CORRECTNESS AT WESLEYAN BROWN WILLIAMS AND OTHER UNIVERSITIES HOWEVER HIS PRESCRIPTION FOR A CURE NEW LEGISLATION BY CONGRESS COULD BE WORSE THAN THE DISEASE AND WON'T CHANGE A THING IF THE INSANITY IS TO END IT WILL BE BECAUSE DISCERNING WHITE MALES THE VICTIMS OF PC WILL CHOOSE TO SPEND THEIR TUITION DOLLARS AT SCHOOLS THAT STILL ENCOURAGE THE FREE EXCHANGE OF IDEAS SUCH AS HILLSDALE AND GROVE CITY LIKEWISE DISCERNING WHITE MALE ALUMNI SHOULD WITHHOLD FUNDS FROM THEIR OFFENDING ALMA MATERS A GOOD DOSE OF CAVEAT EMPTOR IS THE BEST HOPE FOR A PERMANENT CURE 9310040027 931004 ABREAST OF THE MARKET IMPACT OF RUSSIAN CRISIS IS EXPECTED TO BE LIMITED IN US WORSE IN EUROPE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL US MARKET STRATEGISTS EXPECT SUNDAY'S OUTBREAK OF CHAOS ON THE STREETS OF MOSCOW TO TAKE ONLY A LIMITED TOLL ON STOCK AND BOND PRICES TODAY WITH MOST OF THE DAMAGE FELT IN EUROPEAN MARKETS ESPECIALLY GERMANY'S BUT ANY FURTHER ESCALATION OF STREET VIOLENCE LEADING TO AN ACCELERATING BREAKDOWN OF AUTHORITY IN MOSCOW COULD HAVE A LONGERTERM MORE SEVERE IMPACT ON THE ALREADY JITTERY US STOCK AND BOND MARKETS THE DOLLAR GOLD AND DEFENSE STOCKS COULD JUMP TODAY AS THESE FAMILIAR HAVENS FOR INVESTORS BENEFIT FROM THE RUSSIAN TURMOIL VETERAN INVESTORS SAY IN TOKYO TRADING TODAY THE DOLLAR GAINED A BIT LESS THAN TWO PFENNIGS AGAINST THE MARK EDGINESS IN ALL FINANCIAL MARKETS THROUGHOUT THE WORLD WILL SHOW UP IN FAIRLY STRONG CAPITAL FLOWS FROM EUROPE TO THE US SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER FIRST ALBANY CORP THIS COULD TEMPER ANY SERIOUS DOWN MOVE IN THE US MARKETS MOREOVER IN HIS VIEW RUSSIAN LEADER BORIS YELTSIN STILL APPEARS TO HAVE THE UPPER HAND THIS IS NOT AS IMPORTANT FOR US AS IT IS FOR EUROPE SAID PETER CANELO NATWEST SECURITIES CHIEF MARKET STRATEGIST PEOPLE WILL BE SWITCHING OUT OF EUROPEAN INVESTMENTS THEY'LL WANT TO GET AS FAR AS THEY CAN FROM EUROPE AND MOVE INTO DOLLARDENOMINATED ASSETS THE MAXIMUM DOWNSIDE RISK WE'RE LOOKING AT IN THE US IS A 2 TO 3 MOVE DOWNWARD IN THE DOW JONES INDUSTRIAL AVERAGE MR CANELO PREDICTS AND I THINK WE'LL RECOUP THAT PRETTY QUICKLY AS WAS THE CASE FOLLOWING THE FAILED COUP ATTEMPT AGAINST FORMER SOVIET LEADER MIKHAIL GORBACHEV IN AUGUST 1991 IN HIS VIEW ANY SUCH STOCK MARKET SELLOFF COULD BE A BUYING OPPORTUNITY MUTUALFUND PHONE SWITCHBOARDS STAYED CALM OVER THE WEEKEND IT'S PRETTY MUCH ANOTHER QUIET SUNDAY SAID A SPOKESWOMAN FOR FIDELITY INVESTMENTS IN BOSTON INVESTORS ARE DOING WHAT WE'RE DOING STAYING HOME AND WATCHING CNN EXPERIENCE HAS TAUGHT INVESTORS THAT EVEN IF THEY YANK MONEY OUT OF A FUND WITH A WEEKEND PHONE CALL THEIR TRANSACTIONS DON'T TAKE EFFECT UNTIL THE MARKET CLOSES MONDAY IT'S A DETERRENT TO WEEKEND PORTFOLIO SHUFFLING ANALYSTS AGREE THAT GERMANY'S MARKETS AND CURRENCY ARE ESPECIALLY VULNERABLE IN LIGHT OF THE COUNTRY'S PROXIMITY AND ECONOMIC TIES TO RUSSIA THE DOLLAR WILL GO BALLISTIC ON THE UPSIDE AND THE MARK WILL BE HIT THE WORST PREDICTS RICHARD MEDLEY MANAGING DIRECTOR OF ATHENA FUND A GREENWICH CONN MONEY MANAGEMENT FIRM THAT INVESTS IN INTERNATIONAL STOCKS BONDS AND CURRENCIES GERMANY WILL BE HIT AS PEOPLE BEGIN TO IMAGINE THE POTENTIAL FOR MASSES OF REFUGEES FLOODING INTO THE COUNTRY MR MEDLEY FORMERLY WITH GEORGE SOROS'S QUANTUM FUND SAID THE SITUATION IN THE RUSSIAN CAPITAL COULD PROVE MORE PROTRACTED AND UNNERVING THAN MANY US INVESTORS WOULD LIKE TO THINK WHAT HAD LOOKED LIKE A SETTLED SITUATION ONE IN WHICH BORIS YELSTIN WOULD WIN NOW LOOKS COMPLETELY UNSETTLED AND IS ONE IN WHICH YELTSIN'S CHANCES OF LOSING HAVE GREATLY INCREASED HE SAID THIS DRAMATICALLY INCREASES THE UNCERTAINTY THAT THE MARKETS WILL HAVE TO DEAL WITH MARKETS HATE UNCERTAINTY OF COURSE AND THIS TIME THE UNCERTAINTY WILL EXTEND TO THE WASHINGTON SCENE THE RUSSIAN UNREST AND THE POSSIBILITY OF THE UNSEATING OF MR YELTSIN AND HIS PUSH TOWARD ECONOMIC REFORM RAISES THE SPECTER OF A SLOWDOWN IN CONGRESS'S PLANNED CUTBACK OF MILITARY OUTLAYS THIS IN TURN COULD UNDERMINE CONFIDENCE IN US CAPITAL MARKETS ABOUT WHETHER THE US WILL BE ABLE TO CUT ITS BUDGET DEFICIT THE SITUATION IN MOSCOW RAISES SOME SERIOUS QUESTIONS ABOUT REDUCTIONS IN DEFENSE SPENDING AND WHETHER CONGRESS WILL BE ABLE TO REACH ITS DEFICTREDUCTION GOALS SAID FIRST ALBANY'S MR JOHNSON THIS IS NEGATIVE FOR BONDS AND NEGATIVE FOR INTERESTRATESENSITIVE STOCKS UTILITIES INSURANCE COMPANIES AND SOME BANKS ANALYSTS LOOK FOR SIGNS OF A REVIVAL IN US DEFENSE AND AEROSPACE STOCKS SOME THINK THE GROUP COULD SHOW INCREASING STRENGTH AS THE MOSCOW CRISIS UNFOLDS THERE HAS BEEN MASSIVE CONSOLIDATION IN THE DEFENSE INDUSTRY ALREADY SAYS CHARLES CLOUGH MERRILL LYNCH'S CHIEF INVESTMENT STRATEGIST IN NEW YORK THAT HAS IMPROVED PROFITABILITY SUCH THAT THE GROUP HAS BEEN OUTPERFORMING THE BROADER MARKET IN RECENT WEEKS AND NOW WITH EVENTS IN RUSSIA TAKING A NASTY TURN I SUSPECT DEFENSE STOCKS WILL CONTINUE TO OUTPERFORM THE RUSSIAN CONFLICT IS OCCURRING JUST WHEN MANY INVESTORS ARE ALREADY FRETTING ABOUT HOW HIGH STOCK PRICES SEEM IT'S AN ELEMENT OF UNCERTAINTY AT A TIME WHEN OUR MARKETS ARE ALREADY AT ELEVATED LEVELS SAID MR CLOUGH RUSSIA IS AFTER ALL A NUCLEAR POWER AND WHEN ITS POLITICAL EVOLUTION IS THIS CONFUSED THE MARKETS WILL AT LEAST TEMPORARILY REACT IF THERE IS A SELLOFF I DON'T THINK IT WILL LAST BUT IF THE SITUATION CONTINUES TO DETERIORATE AND BECOMES MORE DANGEROUS THEN I JUST DON'T KNOW AS FOR US CREDIT MARKETS ANALYSTS EXPECT AT LEAST A TEMPORARY UPTICK IN THE YIELD OF THE US LONGTERM BOND NOW AT 599 LOOKING AHEAD TWO FACTORS WILL BE BATTLING IN THE BOND MARKET A FEARDRIVEN FLIGHT TO US INVESTMENTS COULD BE GOOD FOR US BOND PRICES BUT THE INFLATIONARY POTENTIAL OF HIGHER SPENDING ON US MILITARY MUSCLE COULD BE BAD PRICES MOVE IN THE OPPOSITE DIRECTION OF YIELDS NEWS REPORTS COULD CONTINUE TO ROCK THE MARKETS SEVERAL POLITICAL COMMENTATORS YESTERDAY SAID THE EVENTS IN RUSSIA WERE ALARMING AND UNLIKELY TO BE EPHEMERAL WILLIAM HYLAND PROFESSOR OF INTERNATIONAL RELATIONS AT GEORGETOWN UNIVERSITY AND A FORMER SENIOR OFFICIAL IN THE NATIONAL SECURITY COUNCIL SAID IN AN INTERVIEW WHEN A MOB STORMS A NATIONAL TELEVISION STATION YOU'RE GETTING PRETTY CLOSE TO A BANANA REPUBLIC TYPE SITUATION THE KEY IS THE ARMY IF THE ARMY REFUSES TO ROUT THE MOB THEN THE MOB WINS AND YOU COULD HAVE A CIVIL WAR GOLD PRICES COULD BE LIFTED NOT ONLY BECAUSE OF INVESTORS IN EUROPE AND ELSEWHERE WANT A HAVEN FOR THEIR FINANCIAL ASSETS ANALYSTS SAID BUT ALSO BECAUSE THE RUSSIAN GOVERNMENT WHICH HAS BEEN A REGULAR SELLER OF GOLD RESERVES INTO THE MARKET IN RECENT MONTHS MAY TEMPORARILY CEASE SELLING THE METAL THE PRICE WILL GO HIGHER MAYBE BY 10 AN OUNCE IN NEW YORK TODAY PREDICTED JEFFREY CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A NEW YORK PRECIOUSMETALS CONSULTANT THE MAIN REASON FOR THE SURGE HE PREDICTED WILL BE A DRYING UP OF OFFICIAL GOLD SALES FROM RUSSIA AMID THE APPARENT LOSS OF CENTRAL AUTHORITY RUSSIA'S GOLD IS IMPORTANT TO THE MARKET MR CHRISTIAN SAID AND THE LOSS OF AUTHORITY WILL LEAD TO A SHORTTERM DECLINE IN RUSSIAN GOLD SALES FOR NOW US INVESTORS WHETHER IN THE STOCK BOND CURRENCY OR COMMODITY MARKETS SHOULD KEEP A CLOSE EYE ON THE SAGA UNFOLDING IN MOSCOW RECOMMENDS AC MOORE A PORTFOLIO MANAGER WITH ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF THE NEWS FROM MOSCOW REPRESENTS A BUYING OPPORTUNITY IF YELTSIN GETS THE UPPER HAND QUICKLY BUT IF YELTSIN IS OVERTHROWN THAT WILL CAST A NEGATIVE PALL OVER STOCKS MR MOORE SAID FURTHER TROUBLE IN RUSSIA WOULD SET OFF A CHAIN REACTION LEADING TO HIGHER OIL AND OTHER COMMODITY PRICES AND ULTIMATELY RESULTING IN HIGHER INTEREST RATES AND LOWER STOCK PRICES HE SAID THE RUSSIAN EVENTS WILL ADD A GOOD 1 TO 150 A BARREL TO THE PRICE OF LIGHTSWEET CRUDE OIL IN NEW YORK TRADING TODAY PREDICTED PHILIP VERLEGER AN OIL EXPERT AND VISITING FELLOW WITH THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON IN THE FIRST HALF OF THIS YEAR THE FORMER SOVIET UNION EXPORTED 22 MILLION BARRELS OF OIL A DAY JUST UNDER TWOTHIRDS OF WHICH WENT TO EUROPE MR VERLEGER SAID CITING INTERNATIONAL ENERGY AGENCY STATISTICS THE REAL THREAT TO EUROPE THIS WINTER IS GAS FLOWS FROM RUSSIA IF THEY ARE DISRUPTED THE EUROPEANS FACE A SERIOUS IMBALANCE IN HEATING FUELS WHICH WILL TRANSLATE INTO MUCH HIGHER OIL PRICES IN AFTERHOURS ELECTRONIC TRADING ON THE ACCESS OVERNIGHT SYSTEM IN NEW YORK WEST TEXAS INTERMEDIATE HAD JUMPED TO 19 A BARREL UP 37 CENTS FROM ITS FRIDAY CLOSE IN EARLY TRADING IN MELBOURNE AUSTRALIA MONDAY SPOT GOLD PRICES REACHED A HIGH OF 359 AN OUNCE UP 380 FROM FRIDAY'S CLOSE OF 35520 THE MARKET'S PRETTY UNCERTAIN SAID AN AUSTRALIAN GOLD TRADER IN A TELEPHONE INTERVIEW THERE'S STRONG RESISTANCE AT THESE PRICE LEVELS BUT IF THE TANKS START FIRING WE'LL SEE THE MARKET HIT 360 AND THEN TEST 363 THE HIGH OF LAST WEEK STOCKS ROSE AS LOWER INTEREST RATES MITIGATED DISAPPOINTMENT OVER WEAK ECONOMIC DATA THE DOW JONES INDUSTRIAL AVERAGE RALLIED 2599 POINTS TO 358111 STANDARD & POOR'S 500STOCK INDEX CLIMBED 236 TO 46129 AND THE NASDAQ COMPOSITE INDEX ADDED 045 TO 76323 ADVANCING ISSUES OUTNUMBERED DECLINERS 1102 TO 886 VOLUME ON THE BIG BOARTO 256827670 SHARES FROM 280989900 SHARES THURSDAY IN THE WEEK THE DOW JONES INDUSTRIALS AND NASDAQ COMPOSITE INDEX ROSE 11 EACH AND THE S&P EDGED UP 08 STOCKS MANAGED TO POST GAINS EVEN THOUGH A REPORT FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT POINTED TO DISAPPOINTING GROWTH IN THE MANUFACTURING SECTOR LAST MONTH ANALYSTS ATTRIBUTED THE MARKET'S ADVANCE TO RELIEF THAT INTEREST RATES ARE LIKELY TO MOVE LOWER OR REMAIN STABLE IN THE COMING WEEKS THE YIELD ON THE TREASURY'S 30YEAR BOND FELL TO 599 FROM 602 THURSDAY AMONG THE GROUPS POWERING STOCKS HIGHER WERE ENERGY ISSUES WHICH RALLIED AFTER THE WALL STREET JOURNAL REPORTED THAT PRESIDENT CLINTON PLANS TO PROPOSE TAX INCENTIVES AND OTHER MEASURES TO STIMULATE DOMESTIC OIL AND NATURAL GAS INDUSTRIES TEXACO GAINED 1 1/8 TO 68 7/8 ATLANTIC RICHFIELD 1 1/8 TO 115 1/2 HALLIBURTON 2 1/4 TO 39 3/8 PHILLIPS PETROLEUM 1 3/8 TO 35 1/8 AND BAKER HUGHES 1 TO 24 1/2 MAXUS ENERGY PLUNGED 1 1/8 TO 6 7/8 IN HEAVY TRADING PAINEWEBBER CUT A RATING ON THE STOCK TO NEUTRAL FROM ATTRACTIVE AFTER THE DALLAS OIL AND GAS CONCERN DISCLOSED DISAPPOINTING TEST RESULTS FROM A WELL IN COLOMBIA AMGEN SURGED 1 1/4 TO 39 7/8 ON NASDAQ OPPENHEIMER BIOTECHNOLOGY ANALYST JEFFREY CASDIN REITERATED HIS BUY RECOMMENDATION ON THE STOCK SHARES OF HEALTH MAINTENANCE ORGANIZATIONS TUMBLED AFTER NEW YORK REGULATORS ORDERED US HEALTHCARE TO CUT ITS PREMIUM RATES AT STATEWIDE HMOS BY AN AVERAGE OF 39 US HEALTHCARE SKIDDED 4 TO 46 3/4 UNITED HEALTHCARE 2 3/4 TO 65 7/8 AND FOUNDATION HEALTH 1 TO 22 5/8 DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9310040026 931004 BUSINESS BRIEF IMO INDUSTRIES INC SALE OF FOUR AEROSPACE UNITS FOR 56 MILLION IS COMPLETED IMO INDUSTRIES INC LAWRENCEVILLE NJ SAID IT COMPLETED THE SALE OF ITS FOUR AEROSPACE DIVISIONS TO AN AFFILIATE OF KELSO & CO FOR 56 MILLION THE FOUR DIVISIONS ADEL FASTENERS AEROPRODUCTS CONTROLEX AND WIGGINS CONNECTORS SERVE MAINLY THE MILITARY AND COMMERCIAL AEROSPACE MARKETS THIS SALE IS PART OF AN ASSETDIVESTITURE PROGRAM ANNOUNCED IN LATE 1992 WITH PROCEEDS TO BE USED TO PAY OFF DEBT IMO WITH 1992 SALES OF 928 MILLION SUPPLIES INSTRUMENTS CONTROLS ENGINEERED POWER PRODUCTS AND SERVICES TO INDUSTRIAL AND DEFENSE CUSTOMERS 9310040025 931004 BUSINESS BRIEF INTEGRA FINANCIAL CORP CHARGE IS TAKEN TO REFLECT HEADQUARTERS WRITEDOWN INTEGRA FINANCIAL CORP PITTSBURGH SAID IT TOOK A 14 MILLION CHARGE IN THE THIRD QUARTER TO REFLECT A WRITEDOWN IN THE VALUE OF ITS HEADQUARTERS THE BANK HOLDING COMPANY SAID THE WRITEDOWN IS PART OF A COMPREHENSIVE REVIEW OF ITS REAL ESTATE STILL BOLSTERED BY SECURITIES GAINS AND STRONG CORE EARNINGS INTEGRA EXPECTS EARNINGS IN THE QUARTER DIDN'T MATERIALLY DIFFER FROM ANALYSTS' ESTIMATES OF 108 A SHARE IN THE YEAREARLIER PERIOD INTEGRA EARNED 37 MILLION OR 146 A SHARE 9310040024 931004 BUSINESS BRIEF ICH CORP SALE OF STAKES WILL BOOST THIRDQUARTER NET INCOME ICH CORP SAID GAINS FROM THE SALE OF STAKES IN TWO COMPANIES WILL BOOST THIRDQUARTER EARNINGS THE LOUISVILLE KY HEALTH INSURANCE CONCERN SOLD 133 MILLION COMMON SHARES OF BANKERS LIFE HOLDING CORP TO CONSECO INC OF CARMEL IND AS PART OF THE TRANSACTION ICH REDEEMED 50 MILLION OF ITS SERIES 1987A 11 PREFERRED STOCK HELD BY CONSECO AFFILIATES THE STOCK SALE RESULTED IN A GAIN OF 125 MILLION OR 260 A SHARE FOR ICH AND ICH SUBSIDIARIES SOLD 18 MILLION COMMON SHARES OF CCP INSURANCE INC OF CARMEL IND IN A SECONDARY OFFERING CREATING A GAIN OF 181 MILLION OR 38 CENTS A SHARE IN THE YEAREARLIER PERIOD ICH EARNED 123 MILLION OR 10 CENTS A SHARE ICH SHARES FELL 125 CENTS FRIDAY TO CLOSE AT 650 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE 9310040023 931004 BUSINESS BRIEF SEAGULL ENERGY CORP THIRDPERIOD GAIN EXPECTED TO TOTAL FIVE CENTS A SHARE SEAGULL ENERGY CORP HOUSTON SAID IT WILL RECORD A THIRDQUARTER GAIN OF FIVE CENTS A SHARE RESULTING FROM THE SALE OF CERTAIN NONSTRATEGIC OIL AND GAS PRODUCING PROPERTIES AND AN INCREASE IN ITS PROVISION FOR FEDERAL INCOME TAXES THE PROPERTIES SOLD WERE SITUATED IN WEST TEXAS AND THE ROCKY MOUNTAINS WITH RESERVES OF ABOUT 13 BILLION CUBIC FEET OF NATURAL GAS SEAGULL SAID THEY WERE OUTSIDE ITS CORE AREAS OF PRODUCTION THE SALE PRICE OF 99 MILLION RESULTED IN A GAIN OF 27 MILLION OR EIGHT CENTS A SHARE THE RECENT FEDERAL INCOME TAX LEGISLATION REQUIRED SEAGULL TO INCREASE ITS PROVISION FOR TAXES BY 12 MILLION OR THREE CENTS A SHARE IN LAST YEAR'S THIRD QUARTER SEAGULL HAD A LOSS OF 23 MILLION OR 18 CENTS A SHARE ON REVENUE OF 489 MILLION 9310040022 931004 LETTERS TO THE EDITOR HALPERIN MISTRUSTS SPIES IT'S NO SECRET YOU HAVE FEATURED TWO EDITORIAL PAGE ARTICLES ON THE FIGHT OVER MORTON HALPERIN'S NOMINATION FOR THE DEFENSE DEPARTMENT POST OF ASSISTANT SECRETARY FOR DEMOCRACY AND HUMAN RIGHTS FRANK GAFFNEY AUG 9 AND PAUL GIGOT POTOMAC WATCH SEPT 10 ARGUING THAT MR HALPERIN'S ERROR STEMS FROM HIS LIBERTARIAN ZEALOTRY WHICH MISTRUSTS ALL SECRECY MR GIGOT SUGGESTS MR HALPERIN IS A TOLERABLE NOMINEE OF THE LIBERAL TRADITION HE ASSERTS THAT MR HALPERIN'S OPPONENTS HAVE EXAGGERATED AND DISTORTED THE CANDIDATE'S RECORD ON SUCH THINGS AS SUPPORTING THE RIGHT TO EXPOSE THE IDENTITIES OF US INTELLIGENCE OFFICERS MR GIGOT ALSO SUGGESTS THAT MR GAFFNEY AND OTHERS ARE WRONG IN ACCUSING MR HALPERIN OF AIDING AND ABETTING PHILIP AGEE A FORMER CIA OFFICER WHO LOST HIS US PASSPORT FOR HIS TREACHEROUS ACTIVITIES DIRECTED AT EXPOSING AND UNDERMINING THE CIA LEST PEOPLE MISS THE FOREST FOR THE TREES THIS NOMINATION IS ALL ABOUT POLITICAL JUDGMENT ON NATIONAL SECURITY MATTERS THE JUDGMENT OF MORTON HALPERIN AND THE CLINTON ADMINISTRATION THAT NOMINATED HIM MR GIGOT MAINTAINS THAT MR HALPERIN HAS ALWAYS SAID THAT LEAKING AGENT NAMES IS WRONG AND HE EVEN CREDITS HIM FOR STRIKING A DEAL WITH THENCIA DIRECTOR WILLIAM CASEY THAT MADE SUCH DISCLOSURES A CRIME IN FACT MR HALPERIN'S CAREER PAPER TRAIL SHOWS EXACTLY THE OPPOSITE THE CENTER FOR NATIONAL SECURITY STUDIES CNSS DIRECTED BY MR HALPERIN WAS ONE OF THE MOST ACTIVE ORGANIZATIONS LOBBYING TO PROTECT THE SOCALLED RIGHT TO EXPOSE INTELLIGENCE AGENTS' IDENTITIES AND TO PROTECT THE ACTIVITIES OF CIA DEFECTOR PHILIP AGEE WHO STATED THAT HIS MISSION WAS TO IDENTIFY AND EXPOSE EACH OF THE PEOPLE WHO INSTRUMENTS AND EXECUTES THE CIA'S PROGRAMS THE 1982 CNSS ANNUAL REPORT WHICH MR HALPERIN EDITED ACTUALLY BOASTS OF HAVING THUS FAR STOPPED THE PASSAGE OF THE INTELLIGENCE IDENTITIES PROTECTION ACT SHORTLY THEREAFTER CONGRESS FINALLY DID PASS THAT ACT SOME FIVE YEARS AFTER THE MURDER OF RICHARD WELCH THE CIA BUREAU CHIEF IN ATHENS WHO HAD BEEN GUNNED DOWN OUTSIDE HIS HOME FOLLOWING THE DISCLOSURE OF HIS IDENTITY AND RESIDENTIAL ADDRESS IN PHILIP AGEE'S COUNTERSPY MAGAZINE ANOTHER ORGANIZATION UNDER THE LEADERSHIP OF MORTON HALPERIN CALLED THE CAMPAIGN FOR POLITICAL RIGHTS CLAIMED PRIMARY RESPONSIBILITY FOR OVERTURNING THE BLITZ AMENDMENT WHICH WOULD HAVE KEPT PERSONS WHO ADVOCATED REVOLUTIONARY CHANGE FROM PARTICIPATING IN FEDERAL JOBTRAINING CETA PROGRAMS MR HALPERIN HAS ALWAYS OPPOSED THE USE OF INFORMANTS BY THE FBI FOR DOMESTIC INTELLIGENCEGATHERING PURPOSES UNDER HIS LEADERSHIP CNSS WAS ACTIVELY INVOLVED IN THE DRAFTING OF THE FOREIGN INTELLIGENCE SURVEILLANCE ACT FISA SIGNED INTO LAW IN 1978 FISA PROHIBITS US INTELLIGENCE AGENCIES FROM CONDUCTING SURVEILLANCE ON VISITING FOREIGNERS UNLESS THEY ARE ABOUT TO VIOLATE A FEDERAL LAW SUFFICE IT TO SAY THAT MORTON HALPERIN'S PROFESSIONAL CAREER TO DATE HAS LARGELY REVOLVED AROUND OPPOSING AND LIMITING THE US INTELLIGENCE AGENCIES THE EYES AND EARS OF THE NATION'S DEFENSE MR HALPERIN'S POLITICAL JUDGMENT OR LACK THEREOF EVEN COMPELLED HIM TO VOLUNTARILY TESTIFY IN 1977 ON BEHALF OF PHILIP AGEE WHO WAS THEN BEING DEPORTED FROM BRITAIN AS A SECURITY RISK FOR COLLABORATING WITH CUBAN AND EAST BLOC INTELLIGENCE IN THE AFTERMATH OF THE WORLD TRADE CENTER BOMBING AND THE PUBLIC'S HEIGHTENED CONCERN ABOUT TERRORISM STRIKING AT HOME MR HALPERIN IS THE WRONG MAN AT THE WRONG TIME 9310040021 931004 LETTERS TO THE EDITOR VICTIMS AND THE MEDIA YOUR AUG 26 LAW ARTICLE ON CRIME VICTIMS' DEALINGS WITH THE NEWS MEDIA DIDN'T LIST THE VICTIMS AND THE MEDIA PROGRAM HERE AT THE MICHIGAN STATE UNIVERSITY SCHOOL OF JOURNALISM THE MSU VICTIMS AND THE MEDIA PROGRAM ESTABLISHED IN 1991 STRIVES TO HELP STUDENT AND PROFESSIONAL JOURNALISTS LEARN HOW TO AVOID FURTHER TRAUMA TO CRIME VICTIMS WHILE IMPROVING THEIR JOURNALISTIC SKILLS AT THE SAME TIME ONE OF THE MOST INNOVATIVE ASPECTS OF THE PROGRAM IS THE USE OF CRIME VICTIM VOLUNTEERS AS INTERVIEW SUBJECTS FOR ADVANCED REPORTING CLASSES THE PROGRAM HAS ALSO DEVELOPED A VIDEOTAPE SERIES THAT EMPHASIZES INTERVIEWING SKILLS AND POSTTRAUMATIC STRESS AWARENESS AND IS NOW IN USE AT OVER 25 COLLEGE JOURNALISM PROGRAMS AND PROFESSIONAL NEWS ORGANIZATIONS NATIONWIDE 9310040020 931004 PEPPERAND SALT ONE CAN HARDLY BE SURE OF A NAME OR A BORDER I'M COMPLETELY PERPLEXED BY THE NEW WHIRLED ORDER HOW MIGHT WE LIQUEFY THE DEBT WHO PLEAD FOR PBS COMPUTER NOVICE NEOBYTE 9310040019 931004 LETTERS TO THE EDITOR REDISTRIBUTION SYNONYM FOR THEFT HERBERT STEIN'S SEPT 15 EDITORIAL PAGE ARTICLE WHO'S SUBSIDIZING WHOM REVEALS PROFOUND IGNORANCE OF A BASIC LAW THAT HELPS ENSURE A VIABLE LONGLIVED SOCIETY SOMETHING COMPARABLE TO NEWTON'S LAWS OF MOTION AND AS UNALTERABLE BUT APPLYING TO HUMAN RELATIONSHIPS DO NOT STEAL STEALING MAY BE DEFINED AS TAKING SOMETHING OF VALUE FROM A PERSON WITHOUT THE RETURN OF USEFUL SERVICE WE HAVE LAWS AGAINST STEALING WHETHER BY FORCE OR CHICANERY BUT THERE SEEMS TO BE A BLIND SPOT POLITICIANS AND GOVERNMENTS BELIEVE THEY ARE NOT BOUND BY THIS SOCIAL LAW REDISTRIBUTION THE TAKING OF MONEY OR PROPERTY BY FORCE BY GOVERNMENT AND BESTOWING IT ON SOMEONE FAVORED WITHOUT COMPENSATING THE ORIGINAL OWNER IS JUST A FORM OF STEALING PROF STEIN SAYS I REGARD TRANSFERRING INCOME FROM SOME PEOPLE TO OTHER PEOPLE AS A LEGITIMATE FUNCTION OF GOVERNMENT APPARENTLY HE DOES NOT CONSIDER THIS THEFT THEFT BY GOVERNMENTS IS NO DIFFERENT FROM THEFT BY THE MAFIA WHICH ALSO TAKES FUNDS FROM PEOPLE AND TRANSFERS THEM TO OTHERS THE DELETERIOUS RESULTS OF THEFT ARE OUTLINED IN THE MATERNA LETTER TO THE EDITOR ON THE SAME DAY REGARDING RENT CONTROL THE MANHEIM LETTER SHOWS THAT PROF STEIN'S ATTITUDE IS ALSO FOUND IN THE PROFESSORIAT A LAW SCHOOL PROFESSOR SHOULD KNOW WHAT THEFT IS 9310040018 931004 INTERNATIONAL ARAFAT LONG A GUERRILLA POLITICIAN NOW DRAFTS ECONOMIC PLANS FOR PALESTINE BY JAMES M DORSEY SPECIAL TO THE WALL STREET JOURNAL ANKARA TURKEY HAVING SPENT FOUR DECADES AS LEADER OF A GUERRILLA MOVEMENT YASSER ARAFAT NOW TALKS LIKE AN ECONOMIC PLANNER WEEKS AFTER HIS HISTORIC HANDSHAKE WITH ISRAELI PRIME MINISTER YITZHAK RABIN HE IS DETERMINED TO PROVE TO HIS DOWNTRODDEN PEOPLE THAT PEACE MEANS PROSPERITY CONFRONTED WITH WIDESPREAD PALESTINIAN CRITICISM OF HIS AGREEMENT WITH ISRAEL THE 66YEAROLD MR ARAFAT CRISSCROSSES THE GLOBE IN SEARCH OF BILLIONS OF DOLLARS IN AID AND INVESTMENTS FOR THE BUDDING PALESTINIAN ENTITY IN WASHINGTON FRIDAY A 43NATION PLEDGING CONFERENCE PROMISED 2 BILLION IN AID OVER THE NEXT FIVE YEARS FOR THE WEST BANK AND GAZA BUT MR ARAFAT QUOTING A PALESTINIAN DOCUMENT DRAFTED FOR THE PLEDGING CONFERENCE SAYS 6 BILLION TO 9 BILLION IS NEEDED OVER THE NEXT THREE YEARS TO MAKE HIS AGREEMENT WITH ISRAEL STICK WE HAVE TO START FROM ZERO OUR INFRASTRUCTURE HAS BEEN DESTROYED DURING THE LONG PERIOD OF OCCUPATION HE SAYS ECONOMIC RECONSTRUCTION HAS TO START IMMEDIATELY IF IT DOESN'T THERE WILL BE A REAL COLLAPSE HE WARNED DURING AN INTERVIEW LAST WEEK IN HIS GUEST QUARTERS IN TURKISH PRESIDENT SULEYMAN DEMIREL'S OFFICIAL COMPOUND HE RAISES THE SPECTER OF A MILITANT ISLAMIC BACKLASH AND RENEWED MIDEAST VIOLENCE IF THE NEGOTIATED APPROACH FAILS PEACE NEEDS TO BE BACKED BY PALESTINIAN PROSPERITY HE ARGUES EITHER WE WILL HAVE ANOTHER SOMALIA OR WE WILL BE ONE OF THE ECONOMIC TIGERS HE SAYS ARAFAT AIDE BASSAM ABU SHARIF A KEY ARCHITECT OF THE PEACE PROCESS WHO ACCOMPANIED MR ARAFAT TO TURKEY DREAMS OF PALESTINE AS THE DOOR TO MIDDLE EASTERN MEMBERSHIP IN THE NEW WORLD ORDER IF PROPERLY FUNDED PALESTINE CAN GENERATE SOLUTIONS TO MIDDLE EASTERN POVERTY I ENVISION A MIDDLE EASTERN COMMON MARKET THAT WILL BE ISRAEL'S BRIDGE TO MEMBERSHIP IN THE MIDDLE EAST MR ABU SHARIF SAYS ARGUING THAT ISRAEL CAN'T AFFORD TO EXIST IN ISOLATION MR ARAFAT'S WISH LIST INCLUDES NEARLY ALL ATTRIBUTES OF AN INDEPENDENT STATE AIRPORTS HARBORS ROADS TELECOMMUNICATIONS BROADCASTING FACILITIES WATERWORKS POWER STATIONS AN EDUCATION SYSTEM AND A SAFETY NETWORK FOR THE NEEDY INCLUDING THE FAMILIES OF THOSE WHO DIED IN THE STRUGGLE FOR PALESTINE OR WHO REMAIN IMPRISONED IN ISRAEL MR ARAFAT'S IMMEDIATE PRIORITIES INCLUDE CREATING JOBS TURNING REFUGEE CAMPS INTO URBAN CENTERS WITH DECENT HOUSING DEVELOPING SMALL AND MIDSIZE BUSINESSES AND BUILDING A REFINERY AND A DESALINATION PLANT IN GAZA OUR PEOPLE MUST FEEL THAT THERE IS A REAL CHANGE HE SAYS IN SEEKING FUNDING FOR HIS VISION OF PALESTINE AS THE CORNERSTONE OF A FUTURE MIDDLE EASTERN COMMON MARKET THAT WOULD JOIN PALESTINIAN SKILLED LABOR AND ARAB CAPITAL WITH ISRAELI KNOWHOW MR ARAFAT IS TAKING A LEAF OUT OF ISRAELI HISTORY APPEALING 45 YEARS AGO TO WESTERN FEELINGS OF GUILT FOR FAILING TO RESCUE EUROPEAN JEWRY FROM HITLER'S GAS CHAMBERS ISRAELI LEADERS RAISED FUNDS FOR THEIR NEW STATE NOW MR ARAFAT HOPES THAT THE DEVELOPED WORLD'S GUILT OVER THE PLIGHT OF HIS PEOPLE COUPLED WITH THE PROSPECT OF RESOLVING ONE OF THE WORLD'S MOST INTRACTABLE CONFLICTS WILL PRODUCE SIMILAR RESULTS ISRAELI AND PALESTINIAN BUSINESSMEN ARE ALREADY BEATING A PATH TO MR ARAFAT'S DOOR IN THE HOPE OF BENEFITING FROM BILLIONS OF DOLLARS BEING MADE AVAILABLE IN AID TO BOTH THE PALESTINIANS AND ISRAEL THE EUROPEAN COMMUNITY COMMISSION THIS WEEK MOVED TO ENCOURAGE PROSPECTS OF PALESTINIANISRAELI ECONOMIC COOPERATION BY STIPULATING THAT ISRAELI PARTNERS SHOULD BE INVOLVED IN WHATEVER PROJECTS ARE FUNDED IN THE PALESTINIAN ENTITY REPAIRING THE DAMAGE OF PAST MISCALCULATIONS IS LIKELY TO BE CRUCIAL TO PALESTINIAN EFFORTS TO SECURE ARAB FUNDING RELATIONS WITH THE OILRICH ARAB GULF STATES WERE FROZEN AS A RESULT OF PALESTINIAN SUPPORT FOR IRAQ DURING THE GULF WAR YET MR ARAFAT AND HIS COLLEAGUES ARE OPTIMISTIC THAT THE GULF ARABS WILL PLAY THEIR PART INDEED AT THE PLEDGING CONFERENCE SAUDI ARABIA OVERCAME ITS PAST ANGER AND PROMISED 100 MILLION OVER THE FIRST YEAR THE PLO EXPECTS OTHER GULF STATES ALSO WILL GIVE SUPPORT MR ABU SHARIF PREDICTS A REESTABLISHMENT OF RELATIONS WITH THE GULF WITHIN WEEKS MR ARAFAT A MAN WITH THE DEMONSTRATED ABILITY TO EXTRICATE HIMSELF FROM EVEN THE TIGHTEST OF PREDICAMENTS CONCLUDES WE HAVE TO WAIT AND SEE WE HAVE EXPERIENCE WITH EMPTY PROMISES OUR BROTHERS OUR FRIENDS EVERYONE HAS TO HELP MAKE THIS A REAL PEACE 9310040017 931004 COMMODITIES GRAIN FUTURES PRICES DECLINE AS KILLING FREEZE FORECAST FOR ENTIRE CORN BELT FAILS TO MATERIALIZE BY JEFFREY TAYLOR AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO GRAIN PRICES ARE DECLINING AT THE CHICAGO BOARD OF TRADE AS THE HARVEST BEGINS IN EARNEST ACROSS THE MIDWEST A KILLING FREEZE THAT WAS FORECAST FOR THE ENTIRE CORN BELT FAILED TO MATERIALIZE ALTHOUGH TEMPERATURES WERE COLD ENOUGH TO END THE GROWING SEASON IN SOME NORTHERN AREAS MUCH OF THE CENTRAL AND SOUTHERN PARTS OF THE CORN BELT ESCAPED SERIOUS DAMAGE COLD TEMPERATURES USUALLY BEGIN TO END THE GROWING SEASON IN THE MIDWEST IN OCTOBER BUT EVEN A NORMAL FROST WOULD CUT THE POTENTIAL HARVEST MANY FIELDS WEST OF THE MISSISSIPPI RIVER ARE TWO TO THREE WEEKS BEHIND SCHEDULE EXCESSIVE SUMMER RAINS DELAYED PLANTINGS AND STUNTED GROWTH HOWEVER THE CORN AND SOYBEAN HARVESTS ARE PICKING UP SPEED EAST OF THE MISSISSIPPI RIVER WHERE GROWING CONDITIONS WERE FAVORABLE AND MANY FIELDS HAVE ALREADY REACHED MATURITY WE HAD A FROST HERE ABOUT TWO WEEKS AGO MAYBE ABOUT 50 OF A KILLING FROST SAYS ROBERT FERGUSON WHO FARMS 1500 ACRES OF CORN AND SOYBEANS NEAR LAKEFIELD MINN THE TOPS GOT BURNED OFF THE SOYBEAN PLANTS MR FERGUSON SAYS MANY FARMERS IN HIS AREA OF SOUTHWEST MINNESOTA ARE TAKING ADVANTAGE OF A STATE PROGRAM THAT OFFERS 92 OF FEDERAL FARM PROGRAM BENEFITS TO FARMERS WHO WILLINGLY DESTROY THEIR CROPS GRAIN PRICES USUALLY SLUMP AS THE HARVEST BEGINS TO REFILL US STOCKPILES WHAT'S MORE MANY GRAIN TRADERS AT THE CBOT APPARENTLY HAVEN'T TAKEN CROP LOSSES IN NORTHERN AREAS VERY SERIOUSLY BIDDING DOWN GRAIN FUTURES PRICES MOST OF LAST WEEK THAT IS BECAUSE CROPS ARE IN MUCH BETTER SHAPE IN CENTRAL CORN BELT STATES SUCH AS ILLINOIS INDIANA AND OHIO AND FAVORABLE WEATHER IN THOSE STATES IS ALLOWING THE HARVEST TO BEGIN THE COMBINES ARE RUNNING AT A FEVERISH PACE IN ILLINOIS OHIO AND INDIANA AND SOYBEAN YIELDS ARE RUNNING BETTER THAN EXPECTED SAYS DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO THIS HARVEST COULD GET WRAPPED UP QUICKLY IF THE WEATHER HOLDS US GRAIN TRADERS USED TO COUNT ON BUYING BY THE FORMER SOVIET UNION TO SPARK A RALLY LATER IN THE FALL HOWEVER A LARGE RUSSIAN GRAIN HARVEST AND ECONOMIC CHAOS THERE IS EXPECTED TO REMOVE MOSCOW AS A MAJOR BUYER THIS FALL THAT IN TURN TAKES PRESSURE OFF OTHER FOREIGN BUYERS TO TRY TO BEAT RUSSIA INTO THE US GRAIN MARKET AS A RESULT SOME US GRAIN ANALYSTS DON'T EXPECT TO SEE THE TYPE OF EXPORT RALLIES THAT WERE COMMON IN PREVIOUS AUTUMNS MEANWHILE THE HOTTEST FARM COMMODITY IN CHICAGO THIS WEEK MIGHT WELL BE THE TINY ROUGH RICE FUTURES CONTRACT TRADED AT THE MIDAMERICA COMMODITY EXCHANGE ROUGH RICE FUTURES PRICES ROSE 19 LAST WEEK IN THE WAKE OF REPORTS THAT A RICE CROP FAILURE IN JAPAN WILL FORCE THE GOVERNMENT THERE TO IMPORT ROUGHLY 11 MILLION METRIC TONS FROM FOREIGN SOURCES THE MOVE IS UNUSUAL BECAUSE THE JAPANESE GOVERNMENT HAS USUALLY RESTRICTED RICE IMPORTS TO PROMOTE SELFSUFFICIENT PRODUCTION OF ITS STAPLE CROP A METRIC TON IS 220462 POUNDS FUTURES PRICES ARE EXPECTED TO SWING WILDLY THIS WEEK ON SPECULATION THAT JAPAN MIGHT BE INTERESTED IN BUYING ABOUT 400000 METRIC TONS OF US RICE JAPAN IS ALSO EXPECTED TO BUY SIGNIFICANT AMOUNTS OF RICE FROM CHINA THAILAND AND AUSTRALIA NEAUMAN COLEMAN A DEAN WITTER REYNOLDS RICE TRADER IN MEMPHIS TENN SAID THE US RICE INDUSTRY USUALLY EXPORTS ABOUT TWO MILLION METRIC TONS OF RICE ANNUALLY THE RICE HARVEST WHICH IS UNDER WAY IN ARKANSAS IS FORECAST AT ABOUT 5350000 METRIC TONS IN MIDAMERICA TRADING FRIDAY THE RICE CONTRACT FOR NOVEMBER DELIVERY ROSE 27 CENTS PER HUNDRED POUNDS TO SETTLE AT 735 PER HUNDRED POUNDS KEVIN RIES AN INDEPENDENT RICE TRADER IN CHICAGO SAID LAST WEEK'S RALLY WAS THE BIGGEST SINCE 1987 WHEN A MONSOON CAUSED ENOUGH CROP DAMAGE IN THAILAND TO LIFT US FUTURES PRICES PAST 10 PER HUNDRED POUNDS US PRICES EARLIER THIS YEAR HAD SUNK TO THE 5 A HUNDRED POUND LEVEL IN THE WAKE OF A BIG US HARVEST SPECULATION ABOUT A DEAL INVOLVING 400000 METRIC TONS OF US RICE IS CAUSING A LOT OF PRICE VOLATILITY IN PART BECAUSE THE RICE FUTURES TRADING PIT IS SMALL ONLY ABOUT 10 TRADERS FREQUENT THE PIT WHERE DAILY TRADING VOLUME HAS JUMPED MORE THAN 400 SINCE THE JAPANESE ANNOUNCEMENT 9310040016 931004 BOEING IS CUTTING JOBS MORE SLOWLY THAN IT FORECAST BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO SAID ITS ONGOING REDUCTION OF 27000 JOBS BY MID1994 IS PROCEEDING MORE SLOWLY THAN HAD BEEN FORECAST IN AN ANNOUNCEMENT IN FEBRUARY IN A DEVELOPMENT THAT WILL HELP EASE THE ECONOMIC PAIN OF THE CUTBACKS IN THE NORTHWEST SEATTLEBASED BOEING SAID 4000 OF THE JOBS THAT WERE TO HAVE BEEN ELIMINATED DURING 1993 WILL INSTEAD BE CUT DURING THE FIRST HALF OF 1994 A COMPANY SPOKEMAN SAID CORPORATE PLANNERS DELAYED ELIMINATION OF THOSE JOBS AFTER SCRUTINIZING PRECISELY HOW THE REDUCTIONS WILL BE COORDINATED WITH DECLINING COMMERCIALJET PRODUCTION AT ITS FACTORIES AND LABORATORIES IN THE PUGET SOUND REGION AND AT WICHITA KAN PERSISTENT BAD TIMES IN THE AIRLINE INDUSTRY HAVE PROMPTED CUTBACKS IN THE PURCHASE OF NEW JETS WHICH IN TURN HAS FORCED MAJOR PRODUCTION CUTS AT BOEING THE WORLD'S LARGEST JET MAKER MEANWHILE DEFENSEPRODUCTS FACTORIES ALSO ARE WEAKENED BY CUTS IN MILITARY SPENDING WHILE THE TOTAL NUMBER OF JOBS TO BE CUT THROUGH LAYOFFS AND ATTRITION BY MID1994 COULD VARY FROM THE FEBRUARY ESTIMATE MANAGERS AT THE COMPANY AREN'T EXPECTING FEWER CUTS OVERALL THE SPOKESMAN SAID THE ELIMINATION OF 23000 JOBS THAT HAD BEEN PLANNED BY THE END OF 1993 NOW WILL TAKE UNTIL THE MIDDLE OF NEXT YEAR TO ENACT BUT WE DO EXPECT WORK FORCE REDUCTIONS TO CONTINUE AFTER THAT DURING 1994 SO FAR THS YEAR THE COMPANY HAS CUT 12800 JOBS TO ARRIVE AT A COMPANYWIDE EMPLOYMENT OF 120140 INCLUDING COMMERCIALJET MILITARYAIRPLANE COMPUTER SPACE ADVANCED SYSTEMS AND MILITARYAIRPLANE UNITS BY THE YEAR END THE COMPANYWIDE JOB CUTS WILL STAND AT ABOUT 18000 THE SPOKESMAN SAID IN THE PUGET SOUND REGION WHICH INCLUDES THE COMPANY'S LARGEST COMMERCIALAIRPLANE FACTORIES 8160 JOBS HAVE BEEN CUT THIS YEAR DRAWING TOTAL EMPLOYMENT DOWN TO 90300 BY THE YEAR END THE COMPANY PROJECTS IT WILL HAVE CUT 11000 JOBS AT THOSE FACTORIES IN WICHITA 3500 JOB CUTS SO FAR THIS YEAR HAVE REDUCED TOTAL EMPLOYMENT TO 16575 THE COMPANY EXPECTS A TOTAL OF 5000 JOBS WILL HAVE BEEN CUT THERE BY THE YEAR END 9310040015 931004 ECONOMY ECONOMIC DATA POINT TO PICKUP FROM LETHARGY REPORTS ON FACTORY ORDERS CONSUMERS' CONFIDENCE PURCHASING ARE BRIGHTER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RECOVERY MAY BE ABOUT TO SHAKE ITS SUMMER BLUES THE LATEST ECONOMIC STATISTICS SHOW A SEPTEMBER PICKUP IN CONSUMER CONFIDENCE AND A MANUFACTURING SECTOR THAT WASN'T QUITE AS SLOW AS WELL AS A REBOUND IN FACTORY ORDERS DURING AUGUST IN ADDITION A GOVERNMENT GUIDE TO FUTURE ECONOMIC GROWTH SUGGESTS A MODEST RISE IN THE ECONOMY SIX TO NINE MONTHS DOWN THE ROAD BUT ANALYSTS REMAIN CAUTIOUS PERHAPS GUNSHY FROM PAST PROJECTIONS THAT WERE TOO ROSY BUT MORE LIKELY SOBERED BY TWO MAJOR ROADBLOCKS TO GROWTH DEFENSE REDUCTIONS AND CORPORATE RESTRUCTURING TEPID SALES TO OVERSEAS TRADING PARTNERS IS ALSO A PROBLEM THE ECONOMY HAS PICKED UP FROM THE SUMMER SAID JOHN GODFREY CHIEF ECONOMIST OF BARNETT BANKS INC IN JACKSONVILLE FLA BUT MR GODFREY QUICKLY ADDED THAT SUMMER GROWTH WAS HELD DOWN BY FLOODING IN THE MIDWEST AND THAT THE RECENT PICKUP IS JUST A RETURN TO A LESS SLUGGISH BUT STILL SLUGGISH RECOVERY NEVERTHELESS THE LATEST FIGURES ARE ENCOURAGING THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID THE INDEX IT PUTS TOGETHER FROM A SURVEY OF ITS MEMBERS CREPT UP TO 497 IN SEPTEMBER THAT STILL SUGGESTS THE MANUFACTURING SECTOR IS CONTRACTING BUT IS BETTER THAN THE 493 REGISTERED IN AUGUST PRODUCTION AND ORDERS ROSE IN SEPTEMBER WHILE PRICES FELL THE EMPLOYMENT COMPONENT OF THE INDEX DECLINED BUT MUCH LESS THAN IN AUGUST THE PURCHASING MANAGERS REPORT IS CLOSELY FOLLOWED IN PART BECAUSE IT OFFERS ONE OF THE FIRST PEEKS AT HOW THE MANUFACTURING SECTOR DID THE MONTH BEFORE THIS IS AN IMPROVEMENT BUT IT SUGGESTS THE ECONOMY IS STILL STUCK IN NEUTRAL SAID ROBERT J BRETZ HEAD OF THE SURVEY COMMITTEE AND DIRECTOR OF CORPORATE PURCHASING AT PITNEY BOWES INC CONSUMER CONFIDENCE ALSO PICKED UP A BIT IN SEPTEMBER THOUGH IT IS STILL AT VERY LOW LEVELS THE UNIVERSITY OF MICHIGAN CONSUMER CONFIDENCE INDEX MOVED UP TO 779 FROM 773 ACCORDING TO MARKET SOURCES WHO SAW THE REPORT THE INDEX WHICH ISN'T MADE AVAILABLE TO THE PUBLIC ALSO SHOWED AMERICANS WERE MORE OPTIMISTIC ABOUT CURRENT AND FUTURE CONDITIONS AND THINGS MAY WELL GET BETTER THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS WHICH IS MEANT TO GAUGE THE IMPENDING HEALTH OF THE ECONOMY SHOT UP 1 IN AUGUST TO ITS HIGHEST LEVEL ALL YEAR ECONOMISTS WERE ENCOURAGED BY HOW WIDESPREAD THE IMPROVEMENT WAS OF 11 INDICATORS THAT MAKE UP THE INDEX ONLY ONE THE MONEY SUPPLY WEIGHED IT DOWN DESPITE THE BIG JUMP IN AUGUST AFTER SMALLER INCREASES OF 01 IN BOTH JULY AND JUNE ANALYSTS SAID THE REPORT STILL INDICATED SLOWER GROWTH THAN IS USUALLY ASSOCIATED WITH ECONOMIC RECOVERIES SEPARATELY THE COMMERCE DEPARTMENT SAID FACTORY ORDERS ROSE 09 IN AUGUST ONLY SLIGHTLY REVERSING A 19 DECLINE IN JULY IT WAS THE TRANSPORTATION SECTOR AS HAS BECOME TYPICAL THAT GAVE FACTORY ORDERS THEIR BIGGEST PUSH IN JULY FACTORY ORDERS HAD FALLEN MAINLY BECAUSE OF A BIG DROP IN THE TRANSPORTATION SECTOR ORDERS FOR NONDURABLE GOODS DECLINED 06 IN AUGUST IT WAS THEIR SECOND DROP IN A ROW UNFILLED ORDERS DECLINED IN AUGUST AND ARE AT THEIR LOWEST LEVEL SINCE JULY 1988 ANALYSTS GENERALLY SEE THAT AS A BAD SIGN IT MEANS FACTORIES ARE MEETING DEMAND WITH THEIR CURRENT WORK FORCE AND WON'T NEED TO ADD NEW PEOPLE BUT THOMAS RUNIEWICZ INDUSTRIAL ECONOMIST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA SAID MANUFACTURERS HAVE BECOME MORE ADEPT AT TURNING ORDERS AROUND QUICKLY MEANING PRODUCTIVITY IS ON THE RISE ALL FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 1 INCREASE IN THE INDEX FOR AUGUST AND A 01 INCREASE FOR JULY THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR AUGUST AND THE CHANGE FROM JULY ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 122 DOWN FROM 121 IN THE PREVIOUS MONTH HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9310040014 931004 CLOSED END FUNDS FRIDAY OCTOBER 1 1993 BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO 9310040013 931004 HARTMARX SAYS NET WAS MODEST' IN ITS 3RD QUARTER BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO HARTMARX CORP SAID IT EXPECTS TO REPORT A FISCAL THIRDQUARTER PROFIT OF ABOUT 2 MILLION OR SIX CENTS A SHARE COMPARED WITH A NET LOSS OF 214 MILLION OR 830 A SHARE AFTER A 191 MILLION RESTRUCTURING CHARGE A YEAR EARLIER ELBERT O HAND CHAIRMAN SAID IN AN INTERVIEW THAT HARTMARX IS ON PACE TO POST A PROFIT FOR THE YEAR ENDING NOV 30 THAT WOULD REQUIRE THE COMPANY TO OFFSET LOSSES IN ITS FIRST TWO QUARTERS TOTALING 47 MILLION OR 15 CENTS A SHARE HARTMARX WHICH MAKES MEN'S TAILORED CLOTHING AND SPORTSWEAR EXPECTS TO RECORD SALES FOR THE THIRD QUARTER ENDED AUG 31 OF ABOUT 190 MILLION DOWN FROM 264 MILLION A YEAR EARLIER MR HAND SAID HARTMARX'S MODEST THIRDQUARTER PROFIT INDICATES THAT THE RESTRUCTURING THE COMPANY UNDERTOOK IN LAST YEAR'S THIRD QUARTER IS BEARING FRUIT SINCE THEN THE COMPANY HAS FORCED OUT ITS FORMER CHAIRMAN SOLD ITS 300STORE RETAIL DIVISION AND RECEIVED A 30 MILLION CAPITAL INFUSION IN EXCHANGE FOR THE INFUSION HARTMARX GAVE UP AN 18 COMMON STOCK INTEREST OPTIONS ON AN ADDITIONAL 5 AND CONTROL OVER TWO BOARD SEATS HARTMARX ALSO REPLACED MOST OF ITS 350 MILLION CREDIT FACILITY THE FINANCIAL STRUCTURE OF THE BUSINESS IS WORKING WELL AND BUILDING MOMENTUM AND THE OPERATING STRUCTURE IS WORKING WELL MR HAND SAID HARTMARX BENEFITED IN THE THIRD QUARTER FROM FILLIN ORDERS FROM CUSTOMERS WHICH ARE PLACED AFTER INITIAL ORDERS ARE MADE MR HAND SAID HE SAID HE EXPECTS THE THIRD QUARTER'S SALES MOMENTUM TO CONTINUE INTO THE FOURTH QUARTER ALTHOUGH THE MARKET FOR MEN'S TAILORED CLOTHING HAS BEEN SOFT FOR THE LAST TWO YEARS THE UPSCALE SEGMENT OF THAT MARKET WHERE HARTMARX MAKES MOST OF ITS SALES HAS BEEN STRONGER MR HAND SAID HARTMARX GOT A BOOST FROM ITS KUPPENHEIMER MODERATEPRICED MEN'S STORE DIVISION WHICH IN THE THIRD QUARTER RECORDED AN INCREASE IN SAMESTORE SALES FOR THE FIRST TIME IN 10 QUARTERS SAMESTORE SALES REFER TO RESULTS AT STORES OPEN AT LEAST ONE YEAR MR HAND ADDED THAT ORDERS FOR NEXT SPRING ARE RUNNING AHEAD OF LAST YEAR 9310040012 931004 WORK & FAMILY BY SUE SHELLENBARGER THREE COMPANIES ARE STUDYING WORKFAMILY NEEDS AS A TOOL FOR IMPROVING PROFIT MANY EMPLOYERS VIEW WORKERS' FAMILYRELATED PROBLEMS AS FRINGE ISSUES HOWEVER PIONEERING FORD FOUNDATIONFUNDED RESEARCH UNDER WAY AT TANDEM COMPUTERS CORNING AND XEROX AIMS TO DISCOVER HOW EMPLOYEES' DESIRE FOR FLEXIBLE SCHEDULING OR MORE SUPPORTIVE MANAGERS CAN BE USED AS A CATALYST TO IMPROVE OUTPUT OR QUALITY THE QUESTION IS INSTEAD OF SEEING WORKFAMILY CONFLICT AS A PROBLEM TO BE DEALT WITH AT THE MARGINS COULD IT BE SEEN AS AN OPPORTUNITY TO CREATE NEW WAYS OF DOING BUSINESS SAYS JAMES LEVINE A SENIOR CONSULTANT FOR THE FAMILIES AND WORK INSTITUTE A NEW YORK NONPROFIT RESEARCH CONCERN AND ONE OF THE RESEARCHERS INVOLVED XEROX IS STUDYING THREE UNITS A NEWPRODUCT ENGINEERING GROUP A SALES UNIT AND AN ADMINISTRATIVE CENTER SAYS PATRICIA NAZEMETZ XEROX'S DIRECTOR OF BENEFITS AT THE ADMINISTRATIVE CENTER A CLERICAL AND CUSTOMERSERVICE OPERATION WITH FAIRLY RIGID SCHEDULES MANAGERS CAUSED SHOCK WAVES AT A MEETING BY OFFERING TO TRY ANY REASONABLE SUGGESTION FOR CHANGING THE WAY WE WORK INCLUDING TELECOMMUTING AND ALTERNATIVE SCHEDULES EVERYBODY SAT UP AND TOOK NOTICE MS NAZEMETZ SAYS MANAGERS HOPE THAT IF THEY PUT ASIDE THE CURRENT SELFIMPOSED STRUCTURE AND BOUNDARIES THEY MAY BE ABLE TO SEE QUANTUM PRODUCTIVITY LEAPS SHE SAYS AT CORNING MR LEVINE IS STUDYING HOW MANAGERS' TURNAROUND OF A TROUBLED TV PARTSMANUFACTURING JOINT VENTURE RELATE TO THEIR EFFORTS TO INCREASE BLACK AND FEMALE EMPLOYEES AND RESOLVE WORKFAMILY CONFLICT AT THE SAME TIME A TWOYEAR STUDY AT TANDEM HAS JUST BEGUN WITH AN UNUSUALLY HIGH 56 OF EMPLOYEES CONTACTED RESPONDING TO A SURVEY ABOUT THE QUALITY OF THEIR LIVES AND PERSONAL RELATIONSHIPS ON THE JOB THE STUDIES WILL BE COMPLETED IN ABOUT 12 TO 18 MONTHS GROWTH OF WORKFAMILY PROGRAMS IS SPEEDED BY A FRENZY OF MATCHMAKING SOME EMPLOYERS ARE TAPPING CLIENTS AS PARTNERS ROPES & GRAY A BOSTON LAW FIRM ASKED CLIENTS COOPERS & LYBRAND ACCOUNTANTS AND SCUDDER STEVENS & CLARK AN INVESTMENT FIRM TO COSPONSOR A BACKUP CHILDCARE CENTER OPERATED BY CHILDREN FIRST BOSTON OTHERS ARE SEEKING OUT COMPETITORS IN MANHATTAN BANKERS TRUST INVITED SEVERAL FINANCIALSERVICES RIVALS INCLUDING SALOMON FIRST BOSTON JP MORGAN AND SWISS BANK TO COSPONSOR ANOTHER CHILDREN FIRST CENTER SET TO OPEN IN NOVEMBER STRIDE RITE AND SIX NEIGHBORING COMPANIES IN CAMBRIDGE MASS PUT TOGETHER A SUMMER CAMP FOR EMPLOYEES' KIDS IN JUST SEVEN MONTHS WITH THE HELP OF A CONSULTANT BUT FINDING A PARTNER ISN'T ALWAYS EASY CELLULAR ONE SOUTH SAN FRANCISCO CALIF HAS BEEN LOOKING FOR 10 MONTHS FOR COLLABORATORS ON A CHILDCARE CENTER THOMAS YAMASHITA HUMAN RESOURCES DIRECTOR HAS IDENTIFIED FIVE PROSPECTIVE SITES AND 12 POSSIBLE PARTNERS BUT IT'S TAKING TIME TO PUT A GROUP TOGETHER HE SAYS FOR COMPANIES WITH FEWER THAN 1000 EMPLOYEES COLLABORATION SPREADS THE COST OF CHILDCARE PROJECTS AND ENSURES CONTINUING DEMAND SAYS MICHAEL MCNAMARA DIRECTOR OF PLANNING AND DEVELOPMENT FOR CHILDREN'S WORLD LEARNING CENTERS IS IT A GOOD IDEA TO SPY ON YOUR NANNY WHILE SHE CARES FOR YOUR CHILD FEARS OF LAX OR ABUSIVE CARE HAVE MADE SOME PARENTS SO JUMPY THAT THEY ARE PLANTING ELECTRONIC SURVEILLANCE DEVICES IN THEIR HOMES A CALIFORNIA COUPLE SENT THEIR 19YEAROLD NANNY TO PRISON AFTER A HIDDEN VIDEO CAMERA ATOP A TV SET IN THEIR HOME RECORDED HER HITTING THE CHILD REPEATEDLY WITH A WOODEN SPOON TOTAL RECALL A SPRING VALLEY NY VIDEOSURVEILLANCE CONCERN HAS FILLED MORE THAN 20 ORDERS AND HAS A BACKLOG PENDING FOR A NEW HOMESPYING DEVICE LAUNCHED IN AUGUST THAT IS DESIGNED TO LOOK LIKE THE BASE OF A LAMP OR VASE THE GADGET CALLED BABYWATCH CAN BE RENTED FOR THREE DAYS FOR 199 AND PLACED NEAR A PLAYPEN OR CRIB TO RECORD THE INTERACTION BETWEEN A SITTER AND CHILD THERE'S BEEN A GENERAL RISE IN BOTH THE AVAILABILITY AND PRESUMABLY THE ACCEPTABILITY OF USING ELECTRONIC SURVEILLANCE DEVICES IN THE HOME SAYS GARY T MARX A SPECIALIST IN ELECTRONIC SURVEILLANCE AND AUTHOR OF A BOOK ON THE SUBJECT BUT NANNY GROUPS SAY THE IDEA IS A MISFIRE WENDY SACHS PRESIDENT OF THE INTERNATIONAL NANNY ASSOCIATION SAYS THAT WHILE A NANNY SHOULD HANDLE CHILDREN THE SAME WHETHER PARENTS ARE PRESENT OR NOT AND SHOULDN'T FEEL UNCOMFORTABLE ABOUT BEING OBSERVED THE WHOLE TRUST FACTOR IS REALLY BLOWN TO PIECES BY THE IDEA THAT YOU HAVE TO SPY ON YOUR NANNY CATHIE ROBERTSON HEAD OF A NANNYTRAINING PROGRAM AT GROSSMONT COLLEGE EL CAJON CALIF CALLS IT A QUICK AND DIRTY FIX FOR A PROBLEM THAT SHOULDN'T HAPPEN IN THE FIRST PLACE IF THE FAMILIES DO THEIR HOMEWORK BY SCREENING NANNY CANDIDATES WELL ADDS JAN BROWN AN OFFICIAL OF THE CALIFORNIA CHILD CARE INITIATIVE PROJECT A RECRUITMENT AND TRAINING PROGRAM IT JUST MAKES MY HEART ACHE IF YOU HAVE TO PUT UP A MACHINE TO PROVE TO YOURSELF THAT A CHILD IS BEING WELL CARED FOR THEN SOMETHING IS WRONG MORE THAN 80 NEW YORK EMPLOYERS PINCHHIT FOR THE NEW YORK CITY SCHOOLS BY OPENING 12 SCHOOLHOLIDAY CAMPS FOR KIDS A MONTH EARLY THE CAMPS SCHEDULED BY WORK/FAMILY DIRECTIONS A BOSTON CONSULTANT TO OPEN FOR THE COLUMBUS DAY SCHOOL HOLIDAY ENROLLED KIDS LEFT ADRIFT BY THE ASBESTOSDELAYED SCHOOL OPENING FLEXIBLE WORK SCHEDULES RANK FOURTH AMONG THE JOB CHARACTERISTICS CONSIDERED MOST IMPORTANT BY WOMEN IN HELPING ADVANCE THEIR CAREERS BEHIND EQUAL PAY EQUAL PROMOTION OPPORTUNITIES AND RETIREMENT BENEFITS SAYS A MEMBERSHIP SURVEY BY THE NATIONAL NETWORK OF COMMERCIAL REAL ESTATE WOMEN 9310040011 931004 DIVIDEND NEWS READER'S DIGEST ASSOCIATION INC READER'S DIGEST ASSOCIATION INC INCREASED ITS QUARTERLY DIVIDEND 17 TO 35 CENTS A SHARE FROM 30 CENTS ON BOTH CLASS A NONVOTING AND CLASS B VOTING SHARES THE DIVIDEND WILL BE PAYABLE NOV 1 TO SHARES OF RECORD OCT 19 THE PLEASANTVILLE NY PUBLISHER SAID ITS DIVIDEND HAS TRIPLED SINCE ITS INITIAL OFFERING IN 1990 9310040009 931004 LEISURE & ARTS BOOKSHELF RICH FAMILY HISTORY FROM BEAVER TO BROOKE BY RON CHERNOW BY NATURE STUFFED SHIRTS REPRESSED AND SOMBER THE ASTOR MEN STIRRED TO LIFE ONLY AT THE PROSPECT OF A GREAT DEAL AND LEFT THE GLITTER TO THEIR FLAMBOYANT WIVES THE STYLE SEEMS TO HAVE BEEN SET BY THE CLAN'S FOUNDER JOHN JACOB ASTOR 17631848 WHO LIKE SO MANY LATER ASTOR MEN AMASSED ENORMOUS WEALTH BUT REMAINED SOMETHING OF A CIPHER OUTSIDE THE OFFICE THAT IS HOW HE COMES ACROSS AS WELL IN DEREK WILSON'S THE ASTORS 17631992 LANDSCAPE WITH MILLIONAIRES ST MARTIN'S PRESS 439 PAGES 2495 A GERMANBORN IMMIGRANT JOHN JACOB ASTOR JOINED HIS BROTHER'S NEW YORK BUTCHER BUSINESS SOLD FLUTES VIOLINS AND OTHER MUSICAL INSTRUMENTS THEN BEGAN TO DABBLE IN MANHATTAN REAL ESTATE AT THE SAME TIME HE SET UP AN IMMENSELY PROFITABLE FURTRADING NETWORK MR WILSON SCANTS THE BUSINESS SIDE OF HIS STORY BUT IT'S CLEAR ASTOR DIDN'T GET TO BE THE RICHEST MAN IN AMERICA BY BEING SOFTHEADED AND SENTIMENTAL PLYING THE INDIANS WITH RUM TO SECURE BETTER PELT PRICES WAS JUST ONE OF HIS TACTICS AS A RULE SELFMADE MEN BECOME FANATICAL PATRIOTS GRATEFUL TO THE COUNTRY THAT HAS CRADLED THEM YET SOME ASTORS RAN THE FILM OF AMERICAN HISTORY BACKWARD MOVING TO ENGLAND AND TAKING ON THE TRAPPINGS OF LANDED GENTRY IN THE 1880S WILLIAM WALDORF ASTOR DECAMPED FOR EUROPE IN A HUFF AFTER FAILING TO WIN A CONGRESSIONAL SEAT LACKING THE COMMON TOUCH HE DONNED GLOVES TO SHAKE THE HANDS OF VULGAR VOTERS IRATE THAT AN ASTOR SHOULD ABANDON AMERICA THE PRESS SUGGESTED THAT PERHAPS A SKUNK RAMPANT SHOULD GRACE THE FAMILY'S COAT OF ARMS RETURNING THE FAVOR WILLIAM LEAKED THE PREMATURE NEWS OF HIS OWN DEMISE JUST TO EMBARRASS THE NEW YORK PRESS TO HIS DISMAY THE OBITUARIES GENERALLY CELEBRATED HIS DEATH THOSE ASTORS WHO STAYED BEHIND IN AMERICA INTRODUCED SOCIAL DISTINCTIONS REMINISCENT OF EUROPEAN SOCIETY CAROLINE ASTOR TEAMED UP WITH SOUTHERN LAWYER WARD MCALLISTER TO CREATE THE EXCLUSIVE FOUR HUNDRED OF NEW YORK SOCIETY SO NAMED BECAUSE HER BALLROOM COULD ONLY ACCOMMODATE 400 PRIVILEGED COUPLES LIKE AN ENTHRONED MONARCH MRS ASTOR SAT ON A DAIS AT ONE END OF THE HALL WHILE LOWLY SUBJECTS ATE FROM GOLD PLATES AND DRANK FROM CRYSTAL GOBLETS AT ONE GARISH AFFAIR GUESTS SIFTED THROUGH SAND SPREAD ACROSS TABLETOPS LOOKING FOR TINY DIAMONDS RUBIES AND SAPPHIRES MEANWHILE TWO ASTOR COUSINS CREATED THE WALDORF AND ASTOR HOTELS UNITING THEM IN 1897 INTO THAT 1500BEDROOM COLOSSUS THE ORIGINAL WALDORFASTORIA LATER RAZED TO MAKE WAY FOR THE EMPIRE STATE BUILDING THE HEART OF MR WILSON'S BOOK PROBES THE STRAINED MARRIAGE OF WALDORF AND NANCY ASTOR WHO ASSEMBLED AN EXOTIC MENAGERIE OF CELEBRITIES AT THEIR ENGLISH COUNTRY ESTATE CLIVEDEN A VIRGINIABORN CHRISTIAN SCIENTIST AND TEMPERANCE FANATIC NANCY BECAME THE FIRST WOMAN IN THE HOUSE OF COMMONS BOSSY EMANCIPATED BIGOTED MERCURIAL AND WITTY SHE GINGERED UP THE MUSTY ASTOR FAMILY LIFE LIKE A GATECRASHER AT A SOPORIFIC DINNER PARTY HER HUSBAND WALDORF PUBLISHED THE OBSERVER AND WAS A SELFEFFACING ENLIGHTENED TORY WHILE HIS BROTHER JOHN COOWNED THE LONDON TIMES AND LIVED IN A KENTISH CASTLE THE BROTHERS WERE LESS ROBUST MEN OF ACTION THAN SEDENTARY DENIZENS OF COUNTRY HOUSES AND THE HEADSTRONG NANCY WASTED NO TIME IN OVERSHADOWING THESE ASTOR MEN WITH THEIR THIN TIRED BLOOD AFTER A LACKLUSTER START CROWDED WITH COLORLESS CHARACTERS THE BOOK COMES ALIVE THE SECOND NANCY ENTERS THE SCENE MR WILSON DEFENDS WALDORF AND NANCY AGAINST THE DAMAGING CHARGES OF PRONAZI ACTIVITIES THAT WERE LEVELED AGAINST THEIR CLIVEDEN SET BY THE FARLEFT JOURNALIST CLAUD COCKBURN IN THE 1930S HE'S DOUBTLESS RIGHT THAT A LOT OF COCKBURN'S CONSPIRACY THEORIZING WAS JUST OVERHEATED FANTASY BUT HE DOESN'T ENTIRELY WIPE AWAY THE UNCOMFORTABLE SUSPICION THAT THE COUPLE'S PROGERMAN SYMPATHIES LASTED WELL INTO THE DECADE AFTER THE WAR THE ASTORS' SON BILL BEFRIENDED A SHADOWY SOCIALCLIMBING OSTEOPATH NAMED STEPHEN WARD WHO RENTED A COTTAGE AT CLIVEDEN AND SUPPLIED PROMINENT MEN WITH YOUNG LADIES OF EASY VIRTUE ONE SUMMER WEEKEND IN 1961 HE INTRODUCED JOHN PROFUMO MINISTER OF WAR TO CHRISTINE KEELER BEGETTING THE SCANDAL THAT LAUNCHED A THOUSAND TABLOIDS MR WILSON CONTENDS THAT BILL WAS OBLIVIOUS OF THE ORGIES UNDER WAY AT THE COTTAGE AND UNCONVINCINGLY FAULTS HIM FOR GULLIBILITY NOT GUILE THIS INFORMATIVE AND FREQUENTLY INSIGHTFUL BOOK WOULD HAVE BENEFITED FROM MORE SHAPING AND SHORTENING THERE IS A FAIR AMOUNT OF FAMILY MINUTIAE THAT COMES OFF AS UNDIGESTED RESEARCH FOR AMERICAN READERS THE BOOK MAY TILT TOO HEAVILY TOWARD THE BRITISH SIDE OF THE FAMILY WITH BROOKE ASTOR VINCENT ASTOR'S LONGLIVED AND MAGNIFICENTLY PHILANTHROPIC WIDOW REDUCED TO A SKIMPY FOUR PAGES MR WILSON HAS DONE YEOMAN'S WORK IN DISPELLING HOARY POLITICAL MYTHS ABOUT THE FAMILY BUT HE INCLUDES TOO MANY FAMILY DUDS ERRANT DAUGHTERS AND INSIPIDLY MINOR ASTOR MISFITS TO SUSTAIN ATTENTION WHILE WEINCURABLY CRASS SOULS THAT WE ARE SIMPLY CRAVE MORE STORIES ABOUT CAROLINE WALDORF AND NANCY MR CHERNOW'S NEW BOOK IS THE WARBURGS RANDOM HOUSE 9310040008 931004 REVIEW & OUTLOOK EDITORIAL ASIDES THE MOSCOW NEWS PROBABLY NO ONE IN RUSSIA LET ALONE THE REST OF THE WORLD CAN GUESS THE ULTIMATE IMPACT OF THE NEW OUTBREAK OF VIOLENCE IN MOSCOW THERE IS NO MAGIC FORMULA FOR INSTANT CHANGE TO DEMOCRACY AND MARKET ECONOMICS FROM TOTALITARIANISM AND A COMMAND ECONOMY THE ROAD IS BOUND TO BE ROCKY AN INTRIGUING ITEM IN THE REPORTS IS THAT THE ANTIYELTSIN DEMONSTRATORS INCLUDE RED ARMY VETERANS DISTURBED AT THE DISINTEGRATION OF A ONCEPROUD FIGHTING FORCE THERE ARE ALSO REPORTS THAT SECESSIONIST MOVEMENTS IN GEORGIA OWE MUCH OF THEIR RECENT SUCCESS TO DE FACTO MERCENARIES WITH WEAPONS RENTED FROM ARMY UNITS NO LONGER RECEIVING RELIABLE PAY OR RATIONS STILL ANOTHER ITEM MAKES IT HARD TO BELIEVE THE OLD SOVIET UNION WILL RETURN IF ONLY BECAUSE SUCH WORDS NEVER BEFORE COULD BE SERIOUSLY UTTERED ON MOSCOW TV AND CARRIED LIVE ON CNN A YELTSIN ADVISER APPEALED FOR CALM SAYING THE PATRIARCH OF THE RUSSIAN ORTHODOX CHURCH DECREED THAT THOSE WHO STARTED VIOLENCE WOULD NO LONGER BE CHRISTIAN 9310040007 931004 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 1/8 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 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 317 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 259 TWO MONTHS 267 THREE MONTHS 275 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 322 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 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 SEPTEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 290 13 WEEKS 302 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 661 60 DAYS 669 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 662 60 DAYS 672 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 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 9310040006 931004 AMERICAN INDUSTRIAL EXTENDS VOTE AGAIN ON CONVERSION PLANS DALLAS AMERICAN INDUSTRIAL PROPERTIES REIT SAID IT EXTENDED VOTING A SECOND TIME ON A PLAN TO CONVERT THE REALESTATE INVESTMENT TRUST TO PERPETUAL LIFE AND STAVE OFF LIQUIDATION BY 1997 THE COMPANY FORMERLY TRAMMELL CROW REAL ESTATE INVESTORS SAID IT FAILED TO RECEIVE THE NECESSARY 80 APPROVAL OF ALL 9075400 SHARES OUTSTANDING ABOUT 75 OF SHARES OUTSTANDING WERE VOTED IN FAVOR THE COMPANY SAID LEADING THE REIT'S BOARD TO EXTEND BALLOTING ANOTHER THREE WEEKS TO OCT 22 WHILE MANAGEMENT HUNTS FOR HOLDERS OF THE 15 MILLION SHARES NOTYET VOTED OF THE SHARES VOTED 90 WERE IN FAVOR OF THE CHANGE LEAVING THE REIT ABOUT 500000 VOTES SHORT OF APPROVAL WE'RE FEELING VERY GOOD RIGHT NOW PRESIDENT AND CHIEF EXECUTIVE CHARLES WOLCOTT SAID MANY SHARES NOTYET VOTED ARE IN SMALL POSITIONS AND IT'S A MATTER OF DIGGING THEM UP ONE AT A TIME IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY AMERICAN INDUSTRIAL PROPERTIES' SHARES ROSE 625 CENTS OR 30 TO 275 THE COMPANY THE FIRST PUBLIC EQUITY OFFERING OF DEVELOPER TRAMMELL CROW CO BEGAN TRADING IN 1985 AT 15 BUT SOON FELL ON HARD TIMES THIS YEAR THE REIT SEVERED TIES TO CROW BROUGHT IN NEW INDEPENDENT MANAGEMENT AND HOPED TO CAPITALIZE ON THE HOT MARKET FOR REITS FIDELITY INVESTMENTS' REALESTATE MUTUAL FUND THE REIT'S LARGEST SHAREHOLDER VOTED IN FAVOR OF THE RESTRUCTURING MR WOLCOTT SAID CRITICS OF THE PLAN WHICH FAILED TO WIN APPROVAL AT THE COMPANY'S REGULARLY SCHEDULED AUG 31 ANNUAL MEETING AS WELL HAVE ARGUED THAT THE BEST HOPE FOR SHAREHOLDERS WOULD BE A LIQUIDATION THAT MIGHT YIELD 250 TO 3 A SHARE AFTER THE REIT'S WAREHOUSE PORTFOLIO WAS SOLD 9310040005 931004 MARKETING & MEDIA MURDOCH COMPLETES NEW YORK POST DEAL AS UNION HALTS STRIKE NEW YORK AFTER MUCH MELODRAMA MEDIA BARON RUPERT MURDOCH ONCE AGAIN OWNS THE AILING NEW YORK POST MR MURDOCH CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEWS CORP COMPLETED HIS 25 MILLION PURCHASE OF THE BANKRUPT TABLOID FRIDAY AFTER THREATENING TWICE IN RECENT MONTHS TO CANCEL THE PURCHASE OVER LABOR DISPUTES HE WAS LURED BACK LAST WEEK BY PROMISES FROM NINE CRAFT UNIONS AT THE POST THAT THEY WOULDN'T HONOR A STRIKE BY THE NEWSPAPER GUILD AND ONCE FRIDAY'S PAPER WAS PUBLISHED WITHOUT DISRUPTION MR MURDOCH CLOSED THE DEAL WITHOUT SUPPORT FROM THE OTHER UNIONS THE GUILD WHICH REPRESENTS NEARLY 300 OF THE POST'S 700 EMPLOYEES VOTED SATURDAY TO END ITS STRIKE GUILD MEMBERS HAVE BEEN INVITED TO REAPPLY FOR THEIR OLD JOBS TODAY THOUGH IT IS ASSUMED THAT DOZENS OF THEM WON'T BE REHIRED DESPITE HIS LABOR VICTORY MR MURDOCH FACES MAJOR OBSTACLES IN TURNING AROUND THE POST WHICH HAS HAD LOSSES OF ABOUT 15 MILLION A YEAR WITH THE DISRUPTIONS OF MULTIPLE OWNERS BANKRUPTCY AND THE RETAILING RECESSION BOTH CIRCULATION AND ADVERTISING HAVE FALLEN SHARPLY SINCE NEWS CORP LAST OWNED THE PAPER FROM 1976 TO 1988 CIRCULATION ALONE HAS FALLEN TO ABOUT 400000 FROM ONE MILLION A DECADE AGO ALSO THE POST HAS TO COMPETE WITH TWO OTHER DEEPPOCKET TABLOID OWNERS MORTIMER B ZUCKERMAN OF NEW YORK'S DAILY NEWS AND TIMES MIRROR CO WHICH PUBLISHES NEW YORK NEWSDAY A SPOKESMAN FOR MR MURDOCH SAID HE BELIEVES HE CAN REVITALIZE THE PAPER WHILE CONTINUING TO CUT COSTS THOUGH THE POST MIGHT NEVER BE PROFITABLE NEWS CORP INSIDERS SAY MR MURDOCH'S GOAL ISN'T MERELY MONETARY BUT TO REGAIN A MAJOR METROPOLITAN DAILY AS A PLATFORM FOR HIS CONSERVATIVE VIEWS 9310040004 931004 CORPORATE FOCUS SHARP GETS SET TO RIDE HOTTEST TRENDS IN ELECTRONICS FORWARDLOOKING STRATEGY MAY PROVE MODEL FOR AIMLESS JAPANESE GIANTS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MOST OF JAPAN'S ELECTRONICS COMPANIES ARE BEING HAMPERED BY A LACK OF VISION BUT SHARP CORP HAS BEEN SHARPER THE COMPANY IS POSITIONING ITSELF TO CAPITALIZE ON SOME OF THE HOTTEST TRENDS IN ELECTRONICS AND MAY BE HEADED FOR IMPRESSIVE GROWTH A WORLD LEADER IN THE PRODUCTION OF THE LIQUIDCRYSTAL FLATPANEL DISPLAYS USED IN LAPTOP COMPUTERS SHARP LAST YEAR ADDED A NEW TWIST TO CAMCORDERS BY MAKING ONE THAT FEATURES AN LCD SCREEN INSTEAD OF A VIEWFINDER THE OSAKABASED ELECTRONICS COMPANY HAS LINKED UP WITH INTEL CORP TO MAKE FLASH MEMORY CHIPS WHICH HOLD DATA EVEN WHEN THEIR POWER IS CUT IN AUGUST APPLE COMPUTER INC ROLLED OUT ITS LONGAWAITED NEWTON MESSAGEPADMANUFACTURED BY SHARP THE FORWARDLOOKING STRATEGY MAY BE MORE THAN JUST GOOD BUSINESS FOR SHARP IT PROMISES TO SERVE AS A MODEL FOR JAPAN'S AIMLESS ELECTRONICS GIANTS ONE THAT COULD SHOW OTHER COMPANIES HOW TO CAPITALIZE ON THEIR MANUFACTURING PROWESS BY DEVELOPING INNOVATIVE PRODUCTS AND ATTRACTING PARTNERS THAT COMPENSATE FOR THEIR WEAKNESSES I THINK PROBABLY A LOT OF JAPANESE ELECTRONICS EXECUTIVES ARE ENVIOUS OF SHARP'S POSITION RIGHT NOW SAYS CHUCK GOTO A TECHNOLOGY ANALYST WITH SG WARBURG JAPAN INC FOR SEVERAL YEARS CONSUMER ELECTRONICS MANUFACTURERS LIKE SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO HAVE WATCHED PROFITS EVAPORATE ALONG WITH CONSUMER DEMAND FOR THEIR GADGETS WITH MARKETS FOR MAINSTAYS SUCH AS TELEVISIONS VCRS AND CAMCORDERS SATURATED THESE COMPANIES HAVE FACED AN UPHILL BATTLE TO INTEREST CONSUMERS IN NEW PRODUCTS SHARP'S EARLY ENTRY AND CONTINUED INVESTMENT HAVE EARNED IT 40 OF THE MARKET THE COMPANY INTENDS TO INVEST ANOTHER 80 BILLION YEN IN LCD PRODUCTION THROUGH 1995 SHARP HOWEVER HASN'T TREATED LCDS AS AN END IN THEMSELVES THE MOST RECENT EXAMPLE IS SHARP'S VIEWCAM A CAMCORDER WITH AN LCD SCREEN THAT THE COMPANY RELEASED LAST OCTOBER SHARP SAYS IT HAS SOLD 200000 UNITS AND PLANS TO SELL ANOTHER 420000 THROUGH MARCH WORLDWIDE EXCLUDING JAPAN SHARP HAS ALWAYS HAD A REPUTATION FOR INTERESTING INNOVATIVE PRODUCTS SAYS JEFF CAMP AN ANALYST WITH JARDINE FLEMING SECURITIES LTD IN TOKYO WITH THE VIEWCAM SHARP WAS ABLE TO DIFFERENTIATE ITSELF FROM THE PACK A MEASURE OF ITS SUCCESS IS THE EXTENT TO WHICH THE PACK IS FOLLOWING SONY FOR INSTANCE RELEASED ITS OWN LCD CAMCORDER ON AUG 31 IN THE US A SPOKESMAN ADMITS YOU OBVIOUSLY HAVE TO TIP YOUR HAT TO SHARP FOR THE DESIGN IDEA SHARP'S STRENGTH IN LCD PRODUCTION AND IN MINIATURIZATION TECHNOLOGY ALSO GAVE IT ACCESS TO ANOTHER POTENTIALLY HUGE MARKET THAT FOR PERSONAL DIGITAL ASSISTANTS WHICH ARE SORT OF A CROSS BETWEEN AN ELECTRONIC DATEBOOK A PERSONAL COMPUTER AND A CELLULAR PHONE ATTRACTED BY SHARP'S SKILLS APPLE ASKED IT TO HELP DEVELOP A PDA CALLED THE NEWTON MESSAGEPAD WHILE APPLE RETAINS CONTROL OVER THE SOFTWARE AND PROPRIETARY CHIPS USED IN THE MESSAGEPAD SHARP MAKES THE REST FROM THE CASE TO THE LCD DISPLAY THE PARTNERSHIP GIVES SHARP NOT ONLY MANUFACTURING REVENUE FROM APPLE BUT THE RIGHT TO MAKE AND SELL ITS OWN VERSION THE EXPERT PAD THE SHARP AND APPLE VERSIONS ARE COMPATIBLE ALTHOUGH STYLING DIFFERS SLIGHTLY SHARP SAYS THE EXPERT PAD WHICH IT RELEASED IN THE US WHEN APPLE RELEASED THE MESSAGEPAD IS RACKING UP SALES OF ABOUT 10000 UNITS A MONTH COMPARABLE TO WHAT APPLE CLAIMS FOR THE MESSAGEPAD SHARP REALIZES IT WANTS TO BE IN THE NEXT GENERATION OF THAT KIND OF EQUIPMENT SAYS MR CAMP WHILE THE MARKET IS STILL UNDEVELOPED IN THE LONG RUN SHARP WILL DO WELL MANY OF THE STRENGTHS THAT ATTRACTED APPLE BROUGHT IN INTEL WHICH WAS LOOKING FOR MANUFACTURING PARTNERS THAT COULD HELP ESTABLISH ITS DESIGN FOR FLASH MEMORY AS A GLOBAL STANDARD LIKE PDAS THE MARKET FOR FLASH MEMORY ISN'T WELL ESTABLISHED ALTHOUGH ANALYSTS SAY THE CHIPS COULD BEGIN TO REPLACE HARDDISK DRIVES AND OTHER STORAGE DEVICES IN CERTAIN APPLICATIONS SOME ESTIMATE THE FLASH MARKET AROUND 500 MILLION IN SALES COULD REACH ALMOST 3 BILLION BY 1997 WHEN IT APPROACHED SHARP IN EARLY 1992 INTEL HAD A DISAPPOINTING RELATIONSHIP WITH ONE JAPANESE COMPANY NMB SEMICONDUCTOR CO WHICH SINCE HAS BEEN LARGELY ACQUIRED BY NIPPON STEEL CORP AND RENAMED NIPPON STEEL SEMICONDUCTOR CO NIPPON STEEL SEMICONDUCTOR SHIPPED FLASH MEMORY TO INTEL'S DESIGN EARLIER THIS YEAR A YEAR LATER THAN PLANNED SHARP BY CONTRAST WAS SCHEDULED TO DELIVER CHIPS BY EARLY NEXT YEAR BUT IS PLANNING MASS PRODUCTION BY DECEMBER OF THIS YEAR SHARP'S COURSE ISN'T WITHOUT CHALLENGES INTELSTYLE FLASHMEMORY CHIPS WHICH FACE COMPETITION FROM A STANDARD PUSHED BY TOSHIBA CORP AREN'T SURE WINNERS AND APPLE'S NEWTON TECHNOLOGY HAS ALSO COME UNDER FIRE FOR POOR HANDWRITING RECOGNITION WITH ONE INDUSTRY NEWSLETTER EVEN CALLING ON APPLE TO RECALL THE MESSAGEPAD SIMILARLY COMPETITORS LIKE TOSHIBA AND NEC CORP ARE LINING UP TO CHALLENGE SHARP'S LOCK ON THE LCD MARKET MR GOTO THINKS SHARP WILL BE FORCED TO GAMBLE ON THE LCD MARKET WITHIN THE NEXT YEAR SINCE NEC AND TOSHIBA ARE PUSHING NEW LARGER SCREENS AS ALTERNATIVES TO THE 84INCH SCREENS THAT ARE SHARP'S SPECIALTY THAT LEAVES SHARP WITH THE PROSPECT OF FOLLOWING ITS RIVALS OR PUSHING ITS OWN STANDARD SUCH AS A 14INCH LCD IT ANNOUNCED SEPT 21 IF THEY JUST COPY NEC AND TOSHIBA THEY MIGHT LOSE THE DOMINANCE THEY'VE HAD IN THAT MARKET MR GOTO SAYS IF THEY GO WITH THEIR OWN SIZE THEN THEY COULD HAVE DESIGNIN PROBLEMS WITH PC MAKERS EITHER WAY THEY'RE GOING TO HAVE TO TAKE RISKS IN THE NEXT YEAR OR SO 9310040003 931004 LETTERS TO THE EDITOR WHARTON WAS NO MS I DON'T KNOW WHETHER EDITH WHARTON WAS A MISS OR A MRS BUT SHE CERTAINLY WASN'T A MS THE TITLE JULIE SALAMON ATTACHES TO HER IN HER REVIEW OF MARTIN SCORSESE'S THE AGE OF INNOCENCE LEISURE & ARTS SEPT 16 TO TAKE A TITLE THAT DID NOT EVEN BECOME CURRENT UNTIL THE FEMINIST 1970S AND PROJECT IT INTO THE PAST RECONSTRUCTING AND MISREPRESENTING THE PAST TO MAKE IT CONFORM TO CURRENT FASHIONS IS ORWELLIAN WOULD MS SALAMON REFER TO MARTHA WASHINGTON AS MS WASHINGTON 9310040002 931004 BUSINESS BRIEF MOTOROLA INC SINGAPORE UNIT OPENS LAB FOR DEVELOPMENT RESEARCH MOTOROLA ELECTRONICS PTE PLANS TO INVEST 35 MILLION TO FIVE MILLION SINGAPORE DOLLARS US22 MILLION TO 32 MILLION IN THE NEXT THREE YEARS TO UPGRADE ITS RESEARCH AND DEVELOPMENT CAPABILITIES IN THE REPUBLIC THE UNIT OF MOTOROLA INC A US ELECTRONICS CONCERN HAS SET UP A S15 MILLION RESEARCH AND DEVELOPMENT LABORATORY IN SINGAPORE WHICH OFFICIALLY OPENED FRIDAY THE LAB WILL DEVELOP AND TEST NEW MATERIALS PROCESSES AND DESIGNS OF PRINTED CIRCUIT BOARDS IN JANUARY THE COMPANY ANNOUNCED A S65 MILLION INVESTMENT IN A NEW FACILITY FOR PRODUCING CIRCUIT BOARDS 9310040001 931004 COLUMBIA HEALTHCARE TO ACQUIRE HCA COMBINING 2 BIGGEST US HOSPITAL FIRMS PLANNED DEAL SHOWS HOW SWIFTLY INDUSTRY MOVES TO CONSOLIDATE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL THE PROPOSED MERGER BETWEEN COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA ILLUSTRATES THE BREATHTAKING SPEED AT WHICH THE US HEALTHCARE INDUSTRY IS CONSOLIDATING TO MEET DEMANDS FOR COSTEFFECTIVE CARE URGENT PRESSURE FROM BIG CORPORATIONS AND THE CLINTON ADMINISTRATION TO HOLD DOWN HEALTHCARE COSTS IS FORCING HOSPITALS DRUG COMPANIES DOCTORS AND HEALTH PLANS INTO A FLURRY OF MERGERS AND ALLIANCES THEIR GOAL IS TO BE ABLE TO SURVIVE AND THRIVE IN THE EMERGING NEW HEALTHCARE MARKET THAT UNDER THE CLINTON HEALTH REFORM PLAN WOULD BE DOMINATED BY HUGE REGIONAL ALLIANCES PURCHASING CARE FOR HUNDREDS OF THOUSANDS OF CONSUMERS PROVIDERS HAVE TO CONSOLIDATE TO GET STRONGER TO SERVE THE BUYERS SAYS ROBERT J EASTON PRESIDENT OF WILKERSON GROUP INC A NEW YORK CONSULTANT TO THE PHARMACEUTICAL AND MEDICAL EQUIPMENT INDUSTRIES HE PREDICTS THAT HEALTH REFORM WILL TRANSFORM A NATIONAL MARKET MADE UP OF HUNDREDS OF THOUSANDS OF HEALTH PURCHASERS TO ONE OF JUST 300 LARGE BUYERS IN RESPONSE HE SAYS MORE THAN 5000 HOSPITALS AND 550000 DOCTORS WILL CONSOLIDATE INTO ABOUT 1000 HEALTH PLANS THE MERGER WAVE IS GATHERING SPEED JUST LAST JUNE COLUMBIA AGREED TO ACQUIRE GALEN HEALTH CARE INC IN A 32 BILLION STOCK SWAP THAT WAS COMPLETED LAST MONTH ONLY TO TURN AROUND NOW AND PROPOSE ANOTHER BIGGER DEAL IN JULY MERCK & CO THE PHARMACEUTICAL GIANT AGREED TO ACQUIRE MEDCO CONTAINMENT SERVICES INC A DRUG DISCOUNTER AND MANAGEDCARE COMPANY IN A 6 BILLION TRANSACTION THAT SHOOK THE DRUG INDUSTRY IN AUGUST QUALMED INC PUEBLO COLO AND HEALTHNET WOODLAND HILLS CALIF TWO BIG HEALTH MAINTENANCE ORGANIZATIONS AGREED TO A COMBINATION AND JUST 10 DAYS AGO VALUE HEALTH INC A MANAGEDCARE SERVICES CONCERN IN AVON CONN AGREED TO ACQUIRE PREFERRED HEALTH CARE LTD A WILTON CONN PROVIDER OF MANAGED MENTAL HEALTH SERVICES IN A 425 MILLION STOCK SWAP WHILE THESE ACQUISITIONS ARE ALL A LITTLE DIFFERENT THEY ARE ALL INDICATIVE OF THE FACT THAT MANY COMPANIES FEEL IT'S IMPORTANT TO BE LARGER AND OFFER A MORE COMPREHENSIVE ARRAY OF SERVICES SAYS KENNETH S ABRAMOWITZ A HEALTHCARE ANALYST AT SANFORD C BERNSTEIN & CO MOREOVER THESE HIGHPROFILE TAKEOVERS ARE ONLY A PART OF THE PICTURE IN THE US HOSPITALS THAT WERE ONCE FIERCE COMPETITORS ARE MERGING OR FORMING STRATEGIC PARTNERHIPS IN A BID TO SLASH EXCESS CAPACITY AND REDUCE THE NEED FOR INVESTMENT IN EXPENSIVE MEDICAL TECHNOLOGY THEY ARE ALSO FORMING NETWORKS WITH PHYSICIAN GROUPS TO COMPETE WITH HMOS AND OTHER PROVIDER ORGANIZATIONS FOR THE PAST FEW YEARS BIG CORPORATIONS THAT PAY FOR HEALTH CARE FOR THEIR EMPLOYEES HAVE BEEN PRESSING DOCTORS AND HOSPITALS TO CUT COSTS AND PROVIDE MORE EFFICIENT CARE THE CLINTON HEALTHCARE PLAN WHICH WOULD PROVIDE COVERAGE FOR ALL AMERICANS IS RACHETING UP THOSE PRESSURES IN ADDITION TO THE BIG PURCHASING GROUPS THE ADMINISTRATION'S PROGRAM CALLS FOR HOSPITALS DOCTORS AND OTHER PROVIDERS TO ORGANIZE INTO LARGE HEALTH PLANS THAT WOULD COMPETE BASED ON THE COST AND QUALITY OF THEIR SERVICES IT IS EXPECTED THAT MOST OF THE CARE PROVIDED BY THE PLANS WOULD BE PAID ON A FIXED PRICE RATHER THAN A TRADITIONAL FEEFORSERVICE BASIS THAT MEANS THAT INSTEAD OF BEING ASSURED REIMBURSEMENT FOR EVERY TEST AND PROCEDURE THEY PERFORM HEALTH PLANS WOULD BE AT FINANCIAL RISK FOR THEIR SERVICES AN INCENTIVE FOR REDUCING EXCESS CAPACITY AND OTHER COSTS MOREOVER COMPETITION AND OVERALL HEALTH EXPENDITURE TARGETS CURRENTLY PART OF THE CLINTON HEALTH PLAN MAY PUT HEAVY PRESSURE ON PROFIT MARGINS IN THE FUTURE DAMPING RETURNS TO INVESTORS CURRENTLY MR ABRAMOWITZ SAYS PRETAX PROFIT MARGINS AMONG FORPROFIT HOSPITALS RUN AT ABOUT 10 COMPARED WITH OPERATING MARGINS OF 5 FOR A TYPICAL NOTFORPROFIT HOSPITAL ENABLING THEM IF THEY WANT TO OFFER LOWER PRICES THAN NOTFORPROFIT COMPETITORS IN THE FRENZY OF HEALTHCARE MERGERS SIZE ALONE OF COURSE IS NO GUARANTEE OF SUCCESS MR ABRAMOWITZ SEES A NATIONALLEVEL MERGER LIKE COLUMBIAHCA AS PARTICULARLY RISKY SINCE HEALTHCARE PURCHASING DECISIONS ARE MADE IN LOCAL MARKETS INDEED THE BIG PURCHASING ALLIANCES ENVISIONED BY MR CLINTON WON'T LIKELY BE BUYING CARE FROM HOSPITALS BUT FROM INTEGRATED HEALTH PLANS MADE UP OF DOCTORS HOSPITALS OUTPATIENT CLINICS AND HOMECARE COMPANIES AMONG OTHERS MR ABRAMOWITZ SAID THE COLUMBIAHCA MERGER WOULD BENEFIT THE COMPANIES IN ABOUT 10 MARKETS INCLUDING ATLANTA HOUSTON AND MUCH OF FLORIDA WHERE COLUMBIA AND GALEN HAVE OVERLAPPING FACILITIES AND COULD CONSOLIDATE THEM INTO INTEGRATED SYSTEMS IT WILL HELP REDUCE THEIR COST STRUCTURE IF THEY CLOSE ONE HOSPITAL AND MOVE PATIENTS AND PHYSICIANS TO ONE NEARBY BUT IT DOESN'T HELP THEM IN LOUISVILLE WHERE COLUMBIA HAS FOUR HOSPITALS AND HCA HAS NONE IN ADDITION SOME FORPROFIT HOSPITALS ARE AMONG THE HIGHERCOST PROVIDERS IN MANY MARKETS STUDIES SHOW FOR INSTANCE CHARGES AT AN HCA HOSPITAL IN ATLANTA LAST YEAR WERE 41 ABOVE THE NATIONAL AVERAGE AND AMONG THE HIGHEST IN THAT CITY ACCORDING TO A REPORT PUBLISHED BY HCIA INC A BALTIMORE HEALTH DATA CONCERN THE QUESTION IS SAID MR ABRAMOWITZ IN FIVE YEARS WHEN THE MARKETS ARE FAR MORE COMPETITIVE AND HMOS ARE FAR STRONGER WILL SHAREHOLDERS GET AS MUCH REWARD AS THEY WOULD LIKE COLUMBIA IS OBVIOUSLY BOLDLY TRYING TO ANSWER THAT QUESTION SEE RELATED ARTICLE TRANSACTION VALUED AT 57 BILLION LIKELY TO BE JUST A FIRST STEP WSJ OCT 4 1993 9310040101 930922 PEDDLING DREAMS A MARKETING GIANT USES ITS SALES PROWESS TO PROFIT ON POVERTY THORN EMI'S RENTAL CENTERS PUSH SOFAS RINGS VCRS TO THE POOR AT HIGH RATES REPOS AND COUCH PAYMENTS' BY ALIX M FREEDMAN STAFF REPORTER OF THE WALL STREET JOURNAL RECORDING STARS TINA TURNER FRANK SINATRA AND THE BEATLES HAVE MADE THORN EMI PLC FAMOUS IN ENTERTAINMENT CIRCLES BUT A VERY DIFFERENT GROUP OF PEOPLE IS NOW MAKING THORN RICH THOUGH IT DOESN'T ADVERTISE THE FACT THORN'S MOST PROFITABLE SUBSIDIARY HAS NOTHING TO DO WITH THE SUPERSTARS WHO RECORD UNDER ITS VARIOUS MUSIC LABELS INSTEAD THE LARGEST SINGLE CONTRIBUTOR TO THORN'S OPERATING PROFIT IS ITS MOST OBSCURE AND BY FAR ITS LEAST GENTEEL UNIT RENTACENTER A CHAIN THAT THRIVES BY RENTING REFRIGERATORS FURNITURE DIAMOND PINKIE RINGS AND ASSORTED OTHER MERCHANDISE TO AMERICA'S URBAN AND RURAL POOR SINCE BUYING RENTACENTER IN 1987 LONDONBASED THORN HAS EXPANDED IT BRISKLY USING BOTH ACQUISITIONS AND AGGRESSIVE MARKETING TACTICS INTRODUCED BY THE UNIT'S TOP EXECUTIVE A FORMER PIZZA HUT MARKETING WHIZ THORN NOW THOROUGHLY DOMINATES THE INDUSTRY WHICH IS KNOWN AS RENTTOOWN BECAUSE RENTERS WHO MAKE EVERY WEEKLY PAYMENT USUALLY FOR 78 WEEKS BECOME OWNERS RENTACENTER USA CONTROLS 25 OF THE 28 BILLION US MARKET THE CHAIN HAS MORE OUTLETS THAN ITS FOUR BIGGEST COMPETITORS COMBINED ALONG THE WAY THOUGH ITS HIGHPRESSURE METHODS HAVE SOMETIMES TURNED COERCIVE AND ABUSIVE ACCORDING TO ACCOUNTS BY ABOUT 50 FORMER STORE EMPLOYEES AND COMPANY EXECUTIVES WHO HAVE LEFT WITHIN THE PAST 18 MONTHS SCRAMBLING TO MEET AMBITIOUS SALES TARGETS SET UNDER THORN RENTACENTER EMPLOYEES ROUTINELY ENCOURAGE UNSOPHISTICATED CUSTOMERS TO RENT MORE GOODS THAN THEY CAN AFFORD THESE PEOPLE SAY THEN WHEN CUSTOMERS FALL BEHIND IN PAYMENTS RENTACENTER REPOSSESSES THE GOODS AND RERENTS THEM CUSTOMERS WHO MANAGE TO MAKE EVERY INSTALLMENT MAY END UP PAYING SEVERAL TIMES THE ITEM'S RETAIL VALUE AT AN EFFECTIVE ANNUAL INTEREST RATE IF THE TRANSACTION IS VIEWED AS A CREDIT SALE THAT CAN TOP 200 IN THE UTAH MARKET FOR EXAMPLE RENTACENTER CUSTOMERS PAY A TOTAL OF 100356 OVER 18 MONTHS FOR A NEW SANYO VCR WITH A SUGGESTED RETAIL PRICE OF 28998 FOR AN EFFECTIVE ANNUAL INTEREST RATE OF A BREATHTAKING 231 WHILE THE RENTTOOWN BUSINESS HAS ALWAYS BEEN GRITTY THORN HAS MADE IT EVEN TOUGHER MANY OF THOSE INTERVIEWED BELIEVE EMPLOYEES HANDLING REPOSSESSIONS HAVE BEEN KNOWN TO BRING ALONG MEMBERS OF A FEARED MOTORCYCLE GANG AS WELL AS TO VANDALIZE CUSTOMERS' HOMES EXTRACT SEXUAL FAVORS FROM STRAPPED CUSTOMERS AND EVEN IN ONE INSTANCE FORCE A LATE PAYER TO DO INVOLUNTARY LABOR SAYS BRIAN BAKER A FORMER STORE MANAGER IN CAMBRIDGE MD THIS IS ONE OF THOSE JOBS WHERE IF YOU HAVE ANY KIND OF CONSCIENCE YOU WON'T SLEEP WELL AT NIGHT NOW A FEDERAL CRACKDOWN MAY BE IN THE OFFING HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ A DEMOCRAT FROM TEXAS IS EXPECTED NEXT WEEK TO INTRODUCE A BILL THAT WOULD CLASSIFY RENTTOOWN TRANSACTIONS AS CREDIT SALES SINCE SOME 30 STATES CAP CREDITSALE INTEREST RATES AT 21 OR LESS THE BILL WOULD SLASH WHAT RENTACENTER AND ITS RIVALS CAN CHARGE IN ADDITION TWO CLASSACTION SUITS FILED IN MINNESOTA FEDERAL COURTS ALLEGE THAT RENTACENTER CHARGES USURIOUS INTEREST RATES ONE SUIT IS PENDING AND RENTACENTER WON THE FIRST ROUND OF THE SECOND SUIT WHICH HAS BEEN APPEALED RENTACENTER DENIES THAT ITS TRANSACTIONS ARE CREDIT SALES BECAUSE MOST CUSTOMERS DON'T END UP BUYING THE PRODUCT AND THEY CAN CANCEL AT ANY TIME THUS IT ARGUES IT DOESN'T CHARGE INTEREST AT ALL RENTACENTER OFFICIALS DO CONCEDE THAT ABUSES OCCUR AND THAT THE RENTTOOWN BUSINESS HAS IN THE PAST BEEN SLEAZIER THAN MOST BUT THEY SAY THE COMPANY SEES ITSELF AS PART OF THE SOLUTION RATHER THAN AS PART OF THE PROBLEM RENTACENTER CHIEF EXECUTIVE WALTER E BUD GATES POINTS TO HIS EFFORTS TO IMPROVE EMPLOYEE TRAINING TO SPIFF UP STORES AND TO ENFORCE A RESPECT ALL CUSTOMERS PROGRAM THAT IS TRUMPETED ON WALL POSTERS IN OUTLETS HE SAYS HE IS CRACKING DOWN ON DICEY COLLECTION AND REPOSSESSION PRACTICES THE CARNIVAL INDUSTRY WAS A DOWNANDDIRTY NASTY INDUSTRY AND ALONG CAME DISNEY WHO REWROTE THE STANDARD AND OVER TIME THE WHOLE INDUSTRY CAME UP HE SAYS WE'RE TRYING TO DO THE SAME THING BUT FORMER STORE MANAGER RANDY RICHARDS LIKE MANY OTHERS INTERVIEWED CONTENDS THAT THE CLEANUP IS IN NAME ONLY ON PAPER THIS COMPANY PURIFIED ITSELF BY INTRODUCING THE NEW RESPECT' CONCEPT HE SAYS BUT IN REALITY NOTHING CHANGED HE SAYS THAT IN 1991 A FULL FOUR YEARS AFTER THORN TOOK OVER HE HIMSELF PICKED AN APARTMENT LOCK WITH A CREDIT CARD IN ORDER TO RETRIEVE A LATE PAYER'S LIVINGROOM FURNITURE A NUMBER OF THE FORMER EMPLOYEES INTERVIEWED WERE FIRED SOME FOR ALLEGEDLY SERIOUS WRONGDOING BUT THEIR ACCOUNTS OF WORKING CONDITIONS AND CUSTOMER TREATMENT AT RENTACENTER WERE REMARKABLY UNIFORM THEIR ACCOUNTS WERE ALSO CONSISTENT WITH THOSE OF EMPLOYEES WHO QUIT AND THOSE OF CUSTOMERS EVEN THOUGH THE PEOPLE INTERVIEWED CAME FROM MANY DIFFERENT PARTS OF THE COUNTRY FOR LOWINCOME CUSTOMERS RENTACENTER HAS TREMENDOUS APPEAL THE CHAIN GIVES THEM IMMEDIATE USE OF BRANDNAME MERCHANDISE AND THE WEEKLY PAYMENTS ARE USUALLY LESS THAN 20 BUT WHILE IN THEORY CUSTOMERS CAN EVENTUALLY OWN THE GOODS OUTRIGHT THE COMPANY SAYS THREE OUT OF EVERY FOUR ARE UNABLE TO MEET ALL THEIR PAYMENTS THEIR FAILURE IS PARTIALLY RESPONSIBLE FOR THORN'S SUCCESS THE COMPANY EARNS CONSIDERABLY MORE BY RENTING REPOSSESSING AND THEN RERENTING THE SAME GOODS THAN IT DOES IF THE FIRST CUSTOMER MAKES ALL THE PAYMENTS DERRICK MYERS WHO WAS FIRED AS MANAGER OF THE RENTACENTER STORE IN VICTORVILLE CALIF RECALLS ONE PARTICULAR PHILCO VCR FOR EXAMPLE THAT HE SAYS RETAILED FOR ABOUT 119 BUT THAT BROUGHT IN MORE THAN 5000 IN A FIVEYEAR PERIOD THAT MEANS THE MOST PROFITABLE CUSTOMERS ARE PEOPLE LIKE MINNEAPOLIS WELFARE MOTHER ANGELA ADAMS WHO SAYS RENTACENTER SALESPEOPLE CAJOLED HER INTO RENTING MORE THAN A DOZEN ITEMS AT A MONTHLY COST THAT REACHED ABOUT 325 THOUGH THE SALESPEOPLE KNEW HOW LITTLE SHE EARNED THEY PUSHED IT ON ME SHE SAYS WHEN SHE FELL BEHIND IN HER PAYMENTS IN LATE 1991 RENTACENTER SUED HER AND REPOSSESSED THE GOODS RANGING FROM A BEDROOM SET TO TWO VCRS MS ADAMS IS NOW A NAMED PLAINTIFF IN ONE OF THE TWO CLASSACTION SUITS THIS ONE PENDING IN FEDERAL COURT IN MINNEAPOLIS RENTACENTER DECLINES COMMENT EVEN IF A CUSTOMER CAN'T AFFORD IT AND YOU KNOW IT AND THEY KNOW IT WE'LL RENT TO THEM ANYWAY SAYS ROD COMEAUX A FORMER STORE MANAGER FROM ONLEY VA WHO WAS FIRED A YEAR AGO FOR UNRELATED REASONS WE CAN ALWAYS GET IT BACK AND RERENT IT TO OTHERS HE SAYS RENTACENTER'S MR GATES DENIES THAT SALESPEOPLE PUT EXCESSIVE PRESSURE ON CUSTOMERS OR INTENTIONALLY OVERLOAD THEM WITH GOODS ON AVERAGE CUSTOMERS RENT 285 ITEMS A MONTH AT A TOTAL MONTHLY COST OF 9907 AND THEY ARE ABLE TO CANCEL RENTALS AT ANY TIME WITHOUT A PENALTY HE POINTS OUT STORE MANAGERS WHO ARE REQUIRED TO OBTAIN INCOME AND OTHER FINANCIAL INFORMATION FROM CUSTOMERS IDEALLY SHOULD ACT AS FINANCIAL PLANNERS FOR CUSTOMERS HE SAYS ADDING THAT THE WORST THING EMPLOYEES CAN DO IS TO RENT TO CUSTOMERS WHOSE EYES ARE BIGGER THAN THEIR STOMACHS RENTACENTER SAYS ITS CUSTOMER BASE IS 25 TO 30 BLACK AND 10 TO 15 HISPANIC AND JUST 15 ARE ON WELFARE OR GOVERNMENT SUBSIDIES BUT FORMER STORE MANAGERS CONSISTENTLY MAINTAIN THAT THE TOTAL ON GOVERNMENT ASSISTANCE IS MORE THAN 25 WITH SOME CLAIMING UP TO 70 INDEED THEY UNANIMOUSLY REPORT THAT SALES ALWAYS SPIKED ON MOTHER'S DAY AS THEY CALL THE DAY WHEN WELFARE MOTHERS GET THEIR CHECKS HOW DID THORN COME TO ENTER SUCH A HARSH BUSINESS A PREDECESSOR COMPANY THORN ELECTRONICS PLANTED THE SEEDS WHEN IT OPENED A RENTAL STORE OUTSIDE LONDON IN 1931 AND THEN EXPANDED THE CHAIN THROUGHOUT EUROPE HALF A CENTURY LATER AFTER THE 1979 MERGER THAT CREATED THORN EMI THE CONGLOMERATE WAS STRUGGLING WITH POOR RESULTS FROM ITS HODGEPODGE OF DISPARATE BUSINESSES AND DECIDED TO TRY ITS LUCK IN THE RENTAL MARKET IN THE US TO GET A FOOT IN THE DOOR SIR COLIN SOUTHGATE THORN'S CHIEF EXECUTIVE CONTACTED GOLDMAN SACHS & CO IN 1987 AS IT HAPPENED TOM DEVLIN THE BIGGEST PLAYER IN THE FRAGMENTED US RENTTOOWN MARKET WAS LOOKING FOR A BUYER FOR RENTACENTER THE 495STORE CHAIN HE FOUNDED IN 1973 AND HE TOO HAD APPROACHED GOLDMAN SACHS A DEAL WAS STRUCK ALMOST OVERNIGHT WITH SIR COLIN PAYING A LAVISH 594 MILLION OR 42 TIMES EARNINGS MR DEVLIN STEPPED ASIDE AND MR GATES ALREADY AT RENTACENTER BECAME ITS NEW CHIEF EXECUTIVE HE QUICKLY BEGAN BUYING UP SMALL COMPETITORS RENTALS NOW ACCOUNT FOR ALMOST A THIRD OF THORN EMI'S TOTAL REVENUE WHILE MUSICINCLUDING THORN'S EMI CHRYSALIS AND CAPITOL LABELSACCOUNTS FOR JUST A HAIR MORE A FORMER SENIOR VICE PRESIDENT OF MARKETING AT PIZZA HUT MR GATES HAD MIGRATED TO RENTACENTER IN 1986 AFTER FAILING TO LAND THE TOP JOB AT THE PIZZA CHAIN DESPITE HIS ROOKIE STATUS IN RENTTOOWN MR GATES HAD A MARKETING MAN'S FEEL FOR DEMOGRAPHICS PSYCHOGRAPHICS AND NEW AGE NOTIONS OF CUSTOMER EMPOWERMENT INSPIRED BY SOME COMPANY RESEARCH INDICATING THAT HIS RENTERS CRAVED GOOD TREATMENT EVEN MORE THAN LOW PRICES HE BEGAN TO MERCHANDISE RESPECT DEFYING INDUSTRY WISDOM THAT POOR CUSTOMERS WOULD BE INTIMIDATED BY SNAZZY STORES FOR EXAMPLE MR GATES HAS SPENT 40 MILLION TO MAKE EACH RENTACENTER OUTLET SEEM AN IDEALIZED VERSION OF HOME AND HEARTH HAPPY FAMILY LIFESTYLE POSTERS IN A STORE'S CHOICE OF BLACK HISPANIC OR CAUCASIAN ADORN THE OUTLETS' WALLS PROP KITS DISPATCHED FROM THE HOME OFFICE IN WICHITA KAN PROVIDE COZY TOUCHES LIKE PLANTS AND PRINT BEDSPREADS EMPLOYEES UNDER MR GATES ARE REQUIRED TO GREET CUSTOMERS PREFERABLY BY NAME WITHIN 10 SECONDS OF THEIR ENTRANCE AND TO CONDUCT PAYMENT DISPUTES OUT OF EARSHOT OF OTHER RENTERS STORES ARE ALSO ENCOURAGED TO KEEP FRESH COFFEE BREWING THE CUSTOMER SHOULD FEEL LIKE THIS IS HOME A PLACE WHERE I FEEL COMFORTABLE AND THAT CARES ABOUT ME HE EXPLAINS THOSE SOFT TOUCHES ARE COUPLED WITH HARDCORE SALESMANSHIP ACCORDING TO A THICK TRAINING MANUAL SALESPEOPLE ARE SUPPOSED TO QUOTE THE WEEKLY AND MONTHLY RENTAL RATES THE MANUAL DOESN'T INSTRUCT EMPLOYEES TO QUOTE THE TOTAL COST AND FORMER STORE MANAGERS SAY THEY MADE SURE THEY NEVER DID IN FACT IN 40 STATES THE TOTAL ISN'T EVEN ON THE PRICE TAG TEN STATES REQUIRE THAT IT BE LISTED ON PRICE TAGS A RULE RENTACENTER SAYS IT WILL HONOR IN ALL 50 STATES BY NEXT MONTH INSTEAD THE MANUAL INSTRUCTS EMPLOYEES TO FOCUS ON FEATURES AND BENEFITS SUCH AS RENTACENTER'S FREE DELIVERY AND REPAIR AND MOST OF ALL THE LOW WEEKLY PRICE BUT THE ADVERTISED WEEKLY PRICE IS DESIGNED TO YIELD EACH STORE ABOUT 3 1/2 TIMES ITS COST OF PURCHASING THE MERCHANDISE FROM RENTACENTER HEADQUARTERS THE TOTAL IS JACKED UP FURTHER BY A ONETIME PROCESSING FEE TYPICALLY 750 AND LATE FEES TYPICALLY 5 THE TOTAL COST IS USUALLY REVEALED ONLY IN THE RENTAL AGREEMENT THAT CUSTOMERS SIGN AT THE END OF THE SALES PROCESS FORMER STORE MANAGERS SAY TO BOOST RENTACENTER'S PROFITS EMPLOYEES ALSO PUSH A CUSTOMER PROTECTION PLAN THAT OFFERS MINIMAL BENEFITS BUT THAT 95 OF CUSTOMERS END UP SUBSCRIBING TO IT'S BETTER THAN INSURANCE SALESWOMAN LAURA DAUPINO OF THE BLOOMFIELD NJ STORE WAS OVERHEARD TELLING AN UNEMPLOYED WELFARE MOTHER RECENTLY YET UNLIKE INSURANCE IT DOESN'T REPLACE STOLEN OR DESTROYED ITEMS OR REIMBURSE CUSTOMERS FOR THEIR LOSS IT OFFERS CUSTOMERS BASICALLY ONE BENEFIT IT PREVENTS RENTACENTER FROM SUING CUSTOMERS IF GOODS ARE STOLEN OR DESTROYED FOR RENTACENTER HOWEVER THE BENEFIT IS CONSIDERABLY LARGER THE PROTECTION PLAN IS A 29 MILLION ANNUAL REVENUE BOOSTER MUCH OF WHICH DROPS TO THE BOTTOM LINE AS DOES MOST OF THE 27 MILLION RACKED UP FROM THE OTHER FEES ACCORDING TO INTERNAL COMPANY FINANCIAL DOCUMENTS RENTACENTER HAS LONG JUSTIFIED ITS HIGH PRICES BY CITING CUSTOMER DEFAULTS AND THE COSTS ASSOCIATED WITH ITS FREE REPAIRS BUT PART OF RENTACENTER'S SECRET OF SUCCESS IS THAT THOSE COSTS ARE MINIMAL INTERNAL DOCUMENTS SHOW ITS SERVICE EXPENSES RAN 33 OF RENTAL REVENUE IN FISCAL 1993 THOUGH RENTACENTER SAYS THE ACTUAL FIGURE IS CLOSER TO 10 AND ITS TOTAL INVENTORY LOSSES FROM JUNKED MERCHANDISE AND SKIPS AND STOLENS AS IN CUSTOMERS WHO SKIP TOWN RUN A BIT OVER 2 OF REVENUE INDEED SAYS GRANVILLE QUINTON RENTACENTER'S FORMER DIRECTOR OF BUDGETS FORECASTS AND FINANCIAL SYSTEMS THEY HAVE NO HIGHER SKIP OR STOLEN RATE THAN A CONVENTIONAL RETAILER RENTACENTER CONCEDES THAT THIS IS TECHNICALLY TRUE BUT SAYS THE LOW RATE IS MISLEADING BECAUSE EACH LOST ITEM MEANS THE FAR GREATER LOSS OF FUTURE RENTAL INCOME COURTING THE PROJECTS IN PART TO BEEF UP SALES FURTHER RENTACENTER URGES CUSTOMERS TO PAY THEIR RENTAL FEES IN PERSON EACH WEEK THAT GIVES EMPLOYEES A CHANCE ACCORDING TO THE TRAINING MANUAL TO PITCH ADDED PRODUCTS EMPLOYEES ARE ALSO SUPPOSED TO TRY TO UPSELL OR TRADE UP RENTERS TO MORE EXPENSIVE VERSIONS OF THE SAME PRODUCT IN SOME MARKETS EMPLOYEES ARE EXPECTED TO HANG FLIERS ON HUNDREDS OF HOUSINGPROJECT DOORS EACH WEEK IN A DRILL KNOWN AS BLANKET BROCHURING YOU WOULD BROCHURE THE PROJECTS ONE WEEK BEFORE THE WELFARE CHECKS CAME OUT SO YOU ALREADY HAD THAT SEED PLANTED IN THEIR MIND RECALLS GERALD DEFIORE WHO WAS FIRED AS THE STORE MANAGER IN SPARTANBURG SC THEN THE DAY THE CHECKS CAME OUT YOU'D GO BACK AND KNOCK ON DOORS AND FILL OUT THE WORK FORMS THERE CORPORATE WAS IN ON IT THE STORES WERE IN ON IT THESE PEOPLE DIDN'T STAND A CHANCE RENTACENTER SAYS THAT BLANKET BROCHURING IS OPTIONAL AND THAT TARGETING A PROJECT WOULD BE LOGICAL IF IT WAS IN A STORE'S TERRITORY COMPLEMENTING THOSE TACTICS ARE AN ARRAY OF LESS SAVORY TECHNIQUES NOT SANCTIONED FROM ABOVE MR DEFIORE SAYS HE SCANNED THE OBITUARY PAGE FOR INSTANCE AND SENT CHEAP FLOWER ARRANGEMENTS SIGNED FROM YOUR FRIENDS AT RENTACENTER TO THE BEREAVED AT A FUNERAL EVERYBODY LOOKS AT WHO THE FLOWERS ARE FROM HE EXPLAINS AND WHEN THEY DROP BY THE STORE TO THANK YOU YOU CAN HOOK THEM RENTACENTER'S WICHITA HEADQUARTERS STAFF BACKS UP THOSE EFFORTS WITH AN 185 MILLION DIRECTMAIL PROGRAM SO SOPHISTICATED THAT IT CAN TAILOR BROCHURES TO A SINGLE BLOCK MUCH OF THE BLITZ FOCUSES ON NEW PROSPECTS PRIMARILY THE SIX REFERENCES THAT CUSTOMERS MUST LIST ON AN APPLICATION FORM FORMER EMPLOYEES SAY THEY TYPICALLY CALLED ONLY TWO REFERENCES USING THE REST SIMPLY FOR MARKETING PURPOSES A SAMPLE LETTER OPENS LIKE THIS WOULDN'T YOU RATHER WATCH A BIG SCREEN TV THAN THE ONE YOU HAVE NOW OTHER TARGETS INCLUDE FORMER CUSTOMERS WHO HAD FAILED TO MAKE ALL THEIR PAYMENTS EVEN THOSE WHO HAVE HAD GOODS FORCIBLY REPOSSESSED RECEIVE COUPONS BLARING IN BOLD TYPE WE WANT YOU BACK ADDITIONAL LETTERS AND COUPONS ARE AIMED AT CUSTOMERS WHO ARE ON THE VERGE OF PAYING OFF A PRODUCT THEY HAVE BEEN RENTING SOME GET PLASTIC GOLD CARDS WHICH LOOK LIKE CREDIT CARDS AND ENCOURAGE ADDITIONAL RENTALS WITH PERKS LIKE 1 TO 2 OFF WEEKLY RENTAL CHARGES IF RENTACENTER SALESPEOPLE ARE UNUSUALLY AGGRESSIVE THEY HAVE GOOD REASON THEIR JOBS DEPEND ON IT MR GATES HAS HONED A TOUGH SALESQUOTA SYSTEM KNOWN INTERNALLY SIMPLY AS THE PLAN WHICH CALLS FOR EVERY STORE TO MEET WEEKLY AND MONTHLY TARGETS THAT RIVALS SAY ARE FAR MORE AMBITIOUS THAN THEIR OWN THE STORES' RESULTS ARE MONITORED DAILY BY ZONE MANAGERS IN CHARGE OF ROUGHLY 10 STORES EACH AS WITH MANY OTHER COMPANIES THAT USE SALES TARGETS IF RENTACENTER MANAGERS AND EMPLOYEES EXCEED THEIR QUOTAS THEY ARE ELIGIBLE FOR CARS PROMOTIONS AND BONUSES BUT AT RENTACENTER IF THEY FAIL TO MAKE PLAN THEY ARE FIRED WITH EXTRAORDINARY SPEED IN UTAH'S SIXOUTLET MARKET OF 28 EMPLOYEES FOR EXAMPLE MORE THAN A DOZEN PEOPLE WERE FIRED INCLUDING SEVEN STORE MANAGERS DURING THE 18 MONTHS ENDED IN JULY ACCORDING TO TWO OF THE FORMER MANAGERS THEY SAY FALLING SHORT OF PLAN WAS THE MAJOR REASON THOUGH RENTACENTER SAYS THERE WERE NUMEROUS FACTORS AND THAT SOME DEPARTURES WERE VOLUNTARY RENTACENTER'S EMPLOYEE PHILOSOPHY IS BURN AND TURN CONTENDS FORMER LAS VEGAS STORE MANAGER MR RICHARDS WHO SAYS HE QUIT IN MAY 1992 BECAUSE HIS ZONE MANAGER INSISTED HE WORK 80 TO 100 HOURS A WEEK SOMETHING THE ZONE MANAGER DENIES IT'S BRING THEM IN AND WORK THEM UNTIL THEY CAN'T TAKE IT ANY MORE AND SEND THEM ON THEIR WAY MR RICHARDS SAYS MR GATES ACKNOWLEDGES THAT THE COMPANY'S TOTAL TURNOVER SHOULD BE LESS THAN HALF ITS CURRENT ANNUAL LEVEL OF 56 COMPANYWIDE EXCLUDING HEADQUARTERS AND 25 AT THE STOREMANAGER LEVEL THE COMPANY IS NOW WORKING TO RETAIN ITS PEOPLE BY BEEFING UP ITS TRAINING PROGRAMS AND BY EVALUATING EMPLOYEES BASED ON CUSTOMER SERVICE AND OTHER FACTORS RATHER THAN SIMPLY ON NUMBERS HE SAYS IN ANY CASE RENTACENTER'S SALES AND MARKETING STRATEGIES HAVE PRODUCED A HUGE PAYOFF FOR THE FISCAL YEAR ENDED MARCH 31 1993 THE 1200STORE UNIT RACKED UP OPERATING PROFIT OF ABOUT 90 MILLION ON REVENUE OF 5603 MILLION A 16 MARGIN THAT IS EYEPOPPING BY RETAIL STANDARDS FOR THE FIRST TIME RENTACENTER WAS ALSO THORN'S SINGLE MOST PROFITABLE SUBSIDIARY CONTRIBUTING 14 OF THORN EMI'S OPERATING PROFIT WHERE STORELEVEL PROFIT MARGINS AVERAGE 15 TO 20 WHEN SMALLER OPERATORS RUN SUCH STORES THORN'S OUTLETS SHOW PROFIT MARGINS OF 20 TO 30 CONVENTIONAL RETAILERS' STORE PROFIT MARGINS RUN AT ABOUT 25 ACCORDING TO MANAGEMENT HORIZONS INC NO WONDER SIR COLIN RECENTLY TOLD A LAS VEGAS MEETING OF STORE MANAGERS THAT THEIR UNIT WAS THE CLOSEST COMPANY TO MY HEART IN THORN EMI AND THAT MOST BUSINESSMEN WOULD GIVE AN ARM A LEG AND PROBABLY HALF THEIR BODY FOR ITS PERFORMANCE THORN EXECUTIVES SAY THERE IS NOTHING INSIDIOUS ABOUT RENTACENTER'S STRATEGY OF COURTING CUSTOMERS WHO ARE OF LIMITED MEANS AND OF TREATING THEM WELL CUSTOMERS RECEIVE FANTASTIC SERVICE SAYS SIR COLIN WHO PROFESSES TO BE ALWAYS PUZZLED WHY THE RENTTOOWN INDUSTRY IS BADLY REGARDED RENTACENTER HE ADDS TREATS THEM LIKE KINGS AND QUEENS CUSTOMERS LIKE CAROL BAKER A WAITRESS AT A RESORT HOTEL IN BOLTON LANDING NY ARE APPRECIATIVE THE PRICES COULD BE CHEAPER SAYS MS BAKER WHOSE HOME IS ALMOST COMPLETELY FURNISHED BY RENTACENTER BUT THEY TREAT ME LIKE I'M A SOMEBODY SHE LIKES BEING OFFERED A CUP OF COFFEE AT HER LOCAL RENTACENTER SHE SAYS AT SEARS YOU'RE A NUMBER AT RENTACENTER YOU'RE A FRIEND TOO FORMER EMPLOYEES AND OTHER CUSTOMERS SEE THINGS DIFFERENTLY THE RENTACENTER PHILOSOPHY SAYS MR COMEAUX THE FORMER STORE MANAGER IN VIRGINIA IS THAT IF YOU TREAT THE CUSTOMER LIKE THEY'RE ROYALTY YOU CAN BLEED THEM THROUGH THE NOSE IN THE END IT ISN'T UNUSUAL FOR FLATTERED CUSTOMERS TO SIGN UP FOR THREE OR MORE RENTAL AGREEMENTS AT A TIME AND SOME RENT FAR MORE FOR INSTANCE ROBERT BALL AN UNEMPLOYED HUNTWESSON FACTORY WORKER IN TOLEDO OHIO SAYS HE IS CURRENTLY HANDING OVER ALL OF HIS UNEMPLOYMENT CHECKS TO PAY FOR 13 DIFFERENT AGREEMENTS TOTALING ALMOST 900 A MONTH INEVITABLY SOME CUSTOMERS TAKE ON MORE THAN THEY CAN HANDLE SO IT IS THAT BEHIND EVERY RENTACENTER SALESMAN LURKS HIS DOPPELGANGER REPO MAN REPOSSESSIONS ARE NEVER PRETTY AND THE PRETHORN ERA WAS NO EXCEPTION BUT BECAUSE OF THE AMBITIOUS TARGETS PEOPLE WHO HAVE WORKED UNDER BOTH REGIMES SAY EMPLOYEES NOW PUSH HARDER THAN EVER CUSTOMERS TYPICALLY MAKE THEIR PAYMENTS EVERY SATURDAY AND THROUGHOUT THE MORNING STORE EMPLOYEES WORK THE PHONES EXACTING PROMISES FROM THE TARDY IN THESE CONVERSATIONS FORMER CUSTOMERS SAY THEY HAVE BEEN HARASSED INTIMIDATED AND EVEN THREATENED WITH VIOLENCE ROBERT KEELING A FORMER MANAGER IN GASDEN ALA WHO WAS FIRED IN MARCH IN PART FOR CARRYING A GUN SAYS THAT A FAVORITE PLOY IS FALSELY INFORMING CUSTOMERS OR THEIR RELATIVES THAT A WARRANT FOR ARREST HAS BEEN ISSUED FOR THE THEFT OF RENTAL PROPERTY THE TELEPHONIC ONSLAUGHT RESUMES ON MONDAY MORNINGS WHEN 30 OF CUSTOMERS ARE GENERALLY PAST DUE IF EMPLOYEES HAVEN'T REACHED A CUSTOMER BY TUESDAY THEY HIT THE ROAD ALTHOUGH IT IS AGAINST COMPANY RULES THEY OFTEN MAKE A MILK RUN PICKING UP PAYMENTS FROM CUSTOMERS PERSONALLY OR THEY LEAVE A MESSAGE ON THE DOOR INSTRUCTING THE CUSTOMER TO CONTACT THEM THIS PROCESS IS REPEATED ALL WEEK LONG IF THEY STILL DON'T GET RESULTS IT'S REPO TIME IN THE COMPANY'S VANS EMPLOYEES COMB NEIGHBORHOODS LOOKING FOR SLIGHTLY PASTDUE CUSTOMERS AND THE MORE ELUSIVE SKIPS IN THEORY RENTACENTER EMPLOYEES HEW TO THE FAIR DEBT COLLECTION PRACTICES ACT A FEDERAL LAW THAT DOESN'T APPLY TO RENTACENTER IT COVERS ONLY THIRDPARTY DEBT COLLECTORS BUT THAT RENTACENTER SAYS IT VOLUNTARILY COMPLIES WITH UNDER THESE RULES DEBT COLLECTORS CAN'T HARASS CUSTOMERS FOR EXAMPLE OR ENGAGE IN VIOLENT OR CRIMINAL ACTS MR GATES CITES SUCH MEASURES AS PROOF THAT HE IS DOING HIS UTMOST TO MAKE RENTACENTER'S COLLECTION OPERATION SQUEAKYCLEAN THE CEO SAYS HIS QUEST TO TRANSFORM RENTACENTER'S PROFITDRIVEN ENTREPRENEURIAL CULTURE INTO A SERVICEDRIVEN ENTREPRENEURIAL CULTURE IS THE HARDEST THING I HAVE EVER DONE I HAVEN'T GOTTEN EVERYONE DRINKING THE KOOLAID YET BUT FORMER EMPLOYEES CONTEND THAT MR GATES'S STRICT ENFORCEMENT OF PAYMENT COLLECTIONS HAS IN SOME CASES ACTUALLY STYMIED REFORM BEFORE THORN RENTACENTER FOCUSED SOLELY ON THE NUMBER OF ACCOUNTS PAST DUE NOT THE AMOUNT OF DELINQUENT DOLLARS OR UNCOLLECTED REVENUE EARLY ON MR GATES DECREED THAT ONLY 57 AND CURRENTLY 55 OF A STORE'S TOTAL MONTHLY RENTAL PAYMENTS CAN GO UNCOLLECTED AND ZONE MANAGERS HAVE TENDED TO SET EVEN MORE AMBITIOUS GOALS IN CONTRAST SMALLER RENTTOOWN BUSINESSES GENERALLY LEAVE 8 TO 10 OF BILLS UNCOLLECTED EACH MONTH FAILURE TO CONTROL DELINQUENT DEBTS WILL BE YOUR DOWNFALL SO YOU DO AS MUCH AS YOUR CONSCIENCE PERMITS SAYS GARY SCHIEFER A FORMER STORE MANAGER IN COLUMBUS OHIO WHO WAS ABRUPTLY FIRED IN MAY 1992 WHEN HIS DELINQUENT DOLLARS TOPPED 9 HIS FORMER ZONE MANAGER SAYS HE WAS FIRED FOR OTHER REASONS MR BAKER THE FORMER STORE MANAGER IN MARYLAND CHARACTERIZES REPOSSESSIONS AS THE DIRTIEST PART OF THE WHOLE BUSINESS IT IS UNQUESTIONABLY THE MOST CREATIVE ON HALLOWEEN NIGHT IN 1991 THREE RENTACENTER EMPLOYEES IN UTICA NY DRESSED UP RESPECTIVELY AS THE COOKIE MONSTER A GORILLA AND AN ALIEN LIFE FORM AND KNOCKED ON A CUSTOMER'S DOOR ONCE INSIDE THEY SUCCESSFULLY REPOSSESSED A HOMEENTERTAINMENT SYSTEM ON WHICH PAYMENTS HADN'T BEEN MADE IN ALMOST THREE MONTHS GARY GERHARDT THE STORE MANAGER WHO BLESSED THIS PLAN CALLS THE RUSE A LASTDITCH EFFORT ADDING IT WAS THE ONLY WAY WE COULD THINK TO GET SOMEONE IN THE DOOR AT THE CRACK OF DAWN ONE SUNDAY MR MYERS THE STORE MANAGER IN VICTORVILLE CALIF UNTIL MARCH 1992 PULLED OFF A PARTICULARLY TOUGH REPOSSESSION BY ENLISTING THREE BURLY HELL'S ANGELS HE ADDS THAT IN OTHER INSTANCES HE VENTED HIS SPLEEN ON DELINQUENT CUSTOMERS WHO WOULDN'T COME TO THE DOOR BY SLATHERING SUPERGLUE ALL OVER THEIR DEADBOLTS AND DOORKNOBS MESSRS GERHARDT AND MYERS BOTH WERE FIRED BUT OVER UNRELATED MATTERS THE GRUELING ROUTINE GRATES ON SOME RENTACENTER EMPLOYEES MR BAKER THE FORMER MARYLAND STORE MANAGER QUIT IN DISGUST IN 1991 AFTER ONE OF HIS EMPLOYEES REPOSSESSED A REFRIGERATOR FROM A WELFARE MOTHER WITH AN INFANT PLUNKING HER MEAT AND MILK ON THE KITCHEN TABLE YET ABUSES CONTINUE ANTHONY CHAPMAN A TYSON FOODS WORKER IN GASDEN ALA SAYS THAT WHEN HE FELL BEHIND PAYING FOR A GOLD HERRINGBONE NECKLACE RENTACENTER EMPLOYEE JOHN HORTON REPEATEDLY SHOWED UP ON HIS DOORSTEP BRANDISHING TWO GUNS THE HARASSMENT CLIMAXED MR CHAPMAN MAINTAINS AFTER HE CONFESSED THAT HE HAD PAWNED THE NECKLACE MR HORTON PROMPTLY TOOK MR CHAPMAN'S COMPANYISSUE THERMAL UNIFORM AND A GOLD RING FORCED HIM INTO THE BACK OF HIS VAN AND LEFT HIM THERE DURING MR HORTON'S LEISURELY LUNCH BREAK MR CHAPMAN SAYS HE SAYS HE WAS THEN PRESENTED IN TEARS TO MR KEELING THE RENTACENTER STORE MANAGER AT THE TIME ON SEVERAL OCCASIONS AFTER THAT MR CHAPMAN SAYS MR HORTON ORDERED HIM TO RIDE IN THE BACK OF HIS VAN TO DELIVER HEAVY ITEMS TO CUSTOMERS FEELING HE HAD DONE WRONG AND DIDN'T WANT TO MAKE A FUSS MR CHAPMAN COMPLIED THE INTIMIDATION STOPPED AFTER MR CHAPMAN MANAGED TO PAY UP HE SAYS ADDING THIS WAS THE WORST THING THAT EVER HAPPENED TO ME IN MY LIFE PERIOD ONE POSTSCRIPT HIS GOLD RING HE SAYS WAS NEVER RETURNED MR HORTON WHO WAS FIRED FROM RENTACENTER IN JULY FOR UNRELATED REASONS DECLINES COMMENT MR KEELING THE FORMER STORE MANAGER CONFIRMS THE ACCOUNT AND SAYS SUCH HARROWING SCENARIOS ARE COMMONPLACE AROUND CHRISTMAS IN 1990 HE SAYS HE CARTED AWAY THE REFRIGERATOR OF A DIABETIC CUSTOMER AFTER DUMPING HER INSULIN ON THE FLOOR YET ANOTHER TACTIC IN RENTACENTER'S REPO REPERTOIRE IS THE COUCH PAYMENT SEXUAL FAVORS EXACTED BY EMPLOYEES IN LIEU OF CASH OF 28 FORMER STORE MANAGERS INTERVIEWED SIX SAID THE PRACTICE HAD OCCURRED IN THEIR AREAS SOME STORE EMPLOYEES HAVE BOASTED THAT THEY HAVE GONE OUT TO THE CUSTOMERS' HOMES HAD SEX WITH THEM AND THEN REPOED THE MERCHANDISE ANYWAY SAYS KEN DUBE WHO SPENT TIME AT A NUMBER OF OUTLETS AS A FIELD AUDITOR HE LATER BECAME AN ACCOUNTANT AT HEADQUARTERS UNTIL HE WAS FIRED IN DECEMBER FOR REASONS RENTACENTER DECLINES TO DIVULGE MR GATES ACKNOWLEDGES THAT ABUSES SUCH AS COUCH PAYMENTS OCCURRED IN THE PAST AND ARE PROBABLY GOING ON TODAY THERE ARE SIMPLY MORE CONTROL PROBLEMS IN A BUSINESS WHERE MUCH OF THE ACTIVITY TAKES PLACE OUT OF THE STORE HE SAYS BUT THE COMPANY STRESSES THAT SUCH ABUSES ARE FEW AND FAR BETWEEN AND NOT IN ANY WAY CONDONED BY RENTACENTER RENTACENTER SAYS IT IS DOING ITS BEST TO CLEAN UP REMAINING PROBLEMS IT SET UP A CUSTOMER HOT LINE THAT IN JULY RECEIVED SOME 2300 CALLS OF WHICH ONLY 300 WERE COMPLAINTS THE COMPANY SAYS IN A GIVEN MONTH 99 OF THOSE COMPLAINTS ARE RESOLVED IN THE CUSTOMER'S FAVOR ACCORDING TO COMPANY OFFICIALS SOME LATE PAYERS SAY THEY HAVE BEEN ALLOWED TO SKIP PAYMENTS RENTACENTER ALSO SOMETIMES REWRITES RENTAL AGREEMENTS STRETCHING OUT THE PAYMENT TERM TO STAVE OFF A REPOSSESSION BUT RENTACENTER EMPLOYEES ARE SOMETIMES WILLING TO TAKE THE RISK OF GETTING CAUGHT SINCE THE STAKES ARE SO HIGH IN MAY AT THE ANNUAL MEETING HELD AT BALLY'S IN LAS VEGAS SCORES OF MANAGERS CLAMBERED ON STAGE TO COLLECT BONUS CHECKS AT A FESTIVE FINAL GALA AS THE CHAMPAGNE FLOWED THE STORE MANAGER OF THE YEAR WAS AWARDED A YEAR'S USE OF A NEW RED CORVETTE A TRIP TO THE RITZ CARLTON IN MAUI AND A BONUS OF 24200 RENTACENTER ESTIMATES THAT THE AVERAGE STORE MANAGER CURRENTLY EARNS A SALARY OF 30000 AND MORE THAN 80 RECEIVED BONUSES LAST YEAR AS FOR RENTACENTER'S FUTURE CHANCES ARE IT WON'T BE QUITE SO FREEWHEELING ASIDE FROM THE LAWSUITS AND THE BILL IN THE HOUSE THE SENATE IS DRAFTING LEGISLATION THE INTERNAL REVENUE SERVICE IS ALSO EXAMINING THE RENTTOOWN INDUSTRY AND PENNSYLVANIA'S ATTORNEY GENERAL HAS CONCLUDED THAT RENTACENTER IS VIOLATING A STATE LAW CAPPING ANNUAL INTEREST RATES AT 18 IT IS ASKING THE FIRM TO GIVE REFUNDS THE STATE ALSO IS EXAMINING REPORTS THAT RENTACENTER ENGAGES IN ILLEGAL COLLECTION PRACTICES INCLUDING THREATENING TO BREAK INTO LATE PAYERS' HOMES DESPITE THE PROLIFERATING CHALLENGES MR GATES REMAINS OPTIMISTIC HE IS HARD AT WORK ON HIS LATEST PET PROJECT RENTACENTER 2000 THIS STORE OF THE FUTURE BEING TESTED IN KANSAS CITY KAN FEATURES A PLAY AREA FOR CHILDREN A WALL OF FAME WITH PHOTOS OF STAR CUSTOMERS AND A TROUBLED TIMES PROGRAM THAT ENABLES RENTERS TO SKIP OR DEFER PAYMENTS TEMPORARILY RENTACENTER IS ALSO BRANCHING OUT INTO NEW RENTAL AREAS ONE OF ITS MOST SUCCESSFUL HAS BEEN JEWELRY RENTACENTER IS NOW AMONG THE LARGEST CUSTOMERS OF HARRY WINSTON INC THE FAMED JEWELER TO SUCH CLIENTS AS IMELDA MARCOS AND THE LATE DUCHESS OF WINDSOR WHICH SUPPLIES LOWEREND BAUBLES TO THE CHAIN NOWHERE ELSE TO GO IN ITS NEW VENTURES RENTACENTER WILL SURELY BE ABLE TO COUNT ON ITS CURRENT CUSTOMERS A LOYAL LOT MOST FEEL THEY CAN'T GET QUALITY GOODS ANY OTHER WAY NANCY THORNLEY AN OGDEN UTAH HOUSEWIFE FOR EXAMPLE WAS DILIGENTLY HANDING OVER ABOUT 261 A MONTH IN RENTAL PAYMENTS TO RENTACENTER IN 1991 WHEN SHE LOST A LEG TO DIABETES FACED WITH A 1000 BILL FOR A PROSTHETIC LIMB SHE ARRANGED TO DEFER PART OF HER RENTAL TAB SHE SAYS BUT SHORTLY AFTER SHE RETURNED HOME FROM THE HOSPITAL SHE WAS SHOCKED WHEN TWO STORE EMPLOYEES SHOWED UP WITHOUT NOTICE ON A SATURDAY AFTERNOON ACCUSED HER OF BEING THREE MONTHS BEHIND IN PAYMENTS AND CARTED AWAY ALL THE GOODS PRIMARILY BASICS SUCH AS A REFRIGERATOR AND A COUCH IT WAS A TOTAL HUMILIATION SHE SAYS ALL MY NEIGHBORS WERE WATCHING A YEAR LATER THOUGH MS THORNLEY WAS BACK HAVING BEEN INUNDATED BY RENTACENTER LETTERS AND WE WANT YOU BACK COUPONS SHE WAS RELUCTANT TO RETURN SHE SAYS BUT I NEEDED THE ITEM A MICROWAVE OVEN AND COULDN'T AFFORD TO BUY IT SAYS MS THORNLEY I FELT LIKE THERE WAS NOWHERE ELSE TO GO THORN EMI PLC'S RENTACENTER CHAIN ACHIEVES STORE PROFIT MARGINS OF 20 TO 30 COMPARED WITH CONVENTIONAL RETAILERS' STORE MARGINS THAT MANAGEMENT HORIZONS INC ESTIMATES AT 75 A SEPT 22 PAGEONE ARTICLE INCORRECTLY SET CONVENTIONAL RETAILERS' STORE PROFIT MARGINS AT 25 THE ARTICLE QUOTED A FORMER STORE MANAGER AS SAYING THAT RENTACENTER ULTIMATELY COLLECTED MORE THAN 5000 ON A VCR THAT RETAILED FOR 119 RENTACENTER SAYS THAT IT NEVER PURCHASED A VCR THAT RETAILED FOR THAT LOW A PRICE AND THE MANUFACTURER IS UNABLE TO PROVIDE SUGGESTED RETAIL PRICES FOR 1984 OR 1985 WHEN THE RENTAL PERIOD COMMENCED IN 1990 THAT MODEL OF VCR HAD A SUGGESTED RETAIL PRICE OF 249 RENTACENTER ALSO DENIES THAT IT COULD HAVE RECEIVED 5000 FROM CUSTOMERS FOR A SINGLE VCR THE FORMER STORE MANAGER STANDS BY HIS ACCOUNT THE ARTICLE SAID THAT AN EMPLOYEE TRAINING MANUAL DOESN'T INSTRUCT EMPLOYEES TO QUOTE THE TOTAL COST OF A RENTAL ITEM THE MANUAL SAYS THAT THE LAST STEP IN CLOSING THE AGREEMENT IS TO HANDLE ALL THE FINISHING DETAILS WHICH INCLUDE TELLING THE CUSTOMER WHAT THE GRAND TOTAL PAYMENT WILL BE FOR ALL HIS/HER AGREEMENTS THE ARTICLE SAID THAT IF RENTACENTER EMPLOYEES FAIL TO MEET SALES TARGETS THEY ARE FIRED WITH EXTRAORDINARY SPEED THE ARTICLE DIDN'T MEAN TO SUGGEST THAT EVERY EMPLOYEE WHO FAILS TO MEET PLAN IS FIRED 9310040056 930928 WHO'S NEWS SYNTEX CORP SYNTEX CORP PALO ALTO CALIF ROBERT STEVENS MILLER JR 51 YEARS OLD AN INVESTMENT BANKER WITH JAMES D WOLFENSOHN INC WAS ELECTED TO THE BOARD OF THIS HEALTHCARE PRODUCTS COMPANY HE SUCCEEDS JEROME FARMER WHO DIED SYNTEX CORP BOARD MEMBER ROBERT STEVENS MILLER JR IS VICE PRESIDENT AND TREASURER OF MOORE MILL & LUMBER CO IN AN ITEM IN TUESDAY'S WHO'S NEWS COLUMN MR MILLER WAS INCORRECTLY IDENTIFIED AS STILL WORKING FOR HIS FORMER EMPLOYER JAMES D WOLFENSOHN INC 9310010207 931001 WHO'S NEWS AMP INC AMP INC HARRISBURG PA THIS MAKER OF ELECTRICAL AND ELECTRONIC CONNECTION DEVICES ELECTED BARBARA HACKMAN FRANKLIN A DIRECTOR INCREASING THE BOARD TO 13 MEMBERS MS FRANKLIN 53 YEARS OLD IS THE FORMER SECRETARY OF COMMERCE UNDER THE BUSH ADMINISTRATION 9310010206 931001 AND A WORLD OF OPPORTUNITY BECKONS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD IS FULL OF BRIGHT SPOTS FOR STOCKMARKET INVESTORS IN THIS QUARTER CUTS IN INTEREST RATES THIS WINTER WILL BOOST EUROPEAN STOCK MARKETS CONTINUED STRONG ECONOMIC GROWTH WILL PROPEL ASIAN EQUITIES AND STRUCTURAL CHANGES IN THE MEXICAN ECONOMY OFFER HOPES OF GAINS IN ITS SHARE PRICES ANALYSTS SAY JOHN REYNOLDS DIRECTOR OF GLOBAL STRATEGY AT NAON EXPECTS POSITIVE NEWS ON INFLATION TO ALLOW INTEREST RATES IN EUROPE TO DROP IN LATE OCTOBER AND INTO NOVEMBER WE'LL BE BACK ON THE INTERESTRATECUTTING PATH ACROSS EUROPE HE SAYS THAT WILL TRIGGER A FRESH PUSH TO NEW HIGHS IN THE STOCK MARKETS MR REYNOLDS SEES SIMILARITIES BETWEEN CONDITIONS IN EUROPE NOW AND THE STATE OF THE US ECONOMY AND STOCK MARKET IN MID1991 THAT WAS A TIME WHEN THE US ECONOMY WAS BOTTOMING AND CUTS IN SHORTTERM RATES WERE AROUND THE CORNER JUST AS US STOCKS STEAMED AHEAD EUROPEAN MARKETS ARE POISED FOR A PARALLEL EXPERIENCE MR REYNOLDS CONTENDS ALTHOUGH EUROPEAN STOCKS HAVE CLIMBED CONSIDERABLY MR REYNOLDS BELIEVES A FLOOD OF FUNDS INTO THE MARKET AS A RESULT OF FALLING RATES WILL KEEP PRICES ALOFT I'M LOOKING FOR A LIQUIDITYDRIVEN PHASE FOR EUROPEAN STOCKS HE SAYS A POTENTIAL RISK IS THE POLITICAL INSTABILITY IN RUSSIA MR REYNOLDS SAYS HE BELIEVES PRESIDENT BORIS YELTSIN HAS ENOUGH SUPPORT TO SURVIVE TO THE DECEMBER ELECTIONS BUT FEARS THERE'S A SLIGHT CHANCE OF CIVIL WAR IF THAT HAPPENS RUSSIA'S OIL AND GAS EXPORTS COULD BE DISRUPTED PUSHING UP THOSE COMMODITIES' PRICES THEN WE HAVE THE INGREDIENTS FOR A SETBACK IN INFLATION FOR EUROPE WHICH WOULD UPSET THE BOND MARKET AND HURT STOCKS MR REYNOLDS SAYS FOR US INVESTORS THERE'S SOME RISK OF A POTENTIAL RISE IN THE DOLLAR MR REYNOLDS SAYS FALLING INTEREST RATES IN EUROPE AND STRONGER ECONOMIC GROWTH IN THE US COULD DRIVE UP ITS VALUE AMONG INDIVIDUAL MARKETS MR REYNOLDS LIKES FRANCE WHERE HE SEES THREEMONTH INTEREST RATES SLIDING ANOTHER THREE PERCENTAGE POINTS TO ABOUT 4 HE EXPECTS LONGTERM RATES TO DECLINE TO AROUND 55 TO 575 FROM CURRENT LEVEL OF ABOUT 6 IT'S REALLY NECESSARY TO TURN THE YIELD CURVE POSITIVE TO POINT THE ECONOMY TOWARD RECOVERY IN THE SECOND HALF OF NEXT YEAR MR REYNOLDS SAYS SPAIN AND ITALY ALSO STAND TO BENEFIT FROM FALLING RATES HE PREDICTS WITH INFLATION COMING DOWN THERE COULD BE QUITE A SUBSTANTIAL RUN IN BOTH THOSE BOND AND STOCK MARKETS OVER THE NEXT SIX TO 12 MONTHS MR REYNOLDS SAYS RICHARD FOULKES CHIEF INVESTMENT OFFICER AT SCHRODER CAPITAL MANAGEMENT INTERNATIONAL IN LONDON ALSO BELIEVES IN THE FALLINGINTERESTRATE SCENARIO FOR EUROPE BUT HE SAYS HE WOULD SHY AWAY FROM SPAIN BECAUSE OF ITS MYRIAD PROBLEMS INCLUDING A WEAK MINORITY GOVERNMENT STRONG WAGE INFLATION EVEN WITH HIGH UNEMPLOYMENT A BIG BUDGET DEFICIT AND AN ECONOMIC RECESSION MR FOULKES ALSO IS WARY OF THE GERMAN STOCK MARKET BECAUSE OF ITS HIGH PRICES AND THE COUNTRY'S POOR ECONOMIC OUTLOOK IF YOU WANT TO PLAY INTEREST RATES YOU DON'T HAVE TO PLAY THEM IN GERMANY HE SAYS I WOULD HAPPILY PLAY FALLING RATES IN THE NETHERLANDS ITALY AND FRANCE THE BEST SHORTTERM POTENTIAL MAY BE FOUND IN THE UNITED KINGDOM MR FOULKES PREDICTS HE BELIEVES THE BRITISH ECONOMY IS STRENGTHENING FASTER THAN ANY OTHER IN EUROPE THERE'S REASON TO PRESUME THAT CORPORATE PROFITS WILL GROW QUITE NICELY MR FOULKES SAYS THE UK MARKET HAS UNJUSTIFIABLY LAGGED AND HAS THE POTENTIAL FOR THE MOST CATCHUP IN ASIA STOCK MARKETS ARE LIKELY TO CONTINUE BENEFITING FROM SOME OF THE STRONGEST ECONOMIC GROWTH IN THE WORLD AROUND 5 TO 6 MR FOULKES LIKES HONG KONG THAILAND AND SOUTH KOREA ALL THESE STOCK MARKETS HAVE BEEN LAGGING HE SAYS THEY REPRESENT REALLY GOOD FUNDAMENTAL VALUE KOREA IN PARTICULAR HAS BRIGHT PROSPECTS BECAUSE ITS ECONOMY APPEARS TO BE ON THE EDGE OF AN UPWARD TURN AND THE STOCK MARKET HAS JUST ABOUT HIT BOTTOM MR FOULKES BELIEVES IN JAPAN HE URGES INVESTORS TO BE HIGHLY SELECTIVE AVOIDING BANKS BUT SEEKING OUT STOCKS THAT BENEFIT FROM DOMESTIC CONSUMPTION MR FOULKES ARGUES THAT THE JAPANESE GOVERNMENT'S EFFORTS TO STIMULATE THE ECONOMY AND SPUR CONSUMER SPENDING OUGHT TO BOOST RETAILERS AND HOUSE BUILDERS I'M HAPPY TO BUY COMPANIES THAT BENEFIT FROM THAT SCENARIO HE SAYS JOHN R HICKLING PORTFOLIO MANAGER OF FIDELITY'S OVERSEAS FUND AND INTERNATIONAL GROWTH AND INCOME FUND THINKS STOCK MARKETS AROUND THE WORLD ARE IN A PROCESS OF CORRECTION AND HOPES TO BE ABLE TO GRAB UP STOCKS AT LOWER PRICES LATER IN THE YEAR IN MOST PLACES I'M HOPING FOR A CORRECTION AND SOME WEAKNESS WITH WHICH TO BUILD SOME POSITIONS FOR NEXT YEAR MR HICKLING SAYS HE LIKES THE POTENTIAL OF SOME ECONOMICALLY SENSITIVE STOCKS IN THE UK ESPECIALLY THOSE COMPANIES THAT HAVE UNDERTAKEN RESTRUCTURING MEASURES SUCH AS BRITISH STEEL PLC AND BRITISH PETROLEUM CO WHILE FALLING INTEREST RATES SHOULD HELP THE MARKET HE RECOMMENDS THAT INVESTORS ALSO BE MINDFUL OF THE BENEFITS OF THE LONGTERM ECONOMIC RECOVERY ON THE HORIZON IN EUROPE IT'S NICE TO HAVE THE WIND AT YOUR BACK BUT YOU CAN'T JUST LOOK AT INTEREST RATES MR HICKLING SAYS MEXICAN STOCKS LOOK ATTRACTIVE LONGTERM BUT OFFER SOME RISK IN THE NEARTERM MR HICKLING SAYS STRUCTURAL CHANGES IN THE ECONOMY WILL BOOST SHARE PRICES DOWN THE ROAD BUT THEY ARE A LITTLE HIGH RIGHT NOW HE BELIEVES THE MARKET ALSO IS SUSCEPTIBLE TO DOWNDRAFTS DURING THE DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT BUT ANY DECLINES PROVIDE BUYING OPPORTUNITIES A LOT OF THE GOOD NEWS IS ALREADY IN THE PRICES MR HICKLING SAYS BUT I'VE ADDED A LITTLE MORE TO MEXICO ON THE NAFTA JITTERS SEE RELATED ARTICLE STOCKPICKERS OFFER WAYS TO PIERCE GLOOM WSJ OCT 1 1993 9310010205 931001 WHO'S NEWS MORRISON RESTAURANTS INC MORRISON RESTAURANTS INC MOBILE ALA BENJAMIN F PAYTON PRESIDENT OF TUSKEGEE UNIVERSITY WAS ELECTED TO THE BOARD OF THIS RESTAURANT COMPANY MR PAYTON 60 YEARS OLD SUCCEEDS MANNING MCPHILLIPS 70 WHO RETIRED FROM THE BOARD 9310010204 931001 J&L SPECIALTY EXPANSION PITTSBURGH J&L SPECIALTY PRODUCTS CORP SAID IT APPROVED A FIVEYEAR CAPITAL PROGRAM EARMARKING 175 MILLION TO 225 MILLION FOR EXPANDING ITS STAINLESS STEEL PRODUCTION FACILITIES THE COMPANY IS A UNIT OF SPECIALTY MATERIALS CORP WHICH IN TURN IS OWNED BY USINOR SACILOR A FRENCH STEELMAKER 9310010203 931001 CANADA PLANS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 12 BILLION CANADIAN DOLLARS US903 MILLION OF 8 BONDS DUE JUNE 1 2023 THE PROCEEDS WILL BE USED TO REDEEM SOME OF C213 BILLION OF MATURING BONDS 9310010202 931001 CANADIAN STEEL PRODUCTION OFF OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 270209 METRIC TONS IN THE WEEK ENDED SATURDAY A 07 DECLINE FROM 272001 TONS THE PREVIOUS WEEK AND A 42 DROP FROM 282184 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 10567964 TONS A 53 INCREASE FROM 10040810 A YEAR EARLIER 9310010201 931001 ASHLAND UNIT PLANS ACQUISITION LEXINGTON KY VALVOLINE INTERNATIONAL INC A UNIT OF ASHLAND OIL INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE DISTRIBUTORSHIPS AND RELATED BUSINESSES OF FUCHS PETROLUB AG OF GERMANY TERMS WEREN'T DISCLOSED 9310010200 931001 WHO'S NEWS RENTWAY INC RENTWAY INC ERIE PA ROBERT FAGENSON 44 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OPERATOR OF RENTTOOWN STORES MR FAGENSON IS PRESIDENT OF FAGENSON & CO A NEW YORK STOCK EXCHANGE SPECIALIST FIRM HIS APPOINTMENT INCREASES THE BOARD'S SIZE TO FOUR MEMBERS 9310010199 931001 WITCO IS ADDED TO INDEX NEW YORK WITCO CORP IS BEING ADDED TO THE COMMODITY CHEMICALS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX REPLACING QUANTUM CHEMICAL CORP EFFECTIVE TODAY QUANTUM CHEMICAL IS BEING ACQUIRED BY HANSON PLC 9310010198 931001 EC URGES CURB ON ALUMINUM FROM RUSSIA INDUSTRY GROUP SAYS GLUT IS THREATENING TO SPUR PLANT CLOSINGS JOB CUTS BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS WESTERN EUROPE'S ALUMINUM INDUSTRY IS PRESSING FOR PROTECTION FROM RUSSIAN IMPORTS TO LIMIT THE DAMAGE FROM A WORLDWIDE ALUMINUM GLUT ALUMINUM PRODUCERS IN WESTERN EUROPE HAVE CUT 25 OF THEIR SMELTING CAPACITY OVER 2 1/2 YEARS AND AS MANY AS 10000 JOBS HAVE BEEN LOST THIS YEAR INDUSTRY OFFICIALS SAID AT THE EUROPEAN ALUMINIUM ASSOCIATION'S ANNUAL CONFERENCE MORE CLOSURES AND JOB CUTS ARE AHEAD IF THE FLOOD OF CUTPRICED IMPORTS FROM THE FORMER SOVIET UNION ISN'T STOPPED THEY WARNED THE CAUSE OF THE PROBLEM IS THE RUSSIANS SAID EAA PRESIDENT DICK DERMER WE NEED A TRANSITION PERIOD THERE IS NO NEED FOR THE RUSSIAN PRODUCT EXPORTS OF ALUMINUM INGOT FROM THE COMMONWEALTH OF INDEPENDENT STATES INTO WESTERN EUROPE MORE THAN QUADRUPLED BETWEEN 1990 AND 1992 TO MORE THAN ONE MILLION TONS A YEAR EAA CHAIRMAN DAG FLAA SAID THE COLLAPSE OF THE SOVIET UNION AND ITS ALUMINUMHUNGRY WEAPONS INDUSTRY HAS PROMPTED CIS PRODUCERS TO FOCUS ON THE WORLD MARKET MR FLAA HEAD OF THE ALUMINUM UNIT OF NORWAY'S NORSK HYDRO AS SAID HE EXPECTS A RECORD 14 MILLION TONS OF CIS EXPORTS TO WESTERN EUROPE THE US AND JAPAN IN 1993 WESTERN EUROPE'S INDUSTRY HAS BEEN THE FIRST HIT BY THE INFLOW OF CHEAP RUSSIAN METAL BUT THE EUROPEAN COMMUNITY'S AUGUST DECISION TO LIMIT IMPORTS APPEARS TO HAVE REDIRECTED SOME CIS SHIPMENTS TO THE US EUROPEAN INDUSTRY OFFICIALS EXPRESSED HOPE DURING THIS WEEK'S CONFERENCE THAT THIS MIGHT HELP PERSUADE A RELUCTANT US ADMINISTRATION TO JOIN IN PRESSURING RUSSIA TO CURB ITS EXPORTS IT'S VERY IMPORTANT THAT WE FIND AN INTERNATIONAL SOLUTION EC QUOTAS WON'T SOLVE THE INTERNATIONAL PROBLEM SAID KARL WOBBE MANAGING DIRECTOR OF GERMANY'S VAW ALUMINIUM AG HE CALLED FOR A WORLDWIDE AGREEMENT AMONG ALUMINUM PRODUCERS INCLUDING THE CIS TO CUT GLOBAL PRODUCTION CAPACITY BY ONE MILLION TONS OR MORE IN RETURN HE SAID EUROPEAN INDUSTRY CAN HELP RUSSIA MODERNIZE AND CLEAN UP ITS HEAVILY POLLUTING SMELTERS BUT CHANCES FOR SUCH A FARREACHING ACCORD APPEAR REMOTE NOT THE LEAST BECAUSE OF POLITICAL CHAOS IN RUSSIA MANY PARTICIPANTS AT THE MEETING SAID MR FLAA AMONG OTHERS CALLED FOR MORE RADICAL MEASURES HE SAID WESTERN EUROPE'S ALUMINUM INDUSTRY MUST BE SHELTERED FROM RUSSIAN IMPORTS FOR ABOUT 10 YEARS TO GIVE IT TIME TO RESTRUCTURE IN AN ORDERLY WAY IN AUGUST THE EC IMPOSED A PROVISIONAL QUOTA OF 60000 TONS ON CIS ALUMINUM IMPORTS COVERING THE FOUR LAST MONTHS OF 1993 WHILE EAA OFFICIALS WELCOMED THE EC QUOTA THEY ACKNOWLEDGED THAT SUCH ACTIONS AREN'T OF MUCH HELP AS ALUMINUM IS TRADED IN A GLOBAL OPEN MARKET AN EC IMPORT QUOTA CAN DO LITTLE TO BOLSTER PRICES ALUMINUM PRICES IN EUROPE HAVE CONTINUED TO SLIP AFTER THE QUOTA WAS ANNOUNCED STOCKPILES MEANWHILE HAVE CONTINUED TO GROW TO AN ESTIMATED EIGHT MILLION TONS WORLDWIDE OR MORE THAN HALF THE ANNUAL WESTERN ALUMINUM CONSUMPTION OF AROUND 155 MILLION TONS ALUMINUM PRICES HAVE FALLEN BY ALMOST 50 OVER THE PAST FIVE YEARS TO ABOUT 1150 PER TON BUT RUSSIAN PRODUCERS ARE CAPABLE OF UNDERCUTTING IT BY 25 INDUSTRY OFFICIALS SAID IF PRICES FALL MUCH FURTHER EUROPEAN PRODUCERS WILL HAVE LITTLE CHOICE BUT TO CLOSE THEIR SMELTERS THEY ADDED IN 1992 CONSUMPTION OF PRIMARY ALUMINUM IN WESTERN EUROPE ROSE 25 FROM A YEAR EARLIER TO 48 MILLION TONS WHILE PRODUCTION FELL 37 TO 34 MILLION TONS THE EAA SAID FOR 1993 THE ASSOCIATION FORECAST A 45 DROP IN WESTERN EUROPE'S CONSUMPTION AND A 33 DROP IN OUTPUT BUT IT ADDED THAT THE WEAKNESS IN DEMAND WOULD BE MORE THAN COMPENSATED BY GROWING CONSUMPTION WORLDWIDE PARTICULARLY IN THE US 9310010197 931001 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 CARLTON COMMUNICATIONS PLC 150 MILLION OF EXCHANGEABLE CAPITAL SECURITIES PRICED AT PAR FOR AN 8 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE COMPANY SOLD SIX MILLION SHARES AT 25 EACH THE SECURITIES NONCALLABLE FOR FIVE YEARS ARE EXCHANGEABLE AT THE COMPANY'S OPTION INTO CUMULATIVE PREFERRED STOCK WITH A 9 DIVIDEND YIELD RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MERRILL LYNCH & CO 150 MILLION OF NOTES DUE OCT 15 2008 PRICED AS 625S AT 98937 TO YIELD 6361 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MORGAN STANLEY GROUP INC 325 MILLION OF DEBT IN TWO TRANCHES THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO THE FIRST TRANCHE 150 MILLION OF NONCALLABLE NOTES DUE OCT 1 2003 WAS PRICED AS 6125S AT 99932 TO YIELD 6134 THE NOTES WERE PRICED AT A SPREAD OF 78 BASIS POINTS OVER TREASURYS THE SECOND TRANCHE 175 MILLION OF NONCALLABLE DEBENTURES DUE OCT 1 2013 WAS PRICED AS 7S AT 99403 TO YIELD 7056 THE NOTES WERE PRICED AT A SPREAD OF 88 BASIS POINTS OVER TREASURYS BOTH TRANCHES ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P NOBLE DRILLING CORP 125 MILLION OF SENIOR NOTES DUE OCT 1 2003 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AUTOZONE INC 55 MILLION COMMON SHARES PRICED AT 49 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GLENAYRE TECHNOLOGIES INC 18 MILLION COMMON SHARES PRICED AT 8850 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP NOBLE DRILLING CORP 105 MILLION COMMON SHARES PRICED AT 838 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC OILTEC RESOURCES LTD INITIAL PUBLIC OFFERING OF THREE MILLION COMMON SHARES PRICED AT ONE CANADIAN DOLLAR US 76 CENTS EACH THROUGH PETERS & CO AND FIRST MARATHON SECURITIES LTD ACCORDING TO THE COMPANY GLOBAL HIGH INCOME FUND INC INITIAL OFFERING OF 20 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC FEDERAL HOME LOAN MORTGAGE CORP 501 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1618 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1620 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE INVESTMENTCONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1619 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY SHEARSON INC THE OFFERING SERIES 1621 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 3001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993215 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS BANCO DE COLOMBIA COLOMBIA 50 MILLION OF 75 EUROBONDS DUE OCT 21 1998 AT ISSUE AND FIXED REOFFER PRICE 99 VIA CITIBANK INTERNATIONAL PLC AND SWISS BANK CORP AT FIXED REOFFER PRICE BONDS YIELD 7745 SEMIANNUALLY A SPREAD OF 300 BASIS POINTS OVER 475 TREASURY DUE 1998 FEES ONE INTEREST PAID SEMIANNUALLY CS FIRST BOSTON GROUP INC SWISS PARENT 200 MILLION OF COLLARED FLOATINGRATE NOTES DUE OCT 27 2005 PRICED AND REOFFERED TO INVESTORS AT PAR VIA LEAD UNDERWRITER CREDIT SUISSE FIRST BOSTON NOTES BEAR COUPON OF SIXMONTH LONDON INTERBANK OFFERED RATE LESS 25 BASIS POINTS WITH MINIMUM 525 AND MAXIMUM 875 FEES 05 DENMARK SOVEREIGN 250 MILLION CANADIAN DOLLARS OF 65 SENIOR UNSECURED EURONOTES MATURING OCT 29 1999 AT ISSUE PRICE 10025 REOFFERED AT 9865 VIA DAIWA EUROPE PRICED TO YIELD 32 BASIS POINTS OVER 65 CANADIAN GOVERNMENT NOTE OF 1998 FEES 1875 EUROPEAN SOVEREIGN INVESTMENTS SA LUXEMBOURG 10 BILLION YEN OF 33 EUROBONDS DUE SEPT 2 1996 AT ISSUE PRICE 101 VIA SUMITOMO TRUST LTD AT COMANAGERS' BREAKEVEN PRICE 99875 BONDS YIELD 3344 ISSUE SECURED ON BONDS ISSUED BY TRIPLEARATED MEMBER STATE OF EUROPEAN COMMUNITY THERE IS A SHORT FIRST COUPON AND A LONG SECOND COUPON FEES 1125 PETROLEOS MEXICANOS MEXICO 75 MILLION OF UNSECURED UNSUBORDINATED 9 EUROBONDS DUE OCT 27 2003 AT ISSUE AND FIXED REOFFER PRICE 99712 VIA BARCLAYS DE ZOETE WEDD AT REOFFER PRICE BONDS YIELD 9045 A SPREAD OF 200 BASIS POINTS OVER COMPARABLE GILT FEES ONE SKOPBANK FINLAND 50 MILLION OF UNSECURED UNSURBORDINATED FLOATINGRATE EURONOTES DUE OCTOBER 1996 AT ISSUE AND FIXED REOFFER PRICE 9995 VIA SAKURA FINANCE INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AT 45 BASIS POINTS OVER SIXMONTH LIBOR FEES 015 9310010195 931001 USA WASTE SERVICES ACQUISITION DALLAS USA WASTE SERVICES INC SAID IT ACQUIRED A LANDFILL AND ASSOCIATED BUSINESS IN WHITE COUNTY IND FROM CHAMBERS DEVELOPMENT CO DONALD F MOOREHEAD JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE WASTE SERVICES PROVIDER PAID 15 MILLION IN CASH AND 4 MILLION IN PROMISSORY NOTES FOR OPERATIONS THAT GENERATE ABOUT 8 MILLION A YEAR IN REVENUE 9310010194 931001 HOUSE STRIPS PENTAGON BUDGET OF FUNDS FOR FUTURE PEACEKEEPING OPERATIONS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE REFLECTING CONTINUED TENSION OVER US PEACEKEEPING MISSIONS ABROAD STRIPPED THE PENTAGON BUDGET OF MONEY FOR A SPECIAL GLOBAL ACCOUNT TO FUND SUCH OPERATIONS IN THE FUTURE THE CLINTON ADMINISTRATION HAD REQUESTED AS MUCH AS 448 MILLION FOR THE INITIATIVE IN THE FISCAL YEAR THAT BEGINS TODAY BUT THE ADMINISTRATION IS NOW FACED WITH A LEGISLATIVE STANDOFF WHERE NEITHER THE HOUSE NOR SENATE VERSIONS OF THE MILITARY BUDGET INCLUDE ANY FUNDS AT ALL YESTERDAY'S SKIRMISHING WAS SET OFF BY A DISPUTE OVER WHAT RULES WOULD GOVERN THE SHARED POWER BETWEEN LAWMAKERS AND THE EXECUTIVE BRANCH OVER ACCESS TO THE FUNDS ONCE THEY WERE APPROVED BY CONGRESS THE HOUSE APPROPRIATIONS COMMITTEE HAD ALLOCATED 383 MILLION FOR THE NEW GLOBAL ACCOUNT BUT WHEN ACCOMPANYING RESTRICTIONS WERE KILLED ON A PROCEDURAL MOTION THE PANEL'S LEADERSHIP MOVED QUICKLY TO STRIP OUT ALL THE MONEY THE ACTION CAME AS SENATE PROPONENTS OF THE ENERGY DEPARTMENT'S MASSIVE SUPERCONDUCTING SUPER COLLIDER WON A 5742 VOTE SUPPORTING AT LEAST REDUCED FUNDING OF 640 MILLION FOR THE PROJECT THE MARGIN SHOWS A SIGNIFICANT DECLINE OF SUPPORT FOR THE GIANT ATOMSMASHER FROM LAST YEAR BUT STILL REPRESENTS A BITTER BLOW TO A COALITION OF ENVIRONMENTALISTS AND FISCAL CONSERVATIVES WHO HAVE TWICE WON VOTES TO KILL THE PROJECT IN THE HOUSE THE MOST RECENT CASE WAS A LOPSIDED 280150 HOUSE ROLL CALL IN JUNE AND THE WHOLE MOOD IN THE SENATE IS STARKLY DIFFERENT FROM THE BUDGETCUTTING FRENZY ACROSS THE CAPITOL ONLY MONTHS AGO THE CHIEF EXCEPTION WAS A VICTORY LAST NIGHT BY SEN BILL BRADLEY D NJ WHO SUCCESSFULLY CUT 22 MILLION FOR A GAS TURBINE REACTOR PROGRAM THAT THE ADMINISTRATION ITSELF HAD OPPOSED BUT HOURS BEFORE IN A FIGHT MIRRORING THAT OF THE SUPERCOLLIDER THE SENATE UPHELD FUNDING FOR THE COSTLY ADVANCED LIQUID METAL REACTOR WHICH HAD BEEN OVERWHELMINGLY REJECTED BY THE HOUSE THIS SUMMER MY DOG HAS A LONGER MEMORY THAN THE SENATE COMPLAINED SEN DALE BUMPERS D ARK A LEADING CRITIC OF THE TEXASBASED COLLIDER AND IN THE INTERVENING MONTHS SENATE ENERGY COMMITTEE CHAIRMAN BENNETT JOHNSTON A MASTER OF PORKBARREL POLITICS AND SENIOR MEMBER OF THE APPROPRIATIONS PANEL HAS DELIBERATELY KEPT HIS BILL FROM THE FLOOR TO GATHER STRENGTH AND ALLOW LOBBYING BY TEXAS GOV ANN RICHARDS AMONG DEMOCRATS BY DOING SO THE LOUISIANA DEMOCRAT HELPED CONTAIN HIS LOSSES TO ABOUT EIGHT TO 10 VOTES OVER A YEAR AGO HE NOW GOES INTO CONFERENCE WITH THE HOUSE RELYING ON HIS PERSONAL CLOUT AND HELP FROM THE ADMINISTRATION TO PRESERVE HIS VICTORY GIVEN THE FISCAL PRESSURES THIS YEAR APPROPRIATORS ON BOTH SIDES OF THE CAPITOL HAVE SHOWN MORE RESTRAINT IN EARMARKING FUNDS FOR PAROCHIAL PROJECTS AT HOME BUT THE VERY RICHNESS OF THE PENTAGON BUDGET OFFERS NEW AVENUES AS SEEN IN THE BURGEONING GROWTH OF DEFENSECONVERSION MONEY IN THE NEARLY 2395 BILLION BILL APPROVED BY THE HOUSE YESTERDAY THE MEASURE ALLOCATES AT LEAST 324 BILLION FOR THIS PURPOSE OR ALMOST 900 MILLION MORE THAN THE PENTAGON REQUESTED AN ACCOMPANYING LEGISLATIVE REPORT WOULD DISTRIBUTE AS MUCH AS 475 MILLION OF THIS AMONG SCORES OF PROJECTS FOR INFLUENTIAL MEMBERS THE AGGRESSIVE TACTICS REFLECT THE TEMPERAMENT OF REP JOHN MURTHA D PA CHAIRMAN OF THE HOUSE DEFENSE SUBCOMMITTEE BUT THE FINAL PRODUCT IS VIEWED WITH ALARM BY CRITICS WHO FEAR THE CONVERSION PROGRAM WILL BECOME DISTORTED AS A RESULT THE HOUSE ALSO GAVE FINAL APPROVAL TO AN ESTIMATED 71 BILLION AGRICULTURE BUDGET THAT WOULD END WOOL AND MOHAIR SUBSIDIES AFTER THE CURRENT YEAR THE MEASURE MUST STILL CLEAR THE SENATE BUT THE FINAL COMPROMISE IS EXPECTED TO BE AGREED TO QUICKLY AND SENT TO THE WHITE HOUSE 9310010193 931001 WHO'S NEWS CHARLES SCHWAB CORP CHARLES SCHWAB CORP SAN FRANCISCO JOHN TOGNINO 55 YEARS OLD WAS APPOINTED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF TRADING AND CAPITAL MARKETS AT THIS DISCOUNT BROKERAGE MR TOGNINO PREVIOUSLY A MANAGING DIRECTOR AT MERRILL LYNCH & CO ALSO WAS NAMED A MEMBER OF THE MANAGEMENT COMMITTEE 9310010192 931001 WHO'S NEWS KLEERVU INDUSTRIES INC KLEERVU INDUSTRIES INC HOUSTON HP PARK 45 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS PHOTO ALBUM AND STATIONERY MAKER MR PARK WHO WAS NAMED COCHAIRMAN AND PRESIDENT LAST MAY AFTER KLEERVU ACQUIRED HIS CLOSELY HELD PAS INDUSTRIES INC OF COMPTON CALIF SUCCEEDS DANIEL DROR 52 WHO SAID HE RESIGNED AFTER 11 YEARS AT THE COMPANY TO PURSUE OTHER INTERESTS MR DROR SAID HIS DEPARTURE WAS AMICABLE BUT DECLINED TO ELABORATE HE SAID HE WILL REMAIN A CONSULTANT TO KLEERVU 9310010191 931001 WHO'S NEWS NETWORTH INC NETWORTH INC DALLAS PAUL ZITO 38 YEARS OLD WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS COMPUTER NETWORKING COMPANY MR ZITO SUCCEEDS MARK A FLOYD 37 WHO HAS BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF A DALLASBASED TECHNOLOGY STARTUP COMPANY MR ZITO WAS A PARTNER WITH KPMG PEAT MARWICK IN DALLAS WHERE HE WORKED FOR 16 YEARS 9310010190 931001 NORWEGIAN JOBLESS RATE OSLO THE OFFICIAL NORWEGIAN UNEMPLOYMENT RATE DECREASED TO 51 OF THE WORK FORCE IN SEPTEMBER FROM 6 IN AUGUST BUT ROSE FROM 5 IN SEPTEMBER 1992 ACCORDING TO THE STATE LABOR DIRECTORATE THE NUMBER OF PEOPLE LISTED AS UNEMPLOYED TOTALED 109400 IN SEPTEMBER COMPARED WITH 128100 IN AUGUST AND 105400 A YEAR EARLIER 9310010189 931001 GENERAL NUTRITION SHARE INCREASE PITTSBURGH GENERAL NUTRITION INC SAID SHAREHOLDERS VOTED TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES TO 95 MILLION FROM 39 MILLION AND THE NUMBER OF AUTHORIZED CLASS B COMMON SHARES TO FIVE MILLION FROM THREE MILLION WITH THE VOTE GENERAL NUTRITION'S PREVIOUSLY ANNOUNCED 2FOR1 STOCK SPLIT WILL BE EFFECTIVE OCT 5 THE RETAILER OF VITAMINS AND MINERAL SUPPLEMENTS CURRENTLY HAS 188 MILLION SHARES OUTSTANDING 9310010188 931001 CANARY WHARF CREDITORS APPROVE RESCUE PACKAGE LONDON UNSECURED CREDITORS OF THE CANARY WHARF OFFICE COMPLEX APPROVED ITS 11 BILLION 166 BILLION RESCUE PACKAGE CLEARING THE WAY FOR THE PROJECT TO EMERGE FROM COURT ADMINISTRATION AS EARLY AS THIS MONTH THE AGREEMENT WHICH REQUIRED THE SUPPORT OF 75 OF THE PROJECT'S 1400 UNSECURED CREDITORS RECEIVED UNANIMOUS APPROVAL SAID STEPHEN ADAMSON AN ERNST & YOUNG ACCOUNTANT WHO IS AN ADMINISTRATOR OF CANARY WHARF THE AGREEMENT CALLS FOR UNSECURED CREDITORS TO RECEIVE ABOUT 15 OF THEIR CLAIMS MR ADAMSON SAID ADDING THAT THEY WOULD OTHERWISE HAVE RECEIVED NOTHING CANARY WHARF WAS NEARING COMPLETION WHEN LONDON'S OFFICE MARKET COLLAPSED IN THE EARLY 1990S UNABLE TO SIGN UP ENOUGH TENANTS TO PAY OFF DEBT IT SOUGHT COURT PROTECTION FROM CREDITORS IN MAY 1992 UNDER THE RESCUE PACKAGE A 10BANK CONSORTIUM LED BY LLOYDS BANK WILL DEFER PAYMENTS ON EXISTING DEBT OF 568 MILLION PLUS ACCRUED INTEREST UNTIL 2007 9310010187 931001 INTERNATIONAL FRENCH CASHINFUSION PLAN FOR GROUPE BULL REPORTED SPECIAL TO THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT IS CONSIDERING PUMPING AS MUCH AS NINE BILLION FRANCS 16 BILLION INTO GROUPE BULL SA THE AILING STATEOWNED COMPUTER GIANT ACCORDING TO FRENCH PRESS REPORTS THE ONETIME RECAPITALIZATION WOULD WIPE OUT NEARLY ALL OF THE COMPANY'S DEBTS SAID THE DAILY LA TRIBUNE WITHOUT CITING ITS SOURCES THAT WOULD BRING TO 20 BILLION FRANCS THE SUM THE GOVERNMENT HAS INJECTED INTO THE COMPANY SINCE IT WAS NATIONALIZED IN 1982 THERE WAS NO IMMEDIATE COMMENT FROM THE GOVERNMENT A BULL SPOKESMAN ACKNOWLEDGED THAT THE COMPANY HAS A DEBT JUST OVER NINE BILLION FRANCS AND THAT BULL HAS SUBMITTED A RESTRUCTURING PLAN TO THE GOVERNMENT HE SAID THE RESTRUCTURING PLAN WAS ALSO UNDER CONSIDERATION BY THE EUROPEAN COMMUNITY AND INDICATED MONEY COULD BE INVOLVED BULL IS ON THE LIST OF COMPANIES THE CONSERVATIVE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR WANTS TO SELL OFF BULL WHICH SUSTAINED LOSSES OF 47 BILLION FRANCS LAST YEAR DOESN'T EXPECT TO BE SOLD OFF IN THE SHORT TERM THE SPOKESMAN SAID EXPLAINING THAT A TURNAROUND WAS NEEDED FIRST IT'S EASIER TO PRIVATIZE WHEN YOUR PROFITS ARE GOOD 9310010186 931001 BUSINESS BRIEF METALL MINING CORP METALLGESELLSCHAFT TO RAISE STAKE IN TORONTO COMPANY METALL MINING CORP SAID IT WILL ISSUE 15906977 COMMON SHARES VALUED AT 1075 CANADIAN DOLLARS US809 EACH TO METALLGESELLSCHAFT AG OF GERMANY IN RETURN METALL WILL RECEIVE COPPER SMELTING AND REFINING ASSETS INCLUDING A 35 STAKE IN NORDDEUTSCHE AFFINERIE AG OF GERMANY METALLGESELLSCHAFT'S STAKE IN METALL WILL CLIMB TO ABOUT 68 AFTER THE TRANSACTION IS COMPLETED UP FROM ABOUT 605 CURRENTLY METALL MINING A TORONTO BASEMETALS PRODUCER ALSO SAID THAT IT DECIDED NOT TO PROCEED WITH A SHARE ISSUE AND THAT METALLGESELLSCHAFT WON'T SELL ANY METALL SHARES AS PREVIOUSLY PLANNED METALL CITED THE CURRENT ADVERSE MARKET CONDITIONS FOR BASEMETAL STOCKS METALL HAS 647 MILLION SHARES OUTSTANDING AND THE STOCK CLOSED YESTERDAY AT C1075 UNCHANGED ON THE TORONTO STOCK EXCHANGE 9310010185 931001 BUSINESS BRIEF WAVERLY INC PRINTING BUSINESS TO BE SOLD TO CADMUS FOR 145 MILLION WAVERLY INC SAID IT AGREED TO SELL ITS PRINTING BUSINESS TO CADMUS COMMUNICATIONS CORP FOR 145 MILLION THE BALTIMORE MEDIA CONCERN SPECIALIZING IN MEDICAL INFORMATION SAID IT COULD RECEIVE ADDITIONAL PAYMENTS OF AS MUCH AS 55 MILLION DEPENDING ON FUTURE OPERATIONS THE COMPANY SAID IT EXPECTS TO RECORD A ONETIME THIRDQUARTER CHARGE OF 22 CENTS A SHARE RELATED TO THE SALE CADMUS COMMUNICATIONS RICHMOND VA WILL ENTER INTO A 10YEAR AGREEMENT WITH WAVERLY FOR THE CONTINUED PRODUCTION OF ITS JOURNALS AND WILL KEEP ALL EMPLOYEES IN THE PRINTING DIVISION WAVERLY SAID THE PRINTING BUSINESS ACCOUNTED FOR 20 OF WAVERLY'S 162 MILLION IN SALES LAST YEAR FOR FISCAL 1993 CADMUS POSTED NET INCOME OF 45 MILLION ON SALES OF 198 MILLION OR 76 CENTS A SHARE 9310010184 931001 PACTEL VENTURE'S FRENCH LICENSE SAN FRANCISCO PACTEL CORP A UNIT OF PACIFIC TELESIS GROUP SAID THE FRENCH GOVERNMENT AWARDED A PAGING LICENSE TO A VENTURE IN WHICH PACTEL'S INTERNATIONAL UNIT IS A PARTNER THE OMNICOM VENTURE WILL BUILD AND OPERATE A NATIONWIDE DIGITAL PAGING SYSTEM BASED ON THE EUROPEAN RADIO MESSAGE SYSTEM DIGITAL STANDARD THE SYSTEM OPERATES AT HIGHER SPEEDS THAN TRADITIONAL PAGING SYSTEMS AND ALLOWS LONGER MESSAGES ENOUGH WORDS TO FILL A NEWSPAPER PAGE TO BE TRANSMITTED PACTEL SAID OMNICOM EXPECTS TO BEGIN SERVICE IN PARIS BY OCTOBER 1994 THE OTHER MAJOR PARTNER IN OMNICOM IS FRANCE'S BOUYGUES 9310010183 931001 KRAFT CANADA BUYS NABOB TORONTO THE KRAFT GENERAL FOODS CANADA INC UNIT OF PHILIP MORRIS COS SAID IT PURCHASED NABOB FOODS LTD OF BURNABY CANADA TERMS WEREN'T DISCLOSED NABOB A PRIVATELY HELD COMPANY OWNED BY DR ANDREAS JACOBS OF GERMANY IS THE PARENT OF NABOB COFFEE CO A LINE OF PREPACKAGED ROAST AND GROUND COFFEE AND LIFESTREAM NATURAL FOODS WHICH MAKES CRACKERS CEREALS AND VEGETABLE PATTIES THE ACQUISITION OF NABOB WOULD WIDEN KRAFT'S SHARE OF THE CANADIAN COFFEE MARKET WHERE IT ALREADY SELLS ITS MAXWELL HOUSE LINE 9310010182 931001 MAGIC RESTAURANTS ACQUISITION YONKERS NY MAGIC RESTAURANTS INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE THE AMERICAN CAFE RESTAURANT CHAIN FROM A UNIT OF W R GRACE & CO FOR 35 MILLION IN CASH AND NOTES THE 15 RESTAURANTS IN THE WASHINGTON DC AND BALTIMORE METROPOLITAN AREAS HAVE ANNUAL SALES OF ABOUT 20 MILLION MAGIC EXPECTS TO COMPLETE THE TRANSACTION IN DECEMBER MAGIC THEN WILL OWN OR OPERATE 28 RESTAURANTS WITH ANNUAL SALES OF ABOUT 45 MILLION 9310010180 931001 WORLD STOCK INDEX CHANGE NEW YORK THE STOCK MARKETS OF FOUR COUNTRIES ARE BEING ADDED TO THE DOW JONES WORLD STOCK INDEX EFFECTIVE TODAY THE ADDITION OF DENMARK FINLAND NORWAY AND SWEDEN RAISES TO 20 THE NUMBER OF STOCK MARKETS AROUND THE GLOBE BEING TRACKED BY THE WORLD INDEX WHICH IS PUBLISHED DAILY IN THE WALL STREET JOURNAL FOR REFERENCE PURPOSES INDEXES FOR THE NEW COUNTRIES ARE SHOWN IN TODAY'S TABLES BASED ON YESTERDAY'S CLOSING PRICES HOWEVER THE NEW COUNTRIES WILL BE USED IN CALCULATING THE WORLD INDEX FOR THE FIRST TIME TODAY 9310010179 931001 BUSINESS BRIEF HORIZON RESOURCES CORP MINING COMPANY POSTS LOSS AS UNIT CEASES OPERATIONS HORIZON RESOURCES CORP SAID IT POSTED A NET LOSS OF 590391 OR 15 CENTS A SHARE ON NO REVENUE FOR ITS FIRST QUARTER ENDED JUNE 30 COMPARED WITH NET INCOME OF 24138 ON 113 MILLION IN REVENUE A YEAR EARLIER AS REPORTED ON APRIL 23 THE MINING COMPANY SUSPENDED OPERATIONS OF ITS ONLY ACTIVE UNIT HORIZON POTASH CORP BECAUSE OF DEPRESSED POTASH PRICES THE GOLDEN COLO COMPANY WHICH IS TRYING TO SELL THE UNIT AND IS NEGOTIATING A RESTRUCTURING OF ITS DEBT ATTRIBUTED THE LOSS TO INTEREST EXPENSE ON DEBT INCURRED IN ACQUIRING AND OPERATING HORIZON POTASH HORIZON RESOURCES SAID IT IS REFOCUSING ON GOLD AND BASE METAL EXPLORATION AND PRODUCTION THE COMPANY SAID IT BELIEVES TWO COLORADO LEASES IT HOLDS HAVE COMMERCIAL PROSPECTS BUT THEIR DEVELOPMENT DEPENDS ON THIRDPARTY FUNDING HORIZON RESOURCES HASN'T BEEN ABLE TO SECURE 9310010178 931001 INTERNATIONAL AIRBUS INDUSTRIE SUGGESTS US MOVE MAY VIOLATE GATT BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS AS EUROPEAN COMMUNITY AND US NEGOTIATORS PREPARE FOR TALKS NEXT WEEK ON AIRCRAFT SUBSIDIES AIRBUS INDUSTRIE AND ITS PARTNER COMPANIES ARE TAKING THE OFFENSIVE AIRBUS MANAGING DIRECTOR JEAN PIERSON WROTE THIS WEEK TO EC TRADE COMMISSIONER LEON BRITTAN TO DRAW ATTENTION TO ACTIONS BY THE US GOVERNMENT THAT THE AIRBUS OFFICIAL THINKS MAY VIOLATE THE GENERAL AGREEMENT ON TARIFFS AND TRADE MEANWHILE THE THREE MAJOR PARTNERS IN THE AIRBUS CONSORTIUM EXPRESSED CONCERN THAT THE US AND OTHER COUNTRIES ARE THREATENING EUROPE'S AEROSPACE INDUSTRY BRITISH AEROSPACE PLC DAIMLERBENZ AG UNIT DEUTSCHE AEROSPACE AG AND AEROSPATIALE SA OF FRANCE SAID THAT A PROPOSED GATT SUBSIDIES CODE IS BIASED AGAINST THE EUROPEAN INDUSTRY THE MEETING IN WASHINGTON NEXT THURSDAY AND FRIDAY IS ONE OF A REGULAR SERIES OF MEETINGS DICTATED IN AN ACCORD SIGNED BY BOTH SIDES IN JULY 1992 ON STATE AID TO CIVIL AERSOPACE MANUFACTURERS IN HIS LETTER MR PIERSON OBJECTED TO US TRANSPORTATION SECRETARY FEDERICO PENA'S RECENT VISIT TO SAUDI ARABIA MR PENA'S VISIT WAS FOR THE SIGNING OF A NEW AIR TRANSPORT AGREEMENT BETWEEN THE TWO COUNTRIES AND TO LOBBY THE SAUDI GOVERNMENT ON BEHALF OF US AEROSPACE MANUFACTURERS STATEOWNED SAUDI ARABIAN AIRLINES IS EXPECTED TO ORDER ABOUT 6 BILLION IN CIVIL AIRLINERS AND HAS BEEN TALKING WITH AIRBUS AS WELL AS BOEING CO BASED IN SEATTLE WASH AND MCDONNELL DOUGLAS CORP OF ST LOUIS MR PIERSON SAID IN HIS LETTER THAT THE US OFFICIAL MAY BE LINKING THE AIR TRANSPORT AGREEMENT TO THE AIRCRAFT SALE IN VIOLATION OF THE CURRENT GATT ACCORD AN OFFICIAL AT THE US DEPARTMENT OF TRANSPORTATION INSISTED THAT MR PENA WASN'T VIOLATING GATT RULES AND THAT THE AIR TRANSPORT AGREEMENT ISN'T LINKED IN ANY WAY TO AIRCRAFT SALES 9310010177 931001 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED SEPT 24 ACCOUNTED FOR 92 OR AN AVERAGE 245 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 175 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 STOCKS WITH A VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 337 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 455 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 568 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR ACCOUNTS OR PRINCIPAL TRADING WHILE 364 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 68 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES MORGAN STANLEY NOMURA SECURITIES AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE LEHMAN BROS DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9310010176 931001 J2'S NATIONAL LAMPOON LOS ANGELES J2 COMMUNICATIONS INC SAID IT IS PURSUING THE IDEA OF LENDING ITS NATIONAL LAMPOON NAME TO RESTAURANTS RETAIL COMPLEXES AND THEME PARKS THE COMPANY SAID IT AGREED TO LET KBD INNOVATIVE ENTERPRISES INC MARINE DEL REY CALIF DEVELOP ENTERTAINMENT COMPLEXES USING THE NATIONAL LAMPOON THEME BUT IT SAID THAT NO SITE HAS BEEN SELECTED FOR SUCH A PROJECT AND THAT DISCUSSIONS WITH POTENTIAL EQUITY PARTNERS HAVEN'T YET BEGUN 9310010175 931001 COASTAL UNIT PLANS REDEMPTION HOUSTON COASTAL CORP SAID ITS ANR PIPELINE CO UNIT PLANS TO REDEEM 100000 SHARES OF ITS 212 CUMULATIVE PREFERRED STOCK AT A PRICE OF 25 EACH PLUS ACCRUED DIVIDENDS TO OCT 31 COASTAL AN ENERGY HOLDING COMPANY SAID THERE ARE 900000 SHARES OF THE PREFERRED SERIES OUTSTANDING 9310010174 931001 LEAVITT PLANS MEETING WITH MUNICIPAL FIRMS ON POLITICAL PAYOFFS WASHINGTON SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT HAS INVITED SENIOR OFFICIALS OF LEADING MUNICIPAL BOND UNDERWRITING FIRMS TO MEET WITH HIM TO ADVANCE THE CAUSE OF CURBING POLITICAL PAYOFFS BY BOND DEALERS TO STATE AND LOCAL OFFICIALS ABOUT A DOZEN OFFICIALS ARE EXPECTED TO ATTEND THE SESSION WHICH IS SCHEDULED FOR OCT 18 WHILE SEC OFFICIALS AREN'T PREDICTING THE OUTCOME OF THE MEETING THE CURRENT EXPECTATION OF SOME OFFICIALS WHO PLAN TO ATTEND IS THAT THEY WILL ANNOUNCE THAT THEIR FIRMS ARE VOLUNTARILY FORSWEARING POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS WHATEVER COMES OUT OF THE MEETING ISN'T EXPECTED TO UNDERCUT THE MUNICIPAL SECURITIES RULEMAKING BOARD'S PROPOSAL TO BAR BOND DEALERS FROM MAKING POLITICAL CONTRIBUTIONS TO OBTAIN OR RETAIN MUNICIPAL BUSINESS AND TO REQUIRE DEALERS TO DISCLOSE CONTRIBUTIONS TO OFFICIALS WITH WHOM THEY HAVE DONE BUSINESS THE IMPACT OF THE MSRB PROPOSAL CONTINUES TO BE THE SUBJECT OF DIFFERING VIEWS IN MUNICIPAL BOND MARKET CIRCLES THE GOVERNMENT FINANCE OFFICERS ASSOCIATION TOLD THE MSRB THAT THE PROPOSAL MAY BE SO BROAD AS TO CONSTITUTE AN EFFECTIVE BAN ON ALL DEALER CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS BUT JP MORGAN & CO FOR ONE SAID IT HAS SERIOUS CONCERNS ABOUT THE EFFECTIVENESS OF THE PROPOSED RULE POLITICAL CONTRIBUTIONS BY MUNICIPAL SECURITIES DEALERS AND THEIR ASSOCIATED PERSONS SHOULD BE LIMITED IN THE AGGREGATE TO AN AMOUNT THAT COULD NOT REASONABLY BE EXPECTED TO HAVE AN EFFECT ON THE JUDGMENT OF AN ELECTED OFFICIAL MORGAN SAID IN A LETTER TO THE MSRB IT SAID THE BOARD'S CURRENT PROPOSAL WOULD SERVE NEITHER TO ELIMINATE IMPROPER POLITICAL CONTRIBUTIONS NOR TO AVOID THE APPEARANCE OF IMPROPRIETY IN CONNECTION WITH CONTRIBUTIONS THE MSRB A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT WILL CONSIDER COMMENTS FROM INTERESTED PARTIES AND PLANS TO ADOPT A RULE ON CONTRIBUTIONS THIS FALL 9310010173 931001 WHO'S NEWS US FILTER CORP US FILTER CORP PALM DESERT CALIF MICHAEL J REARDON 39YEAROLD EXECUTIVE VICE PRESIDENT WAS APPOINTED TO THE ADDITIONAL NEWLY CREATED POST OF CHIEF OPERATING OFFICER HE ALSO SERVED AS GENERAL MANAGER OF THE COMPANY'S ILLINOIS WATER TREATMENT INC SUBSIDIARY WHERE HE IS SUCCEEDED BY JAMES P LAURITO 36 PREVIOUSLY VICE PRESIDENT OPERATIONS OF THE UNIT US FILTER MAKES EQUIPMENT FOR THE WATER AND WASTEWATER TREATMENT INDUSTRY 9310010172 931001 WHO'S NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO CHARLES C RIEGER JR 60 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF THIS MANUFACTURER OF FIRE TRUCKS SPORTS CLOTHING PACKAGING MACHINERY AND CARD ENTRY CONTROL SYSTEMS MR RIEGER IS A FORMER GROUP VICE PRESIDENT IN CHARGE OF CARD ENTRY CONTROL SYSTEMS FIRE TRUCKS SPORTS WEAR MATERIAL HANDLING SYSTEMS AND INSURANCE HIS RESPONSIBILITIES WILL REMAIN THE SAME IN HIS NEWLY CREATED SENIOR VICE PRESIDENT POSITION 9310010171 931001 MIRAGE RESORTS' GOLDEN NUGGET SET TO BE SPUN OFF BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL MIRAGE RESORTS INC PLANS TO SPIN OFF ITS ORIGINAL GOLDEN NUGGET CASINO IN DOWNTOWN LAS VEGAS AND ITS LAUGHLIN NEV CASINO CREATING A SEPARATE GAMBLING CONCERN THAT WILL SPECIALIZE IN SMALLER PROJECTS STEPHEN A WYNN MIRAGE RESORTS' CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE NEW COMPANY ALSO WILL INCLUDE TWO SITES IN ATLANTIC CITY NJ WHICH ARE ZONED FOR CASINO DEVELOPMENT MIRAGE PLANS TO FILE THE APPROPRIATE DOCUMENTS WITH THE INTERNAL REVENUE SERVICE WITHIN A FEW WEEKS MR WYNN SAID AND A RULING ON THE TAX STATUS OF THE PROPOSED TRANSACTION IS EXPECTED TO BE ISSUED IN THREE TO FIVE MONTHS THE PLAN WILL CALL FOR MIRAGE SHAREHOLDERS TO RECEIVE ONE SHARE OF THE NEW GOLDEN NUGGET STOCK FOR EACH MIRAGE SHARE CURRENTLY HELD MR WYNN SAID BARRY SCHIER WHO RUNS THE DOWNTOWN PROPERTY WOULD OVERSEE THE NEW CONCERN HE ADDED EARLIER THIS YEAR MIRAGE HAD THREATENED TO SPIN OFF THE DOWNTOWN CASINO SINCE BONDHOLDERS FOR ITS GNLV FINANCE SUBSIDIARY WHICH IS AFFILIATED WITH THE GOLDEN NUGGET PROPERTY HAD BALKED AT A DEBT SWAP OFFER THE BONDHOLDERS IN JULY REJECTED AN EXCHANGE OFFER FOR GNLV FINANCE'S 1275 UNSECURED NOTES FOR WHICH MIRAGE HAD BEEN OFFERING TO SWAP AS MUCH AS 1129 MILLION PRINCIPAL AMOUNT OF NEW 925 SENIOR SUBORDINATED NOTES BACKED BY THE PARENT COMPANY AT THE TIME THE INVESTORS HAD BET MIRAGE WOULDN'T RISK ITS REPUTATION ON WALL STREET BY SPINNING OFF THE HIGHLY LEVERAGED DOWNTOWN CASINO AND ANGERING DEBTHOLDERS UNDER THE CURRENT PLAN THE NEW COMPANY WOULD HAVE DEBT OF ABOUT 225 MILLION AND CASH FLOW OF NEARLY 65 MILLION THE COMPANY SAID THE GOLDEN NUGGET HAS BECOME LESS STRATEGICALLY IMPORTANT TO MIRAGE WITH THE OPENING OF ITS FLAGSHIP MIRAGE RESORT IN 1989 ITS SOONTOOPEN TREASURE ISLAND CASINO ON THE STRIP AND ITS AMBITIOUS PLAN FOR A MAJOR DEVELOPMENT ON THE DUNES HOTEL SITE DOWN THE STREET MIRAGE'S STOCK ROSE 875 CENTS TO 5825 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BY SWEETENING THE POT AND SPINNING OFF A STRONGER COMPANY MIRAGE HOPES TO PLACATE BONDHOLDERS AND YET ALLOW ITSELF TO STRENGTHEN ITS OWN BALANCE SHEET AND AIM FOR AN INVESTMENTGRADE CREDIT RATING THE DOWNTOWN CASINO ACCOUNTS FOR ABOUT 30 OF MIRAGE'S 825 MILLION IN CONSOLIDATED DEBT BUT WOULD ONLY PRODUCE ABOUT 10 OF EARNINGS AFTER THE OPENING OF TREASURE ISLAND COMPANY OFFICIALS SAID 9310010170 931001 BUFFETT TO BUY DEXTER SHOE CO FOR 420 MILLION BERKSHIRE HATHAWAY TO PAY IN STOCK A DEPARTURE FROM USUAL CASH BASIS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL BERKSHIRE HATHAWAY INC THE INVESTMENT VEHICLE FOR FINANCIER WARREN BUFFETT AGREED TO ACQUIRE CLOSELY HELD DEXTER SHOE CO FOR ABOUT 420 MILLION IN STOCK DEXTER BASED IN DEXTER MAINE IS THE NATION'S BIGGEST INDEPENDENTLY OWNED FOOTWEAR MAKER AND SELLS CLASSIC NEW ENGLAND CASUAL FOOTWEAR INCLUDING MOCCASINS AND BOATTYPE SHOES UNDER THE WELLREGARDED DEXTER LABEL IT'S UNUSUAL FOR BERKSHIRE TO DO A STOCK DEAL THE BILLIONAIRE FINANCIER'S ACQUISITIONS TYPICALLY ARE MADE ON A CASH BASIS A BERKSHIRE OFFICIAL SAID WE WOULD HAVE DONE IT FOR EITHER CASH OR STOCK BUT DEXTER SHAREHOLDERS WANTED IT IN STOCK MR BUFFETT ONE OF THE NATION'S BESTKNOWN INVESTORS IS BERKSHIRE HATHAWAY'S CHAIRMAN AND HOLDS 41 OF ITS 115 MILLION OUTSTANDING SHARES THE INVESTOR YESTERDAY CALLED DEXTER SHOE EXACTLY THE TYPE OF BUSINESS BERKSHIRE HATHAWAY ADMIRES CITING ITS LONG PROFITABLE HISTORY ENDURING FRANCHISE AND SUPERB MANAGEMENT DEXTER WILL CONTINUE TO OPERATE UNDER ITS EXISTING MANAGEMENT BERKSHIRE DECLINED TO PROVIDE ANY FINANCIAL INFORMATION ABOUT DEXTER AND OFFICIALS FROM THE SHOE COMPANY DIDN'T RETURN PHONE CALLS BERKSHIRE HATHAWAY ALREADY HAS INTERESTS IN THE FOOTWEAR INDUSTRY THROUGH ITS 1991 PURCHASE OF HH BROWN SHOE CO A MAKER OF WORK SHOES BOOTS AND CASUAL SHOES DEXTER NOTED IN A RELEASE THAT BERKSHIRE IS FAMILIAR WITH THE SHOE INDUSTRY AND SHARES OUR MANAGEMENT PHILOSOPHY OF FOCUSING ON LONGTERM GOALS MR BUFFETT MAKES A POINT OF INVESTING FOR THE LONG TERM AND HAS SEEN IMMENSE PAPER PROFITS ON HIS INVESTMENTS IN SUCH COMPANIES AS WASHINGTON POST CO INSURER GEICO CORP CAPITAL CITIES/ABC INC AND COCACOLA CO IN ADDITION BERKSHIRE OWNS OUTRIGHT OR HAS INTERESTS IN A HOST OF COMPANIES IN FIELDS AS DIVERSE AS INSURANCE CANDY AND MANUFACTURING IN BERKSHIRE'S LATEST ANNUAL REPORT ISSUED IN MARCH MR BUFFETT INDICATED HE WOULD LIKE TO MAKE A FRIENDLY ACQUISITION FOR 2 BILLION TO 3 BILLION PREFERABLY IN CASH TRUE TO FORM THE LEGENDARY INVESTOR DIDN'T SAY WHAT INDUSTRY HE MIGHT BE CONSIDERING BUT REITERATED THAT HE SEEKS CONSISTENT EARNINGS STRONG MANAGEMENT AND A BUSINESS THAT IS SIMPLE TO UNDERSTAND HAVING SERVED A STINT AS INTERIM CHAIRMAN OF SALOMON INC AFTER THE SECURITIES FIRM WAS HIT BY SCANDAL MR BUFFETT RECENTLY ASKED FEDERAL REGULATORS FOR PERMISSION TO BOOST HIS CURRENT 143 SALOMON STAKE TO AS MUCH AS 249 BERKSHIRE WILL SWAP 25221 OF ITS SHARES TO ACQUIRE DEXTER AS A RESULT OF MR BUFFETT'S LONGTIME AVERSION TO STOCK SPLITS THE MODESTSOUNDING NUMBER OF SHARES INVOLVED IN THE TRANSACTION REPRESENTS MORE VALUE THAN MIGHT FIRST BE IMAGINED BERKSHIRE SHARES CLOSED YESTERDAY UP 75 AT 16675 VOLUME WAS 50 SHARES 9310010169 931001 INTERNATIONAL ALITALIA FIRSTHALF LOSS WIDENED MILAN ALITALIA SPA ITALY'S FLAGSHIP AIRLINE SAID ITS LOSS WIDENED TO 214 BILLION LIRE 136 MILLION IN THE FIRST HALF FROM 39 BILLION LIRE IN THE YEAREARLIER PERIOD ALITALIA SAID IT EXPECTS A LOSS FOR ALL OF 1993 BARRING RADICAL CHANGES IN THE INTERNATIONAL COMPETITIVE CLIMATE AND THE ITALIAN ECONOMIC SITUATION THE COMPANY SAID IT CARRIED 29 MORE PASSENGERS IN THE 1993 FIRST HALF DESPITE A 9 DECLINE IN DOMESTIC TRAFFIC ALITALIA SAID IT WAS COUNTERING ITS PROBLEMS BY USING CAPACITY TO MATCH VARIABLE DEMAND COMPETING AGGRESSIVELY ON FARES AND IMPROVING EFFICIENCY 9310010168 931001 WMX SLATES BIG WRITEDOWN JOB CUTS AS HAZARDOUSWASTE INDUSTRY STRUGGLES BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC ADMITTING A STINGING DEFEAT IN ITS ONCEBOOMING HAZARDOUSWASTE BUSINESS WROTE DOWN THE VALUE OF INCINERATORS AND OTHER ASSETS BY 550 MILLION AND SAID IT PLANS TO CUT 1200 JOBS IN AN INTERVIEW PAT PAYNE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S 79OWNED CHEMICAL WASTE MANAGEMENT INC UNIT SAID THAT MAKING BIG INVESTMENTS IN THE ENVIRONMENTAL BUSINESS HAS GROWN INCREASINGLY RISKY BECAUSE OF SHIFTING FEDERAL POLICIES THE ANNOUNCEMENT SHOWED HOW COMPLETELY THE HAZARDOUSWASTE INDUSTRY HAS CHANGED IN THE 1990S TOXICWASTE VOLUMES SHRINKING INSTEAD OF RISING TOO MUCH INCINERATION AND DUMP CAPACITY INSTEAD OF TOO LITTLE AND CUTTHROAT PRICE COMPETITION INSTEAD OF STEEP INCREASES WASTEHANDLERS PUSHED THROUGH DURING THE 1980S THE CHANGES REFLECTING SURPRISING WASTEREDUCTION EFFORTS BY MAJOR CHEMICAL AND MANUFACTURING CONCERNS AND THE SLOWERTHANEXPECTED CLEANUP OF CONTAMINATED SITES BY THE PUBLIC AND PRIVATE SECTORS HAVE HURT ALL THE INDUSTRY'S MAJOR PLAYERS THOUGH WMX TECHNOLOGIES' CUTBACKS ARE THE MOST SEVERE TO DATE THE WORLD'S LARGEST WASTE HANDLER BASED IN OAK BROOK ILL STOPPED SHORT OF CLOSING ANY OF ITS SEVEN HAZARDOUSWASTE DUMPS A MOVE THAT COULD ACCELERATE HUGE ENVIRONMENTAL LIABILITIES THOUGH WMX SAID IT WOULD ESSENTIALLY MOTHBALL A CHICAGOAREA DUMP UNTIL VOLUMES INCREASE MR PAYNE SAID CAPITAL SPENDING WOULD BE SLASHED BY HALF THIS YEAR AND AGAIN BY HALF NEXT YEAR FALLING TO 50 MILLION IN 1994 FROM MORE THAN 200 MILLION LAST YEAR HE SAID THE COMPANY EXPECTS NO REVENUE GROWTH NEXT YEAR OVER 1993'S EXPECTED 660 MILLION IN JULY CHEMICAL WASTE SAID THAT WORSENING PROSPECTS IN THE BUSINESS WOULD REQUIRE IT TO SPEND THE THIRD QUARTER REVIEWING OPERATIONS AND PERHAPS TAKE A CHARGE WITH A HUGE FLEET OF TRUCKS A NETWORK OF TREATMENT AND DISPOSAL SITES AND 5100 WORKERS THE COMPANY HAS HIGH OVERHEAD TAKEN ON IN A PERIOD WHEN REVENUES AND PROFITS WERE GROWING THE JOB CUTS WILL REDUCE CHEMICAL WASTE'S EMPLOYMENT BY 235 WMX AS A WHOLE EMPLOYS ABOUT 67000 PEOPLE MR PAYNE ACKNOWLEDGED THAT OPTIONS CONSIDERED BY THE PARENT COMPANY THIS SUMMER RANGED FROM A SLIGHT FINE TUNING TO A LANDFILLONLY BRINGINYOUROWN STUFF DISMEMBERING THAT COULD HAVE RESULTED IN CHEMICAL WASTE CEASING TO BE A PUBLICLY HELD COMPANY IN THE END MR PAYNE SAID THE COMPANY DECIDED THE BUSINESS WHILE MORE DIFFICULT WAS WORTH STAYING IN AND OPERATING SEPARATELY THE THIRDQUARTER CHARGE TOTALED 363 MILLION OR 174 A SHARE FOR CHEMICAL WASTE THOSE SHARES FELL 25 CENTS OR 29 TO CLOSE AT 850 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WMX SHARES FELL 1 OR 32 TO CLOSE AT 3050 A SHARE IN BIG BOARD TRADING THE CHARGE RESULTED IN A BIG THIRDQUARTER LOSS FOR CHEMICAL WASTE COMPARED WITH NET INCOME A YEAR EARLIER OF 387 MILLION OR 19 CENTS A SHARE FOR WMX TECHNOLOGIES ITS SHARE OF THE CHARGE 2853 MILLION OR 59 CENTS A SHARE OF THE PARENT CAUSED A SMALL LOSS OPERATING PROFIT IN THE THIRD QUARTER HAD BEEN ESTIMATED BY WALL STREET ANALYSTS AT 43 CENTS TO 45 CENTS OR ABOUT 210 MILLION TO 220 MILLION ABOUT 70 OF THE CHARGE IS TO WRITE DOWN THE VALUE OF INCINERATORS AND SOCALLED FUEL BLENDING OPERATIONS THAT MIX WASTE WITH OILS FOR BURNING WMX TECHNOLOGIES AGGRESSIVELY SOUGHT INCINERATION PERMITS AFTER THE ENVIRONMENTAL PROTECTION AGENCY IN THE 1980S ANNOUNCED PLANS TO BAN MUCH LAND DUMPING OF HAZARDOUS WASTE AND ENDORSED BURNING BUT ENVIRONMENTAL GROUPS OPPOSED INCINERATION AND EARLIER THIS YEAR THE EPA ANNOUNCED A MORATORIUM ON NEW INCINERATION PERMITS AND INDICATED THE TECHNOLOGY IS NO LONGER IN FAVOR EPA DESIGNATED A PREFERRED TECHNOLOGY MR PAYNE SAID WE ALL START BUILDING THESE THINGS THEN BY THE TIME WE GET THEM ON LINE THERE'S A LACK OF ENFORCEMENT AND REGULATION THE GOVERNMENT HAS GOT TO MAKE UP ITS MIND WMX TECHNOLOGIES ON A SMALLER SCALE ALSO OVERBUILT IN MEDICAL WASTE INCINERATION AND CONSUMER RECYCLING AND HAS SUFFERED AS EXPECTED GOVERNMENT ACTION TO PUSH WASTE TOWARD SUCH FACILITIES FAILED TO MATERIALIZE MR PAYNE SAID THAT IN HAZARDOUS WASTE THE COMPANY WILL BE FAR WARIER IN THE FUTURE ABOUT MAKING SUCH INVESTMENTS CUTTING COSTS AND SPENDING THE COMPANY AIMS TO GENERATE CASH AND REDUCE DEBT HE SAID EXCLUDING THE HUGE CHARGE AND RESULTS FROM 56OWNED RUST INTERNATIONAL INC CHEMICAL WASTE EXPECTED OPERATING PROFIT FOR ALL OF 1993 OF TWO TO THREE CENTS A SHARE AND FOR ALL OF 1994 IF REVENUE IS FLAT OF 20 CENTS TO 30 CENTS CHEMICAL WASTE HAS ABOUT 205 MILLION SHARES OUTSTANDING 9310010167 931001 WESTERN GERMAN CONSTRUCTION WIESBADEN GERMANY RESIDENTIAL CONSTRUCTION COSTS IN WESTERN GERMANY ROSE 04 FROM MAY TO AUGUST THE FEDERAL STATISTICS OFFICE REPORTED AUGUST BUILDING COSTS FOR NEW CONVENTIONAL RESIDENCES WERE 4 HIGHER THAN IN AUGUST 1992 9310010165 931001 BUSINESS BRIEF MERCEDES PORTRAYS NEW ALABAMA PLANT AS KEY ELEMENT IN CORPORATE MAKEOVER TUSCALOOSA ALA MERCEDESBENZ AG MAKING THE EXPECTED ANNOUNCEMENT OF PLANS TO BUILD ITS FIRST US CAR PLANT ON A 1000ACRE SITE NEAR HERE PORTRAYED THE PROJECT AS A KEY ELEMENT IN ITS CORPORATE MAKEOVER THE GERMAN LUXURYCAR MAKER HAS HIT ON HARD TIMES LATELY ITS PROFITS DAMAGED BY ONE OF THE WORLD'S HIGHEST COST STRUCTURES BY STIFFENING GLOBAL COMPETITION AND BY RECESSION IN ITS BIGGEST MARKETS THE US PLANT IS INTENDED TO HELP THE UNIT OF DAIMLERBENZ AG GERMANY'S BIGGEST COMPANY TO TURN THAT SITUATION AROUND IN AN INTERVIEW AFTER ANNOUNCING THE 300 MILLION PROJECT MERCEDES CHAIRMAN HELMUT WERNER SAID THE SHORTTERM OUTLOOK HASN'T BRIGHTENED MUCH WORLDWIDE MERCEDES EXPECTS SALES THIS YEAR TO FALL ABOUT 500 UNITS FROM LAST YEAR'S LEVEL TO AROUND 527000 IN THE US SALES THROUGH AUGUST HAVE BEEN OFF ABOUT 9 MR WERNER HELD OUT LITTLE HOPE FOR ANY BROADBASED RECOVERY NEXT YEAR IN EUROPE THE EXECUTIVE EARLIER THIS YEAR LAUNCHED A DRIVE TO EMBRACE LEAN MANUFACTURING AND MAKE MERCEDES MORE COMPETITIVE BY INTRODUCING NEW MODELS MERCEDES SAID THE ALABAMA PLANT WILL BUILD A SPORTUTILITY VEHICLE IN THE 20000 TO 30000 PRICE RANGE A FIRST FOR THE COMPANY AND THE CHEAPEST CAR IN ITS LINEUP THAT WOULD COMPETE AGAINST THE LIKES OF FORD MOTOR CO'S POPULAR EXPLORER AND CHRYSLER CORP'S JEEP GRAND CHEROKEE MERCEDES SAID THE PLANT HERE ALSO WILL SERVE AS A LABORATORY FOR LEARNING HOW TO BUILD CARS MORE EFFICIENTLY IT WILL EMPLOY ONLY ABOUT 1200 WORKERS AND WILL RELY HEAVILY ON SUPPLIERS AND IT IS ALREADY SHAPING UP AS AN EXPERIMENT IN DECENTRALIZATION THE PROJECT IS UNDER THE COMMAND OF A SMALL AUTONOMOUS GROUP OF YOUNG EXECUTIVES WHO AVERAGE 36 YEARS OF AGE 9310010164 931001 LEISURE & ARTS THEATER A DIFFERENT PREJUDICE BY JOEL HENNING CHICAGO STEVE CARTER AUTHOR OF EDEN IS A MINOR PLAYWRIGHT IF MAJOR MEANS SOMEONE WHO'S EITHER PRODUCED ON BROADWAY OR ADAPTED FOR HOLLYWOOD HE IS ALSO A MINORITY PLAYWRIGHT AND THE QUESTION IS WHETHER THE TWO ARE RELATED THE ANSWER ISN'T CLEAR EDEN AT THE VICTORY GARDENS THEATER UNTIL SUNDAY IS A DIFFICULT PLAY IT IS ABOUT PREJUDICE NOT BETWEEN WHITES AND BLACKS BUT BETWEEN WEST INDIAN AND SOUTHERN BLACKS IT IS ABOUT POLITICS NOT LIBERALS AGAINST CONSERVATIVES BUT SUPPORTERS OF MARCUS GARVEY'S BACK TO AFRICA MOVEMENT VS BLACK AMERICAN ASSIMILATIONISTS IT IS ABOUT FAMILY VALUES NOT ONEPARENT VS TWOPARENT HOMES BUT UNQUESTIONED PATRIARCHY VS THE RIGHTS OF WOMEN TO CHOOSE CAREER OVER MARRIAGE AND LOVE OVER PRACTICAL ARRANGEMENTS AND IT IS A CLASSIC RETELLING OF THE ROMEO AND JULIET TALE THE SCENE IS SAN JUAN HILL ON MANHATTAN'S WEST SIDE IN 1927 THE BARTON FAMILY IS WEST INDIAN THEY LIVE NEXT DOOR TO THE BAYLORS RECENT ARRIVALS FROM THE SOUTH JOSEPH BARTON IS A PROUD MAN DETERMINED THAT HIS FOUR CHILDREN WILL BE DISCIPLINED AND EDUCATED HE ENCOURAGES ONE OF HIS DAUGHTERS AGNES TO MAKE HER WAY IN THE WORLD OF BUSINESS BY STUDYING TO BE A SECRETARY BUT ANNETTA HIS YOUNGER DAUGHTER SEEMS TO HER FATHER TO BE UNINTERESTED IN BOOKS SO HE SADDLES HER WITH HOUSEHOLD CHORES AND ATTEMPTS TO MARRY HER OFF TO ONE OF HIS COLLEAGUES IN THE BACK TO AFRICA MOVEMENT BARTON DESPISES THE RUSTIC WAYS OF HIS NEIGHBORS THE BAYLORS AND FORBIDS ANNETTA TO SEE EUSTACE BAYLOR A SWEET HANDSOME LAIDBACK SOUTHERNER SENT TO THE BIG CITY AFTER HIS MOTHER'S DEATH TO LIVE WITH HIS AUNT LIZZIE WHO RUNS A HONKYTONK POOL HALL THIS WORLD IS NOT UNFAMILIAR TO EDEN DIRECTOR CHUCK SMITH WHO HAS MOUNTED OTHER CARTER PLAYS IN THE PAST CONSISTENTLY HE KNOWS HOW TO TOUCH US WITH EMOTIONAL DILEMMAS THAT HAVE NOT BEEN A PART OF BLACK OR WHITE CULTURE FOR AT LEAST A GENERATION THUS WHEN FLORIE BARTON ANNETTA'S MOTHER CONSPIRES TO HELP ANNETTA UNITE WITH EUSTACE WE FEEL FLORIE'S VICARIOUS AWAKENING TO ALL SHE HAS MISSED AS JOSEPH BARTON'S SUBMISSIVE WIFE WE UNDERSTAND JOSEPH'S DEEP COMMITMENT TO THE GARVEY MOVEMENT AND WINCE AT HIS WEEKLY ENCOUNTERS WITH RIDICULE AS BLACK AND WHITE SPECTATORS ALIKE JEER AT HIM AND HIS TINY BELEAGUERED BAND OF COLLEAGUES MARCHING FOR THEIR CAUSE BUT WE DESPISE HIM AND SUFFER WITH HIS FAMILY EACH TIME HE BRUTALIZES THEM IN THE NAME OF DISCIPLINE WE SHARE ANNETTA'S POWERLESSNESS AS SHE PLODS THROUGH HER DOMESTIC ROUTINE IN ALMOST CINDERELLALIKE SERVICE TO THE REST OF HER FAMILY WHEN THE YOUNG AMERICANBORN BARTON SONS ARE KEPT FROM PLAYING WITH COMMON KIDS THEIR OWN AGE WE ARE AS FRUSTRATED AS THEY IF MR SMITH CAN'T BE MORE THAN OBSCURE IN DRAMATIZING THE HINTS OF INCEST AND SEXUAL ABUSE BETWEEN JOSEPH AND ANNETTA IT'S BECAUSE THAT'S ALL THERE IS IN MR CARTER'S SCRIPT TOO BAD IN A WAY THAT THESE MUDDLED ELEMENTS OF EDEN ARE THOSE THAT WOULD BE MOST LIKELY TO RESONATE WITH A MODERN AUDIENCE THE PLAY ALSO SUFFERS FROM MR CARTER'S INABILITY TO WRITE DIALOGUE FOR HIS UNEDUCATED SOUTHERN BLACKS AS CONVINCING AS THE WORDS HE GIVES HIS WELLSCHOOLED WEST INDIAN CHARACTERS RICK WORTHY IS HAMPERED ONLY SLIGHTLY BY THE BLAND TEXT AND PLAYS THE ROMEO FIGURE WITH ANIMAL VITALITY HIS EUSTACE IS BIG CHEERFUL AND HANDSOME EXCEPT WHEN HE IS BEING THWARTED BY BARTON AND TURNS MENACING IN MOOD AND ACTION WHEN HE MARRIES ANNETTA WE SEE HIM TURN INTO ANOTHER KIND OF TOUGH MALE HE BRISTLES AT HER ATTEMPTS TO CORRECT HIS GRAMMAR AND SHOUTS YOU A NIGGER NOW MR WORTHY COMBINES IRREPRESSIBLE CHARM WITH REAL TALENT SO FAR HE HAS ONLY APPEARED ON A COUPLE OF TELEVISION DRAMAS BUT HE IS CLEARLY GOING TO HAVE A BUSY CAREER CHERYL LYNN BRUCE FLORIE HAS TO TREAD CAREFULLY BETWEEN SUBMISSION AND REBELLION AS SHE WORKS TO MAINTAIN HER HOUSEHOLD WHILE HELPING TO LIBERATE HER DAUGHTER HER NARRATIVES OF THE JOYLESS CIRCUMSCRIBED LIFE SHE HAS ENDURED ARE ALMOST MUSICAL ESPECIALLY IN THE LILTING WEST INDIAN ACCENT THAT SHE HAS MASTERED KELI GARRETT WHO PLAYS ANNETTA THE JULIET FIGURE IS UNFORTUNATELY LESS COMFORTABLE WITH ISLAND SPEECH PERHAPS AS A RESULT SHE'S NOT CONVINCING IN HER HIGHPASSION HIGHRISK ROMANCE WITH EUSTACE JONELL KENNEDY DOES WELL AS THE OLDER SISTER ESTEEMED ENOUGH BY HER FATHER TO BE SUPPORTED IN STUDYING TO BE A SECRETARY BUT SHE IS ALSO THROWN BY THE CARIBBEAN ACCENT TIM RHOZE IS TOO YOUNG TO PLAY JOSEPH BARTON A MIDDLEAGED PATRIARCH BUT HE WORKS HARD AT IT AND IS ESPECIALLY EFFECTIVE WHEN HIS STRONG WILL IS PITIFULLY MISMATCHED AGAINST EUSTACE'S PHYSICAL STRENGTH JAMES DARDENNE'S SET INGENIOUSLY SUGGESTS THE TINY TEEMING TENEMENT AND THE RELATIVE FREEDOM OF ITS ROOF WHERE THE LADIES HANG THEIR WASH AND THE LOVERS TRYST CLAUDIA BODDY'S COSTUMES CAPTURE AN INTERESTING ASPECT OF THE ROARING '20S AS EXPERIENCED BY THE DESERVING AND UNDESERVING POOR THE BARTON BOYS WEAR WOOLY SCRATCHY UNCOMFORTABLE OUTFITS THE BARTON WOMEN ARE POOR BUT PRIM WHILE THE BAYLORS ARE DRESSED IN COLORFUL COMFORT COMBINING SOUTHERN RUSTICITY WITH NEW YORK FLASH THIS ALL WORKS SO WELL WE ARE LEFT WITH THE QUESTION OF WHY MR CARTER REMAINS A MINOR PLAYWRIGHT UNKNOWN ON EITHER COAST ALTHOUGH EDEN HAS BEEN SEEN IN AMSTERDAM AND IN LONDON TWICE TRUE HIS LANGUAGE DOESN'T SOAR LIKE SAY THAT OF LORRAINE HANSBERRY IN RAISIN IN THE SUN AND THE POLITICS OF MARCUS GARVEY AREN'T AS THEATRICAL AS THE MUSIC OF MA RAINEY IN AUGUST WILSON'S MA RAINEY'S BLACK BOTTOM BUT EDEN HAS FAR MORE COMPLEXITY AND CHARACTER THAN RAISIN IN THE SUN AND MORE THEATRICAL STYLE AND TECHNIQUE THAN ANY OF MR WILSON'S PRIZEWINNING BROADWAY PRODUCTIONS EDEN TELLS US FAR MORE ABOUT THE RANGE OF BLACK EXPERIENCE IN AMERICA THAN BOYZ N THE HOOD AND MENACE 2 SOCIETY EVER WILL IT'S NOT THAT MINORITY WORK DOESN'T GET AMPLIFIED THESE DAYS BUT THE RELATIVE OBSCURITY OF MR CARTER'S EDEN SUGGESTS THAT MAJOR PRODUCERS OF MINORITY WORK MAY HAVE A TENDENCY TO CHOOSE THE PATH OF LEAST RESISTANCE 9310010163 931001 AMERICAN FILM TECHNOLOGIES LOS ANGELES AMERICAN FILM TECHNOLOGIES INC SAID GERALD M WETZLER A NEW YORK INVESTOR AGREED TO ACQUIRE A CONTROLLING STAKE IN THE COMPANY MR WETZLER PURCHASED ONE MILLION PREFERRED SHARES WHICH WILL BE DIVIDED INTO FOUR SERIES EACH CONVERTIBLE INTO COMMON STOCK OVER A PERIOD OF TIME AT INCREASING EXERCISE PRICES UPON CONVERSION OF THE FIRST TWO SERIES EXPECTED TO BE COMPLETED BY OCT 31 MR WETZLER WOULD HAVE PAID ABOUT 33 MILLION FOR 75 OF THE COMPANY'S COMMON SHARES LAST MAY AMERICAN FILM WHICH PRODUCES INTEGRATED DIGITAL ANIMATION AND SPECIAL EFFECTS FOR TELEVISION AND FEATURE FILMS SAID IT HAD REACHED A PROVISIONAL AGREEMENT TO SELL A CONTROLLING INTEREST IN THE COMPANY TO PAT ROBERTSON THE TV EVANGELIST AND A GROUP OF INVESTORS BUT THE TRANSACTION WASN'T COMPLETED 9310010162 931001 GINNIE MAE PLANS MARCH 1 UNVEILING OF ITS NEW REMICS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION'S FIRST BATCH OF NEW MORTGAGEBACK SECURITIES KNOWN AS REMICS IS LIKELY TO BE AVAILABLE FOR INVESTORS BY ABOUT MARCH 1 GINNIE MAE OFFICIALS SAID OFFICIALS AT GINNIE MAE A GOVERNMENT CORPORATION WITHIN THE DEPARTMENT OF HOUSING AND URBAN AFFAIRS HAD SAID EARLIER THE EAGERLY AWAITED SECURITIES PROBABLY WOULD BE READY BY THE BEGINNING OF JANUARY BUT ROBERT KALISH EXECUTIVE VICE PRESIDENT OF GINNIE MAE SAID THE DATE HAD SLIPPED A BIT BECAUSE OF EXTENSIVE PROCEDURES REQUIRED IN CHOOSING TWO IMPORTANT CONTRACTORS FOR THE PROGRAM A FINANCIAL ADVISER AND A LEGAL ADVISER THE ORGANIZATION IS SOLICITING BIDS FROM FIRMS INTERESTED IN THE JOBS AND IS EXPECTED TO MAKE ITS CHOICES BY YEAR END MR KALISH SAID DEVELOPMENT OF THE PROGRAM IS MOVING ALONG QUITE WELL AND TOOK ISSUE WITH A JULY REPORT BY THE GENERAL ACCOUNTING OFFICE THE CONGRESSIONAL WATCHDOG AGENCY THAT SAID THE CORPORATION DIDN'T HAVE THE STAFF TO HANDLE ITS CURRENT WORKLOAD MUCH LESS THE NEW REMIC PROGRAM MR KALISH SAID GINNIE MAE WHICH HAS 68 STAFF MEMBERS IS ADDING FOUR STAFF MEMBERS THREE OF WHOM WILL WORK EXCLUSIVELY ON REMICS REMICS OR REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE CREATED BY THE 1986 TAXREFORM LAW INVESTORS BUY INTO ONE OR MORE CLASSES OF POOLS OF MORTGAGE LOAN OR MORTGAGE PASSTHROUGH SECURITIES EACH CLASS HAS A MATURITY AND CASHFLOW PATTERN AIMED AT MEETING SPECIFIC INVESTMENT OBJECTIVES UNDER THE EXISTING GINNIE MAE PROGRAM WHICH OFFERS SINGLECLASS MORTGAGEBACKED SECURITIES EACH SECURITY HAS THE SAME MATURITY AND OTHER CHARACTERISTICS MANY INVESTORS FOR ONE REASON OR ANOTHER AREN'T INTERESTED IN OUR SINGLECLASS PROGRAM MR KALISH SAID BUT THEY WILL BE INTERESTED IN REMICS WHICH ARE MORE MODERN AND CAN BE TAILORED TO INDIVIDUAL INVESTMENTS ANALYSTS SAY THE NEW REMICS ARE LIKELY TO RESULT IN LOWER INTEREST RATES ON FHA/VA MORTGAGES BECAUSE THEY WOULD INCREASE DEMAND FOR THE MORTGAGES IN THE FINANCIAL MARKETS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE FEDERAL HOME LOAN MORTGAGE CORP ALREADY ISSUE REMICS BUT GINNIE MAE RECEIVED AUTHORITY IN THE BUDGET BILL PASSED IN AUGUST GINNIE MAE WAS CREATED 25 YEARS AGO TODAY TO CREATE A SECONDARY MARKET FOR GOVERNMENTINSURED MORTGAGE LOANS THROUGH ITS MORTGAGESECURITY PROGRAM GINNIE MAE GUARANTEES TIMELY PAYMENT ON SECURITIES ISSUED BY PRIVATE INSTITUTIONS AND BACKED BY POOLS OF FEDERALLY INSURED OR GUARANTEED MORTGAGE LOANS 9310010161 931001 ECONOMY CLINTON ORDERS NEW REGULATORY PROCESS IN EFFORT TO REDUCE INFLUENCEPEDDLING BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON ORDERED A BROAD REVAMPING OF THE WAY THE FEDERAL GOVERNMENT ISSUES REGULATIONS A STEP THAT ATTEMPTS TO REDUCE INFLUENCEPEDDLING AND CARVES OUT A BIG ROLE FOR VICE PRESIDENT AL GORE THE EXECUTIVE ORDER WOULD REVERSE SEVERAL OF THE CONTROVERSIAL PRACTICES OF FORMER VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL WHICH HAD THE GOAL OF REDUCING REGULATION ON BUSINESS AND SOMETIMES HELPED POWERFUL LOBBIES REVERSE OR WATER DOWN REGULATIONS THEY DIDN'T LIKE THE COMPETITIVENESS COUNCIL QUIETLY SELECTED RULES FOR VICE PRESIDENTIAL REVIEW AND TRIED TO KEEP ITS ROLE SECRET UNDER THE NEW ORDER VICE PRESIDENT GORE COULD INTERVENE ONLY AT THE REQUEST OF THE HEAD OF AN ADMINISTRATIVE AGENCY OR THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET NOT AT THE REQUEST OF A PRIVATE GROUP THAT'S EXPECTED TO HAPPEN ABOUT A HALFDOZEN TIMES A YEAR IN THOSE CASES PRIVATE PARTIES THAT WANT TO DISCUSS THE PROCEEDINGS ARE SUPPOSED TO FILE WRITTEN COMMENTS WHICH WILL BE MADE PUBLIC THE DAYS OF BACKDOOR ACCESS TO UNDERMINING THE REGULATORY PROCESS IS OVER MR CLINTON SAID BEFORE A CABINET MEETING WHEN HE SIGNED THE REGULATORY ORDER BUT THE NEW ORDER DOESN'T REQUIRE COMPLETE DISCLOSURE OF THE VICE PRESIDENT'S ACTIVITIES FOR INSTANCE HIS COMMUNICATIONS WITH THE WHITE HOUSE'S OFFICE OF INFORMATION AND REGULATORY AFFAIRS WHICH OVERSEES REGULATION WON'T BE PLACED ON THE RECORD HOWEVER THE REGULATORY OFFICE WILL NOTE ON ITS PUBLIC RECORD WHEN THE VICE PRESIDENT OR PRESIDENT DECIDES TO INTERVENE IN A REGULATORY PROCEEDING A CLOSELY GUARDED SECRET DURING THE QUAYLE YEARS ANY CHANGES MADE TO REGULATIONS DURING THE OIRA REVIEW WILL ALSO BE MADE PUBLIC IN ADDITION MR GORE WILL PLAY AN IMPORTANT ROLE AT THE EARLY STAGES OF REGULATION HE WILL CONVENE AN ANNUAL MEETING OF AGENCY HEADS TO SET CLINTON ADMINISTRATION REGULATORY PRIORITIES AND HIS STAFF WILL BE PART OF A WORKING GROUP THAT REVIEWS REGULATORY ISSUES THE EXECUTIVE ORDER WON PRAISE FROM BUSINESS AND ENVIRONMENTAL GROUPS THAT HAVE LONG BEEN AT WAR OVER REGULATORY ISSUES ALTHOUGH THE TWO SIDES FOUND DIFFERENT PARTS OF THE ORDER TO LAUD THE US CHAMBER OF COMMERCE WHICH CALLED THE ORDER FAIR AND BALANCED PRAISED REQUIREMENTS THAT AGENCIES ANALYZE THE COSTS AND BENEFITS OF REGULATIONS BEFORE THEY ISSUED NEW PROPOSALS MOREOVER AGENCIES WILL HAVE TO WEIGH SOME ADDITIONAL CRITERIA SUCH AS THE BURDEN ON BUSINESS BEFORE DECIDING TO REGULATE ON THE OTHER HAND PUBLIC CITIZEN A CONSUMER ADVOCACY GROUP LIKED THE PUBLICREPORTING PROVISIONS THE ORDER SWEEPS AWAY THE SECRECY THAT PREVIOUSLY CLOAKED THE REVIEW PROCESS AND TURNED THE WHITE HOUSE INTO THE PRIVATE PRESERVE OF WELLHEELED CORPORATE LOBBYISTS 9310010160 931001 MARKETING & MEDIA AMERICAN EXPRESS SAID TO WIN CONTEST FOR US CONTRACT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO WON A HOTLY CONTESTED TRAVELSERVICES CONTRACT FOR THE FEDERAL GOVERNMENT STEALING THE BUSINESS FROM RIVAL DINERS CLUB INC INDUSTRY OFFICIALS SAID THE GENERAL SERVICES ADMINISTRATION CONTRACT WHICH COVERS 25 BILLION IN TRAVELRELATED BILLINGS A YEAR AND MORE THAN 900000 CARD HOLDERS IN THE FEDERAL GOVERNMENT WOULD BE A FEATHER IN THE CAP OF AMERICAN EXPRESS THE CONTRACT WOULD SOLIDIFY ITS DOMINANCE IN THE CORPORATE CARD MARKET EVEN THOUGH THE AGREEMENT IS NOT EXPECTED TO BE A BIG MONEYWINNER THE LOSS WOULD BE A BIG BLOW TO DINERS CLUB A CITICORP SUBSIDIARY THE GSA REPRESENTED AN ESTIMATED 23 OF THE CARD COMPANY'S US VOLUME IT'S A REAL SHOT IN THE ARM FOR AMERICAN EXPRESS SAID DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A CREDITCARD NEWSLETTER BY THE SAME TOKEN THIS CONTRACT MEANS EVERYTHING FOR DINERS CLUB HE SAID A SPOKESMAN FOR THE GSA WOULD SAY ONLY THAT THE WINNER WOULD BE ANNOUNCED TODAY A SPOKESMAN FOR AMERICAN EXPRESS REFERRED CALLS TO THE GSA AND A SPOKESWOMAN FOR DINERS CLUB DECLINED TO COMMENT THE GSA THE ARM OF THE FEDERAL GOVERNMENT THAT ADMINISTERS PURCHASES OF EVERYTHING FROM BUILDINGS TO EQUIPMENT REQUESTED THAT CREDITCARD COMPANIES BID ON THE CONTRACT BECAUSE THE EXISTING FIVEYEAR CONTRACT EXPIRES SHORTLY DINERS CLUB HAS HAD THE ACCOUNT SINCE OCTOBER 1983 WHILE THE CONTRACT IS FOR ONE YEAR IT INCLUDES FOUR ONEYEAR RENEWALS GIVING THE CONTRACT POTENTIAL BILLINGS OF AT LEAST 10 BILLION BOTH AMERICAN EXPRESS AND DINERS CLUB WERE KNOWN TO HAVE BEEN COMPETING AGGRESSIVELY FOR THE CONTRACT GSA IS BELIEVED TO HAVE CHOSEN AMERICAN EXPRESS BECAUSE OF ITS SUPERIOR FINANCIAL SYSTEMS IN TRACKING TRAVEL AND ENTERTAINMENT PURCHASES CREDITCARD ANALYSTS SAY BANKS THAT ISSUE VISA AND MASTERCARD DROPPED OUT BECAUSE THE GSA DOESN'T CARRY OUTSTANDING BALANCES AND THEREFORE DOESN'T PAY INTEREST IN FACT CREDITCARD ANALYSTS SAY AMERICAN EXPRESS WILL BE LUCKY TO BREAK EVEN ON THE CONTRACT AT FIRST GIVEN THE GOVERNMENT'S STRINGENT TERMS AND CONDITIONS BUT IT PUTS NEARLY ONE MILLION CARDS IN GOVERNMENT EMPLOYEES' HANDS AND COULD EVENTUALLY BE A PROFIT CENTER IF AMERICAN EXPRESS CAN BOOST THE NUMBER OF GOVERNMENT CARD HOLDERS WHO ACTUALLY USE THEIR CARDS CURRENTLY AN ESTIMATED ONETHIRD OF THE GOVERNMENT CARD HOLDERS USE THEIR DINERS CLUB CARD DINERS CLUB IS NOT ACCEPTED AT AS MANY MERCHANTS AS AMERICAN EXPRESS IF YOU GET THE CONTRACT TODAY WORRY ABOUT MAKING MONEY TOMORROW SAID MR ROBERTSON 9310010159 931001 WHO'S NEWS GILLETTE CO GILLETTE CO BOSTON JACQUES LAGARDE WAS NAMED EXECUTIVE VICE PRESIDENT OF THE DIVERSIFIED GROUP ONE OF THE COMPANY'S FOUR MAJOR OPERATING GROUPS MR LAGARDE WAS CHAIRMAN OF THE MANAGEMENT BOARD OF GILLETTE'S BRAUN AG UNIT IN KRONBERG GERMANY SINCE 1990 HE SUCCEEDS LORNE R WAXLAX WHO WILL RETIRE AT THE END OF THE YEAR GILLETTE ALSO NAMED ARCHIBALD LIVIS TO SUCCEED MR LAGARDE AS CHAIRMAN OF BRAUN'S BOARD OF MANAGEMENT MR LIVIS HAD BEEN SERVING AS BRAUN'S DEPUTY CHAIRMAN OF BUSINESS MANAGEMENT AND GEOGRAPHIC OPERATIONS BOTH APPOINTMENTS ARE EFFECTIVE TODAY GILLETTE MAKES PERSONALCARE PRODUCTS ITS DIVERSIFED GROUP INCLUDES THE BRAUN AG ORALB LABS AND JAFRA COSMETICS UNITS 9310010158 931001 AGREEMENT TO LET COMMUNITY BANKS SELL MUTUAL FUNDS BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK BECAUSE OF AN AGREEMENT DUE TO BE SIGNED BY THIS WEEKEND SOME OF THE NATION'S SMALLEST BANKS WILL SOON BE ABLE TO JOIN THE MUTUALFUND BUSINESS THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA AND MASSACHUSETTS FINANCIAL SERVICES INC A UNIT OF SUN LIFE ASSURANCE CO OF CANADA ARE PUTTING THE FINISHING TOUCHES ON CONTRACTS THAT WILL ALLOW 5800 COMMUNITY BANKS TO SELL MUTUAL FUNDS MANAGED BY MASSACHUSETTS FINANCIAL MOST OF THE BANKS ARE OWNEROPERATED WITH AVERAGE ASSETS OF 40 MILLION BANKS WILL BE ABLE TO OPT FOR ONE OF THREE PACKAGES OR TIERS THROUGH WHICH TO SELL THE MASSACHUSETTS FINANCIAL FAMILY OF FUNDS ALL OF WHICH CHARGE INVESTORS LOADS OR SALES FEES TIER THREE GIVES THE BANK AN ONLOCATION SALES REPRESENTATIVE AND COMPUTER SOFTWARE THAT ALLOWS THE REPRESENTATIVE TO BUY SHARES OF A FUND FOR A CUSTOMER TIER TWO BUYS THE BANK SOFTWARE THAT ITS PERSONNEL CAN USE TO WALK CUSTOMERS THROUGH QUESTIONS AND ANSWERS ABOUT FUND INVESTING AFTER WHICH A BANK REPRESENTATIVE MUST CALL A MASSACHUSETTS FINANCIAL REP WHO CAN SELL THE CUSTOMER SHARES UNDER TIER ONE THE BANK SIMPLY GETS A DISPLAY RACK WITH FUND LITERATURE AFTER FILLING OUT A FORM THE CUSTOMER CAN CALL A MASSACHUSETTS FINANCIAL REPRESENTATIVE TOLLFREE BANKS WILL PAY MASSACHUSETTS FINANCIAL 1000 TO 2000 IN UPFRONT COSTS TO BRING THE FUNDS INTO THEIR OPERATIONS SAYS GARY TEAGNO PRESIDENT OF THE IBAA COMMUNITY BANKING NETWORK A FORPROFIT SUBSIDIARY OF THE INDEPENDENT BANKERS ASSOCIATION SO FAR MORE THAN 100 BANKS HAVE CALLED THE IBAA TO ASK ABOUT THE MASSACHUSETTS FINANCIAL FUNDS MR TEAGNO SAYS REGARDLESS OF WHICH PLAN IT OPTS FOR A BANK WILL MAKE ITS MONEY BY KEEPING A PORTION OF THE LOAD FOR EACH FUND SOLD SOME CRITICS SAY THAT THE SMALLEST OF SMALL BANKS WILL HAVE TO OPT FOR TIER ONE AND THAT WON'T DO MORE THAN MAKE THOSE BANKS ALSORANS IN A 18 TRILLION INDUSTRY THE THREAT REMAINS THEY SAY THAT DEPOSITORS' MONEY WILL LEAVE SUCH A BANK TO FIND MORE HANDSON FUND MANAGEMENT THERE ARE ALSO CONCERNS THAT THE MASSACHUSETTS FINANCIAL PROGRAM'S FULLSERVICE OPTIONS MAY NOT PROVIDE SMALL BANKS WITH ENOUGH TRAINING OR MEANS FOR AGGRESSIVE MARKETING THE IBAA'S MR TEAGNO SAYS MOST SMALL BANKS WOULDN'T WANT TO ENGAGE IN MASSIVE MARKETING BLITZES FOR FUNDS BECAUSE THAT WOULD GO AGAINST THEIR IMAGE I THINK IT'S IMPORTANT THAT THE FUNDS THAT SMALL BANKS ARE OFFERING ARE VIEWED AS PART OF THE BANKS' ARRAY OF FINANCIAL PRODUCTS HE SAYS 9310010157 931001 TECHNOLOGY & HEALTH IBM HAS TROUBLE FILLING PC ORDERS WITH SALES UP 35 FROM A YEAR AGO BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IBM PERSONAL COMPUTER CO IS HAVING TROUBLE GETTING IT RIGHT LAST YEAR THE INTERNATIONAL BUSINESS MACHINES CORP UNIT WAS FARING SO BADLY THAT EVEN SOME INSIDERS WORRIED THAT IBM WOULD SCRAP THE BUSINESS NOW IBM'S PERSONAL COMPUTER SALES ARE UP 35 FROM YEARAGO LEVELS AND ORDERS ARE SO STRONG FOR SUCH ENTRIES AS THE THINKPAD NOTEBOOK COMPUTER THAT IBM WON'T BE ABLE TO FILL ALL OF THEM UNTIL THE END OF NEXT YEAR IBM OFFICIALS CONCEDE THAT MANY CUSTOMERS SIMPLY WON'T WAIT AND WILL INSTEAD TURN TO OTHER BRANDS THOUGH THE SHORTAGE PROBLEM IS AN ENVIABLE ONE COMPARED WITH IBM'S TROUBLE A YEAR AGO IT WORRIES ROBERT CORRIGAN PRESIDENT OF IBM'S PC UNIT YOU LOSE LOYALTY HE SAYS WE HAVE CAUSED PROBLEMS WITH A LOT OF CUSTOMERS OVER THE FACT WE AREN'T ABLE TO PROVIDE THE LEVEL OF SUPPLY AND DELIVERY THAT THEY SEEM TO WANT WE'VE UNLEASHED SOMETHING THAT'S RAISED THE LEVEL OF EXPECTATIONS SOLVING THE SUPPLY PROBLEM IS KEY TO CLINCHING A REBOUND IN THE PC MARKET FOR IBM ON MONDAY IBM IS EXPECTED TO UNVEIL SOME 30 NEW MODELS IN ITS PS/1 LINE OF COMPUTERS SOLD AT DEPARTMENT STORES MASSMERCHANDISERS AND ELECTRONICS OUTLETS PRICED IN THE 1000 TO 2400 RANGE THE NEW LINE WILL INCLUDE NEW FEATURES THAT BORDER ON THE IDIOTPROOF AS WELL AS A SOUPEDUP MULTIMEDIA MODEL THAT MAY SELL FOR LESS THAN 1700 AS IBM REFRESHES ITS ENTIRE PC LINE THIS FALL PROFIT MARGINS ARE TIGHT ACROSS THE INDUSTRY AND IBM CAN'T AFFORD TO GUESS WRONG ON EITHER SIDE OF THE DEMAND FORMULA GUNSHY FROM ITS PAST FAILURES AND WARY OF REVVING UP SUPPLY TOO MUCH IBM MAY FACE A DIFFICULT TIME IBM SAW GOOD GROWTH IN COMPUTER SALES LAST YEAR BUT IT FALLS SHORT OF WHAT THEY COULD HAVE SOLD HAD THEY BETTER PLANNED SAYS RICHARD ZWETCHKENBAUM OF INTERNATIONAL DATA CORP A MARKET RESEARCH FIRM HE ESTIMATES THAT IBM'S PC SALES WILL RISE 35 THIS YEAR TO 43 MILLION UNITS WORLDWIDE PUSHING ITS UNIT SHARE UP ALMOST TWO POINTS TO 126 THE NO 1 POSITION IBM EXECUTIVES PEG THE INCREASE AT CLOSER TO 40 AND SAY THE INCREASE WOULD HAVE BEEN 50 HAD THEY BEEN ABLE TO FILL ALL THE DEMAND THE BIGGEST CONTRIBUTORS TO THE GROWTH HAVE BEEN THE VALUEPOINT LINE AND THE THINKPAD SERIES JUST ONE YEAR AFTER ITS INTRODUCTION THE VALUEPOINT LINE WHICH COMPETES WITH INDUSTRYSTANDARD CLONES NOW ACCOUNTS FOR ABOUT 28 OF IBM'S PC SALES VALUEPOINT HAD ITS OWN SUPPLY PROBLEMS WHEN IT WAS INTRODUCED AND IBM ONLY NOW IS CLOSE TO CLOSING THE GAP MR CORRIGAN SAID SOME MODELS IN IBM'S TOPOFTHELINE PS/2 SERIES REMAIN IN SHORT SUPPLY HOWEVER AND THE SHORTAGE IS THE WORST BY FAR IN THINKPADS INTERNATIONAL DATA CORP ESTIMATES IBM HAS ALREADY SOLD OVER 500000 THINKPAD MODELS SINCE THEY WERE INTRODUCED LATE LAST YEAR THE BACKLOG OF UNFILLED ORDERS NOW STANDS AT ABOUT 80000 FORCING IBM TO DELETE THE PRODUCT OFFERING FROM ITS CATALOG THE MAJOR SUPPLY PROBLEM HAS BEEN THE CHALLENGE OF PRODUCING ADEQUATE NUMBERS OF ACTIVEMATRIX COLOR SCREENS WHICH ARE MADE IN A SINGLE PLANT THE PLANT IS BEING EXPANDED TO PRODUCE MORE BY EARLY NEXT YEAR AND IBM HAS INTRODUCED A NEW MODEL USING A DIFFERENT SCREEN TO HELP FILL THE SUPPLY GAP MEANWHILE IBM HOPES TO BOOST ITS DESKTOP SALES WITH SIGNIFICANT ENHANCEMENTS TO THE PS/1 LINE AIMED AT LESS SOPHISTICATED USERS AND SOLD MOSTLY AT 6000 NONCOMPUTER STORES THE PS/1 LINE HAS MORE THAN TRIPLED IBM'S SHARE OF PC SALES IN SUCH STORES TO 19 FROM A YEAR AGO ACCORDING TO INDUSTRY ESTIMATES THE NEW MODELS WILL INCLUDE A NEW FEATURE KNOWN AS RAPID RESUME WHICH WILL LET USERS SIMPLY TURN OFF THEIR PCS WITHOUT HAVING TO STORE THE FILES THEY HAVE OPENED AND START UP AT THE SAME POINT THE NEXT DAY A MULTIMEDIA MODEL WILL INCLUDE A COMPACTDISK DRIVE SOUND FEATURES SPEAKERS AND 800 IN FREE SOFTWARE FOR PRICES EXPECTED TO FALL BELOW 1700 THE LINE ALSO WILL CLAIM LOWPOWERCONSUMPTION FEATURES FOR ECOLOGICALLYMINDED CONSUMERS 9310010156 931001 CLINTON WEIGHS PRIVATE CONTROL OF INTERSTATES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS WILLING TO PURSUE PRIVATELY CONTROLLED INTERSTATE HIGHWAYS IF PUBLIC FUNDING FALLS SHORT THE GOVERNMENT'S TOP HIGHWAY OFFICIAL SAID WE'VE GOT TO GET THE PRIVATE SECTOR INVOLVED TO A GREATER EXTENT IN FINANCING HIGHWAYS RODNEY SLATER DIRECTOR OF THE FEDERAL HIGHWAY ADMINISTRATION TOLD REPORTERS HE SAID THAT COULD INCLUDE ALLOWING PRIVATE COMPANIES TO RUN PARTS OF AN EXPANDED INTERSTATE HIGHWAY SYSTEM COLLECTING TOLLS AND HANDLING MAINTENANCE CONGRESS HAS ORDERED THE FEDERAL HIGHWAY ADMINISTRATION TO PREPARE A PLAN FOR ABOUT 155000 MILES OF NEW HIGHWAY BUT FUNDING FOR THIS NATIONAL HIGHWAY SYSTEM IS STILL UNCERTAIN THE HIGHWAY TRUST FUND IS FED BY A FEDERAL GASOLINE TAX BUT WHEN CONGRESS INCREASED THE TAX THIS YEAR BY 43 CENTS A GALLON IT EARMARKED THE FUNDS FOR DEFICIT REDUCTION ALSO MR SLATER SAID GASOLINETAX REVENUES WILL BE LIMITED AS THE ADMINISTRATION PUSHES FOR MORE FUELEFFICIENT CARS CONGRESS MADE IT EASIER FOR PRIVATE GROUPS TO BUILD HIGHWAYS WITH A 1991 LAW AUTHORIZING FEDERAL FINANCIAL SUPPORT FOR PRIVATE TOLL ROADS A PRIVATE INVESTMENT GROUP AND THE STATE OF VIRGINIA BROKE GROUND THIS WEEK ON A 14MILE TOLL ROAD AT WASHINGTON DULLES INTERNATIONAL AIRPORT AND SEVERAL SIMILAR PROJECTS ARE UNDER WAY IN CALIFORNIA BUT LONG HIGHWAYS INCLUDING ONE THAT HAS BEEN PROPOSED BETWEEN CHICAGO AND KANSAS CITY HAVE HAD DIFFICULTY GETTING STARTED IN ALL 12 BILLION OF PRIVATE ROAD PROJECTS HAVE BEEN FINANCED THIS YEAR AND ANOTHER 30 BILLION OF PROJECTS ARE IN VARIOUS STAGES OF PLANNING ACCORDING TO THE AMERICAN ROAD AND TRANSPORTATION BUILDERS ASSOCIATION IN HOPES OF ENCOURAGING PENSIONFUND INVESTMENT IN SUCH HIGHWAYS ROAD BUILDERS ARE SEEKING SOME CHANGES IN THE 1991 LAW INCLUDING RELAXING RESTRICTIONS ON THE USE OF TOLL RECEIPTS AND LETTING STATES RATHER THAN THE FEDERAL GOVERNMENT SET THE RATE OF RETURN FOR INVESTORS 9310010155 931001 TECHNOLOGY & HEALTH AMA VOWS FIGHT TO REVISE CLINTON'S HEALTHCARE PLAN WASHINGTON REUTER THE AMERICAN MEDICAL ASSOCIATION THE POWERFUL LOBBYING ARM FOR AMERICA'S DOCTORS YESTERDAY VOWED AN ALLOUT DRIVE TO DRASTICALLY REVISE PRESIDENT CLINTON'S HEALTHCARE PLAN AT A TWODAY CONFERENCE HERE AMA OFFICIALS SAID THEY COULD AGREE WITH MANY BROAD ASPECTS OF THE CLINTON PLAN BUT OPPOSED MANY DETAILS INCLUDING INSURANCEPREMIUM CEILINGS AND REDUCTIONS IN REIMBURSEMENTS UNDER THE EXISTING MEDICARE HEALTH PLAN FOR THE ELDERLY THE OFFICIALS SERVED NOTICE THAT THEY PLANNED TO FIGHT FOR CHANGES THROUGH THE ORGANIZATION'S VAST NETWORK OF DOCTORS THE AMA IS ONE OF THE MOST INFLUENTIAL ORGANIZATIONS IN THE NATION AND IN THE PAST HAS EITHER KILLED OR RADICALLY REVISED PENDING HEALTHCARE MEASURES IN CONGRESS IT HAS 290000 MEMBERS OR 43 OF THE NATION'S DOCTORS IN THE 1970S THE AMA REPRESENTED 70 OF DOCTORS HE US BUT MEMBERSHIP HAS DECLINED AS SPECIALIST GROUPS HAVE BRANCHED OUT ON THEIR OWN THE AMA SAID A LETTER WAS MAILED TWO DAYS AGO TO 710000 DOCTORS AND MEDICAL STUDENTS TO ENLIST THEM IN LOBBYING CONGRESS WHICH HAS JUST STARTED WHAT PROMISES TO BE A LENGTHY DEBATE THE LETTER FROM SENIOR AMA OFFICIALS PRAISED SOME CLINTON INITIATIVES AS GOOD FOR PATIENTS INCLUDING HIS PROPOSAL FOR UNIVERSAL HEALTH COVERAGE TO INCLUDE THE ESTIMATED 37 MILLION AMERICANS WITHOUT HEALTH INURANCE BUT THE OFFICIALS EXPRESSED SERIOUS RESERVATIONS ABOUT PROPOSALS THAT THEY SAID WOULD LIMIT PATIENT AND DOCTOR CHOICES UNDERMINE QUALITY OF MEDICAL CARE AND LEAD TO FEDERAL CONTROLS OVER THE MEDICAL PROFESSION ADDRESSING THE AMA LEGISLATIVE CONFERENCE YESTERDAY SENATE REPUBLICAN LEADER BOB DOLE R KAN SCOLDED BOTH THE CLINTON PLAN AND THE AMA FOR ENDORSING REQUIREMENTS THAT ALL EMPLOYERS COVER THEIR EMPLOYEES WITH SOME FORM OF HEALTH INSURANCE HE SAID THOUSANDS OF JOBS WOULD BE LOST IF SMALL BUSINESSES ARE COMPELLED TO FINANCE INSURANCE SEN DOLE PROMISED TO WORK WITH MR CLINTON AND SO TOLD HEALTH SPOKESWOMAN HILLARY RODHAM CLINTON AT A SENATE FINANCE COMMITTEE HEARING LATER BUT HE CAUTIONED DURING THE AMA MEETING THAT IT WOULD BE FOLLY TO RUSH INTO ANY MAJOR HEALTHCARE CHANGES IF MINORITY REPUBLICANS ARE GOING TO PLAY A ROLE IN HEALTH CARE SEN DOLE SAID THERE MUST BE A RESPONSIBLE ALTERNATIVE TO THE CLINTON PROPOSAL THAT CAN ATTRACT DEMOCRATS FOR A COMPROMISE HEALTHCARE PACKAGE 9310010154 931001 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMYLIN PHARMACEUTICALS INC AN OFFERING OF TWO MILLION COMMON SHARES VIA MORGAN STANLEY & CO CASTLE ENERGY CORP AN OFFERING OF 11250000 COMMON SHARES VIA KIDDER PEABODY & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP HOLLINGER INC AN OFFERING OF 150 MILLION OF LIQUID YIELD OPTION NOTES DUE 2013 IN PLACE OF A PREVIOUS OFFERING OF 100 MILLION OF LYONS VIA MERRILL LYNCH & CO LTX CORP AN OFFERING OF 5250000 COMMON SHARES VIA KIDDER PEABODY & CO AND NEEDHAM & CO 9310010153 931001 DUTYFREE STATUS FOR RUSSIA WASHINGTON PRESIDENT CLINTON TOLD CONGRESS THAT HE INTENDS TO ADD RUSSIA TO THE LIST OF DEVELOPING COUNTRIES THAT ENJOY DUTYFREE STATUS ON A VARIETY OF EXPORTS COVERED UNDER THE GENERALIZED SYSTEM OF PREFERENCES THAT PROGRAM OFFERS DUTYFREE ACCESS TO US MARKETS AS AUTHORIZED BY THE TRADE LAW OF 1974 IN THE FIRST SIX MONTHS OF THIS YEAR RUSSIA EXPORTED 82 MILLION OF GOODS THAT WOULD HAVE BEEN ELIGIBLE FOR THE PREFERENTIAL TREATMENT IN A STATEMENT MR CLINTON WROTE THAT HE WANTS TO EXTEND THE BENEFITS IN LIGHT OF RUSSIA'S LEVEL OF DEVELOPMENT AND INITIATION OF ECONOMIC REFORMS 9310010152 931001 POLITICS & POLICY TO FIND OUT WHETHER CLINTON NUMBERS ADD UP IN HEALTH PLAN ASK PEOPLE WHO CRUNCHED THEM BY DAVID WESSEL AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON RICHARD HELMS WINCED AS HE LISTENED TO ONE PARTICULAR PASSAGE IN PRESIDENT CLINTON'S HEALTH SPEECH TO CONGRESS LAST WEEK SO THEN WE GAVE THESE NUMBERS TO ACTUARIES FOR MAJOR ACCOUNTING FIRMS AND MAJOR FORTUNE 500 COMPANIES WHO HAVE NO STAKE IN THIS OTHER THAN TO SEE THAT OUR EFFORTS SUCCEED THE PRESIDENT SAID SO I BELIEVE OUR NUMBERS ARE GOOD AND ACHIEVABLE MR HELMS AN EXECUTIVE AT PRINCIPAL FINANCIAL GROUP A DES MOINES INSURER IS ONE OF THOSE ACTUARIES IF IT GAVE SOMEONE THE IMPRESSION THAT WE LOOKED AT ALL OF THE NUMBERS IN FINE DETAIL AND SIGNED OFF ON THEM HE SAYS IT WAS POTENTIALLY MISLEADING MR HELMS AND OTHERS ON THE SEVENMAN TEAM OF ACTUARIES CONSULTED BY THE WHITE HOUSE AGREE THAT THE ADMINISTRATION PUT THE PROPER PRICE AN AVERAGE OF 4200 A FAMILY ON THE INSURANCE PACKAGE THE PRESIDENT WANTS TO GUARANTEE ALL AMERICANS AND THAT THE METHODS USED TO CALCULATE GOVERNMENT SUBSIDIES ARE SOUND BUT THEY DON'T ALL ACCEPT THAT MR CLINTON CAN SQUEEZE AS MUCH WASTE AND INEFFICIENCY OUT OF THE HEALTH SYSTEM AS SWIFTLY AS HE ENVISIONS WITHOUT DISRUPTING THE MARKET OR UNDERMINING THE QUALITY OF CARE AN ASSUMPTION THAT IS CRUCIAL TO MANY OF THE NUMBERS IN THE PLAN THAT'S THE REAL QUESTION IS IT MR CLINTON'S PROPOSED CAP ON SPENDING SO TIGHT THAT YOU COULDN'T MAKE IT THAT'S HARD TO SAY SAYS RICHARD OSTUW CHIEF ACTUARY AT TOWERS PERRIN WHO LED THE OUTSIDE TEAM THERE WOULD BE SOME PLACES WHERE THERE WOULD BE PROBLEMS BUT I DON'T KNOW IF THAT'S 1 OF THE POPULATION OR 50 OF THE POPULATION IRA MAGAZINER DESIGNER OF THE HEALTH PLAN SAYS IN AN INTERVIEW THAT THE ACTUARIES WEREN'T SUPPOSED TO JUDGE WHETHER THE PROPOSED CAPS ANTICIPATE SQUEEZING SAVINGS OUT OF THE SYSTEM TOO RAPIDLY BUT THAT OTHER OUTSIDE EXPERTS DID YET MR CLINTON'S ECONOMIC ADVISER ROBERT RUBIN SAID MUCH THE SAME THING AS THE PRESIDENT WHEN HE ASSURED THE PRESS LAST WEEK THAT ENORMOUS NUMBERS OF GOVERNMENT EXPERTS AND OUTSIDE ACTUARIES AND OUTSIDE ACCOUNTANTS HAVE CONCLUDED THAT THESE KIND OF SAVINGS CAN BE ACHIEVED IN THESE KIND OF TIME PERIODS IN AN INTERVIEW YESTERDAY MR RUBIN SAID I JUST SPOKE TO IRA MAGAZINER A FEW MINUTES AGO AND HE RECONFIRMED THAT OUTSIDE EXPERTS HAVE CHECKED THE SAVINGS AND FOUND THEM TO BE REASONABLE IF CONGRESS DIFFERS HE ADDED AND IT'LL OBVIOUSLY HAVE A THOROUGH PROCESS OF ITS OWN THEN WE'LL HAVE TO WORK WITH CONGRESS TO ADJUST THE PROGRAMS ACCORDINGLY THIS IS NO SMALL ISSUE IF THE GOVERNMENT PROMISES BENEFITS BUT SAVINGS DON'T MATERIALIZE TAXPAYERS ARE ON THE HOOK DEBORAH STEELMAN A HEALTHINDUSTRY LOBBYIST WHO WORKED IN RONALD REAGAN'S BUDGET OFFICE CALLS IT THE FLIP SIDE OF THE DAVID STOCKMAN DEFICIT TRAP MR STOCKMAN MR REAGAN'S BUDGET DIRECTOR CUT TAXES AND FIGURED SPENDING CUTS WOULD FOLLOW THEY DIDN'T MR CLINTON SHE SAYS WOULD ENACT POPULAR BENEFITS NOW AND MUST BE COUNTING ON TAX INCREASES LATER MR CLINTON INSISTS BROAD TAXES AREN'T NEEDED IF COMPETITION DOESN'T KEEP HEALTHCARE SPENDING DOWN HE SAYS THEN THE SPENDING CAPS WRITTEN INTO LAW WILL FOR THE CLINTON PLANNERS EVEN GETTING THE MATH RIGHT WASN'T SIMPLE HEALTHCARE NUMBERS ARE HUGE EVEN BY GOVERNMENT STANDARDS THE NEW MEDICARE DRUG BENEFIT BY ITSELF IS SAID TO COST 14 BILLION A YEAR DOUBLE THE ENVIRONMENTAL PROTECTION AGENCY'S ENTIRE BUDGET THE NUMBERS ARE SO BIG THAT ADMINISTRATION OFFICIALS CALL SOME DISAGREEMENTS OVER 2 BILLION A YEAR ROUNDING ERRORS DAVID ELLWOOD MR CLINTON'S WELFAREREFORM EXPERT ONCE JOKED THAT HE WOULD GLADLY ACCEPT AS THE ENTIRE BUDGET FOR WELFARE REFORM THE DIFFERENCE BETWEEN COST ESTIMATES OF ANY PART OF THE HEALTH PLAN MADE ON TWO DIFFERENT DAYS BUT THE ISSUE ISN'T WHETHER THE NUMBERS ADD UP OF COURSE THEY ADD UP THEY'RE NOT DOPES SAYS THEODORE MARMOR A PROFESSOR AT YALE'S SCHOOL OF ORGANIZATION AND MANAGEMENT THE CRITICAL QUESTION IS WHAT ASSUMPTIONS DO YOU MAKE TO MAKE THE NUMBERS ADD UP IN WASHINGTON NUMBERS OFTEN DRIVE POLICY A POINT THAT WASN'T LOST ON MR MAGAZINER EARLY ON HE TOOK CONTROL OF THE NUMBERS HE BYPASSED A LAYER OF VETERAN GOVERNMENT NUMBERCRUNCHERS BY ASSEMB REPORTED PRIMARILY TO HIM AND ECONOMIST KENNETH THORPE AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES HE USED PRIVATE ECONOMIC MODELS TO CHALLENGE AND SOMETIMES CHANGE GOVERNMENT ESTIMATES ONLY NOW AFTER ALL THE MAJOR DECISIONS HAVE BEEN MADE ARE THE SENIOR ANALYSTS AT THE WHITE HOUSE BUDGET OFFICE AND TREASURY VETTING THE NUMBERS AS MR MAGAZINER PUTS IT THE BUDGET OFFICE RECENTLY SENT MR MAGAZINER 30 PAGES OF QUESTIONS MR MAGAZINER'S STAFF HELD TEDIOUS MEETINGS TO FIGURE OUT WHY ESTIMATES FROM ONE ARM OF HHS THE HEALTH CARE FINANCING ADMINISTRATION WERE SO DIFFERENT FROM THOSE AT ANOTHER THE AGENCY FOR HEALTH CARE POLICY RESEARCH ONE CONFERENCE CALL AMONG NUMBERCRUNCHERS DURING THE SPRING BEGAN AT 9 AM AND LASTED UNTIL 5 PM WITH AN HOUR OFF FOR LUNCH AND COVERED ONLY THREE NARROW TOPICS AFTERWARD MR MAGAZINER'S AIDES MET WITH HIM FROM 6 PM TO 10 PM TO BRIEF HIM FOR THE QUANTITATIVE ANALYSIS TEAM AS IT WAS KNOWN THE RUB WAS THAT THE PLAN KEPT CHANGING CHANGING ANY ONE NUMBER CHANGED SCORES OF OTHERS DAVID CUTLER A WHITE HOUSE ECONOMIST AMONG THE INNERCORE OF NUMBERCRUNCHERS LIKENS THE ENDEAVOR TO A HUGE RUBIK'S CUBE TAKE THE PROJECTION IN THE LEAKED DRAFT OF THE PLAN THAT THE GOVERNMENT WILL COLLECT 51 BILLION IN TAXES OVER FIVE YEARS BECAUSE COMPANIES WILL SPEND LESS ON HEALTH CARE THE TREASURY ASSUMES THAT WHATEVER EMPLOYERS DON'T SPEND ON TAXFREE HEALTH CARE WILL BE GIVEN TO WORKERS IN TAXABLE CASH BUT THAT FIGURE WASN'T BASED ON ALL THE SAME PROJECTIONS AS THE REST OF THE DRAFT WHEN THE FINAL FIGURES ARE ISSUED LATER THIS MONTH THE ESTIMATE IS LIKELY TO BE SMALLER INSTEAD OF 51 IT MAY BE 41 OR 31 MR MAGAZINER SAYS EVEN THAT MULTIBILLIONDOLLAR ISSUE IS MINOR COMPARED WITH THE BIG ONE THE TERMS OF THE CAP ON PRIVATE INSURANCE PREMIUMS AND GOVERNMENT HEALTH SPENDING MR MAGAZINER ARGUES THAT THE ADVENT OF COMPETITION WILL BRING DOWN HEALTH SPENDING SO THE CAPS MAY NEVER BIND BUT BECAUSE OF THE WAY CONGRESSIONAL SCOREKEEPING WORKS THE CAPS DRIVE THE NUMBERS IF THEY WERE LOOSER THERE WOULD BE LESS MONEY TO SUBSIDIZE EMPLOYERS AND FAMILIES OR TO PAY FOR NEW MEDICARE BENEFITS ALLOW PRIVATE PREMIUMS AND PUBLIC HEALTH SPENDING TO GROW JUST ONE PERCENTAGE POINT FASTER THAN MR CLINTON'S PROPOSED CAPS PROVIDE AND PROJECTED FEDERAL SPENDING GOES UP BY ABOUT 5 BILLION IN 1997 AND ABOUT 13 BILLION IN 2000 WHILE A HOST OF HEALTHCARE EXPERTS QUESTION THE WISDOM OF IMPOSING SUCH STRICT CAPS AS QUICKLY AS MR CLINTON PROPOSES MR MAGAZINER HASN'T ANY DOUBTS WE DIDN'T SET THESE BUDGET CAPS BY STICKING OUR FINGER IN THE AIR HE SAYS HE OFFERS A LIST OF EXPERTS WHO BACK THE CLINTON APPROACH BUT SOME OF THEM RAISE QUESTIONS ABOUT THE CAPS PHIL NUDELMAN CHAIRMAN OF GROUP HEALTH COOPERATIVE OF PUGET SOUND CALLS THE PLAN REALISTIC AND AN EXCELLENT FOUNDATION BUT ADDS IN AN INTERVIEW THAT THE PRIVATESECTOR PREMIUM CAPS MAY BE A SLIGHT BIT AMBITIOUS URBAN INSTITUTE ECONOMIST STEPHEN ZUCKERMAN SAYS THAT THE INEFFICIENCIES ARE THERE BUT WONDERS WHETHER THE MACHINERY TO SQUEEZE THEM OUT CAN BE BUILT AS QUICKLY AS THE PLAN ANTICIPATES JOHN WENNBERG A DARTMOUTH PHYSICIANRESEARCHER IS SURE THAT THERE IS SUFFICIENT EXCESS CAPACITY SO PATIENTS DON'T HAVE TO WORRY ABOUT BEING HARMED BY THE CLINTON PLAN BUT SAYS HE DOESN'T HAVE THE EXPERTISE TO VOUCH FOR THE SPECIFIC CAPS IN THE END MR MAGAZINER DRAWS ON A LESSON FROM HIS DAYS AS A MANAGEMENT CONSULTANT JUST AS THE JAPANESE FORCED THE STEEL AND CONSUMER ELECTRONICS INDUSTRIES TO CUT COSTS FASTER THAN US EXECUTIVES EVER THOUGHT POSSIBLE SPENDING CAPS WILL DO THE SAME FOR THE BLOATED HEALTHCARE INDUSTRY I THINK THEY WILL MEET AS TOUGH A GOAL AS THEY HAVE TO MR MAGAZINER SAYS THAT'S HUMAN NATURE 9310010151 931001 INTERNATIONAL CHINESE INVESTORS SEEK NEW ISSUE HONG KONG CHINA'S WOULDBE INVESTORS HAVE BOUGHT ABOUT 53 MILLION APPLICATION FORMS FOR THE NEW ISSUE OF GUANGZHOU SHIPYARD INTERNATIONAL CO WHICH WILL BE LISTED ON THE SHANGHAI SECURITIES EXCHANGE IN MIDOCTOBER CALCULATED ON THE NUMBER OF FORMS SOLD INVESTORS STAND ABOUT 037 CHANCE OF SUCCESSFULLY ACQUIRING THE SHARES FOR WHICH THEY INTEND TO APPLY SAID AN OFFICIAL AT SHANGHAI SHENYIN SECURITIES CO SHENYIN IS THE LEAD UNDERWRITER OF THE CHINESE SHIPYARD'S ISSUE OF 1265 MILLION CLASS A SHARES TO PLAYERS IN CHINA BUT ONLY ABOUT 98 MILLION SHARES ARE AVAILABLE TO THE PUBLIC AS THE REMAINING SHARES ARE RESERVED FOR INTERNAL STAFF SUBSCRIPTION 9310010150 931001 TECHNOLOGY & HEALTH LASKER WINNERS INCLUDE DISCOVERER OF CLASS OF PROTEINS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE 1993 ALBERT LASKER MEDICAL RESEARCH AWARDS WINNERS INCLUDED A RESEARCHER WHOSE DISCOVERY HAS LED TO A HUGESELLING CLASS OF MEDICINES AND A CRUSADING PSYCHOLOGIST WHO HELPED SPARK THE HUNT FOR HUMAN GENES THE PRESTIGIOUS LASKER AWARD CARRIES A 25000 PRIZE IN EACH OF FOUR CATEGORIES IT GENERATES MUCH INTEREST IN THE MEDICAL AND SCIENTIFIC COMMUNITIES IN PART BECAUSE MANY WINNERS HAVE GONE ON TO RECEIVE NOBEL PRIZES THE LASKER AWARD FOR CLINICAL MEDICAL RESEARCH WENT TO DONALD METCALF AN AUSTRALIAN BIOLOGIST WHO FIRST IDENTIFIED THE CLASS OF PROTEINS THAT STIMULATE WHITEBLOOD CELLS CRITICAL TO THE BODY'S IMMUNE SYSTEM DR METCALF ISOLATED AND PURIFIED COLONY STIMULATING FACTORS WHICH REGULATE WHITEBLOOD CELL FORMATION BASED ON HIS INITIAL FINDINGS NUMEROUS ACADEMIC AND COMMERCIAL RESEARCH LABORATORIES HAVE BEEN RACING TO DEVELOP THESE STIMULATING FACTORS INTO MEDICINES AGAINST CANCER AND INFECTIOUS DISEASES AMGEN INC OF THOUSAND OAKS CALIF PRODUCES A GENETICALLY ENGINEERED VERSION OF ONE PROTEIN AS NEUPOGEN WHILE IMMUNEX CORP OF SEATTLE SELLS ANOTHER AS LEUKINE TOGETHER THE DRUGS ARE EXPECTED TO GENERATE SALES OF MORE THAN 1 BILLION IN 1993 NANCY WEXLER WON THE LASKER PUBLIC SERVICE AWARD FOR HER CRITICAL ROLE IN DISCOVERING THE GENE THAT CAUSES HUNTINGTON'S DISEASE A LETHAL INHERITED BRAIN DISORDER THAT STRIKES IN MIDDLE AGE DR WEXLER HELPED ORGANIZE THE HUNT FOR THE GENE 25 YEARS AGO AFTER HER MOTHER WAS DIAGNOSED WITH THE DISEASE AND DR WEXLER LEARNED THAT SHE AND HER SISTER WERE AT RISK OF DEVELOPING IT HER SEARCH LED HER TO VENEZUELA WHERE SHE IDENTIFIED A HUGE FAMILY WITH THE DISEASE USING A NEWLY DEVELOPED GENEHUNTING TECHNIQUE SCIENTISTS USED DNA FROM THE FAMILY TO LOCATE THE HUNTINGTON'S DISEASE GENE IN 1983 SUCCESS OF THE TECHNIQUE LAUNCHED HUNDREDS OF OTHER GENE SEARCHES AND THE INTERNATIONAL HUMAN GENOME PROJECT FORMER FLORIDA CONGRESSMAN PAUL G ROGERS ALSO RECEIVED A PUBLIC SERVICE AWARD MR ROGERS HELPED PASS MAJOR HEALTH LEGISLATION IN THE 1970S AND IS CREDITED WITH SIGNIFICANTLY INCREASING FEDERAL FUNDING FOR BASIC MEDICAL RESEARCH THE LASKER AWARD FOR BASIC RESEARCH WENT TO GUNTER BLOBEL A SCIENTIST WHO DISCOVERED HOW PROTEINS IN CELLS TRAVEL TO WHERE THEY MUST CARRY OUT THEIR CRUCIAL FUNCTIONS 9310010149 931001 WHO'S NEWS GRAFF PAYPERVIEW INC GRAFF PAYPERVIEW INC NEW YORK THIS PAYPERVIEW CABLE TELEVISION PROGRAMMER AND NETWORK OWNER NAMED PHILIP J CALLAGHAN TO THE NEW POST OF CHIEF FINANCIAL OFFICER MR CALLAGHAN 40 YEARS OLD WAS PREVIOUSLY VICE PRESIDENT OF GRAFF'S EUROPEAN OPERATIONS 9310010148 931001 WHO'S NEWS UNIQUEST CHAIRMAN CHIEF QUITS IN DISPUTE RELATED TO ACQUISITIONS JACKSONVILLE FLA AUGUST P KLEIN 57 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNIQUEST INC IN A DISAGREEMENT WITH THE BOARD ABOUT THE PACE OF ACQUISITIONS BY THE CONCERN HE AND THE COMPANY SAID THE SOFTWARE DEVELOPER HAS BOUGHT 10 SOFTWARE COMPANIES SINCE 1991 INCLUDING FIVE IN THE FISCAL YEAR ENDED MAY 31 THE BOARD BELIEVED THE ACQUISITIONS SHOULDN'T CONTINUE AT THAT RATE SAID FRED GOLDSMITH CHIEF OPERATING OFFICER YOU CAN ONLY CHEW SO MUCH AND YOU HAVE TO SWALLOW MR KLEIN REACHED AT HIS HOME SAID WE SHOULD BE AGRESSIVE IN THE ACQUISITION AREA THE BOARD'S DESIRE IS TO DO IT IN A MORE CONTROLLED WAY I'M GOING TO DO THINGS THE WAY I THINK THEY OUGHT TO BE DONE MR KLEIN SAID HE WILL SERVE AS A CONSULTANT TO THE COMPANY THE COMPANY SAID IT IS SEARCHING FOR A CHIEF EXECUTIVE DAVID C FRIES 48 YEARS OLD WAS NAMED CHAIRMAN MR FRIES IS GENERAL PARTNER OF CANAAN PARTNERS A VENTURE CAPITAL FIRM AND UNIQUEST STOCKHOLDER IN ROWAYTON CONN 9310010146 931001 U S WEST UNIT TO REDEEM DEBT DENVER U S WEST COMMUNICATIONS INC SAID IT'S CALLING FOR EARLY REDEMPTION EIGHT LONGTERM DEBT ISSUES COVERING A TOTAL OF ABOUT 11 BILLION OF DEBT THE UNIT OF U S WEST INC SAID THE REDEMPTION WILL TAKE ADVANTAGE OF CURRENT FAVORABLE INTEREST RATES BUT THAT ONETIME COSTS OF THE REDEMPTION WOULD REDUCE ITS THIRDQUARTER NET INCOME BY 27 MILLION OR SIX CENTS A SHARE THE CHARGE WAS INCLUDED IN A PREVIOUS ANNOUNCEMENT OF A 38 BILLION REDUCTION OF THIRDQUARTER NET THE COMPANY SAID FUTURE NET WOULD IMPROVE HOWEVER FROM THE INTEREST SAVINGS SEVEN OF THE EIGHT ISSUES HAVE A REDEMPTION DATE OF NOV 1 FOR THE EIGHTH IT'S NOV 15 INCLUDING THESE REDEMPTIONS THE COMPANY WILL HAVE REDEEMED 34 BILLION OF HIGHCOUPON DEBT SINCE THE BEGINNING OF 1992 9310010144 931001 CHINA OPENS GOLD MINES TO FOREIGN INVESTMENT BEIJING CHINA WILL ALLOW FOREIGN COMPANIES TO INVEST IN THE COUNTRY'S GOLD MINES FOR THE FIRST TIME THE OFFICIAL CHINA DAILY NEWSPAPER REPORTED INVESTMENTS WILL BE LIMITED TO LOWGRADE OR HARDTODIG MINES THE PAPER SAID IT QUOTED AI DACHENG OF THE MINISTRY OF METALLURGICAL INDUSTRY AS SAYING THE LIST OF MINES IS EXPECTED TO BE ANNOUNCED IN OCTOBER HE SAID GOLD COMPANIES FROM THE US CANADA AUSTRALIA AND SOUTH AFRICA ALREADY HAVE SHOWN INTEREST IN EXPLORATION BUT DID NOT GIVE ANY NAMES CHINA'S MAJOR LOWGRADE MINES ARE IN YUNNAN GUIZHOU SICHUAN AND GUANGXI PROVINCES IN SOUTHERN CHINA CHINA BEGAN ALLOWING FOREIGN COMPANIES TO ASSIST IN FINANCING MINING TECHNOLOGY IN JUNE THIS MONTH CHINA RAISED ITS GOLD PRICE TO WORLD LEVELS AND SAID IT WOULD ALLOW THE PRICES TO FLUCTUATE WITH THE INTERNATIONAL MARKET THIS MOVE AROUSED GREATER INTEREST ABROAD IN CHINA'S GOLD INDUSTRY THE NEWSPAPER SAID 9310010143 931001 ANNENBERG'S 25 MILLION TO FUND COLONIAL CENTER NEW YORK THE COLONIAL WILLIAMSBURG FOUNDATION SAID IT RECEIVED A 25 MILLION GIFT FROM WALTER AND LEE ANNENBERG THAT WILL HELP FUND A NEW EDUCATIONAL CENTER ADJACENT TO WILLIAMSBURG VA A RESTORED 18TH CENTURY TOWN THE WILLIAMSBURG FOUNDATION WHICH AIMS TO EDUCATE AMERICANS ABOUT THE COLONIAL PERIOD SAID THE GIFT FROM THE ANNENBERG FOUNDATION WILL BE USED FOR CONSTRUCTION AND ENDOWMENT COSTS AT ITS NEW BRUTON HEIGHTS SCHOOL EDUCATIONAL CENTER ABOUT 12 MILLION WILL BE USED FOR CONSTRUCTION OF THE 33 MILLION PROJECT AND THE BALANCE WILL BE USED TO HELP ENDOW OPERATING COSTS MR ANNENBERG 85 YEARS OLD FORMERLY OWNED TV GUIDE AND OTHER PUBLICATIONS AND SERVED AS A US AMBASSADOR TO BRITAIN MR AND MRS ANNENBERG HAVE SUPPORTED COLONIAL WILLIAMSBURG SINCE 1960 OTHER MAJOR DONORS TO THE BRUTON HEIGHTS PROJECT INCLUDE THE FAMILY OF JOHN D ROCKEFELLER JR WHO FOUNDED COLONIAL WILLIAMSBURG AND FROM DEWITT AND LILA WALLACE FOUNDERS OF READER'S DIGEST THE NEW CENTER WILL INCLUDE THE JOHN D ROCKEFELLER JR LIBRARY AND THE DEWITT WALLACE COLLECTIONS AND CONSERVATION BUILDING 9310010142 931001 SLOW JOB GROWTH APPEARS LIKELY LABOR OFFICIAL SAYS WASHINGTON WILLIAM BARRON DEPUTY COMMISSIONER OF THE BUREAU OF LABOR STATISTICS SAID JOB GROWTH IS LIKELY TO REMAIN SLOW IN THE COMING MONTHS EVERYTHING WE SEE SUGGESTS SLOW GROWTH MR BARRON SAID HE ADDED THAT IN MANUFACTURING IN PARTICULAR THERE IS A RELUCTANCE TO HIRE WHICH HE SAID WAS THE RESULT OF SAGGING US EXPORTS AND DEFENSE DOWNSIZING SINCE THE RECOVERY BEGAN 29 MONTHS AGO THERE HAS ONLY BEEN A 2 INCREASE IN JOBS HE SAID AT THIS POINT IN OTHER RECOVERIES JOB GROWTH HAS AVERAGED 9 THE NEXT EMPLOYMENT REPORT IS TO BE RELEASED NEXT FRIDAY BARRON SAID THE REPORT ON SEPTEMBER'S LABOR MARKET CONDITIONS WILL REFLECT SOME SORTING OUT DURING THE SUMMER MONTHS MANY TEENAGERS AND COLLEGE STUDENTS ENTER THE LABOR MARKET AND PARENTS SOMETIMES CHANGE THEIR WORK SCHEDULES TO TEND TO CHILDREN AT HOME BUT IN SEPTEMBER THOSE PEOPLE DECIDE WHETHER THEY WILL STAY IN OR OUT OF THE LABOR MARKET IF YOUNG ADULTS CHOSE TO STAY IN THE LABOR FORCE DURING SEPTEMBER EVEN AS THE SUMMER FEDERAL JOBS PROGRAM DREW TO A CLOSE THE UNEMPLOYMENT RATE FOR TEENAGERS WILL LIKELY RISE HE SAID 9310010141 931001 MARKETING & MEDIA CBS'S RATHER FAULTS STATE OF TV NEWS PROGRAMMING NEW YORK CBS EVENING NEWS COANCHOR DAN RATHER SPARED NO ONE NOT EVEN THE MANAGEMENT OF HIS OWN EMPLOYER IN LASHING OUT AT THE STATE OF NEWS PROGRAMMING IN A SPEECH AT THE RADIO AND TELEVISION NEWS DIRECTORS ASSOCIATION ANNUAL CONVENTION IN MIAMI WEDNESDAY NIGHT MR RATHER CRITICIZED LOCAL STATIONS SYNDICATORS AND NETWORKS INCLUDING HIS OWN FOR PANDERING TO RATINGS AND PROFITS AT THE EXPENSE OF PUBLIC SERVICE OF THE STATE OF NEWS HE SAID IT'S THE RATINGS STUPID DON'T YOU KNOW THEY'VE GOT US PUTTING MORE FUZZ AND WUZZ AND COPSHOP STUFF ON AIR SO NEWS CAN COMPETE WITH ENTERTAINMENT PROGRAMS FOR DEAD BODIES MAYHEM AND LURID TALES MAKE NICE NOT NEWS HAS BECOME THE NEW MANTRA OF FEARFUL MANAGERS HE SAID MR RATHER CRITICIZED CBS INC ALTHOUGH NOT BY NAME FOR AIRING AN ENTERTAINMENT SHOW LAST SPRING ABOUT THE PURPORTED DISCOVERY OF NOAH'S ARK WHICH TURNED OUT TO BE A HOAX THE TIME HE SAID WOULD HAVE BEEN BETTER SPENT ON A DOCUMENTARY AS FOR THE DATELINE NBC INCIDENT IN WHICH GENERAL ELECTRIC CO'S NBC NEWS WAS CAUGHT USING TINY ROCKETS TO FAKE A TRUCK CRASH TEST MR RATHER SAID OTHER NEWS ORGANIZATIONS COULDN'T REJOICE BECAUSE IT COULD HAPPEN TO US 9310010140 931001 TWO NEW ENGLISHSPEAKING MAGAZINES TRY TO CRACK ASIANAMERICAN AUDIENCE BY ELIZABETH SEAY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JADE RICE BRIDGE EAST WIND THE NAMES OF DEFUNCT MAGAZINES SUGGEST THE DIFFICULTY OF DEFINING ASIAN AMERICA UNDETERRED TWO NEW MAGAZINES ARGUE THAT NOW IS THE TIME TO JUMP INTO THIS STILLEVOLVING MARKET THE GENERATION OF ASIANAMERICANS AGED 25 TO 35 IS READY TO DEFINE ITSELF AS ASIANAMERICAN SAYS PHOEBE ENG PUBLISHER OF THE QUARTERLY A MAGAZINE OLDER GENERATIONS IN CONTRAST HAD TAKEN AN ASSIMILATIONIST PERSPECTIVE OR WEREN'T NUMEROUS ENOUGH TO ESTABLISH A PRESENCE SHE SAID NOW SHE ADDS IT'S ALMOST IN FASHION TO IDENTIFY A MAGAZINE STARTED BY MS ENG AND JEFF YANG FOCUSES ON THE CONCERNS OF YOUNG ENGLISHSPEAKING ASIANAMERICANS MR YANG SAYS THE VERY CONCEPT OF ASIAN AMERICA IS A NOVEL INVENTION IT'S SOMETHING THAT OCCURRED IN THE LAST 30 YEARS AS SECONDGENERATION ENGLISHSPEAKING ASIANAMERICANS DISCOVERED THEY HAD MORE THAN JUST THEIR PARENTS' IMMIGRANT STORIES IN COMMON AFTER MR YANG GRADUATED FROM HARVARD UNIVERSITY HE AND THREE FRIENDS WHO HAD WORKED TOGETHER ON A COLLEGE MAGAZINE FOR ASIANAMERICANS BEGAN MEETING WITH PROMINENT MEMBERS OF THE COMMUNITY TO DISCUSS STARTING A NATIONAL PUBLICATION THERE WASN'T MUCH OUT THERE AND THERE STILL ISN'T MUCH OUT THERE THAT SPEAKS SPECIFICALLY TO YOUNG INFORMATIONHUNGRY ASIANAMERICANS MR YANG SAYS A MAGAZINE HOPES TO HELP FILL THAT VOID ABOUT 44 OF THE MAGAZINE'S READERS ARE BETWEEN 25 AND 35 MS ENG SAYS ANOTHER 33 ARE BETWEEN 18 AND 25 ASIANAMERICANS ARE AND HAVE BEEN FORMING A CULTURE MR YANG SAYS A MAGAZINE IS EXPLORING THE IDEA OF WHAT IT MEANS THE ISSUES THAT EMERGE FROM THE CREATION OF THAT COMMUNITY THE MAGAZINE TACKLES CONTROVERSIAL CULTURAL ISSUES THAT AFFECT MANY ASIANAMERICANS THESE INCLUDE INTERRACIAL ROMANCE MODELMINORITY STEREOTYPES BIAS CRIME GLASS CEILINGS IN THE WORKPLACE MEDIA REPRESENTATIONS OF ASIANAMERICANS AND COSMETIC SURGERY SOMETIMES IT TRIES TO BE MANY THINGS AT ONCE IN A RECENT ISSUE IT EXAMINED THE SELLING OF ASIAN AMERICA THE VERY MARKET IT OFFERS TO ITS ADVERTISERS MS ENG SAYS THE FOUNDERS DON'T WANT THE MAGAZINE TO BE JUST FOR THE YUPPIES THE MODEL MINORITY BUT FOR EVERY WALK OF LIFE BUT THE MAGAZINE'S APPEAL TO ADVERTISERS LIES SQUARELY IN ITS UPSCALE DEMOGRAPHICS A MAGAZINE'S RESEARCH SHOWS ITS READERS' MEDIAN HOUSEHOLD INCOME IS 57000 COLLEGE DEGREES ARE HELD BY 88 AND 38 HAVE ADVANCED DEGREES THE MAGAZINE RECENTLY PUT OUT ITS SEVENTH ISSUE AFTER THREE YEARS OF TRIAL AND REFINEMENT THE EDITORS HOPE TO HAVE IT PUBLISHED BIMONTHLY BY 1994 FOR THE ISSUE DUE OUT THIS MONTH THE MAGAZINE PROMISES ADVERTISERS A 60000 CIRCULATION UP FROM 40000 FOR THE SUMMER ISSUE THE SEPTEMBER ISSUE WILL HAVE THE EQUIVALENT OF 23 FULL AD PAGES TOM KAGY PUBLISHER OF FACE MAGAZINE HAS A DIFFERENT EDITORIAL APPROACH FROM HIS COUNTERPARTS AT A FOR A LOT OF YOUNGER ASIANS THERE'S A PREOCCUPATION WITH IDENTITY QUESTIONS HE SAYS THEN THEY QUICKLY GET BORED WITH THAT A YEAR AGO MR KAGY'S COMPANY TRANSPACIFIC MEDIA BEGAN PUBLISHING FACE A BIMONTHLY BEAUTY MAGAZINE FOR ASIANAMERICAN WOMEN IN THE TRADITION OF VOGUE AND GLAMOUR THE MAGAZINE FOCUSES ON FASHION MAKEUP TIPS FOOD AND INTERVIEWS WITH PROFESSIONAL WOMEN HOWEVER UNLIKE OTHER FASHION MAGAZINES FACE USES ASIANAMERICAN MODELS EXCLUSIVELY FACE STUDIES THE TECHNOLOGY OF ASIAN BEAUTY MR KAGY SAYS THIS IS MEANT QUITE LITERALLY FACE'S MAYJUNE ISSUE INCLUDED A PRIMER ON THE MOST SOUGHTAFTER ENHANCEMENTS FOR THE ASIAN FACE AMONG THEM THE POPULAR PROCEDURE TO CREATE A DOUBLE EYELID FOR ASIAN EYES A FEATURE MORE COMMON AMONG WESTERNERS THE ARTICLE WAS WRITTEN BY A PLASTIC SURGEON SPECIALIZING IN COSMETIC SURGERY OF THE ISSUE'S 10 FULL AD PAGES FOUR WERE FROM COSMETICS COMPANIES TRANSPACIFIC MEDIA PUBLISHES ONE OF THE BIGGEST SUCCESS STORIES IN THE ENGLISHLANGUAGE ASIAN MARKET ITS TRANSPACIFIC MAGAZINE A DIVERSE LIFESTYLE PUBLICATION THAT TARGETS AFFLUENT ASIANAMERICANS AND ENGLISHSPEAKING ASIANS HAS LASTED SEVEN YEARS AND HAS A CIRCULATION OF 59000 THE PUBLISHER ALSO PLANS TO START XO A MAGAZINE FOR ASIANAMERICAN MEN MR KAGY ATTRIBUTES TRANSPACIFIC'S SUCCESS TO TENACITY AND A VERY DEEP POCKET YOU NEED MILLIONS TO START A MAGAZINE AND WAIT OUT THE THREE OR FOUR YEARS IT TAKES TO GET ESTABLISHED HE SAYS MR KAGY SEEMS PREPARED TO INVEST SIMILAR SUMS IN FACE'S FUTURE CONSIDERING THAT FACE'S APPROXIMATELY 20000 SUBSCRIBERS HAVE A MEDIAN HOUSEHOLD INCOME OF 90000 TO 100000 THE INVESTMENT MAY WELL PAY OFF BUT THERE ARE HURDLES TO CLEAR ALTHOUGH THEY ARE MARKETING VERY DIFFERENT PRODUCTS THE PUBLISHERS OF A AND FACE AGREE THAT IT HAS BEEN DIFFICULT TO PERSUADE ADVERTISERS TO REACH ASIANS THROUGH ENGLISHLANGUAGE MEDIA OLDER ASIANAMERICAN PUBLICATIONS SUCH AS THE 81YEAROLD HAWAII HOCHI IN JAPANESE AND THE 55YEAROLD SING TAO DAILY TEND TO BE NEWSPAPERS FOCUSED ON A SINGLE NATIONAL ORIGIN ANDERSON CHUNG OF AMKO ADVERTISING INC A NINEYEAROLD AGENCY THAT PRIMARILY CREATES ADS TARGETING PARTICULAR ETHNIC GROUPS SAYS THERE IS LITTLE MARKET RESEARCH TO BACK UP THE CONTENTION THAT ADVERTISING IN ENGLISH TO ASIANS IS EFFECTIVE AND FEW ASIANAMERICAN MAGAZINES HAVE STAYED IN BUSINESS LONG ENOUGH TO FIND OUT THEY HAVE A LIFE OF ABOUT TWO YEARS HE SAYS STILL HE SAYS ADVERTISERS SHOULD BE APPLAUDED FOR RECOGNIZING THAT ASIAN AMERICA IS A DISTINCTIVE SEGMENT IN THE MARKETPLACE ASIANAMERICANS ARE THE FASTESTGROWING IMMIGRANT GROUP IN THE US AND ASIAN HOUSEHOLDS HAVE THE HIGHEST ANNUAL MEDIAN INCOME AT 42245 OF ANY SINGLE GROUP WITH WHITES SECOND AT 36915 ACCORDING TO US CENSUS FIGURES ADVERTISERS AREN'T LIKELY TO IGNORE THAT FOR LONG 9310010139 931001 COOPER COS PUTS BREASTIMPLANT TROUBLES BEHIND IT BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL FORT LEE NJ COOPER COS INC A MEDICAL PRODUCTS MAKER WHILE FAR FROM BEING ON THE ROAD TO GOOD HEALTH IS SHOWING SOME SIGNS OF RECOVERY THE COMPANY WHICH HAS REPORTED A LOSS OVER SEVERAL QUARTERS BECAUSE OF BREASTIMPLANT LITIGATION SAID IT SETTLED THE ISSUE WITH A UNIT OF BRISTOLMYERS SQUIBB CO COOPER ALSO SAID THAT A CRUCIAL DEBTRESTRUCTURING PLAN IT OUTLINED RECENTLY HAS RECEIVED THE INITIAL BLESSING OF A KEY GROUP OF DEBENTUREHOLDERS THE LITIGATION RELATES TO A LAWSUIT FILED IN 1991 BY BRISTOLMYERS WHICH ACQUIRED COOPER'S BREAST IMPLANT BUSINESS IN 1988 ONE OF THE UNITS OF THE BUSINESS SOLD POLYURETHANE FOAMCOVERED BREAST IMPLANTS THAT BECAME THE TARGET OF ABOUT 625 PRODUCTLIABILITY SUITS IN STATE AND FEDERAL COURTS BRISTOLMYERS SOUGHT A JUDGMENT HOLDING COOPER RESPONSIBLE FOR ALL CLAIMS RELATED TO IMPLANTS SOLD BEFORE THE ACQUISITION COOPER SAID IT HAS AGREED TO PAY 12 MILLION TO 30 MILLION OVER 10 YEARS THE ACTUAL AMOUNT DEPENDS ON COOPER'S PRETAX EARNINGS BETWEEN 1999 AND 2003 TO MEDICAL ENGINEERING CORP THE BRISTOLMYERS UNIT THAT ACQUIRED THE BREAST IMPLANT BUSINESS UNDER THE AGREEMENT COOPER WILL PAY MEDICAL ENGINEERING 3 MILLION INITIALLY AND ADDITIONAL AMOUNTS OVER 10 YEARS MEDICAL ENGINEERING WILL PAY LEGAL FEES AS WELL AS JUDGMENTS AND SETTLEMENTS RESULTING FROM CURRENT AND FUTURE CLAIMS RELATING TO THE IMPLANTS BEFORE THE ACQUISITION OF COOPER'S BUSINESS THE SETTLEMENT HOWEVER HINGES ON A VITAL DEBT RESTRUCTURING PLAN THAT HAS RECEIVED THE INITIAL APPROVAL OF COOPER'S DEBENTUREHOLDERS MEDICAL ENGINEERING SAID IT MAY END ITS AGREEMENT TO SETTLE IF COOPER'S DEBENTURE PLAN OR AN ALTERNATIVE SCHEME IS NOT COMPLETED BY FEB 1 UNDER ITS ORIGINAL PLAN COOPER SAID IT WOULD EXCHANGE 25 MILLION FACEVALUE OF ITS 10625 DEBENTURES DUE 2005 175 MILLION FACEVALUE OF A NEW ISSUE OF 975 SENIOR SUBORDINATED NOTES DUE 2003 PLUS CASH EACH OF THE NEW NOTES HAS A FACE VALUE OF 700 EVEN IF COOPER CAN SETTLE ITS LITIGATION WITH BRISTOLMYERS AND CAN COMPLETE ITS INTENDED DEBT RESTRUCTURING SEVERAL HURDLES LIE AHEAD THE MOST SIGNIFICANT IS A LEGAL BATTLE THAT PITS THE COMPANY AGAINST SECURITIES REGULATORS IN NOVEMBER 1992 COOPER AND THE COMPANY'S FORMER COCHAIRMAN GARY A SINGER WERE CHARGED IN A FEDERAL INDICTMENT AND LAWSUIT WITH CONSPIRACY AND FRAUD IN CONNECTION WITH AN ALLEGED JUNKBOND INSIDER TRADING SCHEME USING COOPER FUNDS THOSE CHARGES ARE STILL PENDING THE CASE IS EXPECTED TO GO TO TRIAL THIS NOVEMBER IF THE COMPANY CAN SUCCESSFULLY DEFEND ITSELF AGAINST THE PENDING CHARGES BROUGHT BY THE US ATTORNEY AND THE SECURITIES AND EXCHANGE COMMISSION AND FURTHER REDUCE OUR COSTS OF DOING BUSINESS WE CAN BE CAUTIOUSLY OPTIMISTIC ABOUT OUR PROSPECTS FOR LONGTERM RECOVERY ROBERT S WEISS CHIEF FINANCIAL OFFICER SAID COOPER'S SHARES CLOSED AT 625 CENTS UP 25 CENTS IN LATE THURSDAY TRADING ON THE BIG BOARD 9310010138 931001 SWISS TO RETURN 11 MILLION IN DRUG PROFITS TO THE US NEW YORK THE SWISS GOVERNMENT WILL RETURN 11 MILLION TO US AUTHORITIES IN APPARENTLY THE LARGEST REPATRIATION OF DRUG PROFITS TO THE US THE COMPLEX REPATRIATION PROCESS CALLS FOR 22 MILLION IN NARCOTICS PROFITS TO BE WIRED TO THE US FOR FORFEITURE BUT THE SWISS GOVERNMENT WILL RECEIVE HALF THE MONEY UNDER AN ASSETSHARING ACCORD US ATTORNEY ZACHARY W CARTER IN BROOKLYN NY SAID THE MONEY CAME FROM THE NARCOTICS SALES OF STUART NEWTON ALIAS HOWARD DATZ WHO SMUGGLED TENS OF THOUSANDS OF POUNDS OF PAKISTANI HASHISH INTO THE US AND CANADA MR NEWTON IS SERVING A 40YEAR SENTENCE FOR VARIOUS NARCOTICS CRIMES THE SWISS ARE MUCH MORE COOPERATIVE THAN THEY USED TO BE SAID DAVID B SMITH A LAWYER WITH EXPERTISE IN FORFEITURE LAW TODAY YOU HAVE TO BE A FOOL TO PUT YOUR MONEY THERE IF YOU'RE A CRIMINAL ESPECIALLY IF YOU'RE A DRUG DEALER US OFFICIALS HAVE NOW RECOVERED ABOUT 44 MILLION IN NARCOTICS PROCEEDS FROM MR NEWTON AND HIS ASSOCIATES 9310010137 931001 TREASURY TO BACK OPENING SOME DEBTPANEL SESSIONS WASHINGTON THE TREASURY DEPARTMENT HAS AGREED TO ACCEPT LEGISLATION TO PARTIALLY OPEN THE PROCEEDINGS OF ITS PRIVATESECTOR DEBTADVISORY PANEL THE MEASURE WOULD MAKE PUBLIC PART OF THE SESSIONS OF THE TREASURY BORROWING ADVISORY COMMITTEE AND WOULD REQUIRE PROMPT RELEASE OF COMMITTEE MINUTES IT ALSO WOULD REQUIRE THE TREASURY TO ASSURE THAT ANY QUALIFIED BIDDER BE ALLOWED TO SUBMIT COMPUTERGENERATED BIDS AT TREASURY AUCTIONS BY THE END OF 1995 THE COMPROMISE HAMMERED OUT IN PRIVATE NEGOTIATIONS BETWEEN BANKING COMMITTEE STAFFERS AND TREASURY OFFICIALS WOULD PUT MORE TREASURY DEBT INFORMATION IN THE PUBLIC DOMAIN MORE QUICKLY IT ALSO HELPS CLEAR THE WAY TOWARD FINAL ACTION THIS YEAR ON COMPREHENSIVE LEGISLATION NOW AWAITING ACTION ON THE HOUSE FLOOR TO OVERHAUL REGULATION OF THE GOVERNMENT BOND MARKET THE ADVISORY PANEL PROVISION WAS INITIATED BY HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS AND ISN'T EXPECTED TO ENCOUNTER MUCH OPPOSITION WHEN THE MEASURE IS DISCUSSED BY A HOUSESENATE CONFERENCE COMMITTEE THE COMPROMISE WOULD REQUIRE COMMITTEE MEETINGS TO BE OPEN TO THE PUBLIC EXCEPT WHEN DISCUSSING OR DEBATING THE ISSUES PRESENTED TO THE PANEL BY THE TREASURY OR WHEN MAKING RECOMMENDATIONS TO THE TREASURY THIS WOULD HAVE THE EFFECT OF OPENING UP THE INITIAL PART OF MEETINGS WHEN TREASURY STAFFERS REVIEW THE DEPARTMENT'S BORROWING OPERATIONS AND NEEDS AND RELATED DEBTMANAGEMENT MATTERS 9310010136 931001 SATELLITE GROUPS TO COORDINATE ASIA COVERAGE BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG TWO OF ASIA'S BIGGEST SATELLITE OPERATORS HAVE AGREED TO A TRUCE IN A LONGRUNNING DISPUTE THAT THREATENED TO BLOCK BOTH COMPANIES' LAUNCH AND BROADCASTING PLANS ASIA SATELLITE TELECOMMUNICATIONS CO OF HONG KONG AND SHINAWATRA SATELLITE PUBLIC CO OF THAILAND HAVE AGREED NOT TO CAUSE EACH OTHER HARMFUL INTERFERENCE AND TO EACH LOCATE THEIR SATELLITES IN POSITIONS ALLOWING THE OTHER TO BROADCAST FREELY WHILE THAT'S GOOD NEWS FOR BOTH SATELLITE COMPANIES AND THEIR CUSTOMERS FRESH COMPETITION AND UNANSWERED QUESTIONS ABOUT POSSIBLE US SANCTIONS AGAINST CHINA STILL HANG OVER ASIASAT AND ITS LARGEST CUSTOMER HONG KONGBASED STAR TV ASIASAT IS JOINTLY OWNED BY CABLE & WIRELESS PLC OF BRITAIN HUTCHISON WHAMPOA LTD OF HONG KONG AND CHINA INTERNATIONAL TRUST & INVESTMENT CO BEIJING'S MAIN OVERSEAS INVESTMENT ARM UNDER THE AGREEMENT SHINAWATRA'S TWO SATELLITES THAICOM 1 AND THAICOM 2 WILL BOTH BE SITUATED IN AN ORBITAL POSITION ALLOWING THEM TO BROADCAST IN AN AREA BOUNDED ROUGHLY BY JAPAN THE KOREAN PENINSULA BURMA AND SINGAPORE THAICOM 1 IS TO BE LAUNCHED IN DECEMBER WHILE THAICOM 2 IS TO GO UP IN MID1994 THE PLANNED ORBITAL POSITION FOR ASIASAT'S ASIASAT 2 WOULD ALLOW IT TO COVER A 53COUNTRY AREA FROM JAPAN AND NEW ZEALAND TO MOSCOW AND THE MIDDLE EAST DISAGREEMENT BETWEEN THE TWO COMPANIES ORIGINALLY AROSE OVER SHINAWATRA SATELLITE'S CLAIMS TO AN ORBITAL SLOT THAT WOULD HAVE OVERLAPPED WITH THAT OF ASIASAT CAUSING INTERFERENCE FOR BOTH PARTIES SHINAWATRA'S AGREEMENT TO MODIFY ITS ORBITAL POSITION REMOVES A BIG OBSTACLE TO THE LAUNCH OF ASIASAT 2 SCHEDULED FOR THE FIRST QUARTER OF 1995 HOWEVER ASIASAT IS STILL WAITING TO HEAR FROM THE US GOVERNMENT WHETHER ASIASAT 2 WILL BE AFFECTED BY RECENT US SANCTIONS PROHIBITING THE SALE OF US SATELLITE TECHNOLOGY TO CHINA ASIASAT 2 IS UNDER CONSTRUCTION BY MARTIN MARIETTA CORP OF THE US AND IS TO BE LAUNCHED ABOARD A CHINESEMADE LONG MARCH MISSILE BY CHINA GREAT WALL INDUSTRIES CORP ONE OF 10 COMPANIES LISTED BY THE US AS A TARGET OF THE SANCTIONS STAR TV CONTROLLED BY NEWS CORP HAS OPTIONS TO LEASE EIGHT TRANSMISSION CHANNELS FROM ASIASAT 2 WHICH IT HAS SAID IT INTENDS TO USE TO LAUNCH ITS PLANNED PAYTELEVISION SERVICE SEPARATELY A SPOKESMAN SAID STAR TV HAS SUSPENDED PLANS TO LAUNCH THE PAYTV SERVICE OUTSIDE HONG KONG BY NEXT MARCH 31 WHILE ITS NEW MANAGEMENT REEVALUATES STAR'S STRATEGY EARLIER THIS YEAR NEWS CORP PURCHASED 67 OF STAR FOR 525 MILLION FROM ITS FOUNDERS HUTCHISON WHAMPOA AND THE FAMILY OF LI KASHING 9310010135 931001 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEW YORK PRUDENTIAL SECURITIES INC SAID GEORGE HANLEY 39 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND DIRECTOR OF COMPLIANCE AND WILL ALSO BE RESPONSIBLE FOR ITS REGISTRATION DEPARTMENT MR HANLEY WAS MOST RECENTLY VICE PRESIDENT AND ASSOCIATE AUDITOR IN THE INTERNAL AUDIT DEPARTMENT AT PRUDENTIAL OVERSEEING ALL DOMESTIC AND INTERNATIONAL AUDIT OPERATIONS HE SUCCEEDS HOWARD BARTNICK 41 WHO LEFT THE FIRM IN JULY TO JOIN PAINEWEBBER INC AS SENIOR VICE PRESIDENT AND GENERAL COUNSEL FILLING MR HANLEY'S POSITION IS ROLAND NARDINI PREVIOUSLY HEAD OF FINANCIAL ANALYSIS AT PRUDENTIAL THE COMPLIANCE GROUP PROVIDES POLICY AND SURVEILLANCE FOR THE FIRM'S RETAIL BRANCHES TO MONITOR COMPLIANCE WITH INDUSTRY REGULATIONS 9310010134 931001 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF THOMAS E PARDUN WAS ELECTED A DIRECTOR OF THIS DISKDRIVE PRODUCTS MAKER INCREASING THE BOARD MEMBERSHIP TO NINE MR PARDUN 49 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF U S WEST MULTIMEDIA COMMUNICATIONS GROUP A UNIT OF U S WEST INC 9310010133 931001 WHO'S NEWS RR DONNELLEY & SONS CO RR DONNELLEY & SONS CO CHICAGO CARL K DOTY THE COMPANY'S 62YEAROLD PRESIDENT WILL RETIRE TODAY HE HAD INFORMED THE COMPANY EARLY THIS YEAR OF HIS PLANS TO STEP DOWN THE PRINTING CONCERN SAID NO SUCCESSOR HAS BEEN NAMED AT THIS TIME BUT MR DOTY'S RESPONSIBILITIES ARE BEING ASSUMED BY SEVERAL OTHER MEMBERS OF SENIOR MANAGEMENT MR DOTY JOINED DONNELLEY IN 1960 AND WAS NAMED PRESIDENT IN 1991 9310010132 931001 UNITED AIR UNIONS MULL 1 BILLION MORE IN CONCESSIONS FOR NEW LOWFARE CARRIER BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A UNION COALITION AT UNITED AIRLINES HAS BEEN DISCUSSING AT LEAST 1 BILLION MORE IN LABORCOST SAVINGS THAN PREVIOUSLY DISCLOSED ACCORDING TO INDIVIDUALS FAMILIAR WITH THE UNITED TALKS THE COALITION HAS PROPOSED CONCESSIONS OF AT LEAST 1 BILLION OVER FIVE YEARS AS PART OF A PLAN TO SET UP A NEW LOWFARE AIRLINE WITHIN THE CARRIER THAT AMOUNT WOULD HAVE BEEN IN ADDITION TO CONCESSIONS OF 335 BILLION OVER FIVE YEARS THAT THE PILOTS MACHINISTS AND FLIGHT ATTENDANTS HAD ALREADY PROPOSED AS PART OF THEIR EFFORT TO BUY A MAJORITY STAKE IN UAL CORP UNITED'S PARENT MANAGEMENT AND LABOR HOWEVER REMAINED FAR FROM A DEAL AFTER THE ASSOCIATION OF FLIGHT ATTENDANTS QUIT THE TWOMONTHOLD TALKS AFTER UNITED DECIDED WEDNESDAY TO BASE SOME FLIGHT ATTENDANTS IN TAIWAN THE DEPARTURE OF THE FLIGHT ATTENDANTS WHO SAY THEY WOULD HAVE TRIBUTED MORE THAN 600 MILLION OF THE MORE THAN 4 BILLION OF TOTAL SAVINGS CASTS EVEN GREATER DOUBT ON THE OUTCOME OF THE SECRETIVE AND COMPLEX TALKS REFLECTING THE UNCERTAINTY UAL SHARES WERE DOWN 375 TO 13725 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BUT INDIVIDUALS CLOSE TO THE TALKS AGREE BOTH LABOR AND UNITED'S MANAGEMENT HAVE BEEN SERIOUS ABOUT THE IDEA OF A NEW LOWCOST LOWFARE CARRIER OPERATING WITH LOWER WAGES AND MORE FLEXIBLE WORK RULES THAT MARKS A BIG SHIFT IN ORGANIZED LABOR'S VIEW THAT THE INDUSTRY'S PROBLEMS ARE MAINLY THE RESULT OF MANAGEMENT MISCUES IT'S ALSO AN ACKNOWLEDGEMENT BY UNITED MANAGEMENT THAT CREATING A NONUNION SPINOFF WOULD LEAD TO LABOR STRIFE AT THE GIANT CARRIER UNITED DIDN'T HAVE ANY COMMENT YESTERDAY BUT IN A LETTER LAST WEEK TO EMPLOYEES UNITED CHAIRMAN STEPHEN WOLF SAID THE CARRIER WAS TALKING WITH ITS THREE UNIONS IN A SPIRIT OF EXCEPTIONAL COOPERATION WITH THE COLLECTIVE REALIZATION THAT THE MARKETPLACE COMPELS US TO MAKE DECISIONS THAT WILL FUNDAMENTALLY CHANGE OR RESHAPE UNITED AIRLINES UNITED LIKE OTHER MAJOR CARRIERS HAS CONTENDED THAT HIGHER LABOR COSTS INCLUDING RESTRICTIVE WORK RULES MAKE IT DIFFICULT TO COMPETE AGAINST SOUTHWEST AIRLINES AND A BEVY OF LOWCOST STARTUPS SOME OF OUR WORK RULES ARE A LITTLE RESTRICTIVE ACKNOWLEDGED KEVIN LUM PRESIDENT OF THE ASSOCIATION OF FLIGHT ATTENDANTS AT UNITED FOR EXAMPLE UNITED CAN'T ASSIGN ITS FLIGHT ATTENDANTS TO WORK MORE THAN SIX FLIGHT SEGMENTS A DAY MR LUM SAID HIS UNION COULD HAVE RELAXED THAT FOR THE NEW CARRIER DUBBED AIRLINE WITHIN AN AIRLINE IN ADDITION TO LOW FARES THE NEW CARRIER WOULD OFFER THE POTENTIAL OF INCREASED SERVICE AS LOWER COSTS MAKE FLYING ADDITIONAL ROUTES ECONOMICAL MANY DETAILS HAD YET TO BE WORKED OUT BUT THE INDIVIDUALS CLOSE TO THE TALKS SAID THE LABOR SAVINGS ON THE NEW AIRLINE COULD APPROACH 300 MILLION A YEAR AS THE CARRIER GROWS IN ADDITION TO MORE FLEXIBLE WORK RULES AND LOWER WAGES THE NEW AIRLINE WOULD HAVE SHORT ROUTES LIMITED SNACK SERVICE AND A SIMPLE FLEET PROBABLY BOEING 737S SUCCESS BY UNITED AND ITS UNIONS IN STARTING SUCH A CARRIER WOULD PUT IMMEDIATE PRESSURE ON AMERICAN AND DELTA AIR LINES TO MAKE CHANGES OF THEIR OWN AMERICAN A UNIT OF AMR CORP HAS STUDIED THE IDEA IN THE PAST AND DELTA RECENTLY RAISED THE IDEA OF A LOWCOST OPTION WITHIN ITS HUGE ROUTE STRUCTURE THOSE SOCALLED BIG THREE AIRLINES FACE FAR MORE OBSTACLES THAN CONTINENTAL AIRLINES WHOSE ALREADY LOW LABOR COSTS ENABLED IT TO START A TEST LAST MONTH OF A LOWFARE NOFRILLS SERVICE ON THE EAST COAST 9310010131 931001 POLITICS & POLICY SUPREME COURT TO RECONVENE WITH ISSUE OF RACE IN ELECTIONS AT TOP OF DOCKET BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ROLE OF RACE IN POLITICS IS BACK AT THE TOP OF THE SUPREME COURT'S DOCKET IN JUNE THE HIGH COURT STARTLED FEDERAL AND STATE LAWMAKERS BY CASTING DOUBT ON THE PROPRIETY OF ODDLY SHAPED DISTRICTS SCULPTED TO PROMOTE MINORITY VOTING POWER NOW THE JUSTICES ARE POISED TO RECONSIDER THE CORE PRINCIPLE OF THE FEDERAL VOTING RIGHTS ACT DOES THE LAW PROMISE EQUAL POLITICAL PARTICIPATION FOR MINORITIES OR GUARANTEE THEM PARTICULAR RESULTS ONE OF THE FIRST CASES THE COURT WILL TAKE UP WHEN IT RECONVENES MONDAY REQUIRES THE JUSTICES TO WADE INTO THE MURKY ETHNIC RIVALRIES AMONG BLACKS HISPANICS AND WHITES IN SOUTH FLORIDA THAT STATE'S DEMOCRATICCONTROLLED LEGISLATURE SAYS ITS RECENT REDISTRICTING PLAN ASSURES MINORITIES REPRESENTATION AT LEAST PROPORTIONAL TO THEIR SHARE OF THE POPULATION BUT THE PLAN IS UNDER ATTACK BOTH FROM DEMOCRATIC AFRICANAMERICANS AND REPUBLICAN HISPANICS WHO SAY IT SHOULD BE ALTERED TO ASSURE MINORITIES THE MAXIMUM REPRESENTATION POSSIBLE IN A CASE FROM GEORGIA ALSO SLATED FOR ARGUMENT ON MONDAY THE JUSTICES WILL CONSIDER WHETHER LOCAL GOVERNMENTS SHOULD BE RESTRUCTURED IF MINORITY VOTERS HAVE NO REALISTIC CHANCE OF PUTTING A MEMBER OF THEIR OWN GROUP IN OFFICE UNDER SCRUTINY WILL BE RURAL BLECKLEY COUNTY'S UNUSUAL CONSOLIDATION OF ALL LEGISLATIVE AND EXECUTIVE POWER IN A SINGLE COMMISSIONER A POST NEVER HELD BY A BLACK AND NEVER LIKELY TO BE THESE CASES WILL POINT TOWARD THE RESOLUTION OF THE LEGAL AND MORAL DILEMMA OF WHETHER CIVIL RIGHTS STATUTES WERE INTENDED TO CREATE GROUP RIGHTS IN OTHER WORDS TO ASSURE OUTCOMES RATHER THAN OPPORTUNITIES SAYS STUART GERSON A SENIOR BUSH ADMINISTRATION JUSTICE DEPARTMENT OFFICIAL WHO SERVED BRIEFLY AS ACTING ATTORNEY GENERAL EARLY IN THE CLINTON ADMINISTRATION THE FLORIDA DISPUTE ILLUSTRATES THE PECULIAR NATURE OF TODAY'S VOTINGRIGHTS STRUGGLES AS WELL AS THE PARTISAN POLITICS THAT ALWAYS LURK JUST BELOW THE SURFACE OF SUCH LITIGATION STATE SEN DARYL JONES A LIBERAL AFRICANAMERICAN DEMOCRAT REPRESENTS A DISTRICT IN SOUTH DADE COUNTY WHOSE VOTING POPULATION IS 38 BLACK I'M LIVING PROOF THAT YOU DON'T HAVE TO HAVE MINORITY CONTROL TO ELECT AN AFRICANAMERICAN HE SAYS BUT SOME CIVILRIGHTS LAWYERS ARGUE THAT HIS DISTRICT SHOULD BE CHANGED TO SWEEP IN MORE BLACK VOTERS THE NAACP WANTS THE LINES OF THAT DISTRICT TO BE REDRAWN SO THAT IT IS A CONTROL' DISTRICT WITH AN AFRICANAMERICAN MAJORITY NOT MERELY AN INFLUENCE' DISTRICT SAYS CHARLES BURR A TAMPA LAWYER WHO REPRESENTS THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE THIS APPROACH CREATING SOCALLED MAJORITYMINORITY DISTRICTS WHENEVER AND WHEREVER POSSIBLE MAY UNDERCUT EFFORTS TO BUILD CROSSRACIAL COALITIONS WARNS MR JONES HE WOULD PREFER THAT THE NAACP CONCENTRATE ON CULTIVATING YOUNG LEADERS WHO CAN WIN BROAD SUPPORT STATE REP ART SIMON A LIBERAL WHITE DEMOCRAT PERSONIFIES ANOTHER PERPLEXING ASPECT OF THE FLORIDA CASE UNDER THE HOUSEREDISTRICTING PLAN HE HELPED DESIGN AND PUSH THROUGH THE LEGISLATURE MR SIMON'S SUBURBAN DISTRICT WEST OF MIAMI WOULD HAVE GONE FROM PREDOMINANTLY WHITE TO 50 ANGLO 50 HISPANIC IT WAS THE RIGHT THING TO DO HE SAYS IT'S WHAT THE VOTING RIGHTS ACT SHOULD BE ALL ABOUT CUBANAMERICANS HOWEVER INVOKED THE ACT TO PERSUADE A LOWER COURT TO ADOPT THEIR ALTERNATIVE PLAN UNDER WHICH MR SIMON'S NEATLY BALANCED DISTRICT WOULD BE WIPED OUT TO STRENGTHEN SURROUNDING HISPANICDOMINATED REPUBLICAN DISTRICTS IN THE GEORGIA CASE A FEDERAL APPEALS COURT IN ATLANTA SAID THE SINGLECOMMISSIONER SYSTEM UNLAWFULLY DILUTES THE VOTING RIGHTS OF BLACKS WHO COMPRISE ABOUT ONEFIFTH OF BLECKLEY COUNTY'S POPULATION OF 10400 THE APPEALS COURT ORDERED A TRIAL JUDGE TO CONSIDER IMPOSING A FIVEMEMBER BOARD OF COMMISSIONERS WITH ONE DISTRICT DRAWN TO ELECT A BLACK OFFICIAL IN HIS APPEAL TO THE SUPREME COURT THE INCUMBENT COMMISSIONER ARGUES THAT THE VOTING RIGHTS ACT IS NOT INTENDED TO ENSURE THAT NUMERICAL MINORITIES WIN ELECTIONS AND DOESN'T GUARANTEE THAT MINORITY VOTERS WILL AUTOMATICALLY BE ABLE TO ELECT MINORITY CANDIDATES THE COURT'S DECISIONS IN THESE CASES WILL BE CLOSELY WATCHED IN CONGRESS IN 1982 LAWMAKERS AMENDED THE VOTING RIGHTS ACT TO REJECT A SUPREME COURT DECISION THAT HAD INTERPRETED THE LAW AS PROHIBITING ONLY INTENTIONAL DISCRIMINATION AGAINST MINORITIES THE 1982 AMENDMENTS SAID THAT THE ACT WAS MEANT TO ADDRESS RESULTS AS WELL AS INTENT OUTLAWING RULES AND PRACTICES THAT CAUSE MINORITIES TO HAVE LESS OPPORTUNITY THAN OTHER MEMBERS OF THE ELECTORATE TO PARTICIPATE IN THE POLITICAL PROCESS AND TO ELECT REPRESENTATIVES OF THEIR CHOICE IT WAS THOSE AMENDMENTS THAT CATAPULTED RACE TO THE TOP OF THE REDISTRICTING AGENDA IN MANY STATES AFTER THE 1990 CENSUS MINORITIES WERE ELECTED IN RECORD NUMBERS TO FEDERAL AND STATE OFFICE IN 1992 BUT THE 1982 AMENDMENTS ALSO INJECTED A TENSION INTO THE LAW BETWEEN THE GOALS OF EQUAL OPPORTUNITY AND PREORDAINED RESULTS THE FUNDAMENTAL PROBLEM IS THAT NO ONE KNOWS FOR SURE WHAT THE ACT NOW MEANS SAYS MR SIMON 9310010130 931001 ECONOMY THREAT OF COLLAPSE IN WORLD OIL MARKET LED TO LANDMARK AGREEMENT FOR OPEC BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA THE FIRST SIGN THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAD SAVED THE WORLD OIL MARKET AND ITSELF FROM THE THREAT OF COLLAPSE THIS WEEK WAS THE SOUND OF CLAPPING THE APPLAUSE CAME FROM INSIDE A CLOSED MEETING OF THE OIL MINISTERS IT WAS BARELY AUDIBLE TO THE DELEGATES OUTSIDE WHO DIDN'T KNOW THAT OPEC PRESIDENT JEAN PING GABON'S OIL MINISTER HAD SPONTANEOUSLY RUSHED OVER TO HUG ALI AHMAD ALBAGHLI KUWAIT'S MINISTER BUT TO THE ASTUTE AMONG THEM THE MESSAGE RANG CLEAR AFTER THREE YEARS OF SINKING OIL PRICES WORLDWIDE AND FIVE DAYS OF TENSE TALKS HERE THE MINISTERS FINALLY HAD COME TO TERMS ON A LANDMARK AGREEMENT THAT NOT ONLY WOULD FIRM UP THE OIL MARKET BUT ALSO SAVE SOME OF THEIR COUNTRIES FROM FINANCIAL RUIN HAD THE MINISTERS FAILED TO REACH A CREDIBLE PRODUCTION ACCORD OIL PRICES COULD HAVE FALLEN BELOW 10 A BARREL SAID IRAN'S OIL MINISTER GHOLAMREZA AGHAZADEH IN AN INTERVIEW MOST LIKELY HE SAID THIS WOULD HAVE BEEN THE END OF OPEC THE AGREEMENT REACHED LATE WEDNESDAY AS PREVIOUSLY REPORTED SETS A PRODUCTION CEILING OF 245 MILLION BARRELS A DAY FOR ALL 12 OPEC MEMBER NATIONS FOR THE NEXT SIX MONTHS THAT WILL REDUCE THEIR TOTAL OUTPUT ONLY SLIGHTLY BUT PROMISES NEVERTHELESS TO TIGHTEN OIL SUPPLIES OVER THE PEAKUSE PERIOD OF THE NEXT TWO QUARTERS THAT SHOULD PUSH PRICES ABOVE THE CURRENT RANGE OF 15 TO 19 A BARREL ALTHOUGH THE REASONS WEREN'T KNOWN TO THE OTHER MINISTERS AT OPEC'S BREAKTHROUGH SESSION WEDNESDAY EVENING KUWAIT'S MR ALBAGHLI HAD JUST ANNOUNCED THAT THE EMIRATE WOULD ACCEPT THE PRODUCTION QUOTA OF TWO MILLION BARRELS A DAY THAT IT HAD BEEN STUBBORNLY REJECTING BUT THE MINISTERS DID KNOW THAT THE MOST SERIOUS CRISIS OPEC HAD FACED IN ITS 33YEAR HISTORY HAD JUST EASED INTERVIEWS YESTERDAY WITH OTHER MINISTERS AND DELEGATES BEFORE THEY DEPARTED FROM GENEVA AFTER THE STRENUOUS TALKS CONFIRMED THE WIDELY HELD CONVICTION THAT OPEC WAS ON THE BRINK OF CEASING TO BE A FUNCTIONING ORGANIZATION IT HAD IN FACT COME SO CLOSE TO DISASTER THAT HEADS OF STATE OF THREE OF ITS FIVE FOUNDING MEMBERS WERE DRAWN INTO THE NEGOTIATIONS AT THIS CRUCIAL MEETING THE TALKS OPENED OFFICIALLY LAST SATURDAY BY MONDAY IRAN'S PRESIDENT HASHEMI RAFSANJANI BRUSHED ASIDE THE TRADITIONAL RIVALRIES BETWEEN OPEC'S TWO LARGEST PRODUCERS TO PHONE SAUDI ARABIA'S KING FAHD AND APPEAL FOR HIS HELP IN STOPPING THE FALL IN OIL PRICES KUWAIT ALSO IS A LEADING MEMBER OF OPEC BUT IT HAS REMAINED OUTSIDE THE QUOTA SYSTEM PRODUCING AT WILL AFTER REJECTING ITS ALLOTMENT EARLIER THIS YEAR TO KEEP OPEC FUNCTIONING KUWAIT HAD TO BE BROUGHT BACK INTO THE FOLD BUT BY WEDNESDAY WHEN THE TALKS WERE STALLED BY KUWAIT'S DEMANDS THE IRANIAN PRESIDENT PLACED ANOTHER CALL THIS TIME TO THE EMIR OF KUWAIT AND IN TURN THE KUWAITI RULER REMOVED THE LAST ROADBLOCK TO A SUCCESSFUL CONCLUSION OF THE OPEC TALKS BY INSTRUCTING MR ALBAGHLI TO ACCOMMODATE THE OTHERS WHAT REALLY BROUGHT THIS AGREEMENT ABOUT WAS POLITICAL REALISM AND THE ECONOMICS OF THE SITUATION SAID ALIRIO PARRA THE OIL MINISTER OF VENEZUELA ANOTHER FOUNDING MEMBER OF OPEC MR RAFSANJANI'S CALLS REFLECTED IRAN'S DESPERATE NEED FOR REVENUE THROUGH HIGHER OIL PRICES BUT THE IRANIAN PRESIDENT ALSO ENDED UP OBLIGATED TO THE SAUDI KING AND THE EMIR OF KUWAIT WHO HAVE GROWN NERVOUS OVER IRAN'S EMERGENCE AS A PERSIAN GULF POWERHOUSE OPEC HASN'T HAD PRODUCTION DISCIPLINE SINCE BEFORE THE PERSIAN GULF CRISIS IN RECENT MONTHS PRICES HAVE DROPPED 3 A BARREL COSTING THE 12 OPEC NATIONS AN ESTIMATED 6 BILLION SINCE MARCH EVEN THE RICHEST PERSIAN GULF COUNTRIES INCLUDING SAUDI ARABIA AND KUWAIT ARE RUNNING SIGNIFICANT FINANCIAL DEFICITS THEY TOO NOW URGENTLY NEED MORE REVENUE AND ARE WILLING TO HOLD THEIR PRODUCTION BELOW CAPACITY TO ACHIEVE HIGHER PRICES THERE IS LITTLE SPARE CAPACITY ELSEWHERE IN OPEC EXCEPT IN IRAQ STILL BANNED BY THE UNITED NATIONS FROM EXPORTING OIL WHILE CHEATING ON THE NEW PRODUCTION QUOTAS IS STILL POSSIBLE MANY OIL MINISTERS AS WELL AS INDUSTRY OFFICIALS NOW CONCLUDE THAT THAT ISN'T LIKELY 9310010129 931001 MONEY FUND ASSETS DECLINED 613 BILLION DURING LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS SLID 613 BILLION TO 56918 BILLION FROM 57531 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 647 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 207 BILLION TO 38715 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 407 TAXABLE MONEY MARKET FUNDS FELL BY 149 BILLION TO 30457 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS FELL BY 580 MILLION TO 8258 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 405 BILLION TO 18204 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 222 TAXABLE MONEY MARKET FUNDS FELL BY 408 BILLION TO 16131 BILLION ASSETS OF 52 TAXEXEMPT FUNDS ROSE BY 214 MILLION TO 2073 BILLION 9310010128 931001 MARTIN MARIETTA TO CUT 10 PLANTS AND 2000 JOBS PLAN TRIMS OPERATING COSTS 15 BILLION IN 5 YEARS WRAPS UP CONSOLIDATION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP SAID IT WILL CUT 2000 JOBS AND CLOSE 10 US PLANTS BY THE END OF 1994 COMPLETING THE CONSOLIDATION OF ITS OPERATIONS WITH THOSE OF THE GENERAL ELECTRIC CO AEROSPACE DIVISION IT PURCHASED LAST YEAR THE BIG BETHESDA MD DEFENSE AND AEROSPACE COMPANY SAID THE MOVES WILL REDUCE OPERATING COSTS BY 15 BILLION DURING THE NEXT FIVE YEARS THE COMPANY'S STOCK PRICE ROSE 375 CENTS TO 89 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WHEN THE ACQUISITION OF THE GE DIVISION WAS ANNOUNCED LAST NOVEMBER THE COMBINED OPERATIONS EMPLOYED 97000 WORKERS BUT THE WORK FORCE HAS BEEN SHRINKING RAPIDLY SINCE THEN REFLECTING LOWER MILITARY SPENDING IN THE US AND ABROAD AFTER REDUCTIONS IN THE LATEST ANNOUNCEMENT ABOUT 15000 JOBS WILL HAVE BEEN ELIMINATED SINCE THE ACQUISITION MORE LAYOFFS COULD ARISE AFTER 1994 IF THE DEFENSE BUDGET CONTINUES TO BE SIGNIFICANTLY CUT OR IF COMPANY DIVISIONS ARE UNABLE TO REMAIN COMPETITIVE IN THEIR MARKETS CHAIRMAN NORMAN AUGUSTINE SAID IN A STATEMENT STILL A THOMAS YOUNG PRESIDENT AND CHIEF OPERATING OFFICER SAID IN AN INTERVIEW THAT THE CUTS WILL MAKE THE MANUFACTURER OF SATELLITES MISSILES ORDNANCE AND ELECTRONIC DEFENSE SYSTEMS MORE COMPETITIVE WE WILL HAVE THE LOWEST CORPORATE OVERHEAD THAT WE WILL HAVE HAD IN MODERN TIMES SAID MR YOUNG THAT WOULD IMPROVE COMPANY PROFITS ON FIXEDPRICE CONTRACTS AND WOULD BENEFIT THE GOVERNMENT ON OTHER CONTRACTS AND WOULD ALLOW MARTIN MARIETTA TO WIN MORE CONTRACTS BY SUBMITTING LOWER COMPETITIVE BIDS HE SAID THE NEW CONSOLIDATION AT MARTIN MARIETTA SHOULD SEND A MAJOR MESSAGE TO RIVALS IN THE INDUSTRY THAT TOUGHER COMPETITION IS AHEAD ONCE THE CLOSINGS ARE COMPLETE THE COMPANY WILL HAVE ELIMINATED 20 OF THE PLANT AND OFFICE SPACE IT HOLDS TODAY IN ADDITION TO THE OWNED PLANTS AND OFFICES BEING CLOSED MARTIN MARIETTA ALSO WILL ELIMINATE SUBSTANTIAL AMOUNTS OF LEASED SPACE THE COMPANY WILL SHUT FORMER GE OPERATIONS IN FLORIDA MASSACHUSETTS NEW JERSEY AND PENNSYLVANIA AND CLOSE MARTIN MARIETTA FACILTIES IN MARYLAND AND COLORADO HOWEVER 62 OF THE PLANT SPACE BEING CLOSED HAS BEEN OPERATED BY MARTIN MARIETTA AMONG THE CONSOLIDATIONS THE INFORMATION SERVICES DIVISIONS OF BOTH COMPANIES HAVE BEEN COMBINED UNDER A FORMER GE UNIT BASED IN CHERRY HILL NJ MR YOUNG SAID THE COMBINED INFORMATION SERVICES OPERATION OF THE NEW COMPANY WILL QUALIFY TO BID ON ABOUT 15 BILLION IN NEW CONTRACTS THAT NEITHER THE SEPARATE GE OR MARTIN MARIETTA UNITS COULD HAVE BID ON BEFORE ONE EXAMPLE HE SAID IS A MAJOR SERVICES CONTRACT COMING UP AT THE JOHNSON SPACE CENTER IN HOUSTON OTHER SUCH CONSOLIDATIONS ARE ORDNANCE WEAPONS SONAR SENSORS AND LAUNCHSYSTEMS OPERATIONS MR YOUNG CONFIRMED THAT THE COMPANY'S CONSOLIDATION REVIEW ENCOUNTERED INTENSE LOBBYING BY CONGRESSIONAL REPRESENTATIVES FOR MANY COMMUNITIES INVOLVED AND PROMPTED SOME CITIES TO OFFER INCENTIVES TO KEEP THEIR PLANTS OPEN HOWEVER HE SAID THE COMPANY TRIED TO STAY FOCUSED ON EFFICIENCY IMPROVEMENTS AMONG THOSE GAINS TOUTED BY MR YOUNG WAS THAT THE SIZE OF MARTIN MARIETTA'S CORPORATE STAFF WILL INCREASE 20 WHILE THE SIZE OF THE COMPANY HAS ROUGHLY DOUBLED WITH THE MERGER 9310010127 931001 INTERNATIONAL JAPAN SAYS RICE IMPORTS WON'T BECOME PERMANENT TOKYO JAPAN SAID IT WOULD PERMIT EMERGENCY RICE IMPORTS BUT THE AGRICULTURE MINISTER STRESSED THAT THE MOVE WAS AN EXCEPTIONAL STEP TO COVER ITS WORST HARVEST SINCE WORLD WAR II FOLLOWING THE ANNOUNCEMENT WHICH WAS EXPECTED A US EMBASSY SPOKESMAN IN TOKYO SAID THE CURRENT RICE SHORTAGE OFFERS AN OPPORTUNITY FOR THE JAPANESE GOVERNMENT TO FULFILL A CENTRAL GOAL OF WORLD TRADE NEGOTIATIONS BY LIFTING THE RICE IMPORT BAN AND OPEN THE DOOR TO HIGHQUALITY US RICE BUT THE JAPANESE MINISTER EIJIRO HATA INSISTED TOKYO HAS NO INTENTION OF ALTERING ITS BAN ON FOREIGN RICE JOHN ROBERTS DIRECTOR OF THE CALIFORNIA RICE INDUSTRY ASSOCIATION SAID GROWERS IN THE STATE COULD SUPPLY 300000 TO 400000 METRIC TONS OF HIGHQUALITY JAPONICA RICE TO JAPAN TOSHIHARU NISHIGUCHI OF THE RICE DATA BANK CONSULTING COMPANY ESTIMATED THE MARKET PRICE FOR RICE FROM THAILAND COULD JUMP 25 TO 300 A METRIC TON AS A RESULT OF JAPAN'S DECISION MR HATA SAID JAPAN WILL IMPORT 200000 METRIC TONS OF RICE THROUGH DECEMBER A TOTAL FAR BELOW THE QUANTITY MANY ANALYSTS SAID WOULD ULTIMATELY BE NEEDED TO MAKE UP FOR THE SHORTFALL 9310010126 931001 WHO'S NEWS NATIONAL GYPSUM CO CEO RESIGNS TO TAKE SONOCO PRODUCTS POST CHARLOTTE NC PETER C BROWNING 52 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NATIONAL GYPSUM CO A GYPSUM WALLBOARD MAKER MR BROWNING WILL SERVE AS EXECUTIVE VICE PRESIDENT AT PACKAGING MAKER SONOCO PRODUCTS CO IN HARTSVILLE SC IT'S A LARGER COMPANY IN AN INDUSTRY I UNDERSTAND MR BROWNING SAID ADDING THAT HE HAS WORKED IN THE PACKAGING INDUSTRY FOR 25 YEARS IT'S NOT A REFLECTION OF MY FEELINGS TOWARD NATIONAL GYPSUM AND ITS PROSPECTS THIS JULY THE COMPANY EMERGED FROM THREE YEARS UNDER CHAPTER 11 PROTECTION OF FEDERAL BANKRUPTCY COURTS MR BROWNING WAS PROMOTED TO THE CHIEF EXECUTIVE JOB IN OCTOBER 1990 THE SAME MONTH THE COMPANY FILED FOR CHAPTER 11 PROTECTION THE COMPANY HAD BEEN HURT BY 1 BILLION IN DEBT FALLING GYPSUM PRICES AND THE SEVERE COSTS OF ASBESTOS LIABILITY CASES AFTER THE SUMMER THE COMPANY SAID IT CARRIED 100 MILLION IN DEBT AND 250 IN EQUITY THE COMPANY SAID IT SET UP A FUND OF MORE THAN 700 MILLION TO COVER ASBESTOS CLAIMS AUTINO O MARAIA 62 WAS NAMED INTERIM OPERATING OFFICER WHILE THE COMPANY CONDUCTS A SEARCH FOR A CHIEF EXECUTIVE MR MARAIA SERVES AS SENIOR VICE PRESIDENT OF SALES AND MARKETING 9310010125 931001 CORPORATE FOCUS PREDICTING A THIRDPERIOD LOSS USAIR PLANS COST CUTS FARE WARS ARE EXPECTED TO LEAVE CARRIER IN THE RED AT THE CLOSE OF 1993 BY SUSAN CAREY AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL USAIR FACING AN INVASION OF LOWCOST CARRIERS ON ITS TURF YESTERDAY SHOWED THE PRICE IT MUST PAY TO STAY COMPETITIVE BUFFETED BY AGGRESSIVE PRICE DISCOUNTING BY LOWCOST CARRIERS SUCH AS SOUTHWEST AIRLINES THE NATION'S SIXTH LARGEST AIRLINE WHICH HAD BET IT WOULD SEE A TURNAROUND IN 1993 DISCLOSED THAT IT EXPECTS A LOSS OF 180 MILLION IN THE THIRD QUARTER IT ALSO ANNOUNCED PLANS TO REDUCE OPERATING COSTS BY 200 MILLION NEXT YEAR THE THIRDQUARTER RED INK WOULD SWELL ITS LOSS THIS YEAR TO ABOUT 235 MILLION AND RULE OUT A PROFIT FOR 1993 ALTHOUGH THE ANTICIPATED LOSS IS WELL BELOW THE YEAREARLIER 123 BILLION USAIR SHARES CLOSED AT 12625 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE CARRIER SAID IT WILL CUT 2500 JOBS OR 54 OF ITS WORK FORCE BY MID1994 ITS THIRDQUARTER LOSS WILL INCLUDE A CHARGE OF 75 MILLION RELATED TO THE JOB CUTS A YEAR EARLIER USAIR REPORTED A NET LOSS OF 553 MILLION THE CARRIER IS A UNIT OF USAIR GROUP INC BASED IN ARLINGTON VA SINCE JANUARY IT HAS BEEN 246OWNED BY BRITISH AIRWAYS THE CARRIER HASN'T SEEN AN ANNUAL PROFIT SINCE 1988 THE STEEP FARE DISCOUNTS BY LOWCOST CARRIERS HAVE FORCED USAIR AND ITS LARGER COMPETITORS TO MATCH THE LOW FARES AND START ATTACKING THEIR COST STRUCTURES WE ARE WITNESSING A RESURGENCE OF LOWFARE COMPETITION FROM AIRLINES WHOSE COST STRUCTURES ENABLE THEM TO OFFER THE LOWER PRICES THAT CONSUMERS DEMAND SAID SETH SCHOFIELD USAIR GROUP CHA CHIEF EXECUTIVE FOR USAIR TO REMAIN COMPETITIVE IN THE NEW REALITIES OF THE MARKETPLACE WE MUST REDUCE COSTS AND FIND WAYS TO RESTRUCTURE OUR ORGANIZATION FOR 10 MONTHS USAIR HAS BEEN WORKING ON A PLAN TO OFFER A NEW LOWERCOST SERVICE ON CERTAIN FLIGHTS OF 500 MILES OR LESS EXECUTIVES WON'T SAY HOW THEY PLAN TO ACHIEVE THE NECESSARY SAVINGS ON THE ROUTES WHICH ARE A THIRD OF USAIR'S DOMESTIC NETWORK OR WHEN THEY WILL IMPLEMENT THE PROGRAM THEY ALSO WON'T SAY WHETHER THEY WILL ASK EMPLOYEES FOR MORE WAGE CONCESSIONS OR WORKRULE CHANGES OR WHETHER USAIR WILL REJIGGER ITS ROUTE NETWORK OR CREATE A UNIT TO HANDLE SUCH FLIGHTS IN THE INTERIM WE'RE SIMPLY GOING TO BE COMPETITIVE WITH THE LOW PRICES OFFERED BY THE COMPETITION SAYS W THOMAS LAGOW EXECUTIVE VICE PRESIDENTMARKETING BUT USAIR REMAINS A HIGHCOST CARRIER VULNERABLE TO A NEW BREED OF US COMPETITORS ITS DENSE ROUTE NETWORK IN THE NORTHEAST AND IN FLORIDA PRIMARILY IS MADE UP OF SHORT ROUTES WHICH ARE MORE EXPENSIVE TO OPERATE AFTER YEARS OF PAYING ITS WORKERS WELL AND FLYING IN HIGHYIELD MARKETS USAIR WOUND UP WITH SOME OF THE HIGHEST WAGES IN THE INDUSTRY IT ALSO FLIES MANY TYPES OF PLANES HAS MULTIPLE HUBS AND HAS HEADQUARTERS STAFF IN THREE CITIES USAIR HAS HAD ITS NOSE BLOODIED BY SOUTHWEST THE LEADING LOWCOST CARRIER AFTER SOUTHWEST ENTERED THE CALIFORNIA IN 1990 AND 1991 USAIR SUFFERED HEAVY LOSSES AND WAS FORCED TO CUT ITS WEST COAST SHORTHAUL FLIGHTS BY NEARLY 66 AND DROP SERVICE TO EIGHT CITIES WHEN ASKED WHY USAIR IS MOVING SLOWLY MICHAEL R SCHWAB EXECUTIVE VICE PRESIDENTOPERATIONS SAYS THIS IS A FUNDAMENTAL CHANGE FOR THIS AIRLINE HE ADDS THAT USAIR ISN'T TRYING TO REACT TO SOUTHWEST OR CONTINENTAL AIRLINES WHICH HAS MOVED INTO SOME OF USAIR'S MARKETS WITH A LOWPRICED SERVICE CALLED CALITE NEVERTHELESS THE PRESSURE IS ON NO AIRLINE CAN CONTINUE TO LOSE MONEY SAYS MR SCHWAB WHILE USAIR'S REVENUE ROSE 54 IN THE FIRST HALF OF 1993 COMPARED WITH THE YEAREARLIER HALF WE HAVEN'T TURNED THAT CORNER HE SAYS WE CAN'T WAIT MUCH LONGER TO TURN THAT CORNER IT'S NOT AS IF USAIR HASN'T TAKEN STEPS TO TRY TO EASE ITS PROBLEMS IT WAS AMONG THE FIRST US AIRLINES TO DEFER DELIVERIES OF AIRCRAFT ON ORDER AND TO CUT CAPITAL SPENDING IT ALSO WAS EARLY TO NEGOTIATE WAGE CUTS AND PRODUCTIVITY INCREASES WITH ITS EMPLOYEES THE WORKRULE CHANGES ARE PERMANENT AND ARE EXPECTED TO SAVE ABOUT 190 MILLION A YEAR ON THE OTHER HAND THE PAY CUTS OF 170 MILLION WERE FOR 12 MONTHS ONLY IN THE CASE OF USAIR'S PILOTS AND NONCONTRACT WORKERS WAGES SNAPPED BACK TO PREVIOUS LEVELS IN JULY MECHANICS' WAGES WILL BE RESTORED THIS MONTH FLIGHT ATTENDANTS' WAGES WILL DO SO IN FEBRUARY PROBABLY USAIR'S BOLDEST MOVE WAS TO SNARE BRITISH AIR AS A SHAREHOLDER THE PROFITABLE UK AIRLINE PAID 400 MILLION FOR ITS STAKE AND THE TWO CARRIERS NOW HAVE JOINT MARKETING AND FREQUENTFLIER PROGRAMS WALL STREET'S ASSESSMENT OF USAIR PERKED UP AFTER THE BRITISH AIR INVESTMENT BUT MANY ANALYSTS ARE WAITING FOR THE DEAL TO BEAR TANGIBLE FRUIT SOME IN THE INDUSTRY WONDER IF THE USAIRBRITISH AIR ALLIANCE ISN'T ONESIDED IT HELPS USAIR BUT IT HELPS BRITISH AIRWAYS MANY MANY TIMES MORE SAYS WES KALDAHL A FORMER AMERICAN AIRLINES EXECUTIVE WHO NOW CONSULTS FOR AERO ADVISERS INC I DON'T THINK USAIR'S INTERNATIONAL SIDE WAS A BIG DEAL FOR THEM BUT THE US WHICH REPRESENTS 40 OF THE AIRTRAVEL MARKET CLEARLY IS A BIG DEAL FOR BRITISH AIR AND THE UK AIRLINE IS INSULATED FROM USAIR'S LOSSES BY THE WAY BRITISH AIR ACCOUNTS FOR ITS CONVERTIBLE PREFERRED USAIR STOCK SAYS KEVIN MURPHY AN AIRLINE ANALYST FOR MORGAN STANLEY & CO MOREOVER AS OTHER BIG EUROPEAN CARRIERS ALLY THEMSELVES WITH US PARTNERS USAIR'S COMPETITIVE ADVANTAGES MORE TRANSFER TRAFFIC THE JOINT MILEAGE PROGRAM AND CODESHARES ON CERTAIN ROUTES WILL DISAPPEAR HE SAYS BRITISH AIR SAYS TEAMS ARE GRAPPLING WITH HOW THE TWO CAN SAVE MONEY AND BOOST REVENUE BY WORKING TOGETHER MEANWHILE SOUTHWEST'S ASSAULT AGAINST USAIR IN THE EAST BEGAN SEPT 15 WITH FLIGHTS TO USAIR'S BALTIMORE HUB THE FARE WAR HAS FORCED TICKET PRICES AS LOW AS 19 CONTINENTAL TODAY BEGINS ITS CALITE PROGRAM OF CHEAP FREQUENT SERVICES BETWEEN 14 CITIES MOSTLY IN THE SOUTHEAST CONTINENTAL TARGETED USAIR'S TURF IF OTHER PEOPLE HAVE HIGHER COSTS AND HIGHER COSTS PER SEGMENT WE'LL GO FISH THERE SAYS DON VALENTINE CONTINENTAL'S SENIOR VICE PRESIDENT FOR MARKETING AND TWO NEW CARRIERS HAVE ASKED THE DEPARTMENT OF TRANSPORTATION FOR LICENSES TO SERVE SEVERAL DESTINATIONS FROM PITTSBURGH USAIR'S MAJOR HUB USAIR HAS A FRANCHISE HOWEVER THE CARRIER OFFERS THE MOST DAILY DEPARTURES FROM PITTSBURGH PHILADELPHIA NEW YORK'S LAGUARDIA WASHINGTON'S NATIONAL BALTIMORE BOSTON CHARLOTTE AND TAMPA IT OPERATES THE USAIR SHUTTLE ON THE EAST COAST AND IS THE LARGEST AIRLINE ON INTRAFLORIDA FLIGHTS AND ON NONSTOP SERVICES LINKING THE NORTHEAST TO FLORIDA BUT THESE DAYS CUSTOMER DEMAND IS FOR NOFRILLS LOWERCOST OPTIONS IN SOME MARKETS SAYS MR SCHWAB THE EXECUTIVE VICE PRESIDENTOPERATIONS WE PROVIDE A SUPERIOR PRODUCT ON 450MILE SECTORS BUT CONSUMER EXPECTATIONS ARE DIFFERENT NOW THAN A FEW YEARS AGO 9310010124 931001 LAW TWO CONCERNS CAN'T CLAIM RIGHTS TO TROLLDOLL DESIGN NEW YORK A TRADEMARK DISPUTE BETWEEN RIVAL TROLLDOLL MAKERS WAS SETTLED BY A MANHATTAN FEDERAL DISTRICT COURT WHICH RULED THAT NEITHER COULD CLAIM THE PUGNOSED DESIGN AS ITS OWN EFS MARKETING INC A CLOSELY HELD TOY AND GIFT COMPANY IN FARMINGDALE NY SUED RUSS BERRIE & CO AND ITS CHAIRMAN RUSSELL BERRIE ALLEGING THAT THE OAKLAND NJ COMPANY'S TROLL MIRRORED THE EFS DOLL THE SUIT SOUGHT TO BLOCK RUSS BERRIE SALES AND ALSO SOUGHT PROFITS AND DAMAGES HOWEVER JUDGE JOHN F KEENAN FOUND THAT BOTH TROLL PRODUCT LINES WERE SIMILAR TO DESIGNS BY DANISH WOODCARVER THOMAS DAM SOLD IN THE 1960S AND ON WHICH A COPYRIGHT WAS DECLARED INVALID IN MID1965 THE TROLLS ARE NOW IN THE PUBLIC DOMAIN THE COURT SAID MR BERRIE WHOSE COMPANY MADE 250 MILLION IN SALES FROM THE TROLL DOLL IN 1992 SAID HE DOESN'T EXPECT TO BE HURT BY THE RULING IF THIS HAD HAPPENED TWO OR THREE YEARS AGO IT COULD HAVE BEEN DAMAGING BUT TODAY TROLLS ARE JUST NOT WHAT THEY WERE IN THE PAST I DON'T THINK ANYONE IS GOING TO TRY TO GET INTO THE TROLL MARKET TODAY STILL HE SAID HE PLANS TO APPEAL THE RULING EFS OFFICIALS COULDN'T BE REACHED FOR COMMENT 9310010123 931001 TECHNOLOGY APPLE REPORTS BRISK SALES OF ITS HANDHELD COMPUTER CUPERTINO CALIF APPLE COMPUTER INC SAID SALES OF ITS NEWTON MESSAGEPAD HANDHELD COMPUTERS HIT 50000 IN THE US AND EUROPE SINCE THE PRODUCT WAS INTRODUCED AUG 2 WE'RE AHEAD OF WHERE WE THOUGHT WE'D BE SAID GASTON BASTIAENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION ANALYSTS HAVE PREDICTED SOME 70000 OF THE LITTLE COMPUTERS WILL BE SOLD THIS YEAR WITH NEWTON DOMINATING THE MARKET WHILE EXPRESSING SURPRISE AT NEWTON'S STRONG START SEVERAL INDUSTRY EXPERTS SAID THE COMPUTER'S PRICE BETWEEN 700 AND 1000 AND THE NEED FOR AN EXTERNAL MODEM TO HOOK IT UP FOR ELECTRONIC MAIL AND OTHER OUTSIDE COMMUNICATIONS WILL QUICKLY SLOW SALES THIS IS A PRODUCT THAT IS JUST NOT READY FOR PRIME TIME YET SAID CHRISTOPHER GOODHUE ANALYST AT GARTNER GROUP A STAMFORD CONN MARKETING CONCERN MR GOODHUE AND OTHERS SAID GADGET FREAKS AND THOSE LOYAL TO APPLE PRODUCTS HAD GIVEN THE NEWTON A JUMPSTART MR BASTIAENS SAID NEARLY 90 OF THE NEWTON PURCHASERS HAVE PURCHASED EXTERNAL MODEMS AND CONNECTOR KITS TO TAKE ADVANTAGE OF NEWTON'S ELECTRONIC MAIL CABABILITY THE COMPANY WILL RELEASE ITS EMAIL SOFTWARE NEXT MONTH HE SAID 9310010122 931001 CREDIT RATINGS USX MARATHON OIL DEBT RATINGS ARE CUT BY STANDARD & POOR'S NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON ABOUT 6 BILLION IN OUTSTANDING DEBT OF USX CORP AND ITS MARATHON OIL CO SUBSIDIARY THE RATING FIRM DROPPED THE COMPANIES' SENIOR DEBT TO DOUBLEBPLUS FROM TRIPLEBMINUS S&P ALSO LOWERED ITS RATINGS ON USX'S SUBORDINATED DEBT AND PREFERRED STOCK TO DOUBLEBMINUS FROM DOUBLEBPLUS AND THE RATING ON USX'S COMMERCIAL PAPER FELL TO SINGLEB FROM SINGLEA3 AND THE RATING WAS WITHDRAWN ANTICIPATED IMPROVEMENT IN EARNINGS AND TEMPORARILY LOWER INVESTMENT REQUIREMENTS SHOULD ENABLE SOME DEBT REDUCTION OVER THE NEXT TWO TO THREE YEARS BUT FINANCIAL LEVERAGE IS EXPECTED TO REMAIN EXTREMELY AGGRESSIVE PARTICULARLY TAKING ACCOUNT OF THE COMPANY'S BURDENSOME RETIREE MEDICAL LIABILITIES AND LITIGATION CONTINGENCIES S&P SAID PITTSBURGHBASED USX A STEEL PETROLEUM AND NATURAL GAS CONCERN DECLINED TO COMMENT 9310010121 931001 FINANCING BUSINESS ALLERGAN INC ALLERGAN INC IRVINE CALIF SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING AS MUCH AS 200 MILLION OF SENIOR DEBT SECURITIES PROCEEDS FROM ANY OFFERING WOULD BE USED FOR GENERAL CORPORATE PURPOSES ALLERGAN MAKES THERAPEUTIC PRODUCTS FOR EYE CARE AND SKIN CARE 9310010120 931001 ROCHESTER TELEPHONE PURCHASE ROCHESTER NY ROCHESTER TELEPHONE CORP SAID IT COMPLETED THE ACQUISITION OF MID ATLANTIC TELECOM A WASHINGTONBASED LONGDISTANCE PROVIDER TERMS WEREN'T DISCLOSED 9310010119 931001 CHICAGO STOCK EXCHANGE PLAN CHICAGO THE CHICAGO STOCK EXCHANGE SAID IT PLANS TO INTRODUCE A SECURITY REPRESENTING A PORTFOLIO OF THE 20 STOCKS THAT MAKE UP THE MAJOR MARKET INDEX KNOWN AS THE CHICAGO STOCK BASKET THE NEW SECURITY IS EXPECTED TO BEGIN TRADING OCT 15 PENDING SECURITIES AND EXCHANGE COMMISSION APPROVAL 9310010118 931001 INTERNATIONAL GRUPO TELEVISA OFFERING MEXICO CITY THE CONTROLLING SHAREHOLDER OF MEXICAN MEDIA GIANT GRUPO TELEVISA SA SAID IT WILL SELL AS MUCH AS 5 OF THE COMPANY'S CAPITAL SHARES IN AN INTERNATIONAL OFFERING TELEVISA LAUNCHED ITS FIRST INTERNATIONAL OFFERING IN DECEMBER 1991 BUT RESTRICTED SALES TO INSTITUTIONAL AND WELLHEELED INVESTORS UNDER A SPECIAL SECTION OF US SECURITIES LAW WITH LESS RIGOROUS ACCOUNTING AND DISCLOSURE RULES THE LATEST SALE IS EXPECTED TO BE A FULL PUBLIC OFFERING FOLLOWED BY POSSIBLE LISTING ON THE NEW YORK STOCK EXCHANGE TELEVISA MEANWHILE SAID ITS BOARD WOULD RESTRUCTURE EQUITY RESULTING IN A 3FOR1 STOCK SPLIT CAPITAL SHARES WILL BE INCREASED TO 927 MILLION SHARES FROM THE CURRENT 309 MILLION THE RESTRUCTURING IS SUBJECT TO A VOTE BY SHAREHOLDERS 9310010117 931001 CANADA'S GDP FELL IN JULY AS OUTPUT SLID AMONG MANUFACTURERS OTTAWA CANADA'S GROSS DOMESTIC PRODUCT DECLINED 02 IN JULY FROM JUNE MAINLY AS A RESULT OF A 12 DROP IN MANUFACTURING OUTPUT STATISTICS CANADA A GOVERNMENT AGENCY SAID THE JULY DECLINE FOLLOWED AVERAGE MONTHLY GDP GROWTH OF 02 IN THE APRILJUNE PERIOD AND AVERAGE GROWTH OF 05 IN THE FIRST THREE MONTHS OF THIS YEAR GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION AMONG MANUFACTURERS TRANSPORTATION EQUIPMENT PRODUCERS SHOWED THE BIGGEST DROP IN OUTPUT IN JULY CUTTING THEIR PRODUCTION BY 35 IT WAS THEIR THIRD PRODUCTION CUTBACK IN FOUR MONTHS PRODUCTION OF ELECTRONIC PRODUCTS ALSO SHOWED A SUBSTANTIAL DECLINE IN JULY DROPPING 32 FROM JUNE ANNA GUTHRIE TORONTO DOMINION BANK'S SENIOR ECONOMIST SAID THE JULY DOWNTURN WAS PARTLY A RESPONSE TO SLOWER US GROWTH IN THE FIRST HALF OF THIS YEAR MANY CANADIAN BUSINESSES RELY HEAVILY ON THE US MARKET WHICH TAKES MORE THAN THREEQUARTERS OF CANADA'S TOTAL EXPORTS MS GUTHRIE PREDICTED THAT CANADA'S ECONOMY WOULD SHOW STRONGER GROWTH IN THE NEXT TWO YEARS LED BY EXPORTS AND BUSINESS INVESTMENT SHE SAID CANADA'S GDP WOULD RISE 25 THIS YEAR 33 IN 1994 AND 36 IN 1995 9310010116 931001 PEPPERAND SALT EVERY TIME WE'D PASS HIS WAY JUST DON'T MESS WITH IT IT'S OPENING A CAN OF WORMS 9310010115 931001 MEDIA A NEW PLAYER IS RATTLING THE WORLD OF PAY TELEVISION BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL THE PAYTV BUSINESS IS BRACING FOR JOHN MALONE'S ENCORE YESTERDAY LIBERTY MEDIA CORP'S UPSTART ENCORE PAYTV NETWORK ANNOUNCED THE LARGEST FILM PACKAGE DEAL IN HOLLYWOOD HISTORY AGREEING TO BUY MOVIES FOR THE NEXT DECADE FROM WALT DISNEY CO'S TOUCHSTONE PICTURES MIRAMAX AND HOLLYWOOD PICTURES UNITS WITH MOST OF THE PURCHASES BEGINNING IN 1997 THE DEAL WON'T INCLUDE DISNEY'S ANIMATED AND FAMILY FILMS SUCH AS THE RECENT HIT ALADDIN THE AGREEMENT WITH AN ESTIMATED VALUE OF MORE THAN 1 BILLION FOLLOWS A YEARLONG BUYING SPREE IN HOLLYWOOD BY ENCORE WHICH ALREADY HAS FOUR MILLION SUBSCRIBERS FOR ONE PAY CABLE NETWORK AND PLANS TO LAUNCH SEVEN OTHER SPECIALIZED CHANNELS OVER THE NEXT YEAR WITH THE DISNEY DEAL AND OTHERS ENCORE IS ALSO THE FIRST REAL COMPETITOR TO EMERGE IN A DECADE IN THE PAYTV BUSINESS WHICH OFFERS CABLE SUBSCRIBERS MOVIES AND OTHER PROGRAMMING FOR A MONTHLY SUBSCRIPTION FEE THAT'S ADDED TO THE BASIC CABLE BILL PAY TV HAS ALWAYS BEEN DOMINATED BY TIME WARNER INC'S HOME BOX OFFICE INC WITH 234 MILLION SUBSCRIBERS TO TWO SERVICES ENCORE POSES THE BIGGEST THREAT TO VIACOM INC'S SHOWTIME WHICH IS A DISTANT RUNNERUP TO HBO AND HAS HAD EXCLUSIVE RIGHTS TO THE DISNEY UNITS' FILMS SINCE THE MID1980S ENCORE'S BIG PUSH IN PAY TV AND THE HUGE SUMS IT IS SPENDING ON MOVIE RIGHTS COMES AT A DIFFICULT TIME FOR THE INDUSTRY PAYTV NETWORK SUBSCRIPTIONS OVERALL HAVE BEEN STAGNANT FOR YEARS AND HBO AND SHOWTIME ARE CONSTANTLY STRUGGLING TO KEEP THE SUBSCRIBERS THEY HAVE MOREOVER PAY NETWORKS FACE GROWING COMPETITION FROM PAYPERVIEW WHICH ENABLES VIEWERS TO ORDER ONE MOVIE AT A TIME AND FROM THE BURGEONING NUMBER OF BASIC CABLE CHANNELS AROUND THE CORNER IS AN EVEN BIGGER THREAT MOVIES ON DEMAND FROM VAST ELECTRONIC LIBRARIES THE TIMING OF YESTERDAY'S ANNOUNCEMENT FURTHER HEIGHTENED THE TENSIONS IN THE PARAMOUNT COMMUNICATIONS INC TAKEOVER BATTLE WHICH IS BEING WAGED BY SHOWTIME PARENT VIACOM AND QVC NETWORK INC QVC IS PARTLY OWNED BY ENCORE PARENT LIBERTY MEDIA MR MALONE CHAIRMAN OF LIBERTY AND CHIEF EXECUTIVE OF CABLE GIANT TELECOMMUNICATIONS INC IS BEHIND AN AGREEMENT BY LIBERTY TO INVEST 500 MILLION TO BACK THE QVC BID TELECOMMUNICATIONS IS THE NATION'S LARGEST CABLE TV COMPANY WITH MORE THAN 10 MILLION SUBSCRIBERS ENCORE WAS LAUNCHED IN 1991 LARGELY ON CABLE SYSTEMS OWNED BY TCI TCI SUBSEQUENTLY SPUN OFF LIBERTY WHICH TOOK CONTROL OF THE ENCORE PAY SERVICE AND BEGAN EXPANDING IT AGGRESSIVELY SHOWTIME PRESIDENT WINSTON H COX LASHED OUT AT ENCORE CALLING ITS BACKERS A TCIENCORE CABAL THAT CAME RIDING IN AND GROSSLY OVERPAID FOR PRODUCT WE'VE GOT TO BELIEVE IT'S SOME KIND OF PREDATORY ACTION ON THEIR PART MR COX SAID SHOWTIME REFUSED TO MATCH ENCORE'S PRICE FOR THE DISNEY MOVIES ENCORE CHIEF EXECUTIVE JOHN SIE WHO OWNS THE REMAINING 10 STAKE IN ENCORE ACKNOWLEDGED THAT THE PAYTV MARKET IS VERY CROWDED CANTANKEROUS AND THAT ENCORE IS EMBARKED ON A HIGHRISK VENTURE NONETHELESS HE SAID ENCORE HAS A VISION OF HOW PAY TV SHOULD BE MARKETED IN THE 1990S THAT WILL LURE VIEWERS BACK IN PARTICULAR THE COMPANY WILL TARGET SUBSCRIBERS WHO CURRENTLY SPURN PAYTV SERVICES FOR EXAMPLE THERE ARE 60 MILLION CABLE HOMES BUT 38 MILLION OF THOSE DON'T BUY EXTRA PAY NETWORKS SAID MR SIE ALSO TARGETED WILL BE NINE MILLION SUBSCRIBERS WHO ARE HEAVY USERS BUYING MORE THAN ONE PAY SERVICE AFTER HBO SHOWTIME AND ITS SISTER SERVICE THE MOVIE CHANNEL COMPRISE THE BIGGEST PAYTV SERVICE WITH 76 MILLION AND 27 MILLION SUBSCRIBERS RESPECTIVELY DISNEY HAS ITS OWN FASTGROWING PAYTV NETWORK THE DISNEY CHANNEL WITH 71 MILLION SUBSCRIBERS BUT IT PRIMARILY AIRS FAMILY ENTERTAINMENT AND MOVIES UNDER THE WALT DISNEY LABEL SHOWTIME'S MR COX SAYS HIS COMPANY WOULD HAVE BEEN UNABLE TO JUSTIFY THE HIGH PRICE ENCORE AGREED TO PAY DISNEY FOR ITS FILMS HE WOULDN'T ELABORATE BUT PEOPLE FAMILIAR WITH THE SITUATION SAID ENCORE OFFERED 20 MORE THAN SHOWTIME THOUGH HE IS CONCERNED ABOUT THE IMPACT OF THE ENCORE DEAL MR COX SAYS SHOWTIME HAS A HEALTHY SUPPLY OF MOVIES FOR THE MOVIE STUDIOS ENCORE'S STRATEGY OF OFFERING HIGH PRICES IS OBVIOUSLY A BOON AND THEY ARE GLAD TO HAVE A THIRD BUYER IN THE MARKET HBO AND SHOWTIME HAVE BECOME TOUGHER IN NEGOTIATING MOVIE RIGHTS WITH THE STUDIOS IN RECENT YEARS AND THEY HAVE BEGUN SUPPLEMENTING THEIR SCHEDULE OF FEATURE FILMS WITH THEIR OWN MADEFORTV MOVIES AND ORIGINAL SERIES HBO EXPRESSED LITTLE CONCERN ABOUT ENCORE'S STRATEGY INDICATING ITS RIVAL SHOWTIME HAD THE MOST TO FEAR IT LOOKS LIKE THERE IS GOING TO BE A HELL OF A FIGHT FOR THE NO 2 POSITI IN PAYTV SAID MICHAEL FUCHS HBO CHAIRMAN AND CHIEF EXECUTIVE MR MALONE AND MR SIE INITIALLY LAUNCHED ENCORE WITH THE IDEA OF COMPLEMENTING RATHER THAN COMPETING WITH HBO AND SHOWTIME ENCORE LICENSED MOSTLY OLD MOVIES AND WASN'T COMPETING FOR FIRSTRUN MOVIES FROM THE MAJOR STUDIOS BUT EARLIER THIS YEAR THEY SHIFTED THAT STRATEGY STARTING TO BUY BIG STUDIO MOVIES LAST SPRING ENCORE SIGNED A FIVEYEAR EXCLUSIVE PACT TO BUY MOVIES FROM UNIVERSAL PICTURES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA ENCORE ALSO MADE WAVES AMONG THEATRICAL EXHIBITORS WHEN IT SIGNED AN AGREEMENT WITH CAROLCO PICTURES INC IN SEPTEMBER TO BUY AS MANY AS 20 MOVIES AS MANY AS FOUR OF THE FILMS MAY BE AIRED ON A PAYPERVIEW BASIS BEFORE THEATRICAL RELEASE THE FIRST TIME SUCH A STRATEGY WOULD BE USED STARTING IN JANUARY CABLE SYSTEMS AFFILIATED WITH ENCORE WILL BE ABLE TO OFFER THEIR CUSTOMERS TWO CHANNELS A PACKAGE OF RECENT MOVIES CALLED STARZ AND THE ORIGINAL ENCORE CHANNEL WITH OLDER MOVIES FOR BETWEEN 5 AND 6 MONTHLY IN JULY SUBSCRIBERS WILL BE OFFERED A NEW PACKAGE ALSO FOR 5 TO 6 MONTHLY THAT WILL INCLUDE SIX DIFFERENT THEME CHANNELS WESTERNS LOVE STORIES MYSTERIES ACTION/ADVENTURE TRUE STORIES AND TWEENS' A CHANNEL FOR EIGHT TO 16 YEAR OLDS MR SIE ARGUES THAT THE STRATEGY OF OFFERING THEMED CHANNELSOR WHAT HE DUBS MOOD ON DEMANDWILL BE FAR MORE CONSUMER FRIENDLY THAN PAY PER VIEW AND VIDEO ON DEMAND HE SAYS THAT IT COSTS 3 TO 4 TO BUY JUST ONE PAYPERVIEW MOVIE AND THAT SORTING THROUGH A VIDEOONDEMAND MENU OF HUNDREDS OF MOVIES WILL AGGRAVATE CONSUMERS MR SIE ACKNOWLEDGED THAT HIS COMPANY IS PAYING HEFTRY PRICES TO STOCK ITS CHANNELS WITH FILMS IT'S NOT CHEAP HE SAID BUT ON THE OTHER HAND IF WE GET BROAD DISTRIBUTION IT WILL BE PROFITABLE FOR US 9310010114 931001 WHO'S NEWS DIGITAL PRODUCTS CORP DIGITAL PRODUCTS CORP POMPANO BEACH FLA RICHARD ANGULO 40 YEARS OLD WAS NAMED CHIEF EXECUTIVE AND PRESIDENT OF THIS COMPANY WHICH MAKES SOFTWARE FOR THE CONSTRUCTION AND FINANCIAL INDUSTRIES AND ELECTRONICANKLE BRACELETS FOR CONVICTS SENTENCED TO HOME CONFINEMENT MR ANGULO WHO SERVED AS NATIONAL DIRECTOR OF SALES AND MARKETING SUCCEEDS THEODORE M SABARESE 53 AS REPORTED MR SABARESE RESIGNED LAST MONTH FOLLOWING HIS INDICTMENT BY THE US ATTORNEY'S OFFICE IN NEWARK NJ ON FEDERAL CHARGES OF DEFRAUDING BANKS 9310010113 931001 MATSUSHITA ELECTRIC EXPANSION TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO SAID IT ESTABLISHED A PRODUCTION SUBSIDIARY IN CHINA TO MASSPRODUCE AUDIO GOODS FOR THE EUROPEAN AND SOUTHEAST ASIAN MARKETS AND LATER MEET DOMESTIC DEMAND THERE THE UNIT MATSUSHITA AUDIO XIAMEN CO IS TO BEGIN CONSTRUCTING A FUJIAN PROVINCE PLANT IN MIDDECEMBER AND COMMENCE MANUFACTURING IN OCTOBER 1994 A SPOKESMAN SAID HE SAID THE FACTORY AT FIRST WILL TURN OUT RADIOS AND WALKABOUTSTYLE PERSONAL STEREOS AT THE RATE OF A COMBINED 100000 UNITS A MONTH 9310010112 931001 INTERNATIONAL WORLD ECONOMY GATT'S URUGUAY ROUND OF TALKS SEEM HEADED FOR FAILURE AFTER SEVEN YEARS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEVEN TEDIOUS YEARS OF NEGOTIATIONS TOWARD NEW INTERNATIONAL TRADE TERMS ARE ABOUT TO END AND UNLESS SOMETHING SNAPS SOON THEY WILL END IN FAILURE IF SO THAT WOULD BE A BAD DAY'S WORK FOR MANKIND LAMENTS PETER SUTHERLAND THE SOMETIMES ELATED SOMETIMES DEPRESSED IRISHMAN WHO SHEPHERDS THE TALKS AS DIRECTOR GENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FAILURE WOULD BE A SORRY CONCLUSION TO BARGAINING LAUNCHED BACK IN 1986 AT PUNTA DEL ESTE GIVING THE NEGOTIATIONS THE NAME URUGUAY ROUND THEY ARE MEANT TO ABOLISH NUMEROUS OBSTACLES TO INTERNATIONAL TRADE IN GOODS AND SERVICES THEREBY SPURRING THE GLOBAL ECONOMY BUT SEVERAL KEY DISPUTES REMAIN UNRESOLVED AS A DEC 15 DEADLINE DRAWS NEAR THE CRUCIAL ONE IS FRANCE'S DEMAND THAT CERTAIN PRELIMINARY AGREEMENTS ON AGRICULTURAL TRADE BE REVISED FOR THE SAKE OF FRENCH FARMERS EVEN THOUGH OTHERS THE US ABOVE ALL CONSIDER THESE MATTERS SETTLED UNLESS PARIS RETREATS THE BROADER GATT TALKS SEEM CERTAIN TO COLLAPSE HOW MUCH WOULD THAT REALLY MATTER AFTER ALL THE WORLD WOULDN'T COME TO AN END THE TIDES WOULD STILL COME IN AND MUCH TRADE WOULD STILL GO OUT EVEN IF GATT STUMBLES TO DEFEAT THE ENORMOUS SCOPE OF GLOBAL BUSINESS MIGHT EVEN EXPAND MODESTLY FOR A TIME WITHOUT NEW RULES EASING ITS GROWTH BUT IN THE END FAILURE WOULD MATTER A GREAT DEAL CONTEND A VARIETY OF GOVERNMENT OFFICIALS BANKERS BUSINESSMEN AND ECONOMISTS WHO SAY THE FALTERING WORLD ECONOMY DESPERATELY NEEDS A BOOST THE URUGUAY ROUND IS THE SINGLE MOST IMPORTANT ISSUE REGARDING THE WORLD ECONOMIC SITUATION SAYS ONE GERMAN OFFICIAL SUCH WORRIERS PREDICT TWO CATEGORIES OF LOSSES THE FIRST CONSISTS OF LOST OPPORTUNITIES ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT A SUCCESSFUL URUGUAY ROUND WOULD INCREASE GLOBAL TRADE BY 200 BILLION ANNUALLY AND NUDGE UP EXPANSION RATES OF MOST MAJOR ECONOMIES THAT'S SORELY NEEDED AT A TIME WHEN THE ANEMIC ANNUAL US GROWTH OF 19 RANKS AMONG THE BEST WHILE ERSTWHILE POWERHOUSES LIKE JAPAN AND GERMANY HAVE STALLED PRESIDENT CLINTON CLEARLY THINKS MORE TRADE IS ESSENTIAL I DON'T BELIEVE A WEALTHY COUNTRY CAN GROW MUCH RICHER IN THE WORLD WE'RE LIVING IN WITHOUT EXPANDING EXPORTS HE SAYS THESE GATT TALKS ALSO ARE PLOWING IMPORTANT NEW GROUND THEY DEAL WITH BOTH MANUFACTURED GOODS THOSE TANGIBLE THINGS THAT CAN BE PUT IN BOXES AND LOADED ABOARD SHIPS PLUS THE EPHEMERAL YET MORE DYNAMIC WORLD OF SERVICES A SUCCESSFUL URUGUAY ROUND WOULD BE THE FIRST TO BREAK DOWN BARRIERS THAT IMPEDE EXPORTERS OF SPECIAL ADVICE TALENTS AND TECHNOLOGY AT HIGH PRICES THE BENEFICIARIES WOULD BE BANKS INSURANCE FIRMS ACCOUNTANTS AND SOFTWARE PROVIDERS IT WOULD ALSO HELP PROTECT THEIR INTELLECTUAL PROPERTY THE INTANGIBLES WITH WHICH THEY EARN THEIR LIVELIHOODS THIS IS ESPECIALLY IMPORTANT TO AMERICANS WHOSE SERVICE EXPORTS LAST YEAR TOTALED 166 BILLION OR ONETHIRD THE VALUE OF MERCHANDISE SHIPMENTS BUT THEY'RE NOT ALONE FRANCE WHICH MAY TORPEDO THE TALKS IN THE NAME OF ITS FARMERS IS THE WORLD'S SECONDLARGEST SERVICES EXPORTER AND FOURTHLARGEST OF MANUFACTURES THE SECOND CATEGORY OF WORRIES CONCERNS FUTURE EFFECTS OF FAILURE MANY BELIEVE A COLLAPSE WOULD ENCOURAGE PROTECTIONISM AND DIMINISH TRADE OVER TIME WE STAND ON THE VERGE OF A WORLD WHICH WILL BE MORE ANTAGONISTIC IN TERMS OF TRADING POLICY AND MORE DIVIDED IN TERMS OF THE BLOCS THAT ARE WAITING TO TURN INWARD RATHER THAN OUTWARD WARNS MR SUTHERLAND JOHN ZYSMAN OF THE INFLUENTIAL BERKELEY ROUNDTABLE ON THE INTERNATIONAL ECONOMY AGREES HE FEARS MANY NATIONS OR TRADING BLOCS SUCH AS THE EUROPEAN COMMUNITY WILL ADOPT UNILATERAL AND AGGRESSIVE ACTIONS TO PROTECT THEMSELVES FROM FOREIGNERS IF GATT DOESN'T OPEN OTHER MARKETS FRED BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS SAYS FAILURE MIGHT ALSO SPEED AN AMERICAN TILT TOWARD DYNAMIC EAST ASIA A BASIC REORIENTATION OF US POLICY AWAY FROM EUROPE OTHERS ARE SLIGHTLY MORE SANGUINE FOR EXAMPLE KENJI YOSHIZAWA DEPUTY PRESIDENT OF THE BANK OF TOKYO ISN'T CONVINCED THAT WORLDWIDE PROTECTIONISM WOULD FOLLOW HE SAYS INTERNATIONAL COMMERCE MORE LIKELY WOULD REMAIN AT A STANDSTILL AT THE STATUS QUO YET HE FINDS EVEN THAT A BLOW TO JAPAN WHOSE ECONOMY IS SO DEPENDENT UPON INTERACTION WITH THE REST OF THE WORLD 9310010109 931001 TECHNOLOGY IMMUNOGEN RECEIVES PATENT FOR SUBSTANCE USED TO TREAT CANCER CAMBRIDGE MASS IMMUNOGEN INC SAID IT WAS AWARDED A US PATENT FOR ITS CYTOTOXIC AGENT BLOCKED RICIN AND ITS USE IN CONJUGATES THAT KILL CANCER CELLS THE BIOTECHNOLOGY COMPANY SAID THAT IN ITS ONCOLYSIN PRODUCTS BLOCKED RICIN IS DELIVERED TO TUMOR CELLS TO DESTROY THEM BLOCKED RICIN IS A DERIVATIVE OF THE TOXIN RICIN FOUND IN CASTOR BEANS IN NATIVE FORM RICIN BINDS TO A SUGAR FOUND ON THE SURFACE OF MOST CELLS IN THE BODY THE PATENT COVERS A METHOD FOR CHEMICALLY BLOCKING THE RICIN MOLECULE TO PREVENT IT FROM BINDING TO CELLS THE PATENT ALSO COVERS CONJUGATION OF BLOCKED RICIN TO A TARGETING AGENT USED TO DELIVER BLOCKED RICIN TO A SPECIFIC POPULATION OF CELLS IMMUNOGEN SAID ONCE INSIDE THE TARGET CELL THE TOXIC PORTION OF RICIN IS RELEASED DESTROYING THE CELL IN THE ONCOLYSINS A MONOCLONAL ANTIBODY SPECIFIC FOR A MARKER FOUND ON THE SURFACE OF A TYPE OF TUMOR CELL IS USED TO TARGET BLOCKED RICIN TO THE TUMOR IMMUNOGEN SAID LABORATORY TESTS HAVE SHOWN BLOCKED RICIN TO BE UP TO 1000 TIMES MORE POTENT THAN CONVENTIONAL CHEMOTHERAPEUTIC AGENTS 9310010108 931001 OKI NOW SEES NARROWER LOSSES THAN EXPECTED JAPANESE COMPANY CITES IMPROVED MARKETS DROP IN INTEREST RATES BY STEVE MARKOWITZ SPECIAL TO THE WALL STREET JOURNAL TOKYO OKI ELECTRIC INDUSTRY CO OF JAPAN REVISED ITS UNCONSOLIDATED EARNINGS FORECAST TO SHOW NARROWER LOSSES IN THE FIRST HALF AND THE FULL FISCAL YEAR WHICH ENDS NEXT MARCH 31 THE COMMUNICATIONS EQUIPMENT MAKER CITED BETTER MARKETS FOR MEMORY DEVICES AND TELEPHONE SWITCHING UNITS AS WELL AS LOWER INTEREST RATES WHICH BRING DOWN DEBTPAYMENT BURDENS AS REASONS BEHIND THE IMPROVEMENT AT THE SAME TIME OKI ANNOUNCED PLANS TO MOVE ITS PRINTED CIRCUIT BOARD BUSINESS INTO A NEW CONSOLIDATED SUBSIDIARY THE COMPANY SAID THE MOVE IS PART OF A BROADER RESTRUCTURING AND WILL PUT THE MARKETING RESEARCH AND DEVELOPMENT AND MANUFACTURING OF THE BOARDS UNDER ONE ROOF OKI NOW EXPECTS ITS PRETAX LOSS FOR THE HALF ENDED YESTERDAY TO TOTAL SEVEN BILLION YEN 665 MILLION COMPARED WITH A PREVIOUS FORECAST OF 14 BILLION YEN IT EXPECTS ITS NR THE HALF TO COME TO 12 BILLION YEN INSTEAD OF THE 145 BILLION IT PREVIOUSLY EXPECTED STILL SALES ARE EXPECTED TO BE DOWN 26 TO 255 BILLION YEN FROM YEAREARLIER FIRSTHALF SALES OF 26184 BILLION FOR LAST YEAR'S FIRST HALF OKI REPORTED A PRETAX LOSS OF 1935 BILLION YEN AND A NET LOSS OF 868 BILLION YEN FOR THE FULL FISCAL YEAR OKI SAID IT SEES SALES SLIPPING BELOW THE PRIOR FORECAST BUT LOSSES NONETHELESS SHRINKING EVEN MORE THAN ORIGINALLY EXPECTED AN OKI SPOKESMAN SAID THE COMPANY CAN PULL OFF THAT FEAT BECAUSE OF LOWER COSTS OF PRODUCTION DUE TO HIGHER VOLUMES AS WELL AS DECREASED OPERATING EXPENSES AFFECTED BY STREAMLINING MEASURES THE SPOKESMAN SAID OKI SO FAR HAS SEEN THE MARKET FOR ITS STAPLE MEMORY DEVICES PICK UP HE SAID THE COMPANY'S SHIPMENTS OF BASIC FOURMEGABIT CHIPS FOR EXAMPLE HAVE RISEN TO 35 MILLION UNITS IN AUGUST FROM 25 MILLION IN APRIL AT THE START OF THE FISCAL YEAR AS VOLUMES RISE COSTS PER CHIP GENERALLY FALL OKI HAS BEEN ABLE TO OFFSET THE DETRIMENTAL EFFECTS OF THE YEN'S RAPID APPRECIATION BY RAISING PRICES ON THE MEMORY DEVICES SOLD OVERSEAS THE SPOKESMAN SAID THE YEN'S STRENGTHENING MAKES FOREIGNCURRENCYDENOMINATED SALES WORTH LESS IN YEN WHEN REPATRIATED FOR THE YEAR THE NEW FORECAST IS FOR AN UNCONSOLIDATED PRETAX LOSS OF EIGHT BILLION YEN COMPARED WITH A PREVIOUS PREDICTION FOR A LOSS OF 19 BILLION THE NET LOSS SHOULD TOTAL ABOUT 14 BILLION YEN COMPARED WITH PREVIOUS EXPECTATIONS FOR A LOSS OF 20 BILLION YEN OKI SAID IN THE PRIOR FISCAL YEAR OKI POSTED A PRETAX LOSS OF 3833 BILLION YEN AND A NET LOSS OF 3319 BILLION AS FOR CORPORATE RESTRUCTURING EFFORTS OKI SAID 600 WORKERS HAD TAKEN ADVANTAGE OF ITS EARLYRETIREMENT PROGRAM DURING THE FIRST HALF OKI HAS ANNOUNCED PLANS TO CUT STAFFING AT ITS GROUP OF COMPANIES BY 2000 BY THE END OF THE COMING FISCAL YEAR WHICH WILL RUN THROUGH MARCH 31 1995 OKI SAID IT HAS BENEFITED FROM THE JAPANESE GOVERNMENT'S INVESTMENT IN INFRASTRUCTURE PART OF TOKYO'S FISCAL STIMULUS EFFORTS THE COMPANY SAID IT HAS HAD INCREASED ORDERS FROM NIPPON TELEGRAPH & TELEPHONE CORP 9310010107 931001 LEISURE & ARTS ON SPORTS BIGTIME SCHOOLS IN BIGBUCKS SUITS BY FREDERICK C KLEIN IN THIS LITIGIOUS LAND THE DOINGS IN OUR LAW COURTS HAVE BECOME A KEY SOCIETAL WEATHER VANE SO YOU COULDN'T BLAME OUR BIGTIME SPORTS COLLEGES FOR FEELING DISTINCTLY CHILLY THESE DAYS THREE LAWSUITS HAVE BEEN FILED THAT PLACE THESE INSTITUTIONS IN THE POSITION OF A MANUFACTURER WHOSE POTATO PEELER JUST CUT OFF SOMEBODY'S FINGER ONE INVOLVES LOU CAMPANELLI THE FORMER HEAD BASKETBALL COACH AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY HE WAS FIRED IN MIDSEASON LAST ALLEGEDLY BECAUSE THE SCHOOL'S ATHLETICS DIRECTOR OVERHEARD HIM VERBALLY ABUSING HIS PLAYERS CAMPANELLI SAYS THE ABRUPT DISMISSAL PLACED A STIGMA ON HIM THAT HAS HAMPERED HIS SEARCH FOR NEW EMPLOYMENT AND IS ASKING FOR DAMAGES OF 5 MILLION PLUS THE PLAINTIFF IN ANOTHER SUIT IS BRYAN FORTAY A FORMER UNIVERSITY OF MIAMI STUDENTQUARTERBACK HE CLAIMS THAT THE FOOTBALL COACH THERE DENNIS ERICKSON PROMISED HIM THE NO 1 QB JOB BUT GAVE IT TO ANOTHER PLAYER THUS JEOPARDIZING FORTAY'S FUTURE PROFESSIONAL PROSPECTS HE WANTS 10 MILLION FROM ERICKSON AND HIS FORMER SCHOOL THE THIRD IS BY MARIANNE STANLEY WHO FROM 1989 THROUGH LAST SEASON COACHED THE WOMEN'S BASKETBALL TEAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA WHEN HER CONTRACT EXPIRED SHE TURNED DOWN SEVERAL NEW CONTRACT OFFERS FROM THE SCHOOL ON GROUNDS THEY DIDN'T PUT HER SALARY AS HIGH AS THAT OF USC'S MEN'S BASKETBALL COACH GEORGE RAVELING THEN SHE WAS REPLACED SHE IS SUING IN FEDERAL COURT FOR REINSTATEMENT AND DAMAGES CLAIMING SEX DISCRIMINATION WHATEVER THEIR MERITS IT'S EASY TO POKE FUN AT THE FIRST TWO OF THESE ACTIONS CAMPANELLI FOR INSTANCE COULD POINT OUT TO THE COURT THAT BOB KNIGHT THE LONGTIME HOOPS COACH AT INDIANA UNIVERSITY REMAINS NOT ONLY EMPLOYED BUT ALSO HIGHLY ESTEEMED IN HIS STATE EVEN THOUGH HE VERBALLY ABUSES NEARLY EVERYONE AND IF FORTAY PREVAILS HE MIGHT NOT THE LAD ERICKSON MADE HIS STARTING QUARTERBACK IN THE SEASON IN QUESTION GINO TORRETTA WENT ON TO WIN THE HEISMAN TROPHY WHILE FORTAY NOW PLAYS MOSTLY IN RESERVE AT RUTGERS HIS NEW SCHOOL BENCHWARMER LAW WOULD QUICKLY BECOME AN IMPORTANT AND LUCRATIVE LEGAL SPECIALTY THE STANLEY SUIT THOUGH TOUCHES A PARTICULARLY SENSITIVE NERVE BECAUSE IT'S TIED TO THE GENDER EQUITY ISSUE THAT HAS RIVEN MANY OF THE NATION'S CAMPUSES THAT'S BECAUSE WHILE OSTENSIBLY ABOUT PROVIDING EXPANDED VARSITY OPPORTUNITIES FOR FEMALE STUDENTS GENDER EQUITY IS REALLY ABOUT MONEY WHICH FOR REASONS NOT ALWAYS CLEAR SEEMS TO BE IN SHORT SUPPLY IN ATHLETICS DEPARTMENTS EVERYWHERE NO MATTER HOW MUCH IS COMING IN ONE NEED ONLY SCAN THE DOCUMENTS IN THE STANLEY CASE TO UNDERSTAND HOW MUCH BIGTIME COLLEGE SPORTS HAVE COME TO BE ABOUT THE PURSUIT OF THE DOLLAR AND HOW LITTLE ABOUT THE OFTSTATED GOALS OF EDUCATION AND CHARACTERBUILDING BOTH SIDES IN THE SUIT BASE THEIR ARGUMENTS NOT ON THE RELATIVE MERITS AS TEACHERS OF STANLEY AND RAVELING BUT ON THEIR ROLES IN PUTTING FANNIES IN THE SEATS WHEN THEIR TEAMS PLAYED AND OTHERWISE FILLING THE ATHLETICS COFFERS OF THE LOS ANGELES SCHOOL INDEED WHEN THE QUALIFICATIONS OF THE TWO ARE LISTED SIDE BY SIDE IT'S STRIKING HOW SIMILAR THEY ARE RAVELING IS A RESPECTED COACH WITH A LIFETIME WINNING RECORD SO IS STANLEY WHOSE CREDENTIALS INCLUDE NATIONAL CHAMPIONSHIPS IN A PREVIOUS STINT AT OLD DOMINION UNIVERSITY BOTH HAVE COACHED US TEAMS IN IMPORTANT INTERNATIONAL COMPETITIONS AND WON VARIOUS COACH OF THE YEAR AWARDS STANLEY'S WONLOST MARK AT USC OVER THE PAST FOUR YEARS WAS 7146 RAVELING'S 7344 EACH COACHED ABOUT THE SAME NUMBER OF PLAYERS AND OVERSAW ABOUT SAME NUMBER OF ASSISTANTS YET USC HOLDS THAT RAVELING DESERVED HIGHER PAY THAN STANLEY HE EARNED BETWEEN 130000 AND 150000 LAST TERM TO STANLEY'S 69000 AND THE SCHOOL'S FINAL OFFER TO HER WAS FOR A ONEYEAR CONTRACT WORTH 96000 HER FILINGS SAY FOR REASONS THAT INCLUDE THE FOLLOWING AVERAGE HOME ATTENDANCE FOR WOMEN'S BASKETBALL GAMES DURING STANLEY'S TENURE WAS 751 TO 4037 FOR THE MEN'S TEAM OVER THE SAME PERIOD TELEVISION AND RADIO STATIONS PAY TO BROADCAST THE GAMES OF THE MEN'S TEAM WHILE ONLY CABLE TV IS WILLING TO PAY TO BROADCAST THE WOMEN'S GAMES AND THEN ONLY AS PART OF A LARGER PACKAGE DONATIONS AND ENDOWMENTS TO THE WOMEN'S BASKETBALL PROGRAM OVER THE PAST FOUR YEARS AMOUNTED TO 4288 AGAINST 66916 TO THE MEN'S PROGRAM TOTAL WOMEN'S BASKETBALL REVENUE IN THAT PERIOD WAS 50262 TO 4725784 FOR THE MEN BECAUSE OF GREATER SPECTATOR AND MEDIA INTEREST IN MEN'S BASKETBALL AND THEREFORE IT'S POTENTIAL FOR REVENUE PRODUCTION GREATER EXPECTATIONS FOR AND PRESSURE TO ACHIEVE A SUCCESSFUL IE WINNING PROGRAM ARE PLACED ON THE HEAD COACH OF THE MEN'S TEAM THE UNIVERSITY CONCLUDES NOT SO COUNTERS STANLEY WHO ASSERTS THAT SHE TOO WAS UNDER TREMENDOUS PRESSURE TO WIN MADE ALL THE MORE INTENSE BY THE FAILURE OF USC TO SUPPORT MARKET AND DEVELOP HER TEAMS SHE CLAIMS THIS LACK ALSO CAUSED HER HUMILIATION SHE ASSERTS FOR EXAMPLE THAT USC PROVIDED THE MEN'S BASKETBALL TEAM WITH A POSTER SETTING FORTH ITS PLAYING SCHEDULE WHEN I APPEARED WITH THE MEN'S COACH HE WAS ABLE TO SIGN AND GIVE AWAY HIS POSTER DURING THOSE EMBARRASSING MOMENTS I COULD ONLY STAND AROUND AND WATCH BECAUSE USC HAS REFUSED TO PURCHASE SIMILAR POSTERS FOR ITS WOMEN'S BASKETBALL PROGRAM WHILE IT'S DEPRESSING TO SEE COLLEGE SPORTS DISCUSSED IN PURELY COMMERCIAL TERMS BY THE ADULTS INVOLVED IT HAS THE ADVANTAGE OF CLEARING THE DECKS OF EXTRANEOUS SENTIMENTALITY FOR FUTURE DISCUSSIONS IN CASE ANYONE MISSED THE POINT USC RESTATES IT IN ITS FILINGS THE MEN'S BASKETBALL TEAM HEAD COACH EFFECTIVELY IS THE CEO OF A CORPORATION WHICH GENERATES OVER 1 MILLION OF TOTAL REVENUE EACH YEAR IT SAYS OK AND THE ATHLETICS DIRECTOR IS THE HEAD OF A CORPORATION THAT GENERATES 15 MILLION TO 20 MILLION IN ANNUAL REVENUE LIKE THE HEAD OF OUR POTATOPEELER MAKER SAY 9310010106 931001 ENTERPRISE TALKING STRATEGY ENTREPRENEURS PROVIDE ADVICE TO HELP THE BUYER BEWARE GIVING UNBIASED INFORMATION TO CONSUMERS REPRESENTS GROWING MARKET BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL MILLIONS OF PEOPLE DREAD NOTHING MORE THAN BUYING A NEW HOUSE CAR OR EVEN INSURANCE POLICY TO COPE WITH THE BIG DECISION AND AVOID RIPOFFS THEY CRAVE ADVICE NOW GROWING NUMBERS OF ENTREPRENEURS ARE JUMPING INTO THE BUSINESS OF PROVIDING IT IN RECENT YEARS FOR EXAMPLE HUNDREDS OF REAL ESTATE AGENTS HAVE BECOME INDEPENDENT BUYERS' BROKERS SO THEY CAN SOLELY REPRESENT HOME PURCHASERS EXPERTS PREDICT STRONG GROWTH IN THE RANKS OF SUCH BROKERS AS WELL AS IN THE NUMBER OF AUTO CONSULTANTS AND SMALL FINANCIALPLANNING FIRMS THERE IS A MARKET FOR ANYONE WHO CAN PROVIDE UNBIASED INFORMATION TO THE CONSUMER SAYS DORIS EHLERS ACCOUNT DIRECTOR AT J D POWER & ASSOCIATES AN AGOURA HILLS CALIF MARKETING INFORMATION FIRM BUT THERE EXISTS A CATCH MANY CONSUMER ADVISERS FIND IT HARD TO MAKE MONEY UNLIKE MOST SMALLBUSINESS OWNERS THEY MUST CHARGE MONEY FOR A SERVICE THAT SOME OF THEIR COMPETITORS GIVE AWAY FREE THOUGH AUTO SALESPEOPLE INSURANCE AGENTS INVESTMENT BROKERS AND OTHER COMMISSIONBASED BROKERS CLEARLY HAVE AXES TO GRIND THEY DO OFFER INFORMATION AND ADVICE AND THEY DON'T CHARGE FOR IT TO BOOST THEIR THIN PROFITS CONSUMER ADVISERS MUST CONVINCE SKEPTICAL CLIENTS THAT THEIR ADVICE IS WORTH PAYING FOR AND MUST THWART ATTACKSINTERESTS MARKETING CONSULTANTS SAY LISA LEFFL A FORMER AUTO SALESWOMAN IN MERRILLVILLE IND UNDERSTANDS HOW TRICKY THAT TASK CAN BE IN MAY SHE STARTED A BUSINESS OFFERING ADVICE ABOUT CAR PURCHASES WITH HOPES OF POSTING FIRSTYEAR REVENUE OF MORE THAN 10000 MS LEFFL FIGURED HER SERVICE SHOULD BE WORTH NEARLY 200 PER CUSTOMER BECAUSE SHE PROMISED TO SAVE HER CLIENTS TIME AND AT LEAST 200 ON ANY PROPOSED CAR DEAL BUT SHE DISCOVERED THAT THE CONCEPT OF FEEBASED CONSULTING FOR AUTO PURCHASES IS SO NEW THAT SHE DIDN'T DARE CHARGE THAT MUCH YOU CAN'T SELL THE SERVICE AT ITS TRUE VALUE BECAUSE PEOPLE ARE UNFAMILIAR WITH IT MS LEFFL OBSERVES SHE PRESENTLY CHARGES AN 85 FEEWHICH TYPICALLY WORKS OUT TO AROUND 10 AN HOUR FOR SUPPLYING DETAILED DATA ABOUT VEHICLES DEALERS' FEES AND MANUFACTURERS' INCENTIVES AS WELL AS PERSONALLY HANDLING AN INDIVIDUAL'S NEGOTIATIONS WITH A DEALER AND SHE HAS LOWERED HER FIRSTYEAR REVENUE PROJECTION TO ONLY 3500 ENTREPRENEURS CAN SUCCEED AS CONSUMER ADVISERS BY TRANSLATING THE TERRIBLY INTANGIBLE BENEFIT OF THEIR SERVICE INTO SOMETHING CONCRETE FOR THEIR CUSTOMERS ADVISES GERALD HILLS A MARKETING PROFESSOR AT THE UNIVERSITY OF ILLINOIS IN CHICAGO HE SUGGESTS THAT ADVISERS WOO HIGHLY EDUCATED AFFLUENT PEOPLE WITH CONSIDERABLE INTEREST IN RESEARCHING THEIR BIGBUYING DECISIONS BUT LITTLE TIME TO DO SO PROF HILLS RECOMMENDS APPROACHING WELLTODO INDIVIDUALS THROUGH A THIRD PARTY WHICH CAN LEND AN AIR OF OBJECTIVITY AND CREDIBILITY OFFERING FREE SEMINARS THROUGH A NONPROFIT ORGANIZATION SUCH AS A LOCAL RETIREE ASSOCIATION CREDIT UNION CHURCH LIBRARY OR UNIVERSITY CAN BE AN EFFECTIVE WAY TO LAND PROSPECTS HE ADDS ROBERT WACKER A FEEONLY FINANCIAL AND INVESTMENT PLANNER IN SAN LUIS OBISPO CALIF SAYS HE SPENT SEVERAL THOUSAND DOLLARS TO PROMOTE HIMSELF THROUGH LOCAL ADVERTISING ABOUT FIVE YEARS AGO HE GOT NO RESPONSE NOT EVEN TO HIS OFFER FOR A FREE BROCHURE HE THEN REALIZED THAT MOST PEOPLE NEED A MORE PERSONAL APPROACH TO PERSUADE THEM TO LISTEN TO HIS FEEONLY PITCH UNDAUNTED MR WACKER HELD FREE SEMINARS ABOUT THE BASICS OF FINANCIAL PLANNING HE SAYS THE SEMINARS INITIALLY CONDUCTED AT HIS CHURCH ENABLED HIM TO EXPLAIN THE DIFFERENCE BETWEEN COMMISSIONBASED INVESTMENTS AND HIS NONCOMMISSION SERVICE AS A RESULT HE ESTIMATES THAT HE WON 100 CLIENTS IN THREE YEARS MARKETING EXPERTS SAY THAT CONSUMER ADVISERS CAN ALSO WIN CUSTOMERS BY MAKING A GOOD IMPRESSION WHERE THEY WORK DENNIS TWEEDALE OWNER OF DEVINE & TWEEDALE INC A SMALL INSURANCE CONSULTING FIRM IN MADISON WIS PRIMARILY ADVISES PRIVATE SMALL BUSINESSES FOR 100 AN HOUR EARLIER THIS YEAR HE LANDED AN OPPORTUNITY TO SERVE THOSE BUSINESS OWNERS AS INDIVIDUALS TOO DEVINE & TWEEDALE HAD IMPRESSED SUBY VON HADEN & ASSOCIATES A LOCAL ACCOUNTING FIRM BY ANALYZING ITS BUSINESS COVERAGE AND NEGOTIATING FOR CERTAIN AMENDMENTS FOR EXAMPLE DEVINE & TWEEDALE DISCOVERED THAT THE ACCOUNTING FIRM'S MALPRACTICE INSURANCE DIDN'T EXPRESSLY COVER COMPUTER FOULUPS THOUGH THE ACCOUNTING FIRM RELIES HEAVILY ON COMPUTERS SAYS DALE SMITH A SUBY VON HADEN PRINCIPAL THE INSURANCE CONSULTANTS PERSUADED THE MALPRACTICE INSURER TO SPECIFY THAT SUCH MISHAPS WILL INDEED BE COVERED THAT SUCCESSFUL EFFORT PROMPTED THE 16 SUBY VON HADEN PARTNERS TO ASK MR TWEEDALE'S FIRM TO PERUSE THEIR HOMEOWNER AUTO BOAT COMPUTER AND PERSONAL LIABILITY POLICIES AND RECOMMEND CHANGES AT FEES OF 200 TO 300 EACH ENCOURAGING PEOPLE TO SHOP AROUND MORE AGGRESSIVELY CAN HELP CONSUMER CONSULTANTS TOO SAYS JAMES D SCHWARTZ AN ENGLEWOOD COLO LIFEINSURANCE CONSULTANT WHO HAS WRITTEN A BOOK ABOUT PERSONAL FINANCIAL PLANNING FOR INSTANCE HE URGES CONSUMERS TO ASK COMMISSIONED AGENTS ABOUT INTERESTRATE ASSUMPTIONS USED IN PRICING THEIR INSURANCE POLICIES BECAUSE THEIR ASSUMPTIONS SOMETIMES ARE OVERLY ROSY MR SCHWARTZ SAYS SUCH STRATEGIES ENABLED HIM TO BUILD A PRACTICE SPECIALIZING IN COUNSELING MILLIONAIRE ENTREPRENEURS CONSUMER ADVISERS MUST BE PREPARED TO REFUTE COUNTERATTACKS BY TRADITIONAL INDUSTRY INTERESTS CONSULTANTS SAY THE RECENT EMERGENCE OF A BUYER'S BROKER HAS SPARKED COUNTERMOVES BY THE TRADITIONAL SELLERORIENTED BROKERAGE FIRMS LAST SPRING FOR EXAMPLE ILLINOIS LAWMAKERS PASSED A BILL DRAFTED BY THE STATE'S ASSOCIATION OF REALTORS THE MEASURE ALLOWS THE APPOINTMENT OF AN INHOUSE BUYER'S BROKER BY TRADITIONAL SELLERORIENTED REAL ESTATE AGENCIES SARA BENSON O'CONNOR OWNER OF AN EXCLUSIVE BUYER'S BROKERAGE FIRM IN CHICAGO PROTESTS THAT CONFLICTS BETWEEN A SELLER'S AND A BUYER'S INTERESTS MEAN BUYERS STILL MAY BE HURT BY WORKING WITH A TRADITIONAL REALESTATE FIRM SHE TAKES PAINS TO INFORM CONSUMERS THAT HER COMPANY REPRESENTS ONLY BUYERS AND OFFERS A MONEYBACK GUARANTEE THAT IT WON'T REPRESENT OTHER PARTIES ONE CLIENT EMPLOYMENT SUPERVISOR DEANNA ROUTH SAYS SHE INITIALLY CONTACTED A TRADITIONAL BROKER WHO PRESSURED HER TO CONSIDER CONDOMINIUM LISTINGS ABOVE HER PRICE RANGE SHE SAYS SHE SWITCHED TO MS O'CONNOR AFTER THE BUYER'S BROKER EXPLAINED THAT SHE WOULD BE ACTING SOLELY IN MS ROUTH'S INTEREST MS ROUTH SAYS SHE WAS PLEASED THAT MS O'CONNOR DIRECTED HER TO LISTINGS WITHIN HER PRICE RANGE WHEN MS ROUTH FOUND AN APARTMENT SHE WANTED MS O'CONNOR POINTED OUT CERTAIN FLAWS THE SELLER PAID TO REMOVE CEILING WATER MARKS AND ASBESTOS AND EVEN ADDED SUPPORT BEAMS MS ROUTH SPENT 90000 FOR THE CONDO SINCE THEN SHE ADDS I'VE REFERRED TWO FRIENDS TO MS O'CONNOR WHO JUST LOVE HER 9310010105 931001 LETTERS TO THE EDITOR ETHICAL DILEMMA OF JAW IMPLANTS WE APPLAUD YOUR EFFORT TO FOCUS NEEDED ATTENTION ON A MEDICAL MALADY THAT HAS BROUGHT UNBELIEVABLE AND USUALLY SILENT SUFFERING TO UNTOTALED NUMBERS OF AMERICANS MEDICAL MESS IMPLANTS IN JAW JOINT FAIL LEAVING PATIENTS IN PAIN AND DISFIGURED PAGE ONE AUG 31 THE ARTICLE APPEARS TO BE WELLRESEARCHED UNJUDGMENTAL AND UNBIASED HUMANE AND INFORMATIVE IT SHOCKS BY CLEAR THOROUGH PRESENTATION OF THE FACTS NOT BECAUSE OF JOURNALISTIC TECHNIQUES WE WOULD OF COURSE HAVE WELCOMED A MORE HOPEFUL CONCLUSION ON BEHALF OF TMJ TEMPOROMANDIBULAR JOINT IMPLANT PATIENTS THERE ARE IN ADDITION A NUMBER OF REALITIES THAT WE FEEL OBLIGED TO CALL TO YOUR READERS' ATTENTION THE ARTICLE CORRECTLY INDICATES THAT THERE IS A PROFOUND ETHICAL DILEMMA BIOMATERIALS ENGINEERS AND DOCTORS ALIKE ARE CAUGHT IN A CONFLICT OF OBLIGATION BETWEEN THEIR SELFINTERESTS OF PROFITS AND PRESTIGE AND THEIR CLIENTS' INTERESTS OF ADEQUATE CARE THIS DILEMMA IS NOT BEING RESOLVED TO ANYONE'S SATISFACTION IT IS UNREALISTIC TO RELY ON GOVERNMENT AGENCIES SUCH AS THE FDA TO OVERSEE AND POLICE THESE PROBLEMS WITHOUT THE COOPERATION OF PROFESSIONAL ASSOCIATIONS VITEK TMJ IMPLANT PATIENTS WHO HAVE ADDITIONAL AND TERRIBLY COMPLICATING FACTORS NUMBER IN THE THOUSANDS OTHER TMJ SUFFERERS WHO HAVE BEEN TREATED BOTH SURGICALLY AND NONSURGICALLY NUMBER IN THE MILLIONS MANY OF THESE PATIENTS HAVE BEEN SIMILARLY COMPROMISED TMJ IS AN ORPHAN AFFLICTION THE MEDICAL PROFESSION AND THE ORTHOPEDIC PHYSICIANS IN PARTICULAR HAVE NOT CLEARLY ACCEPTED RESPONSIBILITY FOR THE HEALTH OF THESE EXQUISITE JOINTS LET ALONE THOSE STRICKEN WITH JAW JOINTS DISORDERS AS A RESULT OF THE ABSENCE OF MEDICAL PROTOCOLS INSURERS ROUTINELY DO NOT COVER TMJ AS A REIMBURSABLE BENEFIT THESE PROBLEMS ARE LARGELY PREVENTABLE THROUGH THE EDUCATION OF THE PUBLIC AND HEALTH CARE PROVIDERS WHAT IS REALLY NEEDED IS FOR THE MEDICAL COMMUNITY TO ACCEPT COMPLETE RESPONSIBILITY FOR TMJ DISORDERS IN AN INTERSPECIALTY WORKING ARRANGEMENT WITH DENTISTS AND ORAL SURGEONS THE TMJ ASSOCIATION AS A NATIONAL NONPROFIT ADVOCACY GROUP FOR PEOPLE WITH TMJ DISORDERS HEARS TRAGIC STORIES DAILY OF PAIN AND SUFFERING WE ARE APPALLED AND OUTRAGED AT THE SENSELESS DEVASTATION WREAKED UPON THE LIVES OF THOUSANDS OF TMJ SUFFERERS IN THIS COUNTRY ALL BECAUSE PROFIT AND GREED ARE PUT BEFORE THE WELFARE OF PATIENTS YOU OUTLINE THE SCENARIO OF HOW GOVERNMENTAL AGENCIES HEALTH CARE PROFESSIONALS AND DEVICE MANUFACTURERS BY ACTIONS OF COMMISSION OR OMISSION FAIL TO PROTECT THE TEMPOROMANDIBULAR JOINT PATIENTS OF THIS COUNTRY HOWEVER THE AMERICAN DENTAL ASSOCIATION THE NATIONAL INSTITUTES OF HEALTH AND THE MEDICAL COMMUNITY WHO WERE SPARED CRITICISM SHOULD ALSO SHARE THE BLAME THE ADA HAS NEGLECTED TO MAKE TMJ A SPECIALTY WITH EDUCATIONAL CRITERIA AND EVEN WORSE HAS IGNORED THE BLATANT QUACKERY BEING PRACTICED BY AMERICAN DENTISTS THE NIH HAS SPENT A MERE 07 OF ITS TOTAL BUDGET ON RESEARCH OF A DISORDER THAT AFFECTS ABOUT 20 OF THE POPULATION 90 OF WHOM ARE WOMEN AND THE MEDICAL COMMUNITY HAS COMPLETELY AVOIDED TEMPOROMANDIBULAR JOINT DISORDER ALTHOUGH MOST ASPECTS OF THE DISORDER ARE NONDENTAL WHAT WE HAVE IS A DISORDER WITH NO CONSENSUS ON DEFINITION CAUSE DIAGNOSIS OR TREATMENT IN OTHER WORDS A VIRTUAL LACK OF SCIENCE WITH THE END RESULT A HUGE MEDICAL MESS ISN'T IT TIME THIS DISORDER IS GIVEN THE SCIENTIFIC RESPECT IT DESERVES NOT ALL TMJ IMPLANTS FAIL THE CHRISTENSEN TMJ FOSSAEMINENCE AND CONDYLAR PROSTHESES HAVE BEEN USED SINCE 1961 AND 1965 RESPECTFULLY WITHOUT ANY KNOWN INSTANCE OF SERIOUS PATIENT INJURY IN ALL OF THOSE YEARS TO THE CONTRARY LITERALLY THOUSANDS OF PATIENTS HAVE HAD THEIR TEMPOROMANDIBULAR JOINTS RESTORED WITH THESE IMPLANTS THE IMPLANTS ARE VERY AFFORDABLE AND CONSIDERING THEIR USEFUL LIFE ARE QUITE INEXPENSIVE THE IDEA THAT DEGENERATIVE JOINT DISEASE IS REVERSIBLE AND NEEDS NO SURGICAL INTERVENTION CERTAINLY GOES AGAINST ALL THAT I HAVE OBSERVED IN OPERATING THIS JOINT FOR 40 YEARS IT IS IMPERATIVE THAT THE PROPER IMPLANT BE PLACED AT THE FIRST SURGERY SO THAT SUBSEQUENT SURGERIES WILL BE UNNECESSARY 9310010103 931001 THURSDAY'S MARKETS STOCK BOND PRICES SLIDE DOLLAR RISES GOOD ECONOMIC NEWS FAILS TO PROP SHARES IN QUEASY' MARKET BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS SLID AS A LACK OF COMPELLING ECONOMIC NEWS GAVE INVESTORS AN EXCUSE TO SELL BOND PRICES ALSO DROPPED AND THE DOLLAR ENDED HIGHER THE DOW JONES INDUSTRIAL AVERAGE FELL 1118 POINTS TO 355512 THE STANDARD & POOR'S 500STOCK EASED 118 TO 45893 AND THE NASDAQ COMPOSITE INDEX SLIPPED 039 TO 76278 THE DECLINES CAME AS THE COMMERCE DEPARTMENT REPORTED THAT PERSONAL INCOME ROSE A SEASONALLY ADJUSTED 13 IN AUGUST FROM JULY AND THE PURCHASING MANAGEMENT ASSOCIATION OF CHICAGO SAID THAT ITS INDEX OF AREA BUSINESS ACTIVITY ROSE TO 545 IN SEPTEMBER ON A SEASONALLY ADJUSTED BASIS FROM 502 IN AUGUST THOUGH BOTH THOSE REPORTS WERE UPBEAT THE EUPHORIA WAS TEMPERED BY NEWS THAT SALES OF NEW SINGLEFAMILY HOMES FELL 31 IN AUGUST ITS SECOND STRAIGHT DROP THE MARKET IS A LITTLE QUEASY SAID STEPHEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN PEOPLE ARE WONDERING HOW MUCH FUEL IS LEFT IN THE INTEREST RATE ENGINE AND WHILE THERE IS STILL SOME FUEL LEFT IN THE EARNINGS ENGINE THERE IS LESS LIKELIHOOD OF GETTING AS MANY POSITIVE EARNINGS SURPRISES IN THE SECOND HALF AS IN THE FIRST HALF HE SAID MR RESNICK SUGGESTED THAT ONE OF THE REASONS INVESTORS DIDN'T RESPOND TO SOME OF THE POSITIVE ECONOMIC REPORTS YESTERDAY WAS THAT THEY WEREN'T THAT CONVINCING FOR INSTANCE PERSONAL INCOME WAS BOOSTED BY A REBOUND IN FARM AND RENTAL INCOME WHICH HAD BEEN DEPRESSED IN JULY BY THE FLOODING IN THE MIDWEST AND A DROUGHT IN THE SOUTHEAST WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 044 TO 11103 IN MAJOR MARKET ACTION STOCK PRICES DECLINED VOLUME TOTALED 281 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1130 ISSUES ROSE AND 866 FELL BOND PRICES DROPPED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 602 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16330 MARKS AND 10618 YEN COMPARED WITH 16136 MARKS AND 10505 YEN WEDNESDAY 9310010102 931001 TECHNOLOGY ABBOTT LABS' HYTRIN IS APPROVED BY FDA FOR TREATING PROSTATE NORTH CHICAGO ILL THE FOOD AND DRUG ADMINISTRATION APPROVED THE USE OF ABBOTT LABORATORIES' ANTIHYPERTENSIVE DRUG HYTRIN FOR TREATMENT OF BENIGN ENLARGEMENT OF THE PROSTATE GLAND ANALYSTS SAY THE NEW INDICATION FOR THE DRUG COULD GENERATE UPWARDS OF 400 MILLION IN NEW ANNUAL SALES OF THE SEVENYEAROLD MEDICATION THE PROSTATE CONDITION KNOWN AS BENIGN PROSTATIC HYPERPLASIA OR BPH PRODUCES DIFFICULTY IN URINATION IN MILLIONS OF OLDER MEN AND HAS FOR YEARS BEEN TREATED WITH SURGERY OR GONE LARGELY UNTREATED LAST YEAR THE DEPARTMENT OF VETERANS AFFAIRS BEGAN CLINICAL TRIALS EVALUATING THE USE OF HYTRIN ALONG WITH MERCK & CO'S NEW PROSCAR ANTIBPH DRUG IN TREATING THE CONDITION THAT RESEARCH IS TO INVOLVE 1200 MEN AT 30 VETERANS AFFAIRS MEDICAL CENTERS AROUND THE COUNTRY PHYSIOLOGICALLY HYTRIN KNOWN GENERICALLY AS TERAZOSIN HYDROCHLORIDE DOESN'T SHRINK THE PROSTATE GLAND BUT IS DESIGNED TO RELAX MUSCLES AND REDUCE OBSTRUCTIONS TO URINARY FLOW ASIDE FROM HYTRIN AND PROSCAR VARIOUS US MEDICAL CENTERS HAVE BEGUN TREATING BPH THROUGH MEDICAL DEVICES LIKE LASERS AND THERMAL EQUIPMENT ABBOTT SAID STUDIES HAVE SHOWN HYTRIN TO PRODUCE IMPROVEMENTS IN BPH SYMPTOMS AND URINARY FLOW RATES FOR AS LONG AS 30 MONTHS THE MEDICATION CAUSES A SUDDEN DROP IN BLOOD PRESSURE AFTER THE FIRST DOSE IN SOME PATIENTS THIS CAUSES SOME PEOPLE TO FEEL DIZZY OR FAINT ESPECIALLY JUST AFTER STANDING UP SO THE COMPANY RECOMMENDS PEOPLE TAKE THE DRUG AT BEDTIME THE COMPANY SAID HYTRIN LOWERS BLOOD PRESSURE IN HYPERTENSIVE PATIENTS BUT IN PEOPLE WITH NORMAL BLOOD PRESSURES BEING TREATED FOR BPH THE MEDICATION DOESN'T CAUSE A CLINICALLY SIGNIFICANT REDUCTION OF BLOOD PRESSURE ACCORDING TO ABBOTT ABBOTT'S STOCK CLOSED AT 27375 A SHARE UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9310010101 931001 DIVISIONS OF AMERICAN ELECTRIC POWER TO CALL FIRST MORTGAGE BONDS COLUMBUS OHIO FOUR AMERICAN ELECTRIC POWER CO UNITS SAID THEY WILL REDEEM FIRST MORTGAGE BONDS OCT 30 APPALACHIAN POWER CO WILL REDEEM THE 60 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 85 SERIES DUE 1999 AT 10173 OF PRINCIPAL PLUS ACCRUED INTEREST COLUMBUS SOUTHERN POWER CO WILL REDEEM THE 35 MILLION PRINCIPAL OUTSTANDING OF 8875 SERIES DUE 2006 AT 10378 OF PRINCIPAL PLUS ACCRUED INTEREST INDIANA MICHIGAN POWER CO WILL REDEEM THE OUTSTANDING 50 MILLION PRINCIPAL OF ITS 7875 SERIES DUE 1997 AT 10106 PLUS ACCRUED INTEREST OHIO POWER CO WILL REDEEM THE 40 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 9 SERIES DUE 2007 AT 10353 OF THE PRINCIPAL AMOUNT 9310010100 931001 TWO QUIT BOARD OF AMERICA WEST AIR PRITZKERS' BID FOR CONTROL MAY BE HURT BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TWO AMERICA WEST AIRLINES DIRECTORS HAVE RESIGNED ONE UNDER PROTEST IN A MOVE THAT COULD HURT THE PRITZKER FAMILY'S EFFORTS TO GAIN CONTROL OF THE CARRIER IN A BITTER TWIST FOR AN ALREADY DIVIDED COMPANY ONE DEPARTING DIRECTOR JUAN C O'CALLAHAN SAYS HE IS BEING FORCED OFF THE 10MEMBER BOARD BY THE VERY GROUP THAT PUT HIM ON LAST YEAR GPA GROUP PLC OF IRELAND GPA AMERICA WEST'S LARGEST CREDITOR WILL HAVE JAMES C CLARK 35 YEARS OLD VICE PRESIDENT OF GPA CAPITAL IN NEW YORK SUCCEED MR O'CALLAHAN THE OTHER VACANCY ON THE BOARD WILL BE FILLED BY AN INDEPENDENT DIRECTOR WITHIN 90 DAYS THE RESIGNATIONS ARE LIKELY TO STRENGTHEN THE HAND OF WILLIAM A FRANKE CHAIRMAN IN HIS BATTLE WITH MICHAEL J CONWAY CHIEF EXECUTIVE OFFICER AS THEY SEEK CONTROL OF THE COMPANY AMID EFFORTS TO BRING AMERICA WEST OUT OF CHAPTER 11 BANKRUPTCY PROCEEDINGS MR O'CALLAHAN AND THE OTHER DEPARTING DIRECTOR TIBOR SALLAY BOTH VOTED WITH MR CONWAY IN FAVOR OF THE PRITZKERLED BID WHICH WOULD HAVE BOUGHT OUT CERTAIN CREDITORS FOR 90 MILLION AS A PRELUDE TO OWNING THE PHOENIXBASED AIRLINE AFTER EMERGING FROM BANKRUPTCY COURT BUT LED BY MR FRANKE AMERICA WEST'S BOARD REJECTED THE BID 64 MR FRANKE SAID THE PROPOSAL WHICH INCLUDED WERTHEIM SCHRODER & CO WOULD HAVE GIVEN THE BILLIONAIRE PRITZKERS UNFAIR ADVANTAGE AGAINST OTHER INVESTORS WHO MAY WANT TO BUY THE COMPANY THE DEPARTURE OF MR O'CALLAHAN ALSO UNDERSCORES EFFORTS BY GPA TO STRENGTHEN ITS CONTROL THE COMPANY WHICH LEASES 16 AIRBUS A320S TO AMERICA WEST HAS LENT AMERICA WEST ABOUT 70 MILLION SINCE THE COMPANY FILED FOR CHAPTER 11 PROTECTION IN JUNE 1991 GPA ALSO HAS APPOINTED TWO BOARD MEMBERS SINCE THEN INCLUDING MR O'CALLAHAN TO REPRESENT ITS INTERESTS UNDER THE LOAN TERMS AMERICA WEST HAD A 836 MILLION PAYMENT DUE YESTERDAY TO GPA AND OTHER LENDERS BUT THE CREDITORS GRANTED AMERICA WEST AN EXTENSION WHICH WAS APPROVED BY A FEDERAL BANKRUPTCY JUDGE IN PHOENIX AS PART OF THE EXTENSION GPA WITHDREW ITS NOMINATION OF MR O'CALLAHAN THE RETIRED 60YEAROLD EXECUTIVE SAID HE COULDN'T STAY ON THE BOARD AS AN INDEPENDENT DIRECTOR BECAUSE GPA RENEGOTIATED ITS LETTER OF AGREEMENT WITH AMERICA WEST SAYING INDEPENDENT DIRECTORS CANNOT BE CURRENT OR FORMER EMPLOYEES OF ANY CREDITOR I WANTED TO STAY AS A DIRECTOR AND I THINK I'VE BEEN DOING A GOOD JOB BUT I HAD NO CHOICE HE SAYS MR O'CALLAHAN SAYS HE ANGERED GPA BECAUSE HE VOTED IN FAVOR OF THE PRITZKERLED BID WHILE GPA OPPOSED IT HE SAYS GPA FEARS THE PRITZKERS WILL RENEGOTIATE THE A320 LEASES WHICH MR O'CALLAHAN SAYS COSTS AMERICA WEST 285000 A MONTH PER PLANE MR O'CALLAHAN SAYS THE LEASE RATES ARE TOO HIGH AMERICA WEST ACKNOWLEDGED THAT ITS CURRENT RATE ON A320S IS HIGHER THAN MARKET VALUE RATES WHICH IT PUTS BETWEEN 235000 AND 250000 A MONTH THE PRITZKER FAMILY WHICH OWNS HYATT CORP AND ONCE OWNED NOWDEFUNCT BRANIFF AIRLINES DECLINED TO COMMENT ON THE BOARD RESIGNATIONS HOWEVER A PERSON CLOSE TO THE FAMILY SAID THE RESIGNATIONS WOULDN'T DETER THE FAMILY'S EFFORTS TO GAIN CONTROL OF AMERICA WEST A SPOKESMAN FOR GPA REACHED IN SHANNON IRELAND SAID THE COMPANY HADN'T ANY COMMENT ON ANY OF MR O'CALLAHAN'S REMARKS 9310010099 931001 LEISURE & ARTS BOOKSHELF WHEN PRIVATE DREAMS ARE PUBLIC PROPERTY BY BRUCE BAWER ALBANIA'S FINEST LIVING NOVELIST THESE WORDS WHICH ARE ROUTINELY APPENDED NOWADAYS TO THE NAME OF 57YEAROLD ISMAIL KADARE MIGHT APPEAR TO AMERICAN READERS TO PLACE HIM IN PRETTY MUCH THE SAME UNSEXY ESOTERIC CATEGORY AS SAY MONGOLIA'S BEST WATERCOLORIST OR BOLIVIA'S TOP HELDENTENOR TO DISMISS HIM IN SHORT AS A LOCAL HERO UNDESERVING OF SERIOUS STATESIDE ATTENTION THIS IS UNFORTUNATE FOR MR KADARE WHO EMIGRATED TO PARIS IN 1990 HAPPENS TO BE ONE OF THE MOST COMPELLING NOVELISTS NOW WRITING IN ANY LANGUAGE TO BE SURE HIS FICTION IS JUST ABOUT AS GRIM AND EXOTIC AS ONE MIGHT EXPECT FROM SOMEONE WHOSE HOMELAND HAS LONG BEEN CONSIDERED THE MOST BACKWARD ISOLATED AND BEFORE THE FALL OF COMMUNISM OPPRESSIVE STATE IN EUROPE TYPICAL OF HIS WORK IS HIS POWERFUL DEBUT NOVEL THE GENERAL OF THE DEAD ARMY 1963 IN WHICH AN ITALIAN GENERAL GOES TO ALBANIA TO TRACK DOWN DIG UP AND TAKE HOME THE REMAINS OF HIS COUNTRYMEN WHO DIED THERE IN WORLD WAR II FOR 18 MONTHS HIS LIFE IS RAIN MUD AND CORPSES IN A PRIMITIVE NIGHTMARISH LAND OF GRINDING POVERTY AND ANCIENT BLOOD FEUDS IT'S NOT EXACTLY ANN BEATTIE COUNTRY INDEED SO ALIEN TO MOST AMERICANS IS MR KADARE'S LITTLE CORNER OF THE WORLD THAT IT SEEMS ONLY FITTINGLY WEIRD FOR THE NEWLY ISSUED US EDITION OF HIS 1981 NOVEL THE PALACE OF DREAMS MORROW 203 PAGES 19 TO BE A TRANSLATION OF A TRANSLATION BARBARA BRAY WORKED NOT FROM THE ORIGINAL WHICH WAS BANNED BY THE ALBANIAN GOVERNMENT IMMEDIATELY AFTER PUBLICATION BUT FROM JUSUF VRIONI'S FRENCH TRANSLATION CENTERING ON A YOUNG MAN NAMED MARKALEM WHO LIVES WITH HIS WIDOWED MOTHER THE PALACE OF DREAMS IS SET IN THE BALKAN CAPITAL OF A MUSLIM REALM THAT RESEMBLES THE OTTOMAN EMPIRE THOUGH THE REALLIFE EMPIRE WHICH INCLUDED ALBANIA AND WAS DISSOLVED IN 1918 HAD ITS CAPITAL AT CONSTANTINOPLE NOW ISTANBUL THE CITY'S NAME APPEARS NOWHERE IN THE NOVEL NOR DOES MR KADARE DATE HIS STORY PRECISELY THE NAMELESS CITY HOVERS BETWEEN MYTH AND HISTORICAL REALITY THE HISTORICAL REALITY BEING ONE THAT TO MANY IS ITSELF AS REMOTE AS MYTH MARKALEM ISN'T PARTICULARLY SMART OR AMBITIOUS BUT BECAUSE HIS MOTHER BELONGS TO THE PROUD AND INFLUENTIAL QUPRILI FAMILY THE NAIVE YOUTH OBTAINS A JOB IN THE TABIR SARRAIL OR PALACE OF DREAMS THE EMPIRE'S MOST MYSTERIOUS AND BIZARRE INSTITUTION HOUSED IN A VAST BUILDING THAT ITSELF SEEMS LIKE SOMETHING OUT OF A DREAM THE TABIR SARRAIL HAS AGENTS POSTED ALL OVER THE EMPIRE TO WHOM PEOPLE RANGING FROM THE LOWLIEST PEASANT TO THE SULTAN HIMSELF SUBMIT ACCOUNTS OF THEIR DREAMS AT THE PALACE WORKERS SORT THROUGH AND INTERPRET THOSE ACCOUNTS WITH AN EYE TO DETECTING PORTENTS OF IMPERIAL TRIUMPH AND DOOM EVERY FRIDAY ONE SELECTED MASTER DREAM IS SUBMITTED PERSONALLY TO THE SULTAN AND CONSULTED IN THE FORMULATION OF IMPERIAL POLICY AT FIRST MARKALEM WHOSE HALFEUROPEAN HALFARABIC NAME REFLECTS NOT ONLY HIS OWN MIXED ETHNIC BACKGROUND BUT THE EMPIRE'S MULTICULTURAL MAKEUP VIEWS HIS WORKPLACE AS BENIGN YET HE SOON GLIMPSES THE DARK UNDERBELLY OF THE TABIR SARRAILAND OF THE STATE THAT IT SERVES DREAMERS HE LEARNS ARE OCCASIONALLY BROUGHT IN FOR QUESTIONING SOME ARE TORTURED TO DEATH A DREAM THAT CROSSES HIS DESK EVENTUALLY BECOMES A MASTER DREAM THAT IMPERILS THE QUPRILIS AND DRAMATICALLY CHANGES MARKALEM'S FORTUNES SPARE SUSPENSEFUL AND QUIETLY TERRIFYING THIS IS A NOVEL THAT MANY WOULD CALL KAFKAESQUE YET TO PIGEONHOLE IT IN THIS FASHION WOULD BE TO PAY INSUFFICIENT TRIBUTE TO THE FRESHNESS AND FORCE OF ITS VISION OF A TOTALITARIAN SYSTEM THAT SEEKS TO CONTROL NOT ONLY CONSCIOUS THOUGHTS BUT SUBCONSCIOUS IMAGININGS THE NOVEL'S BLEAK TONE ITS VIVID DEPICTION OF A WORLD SUFFUSED WITH COINCIDENCE AND WEIRD INTRIGUE AND ITS EXPERT SHAPE AND PACING AND CONTROL RECALL SUCH FIRSTRATE NOVELS AS ELIAS CANETTI'S AUTO DA FE AND PAUL AUSTER'S THE MUSIC OF CHANCE HOW DID A NOVEL THAT IS PLAINLY INTENDED AS A CRITICAL COMMENTARY ON COMMUNIST THOUGHT CONTROL EVER GET PUBLISHED IN 1981 ALBANIA THE ANSWER MAY LIE PARTLY IN THE FACT THAT THE BOOK TREATS ALBANIAN CULTURE WITH RESPECT AND SHOWS ALBANIANS AS GOOD GUYS BEING BRUTALIZED BY TURKS IT CAN THEREFORE BE READ AS AN IMPLICIT INDICTMENT NOT OF ALBANIA'S COLD WARERA LEADERS WHO ALONE IN EASTERN EUROPE TOOK ORDERS FROM BEIJING NOT MOSCOW BUT OF THE SOVIET EMPIRE'S EQUIVALENT OF THE TABIR SARRAIL THE KREMLIN YET ONE MEASURE OF THIS NOVEL'S MERIT IS THAT THE IRON CURTAIN'S COLLAPSE FAR FROM TURNING IT INTO A DATED POLITICAL STATEMENT MAKES IT EASIER TO PERCEIVE ITS UNIVERSAL RELEVANCE ITS ABILITY TO SPEAK TO READERS BEYOND THE SOCIOPOLITICAL CONTEXT IN WHICH IT WAS WRITTEN IN 1993 AMERICA AS IN 1981 ALBANIA THIS BOOK CHILLINGLY ILLUMINATES THE RELATION BETWEEN STATE AND INDIVIDUAL BETWEEN PUBLIC ROLES AND PRIVATE DREAMS HELPING US TO GRASP WHAT IT CAN MEAN FOR A NATION TO BE A PRISON AND DEMONSTRATING THAT UNDER A DESPOTIC REGIME EVEN HIGH PRIVILEGE CAN BE A KIND OF CAPTIVITY IN THE PALACE OF DREAMS MR KADARE HAS COMPOSED NOT ONLY A COURAGEOUS INDICTMENT OF MARXIST TYRANNY BUT A REMARKABLE LITERARY WORK OF INTERNATIONAL STATURE 9310010098 931001 MARKETING & MEDIA SCHOLASTIC INC UNVEILS ONLINE COMPUTER NETWORK FOR SCHOOLS NEW YORK SCHOLASTIC INC A PUBLISHER OF CHILDREN'S BOOKS CLASSROOM MAGAZINES AND OTHER EDUCATIONAL PRODUCTS SAID IT LAUNCHED A COMPUTER ONLINE NETWORK AIMED AT TEACHERS STUDENTS AND SCHOOLS THE SCHOLASTIC NETWORK PRODUCED THROUGH AMERICA ONLINE INC VIENNA VA WILL PROVIDE SCHOOLS WITH INFORMATION RESOURCES AND ACTIVITIES VIA COMPUTER MODEM AND TELEPHONE LINE THE SYSTEM IS AVAILABLE FOR A 295 ANNUAL FIXED FEE THE ONLINE NETWORK WILL PROVIDE LIVE CHAT LINES AND BULLETIN BOARD CONVERSATIONS WITH CHILDREN'S AUTHORS AND POLITICIANS AMONG THE PEOPLE LINED UP FOR THIS ACADEMIC YEAR AUTHORS FRANK ASCH AND WALTER DEAN MYERS POLITICAL FIGURES AL GORE AND HILLARY RODHAM CLINTON AND FILMMAKER KEN BURNS 9310010097 931001 FIRST LADY FAVORS GUN TAX TO FUND HEALTHCARE PLAN WASHINGTON HILLARY RODHAM CLINTON SAID SHE PERSONALLY FAVORS A PROPOSAL BY SEN BILL BRADLEY D NJ THAT WOULD RAISE MONEY FOR HEALTHCARE REFORM BY IMPOSING A 25 SALES TAX ON HANDGUNS AND AUTOMATIC WEAPONS ALONG WITH A STEEP BOOST TO 2500 IN THE LICENSING FEE FOR GUN DEALERS SPEAKING PERSONALLY I'M ALL FOR THAT THE FIRST LADY SAID IN TESTIMONY BEFORE THE SENATE FINANCE COMMITTEE HER FIFTH AND FINAL CONGRESSIONAL APPEARANCE IN THREE DAYS TO HELP SELL PRESIDENT CLINTON'S HEALTH REFORM PLAN BUT MRS CLINTON DIDN'T INDICATE WHETHER THE ADMINISTRATION IS CONSIDERING THE IDEA AS A REVENUE SOURCE SEN BRADLEY SAID THE SALES TAX AND THE INCREASE IN DEALERS' FEES WHICH ARE NOW AS MUCH AS 75 WOULD RAISE 600 MILLION THAT WOULD BE A TAX DIRECTLY ON THE PURVEYORS OF VIOLENCE HE SAID 9310010096 931001 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 5 HIGH 3 1/2 LOW 4 NEAR CLOSING BID 5 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 CHRGE 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 311 60 TO 119 DAYS 320 120 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 318 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 263 THREE MONTHS 275 SIX MONTHS 287 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 322 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 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 SEPTEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 290 13 WEEKS 302 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 669 60 DAYS 676 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 668 60 DAYS 678 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 9310010095 931001 ADMINISTRATION TO UNVEIL REVISED ANTIDRUG POLICY WASHINGTON THE CLINTON ADMINISTRATION WILL SOON ANNOUNCE A SUBSTANTIAL REVISION IN THE GOVERNMENT'S ANTIDRUG STRATEGY TO PUT MORE EMPHASIS ON PREVENTION AND TREATMENT AND LESS ON INTERDICTION AND POLICE EFFORTS THE PLAN WHICH IS STILL IN DRAFT FORM RECOMMENDS MOVING AWAY FROM MILITARISTIC WAR ON DRUGS RHETORIC IN FAVOR OF APPROACHING DRUG ABUSE MORE AS A PUBLICHEALTH PROBLEM THE STRATEGY WILL CALL FOR TARGETING ESPECIALLY THE 30 OF DRUG USERS WHO ARE ADDICTS AND WHO CONSUME 70 OF THE NARCOTICS AND THE REPORT WILL RECOMMEND BOTH EXPANDING TREATMENT OPPORTUNITIES FOR PEOPLE IN PRISON AND USING TREATMENT AS AN INCENTIVE FOR SOME TO BYPASS INCARCERATION WHILE CALLING FOR CHANGING THE EMPHASIS FROM POLICE TO PREVENTION EFFORTS THE STRATEGY DOES SAY DRUG OFFENDERS SHOULD BE CERTAIN THEY WILL RECEIVE SOME PUNISHMENT WHEN THEY FIRST COME IN CONTACT WITH LAW ENFORCEMENT THE DRAFT REPORT IS CRITICAL OF MANDATORY MINIMUM SENTENCES HOWEVER SAYING THEY DISCRIMINATE AGAINST LOWLEVEL DRUG PUSHERS BLACKS AND HISPANICS YOUNG AFRICANAMERICAN MALES IN INNER CITIES ARE A CRITICAL TARGET GROUP FOR PREVENTION PROGRAMS THE REPORT WILL SAY 9310010094 931001 MARKETING & MEDIA ADVERTISING BUSINESSTOBUSINESS ADS NEED MORE PIZAZZ IN PITCH STUDY SAYS BY LAURA BIRD A RECENT MICROSOFT MAGAZINE AD SHOWED ONE WHITE EGG THREE SPECKLED EGGS AND A FIFTH COVERED WITH INK STAINS WHAT IN THE WORLD DO EGGS HAVE TO DO WITH SOFTWARE UNFORTUNATELY FOR MICROSOFT MOST READERS DIDN'T BOTHER TO PERUSE THE AD LONG ENOUGH TO FIND OUT SO SAYS A NEW STUDY OF BUSINESSTOBUSINESS PRINT ADVERTISING WHICH CONCLUDES THAT WHEN COMPANIES MAKE PITCHES TO THEIR BUSINESS CUSTOMERS THEY OFTEN COME UP WITH ADS THAT ARE ABOUT AS PROVOCATIVE AS THE TECHNICAL PRODUCTS THEY TRY TO SELL ROPER STARCH WORLDWIDE A NEW YORK COPY TESTING FIRM INTERVIEWED MORE THAN 10000 REGULAR READERS OF TRANSPORTATION ARCHITECTURE AND OFFICEPRODUCT JOURNALS OVERALL THE SPECIALTY MAGAZINE ADS ATTRACTED MUCH LESS ATTENTION THAN ADS IN CONSUMER MAGAZINES FOR INSTANCE THE MICROSOFT AD WAS READ BY 35 FEWER PEOPLE THAN THE AVERAGE PRINT AD I THINK SOME BUSINESS ADVERTISERS ARE WONDERING WHY AREN'T MY ADS DOING BETTER WHEN THEY'RE PLACED WHERE THEY SHOULD BE DOING WELL' SAYS PHIL SAWYER EDITOR OF STARCH TESTED COPY THE ROPER NEWSLETTER THAT ANALYZED THE DATA BUT THE NEGATIVE FINDINGS COME AT A TIME WHEN BUSINESSTOBUSINESS ADVERTISING IS ACTUALLY A RARE BRIGHT SPOT ON MADISON AVENUE BUSINESSTOBUSINESS AD SPENDING INCREASED 9 TO MORE THAN 4 BILLION IN 1992 FROM 1991 ACCORDING TO COMPETITIVE MEDIA REPORTING THAT COMPARES WITH STINGY GROWTH IN OVERALL US AD SPENDING OF LESS THAN 4 DURING THE SAME PERIOD ACCORDING TO INTERPUBLIC GROUP'S MCCANNERICKSON PUBLISHERS OF BUSINESS MAGAZINES ARE QUICK TO DISPUTE THE STARCH FINDINGS CAHNERS PUBLISHING CO A UNIT OF REED ELSEVIER WHICH PUBLISHES SUCH MAGAZINES AS INTERIOR DEISGNER AND PROFESSIONAL BUILDER FOUND IN ONE OF ITS OWN STUDIES THAT TRADE MAGAZINE ADS ARE THE THIRD MOST IMPORTANT SOURCE OF INFORMATION ABOUT NEW PRODUCTS AFTER DISCUSSIONS WITH COLLEAGUES AND TECHNICAL MANUALS A CAHNERS SPOKESMAN SAYS THE STARCH STUDY DOESN'T TAKE INTO ACCOUNT THAT EVEN IN NARROWLY DEFINED TRADE JOURNALS ADVERTISERS DON'T AIM AT ALL THE READERS BUT AT NARROWER SUBGROUPS BUSINESSTOBUSINESS ADVERTISING HAS LONG BEEN A DREARY BACKWATER IN THE GLAMOROUS FIELD OF ADVERTISING MANY BIG AGENCIES HAVE BEEN SLOW TO REALIZE THE IMPORTANT ROLE IT IS LIKELY TO PLAY IN THEIR FUTURES AD INDUSTRY EXPERTS SAY THE CREATIVE HOT SHOPS OF YESTERDAY WEREN'T EXCITED ABOUT BUSINESSTOBUSINESS BECAUSE THE NARROW AUDIENCE WOULDN'T MAKE THE AGENCY FAMOUS SAYS DON PEPPERS A MARKETING AND BUSINESS DEVELOPMENT CONSULTANT AND FORMER EXECUTIVE AT CHIAT/DAY BUT NOW CONSUMERPRODUCT CLIENTS AREN'T THE DEPENDABLE SOURCE OF AD SPENDING GROWTH THAT THEY ONCE WERE THE CONSUMERMARKETING COMPANY IS GETTING TO BE A LESS AND LESS INTERESTING PROSPECT MR PEPPERS SAYS AGENCIES EAGER TO EXPAND THEIR REPERTOIRE INTO INTERACTIVE MEDIA SUCH AS EMAIL AND CDROM WOULD BE WISE TO COURT BUSINESSTOBUSINESS ADVERTISERS HE ADDS BECAUSE THEY ARE APT TO BE THE FIRST TO USE SUCH TECHNOLOGY AS MARKETING VEHICLES IN THE MEANTIME MR SAWYER ADVISES AGENCIES DOING BUSINESSTOBUSINESS ADS TO REMEMBER THE RULES THEY FOLLOW WHEN THEY CREATE ADS FOR SNEAKERS AND SOFT DRINKS TOO MANY OF THEM MAKE THE MISTAKE OF ASSUMING THAT READERS ARE AS INTERESTED IN THE TOPIC AS THE CREATORS OF THE AD ARE HE SAYS THE MICROSOFT EGG AD FOR EXAMPLE FAILED TO PROVIDE ANY DRAMA OR HUMAN INTEREST TO POTENTIAL SOFTWARE BUYERS WHO WHILE THEY MAY BE EGGHEADS AREN'T NECESSARILY INTERESTED IN EGGS THOSE EGGS APPARENTLY ARE MEANT TO ILLUSTRATE MICROSOFT'S UNORTHODOX APPROACH TO SOFTWARE ANOTHER MICROSOFT AD SCORED FAR BETTER IN THE STUDY IT SHOWS AN ATTRACTIVE MAN IN SHIRT SLEEVES GAZING LOVINGLY INTO THE SCREEN OF HIS COMPUTER MONITOR THAT ONE WAS READ BY 21 MORE POEPLE THAN THE AVERAGE AD THIS ONE HAS A HUMAN DIMENSION MR SAWYER SAYS THIS GUY IS REALLY HAPPY AND I'M HAPPY FOR HIM ROBERT CHANDLER THE TOP CREATIVE EXECUTIVE ON THE MICROSOFT ACCOUNT AT THE LOS ANGELES OFFICE OF WPP GROUP'S OGILVY & MATHER SAYS HE FINDS THE STUDY'S CONCLUSIONS TO BE LOGICAL WHEN YOU DO MORE THAN 300 ADS A YEAR HE SAYS SOME ARE GOING TO BE BETTER THAN OTHERS OTHER BUSINESS ADS FLOP BECAUSE THEY FAIL TO FOCUS ON A SINGLE BENEFIT AND FAIL TO ILLUSTRATE IT WITH A SINGLE DRAMATIC IMAGE AN AD FOR HEAVYDUTY FABRIC PRODUCED BY GLEN RAVEN MILLS SHOWS PHOTOS OF A TONY SADDLE SHOP SURROUNDED BY DESK ACCESSORIES BESIDES BEING CLUTTERED SAYS MR SAWYER THE PHOTO ISN'T CLEARLY ABOUT FABRIC IT COULD BE AN AD FOR DESK ACCESSORIES HARRY GOBBLE GLEN RAVEN'S MARKETING MANAGER BEGS TO DIFFER OUR TARGET IS CREATIVE TYPES MR GOBBLE SAYS WE'LL TAKE A CHANCE OF ERRING ON THE SIDE OF OVERDOING IT RATHER THAN UNDERDOING IT PERHAPS MOST IMPORTANTLY A BUSINESSTOBUSINESS AD SHOULD ADDRESS THE READER'S NEEDS AND NOT FOCUS ON THE ADVERTISER FOR EXAMPLE MR SAWYER CRITICIZES AN AD FOR AMERICAN METAL DOOR WHICH DRONES ON ABOUT THE COMPANY'S PROUD HISTORY AND WAS READ BY 58 FEWER PEOPLE THAN THE TYPICAL PRINT AD ON THE OTHER HAND HE PRAISES AN AD FOR PHILIPS LIGHTING A UNIT OF PHILIPS ELECTRONICS NV THAT FEATURES A HUMDRUM PHOTO OF HALOGEN LAMPS BUT TELLS CONSUMERS WHAT THEY WANT TO HEAR THINK OF THEM AS GROW LIGHTS FOR PROFITS EDMUND LAWLER WHO WRITES A REGULAR COLUMN ON BUSINESSTOBUSINESS ADVERTISING FOR BUSINESS MARKETING MAGAZINE THINKS BUSINESS ADVERTISERS ARE CLOSING THE CREATIVITY GAP PRODUCT LIFECYCLES ARE SO SHORT THAT ALL THAT DISTINGUISHES YOUR PRODUCT FROM ANOTHER IS THE QUALITY OF THE MESSAGE HE SAYS WHO'S NEWS INTERPUBLIC GROUP'S MCCANNERICKSON MADE TWO EXECUTIVE CHANGES CONNECTED TO ITS HIRING OF 44YEAROLD JAMES HEEKIN FORMERLY WITH WPP GROUP'S J WALTER THOMPSON AS PRESIDENT OF NORTH AMERICAN OPERATIONS MCCANN NAMED ITS NORTH AMERICAN VICE CHAIRMAN JOHN FITZGERALD 46 TO THE ADDITIONAL POST OF DIRECTOR OF MULTINATIONAL ACCOUNT DEVELOPMENT DAVID WARDEN 45 WAS REASSIGNED TO LONDON FROM NEW YORK WHERE HE HEADED THE AGENCY'S FLAGSHIP OFFICE AND ACCOUNTS INCLUDING COCACOLA NESTLE AND AMERICAN HOME PRODUCTS IN LONDON HE WILL BE CHAIRMAN OF MCCANN'S ADVERTISING AND MARKETING OPERATIONS ACCOUNT ALLIANCE CAPITAL MANAGEMENT TAPPED CALET HIRSCH & FERRELL OF NEW YORK WHICH RECENTLY ANNOUNCED A BUYOUT FROM PARENT ROSS ROY GROUP OF BLOOMFIELD HILLS MICH FOR ITS ESTIMATED 5 MILLION ACCOUNT AN ALLIANCE CAPITAL SPOKESWOMAN SAID THE COMPANY IS TAKING ADVANTAGE OF A GUARANTEED RESULTS OFFER IN WHICH THE AGENCY'S COMPENSATION IS TIED TO ADVERTISING RESULTS CHINESE ACQUISITION PUBLIC RELATIONS FIRM DANIEL J EDELMAN SAID IT ACQUIRED AN 80 STAKE IN INTERASIA COMMUNICATIONS BEIJING WHICH EDELMAN SAYS IS CHINA'S LARGEST INTERNATIONAL PR FIRM 9310010093 931001 INTERNATIONAL RUSSIA PLANS TO USE GOLD AS BACKING FOR BOND ISSUE MOSCOW THE RUSSIAN GOVERNMENT PLANS TO USE MORE THAN 100 TONS OF ITS GOLD RESERVES TO BACK A MAJOR ISSUE OF ONEYEAR BONDS PUTTING THE NATION'S NATURAL RESOURCES TO USE IN BOOSTING INVESTOR CONFIDENCE EACH OF THE 10000 BONDS WOULD BE BACKED BY 352 OUNCES OF GOLD SAID BELLA ZLATKIS HEAD OF THE SECURITIES DEPARTMENT AT THE RUSSIAN MINISTRY OF FINANCE THE BONDS WOULD SELL FOR THE RUBLE EQUIVALENT OF THE COST OF THAT GOLD BASED ON THE LONDON FIXING PRICE AT CURRENT PRICES MS ZLATKIS SAID EACH BOND COSTS ABOUT 148 MILLION RUBLES 126600 THE PROCEEDS OF THE BOND ISSUE WOULD BE USED TO COVER RUSSIA'S YAWNING BUDGET DEFICIT ESTIMATED BY THE GOVERNMENT AT 12 TRILLION RUBLES AT CURRENT PRICES THE ISSUE WOULD RAISE 15 TRILLION RUBLES FOR THE GOVERNMENT UNTIL THE BONDS COME DUE THE GOLD WOULD BE HELD IN A DEPOSITORY OPEN TO AUDITORS MS ZLATKIS SAID SEPARATELY THE US AND RUSSIA SIGNED A 11 BILLION DEBT RESCHEDULING AGREEMENT THAT GIVES MOSCOW MORE TIME TO PAY WHAT IT OWES TO WASHINGTON BY THE END OF THIS YEAR RUSSIA IS TO MAKE MORE THAN 400 MILLION IN OVERDUE PAYMENTS TO THE US 9310010092 931001 INTERNATIONAL ROLLSROYCE PLC OFFERING LONDON ROLLSROYCE PLC SAID ITS SHAREHOLDERS EXERCISED PREEMPTIVE RIGHTS TO BUY 872 OF THE SHARES OFFERED IN ITS 307 MILLION 464 MILLION ISSUE THE BRITISH MAKER OF JET ENGINES AND POWER GENERATORS WHICH IS UNRELATED TO THE LUXURYCAR MAKER SAID IT PLACED THE LEFTOVER SHARES WITH OTHER INVESTORS AT A PREMIUM OF 142 PENCE 215 CENTS AFTER EXPENSES OVER THE RIGHTS PRICE OF 130 PENCE ROLLSROYCE SAID IT WILL USE THE MONEY TO INVEST IN NEW TECHNOLOGY 9310010091 931001 BUSINESS BRIEFS ESYSTEMS INC'S GARLAND TEXAS ELECTRONICS DIVISION WAS AWARDED A 507 MILLION THREEYEAR AIR FORCE CONTRACT FOR A DIGITAL IMAGE PROCESSING SYSTEM TO BE DELIVERED IN 1996 MITSUBISHI MOTORS CORP ORDERED AND INSTALLED A CRAY RESEARCH INC C92A SUPERCOMPUTER THE FIRST OF THE C90 SERIES TO BE INSTALLED IN JAPAN SKOLNIKS INC IN ITS FIRST VENTURE OUTSIDE THE US ENTERED INTO A FRANCHISE AGREEMENT WITH FM FOOD SERVICES INC FRELIGHSBURG QUEBEC FM WILL OPEN AT LEAST 60 SKOLNIKS BAGEL BAKERY RESTAURANTS IN CANADA DURING THE NEXT FIVE YEARS WITH AN OPTION TO OPEN 60 MORE CHAMPION INDUSTRIES INC COMPLETED THE PURCHASE OF DALLAS PRINTING CO JACKSON MISS FOR 1040000 AND 18248 SHARES OF CHAMPION STOCK TAYLOR DEVICES INC RECEIVED A 11 MILLION US GOVERNMENT CONTRACT FOR HYDRAULIC SHOCK ISOLATORS 9310010089 931001 CLINTON PLANS TO MEET CHINA'S PRESIDENT IN EFFORT TO IMPROVE TROUBLED RELATIONS BY ROBERT S GREENBERGER AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WILL MEET WITH CHINESE PRESIDENT JIANG ZEMIN NEXT MONTH IN SEATTLE IN AN EFFORT TO IMPROVE DETERIORATING RELATIONS BETWEEN THE TWO NATIONS SECRETARY OF STATE WARREN CHRISTOPHER SAID HE AGREED WITH HIS CHINESE COUNTERPART QIAN QICHEN THAT THE MEETING WILL TRY TO RESCUE THE TWO COUNTRIES' RELATIONSHIP FROM SOME ROUGH WATERS ACCORDING TO WIRE SERVICE REPORTS MR CHRISTOPHER WHO IS IN NEW YORK ATTENDING THE OPENING SESSION OF THE UNITED NATIONS GENERAL ASSEMBLY ALSO SAID THAT JOHN SHATTUCK ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS WILL VISIT CHINA THIS MONTH ACCORDING TO SENIOR ADMINISTRATION OFFICIALS AGRICULTURE SECRETARY MIKE ESPY AND TREASURY SECRETARY LLOYD BENTSEN ALSO MAY TRAVEL TO CHINA IN THE COMING MONTHS TO PURSUE VARIOUS INITIATIVES AS PART OF A PENDING REVIEW OF US POLICY TOWARD CHINA THE ADMINISTRATION ALSO IS CONSIDERING RESUMING HIGHLEVEL CONTACTS BETWEEN THE US MILITARY AND THE PEOPLE'S LIBERATION ARMY PENTAGON OFFICIALS SAID THE WORLD HAS MOVED ON SINCE 1989 SAID AN ADMINISTRATION OFFICIAL REFERRING TO THE SUSPENSION OF MANY TIES BY THE BUSH ADMINISTRATION AFTER THE HARSH GOVERNMENT ATTACK ON STUDENT PROTESTERS IN BEIJING'S TIANANMEN SQUARE THAT YEAR IT'S JUST TIME TO RETHINK THIS THE WHOLE CHINA POLICY IS BEING SUBJECTED TO AN INTENSE SCRUTINY BY THE ADMINISTRATION THESE MOVES ILLUSTRATE THE IMPORTANCE MR CLINTON HAS PLACED ON THE RAPIDLY GROWING ECONOMIC TIES BETWEEN THE TWO COUNTRIES AT THE SAME TIME HOWEVER HE HAS SHOWN THAT HE WANTS CHINA TO CHANGE ITS PRACTICES THE RESULT HAS BEEN A POLICY THAT HAS ALTERNATED BETWEEN INDUCEMENTS TO BETTER BEHAVIOR AND THE IMPOSITION OF PENALTIES DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON CHARGED THAT MR BUSH WAS CODDLING CHINA'S LEADERS AND NOT PUNISHING BEIJING FOR HUMAN RIGHTS ABUSES BUT MR CLINTON RENEWED CHINA'S TRADING STATUS WITH THE US IN MAY WITH CONDITIONS FOR CHINA'S HUMAN RIGHTS BEHAVIOR HOWEVER RELATIONS BETWEEN THE TWO NATIONS HAVE BEEN STRAINED RECENTLY THE US IN AUGUST SLAPPED PENALTIES ON CHINA FOR EXPORTING CERTAIN MISSILE TECHNOLOGY TO PAKISTAN AND RECENT REPORTS THAT CHINA PLANS TO TEST A NUCLEAR WEAPON HAVE ANGERED THE US IN NEW YORK MR CHRISTOPHER SAID WE STILL ENTERTAIN HOPE CHINA WILL NOT RESUME TESTING HOWEVER A SENIOR US OFFICIAL SAID THAT CHINA ALREADY HAS A NUCLEAR EXPLOSIVE IN THE GROUND AND THAT IT WOULD BE TECHNICALLY MORE DANGEROUS FOR THE CHINESE TO STOP THEIR PLANNED TEST THAN TO GO AHEAD WITH IT AS PART OF THE ADMINISTRATION'S POLICY REVIEW WHICH WAS FIRST REPORTED IN THE LOS ANGELES TIMES YESTERDAY OFFICIALS SAID THAT NATIONAL SECURITY ADVISER ANTHONY LAKE MET LAST WEEKEND WITH THE CHINESE AMBASSADOR TO THE US LI DAOYU THE RESUMPTION OF HIGHLEVEL CONTACTS WITH THE CHINESE MILITARY IS STILL MORE AN IDEA THAN ANYTHING ELSE THE OFFICIAL SAID BUT IS CONSIDERED IMPORTANT BECAUSE OF THE KEY ROLE THE ARMY PLAYS IN CHINA AND IN MANY OF THE PROBLEMS THE US WANTS TO ADDRESS THESE INCLUDE NORTH KOREA'S NUCLEAR CAPABILITY CHINESE ARMS SALES AND CHINESE MILITARY ACTIVITY IN THE REGION HE SAID ALSO HE SAID IT APPEARS INCREASINGLY LIKELY THAT AT SOME POINT THE US WILL HAVE TO WORK WITH THE CHINESE ARMY IN PEACEKEEPING OPERATIONS THE US NEVER CUT OFF MILITARY CONTACTS WITH CHINA HE ADDED BUT HAS RESTRICTED THEM TO LOWLEVEL EXCHANGES IN RECENT YEARS HE SAID 9310010088 931001 HERMITAGE CAPITAL PRESIDENT SUSPENDED AND FINED BY NASD WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC FINED AND SUSPENDED HERMITAGE CAPITAL CORP AND ITS PRESIDENT AND FINED 29 OTHERS FOR VARIOUS VIOLATIONS IN THE UNDERWRITING AND SALE OF RADIATION CARE INC SHARES THE SELFREGULATORY ORGANIZATION FOR THE OVERTHECOUNTER INDUSTRY SAID HERMITAGE ACTING THROUGH THE COMPANY PRESIDENT BEVERLY W LANDSTREET IV FAILED TO PREPARE AND MAINTAIN ACCURATE BOOKS AND RECORDS IN CONNECTION WITH A NEWISSUE PUBLIC OFFERING OF RADIATION STOCK IN 1992 IT SAID HERMITAGE BASED IN NASHVILLE TENN ALSO FAILED TO SEE THAT ESCROWED FUNDS WERE PROPERLY INVESTED IN ADDITION THE NASD SAID HERMITAGE SOLD THE RADIATION SHARES WHICH WERE DEEMED A HOT ISSUE TO A RESTRICTED GROUP OF PEOPLE IN VIOLATION OF A SECURITIES LAW RADIATION CARE IS BASED IN ATLANTA THE NASD FINED HERMITAGE 100000 AND SUSPENDED THE FIRM FROM UNDERWRITING ACTIVITY FOR SIX MONTHS EXCEPT FOR PARTICIPATION THAT DOESN'T INVOLVE PRIMARY RECORDKEEPING RESPONSIBILITIES MR LANDSTREET WAS FINED 25000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY PRINCIPAL CAPACITY FOR SIX MONTHS HERMITAGE ALSO AGREED TO INSTALL A NEW MANAGEMENT WITHIN 180 DAYS AND SUBMIT TO A REAPPLICATION PROCEEDING THE NASD FINED THE 29 INDIVIDUALS A TOTAL OF 31771750 IT SAID THESE PEOPLE ALL REGISTERED WITH THE SECURITIES INDUSTRY PURCHASED RADIATION SHARES IN VIOLATION OF A RULE THAT PROHIBITS SECURITIES INDUSTRY OFFICIALS AND EMPLOYEES FROM BUYING HOT ISSUES MR LANDSTREET SAID HERMITAGE WENT INTO THE DEAL AS AN AGENT AND NOT AS A PRINCIPAL AND THE NASD MARKED US UP AS A PRINCIPAL HE SAID A PRINCIPAL HAS MORE RESPONSIBILITY THAN AN AGENT DOES IN COMPLYING WITH THE LAWS THE NASD CITED AS HAVING BEEN VIOLATED BY HERMITAGE HE SAID THE NASD ACTION HURTS BUT THE COMPANY WILL KEEP GOING 9310010087 931001 ANDERSEN ADDS ASAHI IN JAPAN MERGES FIRM WITH INOUE SAITO UNIT NEW YORK ARTHUR ANDERSEN WORLDWIDE ORGANIZATION ADMITTED ASAHI SHINWA & CO OF JAPAN AS A MEMBER FIRM ANDERSEN SAID THE MOVE MADE IT THE BIGGEST ACCOUNTING AND CONSULTING FIRM IN JAPAN ANDERSEN WHICH REPLACED ERNST & YOUNG AS ASAHI SHINWA'S INTERNATIONAL PARTNER IN DECEMBER SAID IT MERGED THE AUDIT FIRM INTO INOUE SAITO EIWA CORP FORMERLY THE ANDERSEN MEMBER FIRM IN JAPAN FORMING ASAHI & CO THERE RICHARD L MEASELLE MANAGING PARTNER OF US MEMBER FIRM ARTHUR ANDERSEN SAID THE ANNUAL REVENUE OF THE COMBINED JAPANESE FIRM WITH ANDERSEN'S CONSULTING UNIT IN JAPAN IS 300 MILLION OTHER ANDERSEN OFFICIALS IN THE US SAID ADMITTING ASAHI INCREASES ANDERSEN'S MARKET SHARE IN JAPAN TO ALMOST 25 FROM 10 AND GIVES ANDERSEN A MAJOR PRESENCE IN THE PACIFIC RIM MATSUTARO MORITA WHO HEADS ASAHI & CO SAID ASAHI A JAPANESE CORPORATION PLANS TO JOIN ANDERSEN IN CORPORATE FORM AS REQUIRED UNDER JAPANESE LAW MR MEASELLE SAID AS A RESULT OF THE MERGER ANDERSEN PLANS TO EXPAND IN CHINA AND IF PERMITTED BY THE US INTO VIETNAM AND EMPLOY 250 JAPANESE NATIONALS IN 18 COUNTRIES OUTSIDE JAPAN TO SERVE JAPANESE MULTINATIONAL COMPANIES 9310010086 931001 SOFTWARE TOOLWORKS SETTLES SEC CHARGES OF INSIDER TRADING SAN FRANCISCO THE SECURITIES AND EXCHANGE COMMISSION SAID SOFTWARE TOOLWORKS INC AND FOUR FORMER AND CURRENT OFFICERS AGREED TO PAY MORE THAN 2 MILLION TO SETTLE CHARGES OF INSIDER TRADING IN A FILING IN US DISTRICT COURT HERE THE FOUR OFFICIALS AGREED TO PAY THE GOVERNMENT THE AMOUNT OF THE LOSSES THEY AVOIDED BY SELLING ABOUT 13 MILLION OF THE COMPANY'S SHARES IN 1990 THE SEC ALLEGED THAT THE FOUR KNEW OF UNDISCLOSED PROBLEMS AT SOFTWARE TOOLWORKS WHEN THEY SOLD THE SHARES THE FOUR OFFICIALS ARE JOSEPH ABRAMS EXECUTIVE VICE PRESIDENT LESLIE CRANE A DIRECTOR AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER THEODORE HOFMANN DIRECTOR OF THE FINANCIAL ANALYSIS UNIT AND DENNIS O'MALLEY REGIONAL SALES MANAGER ACCORDING TO THE SETTLEMENT MR ABRAMS ALSO AGREED NOT TO SERVE AS AN OFFICER OR DIRECTOR OF A PUBLICLY HELD COMPANY ROBERT LLOYD SOFTWARE TOOLWORKS' PRESIDENT AND CEO SAID MR ABRAMS WILL STEP DOWN AS EXECUTIVE VICE PRESIDENT AND BECOME DIRECTOR OF INTERNATIONAL SALES TO COMPLY WITH THE SETTLEMENT MR LLOYD CALLED THE SEC SETTLEMENT OLD NEWS AND SAID SOFTWARE TOOLWORKS HAD CHANGED ITS MANAGEMENT AND BROUGHT IN A CONSULTANT TO STUDY INTERNAL CONTROLS AFTER THE ALLEGED VIOLATIONS OCCURRED THE COMPANY HAS ADMITTED NO WRONGDOING AND WE ARE PLEASED THIS HAS BEEN SETTLED MR LLOYD SAID 9310010085 931001 TECHNOLOGY & HEALTH HEMOPHILIACS SUE FIRMS FOUNDATION OVER AIDS IN '80S BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO HEMOPHILIACS WHO GOT AIDS FROM A BLOODCLOTTING FACTOR ALLEGED IN A FEDERAL CLASSACTION SUIT THAT FOUR COMPANIES AND THE NATIONAL HEMOPHILIA FOUNDATION WERE LARGELY RESPONSIBLE FOR THEIR ILLNESS THE LAWSUIT RAISES THE STAKES IN A BURGEONING LEGAL BATTLE BETWEEN HEMOPHILIA PATIENTS AND THE MANUFACTURERS OF THE CLOTTING FACTOR BAXTER INTERNATIONAL INC RHONEPOULENC RORER INC'S ARMOUR DIVISION THE ALPHA THERAPEUTIC CORP UNIT OF GREEN CROSS CORP OF JAPAN AND THE MILES INC UNIT OF BAYER AG THE ACTION FILED IN US DISTRICT COURT HERE BY CHICAGO ATTORNEY LEONARD RING AND NINE OTHER LAWYERS RAISES NEW ALLEGATIONS AS WELL AGAINST THE NATIONAL HEMOPHILIA GROUP HEMOPHILIACS AND THEIR FAMILIES CLAIM THE GROUP GAVE PATIENTS INACCURATE AND MISLEADING INFORMATION ABOUT THE SAFETY OF A CLOTTING INGREDIENT KNOWN AS FACTOR VIII THE FOUNDATION TOLD PATIENTS ANY AIDS RISK WAS MINIMAL WHILE HAVING REASON TO KNOW THAT ALL OF THE CLOTTING PRODUCT WAS CONTAMINATED WITH HIV THE VIRUS THAT CAUSES AIDS ACCORDING TO THE SUIT THE PLAINTIFFS ALLEGE THAT AT THE TIME THAT THE FOUNDATION MADE THESE RECOMMENDATIONS IN THE EARLY 1980S IT WAS FUNDED ALMOST ENTIRELY FROM CONTRIBUTIONS AND OTHER FINANCIAL SUPPORT GIVEN BY THE DEFENDANT MANUFACTURERS BUT DIDN'T TELL ITS MEMBERSHIP AND OTHER HEMOPHILIACS ABOUT THAT THE FOUNDATION DIDN'T RESPOND TO PHONE CALLS YESTERDAY SEEKING COMMENT ABOUT 10000 OF THE ESTIMATED 20000 HEMOPHILIACS IN THE US CONTRACTED AIDS THROUGH THE BLOODCLOTTING INGREDIENT EACH DOSE OF WHICH WAS DERIVED FROM THE BLOOD PLASMA OF THOUSANDS OF PEOPLE MANY OF THE BLOOD DONORS WERE MEMBERS OF HIGHRISK GROUPS FOR AIDS THE LAWSUIT CONTENDS AND INCLUDED PRISON INMATES THE COMPANIES WHICH HAVE BEEN ENGAGED IN TALKS WITH THE FOUNDATION ABOUT THE POSSIBILITY OF SETTING UP A FUND FOR PATIENTS HAVE SAID THEY HAD NO REASON TO SUSPECT FACTOR VIII COULD CAUSE AIDS BEFORE THEY TOOK ACTION IN 1984 FAMILIES WHO HAVE INDIVIDUALLY SUED THE COMPANIES HAVEN'T HAD A LOT OF SUCCESS IN COURT THOUGH THEY HAVE SETTLED SEVERAL CASES WITH THE MANUFACTURERS HOWEVER EARLY THIS YEAR A TAMPA FLA FEDERAL COURT JURY AWARDED A 2 MILLION AWARD AGAINST ARMOUR TO THE FAMILY OF A YOUNG BOY WHO DIED AFTER TAKING THE CLOTTING PRODUCT THAT VERDICT IS BEING APPEALED YESTERDAY'S CLASSACTION SEEKS UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES 9310010084 931001 LETTERS TO THE EDITOR IT'S STILL BROADWAY'S BIGGEST HIT CAPITALISM I READ YOUR SEPT 14 ASIDE BROADWAY MELODIES REGARDING 60 TICKET PRICES WITH SOME AMUSEMENT I AM NO APOLOGIST FOR UNION FEATHERBEDDING BUT THAT IS NOT WHY TICKET PRICES ARE SO HIGH AND AS THE PROTECTOR OF WESTERN CAPITALISM AND FREE MARKETS YOU SHOULD KNOW BETTER THE RELATIONSHIP BETWEEN COSTS AND PRICES IN THE LONG RUN IS TENUOUS AT BEST THE WALL STREET JOURNAL HAS CONSISTENTLY AND CORRECTLY PROMOTED THE POSITION THAT PRICES ARE PRIMARILY AND SHOULD REMAIN A FUNCTION OF MARKET FORCES SUCH AS SUPPLY AND DEMAND AND COMPETITION FROM LIKE OR SUBSTITUTE PRODUCTS TICKETS COST 60 FOR A SIMPLE REASON THE PUBLIC IS WILLING TO PAY IT IF THE SHOWS WERE BEING PLAYED TO HALFEMPTY HOUSES THEN THE PRODUCERS WOULD BE FORCED TO LOWER PRICES THE UNIONS WOULD THEN HAVE TO GO ALONG WITH LOWERING COSTS BECAUSE HAVING 14 MUSICIANS EMPLOYED IS BETTER THAN HAVING NONE IT IS UNFORTUNATE THAT HIGH PRICES KEEP MANY PEOPLE AWAY BUT SEEING MISS SAIGON IS NO MORE AN INALIENABLE RIGHT THAN OWNING A MERCEDES THERE ARE ALTERNATIVES SUCH AS REGIONAL THEATER OFFBROADWAY AND AS WE HAVE A LOT OF HERE IN BOSTON REPERTORY COMPANIES WHO PUT ON A DAMN GOOD SHOW FOR 25 A POP PUT YOUR MONEY THERE INSTEAD OR WAIT FOR THE TWOFERS AND MAYBE BROADWAY WILL GET THE MESSAGE 9310010083 931001 REDLAND PRETAX PROFIT FOR 1ST HALF ROSE 22 AS MARKETS IMPROVED SPECIAL TO THE WALL STREET JOURNAL LONDON UK BUILDINGMATERIALS GROUP REDLAND PLC SAID PRETAX PROFIT ROSE 22 IN THE FIRST HALF OF 1993 FROM A YEAR BEFORE ON IMPROVING CONDITIONS IN ALL ITS MARKETS BUT FRANCE REDLAND'S HALFYEAR PRETAX PROFIT OF 108 MILLION 1632 MILLION UP FROM 885 MILLION A YEAR BEFORE FIT THE HIGH END OF MARKET EXPECTATIONS REDLAND HELD ITS CASH INTERIM DIVIDEND AT 825 PENCE 1246 CENTS A SHARE BUT OFFERED AN ENHANCED SCRIP ALTERNATIVE WORTH 12375 PENCE A SHARE THE DECISION TO MAINTAIN THE CASH INTERIM DIVIDEND WAS EXPECTED ALSO AS EXPECTED REDLAND WAS OPTIMISTIC ABOUT BUSINESS CONDITIONS ARE IMPROVING IN ALL OUR MAJOR MARKETS WITH THE EXCEPTION OF FRANCE CHIEF EXECUTIVE ROBERT NAPIER SAID GERMANY IN PARTICULAR CONTINUES TO DO WELL AND THE LEAD INDICATORS REMAIN POSITIVE OUR PROFITS HAVE RECOVERED STRONGLY IN NORTH AMERICA THE UK IS AT LONG LAST SHOWING SOME SIGNS OF IMPROVEMENT REDLAND SAID SPECIFICALLY THAT IT SEES SIGNS OF IMPROVEMENT IN THE HOUSING MARKET IN THE UK WHICH COMBINED WITH BETTER PRICING SHOULD LEAD TO SOME RECOVERY IN PROFITS IT SAID NORTH AMERICAN PROFITS FOR THE YEAR WILL BE WELL AHEAD OF LAST YEAR REDLAND SAID THAT IF ALL SHAREHOLDERS TAKE UP ITS OFFER OF SCRIP FOR THE 1993 INTERIM DIVIDEND THE COMPANY WILL SAVE 121 MILLION IN UK TAX 9310010082 931001 STEELMAKERS APPEAL ITC RULINGS CLEARING FOREIGN PRODUCERS WASHINGTON US STEELMAKERS YESTERDAY APPEALED THE JULY RULINGS BY THE INTERNATIONAL TRADE COMMISSION THAT LARGELY CLEARED FOREIGN STEEL PRODUCERS OF UNFAIR TRADE PRACTICES THE FILING MARKS ANOTHER STEP BY THE NATION'S BIGGEST STEELMAKERS TO TRY TO REVERSE THE STUNNING RULINGS BY THE ITC THE APPEALS WERE FILED WITH THE COURT OF INTERNATIONAL TRADE IN NEW YORK THE ITC FAILED TO APPLY THE LAW PROPERLY IN THE HOT AND COLD ROLLED CASES SAID THE STEELMAKERS INCLUDING USX CORP AND BETHLEHEM STEEL CORP AFTER A YEARLONG INVESTIGATION THE COMMERCE DEPARTMENT FOUND THAT SUBSIDIZED AND DUMPED STEEL IMPORTS FROM 19 COUNTRIES WERE BEING SOLD HERE AT A HUGE 37 BELOW FAIR MARKET VALUE THE NEGATIVE DECISIONS BY THE ITC ARE OUTRAGEOUS ON THEIR FACE THE ITC FOUND THAT STEEL IMPORTS DIDN'T HURT US PRODUCERS IN MORE THAN HALF THE 74 CASES THE DOMESTIC CONCERNS FILED US STEELMAKERS CLAIMED IMPORTS RECEIVED UNFAIR SUBSIDIES OR SOLD THEIR PRODUCTS IN AMERICA AT BELOWMARKET PRICES STEELMAKERS ASKED THE ITC TO RECONSIDER ITS RULINGS BUT THE QUASIJUDICIAL GOVERNMENT BODY REFUSED IN AUGUST 9310010080 931001 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE STANDARD OF LIVING IN CHINESE CITIES IS THE HIGHEST IN GENERATIONS THE XINHUA NEWS AGENCY SAID ON THE EVE OF NATIONAL DAY A HOLIDAY WHEN THE GOVERNMENT TYPICALLY APPLAUDS ITS ACHIEVEMENTS CITY RESIDENTS' PER CAPITA INCOME LAST YEAR AVERAGED 1826 YUAN 320 OR 23 TIMES THE INFLATIONADJUSTED 1978 AVERAGE THE REPORT SAID THOUGH IT DIDN'T MENTION MUCH LOWER LIVING STANDARDS IN THE COUNTRYSIDE HOME TO 75 OF THE POPULATION PER CAPITA RURAL INCOMES AVERAGED 784 YUAN IN 1992 LITTLE CHANGED FROM THE MID1980S LAST YEAR URBANITES CONSUMED AN AVERAGE OF 52 POUNDS OF MEAT UP 60 FROM 1978 22 POUNDS OF EGGS UP 160 AND 18 POUNDS OF SEAFOOD UP 17 THEY ALSO HAD MORE LIVING SPACE AN AVERAGE OF 108 SQUARE FEET PER PERSON MORE THAN DOUBLE THE 45 SQUARE FEET IN 1978 AS OF LAST JUNE COLOR TELEVISION SETS WERE IN 78 OF URBAN HOUSEHOLDS WASHING MACHINES IN 85 AND REFRIGERATORS IN 55 THE GERMAN BUNDESTAG THE LOWER HOUSE OF PARLIAMENT SET UP A COMMITTEE TO INVESTIGATE THE TREUHANDANSTALT THE GOVERNMENT AGENCY THAT IS PRIVATIZING COMPANIES THAT WERE OWNED BY THE FORMER EAST GERMANY THE OPPOSITION SOCIAL DEMOCRATIC PARTY PROPOSED THE PANEL WHICH WILL EXAMINE WHETHER THE TREUHAND CLOSED ANY EASTERN GERMAN ENTERPRISES THAT COULD HAVE SURVIVED THE GOVERNMENT SAID THE COMMITTEE COULD SCARE OFF POTENTIAL INVESTORS IMPEDING THE TREUHAND IN FINISHING ITS TASK OF SELLING STATERUN COMPANIES AND SAVING JOBS JAPAN'S JUSTICE MINISTRY AND BAR ASSOCIATION RECOMMENDED EASING RESTRICTIONS ON THE PRACTICE OF LAW BY FOREIGNERS BUT THE PROPOSALS WON'T GO TO PARLIAMENT UNTIL NEXT YEAR FOREIGN LAWYERS ALLOWED TO OPERATE IN JAPAN ONLY SINCE 1987 TOTAL JUST 79 INCLUDING 49 AMERICANS US LAW FIRMS SAY THE RULES LIMITING THEM TO NONCOURTROOM WORK MAKE IT TOUGH TO CRACK THE MARKET AND DEPRIVE THEM OF BUSINESS THE CHANGES WOULD RELAX MINIMUM EXPERIENCE REQUIREMENTS IN JAPAN LOOSEN BANS ON HIRING OR FORMING PARTNERSHIPS WITH JAPANESE LAWYERS AND ON USING FOREIGN FIRMS' NAMES AND STUDY THE BAN ON ENGAGING IN ARBITRATION WHICH IS WIDELY USED BELGIUM FACES ITS MOST SERIOUS RECESSION SINCE 1981 AND ITS UNEMPLOYMENT RATE EXPECTED TO HIT 134 THIS YEAR COULD EXCEED 14 FOR THE NEXT FIVE YEARS THE GOVERNMENTFUNDED BUREAU DU PLAN SAID THE ECONOMIC PAIN HAS BEEN CAUSED BY WEAKNESS AMONG BELGIUM'S TRADING PARTNERS A LOSS OF COMPETITIVENESS BECAUSE OF THE STRONG BELGIAN FRANC AND LOWER INVESTMENT AND CONSUMER SPENDING BECAUSE OF HIGH JOBLESSNESS THE REPORT CAME AS THE GOVERNMENT UNIONS AND EMPLOYERS BEGIN NEGOTIATIONS TO CUT SOARING LABOR COSTS CHINA OPENED WHAT IT TERMED AN AMUSEMENT PARK BASED ON PRECEPTS OF CONFUCIUS THE PHILOSOPHER WHOSE TEACHINGS CENTERED ON THEORIES OF PERSONAL RESPONSIBILITY AND OFFICIAL BENEVOLENCE THE LIUYI PARK IN CONFUCIUS'S HOME CITY OF QUFU IN SHANDONG PROVINCE HAS SIX THEMED SECTIONS TRADITIONAL RITES MUSIC SHOOTING OXCART DRIVING READING AND CALCULATION CONFUCIUS WHO LIVED FROM 551479 BC IS CREDITED WITH ESTABLISHING THE PHILOSOPHICAL BASIS OF THE TRADITIONAL CHINESE STATE THE EUROPEAN COMMUNITY COMMISSION IS PREPARING A PLAN TO SPEED INVESTIGATIONS OF DUMPING OR SELLING A PRODUCT IN A FOREIGN MARKET AT A PRICE LOWER THAN IN THE HOME MARKET OFTEN IN A BID TO GRAB MARKET SHARE THESE INQUIRIES NOW OFTEN TAKE 18 MONTHS TO COMPLETE SOME EC MEMBERS COMPLAIN THAT THEIR INDUSTRIES ARE HURT BECAUSE THE TRADE BLOC'S PROCEDURES ARE TOO COMPLEX TO FIGHT IMPORTS DUMPED ON EC MARKETS AN EARLIER PLAN TO MAKE THE EC MORE NIMBLE BY SHIFTING UNFAIRTRADE CASES FROM EC GOVERNMENTS TO THE COMMISSION HAS BEEN DEADLOCKED FOR A YEAR TRADEDEFENSE PROCEDURES ARE EMERGING AS A PIVOTAL ISSUE IN WORLD TRADELIBERALIZATION TALKS UKRAINE CREATED 10000 FARMS IN THE FIRST HALF AND PRIVATIZED 562 FIRMS FIVE TIMES AS MANY AS IN ALL OF 1992 BUT UNSTABLE CONDITIONS ARE HINDERING MULTINATIONAL DEVELOPMENT LENDING BRITISH NEWSPAPER RADIO AND TELEVISION EDITORS BEGAN MAPPING A CAMPAIGN AGAINST GOVERNMENT PLANS TO TIGHTEN MEDIA CONTROLS SAYING SELFREGULATION WORKS WELL PRESSURE FOR PRIVACY LEGISLATION HAS BEEN GROWING FOLLOWING RACY STORIES ABOUT BRITAIN'S ROYAL FAMILY AND POLITICIANS 9310010079 931001 BROWNINGFERRIS TO INVEST IN GERMAN WASTE BUSINESS HOUSTON BROWNINGFERRIS INDUSTRIES INC ANNOUNCING ITS SECOND MAJOR ACQUISITION IN A MONTH AGREED TO PAY 375 MILLION IN CASH AND STOCK FOR A 50 STAKE IN THE WASTE BUSINESS OF GERMANY'S OTTO HOLDING INTERNATIONAL BV THE MOVE FOLLOWS AN AGREEMENT LAST MONTH BY BROWNINGFERRIS THE WORLD'S SECONDLARGEST WASTE CONCERN TO ACQUIRE WESTERN WASTE INDUSTRIES INC A MAJOR HAULER AND DUMP OPERATOR BASED IN GARDENA CALIF BOTH PROPOSED ACQUISITIONS WOULD HELP BROWNINGFERRIS INCREASE ITS SHARE OF IMPORTANT MARKETS THOUGH SOME INVESTORS HAVE QUESTIONED THE PRICE OF THE WESTERN WASTE TAKEOVER BROWNINGFERRIS STOCK VALUED AT ABOUT 400 MILLION OTTO'S WASTE OPERATIONS RANK AMONG THE TOP TIER IN GERMANY WITH ANNUAL REVENUE OF ABOUT 500 MILLION AND A MARKET SHARE OF ABOUT 12 BROWNINGFERRIS SAID BROWNINGFERRIS SAID IT WOULD PAY 25 OF THE PRICE IN STOCK AND 75 IN GERMAN CURRENCY THE AGREEMENT IS SUBJECT TO REGULATORY REVIEW IN THE US AND GERMANY BROWNINGFERRIS SAID IT EXPECTS TO COMPLETE THE ACQUISITION IN 90 TO 120 DAYS 9310010078 931001 MARKETING & MEDIA MADEMOISELLE NAMES CROW TO BE EDITOR IN CHIEF NEW YORK MADEMOISELLE MAGAZINE NAMED AS ITS NEW EDITOR IN CHIEF ELIZABETH CROW WHO RECENTLY LEFT HER JOB AS PRESIDENT OF GRUNER & JAHR USA PUBLISHING EFFECTIVE OCT 12 MS CROW WILL REPLACE GABE DOPPELT WHO RESIGNED WEDNESDAY FROM THE CONDE NAST PUBLICATIONS INC MAGAZINE THE REPLACEMENT OF MS DOPPELT WITH AN OLDER MORE EXPERIENCED EDITOR SEEMS TO FIT CONDE NAST'S STATED PLAN TO MAKE MADEMOISELLE MORE MAINSTREAM IN HER YEAR AS EDITOR MS DOPPELT HAS GIVEN MADEMOISELLE A MUCH HIPPER EDGE WITH ARTICLES LIKE ONE ON YOUNG LESBIANS AND ANOTHER ON HOW HAIR DYES CAN CAUSE CANCER DURING HER TENURE ADVERTISING REMAINED PRETTY STEADY BUT CIRCULATION DECLINED ESPECIALLY AT THE NEWSSTAND BERNARD LESER PRESIDENT OF CONDE NAST WHICH IS PART OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC SAID THAT DESPITE THE CHOICE OF A MORE MATURE EDITOR MADEMOISELLE WILL STILL BE DIRECTED TO THE YOUNG READER MOSTLY WOMEN IN THEIR 20S MS DOPPELT IS 33 YEARS OLD AND MS CROW IS IN HER MID40S 9310010076 931001 INTERNATIONAL YELTSIN'S FOES HOLED UP IN PARLIAMENT GIVEN A WAY OUT JOB CASH TO DEFECT BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW SUCH WEIGHTY ISSUES AS DEMOCRACY AND THE CONSTITUTION HAVE BROUGHT RUSSIA'S POLITICIANS TO A STANDOFF BUT GEORGY ZADONSKY IS TRYING TO RESOLVE THE CONFRONTATION BETWEEN RUSSIAN PRESIDENT BORIS YELTSIN AND THE HARDLINE PARLIAMENT BY APPEALING TO ANOTHER MORE BASIC MOTIVE GREED MR ZADONSKY MANS A QUIET OFFICE A FEW BLOCKS FROM THE TENSE SITUATION AT THE WHITE HOUSE RUSSIA'S PARLIAMENT NOW SURROUNDED BY GOVERNMENT TROOPS NO SIGN MARKS THE DOOR THE ROOM ECHOES FOR LACK OF FURNITURE THE WALLS ARE BARE STILL MR ZADONSKY RUNS ONE OF THE MOST IMPORTANT POWER CENTERS IN TOWN HIS OFFICE WAS SET UP TO WOO DEPUTIES TO MR YELTSIN'S SIDE ANY DEFECTING DEPUTY WALKING INTO ROOM 621 ON NOVY ARBAT STREET IS GUARANTEED A CUSHY JOB IN THE ADMINISTRATION TO SWEETEN THE POT AN OFFICE ACROSS THE HALL OFFERS LARGE CASH PAYOUTS IN OTHER WORDS IF YOU CAN'T BEAT THEM MAYBE YOU CAN BUY THEM BEFORE THE CRISIS MR ZADONSKY HIMSELF WAS A PEOPLE'S DEPUTY KNOWN TO QUARREL WITH THE YELTSIN GOVERNMENT TO THE DISMAY OF HIS COLLEAGUES STILL HOLED UP IN THE BESIEGED LEGISLATURE HE DEFECTED SOON AFTER MR YELTSIN ISSUED A DECREE DISSOLVING PARLIAMENT 10 DAYS AGO MR ZADONSKY NOW HAS A GOOD JOB IN MR YELTSIN'S GOVERNMENT RECRUITING OTHER DEFECTORS HE SEEMS TO BE PRETTY GOOD AT IT SO FAR HE SAYS ABOUT 200 DEPUTIES HAVE PHONED OR DROPPED BY HIS OFFICE OR AT THE MINISTRY OF LABOR 89 OF THOSE HAVE TAKEN THE MONEY AND RUN THAT'S A SIZABLE CHUNK OF THE 384 OR SO DEPUTIES A MIXTURE OF COMMUNISTS INDEPENDENTS AND WHAT SOME CHARACTERIZE AS POLITICAL WEASELS THAT THE GOVERNMENT HOPES TO WIN OVER MR ZADONSKY LOOKS CRISP IN HIS DOUBLEBREASTED SUIT SAFELY OUT OF PARLIAMENT HE SPENDS HIS NIGHTS AT HOME WITH HIS FAMILY THE DIEHARDS IN THE LEGISLATURE BY CONTRAST ARE LIVING ALMOST ATOP ONE ANOTHER IN A BUILDING LACKING PHONES WATER FUNCTIONING PLUMBING AND FOR MUCH OF THE DAY ELECTRICITY EVENINGS IN THE WHITE HOUSE MEAN DINING ON COLD CUTS BY CANDLELIGHT AND DONNING GAS MASKS WITH EVERY RUMOR OF AN ARMED ATTACK SMALL WONDER THE DEFECTIONS CONTINUE VLADIMIR KRYUCHKOV A CENTRIST PEOPLE'S DEPUTY FROM THE CITY OF KALUGA BAILED OUT OVER THE WEEKEND A FORMER JOURNALIST MR KRYUCHKOV BECAME DISILLUSIONED WITH THE STRUGGLE AND FOUND HIMSELF IN MR ZADONSKY'S OFFICE THEY'RE ALL FANATICS INSIDE THE WHITE HOUSE SAYS MR KRYUCHKOV A SHORT AND STOCKY MAN IN A BLACK LEATHER JACKET IN THREE YEARS AS A PEOPLE'S DEPUTY I'VE LEARNED ONE THING I CAN'T STAND POLITICS FOR DEFECTING HE GOT TWO MILLION RUBLES EQUAL TO ABOUT 2000 WHICH GOES A LONG WAY IN RUSSIA HE PROUDLY DISPLAYS HIS BOOTY AN ENVELOPE STUFFED WITH 40 CRISP 50000RUBLE NOTES THIS MONEY IS TAINTED WITH IRONY WHEN MR YELTSIN DISSOLVED PARLIAMENT HE ALSO SEIZED ITS BUDGET SO NOW A GUARD AND TWO PUDGY WOMEN IN POLYESTER DRESSES SIT AROUND A SAFE STUFFED WITH CASH WAITING TO BRIBE MEMBERS OF PARLIAMENT WITH PARLIAMENT'S OWN CASH NONE OF THIS BOTHERS MR KRYUCHKOV WHO TAKES AN APPLICATION FROM MR ZADONSKY IT ASKS APPLICANTS FOR VITAL STATISTICS AND ODDLY IF THEY HAVE EVER HELD A JOB I'LL FILL IT IN AND SEE WHAT THEY GIVE ME HE SAYS WITH A SHRUG DISHEVELED DEPUTY SERGEI NASOVETS GRABS AN APPLICATION TOO THEN LEAVES THE ROOM DOCUMENT IN HAND HE'S A LOT MORE CONSERVATIVE THAN I AM MR KRYUCHKOV SAYS I THINK HE FEELS A BIT HUMILIATED BY EVERYTHING THAT HAS HAPPENED SUCH FEELINGS HAVEN'T STOPPED PROMINENT ANTIYELTSIN POLITICIANS FROM DEFECTING ALEXANDER POCHINOK CHAIRMAN OF PARLIAMENT'S BUDGET COMMISSION WHICH TRIED TO SCUTTLE YELTSIN REFORMS IS NOW DEPUTY FINANCE MINISTER NIKOLAI RYABOV DEPUTY TO PARLIAMENT SPEAKER RUSLAN KHASBULATOV NOW HEADS THE ELECTION COMMISSION AND EVGENY AMBARTSUMOV FORMER HEAD OF THE LEGISLATURE'S FOREIGN AFFAIRS COMMISSION HAS AGREED TO DEFECT APPARENTLY IN RETURN FOR AN AMBASSADORSHIP THE TRAITORS HAVE ALL GONE SPITS IONA ANDRONOV MR AMBARTSUMOV'S FORMER DEPUTY WHO IS CONTINUING HIS LONELY VIGIL INSIDE PARLIAMENT AMBARTSUMOV SAID HE WAS LEAVING FOR POLITICAL REASONS BUT EVERYONE KNOWS THEY PROMISED TO MAKE HIM AMBASSADOR MR YELTSIN'S HEADHUNTERS HAVE APPROACHED DEPUTIES GINGERLY GIVEN THE TENSE SITUATION THEY HAVE LEFT FLYERS IN PARLIAMENTARY MAILBOXES ADVERTISING ROOM 621 BEFORE THE PHONES WENT DEAD IN PARLIAMENT THEY MADE DIRECT CALLS THE EFFORT SLOWED IN RECENT DAYS AS TROOPS LOYAL TO MR YELTSIN MOVED INTO POSITIONS AROUND THE WHITE HOUSE THERE ARE RUMORS THAT DEPUTIES WHO WISH TO LEAVE THE BUILDING CAN'T FEARING THE RAGTAG MILITIA THAT GUARDS PARLIAMENT STILL MR ZADONSKY STAYS AT HIS DESK UNTIL NINE EACH NIGHT WE HAVE TO GIVE THE DEPUTIES A CHANCE TO CALL AT ALMOST ANY HOUR HE SAYS TO KEEP UP THE MOMENTUM THE OFFICE AND THE LABOR MINISTRY NOW ARE TELEPHONING DEPUTIES' HOMES AT LEAST A DOZEN TIMES DEPUTIES' WIVES HAVE CALLED US BAD NAMES COMPLAINS GENNADY MILIKYAN RUSSIA'S MINISTER OF LABOR THE MAIN PROBLEM IS FINDING POSITIONS FOR DEFECTORS WITHOUT STRAINING RUSSIA'S ALREADY BLOATED BUREAUCRACY DEPUTIES ARE AIMING PRETTY HIGH SAYS MR MELIKYAN BASICALLY EVERYBODY WANTS TO BE A DEPUTY MINISTER THOUGH PARLIAMENT HAS CRITICIZED FOREIGN INVESTORS FOR THE RAPE OF RUSSIA'S NATURAL RESOURCES NO FEWER THAN FIVE DEFECTORS ARE DEMANDING TO BECOME DEPUTY MINISTERS OF FOREIGN TRADE A DEPUTY WHO ONCE DROVE A TRUCK NOW IS DEMANDING A SOFT JOB IN THE MINISTRY OF TRANSPORTATION MR MELIKYAN SAYS STILL THE YELTSIN ADMINISTRATION WILL TRY TO FIND JOBS FOR ALL THAT'S TRUE EVEN FOR PARLIAMENT SPEAKER KHASBULATOV MR YELTSIN'S NEMESIS SHOULD HE COME LOOKING FOR EMPLOYMENT IN PRINCIPLE WE COULD FIND A JOB WHERE KHASBULATOV COULD BE USEFUL MR ZADONSKY SAYS BUT I WOULDN'T WANT TO GIVE HIM ANYTHING WITH MUCH POWER THAT SAID MR ZADONSKY STOPS TO ANSWER THE PHONE ON THE LINE IS VLADIMIR VAROV A RECENTLY DEFECTED PEOPLE'S DEPUTY A FEW DAYS EARLIER MR ZADONSKY HELPED PLACE HIM IN A NEW VICE MINISTER'S POST BUT CAN'T REMEMBER WHICH ONE IT HITS HIM ONLY AFTER HE PUTS DOWN THE RECEIVER HE'S THE NEW DEPUTY MINISTER OF LABOR MR ZADONSKY EXCLAIMS I MADE HIM MY BOSS 9310010075 931001 HEARD ON THE STREET AS TRAMMELL CROW REIT SEEKS TO REVERSE FORTUNES INVESTORS SPOT TWO DIFFERENT PLAYS BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS IN ITS SHORT UNHAPPY LIFE TRAMMELL CROW REAL ESTATE INVESTORS HAS BEEN A DOG FOR SHAREHOLDERS WITH HOLDINGS CONSISTING PRIMARILY OF LAGGARD WAREHOUSE PROPERTIES DEVELOPED BY ITS CREATOR TRAMMELL CROW CO THE REAL ESTATE INVESTMENT TRUST WENT PUBLIC IN 1985 AT 15 A SHARE AND SANK LIKE A STONE YESTERDAY THE REIT'S SHARES CLOSED AT 2 1/8 UP 1/8 ON THE NEW YORK STOCK EXCHANGE COMPOSITE TAPE BUT NOW MANAGEMENT IS HOPING THAT A HOT MARKET FOR REIT STOCK OFFERINGS A RECENT NAME CHANGE TO AMERICAN INDUSTRIAL PROPERTIES REIT A NEW STOCK SYMBOL IND AN INDEPENDENT MANAGEMENT STRUCTURE AND A LONGER LEASE ON LIFE WILL TURN IT FROM A MUTT INTO A SHOW DOG OR AT LEAST A RELIABLE WORKING BREED YET THE FUTURE HANGS ON RESULTS OF A SHAREHOLDER VOTE TODAY ON WHETHER TO EXTEND THE LIFE OF THE REIT PERPETUALLY AND ELIMINATE A PLANNED 1997 LIQUIDATION THE CHANGE REQUIRES APPROVAL BY 80 OF ALL SHAREHOLDERS LATE YESTERDAY PRESIDENT AND CHIEF EXECUTIVE CHARLES WOLCOTT SAID THE COMPANY WAS CLOSE TO 80 BUT DIDN'T YET HAVE THE NECESSARY VOTES AND WAS SCRAMBLING IF THE COMPANY FALLS SHORT AT THE BALLOT BOX SOME ANALYSTS SAY IT MIGHT STILL BE AN INTERESTING PLAY ESPECIALLY IF THE SHARES DROP FURTHER ON NEWS OF A VOTE SETBACK A FORCED SALE OF ITS PROPERTIES MIGHT RETURN 250 OR 3 A SHARE THEY SAY ENOUGH TO OFFER A SOLID RETURN TO BOTTOMFISHERS IN TRIAGE YOU ALLOW SOME PATIENTS TO DIE SO OTHERS WILL LIVE SAYS BURLAND EAST AN ANALYST WITH KEMPER SECURITIES THIS MAY BE THAT KIND OF CASE IF THE VOTE GOES THE OTHER WAY AND THE COMPANY PREVAILS HOWEVER A HANDFUL OF INVESTORS AND ANALYSTS ARE STARTING TO THINK THAT A STOCK WITH SO LITTLE APPARENT DOWNSIDE RISK MIGHT BE AN INTERESTING PLAY MARTIN SMITH AN ACCOUNTANT FROM PITTSBURGH WHO TRACKS AND INVESTS IN REITS BOUGHT 2000 SHARES OF THE TRAMMELL CROW REIT AT 2 1/2 AND SAYS HE'S READY TO BUY A BUNCH MORE IF A DOG LIKE THIS COULD EARN ITS WAY OUT 2 COULD TURN TO 10 HE SAYS AT ITS AUG 31 ANNUAL MEETING THE REIT FAILED TO REACH THE 80 APPROVAL MARK BUT THE TALLY WAS CLOSE ENOUGH FOR DIRECTORS TO EXTEND THE VOTING PERIOD IN HOPES OF ROUNDING UP UNVOTED BALLOTS IF IT CAN JUST CLEAR THIS FINAL HURDLE THE NEW MANAGEMENT TEAM THINKS THERE MAY BE DAYLIGHT AHEAD MANAGERS SAY THEY HAVE ALREADY DEALT WITH THE REIT'S BIGGEST PROBLEMS BY ELIMINATING AN ADVISORY AGREEMENT WITH TRAMMELL CROW CO WHICH COLLECTED 18 MILLION IN FEES LAST YEAR AND BY RESTRUCTURING 180 MILLION IN ZEROCOUPON DEBT REDUCING THE AVERAGE INTEREST RATE TO 95 FROM 118 WHAT'S MORE NOW THAT AMERICAN INDUSTRIAL HAS CONVERTED TO SELFMANAGEMENT SAYS MR WOLCOTT A FORMER TRUST OFFICER WHO WAS BROUGHT BACK AFTER THE CROW TIES WERE SEVERED THE BUILTIN CONFLICTS OF AN ADVISERSPONSOR HAVE BEEN DISSOLVED UNDER THE OLD STRUCTURE FOR EXAMPLE TRAMMELL CROW CO RECEIVED DISPOSITION FEES REGARDLESS OF A PROPERTY'S SALE PRICE A GOOD DEAL FOR THE FEE RECIPIENT BUT NOT NECESSARILY FOR THE TRUST'S INVESTORS THE COMPANY BASED IN IRVING TEXAS HAS ABOUT 16 MILLION IN CASH AND CONTINUES TO PAY A 16CENT ANNUAL DIVIDEND RATE A 75 YIELD BASED ON YESTERDAY'S STOCK PRICE IF ITS 1997 EXECUTION IS STAYED ANALYSTS SAY THE CONCERN COULD BE IN A POSITION TO MERGE WITH ANOTHER REIT OR TO RAISE MONEY TO BUY ADDITIONAL PROPERTIES IF THEY CAN PULL THIS OFF THIS THING WOULD BE SO MARKETABLE SAYS BRUCE GARRISON A KIDDER PEABODY ANALYST MR GARRISON HASN'T TAKEN A POSITION ON THE STOCK BUT HE THINKS THERE'S POTENTIAL IF THE VOTE GOES THROUGH AND THE REIT CAN GET BIGGER THROUGH EXPANSION OR MERGER IF THE VOTE GOES THEIR WAY I THINK THEY'LL BE BESIEGED BY OPPORTUNITIES HE SAYS MR WOLCOTT BELIEVES THE NEW STRUCTURE WOULD PROVIDE THE KIND OF BROADER ACCESS TO CAPITAL THAT OTHER REITS CURRENTLY ENJOY HE THINKS THE COMPANY COULD ACQUIRE PROPERTIES THAT WOULD YIELD A 10 OR 11 ANNUAL RETURN WHICH WOULD ENABLE IT TO RAISE MONEY AT A COST OF 7 TO 8 AND WHILE HE CONCEDES THAT THE COMPANY'S EXISTING HOLDINGS AREN'T EXACTLY HOT PROPERTIES THEY STILL HAVE AN AVERAGE OCCUPANCY RATE BETTER THAN 80 AND SHOULD REBOUND AS THE ECONOMY IMPROVES BUT WHILE ANALYSTS GIVE MR WOLCOTT HIGH MARKS FOR REAL ESTATE ACUMEN AND FOR HIS DETERMINATION DOUBTS LINGER ABOUT HIS REVIVAL PLAN IN SOME QUARTERS EVEN IF SHAREHOLDERS APPROVE THE CHANGE SKEPTICS POINT OUT THE REIT STILL HAS A MARKET VALUE OF JUST 20 MILLION BECAUSE OF THAT NO WALL STREET FIRMS FOLLOW THE COMPANY ANY LONGER THOUGH SOME HAVE MET RECENTLY WITH MANAGEMENT TO HEAR THE TURNAROUND STRATEGY THE REIT WORLD HAS CHANGED SO DRAMATICALLY THAT UNLESS THEY GROW FAST ENOUGH TO GET ON PEOPLE'S RADAR SCREENS THE OPPORTUNITY WILL PASS THEM BY SAYS CATHERINE CRESWELL OF ALEX BROWN & SONS WHO WAS VISITED RECENTLY BY THE REIT STILL SHE ADDS I THINK THEY HAVE A GOOD IDEA AND THERE MAY BE SOME QUICK MONEY TO MAKE IF THEY CAN EFFECT THIS TURNAROUND