IN REGARD TO YOUR SEPT 9 ARTICLE LINK BETWEEN ALCOHOL VIOLENCE EXPLORED TRUST THOSE BRIGHT LIGHTS IN THEIR WHITE LAB COATS AND THE INTELLECTUAL GIANTS WHO PROVIDE THEM WITH THEIR FUNDING TO COME UP WITH YET ANOTHER USELESS FORAY INTO ANIMAL RESEARCH INDUCING MICE INTO AGGRESSIVE BEHAVIOR BY FORCING THEM TO TAKE A FEW GOOD BELTS HAS ABOUT AS MUCH RELEVANCE TO REDUCING ALCOHOLRELATED VIOLENCE AS ELECTROCUTING THE FEET OF DOGS IN ORDER TO STOP CHILDREN FROM STICKING THEIR FINGERS INTO POWER OUTLETS IT IS PATENTLY ABSURD TO TAKE AN ANIMAL THAT HAS NO INCLINATION TOWARD ALCOHOL USE AND ARTIFICIALLY CREATE A SITUATION WHERE IT ATTACKS ANOTHER ANIMAL AND ARGUE THAT THE FINDINGS WILL SOMEHOW LEAD TO A REDUCED RATE OF WIFE OR CHILD ABUSE THE MYRIAD VARIABLES INVOLVED IN THE REAL LIFE MANIFESTATION OF WHAT DOCTORS ARE TRYING TO STUDY IN THE LAB FAMILY UPBRINGING ECONOMIC CIRCUMSTANCES CULTURAL CONDITIONING HOME ENVIRONMENT PREVIOUS HISTORY WITH SUBSTANCE ABUSE MAKE SUCH EXPERIMENTS NOTHING MORE THAN A WAY FOR A FEW LUCKY RESEARCHERS TO REMAIN GAINFULLY EMPLOYED IT IS REALLY A SAD COMMENTARY ON OUR MORAL VALUE SYSTEM WHEN THE SCARCE DOLLARS NEEDED TO COMBAT PRESSING SOCIAL PROBLEMS GET DIRECTED AWAY FROM THE SOLUTIONS THAT CAN DO THE MOST GOOD AND TOWARD THE DEAD END OF THE ANIMAL RESEARCHERS' LABS 9310010073 931001 SUBCOMMITTEE IN HOUSE CLEARS NAFTA LEGISLATION WASHINGTON LEGISLATION NEEDED TO IMPLEMENT THE FREE TRADE AGREEMENT WITH MEXICO AND CANADA TOOK ITS FIRST STEP FORWARD ON CAPITOL HILL BUT ITS FATE IN THE HOUSE REMAINS IN DOUBT BY VOICE VOTE THE HOUSE WAYS AND MEANS TRADE SUBCOMMITTEE CLEARED THE BILL YESTERDAY THE PANEL LEFT SEVERAL CONTROVERSIAL ISSUES TOBE RESOLVED BY THE FULL WAYS AND MEANS COMMITTEE THEY INCLUDE HOW TO MAKE UP THE 25 BILLION IN TARIFF REVENUE THAT WOULD BE LOST WITH ENACTMENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT DURING SUBCOMMITTEE ACTION RUFUS YERXA THE DEPUTY US TRADE REPRESENTATIVE SAID THE CLINTON ADMINISTRATION IS SYMPATHETIC TO AT LEAST ONE CHANGE THAT TEXTILE MANUFACTURERS ARE SEEKING IN THE IMPLEMENTING LEGISLATION THE MODIFICATION PROPOSED BY REP LEWIS PAYNE D VA WOULD RETAIN FOR CONGRESS EVEN AFTER ENACTMENT OF NAFTA A SAY IN WHAT PRODUCTS WOULD QUALIFY FOR THE TREATY'S LOWTARIFF BENEFITS UNDER THE SOCALLED RULES OF ORIGIN THIS IS CLEARLY SOMETHING OF IMPORTANCE TO A NUMBER OF MEMBERS WITH TEXTILE INTERESTS REP PAYNE SAID 9310010071 931001 ECONOMY PERSONAL INCOME ROSE IN AUGUST AFTER 2 DECLINES FARMERS LANDLORDS RECOVER FROM DROUGHT FLOODS NEWHOME SALES DROP BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PERSONAL INCOME ROSE IN AUGUST AS FARMERS AND LANDLORDS RECOVERED FROM MIDWEST FLOODING AND SOUTHEAST DROUGHT THE COMMERCE DEPARTMENT SAID DISPOSABLE PERSONAL INCOME ADJUSTED FOR INFLATION INCREASED 12 IN AUGUST FOLLOWING REVISED DECLINES OF 05 IN JULY AND 02 IN JUNE JOSEPH LIRO CHIEF ECONOMIST FOR CONSULTING FIRM SG WARBURG & CO IN NEW YORK NOTED THAT WHILE FARM AND RENTAL INCOME PROVIDED THE BIGGEST BOOST FOR PERSONAL INCOME WAGES AND SALARIES HAVE ALSO PICKED UP A BIT WAGE AND SALARY DISBURSEMENTS ROSE 09 IN AUGUST AND 05 IN JULY THAT SHOULD CREATE A LOT OF MOMENTUM FOR INCREASED CONSUMER SPENDING AND ECONOMIC GROWTH FOR THE HOLIDAY SEASON HE SAID THE WAGE FIGURES ARE NOT ADJUSTED FOR INFLATION DESPITE THE JUMP IN INCOME HOWEVER CONSUMER SPENDING ROSE A MODERATE 02 IN AUGUST AFTER INCREASING 03 IN JULY AFTER ADJUSTING FOR INFLATION AS A RESULT SAVINGS INCREASED 41 IN AUGUST AFTER RISING 31 IN JULY THE HIGH SAVINGS RATE MAY EXPLAIN WHY MORE CONSUMERS DIDN'T TAKE ADVANTAGE OF SOME OF THE LOWEST MORTGAGE RATES IN 22 YEARS THE COMMERCE DEPARTMENT SEPARATELY REPORTED THAT NEWHOME SALES WERE DOWN 31 IN AUGUST TO AN ANNUAL RATE OF 616000 THE DEPARTMENT REPORTED EARLIER HOWEVER THAT HOUSING STARTS JUMPED IN AUGUST WHICH SUGGESTS THAT SALES COULD PICK UP BY THE END OF THE YEAR THE JULY RATE OF NEWHOME SALES WAS REVISED TO 636000 A 17 DECLINE FROM JUNE COMPARED WITH THE ESTIMATED 5 DROP LEONARD MILLER CHAIRMAN AND PRESIDENT OF LENNAR CORP A MIAMI HOME BUILDING AND REAL ESTATE COMPANY SAID THE AUGUST NUMBERS MAY ALSO BE REVISED UPWARD THE DEPARTMENT'S HOME SALES FIGURES ARE OFTEN SIGNIFICANTLY REVISED IT'S VERY DIFFICULT TO LOOK AT MONTHTOMONTH NUMBERS MR MILLER SAID EMPHASIZING THAT NEW HOME SALES ARE STILL UP 52 FROM LAST YEAR AND SALES SHOULD PICK UP AS AFFORDABILITY IS AT ALLTIME HIGH LEVELS SEPARATELY THE LABOR DEPARTMENT ANNOUNCED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 11000 LAST WEEK TO 329000 FROM A REVISED 340000 THE WEEK BEFORE CLAIMS DURING THE WEEK ENDED SEPT 18 HAD BEEN ESTIMATED AT 335000 THE FOURWEEK MOVING AVERAGE FOR JOBLESS CLAIMS WHICH IS CONSIDERED A BETTER MARKER FOR LABOR MARKET ACTIVITY WAS 328750 LAST WEEK UP 1000 FROM A REVISED 327750 THE PREVIOUS WEEK ALL FIGURES ARE ADJUSTED FOR SEASONAL VARIATIONS HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9310010069 931001 CREDIT MARKETS TREASURY BOND PRICES RETREAT AMID NEW SIGNS OF IMPROVEMENT IN THE PACE OF ECONOMIC GROWTH BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK REACTING TO SIGNS THE ECONOMY MIGHT BE A BIT STRONGER THAN HAD BEEN ASSUMED PRICES OF US TREASURY NOTES AND BONDS DROPPED MODERATELY FOR MOST OF THE SESSION INVESTORS WERE UNLOADING SECURITIES OF ALL MATURITIES THE MARKET HAD CHALKED UP SIZABLE LOSSES BY MIDAFTERNOON WITH THE PRICE OF THE 30YEAR BOND DOWN AS MUCH AS 5/8 POINT LATE IN THE DAY THERE WAS A QUICK BOUT OF BUYING BY DEALERS COVERING SHORT POSITIONS IN WHICH THEY HAD BORROWED AND SOLD SECURITIES IN HOPES OF BUYING THEM BACK LATER AT LOWER PRICES FOR A PROFIT THE SPURT OF BUYING LIFTED THE MARKET FROM ITS LOWEST LEVELS OF THE DAY BUT IT DID LITTLE TO BOOST SENTIMENT TRADERS BLAMED THE SOUR SENTIMENT ON SIGNS THAT ECONOMIC GROWTH MAY FINALLY BE PICKING UP TO A MORE SOLID PACE THIS ENTIRE YEAR THE ECONOMY HAS BEEN CHARACTERIZED AS GOING THROUGH FITS AND STARTS SAID RON CONNORS HEAD OF GOVERNMENT SECURITIES TRADING AT BEAR STEARNS & CO AND RIGHT NOW THE ECONOMY FEELS LIKE IT IS CLOSER TO A START THAN A FIT ECONOMIC NEWS YESTERDAY WHILE NOT ALL STRONG CONTAINED ENOUGH GLIMMERS OF HOPE FOR THE ECONOMY TO WORRY SOME BOND INVESTORS AMONG REPORTS SHOWING SLIGHTLY BETTER GROWTH WAS THE CHICAGO PURCHASING MANAGERS' INDEX WHICH LEAPT TO 545 IN SEPTEMBER FROM 502 IN AUGUST A READING ABOVE 50 SUGGESTS THAT THE ECONOMY IS GROWING WITHIN THE REPORT TRADERS FOCUSED ON A COMPONENT INDICATING A PICKUP IN MANUFACTURING EMPLOYMENT MEANWHILE THE GOVERNMENT REPORTED THAT PERSONAL CONSUMPTION ROSE 05 IN AUGUST WHILE PERSONAL INCOME ROSE 13 PEOPLE WHO HAVE ARGUED THAT THE ECONOMY IS GOING TO REMAIN WEAK HAVE BEEN ARGUING THAT WHILE CONSUMPTION HAS BEEN STRONG THERE HASN'T BEEN THE INCOME GROWTH TO SUPPORT IT SAID MICKEY LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK TODAY'S DATA WERE AN INDICATION THAT ECONOMIC STRENGTH CAN BE SUSTAINED HOWEVER BULLS IN THE MARKET DID SEIZE ON THE NEWS OF AN UNEXPECTED 31 DROP IN AUGUST NEWHOME SALES FOR A SHORT TIME AT MIDMORNING THEY ATTEMPTED TO PUSH PRICES HIGHER BUT THE BUYING INTEREST WAS QUICK TO FADE AS IT HAS OFTEN IN RECENT SESSIONS WE RALLIED A LITTLE BIT ON THE HOME SALES DATA BUT AGAIN WE DIDN'T SEE ANY FOLLOWTHROUGH BUYING SAID FRED LEINER MARKET STRATEGIST AT CONTINENTAL BANK WE JUST DIDN'T SEE ANYAT SLIGHTLY HIGHER PRICES HE ADDED MY SENSE IS THAT THE ECONOMY HAS DONE A LITTLE BIT BETTER IN THE LAST FOUR TO FIVE WEEKS AND THAT IS WHAT HAS KEPT US FROM GOING ANY HIGHER TRADERS AND ANALYSTS STRESSED THEY DON'T EXPECT THE TYPE OF ECONOMIC GROWTH THAT WOULD LEAD TO A SURGE IN INFLATIONARY PRESSURES AND SHARPLY HIGHER BOND YIELDS RATHER THEY ARGUED THAT WITH YIELDS NEAR HISTORIC LOW LEVELS THE MARKET NEEDS A STEADY STREAM OF WEAKERTHANEXPECTED NUMBERS IF IT IS TO CONTINUE ITS RALLY THE MARKET IS BASICALLY ALL DRESSED UP BUT IT'S GOT NO PLACE TO GO WITHOUT SIGNS OF ECONOMIC WEAKNESS SAID PAUL MCCULLEY CHIEF ECONOMIST AT UBS SECURITIES INC FOR THE MARKET TO BUILD UP A HEAD OF STEAM FROM THIS LEVEL IT'S NOT ENOUGH TO HAVE SIGNS OF BENIGN INFLATION IT NEEDS SIGNS OF ECONOMIC ANEMIA INVESTORS WORRY THAT COMING ECONOMIC REPORTS WILL ALSO SHOW SIGNS OF STRENGTH TODAY FOR EXAMPLE THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT IS EXPECTED TO REVEAL BETTER CONDITIONS IN THE MANUFACTURING SECTOR NATIONWIDE ECONOMISTS BELIEVE THE PURCHASING MANAGERS' INDEX WILL RISE TO 508 FOR SEPTEMBER FROM 493 IN AUGUST TRADERS ALSO VOICED CONCERN THAT THE SEPTEMBER EMPLOYMENT REPORT WHICH IS SLATED TO BE RELEASED NEXT FRIDAY MIGHT COME IN ON THE STRONG SIDE EXPECTATIONS FOR THE SEPTEMBER FIGURES CENTER ON AN INCREASE IN NONFARM PAYROLLS OF ABOUT 150000 TRADERS SAID LOOKING AHEAD TO THE FINAL QUARTER OF THE YEAR SOME IN THE MARKET EXPECT THE BETTER PACE OF GROWTH TO BE SUSTAINED MORE AND MORE PEOPLE ARE STARTING TO TALK ABOUT FOURTH QUARTER GDP OF 3 OR BETTER SAID MR CONNORS OF BEAR STEARNS LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M2 A MEASURE OF MONEY SUPPLY ROSE 11 BILLION IN THE WEEK ENDED SEPT 20 THAT PUTS M2 GROWTH RATE AT 16 FROM THE 1992 FOURTHQUARTER JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 THE NEWISSUE MARKET CONTINUES TO BE SLOW WITH ONLY 425 MILLION OF CORPORATE DEBT SOLD YESTERDAY MORGAN STANLEY GROUP INC NOBLE DRILLING CORP AND MERRILL LYNCH & CO ALL VENTURED INTO THE QUIET MARKET WITH OFFERINGS IN THE INVESTMENTGRADE MARKET TRADING WAS LIGHT WITH YIELD SPREADS REMAINING RELATIVELY UNCHANGED PRICES FOLLOWED TREASURYS DOWN ON THE DAY THE BONDS OF USX CORP AND ITS MARATHON OIL CO SUBSIDIARY TOOK IT ON THE CHIN AFTER THEIR RATINGS WERE LOWERED BY STANDARD & POOR'S CORP TO JUNK GRADE AS A RESULT INVESTORS WHO CANNOT HOLD JUNKRATED SECURITIES WERE FORCED TO SELL ABOUT 6 BILLION OF DEBT WAS AFFECTED BY THE DOWNGRADE USX'S 8 1/8 COUPON BONDS MATURING IN 2023 DROPPED NEARLY TWO POINTS OR NEARLY 20 FOR A BOND WITH 1000 FACE VALUE AS THE YIELD ROSE TO 885 FROM 865 THE TWO COMPANY'S SENIOR DEBT RATINGS WERE LOWERED TO DOUBLEBPLUS FROM TRIPLEBMINUS USX'S SUBORDINATED DEBT AND PREFERRED STOCK RATINGS WERE ALSO LOWERED TO DOUBLEBMINUS FROM DOUBLEBPLUS IN THE HIGHYIELD MARKET TRADING WAS LIGHT WITH PRICES RELATIVELY UNCHANGED STONE CONTAINER CORP'S BONDS ROSE AFTER RODGER STONE CHAIRMAN CEO AND PRESIDENT HELD A CONFERENCE CALL TO DISMISS RUMORS THAT THE COMPANY MIGHT FILE FOR BANKRUPTCYLAW PROTECTION AND THAT ITS BANK NEGOTIATIONS AND INITIAL PUBLIC OFFERING OF ITS CANADIAN ASSETS WERE PROCEEDING POORLY THE PRICE ON STONE'S 11 7/8 COUPON NOTES MATURING IN 1998 ROSE THREE POINTS TO 93 AS THE YIELD DROPPED TO 138 FROM 147 THE BONDS HAVE BEEN EXTREMELY VOLATILE OVER THE PAST FEW WEEKS TRADERS SAID MUNICIPAL BONDS FINISHED YESTERDAY'S SLOW SESSION UNCHANGED TO 3/8 POINT LOWER FAILING TO RECOVER FROM A DOWNWARD DRIFT EARLY IN THE SESSION TRADERS SAID THE MUNI MARKET IS STILL CLOSELY TIED TO TREASURYS WHICH WERE HURT THIS SESSION BY RETAIL SELLING DICKINSON COUNTY MICH ECONOMIC DEVELOPMENT CORP'S 585 POLLUTION CONTROL REVENUE REFUNDING BONDS DUE 2018 FINISHED 3/8 LOWER AT 100 YIELDING 583 WITH LITTLE MARKETMOVING NEWS DEVELOPMENTS CONCERNING ISSUES SUCH AS THE CRACKDOWN ON POLITICAL CONTRIBUTIONS BY MUNI UNDERWRITERS ARE BEING WATCHED CLOSELY SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT HAS INVITED SENIOR OFFICIALS OF TOP MUNIBOND UNDERWRITERS TO MEET WITH HIM TO DISCUSS EFFORTS TO CURB POLITICAL PAYOFFS BY BOND DEALERS TO STATE AND LOCAL OFFICIALS A DOZEN OR SO FINANCIERS ARE EXPECTED TO ATTEND THE OCT 18 SESSION PRICES OF MORTGAGE SECURITIES DROPPED JUST SLIGHTLY YESTERDAY BUT OUTPERFORMED TREASURYS AMONG 6 COUPONS FOR OCTOBER DELIVERY GINNIE MAES DROPPED 2/32 POINT TO 99 6/32 FREDDIE MAC GOLDS AND FANNIE MAES BOTH DROPPED 5/32 TO 99 17/32 AND 98 14/32 RESPECTIVELY WHILE THE SECONDARY MARKET WAS SOFTER DEALINGS IN THE PRIMARY MARKET FOR REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE BRISK DEALERS WERE RUSHING TO DO NEW REMICS AS THE THIRD QUARTER ENDED IN ORDER TO MAKE A BETTER SHOWING ON INDUSTRY VOLUME RANKINGS MORE THAN 23 BILLION OF NEW REMICS WERE OFFERED YESTERDAY JACQUELINE DOHERTY CONTRIBUTED TO THIS COLUMN 9310010068 931001 US SEES NO NEED FOR SPECIAL PROSECUTOR IN BROWN INVESTIGATION WASHINGTON CLINTON ADMINISTRATION OFFICIALS SAID THEY HAVE NO PLANS TO CALL FOR A SPECIAL PROSECUTOR TO INVESTIGATE BRIBERYRELATED ALLEGATIONS AGAINST COMMERCE SECRETARY RON BROWN MR BROWN HAS VIGOROUSLY DENIED CHARGES THAT HE SOUGHT 700000 PLUS OIL AND GAS ROYALTIES IN RETURN FOR EFFORTS TO EASE US TRADE RESTRICTIONS ON VIETNAM THE ALLEGATIONS HAVE BEEN MADE BY BINH LY A FORT LAUDERDALE FLA BUSINESSMAN WHO SAID HE WAS PART OF A GROUP THAT BEGAN APPROACHING MR BROWN BEFORE HE WAS APPOINTED TO PRESIDENT CLINTON'S CABINET MR BROWN'S LAWYER HAS SAID MR BROWN DID MEET WITH A MEMBER OF THAT GROUP ON THREE OCCASIONS INCLUDING ONCE AFTER HIS NOMINATION WAS CONFIRMED IN JANUARY MR LY SAID HE NEVER TALKED TO MR BROWN AND HAS NO DIRECT KNOWLEDGE THAT ANY DEAL WAS CONSUMMATED MARK GEARAN MR CLINTON'S COMMUNICATIONS DIRECTOR SAID THE PRESIDENT WOULDN'T CALL FOR AN INDEPENDENT PROSECUTOR BECAUSE HE IS SATISFIED WITH THE CURRENT INVESTIGATION BY THE JUSTICE DEPARTMENT WHICH HAS REFERRED THE MATTER TO A GRAND JURY ATTORNEY GENERAL JANET RENO SAID SHE IS WORKING TO ENSURE THAT HER DEPARTMENT'S INVESTIGATION IS CONDUCTED THE RIGHT WAY ACCORDING TO THE EVIDENCE AND THE LAW YESTERDAY MR LY MET WITH 14 REPUBLICAN MEMBERS OF CONGRESS WHO CALLED ON PRESIDENT CLINTON TO HALT ANY NORMALIZATION OF RELATIONS WITH VIETNAM UNTIL THE FEDERAL GRAND JURY CONCLUDES ITS WORK 9310010065 931001 POTOMAC WATCH ON HEALTH NOT EVERY REPUBLICAN IS BRAIN DEAD BY PAUL A GIGOT AMERICA'S HEALTH DEBATE HAS ONLY JUST BEGUN BUT HERE IN EUPHORIC WASHINGTON YOU'D THINK IT'S ALL BUT OVER BILL CLINTON HAS ALREADY BEEN CHRISTENED THE NEW FDR HILLARY IS ELEANOR THE GREAT WHILE REPUBLICANS GRACIOUSLY PLAY ALF LANDON WHICH IS WHY IT'S IMPORTANT THAT PHIL GRAMM HAS DECIDED NOT TO TAKE THE SAME TRIP TO ST ELSEWHERE IF REPUBLICANS CAN'T OFFER AN ALTERNATIVE TO SOCIALIZED MEDICINE WE HAVE NO LEGITIMATE REASON TO EXIST THE TEXAS SENATOR DECLARED THIS WEEK HE THUS REBUKED BOTH THE BELTWAY CONSENSUS AND HIS OWN PARTY'S METOO RESPONSE TO THE CLINTON PLAN THIS IS THE MOST IMPORTANT ISSUE SINCE I'VE BEEN IN CONGRESS ADDS THE TWOTERM SENATOR I PLAN TO MAKE THIS A CRUSADE LIBERALS THINK IT'S RUDE TO USE THE WORD SOCIALISM AT LEAST IN PUBLIC BUT MR GRAMM'S BROADSIDE HAS THE VIRTUE OF ENGAGING THE CLINTON PLAN WHERE IT IS MOST VULNERABLE ON ITS BID FOR GOVERNMENT CONTROL OF 14 OF THE US ECONOMY MAYBE NOW WE CAN START THE REAL DEBATE MR GRAMM IS WELL PLACED TO CARRY THAT DEBATE FOR REASONS BOTH SUBSTANTIVE AND POLITICAL ON SUBSTANCE HE IS AN ECONOMIST WHO HELPED PASS LEGISLATION THAT ALLOWED HMOS AS FOR POLITICS HE'S ALL BUT SAID HE'S RUNNING FOR PRESIDENT IN 1996 MR GRAMM WANTS TO COURT RANKANDFILE REPUBLICANS APPALLED BY THE MEEK ACCOMMODATION OF HIS LIKELY PRESIDENTIAL RIVAL BOB DOLE AND OTHER GOP LEADERS THE TEXAN IS NOTORIOUS FOR KEEPING HIS OWN COUNSEL THE GRAMM INNER CIRCLE IS SAID TO BE HIMSELF AND A MIRROR YET BOTH JEFF BELL AND BILL KRISTOL TWO OF THE SMARTEST GOP THINKERS HAVE TOLD GRAMM ADVISER CHARLIE BLACK THAT THIS IS SHREWD POLITICS IF HE LEADS THE ATTACK ON THE PLAN AT ITS CORE AND DOES IT ON PRINCIPLE WITH AN ALTERNATIVE HE'LL WIN BACK MANY CONSERVATIVES WHO HATED HIS SUPPORT FOR THE 1990 BUDGET DEAL SAYS MR KRISTOL HE'D ALSO ATONE FOR ADVISING DICK THORNBURGH TO AVOID HEALTH CARE IN HIS DISASTROUS 1991 SENATE RACE THIS TIME MR GRAMM IS ONE OF THE FEW REPUBLICANS WHO UNDERSTANDS THE STAKES I BELIEVE WE CAN AND WILL REPEAL THE PRESIDENT'S TAX INCREASE I BELIEVE WE CAN AND WILL REPAIR FOREIGNPOLICY MISTAKES HE SAYS BUT ABOUT THE CLINTON HEALTH MONSTROSITY HE SAYS I CAN'T FIX THIS MR GRAMM SAYS THAT ONCE A MIDDLECLASS HEALTH ENTITLEMENT IS IN PLACE IT'S ETERNAL AND ONCE GOVERNMENT OFFERS A STANDARD BENEFIT PACKAGE AS THE PLANS OF BOTH MRS CLINTON AND REPUBLICAN JOHN CHAFEE DO THE POLITICIANS WILL ADD AN ENDLESS PROLIFERATION OF BENEFITS EVERY INTEREST GROUP WITH A LETTERHEAD WILL PETITION CONGRESS AND GET ITS SERVICE INCLUDED HE SAYS COSTS WILL EXPLODE BUILDING PRESSURE FOR TAX HIKES OR RATIONING THUS CREATING A SYSTEM NO AMERICAN WOULD WANT EVEN IF IT WERE FREE ALONG WITH SENS JOHN MCCAIN ARIZ AND HANK BROWN COLO MR GRAMM WILL SOON INTRODUCE HIS ALTERNATIVE TAXFREE MEDICAL SAVINGS ACCOUNTS THE PLAN'S MAIN VIRTUE IS THAT IT WOULD BRING INDIVIDUAL CHOICE BACK INTO THE HEALTH CARE EQUATION MR GRAMM SAYS THE CURRENT EMPLOYERBASED SYSTEM GREW LIKE TOPSY IN AND AFTER WORLD WAR II WHEN WAGE CONTROLS MADE COMPANIES COMPETE WITH BENEFITS NOT WAGES BUT BECAUSE SOMEONE ELSE PAYS MOST OF THE BILL INDIVIDUALS HAVE NO INCENTIVE TO SPEND LESS AS EVEN HILLARY CLINTON NOTED THIS WEEK YET MR GRAMM SAYS THE CLINTON PLAN WOULD ANSWER ONE GOVERNMENT FAILURE WITH ANOTHER FORCING MOST AMERICANS INTO ONE STANDARD INSURANCE OPTION UNDER HEAVYHANDED CONTROLS MEDISAVE ACCOUNTS ON THE OTHER HAND WOULD STILL PROVIDE HEALTH SECURITY BUT THEY'D DO SO WHILE INTRODUCING INCENTIVES FOR INDIVIDUALS TO CHOOSE INSURANCE THAT IS BEST FOR THEM AND TO BE COSTCONSCIOUS BESIDES MR GRAMM KNOWS THIS CAN'T PASS THIS CONGRESS BUT MERELY BY PROPOSING IT HE'S INDUCED MR CHAFEE TO IMPROVE HIS PLAN BY INCLUDING A MEDISAVE OPTION AND MAKING HEALTH ALLIANCES VOLUNTARY BY OUTFLANKING MR CHAFEE ON THE RIGHT MR GRAMM HAS ALSO BROADENED THE PUBLIC DEBATE IN WAYS THAT MIGHT FORCE A BETTER COMPROMISE LIBERALS WANT THE CHAFEE PLAN TO BE FURTHEST TO THE RIGHT SO MODERATES WILL BE FORCED TO MOVE FROM IT TO ACCEPT AT LEAST HALF OF THE CLINTON PLAN MR GRAMM GIVES OPPONENTS ANOTHER OPTION AND BY ATTACKING ON PRINCIPLE HE RAISES THE DEBATE ABOVE POLICY WONKISM TO THINGS AMERICANS CAN UNDERSTAND MR GRAMM'S POLITICAL WEAKNESS IS THAT HE LACKS THE TELEGENIC WARMTH OF A BILL CLINTON BUT HIS STRENGTH IS THAT HE'S A RARE POLICY INTELLECTUAL WITH A POPULIST FLAIR ON HEALTH CARE HE SAYS THE ISSUE IS ARE WE FREE TO CHOOSE OR ARE WE GOING TO LET THE GOVERNMENT CHOOSE HE PLANS TO HIT THE ROAD EXPLAINING THAT THE CLINTON PLAN WOULD MAKE IT ILLEGAL FOR FREE CITIZENS IN THIS COUNTRY TO GO TO BLUE CROSS AND BUY THEIR OWN INSURANCE POLICY IF THEY'RE WILLING TO PAY FOR IT THE TEXAN ADDS THAT I EXPECT EVERY SPECIAL INTEREST WILL SELL OUT TO THE CLINTONS THE AMA WILL SELL OUT FOR MALPRACTICE REFORM THE HOSPITALS IF THE FEDS PICK UP SOME OF THEIR UNINSURED COSTS SO WHY IS HE OPTIMISTIC BECAUSE THE GOOD NEWS IS THAT MIDDLE CLASS AMERICANS ARE GOING TO DECIDE THIS HE SAYS MORE THAN MOST REPUBLICANS THESE DAYS MR GRAMM SHOWS FAITH IN HIS PRINCIPLES AND IN THE JUDGMENT OF AVERAGE AMERICANS 9310010064 931001 A HEMISPHERE IN THE BALANCE BY DAVID ROCKEFELLER I CAN'T HELP SEEING THE CURRENT DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT IN THE CONTEXT OF MY OWN HALF CENTURY OF WORK WITH THE PEOPLE OF CANADA AND LATIN AMERICA AN INTEREST THAT I SHARED WITH MY LATE BROTHER NELSON IT SEEMS IRONIC THAT MANY OF THE THINGS WE HAD HOPED TO WITNESS IN LATIN AMERICA AND WORKED HARD TO ACCOMPLISH ARE NEARER NOW TO REALIZATION THAN THEY HAVE EVER BEEN AND YET THEY ARE THREATENED BY A REJECTION OF NAFTA BY THE US SUCH A REJECTION COULD REVERSE A GREAT DEAL OF WHAT HAS BEEN ACCOMPLISHED WHEN I WAS A YOUNG BANKER JUST OUT OF MILITARY SERVICE AFTER WORLD WAR II MY WORK IN CHASE MANHATTAN BANK'S INTERNATIONAL DEPARTMENT TOOK ME THROUGHOUT LATIN AMERICA AND THE CARIBBEAN I FOUND A HEMISPHERE EMBARKING ON A COURSE OF WHAT MIGHT BE TERMED DIRECTED NATIONAL DEVELOPMENT IT WAS A FAULTY ECONOMIC MODEL BASED ON IMPORT SUBSTITUTION AND PROTECTIONISM WITH A STRONG DOSE OF NATIONALISM OFTEN COLORED AS MARXISM THIS SITUATION PERSISTED INTO THE 1970S AT THE SAME TIME MUCH OF THE TRANSFER OF CAPITAL FROM NORTH TO SOUTH TOOK PLACE AS BANK CREDIT TO THE PUBLIC SECTORS THE PROCESS WAS ACCELERATED BY THE NEED TO RECYCLE PETRODOLLARS FROM THE HUGE SURPLUSES THAT WERE ACCUMULATING FOR THE OIL PRODUCERS OF THE MIDDLE EAST THIS MODEL SHOWED SOME TEMPORARY SUCCESSES AS COUNTRIES LIKE MEXICO AND BRAZIL REGISTERED SIGNIFICANT GROWTH RATES BUT THE COST WAS HIGH THE NATIONS ULTIMATELY FOUND THEMSELVES BURDENED BY INFLATED PUBLIC SECTORS NONCOMPETITIVE PRIVATE SECTORS AND MOUNTING DIFFICULTIES IN SERVICING THEIR INTERNATIONAL DEBTS NEXT OF COURSE WAS THE DEBT CRISIS BEGINNING IN AUGUST 1982 WHEN MEXICO FORMALLY ANNOUNCED THAT IT COULD NO LONGER MAKE ITS INTERNATIONAL PAYMENTS OF PRINCIPAL OR EVEN INTEREST WHAT IS REMARKABLE NOW IS THE PROFOUND CHANGE THAT HAS OCCURRED IN THE DECADE SINCE THE DEBT PROBLEM BEGAN QUITE SIMPLY A WHOLE NEW VISION OF ECONOMIC ORGANIZATION HAS COME TO THE FORE IT WAS HELPED IN AN IMPORTANT MEASURE BY THE FREE TRADE AGREEMENT BETWEEN CANADA AND THE US BUT A REAL AWARENESS OF THE IMMENSE POTENTIAL LOCKED UP WITHIN OUR OWN HEMISPHERE WAS BROUGHT TO LIFE BY LEADERS TO THE SOUTH OF US THIS REVOLUTIONARY PROCESS STARTED WITH THE PROFOUND ECONOMIC TRANSFORMATION UNDERTAKEN BY CHILE IT ACCELERATED RAPIDLY WITH MEXICO'S DECISION TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO UNILATERALLY REDUCE TARIFFS AND FINALLY TO WORK TOWARD A RADICALLY NEW TRADING SYSTEM WITH THE SIGNING OF NAFTA AND MORE RECENTLY THE LABOR AND ENVIRONMENTAL SIDE AGREEMENTS THIS NOT ONLY BROUGHT MEXICO INTO THE GAME BUT UNDER THE TERMS OF THE ENTERPRISE FOR THE AMERICAS INITIATIVE SET FORTH BY PRESIDENT BUSH IT ALSO HELD OUT THE PROMISE OF EXTENDING THE NEW TRADING SYSTEM TO THE ENTIRE HEMISPHERE IT WAS A REVOLUTIONARY IDEA THAT WON ENTHUSIASTIC ACCEPTANCE THROUGHOUT THE HEMISPHERE SUCH ACCEPTANCE WAS BASED NOT ONLY ON A BELIEF IN FREE TRADE BUT ALSO ON A BELIEF IN POLITICAL DEMOCRACY AND THE FREE MARKET PRESIDENT MIGUEL DE LA MADRID OF MEXICO HAD PREPARED THE WAY A TRAINED ECONOMIST HE GRASPED THE POTENTIAL FOR HIS OWN NATION'S ECONOMIC AND SOCIAL FUTURE BY ADOPTING A FREEMARKET MODEL AND LINKING MEXICO'S ECONOMIC DESTINY TO ITS TWO MORE DEVELOPED NEIGHBORS TO THE NORTH CANADA AND THE US HIS CRITICAL CHOICE FOR THE KEY POST OF PLANNING MINISTER WAS A YOUNG HARVARDEDUCATED ECONOMIST CARLOS SALINAS DE GORTARI WHEN MR SALINAS SUCCEEDED TO THE PRESIDENCY IN 1988 THE NEW MODEL TOOK ON ADDED PROMISE AND VITALITY HAVING OBSERVED LATIN AMERICA AND THE CARIBBEAN FOR SUCH A LONG PERIOD AND HAVING DEALT WITH ITS OFFICIALS FOR SO MANY YEARS I FIND IT EXTRAORDINARY THAT THIS WHOLE NEW WAY OF THINKING WAS SHARED BY GOVERNMENT LEADERS IN VIRTUALLY ALL THE KEY COUNTRIES OF THE HEMISPHERE UNDER WHAT WERE SPECIAL CIRCUMSTANCES CHILE HAD ALREADY MOVED IN THE DIRECTION OF A MARKET ECONOMY UNDER THE MILITARY GOVERNMENT THAT REPLACED PRESIDENT ALLENDE'S DISASTROUS MARXIST EXPERIMENT IN THE EARLY 1970S WHAT WAS CRUCIAL HOWEVER WAS THAT THE DEMOCRATICALLY ELECTED GOVERNMENT THAT CAME TO POWER IN 1989 UNDER PRESIDENT PATRICIO AYLWIN MAINTAINED AND EXPANDED THE MARKETECONOMY MODEL ACROSS THE ANDES IN ARGENTINA A PERONIST GOVERNMENT UNDER PRESIDENT CARLOS MENEM ALSO MOVED DECISIVELY IN THE DIRECTION OF A MARKET ECONOMY AS DID THENPRESIDENT CARLOS ANDRES PEREZ IN VENEZUELA IN THESE COUNTRIES TRADITIONAL LABOR PARTIES CARRIED OUT THE ECONOMIC REVOLUTION THEY DID SO OF COURSE PRECISELY BECAUSE THEY FELT THAT THE CHANGES BEING ENCOURAGED WOULD RESULT IN ECONOMIC GROWTH AND JOB CREATION WHAT HAS AMAZED ME EVEN MORE IS THAT THE PRIVATE SECTORS OF LATIN AMERICA LONG COMFORTABLE BEHIND PROTECTIVE TARIFF BARRIERS HAVE ALSO SWUNG AROUND TO SUPPORT AN OPEN HEMISPHERE TRADING SYSTEM THE AMERICAS SOCIETY AND THE COUNCIL OF THE AMERICAS WHICH I HELPED TO ESTABLISH AND WHICH I CHAIRED UNTIL THE BEGINNING OF THE YEAR WERE COSPONSORS LAST SPRING IN WASHINGTON OF A FORUM OF THE AMERICAS JOINING US WERE PRIVATESECTOR ORGANIZATIONS MADE UP OF BUSINESS LEADERS FROM CANADA LATIN AMERICA AND THE CARIBBEAN AT THE CONCLUSION OF THE FORUM THE PARTICIPANTS WERE UNANIMOUS IN SUPPORTING THE PROPOSITION THAT WE SHOULD TOGETHER STRIVE TO ACHIEVE A FULL WESTERN HEMISPHERE FREE TRADE AREA BY THE YEAR 2000 THAT WOULD HAVE SEEMED A FANTASY ONLY A FEW YEARS AGO IT IS CLEAR NOW THAT A REVOLUTIONARY NEW MOOD OF PRAGMATISM AND ENTERPRISE IS ABROAD IN THESE LANDS THE PROMISE IS EXCITING INDEED ESPECIALLY AS EUROPE '92 HAS PROVED TO BE MUCH HARDER TO ACHIEVE IN REALITY THAN IN CONCEPT HERE IN THE AMERICAS WE CAN CONTEMPLATE THE EXTRAORDINARY VISION OF A FREE TRADING AREA STRETCHING FROM CANADA'S HUDSON BAY TO TIERRA DEL FUEGO AT THE TIP OF SOUTH AMERICA THIS HALF SPHERE HAS A PREDOMINANTLY YOUNG POPULATION OF MORE THAN 700 MILLION PEOPLE IN A COMMUNITY OF NATIONS THAT ALREADY GENERATES A COMBINED GROSS NATIONAL PRODUCT OF MORE THAN 7 TRILLION BEYOND LIES AN IMMENSE POTENTIAL FOR GROWTH I NEVER EXPECTED TO SEE SUCH A TRANSFORMATION IN MY LIFETIME IT WOULD BE A TERRIBLE PITY TO SEE SUCH A HISTORIC OPPORTUNITY PASS US BY NOW BECAUSE OF A FAILURE ON OUR PART TO GRASP THE MOMENT GRASPING THE MOMENT MEANS FIRST OF ALL WINNING THE SUPPORT OF THE AMERICAN PEOPLE THE ADMINISTRATION AND CONGRESS FOR NAFTA WHICH REQUIRES LEGISLATIVE ACTION BY THE END OF THIS YEAR BEYOND NAFTA CHILE HAS SIGNALED ITS DESIRE TO BE NEXT IN LINE TO JOIN IN A WIDER TRADING AREA VENEZUELA AND ARGENTINA HAVE EXPRESSED SIMILAR DESIRES FOR ITS PART THE US HAS ALREADY CONCLUDED SOCALLED FRAMEWORK AGREEMENTS IN TRADE WITH VIRTUALLY ALL THE OTHER COUNTRIES OF THE HEMISPHERE THESE HAVE PREPARED THE WAY FOR THEIR INCORPORATION INTO A HEMISPHEREWIDE FREETRADE SYSTEM WHAT IT COMES DOWN TO IS THIS THE CHANGES IN ATTITUDES AND POLICIES TO MAKE THIS DREAM COME TRUE HAVE HAPPENED EVERYTHING IS IN PLACE AFTER 500 YEARS TO BUILD A TRUE NEW WORLD IN THE WESTERN HEMISPHERE WE ARE FURTHER ALONG THE ROAD TOWARD A DEMOCRATIC AND ECONOMICALLY PROSPEROUS HEMISPHERE THAN WE HAVE EVER BEEN I TRULY DON'T THINK THAT CRIMINAL WOULD BE TOO STRONG A WORD TO DESCRIBE AN ACTION ON OUR PART SUCH AS REJECTING NAFTA THAT WOULD SO SERIOUSLY JEOPARDIZE ALL THE GOOD THAT HAS BEEN DONE AND REMAINS TO BE DONE TO IMPROVE THE LIVES AND FORTUNES OF SO MANY PEOPLE MR ROCKEFELLER IS HONORARY CHAIRMAN OF THE AMERICAS SOCIETY AND THE COUNCIL OF THE AMERICAS 9310010063 931001 BUSINESS BRIEF PETROCANADA NEW OIL AND GAS SUBSIDIARY IS FORMED FOR FUTURE SALE PETROCANADA SAID IT FORMED A NEW OIL AND GAS SUBSIDIARY WHICH IT PLANS TO SELL FROM WESTERN CANADIAN OIL AND GAS PROPERTIES IT DOESN'T WANT AS PART OF ITS CORE OPERATIONS THE CALGARY ALBERTA PETROLEUM COMPANY SAID THE NEW COMPANY TROCANA RESOURCES WILL OPERATE AS AN AUTONOMOUS JUNIOR OIL AND GAS PRODUCER IT SAID TROCANA'S PROPERTIES HAVE RECENTLY CONTRIBUTED 6500 BARRELS A DAY OF OIL PRODUCTION AND 35 MILLION CUBIC FEET A DAY OF GAS PRODUCTION TO PETROCANADA'S 80400 BARRELS A DAY OIL PRODUCTION AND 533 MILLION CUBIC FEET A DAY GAS PRODUCTION A PETROCANADA SPOKESMAN SAID HE DIDN'T KNOW WHEN TROCANA WILL BE OFFERED FOR SALE AND DECLINED TO PROVIDE ESTIMATES OF ITS EARNINGS CASH FLOW OR REVENUE 9310010062 931001 NERVOUS MARKET RISKS IN JUNK BONDS RISE AS MUTUAL FUNDS PLAY A GROWING ROLE SOME MONEY MANAGERS FEAR A SURGE IN REDEMPTIONS AND ARE SELLING ALREADY THE LENDERS OF LAST RESORT BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL BOY YOU BETTER JUMP CAUSE THERE ARE TWO LOCOMOTIVES THAT ARE GOING TO BUMP CROONS WILLIAM VERONDA ON HIS TELEPHONE ANSWERING MACHINE WHY IS THIS DENVER MUTUALFUND MANAGER SINGING THE BALLAD OF CASEY JONES TO SHAREHOLDERS OF HIS INVESCO HIGH YIELD BOND FUND BECAUSE HE EXPLAINS THE FAMOUS TURNOFTHECENTURY TRAIN WRECK SOMEHOW REMINDS ME OF THE JUNK BOND MARKET RIGHT THIS MINUTE MR VERONDA MAY BE THE ONLY MONEY MANAGER SINGING ABOUT THE JUNKBOND MARKET BUT HE ISN'T THE ONLY ONE WORRYING ABOUT IT MUTUAL FUNDS HAVE GROWN INTO THE GORILLAS OF THIS 210 BILLION MARKET WHERE HIGHRISK CORPORATE DEBT YIELDS 10 OR MORE EVEN AS THRIFTS AND LIFE INSURERS RETREATED UNDER REGULATORY PRESSURE FROM THE JUNK MARKET THEY DOMINATED IN THE 1980S SMALL INVESTORS RUSHED IN LURED BY 15PLUS ANNUAL RETURNS IN THE PAST TWO YEARS AS THEIR JUNKFUND SHARES NOT ONLY PAID HIGH INTEREST BUT ALSO ROSE IN PRICE IN EFFECT THE MUTUAL FUNDS' VAST BUYING POWER HAS TURNED THEM INTO THE LENDERS OF LAST RESORT ESPECIALLY TO MANY RELATIVELY SMALL SHAKY COMPANIES MICHAEL MILKEN THE FORMER JUNKBOND KING USED TO SAY THIS WAS A MARKET OF HIGHGROWTH COMPANIES WHICH IT NEVER WAS AT THE TIME SAYS PAUL MATLACK WHO RUNS DELAWARE GROUP'S 1 BILLION DELCHESTER JUNKBOND FUND IT REALLY IS THAT NOW AS LONG AS THE YIELD IS HIGH MUTUAL FUNDS SEEM WILLING TO BUY JUST ABOUT ANY THING ON A BET THAT A REVIVING ECONOMY WOULD RESCUE MANY WEAK COMPANIES BUSINESSES RANGING FROM A DONALD TRUMP CASINO TO A DALLAS TILE MANUFACTURER HAVE SOLD DEBT THAT DEFERS INTEREST OR PAYS IT WITH ADDITIONAL BONDS BECAUSE THE COMPANIES CAN'T AFFORD CASH INTEREST NOW OF COURSE NOT EVERY JUNKBOND DEAL IS ULTRARISKY REFINANCING WITH LOWERINTERESTRATE DEBT HAS ALREADY TURNED MANY SHAKY COMPANIES INTO BETTER CREDITS BUT MR VERONDA AND MANY OTHERS FEAR THAT IF JUNKBOND PRICES DROP SIGNIFICANTLY MUTUALFUND INVESTORS WILL RUSH FOR THE EXITS AND PRICES ARE ALREADY HEADING DOWN AS MONEY FLOWS OUT OF JUNK MUTUAL FUNDS THE FUNDS ARE STARTING TO LOOK LESS LIKE PILLARS OF SUPPORT IN THE MARKET AND MORE LIKE CHINKS IN THE FOUNDATION LAST OCTOBER MORE THAN 2 BILLION ABRUPTLY FLOWED OUT OF JUNK MUTUAL FUNDS AND THEN MOST OF IT RETURNED JUST A MONTH LATER IN THE PAST THREE WEEKS ACCORDING TO AMG DATA INVESTORS HAVE YANKED NEARLY 750 MILLION OUT OF JUNK FUNDS REVERSING A PATTERN OF 1 BILLIONAMONTH INFLOWS THIS SUMMER WE'RE WORRIED THE FUNDS WILL PUSH THE MARKET TO THE EDGE SAYS KINGMAN PENNIMAN HIGHYIELD RESEARCH CHIEF AT DUFF & PHELPS A BONDRESEARCH FIRM THE RESULT COULD BE BIG LOSSES FOR SMALL INVESTORS WHO HAVE PILED INTO JUNKBOND FUNDS IN HOPES OF BEATING THE PUNY RETURNS ELSEWHERE SO FAR THE SELLING HAS BEEN LARGELY CONFINED TO PROFESSIONALS MOSTLY MARKET TIMERS THERE'S NO QUESTION I HAVE TO GET OUT SAYS ROBERT E JONES WHO MANAGES 20 MILLION OF INDIVIDUALS' INVESTMENTS IN DENVER LAST MONTH HE TOOK MUCH OF HIS CLIENTS' 2 MILLION OF JUNKFUND HOLDINGS OUT OF INVESCO AND FEDERATED INVESTORS' JUNKBOND FUNDS AND HE IS WITHIN A FEW CENTS A SHARE OF LEAVING THE VANGUARD FIXEDINCOME HIGHYIELD FUND TOO THE LITTLE GUY MAY NOT BE FAR BEHIND SELLING CAN EASILY SNOWBALL BECAUSE MUTUALFUND INVESTORS CAN BAIL OUT WITH A PHONE CALL I DON'T LIKE MOVING IN AND OUT BUT IF I SEE THE MARKET DROPPING DROPPING I'D HAVE TO SELL SAYS MICHAEL BEATTY A RETIRED MIDDLE MANAGER IN BALTIMORE WITH ABOUT 10000 IN A JUNKBOND FUND MANAGERS SUCH AS MR VERONDA ARE RACING TO STAY AHEAD OF GROWING REDEMPTIONS AS SOON AS JUNKBOND PRICES TOPPED OUT AT THE END OF JULY MR VERONDA BEGAN FIELDING CALLS FROM ANXIOUS INVESTORS ONE OF MY INVESTORS CALLED VERY CONCERNED BECAUSE THE FUND WAS DOWN 0271 TWO CENTS ON OUR 7PLUS NET ASSET VALUE HE SAYS WITH INCREDULITY TO MEET EVERMOUNTING DEMANDS FOR CASH HE SOLD 50 MILLION WORTH OF BONDS BY MIDSEPTEMBER HE HAD ALREADY PAID OUT 33 MILLION OR MORE THAN 10 OF HIS FUND'S 320 MILLION IN ASSETS AND IT'S NOT OVER YET HE SAYS BRACING FOR BAILOUTS FUND MANAGERS HAVE BEEN DUMPING BIGNAME DEBT BECAUSE THEY CAN'T GET REASONABLE PRICES FOR SMALL CLOSELY HELD ISSUES EVERYONE RUSHES TO SELL THE WINNERS BECAUSE THOSE ARE THE ONLY BONDS THAT GET DECENT BIDS MR PENNIMAN SAYS AS A RESULT A JUNK BOND OF PLUMBINGPRODUCTS MAKER AMERICAN STANDARD INC HAS PLUNGED 6 IN SEVEN WEEKS WHACKING 55 OFF THE PRICE OF A 1000 BOND PAPERMAKER FORT HOWARD CORP'S 300 MILLION OF SUBORDINATED BONDS SANK TO 99 CENTS ON THE DOLLAR FROM 104 SUCH GUTWRENCHING SWINGS COULD TURN INTO A RECURRING NIGHTMARE IN THE JUNKBOND MARKET AS THE NUMBER OF BUYERS SHRINKS ISSUERS USED TO HOLD LUNCHEONS FOR 100 INSTITUTIONAL INVESTORS AT BOSTON'S HOTEL MERIDIEN NOW A TURNOUT OF 40 SEEMS BIG AND NO MATTER WHAT THE LUNCH CROWD THINKS JUNK BONDS MUST BE SOLD WHEN MUTUALFUND INVESTORS START TO FLEE AND THE FUNDS HAVE TO RAISE CASH BEARING DOWN ON THESE QUEASY INVESTORS AND INCREASING THE RISKS IS A TRAINLOAD OF PLANNED NEW JUNK ISSUES AS MUCH AS 13 BILLION ALMOST THE TOTAL AMOUNT RAISED IN 1985 INCREASINGLY THE OFFERINGS RESEMBLE THE WILDER DEALS OF THE 1980S FOR EXAMPLE THE PRINCIPALS IN THE LEVERAGED BUYOUT OF PURINA MILLS INC ARE TAKING ON 400 MILLION OF DEBT INCLUDING 200 MILLION OF JUNK ON A 36 MILLION SLIVER OF EQUITY IN THE SAGGING FOODPROCESSING BUSINESS MUTUAL FUNDS MUST RELY ON WALL STREET FIRMS NOW THAT THE INSURERS AND THRIFTS HAVE LEFT THE FIELD TO MAKE MARKETS WHERE BONDS CAN BE SOLD BUT WHEN BOND PRICES START FALLING SECURITIES FIRMS MAY BE WILLING TO BUY ONLY THE ISSUES THEY UNDERWROTE THERE IS LESS DEPTH TO THE MARKET THAN WE WOULD LIKE COMPLAINS LARS BERKMAN OF PRUDENTIAL HIGHYIELD FUND EVEN LARGE UNDERWRITERS ARE OFTEN RELUCTANT TO BID FOR MORE THAN 10 MILLION OF AN ISSUE NO HELP TO FUNDS HOLDING FAR BIGGER STAKES MUTUAL FUNDS NOW OWN AS MUCH AS 40 OF ALL JUNK BONDS OUTSTANDING SINCE SCOOPING UP MOST OF THE 90 BILLION OR SO IN PUBLIC AND PRIVATELY PLACED LOWGRADE DEBT OFFERED SINCE THE BEGINNING OF 1992 MARTIN S FRIDSON WHO HEADS HIGHYIELD RESEARCH AT MERRILL LYNCH & CO ESTIMATES THAT ON TOP OF THE 44 BILLION THAT INDIVIDUALS HAVE SOCKED AWAY IN JUNKBOND FUNDS A FURTHER 30 BILLION OF JUNK IS SITTING IN OTHER TYPES OF MUTUAL FUNDS IN 1989 BY CONTRAST MUTUAL FUNDS' JUNKBOND HOLDINGS TOTALED A MERE 27 BILLION IN A WAY THAT CONCENTRATION BENEFITS MUTUAL FUNDS AND THEIR INVESTORS ALLOWING THE CASHHEAVY FUNDS TO SHAPE THE TERMS OF BOND ISSUES IN AUGUST FOR EXAMPLE FIDELITY INVESTMENTS ENABLED TRANSTEXAS GAS CORP TO RAISE 500 MILLION TO REPAY BANK CREDITORS STILL UNPAID SINCE THE HOUSTON COMPANY'S REORGANIZATION IN BANKRUPTCY PROCEEDINGS FIDELITY AGREED TO SOAK UP MORE THAN 100 MILLION OF THE ISSUE IN ITS MUTUAL FUNDS IN EXCHANGE FOR A SLIGHTLY HIGHER INTEREST RATE AND TIGHTER COVENANTS WE WANT TO EXTRACT BLOOD SAYS RICHARD S SWINGLE WHO RUNS T ROWE PRICE ASSOCIATES' 16 BILLION HIGHYIELD FUND THE COMPANIES SAY THEY CAN GET THE DEAL DONE AT A BETTER PRICE BUT THEY ALWAYS COME BACK TO US BECAUSE WE HAVE THE CASH ADDS PRUDENTIAL'S MR BERKMAN IF I'M GOING TO BE THE BELL COW I WILL NEGOTIATE THE RATE AND ALL OTHER ASPECTS OF THE DEAL VERY AGGRESSIVELY IN AUGUST HE AGREED TO BUY SENIOR SECURED BONDS OF CHICAGOBASED SWEETHEART CUP CO AFTER PUSHING UP THE INTEREST RATE ON THE ISSUE BY THREEEIGHTHS PERCENTAGE POINT MUTUALFUND INVESTORS ARE LENDING TO COMPANIES THAT BANKS SHUN LARGE FUNDS SUCH AS PUTNAM HIGHYIELD TRUST 32 BILLION IN ASSETS PRUDENTIAL HIGHYIELD 36 BILLION AND KEMPER 3 BILLION IN TWO FUNDS FREQUENTLY BUY 50 MILLION CHUNKS FAR ABOVE THE LENDING LIMIT FOR ALL BUT THE LARGEST BANKS THAT'S PARTLY BECAUSE COMPANIES SUCH AS COMMUNITY HEALTH SYSTEMS INC AND STONE CONTAINER CORP VIEW THE JUNKBOND MARKET AS A HANDY OUT FROM RESTRICTIVE BANK COVENANTS AND SEVERE AMORTIZATION SCHEDULES NEARLY ONETHIRD OF THE JUNK ISSUES IN THE 1993 FIRST HALF REPLACED BANK DEBT ACCORDING TO DATA COMPLIED BY SECURITIES DATA CO AND MERRILL LYNCH HIGH YIELD RESEARCH SUCH LARGE BLOCKS OF BONDS HOWEVER COULD PROVE ESPECIALLY HARD FOR FUNDS TO SELL IN A DOWN MARKET THE JUNKBOND MARKET ALSO WELCOMES SHAKIER CREDITS FOR EXAMPLE BALDWIN CO A CALIFORNIA HOME BUILDER IN DEFAULT OR PAST DUE ON MOST OF ITS 152 MILLION IN DEBT RAISED 155 MILLION IN A PRIVATE PLACEMENT OF 10YEAR 10 3/8 NOTES THE NEW DEBT LEAVES BALDWIN BURDENED WITH GREATER INTEREST PAYMENTS JUST AS ITS BUSINESS IS SHRINKING DONALDSON LUFKIN & JENRETTE SECURITIES CORP RAISED 440 MILLION FOR PANAMSAT LP A PRIVATELY OWNED INTERNATIONAL SATELLITECOMMUNICATIONS SYSTEM EVEN THOUGH THE GREENWICH CONN COMPANY HAS ONLY 25 MILLION IN CASH AVAILABLE TO PAY INTEREST ORIGINALLY PANAMSAT'S OWNER RENE ANSELMO HAD INTENDED TO USE JUNK BONDS ONLY TO SUPPLEMENT BANK FINANCING TO LAUNCH HIS SATELLITE SYSTEM BUT HE FOUND HE COULD EASILY RAISE EVEN MORE MONEY FROM MUTUAL FUNDS ALONE THE FUNDS WERE WILLING TO ACCEPT THE ZEROCOUPON DEBT WHICH DOESN'T PAY INTEREST BUT INSTEAD IS SOLD AT A DEEP DISCOUNT FROM FACE AMOUNT AND IS TO BE REDEEMED AT FULL VALUE WHEN DUE THE ISSUE WAS SO WELL RECEIVED THAT DLJ PLANS MORE DEALS LIKE IT INCREASINGLY TOO CORPORATIONS ARE RAISING NEW MONEY IN THE JUNK MARKET INSTEAD OF JUST REFINANCING TO FUND CAPITAL EXPENDITURES MAKE ACQUISITIONS OR PAY DIVIDENDS CARL ICAHN HOPES TO RAISE 800 MILLION IN JUNK DEBT AS PART OF A RECAPITALIZATION OF HIS ACF INDUSTRIES INC THAT WILL ALLOW HIM TO EXTRACT 1 BILLION FROM THE RAILCAR MANUFACTURER BUT THE MOST WORRISOME TREND IN THE HIGHYIELD MARKET SAYS MERRILL'S MR FRIDSON IS THE SURGE OF SMALL ISSUES TOTALING 100 MILLION OR LESS SO FAR THIS YEAR COMPANIES HAVE RAISED A RECORD 66 BILLION IN SMALLSCALE DEALS FAR EXCEEDING THE VOLUME OF SUCH FINANCINGS IN THE PRELEVERAGEDBUYOUT DAYS MANY HAVE BEEN DONE BY COMPANIES NEW TO THE HIGHYIELD MARKET AND WITH SHAKY EARNINGS RECORDS AS A RESULT PRICES OF SMALLER ISSUES TEND TO FALL MORE PRECIPITOUSLY WHEN INTEREST RATES RISE OR FUND MANAGERS HAVE TO SELL BONDS FOREST OIL CORP OF BRADFORD PA BORROWED 100 MILLION IN AUGUST AFTER EKING OUT A 7 MILLION 1992 PROFIT FOLLOWING TWO YEARS OF LOSSES TOTALING MORE THAN 100 MILLION THE BONDS IMMEDIATELY SANK A POINT AND A HALF COSTING INVESTORS 15 FOR EVERY 1000 BOND ACCORDING TO ONE TRADER MANY SMALL MUTUAL FUNDS HAVE SEIZED ON MINIJUNK AS A WAY TO IMITATE THE ELEPHANTINE FUNDS AND STRUCTURE DEALS TO SUIT THEMSELVEST FURNITURE RENTAL CORP OF FAIRFAX VA WHICH IS OWNED BY ITS MANAGERS AND CITICORP'S VENTURECAPITAL UNIT WANTED TO REPLACE FINANCING FROM THE CREDIT UNIT OF WESTINGHOUSE ELECTRIC CORP WE TALKED TO A DOZEN BANKS BUT NOTHING WE OFFERED THEM SEEMED WORTHWHILE UNLESS IT WAS GOING TO BE GILTEDGED AND GOLDPLATED SAYS JOHN L BRACK JR CORT'S VICE PRESIDENT FOR FINANCE THE COMPANY WANTED TO BORROW 927 MILLION FOR 10 YEARS AT 1125 ANNUAL INTEREST MANAGERS AT DELCHESTER AND DEAN WITTER HIGHYIELD SECURITIES TOOK ABOUT 25 MILLION EACH BUT ONLY WITH TOUGHER TERMS 12 INTEREST ON SEVENYEAR BONDS WITH WARRANTS FOR 10 OF THE STOCK MR BRACK SAYS HE IS NONETHELESS PLEASED WITH THE DEAL THE ROUTE WE TOOK WAS CHEAPER AND WE ENDED UP GIVING AWAY LESS EQUITY THAN WITH A PUBLIC STOCK OFFERING T ROWE PRICE HAS DONE SIMILAR DEALS LENDING TO THREE HOLDERS OF CASINO LICENSES IN EXCHANGE FOR A STAKE IN THE RIVERBOATS THEY PLAN TO BUILD EFFECTIVELY IT'S A CONSTRUCTION LOAN THE FUND COMPANY'S MR SWINGLE SAYS NOT ALL THE PLANNED DEALS ARE LIKELY TO BE COMPLETED HOWEVER RISING YIELDS ON NEW JUNKBOND ISSUES AND A WIDENING INTERESTRATE GAP TO 4 1/2 PERCENTAGE POINTS ABOVE THE YIELD ON US TREASURY DEBT HAS LED A HALFDOZEN WOULDBE JUNK ISSUERS TO SHELVE DEALS OR POSTPONE THEM MANY ANALYSTS VIEW THAT AS A HEALTHY SIGN BUT WALL STREET FIRMS ARE STILL STOKING THE ENGINE WITH NEW DEALS JUNKBOND UNDERWRITING HAS GENERATED AS MUCH AS 15 BILLION IN COMMISSIONS FOR THEM SO FAR THIS YEAR MANY NEW ISSUES ARE A TOUGH SELL FORCING THE UNDERWRITERS TO TAKE BACK OLD BONDS FROM THE MUTUAL FUNDS IN A SWAP FOR THE NEW ISSUES SUCH SWAPPING TIES UP THE UNDERWRITERS' CAPITAL WITH ISSUES THAT MAY BE HARD TO RESELL AND REDUCES THE CAPITAL THE FIRMS HAVE AVAILABLE FOR HANDLING JUNK TRADING TRADERS SAY MORGAN STANLEY & CO MANAGED TO RAISE 400 MILLION FOR FLAGSTAR CORP THE RESTAURANTSERVICES COMPANY FORMERLY CALLED TW SERVICES INC THAT OWNS DENNY'S ONLY BY TAKING BACK ALMOST HALF THAT AMOUNT IN OLD BONDS WILL THE JUNKBOND MARKET GO OFF TRACK MR VERONDA THINKS IT MAY THE DENVER MONEY MANAGER INTENDS TO UPDATE HIS RENDITION OF CASEY JONES EACH WEEK 9310010061 931001 CORRECTIONS & AMPLIFICATIONS BROOKE GROUP LTD DIDN'T TRADE EXDIVIDEND ON THE NEW YORK STOCK EXCHANGE YESTERDAY AS REPORTED IN WEDNESDAY'S CORPORATE DIVIDEND COLUMN BECAUSE THE COMPANY POSTPONED ITS DISTRIBUTION OF ONE SHARE OF SKYBOX INTERNATIONAL FOR EACH BROOKE SHARE HELD 9310010060 931001 GM STOCK FALLS CONTRACT TALKS SPUR CONCERNS CLINTON PENSION PROPOSAL PACT IN CANADA LOOK EXPENSIVE TO INVESTORS BY NEAL TEMPLIN AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MOTORS CORP STOCK FELL 48 IN HEAVY VOLUME AMID CONCERNS THE COMPANY WAS LOSING CONTROL OF ITS LABOR NEGOTIATIONS AND MAY BE HEADED TOWARD ANOTHER EXPENSIVE AGREEMENT WITH THE UNITED AUTO WORKERS WALL STREET APPARENTLY WAS SPOOKED BY THE TENTATIVE THREEYEAR LABOR PACT SIGNED BETWEEN GM AND THE CANADIAN AUTO WORKERS LATE WEDNESDAY THAT BEEFED UP BENEFITS FOR JOBLESS WORKERS GM STOCK WAS DOWN 625 CENTS WHEN THE NEW YORK STOCK EXCHANGE OPENED IT CLOSED THE DAY DOWN 2125 AT 4175 ON VOLUME OF 78 MILLION SHARES IN COMPOSITE TRADING THE TRADING VOLUME WAS FOUR TIMES GM'S DAILY AVERAGE OF 19 MILLION SHARES THE MARKET ALSO MAY HAVE REACTED TO LEGISLATION PROPOSED BY THE CLINTON ADMINISTRATION TO REQUIRE COMPANIES WITH UNDERFUNDED PENSION FUNDS TO SPEED UP CONTRIBUTIONS TO THEIR FUNDS GM WHOSE PENSION PLANS ARE UNDERFUNDED BY ABOUT 19 BILLION REPRESENTS ABOUT HALF THE TOTAL PENSION DEFICIT FOR COMPANIES IN THE US A GM SPOKEWOMAN SAID IT WAS TOO EARLY TO SAY WHAT EFFECT THE NEW LEGISLATION MIGHT HAVE ON THE COMPANY'S PENSION COSTS HOWEVER THEY LIKELY WOULD RISE BECAUSE THE MEASURE WOULD INCREASE INSURANCE PREMIUMS PAID BY UNDERFUNDED PLANS TO THE PENSION BENEFIT GUARANTY CORP THE LEGISLATION ALSO WOULD CHANGE THE ASSUMPTIONS COMPANIES CAN MAKE IN DETERMINING THE SIZE OF THEIR PENSION LIABILITIES WHICH COULD SWELL GM'S 19 BILLION DEFICIT TO WELL ABOVE 20 BILLION WALL STREET ALSO IS WORRIED ABOUT THE TENTATIVE LABOR CONTRACT BETWEEN FORD MOTOR CO AND THE UAW WHICH THE UNION WANTS TO USE AS A PATTERN FOR GM AS WELL THE FORD CONTRACT SWEETENS PENSIONS FOR RETIRING UAW WORKERS BY 230 A MONTH BY 1996 AND ANALYSTS SAY THAT PROVISION WOULD ADD ANOTHER 3 BILLION TO GM'S PENSION OBLIGATIONS IF IT SIGNS A SIMILAR DEAL INVESTORS FEAR THE UAW IS BACKING GM INTO A CORNER AND THAT GM ISN'T WILLING TO TAKE ON THE UNION SAID LEHMAN BROTHERS ANALYST JOSEPH PHILLIPPI NOW INVESTORS ARE VOTING WITH THEIR FEET PAINEWEBBER'S STEPHEN GIRSKY SAID GM GAINED LITTLE OR NO RELIEF IN THE PACT WITH THE CAW THAT AGREEMENT REDUCES THE PROBABILITY OF GM GAINING RELIEF IN KEY AREAS IN THE US HOWEVER ANALYST WENDY NEEDHAM OF SMITH BARNEY HARRIS UPHAM SAID THE MARKET WAS OVERREACTING TO THE CANADIAN DEAL SHE SAID IT DIDN'T MAKE SENSE FOR GM TO TAKE ON THE CAW WHEN IT'S PREPARING FOR A TOUGH SET OF CONTRACT NEGOTIATIONS IN THE US NEW YORK MONEY MANAGER MARIO GABELLI SHRUGGED OFF THE GM STOCK RETREAT HIS COMPANY OWNS A TOTAL OF 15 MILLION GM SHARES IN TWO GABELLI MUTUAL FUNDS AND FOR OTHER MONEYMANAGEMENT CLIENTS AND WE'LL BE ADDING TO IT HE SAID THE SHORTRUN PROBLEMS FOR GM HAVE CREATED A BUYING OPPORTUNITY IN GM STOCK MR GABELLI SAID JACK SMITH GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS BEEN A BREATH OF FRESH AIR IN THE COMPANY AND THE QUALITY OF THE CARS IS IMPROVING THE MAJOR NEGATIVE AND WHAT I THINK IS DRIVING THE STOCK THE PAST FEW DAYS IS THE LABOR SITUATION EVERYONE IS AWARE GM HAS A MAJOR DISADVANTAGE COMPETITIVELY AND HAS TO GET ITS HANDS AROUND THE COSTS GM OFFICIALS ALSO ARGUED PRIVATELY THAT THE CANADIAN DEAL SHOULDN'T BE SEEN AS A HARBINGER OF ITS LABOR STRATEGY IN THE US BECAUSE THE LABOR SITUATIONS IN THE TWO COUNTRIES ARE VERY DIFFERENT THEY SAID CANADA'S LABOR COSTS ARE LOWER THAN THOSE IN THE US AND HEALTHCARE COSTS AREN'T A MAJOR CONCERN THERE IN ADDITION GM'S JOBSECURITY COSTS IN CANADA ARE LOWER THAN IN THE US AND ITS PENSION FUNDS ARE IN BETTER SHAPE THERE THEY SAID IN TORONTO TALKS WENT DOWN TO THE WIRE BEFORE THE CAW REACHED A TENTATIVE AGREEMENT ON A NEW THREEYEAR CONTRACT WITH GM WHILE GM WAS PREPARED TO FOLLOW THE INCREASES IN WAGES PENSIONS AND TIME OFF THAT THE CANADIAN UNION EARLIER NEGOTIATED WITH CHRYSLER CORP LOCAL ISSUES AT TWO ASSEMBLY PLANTS BOGGED DOWN TALKS UNTIL ABOUT 30 MINUTES BEFORE THE UNI 1159 PM STRIKE DEADLINE ON WEDNESDAY GM HEAD NEGOTIATOR BILL TATE SAID THE COMPANY WON GREATER OPERATIONAL FLEXIBILITY AT THE OSHAWA ONTARIO PLANTS WHICH WILL SAVE MILLIONS IN TRAINING COSTS MR TATE SAID WE DON'T BELIEVE WE'LL COME ANYWHERE CLOSE TO USING UP THE MORE THAN 400 MILLION CANADIAN DOLLARS US301 MILLION THAT THE COMPANY AGREED TO PROVIDE TO THE UNION'S JOBLESSBENEFIT FUNDS THE CAW'S 27700 GM WORKERS WILL VOTE ON THE AGREEMENT OVER THE WEEKEND 9310010059 931001 MANAGEMENT WHY SHAKEUPS WORK FOR SOME NOT FOR OTHERS BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL LAYING OFF WORKERS IS SUPPOSED TO IMPROVE PROFITS AND CUT COSTS BUT MANY COMPANIES THAT SLASH FURIOUSLY STILL PERFORM POORLY AND CAN'T FIGURE OUT WHY A NEW STUDY SHEDS LIGHT ON THIS PERSISTENT CORPORATE PARADOX BY EXPLAINING WHY DOWNSIZING SUCCEEDS AT SOME COMPANIES BUT FAILS AT MANY OTHERS CONDUCTED BY CONSULTANTS WYATT CO THE SURVEY OF 531 MAINLY BIG COMPANIES REPRESENTS ONE OF THE MOST COMPREHENSIVE LOOKS YET AT CORPORATE AMERICA'S RECENT WAVE OF LAYOFFS AND ORGANIZATIONAL SHAKEUPS THE STUDY ALSO OFFERS SOME OF THE FIRST CONCRETE EVIDENCE THAT MANAGEMENT BEHAVIOR DURING CUTBACKS SUCH AS THE WAY EMPLOYEES ARE TREATED CAN AFFECT A COMPANY'S FINANCIAL PERFORMANCE THIS SURVEY SEEMS TO PROVE THAT DOWNSIZING RUNS THE RISK OF CREATING AS MANY PROBLEMS AS IT SOLVES SAYS EDWARD LAWLER DIRECTOR OF THE CENTER FOR EFFECTIVE ORGANIZATIONS AT THE UNIVERSITY OF SOUTHERN CALIFORNIA HE AND OTHER MANAGEMENT EXPERTS AGREE WITH THE STUDY'S CONCLUSION THAT WHEN PROPERLY CONDUCTED DOWNSIZING CAN HELP TO IMPROVE PROFITS AND CUT COSTS THE NEW STUDY FINDS HOWEVER THAT MANY COMPANIES DOOM THEMSELVES TO DIFFICULTY BY RESTRUCTURING THE WRONG WAY IN PARTICULAR THE STUDY DEBUNKS MANY WIDELY USED TECHNIQUES FOR LOWERING COSTS AND REDUCING HEAD COUNTS LESS CONVENTIONAL APPROACHES OFTEN PROVE MORE EFFECTIVE AT IMPROVING A COMPANY'S FORTUNES THE SURVEY CONCLUDES AMONG THE FINDINGS MORE THAN HALF OF THE SURVEYED COMPANIES FROZE EMPLOYEES' PAY OR REDUCED PAY INCREASES DURING RESTRUCTURING BUT THESE TACTICS WERE JUDGED VERY EFFECTIVE BY ONLY ONE IN FIVE COMPANIES THE MOST EFFECTIVE COMPENSATION PRACTICE CREATING INCENTIVES BY TYING A PORTION OF EMPLOYEES' PAY TO CORPORATE PERFORMANCE JUST 31 OF THE COMPANIES POLLED USED THIS PAYFORPERFORMANCE APPROACH MORE THAN TWOTHIRDS OF THE COMPANIES STARTED TOTAL QUALITY MANAGEMENT PROGRAMS AS PART OF THEIR RESTRUCTURING EFFORTS SUCH PROGRAMS TRY TO FINE TUNE WORKPLACE PROCEDURES TO INCREASE THE QUALITY OF PRODUCTS AND SERVICES YET ONLY 41 OF THE COMPANIES SURVEYED CONSIDERED THESE PROGRAMS VERY EFFECTIVE ELIMINATING LOWVALUE WORK AND INCREASING AUTOMATION WERE LESS POPULAR BUT MORE EFFECTIVE MORE THAN 60 OF THE COMPANIES USED INDIVIDUAL COUNSELING TO PERSUADE OLDER WORKERS TO TAKE EARLYRETIREMENT PACKAGES BUT FINANCIAL PLANNING WORKSHOPS FOR LARGER GROUPS ACTUALLY PRODUCED HIGHER ACCEPTANCE RATES THIS MATTERS BECAUSE MANY CORPORATIONS USE EARLY RETIREMENTS TO REDUCE STAFF BEFORE THEY TURN TO LAYOFFS COMPANIES STILL THINK THAT ALL THEY NEED TO DO IS CUT HEADS BUT THAT WON'T YIELD WHAT THEY'RE LOOKING FOR SAYS JOHN J PARKINGTON DIRECTOR OF WYATT'S ORGANIZATION RESEARCH AND DEVELOPMENT PRACTICE IN SAN FRANCISCO DOWNSIZING REQUIRES MORE PLANNING AND THOUGHT IN ORDER TO BE EFFECTIVE THE STUDY COMES AMID CONTINUED CORPORATE CUTBACKS JUST YESTERDAY USAIR SAID IT WOULD CUT 2500 JOBS BY MID1994 MARTIN MARIETTA CORP ANNOUNCED 2000 LAYOFFS BY THE END OF 1994 AND WMX TECHNOLOGIES INC SAID IT IS CUTTING 1200 JOBS IN THE LAST MONTH AMR CORP'S AMERICAN AIRLINES CIGNA CORP AND RJ REYNOLDS TOBACCO CO A UNIT OF RJR NABISCO HOLDINGS CORP AMONG OTHERS HAVE ALSO ANNOUNCED LAYOFFS THREEFOURTHS OF THE COMPANIES IN THE WYATT STUDY SAID THEY CUT POSITIONS IN 1992 HALF HAD TRIMMED MORE THAN 10 OF THEIR STAFF SINCE 1990 YET MOST COMPANIES SAID THEIR JOB REDUCTIONS HAVE THUS FAR FAILED TO MEET THEIR GOALS NINETY PERCENT OF THE COMPANIES PLANNED TO REDUCE COSTS THROUGH RESTRUCTURING BUT ONLY 61 DID SIMILARLY 85 SOUGHT HIGHER PROFIT BUT JUST 46 SAW EARNINGS CLIMB AND 58 HAD HOPED FOR HIGHER PRODUCTIVITY ONLY 34 MET THAT GOAL ANOTHER SIGN OF PROBLEMS WITH CURRENT RESTRUCTURING PRACTICES MORE THAN HALF OF THE SURVEYED COMPANIES REFILLED POSITIONS WITHIN A YEAR OF ELIMINATING THEM THE RESULTS AREN'T ALL BAD COMPANIES REPORTED EVEN LESS SUCCESS WITH JOB CUTS IN A 1991 WYATT SURVEY OF 1005 BUSINESSES BUT THE LATEST STUDY ALSO SUGGESTS THAT CORPORATIONS ARE GETTING MORE AMBITIOUS ABOUT THE BENEFITS THEY SEEK FROM RESTRUCTURING FOR INSTANCE 61 OF THE COMPANIES REPORTED IMPROVED CUSTOMER SERVICE AS A GOAL NOT SURPRISINGLY ONLY 33 ACHIEVED IT KENNETH P DE MEUSE AN EXPERT ON DOWNSIZING AT THE UNIVERSITY OF WISCONSIN'S EAU CLAIRE CAMPUS SAYS THAT THE WYATT FINDINGS ECHO A RECENT STUDY HE COAUTHORED THE STUDY ENTITLED IS LEAN AND MEAN REALLY BETTER THAN FAT AND HAPPY FOUND THAT PROFITS AT BIG COMPANIES DECLINE FASTER AFTER LAYOFFS THAN BEFORE NOT ONLY IS A REDUCTION IN FORCE NOT A QUICK FIX AS MANY COMPANIES BELIEVE BUT IT'S MOST LIKELY NOT A FIX AT ALL DR DE MEUSE SAYS INDEED THE WYATT STUDY SAYS THAT MOST COMPANIES DON'T CURRENTLY PLAN OR PORTRAY THEIR RESTRUCTURING EFFORTS ADEQUATELY THIS GENERATES HIGH LEVELS OF EMPLOYEE RESISTANCE DYSFUNCTIONAL CORPORATE CULTURES AND A LACK OF LINEMANAGEMENT SUPPORT THE STUDY NOTES WYATT'S MR PARKINGTON SUGGESTS THAT BUSINESS LEADERS ALERT ALL MANAGERS AND EMPLOYEES EARLIER AND INVOLVE THEM MORE THOROUGHLY SEEKING THEIR ADVICE ABOUT HOW TO BETTER ORGANIZE WORK FOR INSTANCE MOST EMPLOYEES ARE MADE TO FEEL THEY'RE PART OF THE PROBLEM MR PARKINGTON SAYS WHAT SO FEW ORGANIZATIONS DO AND WHAT MORE NEED TO DO IS TO SEE THEIR EMPLOYEES AS PART OF THE SOLUTION THESE PRACTICES WERE RATED AMONG THE MOST EFFECTIVE IN HELPING BUSINESSES ATTAIN THEIR RESTRUCTURING GOALS ACCORDING TO A WYATT CO SURVEY 9310010057 931001 COMPUTERS MICROSOFT FOCUSES ON FUN AND GAMES BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH PATTY STONESIFER ISN'T SHY ABOUT SHOWING HER FEELINGS PUNCHING UP THE LATEST MICROSOFT CORP SOFTWARE FOR HOMECOMPUTER USERS SHE GIGGLES AT A SHANKED SHOT IN A COMPUTER GOLF GAME SHE GROANS AS A HERRERASAURUS DEVOURS A TRIASSIC PERIOD PROTOMAMMAL IN MICROSOFT'S DINOSAUR PROGRAM SHE TITTERS AS BUTCH AND SUNDANCE GO OFF THAT CLIFF IN A CLIP FROM A COMPUTER FILM GUIDE THIS STUFF IS SO COOL SHE SAYS HER ENTHUSIASM IS UNDERSTANDABLE MS STONESIFER HEADS MICROSOFT'S CONSUMER DIVISION A SMALL BUT RAPIDLY GROWING SEGMENT OF THE SOFTWARE JUGGERNAUT'S 4 BILLIONAYEAR BUSINESS AND SHE IS IN COMMAND OF AN AMBITIOUS HIGHSTAKES ATTACK BY MICROSOFT ON THE POTENTIALLY HUGE MARKET FOR EDUCATIONAL ENTERTAINMENT AND OTHER SOFTWARE FOR THE HOME A NEW MICROSOFT HOME INVASION WILL BEGIN MONDAY WHEN THE COMPANY UNVEILS FIVE NEW OR IMPROVED HOME PRODUCTS FOR USE WITH CDROM PLAYERS WHICH LET USERS POP IN COMPACT DISKS CONTAINING HUGE AMOUNTS OF INFORMATION GAMES AND OTHER PROGRAMMING THE PRODUCTS ARE PART OF A NEW MICROSOFT HOME LINE THEY WILL INCLUDE REDESIGNED VERSIONS OF SUCH PROGRAMS AS MICROSOFT'S ENCARTA ENCYCLOPEDIA AND A NEW COMPUTERIZED ART GALLERY MODELED AFTER LONDON'S FAMED NATIONAL GALLERY OUR OBJECTIVE IS A NEW TITLE EVERY TWO WEEKS 100 IN THE FIRST 18 MONTHS MS STONESIFER SAYS TITLE IS COMPUTER TALK FOR ENTERTAINMENT AND EDUCATION PROGRAMS MS STONESIFER'S PLANNED PACE IS EXTRAORDINARY BY INDUSTRY STANDARDS BUT SHE SAYS MICROSOFT'S CONSUMER GROUP HAS TRIPLED ITS STAFF TO MORE THAN 500 IN THE PAST THREE YEARS THE NEW PRODUCTS WILL BE PRICED TO SELL THE UPGRADED ENCARTA FOR EXAMPLE WILL GO FOR 99 THROUGH YEAR END AFTER WHICH THE SUGGESTED RETAIL PRICE JUMPS TO 395 ALSO FALLING UNDER THE MICROSOFT HOME UMBRELLA SOFTWARE FOR PERSONAL FINANCE ELECTRONIC PUBLISHING AND MOST LIKELY PROGRAMS THAT WILL RUN ON TELEVISIONSETTOP BOXES NOW BEING DEVELOPED BY ANOTHER MICROSOFT DIVISION MICROSOFT HAS BEEN WORKING ON POTENTIAL TV PROGRAMMING PROJECTS WITH HOLLYWOOD'S CREATIVE ARTISTS AGENCY THE COMPANY ALSO CONFIRMS IT IS EXPLORING WHETHER TO OFFER A COMPUTER ONLINE SERVICE SIMILAR TO AMERICAN ONLINE OR COMPUSERVE MICROSOFT'S CONSUMER BLITZ IS A NEW STRATEGIC THRUST FOR THE SOFTWARE GIANT AND SIGNALS A REDOUBLED COMMITMENT TO A MARKET IN WHICH ITS EARLIER FORAYS HAVE BEEN LACKLUSTER IT STEMS FROM CHAIRMAN BILL GATES'S BELIEF THAT THE TUMBLING PRICES AND INCREASING POWER OF PERSONAL COMPUTERS ULTIMATELY WILL MEAN THAT VIRTUALLY EVERY US HOUSEHOLD WILL FEATURE MULTIMEDIA BUILT AROUND PCS THAT PRODUCE HIGHGRADE VIDEO AND SOUND HE AND OTHER COMPUTER GURUS SAY THOSE MACHINES WILL INCREASINGLY BE USED FOR ENTERTAINMENT EDUCATION SHOPPING AND HOME BANKING INSTEAD OF JUST FOR BUSINESS OR WORK WITH MICROSOFT HOME MR GATES IS TRYING TO MAKE MICROSOFT A PREEMINENT PROVIDER OF CONTENT FOR HOMECOMPUTER USERS JUST AS MICROSOFT HAS COME TO DOMINATE OTHER AREAS SUCH AS OPERATING SYSTEMS WHERE ITS WINDOWS AND MSDOS PRODUCTS ARE INDUSTRY STANDARDSAND APPLICATION PROGRAMS LIKE SPREADSHEETS AND WORD PROCESSORS THAT RUN ON WINDOWS MICROSOFT'S PROFIT MARGINS IN THOSE BUSINESSES ARE SHRINKING AS REVENUE GROWTH SLOWS ITS BARGING INTO CONSUMER PRODUCTS WILL DO MUCH TO SHAPE THE FUTURE OF MICROSOFT NOT TO MENTION THE FATE OF DOZENS OF OTHER COMPANIES ANGLING FOR THE SAME CUSTOMERS THE CONSUMER MARKET IS LARGE AND UNPENETRATED AND MICROSOFT HAS GOT TO BE IN IT SAYS PETER ROGERS AN ANALYST WITH ROBERTSON STEPHENS & CO HOW THEY FARE COULD DEFINE THE LIMITS OF MICROSOFT AND WILL CERTAINLY INFLUENCE THE ENTIRE INDUSTRY MICROSOFT IS A FEARED COMPETITOR BECAUSE OF ITS AGGRESSIVE COMPETITIVE PRACTICES AND IMMENSE RESOURCES STILL ITS PAST EFFORTS TO CRACK THE CONSUMER MARKET HAVE OFTEN FIZZLED MICROSOFT MONEY A PERSONALFINANCE PROGRAM INTRODUCED IN SEPTEMBER 1991 HAS FAILED TO GAIN MUCH MARKET SHARE FROM INTUIT INC WHICH DOMINATES THAT MARKET WITH ITS QUICKEN PROGRAM MORE RECENTLY MICROSOFT'S WORKS PROGRAM WHICH COMBINES RUDIMENTARY WORDPROCESSING SPREADSHEET AND OTHER CAPABILITIES HAS BEEN ECLIPSED AMONG USERS OF APPLE COMPUTER INC'S MACINTOSH PCS BY A PRODUCT FROM APPLE'S CLARIS CORP UNIT MICROSOFT PUBLISHER A DESKTOPPUBLISHING PROGRAM AIMED AT BEGINNERS HAS GOTTEN GOOD REVIEWS BUT HASN'T BEEN A HUGE SUCCESS MOREOVER IN MULTIMEDIA SOFTWARE MICROSOFT IS BEHIND THE TECHNOLOGICAL CURVE SNIFFS PAUL JAIN PRESIDENT OF MEDIA VISION INC WHICH SPECIALIZES IN MULTIMEDIA PRODUCTS THEY'RE FALLING INTO A RUT OF JUST ISSUING TITLE AFTER TITLE WITHOUT MASTERING THE TECHNOLOGY ADDS ED AUER PRESIDENT AND CHIEF OPERATING OFFICER OF BRODERBUND SOFTWARE INC A LEADING MAKER OF EDUCATIONAL SOFTWARE FOR HOME COMPUTERS IT WOULD BE DANGEROUS TO DISCOUNT MICROSOFT'S POTENTIAL BUT WE AREN'T SHAKING IN OUR BOOTS IN ADDITION SOME SKEPTICS SAY THE CONSUMER BUSINESS MAY NOT BE THE GOLD MINE MICROSOFT AND OTHER ENTHUSIASTS ENVISION AMONG OTHER THINGS THE SKEPTICS ARGUE THAT CDROM TECHNOLOGY MAY STILL BE TOO CLUNKY AND SLOW TO CAPTURE CONSUMERS' FANCY MICROSOFT'S MS STONESIFER ACKNOWLEDGES THAT SOME MICROSOFT CONSUMER PRODUCTS HAVE GONE AWRY BUT WE MADE OUR MISTAKES EARLY SHE SAYS ONE OF THE MAIN LESSONS OF THOSE MISTAKES GLEANED FROM HUNDREDS OF HOURS OF FOCUSGROUP STUDIES PEOPLE THINK OF MICROSOFT AS TECHNOLOGICAL INNOVATION BUT THEY DON'T THINK OF MICROSOFT AS FUN SHE SAYS IT HAS BEEN MS STONESIFER'S MISSION TO CHANGE THAT PERCEPTION ALTHOUGH SHE'S NO TECHNONERD SHE SAYS THAT IS AN ADVANTAGE IN HELPING MICROSOFT UNDERSTAND WHAT AVERAGE CONSUMERS WANT FROM SOFTWARE SHE COMMONLY TESTS OUT PROTOTYPE PROGRAMS ON HER KIDS IT'S AMAZING WHAT KIND OF INSIGHT YOU CAN GET FROM A 12YEAR OLD SHE SAYS INDEED MS STONESIFER'S ENTIRE THRUST HAS BEEN TO ENLIVEN AND SIMPLIFY MICROSOFT'S CONSUMER PRODUCTS WE'VE TRIED TO MAKE THE PRODUCTS MORE INTUITIVE SHE SAYS ZIPPING THROUGH THE ENCARTA ENCYCLOPEDIA'S TEXT SOUND AND VIDEO OFFERINGS ON MUSIC RANGING FROM MONGOLIAN FOLK SONGS TO DOC WATSON YOU'VE GOT TREMENDOUS COMPUTING POWER AT YOUR FINGERTIPS BUT WE DON'T WANT YOU TO EVER HAVE TO STOP TO FIGURE OUT HOW TO USE IT MICROSOFT DOES HAVE A BIG COMPETITIVE EDGE BECAUSE SO MANY OF ITS PRODUCTS MAINLY OPERATING SYSTEMS ARE ALREADY IN COMPUTER USERS' HANDS DESPITE THAT MANY ANALYSTS THINK THE COMPANY'S NEW CONSUMER OFFERINGS MAY NOT BE ENOUGH TO IMMEDIATELY VAULT IT TO THE FOREFRONT OF THE CONSUMER DERBY WHERE COMPANIES LIKE BRODERBUND ELECTRONIC ARTS INC EDMARK CORP AND INTUIT ARE STRONG PLAYERS YOU CAN'T COUNT MICROSOFT OUT BUT IT ISN'T DRIVING ANYBODY UNDER IN THE CONSUMER BUSINESS THE WAY IT IS IN ITS MORE ESTABLISHED BUSINESSES SAYS ROBERTSON STEPHENS' MR ROGERS MS STONESIFER IS BOUYANT NONETHELESS SHE SAYS HER CONSUMER GROUP IS ALREADY PROFITABLE SHE WON'T DISCLOSE REVENUE FIGURES BUT ANALYSTS FIGURE THE BUSINESS IS GENERATING ANNUAL SALES OF ABOUT 100 MILLION RIGHT NOW WE AREN'T REALLY WORRIED ABOUT DOWNSIDE RISK SHE SAYS WE ONLY WONDER HOW BIG THE UPSIDE IS AND WE THINK IT COULD BE ENORMOUS 9310010056 931001 BUSINESS BRIEF SONAT INC ENERGY CONCERN ACQUIRES PROPERTIES FOR 144 MILLION SONAT INC SAID IT MADE FOUR OIL AND NATURAL GAS ACQUISITIONS FOR ABOUT 144 MILLION THE BIRMINGHAM ALA ENERGY CONCERN SAID IT BOUGHT WELLS IN OFFSHORE LOUISIANA TEXAS AND OKLAHOMA FROM MOBIL CORP PRUDENTIAL INSURANCE CO OF AMERICA TEXACO INC AND CHEVRON CORP SONAT IS ALSO PICKING UP 4 MILLION IN DEBT AS PART OF THE ACQUISITIONS SONAT WOULDN'T DISCLOSE THE PURCHASE PRICE IN EACH ACQUISITION THE COMPANY SAID THE ACQUISITIONS WOULD BOOST ITS NATURAL GAS PRODUCTION BY 24 MOBIL'S SALE OF INTERESTS IN 13 PRODUCING PROPERTIES AND ASSOCIATED PIPELINES IN THE GULF OF MEXICO IS PART OF ITS CURRENT STRATEGY TO SELL NONCORE ASSETS MOBIL SOLD THE PROPERTIES TO A UNIT OF SONAT FOR 1336 MILLION PRODUCTION ASSOCIATED WITH THE SALE IS 80 MILLION CUBIC FEET OF GAS AND 270 BARRELS OF CONDENSATE AN OILLIKE LIQUID RESERVES SOLD REPRESENT ABOUT 1 OF MOBIL'S GAS RESERVES IN THE US 9310010055 931001 LETTERS TO THE EDITOR BELTWAY JOURNALISTS BECOME CHEERLEADERS ALBERT R HUNT'S SEPT 23 PEOPLE & POLITICS COLUMN AMERICANS' ARDOR FOR THE TAX ISSUE COOLS IN WHICH HE ASSERTS THAT THE REAL TAX DEBATE IS THE SHAPE NOT THE LEVEL OF TAXATION IS A GOOD EXAMPLE OF WHY THE WASHINGTON PRESS CORPS HAS LOST CREDIBILITY WITH MANY PEOPLE ACROSS THE COUNTRY COMPANIES ARE STREAMLINING THEIR OPERATIONS AND ELIMINATING UNNECESSARY COSTS ALL IN AN EFFORT TO SURVIVE AGAINST GLOBAL COMPETITION THE PUBLIC SECTOR MEANWHILE JUST DOESN'T GET IT WHICH IS WHY TAXPAYERS STILL SUPPORT THINGS SUCH AS THE FEDERAL HELIUM RESERVE AND IT IS WHY THE CIVILIAN GOVERNMENT WORK FORCE HAS GROWN SO LARGE THAT IT NOW EXCEEDS ALL THE MANUFACTURING JOBS IN THE COUNTRY AN AGGRESSIVE INQUIRING PRESS CORPS COULD DO A GREAT SERVICE BY FOCUSING ON WASTEFUL AND COUNTERPRODUCTIVE GOVERNMENT PROGRAMS THEY'D HAVE LIFETIME JOB SECURITY INSTEAD TOO MANY WASHINGTON CORRESPONDENTS SEEM TO BECOME CAPTIVATED BY THE BELTWAY MENTALITY AND BECOME CHEERLEADERS FOR THE DISTRICT OF COLUMBIA'S BIGGEST LOCAL INDUSTRY MAYBE THERE SHOULD BE TERM LIMITS FOR JOURNALISTS TOO 9310010054 931001 BUSINESS BRIEF CROWNX INC CASH/STOCK BUYBACK OFFER MADE FOR PREFERRED SHARES CROWNX INC SAID IT WILL OFFER TO BUY UP TO 41 MILLION OF ITS CLASS II PREFERRED SHARES SERIES 1 FOR CASH AND STOCK WITH AN INDICATED VALUE OF 791 MILLION CANADIAN DOLLARS US595 MILLION TORONTOBASED CROWNX WHICH HAS INTERESTS IN LIFE INSURANCE AND NURSING HOMES SAID IT WILL OFFER C875 IN CASH AND 267 NEW NONVOTING CLASS A COMMON SHARES FOR EACH CLASS II PREFERRED SHARE CROWNX'S COMMON STOCK CLOSED ON THE TORONTO STOCK EXCHANGE YESTERDAY AT C395 UP 10 CANADIAN CENTS GIVING THE OFFER AN INDICATED VALUE OF C1930 A PREFERRED SHARE THE PREFERRED CLOSED AT C1650 CROWNX SAID THAT IF THE OFFER IS ACCEPTED IN FULL IT WILL ISSUE 109 MILLION NEW CLASS A NONVOTING SHARES INCREASING THE TOTAL OUTSTANDING TO 399 MILLION CROWNX HAS 65 MILLION CLASS II PREFERRED SHARES OUTSTANDING THE COMPANY SAID HOLDERS OF 22 MILLION HAVE INDICATED THEY INTEND TO ACCEPT THE OFFER 9310010053 931001 STOCKPICKERS OFFER WAYS TO PIERCE GLOOM BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PICK YOUR STOCKS CAREFULLY IN THE FOURTH QUARTER INVESTMENT STRATEGISTS ARE FORECASTING THAT THE OVERALL MARKET WILL FLAG DURING THE QUARTER BUT GAINS ARE POSSIBLE IN TECHNOLOGYRELATED GROUPS SUCH AS SEMICONDUCTORS AND TELECOMMUNICATIONS BOTH OF WHICH WERE TOP PERFORMERS IN THE THIRD QUARTER WATCH OUT FOR GOLD AND BASIC MATERIALS SUCH AS ALUMINUM AND CHEMICALS THE STRATEGISTS ALSO WARN YOU COULD ALMOST THROW A DART AT TELECOMMUNICATIONS COMPANIES AND WIN BUT IN OTHER AREAS YOU HAVE TO BE VERY SELECTIVE SAYS AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF FURTHER STRONG GAINS IN ECONOMICALLY SENSITIVE STOCKS WHICH HAVE LED THE MARKET FOR MOST OF THE YEAR ARE FAR FROM ASSURED THE ANALYSTS SAY THAT'S BECAUSE MANY LARGE INDUSTRIAL COMPANIES ARE FEELING THE INCREASING WEIGHT OF THE GLOBAL ECONOMIC SLOWDOWN THE WORLDWIDE MALAISE IS OFFSETTING WHATEVER GAINS THE US ECONOMY IS EKING OUT THE ANALYSTS SAY THE CYCLICAL STORY IS STARTING TO GET LONG IN THE TOOTH FOR INVESTORS SAYS JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO STRONG HEADWAY MR BATTIPAGLIA PREDICTS THE DOW JONES INDUSTRIAL AVERAGE WILL SLIDE 5 TO 7 FROM THE 3600 LEVEL DURING THE QUARTER BUT INVESTORS CAN BUCK THAT TREND BY JUMPING INTO SEMICONDUCTOR STOCKS MR BATTIPAGLIA SAYS HE POINTS OUT THAT US CHIP MAKERS ARE MAKING STRONG HEADWAY IN COMPETITION WITH JAPANESE MANUFACTURERS WHICH ARE SUFFERING FROM A STRONG YEN AND A POOR DOMESTIC ECONOMY THE CONTENT OF SEMICONDUCTORS IN EVERYTHING WE TOUCH IS GROWING SAYS MR BATTIPAGLIA THIS IS A SUPER CYCLE WE'RE IN AND HAS NOT PLAYED OUT BY ANY STRETCH OF THE IMAGINATION IN A RELATED SECTOR TELECOMMUNICATIONS STOCKS ARE THE FAVORITES OF MANY STRATEGISTS THE FIGHT FOR PARAMOUNT ONLY ADDS LUSTER TO THE GROUP ANALYSTS SAY THE POSSIBILITY OF FUTURE MARRIAGES IS FOCUSING ATTENTION ON TELECOMMUNICATIONS COMPANIES AND PROBABLY WILL ENHANCE STOCK PRICES THEY ADD THE ALLIANCES AND RELATIONSHIPS ARE GETTING MUCH BIGGER THAN ANYONE IMAGINED SAYS MR BATTIPAGLIA IT MEANS THESE STOCKS ARE LIKELY TO BE RELATIVELY STRONG PERFORMERS MR MOORE OF ARGUS INVESTMENT POINTS OUT THAT SURGING DEMAND FOR TELECOMMUNICATIONS PRODUCTS IS A GLOBAL PHENOMENON STRETCHING FROM EASTERN EUROPE TO CHINA AND BACK TO THE US TECHNOLOGY AND TELECOMMUNICATIONS ARE STILL WHERE TO LOOK FOR OUTSTANDING PERFORMANCE TO THE END OF THE YEAR MR MOORE SAYS IT'S A TREND THAT'S LIKELY TO BE AROUND FOR SOME TIME SOME ANALYSTS WHO ARE EXPECTING INTEREST RATES TO CONTINUE FALLING SEE POTENTIAL GAINS IN STOCK GROUPS LINKED TO LOWER RATES RICHARD HOFFMAN CHIEF INVESTMENT STRATEGIST AT COWEN & CO SEES LONGTERM RATES HEADING TOWARD 55 AS INFLATION REMAINS SUBDUED AS A RESULT HE PREDICTS CONTINUED STRONG PERFORMANCES IN THE FOURTH QUARTER AMONG HOME BUILDERS BUILDING MATERIALS CONCERNS BIG BANKS INSURANCE COMPANIES AND BROKERAGE FIRMS ALL OF THOSE GROUPS TURNED IN SPARKLING PERFORMANCES DURING THE PAST QUARTER HE ALSO BELIEVES THE UTILITIES SECTOR OFFERS SOME PROMISE THE INTEREST RATE PLAY IS STILL AVAILABLE SAYS MR HOFFMAN OTHER ANALYSTS ARE LESS OPTIMISTIC ABOUT RATES JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH IN NEW YORK WHICH IS UNRELATED TO ARGUS INVESTMENT SAYS AN INCREASE IN RATES COULD BE DETRIMENTAL TO FINANCIAL STOCKS IF RATES MOVE HIGHER SHARES OF THESE COMPANIES WILL FALL WELL BEFORE THERE'S ANY NEGATIVE IMPACT ON THEIR EARNINGS HE SAYS JAPAN'S ECONOMIC DIFFICULTIES BENEFIT NOT ONLY US TECHNOLOGY COMPANIES BUT AUTO MAKERS AND HEAVY MACHINERY CONCERNS MR HOFFMAN SAYS THESE GROUPS HAVE BEEN IN PRIMARY BULL MARKETS AND THIS WILL CONTINUE IN THE FOURTH QUARTER HE PREDICTS AMONG HIS FAVORITES IN HEAVY MACHINERY ARE DEERE AND CATERPILLAR MR HOFFMAN EXPECTS FOOD RETAILERS TO BENEFIT FROM THE BATTLE BETWEEN THE BRANDED FOOD MAKERS AND THE COMPANIES PRODUCING GENERIC GOODS THE FOOD CHAINS ARE GAINING FROM SALES OF GENERICS WHILE STRIKING STRONGER DEALS WITH THE BRANDED NAMES AS EVERYBODY FIGHTS FOR SHELF SPACE HE SAYS PRECIOUS METALS WHICH TOOK A STUNNING DIVE DURING THE THIRD QUARTER AFTER SOARING FOR MUCH OF THE YEAR MAY BE HEADED FOR STILL MORE TROUBLE MR HOFFMAN PREDICTS HE SAYS GOLD WILL REMAIN UNDER PRESSURE BECAUSE INFLATION WILL BE SUBDUED AND A FRESH ROUND OF GLOBAL CURRENCY INSTABILITY ISN'T LIKELY ALSO HE ARGUES THE PRICES OF THE MINING STOCKS ARE FAR TOO HIGH RELATIVE TO THE PRICE OF THE COMMODITY THE GOLD MINING STOCKS ARE ABSOLUTE SALES MR HOFFMAN ADVISES AMONG BEATENDOWN DRUG STOCKS SOME VALUES ARE EMERGING SAYS MR SOLLOWAY OF ARGUS RESEARCH ALTHOUGH HE BELIEVES DRUG COMPANIES WILL CONTINUE TO SUFFER FROM PRICING PRESSURES SOME OF THE GIANTS SUCH AS GLAXO MERCK AND PFIZER MAY RECOVER A BIT WHAT PEOPLE HAVE MISSED IS THAT SOME COMPANIES ARE REPORTING VERY STRONG VOLUME GAINS HE SAYS LOW PRICES ALSO HAVE HELD BASIC MATERIALS STOCKS IN CHECK AND MANY ANALYSTS BELIEVE THESE CHEMICALS AND ALUMINUM CONCERNS WILL CONTINUE TO SUFFER BUT MR SOLLOWAY BELIEVES THEIR LOW PRICES MAY HAVE ALREADY DISCOUNTED MOST OF THE BAD NEWS FOR THESE COMPANIES THERE'S MORE POTENTIAL FOR POSITIVE SURPRISES AND SHARP INCREASES IN THE SHARE PRICES OF CHEMICAL COMPANIES THAN IN INDUSTRY GROUPS THAT HAVE ALREADY HAD A TREMENDOUS RUN LIKE AUTOS HE SAYS SEE RELATED ARTICLE AND A WORLD OF OPPORTUNITY BECKONS WSJ OCT 1 1993 9310010052 931001 BUSINESS BRIEF TIE/COMMUNICATIONS INC PRITZKERCONTROLLED FIRM ACQUIRES TELEPHONE ASSETS TIE/COMMUNICATIONS INC SAID IT HAS ACQUIRED A PORTION OF PACTEL MERIDIAN SYSTEMS'S TELEPHONESUPPLY BUSINESS FOR ABOUT 6 MILLION IN CASH AND ASSUMED LIABILITIES PACTEL MERIDIAN 80OWNED BY NORTHERN TELECOM LTD TORONTO AND 20OWNED BY A UNIT OF PACIFIC TELESIS GROUP PROVIDES TELEPHONES AND RELATED TELECOMMUNICATIONS SYSTEMS TO VARIOUS BUSINESSES TIE/COMMUNICATIONS BASED IN OVERLAND PARK KAN PURCHASED THE NONNORTHERN TELECOM EQUIPMENT CUSTOMER BASE THE COMPANY CONTROLLED BY THE PRITZKER FAMILY PROVIDES TELEPHONES AND TELEPHONE SYSTEMS FOR SMALL AND MEDIUMSIZED BUSINESSES THE ACQUISITION WILL PROVIDE TIE/COMMUNICATIONS WITH 14000 ACTIVE AND 22000 INACTIVE CUSTOMERS PRIMARILY IN CALIFORNIA PRIOR TO THE ACQUISITION THE COMPANY HAD ABOUT 4000 CUSTOMERS IN CALIFORNIA AND ESTIMATED THAT ITS ANNUAL REVENUE WAS ABOUT 100 MILLION 9310010051 931001 BUSINESS BRIEF FAIRFIELD COMMUNITIES INC THREE FINANCING DEALS CLOSE INCLUDING NOTE PLACEMENT FAIRFIELD COMMUNITIES INC LITTLE ROCK ARK SAID IT COMPLETED THREE FINANCING TRANSACTIONS INCLUDING AN 827 MILLION PRIVATE PLACEMENT OF 748 NOTES THROUGH A SUBSIDIARY THE NOTES OF FAIRFIELD FUNDING CORP A UNIT OF FAIRFIELD COMMUNITIES' FAIRFIELD ACCEPTANCE CORP SUBSIDIARY ARE SECURED BY A POOL OF 996 MILLION OF VACATION TIMESHARE AND LOT CONTRACTS RECEIVABLE PURCHASED FROM FAIRFIELD COMMUNITIES AND FAIRFIELD ACCEPTANCE THE COMPANY SAID PROCEEDS WERE USED TO REDUCE DEBT INCLUDING THE REPAYMENT OF 543 MILLION OF DEBTBEARING INTERESTS AT RATES RANGING FROM 7 TO 13125 AND 128 MILLION OF FAIRFIELD ACCEPTANCE'S 16 SENIOR SUBORDINATED NOTES DUE JULY 15 1999 FAIRFIELD COMMUNITIES ALSO SAID IT ENTERED A NEW 25 MILLION REVOLVING CREDIT AGREEMENT 9310010050 931001 BUSINESS BRIEF FREEPORT MCMORAN INC SPANISH UNIT WILL MANAGE ERCROS'S FERTILIZER BUSINESS FREEPORTMCMORAN INC SAID ITS SPANISH UNIT AGREED TO MANAGE FOR 12 MONTHS THE RESTRUCTURED FERTILIZER BUSINESSES OF SPANISH CONGLOMERATE ERCROS SA FREEPORTMCMORAN BASED IN NEW ORLEANS SAID MANAGEMENT WON'T INCLUDE ANY OBLIGATION TO FINANCE THE SPANISH FERTILIZER COMPANY IN THE 12MONTH PERIOD TERMS OF THE PACT WEREN'T DISCLOSED THE GOAL FREEPORT SAID IS TO ESTABLISH THE FERTILIZER BUSINESS AS A FINANCIALLY VIABLE CONCERN IF VIABLE FREEPORTMCMORAN RESOURCE PARTNERS LP A 51OWNED UNIT OF FREEPORTMCMORAN WILL NEGOTIATE TO ACQUIRE A CONTROLLING EQUITY INTEREST IN THE OPERATION THE SPANISH MANAGEMENT TEAM WILL BE HEADED BY THEODORE P FOWLER PREVIOUSLY SENIOR VICE PRESIDENT OF AGRICO FREEPORTMCMORAN'S FERTILIZER DIVISION 9310010049 931001 WORLD MARKETS TOKYO SHARES EDGE UP AMID CAUTION PRICES RISE IN LONDON BUT FINISH OFF THE DAY'S HIGHS A WALL STREET JOURNAL NEWS ROUNDUP IN A CAUTIOUS SESSION THAT LACKED FRESH BUYING INCENTIVES TOKYO STOCKS INCHED UP THURSDAY SUPPORTED BY INDEXLINKED ARBITRAGE AND INVESTMENT TRUST PURCHASES ON THE LAST DAY OF THE QUARTER IN LONDON SHARE PRICES ROSE BUT ENDED OFF THE DAY'S HIGHS AS MOMENTUM WOUND DOWN IN LATE TRADING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11103 DOWN 044 REFLECTING DECREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14512 UP 450 OR 32 WITH INDUSTRIAL OXYGEN OF MALAYSIA POSTING A 16 GAIN IN ITS LOCAL CURRENCY SEMICONDUCTOR STOCKS TRAILED AT 20964 DOWN 486 OR 23 WITH ADVANCED MICRO DEVICES OF THE US SLIDING 66 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 9531 POINTS WEDNESDAY ROSE 2830 TO 2010571 ON FRIDAY THE NIKKEI ROSE 11661 POINTS TO CLOSE THE MORNING SESSION AT 2022232 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES DOWN FROM 291 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 507485 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 521 POINTS WEDNESDAY ADDED 839 TO 162625 BUT DEPARTMENT STORES GAINED FROM AGGRESSIVE BUYING BY FOREIGN INVESTORS AS TALK OF POSSIBLE JAPAX REDUCTIONS CONTINUED TO FOCUS HOPES ON A REBOUND IN CONSUMER SPENDING STORAGE COMPANIES ROSE ON APPROVAL OF A PLAN FOR EMERGENCY RICE IMPORTS STEELMAKERS WHICH HAD BEEN BADLY BRUISED BY SLACK DEMAND AND REPORTS OF COMING LAYOFFS RECOVERED SOME OF THEIR RECENT LOSSES OIL SHARES WHICH GAINED OVERSEAS AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SAID WEDNESDAY IT WOULD HOLD PRODUCTION STEADY FOR THE CURRENT QUARTER WERE FLAT TO HIGHER IN TOKYO IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 74 POINTS TO 30375 OFF THE SESSION PEAK OF 30435 FOR THE THIRD QUARTER THE INDEX GAINED 47 THE FT30 INDEX SLIPPED 53 POINTS TO 23183 VOLUME WAS 6944 MILLION SHARES UP FROM 5117 MILLION SHARES A DAY EARLIER THOUGH MUCH OF YESTERDAY'S TURNOVER WAS ATTRIBUTED TO A MAJOR US SECURITIES FIRM'S FAIRLY LARGE BUY AND SELL ORDERS FOR A CLIENT OTHERWISE THE MARKET LACKED BUZZ THE LATE FIZZLE WAS ATTRIBUTED PARTLY TO A WEAK OPENING ON WALL STREET DRUG STOCKS RECOVERED FROM THIS WEEK'S LOSSES AS BARGAINHUNTERS MOVED IN BREWERS SLID FURTHER ON A BLEAK ASSESSMENT OF MARKET CONDITIONS DESPITE THE LONDON BOURSE'S MUTED END TO THE THIRD QUARTER THE TONE WAS CONSIDERED POSITIVE FOR THE FOURTH QUARTER AS ANALYSTS NOTED THAT THE 100STOCK INDEX LAST MONTH FELL BELOW 3000 ONLY ONCE SUSTAINING A ROBUST PERFORMANCE IN FRANKFURT STOCK PRICES ROSE SLIGHTLY IN DEALINGS DOMINATED BY PROFESSIONAL TRADERS THE DAX 30STOCK INDEX ADDED 802 POINTS TO 191571 INVESTORS OVERALL WERE STILL NERVOUS ABOUT THE RUSSIAN POLITICAL TURMOIL AND THE UPSET IN GERMAN LABOR UNIONS THE UNIONS HAVE SAID A MANAGEMENT DECISION TO CANCEL LABOR CONTRACTS IN THE METALWORKING INDUSTRY COULD LEAD TO WIDESPREAD STRIKES IN PARIS SHARES LOST GROUND AFTER SENTIMENT TURNED BEARISH IN AFTERNOON DEALINGS AFTER THE FRENCH CENTRAL BANK HELD ITS BENCHMARK INTEREST RATES UNCHANGED AT ITS SECURITIES REPURCHASE AGREEMENT BUT THE MAIN INDEX ENDED THE FIRST NINE MONTHS WITH A 138 GAIN IN AMSTERDAM STOCKS CLIMBED ON A RALLY IN THE DOLLAR AND OPTIONSRELATED BUYING WHILE WEAKER BOND PRICES AND WALL STREET'S SOFT OPENING DIDN'T DEPRESS SENTIMENT THOUGH VOLUME WAS MODERATE THE OIL SECTOR GOT A BOOST FROM HIGHER OIL PRICES FOLLOWING OPEC'S MOVE TO LIMIT PRODUCTION BUT TRANSPORT SHARES WERE WEAK BECAUSE A RISE IN FUEL PRICES MAY BOOST ALREADY HIGH EXPENSES IN MADRID EQUITIES ROSE NEAR THE CLOSE BUT ENDED BELOW INTRADAY HIGHS ERODED BY BASKET SALES IN ZURICH SHARES SLIPPED ON LATE PROFITTAKING AS NEW YORK EQUITIES TIPPED DOWN IN THE EARLY GOING INVESTORS WERE DISAPPOINTED ABOUT LITTLE MORNING BUYING ON A DAY FOR POSITIONSQUARING AT THE END OF THE QUARTER IN STOCKHOLM EQUITIES ADVANCED SUPPORTED BY DECLINING SWEDISH INTEREST RATES AND TECHNICAL FACTORS AS THE SWEDISH KRONA CURRENCY STRENGTHENED BOND AND MONEY MARKET RATES FELL AND INSTITUTIONAL PLAYERS HAD AN INTEREST IN SEEING STOCK PRICES RISE TO HELP THEIR PORTOLIOS AS THE QUARTER ENDED IN BRUSSELS STOCKS FINISHED BROADLY HIGHER IN STRONG VOLUME WITH GAINS PARTLY ATTRIBUTED TO THE WEAKER BELGIAN FRANC WHICH HAS DECLINED ABOUT 1 IN THE PAST WEEK INVESTORS ALSO WERE BELIEVED TO BE POSITIONING FOR A NEW ROUND OF REDUCTIONS IN INTEREST RATES IN SYDNEY SHARES ROSE ACROSS THE BOARD ON STRONG OIL PRICES A BUOYANT FUTURES MARKET AND ENDOFQUARTER WINDOW DRESSING BY INSTITUTIONAL INVESTORS IN HONG KONG OVERSEAS BUYING CONTINUED TO BUOY THE MARKET CATAPULTING SHARES TO A RECORD HIGH AHEAD OF A LONG WEEKEND THE BOURSE IS CLOSED FRIDAY FOR A HOLIDAY THE MARKET WAS PUSHED UP BY LOTS OF FRESH CASH FROM OVERSEAS FUNDS WITH A POSITIVE LONGTERM VIEW OF HONG KONG AND CHINA IN SINGAPORE PRICES JUMPED 1 ON A LATE BUYING WAVE AHEAD OF NEW RULES EFFECTIVE FRIDAY GOVERNING THE USE OF PENSION FUND MONEY WHICH IS EXPECTED TO RELEASE MORE CASH FOR INVESTMENT IN WELLINGTON EQUITIES STRENGTHENED THOUGH TRADING WAS THIN AS MANY INVESTORS WERE SIDELINED BECAUSE OF UNCERTAINTY ABOUT A NOV 6 ELECTION IN NEW ZEALAND BUT MANILA STOCKS FELL ON PROFITTAKING IN THE TELECOMMUNICATIONS SECTOR 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 9310010048 931001 BIG BOARD ACTS TO DISCIPLINE 2 STOCK FIRMS VIOLATIONS OF FEDERAL LAWS OR EXCHANGE'S RULES ALSO CITED FOR 23 PEOPLE BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST TWO FIRMS AND 23 INDIVIDUALS FOR VIOLATIONS OF THE EXCHANGE'S RULES OR FEDERAL SECURITIES LAWS BAIRD PATRICK & CO NEW YORK WAS FINED 10000 BASED ON FINDINGS THAT THE FIRM IN 1989 MADE FAULTY COMPUTATIONS IN ITS SPECIAL RESERVE BANK ACCOUNT AND FOR ONE WEEK IN MAY 1989 FAILED TO HAVE PHYSICAL POSSESSION OR CONTROL OF MARGIN SECURITIES CARRIED FOR CUSTOMER ACCOUNTS THE FIRM DIDN'T ADMIT OR DENY THE VIOLATIONS JOHN J GLYNN TREASURER OF BAIRD PATRICK SAID WE DO NOT CONSIDER THE MATTER WHICH WAS THE SUBJECT OF THE DISCIPLINARY ACTION TO BE A RULE VIOLATION WE PAID THE 10000 TO PUT AN END TO THE CONTINUED HARASSMENT BY THE STOCK EXCHANGE FIRST SECURITIES TRADERS INC MIDDLETOWN NJ A FORMER MEMBER FIRM WAS CENSURED WITHOUT ADMITTING OR DENYING GUILT FOR FAILING TO COMPLY WITH CAPITAL AND REPORTING REQUIREMENTS IN ADDITION EUGENE EDWARD BARKEY JR THE FIRM'S PRESIDENT AND SOLE EMPLOYEE WAS SUSPENDED SIX MONTHS FROM ANY SUPERVISORY OR BOOKKEEPING POSITION AND FINED 3000 HE DIDN'T ADMIT OR DENY THE FINDINGS ROBERT JAMES MUEGER BRICK NJ A FORMER INDEPENDENT FLOOR BROKER WAS BARRED ONE YEAR AFTER A CONTESTED HEARING FOR MAKING TRADES WHEN MINIMUM NET CAPITAL WAS BELOW THE REQUIRED LEVEL ERIC FREDRICK HO DEMAREST NJ WAS BARRED 11 MONTHS FOR MAKING MISSTATEMENTS ON HIS EMPLOYMENT APPLICATION THE PENALTY WILL BEGIN FOLLOWING CONCLUSION OF A PREVIOUS ONEYEAR BAR IMPOSED IN 1992 FOR SEVERAL VIOLATIONS INCLUDING PURCHASING SECURITIES BASED ON MATERIAL NONPUBLIC INFORMATION AND SHARING THE PROFITS IN THE ACCOUNT OF A CUSTOMER MR HO SAID HE DIDN'T DELIBERATELY MISSTATE INFORMATION AND CONSENTED TO THE ACTION BECAUSE HE COULDN'T AFFORD A LAWYER TO DEFEND HIM NYSE DIRECTORS REVERSED A DECISION BY A HEARING PANEL AND FOUND JOSEPH ODE ELLIS IV PHOENIX GUILTY OF FREERIDING OR PURCHASING SECURITIES IN A CASH ACCOUNT AND PAYING FOR THEM WITH PROCEEDS FROM THE SALE OF THE SAME SECURITIES THE CASE INVOLVED TRADES IN 1987 MR ELLIS A BROKER WAS CENSURED FIVE INDIVIDUALS WERE BARRED FOR MISAPPROPRIATION AMY BAMMAN SLACK KESWICK VA 3000 FROM HER MEMBER FIRM SHE DIDN'T ADMIT OR DENY FINDINGS MS SLACK SAID SHE DENIES ANY WRONGDOING OR EVER CONSENTING TO ANY DISCIPLINARY ACTION OR PENALTY HENRY EARLE THOMAS FLORENCE SC 32000 FROM A CUSTOMER DANIEL H COX SAN MATEO CALIF 12000 FROM A CUSTOMER WITHOUT ADMITTING OR DENYING GUILT BETH ANN VERONICA CAFARO VAIL COLO 3850 FROM HER MEMBER FIRM WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL J SCOTT SAN FRANCISCO 1500 OF CUSTOMER FUNDS JAMES SMALLEY MAITLAND FLA A FORMER BRANCH OFFICE MANAGER WAS FINED 3000 HE DIDN'T ADMIT OR DENY THAT HE FAILED TO SUPERVISE A BROKER WHO WAS MAKING UNSUITABLE TRADES IN A CUSTOMER ACCOUNT SEVERAL INDIVIDUALS WERE DISCIPLINED FOR SALES PRACTICE MISCONDUCT JEFFREY MICHAEL MILLER ROSLYN NY AFTER A CONTESTED HEARING WAS BARRED 10 YEARS WITH FIVE YEARS DEEMED SERVED THE BOARD MODIFIED A HEARING PANEL RECOMMENDATION OF A PERMANENT BAR MR MILLER ALLEGEDLY ALTERED A CUSTOMER ACCOUNT STATEMENT PROMISED TO REIMBURSE THE CUSTOMER FOR LOSSES AND GAVE THE CUSTOMER 169976 IN PERSONAL CHECKS FOR WHICH THERE WERE INSUFFICIENT FUNDS JEFFREY PAUL FURMAN IPSWICH MASS WAS BARRED SIX MONTHS WITHOUT ADMITTING OR DENYING THAT HE MADE UNSUITABLE TRADES AND MADE TRADES WITHOUT PROPER AUTHORIZATION STEPHEN KARETA NORTH ANDOVER MASS WAS BARRED 18 MONTHS FOR MAKING UNAUTHORIZED OR UNSUITABLE TRADES HE DENIED THE CHARGES DOUGLAS ALDEN PRICE SPRINGFIELD MASS WAS BARRED ONE YEAR FOR MAKING UNAUTHORIZED TRADES WITHOUT ADMITTING OR DENYING GUILT ALSO BRADLEY S BIELFIELD WEST BLOOMFIELD MICH WAS BARRED EIGHT MONTHS WITHOUT ADMITTING OR DENYING HE MADE UNAUTHORIZED TRADES MARTIN T WERTHER AVENTURA FLA WAS BARRED THREE MONTHS WITHOUT ADMITTING OR DENYING FINDINGS OF MAKING UNSUITABLE TRADES MARK HINCHION GURDA NORTHBROOK ILL WAS BARRED FOUR MONTHS WITHOUT ADMITTING OR DENYING MAKING TRADES WITHOUT PROPER AUTHORIZATION THOMAS ROMERO WESTPORT CONN WAS BARRED SIX MONTHS WITHOUT ADMITTING OR DENYING HE FAILED TO OBTAIN PROPER AUTHORIZATION FROM CUSTOMERS ANDREW F NICOLETTA MAHWAH NJ WAS BARRED TWO MONTHS FOR ACCEPTING ORDERS FROM ANOTHER PERSON WITHOUT WRITTEN CUSTOMER AUTHORIZATION WITHOUT ADMITTING OR DENYING CHARGES MR NICOLETTA SAID I DECIDED TO RESOLVE THIS MATTER TO AVOID COSTLY AND PROTRACTED LITIGATION EVEN THOUGH I BELIEVE I DID NOTHING WRONG TIMOLEON NICHOLAOU ROCHESTER MICH WAS BARRED ONE YEAR AND SUBJECT TO SPECIAL SUPERVISION FOR ONE YEAR FOR MAKING UNAUTHORIZED OR UNSUITABLE TRADES HE CONTESTED AND DENIED THE CHARGES WALTER L BAUMGARDNER AN ATTORNEY FOR MR NICHOLAOU SAID THE CASE HAS BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION WHICH HAS STAYED THE ENFORCEMENT ACTION HE SAID THE EXCHANGE DIDN'T GIVE HIS CLIENT HIS FUNDAMENTAL RIGHTS OF DUE PROCESS IF NECESSARY WE WILL CONTINUE THE APPEAL PROCESS THREE INDIVIDUALS WERE BARRED FOR FAILING TO COOPERATE WITH EXCHANGE INVESTIGATIONS EVAN JASON BINES BEECHHURST NY ROBIN RUEY BIN YIU CLAREMONT CALIF AND ANTHONY RUSSO ELMONT NY 9310010047 931001 BUSINESS BRIEF VALUEADDED COMMUNICATIONS INC ACQUISITIONS ARE PLANNED OF CALIFORNIA ILLINOIS FIRMS VALUEADDED COMMUNICATIONS INC SAID IT SIGNED LETTERS OF INTENT TO ACQUIRE TWO COMPANIES THAT WOULD ADD ABOUT 21 MILLION IN ANNUAL REVENUE AND SIGNED A CONTRACT IT EXPECTS TO ADD ABOUT 9 MILLION TO YEARLY REVENUE THE DALLAS TELECOMMUNICATIONS COMPANY SAID IT SIGNED LETTERS OF INTENT TO ACQUIRE SELECTEL CORP OF IRVINE CALIF AND STANDARD TELECOM INC OF OAKBROOK TERRACE ILL TERMS WEREN'T DISCLOSED THE COMPANY WON'T PROCEED WITH THE PREVIOUSLY PROPOSED ACQUISITION OF THRIFTY TEL INC OF ANAHEIM CALIF VALUEADDED SIGNED A CONTRACT TO PROVIDE TELECOMMUNICATIONS SERVICES TO NATIONAL OPERATOR SERVICES INC OF BETHESDA MD WHICH SERVES HOSPITALS HOTELS AND PAY TELEPHONES THE COMPANY SAID IT EXPECTS TO POST REVENUE OF AT LEAST 60 MILLION THIS YEAR AND OF MORE THAN 100 MILLION FOR 1994 VALUEADDED REPORTED NET INCOME OF 27 MILLION OR 33 CENTS A SHARE ON 492 MILLION IN REVENUE FOR 1992 9310010046 931001 INTERNATIONAL YELTSIN FOES IN PARLIAMENT EASE STANDOFF PACT SIGNED TO PARTIALLY LIFT BLOCKADE BY MILITARY AT ASSEMBLY BUILDING A WALL STREET JOURNAL NEWS ROUNDUP MOSCOW REPRESENTATIVES OF PRESIDENT BORIS YELTSIN AND THE RUSSIAN PARLIAMENT SIGNED AN AGREEMENT EARLY FRIDAY TO PARTIALLY LIFT THE BLOCKADE OF THE BESIEGED ASSEMBLY'S WHITE HOUSE HEADQUARTERS THIS WEEKEND WITNESSES SAID UNDER THE AGREEMENT REUTER REPORTED AUTHORITIES WOULD RESTORE POWER AND TELEPHONES TO THE PARLIAMENT BUILDING ALMOST IMMEDIATELY IN RETURN MOST ARMS HELD BY VOLUNTEER GUARDS IN THE WHITE HOUSE WOULD BE SURRENDERED TO STOCKPILES IN THE BUILDING ONCE THE SURRENDER OF WEAPONS HAS BEEN VERIFIED BY A JOINT MONITORING COMMISSION THE BLOCKADE COULD BE MOSTLY LIFTED THURSDAY MR YELTSIN HAD AGREED TO ALLOW HIS REPRESENTATIVES TO MEET WITH THOSE OF THE HOLDOUTS IN THE PARLIAMENT BUILDING THOUGH THE RUSSIAN PRESIDENT LEFT LITTLE ROOM FOR COMPROMISE IT TOOK THE PROFOUND FORCE OF THE RUSSIAN ORTHODOX CHURCH LEADER PATRIARCH OF MOSCOW AND ALL RUSSIA ALEKSII II WHO STEPPED IN AS MEDIATOR YESTERDAY TO HELP EASE THE STANDOFF AFTER DAYS OF REFUSING TO TALK WITH THE DIEHARD LEGISLATORS MR YELTSIN AGREED TO ALLOW THE PATRIARCH TO MEDIATE NEGOTIATIONS BETWEEN REPRESENTATIVES OF BOTH SIDES PARLIAMENT LOYALISTS INSIDE AND OUTSIDE THE WHITE HOUSE ALSO AGREED PRESIDENTIAL AIDES HAD SAID MR YELTSIN WOULDN'T ACCEPT SUCH PROPOSED COMPROMISES AS SIMULTANEOUS ELECTIONS FOR PARLIAMENT AND PRESIDENT NOR WOULD HE REVOKE HIS DECREE DISBANDING THE PARLIAMENT FORMER VICE PRESIDENT ALEXANDER RUTSKOI WHO WAS NAMED ACTING PRESIDENT BY THE REBEL PARLIAMENT HAD REITERATED THAT THOSE STILL IN THE PARLIAMENT BUILDING WOULDN'T LEAVE UNTIL THE PRESIDENT'S DECREE DISBANDING THE LEGISLATURE WAS REVOKED MEANWHILE LEADERS FROM MORE THAN 60 RUSSIAN REGIONS MET IN MOSCOW YESTERDAY DECLARING THEMSELVES A COUNCIL OF SUBJECTS OF THE FEDERATION WITH THE RIGHT TO ALTER THE CONSTITUTION HOLD REFERENDUMS AND CHANGE STATE BORDERS THE GROUP DEMANDED AN END TO THE BLOCKADE OF THE REBELLIOUS WHITE HOUSE A REVERSAL OF MR YELTSIN'S DECREE DISSOLVING PARLIAMENT AND SIMULTANEOUS EARLY ELECTIONS BUT RUSSIAN CABINET MEMBERS DIDN'T RESPOND TO THE GROUP'S MIDNIGHT DEADLINE A SENIOR PRESIDENTIAL AIDE SERGEI SHAKHRAI CALLED THE DECLARATION POLITICAL BLACKMAIL UNDER THE AGREEMENT SIGNED THIS MORNING THE PERSONAL BODYGUARDS OF MR RUTSKOI AND PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV AS WELL AS SEVERAL VOLUNTEERS WILL BE ALLOWED TO KEEP THEIR WEAPONS REUTER SAID FOR MOST OF THURSDAY CROWDS OF PARLIAMENT SUPPORTERS HAD GATHERED AND WERE DISBURSED BY ARMED GUARDS AT VARIOUS POINTS AROUND THE CITY THREE DEMONSTRATORS WERE SERIOUSLY INJURED AT A RALLY IN PUSHKIN SQUARE ACCORDING TO THE RUSSIAN INFORMATION AGENCY ELSEWHERE SEVERAL MILITIAMEN WERE SLIGHTLY INJURED SOME 82 PEOPLE HAVE BEEN ARRESTED IN MORE THAN A WEEK OF STANDOFF RUSSIAN TELEVISION REPORTS SAID FIRST DEPUTY PRIME MINISTER OLEG SOSKOVETS ONE OF THE OFFICIALS WHO WAS TO REPRESENT MR YELTSIN IN THE NEGOTIATIONS SAID THE GOVERNMENT WASN'T PLANNING TO ATTACK THE PARLIAMENT BUT MIGHT HAVE RESORTED TO FORCE IF ARMED GROUPS THERE HAD THREATENED VIOLENCE 9310010045 931001 BUSINESS BRIEF CR GIBSON CO PAPER PRODUCTS FIRM SEES IMPROVED QUARTERS AHEAD CR GIBSON CO AFTER DISAPPOINTING RESULTS IN 1992 AND EARLY 1993 IS BEGINNING TO SEE A GRADUAL IMPROVEMENT THE NORWALK CONN PAPER GIFTS PRODUCT COMPANY IS LOOKING FOR NET TO INCREASE IN BOTH THE THIRD AND FOURTH QUARTERS FROM A YEAR AGO OFFICIALS SAID GIBSON HAD ENJOYED CONSISTENT SALES GROWTH IN THE FIVE YEARS THROUGH 1991 BUT LOW CONSUMER CONFIDENCE AND UNCERTAINTY OVER THE PRESIDENTIAL ELECTION MADE 1992 DIFFICULT NOW GIBSON IS BACK ON A GROWTH TRACK SIMILAR TO PRIOR YEARS SAID FRANK A ROSENBERRY PRESIDENT AND CHIEF EXECUTIVE THE COMPANY'S ORDER BACKLOG FOR FUTURE SHIPMENTS AT SEPT 30 IS AT A RECORD HIGH FOR THE THIRD QUARTER A TIME WHEN BUSINESS USUALLY TAPERS OFF AS RETAILERS HAVE COMPLETED BUYING FOR CHRISTMAS MR ROSENBERRY ESTIMATES NET FOR THE QUARTER JUST ENDED WILL RISE TO SOMEWHERE AROUND 20 CENTS A SHARE OR A TOTAL OF ABOUT 15 MILLION ON INCREASED SALES IN THE YEARAGO THIRD QUARTER NET WAS 18 CENTS A SHARE OR 13 MILLION ON SALES OF 185 MILLION 9310010044 931001 WALL STREET UNDERWRITING 3RD QUARTER 1993 REVIEW NEW ISSUES POWER FINANCIAL FIRMS' SPRINT BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THANKS TO MAIN STREET INVESTORS WALL STREET DID EXPLOSIVE BUSINESS DURING THE FIRST NINE MONTHS OF THIS YEAR BRINGING 5301 STOCK AND BOND TRANSACTIONS TO MARKET AND EARNING NEARLY 66 BILLION IN THE PROCESS SALES OF NEW STOCKS AND BONDS TOTALED A RECORD 82055 BILLION A HEFTY 21 MORE THAN IN 1992'S FIRST NINE MONTHS BREAKING OUT THE THIRDQUARTER RESULTS THE PACE OF BUSINESS ON WALL STREET IS RUNNING 36 AHEAD OF 1992 LEVELS AND AT ABOUT THE SAME PACE OF THIS YEAR'S SECOND QUARTER MOREOVER THE RANKINGS SHOW THE CONSOLIDATION OF A POWERFUL TRIUMVIRATE FULLY ONETHIRD OF ALL THE DEALS THAT HAVE COME TO MARKET IN AMERICA SO FAR THIS YEAR WERE UNDERWRITTEN BY MERRILL LYNCH & CO GOLDMAN SACHS & CO OR LEHMAN BROTHERS INC THE INVESTMENTBANKING ARM OF AMERICAN EXPRESS CO AMONG THEM THESE THREE FIRMS RAISED 3344 BILLION A 40 CHUNK OF THE INDUSTRY TOTAL I CAN'T REMEMBER A SUMMER THAT WAS AS STRONG AS THIS SAYS ANTHONY BROOKS A MANAGING DIRECTOR AT LEHMAN BROTHERS I DON'T KNOW HOW MANY VACATIONS JUST DIDN'T GET TAKEN WITH INTEREST RATES LOW AND THE COST OF STAYING IN CASH SIMPLY TOO HIGH NOT ONLY ARE MUTUAL FUNDS AND PENSION FUNDS BUYING BUT THERE'S DIRECT PARTICIPATION BY INDIVIDUAL INVESTORS IN THIS MARKET HE SAYS BANKERS AND BROKERS SAY THAT WITH MORE THAN 500 BILLION PARKED IN LOWYIELDING MONEYMARKET FUNDS CASH THAT COULD FLOW INTO STOCKS AND BONDS AT ANY TIME THE ONLY TWO PINS LIKELY TO BURST THIS UNDERWRITING BUBBLE ARE RISING INTEREST RATES OR A SINKING STOCK MARKET MOREOVER SUPPLY IS KEEPING UP WITH DEMAND THE PIPELINE OF NEW DEALS WAITING TO COME TO MARKET IS HEAVILY LADEN SECURITIES DATA'S FORWARD CALENDAR LISTS 166 EQUITY ISSUES TOTALING 119 BILLION VIRTUALLY GUARANTEEING THAT NEW ISSUANCE OF STOCK WILL REMAIN HEAVY THROUGH YEAR END THE COMPANY SAYS THE UNDERWRITING RANKINGS MARSHALED EVERY QUARTER BY SECURITIES DATA CO ARE THE ALLIMPORTANT BOX SCORES OF THE WALL STREET GAME TO THE WINNERS OFTEN GO INCREASED COMPENSATION BUSINESS AND ALLIMPORTANT BRAGGING RIGHTS AND COMPANIES USE DOMINANCE IN THE RANKINGS AS A SELLING POINT TO GET MORE DEALS BUT FOR ALL THE INVESTMENTBANKING BLUSTER THE COMPANY RANKINGS FOR THE PAST SEVERAL QUARTERS HAVE BEEN CARVED IN STONE MERRILL LYNCH LEADS THE LIST IN VIRTUALLY EVERY MAJOR TYPE OF FINANCING OTHER THAN INTERNATIONAL EQUITIES EUROBONDS AND MORTGAGEBACKED AND ASSETBACKED DEBT IT HAS BEEN THE TOP OVERALL UNDERWRITER OF US NEW ISSUES FOR 23 CONSECUTIVE QUARTERS ITS UNDERWRITING FEES TOTAL 14 BILLION FOR THE YEAR TO DATE RANKED SECOND IN MOST CATEGORIES AGAIN FOR YEARS IS GOLDMAN SACHS LEHMAN BROTHERS WAS A CLOSE THIRD GOLDMAN'S SHARE OF THE UNDERWRITING FEE PIE WAS 8367 MILLION LEHMAN BROTHERS TOOK HOME 5776 MILLION IN FEES IT HAS BEEN IN THE PAST THREE YEARS SINCE THE RAGING WALL STREET BOOM BEGAN THAT THESE FIRMS HAVE CONSOLIDATED THEIR PROFITABILITY THREE YEARS AGO THE TOP SPOTS WERE OCCUPIED BY MERRILL GOLDMAN AND SALOMON BROTHERS INC A UNIT OF SALOMON INC BUT THE COMBINED TOTAL OF THEIR DEALS BACK THEN FOR THE NINE MONTHS 926 BILLION WAS LESS THAN MERRILL LYNCH ALONE UNDERWROTE IN STOCK AND BONDS SO FAR THIS YEAR SO WHO'S BUYING ALL THESE SECURITIES MOM AND POP BROKERS SAY A TERRIFIC THREEYEAR BULL MARKET AND LOW UNATTRACTIVE INTEREST RATES ARE COAXING MANY UNSOPHISTICATED INVESTORS INTO THE STOCK AND BOND MARKETS WHO'VE HAD THEIR ASSETS IN BANKS FOR MOST OF THEIR LIVES SAYS RICHARD RYALL SENIOR VICE PRESIDENT OF INVESTMENT MANAGEMENT AT ADVEST GROUP'S SPRINGFIELD MASS OFFICE THOSE ASSETS SHOULD PROBABLY STAY THERE IF THE INVESTORS CAN'T EMOTIONALLY TAKE PRICE FLUCTUATIONS MR RYALL SAYS A LOT OF THESE PEOPLE WILL BUY ANYTHING THAT'S OFFERED TO THEM IF THE YIELD IS HIGH ENOUGH SAYS SALOMON BROTHERS' JESSICA PALMER COHEAD OF THE CAPITAL MARKETS GROUP STRONG DEMAND IS COMING FROM ACROSS THE BOARD ALL SECTORS OF THE INVESTOR MARKET FOR INVESTMENTGRADE DEBT UNDERWRITING PEOPLE WHO FILE THEIR TAXES LATE SHOULD TAKE COMFORT THAT WALL STREET'S MILLIONDOLLAR BANKERS ARE SIMILARLY TARDY SECURITIES FIRMS PRICED AN AVERAGE OF 26 DEALS EVERY BUSINESS DAY SO FAR THIS YEAR BUT PRICING ACTIVITY RISES MORE THAN 33 IN THE SECONDTOLAST DAY OF A QUARTER SECURITIES DATA RECORDS SHOW SECURITIES DATA CUTS OFF REPORTING FOR THE FINAL DAY OF THE QUARTER AT 10 AM KIDDER PEABODY & CO MERRILL LYNCH AND CS FIRST BOSTON CORP WERE THE LEADING LATE FILERS THIS TIME EACH OF THEM SERVING AS MANAGER FOR FIVE OR MORE ISSUES PRICED IN ABOUT THE LAST 24 HOURS OF THE RANKINGS PROCESS SOME OF THE LASTMINUTE PRICINGS SFX BROADCASTING INC'S 525 MILLION STOCK AND 80 MILLION NOTE DEAL SHEPHERDED BY KIDDER PEABODY A 1134 MILLION STOCK OFFERING BY CAPITAL GUARANTY CORP AND A 438 MILLION BROOKLYN UNION GAS CO STOCK OFFERING BOTH UNDERWRITTEN BY MERRILL LYNCH AND A 500 MILLION CS FIRST BOSTON UNDERWRITING FOR THE FEDERAL HOME LOAN MORTGAGE CORP NEWISSUE BUSINESS IS BOOMING IN PARTICULAR IN JUNK BOND MUNICIPAL BOND AND NEW STOCK OFFERINGS IN ESSENCE THERE WERE JUST ABOUT AS MANY JUNKBOND UNDERWRITINGS AND INITIAL PUBLIC OFFERINGS IN THE FIRST NINE MONTHS OF 1993 AS THERE WERE IN ALL OF 1992 AUGUST WAS A RECORD MONTH FOR JUNK BONDS WITH ISSUANCE OF 73 BILLION ACCORDING TO SECURITIES DATA FOR THE FIRST NINE MONTHS 539 COMPANIES CAME TO THE MARKET RAISING 40 BILLION THROUGH INITIAL PUBLIC STOCK OFFERINGS THAT WAS EQUAL TO 1992'S TOTAL IPO ISSUANCE IN TRADING SUBSEQUENT TO OFFERINGS THE AVERAGE IPO ISSUE GAINED 287 IN PRICE THROUGH SEPT 30 SECURITIES DATA REPORTS DURING THE THIRD QUARTER ALONE THERE WERE 194 IPOS SLIGHTLY ABOVE THE SECOND QUARTER'S TOTAL BUT NOT A RECORD THE TYPES OF COMPANIES COMING TO MARKET FOR FINANCING WERE INSURERS AND TECHNOLOGY AND ENERGY COMPANIES STAYING ON THE SIDELINES OF THE EQUITY MARKET ARE BIOTECHNOLOGY AND HEALTHCARE FIRMS SAYS LEHMAN'S MR BROOKS INSURANCE COMPANIES ARE RACING TO WALL STREET WITH STOCK OFFERINGS IN ANTICIPATION OF PREMIUM RATE INCREASES 23 INSURERS RAISED 52 BILLION IN THE YEAR TO DATE SECURITIES DATA ATTRIBUTED THAT SURGE TO ANTICIPATION OF PREMIUMRATE HIKES IN THE WAKE OF SEVERAL DISASTERS THE CONTINUED STRENGTH IN CORPORATE AND MUNICIPALBOND ISSUANCE IS TAKING SOME WALL STREETERS BY SURPRISE CONVENTIONAL WISDOM HAD HELD THAT THE REFINANCING BOOM WAS TAILING OFF BUT THE DIP TO 6 IN CORPORATEBOND RATES FUELED ANOTHER ROUND OF REFINANCINGS DURING THE THIRD QUARTER SAYS SALOMON'S MS PALMER IN THE MUNICIPAL MARKET THE TAX INCREASES PROPOSED BY PRESIDENT CLINTON HAVE BEEN THE BEST THING THAT EVER HAPPENED SAYS IRVING WEISER CHIEF EXECUTIVE OF INTERREGIONAL FINANCIAL GROUP INC PARENT COMPANY OF REGIONAL BROKERAGE FIRMS DAIN BOSWORTH AND RAUSCHER PIERCE REFSNES HE NOTES HOWEVER THAT THE VOLUME OF TAXEXEMPT REFUNDINGS MAY BE GOING DOWN MUNICIPALBOND ISSUANCE FOR THE FIRST NINE MONTHS ROSE 28 OVER THE YEAREARLIER PERIOD TO 2185 BILLION ACCORDING TO SECURITIES DATA THIRDQUARTER VOLUME SLIPPED 12 FROM THE SECOND QUARTER'S LEVEL BUT THE VOLUME OF REFUNDING BONDS FELL 19 IN THE GLOBAL MARKETS EUROBOND AND INTERNATIONAL EQUITY ISSUANCE SET A NEW RECORD FOR THE FIRST NINE MONTHS OF 300 BILLION A HEFTY 18 BILLION MORE THAN WAS RAISED IN ALL OF LAST YEAR DOLLARS AND GERMAN MARKS WERE THE CHOSEN CURRENCIES FOR EUROBONDS WITH 34 AND 15 OF THE MARKET RESPECTIVELY AND ISSUANCE OF REAL ESTATE INVESTMENT TRUSTS SO FAR THIS YEAR WAS 39 BILLION MORE THAN FIVE TIMES THE VOLUME IN ALL OF 1992 OF THE TOTAL MARKET MERRILL HAD A 173 SHARE WITH 808 DEALS TOTALING 1419 BILLION GOLDMAN HAD A 126 MARKET SHARE WITH 516 DEALS TOTALING 1036 BILLION AND LEHMAN HAD A 108 MARKET SHARE WITH 522 DEALS TOTALING 889 BILLION MERRILL'S MARKET SHARE ADVANCED ALMOST ONE PERCENTAGE POINT FROM THE YEAREARLIER NINE MONTHS PERHAPS AT THE EXPENSE OF LEHMAN AND BEAR STEARNS TWO FIRMS WHICH SAID EARLIER THIS YEAR THAT THEY WOULD BE ATTEMPTING TO GAIN INVESTMENT BANKING BUSINESS BOTH FIRMS' MARKET SHARE SLID MORE THAN ONE PERCENTAGE POINT CS FIRST BOSTON WAS THE LEADING UNDERWRITER OF ASSETBACKED DEALS MANAGING 40 DEALS TOTALING 145 BILLION KIDDER PEABODY LED IN MORTGAGEBACKED UNDERWRITING WITH 130 DEALS TOTALING 67 BILLION ONE OF THE FEW BREAKOUT SURPRISES MORGAN STANLEY & CO WON A MUCH BIGGER CHUNK OF THE INTERNATIONAL EQUITY AND EUROBOND BUSINESS MORGAN RANKED FOURTH IN THIS BUSINESS FOR THE FIRST NINE MONTHS OF THE YEAR UP FROM THIRTEENTH IN THE FIRST NINE MONTHS OF 1992 9310010043 931001 BOMBARDIER GETS ORDER FOR 6 JETS MONTREAL BOMBARDIER INC SAID IT RECEIVED 127 MILLION IN ORDERS FOR SIX OF ITS CANADAIR REGIONAL JET AIRCRAFT FROM LAUDA AIR LUFTFAHRT AUSTRIA DELIVERIES WILL BEGIN IN EARLY 1994 THE MONTREAL TRANSPORTATIONEQUIPMENT MAKER SAID LAUDA ALSO TOOK OPTIONS FOR SIX ADDITIONAL AIRCRAFT BOMBARDIER NOW HAS 54 FIRM ORDERS FOR THE 50SEAT REGIONAL JET WITH 19 AIRCRAFT IN SERVICE IN EUROPE AND NORTH AMERICA 9310010042 931001 BUSINESS BRIEF SUNCOR INC RESTRUCTURING PLAN TO RESULT IN CHARGE FOR THIRD QUARTER SUNCOR INC SAID IT PLANS A RESTRUCTURING OF ITS PETROLEUM REFINING AND MARKETING OPERATIONS RESULTING IN A CHARGE AGAINST THIRDQUARTER EARNINGS OF 15 MILLION CANADIAN DOLLARS US113 MILLION THE TORONTO PETROLEUM CONCERN WHICH IS 55OWNED BY SUN CO RADNOR PA SAID IT EXPECTS THAT BY THE END OF 1995 THE RESTRUCTURING WILL BOOST ITS PRETAX EARNINGS BY C20 MILLION A YEAR SUNCOR REPORTED 1992 PRETAX PROFIT OF C31 MILLION BEFORE A C360 MILLION ASSET RESTRUCTURING CHARGE ON REVENUE OF C15 BILLION IT POSTED A 1992 NET LOSS OF C228 MILLION SUNCOR PRESIDENT RICHARD GEORGE SAID THE RESTRUCTURING CHARGE IN THE LATEST QUARTER STEMS FROM PLANS TO CLOSE ABOUT 130 SERVICE STATIONS AND TO ELIMINATE 125 TO 150 OF THE COMPANY'S 3000 EMPLOYEES SUNCOR ALSO SAID IT AGREED TO PAY AN UNDISCLOSED CASH SUM TO ACQUIRE 50 OF 92 ONTARIO SERVICE STATIONS OPERATED BY CLOSELY HELD PIONEER PETROLEUMS LTD THE STATIONS WILL BE HELD BY A SUNCOR/PIONEER JOINT VENTURE IT SAID 9310010041 931001 BUSINESS BRIEF ASAHI BREWERIES LTD A BEER VENTURE IS PLANNED WITH US UNIT OF MOLSON ASAHI BREWERIES LTD A LEADING BEER MAKER IN JAPAN SAID IT WILL JOIN WITH MOLSON BREWERIES USA INC TO EXPAND SALES OF ITS ASAHI SUPER DRY BEER IN THE US MARKET ASAHI WILL NEXT YEAR START SHIPPING THE DRY BEER FROM JAPAN FOR CHANNELING THROUGH CANADABASED MOLSON COS' US UNIT AN ASAHI SPOKESMAN SAID THE PLANNED TIEUP WOULD BE ENSURED BY MOLSON'S LINK WITH FOSTER'S BREWING GROUP LTD OF AUSTRALIA ASAHI BREWERIES CURRENTLY OWNS 17 OF FOSTER'S WHICH IN TURN HOLDS 40 OF MOLSON ASAHI BREWERIES SAID THE SHARPTASTING ASAHI SUPER DRY BEER IS GAINING POPULARITY IN THE US SINCE FIRST UNVEILED THERE IN 1987 IN 1992 DRYBEER SALES CAME TO ABOUT 700000 CASES ABOUT FOUR TIMES HIGHER THAN THE SALES IN THE INITIAL YEAR ONE CASE EQUALS ROUGHLY 20 BOTTLES OF BEER 9310010040 931001 BUSINESS BRIEF IDB COMMUNICATIONS GROUP INC TWO MAJOR HOLDERS TO SELL SHARES COMPRISING 51 STAKE IDB COMMUNICATIONS GROUP INC LOS ANGELES SAID TWO OF ITS MAJOR SHAREHOLDERS PLAN TO SELL ABOUT 107 MILLION SHARES OR A 51 STAKE IN THE COMPANY IN A SECONDARY OFFERING THE TWO COMPANIES CAME BY THEIR SHARES AS A RESULT OF IDB MAKING ACQUISITIONS AND PAYING FOR THEM IN STOCK LAST YEAR IDB ACQUIRED WORLD COMMUNICATIONS FROM TELECOLUMBUS USA INC A UNIT OF SWISSBASED MOTORCOLUMBUS AG IN RETURN FOR 62 MILLION SHARES LAST JANUARY IDB AGREED TO ACQUIRE TRT COMMUNICATIONS FROM PACIFIC TELECOM A UNIT OF PACIFICORP IDB SUPPLIES SATELLITE TRANSMISSION AND DISTRIBUTION SERVICES FOR RADIO TELEVISION AND DATAVOICE INDUSTRIES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY IDB SHARES CLOSED AT 51 DOWN 1 9310010039 931001 BUSINESS BRIEF ROWAN COS THIRDQUARTER NET EXPECTED TO HIT AT LEAST 6 MILLION ROWAN COS SAID IT EXPECTS THIRDQUARTER NET INCOME OF 6 MILLION TO 8 MILLION ON REVENUE OF AT LEAST 104 MILLION THIS COMPARES WITH LAST YEAR'S THIRDQUARTER LOSS OF 142 MILLION ON 706 MILLION OF REVENUE ROWAN ATTRIBUTED THE BOOST IN INCOME TO INCREASED DRILLING REVENUE IN THE GULF OF MEXICO THE DRILLING CONTRACTOR ALSO SAID IT EXPECTS POSITIVE FINANCIAL RESULTS FOR THE FOURTH QUARTER AS WELL 9310010038 931001 BUSINESS BRIEF DUPONT TO CUT JOBS AT NYLON DIVISION IN EUROPE BY 1200 GENEVA DUPONT CO SAID IT IS ELIMINATING NEARLY 1200 JOBS IN ITS NYLON DIVISION IN EUROPE AS PART OF A PROGRAM TO REDUCE COSTS AND TRIM THE COMPANY'S WORK FORCE THE DIVISION DUPONT NYLON ANNOUNCED THE ELIMINATION OF 1600 JOBS IN THE US TWO WEEKS AGO THE MOST RECENT LAYOFFS ARE IN THE NYLON OPERATIONS PURCHASED IN JULY FROM IMPERIAL CHEMICAL INDUSTRIES THE LAYOFFS WILL TAKE PLACE MOSTLY IN GERMANY AND THE UK DUPONT SAID IT CURRENTLY HAS 7500 EMPLOYEES IN ITS NYLON BUSINESS IN EUROPE THE COMPANY PREVIOUSLY ANNOUNCED A THIRDQUARTER CHARGE OF ABOUT 375 MILLION OR 56 CENTS A SHARE TO COVER THE EMPLOYEESEPARATION COSTS THE LAYOFF PROGRAM IS IN ADDITION TO AN EARLIER DISCLOSED COSTREDUCTION TARGET OF 500 MILLION FOR DUPONT'S EUROPEAN OPERATIONS DUPONT SAID IT WILL CLOSE THE NYLON TEXTILE FILAMENT PLANT AT PONTYPOOL ENGLAND AT THE END OF THIS YEAR RESULTING IN THE LOSS OF 400 OF THE 1200 JOBS THE COMPANY SAID HOWEVER THAT IT WILL RETAIN AND RESTRUCTURE THE DACRON POLYESTER FILAMENT OPERATION AT PONTYPOOL PART OF THE REDUCTION IN THE NYLON UNIT WORK FORCE IS CAUSED BY COMPETITION FROM OTHER FIBERS NYLON IS USED IN APPAREL TIRES AND CARPETS 9310010037 931001 SUBURBAN FEDERAL SELLS SHARES CINCINNATI SUBURBAN FEDERAL SAVINGS BANK SAID IT SOLD 1580000 SHARES AT 10 EACH RAISING 158 MILLION IN AN INITIAL PUBLIC OFFERING TRIDENT SECURITIES INC WAS THE LEAD UNDERWRITER FOR THE OFFERING 9310010036 931001 BUSINESS BRIEF CHEVRON CORP FINE OF 17 MILLION PROPOSED BY EPA AGAINST SUBSIDIARY THE ENVIRONMENTAL PROTECTION AGENCY SAID IT PROPOSED A 17 MILLION FINE AGAINST A CHEVRON CORP SUBSIDIARY FOR ALLEGED VIOLATION OF THE TOXIC SUBSTANCES CONTROL ACT THE SAN FRANCISCO OIL COMPANY MANUFACTURED AND IMPORTED SIX CHEMICALS WITHOUT GOVERNMENT APPROVAL THE AGENCY SAID CHEVRON SAID THE PROPOSED FINE IS THE LARGEST EVER UNDER THE TOXIC SUBSTANCES ACT THE EPA ACTION ILLUSTRATES A FEDERAL REGULATORY PROCESS RUN AMOK SAID DARRY CALLAHAN CHIEF OPERATING OFFICER OF CHEVRON'S CHEVRON CHEMICAL CO UNIT THE SUBSTANCES INVOLVED IN THIS COMPLAINT ARE COMMON DETERGENTS AND THERE WAS NEVER ANY HAZARD TO THE ENVIRONMENT OR ANY HUMAN BEING OR ANIMAL CHEVRON SAID IT VOLUNTARILY REPORTED THE VIOLATION TO THE EPA AFTER IT BECAME AWARE OF A POTENTIAL PROBLEM UNDER THE EPA'S NEW INTERPRETATION OF ITS REGULATIONS 9310010035 931001 IN THE MODEL FAMILY OF THE '90S DAD BAKES MOM SITS ON THE PORCH BY MICHAEL T MALLOY STAFF REPORTER OF THE WALL STREET JOURNAL MISSISSAUGA ONTARIO REALESTATE DEVELOPERS HAVE LONG USED MODEL HOMES FILLED WITH ELEGANT MODEL FURNITURE AS MARKETING TOOLS NOW A DEVELOPER HERE IS ALSO USING MODEL FAMILIES THIS MAY BE A WHOLE NEW CAREER OPTION FOR ACTORS SAYS MICHAEL KOHUT ONE OF NINE ACTORS AND MODELS HIRED TO PLAY HAPPY HOMEOWNERS AT THE WINDERMERE GATE DEVELOPMENT IN THIS TORONTO SUBURB MR KOHUT'S ACTING EXPERIENCE INCLUDED A FIVEWEEK STINT AS A STANDIN ON THE SET OF A CHARLES BRONSON MOVIE IN HIS LATEST ROLE AS A MODEL HUSBAND HE PUT ON A PINSTRIPED APRON AND MADE CHOCOLATE CHIP COOKIES IN THE KITCHEN OF THE DEVELOPER'S MAIDSTONE MODEL WHICH SELLS FOR ABOUT 168000 TO 182000 IT IS A LITTLE STRANGE BUT IN A COMPETITIVE MARKETPLACE YOU NEED TO TRY NEW THINGS SAYS TONI PETTIT MARKETING AND SALES MANAGER OF TORONTO'S DANIELS GROUP INC SHE AND THE FIRM'S ADVERTISING AGENCY DREAMED UP DANIELS' LIVING THEATER WHILE TRYING TO THINK OF WAYS TO SELL WINDERMERE GATE AS A COMMUNITY INSTEAD OF JUST A BUNCH OF HOUSES A SCENE A YOUNG COUPLE TRIES OUT DANCE STEPS IN THE LIVING ROOM OF THE SLIGHTLY LARGER WINDBORNE THEY LOOK SO REAL THAT SOME HOUSE HUNTERS APOLOGIZE FOR THE INTRUSION I WANT TO GET INTO MAJOR THEATER I WANT TO GET INTO BROADWAY SAYS ALEX BOURGEOIS THE YOUNG HUSBAND WHO IS A FULLTIME DANCE STUDENT ANOTHER SCENE A COUPLE IN STYLISH TRACK SUITS ARE HAVING COFFEE ON THE VERANDAH OF THE 2454SQUAREFOOT SWANSEA WHERE THEIR BICYCLES LEAN AGAINST THE RAILING WE'RE JUST BACK FROM OUR SWIM AT THE COMMUNITY CENTER AND NOW WE'RE PLANNING THE REST OF OUR EXCITING DAY ON THE BICYCLE TRAILS AND JOGGING TRACKS EXPLAINS DANA PETRIC MS PETRIC SEES HER PERFORMANCE AS AN INTERACTIVE COMMERCIAL SHE SAYS IT'S SIMILAR TO HER RECENT WORK IN A GENRE CALLED THEATER OF THE OPPRESSED WHICH ALSO CALLS FOR AUDIENCE PARTICIPATION STILL ANOTHER SCENE MR KOHUT AND TIMOTHY PHILLIPS ARE BAKING IN THE MAIDSTONE THEY'RE HELPED BY FIVEYEAROLD CHARLOTTE SCYTHES THREE APPEARANCES IN THE ITALIAN EDITION OF VOGUE THEIR WIVES PLAY BACKGAMMON ON THE FRONT PORCH WHEN THEY SEE US COOKING THE WOMEN USUALLY ASK IF WE COME WITH THE HOUSE SAYS MR PHILLIPS DUSTING FLOUR FROM HIS HANDS THE HUSBANDS JOKINGLY CALL US TRAITORS 9310010034 931001 BUSINESS BRIEF FORTE PLC PRETAX EARNINGS ARE UP 95 COMPANY CITES COST CUTTING BRITISH HOTEL AND CATERING SERVICES GROUP FORTE PLC SAID ITS PRETAX PROFIT FOR THE SIX MONTHS TO JULY 31 WAS UP 95 TO 37 MILLION 559 MILLION THE COMPANY ATTRIBUTED THE EARNINGS RISE TO COSTCUTTING MEASURES EXPLAINING THAT THE PROFIT IMPROVEMENTS HAVE BEEN ACHIEVED WITH LITTLE ASSISTANCE FROM ECONOMIC CONDITIONS STILL FORTE'S PRETAX PROFIT WAS BELOW PRIOR MARKET EXPECTATIONS FOR A FIGURE OF BETWEEN 40 MILLION AND 45 MILLION THE YEAREARLIER FIGURE OF 19 MILLION HAS BEEN RESTATED IN ACCORDANCE WITH NEW ACCOUNTING STANDARDS THE COMPANY'S OVERALL SALES DECLINED 22 IN THE PERIOD UNDER REVIEW ALTHOUGH SALES FROM CONTINUING OPERATIONS WERE 106 BILLION AGAINST A YEAREARLIER FIGURE OF 9420 MILLION 9310010033 931001 LAW PAUL MOZER PLEADS GUILTY IN CASE TIED TO TREASURY BIDS BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAUL MOZER THE FORMER HEAD OF SALOMON BROTHERS INC'S GOVERNMENTSECURITIES TRADING DESK PLEADED GUILTY TO TWO FELONY COUNTS OF MAKING FALSE STATEMENTS TO US OFFICIALS CONCERNING A TREASURYNOTE AUCTION THE GUILTY PLEA BY MR MOZER WHO WAS AT THE CENTER OF THE SALOMON TREASURYAUCTION SCANDAL HAD BEEN EXPECTED SINCE JULY WHEN A COURT UPHELD A PLEA AGREEMENT FIRST REACHED WITH PROSECUTORS IN JANUARY IN SUBMITTING THE PLEA TO US DISTRICT JUDGE PIERRE N LEVAL IN MANHATTAN THE 38YEAROLD MR MOZER SAID I KNEW AT THE TIME THAT IN FACT WHAT I DID WAS WRONG JUDGE LEVAL SET A TENTATIVE SENTENCING DATE OF DEC 14 AT WHICH TIME THE FORMER TRADER FOR THE SALOMON INC UNIT FACES A MAXIMUM OF 10 YEARS IN PRISON AND 500000 IN FINES THE ACTUAL SENTENCE HOWEVER IS EXPECTED TO BE MUCH LESS THAN THE MAXIMUM BECAUSE MR MOZER HAS COOPERATED WITH THE GOVERNMENT JUDGE LEVAL ASKED PROSECUTORS AND LAWYERS FOR MR MOZER TO SUBMIT BY NOVEMBER THEIR ESTIMATES OF ACTUAL LOSSES CAUSED AS A RESULT OF THE WRONGDOING AMOUNTS WHICH WILL BE A FACTOR IN DETERMINING THE SENTENCE UNDER THE PLEA AGREEMENT THERE IS NO MINIMUM MANDATORY SENTENCE WE ARE SATISFIED WITH THE AGREEMENT SAID MR MOZER'S ATTORNEY STANLEY S ARKIN OF NEW YORK LAW FIRM CHADBOURNE & PARKE PROSECUTORS IN THE CASE COULDN'T BE REACHED TO COMMENT SALOMON BROTHERS LAST YEAR ADMITTED TO VIOLATING GOVERNMENT RULES IN NINE TREASURY AUCTIONS AND PAID 290 MILLION TO SETTLE CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION MR MOZER ALSO IS ACCUSED IN AN SEC CIVIL LAWSUIT OF FALSIFYING RECORDS IN EIGHT TREASURY AUCTIONS FROM 1989 THROUGH 1991 IN JULY JUDGE LEVAL ORDERED PROSECUTORS TO HONOR A DISPUTED PLEA AGREEMENT WITH MR MOZER PROSECUTORS HAD SOUGHT TO BACK OUT OF THE PLEA AGREEMENT REACHED IN JANUARY AFTER MR ARKIN ARGUED THAT THE AGREEMENT BARRED POSSIBLE ANTITRUST CHARGES CLAIMING THE DEAL PROVIDED NO SUCH PROTECTION THE US ATTORNEY'S OFFICE IN NEW YORK RESPONDED BY FILING A BROADER FOURCOUNT INDICTMENT AGAINST MR MOZER JUDGE LEVAL REJECTED THE PROSECUTORS' ARGUMENTS ALTHOUGH HE DIDN'T ADDRESS WHETHER THE PLEA AGREEMENT AFFECTS POSSIBLE ANTITRUST ALLEGATIONS THE GOVERNMENT'S ANTITRUST CASE IN THE TREASURYAUCTION SCANDAL HAS BEEN BEFORE A GRAND JURY IN NEW YORK THE US ATTORNEY'S OFFICE SAID AT THE TIME THAT IT WOULDN'T APPEAL JUDGE LEVAL'S ORDER THAT IT COMPLY WITH THE ORIGINAL PLEA AGREEMENT 9310010032 931001 BENETTON GROUP POSTS 63 INCREASE IN NET FOR FIRST HALF OF 1993 SPECIAL TO THE WALL STREET JOURNAL MILAN ITALIAN SPORTSWEAR CONCERN BENETTON GROUP SPA REGISTERED A 63 INCREASE IN CONSOLIDATED NET INCOME IN THE FIRST HALF OF 1993 TO 986 BILLION LIRE 626 MILLION FROM A YEAR EARLIER THE COMPANY ALSO REPORTED THAT TOTAL DEBT AS OF JUNE 30 ROSE TO 536 BILLION LIRE COMPARED WITH 326 BILLION LIRE A YEAR EARLIER REVENUE ROSE 10 TO 1362 TRILLION LIRE 8647 MILLION FROM 1233 TRILLION LIRE BENETTON SAID EXPORTS TO NONEUROPEAN COMMUNITY COUNTRIES INCREASED 35 IN THE FIRST HALF OF 1993 PARTLY AS A RESULT OF THE DEPRECIATION OF THE LIRE THE CLOTHING COMPANY KNOWN FOR ITS AD CAMPAIGNS DESIGNED FOR SHOCK VALUE ADDED THAT EXPORTS TO A COMBINED NORTH AND SOUTH AMERICAN MARKET INCREASED 20 MEANWHILE EC SALES INCREASED 8 BENETTON SAID SALES OF ITS 012 BRAND FOR CHILDREN IMPROVED THE MOST WITH AN INCREASE OF MORE THAN 20 9310010031 931001 DIAGNOSTEK GETS CONTRACT ALBUQUERQUE NM DIAGNOSTEK INC SAID IT SIGNED AN AGREEMENT TO PROVIDE MAIL PHARMACY AND PHARMACY MANAGEMENT SERVICES TO A SUBSIDIARY OF FIRST FINANCIAL MANAGEMENT CORP ATLANTA TERMS WEREN'T DISCLOSED NUNZIO P DE SANTIS CHAIRMAN OF DIAGNOSTEK SAID THE COMPANY SIGNED A THREEYEAR CONTRACT WITH FIRST FINANCIAL'S FIRST HEALTH STRATEGIES UNIT SALT LAKE CITY WHICH PROVIDES HEALTHCARE MANAGEMENT SERVICES TO BUSINESSES 9310010030 931001 BUSINESS BRIEF NEORX CORP KODAK'S STERLING UNIT SELLS ENTIRE STAKE IN SINGLE TRADE EASTMAN KODAK INC UNIT STERLING WINTHROP INC SAID IT SOLD ITS ENTIRE 29 MILLIONSHARE HOLDING IN NEORX CORP IN A SINGLE TRADE THE TRADE AT 1875 A SHARE REPRESENTS ABOUT 8 OF NEORX'S 372 MILLION SHARES OUTSTANDING SAID ROBERT LITTAUER NEORX'S CHIEF FINANCIAL OFFICER MR LITTAUER NOTED THAT STERLING WHICH IN A SECURITIES AND EXCHANGE COMMISSION FILING SEPT 2 REPORTED 3025000 NEORX SHARES HAS BEEN SELLING THE STOCK SLOWLY OVER THE PAST SIX MONTHS NEORX ROSE 28125 CENTS OR ALMOST 14 TO 23125 IN NATIONAL OVERTHECOUNTER TRADING MR LITTAUER NOTED THAT NEORX'S STOCK WAS UP BEFORE THE STERLING TRADE ON NEWS THAT THE COMPANY HAD RECEIVED A 36 MILLION MILESTONE PAYMENT FROM BOEHRINGER INGELHEIM KG 9310010029 931001 COMMODITIES CORN SOYBEAN PRICES RISE ON FORECASTS FOR COLD IMPROVED OUTLOOK FOR RUSSIAN GRAIN PURCHASES BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US CORN AND SOYBEAN PRICES ROSE AMID FORECASTS FOR FREEZING TEMPERATURES TO END THE MIDWEST GROWING SEASON AND NEWS OF A BREAKTHROUGH ON THE RUSSIAN GRAIN DEBT CRISIS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY JUMPED FOUR CENTS A BUSHEL TO SETTLE AT 24475 A BUSHEL THE NOVEMBER SOYBEAN CONTRACT ROSE 25 CENTS A BUSHEL TO SETTLE AT 62975 A BUSHEL A WEEKEND COLD BLAST WOULD END THE GROWING SEASON AT LEAST A WEEK EARLIER THAN NORMAL IN MANY PARTS OF THE MIDWEST THAT WOULD TRIM THE SIZE OF THE POTENTIAL CORN AND SOYBEAN HARVESTS BECAUSE MANY FIELDS IN IOWA MINNESOTA AND MISSOURI WON'T MATURE FOR SEVERAL WEEKS EXCESSIVE SUMMER RAIN DELAYED PLANTING AND SLOWED GROWTH BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL FIGURES THAT THE POTENTIAL CORN 127 MILLION BUSHELS IF A KILLING FREEZE SWEEPS OVER THE ENTIRE CORN BELT MICHAEL PALMERINO SENIOR AGRICULTURAL METEOROLOGIST AT WEATHER SERVICES CORP BEDFORD MASS SAID HE EXPECTS FREEZING TEMPERATURES AS FAR SOUTH AS NORTHERN MISSOURI ON SATURDAY MORNING FREEZING TEMPERATURES COULD SWEEP OVER ILLINOIS INDIANA AND PARTS OF OHIO BY SUNDAY HE SAID A HARD FREEZE WOULDN'T CAUSE AS MUCH CROP DAMAGE IN THE MAJOR CORNPRODUCING STATES EAST OF THE MISSISSIPPI RIVER THAT AREA ESCAPED MUCH OF THE EXCESSIVE SUMMER RAIN AS A RESULT MANY OF THE EASTERN FIELDS ARE MATURE AND FARMERS THERE ARE PREPARING TO REAP BUMPER CROPS IN THE COMING WEEKS US CROP PRICES ALSO WERE LIFTED BY REPORTS SIGNALING THAT RUSSIA'S LACKLUSTER DEMAND FOR US CROPS MIGHT STRENGTHEN THIS WINTER AN AGRICULTURE DEPARTMENT OFFICIAL CONFIRMED THAT US OFFICIALS HAD SUCCESSFULLY CONCLUDED TALKS WITH RUSSIA ON HOW TO RESCHEDULE THE DEBT THAT RUSSIA AND THE FORMER SOVIET UNION ACCUMULATED BY BUYING US CROPS RUSSIA'S PURCHASES OF US GRAIN HAVE NEARLY EVAPORATED SINCE IT BEGAN FALLING BEHIND IN NOVEMBER 1992 ON PAYMENTS TO INTERNATIONAL BANKERS FOR ROUGHLY 42 BILLION OF USGUARANTEED FOOD LOANS SO FAR THE AGRICULTURE DEPARTMENT HAS PAID INTERNATIONAL BANKERS 11 BILLION TO MAKE GOOD ON LOAN PAYMENTS MISSED BY MOSCOW ONE OF THE ISSUES HANGING OVER THE GRAIN MARKETS HAS BEEN WHEN RUSSIA INTENDS TO REPAY THE US GOVERNMENT FOR COMPENSATING THE BANKS DETAILS OF THE AGREEMENT WEREN'T IMMEDIATELY CLEAR BUT THE US GOVERNMENT HAS APPARENTLY AGREED TO POSTPONE WHEN RUSSIA IS OBLIGATED TO REPAY IT FOR ROUGHLY 600 MILLION OF THE SOUR LOANS IN EXCHANGE RUSSIA HAS AGREED TO PROMPTLY REPAY THE US GOVERNMENT THE REST OF THE 11 BILLION GRAIN TRADERS EXPECT THE DEAL TO MAKE RUSSIA ELIGIBLE TO RECEIVE ADDITIONAL CREDIT GUARANTEES FROM THE US GOVERNMENT HOWEVER IT ISN'T CLEAR HOW SOON THAT MIGHT HAPPEN AMONG OTHER THINGS RUSSIA MUST CONTINUE TO MAKE PROMPT PAYMENTS ON THE USBACKED GRAIN LOANS THAT AREN'T IN DEFAULT SPECULATION ABOUT STRONGER RUSSIAN GRAIN DEMAND ALSO WAS FUELED BY REPORTS THAT WET AND COLD WEATHER IS HAMPERING THE HARVESTS OF WHAT WERE EXPECTED TO BE BUMPER RUSSIAN GRAIN CROPS ACCORDING TO US GRAIN TRADERS SOME RUSSIAN AGRICULTURE OFFICIALS ARE SHAVING THEIR FORECASTS OF THE RUSSIAN CROPS TO 1025 MILLION METRIC TONS FROM THE 115 MILLION METRIC TONS SEEN EARLIER DURING THE GROWING SEASON AS EXPECTED THE 24 DECLINE PROJECTED FOR THE APPROACHING US CORN HARVEST FROM LAST YEAR PROMPTED THE AGRICULTURE DEPARTMENT TO ALLOW US CORN FARMERS IN ITS PRICE SUPPORT PROGRAM TO PUT MORE LAND INTO PRODUCTION DURING THE SPRING OF 1994 THE DEPARTMENT LOWERED TO 5 THE AMOUNT OF LAND THAT CORN FARMERS MUST IDLE IN ORDER TO QUALIFY FOR FEDERAL PAYMENTS CORN FARMERS HAD TO SET ASIDE 10 TO BE ELIGIBLE LAST SPRING FARMERS GROWING BARLEY OATS AND GRAIN SORGHUM WON'T BE REQUIRED TO IDLE ANY LAND TO BE IN THE FEDERAL PROGRAM LIVESTOCK TRADERS MEANWHILE EXPECT HOG PRICES TO JUMP TODAY IN THE WAKE OF A QUARTERLY GOVERNMENT SURVEY THAT DETECTED A BIGGERTHANEXPECTED DECLINE IN THE US HOG AND PIG HERD AFTER THE CLOSE OF TRADING YESTERDAY THE AGRICULTURE DEPARTMENT PEGGED THE US HERD IN EARLY SEPTEMBER AT 59 MILLION DOWN 4 FROM THE 1992 FIGURE CHARLES LEVITT SENIOR MEAT ANALYST AT ALARON TRADING CORP CHICAGO SAID THE SURVEY INDICATES THAT THE RAINRELATED CROP DISASTER IN THE WESTERN CORN BELT MADE HOG PRODUCERS THERE MORE CONSERVATIVE MANY HOG FARMERS IN SODDEN STATES SUCH AS IOWA AND MINNESOTA WON'T HARVEST MUCH OF THE CORN CROP THAT THEY INTENDED TO FEED TO THEIR SWINE HERDS OVER THE WINTER THE PROSPECT OF HAVING TO BUY CORN PROMPTED HOG PRODUCERS TO TRIM THEIR PLANS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES EDGED HIGHER AS TRADERS TRIED TO SETTLE IN FOLLOWING THE RAUCOUS TRADING ACTION THAT ROCKED THE MARKETS WEDNESDAY WHEN THE OPEC MEETING DREW TO A CLOSE CRUDE FOR NOVEMBER DELIVERY FINISHED AT 1879 A BARREL UP 12 CENTS FROM WEDNESDAY'S SETTLEMENT PRICE MARKET PLAYERS SEE PRICES MOVING IN A NARROW RANGE FOR THE SHORT TERM AS ANALYSTS TRY TO DETERMINE WHETHER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS LIVING UP TO THE OUTLINES OF THE AGREEMENT IT STRUCK IN GENEVA WEDNESDAY OPEC SURPRISED FUTURES MARKETS BY DECIDING TO RESTRICT OUTPUT TO 245 MILLION BARRELS A DAY FOR THE FIRST QUARTER OF 1994 AS WELL AS FOR THE FOURTH QUARTER OF THIS YEAR RATHER THAN JUST THROUGH THE END OF THE YEAR TRADERS SAID TRADERS SAID THEY ALSO SAW AS BULLISH THE LATEST US ENERGY DEPARTMENT FIGURES FOR CRUDE OIL DRAWDOWNS THE ENERGY DEPARTMENT REPORT RELEASED WEDNESDAY CORROBORATED INDUSTRY STATISTICS RELEASED TUESDAY THE ENERGY DEPARTMENT FIGURES SHOWED CRUDE OIL STOCKS DECLINING BY 96 MILLION BARRELS LAST WEEK INDUSTRY STATISTICS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE HAD SHOWN AN EVEN STEEPER DRAWDOWN 9310010028 931001 BUSINESS BRIEF ASHLAND COAL INC FIRM SAYS TAXRELATED GAIN AIDED THIRDQUARTER NET ASHLAND COAL INC SAID A 50 MILLION REDUCTION IN ITS FEDERAL INCOMETAX EXPENSES AIDED THIRDQUARTER EARNINGS THE CHANGE IS A RESULT OF A DEDUCTION FOR THE AMORTIZATION OF GOODWILL FROM THE 1992 AQUISITION OF DALTEX COAL CORP IN THE YEAREARLIER PERIOD ASHLAND COAL EARNED 796 MILLION OR 43 CENTS A SHARE BUT HUNTINGTON WVABASED ASHLAND COAL SAID THE ONGOING UNITED MINE WORKERS STRIKE AND A 6 MILLION CHARGE FOR PAYMENTS FOR LEASED MINES DAMPED EARNINGS FOR THE QUARTER ASHLAND COAL'S LOWER TAX EXPENSES GAVE ITS 38OWNER ASHLAND OIL INC ASHLAND KY A ONETIME GAIN OF 18 MILLION OR 28 CENTS A SHARE FOR ITS FOURTH QUARTER ENDED YESTERDAY EXCLUDING THE GAIN ASHLAND OIL SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF 65 CEARE COMPARED WITH A LOSS OF 103 MILLION OR 175 A SHARE A YEAR EARLIER 9310010027 931001 SALE OF KAISER SHARES IS APPROVED HOUSTON KAISER ALUMINUM CORP SAID A MAJORITY OF SHAREHOLDERS AT A SPECIAL MEETING APPROVED THE JUNE 30 SALE OF ABOUT 21 MILLION DEPOSITARY SHARES TO THE MAXXAM GROUP UNIT OF MAXXAM INC FOR ABOUT 152 MILLION 9310010026 931001 WHITE HOUSE PANEL RULES AGAINST RAISING AUTO FUEL STANDARDS WASHINGTON AN EXECUTIVEBRANCH COMMISSION PREPARING RECOMMENDATIONS TO REDUCE GREENHOUSEGAS EMISSIONS HAS RULED OUT SEEKING HIGHER AUTO FUELEFFICIENCY STANDARDS THE COMMISSION WHICH IS CHAIRED BY KATHLEEN MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY IS SET TO ISSUE ITS FINDINGS SOMETIME THIS MONTH THE PANEL WAS ESTABLISHED BY PRESIDENT CLINTON LAST APRIL TO FIND WAYS TO REDUCE US EMISSIONS TO 1990 LEVELS BY THE YEAR 2000 EFFORTS TO CURB EMISSIONS THAT CONTRIBUTE TO GLOBAL WARMING SUFFERED A SETBACK WHEN CONGRESS REJECTED THE CLINTON ADMINISTRATION'S PROPOSED TAX BASED ON HEAT CONTENT AS MEASURED IN BRITISH THERMAL UNITS THE BTU TAX WAS PROJECTED TO BE A SIGNIFICANT CONTRIBUTOR TOWARD REDUCTION OF GREENHOUSE GASES BUT THE TRANSPORTATIONFUELS TAX THAT CONGRESS ADOPTED IN ITS PLACE ISN'T EXPECTED TO ACHIEVE MAJOR GAINS THE ENVIRONMENTAL PROTECTION AGENCY HAD URGED THE COMMISSION TO RECOMMEND INCREASING THE CORPORATE AVERAGE FUEL EFFICIENCY STANDARDS WHICH REQUIRE AUTOMAKERS TO ACHIEVE AN AVERAGE FUEL EFFICIENCY OF 275 MILES PER GALLON FOR NEW CARS IN A BOOK ISSUED DURING THE 1992 PRESIDENTIAL CAMPAIGN PRESIDENT CLINTON PROPOSED INCREASING THE SOCALLED CAFE STANDARDS TO 40 MILES PER GALLON BY THE YEAR 2000 BUT MEMBERS OF THE PANEL REJECTED INCREASING THE STANDARD BECAUSE OF A GENERAL BELIEF THAT IT'S VERY DIVISIVE POLITICALLY ACCORDING TO AN ENERGY DEPARTMENT OFFICIAL 9310010025 931001 MARKETING & MEDIA KOCH SHELVES PLANS TO PURCHASE MGM FROM CREDIT LYONNAIS LOS ANGELES COMPUTER EXECUTIVE WILLIAM I KOCH HAS TOLD CREDIT LYONNAIS SA THAT HE'S BACKING OFF HIS PLANS TO PURSUE AN ACQUISITION OF ITS METROGOLDWYNMAYER UNIT MR KOCH SAID THIS WEEK THAT HE INTENDED TO MAKE AN OFFER FOR THE MOVIE STUDIO HE HAD HIRED JEFF BERG CHAIRMAN OF TALENT AGENCY INTERNATIONAL CREATIVE MANAGEMENT TO REPRESENT HIM THE ANNOUNCEMENT STIRRED A HORNET'S NEST IN HOLLYWOOD EVEN THOUGH THE BANK BY LAW MUST SELL THE STUDIO BY 1997 MGM AND ITS NEW CHAIRMAN FRANK MANCUSO WERE ANGRY BECAUSE THEY FELT THE OFFER WAS AN EFFORT TO DESTABILIZE THE STUDIO WHICH IS STRUGGLING TO GET BACK ON ITS FEET AND IMPROVE ITS VALUE CREATIVE ARTISTS AGENCY AND ITS CHAIRMAN MICHAEL OVITZ AS ADVISERS TO THE BANK WERE ANGRY FOR THE SAME REASON BOTH WERE STILL SMARTING FROM MEDIA COVERAGE GENERATED BY ANOTHER PURPORTED INDICATION OF INTEREST IN MGM BY PEOPLE ASSOCIATED WITH CLOSELY HELD COMMODITIES GIANT CARGILL INC SOME OBSERVERS SAID THEY BELIEVED THAT A DISINFORMATION CAMPAIGN WAS BEING WAGED AGAINST THE STUDIO PERHAPS TO DRIVE THE EVENTUAL PRICE DOWN OR PERHAPS TO TWEAK MR OVITZ AS THE TWO TOP AGENTS IN TOWN MESSRS BERG AND OVITZ ARE RIVALS AND MR BERG EARLIER HAD SPOKEN OUT AGAINST CAA'S INVOLVEMENT WITH THE STUDIO SAYING IT RAISED CONFLICTOFINTEREST QUESTIONS BUT BOTH AGENCIES BENEFIT FROM STEPPEDUP MOVIEMAKING AT MGM WHICH IS MR MANCUSO'S EXPRESSED GOAL INDEED A KEY EARLY MGM PROJECT A FILM WITH MICHELLE PFEIFFER AND RICHARD GERE CALLED HIGGINS AND BEECH WAS PUT TOGETHER BY ICM FRANCOIS GILLE DIRECTOR GENERAL OF THE BANK WROTE A LETTER TO MESSRS KOCH AND BERG SAYING THE STUDIO WASN'T FOR SALE ALTHOUGH SOME PEOPLE CLOSE TO MR KOCH HAD SAID HE HAD INTENDED TO DEAL DIRECTLY WITH THE FRENCH GOVERNMENT NOT THE BANK MR KOCH WROTE BACK YESTERDAY SAYING THAT HE PLANNED TO EXPLORE OTHER OPPORTUNITIES IN HOLLYWOOD AND THAT HE AND MR BERG WOULD BE WILLING TO OPEN DISCUSSIONS WHEN THE BANK WAS READY TO SELL 9310010024 931001 WHAT'S NEWS BUSINESS AND FINANCE CLINTON PLANS TO PROPOSE TAX INCENTIVES AND OTHER MEASURES IN AN EFFORT TO STIMULATE THE DOMESTIC OIL AND NATURAL GAS INDUSTRIES THE PROPOSALS ACCORDING TO A PARTIAL DRAFT INCLUDE EXPANDING TAX BREAKS AIMED AT ENCOURAGING GAS AND OIL EXPLORATION INCREASING RESEARCH AND DEVELOPMENT FUNDS AND REDUCING REGULATORY BARRIERS AT THE STATE AND FEDERAL LEVELS WMX TECHNOLOGIES WROTE DOWN THE VALUE OF INCINERATORS AND OTHER ASSETS BY 550 MILLION AND PLANS TO CUT 1200 JOBS THE COMPANY SAID BIG INVESTMENTS IN THE ENVIRONMENTAL BUSINESS HAVE GROWN INCREASINGLY RISKY BECAUSE OF SHIFTING FEDERAL POLICIES MARTIN MARIETTA PLANS TO CUT 2000 JOBS AND CLOSE 10 PLANTS BY THE END OF 1994 COMPLETING THE CONSOLIDATION OF ITS OPERATIONS WITH THOSE OF THE GE AEROSPACE UNIT IT BOUGHT LAST YEAR SALES OF NEW STOCKS AND BONDS TOTALED A RECORD 82055 BILLION IN THE FIRST NINE MONTHS OF 1993 21 MORE THAN IN THE SAME PERIOD A YEAR AGO MERRILL LYNCH GOLDMAN SACHS AND LEHMAN BROTHERS RAISED 3344 BILLION A 40 CHUNK OF THE INDUSTRY TOTAL USAIR PLANS TO CUT 2500 JOBS OR 54 OF ITS WORK FORCE BY MID1994 THE USAIR GROUP UNIT SAID IT EXPECTS TO REPORT A LOSS OF 180 MILLION FOR THE THIRD QUARTER AND PLANS TO REDUCE OPERATING COSTS BY 200 MILLION NEXT YEAR DISPOSABLE PERONAL INCOME ROSE 12 IN AUGUST AS FARMERS AND LANDLORDS RECOVERED FROM MIDWEST FLOODING AND THE DROUGHT IN THE SOUTHEAST GM'S STOCK FELL 48 IN HEAVY VOLUME AMID CONCERNS THE COMPANY WAS LOSING CONTROL OF ITS LABOR NEGOTIATIONS AND MAY BE HEADED TOWARD ANOTHER EXPENSIVE AGREEMENT WITH THE UAW WARREN BUFFETT'S BERKSHIRE HATHAWAY AGREED TO BUY DEXTER SHOE FOR ABOUT 420 MILLION IN STOCK TWO AMERICA WEST AIRLINES DIRECTORS RESIGNED ONE UNDER PROTEST THE MOVE COULD HURT THE PRITZKER FAMILY'S EFFORT TO GAIN CONTROL OF THE CARRIER A UNITED AIRLINES UNION COALITION AT THE UAL CARRIER HAS BEEN DISCUSSING AT LEAST 1 BILLION MORE IN LABORCOST SAVINGS THAN PREVIOUSLY DISCLOSED EXSALOMON OFFICIAL PAUL MOZER PLEADED GUILTY TO TWO FELONY COUNTS OF MAKING FALSE STATEMENTS TO US OFFICIALS ABOUT A TREASURYNOTE AUCTION NUTRI/SYSTEM DIET CENTER AND PHYSICIANS WEIGHT LOSS CENTERS SETTLED FEDERAL FALSEADVERTISING CHARGES AMERICAN EXPRESS WON THE HOTLY CONTESTED TRAVELSERVICES CONTRACT FOR THE FEDERAL GOVERNMENT STEALING THE BUSINESS FROM RIVAL CITICORP'S DINERS CLUB INDUSTRY OFFICIALS SAID IBM IS HAVING TROUBLE FILLING ORDERS FOR SOME PERSONAL COMPUTERS WITH ITS PC SALES UP 35 FROM YEARAGO LEVELS 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 BONDS LEHMAN BROTHERS TREASURY INDEX 560598 OFF 1687 COMMODITIES OIL 1879 A BARREL UP 12 CENTS DOW JONES FUTURES INDEX 12539 UP 024 SPOT INDEX 11872 UP 010 DOLLAR 10618 YEN UP 113 16330 MARKS UP 00194 9310010023 931001 TAIWAN'S UMC TO LAUNCH CHIP RIVAL TO INTEL AFTER MONTHS OF DELAY INTRODUCTION EXPECTED BY THE END OF YEAR BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN UNITED MICROELECTRONICS CORP LONG A DARLING OF FOREIGN INVESTORS IN TAIWAN HAS RECEIVED EVEN MORE ATTENTION THIS WEEK BECAUSE OF REPORTS THAT IT IS ON THE VERGE OF LAUNCHING A MICROPROCESSOR THAT WILL COMPETE AGAINST INTEL CORP'S 486 CLASS OF CHIPS UMC'S MUCH HERALDED DEVELOPMENT EFFORT HAS BEEN PLAGUED BY MONTHS OF DELAYS BUT NOW IT FINALLY MAY BE REACHING FRUITION ON WEDNESDAY A COMPANY EXECUTIVE TOLD THE REUTER NEWS AGENCY THAT THE CHIP WILL BE LAUNCHED BY THE END OF THE YEAR WHILE THE COMPANY HAS MADE SIMILAR STATEMENTS SEVERAL TIMES MANY INDUSTRY ANALYSTS THIS TIME BELIEVE THE MICROPROCESSOR IS CLOSE TO MARKET IN AUGUST UMC OFFERED BROKERS A DEMONSTRATION OF A COMPUTER POWERED BY THE MICROPROCESSOR ALSO KNOWN AS A CPU ANALYSTS SAY THAT UMC'S MICROPROCESSOR REMAINS A MYSTERY A COMPETITOR SAYS THAT THE LOCAL PERSONALCOMPUTER INDUSTRY WHICH WILL BE A KEY MARKET FOR THE DEVICE HASN'T EVEN SEEN OR TESTED THE CHIP YET IN ADDITION THE EFFICIENCY OF UMC'S PRODUCTION PROCESS IS UNKNOWN THAT LEAVES ANALYSTS WONDERING WHETHER THE COMPANY CAN ACHIEVE THE ECONOMIES OF SCALE THAT WOULD ALLOW IT TO TURN OUT THE CHIP IN BULK AND AT THE LOW PRICES NEEDED TO TAKE ON INTEL MEANWHILE MANY ANALYSTS EXPECT A COURT CHALLENGE WHEN THE CHIP FINALLY HITS THE MARKET THE WORLD'S LARGEST SEMICONDUCTOR MAKER INTEL HAS BUILT A NEAR MONOPOLY IN THE MICROPROCESSOR MARKET CHALLENGED ONLY BY ADVANCED MICRO DEVICES INC AND CYRIX CORP OF THE US BOTH COMPANIES WHICH OFFER CLONES OF INTEL MICROPROCESSORS FACE CONSTANT EXPENSIVE LEGAL BATTLES WITH INTEL OVER ALLEGED PATENT INFRINGEMENT A SPOKESMAN AT INTEL'S SANTA CLARA CALIF HEADQUARTERS DISMISSED THE REPORTS ABOUT UMC'S ENTRY INTO THE 486 CHIP MARKET AS INDUSTRY RUMORS INDICATING THAT INTEL IS PREPARED TO FIGHT FOR ITS 486 CHIP PATENTS THERE'S A LARGE AMOUNT OF INTELLECTUAL PROPERTY SURROUNDING OUR 486 ARCHITECTURE AND WE'RE WILLING TO DO WHATEVER WE NEED TO TO DEFEND OUR PROPERTY INTEL'S SPOKESMAN SAID FOR ALL THESE REASONS STOCK ANALYSTS SUGGEST THAT UMC'S PREPARATIONS TO LAUNCH ITS MICROPROCESSOR SHOULD BE REGARDED AT BEST AS A SECONDARY REASON TO BUY ITS SHARES IT'S A TERRIFIC COMPANY AND WELLMANAGED BUT I WOULD NOT BUY IT FOR ITS CPU BUSINESS SAYS RICHARD WERTHEIMER AN ANALYST WITH BARING SECURITIES TAIWAN LTD BUT THE COMPANY'S BASIC STRATEGY I LIKE A LOT TWO YEARS AGO UMC WAS MIRED IN A SLUMP BROUGHT ON BY A DOWNTURN IN THE GLOBAL COMPUTER INDUSTRY AND STIFF COMPETITION FROM TAIWAN'S OTHER SEMICONDUCTOR MAKERS WHICH ARE UNLISTED BUT THE COMPANY WHICH WAS FOUNDED IN 1980 WITH GOVERNMENT BACKING HAS SINCE BROKEN AWAY FROM THE PACK AND BENEFITED FROM STRONG DEMAND AT HOME AND ABROAD DIVERSIFICATION INTO NEW PRODUCT AREAS INCLUDING SOPHISTICATED LOGIC AND MEMORY DEVICES AND A MAJOR CAPITALINVESTMENT PROGRAM HAVE BROUGHT EXPLOSIVE EARNINGS GROWTH IN 1992 THE COMPANY POSTED PRETAX PROFIT OF NT123 BILLION UP MORE THAN 100 FROM 1991 THIS YEAR HG ASIA PROJECTS THAT PRETAX PROFIT WILL GROW TO NT19 BILLION OTHER BROKERS' FORECASTS ARE SLIGHTLY LOWER BROKERS SAY UMC CAN'T MAINTAIN SUCH RAPID PROFIT GROWTH THROUGH 1994 PARTICULARLY WITH KOREAN SEMICONDUCTOR MAKERS BRINGING NEW PRODUCTS TO MARKET AT LOW PRICES BUT THEY THINK THE COMPANY'S PRODUCT MIX AND CONTINUING INNOVATIONS SHOULD HELP TIDE IT OVER ITS STRONGEST YEARS ARE PROBABLY PASSING RIGHT NOW SAYS MR WERTHEIMER OF BARING BUT UMC HAS SOME NEW PRODUCTS THAT MAYBE A YEAR FROM NOW WILL REJUVENATE EARNINGS ALONG WITH THE MICROPROCESSOR UMC IS INVESTING HEAVILY IN AN EFFORT TO PRODUCE TAIWAN'S FIRST LIQUID CRYSTAL DISPLAYS WHICH THE ISLAND'S ELECTRONICS INDUSTRY CURRENTLY IMPORTS FROM JAPAN ALTHOUGH THAT PROJECT IS STILL IN THE PILOT STAGE THE COMPANY SAYS IT COULD BE MARKETING SMALL QUANTITIES OF THE SCREENS BY YEAR END AT THE SAME TIME UMC IS PREPARING TO BEGIN CONSTRUCTION OF ITS THIRD CHIP FACTORY A PROGRAM THAT COULD COST AS MUCH AS NT15 BILLION ANALYSTS EXPECT THE COMPANY EVENTUALLY TO LOOK ABROAD TO RAISE FUNDS FOR THE FIRST TIME EITHER IN THE FORM OF CONVERTIBLE BONDS OR GLOBAL DEPOSITARY RECEIPTS THAT WOULD OFFER FOREIGN INVESTORS AN ALTERNATIVE TO BUYING THE SHARES IN TAIWAN 9310010022 931001 FLYING TOASTERS SINGE A SOFTWARE MAKER OVER ITS COPYRIGHT BERKELEY SYSTEMS SUES DELRINA ALLEGING AN INFRINGEMENT CONCERNING A SCREEN SAVER BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL FLYING TOASTERS ON COMPUTER SCREENS ARE UNLIKELY BESTSELLERS BUT THEY'RE NO LAUGHING MATTER TO THE COMPANY THAT CREATED THEM IT IS SUING AN IMITATOR IN A CASE THAT RAISES NEW COPYRIGHT ISSUES IN THE SOFTWARE INDUSTRY BERKELEY SYSTEMS INC WHICH IS CLOSELY HELD AND BASED IN BERKELEY CALIF FILED SUIT THIS WEEK IN FEDERAL COURT IN SAN FRANCISCO CHARGING THAT DELRINA CORP A TORONTO SOFTWARE PRODUCER VIOLATED ITS COPYRIGHT BY SELLING A COMPETING SERIES OF IMAGES BY CARTOONIST BERKELEY BREATHED IN DELRINA'S VERSION OPUS A WELLKNOWN PENGUIN THAT ALSO APPEARS IN MR BREATHED'S NEWSPAPER COMICS SHOOTS DOWN FLYING TOASTERS THAT LOOK LIKE THE DEFINING IMAGES IN BERKELEY'S BESTSELLING AFTER DARK SOFTWARE DELRINA'S TOASTERS RETURN THE FIRE WITH BURNED TOAST DELRINA WHICH ALSO MARKETS A POPULAR CALENDAR PROGRAM BASED ON THE FAR SIDE CARTOON STRIP DEFENDS ITS PRODUCT AS PARODY COMPARABLE TO A HUMOROUS MAGAZINE DELRINA'S PRODUCT IS CALLED OPUS 'N BILL SCREEN SAVER BOTH SOFTWARE PRODUCTS WHICH DISPLAY VARIOUS PICTURES ON SCREENS WHILE PEOPLE AREN'T USING THEIR COMPUTERS ARE CALLED SCREEN SAVERS BECAUSE THEY CAN PREVENT DISPLAYED WORDS FROM BEING ETCHED PERMANENTLY ONTO OLDER COMPUTER SCREENS WITH NEWER SCREENS HOWEVER THIS ISN'T AS MUCH OF A PROBLEM AND SCREEN SAVERS ARE NOW USED MORE AS TOUCHES OF PERSONAL WHIMSY SCREEN SAVERS COST WELL UNDER 50 IN STORES AND ARE POPULAR CHRISTMAS PRESENTS IN THE COMPUTER CROWD THE SUIT RAISES QUESTIONS ABOUT FIRST AMENDMENT RIGHTS WHICH INVOLVE FREEDOM OF THE PRESS IN MEDIA OTHER THAN PAPER SAM WHITMORE EDITORIAL DIRECTOR OF PC WEEK A WEEKLY TRADE NEWSPAPER SAID THIS IS GOING TO BE ONE OF THOSE CASES THAT DECIDES WHETHER THE FIRST AMENDMENT WILL MAP DIRECTLY TO SOFTWARE HANK GUTMAN A COPYRIGHT LAWYER WHO HAS REPRESENTED LOTUS DEVELOPMENT CORP IN SOFTWARE COPYRIGHT SUITS SAID NEITHER COPYRIGHT LAW NOR THE FIRST AMENDMENT PROVIDES A SEPARATE SET OF RULES APPLICABLE TO COMPUTER SOFTWARE IF THIS WOULD QUALIFY AS PARODY IN SOME OTHER MEDIUM IT SHOULD QUALIFY IN THE COMPUTER THE QUESTION FOR THE COURT IS WHETHER THE PARODY IS A FAIR USE OR WHETHER OBSERVERS MIGHT WRONGLY THINK IT WAS A PRODUCT DEVELOPED BY BERKELEY SYSTEMS HE SAID THE CARTOONIST MR BREATHED WHO LIVES IN THE SEATTLE AREA SAID I'M GLAD THIS IS GOING TO BE HASHED OUT NOW AS HUMOR SNEAKS ONTO THE COMPUTER SCREEN WE NEED TO KNOW WHAT ARE THE PARAMETERS THE SCREEN SAVER MARKET IS AN ODD NICHE OF THE SOFTWARE BUSINESS THAT BERKELEY SYSTEMS HAS DOMINATED SINCE IT INTRODUCED AFTER DARK IN 1989 IN 1990 IT ADDED THE FLYING TOASTER SECTION TO AFTER DARK IN THE LANGUAGE OF THE LAWSUIT THE TOASTERS ARE FANCIFUL AND HIGHLY EXPRESSIVE ANGELWINGED BREAD TOASTERS WESLEY BOYD PRESIDENT AND CHIEF EXECUTIVE OF BERKELEY SAYS THE COMPANY HAD REVENUE OF 20 MILLION LAST YEAR HE SAID HIS COMPANY HAS NEVER BEEN INVOLVED IN A LAWSUIT BEFORE WE DON'T SEE THIS AS A FIRST AMENDMENT ISSUE WE FEEL THEY'RE LEVERAGING OFF OUR BRAND HE NOTES THAT DELRINA'S PRODUCT PROMOTION MATERIALS PROMOTE THE FLYING TOASTER PARODY HEAVILY THEY HAVE A HUGE POSTER OF OPUS HOLDING A DEAD TOASTER AND SAYING THEM'S GOOD EATING' HE SAYS INDIGNANTLY 9310010021 931001 INTERNATIONAL ROBERTSON & BAXTER AND GRAND MET UNIT BID FOR NORTH BRITISH SPECIAL TO THE WALL STREET JOURNAL LONDON A UNIT OF GRAND METROPOLITAN PLC AND CLOSELY HELD SCOTCH WHISKY MAKER ROBERTSON & BAXTER LTD LAUNCHED A FRIENDLY TAKEOVER OFFER FOR THE REMAINDER OF NORTH BRITISH DISTILLERY CO THE BID VALUES ALL OF NORTH BRITISH AT 84 MILLION 1269 MILLION NORTH BRITISH IS A CLOSELY HELD EDINBURGHBASED COMPANY THAT DISTILS AND WAREHOUSES HIGHQUALITY GRAIN SCOTCH WHISKY FOR OTHER COMPANIES' BLENDED BRANDS LOTHIAN DISTILLERS LTD WHICH IS JOINTLY OWNED BY GRAND MET'S INTERNATIONAL DISTILLERS & VINTNERS LTD AND ROBERTSON & BAXTER WILL OFFER NINE POUNDS 1360 CASH WITHOUT THE RIGHT TO A SPECIAL DIVIDEND OR SIX POUNDS IN CASH WITH THE DIVIDEND OR THE EQUIVALENT OF SIX POUNDS A SHARE OF LOAN NOTES PAYING 7 AND THE DIVIDEND NORTH BRITISH PLANS TO PAY A SPECIAL DIVIDEND OF THREE POUNDS A SHARE LOTHIAN CURRENTLY HOLDS 38 OF NORTH BRITISH GRAND MET SAID THE BOARD OF NORTH BRITISH IS UNANIMOUSLY RECOMMENDING ACCEPTANCE OF THE OFFER ALREADY ROBERTSON & BAXTER USES NORTH BRITISH SCOTCH WHISKY IN BLENDS FOR BRANDS SUCH AS CUTTY SARK AND FAMOUS GROUSE INTERNATIONAL DISTILLERS USES THEM IN J&B RARE SCOTCH WHISKY NORTH BRITISH HAD 1992 REVENUE OF 313 MILLION AND PRETAX PROFIT OF 98 MILLION 9310010020 931001 WHAT'S NEWS WORLDWIDE AS MANY AS 16000 PEOPLE DIED AS A MAJOR EARTHQUAKE HIT SOUTHERN INDIA THE PREDAWN QUAKE LEVELED ENTIRE VILLAGES BURYING SLEEPING FAMILIES INSIDE THEIR MUD BRICK AND THATCH HOUSES AUTHORITIES FEARED THE DEATH TOLL COULD SOAR EVEN HIGHER IN INDIA'S WORST QUAKE IN A HALF CENTURY STATERUN INDIAN TELEVISION QUOTED OFFICIALS IN MAHARASHTRA THE HARDESTHIT STATE AS SAYING THAT UP TO 16000 PEOPLE HAD BEEN KILLED AND AN EQUAL NUMBER INJURED THE QUAKE MEASURING AT LEAST 6 ON THE RICHTER SCALE WAS FELT 400 MILES FROM THE EPICENTER AND CAUSED A WIDE SWATH OF DAMAGE RELIEF WORKERS HAD TROUBLE REACHING SOME OF THE STRICKEN VILLAGES IN THE SUGAR CANE AND COTTONGROWING REGION BECAUSE RECENT MONSOON RAINS HAD WIPED OUT MANY ROADS AND BRIDGES YELTSIN SIGNED AN ACCORD WITH PARLIAMENT TO PARTIALLY LIFT A BLOCKADE REPRESENTATIVES OF THE RUSSIAN PRESIDENT TRYING TO END A 10DAY POLITICAL CRISIS IN MOSCOW AGREED TO RESTORE POWER AND TELEPHONES TO THE BARRICADED PARLIAMENT BUILDING IN RETURN THE HARDLINE DEPUTIES SAID THEIR VOLUNTEER GUARDS INSIDE PARLIAMENT WOULD SURRENDER WEAPONS TO STOCKPILES IN THE BUILDING EARLIER YELTSIN SAID HE WOULD PERMIT THE HEAD OF THE RUSSIAN ORTHODOX CHURCH TO MEDIATE NEGOTIATIONS WITH THE LEGISLATORS RUSSIA WAS GIVEN MORE TIME TO PAY OFF 11 BILLION IN DEBTS TO THE US AND SECURED NEW AID UNDER A MEASURE THAT CLINTON SIGNED LAST NIGHT TOP ATF OFFICIALS DELIBERATELY LIED ABOUT THE RAID OF A WACO TEXAS CULT COMPOUND THAT COST FOUR FEDERAL AGENTS THEIR LIVES THE TREASURY DEPARTMENT CONCLUDED AS A RESULT TREASURY SECRETARY BENTSEN REMOVED FIVE OFFICIALS FROM THEIR POSTS AT THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS PENDING DISCIPLINARY ACTION THE HOUSE STRIPPED THE PENTAGON BUDGET OF MONEY FOR A SPECIAL GLOBAL ACCOUNT TO FUND FUTURE US PEACEKEEPING MISSIONS THE WHITE HOUSE HAD SOUGHT 448 MILLION FOR THE INITIATIVE THE AMA PROMISED AN ALLOUT DRIVE TO DRASTICALLY REVISE CLINTON'S HEALTH CARE PLAN AT A TWODAY CONFERENCE THE LOBBYING GROUP FOR DOCTORS SAID IT OPPOSED MANY DETAILS OF THE PLAN INCLUDING INSURANCE PREMIUM CEILINGS AND REDUCTIONS IN REIMBURSEMENTS UNDER THE EXISTING MEDICARE HEALTH PLAN FOR THE ELDERLY BOSNIA'S SERB LEADER RAISED THE STAKES IN THE COUNTRY'S CIVIL WAR SAYING HE WOULD PRESS FOR WITHDRAWAL OF AN OFFER TO GIVE MUSLIMS 20 OF THE LAND HIS TROOPS HOLD ON WEDNESDAY BOSNIA'S MUSLIMLED PARLIAMENT EFFECTIVELY REJECTED AN INTERNATIONAL PEACE PLAN BY SAYING TERRITORY SEIZED BY FORCE MUST BE RETURNED GEN COLIN POWELL STEPPED DOWN FROM HIS POST AS CHAIRMAN OF THE JOINT CHIEFS OF STAFF DURING AN EMOTIONAL FAREWELL CEREMONY AT FORT MYER VA CLINTON AWARDED POWELL THE PRESIDENTIAL MEDAL OF FREEDOM REGULATORY CHANGES WERE ORDERED BY CLINTON IN AN EFFORT TO REDUCE INFLUENCEPEDDLING BY REVAMPING THE WAY FEDERAL RULES ARE ISSUED THE EXECUTIVE ORDER WOULD REVERSE SEVERAL PRACTICES OF FORMER VICE PRESIDENT QUAYLE'S COMPETITIVENESS COUNCIL WHICH SOUGHT TO REDUCE REGULATION OF BUSINESS JAPAN ANNOUNCED IT WILL BUY FOREIGN RICE TO COVER A POOR HARVEST THE COUNTRY'S AGRICULTURE MINISTER TERMED THE DECISION AN EMERGENCY STEP AND INSISTED TOKYO HAS NO INTENTION OF ALTERING ITS IMPORT BAN ON RICE CLINTON WILL MEET FOR THE FIRST TIME WITH CHINESE PRESIDENT JIANG IN SEATTLE IN NOVEMBER IN AN EFFORT TO IMPROVE WORSENING RELATIONS BETWEEN THE TWO NATIONS SECRETARY OF STATE CHRISTOPHER ANNOUNCED CHRISTOPHER SAID WASHINGTON WAS ESTABLISHING FORMAL DIPLOMATIC RELATIONS WITH PHNOM PENH FOR THE FIRST TIME IN TWO DECADES AND HAD UPGRADED THE US MISSION IN CAMBODIA TO FULL EMBASSY STATUS CONNECTICUT GOV WEICKER WON'T RUN FOR REELECTION IN 1994 IN ANNOUNCING HIS DECISION THE FORMER THREETERM REPUBLICAN SENATOR NOW A POLITICAL INDEPENDENT SAID HE WANTED TO SPEND MORE TIME WITH HIS FAMILY SEPARATIST REBELS ROUTED GEORGIAN SOLDIERS FROM THE LAST CORNER OF ABKHAZIA AS TENS OF THOUSANDS OF CIVILIANS FLED THE REGION GEORGIA'S DEMORALIZED GOVERNMENT FORCES HAVE BEEN PUSHED BACK RAPIDLY SINCE REBELS CAPTURED THE CITY OF SUKHUMI ON MONDAY 9310010019 931001 ABREAST OF THE MARKET INDUSTRIALS DROP 1118 ON WORRY OVER RISING RATES FALLING PROFITS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT RISING INTEREST RATES AND SAGGING PROFITS CHASED MOST STOCK INDEXES LOWER THE DOW JONES INDUSTRIAL AVERAGE WHICH EKED OUT A TINY GAIN WEDNESDAY EVEN THOUGH MOST OTHER INDEXES EASED SHED 1118 OR 031 TO 355512 BROADBASED INDEXES LARGELY MATCHED THE DECLINE IN THE INDUSTRIAL AVERAGE BUT BIG BOARD ADVANCERS LED DECLINERS 1130 TO 866 MOST UNSETTLING FOR STOCK INVESTORS WAS THE SECOND STRAIGHT DAY OF SELLING IN BONDS THE 30YEAR TREASURY SANK 3/8 POINT SENDING ITS YIELD BACK ABOVE 6 THE FACT THE BOND MARKET HAS REVERSED A BIT HAS TAKEN AWAY WHAT HAS BEEN THE MOST IMPORTANT UNDERPINNING OF THE EQUITY MARKET SAID STEVEN EINHORN MARKET STRATEGIST AT GOLDMAN SACHS TECHNOLOGY STOCKS AND OTHER RECENT HIGHFLIERS WERE AMONG THE HARDEST HIT EDWARD NICOSKI MARKET STRATEGIST AT PIPER JAFFRAY SAID THE JITTERY MARKET CONDITIONS HAVE SENT INVESTORS LOOKING FOR PLACES TO TAKE PROFITS ENERGY STOCKS MEANWHILE HAVE BECOME A HAVEN MR NICOSKI SAID THAT INDUSTRY GROUP ROCKETED WEDNESDAY AS CRUDE OIL PRICES RALLIED ON AN ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AGREEMENT TO CUT OUTPUT OILRELATED STOCKS WERE STRONG AGAIN SHARES OF HALLIBURTON AN OIL FIELD SERVICES CONCERN ADDED 7/8 TO 37 1/8 WHILE HELMERICH & PAYNE A CONTRACT DRILLER GAINED 1 1/8 TO 34 THE BIG PRODUCERS WEDNESDAY'S BRIGHTEST STARS WERE MIXED CHEVRON WAS UP 3/4 TO 97 3/4 EXXON FELL 1 1/8 TO 65 1/2 CARMINE J GRIGOLI A SENIOR VICE PRESIDENT AT NOMURA RESEARCH INSTITUTE AMERICA SAID A BIG PART OF THE RECENT LACKLUSTER MARKET ACTION IS TIED TO APPREHENSION ABOUT THE FLOOD OF EARNINGS NEWS THAT WILL WASH THROUGH THE MARKET STARTING IN ABOUT THREE WEEKS SIGNS OF ECONOMIC WEAKNESS OVER THE PAST SEVERAL MONTHS JUSTIFY THE SKITTISHNESS ABOUT PROFITS MR GRIGOLI SAID BUT HE DOESN'T THINK A BIG DROP IN STOCKS IS LIKELY THE DECLINES OF THE PAST SEVERAL WEEKS HAVE ALREADY TAKEN STOCKS TO A LEVEL THAT REFLECTS LESSTHANSTELLAR CORPORATE PROFIT NEWS HE SAID THE STANDARD & POOR'S 500 STOCK INDEX FELL 118 OR 026 TO 45893 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 037 OR 014 TO 25523 THE NASDAQ COMPOSITE INDEX SLIPPED 039 OR 005 TO 76278 DEPRESSED FOR A SECOND DAY BY TECHNOLOGY SHARES MICROSOFT LOST 1/2 TO 82 1/2 AND INTEL SLUMPED 2 1/2 TO 70 3/4 ON THE BIG BOARD TEXAS INSTRUMENTS DROPPED 1 1/8 TO 75 1/2 ADVANCED MICRO DEVICES SLID 1 3/4 TO 26 3/8 AND MOTOROLA LOST 5/8 TO 101 THE SMALLEST STOCKS THOUGH RALLIED THE RUSSELL 2000 INDEX WHICH TRACKS NASDAQ AND EXCHANGELISTED ISSUES ROSE 144 OR 057 TO 25295 A FIFTH STRAIGHT RECORD CLOSE GENERAL MOTORS TUMBLED 2 1/8 TO 41 3/4 ON VOLUME OF 78 MILLION SHARES THE WALL STREET JOURNAL REPORTED THAT GM'S BOARD PLANS TO REVIEW ITS LABOR STRATEGY RECENT DEVELOPMENTS IN CONTRACT TALKS INDICATE THE COMPANY MIGHT HAVE TROUBLE ACHIEVING ITS GOAL OF CONTAINING LABOR COSTS USF&G SHED 1 7/8 TO 14 3/8 KIDDER PEABODY ANALYST STEVEN GAVIOS ONE OF WALL STREET'S BIGGEST BULLS ON THE BALTIMORE INSURER SLASHED EARNINGS ESTIMATES FOR THE COMPANY CITING DECLINING INVESTMENT YIELDS HE TRIMMED HIS 1993 FORECAST TO 50 CENTS A SHARE FROM 65 CENTS ASHLAND COAL DROPPED 1 1/2 TO 30 AFTER SAYING THAT A STRIKE HAD A SIGNIFICANT EFFECT ON ITS THIRDQUARTER EARNINGS THE DECLINE WILL BE OFFSET THOUGH BY A 50 MILLION REDUCTION IN INCOME TAX EXPENSES AMERICAN DEPOSITARY RECEIPTS OF YPF CLIMBED 1 TO 25 3/8 SMITH BARNEY SHEARSON ADDED THE ARGENTINE OIL AND GAS CONCERN TO ITS INVESTMENT POLICY COMMITTEE BUY LIST SMITH BARNEY HAS PROJECTED STRONG GROWTH FOR YPF OVER THE NEXT TWO YEARS COMMUNITY PSYCHIATRIC ADDED 1 1/2 TO 13 1/4 AFTER CS FIRST BOSTON RAISED ITS RATING ON THE STOCK TO BUY FROM HOLD THE HOSPITAL OPERATOR ON WEDNESDAY REPORTED THIRDQUARTER EARNINGS OF NINE CENTS A SHARE UP FROM FIVE CENTS A YEAR AGO CHEMICAL WASTE MANAGEMENT FELL 1/4 TO 8 1/2 WHILE SHARES OF WMX TECHNOLOGIES ITS PARENT SKIDDED 1 TO 30 1/2 CHEMICAL WASTE PLANS A RESTRUCTURING THAT WILL ELIMINATE 1200 JOBS AND REQUIRE A THIRDQUARTER CHARGE OF 174 A SHARE THE MOVES WILL FORCE A 59 CENTSASHARE CHARGE IN THE QUARTER AT WMX STATE STREET BOSTON JUMPED 2 1/8 TO 35 5/8 IN NASDAQ TRADING WHILE SHAWMUT NATIONAL EASED 7/8 TO 24 1/2 DONALDSON LUFKIN & JENRETTE PULLED SHAWMUT FROM A RECOMMENDED LIST AND NAMED STATE STREET AS ITS SUBSTITUTE STATE STREET IS NOW RATED A BUY WHILE SHAWMUT IS TERMED VERY ATTRACTIVE DOWN FROM BUY ROWAN COS ADVANCED 3/4 TO 9 1/2 AFTER THE OIL AND GAS CONCERN SAID IT EXPECTS THIRDQUARTER EARNINGS OF 6 MILLION TO 8 MILLION ON REVENUE OF ABOUT 104 MILLION A YEAR EARLIER IT HAD A LOSS OF 142 MILLION ON 706 MILLION IN EVENUE 9310010018 931001 GADHAFI'S PLOY SOME AMERICANS HELP LIBYA'S BID TO ESCAPE PAN AM 103 SANCTIONS FAMILIES OF BOMBING VICTIMS GET COMPENSATION OFFERS LINKED TO A POSSIBLE TRIAL A LUXURIOUS TRIP TO TRIPOLI BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CONSULTANT ALBERT GRASSELLI ESCORTED A PROMINENT REPUBLICAN CONGRESSMAN ON A TRIP TO LIBYA LAST YEAR IT WAS FIRST CLASS ALL THE WAY THE CONCORDE TO LONDON A PRIVATE JET TO A SEASIDE RESORT IN TUNISIA AND ON TO TRIPOLI VIA MERCEDESBENZ LIMOUSINE IN THE LIBYAN CAPITAL THEY EACH HAD A SUITE WITH THREE BATHROOMS A MAIN SALON A DINING ROOM WITH A TABLE SEATING 10 A BOOKLINED STUDY AND A COMPLETELY EQUIPPED KITCHEN MR GRASSELLI LATER RECOUNTED IN A MEMO NOT LONG AFTERWARD GLENN AND CAROLE JOHNSON WHOSE ONLY CHILD 21YEAROLD BETH ANN WAS AMONG THE 270 VICTIMS OF THE 1988 BOMBING OF PAN AM FLIGHT 103 SAT ON THEIR BACKYARD PORCH IN GREENSBURG PA WITH TWO VISITORS FROM WASHINGTON ONE A LAWYER AND THE OTHER A LOBBYIST THOUGH THE SURROUNDINGS WERE VASTLY DIFFERENT THE PITCH WAS BASICALLY SIMILAR SUPPOSE THAT COL MOAMMAR GADHAFI THE LIBYAN STRONGMAN AGREED TO HAND OVER THE TWO LIBYAN OFFICIALS INDICTED FOR THE PAN AM BOMBING BUT TO HAND THEM OVER NOT TO THE US OR BRITAIN AS DEMANDED BY THE UNITED NATIONS BUT FOR TRIAL IN SOME OTHER UNNAMED NATION THOSE TWO APPROACHES WERE HARDLY COINCIDENTAL RATHER THEY REFLECT A MOSTLY SECRET GLOBAL EFFORT BY COL GADHAFI TO ESCAPE THE SANCTIONS IMPOSED ON HIM BY THE UN IN THE WAKE OF EVIDENCE LINKING LIBYA TO THE BOMBING SENIOR US OFFICIALS SAY THERE HAVE BEEN HUNDREDS OF SUCH CONTACTS ON LIBYA'S BEHALF IN THE PAST FOUR YEARS USUALLY SUGGESTING A COMPROMISE SUCH AS HOLDING A TRIAL IN A THIRD COUNTRY UNDER RULES SET BY COL GADHAFI OFTEN THE CONTACTS INCLUDE DIRECT OR INDIRECT OFFERS OF COMPENSATION OF AS MUCH AS 1 MILLION EACH TO THE PAN AM 103 FAMILIES IN THE APPARENT AND PROBABLY ACCURATE BELIEF THAT NEUTRALIZING THEIR CRITICISM WOULD BE A VITAL STEP TOWARD ENDING THE UN SANCTIONS SO FAR THE EFFORTS HAVE FLOPPED MISERABLY WE AREN'T LOOKING TO BE BOUGHT OFF SAYS SUSAN COHEN WHOSE 20YEAROLD DAUGHTER THEODORA WAS KILLED ON PAN AM 103 THESE ARE OUR CHILDREN BUT WHAT IS MOST SURPRISING IS THE HELP THE LIBYAN GOVERNMENT HAS GOTTEN FROM SOME AMERICANS THEY RANGE FROM A BEVY OF LOBBYISTS AND FORMER CONGRESSMEN SEVERAL OF THEM SCANDALTARRED TO THE STATE DEPARTMENT'S FORMER TOP LEGAL OFFICER AND A BUSINESSMAN WHO BUT FOR A LASTMINUTE CHANGE OF PLANS WOULD HIMSELF HAVE DIED ON THE DOOMED PLANE ALL THESE GUYS CLAIM TO BE OPERATING FROM ALL KINDS OF DIFFERENT MOTIVES BUT THEY'RE JUST BEING USED BY GADHAFI TO STALL THE PROCESS CHARGES HENRY SCHULER AN EXPERT ON LIBYA AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON THE LIBYAN EFFORTS BRIEFLY BURST INTO THE HEADLINES EARLIER THIS SUMMER WHEN ABRAHAM SOFAER THE STATE DEPARTMENT'S TOP LAWYER DURING THE REAGAN ADMINISTRATION AND ONE OF THE AUTHORS OF THE 1986 US SANCTIONS AGAINST LIBYA BECAUSE OF ITS ALLEGED USE OF TERRORISM AGAINST THE US ANNOUNCED THAT HIS FIRM HAD BEEN RETAINED BY LIBYA TO HELP FIND A CONSENSUAL RESOLUTION TO THE PAN AM 103 DISPUTE THE INTERNATIONAL LAW FIRM OF HUGHES HUBBARD & REED OF WHICH MR SOFAER IS ASSOCIATED SAYS IT QUICKLY DROPPED THE NEW CLIENT AMID HOWLS OF PROTEST INCLUDING PLANS BY RELATIVES OF PAN AM 103 VICTIMS TO PICKET HIS WASHINGTON LAW OFFICE BUT FAR FROM BEING AN ISOLATED CASE THE SOFAER EPISODE WAS JUST ONE MANEUVER IN THE LIBYANS' ATTEMPTS TO ENLIST HIGHPROFILE AMERICANS TO HELP THEM FOR LIBYA THE STAKES ALREADY HIGH ARE EXPECTED TO INCREASE TODAY WHEN COL GADHAFI MUST MEET A UN DEADLINE FOR TURNING OVER THE SUSPECTS ABD ALBASIT ALMAQRAHI AND LAMIN FHIMAH IF HE DOESN'T THE US BRITAIN AND FRANCE ARE SET TO PROPOSE RATCHETING UP THE SANCTIONS LIBYA NOW SAYS IT DOESN'T OBJECT TO A TRIAL IN SCOTLAND WHICH OF COURSE IS PART OF THE UNITED KINGDOM AND THAT IT IS TRYING TO PERSUADE THE TWO MEN TO GIVE THEMSELVES UP VOLUNTARILY BUT IT SAYS THAT DETAILS CAN'T BE WORKED OUT BY TODAY'S DEADLINE AND FEW PEOPLE REALLY EXPECT THE LIBYAN LEADER TO TURN OVER THE TWO SUSPECTS WHO PROBABLY KNOW TOO MUCH ABOUT HIS GOVERNMENT'S TERRORIST ACTIVITIES ALTHOUGH MR SOFAER WOULD HAVE BEEN RETAINED DIRECTLY BY THE LIBYAN GOVERNMENT THAT WASN'T THE CASE FOR MANY OTHERS INVOLVED FOR THEM THE CONNECTION WITH LIBYA WAS USUALLY HIDDEN BY SOCALLED CUTOUTS INDIVIDUALS AT LEAST ONE STEP REMOVED FROM THE GOVERNMENT MR GRASSELLI FOR INSTANCE SAYS HE WASN'T WORKING ON BEHALF OF COL GADHAFI BUT RATHER FOR HASSAN TATANAKI A WEALTHY LIBYAN IT WAS MR TATANAKI HE SAYS WHO PAID FOR HIS TRIP TO LIBYA LAST YEAR TO ACCOMPANY THE REPUBLICAN CONGRESSMAN WILLIAM DICKINSON OF ALABAMA WHO WAS THEN THE TOP GOP MEMBER ON THE HOUSE ARMED SERVICES COMMITTEE BUT HAS SINCE LEFT CONGRESS MR TATANAKI HE SAYS ALSO PAID FOR THE TRIP OF A THIRD MEMBER OF THE GROUP FORMER DEMOCRATIC REP JOHN MURPHY OF NEW YORK WHO SERVED 20 MONTHS IN PRISON AFTER BEING ENSNARED IN THE ABSCAM BRIBERY SCANDAL MR GRASSELLI SAYS MR TATANAKI IS MOTIVATED BY HOPES FOR A NORMALIZATION OF USLIBYAN RELATIONS BECAUSE THE PRESENT EMBARGO IS HURTING HIS BUSINESS MR GRASSELLI ADDS THAT TO HIS KNOWLEDGE MR TATANAKI WHO LIVES IN CAIRO BUT OFTEN COMMUTES TO LIBYA ISN'T ACTING AT THE BEHEST OF THE LIBYAN GOVERNMENT MR DICKINSON WHO NOW IS A WASHINGTON CONSULTANT SAYS HE ASSUMED MR GRASSELLI WAS PAYING FOR THE TRIP INDEED HE CONTENDS THAT HE KNEW SO FEW DETAILS THAT HE THOUGHT THEY WERE GOING TO TUNISIA NOT LIBYA ACTUALLY THE COUNCIL FOR THE NATIONAL INTEREST A WASHINGTONBASED MIDEAST THINK TANK AGREED TO SPONSOR MR DICKINSON'S TRIP BY SOLICITING A TAXDEDUCTIBLE CONTRIBUTION FROM MR GRASSELLI THE CONTRIBUTION WAS LARGE ENOUGH TO PAY FOR THE CONCORDE TICKET AND LEAVE A LITTLE SOMETHING FOR THE COUNCIL SAYS DAVID BOWEN THEN ITS EXECUTIVE DIRECTOR AND ANOTHER FORMER CONGRESSMAN A MONTH AFTER THE TRIP MESSRS GRASSELLI MURPHY AND BOWEN FORMED GBM CONSULTANCY LTD THEIR CLIENT WAS MR TATANAKI WHO AGREED TO PAY GBM 450000 FOR A YEAR'S WORTH OF HELP ON IMPROVING USLIBYA TIES ACCORDING TO MR GRASSELLI BUT A FEW MONTHS LATER THE TREASURY ANNOUNCED AN END TO THE DEAL WHICH IT SAID VIOLATED THE US EMBARGO OF LIBYA THE THREE AMERICANS WERE FINED MR BOWEN 20000 MR MURPHY 10000 MR GRASSELLI 5000 BUT GBM KEPT A 200000 ADVANCE PAYMENT FROM MR TATANAKI MR GRASSELLI SAYS HE AND MR MURPHY WHO NOW IS A BUSINESS CONSULTANT IN NEW YORK ARE CLOSE FRIENDS SO I ASKED HIM IF HE WANTED TO GO IF WE COULD HELP TATANAKI MR GRASSELLI ADDS THAT HE AND MR BOWEN ALSO ARE CLOSE FRIENDS HE SAYS HE ASKED MR BOWEN TO JOIN THE CONSULTANCY BECAUSE HE WAS WORKING FOR CNI AND I THOUGHT IT WOULD BE A GOOD FIT MR GRASSELLI SAYS HE TOLD MR BOWEN THAT THE TRIP TO LIBYA WAS TO TALK ABOUT IMPROVING USLIBYA RELATIONS TO HELP OUT MR TATANAKI AND HIS BUSINESS INTERESTS ANOTHER AMERICAN ENLISTED BY THE LIBYANS AND THE MAN BEHIND THE APPROACH TO THE JOHNSONS AND OTHER PAN AM FAMILIES IS HENRY KARTCHNER A WEALTHY SEATTLE BUSINESSMAN MR KARTCHNER ONCE HAD SUBSTANTIAL AGRICULTURAL TRADE WITH LIBYA BUT HE SAYS NOW IS OWED 80 MILLION AS A RESULT OF THE US EMBARGO SO WHEN SOME LIBYAN OFFICIALS ASKED HIM IF HE COULD HELP IMPROVE THE SITUATION HE GAVE IT A TRY ABOUT A YEAR AGO MR KARTCHNER HIRED M VAL MILLER A WASHINGTON LAWYER TO TRY TO FIND HIGHLEVEL SUPPORTERS OF A COMPROMISE CONCERNING THE TWO LIBYAN SUSPECTS MR MILLER IN TURN BROUGHT IN AMONG OTHERS C MCCLAIN HADDOW A WASHINGTON LOBBYIST WHO HAD SERVED A PRISON TERM AFTER PLEADING GUILTY TO CONFLICTOFINTEREST CHARGES FROM HIS TIME AS A REAGANADMINISTRATION OFFICIAL I WAS TRYING TO SEE IF WE COULD TALK TO BOTH SIDES TO SEE IF WE COULD GET THESE MEN TO TRIAL TO GET THESE SANCTIONS OVER WITH MR KARTCHNER SAYS WE APPROACHED TWO OR THREE SENATORS TO SEE WHAT KIND OF REACTION THEY'D HAVE THE TWO MEN ALSO BEGAN TO APPROACH SEVERAL GROUPS OF FAMILY MEMBERS OF THE PAN AM 103 VICTIMS TO HELP SET ONE SUCH MEETING MR MILLER ARRANGED TO MEET WITH THE JOHNSONS WHO HAVE BEEN ACTIVE IN ONE OF THE GROUPS ACCORDING TO MR JOHNSON'S NOTES OF THE MEETING ON HIS PORCH MR HADDOW SUGGESTED THAT THE VICTIMS' FAMILIES WRITE LETTERS TO CONGRESS CALLING FOR AN INVESTIGATION OF THE STATE DEPARTMENT BY REBUFFING LIBYA'S OFFERS AND INSISTING THAT THE ISSUE BE RESOLVED THROUGH THE UN THE DEPARTMENT WAS BLOCKING EFFORTS TO SETTLE THE ISSUE MESSRS HADDOW AND MILLER SAID MR HADDOW ALSO INDICATED ACCORDING TO THE JOHNSONS THAT IF THE TWO LIBYANS WERE FOUND GUILTY AFTER A FAIR TRIAL THE LIBYAN GOVERNMENT MIGHT BE WILLING TO PAY COMPENSATION OF AT LEAST 1 MILLION TO EACH FAMILY THE TWO TOLD THE JOHNSONS THAT THEY HAD DISCUSSED THESE ISSUES AT A MEETING IN ZURICH EARLIER THAT MONTH WITH LIBYA'S VICE MINISTER OF FOREIGN AFFAIRS MR JOHNSON SAYS AFTER THE MEETING WITH THE JOHNSONS MESSRS MILLER AND HADDOW MET WITH A LARGER GROUP OF VICTIMS' FAMILIES AND OFFERED BASICALLY THE SAME MESSAGE MR HADDOW REFERS ALL QUESTIONS TO MR MILLER WHO SAYS THAT NEVER EVER DID WE REPRESENT LIBYA THE WHOLE INTENT WAS TO TRY TO HELP HIM MR KARTCHNER GET HIS MONEY BACK MR MILLER ADDS THAT BESIDES CONTACTING SEVERAL MEMBERS OF CONGRESS WE DID RESEARCH ON THE FAMILIES WE TRIED TO MEET WITH A NUMBER OF THEM JOHNSON WAS THE FIRST ONE WE TALKED WITH UNKNOWN TO MESSRS MILLER AND HADDOW HOWEVER THE JOHNSONS AND THE OTHER FAMILY MEMBERS HAD ALLOWED NBC NEWS TO SECRETLY TAPE THE SESSIONS ONCE THE TAPES BECAME PUBLIC MR KARTCHNER SAYS HE CALLED A HALT TO HIS FORAY INTO INTERNATIONAL DIPLOMACY THEY WERE SET UP AND MADE FOOLS OF SO I PULLED OUT HE SAYS ADDING THAT HE HAS NO SYMPATHY FOR TERRORISTS FOR GOOD REASON IN DECEMBER 1988 MR KARTCHNER RECOUNTS HE WAS IN LONDON ON BUSINESS AND SCHEDULED TO FLY TO NEW YORK FOR A MEETING A DAY BEFORE THE FLIGHT HIS MEETING WAS CANCELED HE CHANGED HIS RESERVATION FROM PAN AM 103 AND FLEW HOME TO SEATTLE FOR THE HOLIDAYS INSTEAD BUT THE FAMILIES OF THOSE WHO WEREN'T SO LUCKY KEEP GETTING OVERTURES THE LIBYANS ARE FOCUSING ON US BECAUSE AT THIS POINT THEY FEEL WE'RE IN THE WAY SAYS MRS COHEN WHOSE DAUGHTER WAS KILLED IN AUGUST MRS COHEN GOT A CALL FROM ROBERT GREENBERG A WASHINGTON CONSULTANT ACCORDING TO HER NOTES OF THE CONVERSATION MR GREENBERG SAID HE KNEW PEOPLE WHO CLAIMED TO HAVE INFORMATION ABOUT SYRIAN INVOLVEMENT IN THE BOMBING DESPITE SUSPICIONS ABOUT A WIDER CONSPIRACY US AND BRITISH INVESTIGATORS AFTER AN EXHAUSTIVE SEARCH HAVE TURNED UP SOLID EVIDENCE ONLY OF LIBYAN CULPABILITY MRS COHEN SAYS MR GREENBERG SUGGESTED A POSSIBLE MEETING WITH HIS CONTACTS AND THE PROSPECT OF A SESSION WITH INTERMEDIARIES FOR LIBYA MRS COHEN IMMEDIATELY NOTIFIED THE JUSTICE DEPARTMENT OF THE CONTACT AND CONSULTED HER LAWYER A FEW DAYS LATER SHE SAYS SHE TOLD MR GREENBERG THAT I WANTED NOTHING TO DO WITH THIS IN SEVERAL PHONE CONVERSATIONS MR GREENBERG REFUSED TO COMMENT ON MRS COHEN'S ACCOUNT THE APPROACHES TO THE FAMILIES HAVE COME THROUGH A VARIETY OF CHANNELS IN JUNE FOR EXAMPLE LIBYA'S AMBASSADOR TO GREECE CONTACTED MARY PRACHNER A US LAWYER LIVING IN GERMANY WHO AT ONE POINT WAS RETAINED BY THE FAMILY OF A PAN AM BAGGAGE HANDLER WHO HAD BEEN SUSPENDED AFTER THE BOMBING AND WHO HAPPENED TO BE IN GREECE ON UNRELATED BUSINESS OVER FRUIT AND TEA IN A LAVISH VILLA IN THE HILLS ABOVE ATHENS THE AMBASSADOR ASKED MS PRACHNER TO CONVEY AN OFFER TO A NEW YORK ATTORNEY LEE KREINDLER WHO REPRESENTS MANY OF THE PAN AM 103 FAMILIES IN A CIVIL LAWSUIT THE DEAL WAS MUCH THE SAME AS THAT PROFFERED BY MR MILLER LIBYA WOULD SURRENDER THE TWO INDICTED OFFICIALS FOR TRIAL IN A THIRD COUNTRY NOT THE US OR BRITAIN IF THEY WERE FOUND GUILTY LIBYA WOULD PAY COMPENSATION TO THE VICTIMS' FAMILIES MR KREINDLER REJECTED THE OFFER BUT PERHAPS THE MOST UNLIKELY POINT OF CONTACT WAS AN AUGUST MEETING BETWEEN DEMOCRATIC SEN EDWARD M KENNEDY OF MASSACHUSETTS A LEADING CONGRESSIONAL CHAMPION OF THE PAN AM 103 FAMILIES AND ALBERT REICHMANN A CANADIAN BUSINESSMAN WHOSE FAMILY OWNS THE OLYMPIA & YORK REALESTATE EMPIRE WHICH HAD TWO EMPLOYEES ON THE ILLFATED FLIGHT SEN KENNEDY ASSUMED THAT MR REICHMANN AN ORTHODOX JEW WANTED TO TALK ABOUT ISRAEL WHERE THE REICHMANNS HAVE WIDERANGING PHILANTHROPIC PROJECTS BUT DURING THE MEETING WHICH WAS FIRST REPORTED BY NEW YORK MAGAZINE MR REICHMANN SAID THE LIBYANS WERE PREPARED TO COMPENSATE THE VICTIMS ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSION THEY SAY SEN KENNEDY WAS SO SHOCKED BY THE SUGGESTION THAT HE IMMEDIATELY BROKE OFF THE SESSION AND TURNED MR REICHMANN OVER TO AN AIDE WHO LATER REPORTED MR REICHMANN'S REMARKS TO TREASURY OFFICIALS A SPOKESMAN FOR MR REICHMANN SAYS HE WON'T COMMENT ON THE MEETING 9310010017 931001 SMALL STOCK FOCUS MARKET REMAINS CAUTIOUS BUT STOCKS GAIN PUSHED BY ENDOFQUARTER BUYING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SOME ENDOFQUARTER BUYING PUSHED SMALLCOMPANY STOCK PRICES HIGHER PAST THE MILDLY FIRMER LEVELS HIT EVERY DAY THIS WEEK PATCHES OF STRENGTH AMONG FINANCIALRELATED ISSUES IN PARTICULAR HELPED TO KEEP SMALL STOCKS AHEAD OF LARGER ISSUES WHICH FOLLOWED THE BOND MARKET LOWER ON NASDAQ THE NASDAQ COMPOSITE INDEX CLIMBED HIGHER NEAR THE CLOSE BUT STILL LOST 039 POINT OR 005 TO END AT 76278 I THINK THERE'S BEEN SOME WINDOW DRESSING' GOING ON FOR MOST OF THE WEEK SAID NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE/JOHNSON LANE CORP BUT THIS IS A VERY CAUTIOUS MARKET IT LOOKS GOOD ONE DAY AND THE NEXT DAY YOU DON'T KNOW WHAT TO DO WITH IT GEORGE SCHOPPER MANAGER OF OTC TRADING AT RODMAN & RENSHAW SAID THAT MUCH OF YESTERDAY'S SESSION CONSISTED OF MARKET PLAYERS BALANCING OUT THEIR POSITIONS BEFORE THE QUARTER AND MONTH DREW TO A CLOSE GAINING NASDAQ ISSUES TOPPED LOSERS 1811 TO 1146 ON NASDAQ NATIONAL MARKET VOLUME OF 306211000 SHARES DOWN FROM 341324000 SHARES WEDNESDAY THIS HAS BEEN SUCH AN UNUSUAL MARKET SAID BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO WE'VE BEEN OUT AT RECORD HIGHS BUT EVERYONE'S BEEN NERVOUS BECAUSE IT'S BEEN INTERESTRATE DRIVEN RATHER THAN EARNINGSDRIVEN SAGGING BOND PRICES SPARKED SOME SELLING AMONG LARGER ISSUES WHILE SOME SMALLER ONES MANAGED TO ESCAPE THE PROFITTAKING SEVERAL LEADING TECHNOLOGY COMMUNICATIONS AND MEDICALRELATED STOCKS WERE BRUISED THE TREASURY'S 30YEAR BOND DROPPED 3/8 POINT DRIVING ITS YIELD BACK ABOVE THE CRITICAL 6 LEVEL BUT SOME SMALL TECHNOLOGY STOCKS ESCAPED THE PROFITTAKING THAT HIT THE LEADERS IN THOSE GROUPS BELL MICROPRODUCTS BASED IN SAN JOSE CALIF ROSE 1/4 TO 8 1/4 EQUINOX SYSTEMS OF FORT LAUDERDALE FLA WAS UP 1 TO 6 CYTOGEN OF PRINCETON NJ GAINED 2 1/8 TO 7 1/4 AND PARK COMMUNICATIONS OF ITHACA NY ADDED 7/8 TO 19 1/2 FINANCIAL ISSUES MANAGED TO HOLD STEADY IN MANY CASES ON INDIVIDUAL COMPANY NEWS CALIFORNIA FEDERAL BANK'S NYSE CLASS A SHARES JUMPED 1 5/8 TO 15 FOLLOWING THE COMPANY'S ANNOUNCEMENT THAT IT HAD HIRED SMITH BARNEY SHEARSON INC AS ITS INVESTMENT ADVISER ON HOW TO BEST MAXIMIZE SHAREHOLDER VALUE LEADER FINANCIAL WAS UNCHANGED AT 14 7/8 THE COMPANY SAID IT COMPLETED THE CONVERSION OF ITS LEADER FEDERAL BANK FOR SAVINGS SUBSIDIARY TO A FEDERALLY CHARTERED STOCK SAVINGS BANK FROM A FEDERALLY CHARTERED MUTUAL SAVINGS BANK ALSO FIRST CASH ADDED 1/2 TO 3 5/8 ALTHOUGH THE FORT WORTH TEXAS OPERATOR OF PAWN SHOPS REPORTED FISCALYEAR EARNINGS OF 30 CENTS A SHARE COMPARED WITH 39 CENTS A YEAR EARLIER BUT LOMAS FINANCIAL NYSE FELL 1 3/8 TO 9 ALEX BROWN & SONS INC ANALYST SY JACOBS INITIATED COVERAGE ON THE DALLAS COMPANY WITH A SELL RATING CITING THE RISK THAT THE MORTGAGE BANKER MIGHT BE FORCED TO TAKE SUBSTANTIAL WRITEOFFS IN ITS SERVICING RIGHTS PORTFOLIO AND ITS DATA PROCESSING BUSINESS AFTER THE CLOSE LOMAS'S CHIEF FINANCIAL OFFICER MICHAEL E PATRICK DENIED THAT WRITEDOWNS ARE IMMINENT THE OFFICER ALSO DEFENDED THE COMPANY'S VALUATION METHOD FOR ITS SERVICING RIGHTS CITING ADVICE LOMAS RECEIVED FROM AN OUTSIDE CONSULTANT AND THE APPROVAL OF AUDITOR ERNST & YOUNG SEPARATELY STANDARD & POOR'S CORP ISSUED A REPORT REITERATING ITS BUY RECOMMENDATION ON LOMAS SAYING THAT EVEN WITH BIG WRITEOFFS CASH FLOW WOULDN'T BE AFFECTED IN THE NEW ISSUES ARENA CAPITAL GUARANTY CLOSED AT 23 ABOVE ITS 21ASHARE OFFERING PRICE THE SAN FRANCISCO INSURANCE HOLDING COMPANY INTENDS TO USE PROCEEDS TO SUPPORT PLANNED GROWTH AND FOR GENERAL PURPOSES ALSO BELDEN ENDED THE SESSION AT 14 3/4 FOLLOWING ITS OFFERING WEDNESDAY OF 21 MILLION COMMON SHARES AT 1425 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO RALLY'S HAMBURGERS OF LOUISVILLE KY WAS OFF 2 7/8 TO 11 7/8 ON NEWS LATE WEDNESDAY THAT IT EXPECTS THIRDQUARTER EARNINGS BELOW ANALYSTS' ESTIMATES OF 23 CENTS TO 25 CENTS A SHARE THE COMPANY ADDED THAT IT WILL RECORD A ONETIME CHARGE OF 10 CENTS A SHARE AS A RESULT OF A LAWSUIT SETTLEMENT WITH INTERNATIONAL SHORTSTOP BJ SERVICES NYSE GAINED 1 3/8 TO 21 7/8 THE HOUSTON PROVIDER OF WELL CEMENTING AND STIMULATION SERVICES SAID IT EXPECTS TO POST OPERATING EARNINGS FOR ITS FISCAL YEAR ENDED YESTERDAY IN LINE WITH ANALYSTS' ESTIMATES OF ABOUT 85 CENTS A SHARE THAT COMPARES WITH OPERATING EARNINGS OF 72 CENTS A SHARE FOR FISCAL 1992 NEORX OF SEATTLE TOPPED THE NASDAQ MOST ACTIVE LIST WITH VOLUME OF ABOUT 73 MILLION SHARES WAY ABOVE AVERAGE DAILY VOLUME OF JUST 92400 THE COMPANY WHICH JUMPED 9/32 TO 2 5/16 SAID IT FILED THE RESULTS OF A COMPARISON STUDY TO QUALIFY A BOEHRINGER INGELHEIM KG SUBSIDIARY AS THE MANUFACTURER OF NEORX'S ONCOTRAC KIT WITH THE FOOD AND DRUG ADMINISTRATION 9310010016 931001 FORECASTS FOR AN ERA OF VIOLENT STORMS SWING INSURANCE INDUSTRY INTO ACTION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BLAME GLOBAL WARMING OR HEAVY RAINS IN THE NORTH AFRICA DESERT BUT SOMETHING IS CAUSING MORE HURRICANES AND NOT SURPRISINGLY THE INCREASING FREQUENCY OF HURRICANES IS WORRYING ENVIONMENTALISTS AND THE INSURANCE INDUSTRY BEFORE HURRICANE ANDREW HIT IN 1992 THE US EXPERIENCED MORE THAN 20 YEARS OF RELATIVE CALM DESPITE SUCH POWERFUL STORMS AS HURRICANE CAMILLE IN 1969 AND HURRICANE GLORIA IN 1985 THE 1940S AND 1950S WERE MUCH MORE VIOLENT THAN LATER DECADES NOW THERE IS AMPLE EVIDENCE TO SUGGEST THE US IS RETURNING TO A PERIOD OF ROUGHER WEATHER THE WIND REALLY HASN'T BLOWN FOR 27 YEARS SAID DALLAS LUBY EXECUTIVE VICE PRESIDENT OF GENERAL RE CORP THE COUNTRY'S LARGEST REINSURER AT A CONFERENCE OF ENVIRONMENTALISTS AND INSURANCE INDUSTRY EXECUTIVES IF HISTORY JUST REPEATS ITSELF WE HAVE A LOT MORE HURRICANES TO CONTEND WITH TO BE SURE NOT EVERYONE AGREES THAT THE US IS IN FOR MORE HURRICANES BUT IF THE INSURANCE INDUSTRY BELIEVES MORE STORMS ARE COMING WHETHER THE STORMS ACTUALLY OCCUR OR NOT IT WILL CHARGE HIGHER PREMIUMS AND SEEK TO LIMIT ITS EXPOSURE BY DENYING COVERAGE THAT'S ALREADY HAPPENING PROPERTY INSURANCE COSTS HAVE RISEN SINCE HURRICANE ANDREW AND INSURERS HAVE PULLED BACK FROM COASTAL AREAS CAUSING AN INSURANCE CRUNCH IN FLORIDA AND PARTS OF THE NORTHEAST BUT THE EXPERTS ATTENDING THE CONFERENCE SAID THE INSURANCE INDUSTRY NOT TO MENTION GOVERNMENT NEEDS TO DO MORE TO LIMIT THE POTENTIAL DAMAGE WE MUST ACT NOW TO PREPARE FOR A SERIES OF ANDREWS SAID RUSSELL MULDER DIRECTOR OF RISK ENGINEERING FOR ZURICH AMERICANINSURANCE GROUP AN ARM OF SWITZERLAND'S ZURICH INSURANCE CO THE CONFERENCE WAS SPONSORED BY THE COLLEGE OF INSURANCE AS WELL AS GREENPEACE THE ENVIRONMENTAL GROUP AND ENVIRONMENTAL TECHNOLOGIES & TELECOMMUNICATIONS LTD A RISKMANAGEMENT CONSULTING FIRM METEOROLOGISTS SUSPECT THAT GLOBAL WARMING CONTRIBUTES TO HURRICANE ACTIVITY BY RAISING THE TEMPERATURE OF THE OCEANS WARMER WATER TEMPERATURES WOULD LENGTHEN THE HURRICANE SEASON WHICH NOW LASTS FROM JUNE TO NOVEMBER AND WOULD MAKE THE HURRICANES MORE SEVERE ACCORDING TO SOME SCIENTISTS ANOTHER THEORY TIES THE FREQUENCY OF HURRICANES TO THE WEATHER CONDITIONS IN THE SAHEL REGION OF NORTH AFRICA NEAR THE AREA IN THE ATLANTIC THAT SPAWNS HURRICANES FROM 1947 TO 1969 WHEN THE SAHEL WAS WETTER THAN NORMAL 13 MAJOR HURRICANES STRUCK FLORIDA DURING A DROUGHT THAT LASTED FROM 1970 TO 1987 ONLY ONE MAJOR HURRICANE HIT THE SUNSHINE STATE NOW EVIDENCE SUGGESTS THE SAHEL IS MOVING INTO A WETTER PERIOD BUT MR MULDER OBSERVED THAT THE CASE AGAINST AN INCREASE IN HURRICANE ACTIVITY IS ALSO COMPELLING HE ADDED THAT MANY HAVE PERSUASIVELY ATTACKED THE SCIENTISTS WHO ARGUE FOR MORE STORMS WHAT CANNOT BE DENIED HOWEVER IS THAT MORE PEOPLE LIVE NEAR THE COASTS THAN EVER BEFORE CURRENTLY ABOUT HALF OF THE US POPULATION LIVES WITHIN 50 MILES OF THE OCEAN IN ADDITION MORE PROPERTY IS BEING BUILT ALONG THE WATER EVERY YEAR AS HURRICANE ANDREW DEMONSTRATED THOSE HOMES AND BUILDINGS ARE OFTEN TOO WEAK TO WITHSTAND HURRICANEFORCE WINDS SOCIETY MUST BE EDUCATED TO THE RISKS OF LIVING IN HARM'S WAY SAID EUGENE LECOMTE PRESIDENT OF THNATIONAL COMMITTEE ON PROPERTY INSURANCE AN INDUSTRY GROUP THAT STUDIES ISSUES RELATING TO PROPERTY INSURANCE FOR ITS PART THE INSURANCE INDUSTRY IS TRYING TO TEACH THE PUBLIC ABOUT THE RISKS OF LIVING ON THE COASTS AND LOBBYING FOR MORE EFFECTIVE BUILDING CODES IT ALSO WANTS TO CREATE A FUND ADMINISTERED BY THE FEDERAL GOVERNMENT THAT WOULD BAIL OUT INSURERS FROM THE ENORMOUS LOSSES THAT WOULD HAVE OCCURED IF HURRICANE ANDREW WHICH GENERATED 16 BILLION IN CLAIMS HIT A MORE POPULATED AREA IF IT HAD FOLLOWED THE SAME PATH AS THE 1938 HURRICANE THAT SWEPT ACROSS LONG ISLAND AND UP TO MASSACHUSETTS THE INSURANCE INDUSTRY WOULD HAVE PAID OUT 60 BILLION TO 80 BILLION IN CLAIMS THE INSURANCE INDUSTRY IS DEEPLY CONCERNED ABOUT A REPEAT OF THE 1938 STORM SAID GENERAL RE'S MR LUBY 9310010015 931001 BRITAIN'S BASS SEES BREWERY PRICES UNDER PRESSURE SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH BREWER AND HOTEL OPERATOR BASS PLC JOINED THE RANKS OF COMPANIES THAT AREN'T EXPECTING VERY MUCH FROM THE MEEK ECONOMIC RECOVERY IN THE UNITED KINGDOM CONDITIONS WILL REMAIN HIGHLY COMPETITIVE SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IAN PROSSER SPEAKING AT AN ANALYSTS MEETING PRICES IN THE BREWING INDUSTRY HE SAID WILL BE KEPT DOWN BY EXCESS CAPACITY AND LOW INFLATION MR PROSSER SAID BASS PLANNED TO STAY AHEAD BY CUTTING COSTS FOR THE NEXT TWO YEARS HE SAID THE COMPANY WILL REINVEST ANY UNDERLYING PROFIT INCREASE IN BASS BREWERS TO CUT COSTS THE COMPANY WAS MORE OPTIMISTIC ABOUT ITS LEISURE OPERATIONS WHICH HAVE CONTINUED TO TRADE STRONGLY WITH TOTAL REVENUES AHEAD IN REAL TERMS IN THE SECOND HALF BASS OPERATES MOVIE THEATERS AND THE HOLIDAY INN HOTEL CHAIN BASS BREWERS HAS SEEN VOLUME INCH UP 05 AGAINST AN OVERALL MARKET THAT HAS SHRUNK BY 2 THE COMPANY SAID BAD WEATHER IN JULY AND AUGUST AND HEAVY COMPETITION HAVE HURT ITS SOFTDRINK VENTURE BRITVIC SOFT DRINKS TAKING INTO ACCOUNT LAYOFF EXPENSES AND OTHER SIMILAR MEASURES COSTING 6 MILLION THE UNIT'S OPERATING PROFIT IS RUNNING 20 BELOW 1992 FIGURES BASS SAID BASS LEISURE HAS SEEN ITS HOLIDAY INN CHAIN PERFORM WELL AHEAD OF 1992 IN OCCUPANCY AND ROOM RATES IN THE AMERICAS IN WESTERN EUROPE HOWEVER CONDITIONS IN THE HOTEL INDUSTRY HAVE BEEN DIFFICULT WITH OCCUPANCY AND AVERAGE ROOM RATES BELOW THOSE OF 1992 9310010014 931001 INTERNATIONAL FERRUZZI REPORTS OPERATING PROFIT ROSE 69 IN HALF BY MAUREEN KLINE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN FERRUZZI FINANZIARIA SPA AND ITS MAIN INDUSTRIAL HOLDING MONTEDISON SPA ANNOUNCED UPBEAT OPERATING RESULTS FOR THE FIRST HALF THOUGH THE COMPANIES DELAYED REPORTING DEBT AND INTEREST LEVELS UNTIL A RESTRUCTURING PLAN IS DISCLOSED THUS A PICTURE OF PROBABLE LOSSES FOR THE HALF ISN'T YET AVAILABLE FERRUZZI THE TROUBLED ITALIAN AGROCHEMICALS GIANT SAID THAT MONTEDISON'S OPERATING PROFIT DOUBLED FROM THE YEAREARLIER PERIOD TO 784 BILLION LIRE 498 MILLION AND THAT ITS OWN CONSOLIDATED OPERATING PROFIT HAD RISEN 69 TO 722 BILLION LIRE MONTEDISON'S REVENUE ROSE 26 TO 10287 TRILLION LIRE WHILE FERRUZZI'S CONSOLIDATED REVENUE ROSE 19 TO 11489 TRILLION LIRE THE FINANCIAL COMMUNITY IS WAITING FOR DETAILS OF A RESTRUCTURING PLAN FOR THE DEBTSTRAPPED GROUP WHICH IS UNDER MANAGEMENT BY CREDITOR BANKS FERRUZZI CHAIRMAN GUIDO ROSSI TOLD THE FERRUZZI AND MONTEDISON BOARDS YESTERDAY THAT THE RESTRUCTURING PLAN WHICH IS ALMOST READY WILL MEAN AN IMPORTANT EASING OF THE HEAVY DEBT BURDEN MR ROSSI TOLD FERRUZZI SHAREHOLDERS IN LATE AUGUST THAT THE RESTRUCTURING PLAN WOULD INCLUDE A CAPITAL INCREASE ASSET SALES AND FINANCIAL CONSOLIDATION SPECULATION ABOUNDS AS TO WHETHER CREDITOR BANKS WILL BE WILLING TO SWAP DEBT FOR EQUITY FORGO SOME INTEREST PAYMENTS OR BOTH ONLY THE INDUSTRIAL RESULTS WERE MADE AVAILABLE BUT SAID ONE ANALYST NOW THERE'S A LIGHT OF HOPE THERE'S THE POSSIBILITY THE COMPANY CAN SUCCEED AND THAT MEANS THE BANKS WILL PROBABLY BE FAVORABLE TO ACCEPTING LESS INTEREST PAYMENTS AND TAKING SOME OF THE COMPANY'S EQUITY CAPITAL 9310010013 931001 MARKETING & MEDIA THREE DIET FIRMS SETTLE FALSEAD CASE TWO OTHERS VOW TO FIGHT FTC CHARGES BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THREE MAJOR DIETPROGRAM COMPANIES SETTLED FEDERAL FALSEADVERTISING CHARGES BY AGREEING TO PUBLICIZE THAT MOST WEIGHT LOSS IS TEMPORARY AND TO DISCLOSE HOW LONG THEIR CUSTOMERS KEPT OFF THE WEIGHT THEY LOST TWO OTHER MAJOR DIET CONCERNS HOWEVER SAID THEY WOULD FIGHT THE CHARGES WHICH RESULTED FROM A LENGTHY INVESTIGATION BY THE FEDERAL TRADE COMMISSION AGREEING TO SETTLE WERE DIET CENTER INC NUTRI/SYSTEM INC AND PHYSICIANS WEIGHT LOSS CENTERS INC THE AGREEMENT REQUIRES COMPANIES TO BACK UP THEIR WEIGHTLOSS CLAIMS WITH SCIENTIFIC DATA AND TO SUPPORT CLAIMS THAT THEIR CUSTOMERS STAY TRIM OVER A LONG PERIOD BY MONITORING A GROUP OF THEM FOR TWO YEARS WEIGHT WATCHERS INTERNATIONAL INC A UNIT OF HJ HEINZ CO AND JENNY CRAIG INC DIDN'T SETTLE WEIGHT WATCHERS CHAIRMAN CHARLES BERGER SAID THAT BECAUSE THE COMPANY HAS NEVER MISLED THE PUBLIC A COURT FIGHT IS A MATTER OF PRINCIPLE RONALD GEREVAS PRESIDENT OF JENNY CRAIG SAID HIS COMPANY'S ADS HAVE ALWAYS BEEN FORTHRIGHT AND HE CRITICIZED THE FTC FOR CHARGING INDIVIDUAL COMPANIES INSTEAD OF ADOPTING INDUSTRYWIDE ADVERTISING STANDARDS FOR DIET PROGRAMS WEIGHT WATCHERS IS BASED IN JERICHO NY AND JENNY CRAIG HAS HEADQUARTERS IN DEL MAR CALIF THE FTC COMPLAINTS SAID NONE OF THE FIVE COMPANIES HAD SUFFICIENT EVIDENCE TO BACK UP CLAIMS THAT THEIR CUSTOMERS ACHIEVED THEIR WEIGHTLOSS GOALS OR MAINTAINED THE LOSS THE AGENCY ALSO CHARGED THE COMPANIES WITH MISLEADING CONSUMERS ABOUT THE COST OF THEIR PROGRAMS AND HOW QUICKLY THEY COULD LOSE WEIGHT AND BY CLAIMING THEIR PROGRAMS WERE SUPERIOR TO THEIR COMPETITORS THE COMMISSION SAID NUTRI/SYSTEM BLUE BELL PA PHYSICIANS WEIGHT LOSS CENTERS AKRON OHIO AND JENNY CRAIG DIDN'T ADEQUATELY DISCLOSE ADDITIONAL EXPENSES SUCH AS FOR SPECIAL FOODS THAT WEREN'T INCLUDED IN THE ADVERTISED PRICE OF THEIR PROGRAMS DIET CENTER OF PITTSBURGH PHYSICIAN'S NUTRI/SYSTEM AND JENNY CRAIG ALSO WERE ACCUSED OF FALSELY CLAIMING THAT THEIR CUSTOMERS LOST WEIGHT WITHIN A CERTAIN AMOUNT OF TIME IN ADDITION THE FTC ALLEGED THAT WEIGHT WATCHERS CLAIMED ITS PROGRAM WAS SUPERIOR TO OTHER PROGRAMS WITHOUT PROVIDING EVIDENCE TO SUPPORT THE STATEMENT AND THAT NUTRI/SYSTEM FALSELY CLAIMED ITS CUSTOMERS LOST 29 MORE WEIGHT THAN DIETERS ON OTHER PROGRAMS THE SETTLEMENT REQUIRES THAT ADVERTISEMENTS FOR THE DIET PROGRAMS INCLUDE PROMINENT DISCLOSURES AND GIVE THE AVERAGE WEIGHTLOSS MAINTAINED BY CUSTOMERS IF THE COMPANIES USE TESTIMONIALS FROM SATISFIED CUSTOMERS THEY MUST REPRESENT THE AVERAGE CUSTOMER'S EXPERIENCE OR EXPLAIN THAT THE EXAMPLE ISN'T TYPICAL THE INVESTIGATION OF THE COMPANIES MAJOR PLAYERS IN A 2 BILLION INDUSTRY CAME TO LIGHT IN MARCH WHEN THE FTC REJECTED A REQUEST TO ISSUE INDUSTRYWIDE ADVERTISING STANDARDS WEIGHT WATCHERS STRONGLY PROTESTED THE FTC ACTION MR BERGER SAID THE COMPANY HAS NEVER PROMISED PERMANENT WEIGHT LOSS AND STRESSES THE NEED TO STICK WITH THE PROGRAM IN A STATEMENT DIET CENTER'S PRESIDENT DENNIS BROWN REFERRED TO FLYBYNIGHT COMPANIES THE FTC SHOULD BE INVESTIGATING INSTEAD OF THE LARGER COMPANIES HE SAID HIS COMPANY CONTINUES TO SUPPORT INDUSTRYWIDE RULES AND PHYSICIANS WEIGHT LOSS CENTERS WITHOUT ADMITTING WRONGDOING SAID IT HAS FOLLOWED THE SPIRIT OF THE FTC ORDER FOR THE PAST FEW YEARS JOSEPH DIBARTOLOMEO VICE PRESIDENT OF SCIENTIFIC AFFAIRS AT NUTRI/SYSTEM SAID WE THOUGH THE SETTLEMENT WAS GOOD FOR THE CONSUMER IT IS GOOD THAT THE INDUSTRY HAS SOME STANDARDS TO FOLLOW IN ADVERTISING CLAIMS WE ARE IN FAVOR OF THOSE STANDARDS 9310010012 931001 FOREIGN EXCHANGE DOLLAR REBOUNDS AGAINST THE MARK YEN ON BUYING SPARKED BY ECONOMIC DATA BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK POSITIVE NEWS ABOUT THE US ECONOMY BREATHED NEW LIFE INTO THE DOLLAR THURSDAY PUSHING IT SHARPLY HIGHER AGAINST THE MARK AND THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16330 MARKS UP FROM 16136 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10618 YEN UP FROM 10505 YEN STERLING WAS TRADING AT 14975 DOWN FROM 15110 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10613 YEN AND AT 16320 MARKS TRADERS NOTED THAT SEVERAL ROSY REPORTS ON THE US ECONOMY RELEASED DURING THE NORTH AMERICAN MORNING HELPED SPARK NEW BUYING OF THE DOLLAR THAT BUYING THEY SAID HELPED REVERSE THE US CURRENCY'S RECENT LOSSES AGAINST THE MARK AS THE RUSSIAN CRISIS BEGAN TO WIND DOWN LOSSES THAT HAD LED SOME PLAYERS TO GIVE UP ON THE DOLLAR IT'S COMING BACK LIKE A PHOENIX SAID ROBERT RYAN MANAGER OF CORPORATE EXCHANGE AT BANK OF NEW YORK WHO NOTED THAT THE BUYING PUSHED THE DOLLAR THROUGH A KEY RESISTANCE LEVEL AT 16250 MARKS TRIGGERING TECHNICAL BUYING THAT SENT IT TO A HIGH OF 16363 MARKS BEFORE SLIPPING BACK TOWARD THE DAY'S END MR RYAN SAID THE KEY NUMBER AMONG THE SLEW OF DATA RELEASED THURSDAY WAS THE PURCHASING MANAGEMENT ASSOCIATION OF CHICAGO'S INDEX OF BUSINESS ACTIVITY WHICH ROSE TO 545 IN SEPTEMBER FROM 502 IN AUGUST A READING ABOVE 50 ON THE INDEX INDICATES AN EXPANSION IN THE MANUFACTURING SECTOR THE NUMBER WAS A LOT HIGHER THAN PEOPLE EXPECTED MR RYAN SAID THAT GOT EVERYBODY JUMPING THE CHICAGO INDEX IS CLOSELY WATCHED FOR INDICATIONS OF THE BROADER NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX WHICH IS DUE FOR RELEASE FRIDAY OTHER ECONOMIC REPORTS RELEASED THURSDAY ALSO CAME IN HIGHER THAN EXPECTED GIVING TRADERS ADDITIONAL OPTIMISM ABOUT THE US RECOVERY TRADERS SAID THE COMMERCE DEPARTMENT REPORTED THURSDAY THAT US PERSONAL INCOME ROSE 13 IN AUGUST COMPARED WITH EXPECTATIONS OF A 1 INCREASE AND WITH A 02 DECLINE IN JULY US PERSONAL CONSUMPTION EXPENDITURES ALSO ROSE 04 COMPARED WITH FORECASTS OF A 03 INCREASE WHILE NEW JOBLESS CLAIMS FELL BY 11000 TO 329000 IN THE WEEK ENDED SEPT 25 COMPARED WITH PREDICTIONS OF A 5000 DECLINE DEALERS SAID THESE MORE POSITIVE REPORTS OVERSHADOWED NEWS THAT US NEWHOME SALES FELL 31 IN AUGUST COMPARED WITH A SURVEY OF ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT THAT PREDICTED AN INCREASE OF 49 AND WITH A DECREASE IN JULY OF 5 ONE OF THE THINGS THAT HAS HURT THE DOLLAR IN THE PAST IS THE MARKET'S PERCEIVED LACK OF GOOD ECONOMIC NEWS SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK IN NEW YORK WHO NOTED THAT STRONG DOLLAR BUYING EMERGED FOLLOWING THURSDAY'S REPORTS AND TRADERS ADDED THAT THE WEALTH OF POSITIVE ECONOMIC NEWS ABOUT THE US HAS BEGUN TO FOCUS SOME MARKET ATTENTION ON THE POOR HEALTH OF THE GERMAN ECONOMY WHICH IS STILL EXPECTED TO PRODUCE DISAPPOINTING ECONOMIC RESULTS FOR THE FORESEEABLE FUTURE IT'S A SHIFT IN ECONOMIC PERCEPTIONS THE GERMAN NUMBERS ARE GETTING A LITTLE BIT WEAKER AND THE US NUMBERS ARE GETTING A LITTLE BIT STRONGER MR RYAN SAID TRADERS SAID THE DOLLAR STILL FACES TOUGH RESISTANCE AT AROUND 16350 MARKS A LEVEL THE DOLLAR PIERCED BRIEFLY THURSDAY ON THE RUN UP BUT FAILED TO HOLD 9310010011 931001 TECHNOLOGY PACKARD BELL UNVEILS FIRST THREE ENTRIES INTO NOTEBOOK MARKET PACKARD BELL ELECTRONICS INC ANNOUNCED THREE NEW NOTEBOOK COMPUTERS THE FIRST RESULTS OF ITS JUNE ALLIANCE WITH ZENITH DATA SYSTEMS THE NEW MACHINES INCLUDING ONE LIGHTWEIGHT SUBNOTEBOOK MODEL MARK THE FIRST MAJOR PUSH FOR PACKARD BELL INTO ONE OF COMPUTING'S HOTTEST MARKETS THE CHATSWORTH CALIF COMPANY SAID IT WILL FOLLOW UP NEXT YEAR WITH A NEW LINE OF PORTABLE MACHINES INCLUDING NOTEBOOKS PENBASED COMPUTERS EVEN A HANDHELD DEVICE THE PUSH IS AIMED AT COVERING A WIDE GAP IN PACKARD BELL'S PRODUCT LINE THOUGH ANALYSTS SAY PORTABLE MACHINES ACCOUNT FOR ABOUT 15 OF TOTAL PC SALES AND ARE BY FAR THE INDUSTRY'S FASTEST GROWING SEGMENT THEY REPRESENT ONLY 4 OF PACKARD BELL'S BUSINESS MAL RANSOM THE COMPANY'S VICE PRESIDENT OF MARKETING SAID WITH THE POWER OF PORTABLE PCS INCREASING AND PRICES FALLING TO LEVELS THAT COULD BRING THE MACHINES MASSMARKET APPEAL THAT PACKARD BELL HAS PLANNED TO ENTER THE MARKET WITH A BIG MARKETING AND PROMOTIONAL EFFORT THE NOTEBOOKS PRICED BETWEEN 1500 AND 2200 ARE MADE BY ZENITH UNDER A PRIVATELABEL AGREEMENT ZENITH A UNIT OF FRANCE'S CIE DES MACHINES BULL BOUGHT A 199 INTEREST IN PACKARD BELL IN JUNE AND AGREED TO SUPPLY THE COMPANY WITH PORTABLE COMPUTERS IN RETURN PACKARD BELL AGREED TO WORK WITH ZENITH TO JOINTLY DESIGN AND MANUFACTURE DESKTOP MACHINES NO DESKTOP COMPUTERS STEMMING FROM THE DEAL HAVE YET BEEN ANNOUNCED SEPARATELY PACKARD BELL SAID IT HAS SIGNED AN AGREEMENT WITH OCEAN SOFTWARE LTD OF MANCHESTER ENGLAND FOR EXCLUSIVE RIGHTS TO BUNDLE THE JURASSIC PARK COMPUTER GAME IN ALL THE PCS IT SELLS TERMS OF THE DEAL WEREN'T DISCLOSED 9310010010 931001 LAW LEGAL BEAT MORE COURTS ARE FORCING COUPLES TO TAKE DIVORCEEDUCATION CLASS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL IN A DIVORCEEDUCATION CLASS FOR WOMEN LINDA ANDERSON LEARNED HOW TO RECOGNIZE HER CHILDREN'S UNSPOKEN FEARS WHY SHE SHOULDN'T USE HER KIDS TO SPY ON THEIR FATHER AND HOW TO DEVISE AMICABLE VISITATION SCHEDULES SEPARATELY IN A ROOMFUL OF MEN MS ANDERSON'S HUSBAND PARTICIPATED IN THE SAME THREESESSION 18HOUR PROGRAM COMPLETE WITH ROLEPLAYING EXERCISES MEANWHILE THEIR CHILDREN LEARNED BETWEEN GAMES INVOLVING BALLOONS AND GUMDROP TOWERS NOT TO WORRY AND HOW TO GET USED TO SLEEPING AT DIFFERENT HOUSES THE COURSES WERE PART OF A MANDATORY PROGRAM IN THE ANDERSONS' HOME CITY OF LOUISVILLE KY REFLECTIVE OF A BROADER NATIONAL MOVEMENT IN WHICH DIVORCE COURTS REQUIRE COUPLES TO TAKE CLASSES ON HOW TO GUIDE THEIR CHILDREN THROUGH THE BREAKUP NO CLASSES NO DIVORCE PAPERS WHERE CLASSES HAVEN'T BEEN MADE MANDATORY MANY OTHER JURISDICTIONS ARE INCREASINGLY OFFERING VOLUNTARY CLASSES THIS YEAR ALONE SCATTERED COUNTIES IN ILLINOIS GEORGIA INDIANA MISSOURI NEW YORK AND OHIO ADDED DIVORCE EDUCATION WHICH VARIES FROM 25MINUTE VIDEOTAPES TO 18HOUR SEMINARS THE INSPIRATION USUALLY COMES FROM JUDGES AND SOCIAL WORKERS WHO ARE SICK OF PARENTS MORE INTENT ON REVENGE AND MONEY THAN ON THEIR CHILDREN'S WELLBEING OFTEN PARENTS ARE SO WRAPPED UP WITH THEIR OWN FEELINGS THAT THEY HAVE NO INSIGHT AS TO HOW THEIR CHILDREN ARE FEELING SAID FAMILY COURT JUDGE VICTORIA MARKS HONOLULU HAWAII THINGS LIKE DADDY'S NOT PAYING ME ENOUGH MONEY' WHAT'S HAPPENING AT DADDY'S HOUSE WITH THE NEW GIRLFRIEND' WHAT'S HAPPENING AT MOMMY'S HOUSE WITH THE NEW BOYFRIEND' I THINK IT'S REAL COMMON WHAT PARENTS LEARN VARIES WIDELY BECAUSE MANY PROGRAMS ARE CUSTOMTAILORED WITH THE HELP OF A LOCAL UNIVERSITY OR NONPROFIT SOCIALSERVICE AGENCY THE CLASSES USUALLY COME WITH A LECTURE ON BASIC DIVORCE LAW AND COURT PROCEDURES IN JUDGE MARKS'S COURT FOR EXAMPLE THE LESSONS ABOUT HOW DIVORCED PARENTS SHOULD BEHAVE IN FRONT OF THEIR CHILDREN TAKE ABOUT 15 MINUTES AND ARE SANDWICHED BETWEEN TALKS ON SETTLEMENTS AND MEDIATION LIKE MOST OF THE PROGRAMS THE HONOLULU COURT'S CLASSES ONLY APPLY TO PARENTS IN CONTRAST THE LOUISVILLE PROGRAM INVOLVES THE ENTIRE FAMILY IN A MORE EXTENSIVE PROGRAM CHILDREN BETWEEN EIGHT AND 12 YEARS OF AGE ATTEND THEIR OWN LESSONS AN ARRANGEMENT THAT THE PROGRAM'S DIRECTOR JOE H BROWN CONSIDERS THE CORNERSTONE OF THE PROGRAM THE KIDS LEARN DIVORCERELATED COPING TASKS THAT RESEARCH SAYS THEY NEED TO LEARN IN ORDER TO ADJUST SAID DR BROWN A FAMILYTHERAPY PROFESSOR AT THE UNIVERSITY OF LOUISVILLE CHILDREN NEED TO LEARN FOR INSTANCE THAT THE DIVORCE IS REAL AND PERMANENT THEY SHOULD KNOW HOW TO SEVER THEMSELVES FROM THEIR PARENTS' CONFLICTS DR BROWN SAID AND COPE WITH FEELINGS OF LOSS OTHER COUNTIES OFFER THEIR OWN VARIATIONS OF THE CLASSES WHICH RANGE IN COST FROM FREE TO MORE THAN 50 A PERSON SOME COURTS SEND ONLY THE MOST BITTER AND IRASCIBLE COUPLES TO THE CLASSES IN NEW YORK WHERE MATRIMONIAL LAWYERS ARE UNDER INCREASED SCRUTINY THE CLASSES INCLUDE TIPS ON DEALING WITH DIVORCE ATTORNEYS NOT EVERYONE GOES HAPPILY IN FACT EDUCATORS COMMONLY ALLOT TIME AT THE BEGINNING OF CLASS FOR PEOPLE TO GRIPE ABOUT HAVING TO ATTEND AT FIRST I WAS REALLY APPREHENSIVE ABOUT IT SAID MS ANDERSON A HOSPITAL ADMINISTRATOR WHOSE 14YEAR MARRIAGE BROKE UP IN JULY I THOUGHT IT WOULD BE A WASTE OF TIME BECAUSE IT WAS COURTMANDATED BUT HER SON AND DAUGHTER MADE FRIENDS IN THEIR GROUP AND BECAME MORE TALKATIVE ABOUT THEIR FEELINGS AND I FIND MYSELF STILL DRAWING ON IT A MONTH LATER SHE SAID ALTHOUGH SHE IS TEMPTED TO POUR OUT HER EMOTIONS TO HER NINEYEAROLD DAUGHTER FOR INSTANCE THE CLASS TAUGHT HER THAT A NINEYEAROLD JUST CAN'T HANDLE THAT MS ANDERSON SAID I THINK IT HELPED PUT THINGS IN PERSPECTIVE HER DAUGHTER LAUREN NOTICED THE CHANGE IN HER PARENTS AFTERWARD MY DAD HE DOESN'T ACT AS MEAN ANYMORE NOR DOES MY MOM AND THEY DON'T FIGHT REALLY SHE SAID SHYLY BESIDES THE LOUISVILLE COURT SOME DIVORCE COURTS IN ILLINOIS NEW JERSEY OHIO GEORGIA AND ELSEWHERE MANDATE THE LESSONS IN MOST PLACES PARENTS ATTEND SIDE BY SIDE SOMETIMES RESENTFULLY BUT IN SOME COUNTIES THEY ATTEND SEPARATELY HAVING THE DIVORCING COUPLES ATTEND TOGETHER CAN PREVENT SPATS OVER WHAT THE INSTRUCTORS REALLY SAID BUT SOMETIMES FIGHTS ERUPT MIDLESSON AND IN NASSAU COUNTY NY OFFICIALS STOPPED REQUIRING JOINT ATTENDANCE AFTER SEEING BATTERED WIVES COWER IN THE BACK OF THE CLASSROOM TO AVOID THEIR HUSBANDS' EYES A LOT OF PARENTS SAY AFTERWARD THAT THEY MOST ENJOYED MINGLING WITH OTHER DIVORCING COUPLES UP UNTIL THEN I HAD FELT PRETTY ISOLATED SAID JAY GREENBAUM A NEW YORK FINANCIALSERVICES ADVISER WHO RECENTLY DIVORCED HIS WIFE OF 12 YEARS MY THING WAS PRETTY VICIOUS BUT THERE WERE OTHER PEOPLE WHO WERE WORSE OFF THAN I WAS DO THE PROGRAMS ACTUALLY HELP THE CHILDREN COURTS LACK HARD DATA ALTHOUGH KENTUCKY COURTS ARE WORKING ON A STUDY COMPARING CHILDREN WHO HAVE GONE THROUGH THE PROGRAM WITH THOSE WHO HAVEN'T SO FAR CHILDREN WHO TOOK THE LESSONS RATE THEMSELVES HIGHER ON SELFESTEEM TESTS NONETHELESS SOME COURTADMINISTRATION SPECIALISTS AND WOMEN'S GROUPS HAVE QUALMS THIS IS A VERY VALUABLE TOOL BUT IT'S ALSO A DANGEROUS TOOL IF NOT USED CORRECTLY SAID JEFFREY A KUHN DIRECTOR OF THE NATIONAL FAMILY COURT RESOURCE CENTER RENO NEV WHAT HAPPENS WITH THE CLASSES IS A PARENT MIGHT FEEL LIKE GEEZ I'D RATHER JUST LET A FEW THINGS GO THAN MAKE THINGS HARD ON MY CHILDREN' MR KUHN SAID FOR INSTANCE IT'S POSSIBLE THAT ONE PARENT GENERALLY THE MOTHER WOULD ACCEPT A LOUSY DIVORCE SETTLEMENT SIMPLY TO AVOID HURTING THE CHILDREN EMOTIONALLY HE SAID BUT IN THE LONG RUN FINANCIAL STABILITY IS BEST FOR THE CHILDREN MR KUHN SAID PEOPLE SHOULD HAVE THE RESOURCE OF LEGAL ADVICE AT ALL TIMES AND KNOW ALL THEIR RIGHTS AND REMEDIES INVESTIGATIVE BOOK AUTHORS HAVE THE SAME CONSTITUTIONAL PROTECTIONS AS OTHER JOURNALISTS IN REFUSING TO TURN OVER THEIR NOTES IN COURT A FEDERAL APPEALS COURT SAID THE US APPEALS COURT IN SAN FRANCISCO ALSO RULED THAT SUCH PROTECTIONS APPLY EVEN WHEN THE AUTHOR OR JOURNALIST DIDN'T PROMISE CONFIDENTIALITY TO THE SOURCE OTHER FEDERAL APPEALS COURTS HAVE RULED SIMILARLY THE RULING REVERSES A TRIAL JUDGE'S DECISION IN A CASE INVOLVING RONALD WATKINS WHO IS WRITING A BOOK ABOUT A FAMILY FEUD OVER CONTROL OF AMERCO'S UHAUL INTERNATIONAL INC PHOENIX THAT BATTLE HAS PITTED THE FOUNDER OF THE COMPANY LEONARD SHOEN AGAINST TWO OF HIS SONS MARK AND EDWARD SHOEN THE TWO SONS SUED THEIR FATHER FOR DEFAMATION AFTER HE MADE PUBLIC STATEMENTS SUGGESTING THAT THE FAMILY FEUD MIGHT BE LINKED TO THE BRUTAL 1990 MURDER OF EVA BERG SHOEN THE WIFE OF LEONARD SHOEN'S OLDEST SON MR WATKINS ISN'T A DEFENDANT IN THE DEFAMATION SUIT BUT HE HAD INTERVIEWED THE FATHER THE TRIAL JUDGE ORDERED MR WATKINS TO TESTIFY AND TURN OVER ANY MATERIALS HE HAD RELATING TO THE FATHER'S COMMENTS ABOUT THE MURDER AND THE SHOEN FAMILY IN OVERTURNING THAT ORDER THE APPELLATE PANEL SAID THE SONS COULDN'T SEEK INFORMATION FROM THE AUTHOR UNTIL THEY HAD EXHAUSTED ALL REASONABLE ALTERNATIVE MEANS FOR OBTAINING THE INFORMATION SUCH AS INTERVIEWING THEIR FATHER THE RULING WAS THE SECOND DECISION ON REPORTERS' PRIVILEGE IN RECENT DAYS LAST WEEK THE SECOND US CIRCUIT COURT OF APPEALS MADE IT SOMEWHAT MORE DIFFICULT FOR JOURNALISTS IN NEW YORK VERMONT AND CONNECTICUT TO PROTECT THEIR NOTES FROM USE IN CRIMINAL CASES 9310010009 931001 EMERGENCY PROGRAM FOR AID TO JOBLESS EXPIRES TOMORROW WASHINGTON THE EMERGENCY JOBLESS AID PROGRAM WILL EXPIRE TOMORROW AFTER A MEASURE TO EXTEND THE PROGRAM WAS BLOCKED BY HISPANIC DEMOCRATS IN THE HOUSE WHO PROTESTED A PROVISION AIMED AT IMMIGRANTS THE HOUSE WILL TRY AGAIN TO PASS THE MEASURE NEXT WEEK AFTER LOOKING FOR A MORE AMENABLE WAY TO DO THIS SAID MAJORITY LEADER RICHARD GEPHARDT D MO WHILE SOME JOBLESS CLAIMS COULD BE DELAYED SUPPORTERS SAID THE LEGISLATION WOULD APPLY RETROACTIVELY SO THAT NO ONE WOULD LOSE BENEFITS JUST BEFORE THE HOUSE WAS TO TAKE UP THE BILL SEVERAL HISPANIC LAWMAKERS OBJECTED TO A PROVISION INTENDED TO COVER 330 MILLION OF THE MEASURE'S 1 BILLION FIVEYEAR COST THE PROVISION WHICH THEY SAW AS PART OF A TREND TOWARD IMMIGRANTBASHING IN STATE AND NATIONAL POLITICS WOULD LENGTHEN TO FIVE YEARS FROM THREE YEARS THE AMOUNT OF TIME THAT A LEGAL IMMIGRANT WORKING IN THIS COUNTRY MUST WAIT BEFORE QUALIFYING FOR SUPPLEMENTAL SOCIAL SECURITY BENEFITS THE UNEMPLOYMENTCOMPENSATION BILL WHICH IS SLIGHTLY LESS GENEROUS THAN PRESIDENT CLINTON SOUGHT WOULD PROVIDE SEVEN OR 13 WEEKS OF BENEFITS DEPENDING ON A STATE'S JOBLESS RATE TO UNEMPLOYED WORKERS WHO HAVE EXHAUSTED STATE ASSISTANCE ADMINISTRATION AND CONGRESSIONAL SPONSORS HAVE STRUGGLED TO FINANCE THE MEASURE WITHOUT RAISING TAXES AND THEY DIDN'T KNOW YESTERDAY WHAT ALTERNATIVE COULD BE FOUND THE PROVISION FOR FUNDING THE BILL'S REMAINING 764 MILLION COST ALSO IS SOMEWHAT CONTROVERSIAL THE ADMINISTRATION PROPOSES TO SAVE THAT AMOUNT WITH A NEW EFFORT TO HELP THE UNEMPLOYED FIND JOBS BUT THE CONGRESSIONAL BUDGET OFFICE HAS DISPUTED THE PROJECTED SAVINGS 9310010007 931001 ATF TOP OFFICIALS TOLD DELIBERATE LIES ABOUT WACO RAID US REPORT CHARGES BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOP OFFICIALS OF THE FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS DELIBERATELY LIED ABOUT THE RAID OF THE BRANCH DAVIDIANS COMPOUND THAT COST FOUR AGENTS THEIR LIVES THE TREASURY DEPARTMENT CONCLUDED AFTER A FIVEMONTH INVESTIGATION AS A RESULT TREASURY SECRETARY LLOYD BENTSEN REMOVED FIVE ATF OFFICIALS FROM THEIR POSTS PENDING DISCIPLINARY ACTION MR BENTSEN SAID SOME ALLEGATIONS AGAINST THE OFFICIALS MAY BE REFERRED TO THE JUSTICE DEPARTMENT FOR POSSIBLE CRIMINAL ACTION HE ALSO SAID MORE MEMBERS OF THE AGENCY WILL FACE DISCIPLINARY MEASURES THE FEDERAL BUREAU OF INVESTIGATION THEN STEPPED IN OVERSEEING A 51DAY SIEGE THAT ENDED APRIL 19 WHEN AGENTS PUMPED TEAR GAS INTO THE COMPOUND AFTER A FEW HOURS CULT MEMBERS SET THE COMPOUND ON FIRE AND MORE THAN 71 PEOPLE DIED A JUSTICE DEPARTMENT REPORT OF THE FBI'S ACTIONS IS EXPECTED TO BE RELEASED NEXT WEEK AS IS A JUSTICE DEPARTMENTTREASURY REPORT ON HOW LAW ENFORCEMENT AGENCIES CAN DEAL WITH SIMILAR SITUATIONS MR BENTSEN SAID HE COULDN'T COMMENT ON THE JUSTICE DEPARTMENT REPORT BUT THAT HE HOPED IT WOULD BE AS CANDID AS THE TREASURY REPORT THE EXTENSIVELY DETAILED REPORT WAS HARDEST ON THE TOP ATF OFFICIALS WHO INSISTED THAT THE RAID SUPERVISORS DIDN'T KNOW THAT THE BRANCH DAVIDIANS WERE AWARE OF THE IMPENDING RAID DISREGARDING THE FAR MORE PERSUASIVE AND RAPIDLY GROWING EVIDENCE THAT THEIR ACCOUNT WAS FALSE ATF'S TOP MANAGERS UNIFORMLY SAID IN SUBSTANCE THAT ATF'S RAID COMANDERS HAD NOT KNOWN THAT THE ELEMENT OF SURPRISE HAD BEEN LOST BEFORE THEY MADE THE DECISION TO GO FORWARD THE TREASURY REPORT SAID THE REPORT STOPPED SHORT OF ACCUSING OUTGOING ATF DIRECTOR STEPHEN HIGGINS OF DELIBERATELY LYING ABOUT THE RAID BUT FAULTED HIM FOR RELYING TOO HEAVILY ON HIS TOP LAWENFORCEMENT OFFICIALS WHO WERE ACCUSED OF IGNORING EVIDENCE THAT CONTRADICTED THEIR STATEMENTS EARLIER THIS WEEK MR HIGGINS SAID HE WOULD RETIRE EFFECTIVE OCT 30 SAYING HE DISAGREED WITH SOME OF THE FINDINGS AND RECOMMENDATIONS IN THE REPORT MR BENTSEN NAMED A 26YEAR VETERAN OF THE SECRET SERVICE DIRECTOR JOHN MAGAW AS ACTING DIRECTOR OF THE ATF MR BENTSEN PICKED GUY CAPUTO TO BE ACTING DIRECTOR OF THE SECRET SERVICE MR BENTSEN ALSO NAMED THE SPECIAL AGENT IN CHARGE OF THE ATF'S NEW YORK OFFICE CHARLES THOMSON THE ACTING TOP LAWENFORCEMENT OFFICIAL AT THE ATF MR THOMSON OVERSAW THE ATF'S INVESTIGATION OF THE WORLD TRADE CENTER BOMBING WHICH CAME TWO DAYS BEFORE THE TEXAS RAID MR THOMSON SUCCEEDS DANIEL HARTNETT ONE OF THE OFFICIALS REMOVED YESTERDAY THE OTHERS PLACED ON ADMINISTRATIVE LEAVE WERE EDWARD CONROY MR HARTNETT'S TOP AIDE DAVID TROY THE ATF'S CHIEF OF INTELLIGENCE AND TWO SUPERVISORS OF THE HOUSTON OFFICE WHICH OVERSAW THE RAID MR HARTNETT AND MR CONROY HAVE SAID THEY INTEND TO RETIRE FROM THE ATF THEY AND MR TROY COULDN'T BE REACHED FOR COMMENT MR BENTSEN SAID THE TREASURY'S FINDINGS SHOULDN'T BE A FACTOR IN CONSIDERING THE CLINTON ADMINISTRATION'S PROPOSAL TO MERGE THE ATF INTO THE JUSTICE DEPARTMENT BUT HE SAID HE ISN'T OPPOSED TO EXAMINING MERGER POSSIBILITIES TO SEE IF YOU CAN SAVE THE TAXPAYERS SOME MONEY AND SEE IF YOU CAN PRESERVE THE EXPERTISE OF THE ATF 9310010004 931001 EUROPE'S MARKETS SCREAM FOR ICE CREAM MOSTLY IN THE PREMIUM PRODUCT LINES BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL EUROPE IS BECOMING THE LAND OF THE ULTRA RICH SALES OF PREMIUM ICE CREAM PRODUCTS LONG POPULAR IN THE US ARE BEGINNING TO CLIMB ACROSS THE CONTINENT BENEFITING AMERICAN AND EUROPEAN MANUFACTURERS ALIKE IN SPAIN SALES OF ICE CREAM AND FROZEN DESSERTS JUMPED 34 WHILE SUPERMARKET SALES OF FROSTY TREATS IN ITALY GREW BY 10 BELGIAN SHOPPERS ALSO SPENT SIGNIFICANTLY MORE ON ICE CREAM THAN IN PREVIOUS YEARS SALES FOR THE SUMMER ROSE 23 THE WHOLE MARKET IS MOVING UPWARD BECAUSE OF HIGHQUALITY INNOVATIONS SAYS BARBARA DUFRENE SECRETARY GENERAL OF THE ASSOCIATION OF THE EUROPEAN ICE CREAM INDUSTRIES IN PARIS TIMES ARE SO TOUGH PEOPLE ARE SAYING LET'S GIVE OURSELVES A TREAT EVEN AT PREMIUM PRICES SALESHEATING INNOVATIONS INCLUDE RICH GOURMET DESSERTS AS WELL AS COLD SNACKS RANGING FROM FROZEN VERSIONS OF POPULAR CANDY BARS TO FRUITFLAVORED ICES ON A STICK AND SOME LOWCALORIE ICE CREAMS ALL SUPPORTED BY THE BIG MARKETING BUDGETS OF EUROPE'S LARGEST FOOD COMPANIES IN ITALY NEW CHAINS OF UPSCALE ICE CREAM PARLORS ARE OFFERING GOURMET ALTERNATIVES TO THE FRESH ICE CREAM USUALLY SOLD IN CAFES OR ON THE STREET BUT THE RISING NUMBER OF LARGE SUPERMARKETS WITH LONG ROWS OF FREEZERS HAS ALSO BOOSTED THE POPULARITY OF TAKEHOME ICE CREAM AS A RESULT FROZEN VERSIONS OF TRADITIONAL ITALIAN DESSERTS SUCH AS TIRAMISU HAVE TURNED INTO BESTSELLERS IN ITALIAN SUPERMARKETS IN SPAIN NEW ICE CREAMS SUCH AS GRAND METROPOLITAN PLC'S HAAGENDAZS BRAND UNILEVER NV'S MAGNUM LINE OR MARS INC'S FROZEN CHOCOLATE BARS ARE SPURRING CONSUMERS' APPETITE FOR ICE CREAM IN GENERAL PREMIUM BRANDS WEREN'T REALLY DEVELOPED HERE BEFORE SAYS CARLOS COSTA A MANAGEMENT CONSULTANT WITH BOSTON CONSULTING GROUP INC IN MADRID AND WE'RE STARTING FROM A VERY LOW BASE IN FACT ICE CREAM HAS NEVER REACHED THE POPULARITY OF CAKE OR TAPAS IN SPAIN DESPITE THE WARM WEATHER SPANISH ICECREAM SALES ARE BARELY HIGHER THAN THOSE OF RAINY BELGIUM WHICH HAS ONLY A THIRD OF SPAIN'S POPULATION WITH WHAT IT CALLS TASTE EXPLOSIONS AND REINVENTED RULES OF ICE CREAM HAAGENDAZS HAS BEEN IN THE FOREFRONT OF PREMIUM ICE CREAM MAKERS IN JUNE THE COMPANY LAUNCHED ITS NEW EXTRAAS LINE ON THE FRENCH MARKET WHICH IS ALSO AVAILABLE IN THE US CALLED CAPPUCHINO COMMOTION COOKIE DOUGH DYNAMO AND CARAMEL CONE EXPLOSION THE THREE MIXTURES CONTAIN BITESIZED PIECES OF COOKIE DOUGH AND CARAMEL THEY ARE GOING ON SALE IN 12 OTHER EUROPEAN COUNTRIES THIS MONTH EARLIER THIS YEAR UNILEVER INTRODUCED ITS MIRAGE LINE OF PREMIUM FROZEN DESSERTS IN A 500MILLILITER JAR COMPARABLE TO HAAGENDAZS'S CONTAINER AND GERMANY'S SCHOELLER LEBENSMITTEL GMBH RECENTLY EXTENDED ITS MOEVENPICK LINE WITH CREAMY PLUM AN ICE CREAM WITH FRUIT CHUNKS IN THE COMING WINTER THE COMPANY IS LAUNCHING A GINGERBREAD VERSION WITH CINNAMONSPICED VANILLA ICE CREAM AND GINGERBREAD CRUMBS ANALYSTS PREDICT THERE'S ROOM FOR MORE SUPERPREMIUM ICE CREAM IS STILL A HUGE GROWTH MARKET SAYS ALLYSON STEWART AT THE MANAGEMENT CONSULTANCY ALLYSON ASSOCIATES INTERNATIONAL IN LONDON THERE STILL ISN'T A LOT OF VARIETY FLAVORWISE AND FREEZER SPACE IS STILL LIMITED SHE EXPLAINS NOVEL THINGS GET CONSUMERS TO THINK ABOUT ICE CREAM MORE THAN THEY OTHERWISE WOULD SAYS BOB EAGLE A SPOKESMAN FOR MARS IN 1989 MARS LAUNCHED A FROZEN VERSION OF THE MARS BAR FOLLOWED A YEAR LATER BY SNICKERS MILKY WAY AND BOUNTY ICE CREAM BARS AS WELL AS A FROZEN VERSION OF TWIX EARLIER THIS YEAR MARS SAYS EXTENDING WELLESTABLISHED CANDY BAR BRANDS WITH NEW ICE CREAM FORMATS GAVE IT AN AIR OF INNOVATION AND BOOSTED THE SOCALLED IMPULSE SEGMENT OF THE ICE CREAM MARKET IN FACT MARS'S NEW ICE CREAM VENTURE SET OFF A HOST OF SIMILAR LAUNCHES AMONG THEM MAGNUM A CHOCOLATE ICE CREAM ON A STICK MADE BY UNILEVER THIS PRODUCT LAUNCHED OUTSIDE HOLLAND IN 1991 HAS ADDED A WHITE CHOCOLATE AND AN ALMOND VERSION TO THE ORIGINAL MAGNUM FLAVOR BUT MARS SAYS MAGNUM'S SUCCESS IS UNFAIRLY BOOSTED BY EXCLUSIVE CONTRACTS UNILEVER HAS WITH MANY EUROPEAN RETAILERS IN GERMANY AND AUSTRIA FOR INSTANCE RETAILERS WITH FREEZING CABINETS SPONSORED BY UNILEVER MAY NOT SELL COMPETITORS' PRODUCTS IN THE FREEZERS AND AREN'T ALLOWED TO ACCEPT FREE FREEZERS AND MAINTENANCE SERVICES FROM OTHER ICE CREAM MANUFACTURERS SUPPLYING SPREADOUT FOOD STANDS IN ZOOS OR PUBLIC SWIMMING POOLS IS EXPENSIVE SAYS PETER LIPS AN ATTORNEY FOR UNILEVER IN HAMBURG IF THREE OTHERS ARE SUPPLYING THEM AS WELL IT'S NOT WORTH IT ANYMORE UNILEVER WHICH CONTROLS ROUGHLY 40 OF THE EUROPEAN ICE CREAM MARKET IS PROTESTING A EUROPEAN COMMUNITY COMMISSION ORDER TO SUSPEND ITS EXCLUSIVITY CLAIMS ON EUROPEAN RETAILERS BUT A FINAL DECISION BY THE EUROPEAN COURT OF JUSTICE ISN'T EXPECTED BEFORE NEXT YEAR WHILE HOT SUMMERS GENERALLY BOOST ICE CREAM SALES CONSUMPTION IS NOT AUTOMATICALLY LOWER IN COOLER CLIMATES WITH PER CAPITA CONSUMPTION OF 119 LITERS A YEAR SWEDEN HOLDS THE EUROPEAN ICE CREAM CONSUMPTION RECORD FOLLOWED BY FINLAND DENMARK AND IRELAND BUT HIGHFAT GOODIES AREN'T THE ONLY PRODUCTS WITH BRIGHT FUTURES LOWCALORIE ICE CREAMS AND FROZEN YOGURTS HAVE SO FAR BEEN MOST SUCCESSFUL IN BRITAIN BUT INDUSTRY EXPERTS SAY THEY WILL BOOST CONTINENTAL ICE CREAM SALES AS WELL FOR INSTANCE NESTLE SA RECENTLY LAUNCHED A FROZEN YOGURT UNDER ITS CHAMBOURCY BRAND FROZEN YOGURT IS GOING TO BE VERY IMPORTANT SAYS MS DUFRENE AT THE EUROPEAN INDUSTRY ASSOCIATION IN THE US IT WAS AMONG THE FASTESTGROWING PRODUCTS IN THE LAST TWO YEARS 9310010003 931001 ECONOMY WHITE HOUSE POISED TO OFFER ENERGY INITIATIVE PLAN CALLS FOR TAX INCENTIVES TO BOOST NATURAL GAS DOMESTIC OIL INDUSTRY BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PREPARING TO PROPOSE TAX INCENTIVES AND OTHER MEASURES IN AN EFFORT TO STIMULATE THE DOMESTIC OIL AND NATURAL GAS INDUSTRIES THE PROPOSALS ACCORDING TO A PARTIAL DRAFT OBTAINED BY THE WALL STREET JOURNAL INCLUDE EXPANDING TAX BREAKS AIMED AT ENCOURAGING GAS AND OIL EXPLORATION INCREASING RESEARCH AND DEVELOPMENT FUNDS AND REDUCING REGULATORY BARRIERS AT BOTH THE FEDERAL AND STATE LEVELS THE ADMINISTRATION'S AIM IN PART APPEARS TO BE TO SOOTHE THE OIL INDUSTRY WHICH HAS COMPLAINED THAT THE ADMINISTRATION IS MORE FOCUSED ON CONSERVATION AND PROMOTING RENEWABLE FUELS THAN ON BOOSTING DOMESTIC OIL PRODUCTION INDUSTRY OFFICIALS WERE ALL BUT SHUT OUT OF THE NEGOTIATIONS LEADING TO MR CLINTON'S PROPOSED TAX ON NEARLY ALL FORMS OF ENERGY BASED LARGELY ON HEAT CONSUMPTION AS MEASURED IN BRITISH THERMAL UNITS BUT FIERCE LOBBYING EFFORTS BY THE INDUSTRY HELPED TO QUASH THE BTU TAX AND REPLACE IT WITH A MILDER TRANSPORTATION TAX NOW THE CLINTON ADMINISTRATION IS EAGER TO SHOW ITS SYMPATHY FOR THE OIL INDUSTRY'S WOES THIS IS AN INDUSTRY THAT HAS LOST 450000 JOBS OVER THE LAST DECADE SAID AN ENERGY DEPARTMENT OFFICIAL HE SAID THE ENERGY INITIATIVES WOULD CREATE JOBS STIMULATE MARKETS FOR NATURAL GAS AND REDUCE DEPENDENCE ON FOREIGN OIL THE PARTIAL DRAFT A TABLE OF CONTENTS FOR THE REPORT THAT LISTS THE ENERGY INITIATIVE DOESN'T INDICATE THE PROJECTED COSTS OF THE PROPOSED INITIATIVES WHICH WERE ARRIVED AT THROUGH TALKS BETWEEN THE ENERGY AND TREASURY DEPARTMENTS AND OTHER EXECUTIVE BRANCH AGENCIES THE ENERGY DEPARTMENT IS EXPECTED TO ISSUE THE REPORT LATER THIS MONTH AND A DEPARTMENT SPOKESMAN WARNED THAT THE INITIATIVES STILL ARE BEING DEVELOPED AND THAT MANY OF THE ITEMS LISTED IN THE DRAFT ALREADY HAVE BEEN DROPPED BUT THE POLICY INITIATIVES INCLUDED IN THE DRAFT DOCUMENT GIVE A CLEAR SIGNAL THAT THE CLINTON ADMINISTRATION WANTS TO EASE BURDENS FACED BY THE OIL AND GAS INDUSTRIES THE DRAFT PROPOSALS INCLUDE CREATING TAX CREDITS TO STIMULATE NEW OIL AND GAS EXPLORATION AIMED SPECIFICALLY AT ENCOURAGING NEW EXPLORATION TECHNOLOGIES REDUCING REGULATORY AND LEGAL BARRIERS TO EXPORT OF OIL FROM ALASKA'S NORTH SLOPE WHICH IS NOW RESTRICTED LARGELY TO DOMESTIC USE ACCELERATING THE PROCESS FOR RECEIVING TAX DEDUCTIONS FOR GEOLOGICAL AND GEOPHYSICAL COSTS URGING STATES TO ELIMINATE REGULATIONS THAT INHIBIT THE USE OF NATURAL GAS IN VEHICLES FUNDING A RESEARCH PROGRAM AIMED AT EVERYDAY PROBLEMS OF SMALL INDEPENDENT OIL COMPANIES CREATING TAX INCENTIVES FOR OIL EXPLORATION ON THE OUTER CONTINENTAL SHELF PRINCIPALLY IN THE GULF OF MEXICO REMOVING NET INCOME LIMITATION FOR INDEPENDENT COMPANIES THAT CLAIM DEDUCTIONS UNDER THE PERCENTAGE DEPLETION PROGRAM CURRENTLY THESE DEDUCTIONS ARE CAPPED ACCORDING TO INCOME EXPANDING EXISTING CREDITS THAT ENCOURAGE ENHANCED OIL RECOVERY OR OIL EXPLORATION REQUIRING SOPHISTICATED METHODS SUCH AS STEAM INJECTION EXPANDING OR CONSIDERING EXPANSION OF THE ENERGY DEPARTMENT'S ROLE IN RESEARCH AND DEVELOPMENT ON COMBATING OIL SPILLS MANY OF THE DRAFT PROPOSALS SUCH AS ACCELERATING DEPRECIATION FOR CAPITALEQUIPMENT COSTS ASSOCIATED WITH ENVIRONMENTAL REGULATION WERE CONSIDERED BY THE BUSH ADMINISTRATION BUT NEVER BECAME LAW ALSO LISTED IN THE TABLE OF CONTENTS IS A PROPOSAL TO CREATE FLOOR PRICES FOR OIL AND GAS THROUGH AN OIL IMPORT FEE BUT THIS PROPOSAL HAS SINCE BEEN DROPPED AN ADMINISTRATION OFFICIAL SAID 9310010002 931001 ADMINISTRATION PANEL GEARS UP FOR SELECTION OF ENTERPRISE ZONES WASHINGTON THE CLINTON ADMINISTRATION PLANS BY THE MIDDLE OF NEXT SUMMER TO CHOOSE ITS FIRST BATCH OF COMMUNITIES TO BE DESIGNATED AS EMPOWERMENT ZONES OR ENTERPRISE COMMUNITIES A SENIOR WHITE HOUSE AIDE TOLD DOW JONES HE SAID HE DIDN'T KNOW HOW MANY COMMUNITIES WILL BE SELECTED AS PART OF THE FIRST GROUP THE ADMINISTRATION IS TO SELECT 104 COMMUNITIES BY THE END OF 1995 THE OFFICIAL SAID THE ADMINISTRATION HOPES IN THE NEXT MONTH OR SO TO PROVIDE COMMUNITIES WITH MORE INFORMATION ON HOW THE PROGRAM WILL WORK INCLUDING SELECTION CRITERIA SO THAT THE CITIES CAN SUBMIT APPLICATIONS BY NEXT SPRING ALL OF THE COMMUNITIES MUST BE CHOSEN BY THE END OF 1995 ACCORDING TO THE BUDGET BILL THAT PASSED CONGRESS IN AUGUST AND AUTHORIZED THE PROGRAM IN A SEPT 9 EXECUTIVE ORDER PRESIDENT CLINTON ESTABLISHED A COMMUNITY ENTERPRISE BOARD MADE UP OF SEVERAL CABINET OFFICERS TO WORK ON COMMUNITYDEVELOPMENT ISSUES AND TO FIND WAYS TO IMPLEMENT THE ENTERPRISE ZONE LEGISLATION THE DIRECTIVE ALSO ORDERED CABINET MEMBERS TO IDENTIFY FUNDS THAT COULD BE USED IN IMPLEMENTING THE ENTERPRISEZONE CONCEPT AND TO FIND WAYS TO CLEAR AWAY FEDERAL RULES THAT IMPEDE COMMUNITY DEVELOPMENT UNDER THE LEGISLATION THE ADMINISTRATION WILL DESIGNATE NINE SUPER ZONES CALLED EMPOWERMENT ZONES FIVE IN BIG CITIES ONE IN A MEDIUMSIZE CITY AND THREE IN RURAL AREAS TO SHARE 25 BILLION IN TAX INCENTIVES MOSTLY WAGE CREDITS TO ENCOURAGE THE HIRING OF ZONE RESIDENTS AND 720 MILLION IN SOCIALSERVICE GRANTS AN ADDITIONAL 95 AREAS 65 URBAN 30 RURAL WILL BE SELECTED AS ENTERPRISE COMMUNITIES ELIGIBLE FOR 280 MILLION IN GRANTS AND SPECIAL BOND RULES 9310010001 931001 CLINTON ECONOMIST SEES A TURNAROUND AFTER SUMMER LULL WASHINGTON ROBERT WESCOTT AN ECONOMIST WITH THE COUNCIL OF ECONOMIC ADVISERS SAID THAT THE ECONOMY IS PICKING UP MOMENTUM AFTER A SUMMER LULL MR WESCOTT SAID THAT SEPTEMBER APPEARS TO HAVE BEEN A PRETTY GOOD MONTH FOR RETAILERS AND MANY MANUFACTURERS PARTICULARLY CAR MAKERS PROBABLY ARE BUILDING UP INVENTORY TO MEET DEMAND WE ARE STARTING TO SEE A TURNAROUND IN THE ECONOMY HE SAID MR WESCOTT WOULDN'T GIVE THE ADMINISTRATION'S ESTIMATE FOR HOW FAST THE ECONOMY GREW IN THE THIRD QUARTER WHICH ENDED YESTERDAY BUT HE DID SAY THAT THE ESTIMATE IS FOR MORE GROWTH THAN THE 19 ANNUAL RATE IN THE SECOND WE HAD DECENT GROWTH IN THE THIRD QUARTER HE SAID THE ECONOMIST ALSO SAID THOUGH THAT GROWTH IN THE THIRD QUARTER WAS SLOWED BY FLOODING IN THE MIDWEST HE SAYS FLOODS KNOCKED ROUGHLY HALF A PERCENTAGE POINT OF ECONOMIC PERFORMANCE MR WESCOTT SAID NET EXPORTS PROBABLY WILL HURT THE ECONOMY THROUGH THE END OF THIS YEAR AND THROUGH THE MIDDLE OF 1994 BY THE END OF 1994 EXPORTS WILL BE A PLUS FOR THE ECONOMY HE SAID CAPITAL SPENDING IS LIKELY TO REMAIN QUITE STRONG THROUGH THE YEAR BUT PROBABLY WON'T RUN AT THE NEARLY 20 GROWTH RATE OF THE FIRST TWO QUARTERS HE SAID LOW INTEREST RATES HAVE GIVEN MANY COMPANIES THE CHANCE TO INVEST IN CAPITAL EQUIPMENT AT ATTRACTIVE PRICES MR WESCOTT SAID HE IS UNSURE WHETHER THE LOWEST MORTGAGE RATES IN 20 YEARS ARE FINALLY GIVING THE HOUSING SECTOR A BOOST HE SAID HE IS ENCOURAGED BY THE LARGE JUMP IN HOUSING STARTS DURING AUGUST BUT WHAT WE REALLY NEED IS TO SEE SUSTAINED GROWTH OF THAT KIND TO LET US KNOW THE SECTOR IS RESPONDING TO LOWER RATES 9310010147 930924 WORLD BUSINESS A SPECIAL REPORT THE WORLD'S 25 LARGEST SECURITIES FIRMS NOTE CAPITAL IS DEFINED AS OWNER'S EQUITY RESERVES MINORITY INTEREST PREFERRED STOCK AND LONGTERM DEBT ASSETS ARE CALCULATED NET OF CUSTODY SECURITIES SECURITIES BORROWED AND SECURITIES PURCHASED UNDER AGREEMENT TO RESELL 9310010081 930914 REVIEW & OUTLOOK EDITORIAL ASIDES BROADWAY MELODIES ANYONE WHO'S SHELLED OUT 60 TO SEE A BROADWAY MUSICAL HAS PROBABLY WONDERED WHY TICKET PRICES ARE AS HIGH AS A ELEPHANT'S EYE ONE REASON IS THE THEATRICAL UNIONS WHICH OFTEN MAKE EXPENSIVE DEMANDS ON PRODUCERS THE LATEST EXAMPLE IS THE BROADWAY MUSICIANS UNION WHOSE CONTRACT EXPIRED AT MIDNIGHT SUNDAY THE UNION HAS THREATENED TO STRIKE OVER THE PRODUCERS' ATTEMPT TO LOWER THE MINIMUM NUMBER OF UNION MUSICIANS REQUIRED FOR EACH SHOW FROM 2426 TO 1416 A STRIKE WOULD SHUT DOWN NINE MUSICALS AND DELAY 11 MORE SO FAR A STRIKE HAS BEEN AVERTED AND THE PHANTOM AND MISS SAIGON AND THE SPIDER WOMAN SING ON FOR THEATERGOERS WHO CAN AFFORD TO LISTEN SEE RELATED LETTER LETTERS TO THE EDITOR IT'S STILL BROADWAY'S BIGGEST HIT CAPITALISM WSJ OCT 1 1993 9309140129 YY93 MM10 9310010072 930909 TECHNOLOGY IN THE LAB LINK BETWEEN ALCOHOL VIOLENCE EXPLORED BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL IT IS JUST A CLEAR ACRYLIC CONTAINER THE SIZE OF A SHOE BOX BUT TO THE WHITE MOUSE INSIDE IT'S HOME AND AN INTRUDER ANOTHER MOUSE HAS JUST DROPPED IN AFTER SIZING HIM UP THE RESIDENT MOUSE LUNGES FORWARD AND BITES THE INTRUDER WHO BACKS AWAY THE RESIDENT ATTACKS AGAIN AND AGAIN A TOTAL OF EIGHT TIMES IN A MINUTE LATER THE MOUSE GUARDING HIS CASTLE IN THIS TUFTS UNIVERSITY LAB WILL BE GIVEN A DRINK OF ALCOHOL AND RESEARCH SUGGESTS HIS ATTACKS MIGHT DOUBLE OR TRIPLE IN NUMBER AND INTENSITY OF VICIOUSNESS OR HE MAY FALL ASLEEP WATCHING THE ALTERCATION TO STUDY THE EFFECT OF ALCOHOL ON VIOLENT BEHAVIOR ARE KLAUS A MICZEK AND HELENA BARROS TWO RESEARCHERS AT TUFT'S PSYCHOPHARMACOLOGY LABORATORY IN THE OUTSKIRTS OF BOSTON AFTER A MINUTE DR BARROS RESCUES THE INTRUDER MOUSE AND RETURNS HIM TO HIS OWN ACRYLIC ABODE DR MICZEK 48 YEARS OLD SAYS HIS INTEREST IN VIOLENCE RESEARCH GREW IN PART OUT OF HIS EARLY YEARS IN BERLIN AS A MEMBER OF A GENERATION FROM GERMANY THAT HAD TO DEAL WITH THE CONSEQUENCES OF INTENSE VIOLENCE DURING THE WAR TO DIFFERENT SEGMENTS OF SOCIETY MOREOVER HE SAYS HE WAS INTERESTED IN THE RESEARCH FIELD PRECISELY BECAUSE VERY LITTLE WAS KNOWN ABOUT THE CAUSES OF VIOLENT BEHAVIOR ALCOHOL HAS LONG BEEN LINKED TO VIOLENT BEHAVIOR IT IS INVOLVED IN UP TO TWOTHIRDS OF MURDERS AND SERIOUS ASSAULTS ACCORDING TO THE NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM YET LITTLE IS KNOWN TO EXPLAIN WHY THERE ISN'T MUCH IN THE ANIMAL LITERATURE THAT GIVES US INSIGHT ON ALCOHOLRELATED AGGRESSION DR MICZEK SAYS EXPERIMENTAL RESEARCH INCLUDING HIS OWN ANIMAL STUDIES TENDED UNTIL RECENTLY TO UNDERMINE THEORIES OF A LINK BETWEEN ALCOHOL AND VIOLENCE BECAUSE A STATISTICAL RELATIONSHIP COULDN'T BE FOUND DR MICZEK SAYS ALSO RAISING QUESTIONS ABOUT A BIOLOGICAL LINK WAS THE FACT THAT THE VAST MAJORITY OF PEOPLE WHO DRINK DON'T BECOME VIOLENT DR MICZEK DECIDED TO TRY A DIFFERENT APPROACH RATHER THAN USING STANDARD STATISTICAL ANALYSES THAT LUMP TOGETHER ALL RESULTS FROM ALL THE ANIMALS HE SORTED THEM ACCORDING TO HOW PRONE TO AGGRESSION THEY WERE A CLEAR AND SURPRISING PATTERN EMERGED A SUBGROUP OF ANIMALS EXHIBITED THE ALCOHOLRELATED AGGRESSIVE BEHAVIOR THE REST OF THE ANIMALS HAD MORE MODERATE REACTIONS AND SOME HAD THE OPPOSITE EXTREME REACTION OF FALLING ASLEEP THAT CORRESPONDS TO OBSERVED BEHAVIOR IN HUMANS WHERE ALCOHOL SEEMS TO TRIGGER VIOLENCE IN A SMALL GROUP OF PEOPLE AFTER YEARS OF PURSUING HYPOTHESES TO EXPLAIN THE DIFFERENT REACTIONS AND FAILING DR MICZEK SAYS WE KNOW WHAT DOESN'T MAKE A DIFFERENCE FOR EXAMPLE BEING THE DOMINANT ANIMAL OR THE RUNT DOESN'T APPEAR TO BE RELATED TO ALCOHOLRELATED AGGRESSION NEITHER DO TENDENCIES TOWARD AGGRESSION PRIOR TO TAKING ALCOHOL AND LIVING CONDITIONS DON'T SEEM TO EXPLAIN THE DIFFERENCE THE RESEARCHERS ARE NOW INVESTIGATING WHETHER ALCOHOL AFFECTS A CERTAIN BIOLOGICAL MECHANISM IN THE SAME WAY THAT SOME ANTIANXIETY DRUGS DO HOFFMANNLA ROCHE INC'S VALIUM AND LIBRIUM BOTH MEMBERS OF THE BENZODIAZEPINE CLASS OF DRUGS BIND TO THE BENZODIAZEPINE NERVE RECEPTOR WHICH SITS ON ANOTHER RECEPTOR TO WHICH A NEUROTRANSMITTER CALLED GABA BINDS WHEN VALIUM BINDS TO THE BENZODIAZEPINE RECEPTOR IT PREVENTS GABA FROM BINDING TO ITS RECEPTOR THE RESULT IS USUALLY A CALMING EFFECT IN THE PATIENT BUT IN SOME PEOPLE IT PRODUCES THE OPPOSITE REACTION CALLED PARADOXICAL RAGE DR MICZEK SAYS SEEKING TO TEST ALCOHOL'S EFFECT ON THE BENZODIAZEPINE RECEPTOR DR MICZEK ADMINISTERED TO ANIMALS DRUGS THAT BLOCK BENZODIAZEPINE DRUGS FROM BINDING TO THE RECEPTORROCHE'S MAZICON AND AN EXPERIMENTAL DRUG BY SCHERING AG HE FOUND THAT THE BLOCKING DRUGS REDUCED THE AGGRESSIONHEIGHTENING EFFECTS OF ALCOHOL IN RATS AND MONKEYS MAZICON IS CURRENTLY SOLD TO REVERSE THE SEDATIVE EFFECTS OF BENZODIAZEPINES THE EFFECT IS AN INDICATION THAT ALCOHOL MIGHT BE BINDING WITH THE BENZODIAZEPINE RECEPTOR AND PRODUCING IN SOME PEOPLE THE VIOLENT REACTION SIMILAR TO PARADOXICAL RAGE DR MICZEK SAYS IT'S A FIRST INKLING THAT ALCOHOL MAY SHARE SOME COMMON BIOLOGICAL MECHANISM WITH VALIUM HE SAYS STILL THE EFFECT MIGHT BE THE RESULT OF AN INTERACTION AT SOME OTHER SITE HE ADDS ANOTHER RECENT STUDY COMPARED THE BRAIN TISSUE OF MICE THAT GREW AGGRESSIVE UNDER THE INFLUENCE OF ALCOHOL AND THOSE THAT DIDN'T THE RESEARCHERS FOUND A CONSISTENT DIFFERENCE IN SOME AREAS OF THE BRAIN THE BINDING OF MAZICON TO THE BENZODIAZEPINE RECEPTORS WAS MUCH LOWER IN THE AGGRESSIVE ANIMALS ANOTHER NEUROTRANSMITTER SEROTONIN HAS ALSO BEEN A FOCUS OF VIOLENCE RESEARCH SOME STUDIES BY OTHER RESEARCHERS ASSOCIATE LOW SEROTONIN LEVELS WITH VIOLENT BEHAVIOR OTHER RESEARCHERS HAVE FOUND AGGRESSION LINKED TO AN INTERACTION BETWEEN SEROTONIN ALCOHOL AND OTHER FACTORS STUDIES BY DR MICZEK TO CHANGE SEROTONIN LEVELS IN ANIMALS UNDER THE INFLUENCE OF ALCOHOL ARE UNDER WAY ASIDE FROM THESE EXPERIMENTS DR MICZEK HAS ABOUT A DOZEN PROJECTS LOOKING INTO THE BIOLOGICAL SOCIAL AND OTHER ENVIRONMENTAL INTERACTIONS THAT CAUSE AGGRESSION HE BELIEVES UNDERSTANDING PSYCHOLOGICAL AND EXTERNAL INFLUENCES IS CRITICAL AND THAT VIOLENCE IS THE RESULT OF ENVIRONMENTAL CONDITIONS AND SOCIAL EXPERIENCE CONTINUOUSLY ALTERING THE BIOLOGICAL PROCESSES SEE RELATED LETTER LETTERS TO THE EDITOR DRUNKEN LAB MICE DON'T PROVE ANYTHING WSJ OCT 1 1993 9309090066 YY93 MM10 9310010005 930930 NAFTA SCORECARD BY PAUL WONNACOTT THIS LIST IS NOT EXHAUSTIVE FOR EXAMPLE IT LEAVES OUT PROVISIONS COVERING FINANCIAL SERVICES TELECOMMUNICATIONS AND LAND TRANSPORTATION BUT THIS SCORECARD ACCURATELY REFLECTS THE MAIN POINT ABOUT NAFTA IT IS LARGELY A LIST OF THINGS THAT MEXICO MUST DO US BARRIERS TO MEXICAN TRADE ARE ALREADY LOW WITH MORE THAN HALF OF OUR IMPORTS FROM MEXICO ALREADY ENTERING DUTYFREE IF THE US IS TRULY UNABLE TO MEET LOWWAGE MEXICAN COMPETITION AS THE NAFTA OPPONENTS FEARTHEN MEXICO SHOULD ALREADY HAVE TAKEN US TO THE CLEANERS IN OUR TRADING RELATIONSHIP BUT THIS HAS NOT HAPPENED ON THE CONTRARY LAST YEAR WE EXPORTED 56 BILLION MORE TO MEXICO THAN IT EXPORTED TO US THE ONESIDED NATURE OF THE COMMITMENTS DOES NOT MEAN HOWEVER THAT MEXICO HAS ACCEPTED A RAW DEAL IN RECENT YEARS MEXICO HAS UNILATERALLY REDUCED MANY OF ITS TARIFFS THIS OPENING TO THE WORLD ECONOMY HAS HELPED MEXICO TO RECOVER FROM THE DEBTCRISIS DEPRESSION OF THE EARLY 1980S IT HAS ALSO BENEFITED US INDUSTRIES WHOSE EXPORTS TO MEXICO ROSE BY MORE THAN 200 BETWEEN 1986 AND 1992 THE MEXICAN REFORMS OF RECENT YEARS HAVE ONCE AGAIN ILLUSTRATED THE MUTUAL GAINS THAT CAN COME FROM TRADE LIBERALIZATION TRADE IS NOT A ZEROSUM GAME NAFTA WILL REINFORCE AND EXTEND THE MEXICAN REFORMS THIS WILL BENEFIT MEXICO IT WILL ALSO BENEFIT THE US MR WONNACOTT AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF MARYLAND WAS A MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS IN THE BUSH ADMINISTRATION MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO MEXICO UNDERTAKES TO US UNDERTAKES TO 9310010104 930831 MEDICAL MESS IMPLANTS IN JAW JOINT FAIL LEAVING PATIENTS IN PAIN AND DISFIGURED TEFLONCOATED DISK SEEMED A BOON FOR TMJ AT FIRST BUT HAD LITTLE TESTING SURGICAL MERRYGOROUND' BY BRUCE INGERSOLL AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL ROBLYN RUGGLES IS WEEPING THIS ISN'T MY FACE SHE SAYS I USED TO BE REAL PRETTY EIGHT ORALSURGERY OPERATIONS HAVE LEFT HER DISFIGURED WITHOUT JAW JOINTS HER MOUTH PERMANENTLY AGAPE SHE CAN'T BITE INTO A SANDWICH SHE CAN'T PURSE HER LIPS FOR A KISS AND ALONE AT NIGHT SHE CAN HARDLY BEAR THE MUSCLE SPASMS AND THE PAIN IT NEVER GOES AWAY IT'S GODAWFUL PAIN SAYS THE ONETIME NURSE WHO LIVES IN CUYAHOGA FALLS OHIO I HAVE TO PRETEND IT'S SOMETHING ELSE TO HOLD ONTO MY SANITY MS RUGGLES 37 YEARS OLD IS A VICTIM OF BIOMATERIALS ENGINEERING GONE AWRY CAUGHT UP IN A MEDICAL CATASTROPHE THAT IS CLAIMING NEW CASUALTIES ALMOST EVERY DAY THE CAUSE OF HER PAIN AND DISFIGUREMENT SYNTHETIC JAW IMPLANTS AGGRESSIVELY MARKETED BY CHARLES HOMSY FOUNDER OF VITEK INC WITHOUT ADEQUATE PREMARKET TESTING HUNDREDS OF ORAL SURGEONS EMBRACED THE SOCALLED INTERPOSITIONAL IMPLANTS AS A BREAKTHROUGH OF SORTS IN THE 1980S ONE PROMINENT SURGEON JOHN KENT LENT HIS NAME TO VITEK PRODUCTS AND SERVED AS DR HOMSY'S CLINICAL CONSULTANT MORE THAN 25000 PATIENTS AFFLICTED WITH THE SAME JAW DISORDER AS MS RUGGLES TEMPOROMANDIBULAR JOINT SYNDROME OR TMJ RECEIVED VITEK IMPLANTS BEFORE LIABILITYINSURANCE PROBLEMS FORCED THE SMALL HOUSTON COMPANY TO TAKE THEM OFF THE MARKET IN MID1988 IN 1990 THE FOOD AND DRUG ADMINISTRATION FORCED THE COMPANY TO ISSUE A SAFETY ALERT AND EVENTUALLY SEIZED ITS PRODUCTS BUT FOR THOUSANDS OF PATIENTS THE IMPLANT AFFAIR IS FAR FROM OVER MEDICAL EXPERTS NOW EXPECT A HIGH PERCENTAGE IF NOT ALL OF THE IMPLANTS TO BREAK UP INTO MICROSCOPIC FRAGMENTS AND BEGET A BIOCHEMICAL REACTION IN PATIENTS THAT ERODES JAW BONE CREATING MANY OTHER PAINFUL COMPLICATIONS SAYS LARRY WOLFORD A DALLAS ORAL SURGEON THIS IS THE WORST DISASTER OUR SPECIALTY HAS EVER FACED IT IS ONE WITH MANY CONTRIBUTING FACTORS FEDERAL REGULATION OF THE MEDICALDEVICES INDUSTRY WAS LAX WHEN THE DEVICE WAS INTRODUCED IN 1983 VITEK WAS HEADED BY A ZEALOUS ENTREPRENEUR WHO ACCORDING TO THE FDA AND EXPERTS IN BIOMECHANICS NEGLECTED TO RUN A CRITICAL TEST OF THE IMPLANT'S DURABILITY THE COMPANY WAS QUICK TO DISCOUNT ADVERSE FINDINGS IN ANIMAL EXPERIMENTS ALL DONE AFTER THE IMPLANT WAS IN WIDESPREAD USE AND WAS SLOW TO ACCEPT THE IMPLICATIONS OF EARLY IMPLANT FAILURES TMJ DISORDERS CAN PRODUCE ARTHRITIS JAW AND FACIAL PAIN HEADACHES EARACHES CLICKING SOUNDS IN THE JAW AND RESTRICTED JAW MOVEMENT THE TEMPOROMANDIBULAR JOINT IS TERRIBLY COMPLICATED IT LETS THE LOWER JAW OR MANDIBLE MOVE UP AND DOWN SIDE TO SIDE FORWARD AND BACK AND IN MANY COMBINATIONS AS A PERSON SPEAKS BITES CHEWS SWALLOWS SMILES LAUGHS GRIMACES IT IS AN EXQUISITE NETWORK OF NERVES AND MUSCLES AND IT ISN'T WELL UNDERSTOOD NO ONE KNOWS FOR INSTANCE WHY TMJ DISORDERS AFFLICT WOMEN MORE THAN MEN 90 OF THE VITEK IMPLANT RECIPIENTS ARE WOMEN TREATMENT OF TMJ DISORDERS HAS LONG OCCUPIED A MEDICAL GRAY AREA ORTHOPEDIC SURGEONS HAVE STAYED AWAY FROM IT FEARFUL OF SLIPPING UP IN AN AREA SO CLOSE TO THE BRAIN EAR AND FACIAL NERVES BUT ORAL AND MAXILLOFACIAL SURGEONS HAVE BEEN MORE AGGRESSIVE IN TREATING TMJ AND WHEN THE VITEK IMPLANT CAME ON THE MARKET MANY TURNED TO IT ENTHUSIASTICALLY COMPOUNDING THE TRAGEDY NEW RESEARCH IN THE NETHERLANDS SUGGESTS THAT THE BEST TREATMENT FOR TMJ MAY BE NONE AT ALL BECAUSE MOST TMJ DISORDERS ABATE IN A FEW YEARS SOME EXPERTS IN THE US ALSO SAY THERE IS NO JUSTIFICATION FOR SURGICAL INTERVENTION IN TMJ CASES THE WORST POSTSURGICAL CASES ARE FAR WORSE THAN THE WORST CASES IN THEIR NATURAL PRESURGICAL STATES SAYS JOSEPH MARBACH OF COLUMBIA UNIVERSITY'S SCHOOL OF PUBLIC HEALTH DR HOMSY A CHEMICAL ENGINEER WHO WAS PRESIDENT AND MAJORITY OWNER OF NOWDEFUNCT VITEK BLAMES SURGEONS FOR PUTTING HIS PRODUCTS IN THE WRONG PATIENTS OR FOR BOTCHING THE PROCEDURE THE IMPLANTS HE ASSERTS WEREN'T AT FAULT POOR SURGICAL JUDGMENT AND TECHNIQUE WERE IF THERE WERE ANY GAPS IN TESTING HE SAYS IT IS THE FAULT OF DR KENT DR KENT HEAD OF ORAL AND MAXILLOFACIAL SURGERY AT LOUISIANA STATE UNIVERSITY BLAMES DR HOMSY FOR INADEQUATE TESTING THE ULTIMATE RESPONSIBILITY FOR TESTING IS THE MANUFACTURER'S SAYS DR KENT COUNTERS HIS ERSTWHILE FRIEND WHO CONTENDS THAT HE URGED DR KENT TO CONDUCT THE APPROPRIATE TESTS I'M A SCIENTIST I CAN'T OPERATE ON ANIMALS MS RUGGLES FOR ONE HAS BEEN ON A SURGICAL MERRYGOROUND EVER SINCE HER IMPLANTS CAME OUT IN JUNE 1989 DOCTORS HAVE TRIED JUST ABOUT EVERY OPTION A DERMAL TISSUE IMPLANT A SILICONE RUBBER IMPLANT A PAIR OF VITEK TOTALJOINT IMPLANTS WITHOUT ANY SUCCESS HER SURGERY BILLS TO DATE TOTAL 280000 ONLY PARTLY COVERED BY HER HUSBAND'S MEDICAL INSURANCE IN TUCSON ARIZ ORAL SURGEON STEPHEN HARKINS IS TREATING 100 IMPLANT PATIENTS 20 OF WHOM HE SAYS ARE SUICIDAL THEY ARE BARELY FUNCTIONAL UNDER HEAVY PAIN MEDICATION AND ANTIDEPRESSANTS HE SAYS THEY HAVE HAD SIGNIFICANT DAMAGE TO THE BONES AND MUSCLES OF THE FACE AND NERVE DAMAGE SOME HAVE HAD TO HAVE THEIR JAWS REBUILT WITH RIBS AND CARTILAGE FROM THEIR OWN BODIES OR FROM CADAVERS WITH MIXED RESULTS THESE PEOPLE AREN'T KOOKS SAYS DR HARKINS THEY LOOK LIKE THEY'VE SPENT 10 YEARS IN AUSCHWITZ THOUSANDS OF PATIENTS ALREADY HAVE HAD THEIR FAILED IMPLANTS REMOVED AND THOUSANDS MORE WILL HAVE TO HAVE THEIRS EXPLANTED AS WELL WHILE MANY AREN'T SHOWING ANY OVERT SYMPTOMS OF FAILURE XRAYS AND CT SCANS REVEAL THE ONSET OF BONE LOSS DEBORAH ZEITLER AN ASSOCIATE PROFESSOR OF ORAL SURGERY AT THE UNIVERSITY OF IOWA SAYS MORE THAN 90 OF HER PATIENTS WITH IMPLANTS ALREADY HAVE HAD THEM OUT DOUGLAS MORGAN A SURGEON IN LA CRESCENTA CALIF REPORTS FINDING AN IMPLANT HAD ERODED A HOLE INTO A PATIENT'S BRAIN OTHER SURGICAL IMPLANTS HAVE FAILED OF COURSE BUT FEW SO COMPLETELY SILICONEGEL BREAST IMPLANTS ARE FAILING AT A RATE OF ABOUT 1 BUT IT NOW LOOKS AS IF THE FAILURE RATE OF THE INTERPOSITIONAL IMPLANT OR IPI ULTIMATELY COULD BE 100 SAYS DANIEL LASKIN EDITOR IN CHIEF OF THE JOURNAL OF ORAL AND MAXILLOFACIAL SURGERY THE IPI WAS NOTHING MORE THAN TWO LAYERS OF PLASTIC LAMINATED TOGETHER A SUPERTHIN SHEATH OF TEFLON FEP WHICH IS A SMOOTH DUPONT CO POLYMER AND A WAFER OF HIGHLY POROUS PROPLAST WHICH IS A BIOMATERIAL CONCOCTED BY DR HOMSY OUT OF ANOTHER DUPONT POLYMER TEFLON PTFE AND CARBON OR ALUMINUM OXIDE A FUNDAMENTAL FLAW DOOMED THE TINY IMPLANT IT SIMPLY COULDN'T WITHSTAND THE WEAR AND TEAR OF THE LOWER JAW SLIDING ON ITS TEFLON SURFACE IN SOME CASES IT DISINTEGRATED WITHIN A FEW MONTHS THE IPI FIASCO HAS BEEN RUINOUS FOR EVERYBODY INVOLVED VITEK WAS FORCED INTO BANKRUPTCY DR HOMSY IS IN PROFESSIONAL EXILE IN SWITZERLAND DUPONT VITEK'S TEFLON SUPPLIER AND THE ONLY DEEPPOCKETED ENTITY IN REACH HAS BEEN ENSNARED IN LITIGATION DESPITE A DISCLAIMER IT SENT DR HOMSY IN 1967 WARNING ABOUT MEDICAL COMPLICATIONS CAUSED BY IMPLANTED TEFLONLIKE POLYMERS DR HOMSY IS ONE OF BIOENGINEERING'S PIONEERS AFTER EARNING A PHD IN CHEMICAL ENGINEERING AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY HE SPENT SEVEN YEARS AT DUPONT IN SALES AND AS A TEFLON RESEARCHER IN 1968 HE DEVELOPED PROPLAST WHICH GAINED WIDE USE IN PLASTIC SURGERY INCLUDING CHIN AND CHEEK IMPLANTS IN 1974 DR KENT BEGAN CUTTING IMPLANTS OUT OF SHEETS OF LAMINATED PROPLAST/TEFLON THEN BEING SOLD BY VITEK FOR PLASTIC SURGERY AND USING THEM TO COVER THE TIPS OF JAWBONES IN TMJ PATIENTS OTHER SURGEONS FOLLOWED HIS LEAD WITH GOOD RESULTS AND SOME BEGAN USING THE SHEETING TO REPLACE PERFORATED DISKS BY 1979 SPONGELIKE PROPLAST WAS BEING TOUTED BY THE AMERICAN ASSOCIATION OF ORAL AND MAXILLOFACIAL SURGEONS AS THE LIVING IMPLANT BECAUSE HUMAN TISSUE COULD GROW INTO ITS PORES AT THE GROUP'S ANNUAL MEETING THAT YEAR DR KENT REPORTED ON THE RESULTS OF 50 JAW IMPLANTS SAYING THAT VIRTUALLY ALL OF THE PATIENTS SHOWED MARKED PAIN RELIEF AND RESTORATION OF JAW MOVEMENT ACCORDING TO A PRESS RELEASE AT A MAJOR MEETING OF TMJ SPECIALISTS THREE YEARS LATER DR KENT SENSED BOOMING DEMAND FOR PROPLAST/TEFLON WE ANTICIPATE NUMBERS OF PROCEDURES TO RISE TO 10000 OR MORE ANNUALLY EASILY WITHIN THE NEXT YEAR HE WROTE TO DR HOMSY IN MARCH 1982 IN THE LETTER HE SUGGESTED PRODUCING PRECUT DISKS IN AN OVOID SHAPE SO SURGEONS WOULDN'T HAVE TO DO THE CUTTING AT THE OPERATING TABLE ONE YEAR LATER VITEK HAD THE GOAHEAD FROM THE FDA TO MARKET A PRECUT DISK THE IPI TO OBTAIN FDA APPROVAL DR HOMSY MERELY HAD TO PERSUADE A BUREAUCRAT THAT A PROPLAST/TEFLON DEVICE WAS SUBSTANTIALLY EQUIVALENT TO A PRODUCT ALREADY ON THE MARKET BEFORE THE ENACTMENT OF A 1976 LAW REGULATING MEDICAL DEVICES IN THIS CASE THE PRODUCT WAS AN IMPLANT MADE OF SILASTIC OR SILICONE RUBBER SILASTIC IMPLANTS HAVE FAILED TOO BUT THE CONSEQUENCES GENERALLY HAVE BEEN LESS SEVERE ONCE APPROVED THE IPI TOOK OFF COMMERCIALLY THANKS LARGELY TO A TIMELY BOOST FROM A TRIO OF TUCSON SURGEONS ONE OF WHOM HAD BEEN TAUGHT BY DR KENT HOW TO USE PROPLAST/TEFLON IN THE TMJ AT AN ORALSURGERY MEETING IN BERLIN TUCSON SURGEON THEODORE KIERSCH REPORTED A 93 SUCCESS RATE HIGH FOR THIS KIND OF PROCEDURE THIS HELPED TOUCH OFF WHAT DR KENT LATER CALLED A STAMPEDE AMONG ORAL AND MAXILLOFACIAL SURGEONS TO IMPLANT THE IPI IN TMJ PATIENTS FOR THEM IT WAS A BONA FIDE BUSINESS OPPORTUNITY A CHANCE TO DO MORE THAN WISDOMTOOTH EXTRACTIONS AND ROOT CANALS IT BECAME THE FASHION SAYS JOHN WESTINE A DELRAY BEACH FLA ORAL SURGEON GUYS WERE PUTTING THEM IN AND HAVING SUCCESS AND SO PEOPLE WERE JUMPING ON THE BANDWAGON THE 1983 CLASS OF IMPLANT RECIPIENTS INCLUDED BETTY JEAN MEYER A ONETIME REALESTATE BROKER IN TUCSON WHO READILY AGREED TO HAVE AN IPI PUT IN FOR HEADACHE RELIEF SHE SAYS HER SURGEON TOLD HER WE'LL SLIP THIS LITTLE DISK IN AND YOU'LL BE OUT OF THE HOSPITAL IN TWO TO THREE DAYS THE ATTENDING SURGEON WAS DR KIERSCH IT WAS THE FIRST OF FOUR MAJOR OPERATIONS FOR MS MEYER ALL UNSUCCESSFUL INCLUDING A 1985 PROCEDURE BY DR KENT WHO REPLACED TWO IPIS WITH VITEKMADE JAW JOINTS YETANOTHER SURGEON HAS SINCE REMOVED THOSE JOINTS AND REBUILT HER ERODED JAW BONES WITH GRAFTS FROM HER RIB CAGE LEAVING HER IN PERPETUAL PAIN THERE ARE DAYS WHEN MY JAWS ARE SO SWOLLEN AND BLUE I CAN'T OPEN MY MOUTH SHE SAYS I HAVE TO PACK MY FACE IN ICE AND STAY IN BED WITH THE CURTAINS DRAWN AND THE DOOR CLOSED I NEED THE QUIET I NEED DARKNESS DR KIERSCH LOOKING BACK FEELS BETRAYED BY THE IMPLANT'S MAKERS MY DUTY WAS TO FIND THE BEST MATERIAL POSSIBLE HE SAYS I'M A CLINICIAN I'M NOT A RESEARCH PERSON WE WERE TOLD THE MATERIAL HAD BEEN RELEASED BY THE FDA WE ASSUMED IT HAD BEEN TESTED IN THE ANIMAL JOINT TODAY MANY MEDICAL DEVICES UNDERGO LAB TESTS ANIMAL EXPERIMENTS AND HUMAN TRIALS INVOLVING GROUPS OF CLOSELY MONITORED PATIENTS IN THOSE DAYS HOWEVER SUCH TESTING GENERALLY WASN'T REQUIRED OF MEDICAL DEVICES VITEK NEVER TESTED THE IPI IN ANIMAL JAWS BEFORE MARKETING IT VITEK TOOK THE POSITION THAT THERE WAS NO WAY TO REPRODUCE IN A LAB ANIMAL WHAT HAPPENS IN THE HUMAN TMJ THE COMPANY DIDN'T DO ANY HUMAN TRIALS EITHER IT RELIED ON THE EARLY SUCCESS THAT DR KENT AND OTHERS HAD IN IMPLANTING PROPLAST/TEFLON IN TMJ PATIENTS WHILE SUCH LIMITED UNSTRUCTURED TESTING WOULD NEVER PASS FDA MUSTER AS A CLINICAL TRIAL DR HOMSY CONTENDS IT WAS AN EFFECTIVE ONE VITEK DID RUN TESTS ON A MECHANICAL SIMULATOR THAT IMITATES THE HUMAN JAW BUT THE COMPANY NEVER DID THE MOST OBVIOUS TEST OF ALL TESTING PROPLAST AND TEFLON TOGETHER AS A LAMINATED PRODUCT TO DETERMINE HOW LONG THE IPI WOULD WITHSTAND THE STRESSES FROM BITING AND CHEWING FONTENOT A BIOENGINEER WHO ONCE CONSULTED WITH VITEK ON A PHYSICALTHERAPY DEVICE AND WHO HAS DONE RESEARCH WITH DR KENT THREE YEARS AGO DID SUCH A TEST USING A SIMULATOR PATTERNED AFTER VITEK'S HE FOUND THAT THE MACHINE IN SLIDING BACK AND FORTH OVER THE IPI WITH 20 POUNDS OF FORCE WORE THROUGH THE TEFLON SURFACE INTO THE PROPLAST BACKING 100 TO 200 TIMES FASTER THAN THE WEARRATE REPORTED BY DR HOMSY IT FRACTURED THE THIN TEFLON LAYER SCATTERED MICROSCOPIC TEFLON PARTICLES ALL ABOUT AND ATE INTO THE UNDERLYING PROPLAST AT THAT RATE ACCORDING TO A SCIENTIFIC PAPER DR FONTENOT PUBLISHED LAST YEAR WITH DR KENT THE IPI WOULD HAVE A SERVICE LIFE OF ONLY ONE TO THREE YEARS HOW DID DR HOMSY ERR SO BADLY HIS WEARTESTING WAS OF TEFLON WITH A METAL BACKING THAT DIDN'T GIVE WAY UNDER THE 20POUND LOAD DR FONTENOT SAYS HAD HE TESTED LAMINATED TEFLON/PROPLAST IT WOULD HAVE BEEN OBVIOUS THAT HIGHLY POROUS PROPLAST ISN'T SOLID ENOUGH IT'S LIKE PAPER BACKED BY A SPONGE SAYS DR FONTENOT YOU CAN TAKE A PENCIL AND PUNCH A HOLE IN THE TEFLON SURFACE ALMOST ANYTHING WOULD HAVE BEEN BETTER THAN PROPLAST EVEN PAPIERMACHE' DR HOMSY SAYS DR FONTENOT'S SIMULATOR TEST ISN'T REPRESENTATIVE BECAUSE THE IMPLANT WAS SUPPOSED TO GAIN STRENGTH AFTER IMPLANTATION AS BODY TISSUE GREW INTO THE PORES OF THE PROPLAST IN MOST CASES HOWEVER YOU DON'T GET INGROWTH SAYS BARRY SANDS A BIOMEDICAL ENGINEER AND FORMER FDA INVESTIGATOR WHO DID A RISK EVALUATION OF THE VITEK IMPLANTS ONCE IMPLANTED HE SAYS THE IPI GETS REPEATEDLY COMPRESSED BETWEEN THE UPPER AND LOWER JAWS LIKE A CARPET THAT BINDS UP UNDER A DOOR AND THE PORES IN THE PROPLAST GET CLOSED OFF ONLY AFTER REPORTS OF IPI FAILURE BEGAN RUMBLING IN AROUND 1984 WERE ANIMAL STUDIES DONE IN 1984 A COLLEAGUE OF DR KENT'S IMPLANTED IPIS IN DOGS THE RESULTS WERE ESSENTIALLY CATASTROPHIC ACCORDING TO A 1990 DEPOSITION THAT DR KENT GAVE IN AN ARIZONA COURT CASE AGAINST VITEK IN TUCSON AFTER JUST A FEW MONTHS THE TEFLON LAYER WAS COMPLETELY WORN AND TEFLON PARTICLES HAD TRIGGERED BONE EROSION IN THE DOGS TO DRS KENT AND HOMSY HOWEVER THE TEST SHOWED MAINLY THAT THE DOG WASN'T A GOOD TEST ANIMAL TO USE THE DOG STUDY WASN'T THE ONLY ONE TO BE DISREGARDED IN MAY 1986 MOHAMED EL DEEB A PROFESSOR AT THE UNIVERSITY OF MINNESOTA DENTAL SCHOOL HAD DR HOMSY COME TO MINNEAPOLIS TO SEE THE RESULTS OF HIS EXPERIMENTS ON MONKEYS BOTH PROPLAST/TEFLON AND SILASTIC IMPLANTS BEGAN TO FRAGMENT AFTER A YEAR CAUSING SEVERE DEGENERATIVE JOINT CHANGES BUT THE REACTION WAS MORE PRONOUNCED WITH PROPLAST/TEFLON SAYS DR EL DEEB HE SAYS DR HOMSY MADE NO COMMENT ASKED ABOUT THE STUDY TODAY DR HOMSY SAYS THAT MONKEYS WEREN'T A GOOD MODEL REPORTS OF VITEK IMPLANT FAILURES CONTINUED TO CROP UP THE MOST ALARMING PUBLISHED IN 1986 INVOLVED A 37YEAROLD WOMAN WHO HAD AN IPI PUT IN AFTER HAVING HER JAW BROKEN BY HER ABUSIVE HUSBAND TEFLON DEBRIS FROM THE WORN IMPLANT HAD MIGRATED THROUGH HER LYMPHATIC VESSELS INTO LYMPH NODES IN HER NECK CAUSING PAINFUL INFLAMMATIONS ACCORDING TO RESEARCHERS IN CHICAGO THE IPI FAILED THEY CONCLUDED BECAUSE IT COULDN'T WITHSTAND THE LOADS GENERATED BY CHEWING FOR DR KENT THIS CASE WAS SOMETHING OF A TURNING POINT BESIDES BRINGING IT TO DR HOMSY'S ATTENTION HE SAYS HE BEGAN BLOWING THE WHISTLE ON THE IPI ALBEIT INDIRECTLY AS CHAIRMAN OF SCIENTIFIC SESSIONS AT THE ORAL SURGEONS ASSOCIATION'S NATIONAL MEETING IN 1986 HE GAVE IPI CRITICS A CHANCE TO PRESENT PAPERS IN OCTOBER OF THAT YEAR VITEK HAD NO CHOICE BUT TO NOTIFY EVERY MEMBER OF THE ASSOCIATION ABOUT THE INCREASINGLY OBVIOUS COMPLICATIONS AMONG OTHER THINGS IT SAID THE PROGNOSIS FOR THE IPI'S SUCCESS BEYOND THREE YEARS WAS UNKNOWN BUT VITEK BLUNTED THE LETTER'S WARNING BY ALSO TRUMPETING THE RESULTS OF AN ORALSURGEON SURVEY 915 OF 5070 IMPLANT CASES SHOWED SATISFACTORY RESULTS IT SAID WITHOUT DEFINING SATISFACTORY BY 1987 MALPRACTICE LAWSUITS AGAINST SURGEONS AND PRODUCTLIABILITY SUITS AGAINST VITEK WERE MOUNTING NONETHELESS IN JULY OF THAT YEAR A MEMPHIS SURGEON SUGGESTED TO MARCIE GROSSBERG A SCHOOL LIBRARIAN WHO HAD BEEN HIT IN THE JAW BY A STUDENT THAT SHE GET IPIS THE ONLY TEFLON I KNEW ABOUT WAS IN MY SKILLET SAYS MS GROSSBERG 40 WHO SAYS SHE TRUSTED THE DOCTOR'S ASSURANCES THAT THE IPI WAS STATEOFTHEART TREATMENT SHE SHOULDN'T HAVE WITHIN A FEW MONTHS HER IMPLANTS WERE DISINTEGRATING AND HER CHIN WAS RECEDING I COULDN'T GET MY TEETH TOGETHER SHE SAYS FOOD WOULD FALL OUT OF MY MOUTH IN OCTOBER 1988 SHE FOUND ANOTHER SURGEON TO EXTRACT THE IMPLANTS NOW SHE SUFFERS FROM IMMUNESYSTEM DISORDERS THAT DOCTORS BELIEVE MAY BE CAUSED BY UNREMOVED TEFLON PARTICLES TODAY DRS HOMSY AND KENT ARE SQUABBLING OVER THE TESTING ISSUE IN A FEBRUARY 1990 LETTER DR KENT SAYS DR HOMSY DIDN'T DO THE APPROPRIATE ANIMAL TESTS IN SPITE OF MY SUGGESTION IN THE EARLY 1980S THAT THEY BE PERFORMED THE NEXT MONTH DR HOMSY RETORTED YOU HAVE REPEATEDLY INFORMED US THAT THERE WERE NO APPROPRIATE ANIMAL MODELS AND THAT TESTING PERFORMED BY YOU AND LSU SUBSTANTIATED THAT CONCLUSION DR KENT NATIONALLY KNOWN AS AN INNOVATOR IN RECONSTRUCTIVE AND ORAL SURGERY IS TRYING TO DISTANCE HIMSELF FROM THE ENTIRE CATASTROPHE MY ROLE IN THE IPI WAS ESSENTIALLY NOTHING HE ASSERTS EVEN THOUGH HE ADVISED DR HOMSY ON THE IMPLANT'S SHAPE DR KENT ALSO OWNED A 1 STAKE IN VITEK AND FROM 1984 ON HE GOT A 4 ROYALTY ON EVERY TMJ PRODUCT SOLD ABOUT 50000 A YEAR HE SAYS DR HOMSY PEGS IT CLOSER TO 100000 SOME YEARS HE GOT ADDITIONAL ROYALTIES ON PROPLAST FACIAL IMPLANTS OF HIS DESIGN AS FOR DR HOMSY HE SEES THE ENTIRE AFFAIR AS A HOLOCAUST FOR HIMSELF HIS FAMILY AND HIS COMPANY AS WELL AS FOR BIOENGINEERING AND THE MEDICALDEVICE INDUSTRY BUT HE DOESN'T CONCEDE THAT THE IPI WAS A MISAPPLICATION OF HIS BELOVED INVENTION PROPLAST OR THAT AS DESIGNED IT WAS INHERENTLY FLAWED UNFORTUNATELY HE SAYS THE IMPLANT IS A SET PIECE FOR SCAPEGOATING INSTEAD HE BLAMES NOT ONLY SURGEONS BUT ALSO PATIENTS FOR FAILING TO FOLLOW THEIR SURGEONS' POSTOPERATIVE ADMONITIONS AGAINST OPENING THEIR JAWS WIDE OR EATING SOLID FOOD UNTIL THEY ARE FULLY HEALED THROUGHOUT ALL THIS THE FDA SEEMS TO HAVE MISSED SEVERAL OPPORTUNITIES TO INTERVENE AND HEAD OFF THE IPI DISASTER THE INITIAL INSPECTIONS OF VITEK'S PLANTS AFTER THE IPI WAS APPROVED IN 1983 WERE LIMITED AND FAILED TO UNCOVER ANY SIGNIFICANT PROBLEMS IT WASN'T UNTIL JULY 1988 ONE MONTH AFTER THE COMPANY PULLED THE PRODUCT OFF THE MARKET THAT THE AGENCY CONDUCTED A COMPREHENSIVE INSPECTION OF VITEK'S PLANT THAT INSPECTION WHICH INCLUDED CHECKING QUALITY CONTROLS AND OTHER MANUFACTURING PRACTICES TURNED UP NUMEROUS VIOLATIONS FDA OFFICIALS SAY VITEK WASN'T RELAYING ALL OF THE REPORTS IT WAS RECEIVING OF PROBLEMS WITH THE DEVICES AS IT WAS REQUIRED TO DO BUT THE FDA ALSO WAS UNAWARE OF OR FAILED TO ACT ON SEVERAL OTHER SIGNS THAT SOMETHING WAS SERIOUSLY AMISS INCLUDING THE COMPANY'S 1986 LETTER TO SURGEONS AND A 1987 REPORT FROM THE US AIR FORCE ABOUT IMPLANT FAILURES SEVERE PAIN AND BONE EROSION COMPLAINTS FROM AIR BASES PROMPTED A NOTICE TO EVERY BRANCH OF THE ARMED SERVICES CAUTIONING SURGEONS AGAINST USING THE IPI BUT THE GOVERNMENT DIDN'T RECALL THE PRODUCT UNTIL DECEMBER 1990 SAYS HENRY WALL A NORCROSS GA ORAL SURGEON THE FDA WAS ASLEEP AT THE SWITCH FDA OFFICIALS CONTEND THAT THE AGENCY ACTED AS SOON AS THE PROBLEMS CAME TO THE AGENCY'S ATTENTION FOR MOST PATIENTS WHOSE IMPLANTS HAVE FAILED THERE ARE FEW ALTERNATIVES TWO COMPANIES TMJ IMPLANTS INC OF GOLDEN COLO AND THE NORTHEAST DENTAL CENTER OF LOS ANGELES ARE MARKETING JAW IMPLANTS BOTH OF WHICH WERE ON THE MARKET BEFORE 1976 WHEN FDA APPROVAL WASN'T REQUIRED THEY ARE DIFFERENT FROM THE INTERPOSITIONAL DISKS AND ARE MADE OF METAL NOT PROPLAST OR TEFLON BOTH COMPANIES CLAIM GOOD RESULTS WITH THEIR IMPLANTS SOME SURGEONS RECOMMEND USING PATIENTS' OWN TISSUE TO RECONSTRUCT THE JAW JOINT BUT SUCH SURGERY OFTEN FAILS AS WELL WHAT'S MORE EVERY MEDICAL OPTION IS VERY COSTLY MANY IPI PATIENTS ARE DESTITUTE HAVING LOST THEIR JOBS AND EXHAUSTED THEIR SAVINGS AND INSURANCE COVERAGE AND OTHERS ARE STYMIED BY COVERAGE LIMITS MR HUBER SAYS HE HAS APPEALED TO STATE OFFICIALS IN BISMARCK FOR HELP BUT THEY CAN'T DO ANYTHING FOR ME SEE RELATED LETTERS LETTERS TO THE EDITOR ETHICAL DILEMMA OF JAW IMPLANTS WSJ OCT 1 1993 9308310053 YY93 MM10 9310010196 930720 TOM FOLEY STOCK SPECULATOR BY GLENN R SIMPSON THIS ARTICLE IS REPRINTED FROM THE JUNE 28 ROLL CALL A TWICEWEEKLY NEWSPAPER THAT COVERS CAPITOL HILL AT A PRESS CONFERENCE THE NEXT DAY MR FOLEY WAS ASKED ABOUT THE ISSUES RAISED IN THE ARTICLE HIS REPLY IS DISCUSSED IN A NEARBY EDITORIAL SEE RELATED EDITORIAL REVIEW & OUTLOOK EDITORIAL FOLEY'S FORTUNE WSJ JULY 20 1993 OVER THE PAST FOUR YEARS THE SPEAKER OF THE HOUSE HAS AUGMENTED HIS INCOME WITH MORE THAN 100000 IN PROFITS EARNED BY SPECULATING IN NEW STOCK ISSUES MOST OF WHICH HE BOUGHT AND SOLD WITHIN A FEW DAYS BY ANY INVESTMENT STANDARD THE SUCCESS OF SPEAKER TOM FOLEY D WASH WHO USES ONLY MINIMAL CAPITAL HAS BEEN PHENOMENAL IN 12 TRADES LAST YEAR FOR EXAMPLE FOLEY MADE MONEY 11 TIMES ONE OF THOSE TRADES IN AMYLIN PHARMACEUTICALS PRODUCED A 50 PROFIT IN A SINGLE DAY IN ANOTHER TRADE FOLEY BOUGHT 1000 SHARES OF WALKER INTERACTIVE FOR 15000 ON APRIL 1 THEN SOLD ALL THE SHARES ON APRIL 3 FOR 22750 A PROFIT OF 52 ON THE TURNAROUND WHICH WORKS OUT TO AN ANNUALIZED PROFIT OF MORE THAN 5000 FOLEY'S SUCCESSES WHICH ROLL CALL DOCUMENTED THROUGH AN ANALYSIS OF HIS DISCLOSURE STATEMENTS TO THE CLERK OF THE HOUSE CAME IN THE HIGHLY SPECIALIZED AREA OF BUYING AND SELLING INITIAL PUBLIC OFFERINGS OR IPOS LAST YEAR ON 11 QUICKTURNAROUND IPO TRADES FOLEY MADE A TOTAL PROFIT OF PRECISELY 32250 HE BOUGHT TWO OTHER ISSUES IN THE LAST 10 DAYS OF THE YEAR THAT HAD EARNED A PROFIT OF 2300 BUT HAD NOT BEEN SOLD AT YEAREND THAT'S A TOTAL OF 34550 BUT FOR ONE OTHER NEW ISSUE ENDOSONICS FOLEY BROKE HIS PATTERN AND HELD THE STOCK FOR SIX MONTHS BEFORE SELLING IT AT A LOSS OF 8750 SO THE SPEAKER'S NET PROFITS FOR THE YEAR TOTALED 23500 IPOS HAVE BEEN ESPECIALLY LUCRATIVE IN RECENT YEARS SO MUCH SO THAT IT IS DIFFICULT IF NOT IMPOSSIBLE FOR INVESTORS OF MODEST MEANS LIKE FOLEY TO GET IN ON THE ATTRACTIVE ONES FOLEY'S SUCCESS IS NOT SO MUCH A FUNCTION OF HIS INVESTING ACUMEN AS IT IS OF THE ABILITY OF HIS INVESTMENT ADVISER TO SECURE IPO STOCK FOR THE SPEAKER TO BUY EXPERTS IN THE FIELD OF IPOS INTERVIEWED FOR THIS ARTICLE BUT NOT TOLD THAT THE SPEAKER OF THE HOUSE WAS INVOLVED SAID THAT IT IS HIGHLY UNUSUAL IF NOT UNETHICAL FOR AN INVESTMENT ADVISER OR BROKER TO STEER SO MANY IPOS TO A SINGLE CLIENT ESPECIALLY A CLIENT WHO DOES PRACTICALLY NO OTHER INVESTING TYPICAL WAS THE RESPONSE OF SANDY ROBERTSON A VETERAN SPECIALIST IN IPOS THAT'S BAD NEWS THAT'S NOT THE WAY IT SHOULD BE DONE HE SAID BECAUSE YOU'RE HANDING A PERSON SOME FREE MONEY ROBERTSON THE FOUNDER OF ROBERTSON STEPHENS & CO A MAJOR INVESTMENT BANKING FIRM BASED IN SAN FRANCISCO REVIEWED FOLEY'S TRADING RECORDS AT THE REQUEST OF ROLL CALL TOLD ONLY THAT THE RECORDS WERE THOSE OF A POLITICIAN ROBERTSON ASSERTED THAT THE PREFERENTIAL TREATMENT THE SPEAKER HAS RECEIVED IS FLAGRANT FOLEY SPOKESMAN JEFF BIGGS SAID FRIDAY JUNE 25 THAT IN ROLL CALL'S MIND IT MAY SEEM UNUSUAL BUT MORE IMPORTANTLY THERE IS NOTHING QUESTIONABLE UNETHICAL OR IMPROPER TYPICALLY ACCORDING TO ROBERTSON AND SEVERAL OTHER INDUSTRY SOURCES INVESTMENT ADVISERS AND BROKERS RESERVE IPO SHARES IN HOT ISSUES FOR THEIR BEST CUSTOMERS THOSE WHO HAVE LARGE STABLE STOCK PORTFOLIOS BUT FOLEY RARELY BUYS STOCKS OTHER THAN IPOS AT YEAREND 1992 HE HELD ONLY ONE STOCK VALUED AT 9113 THAT DID NOT FIT THE STOCKTURNAROUND IPO PATTERN HE ALSO HAD JUST 2112 IN A MONEYMARKET ACCOUNT WITH THE FIRM THAT PROVIDED HIM WITH THE NEWISSUE DEALS ALSO ON AVERAGE FOLEY SELLS HIS IPO SHARES WITHIN THREE OR FOUR DAYS OF PURCHASING THEM FOR A QUICK PROFIT SUCH TRANSACTIONS WHICH REQUIRE UNCOMMON ACCESS ARE FROWNED UPON BY MANY IN THE SECURITIES INDUSTRY THE SPEAKER'S BENEFACTOR IN IPO INVESTING IS A HIGHSCHOOL CLASSMATE WHO HAS BEEN HIS INVESTMENT ADVISER FOR AT LEAST A DECADE THE ADVISER PETER DE ROETTH HAS CARTE BLANCHE TO BUY AND SELL STOCKS FOR FOLEY THEIR SCHEDULES ARE SUCH THAT THEY SEE EACH OTHER SELDOM AND NEVER DISCUSS INVESTMENTS SAID BIGGS THE SPEAKER HAS NO EXPERTISE NO TIME AND NO INTEREST DE ROETTH HAS DONE A LOT WITH A LITTLE IN 1989 HE MADE MORE THAN 23000 FOR FOLEY ON EIGHT NEWISSUE TRADES INVOLVING INVESTMENTS OF 30000 OR LESS THE NEXT YEAR WAS EVEN BETTER WITH ABOUT 30000 IN SOCALLED HOTISSUE PROFITS DE ROETTH PRODUCED A RECORD YEAR IN 1991 BRINGING IN MORE THAN 33000 TRADING 13 NEW ISSUES HIS BEST PERFORMANCE TO DATE FOLEY'S ADVISER WOULD SEEM TO HAVE AN UNCANNY KNACK FOR PICKING PROFITABLE NEW ISSUES AN 8750 LOSS FOLEY TOOK ON ENDOSONICS LAST YEAR WAS ONLY THE SECOND LOSS IN THE 42 HOTISSUE TRADES THAT DE ROETTH HAS EXECUTED ON BEHALF OF THE SPEAKER SINCE JANUARY 1989 IN OTHER WORDS FOLEY HAS MADE MONEY ON 95 OF THE NEW ISSUES HE HAS BOUGHT IN THE LAST FOUR YEARS A RECORD THAT WOULD PUT HIM IN THE SAME LEAGUE AS STOCKMARKET GIANTS LIKE WARREN BUFFETT AND PETER LYNCH IF IT WEREN'T FOR THE FACT THAT PROFITING FROM HOT IPOS IS SO EASY THE TRICK IS BEING LET IN ON THE DEALS FOLEY'S PROFITS ARE MADE FROM A PRACTICE KNOWN AS FLIPPING WHICH TAKES ADVANTAGE OF THE PREDICTABLE JUMP IN PRICE THAT OCCURS IN THE FIRST FEW HOURS OR DAYS FOLLOWING THE MOMENT WHEN A SOUGHTAFTER NEW STOCK BEGINS TRADING IT WORKS LIKE THIS A COMPANY ANNOUNCES THAT IT PLANS TO ISSUE STOCK AT A CERTAIN PRICE WORD GETS OUT THAT THE NEW STOCK IS IN STRONG DEMAND BY WHICH TIME IT IS ALMOST IMPOSSIBLE FOR THE AVERAGE BROKER TO SECURE ENOUGH OF THE STOCK TO SATISFY CLIENT DEMAND BUT FOLEY'S WELLCONNECTED INVESTMENT ADVISER MANAGES TO CONTRACT FOR A QUANTITY OF THE NEW STOCK BEFORE IT COMES TO MARKET USUALLY ACQUIRING ABOUT 15000 TO 20000 WORTH FOR THE SPEAKER WHEN THE STOCK HITS THE MARKET BUYERS WHO DID NOT GET THE CHANCE TO BUY SHARES BEFORE THEY WERE ISSUED JUMP IN TO MAKE THEIR PURCHASES THE PRICE JUMPS TYPICALLY IN THE CASE OF FOLEY'S STOCKS ABOUT TWO OR THREE POINTS SOMETIMES FAR MORE AT THAT POINT FOLEY'S INVESTMENT ADVISER SELLS THE SHARES AND FOLEY POCKETS THE DIFFERENCE BETWEEN THE CONTRACT PRICE AND THE TRADING PRICE SINCE DE ROETTH ALMOST ALWAYS COMPLETES ONE FLIP BEFORE BEGINNING ANOTHER THE SPEAKER RISKS VERY LITTLE MONEY AT ANY ONE TIME AND NEEDS VERY LITTLE INITIAL CAPITAL OBVIOUSLY IF SUCH HEFTY PROFITS AND IMPRESSIVE SUCCESS RATES WERE WIDELY AVAILABLE TO PEOPLE WHO HAVE ONLY A FEW THOUSAND DOLLARS TO WORK WITH MILLIONS OF MIDDLECLASS PEOPLE WOULD BE PLAYING THE MARKET IN WHAT ARE KNOWN AS HOT ISSUES BUT EXPERTS SAY THEY WOULDN'T BE WELCOME SEVERAL BROKERS CONTACTED BY ROLL CALL SAID THAT ONLY BIG INVESTORS ARE CONSISTENTLY ABLE TO OBTAIN HOT ISSUES THE NEW STOCKS THAT ARE IN GREAT DEMAND AND WILL ALMOST CERTAINLY GO UP IN PRICE AS SOON AS THEY BEGIN TRADING ON THE OPEN MARKET WHILE ANYONE CAN BUY SOME OF THE LESS ATTRACTIVE INITIAL PUBLIC OFFERINGS THE EXPERTS SAY THE SOCALLED HOT ISSUES ARE DOLED OUT TO ONLY A SELECT FEW YOU CAN'T DO IT IF YOU'RE NOT A BIG PLAYER SAYS ROBERTSON IT HAS TO BE IN RELATION TO THE AMOUNT OF BUSINESS YOU'RE DOING WITH THE BROKER ROBERT J SHILLER AN ECONOMIST AT YALE UNIVERSITY WHO HAS STUDIED THE INITIAL PUBLIC OFFERING MARKET IN DEPTH SAYS HE HAS VERIFIED THE DEARTH OF ACCESS TO HOT ISSUES THROUGH SURVEYS OF SMALL INVESTORS PEOPLE CONFIRM THAT YOU CAN GET INTO IPOS BUT THEY'RE THE ONES THAT DON'T DO WELL HE SAYS YOU TEND TO MISS THE GOOD ONES NO LESS AN AUTHORITY THAN PETER LYNCH WHO MANAGED THE NATION'S TOPPERFORMING MUTUAL FUND FIDELITY MAGELLAN FOR MANY YEARS NOTES THE PHENOMENON IN HIS BESTSELLING 1989 BOOK ON PLAYING THE MARKET ONE UP ON WALL STREET YOU CAN'T ALWAYS GET SHARES IN HOT IPOS LYNCH TELLS READERS THAT'S AN UNDERSTATEMENT SHILLER SAYS BROKERS HOARD HOT IPOS FOR CLIENTS WHO BRING IN A LOT OF COMMISSIONS OR REFERRALS THEY TEND TO GIVE THEM TO THEIR GOOD CUSTOMERS HE SAID THE FREE MONEY' ASPECT OF A HOT DEAL SAYS ROBERTSON IS SUPPOSED TO BE IN RETURN FOR OTHER SERVICES SUCH AS COMMISSIONS BUT FOLEY WOULD NOT BE CONSIDERED A GOOD CUSTOMER BY MOST BROKERS AND INVESTMENT ADVISERS INDEED HE MAY BE DE ROETTH'S SMALLEST CLIENT THE FIRM MANAGES ABOUT 79 MILLION WORTH OF ASSETS FOR 45 ACCOUNT HOLDERS ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS THE AVERAGE JOE ON THE STREET IS PROBABLY GOING TO BE CLOSED OUT OF THE HOT ONES UNLESS THAT PERSON IS WILLING TO BUY THE HOT AND THE NOTSOHOT SAYS AUTHOR AND ECONOMIST HOWARD SCHILIT OF AMERICAN UNIVERSITY THE CIRCUMSTANCES OF FOLEY'S TRADING WERE DESCRIBED TO SCHILIT WHO HAS WRITTEN A BOOK ON INVESTING THAT DISCUSSES IPOS IN DEPTH I WOULD SAY BASED UPON EVERYTHING I KNOW FOR A PERSON TO BE ABLE TO MAKE 10 OR 15 TRADES A YEAR AND JUST GET THE HOT ISSUES THAT WOULD NOT BE AVAILABLE TO THE AVERAGE PERSON A GOOD EXAMPLE OF THE FAVORABLE TREATMENT FOLEY RECEIVES WAS HIS INVESTMENT LAST YEAR IN SCHOLASTIC CORP A PUBLISHER OF CHILDREN'S BOOKS AND MAGAZINES SCHOLASTIC SOLD NEW STOCK TO THE PUBLIC LAST MARCH OFFERING ABOUT 5 MILLION SHARES AT A PRICE OF 2250 A SHARE BUT GETTING ONE'S HANDS ON THE SHARES WAS NO EASY MATTER ACCORDING TO AN ARTICLE ON SCHOLASTIC IN CRAIN'S NEW YORK BUSINESS THE SHARES OFFERED FOR SALE WERE 10 TIMES OVERSUBSCRIBED IN OTHER WORDS 10 TIMES AS MANY SHARES WERE SOUGHT BY INVESTORS AS WERE ACTUALLY ISSUED THANKS TO DE ROETTH FOLEY WAS AMONG THE LUCKY 10 WHO GOT STOCK THE ADVISER BOUGHT 1000 SHARES OF SCHOLASTIC FOR THE SPEAKER ON MARCH 2 1992 AT 225 HE SOLD ALL THE STOCK THE NEXT DAY AT 265 A PROFIT OF 4000 ON A ONEDAY INVESTMENT OF 22500 A GAIN OF 18 WHICH ANNUALIZED COMES OUT TO ABOUT 6000 WHY WOULD DE ROETTH BESTOW SUCH LARGESSE UPON FOLEY THE SPEAKER AND DE ROETTH HAVE MAINTAINED THAT THE ONLY REASON IS FRIENDSHIP AND THERE'S NO INDICATION TO THE CONTRARY DE ROETTH HAS BEEN OUT OF THE COUNTRY IN RECENT WEEKS AND DID NOT RESPOND TO SEVERAL INTERVIEW REQUESTS TRANSMITTED THROUGH HIS BOSTON OFFICE BUT IN A 1988 WASHINGTON POST ARTICLE DE ROETTH DESCRIBED HIS EFFORTS ON FOLEY'S BEHALF AS ALMOST LIKE A PUBLIC SERVICE I THINK A GUY LIKE TOM DESERVES TO BE SUPPORTED AT THAT TIME DE ROETTH'S EFFORTS ON BEHALF OF FOLEY WHO WAS THEN HOUSE MAJORITY LEADER WERE MODEST BETWEEN 1983 AND 1986 THE POST REPORTED FOLEY CLEARED SOMETHING OVER 28000 DE ROETTH A GRADUATE OF HARVARD LAW SCHOOL IS ONE OF TWO PRINCIPALS IN THE FIRM ACCOUNT MANAGEMENT CORP IN ONE UP ON WALL STREET THE LEGENDARY LYNCH SAYS DE ROETTH HAS DONE EXTREMELY WELL WITH SMALL STOCKS JUST BECAUSE HE APPEARS TO BE DEVIATING FROM STANDARD PRACTICE IN HELPING FOLEY DE ROETTH ISN'T NECESSARILY VIOLATING INVESTMENT INDUSTRY RULES OR NORMS SCHILIT SAYS IT IS NOT UNKNOWN FOR BROKERS TO DO SUCH FAVORS FOR FAMILY OR CLOSE FRIENDS OVER A NUMBER OF YEARS AND WHILE DE ROETTH IS HELPING FOLEY BY DEPRIVING HIS BIG CLIENTS OF SOME POTENTIAL WINDFALLS OFFICIALS AT THE SEC AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAY THE PRACTICE IS NOT A VIOLATION OF ANY RULE OR LAW SIMILARLY AS LONG AS FOLEY IS NOT DOING ANYTHING FOR DE ROETTH THE SPEAKER IS NOT BREAKING ANY LAWS OR ANY ETHICS RULES WHAT IS UNUSUAL ABOUT THE ARRANGEMENT IS THAT FOLEY HAS ALWAYS HAD A REPUTATION FOR HIGH INTEGRITY AND CONCERN FOR PROBITY ONE EXPLANATION FOR THE PARADOX MAY BE THAT FOLEY DOES NOT REALIZE THE EXTENT TO WHICH HE IS RECEIVING SPECIAL TREATMENT THE SPEAKER UNDERSTANDS NOTHING ABOUT NEW ISSUES SAID FOLEY PRESS SECRETARY BIGGS ADDING THAT FOLEY NEVER DISCUSSES THE TRADES WITH DE ROETTH AND HIS ACCOUNT IS ALMOST LIKE A BLIND TRUST ADDED BIGGS IF IT IS UNUSUAL FOR A SMALL INVESTOR TO GET ACCESS TO INITIAL PUBLIC OFFERINGS THEN THE SPEAKER IS UNUSUALLY LUCKY IN HAVING A FRIEND SUCH AS MR DE ROETTH IT IS IMPORTANT TO NOTE THAT FOLEY CLEARLY BELIEVES HE HAS NOTHING TO HIDE HE VOLUNTARILY DISCLOSES ALL OF THE DETAILS OF HIS TRADES EVEN THOUGH HOUSE RULES ALLOW HIM TO BE FAR MORE SKETCHY IN HIS ANNUAL REPORTING ONE QUESTION THAT ARISES IS WHETHER FOLEY IS REALLY INVESTING HIS MONEY AT ALL OR WHETHER HE IS RECEIVING ANNUALLY WHAT IN EFFECT AMOUNTS TO A 20000 CASH GIFT A CONVEYANCE THAT WOULD BE PROHIBITED IF DELIVERED IN A MORE STRAIGHTFORWARD MANNER INDEED WHEN THE CIRCUMSTANCES OF FOLEY'S TRADES WERE DESCRIBED AGAIN ANONYMOUSLY TO ONE TOP EXECUTIVE OF A WELLKNOWN BROKERAGE HOUSE THE EXECUTIVE REMARKED SOMEONE IS GIVING HIM MONEY NOLOSE STOCK DEALS HAVE PLAYED A PROMINENT ROLE IN THE HISTORY OF POLITICAL SCANDAL THE 187273 CREDIT MOBILIER SCANDAL INVOLVED A NEWISSUE STOCK THAT WAS SOLD AT CUT RATES TO MEMBERS MORE RECENTLY THE RECRUIT CO SCANDAL THAT ROCKED JAPAN'S LEGISLATURE ALSO INVOLVED NEWISSUE STOCK WHILE IN RECENT YEARS 95 OF FOLEY'S STOCKS HAVE BEEN PROFITABLE THE INVESTING HE DOES IS NOT ENTIRELY WITHOUT RISK IN 1987 THE YEAR OF THE STOCK MARKET CRASH FOLEY'S TRADES WERE DISMAL AND HE APPEARS TO HAVE LOST MONEY THUS IT IS DEBATABLE WHETHER FOLEY'S DEALS REALLY AMOUNT TO GIFTS STILL IN THE LAST FOUR YEARS THE SPEAKER'S INVESTMENT ADVISER HAS BEEN ALMOST INFALLIBLE A TURN IN FOLEY'S FORTUNES THAT COINCIDED WITH HIS ASCENT TO THE SPEAKERSHIP IN THAT LIGHT PERHAPS THE MOST INTRIGUING QUESTION IS WHETHER FOLEY LEARNED FROM THE EXPERIENCE OF HIS PREDECESSOR REP JIM WRIGHT D TEXAS FOR A TOP POLITICIAN OFTEN THE GREATEST DANGERS CAN ARISE NOT FROM ANIMOSITIES BUT FROM FRIENDSHIPS MR SIMPSON IS A REPORTER FOR ROLL CALL 9309300177 930930 WHO'S NEWS SIERRA SEMICONDUCTOR CORP SIERRA SEMICONDUCTOR CORP SAN JOSE CALIF ALEXANDRE BALKANSKI COFOUNDER AND VICE PRESIDENT OF CCUBE MICROSYSTEMS INC WAS ELECTED TO THE BOARD OF THIS INTEGRATED CIRCUIT COMPANY HE SUCCEEDS LEE KHENG NAM WHO RESIGNED 9309300176 930930 WHO'S NEWS LE MYERS CO GROUP LE MYERS CO GROUP ROLLING MEADOWS ILL BIDE L THOMAS WAS ELECTED A DIRECTOR OF THIS ELECTRICAL CONSTRUCTION CONCERN INCREASING BOARD MEMBERSHIP TO FOUR MR THOMAS RETIRED AS PRESIDENT AND CHIEF OPERATING OFFICER OF COMMONWEALTH EDISON CO LAST YEAR 9309300175 930930 WHO'S NEWS PROTECTIVE LIFE CORP PROTECTIVE LIFE CORP BIRMINGHAM ALA JOHN D JOHNS 41 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS INSURANCE COMPANY MR JOHNS WHO PREVIOUSLY SERVED AS VICE PRESIDENT AND GENERAL COUNSEL OF SONAT INC IN BIRMINGHAM SUCCEEDS DENNIS R GLASS 44 WHO HAS BEEN NAMED CHIEF FINANCIAL OFFICER OF JEFFERSONPILOT CORP AN INSURANCE COMPANY IN GREENSBORO NC 9309300174 930930 GREYHOUND LINES INC DISCOUNTS DALLAS GREYHOUND LINES INC SAID BEGINNING TOMORROW IT WILL LOWER THE QUALIFYING AGE FOR SENIOR DISCOUNTS TO 55 YEARS OF AGE FROM 65 AND WILL INCREASE ITS DISCOUNT FOR SENIOR CITIZENS BUYING UNRESTRICTED FARES TO 15 THE DISCOUNT HAS BEEN 10 FOR TRIPS MONDAY THROUGH THURSDAY AND 5 FOR TRIPS TAKEN FRIDAY THROUGH SUNDAY THE INTERCITY BUS COMPANY SAID 9309300173 930930 CONSOLIDATED STORES SALES UP COLUMBUS OHIO CONSOLIDATED STORES CORP SAID RETAIL SALES IN THE FOUR WEEKS ENDED SATURDAY CLIMBED 19 TO 787 MILLION FROM 663 MILLION A YEAR AGO THE OPERATOR OF CLOSEOUT SPECIALTY STORES ALSO SAID RETAIL SALES IN THE YEAR'S FIRST EIGHT MONTHS INCREASED 14 TO 5871 MILLION FROM 5156 MILLION IN THE SAME PERIOD LAST YEAR SALES AT STORES OPEN TWO YEARS ROSE 86 IN THE FOURWEEK PERIOD AND 23 IN THE EIGHT MONTHS 9309300172 930930 INTERNATIONAL INTERBREW SETS LICENSING ACCORD LEUVEN BELGIUM BELGIAN BREWERY INTERBREW NV AND ITS HUNGARIAN SUBSIDIARY BORSODI SORGYAR SIGNED A LICENSING AGREEMENT WITH GERMAN BREWERY HOLSTENBRAUEREI AG ALLOWING BORSODI TO PRODUCE AND DISTRIBUTE THE HOLSTEN BRAND ON AN EXCLUSIVE BASIS IN HUNGARY INTERBREW ACQUIRED A 52 STAKE IN BORSODI IN OCTOBER 1991 9309300171 930930 MICHAELS STORES POSTS GAINS IRVING TEXAS MICHAELS STORES INC SAID SEPTEMBER SALES ROSE 32 TO 478 MILLION FROM 361 MILLION A YEAR EARLIER A GAIN THE COMPANY ATTRIBUTED IN PART TO A NEW ADVERTISING CIRCULAR THE ARTS AND CRAFTS RETAILER SAID SALES IN STORES OPEN A YEAR OR MORE ROSE 10 FOR THE MONTH FOR THE YEAR TO DATE SALES CLIMBED 24 TO 3137 MILLION FROM 2539 MILLION A YEAR AGO WITH SALES AT STORES OPEN A YEAR OR MORE RISING 4 9309300170 930930 KROGER TO REDEEM DEBENTURES CINCINNATI KROGER CO SAID IT WILL REDEEM ITS 15 1/2 JUNIOR SUBORDINATED DISCOUNT DEBENTURES DUE 2008 THE GROCERY STORE OPERATOR WILL PAY 100 OF THE PRINCIPAL AMOUNT KROGER SAID 500 MILLION OF THE BONDS IS OUTSTANDING 9309300169 930930 WHO'S NEWS METROPOLITAN LIFE INSURANCE CO METROPOLITAN LIFE INSURANCE CO NEW YORK PAT VITACOLONNA 61 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER OF METLIFE HEALTHCARE CORP METLIFE'S HMO UNIT MR VITACOLONNA WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF FHP INC A UNIT OF FHP INTERNATIONAL CORP 9309300168 930930 LETTERS TO THE EDITOR GOVERNMENT AGENTS AS BOUNTY HUNTERS THANK YOU FOR RUNNING GIDEON KANNER'S AUG 25 RULE OF LAW COLUMN NEVER MIND ONLY' PROPERTY RIGHTS WERE VIOLATED I HOPE AMERICANS ARE FINALLY WAKING UP TO THE MASSIVE VIOLATIONS OF THEIR RIGHTS TAKING PLACE IN THE NAME OF THE WAR ON DRUGS THE MURDER OF DONALD SCOTT DURING A RAID ON HIS RANCH BY GOVERNMENT AGENTS SEEKING MARIJUANA PLANTS IS JUST THE LATEST TRAGIC EXAMPLE ONE OF THE THINGS I FIND MOST DISTURBING IS THE APPARENT REACTION THAT THE RAID WOULD HAVE BEEN JUSTIFIED HAD SOME MARIJUANA PLANTS ACTUALLY BEEN FOUND IT IS TRULY FRIGHTENING TO CONSIDER A POLICY THAT BELIEVES A 5 MILLION RANCH OR EVEN A 40000 HOUSE OR A 7000 CAR MUCH LESS A PERSON'S LIFE SHOULD BE FORFEITED TO THE GOVERNMENT AS PUNISHMENT FOR GROWING A FEW MARIJUANA PLANTS THE SCOTT CASE IS YET ANOTHER EXAMPLE OF OUR GOVERNMENT AGENTS WHOSE JOB OSTENSIBLY IS TO PROTECT THE PEOPLE ENGAGING IN AN ABUSE OF THE PEOPLE'S RIGHTS WHETHER PERSONAL OR PROPERTY RIGHTS CIVIL FORFEITURE HAS BECOME AN OPEN INVITATION TO SUCH AGENTS TO ENGAGE IN RIGHTS VIOLATIONS FOR MONETARY GAIN IT IS TIME FOR CONGRESS TO REVAMP THE FORFEITURE STATUTES TO ELIMINATE THESE SORTS OF ABUSES IT IS ALSO HIGH TIME THAT WE AS A COUNTRY REEVALUATE THE WAR ON DRUGS PROF KANNER'S ARTICLE DEPICTING THE HORROR STORY OF A DEPUTY SHERIFF'S UNWARRANTED SLAYING OF A CITIZEN IS ADDITIONAL PROOF AS IF MORE IS NEEDED THAT GOVERNMENTS SIMPLY CAN'T BE TRUSTED IT ALSO REMINDED ME OF A SAYING THAT NEVER CAUGHT ON ALTHOUGH IT GETS MORE GERMANE EVERY DAY BEWARE OF YOUR LOCAL POLICE THEY ARE ARMED AND DANGEROUS DONALD SCOTT'S DEATH AND THE EVENTS LEADING TO IT CANNOT BE FORGOTTEN THE MOST FUNDAMENTAL INDIVIDUAL RIGHT IS TO BE SECURE IN ONE'S OWN HOME WITHOUT THIS THE WHOLE CONCEPT OF HUMAN RIGHTS IS A SHAM ANY LAW THAT TURNS THE POLICE AWAY FROM BEING ECONOMICALLY NEUTRAL ENFORCERS INTO PRIVATEERS WHO LOOT CITIZENS MUST BE REPEALED THE SEIZURE LAWS ARE BUT ONE EXAMPLE OF AN AVALANCHE OF NEW RULES SMOTHERING THE INDIVIDUAL AND TAKING AWAY HIS FREEDOM THE GREAT FRENCH POLITICAL ECONOMIST FREDERIC BASTIAT SAID THE LAW TO BE RESPECTED MUST FIRST BE RESPECTABLE 9309300167 930930 ON TELEVISION FOR THE FIRST TIME THE DAY IT RAINED ALIEN CHICKENS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL LANTANA FLA EXTRA EXTRA ALIEN LIFE FORM TO APPEAR ON PRIME TIME TELEVISION YES THE WEEKLY WORLD NEWS THE SUPERMARKET TABLOID THAT REPORTED ON THE TOOTHLESS VAMPIRE FORCED TO RAID BLOOD BANKS AND THE DAY LINCOLN'S CORPSE SAID GENTLEMEN WHERE AM I IS GOING TO MAKE ITS DEBUT ON NETWORK TELEVISION THE ONEHOUR SHOW WILL FEATURE SPOTS REPORTED BY THE TABLOID'S OWN STAFF ON A FAITHHEALING MECHANIC WHO FIXES CARS BY TOUCHING THEM AND PHOTOGRAPHS THAT PROVE BEYOND A DOUBT THAT HUMANS ARE LIVING ON MARS ACCORDING TO EDWARD CLONTZ EDITOR OF WEEKLY WORLD NEWS MR CLONTZ THE SHOW'S ANCHOR SAYS HE PLANS TO STYLE HIMSELF AFTER MIKE WALLACE THERE IS AT LEAST ONE DIFFERENCE BETWEEN MR CLONTZ AND MR WALLACE WE DON'T ASK THAT MANY QUESTIONS SAID MR CLONTZ I DON'T SCRUTINIZE PHOTOS FOR A REALITY CHECK IF IT LOOKS REAL TO ME I SAY LET THE READER DECIDE THE SHOW IS A JOINT VENTURE BETWEEN THE WEEKLY WORLD NEWS'S PUBLISHER ENQUIRER/STAR GROUP INC AND BRANDON TARTIKOFF FORMER CHAIRMAN OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT STUDIO AND GENERAL ELECTRIC CO'S NBC ENTERTAINMENT UNIT TWO SPACE ALIENS WHO SAY THEY'RE LIVING UNDER HUMAN GUISE WILL APPEAR LIVE THE FIRST TIME TWO ALIENS HAVE APPEARED ON TELEVISION TOGETHER MR CLONTZ CLAIMED THERE WILL ALSO BE PLENTY OF PICTURES OF UFOS THERE WILL BE A VISIT TO THE PLACE WHERE NOAH'S ARK WAS FOUND PENNSYLVANIA AND WHERE SATAN'S SKULL WAS UNEARTHED NEW MEXICO AND THERE WILL BE PERIODIC SHOTS OF MIRACLES AND WONDERS WEEKLY WORLD NEWS REPORTERS WILL STAKE OUT SPOTS WHERE MIRACLES TEND TO OCCUR AND MAYBE WE'LL GET A MIRACLE ON CAMERA MR CLONTZ SAYS MR TARTIKOFF NOW PRESIDENT OF AN INDEPENDENT PRODUCTION COMPANY MOVING TARGET PRODUCTIONS IN NEW ORLEANS WILL PRODUCE THE SHOW CBS BOUGHT THE SPECIAL WHICH WILL BE TAPED IN NOVEMBER AND ENQUIRER/STAR GROUP SAID IT EXPECTS A SERIES TO RESULT MR TARTIKOFF COULDN'T BE REACHED FOR COMMENT BUT THE SHOW HARBORS A LOFTIER PURPOSE THAN SIMPLY BECOMING A REGULAR SERIES IT MAY OPEN COMMUNICATION WITH ALIENS OUT THERE BECAUSE IT'S A FORUM FOR THEM MR CLONTZ SAID DAILY NEWSPAPERS TEND TO HANG UP ON THEM 9309300166 930930 LAW LEGAL BEAT THREATS TENSION ELECTRIFY TRADE CENTER TRIAL BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK UNDERSCORING THE HIGH TENSION AND INTENSE SECURITY SURROUNDING THE WORLD TRADE CENTER BOMBING TRIAL PROSECUTORS IN THE CASE HAVE BEEN MOVED WITH THEIR FAMILIES TO UNDISCLOSED LOCATIONS WITH OPENING STATEMENTS SET TO BEGIN NEXT WEEK IN FEDERAL COURT HERE THE TWO LEAD GOVERNMENT LAWYERS ARE LIVING IN SECRET SURROUNDINGS BECAUSE THEY HAVE RECEIVED THREATS THAT LAWENFORCEMENT OFFICIALS CONSIDER PARTICULARLY CREDIBLE ACCORDING TO INDIVIDUALS FAMILIAR WITH THE US ATTORNEY'S OFFICE WHERE THE PROSECUTORS WORK EVEN IN ORGANIZEDCRIME AND DRUGCARTEL CASES THREATS TO PROSECUTORS HAVE BEEN RARE AND RELOCATIONS RARER STILL SAY OFFICIALS OF THE US MARSHAL'S SERVICE WHICH IS RESPONSIBLE FOR PROTECTING JUDGES ATTORNEYS AND WITNESSES THE OFFICIALS WOULDN'T DISCLOSE THE NATURE OF THE DANGER IN THIS CASE OR WHETHER THERE ARE ANY SUSPECTS THE EXTRA PROTECTION FOR THE PROSECUTORS IS BEING MIRRORED BY EXTREMELY TIGHT SECURITY PRECAUTIONS AT THE GRAND NEOCLASSIC COURT BUILDING IN LOWER MANHATTAN IN ADDITION TO A SECOND LAYER OF METAL DETECTORS AND XRAY MACHINES EXTRA POLICE AND SECURITY GUARDS HAVE BEEN INSTALLED OUTSIDE THE CAVERNOUS COURTROOM AND FOR THEIR PRIVACY AND PROTECTION THE 12 JURORS AND SIX ALTERNATES WHOSE SELECTION IS EXPECTED TO BE COMPLETED TODAY HAVE HAD ONLY THEIR SEX OCCUPATION AND COUNTY OF RESIDENCE DISCLOSED THEY WILL BE IDENTIFIED PUBLICLY BY NUMBER ALTHOUGH THE JURORS WILL BE PLAINLY VISIBLE IN OPEN COURT AND ARE EXPECTED TO BE ABLE TO GO HOME EACH NIGHT US MARSHALS MAY CHOOSE TO ESCORT THE JURORS AT LEAST PART OF THE WAY TO AND FROM THE COURTHOUSE ACCORDING TO US MARSHAL ROMOLO J IMUNDI IN NEW YORK THE SAME IS TRUE OF THE PRESIDING JUDGE KEVIN T DUFFY WHO HAS NOT RECEIVED ANY THREATS MR IMUNDI SAYS WITHIN THE COCOON OF SECURITY THOUGH THE TRIAL IS LIKELY TO PLAY AS A RATHER PROSAIC LEGAL EXERCISE WITH LITTLE OPPORTUNITY FOR EMOTIONAL COURTROOM ORATORY OR SURPRISE REVELATIONS THE PROSECUTION IS EXPECTED TO SPEND THE NEXT SEVERAL WEEKS USING EXPERT WITNESSES TO EXPLAIN IN DETAIL HOW THE BOMB THAT DAMAGED THE LANDMARK SKYSCRAPERS ON FEB 26 WAS MADE FROM EASILY PURCHASED PARTS THEY THEN WILL TRY TO LINK ITS MANUFACTURE AND DETONATION TO MATERIALS LATER FOUND IN THE DEFENDANTS' HOMES AND IN A RENTAL STORAGE UNIT IN WHICH THE BOMB WAS ALLEGEDLY MANUFACTURED CIRCUMSTANTIAL EVIDENCE AND THE TESTIMONY OF WITNESSES MUCH OF WHICH HAS ALREADY BEEN DISCLOSED IN THE PRESS WILL BE USED IN AN EFFORT TO CONNECT THE FOUR DEFENDANTS TO EACH OTHER THE DEFENSE IN TURN IS EXPECTED TO CALL INTO QUESTION EVERY LINK IN A CHAIN THEY WILL ARGUE BINDS THE DEFENDANTS NOT BY THEIR ACTIONS BUT BY DINT OF THEIR RELIGIOUS AFFILIATIONS THEY WILL ASSERT THAT EVIDENCE OF FRIENDSHIP BE PRACTICING MUSLIMS WHO ARE ALL UNINDICTED COCONSPIRATORS IN A SECOND BROADER TERRORISM CASE INVOLVING SHEIK OMAR ABDEL RAHMAN AND 14 OTHERS DOESN'T NECESSARILY PROVE A CRIMINAL CONSPIRACY NO TRIAL DATE HAS BEEN SET IN THAT CASE ALTHOUGH IT'S EXPECTED TO BEGIN SOMETIME NEXT YEAR THE DEFENDANTS IN THE CURRENT CASE ARE MOHAMMED A SALAMEH 25 YEARS OLD AN UNEMPLOYED PALESTINIAN WHO ALLEGEDLY RENTED THE YELLOW RYDER VAN THAT LATER EXPLODED IN THE GARAGE BENEATH THE TRADE CENTER NIDAL A AYYAD 25 A FORMER CHEMICAL ENGINEER WITH ALLIEDSIGNAL CORP WHO ALLEGEDLY PURCHASED THE NECESSARY CHEMICALS FOR THE EXPLOSIVES MAHMUD ABOUHALIMA 33 A TAXI DRIVER AND ALLEGED BOMBING MASTERMIND WHO FLED TO HIS NATIVE EGYPT AFTER THE BOMBING AND AHMAD M AJAJ 27 ANOTHER PALESTINIAN WHO OFFICIALS BELIEVE ENTERED THE COUNTRY LAST YEAR CARRYING HOWTO GUIDES ON EXPLOSIVES DESPITE THE STRAIGHTFORWARD NATURE OF MUCH OF THE EVIDENCE OBSERVERS AGREE THAT THE QUALITY OF THE LAWYERING ON EACH SIDE COULD PROVE CRITICAL AT THE OUTSET THE TWO PROSECUTORS BOTH SEASONED TRIAL LAWYERS ARE BELIEVED BY MANY LEGAL OBSERVERS TO HAVE AN ADVANTAGE MOST OF THE DEFENSE LAWYERS ARE LESS EXPERIENCED THE TWO LEAD PROSECUTORS J GILMORE CHILDERS 38 AND HENRY J DEPIPPO 33 ARE DESCRIBED BY COLLEAGUES AND FORMER ADVERSARIES AS EXTREMELY COMPETENT AND THOROUGH ALBEIT QUITE DRY IN THEIR COURTROOM PRESENTATIONS BOTH CURRENTLY HOLD ADMINISTRATIVE POSITIONS IN THE SOUTHERN DISTRICT OF NEW YORK PROSECUTOR'S OFFICE AND THUS DON'T CARRY SIGNIFICANT ONGOING CASELOADS THAT MIGHT INTERFERE WITH THEIR CONDUCTINGAN ALLCONSUMING TRIAL EXPECTED TO LAST AS LONG AS FOUR MONTHS OTHER LITIGATORS DESCRIBE THEIR UNDERSTATED APPROACH IN THE COURTROOM AS AN ASSET YOU CAN SAY THAT THEY ARE DULL BUT VERY EFFECTIVE IN THEIR DULLNESS SAYS CRIMINAL DEFENSE LAWYER LAWRENCE HOCHEISER WHO HAS BATTLED WITH THE MAIN PROSECUTOR MR CHILDERS MR HOCHEISER SAYS HE BELIEVES THE PROSECUTOR'S TRIAL TECHNIQUE WORKS WELL ESPECIALLY WHEN A CASE INVOLVES A WEB OF CIRCUMSTANTIAL EVIDENCE AND POTENTIAL DEFENSE ALLEGATIONS OF OVERREACHING BY LAWENFORCEMENT AUTHORITIES SAYS MR HOCHEISER I BELIEVE THAT JURORS TEND TO OVERLOOK MISSING PIECES OF EVIDENCE BASED UPON THEIR CONFIDENCE IN THE PROSECUTOR THAT IS THAT THE PROSECUTOR IS TOO ETHICAL TO OVERLOOK THE DEFENDANT'S RIGHTS OR POLICE MISCONDUCT CHILDERS GIVES THAT KIND OF IMPRESSION HE SAYS A CRIMINAL LAWYER FOR MORE THAN A DOZEN YEARS MR CHILDERS IS A VETERAN OF AT LEAST ONE OTHER LARGE MULTIDEFENDANT TRIAL A SUCCESSFUL PROSECUTION OF BROOKLYN ORGANIZEDCRIME LEADERS REFERRED TO AS THE COMMISSION MR DEPIPPO IN THE SECOND SEAT HAS WON A NUMBER OF PROSECUTIONS AGAINST DRUG TRAFFICKERS ON THE DEFENSE SIDE HASSEN IBN ABDELLAH 35 REPRESENTING MR ABOUHALIMA IS A FORMER STATE PROSECUTOR FROM ELIZABETH NJ WHILE ATIQ R AHMED 38 REPRESENTING MR AYYAD IS A NATIVE OF INDIA WHO PRACTICES IN WASHINGTON DC AND ITS MARYLAND SUBURBS LIKE THEIR CLIENTS BOTH LAWYERS ARE PRACTICING MUSLIMS ROBERT PRECHT 39 WHO REPRESENTS MR SALAMEH IS PART OF THE RESPECTED FEDERAL DEFENDERS UNIT OF THE LEGAL AID SOCIETY BUT HE DIDN'T BEGIN TRIAL WORK UNTIL FOUR YEARS AGO HAVING PREVIOUSLY ARGUED TO PANELS OF JUDGES AT THE APPELLATE LEVEL WILLIAM KUNSTLER THE VETERAN LEFTLEANING LAWYER WHO IS EXPECTED TO REPRESENT SHEIK OMAR RAHMAN IN THE SECOND TRIAL SAYS HE IS CONCERNED THAT THE CURRENT DEFENSE TEAM ISN'T WELL ENOUGH PREPARED TO DO BATTLE WITH JUDGE DUFFY WHO IS KNOWN FOR HIS UNPREDICTABILITY AND IRASCIBILITY THEIR HEARTS ARE IN THE RIGHT PLACE BUT THEY ARE UNSEASONED AND NOT USED TO SLUGGING IT OUT WITH A FEDERAL JUDGE MR KUNSTLER SAYS SO FAR THE DEFENSE LAWYERS IN THE CASE HAVE CONDUCTED A LOOSELY COORDINATED STRATEGY WITH EACH OTHER SHARING SOME INFORMATION AND COOPERATING IN THE SELECTION OF A JURY AUSTIN V CAPRIELLO 46 THE ATTORNEY FOR MR AJAJ AND THE MOST EXPERIENCED OF THE DEFENSE COUNSEL SAYS THE DEFENDANTS WILL NOT WORK IN LOCK STEP BECAUSE THEIR INTERESTS VARY UNLIKE IN MOB TRIALS THERE IS NO BOSS HERE TO DIRECT US SAYS MR CAPRIELLO BUT ALL THE DEFENSE LAWYERS DID JOIN IN REQUESTING THAT THE JUDGE PUSH HARD TO FIND OUT HOW PROSPECTIVE JURORS FELT ABOUT TERRORISM JUDGE DUFFY DECLINED TO DO SO DURING THE ARDUOUS JURY SELECTION PROCESS THAT CULMINATED YESTERDAY INSTEAD HE TRIED TO GET AT JURORS' PREJUDICES IN A GENERAL SENSE THE 13 BILLION SETTLEMENT BETWEEN MICHAEL R MILKEN AND HUNDREDS OF THOUSANDS OF CLAIMANTS AND INVESTORS WAS MADE FINAL BY A FEDERAL JUDGE IN NEW YORK THE SETTLEMENT WHICH WAS FIRST APPROVED BY US DISTRICT JUDGE MILTON J POLLACK IN MARCH 1992 INVOLVES MORE THAN 180 LAWSUITS THE SUITS ALLEGED AMONG OTHER THINGS THAT MR MILKEN CAUSED THE COLLAPSE OF OVER 200 SAVINGS AND LOAN ASSOCIATIONS AND INSURANCE COMPANIES BY MANIPULATING THE MARKET FOR JUNK BONDS HE HAS DENIED THE ALLEGATIONS UNDER THE TERMS OF THE DEAL MR MILKEN IS TO CONTRIBUTE 900 MILLION HIS FORMER COLLEAGUES 300 MILLION AND DREXEL BURNHAM LAMBERT'S INSURANCE COMPANIES 100 MILLION ALL OF THE FUNDS HAVE BEEN DEPOSITED THOUGH SOME ARE IN SECURITIES FORM AND ARE STILL TO BE LIQUIDATED LAWYERS SAID THE FEDERAL DEPOSIT INSURANCE CORP AND RESOLUTION TRUST CORP WILL RECEIVE 503 MILLION WHILE SEVERAL OTHER CLAIMANT GROUPS INCLUDING POLICYHOLDERS OF EXECUTIVE LIFE INSURANCE CO WILL GET 713 MILLION FIXED CREDITORS OF DREXEL BURNHAM WILL REALIZE 83 MILLION JUDGE POLLACK WHO CELEBRATED HIS 87TH BIRTHDAY YESTERDAY WAS ROUNDLY PRAISED BY LAWYERS INVOLVED FOR HIS HANDLING OF THE COMPLEX SETTLEMENT ISSUES I CONSIDER THIS MY LIFETIME MASTERPIECE THE JUDGE SAID AS HE SIGNED THE PAPERS ROSE FIRM BLOOMS IN DC ONE OF THE BESTCONNECTED LAW FIRMS IN WASHINGTON IS FINALLY OPENING A WASHINGTON OFFICE THE ROSE LAW FIRM CONFIRMED REPORTS THAT IT WAS SETTING UP A BEACHHEAD ON THE WASHINGTON LEGAL SCENE A FEW BLOCKS FROM THE CURRENT RESIDENCE OF ITS MOST FAMOUS ALUMNA HILLARY RODHAM CLINTON THE OFFICE WITH A SINGLE ATTORNEY IS SCHEDULED TO OPEN NEXT WEEK AND REPRESENTS THE FIRST TIME THAT THE LITTLE ROCK ARK FIRM HAS EVER EXPANDED OUTSIDE ARKANSAS OFFICIALS OF THE 62LAWYER FIRM DOWNPLAYED THE SIGNIFICANCE OF THE MOVE WE ARE JUST OPENING THIS OFFICE TO EXPAND OUR SERVICES TO OUR ARKANSASBASED CLIENTS SAID RON CLARK CHIEF OPERATING OFFICER IT IS A SORT OF TRIALBALLOONTYPE THING MR CLARK ADDED WE HAVE BEEN CONSIDERING OPENING A DC OFFICE FOR SEVERAL YEARS AND NEVER WANTED TO TAKE THE STEP I GUESS THE LEVEL OF OUR BUSINESS IN THAT AREA HAS INCREASED SOMEWHAT TO JUSTIFY IT THE MOVE WAS FIRST REPORTED BY THE SCRIPPS HOWARD NEWS SERVICE ROSE SAID ALLEN W BIRD II A LEGISLATIVEAFFAIRS SPECIALIST WOULD HEAD THE NEW OFFICE AMONG OTHER ACHIEVEMENTS MR BIRD WAS THE CHIEF LOBBYIST TO THE ARKANSAS LEGISLATURE FOR THENGOV BILL CLINTON IN THE LATE 1970S MR BIRD SAID THE FIRM IS SENSITIVE TO POTENTIAL CONFLICTS OF INTEREST I THINK WE WILL PURSUE CONTACTING ANYONE IN THE ADMINISTRATION WHEN SUCH CONTACT IS LEGAL ETHICAL AND APPROPRIATE HE SAID BUT WE WOULD NEVER TAKE ADVANTAGE OF ANY PRIOR ACQUAINTANCESHIPS NOR DO WE THINK ANYONE IN THE ADMINISTRATION WOULD ALLOW SUCH CONTACT WHEN INAPPROPRIATE RICHARD B SCHMITT IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9309300165 930930 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9309300164 930930 CORRECTION THE NAME OF THE AUTHOR OF A SEPT 28 LETTER MURDERERS WHO HIDE BEHIND CLERICAL GARB WAS MISSPELLED HE IS E STUART HENDRICKSON MD OF MURRYSVILLE PA 9309300163 930930 CORRECTIONS & AMPLIFICATIONS GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS CORP UNIT POSTED SINGLEDIGIT REVENUE INCREASES IN EACH OF THE PAST THREE QUARTERS AND EXPECTS TO DO SO IN THE THIRD QUARTER IN AN ARTICLE YESTERDAY A COMPANY SPOKESMAN INCORRECTLY STATED THAT EDS POSTED SINGLEDIGIT REVENUE INCREASES IN EACH OF THE PAST FOUR QUARTERS 9309300162 930930 FINANCING BUSINESS MEXICO EQUITY & INCOME FUND INC MEXICO EQUITY & INCOME FUND INC NEW YORK SAID IT BEGAN A RIGHTS OFFERING FOR SHAREHOLDERS TO PURCHASE AS MANY AS 22 MILLION COMMON SHARES THE CLOSEDEND FUND SAID IT WILL ISSUE ONE RIGHT FOR EACH SHARE OF RECORD YESTERDAY STOCKHOLDERS ARE ENTITLED TO PURCHASE ONE SHARE OF NEWLY ISSUED COMMON STOCK AT A PRICE OF 13875 FOR EVERY THREE RIGHTS DELIVERED TO THE COMPANY BY OCT 19 THE COMPANY WHICH CURRENTLY HAS ABOUT 64 MILLION COMMON SHARES OUTSTANDING SAID PROCEEDS FROM THE OFFERING WILL BE USED FOR INVESTMENT 9309300161 930930 FINANCING BUSINESS SOUTHWEST SECURITIES GROUP INC SOUTHWEST SECURITIES GROUP INC SAID IT SOLD 1480000 COMMON SHARES AT 1050 A SHARE AFTER EXPANDING THE OFFERING FROM 12 MILLION SHARES THE SECURITIES SERVICES CONCERN SAID IN DALLAS THAT IT WILL RECEIVE THE PROCEEDS FROM 12 MILLION SHARES WITH SELLING STOCKHOLDERS RECEIVING THE REMAINING PROCEEDS THE COMPANY WILL USE PROCEEDS TO EXPAND ITS SECURITIES TRANSACTIONPROCESSING BUSINESS AND FOR GENERAL CORPORATE PURPOSES RAYMOND JAMES & ASSOCIATES INC LED THE UNDERWRITING 9309300160 930930 TECHNOLOGY HEALTHCARE UNIT SIGNS PACT BLUE BELL PA A UNIT OF US HEALTHCARE INC SAID IT SIGNED AN AGREEMENT TO DEVELOP A MANAGEDCARE INFORMATION SYSTEM FOR THE UNITED KINGDOM'S LARGEST INDEPENDENT HEALTH INSURER US QUALITY ALGORITHMS SAID THE INFORMATION SYSTEM FOR BRITISH UNITED PROVIDENT ASSOCIATION WHICH COVERS THREE MILLION PEOPLE WILL HELP MONITOR THE PERFORMANCE OF THE ASSOCIATION'S MEDICALDELIVERY SYSTEM THE COMPANY SAID THE INFORMATION SYSTEM IS EXPECTED TO BEGIN OPERATING IN EARLY 1994 9309300159 930930 JOY SELLS NOTES PITTSBURGH JOY TECHNOLOGIES INC SAID IT COMPLETED THE SALE OF 200 MILLION OF ITS 1025 10YEAR UNSECURED SENIOR NOTES THE COMPANY SAID PROCEEDS WILL BE USED TO PREPAY DEBT INCLUDING THE COMPANY'S JUNIOR SUBORDINATED NOTES COMPANY OFFICIALS DIDN'T RETURN PHONE CALLS REQUESTING FURTHER EXPLANATION JOY MAKES AND SERVICES MINING EQUIPMENT AND SUPPLIES AIRPOLLUTION AND ASHHANDLING EQUIPMENT 9309300158 930930 INDUSTRY FOCUS EUROPEAN PHONE COMPANIES REACH OUT FOR PARTNERS COMPETITION TECHNOLOGY SPUR SCRAMBLE FOR INTERNATIONAL ALLIANCES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AFTER DECADES OF STICKING TO THEIR OWN NATIONAL TURFS EUROPE'S MAJOR TELEPHONE COMPANIES ARE REACHING OUT TO ONE ANOTHER AND TO US COMPANIES PUSHED BY CHANGING TECHNOLOGY RISING COMPETITION AND A EUROPEAN COMMUNITY DEADLINE OF 1998 FOR ENDING ALL STATE MONOPOLIES IN THE SECTOR THE ONCEHIDEBOUND EUROPEAN PHONE COMPANIES ARE FORMING INTERNATIONAL PARTNERSHIPS INITIALLY THEY WILL CARRY INTEROFFICE PHONE CALLS AND DATA ACROSS THE WORLD FOR THE LIKES OF DUPONT CO UNILEVER NV NESTLE SA AND OTHER MULTINATIONAL CORPORATIONS BUT BY THE END OF THE DECADE THEY'RE LIKELY TO BE COMPETING FOR THE BUSINESS OF ANY TOM DIK OR HORST OFFERING A WIDE RANGE OF LONGDISTANCE SERVICES IN MOST ANY EUROPEAN COUNTRY THE OUTCOME WILL RESHAPE THE EUROPEAN TELECOMMUNICATIONS INDUSTRY HASTEN MARKET DEREGULATION AND IN THE COURSE OF THIS DECADE GRADUALLY CUT THE CONTINENT'S STEEP LONGDISTANCE PHONE CHARGES AS THE PARTNERSHIPS TAKE SHAPE I THINK PRICE WARS ARE INEVITABLE AND THEY LOOK GOOD FOR THE CORPORATE CUSTOMER SAYS GRAHAM MARRINER CHAIRMAN OF THE TELECOMMUNICATIONS MANAGERS ASSOCIATION A BRITISH TRADE ASSOCIATION FOR CORPORATE TELEPHONE USERS ANY RELIEF FROM EUROPE'S SKYHIGH INTERNATIONAL PHONE TARIFFS WOULD BE WELCOME ON AVERAGE US CORPORATIONS SPEND TWO TO THREE TIMES MORE ON THEIR PHONE BILLS IN EUROPE THAN THEY DO IN THE US ACCORDING TO A US CHAMBER OF COMMERCE SURVEY LAST YEAR SUCH BENEFITS ARE STILL FAR IN THE FUTURE FOR STARTERS EUROPEAN POLITICIANS HAVEN'T HAD THEIR FINAL SAY ON THE MATTER IN THE PAST THEY'VE OFTEN ACTED AS A BRAKE TO SIMILAR MARKETOPENING INITIATIVES IN THE STATEDOMINATED TELECOMMUNICATIONS SECTOR SO FAR ONLY THREE INDUSTRY DEALS HAVE BEEN ANNOUNCED IN EUROPE AND OF THOSE ONLY ONE ALLIANCE IS OPERATING TODAY IN THESE EARLY STAGES THE PHONE COMPANIES ARE SELLING HYPE MORE THAN SERVICES SAYS NICHOLAS WHITE EUROPEAN VICE CHAIRMAN OF AN INDUSTRY LOBBYING ORGANIZATION THE INTERNATIONAL TELECOMMUNICATIONS USERS GROUP BUT NO ONE DOUBTS THAT BIG CHANGES ARE AFOOT THAT BY THE END OF THE DECADE WILL RADICALLY RESHAPE THE WAY PHONE SERVICES ARE PROVIDED AND PRICED AROUND EUROPE THE EUROPEAN TELECOMMUNICATIONS INDUSTRY IS AT A CRUCIAL JUNCTURE SAYS MICHEL HIRSCH EXECUTIVE VICE PRESIDENT INTERNATIONAL OF STATEOWNED FRANCE TELECOM SA ULTIMATELY HE SAYS THERE'S ROOM FOR ONLY TWO OR THREE BIG PLAYERS IN THE EUROPEAN MARKET FOR INTERNATIONAL TELECOMMUNICATIONS SERVICES ANY PHONE COMPANIES LEFT OUTSIDE THOSE MEGACARRIER ALLIANCES RISK GETTING STUCK WITH A TRIBUTARY ROLE THEY'LL STILL RUN THE LOCAL PHONE SERVICES IN THEIR HOME COUNTRIES BUT IN THE LUCRATIVE LONGDISTANCE MARKET THEY'LL SIMPLY BE PLUGGING A GROWING PROPORTION OF THEIR TRAFFIC INTO GLOBAL NETWORKS MANAGED BY THE BIG ALLIANCES A FEW MAJOR ALLIANCES ARE EMERGING THE SPLASHIEST WAS BRITISH TELECOMMUNICATIONS PLC'S AGREEMENT IN JUNE TO SPEND 43 BILLION FOR A 20 STAKE IN MCI COMMUNICATIONS INC THE SECONDBIGGEST US LONGDISTANCE CARRIER A SECOND ALLIANCE DUBBED EUNETCOM IS FORMING AROUND FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM YET A THIRD PLAYER IS UNISOURCE AN ALLIANCE AMONG THE DUTCH SWEDISH AND SWISS PHONE COMPANIES A FOURTH FORCE IS AMERICAN TELEPHONE & TELEGRAPH CO WHICH BEGAN ITS OWN INTERNATIONAL ALLIANCE THIS SPRING IN ASIA BUT IS STILL TRYING TO LURE EUROPEAN PARTNERS AND TWO WILD CARDS IN THE PACK ARE USBASED SPRINT CORP AND BRITAIN'S CABLE & WIRELESS PLC BOTH OF WHICH HAVE BEEN ACTIVE PARTICIPANTS IN THE INDUSTRY TALKS BUT HAVE YET TO SHOW THEIR HANDS THIS IS A RADICAL DEPARTURE FROM THE INDUSTRY'S COZY OLD WAYS WE HAD A KIND OF FEDERATION AN OPECTYPE SITUATION OPERATING IN INTERNATIONAL TELECOMMUNICATIONS SAYS GERARD VAN VELZEN EXECUTIVE VICE PRESIDENT OF PTT TELECOM BV THE DUTCH STATE PHONE COMPANY IT MEANT YOU WORKED HARD STAYED IN YOUR OWN TERRITORY AND OPERATED WITH OTHER COUNTRIES VIA GATEWAYS IN THE TECHNICAL AND COMMERCIAL SENSE NOWADAYS THE SITUATION IS COMPLETELY DIFFERENT FOR THE FIRST TIME HE SAYS EUROPEAN TELEPHONE COMPANIES ARE HAVING TO THINK MAKE STRATEGY AND SEEK ALLIANCES LIKE PRIVATE COMPANIES RATHER THAN GOVERNMENT AGENCIES BT'S 43 BILLION MCI INVESTMENT ANNOUNCED JUNE 2 WAS THE STARTING GUN FOR THE INDUSTRY TALKS BT FIRED A SECOND SHOT EARLIER THIS MONTH WHEN IT ANNOUNCED A SEPARATE JOINT VENTURE WITH SPAIN'S BANCO SANTANDER SA USING A DATA NETWORK THAT THE BIG SPANISH BANK HAD ASSEMBLED TO CONNECT ITS BRANCHES THE PROJECT HOPES TO GRAB A 20 SHARE OF THE DATACOMMUNICATIONS MARKET FROM THE SPANISH STATE PHONE COMPANY BT'S BIGGEST POTENTIAL EUROPEAN RIVAL IS EUNETCOM THE JOINT VENTURE OF FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM FOR MONTHS THEY HAD BEEN TRYING TO WOO MCI AS THEIR OWN PARTNER HAVING LOST OUT TO BT THEY RECENTLY CONFIRMED THEY WERE PUSHING AHEAD ON THEIR OWN WITH EUNETCOM KLAUS GREWLICH TELEKOM'S DIRECTOR GENERAL FOR INTERNATIONAL AFFAIRS SAYS EUNETCOM HAS SIGNED MEMORANDA WITH A NUMBER OF MULTINATIONAL COMPANIES FOR IT TO CONDUCT FEASIBILITY STUDIES ON BIDDING FORMALLY FOR THEIR BUSINESS BUT THAT MAY BE ONLY THE START FRANCE TELECOM'S MR HIRSCH SAYS HE'S INTERESTED IN THE POSSIBILITY OF SWAPPING SHARES WITH DEUTSCHE BUNDESPOST TELEKOM MR GREWLICH CALLS THE FRENCH PROPOSAL AN EXPRESSION OF CONFIDENCE IN THE FUTURE AND IT MIGHT HAPPEN BUT HE ADDS WE THINK IT'S PREMATURE TO PUBLICLY DISCUSS THIS UNTIL AFTER THE GERMAN GOVERNMENT FINISHES SORTING OUT ITS PLANS TO PRIVATIZE THE STATE PHONE COMPANY A WIDERANGING FRANCOGERMAN ALLIANCE WOULD DWARF BTMCI AND RANK SECOND ONLY TO AT&T IN THE WORLD MARKET BUT THE DOOR ISN'T CLOSED TO AT&T GETTING INVOLVED WITH EUNETCOM MR HIRSCH AND MR GREWLICH SAY THEY HAVEN'T EXCLUDED THE POSSIBILITY OF COLLABORATING WITH AT&T IN SOME FASHION AND AT&T SAYS IT'S WILLING TO TALK JOHN FOSTER PRESIDENT AND MANAGING DIRECTOR OF AT&T'S COMMUNICATIONS SERVICES DIVISION IN EUROPE SAYS OUR PREFERENCE HAS BEEN AND CONTINUES TO BE TO EXPAND IN EUROPE WITH THE EXISTING OPERATORS AS OPPOSED TO ENTERING TOTALLY ON OUR OWN WE REMAIN HOPEFUL WE CAN REACH SOME BASIS FOR AN AGREEMENT HE SAYS 9309300157 930930 HEARD ON THE STREET US INVESTORS POISED TO ENTER SOUTH AFRICAN MARKET BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH AFRICA'S CHANGING POLITICAL CLIMATE IS SENDING PRICES HIGHER ON THE 106YEAROLD JOHANNESBURG STOCK EXCHANGE AND SOME SECURITIES FIRMS RECOMMEND THAT US INVESTORS HOP ON BOARD THAT'S BECAUSE FOR THE FIRST TIME SINCE THE MID1980S SOME US PENSION FUNDS COLLEGE ENDOWMENTS AND SOCIALLY RESPONSIBLE MUTUAL FUNDS CAN BUY SHARES IN SOUTH AFRICAN COMPANIES THE BARRIERS BEGAN FALLING LAST WEEK AFTER AFRICAN NATIONAL CONGRESS LEADER NELSON MANDELA CALLED FOR THE LIFTING OF SANCTIONS AGAINST SOUTH AFRICA CITING THE COUNTRY'S PROGRESS TOWARD CREATING A MULTIRACIAL GOVERNMENT IN THEIR HASTE TO GET BACK INTO A STOCK MARKET THAT UNTIL A FEW DAYS AGO WAS OFF LIMITS MANY INSTITUTIONAL INVESTORS HAVE BEEN GRABBING SHARES IN THE OLD FAMILIAR SOUTH AFRICAN NAMES MINING AND GOLD STOCKS SUCH AS DE BEERS CONSOLIDATED MINES AND ANGLO AMERICAN BUT ANALYSTS WHO CLOSELY FOLLOW SOUTH AFRICA SAY THAT US INVESTORS MAY BE MISSING SOME OF THE BEST BARGAINS AVAILABLE IN THAT MARKET HISTORICALLY AMERICAN INVESTORS HAVE TENDED TO GRAVITATE TOWARD THE GOLD STOCKS IT'S WHAT THEY KNOW SAYS JOHN MARSH PRESIDENT OF SAICOR SECURITIES INC A SMALL NEW YORK INVESTMENT FIRM THERE ARE A WHOLE LOT OF STORIES DOWN THERE THAT PEOPLE ARE JUST LEARNING SEVERAL SECURITIES FIRMS SUGGEST THAT US INVESTORS BUY SOUTH AFRICAN INDUSTRIALS NOTABLY COMPANIES WITH INTERESTS IN FOOD PRINTING AND PUBLISHING TELECOMMUNICATIONS AND TOBACCO THE BULLISH CAMP ARGUES THAT THE LIFTING OF ECONOMIC SANCTIONS AGAINST SOUTH AFRICA WILL STIMULATE THE ECONOMY ENABLE SOUTH AFRICA'S WORKINGCLASS BLACK POPULATION TO LOAD UP ON CONSUMER PRODUCTS AND PROMPT SOUTH AFRICA'S HUGE CONGLOMERATES TO EXPORT GOODS AND SERVICES TO OTHER PARTS OF THE WORLD OF COURSE SOUTH AFRICA'S VOLATILE CURRENCY AND TUMULTUOUS POLITICAL ENVIRONMENT COULD EASILY TAKE FOREIGN INVESTORS ON A ROLLERCOASTER RIDE BUT ANALYSTS SAY THE LONGTERM FUTURE FOR SOUTH AFRICAN STOCKS LOOKS BRIGHT HIGH ON EVERYONE'S BUY LIST IS SOUTH AFRICAN BREWERIES A CONGLOMERATE THAT SELLS 98 OF THE BEER IN SOUTH AFRICA AND ALSO OPERATES WINERIES HOTELS FURNITURE MAKERS AND DEPARTMENT STORES THE COMPANY'S STOCK IS UP NEARLY 7 FOR THE PAST WEEK TO 64 RAND 1871 FROM 58 RAND AND SAICOR'S MR MARSH SAYS IT HAS ROOM TO KEEP RISING IT'S THE BLUEST OF THE BLUECHIP STOCKS DOWN THERE AND EVERYBODY WHO WANTS TO GET INTO SOUTH AFRICA WILL WANT TO OWN IT HE SAYS MR MARSH ALSO LIKES BARLOW RAND AN INDUSTRIAL HOLDING COMPANY AND REMBRANDT A FOOD AND TOBACCO GIANT THAT OWNS THE LUXURY JEWELRY MARKETER CARTIER IN NEW YORK AND LONDON SG WARBURG SECURITIES RELEASED A 75PAGE REPORT ON SOUTH AFRICA INCLUDING 18 STOCKS THAT IT RECOMMENDS INVESTORS CONSIDER BUYING OR ADDING TO THEIR PORTFOLIOS IN ADDITION TO MANY OF THE SAME COMPANIES THAT APPEARED ON SAICOR'S LIST WARBURG PUT A BUY RECOMMENDATION ON PREMIER GROUP WHICH MARKETS FOOD AND HEALTHCARE PRODUCTS STANDARD BANK INVESTMENT CORP SOUTH AFRICA'S PREMIER BANKING CONCERN AND GENCOR A DIVERSIFIED INDUSTRIAL COMPANY WITH INTERESTS IN A PAPER AND PULP PRODUCER AND AN OIL AND CHEMICALS CONCERN AMONG OTHER THINGS WARBURG'S REPORT NOTES THAT WHILE SOUTH AFRICA'S INDUSTRIAL SECTOR HAS SUFFERED FROM THE IMPACT OF THE NATION'S RECESSION WEAK CONSUMER SPENDING AND THE LOSS OF MAJOR EXPORT MARKETS INDUSTRIAL COMPANIES THAT MAKE PRODUCTS FOR CONSUMER MARKETS CAN ANTICIPATE STRONG EARNINGS GROWTH ON THE ASSUMPTION OF A STABLE ECONOMIC RECOVERY OF COURSE SOUTH AFRICAN STOCKS AREN'T ALWAYS THAT EASY TO BUY SOME OF THE STOCKS BEING RECOMMENDED BY BOTH WARBURG AND SAICOR ARE AVAILABLE TO US INVESTORS IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS TRADED ON THE NASDAQ STOCK MARKET ADRS ARE A WAY FOR INVESTORS TO TRADE FOREIGN STOCKS IN THE US MANY OTHER SOUTH AFRICAN STOCKS HOWEVER ONLY TRADE IN LONDON OR JOHANNESBURG MOREOVER MANY LARGE US SECURITIES FIRMS AREN'T YET TRADING SOUTH AFRICAN STOCKS THAT'S BECAUSE OF NUMEROUS MUNICIPAL AND STATEIMPOSED ANTIAPARTHEID RESTRICTIONS THAT COULD TAKE MONTHS OR EVEN YEARS TO UNWIND AS A RESULT THE ONLY SECURITIES FIRMS MAKING A MARKET IN SOUTH AFRICAN SHARES ARE SMALL US FIRMS THAT DON'T HAVE TO TAKE AN ANTIAPARTHEID STANCE TO PROTECT A MUNICIPALBOND BUSINESS AND FOREIGN FIRMS SUCH AS WARBURG IF IT ALL SEEMS LIKE TOO MUCH HASSLE CONSIDER THIS SOUTH AFRICA HAS AN ADDED INCENTIVE FOR FOREIGN INVESTORS WHO ARE CONSIDERING BUYING SECURITIES IN THEIR COUNTRY A TWOTIER CURRENCY EXCHANGE RATE SYSTEM THE FINANCIAL RAND USED BY OVERSEAS INVESTORS TRADES AT A SIGNIFICANT DISCOUNT TO THE COMMERCIAL RAND USED DOMESTICALLY CURRENTLY THE DISCOUNT IS ABOUT 20 DOWN SHARPLY FROM ABOUT 30 A FEW WEEKS AGO ALTHOUGH THE TWOTIER SYSTEM WAS ORIGINALLY PUT IN PLACE TO DISCOURAGE LARGE OUTFLOWS OF CAPITAL FROM SOUTH AFRICA IT HAS BECOME A VEHICLE USED BY FOREIGN INVESTORS TO BUY SOUTH AFRICAN SECURITIES AT A DISCOUNT FOR EXAMPLE SOUTH AFRICAN BONDS THAT YIELD 13 LOCALLY HAVE BEEN PROVIDING FOREIGN INVESTORS WITH LOCALCURRENCY YIELDS OF ABOUT 16 TO 18 WHICH EXPLAINS WHY THE BONDS HAVE FOUND A STRONG FOLLOWING IN THE US THE SECURITIES FIRMS RECOMMENDING SOUTH AFRICAN STOCKS ARE TRYING TO POSITION THE COUNTRY AS AN EMERGING MARKET EVEN THOUGH IT HAS A MODERN INFRASTRUCTURE A SOPHISTICATED STOCK MARKET A DEVELOPED BANKING SYSTEM AND DOZENS OF HUGE CONGLOMERATES WITH SUCH ATTRIBUTES THEY SAY SOUTH AFRICA IS AN ATTRACTIVE ALTERNATIVE TO OTHER EMERGING MARKETS IN LESSDEVELOPED COUNTRIES WHERE THE INVESTMENT CHOICES ARE MORE LIMITED BIG US INVESTMENT FIRMS ARE LOOKING HUNGRILY AT SOUTH AFRICA MERRILL LYNCH RECENTLY SAID IT IS HOPEFUL THAT EACH OF THE AFFECTED JURISDICTIONS IN THE US WILL NOW MOVE EXPEDITIOUSLY TO LIFT SANCTIONS SO THAT WE CAN BEGIN THE PROCESS OF HELPING SOUTH AFRICA AND ITS NEIGHBORING STATES RESUME THEIR FULL PARTICIPATION IN THE WORLD'S CAPITAL MARKETS THE SOUTH AFRICAN STOCK MARKET HAS 680 COMPANIES LISTED ON THE JOHANNESBURG STOCK EXCHANGE WITH A TOTAL STOCKMARKET VALUE OF AROUND 190 BILLION ABOUT 45 OF IT MINING STOCKS OF THESE 30 COMPANIES HAVE MARKET VALUES EXCEEDING 1 BILLION THE JOHANNESBURG STOCK EXCHANGE OVERALL MARKET NOW TRADES AT A PRICEEARNINGS MULTIPLE OF 109 TIMES WHICH IS NOT EXCESSIVE BY THE STANDARDS OF OTHER MARKETS OF COMPARABLE SIZE SG WARBURG SAYS OF COURSE THE RAND'S STEEP ZIGZAGS ARE A CONSIDERATION FOREIGNCURRENCY SWINGS CAN SHARPLY ALTER THE RETURNS OF A US INVESTOR VENTURING ABROAD AND THE STOCKMARKET PATH UNDOUBTEDLY WON'T BE SERENE IN A COUNTRY WHERE RACIAL TENSIONS PERSIST A CONTINUED SMOOTH TRANSITION AWAY FROM APARTHEID IS DEEPLY TIED TO THE FINANCIAL GROWTH OF SOUTH AFRICA SAYS LEXINGTON MANAGEMENT CORP AN INVESTMENT ADVISER AND MUTUALFUND CONCERN WHOSE LEXINGTON WORLDWIDE EMERGING MARKETS FUND HOLDS SOME SOUTH AFRICAN INDUSTRIAL SHARES SOUTH AFRICA HAS BEEN STARVED FOR CAPITAL AND THE WORLD BANK MAY NOT CHANGE ITS ATTITUDE UNTIL A BLACK GOVERNMENT IS ELECTED DEMOCRATICALLY IN APRIL OF 1994 AMONG MIDSIZE SOUTH AFRICAN COMPANIES LEXINGTON MANAGEMENT'S CHIEF EXECUTIVE WILLIAM S STACK LIKES PICKANDPAY A SUPERMARKET COMPANY WITH OPERATIONS SCATTERED THROUGHOUT SOUTH AFRICA'S BLACK TOWNSHIPS ONE MAJOR GROWTH STORY IS THE IMPROVEMENT IN UNDERLYING CONDITIONS IN BLACK AREAS HE SAYS THE COMPANIES THAT CAN SERVE THAT MARKET WILL DO VERY WELL SMITH NEW COURT LTD A BRITISH FIRM WITH OFFICES IN NEW YORK HAS ADVISED CLIENTS TO CONSIDER BUYING SHARES IN JOHANNESBURG CONSOLIDATED INC A CONGLOMERATE THAT SMITH NEW COURT SAYS CONTROLS THE ENGLISHSPEAKING PRESS IN SOUTH AFRICA SMITH NEW COURT WHICH HAS BEEN TRADING SOUTH AFRICAN GOLD SHARES FOR 75 YEARS THROUGH ITS LONDON HEADQUARTERS NOW IS ARRANGING GETACQUAINTED MEETINGS BETWEEN SOUTH AFRICAN EXECUTIVES AND US MONEY MANAGERS THIS MONTH SMITH NEW COURT MANAGERS ESCORTED TOP EXECUTIVES FROM JOHANNESBURG CONSOLIDATED INC TO NEW YORK AND BOSTON TO MEET WITH INSTITUTIONAL INVESTORS IT WAS THE FIRST SUCH TRIP FOR THE SOUTH AFRICAN EXECUTIVES 9309300156 930930 WHO'S NEWS ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER NY LEONARD S SIMON WAS NAMED PRESIDENT OF THIS SAVINGS BANK MR SIMON 56 YEARS OLD CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS LOWELL C PATRIC WHO RESIGNED SEPT 1 CITING A STRONG DIFFERENCE OF OPINION WITH MANAGEMENT 9309300155 930930 MOBIL SIGNS MALAYSIAN PACTS FAIRFAX VA MOBIL CORP SAID IT SIGNED EXPLORATION AGREEMENTS WITH THE STATEOWNED OIL COMPANY OF MALAYSIA RELATING TO 33 MILLION ACRES OFFSHORE MALAYSIA THE AGREEMENTS COVER BLOCKS A AND B 175 MILES OFFSHORE FROM THE ISLAND OF BORNEO AND INCLUDE PRODUCTIONSHARING CONTRACTS WITH PETRONAS THE NATIONAL OIL COMPANY MOBIL SAID IT WOULD BEGIN SEISMIC WORK IN APRIL 1994 AND IS COMMITTED TO DRILLING ONE WELL IT DIDN'T DISCLOSE ESTIMATES OF THESE EXPLORATION EXPENSES 9309300154 930930 WHO'S NEWS REED ELSEVIER PLC CHIEF EXECUTIVE DAVIS TO BE COCHAIRMAN LONDON REED ELSEVIER PLC SAID PETER DAVIS ITS CHIEF EXECUTIVE WILL BECOME COCHAIRMAN WITH PIERRE VINKEN EFFECTIVE TOMORROW THE CHANGE AT THE ANGLODUTCH PUBLISHING GROUP IS IN KEEPING WITH AN AGREEMENT ANNOUNCED WHEN REED INTERNATIONAL PLC AND ELSEVIER NV MERGED JAN 1 THAT MR DAVIS WILL BECOME SOLE CHAIRMAN OF THE COMBINED COMPANIES WHEN MR VINKEN RETIRES IN 1995 REED ELSEVIER ALSO SAID THE CHIEF EXECUTIVE'S FUNCTION WILL BE TAKEN OVER BY AN EXECUTIVE COMMITTEE COMPOSED OF MESSRS VINKEN AND DAVIS LOEK VAN VOLLEHOVEN IAN IRVINE AND CHIEF FINANCIAL OFFICER NIGEL STAPLETON ADDITIONALLY REED ELSEVIER SAID THAT WHEN MESSRS VINKEN AND VAN VOLLENHOVEN RETIRE IN THE SPRING OF 1995 THEY WILL BE APPOINTED NONEXECUTIVE DIRECTORS THEY WILL BE SUCCEEDED AS MEMBERS OF THE EXECUTIVE COMMITTEE BY HERMAN BRUGGINK AND PAUL VLEK MR BRUGGINK WHO SINCE THE MERGER HAS BEEN RESPONSIBLE FOR LEGAL PUBLISHING FOR THE COMBINED COMPANIES AND BEFORE THAT WAS IN CHARGE OF ELSEVIER'S BUSINESS IN THE US WILL BECOME CHAIRMAN OF ELSEVIER NV MR VLEK WILL CONTINUE TO RUN MUCH OF THE DUTCH PUBLISHING INTERESTS OF THE COMBINED COMPANIES 9309300153 930930 BUSINESS BRIEF CUMMINS ENGINE CO KAMAZ INC JOINT VENTURE TO MAKE ENGINES IN RUSSIA CUMMINS ENGINE CO SAID IT AGREED TO FORM A PARTNERSHIP WITH KAMAZ INC A TRUCK MAKER BASED IN THE TATAR REPUBLIC OF CENTRAL RUSSIA TO MANUFACTURE ENGINES IN RUSSIA THE COLUMBUS IND MAKER OF DIESEL ENGINES SAID UNDER THE PLANNED VENTURE THE TWO COMPANIES WILL PRODUCE 50000 ENGINES ANNUALLY TO REPLACE PART OF THE CAPACITY LOST IN AN EXTENSIVE FIRE AT KAMAZ LAST APRIL CUMMINS HAS BEEN FORMALLY WORKING WITH KAMAZ SINCE THE FORMATION IN 1991 OF KAMDIZEL A 5050 ENGINE MARKETING AND SERVICE JOINT VENTURE 9309300152 930930 INTERNATIONAL MAZDA MOTOR SEES WIDER LOSS FOR FISCAL YEAR BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO STUNG BY THE STRONG YEN AND SLUGGISH SALES MAZDA MOTOR CORP SAID IT EXPECTS A MUCH WIDER LOSS THAN PREVIOUSLY FORECAST FOR THE CURRENT FISCAL YEAR THE CAR MAKER SAID IT NOW EXPECTS A NONCONSOLIDATED PRETAX LOSS OF 32 BILLION YEN 3046 MILLION IN THE YEAR ENDING MARCH 31 COMPARED WITH A 12 BILLION YEN LOSS FORECAST PREVIOUSLY ANY LOSS WOULD MARK A SHARP SWING FROM MAZDA'S 624BILLIONYEN PROFIT A YEAR EARLIER MAZDA ESTIMATED SALES WILL FALL 12 TO 192 TRILLION YEN FOR THE YEAR COMPARED WITH INITIAL ESTIMATES OF A 55 DROP TO 207 TRILLION YEN MAZDA ALSO SAID IT EXPECTS TO SKIP ITS DIVIDEND FOR THE CURRENT FISCAL YEAR IT PREVIOUSLY SAID IT EXPECTED TO PAY A DIVIDEND OF THREE YEN A SHARE MAZDA ALSO ANNOUNCED EFFORTS TO CUT EXPENSES BY HALTING A PRODUCTION LINE NEXT APRIL AT ITS HIROSHIMA PLANT SHORTENING WORKING HOURS IN ANOTHER PLANT AND REDUCING ITS TOTAL WORK FORCE BY 3000 WITHIN THREE YEARS DOUBLE THE CUTS THE COMPANY INITIALLY PLANNED TO MAKE ANALYSTS HAILED MAZDA'S EFFORT TO CONTAIN COSTS MAZDA IS BEGINNING TO MOVE IN THE RIGHT DIRECTION SAID STEPHEN USHER AN ANALYST FOR KLEINWORT BENSON INTERNATIONAL INC THE 3000PERSON STAFF CUT IS A SIGNIFICANT STEP ACCOUNTING FOR 10 OF THE COMPANY'S WORK FORCE HE SAID ON TOKYO'S STOCK EXCHANGE MAZDA SHARES ROSE TWO YEN TO 514 YEN STILL THE EFFORTS WON'T BE ENOUGH TO PUT THE CAR MAKER BACK ON TRACK MR USHER SAID MAZDA'S REVISED SALES TARGET FOR THE FISCAL YEAR IS STILL TOO AMBITIOUS HE SAID BECAUSE IT INDICATES THE COMPANY IS COUNTING ON AN UNLIKELY RECOVERY IN THE AUTO MARKET IN THE LATTER HALF OF THE YEAR WITH CAR SALES LIKELY TO REMAIN SLUGGISH MAZDA MAY HAVE TO REVISE ITS FORECASTS DOWNWARD ONCE AGAIN BEFORE THE END OF THE FISCAL YEAR HE SAID THIS WILL NOT BE THE END HE ADDED 9309300151 930930 WHO'S NEWS SEAT CHAIRMAN QUITS AFTER VW REJECTS RESTRUCTURING PLAN WOLFSBURG GERMANY THE CHAIRMAN OF VOLKSWAGEN AG'S FLOUNDERING SPANISH UNIT STEPPED DOWN JUST ONE DAY AFTER VW REJECTED THE SUBSIDIARY'S RESTRUCTURING PROPOSAL AS INSUFFICIENT JUAN ANTONIO DIAZ ALVAREZ'S DEPARTURE WHICH WAS BILLED BY VW AS A MUTUAL AGREEMENT MARKS ANOTHER STEP IN VW'S SCRAMBLE TO JOLT THE UNIT BACK TOWARD PROFITABILITY SEVERAL WEEKS AGO MR DIAZ BROKE THE NEWS TO VW THAT THE UNIT SEAT SA WAS PROJECTING A LOSS OF 125 BILLION MARKS 7743 MILLION FOR 1993 FORCING VW TO ARRANGE A 15 BILLION MARK CASH INJECTION TO KEEP THE UNIT AFLOAT SEAT'S MANAGEMENT BOARD IS NOW UNDER INTENSE PRESSURE TO COME UP WITH A TOUGHER ALTERNATIVE PLAN TO RESTRUCTURE THE UNIT VW CHAIRMAN FERDINAND PIECH HAS MADE IT CLEAR THAT SEAT CAN'T EXPECT ANY FURTHER HELP BEYOND THE 15 BILLION MARK INFUSION FROM THE PARENT WHICH ITSELF IS STRUGGLING TO RECOVER FROM ITS LOSS OF 16 BILLION MARKS IN THE FIRST HALF OF THE YEAR BUT FINDING A TENABLE SOLUTION AT SEAT COULD PROVE EXTREMELY DIFFICULT AS VW'S INTEREST IN DRASTIC COSTSAVINGS CLASHES WITH THE DEMANDS OF SPANISH UNIONS WHO ALREADY COMPLAINED THAT MR DIAZ'S PLAN CALLED FOR TOOSHARP REDUCTIONS IN LABOR PETER WALZER SEAT DEPUTY MANAGING DIRECTOR WILL ACT AS INTERIM CHAIRMAN OF THE UNIT VW OFFICIALS WAVED OFF SPECULATION THAT VW'S PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA MIGHT BE HURRIED OFF TO HIS NATIVE SPAIN TO SORT OUT PROBLEMS THERE MR LOPEZ IS MORE THAN FULLY OCCUPIED WITH HIS RESPONSIBILITIES AS WORLDWIDE PURCHASING AND PRODUCTION CHIEF SAID A VW SPOKESMAN BUT INDUSTRY ANALYSTS SUGGESTED THAT MR LOPEZ WHO STILL ENJOYS HIGH POPULARITY IN SPAIN DESPITE HIS BITTER FEUD WITH GENERAL MOTORS CORP MIGHT BE ABLE TO PLAY A SPECIAL ROLE IN HELPING VW DEAL WITH LOCAL LABOR PROBLEMS 9309300150 930930 BUSINESS BRIEF AAMES FINANCIAL CORP FISCAL FIRSTQUARTER PROFIT TO MISS ANALYST ESTIMATES AAMES FINANCIAL CORP SAID IT EXPECTS TO POST PERSHARE NET INCOME OF ABOUT 16 CENTS TO 18 CENTS FOR THE FISCAL FIRST QUARTER ENDED SEPT 30 LOWER THAN ANALYSTS' ESTIMATES OF ABOUT 23 CENTS A SHARE THE PERSHARE RESULT BASED ON 29 MORE SHARES OUTSTANDING COMPARES WITH A RESTATED 28 CENTS A SHARE IN THE YEAREARLIER PERIOD ON NET OF 12 MILLION REVENUE IN THE YEARAGO FIRST QUARTER WAS 74 MILLION THE LOS ANGELES MORTGAGE BROKERAGE FIRM CITED A DECLINE IN AVERAGE LOAN SIZE PRIMARILY BECAUSE OF THE CONTINUING RECESSION IN CALIFORNIA AS WELL AS INCREASED ADVERTISING EXPENSES ASSOCIATED WITH THE SEPTEMBER OPENING OF THE COMPANY'S FIRST BRANCH OFFICE IN LAS VEGAS 9309300149 930930 BUSINESS BRIEF INTEGRATED DEVICE TECHNOLOGY INC SECONDQUARTER NET TO TOP PROJECTIONS YEARAGO PROFIT INTEGRATED DEVICE TECHNOLOGY INC SAID IT EXPECTS TO REPORT EARNINGS OF MORE THAN 22 CENTS A SHARE FOR ITS SECOND QUARTER ENDED SUNDAY EXCEEDING ANALYSTS' MEAN PROJECTIONS THE MAKER OF INTEGRATED CIRCUITS SAID IN SANTA CLARA CALIF THAT THE GAINS ARE SALES OF ITS STATIC ACCESS RANDOM MEMORY CACHE COMPONENTS AND MODULES AND ITS SPECIALTY MEMORY PRODUCTS IN THE YEARAGO SECOND QUARTER INTEGRATED DEVICE EARNED 13 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 111 MILLION 9309300148 930930 BUSINESS BRIEF ROY F WESTON INC THIRDQUARTER NET EXPECTED TO TRAIL ANALYST ESTIMATES ROY F WESTON INC'S THIRDQUARTER PROFIT IS EXPECTED TO FALL BELOW WALL STREET ANALYSTS' LOWEST ESTIMATE OF 18 CENTS A SHARE FOR THE QUARTER WILLIAM J MARRAZZO PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THE EXECUTIVE OF THE ENVIRONMENTAL MANAGEMENT COMPANY CITED THE CURRENT WEAK ECONOMY AND AN UNCERTAIN ENVIRONMENTAL REGULATORY ATMOSPHERE HE SAID ANALYSTS' ESTIMATES FOR THE QUARTER RANGED BETWEEN 18 AND 21 CENTS A SHARE WE CERTAINLY WILL HAVE A POSITIVE BOTTOM LINE BUT THE MARGINS AREN'T AS GOOD AS ANALYSTS HAVE BEEN ESTIMATING MR MARRAZZO SAID IN THE YEAREARLIER THIRD QUARTER WESTON BASED IN WEST CHESTER PA EARNED 21 MILLION OR 23 CENTS A SHARE ON REVENUE OF 818 MILLION MR MARRAZZO EXPECTS REVENUE IN THE 1993 THIRD QUARTER TO BE FLAT OR SLIGHTLY LOWER THAN A YEAR EARLIER 9309300147 930930 BUSINESS BRIEF CANADA POST CORP PLAN TO ACQUIRE 75 STAKE IN PUROLATOR MOVES AHEAD CANADA'S NATIONAL TRANSPORTATION AGENCY APPROVED CANADA POST CORP'S PLANNED PURCHASE OF 75 OF PUROLATOR COURIER LTD A CANADIAN COURIER COMPANY PUROLATOR WHICH HAS ABOUT 43 OF THE CANADIAN COURIER MARKET IS CURRENTLY OWNED BY ONEX CORP A TORONTOBASED HOLDING COMPANY CANADA POST HAS AGREED TO PAY 55 MILLION CANADIAN DOLLARS US416 MILLION FOR THE PUROLATOR SHARES OTHER MAJOR CANADIAN COURIER COMPANIES HAVE OPPOSED THE TRANSACTION BECAUSE OF CONCERN OVER THE MARKET STRENGTH OF CANADA POST WHICH OPERATES CANADA'S MAIL SYSTEM THE FEDERAL GOVERNMENT'S ANTITRUST DEPARTMENT ALSO IS REVIEWING THE PLANNED TRANSACTION 9309300146 930930 SMITH CORONA FAX INTRODUCTIONS THE MAKER OF ELECTRONIC TYPEWRITERS WORD PROCESSORS AND OTHER OFFICE PRODUCTS SAID IT IS BRANCHING OUT INTO NINE FAX MACHINE CATEGORIES AND PLANS TO INTRODUCE THE PRODUCTS BY THE FALL OF 1994 WE EXPECT TO BE A MAJOR FULLLINE PLAYER IN THE FAX MARKET THE COMPANY SAID NOTING THAT ITS PRODUCTS WOULD INCLUDE PLAIN PAPER AND WIRELESS FAX MACHINES THE FAX MARKET IS EXPECTED TO GROW FROM 25 MILLION UNITS IN 1993 TO MORE THAN FOUR MILLION UNITS BY 1996 ACCORDING TO SMITH CORONA 9309300145 930930 WEINGARTEN REDEMPTION CALL HOUSTON WEINGARTEN REALTY INVESTORS SAID THAT IN RESPONSE TO ITS REDEMPTION CALL OF ITS 25 MILLION IN 98 CONVERTIBLE NOTES DUE APRIL 1 1999 TWO UNITS OF AMERICAN GENERAL CORP ELECTED TO CONVERT THE NOTES TO COMMON SHARES IN ACCORDANCE WITH THE NOTE AGREEMENT THE REALESTATE INVESTMENT TRUST SAID THAT AS A RESULT OF THE CONVERSION ALL FUTURE INTEREST PAYMENT OBLIGATIONS ON THE NOTES CEASED SEPT 28 IT SAID THE NOTES WERE CONVERTED INTO COMMON SHARES AT A PRICE OF 3450 A SHARE THE CONVERSION RESULTED IN THE ISSUANCE OF 724637 COMMON SHARES TO THE NOTEHOLDERS BRINGING ITS TOTAL SHARES OUTSTANDING TO ABOUT 26 MILLION WEINGARTEN WAS QUOTED YESTERDAY AT 43 UP 25 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING 9309300144 930930 KEYCORP OFFERING MUTUAL FUNDS ALBANY NY KEYCORP SAID IT INTRODUCED ITS FIRST FAMILY OF MUTUAL FUNDS EACH OF WHICH REQUIRE A MINIMUM INITIAL INVESTMENT OF 500 ONE OF THE LOWEST MINIMUM REQUIREMENTS AMONG MUTUAL FUNDS THE VICTORY FUNDS ARE GROUPED IN THREE TYPES OF FUNDS MONEY MARKET FIXEDINCOME AND EQUITY KEYCORP SAID KEYCORP A 32 BILLION BANK HOLDING COMPANY WHOSE OPERATIONS CENTER ON SMALLER COMMUNITIES IN THE NORTHEAST AND NORTHWEST SAID THE INTRODUCTION OF THE FUNDS GREW OUT OF A NEW PLAN TO CONSOLIDATE THE COMPANY'S INVESTMENT ACTIVITIES UNDER A SINGLE CHIEF INVESTMENT OFFICER 9309300143 930930 COMPUSA SALES SURGE DALLAS COMPUSA INC SAID NET SALES ROSE 66 IN ITS FISCAL FIRST QUARTER ENDED SATURDAY TO 437 MILLION FROM 263 MILLION A YEAR EARLIER SALES AT THE 30 STORES OPEN A YEAR OR MORE ROSE 17 THE COMPUTER RETAILER SAID THE COMPANY OPERATES 57 STORES 9309300142 930930 PRUDENTIAL UNIT TO SETTLE SEC CHARGES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC HAS AGREED TO SETTLE FEDERAL CIVIL CHARGES OF IMPROPERLY SELLING LIMITED PARTNERSHIPS IN THE 1980S AND TO PAY PENALTIES AND RESTITUTION OF 345 MILLION PEOPLE FAMILIAR WITH THE CASE SAID THE NATION'S FOURTHLARGEST BROKERAGE FIRM REACHED THE PRELIMINARY ACCORD WITH THE SECURITIES AND EXCHANGE COMMISSION NOW STATE SECURITIES REGULATORS ARE IN TALKS WITH THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT FOR ADDED PENALTIES OF AS MUCH AS 25 MILLION THE PEOPLE SAID BRINGING PRUDENTIAL'S COMBINED SETTLEMENT WITH FEDERAL AND STATE REGULATORS TO AS MUCH AS 370 MILLION THE PENALTY WOULD BE THE SECONDLARGEST EVER LEVIED BY THE SEC AGAINST A WALL STREET SECURITIES FIRM AND THE MOST EVER AGAINST A BROKERAGE FIRM CATERING TO INDIVIDUAL INVESTORS THE ACCORD WOULD CLOSE A CHAPTER IN PRUDENTIAL'S FAILED PARTNERSHIP FORAY WHICH WOULD END UP COSTING THE FIRM NEARLY 1 BILLION IN FINES LEGAL CLAIMS PRIVATE SETTLEMENTS WITH INVESTORS ARBITRATION AWARDS AND LEGAL FEES WILLIAM MCLUCAS THE SEC'S ENFORCEMENT CHIEF SAID HE HAD NO COMMENT ON ANY NEGOTIATIONS OR SETTLEMENT DISCUSSIONS WAYNE KLEIN IDAHO'S SECURITIES COMMISSIONER WHO IS SPEARHEADING A STATE SECURITIES TASK FORCE INVESTIGATING THE MATTER ALSO DECLINED TO COMMENT A PRUDENTIAL SECURITIES SPOKESMAN SAID ONLY WE BELIEVE WE'RE CLOSE TO REACHING AN AGREEMENT WITH THE SEC THE NASD AND THE STATES THE NASD IS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS A SELFREGULATORY GROUP IN THE 1980S PRUDENTIAL SECURITIES THEN KNOWN AS PRUDENTIALBACHE WAS ONE OF WALL STREET'S BIGGEST VENDORS OF LIMITED PARTNERSHIPS SELLING ABOUT 6 BILLION OF PARTNERSHIP UNITS TO 360000 INVESTORS IN 650 REAL ESTATE ENERGY AND OTHER PARTNERSHIPS BUT THE VALUE OF MANY OF ITS PARTNERSHIPS HAVE PLUNGED TRIGGERING SCORES OF LAWSUITS AND ARBITRATION CASES BY INVESTORS WHO CLAIM THAT PRUDENTIAL MISLED THEM ON THE PARTNERSHIPS' RISKS AND RETURNS INTERNAL PRUBACHE DOCUMENTS UNCOVERED IN THE INVESTIGATION HAVE SHOWN THAT THE FIRM SYSTEMATICALLY URGED ITS BROKERS TO SELL THE HIGHRISK PARTNERSHIPS TO INVESTORS SEEKING SAFETY OTHER DOCUMENTS INDICATE THAT PRUBACHE INFLATED PAYOUTS ON SOME OF ITS MONEYLOSING PARTNERSHIPS BY DISTRIBUTING BORROWED FUNDS TO INVESTORS PRUDENTIAL SECURITIES NOW HAS A NEW MANAGEMENT TEAM THAT WAS UNINVOLVED IN THE PARTNERSHIP SALES EFFORT AND THE FIRM WITH A SALES FORCE OF ABOUT 6000 BROKERS IS HAVING A RECORD YEAR AMID THE INVESTING BOOM ON WALL STREET UNDER THE SETTLEMENT PRUDENTIAL SECURITIES WOULD NEITHER ADMIT NOR DENY ALLEGATIONS THAT IT IMPROPERLY SOLD THE PARTNERSHIPS ABOUT 20 MILLION OF THE 345 MILLION WOULD REPRESENT FINES BY THE SEC AND THE NASD THE REST WOULD GO INTO A RESTITUTION FUND FOR INVESTORS WITH PARTNERSHIP CLAIMS AS PART OF THE REPARATIONS PROCESS INVESTORS WOULD HAVE TO SUBMIT CLAIMS ABOUT THEIR PARTNERSHIP PURCHASES INCLUDING HOW MUCH MONEY THEY LOST AND HOW THE FUNDS WERE SOLD TO THEM IF BIG GULFS DEVELOPED IN SETTLING THOSE MATTERS AN INDEPENDENT THIRD PARTY WOULD STEP IN TO MEDIATE THE PROCESS PEOPLE CLOSE THE MATTER SAID IT COULDN'T BE DETERMINED WHO THAT THIRD PARTY WOULD BE IT'S UNCLEAR HOW THE FEDERAL AND STATE SETTLEMENT WILL AFFECT INVESTORS WITH PENDING ARBITRATION CASES AGAINST PRUDENTIAL SECURITIES BUT A SETTLEMENT BETWEEN THE FIRM AND 130000 INVESTORS IN A BIG CLASSACTION CASE INVOLVING ENERGY PARTNERSHIPS WILL BE CONTAINED IN THE COMBINED FEDERAL AND STATE AGREEMENT THE PEOPLE SAID PRUDENTIAL HAS AGREED TO PAY 120 MILLION TO SETTLE THAT CLASSACTION CASE A HEARING ON THE MATTER IS SET IN A NEW ORLEANS FEDERAL COURT ON OCT 14 9309300139 930930 WHO'S NEWS DEAN FOODS CO DEAN FOODS CO FRANKLIN PARK ILL THOMAS L ROSE 56 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FOOD PROCESSING AND DISTRIBUTING COMPANY MR ROSE WHO ASSUMES THE NEW JOB DEC 1 WAS SENIOR VICE PRESIDENT BEFORE HIS PROMOTION HE STARTED AT THE COMPANY IN 1955 AS A PLANT EMPLOYEE IN ROCHESTER IND AND BECAME A VICE PRESIDENT IN 1985 MR ROSE SUCCEEDS WILLIAM D FISCHER 64 WHO WILL BE RETIRING 9309300138 930930 WHO'S NEWS PRIMERICA CORP PRIMERICA CORP NEW YORK JAMES C ZELTER WAS NAMED HEAD OF TRADING AND SALES AT SMITH BARNEY SHEARSON INC'S HIGH YIELD SECURITIES BUSINESS AND A SENIOR MANAGING DIRECTOR MR ZELTER 31 YEARS OLD WAS GOLDMAN SACHS & CO'S SENIOR HIGH YIELD SECURITIES TRADER MR ZELTER WILL REPORT TO STEVEN M BOWMAN SENIOR MANAGING DIRECTOR AND HEAD OF CORPORATE DEBT TRADING AND SALES JAMES DIMON PRESIDENT AT PRIMERICA SAID MR ZELTER WILL DIRECT A STAFF OF ABOUT 40 PEOPLE 9309300137 930930 NATIONAL MEDICAL WILL SETTLE CLAIMS BY INSURERS BY PAYING UP TO 125 MILLION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC AGREED TO PAY AS MUCH AS 125 MILLION TO SIX INSURANCE COMPANIES TO SETTLE THEIR ALLEGATIONS THAT THE HOSPITAL COMPANY FILED 740 MILLION IN FRAUDULENT PSYCHIATRIC CLAIMS THE PACT WITH UNITS OF AETNA LIFE & CASUALTY CO OF HARTFORD CONN AND CIGNA CORP OF PHILADELPHIA AND WITH NEW YORK'S METROPOLITAN LIFE INSURANCE CO WOULD END TWO OF THE THREE INSURANCE COMPANY SUITS AGAINST NATIONAL MEDICAL IT ALSO OPENS THE DOOR TO NEW CONTRACTS WITH THE INSURERS NEEDED BY NATIONAL MEDICAL TO COMPETE IN THE EXPLODING BUSINESS OF MANAGED HEALTH CARE THE ANNOUNCEMENT RELEASED MOMENTS BEFORE THE START OF THE COMPANY'S ANNUAL MEETING AT AN ELEGANT SEASIDE HOTEL HERE PUSHED NATIONAL MEDICAL SHARES UP 25 OR 2 TO 10 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MORE THAN TWO MILLION SHARES CHANGED HANDS JEFFREY C BARBAKOW MAKING HIS FIRST APPEARANCE BEFORE NATIONAL MEDICAL SHAREHOLDERS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS PLAINLY GLAD TO HAVE SOME GOOD NEWS TO TELL THE STEPS WE ARE TAKING TO RESTORE CONFIDENCE IN NME ARE HAVING THE DESIRED EFFECT HE SAID ADDRESSING A CROWDED AUDITORIUM THE EXECUTIVE RECAPPED THE COMPANY'S RECENT EFFORTS TO BOLSTER ITS IMAGE AND ENSURE THAT ANY PAST MISCONDUCT WON'T BE REPEATED IN RECENT DAYS EVERY SINGLE ONE OF NME'S 50000 EMPLOYEES HAS RECEIVED A LETTER FROM PRESIDENT MIKE FOCHT AND MYSELF ALONG WITH A COPY OF OUR NEW CORPORATE CODE OF CONDUCT MR BARBAKOW SAID SHAREHOLDERS GRILLED MANAGEMENT FOR NEARLY AN HOUR LARGELY ABOUT RECENT MULTIMILLION DOLLAR SEVERANCE AND CONSULTING DEALS WITH THE COMPANY'S FORMER CHAIRMAN AND CHIEF EXECUTIVE RICHARD K EAMER AND FORMER PRESIDENT LEONARD COHEN ASPECTS OF MR BARBAKOW'S EMPLOYMENT ARRANGEMENT ALSO CAME UNDER FIRE AN ALPHABET SOUP OF SOPHISTICATED BONUS PROGRAMS FOR EXECUTIVES ADDS UP TO HUGE AMOUNTS OF MONEY ONE HOLDER SAID A DIRECTOR ARMED WITH EXTENSIVE NOTES SAID MOST OF THE FORMER EXECUTIVES' 1993 PACKAGES VALUED AT 9 MILLION FOR MR EAMER AND 29 MILLION FOR MR COHEN WERE PART OF EMPLOYMENT CONTRACTS THAT LEGALLY HAD TO BE HONORED THE CONSULTING CONTRACTS WILL ENSURE THE MEN ARE AVAILABLE TO ADVISE THE COMPANY ON LEGAL AND OTHER MATTERS THE DIRECTOR SAID RESPONDING TO A QUESTION ABOUT THE GOVERNMENT'S CRIMINAL INVESTIGATION OF THE COMPANY MR BARBAKOW SAID IT WAS TOO EARLY TO DISCUSS CONTACTS WITH THE JUSTICE DEPARTMENT WHICH IS COORDINATING THE INQUIRY THE TALKS ARE GIVING NATIONAL MEDICAL AT LEAST A SENSE OF THE GOVERNMENT'S CONCERNS HE SAID NATIONAL MEDICAL EMPHASIZED THAT IT HASN'T BEEN CHARGED WITH ANY WRONGDOING THE INSURANCE COMPANY AGREEMENT CAME THROUGH MEDIATION ORDERED BY A JUDGE IN TEXAS WHERE NATIONAL MEDICAL HAS OPERATIONS MR BARBAKOW WHO FLEW INTO DALLAS LAST WEEK TO JOIN IN THE TALKS SAID HE WAS PARTICULARLY ENCOURAGED BY THE INSURERS' INTEREST IN RESUMING A NORMAL BUSINESS RELATIONSHIP WITH NME THE 125 MILLION SETTLEMENT AMOUNT IS A MAXIMUM THAT COULD BE REDUCED SOMEWHAT FROM VARIOUS ADJUSTMENTS HE SAID AT A NEWS CONFERENCE AFTER THE MEETING THE PAYMENTS WILL BE MADE IN TWO INSTALLMENTS THE FIRST NEXT MONTH AND THE SECOND DURING THE FIRST WEEK OF DECEMBER A COMPANY ATTORNEY SAID WE'RE NOT IN DISCUSSIONS TO SETTLE THE THIRD INSURANCE COMPANY SUIT BUT WE WILL CLEARLY BE TALKING TO THEM SOON MR BARBAKOW SAID THE SUIT IN US DISTRICT COURT IN WASHINGTON INCLUDES 13 COMPANIES LED BY TRAVELERS CORP THE VALUE OF THE DISPUTED CLAIMS IN THAT CASE IS SIGNIFICANTLY LESS THAN IN THE TEXAS CASES THE NATIONAL MEDICAL ATTORNEY SAID ADDING THAT THE JUDGE HASN'T GIVEN ANY INDICATION THAT HE PLANS TO ORDER THE CASE INTO MEDIATION 9309300136 930930 WHO'S NEWS AMBER'S STORES INC AMBER'S STORES INC DALLAS TRACY J MANDART 56 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ARTS AND CRAFTS RETAILER MR MANDART FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE HJ WILSON CO OFFPRICE RETAILING CHAIN SUCCEEDS AS PRESIDENT RON CRAFT 48 WHO WILL CONTINUE TO SERVE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANME PUBLICLY HELD FIVE MONTHS AGO HADN'T PREVIOUSLY HAD A CHIEF OPERATING OFFICER 9309300135 930930 WHO'S NEWS NISSAN MOTOR CORP NISSAN MOTOR CORP CARSON CALIF JERRY D FLORENCE 44 YEARS OLD WAS NAMED VICE PRESIDENT MARKETING OF THIS AUTO MAKER'S US SALES ARM MR FLORENCE WILL OVERSEE THE US MARKETING OPERATIONS AND STAFFS FOR NISSAN AND INFINITI PRODUCTS HE WAS PREVIOUSLY GENERAL DIRECTOR OF MARKETING AND PRODUCT STRATEGY FOR GENERAL MOTORS CORP'S CADILLAC DIVISION MR FLORENCE SUCCEEDS YUKIO KITAHORA A STAFF VICE PRESIDENT WHO WAS VICE PRESIDENT MARKETING ON AN INTERIM BASIS 9309300134 930930 TRISTAR GETS APPROVAL FROM BANK TO SETTLE SHAREHOLDER LAWSUIT SAN ANTONIO TRISTAR CORP SAID IT SIGNED AND FILED IN FEDERAL COURT A FORMAL AGREEMENT TO SETTLE A SHAREHOLDER CLASSACTION SUIT FOR 95 MILLION IN CASH PAYMENTS AS REPORTED THE SETTLEMENT AGREEMENT REACHED IN JUNE HAD BEEN SUBJECT TO VARIOUS APPROVALS AND TO WAIVERS FROM THE COMPANY'S BANK LENDER WHICH THE COMPANY HAS NOW GAINED TRISTAR FORMERLY KNOWN AS ROSS COSMETICS DISTRIBUTION CENTERS INC WAS SUED AFTER FAILING TO DISCLOSE THAT ITS MAIN SUPPLIER HAD BECOME ITS MAJORITY SHAREHOLDER THE COSMETICS CONCERN SAID IT PAID 15 MILLION ON AUG 31 INTO AN ESCROW ACCOUNT WHICH WILL BE RELEASED UPON APPROVAL BY THE FEDERAL DISTRICT COURT IN SOUTH CAROLINA AND WILL PAY THE REST OF THE SETTLEMENT IN THREE INSTALLMENTS 26 MILLION ON MAY 1 1994 45 MILLION BETWEEN OCT 1 AND DEC 20 1994 AND 900000 WITHIN 10 DAYS AFTER COURT APPROVAL OF THE SETTLEMENT BECOMES FINAL OR JAN 1 1994 WHICHEVER IS LATER THE COMPANY SAID THE SETTLEMENT WILL RELEASE CLAIMS AGAINST IT CURRENT AND FORMER DIRECTORS AND MEMBERS OF THE TWO SHETH FAMILIES FROM DUBAI WHO CONTROL TRISTAR'S PRIMARY SUPPLIER S&J PERFUME CO LONDON TRISTAR SAID THE SHETH FAMILIES WILL LEND IT THE FUNDS TO PAY THE CLAIMS AND SAID THE FAMILIES AGREED TO SECURE THE COMPANY'S OBLIGATION TO PAY THE SETTLEMENT BY PUTTING INTO ESCROW AS COLLATERAL THREE MILLION SHARES OF TRISTAR STOCK THEY OWN TRISTAR SAID IN CONNECTION WITH THE AGREEMENT IT WILL ISSUE WARRANTS FOR TWO MILLION SHARES TO THE SHETH FAMILIES AFTER THEY FUND THE LOAN THE WARRANTS COULD BE EXERCISED FOR 534 A SHARE WITH THE PRICE INCREASING 10 A YEAR AFTER THE FIRST SEVEN YEARS THE COMPANY ALSO SAID IT EXTENDED TO AUG 31 2003 THE EXERCISE DATE OF A WARRANT HELD BY STARION INTERNATIONAL LTD A SHETH FAMILY AFFILIATE TO BUY 400000 TRISTAR COMMON SHARES 9309300132 930930 WHO'S NEWS MEDSTAT SYSTEMS INC MEDSTAT SYSTEMS INC ANN ARBOR MICH DR LOUIS H DIAMOND 63 YEARS OLD WAS APPOINTED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT AND MEDICAL DIRECTOR FOR THIS HEALTHCARE INFORMATION COMPANY 9309300129 930901 REVIEW & OUTLOOK EDITORIAL THE HUSH RUSH LAW REMEMBER WHEN POLITICAL SCIENTISTS AND FOUNDATIONS WERE BEMOANING VOTER APATHY ALL THAT'S CHANGED OF COURSE THE ELECTORATE IS MORE ENGAGED THAN IT'S BEEN IN YEARS THANKS IN NO SMALL PART TO THE AMAZING PHENOMENON OF TALK RADIO PERHAPS FOUR OUT OF 10 AMERICANS ARE LISTENING TO THE LIKES OF RUSH LIMBAUGH GUESS WHO'S MOANING AMERICAN PUBLIC OPINION IS BEING DISTORTED AND EXAGGERATED BY THE VOICES THAT DOMINATE THE AIRWAVES OF TALK RADIO CLOG THE WHITE HOUSE SWITCHBOARD AND RESPOND TO CALLIN POLLS INTONES A NEW STUDY BY THE TIMES MIRROR CENTER FOR THE PEOPLE AND THE PRESS TALK RADIO CALLERS IT OPINES ARE RABIDLY ANTICONGRESSIONAL IN THEIR VIEWPOINT THEY'VE GOT AN OPINION ALL RIGHT DURING THE RECENT DEBATE ON THE CLINTON BUDGET TALK SHOWS DID INDEED HELP GENERATE 100000 CALLS AN HOUR INTO CAPITOL HILL ITS SWITCHBOARD BRIEFLY BROKE DOWN MEMBERS OF CONGRESS MAY NOT CARE FOR THE ATTENTION BUT DESPITE A FEW EXCESSES TALK RADIO HAS BECOME A THRIVING PART OF THE NEW WIREDUP DEMOCRACY RUSH LIMBAUGH THE GODZILLA OF TALK RADIO HAS 20 MILLION LISTENERS A WEEK MEMBERS OF CONGRESS AREN'T AMONG THEM REP BILL HEFNER A FORMER BROADCASTER SAYS TALK RADIO SCARES ME HE COMPLAINS THAT NEGATIVE ATTACKS ON CONGRESS ARE GETTING TO THE POINT WHERE WE'RE NOT ABLE TO GOVERN NO COMMENT NOW THERE'S A MOVE AFOOT TO REIN IN RUSH AND HIS CONFRERES REP HEFNER HOUSE ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL AND SENATOR ERNEST HOLLINGS ARE GETTING READY TO DISINTER THE FAIRNESS DOCTRINE WE'LL CALL IT THE HUSH RUSH RULE REMEMBER THE FAIRNESS DOCTRINE IT CLAIMED TO REQUIRE BROADCASTERS TO PROVIDE EQUAL TIME TO ALL SIDES OF CONTROVERSIAL ISSUES IN PRACTICE IT MAINLY GAVE INCUMBENTS LEVERAGE OVER THEIR OPPONENTS THE REAGAN ADMINISTRATION KILLED IT IN 1987 AFTER PROVING CONGRESS HADN'T AUTHORIZED IT IT WAS DREAMED UP BY FEDERAL COMMUNICATIONS COMMISSION STAFFERS IN 1949 AND WAS QUICKLY DUBBED THE BLANDNESS DOCTRINE IT LED TO TIMID DON'TROCKTHEBOAT COVERAGE RECALLS BILL MONROE THE FORMER HOST OF NBC'S MEET THE PRESS THE FAIRNESS DOCTRINE HAD FANS ON THE RIGHT AND LEFT REED IRVINE AND PHYLLIS SCHLAFLY SAW IT AS A WAY TO PRESSURE LIBERAL NETWORK SPIN BUT THE TELECOMMUNICATIONS REVOLUTION HAS MADE THE DEBATE LARGELY IRRELEVANT THE DECLINE OF THE NETWORKS' VIEWERSHIP AND THE RISE OF CNN CSPAN TALK RADIO AND EVEN COMPUTER BULLETIN BOARDS HAVE SHOWN THAT THE ANSWER TO MEDIA BIAS IS MORE COMPETITION NOT CONTROL IN PRACTICE A REVIVED FAIRNESS DOCTRINE COUPLED WITH THE FCC'S LICENSERENEWAL POWER WOULD BE A MUZZLE THE NIXON ADMINISTRATION USED IT TO TORMENT LEFTWING BROADCASTERS THE KENNEDY ADMINISTRATION USED IT AS A POLITICAL WEAPON CONSIDER THE WORDS OF BILL RUDER PRESIDENT KENNEDY'S ASSISTANT SECRETARY OF COMMERCE OUR STRATEGY WAS TO USE THE FAIRNESS DOCTRINE TO CHALLENGE AND HARASS RIGHTWING BROADCASTERS AND HOPE THAT THE CHALLENGES WOULD BE SO COSTLY TO THEM THAT THEY WOULD BE INHIBITED AND DECIDE IT WAS TOO EXPENSIVE TO CONTINUE ANYWAY THE WORLD OF TALK RADIO IS ALREADY BALANCED POLITICALLY THE SAME TIMES MIRROR STUDY THAT DEEMED IT A MENACE FOUND THAT MOST OF THE 112 HOSTS IT SURVEYED WERE CENTRISTS INDEED A PLURALITY OF HOSTS LEAN TO THE DEMOCRATS AND MORE OF THEM VOTED FOR BILL CLINTON THAN FOR EITHER GEORGE BUSH OR ROSS PEROT THE PROBLEM FOR LIBERALS OF COURSE IS THAT MOST OF THE POPULAR NATIONAL HOSTS LIMBAUGH PAT BUCHANAN GENE BURNS AND G GORDON LIDDY ARE CONSERVATIVES LIBERALS HAVE A LOWER MARKET SHARE BECAUSE ACCORDING TO LISTENERS CONSERVATIVE TALK RADIO PROVIDES INFORMATION THAT ISN'T CARRIED OR IS MOCKED IN THE MAINSTREAM MEDIA AND PRESS WE'D SAY THERE'S ALSO A PRETTY SIMPLE REASON FOR RUSH LIMBAUGH'S SUCCESS LIBERALISM TODAY IS OFTEN JUST SILLY ITS EXCESSES INVITE COMIC KICKS IF CUTTING THE CAPITALGAINS TAX WAS A JOKE LIBERALS WOULD HAVE 'EM ROLLING IN THE AISLES THE TAXANDSPEND CONGRESS HOWEVER IS A LAUGH A MINUTE WHAT'S REALLY BEHIND THE PROPOSED HUSH RUSH RULE IS THAT MEMBERS OF CONGRESS JUST DON'T LIKE THE WIDE INTEREST IN PUBLIC POLICY MATTERS THAT TALK RADIO GENERATES AT A RECENT TOWN MEETING FRESHMAN REP DON JOHNSON A GEORGIA DEMOCRAT WAS DISPLEASED BY THE ANGRY QUESTIONS HE GOT ON WHY HE VOTED FOR THE CLINTON BUDGET HERE'S HOW HE BRUSHED ASIDE ONE ON ECONOMIC GROWTH AND JOB CREATION THAT'S ANOTHER RUSH LIMBAUGH QUESTION I GET IT AT EVERY MEETING THE PURPOSE OF THE BILL IS DEFICIT REDUCTION NOT CREATING NEW JOBS THIS EFFORT TO RESURRECT THE FAIRNESS DOCTRINE BEARS WATCHING THE BELTWAY IS TRYING TO PULL THE PLUG ON ITS EFFECTIVE CRITICS SEE RELATED LETTERS LETTERS TO THE EDITOR DIVERSITY SHOULD RULE THE AIRWAVES WSJ SEPT 30 1993 9309010150 YY93 MM09 9309300128 930930 BUSINESS BRIEFS TIFFANY & CO OPENED A STORE IN BAL HARBOUR FLA ITS FIRST IN THE MIAMI METROPOLITAN AREA ALAMCO INC'S TOTAL PROVEN GAS AND OIL RESERVES INCREASED 156 IN THE FIRST HALF OF 1993 REACHING 741 EQUIVALENT BILLION CUBIC FEET FROM 641 BILLION AT YEAREND 1992 HIBERNIA CORP SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE COMMERCIAL BANCSHARES INC FRANKLIN LA FOR A TAXFREE TRANSFER OF 187 MILLION IN HIBERNIA COMMON SHARES TO COMMERCIAL BANCSHARES SHAREHOLDERS HARSCO CORP SIGNED A 25 MILLION 10YEAR CONTRACT TO PROVIDE HYLSA WORKS WITH SPECIALIZED STEELMILL SERVICES AT HYLSA'S PUEBLA MEXICO SITE 9309300127 930930 WHO'S NEWS MAXUM HEALTH CORP MAXUM HEALTH CORP DALLAS RONALD G PANTELLO 49 YEARS OLD AND ANDREW J TOFE 53 WERE APPOINTED DIRECTORS OF THIS MEDICAL SERVICES COMPANY EXPANDING THE BOARD TO FIVE MEMBERS MR PANTELLO IS CHIEF EXECUTIVE OFFICER OF THE ADVERTISING FIRM LALLY MCFARLAND & PANTELLO HIS TERM EXPIRES IN 1995 MR TOFE IS PRESIDENT AND CHIEF EXECUTIVE OF CERAMED CORP A BONEGRAFT RESEARCH CONCERN BASED IN LAKEWOOD COLO HIS TERM EXPIRES AT THE ANNUAL MEETING OCT 27 WHEN HE WILL BE NOMINATED FOR A FULL THREEYEAR TERM THE COMPANY SAID MAXUM ALSO SAID WILLIAM L MACKNIGHT 41 WHO RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE EARLIER THIS YEAR RECENTLY RESIGNED AS A DIRECTOR 9309300126 930930 WHO'S NEWS OPTION CARE INC OPTION CARE INC BANNOCKBURN ILL R RICHARD WIELAND II WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PROVIDER OF HOMEINFUSION THERAPY MR WIELAND 48 YEARS OLD HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CANCER TREATMENT CENTERS DEVELOPMENT OF ARLINGTON HEIGHTS ILL AND BEFORE THAT WAS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT LYPHOMED INC MR WIELAND WHO BEGINS HIS NEW JOB OCT 18 SUCCEEDS SHELDON D ASHER 39 WHO RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER TO PURSUE OTHER INTERESTS JOHN N KAPOOR 50 OPTION CARE'S CHAIRMAN ASSUMED THE JOB OF CHIEF EXECUTIVE OFFICER WHEN MR ASHER LEFT 9309300125 930930 TECHNOLOGY & HEALTH LOTUS PREDICTS SOARING SALES OF 2 PRODUCTS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS LOTUS DEVELOPMENT CORP'S CHAIRMAN JIM P MANZI FORECAST SHARPLY HIGHER SALES OF THE COMPANY'S NOTES AND CCMAIL PRODUCTS REACHING AN ANNUAL RATE OF NEARLY 250 MILLION BY THE END OF THE YEAR MR MANZI'S COMMENTS IMPLIED SALES OF 250 MILLION OR MORE NEXT YEAR FOR THE TWO PRODUCTS COMBINED WHICH WOULD BE BOTH A HUGE INCREASE FROM THIS YEAR AND EVIDENCE THAT LOTUS CAN CREATE BIG HITS OTHER THAN SPREADSHEET SOFTWARE NOTES IS AN ENHANCEMENT FOR OFFICE COMPUTER NETWORKS CCMAIL IS AN ELECTRONICMAIL PACKAGE ANALYSTS FIGURE NOTES AND CCMAIL WILL HIT ABOUT 90 MILLION IN COMBINED SALES THIS YEAR OR ABOUT 10 OF THE COMPANY'S EXPECTED 1993 TOTAL SEPARATELY JEFFREY BEIR VICE PRESIDENT FOR SPREADSHEETS SAID LOTUS 123 RELEASE 4 FOR WINDOWS IS SELLING STRONGLY ACROSS ALL GEOGRAPHIES THE 123 LINE STILL PROVIDES MOST OF LOTUS SALES LOTUS SHARES WHICH HAD ADVANCED STEADILY IN RECENT DAYS FELL 25 CENTS TO 4625 A SHARE IN NATIONAL OVERTHECOUNTER TRADING SPEAKING AT A DAYLONG TECHNOLOGY BRIEFING MR MANZI DISMISSED AS A LOT OF NOISE THE PLANS OF LARGE DATABASE SOFTWARE MAKERS APPARENTLY REFERRING TO ORACLE CORP TO ENTER SOMETIME NEXT YEAR THE FASTGROWING MARKET FOR NETWORK APPLICATIONS SOFTWARE SOMETIMES CALLED GROUPWARE HE SAID THEIR PLANNED APPLICATIONS WON'T HAVE NOTES' TWOWAY ABILITY TO UPDATE DATA SIMULTANEOUSLY ACROSS A NETWORK NOTES IS CURRENTLY THE LEADING SOFTWARE APPLICATION IN THIS EMERGING MARKET LOTUS'S CCMAIL IS THE BESTSELLING ELECTRONIC MAIL PRODUCT EXECUTIVES ALSO SAID YESTERDAY THAT SOME CCMAIL FUNCTIONS WILL BE ENHANCED TO MAKE THE PRODUCT WORK MORE SMOOTHLY WITH LOTUS NOTES WITH MORE THAN THREE MILLION CCMAIL USERS EXPECTED BY THE END OF THIS YEAR MAKING THE BACKEND PLUMBING OF THE TWO PRODUCTS WORK MORE CLOSELY TOGETHER HELPS SEED THE MARKET FOR FUTURE NOTES SALES SAID JEFF PAPOWS VICE PRESIDENT OF THE NOTES DIVISION MR MANZI SAID THAT WITH GROWTH IN SALES OF PERSONAL COMPUTERS SLOWING DOWN THE REAL GROWTH IS IN NETWORKING THOSE COMPUTERS AND IN MOBILE COMPUTING HE ADDED THAT NOTES IS NOW THE MOST WIDELY INSTALLED CLIENTSERVER APPLICATION REFERRING TO NETWORKS OF PCS OR CLIENTS TIED TOGETHER WITH ONE OR MANY LARGER COMPUTERS THAT ACT AS SERVERS FOR DATA STORAGE AND MANAGEMENT WITHIN A NETWORK 9309300124 930930 SOUND ADVICE SAYS PROBE FOUND NO SIGN OF AUDIT TAMPERING DANIA FLA SOUND ADVICE INC SAID AN INVESTIGATION BY SPECIAL COUNSEL FOUND NO EVIDENCE TO SUPPORT ALLEGATIONS THAT THE COMPANY INTERFERED WITH THE AUDIT OF ITS 1992 RESULTS THE COMPANY SAID THE REPORT WAS DONE BY A LAW FIRM HIRED TO INVESTIGATE A FORMER SECURITY GUARD'S ALLEGATIONS IN APRIL THAT MANAGEMENT DIDN'T SUPPLY CERTAIN INFORMATION TO DELOITTE & TOUCHE AUDITORS THE RETAILER OF CONSUMER ELECTRONICS ALSO SAID DELOITTE & TOUCHE RAISED QUESTIONS ABOUT THE SPECIAL COUNSEL'S REPORT BUT SOUND ADVICE SAID IT STILL EXPECTS ITS FORMER INDEPENDENT ACCOUNTANT TO REISSUE THE 1992 AUDITORS' REPORT IN APRIL SOUND ADVICE SWITCHED TO KPMG PEAT MARWICK AS ITS INDEPENDENT ACCOUNTANT SOUND ADVICE ALSO NAMED A NEW CHIEF FINANCIAL OFFICER KENNETH L DANIELSON PREVIOUSLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT STORER COMMUNICATIONS INC A UNIT OF COMCAST CORP MR DANIELSON 43 YEARS OLD SUCCEEDS THOMAS A FLOERCHINGER 48 WHO WILL BE A CONSULTANT UNTIL YEAR'S END PETER BESHOURI CHIEF EXECUTIVE OFFICER SAID THE CHANGE WAS UNRELATED TO THE INVESTIGATION OF THE COMPANY'S FINANCIAL RESULTS SOUND ADVICE ALSO REPORTED NET INCOME FOR THE FISCAL FOURTH QUARTER ENDED JUNE 30 OF 107000 OR THREE CENTS A SHARE ON SALES OF 337 MILLION A YEAR EARLIER IT HAD A NET LOSS OF 18 MILLION OR 47 CENTS A SHARE ON SALES OF 296 MILLION 9309300123 930930 BENEFITS ADMINISTRATOR AGREES TO RESCIND CAP ON AIDS TREATMENTS LOS ANGELES A HEALTHBENEFITS ADMINISTRATOR AGREED TO RESCIND A 5000 CAP IT PUT ON BENEFITS FOR AIDS TREATMENTS SETTLING A CASE INITIATED BY TWO SOUTHERN PACIFIC TRANSPORTATION CO EMPLOYEES THE CASE FILED IN FEDERAL COURT HERE AROSE WHEN THE EMPLOYEES OF THE SOUTHERN PACIFIC RAIL CORP UNIT FILED CLAIMS FOR AIDSRELATED MEDICAL TREATMENTS AND WERE TOLD BY THE BENEFITS ADMINISTRATOR ALLIED SERVICES DIVISION WELFARE FUND THAT THERE WAS A 5000 CAP ON SUCH BENEFITS EVEN THOUGH THE CAP ON ALL OTHER CATASTROPHIC ILLNESSES WAS 300000 THE EMPLOYEES ASKED THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION TO INVESTIGATE AND THE COMMISSION LAST MONTH INITIATED A LAWSUIT ALONG WITH LAMBDA LEGAL DEFENSE AND EDUCATION FUND A GAYRIGHTS LEGAL ORGANIZATION REPRESENTING ONE OF THE EMPLOYEES MICHAEL GILMAN AS PART OF THE SETTLEMENT ALLIED SERVICES AGREED TO RESCIND THE CAP AND PAY THE EMPLOYEES AN AMOUNT OF MONEY THAT WASN'T DISCLOSED LAST MONTH A FEDERAL JUDGE HERE GRANTED A TEMPORARY RESTRAINING ORDER AGAINST ALLIED SERVICES' ENFORCEMENT OF THE 5000 CAP AS THE RESULT OF THIS CASE CLEARLY DEMONSTRATES THE AMERICANS WITH DISABILITIES ACT PROHIBITS EMPLOYMENTRELATED HEALTH PLANS FROM IMPOSING CAPS OR EXCLUSIONS ON AIDSRELATED BENEFITS SAID MICHAEL ISBELL DIRECTOR OF LAMBDA'S AIDS PROJECT AND COCOUNSEL ON THE CASE 9309300122 930930 WHAT'S NEWS BUSINESS & FINANCE PRUDENTIAL'S BROKERAGE FIRM UNIT AGREED TO SETTLE FEDERAL CIVIL CHARGES OF IMPROPERLY SELLING LIMITED PARTNERSHIPS IN THE 1980S AND TO PAY PENALTIES AND RESTITUTION OF 345 MILLION PEOPLE FAMILIAR WITH THE CASE SAID ALSO STATE SECURITIES REGULATORS ARE IN TALKS WITH PRUDENTIAL FOR ADDED PENALTIES OF AS MUCH AS 25 MILLION VIACOM OBTAINED A 600 MILLION INVESTMENT FROM BLOCKBUSTER ENTERTAINMENT WHILE QVC LINED UP CHEMICAL BANKING TO MANAGE A 3 BILLION FINANCING EFFORT AS RIVAL BIDDERS FOR PARAMOUNT STEPPED UP A SEARCH FOR CASH DISNEY AGREED TO LICENSE MORE THAN 350 MOVIES TO LIBERTY MEDIA'S PAYTV UNIT ENDING A LONGTERM RELATIONSHIP WITH VIACOM'S SHOWTIME PEOPLE CLOSE TO THE SITUATION SAID UNITED AIR'S FLIGHT ATTENDANTS UNION ABRUPTLY PULLED OUT OF LABORCONCESSION TALKS THAT INCLUDED A PLAN TO SET UP A LOWCOST LOWFARE AIRLINE TO OPERATE WITHIN THE GIANT CARRIER OPEC MEMBERS AGREED ON HOW TO DIVIDE THEIR PRODUCTION LEVEL AND EXTENDED THE OUTPUT ARRANGEMENT TO SIX MONTHS INSTEAD OF THE EXPECTED THREE STOCK MUTUAL FUNDS ATTRACTED A RECORD 121 BILLION IN AUGUST A 24 RISE FROM JULY WITH ALMOST HALF THE MONEY GOING INTO FUNDS THAT INVEST ABROAD THE PRITZKER FAMILY IS TRYING TO GET BACK INTO THE AIRLINE BUSINESS WITH A 150 MILLION BID TO TAKE CONTROL OF AMERICA WEST WHICH IS UNDER BANKRUPTCY PROTECTION THE AIRLINE'S BOARD REJECTED THE BID BUT SOME EXECUTIVES REMAIN INTERESTED LESLIE FAY RESTATED ITS EARNINGS FOR THE PAST THREE YEARS TO REVERSE 81 MILLION OF ACCOUNTING IRREGULARITIES IT ALSO TOOK THE UNUSUAL STEP OF STRIPPING ITS CHAIRMAN AND CEO JOHN POMERANTZ OF FINANCIAL RESPONSIBILITIES THE ECONOMY SLOWED CONSIDERABLY IN THE FIRST HALF FIGURES CONFIRM BUT ANALYSTS EXPECT GROWTH TO BE QUICKER IN THE ENSUING TWO PERIODS GM'S BOARD PLANS TO REVIEW THE COMPANY'S LABOR STRATEGY MONDAY AS THE COMPANY APPEARS TO BE GETTING BACKED INTO A CORNER BY ITS UNIONS THE FTC SAID IT WILL SEEK TO TEMPORARILY BLOCK GE'S PLANNED PURCHASE OF CHRYSLER'S FLEET OF RAILROAD BOXCARS CLINTON UNVEILED AN EXPORT PLAN THAT MAKES 150 MILLION OF US FOREIGN AID CONTINGENT ON RECIPIENT NATIONS' BUYING US GOODS AND SERVICES NATIONAL MEDICAL AGREED TO PAY UP TO 125 MILLION TO SIX INSURERS TO SETTLE ALLEGATIONS THAT IT FILED 740 MILLION IN FRAUDULENT PSYCHIATRIC CLAIMS CLINTON IS EXPECTED TO SET A STRICT RECYCLING STANDARD FOR ALL PAPER PURCHASED BY THE EXECUTIVE BRANCH MCI RESHUFFLED SENIOR MANAGEMENT IN THE WAKE OF ITS ALLIANCE WITH BRITISH TELECOMMUNICATIONS LEAVING THE POSITION OF PRESIDENT VACANT MCI PROMOTED THREE INSIDERS TO HEAD NEW GROUPS FOCUSED ON THE CONSUMER BUSINESS AND INTERNATIONAL MARKETS NEW CONSTRUCTION SLIPPED 1 IN AUGUST BECAUSE OF A DROP IN NONRESIDENTIAL BUILDING AND NONBUILDING CONSTRUCTION ACCORDING TO A SURVEY SONY UNVEILED ITS SECONDGENERATION LINEUP OF MINIDISC PLAYERS HOPING THE SMALLER LIGHTER MODELS WILL HELP STIMULATE THE LANGUID CONSUMER ELECTRONICS MARKET AND GIVE SONY A BOOST BUT SONY'S PRESIDENT ACKNOWLEDGED THAT THE TIMING ISN'T IDEAL FOR THE NEW MACHINES ESPECIALLY IN JAPAN BONDS LEHMAN BROTHERS TREASURY INDEX 562285 OFF 4020 COMMODITIES OIL 1867 A BARREL UP 71 CENTS DOW JONES FUTURES INDEX 12515 OFF 100 SPOT INDEX 11862 OFF 036 DOLLAR 10505 YEN UP 015 16136 MARKS UP 00016 9309300121 930930 CLINTON EXPORT STRATEGY TO ALLOW AID TO BE TIED TO BUYING OF US PRODUCTS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S NATIONAL EXPORT STRATEGY WILL ALLOW 150 MILLION OF US FOREIGN AID TO BE CONTINGENT ON RECIPIENT NATIONS' BUYING AMERICAN GOODS AND SERVICES IN UNVEILING THE STRATEGY MR CLINTON SAID THE PURPOSE OF THE NEW FUND TO BE ADMINISTERED BY THE EXPORTIMPORT BANK WILL BE TO COUNTER THE TIED AID PRACTICES OF OUR COMPETITORS THE POLICY IS A SHARP DEPARTURE FROM LONGSTANDING US PRACTICE BUT ITS RELATIVELY SMALL FUNDING MAKES IT A LARGELY SYMBOLIC TOOL TO MATCH OTHER NATIONS OR DISCOURAGE THEM FROM OFFERING TIED AID THE PRESIDENT SAID AMERICAN COMPANIES LOSE FROM 400 MILLION TO 800 MILLION YEARLY IN EXPORT SALES BECAUSE OF TIED AID FROM OTHER COUNTRIES IN HIS EXPORT PLAN MR CLINTON ALSO INCREASED THE NUMBER OF COMPUTERS AND SUPERCOMPUTERS THAT CAN BE SOLD WITHOUT EXPORT LICENSES HE RAISED THE CONTROL THRESHOLD TO 194 MILLION THEORETICAL OPERATIONS A SECOND OR MTOPS FROM 125 MTOPS FOR COMPUTER EXPORTS TO MOST COUNTRIES WHILE THE THRESHOLD FOR SUPERCOMPUTERS WAS EXPANDED TO 2000 MTOPS FROM 195 MTOPS THE PLAN ALLOWS 70 OF ALL COMPUTERS TO BE EXPORTED AND FREES UP AN ESTIMATED 35 BILLION OF HIGHTECH EXPORTS THE PLAN COMPILED BY THE TRADE PROMOTION COORDINATING COMMITTEE SAID THAT IN THE 1995 BUDGET THE SPENDING OF THE 43 BILLION ANNUAL OUTLAY PROMOTING EXPORTS WILL BE COORDINATED LIKELY SHIFTING SOME FUNDS TO MANUFACTURING EXPORTS FROM AGRICULTURE IT ALSO SHORTENS THE TIME FOR RECEIVING EXPORT LICENSES CONSOLIDATES GOVERNMENT EXPORT SERVICES IN FOUR CITIES AND PROVIDES HIGHLEVEL GOVERNMENT ADVOCACY ON BEHALF OF US COMPANIES SEEKING EXPORT OPPORTUNITIES MR CLINTON'S PLAN WHICH IS TOUTED TO INCREASE TOTAL EXPORTS TO 1 TRILLION BY THE YEAR 2000 AND CREATE SIX MILLION JOBS WAS WELL RECEIVED BY THE COMPUTER INDUSTRY IT CAN HAVE A SIGNIFICANT IMPACT SAID ROBERT DE HAVEN VICE CHAIRMAN OF THE AMERICAN ELECTRONICS ASSOCIATION MR DE HAVEN SAID THERE ARE 25 MILLION US JOBS IN THE INDUSTRY WITH 25 OF THEM LINKED TO EXPORT SALES BUT THE MOST CONTROVERSIAL PROVISION OF MR CLINTON'S PLAN WAS ALLOWING THE GOVERNMENT TO REINSTITUTE TIED AID A PRACTICE THAT HAD BEEN LARGELY BANNED SINCE 1973 MR CLINTON DIDN'T MAKE HIS DECISION ON THIS ISSUE UNTIL 10 AM YESTERDAY TRADE OFFICIALS SAID JUST 2 1/2 HOURS BEFORE HIS ANNOUNCEMENT OPPONENTS SUCH AS THE STATE DEPARTMENT HAVE ARGUED THAT THE US MUST MAINTAIN THE HIGH GROUND AND CONVINCE OTHER NATIONS NOT TO OFFER TIED AID THIS STRATEGY HOWEVER HAS BEEN TRIED FOR 20 YEARS WITH ONLY MIXED RESULTS FOR INSTANCE NEW RESTRICTIONS IN A 1991 GLOBAL AGREEMENT REDUCED TIED AID WORLDWIDE FROM AN ANNUAL AVERAGE OF 15 BILLION IN THE PREVIOUS FIVE YEARS TO 6 BILLION IN 1992 STILL IT HAS PREVENTED US COMPANIES FROM COMPETING IN SEVERAL AREAS PARTICULARLY ASIA CHINA FOR INSTANCE WILL RECEIVE 19 BILLION IN TIED AID THIS YEAR US TRADE OFFICIALS HOWEVER ARE ALARMED BY A DEVELOPING TREND AS OF AUGUST THE JAPANESE HAD SPENT 56 BILLION ON UNTIED AID THIS YEAR MONEY THAT ISN'T LINKED TO CONTRACTS BY ANY WRITTEN AGREEMENTS HOWEVER 80 TO 90 OF THOSE FUNDS WERE USED TO PURCHASE GOODS AND SERVICES FROM JAPAN AT THE SAME TIME TRADE OFFICIALS SAID THE JAPANESE HAVE REDUCED THEIR TIED AID BY AN AMOUNT NEARLY EQUAL TO THE RISE IN UNTIED AID OFFICIALS SAID THAT IF THE TREND CONTINUES THE US WILL SEEK TOUGHER SCRUTINY OF UNTIED AID IN TRADE NEGOTIATIONS PEOPLE SAID THAT WE WOULD NEVER BREAK THROUGH ON THIS ONE BECAUSE THE STATE DEPARTMENT WOULD DIG THEIR HEELS IN COMMERCE SECRETARY RON BROWN SAID IN AN INTERVIEW OBVIOUSLY WE HAD SOME DISAGREEMENT BUT WE HAVE BROKEN THROUGH RATHER DRAMATICALLY SEPARATELY TRANSPORTATION DEPARTMENT OFFICIALS SAID THE PRESIDENT HAS APPROVED A FIVEPART INITIATIVE TO REJUVENATE THE US CIVILIAN SHIPBUILDING INDUSTRY THE PROGRAM INCLUDES RELEASING 3 BILLION IN NEW LOAN GUARANTEES TO DOMESTIC AND FOREIGN BUYERS OF USBUILT SHIPS PUTTING NEW PRESSURE ON EUROPEAN AND ASIAN COUNTRIES TO STOP SUBSIDIZING THEIR SHIPBUILDERS AND NEGOTIATING FOREIGN ORDERS DIRECTLY THE ADMINISTRATION ALREADY HAS BEEN DOING THAT IN THE AVIATION INDUSTRY TRANSPORTATION SECRETARY FEDERICO PENA IS TO TRAVEL TO SAUDI ARABIA THIS WEEKEND TO TRY TO NAIL DOWN AN ORDER FOR AS MUCH AS 6 BILLION IN USBUILT COMMERCIAL JETS FROM THE STATERUN AIRLINE IN SAUDI ARABIA PRESIDENT CLINTON WAS SAID TO HAVE SECURED THE DEAL LAST MONTH BUT MR PENA SAID YESTERDAY THE ADMINISTRATION WILL CONTINUE ITS SHOW OF SUPPORT UNTIL THE SAUDIS MAKE AN OFFICIAL ANNOUNCEMENT HE SAID HE WILL MAKE A SIMILAR PITCH TO THE UNITED ARAB EMIRATES ON THIS TRIP IN WHICH HE WILL BE ACCOMPANIED BY DAVID HINSON HEAD OF THE FEDERAL AVIATION ADMINISTRATION 9309300120 930930 WHO'S NEWS CHRYSLER REORGANIZES ITS INTERNATIONAL LINES HIGHLAND PARK MICH CHRYSLER CORP IS REORGANIZING ITS INTERNATIONAL OPERATIONS ALONG REGIONAL LINES AS PART OF THE COMPANY'S EFFORT TO STRENGTHEN EXPORT SALES AS PART OF THE REORGANIZATION THOMAS C GALE CHRYSLER'S DESIGN CHIEF WHO WAS NAMED HEAD OF INTERNATIONAL OPERATIONS IN JUNE CREATED THREE GENERAL MANAGERS RESPONSIBLE FOR SEPARATE REGIONS AND A FOURTH MANAGER RESPONSIBLE FOR BUSINESS STRATEGY DARRELL L DAVIS WAS NAMED GENERAL MANAGER EUROPE PETER C BADORE WAS NAMED GENERAL MANAGER ASIA/PACIFIC AND JONATHAN B HOLCOMB WAS NAMED GENERAL MANAGER LATIN AMERICA MIDDLE EAST AND AFRICA P JEFFREY TRIMMER WAS NAMED GENERAL MANAGER BUSINESS STRATEGY THE MOVES ARE EFFECTIVE IMMEDIATELY PREVIOUSLY CHRYSLER'S RAPIDLY GROWING EXPORT SALES HAD BEEN MANAGED GLOBALLY WITH A HEAD OF SALES AND A HEAD OF KIT OPERATIONS AND OTHER FUNCTIONAL GROUPS THE REGIONAL ORGANIZATION WILL ALLOW CHRYSLER TO BETTER RESPOND TO DIFFERENT MARKETS CHRYSLER SAID 9309300119 930930 NEW YORK REGULATORS TO ANALYZE PAY LEVELS AT STATE'S BIG UTILITIES ALBANY NY NEW YORK STATE REGULATORS BEGAN A FORMAL ANALYSIS OF EXECUTIVE PAY AT THE 12 LARGEST UTILITIES IN THE STATE EXECUTIVE PAY AT THE STATE'S ELECTRIC UTILITIES HAS DRAWN PROTESTS FROM CONSUMER ADVOCACY GROUPS WHO HAVE BECOME INCREASINGLY FRUSTRATED BY RISING RATES ONE GROUP THE CITIZENS UTILITIES BOARD HAS CONTENDED THAT LOOSE REGULATION HAD LED TO EXORBITANT EXECUTIVE PAY LEVELS THEY WILL FIND THAT WE ARE IN LINE WITH INDUSTRY STANDARDS IF NOT A LITTLE BIT BEHIND SAID A SPOKESWOMAN FOR NIAGARA MOHAWK POWER CORP LAST YEAR RETIRED CHAIRMAN WILLIAM J DONLON EARNED ABOUT 496000 IN SALARY AND BONUSES A SPOKESMAN FOR CONSOLIDATED EDISON CO OF NEW YORK SAID A REVIEW OF OUR SALARY POLICIES WILL FIND THE METHOD OF CALCULATING THEM BOTH FAIR TO THE EMPLOYEES INVOLVED AND RATEPAYERS IN 1992 COMPANY CHAIRMAN EUGENE R MCGRATH RECEIVED ABOUT 805000 IN SALARIES AND BONUSES OTHER UTILITIES INVOLVED IN THE AUDIT OF EXECUTIVE PAY INCLUDE NYNEX CORP'S NEW YORK TELEPHONE CO UNIT BROOKLYN UNION GAS CO AND LONG ISLAND LIGHTING CO 9309300118 930930 WHO'S NEWS SUNGLASS HUT INTERNATIONAL SUNGLASS HUT INTERNATIONAL MIAMI JOHN H DUERDEN 52 YEARS OLD PRESIDENT OF REEBOK INTERNATIONAL LTD'S INTERNATIONAL DIVISION AND ROBERT C GRAYSON 48 FORMERLY PRESIDENT OF LERNER NEW YORK A DIVISION OF LIMITED WERE ELECTED DIRECTORS OF THIS SUNGLASS RETAILER EXPANDING THE BOARD TO EIGHT MEMBERS 9309300117 930930 MEDICINE PHONE LINES ZIP XRAY IMAGES CROSSCOUNTRY BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL AT THE EMERGENCY ROOM OF THE 49BED CARROLL COUNTY MEMORIAL HOSPITAL IN CAROLLTON KY PATIENTS OFTEN HAVE TO WAIT SEVERAL HOURS FOR RESULTS OF THEIR XRAYS TO GET AN EXPERT INTERPRETATION OF THE SHADOWY IMAGES THE FILMS MUST BE RUSHED BY COURIER TO LOUISVILLE 50 MILES AWAY BUT IN A FEW WEEKS THE DELAYS WILL COME TO AN END THE LITTLE HOSPITAL WILL BEGIN USING SPECIAL BELLSOUTH CORP TELEPHONE LINES TO FLASH XRAY IMAGES TO A BIG HOSPITAL IN LOUISVILLE WHERE RADIOLOGISTS WILL PROVIDE IMMEDIATE READINGS OF THE FILMS WE'RE GOING TO SAVE AT LEAST 5000 A YEAR IN COURIER FEES SAYS ROGER WILLIAMS THE HOSPITAL'S EXECUTIVE OFFICER THANKS TO A BOOM IN TELECOMMUNICATIONS TECHNOLOGY METHODS OF TRANSMITTING MEDICAL IMAGES ARE BECOMING MUCH CHEAPER AND MORE EFFICIENT IN MANY CASES IMAGES BEING RELAYED TO RADIOLOGY CENTERS ARE SO CLEAR AND DETAILED THAT DOCTORS CAN RELY ON THEM TO MAKE CRITICAL DECISIONS ABOUT PATIENT CARE THE NEW IMAGETRANSMISSION TECHNOLOGY IS FOSTERING A FASTGROWING NEW MEDICAL INDUSTRY TELERADIOLOGY CENTERS IN MEDICAL HUBS SUCH AS BOSTON DURHAM NC AND ROCHESTER MINN NOW PROVIDE MANY SMALL RURAL HOSPITALS WITH RAPID INTERPRETATIONS OF BOTH XRAY FILMS AND COMPUTERDRIVEN BODY SCANS PROVIDERS OF LONGDISTANCE RADIOLOGY SEE THEMSELVES PLAYING A GROWING ROLE AS NATIONAL HEALTH REFORM GATHERS MOMENTUM IN PARTICULAR ADVOCATES OF THESE SERVICES TOOK HEART FROM PRESIDENT CLINTON'S HEALTHCARE SPEECH LAST WEEK IN WHICH THE PRESIDENT CALLED FOR LINKING RURAL DOCTORS AND HOSPITALS WITH HIGHTECH URBAN MEDICAL CENTERS IN WALTHAM MASS TELERADIOLOGY SERVICES INC FOUNDED IN 1992 BY FORMER MORGAN STANLEY & CO INVESTMENT BANKER SCOTT SHELDON PROVIDES TELERADIOLOGY LINKS TO A HANDFUL OF SMALL HOSPITALS IN NEW ENGLAND AND ELSEWHERE DIAGNOSES CAN EMERGE IN A MATTER OF MINUTES FASTER IN SOME CASES THAN IT WOULD TAKE FOR OUTLYING HOSPITALS TO DO THE WORK THEMSELVES LIKE MANY NEW MEDICAL TECHNOLOGIES TELERADIOLOGY HAS ITS CONTROVERSIAL SIDE THIS MONTH THE AMERICAN COLLEGE OF RADIOLOGISTS VOTED TO SET STANDARDS ON WHAT'S ALLOWABLE IN TELERADIOLOGY AMONG ITS CONCERNS WHETHER IMAGE QUALITY COULD SUFFER IN LONGDISTANCE TRANSMISSION AND WHETHER TELERADIOLOGISTS MIGHT MAKE OVERHASTY DIAGNOSES IN AN EFFORT TO BOOST REVENUE THIS IS A FASCINATING AREA THAT HAS TREMENDOUS POTENTIAL TO HELP ISOLATED AREAS SAYS GEORGE KAMP A TULSA OKLA RADIOLOGIST WHO IS CHAIRMAN OF THE ACR'S REVIEW PANEL ON TELERADIOLOGY BUT TELERADIOLOGY HAS TO ADHERE TO THE HIGHEST STANDARDS OF MEDICAL ETHICS AND PRACTICE HE SAYS THE ACR WILL SOON TRY TO SPELL OUT RULES FOR IMAGE QUALITY LICENSING LIABILITY REIMBURSEMENT AND SUPERVISION ASSOCIATED WITH TELERADIOLOGY ONE OF THE FASTESTMOVING PLAYERS IN THE FIELD IS TELERADIOLOGY ASSOCIATES IN DURHAM NC RUN BY TWO DOCTORS IN THEIR EARLY 30S WHO PREVIOUSLY TRAINED AT DUKE UNIVERSITY MEDICAL CENTER THE FIRM ANALYZES ABOUT 14000 IMAGES A YEAR COLLECTING THEM FROM ALL OVER THE COUNTRY DAVID FORSBERG ONE OF THE RADIOLOGISTS AT TELERADIOLOGY ASSOCIATES SAYS HIS FIRM HAS HELPED SMALL HOSPITALS SUCH AS ONE IN MARTHA'S VINEYARD MASS SPOT POTENTIALLY LIFETHREATENING PROBLEMS IN A PATIENT'S FILE THAT OTHERWISE MIGHT HAVE BEEN OVERLOOKED HIS FIRM'S GUNGHO MARKETING ALSO HAS DRAWN NOTICE AT ONE POINT THE FIRM MAILED LETTERS TO THOUSANDS OF DOCTORS AND HOSPITALS THROUGHOUT THE US SEEKING TO DRUM UP BUSINESS IN BROCKTON MASS SHIELDS HEALTH CARE GROUP INC HAS SET UP TELERADIOLOGY LINKS CONNECTING ITS SIX IMAGING CENTERS AND OTHER SITES AS OF NOVEMBER THESE WILL LET SHIELDS ANALYZE MAGNETICRESONANCE IMAGES SENT FROM MCLEAN HOSPITAL IN BELMONT MASS ABOUT 40 MILES AWAY YESTERDAY RAYTHEON CORP SAID IT WOULD START SELLING TELEMEDICINE EQUIPMENT IN A JOINT VENTURE WITH TEXAS HEART SURGEON MICHAEL DEBAKEY AND INTERACTIVE TELEMEDICAL SYSTEMS OF AUGUSTA GA RAYTHEON SAID IT WOULD SELL BOTH TELERADIOLOGY GEAR AND VIDEO CAMERAS THAT LET DOCTORS EXAMINE PATIENTS FROM AFAR THE COMPANY PREDICTED THAT SALES FROM THIS NEW VENTURE COULD REACH 500 MILLION A YEAR WITHIN FIVE YEARS BIG HOSPITALS ARE GETTING INTO THE GAME TOO MASSACHUSETTS GENERAL HOSPITAL HAS SET UP A FORPROFIT SUBSIDIARY AMERICAN TELEMEDICINE INTERNATIONAL INC THAT IS LINING UP CONTRACTS IN SAUDI ARABIA TEXAS AND CALIFORNIA IN ROCHESTER MINN THE MAYO CLINIC IS EXAMINING MEDICAL IMAGES TRANSMITTED FROM AFFILIATES IN IOWA FLORIDA AND ARIZONA AND IS CONSIDERING SEEKING BUSINESS FROM NONAFFILIATED HOSPITALS ATTEMPTS TO USE LONGDISTANCE RADIOLOGY DATE BACK TO AT LEAST THE MID1960S AT THAT TIME MASS GENERAL SET UP A MICROWAVE LINK TO A SITE AT BOSTON'S LOGAN AIRPORT ALLOWING ITS RADIOLOGISTS FASTER ACCESS TO IMAGES FROM OUTOFTOWN PATIENTS THE SYSTEM WORKED BUT IT WAS COSTLY AND CUMBERSOME BEFORE 1990 THERE WERE TWO WAYS TO GO WITH TELERADIOLOGY RECALLS FRANK WIEGELT CHIEF RADIOLOGY ADMINISTRATOR AT THE UNIVERSITY OF IOWA THE CHEAP ONE AMOUNTED TO A TELEVISION CAMERA ON A STICK IT MADE ABOMINABLE IMAGES THAT WEREN'T DIAGNOSTIC QUALITY THE OTHER INVOLVED SPENDING 250000 FOR THE NUCLEUS OF A PERMANENT ARCHIVING SYSTEM THEN CAME A SERIES OF BREAKTHROUGHS IN THE PRICE AND QUALITY OF TRANSMISSION AND RECEIVING UNITS NOW MR WIEGELT SAYS TOPFLIGHT SENDING UNITS COST ABOUT 40000 AND RECEIVING UNITS RUN ABOUT 15000 THESE UNITS TYPICALLY CAN DISPLAY 256 DIFFERENT SHADES OF COLOR AND HAVE IMAGES NEARLY ON A PAR WITH ORIGINAL FILM THE EASIEST IMAGES FOR TELERADIOLOGISTS TO HANDLE ARE THOSE PRODUCED BY COMPUTERIZED AXIAL TOMOGRAPHY OR MAGNETIC RESONANCE IMAGING BOTH CAT SCANS AND MRIS START OUT IN DIGITAL FORM MAKING IT POSSIBLE FOR RECEIVING SITES TO GET AN IDENTICAL VERSION OF THE ORIGINAL IMAGE XRAYS POSE GREATER CHALLENGES BECAUSE THEY ARE ORIGINALLY PRINTED ON FINEGRAINED FILM DIGITALTRANSMISSION SYSTEMS NEED VERY HIGH RESOLUTION TO PICK UP TINY ABNORMALITIES SAYS MARK GOLDBERG A RADIOLOGIST AT AMERICAN TELEMEDICINE IT'S IRONIC THAT THE OLDEST FORM OF MEDICAL IMAGING IS THE HARDEST ONE FOR US TO DEAL WITH FROM A TECHNOLOGICAL STANDPOINT SOME ASPECTS OF RADIOLOGY ARE WIDELY REGARDED AS DIFFICULT OR IMPOSSIBLE TO PERFORM BY REMOTE CONTROL MAMMOGRAMS DON'T TRANSMIT WELL OVER DATA LINES ANGIOGRAM MOVIES IN WHICH A DYE THAT SHOWS UP ON XRAY IMAGES IS INJECTED INTO ARTERIES TO SEE IF BLOOD FLOW IS BLOCKED NEED TO BE DONE ON SITE RESEARCHERS AT NEW ENGLAND MEDICAL CENTER IN BOSTON ARE TRYING TO TRANSMIT LIVE VIDEOS OF ANGIOGRAMS TO REMOTE SITES SO THAT TWO RADIOLOGISTS CAN CONFER BUT THEY SAY IT'S A MUCH TOUGHER PROJECT THAN THEY EXPECTED 9309300116 930930 ENTERPRISE FOCUS ON FRANCHISING HEALTH PLAN COULD BOOST SALES OF NURSING FRANCHISES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL CLINTON'S HEALTH PLAN BOOSTS INTEREST IN HOMENURSING FRANCHISES THE PLAN WOULD PROVIDE HOME HEALTHCARE COVERAGE OFTEN OMITTED FROM CURRENT INSURANCE PROGRAMS AND WOULD EVEN COVER LONGTERM HOME CARE FOR THE DISABLED AS A RESULT FRANCHISE SYSTEMS THAT PROVIDE NURSES FOR HOME CARE SEE A BOOM AHEAD IF CONGRESS GOES ALONG WITH THE PRESIDENT AT STAFF BUILDERS INC IN LAKE SUCCESS NY INQUIRIES FROM PROSPECTIVE FRANCHISEES HAVE DOUBLED IN RECENT WEEKS SAYS STEPHEN SAVITSKY CHAIRMAN AIDED BY THE HEALTH PLAN SYSTEMWIDE SALES PROJECTED AT 230 MILLION FOR THE YEAR ENDING FEB 28 COULD DOUBLE OR TRIPLE WITHIN THREE OR FOUR YEARS HE SAYS HEALTH FORCE INC A WOODBURY NY FRANCHISER OWNED BY CAREER HORIZONS INC SAYS IT NOW EXPECTS TO SELL BETWEEN 12 AND 15 FRANCHISES IN THE YEAR ENDING JUNE 30 FOUR OR FIVE MORE THAN IT PREVIOUSLY PROJECTED THE CHAIN NOW INCLUDES 47 FRANCHISED UNITS THE CLINTON PLAN IS JUST WHAT THE DOCTOR ORDERED SAYS GARY J SPIRGEL PRESIDENT OF HEALTH FORCE OF COURSE IF NEW GOVERNMENT COVERAGE FOR HOME HEALTH CARE DOES MATERIALIZE IT MAY NOT TAKE EFFECT FOR A FEW YEARS SAYS KENNETH W RICKERT PRESIDENT OF FIRSTAT OF AMERICA INC A HOMENURSING FRANCHISER IN WEST PALM BEACH FLA BUT PRIVATE INSURERS APPEAR LIKELY TO MOVE SOONER TO EXPAND COVERAGE OF HOME HEALTH CARE WHICH CAN BE LESS EXPENSIVE THAN HOSPITAL CARE HE ADDS HEALTHCARE REFORM IS GOING TO POSITIVELY AFFECT EVERYBODY INVOLVED IN HOME HEALTH CARE HE SAYS FRANCHISERS FEAR THAT MORE STATES WILL SEEK TO TAX ROYALTIES RETAILER TOYS R US INC IS AT THE CENTER OF A TAX DISPUTE THAT HAS FRANCHISERS WORRIED JAY L HALPERN A WASHINGTON FRANCHISING ATTORNEY SAYS FRANCHISERS GENERALLY DON'T PAY STATE INCOME TAXES ON ROYALTIES RECEIVED IN STATES WHERE THEY UNLIKE THEIR FRANCHISEES DON'T HAVE A PHYSICAL PRESENCE BUT COURT DECISIONS TO DATE IN THE TOYS R US DISPUTE MAY ENCOURAGE STATES TO TAX SUCH ROYALTIES THOUGH TOYS R US ISN'T A FRANCHISER THE REASONING USED IN THE RULINGS COULD APPLY TO FRANCHISE CHAINS LAWYERS SAY AS STATES BEGIN TO LOOK FOR NEW SOURCES OF REVENUE FRANCHISERS MAY FALL WITHIN THEIR SIGHTS MR HALPERN SAYS SOUTH CAROLINA'S HIGHEST COURT RULED RECENTLY THAT THE STATE HAS THE POWER TO TAX THE ROYALTIES RECEIVED BY GEOFFREY INC EVEN THOUGH THE TOYS R US UNIT BASED IN DELAWARE HAS NO EMPLOYEES OR OFFICES IN SOUTH CAROLINA AND OWNS NO TANGIBLE PROPERTY THERE GEOFFREY IS A DELAWARE HOLDING COMPANY FOR INTANGIBLE ASSETS OF TOYS R US SUCH AS TRADEMARKS IT COLLECTS ROYALTIES ON THESE INTANGIBLES TOTALING ABOUT 55 MILLION IN 1990 TOYS R US PAYS TAXES TO SOUTH CAROLINA ON INCOME EARNED THERE BUT FIRST DEDUCTS RELATED ROYALTIES PAID TO ITS GEOFFREY UNIT MEANWHILE DELAWARE DOESN'T TAX ROYALTY INCOME WHICH IS ONE REASON THAT BIG COMPANIES SET UP SUBSIDIARIES THERE IN THE FIRST PLACE WHEN SOUTH CAROLINA IMPOSED TAXES ON GEOFFREY'S ROYALTY INCOME IN THE STATE THE COMPANY PAID UNDER PROTEST AND SUED FOR A REFUND GEOFFREY MAINTAINS THAT IT DOESN'T HAVE A SUFFICIENT LINK WITH SOUTH CAROLINA FOR ITS INCOME TO BE TAXABLE THERE AFFIRMING A LOWERCOURT RULING THE STATE'S HIGHEST COURT IN JULY REBUFFED GEOFFREY SOME STORES IN THE STATE USE TOYS R US TRADEMARKS AND PAY GEOFFREY MONEY AND THAT IS ENOUGH OF A LINK TO ALLOW TAXATION OF THE ROYALTIES THE COURT SAID ATTORNEYS FOR GEOFFREY SAY THEY EXPECT TO ASK THE US SUPREME COURT TO REVIEW THE SOUTH CAROLINA CASE YOU CAN SAY CHEESE BUT THESE PIZZA FRANCHISEES WON'T SMILE OWNERS OF LITTLE CAESARS RESTAURANTS FRANCHISED BY THE LITTLE CAESAR ENTERPRISES UNIT OF LITTLE CAESAR INTERNATIONAL INC IN DETROIT ARE THE LATEST TO HOWL OVER PURCHASING PATTERNS INSIDE A CHAIN FRANCHISEES OFTEN ACCUSE FRANCHISERS OF ACTING UNETHICALLY WHEN THEY MARK UP THE PRICES OF SUPPLIES THEY SELL TO FRANCHISEES IN A LAWSUIT FILED LAST WEEK IN FEDERAL COURT IN DETROIT SEVERAL LITTLE CAESARS FRANCHISEES GO FURTHER THEY CHARGE THAT THEIR FRANCHISER HAS ACTUALLY BROKEN ANTITRUST LAWS IN CONTROLLING THE MARKET FOR THE SUPPLIES THEY BUY THE SUIT SEEKS CLASSACTION STATUS ON BEHALF OF HUNDREDS OF CURRENT AND FORMER FRANCHISEES ACCORDING TO THE PLAINTIFFS THE CHAIN SELLS FRANCHISEES SUPPLIES THROUGH BLUE LINE DISTRIBUTING INC A COMPANY OWNED BY LITTLE CAESAR WITH PRICES AT ARTIFICIALLY HIGH AND NONCOMPETITIVE LEVELS ONE OF THE PLAINTIFFS GARY G SMITH IN ORANGE PARK FLA SAYS THE ALLEGED OVERCHARGES ON ITEMS SUCH AS CHEESE MEAT AND PAPER GOODS AVERAGE ABOUT 8 THE SUIT ALSO SAYS FRANCHISEES ARE FORCED TO PARTICIPATE IN PRODUCT PROMOTIONS IN WHICH THEY MUST RESELL PURCHASED PRODUCTS AT PRICES UNSATISFACTORY TO THEM OFFICIALS OF LITTLE CAESAR HEADED BY DETROIT TIGERS OWNER MICHAEL ILITCH DIDN'T RESPOND TO REQUESTS FOR COMMENT STATE LAW OFFICIALS IN NEW YORK BACK PROPOSED CURBS ON FRANCHISERS AT A STATE ASSEMBLY COMMITTEE HEARING THIS MONTH THE STATE LAW DEPARTMENT WHICH THE STATE ATTORNEY GENERAL HEADS ENDORSED SEVERAL PROPOSED BILLS THAT WOULD GIVE INCREASED PROTECTION TO FRANCHISEES THE ENDORSEMENT ADDS CREDIBILITY TO FRANCHISEES' ARGUMENTS AND GREATLY INCREASES THE CHANCES THAT NEW YORK WILL ENACT ONE OR MORE OF THE MEASURES ACCORDING TO ATTORNEYS ON BOTH SIDES OF THE ISSUE THEY SAY BILLS THAT HAD SEEMED TO BE GOING NOWHERE ARE NOW CERTAIN TO GET MAJOR ATTENTION IN THE LEGISLATURE AMONG OTHER THINGS THE PROPOSED BILLS WOULD BAR FRANCHISERS FROM REFUSING TO RENEW EXPIRING FRANCHISE CONTRACTS EXCEPT FOR GOOD CAUSE ALICE MCINERNEY AN ASSISTANT ATTORNEY GENERAL TESTIFIED THAT UNDER CURRENT LAW AN UNSCRUPULOUS FRANCHISER MAY WELL CHOOSE NOT TO RENEW BUT RATHER TO REAP THE FRUIT OF THE FRANCHISEE'S LABORS AND FINANCIAL INVESTMENT BY TAKING OVER A SUCCESSFUL UNIT IN 1980 THE INFLUENTIAL LAW DEPARTMENT LED NEW YORK TO ENACT WHAT NOW IS CONSIDERED THE TOUGHEST STATE FRANCHISEDISCLOSURE LAW IN THE US BRIEFS THE HOSPITALITY FRANCHISE SYSTEMS INC UNIT THAT FRANCHISES HOWARD JOHNSON MOTELS OFFERS ITS FIRST INTERESTFREE LOANS FOR PROPERTY RENOVATIONS BY FRANCHISEES PREPARING TO STEP UP LOBBYING EFFORTS THE AMERICAN FRANCHISEE ASSOCIATION SAYS IT PROVIDED ADVOCACY TRAINING TO NEARLY 100 FRANCHISEES AT A MEETING IN WASHINGTON THIS MONTH 9309300115 930930 BUSINESS BRIEF FIRST BANK SYSTEM MOVING INTO ILLINOIS AGREES TO PURCHASE BOULEVARD BANCORP MINNEAPOLIS FIRST BANK SYSTEM INC AGREED TO ACQUIRE BOULEVARD BANCORP INC FOR STOCK VALUED AT ABOUT 217 MILLION IN A MOVE THAT MARKS THE REGIONAL BANK HOLDING CONCERN'S ENTRY INTO THE ILLINOIS BANKING MARKET UNDER THE PACT BOULEVARD HOLDERS WILL RECEIVE 08132 SHARE OF FIRST BANK STOCK FOR EACH BOULEVARD SHARE HELD IN LATE NEW YORK STOCK EXCHANGE TRADING FIRST BANK SHARES WERE UP 50 CENTS AT 33375 AT THAT PRICE THE EXCHANGE RATIO WOULD PROVIDE BOULEVARD HOLDERS WITH STOCK CURRENTLY VALUED AT 2714 OR MORE THAN TWICE ITS JUNE 30 BOOK VALUE OF 1304 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BOULEVARD CLOSED AT 2350 UP 25 CENTS SHARES OF BOULEVARD A CHICAGO BANK HOLDING CONCERN HAD BEEN TRADING AT AROUND 20 BUT MOVED HIGHER AFTER THE COMPANY DISCLOSED IN MIDAUGUST THAT IT HAD RETAINED GOLDMAN SACHS & CO TO ASSIST IT IN EXPLORING MERGER OR SALE POSSIBILITIES BOULEVARD WITH ASSETS OF ABOUT 15 BILLION IS 51OWNED BY MIAMI CORP A PRIVATE INVESTMENT CONCERN WHICH REPRESENTS THE INTERESTS OF THE MCCORMICK FAMILY FIRST BANK WITH ASSETS OF 256 BILLION HAS OPERATIONS IN MINNESOTA COLORADO THE DAKOTAS MONTANA AND WISCONSIN IT SAID IT WILL ISSUE ABOUT 65 MILLION COMMON SHARES TO EFFECT THE PURCHASE BUT INTENDS TO REPURCHASE A LIKE AMOUNT OF ITS STOCK WITHIN 9 DEAL'S CLOSING THAT UNUSUAL MOVE MEANS THE ACQUISITION WILL BE ACCOUNTED FOR UNDER THE PURCHASE METHOD OF ACCOUNTING FIRST BANK SAID IT EXPECTS THE ACQUISITION TO BOOST ITS EARNINGS BY SIX CENTS A SHARE IN 1994 AND BY 11 CENTS A SHARE IN 1995 FIRST BANK SAID IT EXPECTS TO CLOSE THE TRANSACTION IN THE SECOND QUARTER OF 1994 FIRST BANK CHIEF EXECUTIVE JOHN F GRUNDHOFER CALLED THE PLANNED ACQUISITION A GOOD OPPORTUNITY THAT WILL ESTABLISH US IN MARKETS WITH EXCELLENT GROWTH AND DEMOGRAPHIC CHARACTERISTICS BOULEVARD'S FOCUS ON SMALL AND MIDDLEMARKET LENDING COMPLEMENTS FIRST BANK'S STRATEGIES HE ADDED BOULEVARD SUSPENDED ITS DIVIDEND IN LATE 1990 AFTER ENCOUNTERING PROBLEMS WITH NONPERFORMING LOANS IT RECENTLY RESUMED PAYING A QUARTERLY DIVIDEND CITING ITS STRENGTHENED BALANCE SHEET 9309300114 930930 MARKETING & MEDIA NOTED TELEVISION REUTERS HOLDINGS PLC SAID IT LAUNCHED REUTER REPORTS A TELEVISION SERVICE OF NATIONAL INTERNATIONAL AND BUSINESS NEWS FOR LOCAL US STATIONS AVAILABLE NOV 1 9309300113 930930 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 3 3/16 LOW 3 1/4 BID 3 5/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 318 120 TO 239 DAYS 324 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 318 30 DAYS 318 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 259 TWO MONTHS 261 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 306 ONE MONTH 317 THREE MONTHS 320 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 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY 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 666 60 DAYS 673 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 661 60 DAYS 671 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 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 9309300112 930930 LETTERS TO THE EDITOR DIVERSITY SHOULD RULE THE AIRWAVES JOHN LOCKE JOHN STUART MILL AND OTHER POLITICAL PHILOSOPHERS CITED DIVERSITY OF VIEWPOINT AS THE PRIMARY GOAL OF FREEDOM OF EXPRESSION WITH A MARKETPLACE OF IDEAS THEY REASONED SUCCESS IN THE QUEST FOR TRUTH WOULD BE ACHIEVED CONTRARY TO YOUR SEPT 1 EDITORIAL THE HUSH RUSH LAW A REIMPOSED FAIRNESS DOCTRINE OBLIGATING BROADCASTERS TO PRESENT CONFLICTING VIEWS ON CONTROVERSIAL ISSUES OF PUBLIC IMPORTANCE AIDS IN THE QUEST FOR A TRUE DIVERSITY OF THOUGHT ON THE AIRWAVES FROM ITS INCEPTION IN 1949 TO ITS DEMISE IN 1987 BY A REAGAN ADMINISTRATIONDOMINATED FEDERAL COMMUNICATIONS COMMISSION THE FAIRNESS DOCTRINE SERVED AS A REASONABLE REQUIREMENT OF A BROADCAST LICENSEE IT DID NOT AS YOU INCORRECTLY STATED REQUIRE BROADCASTERS TO PROVIDE EQUAL TIME TO ALL SIDES OF CONTROVERSIAL ISSUES WHAT IT DID WAS PROVIDE REASONABLE OPPORTUNITY TO CITIZENS TO PRESENT CONFLICTING VIEWS ON A PARTICULAR CONTROVERSIAL ISSUE SO IF A BROADCAST LICENSEE EDITORIALIZES IN FAVOR OF A NUCLEAR POWER PLANT TO BE BUILT IN HIS COMMUNITY NOT EVERY OPPONENT IS GUARANTEED EQUAL AIR TIME DESPITE THE ANECDOTAL EVIDENCE CITED THE DENIAL OF A LICENSE RENEWAL FOR FAIRNESS DOCTRINE VIOLATIONS WAS A RARE EVENT WHAT THE FAIRNESS DOCTRINE DOES IS TO ENSURE RESPONSIBLE REPORTING SURE PRESIDENT KENNEDY'S FCC MAY HAVE TRIED TO HARASS RIGHTWING BROADCASTERS BY THREATENING TO REVOKE THEIR LICENSES BUT AS THE COURT CASES OF THE TIME SHOW SUCH COMMENTATORS OFTEN VICIOUSLY ATTACKED INDIVIDUALS BASED ON POLITICAL AFFILIATIONS RACE AND/OR RELIGION THE ATTACKED PARTY DESERVED TIME TO RESPOND I WOULD THINK RUSH LIMBAUGH WOULD RELISH THE CHANCE TO START A RUNNING DEBATE WITH SOMEONE WITH AN OPPOSING VIEWPOINT HOW CAN A TALK SHOW THAT OPENLY INVITES CALLERS WITH OPPOSING VIEWPOINTS THAT EVEN DEVOTES WHOLE BROADCAST SESSIONS TO THIS END BE CONSTRUED AS NOT PRESENTING BOTH SIDES OF AN ARGUMENT MR LIMBAUGH HAS SAID HE CANNOT ARGUE AGAINST SOMETHING WITHOUT PRESENTING THE OPPONENT'S IDEA FIRST I LISTEN TO HIM TO HEAR CONSERVATIVE VIEWPOINTS CONSPICUOUSLY IGNORED BY THE MAINSTREAM MEDIA IF DEMOCRATIC CONGRESSMEN ARE CONVINCED THAT SHOWS LIKE HIS FOSTER A RABID ANTICONGRESS SENTIMENT LET ME ASSURE THEM THAT I WAS RABIDLY ANTICONGRESS BEFORE RUSH HIT THE AIRWAVES IF THE DEMOCRATS IN CONGRESS PERSIST IN SUPPRESSING THE CONSERVATIVE BROADCAST MEDIA THEY EVIDENTLY FEAR FURTHER SCRUTINY OF THEIR PROFLIGATE TAX AND SPEND POLICIES IF THE LIBERAL MEDIA CANNOT RETAIN A LARGE AUDIENCE MAYBE THE AUDIENCE DOES NOT LIKE WHAT IT HEARS ISN'T IT INTERESTING THAT FREE MARKET FORCES ARE ALLOWED TO RULE EVERYTHING ABOUT RADIO BROADCASTS EXCEPT PROGRAM CONTENT IF LISTENERS WANT TO LISTEN TO SAY HOWARD STERN SHOULDN'T THE FREE MARKET DECIDE THIS RATHER THAN A CAST OF POLITICALLY APPOINTED TECHNOCRATS IN WASHINGTON HOWEVER I FEEL THAT YOU WERE DEAD WRONG ABOUT CONSERVATISM AND TALK SHOW HOSTS THE INCREASE IN CONSERVATIVE HOSTS HAS MORE TO DO WITH THE SEARCH FOR THE NEXT RUSH LIMBAUGH THAN WITH THE HOSTS' ACTUAL PERFORMANCES TO CALL PAT BUCHANAN OR G GORDON LIDDY POPULAR NATIONAL RADIO HOSTS IS WRONG MR LIDDY'S ONLY RATINGS SUCCESS SO FAR HAS BEEN IN HIS HOME MARKET OF WASHINGTON MR BUCHANAN IS NOT EVEN HEARD IN MOST MAJOR MARKETS INCLUDING NEW YORK LOS ANGELES AND CHICAGO AND GENE BURNS DOES NOT CONSIDER HIMSELF A CONSERVATIVE BUT A LIBERTARIAN YOU MISTAKENLY SUGGEST THAT CONGRESS'S EFFORT TO REVIVE THE FAIRNESS DOCTRINE IS AIMED AT THE LIMBAUGH PHENOMENON ACTUALLY CONGRESS HAS BEEN TRYING TO REVIVE IT EVER SINCE ITS 1987 REPEAL BILLS PASSED BOTH HOUSES TWICE THE FIRST WAS VETOED BY PRESIDENT REAGAN THE SECOND WAS DROPPED IN CONFERENCE AFTER PRESIDENT BUSH'S VETO THREAT THE DOCTRINE WILL NOT HUSH RUSH ON THE CONTRARY IT REQUIRES STATIONS TO COVER CONTROVERSIAL ISSUES OF PUBLIC IMPORTANCE A REQUIREMENT RUSH'S SHOW WILL HELP BROADCASTERS FILL DOES IT SURPRISE ANYONE THAT LIBERALS PARTICULARLY THOSE IN CONGRESS WANT TO HUSH FLUSH OR CRUSH RUSH THE LEFT'S PERSPECTIVE TYPICALLY COMES ACROSS STRONG AND CLEAR IN MAGAZINES NEWSPAPERS CARTOONS AND TV SITCOMS CONSERVATIVES ARE INCESSANTLY SUBJECTED TO LIBERAL PROPAGANDA HURLED AT THEM BY THE MEDIA NOW FINALLY A POWERFUL CONSERVATIVE VOICE FROM THE POLITICAL WILDERNESS EMERGES ONE THAT SPEAKS THE TRUTH SOMETIMES EXAGGERATES BUT REPRESENTS MILLIONS OF US WHO CAN'T COMMUNICATE AS PRECISELY THE FACTS THAT CHALLENGE LIBERAL POSITIONS THE 20 MILLION LISTENERS RUSH LIMBAUGH HAS ACQUIRED SO QUICKLY REPRESENT THE PENTUP DEMAND FOR FAIR REPRESENTATION OF OUR POLITICAL SOCIAL AND MORAL PERSPECTIVES MY BROADCAST MANAGEMENT CAREER WAS DESTROYED AFTER BEING ACCUSED OF VIOLATING THE SOCALLED FAIRNESS DOCTRINE ON 22 COUNTS PLUS CONSPIRACY KREM AMFMTV CASE FOLLOWING A NEAR FOUR YEAR INQUISITION DURING WHICH THENREP NOWSPEAKER TOM FOLEY OFFERED NO HELP WHILE THE FCC SEARCHED FOR THE TINIEST BIT OF ROTTEN MEAT THE STATION LICENSES WERE RETURNED AFTER BEING FIRED I ASKED ONE OF THE FCC SLEUTHS DO YOU HAVE ANY IDEA WHAT ALL THAT JAZZ DID TO MY STAFF AND ME HE REPLIED WELL WE DIDN'T FIND ANYTHING DID WE IF MR LIMBAUGH IS SHUT OFF IT WILL MAKE THE DEMOCRAT MAJORITY HAPPY THEN THE WORLD'S MOST EXCLUSIVE CLUB CAN GO AFTER PRINT MEDIA TOO WE OUT ACROSS THE FRUITED PLAIN AGREE WITH OPPOSITION TO THE FAIRNESS DOCTRINE ESPECIALLY WHEN USED TO MUZZLE ANY OF THE RADIO TALK SHOWS I AM A LAWYER A DEMOCRAT SUPPORTER OF PRESIDENT CLINTON AND TEACHER OF CONSTITUTIONAL LAW AT SANTA CLARA UNIVERSITY I LISTEN TO SEVERAL RADIO TALK SHOWS AND STATIONS OFFERING DIVERSE POLITICAL POSITIONS HOWEVER RUSH LIMBAUGH IS SPECIAL HE STIRS THE POT WITH WIT AND COMMON SENSE TWO RARE COMMODITIES THESE DAYS I ALSO WATCH THE TV SHOW AND I HAVE READ HIS BOOK HE IS ABLE TO CAUSE MY RELATIVES WORK ASSOCIATES AND THE COFFEE SHOP WAITRESS TO THINK AND ARGUE OPENLY AND PASSIONATELY ABOUT PUBLIC POLICY ISSUES SUCH AS THE NATIONAL DEFICIT FEMINISM HOMELESSNESS PUBLIC EDUCATION MONETARY SUPPLY AND TAXES THE REPUBLIC IS STRONGER FOR TALK RADIO MAY RUSH LIMBAUGH THE GODZILLA OF TALK RADIO CONTINUE TO CONTRIBUTE TO THE MARKETPLACE OF IDEAS WITHOUT GOVERNMENT RESTRICTION OR POLITICAL REPRESSION 9309300111 930930 NIKKO SECURITIES UNIT IS FINED BY BIG BOARD FOR VIOLATIONS OF RULES NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT FINED NIKKO SECURITIES CO INTERNATIONAL 250000 FOR VIOLATIONS OF EXCHANGE RULES THE BIG BOARD ALSO FORMALLY CENSURED NIKKO FOR PERMITTING EMPLOYEES TO PERFORM DUTIES FOR WHICH THEY WEREN'T REGISTERED THE SECOND TIME IN THREE YEARS THAT NIKKO HAS BEEN DISCIPLINED FOR VIOLATING THE EXCHANGE'S REGISTRATION RULES NIKKO A NEW YORK UNIT OF THE JAPANESE BROKERAGE FIRM NIKKO SECURITIES CO CONSENTED TO THE FINE WITHOUT ADMITTING OR DENYING GUILT A NIKKO SPOKESWOMAN SAID IT IS CONSTRAINED FROM COMMENTING UNDER TERMS OF THE SETTLEMENT THE NYSE SAID THE FIRM AGREED TO RETAIN AN OUTSIDE CONSULTANT TO REVIEW THE FIRM'S PROCEDURES RELATING TO REGISTRATION REQUIREMENTS TO RECOMMEND A COMPLIANCE SYSTEM AND SUBMIT A WRITTEN REPORT TO THE EXCHANGE FROM NOVEMBER 1989 TO JANUARY 1992 THE NEW YORK STOCK EXCHANGE SAID IT FOUND REPEATED FAILURES BY NIKKO TO REGISTER AT LEAST 14 EMPLOYEES INCLUDING THE FIRM'S CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER FIVE BRANCH OFFICE MANAGERS AND THREE DEPARTMENT HEADS THE EXCHANGE FINED NIKKO 5000 IN 1991 FOR FAILING TO REGISTER ABOUT 20 REPRESENTATIVES AND TRADERS IN ITS FIXEDINCOME DEPARTMENT DURING A 15MONTH PERIOD IN 1988 AND 1989 THE SECURITIES FIRM DIDN'T ADMIT OR DENY GUILT AT THAT TIME THE BIG BOARD SAID IT DISCIPLINED THE FIRM AGAIN BECAUSE NIKKO CONTINUED TO ALLOW REPRESENTATIVES TO PERFORM JOBS THAT REQUIRED REGISTRATION THE CURRENT DISCIPLINARY ACTION STEMS FROM ACTIONS MOSTLY OUTSIDE THE FIXEDINCOME GROUP 9309300110 930930 WHO'S NEWS WABAN INC NAMES SHERMAN PRESIDENT OF HOMEBASE UNIT NATICK MASS WABAN INC NAMED ALLAN SHERMAN 48 YEARS OLD PRESIDENT OF ITS HOMEBASE UNIT SUCCEEDING WILLIAM PATTERSON WHO RESIGNED MURRAY WACHTENHEIM PREVIOUSLY EXECUTIVE VICE PRESIDENT FINANCE OF HOMEBASE WAS NAMED EXECUTIVE VICE PRESIDENT STORE OPERATIONS SUCCEEDING HAROLD COMPTON WHO ALSO RESIGNED CATHERINE WOODS A SPOKESWOMAN FOR THE WAREHOUSE MERCHANDISER SAID BOTH MR PATTERSON AND MR COMPTON WERE ASKED TO LEAVE THE COMPANY NEITHER COULD BE REACHED FOR COMMENT MS WOODS SAID THE TWO EXECUTIVES DISPLAYED EFFORTS THAT WERE HEADED IN THE RIGHT DIRECTION BUT THEY WEREN'T EXECUTED AS QUICKLY OR EFFECTIVELY AS EXPECTED SAMESTORE SALES FOR WABAN WHICH IS MADE UP OF HOMEBASE AND BJ'S WHOLESALE CLUB HAVE DECLINED FROM YEAREARLIER LEVELS IN RECENT MONTHS MR SHERMAN WAS MOST RECENTLY PRESIDENT OF BJ'S WHOLESALE JACK NUGENT MOST RECENTLY SENIOR VICE PRESIDENT DIRECTOR OF STORE OPERATIONS FOR BJ'S WAS NAMED PRESIDENT OF THAT UNIT SUCCEEDING MR SHERMAN MS WOODS SAID HOMEBASE CONTRIBUTED ALMOST HALF OF THE COMPANY'S REVENUE FOR ITS FISCAL YEAR ENDED JAN 30 BUT SHE WASN'T ABLE TO ESTIMATE THE PERCENTAGE OF ITS CONTRIBUTION TO THE COMPANY'S EARNINGS IT CONTRIBUTED ABOUT 57 OF THE COMPANY'S OPERATING INCOME LAST YEAR 9309300109 930930 BUSINESS BRIEF SAFECARD SERVICES INC FORMER CHAIRMAN FILES SUIT AGAINST COMPANY'S LAWYER PETER HALMOS FORMER CHAIRMAN AND CHIEF EXECUTIVE OF SAFECARD SERVICES INC CHEYENNE WYO SAID HE FILED SUIT IN STATE COURT IN MIAMI ACCUSING SAFECARD'S INHOUSE COUNSEL BARRY I TILLIS OF LEGAL MALPRACTICE AND BREACH OF FIDUCIARY DUTY AMONG OTHER CHARGES MR HALMOS' SUIT CHARGES THAT MR TILLIS WHILE SERVING AS COUNSEL BOTH TO HIM AND TO SAFECARD SUPPLIED CONFIDENTIAL INFORMATION ABOUT MR HALMOS TO THE COMPANY AND SCHEMED WITH THE CREDITCARD PROTECTION COMPANY TO USE THE INFORMATION TO INTIMIDATE HIM MR TILLIS COULDN'T BE REACHED FOR COMMENT A SAFECARD SPOKESMAN SAID THE COMPANY HADN'T SEEN A COPY OF THE COMPLAINT AND COULDN'T COMMENT MR HALMOS IS ALSO PURSUING OTHER SUITS INVOLVING THE COMPANY AND SAFECARD HAS FILED ITS OWN SUIT AGAINST MR HALMOS ACCUSING HIM OF BREACHING HIS FIDUCIARY DUTIES AMONG OTHER CLAIMS 9309300108 930924 WORLD BUSINESS A SPECIAL REPORT REWARDS AND PITFALLS COUNTRY BY COUNTRY A STATISTICAL LOOK AT EMERGING MARKETS COMPILED BY JARED SANDBERG ECONOMIC FIGURES ARE AS OF JUNE 1993 UNLESS NOTED STOCKMARKET FIGURES ARE AS OF AUGUST 1993 UNLESS NOTED STOCKMARKET RETURNS ARE IN TERMS OF US DOLLARS 9309300107 930930 COMMODITIES OIL FUTURES RISE ON OPEC'S QUOTA AGREEMENT AS TRADERS EXPECT PRODUCERS TO STOP CHEATING BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES SOARED YESTERDAY ON NEWS THAT MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAD STRUCK A PRODUCTIONSHARING AGREEMENT AFTER FIVE DAYS OF NEGOTIATING CRUDE OIL FOR NOVEMBER DELIVERY CLIMBED BY 71 CENTS A BARREL TO 1867 A BARREL HEATING OIL FOR OCTOBER RAN UP BY 198 CENTS A GALLON TO 5542 CENTS AND GASOLINE ROSE BY 157 CENTS TO 5068 CENTS A GALLON TRADING VOLUME HIT RECORD LEVELS IN THE CRUDE OIL PIT AT THE NEW YORK MERCANTILE EXCHANGE AS TRADERS WHO HAD REMAINED ON THE SIDELINES AWAITING THE MEETING'S OUTCOME RACED IN TO BUY IN THE FACE OF THE BULLISH NEWS FOR THE FIRST TIME IN A LONG TIME OPEC REALIZED WHAT IT NEEDED TO DO AND STEPPED UP TO THE PLATE AND DID IT SAID LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION IN NEW YORK THE QUOTAS ARE REPRESENTATIVE OF WHAT'S BEEN HAPPENING IN THE REAL WORLD MARKET CONFIDENCE HAS BEEN RESTORED OPEC MINISTERS AGREED TO INCREASE THE GROUP'S OVERALL PRODUCTION CEILING BY ONE MILLION BARRELS A DAY TO 245 MILLION BARRELS COVERING A SIXMONTH PERIOD A CHANGE FROM OPEC'S TYPICAL QUARTERLY BASIS WITHIN THIS FRAMEWORK INDIVIDUAL QUOTAS WERE DOLED OUT THE SAUDIS AGREED TO FREEZE THEIR OUTPUT WHILE THE KUWAITIS SAID YES TO A SHADE LESS THAN THEIR REQUESTED ALLOTMENT MARKET PARTICIPANTS SAY THEY ARE HEARTENED BECAUSE UNDER THE NEW QUOTAS MOST OF THE OPEC PRODUCERS ARE ALLOWED TO PUMP AT CLOSE TO THEIR MAXIMUM CAPACITY THAT SHOULD FORESTALL MOST CHEATING ONLY SAUDI ARABIA HAS THE CAPABILITY TO PUMP AGGRESSIVELY BEYOND ITS LIMIT ANALYSTS SAY AND THE SAUDIS ARE UNLIKELY TO UNDO THE AGREEMENT MR GOLDSTEIN SAID DESPITE CLAIMS BY IRAN THAT IT CAN PRODUCE FOUR MILLION BARRELS DAILY MOST MARKET ANALYSTS DON'T THINK IRAN CAN PUT OUT MUCH MORE THAN ITS NEW QUOTA OF 36 MILLION BARRELS DAILY ON A SUSTAINED BASIS NIGERIA CAN PROBABLY PRODUCE BEYOND ITS QUOTA OF 186 MILLION BARRELS A DAY BUT NOT BY ENOUGH TO COMPLETELY UNSETTLE THE OVERALL PRODUCTION CEILING DESPITE THE BUYING EUPHORIA DISPLAYED IN THE MARKETPLACE SOME PARTICIPANTS REMAIN GUARDED ABOUT WHAT THE AGREEMENT MEANS TO PRICES THEY CLAIM THAT THE NEW CEILING DOESN'T REALLY CHANGE SUPPLY AND DEMAND FUNDAMENTALS DEMAND FOR OPEC CRUDE IS SEEN BY SOME ANALYSTS AT NO MORE THAN 243 MILLION BARRELS A DAY DURING THE FOURTH QUARTER OIL INVENTORIES HAVE BEEN GROWING BY ONE MILLION BARRELS A DAY IN RECENT WEEKS AS TRADERS SNAPPED UP LOWPRICED OIL SUPPLIES ANOTHER NEGATIVE AND BY DECEMBER NORTH SEA PRODUCTION WILL HAVE GROWN BY ONE MILLION BARRELS A DAY OVER YEAREARLIER LEVELS I'M HAVING REAL TROUBLE BUYING OPEC'S NEW NUMBERS SAYS PETER GIGNOUX MANAGER OF THE PETROLEUM DESK FOR SMITH BARNEY SHEARSON LTD IN LONDON I'M GOING TO WAIT FOR THE DUST TO SETTLE BEFORE I BECOME EUPHORIC IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES SKIDDED IN MOSTLY TECHNICAL TRADING IGNORING THE STRONG RISE IN CRUDEOIL PRICES THE ACTIVE DECEMBER CONTRACT FELL 260 TO 35470 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE THE YELLOW METAL A TRADITIONAL HEDGE AGAINST INFLATION WAS AS LOW AS 35220 BEFORE A LATESESSION RALLY RETRACED SOME OF THE DAY'S LOSSES TRADERS SAID GOLD CONTINUES TO TRADE IN A RANGE BETWEEN 350 TO 360 IN THE ABSENCE OF FURTHER NEWS ABOUT THE POLITICAL STANDOFF IN MOSCOW WHEN THE PROBLEM IS RESOLVED IN RUSSIA MY GUESS IS THAT WE'LL SEE A KNEEJERK REACTION DOWNWARD TO PERHAPS 350 SAID GEORGE MILLINGSTANLEY SENIOR PRECIOUS METALS ANALYST WITH LEHMAN BROTHERS BUT I'LL BE SURPRISED IF IT GOES BELOW THAT GOLD DECLINES YESTEDAY WERE PARTIALLY DUE TO A TECHNICAL SELLOFF IN SILVER TRADERS AND ANALYSTS SAID NEW YORKBASED COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY SOLD SILVER HEAVILY AT THE OPENING IN NEW YORK BY SESSION'S END THE ACTIVE DECEMBER CONTRACT SETTLED 65 CENTS LOWER AT 4035 CENTS AN OUNCE ON THE COMEX SILVER WHICH HAS RELATIVELY BROAD INDUSTRIAL APPLICATIONS HAS BEEN HIT RECENTLY BY REPORTS OF CONTINUED ECONOMIC STAGNATION IN JAPAN AND OF ANEMIC GROWTH IN EUROPE GRAINS AND SOYBEANS CORN AND SOYBEAN FUTURES PRICES CONTINUED TO SLIP AS METEOROLOGISTS LOWERED THE CHANCES FOR ANY WIDESPREAD KILLING FROST IN THE MIDWEST THIS WEEK FREEZING TEMPERATURES WERE LIMITED TO POCKETS IN MINNESOTA AND NORTHWEST IOWA YESTERDAY MORNING IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY FELL 425 CENTS A BUSHEL TO SETTLE AT 62725 A BUSHEL THE DECEMBER CORN CONTRACT DROPPED 25 CENTS A BUSHEL TO SETTLE AT 24075 A BUSHEL SOME FROST IS EXPECTED ACROSS PARTS OF THE MIDWEST THIS MORNING AND NEXT WEEK THE CORN AND SOYBEAN HARVESTING SEASON WON'T MOVE INTO HIGH GEAR UNTIL FREEZING TEMPERATURES KILL THE CROPS COFFEE COFFEE FUTURES PRICES CONTINUED TO TUMBLE IN NEW YORK SETTLING AT 7565 CENTS A POUND OFF 175 CENTS DESPITE A NEW PRODUCER EXPORTRETENTION PLAN LAST WEEK IN BRAZIL 28 PRODUCER NATIONS AGREED TO RETAIN UP TO 20 OF THEIR RESPECTIVE EXPORTS BEGINNING FRIDAY IN AN EFFORT TO RAISE PRICES THE MARKET HAS ALREADY FACTORED IN THE RETENTION PLAN AND NOW WANTS PROOF POSITIVE THAT PRODUCERS WILL LIVE UP TO THEIR WORD SAID JUDY GANES A MERRILL LYNCH ANALYST IT APPEARS THAT MANY TRADERS ARE SKEPTICAL THE DECEMBER CONTRACT HAS SLID ON EACH TRADING DAY THIS WEEK WITH A BIG 360 CENTSAPOUND DROP MONDAY AND A 010 CENT DECLINE TUESDAY 9309300106 930930 INTERNATIONAL SALE OF PUBS SLATED BY GRAND METROPOLITAN SCOTTISH & NEWCASTLE TO PAY 9414 MILLION TAKE ON DEBT FOR 1654 SITES BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON GRAND METROPOLITAN PLC CONTINUING ITS STRATEGY OF FOCUSING ON INTERNATIONAL BRANDS AGREED TO SELL ITS CHAIN OF 1654 BRITISH PUBS TO SCOTTISH & NEWCASTLE PLC FOR 622 MILLION 9414 MILLION AND THE ASSUMPTION OF SOME DEBT THE SALE WILL ENABLE GRAND MET WHICH OWNS SUCH FAMOUS BRANDS AS BURGER KING RESTAURANTS HAAGENDAZS ICE CREAM AND SMIRNOFF VODKA TO SHARPLY REDUCE ITS DEBT AND QUIT A BUSINESS THAT ANALYSTS SAY HAS LIMITED GROWTH POTENTIAL IN ADDITION TO THE CASH PURCHASE PRICE SCOTTISH & NEWCASTLE SAID IT WILL ASSUME SOME 82 MILLION OF GRAND MET DEBT RELATED TO CHEF & BREWER GRAND MET SAID THE SALE WILL REDUCE ITS DEBTTOEQUITY RATIO TO ABOUT 60 FROM 80 IN A RELATED MOVE GRAND MET IS SELLING CERTAIN PUB PROPERTY INTERESTS OWNED BY ITS 50 JOINT VENTURE INNTREPRENEUR ESTATES FOR 94 MILLION THE BUYER IS A UNIT OF MORGAN GRENFELL & CO SCOTTISH & NEWCASTLE'S INVESTMENT BANKER WHICH WILL THEN DISPOSE OF THESE AND OTHER PUBS TO HELP THE BREWER COMPLY WITH PUBOWNERSHIP LIMITS IN BRITAIN SCOTTISH & NEWSCASTLE WHICH ALSO WILL HAVE TO SELL SOME OF ITS EXISTING PUBS WILL OPERATE ABOUT 2700 PUBS IN THE END CURRENTLY IT HAS ABOUT 1800 SCOTTISH & NEWCASTLE SAID THE CHEF & BREWER PUBS WHICH GO BY VARIOUS NAMES IN LOCAL MARKETS WILL STRENGTHEN ITS BREWING AND PUB BUSINESS BY EXPANDING ITS GEOGRAPHICAL REACH THROUGH THE UK SCOTTISH & NEWCASTLE SAID IT WILL RAISE 405 MILLION TOWARD THE PURCHASE WITH A RIGHTS ISSUE OF NEW SHARES WITH THE BALANCE OF THE CASH MET FROM EXISTING RESOURCES AND BANK BORROWINGS THE COMPANY WILL OFFER SHAREHOLDERS ONE NEW SHARE FOR EVERY FOUR ALREADY OWNED AT 390 PENCE A SHARE IN TWO INSTALLMENTS GRAND MET SEVERAL YEARS AGO SOLD ITS BREWING OPERATION AND ANALYSTS SAY ITS DECISION TO LEAVE THE BUSINESS IS A GOOD ONE IN LIGHT OF THE COMPETITION RULES TO GRAND MET'S CREDIT THEY SAW IT COMING LONG BEFORE ANYONE ELSE SAYS COLIN DAVIES AN ANALYST AT GOLDMAN SACHS INTERNATIONAL THERE IS GROSS OVERCAPACITY IN THE INDUSTRY I THINK AT LEAST 10000 PUBS WILL DISAPPEARING OVER THE NEXT FIVE YEARS OUT OF ROUGHLY ABOUT 70000 NOW THE SALE IS THE LATEST IN A FLURRY OF ANNOUNCEMENTS FROM GRAND MET THE COMPANY LAST WEEK NAMED GEORGE BULL A TOP MARKETING EXECUTIVE AS ITS NEW CHIEF EXECUTIVE OFFICER PASSING OVER CHIEF OPERATING OFFICER AND HEIRAPPARENT IAN MARTIN WHOSE BACKGROUND IS IN FINANCE ADDITIONALLY GRAND MET SAID ON MONDAY THAT IT WILL TAKE RESTRUCTURING CHARGES RELATED TO THE GREEN GIANT DIVISION OF ITS PILLSBURY UNIT ITS PEARLE EYECARE STORES AND OTHER OPERATIONS GRAND MET'S HEUBLEIN INC DRINKS UNIT ALSO ANNOUNCED THIS WEEK THE PURCHASE OF THE GLEN ELLEN PROPRIETOR'S RESERVE & MG VALLEJO HARVEST SELECT VARIETAL WINE BRANDS FROM BENZINGER FAMILY RANCH ASSOCIATES OF GLEN ELLEN CALIF 9309300105 930930 LEISURE & ARTS ON FILM ALTMAN'S IN A CLASS BY HIMSELF BY JULIE SALAMON A FEW HOURS AFTER I SAW ROBERT ALTMAN'S EXTRAORDINARY NEW MOVIE SHORT CUTS I RECEIVED A TELEPHONE CALL FROM THE FRIEND WHO'D SEEN IT WITH ME THIS NORMALLY SOBER FELLOW WAS ALL JAZZED UP FROM THE EXPERIENCE AS HE TRIED TO EXPLAIN HIS REACTIONS TO THE MOVIE HE KEPT STOPPING AND STARTING FINALLY HE SAID I GUESS THERE'S ONLY ONE THING TO SAY THERE'S ALTMAN AND THEN THERE'S EVERYONE ELSE AS I THOUGHT ABOUT IT I REALIZED THAT MY FRIEND'S PROCLAMATION NEATLY EXPLAINED WHY I WAS FINDING IT SO DIFFICULT TO ORGANIZE MY OWN THOUGHTS ABOUT SHORT CUTS THE MOVIE SIMPLY FALLS OUTSIDE THE USUAL CLASSIFICATIONS IT'S LIKE SOME INTERESTING NEW HYBRID VEGETABLE THAT'S MUCH MORE DELICIOUS THAN ANY OF ITS NATURAL PARTS FAMILIAR YET EXOTIC ORDINARY YET THRILLING WITH 22 SIGNIFICANT CHARACTERS AND A 3 1/2HOUR RUNNING TIME THE MOVIE HAS THE INTENSITY OF AN EPIC HOWEVER THE BACKDROP ISN'T WAR OR SOCIAL UPHEAVAL IT IS EVERYDAY LIFE COMPRESSED AND INTENSIFIED MAYBE WHAT I'M SAYING IS THAT SHORT CUTS IS JUST A SOAP OPERA BUT A SOAP OPERA WITH SHAKESPEAREAN ASPIRATIONS THE BASIC PREMISE OF SHORT CUTS IS SIMULTANEOUSLY BANAL AND INCREDIBLE THAT IS STUFF HAPPENS SOMETIMES TO ALL OF US ALL AT ONCE THE IDEA THAT LIFE OPERATES AT RANDOM SOMETIMES WITH HAPPY RESULTS OFTEN NOT WHICH MAY SOUND LIKE A MARIJUANAINDUCED INSIGHT WHEN BALDLY STATED RUNS THROUGH ALL THE RAYMOND CARVER STORIES ON WHICH THE FILM IS BASED MR ALTMAN AND HIS COSCREENWRITER FRANK BARHYDT HAVE CAPTURED THE FEELING OF THOSE NINE STORIES AND A POEM WITHOUT BEING REALLY FAITHFUL TO THEM A FACT THAT WILL LIKELY DISTURB THE CARVER PURISTS SHORT CUTS MAY ALSO OFFEND MOVIE PURISTS BECAUSE IT ISN'T NASHVILLE MR ALTMAN'S AMAZING LOVING 1975 SATIRE ABOUT THE COUNTRY MUSIC CAPITAL AND THE PEOPLE TRYING TO MAKE THEIR DREAMS THERE MR ALTMAN HAS SET HIMSELF UP FOR THAT CRITICISM BY MODELING THE STYLE OF SHORT CUTS ON NASHVILLE WEAVING TOGETHER MANY PLOTS AND MANY CHARACTERS THAT MULTILAYERED FORM SEEMED REVOLUTIONARY WHEN NASHVILLE WAS MADE NOW IT DOESN'T BUT IT SEEMS UNFAIR TO USE NASHVILLE TO BASH ROBERT ALTMAN FOR WHAT HE'S ACCOMPLISHED HERE AND THE EXTREMELY MIXED BAG OF EXPERIENCES IT SUMS UP IN ADDITION TO NASHVILLE MR ALTMAN HAS MADE ALL KINDS OF MOVIES SOME GOOD SOME NOTSOGOOD HE'S DIRECTED MADEFORTELEVISION MOVIES HE'S DIRECTED OPERA HE'S BEEN WELCOMED IN HOLLYWOOD AND HE'S BEEN UNWELCOME BUT HE'S ALWAYS KEPT WORKING TRYING NEW THINGS SHORT CUTS IS THE WORK OF A 68YEAROLD MAN WHO'S SEEN A LOT MUCH OF IT NOT VERY NICE YOU CAN TELL MR ALTMAN THINKS THAT LOS ANGELES THE PLACE WHERE THEY LIVE IS AWFUL BESET BY NATURAL AND SPIRITUAL DECLINE HE MIGHT HAVE BEEN AMUSED BY NASHVILLE BUT HE'S APPALLED BY LOS ANGELES APPALLED ENOUGH TO WANT TO WRENCH THE CARVER STORIES OUT OF THEIR PACIFIC NORTHWEST SETTING TO SOUTHERN CALIFORNIA YOU SENSE THAT LOS ANGELES PROVIDES FOR MR ALTMAN A GEOGRAPHIC METAPHOR FOR THE WAY MODERN LIFE CORRODES THE SOUL THIS ISN'T THE SHOWBIZ LOS ANGELES THAT MR ALTMAN SO ASTUTELY SPEARED IN HIS 1992 HOLLYWOOD SATIRE THE PLAYER SHORT CUTS IS DEVOTED TO THE NONPLAYERS REGULAR PEOPLE SOME POOR SOME WELLOFF THIS MOVIE IS ABOUT THE RELATIONSHIPS BETWEEN MEN AND WOMEN WITH THE MEN GENERALLY COMING OFF BADLY ABOUT THE RELATIONSHIPS BETWEEN CHILDREN AND PARENTS ABOUT MORAL AND SEXUAL CONFUSION SHORT CUTS HAS AN ASTONISHING NATURALISM A REALLIFE AUTHENTICITY THAT REALITY TELEVISION NEVER ACHIEVES THE ACTING IS SUPERB EXCEPTIONAL IN A COUPLE OF CASES MADELEINE STOWE AND ANDIE MACDOWELL THE PLAYERS ARE SO CONVINCING THAT AT TIMES I FELT ALMOST TOO INTIMATE WITH SOME OF THE CHARACTERS THE WAY I DO IF A NEIGHBOR'S QUARREL COMES INTO MY BATHROOM THROUGH THE PIPES THERE IS FOR EXAMPLE THE SCENE IN WHICH A MAN MATTHEW MODINE WHO SUSPECTS HIS WIFE JULIANNE MOORE ONCE CHEATED ON HIM FORCES HER TO TELL HIM WHAT HE DOESN'T WANT TO HEAR THIS KIND OF REVELATION IS FILLER ON TELEVISION SOAP OPERAS BUT NOT HERE THE WIFE HAS SPILLED SOMETHING ON HER SKIRT GUESTS ARE ABOUT TO ARRIVE SO SHE'S YANKED OFF THE SKIRT WASHED IT AND IS DRYING IT WITH A HAIR DRYER THE MOMENT IS GIVEN THE ABSURD COMPLEXITY OF TRUTH THIS ANGRY CONFESSION DELIVERED BY A WOMAN STANDING HALFNAKED DIVIDED BETWEEN FURY AND SHAME AND AN INTENSE DESIRE TO BE PRESENTABLE WHEN THE COMPANY SHOWS UP EVEN IF IT MEANS LOOKING RIDICULOUS AS SHE FACES HER ANGRY HUSBAND THE FILM'S STORIES KEEP COLLIDING WITH ONE ANOTHER IN BIG WAYS AND SMALL A WAITRESS LILY TOMLIN ACCIDENTALLY HITS A SMALL BOY WITH HER CAR HE REFUSES TO TELL HER WHERE HE LIVES SO SHE CAN HELP HIM HOME SHE'S UPSET BUT WHEN SHE SEES HIM WALK AWAY SHE FIGURES HE'S ALL RIGHT AT HOME HE COLLAPSES AND GOES INTO A COMA LEADING TO ONE OF THE MOVIE'S MOST POWERFUL STORIES OF PARENTS ANDIE MACDOWELL AND BRUCE DAVISON HOLDING A VIGIL BY THEIR SERIOUSLY HURT CHILD'S BEDSIDE THE WAITRESS NEVER MEETS THEM BUT SHE KNOWS THE HUSBAND HE'S A LOCAL TV NEWS ANCHOR THE MAN WHO CLEANS THE TV ANCHOR'S POOL IS CLOSE FRIENDS WITH THE WAITRESS'S SONINLAW AND DAUGHTER THEY GO TO A JAZZ CLUB AND LISTEN TO A SINGER WHO LIVES NEXT DOOR TO THE TV ANCHOR THE SINGER'S DAUGHTER IS A CLASSICAL CELLIST OTHER CHARACTERS MEET AT A CONCERT WHERE SHE'S PERFORMING AND SO ON MR ALTMAN ESTABLISHES THE CREDIBILITY OF THESE CONNECTIONS IN THE OPENING SEQUENCE A CRAFTY CINEMATIC TOUR DE FORCE NEONLIT HELICOPTERS HOVER IN A NIGHT SKY AGAINST A NERVY OMINOUS MUSICAL BACKGROUND COMPOSED BY MARK ISHAM THE CAMERA FOCUSES ON A WHITE LIMOUSINE FROM ABOVE THEN INSIDE THE LIMO WHERE A MAN IS ISSUING A WARNING ABOUT THE INVASION OF MEDFLIES HE'S THE TV ANCHOR WITH THE LITTLE BOY AS THE LIMO DRIVES ON THE CAMERA GOES ITS OWN WAY INTRODUCING US TO OTHER CHARACTERS OTHER SITUATIONS ALL UNITED BY THE DANGER HOVERING OVERHEAD DANGER FROM THE HELICOPTERS SPEWING CHEMICALS FROM THE MEDFLIES THE CHEMICALS ARE AIMED AT KILLING AND FROM WHATEVER ELSE MIGHT BE LURKING IN THE NIGHT WHEN YOU SEE THE WAY ALL THIS HAS BEEN PUT TOGETHER YOU WILL AGREE WITH MY FRIENDTHERE'S ALTMAN AND THEN THERE'S EVERYONE ELSE VIDEO TIP BIG AMBITIONS LIKE MR ALTMAN'S PRODUCE A WIDE RANGE OF RESULTS THE SAME MAN MADE NASHVILLE AND QUINTET MASH AND A WEDDING 9309300104 930930 MARKETING & MEDIA SONY UNVEILS NEXT MINIDISC GENERATION HOPING TO HELP SPUR A LANGUID MARKET BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SONY CORP UNVEILED ITS SECONDGENERATION LINEUP OF MINIDISC PLAYERS HOPING THE SMALLER LIGHTER MODELS WILL HELP STIMULATE THE LANGUID CONSUMER ELECTRONICS MARKET AND GIVE A BOOST TO THE SLUMPING COMPANY'S FORTUNES IF A PRODUCT IS APPEALING TO CUSTOMERS' TASTES PEOPLE WILL SPEND THE MONEY DESPITE A WEAK ECONOMY SONY PRESIDENT NORIO OHGA SAID WEDNESDAY AT A NEWS CONFERENCE TOUTING THE NEW PRODUCTS BUT MR OHGA ACKNOWLEDGED THAT THE TIMING ISN'T IDEAL FOR THE NEW MACHINES ESPECIALLY IN JAPAN WE ARE HEARING ABOUT RESTRUCTURINGS WHICH MEANS PEOPLE LOSING JOBS AND THAT DISCOURAGES THEM FROM BUYING NEW PRODUCTS MR OHGA ADDED THE MINIDISC A SMALL RECORDABLE COMPACT DISK IS SONY'S BID TO REPLACE STANDARD ANALOG AUDIOCASSETTES WITH A DIGITAL RECORDING FORMAT INDUSTRY OFFICIALS SAY THE MINIDISC IS DOING BETTER THAN THE COMPETING APPROACH THE DIGITAL COMPACT CASSETTE DEVELOPED BY PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO BUT ANALYSTS SAY NEITHER PRODUCT HAS TAKEN THE MARKET BY STORM SINCE THE COMPETITION STARTED A YEAR AGO SONY'S LATEST MODELS WHICH GO ON SALE IN JAPAN BY DECEMBER AND IN THE US AND EUROPE NEXT SPRING ATTEMPT TO REMEDY SOME OF THE SHORTCOMINGS OF THE FIRST GENERATION THE NEW MODEL IS 40 SMALLER AND AT 109 OUNCES 45 LIGHTER THAN ITS PREDECESSOR THE COMPANY SAYS USING SONY'S ADVANCED LITHIUM ION RECHARGEABLE BATTERIES THE MACHINE CAN PLAY FOR AS LONG AS 2 1/2 HOURS BEFORE RECHARGING ADDING STANDARD ALKALINE BATTERIES THE MACHINE CAN PLAY FOR AS LONG AS 7 1/2 HOURS THE COMPANY SAYS THE OLD MODELS LAST A MAXIMUM OF TWO HOURS AND CAN'T USE ALKALINE BATTERIES BUT THE MODELS ARE STILL BIGGER THAN SONY'S OWN CASSETTEPLAYING WALKMAN WHICH THE MINIDISCS ARE SUPPOSED TO SUPPLANT GETTING DOWN TO THAT SIZE IS THE ULTIMATE GOAL THE KEY ISSUE WE FACE A COMPANY OFFICIAL SAID AT THE NEWS CONFERENCE BUT THAT WON'T HAPPEN HE ADDED UNTIL THE THIRD OR FOURTH GENERATION THE MINIDISC PLAYERS ARE ALSO PRICEY THE TWO NEW PORTABLE MODELS WILL SELL FOR 55000 YEN AND 75000 YEN ABOUT 525 AND 715 RESPECTIVELY ABOUT 10 CHEAPER THAN THE FIRST GENERATION BUT STILL FAR MORE EXPENSIVE THAN TAPE PLAYERS STILL SONY SAID IT WAS GETTING CRUCIAL SUPPORT FOR THE MINIDISC FROM SUPPLIERS AND CUSTOMERS THE COMPANY ALSO UNVEILED TWO CAR MINIDISC PLAYERS SONY ALSO SAID IT WAS GETTING SOLID BACKING FROM THE MUSIC INDUSTRY WITH ABOUT 1200 RECORDED TITLES NOW AVAILABLE ON THE MINIDISC FORMAT OF THOSE 750 COME FROM SONY MUSIC ENTERTAINMENT INC THE ELECTRONICS COMPANY'S RECORDING UNIT SONY OFFICIALS REMAIN UPBEAT ABOUT THE MINIDISC'S PERFORMANCE AND PROSPECTS THEY SAID THEY SHIPPED 300000 UNITS WORLDWIDE BETWEEN LAST NOVEMBER AND THIS AUGUST THEY SAY THEY STILL HOPE THE WORLDWIDE MARKET FOR MINIDISC PLAYERS WILL REACH 10 MILLION UNITS ANNUALLY BY EARLY 1996 THE MINIDISC ISN'T COMPATIBLE WITH CONVENTIONAL CDS THE STAKES ARE HIGH FOR SONY WHICH ALONG WITH THE REST OF THE JAPANESE CONSUMER ELECTRONICS INDUSTRY HAS BEEN BATTERED FOR SEVERAL YEARS BY INTENSE COMPETITION SATURATED MARKETS AND THE LACK OF A HIT PRODUCT IN AUGUST SONY FORECAST PRETAX PROFITS FOR THE FISCAL YEAR ENDING MARCH 31 OF 87 BILLION YEN 8297 MILLION DOWN 6 FROM THE YEAREARLIER RESULTS 9309300103 930930 TAXFREE FUND YIELDS ROSE IN LATEST WEEK NEW YORK YIELDS ON TAXEXEMPT MUTUAL FUNDS JUMPED IN THE LATEST WEEK WHILE YIELDS ON TAXABLE FUNDS WERE UNCHANGED IBC/DONOGHUE'S AVERAGE TAXFREE SEVENDAY COMPOUND YIELD ROSE TO 223 FROM 196 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS FOR HIGHTAXBRACKET INVESTORS THE LATEST TAXEXEMPT YIELD BEAT THE YIELD ON TAXABLE MONEY FUNDS BY AS MUCH AS ONE PERCENTAGE POINT EARNING 223 TAX FREE IS EQUIVALENT TO GETTING A TAXABLE 348 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 369 FOR SOMEONE PAYING 396 IN TAXES IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 268 IN THE LATEST WEEK WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE RISE IN TAXFREE YIELDS TO SUPPLY AND DEMAND HE SAID INVESTORS HAD PULLED MORE THAN 216 BILLION OUT OF TAXFREE FUNDS IN THE PAST TWO WEEKS AT A TIME WHEN THE SUPPLY OF TAXEXEMPT SECURITIES WAS GROWING ASSETS OF 330 TAXEXEMPT FUNDS ONE LESS THAN LAST WEEK'S TOTAL FELL BY 6541 MILLION TO 10190 BILLION ACCORDING TO MONEY FUND REPORT THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY LENGTHENED BY ONE DAY TO 69 DAYS ASSETS OF ALL TAXABLE FUNDS FELL BY 341 BILLION TO 46727 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS TOOK 225 BILLION OUT OF ASSETS WHILE INDIVIDUAL INVESTORS ACCOUNTED FOR 116 BILLION OF THE OUTFLOW FOUR INSTITUTIONAL FUNDS WERE MERGED WITH OTHER FUNDS REPORTING TO THE NEWSLETTER REDUCING THE TOTAL NUMBER OF TAXABLE FUNDS TO 618 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS 9309300102 930930 POLITICS & PEOPLE MEMO TO COLIN L POWELL RE YOUR FUTURE BY ALBERT R HUNT FIRST GENERAL CONGRATULATIONS AS YOU CLOSE AN EXTRAORDINARY 35YEAR MILITARY CAREER THIS AFTERNOON NO WASHINGTON FIGURE HAS LEFT OFFICE WITH SUCH WIDESPREAD ACCLAIM SINCE YOUR ROLE MODEL DWIGHT EISENHOWER AT 56 YOUR FUTURE LOOKS EQUALLY BRIGHT YOU HAVE A 6 MILLION BOOK CONTRACT CAN GIVE A DOZEN OR SO SPEECHES A YEAR AT 50000 A POP AND MORE THAN 40 CORPORATE BOARDS NOW ARE ACTIVELY PURSUING YOU IN A FEW SHORT YEARS YOU'LL BE A WEALTHY MAN POLITICALLY YOU'RE IN A CLASS BY YOURSELF BOTH PARTIES ARE DYING TO CLAIM YOU AGAIN THE ONLY ANALOGY IS GEN EISENHOWER IN THE LATE 1940S AND EARLY 1950S OH SURE THERE ARE A FEW CRITICS ON THE LEFT GAYS REMAIN EMBITTERED OVER YOUR ROLE THIS YEAR IN MODIFYING PRESIDENT CLINTON'S PLEDGE TO END THE BAN ON HOMOSEXUALS IN THE MILITARY ON THE RIGHT SOME MIDEAST HAWKS STILL RESENT YOUR UNWILLINGNESS TO TAKE DESERT STORM ALL THE WAY TO SADDAM HUSSEIN BUT AT THIS YEAR'S HARVARD COMMENCEMENT YOU NEUTRALIZED THE GAY PROTESTS BRILLIANTLY AND PITY THE POOR POLITICIAN WHO TRIES TO PAINT YOU AS INSUFFICIENTLY TOUGH NOTHING SHOULD RAIN ON THIS AFTERNOON'S FULLREGALIA FAREWELL PARADE FOR YOU PRESIDENTS CLINTON AND BUSH WILL LEAD A DAZZLING BIPARTISAN ARRAY OF HEAVYWEIGHTS TROOPING OVER TO PAY HOMAGE BUT THESE CEREMONIES THE ADORING ARTICLES AND THE LOFTY POLLS NOTWITHSTANDING IT MAY NEVER BE THIS GOOD AGAIN THERE ARE LOTS OF LAND MINES AHEAD IN THE IMMEDIATE FUTURE THE CONCERN IS NOT WHETHER YOU MAKE A LOT OF MONEY OF COURSE YOU SHOULD BUT HOW THE BOOK DEAL IS TERRIFIC BUT BE CAREFUL ABOUT CORPORATE BOARDS SPEECHES AND OTHER FINANCIAL ACTIVITIES YOUR REPUTATION IS A PRECIOUS FRANCHISE IT'S A LOT EASIER TO LOSE IT THAN IT WAS TO EARN IT FORMER PRESIDENT REAGAN HASN'T BEEN VIEWED THE SAME BY THE PUBLIC EVER SINCE HE TOOK A 2 MILLION SPEAKING FEE FROM THE JAPANESE THE UNSEEMLY SPECTACLE OF JOHN SUNUNU AND JIM BAKER ACCOMPANYING GEORGE BUSH TO KUWAIT THIS YEAR TO COMMEMORATE DESERT STORM AND THEN STAYING AFTERWARD TO HUSTLE BUSINESS IS SOMETHING YOU DON'T NEED TO EMULATE YOUR VOW TO SPEND MORE TIME ON PRO BONO ACTIVITIES THAN YOU DO SPEAKING FOR LUCRATIVE FEES IS SMART ALSO YOU OUGHT TO RULE OUT ANY DEFENSERELATED CORPORATE BOARDS EVEN A COMPANY LIKE GENERAL MOTORS WHICH IS DYING FOR YOUR SERVICES AND WHOSE DEFENSE SECTOR IS A RELATIVELY SMALL PART OF ITS OVERALL BUSINESS ISN'T WORTH IT DON'T FOLLOW THE COURSE OF YOUR ASSOCIATE FORMER DEFENSE SECRETARY FRANK CARLUCCI WHO SERVES ON 16 BOARDS SELECT A FEW PRESTIGIOUS ONES CHOOSING CORPORATE BOARDS FOR YOU IS THE SAME AS RECRUITING FOR DEAN SMITH THE UNIVERSITY OF NORTH CAROLINA BASKETBALL COACH LET THEM COME AFTER YOU AND ONLY TAKE THE BEST THE YEAR OR SO SPENT ON YOUR BOOK IS IMPORTANT IT CAN FURTHER DEFINE YOUR POLITICAL PERSONA FEW DOUBT YOU'LL BE BACK IN PUBLIC SERVICE IN SOME FORM THE EASY ROUTE WILL BE AS A FUTURE SECRETARY OF STATE FOLLOWING IN THE FOOTSTEPS OF YOUR IDOL GEORGE MARSHALL THE CLINTON TRANSITION TEAM SOUNDED YOU OUT ON THIS LAST DECEMBER AND ANY REPUBLICAN LIKELY TO WIN IN 1996 WOULD HAVE YOU ON A SHORT LIST YOUR VIEWS ON FOREIGN POLICY AND NATIONAL SECURITY ESPECIALLY THE USE OF FORCE ALWAYS WILL BE IN DEMAND IT'S INTERESTING THAT YOUR PROUDEST ACHIEVEMENT AS CHAIRMAN OF THE JOINT CHIEFS ISN'T DESERT STORM BUT DOWNSIZING THE MILITARY FORCE WITHOUT BREAKING IT BUT AS YOU NOTE THE CURRENT SOURCE OF MY POPULARITY IS IN A NARROW RANGE SO EVENTUALLY WHAT YOU MUST DO IS FORCEFULLY ARTICULATE YOUR VIEWS ON PRESSING ECONOMIC AND SOCIAL ISSUES NOBODY FOR EXAMPLE IS BETTER POSITIONED TO ADDRESS THE TRAGIC PROBLEMS OF INNER CITY YOUTH A POWELL MESSAGE SPELLING OUT THE NEED TO DEAL WITH THE BREAKDOWN OF STANDARDS AND VALUES AND THE NEED TO CHANGE AMERICA'S INSANELY PERMISSIVE GUN POLICIES WOULD HAVE UNIQUE CREDIBILITY AND RESONATE POWERFULLY BE SURE AND SHOW THE SENSITIVE SIDE THAT YOUR FRIENDS FREQUENTLY CITE FOR INSTANCE BEFORE THE GROUNDBREAKING OF THE VIETNAM WOMEN'S MEMORIAL YOU READ VISIONS OF WAR DREAMS OF PEACE LYNDA VAN DEVANTER AND JOAN A FUREY'S COLLECTION OF POEMS WRITTEN BY MILITARY NURSES WHO SERVED IN VIETNAM AND WERE SO MOVED THAT YOU CALLED YOUR FRIEND RICH ARMITAGE IN TEARS YOU'RE NOT ED MUSKIE THERE'S NO RISK OF ANYONE CRITICIZING YOU AS A SOFTIE THEN IF YOU DECIDE TO RUN FOR NATIONAL OFFICE UNDERSTAND THE DISTINCT DIFFERENCES FROM WHAT EISENHOWER FACED FOUR DECADES AGO YOU PROBABLY WOULD HAVE BEEN SELECTED UNDER THAT OLD SYSTEM OF A RELATIVELY SMALL GROUP OF POLITICAL LEADERS PICKING A CANDIDATE IT THOUGHT COULD WIN AND GOVERN BUT NOW YOU HAVE TO GO OUT AND CONTEST INTERMINABLY IN DOZENS OF PRIMARIES AND UNLIKE IKE WHO WAS ELECTED DURING THE START OF THE COLD WAR YOUR MILITARY PAST HAS CONSIDERABLY LESS RELEVANCE TO PEOPLE'S CONCERNS TODAY NEVERTHELESS BOTH DEMOCRATS AND REPUBLICANS PRAY YOU'LL BE ONE OF THEM AS COLUMNIST MARK SHIELDS WROTE LAST YEAR YOU WERE THE ONLY AMERICAN WHO WOULD HAVE ADDED CREDIBILITY AND SUPPORT AS A RUNNING MATE TO ALL THREE PRESIDENTIAL CANDIDATES YOU WERE ROSS PEROT'S FIRST CHOICE BUT THAT ASSOCIATION IS IMPOSSIBLE IN LIGHT OF HIS PROBING INTO THE PERSONAL LIFE OF MR ARMITAGE A FORMER DEFENSE OFFICIAL IF YOU WOULD CHANGE YOUR MIND AND RUN FOR A LOWER OFFICE THE GOVERNORSHIP OF YOUR NATIVE NEW YORK WOULD BE APPEALING PARTICULARLY IF MARIO CUOMO RETIRES NEXT YEAR OTHERWISE THE PROBLEMS OF BECOMING A DEMOCRAT ARE OBVIOUS BILL CLINTON AND AL GORE MAY BE AROUND FOR YEARS THE REPUBLICANS PRESENT DIFFERENT BUT JUST AS DIFFICULT OBSTACLES AS MUCH AS YOU LIKED PRESIDENTS REAGAN AND BUSH'S FOREIGN POLICIES YOU WERE DEEPLY OFFENDED BY THEIR ADMINISTRATIONS' INSENSITIVITY ON RACE ISSUES STARTING WITH THE JUSTICE DEPARTMENT'S OUTRAGEOUS 1982 DECISION NOT TO OPPOSE TAX BREAKS FOR BOB JONES UNIVERSITY DESPITE ITS SEGREGATIONIST POLICIES THE RIGHTWING DOMINATION OF LAST SUMMER'S GOP CONVENTION ALSO TURNED YOU OFF THUS BUSINESSMAN BRUCE LLEWELLYN YOUR COUSIN AND CONFIDANT SAYS IN LIGHT OF GOP POLICIES ON RACE HE DOUBTS YOU WOULD BE COMFORTABLE IN THE REPUBLICAN PARTY ONE OFTTOUTED POSSIBILITY IS THAT INSTEAD OF SLUGGING IT OUT FOR THE PRESIDENTIAL NOMINATION YOU WOULD TAKE A VICE PRESIDENTIAL NOD BUT CAN YOU REALLY IMAGINE EIGHT YEARS AS VICE PRESIDENT IT WAS FINE FOR GEORGE BUSH HE HAD THE SOUL OF A VICE PRESIDENT YOU DON'T THE BOTTOM LINE IS THAT THE ODDS AGAINST YOUR BECOMING PRESIDENT ARE LONG BUT NOT NEARLY AS LONG AS THE ODDS 40 YEARS AGO THAT A YOUNG TEENAGE SON OF JAMAICAN IMMIGRANTS LIVING IN THE SOUTH BRONX A MEDIOCRE STUDENT ONCE PUT IN A CLASS FOR SLOW LEARNERS WOULD BECOME A GENERATION'S MOST CELEBRATED MILITARY HERO AND RESPECTED PUBLIC FIGURE 9309300101 930930 PEPPERAND SALT BUT IT HAS TO BE STATED WITHOUT ANY SPECIAL SHOES BE NEXT IN LINE 9309300100 930930 GM'S DIRECTORS PLAN TO REVIEW LABOR STRATEGY DECISION COMES AS UNIONS APPEAR TO PRESS FIRM CLOSER TO PATTERN' PACT BY NEAL TEMPLIN AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S BOARD PLANS TO REVIEW THE COMPANY'S LABOR STRATEGY MONDAY AS GM APPEARS TO BE GETTING BACKED INTO A CORNER BY ITS UNIONS THE CANADIAN AUTO WORKERS UNION SAID YESTERDAY THAT IT WAS CLOSE TO REACHING AGREEMENT WITH GM ON A NEW THREEYEAR PACT THAT CLOSELY FOLLOWS THE PATTERN CONTRACT EARLIER NEGOTIATED WITH CHRYSLER CORP THAT WILL INCREASE PRESSURE ON GM ALSO TO FOLLOW PATTERN IN THE US WHERE FORD MOTOR CO NEGOTIATED A CONTRACT WITH THE UNITED AUTO WORKERS THAT WOULD JACK UP GM'S LABOR COSTS AND ADD TO ITS 19 BILLION UNFUNDED PENSION LIABILITY THE FORD CONTRACT WAS RATIFIED BY A 2TO1 MARGIN BY FORD WORKERS THE UAW ANNOUNCED YESTERDAY SEPARATELY CHRYSLER AND THE UAW CONTINUED TO NEGOTIATE YESTERDAY AGAINST A UNIONDECLARED DEADLINE OF 1159 PM TONIGHT GM'S INDEPENDENT DIRECTORS HAVE DECLARED THAT THE COMPANY CAN'T AFFORD A REPEAT OF THE 1990 CONTRACT TALKS WHICH RESULTED IN GM PLEDGING TO PAY AS MUCH AS 335 BILLION TO IDLED WORKERS THAT PACT EFFECTIVELY FIXED GM'S LABOR COSTS AT A LEVEL ESTIMATED AT ABOUT 2000 A VEHICLE HIGHER THAN FORD'S GM PRESIDENT JOHN F SMITH JR THIS YEAR TRIED TO PERSUADE UAW LEADERS THAT GM NEEDED SPECIAL RELIEF IN THIS ROUND OF BARGAINING IN ORDER TO REGAIN COMPETITIVENESS MR SMITH MET AGAIN MONDAY WITH UAW PRESIDENT OWEN BIEBER AND STEPHEN P YOKICH THE UAW'S TOP NEGOTIATOR AT GM SO FAR HOWEVER UNION LEADERS HAVE MADE CLEAR THAT GM DOESN'T LOOK THAT SICK TO THEM MR BIEBER HAS REPEATEDLY DECLARED THAT HE WON'T ALLOW GM TO BREAK THE PATTERN SET AT FORD MR SMITH AND GM'S BOARD NOW APPEAR TO FACE A CHOICE BETWEEN RISKING A COSTLY CONFRONTATION WITH THE UAW OR SIMPLY SIGNING A CONTRACT BASED ON THE FORD PATTERN AND TRYING TO MAKE THE BEST OF IT IF GM DOES END UP SIGNING A FORDSTYLE UAW CONTRACT ANALYSTS SAY THE COMPANY MAY TRY TO OFFSET THE COSTS BY SELLING A FAR BIGGER CHUNK OF ITS 24 BILLION PARTSMAKING EMPIRE THAN HAS BEEN PREVIOUSLY ANNOUNCED THEY'RE GOING TO REEXAMINE EVERYTHING THEY'VE GOT ON THE COMPONENTS SIDE SAID PAINE WEBBER'S STEPHEN GIRSKY GM HAS 85000 HOURLY WORKERS IN ITS US PARTS OPERATIONS SHEDDING PARTS OPERATIONS WOULD BENEFIT GM IN TWO WAYS SAID JAMES HARBOUR AN INDUSTRY CONSULTANT BASED IN TROY MICH YOU GET CASH WHEN YOU SELL THEM HE SAYS AND YOU DON'T HAVE TO WORRY ABOUT FUNDING THEM IN THE FUTURE GM SAID IN DECEMBER THAT IT PLANNED TO SELL 14 DIFFERENT PARTSMAKING BUSINESSES THAT REPRESENT 3 BILLION IN ANNUAL SALES GM HAS SIGNED TWO MAJOR PARTS OPERATIONS SALES SO FAR THIS MONTH AND HAS NOW DISPOSED OF BUSINESSES GENERATING ROUGHLY 2 BILLION IN ANNUAL REVENUE A COMPANY SPOKESWOMAN SAID THE LATEST SALE CAME JUST TWO DAYS AGO WHEN GM SAID IT HAD AGREED TO SELL AN 80 STAKE IN ITS SMALL MOTORS AND ACTUATORS BUSINESS TO ITT CORP FOR 400 MILLION STILL EVEN IF GM SELLS ALL THE PARTS OPERATIONS TARGETED LAST DECEMBER IT WILL REMAIN FAR MORE VERTICALLY INTEGRATED THAN FORD AND CHRYSLER AND PAY FAR HIGHER COSTS FOR MANY ITEMS GM FOR EXAMPLE PAYS ABOUT 42 AN HOUR IN WAGES AND BENEFITS TO WORKERS AT ITS AC ROCHESTER DIVISION TO MAKE SPARK PLUGS ABOUT DOUBLE WHAT NEW EMPLOYEES AT CHAMPION SPARK PLUG A UNIT OF COOPER INDUSTRIES INC EARN TO PRODUCE THE SAME ITEM FOR OTHER AUTO MAKERS AT A TORONTO NEWS CONFERENCE CANADIAN AUTO WORKERS PRESIDENT BUZZ HARGROVE SAID GM HAS AGREED TO MATCH THE INCREASES IN WAGES PENSIONS AND TIME OFF THAT THE UNION ESTABLISHED WITH CHRYSLER EARLIER THIS MONTH BUT HEADING TOWARD THE DEADLINE AT 1159 PM YESTERDAY A FEW ISSUES OUTSTANDING SUCH AS SENIORITY RIGHTS AT SOME PLANTS KEPT THE TWO SIDES FROM SIGNING A FORMAL DEAL WE ARE EXTREMELY CLOSE TO BEING ABLE TO AVOID A STRIKE MR HARGROVE SAID LATE YESTERDAY AFTERNOON A MAJOR ACCOMPLISHMENT IN THE GM CANADA CONTRACT MR HARGROVE SAID IS AN AGREEMENT THAT WILL KEEP THE AXLE PLANT IN ST CATHARINES ONTARIO OPEN FOR AT LEAST THREE MORE YEARS EARLIER THIS MONTH GM AGREED TO SELL THE PLANT ALONG WITH FIVE PLANTS IN THE US TO AMERICAN AXLE & MANUFACTURING INC WHICH CAUSED FEAR IN THE CANADIAN UNION THAT THE PLANT WOULD BE CLOSED AND JOBS LOST MR HARGROVE SAID GM HAS STRUCK A DEAL WITH AMERICAN AXLE THAT ENSURES THE PLANT WILL STAY OPEN AND WILL KEEP THE 750 WORKERS THERE AS GM EMPLOYEES FOR THE DURATION OF THE UNION'S THREEYEAR CONTRACT 9309300098 930930 WHO'S NEWS CALIFORNIA FEDERAL BANK CALIFORNIA FEDERAL BANK LOS ANGELES EDWARD G HARSHFIELD 56 YEARS OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST CITY TEXAS NATIONAL BANK WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SAVINGS INSTITUTION HE SUCCEEDS WILLIAM L CALLENDER WHO IS RETIRING OCT 18 MR HARSHFIELD ALSO WILL ASSUME THE OPERATING RESPONSIBILITIES HELD BY THE BANK CHAIRMAN BEFORE RECENT BOARD RESTRUCTURING CALIFORNIA FEDERAL SAID DAVID GILBERT 47 SENIOR VICE PRESIDENT OF LOGICA NORTH AMERICA AND A CALIFORNIA FEDERAL BOARD MEMBER WAS ELECTED CHAIRMAN EFFECTIVE OCT 20 HE SUCCEEDS JERRY ST DENNIS WHO RESIGNED IN JULY 9309300097 930930 TODD TO SELL GALVESTON SHIPYARD SEATTLE TODD SHIPYARDS CORP SAID IT SIGNED A LETTER OF INTENT TO SELL ITS GALVESTON SHIPYARD FOR 6 MILLION TO GALVESTON WHARVES THE AGENCY THAT MANAGES GALVESTON'S PORT FACILITIES GALVESTON WHARVES WILL PAY 600000 IN CASH AND WILL RAISE THE REMAINDER THROUGH CITY REVENUE BONDS TODD SAID THE COMPANY SAID IT EXPECTS TO COMPLETE THE TRANSACTION BY JAN 1 TODD ALSO SAID IT WAS RAISING ITS LOSS RESERVES BY 48 MILLION TO 173 MILLION TO COVER OVERRUNS ON A CONTRACT TO ENLARGE TWO CONTAINER SHIPS OWNED BY MATSON NAVIGATION CO TODD SIGNED THE ORIGINAL 20 MILLION MATSON CONTRACT IN FEBRUARY 9309300096 930930 WHO'S NEWS MCI PROMOTES THREE INSIDERS TO LEAD CONSUMER BUSINESS AND GLOBAL GROUPS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP RESHUFFLED SENIOR MANAGEMENT IN THE WAKE OF ITS ALLIANCE WITH BRITISH TELECOMMUNICATIONS PLC LEAVING THE POSITION OF PRESIDENT VACANT AND PROMOTING THREE INSIDERS TO HEAD GROUPS FOCUSED ON THE CONSUMER BUSINESS AND INTERNATIONAL MARKETS AS PART OF THE RESTRUCTURING MCI CHAIRMAN AND CHIEF EXECUTIVE BERT C ROBERTS JR DECIDED AGAINST FILLING THE NO 2 JOB OF PRESIDENT WHICH HAD BELONGED TO DANIEL AKERSON WHO QUIT SUDDENLY IN AUGUST TO HEAD GENERAL INSTRUMENT CORP INSTEAD HE EXPANDED THE DUTIES OF A HANDFUL OF EXECUTIVES CHIEF AMONG THEM GERALD H TAYLOR WHO BECOMES EXECUTIVE VICE PRESIDENT OF MCI COMMUNICATIONS SERVICES ASSUMING DAYTODAY RESPONSIBILITY FOR WHAT COMPRISES ABOUT 90 OF MCI REVENUE THE REALIGNMENT COMES AS MCI THE NATION'S NO 2 LONGDISTANCE CARRIER WITH 11 BILLION IN ANNUAL SALES TAKES ON NO 1 AMERICAN TELEPHONE & TELEGRAPH CO IN REGULAR TELEPHONE SERVICE AND SEARCHES TO FIND ITS PLACE IN FUTURE MULTIMEDIA SERVICES THAT WILL COMBINE VOICE DATA AND VIDEOTRANSMISSION SERVICES ALL OF THESE THINGS ARE VERY CRITICAL TO THE FUTURE OF OUR BUSINESS MR ROBERTS SAID ADDING THAT THE PROMOTION OF MR TAYLOR WILL FREE THE CHAIRMAN TO CHASE NEW OPPORTUNITIES HERE AND OVERSEAS IN FIVE OR SIX YEARS THE SUCCESS OF THE COMPANY WILL BE DETERMINED BY HOW WELL WE MAKE THE BT ALLIANCE WORK AND POSITION OURSELVES IN THE NEWER MARKETS SUCH AS PERSONAL COMMUNICATIONS SERVICES AND MULTIMEDIA MR ROBERTS SAID MR TAYLOR FORMERLY PRESIDENT OF MCI'S CONSUMER SERVICES BUSINESS ESSENTIALLY BECOMES THE COMPANY'S NO 2 EXECUTIVE OVERSEEING THE CONSUMER AND BUSINESS GROUPS MR TAYLOR WAS THE THIRD EMPLOYEE TO JOIN MCI AND HAS BEEN WITH THE COMPANY FOR 25 YEARS THE THIRD GROUP THE INTERNATIONAL OPERATION WILL HANDLE OVERSEAS ALLIANCES AND SERVICE TO MULTINATIONAL CLIENTS IT REPORTS TO THE CHAIRMAN ANGELA O DUNLAP WAS NAMED PRESIDENT OF MCI'S CONSUMER BUSINESS BECOMING MCI'S HIGHESTRANKING FEMALE EXECUTIVE AND ASSUMING MR TAYLOR'S PREVIOUS DUTIES ON THE INTERNATIONAL SIDE EUGENE EIDENBERG WILL HEAD MCI INTERNATIONAL GROUP AS EXECUTIVE VICE PRESIDENT THE NEW GROUP WILL PURSUE NEW OVERSEAS BUSINESS MANAGE MCI'S INTERNATIONAL ALLIANCES SUCH AS THE ONE WITH BT AND SET UP MULTINATIONAL CORPORATE NETWORKS MCI WHICH IS BASED IN WASHINGTON DC ALSO NAMED TIMOTHY F PRICE FORMERLY PRESIDENT OF THE BUSINESS SERVICES AREA TO BE PRESIDENT OF AN EXPANDED GROUP OFFERING VOICE AND DATA TRANSMISSION SERVICES TO USBASED BUSINESSES OF ALL SIZES AT&T'S FINANCIAL ABILITY TO FIGHT A WORLD WAR ON NUMEROUS FRONTS FORCED MCI IN JUNE INTO AN ALLIANCE WITH BT WHICH GAVE THE UK CARRIER 20 OF MCI FOR 43 BILLION IN CASH MORE RECENTLY AT&T RAISED THE STAKES BY PUSHING BOLDLY INTO THE LOCAL WIRELESS SERVICES MARKET WITH A PLANNED ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH FOR 126 BILLION IN STOCK PLUS ASSUMPTION OF 5 BILLION IN DEBT IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MCI CLOSED AT 27875 DOWN 125 CENTS 9309300095 930930 INTERNATIONAL SOME SEE CASTRO REGIME COMING TO END IN VIOLENCE AS CUBAN ECONOMY WORSENS BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI THE PRESIDENT WAS ADDRESSING CONGRESS ABOUT THE BARBARITIES BLOODSHED STARVATION AND HORRIBLE MISERIES EXISTING IN CUBA AND HE SAID GIVEN THE ISLAND'S PROXIMITY TO THE US IT WAS OUR DUTY TO INTERVENE THAT ADDRESS TO CONGRESS WAS MADE BY PRESIDENT WILLIAM MCKINLEY IN 1898 SHORTLY BEFORE THE US DID INDEED INTERVENE IN THAT TROUBLED ISLAND THEN ENGAGED IN A CIVIL WAR AND INDEPENDENCE STRUGGLE AGAINST SPAIN LAST WEEK HARVARD UNIVERSITY PROF JORGE DOMINGUEZ ONE OF THE US'S LEADING EXPERTS ON CUBA REMINDED A CONFERENCE OF CUBA SCHOLARS IN OTTAWA OF PRESIDENT MCKINLEY'S 1898 ADDRESS HIS POINT WHILE THERE IS NO CIVIL WAR IN CUBA THE ISLAND'S PLUMMETING ECONOMY AND SEVERE SHORTAGES OF FOOD AND FUEL INCREASE THE POSSIBILITY THAT FIDEL CASTRO'S REGIME WILL END IN BLOODSHED IF THAT IS THE CASE CONCLUDED MR DOMINGUEZ THERE IS A DANGER THAT THE END OF THE 20TH CENTURY MIGHT SEE A REPLAY OF THE END OF THE 19TH CENTURY AND A US PRESIDENT MIGHT CALL FOR INTERVENTION TO STOP CHAOS IN CUBA IN 1998 USING TERMS EERILY SIMILAR TO PRESIDENT MCKINLEY'S IT'S TOTALLY IN THE REALM OF POSSIBILITY SAID MARIFELI PEREZ STABLE A CUBA ANALYST AT THE STATE UNIVERSITY OF NEW YORK AT OLD WESTBURY ANOTHER CONFERENCE SPEAKER FIDEL CASTRO SEEMS TO THINK SO TOO IN A SPEECH SUNDAY MR CASTRO WARNED AGAINST WHAT HE CALLED US ATTEMPTS TO DIVIDE AND CONQUER THAT IS WHY IT'S SO IMPORTANT TO UNITE THE RANKS OF REVOLUTIONARIES SO THAT IMPERIALISTS DON'T FIND A JUSTIFICATION FOR A HUMANITARIAN INTERVENTION' IN OUR COUNTRY HE SAID AND IT MIGHT NOT TAKE UNTIL 1998 IN MIAMI TUESDAY THE SECOND CUBAN MIG PILOT TO DEFECT TO THE US THIS MONTH SAID HE DECIDED TO FLY TO THE US MILITARY BASE AT GUANTANAMO CUBA AFTER HAVING LISTENED TO RECORDED INSTRUCTIONS FROM CUBA'S CHIEF OF STAFF THAT SAID THE MILITARY SHOULD BE PREPARED IN THE FUTURE TO PUT DOWN AN ANTIGOVERNMENT REVOLT WE HAVE FOUGHT WITH STEEL RODS STICKS AND STONES THE PILOT 32YEAROLD LEONIDES BASULTO QUOTED THE INSTRUCTIONS DELIVERED BY THE CHIEF OF STAFF GEN ULISES ROSALES DEL TORO AS SAYING BUT IF THE PROBLEM WORSENS IF THINGS GET MORE COMPLICATED THEN IT WILL BE NECESSARY TO USE GUNS TANKS PLANES WHATEVER HAS TO BE USED CAPT BASULTO SAID HE LEFT BECAUSE HE WANTED NOTHING TO DO WITH THAT HE SAID MORALE WAS SO BAD IN THE AIR FORCE THAT ONLY THREE OF 100 PILOTS AT HIS BASE WERE TRUSTED TO FLY ALONE CUBA RECENTLY HAS EMBARKED ON A SERIES OF REFORMS IT HOPES WILL SPARK SOME LIFE INTO THE DYING ECONOMY THE MOST DRASTIC ALLOWS CUBANS TO EARN AND HOLD US DOLLARS PREVIOUSLY AN OFFENSE THAT RESULTED IN A PRISON SENTENCE ANOTHER REFORM ALLOWS CUBANS EXCEPT COLLEGE GRADUATES TO PRACTICE SUCH PRIVATE TRADES AS CARPENTRY BUT MANY ANALYSTS BELIEVE THE REFORMS AREN'T ENOUGH TO TURN THE ECONOMY AROUND BUT MORE THAN ENOUGH TO ACCENTUATE TENSIONS AND CONTRADICTIONS RESULTING FROM THE SOCIALIST AND PRIVATE ECONOMIES TO DATE THE BEST EVIDENCE OF THAT HAS COME FROM THE TWO DEFECTING PILOTS BOTH PILOTS COMPLAINED THAT CUBA'S MILITARY OFFICERS ARE EXCLUDED FROM THE NEWLY LEGAL DOLLAR ECONOMY TURNING INTEGRAL MEMBERS OF THE ISLAND'S ELITE INTO SECONDCLASS CITIZENS THE PEOPLE WHO BENEFIT ARE THE ONES WHO ARE LEAST LOYAL SAID PROF DOMINGUEZ OF HARVARD ALMOST EVERYONE IN THE MILITARY IS UNHAPPY SAID ENIO RAVELO THE 32YEAROLD PILOT WHO DEFECTED WITH HIS MIG TO KEY WEST SIX DAYS BEFORE CAPT BASULTO THE SITUATION IS EXPLOSIVE THE PROBLEM IS THAT IN TODAY'S CONFUSING AND EVOLVING CUBA AN ANTIREVOLUTIONARY TAXI DRIVER CAN MAKE ENDS MEET WHILE A TRUEBLUE REVOLUTIONARY JET FIGHTER PILOT CAN'T A 12YEAR VETERAN OF THE CUBAN AIR FORCE WHO FOUGHT FOR TWO YEARS IN ANGOLA CAPT RAVELO SAID HIS MONTHLY SALARY OF 360 PESOS ABOUT 5 WAS BARELY ENOUGH TO FEED HIS WIFE AND CHILD FOR TWO DAYS BOTH PILOTS ALSO SAID THAT BECAUSE OF THE ISLAND'S ECONOMIC CRISIS MILITARY EQUIPMENT IS IN DANGEROUS DISREPAIR THE PLANES AREN'T SAFE SAID CAPT RAVELO WHOSE OWN SHODDY MIG HAD BALD TIRES WHEN HE LANDED IN KEY WEST MOST ANALYSTS SAY THE POSSIBILITY OF A TAKEOVER BY DISCONTENTED OFFICERS ISN'T GREAT GIVEN THE EFFICIENCY OF CUBA'S COUNTERINTELLIGENCE BUT A LIKELIER SCENARIO IS THAT THE ARMED FORCES MIGHT BE UNWILLING TO CONTAIN UNREST OVER WORSENING CONDITIONS BOTH PILOTS SAID IT'S UNLIKELY THE MILITARY WILL FIRE ON THE PEOPLE WHEN THEY CALL ON THE MILITARY TO REPRESS THE PEOPLE THEN THE MILITARY WILL REBEL AND THINGS WILL GET UGLY FOR FIDEL SAID MR RAVELO FEARING A VIOLENT END CUBA'S NEWLY ENERGIZED ROMAN CATHOLIC CHURCH FOR THE FIRST TIME IS OPENLY CHALLENGING THE REGIME TWO WEEKS AGO THE CHURCH ISSUED A 17PAGE PASTORAL MESSAGE SIGNED BY THE ISLAND'S 11 BISHOPS AND DELIVERED A COPY TO CUBA'S FOREIGN MINISTER THOUSANDS OF CUBANS HAVE LINED UP AT CHURCHES TO BUY THE DOCUMENT FOR A FEW CENTS EVEN THOUGH IT HAS BEEN CONDEMNED BY THE GOVERNMENT IN RESPECTFUL TERMS THE CHURCH CALLED FOR A NATIONAL DIALOGUE INCLUDING CUBAN EXILES TO RESCUE THE COUNTRY FROM ITS PRECARIOUS SITUATION THE BISHOPS ALSO CRITICIZED THE GOVERNMENT'S MONOPOLY ON SOCIAL AND POLITICAL LIFE THEY SAID THAT EXPLOSIONS OF IRRATIONAL VIOLENCE ARE HAPPENING IN TOWNS AND CITIES AND URGED CUBANS NOT TO GIVE IN TO THE TEMPTATION OF VIOLENCE IT'S THE FIRST TIME THAT AN IMPORTANT INSTITUTION IN CUBA WITH SOME CLOUT MAKES A STATEMENT OF THAT SORT SAID MR DOMINGUEZ IT'S AN IMPORTANT EVENT 9309300094 930930 INTERNATIONAL JAPAN EXPECTED TO EASE ITS BAN ON RICE IMPORTS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO RESPONDING TO WHAT COULD BE ITS WORST POSTWAR RICE HARVEST A RELUCTANT JAPAN IS ABOUT TO TEAR DOWN AT LEAST TEMPORARILY BARRIERS TO RICE IMPORTS TODAY JAPAN'S AGRICULTURE MINISTRY WILL ANNOUNCE JUST HOW BAD THIS YEAR'S RICE HARVEST IS THE ANNOUNCEMENT WHICH COULD SHOW A 10 TO 20 DROP IN DOMESTIC YIELDS WILL DETERMINE HOW MUCH RICE THE NATION WILL HAVE TO IMPORT THIS YEAR TO MAKE UP THE SHORTFALL THE FIGURES WILL PROVE THAT IMPORTS ARE INEVITABLE THERE'S NO GETTING AROUND IT SAID TOSHIHARU NISHIGUCHI AN ANALYST AT TOKYO'S RICE DATABANK A CONSULTING COMPANY MR NISHIGUCHI ALSO ESTIMATED JAPAN WILL IMPORT MORE THAN ONE MILLION METRIC TONS OF RICE OVER THE COMING YEAR OR ABOUT 7 OF TOTAL GLOBAL PURCHASES OF RICE JAPAN'S KYODO NEWS SERVICE REPORTED THAT JAPAN MIGHT IMPORT 11 MILLION METRIC TONS A METRIC TON IS 220462 POUNDS THE EXPECTED DECISION TO IMPORT RICE ALBEIT A ONETIME EMERGENCY MEASURE WILL BE WELCOMED BY FOREIGN RICE TRADERS WHO SEE THIS AS AN OPPORTUNITY TO PRY OPEN JAPAN'S RICE MARKET ON A PERMANENT BASIS THE KYODO REPORT ESTIMATED THAT 300000 TONS OF THE EMERGENCY RICE IMPORTS WOULD COME FROM THE US AND 400000 TONS EACH FROM THAILAND AND AUSTRALIA NEGOTIATORS IN THE URUGUAY ROUND OF WORLD TRADE TALKS ARE ALREADY STEPPING UP PRESSURE ON JAPAN SAYING ITS REFUSAL TO LIFT THE BAN ON RICE IMPORTS IS A MAJOR STUMBLING BLOCK TO THE TALKS CALLS FOR LIBERALIZATION ARE RISING EVEN WITHIN JAPAN THE GOVERNMENT MUST PREPARE TO OPEN THE MARKET TO PREVENT PANIC IF DOMESTIC PRODUCTION BECOMES INSUFFICIENT SAID A RECENT EDITORIAL BY THE YOMIURI SHIMBUN A MAJOR NEWSPAPER BUT FOREIGN RICE LOOKS LIKELY TO GET ONLY A LUKEWARM RECEPTION THOUGH FOREIGN NEGOTIATORS ARGUE THE JAPANESE WILL BENEFIT BY GAINING ACCESS TO CHEAPER FOREIGN RICE MANY JAPANESE ARE COOL TO THE IDEA FOREIGN RICE ISN'T WORTH BUYING SAID MICHIYO AKIMOTO A 27YEAROLD TOKYO INSURANCE COMPANY EMPLOYEE I KNOW IT TASTES ALL DRY AND BAD SHE SAID I HAD IT ONCE ON A PLANE EN ROUTE TO A VACATION AKIKO ANDO EMPHASIZED THAT SHE SUPPORTS THE PRINCIPLE OF LIBERALIZING JAPAN'S RICE MARKET BUT THE 49YEAROLD HOUSEWIFE FROM SUBURBAN TOKYO FROWNS WHEN ASKED IF SHE WILL TRY THE FOREIGN BRANDS MAYBE ONCE BUT ONLY ONCE AND PURELY OUT OF CURIOSITY SHE SAID CLUTCHING A BAG OF JAPAN'S PROMINENT KOSHIHIKARI BRAND COSTING 640 YEN 610 A KILOGRAM OR 22 POUNDS FOREIGN RICE MAY COST ONLY 12 OF WHAT HER DOMESTIC BRAND DOES BUT I'M SURE IT'S GOING TO LACK THE MOISTURE AND STICKINESS OF JAPANESE RICE SHE SAID FOREIGN RICE TRADERS WOULD BE WRONG TO EXPECT AN ALLY IN JAPAN'S NASCENT CONSUMER GROUPS WHO ARE PRESSING FOR VARIOUS PRICECUTTING MEASURES IMPORTED FOOD MAY NOT BE SAFE TO EAT SAID HIROKO MIZUHARA PRESIDENT OF CONSUMERS' UNION OF JAPAN WORRIED THAT THIS YEAR'S IMPORTS MAY SET A BAD PRECEDENT MS MIZUHARA SUGGESTED IF THERE ISN'T ENOUGH RICE WE SHOULD EAT POTATOES INSTEAD OF COURSE CONSUMERS MAY CHANGE THEIR MINDS ONCE THEY BECOME FAMILIAR WITH FOREIGN RICE ANALYSTS SAID CALIFORNIA SHORTGRAIN RICE FOR EXAMPLE TASTES SIMILAR TO JAPANESE BRANDS AND IS FAVORED BY JAPANESE RESIDENTS OVERSEAS BESIDES JAPANESE CONSUMERS ARE KNOWN TO BE OVERLY CAUTIOUS ABOUT FOREIGN FOOD JUST BEFORE JAPAN'S BEEF MARKET OPENED IN 1991 MANY JAPANESE SAID FOREIGN BEEF PROBABLY WOULDN'T SUIT THEIR TASTE BUT IN THE YEAR ENDED MARCH 31 THE VOLUME OF BEEF IMPORTS SOARED 30 FROM A YEAR EARLIER 9309300093 930930 WHO'S NEWS DISNEYLAND'S LINDQUIST TO RETIRE LATER THIS YEAR ANAHEIM CALIF JACK LINDQUIST WHO WAS DISNEYLAND'S FIRST ADVERTISING MANAGER IN 1955 AND ROSE TO BECOME THE PARK'S FIRST AND ONLY PRESIDENT WILL RETIRE LATER THIS YEAR MR LINDQUIST 66 YEARS OLD IS CONSIDERED THE MAIN PERSON OTHER THAN THE LATE WALT DISNEY MOST RESPONSIBLE FOR DISNEYLAND'S GROWTH MOST RECENTLY MR LINDQUIST HAS BEEN BUSY SELLING LOCAL AND STATE POLITICIANS ON PARENT WALT DISNEY CO'S PLAN FOR A 3 BILLION EXPANSION THAT WOULD ADD A SECOND WORLD'S FAIRSTYLE THEME PARK AND SEVERAL HOTELS TO THE ANAHEIM PROPERTY DISNEY HASN'T YET NAMED A SUCCESSOR FOR MR LINDQUIST AND COMPANY SPOKESMEN DECLINED TO ELABORATE ON HIS PLANNED DEPARTURE IN ABOUT SIX WEEKS MR LINDQUIST WHO HAS SERVED AS PRESIDENT OF DISNEYLAND SINCE 1990 WASN'T IMMEDIATELY AVAILABLE FOR COMMENT MR LINDQUIST WAS FIRST ASSIGNED THE JOB OF SELLING TOURISTS ON THE IDEA OF TICKETBOOKS A FOREIGN CONCEPT WHEN DISNEYLAND OPENED IN 1955 AND OTHER AMUSEMENT PARKS WERE CHARGING GUESTS PER RIDE MR LINDQUIST WENT ON TO SERVE AS MARKETING DIRECTOR FOR WALT DISNEY WORLD IN FLORIDA WHEN IT OPENED IN 1971 AND WAS LATER NAMED EXECUTIVE VICE PRESIDENT OF MARKETING AND ENTERTAINMENT FOR ALL OF DISNEY'S OUTDOOR RECREATION ACTIVITIES 9309300092 930930 CITICORP APPLE TO LAUNCH CREDIT CARD WITH REBATES NEW YORK CITICORP'S CITIBANK UNIT AND APPLE COMPUTER INC ARE WORKING ON LAUNCHING A NEW CREDIT CARD THAT WOULD OFFER REBATES TOWARD THE PURCHASE OF COMPUTER EQUIPMENT CITICORP AND APPLE EXECUTIVES WERE SCHEDULED TO ANNOUNCE THE NEW CARD TODAY BUT LASTMINUTE LEGAL SNAGS BETWEEN THE TWO COMPAMPTED THEM TO CALL OFF THE ANNOUNCEMENT INDUSTRY OFFICIALS SAID THE TWO COMPANIES WOULDN'T COMMENT CARD ISSUERS HAVE SHIFTED THE CREDIT CARD WARS TOWARD MORE SEGMENTED PRODUCTS TAILORING CARDS TO MEET SPECIFIC MARKETS RATHER THAN HAVING ONE OR TWO CARDS FOR THE ENTIRE MARKET THE NEW APPLE CARD WOULD BE CITIBANK'S 10TH SUCH TAILORED CARD AND IS MODELED ON CITIBANK'S FORD MOTOR CO COBRANDED CREDIT CARD WHICH OFFERS REBATES TOWARD THE PURCHASE OF FORD AUTOMOBILES CITIBANK WILL ISSUE APPLE CARDS FROM BOTH VISA USA AND MASTERCARD INTERNATIONAL IT'S A NEW TWIST ON AN OLD IDEA SAID KURT PETERS PUBLISHER OF CREDIT CARD NEWS A CHICAGO NEWSLETTER 9309300091 930930 MARKETING & MEDIA MADEMOISELLE EDITOR QUITS IN CLASH OVER CONCEPTS NEW YORK THE EDITOR IN CHIEF OF MADEMOISELLE MAGAZINE RESIGNED AFTER LESS THAN A YEAR IN THE JOB CITING CONCEPTUAL DIFFERENCES WITH SI NEWHOUSE JR CHAIRMAN OF CONDE NAST PUBLICATIONS GABE DOPPELT 33 YEARS OLD SAID I FELT THEY HAD ONE VISION AND I HAD ANOTHER I WANTED TO DO A CUTTINGEDGE MAGAZINE FOR YOUNG WOMEN BUT MR NEWHOUSE WANTED SOMETHING MORE MAINSTREAM CONDE NAST A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC HASN'T NAMED A SUCCESSOR WITHIN THE WORLD OF WOMEN'S MAGAZINES MADEMOISELLE HAS HAD SOMETHING OF A FUZZY IMAGE IN RECENT YEARS WITH ITS LOOK AND CONTENT CONSIDERED TOO CLOSE TO OTHER MAGAZINES SUCH AS SELF GLAMOUR AND COSMOPOLITAN WHEN MS DOPPELT TOOK OVER LAST OCTOBER SHE ANNOUNCED SHE WOULD REMAKE MADEMOISELLE INTO A HIPPER ALTERNATIVE AND TARGET IT MORE PRECISELY TO THE TWENTYSOMETHING GENERATION THE MAGAZINE'S REDESIGN WAS UNVEILED IN MARCH WITH BOLDER GRAPHICS AND DARING ARTICLES 9309300090 930930 IBM COOPERATES WITH FBI ON PROBE OF ALLEGED FRAUD NEW YORK INTERNATIONAL BUSINESS MACHINES CORP CONFIRMED IT IS COOPERATING WITH A FEDERAL BUREAU OF INVESTIGATION PROBE OF WARRANTY FRAUD AND OTHER SCAMS THAT THE COMPANY SAYS HAVE COST IT MILLIONS OF DOLLARS THE INVESTIGATION REPORTED BY THE WASHINGTON POST BEGAN IN 1991 AND IS LOOKING AT COMPUTER DEALER EMPLOYEES WHO WERE ALLEGEDLY STEALING FROM IBM BY SUBMITTING FALSE WARRANTY CLAIMS AND RESELLING COMPUTERS AND COMPUTER PARTS THAT IBM THOUGHT WERE BEING DESTROYED ACCORDING TO JOHN PATTERSON A DALLAS COMPUTER DEALER WHO AIDED THE FBI AND IBM IN THE INVESTIGATION MR PATTERSON IN AN INTERVIEW SAID 86 DEALERS TOOK PART IN THE FRAUD SOME OF THEM WITH SALES OVER 50 MILLION HE DECLINED TO NAME THEM SPECIFICALLY THE FBI ASKED ABOUT MR PATTERSON'S ALLEGATIONS WOULDN'T COMMENT IBM CHARACTERIZED THE INVESTIGATION AS ONGOING BUT SAID IT WAS SATISFIED THAT IT HAS CORRECTED THE PROBLEMS THAT ALLOWED THE ALLEGED FRAUD TO HAPPEN IT HAS TIGHTENED UP INVENTORIES TO SELL OFF LESS IN SURPLUS PARTS AND IS MONITORING THE DESTRUCTION OF SPARE PARTS AND MACHINES BY SCRAP METAL YARDS COMPUTER INDUSTRY EXPERTS SAID SUCH PROBLEMS AREN'T UNIQUE TO IBM OR THE COMPUTER INDUSTRY THE DEFENSE INDUSTRY HAS BEEN PLAGUED BY FRAUD AND THEFT OF SURPLUS GOODS FOR YEARS 9309300089 930930 CHRYSLER TO UPGRADE FACILITY INDIANAPOLIS CHRYSLER CORP SAID IT WILL INVEST MORE THAN 250 MILLION TO UPGRADE MACHINERY AND EQUIPMENT AT ITS KOKOMO IND TRANSMISSION AND CASTING FACILITIES 9309300088 930930 TECHNOLOGY US LIST OF EFFICIENT CARS IS SHORT ON US COMPANIES WASHINGTON THE GEO METRO XFI IS THE MOST FUELEFFICIENT CAR IN THE US FOR THE 1994 MODEL YEAR AND THE ROLLSROYCE SILVER SPUR III LIMOUSINE IS THE LEAST FUEL EFFICIENT ACCORDING TO THE ENVIRONMENTAL PROTECTION AGENCY THE BAD NEWS FOR US AUTO MAKERS IS THAT THEY ARE LARGELY ABSENT FROM THE EPA'S ANNUAL LIST OF TOP 10 FUELEFFICIENT MODELS THOUGH THE LIST INCLUDES THE HONDA CIVIC MANUFACTURED BY HONDA MOTOR CO MAINLY IN THE US THE GEO METRO IS MADE IN CANADA BY A JOINT VENTURE OF GENERAL MOTORS CORP AND SUZUKI MOTORS CORP BUT US COMPANIES ARE ALSO ABSENT FROM THE AGENCY'S LIST OF BOTTOM 10 MODELS WHICH INCLUDES SUCH GASGUZZLING LUXURY IMPORTS AS THE FERRARI 512 TR AND THE JAGUAR XJ12 THE US NOW REQUIRES MANUFACTURERS' FLEETS TO MEET A STANDARD AVERAGE FUEL EFFICIENCY OF 275 MILES PER GALLON FOR PASSENGER CARS IF THE COMPANIES FALL BELOW THE FEDERAL STANDARD THEY ARE PENALIZED BUT AN EPA OFFICIAL SAID SUCH COMPANYBASED CALCULATIONS HAVEN'T BEEN MADE YET FOR 1994 MODELS THE LATEST EPA REPORT SAID THE GEO METRO XFI AVERAGED 53 MPG IN THE CITY AND 58 MPG ON THE HIGHWAY THE ROLLSROYCE SILVER SPUR III LIMOUSINE AVERAGED 10 MPG CITY AND 14 MPG HIGHWAY 9309300087 930930 FTC TO TRY TO BLOCK GE PLAN TO BUY CHRYSLER BOXCARS BY AMAL KUMAR NAJ AND DANIEL MACHALABA STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL TRADE COMMISSION SAID IT WILL SEEK A TEMPORARY COURT ORDER TO BLOCK GENERAL ELECTRIC CO'S PLANNED PURCHASE OF CHRYSLER CORP'S FLEET OF RAILROAD BOXCARS WHICH CHRYSLER CURRENTLY LEASES OUT THE FTC ACTION FOLLOWS INTENSE BEHINDTHESCENES LOBBYING BY SOME SEGMENTS OF THE RAILROAD INDUSTRY WHICH OPPOSED GE'S PURCHASE ON THE GROUNDS THAT IT WOULD ALLOW GE TO CORNER THE MARKET ON A SPECIALLY VALUABLE CATEGORY OF BOXCARS AND THE FTC SEEMED TO AGREE THE AGENCY SAID THAT IN SEEKING THE COURT ORDER IT WILL ARGUE THAT THE ACQUISITION WOULD SIGNIFICANTLY DECREASE COMPETITION IN THE US AND CANADA BOXCAROPERATING LEASE MARKET GE ANNOUNCED EARLIER THIS YEAR THAT IT PLANNED TO BUY CHRYSLER'S FLEET OF 4000 CARS SOME RAILROAD COMPANIES ESTIMATED THAT THE ACQUISITION WOULD RESULT IN GE OWNING 90 OF A SPECIAL SUBSET OF RAILCARS THOSE EXEMPT FROM FEDERAL RATEREDUCTION ORDERS WE ARE JUST RELIEVED THAT COMPETITION WILL BE PRESERVED SAID ANTHONY HANNOLD PRESIDENT OF THE PRIVATELYHELD ARKANSAS & MISSOURI RAILROAD CO A SHORT LINE BASED IN SPRINGDALE ARK WE WERE WORRIED THAT GE WAS PUTTING ITSELF IN A POSITION OF MARKET DOMINANCE IN GRANDFATHERED BOXCARS HE SAID A SPOKESWOMAN FOR GE'S GE CAPITAL WHICH INCLUDES GE'S RAILCAR LEASING BUSINESS SAID ITS COUNSEL IS TALKING WITH THE FTC AND IS TRYING TO UNDERSTAND THE REASON FOR THE DECISION WE'LL STUDY THE MATTER AND DECIDE WHAT IF ANY STEPS SHOULD BE TAKEN THE SPOKESWOMAN SAID THE FTC SAID THAT INDUSTRY SOURCES RECOGNIZE GE RAILCAR LEASING SERVICES CORP BASED IN CHICAGO AS THE LARGEST LEASER OF BOXCARS IN THE US AND CHRYSLER RAIL TRANSPORTATION CORP BASED IN LINCOLNSHIRE ILL AS THE SECOND LARGEST THE FTC WILL ALLEGE THAT THE PROPOSED TRANSACTION WOULD INCREASE THE LIKELIHOOD OF HIGHER LEASE PRICES THE AGENCY SAID THE COMMISSION VOTED 40 TO SEEK THE FEDERAL COURT ORDER IF GE AND CHRYSLER PROCEED WITH THE PLANNED TRANSACTION THE FTC SAID IT WOULD FILE A MOTION FOR A TEMPORARY RESTRAINING ORDER AND A PRELIMINARY INJUNCTION TO BLOCK THE PURCHASE UNTIL AN ADMINISTRATIVE TRIAL CAN BE HELD ON THE MERITS OF THE CASE THE FTC SAID IT WOULD FILE THE MOTION FOR PRELIMINARY INJUNCTION IN THE US DISTRICT COURT FOR THE DISTRICT OF COLUMBIA IF THE COURT GRANTS SUCH A MOTION THE COMMISSION HAS 20 DAYS TO ISSUE THE ANTITRUST COMPLAINT GE WHICH HAS BEEN EXPANDING ITS OVERALL FLEET OF VARIOUS TYPES OF RAILCARS IN THE PAST FEW YEARS HAS BEEN AMASSING BOXCARS IN RECENT YEARS ANALYSTS ESTIMATE THAT THE COMPANY'S HOARD OF ABOUT 38000 BOXCARS IS UP 40 IN THE PAST YEAR MAJOR RAILROADS SUCH AS CONRAIL CORP AND UNION PACIFIC CORP HAVEN'T EXPRESSED CONCERN ABOUT THE GE PURCHASE BUT SMALLER RAILROADS WHICH DON'T HAVE DEEP POCKETS TO BUY EQUIPMENT OR PAY SIGNIFICANTLY HIGHER RENTAL RATES ON THE EQUIPMENT THEY USE ARGUE THAT THEIR COSTS WOULD RISE IF GE WERE ALLOWED TO INCREASE ITS DOMINANCE I THINK THE TRANSACTION WOULD HAVE RESULTED IN PRICE INCREASES FOR THE USE OF BOXCARS WHICH ARE INCREASINGLY IN SHORT SUPPLY SAID MARK M LEVIN A DIRECTOR OF KANSAS CITY SOUTHERN INDUSTRIES INC THE PARENT OF KANSAS CITY SOUTHERN RAILWAY CO CHRYSLER OFFICIALS COULDN'T BE REACHED FOR COMMENT 9309300086 930930 UNITED AIRLINES FLIGHT ATTENDANTS UNION PULLS OUT OF LABORCONCESSION TALKS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE FLIGHT ATTENDANTS UNION AT UNITED AIRLINES ABRUPTLY PULLED OUT OF LABORCONCESSION TALKS THAT INCLUDED A PLAN TO SET UP A LOWCOST LOWFARE AIRLINE TO OPERATE WITHIN THE GIANT CARRIER THE MOVE BY THE ASSOCIATION OF FLIGHT ATTENDANTS SPARKED BY A DECISION BY UNITED THIS WEEK TO BASE FLIGHT ATTENDANTS IN TAIWAN JEOPARDIZES THE TWOMONTHOLD TALKS BETWEEN A UNION COALITION AND UNITED THE MAIN UNIT OF UAL CORP KEVIN LUM PRESIDENT OF THE FLIGHT ATTENDANTS UNION SAID THAT IN ADDITION TO CONCESSIONS OF 335 BILLION OVER FIVE YEARS THE TALKS RECENTLY FOCUSED ON SETTING UP THE CARRIER WITHIN A CARRIER INTENDED TO COMPETE ON SHORTER ROUTES WITH CARRIERS SUCH AS SOUTHWEST AIRLINES A UNION COALITION OF PILOTS MACHINISTS AND FLIGHT ATTENDANTS WAS SEEKING A MAJORITY STAKE IN UAL IN RETURN FOR THE GIVEBACKS ALTHOUGH THE FLIGHT ATTENDANTS' LOWER COMPENSATION MEANT THEY WERE CONTRIBUTING JUST 125 OF THE CONCESSIONS THEIR DEPARTURE MAKES IT HARDER IF NOT IMPOSSIBLE TO SET UP THE NEW CARRIER THAT UNITED'S MANAGEMENT AS PUSHING FOR WHEN UNITED HAD FLOATED THE IDEA OF A SPINOFF OF ITS SHORTER ROUTES TO A NONUNION AIRLINE EARLIER THIS YEAR ITS UNIONS REACTED WITH OUTRAGE INDIVIDUALS CLOSE TO THE TALKS SAID UNITED MADE A PROPOSAL FOR COOPERATION IN AN AIRLINE WITHIN AN AIRLINE IN LATE AUGUST MORE THAN A MONTH AFTER THE CONCESSIONSFORSTOCK TALKS BEGAN AS THESE INDIVIDUALS DESCRIBED IT THE NEW AIRLINE WOULD FLY ROUTES OF LESS THAN 500 MILES HIRE NEW EMPLOYEES AT COSTS BELOW TODAY'S LOWEST LEVELS AT UNITED AND GROW AS LARGE AS 125 PLANES IN FIVE YEARS THE UNIONS MADE A DETAILED PROPOSAL ON THEIR CONCESSIONS TO START THE CARRIER AT A MEETING WITH UNITED MANAGEMENT IN NEW YORK EARLIER THIS WEEK STEVE WOLF DECIDED TODAY THAT ALL THAT DROPPED INTO THE TOILET ALLEGED MR LUM REFERRING TO UAL'S CHAIRMAN AND THE DECISION TO OPEN THE FLIGHT ATTENDANTS BASE IN TAIWAN UNITED CONFIRMED IN A STATEMENT THAT IT OPENED THE BASE IN TAIWAN IT ADDED UNITED WILL CONTINUE TO MANAGE ITS BUSINESS AND TAKE THE NECESSARY STEPS THAT MEET ITS OPERATIONAL NEEDS WHILE REMAINING FULLY RECEPTIVE TO CONTINUE ITS DISCUSSIONS WITH THE UNITED AIRLINES UNION COALITION TO ADDRESS THE SERIOUS ECONOMIC AND COMPETITIVE ISSUES FACING THE AIRLINE A SPOKESMAN SAID HE COULDN'T ELABORATE UNITED ISN'T IN THE DIRE FINANCIAL SHAPE THAT CARRIERS SUCH AS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC AND TRANS WORLD AIRLINES WERE IN WHEN THEY NEGOTIATED CONCESSIONSFORSTOCK AGREEMENTS WITH THEIR UNIONS UNITED MADE A SMALL PROFIT IN THE SECOND QUARTER AND HAS A LARGE CASH CUSHION BUT THE CARRIER IS A LONG WAY FROM EFFECTIVELY COUNTERING THE THREAT OF LOWCOST COMPETITORS SUCH AS SOUTHWEST IF THE FLIGHT ATTENDANTS DON'T CHANGE THEIR MINDS THE PILOTS AND THE MACHINISTS COULD CONTINUE NEGOTIATING ON THEIR OWN HOPING THAT NONCONTRACT EMPLOYEES SIGN ON INDEED IN THE LONG HISTORY OF ONAGAIN OFFAGAIN EFFORTS BY UNITED'S UNIONS TO ACQUIRE THE CARRIER THE PILOTS UNION HAS SOMETIMES TRIED TO GO IT ALONE IN A RECORDED MESSAGE TO ITS MEMBERS THE UNITED UNIT OF THE AIR LINE PILOTS ASSOCIATION SAID LAST NIGHT THAT THE WITHDRAWAL OF THE FLIGHT ATTENDANTS WOULD MAKE THE COMPLETION OF A TRANSACTION MORE DIFFICULT AND LESS CERTAIN BUT ALPA ADDED THAT IT AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS AGREED TO CONTINUE OUR JOINT EFFORTS TO OBTAIN SUBSTANTIAL MAJORITY OWNERSHIP FOR PARTICIPATING EMPLOYEE GROUPS BUT UNITED MIGHT BACK AWAY AND GO AHEAD WITH ITS INTENSIVE PROGRAM OF CUTTING COSTS ANY WAY IT CAN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE UAL'S SHARES CLOSED DOWN 3625 AT 141 AS OTHER AIRLINE ISSUES DECLINED THE SHARES WERE TRADING BELOW 130 WHEN SPECULATION OF AN EMPLOYEE BUYOUT FIRST HIT THE STOCK MARKET IN MIDJULY MR LUM OF THE FLIGHT ATTENDANTS' UNION SAID THE WITHDRAWAL FROM THE TALKS WAS A DIRECT RESULT OF UNITED'S DECISION TO BASE UP TO 200 FLIGHT ATTENDANTS IN TAIPEI TAIWAN THE AIRLINE WHICH HAS OPENED SUCH BASES IN LONDON AND PARIS HAD POSTPONED OPENINGS OF THE TAIWAN BASE WHILE THE UNION NEGOTIATIONS CONTINUED MR LUM SAID UNITED ALSO PLANS TO OPEN A FLIGHT ATTENDANT BASE IN HONG KONG AND THAT HIS UNION HAD TOLD UNITED IT WOULD WITHDRAW FROM THE TALKS IF THE TAIWAN BASE OPENED UNITED FLIGHT ATTENDANTS IN THE US ARE GIVEN THE OPPORTUNITY TO TRANSFER ABROAD AND CONTINUE AT CURRENT WAGES BUT BECAUSE FEW WANT TO DO SO THE UNION SEES OPENING THE FOREIGN BASES AS A MOVE TO GET RID OF HIGHERPAID SENIOR FLIGHT ATTENDANTS IN THE US IN FAVOR OF LOWERPAID JUNIOR FLIGHT ATTENDANTS ABROAD NO ONE IS INTERESTED IN BUYING THE AIRLINE IF THE COMPANY IS DISMANTLING IT MR LUM SAID UNITED HAS TAKEN OR CONSIDERED MANY STEPS IN RECENT MONTHS TO CUT COSTS AND THE UNIONS HAVE SEEN MANY AS THREATS EARLIER THIS MONTH UNITED REACHED A LONGDISCUSSED AGREEMENT TO SELL 15 OF ITS US FLIGHT KITCHENS WHICH EMPLOY MEMBERS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS BUT THE AIRLINE SAID THE 1194 MILLION SALE TO THE DOBBS INTERNATIONAL SERVICES UNIT OF DIAL CORP COULD BE TERMINATED BEFORE NOV 13 IF THE MACHINISTS AGREE TO CONCESSIONS TO LOWER COSTS AT THE KITCHENS 9309300085 930930 REACTION IN GOP VARIES TO MRS CLINTON'S APPEAL WASHINGTON FIRST LADY HILLARY RODHAM CLINTON WON SUPPORT FOR THE CLINTON ADMINISTRATION'S HEALTHCARE PLAN FROM ONE REPUBLICAN AND SQUELCHED ANOTHER DURING APPEARANCES ON CAPITOL HILL SEN JIM JEFFORDS R VT ANNOUNCED HE WOULD COSPONSOR THE CLINTON PLAN BECOMING THE FIRST REPUBLICAN IN CONGRESS TO DO SO I AM PLEASED TO BE THE FIRST BUT I AM ABSOLUTELY CONFIDENT I WILL NOT BE THE LAST MR JEFFORDS SAID AFTER MRS CLINTON'S APPEARANCE BEFORE THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE BUT HE ADDED HE STILL HAS CONCERNS OVER SOME ELEMENTS OF THE PLAN AND WOULD LIKE TO SEE SOME CHANGES IN THE FINANCING AREA REP RICHARD ARMEY COULDN'T SHARE SEN JEFFORDS'S ENTHUSIASM WHEN MRS CLINTON APPEARED BEFORE THE HOUSE EDUCATION AND LABOR COMMITTEE THE TEXAS REPUBLICAN WHO HAS CRITICIZED THE PLAN OFFERED TO DO HIS PART TO MAKE THE DEBATE OVER THE PACKAGE AS INTERESTING AS POSSIBLE I'M SURE YOU WILL YOU AND DR KEVORKIAN MRS CLINTON COUNTERED PRODUCING LOUD LAUGHTER THE REFERENCE TO THE SOCALLED SUICIDE DOCTOR ALLUDES TO A REPORT REP ARMEY RELEASED THIS YEAR CALLING PART OF THE CLINTON PROPOSAL A DR KEVORKIAN PLAN FOR JOBS REP ARMEY BLUSHED BUT RECOVERED QUICKLY SAYING THE REPORTS ON MRS CLINTON'S WIT WERE UNDERSTATED 9309300084 930930 AMERICAN AIRLINES REJECTS ARBITRATION IN LABOR TALKS FORT WORTH TEXAS AMERICAN AIRLINES REJECTED A FEDERAL MEDIATOR'S OFFER OF ARBITRATION IN ITS CONTRACT TALKS WITH FLIGHT ATTENDANTS A MOVE THAT TRIGGERED A 30DAY COUNTDOWN FOR THE TWO SIDES TO TRY TO REACH A SETTLEMENT THE COOLINGOFF PERIOD EXPIRES AT MIDNIGHT OCT 29 AFTER WHICH THE AMR CORP UNIT CAN IMPOSE ITS LAST CONTRACT OFFER OR AMERICAN'S 21000 FLIGHT ATTENDANTS WILL BE FREE TO STRIKE THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS MAILED STRIKE BALLOTS TO ITS MEMBERS AFTER LABOR DAY VOTES AREN'T SCHEDULED TO BE COUNTED UNTIL OCT 15 THE TWO SIDES APPEAR TO BE FAR APART AMERICAN SAYS THE UNION'S DEMANDS WOULD INCREASE THE CARRIER'S COSTS BY MORE THAN 500 MILLION A YEAR THE UNION SAYS IT HAS DROPPED OR MODIFIED MORE THAN 100 PROPOSALS THAT WERE ON THE TABLE AND THE LEVEL OF MOVEMENT BY THE COMPANY IS INCREMENTAL AMERICAN'S CONTRACT PROPOSAL INCLUDES SLIDING PAY INCREASES FOR WORKERS WITH LESS SENIORITY A 4 SIGNING BONUS AND AN EARLY RETIREMENT PROGRAM FOR MORE SENIOR FLIGHT ATTENDANTS IN RETURN THE AIRLINE HAS ASKED FOR A CHANGE TO STAFFING AND SCHEDULING RULES THE FLIGHT ATTENDANTS HOWEVER SAY THAT THE PAY INCREASES WORK OUT TO PAY CUTS ONCE CHANGES IN VACATION AND OTHER BENEFITS ARE FACTORED IN AND THEY CLAIM THAT STAFFING REQUIREMENTS COULD END UP CUTTING THE FLIGHT ATTENDANT WORK FORCE BY AS MUCH AS 15 9309300083 930930 ECONOMY ECONOMY SLOWED SHARPLY IN FIRST HALF BUT FASTER PACE IS SEEN FOR REST OF YEAR BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY SLOWED CONSIDERABLY IN THE FIRST HALF OF THE YEAR THE LATEST GOVERNMENT FIGURES CONFIRM BUT ANALYSTS EXPECT GROWTH TO BE QUICKER IN THE ENSUING TWO QUARTERS THE COMMERCE DEPARTMENT SAID GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US GREW AT A REVISED 19 ANNUAL RATE IN THE SECOND QUARTER AFTER INCREASING AT A 08 PACE IN THE FIRST PERIOD THE NEW SECONDQUARTER FIGURE IS ONLY SLIGHTLY HIGHER THAN THE DEPARTMENT'S PREVIOUS ESTIMATE OF 18 THE FIRST HALF OF THIS YEAR WAS MUCH WEAKER THAN THE LAST HALF OF 1992 GDP HAVING GROWN AT A SCANT 14 ANNUAL RATE IN THE FIRST SIX MONTHS AFTER A PACE OF MORE THAN 46 IN THE SECOND HALF LAST YEAR BUT SEVERAL ANALYSTS ESTIMATE THAT GROWTH WILL BE IN THE 30 AREA FOR THE LAST HALF OF THIS YEAR THEY SAY CONSUMER SPENDING THE HOUSING SECTOR AUTO PRODUCTION AND THE REBUILDING OF INVENTORIES WILL HELP TO PUSH THE ECONOMY ALONG IN ADDITION THEY DOUBT THAT SAGGING EXPORTS WILL PUT AS MUCH OF A DRAG ON THE ECONOMY AS THEY DID IN THE FIRST AND SECOND QUARTERS WE ARE GOING TO SEE A SUBSTANTIAL PICKUP IN THE SECOND HALF SAID JOHN MUELLER CHIEF ECONOMIST OF LEHRMAN BELL MUELLER CANNON INC AN ECONOMIC CONSULTING FIRM IN ARLINGTON VA MR MUELLER SAID HE THINKS ONE REASON THE ECONOMY IS GROWING IN FITS AND STARTS IS THAT THE FEDERAL RESERVE ACTED IN SEVERAL SMALL STEPS TO HELP GET THE ECONOMY MOVING AGAIN INSTEAD OF MAKING ONE BIG CUT IN INTEREST RATES THAT SET UP A RIPPLE EFFECT IN THE ECONOMY HE SAID THE REASON FOR THE COMMERCE DEPARTMENT'S SMALL REVISION TO SECONDQUARTER GROWTH IS THAT CAPITAL SPENDING AND CONSUMER SPENDING WERE STRONGER THAN PREVIOUSLY ESTIMATED THAT GROWTH WAS OFFSET BY A LARGER DETERIORATION IN THE TRADE DEFICIT THAN ORIGINALLY ESTIMATED BECAUSE OF SLOWER EXPORT GROWTH THE INFLATION PICTURE IN THE REPORT REMAINED ENCOURAGING THE FIXEDWEIGHTED PRICE INDEX WAS UP AT A 29 ANNUAL RATE IN THE SECOND QUARTER COMPARED WITH 43 IN THE FIRST ALSO US CORPORATIONS POSTED STRONGER AFTERTAX PROFITS THAN PREVIOUSLY THOUGHT RISING A REVISED 52 IN THE SECOND QUARTER AFTER A 16 INCREASE IN THE FIRST PRELIMINARY ESTIMATES PUT THE RATE AT 21 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE SECOND QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1240 FROM 1233 IN THE PREVIOUS QUARTER 9309300082 930930 WESTCOAST ENERGY CHINA PROJECT VANCOUVER BRITISH COLUMBIA WESTCOAST ENERGY INC SAID IT PLANS TO BUILD A 20 MILLION US COGENERATION PLANT IN CHINA ABOUT 400 MILES WEST OF BEIJING THE VANCOUVER GAS UTILITY SAID ITS SUBSIDIARY WESTCOAST POWER INC SIGNED A LETTER OF INTENT WITH A UNIT OF CHINA'S STATEOWNED CHINA NATIONAL PETROLEUM CORP TO FORM A JOINT VENTURE FOR THE PROJECT WHICH IS SLATED TO START UP IN THE FALL OF 1995 A WESTCOAST SPOKESMAN SAID THE COGENERATION PROJECT WOULD BE THE COMPANY'S FIRST OVERSEAS OPERATION OUTSIDE OIL AND GAS EXPLORATION A BUSINESS THAT WESTCOAST IS NO LONGER INVOLVED IN 9309300081 930930 HOUSE PANEL VOTES TO EXTEND BENEFITS FOR THE JOBLESS BY GREG HITT SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE HOUSE WAYS AND MEANS COMMITTEE APPROVED A 1 BILLION EXTENSION OF THE EMERGENCY UNEMPLOYMENT BENEFITS PROGRAM THE EXTENSION WHILE LESS GENEROUS THAN PRESIDENT CLINTON ORIGINALLY WANTED DOES CONTAIN AN ADMINISTRATIONSUPPORTED PROPOSAL MANDATING REEMPLOYMENT ASSISTANCE FOR THE LONGTERM UNEMPLOYED THE SOCALLED WORKER PROFILING PLAN IS MODELED ON A NEW JERSEY DEMONSTRATION PROJECT AND IS BEING TRUMPETED AS AN IMPORTANT STEP TO RESTRUCTURING THE ENTIRE UNEMPLOYMENT COMPENSATION PROGRAM THE PLAN WOULD REQUIRE STATES TO IDENTIFY PERMANENTLY DISLOCATED WORKERS AND PROVIDE THEM WITH JOB SEARCH AND TRAINING ASSISTANCE WE CAN HELP WORKERS MAKE THE TRANSITION TO NEW JOBS MORE QUICKLY AND AT THE SAME TIME HELP STATES SAVE MONEY SAID LABOR SECRETARY ROBERT REICH THE BILL APPROVED ON A VOICE VOTE YESTERDAY BY THE COMMITTEE WOULD PROVIDE SEVEN TO 13 WEEKS OF BENEFITS TO WORKERS WHO HAVE EXHAUSTED STATE JOBLESS ASSISTANCE AND EXTEND FOR FOUR MONTHS THE PERIOD IN WHICH TO APPLY THE CURRENT EMERGENCY PROGRAM IS SET TO EXPIRE THIS WEEK THE HOUSE COULD TAKE UP THE BILL AS EARLY AS TODAY THE MEASURE DRAFTED IN CONSULTATION WITH THE WHITE HOUSE REFLECTS THE POLITICAL REALITY THAT IT COULDN'T BE FINANCED WITH DEFICIT SPENDING OR NEW TAXES THIS IS OBVIOUSLY SCROUNGING SAID REP MIKE KOPETSKI D ORE THE MEASURE WOULD BE PAID FOR OVER FIVE YEARS BY SAVING 333 MILLION WITH A MINOR CHANGE IN THE SUPPLEMENTAL SECURITY INCOME PROGRAM AND 764 MILLION WITH IMPLEMENTATION OF THE WORKER PROFILING PLAN ACCORDING TO THE CONGRESSIONAL BUDGET OFFICE THE ADMINISTRATION CLAIMS THAT WORKER PROFILING WOULD GET PEOPLE OFF GOVERNMENT ASSISTANCE MORE QUICKLY REDUCING OUTLAYS FOR UNEMPLOYMENT COMPENSATION THE CBO AND THE CLINTON ADMINISTRATION DIFFER IN THEIR ESTIMATES OF THE BUDGET IMPACT OF THE WORKER PROFILING PLAN THE CBO PROJECTS THE PLAN WOULD COST MORE TO IMPLEMENT 897 MILLION IN INCREASED APPROPRIATIONS THAN IT WOULD SAVE OVER THE NEXT FIVE YEARS THE WHITE HOUSE BUDGET OFFICE HOWEVER CONTENDS THERE IS NO NEED FOR INCREASED SPENDING SINCE THE LABOR DEPARTMENT PLANS TO COVER ANY ADMINISTRATIVE COSTS WITH EXPENDITURES PREVIOUSLY APPROVED BY CONGRESS 9309300080 930930 MARKETING & MEDIA BT CLEARS A HURDLE IN BID TO SEND MOVIES TO HOME TELEVISIONS LONDON BRITISH TELECOMMUNICATIONS PLC WON A KEY REGULATORY DECISION THAT COULD ALLOW IT TO TRANSMIT MOVIES TO HOME TELEVISIONS OVER ITS PHONE LINES SETTING THE STAGE FOR A BATTLE WITH CABLETELEVISION OPERATORS THE DECISION BY BRITAIN'S INDEPENDENT TELEVISION COMMISSION BRINGS CLOSER A LOOMING SHOWDOWN THAT MAY BE REPEATED IN THE US AND ELSEWHERE OVER THE EXTENT TO WHICH TELEPHONE COMPANIES WILL BE ABLE TO COMPETE WITH CABLE OPERATORS IN THE ENTERTAINMENT INDUSTRY THE STAKES ARE HIGH BECAUSE MANY BELIEVE NEW VIDEO SERVICES VIA PHONE COULD BE VERY POPULAR THE FLEDGLING BRITISH CABLETV INDUSTRY ALREADY GENERATES REVENUE OF MORE THAN 100 MILLION 151 MILLION A YEAR AND IS INVESTING HEAVILY IN NEW FIBEROPTIC TECHNOLOGIES TO PROVIDE THE KINDS OF SERVICES BT IS PLANNING SOURCES CLOSE TO BT WHICH OFFICIALLY SAID ONLY THAT IT WELCOMES THE DECISION INDICATED THAT THE COMPANY HOPES TO TEST SOMETIME NEXT YEAR A VIDEOONDEMAND SERVICE ENABLING CUSTOMERS TO ORDER MOVIES WHEN THEY WANT TO SEE THEM HOWEVER BRITAIN'S CABLE INDUSTRY ISSUED A STATEMENT CRITICIZING THE ITC DECISION AND INDICATED THAT IT MAY CHALLENGE BT IN COURT IF IT SEEKS TO PROCEED WITH A SERVICE IN DISPUTE IS WHETHER VIDEOONDEMAND IS BROADCAST ENTERTAINMENT WHICH BT IS PROHIBITED FROM PROVIDING UNDER UK LAW BT MAINTAINS THAT VIDEOONDEMAND ISN'T BROADCASTING BECAUSE IT DOESN'T INVOLVE SENDING A SIGNAL FROM ONE POINT TO NUMEROUS POINTS SIMULTANEOUSLY THE ITC IN ITS RULING SIDED WITH BT SAYING THAT BT ISN'T PROHIBITED FROM THE CONVEYANCE OF VIDEOONDEMAND SERVICE AND THUS WOULDN'T HAVE TO GET A LOCALDELIVERY LICENSE TO OFFER SUCH A SERVICE IT SAID OTHER REGULATORY AGENCIES AGREED HOWEVER IT ACKNOWLEDGED THE ISSUE IS ONE WHICH COULD BE RESOLVED DEFINITIVELY ONLY BY THE COURTS 9309300079 930930 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPANESE MANUFACTURERS' SHIPMENTS IN 1992 FELL FOR THE FIRST TIME IN FIVE YEARS AND THEIR VALUE DROPPED 33 TO 3144 TRILLION IN A GOVERNMENT SURVEY OF 415109 PLANTS ACCOUNTING FOR ABOUT 80 OF THE COUNTRY'S SHIPMENTS OF MANUFACTURED GOODS 18 OF 22 INDUSTRIES LOGGED DECLINES WITH THE BIGGEST FOR ELECTRIC MACHINERY FOLLOWED BY TRANSPORTATION EQUIPMENT THE PRODUCERS' TOTAL WORK FORCE FELL 17 TO 112 MILLION AND CAPITAL SPENDING SHRANK 12 TO 15955 BILLION BOTH MARKING THE FIRST YEARTOYEAR DROPS IN FIVE YEARS MEANWHILE MERGERS AND ACQUISITIONS INVOLVING JAPANESE COMPANIES IN THIS YEAR'S FIRST NINE MONTHS TOTALED 311 DEALS DOWN 15 FROM A YEAR EARLIER AND THEIR VALUE SANK 32 TO 32 BILLION ACQUISITIONS BY FOREIGN COMPANIES FELL TO 20 FROM 23 SEPARATELY IN THE LATEST SHIFTS TO LOWERCOST SITES ABROAD BECAUSE OF THE YEN'S STRENGTHENING HITACHI LTD WILL SPEND 50 MILLION TO EXPAND ITS SEMICONDUCTOR OUTPUT IN IRVING TEXAS AND NEC CORP MIGHT BOOST MICROCHIP PRODUCTION IN ROSEVILLE CALIF THE CZECH REPUBLIC BEGAN THE SECOND ROUND OF ITS PRIVATIZATION PROGRAM FURTHERING ITS TRANSITION TO CAPITALISM SINCE THE 1989 REVOLUTION COUPONS SELLING FOR 1000 CROWNS 35 ENTITLE BUYERS TO SHARES IN 770 ENTERPRISES VALUED AT 5 BILLION THE SELLOFF LIST INCLUDES VYCHODOCESKE CHEMICKE ZAVODY A CHEMICAL FIRM THAT MAKES SEMTEX PLASTIC EXPLOSIVES THE OSTRAVSKOKARVINSKE DOLY COAL MINES AND STP TELECOM WITH A PRAGUE TELECOMMUNICATIONS BUSINESS EXPECTED TO BOOM CHINESE OFFICIALS LEFT JAPAN IN PROTEST AFTER THE TOKYO INTERNATIONAL FILM FESTIVAL REFUSED THEIR REQUEST TO WITHDRAW TWO CHINESEDIRECTED FILMS THAT HADN'T BEEN APPROVED BY BEIJING'S COMMUNIST AUTHORITIES THE FILMS SHOWN AT OTHER FESTIVALS ARE TIAN ZHUANZHUAN'S THE BLUE KITE WHICH EXPLORES PAINFUL PERIODS IN CHINESE HISTORY AND ZHANG YUAN'S BEIJING BASTARDS FINANCED BY HONG KONG INTERESTS DEPICTING DESTITUTE LIVES OF MODERN YOUTH THE ANNUAL FESTIVAL IN TOKYO IS SCREENING 173 MOVIES FROM 20 COUNTRIES INCLUDING THREE OFFICIAL CHINESE ENTRIES A JAPANESE COMPANY CAN ORDER AN EMPLOYEE TO A LONGTERM ASSIGNMENT AWAY FROM HIS FAMILY AGAINST HIS WILL A TOKYO COURT RULED HARUO KAWAGUCHI 47 YEARS OLD SOUGHT 290000 IN COMPENSATION AFTER HIS CHEMICALCOMPANY EMPLOYER ORDERED HIM TO MOVE 190 MILES TO NAGOYA FROM KAWASAKI FOR SIX YEARS HE SAID THE TRANSFER VIOLATED HIS RIGHT TO LIVE WITH HIS WIFE WHO COULDN'T LEAVE HER JOB AND HELP RAISE HIS THREE CHILDREN THE COURT REJECTED THAT ARGUMENT SAYING TRANSFERS ARE A NORMAL BUSINESS PRACTICE SENIORITYBASED PAY DETERS MANY WORKERS FROM CHANGING JOBS TO STREAMLINE THE BRITISH ROYAL HOUSEHOLD'S PAY STRUCTURE QUEEN ELIZABETH II WITHDREW MOST PERQUISITES PALACE SERVANTS WILL STILL GET A FREE CHRISTMAS PUDDING BUT NO MORE FREE SOAP SHOE REPAIRS AND SUITS SUCH PERKS PART OF THE 33 MILLION ANNUAL COST TO RUN THE FIVE ROYAL PALACES WILL BE REPLACED BY EQUIVALENT CASH ALLOWANCES WHICH ARE TAXABLE THE CHANGE FOLLOWS THE REGENT'S MOVE A MONTH AGO TO BASE STAFF PAY INCREASES ON PERFORMANCE RATHER THAN SENIORITY NEWSPAPER REPORTERS IN ITALY STRUCK FOR THE SECOND TIME IN A WEEK AND UNIONS REPRESENTING DOCTORS AND FACTORY MANAGERS PLANNED WALKOUTS TO PROTEST THE GOVERNMENT'S AUSTERITY PLAN A HOST OF OTHER UNIONS ALSO PLAN JOB ACTIONS THAT WILL AFFECT AIR AND RAIL TRAVEL PUBLIC SERVICES AND SCHOOLS ANTAGONISM IS GROWING BETWEEN LABOR AND PREMIER CARLO CIAMPI WHO FAVORS SALES OF STATE COMPANIES AND DIMINISHED UNION POWER WHILE TRYING TO LOWER ITALY'S DEBT THROUGH NEW TAXES AND FEES BROADCAST JOURNALISTS WERE TO STRIKE TODAY ALITALIA PILOTS ON MONDAY AND RAIL WORKERS NEXT MONTH THE EUROPEAN COMMUNITY DETAILED ITS VISION OF A MIDEAST SINGLE MARKET SERVED BY NEW HIGHWAYS POWER GRIDS AND A PERSIAN GULFTOMEDITERRANEAN OIL PIPELINE EC OFFICIALS IN CAIRO SUGGESTED MIDEAST ECONOMIC PROJECTS THEY SAID COULD STRENGTHEN REGIONAL COOPERATION AND THUS MINIMIZE THE POTENTIAL FOR CONFLICTS AMONG PROJECTS LISTED AS CANDIDATES FOR FEASIBILITY STUDIES ARE REVIVAL OF THE 1930S TAPLINE PROJECT TO CARRY FIVE MILLION BARRELS OF GULF OIL A DAY TO THE ISRAELI PORT OF HAIFA A HIGHWAY SYSTEM LINKING MIDEAST CAPITALS AND THE REGION TO EUROPE THROUGH TURKEY AN 800MEGAWATT HYDROPOWER PROJECT INVOLVING ISRAEL JORDAN AND THE OCCUPIED TERRITORIES A PALESTINIANISRAELI COMMERCIAL WATER CORPORATION AND A FREE TRADE AND LABOR MARKET BY THE YEAR 2010 THE EC HAS A KEEN INTEREST IN STABILITY IN THE MIDEAST ON THE 12NATION TRADE BLOC'S SOUTHERN FLANK AS A STRONGER REGIONAL ECONOMY COULD STEM FLOWS OF EMIGRANTS THAT STRAIN EUROPEAN COUNTRIES THE SAISON GROUP OF JAPAN WHICH OWNS THE INTERCONTINENTAL HOTELS CHAIN SAID IT WOULD REOPEN ITS 600ROOM PHOENICIA IN BEIRUT IN 199520 YEARS AFTER LEAVING LEBANON BECAUSE OF CIVIL WAR THE CHAIN WITH 17 MIDEAST HOTELS MAY EXPAND TO TEHRAN AND ISRAEL IF REGIONAL PEACE PROSPECTS LEAD TO INCREASED TOURISM THE FIRST ITALIAN RESTAURANT IN NORTH KOREA WHERE FOOD IS RATIONED FOR ORDINARY CITIZENS OPENED IN PYONGYANG THE CAPITAL WITH PIZZA AND SPAGHETTI ON THE MENU 9309300078 930930 WORLD MARKETS TOKYO PRICES DROP ON POORER PROFIT FORECASTS LONDON SHARES FALL ON CORPORATE TAX MOVES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES FELL BROADLY WEDNESDAY THOUGH BUYING BY PUBLIC PENSION FUNDS AND INVESTMENT TRUSTS LIMITED THE LOSSES LONDON STOCKS FELL AS INVESTORS RAN FOR COVER ON NEWS OF CORPORATIONS TAPPING THE MARKET FOR CASH AND THE BRITISH GOVERNMENT OUTLINING THE NEED FOR A TAX INCREASE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11147 DOWN 033 REFLECTING DECREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11461 UP 381 OR 34 WITH BAKER HUGHES OF THE US POSTING A 45 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 9156 DOWN 152 OR 16 WITH NIPPON SUISAN OF JAPAN SLIDING 35 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 7861 POINTS TUESDAY DROPPED 9531 TO 2007741 ON THURSDAY THE NIKKEI INDEX ROSE 4120 POINTS TO CLOSE THE MORNING SESSION AT 2011861 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES UP FROM 2346 MILLION SHARES A DAY EARLIER LOSERS SWAMPED GAINERS 625368 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 271 POINTS TUESDAY DECLINED 521 TO 161786 SELLING PRESSURE WAS STRONG BUT LATE BUYING ENABLED THE NIKKEI TO FINISH ABOVE 20000 CONSIDERED A TECHNICAL AND PSYCHOLOGICAL SUPPORT LEVEL THE INDEX FELL BELOW THAT MARK IN THE FIRST HOUR OF TRADING AND THE LACK OF A STRONG BUYING REACTION SURPRISED MANY PARTICIPANTS BUT AS THE INDEX HIT ITS INTRADAY LOW OF 1992769 AND SEEMED POISED TO CONTINUE FALLING PUBLIC PENSION FUNDS AND INVESTMENT TRUSTS STEPPED IN AND SAVED THE NIKKEI FROM FOUNDERING FURTHER THE SESSION HIGH WAS 2015672 MARKET SENTIMENT WAS HURT AFTER SOME BIG COMPANIES SUCH AS MAKERS OF CONSUMER ELECTRONIC GOODS ANNOUNCED THE PREVIOUS DAY SHARPERTHANEXPECTED REDUCTIONS IN THEIR EARNINGS FORECASTS A STRONG REMINDER OF THE LACK OF EARNINGS GROWTH THAT IS PLAGUING MAJOR CORPORATIONS IN JAPAN STEELMAKERS WERE WEAK FOLLOWING REPORTS THAT MAJOR COMPANIES IN THE SECTOR WILL LAY OFF WORKERS TEMPORARILY TO WEATHER THE INDUSTRY SLUMP EUPHORIA OVER PHARMACEUTICALS WHICH HAVE BEEN BOOSTED RECENTLY WANED SLIGHTLY RETAILERS SUCH AS DEPARTMENT STORES CONTINUED TO RISE AS THEY ARE LIKELY TO BENEFIT FROM DEREGULATION MEASURES AND A POSSIBLE INCOMETAX CUT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 68 POINTS TO 30301 THE FT30 INDEX FELL 59 POINTS TO 23236 VOLUME WAS 5117 MILLION SHARES DOWN FROM 6032 MILLION SHARES A DAY EARLIER AT ITS WEAKEST POINT THE FTSE 100 WAS DOWN 143 POINTS AND AT ITS PEAK UP JUST 18 POINTS PRICES WERE UNDER PRESSURE FROM THE OPENING WHEN COMPANIES UNVEILED LIQUIDITYDRAINING CASH CALLS TAPPING THE MARKET THROUGH STOCK SALES WHICH HAD BECOME INFREQUENT LATELY AS WELL AS NEW STOCK PLACEMENTS AND A GOVERNMENT OFFICIAL'S DECLARATION OF A PREFERENCE IN THE NOVEMBER BUDGET FOR AN INCREASE IN THE CONSUMPTION OR VALUEADDED TAX RATHER THAN AN INCOMETAX BOOST DEPRESSED SOME CONSUMER STOCKS THE PHARMACEUTICAL SECTOR FELL AGAIN AS INVESTORS CONTINUED TO DIGEST IMPLICATIONS OF THE PROPOSED OVERHAUL OF THE US HEALTHCARE SYSTEM BUT TELECOMMUNICATIONS STOCKS GAINED ON A REGULATORY CLEARANCE FOR SUPPLYING VIDEOS ON DEMAND TO BRITISH HOUSEHOLDS PESSIMISM INTENSIFIED BECAUSE OF A LESSTHANENTHUSIASTIC RESPONSE TO THE BRITISH GOVERNMENT'S GILT OR BOND AUCTION EARLY YESTERDAY THOUGH THE AUCTION RESULTS DEPRESSED THE GILT MARKET INITIALLY BARGAINHUNTERS HELPED PRICES RECOVER TOWARD THE CLOSE LIKEWISE THE STOCK MARKET IMPROVED IN AFTERNOON DEALINGS IN FRANKFURT STOCK PRICES FELL ENDING NEAR THE DAY'S LOWS IN TRADING THAT WAS SLUGGISH AND STUCK WITHIN A NARROW RANGE THE DAX 30STOCK DECLINED 592 POINTS TO 190769 FIVE ISSUES ADVANCED AND 25 RETREATED MANY PARTICIPANTS BELIEVED THE MARKET HAD NOWHERE TO GO FOR NOW WITH CURRENT PRICES PROVIDING NEITHER BUYING OPPORTUNITIES NOR ATTRACTIVE SELLING SCENARIOS THE WEAKENING OF THE US DOLLAR AGAINST THE GERMAN MARK SINCE THE RUSSIAN POLITICAL TURMOIL BEGAN CAUSED SOME INVESTORS TO WORRY THAT A FURTHER SOFTENING OF THE US CURRENCY COULD CAUSE A CORRECTION IN THE DAX ONLY RECURRING HOPES OF INTERESTRATE CUTS WERE VIEWED AS FODDER TO IGNITE A MARKET CLIMB IN PARIS STOCKS EDGED HIGHER FOR THE FOURTH CONSECUTIVE SESSION BOUNCING UP FROM NEGATIVE TERRITORY LATE IN THE DAY WHEN OPTIONSCONTRACT EXPIRATIONS GAVE THE MARKET A BOOST IN AMSTERDAM SHARE PRICES DROPPED LARGELY BECAUSE OF PROFITTAKING AND A WEAKER DOLLAR AS WELL AS WALL STREET'S EARLY SOFTNESS IN ZURICH EARLY GAINS GAVE WAY TO CONTINUED CONCERNS ABOUT RUSSIAN POLITICAL TENSIONS AND STOCKS FINISHED MIXED IN STOCKHOLM SHARES DECLINED AS THE MARKET WAS TRENDLESS FOR THE SECOND DAY IN A ROW IN SYDNEY WHERE TRADING WAS MOSTLY SUBDUED SHARE PRICES STAGED A LATE RALLY TO CLOSE MODERATELY HIGHER AS OVERSEAS INVESTORS APPEARED TO HAVE RETURNED TO THE MARKET IN HONG KONG STOCKS GAINED SOLIDLY AS EXPIRING INDEX FUTURES DROVE THE MARKET IN AN OTHERWISE QUIET SESSION IN TAIPEI EQUITIES FELL SLIGHTLY FOR THE THIRD CONSECUTIVE DECLINE LED BY SHARP LOSSES IN FINANCIAL ISSUES AMONG CORPORATE DEVELOPMENTS IN LONDON GRAND METROPOLITAN EASED 2 PENCE TO 416 PENCE 630 AND SCOTTISH & NEWCASTLE LOST 11 OR 23 TO 459 GRAND MET A FOOD COMPANY AGREED TO SELL ITS CHEF & BREWER CHAIN OF 1654 PUBLIC DRINKING HOUSES TO SCOTTISH & NEWCASTLE BRITAIN'S FIFTHLARGEST BREWER FOR 622 MILLION 9414 MILLION AND THE ASSUMPTION OF SOME DEBT GRAND MET ALSO WILL SELL TO SCOTTISH & NEWCASTLE PROPERTY INTERESTS OWNED BY INNTREPRENEUR ESTATES WHICH IS 50OWNED BY GRAND MET FOR 94 MILLION SCOTTISH & NEWCASTLE WILL RAISE 405 MILLION TOWARD THE PURCHASE WITH A RIGHTS ISSUE OFFERING ONE NEW SHARE FOR EVERY FOUR OWNED AT 390 PENCE A SHARE IN MILAN FIAT COMMON PLUNGED 302 LIRE OR 51 TO 5598 LIRE 355 AND PREFERRED SKIDDED 251 OR 76 TO 3044 THE PUNISHMENT WHICH PULLED DOWN THE BROAD MARKET FOLLOWED THE INDUSTRIAL GIANT'S ANNOUNCEMENT TUESDAY IT WOULD RAISE 5 TRILLION LIRE 317 BILLION PARTLY THROUGH A 3683 TRILLIONLIRE RIGHTS ISSUE OF NEW STOCK AND A SHARE SWAP FOR ITS 58 STAKE IN THE RETAILER RINASCENTE OTHER PUBLICLY TRADED HOLDINGS OF FIAT ALSO TUMBLED AS DID COMPANIES WITH STAKES IN FIAT 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 9309300077 930930 AN UNPREDICTABLE JURIST BY MARGARET A JACOBS CONSIDERED BRIGHT HARDWORKING AND PRACTICAL THE JUDGE IN THE WORLD TRADE CENTER BOMBING TRIAL KEVIN T DUFFY IS ALSO VIEWED AS SOMEWHAT TESTY AND UNPREDICTABLE BY ATTORNEYS JUDGE DUFFY A 60YEAROLD BRONX NY NATIVE HAS ALREADY COURTED CONTROVERSY IN THE TRADE CENTER CASE BY REFUSING TO ASSIGN VETERAN LAWYERS ALLIED WITH WILLIAM KUNSTLER TO REPRESENT ONE OF THE DEFENDANTS CLAIMING THE LAWYERS HAD CIRCUMVENTED ESTABLISHED RULES IN ADDITION HE HAS CLAMPED A GAG ORDER ON LAWYERS IN THE CASE ONLY TO SEE IT REVOKED BY THE FEDERAL APPEALS COURT DURING JURY SELECTION IN THE BOMBING CASE JUDGE DUFFY HAS FREQUENTLY DISCOURSED ON A RANGE OF TOPICS INCLUDING HIS FAMILY AND CHILDHOOD SOME LAWYERS CONTEND THAT HE PLAYS TOO MUCH TO THE JURY AND SPECTATORS SOMETIMES UNNECESSARILY BERATING LAWYERS IN PUBLIC STILL MOST SAY THEY BELIEVE HE IS GENERALLY FAIR AND IMPARTIAL A GRADUATE OF FORDHAM COLLEGE AND ITS LAW SCHOOL JUDGE DUFFY WAS APPOINTED TO THE BENCH 21 YEARS AGO BY PRESIDENT RICHARD M NIXON BEFORE THAT HE WAS NEW YORK REGIONAL ADMINISTRATOR OF THE SECURITIES AND EXCHANGE COMMISSION SEE RELATED ARTICLE LAW LEGAL BEAT THREATS TENSION ELECTRIFY TRADE CENTER TRIAL WSJ SEPT 30 1993 9309300076 930930 MACY GETS EXTENSION FOR PLAN NEW YORK RH MACY & CO SAID IT RECEIVED AN EXTENSION OF ITS EXCLUSIVE PERIOD IN WHICH TO FILE A PLAN FOR REORGANIZATION WITH FEDERAL BANKRUPTCY COURT TO MARCH 15 THE RETAILER HAS BEEN OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE JAN 27 1992 9309300075 930930 WHO'S NEWS PROMUS FORMS A DIVISION MEMPHIS TENN PROMUS COS SAID IT CREATED A DIVISION TO OVERSEE ITS THREE HOTEL COMPANIES AND APPOINTED RAY SCHULTZ AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNIT MR SCHULTZ WILL BE RUNNING PROMUS HOTELS THE DIVISION COMPRISING EMBASSY SUITES HAMPTON INN AND HOMEWOOD SUITES MR SCHULTZ PREVIOUSLY WAS PRESIDENT AND CHIEF EXECUTIVE OF HAMPTON INN AND HOMEWOOD SUITES DAVID SULLIVAN WHO WAS SENIOR VICE PRESIDENT DEVELOPMENT AND OPERATIONS FOR HAMPTON INN AND HOMEWOOD SUITES WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF PROMUS HOTELS PROMUS ALSO SAID STEVE GREATHOUSE WILL ASSUME THE NEW POSITION OF PRESIDENT OF HARRAH'S CASINO HOTEL DIVISION OVERSEEING PROPERTIES IN NEVADA AND IN ATLANTIC CITY NJ MR GREATHOUSE HAD BEEN PRESIDENT OF HARRAH'S SOUTHERN NEVADA AND GENERAL MANAGER OF HARRAH'S LAS VEGAS 9309300073 930930 WHO'S NEWS HILLHAVEN TAPS BUSBY TO SUCCEED EAMER IN CHAIRMAN'S POST TACOMA WASH HILLHAVEN CORP SAID ITS BOARD ELECTED HILLHAVEN'S CHIEF EXECUTIVE OFFICER BRUCE L BUSBY TO THE POST OF CHAIRMAN OF THE NURSINGHOME OPERATOR MR BUSBY 49 YEARS OLD SUCCEEDS RICHARD K EAMER WHO RESIGNED SEPT 15 MR EAMER'S SEAT ON HILLHAVEN'S BOARD WAS FILLED BY MARIS ANDERSONS 55 EXECUTIVE VICE PRESIDENT AND TREASURER OF NATIONAL MEDICAL ENTERPRISES INC HILLHAVEN'S FORMER CORPORATE PARENT MR EAMER'S RESIGNATION FROM HILLHAVEN CAME AFTER FEDERAL AUTHORITIES BEGAN A CRIMINAL INVESTIGATION LAST MONTH INTO ALLEGATIONS OF IMPROPER AND ABUSIVE PRACTICES AT NATIONAL MEDICAL WHICH OPERATES A NATIONWIDE CHAIN OF HOSPITALS AND PSYCHIATRIC CENTERS SEVERAL OF THE NATION'S LARGEST INSURERS ARE ALSO PRESSING CIVIL FRAUD CLAIMS AGAINST THE COMPANY ALTHOUGH NATIONAL MEDICAL YESTERDAY ANNOUNCED A SETTLEMENT AGREEMENT THAT WOULD RESOLVE MANY OF THE CLAIMS MR EAMER WAS A COFOUNDER OF NATIONAL MEDICAL BASED IN SANTA MONICA CALIF AND WAS ITS CHIEF EXECUTIVE UNTIL HE STEPPED DOWN IN APRIL UNDER PRESSURE FROM THE BOARD A HILLHAVEN SPOKESMAN DECLINED TO LINK MR EAMER'S DEPARTURE FROM HILLHAVEN WITH THE PROBLEMS AT NATIONAL MEDICAL HILLHAVEN RECENTLY COMPLETED A DEBT RESTRUCTURING SEVERING ITS CORPORATE TIES WITH NATIONAL MEDICAL THERE HAVE NEVER BEEN ANY ISSUES OF IMPROPRIETY IN MR EAMER'S ROLE AT HILLHAVEN THE SPOKESMAN SAID MR EAMER'S RESIGNATION FROM THE COMPANY AND ITS BOARD WAS EXPECTED AND A NATURAL PROGRESSION SINCE WE GAINED OUR FINANCIAL INDEPENDENCE FROM NATIONAL MEDICAL ENTERPRISES HE SAID SEPARATELY HILLHAVEN'S BOARD APPROVED A 1FOR5 REVERSE SPLIT OF THE COMPANY'S 1048 MILLION SHARES OUTSTANDING THE COMPANY SAID THE SPLIT WOULD BE EFFECTIVE IN EARLY NOVEMBER BUT NO PAY OR RECORD DATE HAS BEEN SET IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE HILLHAVEN SHARES CLOSED AT 3375 UP 125 CENTS 9309300072 930930 MARKETING & MEDIA FLORIDA CABLETV GROUP IS INVESTIGATED FOR EFFORTS TO MONITOR STATE REGULATORS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL A CABLETELEVISION TRADE GROUP IN FLORIDA HAS FOUND ITSELF THE TARGET OF A STATE CRIMINAL INQUIRY OVER EFFORTS TO MONITOR THE ACTIVITIES OF STATE REGULATORS THE FLORIDA DEPARTMENT OF LAW ENFORCEMENT SAID IT HAS OPENED AN INVESTIGATION OF THE FLORIDA CABLE TELEVISION ASSOCIATION A TALLAHASSEEBASED GROUP OF 165 CABLESYSTEM OPERATORS THE PROBE ACCORDING TO THOSE CLOSE TO THE INQUIRY CENTERS ON THE CABLE GROUP'S SURVEILLANCE OF MEMBERS OF THE STATE PUBLIC SERVICE COMMISSION WHICH REGULATES THE LOCAL TELEPHONE INDUSTRY AND WHETHER ANY INFORMATION WAS GATHERED ILLEGALLY THE FLORIDA CABLE GROUP STARTED ITS EFFORT FOUR YEARS AGO BECAUSE OF CONCERN THAT THE TELEPHONE COMPANIES HAD IMPROPER INFLUENCES ON REGULATORS SAID STEVE WILKERSON PRESIDENT OF THE GROUP ALTHOUGH SOME CABLE OPERATORS AND PHONE COMPANIES HAVE FORMED ALLIANCES RECENTLY TO OFFER INFORMATION SURVICES BOTH INDUSTRIES REMAIN FIERCELY COMPETITIVE THE SURVEILLANCE ACCORDING TO THOSE CLOSE TO THE INQUIRY INCLUDED PHONE RECORDS OF COMMISSION MEMBERS FROM BOTH THEIR OFFICES AND HOMES AS WELL AS MONITORING OF THEIR HOUSES AND ACTIVITIES IN PARKING LOTS MR WILKERSON SAID THE INFORMATION GATHERED BY A PRIVATE INVESTIGATOR HIRED BY THE TRADE ASSOCIATION WAS PLACED ON A COMPUTER DISC AND WAS FORWARDED BY THE GROUP TO STATE LAWENFORCEMENT AUTHORITIES LAST SPRING IT WAS THIS ACTION THAT PROMPTED THE STATE INVESTIGATION OF THE CABLE GROUP MR WILKERSON SAID THE GROUP NEVER TOLD THE INVESTIGATOR WHO WAS PAID BETWEEN 20000 AND 25000 TO OBTAIN ANY INFORMATION ILLEGALLY THE CABLE GROUP DECLINED TO IDENTIFY THE INVESTIGATOR THE TRADE GROUP INCLUDES THE THREE LARGEST PLAYERS IN THE FLORIDA MARKET TIME WARNER INC TELECOMMUNICATIONS INC AND CONTINENTAL CABLEVISION INC REPRESENTATIVES AT TIME WARNER AND CONTINENTAL SAID THEY WEREN'T PERSONALLY AWARE OF THE GROUP'S ACTIONS AND DECLINED FURTHER COMMENT BUT MR WILKERSON SAID THE THREE COMPANIES ALONG WITH OTHER IMPORTANT PLAYERS IN THE TRADE GROUP WERE AWARE OF FLORIDA CABLE'S EFFORTS BUT LEFT THE DETAILS TO HIM TELECOMMUNICATIONS' MANAGER IN FLORIDA SCOTT NORWOOD SAID HE AGREED WITH THAT DESCRIPTION A SPOKESWOMAN FOR SOUTHERN BELL A UNIT OF BELLSOUTH CORP SAID THERE IS NO LEGAL WAY TO OBTAIN PRIVATE TELEPHONE RECORDS EXCEPT BY SUBPOENA RECORDS OF TELEPHONE CALLS MADE BY STATE OFFICIALS FROM THEIR OFFICES ARE PUBLICLY AVAILABLE 9309300071 930930 IRS HEMET CALIF CONCLUDE SETTLEMENT ON MUNICIPAL BONDS WASHINGTON THE INTERNAL REVENUE SERVICE AND THE HOUSING AUTHORITY OF HEMET CALIF CONCLUDED A SETTLEMENT PRESERVING THE TAXEXEMPT STATUS OF 238 MILLION OF MUNICIPAL BONDS SOLD BY THE AUTHORITY IN 1986 MORE SUCH ACCORDS ARE EXPECTED BEFORE LONG THE IRS IS ENGAGED IN SETTLEMENT TALKS ELSEWHERE INVOLVING HUNDREDS OF MILLIONS OF DOLLARS OF ALLEGEDLY BAD MUNIS FROM THE 1980S ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE IRS THINKS THAT THE HEMET BONDS DIDN'T COMPLY WITH THE LEGAL REQUIREMENTS FOR TAXEXEMPT STATUS THE HEMET SETTLEMENT IS UNUSUAL IN THAT IT EXPLICITLY FREES THE IRS TO MAKE PUBLIC DETAILS OF THE PACT CITING CONFIDENTIALITY LAWS THE IRS HAS TREATED SUCH ACCORDS AS PRIVATE TAXPAYER MATTERS BUT THE AGENCY NOW BELIEVES THAT ANNOUNCING THE NAMES OF THE PARTICIPANTS CAN SERVE AS A DETERRENT THIS PRACTICE OF KEEPING THE NAMES CONFIDENTIAL HAS BEEN CRITICIZED BY THE GENERAL ACCOUNTING OFFICE AND OTHERS ON THE GROUND THAT IT KEPT THE MUNI MARKET IN THE DARK ABOUT IRS ENFORCEMENT ACTIONS UNDER THE HEMET PACT THE LEAD UNDERWRITER OF THE BONDS MILLER & SCHROEDER FINANCIAL INC MINNEAPOLIS AND OTHER PRIVATE PARTIES TO THE BOND DEAL AGREED TO PAY 11 MILLION TO THE IRS LAWYERS FOR THE IRS AND HEMET SAID THE HEMET BONDS WERE SOLD TO FINANCE TWO LOWINCOME APARTMENT PROJECTS THAT NEVER WERE BUILT THE BONDS REMAIN OUTSTANDING WITH BOND PROCEEDS INVESTED IN GUARANTEED INVESTMENT CONTRACTS THE IRS NEVER FORMALLY DECLARED THE SECURITIES TAXABLE BUT THE AGENCY MADE IT CLEAR IT WAS PREPARED TO DO SO ON THE GROUND THAT THE BONDS VIOLATED RULES BARRING ARBITRAGE IN THE MUNI MARKET ARBITRAGE IS EARNED IN THE TAXEXEMPT MARKET BY INVESTING BOND PROCEEDS IN HIGHERYIELDING INSTRUMENTS JOHN LARSON AN ATTORNEY FOR HEMET WHO NEGOTIATED THE ACCORD WITH THE IRS SAID PARTIES DETERMINED IT WAS CHEAPER TO WIPE THE SLATE CLEAN WITH THE IRS THAN TO FACE A RASH OF LAWSUITS IF BONDS WERE TAXED THE HEMET AGENCY WASN'T REQUIRED TO CONTRIBUTE TO THE SETTLEMENT HE SAID IT INSISTED IT DIDN'T CAUSE THE TAX PROBLEMS THAT THREATENED THE TAX EXEMPTION OF THE SECURITIES MR LARSON SAID OTHERS CONTRIBUTING TO THE HEMET SETTLEMENT INCLUDE ANOTHER UNDERWRITER FIRST NATIONAL BANK OF ST PAUL WHICH HAS MERGED INTO FIRST BANK SYSTEM INC'S FIRST BANK NATIONAL ASSOCIATION AND THE BOND COUNSEL UNDERWRITER'S COUNSEL AND DEVELOPER INVOLVED IN THE TRANSACTION 9309300070 930930 IN VENICE A DEATH BREATHES NEW LIFE INTO ANCIENT CURSE PALACE ON GRAND CANAL BUILT BY OBESE ENVOY HAUNTS FAT CATS GRANDES DAMES BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL VENICE WITH ITS BRIGHT MARBLE FACADE AND GAUDY MIX OF ARCHITECTURAL STYLES THE CA' DARIO PALACE HAS OFTEN ATTRACTED SPECIAL ATTENTION NOT ALL OF IT FLATTERING AN ITALIAN POET ONCE LIKENED THE SUMPTUOUS STRUCTURE TO A DECREPIT COURTESAN BOWED BENEATH THE WEIGHT OF HER BAUBLES THESE DAYS THE 15THCENTURY EDIFICE ON VENICE'S GRAND CANAL IS ONCE AGAIN CAUSING CONTROVERSY BUT NOT BECAUSE OF ITS ARCHITECTURE WHEN THE ITALIAN BUSINESS TYCOON RAUL GARDINI SHOT AND KILLED HIMSELF IN LATE JULY HE WAS JUST THE LATEST IN A LONG LINE OF PALACE OWNERS TO MEET WITH GRAVE MISFORTUNE OTHER RECENT INHABITANTS INCLUDE AN ITALIAN COUNT WHO WAS BLUDGEONED TO DEATH BY HIS LOVER AND A MAN WHO WAS HOUNDED OUT OF VENICE ALLEGEDLY FOR HOLDING ORGIES THAT IS JUST THE PAST FEW DECADES THE FARTHER BACK YOU GO THE MORE BODIES AND SCANDALS YOU STUMBLE OVER IT'S ENOUGH TO MAKE EVEN HARDHEADED VENETIANS WONDER WHETHER THERE IS ANYTHING TO THE OLD RUMOR ABOUT THE ILLFATED PALAZZO AH YES THE CURSE NODS VANDA MENEGHINI A TINY WOMAN WITH A SWEEP OF WHITE HAIR WHO RUNS A HABERDASHERY BEHIND THE PALACE IT'S NOT POSSIBLE THAT A MAN LIKE GARDINI WOULD HAVE KILLED HIMSELF HE WAS RICH KNOWN ALL OVER THE WORLD LEANING OVER A GLASSTOPPED COUNTER MRS MENEGHINI DROPS HER VOICE TO A WHISPER PERHAPS SHE CONFIDES HE WAS MURDERED OFFICIALLY THERE IS NOT A SHRED OF EVIDENCE TO SUGGEST THAT MR GARDINI'S DEATH WAS CONNECTED TO THE PALACE NOR THAT HE DIED BY ANYTHING OTHER THAN HIS OWN HAND IN FACT HE SHOT HIMSELF IN MILAN NOT VENICE AND WHILE NOBODY CAN KNOW HIS MOTIVATION ONE LIKELY CANDIDATE HAS EMERGED AT THE TIME OF MR GARDINI'S DEATH MAGISTRATES WERE CHASING A TRAIL OF EVIDENCE THAT ALLEGEDLY LINKED HIM TO A 100 MILLION PAYOFF TO TOP POLITICIANS THE MOST SENSATIONAL ASPECT OF ITALY'S HUGE NATIONAL CORRUPTION SCANDAL MR GARDINI THE FORMER CHAIRMAN OF THE FERRUZZI FAMILY'S BUSINESS EMPIRE AND AN AVID YACHTSMAN WHO MOUNTED A CHALLENGE FOR THE AMERICA'S CUP KNEW HE COULD SOON BE ARRESTED BUT TRY TELLING THAT TO THE VENETIANS THE DAY AFTER MR GARDINI'S DEATH WHILE ITALIAN MEDIA FOCUSED ON HIS LIFE AND THE CORRUPTION ALLEGATIONS VENICE CORRESPONDENTS FILED STORIES DETAILING FIVE CENTURIES OF GORE AT THE PALACE AND LAMENTING THAT ILLFATED DAY WHEN RAUL BOUGHT CA' DARIO AS ONE HEADLINE PUT IT NOR ARE FOREIGNERS IMMUNE TO THE RUMOR VIRUS JOHN HOHNSBEEN A LONGTIME AMERICAN RESIDENT WHO ONCE LIVED IN A VILLA TWO DOORS FROM THE PALACE VIVIDLY RECALLS THE LURID DEATHS OF ALL ITS RECENT RESIDENTS FOUR IN THIRTY YEARS HE SAYS IT SEEMS A BIT MUCH DOESN'T IT SCANDAL CERTAINLY WASN'T WHAT GIOVANNI DARIO SOUGHT WHEN HE BUILT THE PALACE A VENETIAN DIPLOMAT WHO NEGOTIATED PEACE WITH THE TURKS IN 1479 HE WANTED SIMPLY TO RETIRE THERE BUT DIDN'T SPEND MUCH TIME AT THE PALACE BECAUSE HE KEPT BEING DISPATCHED ABROAD I HAVE ENTERED MY EIGHTH DECADE AND I AM GROWN SO FAT AND AM SO AFFLICTED WITH ILLNESS THAT MY LAST DAYS ARE NIGH AND I WOULD LIKE TO SPEND THEM AT HOME THE ENVOY WROTE IN DESPERATION TO THE DOGE OF VENICE WHO HAD JUST ORDERED HIM TO GO FROM ISTANBUL TO PERSIA FRANZ BABINGER THE GERMAN AUTHOR OF A SCHOLARLY BIOGRAPHY OF DARIO TRACES THE FIRST SERIOUS MISFORTUNE AT THE PALAZZO TO THE NOBLEMAN'S SONINLAW VINCENZO BARBARO HE INSULTED A CITY OFFICIAL AND WAS PUBLICLY DISGRACED AND STRIPPED OF HIS OFFICE HE WAS LATER MURDERED HIS WIFE DARIO'S DAUGHTER DIED OF SHAME HER TOMB AND THAT OF HER FATHER ON A NEARBY ISLAND WERE LATER USED TO STORE GUNPOWDER AND WERE BLOWN UP DURING AN AUSTRIAN SIEGE IN 1849 DETAILS OF SUBSEQUENT OWNERS ARE MURKY AND MADE MORE SO BY THE RUMORS SWIRLING AROUND THE PALACE AMONG THE CURSED AN ARMENIAN DIAMOND MERCHANT WHO IS SAID TO HAVE GONE SPECTACULARLY BANKRUPT AN ENGLISH HISTORIAN NAMED RAWDON LUBBOCK BROWN WHO MAY OR MAY NOT HAVE COMMITTED SUICIDE AND A SUCCESSION OF EUROPEAN NOBILITY INCLUDING A FRENCH ARISTOCRAT COMTESSE DE LA BAUME PLUVINIEL ONE OF WHOSE GUESTS REPUTEDLY DIED SOON AFTER STAYING AT THE PALACE IN FACT THE GUEST LIVED FOR ANOTHER 35 YEARS MORE RECENTLY THERE WAS CHARLES BRIGGS AN AMERICAN ECCENTRIC WHO OWNED THE PALACE FROM THE 1950S AND WHO WAS THROWN OUT OF ITALY BECAUSE HE INVITED TOO MANY ITALIAN SOLDIERS ROUND FOR PARTIES REMEMBERS MR HOHNSBEEN THE AMERICAN IN VENICE THE SOCIAL SCENE AT THE PALACE CALMED DOWN SOMEWHAT WITH THE NEXT OWNER A RECLUSIVE TORINESE COUNT AT LEAST UNTIL THE COUNT WAS BEATEN TO DEATH WITH A CANDELABRA BY HIS HOMOSEXUAL BUTLER/LOVER IN 1970 THE NEXT OWNER KIT LAMBERT MANAGER OF THE ROCK GROUP THE WHO COMPLAINED THAT THE BLOODSTAINS WERE STILL ON THE BEDROOM FLOOR WHEN HE MOVED IN MR LAMBERT IS REMEMBERED FONDLY IN VENICE BECAUSE HE ENTERTAINED LAVISHLY BUT HIS HEALTH WAS WORN AWAY BY DRUGS AND ALCOHOL AND HE DIED AT AGE 45 OF A BRAIN HEMORRHAGE THIS UNLUCKY HISTORY CERTAINLY DIDN'T DETER MR GARDINI THE TYCOON WHO WENT OUT OF HIS WAY TO BUY THE PALACE IN THE 1980S FROM A GERMAN INSURANCE COMPANY TO PURCHASE THE PROPERTY MR GARDINI BOUGHT THE COMPANY AND SOLD IT MINUS THE PALACE TO AN INSURER OWNED BY THE FERRUZZIS THEN HE TRANSFERRED CA' DARIO PURPORTED CURSE INCLUDED TO HIS OWN FAMILY'S ASSETS IT WAS IN THE SPIRIT OF GARDINI TO CHALLENGE THE PALACE'S UNHEALTHY REPUTATION HE DIDN'T CARE AT ALL SAYS AN AIDE STEFAN ROBERTI MR GARDINI'S DAUGHTER STILL LIVES THERE ALTHOUGH SHE MAY SOON MOVE OUT AND SO FAR MR ROBERTI SAYS THE FAMILY HAS NO PLANS TO SELL THEY MIGHT HAVE PROBLEMS IF THEY TRIED ALL THE TALK ABOUT A CURSE HAS HAD THE EFFECT OF DEPRESSING THE MARKET VALUE SAYS PHILIP RYLANDS DEPUTY DIRECTOR OF THE PEGGY GUGGENHEIM COLLECTION NEAR THE PALACE THE CA' DARIO LEGEND IS SPECIAL HE ADDS BECAUSE THERE AREN'T A LOT OF GHOSTS IN VENICE IT ISN'T LIKE SCOTLAND THE SCARCITY OF SUPERNATURAL BELIEFS IN VENICE MAY EXPLAIN WHY THE CA' DARIO CURSE SEEMS TO COMMAND SO MUCH RESPECT HERE OPPOSITE THE PALACE GONDOLIERS SHUFFLE UNEASILY WHEN ASKED ABOUT THE HEX I'LL GIVE YOU THE WHOLE HISTORY OF VENICE CURSE AND ALL WITH DATES FOR 500000 LIRE 300 ONE VETERAN BOATMAN FINALLY SAYS HE SEEMS RELIEVED HOWEVER WHEN THE OFFER IS DECLINED THE TOURIST OFFICE ALSO ISN'T FORTHCOMING PEOPLE MAY HAVE DIED THERE EVEN IN STRANGE CIRCUMSTANCES SAYS AN EMBARRASSED OFFICIAL BUT EVERYBODY HAS TO DIE SOMEWHERE AS FOR MRS MENEGHINI WHO RUNS THE HABERDASHERY BY THE PALACE SHE REMEMBERS HER FORMER NEIGHBOR WELL DURING MR GARDINI'S CHALLENGE FOR THE AMERICA'S CUP SHE SAYS LOCALS CROWDED INTO A NEIGHBORHOOD BAR TO WATCH ON TV AND CHEER HIM ON SHE ALSO RECALLS HOW MR GARDINI'S GRANDCHILD ONCE SPAT AT HER CAT SO ISN'T SHE A LITTLE NERVOUS TO LIVE AND WORK SO CLOSE TO THE PALAZZO OH NO MRS MENEGHINI REPLIES STOICALLY OF COURSE I DON'T BELIEVE IN THIS SUPERSTITION MYSELF 9309300069 930930 DESIGNCRAFT NAME CHANGE NEW YORK DESIGNCRAFT INDUSTRIES INC SAID THE COMPANY CHANGED ITS NAME TO SLOAN'S SUPERMARKETS INC THE COMPANY SAID THE CHANGE REFLECTS ITS RECENT ACQUISITION OF 11 SLOAN'S SUPERMARKETS IN THE NEW YORK AREA THE COMPANY'S SHARES WILL TRADE UNDER THE SYMBOL SLO ON THE AMERICAN STOCK EXCHANGE BEGINNING OCT 1 9309300068 930930 CLINTON IS LIKELY TO GET RUSSIA AID BILL RANCHERS LOSE BID TO BLOCK HIGHER FEES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS IS POISED TO SEND PRESIDENT CLINTON A LANDMARK 25 BILLION PACKAGE OF ECONOMIC ASSISTANCE TO RUSSIA AND THE INDEPENDENT STATES OF THE FORMER SOVIET UNION INCLUDING UKRAINE BY A 321108 MARGIN THE HOUSE APPROVED THE MEASURE AND THE SENATE PASSAGE WILL FOLLOW THIS MORNING AS PART OF A LARGER 146 BILLION FOREIGNAID BUDGET EXTENDING THROUGH THE NEW FISCAL YEAR THAT STARTS TOMORROW THE ACTION CAME AS POWERFUL RANCHING INTERESTS IN THE WESTERN STATES SUSTAINED A SERIES OF SETBACKS THAT PROBABLY MEAN A LARGE INCREASE IN FEDERAL GRAZING FEES AND AN END TO WOOL SUBSIDIES VALUED AT TENS OF MILLIONS OF DOLLARS TO SHEEP HERDERS ON A 314109 ROLL CALL THE HOUSE SOUNDLY REJECTED A SENATEBACKED MORATORIUM THAT WOULD HAVE BLOCKED THE CLINTON ADMINISTRATION FROM MORE THAN DOUBLING THE GRAZING FEES CHARGED FOR CATTLE AND SHEEP ON FEDERAL LANDS THE LOPSIDED VOTE STRENGTHENS THE HAND OF INTERIOR SECRETARY BRUCE BABBITT WHO MET YESTERDAY WITH SENATORS FROM WESTERN STATES BOTH SIDES LATER INDICATED A WILLINGNESS TO PURSUE A LEGISLATIVE COMPROMISE TO END THE IMPASSE THESE NEGOTIATIONS COULD DOVETAIL WITH A HOUSESENATE CONFERENCE ON THE PENDING NATURAL RESOURCES BUDGET FOR THE COMING YEAR WESTERN SENATORS GIVEN THEIR INFLUENCE IN THE APPROPRIATIONS COMMITTEE SEE THIS AS THEIR BEST OPPORTUNITY TO PROTECT THEIR REGION'S INTERESTS BY THE SAME TOKEN ADMINISTRATION OFFICIALS CLEARLY WERE PLEASED WITH YESTERDAY'S OUTCOME WHILE OPEN TO TALKS BOB ARMSTRONG THE INTERIOR DEPARTMENT'S ASSISTANT SECRETARY FOR LAND AND MINERALS MANAGEMENT SAID ANY COMPROMISE MUST INCLUDE MANAGEMENT REFORMS AS WELL AS FEE INCREASES DEMANDS FOR REFORM IN THE GRAZING RULES HAVE BEEN BUILDING FOR THE PAST DECADE BUT THE MOVEMENT HAS GAINED MOMENTUM THIS YEAR WITH THE NEW LIBERAL CHIC THAT HAS LAWMAKERS COMPETING WITH TRADITIONAL FISCAL CONSERVATIVES TO PROVE THEIR BUDGET CREDENTIALS SIMILARLY WOOL AND MOHAIR SUBSIDIES FINANCED FROM TARIFFS ON IMPORTS ARE SUDDENLY VULNERABLE CONGRESS APPEARS CERTAIN THIS WEEK TO APPROVE AN AGRICULTURE BUDGET THAT WOULD CUT OFF THE SUBSIDIES AFTER THE CURRENT MARKET YEAR ENDING THIS WINTER WITH THE NEW FISCAL YEAR BEGINNING MOST OF THE MAJOR APPROPRIATIONS BILLS FUNDING THE GOVERNMENT STILL ARE AWAITING FINAL ACTION AND A STOPGAP FUNDING RESOLUTION WAS APPROVED LAST NIGHT AND SENT TO THE WHITE HOUSE TO MAINTAIN OPERATIONS FOR AT LEAST THE NEXT TWO WEEKS THE FISCAL CALENDAR IS ALSO A DRIVING FORCE BEHIND THE RUSSIANAID MEASURE TODAY FAILURE TO ACT MEANS RISKING 16 BILLION IN FISCAL 1993 FUNDS THAT WOULD OTHERWISE BE LOST WITH THE END OF THE YEAR THOUGH RUSSIA STANDS TO BENEFIT MOST FROM THE 25 BILLION AT LEAST 300 MILLION IS SET ASIDE FOR UKRAINE WHILE AN EQUAL SUM IS SET ASIDE FOR EXPORTIMPORT BANK SUBSIDIES TO ENCOURAGE TRADE BY THE FORMER SOVIET STATES WITH AMERICAN BUSINESSES THE ADDED FUNDS BRING TOTAL EXIM BANK APPROPRIATIONS TO 1 BILLION IN FISCAL 1994 AN ALMOST ONETHIRD INCREASE FROM THE CURRENT YEAR SEPARATELY LAWMAKERS DESIGNATED 35 MILLION FROM THE AID PACKAGE FOR COOPERATIVE SCIENTIFIC ENDEAVORS WITH US RESEARCHERS INCLUDING THE NATIONAL LABORATORIES CHAMPIONED BY NEW MEXICO SEN PETE DOMENICI A SENIOR REPUBLICAN ON THE SENATE APPROPRIATIONS PANEL 9309300067 930930 MUTUAL FUNDS FUND INFLOWS IN AUGUST SOARED TO 121 BILLION BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS POURED A RECORD 121 BILLION INTO STOCK MUTUAL FUNDS IN AUGUST WITH ALMOST HALF THE MONEY GOING INTO FUNDS THAT INVEST ABROAD THIS MONTH STOCKFUND INFLOWS APPEAR TO BE SLOWING A BIT BUT THE MOVE TO INTERNATIONAL FUNDS IS ACCELERATING AS SMALL INVESTORS BET THAT HOT OVERSEAS MARKETS WILL CONTINUE TO OUTPACE THE US AUGUST INFLOWS SOARED 24 FROM THE 97 BILLION ATTRACTED BY STOCK FUNDS IN JULY A MUTUALFUND TRADE GROUP REPORTED THE AUGUST STOCKFUND INFLOW BEAT THE MONTHLY RECORD OF 118 BILLION SET IN MARCH FOR THE FIRST EIGHT MONTHS OF THIS YEAR INVESTORS HAVE DELUGED STOCK FUNDS WITH A RECORD 82 BILLION OF NEW MONEY SURPASSING THE FULLYEAR RECORD OF 78 BILLION ESTABLISHED LAST YEAR MUTUALFUND INFLOWS HAVE HELPED BUOY THE US STOCK MARKET FOR MONTHS AND ARE WIDELY WATCHED AS A YARDSTICK OF SMALLINVESTOR SENTIMENT TOTAL ASSETS HELD BY MUTUAL FUNDS INCLUDING MONEY MARKET FUNDS WERE 19 TRILLION AT THE END OF AUGUST THROW IN PUBLICLY TRADED OR CLOSED END FUND ASSETS AND THE FUND INDUSTRY'S ASSETS HAVE PROBABLY PASSED THE 2 TRILLION MARK FUNDS INVESTING OVERSEAS TOOK IN 45 OF STOCK FUND CASH FLOWS IN AUGUST PEOPLE SEE THAT OUR DOMESTIC MARKETS AREN'T CHEAP AND THEY'RE NERVOUS ABOUT PUTTING MONEY STRICTLY INTO US MARKETS SAYS ROBERT LEO DIRECTOR OF MUTUAL FUND MARKETING AT SMITH BARNEY SHEARSON A SUBSIDIARY OF PRIMERICA CORP THEY BUY THE STORY OF DIVERSIFICATION OVERSEAS BUT FUND SHAREHOLDERS REMAIN QUICK TO PULL THE TRIGGER ON POORLY PERFORMING MARKETS FUND EXECUTIVES SAY THAT INVESTORS ARE FLEEING JUNK BOND FUNDS IN SEPTEMBER FOLLOWING SEVERAL WEEKS OF DECLINING PRICES FOR JUNKFUND SHARES IN AUGUST BOND FUNDS DREW 127 BILLION IN CASH DOWN SLIGHTLY FROM 131 BILLION IN JULY BUT HIGHER THAN THE 93 BILLION IN CASH THEY RECEIVED IN AUGUST 1992 CASH FLOW DATA FROM THE INVESTMENT COMPANY INSTITUTE COUNT NEW SALES OF FUNDS MINUS REDEMPTIONS AND INCLUDE THE NET EFFECT OF EXCHANGES BETWEEN FUNDS REINVESTED DIVIDENDS AREN'T INCLUDED FUNDS INVESTING OVERSEAS TOOK IN A RECORD 54 BILLION IN AUGUST THAT COMPARES WITH 16 BILLION A MONTH ON AVERAGE FOR THE FIRST SIX MONTHS OF THIS YEAR OR 15 OF STOCKFUND CASH FLOWS ACCORDING TO STRATEGIC INSIGHT A CONSULTING FIRM IN NEW YORK MUCH OF THE MONEY GOING TO FOREIGN STOCK FUNDS IS BEING TRANSFERRED FROM DOMESTIC STOCK FUNDS SAYS AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT IF ANYTHING THE PROPORTION OF STOCK FUND MONEY GOING OVERSEAS GREW IN SEPTEMBER SAY FUND EXECUTIVES THE STORY AGAIN MORE THAN ANY OTHER MONTH THIS YEAR IS INTERNATIONAL SAYS GAVIN QUILL A MARKETING RESEARCH ANALYST AT SCUDDER STEVENS & CLARK INC DATA FROM AMG DATA SERVICES A FUND CASHFLOW TRACKINN ARCATA CALIF SUGGEST 60 TO 70 OF STOCK FUND CASH FLOW WENT TO FUNDS INVESTING OVERSEAS IN SEPTEMBER'S FIRST THREE WEEKS SCUDDER AND T ROWE PRICE ASSOCIATES INC SAY 90 OF THE CASH FLOW INTO THEIR STOCK AND BOND FUNDS IN SEPTEMBER HAS BEEN INTO INTERNATIONAL FUNDS SMITH BARNEY SHEARSON PRUDENTIAL INSURANCE CO SUBSIDIARY PRUDENTIAL MUTUAL FUNDS FRANKLIN RESOURCES INC SUBSIDIARY TEMPLETON FUNDS AND MANY OTHER GROUPS SAY THEY HAD HIGHER FLOWS INTO FUNDS INVESTING OVERSEAS MOREOVER MANY MANAGERS OF FUNDS INVESTING IN US STOCKS HAVE BOUGHT FOREIGN STOCKS THIS RAISES THE CONCERN AMONG SOME PEOPLE THAT THE FLOOD OF MONEY INTO MUTUAL FUNDS AFTER HELPING TO DRIVE THE US STOCK MARKET MAY START LOSING SOME OF ITS US MARKETBOOSTING MUSCLE AS FUND INFLOWS INCREASINGLY GO ABROAD STILL LASZLO BIRINYI OF BIRINYI ASSOCIATES SAYS THE MONEY FLOWING INTO FOREIGN FUNDS IS A BIT OF A POSITIVE FOR THE US MARKET BECAUSE IT SHOWS THAT THE SENTIMENT TOWARD US STOCKS IS NOT OVERWHELMINGLY POSITIVE AT MARKET TOPS EVERYONE IS POSITIVE FUND MANAGERS SEEM TO BE FINDING STOCKS THEY LIKE CASH LEVELS AT STOCK FUNDS FELL TO 88 AT THE END OF AUGUST FROM 93 IN JULY SOME MARKET WATCHERS WORRY WHEN CASH LEVELS AT FUNDS DROP BECAUSE CASH REPRESENTS UNTAPPED BUYING POWER TO PUSH STOCK HIGHER AT THE BOSTON MUTUALFUND GIANT FIDELITY INVESTMENTS THIS MONTH HAS BROUGHT A HIGHERTHANUSUAL LEVEL OF REDEMPTIONS FOR TAX PAYMENTS AND TUITION PAYMENTS SAYS FIDELITY'S EXECUTIVE VICE PRESIDENT NEAL LITVACK FUND GROUPS WITH LOWER SALES IN SEPTEMBER INCLUDING JANUS FUNDS AND INVESCO FUNDS GROUP CITED INVESTOR NERVOUSNESS ABOUT OCTOBER THE MONTH THAT HOSTED THE GREAT CRASHES OF 1929 AND 1987 THE MONEY THAT DOES GO INTO STOCK FUNDS INVESTING IN THE US IS STILL HEADING INTO THE MORE CONSERVATIVE TYPES OF FUNDS DESPITE A STRONG SHOWING THIS MONTH BY THE MORE AGGRESSIVE SMALLSTOCK FUNDS FUNDS INVESTING IN BOTH STOCKS AND BONDS WHICH HISTORICALLY HAVE DROPPED LESS IN BEAR MARKETS WERE THE BIGGESTSELLING FUNDS AT BOTH FIDELITY AND VANGUARD GROUP THE SECOND LARGEST MUTUAL FUND COMPANY IN THE US THE ICI COUNTS CASH FLOW INTO STOCKANDBOND FUNDS AS GOING INTO BOND FUNDS ALTHOUGH SUCH FUNDS OFTEN PUT AS MUCH AS 60 OF THEIR MONEY INTO STOCKS ACCORDING TO AMG CASH ACTUALLY FLOWED OUT OF GROWTH FUNDS DURING THE SECOND AND THIRD WEEKS OF SEPTEMBER GROWTH FUNDS ARE OFTEN MORE DARING THAN OTHER TYPES OF STOCK FUNDS AND INVESTORS MAY HAVE BEEN REACTING TO SOME DIFFICULT WEEKS IN THE STOCK MARKET MONEY ALSO CONTINUES TO COME OUT OF HEALTH CARE FUNDS AND ENERGY FUNDS ACCORDING TO AMG EVEN MORE SKITTISH HAVE BEEN INVESTORS IN JUNK BOND FUNDS WHICH INVEST IN THE SPECULATIVE HIGHYIELD BONDS ISSUED BY COMPANIES WITH LOW CREDIT RATINGS OR NONE AT ALL AMG SAYS INVESTORS TOOK MORE THAN 725 MILLION OUT OF JUNK BOND FUNDS DURING THE FIRST THREE WEEKS OF SEPTEMBER IN RESPONSE TO SEVERAL WEEKS OF DECLINING SHARE PRICES FOR THE JUNK FUNDS THE REDEMPTIONS AND TRANSFERS OUT OF JUNK BOND FUNDS RECALL A SIMILAR WAVE IN OCTOBER OF LAST YEAR SOME MUTUAL FUNDS INSTITUTED REDEMPTION FEES TO DISCOURAGE SHORTTERM TRADING IN JUNK BOND FUNDS BUT T ROWE PRICE ASSOCIATES SAYS IT HAD BIG OUTFLOWS FROM ITS JUNK BOND FUND DESPITE A 1 REDEMPTION FEE MAYBE WE SHOULD HAVE MADE IT 2 SAYS A SPOKESMAN FOR T ROWE PRICE FRANKLIN INVESCO KEMPER CORP'S KEMPER FINANCIAL SERVICES AND VANGUARD ALSO REPORTED OUTFLOWS OF VARIOUS SIZES FROM THEIR JUNKBOND FUNDS TO A LESSER EXTENT SOME FUND GROUPS REPORTED OUTFLOWS FROM US TREASURY BOND AND GOVERNMENTSECURITIES FUNDS OPPENHEIMER MANAGEMENT CORP PRUDENTIAL SECURITIES PUTNAM COS AND SMITH BARNEY SHEARSON ALL OF WHICH SELL FUNDS THROUGH BROKERS REPORTED HIGHER SALES OF MUNICIPAL BOND FUNDS IN SEPTEMBER FIDELITY AND VANGUARD WHICH SELL TO INVESTORS DIRECTLY HAD LOWER SALES IN THE CATEGORY I CONTINUE TO BE BEFUDDLED BY THE LACK OF INTEREST IN MUNICIPAL BOND FUNDS SAYS FIDELITY'S MR LITVACK A SURVEY OF INVESTOR SENTIMENT BY THE UNIVERSITY OF MICHIGAN DONE ON BEHALF OF FIDELITY FOUND THAT INVESTORS HAVE LOWERED THEIR PLANS TO BUY STOCK FUNDS IN THE NEXT FEW MONTHS 9309300066 930930 INTERNATIONAL PECHINEY TRADING CASE IS LAID TO REST SCANDAL MASKS A TAKEOVER SUCCESS STORY BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL THE ACQUITTAL OF A FORMER SENIOR FRENCH BUREAUCRAT ON INSIDERTRADING CHARGES LAYS TO REST ONE OF THAT COUNTRY'S BIGGEST FINANCIAL SCANDALS OF THE 1980S BUT IT TELLS ONLY PART OF THE STORY A PARIS COURT FOUND FORMER FINANCE MINISTRY CHIEF OF STAFF ALAIN BOUBLIL INNOCENT OF CHARGES HE GAVE BUSINESS FRIENDS ADVANCE WORD OF THE 1988 ACQUISITION OF AMERICAN NATIONAL CAN CO BY STATEOWNED ALUMINUM GIANT PECHINEY SA BUT SEVEN OF THE EIGHT BUSINESSMEN AND STOCK TRADERS CHARGED ALONGSIDE MR BOUBLIL RECEIVED SUSPENDED SENTENCES OF AS MUCH AS TWO YEARS THEY WERE ALSO FINED IN ONE CASE AS MUCH AS 25 MILLION FRANCS 44 MILLION STILL AS INTERNATIONAL ATTENTION HAS FOCUSED ON THE INSIDERTRADING ALLEGATIONS THE COMPANY WHOSE TAKEOVER SPARKED THE CONTROVERSY AMERICAN NATIONAL CAN HAS BEEN QUIETLY PROSPERING PECHINEY THE ACQUIRING COMPANY WAS CLEARED YEARS AGO BY INVESTIGATORS OF INVOLVEMENT IN ILLEGAL TRADING BUT THE LONGRUNNING INVESTIGATION HELPED DRAW ATTENTION AWAY FROM THE ACQUISITION WHICH SOME ANALYSTS SAY IS AN ALLTOORARE EXAMPLE OF A TRANSATLANTIC TAKEOVER SUCCESS THE FRENCH HAVEN'T RIPPED THE COMPANY UP SAYS TIMOTHY BURNS A PACKAGING INDUSTRY ANALYST AT CS FIRST BOSTON'S OFFICE IN CHICAGO WHERE ANC STILL IS BASED THEY HAVE MADE RELATIVELY FEW CHANGES BUT THE SALES AND PROFIT GROWTH HAVE BEEN AT THE HIGH END OF THE INDUSTRY ADDS A COMPETITOR WHO REGULARLY GOES HEADTOHEAD WITH ANC I THINK THEY OVERPAID ASTRONOMICALLY WHEN THEY ACQUIRED IT BUT YOU HAVE TO ADMIT THAT THEY'VE GOT THEMSELVES A GREAT BUSINESS THEY HAVE SOME OF THE INDUSTRY'S MOST EFFICIENT PLANTS NONE OF THIS IS MUCH CONSOLATION TO THE FRENCH POLITICIANS AND BUREAUCRATS WHOSE NAMES WERE SULLIED EARLY REPORTS THAT MR BOUBLIL WOULD BE CHARGED HELPED CREATE A NATIONAL OUTCRY THE AFFAIR WAS ONE OF SEVERAL FINANCIAL SCANDALS THAT HELPED THE SOCIALISTS LOSE CONTROL OF THE GOVERNMENT THIS YEAR FORMER PRIME MINISTER PIERRE BEREGOVOY WHO WAS FINANCE MINISTER AT THE TIME OF THE ACQUISITION AND WHO WAS BLAMED BY SOME FOR THE SOCIALISTS' DEFEAT COMMITTED SUICIDE AFTER THE ELECTION BUT WHILE THE POLITICIANS AND BUREAUCRATS HAVE BEEN AGONIZING JEANPIERRE ERGAS A HARVARD BUSINESS SCHOOLEDUCATED FRENCHMAN SENT IN BY PECHINEY TO HEAD ANC HAS BEEN QUIETLY AT WORK HE HAS BEEN RESTRUCTURING A GROUP THAT WITH THE ACQUISITION BECAME THE WORLD'S LARGEST PACKAGING COMPANY WITH 57 BILLION IN SALES OF CANS AND OTHER KINDS OF PACKAGING WORLDWIDE LAST YEAR I KNEW ABOUT AMERICAN BUSINESS CULTURE AND WAS CAREFUL TO ENSURE THAT WE DEALT THE AMERICAN WAY MR ERGAS SAYS IN A TELEPHONE INTERVIEW FROM CHICAGO MR ERGAS'S STEWARDSHIP HASN'T BEEN TROUBLEFREE HE HAS CLOSED 19 OF THE GROUP'S 120 PLANTS IN THE US AND EUROPE WITH A LOSS OF 2300 JOBS WHILE OPENING JUST SIX NEW PLANTS CRITICS SAY PART OF HIS SUCCESS IS DUE TO THE FACT THAT HIS STATEOWNED PARENT TOOK OVER MUCH OF THE CAN COMPANY'S HOBBLING DEBT MR ERGAS HIMSELF SAYS THAT WITH THE WORLD'S BEVERAGE CAN BUSINESS SUFFERING THIS YEAR WILL BE ONE OF CONSOLIDATION FOR HIS USBASED OPERATIONS WITH LITTLE IF ANY IMPROVEMENT OVER LAST YEAR'S PERFORMANCE BUT MR ERGAS SEEMS TO HAVE AVOIDED MANY OF THE PITFALLS THAT MANAGEMENT CONSULTANTS SAY TYPICALLY BESET CROSSBORDER ACQUISITIONS HE SET CLEAR GOALS SUCH AS PRODUCTIVITY INCREASES WHICH HE SAYS HAVE AVERAGED 6 A YEAR HE AVOIDED USING THE COMPANY AS A SPRINGBOARD FOR EMPIREBUILDING ACQUISITIONS FOCUSING INSTEAD ON THE LESSGLAMOROUS WORK OF STREAMLINING HIS CORE BUSINESS HE ALSO DIDN'T PUT A LOT OF HIS FRIENDS FROM PARIS IN KEY JOBS ONLY ONE OF OUR TOP SEVEN MANAGERS IS FRENCH AND THAT'S ME HE SAYS WE HAVE ONE MORE IN THE TOP 14 AND IN THE NEXT HUNDRED THERE IS NO ONE LAST YEAR HE SAYS PROFIT AT THE AMERICAN NATIONAL CAN PORTION OF THE COMPANY THE HEIR TO THE ACQUIRED COMPANY WHICH INCLUDES ALL US OPERATIONS PLUS BEVERAGE CANS IN EUROPE GREW 124 TO 145 MILLION ANC'S REVENUE ROSE JUST 2 TO 454 BILLION IN A TOUGH MARKET 9309300064 930930 FOREIGN EXCHANGE DOLLAR IS SLUGGISH AGAINST MARK YEN GAINS ON CANADIAN AUSTRALIAN UNITS BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR TRAPPED IN NARROW TRADING RANGES BY A PAUCITY OF MARKETSENSITIVE NEWS HARDLY MOVED AGAINST THE MARK AND THE YEN WEDNESDAY BUT THE US CURRENCY DID GAIN SOME GROUND AGAINST THE CANADIAN AND AUSTRALIAN DOLLARS AS POLITICAL UNCERTAINTY AND POOR ECONOMIC DATA KNOCKED THOSE CURRENCIES LOWER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16136 MARKS UP A BIT FROM 16120 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10505 YEN UP FROM 10490 YEN STERLING WAS TRADING AT 15110 DOWN FROM 15130 EARLY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10498 YEN AND AT 16203 MARKS TRADERS SAID THAT WITH LITTLE FRESH NEWS OUT OF RUSSIA WHERE THE CONFRONTATION DRAGS ON BETWEEN PRESIDENT BORIS YELTSIN AND HIS HARDLINE RIVALS IN PARLIAMENT THE DOLLAR SETTLED BACK TO ITS PRECRISIS LEVELS IT HAD SPENT MUCH OF THE PAST WEEK HIGHER AGAINST THE MARK AS INVESTORS SOUGHT A HAVEN FROM THE POTENTIAL IMPACT OF THE CRISIS ON EUROPE AND PARTICULARLY GERMANY IT WAS MORE OF THE SAME OLD RANGE SAID STEVEN GEOVANIS MANAGING DIRECTOR OF FOREIGNCURRENCY TRADING AT MERRILL LYNCH & CO HE NOTED THAT TRADING WAS RELATIVELY DULL WITH THE DOLLAR RANGING BARELY A FULL PFENNIG AGAINST THE MARK DURING THE DAY MR GEOVANIS ADDED THAT EVEN A RELATIVELY POSITIVE REPORT BY THE COMMERCE DEPARTMENT ON THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US DURING THE SECOND QUARTER FAILED TO SPARK THE MARKET FOR MORE THAN A FEW MINUTES THE AGENCY RAISED ITS ESTIMATE OF SECONDQUARTER GROSS DOMESTIC PRODUCT GROWTH TO 19 FROM 18 GROWTH PREDICTED LAST MONTH MANY ANALYSTS HAD EXPECTED THE FIGURE TO BE LOWERED TRADERS SAID THAT MOST OF THE LONGTERM CURRENCY PLAYERS WHO EXPECT THE DOLLAR TO GAIN GROUND AS THE US ECONOMY RECOVERS HAVE ALREADY BUILT UP SIZABLE HOLDINGS IN THE CURRENCY SO THAT EVEN ROSY REPORTS ARE UNLIKELY TO SPARK FRESH BUYING YOU HAVE TO GET THOSE LONG POSITIONS OUT OF THE MARKET BEFORE YOU CAN HAVE A PURE REACTION TO GOOD NEWS SAID PAUL FARRELL VICE PRESIDENT AT CHASE MANHATTAN BANK IN NEW YORK TRADERS SAID THOUGH THAT WITH THE HEAT OFF IN RUSSIA THE MARKET'S ATTENTION HAS LARGELY REFOCUSED ON HIGH GERMAN INTEREST RATES WHICH ARE DRAWING INVESTMENT IN THE MARK BECAUSE OF THE HIGH YIELDS OFFERED BY GERMAN DEPOSITS GERMANY'S KEY DISCOUNT RATE IS CURRENTLY SET AT 625 COMPARED WITH 3 IN THE US AND 175 IN JAPAN AFTER TRADING SLIGHTLY HIGHER AGAINST THE YEN FOR MOST OF THE DAY AFTER BANK OF JAPAN GOVERNOR YASUSHI MIENO REITERATED THAT G7 NATIONS WOULD INTERVENE IF NECESSARY TO ASSURE CURRENCY STABILITY THE DOLLAR SLIPPED BACK TO END THE NEW YORK DAY LITTLE CHANGED FROM TUESDAY MEANWHILE BOTH THE CANADIAN AND AUSTRALIAN DOLLARS FELL AGAINST THE US CURRENCY TRADERS SAID THAT THE AUSTRALIAN DOLLAR WAS HURT BY A DISAPPOINTING REPORT ON THE COUNTRY'S BALANCE OF PAYMENTS FOR AUGUST AUSTRALIA'S CURRENT ACCOUNT DEFICIT WIDENED IN SEASONALLY ADJUSTED TERMS TO 140 BILLION AUSTRALIAN DOLLARS US906 MILLION IN AUGUST FROM A REVISED 108 BILLION AUSTRALIAN DOLLARS IN JULY THE CANADIAN DOLLAR ALSO WEAKENED IN NEW YORK TRADING WEDNESDAY AS UNCERTAINTY AHEAD OF THE FEDERAL ELECTION ON OCT 25 CONTINUED TO PROMPT NERVOUS INVESTORS TO SELL THE CURRENCY TRADERS SAID THE SALES CAME FROM A VARIETY OF FOREIGN INVESTMENT FUNDS AND BOOSTED THE US DOLLAR THROUGH KEY TECHNICAL LEVELS AROUND 13260 AND 13290 CANADIAN DOLLARS 9309300063 930930 BUSINESS BRIEF MARRIOTT BOARD VOTES TO SPLIT FIRM IN TWO NET ROSE IN 2ND PERIOD WASHINGTON MARRIOTT CORP SAID ITS BOARD VOTED TO PROCEED WITH A PLAN TO SPLIT THE LODGING AND CONTRACTSERVICES COMPANY BY MEANS OF A SPECIAL DIVIDEND PAYABLE OCT 8 TO HOLDERS OF RECORD SEPT 30 THE VOTE FOLLOWED A FAVORABLE RULING BY THE INTERNAL REVENUE SERVICE ON THE TAXFREE STATUS OF THE DIVIDEND SHAREHOLDERS WILL RECEIVE ONE SHARE OF MARRIOTT INTERNATIONAL A LODGING AND SERVICES MANAGEMENT COMPANY FOR EACH SHARE OF MARRIOTT CORP CURRENTLY HELD MARRIOTT CORP WILL BE RENAMED HOST MARRIOTT CORP AND WILL ASSUME MUCH OF THE OLD CONCERN'S REAL ESTATE AND DEBT AS WELL AS ITS AIRPORT AND TOLL ROAD CONCESSIONS MARRIOTT'S STOCK CLOSED AT 3075 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SEPARATELY MARRIOTT REPORTED A SLIGHT RISE IN NET INCOME TO 27 MILLION OR 21 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED SEPT 10 SALES ROSE ABOUT 4 TO 203 BILLION A YEAR EARLIER THE COMPANY HAD NET INCOME OF 26 MILLION OR 21 CENTS A SHARE THE QUARTERLY RESULTS INCLUDED NONCASH INCOME TAX ADJUSTMENTS OF ABOUT FIVE CENTS A SHARE EXCLUDING TAX ADJUSTMENTS AND LODGING DISPOSITIONS IN BOTH YEARS MARRIOTT REPORTED OPERATING PROFIT BEFORE EXPENSES AND INTEREST OF 383 MILLION UP FROM 344 MILLION A YEAR EARLIER FOR THE NINE MONTHS MARRIOTT HAD NET OF 80 MILLION OR 63 CENTS A SHARE UP FROM 66 MILLION OR 51 CENTS A SHARE THE RESULTS REFLECT ACCOUNTING CHANGES FOR INCOME TAXES AND FOR ASSETS PREVIOUSLY HELD FOR SALE SALES ROSE 55 TO 626 BILLION 9309300062 930930 BUILDING AWARDS FELL 1 IN AUGUST DODGE DATA SHOW BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW CONSTRUCTION SLIPPED 1 IN AUGUST BECAUSE OF A FALLOFF IN NONRESIDENTIAL BUILDING AND NONBUILDING CONSTRUCTION ACCORDING TO FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS A BASE YEAR OF 100 FELL TO 99 SEASONALLY ADJUSTED FOR AUGUST AND DOWN FROM JULY'S REVISED FIGURE OF 100 THE INDEX'S PEAK FOR THE YEAR WAS JUNE'S 104 READING RESIDENTIAL HOUSING SHOWED SCANT GROWTH EDGING UP 1 AS SINGLEFAMILY HOUSING RESPONDED TO LOW MORTGAGE RATES DODGE SAID HOWEVER THE MULTIFAMILY SIDE FELL FROM ITS IMPROVED LEVEL OF RECENT MONTHS NONRESIDENTIAL BUILDING SLID 2 AS THE COMMERCIAL AND INDUSTRIAL SECTOR TUMBLED 9 LEADING THE DECLINE WERE OFFICE AND HOTEL BUILDING WHICH RETURNED TO THE DEEPLY DEPRESSED LEVELS OF EARLIER THIS YEAR AND MANUFACTURING BUILDING WHICH RELAPSED AFTER A RECENT GAIN STORE CONSTRUCTION AND INSTITUTIONAL BUILDING PROVIDED SOME RELIEF IN THE DECLINE WITH STORE CONSTRUCTION MAINTAINING JULY'S PACE THE STRONGEST IN THREE YEARS AND INSTITUTIONAL BUILDING POSTING A 4 GAIN ON GROWING EDUCATIONAL BUILDING DODGE NOTED NONBUILDING CONSTRUCTION IN AUGUST SLID 3 ON DECLINES IN BRIDGE SEWER AND RIVERHARBOR PROJECTS THAT DROP WOULD HAVE BEEN SHARPER WITHOUT SIGNIFICANT GROWTH IN HIGHWAY AND WATER SUPPLY SYSTEM CONTRACTS OVERALL DODGE NOTED HIGHWAY PROJECTS HAVE CLIMBED 12 IN THE FIRST EIGHT MONTHS OF THIS YEAR COMPARED WITH THE SAME PERIOD LAST YEAR AND WOULD HAVE REGISTERED GROWTH EVEN WITHOUT THE PASSAGE OF THE CLINTON ADMINISTRATION'S STIMULUS PACKAGE IN THE SPRING IT ADDED GIVEN JUNE'S STRENGTH THE SLIPPAGE OVER THE NEXT TWO MONTHS WAS NOT SURPRISING PARTICULARLY IN LIGHT OF CONSTRUCTION'S LACKLUSTER PERFORMANCE TO DATE SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS FOR DODGE THE HOPEFUL SIGN IN THE AUGUST DATA WAS A MODEST GAIN FOR SINGLEFAMILY HOUSING WHOSE DISAPPOINTING SHOWING SO FAR THIS YEAR HAD EFFECTIVELY PUT THE CONSTRUCTION RECOVERY ON HOLD STILL SAGGING CONSUMER CONFIDENCE AND REGIONAL ECONOMIC WEAKNESS ARE OUTWEIGHING THE EFFECT OF LOW INTEREST RATES HE ADDED ON AN UNADJUSTED BASIS TOTAL CONSTRUCTION CONTRACT VALUE IN THE JANUARYAUGUST PERIOD WAS UP 3 FROM THE SAME PERIOD IN 1992 MOST OF THAT GROWTH WAS IN THE SOUTH ATLANTIC AND SOUTH CENTRAL REGIONS WHICH EACH POSTED A 9 INCREASE FROM THE YEAREARLIER FIGURE THE NORTHEAST AND THE MIDWEST WERE UP A TENUOUS 1 FROM A YEAR EARLIER WHILE THE WEST SLUMPED 3 9309300060 930930 WHO'S NEWS NICHOLS INSTITUTE PICKS BRAGG TO BE PRESIDENT AND CHIEF EXECUTIVE SAN JUAN CAPISTRANO CALIF NICHOLS INSTITUTE SAID GEORGE L BRAGG A COMPANY DIRECTOR WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE DIAGNOSTIC TESTING CONCERN MR BRAGG 60 SUCCEEDS PAUL BELLAMY 44 WHO WAS ACTING AS INTERIM PRESIDENT MR BELLAMY WILL REMAIN VICE PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR THE COMPANY ALSO SAID IT HAS RETAINED MCKINSEY & CO A MANAGEMENT CONSULTING FIRM AND THE INVESTMENT BANKING FIRM PETER J SOLOMON CO TO REVIEW VARIOUS FUTURE STRATEGIC CORPORATE OPTIONS MR BRAGG IS A FORMER VICE CHAIRMAN OF WESTERN DIGITAL CORP AND HAS RUN A MANAGEMENT CONSULTING PRACTICE HE JOINED THE BOARD IN JANUARY WHEN ALBERT NICHOLS CHAIRMAN REPLACED SEVERAL OF THE COMPANY'S DIRECTORS AS PART OF AN EFFORT TO BRING ON BOARD MEMBERS WHO COULD FOSTER RAPID CORPORATE CHANGES DR NICHOLS CITED EMERGING CLINTON ADMINISTRATION POLICIES ON HEALTH CARE AS A REASON FOR THE RECENT CHANGES AND SAID THE COMPANY IS CONSIDERING A WIDE RANGE OF OPTIONS WHICH COULD RANGE FROM ACQUISITIONS OR PARTNERSHIPS TO REFINANCING OR RESTRUCTURING IT'S A TIME OF DRAMATIC CHANGE DR NICHOLS SAID IN AUGUST NICHOLS INSTITUTE AND SEVERAL OTHER MEDICAL LAB COMPANIES SAID THEY EXPECTED TO RECEIVE SUBPOENAS FROM FEDERAL OFFICIALS INVESTIGATING POSSIBLE IMPROPRIETIES IN SUBMITTING CLAIMS FOR FEDERAL REIMBURSEMENT NICHOLS SAID IT WAS UNAWARE OF ANY IMPROPRIETIES IN CONNECTION WITH MEDICARE OR MEDICAID PROGRAMS AND SAID IT IS PROVIDING THE INFORMATION REQUESTED 9309300059 930930 HELPWANTED ADS INCREASED MODERATELY IN AUGUST FROM JULY NEW YORK HELPWANTED ADVERTISING INCREASED MODERATELY IN AUGUST AS THE JOB MARKET STRUGGLES TO RECOVER FROM CORPORATE DOWNSIZING AND DEFENSE CUTBACKS ACCORDING TO THE CONFERENCE BOARD THE BOARD'S HELP WANTED INDEX AN INDICATOR OF HIRING PLANS CLIMBED TO 104 IN AUGUST UP FOUR POINTS FROM JULY'S 100 THE INDEX WHICH USES 1967 AS A BASE OF 100 WAS UP 11 POINTS FROM 93 A YEAR EARLIER LABOR MARKET IMPROVEMENT CONTINUES TO BE MINIMAL THE JOB MARKET IS STILL TRYING TO RECOVER IN THE MIDST OF CONTINUED CORPORATE DOWNSIZING AS WELL AS CUTBACKS IN DEFENSECONTRACTING SAID KEN GOLDSTEIN AN ECONOMIST AT THE CONFERENCE BOARD ADVERTISING ROSE IN SEVEN OF THE COUNTRY'S NINE REGIONS OVER THE PAST THREE MONTHS THE SOUTH ATLANTIC REGION SHOWED THE SHARPEST INCREASE RISING 113 WHILE THE EAST SOUTH CENTRAL ROSE 107 THE WEST SOUTH CENTRAL 92 AND NEW ENGLAND 59 BUT ADVERTISING VOLUME FELL 28 IN THE MOUNTAIN REGION AND 15 IN THE WEST NORTH CENTRAL REGIONS REGIONALLY THERE WAS A DOWNTURN IN THE MIDWEST IN THE LAST THREE MONTHS AS IT ATTEMPTED TO DRY OUT FROM THE SEVERE FLOODS SAID MR GOLDSTEIN THERE'S SOME POSITIVE NEWS TO BE SEEN IN THE MODEST RISE IN JOB ADVERTISING IN THE PACIFIC REGION OVER THE LAST THREE MONTHS SUGGESTING THAT THE LONG SLIDE IN THE MOST TROUBLED PART OF THE COUNTRY MAY HAVE REACHED BOTTOM THE CONFERENCE BOARD SURVEYS HELPWANTED ADVERTISING VOLUME IN 51 MAJOR NEWSPAPERS EVERY MONTH THE MEASURE IS CONSIDERED A BAROMETER OF CHANGE IN THE SUPPLY OF JOBS BECAUSE ADVERTISING VOLUME IS SENSITIVE TO LABOR MARKET CONDITIONS 9309300058 930930 ECONOMY OPEC MEMBERS AGREE ON QUOTAS FOR OIL OUTPUT CRUDE PRICES SOAR AS ACCORD IS EXTENDED TO 6 MONTHS UNUSUAL ALLIANCE ARISES BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA OPEC MEMBERS AGREED ON HOW TO DIVIDE THEIR NEW PRODUCTION LEVEL AND SURPRISINGLY EXTENDED THE OUTPUT ARRANGEMENT TO SIX MONTHS RATHER THAN THE EXPECTED THREE THE STEPS ARE DESIGNED TO CURB RUNAWAY PRODUCTION BY MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AND SHORE UP OIL PRICES INDEED ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT CRUDE FOR NOVEMBER DELIVERY ROSE 69 CENTS A BARREL TO 1735 IN EXTREMELY HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE NOVEMBER CRUDE SOARED 71 CENTS A BARREL TO 1867 PRICES MAY RISE EVEN FURTHER IF THE ASSESSMENTS OF THE OIL MINISTERS OF SEVERAL LEADING EXPORTERS ARE CORRECT IT IS A VERY STRONG AGREEMENT FOR THE MARKET SAID IRAN'S OIL MINISTER GHOLAMREZA AGHAZADEH ADDING THAT HE EXPECTED PRICES FOR OPEC OIL WHICH USUALLY LAG BEHIND THE NORTH SEA AND US BENCHMARK CRUDES TO RISE AS MUCH AS 4 A BARREL TO BETWEEN 19 AND 20 THE ACCORD SETS A PREVIOUSLY AGREEDUPON CEILING OF 245 MILLION BARRELS A DAY FOR OPEC IT IS INTENDED TO REDUCE ACTUAL OUTPUT BY SOME 200000 BARRELS A DAY AND RAISE WORLD OIL PRICES AS A RESULT THERE HAD BEEN SETBACKS IN THE NEGOTIATIONS THIS WEEK ON HOW TO ALLOCATE THE PRODUCTION AMONG THE 12 MEMBERS DESPITE THAT PRICES HAD BEEN RISING ON EXPECTATIONS THAT OPEC WOULD COME TO AN AGREEMENT THEN WHEN IT BECAME CLEAR THAT THE MINISTERS NOT ONLY HAD REACHED AGREEMENT LAST NIGHT ON NEW PRODUCTION QUOTAS FOR ALL THE OPEC COUNTRIES BUT ALSO HAD EXTENDED THE ARRANGEMENT BEYOND THE FOURTH QUARTER PRICES SURGED THE ACCORD WAS HARD WON THERE WERE TIMES DURING THE FIVE DAYS OF BARGAINING HERE WHEN THE OPEC MEETING APPEARED ENDANGERED BY CONFLICTING CLAIMS BUT AN UNUSUAL ALLIANCE BETWEEN LONGTIME RIVALS SAUDI ARABIA AND IRAN INITIATED BY THEIR HEADS OF STATE AND CARRIED THROUGH BY THEIR OIL MINISTERS HERE HELPED SECURE THE BREAKTHROUGHS NEEDED FOR A PACT THAT WOULD BE CREDIBLE IN SKEPTICAL OIL MARKETS AND THE FINAL BREAKTHROUGH CAME JUST BEFORE THE FINAL SESSION OF THE MINISTERS LAST NIGHT THE EMIR OF KUWAIT HAVING RECEIVED A PHONE CALL YESTERDAY FROM IRAN'S PRESIDENT CALLED THE KUWAITI DELEGATES AND TOLD THEM TO BE ACCOMMODATING ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER THEN TOLD THE OTHERS THAT HE WAS WILLING TO ACCEPT THE QUOTA OF TWO MILLION BARRELS A DAY THAT WAS BEING OFFERED FORGOING THE 160000 BARRELS EXTRA HE HAD BEEN DEMANDING THAT CLINCHED THE DEAL A MAJOR OPEC GOAL AT THIS MEETING WAS TO RETURN KUWAIT TO THE FOLD THE EMIRATE HAD BEEN OUTSIDE THE PRODUCTION ARRANGEMENTS SINCE LAST JUNE WHEN IT REJECTED ITS ALLOCATION AS BEING INSUFFICIENT SINCE ITS OUTPUT HAS CLIMBED AS EXPECTED TO MORE THAN TWO MILLION BARRELS A DAY FROM THE FORMER QUOTA LEVEL OF 16 MILLION THE OIL MINISTERS HAILED THE AGREEMENT AS ONE OF THE BEST EVER AND ONE THAT HAD BEEN METICULOUSLY CRAFTED HISHAM NAZER SAUDI ARABIA'S OIL MINISTER WHO HAD A SIGNIFICANT ROLE IN THE OPEC DEVELOPMENTS HERE SAID THE AGREEMENT WOULD HAVE A VERY POSITIVE IMPACT ON THE MARKET AS WE'VE ALREADY SEEN WHILE THE AGREED CUT IN SUPPLY APPEARS MODEST AT AROUND 200000 BARRELS A DAY IT COMES AT A TIME WHEN DEMAND FOR OIL IS RISING SEASONALLY AND BY EXTENDING THE AGREEMENT TO COVER TWO QUARTERS RATHER THAN THE USUAL THREE MONTHS OF RECENT PACTS OPEC MAY AVOID THE QUARTERLY HIATUS THAT ACCOMPANIES EACH RENEGOTIATION OF OUTPUT ALLOCATIONS THE JOCKEYING FOR LARGER QUOTAS BY SOME OPEC MEMBERS WELL IN ADVANCE OF SUCH MEETINGS OFTEN HAS PUT DOWNWARD PRESSURE ON PRICES YESTERDAY'S AGREEMENT SPECIFIES INDIVIDUAL COUNTRY QUOTAS THAT ADD UP TO THE CEILING OF 245 MILLION BARRELS A DAY AGREED UPON MONDAY WHILE THIS IS 900000 BARRELS A DAY HIGHER THAN THE CURRENT WIDELY IGNORED LIMIT OF 236 MILLION BARRELS A DAY IT IS LOWER THAN ACTUAL OUTPUT ESTIMATED AROUND 247 MILLION BARRELS A DAY THE ACCORD IMPLIES A CUT IN SUPPLY SAUDI ARABIA'S MR NAZER NOTED IMPLICITLY ACKNOWLEDGING OPEC'S EXCESS OUTPUT THE EXCESS VOLUMES HAVE BEEN SOLD AT EVER BIGGER DISCOUNTS PUSHING DOWN OIL PRICES RECENTLY TO THREEYEAR LOWS SIGNIFICANTLY MR NAZER AGREED TO FREEZE OUTPUT OF SAUDI ARABIA OPEC'S BIGGEST PRODUCER AT EIGHT MILLION BARRELS A DAY FORGOING THE PROPORTIONATE INCREASE IMPLIED BY THE HIGHER CEILING THE UNITED ARAB EMIRATES ALSO AGREED TO HOLD ITS OUTPUT AT ITS CURRENT QUOTA OF 2160000 BARRELS A DAY A CRUCIAL TURNING POINT IN THE BARGAINING FOR QUOTAS CAME YESTERDAY MORNING WHEN IRAN'S MR AGHAZADEH DECIDED TO ACCEPT AN OFFER BY OTHERS RAISING HIS QUOTA TO 36 MILLION BARRELS A DAY FROM THE 33 MILLION BUT ELATION OVER THIS DEVELOPMENT WAS DAMPED BY KUWAIT WHICH INSISTED THAT IT BE ALLOWED TO PRODUCE MORE THAN THE TWO MILLAS BEING OFFERED IRAN HAS BEEN WIDELY REPORTED TO BE PRODUCING 37 MILLION BARRELS A DAY WHILE KUWAIT HAS CLAIMED TO BE PRODUCING NEARLY 22 MILLION 9309300057 930930 INTERNATIONAL ULTIMATUMS FLY AS YELTSIN MEETS NEW RESISTANCE PARLIAMENT GETS DEADLINE TO VACATE BUILDING FINDS REGIONAL BACKING BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN GAVE HIS DIEHARD LEGISLATIVE OPPONENTS UNTIL MONDAY TO LEAVE THE RUSSIAN PARLIAMENT BUILDING OR RISK GRAVE CONSEQUENCES PRESIDENTIAL AIDES SAY MR YELTSIN'S PLAN IS TO WAIT FOR THE MAJORITY OF DEPUTIES TO ABANDON THEIR VIGIL AT THE SOCALLED WHITE HOUSE VOLUNTARILY HOWEVER SUPPORTERS OF THE LEGISLATORS ARE CONTINUING TO RALLY NEAR THE WHITE HOUSE DESPITE FREEZING TEMPERATURES AND A STEADY WET SNOW RESISTANCE TO MR YELTSIN IS MOUNTING IN SOME REGIONS WITH SOME REGIONAL LEADERS PREPARING TO IMPOSE ECONOMIC SANCTIONS AGAINST MOSCOW IF THE PRESIDENT DOESN'T ACCEPT A COMPROMISE AND MORE THAN 100 DEPUTIES WHO HAD LEFT THE BUILDING AND THEN WERE PREVENTED FROM REENTERING BY GUARDS ARE MEETING IN EMERGENCY QUARTERS TO CARRY ON THEIR FIGHT THE SUPREME SOVIET HAD A LOT OF PLANS OF ACTION LIKE CONTACTING THE REGIONS SAID NIKOLAI KHERETONOV CHAIRMAN OF THE COORDINATING COMMITTEE THESE EXILE DEPUTIES HAVE FORMED WE HAVE TO CONTINUE THESE PLANS FROM THE OUTSIDE AT LEAST 117 DEPUTIES HAVE SIGNED UP AS MEMBERS OF THE PARLIAMENTINEXILE THEIR NEW HEADQUARTERS IS MOSCOW'S KRASNOPRESNENSKY DISTRICT COUNCIL BUILDING THE GROUP INTENDS TO APPROACH THE COMMANDER OF RUSSIA'S 14TH ARMY A HERO AMONGST THE NATIONALIST CAMP FOR HELP THE DEPUTIES REPORTED A DECISION BY REGIONAL LEADERS MEETING IN THE SIBERIAN CITY OF NOVOSIBIRSK SOME 140 DELEGATES FROM REGIONAL COUNCILS REPRESENTING 14 OF SIBERIA'S 19 DISTRICTS MET WEDNESDAY AND GAVE THE PRESIDENT THEIR OWN ULTIMATUMS THEY SENT A TELEGRAM TO THE PRIME MINISTER THREATENING TO SABOTAGE TRAFFIC ON THE TRANSSIBERIAN RAILWAY IF THE BLOCKADE OF THE WHITE HOUSE WASN'T LIFTED WITHIN THREE HOURS THAT DEADLINE PASSED WITHOUT IMMEDIATE REPORTS OF RAIL STOPPAGES THEY ALSO GAVE MR YELTSIN UNTIL SUNDAY TO RETRACT HIS DECREE ABOLISHING PARLIAMENT STOP CENSORSHIP AND FREE THE WHITE HOUSE OR ELSE THEY WOULD LAUNCH A SERIES OF ECONOMIC SANCTIONS AND POLITICAL ACTIONS AGAINST THE CENTRAL GOVERNMENT AMONG THESE THEY THREATENED TO WITHHOLD TAXES AND DELIVERIES OF COAL OIL AND GAS THEY SAID THEY WOULD OFFER THE DISBANDED CONGRESS OF PEOPLE'S DEPUTIES A SIBERIAN CITY TO USE AS ITS HEADQUARTERS THE DANGER OF SUCH REBELLION BY THE REGIONS IS PART OF THE REASON BEHIND MR YELTSIN'S DECISION TO STEP UP PRESSURE ON THE WHITE HOUSE RATHER THAN JUST LET THE CRISIS FADE AWAY PRESIDENTIAL AIDES SAY IT ISN'T CLEAR EXACTLY HOW MUCH MUSCLE THE REGIONAL LEADERS CAN PUT BEHIND THEIR THREATS AS WITH THE CENTRAL GOVERNMENT MANY REGIONS HAVE BEEN OPERATING WITH TWO PARALLEL LEADERSHIPS THE COUNCILS AND THE ADMINISTRATIONS THE LATTER ARE HEADED BY MR YELTSIN'S HANDPICKED GOVERNORS IF THEY TRY SUCH SABOTAGE OF COURSE YELTSIN HAS ENOUGH MILITARY STRENGTH IN OTHER AREAS TO KEEP RAILROADS RUNNING SAID AN AIDE TO THE PRESIDENT BUT THE MILITARY HAS GROWN REGIONALIZED IN SOME AREAS IT IS THE LOCAL COUNCIL BOSSES WHO KEEP THE SOLDIERS FED AND THE LOYALTY OF THOSE TROOPS ISN'T CERTAIN MILITARY ANALYSTS SAY ONE OF THE DEPUTIES ON THE OUTSIDE REPORTED TO THE GROUP OF HIS MEETING WITH PRIME MINISTER VIKTOR CHERNOMYRDIN HE SAID HE ASKED THAT HEATING AND LIGHTS BE TURNED BACK ON IN THE WHITE HOUSE AND THAT MEDICAL ASSISTANCE BE ALLOWED IN THE DEPUTY SAID HE PROPOSED SOME COMPROMISES BUT THAT MR CHERNOMYRDIN OFFERED ONLY THE CATEGORICAL DEMAND THAT THOSE IN THE PARLIAMENT TURN IN THEIR ARMS DEPUTIES WARNED THAT THE DANGER OF BLOODSHED REMAINED HIGH THERE ARE A LOT OF WEAPONS ALL AROUND THE WHITE HOUSE AND INSIDE THERE ARE HUNDREDS OF TIMES MORE REPORTED RAMAZAN ABDULATIPOV CHAIRMAN OF THE UPPER HOUSE OF THE NOW DISBANDED PARLIAMENT ALBERT MAKASHOV WHO WAS NAMED DEPUTY DEFENSE MINISTER BY THE REBEL GOVERNMENT WARNED FROM THE WHITE HOUSE BALCONY THAT IF GOVERNMENT TROOPS MOVED IN TOO CLOSE HIS TROOPS WOULD SHOOT TO KILL IN THE EARLY EVENING PARLIAMENT SUPPORTERS BEGAN GATHERING AGAIN AND THERE WERE SKIRMISHES AS THERE HAD BEEN TUESDAY NIGHT ELITE GUARDS WEARING HELMETS AND CARRYING SHIELDS AND CLUBS GRADUALLY PUSHED THE CROWD BACK INTO A SUBWAY STATION 9309300056 930930 CAUTION FLAG IS UP FOR JAPANESE BONDS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE PROSPECT OF A BUDGET DEFICIT IN JAPAN IS SENDING UP A CAUTION FLAG OVER THE THREEYEARRALLY IN JAPANESE GOVERNMENT BONDS A BUDGET DEFICIT IN JAPAN MANY PEOPLE IN THE FINANCIAL MARKETS BELIEVE THE RECESSION IS CERTAIN TO FORCE THE JAPANESE GOVERNMENT TO ISSUE DEBT TO FINANCE PLANNED EXTRAORDINARY SPENDING AND A SHORTFALL IN TAX RECEIPTS A BUDGET DEFICIT SEEMS LIKELY AND THE GOVERNMENT'S REVENUE SHORTFALL COULD WIDEN IF POLICY MAKERS PUSH THROUGH A MUCHDISCUSSED INCOMETAX CUT TO STIMULATE DOMESTIC DEMAND THAT WOULD BE BAD NEWS FOR THE WORLD'S SECONDLARGEST BOND MARKET AFTER THE ONE IN THE US JAPAN'S 180 TRILLION YEN 17 TRILLION MARKET IN GOVERNMENT BONDS HAS BEEN ON A ROLL SINCE SEPTEMBER 1990 STRONG DEMAND HAS SENT YIELDS SKIDDING TO 38 AND KEPT PRICES RISING THE BENCHMARK JAPANESE GOVERNMENT BOND HAS RISEN 11 SINCE THE START OF 1993 AND US INVESTORS GOT AN ADDITIONAL 18 BONUS FROM THE RISE IN THE VALUE OF THE YEN NOW THOUGH FEARS ARE GROWING THAT THE JAPANESE GOVERNMENT'S ECONOMIC STIMULUS PLANS WILL UNDERMINE THE RALLY ESTIMATES FOR THE THREE DIFFERENT PACKAGES ANNOUNCED SINCE SEPTEMBER 1992 RANGE FROM A TOTAL OF 95 TRILLION TO 15 TRILLION YEN THE GOVERNMENT HAS TO HAVE FUNDS FOR ITS STIMULUS PACKAGES THAT MEANS SUPPLY IN THE BOND MARKET WILL INCREASE SAYS TOMONARI KADOUMI ASSISTANT MANAGER OF THE DOMESTIC BOND INVESTMENT DEPARTMENT AT SUMITOMO LIFE CO WHICH HOLDS THREE TRILLION YEN IN BONDS MR KADOUMI EXPECTS MORE BONDS WILL HIT THE MARKET BEFORE YEAR END EVENTUALLY CAUSING BOND YIELDS TO RISE AS HIGH AS 5 ON ITS OWN THE NEW MONEY FOR FISCAL STIMULUS MIGHT NOT BE A PROBLEM FOR THE MARKET THE GOVERNMENT CAN KEEP NEW BONDS AWAY FROM PRIVATE INVESTORS BY SELLING THEM TO ITS OWN TRUST FUND BUREAU WHICH HAS ACCESS TO FUNDS FROM THE MASSIVE POSTAL SAVINGS SYSTEM BUT THERE'S ALSO TALK OF A JAPANESE INCOMETAX CUT BEFORE MARCH WHICH COULD STIMULATE THE ECONOMY BUT LEAVE THE GOVERNMENT WITH A REVENUE SHORTFALL AND A CALL FOR BONDS TO BRIDGE THE GAP THE HOSOKAWA ADMINISTRATION IN JAPAN IS SQUABBLING ABOUT THE WISDOM AND EFFICACY OF A TAX CUT BUT EVEN OFFICIALS AT THE TIGHTFISTED FINANCE MINISTRY CONCEDE THAT A CONTINUING STREAM OF BAD ECONOMIC NEWS MAKES A TAX CUT POSSIBLE BUSINESS EXECUTIVES AND SOME SUPPORTERS OF PRIME MINISTER MORIHIRO HOSOKAWA HAVE ALREADY COME OUT IN FAVOR OF AN INCOMETAX CUT WHICH OTHER DEVELOPED NATIONS ARE ALSO URGING JAPAN TO PURSUE BUT THEY ARE THUS FAR OPPOSED BY BUREAUCRATS ESPECIALLY AT THE FINANCE MINISTRY WHO DON'T WANT TO SEE THE COUNTRY SLIDE BACK INTO THE DEFICIT FINANCING FROM WHICH JAPAN ONLY EMERGED IN 1989 AFTER 14 YEARS EVEN IF THE HOSOKAWA ADMINISTRATION PLEDGES TO OFFSET ANY TAX REVENUE SHORTFALL WITH A FUTURE INCREASE IN JAPAN'S 3 CONSUMPTION TAX THE PROSPECT OF EVEN A TEMPORARY SHORTFALL MAKES JAPANESE BUREAUCRATS UNEASY IF THERE IS A BUDGET DEFICIT DON'T EXPECT THE GOVERNMENT TO ADMIT IT THE JAPANESE GOVERNMENT CAN CHOOSE TO ISSUE CONSTRUCTION REFINANCING OR DEFICIT BONDS A HISTORICAL AVERSION TO RUNNING IN THE RED MAKES NEW DEFICIT BONDS THE LEAST LIKELY SOURCE OF NEW FUNDING BUT TO THE MARKET THE BONDS ARE ALL THE SAME AND ANY NEW ISSUE MEANS ADDED SUPPLY IT'S NO SECRET THAT THE GOVERNMENT WILL HAVE TO ISSUE DEFICIT BONDS AND CALL IT SOMETHING ELSE SAYS AARON COHEN SENIOR FINANCIAL ECONOMIST AT DAIWA SECURITIES CO THERE'S A LOT RIDING ON A CONTINUED RALLY IN THE MARKET BOND DEALING HAS BEEN THIS YEAR'S SURPRISE PROFIT MAINSTAY FOR JAPANESE SECURITIES COMPANIES AND LIFE INSURERS LOW RATES ALSO ARE IMPORTANT TO BORROWERS TRYING TO EXTRICATE THEMSELVES FROM THEIR DEBT LOADS THIS PUTS THE GOVERNMENT IN THE DIFFICULT POSITION OF HAVING TO SPEND MONEY ON THE ECONOMY AT THE RISK OF HURTING ITS MOST VIBRANT FINANCIAL MARKET THE GOVERNMENT IS GOING TO FACE A PARADOX SAYS MR COHEN THE ECONOMY WILL BE WEAK AND THERE WILL BE PRESSURE FOR MORE STIMULUS AND THUS MORE BORROWING HE SAYS BUT THEY'LL RAISE INTEREST RATES IF THERE'S TOO MUCH DEFICIT SPENDING MR COHEN THINKS THE YIELD ON BONDS CAN FALL A BIT MORE POSSIBLY TO 375 BEFORE THE RALLY IS OVER IT'S STILL TOO EARLY TO SELL HE SAYS BUT ADDS THERE ARE PROFIT OPPORTUNITIES IN THE MARKET ALREADY OTHER FACTORS ALSO WEIGH ON JAPANESE BONDS FOR ONE THING REAL YIELDS IN JAPAN THE AMOUNT A BOND EARNS AFTER INFLATION ARE AMONG THE LOWEST IN THE WORLD TEMPTING SOME INTERNATIONAL INVESTORS TO MOVE TO COMPETING MARKETS THE YEN IS ALSO COMING OFF ALLTIME HIGHS WHICH COULD MAKE FOREIGN INVESTORS TAKE PROFITS AND COMPETITION IS INCREASING FOR INVESTORS FROM THE SMALL BUT GROWING JAPANESE CORPORATE BOND MARKET TO BE SURE THE SAME FACTOR THAT FUELED THE JAPANESE BOND RALLY FROM THE START REMAINS STRONG FEAR OF EVERY OTHER INVESTMENT BY SAFETYOBSESSED JAPANESE INVESTORS WHO WERE BURNED BY A TUMBLE IN THEIR STOCK MARKET AND MONEY LOST ON OVERSEAS INVESTMENTS WHEN THE YEN ROSE AGAINST FOREIGN CURRENCIES FOR THIS KIND OF JAPANESE INSTITUTIONAL INVESTOR THE BOND MARKET IS LIKE A SAVINGS BANK AND JUST AS INDIVIDUAL JAPANESE WORRIED ABOUT THE FUTURE KEEP PILING MONEY INTO SAVINGS ACCOUNTS THE BIG INSTITUTIONS MAY KEEP BUYING BONDS AT ANY PRICE UNTIL THEY'RE CERTAIN ABOUT JAPAN'S ECONOMIC FUTURE MR KADOUMI SAYS SUMITOMO LIFE WOULD PROBABLY KEEP BUYING BONDS EVEN IF THE RALLY FIZZLES THERE IS NO OTHER MARKET IN WHICH WE CAN INVEST HE ADDS 9309300055 930930 MURDOCH WILL RESTART THE NEW YORK POST AS CRAFT UNIONS YIELD NEW YORK REUTER MEDIA BARON RUPERT MURDOCH AGREED TO RESTART OPERATIONS AT THE NEW YORK POST AND WILL PROCEED WITH HIS PLANNED PURCHASE OF THE UNPROFITABLE TABLOID HIS SPOKESMAN SAID THE DECISION CAME AFTER EIGHT CRAFT UNIONS AGREED TO CROSS THE PICKET LINES PUT UP BY THE STRIKING NEWSPAPER GUILD WHICH REPRESENTS 290 EDITORIAL CLERICAL AND ADVERTISING WORKERS THE UNION HAD GONE ON STRIKE MONDAY SHUTTING DOWN THE TABLOID THE SPOKESMAN SAID THE POST WILL BE ON THE STREETS TOMORROW AND THAT MR MURDOCH WILL COMPLETE HIS 27 MILLION PURCHASE BY THE END OF THE WEEK IT WAS UNCLEAR WHAT THE RESPONSE OF THE GUILD WOULD BE AND THERE WAS NO IMMEDIATE STATEMENT FROM THE UNION MR MURDOCH'S TURNAROUND WAS YET ANOTHER LASTSECOND RESCUE FOR THE LONGSUFFERING POST WHICH HAS BEEN THROUGH A SERIES OF CRISES AS IT LOOKED FOR A NEW BUYER WHILE LOSING ABOUT 15 MILLION A YEAR THE AGREEMENT CAME AFTER MR MURDOCH HELD LONG TALKS WITH GEORGE MCDONALD HEAD OF THE ALLIED PRINTING TRADES COUNCIL WHICH REPRESENTS THE EIGHT CRAFT UNIONS AT THE PAPER THE GUILD WENT ON STRIKE AFTER FAILING TO REACH AGREEMENT ON A NEW CONTRACT THE UNION IS STAUNCHLY OPPOSED TO MR MURDOCH'S PLAN TO SLASH SEVERANCE PAY AND TO HAVE THE RIGHT TO FIRE WHOMEVER HE WANTS WITHIN THE FIRST FOUR MONTHS OF OWNERSHIP 9309300054 930930 FERROFLUIDICS CORP REPORTS A NET LOSS FOR FISCAL 4TH PERIOD NASHUA NH FERROFLUIDICS CORP REPORTED A NET LOSS FOR THE FISCAL FOURTH QUARTER ENDED JUNE 30 OF 99 MILLION OR 183 A SHARE AFTER SLASHING THE VALUATION OF A JAPANESE INVESTMENT THE REPORT CAPS A TUMULTUOUS PERIOD IN WHICH FERROFLUIDICS REPORTED IT HAD OVERSTATED SALES AND EARNINGS DURING THE FIRST THREE QUARTERS OF FISCAL 1993 HAD REMOVED ITS CHIEF EXECUTIVE AND HAD DISCLOSED A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION OF ITS REPORTING PRACTICES SHAREHOLDERS ALSO HAVE FILED A SUIT THAT SEEKS CLASSACTION STATUS OVER ITS DISCLOSURE PRACTICES AFTER THE LONGDELAYED FINANCIAL REPORT FOR FISCAL 1993 WAS RELEASED YESTERDAY FERROFLUIDICS' STOCK ROSE 625 CENTS TO 725 OR 94 IN LATE NATIONAL OVERTHECOUNTER TRADING THE RISE APPARENTLY INDICATED THAT INVESTORS WERE RELIEVED THE NEWS WASN'T WORSE PAUL F AVERY JR WHO BECAME CHIEF EXECUTIVE A FEW WEEKS AGO SAID WITH THE BALANCE SHEET ADJUSTMENTS BEHIND US WE CAN FOCUS ON BUILDING FERROFLUIDICS' CORE BUSINESS PROFITABLY FERROFLUIDICS MAKES MAGNETIC FLUIDS USED IN DISK DRIVES AND SEMICONDUCTORMAKING EQUIPMENT IN THE FOURTH QUARTER OF 1992 FERROFLUIDICS REPORTED NET INCOME OF 451000 OR NINE CENTS A SHARE REVENUE FOR THE FOURTH QUARTER ROSE 10 TO 74 MILLION FROM 67 MILLION FOR THE FULL YEAR FERROFLUIDICS REPORTED A NET LOSS OF 104 MILLION OR 203 A SHARE AFTER THE 64 MILLION WRITEDOWN OF ITS INVESTMENT IN FUJI SEIKI INC AND SOME OTHER INTERNATIONAL WRITEDOWNS FERROFLUIDICS OWNS 19 OF FUJI SEIKI A SEMICONDUCTOR EQUIPMENT MAKER AFTER INVESTING 75 MILLION 25 MILLION OF WHICH WAS REPAID VIA LICENSE FEES IN FISCAL 1992 FERROFLUIDICS REPORTED NET INCOME OF 34 MILLION OR 83 CENTS A SHARE AFTER A 1 MILLION GAIN FROM A TAXLOSS CARRYFORWARD REVENUE FOR THE YEAR ROSE 11 TO 296 MILLION FROM 266 MILLION 9309300053 930930 PRESIDENT CLINTON IS EXPECTED TO REQUIRE EXECUTIVE BRANCH TO USE RECYCLED PAPER BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AFTER MORE THAN A MONTH OF FEVERISH LOBBYING BY US PAPER COMPANIES AND ENVIRONMENTAL GROUPS IS EXPECTED TO SET A STRICT RECYCLING STANDARD FOR ALL PAPER PURCHASED BY THE EXECUTIVE BRANCH ALTHOUGH PRESIDENT CLINTON HASN'T YET SIGNED OFF ON THE MATTER ADMINISTRATION OFFICIALS SAID HE IS EXPECTED THIS WEEK TO APPROVE THE INITIATIVE WHICH FOR THE FIRST TIME WOULD REQUIRE FEDERAL AGENCIES TO PURCHASE PAPER RECYCLED FROM CONSUMER ITEMS SUCH AS NEWSPAPERS AND MAGAZINES THE FEDERAL GOVERNMENT BUYS 1 TO 2 OF ALL PAPER MANUFACTURED IN THE US AND ITS PURCHASING STANDARDS TEND TO BE ADOPTED BY PRIVATE INDUSTRY ENVIRONMENTALISTS PRAISED THE PENDING EXECUTIVE ORDER AS A MAJOR STEP FORWARD FOR THEIR CAUSE THIS IS PROBABLY THE MOST SIGNIFICANT THING THE FEDERAL GOVERNMENT HAS DONE FOR RECYCLING IN THE LAST DECADE SAID JOHN RUSTIN AN ECONOMIC ANALYST FOR THE ENVIRONMENTAL DEFENSE FUND THE PAPER INDUSTRY HAD LOBBIED HARD TO WEAKEN THE EXECUTIVE ORDER IT HAS URGED AMONG OTHER THINGS THAT THE RECYCLING REQUIREMENT BE INTERPRETED BROADLY TO INCLUDE SCRAPS FROM THE MANUFACTURING PROCESS WHICH ARE EASIER TO CONVERT TO PAPER THAN POSTCONSUMER ITEMS SUCH AS RECYCLED NEWSPAPERS AMONG THOSE WHO WEIGHED IN FOR THE PAPER COMPANIES WERE LEE THOMAS A FORMER EPA ADMINISTRATOR WHO NOW IS SENIOR VICE PRESIDENT FOR ENVIRONMENT AND GOVERNMENT AFFAIRS AT GEORGIAPACIFIC CORP BETSEY WRIGHT A FORMER CLINTON CAMPAIGN AIDE AND GUBERNATORIAL CHIEF OF STAFF NOW WORKING FOR THE WASHINGTON LOBBYING FIRM OF WEXLER REYNOLDS FULLER HARRISON & SCHULE AND SENATE MAJORITY LEADER GEORGE MITCHELL WHOSE HOME STATE OF MAINE INCLUDES SEVERAL PULP AND PAPER PLANTS MS WRIGHT HELPED SET UP A WHITE HOUSE MEETING FOR THE AMERICAN FOREST AND PAPER ASSOCIATION THE PAPER INDUSTRY DID SUCCEED IN ELIMINATING FROM THE PROPOSAL A PROVISION THAT WOULD HAVE REQUIRED FEDERAL AGENCIES TO ESTABLISH GOALS FOR HOW MUCH OF THE PAPER THEY PURCHASE WOULD BE TOTALLY CHLORINEFREE PAPER BY 1995 THEY FAILED TO PERSUADE CLINTON ADMINISTRATION OFFICIALS TO LOOSEN THE RECYCLING REQUIREMENTS PARTLY BECAUSE THEY HAD THE SUPPORT OF VICE PRESIDENT AL GORE ANOTHER GROUP THAT PROVED INFLUENTIAL WAS THE US CONFERENCE OF MAYORS WHICH ARGUED AT A WHITE HOUSE MEETING EARLIER THIS WEEK THAT TOUGH RECYCLING STANDARDS ARE NEEDED TO BOOST LOCAL RECYCLING EFFORTS WITHOUT MARKETS TO SELL RECYCLED PAPER WE DON'T THINK WE CAN SUSTAIN THESE RECYCLING PROGRAMS OVER TIME SAID DAVID GATTON SENIOR ENVIRONMENTAL ADVISER FOR THE US CONFERENCE OF MAYORS IN AN INTERVIEW YESTERDAY BY LATE YESTERDAY THE PRECISE LANGUAGE OF THE EXECUTIVE ORDER HAD YET TO BE DETERMINED BUT ADMINISTRATION OFFICIALS SAID THE ORDER COULD REQUIRE THAT PAPER PURCHASED BY EXECUTIVEBRANCH AGENCIES HAVE RECYCLED CONTENT AS HIGH AS 20 IN 1994 AND 30 IN 1998 WHICH WOULD REPRESENT A STRONG VICTORY FOR ENVIRONMENTALISTS PAPER COMPANIES HAD BEEN PUSHING FOR A 10 STANDARD AND EARLIER THIS MONTH APPEARED TO HAVE PREVAILED THERE IS BROAD AGREEMENT IN THE WHITE HOUSE FOR THE NEED FOR A STRONG AND EFFECTIVE EXECUTIVE ORDER SAID MARLA ROMASH A SPOKESWOMAN FOR VICE PRESIDENT GORE AND THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY 9309300051 930930 BUSINESS BRIEF ALCO STANDARD CORP FIRM TO TAKE PRETAX CHARGE OF 175 MILLION IN 4TH PERIOD ALCO STANDARD CORP SAID IT WILL TAKE A PRETAX CHARGE OF 175 MILLION FOR THE FISCAL FOURTH QUARTER FOR A MAJOR RESTRUCTURING OF ITS 6 BILLION PAPER DISTRIBUTION BUSINESS WHICH HAS BEEN HURT BY DEPRESSED PAPER PRICES ALCO BASED IN VALLEY FORGE PA IS A DISTRIBUTOR OF PAPER AND COPIER MACHINES THE COMPANY SAID ITS MOVE IS INTENDED TO SHARPLY CUT INTERNAL COSTS IN ORDER TO MEET FINANCIAL GOALS FOR COMING YEARS THE QUARTER ENDS SEPT 30 THE COMPANY'S OPERATING PROFIT FOR ITS DOMESTIC PAPER OPERATIONS IS CURRENTLY 24 OF ITS REVENUE OF 8 BILLION AS A RESULT OF THE RESTRUCTURING AND ASSUMING FLAT REVENUE WE SHOULD MEET OR EXCEED A 4 OPERATING PROFIT TARGET OVER THE NEXT THREE YEARS SAID ALCO CHAIRMAN RAY B MUNDT OVER THE NEXT THREE YEARS ALCO EXPECTS TO LAY OFF OR LOSE THROUGH ATTRITION AS MANY AS 1600 OR 20 OF THE 8000 EMPLOYEES AT ITS US PAPER DISTRIBUTION BUSINESS ASSUMING FLAT REVENUE 9309300050 930930 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN A TENNIS SLUMP TEAMS UP WITH DEEP DISCOUNTING TO DEPRESS SOME MERCHANDISERS SPECIALTY TENNIS SHOPS SUFFER SUMMER SALES DROPS OF 1040 DUE TO THE GAME'S SLIDE THAT BEGAN LAST YEAR PLUS PRICE CUTTING HIGH INVENTORY BAD WEATHER AND THE ALLURE OF OTHER SPORTS SUCH AS ROLLERBLADING AT VERTEL'S A CHICAGO SHOP RACKET SALES FELL 40 WHILE RUNNING GEAR GAINED BUT CHICAGO TENNIS CO HAD AN EXCELLENT SUMMER WITH SALES UP 1015 THANKS TO DISCOUNTS PROMOS AND AN INDOOR TRYOUT AREA HOUSTON'S SUN & SKI SPORTS SAYS SALES OF TENNIS GOODS FELL 20 AS PLAYERS TURN TO OTHER SPORTS IN NEW YORK WE'RE HAVING A PRICE WAR SAYS MARK MASON OF MASON'S TENNIS MART HE CUT PRICES UP TO 50 DURING THE US OPEN MANY MOMANDPOP SHOPS STRESS SERVICES SUCH AS ONEDAY STRINGING AND FREE DELIVERY BUT BUILDUP OF CHAINS LIKE SPORTS AUTHORITY AND WALMART PUMPED UP STOCKS JUST AS THE SPORT SAGGED SO NOW WE'RE SIDEBALLED BY A LOT OF INVENTORY SAYS EUGENE SCOTT PUBLISHER OF TENNIS WEEK WILSON SPORTING GOODS FINDS NICE NICHES IN HIGHEND RACKETS AND MODERATEPRICE SHOES TOTAL INDUSTRY SHIPMENTS OF BALLS AND RACKETS IN THE FIRST HALF FELL 89 AFTER A 25 DROP AT YEAR END SAYS WILSON DOGGY DELTOIDS LOOK LIKE A SPECIALTY NICHE TO SOME VETERINARIANS THE AMERICAN CANINE SPORTS MEDICINE ASSOCIATION PROMOTES THE STUDY AND RESEARCH OF HEALTH PROBLEMS OF CANINE ATHLETES SUCH AS GREYHOUND RACERS SLED DOGS K9 CORPS AND PLAIN OLD BOWSERS WHO LIKE TO JOG AND PLAY FRISBEE WITH THE FOLKS WE'RE DOING MORE AND MORE WITH OUR PETS AND SHOULD GIVE THEM THE VERY BEST CARE SAYS TERRANCE TERLEP A FT MYERS FLA VET AND PRESIDENT OF THE ASSOCIATION THE GROUP AIMS TO HAVE CANINE SPORTS MEDICINE ACCREDITED AS CANINE DENTISTRY AND NUTRITION ARE AMONG THE GROUP'S SUPPORTERS IS QUAKER OATS CO A LEADING PETFOOD FIRM AND GATORADEMAKER FOR THE HUMAN ATHLETE STILL NOT EVERYONE IS CONVINCED SPORTS MEDICINE IS FOR THE DOGS THE VETS' GROUP HAS A LONG WAY TO GO TO QUALIFY AS A SPECIALTY SAYS MICHAEL GARVEY CHIEF OF MEDICINE AT THE ANIMAL MEDICAL CENTER NEW YORK BUT DR GARVEY CONCEDES NEED MAY GROW AS PEOPLE OVEREXERCISE PETS THE OWNER'S WEARING 320 SNEAKERS WITH PUMPUPS BUT THE DOG'S GOT ONLY HIS TENDER FOOTPADS HE SAYS THE FORD FOUNDATION AND HARVARD UNIVERSITY'S 1993 INNOVATIONS IN STATE AND LOCAL GOVERNMENT AWARDS HONOR AMONG OTHERS SEATTLE'S MULTILINGUAL VOICEMAIL SYSTEM THE PROJECT ENABLES HOMELESS PEOPLE TO GET IN TOUCH WITH POTENTIAL EMPLOYERS LANDLORDS AND HUMANSERVICE PROVIDERS THINK OF IT AS A GREAT BIG ANSWERING MACHINE SAYS PATRICIA BARRY WHO WITH RICH FELDMAN DEVELOPED THE PROGRAM THE 10 WINNERS RECEIVE 100000 GRANTS THE VOICEMAIL IDEA WAS BORN IN 1991 AFTER AN UNEMPLOYED FACTORY WORKER LIVING IN A SHELTER VOICED FRUSTRATION OVER MISSED JOB CALLS THERE WERE SOME BUGS AT FIRST THE PROGRAM ORIGINALLY USED RENTED PHONE MAILBOXES THAT WERE COSTLY AND EASY TO HACK NOW IT OWNS EQUIPMENT STILL SOME PROBLEMS EXIST THE MAILBOXES CAN BE REACHED FROM ANY PAY PHONE BUT HOMELESS PEOPLE CAN'T AFFORD MANY 25CENT CALLS PER DAY SO THE GROUP IS WORKING TOWARD GETTING AN 800NUMBER THE SEATTLE GROUP HELPS VOICEMAIL STARTUPS AND NOTES 20 REPLICATIONS SO FAR MORTAL KOMBAT THE CONTROVERSIAL VIDEO GAME FROM ACCLAIM ENTERTAINMENT WAS AMONG THE FIRST GAMES TO BENEFIT FROM RADIO SHACK'S EXPRESSORDER SYSTEM THE PLAN LETS CONSUMERS RESERVE COPIES OF NEW GAMES THAT ARE THEN SHIPPED TO HOMES CDROM PUBLICATIONS ARE NOW DEPOSITED FOR COPYRIGHT AND PUBLIC USE AT THE LIBRARY OF CONGRESS A NEW PACT EASED PUBLISHERS' SECURITY FEARS AND PAVED THE WAY FOR FILING DISKS ENTRIES INCLUDE AIDS COMPACT LIBRARY AND CDCALCULUS A FREE LUNCH SERVED BY THE BOSS IS IN STORE FOR WORKERS AT LAWSON PRODUCTS INC A MAINTENANCEPRODUCTS DISTRIBUTOR IN DES PLAINES ILL BERNARD KALISH CHAIRMAN AND PETER SMITH PRESIDENT WILL DISH UP THE MEAL ON EMPLOYEE APPRECIATION DAY OCT 7 WORKSTATIONSHARING IN CALIFORNIA MIXES COMMUTERS FROM DIFFERENT FIRMS CALIFORNIA OFFICIALS EXPLORE THE USE OF TELEBUSINESS CENTERS THAT OFFER SHARED WORKSTATIONS AS SUBURBAN OFFICES TO CUT DOWN ON COMMUTING TO JOBS AT SUCH EMPLOYERS AS TRW AND PACIFIC BELL SINCE 1991 SIX CENTERS HAVE OPENED AND 11 ARE SLATED BY YEAR END BUT FOUR PILOT PROGRAMS IN SOUTHERN CALIFORNIA RUN BY THE NONPROFIT INLAND EMPIRE ECONOMIC PARTNERSHIP MAY CLOSE WHEN FUNDS RUN OUT THIS YEAR PARTICIPATING FIRMS BALKED AT PAYING 500 A MONTH TO KEEP THE OFFICES IN OPERATION IN HARD TIMES BUSINESSES AREN'T WILLING TO TAKE ON NEW COSTS SAYS LINDA MORTON OF THE PARTNERSHIP BUT CORNELL UNIVERSITY'S FRANKLIN BECKER ADDS THAT THE PROGRAMS FLOUNDERED BECAUSE THEY STRESSED THE AIRQUALITY BENEFITS OF LESS DRIVING NOT IMPROVED WORK CONDITIONS NOW A 27 MILLION STATE TRANSPORTATIONDEPARTMENT PROJECT WHICH INCLUDES THE 11 PLANNED CENTERS STRESSES EFFICIENCY TO POTENTIAL EMPLOYERS OPERATORS BELIEVE WORKER PRODUCTIVITY WILL BE A BETTER SELLING POINT BRIEFS AMTRAK'S EAST COAST CORRIDOR RIDERS CAN NOW SHOP ON BOARD VIA A CATALOG FROM SKYMALL INC PHOENIX THIS NEW YORK CITY TRANSIT AUTHORITY PLACARD IN SUBWAY CARS TELLS IT AS IT IS YOU M IGHT N T BEL EVE THIS BUT WE REAL Y ARE W RKING ON THE P BLIC ADDR SS S Y T M 9309300049 930930 TECHNOLOGY CONNER PERIPHERALS SEES QUARTERLY LOSS EXCEEDING FORECASTS SAN JOSE CALIF CONNER PERIPHERALS INC SAID IT EXPECTS A THIRDQUARTER LOSS THAT WILL EXCEED ANALYSTS' ESTIMATES AND WILL TAKE A NUMBER OF MAJOR ACTIONS TO SCALE DOWN ITS OPERATIONS THE DISKDRIVE MAKER DIDN'T GIVE AN ESTIMATE FOR THE LOSS ANALYSTS' PERSHARE LOSS ESTIMATES RANGED BETWEEN TWO CENTS AND 95 CENTS ACCORDING TO ZACKS INVESTMENT RESEARCH INC A CONNER SPOKESWOMAN DECLINED TO SAY HOW MUCH MORE THAN 95 CENTS A SHARE THE COMPANY EXPECTS TO REPORT THE COMPANY ISSUED ITS PROJECTION AFTER THE CLOSE OF TRADING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CONNER CLOSED AT 10375 UNCHANGED CONNER BLAMED ITS POOR THIRDQUARTER SHOWING ON CONTINUING EXCESS CAPACITY IN THE DISKDRIVE BUSINESS WHICH HAS DRIVEN PRICE CUTTING DEEPER THAN ANTICIPATED IN A STATEMENT FINIS CONNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY PLANS TO SCALE DOWN ITS OPERATIONS IN LINE WITH OUR CURRENT OUTLOOK FOR NEW PRODUCTS HE SAID CONNER ALSO PLANS TO ELIMINATE ADDITIONAL COSTS ASSOCIATED WITH OLDER TECHNOLOGY CONNER SAID LAST MONTH THAT IT PLANNED TO LAY OFF ABOUT 140 EMPLOYEES AT ITS HEADQUARTERS AND DISCONTINUE AN OLDER LINE OF HARDDISK DRIVES THE COMPANY'S SPOKESWOMAN SAID SHE COULDN'T COMMENT ON WHAT ADDITIONAL STEPS WOULD BE TAKEN WE'RE GOING TO HAVE TO TAKE A LOOK AT NEWPRODUCT DEMAND AND SIZE OUR OPERATIONS ACCORDINGLY SHE SAID CONNER EMPLOYS ABOUT 10000 EMPLOYEES WORLDWIDE 9309300048 930930 MARKETING & MEDIA CAPITAL CITIES/ABC AGREES TO BACK EON IN INTERACTIVE VENTURE NEW YORK CAPITAL CITIES/ABC INC HOOKED UP WITH INTERACTIVE TELEVISION COMPANY EON CORP TO EXPLORE HOW VIEWERS MIGHT PLAY GAMES AND SHOP WHILE WATCHING ABC SHOWS THE BROADCASTING AND CABLE COMPANY SAID IT WOULD HELP FUND DEVELOPMENT OF ONAIR USES FOR RESTON VABASED EON'S REMOTECONTROL TECHNOLOGY BUT THE COMPANY DIDN'T SAY HOW MUCH THE DEVELOPMENT WOULD COST OR HOW MUCH IT WOULD FUND EON FORMERLY TV ANSWER IS ONE OF SEVERAL PLAYERS COMPETING FOR SPACE IN THE INTERACTIVETV FIELD THE EON SYSTEM IS EXPECTED TO BEGIN TEST RUNS IN MID1994 AND SHOW UP IN PROGRAMMING ABOUT SIX MONTHS LATER SAID RICH MILLER GROUP VICE PRESIDENT OF MARKETING IT WILL REQUIRE CONSUMERS TO PAY ABOUT 500 FOR A DEVICE THAT SITS ON A TV SET AND DECODES MESSAGES ALLOWING VIEWERS TO SEND MESSAGES BACK THROUGH THEIR SETS POSSIBLE APPLICATIONS INCLUDE LETTING VIEWERS PLAY ALONG WITH GAME SHOWS FOR A FEE RESPOND TO POLLS OR PURCHASE MERCHANDISE OR TICKETS TO ENTERTAINMENT EVENTS THE NETWORK WOULD GET A PERCENTAGE OF SALES APPLICATIONS ALSO ARE EXPECTED TO BE DEVELOPED FOR ESPN ESPN2 AND LIFETIME CABLE NETWORKS IN WHICH CAPITAL CITIES/ABC OWNS INTEREST GENERAL ELECTRIC CO'S NBC IS EXPLORING SEVERAL INTERACTIVE APPLICATIONS FOR COMPUTERS AND THROUGH CABLE AND HAS A STAKE IN INTERACTIVE NETWORK INC A REMOTEBASED SYSTEM BEING TESTED IN SAN FRANCISCO A CBS INC SPOKESMAN SAID THAT WHILE IT HAS LOOKED AT SEVERAL INTERACTIVE OPTIONS AND IS INTERESTED THE SYSTEMS AREN'T ADVANCED ENOUGH TO MAKE A COMMITMENT 9309300047 930930 TECHNOLOGY BELLS AND WHISTLES TURN BEEPERS INTO DATA RECEIVERS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL IN THE BEGINNING THERE WAS THE BEEPER THAT ANNOYING LITTLE GADGET WHOSE INCESSANT CHIRPING TOLD YOU TO CALL SOMEBODY BACK BUT NOW THE BEEPER IS BECOMING A DATA COMMUNICATOR A TINY LOWTECH COMPUTER AND AN ELECTRONIC MESSAGE PAD PAGING CARRIERS AND TWODECADEOLD BEEPER TECHNOLOGY ARE IN DANGER OF BEING OVERTAKEN BY THE UBIQUITOUS CELLULAR PHONE AND ONE DAY PERSONAL COMMUNICATION SERVICES WILL DELIVER DIGITAL DATA VOICE FAX AND EVEN VIDEO TO LIGHTWEIGHT POCKETPHONES SO PAGING CARRIERS ARE TURNING THE SIMPLE BEEPER INTO DATA COMMUNICATORS FOR ROVING CONSUMERS WHILE ALSO EXPANDING THEIR RADIOWAVE NETWORKS TO BEAM NEWS STOCK QUOTES AND OTHER INFORMATION TO PORTABLE COMPUTERS AND PALMSIZED PERSONAL DIGITAL ASSISTANTS PAGING IS A REAL SLEEPER SAYS PAUL CALLAHAN OF FORRESTER RESEARCH CAMBRIDGE MASS WHICH FOLLOWS THE COMPUTER AND COMMUNICATIONS INDUSTRIES PAGERS ARE SMALL THEY'RE CHEAP AND HAVE GREAT BATTERY LIFE UNLIKE CELLULAR PHONES TWO OF THE BIGGEST PAGING CARRIERS TRYING TO SURVIVE THE WIRELESS WARS ARE MOBILE TELECOMMUNICATION TECHNOLOGIES CORP OR MTEL OF JACKSON MISS AND BELLSOUTH CORP ATLANTA WHICH ALSO OPERATES SIZABLE CELLULAR AND WIRELESS DATA BUSINESSES MTEL WHICH SERVES 300000 SUBSCRIBERS ON ITS NATIONWIDE SKYTEL PAGING NETWORK BEGAN SHIPPING A SLEW OF NEWS AND FINANCIAL DATA TO ITS CUSTOMERS IN THE PAST YEAR NOW IT WILL SOON LET SENDERS USE ITS NETWORK TO REACH PORTABLE COMPUTERS WITH MESSAGES SEVERAL SENTENCES LONG AT RIVAL BELLSOUTH THE MOBILECOMM PAGING SERVICE IS ABOUT TO ADD LIMITED TEXT MESSAGES BEAMED ONE WAY TO LAPTOP OR NOTEBOOK COMPUTERS OR TO SPECIALLY EQUIPPED BEEPERS CUSTOMERS WILL BE ABLE TO SET A PECKING ORDER FOR THE PEOPLE FROM WHOM THEY WANT TO RECEIVE MESSAGES MOBILECOMM CALLS THIS PRIORITIZING BETTER YET THEY CAN CHOOSE TO HAVE THE SENDER PAY FOR THE PRIVILEGE OF SENDING A MESSAGE EITHER WAY IT'S 295 PER 100 CHARACTERS FOR IMMEDIATE DELIVERY AND UP TO 65 CENTS FOR A MESSAGE BEAMED OVERNIGHT EVEN THOSE ADVANCES THOUGH DON'T COME CLOSE TO THE NEWFANGLED FEATURES OF POCKETPHONES AND FUTURE PCS NETWORKS BEEPER NETWORKS TODAY ARE DECIDEDLY ONE WAY IN THEIR COMMUNICATIONS ABILITY IN ABOUT 20 YEARS THE BEEPER BUSINESS HAS GROWN TO 15 MILLION CUSTOMERS AND 2 BILLION IN REVENUE AND MORE THAN 75 OF THE BUSINESS IS STRICTLY SMALLTIME LOCAL SERVICE IN HALF THAT TIME CELLULAR PHONES HAVE SPREAD TO 12 MILLION CUSTOMERS AND REVENUE OF 11 BILLION AND THEY ARE GROWING AT MORE THAN 30 A YEAR MTEL HOPES TO STAY COMPETITIVE BY CASHING IN ON EVERLIGHTER MOBILE COMPUTERS USERS WILL BE ABLE TO RECEIVE SHORT MESSAGES OVER THE SKYTEL PAGING NETWORK BY PLUGGING A SOCALLED PCMCIA CARD A SIMPLE CREDITCARDSIZED PAGER/MODEM INTO THEIR PORTABLE COMPUTERS TO MAKE THINGS EVEN MORE ATTRACTIVE SKYTEL'S PRESIDENT DAVID GARRISON SAYS THE COMPANY WILL RESTRUCTURE ITS PAGING RATES TO LET PEOPLE WHO TRAVEL TO ONLY A FEW CITIES PAY A LOWER PRICE 39 A MONTH THAN SKYTEL'S NATIONWIDE SERVICE CHARGE 69 WHICH REMAINS ALL OF THIS WILL MEAN A LOT TO THE 40 MILLION PEOPLE WHO DON'T WORK AT THEIR DESKS HE SAYS IN THE NOTTOODISTANT FUTURE PAGING SERVICES IN THE US WILL ALSO BE TWO WAY MTEL'S MTEL TECHNOLOGIES SUBSIDIARY IS BUILDING A 150 MILLION NETWORK SCHEDULED TO START OPERATING IN 1995 THAT WILL LET SUBSCRIBERS BEEP A SENDER BACK TO ACKNOWLEDGE A MESSAGE OR RESPOND WITH A SHORT MEMO STEPHEN E PAZIAN PRESIDENT OF MTEL RIVAL MOBILECOMM SAYS SNAZZY PAGING FEATURES ARE CRITICAL TO ATTRACT THE INDUSTRY'S SALES TARGET ANYONE WHO WALKS DRIVES ROLLERBLADES OR FLIES WE FIGURE THAT MANY OF THE 15 MILLION SUBSCRIBERS WHO CURRENTLY GET PAGING SERVICES WILL WANT A SERVICE THAT LETS THEM CONTROL THE MESSAGE FLOW HE SAYS EVEN WITH THE NEW POWERS BEEPERS ARE CONVENIENT AND SIMPLE TO OPERATE TO REACH A PAGER YOU DIAL A SINGLE PHONE NUMBER AND LET A COMPUTERIZED VOICE TELL YOU HOW TO PUNCH IN THE REST OF THE CODES THE PAGING MESSAGE ITSELF WORMS ITS WAY THROUGH THE LOCAL PHONE NETWORK TO A SERVICE'S COMPUTER CENTER WHICH THEN RELAYS THE SIGNAL VIA SATELLITE TO LOCAL RADIO TRANSMITTERS THAT BROADCAST THE SIGNAL UNTIL THE PAGER PICKS UP THE MESSAGE IN MANY AREAS OF THE WORLD THE DUMB LITTLE BOX THAT SLIPS OVER A BELT IS THE ONLY RELIABLE MEANS OF COMMUNICATIONS IN PHONESTARVED CHINA PEOPLE USING PAGERS WORK OUT NUMBER CODES WITH FAMILY MEMBERS WHO CAN'T GET TO A PHONE IF SAY THE PAGER BEEPS AND 22 SUDDENLY APPEARS ON THE LITTLE SCREEN IT MAY MEAN DINNER'S ON OR TO AVOID TIANANMEN SQUARE IN BRAZIL ANXIOUS INFLATIONCRAZED SUBSCRIBERS USE THEIR PAGERS TO GET UPDATES ON THEIR BANK ACCOUNTS THIRTY DAYS AFTER SERVICE BEGAN THEY USED THE NETWORK SO MUCH THAT THE SYSTEM RAN OUT OF CAPACITY AND HAD TO BE EXPANDED 9309300046 930930 WEDNESDAY'S MARKETS OIL PRICE RISE DAMPS BONDS STOCKS ARE OFF BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES DROPPED ON RISING OIL PRICES AND FEARS OF STRONGERTHANEXPECTED ECONOMIC GROWTH STOCKS DRIFTED MOSTLY LOWER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 028 POINT TO 356630 STANDARD & POOR'S 500STOCK INDEX LOST 142 TO 46011 AND THE NASDAQ COMPOSITE INDEX FELL 049 TO 76317 THE BOND MARKET WAS CONFRONTED EARLY WITH SIGNS OF A SLIGHTLY BETTER ECONOMY WHEN THE COMMERCE DEPARTMENT RAISED ITS ESTIMATE FOR GROWTH OF THE GROSS DOMESTIC PRODUCT IN THE SECOND QUARTER TO 19 FROM 18 BOND PRICES CAME UNDER FURTHER PRESSURE WHEN CRUDE OIL FUTURES PRICES BROKE THROUGH AN IMPORTANT RESISTANCE LEVEL OF 1850 A BARREL THE MOVE IN OIL PRICES WAS SPARKED BY NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES REACHED AGREEMENT ON PRODUCTION QUOTAS OIL FOR NOVEMBER DELIVERY CLOSED AT 1867 A BARREL UP 71 CENTS THE BOND MARKET'S WEAKNESS KEPT STOCKS TRADING IN A VERY NARROW RANGE AFTER THE GDP FIGURES WERE REVISED BONDS CAME UNDER PRESSURE AND THAT CREATED A LITTLE PRESSURE ON STOCKS SAID NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 033 TO 11147 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2773 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1006 ISSUES FELL AND 998 ROSE THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16136 MARKS AND 10505 YEN COMPARED WITH 16120 MARKS AND 10490 YEN TUESDAY 9309300045 930930 BMW TOP WAGE TO BE 16 SPARTANBURG SC WORKERS AT BAYERISCHE MOTOREN WERKE AG'S FIRST US ASSEMBLY PLANT WILL EARN A TOP WAGE OF 16 AN HOUR BELOW THE UNITED AUTO WORKERS UNION'S TOP RATE OF 1750 AN HOUR BMW OFFICIALS SEEM TO BE BANKING THAT ITS WAGE AND BENEFITS PACKAGE WILL BE STRONG ENOUGH TO KEEP THE UNITED AUTO WORKERS UNION FROM ORGANIZING ITS WORK FORCE BMW PLANS TO HIRE MORE THAN 1200 WORKERS BY 1995 PRODUCTION AT THE NEW 400 MILLION SPARTANBURG ASSEMBLY PLANT WILL BEGIN NEXT FALL BASE WAGES WILL START AT 12 AN HOUR BUT WILL INCREASE 50 CENTS EACH HOUR FOR EVERY THREE MONTHS REACHING A MATURE RATE OF 16 AN HOUR WITHIN 24 MONTHS BMW SAID A COMPREHENSIVE HEALTHCARE PLAN WILL BE MADE AVAILABLE TO BMW WORKERS AND THEIR DEPENDENTS AT NO DIRECT COST OR PAYROLL DEDUCTION WORKERS REPRESENTED BY THE UAW ALSO HAVE NO COPAY PROVISIONS FOR MEDICAL COVERAGE 9309300044 930930 REVIEW & OUTLOOK EDITORIAL REAL HOUSE REFORM ON HIS FIRST DAY IN OFFICE IN 1987 REP JIM INHOFE ASKED A FELLOW OKLAHOMA MEMBER HOW HE COULD BE SO LIBERAL AND KEEP GETTING ELECTED IN A CONSERVATIVE STATE A THIRD CONGRESSMAN INTERRUPTED IT'S EASY VOTE LIBERAL PRESS RELEASE CONSERVATIVE REP INHOFE TOOK A BIG STEP TOWARD ENDING SUCH HYPOCRISY TUESDAY WHEN CONGRESS VOTED 384 TO 40 FOR HIS PROPOSAL TO END THE SECRECY OF DISCHARGE PETITIONS CONSTITUENTS WILL NOW KNOW WHO'S SIGNED UP FOR THE PROCEDURES NECESSARY TO DISCHARGE A BILL FROM COMMITTEE AND FORCE A VOTE MEMBERS WILL NO LONGER BE ABLE TO POSTURE ONE WAY AND ACT ANOTHER ON BILLS POPULAR WITH THE PUBLIC BUT UNPOPULAR WITH FELLOW LEGISLATORS REP INHOFE'S OVERWHELMING MAJORITY AFTER THE DIFFICULTY HE HAD SIGNING UP 218 MEMBERS TO DISCHARGE HIS OWN PROPOSAL IS ITSELF TESTIMONY TO THE DIFFERENCE BETWEEN SMOKEFILLED ROOMS AND THE LIGHT OF DAY AT LEAST THE 40 OPPONENTS WHOSE NAMES APPEAR BELOW WERE WILLING TO STAND UP AND BE COUNTED IN FAVOR OF SECRECY I THINK THE WHOLE THING STINKS DECLARED REP JOHN DINGELL MUCHFEARED CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITEE GENERAL DINGELL WARNED THAT REFORM MEANS YOU LAY THE BASIS FOR THE ENTIRE BYPASSING OF THE COMMITTEE SYSTEM HOUSE RULES COMMITTEE CHAIRMAN JOE MOAKLEY RAILED AGAINST AN AROUSED AND ENRAGED PUBLIC THAT IS VIRTUALLY IMPOSSIBLE TO ENGAGE IN REASONABLE AND THOUGHTFUL DEBATE WATCHING JIM WRIGHT'S DEPARTURE THE KEATING FIVE SCANDALS THE HOUSE BANK AND POST OFFICE MUCH OF THE PUBLIC DOUBTS THAT SUCH DEBATE IS WHAT GOES ON IN CAPITOL CORRIDORS INDEED IT THINKS IT HAS SOME RIGHT TO BE AROUSED AND ENRAGED AND WHEN CONGRESS ROUTINELY EXEMPTS ITSELF FROM RULES IT IMPOSES ON THE REST OF SOCIETY MUCH OF THE PUBLIC THINKS THAT SOMETHING NEEDS TO BE BYPASSED SO IT'S ENTIRELY APPROPRIATE THAT THIS MAJOR REFORM OF HOUSE RULES BE FORCED ON CONGRESS BY POPULAR OUTCRY THE IDEOLOGICAL BENT OF THIS OUTCRY IS ALSO NOTEWORTHY AS THE 40 HOLDOUTS SHOW THE DRIVE TO MAKE MEMBERS ACCOUNTABLE WAS CERTAINLY NOT LED BY THE LIBERALS WHO HAVE LONG THOUGHT THEMSELVES THE FONT OF REFORM WE ON THIS PAGE WERE GLAD TO HAVE PLAYED OUR PART AND ARE EQUALLY GLAD TO CREDIT RUSH LIMBAUGH'S BROADCASTS AND THE EFFORTS OF ROSS PEROT WHOSE SUPPORTERS HELD ALLNIGHT VIGILS IN FRONT OF CONGRESSIONAL OFFICES WE WOULD ALSO NOTE THOUGH THE LACK OF INTEREST FROM A PRESS THAT HOLDS ITSELF DEVOTED TO THE PUBLIC'S RIGHT TO KNOW FOR A MONTH AFTER REP INHOFE'S AUGUST 4 ANNOUNCEMENT THAT HE WOULD PUBLICIZE THE NAMES OF MEMBERS WHO REFUSED TO END SECRET DISCHARGE PETITIONS NO NETWORK OR OTHER MAJOR NEWSPAPER MENTIONED HIS CRUSADE ONLY AFTER PUBLIC AGITATION FORCED A HOUSE MAJORITY TO BACK MR INHOFE DID OUR COLLEAGUES AT THE NEW YORK TIMES AND THE WASHINGTON POST ADDRESS THE ISSUE THE POST NOTED THAT IN A DEMOCRACY WHERE ELECTED OFFICIALS HAVE AN OBLIGATION TO BE CANDID AND ACCOUNTABLE THERE IS NO REASONABLE ARGUMENT AGAINST THIS CHANGE WE'RE GRATEFUL FOR THE SUPPORT BUT WONDER IF THEY'D HAVE JOINED THE BATTLE BEFORE IT WAS WON HAD IT BEEN LED BY SAY RALPH NADER IT'S ALSO INTRIGUING THAT SECRECY WAS SUPPORTED BY BELTWAY ACADEMICS THOMAS MANN AND NORMAN ORNSTEIN COMPLAINED WE HAD CREATED A WILDLY INACCURATE PORTRAYAL OF CONGRESS AS A CLOSED SECRETIVE INSTITUTION DOMINATED BY COMMITTEES AND PARTY BARONS AND UNRESPONSIVE TO POPULAR SENTIMENT WE REFER THEM TO THE RESPECTED MEMBERS NOW DEPARTING IN DISGUST REP TIM PENNY THE RETIRING MINNESOTA DEMOCRAT SAYS IT TOOK HIM ONLY SIX MONTHS IN CONGRESS TO REALIZE THIS PLACE DOESN'T OPERATE ON THE LEVEL IN PARTICULAR HE SAYS MANY DEMOCRATS ARE THEMSELVES UPSET THAT HOUSE LEADERS RIG THE RULES TO MAKE SURE THEY AREN'T CHALLENGED ON THE FLOOR TO THE MEMBERS THE ACADEMICS AND THE PRESS WE SAY THIS WELCOME TO THE AGE OF INSTANT COMMUNICATIONS WE DOUBT THAT THE DISCHARGE PETITION REFORM WILL BE THE LAST REFORM IN PARTICULAR SOME 75 OF THE AMERICAN PEOPLE SUPPORT LIMITATIONS ON CONGRESSIONAL TERMS LAST WEEK AFTER IT BECAME CLEAR THAT DISCHARGE PETITIONS WOULD BE MADE PUBLIC FIVE MEMBERS SIGNED THE PETITION TO DISCHARGE TERM LIMIT LEGISLATION WHILE DEFENDERS OF CONGRESSIONAL SECRECY PREDICT UNTOWARD AND CHAOTIC RESULTS WE TRUST THE PUBLIC A LOT MORE THAN WE TRUST THE MEMBERS IN 1867 THE BRITISH PARLIAMENT PASSED THE SECOND REFORM ACT SPONSORED NOT SO INCIDENTALLY BY DISRAELI'S CONSERVATIVES IT GAVE THE VOTE TO THE LIKES OF RENTPAYERS AND UPON PASSAGE THE VISCOUNT SHERBROOKE ADVISED FELLOW PARLIAMENTARIANS TO PREVAIL ON OUR FUTURE MASTERS TO LEARN THEIR LETTERS IN THE POPULARIZED VERSION THIS BECAME WE MUST EDUCATE OUR MASTERS IF THE JOHN DINGELLS AND JOE MOAKLEYS ARE REALLY WORRIED NOT ABOUT THEIR OWN PREROGATIVES BUT THE FUTURE OF THE REPUBLIC THEY WOULD BE WELLADVISED TO ADOPT THE CONSTRUCTIVE ATTITUDE AFFIRMED BY VISCOUNT SHERBROOKE 9309300042 930930 SMALL STOCK FOCUS STOCKS RALLY BUT TECHNOLOGY SECTOR FALTERS ON DROP IN SEMICONDUCTOR ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE RALLY AMONG SMALLCOMPANY STOCKS CONTINUED NO THANKS TO FLAGGING TECHNOLOGY ISSUES LEADING SEMICONDUCTOR STOCKS TOOK A HIT DRAGGING THE REST OF THE TECH SECTOR DOWN WITH THEM APPLIED MATERIALS AND MICRON TECHNOLOGY NYSE EACH LOST MORE THAN 4 POINTS THE RUSSELL 2000 INDEX A MEASURE OF SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES FINISHED AT A FOURTH STRAIGHT RECORD RISING 082 POINT OR 033 TO 25151 BUT THE NASDAQ COMPOSITE INDEX WHICH IS WEIGHTED HEAVILY WITH THE STARS OF THE TECH WORLD WAS UNABLE TO CONTINUE A FOURSESSION RECORDSETTING STREAK THE BAROMETER DROPPED 049 POINT OR 006 TO END AT 76317 WEAKNESS IN THE SEMICONDUCTOR GROUP SPILLED OVER A BIT SAID JOE LOFTUS SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROS THE SPILLOVER SCARED AWAY SOME BUYERS THE POSSIBILITY OF MAJOR ADVANCES ALSO WAS TEMPERED BY LOSSES IN THE BOND MARKET THE TREASURY'S 30YEAR BOND FELL NEARLY 7/8 POINT DRIVING ITS YIELD UP TO JUST BELOW THE MUCHWATCHED 6 MARK HOWEVER INTERESTRATE SENSITIVE STOCKS DID SURPRISINGLY WELL LOGGING MANY OF THE DAY'S GAINS PATRICK DAVIS MANAGER OF OTC TRADING AT SALOMON BROS SAID TECH STOCKS FELL IN PART BECAUSE OF NORMAL PROFITTAKING AFTER A STRONG RUN HE SAID WINDOWDRESSING AHEAD OF THE LAST DAY OF THE QUARTER TODAY ALSO WAS A FACTOR WINDOWDRESSING REFERS TO THE DUMPING OF LAGGARDS IN PORTFOLIOS REPLACING THEM WITH BETTERPERFORMING STOCKS THAT IS TYPICAL AROUND THE END OF A QUARTER MR LOFTUS ADDED THAT INVESTORS ARE STARTING TO GET ANTSY ABOUT THIRDQUARTER CORPORATE EARNINGS REPORTS WHICH WILL BEGIN TO FLOOD THE MARKETS IN THE NEXT FEW WEEKS HE SAID THE FEELING IS THERE WILL BE A FEW EARNINGS BOMBSHELLS BOTH TO THE UPSIDE AND THE DOWNSIDE WHICH COULD KEEP THE MARKET CHOPPY OVER THE NEXT FEW WEEKS GAINERS ON NASDAQ OUTRAN LOSERS 1526 TO 1342 NASDAQ NATIONAL MARKET VOLUME TOTALED 2851 MILLION SHARES UP FROM 2367 MILLION SHARES ON TUESDAY SMALLER TECHNOLOGY STOCKS LOST GROUND EQUINOX SYSTEMS OF FORT LAUDERDALE FLA FELL 1 3/4 TO 5 BOCA RESEARCH OF BOCA RATON FLA DOWN 1 TO 7 3/4 AND BOLT BERANEK & NEWMAN NYSE OF CAMBRIDGE MASS DROPPED 1/2 TO 10 BUT TRINZIC SWAM AGAINST THE TIDE RISING 3/4 TO 4 7/8 THE PALO ALTO CALIF SOFTWARE FIRM SAID THAT AS A NEW MEMBER OF LOTUS DEVELOPMENT'S LOTUS NOTES PROFESSIONAL DEVELOPERS AND BUSINESS PARTNERS PROGRAMS IT IS INTEGRATING ITS INFOPUMP MIDDLEWARE PRODUCT WITH LOTUS NOTES NEW ISSUE ULTRATECH STEPPER SOARED ABOVE ITS DEBUT PRICE OF 14 TO CLOSE AT 18 3/4 THE MAKER OF PHOTOLITHOGRAPHY EQUIPMENT EXPECTS TO USE PROCEEDS TO REPAY DEBT AND FOR CAPITAL EXPENDITURES WORKING CAPITAL AND GENERAL CORPORATE PURPOSES NEW ENGLAND THRIFTS MOVED HIGHER ON NEWS THAT BRAINTREE SAVINGS HAS CONDUCTED PRELIMINARY MERGER DISCUSSIONS WITH AN UNIDENTIFIED BANK BRAINTREE JUMPED 4 OR 32 TO 16 1/2 ALSO GIVING A BOOST TO THE GROUP WAS BIG BOARDTRADED SHAWMUT NATIONAL'S MAPPING OUT OF ITS EXPANSION PLANS GATEWAY FINANCIAL BASED IN NORWALK CONN WAS UP 1/2 TO 9 3/4 AND QUINCY SAVINGS BANK ROSE 1/4 TO 13 5/8 ELSEWHERE AMONG INTERESTRATESENSITIVE STOCKS AAMES FINANCIAL OF LOS ANGELES SAGGED 2 5/8 TO 8 3/8 ON A DISAPPOINTING EARNINGS OUTLOOK THE COMPANY SAID IT EXPECTS EARNINGS FOR ITS FISCAL FIRST QUARTER TO BE BELOW ANALYSTS' EXPECTATIONS OF 23 CENTS A SHARE AAMES ESTIMATES IT EARNED BETWEEN 16 AND 18 CENTS A SHARE FOR THE PERIOD BASED ON 29 MORE SHARES OUTSTANDING COMPARED WITH 28 CENTS A YEAR EARLIER IN OTHER CORPORATE DEVELOPMENTS SOUND ADVICE BASED IN DANIA FLA GAINED 13/16 TO 6 9/16 THE OPERATOR OF A CHAIN OF RETAIL STORES SAID IT EARNED THREE CENTS A SHARE IN ITS FISCAL FOURTH QUARTER IT HAD A LOSS OF 47 CENTS A SHARE A YEAR EARLIER FOR THE SECOND STRAIGHT DAY SPECTRUM INFORMATION TECHNOLOGIES WAS THE MOST ACTIVE ISSUE WITH VOLUME OF 15 MILLION SHARES ABOUT 10 TIMES ITS AVERAGE DAILY LEVEL THE MANHASSET NY COMPANY WHICH EDGED UP 5/8 TO 6 5/8 REPORTEDLY ENTERED INTO A MARKETING AND TECHNOLOGY PARTNERSHIP WITH NCR CORP A UNIT OF AMERICAN TELEPHONE & TELEGRAPH NYSE THE COMPANY ON TUESDAY REPORTED THAT IT WAS AWARDED A PATENT FOR TECHNOLOGY USED IN MODEM COMMUNICATIONS EKCO GROUP NYSE A NASHUA NH MAKER OF HOUSEWARE AND HARDWARE PRODUCTS SAID IT EXPECTS THIRDQUARTER EARNINGS PER SHARE WILL BE ABOUT 20 HIGHER THAN THE 15 CENTS IT EARNED A YEAR AGO BUT EKCO FELL 2 TO 8 1/2 AS THE COMPANY SAID ITS ESTIMATE IS BELOW THAT OF ANALYSTS MIAMIBASED SPEC'S MUSIC INC GAINED 1/2 TO 5 1/4 AFTER IT REPORTED THAT ITS FISCAL FOURTHQUARTER NET INCOME ROSE TO 11 CENTS A SHARE IT HAD A LOSS OF 2 CENTS A SHARE A YEAR EARLIER 9309300041 930930 WHAT'S NEWS WORLDWIDE YELTSIN SET A NEW DEADLINE FOR RUSSIA'S HARDLINE LAWMAKERS TO SURRENDER THE INCREASINGLY ISOLATED LEGISLATORS WERE GIVEN FIVE DAYS TO GIVE UP THEIR GUNS AND LEAVE THE BARRICADED PARLIAMENT BUILDING OR RISK GRAVE CONSEQUENCES PRESIDENTIAL AIDES SAID YELTSIN'S STRATEGY IS TO WAIT FOR THE MAJORITY OF DEPUTIES TO ABANDON THEIR VIGIL VOLUNTARILY LATE YESTERDAY THE BESIEGED LAWMAKERS REPORTEDLY SAID THEY WERE WILLING TO NEGOTIATE MARKING A POSSIBLE SOFTENING OF THEIR POSITION MEANWHILE RESISTANCE TO YELTSIN WAS MOUNTING AMONG REGIONAL LEADERS RUSSIA'S FOREIGN MINISTER MET WITH CLINTON IN WASHINGTON ASSURING HIM THAT THE STANDOFF IN MOSCOW WOULD BE RESOLVED WITHOUT USING FORCE A STRONG EARTHQUAKE STRUCK INDIA SOUTHEAST OF BOMBAY THERE WERE CONFLICTING REPORTS ON DEATHS BUT HUNDREDS WERE BELIEVED TO BE BURIED IN THEIR COLLAPSED HOMES THE QUAKE MEASURING 64 ON THE RICHTER SCALE WAS THE STRONGEST IN INDIA SINCE 1967 WHEN A 65LEVEL QUAKE LEFT 170 PEOPLE DEAD BOSNIA'S PARLIAMENT SPURNED AN INTERNATIONAL PEACE PLAN VOTING OVERWHELMINGLY TO REJECT IT UNLESS SERBS RETURN TERRITORY CAPTURED BY FORCE IN WASHINGTON PRESIDENT CLINTON EXPRESSED CONCERN ABOUT THE MUSLIMLED PARLIAMENT'S DECISION SAYING I THINK THAT THE PRICE OF PASSING UP THIS PEACE MAY BE VERY HIGH CLINTON DEFENDED COMMERCE SECRETARY BROWN AGAINST ACCUSATIONS THAT HE MAY HAVE SOUGHT 700000 FROM VIETNAM TO HELP LIFT THE TRADE EMBARGO AGAINST HANOI ONE HOUSE REPUBLICAN MAY DEMAND THE APPOINTMENT OF A SPECIAL PROSECUTOR TO LOOK INTO THE ALLEGATIONS WHICH WERE MADE BY A VIETNAMESE BUSINESSMAN TWO PROSECUTORS HAVE RECEIVED THREATS IN THE WORLD TRADE CENTER BOMBING CASE AND HAVE BEEN MOVED WITH THEIR FAMILIES TO UNDISCLOSED LOCATIONS THE ACTION IS AN UNUSUAL PRECAUTION THAT HIGHLIGHTS THE INTENSE SECURITY SURROUNDING THE FEDERAL TRIAL IN NEW YORK OPENING STATEMENTS ARE TO BEGIN NEXT WEEK LIBYA DROPPED ITS OBJECTIONS TO HAVING TWO OF ITS CITIZENS TRIED IN SCOTLAND ON CHARGES OF BLOWING UP PAN AM FLIGHT 103 IN 1988 LIBYAN AUTHORITIES HOWEVER LEFT THE FINAL DECISION UP TO THE TWO MEN AND THEIR LAWYER SAID NO DEAL HAD BEEN WORKED OUT FOR THEIR SURRENDER BRITAIN PRESSED THE UN TO PROCEED WITH NEW SANCTIONS AGAINST LIBYA THE HOUSE REJECTED A SENATEBACKED MORATORIUM THAT WOULD HAVE BLOCKED THE CLINTON ADMINISTRATION FROM MORE THAN DOUBLING THE GRAZING FEES CHARGED FOR CATTLE AND SHEEP ON FEDERAL LANDS THE ACTION CAME AS CONGRESS NEARED APPROVAL OF A 25 BILLION AID PACKAGE FOR RUSSIA AND OTHER FORMER SOVIET REPUBLICS ISRAELI SECURITY FORCES CAPTURED THEIR MOST WANTED PALESTINIAN FUGITIVE A COMMANDER IN A MILITARY WING OF YASSER ARAFAT'S FATAH FACTION OF THE PLO PALESTINIAN LEADERS PROTESTED THE ARREST OF AHMED AWAD IKMEIL AND SEVERAL OTHER FATAH FUGITIVES IN THE WEST BANK SAYING THE ACTION VIOLATED THE SPIRIT OF AN ISRAELIPLO PEACE ACCORD A 263 BILLION DEFENSE BUDGET WON APPROVAL IN A 268162 HOUSE VOTE THE MEASURE CODIFIES A RESTRICTIVE POLICY ON HOMOSEXUALS IN THE MILITARY AND ASKS CLINTON TO REPORT BY OCT 15 ON US POLICY GOALS IN SOMALIA THE APPROVED SPENDING PACKAGE FOR NEXT YEAR IS 571 MILLION LESS THAN CLINTON SOUGHT AND 12 BILLION LESS THAN THIS YEAR YOUNG PEOPLE WHO ARE OVERWEIGHT FACE SOCIAL AND ECONOMIC PROBLEMS AS THEY GROW OLDER A STUDY FOUND RESEARCHERS BLAMED US SOCIETY'S DISCRIMINATION AGAINST OBESE PEOPLE FOR THE PROBLEMS THEY ENCOUNTER SAYING OVERWEIGHT WOMEN IN PARTICULAR ARE AFFECTED THE HOUSE APPROVED A FOREIGN AID FUNDING BILL CONTAINING CURBS ON US ECONOMIC AID TO NICARAGUA THE BILL WHICH IS EXPECTED TO PASS THE SENATE LINKS RELEASE OF THE AID TO A FULL INVESTIGATION OF A MAY BLAST IN MANAGUA THAT UNCOVERED WEAPONS AND DOCUMENTS SUGGESTING THE EXISTENCE OF A TERRORIST RING AN APPEALS COURT HAS GRANTED A REQUEST FROM FORMER PRESIDENT REAGAN AND IS GIVING IRANCONTRA FIGURES ADDITIONAL MONTHS TO RESPOND TO PROSECUTORS' CRITICAL STILLSECRET REPORT ON THE ARMSFORHOSTAGES AFFAIR PEOPLE CLOSE TO THE CASE SAID REAGAN GEORGE BUSH OLIVER NORTH AND AIDES TO BOTH PRESIDENTS HAD BEEN FACING A MONDAY DEADLINE GERMANY SOLICITED THIRD WORLD SUPPORT IN ITS BID FOR A PERMANENT SEAT ON THE SECURITY COUNCIL IN A SPEECH AT THE UN THE GERMAN FOREIGN MINISTER AWARE THAT MEMBERS' OBJECTIONS CENTER ON GERMAN CONSTITUTIONAL BARRIERS TO SEND COMBAT TROOPS ABROAD FOCUSED INSTEAD ON GERMANY'S ECONOMIC CONTRIBUTIONS TO UN ACTIVITIES 9309300040 930930 ABREAST OF THE MARKET STOCKS FALL A BIT DESPITE RALLY IN OILS SPARKED BY OPEC MOVE BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A RALLY IN CRUDE OIL PRICES IGNITED ENERGYRELATED STOCKS BUT ELSEWHERE EQUITIES FOLLOWED BONDS LOWER THE DOW JONES INDUSTRIAL AVERAGE EKED OUT A GAIN OF 028 OR 001 TO 356630 BUOYED BY ITS OILRELATED COMPONENTS BROADER AVERAGES SLID AND THE NASDAQ MARKET'S STRING OF RECORD CLOSES ENDED AT FOUR CRUDE OIL FUTURES SURGED AS MINISTERS FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONCLUDED TALKS IN GENEVA WITH AN AGREEMENT TO RESTRAIN OIL PRODUCTION OVER THE NEXT SIX MONTHS OIL FOR NOVEMBER DELIVERY CLOSED AT 1867 A BARREL UP 71 CENTS FROM TUESDAY THAT SENT A BROAD RANGE OF OIL STOCKS SOARING CHEVRON WHICH GAINED 2 1/2 TO 97 TEXACO WHICH ROSE 1 1/2 TO 67 1/2 AND EXXON UP 1 TO 66 5/8 TOGETHER ADDED MORE THAN 10 POINTS TO THE INDUSTRIAL AVERAGE BUT BOND PRICES TUMBLED IN PART ON CONCERN THAT THE OIL PRICE SPIKE MEANS HIGHER INFLATION THE 30YEAR TREASURY DROPPED ABOUT 7/8 POINT LIFTING ITS YIELD TO 599 STOCKS MEANWHILE HAVE MOVED IN TANDEM WITH BONDS FOR MONTHS AS INVESTORS BANK ON LOW INTEREST RATES TO SUPPORT EQUITY PRICES LOW YIELDS ON INTERESTBEARING INVESTMENTS BOOST THE DEMAND FOR STOCKS BY INCREASING THEIR RELATIVE ATTRACTIVENESS LOW RATES ALSO HELP STRENGTHEN THE ECONOMY AND CORPORATE PROFITS THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 142 OR 031 TO 46011 AND THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX FELL 056 OR 022 TO 25560 THE NASDAQ COMPOSITE INDEX DECLINED 049 OR 006 TO 76317 THE FEVERISH RALLY IN TECHNOLOGY STOCKS ESPECIALLY SEMICONDUCTOR ISSUES FIZZLED INVESTORS SEARCHING FOR EARNINGS POWER IN THE SLOWGROWTH ECONOMIC ENVIRONMENT HAD CHASED TECHNOLOGY ISSUES FOR A WEEK HELPING FUEL THE NASDAQ MARKET'S GAINS BUT A STORY IN THIS NEWSPAPER YESTERDAY ABOUT INSIDER SELLING IN SECONDTIER SEMICONDUCTOR STOCKS SENT SOME INVESTORS RUSHING TO THE EXITS MOTOROLA FELL 2 7/8 TO 101 5/8 IT WAS AT 95 A WEEK EARLIER TEXAS INSTRUMENTS LOST 2 3/4 TO 76 5/8 NASDAQLISTED APPLIED MATERIALS FELL 5 5/8 TO 72 7/8 JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO MEANWHILE PLAYED DOWN THE SIGNIFICANCE OF THE OIL PRICE RISE STOCKS SHOULDN'T BE AFFECTED HE SAID UNLESS THE GAINS MOUNT OVER COMING WEEKS AND OPEC PRODUCERS ABIDE BY THE NEW OUTPUT LIMITS HOLDING TO SUCH LIMITS THOUGH HAS BEEN DIFFICULT IN THE PAST PARAMOUNT COMMUNICATIONS JUMPED 1 5/8 TO 79 3/8 AFTER BLOCKBUSTER ENTERTAINMENT AGREED TO INVEST 600 MILLION IN VIACOM FINANCING THAT COMPANY NEEDS IN ITS EFFORT TO ACQUIRE PARAMOUNT VIACOM HAS AGREED TO BUY THE MEDIA COMPANY BUT ITS OFFER HAS BEEN TOPPED BY QVC NETWORK SHARES OF BLOCKBUSTER EASED 1/8 TO 29 1/8 VIACOM FELL 1 1/2 TO 59 1/2 IN AMERICAN STOCK EXCHANGE TRADING QVC ADDED 1/8 TO 59 5/8 ON NASDAQ NEWS OF AN OIL DISCOVERY OFFSHORE LOUISIANA ADDED TO THE BUYING IN SEVERAL ENERGY STOCKS ANADARKO PETROLEUM ROCKETED 5 1/8 TO 47 3/8 PHILLIPS PETROLEUM GAINED 1 3/4 TO 33 7/8 AND AMOCO 2 3/8 TO 57 3/4 THE THREE ARE PARTNERS IN THE PROJECT WHICH COULD BE THE SECOND BIGGEST FIND IN THE GULF OF MEXICO IN A YEAR NATIONAL MEDICAL ENTERPRISES JUMPED 2 TO 10 AFTER THE HOSPITAL OPERATOR SAID IT AGREED IN PRINCIPLE TO SETTLE TWO MAJOR LAWSUITS REGARDING DISPUTED CLAIMS FOR PSYCHIATRIC CARE IT WOULD PAY AS MUCH AS 125 MILLION UNDER THE AGREEMENT CML GROUP LOST 2 7/8 TO 28 EVEN THOUGH THE APPAREL AND FITNESS EQUIPMENT MAKER REPORTED EARNINGS OF NINE CENTS A SHARE FOR THE FOURTH QUARTER ENDED JULY 31 UP FROM SIX CENTS A YEAR AGO EG&G CONTINUED TO SLIDE LOSING 1 TO 16 1/8 IT FELL 2 1/4 TUESDAY AFTER THE MAKER OF SCIENTIFIC INSTRUMENTS PREDICTED A 40 DROP IN ITS THIRDQUARTER EARNINGS COMPUSA LOST 2 1/2 TO 27 1/8 DESPITE ITS REPORT OF IMPROVED SALES THE COMPUTER PRODUCTS RETAILER SAID SAMESTORE SALES THOSE FROM LOCATIONS OPEN AT LEAST A YEAR ROSE 17 IN ITS FIRST QUARTER MICRON TECHNOLOGY WHICH MADE CAUTIONARY COMMENTS IN ITS EARNINGS REPORT TUESDAY TUMBLED 4 3/8 TO 55 3/8 SHARES OF THE CHIP MAKER SKIDDED 3 1/4 TUESDAY 9309300039 930930 COCKPIT FEUD SPLIT AT AMERICA WEST BLOCKS A MOVE TO GAIN CONTROL OF THE AIRLINE PRITZKERLED BID WAS BACKED BY CEO BUT HIS RIVAL THE CHAIRMAN FOUGHT IT CHANCE TO ESCAPE CHAPTER 11 BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX MICHAEL CONWAY A FOUNDER OF AMERICA WEST AIRLINES HAS GUIDED THE CARRIER THROUGH THE FASTEST OF LIFE CYCLES IN 10 YEARS FROM MAVERICK FLEDGLING TO EMERGING GIANT TO THE EDGE OF EXTINCTION AND BACK AGAIN NOW HE IS BEING FORCED TO STEER THE AIRLINE WITH A COPILOT HE CAN'T GET ALONG WITH TURNAROUND EXPERT WILLIAM FRANKE THEIR INFIGHTING HAS TAKEN ON EPIC PROPORTIONS IN ARIZONA WHERE AMERICA WEST IS AMONG THE STATE'S LARGEST INDUSTRIAL ASSETS AND NOW THE FEUD HAS EVEN HELPED TO FOIL A BID BY AN INVESTOR GROUP TO TAKE CONTROL OF THE CARRIER AND INFUSE CASH A MOVE THAT WOULD HAVE HELPED AMERICA WEST EMERGE FROM BANKRUPTCYLAW PROCEEDINGS INVESTORS LED BY CHICAGO HOTELIER JAY PRITZKER SUBMITTED A PROPOSAL TO TAKE CONTROL OF THE COMPANY AMERICA WEST EXECUTIVES CONFIRM BUT THE BOARD OF DIRECTORS WITH MR FRANKE OPPOSING THE BID REJECTED IT EARLIER THIS MONTH TWO OTHER INVESTOR GROUPS ARE TALKING WITH THE CARRIER MR FRANKE SAYS AND WITH THE PRITZKERS STILL IN THE PICTURE A POSSIBLE BIDDING WAR LOOMS THOUGH STILL MIRED IN CHAPTER 11 AMERICA WEST SEEMS TO HAVE BRIGHT PROSPECTS AS IT MANAGES A NASCENT RECOVERY IT IS ONE OF ONLY TWO MAJOR AIRLINES IN THE BLACK FOR THE FIRST HALF OF THIS YEAR ENDING 10 STRAIGHT QUARTERS OF LOSSES IN THE BACKGROUND IS A DIVISIVE STRUGGLE BETWEEN TWO STRONGWILLED EXECUTIVES WHO SEEK TO CONTROL THE DESTINY OF THE NATION'S NINTHLARGEST AIRLINE EACH COVETS THE RIGHT TO CLAIM CREDIT AS THE CARRIER'S SAVIOR AND THAT TITLE PLUS THE UPPER HAND IN DETERMINING HOW THE COMPANY IS RUN WILL GO TO THE LEADER WHO RECRUITS FRESH CAPITAL TO GREASE THE WAY OUT OF CHAPTER 11 MR CONWAY CHIEF EXECUTIVE OFFICER HAS BEEN WOOING THE GROUP LED BY MR PRITZKER WHICH PLEDGED TO BUY OUT CERTAIN CREDITORS FOR 90 MILLION AND REPLACE CERTAIN BOARD MEMBERS THE INVESTORS INCLUDING WERTHEIM SCHRODER & CO ALSO HAD PLANNED TO INJECT 60 MILLION IN FRESH EQUITY INTO THE COMPANY TO HELP IT ESCAPE CHAPTER 11 THE MOVE WAS TO BE A PRELUDE TO OWNING THE COMPANY WITH THE LIKELY RESULT THAT MR CONWAY WOULD BE IN CHARGE AND MR FRANKE WOULD BE OUT NO WAY SAID MR FRANKE AMERICA WEST'S CHAIRMAN SERVING NOTICE THAT ANY SUCH PLAN MUST PLEASE HIM MR FRANKE OPPOSED THE PRITZKERLED INITIATIVE AND DIRECTORS REJECTED THE PROPOSAL 64 MR FRANKE SAYS THE OFFER WOULD HAVE LOCKED OUT OTHER BIDDERS TO SOME EXTENT THE SCHISM BETWEEN MESSRS CONWAY AND FRANKE REFLECTS THEIR INTENSE BUT DISSIMILAR PERSONALITIES THE 48YEAROLD MR CONWAY IS A SCRAPPY GRADUATE OF BERNARD M BARUCH COLLEGE IN NEW YORK WHO SALTS HIS SPEECH WITH FOURLETTER WORDS AND HAS BEEN KNOWN TO BREAKDANCE AT COMPANY PARTIES OF MR FRANKE MR CONWAY SAYS DRYLY IF I WERE PUTTING TOGETHER A BOWLING TEAM FOR THE FRIDAY NIGHT LEAGUE HE ISN'T THE FIRST PERSON I WOULD CALL THE 57YEAROLD MR FRANKE A PRODUCT OF STANFORD LAW SCHOOL IS A POLISHED NONONSENSE EXECUTIVE WHO PREFERS THAT UNDERLINGS CALL HIM MR FRANKE RESPONDING TO A FLIGHT ATTENDANT'S QUESTION ABOUT TOP MANAGEMENT MR FRANKE ONCE SAID I KNEW THAT WHEN I LEFT THE CASTLE I'D HAVE DRAGONS TO SLAY WHAT I DIDN'T KNOW IS THAT I'D HAVE DRAGONS TO SLAY INSIDE THE CASTLE MR FRANKE SAYS HE RECALLS MAKING THE STATEMENT AS A GENERAL PLEA FOR ALL EMPLOYEES TO PULL TOGETHER HOSTILITY BETWEEN THE TWO MEN REACHED A PEAK IN MAY WHEN MR FRANKE SOUGHT TO FIRE MR CONWAY BUT SEVERAL DIRECTORS FEARING THE MOVE WOULD DISRUPT THE CARRIER HEADED IT OFF BEFORE A VOTE COULD BE TAKEN INSTEAD THE BOARD EXTRACTED COMMITMENTS THAT THE TWO MEN WOULD TRY TO GET ALONG MR FRANKE WON'T COMMENT MR CONWAY CONFIRMS THE INCIDENT THE CURRENT TURMOIL AT AMERICA WEST IS THE LATEST TWIST FOR AN AIRLINE THAT SOME CRITICS SAY HAS LONG BEEN PLAGUED BY OUTSIZED AMBITIONS FOUNDED IN 1983 IN THE AFTERMATH OF DEREGULATION AMERICA WEST WAS CONCEIVED AS A LOWCOST REGIONAL CARRIER SIMILAR TO SOUTHWEST AIRLINES THE AIRLINE GREW RAPIDLY IN THE 1980S ULTIMATELY ESTABLISHING HUBS IN PHOENIX LAS VEGAS AND COLUMBUS OHIO AMASSING A FLEET OF 122 PLANES AND GENERATING MORE THAN 1 BILLION A YEAR IN REVENUE BUT THE CARRIER'S EXPANSION PROVED RECKLESS IT LOST ITS NICHE AS A LOWCOST REGIONAL CARRIER BY BOUNDING INTO MARKETS FROM NEW YORK TO NAGOYA JAPAN AND DIVERSIFYING ITS FLEET WITH BOEING 747400 JUMBO JETS AND DE HAVILLAND DASH8 COMMUTER AIRCRAFT COSTS SOARED SOUTHWEST BLITZED ITS MAIN MARKETS ULTIMATELY OVERTAKING AMERICA WEST AS THE LEADING CARRIER IN PHOENIX AND LAS VEGAS AND THE COMBINATION OF HIGHER FUEL COSTS AND LOWER TRAFFIC CAUSED BY THE PERSIAN GULF CRISIS AS WELL AS RECESSION PUSHED AMERICA WEST TO SEEK PROTECTION FROM ITS CREDITORS TWO YEARS AGO MORE RECENTLY WHILE OPERATING UNDER CHAPTER 11 IN THE FIRST SIX MONTHS OF THIS YEAR THE COMPANY EARNED 124 MILLION OR 52 CENTS A SHARE COMPARED WITH YEAREARLIER LOSSES OF 434 MILLION OR 185 A SHARE THE SAME GROWTH THAT ONCE IMPERILED AMERICA WEST ALSO MADE IT SO LARGE THAT LOCAL BUSINESS AND POLITICAL LEADERS REALIZED THE CARRIER'S DEMISE WOULD REPRESENT AN ECONOMIC LOSS FOR ARIZONA THAT IS WHY GOV FIFE SYMINGTON ASKED MR FRANKE THE HEAD OF A PRIVATE INVESTMENT FIRM TO HELP THE AIRLINE RAISE FUNDS IN THE SUMMER OF 1992 WHEN A FARE WAR REDUCED AMERICA WEST'S CASH RESERVES TO A PALTRY 20 MILLION MOST OF THE LOAN CAME FROM AMERICA WEST'S AIRCRAFT LESSORS GPA GROUP PLC OF IRELAND AND ANSETT TRANSPORT INDUSTRIES OF AUSTRALIA BUT MR FRANKE PLAYED A CRUCIAL ROLE IN RAISING 8 MILLION FROM PHOENIX BUSINESSES RANGING FROM DIAL CORP TO THE PHOENIX CARDINALS FOOTBALL TEAM AS PART OF THE DEAL THESE LENDERS FORCED OUT AMERICA WEST CHAIRMAN EDWARD R BEAUVAIS AND ASKED MR FRANKE TO TAKE THE TOP POST MR FRANKE HAD NO AIRLINE EXPERIENCE BUT HE IS A QUICK STUDY HE GREW UP IN SOUTH AMERICA WHERE HIS FATHER WORKED FOR THE US STATE DEPARTMENT AND SAILED THROUGH UNDERGRADUATE SCHOOL AND LAW SCHOOL IN FIVE YEARS A TOUGH NEGOTIATOR WHO USES HIS MASTERY OF FINANCIAL INFORMATION TO WEAR DOWN OPPONENTS MR FRANKE HAS PROVED TO BE A VERSATILE TROUBLESHOOTER IN VARIOUS EXECUTIVE POSTS HE HAS PLAYED MAJOR ROLES IN STREAMLINING A FARFLUNG FORESTPRODUCTS COMPANY RESTRUCTURING REALESTATE AND THIRD WORLD LOANS AT A PHOENIX BANK AND MORE RECENTLY OVERSEEING THE EMERGENCE FROM CHAPTER 11 OF CIRCLE K CORP A CHAIN OF CONVENIENCE STORES MR FRANKE IS WELLRESPECTED BY MOST AMERICA WEST EMPLOYEES BUT HE KEEPS HIS DISTANCE HE DOESN'T SIT IN THE CARRIER'S SKY BOX AT CARDINAL FOOTBALL GAMES AND IS RARELY SEEN AT COMPANY HEADQUARTERS MR FRANKE WHO IS PAID 450000 ANNUALLY SAYS HE WORKS 40 HOURS A WEEK FOR AMERICA WEST BUT MUCH OF THAT TIME IS SPENT WORKING AT THE OFFICES OF HIS PRIVATE INVESTMENT COMPANY OUTSIDERS BELIEVE MR FRANKE HAS BROUGHT NUTSANDBOLTS BUSINESS MANAGEMENT TO THE AIRLINE AND RESTORED CREDIBILITY TO A CARRIER THAT HAS OFTEN PROMISED MORE THAN IT HAS DELIVERED NO ONE THOUGHT BILL WOULD BE THE GUY WHO'D COME IN AND RUN THE AIRLINE BUT PEOPLE KNEW THEY'D GET THE STRAIGHT STORY SAYS RICHARD LEHMANN CHAIRMAN OF BANK ONE ARIZONA IN PHOENIX WHICH CONTRIBUTED TO AMERICA WEST'S DEBTORINPOSSESSION LOAN LAST YEAR MR FRANKE SAYS HIS PRIMARY INTEREST AT AMERICA WEST IS MAXIMIZING THE VALUE OF THE ESTATE OR SECURING THE BEST DEAL POSSIBLE FOR THE COMPANY TO EMERGE FROM CHAPTER 11 I JUST WANT TO GET THE MONEY IN HERE AND WHETHER MIKE STAYS OR GOES OR I STAY OR GO IS COMPLETELY SECONDARY HE SAYS MR FRANKE WILL SAY LITTLE ABOUT HIS RELATIONSHIP WITH MR CONWAY OR THEIR DISAGREEMENTS WE'RE JUST TWO DIFFERENT GUYS HE SAYS I JUST PARACHUTED IN HERE AND I THINK HE IS SENSITIVE TO THE FACT THAT I'M NOT FROM THE INDUSTRY MR CONWAY WHO EARNS 432000 A YEAR IS A TENACIOUS COMPETITOR IN AN OFFICE CLUTTERED WITH DIRTY SHIRTS AND A DESK OVERFLOWING WITH PAPERS AND AMERICA WEST MEMORABILIA HE WORKS 80HOUR WEEKS HE SOMETIMES PLAYS 45 HOLES OF GOLF ON A SINGLE SUNDAY AFTERNOON AN ACCOUNTANT BY TRAINING HE IS A PERSUASIVE AND AT TIMES INTIMIDATING FORCE WHEN HE GOT INTO AN ARGUMENT HIS FACE WOULD GET RED HIS EYES WOULD BEAD AND HE WOULD STARE THE OPPOSITION DOWN SAYS THOMAS TRANTUM AN ANALYST AT A MONEYMANAGEMENT FIRM IN NASHVILLE TENN WHO HELPED RAISE MONEY FOR AMERICA WEST IN ITS EARLY DAYS HE'S A BULLDOG IF MR FRANKE HAS HIS REPUTATION ON THE LINE AT AMERICA WEST MR CONWAY IS FIGHTING FOR HIS JOB AS WELL AS THE RESPECT THAT HE FEELS HE AND HIS TOP MANAGERS HAVE BEEN DENIED HE POINTEDLY NOTES THAT MR FRANKE ISN'T HIS BOSS HE REPORTS TO THE BOARD AND THAT AMERICA WEST'S IMPROVED PERFORMANCE REFLECTS A BUSINESS PLAN PUT INTO PLACE BY HIS MANAGEMENT TEAM MR CONWAY SAYS HE HAS CUT COSTS BY 184 MILLION REDUCED AIRCRAFT TO 86 FROM 122 RAISED 273 MILLION IN NEW FINANCING AND DROPPED 3500 PEOPLE FROM THE PAYROLL LEAVING ABOUT 11000 EMPLOYEES NO OUTSIDE GROUP SAT OVER ME AND TOLD ME TO DO THIS MR CONWAY SAYS THIS MANAGEMENT DID THIS AND I'M A LITTLE BIT TIRED OF THIS MANAGEMENT BEING MALIGNED EMPLOYEES ARE ONLY TOO AWARE OF THE DISPUTE BETWEEN THE TWO MEN SEVERAL MONTHS AGO MESSRS CONWAY AND FRANKE ATTENDED A PILOTS' MEETING THE MEN ARRIVED IN SEPARATE CARS 15 MINUTES APART AND WERE COOL TO EACH OTHER THE PILOTS MANY OF WHOM HAVE BEEN VERY CRITICAL OF MR CONWAY LAUNCHED A BLISTERING ATTACK ON HIS STEWARDSHIP MR FRANKE DIDN'T DEFEND HIS COLLEAGUE STANDING SILENT THROUGH THE INCIDENT ASKED ABOUT THE ISSUE LATER MR FRANKE SAYS I HAVE NO BASIS TO DEFEND PAST MANAGEMENT SOME WORKERS BLAME MR CONWAY FOR THE COMPANY'S BANKRUPTCYLAW FILING AFTER WHICH EMPLOYEES TOOK A 10 PAY CUT IN ADDITION THE SHARES OF STOCK THAT EMPLOYEES BOUGHT AS A CONDITION OF EMPLOYMENT NOW TRADE FOR ABOUT 50 CENTS MR CONWAY HAS ALSO BECOME THE LIGHTNING ROD FOR UNION DRIVES ON THE PART OF PILOTS AND FLIGHT ATTENDANTS DUMP CONWAY BUMPER STICKERS AND TSHIRTS HAVE SURFACED IN PHOENIX WE STILL HAVE THE SAME FACES IN MANAGEMENT MAKING THE SAME MISTAKES SAYS DOUG COMBS A PILOT I THINK FRANKE HAS MORE BUSINESS SENSE AND CAUTION BUT MR CONWAY ALSO GENERATES LOYALTY PARTICULARLY IN THE EXECUTIVE AND ADMINISTRATIVE STAFFS HE'S SPILLED HIS GUTS INTO THIS COMPANY SAYS ROSE CEGLIA DIRECTOR OF FREQUENTTRAVEL MARKETING SAYING SHE WORRIES ABOUT MR CONWAY'S HEALTH BECAUSE OF THE HOURS HE WORKS MR FRANKE'S INFLUENCE WAS FELT FROM THE MOMENT HE ARRIVED IN HIS AMERICA WEST OFFICE WHICH LACKS ANY COMPANY MEMENTOS SAVE A SINGLE MODEL AIRPLANE MR FRANKE SAYS PREVIOUS MANAGEMENT UNDERESTIMATED HOW MUCH MONEY A NEW INVESTOR WOULD HAVE TO PUT UP TO SUCCESSFULLY REORGANIZE THE COMPANY AMERICA WEST HAD SAID ABOUT 75 MILLION MR FRANKE SAID THE COMPANY NEEDED BETWEEN 150 MILLION TO 200 MILLION BUT NOW SAYS THE AMOUNT IS CLOSER TO THE LOW END OF THAT RANGE MR FRANKE ALSO SAYS HE PERSUADED THE COMPANY TO ABANDON ITS MONEYLOSING HAWAII ROUTE MR CONWAY DISPUTES THAT SAYING THE DECISION HAD ALREADY BEEN MADE AND THE ONLY QUESTION WAS TIMING CONFLICTS EMERGED OVER OTHER ISSUES AT THE SUGGESTION OF A THIRD PARTY MR FRANKE HAD DISCUSSIONS WITH ROBERT L CRANDALL CHAIRMAN OF AMERICAN AIRLINES PARENT AMR CORP ABOUT THE POSSIBILITY OF AMERICA WEST'S TAKING OVER AMERICAN'S SAN JOSE CALIF HUB SEVERAL BOARD MEMBERS AND EXECUTIVES INCLUDING MR CONWAY THOUGHT SUCH A MOVE CALLED PROJECT COWBOY WOULD BE DISASTROUS THOUGH MR CRANDALL ENDED THE TALKS INSIDERS SAY THE DISCUSSIONS CAUSED SEVERAL MONTHS OF FRICTION MR FRANKE WON'T COMMENT SAYING HIS TALKS WITH MR CRANDALL WERE CONFIDENTIAL TENSIONS ALSO ROSE WHEN MR FRANKE ASKED A GROUP OF MIDLEVEL MANAGERS TO STUDY THE COMPANY AND MAKE RECOMMENDATIONS ABOUT ITS OPERATIONS ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN LITTLE CAME OF THE THREEMONTH SURVEY EXCEPT RESENTMENT FROM SENIOR OFFICIALS WHO FELT THE MANAGERS WERE ILLPREPARED FOR SUCH AN UNDERTAKING MR FRANKE CONCEDES THE STUDY CAUSED DISRUPTIONS SAYING CHANGE ALWAYS CERTAINTY AND WE KNOW FROM HUMAN NATURE THAT MANY ARE RELUCTANT TO ADDRESS CHANGE MESSRS CONWAY AND FRANKE APPEAR TO HAVE SIMILAR VISIONS FOR WHAT THE REORGANIZED AMERICA WEST SHOULD LOOK LIKE A FULLSERVICE LOWCOST CARRIER THAT CAN CHARGE A SLIGHT PREMIUM OVER SOUTHWEST WHILE UNDERCUTTING THE MAJOR CARRIERS WITH LOWER FARES MANY ANALYSTS REMAIN SKEPTICAL THE AIRLINE STILL LACKS A CLEAR MARKET IDENTITY AND IT HAS HAD ONLY THREE PROFITABLE YEARS EXCLUDING ONETIME GAINS IN ITS HISTORY BUT ITS MODERN FLEET AND RELATIVELY STRONG HUBS SHOULD ATTRACT INVESTORS THE PRITZKER FAMILY WHICH OWNS HYATT CORP CONTROLLED BRANIFF FOR A NUMBER OF YEARS IN THE 1980S AND MADE BIDS FOR EASTERN AIRLINES AND PAN AMERICAN UNDER THE NAME OF AWA PARTNERS THE FAMILY NOW LEADS THE INVESTOR GROUP IN ITS EFFORTS TO GAIN CONTROL OF AMERICA WEST EVEN THOUGH THE PRITZKER FAMILY HAS BEEN REBUFFED THE AIRLINE IS STILL INTERESTED YESTERDAY THE CARRIER FILED A MOTION IN BANKRUPTCY COURT IN PHOENIX THAT WILL PERMIT IT TO REIMBURSE THE PRITZKER GROUP 250000 FOR THE CONTINUED STUDY OF THE AIRLINE AWA WILL MAKE ANOTHER OFFER FOR THE AIRLINE ACCORDING TO A PERSON FAMILIAR WITH THE PRITZKER'S OPERATIONS AND THE FAMILY IS WILLING TO WORK WITH MR FRANKE NEITHER THE PRITZKER GROUP NOR WERTHEIM SCHRODER WOULD COMMENT FOR NOW MR FRANKE HAS THE ADVANTAGE BECAUSE HE CONTROLS A MAJORITY OF THE BOARD AND ONE OF MR CONWAY'S ALLIES TIBOR SALLAY IS ABOUT TO STEP DOWN MR SALLAY A NEW YORK LAWYER REPRESENTS ANSETT WHOSE LOAN TO THE COMPANY HAS BEEN BOUGHT OUT BY AMERICA WEST IF I THOUGHT WE WERE CHASING AN IMPOSSIBLE DREAM THEN I WOULD VIEW MY SERVICES AS UNNECESSARY MR CONWAY SAYS BUT AS LONG AS MY MANAGEMENT TEAM AND I CAN PLAY A MEANINGFUL ROLE THEN I'LL CONTINUE TO WORK JUST AS HARD AS EVER AND FIGHT JUST AS HARD TOO SAYS ONE PERSON CLOSE TO THE COMPANY IT'S A SHAME THEY COULDN'T WORK TOGETHER THEY WOULD HAVE MADE A GREAT TEAM 9309300038 930930 RIVALS HUNTING FOR CASH IN BIDS FOR PARAMOUNT VIACOM GETS INVESTMENT BY BLOCKBUSTER QVC IS BACKED BY CHEMICAL BY WALL STREET JOURNAL REPORTERS STEVEN LIPIN JOHNNIE L ROBERTS AND RANDALL SMITH IN NEW YORK NEW YORK THE RIVAL BIDDERS FOR PARAMOUNT COMMUNICATIONS INC STEPPED UP THEIR SEARCH FOR CASH WITH VIACOM INC OBTAINING A 600 MILLION INVESTMENT FROM BLOCKBUSTER ENTERTAINMENT CORP AND QVC NETWORK INC LINING UP CHEMICAL BANKING CORP TO MANAGE A 3 BILLION FINANCING EFFORT VIACOM IS EXPECTED TO USE THE CASH FROM BLOCKBUSTER AND ANY OTHER INVESTORS IT CAN ROUND UP TO SWEETEN THE CASH PORTION OF ITS 77 BILLION STOCK AND CASH OFFER FOR PARAMOUNT PARAMOUNT STOCK SURGED 1625 A SHARE TO 79375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ON THE NEWS OF THE BLOCKBUSTER INVESTMENT IN VIACOM VIACOM'S BID VALUED YESTERDAY AT 6478 FOR EACH PARAMOUNT SHARE REMAINS WELL BELOW QVC'S RIVAL STOCK AND CASH OFFER OF 8325 A SHARE OR 99 BILLION IN EXCHANGE FOR ITS INVESTMENT IN VIACOM BLOCKBUSTER THE WORLD'S LARGEST HOME VIDEO RETAILER AGREED TO BUY PREFERRED STOCK CONVERTIBLE INTO VIACOM CLASS B NONVOTING SHARES AT 70 A SHARE VIACOM INSIDERS SAID IT IS ALSO CONTINUING TALKS WITH OTHER POTENTIAL INVESTORS INCLUDING COX ENTERPRISES INC AND SOUTHWESTERN BELL CORP BOTH COMPANIES DECLINED COMMENT MEANWHILE PEOPLE CLOSE TO THE SITUATION SAID THAT TWO OTHER REGIONAL BELL OPERATING COMPANIES BELLSOUTH CORP AND NYNEX CORP ARE SEEKING A WAY TO JOIN THE BIDDING BELLSOUTH THEY SAID HAS HAD DISCUSSIONS WITH BOTH VIACOM AND QVC ABOUT JOINING THEIR BIDS A BELLSOUTH SPOKESMAN SAID HE COULDN'T CONFIRM OR DENY THE REPORTS NYNEX ALSO DECLINED TO COMMENT VIACOM CHAIRMAN SUMNER REDSTONE ACKNOWLEDGED IN A TELEPHONE INTERVIEW THAT VIACOM IS CONTINUING TO TALK TO CABLE CONCERNS AND TO FOUR OF THE REGIONAL TELEPHONE COMPANIES THAT DON'T HAVE PHONE SERVICE IN THE SAME MARKETS AS VIACOM'S CABLE TELEVISION SYSTEMS THAT WOULD APPEAR TO RULE OUT U S WEST INC PACIFIC TELESIS GROUP AND AMERITECH CORP WHICH SERVE REGIONS THAT VIACOM CABLE ALSO SERVES MR REDSTONE SAID HE IS SEEKING A TOTAL OF NO MORE THAN THREE PARTNERS AND WOULD PREFER TO GET A TELEPHONE COMPANY AND A CABLE COMPANY TO KICK IN 500 MILLION EACH RATHER THAN HAVE ONE OR THE OTHER SUPPLY 1 BILLION HE SAID VIACOM IS INTERESTED IN THE STRATEGIC BENEFITS BOTH CABLE AND TELEPHONE COMPANIES CAN BRING TO THE VIACOMPARAMOUNT MERGER QVC A TELEVISION HOME SHOPPING COMPANY MAY ANNOUNCE AS EARLY AS TODAY THE LINING UP OF A BANK GROUP LED BY CHEMICAL TO RAISE ROUGHLY 3 BILLION TO HELP FINANCE THE 36 BILLION CASH PORTION OF ITS BID EQUIVALENT TO 30 A PARAMOUNT SHARE PARAMOUNT HAS SAID IT WILL BEGIN TALKS WITH QVC WHEN QVC PRODUCES EVIDENCE OF FINANCING SUCH AS BANK LETTERS OF COMMITMENT CHEMICAL HAS TOLD QVC IT WOULD COMMIT 800 MILLION TO 1 BILLION AND COULD RAISE THE REMAINING AMOUNT FROM OTHER LENDERS PEOPLE FAMILIAR WITH THE BANK DISCUSSIONS SAID CHEMICAL OFFICIALS DECLINED COMMENT VIACOM SHARES RETREATED WITH ITS CLASS A SHARES FALLING 150 TO 5950 AND ITS CLASS B SHARES DOWN 75 CENTS TO 5525 IN AMERICAN STOCK EXCHANGE TRADING THAT CUT THE VALUE OF VIACOM'S PARAMOUNT BID TO 6478 A SHARE OR 77 BILLION QVC STOCK INCHED 125 CENTS HIGHER TO 59625 IN NATIONAL OVERTHECOUNTER TRADING ERIC ROSENFELD DIRECTOR OF THE ARBITRAGE DEPARTMENT AT OPPENHEIMER & CO SAID THE RISE IN PARAMOUNT'S STOCK PRICE REFLECTED THE GREATER LIKELIHOOD THAT VIACOM WILL USE THE CASH INFUSION FROM BLOCKBUSTER PLUS OTHER POSSIBLE INVESTMENTS TO RAISE ITS BID HE ADDED THAT VIACOM'S STOCK DECLINED AS ITS CHANCES OF WINNING INCREASED ALTHOUGH VIACOM AND BLOCKBUSTER HAILED THEIR ARRANGEMENT AS A LONGTERM STRATEGIC RELATIONSHIP THEIR AGREEMENT INCLUDES A PROVISION ALLOWING EITHER SIDE TO CUT BLOCKBUSTER'S INVESTMENT IN HALF IF THE VIACOMPARAMOUNT MERGER ISN'T COMPLETED BY AUGUST BLOCKBUSTER CHAIRMAN H WAYNE HUIZENGA AGREED TO JOIN THE VIACOM BOARD BLOCKBUSTER PRESIDENT STEVEN R BERRARD SAID THE COMPANY HAD BEEN TALKING ON AND OFF WITH VIACOM ABOUT JOINT INVESTMENTS FOR SEVERAL MONTHS PRIOR TO THE CABLE AND ENTERTAINMENT COMPANY'S ANNOUNCEMENT THIS MONTH OF ITS PLANNED MERGER WITH PARAMOUNT BUT BLOCKBUSTER HAD BEEN SEEKING A WAY INTO THE PARAMOUNT DEAL AS WELL PEOPLE CLOSE TO QVC SAID BLOCKBUSTER APPROACHED IT ABOUT INVESTING IN THE QVC BID FOR PARAMOUNT BUT THAT IN RETURN FOR INVESTING CASH BLOCKBUSTER WAS ALSO SEEKING CERTAIN VIDEO RIGHTS THAT QVC WAS NOT PREPARED TO GRANT BLOCKBUSTER HAS BEEN SEEKING TO PROTECT ITS HOME VIDEO RETAILING BUSINESS WHICH IS UNDER HEAVY COMPETITION FROM PAYPERVIEW MOVIES ON CABLE BLOCKBUSTER WAS SEEKING AN UNDERSTANDING THAT IT COULD RELEASE PARAMOUNT MOVIES ON VIDEO PRIOR TO THEIR PAYPERVIEW SHOWINGS WHICH NOW COME FIRST BLOCKBUSTER OFFICIALS WEREN'T AVAILABLE TO COMMENT ON THAT ISSUE PARAMOUNT AND VIACOM YESTERDAY SAID NO DEAL OTHER THAN THE ONE ANNOUNCED HAD BEEN STRUCK WITH BLOCKBUSTER IN A STATEMENT VIACOM SAID AFTER CONSUMMATION OF VIACOM'S MERGER WITH PARAMOUNT WE WILL ACTIVELY EXPLORE AND PURSUE POTENTIAL WAYS IN WHICH WE AND BLOCKBUSTER CAN BENEFIT FROM OUR STRATEGIC RELATIONSHIP BLOCKBUSTER'S CONVERTIBLE PREFERRED IN VIACOM WILL CARRY A DIVIDEND OF 5 AND BE REDEEMABLE AFTER FIVE YEARS BOON FOR BLOCKBUSTER THE INVESTMENT IN VIACOM GIVES BLOCKBUSTER A BIG LEG UP ON ITS STRATEGY TO EXPAND IN ENTERTAINMENT AND CUT ITS DEPENDENCE ON HOME VIDEO RETAILING WHICH ACCOUNTS FOR ABOUT 85 OF ITS OPERATING PROFITS EARLIER THIS MONTH BLOCKBUSTER AGREED TO BUY REPUBLIC PICTURES FOR 100 MILLION THROUGH ITS NEARLY 70OWNED SPELLING ENTERTAINMENT UNIT BLOCKBUSTER'S STOCK HAS BEEN REACHING NEW HIGHS OVER THE PAST SEVERAL WEEKS FUELED LARGELY BY RUMORS THAT IT WOULD ACQUIRE THE REST OF SPELLING AND POSSIBLY ANOTHER HOLLYWOOD PRODUCTION CONCERN IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BLOCKBUSTER STOCK CLOSED AT 29125 A SHARE DOWN 125 CENTS BLOCKBUSTER ALSO HAS BRANCHED INTO THE MUSIC BUSINESS BY BUYING THE SOUND WAREHOUSE AND MUSIC PLUS CHAINS IT'S ALSO PAIRING UP WITH LONDONBASED VIRGIN RETAIL TO BUILD MEGASTORES WITH MUSIC BOOKS COFFEE BARS AND VIDEO GAMES EMANUEL GERARD CHAIRMAN OF GERARD KLAUER MATTISON & CO AN ENTERTAINMENT RESEARCH FIRM SAID THAT FROM HERE ON IN BOTH VIACOM AND QVC ARE LIKELY TO BE FOCUSING ON BOOSTING THE CASH PORTION OF THEIR OFFERS SINCE THE PREPONDERANCE OF THEIR OFFERS IS IN EACH CASE A SQUIRRELLY PIECE OF PAPER THAT IS HARD FOR INVESTORS TO VALUE I DON'T BELIEVE THIS IS ABOUT PRICE THIS IS NOW A GAME OF WHO CAN COME UP WITH THE MOST CASH HE SAID ANITA SHARPE IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9309300037 930930 REVIEW & OUTLOOK EDITORIAL ALEXANDRA TUTTLE WE ARE GRIEVED TO REPORT THAT ALEXANDRA TUTTLE A FREELANCE WRITER WHO CONTRIBUTED OFTEN TO OUR FOREIGN AND DOMESTIC EDITIONS IS MISSING AND PRESUMED DEAD AMID FIGHTING IN THE REPUBLIC OF GEORGIA MOSCOW NEWS REPORTED YESTERDAY THAT HER BODY WAS AMONG THE 40 THAT WERE IDENTIFIABLE IN THE WRECKAGE OF A PLANE THAT WAS SHOT DOWN AS IT LANDED AT SUKHUMI AIRPORT LAST WEEK NO OFFICIAL CONFIRMATION HAS BEEN POSSIBLE BECAUSE OF THE INTENSE FIGHTING AT THE AIRPORT A FEW PASSENGERS DID SURVIVE THE CRASH BUT OUR OWN EXTENSIVE QUESTIONING OF WITNESSES FORCES US TO ASSUME SHE WAS NOT AMONG THEM ALEXANDRA AN AMERICAN LIVING IN PARIS BEGAN WRITING THREE YEARS AGO AS A CONTRIBUTOR TO THE LEISURE & ARTS PAGE OF THE WALL STREET JOURNAL EUROPE SHE DISCUSSED AMONG OTHER THINGS THE CREATIVE IMPULSES OF PABLO PICASSO HOW FRENCH FILMS FINALLY WERE CONFRONTING THE DARK RECORD OF NAZI COLLABORATION IN WORLD WAR II AND THE MISPLACED OPTIMISM OF GERMAN EXPRESSIONIST ART EARLY IN THIS CENTURY SHE WAS REMARKABLE FOR THE BREADTH OF HER INTERESTS WRITING INTELLIGENTLY ON SUBJECTS RANGING FROM MODERN PHILOSOPHY TO HORSE RACING OVER THE PAST YEAR SHE BECAME INCREASINGLY DRAWN TO THE GREATEST DRAMA OF ALL WAR AND FROM TIME TO TIME JOINED THAT SPECIAL BREED OF REPORTERS WHO BRAVE BULLETS AND BOMBS TO GET STORIES HER DATELINES BEGAN TO COME FROM SUCH PLACES AS MOGADISHU WHERE A 15YEAROLD BOY TOTING AN AK47 CONFIDED TO HER THAT NO ONE WITH A GUN NEED GO HUNGRY IN SOMALIA SHE REPORTED FROM BOTH SIDES OF THE AZERIARMENIAN WAR OVER CONTROL OF NAGORNOKARABAKH IN SARAJEVO SHE INTERVIEWED A SNIPER IN THE HILLS ABOVE THE CITY FINDING HIM TO BE EERILY DISPASSIONATE ABOUT HIS DAILY WORK OF KILLING THE UNWARY OR UNLUCKY THESE KINDS OF WARS ARE PARTICULARLY HAZARDOUS FOR JOURNALISTS IN PART BECAUSE THE SOLDIERS WHO FIGHT THEM OFTEN ARE UNDISCIPLINED THE BATTLE LINES FLUID AND THE MEANS OF GETTING IN AND OUT OF THE WAR ZONE UNCERTAIN ALEXANDRA AN ENGAGING AND EXUBERANT YOUNG WOMAN QUICKLY MASTERED THE ART OF HITCHHIKING WITH SOLDIERS GOING INTO BATTLE SHE WAS DOING THAT LAST WEEK WHEN SHE HITCHED A RIDE ON THE ILLFATED AIRLINER TAKING TROOPS TO SUKHUMI ALTHOUGH EVEN HER CLOSE FRIENDS DIDN'T KNOW OF HER LATEST TRIP SHE PRESUMABLY WAS ON HER WAY TO WRITE ABOUT THE FIGHTING THERE WE OFFER OUR CONDOLENCES TO HER FAMILY HER MANY FRIENDS AND ALL THOSE WHO ENJOYED THE FRUITS OF HER TALENT WE WILL REMEMBER HER SPIRIT AND COURAGE AND WILL MISS HER VERY MUCH 9309300036 930930 BUSINESS BRIEF GREATER NEW YORK SAVINGS BANK FIRM COMPLETES STOCK SALE EXPECTS LOSS FOR 3RD QUARTER GREATER NEW YORK SAVINGS BANK COMPLETED A PRIVATE PLACEMENT OF 50 MILLION IN PREFERRED STOCK AND SAID PLANNED PROVISIONS FOR REALESTATE AND LOAN LOSSES WILL RESULT IN A THIRDQUARTER LOSS OF 24 MILLION IN THE YEAREARLIER QUARTER THE BANK EARNED 115000 THE STOCK SALE TO A LIMITED NUMBER OF INSTITUTIONAL INVESTORS WILL RESULT IN NET PROCEEDS OF 47 MILLION THE SAVINGS BANK SAID THAT AS A RESULT OF ITS INCREASED CAPITAL POSITION IT WILL ACCELERATE DISPOSAL OF NONPERFORMING ASSETS THE SAVINGS BANK PLANS TO DISPOSE OF ABOUT 100 MILLION OF NONPERFORMING ASSETS BY THE END OF 1994 AND AN ADDITIONAL 50 MILLION DURING 1995 IT WILL ESTABLISH A 15 MILLION REALESTATE LOSS PROVISION IN THIS YEAR'S THIRD QUARTER RELATED TO THE PLAN THE BANK WITH TOTAL ASSETS OF 25 BILLION ALSO EXPECTS A 12 MILLION PROVISION FOR LOAN AND REALESTATE LOSSES IN THE QUARTER 9309300035 930930 BUSINESS BRIEF VENCOR INC DUTCH AUCTION SET FOR 8 OF ALL SHARES OUTSTANDING VENCOR INC SAID IT STARTED A DUTCH AUCTION CASH TENDER OFFER FOR 15 MILLION COMMON SHARES OR 8 OF ITS SHARES OUTSTANDING UNDER THE FORMAT SHAREHOLDERS CAN TENDER SHARES AT PRICES THEY SPECIFY BETWEEN 21 AND 24 EACH THEN BASED ON THE NUMBER OF SHARES TENDERED AND ON PRICES VENCOR WILL PICK THE LOWEST SINGLE PURCHASE PRICE PER SHARE THAT WILL ENABLE IT TO BUY 15 MILLION SHARES THE OFFER WILL EXPIRE OCT 27 AT 5 PM BASED IN LOUISVILLE KY VENCOR WHICH OPERATES 26 LONGTERM CARE HOSPITALS SAID IT EXPECTS THE TENDER OFFER WILL COST 36 MILLION THE COMPANY DECLINED TO COMMENT ON ITS REASONS FOR THE OFFER 9309300034 930930 REVIEW & OUTLOOK EDITORIAL ASIDES TAXFREE QVC AS VIDEO HOME SHOPPING EXPANDS AND GOES UPSCALE ADDING ITS VOLUME TO EXISTING PRINTCATALOG ORDERS IS ANYONE TAKING NOTE THAT THIS IS ANOTHER DAGGER AIMED AT STATE SALES TAXES AT SOME POINT LOCAL RETAIL INDUSTRIES ARE GOING TO HAVE TO STAND THEIR GROUND AGAINST THESE UPWARDCREEPING LEVIES OR ELSE KISS CRITICAL BUSINESS GOODBYE TO THE PHONE PHENOMENON 9309300033 930930 BUSINESS BRIEF TOOTSIE ROLL INDUSTRIES INC CANDY MAKER WILL ACQUIRE 5 WARNERLAMBERT BRANDS IN A MARRIAGE OF FAMOUS CANDY FAMILIES TOOTSIE ROLL INDUSTRIES INC AGREED TO BUY THE JUNIOR MINTS SUGAR DADDY SUGAR BABIES CHARLESTON CHEW AND POM POMS BRANDS FROM WARNERLAMBERT CO TOOTSIE ROLL WITH 245 MILLION IN ANNUAL SALES ACQUIRED WARNERLAMBERT'S CAMBRIDGE MASS MANUFACTURING PLANT AS PART OF THE DEAL TERMS WEREN'T DISCLOSED THE LINES BEING PURCHASED HAD 1992 SALES OF ABOUT 60 MILLION SAID ELLEN GORDON TOOTSIE ROLL'S PRESIDENT CHICAGOBASED TOOTSIE ROLL IS KNOWN FOR ITS TOOTSIE ROLL AND TOOTSIE POPS CANDIES ALONG WITH CHARMS BLOW POPS CHARMS SQUARES MASON DOTS CELLA'S CHOCOLATE COVERED CHERRIES AND CHILD'S PLAY WARNERLAMBERT OF MORRIS PLAINS NJ SAID IT IS REFOCUSING ON CERTAIN CONFECTIONERY PRODUCTS SUCH AS TRIDENT SUGARLESS GUM AND HALLS COUGH TABLETS AS WELL AS ON ITS CONSUMER HEALTH PRODUCTS THE CHOCOLATE AND CARAMEL BUSINESS IT'S SELLING TO TOOTSIE ROLL WAS PURCHASED FROM NABISCO BRANDS IN 1988 9309300032 930930 BUSINESS BRIEF RALLY'S INC CHARGES HIGHER EXPENSES TO CUT 3RDQUARTER PROFIT RALLY'S INC SAID CHARGES AND HIGHERTHANEXPECTED EXPENSES WILL CUT THIRDQUARTER EARNINGS BY 55 MILLION EXCLUDING THE CHARGES AND EXPENSES THE LOUISVILLE KY FASTFOOD RESTAURANT OPERATOR SAID ITS THIRDQUARTER AND YEAREND PERSHARE EARNINGS WON'T MEET ANALYSTS' EXPECTATIONS OF 23 CENTS TO 25 CENTS AND 78 CENTS TO 85 CENTS A SHARE RESPECTIVELY RALLY'S PAID 2 MILLION OR 10 CENTS A SHARE TO SETTLE A LAWSUIT FILED BY INTERNATIONAL SHORTSTOP INC RALLY'S WILL ALSO RECORD A ONETIME CHARGE OF 1 MILLION OR FIVE CENTS A SHARE FOR PREVIOUSLY DEFERRED INTANGIBLE AND OTHER ASSETS ASSOCIATED WITH THE DEVELOPMENT OF NEW RESTAURANTS OR ACQUISITION OF NEW MARKETS THE COMPANY SAID IT ALSO ANTICIPATES A CHARGE OF 500000 OR THREE CENTS A SHARE FOR INCREASED INCOME TAXES AND ASSET WRITEOFFS IN THE YEARAGO PERIOD RALLY'S EARNED 65 MILLION OR 54 CENTS A SHARE 9309300031 930930 MAPPING THE MIND THE KNOWING EYE ONE MAN'S ACCIDENT IS SHEDDING NEW LIGHT ON HUMAN PERCEPTION A SEVERED CONNECTION SHOWS HOW THE BRAIN INTERPRETS WHAT THE EYES ARE SEEING MAP WE'RE ALWAYS UPDATING BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL WHEN SHOWN A DRAWING OF AN ASPARAGUS SPEAR AND ASKED WHAT IT IS THE YOUNG MAN REPLIES A ROSE TWIG WITH THORNS YET WHEN ASKED TO HE CAN DASH OFF AN EASILY RECOGNIZABLE DRAWING OF ASPARAGUS WHEN SHOWN A HANDDRAWN MAP OF HIS NATIVE ENGLAND WITH HIS BIRTHPLACE MARKED HE CAN'T IDENTIFY IT EVEN THOUGH HE HIMSELF DREW THE MAP FROM MEMORY EVEN STRANGER THE YOUNG MAN CAN WRITE A LETTER BUT HE CAN'T READ IT THE PECULIAR PROBLEMS OF CK AS HE IS KNOWN ARE CREATING A STIR AMONG NEUROSCIENTISTS HIS CASE WAS FIRST DESCRIBED IN A SCIENTIFIC JOURNAL LAST FALL BY NEUROPSYCHOLOGIST MARLENE BEHRMANN AND HER COLLEAGUES AT THE ROTMAN RESEARCH INSTITUTE IN TORONTO CK IS A 33YEAROLD ENGLISH IMMIGRANT WHO SUFFERED A HEAD INJURY IN A CAR CRASH IN 1988 THE ACCIDENT APPEARS TO HAVE BROKEN A PREVIOUSLY UNKNOWN CONNECTION BETWEEN A SPOT IN THE BRAIN THAT COMPILES IMAGES COMING FROM THE EYES AND A LIBRARY OF IMAGES IN THE MEMORY HENCE HE CANNOT RECOGNIZE WHAT HE SEES YET HE CAN STILL TAP INTO THE LIBRARY OF IMAGES STORED IN HIS MEMORY CALLING THEM UP IN HIS MIND'S EYE ON CUE IF HE NEEDS FOR EXAMPLE TO DRAW AN ASPARAGUS SPEAR OR A MAP OF ENGLAND RESEARCH INTO HOW THE BRAIN PERCEIVES THE WORLD IS JUST ONE OF THE AREAS OF BRAIN SCIENCE PROPELLED BY NEW TECHNIQUES SUCH AS MAGNETIC RESONANCE IMAGING THAT ALLOW SCIENTISTS TO WATCH WHOLE CLUTCHES OF CELLS IN ACTION AS A PERSON MOVES A MUSCLE SPEAKS A WORD TASTES A LEMON OR FALLS INTO DEPRESSION TECHNIQUES FOR WIRETAPPING THE BRAINS OF LABORATORY ANIMALS ARE NOW SO PRECISE THAT EACH INDIVIDUAL NERVE CELL OR NEURON IN A CLUSTER CAN BE RECORDED MAKING IT POSSIBLE TO MAP THE NEW WORLD OF THE BRAIN IN PREVIOUSLY UNIMAGINABLE DETAIL WITH CONTINUED EFFORTS SCIENTISTS WILL BE ABLE TO EXPLAIN HOW NERVECELL SIGNALS GIVE RISE TO MEMORY LANGUAGE MOVEMENT AND CONSCIOUSNESS AND HOW THEY HELP REGULATE SLEEP REPRODUCTION AND OTHER BODY FUNCTIONS DECLARES A REPORT OF SCIENTIFIC ADVISERS TO THE NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE SUCH RESEARCH IT CONTINUES WILL ALLOW SCIENTISTS TO BEGIN TO UNDERSTAND DISORDERS SUCH AS LEARNING DISABILITIES DEMENTIA OR PARALYSIS AND TO OBTAIN LEADS TO DEVISE NEW THERAPIES OF ALL BRAIN FUNCTIONS SCIENTISTS HAVE PROBED DEEPEST INTO SENSORY SYSTEMS THE BRAIN IS CONSTANTLY MONITORING ITS SURROUNDINGS THROUGH THE EARS THE SKIN THE NOSE AND THE TONGUE BUT ITS MOST IMPORTANT MONITORS ARE THE EYES THE VISUAL SYSTEM PROBABLY OPERATES ON THE SAME BASIC PRINCIPLES AS THE OTHER FOUR SENSES BUT IS FAR MORE ACCESSIBLE TO EXPERIMENTATION IT CAN BE MANIPULATED WITH PHOTOGRAPHS OPTICAL ILLUSIONS AND LENSES AND THE PARTS OF THE BRAIN THAT PROCESS VISUAL INFORMATION ARE EASILY TAPPED WITH PROBES AND SENSORS RESEARCHERS ARE COMING UP WITH SOME SURPRISES AS THEY PURSUE QUESTIONS THAT MIGHT OCCUR ONLY TO A SMALL CHILD OR A SCIENTIST HOW DO WE KNOW AN OBJECT WE ARE LOOKING AT IS MOVING HOW DO WE KNOW AN OBJECT DIDN'T MOVE THE ANSWERS ARE COMING FROM SUCH WIDELY DIVERSE SUBJECTS AS A MONKEY STARING AT MOVING LIGHTS ON A TV SCREEN AND A WOMAN WHO HAS TROUBLE POURING CREAM INTO HER COFFEE AND FROM THE YOUNG MAN IN CANADA WHO CAN'T RECOGNIZE HIS OWN DRAWINGS J ANTHONY MOVSHON A NEURAL SCIENTIST AT NEW YORK UNIVERSITY AND A RESEARCHER WITH THE HOWARD HUGHES MEDICAL INSTITUTE AT NYU IS TRYING TO FIGURE OUT HOW WE KNOW AN OBJECT IN OUR LINE OF SIGHT IS MOVING AND IN WHICH DIRECTION IT IS GOING THE SEEMINGLY OBVIOUS ANSWER WOULD BE THAT THE BRAIN TAKES EACH NEW IMAGE FLASHED BACK FROM THE RETINA AND COMPARES IT WITH THE PREVIOUS IMAGE TO SEE IF ANY OBJECTS IN VIEW HAVE CHANGED POSITION BUT THE RESEARCHERS ARE FINDING THIS ISN'T THE WAY THE BRAIN PERCEIVES MOTION IN THE EARLY 1970S VISION RESEARCHERS BEGAN DISCOVERING THAT THE PATCHES OF NEURONS IN THE CORTEX THAT HANDLE VISUAL SIGNALS ARE HIGHLY SPECIALIZED SOME RESPOND ONLY TO SPECIFIC COLORS AND OTHERS APPARENTLY DEVOTED TO DETERMINING SHAPES OF OBJECTS RESPOND ONLY TO LINES OR EDGES ORIENTED IN CERTAIN DIRECTIONS A THIRD LAYER OF NEURONS IS TURNED ON AND OFF ONLY BY MOVEMENT IN THE FIELD OF VISION THE SURPRISE WAS THAT A RELATIVELY SMALL NUMBER OF NEURONS COULD ACCOUNT FOR THE JUDGMENT OF PERCEIVED MOTION DR MOVSHON SAYS THE MOTION DETECTORS INVOLVE CLUSTERS OF ONLY A FEW SCORE TO A FEW HUNDRED NEURONS EACH CLUSTER SEEMS TO HAVE AN EXCLUSIVE TASK SUPPLYING JUST ONE OF THE MANY PIECES OF INFORMATION THE BRAIN USES TO PERCEIVE MOTION IN ONE EXPERIMENT DR MOVSHON AND WILLIAM T NEWSOME OF STANFORD UNIVERSITY PLACE MICROSCOPIC ELECTRODES IN A MONKEY'S BRAIN TO TAP A TINY CLUSTER OF NEURONS BELIEVED TO DETECT THE DIRECTION IN WHICH AN OBJECT IS MOVING THE RESEARCHERS RECORD THE FIRING OF THE NEURONS AS THE MONKEY WATCHES A TV SCREEN COVERED WITH MOVING DOTS OF LIGHT INITIALLY THE DOTS MOVE ABOUT IN RANDOM DIRECTIONS AND AT VARYING SPEEDS BUT GRADUALLY MORE AND MORE OF THEM BEGIN TO MOVE IN THE SAME DIRECTION AT THE SAME SPEED THE RESEARCHERS KNOW THAT HUMANS WHO CAN DESCRIBE WHAT THEY ARE SEEING FIRST BECOME AWARE THAT THE DOTS ARE ASSUMING SOME DIRECTIONALITY WHEN 3 TO 5 OF THE DOTS ARE MOVING IN THE SAME DIRECTION AND SPEED SO IT IS WITH THE MONKEYS AS THE NUMBER OF DOTS MOVING IN THE SAME DIRECTION PASSES THE 3 TO 5 LEVEL THE NEURONS DEVOTED TO THAT DIRECTION BEGIN FIRING IN CONCERT WITH THE MOVING DOTS INDICATING THEY ARE TELLING THE MONKEY'S BRAIN THAT SOME DIRECTIONALITY IS APPEARING IN THE MOVEMENT OF THE DOTS BUT THE RESEARCHERS WANT TO KNOW IF THESE NEURONS ARE THE MAIN DIRECTIONDETERMINING TOOLS OF THE BRAIN THEY DAMAGE A FEW OF THEM NOW 20 TO 30 OF THE DOTS HAVE TO BE MOVING IN THE SAME DIRECTION BEFORE THE PATTERN OF NEURON FIRING INDICATES THE BRAIN HAS DETECTED DIRECTIONALITY THIS TINY CLUSTER OF NEURONS IS INDEED ONE OF THE KEY LINKS IN THE CIRCUIT THAT TELLS THE BRAIN THE DIRECTION AN OBJECT IS MOVING A COROLLARY TO THE MOTION PROBLEM IS BEING TACKLED BY NEUROLOGIST MICHAEL E GOLDBERG AT THE FEDERAL NATIONAL EYE INSTITUTE IN BETHESDA MD HE ESSENTIALLY IS TRYING TO FIGURE OUT HOW THE BRAIN KNOWS SOMETHING DIDN'T MOVE MILLIONS OF TIMES A DAY THE GAZE OF THE EYES FLITS FROM ONE OBJECT TO ANOTHER IN THE VISUAL LANDSCAPE IN PERUSING THIS NEWSPAPER FOR EXAMPLE THE READER'S GAZE MIGHT FLIT FROM HEADLINE TO HEADLINE AS A STORY IS BEING READ THE GAZE MOVES FROM THE END OF ONE LINE DOWN AND LEFT TO THE BEGINNING OF THE NEXT EACH TIME THE GAZE IS REDIRECTED EVERYTHING IN SIGHT CHANGES POSITION IF THE READER'S GAZE SHIFTS FROM COLUMN ONE TO COLUMN SIX FOR EXAMPLE THE HEADLINE IN THE CENTER OF THE PAGE THAT USED TO BE TO THE RIGHT SIDE OF THE FIELD OF VIEW SUDDENLY JUMPS TO THE LEFT SIDE YET EVEN THOUGH EVERYTHING IN THE VISUAL IMAGE JUMPS TO A NEW POSITION EVERY FRACTION OF A SECOND THE BRAIN PERCEIVES A STABLE WORLD CHAIRS STAY IN CORNERS AND PICTURES STAY ON THE WALL THIS ABILITY OF THE BRAIN TO KEEP THE VISUAL WORLD STABLE DESPITE THE CAVORTING IMAGES ON THE RETINA HAS PUZZLED RESEARCHERS FOR DECADES A PREVAILING THEORY SAYS THE CORTEX THE THINKING PART OF THE BRAIN TAKES THE SIGNALS FROM THE RETINA AND ASSEMBLES THEM INTO A MAP OF THE VISUAL WORLD IF YOU MAKE AN EYE MOVEMENT THAT CHANGES THE REPRESENTATION ON THE RETINA THEN EVERYTHING IN THE MAP IN THE VISUAL CORTEX SHOULD BE WRONG DR GOLDBERG EXPLAINS THE CORTEX MAP WOULD SHOW WHERE OBJECTS USED TO BE IN THE FIELD OF VIEW BUT NOT WHERE THEY ARE NOW THEREFORE THE THEORY GOES THE BRAIN MUST KNOW WHAT IT IS GOING TO SEE BEFORE IT SEES IT SOME EVIDENCE THAT THIS IS THE CASE COMES FROM EXPERIMENTS IN WHICH DR GOLDBERG AND HIS COLLEAGUES TAP THE NEURONS THAT RECORD THE VISUAL MAP IN THE CORTEX OF A MONKEY WHEN THE MONKEY'S ATTENTION IS CENTERED ON A FLASHING BUT UNMOVING LIGHT IT TAKES THESE NEURONS ABOUT 70 MILLISECONDS ONETHOUSANDTHS OF A SECOND TO BEGIN FIRING PRESUMABLY RECORDING WHAT THE EYES ARE GAZING AT THEN THE RESEARCHERS SUDDENLY FLASH A NEW LIGHT SOME DISTANCE AWAY CAUSING THE MONKEY TO LOOK OVER AT THIS NEW DISTRACTION THE MAPPING NEURONS BEGIN FIRING 80 MILLISECONDS BEFORE THE MONKEY'S EYES BEGIN TO MOVE THE MONKEY'S EYES THEN MOVE AND 70 MILLISECONDS LATER THE NEURONS FIRE INDICATING THE GAZE IS NOW CENTERED ON THE SECOND LIGHT THIS INDICATES THAT JUST BEFORE THE EYES MOVE THE BRAIN UPDATES THE MAP TO SHOW WHERE EVERYTHING IS SUPPOSED TO BE WHEN THE GAZE ACTUALLY DOES SHIFT IF IT DIDN'T DO THIS YOU WOULDN'T KNOW WHERE THINGS ARE DR GOLDBERG SAYS A TANTALIZING GLIMPSE OF WHAT MIGHT HAPPEN TO A HUMAN IF THIS SYSTEM FAILED COMES FROM A WOMAN ENCOUNTERED BY NEUROLOGIST DAVID WAITZMAN AT THE UNIVERSITY OF CONNECTICUT HEALTH CENTER IN FARMINGTON DR WAITZMAN IS TRYING TO TRACE THE PATHWAY THAT SIGNALS FROM THE EYE FOLLOW AS THEY RACE THROUGH THE BRAIN HIS RESEARCH RECENTLY BROUGHT HIM INTO CONTACT WITH A WOMAN WHO HAS A WEAK MUSCLE IN ONE EYE THIS EYE MOVES SLOWER THAN THE OTHER SO IT DOESN'T SHIFT ITS GAZE AS MUCH AS THE STRONGER EYE IN MOST PEOPLE THE BRAIN CAN ADJUST FOR THIS DISCREPANCY IN THE SIGNALS IT GETS FROM THE TWO RETINAS THE WOMAN HOWEVER HAS ANOTHER PROBLEM A SMALL STROKE DAMAGED THE PATHWAY THAT APPARENTLY RELAYS THE RETINAL SIGNALS TO THE CORTEX ONE TASK OF THAT PATHWAY DR WAITZMAN BELIEVES IS TO MATCH THE NEW RETINAL IMAGE WITH THE CORTEX MAP AFTER THE GAZE SHIFTS THEREBY CONFIRMING THAT THE EYES HAVE MOVED AS INSTRUCTED THE NEUROLOGIST SAYS HE BELIEVES BUT HASN'T PROVED THAT THIS DAMAGE ACCOUNTS FOR A PROBLEM THE WOMAN HAS WHEN SHE RELIES ON HER WEAK EYE FOR SUCH TASKS AS POURING CREAM IN HER COFFEE THE DECISION TO MOVE HER GAZE TO THE COFFEE CUP CAUSES THE VISUAL MAP IN THE CORTEX TO BE REDRAWN TO SHOW WHERE THE COFFEE CUP WILL BE WHEN HER GAZE SHIFTS THE WEAK EYE HOWEVER DOESN'T MOVE AS MUCH AS IT IS TOLD TO BUT BECAUSE OF THE STROKE THE BRAIN DOESN'T KNOW THIS THE CONFLICT BETWEEN WHAT THE EYE IS SEEING AND WHAT THE CORTEX THINKS IT IS SUPPOSED TO SEE LEADS THE BRAIN TO MISCALCULATE HOW MUCH TO MOVE THE MUSCLES HOLDING THE CREAM PITCHER AND THE WOMAN POURS THE CREAM ON THE TABLECLOTH THE STRANGE CASE OF CK THE YOUNG MAN IN CANADA WHO CAN'T RECOGNIZE HIS OWN DRAWINGS IS PUSHING THE NEUROSCIENTISTS INTO A NEWER MYSTERY AT A MUCH HIGHER LEVEL OF THE BRAIN'S VISUAL PROCESSING THIS IS THE MYSTERY OF HOW WE KNOW WHAT WE ARE SEEING UNTIL CK AND ONE OTHER BRAINDAMAGED PERSON CAME ALONG IT WAS THOUGHT THAT THE BRAIN USED THE SAME BUNCH OF NEURONS FOR RECOGNIZING WHAT THE EYES ARE SEEING AND FOR REMEMBERING WHAT THINGS LOOK LIKE BOTH ABILITIES IT WAS THOUGHT CENTERED IN A VAST STOREHOUSE OF IMAGES THE MEMORY HAD ACCUMULATED RECOGNITION OR PERCEPTION IT WAS BELIEVED INVOLVED MATCHING UP THE IMAGES FLASHING IN FROM THE RETINAS WITH THOSE IN THE STOREHOUSE WHILE IMAGERY INVOLVED CALLING UP STORED IMAGES ON CUE THIS ONESYSTEM IDEA WAS REINFORCED BY THE OBSERVATION THAT MANY BRAINDAMAGED PATIENTS WHO HAD TROUBLE RECOGNIZING WHAT THEY WERE LOOKING AT ALSO HAD TROUBLE REMEMBERING WHAT THINGS LOOK LIKE BUT THE CASE OF CK'S BAFFLEMENT WITH ASPARAGUS SUGGESTS THAT VISUAL PERCEPTION AND VISUAL IMAGERY INVOLVE SEPARATE PATCHES OF NEURONS ONE POSSIBILITY IS THAT THERE ARE TWO STOREHOUSES OF IMAGES ONE FOR PERCEPTION AND ONE FOR MENTAL IMAGERY AND CK'S ACCESS TO THE FIRST HAS BEEN DAMAGED BUT HIS ACCESS TO THE SECOND IS INTACT THE ALTERNATIVE IS THAT THERE ARE TWO ROUTES TO THE ONE BIG STOREHOUSE BUT CK ALSO HAS PRODUCED AN EVEN STRANGER MYSTERY DURING HIS BATTERY OF TESTS THE PSYCHOLOGISTS SHOWED HIM PHOTOGRAPHS OF 54 FACES EACH ONE TAKEN HEAD ON HE WAS ASKED TO MATCH EACH OF THESE WITH A PHOTOGRAPH OF EACH FACE TAKEN IN THREEQUARTERS VIEW HE CORRECTLY MATCHED 49 OF THE PHOTOGRAPHS A HIGHERTHANNORMAL SCORE CK'S ABILITY TO RECOGNIZE HUMAN FACES WAS UNTOUCHED BY HIS HEAD INJURY SUGGESTING THAT THE BRAIN HAS A SEPARATE SYSTEM FOR RECOGNIZING PEOPLE PERHAPS TO DISTINGUISH BETWEEN FRIEND AND FOE 9309300030 930930 NOTABLE & QUOTABLE FROM A SPEECH BY CHARLES MURRAY REPRINTED IN THE OCTOBER ISSUE OF REASON MAGAZINE THE LEFT TALKS MOURNFULLY ABOUT THE ATOMIZATION OF SOCIETY AND ITS ALIENATION THE END OF COMMUNITY IT'S ALL THE FAULT OF CAPITALISM AND MULTINATIONAL CORPORATIONS THEY SAY NONSENSE THE PROBLEM IS THAT THE GOVERNMENT DESTROYS COMMUNITY WE HAVE COMMUNITYINHIDING ALL OVER THIS COUNTRY WHEREVER PEOPLE DO NOT HAVE LARGE BUREAUCRACIES GETTING IN THE WAY OF IT ORDINARY ROUGHHEWN ARGUMENTATIVE SELFINTERESTED PEOPLE LEFT TO THEMSELVES UNDER A RULE OF COMMON LAW DO VERY WELL THANK YOU IN TAKING CARE OF THEMSELVES IT USED TO WORK IN BIGCITY NEIGHBORHOODS AS WELL AS SMALL TOWNS IT COULD AGAIN 9309300029 930930 LESLIE FAY COS' PROFITS RESTATED FOR PAST 3 YEARS ACTION IS TAKEN TO REVERSE FINANCIAL IRREGULARITIES CEO'S DUTIES ARE CUT BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LESLIE FAY COS RESTATED ITS EARNINGS FOR THE PAST THREE YEARS TO REVERSE 81 MILLION OF PRETAX ACCOUNTING IRREGULARITIES AND TOOK THE UNUSUAL STEP OF STRIPPING ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN POMERANTZ OF HIS FINANCIAL RESPONSIBILITIES YET IN ANNOUNCING THE RESULTS OF ITS EIGHTMONTH INTERNAL INVESTIGATION INTO THE SCANDAL THE TROUBLED APPAREL MAKER FAILED TO EXPLAIN WHY IT HAD OCCURRED OR HOW SUCH PERVASIVE FRAUD COULD HAVE ESCAPED TOP MANAGEMENT'S ATTENTION FOR SO LONG WHILE CONCLUDING THAT NEITHER SENIOR EXECUTIVES NOR DIRECTORS HAD KNOWN ABOUT THE SCHEME THE BOARD'S AUDIT COMMITTEE CRITICIZED MANAGEMENT FOR FAILING TO UNCOVER IT EARLIER AFTER CHARGES TO REFLECT THE FALSE ENTRIES AND VARIOUS OTHER ADJUSTMENTS LESLIE FAY PILED UP A COMBINED NET LOSS OF 367 MILLION OVER THE FISCAL YEARS 1990 1991 AND 1992 WIPING OUT WHAT HAD BEEN REPORTED AS A TOTAL OF 82 MILLION OF NET INCOME FOR THOSE YEARS WHILE RETAINING HIS TITLES MR POMERANTZ 58 YEARS OLD THE COMPANY'S LARGEST SHAREHOLDER AND SON OF THE COMPANY'S FOUNDER HAS RELINQUISHED OVERSIGHT OF FINANCIAL OPERATIONS TO LESLIE FAY'S PRESIDENT AND CHIEF OPERATING OFFICER MICHAEL BABCOCK WHO WILL REPORT DIRECTLY TO THE BOARD EXPLAINING WHY MR POMERANTZ WILL CONTINUE AS CEO MR BABCOCK SAID HE HAS BEEN EXONERATED AND HE HAS VERY CLOSE RELATIONSHIPS WITH RETAILERS THAT DO BUSINESS WITH OUR COMPANY CITING WEAK DEMAND FOR APPAREL AND HIGHER RETAIL MARKDOWNS LESLIE FAY ALSO REPORTED A 378 MILLION NET LOSS OR 202 A SHARE FOR THE FIRST SIX MONTHS OF FISCAL 1993 ENDED JULY 3 ON SALES OF 338 MILLION THE LOSS WAS AFTER REORGANIZATION CHARGES OF 165 MILLION ACCRUED INTEREST EXPENSE OF 104 MILLION AND A TAX BENEFIT OF 45 MILLION LESLIE FAY'S STOCK CLIMBED 625 CENTS OR 23 TO CLOSE AT 3375 YESTERDAY IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING OF 446500 SHARES THE LONGAWAITED REPORT ON THE FRAUD THAT FORCED THE COMPANY TO FILE FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN APRIL PROVIDED FEW NEW DETAILS ABOUT HOW OR WHY THE FRAUD WAS PERPETRATED THE INVESTIGATION BY THE AUDIT COMMITTEE ASSISTED BY THE NEW YORK LAW FIRM OF WEIL GOTSCHAL & MANGES AND AUDITORS ARTHUR ANDERSEN & CO CONCLUDED THAT SENIOR MANAGEMENT AND DIRECTORS HAD FAILED TO ACT ON AVAILABLE INFORMATION THAT MIGHT HAVE LED TO AN EARLIER DISCOVERY OF THE ACCOUNTING IRREGULARITIES THE COMMITTEE NOTED THAT OFFICERS AND DIRECTORS HAD RELIED ON DATA PROVIDED BY PAUL F POLISHAN LESLIE FAY'S FORMER CHIEF FINANCIAL OFFICER LESLIE FAY SAID YESTERDAY THAT IT FIRED MR POLISHAN WHO HAS BEEN ON PAID LEAVE SINCE MARCH ALSO FIRED WAS DONALD KENIA THE CORPORATE CONTROLLER WHO REPORTED TO HIM AND WHO LAST JANUARY CONFESSED TO HAVING MADE THE FALSE ENTRIES IN THE COMPANY'S BOOKS MR KENIA HAD BEEN SUSPENDED WITH PAY SINCE THE FRAUD CAME TO LIGHT THE COMPANY SAID THAT BOTH WERE TERMINATED FOR CAUSE BUT WOULDN'T ELABORATE NEITHER MR POLISHAN NOR MR KENIA COULD BE REACHED FOR COMMENT LESLIE FAY SAID IT CONTINUES TO BELIEVE THAT NO FUNDS WERE STOLEN BUT IT HASN'T YET EXPLAINED WHAT HAD MOTIVATED ITS EMPLOYEES TO ALTER ITS FINANCIAL RECORDS A LESLIE FAY SPOKESMAN SAID THAT THE INVESTIGATION IS AN INTERNAL MATTER AND THAT IT DOESN'T PLAN TO RELEASE THE CONFIDENTIAL REPORT WHICH IS SAID BY THOSE CLOSE TO THE INVESTIGATION TO CONTAIN MORE THAN 600 PAGES OF TEXT AND SUPPORTING DOCUMENTS LESLIE FAY SAID THE RESTATED FIGURES FOR 1992 1991 AND 1990 CAN'T BE AUDITED ACCORDING TO JOHN S DUBEL LESLIE FAY'S CHIEF FINANCIAL OFFICER THIS IS BECAUSE THE COMPANY COULDN'T RECONSTRUCT A BASELINE STARTING POINT FROM PREVIOUS YEARS' AUDITS MR DUBEL SAID THAT THE COMPANY'S LENDERS HAVEN'T RAISED ANY OBJECTIONS TO THE UNAUDITED FIGURES BUT THAT LESLIE FAY WILL TAKE THE MATTER UP WITH THE SECURITIES AND EXCHANGE COMMISSION THE SEC AND THE US ATTORNEY'S OFFICE IN MANHATTAN ARE UNDERSTOOD TO BE CONDUCTING INQUIRIES INTO LESLIE FAY BDO SEIDMAN THE COMPANY'S LONGTIME AUDITOR HAS WITHDRAWN ITS OPINIONS ON BOTH THE 1990 AND 1991 FINANCIAL STATEMENTS IN A STATEMENT THE FIRM EXPRESSED CONFIDENCE THAT WE WILL BE FOUND TO HAVE FULLY COMPLIED WITH PROFESSIONAL STANDARDS BDO SEIDMAN ADDED THAT ACCOUNTING IRREGULARITIES DUE TO COLLUSIVE FRAUD MAY NOT BE DETECTED BY A PROPERLY DESIGNED AND EXECUTED AUDIT IT DESCRIBED THE SITUATION AT LESLIE FAY AS A CAREFULLY CONCEALED CASE OF FRAUD INVOLVING THE CORPORATE CONTROLLER AND MORE THAN 20 MEMBERS OF HIS FINANCIAL ACCOUNTING STAFF IN ITS RESTATED FIGURES LESLIE FAY INCLUDED NUMEROUS ONETIME CHARGES THAT REFLECT NOT ONLY THE FALSE ENTRIES BUT ALSO CERTAIN INCREASED RESERVES AND ACCOUNTING ADJUSTMENTS AS WE'VE HAD AN OPPORTUNITY TO TAKE A FRESH LOOK AT OUR BALANCE SHEET WE ARE CLEANING IT UP MR DUBEL SAID IN FISCAL 1992 THE APPAREL MAKER POSTED A NET LOSS OF 656 MILLION OR 345 A SHARE ON SALES OF 7721 MILLION THE LOSS INCLUDES AFTERTAX CHARGES OF 903 MILLION CONSISTING OF 418 MILLION TO REVERSE THE IRREGULARITIES AND 485 MILLION OF OTHER ONETIME CHARGES EARLIER LESLIE FAY HAD ESTIMATED THAT IT WOULD REPORT A 1992 NET LOSS OF ABOUT 137 MILLION COMPARED WITH THE 234 MILLION NET INCOME THAT IT HAD PREVIOUSLY REPORTED FOR FISCAL 1991 LESLIE FAY'S RESTATED NET INCOME WAS 88 MILLION OR 46 CENTS A SHARE ON SALES OF 8312 MILLION THIS INCLUDED 206 MILLION IN AFTERTAX CHARGES OF WHICH 175 MILLION REFLECTED THE FALSE ACCOUNTING ENTRIES EARLIER THE COMPANY HAD PREDICTED THAT 1991 NET WOULD BE 17 MILLION COMPARED WITH A REPORTED NET OF 294 MILLION ON SALES OF 8366 MILLION IN FISCAL 1990 A YEAR THAT WASN'T EXPECTED TO BE RESTATED THE COMPANY'S NET INCOME WAS 201 MILLION OR 105 A SHARE ON SALES OF 8552 MILLION THESE RESULTS INCLUDE 9 MILLION OF ONETIME CHARGES OF WHICH 31 MILLION REFLECTED THE FALSE ENTRIES LESLIE FAY ORIGINALLY REPORTED 1990 NET OF 291 MILLION ON SALES OF 8588 MILLION THE 1990 RESULTS IN PARTICULAR MAY RAISE QUESTIONS ABOUT 49 MILLION OF LESLIE FAY SHARES THAT WERE SOLD TO THE PUBLIC IN A SECONDARY OFFERING IN JUNE 1991 BY ODYSSEY PARTNERS A LIMITED PARTNERSHIP ODYSSEY'S GENERAL PARTNER STEVEN M FRIEDMAN IS A LESLIE FAY OUTSIDE DIRECTOR AND WAS SO AT THE TIME OF THE OFFERING NEITHER THE COMPANY NOR A SPOKESWOMAN FOR MR FRIEDMAN WOULD COMMENT ON THE MATTER 9309300028 930930 ANDREW MELLON WAS RIGHT FOOLISH BIAS IN TAX CODE BY RAYMOND J KEATING THE SHADOWY MACHINATIONS OF THE 1 TRILLIONPLUS STATE AND LOCAL GOVERNMENT DEBT MARKET HAVE BEEN PUSHED INTO THE LIMELIGHT RECENTLY HEADLINES TRUMPETING INCESTUOUS RELATIONSHIPS BETWEEN ELECTED OFFICIALS AND BOND UNDERWRITERS SPLASH ACROSS NEWSPAPERS AND MAGAZINES IN NEW YORK PITTSBURGH CHICAGO AND MANY OTHER PLACES WHAT'S THE PROBLEM SOME BOND UNDERWRITERS CONTRIBUTE MONEY TO OR RAISE MONEY FOR THE POLITICAL CAMPAIGNS OF ELECTED OFFICIALS WHO CONTROL UNDERWRITING APPOINTMENTS MOREOVER INVESTMENT BANKERS UNDERPRICE NEW GOVERNMENT SECURITIES TO ENSURE THE SALE OF THEIR INVENTORIES SUCH UNDERPRICING COSTS TAXPAYERS MILLIONS OF DOLLARS DUE TO HIGHERTHANNECESSARY YIELDS AT THE HEART OF BOTH THESE PROBLEMS LIES THE FACT THAT BOND DEALS ARE NEGOTIATED RATHER THAN COMPETITIVELY BID WHILE SUCH ABUSES CAN BE CORRECTED LARGELY BY MAKING COMPETITIVE BIDDING THE RULE RATHER THAN THE EXCEPTION THE OVERARCHING ECONOMIC PROBLEM WITH STATE AND LOCAL GOVERNMENT DEBT SEEMS AT TIMES INTRACTABLE ITS TAXEXEMPT STATUS THIS PROBLEM HAS NOT BEEN SERIOUSLY ADDRESSED IN ALMOST 70 YEARS AND WAS EXACERBATED BY THE CLINTON BUDGET THROWING A BONE TO THE BIGCITY MAYORS THE CLINTON INCOMETAX HIKES ENHANCE THE RETURNS ON TAXEXEMPT MUNICIPAL BONDS OR MUNIS RELATIVE TO PRIVATESECTOR INVESTMENTS IN THE EARLY 1920S TREASURY SECRETARY ANDREW MELLON SAW THE INCONGRUITIES OF SUCH A POLICY AND QUESTIONED THE TAXEXEMPT STATUS OF STATE AND LOCAL GOVERNMENT DEBT IN AN APRIL 1921 LETTER TO THE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE HE WROTE THE CONTINUED ISSUE OF TAXEXEMPT SECURITIES ENCOURAGES THE GROWTH OF PUBLIC INDEBTEDNESS AND TENDS TO DIVERT CAPITAL FROM PRODUCTIVE ENTERPRISE IN HIS 1924 BOOK TAXATION THE PEOPLE'S BUSINESS MELLON OBSERVED THAT THE CONTINUED ISSUANCE OF TAXEXEMPT SECURITIES SAVES NOTHING TO THE TAXPAYERS IN THE STATES AND IN THE LONG RUN BRINGS HEAVIER TAXES THE TAXEXEMPT PRIVILEGE WITH THE FACILITY THAT IT GIVES TO BORROWING LEADS IN MANY CASES TO UNNECESSARY OR WASTEFUL PUBLIC EXPENDITURE NEW YORK CITY REMAINS THE MOST PROMINENT FULFILLMENT OF THIS MELLON PROPHECY OVER THE PAST THREE DECADES THE CITY HAS SPENT LIBERALLY PUSHING THE MARGINAL COSTS OF BOTH TAXING AND BORROWING PROHIBITIVELY HIGH THE 1970S FISCAL CRISIS WAS ONE RESULT THE CITY'S CURRENT FISCAL PROBLEMS ARE ANOTHER MELLON URGED A TWOFOLD REFORM AGENDA IN THE EARLY 1920S THE PASSAGE OF A CONSTITUTIONAL AMENDMENT ALLOWING FOR FEDERAL TAXATION OF INTEREST FROM NEW STATE AND LOCAL DEBT ISSUES AND A SHARP REDUCTION IN FEDERAL INCOME TAX RATES HE UNDERSTOOD THE DESTRUCTIVE LINK BETWEEN TAXFREE GOVERNMENT DEBT AND HIGH INCOME TAX RATES UNDER HIGH SURTAX RATES TAXEXEMPT SECURITIES WITHOUT RISK AFFORDED A GREATER NET RETURN THAN PRODUCTIVE BUSINESS WITH RISK COULD PROVIDE AND MEN WITH THE CAPACITY TO PRODUCE FOUND IT MORE REMUNERATIVE TO PRODUCE NOTHING INDEED THE BURDENSOME WORLD WAR I TAX STRUCTURE WITH ITS TOP PERSONAL TAX RATE OF 77 WAS EVENTUALLY REFORMED BY MELLON AND THE TWO PRESIDENTS HE SERVED HARDING AND COOLIDGE WITH THE TOP TAX RATE DROPPING TO 25 BY 1925 BUT THE CONSTITUTIONAL AMENDMENT REGARDING THE TAXATION OF INTEREST DERIVED FROM STATE AND LOCAL BONDS AFTER PASSING THE HOUSE ON JAN 23 1923 FAILED IN THE SENATE THE SAME AMENDMENT FAILED IN THE HOUSE IN FEBRUARY 1924 MELLON CORRECTLY FORESAW MASSIVE INCREASES IN STATE AND LOCAL DEBT FROM JUST UNDER 10 BILLION IN 1920 TO APPROXIMATELY 12 TRILLION TODAY A REAL INCREASE OF MORE THAN 1500 THIS DOES IN FACT REPRESENT A MASSIVE DIVERSION OF CAPITAL FROM PRODUCTIVE ENTERPRISE LOWRISK TAXFREE STATE AND LOCAL DEBT PRESENTS A CONSIDERABLE ATTRACTION FOR INVESTORS AS COMPARED WITH MORE RISKY AND TAXABLE PRIVATESECTOR INVESTMENTS AT THE HIGHEST FEDERAL RATES EXCLUDING STATE AND LOCAL INCOME TAXES DIVIDENDS AND INTEREST FROM PRIVATESECTOR INVESTMENTS ARE TAXED AT 396 AND CAPITAL GAINS AT 28 WHILE INTEREST FROM STATE AND LOCAL DEBT INSTRUMENTS ISN'T TAXED AT ALL IN SUM THE FEDERAL TAX SYSTEM CREATES A CONSIDERABLE BIAS IN FAVOR OF RELATIVELY NONPRODUCTIVE STATE AND LOCAL GOVERNMENTS AND AGAINST PRIVATESECTOR INVESTMENTS THAT CREATE WEALTH JOBS AND ECONOMIC GROWTH THIS IS THE REAL TROUBLE WITH MUNIS WHAT IS TO BE DONE WHILE ENDING THE TAXEXEMPT STATUS OF INTEREST FROM NEW STATE AND LOCAL DEBT ISSUES IS NOT POLITICALLY POSSIBLE OFFSETTING SOME OF THE CURRENT BIAS IN FAVOR OF SUCH INSTRUMENTS MAY BE THAT MEANS ROLLING BACK HIGH INCOME TAX RATES AS MELLON DID IDEALLY IT ALSO MEANS ELIMINATING THE CAPITAL GAINS TAX IF RETURNS FROM GOVERNMENT PROJECTS ARE TAXED AT 0 THEN SURELY CAPITAL GAINS SHOULD BE TAXED AT 0 THE RAMIFICATIONS OF THIS SUPPLYSIDE AGENDA REMAIN STRIKINGLY SIMILAR TO THOSE IDENTIFIED BY MELLON IN 1924 TRUE STATE AND MUNICIPAL EXTRAVAGANCE WILL BE CURTAILED BUT THEIR BONDS WILL SELL ON THEIR MERITS TO THE SAME CLASS OF INVESTORS WHO HERETOFORE FAVORED THEM THE MEN CAPABLE OF BUSINESS SUCCESS WILL GET OUT OF THEIR DEAD INVESTMENTS AND PUT THEIR BRAINS AND MONEY TO WORK THE SPIRIT OF INITIATIVE MAY STILL BE THERE BUT THE PRESENT HIGH SURTAXES ARE DRIVING IT INTO IDLENESS UP TO THIS POINT PRESIDENT CLINTON HAS MOVED IN THE WRONG DIRECTION TOWARD DEADENING AMERICA'S ENTREPRENEURIAL SPIRIT WITH HIGHER TAXES THE THREAT OF HIGHER FUTURE TAXES AND THE RELATIVE EXPANSION OF TAXFREE RETURNS ON STATE AND LOCAL BONDS THE TIME HAS COME ONCE AGAIN TO HEED THE ARGUMENTS OF ANDREW MELLON MR KEATING IS DIRECTOR OF NEW YORK CITIZENS FOR A SOUND ECONOMY 9309300027 930930 DISNEY IS REPORTED READY TO END TIE WITH VIACOM UNIT BY RICHARD TURNER AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO AGREED TO LICENSE MORE THAN 350 OF ITS COMING MOVIES TO LIBERTY MEDIA CORP'S ENCORE PAYTELEVISION UNIT ENDING A LONGTERM RELATIONSHIP WITH VIACOM INC'S SHOWTIME ACCORDING TO PEOPLE CLOSE TO THE SITUATION ALTHOUGH DISCUSSIONS ABOUT DISNEY'S NEW PAYTV CONTRACT BEGAN WELL BEFORE THE CURRENT BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INC THE NEWS CAN'T HELP BUT BE SEEN AGAINST THAT BACKDROP THE TWO MAJOR BIDDERS VIACOM AND QVC NETWORK INC PARTLY OWNED BY LIBERTY EACH SAY THEY WOULD CREATE MORE LONGTERM VALUE THAN THE OTHER BY MERGING WITH PARAMOUNT THESE LONGTERM ISSUES ARE PARTICULARLY IMPORTANT BECAUSE BOTH COMPANIES' OFFERS CONSIST MOSTLY OF STOCK AND DEVELOPMENTS THAT COULD AFFECT THEIR STOCK PRICES COULD LEAD TO FLUCTUATIONS IN THE VALUE OF THEIR BIDS THE LOSS OF DISNEY'S FILMS IS A BLOW TO SHOWTIME WHICH HAS HAD THOSE RIGHTS SINCE THE MID1980S MOREOVER VIACOM ARGUED IN A RECENT LAWSUIT AGAINST TELECOMMUNICATIONS INC LIBERTY ENCORE AND QVC THAT ENCORE WAS BEING USED AS A WEAPON AGAINST SHOWTIME A PRIME VIACOM ASSET ENCORE WOULD ACQUIRE THE RIGHTS TO FILMS FROM DISNEY'S TOUCHSTONE AND HOLLYWOOD PICTURES PRODUCTION UNITS BEGINNING IN 1997 WHEN THE SHOWTIME AGREEMENT EXPIRES AND RUNNING UNTIL 2003 ENCORE WOULD GAIN 10YEAR ACCESS TO FILMS FROM MIRAMAX FILMS WHICH DISNEY RECENTLY ACQUIRED STARTING NEXT YEAR THE WALT DISNEY LABEL WHICH PRODUCED SUCH FILMS AS BEAUTY AND THE BEAST AND ALADDIN SENDS ITS FILMS TO DISNEY'S OWN DISNEY CHANNEL THE VALUE OF THE TRANSACTION TO DISNEY COULD BE WELL MORE THAN 1 BILLION AND PEOPLE CLOSE TO DISNEY SAID ENCORE WAS AN AGGRESSIVE BIDDER TOPPING SHOWTIME'S OFFER THE FILMS WOULD BE SHOWN ON A NEW ENCORE CHANNEL CALLED STARZ WHICH WOULD BE CARRIED MOSTLY BY CABLE SYSTEMS OWNED BY TELECOMMUNICATIONS AFTER YEARS OF PAYTV BEING DOMINATED BY ONLY TWO PLAYERS SHOWTIME AND TIME WARNER INC'S HOME BOX OFFICE ENCORE LAST MAY SNARED THE FIVEYEAR RIGHTS TO MOST OF THE OUTPUT OF MCA'S UNIVERSAL PICTURES MCA IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO SUCH TRANSACTIONS ARE DIFFICULT TO VALUE BECAUSE THEY DEPEND ON HOW WELL THE FILMS PERFORM BUT THAT TRANSACTION WAS ESTIMATED TO BE VALUED AT 350 MILLION TO 500 MILLION 9309300026 930930 MARKETING BRIEF PHILIP MORRIS COS MILLER UNIT ENDS PRODUCTION OF CLEAR BEER AFTER TESTS PHILIP MORRIS COS' MILLER BREWING CO UNIT HAS CEASED PRODUCTION OF ITS MILLER CLEAR BEER AFTER A SHORTLIVED TEST MARKET IT HAD A TREMENDOUS INITIAL TRIAL BUT THE REPEAT BUSINESS WAS NOT AS STRONG SAID A SPOKESMAN FOR THE MILWAUKEEBASED BREWER MILLER HAS BEEN TESTMARKETING THE BEER IN RICHMOND VA MINNEAPOLIS AND AUSTIN TEXAS SINCE APRIL A SPECIAL FILTRATION REMOVED THE COLOR AND SOME OF THE CALORIES AND APPARENTLY MUCH OF THE APPEAL OF THE BEER UNDAUNTED BY THE FLOP OF CLEAR BEER MILLER IS PROCEEDING WITH A TEST OF ICEHOUSE A BEER BREWED WITH A SPECIAL ICE BREWING PROCESS THAT RESULTS IN A SLIGHTLY HIGHER ALCOHOL CONTENT THAN REGULAR BEER 9309300025 930930 BUSINESS BRIEF DART GROUP CORP SHAREHOLDERS FILE LAWSUIT AGAINST TWO IN HAFT FAMILY TWO SHAREHOLDERS OF DART GROUP CORP SUED TWO MEMBERS OF THE HAFT FAMILY ALLEGING THEY MISUSED THEIR CONTROL OF DART AND ITS RETAIL SUBSIDIARIES TO ENRICH THEIR PRIVATE REAL ESTATE INTERESTS THE DERIVATIVE SUIT WAS FILED IN DELAWARE CHANCERY COURT ON BEHALF OF DART BY ALAN R KAHN AND TUDOR TRUST DART CHAIRMAN HERBERT HAFT WHO HAS VOTING CONTROL OF THE LANDOVER MD COMPANY EARLIER REPLACED SON ROBERT AS DART PRESIDENT WITH HIS YOUNGER SON RONALD AND TRANSFERRED MAJORITY OWNERSHIP TO RONALD BY SELLING SHARES AND STOCK OPTIONS THAT SOME ANALYSTS HAVE SAID ARE SHARPLY LOWER THAN THEIR UNDERLYING VALUE THE SUIT SEEKS TO HAVE THE HAFTS ACCOUNT FOR ALLEGED PROFITS TO THE DEFENDANTS AND ALLEGED DAMAGES SUFFERED BY THE COMPANY AS A RESULT OF CERTAIN TRANSACTIONS AND TO RESCIND THE OPTIONS ISSUED TO RONALD AN ATTORNEY FOR RONALD AND HERBERT HAFT SAID HE HAD NOT YET VIEWED THE SUIT BUT ADDED THE REAL ESTATE TRANSACTIONS HAVE BEEN REVIEWED BY OUTSIDE REAL ESTATE EXPERTS AND BY NONHAFT FAMILY DIRECTORS 9309300024 930930 POLITICS & POLICY BROWN FACES ETHICS QUESTIONS ON VIETNAM TIES HOUSE MEMBER MAY CALL FOR SPECIAL PROSECUTOR BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WHICH CAME INTO OFFICE VOWING TO CLEAN UP WASHINGTON NOW HAS A CABINET MEMBER FACING THE SAME KIND OF MESSY ETHICS QUESTIONS THAT DOGGED PREVIOUS ADMINISTRATIONS COMMERCE SECRETARY RONALD BROWN'S APPEARANCE BEFORE A HOUSE SUBCOMMITTEE YESTERDAY WAS SUPPOSED TO FOCUS ON THE FIRST REPORT OF THE ADMINISTRATION'S TRADE PROMOTION COORDINATING COMMITTEE BUT THAT WAS OVERSHADOWED BY QUESTIONS CONCERNING ALLEGATIONS THAT MR BROWN MAY HAVE SOUGHT 700000 TO HELP SECURE FAVORABLE US TRADING POLICIES WITH VIETNAM THE SECRETARY VEHEMENTLY DENIES THE CHARGES BUT FOR THE CLINTON ADMINISTRATION THEY COME AT A PARTICULARLY BAD TIME THREATENING TO DIVERT ATTENTION FROM THE ITEMS ON ITS CROWDED LEGISLATIVE AGENDA INCLUDING THE NORTH AMERICAN FREE TRADE AGREEMENT AN ISSUE ON WHICH MR BROWN HIMSELF HAS BEEN DEEPLY INVOLVED PRIOR TO THE HEARING MR BROWN APPEARED AT THE WHITE HOUSE WITH PRESIDENT CLINTON WHO PRAISED THE SECRETARY AND SAID HIS EFFECTIVENESS WON'T BE UNDERMINED IF HE HASN'T DONE ANYTHING WRONG BUT THAT DIDN'T PREVENT SOME SHARP COMMENTS AT THE HEARING FROM REPUBLICAN REP DANA ROHRABACHER OF CALIFORNIA WHO TOLD THE SECRETARY TO THE OBJECTIONS OF SUBCOMMITTEE DEMOCRATS THAT YOU ARE UNDER A CLOUD OF SUSPICION AND THAT AT STAKE IS YOUR CREDIBILITY AND CONFIDENCE IN THE JOB YOU DO MEANWHILE REP DAN BURTON AN INDIANA REPUBLICAN WHO EARLIER THIS WEEK CALLED FOR A CONGRESSIONAL PROBE OF THE ALLEGATIONS AGAINST MR BROWN SAID AT THE HEARING THAT HE MAY REQUEST THE APPOINTMENT OF A SPECIAL PROSECUTOR TO INVESTIGATE THE CHARGES MR BROWN FOR HIS PART DENIED THE ALLEGATIONS INSISTED THAT THEY WON'T LIMIT HIS EFFECTIVENESS AS MR ROHRABACHER SUGGESTED AND CALLED HIS OWN PERFORMANCE EXEMPLARY AT THE ROOT OF THE FLAP ARE CHARGES BY A FORT LAUDERDALE FLA BUSINESSMAN THAT THE VIETNAMESE GOVERNMENT AGREED TO FUNNEL 700000 TO MR BROWN FOR HIS ASSISTANCE ON DEVELOPMENT PROJECTS THE ALLEGATIONS ARE THE SUBJECT OF AN INVESTIGATION BY A FEDERAL GRAND JURY IN MIAMI BINH LY THE BUSINESSMAN CONCEDES HE HAS NEVER MET MR BROWN AND HAS NO FIRSTHAND KNOWLEDGE OF ANY BUSINESS WITH HIM BUT MR BROWN HAS ADDED FUEL TO THE FIRE WITH APPARENTLY CONFLICTING ACCOUNTS ABOUT HIS CONTACTS WITH VIETNAMESE INVOLVED IN THE MATTER LAST MONTH THE SECRETARY'S OFFICE ISSUED A STATEMENT THAT DECLARED THE SECRETARY CATEGORICALLY AND UNEQUIVOCALLY DENIES HE HAS EVER HAD ANY BUSINESS FINANCIAL OR PROFESSIONAL RELATIONSHIP WITH ANY VIETNAMESE INDIVIDUAL ORGANIZATION OR GROUP OR ANY PERSON CLAIMING TO REPRESENT VIETNAMESE GOVERNMENT OR BUSINESS INTERESTS DURING INTERVIEWS THIS WEEK THOUGH MR BROWN'S LAWYER REID WEINGARTEN SAID MR BROWN HAD MET THREE TIMES WITH NGUYEN VAN HAO WHO HAS BEEN NAMED AS THE CHIEF MIDDLEMAN IN THE ALLEGED EFFORT TO BUY MR BROWN'S HELP IN SECURING FAVORABLE US TRADE POLICIES TOWARD VIETNAM THE FIRST MEETING TOOK PLACE IN A FORT LAUDERDALE RESTAURANT IN NOVEMBER THE SECOND AT THE WASHINGTON DC HOME OF LILLIAN MADSEN A FRIEND OF MR BROWN'S IN DECEMBER AND THE THIRD MEETING WHICH INCLUDED A TOUR OF THE COMMERCE DEPARTMENT BUILDING CAME AFTER MR BROWN TOOK OFFICE IN JANUARY IN AN INTERVIEW MR WEINGARTEN INSISTS THAT ABSOLUTELY NO BUSINESS WAS DISCUSSED DURING THE COMMERCE DEPARTMENT MEETING AND SAYS THERE IS NO DISCREPANCY WITH EARLIER BROWN STATEMENTS IF YOU GO BACK AND PULL APART RON BROWN'S ANSWERS HE SAYS THEY HAVE BEEN CONSISTENT BUT AT YESTERDAY'S HEARING REP ROHRABACHER CHARGED THAT MR BROWN INTENDED TO MISLEAD THE PUBLIC THE CONTROVERSY BEGAN EARLIER THIS YEAR WHEN MR LY STARTED TALKING TO REPORTERS ABOUT THE ALLEGED DEAL BETWEEN MR BROWN AND MR HAO SUPPORTERS OF MR BROWN SAY THE ALLEGATIONS MAY HAVE BEEN SPREAD IN AN ATTEMPT TO THWART ANY LEVEL OF US RECONCILIATION WITH VIETNAM MR LY THOUGH CLAIMS THAT HIS INFORMATION ABOUT THE DISCUSSIONS BETWEEN MR HAO AND MR BROWN COMES FROM MR HAO TODAY MR LY IS SCHEDULED TO MEET WITH GOP MEMBERS OF CONGRESS TO TELL HIS STORY A FEDERAL OFFICIAL SAYS MR LY HAS PASSED A LIE DETECTOR TEST GIVEN HIM BY FEDERAL BUREAU OF INVESTIGATION AGENTS MR LY SAID HE HAS NOT BEEN CALLED TO TESTIFY BEFORE THE GRAND JURY AND HAS NOT TALKED TO THE FBI SINCE APRIL MR LY SAYS HE IS A FORMER BUSINESS PARTNER OF MR HAO IN THE VIETNAM DEVELOPMENT CORP A DEFUNCT FIRM THAT SOUGHT ECONOMIC DEVELOPMENT ASSISTANCE FOR VIETNAM MR LY SAID MR HAO TOLD HIM THAT MR HAO MET WITH MR BROWN IN A FORT LAUDERDALE RESTAURANT IN NOVEMBER AND AGAIN IN DECEMBER AFTER PRESIDENT CLINTON HAD NOMINATED MR BROWN AS COMMERCE SECRETARY MR LY SAYS MR HAO SHOWED OFF MR BROWN'S BUSINESS CARD AFTER THE NOVEMBER MEETING AT THE DECEMBER MEETING ACCORDING TO WHAT MR LY SAID MR HAO RECOUNTED MR BROWN OUTLINED FOR MR HAO SEVERAL AREAS IN WHICH HE WOULD ASSIST VIETNAM FOR A FEE INCLUDING LIFTING THE TRADE EMBARGO AGAINST VIETNAM SECURING FAVORABLE TARIFFS FOR VIETNAMESE IMPORTS AND ARRANGING FINANCING FOR OIL GAS TELECOMMUNICATIONS AND INFRASTRUCTURE PROJECTS IN ADDITION TO THE 700000 THE REQUESTED FEE INCLUDED OIL AND GAS ROYALTIES MR LY SAYS HE SAYS THE VIETNAMESE GOVERNMENT TOLD MR HAO IT WOULD SEND HIM THE 700000 THROUGH BANKS IN HONG KONG AND SINGAPORE AND HE WOULD THEN TRANSFER IT TO MR BROWN THROUGH AN INTERMEDIARY MR LY SAYS HE HAS NO KNOWLEDGE THAT MR BROWN EVER GOT THE MONEY EARLIER THIS YEAR MR LY SAYS HE CARRIED A BRIEFCASE RIGGED BY THE FBI WITH A RECORDING DEVICE AND A TRANSMITTER DURING THREE OR FOUR CONVERSATIONS WITH MR HAO BUT DURING THOSE MR HAO NEVER CONFIRMED HIS ALLEGED DEALINGS WITH MR BROWN THE ONLY THING HE MR HAO SAID ABOUT BROWN WAS I DON'T WANT TO TALK ABOUT BROWN ANY MORE' MR LY SAYS IN AN INTERVIEW MR LY SAYS THAT DURING A DECEMBER TRIP TO VIETNAM HE WROTE A LETTER TO MR BROWN TO BE SIGNED BY VO VAN KIET VIETNAM'S PRIME MINISTER WHICH CONGRATULATED MR BROWN ON PRESIDENT CLINTON'S VICTORY MR BROWN WAS CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE DURING MR CLINTON'S ELECTION CAMPAIGN THE LETTER WAS REVIEWED BY SEVERAL VIETNAMESE OFFICIALS AND WAS INTENDED TO INDICATE THAT BROWN WAS SUPPOSED TO BE THE LOBBYIST FOR VIETNAM MR LY ALLEGES HE SAYS THAT MR HAO WHO WAS ALSO ON THE TRIP TOLD HIM HE DISCUSSED THE PROPOSED RELATIONSHIP BETWEEN MR BROWN AND VIETNAM WITH GOVERNMENT OFFICIALS THERE MR LY SAYS HE ALSO CALLED AND FAXED A LETTER TO MARC ASHTON A FRIEND OF MR BROWN'S FROM HAITI THE LETTER WRITTEN IN FRENCH TOLD MR ASHTON WHO ALLEGEDLY WAS ASSOCIATED WITH MR BROWN IN HIS DEALINGS WITH THE VIETNAMESE THAT THE ARRANGEMENTS CONCERNING THE VIETNAMESE GOVERNMENT WERE GOING WELL AND THAT MR ASHTON SHOULD PREPARE TO MEET WITH MR HAO AND MR BROWN WHEN MR HAO RETURNED TO THE US SECRETARY BROWN'S LAWYER MR WEINGARTEN HAS ACKNOWLEDGED THAT MR ASHTON INTRODUCED MR BROWN TO MR HAO AND ATTENDED SESSIONS DURING WHICH THEY WERE PRESENT MR LY SAYS HE WAS GIVEN HANDWRITTEN NOTES FROM MR HAO INDICATING THE DEALINGS WITH MR BROWN WERE GOING ON AS LATE AS JANUARY OF THIS YEAR MR BROWN WAS NOMINATED AS COMMERCE SECRETARY ON DEC 12 AND CONFIRMED ON JAN 21 9309300022 930930 BUSINESS BRIEF SYNOPTICS COMMUNICATIONS INC COMPANY IS CONSIDERING ACQUISITION OF CORAL NETWORK SYNOPTICS COMMUNICATIONS INC IS IN TALKS TO ACQUIRE CLOSELY HELD CORAL NETWORK CORP WHOSE NETWORKING TECHNOLOGY IS SEEN AS STRATEGICALLY IMPORTANT TO SYNOPTICS INDUSTRY EXECUTIVES SAID SYNOPTICS IS WEIGHING A PRICE OF ABOUT 20 MILLION FOR CORAL WHICH IS EXPECTED TO HAVE ABOUT 10 MILLION IN SALES THIS YEAR A SYNOPTICS INSIDER CONFIRMED THE TALKS BUT WOULDN'T ELABORATE CORAL'S CHIEF FINANCIAL OFFICER DECLINED TO COMMENT NETWORKING HAS BECOME ONE OF THE HOTTEST SECTORS OF THE COMPUTER INDUSTRY AND SYNOPTICS OF SANTA CLARA CALIF IS ONE OF THE LARGEST IN THE BUSINESS BUT THE TECHNOLOGY IS CHANGING FAST AND THE COMPANY APPARENTLY SEES THE CORAL ACQUISITION AS ONE WAY TO KEEP PACE ANALYSTS SAID THE CORAL ACQUISITION COULD HELP FILL A VOID LEFT WHEN SYNOPTICS WHICH MAKES COMPUTER NETWORK HUBS AND CISCO SYSTEMS INC WHICH MAKES ROUTERS RETREATED FROM A JOINT DEVELOPMENT DEAL TO MAKE AN INTEGRATED ROUTERHUB DEVICE FOR THE NETWORK MARKET 9309300021 930930 BUSINESS BRIEF COMPAQ COMPUTER CORP EASTERN EUROPE SUBSIDIARIES ARE PLANNED BY END OF YEAR COMPAQ COMPUTER CORP IN ITS FIRST FORMAL PUSH INTO EASTERN EUROPE SAID IT PLANS TO OPEN SUBSIDIARIES IN HUNGARY AND POLAND BEFORE YEAR END THE HOUSTON PERSONALCOMPUTER MAKER WHICH HAS SOLD ITS MACHINES THROUGH EASTERN EUROPEAN DISTRIBUTORS SINCE 1990 SAID THE NEW OFFICES WILL BE RESPONSIBLE FOR LOCAL SALES MARKETING AND TECHNICAL SUPPORT ANDREAS BARTH A COMPAQ SENIOR VICE PRESIDENT SAID THE NEW UNITS ARE DESIGNED TO TAP INTO ONE OF THE WORLD'S FASTESTGROWING PC REGIONS EVEN AS THE REST OF THE EUROPEAN ECONOMY FALTERS THIS IS A MARKET THAT IS GOING TO BE REALLY REALLY BIG MR BARTH SAID IN AN INTERVIEW IN HUNGARY COMPAQ SAID ITS REVENUE ROSE 120 DURING THE FIRST HALF OF 1993 FROM THE YEAREARLIER PERIOD THE NUMBER OF COMPUTERS SHIPPED DURING THE PERIOD INCREASED 300 COMPAQ SAID MR BARTH SAID HE EXPECTS COMPAQ'S TOTAL EUROPEAN SALES FOR 1993 TO REACH BETWEEN 25 BILLION AND 3 BILLION IN 1992 EUROPE ACCOUNTED FOR 19 BILLION OF COMPAQ'S 41 BILLION IN TOTAL SALES NEWS OF THE EASTERN EUROPEAN UNITS FOLLOWS ANNOUNCEMENTS EARLIER THIS WEEK THAT COMPAQ PLANS SUBSIDIARIES IN PORTUGAL AND CHINA 9309300020 930930 INTERNATIONAL BRIEF MIRROR GROUP NEWSPAPERS PLC MAXWELL'S STAKE IN COMPANY IS PLACED WITH INSTITUTIONS THE LATE ROBERT MAXWELL'S 548 STAKE IN MIRROR GROUP NEWSPAPERS PLC HAS BEEN PLACED WITH UNITED KINGDOM AND INTERNATIONAL INSTITUTIONS AT 170 PENCE 257 A SHARE JOHN TALBOT JOINT ADMINISTRATOR OF ROBERT MAXWELL HOLDINGS LTD AND ROBERT MAXWELL GROUP PLC SAID THE SALE RAISED 373 MILLION 5645 MILLION THE STRENGTH OF INSTITUTIONAL DEMAND FOR MGN SHARES HAS PERMITTED THE SALE OF THE ENTIRE HOLDING IN MGN AT AN ATTRACTIVE PRICE AND WE HAVE COMPLETED THE INTERNATIONAL OFFERING EARLIER THAN ANTICIPATED MR TALBOT SAID ADDING THAT THE SUCCESS OF THE OFFERING IS GOOD NEWS FOR CREDITORS OF ROBERT MAXWELL HOLDINGS AND ROBERT MAXWELL GROUP MGN OWNS SEVERAL BIG PUBLICATIONS INCLUDING THE DAILY MIRROR SUNDAY MIRROR THE PEOPLE AND THE SPORTING LIFE MR MAXWELL DIED MYSTERIOUSLY IN NOVEMBER 1991 AMID INVESTIGATIONS OF MISAPPROPRIATION OF FUNDS 9309300019 930930 MARKETING & MEDIA ADVERTISING CBS STOPS PLAYING HARDBALL TO SELL AIR TIME FOR POSTSEASON BASEBALL BY KEVIN GOLDMAN IT TOOK FOUR YEARS BUT MADISON AVENUE SAYS CBS IS FINALLY PLAYING FAIR IN SELLING TIME ON THE MAJOR LEAGUE BASEBALL PLAYOFFS AND THE WORLD SERIES CBS DECIDED TO LOWER ITS ASKING PRICE FOR THE GAMES THIS YEAR THE NETWORK HAS SOLD OUT ADVERTISING TIME ON BROADCASTS OF THE PLAYOFFS WHICH BEGIN TUESDAY AND HAS SOLD MOST OF THE TIME ON THE WORLD SERIES SCHEDULED TO START OCT 16 IN PREVIOUS YEARS THE NETWORK AGGRESSIVELY ENTERED THE MARKET HOPING TO SIGN ADVERTISERS BY ASKING IN EXCESS OF 300000 FOR A HALFMINUTE SPOT IN THE WORLD SERIES AND ABOUT 200000 FOR THE CHAMPIONSHIPS BUT WITH AUDIENCE RATINGS DECLINING FOR THE CHAMPIONSHIP GAMES AND BASEBALL'S FALL CLASSIC ADVERTISERS BALKED LAST YEAR CBS ULTIMATELY FETCHED AN AVERAGE OF JUST 199700 FOR 30 SECONDS ON THE WORLD SERIES AND AN AVERAGE OF 103800 ON THE PLAYOFFS ACCORDING TO AC NIELSEN SO FAR THIS YEAR ADVERTISING EXECUTIVES SAY CBS'S MORE REASONABLE PRICING POLICY IS ACTUALLY BRINGING IN MORE MONEY THAN LAST YEAR THE NETWORK HAS BEEN COMMANDING ABOUT 240000 FOR A 30SECOND AD IN THIS YEAR'S WORLD SERIES AND APPROXIMATELY 140000 FOR THE BESTOFSEVEN CHAMPIONSHIP SERIES DESPITE THE ROBUST OUTLOOK CBS WILL STILL LOSE MONEY ON BASEBALL MAKE NO MISTAKE ABOUT THAT SAYS JOSEPH D ABRUZZESE SENIOR VICE PRESIDENT OF CBS NETWORK SALES NONETHELESS CBS'S MORE ATTRACTIVE PRICES COUPLED WITH AN UNEXPECTED RESURGENCE IN SPORTS ADVERTISING ARE PROVIDING AN UNUSUALLY UPBEAT ENDING TO ITS OTHERWISE BLEAK 106 BILLION FOURYEAR INVESTMENT IN MAJOR LEAGUE BASEBALL WHICH EXPIRES THIS YEAR THERE IS A WORLD OF DIFFERENCE BETWEEN HOW CBS SOLD THIS YEAR AND LAST YEAR SAYS BILL SHERMAN VICE PRESIDENT OF NATIONAL BROADCAST AT INTERPUBLIC GROUP'S MCCANNERICKSON AND THE HEALTHY SALES ARE NOT FROM NEW SPONSORS COMING IN EITHER THE ESTABLISHED SPONSORS ARE COMING IN WITH SLIGHT INCREASES STEVE AUERBACH EXECUTIVE VICE PRESIDENT OF NATIONAL BROADCASTING AT DEWITT MEDIA A BUYING SERVICE NOTES THAT SPORTS ADVERTISING HAS RECOVERED TO A MODERATE DEGREE BUT I WOULDN'T STRIKE UP THE BAND YET ADVERTISERS SUCH AS ANHEUSERBUSCH GENERAL MOTORS TOYOTA MOTOR PHILIP MORRIS'S MILLER BREWING AND DR PEPPER ARE AMONG THOSE WHO HAVE SIGNED UP FOR THE BASEBALL CONTESTS CBS IS SOLD OUT IN THE FIRST FOUR AMERICAN LEAGUE CHAMPIONSHIP GAMES BETWEEN THE TORONTO BLUE JAYS AND THE CHICAGO WHITE SOX AND THE FIRST FOUR NATIONAL LEAGUE CHAMPIONSHIP GAMES BETWEEN THE PHILADELPHIA PHILLIES IN THE EASTERN DIVISION AND EITHER THE ATLANTA BRAVES OR THE SAN FRANCISCO GIANTS IN THE WESTERN DIVISION THE NETWORK WHICH IS RANKED NO 1 IN HOUSEHOLD RATINGS IN THE 199394 PRIME TIME SEASON THAT BEGAN LAST WEEK IS ALSO BATTING NEARLY A THOUSAND IN THE WORLD SERIES ALTHOUGH IT ISN'T QUITE SOLD OUT MR ABRUZZESE SAYS THE NUMBER OF AVAILABLE SPOTS IS IN THE REASONABLE RANGE FOR INSTANCE THERE ARE SPOTS AVAILABLE IN THE FIRST GAME OF THE SERIES WHICH TAKES PLACE ON A SATURDAY EVENING THE LOWESTRATED NIGHT OF NETWORK TELEVISION UNLIKE LAST YEAR CBS ISN'T GUARANTEEING MANY ADVERTISERS A SPECIFIC AUDIENCE RATING IN EITHER THE CHAMPIONSHIP PLAYOFFS OR THE WORLD SERIES HOWEVER THE NETWORK DID MAKE A GUARANTEE TO A FEW ADVERTISERS WHO BOUGHT A LARGE BLOCK OF TIME IN ADVANCE SUCH AS GM AND TOYOTA CBS DECLINED TO SAY HOW MANY VIEWERS IT GUARANTEED THEM THIS YEAR AUDIENCE GUARANTEES ON BASEBALL ARE RISKY BECAUSE OF FALLING RATINGS AND THE GUARANTEES CAN MEAN MILLIONS OF DOLLARS IN FREE ADVERTISING TIME TO COMPENSATE SPONSORS FOR ANY SHORTFALL LAST YEAR'S SIXGAME WORLD SERIES BETWEEN TORONTO AND ATLANTA IN WHICH TORONTO WON WAS WATCHED BY 202 OF US HOMES WITH TELEVISION SETS ACCORDING TO NIELSEN REPRESENTING A 16 DROP FROM THE PREVIOUS YEAR THE LEAGUE CHAMPIONSHIP FARED NO BETTER WITH THE NATIONAL LEAGUE CONTEST WATCHED BY 82 OF HOMES WITH TV SETS AND THE AMERICAN LEAGUE SERIES WATCHED BY A PALTRY 51 A DROP OF 41 AND 45 RESPECTIVELY FROM THE YEAR BEFORE AS A RESULT CBS HAD TO GIVE AN UNDISCLOSED AMOUNT OF FREE ADVERTISING TO SPONSORS BECAUSE OF THE AUDIENCE SHORTFALL CERTAINLY CBS WON'T BE SORRY TO SEE BASEBALL GO CBS CHAIRMAN LAURENCE A TISCH PAID THE SKYHIGH PRICE FOR THE SPORT WHEN THE NETWORK NEEDING MARQUEE EVENTS COULDN'T CLIMB OUT OF THIRD PLACE BUT CBS SHOT TO THE TOP OF THE HOUSEHOLD RATINGS IN THE 199192 SEASON DESPITE BASEBALL NOT BECAUSE OF IT NOW DURING THE PLAYOFFS AND WORLD SERIES CBS PROGRAMMING EXECUTIVES HAVE TO GRIT THEIR TEETH AS NONBASEBALL VIEWERS AND THERE ARE TENS OF MILLIONS OF THOSE JUDGING BY THE NIELSEN RATINGS SAMPLE NEW PRIME TIME SERIES ON RIVAL NETWORKS LUCKILY FOR CBS BASEBALL WON'T BE PLAYED MONDAY EVENINGS ONE OF CBS'S MOST POPULAR NIGHTS THAT INCLUDE MURPHY BROWN AND NORTHERN EXPOSURE THAT'S BECAUSE MAJOR LEAGUE BASEBALL DOESN'T WANT TO COMPETE WITH THE FORMIDABLE MONDAY NIGHT FOOTBALL ON ABC UNLIKE OTHER MAJOR EVENTS SUCH AS THE NATIONAL FOOTBALL LEAGUE'S SUPER BOWL THE WORLD SERIES DOESN'T TEND TO INSPIRE BREAKTHROUGH ADS EVEN SO THERE WILL BE SOME NEW NAMES AND BRANDS ON THE BASEBALL TELECASTS CBS SAYS INCLUDING NEWCOMER ROLLING ROCK FROM LATROBE BREWING AND THE ICE BEER BRANDS FROM MILLER AND ANHEUSERBUSCH AN ADVISORY FOR THOSE TUNING IN CBS AS USUAL WILL USE THE BASEBALL GAMES TO HEAVILY PROMOTE NEW SERIESPRIMARILY SOUTH OF SUNSET A LIGHTHEARTED BUDDY DETECTIVE SHOW WITH FORMER EAGLES BAND MEMBER GLEN FREY AND PICKET FENCES A MUCH ACCLAIMED BUT SELDOM WATCHED OFFBEAT DRAMA CBS WILL ALSO PROMOTE ITS SLATE OF SPECIALS AIRING IN NOVEMBER ONE OF THE FOUR CRUCIAL MONTHS WHEN LOCAL STATIONS' ADVERTISING RATES ARE DETERMINED BY AUDIENCE RATINGS SUCH EXPOSURE RARELY WORKS HOWEVER LAST YEAR CBS HEAVILY PROMOTED AN ACTION SERIES THE HAT SQUAD IT BOMBED WHO'S NEWS TWO TOP MEDIA EXECUTIVES AT YOUNG & RUBICAM NEW YORK ARE LEAVING THE AGENCY TO OPEN THEIR OWN MEDIA BUYING SERVICE IDM INTERNATIONAL PAUL ISACSSON WAS EXECUTIVE VICE PRESIDENT AND MEDIA DIRECTOR OF THE AGENCY'S BIG NEW YORK MEDIA OPERATIONS GERRI DONINI EXECUTIVE VICE PRESIDENT OVERSAW BUYING OF NATIONAL TELEVISION THE AGENCY SAID IT IS IN TALKS WITH POSSIBLE SUCCESSORS 9309300018 930930 BUSINESS BRIEF AGNICOEAGLE MINES LTD FIRM CONSIDERS SHARE SWAP TO ACQUIRE 100 OF GOLDEX AGNICOEAGLE MINES LTD AND A 56OWNED SUBSIDIARY GOLDEX MINES LTD SAID THEY WERE DISCUSSING THE POSSIBLE ACQUISITION OF THE REST OF GOLDEX IN EXCHANGE FOR AGNICOEAGLE SHARES THE COMPANIES SAID THE SHAREEXCHANGE RATIO HASN'T BEEN DETERMINED THE 57 MILLION GOLDEX SHARES THAT THE PARENT DOESN'T OWN HAVE A MARKET VALUE OF ABOUT 235 MILLION IN LATE OVERTHECOUNTER TRADING YESTERDAY GOLDEX SHARES WERE QUOTED AT 4125 UP 25 CENTS OR 65 AND AGNICOEAGLE SHARES WERE QUOTED AT 1150 UNCHANGED GOLDEX OWNS A GOLD MINE THAT ISN'T PRODUCING PAUL PENNA PRESIDENT OF BOTH TORONTO MINING COMPANIES SAID HE BELIEVED IT WOULD BE EASIER FOR THE PARENT RATHER THAN GOLDEX TO RAISE MONEY FOR DEVELOPING THE MINE 9309300017 930930 BUSINESS BRIEF MORNINGSTAR INC MUTUAL FUND DATA PUBLISHER TO COVER CANADIAN INDUSTRY MORNINGSTAR INC THE CHICAGO PUBLISHER OF INFORMATION ON US MUTUAL FUNDS PLANS TO EXTEND ITS COVERAGE TO INCLUDE CANADA'S BOOMING FUND INDUSTRY JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS THE COMPANY'S FLAGSHIP PRODUCT SAID IT WILL TAKE THE COMPANY AT LEAST A YEAR TO COLLECT DATA ON THE CANADIAN INDUSTRY CANADA HAS 74 PRINCIPAL MONEY MANAGERS SPONSORING SOME 600 SEPARATE MUTUAL FUNDS MR REKENTHALER EXPECTS INFORMATION AND ANALYSIS OF THE CANADIAN FUNDS WILL BE AVAILABLE TO SUBSCRIBERS EITHER IN LOOSELEAF OR COMPUTER DATABASE FORM SIMILAR TO THE COMPANY'S US PRODUCTS CANADA WAS SLOWER THAN THE US TO GET ON THE MUTUAL FUND BANDWAGON MORE RECENTLY HOWEVER THE CANADIAN INDUSTRY HAS BEEN PLAYING CATCH UP MUTUAL FUND ASSETS ROSE 42 TO NEARLY 100 BILLION CANADIAN DOLLARS US756 BILLION IN THE YEAR ENDED AUG 31 THE INDUSTRY HAS MORE THAN TRIPLED IN SIZE SINCE THE END OF 1990 9309300016 930930 BUSINESS BRIEF FOODMAKER INC JACK IN THE BOX SALES EXPECTED TO BE OFF FROM YEAR EARLIER FOODMAKER INC SAID IT EXPECTS FOURTHQUARTER COMPARABLESTORE SALES AVERAGES AT ITS JACK IN THE BOX RESTAURANTS TO BE 85 TO 9 BELOW YEAREARLIER LEVELS REFLECTING EFFECTS OF AN OUTBREAK OF FOODBORNE ILLNESS AT SOME PACIFIC NORTHWEST OUTLETS EARLY THIS YEAR AS WELL AS A SOFT ECONOMY THE AVERAGE WEEKLY SALES VOLUME AT THE FASTFOOD RESTAURANTS IS EXPECTED TO BE ABOUT 18500 FOR THE FOURTH QUARTER ENDING OCT 3 COMPARED WITH 18066 FOR THE THIRD QUARTER 15120 FOR THE SECOND QUARTER AND 20520 FOR THE FIRST QUARTER THE RESTAURANTMANAGEMENT COMPANY SAID QUARTERLY COMPARABLESTORE SALES FOR ITS CHICHI'S MEXICAN RESTAURANTS ARE EXPECTED TO FALL 55 TO 6 FROM A YEAR EARLIER FOODMAKER SHARES CLOSED AT 10 OFF 50 CENTS OR 48 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9309300015 930930 CREDIT MARKETS TREASURY SECURITIES DROP SHARPLY AS INCREASE IN OIL PRICES RAISES CONCERNS ABOUT INFLATION BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RISING OIL PRICES SPECULATION ABOUT STRONGER ECONOMIC GROWTH AND SELLING BY WALL STREET FIRMS ALL HELPED TO SEND THE PRICES OF TREASURY SECURITIES SHARPLY LOWER THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 7/8 POINT OR NEARLY 875 FOR A BOND WITH 1000 FACE VALUE TO 103 13/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 599 FROM 594 ON TUESDAY THE 10YEAR NOTE DROPPED MORE THAN 1/2 POINT TO 102 30/32 TO YIELD 535 UP FROM 528 WEDNESDAY'S ACTIVITY WAS DOMINATED BY SELLERS SOMETHING WE HAVEN'T SEEN LATELY MARKET ANALYST JACK MCINTYRE NOTED IN A DAILY COMMENTARY FROM TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES THE RISE PROBABLY STEMS FROM CRUDE OIL BEING UP SHARPLY ON THE DAY HE SAID BOND INVESTORS OFTEN INTERPRET RISING OIL PRICES AS A SIGN OF INFLATION THEY FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN CRUDEOIL FUTURES PRICES SURGED AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ANNOUNCED AN AGREEMENT ON PRODUCTION LIMITS FOR THE NEXT SIX MONTHS DECEMBER CRUDE OIL FUTURES CONTRACTS SETTLED AT 1880 A BARREL AT THE NEW YORK MERCANTILE EXCHANGE UP 65 CENTS CONTRIBUTING TO THE SELLOFF WAS SPECULATION THAT THE AUGUST HELPWANTED ADVERTISING INDEX PRODUCED BY THE CONFERENCE BOARD HAD POSTED A STRONG GAIN THE HELPWANTED INDEX WAS OFFICIALLY UNDER WRAPS UNTIL 6 PM EASTERN TIME YESTERDAY BUT GOVERNMENT SECURITIES TRADERS SAID THE RESULTS WERE COMMON KNOWLEDGE IN THE MARKET BY MIDMORNING WHILE THE INDEX ISN'T USUALLY WATCHED CLOSELY BY THE TREASURY MARKET THERE HAS BEEN A LACK OF NEW ECONOMIC DATA IN RECENT DAYS AND STRONGER HIRING PROSPECTS WERE TAKEN AS A NEGATIVE INDICATOR FOR THE BOND MARKETS IF COMPANIES ARE PLACING MORE WANT ADS THE LOGIC GOES THEN PERHAPS THE ECONOMY IS BEGINNING TO GAIN MORE STRENGTH BOND INVESTORS FEAR THAT GREATER ECONOMIC STRENGTH COULD MEAN HIGHER INTEREST RATES THERE'S NO DOUBT THAT THE MARKET LOST ITS STARCH IN REACTION TO THE CONFERENCE BOARD RUMOR AND THEN MOVED INTO KEY RESISTANCE AREAS SAID WILLIAM SULLIVAN SENIOR VICE PRESIDENT AND DIRECTOR OF RESEARCH AT DEAN WITTER REYNOLDS INC THE INDEX SHOWED THAT HELPWANTED ADVERTISING CONTINUES TO GROW MODERATELY THE INDEX ROSE TO A SEASONALLY ADJUSTED 104 IN AUGUST FROM 100 IN JULY UP 11 POINTS FROM A YEAR EARLIER FOR SOME INVESTORS THE ATTENTION TO THE INDEX SEEMED OVERDONE BECAUSE IT HAS NOT BEEN A MARKETMOVING NUMBER OF LATE BUT FOR OTHERS SUCH AS WILLIAM GROSS A MONEY MANAGER AT PACIFIC INVESTMENT MANAGEMENT CO OF NEWPORT BEACH CALIF IT'S VERY IMPORTANT IT HAS BEEN A VERY USEFUL INDICATOR IN THE PAST TO DEMONSTRATE TURNS IN THE ECONOMY SAID MR GROSS A FOURPOINT MOVE IS A PRETTY NICE JUMP HE SAID AND MAY GIVE PAUSE TO BOND INVESTORS MR GROSS HIMSELF WAS THE SUBJECT OF MARKETMOVING RUMORS YESTERDAY ACCORDING TO THE SPECULATION HE SOLD 1 BILLION OF 10YEAR NOTES AGAINST A SIZABLE 30YEAR BOND FUTURES CONTRACT THAT WILL BE DELIVERED TODAY A FUTURES CONTRACT IS AN AGREEMENT TO BUY OR SELL A SET AMOUNT OF SECURITIES AT A SET PRICE AT A CERTAIN DATE IN THE FUTURE MR GROSS DENIED SELLING THE 10YEAR NOTES BUT WOULD NOT COMMENT ON THE RUMOR ABOUT THE FUTURES CONTRACT ANOTHER FACTOR CONTRIBUTING TO THE DROP IN PRICES ACCORDING TO MR GROSS WAS SELLING BY WALL STREET DEALERS LOOKING TO LOCK IN PROFITS BEFORE THE END OF THE QUARTER TODAY SOME MARKET ANALYSTS ARGUED YESTERDAY THAT MONEY MANGERS MAY HAVE BEEN DOING MOST OF THE SELLING IN ORDER TO BOOK RETURNS IN TIME FOR THEIR QUARTERLY REPORTS TO CLIENTS BUT MR GROSS SAID THAT DIDN'T MAKE SENSE THEY'D ALL HAVE TO BE BACK IN THE MARKET TWO DAYS LATER SELLING BY WALL STREET DEALERS HOWEVER WAS MUCH MORE LIKELY HE SAID A NUMBER OF WALL STREET FIRMS END THEIR FISCAL YEARS NEAR THE END OF THE THIRD QUARTER AND BOND TRADERS LOOKING FOR BIG YEAREND BONUSES WANT TO LOCK IN THEIR PROFITS NOW HE SAID THAT MAY HAVE LED TO MUCH OF YESTERDAY'S SELLING THERE WERE RUMORS THAT TWO INVESTMENT BANKS WERE LARGE SELLERS OF FIVEYEAR AND 10YEAR TREASURY NOTES TRADERS ALSO CITED MARKET TREPIDATION ABOUT COMING ECONOMIC NUMBERS THAT MAY SHOW STRONGERTHANANTICIPATED ECONOMIC GROWTH THE CHICAGO PURCHASING MANAGERS' SURVEY IS TO BE RELEASED TODAY ALONG WITH DATA ON AUGUST NEWHOME SALES AND PERSONAL INCOME TOMORROW THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S SEPTEMBER SURVEY IS SCHEDULED FOR RELEASE AS WELL AS LEADING ECONOMIC INDICATORS AND FACTORY ORDERS FOR AUGUST FEW CORPORATIONS SOLD NEW SECURITIES YESTERDAY JUST 500 MILLION OF NEW NOTES AND BONDS WERE PRICED AMONG THE INVESTMENTGRADE ISSUERS WERE POTOMAC ELECTRIC POWER CO AND PROGRESSIVE CORP THERE ALSO WAS A JUNK BOND OFFERING BY OSI SPECIALTIES INC TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH THE SECTOR FOLLOWING TREASURYS LOWER YIELD SPREADS WERE SLIGHTLY NARROWER JUNKBOND TRADING WAS MODERATE WITH MOST PRICES UNCHANGED AN EXCEPTION WAS NATIONAL MEDICAL ENTERPRISES THE PRICE OF ITS 12 1/8 COUPON NOTES MATURING IN 1995 ROSE ONE POINT OR 10 FOR A BOND WITH 1000 FACE VALUE TO 104 THE YIELD DROPPED TO 937 FROM 1004 BEHIND THE SURGE WAS AN ANNOUNCEMENT THAT THE COMPANY AGREED IN PRINCIPLE TO SETTLE TWO OF THREE LAWSUITS WITH INSURANCE COMPANIES OSI A SPECIALTY CHEMICAL COMPANY SOLD 125 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES AT PAR TO YIELD 925 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP PART OF THE PROCEEDS WILL BE USED TO PAY DOWN A 75 MILLION BRIDGE LOAN OWED TO DONALDSON LUFKIN & JENRETTE SECURITIES INC DONALDSON ALSO WAS LEAD MANAGER OF THE BOND OFFERING IN THE SECONDARY MARKET THE PRICE OF THE BONDS ROSE A POINT TO YIELD 91 MUNICIPAL BONDS WERE CAUGHT UP IN THE SAME SPURT OF SALES THAT HIT TREASURYS AND CLOSED 1/8 TO 3/8 LOWER AMONG ACTIVELY TRADED MUNIS THE DALLAS/FORT WORTH INTERNATIONAL AIRPORT FACILITIES IMPROVEMENT CORP'S 625 REFUNDING BONDS DUE 2013 FINISHED 1/4 WEAKER AT 99 1/2 YIELDING 623 THE FLORIDA MUNICIPAL POWER AGENCY'S 450 REFUNDING REVENUE BONDS DUE 2027 CLOSED 3/8 LOWER AT 88 3/8 YIELDING 523 WHILE THE LOSSES IN THE US BOND MARKETS THIS SESSION WERE PARTLY ATTRIBUTED TO RUMORS THAT THE CONFERENCE BOARD'S AUGUST HELPWANTED ADVERTISING INDEX HAD IMPROVED SOME MUNI SPECIALISTS SAY THE MARKET HAS A TENDENCY TO STUMBLE BECAUSE IT RECENTLY CLIMBED TOO FAR TOO FAST WITH MUNIS ANY SUBSTANTIAL PRICE INCREASES WILL PROBABLY BE VIEWED AS PROFITTAKING OPPORTUNITIES FOR A WHILE MORTGAGE SECURITIES TOOK CUES FROM TREASURYS YESTERDAY AND LOST GROUND ALTHOUGH NOT AS MUCH AS INTERMEDIATE GOVERNMENT SECURITIES RISING RATES WERE EXPECTED TO HELP THE MORTGAGE MARKET OUTPERFORM TREASURYS BUT FEW ARE YET WILLING TO BET THAT THE RATE INCREASE SIGNALS A SUSTAINED TREND CURRENTCOUPON MORTGAGE SECURITIES 6 ISSUES FOR OCTOBER DELIVERY ALL DROPPED 10/32 ON THE DAY GINNIE MAES TRADED AT 99 7/32 FREDDIE MAC GOLDS WERE QUOTED AT 98 22/32 AND FANNIE MAES CHANGED HANDS AT 98 19/32 THE MORTGAGE MARKET IS ALSO CURRENTLY LACKING SUPPORT FROM CREATORS OF REAL ESTATE MORTGAGE INVESTMENT CONDUITS WHO WOULD TYPICALLY PURCHASE MORTGAGE SECURITIES AS COLLATERAL FOR THEIR NEW DEALS DESPITE QUARTEREND FACTORS SUCH AS SCRAMBLING BY UNDERWRITERS TO MOVE AHEAD ON INDUSTRY VOLUME RANKINGS A RELATIVELY FLAT YIELD CURVE IS KEEPING REMIC MAKERS ON THE SIDELINES FOR THE MOST PART NEW ISSUANCE WHICH WAS MORE ACTIVE THAN EARLIER THIS WEEK WAS LIMITED TO TWO NEW DEALS TOTALING 11 BILLION AND THE INCREASE OF TWO DEALS OUTSTANDING FOR AN ADDED 360 MILLION HIGHCOUPON MORTGAGE SECURITIES OUTPACED LOWERCOUPON ISSUES AS SOME PLAYERS BASED TRADES ON EXPECTATIONS THAT PREPAYMENTS ON SOME HIGHCOUPON ISSUES HAVE ABOUT REACHED PEAK SPEEDS GREGORY L WHITE IN MOSCOW AND JOHN HUGHES CONTRIBUTED TO THIS COLUMN 9309300014 930930 BUSINESS BRIEF PINKERTON'S INC SECURITYSERVICES FIRM SAYS RESULTS TRAILED EXPECTATIONS PINKERTON'S INC SAID IT EXPECTS TO REPORT EARNINGS FOR THE FISCAL THIRD QUARTER ENDED SEPT 3 WERE AT OR NEAR BREAK EVEN LOWER THAN ANALYSTS' EXPECTATIONS IN THE YEAREARLIER QUARTER THE VAN NUYS CALIF SECURITYSERVICES COMPANY HAD NET INCOME OF 11 MILLION OR 13 CENTS A SHARE AFTER A 25 MILLION RESTRUCTURING CHARGE ON REVENUE OF 1638 MILLION IN NATIONAL OVERTHECOUNTER TRADING PINKERTON'S FELL 2 OR 11 TO 17 PINKERTON'S BLAMED THE LOWERTHANEXPECTED EARNINGS ESTIMATE ON STARTUP COSTS ASSOCIATED WITH SERVICING ITS LARGEST NEW SECURITY CLIENT GENERAL MOTORS CORP AND CHARGES FROM A MANAGEMENT RESTRUCTURING CONSOLIDATIONS AND AN INVENTORY WRITEDOWN PINKERTON'S SAID IT WILL REPORT THE EARNINGS ABOUT OCT 7 9309300013 930930 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG WHEN ASKED IN SURVEYS WHAT TYPES OF SOFTWARE PROGRAMS THEY USE FREQUENTLY COMPUTER USERS TYPICALLY LIST SOBER STUFF LIKE WORD PROCESSORS OR MAYBE SPREADSHEETS WELL I DON'T BUY IT I THINK A LOT OF FOLKS SPEND A LOT OF TIME PLAYING GAMES ON THEIR PCS BUT JUST DON'T WANT TO ADMIT IT AND OF COURSE THAT GOES DOUBLE FOR KIDS THEY MAY DO THEIR HOMEWORK ON THE MACHINES BUT THE KIDS I KNOW SPEND A HECK OF LOT MORE TIME ON GAMES THAN ON THAT ELECTRONIC ENCYCLOPEDIA THAT HELPED THEIR PARENTS RATIONALIZE THE PURCHASE OF THE COMPUTER THE TROUBLE IS LOTS OF GAMES ARE PRETTY MONOTONOUS AND/OR VIOLENT AN ENDLESS SERIES OF SIMILAR SCREENS IN WHICH SOME CHARACTER YOU CONTROL GOES AROUND KILLING FOES IT'S TOUGH TO FIND MORE CHALLENGING AND CREATIVE PRODUCTS SO HERE'S A RUNDOWN ON FOUR OF THE MOST INTERESTING COMPUTER GAMES FOR KIDS AND ADULTS THAT HAVE CROSSED MY DESK LATELY PRODUCTS THAT AREN'T BASED ON SIMULATED SLAYINGS AND SHOW CONSIDERABLE CREATIVITY I'VE BEEN PLAYING THESE LATELY PURELY FOR JOURNALISTIC PURPOSES WITH THE HELP OF MY GAMESAVVY TEENAGE SON WHO RUNS RINGS AROUND ME IN THIS CATEGORY EACH IS OF HIGH QUALITY IN OUR VIEW THEY WON'T BORE YOU FOR LITTLE TYKES AGES FOUR TO EIGHT I LIKE A BRANDNEW ENTRY FROM EDMARK CORP OF REDMOND WASH CALLED THINKIN' THINGS AVAILABLE NOW FOR IBMCOMPATIBLES AND SOON FOR MACINTOSH COMPUTERS AS WELL THIS IS A COLLECTION OF SIX DIFFERENT ACTIVITIES DESIGNED TO ENTERTAIN THE KIDS WHILE DEVELOPING KEY EDUCATIONAL SKILLS SUCH AS MEMORY PATTERN RECOGNITION AND DRAWING ANALOGIES SOME OF THE MODULES SHOW COLORFUL SERIES OF ODD CREATURES AND PATTERNS AND THEN ASK THE PLAYER TO REPEAT OR EXTEND THEM OTHERS CREATE MUSICAL TUNES KIDS TRY TO RECREATE STILL OTHERS LET KIDS CREATE THREEDIMENSIONAL ANIMATIONS BUILT OUT OF SPHERES AND OTHER SIMPLE SHAPES WITH ACCOMPANYING MUSIC WARNING THIS PROGRAM IS SO NEW IT MAY BE TOUGH TO FIND SLIGHTLY OLDER KIDS AGES SEVEN AND UP WILL HAVE A GREAT TIME WITH KID CAD A PROGRAM FROM DAVIDSON & ASSOCIATES TORRANCE CALIF THAT RUNS ON IBMCOMPATIBLES UNDER MICROSOFT'S WINDOWS SOFTWARE IN COMPUTER LINGO CAD MEANS COMPUTER AIDED DESIGN AND USUALLY REFERS TO COSTLY COMPLEX SOFTWARE THAT LETS ARCHITECTS AND ENGINEERS RENDER BUILDING PLANS ACCURATELY ON A SCREEN KID CAD PUTS SOME OF THAT POWER IN THE HANDS OF CHILDREN LETTING THEM CREATE ELABORATE THREEDIMENSIONAL BUILDINGS IN AN URBAN FARM OR SMALLTOWN SETTING THERE ARE SIMPLE CONTROLS FOR ADDING A WIDE VARIETY OF FEATURES RANGING FROM FOUNDATIONS WALL AND ROOF COMPONENTS TO FURNITURE PEOPLE PAINT AND DECORATIVE PATTERNS EACH ACCOMPANIED BY SOUND EFFECTS KID CAD IS BASICALLY THE ELECTRONIC EQUIVALENT OF TINKERTOYS OR LEGOS OBVIOUSLY THERE ARE ADVANTAGES IN SUCH HANDSON BUILDING TOYS THAT A COMPUTER SIMULATION CAN'T MATCH BUT IF YOU'VE EVER STEPPED ON YOUR KID'S LEGOS WHILE WALKING BAREFOOT IN THE DARK YOU MIGHT PREFER KID CAD THE PROGRAM ALSO DOES THINGS REAL BUILDING BLOCKS CAN'T YOU CAN ZOOM AND SCROLL THROUGH THE DESIGNS LINK COMPONENTS PRINT OUT PICTURES OF THEM EVEN DEMOLISH THE STRUCTURES IN VARIOUS ENTERTAINING WAYS FOR GROWNUPS THE MOST FASCINATING NEW GAME I'VE SEEN IS CALLED MYST IT'S SOLD BY BRODERBUND OF NOVATO CALIF BUT WAS CREATED BY A SMALL OUTFIT CALLED CYAN INC WHICH PREVIOUSLY MADE SUCH DELIGHTFUL NONVIOLENT GAMES AS COSMIC OSMO IN MYST WHICH REQUIRES A MAC WITH A CDROM PLAYER YOU WANDER THROUGH FANTASY WORLDS ATTEMPTING TO SOLVE A MYSTERY WHOSE VERY DIMENSIONS ARE UNCLEAR AT FIRST YOUR WEAPON IS INGENUITY NOT A RAY GUN YOU DON'T HAVE TO KILL ANYONE AND YOU DON'T DIE REPEATEDLY YET IT'S ANYTHING BUT BORING FROM THE OPENING CREDITS IT'S CLEAR THAT MYST SETS A NEW STANDARD FOR THE VISUAL AND AUDIO QUALITY OF GAMES IT'S MORE LIKE A RICHLY ANIMATED AND SCORED MOTION PICTURE THAN A TYPICAL COMPUTER GAME THERE ARE THOUSANDS OF BEAUTIFUL IMAGES OVER AN HOUR OF ANIMATION AND VIDEO CLIPS AND A VERY PLEASING SOUND TRACK THAT'S NOTHING LIKE THE TINNY TUNES ON GAME MACHINES YOU MOVE THROUGH THE FANTASY WORLD BY JUST CLICKING THE MOUSE NO COMMANDS NEED BE MEMORIZED AT EVERY TURN YOU MUST SOLVE CLEVER PUZZLES AND INTERPRET SOPHISTICATED CLUES THE WHOLE THING IS NONLINEAR YOU CAN TRACE YOUR OWN PATH THROUGH IT SOLVING THE PUZZLES IN ANY ORDER MYST IS AN ABSORBING EXPERIENCE THAT LASTS MANY HOURS BUT IT'S ALSO SO NEW IT MAY BE HARD TO FIND IN STORES A LESS FANTASTIC BUT ALSO IMPRESSIVE GAME FOR ADULTS IS WHO KILLED SAM RUPERT BY CREATIVE MULTIMEDIA CORP PORTLAND ORE THIS ONE ALSO COMES ON A CDROM FOR BOTH PCS AND MACS AND RELIES HEAVILY ON VIDEOS AND AUDIO THIS GAME IS LIKE AN INTERACTIVE VERSION OF THE OLD TV SHOW DRAGNET YOU'RE GIVEN SIX HOURS TO SOLVE THE MURDER OF RUPERT WHO WAS FOUND DEAD IN THE WINE CELLAR OF HIS RESTAURANT BUT UNLIKE EARLIER MYSTERY GAMES THIS ONE USES ACTUAL PHOTOS AND VIDEOS OF ACTORS TO PROVIDE A REALISTIC FEEL TO THE WHOLE PROCESS YOU CAN ZOOM IN ON VARIOUS PARTS OF THE CRIME SCENE PHOTO TO READ A WINE LABEL OR CHECK FOR FINGERPRINTS OR DO OTHER FORENSIC TESTS YOU CAN PLAY MOVIES OF THE INTERROGATIONS OF PRIME SUSPECTS AND TRY TO EVALUATE THEM FROM THEIR EXPRESSIONS AND TONES OF VOICE AS WELL AS THEIR WORDS THERE'S EVEN A PRESS CONFERENCE BUILT IN I ENJOYED THE WHOLE EXPERIENCE THOROUGHLY SO DON'T BE ASHAMED TO PLAY GAMES ON YOUR COMPUTER BUT STOP LYING ON THOSE SURVEYS OK 9309300012 930930 WHO'S NEWS WAREHOUSE CLUB INC WAREHOUSE CLUB INC SKOKIE ILL RONALD R VANDEVELDE FORMERLY DIVISIONAL VICE PRESIDENT SALESFURNITURE OF SEARS ROEBUCK & CO WAS NAMED VICE PRESIDENT OPERATIONS OF THIS OPERATOR OF WAREHOUSE STORES HE SUCCEEDS GENE HISLOP WHO RESIGNED FOR PERSONAL REASONS 9309300011 930930 INTERNATIONAL LABOR PARTY IN BRITAIN CUTS UNION POWER BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL BRIGHTON ENGLAND IN A VOTE THAT COULD IMPROVE THE LABOR PARTY'S CHANCES IN THE NEXT NATIONAL ELECTION DELEGATES TO ITS CONFERENCE HERE APPROVED AN AMENDMENT TO THEIR CONSTITUTION DIMINISHING THE VOTING POWER OF TRADE UNIONS ALTHOUGH A DAYLONG DEBATE CENTERED ON SUCH ISSUES AS PARTY TRADITION AND PRINCIPLE LEADER JOHN SMITH TOOK THE PODIUM AND ASSERTED THAT SOMETHING LARGER WAS AT STAKE THE LABOR PARTY'S PERFORMANCE IN THE NEXT ELECTION WHICH MUST BE HELD BY 1997 POLITICAL OBSERVERS SAY PART OF THE REASON LABOR HAS BEEN KEPT OUT OF POWER IN BRITAIN FOR MORE THAN A DECADE IS VOTER PERCEPTION THAT THE PARTY IS CONTROLLED BY TRADE UNION BOSSES DESPITE FIERCE OPPOSITION FROM NUMEROUS UNION LEADERS MR SMITH PERSUADED JUST ENOUGH OF THE THOUSANDS GATHERED HERE TO APPROVE HIS SOCALLED ONEMEMBER ONEVOTE PROPOSAL IN PARTY ELECTIONS TO CHOOSE PARLIAMENTARY CANDIDATES THE PROPOSAL SHIFTS CONTROL OF A LARGE BLOCK OF VOTES TO INDIVIDUALS FROM UNION OFFICIALS MR SMITH'S PROPOSAL WILL END THE PRACTICE OF UNION LEADERS CONTROLLING AS MUCH AS 40 OF THE VOTE IN ELECTIONS TO CHOOSE LABOR PARLIAMENTARY CANDIDATES IN MANY CASES UNION LEADERS HAVE DECIDED ENTIRE BLOCKS OF VOTES WITHOUT EVEN POLLING MEMBERS MR SMITH'S PROPOSAL REQUIRES UNION MEMBERS TO JOIN THE PARTY TO HAVE A VOTE IN CTIONS A CHANGE THAT COULD GREATLY INCREASE THE PARTY'S MEMBERSHIP AS MR SMITH REPEATEDLY NOTED UNIONS HERE REPRESENT 48 MILLION WORKERS ABOUT 20 TIMES THE NUMBER OF LABOR PARTY MEMBERS AFTER THE VOTE MR SMITH ISSUED A STATEMENT CALLING IT A VERY GOOD DAY FOR THE LABOR PARTY AND AN IMPORTANT STEP TOWARD VICTORY AT THE NEXT GENERAL ELECTION STILL THE VICTORY CAME ON A VERY NARROW MARGIN 475 TO 44 AND OBSERVERS SAID THE VICTORY WAS ATTRIBUTABLE TO A LASTMINUTE DEAL WITH A MINOR UNION THAT AGREED TO ABSTAIN FROM THE VOTE TO COMPLICATE MATTERS DELEGATES ALSO APPROVED A SEPARATE UNIONPROPOSED MOTION THAT ESSENTIALLY CALLS FOR NO CHANGE IN PARTY VOTING PROCEDURES BUT MR SMITH'S SUPPORTERS CLAIMED AND OBSERVERS SEEMED TO AGREE THAT THEIR CONSTITUTIONAL AMENDMENT PREVAILS OVER THE UNION'S MOTION IN ANY CASE THE ISSUE LEAVES THE PARTY SHARPLY DIVIDED ESPECIALLY SINCE PARTY LEADERS DECLINED ALL DAY TO ACCEPT INVITATIONS FROM UNION LEADERS TO TRY TO REACH SOME KIND OF COMPROMISE ACCORDING TO OBSERVERS WHO DESCRIBED PARTY LEADERS AS DETERMINED TO PUBLICLY DISTANCE THEMSELVES FROM UNION LEADERS IN ARGUING AGAINST MR SMITH TRADE UNION LEADERS WON LARGE OVATIONS FOR ASSERTING THAT PUBLIC SUSPICION OF TRADE UNIONS WAS A MEDIA INVENTION THAT MR SMITH HAD SWALLOWED THE DIVISIVENESS ASIDE THE OUTCOME COULD GIVE THE LABOR PARTY PUBLIC MOMENTUM AT A TIME WHEN THE CONSERVATIVE PARTY IS ENORMOUSLY UNPOPULAR AND IN DISARRAY IN POLLS THE LABOR PARTY CURRENTLY ENJOYS A POPULARITY RATING OF 41 COMPARED WITH ABOUT 28 FOR CONSERVATIVES AND 25 FOR LIBERAL DEMOCRATS HOWEVER IN THE LAST ELECTION LABOR LED IN THE POLLS ONLY TO LOSE AT THE BALLOT BOX THE TORY CONFERENCE WILL BE HELD NEXT WEEK IN BLACKPOOL 9309300009 930930 BUSINESS BRIEF EKCO GROUP INC STOCK TUMBLES ON FORECAST FOR THE THIRD QUARTER YEAR EKCO GROUP INC CITING INCREASED SOFTNESS IN DEMAND FOR CONSUMER PRODUCTS SAID IT EXPECTS EARNINGS FOR THE THIRD QUARTER AND YEAR WILL BE WELL BELOW ANALYSTS' ESTIMATES FOR THOSE PERIODS EKCO SHARES PLUNGED 2 APIECE OR 19 TO 850 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE NASHUA NH HOUSEHOLD PRODUCTS CONCERN SAID IT EXPECTS THIRDQUARTER EARNINGS OF ABOUT 18 CENTS A SHARE AND ABOUT 55 CENTS A SHARE FOR THE YEAR A COMPANY SPOKESMAN SAID ANALYSTS HAD PREDICTED IT WOULD HAVE EARNINGS OF 27 CENTS A SHARE FOR THE THIRD QUARTER AND 70 TO 75 CENTS A SHARE FOR THE YEAR IN THE PRIOR YEAR'S THIRD QUARTER THE COMPANY HAD NET INCOME OF 29 MILLION OR 15 CENTS A SHARE ON REVENUE OF 553 MILLION FOR 1992 IT HAD NET OF 86 MILLION OR 46 CENTS A SHARE ON REVENUE OF 2066 MILLION THE COMPANY PLANS TO REPORT THIRDQUARTER RESULTS OCT 25 RESULTS FOR 1992 HAVE BEEN RESTATED TO REFLECT A NEW METHOD OF ACCOUNTING FOR INCOME TAXES 9309300008 930930 WHO'S NEWS WESTINGHOUSE SAYS HOLLINSHEAD TO RETIRE AS ITS FINANCE CHIEF PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID ITS CHIEF FINANCIAL OFFICER WARREN H HOLLINSHEAD 57 YEARS OLD AGREED TO RETIRE EARLY CLEARING THE WAY FOR THE NEW CHAIRMAN MICHAEL H JORDAN TO BEGIN PUTTING TOGETHER HIS OWN MANAGEMENT TEAM MR HOLLINSHEAD HAD DECIDED TO TAKE EARLY RETIREMENT IN MID1995 BUT RECOGNIZING THAT WOULD MEAN A CHANGE IN A MAJOR POSITION ON MY TEAM SUBSTANTIALLY INTO MY TERM AS CHAIRMAN MR HOLLINSHEAD OFFERED TO STEP DOWN EARLIER MR JORDAN SAID IN AN INTERNAL MEMORANDUM MR HOLLINSHEAD DECLINED TO BE INTERVIEWED AND WESTINGHOUSE WOULDN'T SAY WHETHER HE'D BEEN ASKED TO LEAVE THE COMPANY WHERE HE HAS WORKED FOR NEARLY 30 YEARS A SPOKESWOMAN SAID HE MADE THESE PLANS LAST YEAR IT'S SOMETHING HE'S TALKED ABOUT FOR A WHILE HOWEVER MAUREEN P LENTZ AN ANALYST AT ROULSTON & CO IN CLEVELAND SAID MR HOLLINSHEAD IS TOO CLOSELY ASSOCIATED WITH THE OLD MANAGEMENT OTHER ANALYSTS WHO DIDN'T WANT TO BE IDENTIFIED SAID WALL STREET HAD OFTEN BEEN MISLED BY MEMBERS OF FORMER CHAIRMAN PAUL E LEGO'S MANAGEMENT TEAM MR JORDAN THEY INDICATED WANTS A FRESH TEAM MR JORDAN SAID WESTINGHOUSE WOULD SEARCH FOR A NEW CFO BOTH INSIDE AND OUTSIDE THE COMPANY ANALYSTS EXPECT THAT THE HUNT WILL CONCENTRATE ON OUTSIDERS BECAUSE INBRED WESTINGHOUSE NEEDS OFFICERS WITH A NEW PERSPECTIVE MR JORDAN A FORMER PEPSICO INC EXECUTIVE BECAME THE FIRST OUTSIDER IN 64 YEARS TO BE NAMED TO THE TOP POSITION AT WESTINGHOUSE ON JUNE 30 THE CFO'S SPOT IS SEEN AS CRUCIAL TO THE SUCCESS OF THE PLAN MR JORDAN IS FORMULATING TO PULL WESTINGHOUSE OUT OF ITS FINANCIAL DISTRESS THE COMPANY WAS PUSHED DEEP INTO DEBT BY 5 BILLION IN CHARGES IN ITS FINANCIAL SERVICES UNIT AND MR JORDAN IS KNOWN TO FOCUS ON NUMBERS HAVING HIMSELF SERVED AS CHIEF FINANCIAL OFFICER OF PEPSICO 9309300007 930930 MARKETSCAN FRESH PRODUCE MELTS THE VEGETABLE ICE AGE BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THESE ARE CHILLING TIMES IN THE FROZENVEGETABLE BUSINESS THE CATEGORY THAT ONCE SYMBOLIZED MODERN COOKING CONVENIENCE HAS BEEN SHAKEN BY BAD NEWS THIS WEEK KRAFT GENERAL FOODS WHICH PIONEERED THE INDUSTRY NOW WANTS TO ABANDON IT THE COMPANY CONFIRMED RUMORS THAT ITS BIRDS EYE UNIT IS ON THE BLOCK GRAND METROPOLITAN PLC'S GREEN GIANT THE LEADING NATIONAL BRAND IS CLOSING SEVERAL PLANTS AND LAYING OFF HUNDREDS OF EMPLOYEES AND DEAN FOODS CO A BIG PROCESSOR OF PRIVATELABEL PEAS AND CARROTS BLAMED LOWER EARNINGS ON ITS VEGETABLES OPERATION THE SLICE 'EM DICE 'EM AND ICE 'EM BUSINESS IS UNDERGOING A MATUREINDUSTRY SHAKEOUT FRESH VEGETABLES HAVE BECOME MUCH MORE READILY AVAILABLE WHILE MANY SUPERMARKETS HAVE BEGUN CARRYING THEIR OWN PRIVATE LABEL FROZEN VEGETABLES IN ADDITION THE DAYS OF MEALS WHERE FATHER MOTHER AND CHILDREN SAT DOWN TOGETHER FOR A MEAT AND A POTATO AND A VEGETABLE EVERY NIGHT ARE FADING SAYS ROGER ROBBE CORPORATE DIRECTOR OF FROZEN FOOD AND DAIRY AT SUPERVALU INC A BIG GROCERY WHOLESALER CATEGORY SALES OF FROZEN VEGETABLES ARE SLOWLY SLIDING IN THE 52 WEEKS ENDED AUG 15 SALES FELL LESS THAN 1 TO 182 BILLION ACCORDING TO SUPERMARKET DATA COMPILED FOR THE WALL STREET JOURNAL BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNIT VOLUME THE NUMBERS OF BOXES AND BAGS THAT PASSED OVER CHECKOUT SCANNERS ALSO SLIPPED IN ADDITION TO THESE SALES RESTAURANTS AND OTHER FOODSERVICE CUSTOMERS REPRESENT ANOTHER 1 BILLION OR SO A YEAR AND GREEN BEANS AND OTHER VEGETABLES FOUND IN FROZEN DINNERS TOTAL ANOTHER 200 MILLION OR SO INDUSTRY EXECUTIVES SAY FOR YEARS FROZEN'S EDGE OVER FRESH PRODUCE WAS ITS YEARROUND AVAILABILITY TO SERVE CORN ON THE COB IN MIDWINTER WAS ONCE A REMARKABLE FEAT TODAY RAPID REFRIGERATED TRANSPORT ALLOWS LONGDISTANCE HAULS FROM DISTANT FIELDS GASFILLED WAREHOUSES AND OTHER EXTENDEDSTORAGE TECHNIQUES LET GROWERS STORE HARVESTS FOR MONTHS TO BETTER CONTROL SUPPLIES AND PRICES SUPERMARKET PRODUCE SECTIONS NOW ARE A CORNUCOPIA OF BRIGHT COLORS AND EXOTIC SHAPES GREENS THE ECONOMICS OF THE FROZENVEGETABLES BUSINESS ALSO HAVE CHANGED MOST SUPERMARKETS CARRY HOUSE BRANDS OF PEAS AND OTHER VEGETABLES MAKING PLAIN FROZEN VEGETABLES A LOWMARGIN COMMODITY IN RESPONSE NAMEBRAND MANUFACTURERS TRIED TO ATTRACT CONSUMERS WITH FANCIER ITEMS WITH SAUCES SPICES AND NUTS EVEN AS THEY CUT OVERHEAD BUT IN MOVING INCREASINGLY INTO ENHANCED PREMIUMPRICED PRODUCTS SHOEPEG WHITE CORN WITH WITH RICE OR CREAMED SPINACH IN MICROWAVEABLE POUCHES FOR EXAMPLE NATIONALBRAND MANUFACTURERS HAVE RUN INTO PRICECONSCIOUS CONSUMERS WHO LOOKED BUT DIDN'T BUY KRAFT HAS TAKEN THE BIGGEST LUMPS THIRD IN MARKET SHARE BEHIND PRIVATELABEL MANUFACTURERS AND ARCHRIVAL GREEN GIANT ITS BIRDS EYE UNIT POSTED SUPERMARKET SALES OF 296 MILLION FOR THE 52 WEEKS THROUGH MIDAUGUST ACCORDING TO INFOSCAN THAT REPRESENTS A 33 DECLINE IN DOLLAR SALES FROM THE PREVIOUS YEAR AND A 53 DROP IN UNIT SALES IN THE SAME PERIOD GREEN GIANT SALES GREW 14 KRAFT'S SALE OF BIRDS EYE A COMPANY SPOKESWOMAN STRESSES THAT SELLING IS ONE OF SEVERAL OPTIONS BEING EXPLORED WOULD BE ITS SECOND OF A FROZENFOODS UNIT IN RECENT WEEKS THIS MONTH KRAFT A UNIT OF PHILIP MORRIS COS AGREED TO SELL ITS BREYER'S ICE CREAM UNIT TO UNILEVER NV ANALYSTS AREN'T SURE WHAT BIRDS EYE WOULD FETCH HOW PROFITABLE IT IS OR WHO MIGHT WANT TO BUY IT OTHER CURRENT MAJOR PLAYERS IN THE FREEZER CASE INCLUDE CONAGRA INC HJ HEINZ CO CAMPBELL SOUP CO AND NESTLE SA NONE OF WHICH HAS A FROZEN VEGETABLES LINE ALL CURRENTLY MAKE FROZEN DINNERS THAT TYPICALLY INCLUDE A SCOOP OF VEGETABLES SOME INDUSTRY EXECUTIVES SAY PRIVATELY BIRDS EYE'S PROBLEMS BEGAN WHEN THE OPERATION WAS MOVED FROM GENERAL FOODS'S WHITE PLAINS NY HEADQUARTERS OUT TO ORANGE CALIF WHERE IT BECAME PART OF ALLAMERICAN GOURMET MAKER OF BUDGET GOURMET FROZEN MEALS UNLIKE GREEN GIANT BIRDS EYE DOESN'T HAVE THE REVENUE STREAM OF A CANNED VEGETABLES LINE TO BUOY IT THE THREEYEAR INDUSTRY SLUMP HASN'T HELPED BECAUSE DISCUSSIONS WITH POTENTIAL BUYERS ARE UNDER WAY KRAFT OFFICIALS WON'T TALK ABOUT BIRDS EYE BUT LARRY BENJAMIN PRESIDENT OF ALLAMERICAN GOURMET SAID IN AN INTERVIEW THAT THE ENTIRE FROZENVEGETABLES CATEGORY IS JUST KIND OF SITTING THERE SOME SEGMENTS ARE DOING QUITE WELL AND SOME ARE DOING LESS WELL THE SALE OF BIRDS EYE WOULD UPROOT A FOUNDATION BRAND AT ONE OF THE WORLD'S FOOD GIANTS BACK IN 1929 THE OLD POSTUM CO NOW THE POST CEREALS BUSINESS AT KRAFT GENERAL FOODS ACQUIRED QUICKFREEZING MACHINERY FROM ONETIME FUR TRADER CLARENCE BIRDSEYE POSTUM ALSO TOOK THE NAME OF HIS COMPANY GENERAL FOODS WHICH IN 1988 MERGED WITH KRAFT WHILE KRAFT ENTERTAINS WOULDBE BUYERS GREEN GIANT'S PARENT GRAND METROPOLITAN HAS THE PARING KNIFE OUT THE LONDONBASED FOOD AND DRINKS GIANT ANNOUNCED THIS WEEK IT IS TAKING A 100 MILLION RESTRUCTURING CHARGE AT ITS VEGETABLES UNIT IN ALL FOUR VEGETABLEPROCESSING PLANTS IN THE US AND CANADA ARE TO BE CLOSED THAT FOLLOWS TWO YEARS OF DECLINING EARNINGS AT GREEN GIANT STILL GREEN GIANT IS HEWING TO ITS HO HO HO VIEW OF THE FUTURE WE SEE FROZEN VEGETABLES AS A GROWTH BUSINESS SAYS KENNETH J SOBASKI VICE PRESIDENT FOR GREEN GIANT BRANDS IN MINNEAPOLIS HE CITES RECENT GOVERNMENT EFFORTS TO ENCOURAGE MORE VEGETABLE CONSUMPTION AS WELL AS A TREND TOWARD WHAT HE CALLS MEAL SIMPLIFICATION COMBINING VEGETABLES WITH PASTA AND OTHER STARCHES INTO MAIN MEALS TODAY THE BRAND SELLS ABOUT 50 MILLION OF A LINE OF VEGETABLES AND NOODLE COMBOS CALLED PASTA ACCENTS MULTIINGREDIENT PREMIUMPRICED PRODUCTS ACCOUNT FOR TWOTHIRDS OF GREEN GIANT'S FROZENVEGETABLE SALES IN DOLLARS MR SOBASKI SAYS ADDING THAT THAT IS WHERE THE COMPANY'S EMPHASIS WILL BE LONG A CANNER GREEN GIANT CAME TO THE FREEZER CASE IN 1961 WITH FOUR BOILINBAGS ITEMS WITH BUTTER SAUCE BIRDS EYE ALSO HAS BEEN PUSHING HIGHEND ITEMS SUCH AS CALIFORNIASTYLE VEGETABLES WITH TANGY LEMONPEPPER SAUCE AND STIRFRY JAPANESESTYLE VEGETABLES SUCH PRODUCTS HAVE OBVIOUS APPEAL SAYS KRAFT'S MR BENJAMIN NOT A LOT OF PEOPLE WANT TO GO HOME AND CHOP UP BROCCOLI CAULIFLOWER AND RED PEPPERS 9309300004 930930 LEISURE & ARTS ON DISC ELGAR AT LAST BY BARRYMORE LAURENCE SCHERER EMI'S MONUMENTAL ELGAR EDITION HAS TAKEN ITS SWEET TIME TO GET HERE BUT THE THIRD AND FINAL VOLUME HAS FINALLY BEEN RELEASED THIS HEROIC SAGA BEGAN A NUMBER OF MONTHS AGO WHEN THE PEARL LABEL ISSUED THE COMPOSER'S COMPLETE ACOUSTICAL RECORDINGS IE THOSE MADE BEFORE THE DEVELOPMENT OF THE MICROPHONE THESE EARLIER ONES WERE RECORDED BY ELGAR BETWEEN 1914 AND 1925 BUT NO SOONER WAS THE MICROPHONE INTRODUCED THAN ELGAR WAS READY TO REDO HIS PREVIOUS WORK AND MORE USING THE IMPROVED METHOD EMI'S SET COMPRISES THE COMPLETE ELECTRICAL RECORDINGS HE MADE BETWEEN 1926 AND 1933 EVEN FOR THOSE WHO ARE NOT RABID ELGARIANS THESE NINE CDS PROVIDE IMPORTANT DOCUMENTS OF 20THCENTURY MUSICAL HISTORY NOWADAYS COMPOSERS ARE NO STRANGERS TO THE RECORDING STUDIO BUT 70 YEARS AGO RECORDINGS WERE REGARDED AS SUSPECT BY SOME BIG NAMES THE COMPOSERPIANIST FERRUCCIO BUSONI FOR EXAMPLE FELT THAT RECORDING HAMPERED HIS CREATIVITY AS A PERFORMER BY MAKING HIM CONSCIOUS THAT EVERY NOTE WAS GOING TO BE THERE FOR ETERNITY HENCE IF ELGAR WAS NOT THE FIRST MAJOR COMPOSER TO RECORD HIS OWN WORK HE WAS THE FIRST TO RECORD IT EXTENSIVELY AS DIGITAL IS TO ANALOG RECORDING SO ELECTRICITY WAS TO THE ACOUSTICAL METHOD WHERE THE OLD RECORDING HORN IN ITS TINY STUDIO DEMANDED CUTDOWN ORCHESTRAS AND DRASTIC RESCORING TO MAKE CERTAIN INSTRUMENTAL LINES HORN FRIENDLY TUBAS SUBSTITUTING FOR STRING BASSES FOR INSTANCE THE MICROPHONE ALLOWED ELGAR TO RECORD HIS SYMPHONIC WORKS WITH THE FULL COMPLEMENT OF INSTRUMENTS MOREOVER THOUGH RECORDINGS WERE STILL CUT DIRECTLY ONTO WAX DISCS AS THE PERFORMERS PLAYED THE MICROPHONE DID FACILITATE RECORDING OF ACTUAL PERFORMANCES OR AT LEAST IN ACTUAL CONCERT HALLS WITH THEIR MORE REVERBERANT ACOUSTICS NOTE FOR INSTANCE THE AMBIENT WARMTH OF THE 1926 COCKAIGNE OVERTURE WITH THE ROYAL ALBERT HALL ORCHESTRA RECORDED IN QUEEN'S HALL OR THE LIVE RECORDING OF THE CIVIC FANFARE FOLLOWED BY GOD SAVE THE KING CONDUCTED BY ELGAR IN THE BOOMING NAVE OF HEREFORD CATHEDRAL AMONG THE BIG GUNS IN THE PRESENT PACKAGE ARE THE TWO SYMPHONIES RECORDED IN 1930 AND 1927 AND THE VIOLIN AND CELLO CONCERTOS RECORDED WITH YEHUDI MENUHIN 1932 AND BEATRICE HARRISON 1928 IN THESE AND OTHER WORKS LIKE THE FROISSART CONCERT OVERTURE AND THE CROWN OF INDIA SUITE THE PERFORMANCES REVEAL ELGAR AS A CONDUCTOR WITH COMPLETE CONTROL OF HIS PERSONAL BRAND OF MUSICAL RHETORIC THOUGH HE USUALLY OPTS FOR ENERGETIC TEMPOS HIS OPENING OF THE FIRST SYMPHONY IS BRISKER THAN MOST CONDUCTORS NOW TAKE IT HIS PHRASING AND TEMPO CHANGES WITHIN A MOVEMENT ARE REMARKABLY FLEXIBLE WORLDS APART FROM THE COMPARATIVE RIGIDITY THAT HAS BEEN THE NORM IN OUR OWN TIME MOREOVER ELGAR THE CONDUCTOR PACKS AN EMOTIONAL PUNCH WITHOUT BEING SOPPY LISTEN TO THE FIRST MOVEMENT OF THE SECOND SYMPHONY OR TO THE ELOQUENT NIMROD OF THE ENIGMA VARIATIONS IN ADDITION TO A GLOWING ACCOUNT OF THE SERENADE FOR STRINGS TWO OF THE MOST VIVID CUTS ARE THE PRELUDE AND PRAISE TO THE HOLIEST TAKEN FROM THE LIVE EXCERPTS OF ELGAR'S 1927 PERFORMANCE OF THE DREAM OF GERONTIUS AT ROYAL ALBERT HALL HERE THE FIRE OF THE COMPOSER'S INSPIRATION OF THE MOMENT LEAPS OUT AT YOU AND THE EXPERIENCE IS AKIN TO PEERING THROUGH A STAINEDGLASS WINDOW BACKWARD OVER 66 YEARS THIS IS WHAT LIVE RECORDING IS ALL ABOUT MINGLED WITH THE MAJOR SYMPHONIC WORKS ARE MANY LIGHTER PIECES THAT EMPHASIZE ELGAR THE CHARMER IN THE SUITE FROM STARLIGHT EXPRESS WE HEAR HIM IN A NOSTALGIC MOOD THAT REFLECTS THE FACT THAT THE TURN OF THE CENTURY WAS THE ZENITH OF THE SOCALLED AGE OF THE CHILD WHEN WRITERS LIKE STEVENSON AND BEATRIX POTTER AND ILLUSTRATORS LIKE WALTER CRANE AND ARTHUR RACKHAM PRODUCED BOOKS THAT REMAIN TOUCHSTONES OF JUVENILE LITERATURE AND ART THE LAST VOLUME ALSO CONTAINS THE SET OF FIVE PIANO IMPROVISATIONS PLAYED BY ELGAR HIMSELF UNIQUE DOCUMENTS OF THE COMPOSER AS A PIANIST HIS MUSICAL IDEAS REMARKABLY WELL ORGANIZED IN AN INTERVIEW FOR GRAMOPHONE MAGAZINE EARLIER THIS YEAR MR MENUHIN RECALLED HIS SURPRISE AT MEETING ELGAR FOR THE FIRST TIME IN 1932 BY THEN ELGAR WAS A NATIONAL FIGURE OF ALMOST TOTEMIC STATURE YET TO MR MENUHIN HE WAS NOT A LARGERTHANLIFE PERSONAGE BUT A GRANDFATHERLY COUNTRY GENTLEMAN WHO SHOULD PROPERLY HAVE HAD A COUPLE OF HOUNDS GAMBOLLING AT HIS HEELS THIS IMPRESSION IS HAUNTINGLY ILLUSTRATED BY THE BONUS CUT INCLUDED IN VOLUME II THE RARE TRANSCRIPTION OF ELGAR DURING A REHEARSAL FOR THE 1927 RECORDING OF THE SECOND SYMPHONY WE HEAR NOT JUST THE MUSIC BUT THE VOICE OF THE MAN HIMSELF CAUGHT ON THE SLY HE WASN'T TOLD THE MIKES WERE ON UNTIL AFTERWARD THROUGH THE SURFACE NOISE THE WAX HAD BEEN PLAYED SEVERAL DAMAGING TIMES BEFORE ELGAR ASKED IF A SHELLAC MIGHT BE TAKEN FROM IT YOU HEAR HIM GETTING THE ORCHESTRA TO PLAY A CRITICAL PASSAGE OF THE THIRD MOVEMENT WITH RHYTHMIC BOUNCE CAN'T YOU GET IT TO GO OHEEDADUM THE LAST QUAVER NOT STARVED HE ASKS NOW 93 FOR GOODNESS SAKE SONOROUSLY BUT NOT FAST IT'S A GENTEEL BARITONE VOICE EVEN A QUITE YOUTHFUL ONE HE WAS 70 CERTAINLY FAR FROM THE BLUSTERY COLONEL BLIMP YOU MIGHT EXPECT FOUR YEARS LATER ELGAR RECORDED LAND OF HOPE AND GLORY WITH THE LONDON SYMPHONY FOR A PATHE NEWSREEL AND LEFT ANOTHER TINY VOCAL LEGACY THE TRANSFER FROM THE FILM SOUNDTRACK IS INCLUDED IN EMI'S VOLUME THREE BY NOW THIS SONG WAS PART OF THE FIBER OF EVERY BRITON AND UPON MOUNTING THE PODIUM ELGAR INTRODUCES THE PERFORMANCE WITH A SIMPLE REQUEST TO THE ORCHESTRA PLEASE PLAY THIS TUNE AS THOUGH YOU'VE NEVER HEARD IT BEFORE AND BOY DO THEY EVER MR SCHERER WRITES THE LETTER FROM NEW YORK FOR GRAMOPHONE MAGAZINE 9309300003 930930 TECHNOLOGY & HEALTH OBESE ADOLESCENTS FOUND LESS LIKELY TO MARRY MORE LIKELY TO EARN LESS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL PEOPLE PARTICULARLY WOMEN WHO ARE OVERWEIGHT IN ADOLESCENCE AND THEIR EARLY ADULT YEARS ARE LESS LIKELY TO GET MARRIED AND MORE LIKELY TO HAVE LOW INCOMES A STUDY FOUND RESEARCHERS CONDUCTING THE STUDY BLAMED AMERICAN SOCIETY'S DISCRIMINATION AGAINST OBESE PEOPLE FOR THEIR SOCIAL AND ECONOMIC STATUS THE RESEARCHERS SUGGESTED THAT THE NEW FEDERAL AMERICANS WITH DISABILITIES ACT THAT PROHIBITS EMPLOYMENT AND PUBLIC DISCRIMINATION AGAINST DISABLED PEOPLE BE EXTENDED TO COVER OVERWEIGHT PEOPLE THE NEW STUDY PUBLISHED IN THIS WEEK'S NEW ENGLAND JOURNAL OF MEDICINE WAS CARRIED OUT BY RESEARCHERS AT THE HARVARD SCHOOL OF PUBLIC HEALTH AND THE HARVARD MEDICAL SCHOOL IN BOSTON THE STUDY WAS BASED ON AN ANALYSIS OF A FEDERAL SURVEY OF MORE THAN 10000 YOUNG PEOPLE AGED 16 TO 24 YEARS WHO WERE INITIALLY INTERVIEWED IN 1979 AND EACH YEAR AFTERWARD TO FIND OUT HOW BEING OVERWEIGHT INFLUENCED THE FUTURES OF THE YOUNG PEOPLE THE RESEARCHERS TRACKED THROUGH THE INTERVIEWS WHAT HAPPENED SEVEN YEARS LATER TO THOSE WHO WERE OVERWEIGHT IN 1981 IN 1981 ABOUT 3 OF THE WOMEN AND 34 OF THE MEN WERE DEEMED OVERWEIGHT TO PINPOINT THE EFFECTS OF BEING OVERWEIGHT ALONE STATISTICIANS MANIPULATED THE STATISTICS TO RULE OUT THE INFLUENCE OF THE FAMILY BACKGROUND BECAUSE OVERWEIGHT PEOPLE PARTICULARLY WOMEN TEND TO COME FROM HOUSEHOLDS WHERE INCOMES AND PARENTAL EDUCATION ARE LOWER THAN THOSE OF NONOVERWEIGHT PEOPLE THE STATISTICIANS ALSO RULED OUT THE EFFECTS OF LOW IQ STATURE RACE ETHNIC BACKGROUND AND OTHER VARIABLES KNOWN TO INFLUENCE A PERSON'S WEIGHT AFTER DISCOUNTING THESE OTHER INFLUENCES ON WEIGHT THE RESEARCHERS FOUND THAT SEVEN YEARS LATER YOUNG WOMEN WHO WERE OVERWEIGHT IN 1981 AVERAGED 03 YEAR LESS SCHOOLING AND WERE 20 LESS LIKELY TO GET MARRIED THAN NONOVEN OF THE SAME AGE THE YOUNG WOMEN ALSO HAD HOUSEHOLD INCOMES AVERAGING 6710 A YEAR LESS THAN NONOVERWEIGHT WOMEN AND HAD A 10 HIGHER RATE OF POVERTY THE IMPACT OF BEING OVERWEIGHT WAS CONSIDERABLY LESS AMONG THE YOUNG MEN THE MAJOR DIFFERENCE BEING THAT THEY WERE 11 LESS LIKELY TO GET MARRIED THAN NONOVERWEIGHT MEN AMONG MEN HOWEVER SHORT STATURE WAS LINKED TO A LOWER INCOME AND A HIGHER RATE OF POVERTY THE RESEARCHERS ALSO RULED OUT THE POSSIBILITY THAT PHYSICAL AND MEDICAL PROBLEMS FROM EXCESS POUNDAGE KEPT THE YOUNG PEOPLE FROM GETTING AHEAD SOCIALLY AND ECONOMICALLY WHEN COMPARED WITH PEOPLE WHO HAD OTHER PHYSICAL OR MEDICAL PROBLEMS LIKE ASTHMA THE OVERWEIGHT PEOPLE STILL HAD LOWER RATES OF MARRIAGE AND LOWER INCOMES ALTHOUGH WE DID NOT MEASURE IT DIRECTLY DISCRIMINATION COULD EXPLAIN OUR FINDINGS THE RESEARCHERS SAID THEY NOTED THAT EVIDENCE FROM SEVERAL STUDIES INDICATES THAT OBESE PEOPLE PARTICULARLY WOMEN ARE HIGHLY STIGMATIZED IN THE UNITED STATES STIGMA AND DISCRIMINATION COULD ALSO EXPLAIN THE ASSOCIATION AMONG MEN BETWEEN HEIGHT AND LATER HOUSEHOLD INCOME AND POVERTY THEY ADDED THE FINDINGS THEY SAID SHOWED THAT BEING OVERWEIGHT DURING ADOLESCENCE HAS IMPORTANT SOCIAL AND ECONOMIC CONSEQUENCES THAT ARE GREATER THAN THOSE ASSOCIATED WITH MANY OTHER CHRONIC PHYSICAL CONDITIONS IN AN ACCOMPANYING EDITORIAL TWO LEADING RESEARCHERS IN OBESITY AGREED NOW THAT PREJUDICE AGAINST MOST FORMERLY STIGMATIZED GROUPS HAS BECOME UNFASHIONABLE IF NOT ILLEGAL ONE OF THE LAST ACCEPTABLE FORMS OF PREJUDICE IS AGAINST OBESE PERSONS WROTE ALBERT J STUNKARD OF THE UNIVERSITY OF PENNSYLVANIA AND THORKILD SORENSEN OF THE COPENHAGEN HEALTH SERVICES IN DENMARK THEY ADDED THAT PHYSICIANS ARE AMONG THE MOST PREJUDICED AGAINST OBESE PEOPLE 9309300001 930930 SMITH INTERNATIONAL TO BUY COMPANIES AND PRODUCT LINES HOUSTON SMITH INTERNATIONAL INC PLANS TO USE THE CASH IT AMASSED FROM THE SALE OF ITS DIRECTIONALDRILLING UNIT EARLIER THIS YEAR TO ACQUIRE COMPANIES AND PRODUCT LINES THAT COMPLEMENT THE DRILL BITS AND DRILLING SYSTEMS IT CURRENTLY SUPPLIES TO THE OIL INDUSTRY DOUG ROCK CHAIRMAN SAID THE DIRECTIONALDRILLING UNIT MANUFACTURED TOOLS AND EQUIPMENT ARE USED TO STEER OIL AND GAS WELLS TO SPECIFIC TARGETS SEPARATELY SMITH INTERNATIONAL SAID ITS THIRDQUARTER RESULTS ON AN OPERATING BASIS WILL EXCEED ANALYSTS' EXPECTATIONS OF EIGHT CENTS A SHARE THE COMPANY WILL HAVE A NET LOSS FOR THE QUARTER HOWEVER BECAUSE OF A ONETIME CHARGE OF 195 MILLION OR 49 CENTS A SHARE TO COVER THE COST OF SETTLEMENT AND LEGAL FEES FROM A CLASSACTION CIVIL SUIT REGARDING ALLEGED PRICEFIXING ON ROCK DRILLBIT PRICES IN 1992'S THIRD PERIOD SMITH INTERNATIONAL HAD A NET LOSS OF 1 MILLION OR FOUR CENTS A SHARE ON REVENUE OF 95 MILLION MR ROCK AND LOREN CARROLL THE COMPANY'S CHIEF FINANCIAL OFFICER SAID THAT THE THIRDQUARTER OPERATING RESULTS CONTINUE A TREND OF HIGHER NET INCOME FOR EACH QUARTER THIS YEAR A TREND THAT THEY EXPECT TO SEE AGAIN IN THE FOURTH QUARTER MR CARROLL SAID SMITH HAS BEEN SUCCESSFUL IN RAISING PRICES 6 FOR SOME OF ITS DRILL BITS AND MAKING THOSE INCREASES STICK IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SMITH SHARES CLOSED AT 1025 UP 50 CENTS THE COMPANY WHICH CURRENTLY HAS 120 MILLION IN CASH PLANS TO DIVERSIFY BY ACQUIRING PRODUCTS AND SERVICES FOR OIL AND GAS DRILLING WELL CONSTRUCTION AND PRODUCTMANAGEMENT SECTORS TYPICALLY KNOWN AS THE DOWNHOLE SECTOR 9309300130 930825 RULE OF LAW NEVER MIND ONLY' PROPERTY RIGHTS WERE VIOLATED BY GIDEON KANNER THE SUPREME COURT'S RULING LAST JUNE IN AUSTIN V US THAT FORFEITURES OF PROPERTY BELONGING TO PERSONS SUSPECTED OF DRUG DEALING CANNOT BE EXCESSIVE IN RELATION TO THE OFFENSE CAME TOO LATE FOR DONALD SCOTT A CALIFORNIA RANCHER MR SCOTT DIED IN OCTOBER FATALLY SHOT IN HIS OWN LIVING ROOM BY LOS ANGELES COUNTY SHERIFF'S DEPUTIES VENTURA COUNTY DISTRICT ATTORNEY MICHAEL BRADBURY HAS SAID THAT MR SCOTT'S KILLING MAY HAVE HAD ITS GENESIS IN A GOVERNMENT PLOT TO CONFISCATE MR SCOTT'S 200ACRE MALIBU RANCH VALUED AT SOME 5 MILLION THE CASE WHICH IS STILL UNRESOLVED RAISES IMPORTANT QUESTIONS ABOUT THE INTERRELATIONSHIP BETWEEN PERSONAL LIBERTIES AND PROPERTY RIGHTS PROTECTED BY THE CONSTITUTION ON OCT 2 1992 30 LAW ENFORCEMENT OFFICERS FROM THE LOS ANGELES COUNTY SHERIFF'S DEPARTMENT THE LOS ANGELES POLICE DEPARTMENT THE US DRUG ENFORCEMENT ADMINISTRATION THE NATIONAL PARK SERVICE AND THE CALIFORNIA NATIONAL GUARD RAIDED MR SCOTT'S RANCH THEIR OSTENSIBLE PURPOSE WAS TO SERVE A SEARCH WARRANT AND SEIZE MARIJUANA PLANTS SAID TO BE GROWING THERE WHEN THE RAIDERS BROKE INTO HIS HOUSE SHORTLY BEFORE 9 AM THE 61YEAROLD MR SCOTT WAS ASLEEP HE WAS AWAKENED BY THE NOISE AND CAME OUT OF HIS BEDROOM GUN IN HAND ONLY TO CONFRONT A SHERIFF'S DEPUTY WHO SHOT AND KILLED HIM A SEARCH OF MR SCOTT'S RANCH DISCLOSED NO MARIJUANA NOR ANY OTHER CONTRABAND SO WHAT WAS THE PROBABLE CAUSE ON WHICH THE SEARCH WARRANT WAS BASED EVIDENTLY A FEDERAL AGENT HAD CLAIMED THAT HE SAW THE POT PLANTATION WHILE FLYING 1000 FEET OVER MR SCOTT'S RANCH IN AN AIRPLANE HE DID SO HE SAID WITHOUT THE AID OF BINOCULARS ALSO PUZZLING WAS THE USE OF A MILITARYSTYLE RAID BY A 30MAN TASK FORCE JUST TO SERVE A SEARCH WARRANT ON A RECLUSIVE OLD MAN MR SCOTT AN HEIR TO A EUROPEAN FORTUNE WAS NO COLOMBIAN DRUG LORD NOR A HEAVILY GUARDED GANGSTER THERE WAS NOTHING TO KEEP THE POLICE FROM SIMPLY SERVING THE WARRANT AND SEARCHING THE PLACE WITHOUT ALL THE PARAMILITARY DRAMATICS NOR WAS COMPLETE SURPRISE CALLED FOR AFTER ALL YOU CAN'T DIG UP THE MARIJUANA PLANTS GROWING ON THE BACK 40 AND FLUSH THEM DOWN THE TOILET WHEN THE COPS KNOCK ON THE DOOR ONE MIGHT ALSO ASK HOW COME THE NATIONAL PARK SERVICE FOLKS THE COMPANIONS OF BAMBI AND SMOKY THE BEAR ARE RUNNING AROUND MALIBU STAGING MILITARYSTYLE RAIDS ON PRIVATE HOMES DON'T THEY HAVE BETTER THINGS TO DO INSIDE THE NATIONAL PARKS BUT WHAT DO I KNOW WELL LIKE WILL ROGERS I KNOW WHAT I READ IN THE PAPERS AND I READ THERE THAT THIS CAPER BY A GANG THAT COULDN'T SEE STRAIGHT EVEN IF ALAS IT COULD SHOOT ALL TOO STRAIGHT WAS A TRAGIC BLUNDER AT BEST AND A SINISTER PLOT AT WORST WE LEARN THIS FROM MR BRADBURY THE STRAIGHTSHOOTING DA WHO ISSUED A REPORT IN MARCH RECOMMENDING FURTHER ACTION BY A GRAND JURY MR BRADBURY CONCLUDES THAT THE REAL MOTIVE BEHIND THE RAID WAS NOT A SEARCH FOR DRUGS BUT THE RAIDERS' DESIRE TO SEIZE MR SCOTT'S RANCH UNDER FEDERAL FORFEITURE LAWS IT SEEMS THAT MR SCOTT'S WIFE HAD BEEN INVOLVED IN DRUG USE IN THE PAST AND THE RAIDING PARTY ORGANIZERS SURMISED THAT SHE MIGHT STILL BE AT IT IF SO HERE WAS A CHANCE TO BAG A 5 MILLION RANCH FOR THE FEDS THE SMOKING GUN TURNED OUT TO BE A PROPERTY APPRAISAL OF THE SCOTT RANCH WHICH THE SHERIFF'S DEPUTIES HAD PREPARED BEFORE THE RAID THEY EVEN HAD THE CHUTZPAH TO MAKE A MARGINAL NOTATION ON IT ABOUT A COMPARABLE SALE OF A NEARBY 80ACRE RANCH FOR 800000 IF THERE IS ONE THING THAT THE GOVERNMENT DOES WHEN IT MEANS TO ACQUIRE A CITIZEN'S LAND USUALLY BY EMINENT DOMAIN IT IS TO PREPARE AN APPRAISAL AND INVESTIGATE COMPARABLE LAND SALES BUT THAT IS CLEARLY ACQUISITORY CONDUCT THAT IS TOTALLY OUT OF PLACE IN A PURPORTED POT BUST AS MR BRADBURY'S REPORT PUT IT WE FIND NO REASON WHY LAW ENFORCEMENT OFFICERS WHO WERE INVESTIGATING SUSPECTED NARCOTICS VIOLATIONS WOULD HAVE ANY INTEREST IN THE VALUE OF THE RANCH OR THE VALUE OF THE PROPERTY SOLD IN THE SAME AREA MOREOVER A STATE NARCOTICS INVESTIGATOR AND A FEDERAL FOREST RANGER WHO PARTICIPATED IN THE RAID INDICATED THAT SEIZURE OF MR SCOTT'S RANCH WAS MENTIONED IN THE SHERIFF'S PRERAID BRIEFING THOUGH MR BRADBURY'S REPORT EXONERATES THE DEPUTY WHO FIRED THE FATAL SHOT SINCE HE WAS ACTING IN SELFDEFENSE IT NOTES THAT THE RAIDERS WERE INSTRUCTED TO LOOK FOR ANY OTHER DRUGS APART FROM THE CONJECTURED MARIJUANA PLANTS THAT WOULD JUSTIFY A FORFEITURE IN SHORT THIS CAPER SMELLS TO HIGH HEAVENS AND THE SMELL IS DISTINCTLY ACQUISITORY SO WHAT'S THE MORAL OF THIS SAGA CONSIDER THE CONSTITUTION WHAT WE HAVE HERE IS A GRIM REMINDER THAT THE LIBERTIES PROTECTED BY THE BILL OF RIGHTS ARE NOT NEATLY DIVISIBLE INTO PROPERTY RIGHTS AND PERSONAL LIBERTIES EVEN WHERE THE INVASION IS ONLY OF ONE'S PROPERTY RIGHTS IT OFTEN IMPLICATES VIOLATION OF OTHER RIGHTS AS WELL EVEN THE RIGHT TO LIFE ITSELF HERE IS AN OBJECT LESSON THAT WHERE ONE CATEGORY OF FUNDAMENTAL CONSTITUTIONAL RIGHTS IS NOT SECURE FROM GOVERNMENTAL OVERREACHING NEITHER ARE THE OTHERS ALL OF WHICH BRINGS TO MIND THE INSIGHT OF THE LATE US SUPREME COURT JUSTICE POTTER STEWART WHO OBSERVED IN 1972 THAT THE DICHOTOMY BETWEEN PERSONAL LIBERTIES AND PROPERTY RIGHTS IS A FALSE ONE PROPERTY DOES NOT HAVE RIGHTS PEOPLE HAVE RIGHTS IN FACT A FUNDAMENTAL INTERDEPENDENCE EXISTS BETWEEN THE PERSONAL RIGHT TO LIBERTY AND THE PERSONAL RIGHT IN PROPERTY NEITHER COULD HAVE MEANING WITHOUT THE OTHER AND IF THAT IS NOT ENOUGH REFLECT ON THE FACT THAT THERE ARE NO SOCIETIES IN THE WORLD WHERE A HIGH DEGREE OF PERSONAL AND POLITICAL LIBERTY DOES NOT CORRELATE STRONGLY WITH ECONOMIC LIBERTY THERE MAY WELL BE A MORAL IN THAT TOO THAT LEAVES ONE LOOSE END DO YOU SUPPOSE THAT ATTORNEY GENERAL JANET RENO WILL NOW SWING INTO ACTION AND DEMAND THAT THE LAW'S RETRIBUTION BE VISITED ON THOSE IMPLICATED IN THIS OUTRAGE JUST AS RODNEY KING'S TORMENTORS FOUND THEMSELVES SUBJECT TO FEDERAL PROSECUTION MAYBE BUT I'M NOT HOLDING MY BREATH DISTRICT ATTORNEY BRADBURY'S CHARGE IS THAT ERRANT COPS INTENDED TO VIOLATE ONLY MR SCOTT'S PROPERTY RIGHTS WHICH WE ARE ENDLESSLY TOLD BY OUR IDEOLOGICAL BETTERS ARE LESS EQUAL THAN OTHERS BUT HOPE SPRINGS ETERNAL STAY TUNED MR KANNER PROFESSOR OF LAW EMERITUS AT LOYOLA LAW SCHOOL IN LOS ANGELES IS A COLUMNIST FOR THE LOS ANGELES DAILY JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR GOVERNMENT AGENTS AS BOUNTY HUNTERS WSJ SEPT 30 1993 9308250086 YY93 MM09 9309290155 930929 BUSINESS BRIEF PILLSBURY SLATES SOUTH AFRICAN VENTURE IN WAKE OF APPEAL TO LIFT SANCTIONS PILLSBURY CORP FORMED A JOINT VENTURE WITH SOUTH AFRICA'S FOODCORP LTD BECOMING THE FIRST COMPANY TO MAKE A SIGNIFICANT INVESTMENT IN THAT COUNTRY SINCE AFRICAN NATIONAL CONGRESS LEADER NELSON MANDELA FORMALLY APPEALED LAST WEEK FOR A LIFTING OF ALL ANTIAPARTHEID SANCTIONS THE MINNEAPOLISBASED UNIT OF BRITAIN'S GRAND METROPOLITAN PLC SAID IT HAS HELD INTERMITTENT DISCUSSIONS OVER THE PAST TWO YEARS ABOUT BRINGING ITS FAMILIAR JOLLY GREEN GIANT AND PILLSBURY DOUGHBOY TO SOUTH AFRICA IN ANTICIPATION OF THE LIFTING OF SUCH SANCTIONS BECAUSE OF POLITICAL CHANGES IN THE AFRICAN NATION THE 5050 VENTURE TO BE KNOWN AS PILLSBURY AFRICA LTD PROVIDES US WITH AN EXCEPTIONAL OPPORTUNITY TO BUILD OUR PILLSBURY BRANDS IN AN AREA WITH OUTSTANDING GROWTH POTENTIAL SAID PAUL S WALSH PILLSBURY'S CHIEF EXECUTIVE OFFICER SOUTH AFRICA'S ECONOMY THE COMPANY NOTED HAS BEEN RESTRAINED BY ECONOMIC SANCTIONS IN RECENT YEARS BUT GROWTH IS EXPECTED TO RESUME WITH THE LIFTING OF BARRIERS PILLSBURY ALSO ASSERTED THAT SOUTH AFRICA'S GROSS NATIONAL PRODUCT WHICH TOPS 70 BILLION ANNUALLY IS LARGER THAN THAT OF ALL OTHER AFRICAN COUNTRIES COMBINED HE EXPECTS A WAVE OF US COMPANIES TO INVEST IN SOUTH AFRICA THE US COMPANY DECLINED TO PROVIDE FINANCIAL DETAILS OF THE TRANSACTION IN WHICH IT WILL PAY CASH FOR A HALF STAKE WHILE THE SOUTH AFRICAN COMPANY CONTRIBUTES OPERATING ASSETS HOWEVER A FOODCORP OFFICIAL DISCLOSED THAT PILLSBURY IS PAYING 76 MILLION RAND OR 221 MILLION FOODCORP WHICH IS 72OWNED BY A SOUTH AFRICAN INDUSTRIAL GROUP KNOWN AS MALBAK LTD PRODUCES THE MARKET LEADER TABLE TOP LINE OF FROZEN VEGETABLES IT ALSO PRODUCES PREPARED MEATS SNACKS FLOUR AND BAKED GOODS THE NEW VENTURE WILL MAKE GREEN GIANTBRANDED VEGETABLE PRODUCTS AT TABLE TOP PLANTS ON SOUTH AFRICA'S EAST COAST CLOSE TO ITS VEGETABLEGROWING REGIONS LATER PHASES WILL PROBABLY INVOLVE PILLSBURY CHILLED PREPAREDDOUGH PRODUCTS THAT FOODCORP BRAGGED REPRESENT A PRODUCT UNLIKE ANYTHING ELSE CURRENTLY AVAILABLE IN THE SOUTH AFRICAN MARKET PILLSBURY SAID IT CONSIDERS THE NEW VENTURE A SPRINGBOARD INTO OTHER AFRICAN MARKETS 9309290154 930929 CLINTON SEEKS GRACEFUL EXIT FROM SOMALIA PRESIDENT SAYS UN SHOULD TRY ANOTHER APPROACH TO HELP RESTORE ORDER BY THOMAS E RICKS AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON RETREATING FROM THE ADMINISTRATION POLICY ENUNCIATED JUST LAST MONTH SAID HE WANTS TO PLACE A TIME LIMIT ON THE US PEACEKEEPING MISSION IN SOMALIA THE PRESIDENT YESTERDAY INDICATED THAT THE UNITED NATIONS SHOULD RECONSIDER ITS NATIONBUILDING APPROACH TO SOMALIA AND INSTEAD LAY OUT A STRATEGY THAT PUTS THE AFFAIRS OF SOMALIA BACK IN THE HANDS OF SOMALIS HE SAID THAT SUCH A STRATEGY WOULD GIVE EVERY COUNTRY THAT COMES INTO THAT OPERATION THE SENSE THAT THEY'RE ROTATING IN AND OUT THAT THERE IS A FIXED DATE FOR THEIR ULTIMATE DISENGAGEMENT IN SOMALIA BECAUSE THERE'S SO MANY OTHER PEACEKEEPING OPERATIONS IN THE WORLD THAT HAVE TO BE CONSIDERED THE PRESIDENT MADE HIS REMARKS ON THE SAME DAY THAT US OFFICIALS RECEIVED A LETTER FROM UN SECRETARY GENERAL BOUTROS BOUTROSGHALI SAYING THAT HE WOULD TRAVEL TO MOGADISHU IN MIDOCTOBER TO DEMONSTRATE THE UN'S COMMITMENT TO A POLITICAL SETTLEMENT IN A LETTER TO SECRETARY OF STATE WARREN CHRISTOPHER MR BOUTROSGHALI INDICATED THAT HE WOULD ENLIST THE SUPPORT OF NEIGHBORING STATES IN PROMOTING A POLITICAL DIALOGUE AMONG SOMALIA'S WARRING FACTIONS AND EMPHASIZED THE NEED FOR CONTINUED US MILITARY PRESENCE IN SOMALIA DURING THIS EFFORT IN A MEETING LAST WEEK MR CHRISTOPHER WARNED THE UN LEADER OF GROWING CONGRESSIONAL AND PUBLIC OPPOSITION IN THE US TO THE SOMALIA MISSION AND URGED HIM TO REFOCUS UN EFFORTS TOWARD FINDING SOME POLITICAL SETTLEMENT AND WITH IT AN EXIT POINT FOR US TROOPS THE ADMINISTRATION HAS SAID IT INTENDS TO COMMIT 25000 TROOPS TO A PEACEKEEPING MISSION IN BOSNIA IF THE MUSLIMS SERBS AND CROATS THERE REACH A PEACE AGREEMENT BUT THE ADMINISTRATION FACES BROAD RESISTANCE FROM CONGRESS ABOUT FULFILLING THAT PLEDGE ONE REASON FOR CONGRESSIONAL SKEPTICISM IS THAT THE FAR MORE LIMITED MISSION TO SOMALIA WHICH BEGAN LAST DECEMBER HAS DRAGGED ON UNEXPECTEDLY LONG YESTERDAY AFTERNOON THE HOUSE VOTED 40626 FOR A RESOLUTION THAT LIKE AN EARLIER SENATE RESOLUTION CALLS ON THE ADMINISTRATION TO JUSTIFY THE SOMALIA MISSION BY THE MIDDLE OF NEXT MONTH AND THEN WITHIN ANOTHER MONTH TO SEEK CONGRESSIONAL AUTHORIZATION FOR CONTINUING THE MISSION THE US CURRENTLY HAS 4544 TROOPS IN SOMALIA BUT HOPES TO HALVE THAT PRESENCE IN THE NEXT FEW MONTHS AS EGYPTIAN INDIAN AND NEPALI TROOPS ARRIVE IN THE COUNTRY WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID YESTERDAY THE WHITE HOUSE SUBSEQUENTLY ISSUED A STATEMENT WITHDRAWING THAT ASSERTION BUT DEFENSE DEPARTMENT OFFICIALS SAID IT WAS ESSENTIALLY CORRECT MS MYERS ADDED THAT THE US DOESN'T YET HAVE A DATE CERTAIN FOR TOTAL WITHDRAWAL FROM SOMALIA BUT WOULD LIKE TO SET ONE IN JUNE THE UN GENERAL ASSEMBLY PASSED A RESOLUTION AFFIRMING ITS MISSION IN SOMALIA AND SAYING THAT IT HOPES IT CAN COMPLETE IT BY MARCH 1995 IN NEW YORK MR CHRISTOPHER SAID THAT WE'RE IN A TRANSITION PHASE HERE CLEARLY YESTERDAY'S COMMENTS BY PRESIDENT CLINTON AND MR CHRISTOPHER CONTRAST SHARPLY WITH THE OPENENDED POLICY ARTICULATED 32 DAYS EARLIER BY DEFENSE SECRETARY LES ASPIN IN A SPEECH MR ASPIN CONCLUDED THAT PRESIDENT CLINTON HAS GIVEN US CLEAR DIRECTION TO STAY THE COURSE HE LISTED THREE CONDITIONS THAT NEEDED TO BE MET BEFORE US COMBAT TROOPS COULD BE PULLED OUT HEAVY WEAPONS NEEDED TO BE TAKEN FROM THE WARLORDS THE CAPITAL OF MOGADISHU NEEDED TO BE STABILIZED AND CREDIBLE POLICE FORCES NEEDED TO BEGIN PATROLLING THE MAJOR CITIES I THINK THE WHOLE POLICY HAS BEEN REASSESSED SINCE THAT SPEECH A SPOKESWOMAN FOR MR ASPIN SAID YESTERDAY AMONG OTHER THINGS SHE SAID THE POLICY REVIEW CONCLUDED THAT MORE EMPHASIS SHOULD BE PLACED ON DEVISING A POLITICAL SOLUTION IN SOMALIA AND LESS ON MILITARY OPERATIONS CARLA ANNE ROBBINS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9309290152 930929 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9309290151 930929 TEXAS JOURNAL ECONOMIC FOCUS NAFTA'S EFFECT ON TEXAS IT DEPENDS WHOM YOU ASK BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL CONFUSED ABOUT HOW THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT WILL AFFECT THE TEXAS ECONOMY DON'T WORRY SO ARE TEXAS ECONOMISTS DESPITE A FLURRY OF AUTHORITATIVESOUNDING STUDIES PREDICTING BIG GAINS IN EXPORTS JOBS AND PRODUCTION IN TEXAS IF CONGRESS RATIFIES NAFTA THE EXPERTS CONCEDE THEY'RE ESSENTIALLY FLYING BLIND THAT'S PARTLY BECAUSE THERE IS NO PRECEDENT FOR THE PROPOSAL TO CREATE ONE GIANT FREETRADE ZONE OUT OF THE US MEXICO AND CANADA BUT THE UNCERTAINTY IS PARTICULARLY PRONOUNCED IN TEXAS THANKS TO ITS LONG SHARED BORDER WITH MEXICO AND THE FACT THAT THE TWO ECONOMIES ARE ALREADY INTERTWINED ADD TO THAT THE GUESSWORK THAT GOES INTO CREATING ANY ECONOMETRIC MODEL ESPECIALLY AT THE STATE LEVEL AND IT'S EASY TO SEE WHY EVEN THE EXPERTS AREN'T TOO SURE OF THEMSELVES I THINK THE FACT IS NOBODY KNOWS WHAT THE HELL IS GOING TO HAPPEN SAYS KELLY FERO A SPOKESMAN FOR THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS FIRST THE CONSENSUS MOST ACADEMICS HERE AGREE THAT NAFTA'S PASSAGE WOULD BENEFIT TEXAS PROBABLY MORE THAN ANY OTHER STATE THAT'S BECAUSE TEXAS' EXPORTS TO MEXICO ARE GREATER THAN ANY OTHER STATE'S ABOUT 45 OF THE USTOMEXICO TOTAL THAT SAID ACADEMICS ALSO TEND TO AGREE THAT NAFTA ALONE WON'T HAVE MUCH IMPACT HERE THAT'S BECAUSE MEXICO ALREADY HAS HALVED ITS AVERAGE TARIFFS ON US GOODS SINCE 1986 TO ABOUT 10 HELPING FUEL A BOOM IN TRADE BUT THAT'S ONLY PART OF THE STORY EXPERTS ALSO WORRY THAT IF NAFTA DOESN'T PASS IT COULD DAMAGE THE POLITICAL CREDIBILITY OF MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI INCREASING THE CHANCE THAT FUTURE ADMINISTRATIONS WOULD RETURN TO A MORE INWARDLOOKING CENTRALIZED ECONOMY THAT IN TURN WOULD CHOKE THE GROWTH IN TRADE AND INVESTMENT TIES BETWEEN MEXICO AND TEXAS THUS ANALYSTS SAY A MORE USEFUL WAY TO LOOK AT NAFTA IS TO CALCULATE WHAT HAPPENS IF CURRENT TRADE AND POLITICAL TRENDS CONTINUE AND NAFTA PASSES AND THAT'S WHERE THE FIGHT BEGINS ACCORDING TO A STUDY BY UNIVERSITY OF TEXAS ECONOMISTS CHANDLER STOLP AND SIDNEY WEINTRAUB AND TEXAS PERSPECTIVES INC ECONOMIST JON HOCKENYOS NAFTA PASSAGE AND A CONTINUATION OF CURRENT MEXICAN ECONOMIC TRENDS WOULD LEAD TO THE CREATION OF 182000 NEW JOBS IN THE STATE BY 2003 THE STATE COMPTROLLER'S OFFICE PREDICTS 262000 NEW JOBS BETWEEN 1990 AND 2000 MEANWHILE M RAY PERRYMAN PRESIDENT OF PERRYMAN CONSULTANTS INC IN WACO FORECASTS THE CREATION OF 887935 PERMANENT TEXAS JOBS FROM 1993 TO 2000 THAT'S SHEER NONSENSE EXPLODES BERNARD WEINSTEIN DIRECTOR OF THE UNIVERSITY OF NORTH TEXAS CENTER FOR ECONOMIC DEVELOPMENT AND RESEARCH WHO SAYS HE BELIEVES THE UNIVERSITY OF TEXAS STUDY IS THE MOST REALISTIC PERHAPS BUT EVEN DR STOLP OF THE UNIVERSITY OF TEXAS CAUTIONS THAT HIS FIGURES AREN'T TO BE TAKEN TOO SERIOUSLY I WOULDN'T PUT MONEY ON THESE NUMBERS PER SE OR EVEN THESE NUMBERS PLUS OR MINUS 10 OR 50 HE SAYS IN A SENSE I THINK WE'RE TAKING A MICROSCOPE TO LOOK AT A FOOTBALL FIELD HERE SO IT'S KIND OF FUZZY AT THE MARGIN SOME REASONS FOR THE FUZZINESS IN DR STOLP'S MIND INCLUDE THE FOLLOWING IT'S ALL BUT IMPOSSIBLE TO FIGURE OUT HOW THE SERVICE AND DISTRIBUTION SECTORS WHICH REPRESENT ABOUT 75 OF TEXAS' ECONOMIC ACTIVITY WOULD REACT TO NAFTA THE EFFECT ON THE BORDER REGION ALSO REMAINS A MYSTERY SINCE FREER TRADE MIGHT LEAD TO A DECLINE IN MEXICANS CROSSING OVER TO BUY US GOODS AND NOBODY HAS ANY REAL FIX ON WHAT NAFTA MIGHT DO TO MEXICAN EXPORTS TO TEXAS THUS THE UNIVERSITY OF TEXAS STUDY FOCUSES JUST ON THE GOODSPRODUCING SECTORS IN TEXAS INCLUDING AGRICULTURE MINING AND MANUFACTURING BY EXTRAPOLATING FROM RECENT EXPORT TRENDS THE REPORT CONCLUDES THAT THE TEXAS SECTORS WITH THE MOST TO GAIN FROM LIBERALIZED TRADE WITH MEXICO INCLUDE AIRCRAFT AND PARTS MANUFACTURING ELECTRICAL COMPONENTS COMMUNICATIONS EQUIPMENT AND AUTO PARTS BREAKING THOSE SECTORS REGIONALLY THE STUDY PREDICTS THAT THE GREATER DALLASFORT WORTH AREA WILL BE THE BIGGEST BENEFICIARY WITH 414 OF THE NEW JOBS GREATER HOUSTON FOLLOWS WITH 213 WHILE SOUTH TEXAS AND CENTRAL TEXAS WOULD RECEIVE 77 AND 68 OF THE GAINS RESPECTIVELY BOTH THE PERRYMAN REPORT AND THE COMPTROLLER'S STUDY DIFFER FROM THE UNIVERSITY OF TEXAS EFFORT IN TWO BASIC WAYS THEY ATTEMPT TO ACCOUNT FOR SERVICES GROWTH FOR INSTANCE LAW FIRMS THAT HIRE NEW ASSOCIATES TO WORK ON TRADERELATED DEALS AND THEY USE A MULTIPLIER TO TRY TO GET AT JOBS THAT ARE CREATED BY THE RIPPLE EFFECT AS TRADERELATED WORKERS SPEND THEIR WAGES ON GROCERIES GASOLINE AND THE LIKE THAT BEING THE CASE WHY DO THE TWO STUDIES COME TO SUCH DIVERENT CONCLUSIONS FOR ONE THING DR PERRYMAN EXPECTS MUCH FASTER EXPT A BAD ASSUMPTION SINCE TRADE HAS ACCELERATED SINCE THE COMPTROLLER'S 1991 REPORT BUT HE ALSO OPTIMISTICALLY FIGURES EACH 1 BILLION IN NEW EXPORTS YIELDS 30938 PERMANENT TEXAS JOBS VERSUS 21129 UNDER THE COMPTROLLER'S CALCULATIONS A HUNTING WE WILL GO SOME BUYERS FOR TEXAS HUNTING LAND ARE FINALLY STARTING TO EMERGE FROM THE WOODS BUT IT'S STILL A BUYER'S MARKET BEFORE OIL AND NATURALGAS PRICES CRASHED IN THE MID1980S TEXAS HUNTING LAND TYPICALLY SOLD FOR 800 TO 1500 AN ACRE WITH THE HIGHER END RESERVED FOR PROPERTY INHABITED BY DEER BUT IN RECENT YEARS SUCH LAND HAS SOLD FOR 300 TO 900 AN ACRE AND THERE WERE NO BUYERS FOR A LONG TIME UNTIL THE LAST YEAR SAYS JERRY WATERS PRESIDENT OF HAWKEYE HUNTING CLUB A 2500ACRE RESORT IN CENTER TEXAS MR WATERS WHO ALSO OWNS CONSIDERABLE OTHER TEXAS HUNTING ACREAGE SAYS HE HAS SOLD THREE TRACTS IN THE PAST YEAR THOSE PARCELS HAD BEEN ON THE MARKET FOR MORE THAN THREE YEARS MORE PEOPLE ARE HUNTING AGAIN MR WATERS SAYS AND MORE OF THEM HAVE MONEY FOR THEIR OWN LAND TO DO IT ON MEXICAN GOVERNMENT CONTINUES ITS CURRENT POLICIES OF ECONOMIC LIBERALIZATION THE MULTIPLIER EFFECT ON OTHER SECTORS 9309290150 930929 FINANCING BUSINESS SPI HOLDING INC SPI HOLDING INC RICHARDSON TEXAS SAID IT SOLD SEVEN MILLION CLASS B COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE SIZE OF THE OFFERING WAS DECREASED FROM A PLANNED 75 MILLION SHARES THE COMPANY WHICH SAID IT PLANS TO CHANGE ITS NAME TO SPECTRAVISION INC ONCE IT GAINS REQUISITE APPROVAL SAID IT WILL USE PROCEEDS FROM THIS OFFERING AND A CONCURRENT OFFERING OF 150 MILLION FACE VALUE 115 SENIOR DISCOUNT NOTES TO REFINANCE DEBT UNDER SPI'S BANK CREDIT FACILITIES AND FOR GENERAL CORPORATE PURPOSES 9309290149 930929 FINANCING BUSINESS INTERNATIONAL TECHNOLOGY CORP INTERNATIONAL TECHNOLOGY CORP TORRANCE CALIF SAID IT COMPLETED A 60 MILLION PUBLIC OFFERING OF 24 MILLION DEPOSITARY SHARES AT 25 A SHARE EACH DEPOSITARY SHARE REPRESENTS 1/100TH OF A SHARE OF 7 CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK INTERNATIONAL TECHNOLOGY AN ENVIRONMENTAL MANAGEMENT COMPANY SAID IT WILL USE NET PROCEEDS OF 579 MILLION TO REDUCE DEBT BY PAYING DOWN A PORTION OF ITS 9 3/8 SENIOR NOTES DUE 1996 AND ITS REVOLVING CREDIT FACILITY THE OFFERING WAS MADE THROUGH SMITH BARNEY SHEARSON INC 9309290148 930929 INTERNATIONAL BRIEF SEARS PLC BRITISH CONCERN POSTS PROFIT FOR THE HALF ENDED JULY 31 SEARS PLC THE OWNER OF LONDON'S SELFRIDGES DEPARTMENT STORE SAID IT REGISTERED A PRETAX PROFIT OF 389 MILLION 589 MILLION FOR THE FINANCIAL HALF YEAR THAT ENDED JULY 31 COMPARED WITH A YEAREARLIER LOSS OF 971 MILLION THE YEAREARLIER FIGURE WAS RESTATED BECAUSE OF NEW UNITED KINGDOM ACCOUNTING RULES ORIGINALLY THE COMPANY HAD POSTED A PROFIT FOR THE YEAREARLIER PERIOD SALES SLIPPED 12 TO 9211 MILLION BUT OPERATING PROFIT AT CONTINUING BUSINESSES ROSE 26 ON PRODUCTIVITY GAINS AND A REINING IN OF DISCOUNTING SEARS PLC IS UNRELATED TO SEARS ROEBUCK & CO OF THE US OUR FOUR BUSINESS SECTORS FOOTWEAR HOME SHOPPING SELFRIDGES AND HIGHSTREET FASHION ALL HAVE GOOD PROSPECTS FOR PROFIT GROWTH AND IT IS OUR MAJOR PRIORITY TO IMPROVE OPERATING RETURNS IN THESE CORE AREAS SEARS PLC SAID 9309290147 930929 ECONOMY US CONSUMER CONFIDENCE ROSE SLIGHTLY IN SEPTEMBER WASHINGTON CONSUMER CONFIDENCE IMPROVED A BIT IN SEPTEMBER BUT IS STILL FAIRLY LOW THE LATEST CONFERENCE BOARD CONSUMER CONFIDENCE INDEX MOVED UP TO 626 LAST MONTH FROM 593 IN AUGUST THE INCREASE IS THE SECOND IN A ROW BUT STILL SHOWS THE MOOD OF AMERICANS IS QUITE POOR IN DECEMBER FOR INSTANCE THE INDEX SHOT UP TO 781 BUT SINCE THEN IT HAS ERODED FAIRLY CONSISTENTLY THE BREADTH OF THE SEPTEMBER INCREASE WAS ENCOURAGING THOUGH THE PACIFIC REGION WAS THE ONLY AREA OF THE COUNTRY NOT TO SHOW AN INCREASE IN CONFIDENCE DURING THE MONTH CONSUMERS WERE ALSO MORE OPTIMISTIC THAN THEY WERE IN AUGUST ABOUT THEIR PRESENT SITUATIONS AND THEIR EXPECTATIONS ABOUT THE FUTURE THE SLUGGISH JOB MARKET CONTINUES TO BE A SOURCE OF CONCERN FOR MANY PEOPLE LESS THAN 9 OF THE SURVEY RESPONDENTS SAID JOBS WERE PLENTIFUL WHILE 40 DESCRIBED THEM AS HARD TO GET CONCERN ABOUT JOBS MAY BE A REASON THAT CONSUMERS HAVE CURBED THEIR BUYING PLANS PLANS TO PURCHASE CARS HOMES AND MAJOR APPLIANCES WERE DOWN FROM THE PREVIOUS SURVEY RECENTLY HOWEVER THERE HASN'T APPEARED TO BE A DIRECT CORRELATION BETWEEN CONSUMER MOOD AND ACTUAL SPENDING WHICH HAS BEEN RISING 9309290146 930929 BUSINESS BRIEF BANCORP HAWAII INC THIRDQUARTER NET EXPECTED TO FALL SHORT OF ESTIMATES BANCORP HAWAII INC SAID PROBLEM LOANS AND INCREASED LOANLOSS PROVISIONS WOULD CAUSE ITS THIRDQUARTER NET INCOME TO FALL BELOW ANALYSTS' ESTIMATES THE HONOLULU BANK HOLDING COMPANY SAID EARNINGS FOR THE THIRD QUARTER WOULD BE BETWEEN 1 AND 105 A SHARE ANALYSTS HAD ESTIMATED BANCORP HAWAII WOULD EARN BETWEEN 115 AND 123 A SHARE FOR THE QUARTER AS REPORTED THE COMPANY'S BANK OF HAWAII UNIT IN DECEMBER SAID IT WAS CLASSIFYING 585 MILLION IN LOANS TO A GROUP OF INVESTORS AS NONPERFORMING AND CHARGING 20 MILLION OF THE LOANS OFF AGAINST LOANLOSS RESERVES BANCORP HAWAII SAID IT WAS UNABLE TO SELL PROPERTY THAT WAS COLLATERAL FOR THE LOANS AS A RESULT IT SAID IT CHARGED OFF A TOTAL OF 26 MILLION RELATED TO THE LOANS AND RESTORED ITS LOANLOSS RESERVE TO 17 OF ITS LOANS OUTSTANDING 9309290145 930929 TECHNOLOGY IN THE LAB A HALLUCINATION INSPIRES A VISION FOR AIDS DRUG BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS IF PROMISING RESEARCH AT TINY VERTEX PHARMACEUTICALS INC LEADS TO A NEW DRUG AGAINST AIDS A COMPANY SCIENTIST MAY BOAST THAT IT ALL STARTED WITH A HALLUCINATION THE SCIENTIST MANUEL NAVIA CHAMPIONS A FLEDGLING RESEARCH TECHNIQUE THAT USES COMPUTERIZED THREEDIMENSIONAL COLOR IMAGES OF MOLECULES TO DESIGN NEW DRUGS VERTEX LAUNCHED ITS SEARCH FOR A NEW KIND OF AIDS DRUG AFTER A 3D VISION OF A MOLECULE SUDDENLY POPPED INTO DR NAVIA'S MIND WHILE HE WAS READING A SCIENTIFIC JOURNAL DR NAVIA'S VISION NOW HAS VERTEX RACING FOR AN AIDS DRUG AGAINST THE WORLD'S LARGEST DRUG MAKERS ALREADY THE LITTLE COMPANY HAS STUNNED ITS RIVALS BY ANNOUNCING THAT ITS 90PERSON RESEARCH STAFF HAD DESIGNED A NEW CLASS OF DRUGS THAT IN LABORATORY TEST TUBES SUPPRESS THE HUMAN IMMUNODEFICIENCY VIRUS OR HIV THAT CAUSES AIDS MOST ESPECIALLY VERTEX APPEARS TO HAVE SOLVED MAJOR SCIENTIFIC RIDDLES BAFFLING THE BIG DRUG COMPANIES BY THE USE OF THE NEW COMPUTERAIDED DESIGN TECHNOLOGY VERTEX'S COMPOUNDS HAVE YET TO UNDERGO THEIR FIRST HUMAN TEST THE KIND THAT HAS SUNK MANY EXPERIMENTAL AIDS DRUGS AND THE ODDS ARE HEAVILY AGAINST ANY SINGLE DRUG EVER BEING THE MAGIC BULLET AGAINST AIDS STILL THE VERTEX DRUGS SAY A LOT ABOUT THE ABILITIES OF A SMALL COMPANY SAYS ROBERT SCHOOLEY AN AIDS RESEARCHER AT THE UNIVERSITY OF COLORADO AT DENVER AND AN ADVISER TO VERTEX THE VERTEX DRUGS BLOCK A VIRUS ENZYME CALLED A PROTEASE THAT IS VITAL TO THE HIV'S REPRODUCTION A DOZEN DRUG COMPANIES INCLUDING MERCK & CO HOFFMANNLA ROCHE INC ABBOTT LABORATORIES AND UPJOHN CO HAVE BEEN FURIOUSLY SEEKING DRUGS TO BLOCK HIV PROTEASE ACTIVITY AND THEREBY IMPEDE THE VIRUS'S SPREAD BUT SO FAR NONE OF THE HUNDREDS OF COMPOUNDS THEY HAVE MADE HAS PROVED A VIABLE MEDICINE THE PROBLEM LIES IN HOW THE PROTEASE ENZYME SNIPS A BIG PROTEIN INTO TWO PIECES THAT THE VIRUS THEN ASSEMBLES INTO NEW VIRUSES THE ENZYME'S SCISSORS ARE IN A LARGE JAWLIKE CAVITY ON THE ENZYME'S SURFACE CALLED ITS ACTIVE SITE THE DRUG MAKERS' STRATEGY IS TO JAM THE PROTEASE'S CUTTING MECHANISM BY FILLING THE CAVITY WITH A SYNTHETIC CHEMICAL COMPOUND THE PROBLEM WITH MOST PROTEASE BLOCKING DRUGS IS THAT THEY ALSO HAVE BEEN SO LARGE THAT THEY GET DIGESTED IN THE GUT BEFORE THEY CAN ENTER THE BLOODSTREAM SAYS JOSHUA BOGER A FORMER MERCK SCIENTIST WHO IS VERTEX'S FOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER THE GOAL THEN IS TO MAKE A DRUG SO SMALL IT CAN SLIP THROUGH THE GUT UNHARMED BUT STILL BE ABLE TO FILL UP THE ENZYME'S CUTTING SITE DR BOGER LEFT MERCK IN 1989 WHEN HE WAS 38 YEARS OLD AND CREATED VERTEX HIS PLAN WAS FOR THE COMPANY TO ANALYZE THE MOLECULAR STRUCTURES OF ENZYMES INVOLVED IN VARIOUS DISEASES AND FASHION DRUGS TO INHIBIT THEM KEY TO VERTEX'S STRATEGY WAS DR NAVIA WHOSE EXPERTISE IS USING COMPUTERS TO CREATE THREEDIMENSIONAL IMAGES OF PROTEIN MOLECULES WEARING 3D EYEGLASSES RESEARCHERS CAN THEN MANIPULATE THESE IMAGES ON A COMPUTER SCREEN TWISTING AND TURNING THE TINKERTOY SHAPE TO SCAN THE ACTIVE SITE FOR MOLECULAR CANYONS AND RIDGES WHERE A DRUG INHIBITOR MIGHT LODGE DRS BOGER AND NAVIA HAD WORKED TOGETHER ON MERCK'S INITIAL PROTEASE PROJECT BUT THEY LEFT THE BIG COMPANY EXHAUSTED BY THE EFFORT AND VOWING NOT TO RETURN TO IT AT VERTEX BUT IN 1991 WHILE READING A RESEARCH PAPER ABOUT THE STRUCTURE OF ANOTHER NEWLY DEVELOPED AIDS DRUG DR NAVIA WAS STRUCK WITH THE VISION OF A NOVEL WAY TO BLOCK PROTEASE BY THE TIME VERTEX REALIZED DR NAVIA'S IDEA WOULDN'T WORK THE RESEARCHERS HAD ALREADY STUMBLED ON SEVERAL OTHER PROMISING LEADS BUT TO COMPETE WITH BIG LABS AT MERCK AND ELSEWHERE AND AT THE SAME TIME TO CONTINUE RESEARCH IN OTHER AREAS WE HAD TO BE VERY FOCUSED DR BOGER SAYS WE DIDN'T HAVE A LEGION OF CHEMISTS TO THROW AT THE PROJECT THUS IT FELL TO DR NAVIA AND HIS COLLEAGUE EUNICE KIM TO GUIDE THE PROJECT'S FIVE CHEMISTS BY BUILDING EVERMORE PRECISE 3D MODELS OF THE PROTEASE BY THAT TIME HOFFMANNLA ROCHE A UNIT OF THE SWISS COMPANY ROCHE HOLDING LTD HAD DEVELOPED ITS OWN PROMISING PROTEASE BLOCKER VERTEX SCIENTISTS BELIEVED THE ROCHE DRUG WAS STILL TOO LARGE BUT WHEN DRS NAVIA AND KIM PRODUCED A 3D IMAGE OF THE DRUG SITTING IN THE PROTEASE ACTIVE SITE A CRITICAL CLUE WAS REVEALED THE ROCHE DRUG WAS VERY EXCITING SAYS VERTEX'S CHIEF CHEMIST 34YEAROLD ROGER TUNG SITTING IN A WINDOWLESS OFFICE THE SIZE OF A WALKIN CLOSET THAT HE SHARES WITH ANOTHER SCIENTIST DR TUNG SAYS THE ROCHE DRUG FILLED ONLY FIVE OF SIX POCKETS THAT STUD THE ACTIVE SITE'S INNER REACHES FROM STUDYING THE ROCHE DRUG INSIDE THE ACTIVE SITE DR TUNG SAYS WE REALIZED YOU COULD INHIBIT PROTEASE BY FILLING ONLY A FEW INNER POCKETS IT WAS AN IMPORTANT FINDING DR TUNG AND HIS CHEMISTS BEGAN SITTING FOR HOURS EACH DAY IN A SMALL DARKENED ROOM PEERING INTO 3D IMAGES OF THE PROTEASE IN COMBINATION WITH THE ROCHE DRUG WITH TEST DRUGS DEVELOPED BY OTHER LABS AND THEN WITH NEW INHIBITORS VERTEX'S STAFF SYNTHESIZED BIT BY BIT THE CHEMISTS SLICED OFF VARIOUS APPENDAGES OF THE TEST COMPOUNDS PULLING IN ELBOWLIKE REGIONS OF ATOMS HERE OR SHORTENING AN ARM OF ATOMS THERE ALL THE WHILE RETESTING THE SLIMMER COMPOUNDS' ABILITY TO BLOCK THE PROTEASE AFTER PRODUCING OVER 100 NEW CHEMICALS VERTEX LATCHED ONTO ONE THAT FILLED ONLY FOUR OF THE ACTIVE SITE'S SIX INNER POCKETS YET STILL STOPPED PROTEASE ACTION ANIMAL TESTS EARLY THIS YEAR SHOWED THAT MUCH OF THE VERTEX DRUG COULD PASS UNDAMAGED THROUGH THE DIGESTIVE TRACT BUT VERTEX'S EXCITEMENT WAS MUTED BY NEWS THAT DUPONTMERCK A JOINT VENTURE OF MERCK AND DUPONT CO HAD PRODUCED A SIMILARSIZED AND SLEEKLY SHAPED PROTEASE BLOCKER USING SIMILAR TECHNOLOGY AND MERCK USING A MORE CONVENTIONAL TECHNIQUE HAD PRODUCED A NEW FIVEPOCKET INHIBITOR THAT IT RUSHED TO TEST IN HEALTHY HUMANS AND MORE RECENTLY IN HIVINFECTED PEOPLE WE'RE IN A VERY COMPETITIVE RACE NOW DR BOGER SAYS I THINK WE MAY HAVE A WINNER WE'RE KEEPING OUR FINGERS CROSSED AND CROSSED FINGERS ARE CLEARLY WARRANTED IN AUGUST THE DUPONTMERCK'S EFFORT WAS DEALT A SETBACK WHEN EARLY TESTS IN HUMANS SHOWED THAT THE LIVER BROKE THE DRUG INTO AN INACTIVE COMPOUND FORCING THE COMPANY TO TURN TO OTHER DRUGS IN THE SAME CLASS SAYS DAVID JACKSON HEAD OF DUPONTMERCK'S PROTEASE RESEARCH PEOPLE HAVE TO UNDERSTAND THAT FROM THE LAB TO BEING USEFUL ALL SORTS OF THINGS CAN HAPPEN 9309290144 930929 MARKETING & MEDIA MURDOCH WITHDRAWS BID FOR NY POST AS DRIVERS PRESSMEN HONOR GUILD STRIKE BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH HAS WITHDRAWN HIS BID FOR THE NEW YORK POST AND THE TROUBLED TABLOID FACES EXTINCTION ONCE AGAIN MR MURDOCH'S NEWS CORP VOWED MONDAY TO CANCEL ITS PLANNED PURCHASE OF THE POST IF THE STRIKING NEWSPAPER GUILD DISRUPTED PUBLICATION PRESSMEN AND DRIVERS REFUSED TO CROSS THE GUILD'S PICKET LINE MONDAY NIGHT THUS PREVENTING PUBLICATION OF TUESDAY'S PAPER YESTERDAY MR MURDOCH MADE GOOD ON HIS PROMISE ALERTING BANKRUPTCY COURT AND THE CREDITORS' COMMITTEE FOR THE NEW YORK POST THAT THE 25 MILLION DEAL IS OFF NEWS CORP IS ADAMANT THAT THEY ARE WALKING AWAY FROM THE DEAL SAID A SPOKESMAN FOR THE COMPANY NEWS CORP WILL BE OUT OF THE BUILDING BY MIDNIGHT THURSDAY WHEN ITS CURRENT MANAGEMENT AGREEMENT TO OPERATE THE POST EXPIRES THE DEAL WAS SCHEDULED TO CLOSE FRIDAY HAVING BEEN APPROVED BY BANKRUPTCY COURT ALTHOUGH THE CHAIRMAN OF NEWS CORP THREATENED TO SCOTCH THE DEAL IN JULY WHEN THE PAPER CEASED PUBLICATION FOR SEVERAL DAYS TALKS LATER RESUMED WITH THE UNIONS AND THE PAPER REAPPEARED ON NEWSTANDS BUT PUBLISHING ANALYSTS SEE DIMINISHING HOPES FOR THE POST THIS TIME THIS LOOKS LIKE THE FINAL COUNTDOWN UNLESS SOMEBODY BLINKS AND I THINK THE BLINK WILL HAVE TO COME FROM THE UNIONS SAID JOHN REIDY A MEDIA ANALYST FOR SMITH BARNEY SHEARSON I DON'T BELIEVE THIS PROPERTY HAS ANY STRATEGIC RELEVANCE TO NEWS CORP AND I DON'T BELIEVE RUPERT MURDOCH IS WILLING TO BUY THE PAPER UNLESS ITS LOSSES CAN BE SERIOUSLY LIMITED WE THINK THAT NEWS CORP HAS A BINDING AGREEMENT TO BUY THE NEWSPAPER AND WE INTEND TO HOLD THEM TO IT SAID HOWARD SEIFE AN ATTORNEY WITH WINSTON & STRAWN WHO IS REPRESENTING THE CREDITORS' COMMITTEE HE ADDED ABSENT COURT INTERVENTION THE OUTLOOK FOR THE DEAL ISN'T GOOD BUT WE'RE DOING EVERYTHING WE CAN TO GET THE UNIONS AND MURDOCH BACK TOGETHER A SPOKESMAN FOR NEWS CORP SAID THE COMPANY BELIEVES IT RECEIVED PERMISSION TO BUY THE PAPER BUT ISN'T UNDER ANY OBLIGATION TO DO SO REPRESENTATIVES FROM ALL NINE UNIONS WITH MEMBERS AT THE POST MET YESTERDAY TO ASSESS THE SITUATION BUT DIDN'T MAKE ANY ANNOUNCEMENTS BY EARLY EVENING THE STRIKE BEGAN AFTER THE GUILD REFUSED TO ACCEDE TO A NEWS CORP DEMAND FOR A FOUR MONTH PERIOD DURING WHICH MANAGEMENT COULD FREELY FIRE POST EMPLOYEES A SPOKESMAN FOR THE STRIKING NEWSPAPER GUILD WHICH REPRESENTS NEARLY 300 OF THE POST'S 700 EMPLOYEES SAID MR MURDOCH DOES HAVE A REPUTATION FOR LIVING UP TO HIS THREATS BUT WE UNDERSTAND THAT HE PLANNED TO CUT UP TO 200 OF OUR MEMBERS' JOBS AND OUR MEMBERS FELT THEY COULDN'T AGREE TO HIS TERMS WE KNOW THE PAPER NEEDS TO CUT LOSSES BUT WE AREN'T WILLING TO SLIT OUR OWN THROATS ALTHOUGH THE POST'S OUTLOOK IS INCREASINGLY DIM SOME EDITORS AND REPORTERS THERE SAY THEY CAN'T BELIEVE MR MURDOCH WHO OWNED THE POST FROM 1976 UNTIL 1988 HAS REALLY GIVEN UP PLANS TO RECAPTURE IT I THINK RUPERT MURDOCH HAS INK IN HIS VEINS AND THAT BILLIONS OF DOLLARS DON'T GIVE HIM THE RUSH OF BIG HEADLINES IN A MAJOR CITY PAPER LIKE THE POST SAID RANDSDELL PIERSON AN INVESTIGATIVE REPORTER FOR THE POST I CAN'T BELIEVE HE WOULD COME THIS FAR AND THEN WALK AWAY NONETHELESS IF MR MURDOCH DOESN'T CHANGE HIS MIND MR PIERSON CAN'T IMAGINE WHO ELSE WOULD WANT THE UNPROFITABLE TABLOID MURDOCH HAS DEEP POCKETS AND A LOVE OF THE BUSINESS SAID MR PIERSON MY FEELING IS THAT IT'S DOUBTFUL ANY OTHER OWNER WOULD KEEP THE PAPER ALIVE 9309290143 930929 EPA SUES OPERATORS OF 30 SITES THAT BURN HAZARDOUS WASTE WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY FILED LAWSUITS AGAINST OPERATORS OF 30 INCINERATORS BOILERS AND INDUSTRIAL FURNACES ALLEGING VIOLATIONS OF FEDERAL REGULATIONS ON BURNING HAZARDOUS WASTE THE AGENCY IS SEEKING PENALTIES OF 198 MILLION FOR THE ALLEGED VIOLATIONS WHICH MAINLY INVOLVE A REGULATION REQUIRING BUSINESSES THAT BURN HAZARDOUS WASTE TO MONITOR EMISSIONS THE LAWSUITS ARE THE LATEST IN A SERIES OF EPA ACTIONS TO STIFFEN OVERSIGHT OF HAZARDOUSWASTE BURNING IN MAY THE AGENCY PLEDGED TO ISSUE NEW RULES ON APPROVAL FOR HAZARDOUSWASTE INCINERATION BUT AN EPA OFFICIAL SAID THOSE RULES AREN'T LIKELY TO BE ISSUED FOR TWO YEARS OFFICIALS SAID THAT THEY WEREN'T AWARE OF ANY DANGEROUS EMISSIONS RESULTING FROM THE ALLEGED VIOLATIONS BUT THEY EMPHASIZED THAT THE FAILURE TO MONITOR MAKES IT DIFFICULT TO KNOW WHETHER EXCESSIVE LEVELS OF TOXIC MATERIALS WERE RELEASED WE ARE CONCERNED THAT BOILERS AND INCINERATORS ARE BEING MISMANAGED SAID EPA ADMINISTRATOR CAROL BROWNER THESE FACILITIES DIDN'T KNOW WHAT THEY WERE BURNING AMONG THE COMPANIES BEING SUED ARE DOW CHEMICAL INC FOR OPERATIONS IN JOLIET ILL MIDLAND MICH AND PLAQUEMINE LA RHONEPOULENC INC FOR A FACILITY IN INSTITUTE WVA AND ETHYL CORP FOR ITS ACTIVITIES IN MAGNOLIA ARIZ CRAIG DOOLITTLE MANAGER OF COMBUSTION FOR DOW CHEMICAL IN NORTH AMERICA SAID THE SUITS PREDOMINANTLY DEAL WITH DOCUMENTATION AND MONITORING WE EXCEEDED NO EMISSIONS LIMITS THAT WE KNOW OF A RHONEPOULENC SPOKESMAN SAID THE EPA HAD PROPOSED A 915000 FINE FOR ALLEGED AIR EMISSION VIOLATIONS FOR A BOILER AT THE FACILITY IN INSTITUTE BUT WE BELIEVE OUR FACILITY IS IN COMPLIANCE OF EPA'S AIR EMISSION REQUIREMENTS HE SAID ETHYL OFFICIALS COULDN'T BE REACHED OF THE 30 FACILITIES INVOLVED IN THE LAWSUITS 28 ARE BOILERS AND INDUSTRIAL FURNACES THAT BURN HAZARDOUSWASTE MATERIALS TO GENERATE ENERGY THE OTHER TWO ARE INCINERATORS WHICH BURN HAZARDOUS WASTE FOR DISPOSAL ONLY 9309290142 930929 INTERNATIONAL JAPAN'S LIBERAL DEMOCRATS FACE A FIGHT AS YOUNG TURKS SEEK TO CURB OLD GUARD BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S RULING COALITION IS WIDELY PORTRAYED AS FRAGILE BUT ONE THING COULD KEEP THE UNWIELDY ALLIANCE IN POWER FOR SOME TIME THE OPPOSITION APPEARS EVEN MORE UNSTABLE A NEW FIGHT IS LOOMING IN THE LIBERAL DEMOCRATIC PARTY WHICH LAST MONTH LOST POWER AND NOW DOMINATES PARLIAMENT'S BACKBENCHES THE PARTY'S YOUNG TURKS ARE PUSHING MAJOR CHANGES AT A CONVENTION OPENING TODAY THAT WOULD FURTHER CURB THE POWERS OF THE OLD GUARD LDP ELDERS ARE RESISTING WHICHEVER SIDE PREVAILS OR EVEN IF A COMPROMISE IS STRUCK ANALYSTS SAY THE JOCKEYING UNDERSCORES DEEP PARALYZING DIVISIONS WITHIN THE PARTY THAT MAY KEEP THE CURRENT COALITION IN POWER FAR LONGER THAN EXPECTED THERE IS NO DOUBT THAT THE LDP IS ON THE PATH TO INTERNAL COLLAPSE SAYS MINORU MORITA A POLITICAL COMMENTATOR HE BELIEVES THE COALITION COULD STAY IN POWER THROUGH 1996 BEFORE CALLING NEW ELECTIONS LIFE IN OPPOSITION HASN'T BEEN EASY FOR THE LDP WHICH RULED SINCE THE PARTY'S FOUNDING 38 YEARS AGO IN A TELEVISION POLL THIS WEEK 73 OF RESPONDENTS SAID THEY DIDN'T WANT THE PARTY TO COME BACK TO POWER 791 BACKED THE GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA WHO ENJOYS SUPPORT RATINGS FAR HIGHER THAN ANY LDP PREMIER EVER DID THE LDP'S MAIN ATTACK STRATEGY THAT MR HOSOKAWA IS VAGUE AND THAT HIS POLICIES DON'T DIFFER MUCH FROM THE LDP HASN'T SCORED MANY POINTS WITH THE PUBLIC DRAWING NEW SUPPORTERS IS DIFFICULT IN KANAGAWA PREFECTURE NEAR TOKYO THE LOCAL LDP CHAPTER NEXT MONTH WILL EMPLOY A NEW RECRUITING TACTIC A MATCHMAKING SERVICE THAT WILL SEEK SPOUSES FOR SINGLE PEOPLE WHO JOIN THE PARTY MANY OF OUR SUPPORTERS ARE OLD CONCEDES AN OFFICIAL WE WANT TO GAIN YOUNG BACKERS MEANWHILE NEW SCANDALS CONTINUE TO PLAGUE THE LDP PROSECUTORS THIS WEEK ARRESTED SHUNTARO HONMA GOVERNOR OF MIYAGI PREFECTURE ON SUSPICIONS OF TAKING BRIBES FROM CONSTRUCTION COMPANIES MR HONMA HAS STRONG LDP TIES A LOCAL LDP OFFICIAL ALSO WAS ARRESTED FOR ALLEGEDLY CONSPIRING WITH HIM PROSECUTORS HAVE DETAINED SEVERAL LOCAL POLITICIANS AND CONSTRUCTION COMPANY EXECUTIVES IN RECENT WEEKS AND MORE ARRESTS ARE EXPECTED THE AUTHORITIES SEEM DETERMINED TO SMASH LONGSTANDING LINKS BETWEEN THE LDP AND THE CONSTRUCTION INDUSTRY A MAJOR BASE OF PARTY SUPPORT THE LDP LOST ITS GRIP ON POWER LAST SUMMER IN A BITTER INTRAMURAL BATTLE OVER REFORMING THE NATION'S CORRUPT POLITICAL SYSTEM WHEN PARTY LEADERS FAILED TO EMBRACE CHANGE ABOUT 40 MEMBERS DEFECTED STRIPPING THE LDP OF ITS PARLIAMENTARY MAJORITY AND ULTIMATELY OF ITS CONTROL BUT EVEN NOW THOSE POLITICIANS REMAINING IN THE LDP AREN'T UNITED A SPECIAL PARTY COMMITTEE HAS PROPOSED THAT THE CONVENTION THIS WEEK ADOPT REFORMS THAT EFFECTIVELY WOULD PURGE THE MEN WHO HAVE DOMINATED JAPANESE POLITICS FOR YEARS THE PROPOSALS INCLUDE MANDATORY RETIREMENT REQUIREMENTS FOR PARTY MEMBERS WHICH MIGHT MEAN SEVERAL FORMER PRIME MINISTERS WOULD HAVE TO RETIRE DISSOLVING THE INTRAPARTY FACTIONS THAT SUPPRESSED OPEN DEBATE AND ENFORCED THE POWER OF SENIOR MEMBERS AND ESTABLISHING AN INDEPENDENT ETHICS COMMITTEE THAT WOULD JUDGE PARTY MEMBERS TAINTED BY SCANDAL IN RECENT YEARS PARTY BOSSES HAVE STAYED IN POWER DESPITE ALLEGATIONS OF CORRUPTION MANY PARTY VETERANS OPPOSE THE PLAN TOP OFFICIALS ARE STUDYING THE ATMOSPHERE IN THE PARTY AND HAVEN'T TAKEN A POSITION YET AN LDP SPOKESMAN SAID BUT SEIICHI OHTA A LEADER OF YOUNGER LDP REBELS SAYS LONGSTANDING PARTY PRACTICES ARE AGAINST DEMOCRACY WAFFLING ON REFORM HE ADDS WILL CREATE AN ANTIESTABLISHMENT ATMOSPHERE AND COULD LEAD TO MORE DEFECTIONS WE WILL BE WATCHING CLOSELY HE WARNS DISAGREEMENTS ALSO THREATEN THE RULING SEVENPARTY COALITION WHICH HAS ONLY A THIN MAJORITY IN PARLIAMENT THE COALITION'S LARGEST MEMBER THE SOCIALIST PARTY IS ITSELF DIVIDED OVER MR HOSOKAWA'S ELECTORAL REFORM PROPOSALS MANY SOCIALISTS FEAR THE PLAN WOULD CUT INTO THE PARTY'S STRENGTH AND THEY THREATEN TO WITHHOLD SUPPORT EVIDENCE OF FOREIGNPOLICY DISAGREEMENTS WITHIN THE COALITION ARE ALSO EMERGING THE SOCIALISTS ARE MORE DOVISH ON FOREIGN POLICY THAN OTHER MEMBERS OF THE COALITION THE SOCIALISTS ARE BLOCKING MR HOSOKAWA FROM PROPOSING LEGISLATION THAT WOULD ALLOW JAPANESE MILITARY PLANES TO FLY OVERSEAS TO HELP JAPANESE AFFECTED BY NATURAL DISASTERS 9309290141 930929 INTERNATIONAL ANGLO AMERICAN SETS ASSET SWAP WITH AFFILIATES BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL ANGLO AMERICAN CORP OF SOUTH AFRICA AGREED TO AN ASSET SWAP WITH SOME OF ITS INTERLOCKING COMPANIES IN AN EFFORT TO GROUP AFRICAN AND NONAFRICAN ASSETS SOME ANALYSTS SUGGESTED THE CONGLOMERATE WHOSE INTERESTS INCLUDE GOLD DIAMONDS PLATINUM AND OTHER RESOURCES WANTED A HEDGE AGAINST POLITICAL CHANGE IN SOUTH AFRICA ANGLO AMERICAN IN PAST YEARS HAS BEEN UNEASY ABOUT BLACK POLITICAL VOWS TO REDISTRIBUTE THE WEALTH OF CONGLOMERATES THROUGH NATIONALIZATION OR AT LEAST PARTIAL LABOR OWNERSHIP UNDER THE PLAN AFFILIATE MINORCO SA WILL PAY 14 BILLION IN STOCK AND OTHER ASSETS FOR MAJOR SOUTH AMERICAN AUSTRALIAN AND EUROPEAN OPERATIONS OF ANGLO AMERICAN AND DIAMOND AFFILIATE DE BEERS CENTENARY AG THE SWAP SIMPLIFIES THE COMPANIES' OPERATIONS WITH MINORCO OWNING ALL THE SOUTH AFRICAN GROUP'S ASSETS OUTSIDE AFRICA WITH THE EXCEPTION OF DIAMONDS THE COMPANY SAID MINORCO A LUXEMBOURGBASED COMPANY THAT ALREADY OWNS LARGE MINERALS RESOURCES IN NORTH AMERICA AND EUROPE WILL ISSUE 55 MILLION MORE SHARES TO ANGLO AND DE BEERS UNDER THE AGREEMENT IT CURRENTLY HAS 170 MILLION SHARES OUTSTANDING AS A RESULT ANGLO AMERICAN AND ASSOCIATE COMPANIES' INTEREST IN MINORCO WILL RISE TO 528 FROM THE CURRENT 393 AND DE BEERS' STAKE IN MINORCO WILL INCREASE TO 226 FROM 211 THEN ANGLO AND DE BEERS WILL RECEIVE ALL OF MINORCO'S AFRICAN ASSETS INCLUDING A 499 STAKE IN ZAMBIAN COPPER INVESTMENTS A GIANT AFRICAN COPPER MINE MINORCO ALSO WILL INCREASE ITS STAKE IN MONDI EUROPEAN HOLDINGS A PULP PAPER AND PACKAGING COMPANY TO 95 FROM 21 AFTER PURCHASING A FURTHER 74 HOLDING OF ANGLO THE DEAL FLOWS FROM THE REENTRY OF SOUTH AFRICA INTO THE WORLD COMMUNITY SAID JULIAN OGILVIE THOMPSON CHAIRMAN OF ANGLO AMERICAN MINORCO AND DE BEERS HE SAID THE POLITICAL CHANGES IN SOUTH AFRICA FOR INSTANCE IMPROVE ITS CHANCES OF DEVELOPING MINING BUSINESSES ELSEWHERE IN AFRICA OUTSIDERS HAD A DIFFERENT POLITICAL SLANT ON THE PLAN THOUGH BY MOVING THE ASSETS OFFSHORE ANGLO IS MAKING SURE NO ONE IN SOUTH AFRICA CAN GET THEIR HANDS ON THEM SAID A MINING ANALYST AT SOUTH AFRICAN BROKERAGE FIRM JD ANDERSON INC 9309290140 930929 A TINY TOWN IN TEXAS IS FLOODED WITH PILGRIMS SEEKING A MIRACLE BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL THE IMAGE OF THE VIRGIN MARY HAS APPEARED TO TRUE BELIEVERS IN MANY PLACES OVER THE YEARS FROM A NURSINGHOME WINDOW IN ROCHESTER NY TO A CHINESE ELM IN NORTH HOLLYWOOD CALIF TO A DIRTY KITCHEN WINDOW IN OXNARD CALIF NOW IN THE TINY SOUTH TEXAS TOWN OF ELSA SHE IS MAKING A PERSONAL APPEARANCE ON THE DRIVER'S SIDE REAR FENDER OF DARIO MENDOZA'S 1981 MAROON CHEVROLET CAMARO THE IMAGE FIRST SHOWED UP ON A WARM EVENING TWO WEEKS AGO AS MR MENDOZA WAS CHATTING WITH A FEW RELATIVES OUTSIDE HIS HOUSE SAYS HIS NEPHEW SANTIAGO QUINTERO JR MR QUINTERO WHO WAS ALSO PRESENT SAYS THE MIRACLE SO IMPRESSED THE FAMILY THAT HE AND HIS MOTHER SISTER AND UNCLE ALL SLEPT OUTSIDE NEXT TO THE IMAGE THAT NIGHT THE NEXT DAY MR MENDOZA APPARENTLY STRUCK BY A SURGE OF SKEPTICISM WASHED THE CAR BUT THE IMAGE REMAINED AND ACTUALLY GREW LARGER MR QUINTERO SAYS AND WHEN THE LOCAL NEWSPAPER THE MONITOR REPORTED THE SIGHTING A FEW DAYS LATER SPARKING STORIES ON BROWNSVILLE'S LOCAL TV NEWS A SMALL STREAM OF VISITORS TURNED INTO A FLOOD THAT NIGHT SAY RESIDENTS MORE THAN 100 PEOPLE INCLUDING A MARIACHI BAND AND TWO OTHER CONJUNTOS OR MUSICAL GROUPS SHOWED UP FOR A FIESTA IN HONOR OF LA VIRGENCITA THE CRUSH OF VISITORS CONVINCED MR MENDOZA WHO HAD PLANNED TO DRIVE TO LOUISIANA LAST WEEK FOR SEASONAL WORK PICKING COTTON THAT HE HAD BETTER HITCH A RIDE AND LEAVE THE CHOSEN CHEVY BEHIND MR MENDOZA WHO'S STILL OUT IN THE COTTON FIELDS COULDN'T BE REACHED FOR COMMENT USING DONATIONS FROM PILGRIMS THE FAMILY AND FRIENDS IMMEDIATELY BUILT A SMALL WOODEN CHAPEL OVER THE CAR TO PROTECT THE IMAGE WHICH WAS RAPIDLY BEING SURROUNDED BY SMALL WRITTEN PRAYERS PHOTOS OF SUPPLICANTS VASES OF FLOWERS AND CANDLES MARIA AURORA QUINTERO WHO IS GUARDING THE CAR SHRINE FOR HER BROTHER SAYS THAT NO ONE IN THE FAMILY HAS ANY IDEA WHY THE VIRGIN CHOSE MR MENDOZA'S CAR FOR HER MIRACLE NEITHER DOES THE ROMAN CATHOLIC DIOCESE OF BROWNSVILLE WHICH HAS REMAINED MUM ON THE SUBJECT AS IT DID WHEN MARY ALLEGEDLY SHOWED UP TWO MONTHS AGO ON A COTTONWOOD TREE IN FRONT OF A BOARDING HOUSE IN THE NEARBY BORDER TOWN 9309290138 930929 VARITY TO REDEEM STOCK BUFFALO NY VARITY CORP SAID IT WILL REDEEM ITS CLASS I SERIES A CONVERTIBLE PREFERRED STOCK AT 20 A SHARE OCT 27 VARITY WHICH MAKES AUTOMOTIVE PARTS FARM MACHINERY AND DIESEL ENGINES SAID HOLDERS OF THE STOCK CAN CONVERT EACH SHARE INTO 06849 SHARE OF COMMON WHICH EQUATES TO A CONVERSION PRICE OF 2920 A COMMON SHARE THE RIGHT TO CONVERT THE PREFERRED STOCK WILL END OCT 20 THE COMPANY HAS 118 MILLION SHARES OF THE PREFERRED OUTSTANDING 9309290137 930929 TECHNOLOGY SMITHKLINE BEECHAM PURCHASE PHILADELPHIA SMITHKLINE BEECHAM PLC SAID IT ACQUIRED HOFFMANNLA ROCHE INC'S ROCHE ANIMAL HEALTH PACKAGED PHARMACEUTICAL PRODUCTS BUSINESS TERMS WEREN'T DISCLOSED SMITHKLINE BEECHAM SAID IT ALSO PURCHASED SEVERAL PRODUCTS CURRENTLY IN RESEARCH AND DEVELOPMENT INCLUDING A NONSTEROIDAL ANTIINFLAMMATORY PRODUCT AND AN ANTIINFECTIVE PRODUCT IN 1992 SMITHKLINE BEECHAM'S ANIMAL HEALTH UNIT HAD ABOUT 590 MILLION IN SALES THE COMPANIES DIDN'T DISCLOSE THE SIZE OF THE BUSINESS BEING PURCHASED 9309290136 930929 INTERNATIONAL JAPAN LEADERS IN ELECTRONICS FACE STRUGGLES BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE OUTLOOK IS GETTING BLEAKER FOR JAPAN'S GIANT ELECTRONICS COMPANIES AS THE STRONG YEN AND SLUMPING JAPANESE ECONOMY TAKE THEIR TOLL MATSUSHITA ELECTRIC INDUSTRIAL CO SLASHED ITS EARNINGS ESTIMATE FOR THE CURRENT FISCAL YEAR OTHERS INCLUDING TOSHIBA CORP ARE EXPECTED TO FOLLOW SUIT A SPOKESMAN FOR MATSUSHITA THE WORLD'S LARGEST MAKER OF ELECTRIC APPLIANCES SAYS THE COMPANY NOW EXPECTS ITS PRETAX PROFIT FOR THE YEAR ENDING IN MARCH TO TOTAL 150 BILLION YEN 142 BILLION ON A CONSOLIDATED BASIS WHICH INCLUDES ALL SUBSIDIARIES DOWN 11 FROM A YEAR EARLIER EARLY THIS SUMMER THE COMPANY PROJECTED PROFIT AT 210 BILLION YEN UP 25 FROM LAST YEAR THE JAPANESE CURRENCY'S STRENGTH MAKES MANY OF MATSUSHITA'S PRODUCTS MORE EXPENSIVE OVERSEAS WHILE REDUCING THE VALUE OF OVERSEAS SALES WHEN CONVERTED INTO YEN IN ADDITION THE UNUSUALLY COOL SUMMER IN JAPAN DENTED DEMAND FOR SUCH GOODS AS AIR CONDITIONERS MATSUSHITA'S COMMENTS CAME AFTER FUJITSU LTD JAPAN'S BIGGEST COMPUTER MAKER CONFIRMED PLANS TO CUT ITS RESEARCH AND DEVELOPMENT BUDGET A SPOKESMAN SAID THE TECHNOLOGY GIANT WILL CUT R&D SPENDING IN THIS FISCAL YEAR TO 280 BILLION YEN FROM 320 BILLION YEN OR 14 THE CUTS WILL COME IN SEMICONDUCTORS AND LARGESCALE COMPUTERS FUJITSU THIS YEAR BUDGETED A SMALLER REDUCTION IN R&D SPENDING BUT DEEPENED THE CUT AS BUSINESS CONDITIONS WORSENED FUJITSU ANNOUNCED ITS FIRST PRETAX LOSS EVER IN THE YEAR ENDED MARCH 31 AND WHILE THE COMPANY HAD FORECAST A PRETAX PROFIT OF 30 BILLION YEN THIS FISCAL YEAR A SPOKESMAN SAID TUESDAY THAT NOW APPEARS DIFFICULT TO REACH SEPARATELY IN YET MORE EVIDENCE OF THE FALLOUT FROM THE YEN'S SHARP RISE NEC CORP SAID IT PLANS TO TRANSFER PRODUCTION OF LAPTOP COMPUTERS TO ITS US FACTORY IN SEATTLE AT MATSUSHITA UNCONSOLIDATED OR PARENT COMPANY SALES FOR THE FIRST HALF ARE PROJECTED AT 214 TRILLION YEN DOWN 7 FROM A YEAR EARLIER FOR THE FULL YEAR THEY ARE NOW ESTIMATED AT 435 TRILLION YEN DOWN 4 FROM A YEAR EARLIER WE HAD EXPECTED A RECOVERY IN THE LATTER HALF OF THE CURRENT FISCAL YEAR BUT SUCH PROSPECTS AREN'T IN SIGHT YET THE SPOKESMAN SAID WE CAN'T SEE ANY DRAMATIC IMPROVEMENT IN CONSUMER DEMAND AS A RESULT MATSUSHITA EXPECTS TO REDUCE ITS CAPITAL SPENDING FOR THE YEAR TO ABOUT 280 BILLION YEN ON A CONSOLIDATED BASIS FROM ITS INITIALLY PROJECTED 330 BILLION YEN BUT THE SPOKESMAN SAID THE COMPANY WON'T CUT SPENDING ON R&D CALLING SUCH OPERATIONS A GEM FOR THE COMPANY'S FUTURE MATSUSHITA SPENT 4018 BILLION YEN ON R&D LAST YEAR THE FALLOUT FROM THE JAPANESE ECONOMIC DOLDRUMS IS AFFECTING MANY ELECTRONICS COMPANIES A SPOKESMAN FOR TOSHIBA SAID ITS PRETAX PROFIT FOR THE SIX MONTHS ENDING THURSDAY IS EXPECTED TO TOTAL ABOUT 20 BILLION YEN DOWN FROM ITS EARLIER ESTIMATE OF 25 BILLION YEN THE CLOUDIER OUTLOOK STEMS IN PART FROM A DISMAL PERFORMANCE AT A TOOLS UNIT ANALYSTS SAY THE OUTLOOK FOR ELECTRONICS COMPANIES IN THE SECOND HALF IS MUCH WORSE THAN INITIALLY ESTIMATED WE HAD HOPED FOR A RECOVERY IN THE LATTER HALF BUT NOW WE CAN'T EXPECT IT SAYS HIROSHI OKAMOTO AN ANALYST AT NEW JAPAN SECURITIES CO 9309290135 930929 WHO'S NEWS FFO FINANCIAL GROUP INC FFO FINANCIAL GROUP INC ST CLOUD FLA ALFRED T MAY 55 YEARS OLD AND WILLIAM R HOUGH 66 HAVE BEEN APPOINTED TO THE BOARD OF THIS SAVINGS AND LOAN HOLDING COMPANY EXPANDING THE BOARD TO SEVEN MEMBERS MR MAY RETIRED PRESIDENT AND CHIEF OPERATING OFFICER OF MIDSTATE FEDERAL SAVINGS IN OCALA FLA WAS ALSO NAMED CHAIRMAN SUCCEEDING JAMES B DAVIS 57 MR DAVIS REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR HOUGH IS CHAIRMAN OF A MUNICIPAL SECURITIES FIRM IN ST PETERSBURG FLA 9309290134 930929 PRONET SLATES ACQUISITION PLANO TEXAS PRONET INC SAID IT SIGNED AN AGREEMENT TO ACQUIRE CLOSELY HELD CONTACT COMMUNICATIONS INC FOR 176 MILLION THE MEDICAL COMMUNICATIONS PRODUCTS AND PAGING CONCERN SAID THE PURCHASE OF THE NEW YORK PAGING COMPANY WOULD ADD 74000 SUBSCRIBERS TO PRONET'S BASE OF 160000 PRONET SAID IT EXPECTS THE ACQUISITION WHICH IS SUBJECT TO REGULATORY APPROVAL TO CLOSE IN JANUARY THE ACQUISITION WILL BE FINANCED BY A CREDIT FACILITY ARRANGED BY FIRST NATIONAL BANK OF CHICAGO 9309290133 930929 MAXUS REJECTS BIDS FOR CONTRACT DALLAS MAXUS ENERGY CORP SAID IT REJECTED AS INADEQUATE BIDS RECEIVED FOR THE PROPOSED SALE OF ITS NORTHWEST JAVA PRODUCTION SHARING CONTRACT WHICH REPRESENTS ABOUT 30 OF THE COMPANY'S DAILY CRUDE OIL SALES MAXUS HOLDS A 24 INTEREST IN THE 58MILLION ACRE AREA OPERATED BY ATLANTIC RICHFIELD CO THE ENERGY COMPANY'S CURRENT SALES FROM A ARE ABOUT 20000 BARRELS A DAY IN MAY MAXUS PUT THE CONTRACT UP FOR SALE AND RETAINED MERRILL LYNCH & CO TO HANDLE THE TRANSACTION 9309290132 930929 TRITON'S SETTLEMENT OF SUITS DALLAS TRITON ENERGY CORP SAID ITS TENTATIVE AGREEMENT TO SETTLE ALL OUTSTANDING SHAREHOLDER AND DERIVATIVE LAWSUITS WON'T ADVERSELY AFFECT THE COMPANY THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID IT ALSO AGREED WITH ITS INSURANCE CARRIER CONCERNING FUNDING OF THE SETTLEMENT AND RELATED COSTS EXISTING LOSS RESERVES OF 27 MILLION ARE EXPECTED TO BE ADEQUATE TO COVER THE COMPANY'S SHARE OF THE SETTLEMENT WHICH IS STILL SUBJECT TO CONDITIONS AND NEGOTIATION OF A DEFINITIVE AGREEMENT 9309290131 930929 TREASURY PLANS TO SELL 236 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 350 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF 236 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2395 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS CUSIP 912794H31 MATURING ON JAN 26 1994 AND 26WEEK BILLS CUSIP 912794J88 MATURING APRIL 7 1994 MINIMUM DENOMINATION IS 10000 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9309290130 930929 AVIATION BEECH'S SLEEKLY STYLED STARSHIP FAILS TO TAKE OFF WITH CORPORATE CUSTOMERS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LEXINGTON MASS IT WAS A BOLD CONCEPT A SLEEK AIRPLANE MADE NOT FROM METAL BUT CARBONPLASTIC WITH STARTLING LSHAPED WINGS AND TWIN TURBOPROP ENGINES MOUNTED AFT TO PUSH RATHER THAN PULL RAYTHEON CO'S BEECH UNIT INVESTED A DECADE AND A SMALL FORTUNE ON IT CALLED IT STARSHIP AND MARKETED IT AS A FLASHY BUT FUELEFFICIENT ALTERNATIVE TO THE CORPORATE JET BUT STARSHIP HAS MADE A HARD LANDING IN THE MARKETPLACE IN ONE OF THE MOST EXPENSIVE FLOPS IN COMMERCIAL AVIATION RAYTHEON OFFICIALS NOW CONCEDE THEY HAVE QUIETLY WRITTEN OFF MUCH OF THE DEVELOPMENT COST OF THE PLANE ESTIMATED BY SOME ANALYSTS TO APPROACH 500 MILLION ONLY 23 STARSHIPS HAVE BEEN SOLD FEWER THAN HALF OF THE 50 ORDERS CLAIMED BY RAYTHEON BEFORE THE FIRST SALE IN 1990 NOT ONE STARSHIP HAS BEEN SOLD THIS YEAR ALTHOUGH RAYTHEON HASN'T GIVEN UP ON STARSHIP THE PLANE'S DISMAL SALES SHOW HOW EVEN A SUCCESSFUL COMPANY CAN MISJUDGE ITS CUSTOMERS AND MISREAD A CHANGING MARKET ALTHOUGH RAYTHEON'S EARNINGS HAVE BEEN RISING FOR YEARS THE COMPANY IS EAGER TO REDUCE RELIANCE ON GOVERNMENT DEFENSE CONTRACTS AND BUILD ITS BUSINESS IN COMMERCIAL AIRCRAFT ENGINEERING SERVICES AND OTHER AREAS STARSHIP MEANT TO BE AT THE VANGUARD OF THIS THRUST HAS INSTEAD BEEN A DRAG ON IT IT'S A HUGE MARKETING GAFFE SAYS CAI VON RUMOHR AN ANALYST AT COWEN & CO WHO NONETHELESS GIVES THE PLANE HIGH MARKS FOR ITS ENGINEERING THE GOOD NEWS IS IT'S MOSTLY BEHIND THEM RAYTHEON OFFICIALS SAY IMPROVEMENTS HAVE BEEN MADE IN A NEW MODEL THE 2000A WHICH WAS FLIGHTCERTIFIED LAST YEAR AND AN INSIDER SAYS STARSHIP'S PRICE WILL SOON BE CUT 600000 TO 43 MILLION THE COMPANY ACKNOWLEDGES THAT IT HAS WRITTEN OFF STARSHIP COSTS OVER THE COURSE OF THE PLANE'S DEVELOPMENT AN INVESTMENT IT PUTS AT MORE THAN 350 MILLION INDEED THE LATEST STARSHIP MODEL HAS WON SOME PLAUDITS FROM PILOTS WHO PRAISE ITS STABILITY HANDLING AVIONICS AND ROOMY INTERIOR RAYTHEON IS STARTING A NEW ADVERTISING CAMPAIGN DESIGNED BY TEAMONE THE FIRM THAT HANDLES THE LUXURY LEXUS AUTOMOBILE FOR THE PILOT AND THE PASSENGER IT HAS REALLY GOT EVERYTHING SAYS DENNIS MURPHY SALES MANAGER AT ELLIOTT FLYING SERVICES IN DES MOINES IOWA BUT FOR THE MONEY THE PERFORMANCE ISN'T THERE MR MURPHY ADDS FOR 5 MILLION YOU CAN BUY A JET STARSHIP JUST DOESN'T FIT IN TODAY'S MARKET DESPITE THE EXPENSE AND EMBARRASSMENT OF STARSHIP RAYTHEON IS LOOKING BEYOND IT THE COMPANY IS EXPANDING ITS BEECHJET LINE AND IN JUNE PAID 372 MILLION FOR BRITISH AEROSPACE OPERATIONS THAT INCLUDE TWO MIDRANGE JETS BEECH ALSO MAKES A SUCCESSFUL COMMUTER PLANE AND TRAINERS FOR THE AIR FORCE RAYTHEON COUNTED ON STARSHIP'S FUEL EFFICIENCIES TO ATTRACT FRUGAL BUYERS BUT AS THE PLANE DEVELOPED ENERGY PRICES FELL AND BECAME LESS OF AN ISSUE STARSHIP'S RELATIVE SLOWNESS AS A NONJET BECAME A LIABILITY AS SPEED REMAINED IMPORTANT FOR BUSINESS BUYERS STARSHIP'S SPACEAGE DESIGN WAS ALSO THOUGHT OF AS AN ATTRACTION FOR CORPORATE CHIEFS BUT IT TURNS OUT THE OLDERGENERATION CEOLEVEL MANAGER IS VERY CONSERVATIVE HE DOESN'T WANT PEOPLE POINTING AT HIM WHEN HE LANDS A RAYTHEON EXECUTIVE SAYS WHEN THE PROJECT BEGAN BEECH CHOSE TO USE AN ADVANCED CARBONCOMPOSITE SKIN A POSSIBLE FUTURE REPLACEMENT FOR ALUMINUM BUT THE FEDERAL AVIATION ADMINISTRATION HAD NEVER ENCOUNTERED A NONMETAL AIRPLANE AND CERTIFICATION TOOK FAR LONGER THAN NORMAL THE NEW MATERIAL ALSO REQUIRED A NEW FACTORY SPECIALLY TOOLED AT GREAT EXPENSE AND THE ELECTRICAL RESISTANCE OF THE GRAPHITEEPOXY BLEND POSED THE POSSIBILITY OF EXPLOSIONS FROM LIGHTNING STRIKES A PROBLEM THAT TOOK MONTHS OF WORK AND TESTS TO SOLVE BURT RUTAN WHO DESIGNED THE FIRST STARSHIP MODELS AND HELPED FLIGHTTEST THE PLANE SAYS MANUFACTURING COSTS WERE SO HIGH THEY'LL NEVER RECOVER THEIR INVESTMENT THEY EXPECTED BREAKEVEN AT ABOUT 500 UNITS MR RUTAN SAYS BEECH SELECTED THE MOST EXPENSIVE METHOD HANDLAYING EACH LAYER OF CARBONIMPREGNATED FABRIC FOR THE FUSELAGE MR RUTAN IS PRESIDENT OF SCALED COMPOSITES A FORMER RAYTHEON UNIT IN MOJAVE CALIF REPEATED DESIGN CHANGES KEPT ADDING WEIGHT TO THE PLANE ERODING ITS POTENTIAL PAYLOAD AND SPEED WHEN IT WENT ON SALE IN 1989 IT COULDN'T COME CLOSE TO THE PROMISED TOP SPEED OF 400 KNOTS IT DIDN'T MEET OUR CLAIMS OR EXPECTATIONS IT WAS SHORT ON RANGE PAYLOAD AND SPEED SAYS MAX BLECK WHO BECAME BEECH'S PRESIDENT IN 1985 AND IS NOW PRESIDENT OF RAYTHEON BUT MR BLECK ADDS THAT RAYTHEON LEARNED FROM THE EXPERIENCE AND IN A CRASH PROGRAM LARGELY REDESIGNED THE STARSHIP TO ADDRESS MOST OF ITS SHORTCOMINGS A LOT OF PEOPLE HAVE SAID WE SHOULD JUST CAN IT SAYS DENNIS PICARD CHAIRMAN AND CHIEF EXECUTIVE BUT WE'RE STICKING WITH IT BECAUSE WE BELIEVE IN IT JUST FLY IT ONCE YOU'LL LOVE IT MR PICARD WHO BECAME CHAIRMAN IN 1991 TOO LATE TO CHANGE COURSE ON THE STARSHIP IS LEAVING HIS OPTIONS OPEN IN THE FUTURE IF IT DOESN'T PULL OUT WE MAKE A NEW BUSINESS DECISION RAYTHEON FACES STIFF COMPETITION IN ITS PUSH INTO JET AIRCRAFT AT A TIME WHEN THE MARKET REMAINS DEPRESSED DESPITE A MODEST UPTICK IN THE SECOND QUARTER THEY'RE GOING UP AGAINST CESSNA THE MARKET LEADER NOTES COWEN'S MR VON RUMOHR CESSNA IS A TEXTRON INC UNIT THE PUSH INTO BUSINESS JETS IS KEY TO RAYTHEON'S STRATEGY OF REDUCING ITS RELIANCE ON DEFENSE ANALYSTS ESTIMATE THAT THE AIRCRAFT SEGMENT WILL AMOUNT TO ABOUT 18 BILLION OR 18 TO 19 OF TOTAL REVENUE NEXT YEAR WITH OPERATING PROFIT OF ABOUT 200 MILLION OR 16 TO 17 OF THE COMPANY'S OPERATING PROFIT NEXT YEAR AND STARSHIP NOW REPRESENTS ONLY A TINY PORTION OF THAT THE NEW STARSHIP MODEL IS NOW ON SALE ALBEIT WITH MORE MODEST EXPECTATIONS ON THE PART OF ITS MAKERS WE'RE AIMING FOR THE INDEPENDENTMINDED ENTREPRENEUR WHO'S BEEN VERY SUCCESSFUL AND WANTS TO MAKE A STATEMENT WHEN HE LANDS SOMEWHERE TO TURN HEADS WHEN HE TAXIS DOWN THE RUNWAY SAYS MR BLECK WE RECOGNIZE THAT'S A LIMITED MARKET 9309290129 930929 BREAKFAST AT TIFFANY'S SCHOOL BY DANA MACK IS A FREE BREAKFAST A FREE LUNCH AS ODD AS IT MAY SOUND POLITICIANS AND PARENTS HAVE BEEN ASKING THEMSELVES THIS QUESTION FOR A YEAR AND A HALF NOW IN THE SMALL MANUFACTURING TOWN OF MERIDEN CONN IN LATE JULY THE SCHOOL BOARD IN MERIDEN REJECTED FOR THE FOURTH TIME IN 18 MONTHS A STATE MANDATE THAT REQUIRES IT TO OFFER FREE OR REDUCEDCOST BREAKFAST TO 71 POOR CHILDREN AT THE JOHN BARRY ELEMENTARY SCHOOL THAT SCHOOLBOARD VOTE PROMPTED BY VOCAL OPPOSITION IN THE COMMUNITY SET OFF A BATTLE BETWEEN THE TOWN OF 60000 AND THE STATE OF CONNECTICUT THE BATTLE CULMINATED IN A SEPT 8 COURT ORDER FORCING THE TOWN TO INSTITUTE A CAFETERIA BREAKFAST PROGRAM WHY SHOULD THE RESIDENTS OF MERIDEN OBJECT TO A STATE GOVERNMENT PLAN TO PROVIDE HUNGRY CHILDREN WITH THE NOURISHMENT THEY NEED TO LEARN ESPECIALLY WHEN THE STATE HAS REPEATEDLY ASSURED THE TOWN GOVERNMENT THAT THE COST WILL BE TOTALLY COVERED BY STATE AND FEDERAL GRANTS OPPONENTS OF THE PROGRAM POINT TO THE NONCHALANCE WITH WHICH THE MERIDEN SCHOOL DISTRICT CURRENTLY RUNS THE FREE AND REDUCEDCOST LUNCH PROGRAM THE SCHOOLS IN MERIDEN THEY CONTEND VERIFY INCOME DATA ON ONLY 3 OF THE FORMS FILLED OUT BY PARENTS WHO WISH TO ENTER THEIR CHILDREN IN THE PROGRAM BUT MORE DISTURBING IS THE POSSIBILITY THAT THE CONNECTICUT STATE GOVERNMENT HAVING ORDERED FREE BREAKFASTS WILL SOMEDAY RENEGE ON ITS PROMISES TO FINANCE THEM IN THE 1980S THE STATE MANDATED MANY NEW EDUCATION PROGRAMS WITH PROMISES OF FEDERAL AND STATE FUNDING ONLY TO LEAVE LOCAL GOVERNMENTS FOOTING THE BILL AFTER A FEW YEARS OF THESE THE STATE MANDATES FOR SPECIAL EDUCATION ARE THE MOST NOTORIOUS IN FACT THE STATE DID NOT PRESENT MERIDEN'S SCHOOLBOARD MEMBERS WITH ANY BREAKFASTBUDGET FIGURES UNTIL ONE DAY BEFORE THE COURT ORDER ITS TWO ESTIMATES CAME IN AT 16000 AND 19000 A YEAR THE FIRST FROM OFFICIALS OF THE SCHOOL DISTRICT THE SECOND FROM THE STATE BUT BOTH SEEM TOO OPTIMISTIC MERIDEN ASSEMBLYMAN JIM TAVEGIA FEELS THOSE NUMBERS DO NOT REFLECT THE FULL PROJECTED COST OF THE BREAKFAST PROGRAM TO FEDERAL AND STATE GOVERNMENT NOR WHAT HE IS CONFIDENT WILL BE ITS FINANCIAL BURDEN ON THE CITY IN INKIND COSTS ELECTRICITY CUSTODIAL WORK AND THE LIKE MR TAVEGIA IS ESPECIALLY WORRIED SINCE MERIDEN FACES A MOUNTAINOUS BUDGET LADEN WITH SOCIAL PROGRAMS AND A DECLINING TAX BASE THE SCHOOLBREAKFAST CONTROVERSY IN MERIDEN IS ABOUT MORE THAN MONEY HOWEVER IT IS ALSO ABOUT A WAY OF LIFE DEAR TO MANY OF THE BLUECOLLAR ETHNIC COMMUNITIES THAT POPULATE THIS DEPRESSED FACTORY TOWN WILLIAM LUTZ ONE OF THE MINORITY ON THE BOARD OF EDUCATION THAT SUPPORTS THE BREAKFAST PROGRAM INSISTS THAT THE OVERWHELMING NEGATIVE REACTION OF MERIDEN'S CITIZENS TO THE STATE MANDATE IS A GUT REACTION ON THE PART OF THE TOWN'S SECONDGENERATION ITALIAN AND POLISHAMERICANS WHO RESENT A SOCIAL PROGRAM THAT BENEFITS MAINLY HISPANICS SAYS MR LUTZ THESE PEOPLE ARE THINKING THAT THEIR PARENTS DIDN'T HAVE THESE ADVANTAGES AND WHY AREN'T THEY THE HISPANICS STANDING ON THEIR OWN TWO FEET MR TAVEGIA AND OTHERS RESPOND BY ARGUING THAT FREE SCHOOL BREAKFASTS WILL GIVE HISPANIC IMMIGRANTS THE WRONG IMPRESSION ABOUT WHAT ACCULTURATION TO AMERICAN LIFE IS ALL ABOUT THEY ARE CONCERNED ABOUT SETTING UP A SCHOOL PROGRAM THAT SEEMS TO DISRUPT ESTABLISHED HEALTHY PATTERNS OF FAMILY LIFE WE ARE ABSOLVING POOR PARENTS OF AN IMPORTANT RESPONSIBILITY SAYS MR TAVEGIA PARENTS SHOULD SERVE KIDS BREAKFAST NOT SCHOOLS OF THOSE JOHN BARRY ELEMENTARY SCHOOL PARENTS LIKELY TO BENEFIT FROM THE FREE AND REDUCEDCOST SCHOOL BREAKFASTS NOT ONE HAS COME FORWARD AT A SCHOOLBOARD MEETING IN SUPPORT OF IT BUT SEVERAL HAVE CALLED SCHOOLBOARD PRESIDENT FRANK KOGUT TO TELL HIM THEY RESENT THE IMPLICATION THEY ARE NOT PROVIDING THEIR CHILDREN WITH BREAKFAST IT IS AT LEAST POSSIBLE THAT THE STATE OF CONNECTICUT IS MANDATING A SERVICE TO THE TOWN'S POOR THAT THEY DO NOT REALLY WANT IRONICALLY MERIDEN PROPONENTS OF THE PROGRAM SUGGEST THAT WHILE THERE ARE MANY LOWINCOME FAMILIES AT JOHN BARRY THERE ARE FEW IRRESPONSIBLE PARENTS AND PROBABLY ONLY ONE OR TWO WHO ACTUALLY SEND THEIR CHILDREN TO SCHOOL HUNGRY THESE DEFENDERS OF THE FREEBREAKFAST PROGRAM HAIL IT NOT FOR ITS CAPACITY TO MITIGATE PREVALENT OR ACUTE CHILDHOOD HUNGER BUT AS A WORTHWHILE PILOT PROGRAM FOR CHILDREN OF ALL INCOME LEVELS AND AS A MODEL OF MODERN CITYWIDE SCHOOL SERVICES MR LUTZ INSISTS THAT THE COSTS OF SERVING NEEDY KIDS BREAKFAST AT JOHN BARRY MAY EVENTUALLY BE OFFSET WITH PAID PARTICIPATION BY CHILDREN FROM MORE PROSPEROUS TWOINCOME FAMILIES WHOSE PARENTS ARE TOO BUSY TO JOIN THEM FOR BREAKFAST FAMILIES DON'T EAT BREAKFAST TOGETHER ANYMORE SAYS MR LUTZ MANY KIDS WHO EAT BREAKFAST ALONE AT HOME WOULD WELCOME THE OPPORTUNITY TO SIT DOWN TO A MUFFIN AND A GLASS OF MILK WITH THEIR FRIENDS AT SCHOOL ONE CAN HARDLY WONDER WHY THE PROGRAM MIGHT OFFEND THE SENSIBILITIES OF SECONDGENERATION AMERICAN ETHNIC GROUPS MANY OF WHOM REMEMBER WITH PRIDE POOR AND HAGGARD MOTHERS AND FATHERS STANDING OVER THEM AT BREAKFAST URGING THEM TO EAT THEY TOO SEE THAT FAMILY BONDS AND CULTURAL TRADITIONS ARE BEING ATTENUATED BY THE INCREASING INSTITUTIONALIZATION OF THEIR CHILDREN'S LIVES THERE ARE UNDOUBTEDLY A GROWING NUMBER OF PARENTS OUT THERE WHO WOULD LIKE NOTHING BETTER THAN TO PUSH THEIR YOUNG CHILDREN EACH MORNING OUT OF THE WARMTH OF THE FAMILY KITCHEN AND INTO THE COLD OF THE ELEMENTARYSCHOOL CAFETERIA BUT THESE ARE UNLIKELY TO BE POOR PEOPLE STILL LESS PEOPLE WHO GREW UP POOR PEOPLE WHO HAVE ENDURED ECONOMIC HARDSHIP AS CHILDREN SEEM TO KNOW INSTINCTIVELY THAT DISPOSSESSING POOR PARENTS OF THE POWER TO NOURISH THEIR YOUNG IS IN A FUNDAMENTAL WAY DISPOSSESSING THEM OF THEIR GREATEST SOURCE OF PRIDE COMFORT AND HOPE MS MACK IS AN AFFILIATE SCHOLAR AT THE INSTITUTE FOR AMERICAN VALUES A NEW YORKBASED ORGANIZATION FOR FAMILY POLICY RESEARCH 9309290128 930929 MARKETING & MEDIA ADVERTISING DURACELL WINDS DOWN TOY ADS TO RECHARGE WITH A NEW THEME BY KEVIN GOLDMAN AFTER 10 YEARS DURACELL IS FINALLY PUTTING AWAY ITS TOYS THE BIG BATTERY MAKER IS UNEXPECTEDLY DROPPING ITS SUCCESSFUL IF SOMEWHAT REPETITIVE ADVERTISING CAMPAIGN FEATURING CUSTOMBUILT TOYS THE COMPANY USED THE BATTERYPOWERED TOYS TO DEMONSTRATE ITS CLAIM THAT DURACELL LASTS LONGER THAN THE COMPETITION AND EVEN LONGER THAN OLDER VERSIONS OF ITS OWN BRAND DURACELL SAYS IT IS SIMPLY TIME FOR A FRESH CREATIVE CHARGE IN ITS ADVERTISING AND NOTES THAT ITS SALES STILL ARE GROWING NICELY BUT AS IN MANY PRODUCT CATEGORIES COSTCONSCIOUS CONSUMERS ARE SNAPPING UP MORE PRIVATELABEL BATTERIES THESE DAYS POSING A THREAT TO DURACELL AND OTHER NATIONAL BRANDS THE NEW CAMPAIGN WHICH BEGINS MONDAY ON THE FOUR MAJOR BROADCAST NETWORKS RELIES ON PERSONINTHESTREET INTERVIEWS SHOT ON VIDEOTAPE AND RESEMBLING A HOME MOVIE THE PLOT IS SIMPLE FOR YEARS CONSUMERS WERE TOLD THAT DURACELL WITH ITS COPPER TOP FAR OUTLASTS THE COMPETITION NOW ONE MAN SEARCHES FOR THE ANSWER TO THE QUESTION WHY THE TELEVISION AND PRINT CAMPAIGN FROM WPP GROUP'S OGILVY & MATHER REPRESENTS A 30 JUMP IN ADVERTISING SPENDING TO 48 MILLION ACCORDING TO DURACELL USA BASED IN BETHEL CONN THE CAMPAIGN TITLED QUEST IS QUITE A DEPARTURE FOR DURACELL THE PREVIOUS SPOTS RELIED HEAVILY ON VISUAL SIDEBYSIDE DEMONSTRATIONS TO CONVEY DURACELL'S SUPERIORITY CLAIM BUT THE NEW ADS RELY ENTIRELY ON THE SPOKEN WORD TO GET ACROSS THE MESSAGE A STRATEGY THAT MARKETING EXPERTS SAY IS HIGHLY RISKY CONSIDERING SO MANY VIEWERS HIT THE MUTE BUTTON ON THEIR REMOTE CONTROL DEVICES WHEN A COMMERCIAL POPS UP TO DATE DURACELL HAS PRODUCED MORE THAN 40 EXECUTIONS OF THE TOYS RANGING FROM TINY DRIVERS IN MINIATURE MOTORBOATS AND RACECARS TO BOXERS GUNFIGHTERS BALLOON ADVENTURERS AND MARATHON DANCERS BUT RESEARCH GLEANED FROM FOCUS GROUP SHOWED THAT THE CAMPAIGN HAD RUN ITS COURSE PEOPLE GOT THE MESSAGE WE LAST LONGER SAYS A DURACELL SPOKESMAN INDEED DURACELL IS THE CLEAR LEADER IN THE 15 BILLION BATTERY MARKET ACCORDING TO AC NIELSEN DURACELL HAD SALES OF 6127 MILLION IN THE 52WEEK PERIOD ENDED SEPT 4 SAYS NIELSEN REPRESENTING AN 8 INCREASE FROM THE YEAREARLIER PERIOD RIVAL ENERGIZER BY RALSTON PURINA'S EVEREADY BATTERY UNIT IS NO 2 WITH SALES OF 4041 MILLION UP 2 FROM A YEAR EARLIER BUT GROWING FAST ARE PRIVATE LABEL BATTERIES WHICH POSTED A 17 SALES INCREASE TO 474 MILLION THE DURACELL ADS ARE OFTEN CONFUSED WITH THE EVEREADY ENERGIZER ADS FEATURING THE MADDENING AND UBIQUITOUS BUNNY THOSE ADS FROM CHIAT/DAY IN VENICE CALIF HAVE BEEN PRODUCED SINCE 1989 IN MORE THAN 40 EXECUTIONS RIVALS SNIPE THAT THE BUNNY CONCEPT IS STARTING TO FADE AND SPECULATE ON HOW MUCH LONGER THE BUNNY WILL BE AROUND A CHIAT/DAY OFFICIAL DECLINED COMMENT DURACELL DIDN'T ABANDON ITS CHERISHED TOYS LIGHTLY THE NEW ADS WENT THROUGH CONSUMER FOCUS GROUP TESTS FOR THE PAST 18 MONTHS AND WERE HIGHLY RATED THE COMMERCIALS RELY ON UNDERSTATED HUMOR THE LEAD SPOT IN THE CAMPAIGN IS THE ONLY ONE TO FEATURE ACTORS INSTEAD OF GENUINE DURACELL USERS OFFERING PERSONAL TESTIMONY EACH AD IS NARRATED BY JOHN CRAWFORD A FORMER AD AGENCY EXECUTIVE WHO NOW HEADS HIS OWN SAN FRANCISCOBASED PRODUCTION COMPANY MR CRAWFORD BECOMES A SORT OF EVERYMAN AS HE ASKS ORDINARY CITIZENS WHY THEY USE DURACELL IN ONE SPOT HE HAPPENS UPON A VACATIONING FIREMAN WHO IS TRYING TO KEEP HIS TWO YOUNG CHILDREN OCCUPIED MR CRAWFORD WHO IS UNSEEN IN THE ADS SAYS VACATION UHHUH OKAY AND YOU SAY YOU USE DURACELL IN YOUR FLASHLIGHT AT THE FIREHOUSE THE FIREMAN REPLIES COPPER TOP YOU DEPEND ON THAT LIKE YOU DEPEND ON YOUR BUDDIES AT WORK AND THE BATTERIES ARE ALWAYS THERE WHEN I NEED IT WHETHER I'M CRAWLING THROUGH A HALLWAY OF A BURNING BUILDING LOOKING FOR KIDS OR WHETHER I'M PLAYING WITH MY OWN KIDS RIGHT HERE IN THE WOODS THE FIREMAN INCREASINGLY FRUSTRATED BY HIS RESTLESS CHILDREN IS ASKED WHETHER HE HAS EVER FIGURED OUT WHY THE PRODUCT LASTS SO LONG THE READY REPLY THEY TAKE ENERGY FROM LITTLE KIDS AND THEY PUT IT INTO THEIR BATTERIES OTHER ADS FEATURE SUCH REAL PEOPLE AS A SAILOR WHO SAYS THE BATTERIES ARE MY EYEBALLS WHEN THE REST OF THE BOAT'S SHUT OFF AND A SPORTSMAN IN THE FLORIDA EVERGLADES WHO USES THE BATTERIES IN A WEAPON THAT SPEARS FROGS EACH COMMERCIAL ENDS WITH DURACELL'S FAMILIAR THREE MUSICAL TONES THE SLOGAN NO OTHER BATTERY LASTS LONGER AND AN ADDED PHRASE THAT CHANGES WITH EACH COMMERCIAL THE FIREMAN SPOT ADDS THANKS TO THE LITTLE WHIPPERSNAPPERS THE BASIC PREMISE OF THE CAMPAIGN SEARCHING FOR THE ANSWER TO AN ETERNAL QUESTION COULD ENDURE FOR ANOTHER 10 YEARS NOT SO SAYS THE AD AGENCY NOTHING CAN GO ON FOREVER SAYS RICK BOYKO EXECUTIVE CREATIVE DIRECTOR AT OGILVY & MATHER ESPECIALLY WITH THE SHORT ATTENTION SPAN OF THE MTV GENERATION THINGS GET BORING VERY QUICKLY ONE ELEMENT MISSING FROM THE DOMESTIC CAMPAIGN IS PRINT DURACELL TRIED TO TRANSLATE ITS LASTS LONGER MESSAGE IN PRINT ADS THIS YEAR BY USING SOCALLED TIMELESS ICONS SUCH AS BOB HOPE AND DICK CLARK AND EVEN THE SUN BUT THE BATTERY COMPANY CONCEDES THE EFFORT FAILED TO BOOST SALES TOO BAD SAYS MR BOYKO BECAUSE I THOUGHT IT WAS JUST STARTING TO CLICK THE AD AGENCY CREDITS DURACELL FOR PULLING THE PLUG ON ITS LONGRUNNING TOY CAMPAIGN A MOVE THAT THE DURACELL SPOKESMAN SAYS CAME AFTER A LOT OF NAILBITING BUT DURACELL SAYS THAT TOYS WILL CONTINUE IN ITS OVERSEAS AD CAMPAIGNS ONE REASON FOR THE OLD CAMPAIGN'S SUCCESS SAY MARKETING EXPERTS IS THAT IT VISUALIZED A PRODUCT'S SUPERIORITY BUT YOU HAVE TO LISTEN TO THESE NEW COMMERCIALS AND THAT'S RISKY SAYS HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONS RESEARCH FIRM THE OLD ADS WITH THE TOYS WERE ENTERTAINING FROM A VISUAL POINT OF VIEW AND WERE EASY FOR PEOPLE TO UNDERSTAND THESE REQUIRE BOTH WATCHING AND LISTENING SAYS MR ROSS IT'S UNFORTUNATE BUT THAT MAY BE TOO MUCH TO ASK OF ADS THESE DAYS JAMES HEEKIN EXECUTIVE VICE PRESIDENT AT WPP GROUP'S J WALTER THOMPSON AND GENERAL MANAGER OF ITS NEW YORK OFFICE IS JUMPING SHIP FOR RIVAL AGENCY MCCANNERICKSON A UNIT OF INTERPUBLIC GROUP MR HEEKIN 44 YEARS OLD WILL BECOME PRESIDENT OF NORTH AMERICAN OPERATIONS AT MCCANN A NEW POSITION REPORTING TO JOHN DOONER 45 PRESIDENT AND CHIEF OPERATING OFFICER OF MCCANNERICKSON WORLDWIDE MR HEEKIN'S DEPARTURE MARKS MCCANN'S SECOND RAID ON TOP TALENT AT THE THOMPSON AGENCY IN RECENT WEEKS LAST MONTH RESEARCH PRODIGY PETER KIM 34 LEFT THOMPSON TO BECOME VICE CHAIRMAN AND CHIEF STRATEGY OFFICER AT MCCANN THOMPSON SAID JAMES PATTERSON AND RON BURNS CHAIRMAN AND CHIEF EXECUTIVE RESPECTIVELY OF THE NORTH AMERICAN OPERATIONS WOULD OVERSEE THE NEW YORK OPERATIONS UNTIL A SUCCESSOR IS NAMED THE BIGGEST US ADVERTISERS INCREASED AD SPENDING A COLLECTIVE 56 IN 1992 FOLLOWING A DECLINE IN 1991 OF 39 ACCORDING TO THE ANNUAL RANKING OF ADVERTISERS BY ADVERTISING AGE THE MAGAZINE RANKS COMPANIES ACCORDING TO THEIR SPENDING ON MEASUREDMEDIA ADVERTISING SUCH AS BROADCAST PRINT AND OUTDOOR AS WELL AS ON UNMEASURED FORMS SUCH AS PROMOTION AND DIRECT MARKETING MEASUREDMEDIA ADVERTISING ROSE NEARLY 6 LAST YEAR BUT THE GROWTH RATE SLOWED TO 39 IN 1993'S FIRST QUARTER ACCORDING TO ADVERTISING AGE PROCTER & GAMBLE REMAINS THE BIGGEST SPENDER AMONG US ADVERTISERS AT 217 BILLION IN 1992 ABOUT THE SAME AMOUNT AS IN 1991 PHILIP MORRIS THE NO 2 ADVERTISER SPENT 202 BILLION IN 1992 DOWN 23 FROM 1991 GENERAL MOTORS THE NO 3 ADVERTISER SPENT 133 BILLION DOWN 75 WHILE THE NO 4 ADVERTISER SEARS ROEBUCK SPENT 12 BILLION UP 2 FINALISTS HOMEBASE A HOME IMPROVEMENT WAREHOUSE CHAIN BASED IN FULLERTON CALIF NAMED FOUR FINALISTS IN THE PITCH FOR THE CREATIVE PORTION OF ITS 15 MILLION TO 20 MILLION ACCOUNT PREVIOUSLY AT THE COLBY AGENCY LOS ANGELES THEY ARE COHEN/JOHNSON AND LORD DENTSU & PARTNERS BOTH OF LOS ANGELES AND KRESSER/CRAIG AND SUISSA MILLER ADVERTISING BOTH OF SANTA MONICA HOMEBASE A UNIT OF WABAN INC SAID CONTENDERS FOR THE MEDIA PORTION HANDLED BY JLP MEDIA NEW YORK HADN'T BEEN DETERMINED 9309290127 930929 PEPPERAND SALT AS ALBERT SCHWEITZER SAID ON THAT POINT I'M UNEQUIVOCALLY AMBIVALENT 9309290126 930929 TECHNOLOGY INTEGRATED SURGICAL'S ROBODOC SACRAMENTO CALIF INTEGRATED SURGICAL SYSTEMS INC SAID THE US FOOD AND DRUG ADMINISTRATION APPROVED CLINICAL TRIALS AT FIVE HOSPITALS FOR ITS ROBOTIC TECHNOLOGY FOR HIP REPLACEMENTS A SPOKESMAN FOR THE CLOSELY HELD COMPANY SAID THE PROCEDURE WILL PERMIT DOCTORS TO MORE CLOSELY ALIGN BONE STRUCTURES DURING ORTHOPEDIC SURGERY ALLOWING FOR MORE RAPID REPLACEMENT TISSUE GROWTH INTEGRATED SURGICAL'S ROBOTIC SYSTEM KNOWN AS ROBODOC WAS INITIALLY TESTED ON A HUMAN PATIENT DURING A HIP REPLACEMENT OPERATION LAST NOVEMBER UP TO 220000 TOTAL HIP REPLACEMENTS ARE PERFORMED ANNUALLY THE COMPANY SAID 9309290125 930929 LAW JUSTICES AGREE TO HEAR CABLE INDUSTRY'S CHALLENGE OF PROGRAMMING REGULATION BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO HEAR THE CABLETELEVISION INDUSTRY'S CHALLENGE TO A 1992 LAW REQUIRING CABLE OPERATORS TO CARRY PROGRAMS OF LOCAL BROADCASTERS THE CABLE INDUSTRY CLAIMS THAT THE SOCALLED MUSTCARRY PROVISIONS OF LAST YEAR'S CABLETV REGULATION LAW VIOLATE THE FIRST AMENDMENT FREEPRESS RIGHTS OF OPERATORS OF CABLE SYSTEMS CONGRESS PASSED THE MUSTCARRY PROVISIONS IN AN EFFORT TO PROTECT LOCAL BROADCASTERS WHICH LAWMAKERS BELIEVED WERE THREATENED BY THE PROFUSION OF OTHER SOURCES OF PROGRAMMING BUT CABLE SHOW PRODUCERS AND CABLE SYSTEM OPERATORS ATTACKED THE REQUIREMENT AS AN UNCONSTITUTIONAL GOVERNMENT INTERFERENCE WITH PROGRAMMING CHOICES THE CABLE INDUSTRY WARNS THAT SOME CABLE PROGRAMMING MAY HAVE TO BE BUMPED FROM CABLE SYSTEM LINEUPS TO ACCOMMODATE LOCAL BROADCASTERS' DEMANDS THE SUPREME COURT'S ANNOUNCEMENT YESTERDAY THAT IT WOULD DECIDE THE CABLETV DISPUTE AND FIVE OTHER CASES WAS HIGHLY UNUSUAL COMING SIX DAYS BEFORE THE OFFICIAL START OF THE 199394 TERM THE JUSTICES ACTED EARLY IN THESE CASES SO THAT THE PARTIES WILL HAVE TIME TO PREPARE FOR ORAL ARGUMENTS THAT ARE EXPECTED TO BE SCHEDULED FOR JANUARY COURT STAFF MEMBERS SAID THE COURT'S RELATIVELY LIGHT DOCKET FOR THE TERM SO FAR MIGHT HAVE LEFT THE JANUARY ARGUMENT CALENDAR BARE IF YESTERDAY'S ANNOUNCEMENT HADN'T BEEN MADE A DECISION IN THE CABLETV CASE IS EXPECTED BY NEXT SUMMER BROADCASTERS WON A PRELIMINARY VICTORY LAST APRIL WHEN A SPECIAL FEDERAL COURT IN WASHINGTON UPHELD THE MUSTCARRY RULES THE LOWER COURT TOOK THE VIEW THAT CONGRESS WAS REGULATING A MARKET IN A COMMERCIAL COMMODITY NOT A MARKET IN SPEECH THE SPECIAL COURT SAID THAT CONGRESS POSSESSES BROAD AUTHORITY TO REGULATE COMMERCIAL ACTIVITY AND THAT THE JUDICIARY ORDINARILY WON'T SECONDGUESS ECONOMIC LEGISLATION THE COURT ALSO SAID THAT CONGRESS HADN'T TRIED TO DICTATE THE CONTENT OF CABLE PROGRAMMING THE LOWER COURT'S RULING WAS APPEALED TO THE SUPREME COURT BY A GROUP INCLUDING TURNER BROADCASTING SYSTEM INC WHICH OWNS CABLE NEWS NETWORK TNT AND THE WTBS SUPERSTATION DANIELS CABLEVISION INC DISCOVERY COMMUNICATIONS INC AND TIME WARNER INC THE CABLE COMPANIES SAID THAT AS BUSINESSES PROVIDING NEWS INFORMATION AND ENTERTAINMENT THEY DESERVE THE BROAD PROTECTION AFFORDED THE PRESS UNDER THE FIRST AMENDMENT IN A 1991 RULING THE SUPREME COURT REFERRED TO CABLE OPERATORS AS PART OF THE PRESS BUT LEFT UNCLEAR PRECISELY WHAT PROTECTION THIS AFFORDED THE INDUSTRY THE CABLE COMPANIES ASSERTED THAT CONGRESS HAD TRIED IMPROPERLY TO CONTROL THE EDITORIAL CHOICES MADE BY CABLE OPERATORS SO THAT PROGRAMMING PREFERRED BY LAWMAKERS WILL GAIN THE LARGEST POSSIBLE AUDIENCE SEPARATELY THE HIGH COURT AGREED TO DECIDE WHETHER A STATE MAY IMPOSE AN OTHERWISE UNCONSTITUTIONAL FEE ON DISPOSAL OF OUTOFSTATE TRASH IF THE LEVY IS RELATED TO THE STATE'S ACTUAL REGULATORY COSTS THE CONSTITUTION'S PROTECTION OF INTERSTATE COMMERCE GENERALLY PROHIBITS STATES FROM IMPOSING FEES OR TAXES ON INTERSTATE BUSINESS ACTIVITY THAT AREN'T APPLIED TO SIMILAR INSTATE ACTIVITY IN 1992 FOR EXAMPLE THE SUPREME COURT SAID ALABAMA IMPROPERLY TAXED THE DISPOSAL OF WASTE GENERATED OUTSIDE OF THE STATE MORE HEAVILY THAN THE DISPOSAL OF WASTE FROM WITHIN THE STATE 9309290124 930929 STOCKS EXDIVIDEND SEPTEMBER 30 BROOKE GROUP LTD DIDN'T TRADE EXDIVIDEND ON THE NEW YORK STOCK EXCHANGE YESTERDAY AS REPORTED IN WEDNESDAY'S CORPORATE DIVIDEND COLUMN BECAUSE THE COMPANY POSTPONED ITS DISTRIBUTION OF ONE SHARE OF SKYBOX INTERNATIONAL FOR EACH BROOKE SHARE HELD 9309290123 930929 BELL CANADA TO CUT PERSONNEL COSTS CAPITAL OUTLAYS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL BELL CANADA SQUEEZED BY REGULATORS' REFUSAL TO RAISE LOCAL TELEPHONE RATES AND INTENSIFYING LONGDISTANCE COMPETITION ANNOUNCED PLANS TO SLASH PERSONNEL AND CAPITAL SPENDING NEXT YEAR CANADA'S LARGEST TELEPHONE UTILITY SAID IT WILL CUT 466 MILLION CANADIAN DOLLARS 3514 MILLION THROUGH SUCH STEPS AS SHORTENING WORK HOURS OFFERING SEVERANCE INCENTIVES AND FREEZING MANAGEMENT SALARIES THEY ARE INTENDED TO PRODUCE SAVINGS EQUIVALENT TO REMOVING 5000 PEOPLE FROM BELL'S WORK FORCE OF 46000 BELL'S OPERATING BUDGET FOR 1994 HAD BEEN ESTIMATED AT C56 BILLION THE COMPANY SAID IT WILL SEEK TO AVOID LAYOFFS BELL CANADA ALSO WILL PARE C300 MILLION FROM ITS 1994 CAPITAL BUDGET PREVIOUSLY PROJECTED AT C205 BILLION THE STOCK OF BELL CANADA'S PARENT BCE INC A MONTREAL TELECOMMUNICATIONS CONCERN CLOSED AT 3375 DOWN 25 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOLLOWING THE ANNOUNCEMENT ROBERT KEARNEY BELL CANADA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE MEASURES SHOULD ENABLE BELL TO ACHIEVE AN 11 RATE OF RETURN NEXT YEAR THE RATE WOULD HAVE BEEN AROUND 9 HE SAID REGULATORS RECENTLY SET BELL'S ALLOWABLE RETURN ON COMMON EQUITY AT 11 TO 12 DOWN FROM 1225 TO 1325 SET IN 1988 MR KEARNEY IN AN INTERVIEW SAID THE COMPANY ALSO WILL MOVE TO SEPARATE THE LOCAL UTILITY BUSINESS FROM THE COMPETITIVE BUSINESSES WITHIN BELL CANADA THAT COULD MEAN FOR EXAMPLE SETTING LONGDISTANCE OPERATIONS APART FROM LOCAL SERVICE BELL CANADA WHICH SERVES MORE THAN SEVEN MILLION CUSTOMERS IN ONTARIO AND QUEBEC TRADITIONALLY HAS USED LONGDISTANCE PROFITS TO SUBSIDIZE LOCAL SERVICE WHICH IT SAID LOSES MONEY THE CANADIAN GOVERNMENT OPENED THE LONGDISTANCE MARKET TO COMPETITION IN 1990 THAT HAS CUT INTO BELL'S LONGDISTANCE EARNINGS WE HAVE TO MOVE AWAY FROM THE NOTION THAT BUSINESS A' IN AN OPEN AND COMPETITIVE WORLD CAN SOMEHOW SUBSIDIZE BUSINESS B' MR KEARNEY SAID THE COSTCUTTING IS LIKELY TO AFFECT SOME LOCAL SERVICES MR KEARNEY ACKNOWLEDGED THERE WILL COME A POINT WHERE SOMEBODY'S GOING TO HAVE TO WAIT FOR SERVICE LONGER THAN HE OTHERWISE WOULD HAVE HE SAID BUT BELL WILL SEEK TO MAKE SURE THAT OUR HIGHVALUE CUSTOMERS DON'T GET ANNOYED WITH US BELL CANADA HAD SIGNALED THAT CUTBACKS WERE LIKELY FOLLOWING THE CANADIAN RADIOTELEVISION AND TELECOMMUNICATIONS COMMISSION'S DECISION LAST MONTH TO REJECT ITS PROPOSAL TO INCREASE BASIC LOCAL RATES FOR THE FIRST TIME IN 10 YEARS THE PANEL CONTENDED THAT BELL HAD UNDERESTIMATED EARNINGS WHILE OVERESTIMATING EXPENSES 9309290122 930929 BUSINESS BRIEF HEXCEL CORP RESTRUCTURING LED TO CHARGE WRITEDOWN IN THIRD PERIOD HEXCEL CORP OF PLEASANTON CALIF SAID IT WILL TAKE A THIRDQUARTER CHARGE OF 50 MILLION AND A 28 MILLION WRITEDOWN FOR DISCONTINUED OPERATIONS AS PART OF ITS EXPANDED RESTRUCTURING THE COMPANY WHICH MAKES COMPOSITE MATERIALS FOR THE AEROSPACE INDUSTRY ALSO SAID IT IS IN TECHNICAL DEFAULT ON ITS FINANCING AGREEMENTS AND IS DISCUSSING WITH ITS LENDERS WAIVERS OF CERTAIN LOAN COVENANTS HEXCEL SAID IT IS ALSO SEEKING 34 MILLION IN NEW FINANCING TO COMPLETE THE RESTRUCTURING BEGUN LAST YEAR COMPANY OFFICIALS SAID THEY EXPECT THE RESTRUCTURING TO TAKE THREE YEARS HEXCEL SAID IT PLANS TO CUT ITS CAPACITY AND LAY OFF ADDITIONAL WORKERS IN JUNE HEXCEL CUT ITS WORK FORCE BY 5 OR ABOUT 135 PEOPLE 9309290121 930929 BUSINESS BRIEF MCI COMMUNICATIONS CORP MERRILL LYNCH & CO EXTENDS TELECOMMUNICATIONS ACCORD MCI COMMUNICATIONS CORP WASHINGTON SAID MERRILL LYNCH & CO EXTENDED ITS TELECOMMUNICATIONS CONTRACT WITH MCI IN AN AGREEMENT VALUED AT 125 MILLION THE AGREEMENT FOR DOMESTIC AND INTERNATIONAL TELECOMMUNICATIONS SERVICES EXTENDS MCI'S 1989 CONTRACT WITH THE NEW YORK SECURITIES FIRM BY 3 1/2 YEARS MCI WILL CONTINUE TO BE MERRILL LYNCH'S PRIMARY TELECOMMUNICATIONS PROVIDER FOR A WIDE RANGE OF SERVICES INCLUDING A VIRTUAL PRIVATE NETWORK OF SERVICES THAT CONNECTS MERRILL LYNCH'S DOMESTIC OFFICES AND MANY OF ITS INTERNATIONAL LOCATIONS 9309290120 930929 RULE OF LAW HEALTH CARE REFORM V THE FOUNDERS BY DAVID B RIVKIN JR THE PRESIDENT HAS ANNOUNCED HIS HEALTH CARE PLAN AND CONGRESSIONAL REPUBLICANS HAVE ANNOUNCED THEIRS ALTHOUGH THE DETAILS ARE STILL MURKY THE PLANS SEEM TO SHARE ONE FUNDAMENTAL ASSUMPTION THAT EVERY MAN WOMAN AND CHILD IN THE US MUST PARTICIPATE IN THE SYSTEM THE HEALTHY MUST SUBSIDIZE THE SICK THE YOUNG MUST SUBSIDIZE THE OLD THE NOT SO OLD MUST SUBSIDIZE THE VERY YOUNG IF THIS REDISTRIBUTION OF WEALTH IS TO WORK WITHOUT NEW TAXES AND NO ONE WANTS TO ADMIT THAT NEW TAXES MIGHT BE NECESSARY THEN EVERYONE MUST BE IN THE PLAN WHERE EXACTLY DOES THE US GOVERNMENT GET THE POWER TO REQUIRE THAT EVERY ONE OF ITS CITIZENS MUST PARTICIPATE IN A GOVERNMENTSPONSORED HEALTH CARE PLAN ASK THIS OF A HEALTH CARE REFORMER AND HE OR SHE WILL SNIFF THINK A MOMENT AND IF LEGALLY TRAINED WILL IMMEDIATELY UTTER THE TWO MOST MAGIC WORDS IN LATE 20TH CENTURY CONSTITUTIONAL JURISPRUDENCECOMMERCE CLAUSE IF THE LEGALITY OF A HEALTH CARE PACKAGE FEATURING FEDERALLY MANDATED UNIVERSAL PARTICIPATION IS LITIGATED AND WE CAN BET IT WILL BE AND THE SYSTEM IS UPHELD IT WILL MARK THE FINAL EXTENSION OF THIS ORIGINALLY MODEST GRANT OF FEDERAL AUTHORITY THEREAFTER CONGRESS WILL BE ABLE TO REGULATE YOU NOT BECAUSE OF WHO YOU ARE WHAT YOU DO FOR A LIVING OR WHETHER YOU USE THE INTERSTATE HIGHWAYS BUT MERELY BECAUSE YOU EXIST THIS WAS NOT OF COURSE THE ORIGINAL PLAN ONE OF THE FUNDAMENTAL TENETS UNDERLYING THE CONSTITUTION OF 1787 WAS THAT THE FEDERAL GOVERNMENT WAS A GOVERNMENT OF LIMITED POWERS UNLIKE THE STATES WHICH HAD MORE GENERAL AUTHORITY TO REGULATE THEIR CITIZENS THE FEDERAL GOVERNMENT WAS TO BE LIMITED TO THOSE POWERS FOUND WITHIN THE FOUR CORNERS OF THE CONSTITUTION IN PARTICULAR CONGRESS COULD EXERCISE ONLY THAT AUTHORITY SPECIFICALLY GRANTED TO IT BY THE PEOPLE AND THE STATES THERE WAS A LIST AND NOT A VERY LONG LIST ONE OF THE POWERS ENUMERATED ON IT WAS THE POWER TO REGULATE COMMERCE WITH FOREIGN NATIONS AND AMONG THE SEVERAL STATES ONE OF THE MOST SERIOUS DEFICIENCIES OF THE FIRST UNION UNDER THE ARTICLES OF CONFEDERATION WAS THAT STATES WERE ABLE TO ERECT BARRIERS TO TRADE WITH OTHER STATES AND FOREIGN COUNTRIES THE COMMERCE CLAUSE WAS ADDED TO THE CONSTITUTION SO THAT CONGRESS COULD CREATE THE ORIGINAL NORTH AMERICAN FREE TRADE ZONE WITHIN THE US ITSELF THE COMMERCE POWER IN THE BATTERED CONSTITUTION THAT EMERGED FROM THE 1930S AND 1940S HOWEVER WAS VERY DIFFERENT AFTER BEING ROUTED BY PRESIDENT ROOSEVELT AND HIS CONGRESS THE SUPREME COURT FLED TO THE COMMERCE CLAUSE FINDING THERE A WAY TO AVOID TREADING UPON THE VITAL INTERESTS OF A CONGRESS DETERMINED TO REGULATE THE ECONOMIC RELATIONSHIPS OF THE CITIZENRY NOT TO MENTION ITS HEALTH WELFARE AND SAFETY IN WICKARD V FILBURN IN 1942 THE COURT WENT SO FAR AS TO RULE THAT CONGRESS COULD PREVENT A FARMER FROM GROWING WHEAT FOR HIS OWN CONSUMPTION TOO MUCH OF AN EFFECT ON COMMERCE REASONED THE COURT THIS FELLOW GOBBLING WHEAT HE GREW HIMSELF AFTER ALL HE COULD HAVE PURCHASED IT INTERSTATE ON THAT DAY THE FRAMERS' GHOSTS WEPT OF COURSE THE COMMERCE POWER WAS STILL IN THEORY LIMITED IN WICKARD AFTER ALL THE MAN AT LEAST WAS A FARMER SOMEONE ENGAGED IN GROWING AND SELLING FOODSTOCKS COMMERCE WAS IN THE AIR SOMEWHERE AND THE COURT CONTINUED TO PAY AT LEAST LIP SERVICE TO THE NOTION THAT THE FEDERAL GOVERNMENT IS A GOVERNMENT OF LIMITED AUTHORITY AND THAT CONGRESS CAN REGULATE ONLY BASED UPON SOME NEXUS TO INTERSTATE COMMERCE OR IN REFERENCE TO ONE OF ITS OTHER ENUMERATED POWERS LIKE THE POWER TO TAX AND SPEND SO LONG AS CONGRESS PROVIDES A REASONABLE EXPLANATION OF THAT NEXUS ITS ACTIONS WILL BE UPHELD THE LIMITS OF THE CONTEMPORARY COMMERCE CLAUSE ARE NOT VERY CLEAR BUT MOST WOULD AGREE THERE ARE SOME LIMITS THE FINAL TEST HOWEVER HAS COME IN THE NEW HEALTH CARE SYSTEM INDIVIDUALS WILL NOT BE FORCED TO BELONG BECAUSE OF THEIR OCCUPATION EMPLOYMENT OR BUSINESS ACTIVITIES AS IN THE CASE OF SOCIAL SECURITY THEY WILL BE DRAGOONED INTO THE SYSTEM FOR NO OTHER REASON THAN THAT THEY ARE PEOPLE WHO ARE HERE IF THE COURTS UPHOLD CONGRESS'S AUTHORITY TO IMPOSE THIS SYSTEM THEY MUST ONCE AND FOR ALL DRAW THE CURTAIN ON THE CONSTITUTION OF 1787 AND ADMIT THAT THERE IS NOTHING THAT CONGRESS CANNOT DO UNDER THE COMMERCE CLAUSE THE POLITE FICTION THAT WE LIVE UNDER A GOVERNMENT OF LIMITED POWERS MUST BE DISCARDED LEVIATHAN MUST BE EMBRACED THE IMPLICATIONS OF THIS FINAL EXTENSION OF THE COMMERCE POWER ARE FRIGHTENING IF CONGRESS CAN REGULATE YOU BECAUSE YOU ARE THEN IT CAN DO ANYTHING TO YOU NOT FORBIDDEN BY THE HANDFUL OF RESTRAINTS CONTAINED IN THE BILL OF RIGHTS FOR EXAMPLE IF CONGRESS THINKS AMERICANS ARE TOO FAT MANY ARE AND THAT THIS SOMEHOW WILL AFFECT INTERSTATE COMMERCE WHO'S TO SAY IT DOESN'T CAN IT NOT DECREE THAT AMERICANS SHALL LOSE WEIGHT INDEED UNDER THE NEW SYSTEM ANY ACTIVITY THAT MIGHT INCREASE THE COSTS OF HEALTH CARE MIGHT BE REGULATABLE IF INDIVIDUALS CAN BE REGULATED BECAUSE OF THEIR HEALTH THEN SURELY ANY ACTIVITY WITH AN IMPACT ON HEALTH ALSO CAN BE REGULATED PERHAPS ONE DAY IT WILL BE DECIDED THAT EVERY MEMBER OF THE NEW HEALTH CARE SYSTEM EVERYBODY WILL BE TESTED FOR THE HIV VIRUS AFTER ALL YOUR HIV STATUS AFFECTS YOUR HEALTH THE COSTS OF HEALTH CARE AND THUS INTERSTATE COMMERCE IF A MANDATORY FEDERAL HEALTH SYSTEM IS JUSTIFIED UNDER A COMMERCE CLAUSE ANALYSIS THEN ANY REGULATION OF ANY HEALTHRELATED ACTIVITY ALSO CAN BE JUSTIFIED WOULD THE BILL OF RIGHTS INTERVENE MAYBE AND MAYBE NOT THERE IS NO SPECIFIC RIGHT TO EAT WHEN AND HOW YOU LIKE THERE IS NO SPECIFIC RIGHT NOT TO UNDERGO MEDICAL TESTING THE RIGHT AGAINST UNREASONABLE SEARCHES AND SEIZURES PERHAPS WHAT ABOUT THE RIGHT TO PRIVACY IT'S BEEN OVERUSED BUT MAYBE THE SUPREME COURT MIGHT WELL LOOK INTO ITS PENUMBRA CRYSTAL AND FIND THE NECESSARY LIMITATIONS AND MAYBE IT WON'T ONE THING IS CLEAR ONCE CONGRESS'S POWER IS EXTENDED TO EVERY INDIVIDUAL NOT BECAUSE OF HIS ACTIVITIES BUT BECAUSE HE IS LIMITS ON ITS POWER WILL DEPEND UPON THE FORTITUDE AND CREATIVITY OF THE COURTS NO AMERICAN WHATEVER HIS POLICY VIEWS ON HEALTH CARE REFORM SHOULD REJOICE AT THE DISAPPEARANCE OF THE LAST FRAGMENTS OF THE PRINCIPLE THAT THE FEDERAL GOVERNMENT IS ONE OF LIMITED POWERS IT IS INDEED IRONIC AND SAD THAT AS THE REST OF THE WORLD IS DISCOVERING THE VIRTUES OF LIMITING THEIR GOVERNMENTS THE US SEEMS HELLBENT ON UNLEASHING ITS OWN MR RIVKIN AN ADJUNCT FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE SERVED IN THE REAGAN AND BUSH ADMINISTRATIONS LEE A CASEY ALSO A FORMER REAGAN AND BUSH OFFICIAL COLLABORATED ON THCLE 9309290119 930929 WHO'S NEWS PROVIDENT LIFE & ACCIDENT INSURANCE CO PROVIDENT LIFE & ACCIDENT INSURANCE CO CHATTANOOGA TENN HUGH B JACKS 59 YEARS OLD WILL SERVE AS INTERIM CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS HEALTH AND ACCIDENT INSURANCE CONCERN WHILE THE COMPANY SEARCHES FOR A SUCCESSOR TO WINSTON W WALKER 49 WHO AS PREVIOUSLY REPORTED WILL RESIGN FRIDAY MR JACKS A PROVIDENT BOARD MEMBER AND BUSINESS CONSULTANT PREVIOUSLY SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF BELLSOUTH SERVICES A UNIT OF BELLSOUTH CORP 9309290118 930929 ECONOMY OPEC'S PUSH FOR NEW PACT IS SLOWED BY IRAN KUWAIT GENEVA A PUSH BY OPEC TO CONCLUDE A PRODUCTION PACT SLOWED AS OIL MINISTERS BARGAINED OVER HOW MUCH IRAN AND KUWAIT SHOULD BE ALLOWED TO PRODUCE BOTH COUNTRIES REJECTED THE PRODUCTION ALLOCATIONS OFFERED THEM YESTERDAY AS THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ATTEMPTED TO ALLOCATE SHARES OF THEIR NEW PRODUCTION CEILING OF 245 MILLION BARRELS A DAY OR LESS IF IRAN AND KUWAIT DON'T SHOW SOME FLEXIBILITY WE ARE RUNNING TOWARD A DEADLOCK A SENIOR OPEC DELEGATE SAID DESPITE THE SETBACK OPEC MINISTERS SAID THEY STILL INTENDED TO COME UP WITH A CREDIBLE AGREEMENT NO MATTER HOW MUCH TIME IT TOOK WE ARE WORKING VERY VERY HARD BELIEVE ME SAID HISHAM NAZER SAUDI ARABIA'S OIL MINISTER THE PURPOSE OF THE NEW CEILING AGREED TO ON MONDAY IS TO CURB OPEC'S OVERPRODUCTION WHICH HAS LED TO RECENT THREEYEAR LOWS IN OIL PRICES PRICES ALREADY HAVE RECOVERED SOMEWHAT RECENTLY ON RISING EXPECTATIONS THAT OPEC IS FINALLY COMING TO GRIPS WITH ITS RUNAWAY PRODUCTION FUTURES PRICES GENERALLY WERE HIGHER AGAIN YESTERDAY 9309290117 930929 WHO'S NEWS FUTURE HEALTHCARE INC FUTURE HEALTHCARE INC CINCINNATI DONNA J MYERS 33 YEARS OLD EXECUTIVE VICE PRESIDENT WAS ELECTED A DIRECTOR INCREASING THE BOARD SIZE TO SEVEN MEMBERS FUTURE HEALTHCARE PROVIDES CLINICAL TRIAL SERVICES TO THE PHARMACEUTICAL INDUSTRY 9309290116 930929 WHO'S NEWS LYMAN TO LEAVE BOARD OF IBM AFTER 14 YEARS ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID LONGTIME DIRECTOR RICHARD W LYMAN WILL RETIRE AFTER MORE THAN 14 YEARS ON THE COMPUTER CONCERN'S BOARD EFFECTIVE SEPT 30 MR LYMAN 69 YEARS OLD BECOMES THE FIFTH BOARD MEMBER TO STEP DOWN SINCE JOHN AKERS RESIGNED AND LOUIS V GERSTNER WAS NAMED CHAIRMAN EARLIER THIS YEAR MR LYMAN IS A MEMBER OF THE BOARD'S AUDIT COMMITTEE AS PRESIDENT EMERITUS OF STANFORD UNIVERSITY MR LYMAN WAS ONE OF THREE COLLEGE OFFICIALS ON THE IBM BOARD ALONG WITH NANNERI O KEOHANE PRESIDENT OF WELLESLEY COLLEGE AND JOHN B SLAUGHTER PRESIDENT OF OCCIDENTAL COLLEGE IBM WILL HAVE 14 BOARD MEMBERS WHEN MR LYMAN STEPS DOWN THE COMPANY IS AUTHORIZED TO HAVE A BOARD AS LARGE AS 25 MEMBERS BUT A SPOKESMAN SAID IBM HAD NO IMMEDIATE PLANS TO NAME ANY NEW DIRECTORS 9309290115 930929 WORLD MARKETS TOKYO EQUITIES REBOUND ON BARGAINHUNTING LONDON SHARES CLIMB ON OPTIMISM FOR RATE CUTS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ROSE TUESDAY REBOUNDING FROM THE PREVIOUS DAY'S DIVE DESPITE A LACK OF FRESH INCENTIVES LONDON SHARES CLIMBED BUT ENDED OFF THE SESSION'S HIGHS AS MOMENTUM SLOWED IN LATE DEALINGS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11180 UP 064 REFLECTING INCREASES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND FLAT AMERICAN MARKETS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 21533 UP 567 OR 27 WITH AVNET OF THE US POSTING A 5 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 6802 DOWN 069 OR 1 WITH BIOMIRA OF CANADA SLIDING 55 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 21342 POINTS MONDAY ROSE 7861 TO 2017272 ON WEDNESDAY THE NIKKEI INDEX FELL 18922 POINTS TO CLOSE THE MORNING SESSION AT 1998350 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES UP FROM 2006 MILLION SHARES A DAY EARLIER GAINERS TOPPED LOSERS 529445 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1100 POINTS MONDAY ADDED 271 TO 162307 BARGAINHUNTING HELPED ELEVATE THE NIKKEI EARLY IN THE DAY BUT PROFITTAKING AND ARBITRAGERS UNWINDING OF POSITIONS CAPPED SOME OF THE INDEX'S INTRADAY GAINS PHARMACEUTICALS RETAILERS SERVICE INDUSTRIES CONSUMER CREDIT AND FOOD COMPANIES FOUND CONTINUED SUPPORT ENABLING THEM TO ADD TO GAINS THEY MADE IN THE PREVIOUS SESSION BUT STEELMAKERS AND SHIPBUILDERS WEAKENED THE JAPANESE GOVERNMENT PREDICTED CRUDE STEEL PRODUCTION FOR THE QUARTER ENDING DEC 31 WILL FALL 37 FROM A YEAR EARLIER TOKYO PARTICIPANTS WERE ENCOURAGED AND RELIEVED BY THE BUYING THAT HELPED THE NIKKEI AVOID FALLING AGAIN TO 20000 OR LOWER BUT THE MARKET MOOD WAS TINGED BY CAUTION AS SOME STOCKS HIT RECORD HIGHS TUESDAY AND SOME INVESTORS FEARED THE BUYING MIGHT BE TEMPORARY MOREOVER THE CURRENT ATTRACTIVENESS OF THE BOND MARKET HAS KEPT LARGE AMOUNTS OF MONEY FROM GOING INTO THE STOCK MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 106 POINTS TO 30369 THE FT30 INDEX CLIMBED 81 POINTS TO 23295 VOLUME WAS 6032 MILLION SHARES UP FROM 5409 MILLION SHARES A DAY EARLIER HOPES OF LOWER INTEREST RATES CONTINUED TO UNDERPIN LONDON'S GAINS AND SOME STOCKS WITH A HEAVY WEIGHTING IN THE FT100 RALLIED HELPING TO KEEP THE INDEX IN POSITIVE TERRITORY BUT A WEAK US STOCKMARKET OPENING ERODED SOME OF THE EUPHORIA IN LONDON AND EQUITIES LOST SOME LUSTER WITH LITTLE VOLUME BUILDING UP DESPITE THIS WEEK'S PRICE GAINS THE MARKET'S RESILIENCE BEGAN TO WEAKEN THOUGH SENTIMENT APPEARED TO WAVER TOWARD THE CLOSE A SELLOFF WASN'T EXPECTED ANYTIME SOON WITH THE END OF THE THIRD QUARTER APPROACHING INSTITUTIONAL INVESTORS WEREN'T EXPECTED TO PURSUE ANY HEAVY LIQUIDATION OF POSITIONS IN FRANKFURT STOCK PRICES FINISHED LARGELY UNCHANGED IN NERVOUS LOWVOLUME DEALINGS THE DAX 30STOCK INDEX WHICH GAINED 2632 POINTS MONDAY EDGED UP 143 POINTS TO 191361 ADVANCING ISSUES LED RETREATING ISSUES 219 BUYING WAS SELECTIVE REACTION TO FOUR WESTERN GERMAN STATES' CONSUMERPRICE DATA USED TO COMPILE PRELIMINARY INFLATION FIGURES WAS MIXED IN PARIS SHARES CHALKED UP GAINS FOR THE THIRD SESSION IN A ROW AS OPTIMISM ABOUT LOWER INTEREST RATES CONTINUED TO BUOY THE MARKET WHICH ALSO WAS HELPED BY BULLISHNESS THAT IS TYPICAL AT THE BEGINNING OF A NEW MONTHLY TRADING PERIOD THE OCTOBER ACCOUNT BEGAN LAST FRIDAY THE EXCHANGE ALSO GOT A BOOST FROM A STRENGTHENING IN THE FRENCH TREASURYS MARKET WHICH TOO HAS BEEN SUPPORTED RECENTLY BY AN EXPECTED EASING OF MONETARY POLICY IN AMSTERDAM EQUITIES GAVE UP STRONG EARLY GAINS ON THIN TURNOVER TO CLOSE MIXED TO LOWER AS AN EARLY WEAKNESS ON WALL STREET AND THE DOLLAR'S SLIPPAGE WEIGHED ON THE DUTCH MARKET IN MILAN STOCKS ROSE BUT ENDED OFF THE SESSION'S HIGHS LOSING GROUND ON WORRIES ABOUT CORPORATE MOVES SUCH AS A POTENTIAL SALE AND BIG CAPITAL INCREASE IN MADRID STOCKS JUMPED AS BLUE CHIPS PUT IN A STRONG PERFORMANCE ISSUES THAT ALSO TRADE IN NEW YORK WERE BOOSTED BY THE DOLLAR'S GAINS ON THE SPANISH PESETA WHICH ENCOURAGED MADRID INVESTORS TO MOVE INTO DOMESTIC STOCKS IN ZURICH FOLLOWING THE MARKET'S RECENT RUNUP SHARE PRICES CONSOLIDATED AND FINISHED LITTLE CHANGED WITH ACTIVITY MAINLY STEMMING FROM FUTURESRELATED BUSINESS INVESTORS WERE STILL WORRIED ABOUT THE RUSSIAN POLITICAL STANDOFF THOUGH THE SWISS MARKET'S TONE REMAINED POSITIVE BECAUSE OF THE COUNTRY'S ECONOMIC FUNDAMENTALS IN STOCKHOLM SHARES WERE MIXED TO HIGHER AFTER A POSITIVE OPENING FIZZLED BECAUSE OF RISING SWEDISH INTEREST RATES IN BRUSSELS SHARES ENDED MOSTLY HIGHER IN MUTED VOLUME AS BUYING RESUMED FOLLOWING NERVOUS SELLING BECAUSE OF WALL STREET'S DOWNTURN AND RUSSIA'S POLITICAL UNCERTAINTIES IN SEOUL SHARE PRICES ENDED HIGHER EVEN THOUGH REPORTS INDICATED THAT THE SOUTH KOREAN ECONOMY REMAINED STAGNANT IN AUGUST DESPITE GOVERNMENT EFFORTS TO REVIVE IT 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 9309290114 930929 INTERNATIONAL BARCLAYS TO CUT CREDIT CARD STAFF LONDON BARCLAYS PLC SAID ITS CREDITCARD DIVISION BARCLAYCARD WILL REDUCE ITS STAFF BY 400 BY MID1994 THROUGH VOLUNTARY LAYOFFS BARCLAYCARD SAID ITS WORKERS HAVE BEEN NOTIFIED AND DISCUSSIONS ARE TAKING PLACE WITH BANKING UNIONS THE UNIT EMPLOYS 4835 PEOPLE THE ANNOUNCEMENT FOLLOWS A REVIEW OF THE CARD UNIT'S OVERHEAD COSTS THE REVIEW'S FINDINGS ALSO COME AT A TIME OF INCREASED COMPETITION IN THE UK CARD MARKET FROM BOTH BRITISH AND FOREIGNOWNED BUSINESSES THE BRITISH BANK HOLDING COMPANY SAID 9309290113 930929 TECHNOLOGY P&G TO BUY SMITHKLINE UNIT CINCINNATI PROCTER & GAMBLE CO SAID IT AGREED TO BUY SMITHKLINE & FRENCH SPA AN ITALIAN SUBSIDIARY OF SMITHKLINE BEECHAM PLC TERMS WEREN'T DISCLOSED PROCTER WILL ACQUIRE FIVE PHARMACEUTICAL PRODUCTS IN THE TRANSACTION WITH ANNUAL SALES OF 40 MILLION THE PRODUCTS INCLUDE THREE ANTIBIOTICS A TREATMENT FOR OSTEOPOROSIS AND AN ANTIINFLAMMATORY PRODUCT FOR RELIEF OF RHEUMATOID AND OSTEOARTHRITIS PROCTER CURRENTLY HAS ANNUAL SALES OF ABOUT 304 BILLION 9309290112 930929 BUSINESS BRIEF CRYSTAL BRANDS INC JONES APPAREL AGREES TO BUY EVANPICONE TRADEMARKS CRYSTAL BRANDS INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS EVANPICONE TRADEMARKS TO JONES APPAREL GROUP INC FOR 305 MILLION AND CERTAIN CASH PAYMENTS IN THE FUTURE THE SOUTHPORT CONN COMPANY SAID THE FUTURE PAYMENTS WILL BE A PERCENTAGE OF THE SALES OF EVANPICONE WOMEN'S WEAR PRODUCTS CRYSTAL BRANDS SAID IT RECENTLY RECEIVED ANTITRUST AND OTHER FEDERAL APPROVALS FOR THE SALE CRYSTAL BRANDS PRODUCES SPORTSWEAR FOR MEN AND BOYS UNDER THE BRAND NAMES GANT SALTY DOG AND IZOD AND COSTUME JEWELRY UNDER VARIOUS BRAND NAMES JONES APPAREL BASED IN NEW YORK MAKES WOMEN'S SPORTSWEAR DRESSES AND SUITS 9309290111 930929 BUSINESS BRIEF PHILIP MORRIS COS KRAFT UNIT CONSIDERS SALE OF BIRDS EYE FOOD BUSINESS KRAFT GENERAL FOODS A UNIT OF NEW YORK'S PHILIP MORRIS COS SAID IT IS CONSIDERING THE SALE OF ITS BIRDS EYE FROZEN VEGETABLES AND FRUITS BUSINESS AND IS TALKING WITH SEVERAL POTENTIAL BUYERS THIS MONTH KRAFT GLENVIEW ILL AGREED TO SELL ANOTHER FROZENFOODS UNIT ITS BREYERS ICE CREAM BUSINESS TO UNILEVER NV AN ANGLODUTCH CONSUMERPRODUCTS COMPANY FOR AN ESTIMATED 300 MILLION THE BIRDS EYE BUSINESS WHICH HAS ESTIMATED ANNUAL SALES OF 300 MILLION AND EMPLOYS 900 PEOPLE IS BASED IN ORANGE CALIF AND HAS PRODUCTION FACILITIES IN MINNESOTA NEW YORK AND MEXICO 9309290110 930929 UNEMPLOYMENT RISES IN FINLAND HELSINKI FINLAND'S AUGUST JOBLESS RATE WAS 178 UP FROM 175 THE PREVIOUS MONTH AND 136 IN AUGUST 1992 THE CENTRAL STATISTICAL OFFICE SAID THE GOVERNMENT ALSO REPORTED THAT IN 1992 BANKRUPTCIES TOTALED 7300 AN INCREASE OF 17 FROM THE PREVIOUS YEAR THIS YEAR BANKRUPTCIES CONTINUED TO GROW AT LAST YEAR'S LEVEL AND NUMBERED 3577 FROM JANUARY TO JUNE THE STATISTICS BUREAU SAID FINLAND'S JOBLESS RATE REACHED A POSTWORLD WAR II HIGH IN JUNE WITH 181 OF THE LABOR FORCE OUT OF WORK 9309290109 930929 LEISURE & ARTS ART OF THE AMERICAS GETS NEW MUSEUM BY WILLARD SPIEGELMAN DALLAS WHILE ROSS PEROT ARGUABLY THIS CITY'S MOST FAMOUS RESIDENT HAS BEEN OUT CAMPAIGNING AGAINST NAFTA AN ECONOMIC AGREEMENT BASED ON THE PREMISE THAT WE ARE A CONTINENT WITHOUT BOUNDARIES HIS HOMETOWN HAS JUST OPENED A MUSEUM THAT OPERATES ON THAT VERY ASSUMPTION IN A TRADITIONAL NATIVE AMERICAN CEREMONY LED BY FOUR HOLY MEN REPRESENTING THE POINTS OF THE COMPASS AND THE ELEMENTS OF NATURE THE DALLAS MUSEUM OF ART DEDICATED THE NANCY AND JAKE L HAMON BUILDING ON SUNDAY AND AFFIRMED ITS OWN AESTHETIC VERSION OF FREE TRADE THE NEW BUILDING INCREASED THE DMA'S EXHIBITION SPACE BY 140000 SQUARE FEET MORE SIGNIFICANT THAN THE MERE FACT OF PHYSICAL GROWTH HOWEVER WAS THE DECISION TO RETHINK THE ENTIRETY OF THE MUSEUM'S HOLDINGS THE HAMON BUILDING NOW HOUSES A UNIQUE MUSEUM OF THE AMERICAS A WHOLE FLOOR CONTAINING ALMOST 4000 PIECES OF ART THAT RANGE FROM PRECOLUMBIAN OBJECTS TO AMERICAN MODERNIST PAINTINGS THE ORIGINAL SLEEK 1984 LIMESTONE BUILDING BY EDWARD LARRABEE BARNES WILL SOON ENCOMPASS THE SEPARATE MUSEUMS OF AFRICA ASIA AND EUROPE REARRANGEMENTS OF THE DMA'S COLLECTIONS IN THOSE AREAS AND THE MUSEUM OF CONTEMPORARY ART EXCEPT IN THE LAST CASE GEOGRAPHIC AND CULTURAL CONTEXTS WILL DETERMINE ARTISTIC JUXTAPOSITIONS ARCHITECTURALLY THE BUILDING IS A STUNNER MR BARNES RETURNED TO HIS EARLIER EDIFICE AND EXTENDED IT BY USING THE SAME MATERIALS INDIANA LIMESTONE ON THE OUTSIDE LIMESTONE AND PAINTED GYPSUM INSIDE ALONG WITH STONE OAK AND CARPETING AND MOTIFS HUGE VAULTED CEILINGS NEARLY IDENTICAL STAIRCASES THROUGHOUT THE BUILDING THE NEW MUSEUM CONTINUES FROM THE OLD ONE WITH ONLY A PAIR OF PLAQUES TO MARK THE DIVIDING LINE THE PLAN IS INTELLIGENT QUIETLY GRAND BUT IN AT LEAST ONE UNHAPPY WAY A REAL DALLAS BUILDING THE ARCHITECT CONCEDED A SORRY TRUTH THAT NO ONE WALKS IN DALLAS BY REALIGNING THE BUILDING SO THAT MOST VISITORS NOW ENTER AT A GRAND DRIVEIN ENTRANCE OR VIA THE GARAGE RIGHT BENEATH IT PEDESTRIANS WILL STILL BE ABLE TO COME IN THROUGH RELATIVELY MODEST DOORS AT THE MUSEUM'S SOUTH AND EAST ENDS AT THE GIANT TOWER OF THE NEW NORTH ENTRANCE HOWEVER VISITORS ARE GREETED BY AN OUTDOOR MOSAIC APPROPRIATELY ENTITLED GENESIS THE GIFT OF LIFE BY MIGUEL COVARRUBIAS WHICH THE DMA SAVED FROM THE WRECKER'S BALL WHEN ITS FORMER HOME AN OFFICE BUILDING WAS TORN DOWN INSIDE A THREESTORY ATRIUM FUNCTIONS AS ENTRY AGORA INFORMATION CENTER LIVING AND DINING ROOM AND IT FRANKLY RECOGNIZES THE INEVITABLE COMMERCIAL FUNCTION OF ANY MUSEUM WITH A TASTEFUL AND SPACIOUS GIFT SHOP TO THE RIGHT OF THE ENTRANCE SITS A 14000SQUAREFOOT TEMPORARY EXHIBITION SPACE TWICE THE SIZE OF THE MUSEUM'S PREVIOUS ONE WITH DRAMATIC FLAIR A GRAND STAIRCASE RISES TO THE EDUCATION DEPARTMENT ON THE SECOND FLOOR AND TO THE SPECTACULAR MUSEUM OF THE AMERICAS ON THE THIRD MANY VISITORS HAVE FELT A COLDNESS IN THE OLDER HALF OF THE MUSEUM BUT THE HAMON BUILDING PROVES THAT SECOND THOUGHTS ARE OFTEN BEST THE GEOMETRY IS EVERYWHERE CHASTE STRONG AND REASSURING BUT WITH SUFFICIENT VARIETY AND CHARM TO AVOID BEING MERELY OR STOICALLY MONUMENTAL A SINGLE SUMPTUOUS RUFINO TAMAYO PAINTING EL HOMBRE 1953 OVERSEES THE ATRIUM AT A RIGHT ANGLE FROM THE ATRIUM AND RUNNING THE ENTIRE LENGTH OF THE BUILDING A CENTRAL ARTERY ASCENDS GENTLY IT MIGHT BE COMPARED EITHER TO A CITY BOULEVARD WITH GALLERY SPACES FANNING OFF FROM IT OR IF ONE WERE LESS SYMPATHETIC TO AN AIRPORT TERMINAL VIEWS OF THE CITY POUR IN ALONG WITH NATURAL LIGHT FROM THREE SIDES THE MUSEUM MAKES ITS MAJOR ARCHITECTURAL STATEMENT BY OFFSETTING THE GRAND PUBLIC AREAS WITH GALLERIES THAT ARE INTIMATE WARM INVITING AND ABOVE ALL OPULENT BUT TASTEFUL IN THIS THE BUILDING VERY MUCH RESEMBLES ITS NEIGHBOR THE MEYERSON SYMPHONY CENTER WHICH COMBINES A SWIRLING POSTMODERN FANTASIA IN ITS LOBBIES WITH THE PLUSH QUASIVIENNESE MCDERMOTT CONCERT HALL AN INTERIOR JEWELBOX TEXANS MAY LIKE TO MAKE A PUBLIC SPLASH BUT AT HEART THEY'RE JUST PLAIN HOMEFOLKS DITTO THEIR RECENT BUILDINGS MR BARNES'S EXTENSION MERITS PRAISE FOR MANY REASONS MOST OF ALL FOR THE SENSITIVITY IT SHOWS TO THE ART IT CONTAINS IT'S AN IRONY OF THE HIGHEST SORT THAT POLITICALLY CONSERVATIVE DALLAS SHOULD HAVE LISTENED TO THE DRUMBEAT OF MULTICULTURALISM FOR THIS UNUSUAL STEP IT HAS TO THANK THE GUIDING HAND OF RICHARD BRETTELL THE FORMER DIRECTOR OF THE MUSEUM WHO OVERSAW THE ENTIRE PROJECT FROM INCEPTION TO COMPLETION LAST WEEK DR BRETTELL RESIGNED AS DIRECTOR A YEAR AGO BUT STAYED ON AS CONSULTANT TO THE OPENING OF THE NEW BUILDING NOW INSTEAD OF VIEWING AMERICAN PAINTING AS AN OFFSHOOT OF THE EUROPEAN OLD MASTERS OF WHICH THE DMA HAS A COMPARATIVELY WEAK SELECTION GALLERYGOERS CAN SEE IT IN A DIFFERENT CONTEXT DETERMINED BY GEOGRAPHY AND AN ARTISTIC PANAMERICANISM THE DMA'S COLLECTION OF PRECOLUMBIAN ARTIFACTS IS ONE OF THE BEST IN THE WORLD MORE OF IT IS NOW VISIBLE LIKEWISE THE BYBEE COLLECTION OF AMERICAN FURNITURE WHICH THE MUSEUM ACQUIRED IN 1985 BUT WAS UNABLE TO DISPLAY IN ITS ENTIRETY NOW SITS MORE COMFORTABLY ON THE FLOOR INTERSPERSED AMONG PICTURES AND OBJECTS AT THE TOP OF THE GRAND STAIRCASE ONE MOVES FROM THE NEW BUILDING'S LARGEST SPACE TO ITS SMALLEST THE MUSEUM OF THE AMERICAS BEGINS WITH A TINY SQUARE TOMBLIKE ROOM WITH WALLS THE COLOR OF BURNT EARTH CONTAINING 11 OBJECTS DISPLAYED AS A KIND OF HORS D'OEUVRES TO WHAT FOLLOWS RANGING FROM A FIRST MILLENIUM BC OLMEC CROUCHING MALE FIGURE TO A 19THCENTURY ESKIMO MASK OF WOOD AND FEATHERS AMERICAN VISIONS PREPARES THE VIEWER FOR THE RICHES TO COME THE FIRST FIVE ROOMS ARE DESIGNED SO THAT EACH IS TWICE THE SIZE OF THE ONE BEFORE EACH USES DIFFERENT DISPLAY TECHNIQUES AND EACH ILLUMINATES ITS OBJECTS DIFFERENTLY THE MEXICAN OBJECTS ARE LIGHTED WITH FIBER OPTICS WHICH NO OTHER MUSEUM HAS TRIED BATHING THE ITEMS IN A LIGHT THAT HAS NO APPARENT SOURCE THE WHOLE INSTALLATION INSPIRES A FEELING FOR SACRED RITUAL SPACES AND SACRAL OBJECTS ENCOUNTERED AS THOUGH FOR THE FIRST TIME THE CLIMAX OF THE DISPLAY IS SUPPOSED TO BE THE TREASURY A STOCKPILE OF SOUTH AMERICAN GOLD OBJECTS FROM SMALL JEWELRY TO MASKS WHICH SIT IN THE MASSIVE TOWER BENEATH A BARREL VAULT THAT REMINDS A VIEWER OF ROMAN ARCHITECTURE RATHER THAN ANYTHING FROM THIS HEMISPHERE THE SPACE IS SIMULTANEOUSLY CLAUSTROPHOBIC AND INTIMIDATING ONE GASPS AND LEAVES GRATEFUL TO MOVE ON TO THE LESS OVERWHELMING MORE MUNDANE EVEN MODESTLY DOMESTIC DISPLAYS OF POST1492 MATERIALS ON THE OTHER SIDE OF THE CENTRAL ARTERY IN LARGER OPEN SPACES WITH PLENTY OF NATURAL LIGHT OUR CURRENT INTELLECTUAL CLIMATE ASKS US TO CONSIDER THE NATIONAL AND CULTURAL RATHER THAN THE STRICTLY FORMAL AND STYLISTIC CONTEXTS OF WORKS OF ART IN THIS REGARD THE DMA'S NEW ARRANGEMENT MAY EVEN BE BREAKING NEW GROUND A VIEWER CAN LOOK AT ESKIMO AND PLAINS INDIAN ARTIFACTS TOGETHER OR COMPARE PICTURES BY THE CANADIAN GROUP OF SEVEN WITH OUR MIDWESTERN REGIONALISTS ONE MIGHT OBJECT THAT SOME OF THE PAINTINGS AREN'T PARTICULARLY STRONG OR THAT MANY AMERICAN ARTISTS IN THE DMA COLLECTION JOHN SINGER SARGENT AND GERALD MURPHY FOR EXAMPLE LIVED AND WORKED ABROAD AND WERE INFLUENCED AS MUCH BY EUROPE AS BY THEIR NATIVE COUNTRY EDWARD HOPPER'S LIGHTHOUSE 1927 HANGS BESIDE ALEXANDER YOUNG JACKSON'S A QUEBEC FARM 1930 ON LOAN FROM THE NATIONAL GALLERY OF CANADA THE FACT THAT THE FIRST OWES A DEBT TO FRENCH ART AND THE SECOND TO MUNCH AND OTHER NORTHERN EUROPEAN PAINTERS MIGHT MAKE A VIEWER QUESTION THE JUXTAPOSITION NEVERTHELESS THE DMA WANTS TO HONOR AN ARTISTIC GOOD NEIGHBOR POLICY FOR THE TIME BEING AT LEAST THIS IS A POLICY WORTH CONSIDERING ON SEVERAL FRONTS MR SPIEGELMAN IS CHAIRMAN OF THE ENGLISH DEPARTMENT AT SOUTHERN METHODIST UNIVERSITY IN DALLAS 9309290108 930929 BED BATH & BEYOND SPRINGFIELD NJ BED BATH & BEYOND INC SAID SEPTEMBER SALES ROSE 51 TO 236 MILLION FROM 156 MILLION A YEAR EARLIER WHILE COMPARABLESTORE SALES ROSE 136 THE COMPANY OPERATES A NATIONWIDE CHAIN OF DOMESTICMERCHANDISE SUPERSTORES 9309290107 930929 BUSINESS BRIEFS PRICE WATERHOUSE THE ACCOUNTING FIRM WON A 278 MILLION 10YEAR CONTRACT TO HELP THE INTERIOR DEPARTMENT STANDARDIZE AND AUTOMATE ITS PROCUREMENT PROCESSES FEDERALMOGUL CORP AN AUTO PARTS MAKER SOLD ITS EQUITY INTEREST IN JAPANESE ENGINE BEARING MAKER TAIHO KOGYO CO FOR 93 MILLION FEDERALMOGUL SOLD 1544400 SHARES TO TAIHO'S PRINCIPAL SHAREHOLDERS TOYOTA MOTOR CORP AND ITS AFFILIATES ESYSTEMS INC'S ECI DIVISION WAS AWARDED AN 117 MILLION PRODUCTION CONTRACT BY THE DEFENSE DEPARTMENT FOR ITS NEWEST ULTRAHIGH FREQUENCY RADIO THE MULTIMISSION UHF SATCOM TRANSCEIVER CONTINUUM CO SIGNED A SEVENYEAR CONTRACT TO PROVIDE DATA PROCESSING SERVICES TO HARCOURT GENERAL INSURANCE COS A UNIT OF HARCOURT GENERAL INC CONTINUUM SAID THE CONTRACT WILL PRODUCE REVENUES OF AT LEAST 50 MILLION OVER ITS LIFE 9309290106 930929 CD YIELDS FELL SLIGHTLY IN MOST RECENT WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE GENERALLY A FRACTION LOWER IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLIPPED TO 269 FROM 270 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 443 FROM 444 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 307 FROM 309 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 452 FROM 456 ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CREPT UP TO 276 FROM 275 ON FIVEYEAR JUMBOS THE AVERAGE INCHED DOWN TO 451 FROM 453 ACCORDING TO BANXQUOTE 9309290105 930929 MARKETING & MEDIA NEW YORK TIMES CO'S PURCHASE OF AFFILIATED IS CLEARED BY HOLDERS NEW YORK NEW YORK TIMES CO'S ACQUISITION OF AFFILIATED PUBLICATIONS INC PUBLISHER OF THE BOSTON GLOBE NEWSPAPER WAS APPROVED BY SHAREHOLDERS OF BOTH COMPANIES CLEARING THE WAY FOR ONE OF THE LARGEST COMBINATIONS IN NEWSPAPER HISTORY THE STOCKANDCASH DEAL VALUED AT ABOUT 1 BILLION IS EXPECTED TO CLOSE FRIDAY THE PURCHASE AGREEMENT PERMITTED AFFILIATED TO ABANDON THE DEAL IF NEW YORK TIMES CLASS A STOCK FELL BELOW 22 A SHARE THE INITIAL ANNOUNCEMENT SENT TIMES SHARES BELOW 24 IN MIDJUNE PROMPTING THE COMPANY TO BUY BACK 96 MILLION SHARES FOR 2389 MILLION THE TIMES CLASS A SHARES CLOSED YESTERDAY AT 2525 A SHARE UP 25 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING AFFILIATED CLASS A SHARES GAINED 125 CENTS TO 15 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE SULZBERGER FAMILY CONTROLS THE TIMES COMPANY THROUGH ITS OWNERSHIP OF CLASS B SHARES WHILE AFFILIATED HAS A SIMILAR STRUCTURE THAT GIVES CONTROL TO THE TAYLOR FAMILY THE AGREEMENT PROVIDED FOR THE TIMES COMPANY TO PAY 15 A SHARE IN CASH FOR UP TO 107 MILLION AFFILIATED SHARES BECAUSE AFFILIATED SHAREHOLDERS OFFERED 235 MILLION SHARES FOR CASH THEY WILL RECEIVE CASH FOR ABOUT 45 OF THEIR SHARES EACH REMAINING SHARE WILL BE CONVERTED INTO THE RIGHT TO RECEIVE 06 SHARE OF TIMES CLASS A COMMON OR A TOTAL OF ABOUT 364 MILLION SHARES THREE AFFILIATED DIRECTORS WERE NAMED TO THE TIMES BOARD INCREASING IT TO 17 MEMBERS WILLIAM O TAYLOR CHAIRMAN OF AFFILIATED ROBERT A LAWRENCE A PARTNER AT SALTONSTALL & CO AND JOHN P GIUGGIO FORMER PRESIDENT AT AFFILIATED IN 1992 AFFILIATED REPORTED SALES OF 414 MILLION AND THE TIMES COMPANY REPORTED REVENUE OF 177 BILLION 9309290104 930929 GM IN CANADA SETS CONCESSION ON JOBLESS AID CANADIAN AUTO UNION SAYS FIRM AGREES TO REBUILD FUNDS OVER THREE YEARS BY MARK HEINZL AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL MORE THAN A DAY BEFORE A STRIKE DEADLINE GENERAL MOTORS CORP'S CANADIAN UNIT MADE A KEY CONCESSION ON JOBLESSBENEFIT FUNDING THE CANADIAN AUTO WORKERS UNION SAID THE UNION SAID GM AGREED TO PUMP ABOUT 450 MILLION CANADIAN DOLLARS US339 MILLION OVER THE NEXT THREE YEARS INTO ITS CANADIAN JOBLESSBENEFIT FUNDS WHICH HAD BEEN RUN DOWN TO JUST C3 MILLION UNDER THE PREVIOUS CONTRACT GM'S CONTRIBUTIONS TO INCOMESECURITY FUNDS HAD BEEN LIMITED TO JUST C262 MILLION THIS MADE THE UNION OPTIMISTIC ABOUT REACHING AN AGREEMENT ON WAGES PENSIONS AND TIME OFF ACCORDING TO CAW PRESIDENT BUZZ HARGROVE ALTHOUGH GM OFFICIALS HAVE BEEN CAUTIONING THAT A SETTLEMENT IN CANADA WON'T NECESSARILY SIGNAL GM'S US BARGAINING STANCE THE CANADIAN UNIT'S AGREEMENT ON ENRICHING THE LAYOFF PROVISIONS WILL MAKE IT HARD FOR THE US OPERATIONS TO AVOID DOING SO TOO AS FORMER UNITED AUTO WORKERS PRESIDENT DOUGLAS A FRASER PUTS IT IF YOU CAN MEET THE PATTERN IN CANADA WHY NOT IN THE US AT LEAST IN THIS RESPECT GM CANADA APPEARS TO BE MATCHING THE PATTERN SET EARLIER IN TALKS WITH CHRYSLER CORP'S CANADIAN UNIT MEANWHILE THE UAW SAID IT HAD SET A SETTLEMENT DEADLINE OF 1159 PM TOMORROW FOR CHRYSLER IN THE US THE UAW REPRESENTS 54000 HOURLY WORKERS AND 6000 SALARIED WORKERS AT CHRYSLER THE THREEYEAR UAWCHRYSLER CONTRACT EXPIRED SEPT 14 AND THE UNION HAS BEEN EXTENDING THE CONTRACT ON A DAYTODAY BASIS SINCE THEN IN TORONTO MR HARGROVE THE CAW PRESIDENT DECLARED GM'S COMMITMENT ON JOBLESS BENEFITS A MAJOR STEP FORWARD AND SAID HE IS OPTIMISTIC THAT GM IS HEADING TOWARD AN AGREEMENT WITH THE UNION WHICH REPRESENTS 27700 GM WORKERS IN CANADA MR HARGROVE CAUTIONED HOWEVER THAT GM STILL HASN'T AGREED TO THE OVERALL PACKAGE OF INCREASED WAGES PENSIONS AND TIME OFF TO WHICH CHRYSLER AGREED EARLIER THIS MONTH THAT AGREEMENT IS ESSENTIAL IF A STRIKE IS TO BE AVOIDED HE SAID ONE OF THE PROBLEMS FACING GM IN CONTRACT TALKS IN THE US IS THAT THE INDUSTRYPATTERN CONTRACT SET AT FORD MOTOR CO CALLS FOR JOBLESSBENEFIT FUNDS TO BE REPLENISHED AND STRENGTHENED MATCHING THOSE PROVISIONS COULD REQUIRE GM TO COMMIT TO SPENDING IN EXCESS OF 35 BILLION IN LAYOFF BENEFITS OVER THE NEXT THREE YEARS AS IT SHRINKS ITS US OPERATIONS SUCH ISSUES COULD BE FACING GM AS EARLY AS NEXT WEEK SINCE THE UAW SET ITS DEADLINE THIS WEEK FOR WRAPPING UP THE CHRYSLER TALKS CHRYSLER'S US OPERATIONS ARE EASILY THE MOST PROFITABLE OF THE BIG THREE RIGHT NOW AND MOST ANALYSTS SAY THE COMPANY SHOULD HAVE LITTLE TROUBLE ACCEPTING THE FORD PATTERN LIKE FORD AND UNLIKE GM CHRYSLER EXPECTS TO DO A LOT OF HIRING IN THE NEXT THREE YEARS THUS THE NO 3 US AUTO MAKER WOULD STAND TO BENEFIT FROM THE LOWER STARTING WAGES FOR NEW HIRES NEGOTIATED BY FORD IF THERE IS A STICKING POINT HOWEVER IT PROBABLY WILL BE OVER UNION DEMANDS THAT CHRYSLER SUBCONTRACT LESS WORK TO INDEPENDENT PARTS SUPPLIERS 9309290102 930929 WHO'S NEWS MAGNETEK INC'S PERNA QUITS EXECUTIVE POSTS GALEF IS ACTING CEO LOS ANGELES FRANK PERNA JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MAGNETEK INC SAID HE DECIDED TO GIVE UP HIS EXECUTIVE POSTS SO HE CAN THINK ABOUT WHAT TO DO FOR THE NEXT 10 YEARS MR PERNA 55 YEARS OLD SAID HE COULDN'T THINK ABOUT HIS FUTURE WHILE DEVOTING HIMSELF TO THE ELECTRICALEQUIPMENT CONCERN A HIGH PRIORITY IS TO SPEND TIME AT A VACATION HOME I'VE BARELY VISITED THE EXECUTIVE SAID CHAIRMAN ANDREW G GALEF 60 YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE UNTIL A PERMANENT NEW CHIEF IS SELECTED THE COMPANY SAID THE PRESIDENT'S POST WAS LEFT VACANT MR PERNA REMAINS A DIRECTOR THE EXECUTIVE JOINED MAGNETEK SHORTLY AFTER ITS CREATION IN 1984 SINCE THEN THE COMPANY HAS GROWN TO 15 BILLION IN SALES FROM 195 MILLION PROFIT PLUNGED IN THE FISCAL FOURTH QUARTER ENDED JUNE 30 BECAUSE OF UNEXPECTED CHANGES IN DEMAND FOR CERTAIN PRODUCTS AMONG OTHER FACTORS MR PERNA SAID HIS DEPARTURE WASN'T RELATED TO THE COMPANY'S FINANCIAL PERFORMANCE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MAGNETEK CLOSED AT 13375 UP 25 CENTS 9309290100 930929 VIACOM IN TALKS WITH 2 FIRMS ON INVESTMENT MOVE BY SOUTHWESTERN BELL AND COX COULD SWEETEN THE BID FOR PARAMOUNT BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SOUTHWESTERN BELL CORP AND COX ENTERPRISES INC ARE IN DISCUSSIONS WITH VIACOM INC TO JOINTLY INVEST MORE THAN 1 BILLION IN THE CABLE AND ENTERTAINMENT COMPANY A CASH INFUSION THAT WOULD ENABLE VIACOM TO SWEETEN ITS 78 BILLION BID FOR PARAMOUNT COMMUNICATIONS INC VIACOM IS FACING A COMPETING 99 BILLION OFFER FOR PARAMOUNT FROM QVC NETWORK INC AND IS UNDER PRESSURE FROM PARAMOUNT SHAREHOLDERS TO BOOST ITS STOCK AND CASH OFFER EXECUTIVES OF COX AND SOUTHWESTERN BELL WERE MEETING WITH VIACOM YESTERDAY PEOPLE CLOSE TO THE TALKS SAID THE PEOPLE SAID VIACOM IS ALSO CONTINUING TO TALK TO A HALF DOZEN OTHER POTENTIAL INVESTORS INCLUDING OTHER REGIONAL TELEPHONE CABLE TV AND COMPUTER SOFTWARE CONCERNS THE NAMES OF OTHER POTENTIAL INVESTORS COULDN'T BE LEARNED BUT THE TALKS WITH SOUTHWESTERN BELL AND COX ARE SAID TO BE THE FURTHEST ALONG UNDER THE PLAN BEING DISCUSSED SOUTHWESTERN BELL A ST LOUIS REGIONAL TELEPHONE GIANT AND COX A CLOSELY HELD CABLE AND PUBLISHING CONCERN BASED IN ATLANTA WOULD BUY CONVERTIBLE PREFERRED SECURITIES OF VIACOM IN RETURN FOR CASH WHICH VIACOM COULD USE TO INCREASE THE 910 A SHARE CASH PORTION OF ITS 6560 A SHARE OFFER FOR PARAMOUNT QVC A HOME SHOPPING COMPANY IS OFFERING 8313 A SHARE FOR PARAMOUNT INCLUDING 30 A SHARE TNMIN CASH WALL STREET TRADERS NOTED THAT VIACOM NEEDS ABOUT 2 BILLION MORE IN CASH TO MATCH THE AMOUNT OF CASH IN THE QVC OFFER PEOPLE CLOSE TO VIACOM SAID YESTERDAY THAT THE AMOUNT IT COULD RECEIVE FROM PARTNERS WAS MORE THAN 1 BILLION AND COULD BE CONSIDERABLY HIGHER DEPENDING ON HOW MANY PARTNERS IT TAKES ON AND THE TERMS AGREED ON IF COX AND SOUTHWESTERN BELL INVEST IN THE VIACOM SECURITIES AFTER THE MERGER WITH PARAMOUNT IS COMPLETED THEIR SECURITIES IN VIACOM WOULD BE CONVERTED INTO HOLDINGS IN THE NEW PARAMOUNT VIACOM WHICH IS THE PLANNED NAME FOR THE MERGED COMPANY SOUTHWESTERN BELL COX AND VIACOM ALL DECLINED TO COMMENT EVEN BEFORE THE MERGER AGREEMENT WITH PARAMOUNT VIACOM HAD BEEN IN ONAGAIN OFFAGAIN TALKS FOR MONTHS WITH SOUTHWESTERN BELL ABOUT MAKING AN INVESTMENT IN VIACOM'S CABLE OPERATIONS VIACOM CHAIRMAN SUMNER REDSTONE HAS SAID THE DEAL UNDER DISCUSSION WOULD HAVE PUT A 25 BILLION VALUE ON VIACOM'S CABLE OPERATIONS BUT PEOPLE FAMILIAR WITH THE SITUATION SAID THE DEAL FELL APART OVER DISAGREEMENTS IN THE VALUE OF THE SYSTEMS MR REDSTONE IS KNOWN FOR BEING A TOUGH NEGOTIATOR WHO SEEKS A HEAVY PREMIUM FOR HIS ASSETS AND PEOPLE SAID THE CURRENT TALKS WITH SOUTHWESTERN BELL AND COX MIGHT FOUNDER OVER VALUATION ISSUES AS WELL ALSO A POTENTIAL STUMBLING BLOCK THE SECURITIES UNDER DISCUSSION WOULDN'T CARRY ANY VOTING CONTROL MR REDSTONE HAS A 763 VOTING STAKE IN VIACOM AND WOULD HAVE 698 OF PARAMOUNT VIACOM INVESTORS SEEMED TO BE WAITING YESTERDAY FOR THE NEXT SHOE TO DROP IN THE BIG TAKEOVER BATTLE PARAMOUNT STOCK GAINED 125 CENTS TO CLOSE AT 7775 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN OVERTHECOUNTER TRADING QVC CLOSED AT 5950 OFF 125 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING VIACOM CLASS A SHARES CLOSED AT 61 OFF 150 CENTS AND THE CLASS B STOCK FELL 125 TO CLOSE AT 56 AS INVESTORS REACTED TO MR REDSTONE'S STATEMENT THAT HE WAS PLANNING AN ANNOUNCEMENT FAVORABLE TO PARAMOUNT HOLDERS IN 72 HOURS MEANWHILE QVC INDICATED IT HAS BEEN APPROACHED BY POTENTIAL INVESTORS INCLUDING TELEPHONE COMPANIES THOUGH PEOPLE CLOSE TO QVC SAID IT DOESN'T CURRENTLY ANTICIPATE THE NEED TO BRING ON ANOTHER PARTNER QVC IS CURRENTLY IN NEGOTIATIONS WITH A NUMBER OF BANKS TO PROVIDE COMMITMENT LETTERS FOR ITS FINANCING OF THE PARAMOUNT OFFER PARAMOUNT SAID MONDAY IT WILL CONSIDER THE QVC PROPOSAL WHEN THERE IS SATISFACTORY EVIDENCE OF FINANCING PEOPLE CLOSE TO QVC SAID THE COMPANY IS TRYING TO NAIL DOWN THE COMMITMENTS BY NO LATER THAN FRIDAY THEY ADDED THAT QVC IS DISCOVERING CONTRARY TO EARLIER INFORMATION THEY RECEIVED THAT THE FINANCING COSTS WILL BE CHEAPER THAN IT INITIALLY EXPECTED THE CASH PORTION OF THE QVC OFFER TOTALS 36 BILLION TWO OF QVC'S CONTROLLING OWNERS LIBERTY MEDIA INC AND COMCAST CORP ARE KICKING IN 1 BILLION PARAMOUNT WHICH SAYS IT IS PROCEEDING WITH ITS MERGER WITH VIACOM HAD NO COMMENT PARAMOUNT'S STATEMENT MONDAY THAT IT IS PREPARED TO DISCUSS THE QVC PROPOSAL MAY ALSO BRING OTHER COMPETING BIDDERS INTO THE FRAY ALTHOUGH NONE HAVE EMERGED AS YET AT PRESENT INVESTMENT BANKERS NOT INVOLVED IN THE VIACOM OR QVC OFFERS ARE SCURRYING TO LINE UP POTENTIAL RIVAL BIDS AND MANY COMPANIES THAT AREN'T INTERESTED IN A BIDDING CONTEST ARE APPROACHING EITHER QVC OR VIACOM ABOUT JOINING UP AS PARTNERS OR INVESTORS COX AND SOUTHWESTERN BELL ARE PARTNERS IN A PHONE AND CABLE SERVICE VENTURE IN BRITAIN ACCORDING TO SOURCES CLOSE TO BOTH COMPANIES COX AND SOUTHWESTERN BELL SEPARATELY HAVE HELD DISCUSSIONS WITH EACH OTHER ABOUT THEIR OWN POTENTIAL PARTNERSHIP IN THE US HOW AN INVESTMENT IN VIACOM WOULD AFFECT THOSE TALKS IS UNCLEAR A VIACOM INSIDER SAID THAT AN INVESTMENT BY COX AND SOUTHWESTERN BELL IN VIACOM WOULDN'T BE CONDITIONED ON VIACOM COMPLETING ITS MERGER WITH PARAMOUNT 9309290099 930929 BUSINESS BRIEF BRAINTREE SAVINGS BANK MERGER TALKS ARE DISCLOSED OTHER BANK ISN'T IDENTIFIED BRAINTREE SAVINGS BANK IS INVOLVED IN MERGER TALKS WITH AN UNIDENTIFIED BANK THOUGH THE DISCUSSIONS ARE IN A VERY PRELIMINARY STAGE SAID WINTHROP SARGENT CHAIRMAN THE BRAINTREE MASS BANK WITH ASSETS VALUED AT 178 MILLION POSTED 1992 NET INCOME OF 22 MILLION OR 141 A SHARE AFTER A LOSS OF 56 MILLION OR 354 A SHARE IN 1991 IT REPORTED NET OF 14 MILLION OR 92 CENTS A SHARE FOR THE FIRST SIX MONTHS OF 1993 A STATEMENT ABOUT THE POSSIBLE MERGER WAS ISSUED AFTER THE MARKET CLOSED YESTERDAY BANK OFFICIALS COULDN'T BE REACHED FOR COMMENT NO AGREEMENT HAS BEEN REACHED AS TO PRICE OR STRUCTURE MR SARGENT SAID IN THE STATEMENT 9309290097 930929 WHO'S NEWS DENTSPLY INTERNATIONAL INC DENTSPLY INTERNATIONAL INC DES PLAINES ILL ARTHUR A DUGONI WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF DENTAL SUPPLIES AND EQUIPMENT DR DUGONI IS DEAN OF THE SCHOOL OF DENTISTRY AT THE UNIVERSITY OF THE PACIFIC IN SAN FRANCISCO 9309290096 930929 WHO'S NEWS AMTRAN INC AMTRAN INC INDIANAPOLIS JOHN P TAGUE 31 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT WAS NAMED TO THE NEW POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PROVIDER OF CHARTER AND SCHEDULED AIRLINE SERVICES TO LEISURE TRAVELERS EFFECTIVE OCT 1 GEORGE MIKELSONS 56 THE COMPANY'S FOUNDER CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9309290094 930929 CORPORATE FOCUS PLAYBOY LOOKS OVERSEAS AS US CLIMATE GROWS HOSTILE HEFNER BETS ON ECONOMIC SOCIAL SHIFTS IN CHINA EUROPE AND LATIN AMERICA BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHAT DO THE FALL OF COMMUNISM AN ECONOMIC UTURN IN CHINA AN APPETITE FOR STEAMY SOAP OPERAS IN LATIN AMERICA AND THE AIDS EPIDEMIC HAVE TO DO WITH THE PLAYBOY RABBIT A LOT IF CHRISTIE HEFNER CHAIRMAN AND CHIEF EXECUTIVE OF PLAYBOY ENTERPRISES INC IS BETTING CORRECTLY THE PUBLISHING ENTERTAINMENT AND LICENSING GROUP HOPES ECONOMIC AND SOCIAL CHANGES SWEEPING THE GLOBE WILL TRANSLATE INTO NEW OPPORTUNITIES FOR ITS WELLKNOWN BUT TIRED BRAND THE CLIMATE OF CONSERVATISM AND POLITICAL CORRECTNESS IN THE US IN RECENT YEARS HASN'T BEEN KIND TO THE RABBIT INDEED PLAYBOY ON MONDAY SAID IT EXPECTS A 45 MILLION OPERATING LOSS AND A 23 MILLION RESTRUCTURING CHARGE IN ITS FISCAL FIRST QUARTER ENDING SEPT 30 WITH A ONETIME ACCOUNTING BENEFIT NET INCOME IS EXPECTED TO BE 200000 COMPARED WITH A YEAREARLIER LOSS OF 1 MILLION ABOUT 60 JOBS OR 10 OF THE WORK FORCE WILL BE ELIMINATED THE CIRCULATION OF THE COMPANY'S 40YEAROLD FLAGSHIP MAGAZINE HAS SLID 50 TO 34 MILLION FROM ITS RECORD 68 MILLION IN FISCAL 1972 THE NUMBER OF ADVERTISING PAGES WHICH PEAKED AT 1434 IN 1980 WAS 660 IN THE YEAR ENDED JUNE 30 A 2 GAIN FROM THE PRIOR YEAR THE COMPANY SAID THIS WEEK THAT AD PAGES FOR THE FISCAL FIRST QUARTER WILL BE DOWN 3 FROM THE YEAREARLIER LEVEL ITSELF A 22 DECLINE PLAYBOY'S AVERAGE READER IS A 33YEAROLD MALE WITH HOUSEHOLD INCOME OF 35700 HALF ARE MARRIED PUBLISHING CONSULTANT MARTIN WALKER OF NEW YORK SAYS THE MAGAZINE NEEDS TO REACH OUT TO YOUNGER READERS BUT MAY HAVE TROUBLE MANY YOUNGER MEN ARE SATISFYING THEIR DEMAND FOR SEXUALLY EXPLICIT MATERIALS BY RENTING VIDEOS HE SAYS I'M NOT SURE THE SEXUALITY OF PLAYBOY IS VERY GERMAINE TO THAT AUDIENCE SAYS MR WALKER WHILE REVENUE OF PLAYBOY'S PUBLISHING GROUP HAS GROWN MUCH OF THE INCREASE REFLECTS STRONG RESULTS FOR ITS PLAYBOY AND CRITICS' CHOICE VIDEO CATALOGS IN FACT THE CATALOG BUSINESS IS SO BUOYANT THAT PLAYBOY PLANS TO TEST LAUNCH A MUSIC CD AND CASSETTE CATALOG NEXT MONTH BUT MS HEFNER'S AMBITIONS TO START NEW MAGAZINES OR ACQUIRE COMPLEMENTARY TITLES HAVE GONE NOWHERE DESPITE SEVERAL EFFORTS WE'D BE VERY HAPPY TO OWN ROLLING STONE OR VANITY FAIR SHE SAYS BUT WHAT'S BEEN FOR SALE HASN'T BEEN INTERESTING TO US WE'RE DEFINITELY OUT THERE LOOKING WITHOUT BEING ANXIOUS THEY'RE A SINGLETITLE COMPANY SAYS MR WALKER HE GIVES MS HEFNER CREDIT FOR RESCUING THE COMPANY FROM MANY ILLSTARRED BUSINESS VENTURES INITIATED BY HER FATHER COMPANY FOUNDER HUGH HEFNER WHO THROUGH A TRUST CONTROLS 707 OF THE VOTING STOCK BUT SHE HASN'T SHOWN A TERRIFIC AMOUNT OF IMAGINATION IN GROWING NEW BUSINESS MR WALKER MAINTAINS MS HEFNER 40 YEARS OLD IS MORE SANGUINE IF WE NEVER BUY ANOTHER MAGAZINE THE COMPANY WILL GROW AT A STRONG RATE SHE SAYS THE COMPANY DISCLOSED THAT IT RECENTLY HAS BEGUN TALKING TO GAMBLING OPERATORS ABOUT THE POSSIBILITY OF ENTERING THAT BUSINESS BUT DECLINED TO ELABORATE PLAYBOY WAS DENIED A CASINO LICENSE IN NEW JERSEY IN 1982 THE ENTERTAINMENT GROUP HAS BEEN HAVING TROUBLES OF LATE QUESTIONS ABOUT CABLE REREGULATION IN THE US ARE HURTING SALES OF PLAYBOY'S PAYTV PROGRAMMING THE NUMBER OF MONTHLY SUBSCRIPTIONS FOR PLAYBOY TV FELL LAST YEAR ALTHOUGH PAYPERVIEW AND HOME SATELLITE REVENUES WERE UP PROGRAMMING EXPENSES ZOOMED TO 23 MILLION FROM 16 MILLION A YEAR AGO DESPITE THE ENTERTAINMENT GROUP'S HIGHER REVENUE FROM GROWTH IN INTERNATIONAL TELEVISION OPERATING PROFIT WAS DOWN 50 EARLIER THIS MONTH THE GROUP'S NO 2 EXECUTIVE A 21YEAR PLAYBOY VETERAN WAS ASKED TO LEAVE THE THIRD LEG OF PLAYBOY'S EMPIRE LICENSING OF ITS NAME AND LOGO ON PRODUCTS HAS BEEN PARED IN THE US AHEAD OF A PLANNED REVAMP TO MORE UPSCALE PRODUCTS SUCH AS LINGERIE ITS SPECIAL EDITIONS UNIT SELLS WATCHES TIES AND PRINTS BASED ON PLAYBOY'S ART COLLECTION AND ITS SARAH COVENTRY BRAND IS LICENSED ON COSTUME JEWELRY BUT GROWTH OVERSEAS IS HELPING TO OFFSET THE LACK OF BUSINESS AT HOME IN EXTENDING THE BRAND OVERSEAS MARKETS DO HOLD PROMISE WHILE PLAYBOY HAS LICENSED PRODUCTS AND OVERSEAS EDITIONS OF THE MAGAZINE SINCE THE 1970S CHINA AND EASTERN EUROPE EXIST AS MARKETS TODAY THAT WEREN'T THERE FIVE YEARS AGO MS HEFNER SAYS AND PLAYBOY IS SET TO LAUNCH ITS 17TH FOREIGN EDITION IN SOUTH AFRICA SINCE 1989 PLAYBOY HAS LICENSED OVERSEAS EDITIONS IN POLAND HUNGARY AND THE CZECH REPUBLIC SOME OF PLAYBOY'S PAYPERVIEW CABLE AND TELEVISION OFFERINGS ARE AIRING IN BULGARIA AND ITS HOME VIDEOS ARE AVAILABLE IN SLOVENIA AND CROATIA LIKEWISE CHINA'S EMBRACE OF A TYPE OF CAPITALISM HAS ALLOWED PLAYBOY TO PUT BRANDED CASUAL CLOTHING SUNGLASSES AND OTHER MERCHANDISE INTO MORE THAN 65 SHOPS AND KIOSKS THERE THE COMPANY HOPES THROUGH ITS HONG KONGBASED LICENSEE TO BE PEDDLING ITS WARES IN 100 OUTLETS IN CHINA BY THE END OF 1994 LATIN AMERICA'S NEW ECONOMIC VITALITY AND TRADITIONAL APPETITE FOR STEAMY SERIALS IS TRANSLATING INTO DEMAND FOR RACY AMERICANSTYLE ENTERTAINMENT IN JUNE PLAYBOY LANDED A CONTRACT TO SUPPLY ITS TELEVISION PROGRAMMING TO A PAYTV JOINT VENTURE HBO OLE IN LATIN AMERICAN AND CARIBBEAN NATIONS AND TERRITORIES WITH 500 HOURS OF EROTIC PROGRAMMING IN ITS LIBRARY PLAYBOY SEES THE EXPLOSION OF INTERNATIONAL TELEVISION CABLE AND PAYPERVIEW CHANNELS AS A VEHICLE FOR EXPANDING VIEWERSHIP INTERNATIONAL CAN CATCH UP WITH DOMESTIC IN THREE TO FIVE YEARS SAYS ANTHONY LYNN WHO RUNS THE ENTERTAINMENT GROUP INDEED PLAYBOY RECENTLY CONCLUDED AGREEMENTS WITH A SPANISH PAYTV COMPANY AND ANOTHER EUROPEAN CABLE OPERATOR IT DECLINES TO IDENTIFY AS ASIAN NATIONS WAKE UP TO THREAT OF AIDS PLAYBOY BELIEVES IT CAN PLAY A ROLE POPULARIZING CONDOM USAGE WITH PARTNER MBF GROUP A MALAYSIAN CONGLOMERATE PLAYBOY IS GOING TO INTRODUCE BRANDED CONDOMS IN ASIA THIS YEAR MS HEFNER SAYS SHE WANTS TO MAKE CONDOM USE SUFFICIENTLY FASHIONABLE AND HIP PLAYBOY BELIEVES ITS BIGGEST STRENGTH IS ITS BRAND THE WORLD'S SECONDBEST KNOWN SYMBOL AFTER COCACOLA'S LOGO CLAIMS ROBERT BELESON PLAYBOY'S CHIEF MARKETING OFFICER THE PROBLEM AMONG US CONSUMERS HE SAYS IS THAT THE LIFESTYLE MR HEFNER NURTURED THE PLAYBOY BUNNIES AND THE WILD PARTIES NO LONGER TELLS PEOPLE ABOUT WHAT PLAYBOY IS ABOUT MR BELESON SAYS PLAYBOY MUST BE PROACTIVE ABOUT WHAT THE BRAND MEANS IN THE 1990S A BIG CHALLENGE IS HOW DO WE MAKE THIS BUSINESS MORE ACCEPTABLE TO WOMEN HE SAYS INHERENTLY IT'S A GUYS' BRAND ON THE PROGRAMMING SIDE PLAYBOY INCREASINGLY IS AIMING AT COUPLES THROUGH ITS SEXY SOAP OPERA EDEN MUSIC VIDEOS AND MASSAGE AND RELATIONSHIPENHANCEMENT TAPES AS FOR THE MAGAZINE PUBLISHER MICHAEL PERLIS HAS ADDED PAGES ON MENS' FASHION A COLUMN ABOUT WOMEN AUTOMOTIVE FEATURES AND RESEARCH AND POLLS ABOUT THE MEN'S MOVEMENT BUT MAKE NO MISTAKE PLAYBOY TV AIRS EROTIC FILMS THE MAGAZINE'S CENTERFOLD IS SACROSANCT AND CONSIDER THIS FEATURE FROM A RECENT ISSUE LADY LIFEGUARDS THEY'LL GET YOUR HEART THUMPING THE TERRAIN IS VERY FAMILIAR SAYS MR PERLIS WE STILL SPEAK THE LANGUAGE OF MEN PLAYBOY MAGAZINE AND 16 OVERSEAS EDITIONS TWO CATALOGS HOME VIDEO SALES AND RENTALS SATELLITE CABLE AND PAYPERVIEW TELEVISION PROGRAMMING ROYALTIES FROM PRODUCT MARKETING 9309290093 930929 HOUSE WILL MAKE PUBLIC ITS PETITIONS TO DISCHARGE BILLS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE BOWING TO UNUSUAL PUBLIC PRESSURE FANNED BY TALKSHOWS AND EDITORIALS CHANGED ITS RULES TO MAKE PUBLIC LAWMAKERS' PETITIONS AIMED AT FORCING FLOOR VOTES ON LEGISLATION BURIED IN COMMITTEES THE OVERWHELMING 38440 VOTE BELIED THE RESISTANCE THAT HOUSE DEMOCRATIC LEADERS INITIALLY PUT UP AGAINST THE REPUBLICANSPONSORED RULE CHANGE BEFORE PUBLIC SUPPORT FOR IT SWAYED THEM ALL 40 DISSENTING VOTERS WERE DEMOCRATS BACKERS OF TERM LIMITS AND A LINEITEM VETO ARE EXPECTED TO BE AMONG THE FIRST TO TAKE ADVANTAGE OF THE DECISION TO DISCLOSE THE NAMES OF LAWMAKERS WHO SIGN THE SOCALLED DISCHARGE PETITIONS UNDER HOUSE RULES A MAJORITY OF 218 LAWMAKERS MUST SIGN A PETITION TO FORCE A FLOOR VOTE ON A BILL THAT IS BEING HELD UP IN A COMMITTEE BY THE CHAIRMEN AND PARTY LEADERS WHO OPPOSE IT FOR MORE THAN 61 YEARS THE SIGNATURES ON THESE PETITIONS HAVE BEEN SECRET FROM THE PUBLIC DEMOCRATIC LEADERS AND A NUMBER OF CONGRESSIONAL SCHOLARS ARGUE THAT SECRECY GUARDS LAWMAKERS AGAINST UNDUE PRESSURE FROM LOBBYISTS AND FROM THE PUBLIC ON CONTROVERSIAL ISSUES SUPPORTERS OF DISCLOSURE COUNTER THAT WITH SECRECY IT IS PARTY LEADERS WHO ARE ABLE TO PRESSURE RANKANDFILE MEMBERS KEEPING THEM FROM SUPPORTING ACTION ON POPULAR MEASURES BOTH SIDES AGREE THAT WITH THE CHANGE JUNIOR LAWMAKERS AND THE MINORITY REPUBLICANS WILL FIND IT EASIER TO BRING MEASURES TO THE FLOOR EVEN WHEN THEY ARE OPPOSED BY COMMITTEE CHAIRMEN OR HOUSE LEADERS THE VOTE FOR FULL DISCLOSURE IN FACT WAS FORCED BY A DISCHARGE PETITION FROM REP JAMES INHOFE THE OKLAHOMA REPUBLICAN GATHERED THE LAST OF THE REQUIRED 218 SIGNATURES AFTER BREAKING THE RULE AND DISCLOSING THE NAMES OF THE NONSIGNERS HE WAS GREATLY AIDED BY TALKSHOW HOSTS BILLIONAIREACTIVIST ROSS PEROT AND HIS SUPPORTERS AND BY NEWSPAPER EDITORIALS PARTICULARLY IN THE WALL STREET JOURNAL ALL OF WHICH SPAWNED A GROUNDSWELL OF PUBLIC SUPPORT THAT REACTION TO A SOMEWHAT CONFUSING CHANGE IN THE ARCANE HOUSE RULES SURPRISED LAWMAKERS ON BOTH SIDES OF THE ISSUE THE VOTE WAS JUST THE FOURTH TIME IN THE HISTORY OF THE RULE THAT A MEASURE SPRINGING FROM THE DISCHARGE PROCESS HAS BEEN PASSED DISCHARGE PETITION SUNSHINE' IS A NECESSARY STEP TO ENSURE THAT OUR COMMITTEES ARE RESPONSIVE TO A HOUSE MAJORITY AND NOT JUST TO COMMITTEE CHAIRMEN AND MAJORITY LEADERSHIP AGENDAS SAID REP GERALD SOLOMON OF NEW YORK A REPUBLICAN WHO HELPED SHEPHERD THE RULE CHANGE TO APPROVAL SPEAKER THOMAS FOLEY OF WASHINGTON SAID HE WASN'T SURE WHAT THE IMMEDIATE IMPACT WOULD BE BUT EXPRESSED HOPE THAT DISCHARGE PETITIONS WOULD CONTINUE TO BE USED AS A LAST RESORT IT DOES NOT REQUIRE HEARINGS IT DOES NOT REQUIRE OR PERMIT AMENDMENTS ACTUALLY AND IT DOES NOT ADMIT OF ANY PUBLIC INPUT HE SAID AS A CONSEQUENCE HE ADDED IT IS A VERY STILTED AND RESTRICTED AND NONPUBLIC METHOD OF DISCUSSING LEGISLATION 9309290092 930929 ECONOMY TAX CREDIT IS LIKELY TO SPUR MILD BOOM IN CONSTRUCTION OF AFFORDABLE HOUSING BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE REINSTATEMENT OF THE LOWINCOME HOUSING TAX CREDIT IS LIKELY TO FUEL A SMALL BOOM IN APARTMENT CONSTRUCTION BOOSTING BUILDING TRADES AND HELPING BLIGHTED RESIDENTIAL AREAS ONE INDICATION OF THE POTENCY OF THE CREDIT WILL COME IN A NEWS CONFERENCE HERE TODAY WHEN THE NEW YORKBASED LOCAL INITIATIVES SUPPORT CORP A NONPROFIT GROUP FOUNDED BY THE FORD FOUNDATION ANNOUNCES PLANS TO USE THE LOWINCOME HOUSING TAX CREDIT TO RAISE 15 BILLION OVER THE NEXT FIVE YEARS FOR AFFORDABLE HOUSING PROJECTS THE MONEY WILL GO TO COMMUNITY GROUPS TO SERVE AS THE EQUITY PORTION FOR DEVELOPING MORE THAN 35000 UNITS IN 30 CITIES THE TAX CREDIT WAS MADE PERMANENT IN THE AUGUST TAX BILL OTHER GROUPS RANGING FROM THE ENTERPRISE FOUNDATION IN COLUMBIA MD WHICH LIKE LISC WORKS CLOSELY WITH GRASSROOTS GROUPS TO REVIVE URBAN NEIGHBORHOODS TO THE NATIONAL ASSOCIATION OF HOME BUILDERS EXPECT THE TAX CREDIT TO GENERATE ACTIVITY IN THE AFFORDABLE HOUSING MARKET AS WELL USING THE CREDIT INDIVIDUALS AND CORPORATIONS MAY REDUCE THEIR FEDERAL TAX LIABILITY BY INVESTING IN RENTAL PROJECTS FOR LOW AND MODERATEINCOME PEOPLE FOR EXAMPLE THE NATIONAL EQUITY FUND A LISC AFFILIATE ORGANIZES PARTNERSHIPS OF FORTUNE 500 COMPANIES THAT INVEST IN THE PROJECTS AND GET TAX BENEFITS IN RETURN OVER THE YEARS THE CREDIT HAS HAD A HISTORY REMINISCENT OF THE PERILS OF PAULINE DECLARED SEN JOHN DANFORTH A MISSOURI REPUBLICAN AND BIG SUPPORTER IT WAS APPROVED ON A TEMPORARY BASIS IN 1986 THEN WAS EXTENDED SEVERAL TIMES UNTIL IT EXPIRED IN 1992 BUT EVEN WITH ITS STOPANDGO HISTORY IT HAS BEEN RESPONSIBLE FOR THE DEVELOPMENT OF MORE THAN 90 OF THE LOWINCOME RENTAL HOUSING BUILT IN RECENT YEARS THAT MAKES IT BY FAR THE GOVERNMENT'S BIGGEST SUBSIDY PROGRAM FOR AFFORDABLE RENTAL HOUSING ALONG WITH POWERFUL CONGRESSIONAL BACKERS PRESIDENT CLINTON CAMPAIGNED TO MAKE THE TAX CREDIT PERMANENT IT FITS WITH HIS IDEAS OF USING PUBLICPRIVATE PARTNERSHIPS TO SOLVE PROBLEMS AT THE COMMUNITY LEVEL NOW THAT THE CREDIT IS PERMANENT THERE'S A TREMENDOUS RUSH OF ACTIVITY IN HOUSING TAXCREDIT PRODUCTION SAID PAUL GROGAN PRESIDENT OF LISC WHICH WAS FOUNDED IN 1979 A STOPPER IN A BOTTLE HAS BEEN REMOVED SO FAR ONLY A SMALL AMOUNT OF LISC'S 15 BILLION COMMITMENT HAS BEEN RAISED BUT LISC OFFICIALS AREN'T WORRIED WITH COMMITMENTS FROM COMPANIES SUCH AS BERKSHIRE HATHAWAY INC THE NATIONAL EQUITY FUND HAS RAISED 120 MILLION IN CORPORATE FUNDS IN JUST TWO MONTHS COMPARED WITH 223 MILLION FOR ALL OF LAST YEAR FORPROFIT DEVELOPERS ALSO ARE SCRAMBLING TO TAKE ADVANTAGE OF THE CREDIT WHICH WAS MADE RETROACTIVE TO JUNE 1992 AFTER THE CREDIT EXPIRED PEOPLE ENDED UP TWIDDLING THEIR THUMBS OR TRYING TO DEAL WITH A FEW LITTLE SCRAPS LEFT OVER FROM PREVIOUS YEARS SAID RICHARD GOLDSTEIN A WASHINGTON ATTORNEY WHO REPRESENTS DEVELOPERS AND SYNDICATORS OF THE CREDIT NOW THERE WILL BE A LOT MORE ACTIVITY OVER THE NEXT SIX TO 12 MONTHS PARTLY BECAUSE OF THE BACKLOG OF PROJECTS THAT'S GOOD NEWS FOR THE CONSTRUCTION INDUSTRY ESPECIALLY THE MULTIFAMILY SECTOR WHICH HAS BEEN LAGGING FOR YEARS WE'LL SEE MUCH STRONGER MULTIFAMILY PRODUCTION FOR THE REMAINDER OF THE YEAR PREDICTED MICHAEL CARLINER AN ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS EVEN SO 1993 WILL BE THE WORST YEAR ON RECORD WITH ONLY 154000 MULTIFAMILY UNITS PROJECTED TO BE STARTED NEXT YEAR HOWEVER THE HOMEBUILDERS' GROUP EXPECTS A SIGNIFICANT BOOST IN MULTIFAMILY STARTS BUILDING PERMITS SURGED IN AUGUST NOTED MR CARLINER HE SAID THE CREDIT ACCOUNTS FOR AN AVERAGE OF 60000 UNITS ANNUALLY THAT NUMBER GOES AS HIGH AS 100000 UNITS IF REHABILITATED UNITS ARE INCLUDED ACCORDING TO THE NATIONAL COUNCIL OF STATE HOUSING AGENCIES STILL THE CREDIT DOESN'T OFFER UNLIMITED OPPORTUNITIES BY LAW IT IS CAPPED AT 125 A PERSON PER STATE OR ABOUT 315 MILLION ANNUALLY BUT ADVOCATES PREDICT IT WILL LEAD TO INCREASED HOUSING ACTIVITY FOR SEVERAL REASONS IN THE PAST SOME STATES HAVEN'T USED ALL THEIR CREDITS BECAUSE OF UNCERTAINTY IN THE PROGRAM SUPPORTERS ALSO CONTEND THAT THE PERMANENCY WILL RESULT IN A MARKET THAT IS MORE EFFICIENT IN USING THE CREDITS 9309290091 930929 INTERNATIONAL ITALY'S FIAT MOVES TO RAISE 318 BILLION IN NEW CAPITAL AS BUFFER FOR RECESSION BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL MILAN FIAT SPA LOOKING FOR A BUFFER AGAINST BAD TIMES TOOK STEPS TO RAISE 5 TRILLION LIRE 318 BILLION IN FRESH CAPITAL THROUGH SEVERAL MEASURES INCLUDING A 257 TRILLION LIRA CAPITAL INCREASE AND A SHARE SWAP THE BOARD OF THE ITALIAN AUTO MAKER CONTROLLED BY THE AGNELLI FAMILY SAID IT NEEDED THE NEW CAPITAL TO FACE THIS RECESSIONARY PERIOD TH TRANQUILLITY AND FINANCE ITS INVESTMENT PLANS PART OF THE TRANSACTION WAS A CHANGE IN FIAT'S SHAREHOLDER STRUCTURE INCLUDING AN AGREEMENT AMONG FIVE HOLDERS TO FORM A CONTROLLING SYNDICATE AND A PUBLIC TENDER OFFER BY AN AGNELLI AFFILIATE FOR RETAILER RINASCENTE SPA CONTROLLED BY FIAT FIAT ALSO REPORTED A 966 BILLION LIRA LOSS FOR THE FIRST HALF SWINGING FROM A PRETAX PROFIT OF 655 BILLION A YEAR EARLIER IT PREDICTED THAT UNCONSOLIDATED RESULTS WOULD END 1993 IN THE BLACK EVEN IF LOWER THAN THAT OF THE YEAR EARLIER BUT THAT CONSOLIDATED RESULTS WOULD SHOW A LOSS AND AMID CONTINUED SPECULATION ON WHO WOULD TAKE OVER MANAGEMENT OF THE GROUP FROM THE AGING GRANDSON OF ITS FOUNDER THE COMPANY SAID GIOVANNI AGNELLI AND CESARE ROMITI CHAIRMAN AND CHIEF EXECUTIVE OFFICER WOULD REMAIN AT LEAST UNTIL 1996 A SPOKESMAN SAID FIAT NEEDED CASH AND HAD CONTEMPLATED SELLING NONSTRATEGIC ASSETS BUT HAD DECIDED TO TURN PRINCIPALLY TO THE EQUITY MARKET THE MILAN STOCK MARKET INDEX HAS RISEN 33 SINCE JAN BUT THE MARKET MIGHTN'T REACT ENTHUSIASTICALLY TO FIAT'S MOVES IT'S THE WORST NEWS THE MARKET COULD HAVE EXPECTED SAID ONE ANALYST THE RINASCENTE DEAL THE BAD RESULTS THE CAPITAL INCREASE AND THE CONTROLLING SYNDICATE ALL OF THAT IS BAD NEWS FOR MINORITY SHAREHOLDERS FIAT MADE ITS ANNOUNCEMENTS AFTER THE MILAN MARKET CLOSED BUT RUMORS ABOUT THE COMPANY'S PLANS PARTICULARLY WORD OF A RIGHTS ISSUE DRAGGED DOWN ITS SHARES FIAT FELL 86 LIRE TO FINISH AT 5900 LIRE UNDER THE PLAN FOR THE CONTROLLING SYNDICATE FIAT SAID ITS HOLDING COMPANIES IFI SPA AND IFIL SPA AGREED TO LINK UP WITH FOUR OTHER MAJOR SHAREHOLDERS ALCATELALSTHOM SA DEUTSCHE BANK AG ASSICURAZIONI GENERALI AND MEDIOBANCA IT SAID ASSICURAZIONI GENERALI WOULD BUY ABOUT 24 OF FIAT SPA FROM COMPANIES IN THE FIAT GROUP AT 7000 LIRE A SHARE AND ALCATEL WOULD INCREASE ITS STAKE IN FIAT TO 22 FROM 1 THOSE STAKES ALONG WITH DEUTSCHE BANK'S AND MEDIOBANCA'S WOULD CONSTITUTE 10 OF FIAT'S ORDINARY CAPITAL THEY WOULD JOIN THE AGNELLIS' 20 TO FORM THE SYNDICATE CONTROLLING 30 THE CAPITAL INCREASE WOULD MORE THAN DOUBLE FIAT'S EQUITY CAPITAL TO 4995 TRILLION LIRE THE COMPLEX RIGHTS ISSUE IS EXPECTED TO PROVIDE A TOTAL CASH INJECTION OF 3234 TRILLION LIRE IT INCLUDES A FURTHER OFFER OF 968 MILLION SAVINGS SHARES TO EMPLOYEES FOR A TOTAL OF 194 BILLION LIRE IN ADDITION EVERY NEW SHARE WILL INCLUDE A WARRANT THAT CAN BE CONVERTED AT A RATE OF TWO WARRANTS PER ORDINARY SHARE WHICH COULD PRODUCE 857 BILLION LIRE THE COMPANY ALSO SAID IT WOULD OFFER A SHARE SWAP FOR ITS NEAR 58 HOLDING IN RETAILER RINASCENTE THE SWAP WILL BE AT THE RATE OF FOUR RINASCENTE SHARES FOR EVERY 100 FIAT SHARES 9309290090 930929 INTERNATIONAL RUSSIAN REFORMERS PULL OUT ALL THE STOPS SENSING YELTSIN VICTORY THEY MAKE THEIR MOVE BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW BORIS YELTSIN'S KREMLIN STAFF HAS BEEN WORKING FLAT OUT TO PRINT AND DISTRIBUTE THE FLOOD OF DECREES ISSUED BY THE RUSSIAN PRESIDENT SINCE LAST WEEKEND IN THE OFFICES OF THINKTANKS AND INSTITUTES ACROSS TOWN ADVISERS TO THE GOVERNMENT HAVE BEEN PULLING ALLNIGHTERS TO HELP PREPARE REFORM CZAR YEGOR GAIDAR NEWLY RETURNED FROM POLITICAL EXILE FOR A ROUND OF GOVERNMENT RESOLUTIONS EVERYONE'S TURNING IN HIS WISH LIST SAYS A WESTERN ADVISER TO THE GOVERNMENT AS THE STANDOFF BETWEEN THE PRESIDENT AND PARLIAMENT ENTERS ITS SECOND WEEK MR YELTSIN LOOKS INCREASINGLY LIKELY TO WIN THIS ROUND SO REFORMERS WANT TO SEIZE THE DAY TO PUSH THROUGH CONTROVERSIAL ECONOMIC REFORMS REFORM WILL GET A BIG BOOST IN THE SHORT TERM WITH DECREES AND GOVERNMENT RESOLUTIONS THAT WILL ENCOURAGE FOREIGN INVESTMENT HELP RESTRAIN BUDGET SPENDING AND ACCELERATE PRIVATIZATION OF STATERUN INDUSTRY LIBERALIZATION IS THE KEY WORD FOR THE NEXT FEW WEEKS SAYS ANDREA VICHTER AN AMERICAN ECONOMIST AT THE MOSCOW OFFICE OF THE CENTER FOR ECONOMIC PERFORMANCE A SECTION OF THE LONDON SCHOOL OF ECONOMICS WHICH ADVISES THE RUSSIAN GOVERNMENT BUT IN THE LONGER RUN EVEN IF MR YELTSIN WINS TODAY'S WAR OF NERVES FINANCIAL STABILIZATION AND A MARKET ECONOMY WON'T COME QUICKLY WITH ELECTIONS CALLED FOR DECEMBER THE GOVERNMENT CAN'T AFFORD TO MAKE TOO MANY UNPOPULAR BUDGETCUTTING MOVES SO MOST OF ITS EFFORTS ARE FOCUSED ON EASING REGULATIONS NOT ON FIGHTING INFLATION EVEN SO THE ENTRENCHED ATTITUDES OF MANY ENTERPRISE AND FARM DIRECTORS MAKE IT DIFFICULT TO CHANGE THE WAY BUSINESS IS DONE IN RUSSIA KEY SECTORS REMAIN LARGELY CENTRALLY CONTROLLED AND PROTECTED FROM COMPETITION AND WITH MANY REGIONS OF THE COUNTRY SEEKING INDEPENDENCE SOME MAY WITHHOLD TAXES AND OTHERS MAY TRAP REFORMS IN LOCAL LEGISLATIVE BOTTLENECKS THIS IS THE CRUCIAL QUESTION SAYS ECONOMIST GRIGORY YAVLINSKY HEAD OF EPICENTER AN INDEPENDENT THINKTANK AND A SELFPROCLAIMED CANDIDATE IN ANY FUTURE PRESIDENTIAL ELECTIONS THIS UNILATERAL STRIVING FOR INDEPENDENCE DESTROYS THE CHANCE OF ANY RATIONAL ECONOMIC POLICY MR YELTSIN STEPPED UP THE PRESSURE YESTERDAY ON THE HOLDOUTS IN THE PARLIAMENT BUILDING THE WHITE HOUSE WITH A MAJOR DISPLAY OF FORCE HELMETED RIOT POLICE AND SPECIAL INTERIOR MINISTRY TROOPS SOME ARMED WITH AUTOMATIC RIFLES RINGED THE WHITE HOUSE WHERE ELECTRICITY HOT WATER AND TELEPHONES HAVE BEEN CUT OFF FOR DAYS BARRICADES WERE REINFORCED WITH RAZOR WIRE GASOLINE TRUCKS BLOCKED SOME APPROACHES TO THE AREA AND WATER CANNONS STOOD READY ACCESS TO THE BUILDING WAS STOPPED DEPUTIES WHO HAD LEFT WEREN'T ALLOWED TO REENTER AS A RESULT THE SHRINKING NUMBER OF STALWART SUPPORTERS OF THE BESIEGED LEGISLATURE WHO STOOD WARMING THEIR HANDS OVER BONFIRES COULDN'T RECEIVE THE USUAL EVENING REINFORCEMENTS EARLY IN THE DAY A LOUDSPEAKER MOUNTED ON A YELLOW ARMORED PERSONNEL CARRIER WARNED DEPUTIES AND SUPPORTERS INSIDE THE BUILDING TO GIVE UP THEIR WEAPONS WITHIN 24 HOURS IT DIDN'T SAY WHAT WOULD HAPPEN IF THEY DIDN'T WITH THE POTENTIAL FOR VIOLENT CONFLICT CLEARLY HEIGHTENED RUMORS AGAIN FLEW THAT THE PRESIDENT'S FORCES WERE PLANNING TO STORM THE BUILDING BUT IN THE EARLY EVENING PRESIDENTIAL PRESS SPOKESMAN VYACHESLAV KOSTIKOV DENIED ANY SUCH PLANS I STATE WITH ALL RESPONSIBILITY THAT NO STORM OF THE RUSSIAN WHITE HOUSE HAS BEEN PREPARED READ HIS STATEMENT PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV LOOKING ASHEN WITH DARK RINGS UNDER HIS EYES HELD A NEWS CONFERENCE FROM THE WHITE HOUSE THAT WAS TELEVISED INTERNATIONALLY ON CABLE NEWS NETWORK RUSSIAN TELEVISION AND RADIO ON THE OTHER HAND HAVE REPORTED VERY LITTLE ON LIFE INSIDE THE WHITE HOUSE THEY WANT TO TURN US INTO SOMETHING LIKE A CLOSED CONCENTRATION CAMP MR KHASBULATOV SAID CLAIMING THAT 512 DEPUTIES REMAINED INSIDE AND WERE READY TO STAY AS LONG AS SIX WEEKS SOME PEOPLE SAY THE SITUATION IS HOPELESS BUT I KNOW THE CRIMINAL REGIME WILL FALL BY NIGHTFALL SKIRMISHES BROKE OUT BETWEEN PARLIAMENT SUPPORTERS AND ARMED GUARDS SEVERAL THOUSAND SUPPORTERS MASSED IN A SQUARE NEAR A BACK ENTRANCE TO THE PARLIAMENT AND WERE REPEATEDLY DISBURSED BY GUARDS WIELDING CLUBS PARLIAMENT SUPPORTERS ALSO FLATTENED THE TIRES ON BUSES AND LINED UP THE VEHICLES IN A BARRICADE ACROSS THE CITY'S MAIN RING ROAD TO BLOCK TRAFFIC AT OTHER POINTS THEY PILED UP SHEETS OF METAL PIPES AND BROKEN PAVEMENT THE GOVERNMENT PAINTED AN ENTIRELY DIFFERENT PICTURE GRIGORI BONDAREV A FORMER MEMBER OF PARLIAMENT NOW EMPLOYED AT THE PRESIDENT'S OFFICE SAID MORE THAN 200 LEGISLATORS WERE PLANNING TO DEFECT TO THE GOVERNMENT SIDE AND WERE NEGOTIATING JOB OFFERS WITH AUTHORITIES THE FLIGHT OF LEGISLATIVE STAFF MEMBERS WAS ALSO MASSIVE HE TOLD THE ASSOCIATED PRESS ANOTHER OF MR YELTSIN'S RECENT DECREES OFFERED THE LEGISLATORS AND THEIR STAFFS JOBS AND BENEFITS AT THE SAME LEVEL THEY ENJOY IN THEIR PRESENT POSITIONS AS THE IMPASSE CONTINUES MR YELTSIN'S GOVERNMENT IS RAPIDLY PASSING WHATEVER RESOLUTIONS IT CAN TO HELP PUSH ECONOMIC REFORM FORWARD WITHOUT THE TRIO OF IMPEDIMENTS A RECALCITRANT PARLIAMENT A CENTRAL BANK THAT ANSWERED TO THAT PARLIAMENT AND A STRONG CONSERVATIVE CAMP WITHIN THE GOVERNMENT REFORMERS ARE ENJOYING FREE REIN FOR THE MOMENT SINCE THE PRESIDENT'S DECREE LAST WEEK DISBANDING PARLIAMENT HE HAS ALSO LIBERALIZED BREAD PRICES BANNED SUBSIDIZED CREDITS TO THE MONOPOLIZED AGRICULTURE SECTOR RAISED THE CENTRAL BANK INTEREST RATE AND ENCOURAGED FOREIGN INVESTMENT THE PRESIDENT HAS ALSO ORDERED A NUMBER OF PERSONNEL SHIFTS AND STRUCTURAL CHANGES IN THE ADMINISTRATION THAT STRENGTHEN THE REFORM WING OF THE GOVERNMENT AFTER MONTHS OF STALEMATE NOW A LOT OF LIBERALIZATION IS JUST GOING THROUGH JUST LIKE THAT SAYS ANDERS ASLUND DIRECTOR OF THE STOCKHOLM INSTITUTE OF EAST EUROPEAN ECONOMICS AND AN ADVISER TO THE RUSSIAN GOVERNMENT IT'S GOOD FUN THE FLOW OF DECREES CAN BE EXPECTED TO CONTINUE OFFICIALS SAY SOME OTHERS BEING CONSIDERED INCLUDE STRENGTHENING THE RIGHTS OF SMALL SHAREHOLDERS UNDER PRIVATIZATION BREAKING UP THE HUGE GASINDUSTRY MONOPOLY GAZPROM AND BANNING THE USE OF DOLLARS AND OTHER NONRUBLE CURRENCIES WITHIN RUSSIA AS THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK HOLD THEIR ANNUAL MEETINGS IN WASHINGTON DC REFORMERS IN THE GOVERNMENT HOPE THAT SUCH STRUCTURAL LIBERALIZATION WILL HELP BRING IN MORE WESTERN LENDING EARLIER THIS MONTH THE IMF DECIDED TO WITHHOLD 15 BILLION OF SCHEDULED STANDBY CREDIT BECAUSE RUSSIA HADN'T MET KEY ECONOMIC TARGETS MONTHLY INFLATION IN AUGUST HIT 30 BUT SOME ECONOMISTS WORRY THAT WITHOUT TARGETING INFLATION NOW ALL THE LIBERALIZATION WON'T HAVE ANY LASTING EFFECT ANY SERIOUS CHANGES WILL HAVE TO BE RATIFIED BY A NEW PARLIAMENT THEY SAY AND IF CUTTING INFLATION ISN'T MADE A TOP PRIORITY THERE IS GREAT DANGER THAT VOTEGETTING PROMISES WILL BE HANDED OUT TOO FREELY IN THE ELECTION CAMPAIGNS SOME ADVISERS SUGGEST THAT THE GOVERNMENT USE THIS OPPORTUNITY TO ATTACK SOME OF REFORM'S TOUGHEST OPPONENTS HEADON REGARDLESS OF THE COMING ELECTIONS WE'VE BEEN SAYING LIMIT THE GOODIES TO GROUPS WHO WILL VOTE FOR YOU OR WILL SWING THEIR VOTES TO YOU DON'T THROW GOOD MONEY AFTER BAD' SAYS A FOREIGN ADVISER WHO WORKS CLOSELY WITH THE GAIDAR TEAM 9309290088 930929 WHO'S NEWS RICHARDALLAN PICKS EXUPJOHN OFFICIAL AS PRESIDENT CHIEF RICHLAND MICH WILLIAM U PARFET A FORMER VICE CHAIRMAN OF UPJOHN CO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RICHARDALLAN MEDICAL INDUSTRIES MR PARFET 46 YEARS OLD RESIGNED LAST WEEK FROM THE COMPANY HIS GREATGRANDFATHER HELPED FOUND HE WAS IN CHARGE OF UPJOHN'S FINANCES ALLIED HEALTH BUSINESS AND WORLDWIDE MANUFACTURING AND UNTIL RECENTLY CONSIDERED BY SOME INDUSTRY ANALYSTS AS A CONTENDER TO FILL THE VACANT CHAIRMAN'S POST MR PARFET WILL STILL HOLD A SEAT ON UPJOHN'S BOARD MR PARFET SUCCEEDS RICHARD NEWHAUSER AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR NEWHAUSER 46 YEARS OLD AND A CHILDHOOD FRIEND OF MR PARFET WAS NAMED CHAIRMAN OF RICHARDALLAN RICHARDALLAN IS A CLOSELY HELD COMPANY THAT DEVELOPS AND MANUFACTURES A RANGE OF SURGICAL EQUIPMENT AND MEDICAL SUPPLIES IT HAS ANNUAL SALES OF ABOUT 25 MILLION UPJOHN'S ANNUAL SALES ARE ABOUT 36 BILLION MR PARFET SPOKE OF UPJOHN IN A TELEPHONE INTERVIEW YESTERDAY I FELT WITH ALL OF THE CHANGES AND CHALLENGES FACING THE COMPANY THAT I COULD BEST SERVE AS A BOARD MEMBER REPRESENTING THE FAMILY INTEREST HE ADDED I RECOGNIZED WHERE THE COMPANIES NEEDS WERE AT AGE 46 I DIDN'T SEE MYSELF AS THE NO 1 CONTENDER NOTHING HAD BEEN PROMISED TO ME MR PARFET SAID THEODORE COOPER'S UNTIMELY DEATH IN APRIL FROM COMPLICATIONS FROM A BONEMARROW TUMOR HAS LEFT UPJOHN SEARCHING FOR VERY AGGRESSIVE LEADERSHIP AND THE COMPANY NEEDS SOMEONE WHO CAN TACKLE THE MOUNTING CHALLENGES FACING UPJOHN AND MR PARFET AS HE HAS STATED IN PREVIOUS INTERVIEWS SAID UPJOHN IS OPEN TO ALMOST ANY OPTION WHICH MAY INCLUDE A STRATEGIC ALLIANCE OR MERGER WITH ANOTHER COMPANY NOTHING IS BEING NEGOTIATED RIGHT NOW HE ADDED BUT WE HAVE TO LOOK AT THE LONGTERM BEST INTEREST OF THE COMPANY 9309290087 930929 POLITICS & POLICY ANALYST STEPS INTO THE LIMELIGHT WITH CRUSADE AGAINST NAFTA AFTER WRENCHING CAREER REVERSAL BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE 1980S PAT CHOATE WAS A MOSTLY ANONYMOUS BUT WELLRESPECTED ECONOMIST LABORING AWAY ON SUBJECTS SUCH AS COMPETITIVENESS AND WORKER RETRAINING A COTTON FARMER'S SON FROM MAYPEARL TEXAS HE LENT SEN LLOYD BENTSEN IDEAS ON CAPITALGAINS TAXES AND WAS LAUDED BY REGARDIE'S MAGAZINE AS ONE OF WASHINGTON'S POWER ELITE FOR THE SKILLED ANALYTICAL WORK HE PERFORMED MOSTLY BEHIND THE SCENES TODAY THE 52YEAROLD ANALYST IS WORKING THE TALK SHOWS FIELDING CALLIN QUESTIONS FROM THE AUDIENCE AND AT EVERY OPPORTUNITY TRASHING THE NORTH AMERICAN FREE TRADE AGREEMENT SOMETIMES WITH A XENOPHOBIC RING TO MANY THE FORMER POLICY DEAN HAS BECOME THE PIED PIPER OF PROTECTIONISM SPEAKING ON SHOWS SUCH AS LARRY KING LIVE AT THE ELBOW OF HIS PATRON ROSS PEROT ABOUT HOW NAFTA WILL RUIN AMERICA MR CHOATE'S MIGRATION FROM POLICY WONKING TO CRUSADING IS NOTEWORTHY EVEN IN THIS CITY OF REVERSALS AND REVOLVING DOORS IN CONTRAST TO THE LENGTHY STUDIES HE PRODUCED AS A VICE PRESIDENT OF POLICY ANALYSIS FOR TRW INC THE LATEST WORK SAVE YOUR JOB SAVE OUR COUNTRY COAUTHORED WITH MR PEROT IS BRIEF AND WAS ATTACKED FOR CONTAINING A SLEW OF FACTUAL ERRORS THE OBJECTIVE MR CHOATE SAYS WAS TO SEND UP A FLARE STILL THE AUTHORS DID SEND IN A NUMBER OF CORRECTIONS BEFORE THE SECOND PRINTING BUT THEY STUCK TO THE BOOK'S FUNDAMENTAL CLAIM THAT 59 MILLION US JOBS ARE AT RISK IF CONGRESS GIVES ITS BLESSING TO NAFTA THIS FALL AN ESTIMATE THAT EVEN OTHER OPPONENTS OF THE TRADE PACT PRIVATELY QUESTION HE'S LETTING A VERY HUMAN DESIRE TO HAVE A VOICE SUPERCEDE HIS JUDGMENT SAYS STEVEN HOFMAN A FRIEND OF MR CHOATE'S AND A FORMER LABOR DEPARTMENT OFFICIAL WHO IS PRONAFTA THE NAFTA DEBATE IS ABOUT PROTECTING SOMETHING THAT ISN'T PROTECTABLE AND NOT MOVING INTO THE 21ST CENTURY HOW AND WHY HE MADE THAT INTELLECTUAL SHIFT I DON'T KNOW BUT HE DID PART OF THE ANSWER MAY LIE IN THE UPHEAVAL MR CHOATE HAS WEATHERED RECENTLY HIS NINEYEAR CAREER AT TRW ENDED ABRUPTLY THREE YEARS AGO WHEN THE HIGHTECH COMPANY FIRED HIM FOLLOWING PUBLICATION OF HIS CONTROVERSIAL BOOK AGENTS OF INFLUENCE THE BOOK WHICH DETAILS HOW FORMER US GOVERNMENT OFFICIALS HAWK THEMSELVES TO HELP AMERICA'S FOREIGN RIVALS GET AN EDGE ANGERED A NUMBER OF FOREIGN OFFICIALS INCLUDING SOME FROM JAPAN WHERE TRW DOES CONSIDERABLE BUSINESS MEMORANDUMS CIRCULATED INSIDE THE COMPANY EXPRESSED FEARS THAT THE BOOK MIGHT HURT TRW'S REPUTATION AND COST THE COMPANY BUSINESS A COMPANY MEMO SAID MR CHOATE HAD BECOME KNOWN AS JAPAN'S MOSTFEARED JAPANBASHER TRW FIRED MR CHOATE MR CHOATE NOW REELS OFF HIS LOSSES A 27THFLOOR CORPORATE OFFICE OVERLOOKING WASHINGTON AREA MONUMENTS A 150000 SALARY PLUS STOCK OPTIONS AND A BUSY AND LUCRATIVE SPEAKING CIRCUIT THAT DRIED UP THINK TANKS STOPPED INVITING HIM TO TALKFESTS SIMULTANEOUSLY MR CHOATE'S 25YEAR MARRIAGE UNRAVELED HIS WIFE HAVING LEFT FOR ZURICH TO TRAIN AS A JUNGIAN PSYCHOANALYST AN EMBITTERED MR CHOATE SUED TRW IN A RULING THAT MR CHOATE IS APPEALING A FEDERAL JUDGE SAID TRW DID FIRE HIM BECAUSE OF THE BOOK BUT CONCLUDED THAT WAS JUST CAUSE TRW HAS DENIED ANY WRONGDOING MEANWHILE MR CHOATE STARTED WORKING ON HIS OWN INITIALLY OUT OF HIS CAPITOL HILL HOME AND LATER FROM A SMALL RENTED OFFICE FILLED WITH USED FURNITURE ONE OF HIS FIRST PROJECTS WAS PREPARING A MONOGRAPH ON THE HISTORY OF THE INTERSTATE HIGHWAY SYSTEM FOR THE AMERICAN TRUCKING ASSOCIATION THE SOFTSPOKEN MR CHOATE NOW SAYS HIS IS A LIFE OF TOTAL REJECTION HE QUICKLY LISTS THE NAMES OF CLINTON ADMINISTRATION OFFICIALS LAWMAKERS LAWYERS AND ECONOMISTS WHO ASSAIL HIS WORK ADDING IN A TEXAS DRAWL IT'S A LIFE OF CUTTING YOUR OWN SWITCHES FOR YOUR OWN WHIPPINGS MEANWHILE MR CHOATE IS JUGGLING THE MANY INVITATIONS FOR RADIO AND TELEVISION APPEARANCES AND LIVE DEBATES THAT HAVE BEEN SPARKED BY THE ANTINAFTA CAMPAIGN HE MOUNTED WITH MR PEROT THE BILLIONAIRE GADFLY BECAME A SOUL MATE OF MR CHOATE AFTER THE PUBLICATION OF AGENTS OF INFLUENCE DURING HIS PRESIDENTIAL CAMPAIGN MR PEROT CONSTANTLY CITED THE BOOK WHOSE MESSAGE SUPPORTED HIS WARNINGS THAT FOREIGN LOBBYISTS WERE UNDERMINING US INTERESTS FOR HIS PART MR CHOATE STANDS SQUARELY BEHIND THE TEXAS INDEPENDENT ROSS PEROT CAN MAKE IT HAPPEN SAYS MR CHOATE HE'S THE MOST POSITIVE FORCE FOR CHANGE MR CHOATE HAS ALSO LINKED UP WITH ROGER MILLIKEN THE SOUTH CAROLINA TEXTILE BARON AND FIERCE PROPONENT OF PROTECTIONIST POLICIES MR MILLIKEN PUMPS ABOUT 120000 A YEAR INTO MR CHOATE'S CONSULTING PRACTICE MANUFACTURING POLICY PROJECT WHOSE ANNUAL BUDGET IS ABOUT 340000 MR CHOATE SAYS HE CONSIDERED STARTING A RADIOTELEVISION VENTURE BANKROLLED AT LEAST PARTLY BY MR MILLIKEN BUT THAT IDEA HAS FIZZLED THE BIG THREE AUTO MAKERS ALSO GIVE MONEY TO MR CHOATE'S CONSULTANCY NOTWITHSTANDING HIS LINKS WITH MESSRS PEROT AND MILLIKEN MR CHOATE RESISTS THE PROTECTIONIST LABEL THERE IS A LOT OF NAME CALLING HE SAYS PEOPLE CALL YOU A NATIVIST OR A RACIST OR A PROTECTIONIST BUT THE PEOPLE MAKING THE ARGUMENTS MISS OUR POINT IT'S NOT ABOUT KEEPING OUT CHEAP IMPORTS FROM MEXICO THE ISSUE IS ABOUT A TRADE AGREEMENT THAT WILL SUCK US JOBS OUT MR CHOATE'S ADMIRATION FOR MR PEROT IS UNFLAGGING SITTING AT MR PEROT'S LEFT ON A RECENT AIRING OF THE CNN TALK SHOW LARRY KING LIVE MR CHOATE WAS QUIETLY NODDING HIS HEAD IN AGREEMENT AS MR PEROT'S SLAMMED NAFTA EARLIER THIS MONTH HE FLEW WITH MR PEROT ON THE TEXAS BILLIONAIRE'S JET TO LANSING MICH FOR AN ANTINAFTA RALLY MR CHOATE REGALES A VISITOR WITH STORIES OF HOW MR PEROT PULLED OUT THE SAME REMINGTON PORTABLE TYPEWRITER HE USED WHILE A STUDENT AT THE NAVAL ACADEMY AND POUNDED OUT HIS RALLY SPEECH IT WAS AMAZING SAYS MR CHOATE WHAT HE PROVIDES TO MR PEROT IS AN ECONOMIST'S CREDENTIALS TO BACK HIS MESSAGE RESPONDING TO A QUESTION DURING A CABLE CALLIN SHOW MR PEROT WAS QUICK TO POINT OUT MR CHOATE'S BONA FIDES HE'S A PHD HE'S AN ECONOMIST HE'S A MAN THAT UNDERSTANDS TRADE THE BALDING AND BEARDED MR CHOATE HAS A CERTAIN CHARM THAT GIVES HIM THE SAME SORT OF POPULIST APPEAL MR PEROT HAS SCULPTED HE PUNCTUATES SENTENCES WITH GOSH AND BY GEORGE HE TALKS WHIMSICALLY ABOUT PLAYING HIGHSCHOOL BASKETBALL IN MAYPEARL WHERE HIS GRADUATING CLASS NUMBERED ONLY NINE PEOPLE HE NOTES THAT HIS FATHER DIDN'T NAME HIM PATRICK OR GIVE HIM A MIDDLE NAME SO HE'D HAVE A SIMPLE NAME OF JUST PAT IN A MEETING ROOM BUILT UNDER THE STEPS OF THE US CAPITOL HE IS THE ONLY ONE OF THREE SPEAKERS TO RISE FROM HIS CHAIR WHILE SPEAKING TO THE ASSEMBLED GROUP OF HOUSE REPUBLICAN TRADE LEGISLATIVE AIDES HE SLICES THE AIR FEVERISHLY WHILE CHARGING THAT ONLY BIG CORPORATIONS SUPPORT NAFTA HE ENDS BY GIVING THE AIDES HIS TELEPHONE AND FACSIMILE MACHINE NUMBERS FROM THE OTHER END OF THE SPEAKERS' TABLE REPUBLICAN REP DUNCAN HUNTER OF CALIFORNIA A NAFTA OPPONENT PIPES IN DON'T FAX ANY HATE MESSAGES RELISHING HIS CURRENT ROLE IN THE UPROAR OVER TRADE MR CHOATE GIGGLES AND SAYS THAT'S OKAY I'LL ADD 'EM TO THE STACK 9309290086 930929 GM TO SELL 80 STAKE IN ACTUATORS UNIT TO ITT CORP IN 400 MILLION ACCORD BY OSCAR SURIS AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MOTORS CORP AGREED TO SELL AN 80 STAKE IN ITS MOTORS AND ACTUATORS BUSINESS TO ITT CORP FOR 400 MILLION THE PROPOSED SALE OF THE UNIT WHICH MAKES MOTORS AND WIPER SYSTEMS FOR GM'S DELCO CHASSIS DIVISION IS PART OF A CONTINUING EFFORT AT GM TO SHED 14 OF ITS AUTOMOTIVE COMPONENTS GROUP WHICH HAD SALES OF 24 BILLION LAST YEAR ALTHOUGH THE OPERATIONS COVERED BY THE AGREEMENT DON'T EMPLOY MEMBERS OF THE UNITED AUTO WORKERS UNION THE ANNOUNCEMENT COMES AS GM IS HOPING TO CONVINCE THE UNION IN CONTRACT TALKS THAT IT NEEDS TO CUT ITS WORK FORCE TO BECOME COMPETITIVE EARLIER THIS MONTH GM SOLD FIVE PARTSMAKING PLANTS EMPLOYING 6800 UAW WORKERS IT SUGGESTS THAT GM WILL CONTINUE TO RESTRUCTURE THROUGH THE LABOR NEGOTIATION PROCESS SAID JOHN CASESA AN AUTO INDUSTRY ANALYST WITH WERTHEIM SCHRODER IN NEW YORK I WOULD LIKE TO SEE MORE OF THESE DEALS IN DECEMBER GM SAID IT WOULD SELL ANY PARTS OF THAT GROUP THAT DID NOT FIT INTO THE AUTO MAKER'S CORE BUSINESS STRENGTHS SINCE THEN THE DIVISION HAS CLOSED THREE PLANTS AND SOLD BUSINESSES THAT ANALYSTS ESTIMATE HAVE PROBABLY RAISED CLOSE TO 1 BILLION FOR THE AUTO MAKER UNDER THE TERMS OF THE AGREEMENT NEW YORKBASED ITT HOLDS AN OPTION TO BUY THE REMAINING 20 OF THE BUSINESS WITHIN THREE YEARS AT A FIXED PRICE THE CASH TRANSACTION HOWEVER ALREADY REPRESENTS ITT'S LARGEST ACQUISITION SINCE 1970 WHEN THE COMPANY ACQUIRED HARTFORD INSURANCE GROUP FOR 188 BILLION WE STILL HAVE SEVERAL PARTS OF OUR BUSINESS THAT WE ARE NEGOTIATING TO SELL WITH OTHER PARTNERS SAID JT BATTENBERG III A GM VICE PRESIDENT AND THE GROUP EXECUTIVE FOR THE AUTOMOTIVE COMPONENTS GROUP WE ARE TRYING TO BECOME A SELFFUNDING OPERATION OF GM THE MOTORS AND ACTUATORS UNIT WHICH MAKES MOTORS AND WIPER SYSTEMS FOR GM'S DELCO CHASSIS DIVISION HAD REVENUE OF 760 MILLION LAST YEAR AND EMPLOYED 5451 PEOPLE AT FOUR PLANTS IN NEW YORK OHIO AND MEXICO THE WORK FORCE INCLUDES 3156 HOURLY WORKERS REPRESENTED BY THE INTERNATIONAL UNION OF ELECTRICAL WORKERS IN ROCHESTER NY THE SALE GIVES GM ADDED CASH AT A TIME WHEN IT IS STILL LOSING MONEY IN NORTH AMERICA HAS HIT SNAGS IN PRODUCTION AND FACES AN ESTIMATED UNFUNDED PENSION LIABILITY OF 14 BILLION THE AUTO MAKER'S PENSION LIABILITY IS EXPECTED TO RISE TO AS MUCH AS 25 BILLION IF IT CANNOT WIN A MORE FAVORABLE CONTRACT THAN THE INDUSTRY PATTERN AGREEMENT REACHED EARLIER THIS MONTH BETWEEN THE UAW AND FORD MOTOR CO ANALYSTS ALSO SUGGESTED THE TRANSACTION GIVES ITT'S AUTO UNIT ITT AUTOMOTIVE NEEDED BALANCE NOT ONLY IN ITS CLIENT BASE AND ITS GEOGRAPHIC PRESENCE BUT ALSO IN ITS PRODUCT MIX THE REASON THAT WE'RE SO VERY INTERESTED IN DOING THIS IS THAT IT HAS A TREMENDOUS MARKET SHARE FIT FOR US GLOBALLY IN PRODUCT AREAS WHERE WE ARE ALREADY VERY STRONG SAID RAND ARASKOG CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF ITT IN A PHONE INTERVIEW FROM PARIS IN 1992 ITT AUTOMOTIVE REPORTED SALES OF 35 BILLION AND OPERATING PROFIT OF ABOUT 118 MILLION WITH THE ADDITION OF THE GM UNIT THE AUTOMOTIVE BUSINESS WILL REPRESENT MORE THAN HALF OF ITT'S MANUFACTURING REVENUE IN 1992 ITT HAD 2165 BILLION IN SALES ABOUT 65 BILLION FROM MANUFACTURING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITT SHARES CLOSED UP 175 AT 9375 GM SHARES CLOSED DOWN 25 CENTS AT 45 9309290084 930929 WHO'S NEWS HORMEL FOODS CORP HORMEL FOODS CORP AUSTIN MINN JOEL W JOHNSON 50YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS FOOD PRODUCER SUCCEEDING RICHARD L KNOWLTON 61 WHO REMAINS CHAIRMAN 9309290083 930929 SMALL STOCK FOCUS SMALLCAPITALIZATION STOCKS GAIN AGAIN RIDING RALLY TO THIRD CONSECUTIVE HIGH BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCAPITALIZATION STOCKS MANAGED TO POST MODEST GAINS TOSSING PRICES INTO RECORD TERRITORY AGAIN THE RUSSELL 2000 INDEX WHICH TRACKS SMALLCOMPANY ISSUES TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES INCHED UP 070 POINT OR 028 TO FINISH AT 25069 ITS THIRD CONSECUTIVE HIGH BUT THE DOW JONES INDUSTRIAL AVERAGE DECLINED SLIGHTLY AFTER RALLYING SHARPLY MONDAY THE BAROMETER FELL 168 POINTS OR 005 TO FINISH AT 356602 SOME TRADERS SAID SMALLCAP ISSUES OUTPERFORMED THEIR LARGER BRETHREN LARGELY BECAUSE OF GOOD UPWARD MOVES AMONG TECHNOLOGY LEADERS WHICH HELPED PULL THE REST OF THE GROUP HIGHER INTEL JUMPED 2 3/8 TO 72 3/4 AND APPLIED MATERIALS LEAPT 3 1/4 TO 78 1/2 FOLLOWING SUIT WAS MILWAUKEEBASED ARI NETWORK SERVICES CLIMBING 7/8 OR 226 TO 4 3/4 SEQUOIA SYSTEMS OF MARLBOROUGH MASS ADDED 3/8 TO 3 1/8 CHRIS MCLELLAN MANAGING DIRECTOR IN CHARGE OF TRADING AT ROBERTSON STEPHENS & CO SAID TECH ISSUES ARE HOLDING FIRM ON EXPECTATIONS THAT THIRDQUARTER EARNINGS IN THE GROUP WILL EXCEED ANALYSTS' EXPECTATIONS BUT WILLIAM HANEMAN SENIOR VICE PRESIDENT OF NASDAQ OVERTHECOUNTER TRADING AT LEGG MASON WOOD WALKER CHARACTERIZED THE DAY AS FAIRLY SLOW I WOULDN'T SAY THERE'S BEEN A LACK OF INTEREST BUT THERE JUST HASN'T BEEN ANY CONCENTRATION ON ANY SPECIFIC AREAS HE SAID THE TRADER ADDED THAT THE IMPENDING END OF THE QUARTER WILL BE A FOCUS AND THE NEXT COUPLE OF SESSIONS MIGHT CONSIST OF SOME REGROUPING ADVANCING ISSUES ON THE NASDAQ JUMPED AHEAD OF DECLINERS 1533 TO 1336 ON NASDAQ NATIONAL MARKET VOLUME OF 236078500 SHARES MONDAY TURNOVER TOTALED 225910600 SHARES MEANWHILE LONGTERM BOND PRICES EDGED HIGHER WITH THE 30YEAR BOND'S YIELD STILL BELOW THE 6 MARK AT ABOUT 594 INTEREST RATESENSITIVE STOCKS PERFORMED WELL AGAIN WAINWRIGHT BANK GAINED 1/2 TO 3 1/16 MARBLE FINANCIAL 1 3/4 TO 11 1/4 AND NATIONAL MERCANTILE BANCORP 7/8 TO 4 3/4 IN THE COMMUNICATIONS GROUP SPECTRUM INFORMATION TECHNOLOGIES TOPPED THE NASDAQ MOST ACTIVE LIST WITH VOLUME OF ABOUT 82 MILLION SHARES ABOUT SIX TIMES THE AVERAGE DAILY NUMBER THE MANHASSET NY COMPANY WHICH ROSE 1 1/16 TO 6 SAID IT RECEIVED A PATENT FOR TECHNOLOGY TO DIRECTLY CONNECT PORTABLE COMPUTERS TO CELLULAR TELEPHONES NEW ISSUES SPARKLED AGAIN BROADCASTING PARTNERS FOR EXAMPLE CLOSED AT 17 1/2 ABOVE ITS INITIAL PRICE OF 1450 A SHARE LATE MONDAY THE OPERATOR OF RADIO STATIONS IN NEW YORK CHICAGO DETROIT AND DALLAS PLANS TO USE PROCEEDS TO REPAY A TERM LOAN TO REDEEM PRINCIPAL AND INTEREST ON NOTES AND PREFERRED STOCK AND TO REDUCE FUNDS UNDER THE REVOLVING PORTION OF THE SENIOR CREDIT FACILITY IN THE MEDICALRELATED GROUP DNX JUMPED 1 1/4 OR 37 TO 4 5/8 THE PRINCETON NJ FIRM SAID IT HAS RECENTLY DEVELOPED TRANSGENIC ANIMALS POSSESSING CRITICAL ELEMENTS THAT MIGHT ENABLE THE TRANSPLANTATION OF ANIMAL ORGANS TO HUMANS WITH A REDUCED RISK OF ORGAN REJECTION EMISPHERE TECHNOLOGIES SAID SANDOZ AG'S SANDOZ PHARMACEUTICALS SUBSIDIARY HAS DECIDED NOT TO UNDERTAKE CLINICAL DEVELOPMENT OF AN ORAL FORMULATION OF EMISPHERE'S ORAL DELIVERY SYSTEM HAWTHORNE NYBASED EMISPHERE SLIPPED 1 1/2 TO 10 1/2 KEMPER PUT AN INITIAL LONGTERM BUY SPECULATIVE RISK RECOMMENDATION ON LIPOSOME WHICH ROSE 1 3/8 TO 7 1/8 TANDYCRAFTS ADDED 7/8 TO 14 7/8 ON THE NEW YORK STOCK EXCHANGE FOLLOWING ITS ANNOUNCEMENT THAT IT HAS PURCHASED BIRDLEGS AND DIVERSIFIED SPORTS TERMS OF THE AGREEMENTS WEREN'T DISCLOSED TANDYCRAFTS BASED IN FORT WORTH TEXAS OPERATES SPECIALTY RETAIL OUTLETS HEXCEL NYSE LOST 1 TO 6 7/8 THE COMPANY SAID ITS PLAN TO SIGNIFICANTLY EXPAND THE RESTRUCTURING PROGRAM INITIATED LATE LAST YEAR WILL FORCE IT TO TAKE A RESTRUCTURING CHARGE FOR CONTINUING OPERATIONS OF 50 MILLION BEFORE TAXES IN THE THIRD QUARTER THE PLEASANTON CALIF DEVELOPER OF MATERIALS USED FOR COMMERCIAL AEROSPACE ALSO SAID IT WILL TAKE A 28 MILLION WRITEDOWN FOR DISCONTINUED OPERATIONS IN THE QUARTER PAINEWEBBER RAISED ITS INVESTMENT RATING TO BUY FROM NEUTRAL ON FOUR STEEL STOCKS ON THE BIG BOARD WEIRTON STEEL OF WEIRTON WVA ROSE 7/8 TO 7 3/4 AND NATIONAL STEEL OF MISHAWAKA IND CLIMBED 1/4 TO 12 1/2 9309290082 930929 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK EDWARD M O'LEARY 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OPERATIONS A NEW POSITION AT THE DIRECTORY INFORMATION SERVICES SEGMENT OF THIS BUSINESS INFORMATION COMPANY MR O'LEARY HAD BEEN SENIOR VICE PRESIDENT WORLDWIDE OPERATIONS FOR D&B'S NCH PROMOTIONAL SERVICES UNIT 9309290080 930929 WHO'S NEWS TENERA LIMITED PARTNERSHIP TENERA LIMITED PARTNERSHIP BERKELEY CALIF BARRY LAWSON WILLIAMS WAS ELECTED TO THE BOARD OF THIS SOFTWARE CONCERN'S GENERAL PARTNER TEKNEKRON TECHNOLOGY CORP MR WILLIAMS PRESIDENT OF WILLIAMS PACIFIC VENTURES INC A VENTURE CAPITAL CONSULTANT SUCCEEDS THOMAS LOO ON THE SIXMEMBER BOARD MR LOO CONTINUES AS TENERA'S GENERAL COUNSEL 9309290079 930929 INTERNATIONAL FORMER OFFICIAL OF BCCI IS SENTENCED IN LONDON LONDON AP A FORMER SENIOR OFFICIAL OF THE BANK OF CREDIT & COMMERCE INTERNATIONAL WAS SENTENCED TO SIX YEARS IN PRISON FOR FALSE ACCOUNTING OF 765 MILLION SEYED ZIAUDDIN ALI AKBAR HEAD OF THE BCCI HOLDINGS LUXEMBOURG SA UNIT'S TREASURY DIVISION UNTIL 1986 PLEADED GUILTY MONDAY TO 16 CHARGES THE PROSECUTION CALCULATED THE DIVISION MISUSED 12 BILLION BEFORE THE BANK WAS SHUT DOWN BY REGULATORS THE 48YEAROLD MR AKBAR WHO WAS EXTRADITED FROM FRANCE WAS ESTIMATED TO HAVE PERSONALLY GAINED OR MISUSED 61 MILLION OVER FOUR YEARS THE JUDGE SIR SCOTT BAKER SAID THE 19 MONTHS MR AKBAR SPENT IN A FRENCH PRISON WOULD COUNT TOWARD HIS SENTENCE REGULATORS AT THE BANK OF ENGLAND AND IN OTHER COUNTRIES ORDERED THE CLOSURE OF BCCI IN JULY 1991 AUTHORITIES SAID THE BANK WAS INVOLVED IN MASSIVE FRAUD AND USED BY THIRD WORLD DICTATORS AND BY DRUG AND ARMS DEALERS 9309290078 930929 HOME SHOPPING DELAYS DECISION ON QVC MERGER HOME SHOPPING NETWORK INC SAID IT WILL PUT A MERGER PROPOSAL FROM QVC NETWORK INC ON THE BACK BURNER UNTIL QVC'S BID FOR PARAMOUNT COMMUNICATIONS INC IS CLARIFIED GERALD F HOGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ST PETERSBURG FLABASED HOME SHOPPING SAID A SPECIAL INDEPENDENT COMMITTEE OF HOME SHOPPING'S BOARD WILL CONTINUE NEGOTIATIONS WITH QVC WHEN THE STATUS OF QVC'S BID FOR PARAMOUNT BECOMES CLEARER HE SPOKE AT THE COMPANY'S ANNUAL MEETING WE BELIEVE IT IS IN THE BEST INTEREST OF HSN STOCKHOLDERS TO CONSIDER FULLY THE IMPACT OF A POSSIBLE QVC/PARAMOUNT DEAL BEFORE PURSUING FURTHER DISCUSSIONS WITH QVC MR HOGAN SAID CURRENTLY QVC HAS PROPOSED TO ACQUIRE PARAMOUNT FOR CASH AND STOCK VALUED AT 99 BILLION MEANWHILE THE FEDERAL TRADE COMMISSION IS CONTINUING TO STUDY ANTITRUST ISSUES THAT MAY INVOLVE THE PROPOSED QVCHOME SHOPPING MERGER FTC OFFICIALS SAID MR HOGAN ALSO SAID SALES RESULTS FOR SEPTEMBER HAVE STRENGTHENED SOMEWHAT COMPARED WITH THE PRIOR PERIOD HOWEVER SALES FOR THE YEAR ARE EXPECTED TO BE LOWER THAN 1992 SALES 9309290077 930929 MASSACHUSETTS PLAN AIMS FOR POLLUTIONCREDIT TRADE BOSTON THE MASSACHUSETTS DEPARTMENT OF ENVIRONMENTAL PROTECTION SAID THE STATE PLANS TO BE THE FIRST IN THE COUNTRY TO IMPLEMENT A STATEWIDE SYSTEM FOR TRADING POLLUTION CREDITS THE GOAL OF TRADING POLLUTION CREDITS IS TO BRING MARKET FORCES TO EMISSIONS CONTROL WHEN A COMPANY REDUCES EMISSIONS TO BELOW FEDERAL STANDARDS IT CAN GET CREDITS THAT IT CAN SAVE FOR FUTURE USE OR SELL TO OTHER COMPANIES THAT PLAN TO EXPAND OPERATIONS THE 1990 CLEANAIR LAWS PERMIT SUCH TRADING UTILITIES ALREADY TRADE SULFUR DIOXIDE EMISSIONS CREDITS ON A NATIONAL BASIS MASSACHUSETTS SAID ITS SYSTEM COVERS VOLATILE ORGANIC COMPOUNDS NITROGEN OXIDES AND CARBON MONOXIDE COMPANIES CAN GET CREDIT FOR REDUCING AUTOMOTIVE POLLUTION BY SWITCHING TO NATURALGAS OR ELECTRIC VEHICLES MASSACHUSETTS ENVIRONMENTAL AFFAIRS SECRETARY TRUDY COXE SAID WE WILL GET SUBSTANTIAL REDUCTIONS IN AIR POLLUTION BUT THIS WILL LET THE MARKET DECIDE THE CHEAPEST PLACE TO GET THOSE REDUCTIONS THE PLAN WILL GO INTO EFFECT NEXT YEAR ASSUMING FEDERAL APPROVAL 9309290076 930929 LEISURE & ARTS BOOKSHELF A STRIPPER A CONGRESSMAN AND HIS HANDLERS BY TOM NOLAN THE SURREALISTIC FRINGE OF CONTEMPORARY FLORIDA IS THE TURF CARL HIAASEN HAS MADE HIS OWN BOTH AS A COLUMNIST FOR THE MIAMI HERALD AND AS THE AUTHOR OF A SERIES OF BIZARRELY COMIC REGIONAL THRILLERS HIS LATEST NOVEL STRIP TEASE KNOPF 354 PAGES 21 IS A ZANY AND HIGHLY EFFECTIVE TALE INVOLVING A FEISTY TOPLESS DANCER A LUSTDRUNK US CONGRESSMAN AND THE CONGRESSMAN'S MENACING HANDLERS ERIN GRANT IS THE DANCER A DIVORCEE WHOSE EARNINGS FROM THE EAGER BEAVER STRIP JOINT NEAR FORT LAUDERDALE ARE FINANCING A BATTLE TO WIN CUSTODY OF HER YOUNG DAUGHTER FROM A FELONIOUS EXHUSBAND THE CONGRESSMAN IS DAVID DILBECK A LOOSE CANNON WHOSE UPCOMING VOTE FOR SUGAR PRICE SUPPORTS IS CRUCIAL TO A WEALTHY FLORIDA FAMILY THE CHIEF FIXER IS MALCOLM MOLDOWSKY AN INSIDER'S INSIDER' WHO ARRANGES THE DIRTY DEEDS THAT NO ONE ELSE NEED KNOW ABOUT MOLDOWSKY'S TROUBLES BEGIN WHEN THE CONGRESSMAN GOES BERSERK IN THE EAGER BEAVER DEFENDING ERIN'S HONOR BY BRUTALLY BEATING ANOTHER PATRON THE FIXER'S JOB GETS MORE COMPLICATED WHEN DILBECK BECOMES WEIRDLY INFATUATED WITH GRANT ENSUING BLACKMAIL AND LEGAL THREATS LEAD TO MURDER AND THE DANCER IS CAUGHT BETWEEN THE LETHAL LOBBYISTS AND HER CRAZED EXMATE THE PLOT IS KEPT GOING CLEVERLY WITH QUICK SHIFTS FROM ONE TO ANOTHER IN A LARGE CAST OF GROTESQUES THAT INCLUDES A BALDHEADED BEHEMOTH OF A CLUB BOUNCER AND A PERSISTENT POLICE DETECTIVE WITH A COOLER IN HIS CAR TO PRESERVE RANDOM BODY PARTS FOUND IN THE LINE OF DUTY JACOB CRUMLEY ATTEMPTS AN EQUALLY QUIRKY BLEND OF CRIMINAL DOINGS AND GONZO PROSE IN THE MEXICAN TREE DUCK MYSTERIOUS PRESS 247 PAGES 1995 THE FIRST NOVEL FROM THIS LITERATE STYLIST IN SOME 10 YEARS THE NARRATOR IS PRIVATE DETECTIVE CW SUGHRUE LAST ENCOUNTERED IN 1978'S THE LAST GOOD KISS HE'S IN WESTERN MONTANA ABOUT TO RESUME HIS PRIVATEEYE CAREER AFTER PUTTING A FLAMBOYANT END TO A LENGTHY HIATUS AS A SALOONKEEPER IN A PRELUDE THAT PLAYS LIKE AN OLD SATURDAY NIGHT LIVE SKETCH SUGHRUE IS HIRED BY A SCROFULOUS BIKER CHIEF TO FIND A WOMAN NAMED SARITA CISNEROS PINES WHOM THE BIKER CLAIMS IS HIS LONGLOST MOTHER BUT WHO IS ACTUALLY THE WIFE OF A PROMINENT OILMAN THE CHASE TAKES HIM THROUGH SEVERAL STATES AND INTO MEXICO ACCOMPANIED BY VARIOUS CRONIES AND FELLOW VIETNAM VETERANS WHO SIGN ON FOR PART OR ALL OF THE MISSION IT SOON SEEMS CLEAR THAT SUGHRUE AND HIS WILD BUNCH BURNING BRIDGES AND ABUSING SUBSTANCES AT A CHAMPION PACE ARE BATTLING GHOSTS FROM THE PAST AS WELL AS TODAY'S KIDNAPPERS AND COCAINE COWBOYS THE LAST HALF OF TREE DUCK COMBINES WAR NOVEL AND REVENGE THRILLER WITH ENOUGH EXPLODING TORSOS TO FILL A LARGE MEAT HAMPER HERE AND THERE BRILLIANT BITS AND PIECES OF MR CRUMLEY'S FAMOUS HARDBOILED POETRY ARE HEARD OVER AND NARRATOR OF SMILLA'S SENSE OF SNOW FARRAR STRAUS & GIROUX 453 PAGES 21 A REMARKABLE NOVEL BY PETER HOEG IS A 37YEAROLD WOMAN OF DANISH AND INUIT PARENTAGE WHO POSSESSES A GREAT AFFINITY FOR COLD TEMPERATURES RAISED IN GREENLAND AND LIVING IN DENMARK SMILLA IS AN UNPREDICTABLE MIX OF EUROPEAN SOPHISTICATION AND PRIMITIVE SURVIVAL SKILLS HER SINGULAR TENACITY LEADS SMILLA TOWARD THE ICY CENTER OF A MYSTERIOUS CONSPIRACY SMILLA'S DANGEROUS QUEST BEGINS AFTER THE DEATH OF HER SIXYEAROLD FRIEND ISAIAH AN INUIT BOY FOR WHOM SMILLA HAD BECOME A SORT OF SURROGATE MOTHER ISAIAH'S FATAL FALL FROM A SNOWCOVERED COPENHAGEN ROOF IS RULED AN ACCIDENT A DREADFUL MISHAP DURING SOLITARY PLAY BUT SMILLA KNOWS THE CHILD HAD A FEAR OF HEIGHTS AS SHE POKES AGGRESSIVELY INTO THE OFFICIAL INVESTIGATION SMILLA ATTRACTS THE DANGEROUS ATTENTION OF SOME HIGHLYPLACED FOES SMILLA'S SENSE OF SNOW IS A CONSIDERABLE ACHIEVEMENT A RIVETING SUSPENSE TALE THAT BECOMES AN EQUALLY EFFECTIVE ADVENTURE THRILLER IT DEFTLY CONJURES AN EXTERNAL WORLD OF PERILOUS BEAUTY AND WITH EQUAL ADEPTNESS CONVEYS SMILLA'S UNEASY INNER BALANCE OF SCIENTIFIC AND INSTINCTIVE KNOWLEDGE MOST IMPRESSIVE OF ALL PERHAPS IS THE BOOK'S LANGUAGE AT ONCE SENSUOUS AND TECHNICAL FULLY UP TO CONVEYING THE DIFFERENCES IN 17 GRADATIONS OF SNOW IT IS STARTLING TO REALIZE THIS NOVEL WAS WRITTEN BY MR HOEG IN DANISH AND THEN ELEGANTLY RENDERED INTO ENGLISH BY TIINA NUNNALLY THE ONLY PART OF THE BOOK THAT READS AS IF TRANSLATED IS ITS TITLE TONY HILLERMAN SACRED CLOWNS HARPERCOLLINS 305 PAGES 23 HAS THE AUTHOR'S NAVAJO TRIBAL POLICEMEN JIM CHEE AND JOE LEAPHORN UNEASILY WORKING TOGETHER IN THE SAME UNIT THAT'S ONE OF THE MANY CHARMS OF MR HILLERMAN'S WELLWRITTEN SERIES RELATIONSHIPS SEEM TO CHANGE AS SLOWLY AS THE SOUTHWESTERN TOPOGRAPHY AS USUAL LEAPHORN AND CHEE ARE OPERATING AT SLIGHTLY CROSS PURPOSES TO SOLVE TWO CRIMES WHICH AT FIRST SEEM UNRELATED A KOSHARE A SACRED CLOWN IS KILLED DURING A RELIGIOUS CEREMONY A HIGH SCHOOL INSTRUCTOR IS MURDERED IN HIS CLASSROOM BUT THE VICTIMS HAD SOMETHING IN COMMON BOTH WERE VALUABLE MEN WHO WENT OUT OF THEIR WAY TO HELP OTHERS THE POLICEMEN FOLLOW THIS SLIM THREAD THROUGH A MAZE OF TRIBAL HISTORY AND CURRENT POLITICS TO A SURPRISING AND SATISFYING CONCLUSION 9309290075 930929 LETTERS TO THE EDITOR MAIN STREET BROUGHT US BACK TO LIFE IN RESPONSE TO JOHN L GANN'S AUG 30 EDITORIAL PAGE ARTICLE MAIN STREET VS WALMART IT'S A MYSTERY TO ME WHY YOU WOULD LET MR GANN SLAM A GRASSROOTS COMMUNITY BASED EFFORT TO PROTECT THE INTERESTS OF SMALL AND MIDSIZED COMMUNITIES THROUGHOUT AMERICA WHILE HE MAKES SOME VALID POINTS ABOUT STRATEGIES THAT SMALL TOWN MERCHANTS SHOULD ADOPT WHEN FACING COMPETITION FROM WALMART HE OBVIOUSLY IS NOT FAMILIAR WITH THE MAIN STREET PROGRAM BECAUSE WE ESPOUSE THE SAME APPROACH HE DOES YES THE REHABILITATION OF OLDER DOWNTOWN BUILDINGS IS PART OF THE STRATEGY BECAUSE IT MAKES SENSE IN TODAY'S ECONOMIC ENVIRONMENT TO RECYCLE THESE STRUCTURES AND THE INFRASTRUCTURE SUPPORTING THEM IF THE 1980S COMMERCIAL REAL ESTATE FIASCO TAUGHT US ANYTHING IT WAS THAT WE LEARN HOW TO USE WHAT WE HAVE TO BETTER ADVANTAGE MR GANN'S POINT ABOUT WALMART'S INVESTMENT IN COMMUNITIES IS ABSURD YES WALMART PAYS PROPERTY TAXES BUT IT IS MORE ACCURATE TO TALK ABOUT THE DOLLARS IT AND OTHER MASS MERCHANDISERS SUCK OUT OF THE COMMUNITY AS THE DAY'S RECEIPTS ARE WIRED TO A BANK IN ARKANSAS AND HAS ANYONE EVER BOTHERED TO DETERMINE WHAT WALMART COSTS A COMMUNITY IN TERMS OF NEW ROADS TRAFFIC CONGESTION ETC MAYBE THERE IS SOMETHING MORE IMPORTANT AT STAKE THAN JUST WHO CAN SURVIVE IN TODAY'S COMPETITIVE ENVIRONMENT MANY COMMUNITIES' EFFORTS TO BECOME INVOLVED IN RESTORING OR MAINTAINING THEIR HISTORIC COMMERCIAL AREAS ARE MOTIVATED MORE BY A SENSE OF PLACE THAT BECOMES THREATENED WHEN OUTSIDE INTERESTS ROLL INTO TOWN TO SEE HOW MANY DOLLARS THEY CAN REMOVE FROM THE LOCAL ECONOMY COMMUNITIES HAVE A RIGHT TO PROTECT WHAT THEY PERCEIVE AS THEIR INTERESTS JUST AS MASS MERCHANDISERS HAVE THE RIGHT TO PARTICIPATE IN THE FREE ENTERPRISE SYSTEM OUR EXPERIENCE IN THE NATIONAL TRUST FOR HISTORIC PRESERVATION HAS SHOWN THAT EVERY DOLLAR A COMMUNITY SPENDS ON A LOCAL MAIN STREET PROGRAM LEVERAGES 22 IN NEW INVESTMENT DOWNTOWN ONE OF THE BEST TRACK RECORDS IN ECONOMIC DEVELOPMENT TODAY IN 13 YEARS OUR PROGRAMS IN MORE THAN 850 TOWNS IN 34 STATES HAVE GENERATED A NET GAIN OF MORE THAN 50000 NEW JOBS AND 21000 NEW BUSINESSES NOT BAD FOR A PROGRAM THAT ALSO BUILDS COMMUNITY PRIDE AND DOES NO HARM TO THE ENVIRONMENT FAR FROM FOSTERING A FORMULA THAT TURNS DOWNTOWNS INTO L9THCENTURY ARCHITECTURAL MUSEUMS WE ASSIST COMMUNITIES IN DEVELOPING A VISION OF THEIR OWN FUTURE AND TAKING STEPS TO REALIZE IT THIS IS NOT A QUICKFIX HISTORICALLY CORRECT PAINTCOLOR JOB BUT A COMPREHENSIVE COMMONSENSE APPROACH TO REVITALIZATION IN THE CONTEXT OF HISTORIC PRESERVATION THE MAIN STREET PROGRAM ENCOURAGES PROPERTY OWNERS MERCHANTS ELECTED OFFICIALS AND JUST PLAIN FOLKS TO DO EXACTLY WHAT JOHN GANN SUGGESTS TO STUDY THE SUCCESS OF SHOPPING CENTERS AND NATIONAL DISCOUNT CHAINS AND THEN ADAPT THOSE LESSONS FOR DOWNTOWN THE WISDOM OF THIS APPROACH IS EVIDENT IN THE HUNDREDS OF DOWNTOWN AND NEIGHBORHOOD SHOPPING AREAS THAT HAVE REVERSED DECADES OF DECLINE AND BECOME ECONOMICALLY VIBRANT ONCE AGAIN HERE IN NEVADA MO OUR WORK ETHIC IS HIGH OUR CRIME LOW I DON'T THINK WE EVEN HAVE ONE FASHIONCONSCIOUS ARCHITECTURALLY AWARE YUPPIE WITH CASH SPILLING OUT OF HIS DESIGNER POCKETS AS MR GANN SAYS IN FACT OUR MEDIAN WAGE IS EMBARRASSINGLY LOW YES WE HAVE A WALMART AND FOUR YEARS AGO WE ALSO HAD 27 VACANCIES IN OUR SMALL DOWNTOWN AREA THEN CAME MAIN STREET AS A PILOT CITY WE ADOPTED ITS FOURPOINT APPROACH TO REVITALIZING OUR DOWNTOWN L ORGANIZATION 2 PROMOTION 3 DESIGN AND 4 ECONOMIC RESTRUCTURING NOT THE QUAINT PAINTUP SCHEME SUGGESTED BY MR GANN HERE ARE SOME OF THE RESULTS OF OUR FIRST THREE YEARS PRIVATE INVESTMENT 3324500 THOSE ARE IMPRESSIVE NUMBERS FOR A TOWN THAT WAS SECOND HIGHEST IN FARM BUSTS FOR THE STATE DURING THE EARLY 1980S NO FEDERAL OR STATE CASH HAS BEEN INVOLVED ONLY THE SERVICES WE RECEIVED THROUGH THE STATE PROGRAM OUR CONSERVATIVE BUSINESS AND FINANCIAL COMMUNITY WOULD NOT HAVE INVESTED IF IT WAS JUST SMOKE AND MIRRORS THESE ARE TYPICAL NUMBERS OF THE 10 PILOT CITIES IN MISSOURI AND OF THE 31 OTHER MAIN STREET PROGRAM STATES OKLAHOMA JOINED THE MAIN STREET PROGRAM IN 1986 IN 1992 WE ADDED URBAN AND A SMALL TOWNS PROGRAMS IN THE TWODOZEN PARTICIPATING TOWNS WE SEE EACH STATE DOLLAR GENERATE 17 TO 20 OF PRIVATE MONEY NONE OF THIS REINVESTMENT OCCURRED AS A RESULT OF WALMART ATTACKS INSTEAD WE VIEW WALMART AS A MAJOR CONTRIBUTOR TO LOCAL TAX BASES BY BRINGING PEOPLE TO OUR MAIN STREET COMMUNITIES IN SOME CASES THE LOCAL WALMARTS ARE CONTRIBUTING MEMBERS TO THE PROGRAM IN 1986 WE WERE AT THE BOTTOM OF THE OIL BUST WE LOST 16 BANKS THAT YEAR THAT FIGURE CLIMBED TO 100 BY 1990 IN 1986 WE WATCHED THE PRICE FOR OIL FALL 49 THIS CREATED A 16 DECREASE IN JOBS 55100 A 29 DECREASE IN BUSINESS STARTS IN THE OIL INDUSTRY AND A 67 RISE IN BUSINESS FAILURES OUR SELFIMAGE AND CONFIDENCE PLUMMETED HOW COULD WE ENCOURAGE ANYONE TO REINVEST IN THIS SITUATION THE NATIONAL MAIN STREET PROGRAM OFFERED A BALANCED SELFHELP INCREMENTAL FOURPOINT APPROACH TO REVITALIZATION IN EIGHT YEARS WE WITNESSED AN INCREDIBLE TURNAROUND HERE IN OKLAHOMA AS OF AUG 30 OUR STATISTICS SHOW MORE THAN 42 MILLION REINVESTED IN THE MAIN STREET COMMUNITIES A NET GAIN OF 687 BUSINESSES AND A NET GAIN OF 1786 JOBS WE KNOW OF NO OTHER PROGRAM WITH SUCH SUCCESSES 9309290074 930929 MEDICINE SCARCITY OF MINORITY DOCTORS VEXES CLINTON BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL SANDRAL HULLETT IS EXACTLY THE KIND OF DOCTOR PRESIDENT CLINTON WOULD LIKE TO HAVE MORE OF A BLACK PHYSICIAN CARING FOR POOR PREDOMINATELY BLACK RESIDENTS IN RURAL ALABAMA SHE MOVED TO EUTAW ALA BECAUSE AFTER THE GOVERNMENT PICKED UP A CHUNK OF HER MEDICALSCHOOL BILLS SHE WAS OBLIGATED TO SPEND TWO YEARS IN AN AREA WITH FEW DOCTORS BUT UNLIKE JOEL FLEISCHMAN TELEVISION'S WHINY NORTHERN EXPOSURE DOCTOR WHO ENDED UP IN ALASKA THROUGH A SIMILAR ARRANGEMENT I FOUND I REALLY LOVED IT SAYS DR HULLETT AN ALABAMA NATIVE WHO HAS STAYED IN EUTAW FOR THE PAST 15 YEARS ONE LARGELY OVERLOOKED GOAL IN THE HEALTHCARE PROPOSAL THAT MR CLINTON ANNOUNCED LAST WEEK IS TO ENCOURAGE MORE MINORITIES TO BECOME PHYSICIANS DENTISTS AND OTHER HEALTHCARE PROFESSIONALS AS PART OF HIS PLAN THE PRESIDENT WANTS TO INCREASE SHARPLY THE SIZE OF THE NATIONAL HEALTH SERVICE CORPS WHICH GAVE DR HULLETT HER TRAINING THOUGH DETAILS ARE STILL VAGUE HE ALSO PROPOSES TO INCREASE MEDICAL SCHOLARSHIPS AND TRAINING FOR MINORITIES CURRENTLY ONLY ABOUT 36 OF THE NATION'S DOCTORS AND DENTISTS ARE BLACK EVEN THOUGH BLACKS COMPRISE ALMOST 12 OF THE POPULATION A MAJOR REASON IS THE HIGH COST OF MEDICAL SCHOOL FULLY 92 OF MINORITY STUDENTS HAVE TO TAKE ON DEBT AVERAGING ALMOST 60000 COMPARED WITH ABOUT 79 FOR NONMINORITY STUDENTS THE AMERICAN ASSOCIATION OF MEDICAL COLLEGES SAYS MINORITIES OFTEN GET LESS FINANCIAL SUPPORT FROM CASHSTRAPPED FAMILIES OTHER BARRIERS TO MEDICAL SCHOOL RANGE FROM ABYSMAL CENTERCITY PUBLIC SCHOOLS TO A GENERAL MISTRUST AMONG SOME STUDENTS THAT HARD WORK WILL PAY OFF EDUCATORS AND DOCTORS SAY INCREASING THE RANKS OF MINORITIES IN MEDICINE IS CRUCIAL TO IMPROVING CARE FOR THE POOR ADMINISTRATION OFFICIALS AND OUTSIDE EXPERTS AGREE THE RECORD SHOWS THAT MINORITY PHYSICIANS ARE ALMOST TWICE AS LIKELY TO PRACTICE IN UNDERSERVED RURAL AND URBAN AREAS AND THEY ARE MORE LIKELY TO GO INTO PRIMARY CARE THAN OTHER DOCTORS SAYS DAVID SATCHER PRESIDENT OF MEHARRY MEDICAL COLLEGE A TRADITIONALLY BLACK SCHOOL IN NASHVILLE TENN AND MINORITY PROFESSIONALS CAN SERVE AS VALUABLE ROLE MODELS AND PROVIDE COMMUNITY LEADERSHIP ON A RANGE OF ISSUES PEOPLE FEEL MORE COMFORTABLE WHEN THEIR PROVIDER IS SENSITIVE TO THEIR CULTURE SPEAKS THEIR LANGUAGE AND COMES FROM THEIR COMMUNITY ADDS RISA LAVIZZOMOUREY DEPUTY ADMINISTRATOR OF THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH WHO WORKED ON THE HEALTHREFORM PROPOSAL THE CLINTON ADMINISTRATION IN THE DRAFT OF ITS HEALTHCARE PLAN HAS SET AS A GOAL THE DOUBLING TO 3000 THE NUMBER OF UNDERREPRESENTED MINORITIES SUCH AS BLACKS AND MEXICANAMERICANS ENROLLED IN THE FIRST YEAR OF MEDICAL SCHOOL BY THE YEAR 2000 OTHER ORGANIZATIONS SUCH AS THE AMERICAN ASSOCIATION OF MEDICAL COLLEGES HAVE BEEN PURSUING THE GOAL ON THEIR OWN BUT THIS MARKS THE FIRST TIME THE WHITE HOUSE HAS EMBRACED IT IT IS UNCLEAR HOWEVER EXACTLY HOW THE ADMINISTRATION PLANS TO ACCOMPLISH ITS GOAL OFFICIALS SAY DETAILS PROBABLY WON'T BE SPELLED OUT UNTIL LATE OCTOBER WHEN THE HEALTHCARE LEGISLATIVE PROPOSAL GOES TO CONGRESS AND SOME ACTIONS PROBABLY WON'T BE IN THE PROPOSAL AT ALL BUT WILL HAPPEN AS A RESULT OF A RESHUFFLING OF PRIORITIES OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE UNCERTAINTY IS GENERATING CONCERN AMONG MINORITY HEALTHCARE PROFESSIONALS IT'S EASY TO SAY WE HAVE A PROGRAM BUT YOU HAVE TO HAVE A LONGTERM COMMITMENT SAYS KENNETH CHANCE FEDERAL RELATIONS ADVISER AT THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY OTHERS WONDER WHETHER MAJOR PROGRESS CAN BE MADE WITHOUT A COMPREHENSIVE PLAN TO HELP URBAN YOUTH BY OVERHAULING PUBLIC EDUCATION REDUCING CRIME AND CREATING MENTORING PROGRAMS ADMINISTRATION OFFICIALS INSIST THEIR STRATEGIES CAN MAKE A DIFFERENCE FOR EXAMPLE THEY SAY MR CLINTON IS COMMITTED TO EXPANDING SCHOLARSHIP AND LOANFORGIVENESS PROGRAMS THAT BENEFIT MINORITIES WE WANT TO MAKE SURE THAT FUNDS ARE AVAILABLE IN SUFFICIENT QUANTITIES THAT QUALIFIED STUDENTS INTERESTED IN HEALTH PROFESSIONS AREN'T THWARTED BY FINANCIAL CONSTRAINTS SAYS DR LAVIZZOMOUREY THE HEALTHCARE DRAFT ALSO CALLS FOR THE ENCOURAGEMENT OF MORE MINORITY REPRESENTATION ON MEDICALSCHOOL FACULTIES AND IN RESEARCH ALSO BEING WATCHED CAREFULLY IS THE ADMINISTRATION'S POSITION ON COMMUNITY HEALTH CENTERS THIS IS A NETWORK OF 600 FEDERALLY FUNDED GROUPS THAT OPERATE 1400 CLINIC SITES PROVIDING HEALTH CARE TO THE URBAN AND RURAL POOR IN THE PAST BOTH THE PRESIDENT AND HILLARY RODHAM CLINTON HAVE SPOKEN POSITIVELY ABOUT THE CENTERS BUT IT ISN'T CLEAR WHETHER THE ADMINISTRATION'S PLAN WOULD VIDE THEM WITH MORE MONEY THREE YEARS AGO THE SEQUOIA COMMUNITY HEALTH FOUNDATION WHICH PROVIDES CARE TO MIGRANT FARM WORKERS IN FRESNO CALIF BECAME THE FIRST CENTER IN THE COUNTRY TO OFFER A FAMILYPRACTICE RESIDENCY PROGRAM IN CONNECTION WITH THE LOCAL HOSPITAL RESIDENTS DO THEIR INPATIENT WORK AT THE HOSPITAL AND THEIR OUTPATIENT WORK AT SEQUOIA FOUNDERS SAY THE WORK EXPERIENCES ARE AT LEAST AS VALUABLE AS THOSE PROVIDED BY THE ELITE MEDICAL CENTERS OUR PATIENTS COME IN WITH EVERYTHING DIABETES HYPERTENSION WORK INJURIES CHRONIC LUNG DISEASE SAYS JAIME CRUZ THE CENTER'S MEDICAL DIRECTOR THE RESULT IS THAT AT THE END OF RESIDENCY TRAINING THE PHYSICIANS HAVE INTERESTS AND MOTIVATION TO RETURN TO A COMMUNITY LIKE THIS SAYS DR CRUZ OF ITS FIRST CROP OF THREE PHYSICIANS ONE HAS GONE TO WORK AT SEQUOIA AND TWO ARE AT SIMILAR CENTERS OTHER ORGANIZATIONS ALSO ARE WORKING TO TRY TO TRAIN AND RECRUIT MORE MINORITY PROFESSIONALS TWO YEARS AGO THE AMERICAN ASSOCIATION OF MEDICAL COLLEGES LAUNCHED A PROGRAM TO ENCOURAGE MEDICAL SCHOOLS TO FORM PARTNERSHIPS WITH LOCAL HIGH SCHOOLS TO PROVIDE ENRICHED SCIENCE CLASSES AND MAGNET SCHOOLS FOR TALENTED STUDENTS THIS PIPELINE EFFORT SAYS HERBERT NICKENS AN AAMC VICE PRESIDENT IS TO PRODUCE MINORITY HIGHSCHOOL GRADUATES MORE LIKELY TO SUCCEED IN COLLEGE AND MEDICAL SCHOOL AT THE CHARLES E DREW MEDICAL CENTER IN SOUTHCENTRAL LOS ANGELES SIXTO13YEAROLDS CAN ATTEND THE SATURDAY SCIENCE ACADEMY DRESSED IN WHITES AND ADDRESSED AS DOCTOR AND THERE IS A MAGNET SCHOOL FOR OLDER TEENS THAT IS RUN JOINTLY WITH THE CITY'S PUBLIC SCHOOLS DREW'S PRESIDENT REED TUCKSON SAYS HE HOPES THE FEDERAL GOVERNMENT WILL PROVIDE GRANTS FOR SUCH ACTIVITIES THE CLINTON DRAFT PLAN ONLY MENTIONS IN PASSING EXPANDING THE NATIONAL HEALTH SERVICE CORPS BUT ADMINISTRATION OFFICIALS AND OUTSIDE OBSERVERS EXPECT THE WHITE HOUSE TO PUSH FOR INCREASING THE NUMBER OF PARTICIPANTS IN THE FIELD TO 5000 OR 10000 FROM THE CURRENT 1500 OVER THE NEXT FIVE YEARS THE CORPS PROVIDES BOTH SCHOLARSHIPS AND LOAN FORGIVENESS PROGRAMS FOR THOSE INTERESTED IN PRIMARY CARE IN EXCHANGE FOR THEIR SERVING IN ONE OF 1800 COUNTIES SUFFERING FROM A SHORTAGE OF HEALTH PROFESSIONALS THOUGH NOT SPECIFICALLY AIMED AT MINORITIES THE PROGRAM NEVERTHELESS OFFERS OPPORTUNITIES FOR MINORITY STUDENTS WITH LIMITED FINANCIAL RESOURCES ADMINISTRATION OFFICIALS SAY ALABAMA'S DR HULLETT WHO GRADUATED FROM THE MEDICAL COLLEGE OF PENNSYLVANIA IN PHILADELPHIA IN THE MID1970S SAYS SHE WOULDN'T BE A PHYSICIAN IF IT WEREN'T FOR THE PROGRAM IT PAID FOR THE LAST TWO YEARS OF MEDICAL SCHOOL PLUS LIVING EXPENSES THERE'S NO OTHER WAY I COULD HAVE DONE IT SHE SAYS MY FATHER WAS A BARBER AND MY MOTHER WAS A COOK AND I HAD BORROWED EVERYTHING I COULD FOR THE FIRST TWO YEARS 9309290073 930929 TECHNOLOGY & MEDICINE WARNERLAMBERT SAYS SOME HMOS BALK AT RECOMMENDING NEW DRUG COGNEX BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MORRIS PLAINS NJ WARNERLAMBERT CO SAID IT HAD BEGUN SHIPPING SUPPLIES OF ITS NEW ALZHEIMER'S DRUG COGNEX BUT ACKNOWLEDGED THAT SOME BIG HEALTH MAINTENANCE ORGANIZATIONS WERE BALKING AT INCLUDING THE DRUG ON THEIR FORMULARIES THE LIST OF DRUGS THEY RECOMMEND THE COMPANY ALSO REITERATED THAT ITS THIRDQUARTER EARNINGS WILL FALL BELOW EARNINGS OF A YEAR EARLIER CITING THE EFFECTS OF A RECENT CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION WARNERLAMBERT SHARES FELL 125 TO 6650 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A WARNERLAMBERT SPOKESMAN BLAMED THE DECLINE ON NEWS THAT LEDERLE LABORATORIES A UNIT OF AMERICAN CYANAMID CO HAD RECEIVED FDA APPROVAL TO MARKET GEMFIBROZIL TABLETS THE GENERIC VERSION OF WARNERLAMBERT'S CHOLESTEROLMODIFYING MEDICATION LOPIDR WARNERLAMBERT'S COGNEX WAS REJECTED LAST MONTH FOR INCLUSION IN THE FORMULARY FOR KAISER PERMANENTE MEDICAL CARE PROGRAM'S LARGEST REGION NORTHERN CALIFORNIA ACCORDING TO DALE KRAMER THE HMO'S DIRECTOR OF MATERIEL SERVICES FOR THE REGION COGNEX FAILED TO MEET THE ORGANIZATION'S CRITERIA FOR EFFICACY TOXICITY AND COST SAID WILLIAM ELLIOTT CHAIRMAN OF THE HMO'S FORMULARY COMMITTEE FOR THE REGION THE ORGANIZATION IS ALSO PREPARING A BROCHURE FOR PATIENTS EXPLAINING ITS REASONS FOR REJECTING COGNEX HE SAID OF PARTICULAR CONCERN WAS THE DRUG'S SIDE EFFECTS KAISER OFFICIALS SAID COGNEX CAN PRODUCE AN INCREASE IN LIVER ENZYMES SUGGESTING POTENTIAL LIVER DAMAGE IN ABOUT ONETHIRD OF PATIENTS DOCTORS ARE BEING TOLD TO MONITOR PATIENTS WITH BLOOD TESTS EVERY WEEK FOR THE FIRST 18 WEEKS OF TREATMENT ANOTHER HMO GROUP HEALTH COOPERATIVE OF PUGET SOUND IN SEATTLE PLANS TO EVALUATE COGNEX IN NOVEMBER BUT ITS INITIAL IMPRESSIONS OF THE DRUG AREN'T FAVORABLE SAID PETER PENNA DIRECTOR OF PHARMACY IF THE DRUG IS APPROVED FOR USE BY THE ORGANIZATION HE SAID IT WILL PROBABLY BE LIMITED TO A CAREFULLY SELECTED GROUP OF PATIENTS A REPORT OF THE RELUCTANCE OF THE TWO HMOS FIRST APPEARED IN THE TRADE PUBLICATION FDC REPORTS A WARNERLAMBERT SPOKESMAN SAID THE COMPANY DOESN'T VIEW THE POSITIONS OF THE TWO GROUPS AS REPRESENTATIVE OF THE MANAGED CARE COMMUNITY OVERALL HE ADDED THAT COGNEX WOULD BE COVERED BY VIRTUALLY ALL STATE MEDICAID PROGRAMS WARNERLAMBERT SAID IT EXPECTS A DECLINE IN EARNINGS FOR THE THIRD QUARTER BECAUSE OF COSTS AND LOST SALES RELATED TO ITS AGREEMENT LAST MONTH TO SETTLE FDA CHARGES OF RECORDKEEPING AND OTHER VIOLATIONS AT ITS MANUFACTURING PLANTS THE COMPANY AS PART OF ITS CONSENT DECREE AGREED TO STOP MAKING CERTAIN DRUGS UNTIL IT CAN DEMONSTRATE IT HAS IMPROVED ITS MANUFACTURING PRACTICES ALTHOUGH THE COMPANY HAS BEEN WARNING INVESTORS THAT THE DECREE WOULD HURT EARNINGS THIS YEAR THE IMPACT IS APPARENTLY HARDER THAN EXPECTED WARNERLAMBERT SAID THIRDQUARTER EARNINGS WILL BE BELOW THE 122 A SHARE EARNED A YEAR EARLIER AND FULLYEAR EARNINGS ARE EXPECTED TO APPROXIMATE LAST YEAR'S 478 A SHARE THAT IS BELOW WALL STREET'S EXPECTATIONS OF 125 A SHARE FOR THE QUARTER AND 502 FOR THE YEAR ACCORDING TO ZACKS INVESTMENT RESEARCH INC SEPARATELY LEDERLE LABORATORIES ANNOUNCED LATE MONDAY THAT ITS GENERIC VERSION OF WARNERLAMBERT'S HEART DRUG LOPID WOULD BE AVAILABLE FRIDAY THE DRUG WILL BE THE FIRST MAJOR COMPETITION TO LOPID WHICH ALONG WITH WARNER'S OWN GENERIC VERSION GENERATED WORLDWIDE SALES OF 556 MILLION IN 1992 PHILLIP E NALBONE CONTRIBUTED TO THIS ARTICLE