EUROPEAN COMMUNITY GOVERNMENTS HAILED A COMPROMISE THAT PREVENTED AN INTERNAL RIFT OVER FARM TRADE FROM SCUTTLING WORLD TRADE TALKS BUT WITHOUT A BIG SHIFT BY THE US THE PEACE COULD BE SHORTLIVED THE EC DEAL CALLS FOR EC FOREIGN TRADE COMMISSIONER SIR LEON BRITTAN TO HOLD FURTHER TALKS WITH THE US ON LAST YEAR'S BLAIR HOUSE AGREEMENT TO CUT FARM SUBSIDIES US OFFICIALS HOWEVER FLATLY RULED OUT REOPENING THE TALKS THE EC MINISTERS GAVE SIR LEON A LIST OF ISSUES TO RAISE WITH THE US BUT THEY REFRAINED FROM CALLING FOR A FORMAL RENEGOTIATION THEIR DECISION WAS AIMED AT PLACATING FRANCE WHICH HAS THREATENED TO VETO BLAIR HOUSE WITHOUT ALIENATING WASHINGTON SIR LEON'S SPOKESMAN LATER CONCEDED THAT LIFE BECOMES VERY DIFFICULT IF THE EC IS UNABLE TO EXTRACT SIGNIFICANT CONCESSIONS FROM THE US THE EC HOPES FRENCH OBJECTIONS CAN BE SET ASIDE FOR NOW SO THAT NEGOTIATORS CAN RESOLVE OTHER ISSUES BY THE DEC 15 DEADLINE FOR A WORLD TRADE PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE FRANCE SAID IT COULD STILL REJECT A REVISED AGREEMENT THAT DOESN'T MEET ITS DEMANDS PETER LYNCH RESIGNED AS EDITOR OF HONG KONG'S SUNDAY SOUTH CHINA MORNING POST SHORTLY AFTER THE PAPER PUBLISHED AN APOLOGY TO BEIJING FOR AN ARTICLE ALLEGING THAT CHINESE BANK OFFICIALS EMBEZZLED 28 BILLION IN STATE FUNDS AN INTERNAL MEMO ANNOUNCING MR LYNCH'S RESIGNATION GAVE NO REASON FOR HIS DEPARTURE HE IS EXPECTED TO TAKE UP AN EDITORIAL POSITION IN AUSTRALIA MR LYNCH'S MOVE FOLLOWS A DECISION BY NEWS CORP TO SELL THE MORNING POST NEWSPAPERS TO ROBERT KUOK A MALAYSIAN BUSINESSMAN WITH CLOSE TIES TO BEIJING FOOD PRICES IN INDIA SURGED AND INDUSTRIAL PRODUCTION SUFFERED AS A STRIKE BY 18 MILLION INDIAN TRUCK DRIVERS PROTESTING HIGHER ROAD TAXES STRETCHED TO A SEVENTH DAY BOMBAY TRUCKERS JOINED THE ACTION YESTERDAY SHUTTING DOWN CARGO MOVEMENT AT INDIA'S BIGGEST PORT IN NEW DELHI PRICES OF POTATOES AND ONIONS DOUBLED AND SIMILAR INCREASES WERE REPORTED NATIONWIDE THE ANNUAL TAX FOR COMMERCIAL TRUCKS CHARGED BY 10 OF INDIA'S 25 STATES WAS RAISED TO 161 FROM 48 AFTER UNIONS FORCED STATES TO DROP TOLLS AT STATE BORDER CROSSINGS THE STRIKE IS COSTING TRUCK OWNERS AN ESTIMATED 29 MILLION A DAY LEADERS OF GERMANY'S RULING COALITION HAVE BACKED A PLAN TO CUT EMPLOYEE PAY BY 20 ON 10 PAID FEDERAL HOLIDAYS TO HELP BUSINESSES FINANCE PROPOSED NURSINGCARE INSURANCE THE PROPOSAL FOLLOWS THE GOVERNMENT'S ABANDONMENT OF A PREVIOUS PLAN UNDER WHICH IT WOULD HAVE REDUCED EMPLOYERS' OBLIGATION TO PROVIDE PAID SICK DAYS THAT PLAN FAILED AMID POLITICAL UNION AND BUSINESS OPPOSITION THE NETHERLANDS UNVEILED A 1994 DRAFT BUDGET THAT FORGOES PLANNED DEFICIT CUTS IN FAVOR OF MEASURES AIMED AT STEMMING UNEMPLOYMENT THE MEASURES INCLUDE JOB TRAINING AND WORKEXPERIENCE PROJECTS APPRENTICESHIP PLACEMENT PROGRAMS JOB POOLS AND AN EXPANSION OF A YOUTH EMPLOYMENT PROGRAM THE BUDGET CALLS FOR 1098 BILLION OF EXPENDITURES AND 984 BILLION OF REVENUE IT INCLUDES 276 BILLION OF NEW OUTLAYS TO UPGRADE THE COUNTRY'S INFRASTRUCTURE AS WELL AS HIGHER FUEL TAXES THOUSANDS OF BANGLADESHI STUDENTS DEMONSTRATED IN DHAKA THE CAPITAL TO DENOUNCE A SPATE OF CAMPUS VIOLENCE BETWEEN ISLAMIC FUNDAMENTALISTS AND THEIR POLITICAL RIVALS THAT HAS KILLED THREE STUDENTS AND INJURED MORE THAN 150 IN THREE DAYS OPPOSITION MEMBERS IN PARLIAMENT HAVE DECRIED SATURDAY'S ATTACK BY MEMBERS OF THE FUNDAMENTALIST ISLAMI CHHATRA SHIBIR ON RIVALS AT RAJSHAHI UNIVERSITY IN THE NORTH IN WHICH ONE PERSON WAS KILLED THE RIOTS SPREAD TO A SOUTHERN DISTRICT WHERE TWO SHIBIR ACTIVISTS WERE FATALLY SHOT THE OPPOSITION CALLED FOR THE RESIGNATION OF HOME MINISTER ABDUL MATIN CHOWDHURY FOR FAILING TO KEEP ORDER IT WILL TAKE AT LEAST 35 YEARS FOR LIVING STANDARDS IN EASTERN EUROPE AND THE FORMER SOVIET UNION TO REACH EVEN HALF THOSE OF DEVELOPED COUNTRIES ACCORDING TO A REPORT BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT THE AID BANK'S ANNUAL ECONOMIC OUTLOOK RELEASED YESTERDAY CITES A SLEW OF OBSTACLES HINDERING ECONOMIC GROWTH AND THE GROWTH OF CAPITALISM BANKRUPTCY LAWS THAT AREN'T IMPLEMENTED COMPLEX RESTITUTION LAWS THAT MAKE PROPERTY RIGHTS MURKY SLOW PRIVATIZATION OF STATE INDUSTRIES THE SPREAD OF CORRUPTION AND AN INABILITY TO TRADE WITH THE WEST BECAUSE OF ANTIDUMPING LAWS AND LIMITED FINANCING SOME OF THESE CONDITIONS ARE CAUSED BY THE CHAOTIC TRANSITION FROM COMMUNIST TO DEMOCRATIC POLITICAL SYSTEMS THE REPORT SAID THE EBRD WAS FOUNDED TWO YEARS AGO BY WESTERN NATIONS TO AID THE EAST THE EBRD DECLINED TO FORECAST 1993 ECONOMIC GROWTH BUT ITS REPORT INCLUDED OTHER GROUPS' PREDICTIONS THEY RANGE FROM A 16 DECLINE IN KAZAKHSTAN TO 5 GROWTH IN POLAND FORECAST BY PLANECON A TRANSIT WORKERS' STRIKE THAT HAS PARALYZED NICARAGUA'S CAPITAL MANAGUA SPREAD TO NEARLY ALL OTHER MAJOR CITIES ON ITS SECOND DAY PERCAPITA INVESTMENT IN EASTERN GERMANY EXCEEDS INVESTMENT IN THE WEST CHANCELLOR HELMUT KOHL SAID THIS YEAR ABOUT 223 BILLION WILL BE INVESTED IN THE EAST TWICE THE 1991 LEVEL 9309220008 930922 MARKETING & MEDIA ADVERTISING PHILIPS INFOMERCIAL DOES ITS THING IN POPULAR TVWATCHING HOURS BY KEVIN GOLDMAN WHEN VIEWERS OF KDKA THE CBS AFFILIATE IN PITTSBURGH FINISH WATCHING THE PIRATES VS PHILADELPHIA PHILLIES DURING PRIME TIME NEXT TUESDAY THEY MAY BE JOLTED BY WHAT FOLLOWS THE BASEBALL GAME INSTEAD OF A SITUATION COMEDY OR LOCALLY PRODUCED PUBLIC AFFAIRS PROGRAM THE KDKA AUDIENCE WILL SEE A 30MINUTE INFOMERCIAL FROM PHILIPS ELECTRONICS NV'S PHILIPS CONSUMER ELECTRONICS FOR ITS BIGTICKET COMPACT DISC INTERACTIVE OR CDI THESE ARE MULTIMEDIA PLAYERS THAT ATTACH TO TELEVISION SETS AND STEREO SYSTEMS AND CAN DISPLAY MASSIVE AMOUNTS OF VIDEO SOUND AND TEXT FROM FIVEINCH COMPACT DISKS WHAT'S NEW ABOUT THIS INFOMERCIAL IS ITS TIME SLOT THESE HYBRIDS OF ENTERTAINMENT AND ADVERTISING A FAMILIAR PROGRAMMING FORMAT USUALLY ARE RELEGATED TO LATE NIGHTS OR WEEKENDS WHEN TV VIEWING LEVELS ARE LOW INFOMERCIALS ARE ALSO A STAPLE ON INDEPENDENT STATIONS WHICH USUALLY ATTRACT SMALLER AUDIENCES THAN BROADCAST NETWORK AFFILIATES BIG MARQUEE COMPANIES INCLUDING REVLON AVON AND NORELCO ALSO HAVE PRODUCED INFOMERCIALS THUS FAR HOWEVER AIRING THEM IN PRIME TIME OR DURING THE HOUR THAT PRECEDES PRIME TIME KNOWN AS PRIME ACCESS HAS ELUDED ADVERTISERS UNTIL NOW THE PHILIPS INFOMERCIAL TITLED THE GREAT WALL IS GAINING UNPRECEDENTED ACCEPTANCE BY MAJORMARKET TELEVISION STATIONS WPLG A CAPITAL CITIES/ABC AFFILIATE AND THE NO 1 STATION IN MIAMI IS SCHEDULED TO AIR THE PHILIPS PROGRAM AT 730 PM IN PLACE OF THE TOPRATED SYNDICATED SHOW WHEEL OF FORTUNE KPIX THE CBS AFFILIATE IN SAN FRANCISCO IS SCHEDULED TO BROADCAST THE PROGRAM NEXT MONTH AT 830 PM AND KXTV THE CBS AFFILIATE IN SACRAMENTO CALIF ALREADY BROADCAST THE INFOMERCIAL SATURDAY AT 630 PM PHILIPS SAID YESTERDAY THAT IT SIGNED DEALS IN LOS ANGELES WITH KABC THE CAPITAL CITIES/ABCOWNED STATION AND KNBC OWNED BY GENERAL ELECTRIC'S NBC UNIT TO AIR THE SPOT EXACT TIME PERIODS HAVE YET TO BE DETERMINED THE INFOMERCIAL REPLACES AN AGGRESSIVE PRINT CAMPAIGN FROM SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES AD AGENCY THAT TRUMPETED THE CDI AS THE IMAGINATION MACHINE RETAILERS COMPLAINED THAT THOSE ADS DID LITTLE TO DEMYSTIFY THE PRODUCT EVEN FOR SOPHISTICATED TECHNOLOGICALLY FRIENDLY CONSUMERS INDEED IN RECENT MONTHS CONSUMER INTEREST IN CDI PLAYERS HAS BEEN LACKLUSTER WITH SOME RETAILERS SAYING THEY PLANNED TO RETURN THEIR INVENTORY TO PHILIPS OR SIMPLY NOT REORDER A MAJOR PROBLEM HAS BEEN PRICE WHICH PHILIPS RECENTLY DROPPED TO 499 FROM 599 PHILIPS ALSO IS FIELDING NUMEROUS QUESTIONS FROM POTENTIAL CONSUMERS WHO ARE BEING FLOODED WITH NEWS STORIES ABOUT INTERACTIVITY AND NEW MEDIA TECHNOLOGY AT THIS POINT THERE IS NO CLEAR INDICATION OF HOW THE CDI WILL FIT INTO THE NEW INTERACTIVE WORLD FOR ITS PART PHILIPS INSISTS THAT IT COULDN'T BE MORE PLEASED WITH SALES OF ITS CDI ACCORDING TO THE KNOXVILLE TENN COMPANY IT SOLD 100000 UNITS AS OF DEC 31 THE MOST RECENT DATA PHILIPS SAYS IT HAS AVAILABLE PHILIPS ADDS THAT A MAJORITY OF ITS SALES ARE IN THE FOURTH QUARTER WHICH IS WHY IT IS LAUNCHING AN INFOMERCIAL BLITZ NOW SPENDING MORE THAN 20 MILLION TO PRODUCE THE GREAT WALL AND TO PLACE IT THE INFOMERCIAL STARS AN APTLY NAMED CHARACTER PHIL WHO ENTERS A FUTURISTIC BUILDING NOT UNLIKE THOSE FOUND IN THE ECCENTRIC MOVIE BRAZIL HE TELLS THE RECEPTIONIST I'M HERE TO FIND THE MEANING OF LIFE AFTER BEING DIRECTED TO A RED ELEVATOR THE EARNEST AND SOMEWHAT DENSE PHIL APPEARS AT THE GREAT WALL HE EXPECTS THE ANSWER TO AN ETERNAL QUESTION BUT HAS TO SETTLE FOR A COMMERCIAL WITHIN A COMMERCIAL HE IS TOLD HOW TO USE THE CDI NEITHER PHILIPS NOR SEVERAL STATIONS QUERIED WOULD DISCLOSE HOW MUCH PHILIPS IS PAYING FOR THE DESIRABLE TIME PERIODS BUT ONE PROGRAM MANAGER MATT CHAN OF KXTV SAYS IT IS BIG BIG BUCKS MR CHAN SAYS THAT MONEY ISN'T THE ONLY REASON THE STATION AIRED THE INFORMERCIAL OTHER COMPANIES WOULD PAY SAYS MR CHAN BUT THIS IS A REPUTABLE COMPANY PRODUCED BY TYEE PRODUCTIONS IN PORTLAND ORE THE SPOT WILL BE SEEN ON CHOICE TIME PERIODS BECAUSE OF ITS SLICK EXECUTION KDKA IS GAMBLING THAT IT WILL BE INTRIGUING ENOUGH TO HOLD VIEWERS AFTER THE BASEBALL GAME AND UNTIL THE STATION'S LOCAL NEWS AT 11 PM I LOOK FOR THINGS THAT PUNCH OUT AT VIEWERS' INTEREST SAYS JAYNE ADAIR KDKA'S DIRECTOR OF PROGRAM STRATEGY WHO ADMITS THERE WAS A GREAT DEAL OF INTERNAL DISCUSSION ABOUT WHETHER TO AIR THE INFOMERCIAL IN THE COVETED TIME PERIOD MS ADAIR SAYS THAT FINDING PROGRAMMING TO FILL THE VOID BETWEEN THE END OF A BASEBALL GAME AND LOCAL NEWS IS DIFFICULT THE USUAL CHOICE IS A SITUATION COMEDY BUT SHE THINKS INFOMERCIALS ARE A LEGITIMATE FORM OF PROGRAMMING SHE ADDS THEY ARE PRODUCED WITH THE IDEA OF KEEPING PEOPLE WATCHING AND THAT IS AN IMPORTANT FACTOR TO ANY SHOW THAT PRECEDES OUR LOCAL NEWS MIAMI'S WPLG ALSO WAS IMPRESSED WITH THE SPOT'S BROADCAST QUALITY THIS ONE IN MY VIEW STANDS HEADS AND SHOULDERS ABOVE ANY INFOMERCIAL THAT IS COMING DOWN THE PIKE SAYS JOHN G GARWOOD WPLG'S VICE PRESIDENT AND GENERAL MANAGER WHO SCREENS ALL THE INFOMERCIALS SUBMITTED TO THE STATION THE INFOMERCIAL TRADE ORGANIZATION IS THRILLED AT PHILIPS'S BREAKTHROUGH AND PREDICTS MORE TO COME PEOPLE AREN'T LAUGHING AT US ANYMORE SAYS HELENE BLAKE EXECUTIVE DIRECTOR OF THE NATIONAL INFOMERCIAL MARKETING ASSOCIATION IN WASHINGTON THE GROUP FOUNDED THREE YEARS AGO WITH NINE MEMBER COMPANIES NOW LISTS OVER 300 ALL WE NEEDED WERE MAJOR TELEVISION STATIONS WHO HAD THE GUTS TO PUT US ON IN PRIME TIME SAYS MS BLAKE MICHAEL KEEL THE DIRECTOR OF ADVERTISING AT PHILIPS SAYS THE INFOMERCIAL GAINED ACCEPTABILITY BECAUSE IT HAS A CONTINUING ENTERTAINING STORY LINE MR KEEL SAYS THAT SINCE THE INFOMERCIAL BEGAN AIRING LAST WEEK PHILIPS HAS RECEIVED THOUSANDS OF CALLS TO TOLLFREE NUMBERS POSTED THROUGHOUT THE SPOT OUR GOAL IS TO PREEDUCATE THE CONSUMER BEFORE HE OR SHE GOES INTO THE SHOWROOM SAYS MR KEEL ADDING THAT THE DEMONSTRATION TIME FOR THE CDI IS LESS THAN FIVE MINUTES PHILIPS PRODUCED THE INFOMERCIAL EXPRESSLY TO SELL IN PRIME TIME OR PRIMEACCESS TIME PERIODS WE FELT THIS ONE IS GOOD ENOUGH SAYS MR KEEL WHO NEVERTHELESS ADMITS HE IS SURPRISED AND DELIGHTED WITH THE RESULTS MS ADAIR SAYS SHE NO LONGER CONSIDERS INFOMERCIALS SUCH A BIZARRE INTERRUPTION AND IF THEY HOLD THE VIEWER'S ATTENTION SO MUCH THE BETTER ATTORNEYS GENERAL OF 27 STATES URGED THE FEDERAL TRADE COMMISSION TO BAN RJ REYNOLDS'S CIGARETTE ADVERTISING STARRING THE ANIMATED SMOOTH CHARACTER JOE CAMEL IN A LETTER TO JANET STEIGER CHAIRMAN OF THE FTC THE ATTORNEYS GENERAL SAID THEY BELIEVE REYNOLDS'S CAMEL CAMPAIGN ENTICES CHILDREN TO SMOKE WHILE THEY ARE TOO YOUNG TO MAKE INFORMED CHOICES ABOUT SMOKING TO HEED FEDERALLY MANDATED WARNINGS OR EVEN TO PURCHASE CIGARETTES LEGALLY THE FTC AT PRESENT IS WEIGHING A SEPARATE RECOMMENDATION FROM ITS STAFF TO BAN THE CAMEL CAMPAIGN THE STATE ATTORNEYS GENERAL CONTEND THAT UNDERAGE SMOKING HAS INCREASED SINCE THE JOE CAMEL CHARACTER WAS INTRODUCED IN 1987 INCLUDING A 12 RISE AMONG JUNIOR HIGH SCHOOL STUDENTS IN 1992 THE LETTER CONTENDS THAT THE CHARACTER BOOSTED REYNOLDS'S MARKET SHARE AMONG UNDERAGE SMOKERS FROM LESS THAN 1 TO 33 OFFICIALS AT RJ REYNOLDS A UNIT OF RJR NABISCO HOLDINGS CORP COULDN'T BE REACHED THE COMPANY HAS SAID IT DOESN'T TARGET UNDERAGE SMOKERS MORE ICE BEER MILLER BREWING CO A UNIT OF PHILIP MORRIS COS SAID IT PLANS TO INTRODUCE ICEHOUSE ICE BEER TO TWO TEST MARKETS LANSING MICH AND OAKLAND CALIF YOUNG & RUBICAM'S CHICAGO OFFICE IS HANDLING POINTOFPURCHASE ADVERTISING FOR THE BRAND A MILLER SPOKESMAN SAID ANHEUSERBUSCH AND MILLER'S MOLSON USA OPERATIONS HAVE ANNOUNCED PLANS TO INTRODUCE THEIR OWN ICE BEER WHICH IS SUPPOSEDLY BREWED AND FROZEN TO IMPROVE THE TASTE ACCOUNTS WPP GROUP'S J WALTER THOMPSON'S EUROPEAN OPERATIONS WON THE ESTIMATED 20 MILLION ACCOUNT OF TNT EXPRESS WORLDWIDE AN INTERNATIONAL DELIVERY SERVICE OWNED JOINTLY BY TNT LTD OF AUSTRALIA AND GD NET BV A CONSORTIUM OF POST OFFICES IN EUROPE AND CANADA SKYTEL CORP A UNIT OF MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP TAPPED THE MARTIN AGENCY RICHMOND VA TO CREATE ADS FOR ITS WIRELESS MESSAGING SERVICE SKYTEL SAID IT WILL SPEND ABOUT 7 MILLION ON TV PRINT AND DIRECTTOCONSUMER ADS 9309220007 930922 INTERNATIONAL ARREST OF JAPAN CONSTRUCTION EXECUTIVE DEALS NEW BLOW TO INDUSTRY UNDER FIRE BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TERUZO YOSHINO IS THE CLASSIC CAPTAIN OF JAPANESE INDUSTRY ENGINEER GRADUATE OF PRESTIGIOUS TOKYO UNIVERSITY HEAD OF A LEADING TRADE ASSOCIATION AND COMMANDER OF THE NATION'S LARGEST CONSTRUCTION COMPANY SHIMIZU CORP SO PROSECUTORS WERE TACKLING BIG GAME WHEN THEY SHOWED UP AT MR YOSHINO'S FRONT GATE AT 1030 MONDAY NIGHT AND AFTER A TIFF WITH HIS GUARDS RAIDED HIS HOME AND ARRESTED THE 75YEAROLD EXECUTIVE ON SUSPICION OF BRIBERY SHIMIZU'S PRESIDENT YESTERDAY CALLED A NEWS CONFERENCE TO BRAND AS UNTHINKABLE ALLEGATIONS THAT MR YOSHINO PAID OFF A POLITICIAN IN RETURN FOR RECEIVING PUBLIC CONTRACTS BUT NUMEROUS ANALYSTS SAY THAT BRIBERY IS WIDESPREAD IN THE INDUSTRY MR YOSHINO'S ARREST IS THE LATEST BLOW TO A LONGSTANDING FOUNDATION OF JAPAN'S POSTWAR ECONOMY THE OFTEN CORRUPT TIES BETWEEN POLITICIANS AND CONTRACTORS THIS YEAR JAPAN'S MOST POWERFUL POLITICIAN WAS ARRESTED FOR EVADING TAXES ON INCOME ALLEGEDLY GATHERED ILLEGALLY FROM CONSTRUCTION COMPANIES THAT SET OFF A CHAIN OF EVENTS THAT THIS SUMMER ENDED THE FOURDECADE REIGN OF THE LIBERAL DEMOCRATIC PARTY THE MAIN BENEFICIARY OF THE CONSTRUCTION INDUSTRY'S LARGESS REFORMIST PRIME MINISTER MORIHIRO HOSOKAWA INTRODUCED IN PARLIAMENT SWEEPING LEGISLATION DESIGNED TO CURB THE FLOW OF MONEY FROM CONTRACTORS AND OTHER BUSINESSES TO POLITICIANS THE US GOVERNMENT MEANWHILE IS THREATENING TRADE SANCTIONS BY NOV 1 IF JAPAN DOESN'T DO MORE TO END THE CLOSE GOVERNMENTCONTRACTOR TIES WASHINGTON CONTENDS THOSE LINKS DENY US FIRMS FAIR ACCESS TO THE MARKET HOURS BEFORE HE WAS CARTED OFF IN A BLACK LIMOUSINE TO A JAIL CELL MR YOSHINO PUBLICLY REJECTED THE US DEMANDS IN HIS CAPACITY AS HEAD OF THE INDUSTRY'S TRADE GROUP THIS HOST OF PRESSURES ONLY COMPOUNDS THE INDUSTRY'S ECONOMIC WOES LIKE MANY JAPANESE COMPANIES CONTRACTORS THRIVED DURING THE BOOMING 1980S AND MADE TREMENDOUS INROADS ABROAD INCLUDING TO THE US THIS YEAR JAPAN'S CONTRACTORS ARE BRACING FOR THEIR THIRD CONSECUTIVE ANNUAL DROP IN ORDERS SHIMIZU'S PROFIT SANK MORE THAN 50 LAST YEAR THE CONSTRUCTION INDUSTRY HAS ENTERED AN ERA OF WINTER SAYS RYOUHEI NONAMI AN ANALYST AT A RESEARCH ARM OF SAKURA BANK LTD SHIMIZU AND OTHER LEADING JAPANESE CONSTRUCTION COMPANIES WERE FOUNDED MORE THAN 100 YEARS AGO AND GREW UP ON A HEAVY DIET OF BIG GOVERNMENT PROJECTS JAPAN'S MOST POWERFUL POSTWAR PRIME MINISTER KAKUEI TANAKA STARTED HIS CAREER AS A SUCCESSFUL CONTRACTOR AND EASED HIS ENTRY INTO POLITICS BY MAKING BIG CONTRIBUTIONS TO A LEADING CONSERVATIVE PARTY DURING THE EARLY 1970S PRIME MINISTER TANAKA BOOSTED THE CONSTRUCTION COMPANIES WITH A GARGANTUAN SCHEME TO REMODEL THE JAPANESE ARCHIPELAGO HIS OWN RURAL DISTRICT BECAME SYNONYMOUS WITH PORKBARREL EXCESS ONE 1700FOOT 43 MILLION TUNNEL IN THE REGION LEADS TO A VILLAGE OF FEWER THAN 100 PEOPLE JAPAN'S CONSTRUCTION INDUSTRY IS THE PRIME EXAMPLE OF THE NATION'S IRON TRIANGLE OF BUSINESSMEN BUREAUCRATS AND POLITICIANS CONTRACTORS HAVE BEEN THE HEAVIEST DONORS TO THE CONSERVATIVE LDP WHICH WAS IN POWER FROM 1955 UNTIL LAST MONTH LDP BOSSES IN TURN LEANED ON CONSTRUCTION MINISTRY BUREAUCRATS TO AWARD JOBS TO DONOR COMPANIES THE CONTRACTORS GAVE JOBS TO RETIRED BUREAUCRATS PRIVATESECTOR ORDERS ALSO SWELLED IN THE LATE 1980S AIDED BY THE VIBRANT ECONOMY SHIMIZU IN PARTICULAR BECAME FAR MORE AGGRESSIVE AFTER MR YOSHINO KNOWN AS AN ABLE EXECUTIVE BECAME PRESIDENT IN 1981 HE LATER WAS PROMOTED TO CHAIRMAN UNDER HIS LEADERSHIP THE COMPANY BECAME KNOWN AS HAMMERING SHIMIZU FOR MAKING BOLD MARKETING ASSAULTS AND WRESTING PRICE CUTS FROM SUBCONTRACTORS A SHIMIZUPUBLISHED BOOK BOASTED IN 1988 THAT THE JAPANESE INDUSTRY WAS AGGRESSIVELY EXPANDING ITS OPERATIONS INTO FOREIGN MARKETS THE SKY WAS THE LIMIT LITERALLY SHIMIZU IN 1987 PROUDLY ANNOUNCED IT WAS THE FIRST JAPANESE CONTRACTOR TO SET UP A SECTION SPECIALIZING IN OUTERSPACE PROJECT DEVELOPMENT BUT THE COLLAPSE OF JAPAN'S ECONOMIC BOOM HAS HIT THE CONSTRUCTION SECTOR ESPECIALLY HARD MANUFACTURERS HAVE CUT CAPITAL SPENDING DEMAND FOR NEW OFFICES HAS DRIED UP AND FALLING REAL ESTATE PRICES HAVE DISCOURAGED NEW BUILDING WHAT'S MORE THE CONTRACTORS' OVERSEAS INVESTMENTS HAVE PROVED TO BE EXPENSIVE MISTAKES SHIMIZU LAST YEAR DECLARED A 755 BILLION YEN 7212 MILLION SPECIAL LOSS FOR LIQUIDATING POORPERFORMING REAL ESTATE INVESTMENTS IN BRITAIN AND AUSTRALIA THE COMPANY IS TRYING TO DISPOSE OF 28 INVESTMENTS IN THE US RANGING FROM OFFICE BUILDINGS TO GOLF COURSES SHIMIZU'S NET PROFIT IN THE YEAR ENDED MARCH 31 PLUNGED 57 FROM A YEAR EARLIER TO 196 BILLION YEN THE SLUMP IN ITS PRIVATESECTOR BUSINESS ANALYSTS SPECULATE MAY HAVE FORCED SHIMIZU TO REDOUBLE EFFORTS TO WIN PUBLIC WORKS BIDS MR YOSHINO LAST DECEMBER ALLEGEDLY PAID FUJIO TAKEUCHI THEN GOVERNOR OF IBARAKI PREFECTURE 10 MILLION YEN FOR THROWING SOME BUSINESS SHIMIZU'S WAY MR TAKEUCHI WAS ARRESTED THIS SUMMER ON SEPARATE CHARGES OF TAKING BRIBES TWO MAYORS ALSO HAVE BEEN DETAINED FOR ALLEGEDLY TAKING DARK MONEY FROM CONTRACTORS AND EXECUTIVES FROM FOUR CONSTRUCTION COMPANIES INCLUDING THE CHAIRMAN OF THE SMALLER HAZAMA CORP HAVE BEEN DETAINED ON SUSPICION OF MAKING THE PAYMENTS MR YOSHINO IS THE BIGGEST CATCH BUT FEW EXPECT HIM TO BE THE LAST I WOULDN'T BE SURPRISED IF WE HAVE ARRESTS OF HIGHER UPS FROM OTHER COMPANIES SAYS MARK BROWN A CONSTRUCTIONINDUSTRY ANALYST FOR BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD IT WOULD BE UNFAIR FOR SHIMIZU AND HAZAMA TO BE SINGLED OUT 9309220004 930922 BUSINESS BRIEF BANK OF BOSTON TO BUY BANKWORCESTER CORP FOR 247 MILLION BOSTON CONTINUING A WAVE OF CONSOLIDATION AMONG NEW ENGLAND BANKS BANK OF BOSTON CORP SAID IT WILL ACQUIRE BANKWORCESTER CORP FOR 34 A SHARE OR ABOUT 247 MILLION IT IS BANK OF BOSTON'S THIRD MAJOR PURCHASE IN A YEAR THE COMPANY HAS BEEN SEEKING TO STRENGTHEN ITS NEW ENGLAND FRANCHISE SAID GERARD CASSIDY AN ANALYST WITH JOHN HANCOCK INSTITUTIONAL EQUITIES THE BIDDING FOR SAVINGS BANKS IN MASSACHUSETTS WILL CONTINUE AS THE REGION'S LOAN GROWTH REMAINS SLUGGISH AND LARGER BANKS EAT SMALLER ONES TO FILL THEIR COFFERS WITH EARNING ASSETS HE SAID MR CASSIDY NOTED THAT BANK OF BOSTON'S AGREEDUPON PRICE FOR BANKWORCESTER 34 A SHARE IN CASH REPRESENTS A HEALTHY PREMIUM OVER THE WORCESTER MASS BANK'S STATED BOOK VALUE OF 2088 A SHARE AT JUNE 30 BANKWORCESTER HAS ASSETS OF 14 BILLION AND DEPOSITS OF 12 BILLION BANK OF BOSTON'S ASSETS ARE 375 BILLION THE COMPANIES DID NOT SAY LATE YESTERDAY WHETHER CONSOLIDATIONS WERE PLANNED TO REDUCE THEIR COMBINED WORK FORCE BOTH BOARDS APPROVED THE BUYOUT LATE YESTERDAY SHAREHOLDERS OF BANKWORCESTER AND BANK REGULATORS MUST ALSO APPROVE THE TRANSACTION THE ACQUISITION IS EXPECTED TO CLOSE IN THE FIRST HALF OF NEXT YEAR BANK OF BOSTON SAID IT SAID THAT WITH ITS RECENT ACQUISITION OF MULTIBANK FINANCIAL CORP BANK OF BOSTON WILL HAVE A LEADING MARKET POSITION IN WORCESTER NEW ENGLAND'S SECONDLARGEST CITY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BANK OF BOSTON SHARES FELL 375 CENTS TO 24 AND BANKWORCESTER SHARES ROSE 50 CENTS TO 2850 IN NATIONAL OVERTHECOUNTER TRADING 9309220002 930922 MUTUAL FUNDS THE NEXT GREAT US EXPORT BY J CARTER BEESE JR THE US MUTUAL FUND INDUSTRY HAS EMERGED AS A DOMINANT FORCE IN DEVELOPING MANAGING AND MARKETING INVESTMENT PRODUCTS AND SERVICES TO AMERICAN INVESTORS SINCE 1980 INDUSTRY ASSETS HAVE INCREASED FROM ABOUT 135 BILLION TO MORE THAN 18 TRILLION WITH CONTINUED STRONG FOREIGN DEMAND FOR US SECURITIES AND AN EVEREXPANDING POOL OF INVESTORS IN INDUSTRIALIZED AND DEVELOPING MARKETS ABROAD MUTUAL FUNDS APPEAR POISED TO BE THE NEXT GREAT MADE IN AMERICA PRODUCT SUCCESSFULLY EXPORTED WORLDWIDE BUT THIS POTENTIAL SUCCESS FOR MUTUAL FUNDS WILL BE NOTHING MORE THAN WISHFUL THINKING UNLESS THE US MODIFIES ITS TAX LAWS WHICH NOW PROVIDE SIGNIFICANT DISINCENTIVES TO ANY FOREIGN INVESTOR SEEKING TO PURCHASE SHARES IN A US MUTUAL FUND FOR EXAMPLE AMERICA'S TAX LAWS SUBJECT FOREIGN INVESTORS IN US MUTUAL FUNDS TO WITHHOLDING TAXES THAT ARE NOT IMPOSED IF THE INVESTOR PURCHASES US SECURITIES EITHER DIRECTLY OR THROUGH A FOREIGN FUND IN ESSENCE AMERICA'S LAWS IMPOSE A PROHIBITIVE EXPORT TAX ON FOREIGN INVESTORS SIMPLY FOR CHOOSING US MUTUAL FUNDS AS THEIR PREFERRED INVESTMENT VEHICLE THE CURRENT TAX TREATMENT OF FOREIGN INVESTORS IN US FUNDS PUTS PRESSURE ON THE MUTUAL FUND INDUSTRY TO ESTABLISH FUNDS OFFSHORE TO ATTRACT THESE INVESTORS TODAY FOREIGN DEMAND FOR US INVESTMENT PRODUCTS IS BEING SATISFIED BY US COMPANIES AND THEIR FOREIGN COMPETITORS IN SUCH PLACES AS BERMUDA THE CAYMAN ISLANDS AND LUXEMBOURG SATISFYING THIS DEMAND INDIRECTLY APPEARS TO BE LIMITING THE MARKET FOR US SECURITIES UNNECESSARILY ALTHOUGH THE GROWTH OF THE MUTUAL FUND INDUSTRY IN THESE TAX HAVENS HAS BEEN IMPRESSIVE THESE OFFSHORE MUTUAL FUNDS WILL NEVER SUCCESSFULLY APPEAL TO THE AVERAGE FOREIGN INVESTOR BECAUSE THE OFFSHORE PRODUCTS LACK THE SEAL OF APPROVAL PROVIDED BY THE US REGULATORY SYSTEM BECAUSE OF THE COMMITMENT TO INVESTOR PROTECTION SHARED BY THE FUND COMPLEXES AND THEIR REGULATORS THE US MUTUAL FUND INDUSTRY HAS BEEN FREE FROM MAJOR SCANDALS AND FAILURES AND ENJOYS TREMENDOUS PUBLIC CONFIDENCE IF THE TAX LAWS WERE CHANGED TO ALLOW US MUTUAL FUNDS TO CAPITALIZE ON THIS ADVANTAGE AMERICA'S ABILITY TO ATTRACT FOREIGN CAPITAL AN IMPORTANT ELEMENT OF CONTINUED ECONOMIC GROWTH WOULD BE ENHANCED IN RECENT YEARS FOREIGN INVESTMENT IN THE US IN KEY SECTORS HAS DECLINED OR AT BEST STAGNATED TREASURY DEPARTMENT FIGURES INDICATE THAT THE ANNUALIZED RATE OF CAPITAL INFLOWS INTO THE US DURING THE FIRST QUARTER OF THIS YEAR WAS ONLY ONEEIGHTH THE RATE IN THE PEAK YEAR OF 1986 INCREASED FOREIGN INVESTMENT IN THE US THROUGH US MUTUAL FUNDS COULD BENEFIT OUR CAPITAL MARKETS WITHOUT INCREASING FOREIGN CONTROL OF AMERICAN BUSINESSES IT WOULD HAVE A JOBS EFFECT BY INCREASING THE DEMAND FOR THE FUND SERVICES PROVIDED BY US FUND MANAGERS CUSTODIANS ACCOUNTANTS TRANSFER AGENTS AND OTHERS BASED IN THE US JOBS THAT ARE NOW LOCATED OFFSHORE CONGRESS WOULD BE WISE TO ENACT LEGISLATION SUCH AS THE INVESTMENT COMPETITIVENESS ACT OF 1993 RECENTLY INTRODUCED BY REP SAM GIBBONS D FLA PASSAGE OF THIS TYPE OF LEGISLATION WOULD ESTABLISH COMPARABLE TAX TREATMENT FOR US AND FOREIGN FUNDS AND THUS FREE US FUNDS TO COMPETE ON EQUAL FOOTING WHEN COURTING FOREIGN INVESTORS IN TODAY'S COMPETITIVE GLOBAL ECONOMY COMMON SENSE SAYS THAT THE US SHOULD BE ENCOURAGING THE EXPORT OF EVERY AMERICAN GOOD OR SERVICE THAT FOREIGN CONSUMERS WANT IT'S ONE THING WHEN US BUSINESSMEN COMPLAIN THAT FOREIGN LAWS OR INDUSTRY PRACTICES IMPEDE THEIR ABILITY TO COMPETE IT'S QUITE ANOTHER WHEN US TAX LAW IS ONE OF THE CULPRITS MR BEESE IS A COMMISSIONER ON THE SECURITIES AND EXCHANGE COMMISSION 9309220001 930922 HEARD ON THE STREET TEMPLETON SHEDS HOLDING IN TEMPLETON BY ROBERT MCGOUGH AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHILE INVESTORS ARE POURING CASH INTO EMERGING STOCK MARKETS AROUND THE WORLD AT LEAST ONE BIG GUN IS TAKING A BREATHER JOHN TEMPLETON MR TEMPLETON THE DEAN OF INTERNATIONAL INVESTING HAS BAILED OUT OF TEMPLETON EMERGING MARKETS FUND A PUBLICLY TRADED INVESTMENT FUND LISTED ON THE NEW YORK STOCK EXCHANGE HE SOLD 261000 SHARES OF THE FUND FROM MIDJULY THROUGH AUG 9 SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THAT RIDS HIM OF ALL HIS HOLDINGS IN THE FUND WHICH INVESTS IN STOCKS IN DEVELOPING COUNTRIES FROM LATIN AMERICA TO THE FAR EAST WHY DID MR TEMPLETON CHAIRMAN EMERITUS OF TEMPLETON FUNDS SELL A HOT FUND RUN BY ONE OF HIS BEST PORTFOLIO MANAGERS MR TEMPLETON SAYS HE CAN GET THE SAME MANAGER AND NEARLY THE SAME PORTFOLIO IN ANOTHER TEMPLETON FUND FOR A LOT LESS MONEY I'VE SPENT 80 YEARS SEARCHING FOR BARGAINS HE SAYS AND I CAN'T THINK OF A STOCK BEING A BARGAIN AT 32 ABOVE LIQUIDATION VALUE HOW'S THAT AGAIN WHEN MR TEMPLETON SOLD AT PRICES AROUND 21 THE FUND'S STOCK PRICE WAS 32 HIGHER THAN THE AMOUNT THE FUND'S STOCK PORTFOLIO WOULD HAVE FETCHED IF SOLD OFF PIECEMEAL THAT'S AN UNUSUALLY WIDE GAP OR PREMIUM EVEN FOR A POPULAR CLOSEDEND FUND TEMPLETON EMERGING MARKETS SHARES WERE UNCHANGED YESTERDAY AT 24 A LITTLE HIGHER THAN WHERE MR TEMPLETON SOLD THE PREMIUM HAS NARROWED A BIT TO 25 STILL HARDLY BARGAIN TERRITORY IT'S A SITUATION PECULIAR TO CLOSEDEND FUNDS THEIR SHARES ARE ISSUED ONCE AND THEN TRADE ON STOCK EXCHANGES UNLIKE THE GARDENVARIETY OPENEND MUTUAL FUNDS WHOSE SHARES ARE BOUGHT AND SOLD DAILY BY FUND COMPANIES THEMSELVES TRADING OF CLOSEDEND FUNDS IS DOMINATED BY SMALL INVESTORS WHO TEND TO LOSE SIGHT OF CHEAPER COMPETING PRODUCTS AS THEY CHASE AFTER A HOT MARKET ANALYST STUART GOLDBERG AT MERRILL LYNCH HAS RECOMMENDED FOR MONTHS THAT INVESTORS SELL THE EXPENSIVE CLOSEDEND TEMPLETON EMERGING MARKETS FUND AND BUY THE CHEAPER TEMPLETON DEVELOPING MARKETS OPENEND FUND SOLD THROUGH STOCKBROKERS IF YOU'RE THINKING ABOUT BUYING EITHER ONE LOOK AT THE OPENEND MR GOLDBERG SAYS OF COURSE HIS PICK CARRIES A SALES CHARGE OR LOAD OF AS MUCH AS 575 MR TEMPLETON HASN'T REINVESTED THE PROCEEDS OF HIS SALE YET BUT HE SAYS I PROBABLY WILL PUT THE MONEY BACK INTO OUR OWN OPENEND FUND OF THE SAME TYPE WHY HASN'T HE DONE SO ALREADY THERE JUST DIDN'T SEEM TO BE ANY HURRY AND I'M BUSY IN OTHER WORDS IT'S NOT THAT HE BELIEVES PRICES IN THE SIZZLING EMERGING MARKETS MIGHT BE HEADED FOR A PLUNGE TEMPLETON FUNDS TODAY A SUBSIDIARY OF FRANKLIN RESOURCES MANAGES TWO DIVERSIFIED EMERGING MARKETS FUNDS FOR US INVESTORS BOTH FUNDS CURRENTLY HAVE THEIR LARGEST INVESTMENTS IN BRAZIL AND TURKEY THE BIGGEST INDIVIDUAL STOCKHOLDINGS IN BOTH FUNDS ARE PHILIPPINE LONG DISTANCE TELEPHONE CO QUOTED AT 48 3/8 DOWN 1/8 ON THE AMERICAN STOCK EXCHANGE YESTERDAY AND PHILIPPINE NATIONAL BANK WHICH ISN'T TRADED IN THE US MARKETS BECAUSE TEMPLETON DEVELOPING MARKETS IS AN OPENEND FUND ITS INVESTORS NEVER PAY MORE THAN THE PERSHARE VALUE OF THE PORTFOLIO PLUS THE LOAD SINCE MR TEMPLETON WOULD BE INVESTING MILLIONS HE WOULDN'T BE CHARGED A COMMISSION THE TWO FUNDS' HOLDINGS ARE NEARLY THE SAME THE IDEA IS SIMPLY TO SELL THE EXPENSIVE ONE AND BUY THE CHEAPER ONE NOT THAT MR TEMPLETON DID BADLY IN THE CLOSEDEND FUND IT ROSE 364 INCLUDING PRICE CHANGES AND DIVIDENDS FOR THE 52 WEEKS THROUGH SEPT 17 ACCORDING TO LIPPER ANALYTICAL SERVICES J MARK MOBIUS WHO MANAGES BOTH FUNDS FROM HONG KONG HAS RECOMMENDED SELLING THE CLOSEDEND AND BUYING THE OPENEND FOR MORE THAN A YEAR WE FRANKLY DON'T UNDERSTAND WHY THIS FUND HAS BEEN SELLING AT SUCH A BIG PREMIUM HE SAYS WITH AN OPENEND FUND AVAILABLE IT MAKES NO SENSE PAYING THE PREMIUM CLOSEDEND FUNDS ARE THE LAST BASTION OF THE INDIVIDUAL IN THE STOCK MARKET SAYS CATHERINE GILLIS EDITOR OF CHICAGO NEWSLETTER MORNINGSTAR CLOSEDEND FUNDS I DON'T THINK A LOT OF PEOPLE KNOW THAT THE OPENEND FUND EXISTS OR THAT MARK MOBIUS RUNS BOTH OF THEM EAGER INVESTORS ARE ALSO PAYING UP FOR THE CLOSEDEND MORGAN STANLEY EMERGING MARKETS FUND WHICH SELLS FOR A HEFTY 119 PREMIUM A PARALLEL OPENEND FUND FROM MORGAN STANLEY DOESN'T EVEN CHARGE A SALES COMMISSION ALTHOUGH ITS MINIMUM INITIAL INVESTMENT IS 500000 THE TEMPLETON DEVELOPING MARKETS OPENEND FUND LETS INVESTORS IN FOR AS LITTLE AS 100 ARE THE PREMIUMS IN THESE FUNDS A SIGN THAT EMERGING MARKETS ARE OVERHEATING MR MOBIUS SAYS THE GREAT INTEREST IN EMERGING MARKETS HAS PUSHED PRICES UP BUT HE ADDS NOBODY KNOWS WHEN THE MARKET IS AT A HIGH THERE'S NO REASON FOR SELLING EXCEPT I HAPPENED TO NOTICE THE PREMIUM MR TEMPLETON SAYS SHOULD OTHER SHAREHOLDERS SELL THE CLOSEDEND AND BUY THE OPENEND MR TEMPLETON SAYS THAT WOULD BE COMMON SENSE OUTOFFAVOR STOCKS GET BACKING OF AG EDWARDS THE ST LOUIS BROKERAGE FIRM RECOMMENDED EIGHT FALLEN ANGELS STOCKS THAT HAVE FALLEN TO WITHIN 10 OF THEIR 12MONTH LOWS IT'S THE TYPE OF BOTTOMFISHING LIST THAT INVESTORS CAN EXPECT WITH THE MARKET AT NEARRECORD LEVELS THE PICKS AMERICAN HOME PRODUCTS BRISTOLMYERS SQUIBB GREINER ENGINEERING HJ HEINZ KNIGHTRIDDER PET PHILIP MORRIS AND WMX TECHNOLOGIES ALL THE STOCKS FELL FOR GOOD REASONS FROM HEALTHCARE REFORM TO THE PUMMELING OF CONSUMER BRANDNAME COMPANIES BUT THEIR FALLS HAVE BEEN OVERDONE SAYS AG EDWARDS 9309220113 930811 UP IN SMOKE FADING GARBAGE CRISIS LEAVES INCINERATORS COMPETING FOR TRASH MUNICIPALITIES ARE DISMAYED WASTETOENERGY FEVER BURNS LOCAL TAXPAYERS TRAPPED IN THE DEATH SPIRAL' BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL IT MIGHT SEEM A BLESSING IN THIS CLUTTERED WORLD BUT FROM FLORIDA TO NEW HAMPSHIRE TO WISCONSIN COMMUNITIES ARE RUNNING SHORT OF TRASH AND IT IS COSTING THEM MONEY THE MUNICIPALITIES COLLECTIVELY SPENT BILLIONS OF DOLLARS TO BUILD BIG INCINERATORS BUT NOW DON'T HAVE ENOUGH REFUSE TO KEEP THE PLANTS BURNING FULL BLAST LA CROSSE WIS CAN'T FILL HALF THE CAPACITY OF AN INCINERATOR BUILT THERE IN 1988 BAY COUNTY FLA RESORTED TO BUYING WOOD CHIPS TO STOKE ITS INCINERATOR AND WARREN COUNTY NJ USES UNDERCOVER TRASH COPS TO STAKE OUT THE BRIDGES OVER THE DELAWARE RIVER TO PENNSYLVANIA TO MAKE SURE NO TRASH LEAVES THE GARDEN STATE WE NEED TRASH ASSERTS LORI PARRISH A COMMISSIONER IN BROWARD COUNTY FLA OFFICIALS THERE ARE LITERALLY RUMMAGING AROUND THE REST OF SOUTH FLORIDA TO FIND GARBAGE TO FEED THEIR 500 MILLION PAIR OF INCINERATORS IT'S KILLING US SHE SAYS PROMOTED AS WASTETOENERGY PLANTS BECAUSE THEY ALSO PRODUCE ELECTRICITY THE INCINERATORS WERE TOUTED AS THE TRIUMPH OF TECHNOLOGY OVER TRASH THEY WOULD ASSURE THAT CITIES FOR DECADES HAD A PLACE TO DISPOSE OF WASTE WHILE LESSENING THE NEED FOR SPRAWLING DUMPS TO VARYING DEGREES ENVIRONMENTAL OFFICIALS AT THE STATE AND FEDERAL LEVEL ENCOURAGED AN INCINERATOR BUILDING BINGE DURING THE 1980S WITH 142 PLANTS NOW BURNING ABOUT 30 MILLION TONS A YEAR OR 16 OF THE NATION'S TRASH BUT THE OFFICIALS PAID LITTLE MIND TO THE ECONOMICS OF BURNING TRASH VERY SIMPLY THE CURRENT ECONOMICS ARE TERRIBLE REQUIRING RESIDENTIAL AND COMMERCIAL CUSTOMERS AS WELL AS TAXPAYERS TO PAY HUNDREDS OF MILLIONS OF DOLLARS A YEAR OVER AND ABOVE THE GOING MARKET RATE FOR TRASH DISPOSAL THE AVERAGE INCINERATOR DISPOSAL FEE IS 56 A TON TWICE THE 28 AVERAGE AT DUMPS REPORTS SOLID WASTE PRICE DIGEST A TRADE JOURNAL MUNICIPAL OFFICIALS MADE THE PLUNGE INTO TRASH BURNING WITH THE BEST ADVICE MONEY COULD BUY HIRING ENGINEERING CONSULTANTS WALL STREET INVESTMENT BANKERS AND BOND LAWYERS ALL OF WHOM HAVE PROFITED HANDSOMELY FROM FEES CONNECTED TO BOND UNDERWRITINGS TO FINANCE INCINERATORS BUT ALMOST NONE OF THESE PEOPLE WERE SUFFICIENTLY SKEPTICAL OF THE SOCALLED GARBAGE CRISIS A PERCEIVED SHORTAGE OF DUMP CAPACITY THAT IN THE 1980S PUSHED UP DUMP FEES AND FRIGHTENED PUBLIC OFFICIALS INTO THINKING THAT DISPOSAL PRICES WOULD CLIMB EVER UPWARD AN INCINERATOR WENT THE LOGIC ALLOWED A CITY TO LOCK IN A DISPOSAL PRICE FOR 20 YEARS OR MORE SO WHY NOT BUILD IT BIG WITH THE EXTRA CAPACITY AN INCINERATOR COULD REAP HEFTY PROFITS BY TAKING TRASH FROM ELSEWHERE AT ESCALATING MARKET RATES THE GARBAGE CRISIS THOUGH IT APPEALED PERFECTLY TO THE NATION'S COLLECTIVE GUILT OVER THROWING AWAY SO MUCH STUFF WAS MORE FICTION THAN FACT IN TRUTH TRASH COMPANIES LED BY WMX TECHNOLOGIES INC FORMERLY WASTE MANAGEMENT INC AND BROWNINGFERRIS INDUSTRIES INC ALONG WITH MUNICIPALITIES CREATED HUGE AMOUNTS OF DISPOSAL CAPACITY IN RECENT YEARS AS WITH OFFICE BUILDINGS AND AIRLINES A SPACE GLUT HAS LED TO FIERCE PRICECUTTING AS DUMP AND INCINERATOR OWNERS COMPETE FOR REFUSE INCINERATORS WEREN'T DESIGNED TO BE ECONOMIC CONTENDS DOUGLAS R AUGENTHALER A TRASH STOCK ANALYST AT OPPENHEIMER & CO IN NEW YORK THEY WERE DESIGNED TO REPLACE A DISAPPEARING ASSET DUMPS THAT DIDN'T DISAPPEAR MOREOVER MANY MUNICIPALITIES AND THEIR CONSULTANTS OVERESTIMATED THE AMOUNT OF TRASH THEY WOULD BE GENERATING FAILING TO FORESEE SHARP REDUCTIONS FROM RECYCLING AND THE RECESSION A SLOWER ECONOMY GENERATES LESS WASTE INCINERATORS NEED TO OPERATE AT FULL CAPACITY TO MAKE THE MOST OF ELECTRICITY PRODUCTION WHICH ALSO BRINGS IN REVENUE AND TO SERVICE DEBT OF AS MUCH AS 300 MILLION PER PLANT CITIES THEREFORE HAVE BEEN FORCED TO BID FOR TRASH ON THE OPEN MARKET OFTEN AT DISPOSAL FEES FAR BELOW WHAT THEIR OWN RESIDENTS MUST PAY NEARLY ALL THE INCINERATORS ARE OPERATED AND MANY OWNED BY COMPANIES SUCH AS WMX TECHNOLOGIES OGDEN CORP AND WESTINGHOUSE ELECTRIC CORP IN HINDSIGHT THE PUBLIC SECTOR GOT MOST OF THE RISKS AND THE PRIVATE SECTOR MOST OF THE REWARDS IN BUILDING WASTETOENERGY FACILITIES TYPICALLY THE MUNICIPALITY PROVIDED FINANCING THE COMPANY GUARANTEED THE THING WOULD WORK THE MUNICIPALITY GUARANTEED A CERTAIN AMOUNT OF TRASH AT A SET PRICE THEN THE MARKET PRICE FOR DISPOSAL PLUNGED SO BROWARD COUNTY TRASH BURNS FOR 55 A TON AT ITS TWO BIG INCINERATORS BUT WASTE FROM ELSEWHERE IS WELCOMED AS CHEAPLY AS 42 IN MONTGOMERY COUNTY PA LOCALS PAY 6350 WHILE OUTSIDERS CAN DUMP FOR 41 IT WAS SUPPOSED TO WORK THE OTHER WAY AROUND SAYS DONALD SILVERSON MONTGOMERY COUNTY'S TRASH CHIEF IT'S A SORE POINT AT ITS WORST A SHORTFALL OF TRASH BEGETS A HIGHER LOCAL DUMP FEE TO COVER FIXED COSTS WHICH CHASES AWAY LOCAL HAULERS AND BEGETS A BIGGER SHORTFALL THE DEATH SPIRAL WASTE OFFICIALS CALL IT A CLAREMONT NH PLANT IS IN FULL SPIN WITH A 9650ATON FEE FOR LOCAL TRASH A 40ATON FEE TO ATTRACT OUTSIDE WASTE AND EVERY INDICATION THE DISPARITY WILL WORSEN IT'S AN ENDLESS CYCLE SAYS ALLEN DUSAULT HEAD OF THE NEW HAMPSHIREVERMONT SOLID WASTE PROJECT AND THINGS COULD GO FROM BAD TO WORSE FOR THE ECONOMICS OF INCINERATION CITIES ARE FACING HUGE COSTS TO FIT ALL BUT THE NEWEST PLANTS WITH MODERN AIRPOLLUTIONCONTROL SYSTEMS UTILITIES ARE FIGHTING BACK AGAINST A FEDERAL LAW THAT FORCES THEM TO BUY ELECTRICITY FROM INCINERATORS AT ABOVEMARKET PRICES AND THE SUPREME COURT HAS AGREED TO HEAR TWO CASES EITHER OF WHICH COULD PROVE DEVASTATING FOR MUNICIPALITIES BONDHOLDERS TAXPAYERS AND COMPANIES THAT OWN INCINERATORS ALL OF THIS HAS BROUGHT CONSTRUCTION OF NEW PLANTS TO A NEAR HALT IN ONE CASE THE HIGH COURT WILL DECIDE WHETHER THE ASH LEFT OVER FROM TRASH BURNING SHOULD BE TREATED AS A HAZARDOUS WASTE A FEDERAL APPEALS COURT IN CHICAGO SAYS IT SHOULD WHILE ONE IN NEW YORK SAYS IT SHOULDN'T AS OF NOW THE 85 MILLION TONS A YEAR OF ASH MOSTLY GO TO GARBAGE DUMPS AT RELATIVELY CHEAP RATES ENVIRONMENTAL GROUPS CONTEND ASH SHOULD BE TREATED AS HAZARDOUS BECAUSE IT CONTAINS HEAVY ETALS MUNICIPALITIES ASSERT ASH POSES NO HEALTH THREAT MOREOVER THEY SAY IF THE JUSTICES DECLARE ASH A HAZARDOUS WASTE ASH DISPOSAL COSTS COULD RISE TENFOLD ADDING 35 BILLION TO THE COST OF OPERATING THE COUNTRY'S 142 INCINERATORS THAT COULD FORCE INCINERATORS TO ROUGHLY TRIPLE THE DISPOSAL FEE THEY CHARGE FOR TRASH TO MORE THAN 150 A TON THE MUNICIPALITIES SAY MANY WOULD SIMPLY CLOSE WHICH COULD LEAD TO BILLIONS OF DOLLARS OF BOND DEFAULTS THE HIGH COURT ALSO WILL CONSIDER A CHALLENGE TO FLOW CONTROL A PRACTICE PERMITTING A MUNICIPALITY TO COMMANDEER ALL THE TRASH WITHIN ITS BORDERS AND DIRECT IT TO A FAVORED DISPOSAL SITE BECAUSE MANY INCINERATORS CHARGE PRICES FAR HIGHER THAN NEARBY DUMPS ONLY WITH FLOW CONTROL DO THEY REMAIN VIABLE HAULERS HATE FLOW CONTROL BECAUSE IT MAKES THEM PAY MORE PERTON TO DUMP THEIR LOADS THEIR ARGUMENT SUCCESSFUL IN SEVERAL LOWERCOURT CASES IS THAT THE PRACTICE ILLEGALLY RESTRICTS INTERSTATE COMMERCE MOST INCINERATORS ARE CLOSE ENOUGH TO A STATE LINE TO BE VULNERABLE TO THAT CLAIM ESPECIALLY SINCE HAULERS HAVE BECOME MORE ADEPT AT COMPACTING TRASH TO CHEAPLY CARRY BIG LOADS LONG DISTANCES BY TRUCK AND RAIL ALREADY 15 MILLION TONS OF TRASH A YEAR CROSS A STATE LINE TO BE DUMPED AS THE DISPOSAL BUSINESS BECOMES MORE REGIONAL AND LESS LOCAL JP MASCARO & SONS A REGIONAL PENNSYLVANIA HAULER SAYS IT SAVES MONEY BY TRUCKING LOADS 300 MILES TO A WEST VIRGINIA DUMP IT OWNS FOR INSTANCE RATHER THAN PAY A 53ATON FEE DESIGNATED BY FLOW CONTROL IN THE PHILADELPHIA SUBURBS A DECISION AGAINST FLOW CONTROL COULD SPARK AN ALLOUT PRICE WAR IN THE DISPOSAL BUSINESS DOMINANT HAULERS WMX TECHNOLOGIES AND BROWNINGFERRIS CONTROL HUGE AMOUNTS OF DUMP SPACE WHERE THEY WOULD LIKE TO TAKE MORE TRASH DUMPS WITH RELATIVELY LOW FIXED COSTS COULD RIDE OUT A PRICE WAR MANY CASHHUNGRY INCINERATORS COULDN'T IF WE LOSE FLOW CONTROL THOSE CONTRACTS BETWEEN CITIES AND INCINERATOR OPERATORS ARE NULL AND VOID SAYS H LANIER HICKMAN JR HEAD OF THE SOLID WASTE ASSOCIATION OF NORTH AMERICA A GROUP OF MOSTLY MUNICIPAL TRASH OFFICIALS AND THE MORE THAN 10 BILLION OF BONDS OUTSTANDING THAT BACK INCINERATOR PROJECTS ARE BELLY UP FLOW CONTROL WAS A LEGAL DEVICE THAT ALLOWED YOU TO NOT LOOK AT THE ECONOMICS SAYS MARIE PISECKI WHO RATES TRASHRELATED BONDS AT MOODY'S INVESTORS SERVICE BUT PEOPLE ARE LOOKING NOW MUNICIPALBONDFUND MANAGERS SUCH AS JOHN NUVEEN & CO WITH 350 MILLION IN TRASHRELATED BONDS AND VAN KAMPEN MERRITT INVESTMENT ADVISORY CORP WITH 264 MILLION ARE TRYING TO DETERMINE WHICH PROJECTS ARE MOST VULNERABLE SANDY D'IMPERIO AN OFFICIAL AT BOND INSURER AMBAC INDEMNITY CORP WHICH INSURES BONDS ISSUED TO BUILD 10 INCINERATION PROJECTS SAYS A LOSS OF FLOW CONTROL WOULD CAUSE VERY SEVERE PROBLEMS IN THE BUSINESS SUSAN EPSTEIN AT MUNICIPAL BOND INVESTORS ASSURANCE INC ANOTHER INSURER SAYS WE'RE TAKING A RELOOK AT OUR EXPOSURE THE US CONFERENCE OF MAYORS IS LOBBYING CONGRESS TO PASS FLOWCONTROL LEGISLATION SHOULD THE COURT STRIKE THE PRACTICE DOWN BUT EVEN AS THE LAW OF THE LAND IN 26 STATES OFFICIALS SAY FLOW CONTROL IS TOUGH TO ENFORCE COLUMBUS OHIO ESTIMATES IT LOSES ABOUT 15 OF THE TRASH THAT IS SUPPOSED TO GO TO ITS 2000TONADAY INCINERATOR THE FRANKLIN COUNTY SHERIFF IS INVESTIGATING AND 5000ADAY FINES ARE POSSIBLE FOR VIOLATORS BUT COMMERCIAL HAULERS IN PARTICULAR ROUTINELY CROSS MUNICIPAL BORDERS ON THEIR ROUTES SO WHOSE TRASH IS IT THE REALITY OF THE TRASH BUSINESS IS QUITE DIFFERENT THAN THE LEGAL STRUCTURE SAYS WILLIAM DARCY HEAD OF THE CONNECTICUT STATE AGENCY THAT OVERSEES TRASH BURNING INCINERATORS CHARGE AS MUCH AS 79 A TON THERE WHILE DUMP SPACE CAN BE HAD FOR 50 IF WE HAD 1000 ENFORCEMENT OFFICERS WE COULD STOP THE CHEATING HE SAYS TO SURVIVE WITHOUT LEGAL FLOW CONTROL SOME MUNICIPALITIES ARE RESORTING TO WHAT THEY CALL ECONOMIC FLOW CONTROL IN ESSENCE THEY SET THE DISPOSAL FEE AT AN INCINERATOR LOW ENOUGH TO ATTRACT TRASH THEN STUFF THE REST OF THE COSTS INTO THE TAX BASE THAT IS HOW MONTGOMERY COUNTY MD PLANS TO MAKE ITS PROPOSED 1800TONADAY 325 MILLION INCINERATION PROJECT VIABLE THE AFFLUENT COUNTY JUST NORTH OF WASHINGTON DC IS SURROUNDED BY RELATIVELY CHEAP AND VERY ABUNDANT DISPOSAL IN VIRGINIA WEST VIRGINIA AND SOUTHEASTERN PENNSYLVANIA ON THE WHOLE SAYS STEPHEN L SCHWEICH AN ANALYST WITH ROBERTSON STEPHENS & CO IN SAN FRANCISCO IT'S CHEAPER TO GO TO PHILADELPHIA TO DISPOSE OF MONTGOMERY COUNTY TRASH BUT THE COUNTY WANTED TO HANDLE ITS OWN TRASH AND ISN'T KEEN ON DUMPS ANNUAL TRASHCOLLECTION FEES WHICH ALSO FUND A ZEALOUS RECYCLING PROGRAM ARE EXPECTED TO RISE FROM 146 A HOUSEHOLD NEXT YEAR TO 246 BY 1999 COLUMBUS OHIO TRIED TO KEEP ITS INCINERATOR COMPETITIVE FOR 10 YEARS ROUGHLY MATCHING THE PRICE OF A NEARBY DUMP BUT THE EFFORT REQUIRED SUBSIDIES OF MORE THAN 100 MILLION IN TOTAL THE CITY RECENTLY THREW IN THE TOWEL GAVE THE BURNER TO A REGIONALWASTE AUTHORITY AND ADOPTED LEGAL FLOW CONTROL WHICH IT HOPES WILL REMAIN LEGAL DESPITE THE PROBLEMS IT IS EASY TO SEE HOW MUNICIPAL OFFICIALS FALL IN LOVE WITH INCINERATORS BUT FOR THE TRASH TRUCKS ROLLING ACROSS OUTDOOR SCALES THEY RESEMBLE A POWER PLANT NOT A DUMP NO RATS NO SEAGULLS SMELLS STAY INSIDE THE WALLS THE CONTROL ROOM RUN BY ENGINEERS HAS ENOUGH DIALS METERS AND VIDEO MONITORS TO RESEMBLE A SMALL NUCLEAR PLANT TRUCKS PULL INTO AN ENCLOSED DOCK TO DUMP INTO A GIANT TRASH CHAMBER SIX STORIES TALL HIGH ABOVE TWO CRANE OPERATORS CONTINUALLY FLUFF THE MOUND AND SLOWLY FEED TRASH TOWARD A BURNING GRATE THAT SLOPES DOWNWARD THE HEAT FIRES BOILERS THAT MAKE STEAM FOR ELECTRICITY INCINERATION OWNERS COMPLAIN THAT THE ENVIRONMENTAL PROTECTION AGENCY ISN'T HARD ENOUGH ON DUMPS WHICH GIVE THEM A COST ADVANTAGE BUT THE AGENCY SAYS IT IS NEUTRAL THE STUFF THAT GOES UP THE INCINERATOR STACK AFFECTS MORE PEOPLE THAN GARBAGE WATER GOING INTO THE GROUNDWATER SAYS BRUCE WEDDLE EPA'S TRASH CHIEF COMPANIES PROMOTE THE PLANTS AS A PARTNERSHIP WITH THE COMMUNITY BUT IT IS A ROCKY MARRIAGE IN A GLUTTED MARKET BROWARD COUNTY IS MAD AT WMX TECHNOLOGIES WHICH OWNS AND OPERATES TWIN 2250 TONADAY BURNERS THERE THE INCINERATORS ARE SUFFERING A SHORTFALL THAT COULD HIT 100000 TONS THIS YEAR UNDER A SOCALLED PUTORPAY DEAL THE COUNTY PAYS FOR AT LEAST 1095000 TONS EVEN IF IT INCINERATES OR PUTS LESS WMX TECHNOLOGIES ALSO OWNS A BIG DUMP IN THE COUNTY AND ACCEPTS TRASH THAT COULD BE BURNED WMX TOOK MORE THAN TWO MILLION TONS OF TRASH TO THE DUMP DURING THE EIGHT MONTHS ENDED MARCH 31 MOST OF IT FROM THE HURRICANE ANDREW CLEANUP THE COMPANY SAYS THE HURRICANE TRASH WAS TOO WET TO BURN STEVE ALEXANDER A BROWARD COUNTY OFFICIAL OBSERVES ONE OF THE PARTNERS IN THIS DEAL IS MAKING A WHOLE LOT OF MONEY THE COMPANY AND THE COUNTY ARE IN TALKS TO EASE THE BURDEN OF THE SHORTFALL WE'RE GOING TO DO EVERYTHING WE CAN TO MAKE SURE THEY'RE HAPPY SAYS A WMX TECHNOLOGIES SPOKESMAN BUT THAT LIKELY WILL REQUIRE TAKING MORE TRASH FROM NEIGHBORING DADE COUNTY WHICH ALSO IS HURTING LOWER VOLUME AT ITS DISPOSAL SITES ALREADY FORCED DADE TO RAISE PRICES TO 59 A TON FROM 45 IN JANUARY CONNECTICUT OFFICIALS ARE FIGHTING WMX TECHNOLOGIES' PLAN TO BUILD ANOTHER INCINERATOR IN THE STATE BECAUSE THEY SAY IT WOULD TAKE TRASH FROM ALREADYSTRUGGLING PLANTS THERE LA CROSSE COUNTY WIS SUED ITS ENGINEERING CONSULTANTS FOR OVERESTIMATING THE AREA'S TRASH VOLUME THE COUNTY COLLECTED 26 MILLION THE CLEAN AIR ACT MEANWHILE IS MAKING INCINERATION COSTLIER STILL PINELLAS COUNTY FLA EXPECTS RETROFITTING ITS 3000TONADAY BURNER TO COMPLY WITH AIR STANDARDS WILL COST ANYWHERE FROM 100 MILLION TO 200 MILLION INCLUDING LOST ELECTRICITY REVENUE AND DISPOSAL FEES WHILE THE PLANT IS DOWN THAT COULD FORCE THE COUNTY TO DOUBLE ITS DISPOSAL FEE FROM 3750 A TON SAYS THE COUNTY'S TRASH CHIEF BOB VAN DEMAN HAVING GUESSED WRONG ON THE DIRECTION OF DISPOSAL PRICES INCINERATION PROMOTERS LUCKILY CAN TAKE ADVANTAGE OF A FEDERAL PROGRAM THAT GUESSED WRONG ON ENERGY PRICES UTILITIES ARE REQUIRED TO BUY ELECTRICITY FROM SOCALLED NONUTILITY GENERATORS OR NUGS AT PRICES OFTEN BASED ON EARLY 1980S PROJECTIONS THAT OIL PRICES WOULD SKYROCKET SO WHILE ELECTRICITY CHANGES HANDS THESE DAYS BETWEEN UTILITIES AT 1 CENT TO 3 CENTS A KILOWATT HOUR SOME INCINERATORS CAN GET AS MUCH AS 11 CENTS A TON OF TRASH BURNED YIELDS ABOUT 600 KILOWATTS SO 2 CENTS A KILOWATT EQUALS 12 A TON 4 CENTS 24 A TON AND SO FORTH UTILITIES ARE TRYING TO LIMIT NEW NUGS AND RENEGOTIATE SUCH HIGHPRICED CONTRACTS NIAGARA MOHAWK POWER CORP WHICH HAS A GLUT OF POWER IS FORCED TO BUY NUG ELECTRICITY AT 6 CENTS A KILOWATT AND THEN SELL IT AT 1 OR 2 CENTS A 400 MILLION ANNUAL COST SOUTHERN CALIFORNIA EDISON CO SPENDS 750 MILLION A YEAR ABOVE MARKET RATES TO BUY NUG POWER A SPOKESMAN SAYS THAT'S WHY OUR RATES ARE SO HIGH SEE RELATED LETTERS LETTERS TO THE EDITOR WHY WE NEED WASTETOENERGY PLANTS WSJ SEPT 22 1993 9308110002 YY93 MM09 9309220079 930825 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB IN THE GRAND SWEEP OF ISSUES FACING RUSSIA AND THE US IT SEEMS A FAIRLY SMALL ONE PRESIDENT BORIS YELTSIN IS UNDER PRESSURE TO SIGN A LAW THAT WOULD SEVERELY RESTRICT FOREIGN RELIGIOUS MISSIONARIES OPERATING IN LONGATHEIST RUSSIA BUT THE STORY OF THIS SMALL STRUGGLE REVEALS SOMETHING LARGER ABOUT THE UNCERTAIN STATUS OF PERSONAL FREEDOM IN RUSSIA'S POLITICAL MAELSTROM THE FATE OF FOREIGN MISSIONARIES ALSO IS ONE OF THOSE HOTBUTTON ISSUES THAT COULD COLOR US ATTITUDES ABOUT HOW MUCH AID TO PROVIDE RUSSIA PRESIDENT CLINTON AND VICE PRESIDENT AL GORE WILL HAVE A CHANCE NEXT WEEK TO NUDGE RUSSIA IN THE RIGHT DIRECTION IF THEY DO SO DEFTLY SUCH A NUDGE WOULD BE A FAVOR NOT ONLY TO THE MISSIONARIES BUT TO PRESIDENT YELTSIN HIMSELF MR YELTSIN SEEMINGLY WANTS TO LEAVE RELIGIOUS FREEDOMS UNSHACKLED AND MIGHT APPRECIATE SUPPORT AND HE DOESN'T NEED ANY COMPLICATIONS IN HIS SEARCH FOR FOREIGN AID THIS SAGA BEGINS IN 1990 AS THE OLD SOVIET UNION WAS SHEDDING ITS COMMUNIST PAST RUSSIA'S LEGISLATURE PASSED A LAW TO END SEVEN DECADES OF GOVERNMENT REPRESSION AND TO GUARANTEE RELIGIOUS FREEDOM BEFORE LONG RELIGIOUS WORKERS OF ALL VARIETIES INCLUDING MANY AMERICANS BEGAN STREAMING INTO RUSSIA MUCH OF THE WORK THEY ARE DOING ISN'T HIGHWATTAGE PROSELYTIZING OF THE RUSSIAN CITIZENRY BUT THE MORE BASIC TASK OF HELPING TO GET RUSSIA'S OWN FRAIL RELIGIOUS INFRASTRUCTURE RUNNING BUT SOME OF THE RELIGIOUS ACTIVISTS WHO HAVE TURNED UP CLEARLY AREN'T WHAT RUSSIA HAD IN MIND RUSSIA HAS GOTTEN A FAIR DOSE OF HARE KRISHNAS DISCIPLES OF REV SUN MYUNG MOON AND TUBTHUMPING EVANGELICALS SOME RUSSIAN NATIONALISTS SEE A DARK FOREIGN EFFORT TO LURE RUSSIANS INTO CULTS MORE IMPORTANT THIS RELIGIOUS REVIVAL HAS STARTED TO LOOK LIKE A THREAT TO THE DOMINANCE OF THE RUSSIAN ORTHODOX CHURCH A CENTURIESOLD INSTITUTION THAT DOESN'T WANT TO MISS THE CHANCE TO RECLAIM ITS ONCEPOWERFUL ROLE NET RESULT A DRIVE WAS LAUNCHED IN THE RUSSIAN LEGISLATURE TO PUT CLAMPS ON FOREIGN MISSIONARIES CLIMAXING LAST MONTH IN THE PASSAGE OF AN AMENDMENT TO RUSSIA'S RELIGIOUSFREEDOM LAW THE NEW LEGISLATION WOULD REQUIRE FOREIGN RELIGIOUS WORKERS EITHER TO ATTACH THEMSELVES TO A RUSSIAN CHURCH OR OBTAIN ACCREDITATION FROM THE STATE THE LAW CLEARLY WOULD DRY UP MUCH MISSIONARY WORK BUT ITS RAMIFICATIONS ARE BROADER IT COULD REPRESENT RUSSIA'S FIRST ATTEMPT TO REASSERT CONTROL OVER RELIGION WE ARE SURE YOU WOULD AGREE THAT FREEDOM OF RELIGION IS ONE OF THE MOST BASIC HUMAN RIGHTS SAID MARYLAND DEMOCRATIC REP STENY HOYER AND ARIZONA DEMOCRATIC SEN DENNIS DECONCINI IN A RECENT LETTER OF CONCERN TO PRESIDENT YELTSIN THE NEW LEGISLATION THEY COMPLAINED IS A DISTURBING SETBACK SO FAR MR YELTSIN HAS HEEDED THAT ARGUMENT EARLIER THIS MONTH HE RETURNED THE LEGISLATION TO PARLIAMENT UNSIGNED COMPLAINING ABOUT ITS RESTRICTIONS ON MISSIONARIES AND SUGGESTING CHANGES THE RUSSIAN PARLIAMENT MAY TAKE UP A REVISED VERSION ON FRIDAY MANY RUSSIAN LAWMAKERS UNDOUBTEDLY THINK THEY ARE MERELY STOPPING A LOT OF UNSCRUPULOUS ELMER GANTRYS FROM PREYING ON THE POPULATION BUT THE LEGISLATURE'S EFFORTS WOULD UNDERCUT THE WORK OF WELLINTENTIONED MISSIONARIES WHOSE AIM IS TO HELP RUSSIANS NOT CONVERT THEM TO ANYTHING CONSIDER THE PREDICAMENT OF BISHOP JOSEPH WERTH ONE OF TWO VATICANAPPOINTED ADMINISTRATORS TRYING TO SERVE RUSSIA'S NEWLY LIBERATED CATHOLICS HE TENDS THE WORLD'S LARGEST DIOCESE A SIBERIAN REGION THAT COVERS ABOUT 10 OF THE WORLD'S LAND SURFACE IT'S THOUGHT THAT 17 MILLION CATHOLICS MANY OF THEM RUSSIANS OF GERMAN POLISH OR UKRAINIAN ANCESTRY LIVE IN THIS EXPANSIVE TERRITORY DECADES OF RELIGIOUS REPRESSION LEFT THE FARFLUNG FLOCK WITHOUT ANY CATHOLIC HIERARCHY BISHOP WERTH HAS JUST 36 PRIESTS FIVE OF THEM BORN IN THE FORMER SOVIET UNION THE REST ARE FROM AMONG OTHER PLACES THE US POLAND GERMANY ITALY AND IRELAND WITHOUT THE HELP OF FOREIGN MISSIONARIES THEY WOULD BE VERY HARD PUT TO DO THEIR WORK SAID THE REV BLAINE BURKEY A KANSAS PRIEST WHO HAS WORKED WITH BISHOP WERTH FOR MR YELTSIN'S GOVERNMENT THERE IS A DEEPER ISSUE IS MOSCOW READY TO ACCEPT ALL THE MESSY RAMIFICATIONS THAT GO ALONG WITH PERSONAL LIBERTY ONCE THE PROCESS OF NIBBLING AWAY AT FREEDOMS BEGINS IT MAY BE HARD TO STOP PRESIDENT CLINTON AND VICE PRESIDENT GORE WILL HAVE A CHANCE TO MAKE THAT POINT NEXT WEEK WHEN RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN VISITS WASHINGTON AS MR GORE'S GUEST A PUBLIC HARANGUE PROBABLY WOULDN'T HELP IT WOULD ONLY STRENGTHEN RUSSIAN NATIONALISTS' SUSPICIONS OF SOME FOREIGN CONSPIRACY BUT A QUIET EXPRESSION OF CONCERN ABOUT RELIGIOUS FREEDOM WOULD MAKE THE POINT THAT AMERICANS ARE INTERESTED AND ARE WATCHING SEE RELATED LETTER LETTERS TO THE EDITOR WHY THE DISDAIN WSJ SEPT 22 1993 9308250040 YY93 MM09 9309220005 930831 LETTERS TO THE EDITOR KING CASE ISN'T BLACKANDWHITE IN REGARD TO YOUR AUG 10 PAGE ONE STORY HARSH JUDGMENT WHY IS THE PRESS SO RELUCTANT TO HIGHLIGHT FALLACY AND SO EAGER TO WIDEN THE DIVISIONS BETWEEN AMERICANS THE SUCCESSFUL BLACK AMERICANS YOU INTERVIEWED WERE NOT THE TYPE OF PEOPLE WHO WOULD PUT THEMSELVES IN A SITUATION THAT WOULD EXPOSE THEM TO A BEATING LIKE THAT RECEIVED BY RODNEY KING THE INTERVIEWEES WOULD NOT SPEND AN EVENING GETTING DRUNK AND THEN LEAD THE POLICE ON A HIGHSPEED CHASE ON FREEWAYS AND STREETS RISKING THE LIVES OF ANYONE FOOLISH ENOUGH TO VENTURE ONTO A PUBLIC BYWAY THEY ARE NOT THE SORT OF PEOPLE WHO WHEN PULLED OVER BY THE POLICE WOULD REFUSE TO SUBMIT TO A LAWFUL ARREST OR BECOME COMBATIVE WITH OFFICERS PERFORMING THEIR DUTIES IN SHORT YOUR INTERVIEWEES ARE DECENT LAW ABIDING CITIZENS IT IS THAT DIFFERENCE THAT ENSURES THEY WILL NOT SUFFER THE SAME FATE AS RODNEY KING A FATE THAT JUDGE DAVIES NOTED WAS ROOTED SQUARELY IN KING'S CONDUCT IT IS UNREASONABLE TO EQUATE THE LAWLESSNESS OF THE DEFENDANTS IN THE DENNY CASE WHO HAD NO LEGAL OR MORAL RIGHT TO DETAIN MUCH LESS INJURE REGINALD DENNY WITH THE LAWFUL ACTIONS OF THE LAPD OFFICERS WHO ATTEMPTED TO ARREST RODNEY KING FOR A SMORGASBORD OF OFFENSES JUDGE DAVIES IN THE FEDERAL COURT SENTENCING HEARING STATED THAT THE BLOWS STRUCK THAT INJURED KING WERE ADMINISTERED DURING A LEGAL EFFORT TO ARREST HIM FOR HIS ILLEGAL AND DANGEROUS BEHAVIOR IT WAS ONLY LATER THAT THE ACTIONS ROSE TO THE LEVEL OF CRIMINALITY PEOPLE CHOOSE TO FORGET THAT KING'S COMPANIONS OBEYED THE LAWFUL ORDERS OF THE POLICE AT THE SCENE AND WERE TAKEN INTO CUSTODY WITHOUT INCIDENT BLACK AMERICANS WILL NEVER FEEL AT EASE IN OUR SOCIETY UNTIL THEY ABANDON THE MENTALITY OF VICTIMIZATION A MINDSET IRRESPONSIBLY REINFORCED BY PURPORTED CIVIL RIGHTS LEADERS WHO MUST KEEP BLACKS AND WHITES FROM TRUSTING EACH OTHER IN ORDER TO MAINTAIN THEIR OWN POWER BASE I AM REMINDED THAT THE ALLEGED MURDERER OF RABBI KAHANE WAS ACQUITTED AND WE ARE EVEN AT THIS LATE DATE MADE TO EQUATE THE DEATH OF A BLACK CHILD IN A CROWN HEIGHTS AUTO ACCIDENT WITH THE UNPROVOKED STABBING OF AN ORTHODOX JEWISH STUDENT AND YES THE ALLEGED MURDERER WAS ACQUITTED IN THAT CASE TOO YOU MIGHT SAY THAT MANY WELLOFF WHITES SEE INJUSTICE IN CERTAIN CASES OF MURDER LACK OF FAITH IS NOT A FUNCTION OF COLOR AND MISCARRIAGES OF JUSTICE DO NOT FAVOR ONLY A SINGLE RACE THE INABILITY TO APPRECIATE THE DIFFERENCE BETWEEN THE BEATINGS OF TRUCKER REGINALD DENNY AND MOTORIST RODNEY KING ILLUSTRATES A DEFICIENCY IN LOGIC THAT APPARENTLY AFFECTS BLACKS OF SUNDRY ECONOMIC STRIPES AND ACCOMPLISHMENTS CLEARLY DENNY WAS BUT AN INNOCENT TRUCKER WHO MERELY HAPPENED TO BE IN THE WRONG PLACE AT THE WRONG TIME WHILE KING SPEEDING LED POLICE ON AN EIGHTMILE 115MPH CAR CHASE INCLUDING DOWN SIDESTREETS RECKLESSLY ENDANGERED LIVES RESISTED POLICE DIRECTIONS ONCE STOPPED AND PRECIPITATED ANY VIOLENCE THAT OCCURRED REMEMBER THE POLICE DID NOT HAVE THE OPTION TO JUST WALK AWAY THEY HAD NO CHOICE BUT TO CONFRONT KING'S VIOLENCE DESPITE THESE DIFFERENCES BLACKS EVEN WELLOFF BLACKS REFERRING TO KING REPEATEDLY VOICE THE MANTRA THAT COULD HAVE BEEN ME WHY ARE THEY NOT PROTESTING THAT DENNY COULD HAVE BEEN THEM I HAVE TO BELIEVE THAT YOU MISQUOTED THE BLACK DOCTOR WHEN YOU CLAIMED HE SAID ANY BLACK MAN IN THIS CITY INCLUDING ME COULD HAVE BEEN IN RODNEY KING'S PLACE IF I FIND MYSELF STANDING NEXT TO A 42YEAROLD AFRICANAMERICAN MD WHO IS CHAIRMAN OF A HOSPITAL OBSTETRICSGYNECOLOGY DEPARTMENT I'M NOT INCLINED TO BELIEVE THAT THIS IS THE SORT OF PERSON WHO WOULD RECKLESSLY ENDANGER LIVES BY DRIVING WHILE DRUNK AND LEADING POLICE ON A HIGH SPEED CHASE AND LATER THROW OFF TWO OFFICERS WHO ARE TRYING TO HANDCUFF HIM I AGREE WITH REV MURRAY WHO ASKS THAT THESE BLACK BOYS THE DENNY DEFENDANTS GET THE SAME CONSIDERATION YOU GAVE THE WHITE BOYS THE JUDGE WHO SENTENCED OFFICERS KOON AND POWELL CITED AS A REASON FOR LENIENCY THE FACT THE OFFICERS WERE INITIALLY MAKING A LEGITIMATE ARREST OF A SUSPECT WHO HAD BEEN ENDANGERING LIVES AND WHO RESISTED ARREST AND ACTED IN A THREATENING MANNER IF ANY CONSIDERATION OF THIS TYPE APPLIES TO THE DEFENDANTS IN THE ATTACK ON DENNY IT SHOULD CERTAINLY BE CONSIDERED GROUNDS FOR LENIENCY I'M WHITE AND I'M NOT A RACIST NOR HAVE I BEEN SOCIALIZED TO BELIEVE THAT BLACK LIVES ARE WORTH LESS THAN WHITE LIVES NEVERTHELESS IT IS VERY DISTURBING TO HEAR AFRICANAMERICANS INCESSANTLY PROMOTING THE IDEA THAT ALL ENCOUNTERS BETWEEN BLACKS AND WHITES ARE DRIVEN BY SOME INSIDIOUS WHITE RACISM I SUGGEST RESPECTFULLY THAT IT IS THIS ATTITUDE THAT IS RACIST AND IS DETRIMENTAL TO ACHIEVING THE SOCIAL HARMONY WE ALL WANT IT IS BEYOND ME HOW THE LAWYERS CAN CALL THE KING BEATING TWO DIFFERENT OFFENSES AND HENCE DESERVING OF TWO DIFFERENT TRIALS CONTRARY TO THE DOUBLE JEOPARDY CLAUSE OF THE CONSTITUTION THE SECOND TRIAL WAS A PURE CASE OF THROWING A SACRIFICE TO AN ANGRY CROWD TO BUY SOME GOOD BEHAVIOR FOR AT LEAST A WHILE THIS SORT OF THING BECAME FAMOUS 200 YEARS AGO IN THE FRENCH REVOLUTION WHEN A LOT OF YELLING FROM THE SIDELINES WAS ENOUGH TO CONVICT AND EXECUTE SOMEONE OR ANYONE AN ASSASSINATION DISGUISED AS A TRIAL SEE RELATED LETTER LETTERS TO THE EDITOR DIALOGUE IS FIRST STEP WSJ SEPT 22 1993 9308310082 YY93 MM09 9309220003 930809 SILENCE OF THE HAMS BY TIMOTHY PENNY AND HARRIS FAWELL WHILE WASHINGTON IS NOTORIOUS FOR GENERATING A SURPLUS OF RHETORIC SOMETHING OF A CANDOR DEFICIT PREVAILS WHEN IT COMES TO THE SUBJECT OF PORKBARREL SPENDING THE SILENCE OF THE HAMS ON THAT PARTICULAR SUBJECT IS EASY ENOUGH TO EXPLAIN MEMBERS WHO BELIEVE THAT THEIR POWER AND POPULARITY ARE PREDICATED ON AN ABILITY TO BRING HOME THE BACON ARE LOATH TO SQUEAL ON COLLEAGUES WHO BELIEVING IT TOO ARE JOSTLING EACH OTHER FOR SPACE AT THE FEDERAL TROUGH THEY PREFER TO FEED THERE QUIETLY UNFETTERED BY PROCEDURAL IMPEDIMENTS OR THE OBJECTIONS OF IDEALISTS JUNIOR MEMBERS PATIENTLY WAIT FOR THEIR TURN AT THE TROUGH POSITIONING THEMSELVES FOR PRIME COMMITTEE ASSIGNMENTS AND SUPPING ON THOSE SCRAPS OF PORK THEIR ALLEGIANCE TO THE BOSS HOGS CAN BUY THIS YOU FILL MY SNOUT AND I'LL FILL YOURS ETHOS WILL COST TAXPAYERS PLENTY IN 1993 196 BILLION ACCORDING TO CONGRESSIONAL PORKBUSTERS COALITION CRITERIA 62 BILLION ACCORDING TO CITIZENS AGAINST GOVERNMENT WASTE CAGW EVEN MORE BY OTHER ESTIMATES EVEN MEMBERS DISINCLINED TO SKIRT PROCEDURES OR UNSCHOOLED IN THE PORCINE ARTS ARE COWED INTO ACQUIESCENCE PREFERRING TO LOOK THE OTHER WAY WHEN THE FEEDING FRENZY BEGINS CHALLENGE THE WRONG COLLEAGUE'S PORKY PROCLIVITIES AFTER ALL AND YOU COULD FIND A LEGITIMATE FEDERAL APPROPRIATION IN YOUR DISTRICT SUDDENLY EVAPORATE YET THE SILENCE IS OCCASIONALLY BROKEN THEIR LICENSE TO RAID THE TREASURY IS BEING CHALLENGED BY THE 78 MEMBERS OF THE BIPARTISAN CONGRESSIONAL PORKBUSTERS COALITION SIMILARLY OUR SPENDING PRIORITY REFORM ACT OF 1993 TARGETS FOR ELIMINATION 746 INDIVIDUAL PORK PROJECTS WORTH 19 BILLION NEEDLESS TO SAY THIS LEGISLATION HASN'T BEEN GREETED WITH GREAT ENTHUSIASM BY SOME COLLEAGUES YET ITS EXISTENCE IS A SIGN THAT CHANGE HOWEVER GLACIAL IS COMING TO CAPITOL HILL PRIVATE WATCHDOG GROUPS SUCH AS CAGW WHOSE ANNUAL PIG BOOK PORK EXPOSE HAS BEEN KNOWN TO KEEP CERTAIN CAPITOL HILL PRESS SECRETARIES SPINNING OVERTIME HAVE DRAWN FIRE AS WELL FOR BRINGING THIS EGREGIOUS WASTE OF TAX DOLLARS TO THE PUBLIC'S ATTENTION THESE SPINMEISTERS WOULD ARGUE THAT PORK IS IN THE EYE OF THE BEHOLDER THAT ONE MAN'S RANCID PORKBARREL PROJECT IS ANOTHER'S BENEFICIAL PUBLICWORKS PROJECT HOW IS AN OUTSIDER TO JUDGE THE IMPORTANCE OF THIS EARMARK TO A CONGRESSIONAL DISTRICT AND ITS CONSTITUENCY LISTEN CAREFULLY AS YOU PASS THROUGH CAPITOL HILL'S CLOAK ROOMS AND YOU'LL HEAR THESE AND OTHER SPURIOUS JUSTIFICATIONS FOR BRINGING HOME THE BACON EVERYONE ELSE IS CARVING HIMSELF OUT A PIECE OF THE PIE IT'S POINTED OUT SO WHY SHOULDN'T I WHEN THE FEDERAL GOVERNMENT IS SPENDING OVER A TRILLION DOLLARS A YEAR WHAT DIFFERENCE WILL IT MAKE IF I TUCK AWAY A LITTLE GIFT FOR MY ALMA MATER MY CONSTITUENTS PAY TAXES THEY'RE ENTITLED TO GET A LITTLE SOMETHING BACK FOR THEIR INVESTMENT THIS MENTALITY MULTIPLIED BY THE HUNDREDS OF MEMBERS WHO SURRENDER TO ITS ALLURE ACCOUNTS IN LARGE PART FOR THE SOARING BUDGET DEFICITS AND OMINOUS NATIONAL DEBT WEIGHING DOWN OUR ECONOMY WHILE IT MAY IN FACT BE DIFFICULT FOR ONE MEMBER OF CONGRESS TO APPRECIATE THE MERITS OF ANOTHER'S PET PROJECT IDENTIFYING PORK ISN'T THE INEXACT SCIENCE SOME WOULD HAVE US BELIEVE THAT'S BECAUSE PORK OFTEN HAS MORE TO DO WITH PROCEDURAL ISSUES THAN WITH THE MERIT OF INDIVIDUAL PROJECTS BROADLY SPEAKING PORK IS FEDERAL SPENDING DONE IN CIRCUMVENTION OF ESTABLISHED APPROPRIATIONS PROCEDURES IN AN EFFORT TO COUNTER THE USUAL RATIONALIZING THAT GOES ON WHEN A MEMBER IS CAUGHT WITH HIS FACE IN THE TROUGH THE PORKBUSTERS COALITION HAS DEVELOPED SEVEN TESTS TO IDENTIFY WASTEFUL SPENDING THE PORKBUSTERS CONSIDER ANY PROJECT MEETING THREE OR MORE OF THESE CRITERIA PROCEDURAL PORK WE'RE ASKING ONLY THIS OF OUR COLLEAGUES THAT THEY FOLLOW ESTABLISHED PROCEDURES AND PLAY BY THE RULES NOT EVERYONE'S SACRED COW CAN SURVIVE WHEN THE SERIOUS BUDGET CUTTING BEGINS AND THOSE PROJECTS THAT CAN'T SURVIVE THE SCRUTINY AND COMPETITIVENESS OF THE ESTABLISHED APPROPRIATIONS PROCESS AREN'T WORTHY OF FEDERAL FUNDING NO ONE ARGUES THAT CUTTING ALL THE PORK OUT OF THE FEDERAL BUDGET WILL BALANCE THE BOOKS NOR CAN THE LINEITEM VETO ERASE THE DEFICIT SINGLEHANDEDLY WHICH IS NO ARGUMENT AGAINST ITS EFFICACY AS ONE POTENT ARROW IN THE REFORMER'S QUIVER BUT THE JOURNEY BACK FROM THE BRINK OF FISCAL OBLIVION BEGINS WITH A SINGLE STEP IF WE CAN'T TAKE THE FIRST TODDLING STEPS TOWARD ENDING ILLEGITIMATE FEDERAL SPENDING HOW CAN THE PEOPLE TRUST US TO TIGHTEN THE REINS ON LEGITIMATE EXPENDITURES MR FAWELL IS A REPUBLICAN CONGRESSMAN FROM ILLINOIS MR PENNY WHO ON FRIDAY ANNOUNCED HIS RETIREMENT AFTER THIS TERM IS A 41YEAROLD DEMOCRATIC CONGRESSMAN FROM MINNESOTA A RELATED EDITORIAL APPEARS TODAY SEE RELATED LETTER LETTERS TO THE EDITOR MAKING PIGS' EARMARKS OUT OF RESEARCH GRANTS WSJ SEPT 22 1993 9308090035 YY93 MM09 9309210161 930921 WHO'S NEWS STARCRAFT AUTOMOTIVE CORP STARCRAFT AUTOMOTIVE CORP GOSHEN IND ALLEN H NEUHARTH 69 YEARS OLD FORMER CHAIRMAN AND CHIEF EXECUTIVE OF GANNETT CO WAS NAMED A DIRECTOR OF THIS MAKER OF CUSTOM VAN CONVERSIONS INCREASING BOARD MEMBERSHIP TO FIVE 9309210160 930921 WHO'S NEWS SARATOGA SPRING WATER CO SARATOGA SPRING WATER CO SARATOGA SPRINGS NY THIS WATER BOTTLING COMPANY NAMED ADAM MADKOUR CHIEF OPERATING OFFICER A NEW POSITION MR MADKOUR 42 YEARS OLD PREVIOUSLY WAS MANUFACTURING MANAGER AT DEER PARK SPRING WATER A UNIT OF CLOROX CO 9309210159 930921 CORPORATE FOCUS ZALE POLISHES UP DEBT OTHER WOES FLAW POSSIBLE GEM INVESTIGATIONS SLUGGISH CHANGES AND LOSS OF SALESPEOPLE TARNISH RECOVERY BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS ZALE CORP EMERGED FROM BANKRUPTCY PROCEEDINGS LAST MONTH WITH A LOVELY BALANCE SHEET SOME ROSY PROJECTIONS AND A PILE OF PROBLEMS THE NATION'S LARGEST JEWELRY RETAILER IN SALES AND NUMBER OF STORES ZALE HAS A THIRD FEWER STORES THESE DAYS AND FACES FIERCE COMPETITION AMID A WEAK ECONOMIC RECOVERY AND PREDICTIONS OF A BLEAK CHRISTMAS RETAILING SEASON TURNOVER OF SALES CLERKS TOPS 60 WELL ABOVE THE 30 TO 35 INDUSTRY AVERAGE AND IT'S NOT JUST SALES CLERKS WHO ARE LEAVING A FEW WEEKS AGO A DISSATISFIED BOARD JETTISONED DEAN GROUSSMAN ZALE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LESS THAN A YEAR ZALE RECENTLY REPORTED A WORSETHANEXPECTED 334 MILLION LOSS IN ITS FISCAL FIRST QUARTER ENDED JUNE 30 AND SLASHED ESTIMATES OF OPERATING PROFIT FOR THE FISCAL YEAR ENDING MARCH 31 1994 TO BETWEEN 61 MILLION AND 66 MILLION FROM AN 86 MILLION ESTIMATE MADE IN MARCH IT ALSO HAS DISCLOSED THAT THE FEDERAL BUREAU OF INVESTIGATION THE SECURITIES AND EXCHANGE COMMISSION THE DEPARTMENT OF LABOR AND A DALLAS FEDERAL GRAND JURY ARE INVESTIGATING POSSIBLE ACCOUNTING IRREGULARITIES AND OTHER ALLEGATIONS THAT PREDATE THE BANKRUPTCY FILING ZALE'S OUTLOOK COULD IMPROVE WITH AN OVERHAUL OF MARKETING STRATEGY CRITICS CONTEND NOW THAT THEY'VE DUMPED ALL THAT DEBT THE BALANCE SHEET LOOKS REALLY SEXY SAYS MARTIN RAPAPORT A NEW YORK DIAMOND BROKER THE QUESTION ON THE OPERATING SIDE IS WHERE'S THE BEEF WHERE'S THE MONEY GOING TO COME FROM MR GROUSSMAN HAD HIRED LISA GAVALES FROM PRICE WATERHOUSE TO DEVISE NEW BUSINESS STRATEGIES INCLUDING A MANDATE SHE SAYS TO LOOK AT ANY AND ALL MEANS OF MOVING JEWELRY THAT SHE SAYS INCLUDES CATALOGS TELEVISION SHOPPING OR OTHER STORE FORMATS A DISTINCT DEPARTURE FOR A COMPANY THAT HAS BEEN MALLBASED JUST DAYS AFTER SHE ARRIVED THOUGH MR GROUSSMAN WAS OUSTED HOWEVER ANDREAS LUDWIG ACTING CHIEF EXECUTIVE HAS ENDORSED THE MARKETING EXPERIMENTATION MS GAVALES SAYS ZALE EXPECTS TO START TESTING NEW CONCEPTS WITHIN 18 MONTHS AND MAY FUNDAMENTALLY CHANGE ITS BUSINESS PLAN IN THE NEXT FEW YEARS FOR NOW ZALE WILL RELY IRONICALLY ON A GRAND PLAN DEVELOPED BEFORE ITS BANKRUPTCY FILING BY IRVING GERSTEIN THE FORMER CHIEF EXECUTIVE WHOSE ACQUISITION SPREE FINANCED BY JUNK BONDS GENERALLY IS BLAMED FOR THE COMPANY'S PROBLEMS THAT PLAN MOVES THE COMPANY IN THE RIGHT DIRECTION ANALYSTS SAY ALTHOUGH SOME FEAR IT ISN'T MOVING FAST ENOUGH FOR EXAMPLE TO ELIMINATE THE CANNIBALIZING COMPETITION BETWEEN ITS FLAGSHIP ZALE AND GORDON DIVISIONS THE COMPANY IS ESTABLISHING DISTINCT IDENTITIES FOR EACH USING COMPUTERIZED POINTOFSALE DATA THE COMPANY CREATED PROFILES OF EACH DIVISION'S CUSTOMERS STYLISTICALLY CONSERVATIVE WHITECOLLAR CONSUMERS WITH BLUECOLLAR ROOTS AT ZALE AND BLUECOLLAR ETHNICALLY DIVERSE SHOPPERS WHO PREFER BOLDER STYLES AT GORDON ZALE THEN DECIDED TO REMODEL THE STORES IN THEIR CUSTOMERS' IMAGE AN OPEN CASUAL LOOK FOR GORDON AND AN ENCLOSED ELEGANT DECOR FOR ZALE AND IT MERGED THE STORES' BUYING DEPARTMENTS TO ENSURE DISTINCTIVE INVENTORY FOR EACH BUT SLOW TURNOVER MEANS THE INVENTORY CHANGES HAVE TAKEN 18 MONTHS TO START SHOWING UP AND ZALE SAYS THE REMODELING EFFORT WILL TAKE MORE THAN FIVE YEARS THAT DELAY DELIGHTS COMPETITORS FROM MASSMERCHANT RETAILERS SUCH AS SERVICE MERCHANDISE CO HOME SHOPPING NETWORK INC AND WALMART STORES INC AT THE LOW END OF THE JEWELRY MARKET TO AGGRESSIVE REGIONAL JEWELRY CHAINS AT THE HIGH END WE LOVE COMPETING AGAINST ZALE SAYS JOHN COHEN COCHIEF EXECUTIVE OF CARLYLE & CO OF GREENSBORO NC AN 83STORE REGIONAL CHAIN THEY'VE HAD TROUBLE OFFERING COMPETITIVE VALUE TO THE CONSUMER MR COHEN SAYS ZALE NEEDS TO DUMP ITS OLD STRATEGY OF HIGH MARKUPS FOLLOWED BY LOUDLY TRUMPETED DISCOUNTS AND TO ATTRACT BETTERTRAINED SALESPEOPLE MR LUDWIG SAYS ZALE IS MOVING TOWARD THE EVERYDAY LOW PRICES STRATEGY BUT HE ADDS YOU DON'T DO THAT OVERNIGHT IT'S TOO DISRUPTIVE FURTHER MR LUDWIG SAYS ZALE WON'T GO HEADON AGAINST DISCOUNTERS OUR OPPORTUNITIES ARE WITHIN THE TRADITIONAL SEGMENT OF THE MARKET HE INSISTS THERE ZALE CAN USE ITS SIZE TO DEMAND EXCLUSIVE DESIGNS FROM JEWELRY MANUFACTURERS TO EXTEND CREDIT TO CUSTOMERS ON FAVORABLE TERMS AND TO BUY ADVERTISING HE EXPLAINS BUT SELLING JEWELRY REQUIRES EXPERIENCED WELLTRAINED SALES ASSOCIATES WHO PROJECT A TRUSTWORTHY IMAGE MR LUDWIG PREDICTS THAT TURNOVER WILL SLOW NOW THAT THE BANKRUPTCY CLOUD HAS BEEN LIFTED AND THE COMPANY CAN POUR FRESH FUNDS INTO TRAINING ZALE ALSO HAS BEGUN SENDING OUT INFORMATIONAL VIDEOS TO CALM EMPLOYEE CONCERNS ABOUT THE COMPANY'S FINANCIAL CONDITION BUT THAT WON'T BE EASY WITH ALL THOSE INVESTIGATIONS HANGING FIRE ACCORDING TO BANKRUPTCYCOURT FILINGS IN DALLAS A FEDERAL GRAND JURY IS LOOKING INTO THE COMPANY'S ACTIONS PRIOR TO ITS 1991 BANKRUPTCYCOURT FILING THE COMPANY'S FILINGS SAY THE FBI HAS QUIZZED CURRENT AND FORMER OFFICERS ABOUT ALLEGED FINANCIAL MISREPRESENTATIONS RELATED TO THE POSTDATED SALE OF AN ISRAELI SUBSIDIARY AND THE ALLEGED MANIPULATION OF A NEWLY CREATED EMPLOYEE STOCK OWNERSHIP PLAN TO FREE THENCOOWNER PEOPLES JEWELLERS LTD OF TORONTO FROM 243 MILLION IN GUARANTEES ON INTERCOMPANY DEBT ANOTHER WILD CARD IS INVESTOR LEON BLACK THE FORMER DREXEL BURNHAM LAMBERT MERGERS SPECIALIST WHO HAS EMERGED AS A MAJOR FIGURE IN CORPORATE ACQUISITIONS OF LATE MR BLACK AND HIS PARTNERS THROUGH APOLLO JEWELRY PARTNERS LP HAVE ACCUMULATED A 14 STAKE IN ZALE AND A BOARD SEAT FOR PETER COPSES AN APOLLO PARTNER MR COPSES SAYS APOLLO VIEWS ZALE AS A LONGTERM INVESTMENT THE COMPANY'S MOST IMMEDIATE PROBLEMS ARE TO GET THROUGH THE ALLIMPORTANT CHRISTMAS SEASON AND TO FIND A REPLACEMENT FOR MR GROUSSMAN THE FORMER CEO WHO NAVIGATED ZALE THROUGH A REORGANIZATION THAT INCLUDED CLOSING 724 STORES AND WIPING OUT 16 BILLION IN DEBT WAS OUSTED BY THE NEW BOARD TWO DAYS AFTER THE COMPANY EMERGED FROM BANKRUPTCY BOARD MEMBERS SAY THEY WANT A MORE AGGRESSIVE LEADER MEANWHILE MR LUDWIG WHO ISN'T CONSIDERED A CONTENDER FOR THE PERMANENT JOB REMAINS OPTIMISTIC CITING THE SCHEDULED FALL LAUNCH OF A 3 MILLION ADVERTISING CAMPAIGN THE MOST AGGRESSIVE IN YEARS THE CAMPAIGN INCLUDES A 750000 CATALOG FOR ITS UPSCALE FINE JEWELRY GUILD DIVISION ITS FIRST SINCE 1989 ZALE STILL HAS A TREMENDOUS BASE OF CUSTOMERS WHO ARE LOYAL KNOW THEY CAN BUY ON CREDIT AND DON'T KNOW ANYTHING ABOUT THE BANKRUPTCY SAYS MICHAEL D ROMAN CHAIRMAN OF JEWELERS OF AMERICA AN INDUSTRY TRADE GROUP AND THEY'VE GOT STORES IN EVERY IMPORTANT MALL IN THIS COUNTRY WITH THE PROPER PACKAGE THEY CAN ENTICE PEOPLE BACK ZALE DIVISION FOCUSES ON DIAMOND JEWELRY IN THE 100 TO 650 PRICE RANGE FINE JEWELER'S GUILD/TRADITIONAL DIVISIONS SELLS JEWELRY AND BRANDNAME WATCHES MOSTLY IN A PRICE RANGE OF 250 TO 1000 GORDON DIVISION SELLS JEWELRY AND WATCHES MOSTLY IN A PRICE RANGE OF 75 TO 500 DIAMOND PARK DIVISION OPERATES OUT OF LEASED LOCATIONS IN DEPARTMENT STORES SELLS JEWELRY MOSTLY IN THE 75 TO 500 RANGE REGIONAL JEWELRY CHAINS AND INDEPENDENT STORES NATIONAL JEWELRY CHAINS SUCH AS STERLING JEWELRY CORP DEPARTMENT STORES DISCOUNT STORES CATALOG SHOWROOMS AND WAREHOUSE CLUBS SUCH AS PRICE CO 9309210158 930921 WHO'S NEWS LIPOSOME CO LIPOSOME CO PRINCETON NJ BROOKS BOVEROUX 50 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS DEVELOPER OF LIPOSOME AND LIPIDBASED PHARMACEUTICALS HE SUCCEEDS ANNE VAN LENT 45 WHO WAS NAMED EXECUTIVE VICE PRESIDENT OF CLOSELY HELD TROPHIX PHARMACEUTICALS INC MORRISTOWN NJ MR BOVEROUX WAS PREVIOUSLY CHIEF FINANCIAL OFFICER OF IMCLONE SYSTEMS INC A NEW YORK BIOTECHNOLOGY CONCERN 9309210157 930921 WHO'S NEWS LONG JOHN SILVER'S RESTAURANTS INC LONG JOHN SILVER'S RESTAURANTS INC LEXINGTON KY CLYDE E CULP 50 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS 1500UNIT FASTFOOD RESTAURANT CHAIN MR CULP A LONG JOHN SILVER'S DIRECTOR SINCE 1990 PREVIOUSLY SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF THE EMBASSY SUITES UNIT OF PROMUS COS MR CULP SUCCEEDS CLINTON A CLARK WHO RESIGNED IN JULY 9309210156 930921 WHO'S NEWS DUPLEX PRODUCTS INC DUPLEX PRODUCTS INC SYCAMORE ILL BENJAMIN L MCSWINEY 43 YEARS OLD FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WHITE STAR GRAPHICS WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF THIS MAKER OF BUSINESS FORMS THE COMPANY ALSO NAMED DAVID J ESKRA 51 CHAIRMAN SUCCEEDING CARL L PETERSON 59 WHO IS RETIRING MR ESKRA WHO WAS PRESIDENT WILL CONTINUE AS CHIEF EXECUTIVE OFFICER 9309210155 930921 WHO'S NEWS HARTMARX CORP HARTMARX CORP CHICAGO LARRY LEVY 60 YEARS OLD FORMERLY PRESIDENT OF FIELD BROS A NEW YORKBASED RETAIL CHAIN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KUPPENHEIMER MANUFACTURING CO A UNIT OF THIS MAKER OF MEN'S AND WOMEN'S APPAREL HE SUCCEEDS DAVID R MCMAHON 56 WHO RESIGNED 9309210154 930921 COMMODITIES US COPPER FUTURES PRICES CONTINUE TO DECLINE AS LONDON REINS IN ARTIFICIAL SUPPORT STRATEGY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US COPPER FUTURES PRICES CONTINUED TO SKID AFTER THE LONDON METALS EXCHANGE TOOK STEPS TO ELIMINATE A PRICE DISCREPANCY BETWEEN NEARTERM AND FARTERM FUTURES CONTRACTS THAT HAD BEEN ARTIFICIALLY SUPPORTING THE MARKET AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR DECEMBER DELIVERY FELL 16 CENTS TO 7705 CENTS A POUND SINCE THURSDAY THE PRICE OF THE ACTIVELY TRADED DECEMBER CONTRACT HAS PLUNGED MORE THAN 7 FROM A HIGH OF 8296 CENTS AT THE LONDON EXCHANGE RUMORS HAVE CIRCULATED FOR MONTHS THAT A BIG TRADING CONCERN IN THE FAR EAST HAS BEEN BUYING NEARTERM FUTURES CONTRACTS AND SELLING THE DECEMBER CONTRACT THIS STRATEGY ANALYSTS SAID CREATES A PRICE DISCREPANCY BETWEEN NEARTERM AND FARTERM CONTRACTS THAT TENDS TO SUPPORT PRICES IN THE COPPER BUSINESS SUCH ARTIFICIAL SUPPORT IS CALLED BACKWARDIZATION LAST WEEK HOWEVER THE LONDON EXCHANGE IMPOSED A 5 LIMIT ON THE DISCREPANCY BETWEEN THE NEARTERM CONTRACT PRICE AND THE FARTERM PRICE ANALYSTS SAID THAT ALLOWED NEGATIVE SUPPLYANDDEMAND FACTORS FINALLY TO EXERT THEMSELVES WORLD SUPPLYDEMAND FUNDAMENTALS HAVE BEEN EXTREMELY BEARISH FOR SOME TIME SAID BERNARD SAVAIKO COPPER ANALYST FOR PAINEWEBBER INC THEY INCLUDE THE WEAKNESS OF THE GLOBAL ECONOMY NEW MINE OUTPUT THAT HAS BEEN STEADY TO HIGHER AND LARGE COPPER STOCKS IN LONDON WAREHOUSES APPROVED LONDON EXCHANGE WAREHOUSES HAVE COPPER STOCKS OF ABOUT 534000 TONS A 16YEAR HIGH WHICH ARE LIKELY TO CONTINUE TO INCREASE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH COPPER FUTURES PRICES HIT A HIGH OF 108 A POUND IN JANUARY AND HAVE SINCE WORKED THEIR WAY LOWER LARGELY BECAUSE OF THESE WEAK SUPPLYANDDEMAND FACTORS YET THE MARKET FAILED TO FALL AS FAR OR AS FAST AS MOST TRADERS HAD EXPECTED BECAUSE OF THE ARTIFICIAL SUPPORT OF BACKWARDIZATION AFTER THE LONDON EXCHANGE IMPOSED ITS LIMIT ON BACKWARDIZATION PRICES COLLAPSED LAST WEEK THE DECEMBER CONTRACT PRICE FELL THROUGH THE 82CENTSAPOUND LEVEL WHICH IT HAD RESISTED BREACHING FOR WEEKS NOW ANALYSTS EXPECT THE CONTRACT PRICE TO CONTINUE TAPERING OFF BUT PROBABLY IN FITS AND STARTS RATHER THAN MOVING STRAIGHT DOWN I SUSPECT IT COULD BE RATHER CHOPPY JUST BECAUSE OF THE WAY IT'S BEEN BEHAVING LATELY MR SAVAIKO SAID IT HAS MORE LIVES THAN A CAT IN COMING WEEKS THE CONTRACT PRICE IS LIKELY TO SETTLE IN THE RANGE OF 65 CENTS TO 70 CENTS A POUND WHICH IS SLIGHTLY HIGHER THAN THE COST OF COPPER MINING AND PRODUCTION IN THE US ANALYSTS SAID IN OTHER COMMODITY MARKETS YESTERDAY LUMBER LUMBER FUTURES PRICES ROSE THE DAILY PRICEMOVEMENT LIMIT FOR THE SECOND CONSECUTIVE TRADING SESSION AFTER THE COMMERCE DEPARTMENT PROPOSED RAISING THE TARIFF ON CANADIAN LUMBER TO 1154 FROM 651 AT THE CHICAGO MERCANTILE EXCHANGE THE ACTIVELY TRADED NOVEMBER CONTRACT WAS UP 10 TO SETTLE AT 32670 PER THOUSAND BOARD FEET CANADA'S COMMERCE SECRETARY HAS PROTESTED THE PROPOSAL WHICH AIMS TO PREVENT DUMPING OF CANADIAN LUMBER ON THE US MARKET THE COMMERCE DEPARTMENT WILL REVIEW THE CANADIAN OFFICIAL'S PROTEST AND RENDER A DECISION IN A FEW WEEKS IF APPROVED BY THE CLINTON ADMINISTRATION THE INCREASE WOULD TAKE EFFECT DEC 16 ENERGY PETROLEUM FUTURES PRICES SURGED AS TRADERS PREPARED FOR THE MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHICH OPENS SATURDAY IN GENEVA THE OCTOBER CRUDE CONTRACT WHICH EXPIRES TODAY ON THE NEW YORK MERCANTILE EXCHANGE JUMPED 63 CENTS A BARREL TO SETTLE AT 1770 CRUDE FOR NOVEMBER DELIVERY WAS UP 56 CENTS TO 1793 SOME TRADERS SAID OILMARKET PARTICIPANTS WERE COVERING THEIR POSITIONS AHEAD OF THE SATURDAY OPEC MEETING AFTER THE WALL STREET JOURNAL REPORTED YESTERDAY THAT SOME ANALYSTS EXPECT OIL PRICES TO RISE BECAUSE OF IMPROVING SUPPLYDEMAND FUNDAMENTALS TECHNICAL FACTORS ALSO CONTRIBUTED TO THE SURGE AS RISING FUTURES BROKE THROUGH PSYCHOLOGICALLY IMPORTANT PRICING LEVELS IN LATER TRADING A SURPRISING HEATINGOIL RALLY PROVIDED FURTHER FUTURES BUYING OCTOBER HEATING OIL ROSE 181 CENTS A GALLON TO 5373 CENTS 9309210153 930921 MATRIX PHARMACEUTICAL INC MENLO PARK CALIF MATRIX PHARMACEUTICAL INC SAID IT LEASED A FACILITY IN MILPITAS CALIF IN A NEWS RELEASE THE COMPANY SAID THE 10000SQUAREFOOT FACILITY WILL BE USED FOR SHIPPING AND RECEIVING AND UPON STATE LICENSING WILL BE THE PRIMARY LOCATION FOR PACKAGING AND LABELING OF THE COMPANY'S CLINICAL SUPPLIES 9309210152 930921 INTERNATIONAL TOSHIBA AFFILIATES TO MERGE TOKYO TOSHIBA CORP SAID TWO AFFILIATES WILL MERGE OCT 1 TEC ELECTRONICS CORP WILL BE FOLDED INTO TOKYO ELECTRIC CO WITH ONE SHARE OF TEC AND ONE SHARE OF TOKYO ELECTRIC HOLDING EQUAL VALUE BOTH TOKYO ELECTRIC AND TEC ARE LISTED ON THE FIRST SECTION OF THE TOKYO STOCK EXCHANGE AND HAVE BEEN POSTING LOSSES TOSHIBA HAS A 51 STAKE IN TOKYO ELECTRIC WHICH IN TURN HOLDS 51 OF TEC'S STOCK TOKYO ELECTRIC MAKES ELECTRONIC POINTOFSALE SYSTEMS TEC ESSENTIALLY IS ITS MARKETING ARM 9309210151 930921 ASEA BROWN BOVERI SETS VENTURE ZURICH ABB ASEA BROWN BOVERI AG THE GIANT SWISSSWEDISH HEAVY ENGINEERING GROUP FORMED A VENTURE WITH SCIENTIFIC & PRODUCTION ASSOCIATION SATURN OF RUSSIA TO SUPPLY COMPONENTS FOR POWER GENERATION EQUIPMENT THE NEW COMPANY JOINT VENTURE ABB UNITURBO IS 80OWNED BY ABB AND 20OWNED BY SATURN A RUSSIAN HIGHTECHNOLOGY COMPANY SPECIALIZING IN JET ENGINE DEVELOPMENT ABB DECLINED TO DISCLOSE THE AMOUNT OF ITS INVESTMENT IN THE MOSCOWBASED VENTURE 9309210150 930921 BICC UNIT GETS CON EDISON JOB WEST NYACK NY BICC CABLES CORP SAID ONE OF ITS UNITS WON A THREEYEAR 74 MILLION CONTRACT TO SUPPLY CABLE PRODUCTS TO CONSOLIDATED EDISON CO OF NEW YORK CABLEC UTILITY CABLE CO WILL SUPPLY THE ELECTRIC GAS AND STEAM UTILITY COMPANY WITH NETWORK AND DISTRIBUTION CABLE AS WELL AS CONSULTING SERVICES A TWOYEAR 40 MILLION CONTRACT BETWEEN CABLEC AND CON EDISON EXPIRES IN DECEMBER BICC CABLES CORP NORTH AMERICA IS A UNIT OF BICC GROUP LONDON 9309210148 930921 TECHNOLOGY FOREST LABORATORIES' FLU DRUG NEW YORK FOREST LABORATORIES INC SAID IT RECEIVED US APPROVAL TO MARKET FLUMADINE ITS NEW ANTIVIRAL DRUG THE COMPANY SAID SHIPMENTS OF FLUMADINE WHICH WAS APPROVED FOR THE PREVENTION AND TREATMENT OF INFLUENZA A WILL BEGIN THIS MONTH A SPOKESMAN SAID THE NEW DRUG'S CONTRIBUTION TO SALES WILL DEPEND ON THE TYPE AND EXTENT OF INFLUENZA PREVALENT THIS FLU SEASON WHICH GENERALLY RUNS FROM OCTOBER THROUGH MAY 9309210147 930921 BUSINESS BRIEF CHASE MANHATTAN'S SALE OF REAL ESTATE BRINGS 400 MILLION ABOVE EXPECTATIONS NEW YORK CHASE MANHATTAN CORP SOLD A PACKAGE OF DISTRESSED COMMERCIAL REAL ESTATE ASSETS LAST WEEK FOR NEARLY 400 MILLION OR ABOUT 55 OF ITS ORIGINAL VALUE AND MORE THAN IT HAD EXPECTED CHASE WROTE DOWN 2 BILLION IN PROBLEM LOANS AND FORECLOSED PROPERTIES EARLIER THIS YEAR TO 39 OF ORIGINAL VALUE IN A STRATEGY TO UNLOAD BAD ASSETS BECAUSE LAST WEEK'S SALES NETTED MORE THAN CHASE EXPECTED THE BANK WILL BOOK A GAIN ON THEM PEOPLE FAMILIAR WITH THE TRANSACTION SAY A CHASE SPOKESMAN CONFIRMED THAT IT COMPLETED A BULK SALE OF ASSETS THAT WERE VALUED AT 725 MILLION ON THE BANK'S BOOKS AND DECLINED TO COMMENT FURTHER IN A SEALEDBID AUCTION THE LOANS AND PROPERTIES WERE PURCHASED IN SEVEN POOLS BY LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO COLONY CAPITAL INC A LOS ANGELESBASED REAL ESTATE INVESTMENT FIRM AND ALDRICH EASTMAN & WALTCH A BOSTON REAL ESTATE FIRM THE FIRMS HAVE BEEN ACTIVE IN THE MARKET FOR DISTRESSED REAL ESTATE COLONY DECLINED TO COMMENT THE OTHER FIRMS COULDN'T BE REACHED THE STRONGERTHANEXPECTED PRICES REFLECT THE INCREASED COMPETITION FOR POOLS OF NONPERFORMING LOANS AND FORECLOSED PROPERTIES ON THE BOOKS OF FINANCIAL INSTITUTIONS JUST LAST WEEK TRAVELERS CORP SOLD 634 MILLION IN REAL ESTATE TO A REAL ESTATE INVESTMENT FUND SET UP BY FINANCIER GEORGE SOROS THAT FOLLOWED LARGE SALES OF DISTRESSED PROPERTIES BY FIRST CHICAGO CORP NATIONSBANK CORP AND BANKAMERICA CORP THE MARKET IS SATURATED WITH CAPITAL CHASING THIS STUFF SAID ONE UNSUCCESSFUL BIDDER FOR THE CHASE PROPERTIES THE BEST DEALS ARE GONE THE MARKET IS VERY GOOD FOR SELLERS CHASE HAS SOLD ABOUT HALF ITS ORIGINAL 2 BILLION PORTFOLIO IT HAD EARMARKED WHICH PUTS CHASE AHEAD OF ITS SCHEDULE 9309210146 930921 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK CHRISTOS M COSTAKOS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NIELSEN INTERNATIONAL A UNIT OF THIS COMPANY'S AC NIELSEN MARKET RESEARCH FIRM PRIOR TO ASSUMING THE NEWLY CREATED POSITION MR COTSAKOS 66 YEARS OLD PRESIDED OVER THE FIRM'S GROWING ACTIVITIES IN EUROPE NIELSEN TRACKS RETAILSECTOR DEVELOPMENTS IN 20 WESTERN EUROPEAN COUNTRIES AND RECENTLY BEGAN TO COVER FOUR EMERGING MARKETS IN CENTRAL EUROPE MR COTSAKOS PLANS TO SHIFT SOME OF NIELSEN INTERNATIONAL'S STRUCTURE TO TAKE ADVANTAGE OF GROWING EUROPEAN MARKET CONTINUITY NIELSEN EMPLOYS 12000 PEOPLE IN 30 COUNTRIES AND GENERATES 60 OF ITS REVENUE OUTSIDE ITS US HOME MARKET DUN & BRADSTREET CORP SAID THAT CHRISTOS M COSTAKOS NEWLY APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS NIELSEN INTERNATIONAL UNIT IS 45 YEARS OLD AN ITEM IN YESTERDAY'S WHO'S NEWS COLUMN INCORRECTLY STATED THAT MR COSTAKOS IS 66 9309210145 930921 WHO'S NEWS HICKOK ELECTRICAL INSTRUMENT CO HICKOK ELECTRICAL INSTRUMENT CO CLEVELAND EUGENE T NOWAKOWSKI 49 YEARS OLD WAS NAMED VICE PRESIDENT FINANCE OF THIS MAKER OF AUTOMOTIVE DIAGNOSTIC INSTRUMENTS AND TRAINING PROGRAMS AND HIGHTECH INDICATING INSTRUMENTS FOR AIRCRAFT MR NOWAKOWSKI PREVIOUSLY WAS VICE PRESIDENT AND A LOAN OFFICER OF HUNTINGTON BANCSHARES INC'S HUNTINGTON NATIONAL BANK HE SUCCEEDS ROBERT L PURCELL WHO DIED JUNE 26 ADDITIONALLY THREE HICKOK EXECUTIVES WERE GIVEN THE ADDED TITLE OF VICE PRESIDENT WILLIAM A BRUNER 50 WHO IS IN CHARGE OF THE COMPANY'S GREENWOOD MISS MANUFACTURING OPERATIONS GARY M DENOMME 32 WHO RUNS THE COMPANY'S MICHIGAN OPERATIONS AND ROBERT C FIORILLE 57 WHO HEADS THE INDICATOR PRODUCTS DIVISION 9309210144 930921 CREDIT RATINGS FREMONT GENERAL CORP SANTA MONICA CALIF MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON THIS FINANCIAL SERVICES COMPANY'S 575 MILLION SUBORDINATED DEBT ISSUE TO BA3 FROM SINGLEB2 IT ALSO ASSIGNED A BA2 RATING TO FREMONT'S PLANNED SUBORDINATED ISSUE OF LIQUID YIELD OPTION NOTES DUE 2013 MOODY'S SAID THE RATINGS REFLECT FREMONT'S IMPROVING PROFITABILITY AND BALANCE SHEET WHICH WAS BOLSTERED BY A STOCK OFFERING IN JUNE FREMONT BENEFITS FROM A SOLID POSITION IN THE CALIFORNIA WORKERS' COMPENSATION MARKET MOODY'S SAID HOWEVER THAT MARKET WILL BE CHALLENGED BY CONTINUING REGULATORY REFORM IN CALIFORNIA AND POTENTIALLY BY NATIONAL HEALTH CARE REFORM FREMONT'S FINANCIAL LEVERAGE AND DEBT SERVICE COVERAGE ARE STILL SOMEWHAT AGGRESSIVE MOODY'S SAID 9309210143 930921 WHO'S NEWS FLEET MORTGAGE GROUP INC FLEET MORTGAGE GROUP INC COLUMBIA SC W WHITLEY HAWKINS 61 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MORTGAGE ORIGINATOR AND SERVICING CONCERN EXPANDING BOARD MEMBERSHIP TO EIGHT MR HAWKINS RECENTLY RETIRED AS PRESIDENT AND CHIEF OPERATING OFFICER OF DELTA AIR LINES 9309210142 930921 WHO'S NEWS NEW IMAGE CHAIRMAN RESIGNS SELLS 4 STAKE CANOGA PARK CALIF NEW IMAGE INDUSTRIES INC SAID ROBERT H GUREVITCH CHAIRMAN CHIEF EXECUTIVE OFFICER AND A SHAREHOLDER RESIGNED AND SOLD HIS 4 STAKE IN THE COMPANY MR GUREVITCH 52 YEARS OLD SAID HE TOOK THE ACTIONS TOGETHER TO AVOID ANY CONTINUING EFFECT ON THE COMPANY I THOUGHT THE TIMING WAS RIGHT BECAUSE THE COMPANY HAS THE RIGHT MANAGEMENT TEAM IN PLACE TO TAKE IT TO THE NEXT LEVEL ROGER LEDDINGTON THE 48YEAROLD PRESIDENT WAS NAMED TO THE ADDITIONAL POSTS OF CHAIRMAN AND CHIEF EXECUTIVE SUCCEEDING MR GUREVITCH THE DEPARTING EXECUTIVE ALSO RESIGNED FROM THE BOARD REDUCING IT TO FOUR MEMBERS MR GUREVITCH SAID HE SOLD HIS 200000 SHARES YESTERDAY TO INDIVIDUAL INVESTORS AT SLIGHTLY BELOW THE MARKET PRICE SHARES OF THE MAKER OF DENTAL IMAGING EQUIPMENT CLOSED AT 1350 UP 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9309210141 930921 WHO'S NEWS RAWSTEEL OUTPUT FELL 05 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 05 LAST WEEK TO 1833000 TONS FROM 1843000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 106 FROM THE 1657000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 874 OF ITS CAPABILITY LAST WEEK COMPARED WITH 879 THE PREVIOUS WEEK AND 767 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9309210140 930921 INTERNATIONAL LLOYD'S SURVEY SHOWS RISE IN PREMIUM RATES INCOME ON LOWER COSTS SPECIAL TO THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON SAID PREMIUM RATES AND INCOME ROSE DURING THE PAST THREE MONTHS WHILE EXPENSES DECLINED EXTENDING AN IMPROVING TREND AT THE TROUBLED INSURANCE MARKET LLOYD'S SAID A QUARTERLY SURVEY CONDUCTED THIS MONTH OF 25 LEADING UNDERWRITING SYNDICATES SHOWED THAT 89 INCREASED PREMIUM RATES WHILE 2 LOWERED RATES AND 9 LEFT THEM UNCHANGED LOOKING AHEAD 77 EXPECT TO INCREASE RATES IN THE NEXT THREE MONTHS WHILE 2 EXPECT TO CUT RATES AND 21 PLAN TO HOLD THEM STEADY OVERSUPPLY OF UNDERWRITING CAPACITY DURING THE LATE 1980S DEPRESSED PREMIUM RATES AND TOGETHER WITH A STRING OF NATURAL AND MANMADE DISASTERS AND ENVIRONMENTAL CLAIMS LED TO HUGE LOSSES AT LLOYD'S AND FINANCIAL RUIN FOR MANY OF ITS PRIVATE INVESTORS WHO WERE SUBJECT TO UNLIMITED LIABILITY LLOYD'S WHICH ISN'T A COMPANY BUT RATHER A MARKET IN AND OF ITSELF SAID 94 OF THE SYNDICATES IT POLLED REPORTED INCREASED PREMIUM INCOME OVER THE PAST THREE MONTHS AND 88 EXPECT FURTHER INCREASES EXPENSE RATIOS EXPRESSED AS A PERCENTAGE OF PREMIUM INCOME WERE LOWER FOR 58 OF THE 25 SYNDICATES FOR THE NEXT THREE MONTHS 43 EXPECT A FURTHER REDUCTION IN EXPENSES THE DECLINE IN EXPENSES CONTINUED A GENERAL TREND THAT BEGAN IN THE THIRD QUARTER OF 1991 LLOYD'S REPORTS ITS PROFIT AND LOSSES AFTER A LAG OF THREE YEARS IN JUNE IT SAID THE MARKET LOST 292 BILLION 447 BILLION BEFORE TAX IN 1990 ADDING TO LOSSES OF 206 BILLION IN 1989 AND 510 MILLION 7811 MILLION IN 1988 9309210139 930921 HOME LOAN BANK PLANS NEW PRODUCTS FOR ITS MEMBERS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE FEDERAL HOME LOAN BANK SYSTEM PLANS TO EXPAND THE LINE OF FINANCIAL PRODUCTS IT OFFERS TO ITS MEMBERS BUT HAS DECIDED NOT TO GET INTO THE SECURITIZATION BUSINESS UNVEILING A STRATEGIC BLUEPRINT FOR THE FUTURE CALLED SYSTEM 2000 AT A NEWS CONFERENCE HERE SYSTEM OFFICIALS STRESSED THE NEED TO PROVIDE NEW PRODUCTS INCLUDING INSTRUMENTS DESIGNED TO HELP MEMBER INSTITUTIONS PROTECT THEMSELVES AGAINST FINANCIAL RISKS MICHAEL JESSEE PRESIDENT AND CHIEF OPERATING OFFICER OF THE FEDERAL HOME LOAN BANK OF BOSTON SAID PARTICIPANTS IN THE SYSTEMWIDE REVIEW REJECTED THE OPTION OF SEEKING ENTRY INTO THE MORTGAGESECURITIZATION BUSINESS IN WHICH MORTGAGES ARE BOUGHT FROM LENDERS AND PACKAGED INTO SECURITIES THAT ARE THEN SOLD TO INVESTORS SYSTEM OFFICIALS DECIDED THAT THE SECURITIZATION MARKET IS ALREADY WELLSERVED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE FEDERAL HOME LOAN MORTGAGE CORP IN ADDITION STARTUP COSTS WOULD BE ENORMOUS AND THE HOME LOAN BANKS WOULD NEED CONGRESSIONAL AUTHORIZATION TO ENTER THE BUSINESS THE 12 FEDERAL HOME LOAN BANKS ARE GOVERNMENTSPONSORED ENTERPRISES WHOSE MISSION IS TO FACILITATE THE EXTENSION OF CREDIT TO HOUSING THE BANKS PROVIDE ADVANCES OR LOWINTEREST LOANS TO 4000 MEMBER INSTITUTIONS WHICH NOW INCLUDE BANKS AND CREDIT UNIONS AS WELL AS THE TRADITIONAL SAVINGS AND LOANS THE BANKS RAISE MONEY FOR ADVANCES TO MEMBER INSTITUTIONS BY SELLING BONDS IN THE CAPITAL MARKETS THE SYSTEM CAN RAISE MONEY RELATIVELY CHEAPLY BECAUSE ITS DEBT CARRIES AN IMPLICIT FEDERAL GUARANTEE THE SYSTEM'S EMPHASIS ON NEW PRODUCTS IS EXPECTED TO BUILD ON INNOVATIONS NOW COMING ON LINE TO HELP MEMBERS DEAL WITH FINANCIAL RISK SUCH AS PREPAYMENT HEDGES ON CALL ADVANCES AND LETTERS OF CREDIT MR JESSEE CITED THE EVOLUTION OF DEBTMARKET TOOLS INCLUDING SOCALLED DERIVATIVE INSTRUMENTS IN ALLUDING TO WIDERANGING FUTURE POSSIBILITIES OFFICIALS STRESSED THE NEED FOR ANY NEW PRODUCTS TO BE CONSISTENT WITH FINANCIAL SAFETY AND SOUNDNESS THE STRATEGIC PLAN ALSO CALLS FOR THE HOME LOAN BANKS TO TRY TO MAKE ITS MEMBER BORROWING BASE AS BROAD AS POSSIBLE THE SYSTEM CURRENTLY MAKES THE BULK OF ITS ADVANCES TO A RELATIVELY SMALL HANDFUL OF LARGER MEMBER INSTITUTIONS THE PLAN ALSO CITES A NEED TO EDUCATE THRIFT AND BANK REGULATORS AT THE STATE AND FEDERAL LEVEL OF THE BENEFITS OF JOINING THE SYSTEM DANIEL EVANS CHAIRMAN OF THE FEDERAL HOUSING FINANCE BOARD WHICH OVERSEES THE SYSTEM ACKNOWLEDGED CHANCES ARE SLIM THAT THE SYSTEM THIS YEAR WILL REALIZE ITS TOP LEGISLATIVE GOAL WINNING RELIEF FROM A STATUTORY REQUIREMENT THAT IT PROVIDE 300 MILLION A YEAR TO HELP SERVICE 30 BILLION OF OFFBUDGET THRIFT BAILOUT BONDS SOLD BY THE RESOLUTION FUNDING CORP THIS MANDATE WORKS AGAINST THE COUNTERCYCLICAL NATURE OF THE BANK SYSTEM THAT HAS BEEN ITS HALLMARK SINCE ITS INCEPTION THE SYSTEM'S STRATEGIC BLUEPRINT SAID ON ANOTHER FRONT MR EVANS SAID HE HAS NO INTEREST IN HEADING THE BOARD PAST THIS YEAR EVEN THOUGH HIS TERM AS CHAIRMAN RUNS UNTIL 1999 BOARD MEMBERSHIP BECOMES A FULLTIME JOB AS OPPOSED TO ITS PRESENT PARTTIME STRUCTURE AT THE START OF NEXT YEAR 9309210138 930921 WHO'S NEWS GENERAL MILLS INC GENERAL MILLS INC MINNEAPOLIS ME TED CUSHMORE 53 YEARS OLD PRESIDENT OF THIS FOOD AND RESTAURANT CONCERN'S GOLD MEDAL DIVISION AND JEFFREY ROTSCH 43 PRESIDENT OF THE BETTY CROCKER PRODUCTS DIVISION WERE ELECTED SENIOR VICE PRESIDENTS BOTH NEWLY CREATED POSITIONS AT GENERAL MILLS 9309210137 930921 LEISURE & ARTS ON SPORTS CARNEY PUTS THE FOOT BACK IN FOOTBALL BY FREDERICK C KLEIN SAN DIEGO THE SAN DIEGO CHARGERS HAVE PUT THE FOOT BACK IN FOOTBALL AND THEIR FANS ARE GETTING A KICK OUT OF IT THEIR JOHN CARNEY AN ORDINARYSIZED YOUNG MAN WITH THINNING HAIR KICKED SIX FIELD GOALS BEFORE A LARGE AND DELIGHTED THRONG HERE SUNDAY THEY WERE WORTH ONE POINT MORE THAN AN ENTIRE SQUAD OF HOUSTON OILER BEHEMOTHS COULD MANAGE FOR THOSE WITHOUT A CALCULATOR THE FINAL SCORE WAS 1817 CHARGERS AND IF THE HOME TEAM'S TALLY LOOKS FAMILIAR IT SHOULD TWO WEEKS AGO IN THEIR OPENER THE CHARGERS ALSO TOTALED 18 POINTS ALSO ALL ON CARNEY FIELD GOALS IN BEATING SEATTLE BY SIX IN BETWEEN THEY GOT SERIOUSLY BOPPED BY THE BRONCOS AT DENVER BUT THEIR 21 WONLOST MARK IN THIS YOUNG NATIONAL FOOTBALL LEAGUE SEASON FELT JUST FINE THANKS HOW ABOUT SCORING SOME TOUCHDOWNS ONE OF THESE DAYS CHARGER COACH BOBBY ROSS WAS ASKED AFTERWARD YOU DON'T WORRY ABOUT THAT WHEN YOU WIN HE REPLIED WHAT ABOUT YOU MR CARNEY WEREN'T YOU A BIT LEG WEARY LINING UP YOUR GAMEWINNER FROM 27 YARDS WITH SEVEN SECONDS LEFT I WAS HOPING WE'D GET A TD SO I COULD KICK A NICE EXTRA POINT BUT THINGS TURNED OUT FINE ANYWAY THERE WAS MORE TO THE GAME THAN FIELD GOALS CON CARNEY OF COURSE THESE WERE TWO TEAMS WHO OFF THEIR 1992 LOGS PROMISE TO BE AROUND WHEN THE NEXT PLAYOFF TIME STARTS AND MAYBE ONE COULD STILL BE THERE WHEN IT ENDS BOTH BOAST FORMIDABLE TROOPS IN TERMS OF BOTH QUALITY AND QUANTITY AS IT TURNED OUT THE LATTER ATTRIBUTE WOULD BE MOST IMPORTANT ON SUNDAY THE CHARGERS ENTERED THE SEASON WITH THEIR CHESTS PUFFED FROM LAST YEAR'S 126 MARK FIRST AMERICAN CONFERENCE WEST TITLE IN 11 YEARS AND FIRST PLAYOFF BERTH IN 10 THEIR OFFENSIVE LEADER WAS QUARTERBACK STAN HUMPHRIES WHO'D PLAYED NARY A DOWN FOR THE WASHINGTON REDSKINS THE YEAR BEFORE BUT WAS PRESSED INTO STARTING SERVICE AFTER COMING TO SUNNY SOUTHERN CALIFORNIA IN TRADE FOR RELATIVELY LITTLE HE DID SO WELL HE WAS NAMED A PRO BOWL ALTERNATE AND I'M NOT TALKING TENPINS THE OILERS' SUCCESS HAS BEEN OF LONGER STANDINGPLAYOFF APPEARANCES IN SIX STRAIGHT CAMPAIGNS UNDER THE DEFT GENERALSHIP OF QB WARREN MOON BUT THEIR RECENT MEMORIES WEREN'T QUITE SO ROSY THAT'S BECAUSE WITH TITLETOURNEY ADVANCEMENT SEEMINGLY ASSURED AGAINST THE BUFFALO BILLS ON A MEMORABLE JAN 3 LAST THEY TURNED A 353 LEAD INTO A 3841 LOSS THE UPSHOT OF THAT DEBACLE WAS THE ARRIVAL IN HOUSTON OF CLAUDE BUDDY RYAN AS CHIEF DEFENSIVE AIDE TO COACH JACK PARDEE SOME OPINED THAT HIRING THE BLUNTSPOKEN RYAN AN EXPHILADELPHIA EAGLES HEAD MAN AS AN ASSISTANT WAS LIKE HIRING A CAT TO BABYSIT A CANARY AND HE HAS DONE LITTLE TO UNDERMINE THAT COMPARISON HIS DEFENSIVE GANG'S FIRST TARGET IN SUMMER DRILLS WAS HIS OWN TEAM'S OFFENSE AND IN THE UNDECLARED WAR OF WORDS WITH HIS NOMINAL BOSS HE'S ENLISTED BOTH A LOCAL RADIO AND TV SHOW OF HIS OWN SO THOROUGHLY HAS THE BUDDY SYSTEM PERMEATED FOOTBALL'S CONSCIOUSNESS THAT FOES HAVE COME TO REGARD THE OILER DEFENSE AS A HE NOT A THEM QUOTH HUMPHRIES BEFORE THE GAME HE WANTS TO DRAW FEAR INTO THE MINDS OF SOME GUYS HE DOESN'T REALLY CARE SOMETIMES WHAT KIND OF PLAYS YOU MAKE AS LONG AS HE GETS THE HITS THE FEROCIOUS HE OF COURSE IS BARRELSHAPED BUDDY NOT ANY OF HIS MEN IN PADS BUT SUNDAY'S GAME SHOWED THAT THINGS DON'T ALWAYS GO AS PLANNED EVEN BY RYAN DEFENSIVE FEROCITY AS WELL AS OPPORTUNISM WERE SUPPLIED MOSTLY BY THE CHARGERS WHILE SUBSTITUTE QUARTERBACKS WOUND UP GUIDING BOTH OFFENSES AS THEIR PRESUMED BETTERS LOOKED ON THE REASON I'M HERE IS A SITUATION LIKE TODAY'S NOTED TALL JOHN FRIESZ WHO REPLACING THE FLOUNDERING HUMPHRIES MIDWAY THROUGH THE THIRD QUARTER LED THE CHARGERS' LAST THREE SCORING DRIVES IT WAS FRIESZ'S KNEE INJURY LAST SEASON THAT HAD ELEVATED HUMPHRIES TO STARTER THE KIND OF CONTEST IT WOULD BE WAS APPARENT NEARLY FROM THE OUTSET ON HOUSTON'S SECOND POSSESSION A PASS BY THE USUALLY PRECISE MOON WHOSE CAREER INTERCEPTIONS RATE IS ABOUT 3 WAS PICKED OFF BY SAN DIEGO DEFENSIVE BACK DARREN CARRINGTON THE CHARGERS DROVE TO A FIRST DOWN ON THE OILERS' 17YARD LINE BUT THEIR NEXT THREE PLAYS NETTED BUT TWO MORE YARDS AND THEY HAD TO SETTLE FOR A CARNEY FIELD GOAL BEFORE THE FIRST HALF WAS OUT A HOUSTON FUMBLE AND AN INTERCEPTION WOULD LEAD TO OTHER FIELD GOALS BEFORE THE FOURTH QUARTER WAS OUT MOON WOULD HIMSELF BE REPLACED BY HIS BACKUP CODY CARLSON AFTER THROWING HIS FOURTH INTERCEPTION OF THE AFTERNOON IN 43 THROWS CARLSON DID ALL RIGHT COMPLETING FOUR OF SIX PASSES SANS INTERCEPTIONS IN THE DRIVE THAT SET UP THE AL DEL GRECO FIELD GOAL THAT PUT HOUSTON AHEAD 1715 WITH FIVE MINUTES LEFT BUT SAN DIEGO BEHIND FRIESZ HAD ONE MORE SHOT AND MADE IT COUNT BEGINNING ON HIS OWN 16YARD LINE THE UNIVERSITY OF IDAHO PRODUCT MOVED HIS TEAM TO THE HOUSTON 29 IN SEVEN PLAYS FIVE OF THEM PASSES ONCE THERE WITH TWO MINUTES LEFT THE CHARGERS ESCHEWED GRANDER GOALS AND CONCENTRATED ON RUNNING OUT THE CLOCK SO NO TIME WOULD REMAIN AFTER CARNEY'S FINAL FIELDGOAL TRY THEY DID THIS BY HANDING THE BALL FIVE TIMES TO LARGE RUNNING BACK MARION BUTTS WHO PROTECTED SAME WITH BOTH OF HIS OWN CARNEY'S BOOT SAILED TRUE AND THAT WAS THAT IT WAS THE 29TH FIELD GOAL WITHOUT A MISS FOR THE NOTRE DAMER DATING FROM LAST SEASON THAT'S AN NFL RECORD HIS SIX ON SUNDAY WERE FROM DISTANCES OF 34 34 27 27 36 AND 27 YARDS BEAMING WINNING COACH ROSS LATER SAID THE GAME WAS ROCK 'EM SOCK 'EM REALLY INTENSE DEJECTED LOSING HEAD COACH PARDEE WHOSE TEAM DROPPED TO A WONLOST 12 CALLED IT FRUSTRATING LOSING DEFENSIVE COACH RYAN AS USUAL GOT THE LAST WORD I DON'T KNOW HOW THEY DROVE 85 YARDS AT THE END IT WAS 75 ALL DAY LONG THEY COULDN'T DRIVE FIVE YARDS HE FUMED WERE SOME OF HIS PLAYERS RECEIVING INTRAVENOUS FLUIDS BECAUSE OF THE 88DEGREE HEAT HELL THEY ALL OUGHTA BE ON IVS THIS OUGHTA GET BETTER THE SEASON'S ONLY THREE GAMES OLD 9309210136 930921 ENTERPRISE BUSINESS GIANTS HOPE TO SCORE BIG BY LOOKING SMALL LITTLE COMPANIES ARE GETTING RENEWED ATTENTION AS ECONOMY STABILIZES BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL BIG BUSINESS'S COURTSHIP WITH THE SMALLBUSINESS CUSTOMER IS TURNING ARDENT OFFICE DEPOT INC RECENTLY BEGAN PRINTING PERSONALIZED BANK CHECKS AND BUSINESS FORMS FOR ITS SMALLBUSINESS CUSTOMERS AND SELLING THEM DUN & BRADSTREET CORP MAILING LISTS AND CREDIT REPORTS THE NATIONAL OPERATOR OF OFFICESUPPLY SUPERSTORES ALSO LAUNCHED TWO QUARTERLY SMALLBUSINESS MAGAZINES WE'RE TRYING TO DO EVERYTHING WE CAN DO TO HELP OUT SMALLBUSINESS CUSTOMERS SAYS A COMPANY SPOKESMAN AND IN 1992 MCI COMMUNICATIONS CORP CREATED A DIVISION DEVOTED SOLELY TO SERVING SMALL COMPANIES SMALL BUSINESS REPRESENTS TOMORROW'S BUSINESS SAYS TIMOTHY PRICE PRESIDENT OF MCI BUSINESS SERVICES WHICH OVERSEES THE TELECOMMUNICATIONS CONCERN'S NEW DIVISION ENCOURAGED BY A STEADYING ECONOMY BIG COMPANIES ARE STEPPING UP THEIR EFFORTS TO WOO SMALL BUSINESSES ATTENTION TO SMALL CUSTOMERS DETERIORATED DURING THE RECESSION AS CORPORATIONS CUT COSTS AND FOCUSED THEIR REMAINING CUSTOMERSERVICE RESOURCES ON LARGER ACCOUNTS MARKETING EXECUTIVES AND CONSULTANTS SAY NOW THAT ECONOMIC CONDITIONS HAVE STABILIZED MANY BIG COMPANIES ARE RENEWING ATTEMPTS TO TAP THE SMALLBUSINESS MARKET WE'RE NOTICING THAT BIG COMPANIES ARE MORE INTERESTED IN MAKING SURE WHAT THEY DO HELPS RETAIN THEIR SMALL CUSTOMERS NOT JUST THEIR LARGEST ONES SAYS RONALD ZEMKE PRESIDENT OF PERFORMANCE RESEARCH ASSOCIATES INC A CUSTOMERSERVICE CONSULTING FIRM IN MINNEAPOLIS THIS YEAR THE RATING OF BIGBUSINESS RESPONSIVENESS TO THE NEEDS OF SMALL FIRMS ROSE IN SEVEN OF 11 INDUSTRY CATEGORIES ACCORDING TO A SURVEY OF MORE THAN 500 SMALLBUSINESS OWNERS BY CICCO & ASSOCIATES INC A MURRYVILLE PA CONSULTING FIRM SPECIALIZING IN SMALLBUSINESS MARKETING THAT REPRESENTS A SHARP REVERSAL FROM 1992 WHEN THE RESPONSIVENESS RATING IN NINE OF THE 11 INDUSTRIES DECLINED LIKE MANY OF ITS BIGBUSINESS PEERS AMERICAN EXPRESS LATELY INTRODUCED SEVERAL PRODUCTS OR SERVICES TO REACH SMALL FIRMS THIS YEAR IN COOPERATION WITH UNITED PARCEL SERVICE OF AMERICA INC IT BEGAN OFFERING DISCOUNTS OF AS MUCH AS 20 ON AIRSHIPPING SERVICES TO HOLDERS OF ITS SMALLBUSINESS CORPORATE CARD LAST YEAR EXCLUSIVELY FOR ITS SMALLBUSINESS MEMBERS AMERICAN EXPRESS COMBINED ITS CORPORATE CARD WITH A LONGDISTANCE CALLING CARD ISSUED BY AMERICAN TELEPHONE & TELEGRAPH CO FOR ITS PART AT&T LAST YEAR BEGAN AWARDING CREDITS TO SMALLBUSINESS USERS OF ITS TOLLFREE SERVICES THE CREDITS CAN BE EXCHANGED FOR TRAINING PROGRAMS IN TELEMARKETING COOPERATIVE ADVERTISING OR REPORTS ON THE DEMOGRAPHICS OF INCOMING TOLLFREE CALLS AT&T AND SEVERAL OTHER SPONSORS ALSO LAUNCHED A TOLLFREE EXPORT HOTLINE THAT IS USED MOSTLY BY SMALL BUSINESSES ALL THIS ATTENTION CERTAINLY IMPRESSES GEORGE CIUKURESCU LAST YEAR HIS FAMILYOWNED ASIAN WORLD OF MARTIAL ARTS INC WHICH SELLS MARTIALARTS EQUIPMENT THROUGH CATALOGS PICKED AT&T TO EXPAND ITS PHONE SYSTEM EVEN THOUGH OTHERS OFFERED TO DO THE SAME JOB FOR A LOT LESS MR CIUKURESCU SAYS HE BET ON THE TELECOMMUNICATIONS GIANT'S BLUECHIP REPUTATION AND ITS PLEDGE TO ATTEND PROMPTLY TO ASIAN WORLD'S NEEDS HE WASN'T DISAPPOINTED INSTALLATION OF THE NEW SYSTEM DISRUPTED BUSINESS AT HIS PHILADELPHIA CONCERN FOR ONLY AN HOUR AND AN ENGINEER WAS ON SITE EVERY DAY FOR A WEEK TO WORK OUT ANY BUGS HE SAYS MOST IMPORTANT THE AT&T REPRESENTATIVE WHO SOLD HIM THE SYSTEM HAS STOPPED BY ASIAN WORLD THREE OR FOUR TIMES SINCE THE WORK WAS DONE JUST TO SEE HOW THINGS ARE GOING YOU KNOW YOU'RE DEALING WITH A HUGE CORPORATION MR CIUKURESCU SAYS BUT HE MAKES IT FEEL LIKE THEY'RE LOCAL NORTHERN TELECOM LTD A BIG COMPETITOR OF AT&T'S IN THE TELECOMMUNICATIONSEQUIPMENT BUSINESS APPEARS SIMILARLY DETERMINED TO PROVE ITS LOYALTY TO SMALL COMPANIES TO SIMPLIFY THE PURCHASE OF A SMALLBUSINESS PHONE SYSTEM NORTHERN TELECOM LAST MONTH BEGAN TESTING WITH BELL ATLANTIC CORP A SOCALLED STOREWITHINASTORE RETAIL CONCEPT AT AN OUTLET OWNED BY OFFICE AMERICA INC AT THESE NEW CENTERS A BUSINESS OWNER CAN SELECT BOTH NORTHERN TELECOM HARDWARE AND THE SPECIAL ONLINE SOFTWARE FEATURES SOLD BY BELL ATLANTIC THUS TAILORING HIS BUSINESSPHONE SYSTEM NEEDS IN ONE STOP WITH THE HELP OF A SALESPERSON THE COMPANIES MOREOVER PLEDGE TO HAVE THE SYSTEM RUNNING WITHIN TWO BUSINESS DAYS SOME SMALLBUSINESS OWNERS STILL FEEL SLIGHTED BY BIG COMPANIES OF COURSE EDWARD T LAGONEGRO CHAIRMAN OF ELMIRA TOBACCO CO A WHOLESALE DISTRIBUTOR IN ELMIRA HEIGHTS NY IS ONE OF THEM HE SAYS HE RECENTLY BECAME DISENCHANTED WITH INTERNATIONAL BUSINESS MACHINES CORP AFTER YEARS OF DOING BUSINESS WITH THE COMPUTER GIANT I EXPECT A COMPANY TO CALL ON ME ON A REGULAR BASIS KNOW MY BUSINESS AND RECOMMEND EQUIPMENT TO MAKE ME MORE COMPETITIVE HE SAYS CLAIMING THAT IBM LATELY HAS FAILED TO DO ALL OF THOSE THINGS AS A RESULT HE SAYS HE PLANS TO EXPAND HIS COMPUTER SYSTEM WITH IBMCOMPATIBLE EQUIPMENT RATHER THAN IBM'S THE ONCEPROUD IBM WHICH IS STRUGGLING THROUGH A MASSIVE REORGANIZATION SAYS IT IS STRIVING TO RETAIN THE LOYALTY OF CUSTOMERS SUCH AS MR LAGONEGRO LAST YEAR FOR INSTANCE IT CREATED A 24HOUR TOLLFREE ASSISTANCE LINE FOR ITS SMALL CUSTOMERS WE TAKE CUSTOMER SATISFACTION VERY SERIOUSLY AND HAVE BEEN WORKING HARD TO IMPROVE OUR RESPONSIVENESS SAYS WIRT COOK GENERAL MANAGER OF IBM'S GENERAL BUSINESS AND DISTRIBUTION UNIT WHICH OVERSEES US SMALLBUSINESS MARKETING MR LAGONEGRO'S DISPLEASURE HE ADDS TELLS US WE HAVE SOME WORK TO DO PERCENTAGE OF SMALLBUSINESS OWNERS WHO SINGLED OUT BIG COMPANIES IN THE FOLLOWING INDUSTRIES FOR BEING RESPONSIVE TO THEIR NEEDS 9309210135 930921 CORRECTIONS & AMPLIFICATIONS AN OFFERING OF 53 MILLION TECUMSEH PRODUCTS CO CLASS A SHARES UNDERWRITTEN BY GOLDMAN SACHS & CO IS EXPECTED TO BE PRICED THIS WEEK YESTERDAY'S SECURITIES OFFERING CALENDAR INCORRECTLY LISTED THE SHARES AS CLASS B 9309210134 930921 WHO'S NEWS SEARS ROEBUCK NAMES ARMY'S GEN PAGONIS TO NEW LOGISTICS POST CHICAGO SEARS ROEBUCK & CO SAID IT NAMED ARMY LT GEN WILLIAM G PAGONIS WHO SPEARHEADED LOGISTICAL SUPPORT FOR OPERATION DESERT STORM TO THE NEW POST OF SENIOR VICE PRESIDENT LOGISTICS OF THE SEARS MERCHANDISE GROUP GEN PAGONIS 52 YEARS OLD CURRENTLY IS COMMANDING GENERAL OF THE 21ST THEATER AREA COMMAND OF THE US ARMY IN EUROPE HE IS BASED IN KAISERSLAUTERN GERMANY WHERE HE HAS COMMAND OF ALL LOGISTICAL SUPPORT FOR NORTH ATLANTIC TREATY ORGANIZATION FORCES IN EUROPE THE RETAIL CONCERN SAID GEN PAGONIS'S APPOINTMENT WILL BE EFFECTIVE LATER THIS YEAR PENDING CONGRESSIONAL AND PRESIDENTIAL APPROVAL OF HIS RETIREMENT FROM THE ARMY THEN HE WILL BE NOMINATED FOR ELECTION AS A SENIOR VICE PRESIDENT BY SEARS'S BOARD SEARS SAID GEN PAGONIS WILL BE RESPONSIBLE FOR ALL TRANSPORTATION DISTRIBUTION AND DELIVERY SERVICES INCLUDING SEARS LOGISTICS SERVICES INC SEARS SAID GEN PAGONIS HAS SERVED IN EVERY LOGISTICS COMMAND POSITION FROM PLATOON LEADER THROUGH COMPANY BRIGADE DIVISION SUPPORT AND THEATER ARMY COMMANDS HE ALSO WROTE MOVING MOUNTAINS LESSONS IN LEADERSHIP AND LOGISTICS FROM THE GULF WAR WHICH DISCUSSES ADAPTING MILITARY LOGISTICS IN THE BUSINESS FIELD 9309210133 930921 GM SELECTED AS 2ND TARGET BY UNION IN CANADA FACES MORE CONTRACT WOES BY NEAL TEMPLIN AND ROBERT L SIMISON STAFF REPORTERS OF THE WALL STREET JOURNAL DEARBORN MICH AS AUTOINDUSTRY LABOR TALKS MOVE ON TO CHRYSLER CORP IN THE US AND GENERAL MOTORS CORP IN CANADA THE PROSPECTS FOR UNION HELP IN GM'S NORTH AMERICAN TURNAROUND EFFORT ARE GROWING DIMMER IN BOTH THE US AND CANADA IT'S BECOMING CLEAR THAT AUTO UNIONS ARE FOCUSING SQUARELY ON EXPANDING LAYOFF BENEFITS AND ON ATTACKING THE INDUSTRY TREND OF FARMING PARTSMAKING WORK OUT TO SUPPLIERS THAT AGENDA HITS GM JUST WHERE IT NEEDS TO MAKE THE MOST CHANGE IN TORONTO THE CANADIAN AUTO WORKERS SOMEWHAT SURPRISINGLY CHOSE TO TAKE ON GM NEXT SETTING A SEPT 29 STRIKE DEADLINE THE CAW SETTLED LAST WEEK WITH CHRYSLER ON WHAT IT HOPES TO MAKE AN INDUSTRYPATTERN CONTRACT UNION OFFICIALS SAID THEIR MAIN CONCERNS ARE INCOME SECURITY AND OUTSOURCING OF PARTS AND THE UNITED AUTO WORKERS SAID IT WILL OPEN TALKS TOMORROW WITH CHRYSLER IN THE US AS IT CONTINUES TO SEEK RANKANDFILE RATIFICATION OF ITS TENTATIVE AGREEMENT WITH FORD MOTOR CO UAW LEADERS SAID OUTSOURCING WILL BE A BIG ISSUE WITH CHRYLSER TOO GM OFFICIALS ARE WORRIED THAT EITHER MATCHING THE FORD PACT OR CONFRONTING THE UNION OVER IT WOULD SEVERELY HURT EFFORTS TO TURN THE COMPANY AROUND THEY ARE PARTICULARLY CONCERNED THAT FORD AGREED TO SWEETER PENSIONS AT A TIME WHEN GM ALREADY HAS A 19 BILLION UNFUNDED PENSION LIABILITY IN THE LAST CONTRACT GM AGREED TO LAYOFFBENEFIT PLANS TOTALING 335 BILLION ONE FUND OF 17 BILLION WAS COMPLETELY EXHAUSTED AND ANOTHER FUND OF 165 BILLION IS EXPECTED TO BE MOSTLY USED A GM SPOKESMAN SAID THUS MATCHING FORD'S COMMITMENT TO CONTINUE THE LAYOFF PROGRAMS COULD EASILY COST GM NEARLY 335 BILLION AGAIN WHILE FORD WOULD BE REPLENISHING ITS FUNDS ONLY TO THE TUNE OF THE 581 MILLION THAT WERE USED AND FOR GM TO OFFER A BACKUP FUND PROPORTIONAL TO FORD'S 200 MILLION COULD MEAN AN ADDITIONAL 400 MILLION TO 500 MILLION OVER THE THREEYEAR LIFE OF THE CONTRACT FOR FORD SUCH A COMMITMENT MAY CARRY RELATIVELY LOW RISKS CONSIDERING THAT THE NO 2 AUTO MAKER HAS ALREADY ELIMINATED EXCESS CAPACITY AND IS EXPECTED TO BE DOING MORE HIRING THAN FIRING IN THE NEXT FEW YEARS AT GM THOUGH THE QUESTION OF LAYOFF BENEFITS IS EXPECTED TO ASSUME MUCH GREATER PROPORTIONS THE STRUGGLING NO 1 AUTO MAKER IS LIKELY TO SHED AS MANY AS 90000 US JOBS OVER THE NEXT FEW YEARS ITS TOTAL US EMPLOYMENT IN APRIL THIS YEAR WAS 344000 OF WHOM 267000 WERE HOURLY WORKERS UAW PRESIDENT OWEN BIEBER MADE CLEAR THAT HE AIMS TO HOLD GM TO THE FORD PATTERN INCLUDING THE LAYOFFBENEFIT PROVISIONS AND HE POINTEDLY DISMISSED SPECULATION THAT GM WOULDN'T BE ABLE TO AFFORD IT THIS CONTRACT HERE IS NOT A COMPANY BUSTER BY ANY STRETCH OF THE IMAGINATION HE DECLARED AT THE SAME TIME A SENIOR UNION OFFICIAL WHO HELPED NEGOTIATE THE FORD PACT VERIFIED THAT THE UNION HAD GM IN MIND WHEN IT NEGOTIATED THE JOBLESSBENEFITS PACKAGE WITH FORD IT'S NOT FOR US THE OFFICIAL SAID POINTING OUT THAT FORD USED ONLY A FRACTION OF ITS JOBLESS FUND UNDERSCORING THE UNION'S SERIOUSNESS ABOUT OUTSOURCING MR BIEBER SAID HE PERSONALLY NEGOTIATED AN AGREEMENT WITH HAROLD A POLING THE CHAIRMAN OF FORD TO KEEP A FORD PARTSMAKING PLANT IN RAWSONVILLE MICH OPEN DURING THE LIFE OF THE CONTRACT THE PACT WHICH EMPLOYS 2000 WORKERS MAKES FUEL INJECTORS WHICH FORD HAD THREATENED TO OUTSOURCE MOREOVER UAW OFFICIALS SET OUTSOURCING AS A LEADING ISSUE FOR THE TALKS AT CHRYSLER UAW VICE PRESIDENT STAN MARSHALL THE UNION'S CHIEF NEGOTIATOR FOR CHRYSLER SAID THE UNION WAS PARTICULARLY DISMAYED OVER THE OUTSOURCING OF AXLEMAKING AND WANTS CHRYSLER TO DISCONTINUE THE PRACTICE IN CANADA CAW PRESIDENT BUZZ HARGROVE EXPRESSED FEARS CONCERNING GM'S PLAN TO SELL ITS 700WORKER AXLE OPERATION AT ST CATHERINE'S ONTARIO TO AMERICAN AXLE & MANUFACTURING AS PART OF A PACKAGE OF PARTS UNITS IT WANTS TO UNLOAD THE AXLE PLANT MUST REMAIN OPEN MR HARGROVE DECLARED HE OBSERVED THAT GM'S JOBLESS FUNDS IN CANADA ARE NEARLY DEPLETED AND SAID THAT IMPROVEMENTS IN INCOME SECURITY PROVISIONS ARE GOING TO COST GM A LOT OF MONEY HE ALSO VOWED THAT THE RICH PACKAGE OF HIGHER WAGES AND PENSIONS AND MORE TIME OFF TO WHICH CHRYSLER AGREED WON'T BE WATERED DOWN FOR GM THE CONTRACT ALSO PROVIDES THAT WORKERS WILL GET A 600 CHRISTMAS BONUS AS THEY DID IN THE PREVIOUS CONTRACT THAT COULD BE ANOTHER SORE POINT FOR GM WHICH IN ITS FINANCIAL STRAITS ASKED WORKERS TO FORGO THE CHRISTMAS BONUS EACH OF THE PAST TWO YEARS ONLY TO BE TURNED DOWN THE UAW DID MAKE CERTAIN CONCESSIONS IN ITS FORD CONTRACT INCLUDING THE PREVIOULY REPORTED PLAN FOR NEWLY HIRED WORKERS TO START AT 70 OF FULL WAGES COMPARED WITH 85 PREVIOUSLY THE UNION ALSO AGREED TO FORGO 32 CENTS AN HOUR IN COSTOFLIVING ADJUSTMENTS DUE WORKERS OVER THE NEXT THREE YEARS UP FROM A SIMILAR DIVERSION OF 28 CENTS AN HOUR IN THE PREVIOUS CONTRACT WHILE THE UNION DOESN'T LIKE TO SAY JUST WHAT THIS IS FOR UNION LEADERS EXPLAIN THAT IT'S A PAINLESS WAY OF SURRENDERING PART OF A WAGE INCREASE TO AVOID CUTBACKS TO SUCH SACROSANCT BENEFITS AS HEALTH CARE MR BIEBER SAID THE NEW PROVISION WHILE HIGHER WILL BE LESS ONEROUS BECAUSE IT WILL BE SPREAD OVER THE ENTIRE THREE YEARS OF THE CONTRACT WHEREAS IN THE OLD AGREEMENT IT WAS FRONTLOADED MARK HEINZL IN TORONTO CONTRIBUTED TO THIS STORY 9309210132 930921 SCIENCE IN THE LAB GORLOV'S DAM PULLS ITS OOMPH OUT OF THIN AIR BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL ONE DAY IN 1971 ALEXANDER SOLZHENITSYN'S CAR BROKE DOWN THUS BEGAN A CHAIN OF EVENTS LEADING TO THE BIRTH OF A NEW ELECTRIC POWER TECHNOLOGY IN A BOSTON LABORATORY MR SOLZHENITSYN WAS ILL SO HE ASKED A FRIEND AN ENGINEER NAMED ALEXANDER GORLOV TO RETRIEVE A SPARE CAR PART AT THE DISSIDENT NOVELIST'S SUMMER COTTAGE NEAR MOSCOW WHEN DR GORLOV ARRIVED HE FOUND STRANGERS RUMMAGING INSIDE THEY BEAT HIM BLOODY GRILLED HIM FOR HOURS AND SENT HIM HOME MR SOLZHENITSYN WITHOUT CONSULTING DR GORLOV PUBLICIZED THE INCIDENT IN THE WESTERN PRESS AS PROBABLE KGB THUGGERY COMRADE GORLOV A QUIET WELLRESPECTED RESEARCH MANAGER WHO HELPED DESIGN EGYPT'S ASWAN HIGH DAM WAS BRANDED AN ANTISOVIET ACTIVIST STATISTICAL ANALYSIS HE SAYS SOON REVEALED THAT APPROXIMATELY HALF HIS ACQUAINTANCES WERE AVOIDING HIM EVENTUALLY HE WAS FIRED FROM HIS JOB AT A MOSCOW RESEARCH INSTITUTE SCRAPING BY ON ODD JOBS HE DAYDREAMED NOT OF FIERY TRACTS BUT OF WATERY ONES A NOVEL HYDROPOWER CONCEPT TOOK SHAPE IN HIS MIND AFTER REFUSING A KGB DEMAND THAT HE SPY ON MR SOLZHENITSYN HE WAS DEPORTED HIRED BY BOSTON'S NORTHEASTERN UNIVERSITY IN 1976 HE ARRIVED WITH TWO SUITCASES OF BOOKS AND HIS NEW IDEA TODAY IN A BASEMENT LAB AT NORTHEASTERN DR GORLOV GESTURES LIKE A MAESTRO OVER A TROUGH FILLED WITH FLOWING WATER PROPELLED BY A BIG PUMP INSIDE IT A PROOFOFCONCEPT MODEL OF HIS IDEA IS PROVING AWAY A STATIONARY SUBMERGED BOX WITH CLEAR PLASTIC SIDES IS TAKING ENERGY FROM THE WATER AND TURNING IT INTO ELECTRICITY ITS HEART CONSISTS OF ADJOINING CHAMBERS WITH LOUVERLIKE DOORS THAT SLOWLY OPEN AND CLOSE LIKE BIG FISH GILLS THE INTERCONNECTED DOORS MOVE IN A SYNCHRONIZED WAY FROM THE FORCE OF WATER AND GRAVITY CAUSING WATER TO CYCLICALLY FILL AND EMPTY THE CHAMBERS THE RISING AND FALLING WATER INSIDE A CHAMBER ACTS AS A PISTON PUSHING OUT AND THEN SUCKING IN AIR THROUGH OPENINGS IN THE CHAMBER ROOF THE RUSHING AIR IS PIPED TO A FANLIKE TURBINE WHICH SPINS AN ELECTRIC GENERATOR IT'S A PRETTY RADICALLY NEW APPROACH TO HYDROPOWER YET VERY SIMPLE SAYS CHAD CLARK A RESEARCH MANAGER AT CENTRAL MAINE POWER CO WHICH PLANS TO BUILD A 100KILOWATT PILOT PLANT BASED ON DR GORLOV'S IDEA NEAR LEWISTON MAINE IN A YEAR OR SO IN THEORY IT REPRESENTS A SMALLISBEAUTIFUL ANSWER TO HYDROPOWER CRITICS WHO SAY BIG DAMS INUNDATE PRECIOUS ECOSYSTEMS KILL FISH AND SPOIL THE LOOK OF WILD RIVERS DR GORLOV SAYS HIS SYSTEM COULD GENERATE POWER AS AN ADDON TO SMALL LOWHEAD DAMS ALREADY IMPLANTED IN RIVERS AND CANALS FOR IRRIGATION FLOOD CONTROL AND OTHER PURPOSES NEW ENGLAND ALONE HAS MORE THAN 10000 SUCH DAMS ENOUGH TO GENERATE AS MUCH POWER AS SEVERAL LARGE NUCLEAR PLANTS WITH THE HELP OF HIS TECHNOLOGY HE ADDS LOWHEAD DAMS OFTEN CREATE A WATER DROP OF ONLY A FEW FEET NOT ENOUGH TO GENERATE ELECTRICITY ECONOMICALLY WITH CONVENTIONAL WATERDRIVEN TURBINES BY CONVERTING WATER TO AIR POWER DR GORLOV'S SYSTEM CAN EMPLOY RECENTLY DEVELOPED AIR TURBINES THAT ARE SMALLER CHEAPER AND EASIER TO INSTALL AND MAINTAIN THAN WATERSPUN ONES HE SAYS THAT PROMISES TO BOOST SMALLSCALE HYDROPOWER OVER THE COSTEFFECTIVENESS HURDLE WITH THIS MACHINE I BELIEVE HYDROPOWER INSTALLATIONS WOULD BE FEASIBLE EVEN FOR INDIVIDUAL HOUSES SAYS DR GORLOV A WHITEHAIRED MAN WHO DAILY PEDALS TWO MILES TO WORK THROUGH BOSTON TRAFFIC ON A BICYCLE WITH A LOUD HORN HE ENVISIONS COMPANIES USING HIS SYSTEMS TO POWER RIVERSIDE PLANTS UTILITIES MIGHT INSTALL LARGER VERSIONS TO ADD NONPOLLUTING GENERATING CAPACITY DEVELOPING COUNTRIES MIGHT PIGGYBACK THEM TO IRRIGATION DAMS THE TECHNOLOGY DOESN'T NECESSARILY REQUIRE A DAM SAYS DR GORLOV WHO PROPOSES HARNESSING TIDAL FLOWS IN ESTUARIES TO GENERATE ELECTRICITY ON ISLANDS LIKE MANY ALTERNATIVE ENERGY PROPONENTS DR GORLOV FOUND HIMSELF PADDLING AGAINST POLITICAL CURRENTS IN THE 1980S UNABLE TO WIN FUNDING HE SWITCHED TO RESEARCH ON WAYS TO FOIL SUICIDE CAR BOMBERS AFTER ONE IN 1983 KILLED 241 US MARINES IN BEIRUT EVENTUALLY HE PATENTED A DEVICE THAT SNARES A TERRORIST'S VEHICLE WITH CABLES ON A PIVOT AND SWINGS IT AROUND TO SLAM INTO BARRIERS WELL AWAY FROM TARGETED STRUCTURES BUT DR GORLOV WHOSE STUBBORNNESS EXASPERATED THE KGB NEVER STOPPED PESTERING US DEPARTMENT OF ENERGY OFFICIALS ABOUT HIS POWER IDEA FOR A NUMBER OF YEARS I INSISTED THEY SUPPORT MY RESEARCH ON IT HE SAYS WITH A STRONG RUSSIAN ACCENT AND FOR YEARS THEY WERE STAUNCH REFUSENIKS IN 1990 HE WAS FINALLY REHABILITATED AS AN ENERGY RESEARCHER WHEN THE DOE AWARDED HIM A TWOYEAR GRANT WITH ADDITIONAL FUNDING FROM CENTRAL MAINE POWER HE BUILT THE LAB PROTOTYPE HYDROPOWER EXPERTS AGREE DR GORLOV'S IDEA HAS AN INTRIGUING DESIGN APPEARS TECHNICALLY FEASIBLE AND PROBABLY WOULD OFFER ENVIRONMENTAL PLUSES BUT THEY SAY IT WON'T NECESSARILY GENERATE ELECTRICITY CHEAPLY ENOUGH TO WARRANT WIDE USE DOUBTS DR GORLOV SAYS CAN ONLY BE RESOLVED BY REALWORLD TESTS LIKE THE ONE PLANNED IN MAINE HL TURNER GROUP INC A CONCORD NH ENGINEERING CONSULTANT ALSO RECENTLY PROPOSED INSTALLING DR GORLOV'S SYSTEM IN MASSACHUSETTS' CAPE COD CANAL AS PART OF A US ARMY CORPS OF ENGINEERS PROJECT AND A JAPANESE COMPANY HAS EXPRESSED INTEREST IN IT FOR ELECTRIFYING DOZENS OF SMALL ISLANDS WITHIN JAPAN'S AMBIT POTENTIALLY OFFSETTING COSTLY OIL SHIPMENTS NEEDED TO RUN GENERATORS DR GORLOV'S IMAGE ALSO HAS BEEN REHABILITATED IN RUSSIA WHERE HE IS RENOWNED AS THE MAN WHO BECAME A COLD WAR HERO TRYING TO FIX A FRIEND'S CLUTCH HE TRAVELED THERE TWICE RECENTLY AS A VISITING LECTURER THE LAST TIME I WAS THERE HE SAYS PROUDLY I GOT A THOUSAND RUBLES A DAY THAT'S MORE THAN THREE TIMES HIS ANNUAL SALARY BEFORE BEING BLACKLISTED AND EQUAL TO ABOUT 1 TODAY 9309210131 930921 MOBLEY ENVIRONMENTAL MAY FACE BAN BY TEXAS ON UNIT'S OPERATIONS KILGORE TEXAS MOBLEY ENVIRONMENTAL SERVICES INC SAID ITS GIBRALTAR CHEMICAL RESOURCES INC UNIT HAS BEEN NOTIFIED THAT THE TEXAS NATURAL RESOURCE CONSERVATION COMMISSION BOARD WILL CONSIDER AN EMERGENCY ORDER BARRING THE UNIT'S WINONA TEXAS WASTE RECOVERY AND DISPOSAL FACILITY FROM RECEIVING WASTE FOR UP TO 90 DAYS GIBRALTAR WHICH ACCOUNTS FOR MORE THAN 50 OF THE WASTEMANAGEMENT CONCERN'S ANNUAL REVENUE HAS BEEN THE SUBJECT OF A LONGRUNNING DISPUTE BETWEEN THE COMPANY AND ENVIRONMENTAL ACTIVISTS AND REGULATORY AGENCIES OVER ITS WINONA OPERATIONS WHICH INCLUDE A HAZARDOUSWASTE INJECTION WELL A WASTEDERIVED FUELS OPERATION AND A SOLVENTRECOVERY OPERATION GLENN LEWIS A SPOKESMAN FOR THE COMMISSION A STATE REGULATORY AGENCY SAID THE FACILITY HAS BEEN CITED FOR VIOLATIONS OF TEXAS ENVIRONMENTAL STATUTES FIVE TIMES SINCE 1990 HE SAID THE PROPOSED BAN STEMS FROM A SEPT 9 INCIDENT ALLEGEDLY INVOLVING INAPPROPRIATE MIXING OF WASTES AND A RESULTING UNAUTHORIZED DISCHARGE THE PROPOSED BAN IS PART OF AN ORDER TO BE CONSIDERED BY THE COMMISSION'S BOARD ON WEDNESDAY THE ORDER WOULD REQUIRE THE MOBLEY UNIT TO HIRE CONSULTANTS TO REVIEW ITS OPERATIONS AND PAST PROBLEMS BEFORE ACCEPTING NEW WASTE SHIPMENTS WE INTEND TO VIGOROUSLY OBJECT TO THE PROPOSED RESTRICTION OF WASTE RECEIPT SAID MICHAEL M STARK MOBLEY PRESIDENT AND CHIEF OPERATING OFFICER ADDING THAT GIBRALTAR HAS MADE A MONUMENTAL EFFORT TO ADDRESS CONCERNS RAISED EARLIER BY THE COMMISSION'S STAFF 9309210130 930921 THEY BUILD THEIR EDIFICES HIGH FOR THE JOY OF TAKING THEM DOWN BY PETER STEIN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CARIE KU IS A MASTER BUILDER OF SALADS OTHER CUSTOMERS AT PIZZA HUT SALAD BARS HERE TAKE AN ORTHODOX LETTUCEBASED APPROACH TO SALAD STRUCTURE BUT MS KU A PERSONAL FINANCIAL CONSULTANT BEGINS BY MAKING A NEAT RING OF QUARTERED TOMATOES AROUND THE EDGE OF HER PLASTIC SALAD BOWL INSIDE THAT WALL SHE LAYERS PINEAPPLE CHUNKS THAT MAKES THE SALAD STRONGER MORE STABLE SHE EXPLAINS BUILDING A STRONGER MORE STABLE SALAD IS IMPORTANT TO CUSTOMERS AT PIZZA HUT'S 36 OUTLETS IN THIS BRITISH COLONY HONG KONG'S PIZZA HUTS RUN BY JARDINE PACIFIC LTD UNDER A FRANCHISE FROM PEPSICO INC CHARGE THE EQUIVALENT OF US310 FOR ALL YOU CAN CRAM INTO YOUR BOWL IN ONE TRIP TO THE SALAD BAR THAT PROMPTS CUSTOMERS HERE TO BUILD SALADS MORE REMINISCENT OF SKYSCRAPERS THAN SIDE DISHES EVERY FOOD ITEM HAS ITS PLACE DETERMINED LESS BY TASTE THAN BY FUNCTION CORN FOR INSTANCE IS WIDELY RECOGNIZED AS A FOUNDATION FOOD THERE'S LESS EMPTY SPACE WITH CORN EXPLAINS A MISS HONG A WOMAN IN A BRIGHT YELLOW LINEN DRESS WHO DECLINES TO GIVE HER FIRST NAME MISS HONG SPURNS TOMATO WALLS IN FAVOR OF LETTUCELEAF EDGES THAT HAS THE EFFECT OF MAKING THE BOWL WIDER SHE INSTRUCTS YOU HAVE TO ENLARGE THE SURFACE AREA BEFORE YOU CAN ADD MORE STUFF ABOVE HER CORN BASE MISS HONG PILES RAISINS PINEAPPLE CHUNKS POTATO SALAD TWO TYPES DICED CUCUMBERS SHREDDED CARROTS AND BACON BITS WITH SPORADIC SPLASHES OF PIZZA HUT'S THOUSAND ISLAND DRESSING EVERY FEW LEVELS ADD SOME DRESSING TO MAKE IT STICK RECOMMENDS STEPHEN LEE A YOUNG EMPLOYEE AT DAO HENG BANK MS KU LAMENTS STRATEGIC ADJUSTMENTS THE COMPANY HAS MADE OVER THE YEARS BEFORE IT WAS EASIER TO MAKE THEM TALLER SHE SAYS THE CUCUMBERS WERE CUT IN ROUND SLICES NOT IN CHUNKS SHE ALSO REGRETS THE DISAPPEARANCE OF CARROT STICKS WHICH OFFERED COLUMNAR SUPPORT ALONG THE SALAD'S EDGE NOW PIZZA HUT OFFERS ONLY CARROT SHREDS TONY KWAN PIZZA HUT'S MARKETING DIRECTOR IN HONG KONG DENIES THE CHANGES WERE AIMED AT STUNTING SALAD GROWTH IT'S NOT TO ADD DIFFICULTIES FOR THE CUSTOMERS BUT TO IMPROVE QUALITY AS FOR THE SHREDDED CARROTS HE SAYS PERSONALLY I WOULD PREFER THE CARROTS TO BE LIKE THAT 9309210129 930921 WHO'S NEWS COMPUSA INC NAMES VICE PRESIDENTS AS PART OF REORGANIZATION PLAN DALLAS COMPUSA INC NAMED FIVE NEW VICE PRESIDENTS AS PART OF A CONTINUING CORPORATE REORGANIZATION THE COMPUTER SUPERSTORE OPERATOR WHICH RECENTLY DIVIDED ITS US OPERATIONS INTO THREE OPERATING UNITS ALSO SAID IT ELECTED LEONARD L BERRY 50 YEARS OLD TO ITS BOARD MR BERRY WHO INCREASES COMPUSA'S BOARD TO EIGHT MEMBERS IS A PROFESSOR OF RETAILING STUDIES AT TEXAS A&M UNIVERSITY AND DIRECTOR OF THAT SCHOOL'S CENTER FOR RETAILING STUDIES THE COMPANY'S NEW VICE PRESIDENTS INCLUDE TWO EXECUTIVES FROM HOME BASE A HOMEIMPROVEMENTS RETAILER THAT IS A UNIT OF WABAN INC IN MAY COMPUSA TAPPED JAMES HALPIN HOME BASE'S PRESIDENT AS ITS NEW PRESIDENT AND CHIEF OPERATING OFFICER RONALD J GILMORE FORMERLY VICE PRESIDENT OF MARKETING AND ADVERTISING FOR HOME BASE WAS NAMED VICE PRESIDENT OF ADVERTISING AND SALES PROMOTION OF COMPUSA MR GILMORE 38 YEARS OLD SUCCEEDS CHUCK KREMERS WHO RECENTLY LEFT THE COMPANY PAUL B POYFAIR FORMER VICE PRESIDENT OF HUMAN RESOURCES AT HOME BASE WILL ASSUME THE SAME JOB AT THE COMPUTER RETAILER MR POYFAIR 41 SUCCEEDS JACK A PHELPS NOW PRESIDENT OF COMPUSA CENTRAL COMPUSA ALSO NAMED THE FOLLOWING EXECTIVES TO NEW POSITIONS AT THE COMPANY J SAMUEL CROWLEY VICE PRESIDENT OF RETAIL SALES BARRY C MCCOOK ALSO VICE PRESIDENT OF RETAIL SALES AND MARK R WALKER VICE PRESIDENT GENERAL COUNSEL AND SECRETARY 9309210128 930921 SANTA FE ENERGY FINDS HOPEFUL RESULTS ON GAS FROM ARGENTINE FIELD HOUSTON SANTA FE ENERGY RESOURCES INC SAID TEST RESULTS FROM A SECOND AND THIRD WELL AT ITS SIERRA CHATA NATURAL GAS PROSPECT IN THE NEUQUEN BASIN OF ARGENTINA INDICATE THE FIELD MAY BE AN EXTENSIVE RESERVOIR INITIAL TESTS OF THE SIERRA CHATA SUR X1 WELL LOCATED TWO MILES SOUTHWEST FROM THE COMPANY'S SIERRA CHATA X1 DISCOVERY WELL FLOWED AT AS MUCH AS 178 MILLION CUBIC FEET OF NATURAL GAS PER DAY THROUGH A ONEINCH CHOKE AT SEVERAL INTERVALS BETWEEN DEPTHS OF 5660 AND 5885 FEET RECENT TESTS USING A 3/4INCH CHOKE RESULTED IN A STABILIZED FLOW RATE OF 135 MILLION CUBIC FEET PER DAY WITH FLOWING TUBING PRESSURE OF 1140 POUNDS PER SQUARE INCH EARLY TESTS SUGGEST A CARBON DIOXIDE CONTENT OF 10 TO 25 UNLIKE THE DISCOVERY WELL BUT TYPICAL OF SOME WELLS IN OTHER FIELDS IN THIS REGION THE THIRD WELL SIERRA CHATA E2 REACHED A TOTAL DEPTH OF 6252 FEET AND INDICATES THE PRESENCE OF NATURAL GAS IN THE TWO ZONES SUCCESSFULLY TESTED IN THE DISCOVERY WELL PLUS THE POTENTIAL FOR OTHER PRODUCTIVE PAY ZONES THE COMPANY SAID IT IS CONSIDERING DRILLING A FOURTH WELL NEXT MONTH IN APRIL TWO ZONES FROM THE SIERRA CHATA X1 DISCOVERY WELL TESTED AT RATES OF 11 MILLION AND 109 MILLION CUBIC FEET OF GAS PER DAY THROUGH A ONEINCH CHOKE THE SIERRA CHATA DISCOVERY IS ABOUT 600 MILES SOUTHWEST OF BUENOS AIRES SANTA FE ENERGY RESOURCES IS AN INDEPENDENT OIL AND GAS EXPLORATION AND PRODUCTION COMPANY 9309210127 930921 INTERNATIONAL BANCO SANTANDER OF SPAIN MADRID SPAIN'S BANCO SANTANDER SAID ITS TAKEOVER BID FOR PORTUGAL'S BANCO DE COMERCIO E INDUSTRIA HAD SUCCESSFULLY CLOSED RAISING ITS STAKE TO 748 FROM 19 BANCO SANTANDER PAID 1400 ESCUDOS 847 A SHARE FOR THE STAKE REPRESENTING A PREMIUM OF 40 AND SPENT A TOTAL 211 BILLION ESCUDOS ON THE ACQUISITION SANTANDER LAUNCHED THE BID FOR BCI IN MAY TWO OTHER MAJOR BCI SHAREHOLDERS ROYAL BANK OF SCOTLAND WITH 15 AND METROPOLITAN LIFE INSURANCE CO WITH 36 APPROVED THE BID BCI OPERATES THROUGH 103 BRANCHES THROUGHOUT PORTUGAL 9309210126 930921 IMPERIAL CHEMICAL TO SELL VICTREX LONDON IMPERIAL CHEMICAL INDUSTRIES PLC HAS AGREED TO SELL ITS VICTREX LTD POLYTHERETHERKETONE BUSINESS IN A MANAGEMENT BUYOUT THE BUYOUT IS BEING BACKED BY FUNDS FROM VENTURE CAPITALISTS LED BY CVC CAPITAL PARTNERS LTD THE VENTURECAPITAL ADVISER OF CITICORP'S EUROPEAN OPERATIONS BECAUSE THE TRANSACTION VALUE IS LESS THAN THE REGULATORYDISCLOSURE THRESHOLD OF 1 OF ICI'S GROUP NET ASSETS NO OTHER DETAILS ARE BEING RELEASED BY THE COMPANY THE SALE IS PART OF ICI'S STRATEGY OF DISPOSING OF NONCORE OPERATIONS VICTREX BASED IN HILLHOUSE LANCASHIRE HAS 50 EMPLOYEES AND PRODUCES 400 TONS OF PRODUCT ANNUALLY 9309210125 930921 MARKETING & MEDIA SONY PROMOTES MOTTOLA TO PRESIDENT OF ITS WORLDWIDE MUSIC OPERATIONS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THOMAS D MOTTOLA PRESIDENT OF SONY CORP'S MUSIC BUSINESS IN THE US WAS PROMOTED TO A NEW POST RESPONSIBLE FOR SONY MUSIC'S BUSINESS WORLDWIDE HE IS CREDITED WITH REENERGIZING THE COMPANY IN THIS COUNTRY BOOSTING BOTH ITS SHARE OF HITS AND ITS EARNINGS MR MOTTOLA 43 YEARS OLD WAS GIVEN THE TITLE OF PRESIDENT AND CHIEF OPERATING OFFICER OF SONY MUSIC ENTERTAINMENT MEL ILBERMAN PRESIDENT OF SONY MUSIC INTERNATIONAL WILL REPORT TO MR MOTTOLA THE NEW POST IS ESSENTIALLY EQUIVALENT TO THAT OF WALTER YETNIKOFF WHO RAN CBS RECORDS BEFORE IT WAS ACQUIRED BY SONY AND WHO RECRUITED MR MOTTOLA IN 1988 FROM HIS JOB AT AN ARTISTS' MANAGEMENT COMPANY FOR YEARS NAYSAYERS QUESTIONED MR MOTTOLA'S ABILITY TO FILL THE TOP JOB SAYING HE WAS A ROUGHANDTUMBLE STREET FIGHTER WITHOUT MANAGEMENT EXPERIENCE CRITICS PREDICTED HIS LAVISH CONTRACTS FOR SUCH GROUPS AS AEROSMITH WOULD NEVER PAY OFF AND CARPED THAT LABELS COLUMBIA AND EPIC COULDN'T SEEM TO BUILD ANY NEW ROCK ACTS HE HAS BEEN ACCUSED BY SOME IN THE INDUSTRY OF CONFLICTS OF INTEREST HIS LAWYER ALLEN GRUBMAN ALSO HANDLES MANY MATTERS FOR SONY MUSIC AND SOME WONDERED IF POP DIVA MARIAH CAREY GOT SPECIAL TREATMENT FROM THE LABEL BECAUSE SHE WAS DATING MR MOTTOLA THE TWO RECENTLY MARRIED BUT THE CRITICISM HAS DIED DOWN OVER THE PAST SEVERAL YEARS AS SONY'S FORTUNES HAVE IMPROVED IN THE MUSIC CHARTS AND ITS PROFITS ROSE SONY WON'T BREAK OUT THE NUMBERS BUT SAYS SONY MUSIC'S PROFITS HAVE DOUBLED IN THE US SINCE MR MOTTOLA'S ARRIVAL ON A 50 GAIN IN REVENUE THE COMPANY SAYS ITS MARKET SHARE IS NOW THE HIGHEST IT HAS BEEN IN A DECADE PROVING THAT SONY MUSIC DIDN'T JUST COUNT ON VETERAN POP STARS LIKE MICHAEL JACKSON AND BARBRA STREISAND THE COMPANY HAS RECENTLY DEVELOPED A SERIES OF CUTTINGEDGE ROCK BANDS INCLUDING PEARL JAM ALICE IN CHAINS AND SOUL ASYLUM INTO ACTS THAT GO PLATINUM OR SELL A MILLION COPIES CURRENTLY SONY MUSIC HAS FOUR OF THE TOP 10 ALBUMS ON THE BILLBOARD MUSIC CHART INCLUDING BILLY JOEL'S NEW ALBUM THE SOUNDTRACK FOR SLEEPLESS IN SEATTLE AND AN ALBUM BY A RAP GROUP CYPRESS HILL MR MOTTOLA DID THIS PARTLY BY ASSEMBLING A GROUP OF AGGRESSIVE TALENTSPOTTING EXECUTIVES HE LURED DON IENNER FROM BERTELSMANN AG'S ARISTA TO RUN COLUMBIA RECORDS AND GOT DAVID GLEW FROM TIME WARNER INC'S ATLANTIC TO HEAD EPIC HE ALSO INSTALLED MICHELLE ANTHONY A MUSIC INDUSTRY ATTORNEY FROM LOS ANGELES IN A SENIOR MANAGEMENT ROLE SONY HAS LATELY BEEN RUNNING ON ALL EIGHT CYLINDERS IN AMERICA THEY ARE ABSOLUTELY KILLING THE COMPETITION SAYS CLIFF BURNSTEIN A PARTNER IN Q PRIME WHICH MANAGES SUCH ROCK BANDS AS METALLICA AND DEF LEPPARD THEY'VE DONE EVERYTHING RIGHT IN THE LAST TWO YEARS EXPLOITING POP STARS LIKE MICHAEL BOLTON TO THE NTH DEGREE THEY'VE ALSO DONE A GOOD JOB NURTURING EMERGING BANDS LIKE RAGE AGAINST THE MACHINE MICHAEL SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN INC WHICH COMPILES THE MUSIC CHARTS FOR BILLBOARD SAYS RIGHT NOW SONY IS AHEAD OF WARNER MUSIC IN NUMBER OF HIT ALBUMS ON THE CHART FOR THE FIRST TIME IN AGES I THINK THE PROOF OF THEIR MARKETING ABILITY IS THAT THEY'VE BEEN ABLE TO GET ADULT RECORDS LIKE BILLY JOEL AND BARBRA STREISAND TO DEBUT AT NO 1 ON THE CHART WHICH IS VERY TOUGH ADULTS DON'T RUSH OUT TO BUY A NEW RECORD SONY SOMEHOW GOT THE WORD OUT MR MOTTOLA SAID HIS MANAGEMENT TEAM HAS WORKED HARDEST AT LONGTERM ARTIST DEVELOPMENT AND HAS SOUGHT TO DEVELOP BANDS FROM A GRASSROOTS LEVEL EVEN WHEN THE GOING WAS SLOW AN ALBUM BY A GROUP CALLED SPIN DOCTORS FOR EXAMPLE NOW THE RAGE ON THE COLLEGE CIRCUIT WAS RELEASED BACK IN 1991 SAID MR MOTTOLA SONY KEPT SUPPORTING THE BAND ON TOUR AND NOW THE ALBUM HAS SOLD 35 MILLION COPIES ARTIST DEVELOPMENT ON A WORLDWIDE BASIS WILL BE ONE OF MY MAIN THEMES SAID MR MOTTOLA I FEEL WE CAN ACHIEVE NO 1 MARKET SHARE IN PRETTY MUCH EVERY TERRITORY AROUND THE WORLD COMPETITORS SAY SONY STILL HAS MUCH TO ACCOMPLISH OUTSIDE THE US WHERE IT HAS LOST MARKET SHARE IN MANY COUNTRIES ESPECIALLY TO TIME WARNER'S WARNER MUSIC AND BERTELSMANN'S BERTELSMANN MUSIC GROUP SONY COULDN'T BE DOING ANY BETTER IN NORTH AMERICA AND NOW HE'LL TURN THE COMPANY'S ATTENTION TO REBUILDING THE MARKET SHARE THEY'VE LOST OVERSEAS SAYS IRVING AZOFF CHAIRMAN OF GIANT RECORDS GOING FORWARD SONY WILL HAVE TO KEEP PUMPING OUT THE HITS TO SUPPORT THE COMPANY'S EXPENSIVE STAR CONTRACTS FOR THE LIKES OF MICHAEL JACKSON AND TO SUPPORT ITS RISING OVERHEAD THE COMPANY RECENTLY SPENT MILLIONS ON A NEW STATEOFTHEART RECORDING STUDIO IN NEW YORK SONY MUSIC ENTERTAINMENT EMPLOYS SOME 11000 PEOPLE WORLDWIDE 9309210124 930921 HEAD OF BNP SEES LOWER 1993 PROFIT AMID PRIVATIZATION BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL PARIS BANQUE NATIONALE DE PARIS WILL SHOW SHARPLY LOWER PROFITS THIS YEAR THAN IN 1992 WHEN IT REPORTED EARNINGS OF 22 BILLION FRANCS 391 MILLION CHAIRMAN MICHEL PEBEREAU WARNED AT AN EVENING MEETING WITH JOURNALISTS AND INVESTMENT ANALYSTS TO LAUNCH THE BANK'S LONGAWAITED PRIVATIZATION THE YEAR 1993 WILL BE A DIFFICULT YEAR AND 1994 WILL BE ANOTHER DIFFICULT YEAR HE SAID BUT BNP SAID IT PLANS TO BUILD ON EXISTING COOPERATION AGREEMENTS WITH UNION DES ASSURANCES DE PARIS AND DRESDNER BANK AS PART OF A STRATEGY TO RESTORE ACCEPTABLE LEVELS OF PROFITABILITY BY 1995 THE BANK SAID IT WILL PAY A LOWER PERSHARE DIVIDEND THIS YEAR THAN THE 75 FRANCS NET DIVIDEND PAID FOR 1992 LAST MONTH BNP ANNOUNCED A 61 PLUNGE IN FIRST HALF 1993 GROUP NET INCOME TO 522 MILLION FRANCS FROM 133 BILLION FRANCS IN A COMPLEX OPERATION LIKELY TO VALUE BNP AT BETWEEN 40 BILLION AND 45 BILLION FRANCS THE FRENCH GOVERNMENT IS EXPECTED TO SELL ITS APPROXIMATELY 73 HOLDING IN BNP IN SEVERAL STAGES TO INSTITUTIONAL AND CORPORATE SHAREHOLDERS PRIVATE INVESTORS AND BANK EMPLOYEES THE OPERATION IS SCHEDULED TO BE CLOSED AT THE LATEST BY DEC 20 BUT THE GOVERNMENT HASN'T YET ANNOUNCED AT WHAT PRICES IT WILL SELL SHARES TO THE VARIOUS CATEGORIES OF PURCHASERS THE ONLY BNP SHARES CURRENTLY QUOTED ON THE MARKET ARE NONVOTING INVESTMENT CERTIFICATES SKETCHING OUT BNP'S STRATEGY FOLLOWING PRIVATIZATION MR PEBEREAU SAID IT WOULD CONCENTRATE ON TWO MAIN AREAS RETAIL BANKING IN FRANCE AND INTERNATIONAL BANKING FOR LARGE CORPORATE CLIENTS WITHIN THOSE CONTEXTS HE SAID BNP'S EXISTING COOPERATION AGREEMENTS WITH UAP THE FRENCH STATECONTROLLED INSURANCE COMPANY SOON TO BE PRIVATIZED AND GERMANY'S DRESDNER BANK WOULD PLAY A MAJOR ROLE WITH DRESDNER BANK BNP HAS LAUNCHED A COOPERATION PACT ON INTERNATIONAL MARKETS THE TWO BANKS HAVE OPENED A NUMBER OF JOINT SUBSIDIARIES NOTABLY IN CENTRAL AND EASTERN EUROPE OF WHICH THE MOST RECENT WAS INAUGURATED EARLIER THIS MONTH IN MOSCOW BOTH UAP AND DRESDNER ARE EXPECTED TO BE AMONG KEY BNP SHAREHOLDERS IN THE FUTURE BNP AND UAP ALREADY HAVE CROSSSHAREHOLDINGS DRESDNER BANK AND BNP ARE EXPECTED TO TAKE RECIPROCAL HOLDINGS IN EACH OTHER ONCE EUROPEAN COMMUNITY COMPETITION AUTHORITIES GIVE THE GREEN LIGHT TO THEIR COOPERATION PACT 9309210123 930921 HONDO TO SELL STOCK OF UNIT ROSWELL NM HONDO OIL & GAS CO SAID IT AGREED TO SELL THE STOCK OF ITS WHOLLY OWNED FLETCHER OIL & REFINING CO UNIT FOR ABOUT 25 MILLION THE NAME OF THE BUYER WASN'T DISCLOSED A HONDO EXECUTIVE SAID UNDER THE TERMS OF THE AGREEMENT HONDO EXPECTS TO RECEIVE 1 MILLION AT CLOSING 600000 SHORTLY THEREAFTER AND A PART OF THE PROCEEDS FROM THE SALE OF CERTAIN REFINERY PROCESS EQUIPMENT HONDO SAID IT EXPECTS TO RECORD A BOOK LOSS OF 65 MILLION ON THE SALE OF THOSE ASSETS WHICH HAVE BEEN CARRIED AS DISCONTINUED OPERATIONS ON THE COMPANY'S FINANCIAL STATEMENTS AND HELD FOR SALE FOR OVER TWO YEARS 9309210122 930921 HEARD ON THE STREET SHORT SELLER EXPECTS TEMPHELP FIRMS TO BE HIT BY CLINTON HEALTHPLAN COSTS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL JAMES CHANOS THE WELLKNOWN SHORT SELLER IS BETTING AGAINST TEMPORARYHELP COMPANIES SUCH AS MANPOWER OLSTEN KELLY SERVICES AND ADIA SERVICES TEMP WORKERS ARE IN BRISK DEMAND AT OFFICES AND FACTORIES BUT MR CHANOS THINKS THE PROPOSED CLINTON ADMINISTRATION HEALTH PLAN IS A BODY BLOW TO TEMPORARYHELP COMPANIES THE PRESIDENT WILL UNVEIL THE PLAN IN A SPEECH TOMORROW EVENING BUSINESSES AS THEY DOWNSIZE HAVE FOUND IT PROFITABLE TO HIRE WHOLE GROUPS OF TEMPS MR CHANOS SAYS IT'S PROFITABLE BECAUSE THEY DON'T PAY BENEFITS SPECIFICALLY HEALTH BENEFITS WELL THAT GAME IS ENDING AND MR CHANOS'S SHORTSELLING IS BEGINNING SHORTS BORROW STOCK AND IMMEDIATELY SELL IT HOPING THE PRICE WILL FALL EVENTUALLY THEY MUST COVER THEIR POSITION BY BUYING REPLACEMENT SHARES BUT IF THE STOCK HAS FALLEN IN THE MEANTIME THEY PROFIT MR CHANOS IS PROBABLY THE NATION'S LARGEST SHORT SELLER HIS KYNIKOS ASSOCIATES MANAGES MORE THAN 300 MILLION PRESIDENT CLINTON'S PLAN WOULD REQUIRE EMPLOYERS APPARENTLY INCLUDING TEMPORARYHELP COMPANIES TO OFFER HEALTH INSURANCE EVEN TO PARTTIME WORKERS EMPLOYERS WOULD HAVE TO OFFER FULL HEALTH INSURANCE COVERAGE WITH A BASIC PACKAGE OF BENEFITS TO ANY EMPLOYEE WHO WORKS AT LEAST 30 HOURS A WEEK EMPLOYEES WORKING FEWER HOURS WOULD GET PARTIAL COVERAGE FOR EXAMPLE AN EMPLOYEE WHO WORKS 15 HOURS A WEEK WOULD GET 50 OF HIS OR HER PREMIUM PAID BY THE EMPLOYER MR CHANOS SAYS THAT IF TEMP COMPANIES TRY TO PASS THE NEW COST ON TO CLIENTS DEMAND IS GOING TO PLUMMET IF THEY SWALLOW THE ADDED COST THEMSELVES IT WILL WIPE OUT THEIR PROFITS BECAUSE THESE COMPANIES OPERATE ON RAZORTHIN MARGINS TYPICALLY PRETAX MARGINS OF 2 OR 3 SIMILAR CONCERNS DECKED RESTAURANT STOCKS EARLIER THIS YEAR MR CHANOS SAYS YET RESTAURANTS HE CONTENDS ARE BETTER ABLE TO PASS ALONG THE COSTS TO CUSTOMERS THAN TEMPORARYHELP COMPANIES ARE INVESTORS IN TEMP COMPANIES SEEM OBLIVIOUS TO THE THREAT MR CHANOS ARGUES MANY OF THE STOCKS SELL FOR 25 TO 35 TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS DEFENDERS OF THE TEMPORARYHELP STOCKS SAY MR CHANOS HAS GOT THE PICTURE WRONG OUR CLIENTS DO NOT USE OUR SERVICES TO SKIRT OR GET OUT OF BENEFITS SAYS FRANK LIGUORI CHIEF EXECUTIVE OFFICER OF OLSTEN THEY USE OUR SERVICES BECAUSE IT'S COSTEFFECTIVE FOR THEM TO DEAL WITH A FLUCTUATING WORK CYCLE IF YOU NEED SOMEONE FOR THREE MONTHS YOU DON'T HIRE THEM FOR A YEAR MR LIGUORI SAYS HE'S CONFIDENT OLSTEN WILL BE ABLE TO PASS ANY ADDED COSTS ALONG TO CLIENTS HOWEVER HE SAYS WE WOULD HOPE THAT THE ADMINISTRATION WILL RECOGNIZE THE UNIQUENESS OF OUR ASSIGNMENT EMPLOYEES' RELATIONSHIP WITH OUR COMPANIES THAT THEY COME AND GO AS THEY WISH AND ALLOW FOR A THRESHOLD PERIOD OF EMPLOYMENT BEFORE EMPLOYEES ARE COVERED OTHERWISE THE SHORTTERM SWINGS ARE REALLY UNWIELDY THE OLSTEN CEO ALSO HOPES ANY BILL CONGRESS PASSES WILL INCLUDE AN OPTOUT PROVISION SO PEOPLE ALREADY COVERED UNDER A SPOUSE'S POLICY CAN DECLINE COVERAGE HOWEVER LEHMAN BROTHERS' POLITICAL ANALYST THOMAS GALLAGHER BELIEVES THE ADMINISTRATION DOESN'T WANT OPTOUT PROVISIONS SINCE IT DOESN'T WANT SOME EMPLOYERS TO SUBSIDIZE OTHERS MR LIGUORI ADDS THAT HE THINKS THE CLINTON ADMINISTRATION WILL TRY TO ENCOURAGE HOME HEALTH CARE AS A COSTSAVING ALTERNATIVE TO HOSPITALIZATION THROUGH ITS ACQUISITION OF LIFETIME CORP OLSTEN HAS BECOME A SIGNIFICANT PROVIDER OF HOME HEALTHCARE SERVICES STEVEN ASHLEY AN ANALYST WITH CLEARY GULL IN MILWAUKEE SAYS TEMP COMPANIES SUCH AS MANPOWER THE ONLY ONE HE FOLLOWS WILL BE IN DEMAND EVEN IF THEY HAVE TO JACK UP PRICES TO COVER HEALTH INSURANCE COSTS WHAT MANPOWER OFFERS IS NOT NECESSARILY A LESSEXPENSIVE ALTERNATIVE HE SAYS WHAT IT OFFERS IS FLEXIBILITY MR ASHLEY HAS AN ACCUMULATE RATING ON MANPOWER HE SAYS HE STOPS SHORT OF A FULLFLEDGED BUY BECAUSE MANPOWER GETS ABOUT HALF ITS REVENUE FROM EUROPE WHERE ECONOMIES REMAIN WEAK THAT WEAKNESS WAS ALSO THE REASON JANUS FUND SOLD ITS MANPOWER SHARES RECENTLY SAYS JANUS CAPITAL ANALYST CLAIRE YOUNG THE HEALTH PROPOSAL SHE SAYS MIGHT AFFECT MANPOWER SOMEWHAT LESS THAN COMPETITORS SINCE MANPOWER ALREADY PROVIDES SOME HEALTH COVERAGE TO SOME OF ITS EMPLOYEES MANPOWER ISSUED A STATEMENT SAYING WE ARE SUPPORTING THE HEALTHCARE REFORM PROPOSAL AS WE'VE SEEN IT WE DO BELIEVE THAT EVERY PERSON IN OUR SOCIETY SHOULD HAVE CONTINUED ACCESS TO QUALITY HEALTH CARE AT AN AFFORDABLE COST A SPOKESWOMAN DECLINED TO COMMENT ON WHAT THE IMPACT OF THE CLINTON HEALTHCARE PLAN ON MANPOWER'S PROFITS MIGHT BE A KELLY SERVICES SPOKESWOMAN SAID THE COMPANY HAS NO COMMENT BECAUSE THE IMPACT OF HEALTHCARE REFORM IS HIGHLY SPECULATIVE AT THIS POINT WE ARE CLOSELY WATCHING DEVELOPMENTS SHE ADDED ADIA OFFICIALS COULDN'T BE REACHED FOR COMMENT MICHAEL MURPHY A MONEY MANAGER AND NEWSLETTER WRITER IN HALF MOON BAY CALIF WHO OFTEN SELLS STOCKS SHORT SAYS HE THINKS MR CHANOS'S ANALYSIS IS CORRECT THE FRINGE BENEFIT LOAD IS 10 OF PAYROLL INSTEAD OF 30 WHEN AN EMPLOYER USES TEMPS HE ESTIMATES SOCIAL SECURITY AND SOME STATE TAXES MUST BE PAID BUT THE EMPLOYER DUCKS THE COST OF PENSIONS VACATION PAY AND HEALTH CARE THE CLINTON PLAN COULD NARROW THE COST DIFFERENTIAL MR MURPHY SAYS IT'S NOT GOING TO CAUSE SOMEBODY TO HAVE A BAD QUARTER BUT IT MIGHT SAP PROFITS GRADUALLY HE ADDS THAT HE HASN'T SHORTED THE STOCKS CHARLES BIDERMAN EDITOR OF THE INVESTMENT NEWSLETTER MARKET TRIM TABS SAYS HE DOESN'T BUY MR CHANOS'S ARGUMENT TEMPORARYHELP WORKERS' SALARIES ARE LOWER AND THERE ARE OTHER BENEFITS BESIDES HEALTH NOTABLY NSIONS HE SAYS SO HIRING TEMPS IS STILL BETTER THAN HAVING FULLTIME EMPLOYEES FROM A COSTCONTROL STANDPOINT HE SAYS DON MITCHELL MANAGING DIRECTOR OF CONSULTANT MITCHELL & CO IN WALTHAM MASS SAYS HE WOULD AVOID THE STOCKS MR MITCHELL SPECIALIZES IN STUDYING THE VARIABLES THAT AFFECT A STOCK'S PRICE OVER A LONG PERIOD SUCH AS 15 YEARS AND DRAWING UP FORMULAS THAT USUALLY TRACK THE PRICE CLOSELY MR MITCHELL DOESN'T HAVE ENOUGH DATA TO DERIVE A FORMULA FOR MANPOWER OR ADIA SERVICES STOCK BUT HE DID CREATE FORMULAS FOR OLSTEN AND KELLY SERVICES A GOOD APPROXIMATION FOR OLSTEN'S STOCK PRICE OVER THE YEARS MR MITCHELL SAYS HAS BEEN 2156 TIMES EARNINGS PER SHARE MINUS 162 ANOTHER FORMULA THAT WORKS PRETTY WELL IS 31 TIMES BOOK VALUE ASSETS MINUS LIABILITIES PER SHARE MINUS 55 CENTS EITHER WAY THE STOCK LOOKS LIKE IT'S WAY OVERPRICED RIGHT NOW HE SAYS THE FORMULAS CALL FOR A PRICE AROUND 21 TO 23 BUT THE STOCK WAS AT 29 5/8 YESTERDAY KELLY'S STOCK PRICE MR MITCHELL SAYS IS APPROXIMATED BY A FORMULA OF 083 TIMES SALES PER SHARE MINUS 547 BY THAT STANDARD IT LOOKS FAIRLY PRICED AT THE MOMENT BUT THE HEALTHCARE ISSUE TILTS HIM AGAINST IT OF COURSE THE CLINTON HEALTHCARE PLAN MIGHT NEVER PASS CONGRESS AND IF ENACTED IT MIGHT BE WATERED DOWN PERHAPS EXCLUDING MOST TEMPORARY WORKERS BUT AT TODAY'S STOCK PRICES MR CHANOS SEEMS TO HAVE A POINT WHEN HE SAYS INVESTORS IN THE STOCKS ARE TAKING A BIG CHANCE THREE OF THE FOUR MAJOR TEMPORARY HELP FIRMS HAVE OUTPERFORMED THE OVERALL STOCK MARKET THIS YEAR AND ALL FOUR SELL AT A HIGHERTHANAVERAGE PRICEEARNINGS RATIO SECURITIES DEALERS AUTOMATED QUOTATION SYSTEM NYSE=NEW YORK STOCK EXCHANGE CURRENT AVERAGE P/E FOR ALL NEW YORK STOCK EXCHANGE STOCKS WITH POSITIVE EARNINGS IS ABOUT 18 ACCORDING TO FACTSET DATA SYSTEMS WITH CHARGES FOR GOODWILL AMORTIZATION REPORTED EARNINGS WERE NEGATIVE 9309210121 930921 TECHNOLOGY AMERICA ONLINE PLANS TO OFFER SUBSCRIBERS EASY INTERNET ACCESS VIENNA VA HOPING TO CASH IN ON THE GROWING POPULARITY OF THE INTERNET COMPUTERCOMMUNICATIONS NETWORK AMERICA ONLINE INC SAID IT WILL BEGIN PROVIDING EXPANDED EASYTOUSE INTERNET ACCESS TO SUBSCRIBERS AMERICA ONLINE ALREADY PROVIDES A GATEWAY SO THAT SUBSCRIBERS TO ITS ONLINE SERVICE CAN EXCHANGE ELECTRONIC MAIL WITH INTERNET USERS BUT NEXT MONTH THE SERVICE WILL LAUNCH INTERNET CENTER WHICH WILL PROVIDE EXPANDED ACCESS INTO SOME INTERNET SERVICES INCLUDING ELECTRONIC BULLETIN BOARDS KNOWN AS NEWS GROUPS WHERE MESSAGES CAN BE POSTED AS WELL AS GOPHER AND WAIS WHICH ARE SEARCHING TOOLS ADDITIONAL FEATURES WILL BE PHASED IN DURING THE NEXT YEAR THE INTERNET A GLOBAL WEB OF THOUSANDS OF SMALLER COMPUTER NETWORKS BOTH PUBLIC AND PRIVATE IS NOTORIOUSLY DIFFICULT TO NAVIGATE AS COMPARED TO ONLINE COMMERCIAL SERVICES SUCH AS AMERICA ONLINE COMPUSERVE AND PRODIGY WHICH GENERALLY FEATURE COLORFUL GRAPHICS AND PLENTY OF HELP SCREENS NEVERTHELESS THE INTERNET WHICH IS RUN AS A COOPERATIVE AND HAS NO OWNER IS BELIEVED TO BE THE FASTESTGROWING ONLINE SERVICE AMERICA ONLINE SAID ITS NEW INTERNET CENTER WILL FEATURE SIMPLE GRAPHICAL NAVIGATION THROUGH THE NETWORK IT WILL BE INCLUDED IN THE STANDARD MONTHLY CHARGE OF 995 FOR UP TO FIVE HOURS OF ACCESS COMPUSERVE INC A UNIT OF H&R BLOCK INC OFFERS A GATEWAY TO EXCHANGE EMAIL WITH THE INTERNET BUT HAS NO IMMEDIATE PLANS TO EXPAND ACCESS TO OTHER SERVICES A SPOKESMAN SAID PRODIGY JOINTLY OWNED BY INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO PLANS TO OFFER AN EMAIL INTERNET GATEWAY THIS FALL DELPHI INTERNET SERVICES INC A COMMERCIAL ONLINE SERVICE THAT RECENTLY WAS PURCHASED BY NEWS CORP OFFERS EXPANDED INTERNET SERVICES BUT DOES NOT FEATURE A GRAPHICAL INTERFACE 9309210120 930921 POLITICS & POLICY PROPOSAL TO OVERHAUL FOODSAFETY LAWS TO BE UNVEILED TODAY BY WHITE HOUSE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WILL PROPOSE AN OVERHAUL OF LAWS AND REGULATIONS GOVERNING FOOD SAFETY INCLUDING CREATION OF A THREEYEAR FAST TRACK FOR EVALUATING PESTICIDES BELIEVED TO BE UNSAFE THE PROPOSALS SET TO BE UNVEILED TODAY AT A CONGRESSIONAL HEARING WOULD REPLACE THE SOCALLED DELANEY CLAUSE WHICH PROHIBITS THE PRESENCE IN PRACTICALLY ALL PROCESSED FOODS OF EVEN MINUTE AMOUNTS OF PESTICIDE RESIDUES OR OTHER ADDITIVES SHOWN TO INDUCE CANCER IN MAN OR ANIMAL A CONSENSUS HAS EMERGED IN RECENT YEARS THAT THE 35YEAROLD CLAUSE HAS NOT BEEN AND CANNOT BE ENFORCED TO THE LETTER BUT NO AGREEMENT EXISTS BETWEEN THE FOOD INDUSTRY AND ENVIRONMENTALISTS ABOUT WHAT THE NEW STANDARD SHOULD BE THE NEW PROPOSALS REPRESENT AN ATTEMPT BY THE WHITE HOUSE THE AGRICULTURE DEPARTMENT THE ENVIRONMENTAL PROTECTION AGENCY AND THE FOOD AND DRUG ADMINISTRATION TO BALANCE THE CONCERNS OF ALL SIDES IN RESPONSE TO CONCERNS OF ENVIRONMENTALISTS THE ADMINISTRATION WOULD PROHIBIT USE OF A PESTICIDE UNLESS THE EPA ISSUES SPECIFIC FINDINGS THAT AN APPROVED AMOUNT OF ITS RESIDUE IS SAFE FOR INFANTS AND CHILDREN NO SUCH REQUIREMENT EXISTS TODAY BUT IN A NOD TO INDUSTRY THE PROPOSALS WOULD ACCELERATE APPROVAL OF WHAT ARE VIEWED AS LOWERRISK PESTICIDES AS EXPECTED THE HEART OF THE NEW REGULATORY SCHEME WOULD BE A UNIFORM SAFETY STANDARD FOR BOTH RAW AND PROCESSED FOODS THAT WOULD REQUIRE REASONABLE CERTAINTY OF NO HARM THIS STANDARD BASED ON A RECOMMENDATION BY THE NATIONAL ACADEMY OF SCIENCES APPEARS TO TOUGHEN THE CURRENT REGULATION OF RAW FOODS SUCH AS TOMATOES WHILE EASING REGULATION OF PROCESSED FOODS SUCH AS TOMATO SAUCE IT'S DIFFICULT TO SAY PRECISELY HOW FOOD REGULATION WOULD CHANGE HOWEVER BECAUSE THE DELANEY CLAUSE HAS NEVER BEEN ENFORCED TO THE LETTER A RECENT FEDERAL COURT DECISION REQUIRED THE EPA TO ENFORCE THE DELANEY CLAUSE MORE AGGRESSIVELY AND AS A RESULT THE EPA HAS LATELY BEEN REVOKING PREVIOUSLY GRANTED APPROVALS FOR USE OF CERTAIN PESTICIDES EVEN WHILE ASSERTING THAT IT VIEWS THESE PESTICIDES AS SAFE CAUGHT IN THIS REGULATORY BIND THE EPA IS EAGER TO MOVE QUICKLY ON THE NEW SAFETY STANDARDS OTHER PROPOSALS INCLUDED IN THE PACKAGE ARE A REQUIREMENT THAT ALL PESTICIDES NOT JUDGED HIGH RISK BE EVALUATED WITHIN SEVEN YEARS HIGHRISK PESTICIDES WHICH WOULD HAVE TO BE EVALUATED WITHIN THREE YEARS WOULD BE IDENTIFIED BY THE EPA WITHIN 180 DAYS OF THE NEW SYSTEM'S ENACTMENT ELIMINATION OF ECONOMIC CONSIDERATIONS IN PESTICIDE APPROVALS EXCEPT WHEN PROHIBITING USE OF A PESTICIDE WOULD INVOLVE SIGNIFICANT DISRUPTION OF THE FOOD SUPPLY IN THE SHORT TERM A PROHIBITION ON EXPORT OF PESTICIDES BANNED IN THE US FOR HEALTH REASONS A REQUIREMENT THAT ALL PESTICIDE APPROVALS BE RECONSIDERED EVERY 15 YEARS TO ENSURE THEY STILL MEET HEALTH STANDARDS EARLY INDICATIONS SUGGEST THAT NEITHER ENVIRONMENTALISTS NOR INDUSTRY WILL BE QUICK TO EMBRACE THE NEW REGULATORY SCHEME THIS PROPOSAL AS WE THINK IT EXISTS NEEDS A LOT OF WORK SAID JEFFREY NEDELMAN A SPOKESMAN FOR THE GROCERY MANUFACTURERS OF AMERICA BUT RICHARD WILES DIRECTOR OF AGRICULTURAL POLLUTION PREVENTION FOR THE ENVIRONMENTAL WORKING GROUP AN ADVOCACY ORGANIZATION SAID HE FEARED THE ADMINISTRATION WAS PREPARING TO CREATE A WEAKER STANDARD FOR PROCESSED FOODS SOME OF THE NEW PROPOSALS WOULD REPLACE PORTIONS OF THE FEDERAL INSECTICIDE FUNGICIDE AND RODENTICIDE ACT AND THE FOOD DRUG AND COSMETIC ACT AND THUS REQUIRE CONGRESSIONAL APPROVAL OTHER PORTIONS OF THE NEW INITIATIVE WOULD REQUIRE NEW RULEMAKINGS FROM THE THREE AGENCIES INVOLVED NEITHER THE LEGISLATIVE LANGUAGE NOR THE PROPOSED NEW REGULATIONS HAVE YET BEEN CRAFTED 9309210119 930921 MIXED MEDIA QVC'S 95 BILLION BID FOR PARAMOUNT BRINGS INDUSTRY TITANS TO FRAY OFFER BY SHOPPING CHANNEL WITH TIE TO TCI COMCAST IS WELL ABOVE VIACOM'S DILLER VS REDSTONE AND DAVIS BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLASH OF THE TITANS IS ON QVC NETWORK INC CHAIRMAN BARRY DILLER SURFACED WITH AN ASTONISHING 80 A SHARE OR 95 BILLION OFFER FOR PARAMOUNT COMMUNICATIONS INC CHALLENGING VIACOM INC'S 75 BILLION AGREEMENT TO ACQUIRE PARAMOUNT AND SETTING THE STAGE FOR A 1980SSTYLE TAKEOVER BATTLE UNDER THE TERMS OF ITS OFFER HOMESHOPPING POWERHOUSE QVC BACKED BY TWO OF ITS LARGEST SHAREHOLDERS LIBERTY MEDIA CORP AND COMCAST CORP WOULD PAY PARAMOUNT SHAREHOLDERS 30 IN CASH AND 0893 SHARE OF QVC STOCK VALUED AT 50 BASED ON QVC'S CLOSING PRICE YESTERDAY OF 56 A SHARE IN OVERTHECOUNTER TRADING LET THE AUCTION BEGIN CROWED MARIO GABELLI WHOSE GABELLI FUNDS MAKE UP ONE OF PARAMOUNT'S LARGEST SHAREHOLDERS DESPITE THE HUGE PREMIUM TO THE VIACOM BID VALUED YESTERDAY AT 63175 PER PARAMOUNT SHARE INCLUDING ONLY 910 IN CASH MR GABELLI AND OTHER HOLDERS PREDICTED THE PRICE WOULD GO HIGHER BEFORE A WINNER EMERGED PARAMOUNT STARTED THIS PROCESS BY AGREEING TO BE SOLD AND THERE ARE A LOT OF PEOPLE QUEUING UP NOW SAID MR GABELLI THOUGH SOME ARBITRAGERS PREDICTED LATE YESTERDAY THAT QVC STOCK WOULD LOSE VALUE BY THIS MORNING THE HIGHER CASH PORTION WOULD STILL MAKE THE QVC OFFER MORE THAN VIACOM'S BY A CREDIBLE AMOUNT QVC'S ADVISERS SAY VIACOM'S STOCK HAS DROPPED SIGNIFICANTLY IN VALUE SINCE IT ANNOUNCED ITS OFFER MORE THAN A WEEK AGO VALUED AT 6914 PER PARAMOUNT SHARE IN A STATEMENT LAST NIGHT PARAMOUNT SAID ITS BOARD WILL EVALUATE THE QVC PROPOSAL YET THE COMPANY EMPHATICALLY DEFENDED ITS AGREEMENT WITH VIACOM OUR AGREEMENT TO MERGE OUR COMPANY WITH VIACOM REPRESENTS OUR BOARDS' CONSIDERED JUDGMENT THAT THE COMBINATION WOULD FULFILL OUR LONGTERM STRATEGIC PLAN FOR MAXIMIZING SHAREHOLDER VALUES PARAMOUNT SAID WE BELIEVE THAT A VIACOM MERGER PROVIDES THE BEST FIT FOR THE GROWTH OF OUR BUSINESSES VIACOM MEANWHILE DENIGRATED THE QVC BID SAYING THE MARRIAGE OF PARAMOUNT AND A SHOPPING SERVICE DOESN'T OFFER TO PARAMOUNT SHAREHOLDERS THE BENEFITS INHERENT IN THE COMBINATION WITH VIACOM THE COMPANY'S STATEMENT NOTED THAT VIACOM REMAINED COMMITTED TO ITS TRANSACTION WITH PARAMOUNT THE BATTLE FOR PARAMOUNT WILL PIT THE MOST POWERFUL MOGULS IN THE ENTERTAINMENT INDUSTRY AGAINST EACH OTHER IN A CONTEST FOR ONE OF THE ONLY REMAINING INDEPENDENT ENTERTAINMENT AND MEDIA COMPANIES IN THE US THE MAIN PLAYERS ARE AMONG THE MOST RUTHLESS AND STRONGWILLED IN THE INDUSTRY WITH LONG AND COMPLEX TIES SUMNER REDSTONE THE BILLIONAIRE CONTROLLING SHAREHOLDER AND CHAIRMAN OF VIACOM NOW FACING AN UPHILL BATTLE TO KEEP HIS PRIZE DEAL MARTIN S DAVIS THE PARAMOUNT CHAIRMAN WHO AGREED TO SELL HIS COMPANY TO AVOID AN UNWANTED SUITOR ONLY TO ATTRACT THE VERY SUITOR HE FEARED AND MR DILLER WHO A DECADE AGO LEFT PARAMOUNT AFTER AN ACRIMONIOUS FALLING OUT WITH MR DAVIS AND WHO NOW COULD END UP IN THE POSITION TO FIRE HIM FURTHER BEHIND THE SCENES BUT PULLING MANY OF THE STRINGS IS JOHN MALONE THE POWERFUL CHIEF EXECUTIVE OF THE NATION'S LARGEST CABLE COMPANY TELECOMMUNICATIONS INC MR MALONE WHO HIMSELF APPROACHED PARAMOUNT ABOUT A MERGER THREE YEARS AGO NOW IS BACKING MR DILLER'S QVC BID THROUGH LIBERTY MEDIA OF WHICH HE ALSO IS THE CHAIRMAN LIBERTY COMCAST AND MR DILLER TOGETHER CONTROL QVC WITH VOTING STOCK OF MORE THAN 50 THOUGH TIME WARNER INC ALSO HAS A 9 SHARE TIME WARNER ISN'T INVOLVED IN THE BID IN A 1989 INTERVIEW MR MALONE JOKED THAT HE HAD OFFERED THE PARAMOUNT CHAIRMAN 70 A SHARE FOR THE COMPANY SURE WE HAVE HAD TALKS WITH PARAMOUNT MR MALONE SAID AT THE TIME EVERYONE HAS STARTED HAVING DISCUSSIONS HE ADDED BUT WE WOULDN'T DO ANYTHING UNFRIENDLY HE COULDN'T BE REACHED YESTERDAY IN THE INTERVENING YEARS MESSRS DAVIS AND MALONE HAVE REGULARLY CONTACTED EACH OTHER TO CONFER ON POSSIBLE BUSINESS TRANSACTIONS OR INDUSTRY ISSUES BUT MR DAVIS LIKE OTHER POWERFUL MEDIA AND ENTERTAINMENT EXECUTIVES WHO HAVE DEALT WITH MR MALONE ALWAYS EXPRESSED WARINESS TOWARD HIM AND WAS UNSURE OF HIS AGENDA MR MALONE IN 1991 SPUN LIBERTY OFF FROM TCI LIBERTY AND COMCAST WERE MAJOR HOLDERS OF QVC WHEN COMCAST PRESIDENT BRIAN ROBERTS RECRUITED MR DILLER TO HEAD THE HOMESHOPPING CONCERN IN RETURN FOR A 25 MILLION INVESTMENT AND A CONTROLLING INTEREST ALONG WITH COMCAST AND LIBERTY NOW COMCAST AND LIBERTY ARE PUTTING 1 BILLION INTO HIS BID FOR PARAMOUNT MALONE AND THE ROBERTS FAMILY ARE PUTTING THEIR OWN MONEY BEHIND MR DILLER SAYS LARRY HAVERTY A FUND MANAGER AT BOSTONBASED STATE STREET RESEARCH WHICH HAS LARGE STAKES IN PARAMOUNT QVC COMCAST VIACOM AND TCI THE MORE ATTRACTIVE PRICE BEING OFFERED ASIDE THAT IS A PRETTY POWERFUL COMBINATION OF BUSINESS JUDGMENT THAT'S WEIGHING AGAINST SUMNER REDSTONE AT THIS POINT MR HAVERTY SAYS THOUGH PARAMOUNT HAS CONSISTENTLY MAINTAINED THAT ITS MERGER WITH VIACOM IS IN THE BEST LONGTERM INTEREST OF SHAREHOLDERS MESSRS GABELLI AND HAVERTY AND OTHER INSTITUTIONAL HOLDERS OF PARAMOUNT LAST NIGHT INDICATED THEIR LOYALTY IS TO THE HIGHEST BIDDER I'M NEUTRAL AS TO WHETHER REDSTONE OR DILLER IS BETTER FOR THE LONGTERM INTERESTS OF SHAREHOLDERS THOUGH DILLER DOES HAVE THE ADVANTAGE OF BEING 20 YEARS YOUNGER SAYS MR HAVERTY AS A SHAREHOLDER THOUGH IN THE NEAR TERM I HAVE TO MAXIMIZE THE WEALTH OF MY CLIENTS INDEED TAKEOVER EXPERTS SAY THE QVC BID FORCES VIACOM TO EITHER SWEETEN ITS OFFER OR LOSE PARAMOUNT SOME ANALYSTS BELIEVE MR REDSTONE WHO WHEN HE FINALLY ACQUIRED VIACOM IN 1987 FOR 34 BILLION HAD SWEETENED HIS BID THREE TIMESWILL COME THROUGH I BELIEVE REDSTONE HAS THE RESOLVE AND VIGOR TO UP THE ANTE SAID ED HATCH AN ANALYST AT UBS SECURITIES I DON'T THINK HE'S GOING TO EASILY BE DENIED THE DEAL OF A LIFETIME TO FINANCE ITS BID QVC IS EXPECTED TO USE ITS BORROWING CAPACITY OF UP TO 6 BILLION AND WOULD USE THE MORE THAN 1 BILLION IN CASH PARAMOUNT HAS IN ITS COFFERS QVC ADVISERS SAY IT COULD EASILY RAISE THE FINANCING AND SERVICE THE DEBT IT WOULD TAKE ON QVC HAS FREE CASH FLOWEARNINGS BEFORE TAXES INTEREST DEPRECIATION AND AMORTIZATION OF MORE THAN 200 MILLION THE QVC ADVISERS ALSO SAID OTHER POTENTIAL FINANCIAL PARTNERS COULD STEP IN IF NEED BE AND SAID SOME HAD ALREADY EXPRESSED INTEREST IN BUYING SOME OF PARAMOUNT'S ASSETS WALT DISNEY CO FOR EXAMPLE HAS EXPRESSED INTEREST IN BUYING PARAMOUNT'S TELEVISIONSTATION GROUP PEOPLE CLOSE TO QVC SAID DISNEY DECLINED TO COMMENT THERE IS ALSO A CHANCE THAT QVC WILL TEAM UP WITH TURNER BROADCASTING SYSTEM INC TED TURNER ITS CHAIRMAN MET OVER THE WEEKEND TO DISCUSS A POSSIBLE JOINT EFFORT MR TURNER MAY ALSO PURSUE HIS OWN BID PEOPLE CLOSE TO HIM SAID WHICH COULD FURTHER ESCALATE THE STAKES IF THE QVC BID SUCCEEDS MR DILLER WHO HEADED BOTH THE PARAMOUNT AND FOX STUDIOS AND BUILT THE FOX NETWORK FROM SCRATCH WOULD END UP IN CONTROL OF A MEDIA JUGGERNAUT BLENDING QVC'S CABLE HOMESHOPPING EMPIRE WITH PARAMOUNT'S MAJOR HOLLYWOOD STUDIO AND WORLDCLASS PUBLISHING UNIT HE COULD START A FIFTH NETWORK TO RIVAL THE FOURTH ONE HE LAUNCHED AT FOX IT IS A TWIST OF IRONY THAT HE COULD ALSO END UP SITTING IN THE OFFICE OF MR DAVIS HIS OLD ADVERSARY IN THE DAYS WHEN MR DILLER RAN PARAMOUNT PICTURES MR DILLER LEFT PARAMOUNT IN 1983 TO TAKE THE TOP POST AT FOX INC THEN OWNED BY OIL BILLIONAIRE MARVIN DAVIS BUT HE HAD CONSTANTLY STRUGGLED WITH MARTIN DAVIS AT PARAMOUNT THEN CALLED GULF & WESTERN OVER ISSUES OF CONTROL AND CREDIT FOR THE PARAMOUNT STUDIO'S SUCCESS THE TWO EXECUTIVES EXPRESSED FROSTY CONTEMPT TOWARD EACH OTHER FOR YEARS AFTER MR DILLER RESIGNED FOLLOWED OUT THE DOOR BY MOST OF HIS MANAGEMENT TEAM AT THE STUDIO THE RELATIONSHIP BEGAN TO THAW A BIT TWO YEARS AGO BUT THEN LAST SUMMER MR DILLER EXPRESSED INTEREST IN PARAMOUNT THOUGH MR DAVIS SAID LAST WEEK THAT MR DILLER NEVER APPROACHED HIM ABOUT ANY DEAL JUST THE SUGGESTION OF IT APPEARS TO HAVE SPURRED MR DAVIS INTO THE ARMS OF VIACOM AFTER FOUR YEARS OF ONAGAIN OFFAGAIN TALKS WITH MR REDSTONE FOR MR DAVIS MEANWHILE THE QVC OFFER THROWS INTO TURMOIL THE MARRIAGE WITH VIACOM THOUGH IT IS FRIENDLY AND LEAVES HIM AS CHIEF EXECUTIVE UNDER MR REDSTONE THE DEAL WAS FINALLY A HASTILYAGREED UPON AFFAIR THAT SOME LIKEN TO A SHOTGUN MARRIAGE THOUGH THE PROSPECT OF MR DILLER GETTING PARAMOUNT IS A HUMILIATING ONE FOR MR DAVIS HE IS BETWEEN A ROCK AND A HARD PLACE THE QVC OFFER PUTS HIM IN EXACTLY THE SAME POSITION HE CREATED BY MAKING A 200ASHARE BID FOR TIME INC IN 1989 IN AN EFFORT TO BREAK UP ITS FRIENDLY MERGER WITH WARNER COMMUNICATIONS INC TIME THWARTED PARAMOUNT'S OFFER BY TAKING ON 14 BILLION IN DEBT TO ACQUIRE WARNER IN THE COURT BATTLE THAT ENSUED TIME AND WARNER SUCCESSFULLY PLEADED THE CASE THAT THEIR MERGER WAS IN THE BEST INTERESTS OF SHAREHOLDERS MR DAVIS WHO BUILT HIS REPUTATION AS A SHAREHOLDER ADVOCATE IS MAKING THE SAME CASE NOW FOR THE VIACOM MERGER HE MAINTAINS IT IS THE BEST DEAL FOR SHAREHOLDERS BECAUSE ITS ESTABLISHES A CABLE AND ENTERTAINMENT POWERHOUSE POISED FOR BURGEONING GROWTH IN THE MULTIMEDIA 500CHANNEL WORLD OF THE FUTURE IN THE TIME WARNER CASE THE DELAWARE SUPREME COURT UPHELD A LOWERCOURT DECISION THAT BROADLY AFFIRMED THE POWER OF CORPORATE DIRECTORS TO RUN COMPANIES AS THEY SEE FIT WITHOUT SEEKING A SHAREHOLDER VOTE BUT TIME AND WARNER HAD AGREED TO A STOCK MERGER WHILE PARAMOUNT IS BEING ACQUIRED BY VIACOM AND DOES REQUIRE A VOTE IN THE WAKE OF THE TIME WARNER RULING SELLING A COMPANY WAS THOUGHT TO BE THE ONLY EXCEPTION TO THAT BUSINESS JUDGMENT RULE THAT SAID DIRECTORS WERE FREE TO PURSUE A STRATEGY OF INCREASING A COMPANY'S VALUE OVER THE LONG TERM AND AREN'T REQUIRED TO SEEK THE HIGHEST SHORTTERM STOCK PRICE MR DAVIS HOWEVER MUST ACT IN THE BEST INTERESTS OF HIS HOLDERS BY TAKING THE HIGHEST PRICE ADVISERS IN THE QVC CAMP SAY THEY ADD THAT NO MATTER WHAT LEGAL POSITION VIACOM AND PARAMOUNT TAKE TO TRY TO BLOCK THE QVC BID THERE ARE NO MAJOR LEGAL OR ANTITRUST ISSUES THAT WOULD OVERRIDE THE OBLIGATION TO CONSIDER A HIGHER OFFER WHATEVER PARAMOUNT'S REASONING IS FOR THE VIACOM MERGER THEY ADD MR DAVIS ESSENTIALLY PUT HIS COMPANY IN PLAY BY AGREEING TO THE SALE SINCE THE PARAMOUNTVIACOM MERGER REQUIRES A VOTE OF BOTH COMPANIES' SHAREHOLDERS THERE'S NO WAY THE VIACOM DEAL CAN GET DONE WITH SUCH A SIGNIFICANT DIFFERENCE IN THE QVC BID SAYS ONE PERSON CLOSE TO QVC AS FOR PARAMOUNT'S POSITION THAT THE COMBINATION WITH VIACOM WOULD PRODUCE THE BEST LONGTERM VALUE FOR HOLDERS THIS PERSON SAYS QVC CAN MAKE THE SAME ARGUMENT AND ADDS WHAT COUNTS TODAY IS MONEY MR DAVIS'S AGREEMENT TO MERGE WITH VIACOM AND THE FIGHT SHAPING UP FOR CONTROL OF PARAMOUNT HIGHLIGHT A DILEMMA THAT BEGAN TROUBLING PARAMOUNT EVER SINCE THE FAILED BID FOR TIME MR DAVIS HAS TALKED TO VIRTUALLY EVERY MAJOR PLAYER IN THE ENTERTAINMENT INDUSTRY ABOUT A FRIENDLY MERGER BUT TALKS ALWAYS FALTERED OVER PRICE OR CONTROL MR DAVIS DIDN'T WANT TO OVERPAY FOR ANOTHER COMPANY AND REFUSED TO SELL AT WHAT HE CONSIDERED LESS THAN A PREMIUM FOR SHAREHOLDERS HE ALSO WANTED TO STAY IN THE DRIVER'S SEAT IN ANY MERGER A TOUGH POSITION TO TAKE WITH COMPANIES SUCH AS TURNER BROADCASTING AND TCI AND HE FACED UPHILL BATTLES TO MERGE WITH A NETWORK SUCH AS CAPITAL CITIES/ABC OR GENERAL ELECTRIC CO'S NBC UNIT THOUGH A NETWORK WITH CABLE INTERESTS SUCH AS ABC OR NBC MIGHT HAVE BEEN A GOOD STRATEGIC FIT FOR PARAMOUNT REGULATORY HURDLES MADE JOINT OWNERSHIP OF A MOVIE STUDIO AND A NETWORK ALMOST IMPOSSIBLE MR DAVIS ALSO LOOKED AT VARIOUS RECORD COMPANIES MR DAVIS HAS WON HIGH MARKS ON WALL STREET FOR SLIMMING DOWN THE OLD GULF & WESTERN INTO THE STREAMLINED PARAMOUNT COMMUNICATIONS BUT HE HAS BEEN UNABLE TO BOOST THE COMPANY'S STOCK PRICE FOR THE LAST THREE YEARS AS WALL STREET WAITED FOR A BIG STRATEGIC DEAL MR DAVIS SPENT ABOUT HALF OF A 2 BILLIONPLUS CASH HOARD ON STOCK REPURCHASES OF SMALLER ACQUISITIONS SUCH AS BROADCASTING PROPERTIES PUBLISHING COMPANIES AND A MIDSIZE THEMEPARK BUSINESS AT THE PARAMOUNT STUDIO MEANWHILE THERE HAS BEEN A SUCCESSION OF MANAGEMENT CHANGES UNDER MR DAVIS TWO REGIMES HAVE COME AND GONE SINCE MR DILLER LEFT LEADING TO A FALTERING IN DIRECTION AND A SLOWDOWN IN PRODUCTION THOUGH IT HAS A STRONG MOTIONPICTURE LIBRARY IMPRESSIVE SEQUEL FRANCHISES AND A HUGE TELEVISIONPRODUCTION BUSINESS PARAMOUNT PICTURES HASN'T CONSISTENTLY ENJOYED THE SUCCESS IT HAD WHEN MR DILLER WAS RUNNING IT EVEN MR REDSTONE HAS ACKNOWLEDGED IN RECENT INTERVIEWS THAT PARAMOUNT IS A COMPANY WITH WONDERFUL ASSETS WHOSE RECENT PERFORMANCE HAS BEEN NOT VERY EXCITING QVC MADE ITS ANNOUNCEMENT YESTERDAY AFTER THE STOCK MARKET CLOSED IN A LETTER TO MR DAVIS MR DILLER BEGINNING DEAR MARTIN PROPOSED A COMBINATION OF PARAMOUNT AND QVC ON TERMS FAR MORE ATTRACTIVE TO PARAMOUNT STOCKHOLDERS THAN THE TRANSACTION PROPOSED WITH VIACOM HE NOTED THE PROPOSAL OFFERED A PREMIUM OF ABOUT 149 OVER PARAMOUNT'S CLOSING PRICE YESTERDAY AND 266 OVER THE 63175PERPARAMOUNTSHARE VALUE OF THE VIACOM TRANSACTION MR DILLER ADDED THAT QVC'S FINANCIAL ADVISER ALLEN & CO BELIEVES THE REACTION OF THE FINANCIAL COMMUNITY TO THE COMBINATION OF PARAMOUNT AND QVC WILL BE ENTHUSIASTIC AND THE MARKETS WILL READILY RECOGNIZE OUR COMPLIMENTARY STRENGTHS AND THE OPPORTUNITY FOR FUTURE GROWTH IN THE COMBINED COMPANY MR DILLER ALSO OUTLINED THE LIBERTY AND COMCAST PLAN TO EACH PURCHASE 500 MILLION OF QVC CONVERTIBLE PREFERRED STOCK CONVERTIBLE TO QVC COMMON AT 6545 PER SHARE ALTHOUGH IT WASN'T IN THE COMPANY ANNOUNCEMENT YESTERDAY LIBERTY AND COMCAST SAID THE PREFERRED STOCK MAY BE REDEEMED WHEN QVC SHARES REACH 100 PER SHARE SOME ON WALL STREET NOTE THAT QVC'S STOCK HAS BEEN HYPERINFLATED SINCE MR DILLER CAME ON BOARD WITH EXPECTATIONS THAT HE WOULD VASTLY EXPAND ITS BUSINESS INTO NEW PROGRAMMING NETWORKS AND POSSIBLY ACQUIRE A STUDIO QVC'S STOCK SOARED AS HIGH AS 73 A SHARE EARLIER THIS YEAR QVC EARLIER THIS YEAR PROPOSED TO MERGE WITH RIVAL HOME SHOPPING NETWORK INC IN A 14 BILLION TRANSACTION BUT PEOPLE CLOSE TO QVC INDICATED THAT DEAL WILL PROBABLY BE POSTPONED PETER BARTON PRESIDENT AND CHIEF EXECUTIVE OF LIBERTY SAID THAT COMBINING PARAMOUNT AND QVC CAN ONLY RESULT IN A BUSINESS SOLIDLY POSITIONED AND POISED TO MEET THE CHALLENGES OF TOMORROW AND COMCAST PRESIDENT BRIAN ROBERTS SAID A MERGED QVC AND PARAMOUNT WOULD BE UNIQUELY POSITIONED TO BENEFIT FROM THE CONVERGENCE OF CABLE ENTERTAINMENT TELEPHONE AND MULTIMEDIA TRENDS MR GABELLI THE FUND MANAGER AND PARAMOUNT HOLDER PREDICTED THE OFFER THAT WILL FINALLY BUY PARAMOUNT ISN'T ON THE TABLE YET WE'RE A LONG WAY FROM THE FINAL VERSION HE SAID 9309210118 930921 SMALL STOCK FOCUS SMALL STOCKS TAKE A MODEST TUMBLE AMID FEARS OF RISING INTEREST RATES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS DRIFTED MODESTLY LOWER AS INVESTORS WORRIED ABOUT RISING INTEREST RATES THE BOND MARKET GOT SLOPPY AND APPARENTLY LATE IN THE AFTERNOON HEAVY COMPUTER PROGRAM SELLING KNOCKED DOWN MOST OF THE STOCK MARKET SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT LEHMAN BROTHERS FIRST THE BIG STOCKS WERE HIT AND THEN THE SMALLER ONES BECAME WEAKER BUT MOST OF THE DAY WAS FAIRLY QUIET THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES FELL 012 OR 005 TO 24583 TWO NEW STOCKS SLIPPED FROM THEIR INITIAL GAINS ANTEC DROPPED 1 1/2 TO 22 1/2 AFTER CLOSING AT 24 FRIDAY ITS FIRST TRADING DAY ANTEC A UNIT OF ITEL CORP SUPPLIES EQUIPMENT FOR THE CABLETELEVISION INDUSTRY LAST THURSDAY THE COMPANY PRICED 815 MILLION SHARES AT 18 THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE ELSEWHERE CENTOCOR JUMPED 1 TO 10 1/4 THE BEATENDOWN STOCK HAS RISEN FROM ITS 52WEEK LOW OF 5 1/4 BUT IT STILL IS FAR BELOW ITS HIGH OF 19 3/4 LATE FRIDAY THE COMPANY ANNOUNCED THAT IT WILL ENTER INTO AN ALLIANCE WITH UK DRUG GIANT WELLCOME TO DEVELOP ONCOLOGY PRODUCTS INCLUDING CENTOCOR'S CANCERTHERAPY DRUG PANOREX WHICH HAS COMPLETED PHASE III CLINICAL TRIALS HAMBRECHT & QUIST BIOTECHNOLOGY ANALYST WOLE M FAYEMI UPGRADED HIS INVESTMENT RATING ON CENTOCOR TO STRONG BUY FROM BUY OAK INDUSTRIES NYSE FELL 3 1/4 TO 21 THE NEW YORK BROKERAGE FIRM ADAMS HARKNESS & HILL CUT ITS INVESTMENT RATING TO HOLD FROM BUY AND LOWERED ITS EARNINGS ESTIMATES THE FIRM LOWERED ITS 1993 EARNINGS ESTIMATE TO 120 FROM 130 A SHARE AND ITS 1994 ESTIMATE TO 140 FROM 160 A SHARE THE COMPANY SAID INVESCO AND SECOND CONSOLIDATED TRUST HAVE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DURING THE PAST MONTH TO SELL UP TO THREE MILLION SHARES CASINO DATA SYSTEMS LEAPED 3 3/4 TO 21 1/2 THE LAS VEGAS GAMBLING CONCERN SAID IT SIGNED A 12 MILLION CONTRACT WITH GRAND CASINOS TO INSTALL OASIS II SLOTACCOUNTING AND PLAYERTRACKING SYSTEMS IN 1749 MACHINES AT GRAND CASINOBILOXI IN BILOXI MISS CASINO DATA SAID INSTALLATION HAS STARTED AND COMPLETION IS SCHEDULED FOR EARLY DECEMBER CLEAN HARBORS TUMBLED 1 1/2 TO 7 1/4 AFTER TRADING CLOSED ON FRIDAY THE QUINCY MASS COMPANY SAID IT EXPECTS PERSHARE EARNINGS FOR THE THIRD QUARTER TO BE BELOW ANALYSTS' ESTIMATES OF A RANGE OF 10 CENTS TO 16 CENTS THE COMPANY SAID RESULTS FOR JULY AND AUGUST SHOWED THAT INTENSIFYING PRICE COMPETITION FROM COMPETING WASTE DISPOSAL COMPANIES AND ENVIRONMENTAL MAINTENANCE FIRMS HAD REDUCED THE COMPANY'S RESULTS FOR THE 1992 THIRD QUARTER THE COMPANY EARNED 17 CENTS A SHARE REHABILITY TUMBLED 3 1/2 TO 9 1/4 JC BRADFORD & CO ANALYST ANDY MAY DOWNGRADED THE STOCK TO ACCUMULATE FROM BUY THE ANALYST SAID HE LOWERED HIS 1993 EARNINGS ESTIMATE TO 64 CENTS A SHARE FROM 80 CENTS AND HIS 1994 ESTIMATE IS NOW DOWN TO 84 CENTS FROM 105 EARNINGS IN 1992 FOR THE COMPANY WHICH CHANGED ITS NAME FROM NATIONAL REHABILITATION CENTERS IN MAY AFTER MERGING WITH HEALTHFOCUS AREN'T AVAILABLE LATE ON FRIDAY REHABILITY BASED IN NASHVILLE TENN SAID IT EXPECTS THIRDQUARTER EARNINGS TO BE LOWER THAN ORIGINALLY EXPECTED FIRST PACIFIC NETWORKS TUMBLED 3 1/4 TO 17 1/4 AS INVESTORS REACTED TO NEWS OF CHANGES IN THE COMPANY'S COMPLEX RELATIONSHIP WITH ATLANTA UTILITY SOUTHERN CO SOUTHERN SIGNED A LETTER OF INTENT IN MARCH TO ACQUIRE A 10 EQUITY STAKE IN FIRST PACIFIC AND TO BUY TECHNOLOGY LICENSES VALUED AT 185 MILLION FOR FIRST PACIFIC'S POWERVIEW PRODUCT BUT LATE FRIDAY SOUTHERN SAID IT SIGNED A LETTER OF INTENT WHICH REPLACES THE PRIOR AGREEMENT TO BUY 3500 UNITS OF FIRST PACIFIC NETWORKS' POWERVIEW PRODUCT WITH AN OPTION TO PURCHASE 5000 MORE FOR TESTING IN THE UTILITY'S SERVICE TERRITORY SOUTHERN SAID IT WILL PAY AN INITIAL LICENSE FEE INSTALLMENT OF 5 MILLION SOUTHERN SAID IT WILL RECEIVE WARRANTS EXERCISABLE WITHIN 48 MONTHS TO BUY AN EQUITY INTEREST OF UP TO 10 IN FIRST PACIFIC AND SAID THAT IN ADDITION SOUTHERN WILL RECEIVE AN INITIAL 25 SHARE OF REVENUE FROM WORLDWIDE SALES AND LICENSE FEES FOR POWERVIEW 9309210117 930921 ECONOMY THREE CITIES BATTLE FOR TWO AIR ROUTES CIVIC BOOSTERISM HITS UNUSUAL HEIGHTS BY HELENE COOPER AND DANIEL PEARL STAFF REPORTERS OF THE WALL STREET JOURNAL THREE US CITIES ARE ROLLING OUT THEIR HEAVIEST ARTILLERY EVERYTHING FROM PREENING POLITICIANS TO COMMENTARIES ON COUNTRY MUSIC IN A HEATED AND UNUSUAL BATTLE OVER AIRLINE ROUTES THE CITIES NASHVILLE TENN RALEIGHDURHAM NC AND SALT LAKE CITY ARE FIGHTING FOR TWO ROUTES TO LONDON BEING RELINQUISHED BY USAIR NORMALLY AIRLINES CAN BUY ROUTES FROM OTHER AIRLINES AND CITIES DON'T OWN ROUTES THEMSELVES IN THE CASE OF NASHVILLE HOWEVER THE CITY ITSELF IS BIDDING OFFERING THE USAIR GROUP UNIT 5 MILLION RALEIGH AND SALT LAKE CITY ARE LOBBYING HEAVILY FOR THE APPROVAL OF AIRLINE APPLICATIONS THAT WOULD RESULT IN THE AIRLINES OWNING THE ROUTES IN THEIR CITIES DELTA AIR LINES ATLANTA HAS FILED FOR ONE WHICH THE AIRLINE WOULD MOVE TO SALT LAKE CITY AMR CORP'S AMERICAN AIRLINES HAS FILED FOR BOTH SAYING IT WOULD MOVE THE ROUTES TO NASHVILLE AND RALEIGHDURHAM THE MANEUVERINGS BEGAN LAST SPRING AFTER THE FEDERAL GOVERNMENT APPROVED LONDONBASED BRITISH AIRWAYS PLC'S 300 MILLION PURCHASE OF A MAJOR STAKE IN USAIR AS PART OF THE DEAL USAIR AGREED TO RELINQUISH ITS THREE LONDON ROUTES ORIGINATING IN BALTIMORE CHARLOTTE NC AND PHILADELPHIA BRITISH AIRWAYS ALREADY HAS FLIGHTS TO LONDON FROM THOSE CITIES THE DEPARTMENT OF TRANSPORTATION IS EXPECTED TO MAKE A DECISION THIS FALL IT HAS SEVERAL OPTIONS IT CAN AWARD THE ROUTES TO THE AIRLINES FOR FREE IN WHICH CASE NASHVILLE STILL HAS A SHOT AT GETTING LONDON SERVICE IF THE AMERICAN APPLICATION FOR NASHVILLE IS AWARDED OR THE DOT COULD ALLOW USAIR TO SELL THE CHARLOTTE ROUTE TO NASHVILLE AND AWARD THE OTHER ROUTE TO EITHER AMERICAN IN RALEIGHDURHAM OR DELTA IN SALT LAKE CITY THE NASHVILLE STRATEGY MEANWHILE HAS CAUGHT THE ATTENTION OF OTHER CITIES WHICH ARE CONSIDERING MAKING SIMILAR BIDS IF IT SUCCEEDS WHY NOT ASKS CAROL MARTIN SPOKESWOMAN FOR THE NASHVILLE AIRPORT AUTHORITY WE DECIDED THAT IF THE DEPARTMENT OF TRANSPORTATION WAS GOING TO ALLOW USAIR TO SELL THE ROUTES WE DIDN'T WANT TO BE LEFT OUT OF THE GAME NASHVILLE IF IT WINS PLANS TO LEASE THE ROUTE TO AMERICAN WHICH OPERATES A HUB THERE BUT NASHVILLE WOULD BE BUYING AN ASSET WHOSE VALUE WOULD DIMINISH IF THE US SUCCEEDS IN TALKS ALREADY UNDER WAY IN WINNING WIDER ACCESS TO THE UK FOR US CARRIERS REGULATORS ARE LIKELY TO QUESTION WHETHER IT'S FAIR FOR LOCAL TAXPAYERS IN NASHVILLE TO PAY FOR SOMETHING THE FEDERAL GOVERNMENT ORIGINALLY AWARDED FOR FREE INDEED THE CLINTON ADMINISTRATION CONSIDERED ENDING THE ENTIRE PRACTICE OF ROUTESELLING BY AIRLINES EARLY THIS YEAR BUT INDUSTRY OBJECTIONS SO FAR HAVE DISSUADED FEDERAL OFFICIALS FROM BANNING THE PRACTICE THE CURRENT CONTEST HAS PROMPTED A GOOD DEAL OF CIVIC BOOSTERISM ACCOMPANIED BY SOME INVENTIVE CLAIMS ACCORDING TO NASHVILLE'S FILING WITH THE DOT THE ENTIRE US ECONOMY WILL BENEFIT IF THE TENNESSEE CITY GETS A ROUTE BECAUSE HAVING NONSTOP AIR SERVICE BETWEEN THE CENTER OF THIS MUSIC INDUSTRY IN THE US NASHVILLE AND THE CENTER OF THE MUSIC INDUSTRY IN EUROPE LONDON WILL CERTAINLY HAVE A LARGE STIMULATING EFFECT ON US EXPORTS SALT LAKE CITY MIXES RELIGION AND SPORTS IN ITS PITCH A UTAHLONDON ROUTE ACCORDING TO CITY LEADERS WOULD HELP MORMONS SPREAD THEIR WORD IN ENGLAND AS WELL AS BOLSTER A LOCAL COMMITTEE'S EFFORTS TO BRING THE 2002 WINTER OLYMPICS TO UTAH FOR GOOD MEASURE THE STATE'S GOVERNOR IN A LETTER TO THE DOT NOTED THAT 40 OF UTAHANS ARE OF BRITISH ANCESTRY ON A MORE SUBDUED NOTE RALEIGHDURHAM POINTS TO THE POTENTIAL FOR INCREASED TRADE BETWEEN NEARBY RESEARCH TRIANGLE PARK AND EUROPE NASHVILLE THE MOST AGGRESSIVE OF THE THREE CITIES BY A NOSE FIRED THE FIRST SALVO IN APRIL WHEN IN AN UNPRECEDENTED MOVE THE CITY OFFERED USAIR 5 MILLION FOR THE CHARLOTTE ROUTE AT THAT POINT THE DOT JUMPED IN DECIDING TO HOLD AN OPEN COMPETITION IN JULY THE DEPARTMENT GAVE AMERICAN AIRLINES THE RIGHT TO TAKE OVER THE PHILADELPHIALONDON ROUTE WHICH COULDN'T BE MOVED UNDER THE CURRENT AVIATION AGREEMENT BETWEEN THE US AND THE UK THE REMAINING TWO ROUTES BALTIMORELONDON AND CHARLOTTELONDON ARE THE ONES UP FOR GRABS AND CAN BE MOVED TO ANY US CITY UNDER THE TREATY TO SALT LAKE CITY AND RALEIGHDURHAM IT SEEMS AS IF NASHVILLE WITH TWO CHANCES AT RECEIVING A ROUTE HAS A LEG UP AND NEITHER CITY IS TOO HAPPY RALEIGH TRIED TO COUNTER NASHVILLE'S MOVE BY PASSING A PLATE AROUND THE BUSINESS COMMUNITY TO RAISE 5 MILLION TO PAY USAIR FOR THE BALTIMORE ROUTE PROVIDED THE DOT AGREED BUT A RALEIGHLONDON ROUTE WOULD COMPETE WITH BRITISH AIRWAYS' CHARLOTTELONDON ROUTE SO USAIR TURNED RALEIGH DOWN IN THE END THE WINNERS MAY SIMPLY WIND UP BEING THE CITIES WITH THE MOST CLOUT IN WASHINGTON ROUTE AWARDS AFTER ALL ARE NOTORIOUSLY POLITICAL SAYS JOHN BRANTLEY DIRECTOR OF THE RALEIGHDURHAM AIRPORT AUTHORITY AND THERE NASHVILLE WITH A LOCAL BOY AS VICE PRESIDENT MAY ONCE AGAIN HAVE THE EDGE 9309210116 930921 INTERNATIONAL ROMANIAN JOBLESS RATE UP FRANKFURT ROMANIA'S UNEMPLOYMENT RATE STOOD AT 91 OF THE WORK FORCE AS OF YESTERDAY THE STATE NEWS AGENCY ROMPRES REPORTED CITING THE MINISTRY OF LABOR AND SOCIAL PROTECTION THAT WAS UP FROM A JOBLESS RATE OF 88 IN LATE AUGUST THE MINISTRY REPORTED THAT THE NUMBER OF UNEMPLOYED PERSONS WAS 1039324 UP FROM 1025073 IN LATE AUGUST 9309210114 930921 INTERNATIONAL EAST JAPAN RAIL STOCK TOKYO THE TOTAL NUMBER OF SHARES INVESTORS SOUGHT TO BUY IN EAST JAPAN RAILWAY WAS 29 TIMES GREATER THAN THE NUMBER TO BE PUT ON THE MARKET THE JAPAN NATIONAL RAILWAYS SETTLEMENT CORP SAID JNR SETTLEMENT WHICH HOLDS THE SHARES OF THE SIX REGIONAL PASSENGER RAILROADS THAT MADE UP THE FORMER JAPAN NATIONAL RAILWAYS SYSTEM SAID IT RECEIVED APPLICATIONS FOR 40050000 SHARES AGAINST THE 1400000 IT IS TO PARCEL OUT TO THE INVESTORS BY LOTTERY BROKERAGE HOUSES CLOSED THEIR APPLICATION LISTS SEPT 10 AND JR EAST IS SET TO BE LISTED ON THE FIRST SECTION OF THE TOKYO STOCK EXCHANGE OCT 26 9309210113 930921 INTERNATIONAL MEXICO'S TRADE DEFICIT NARROWS MEXICO CITY MEXICO'S COMMERCIAL TRADE DEFICIT IN JULY NARROWED 155 FROM A YEAR EARLIER THE FINANCE MINISTRY SAID THE FINANCE MINISTRY DIDN'T PROVIDE ACTUAL FIGURES BUT BASED ON IMPORT AND EXPORT DATA THE JULY DEFICIT AMOUNTED TO 137 BILLION IMPORTS TOTALED 552 BILLION UP ONLY 07 THAT IS THE SMALLEST MONTHONMONTH INCREASE REGISTERED THIS YEAR EXPORTS MEANTIME TOTALED 415 BILLION A 75 INCREASE NONPETROLEUM EXPORTS WERE UP 127 FOR THE SECOND CONSECUTIVE MONTH NONMAQUILADORA MANUFACTURING EXPORTS GREW AT A GREATER PACE THAN MAQUILADORA EXPORTS MAQUILADORAS ARE FOREIGNOWNED MANUFACTURERS NEAR THE US BORDER THAT PRODUCE ALMOST EXCLUSIVELY FOR EXPORT 9309210112 930921 PEPSICO PLANS TO FORM SUPERBOTTLER' IN LATIN AMERICA TO BOLSTER SALES THERE BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC CONTINUING ITS AGGRESSIVE EXPANSION IN LATIN AMERICA SAID IT WILL FORM A SUPERBOTTLER IN SOUTH AMERICA AND SPEND ABOUT 500 MILLION IN THE REGION IN THE NEXT FIVE YEARS THE BEVERAGE AND FOOD COMPANY SAID ITS OVERSEAS UNIT PEPSICOLA INTERNATIONAL AND THE SUBSIDIARY'S ARGENTINE FRANCHISEE BUENOS AIRES EMBOTELLADORA SA OR BAESA REACHED AN AGREEMENT IN WHICH PEPSI'S COMPANYOWNED BOTTLING OPERATIONS IN CHILE AND URUGUAY WILL BE MERGED WITH BAESA IN ADDITION THE ARGENTINE FRANCHISEE WILL RECEIVE 35 MILLION FROM PEPSICO IN TURN PEPSICOLA INTERNATIONAL WILL RECEIVE A 26 EQUITY STAKE IN BAESA THE AGREEMENT MARKS THE SECOND MAJOR THRUST PEPSI HAS MADE IN LATIN AMERICA THIS YEAR IN MARCH THE PURCHASE NY COMPANY SAID IT WOULD INVEST 750 MILLION OVER THE NEXT FIVE YEARS IN MEXICO WHOSE HUGE BEVERAGE MARKET IS SECOND ONLY TO THAT OF THE US THE CONSOLIDATION WITH BAESA WHOSE MANAGEMENT HAS RAPIDLY DEVELOPED THE ARGENTINE MARKET FOR PEPSI IS PART OF PEPSI'S GLOBAL STRATEGY TO INCREASE BOTH THE EFFICIENCY OF ITS BOTTLING OPERATIONS AND ITS PENETRATION OF OVERSEAS MARKETS IN PARTICULAR PEPSI SAID IT HOPES THE NEW ARRANGEMENT WILL BOOST ITS PRESENCE IN BRAZIL THE WORLD'S THIRDLARGEST SOFTDRINK MARKET IN WHICH PEPSI HAS ONLY AN 8 SHARE PEPSI'S CURRENT BOTTLING OPERATIONS IN BRAZIL WILL BE FOLDED INTO THE BAESA OPERATION AS BOTTLING AGREEMENTS WITH BRAZILIAN FRANCHISES EXPIRE OVER THE NEXT THREE YEARS THE COMPANY SAID THE BULK OF THE 500 MILLION INVESTMENT IN SOUTH AMERICA WILL BE SPENT IN BRAZIL PRIMARILY ON PLANT IMPROVEMENTS TRUCKS AND OTHER EQUIPMENT PURCHASES ONCE ALL THE BRAZILIAN PIECES FALL INTO PLACE IN 1996 THE SOUTH AMERICAN OPERATION WILL BE PEPSI'S LARGEST BOTTLING NETWORK OUTSIDE THE US ACCORDING TO A COMPANY SPOKESMAN IN 2001 PEPSI WILL BEGIN TO ACQUIRE MAJORITY VOTING CONTROL OVER BAESA BEVERAGE INDUSTRY ANALYSTS SAID THE VENTURE IS CONSISTENT WITH PEPSI'S PLAN TO CONCENTRATE MORE EFFORTS ON EXPANDING THE INTERNATIONAL SIDE OF ITS BUSINESS ABOUT 14 OF PEPSICO'S BEVERAGE EARNINGS COME FROM OVERSEAS OPERATIONS LARRY ADELMAN A DEAN WITTER ANALYST SAID BAESA HAS BEEN SUCCESSFUL AT INCREASING MARKET SHARE IN ARGENTINA WHERE IT HAS BEEN THE EXCLUSIVE PEPSI BOTTLER FOR THE PAST FOUR YEARS WITHIN THAT TIME PEPSI'S MARKET SHARE HAS GROWN TO 39 FROM 20 FOR FISCAL 1992 BAESA HAD ABOUT 208 MILLION IN SALES WHAT THEY'RE DOING IS TAKING GOOD MANAGEMENT GIVING THEM MORE TERRITORIES TO RUN AND GROWING THE BUSINESS AT A MUCH FASTER RATE MR ADELMAN SAID ALTHOUGH BRAZIL IS THE THIRDLARGEST SOFTDRINK MARKET IN THE WORLD PERCAPITA CONSUMPTION IS LOW IN COMPARISON WITH MANY OTHER COUNTRIES FOR EXAMPLE THE AVERAGE AMERICAN CONSUMES 750 SERVINGS OF SOFT DRINKS IN ONE YEAR IN BRAZIL THE AVERAGE NUMBER OF SERVINGS IS ONLY 137 EMANUEL GOLDMAN A PAINEWEBBER ANALYST SAID THAT WITH THIS NEW ARRANGEMENT PEPSI WILL GAIN BROADER DISTRIBUTION OF ITS PRODUCTS AND KEEP PRICES AFFORDABLE BECAUSE OF IMPROVED EFFICIENCY HE ADDED THAT BECAUSE CONSUMPTION LEVELS IN SOUTH AMERICA ARE STILL LOW PEPSI'S ACTIVITY WILL ATTRACT NEW CONSUMERS AND ULTIMATELY INCREASE THE TOTAL SIZE OF THE SOUTH AMERICAN BEVERAGE MARKET IN EMERGING MARKETS YOU HAVE GROWTH OF THE MARKET AS OPPOSED TO TAKING SHARE AWAY FROM COMPETITORS HE SAID PEPSICO SHARES CLOSED YESTERDAY AT 40 DOWN 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309210111 930921 MEDIA VISION EARNINGS OUTLOOK FREMONT CALIF MEDIA VISION TECHNOLOGY INC ONE OF THE BENEFICIARIES OF THE NASCENT BOOM IN MULTIMEDIA COMPUTER APPLICATIONS SAID PERSHARE EARNINGS FOR THE THIRD QUARTER ARE LIKELY TO JUMP ABOUT 10FOLD FROM THE YEAREARLIER QUARTER THE PROJECTION WAS MADE IN A REGISTRATION STATEMENT FOR A PLANNED OFFERING OF 75 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES THE COMPANY WHICH MAKES PRODUCTS THAT ADD ENHANCED SOUND CAPABILITY TO PERSONAL COMPUTERS SAID IT EXPECTS PERSHARE EARNINGS OF 30 CENTS TO 33 CENTS COMPARED WITH THREE CENTS A YEAR EARLIER SALES ARE LIKELY TO REACH 57 MILLION TO 62 MILLION COMPARED WITH ABOUT 18 MILLION IN THE 1992 THIRD QUARTER IT SAID 9309210110 930921 MARKETING LINKING PRODUCTS TO BREASTCANCER FIGHT HELPS FIRMS BOND WITH THEIR CUSTOMERS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL IT SOUNDS LIKE THE PRESCRIPTION FOR A MARKETING DISASTER LINK YOUR PRODUCT TO A DISFIGURING AND POTENTIALLY FATAL DISEASE THAT EVOKES FEAR IN MOST WOMEN YET FOR LEADING COSMETICS AND FASHION COMPANIES THE ISSUE OF BREAST CANCER IS PROVING TO BE A POWERFUL SELLING TOOL MAJOR MARKETERS ARE SUDDENLY JOCKEYING TO ATTACH THEIR NAMES TO THE BREASTCANCER AWARENESS MOVEMENT THEIR CORPORATE ADVOCACY IS ROOTED IN MORE THAN ALTRUISM COMPANIES ARE FINDING THAT THE PINK RIBBON A SYMBOL OF BREASTCANCER AWARENESS PATTERNED AFTER THE RED AIDS RIBBON CAN HELP THEM CONNECT WITH FEMALE CUSTOMERS AVON PRODUCTS INC'S BREASTCANCER PROGRAM IS ONE OF THE MOST VISIBLE CAUSEMARKETING EFFORTS EVER UNDERTAKEN BY A FORTUNE 500 COMPANY THIS YEAR THE FIRST IN A FIVEYEAR PLAN ITS 415000 US AVON LADIES WILL BE ARMED WITH PINKRIBBON PINS AND 15 MILLION BROCHURES AS WELL AS CORPORATE ENCOURAGEMENT TO TALK TO CUSTOMERS ABOUT THE DISEASE AVON HAS PLENTY OF COMPANY ESTEE LAUDER INC SALESCLERKS ARE HANDING OUT PINK RIBBONS AT 2000 OF ITS RETAIL OUTLETS WITH REVLON'S BLESSING AND FINANCIAL BACKING SUPERMODELS LAUREN HUTTON AND VERONICA WEBB ARE TOURING THE COUNTRY GATHERING SIGNATURES ON A PETITION DEMANDING A NATIONAL BREASTCANCER AGENDA SARA LEE CORP'S HANES HOSIERY UNIT IS WRAPPING STOCKINGS AROUND CARDS THAT EXPLAIN HOW TO DO BREAST SELFEXAMINATIONS IN THE SHOWER SHOE MARKETER NINE WEST GROUP INC IS DISTRIBUTING PINK RIBBONS AND PAMPHLETS IN DEPARTMENT STORES AND WILL EVEN MAKE DOCTORS AVAILABLE AT SOME BREASTCANCER PATIENTS AND THEIR ADVOCACY GROUPS GENERALLY SUPPORT THE CAMPAIGNS THOUGH SOME WORRY ABOUT OVERCOMMERCIALIZATION THEY ALSO COMPLAIN THAT DONATIONS FOR RESEARCH ARE OFTEN OVERLOOKED IN THE STAMPEDE TO LAUNCH HIGHPROFILE AWARENESS PROJECTS I WISH MORE COMPANIES PUT MORE MONEY INTO RESEARCH AND WEREN'T QUITE SO CONCERNED ABOUT THEIR CORPORATE IMAGE SAYS FRAN VISCO PRESIDENT OF THE NATIONAL BREAST CANCER COALITION WHICH IS LEADING THE PETITION DRIVE SPONSORED BY REVLON AVON HAS ALREADY DISCOVERED THAT THE STRONG EMOTIONS EVOKED BY BREAST CANCER CAN TRANSLATE TO A COMPANY'S BOTTOM LINE LAST YEAR AVON LADIES IN BRITAIN PEDDLED PINS TO RAISE FUNDS FOR BREASTCANCER RESEARCH AND TALKED TO CUSTOMERS ABOUT THE DISEASE FACE TO FACE THE EXPERIMENT HAD A SUBSTANTIAL IMPACT ON SALES SAYS JAMES E PRESTON THE CHAIRMAN AND CHIEF EXECUTIVE OF AVON WHEN THE REPRESENTATIVE BEGINS TO TALK TO A CUSTOMER ABOUT SOMETHING LIKE THIS SUDDENLY THERE'S A LINKAGE AND A BONDING BETWEEN THEM AVON ALSO INVITES CUSTOMERS TO JOIN ITS BREASTCANCER CRUSADE ON THE COVER OF ITS OCTOBER CATALOGUE AND LAST WEEK IT COSPONSORED A PRIMETIME TV SPECIAL ON THE DISEASE HOSTED BY LINDA ELLERBEE A BREASTCANCER SURVIVOR AN AVONUNDERWRITTEN PBS SPECIAL WILL AIR NEXT MONTH AND AS PART OF ITS CURRENT TV AD CAMPAIGN AVON IS RUNNING A SPOT THAT PROMOTES THE BENEFITS OF EARLY DETECTION THE RESPONSE FROM WOMEN CUSTOMERS HAS EXCEEDED EXPECTATIONS LAST MONTH RH MACY & CO'S FLAGSHIP STORE IN MANHATTAN HOSTED A FASHION SHOW AND BREASTCANCER TALK BY SOAPOPERA ACTRESS NIA LONG THAT WAS COSPONSORED BY HANES AND GLAMOUR MAGAZINE TICKETS FOR THE EVENT WHICH ALSO FEATURED A PRESENTATION BY A DOCTOR SOLD OUT IN LITTLE MORE THAN AN HOUR REVLON TOO HAS BEEN STRUCK BY THE PUBLIC'S REACTION IT'S REALLY QUITE REMARKABLE HOW PEOPLE FEEL ABOUT IT AND HOW THEY FEEL ABOUT REVLON FOR AFFORDING THEM THE OPPORTUNITY TO GET INVOLVED SAYS TRACEY G RIESE SENIOR VICE PRESIDENT OF CORPORATE COMMUNICATIONS AT REVLON IN AVON'S CASE THE STRONG EMOTIONS SURROUNDING BREAST CANCER AFFORD AN OPPORTUNITY TO POSITION ITSELF AS A MORE PROGRESSIVE AND FEMALESENSITIVE COMPANY WE WANT TO REINFORCE THE ATTITUDE THAT AVON IS A CARING COMPANY A COMPANY THEY CAN TRUST MR PRESTON SAYS WE WANT TO DEAL WITH WOMEN NOT WITH TRANSACTIONS BUT WITH RELATIONSHIPS CORPORATE IMMERSION IN THE INCREASINGLY MILITANT POLITICS OF BREAST CANCER SOME SUGGEST MAY SIGNAL A NEW WILLINGNESS ON THE PART OF MARKETERS TO EMBRACE SENSITIVE OR CONTROVERSIAL ISSUES CAUSE MARKETING STARTED OUT WITH THE SAFE' CAUSES LIKE CHILDREN'S CHARITIES SAYS LESA UKMAN EXECUTIVE EDITOR OF CHICAGOBASED IEG SPONSORSHIP REPORT COMPANIES REALIZED THAT THERE'S A LOT OF VALUE IN TAKING A POSITION YET THE VERY NATURE OF BREAST CANCER MAKES IT LESS TOUCHY THAN SAY AIDS FOR ONE THING THERE'S THE NUMBER OF PATIENTS MORE THAN 182000 NEW CASES WILL BE DIAGNOSED THIS YEAR AND THOUGH BREASTCANCER FIVEYEAR SURVIVAL RATES HAVE IMPROVED ONLY SLIGHTLY IN THE PAST DECADE THE DISEASE DOES OFFER AT LEAST THE POSSIBILITY OF A HAPPY ENDING BECAUSE EARLY DETECTION INCREASES SURVIVAL ODDS WOMEN TEND TO VIEW AWARENESS PROGRAMS AS MORE THAN CRASS PUBLIC RELATIONS ULTIMATELY AIDS VERY MUCH MEANS DEATH DOESN'T IT SAYS MS UKMAN WHEN YOU LOOK AT A MARKETING OVERLAY YOU'D RATHER ASSOCIATE YOURSELF WITH SOMETHING POSITIVE STILL MARKETERS MUST PROCEED GINGERLY ANN MARCOU DIRECTOR OF COUNSELING FOR YME A NATIONAL BREASTCANCER EDUCATION ORGANIZATION PRAISES AVON'S EFFORTS BUT WARNS THAT WOMEN MAY FEEL AVON IS STEPPING OUT OF LINE AND INTO A FIELD WHERE IT DOESN'T BELONG SENSITIVITY IS SUCH THAT EVEN COMPANIES THAT ARE QUIETLY SUPPORTING BREASTCANCER RESEARCH MAY BALK AT TAKING A MORE PUBLIC STANCE THOUGH HER SISTER DIED OF BREAST CANCER AND SHE DONATES TO RESEARCH LINDA WACHNER THE CHIEF EXECUTIVE OF LINGERIEMAKER WARNACO GROUP INC TURNED DOWN THE AMERICAN CANCER SOCIETY'S SUGGESTION THAT WARNACO PUT TAGS ON ITS PRODUCTS EXPLAINING HOW TO DO A BREAST SELFEXAM CUSTOMERS INDICATED THAT THEY THOUGHT IT WAS A DETRIMENT TO HAVE A WARNING SO TO SPEAK ON A BRA MS WACHNER SAYS 9309210108 930921 WHO'S NEWS HARCOURT GENERAL HIRES BERYLSON FOR SPECIAL PROJECT BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL NEWTON MASS HARCOURT GENERAL INC HAS HIRED JOHN G BERYLSON A VENTURE CAPITALIST AND SONINLAW OF HARCOURT'S CHAIRMAN FOR A JOB THAT WILL PAY AN UNUSUAL PERFORMANCE INCENTIVE FOR THE RIGHT INVESTMENT CALLS MR BERYLSON AND A GROUP OF AIDES ARE EXPECTED TO RECEIVE 20 OF ANY CASH RETURNS ON INVESTMENTS THEY MAKE THAT EXCEED AN 8 ANNUAL RATE OF RETURN HARCOURT SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IN ADDITION HE WILL RECEIVE 225000 A YEAR AND AN ANNUAL BONUS OF 35 OF THAT OR 78750 WHICH WILL BE OFFSET AGAINST ANY SUMS EARNED FROM THE PERFORMANCE INCENTIVE SUCH INCENTIVES NOT UNCOMMON IN THE MONEY MANAGEMENT FIELD ARE RARE IN CORPORATE SETTINGS MR BERYLSON WHO IS 40 YEARS OLD AND MOST RECENTLY WAS MANAGING DIRECTOR OF BOSTONBASED ADVENT INTERNATIONAL FINANCIAL SERVICES WILL BE SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF GC COS HARCOURT'S MOVIETHEATER BUSINESS WHICH THE COMPANY EARLIER ANNOUNCED IT INTENDS TO SPIN OFF TO ITS SHAREHOLDERS AS A STANDALONE UNIT BEGINNING DEC 1 THE SPINOFF IS BEING WATCHED ON WALL STREET BECAUSE OF ITS POTENTIAL AS AN INVESTMENT VEHICLE AND BECAUSE OF THE RECORD OF RICHARD A SMITH HARCOURT'S CHAIRMAN WHO WILL ALSO BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GC IN 1989 HARCOURT REPORTED AN 855 MILLION AFTERTAX GAIN ON THE SALE OF ITS SOFTDRINK BOTTLING OPERATIONS ONE OF MR SMITH'S INVESTMENTS A HARCOURT SPOKESMAN SAID MR BERYLSON WASN'T AVAILABLE FOR COMMENT THE SPOKESMAN SAID MR BERYLSON'S COMPENSATION IS NOT THAT UNUSUAL FOR A VENTURE CAPITALIST AND HAS GOT TO BE COMPETITIVE WITH COMPENSATION PAID TO PEOPLE IN THAT FIELD BUT ACCORDING TO THE SEC FILING GC WON'T BE ENGAGED IN VENTURE CAPITAL BUT IN INVESTING IN OR ACQUIRING BUSINESSES INSIDE AND OUTSIDE THE MOVIES FOR INVESTMENTS UNRELATED TO MOVIE EXHIBITION GC'S OBJECTIVE WILL BE TO DEVELOP A PORTFOLIO OF EQUITY HOLDINGS PRIMARILY MINORITY POSITIONS WITH THE EXPECTATION OF ACHIEVING HIGHERTHANAVERAGE LONGTERM RETURNS MR BERYLSON WHO HAS ALSO BEEN A PARTNER OF COWEN & CO AN INVESTMENT BANKING AND VENTURE CAPITAL CONCERN IN BOSTON WILL REPORT TO A THREEPERSON INVESTMENT COMMITTEE INCLUDING MR SMITH ALSO IN THE FILING HARCOURT SAID GC HAD PRO FORMA NET EARNINGS OF 108 MILLION FOR THE NINE MONTHS ENDED JULY 31 ON REVENUE OF 3801 MILLION THE EARNINGS FIGURE WORKS OUT TO ABOUT 141 FOR EACH OF THE NEW COMPANY'S 77 MILLION COMMON SHARES HARCOURT MAINLY A PUBLISHER AND SPECIALTY RETAILER WILL TRANSFER ITS 1351 EXHIBITION SCREENS OTHER THEATER ASSETS AND 64 MILLION IN CASH TO GC CURRENT HARCOURT HOLDERS WILL RECEIVE ONE GC SHARE FOR EVERY 10 HARCOURT COMMON OR CLASS B SHARES THEY HOLD HARCOURT SHARES CLOSED YESTERDAY AT 44125 UP 125 OR 29 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309210107 930921 NIKE EARNINGS DECLINED BY 7 IN ITS 1ST PERIOD FIRM CITES SPECIAL FACTORS FOR DECLINE EXPECTS FISCAL '94 RESULTS TO FALL BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SIX YEARS OF STUNNING GROWTH NIKE INC HAS BEGUN TO STUMBLE BADLY DISCLOSING THAT FISCAL FIRSTQUARTER EARNINGS FELL 7 AND THAT IT EXPECTS A DROP IN RESULTS FOR THE YEAR THE NEWS SENT NIKE'S STOCK DOWN 175 A SHARE OR 36 TO 4625 A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK HAS FALLEN NEARLY 50 SINCE NOVEMBER YESTERDAY'S TRADING WAS HALTED FOR MORE THAN A HALFHOUR BECAUSE OF AN IMBALANCE OF SELL ORDERS AFTER A BOARD MEETING LATER IN THE DAY NIKE ALSO ANNOUNCED PLANS TO TRIM ANNUAL SPENDING BY 50 MILLION MOSTLY THROUGH JOB CUTS THE WORLD'S BIGGEST SHOE COMPANY SAID IT EARNED 1141 MILLION OR 149 A SHARE FOR THE QUARTER ENDED AUG 31 DOWN FROM 1226 MILLION OR 160 A SHARE A YEAR EARLIER SALES ROSE SLIGHTLY TO 111 BILLION FROM 11 BILLION THE COMPANY'S ORDERS FOR DELIVERY THROUGH JANUARY TOTALED 128 BILLION DOWN 4 FROM A YEAR EARLIER AS RECENTLY AS JULY PHILIP H KNIGHT NIKE'S CHAIRMAN TALKED OF SINGLEDIGIT EARNINGS GROWTH FOR THE YEAR YESTERDAY HE BLAMED THE EARNINGS DECLINE ON SPECIAL FACTORS THE WEAKENING DOLLAR AND THE RETROACTIVE INCREASE IN US CORPORATE TAX RATES HE SAID THESE FACTORS COMBINED WITH CAUTION AMONG US RETAILERS AND SLUGGISH FOREIGN ECONOMIES WILL MEAN THAT NET INCOME AND SALES FOR THE YEAR ENDING NEXT MAY 31 WILL NOT MATCH RESULTS FOR THE PREVIOUS YEAR LAST YEAR THE BEAVERTON ORE COMPANY EARNED 365 MILLION OR 474 A SHARE ON SALES OF 393 BILLION STOCK ANALYSTS SLASHED THEIR PROJECTIONS FOR FISCAL 1994 ALICE RUTH AN ANALYST FOR MONTGOMERY SECURITIES REVISED HER ESTIMATE TO 430 A SHARE FROM 490 INDICATING A 9 DECLINE IN NIKE'S FULLYEAR EARNINGS SHE SAID NIKE'S PROBLEMS AREN'T JUST CYCLICAL BUT ARE ALSO TIED TO A SHIFT IN FASHION PREFERENCES AWAY FROM HIGHPRICED ATHLETIC SHOES TOWARD OUTDOOR WEAR AND STREET LOOKS SUCH AS BLACK BOOTS NIKE SAID YESTERDAY THAT FIRSTQUARTER SALES OF ITS LINE OF BASKETBALL SHOES ITS BIGGEST CATEGORY FELL 16 FROM A YEAR EARLIER TO 159 MILLION EARLIER THIS YEAR ANALYSTS' ESTIMATES FOR FISCAL 1994 HOVERED AROUND 550 A SHARE INDICATING AN EXPECTED 16 GAIN FROM THE YEAR BEFORE BUT ON JUNE 18 NIKE WARNED THAT EARNINGS WOULD BE SIGNIFICANTLY BELOW THAT LEVEL BECAUSE OF LAGGING ORDERS FOR THE CHRISTMAS SEASON THE AMOUNT OF NIKE'S DECLINE IS MORE SEVERE THAN I THOUGHT BUT THE OVERALL DIRECTION DOESN'T SURPRISE ME AT ALL MS RUTH SAID THE INDUSTRY IS NOT GROWING AND MAY BE SHRINKING MODESTLY GIVEN NIKE'S MARKET SHARE IT WAS CLEARLY GOING TO BE AFFECTED SOME ANALYSTS EXPECT NIKE'S GROWTH TO RESUME BY FISCAL 1995 IF THERE IS IMPROVEMENT IN THE ECONOMIES OF SOME OF ITS LARGEST FOREIGN MARKETS SUCH AS FRANCE GERMANY SPAIN AND ITALY NIKE'S INTERNATIONAL SALES DROPPED 11 IN THE FIRST PERIOD WHILE DOMESTIC SALES ROSE 5 NIKE IS ALSO WELLPOSITIONED IN SOME ATHLETICSHOE NICHES THAT CONTINUE TO GROW SMARTLY YESTERDAY THE COMPANY REPORTED THAT SALES OF OUTDOOR WEAR ROSE 29 FOR THE QUARTER WOMEN'S FITNESS PRODUCTS 18 AND CROSSTRAINING SHOES 34 I REALLY DON'T BELIEVE THERE ARE FUNDAMENTAL PROBLEMS SAID JOSEPHINE ESQUIVEL A LEHMAN BROTHERS ANALYST TWELVE MONTHS FROM NOW I THINK NIKE WILL BE RECOVERING BUT RIGHT NOW IT IS UNDER THE CLOUD OF WEAK ECONOMIES IN MANY COUNTRIES FROM FISCAL 1988 TO 1993 NIKE'S SALES AND EARNINGS NEARLY QUADRUPLED PARTLY BECAUSE OF A CANNY MARKETING CAMPAIGN FEATURING MICHAEL JORDAN AND OTHER SPORTS STARS PUSHING RELATIVELY EXPENSIVE ATHLETIC SHOES IN A RECENT INTERVIEW MR KNIGHT SAID THE COMPANY PLANS TO EXPAND ITS OUTDOORWEAR LINES WHICH LAST YEAR GENERATED 123 MILLION OF SALES HE PREDICTED OUTDOOR SHOES WILL BE AS BIG AS BASKETBALL SNEAKERS IN ANOTHER COUPLE OF YEARS FRANKLY OUR OUTDOOR OFFERING HASN'T BEEN ALL THAT EXPANSIVE SAID MARK PARKER NIKE'S VICE PRESIDENT FOR MARKETING DESIGN AND DEVELOPMENT WE COULD BE DOING A LOT MORE WITH BOOTS MR PARKER SAID NIKE IS ALSO PLANNING TO PUSH ITS OUTDOOR CROSSTRAINING SNEAKER MODELS DURING THE WINTER AND SPRING QUARTERS HE SAID THE COMPANY EXPECTS TO BOOST OUTDOOR SHOE SALES 40 IN FISCAL 1994 INDUSTRY MARKETING ANALYSTS HAVE PROJECTED A 30 TO 33 OVERALL GROWTH FOR OUTDOOR FOOTWEAR DURING THE PERIOD IN ADDITION TO BOLSTERING ITS INHOUSE OUTDOOR LINES NIKE ALSO IS CONSIDERING BUYING AN ESTABLISHED OUTDOOREQUIPMENT MANUFACTURER TO BOOST ITS PENETRATION OF THE MARKET MARKETING ANALYSTS SAID NIKE AND ITS MAJOR FOOTWEAR COMPETITOR REEBOK INTERNATIONAL LTD HAVE BOTH LOOKED AT SEVERAL OUTDOOR COMPANIES INCLUDING NORTH FACE A BERKELEY CALIF MAKER OF HIGHEND MOUNTAIN CLIMBING GEAR SKI EQUIPMENT FOOTWEAR AND OTHER OUTDOOR APPAREL NORTH FACE WITH FISCAL 1993 SALES OF 838 MILLION IS OWNED BY CLOSELY HELD ODYSSEY GROUP ODYSSEY HAS BEEN QUIETLY TRYING TO SELL NORTH FACE FOR SEVERAL MONTHS AFTER RUNNING INTO FINANCIAL PROBLEMS MR PARKER CONFIRMED THAT NIKE HAD LOOKED AT NORTH FACE BUT SAID THE COMPANY ISN'T ON NIKE'S A LIST OF POTENTIAL ACQUISITION CANDIDATES NORTH FACE OFFICIALS DECLINED TO COMMENT IN A PREPARED STATEMENT YESTERDAY MR KNIGHT NOTED THAT THE FIRST QUARTER WOULD HAVE BEEN OUR BEST EVER BUT FOR THE WEAK DOLLAR AND TAX RATES HE SAID PERSHARE EARNINGS WOULD HAVE BEEN 161 SLIGHTLY ABOVE THE YEAREARLIER 160 A SHARE IF FOREIGNEXCHANGE RATES AND US TAX RATES HAD REMAINED CONSTANT THE ADJUSTMENT FOR THE ONEPERCENTAGE POINT BOOST IN THE CORPORATE TAX RATE TO 35 DECREASED PERSHARE EARNINGS BY EIGHT CENTS THE LONGTERM WORLDWIDE POTENTIAL FOR NIKE REMAINS INTACT AND OUR PREVIOUSLY STATED GOAL OF 6 BILLION IN SALES IS ACHIEVABLE BUT IT WILL NOT BE A STRAIGHT LINE OF GROWTH TO THAT LEVEL MR KNIGHT SAID MR KNIGHT SAID THE BOARD'S PLAN TO CUT YEARLY SPENDING BY 50 MILLION WOULD REQUIRE A 3 TO 4 REDUCTION IN ITS TOTAL WORLDWIDE WORK FORCE OF ABOUT 9700 EMPLOYEES NIKE HAD ADDED 3800 POSITIONS IN THE US IN THE PAST SIX YEARS MR KNIGHT SAID THE MOVE WAS NECESSARY TO KEEP PAYROLL IN LINE WITH PROJECTED REVENUES THE GOAL IS TO BE READY FOR RENEWED GROWTH IN FISCAL 1995 BILL RICHARDS IN SEATTLE CONTRIBUTED TO THIS ARTICLE 9309210105 930921 BUSINESS BRIEF FLEMING COS THIRDPERIOD NET TO BE CUT BY RECENT TAX LEGISLATION FLEMING COS SAID THAT ITS THIRDQUARTER EARNINGS WOULD BE REDUCED BY ABOUT 2 MILLION OR FIVE TO SIX CENTS A SHARE AS A RESULT OF RECENTLY ENACTED FEDERAL TAX LEGISLATION THE OKLAHOMA CITY WHOLESALE FOOD DISTRIBUTOR ESTIMATED THAT THE NEW LEGISLATION WILL INCREASE ITS EFFECTIVE TAX RATE TO 425 FROM 411 THE COMPANY SAID THAT THE RETROACTIVE EFFECT OF THE INCREASED RATE ON THE FIRST HALF OF 1993 WILL BE RECORDED IN THE THIRD QUARTER IN THE YEARAGO THIRD QUARTER FLEMING EARNED 218 MILLION OR 61 CENTS A SHARE ON REVENUE OF 29 BILLION 9309210104 930921 TECHNOLOGY IBM IS READY TO FIRE ANOTHER SALVO TODAY IN WORKSTATION WARS NEW YORK INTERNATIONAL BUSINESS MACHINES CORP PLANS TO INTRODUCE TODAY A NEW GENERATION OF RISC SYSTEM 6000 COMPUTERS IN ANOTHER SALVO IN THE WORKSTATION WARS IBM CLAIMS THAT THE MOST POWERFUL MODELS IN THE NEW LINE WILL HAVE POWER EQUAL TO SOME CRAY RESEARCH INC SUPERCOMPUTERS BUT WILL COST ONETENTH THE PRICE OF COMPARABLE SYSTEMS OFFERED BY COMPETITORS INDUSTRY EXPERTS SAID HOWEVER IBM'S ENTRIES SIMPLY RAISE THE BAR IN THE ONGOING WORKSTATION POWER AND PRICE WARS AND WON'T FUNDAMENTALLY ALTER THE MARKETPLACE IT'S JUST ANOTHER ROUND IN THE BLOOD BATH SAID JOHN MCCARTHY DIRECTOR OF TECHNICAL RESEARCH FOR FORRESTER RESEARCH INC OF CAMBRIDGE MASS THE NEW IBM WORKSTATIONS TAKE ADVANTAGE OF A MULTICHIP PROCESSOR ARCHITECTURE CALLED POWER2 AS MANY AS EIGHT OF THE CHIPS CAN BE LASHED TOGETHER YIELDING HIGH PARALLEL PERFORMANCE RISC STANDS FOR REDUCED INSTRUCTION SET COMPUTING AND IS A POPULAR DESIGN USED PRIMARILY BY SCIENTISTS AND TECHNOLOGY BUSINESSES BECAUSE IT IS SO SPEEDY IBM HOWEVER SAID IT ALSO IS TARGETING THE COMMERCIAL MARKET SUCH AS INSURANCE COMPANIES AND BANKS THAT PROCESS LARGE AMOUNTS OF DATA THE STARTING PRICE FOR A DESKSIDE ENTRYLEVEL WORKSTATION STARTS AT 64500 AND RUNS TO 127000 FOR THE HIGHEND MODEL 9309210103 930921 WHO'S NEWS GERBER PRODUCTS CO REPLACES THE PRESIDENT OF INTERNATIONAL UNIT FREMONT MICH GERBER PRODUCTS CO REPLACED THE PRESIDENT OF ITS FLEDGLING INTERNATIONAL DIVISION AN AREA THE DOMESTIC BABYFOOD COMPANY HAS TARGETED FOR MAJOR GROWTH JOSE ANDRES RODRIGUEZ 56 YEARS OLD AND A RETIRED QUAKER OATS CO EXECUTIVE WAS NAMED TO SUCCEED MICHAEL A CIPOLLARO 58 GERBER SAID MR RODRIGUEZ ONCE HEADED QUAKER'S EUROPEAN OPERATIONS REACHED AT HIS HOME MR CIPOLLARO SAID HE LEFT GERBER AFTER AN AGREEMENT TO DISAGREE THE COMPANY WOULDN'T COMMENT ON THE CIRCUMSTANCES OF HIS DEPARTURE THE MANAGEMENT CHANGE IS THE SECOND IN GERBER'S INTERNATIONAL SECTOR IN LESS THAN TWO MONTHS IN MIDAUGUST J PATRICK DOYLE 30 WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF GERBERCANADA SUCCEEDING DAVID MOSLEY WHO RESIGNED MR CIPOLLARO'S DEPARTURE SURPRISED SOME ON WALL STREET HE WAS THE ARCHITECT OF A LOT OF THE EUROPEAN GROWTH PLANS SAID JOHN M MCMILLIN FOODINDUSTRY ANALYST AT PRUDENTIAL SECURITIES INC WHO LIKENED THE SITUATION TO CHANGING THE MANAGER OF A BASEBALL TEAM IN APRIL I DON'T SEE HOW THEY'VE PROGRESSED LONG ENOUGH IN THEIR INTERNATIONAL DEVELOPMENT TO FIRE ANYONE LAST JANUARY GERBER'S FORMER PRESIDENT JAMES T SMITH LEFT THE COMPANY HE HAS SINCE BECOME HEAD OF CONAGRA INC'S FROZENFOOD BUSINESS ALFRED A PIERGALLINI GERBER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ASSUMED THE TITLE AND DUTIES OF THE PRESIDENCY ON MR SMITH'S DEPARTURE 9309210102 930921 ECONOMY DISCOUNT RATE IS CUT IN JAPAN TO RECORD LOW DECREASE TO 175 IS AIMED AT SPURRING ECONOMY AND CAPPING YEN'S RISE BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE BANK OF JAPAN CUT ITS DISCOUNT RATE TO A POSTWAR LOW IN AN EFFORT TO SPUR THE COUNTRY'S FALTERING ECONOMY AND PUT A CEILING ABOVE THE STRONG YEN THE JAPANESE CENTRAL BANK LOWERED THE DISCOUNT RATE WHICH IS CHARGED ON LOANS TO MAJOR BANKS TO 175 FROM 25 BEFORE THE ANNOUNCEMENT MADE TUESDAY MORNING TOKYO TIME THE 25 LEVEL HAD BEEN THE DISCOUNT RATE'S LOWEST POINT SINCE WORLD WAR II THE RATE CUT WHICH TOOK EFFECT IMMEDIATELY HAD BEEN EXPECTED FOR WEEKS BUT THE SIZE OF THE REDUCTION 075 PERCENTAGE POINT WAS AT THE TOP OF MANY PREDICTIONS THE ACTION IS SURE TO PLEASE THE US GOVERNMENT WHICH WANTS JAPAN TO STIMULATE ITS ECONOMY THEREBY INCREASING ITS APPETITE FOR IMPORTS OF US GOODS THE RATE CUT FOLLOWED LAST THURSDAY'S ANNOUNCEMENT BY THE TOKYO GOVERNMENT OF SPENDING AND DEREGULATION MEASURES TOTALING MORE THAN 58 BILLION THAT ARE MEANT TO SPUR GROWTH AND OVERHAUL THE NATION'S HEAVILY REGULATED ECONOMY ANALYSTS QUESTIONED WHETHER LAST WEEK'S STEPS WOULD HAVE A SIGNIFICANT IMPACT AND US TREASURY SECRETARY LLOYD BENTSEN SAID AT THE TIME THAT HE WAS ENCOURAGED BY THE PROGRAM BUT THAT MORE STEPS WOULD BE NEEDED IN JAPAN THE EXPECTATIONS THAT THE DISCOUNT RATE WAS ABOUT TO BE CUT HAD BUOYED SHARE PRICES FOR WEEKS DESPITE THE NATION'S RECENT POLITICAL TURMOIL AND SAGGING ECONOMY IN JULY THE LIBERAL DEMOCRATIC PARTY LOST ITS 38YEAR HOLD ON POWER JAPANESE COMPANIES MEANWHILE ARE STRUGGLING WITH WEAK DOMESTIC DEMAND AND THE STRONG YEN'S IMPACT ON EXPORTS AND OVERSEAS OPERATIONS ECONOMIC POLICY MAKERS HOPE THE DISCOUNTRATE CUT WILL STIMULATE ECONOMIC ACTIVITY BY ENCOURAGING COMPANIES TO BORROW AND THEREFORE TO SPEND LAST TUESDAY THE GOVERNMENT REPORTED THAT GROSS NATIONAL PRODUCT CONTRACTED AT A 2 ANNUAL RATE IN THE QUARTER ENDED JUNE 30 THAT MARKED A MUCH MORE RAPID DETERIORATION IN THE JAPANESE ECONOMY THAN EXPECTED AND THE CURRENT QUARTER'S PERFORMANCE ISN'T LIKELY TO BE MUCH BETTER IN ANNOUNCING THE RATE CUT THE CENTRAL BANK SAID THE JAPANESE ECONOMY IS STILL IN A STAGNANT STATE AGAINST A BACKGROUND OF WEAK FIXED BUSINESS INVESTMENT AND PERSONAL CONSUMPTION WHETHER THE RATE REDUCTION WILL DO MUCH TO STIMULATE BORROWING REMAINS IN DOUBT HOWEVER BANK LENDING GREW AT JUST 08 YEARONYEAR IN AUGUST AND RATES WERE AT THEIR HISTORIC LOW SAID MARSHALL GITTLER FIXEDINCOME ANALYST AT MERRILL LYNCH JAPAN INC PEOPLE ARE REPAYING DEBT THEY DON'T NEED NEW MONEY THE OTHER FACTOR THAT PRESSURED THE CENTRAL BANK TO CUT THE DISCOUNT RATE IS THE STRONG YEN WHICH HURTS JAPANESE EXPORTERS BY MAKING THEIR PRODUCTS MORE EXPENSIVE IN DOLLAR TERMS IN THEORY LOWER JAPANESE INTEREST RATES SHOULD CURB THE YEN'S STRENGTH BY REDUCING THE RETURNS ON YENDENOMINATED BONDS AND BANK DEPOSITS THUS CURTAILING DEMAND FOR THE CURRENCY HOWEVER BECAUSE PARTICIPANTS IN THE FOREIGNEXCHANGE MARKET HAD BEEN EXPECTING A DISCOUNTRATE CUT THE EFFECT OF TUESDAY'S ACTION MAY ALREADY HAVE BEEN FACTORED INTO THE YEN'S VALUE IN FACT SOON AFTER THE CUT WAS ANNOUNCED THE YEN WAS TRADING SLIGHTLY HIGHER AGAINST THE DOLLAR LOWER INTEREST RATES ALSO SHOULD HELP JAPAN'S TROUBLED BANKS BECAUSE THEY CAN PROFIT FROM THE WIDENING GAP BETWEEN THE RATE THEY MUST PAY THE CENTRAL BANK FOR FUNDS AND THE RATE THEY CHARGE THEIR BORROWERS FOR LOANS FOR MONTHS BUSINESS EXECUTIVES HAD CALLED FOR LOWER INTEREST RATES BUT THE CENTRAL BANK HAD HESITATED JAPAN'S ECONOMIC BUREAUCRATS MAY HAVE BEEN CONCERNED THAT CHEAP MONEY FROM THE GOVERNMENT WOULD BRING A RETURN OF THE ASSET INFLATION OF THE LATE 1980S WHEN JAPANESE STOCK AND LAND PRICES REACHED DIZZYING HEIGHTS PRICES HAVE SINCE COLLAPSED LEAVING TOKYO'S COMMERCIAL REALESTATE MARKET IN SHAMBLES AND THE STOCK MARKET'S VALUATION AT ABOUT ONEHALF OF ITS RECORD HIGH BECAUSE THE CENTRAL BANK REMAINS CONCERNED ABOUT TOUCHING OFF ANOTHER BOUT OF ASSET INFLATION ECONOMISTS SAID IT PROBABLY WILL RAISE INTEREST RATES AT THE FIRST SIGN OF ECONOMIC RECOVERY ONCE THE ECONOMY LOOKS LIKE IT HAS REGAINED ITS FOOTING THE CENTRAL BANK WON'T KEEP RATES DOWN SAID DON KIMBALL ECONOMIST WITH MITSUBISHI BANK LTD 9309210101 930921 MONDAY'S MARKETS STOCKS SLIDE ON JITTERS OVER PROFITS INDUSTRIALS FALL 3745 BIGGEST DECLINE SINCE APRIL AS BONDS DROP BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL RISING INTEREST RATES AND JITTERS ABOUT CORPORATE PROFITS SENT THE DOW JONES INDUSTRIAL AVERAGE TUMBLING BONDS ALSO FELL AND THE DOLLAR ENDED MIXED BATTERED BY SEVERAL WAVES OF COMPUTERGUIDED SELL PROGRAMS THE INDUSTRIAL AVERAGE SKIDDED 3745 POINTS TO 357580 MARKING THE WORST SINGLEDAY DROP SINCE APRIL 2 YESTERDAY'S DECLINE BRINGS THE DOW'S LOSSES SO FAR THIS MONTH TO 21 STANDARD & POOR'S 500STOCK INDEX SANK 378 TO 45505 BUT THE NASDAQ COMPOSITE INDEX EDGED UP 010 TO 74021 THANKS TO STRENGTH IN SOME BIG TECHNOLOGY STOCKS BOND PRICES SLID DESPITE A LACK OF ANY ECONOMIC NEWS ANALYSTS SAID THE RECENT BOND RALLY NEEDED A STEADY STREAM OF GOOD NEWS ON INFLATION TO CONTINUE MERELY THE ABSENCE OF NEWS WAS ENOUGH TO PROMPT PROFITTAKING BUT RISING INTEREST RATES WERE ONLY ONE WORRY FOR THE STOCK MARKET INVESTORS ARE REALIZING THAT A LOWGROWTH LOWINFLATION ECONOMY IS NOT FRIENDLY TO CORPORATE PROFITS SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS THE LATEST SIGN CAME WHEN SHOE MANUFACTURER NIKE SAID ITS FIRSTQUARTER PROFIT DROPPED TO 149 A SHARE FROM 160 A SHARE A YEAR EARLIER DRIVING THE STOCK 1 3/4 LOWER TO 46 1/4 NIKE ALSO SAID IT DOESN'T EXPECT EARNINGS FOR FISCAL 1994 TO MATCH THE RECORD PROFIT OF FISCAL 1993 MANY ANALYSTS HAD BEEN COUNTING ON A PICKUP IN THE GLOBAL ECONOMIES TO FATTEN US CORPORATE PROFITS IN THE COMING YEAR BUT MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID EARNINGS REPORTS LIKE NIKE'S SUGGEST THAT THE BOOM IN CORPORATE PROFITS MAY BE FARTHER AWAY THAN INVESTORS SUSPECT EVERYBODY IS TELLING THE STORY THAT THE WORST IS OVER AND YOU ARE GOING TO SEE THE BENEFITS OF AN IMPROVING ECONOMY NEXT YEAR SAID MR METZ BUT NIKE IS ONE OF THE MOST EFFICIENT WELLRUN COMPANIES IN THE WORLD AND IF THEY ARE HAVING PROBLEMS HOW ARE THEIR COMPETITORS DOING OTHER ANALYSTS NOTED THAT NIKE'S ANNOUNCEMENT WAS PARTICULARLY ALARMING BECAUSE IT WAS THE LATEST IN A PARADE OF COMPANIES TO REPORT OR FOREWARN INVESTORS OF DISAPPOINTING EARNINGS DURING THE PAST FEW DAYS A NUMBER OF OTHER COMPANIES INCLUDING EASTMAN KODAK AND WESTINGHOUSE HAVE SAID THEY EXPECT EARNINGS FOR THE THIRD QUARTER TO BE FLAT OR SUBSTANTIALLY LOWER WESTINGHOUSE'S AND NIKE'S ANNOUNCEMENTS SHOW THE BREADTH OF THE EARNINGS PROBLEM SAID MR SHULMAN NOT ONLY ARE CAPITAL GOODS MAKERS LIKE WESTINGHOUSE HAVING A HARD TIME TURNING PROFITS IN THE SLUGGISH ECONOMIC ENVIRONMENT BUT SO ARE CONSUMER CONCERNS LIKE NIKE HE SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 059 TO 11145 IN MAJOR MARKET ACTION STOCK PRICES SLID VOLUME TOTALED 228 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 866 ISSUES ROSE AND 1119 FELL BOND PRICES TUMBLED THE TREASURY'S BENCHMARK 30YEAR ISSUE DROPPED MORE THAN 3/4 POINT OR MORE THAN 750 FOR EACH 1000 FACE AMOUNT TO YIELD 61 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16112 MARKS AND 10468 YEN COMPARED WITH 16146 MARKS AND 10445 YEN FRIDAY 9309210100 930921 CREDIT MARKETS BOND PRICES FALL SHARPLY IN TREASURY MARKET YIELD ON BENCHMARK 30YEAR ISSUE RISES TO 61 BY JOHN HUGHES AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE PARTY IN THE TREASURY MARKET MAY HAVE ENDED A WEEK AGO BUT THE MARKET SEEMED TO BE NURSING A HANGOVER YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH 1000 FACE VALUE TO 101 31/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 610 FROM 604 FRIDAY THE 10YEAR NOTE DROPPED 1/2 POINT TO 102 7/32 TO YIELD 544 UP FROM 538 MEANWHILE STRONG DEMAND GREETED A 1 BILLION ISSUE OF 10YEAR GLOBAL NOTES FROM PORTUGAL DESPITE A RATHER NARROW YIELD SPREAD OVER COMPARABLE TREASURY ISSUES INVESTORS IN EUROPE NORTH AMERICA AND ASIA SNAPPED THE ISSUE UP IN THE TREASURY MARKET ECONOMISTS SAID SUPPLY WAS A FOCAL POINT THE TREASURY DEPARTMENT IS SCHEDULED TO SELL 16 BILLION IN TWOYEAR NOTES TODAY AND 11 BILLION IN FIVEYEAR NOTES TOMORROW WHENEVER THE MARKET WANTS TO CORRECT THE FOCUS GOES BACK TO SUPPLY SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA RAMIREZ CAPITAL CONSULTANTS ASIDE FROM THE TWOYEAR NOTE AUCTION ONLY HOUSING STARTS DATA ARE SCHEDULED FOR RELEASE TODAY AND DURABLE GOODS ORDERS ON FRIDAY NEITHER REPORT IS EXPECTED TO HAVE LONGTERM MARKET RAMIFICATIONS ALL OTHER THINGS BEING EQUAL THE PROSPECT OF SUPPLY CAUSES PRESSURE SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST WITH FIRST CHICAGO NATIONAL BANK MR KARYDAKIS SAID THE PATH OF LEAST RESISTANCE CURRENTLY IS DOWNWARD FOR TREASURY PRICES THE MARKET IS SEEKING A TEMPORARY BOTTOMING POINT IN AN ATTEMPT TO STABILIZE TRADERS SAID VOLUME WAS LIGHT THROUGHOUT THE DAY WITH MOST OF THE LOSSES AMONG LONGTERM MATURITIES OCCURRING LATE IN THE SESSION THE HEAVY TONE WE SAW WITH THE RELEASE OF THE CONSUMER PRICE INDEX LAST TUESDAY IS STILL WITH US SAID WILLIAM SULLIVAN SENIOR VICE PRESIDENT AND DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC WE HAVE A STEADY DRUMBEAT OF SELLING PRESSURE IN THE TREASURY MARKET MR SULLIVAN ADDED HOWEVER HE SAID HE WAS UNAWARE OF ANY PORTFOLIO DUMPING OR OF A LARGE NEED TO HEDGE POSITIONS THE TREASURY MARKET APPEARS TO HAVE LOST THE MOMENTUM IT BUILT DURING THE SUMMER AS LONGTERM INTEREST RATES FELL TO THEIR LOWEST LEVELS IN DECADES OVER THE PAST WEEK THE YIELD OF THE 30YEAR TREASURY BOND HAS RISEN MORE THAN 020 PERCENTAGE POINT THIS DECLINE IS RECOGNITION THAT THE HOUSING AND DURABLE GOODS ORDERS MAY SHOW STRENGTH IN THE ECONOMY SAID MR SULLIVAN THAT ASSESSMENT WAS ECHOED BY JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST FOR GRUNTAL & CO THE YIELD CURVE IS STARTING TO STIFFEN IN FACE OF A STRONGER ECONOMY IN THE FOURTH QUARTER AND FIRST QUARTER OF 1994 HE SAID BOND INVESTORS OFTEN FEAR A STRENGTHENING ECONOMY BECAUSE IT CAN RESULT IN HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MR BATTIPAGLIA ALSO ATTRIBUTED THE MARKET WEAKNESS TO JAWBONING ON THE PART OF FEDERAL RESERVE BOARD MEMBERS REGARDING THE POSSIBILITY OF AN INFLATIONARY BUBBLE I'VE BEEN SELLING MY LONG TREASURYS FOR SEVERAL WEEKS NOW SO I GUESS THE MARKET'S JUST CAUGHT UP TO ME SAID STEPHEN SMITH MANAGER OF 2 BILLION OF FIXEDINCOME SECURITIES FOR BRANDYWINE ASSET MANAGEMENT INC MORE THAN ANYTHING ELSE THE CORRECTION IS A PERCEPTION AMONG FUND MANAGERS THAT THE MARKET HAS GONE TOO FAR TOO FAST SAID MR SMITH A MOVE BACK UP TO 650 YIELD ON THE LONG BOND WOULDN'T SURPRISE ME THE MARKET HAS BECOME A LOT MORE CAUTIOUS HE SAID LATE IN THE DAY THE TREASURY TWOYEAR NOTE TO BE SOLD TODAY YIELDED 396 IN WHENISSUED TRADING AND THE FIVEYEAR NOTE TO BE SOLD TOMORROW YIELDED 485 MEANWHILE THE TREASURY YESTERDAY SOLD 2253 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 293 FOR A COUPONEQUIVALENT YIELD OF 299 COMPARED WITH 304 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 306 FOR A COUPONEQUIVALENT YIELD OF 315 UNCHANGED FROM LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED SEPT 23 THE 13WEEK BILLS MATURE DEC 23 1993 AND THE 26WEEK BILLS MATURE MARCH 24 1994 THE REPUBLIC OF PORTUGAL'S 10YEAR 1 BILLION GLOBAL BOND OFFERING REPRESENTED ABOUT HALF OF THE DAY'S TOTAL DEBT ISSUANCE IN THE CORPORATE MARKET GLOBAL BONDS USUALLY DENOMINATED IN DOLLARS ARE SOLD SIMULTANEOUSLY IN ASIA EUROPE AND NORTH AMERICA THEY ARE DESIGNED TO BE EASILY TRADED IN ANY OF THESE MARKETS PORTUGAL'S OFFERING WAS SLIGHTLY OVERSUBSCRIBED PRICES OF THE BONDS ROSE SLIGHTLY AFTER THE DEAL WAS COMPLETED SAID TRADERS A SIGN OF STRONG DEMAND ALSO IN THE MARKET YESTERDAY WAS A 100 MILLION OFFERING FROM ARIZONA PUBLIC SERVICE CO STUDENT LOAN MARKETING ASSOCIATION'S 600 MILLION DEAL AND A 300 MILLION OFFERING FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION MERRILL LYNCH & CO HIT THE MARKET WITH ITS SPECIALTY PRODUCT LIQUID YIELD OPTION NOTES FOR MOTOROLA INC MOTOROLA ISSUED 281 MILLION OF 20YEAR LYONS WHICH WERE PRICED AS 63923 TO YIELD 225 THE NOTES NONCALLABLE FOR FIVE YEARS ARE CONVERTIBLE INTO COMMON SHARES AT 114375 A 22 PREMIUM THEY ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP TRADING WAS QUIET IN THE SECONDARY INVESTMENTGRADE MARKET WITH PRICES FOLLOWING TREASURY ISSUES LOWER TRADING IN THE JUNKBOND MARKET WAS LIGHT WITH PRICES RELATIVELY UNCHANGED THE MARKET APPEARS TO BE WAITING FOR THE CALENDAR OF NEW ISSUES TO HIT THE MAKET PORTUGAL'S BONDS WERE PRICED AT 9935 TO YIELD 5837 045 PERCENTAGE POINT ABOVE 30YEAR TREASURY BONDS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND IBJ INTERNATIONAL PLC ABOUT 50 OF PORTUGAL'S OFFERING WAS SOLD IN THE EUROPEAN MARKET 30 TO 35 IN NORTH AMERICA AND 15 TO 20 IN ASIA ACCORDING TO JAMES QUIGLEY MANAGING DIRECTOR AND HEAD OF GLOBAL DEBT SYNDICATE AT MERRILL LYNCH INDEED BASED ON THE DEMAND THE ISSUE COULD HAVE BEEN AS LARGE AS 15 BILLION HAD PORTUGAL WANTED TO INCREASE ITS SIZE HE SAID HOWEVER PORTUGAL'S OBJECTIVE WAS TO ACHIEVE THE TIGHTEST PRICING POSSIBLE AND BE CONSIDERED ONE OF THE STRONGEST SOVEREIGN ISSUERS MR QUIGLEY NOTED PORTUGAL HAS NEVER ISSUED GLOBAL DEBT BEFORE ABOUT TWO MONTHS AGO PORTUGAL WAS UPGRADED BY S&P FROM SINGLEAPLUS PORTUGAL'S OFFERING WAS PRICED AT A YIELD SPREAD TO TREASURYS NEARLY 017 PERCENTAGE POINT NARROWER THAN THE REPUBLIC OF ITALY'S 10YEAR GLOBAL BONDS WHICH WERE PRICED LAST THURSDAY PROFITTAKING CONTINUED IN THE MUNICIPAL MARKET WITH ACTIVELY TRADED ISSUES FALLING 1/8 TO 1/2 POINT EVEN THOUGH YIELDS ARE INCHING UP MORE THAN 300 MILLION OF MUNICIPAL ISSUES WERE PRICED YESTERDAY KICKING OFF AN EXPECTED TOTAL OF MORE THAN 35 BILLION THIS WEEK SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY'S 1037 MILLION SERIES 1993B POWER SUPPLY SYSTEM REVENUE BONDS WERE PRICED BY A MORGAN STANLEY GROUP TO YIELD FROM 270 IN 1994 TO 523 IN 2013 IN THE COMPETITIVE PRICING SECTOR AURORA COLO'S 1147 MILLION SERIES 1993 WATER REFUNDING UNLIMITEDTAX BONDS WERE APPARENTLY WON BY A MERRILL LYNCH GROUP WITH A BID SETTING THE NET INTEREST COST AT 4737 YIELDS FOR REOFFERED BONDS RANGED FROM 275 IN 1994 TO 490 IN 2008 MORTGAGE SECURITIES DRIFTED LOWER AFTER A DAY OF LISTLESS TRADING THE SPREAD BETWEEN MOST MORTGAGE ISSUES AND COMPARABLEMATURITY TREASURY ISSUES WAS UNCHANGED LATE IN THE SESSION FOR EXAMPLE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION'S 6 1/2 ISSUE YIELDED 96 BASIS POINTS MORE THAN THE TREASURY'S 10YEAR NOTE THE SAME AS LATE FRIDAY AMONG CURRENT COUPONS FOR OCTOBER DELIVERY GINNIE MAE'S 6 ISSUE RECENTLY WAS DOWN 12/32 AT 99 3/32 FEDERAL HOME LOAN MORTGAGE CORP'S GOLD 6 ISSUE AND FEDERAL NATIONAL MORTGAGE ASSOCIATION'S 6 SECURITIES WERE BOTH DOWN 13/32 AT 98 15/32 AND 98 11/32 RESPECTIVELY THE PRIMARY MARKET WAS QUIET WITH NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS ANNOUNCED 9309210099 930921 LEISURE & ARTS THE GALLERY BEAUXARTS LOOK FOR MET'S NEW 19THCENTURY GALLERIES BY ROGER KIMBALL NEW YORK WITH THE OPENING OF ITS SPLENDID NEW GALLERIES FOR 19THCENTURY EUROPEAN PAINTING AND SCULPTURE THE METROPOLITAN MUSEUM OF ART ACQUIRES AN EXHIBITION SPACE CONSPICUOUSLY SUITED TO SHOWING OFF THE SINGLE MOST POPULAR PART OF ITS COLLECTION TWO YEARS IN THE MAKING THE DESIGN AND RECONSTRUCTION COST SOME 13 MILLION NEARLY HALF OF THIS SUM WAS CONTRIBUTED BY THE MET'S MOST LAVISH CONTEMPORARY DONOR THE ANNENBERG FOUNDATION WITH THE BALANCE BEING CONTRIBUTED BY THE IRIS AND B GERALD CANTOR FOUNDATION AND JANICE H LEVIN THE NEW SUITE OF 21 GALLERIES REPLACES THE ANDRE MEYER GALLERIES WHICH OCCUPIED THE SAME 120FOOTBY200FOOT ENVELOPE ON THE SECOND FLOOR OF THE MUSEUM'S SOUTH WING BASED ON AN OPEN PLAN THE ANDRE MEYER GALLERIES WERE HAILED AS NEAR PERFECT WHEN THEY WERE UNVEILED IN 1980 BUT THAT LOFTLIKE SPACE STUDDED WITH MOVABLE PARTITIONS TURNED OUT TO BE NOWHERE NEAR AS FLEXIBLE AS WAS HOPED THE VERY LACK OF CONSTRAINT TURNED OUT TO IMPOSE SEVERE CONSTRAINTS OF ITS OWN ON HOW WORKS OF ART COULD BE EXHIBITED NOR DID THE OLD GALLERIES APPEAL MUCH TO VIEWERS MANY FOUND THEM CHILLY AND ANONYMOUS AND THE OPEN PLAN FAR FROM HELPING TO ORIENT PEOPLE LEFT THEM ESSENTIALLY WITHOUT GUIDANCE ABOUT HOW THE COLLECTION WAS ORGANIZED IN 1991 THOSE NEAR PERFECT GALLERIES CLOSED WHAT HAD BEEN MEANT TO PROVIDE A PERMANENT SOLUTION TO EXHIBITING THE MET'S EXTRAORDINARILY RICH HOLDINGS OF 19THCENTURY EUROPEAN PAINTING LASTED JUST OVER A DECADE GARY TINTEROW CURATOR OF EUROPEAN PAINTINGS AND DAVID HARVEY SENIOR EXHIBITION DESIGNER DECIDED TO LOOK TO THE PAST FOR A REPLACEMENT THE IDEA GOVERNING THE DESIGN OF THE NEW GALLERIES MR TINTEROW WRITES WAS TO CREATE ROOMS SIMILAR IN SCALE AND APPEARANCE TO THOSE FOR WHICH THE ARTISTS CREATED THEIR PICTURES LIGHTING SECURITY AND CLIMATE CONTROL ARE ALL STATE OF THE ART AND THE MODERNIST OPEN PLAN IS HISTORY IN ITS PLACE ARE INTIMATE CLASSICALLY PROPORTIONED ROOMS FULL OF CAREFULLY CONTRIVED BEAUXARTS DETAILING THERE ARE COVES CORNICES COLUMNS AND CORBELS APLENTY HERE ALONG WITH DENTILS ENTABLATURES AND EGGANDDART ORNAMENTATION DOORWAYS BOAST INTRICATELY MOLDED SURROUNDS AND GALLERY WALLS ARE SKIRTED WITH WAINSCOTING THE FLOORS ARE PLEASINGLY PARQUETED OFFWHITE WALLS HAVE GIVEN WAY TO CREAMY GRAYS DARK GREENS AND PLUM REDS MANY UNSUSPECTING VISITORS WILL NO DOUBT THINK THEY HAVE STUMBLED INTO ROOMS LEFT OVER FROM ONE OF THE MET'S MASTER PLANS OF THE 1890S THE ILLUSION IS DELIBERATE MR TINTEROW RECALLS THAT THEY HAD HOPED TO MAKE THE NEW GALLERIES APPEAR AS IF THEY HAD BEEN DESIGNED AND BUILT BY MCKIM MEAD & WHITE AT THE TURN OF THE CENTURY IT MAY BE THAT THE MOST DIFFICULT ARCHITECTURAL CHALLENGE IN DESIGNING AN ART MUSEUM TODAY IS TO BUILD IN A MODERN IDIOM WITH MODERN MATERIALS THERE ARE VERY VERY FEW MODERNIST MUSEUMS THAT CAN COMPETE WITH THE GREAT BUILDINGS OF THE PAST BUT PERHAPS THE SECOND MOST DIFFICULT CHALLENGE IS TO RECREATE THE PAST IN A CONVINCING WAY TO A CONSIDERABLE EXTENT THE NEW GALLERIES AT THE MET SUCCEED BUT IT WAS A RISKY EFFORT IN AN AGE AWASH WITH POSTMODERN POMPOSITY IT IS RARE THAT ONE GETS CLASSICAL DETAILING WITHOUT JOKEY EXAGGERATIONS AND GLEEFUL PARODIES WE MUST BE GRATEFUL THAT MESSRS TINTEROW AND HARVEY HAD THE WIT TO TAKE THEIR CLASSICISM STRAIGHT REVIEWING THE EVOLUTION OF THEIR DESIGN MR TINTEROW NOTES THAT THEY RAIDED THE MET'S ARCHIVES TO STUDY ORIGINAL PLANS BY MCKIM MEAD & WHITE AND THE MET'S OTHER DISTINGUISHED BEAUXARTS ARCHITECTS JOHN RUSSELL POPE AND RICHARD MORRIS HUNT THEIR RESEARCH EVEN TOOK THEM BACK TO DESIGNS BY VIGNOLA AND PALLADIO THE RENAISSANCE PRECURSORS OF BEAUXARTS CLASSICISM IN ORDER TO GET THE DETAILS RIGHT THEY ALSO CONSULTED WITH ALVIN HOLM A PHILADELPHIA ARCHITECT WHO IS AN EXPERT IN CLASSICAL ORDERS THE RESULT IS A CLUTCH OF GALLERIES THAT ARE TASTEFUL QUIETLY SUMPTUOUS AND WELCOMING AND ALTHOUGH THEY OCCUPY THE SAME AREA AS DID THE ANDRE MEYER GALLERIES THE NEW GALLERIES OFFER CONSIDERABLY MORE WALL SPACE FOR EXHIBITING WORKS OF ART ONE ENTERS THE NEW GALLERIES THROUGH A LONG PORTICOLIKE SPACE DEVOTED CHIEFLY TO SCULPTURE BY RODIN BARYE AND PREAULT AND THE SALON CONFECTIONS OF PAINTERS SUCH CABANEL BOUGUEREAU AND BASTIENLEPAGE THE GALLERIES VARIOUSLY SIZED RECTANGLES WITH CEILINGS ABOUT 20 FEET HIGH ARE ARRANGED MORE OR LESS CHRONOLOGICALLY SOME OF THE DOORWAYS ARE PLACED OFFCENTER SO THAT VISITORS CAN MORE EASILY CATCH GLIMPSES OF PAINTINGS IN ADJACENT ROOMS THREE GALLERIES ARE GIVEN OVER TO SCHOOLS NEOCLASSICISM DAVID INGRES PRUD'HON ROMANTICISM GERICAULT TURNER DELACROIX AND THE BARBIZON PAINTERS ROUSSEAU DAUBIGNY MILLET MOST OF THE OTHER GALLERIES FEATURE WORKS BY ONE OR TWO ARTISTS AT THE CENTER IS A LONG GALLERY DEVOTED TO MANET THE SOURCE OF SO MUCH MODERN ART IT IS THE LARGEST OF THE NEW GALLERIES AND PROVIDES AN AESTHETIC AS WELL AS AN ARCHITECTURAL FOCAL POINT FOR THE REST OF THE COLLECTION NORTH AND SOUTH OF MANET ARE SMALL GALLERIES DISPLAYING THE MET'S COURBETS TO THE EAST ARE THREE GALLERIES INHABITED RESPECTIVELY BY DEGAS'S PAINTINGS SCULPTURES AND PASTELS AND TO THE WEST ARE NINE GALLERIES FULL OF IMPRESSIONIST AND POSTIMPRESSIONIST MASTERPIECES CEZANNE RENOIR MONET PISSARRO SISLEY SEURAT GAUGUIN VAN GOGH IT IS THE MOST SPECTACULAR COLLECTION OF SUCH PAINTING IN THE WORLD OUTSIDE THE MUSEE D'ORSAY IN PARIS THE MIDDLE THREE IMPRESSIONIST GALLERIES ARE CURRENTLY DISPLAYING THE GREAT COLLECTION OF 53 FRENCH PAINTINGS AND WATERCOLORS DATING FROM THE 19TH AND EARLY 20TH CENTURIES THAT WALTER H ANNENBERG HAS PROMISED TO BEQUEATH TO THE MET FOR NOW THE ANNENBERG COLLECTION IS ON LOAN TO THE MET UNTIL SOMETIME IN DECEMBER THE GALLERIES WILL THEN BE REHUNG WITH PAINTINGS FROM THE PERMANENT COLLECTION THAT COLLECTION CONTAINS MANY BEAUTIES AND IT IS DIFFICULT TO ISOLATE HIGHLIGHTS YET SOME THINGS DO STAND OUT INGRES'S FAMOUS ODALISQUE IN GRISAILLE FOR EXAMPLE SHIMMERS WITH NEW LIFE AS DO SOME OF THE MET'S COROTS THE THREE GALLERIES DEVOTED TO DEGAS ARE ANOTHER HIGHLIGHT THE MET HAS ONE OF THE FINEST COLLECTIONS OF PAINTINGS BY DEGAS ANYWHERE AND IT IS SHOWN TO PARTICULAR ADVANTAGE HERE THE THOUGHTFUL INSTALLATION BY CLAIRE VINCENT OF DEGAS'S SCULPTURES IN LARGE GLASSPANELED WOODEN CABINETS IS A TRIUMPH ONE MAY BE ALLOWED A FEW QUIBBLES IT IS NOT CLEAR THAT THE RICH COLORS IN WHICH SOME OF THE GALLERIES ARE PAINTED REALLY WORK SOME OF THE GREENS ESPECIALLY COMPETE OVERMUCH WITH THE PAINTINGS THEY ARE MEANT TO SET OFF SOMETHING MORE THAN A QUIBBLE PERHAPS IS DESERVED BY THE PROMINENT DISPLAY GIVEN TO THE HANDFUL OF SALON PAINTINGS THAT GREET VISITORS AS THEY ENTER THE GALLERIES CABANEL'S BIRTH OF VENUS BASTIENLEPAGE'S JOAN OF ARC ETC THESE ARE THIRDRATE EFFORTS THAT DO NOT MERIT SUCH PRIDE OF PLACE IT IS PARTICULARLY UNFORTUNATE THAT THE MET SHOULD HAVE CHOSEN TO EXHIBIT ITS SPLENDID PAINTINGS BY PUVIS DE CHAVANNES NEXT TO SUCH ACADEMIC KITSCH PUVIS'S IDEALIZED CLASSICAL TABLEAUX ARE DIFFICULT TO SEE STRAIGHT TODAY AND PLACING HIS WORK ALONGSIDE THE SUGARY PRODUCTS OF CABANEL BOUGUEREAU AND THE REST DOES HIM GREAT DAMAGE STILL THIS IS THE ONLY SERIOUS LAPSE IN AN OTHERWISE MAGNIFICENT ACHIEVEMENT THE MET AND MESSRS TINTEROW AND HARVEY ARE TO BE HEARTILY CONGRATULATED 9309210098 930921 BUSINESS BRIEF MANVILLE CORP RIVERWOOD SHARE PURCHASE INCREASES HOLDING TO 815 MANVILLE CORP DENVER SAID IT PURCHASED 3448000 SHARES OF RIVERWOOD INTERNATIONAL CORP STOCK INCREASING ITS INTEREST IN THE UNIT TO 815 FROM 80 THE ACTION INFUSES ABOUT 50 MILLION IN CAPITAL INTO RIVERWOOD WHICH HAS BEEN SUFFERING FROM CASH SHORTAGES SINCE ITS ACQUISITION OF MACONKRAFT INC IN JULY 1992 FOR 220 MILLION THE MOVE WAS ANTICIPATED SINCE MANVILLE CHAIRMAN TOM STEPHENS TOLD SHAREHOLDERS IN JUNE THAT MANVILLE MUST BE PREPARED TO INJECT CAPITAL INTO RIVERWOOD TO HELP IT WEATHER DIFFICULTIES IN ADDITION RIVERWOOD COMPLETED THE SALE OF 125 MILLION IN 675 10YEAR CONVERTIBLE SUBORDINATED NOTES A SPOKESWOMAN FOR MANVILLE SAID RIVERWOOD WILL USE PART OF THE 175 MILLION TO FINISH THE CONVERSION OF ONE PAPER MACHINE AT MACON KRAFT FROM LINERBOARD PRODUCTION TO COATEDBOARD PRODUCTION 9309210097 930921 MARKETING & MEDIA ADVERTISING COORS TURNS TO COMPUTER SCREEN HOPING CONSUMERS GET KEYED UP BY KEVIN GOLDMAN WHEN COORS BEER WANTED TO BREAK THROUGH THE ADVERTISING CLUTTER FOR ITS COORS LIGHT BRAND IT DIDN'T SIMPLY THROW MORE MONEY INTO BIGGER TELEVISION AND PRINTAD BUDGETS INSTEAD THE BREW'S MANUFACTURER ADOLPH COORS OF GOLDEN COLO DECIDED TO TREAD WHERE FEW ADVERTISERS HAVE VENTURED THE PERSONAL COMPUTER COORS IS ONE OF A HANDFUL OF COMPANIES NOW ADVERTISING ON PC ONLINE SERVICES SUCH AS PRODIGY THOUGH PRIMITIVE COMPUTER ADS ARE THE FIRST STEP IN WHAT CERTAINLY WILL BE AN EVOLUTION POSING CHALLENGES FOR MADISON AVENUE JUST AS THE MASS TV AUDIENCE IS BEING SLICED THINNER AND THINNER WITH A BURGEONING NUMBER OF ALTERNATIVE PROGRAMMING CHOICES VIEWERS ARE BECOMING MORE JADED TOWARD ADVERTISING ZAPPING AND CHANNEL SURFING ARE ON THE RISE MAKING IT HARDER FOR ADVERTISERS TO CAPTURE CONSUMERS' ATTENTION THAT'S WHY SUCH ATTENTION IS BEING PAID TO THE SOCALLED NEW MEDIAADVERTISING THAT INVOLVES INTERACTIVITY INFOMERCIALS AND MEDIA SUCH AS COMPUTERS AND CDROMS A TWODAY CONFERENCE ON SUCH ADVERTISING COSPONSORED BY THE TRADE PUBLICATIONS MULTIMEDIA WORLD ADWEEK AND AN INDEPENDENT COMPANY TECHMARKETING BEGINS TOMORROW IN NEW YORK COMPUTER ADS ARE CRUDELY ANIMATED COMPARED WITH THOSE ON TELEVISION THEY LACK CATCHY JINGLES MUSIC AND TOPFLIGHT PRODUCTION VALUES BUT ON THE PLUS SIDE THE COMPANY'S LOGO IS VISIBLE AS IS THE PRODUCT'S SLOGAN IN OTHER WORDS THE SPONSOR IS CLEAR AND OFTEN THE COMMERCIAL IS VIEWED BY CHOICE THE COMPUTER CAMPAIGN IS A DEPARTURE FROM TRADITIONAL INTERACTIVE MARKETING WHICH DESPITE ITS FUTURISTICSOUNDING NAME USUALLY IS NO MORE THAN A TOLLFREE NUMBER ALLOWING A CONSUMER TO ORDER MERCHANDISE OR GET MORE INFORMATION ABOUT A PRODUCT THOSE CLOSE TO THE COORS COMPUTER CAMPAIGN PORTRAY IT AS A BIG BREAKTHROUGH COORS IS JUMPING ON BOARD TO GET A HANDLE ON ONETOONE COMMUNICATION WITH CONSUMERS SAYS DOYLE ALBEE ACCOUNT SUPERVISOR WITH INTEGER GROUP THE COORS PROMOTIONAL AGENCY SUCH ADVERTISING WILL FUNDAMENTALLY CHANGE THE ADVERTISERCONSUMER RELATIONSHIP CONTENDS CHET THOMPSON VICE PRESIDENT AND GENERAL MANAGER OF ADVERTISING AND MERCHANDISING FOR PRODIGY SERVICES BASED IN WHITE PLAINS NY THE PRODIGY PROGRAM ON WHICH THE ADS APPEAR IS COORS LIGHT FAN PICKS POLL A SPORTS FAN'S ANSWER TO THE ASSOCIATED PRESS COLLEGE FOOTBALL POLL WHICH TAKES THE PULSE OF 65 SPORTSWRITERS AND BROADCASTERS COORS'S FAN POLL IS PRODUCED IN CONJUNCTION WITH THE PERIODICAL SPORTING NEWS THE MORE THAN TWO MILLION PRODIGY SUBSCRIBERS CAN TAP INTO A FULL MENU TITLED COLLEGE FOOTBALL TO LEARN SCORES AND THE ODDS OF VARIOUS TEAM PAIRINGS ON THE BOTTOM SIXTH OF EACH SCREEN THERE ARE ADS FOR COORS LIGHT ONE FEATURING A MOUNTAIN SCENE ANOTHER SHOWING THE ACTUAL PRODUCT BY PRESSING A BUTTON A SUBSCRIBER CAN PARTICIPATE IN THE POLL BEFORE THE POLLING BEGINS COORS LOGOS APPEAR ON THE SCREEN A PARTICIPANT SELECTED AT RANDOM CAN INSTANTLY WIN A SUBSCRIPTION TO SPORTING NEWS SORRY NO COORS GIVEAWAYS THERE ARE LAWS RESPONSE TO THE COORS ADVERTISEMENT WHICH BEGAN SEPT 1 EXCEEDED EXPECTATIONS SAYS MR ALBEE ALTHOUGH HE DECLINES TO DISCLOSE NUMBERS OF USERS THE COORS AD FEATURES A CURIOUS TWIST PRODIGY SUBSCRIBERS WHO ARE UNDER 21 YEARS OLD CAN'T VIEW OR PARTICIPATE IN THE POLL BECAUSE STATE LAWS PROHIBIT THOSE UNDER 21 FROM IMBIBING ALCOHOLIC BEVERAGES PRODIGY HAS LOCKED OUT UNDERAGE DRINKERS INSTEAD OF THE POLL THE UNDER21 CROWD SEES A PUBLIC SERVICE ANNOUNCEMENT ABOUT UNDERAGE DRINKING PRODIGY KNOWS THE AGES OF SUBSCRIBERS WHO COMPLETE VOLUNTARY USERPROFILE FORMS WE HAVE NO DESIRE TO DELIVER OUR MESSAGE TO CONSUMERS UNDER 21 SAYS MR ALBEE IT'S BAD TARGETING OF OUR MARKETING DOLLARS HE POINTS OUT THAT COORS CAN'T SO PRECISELY CIRCUMVENT YOUNGER CONSUMERS WHEN IT PURCHASES AD TIME ON TELEVISION THE ADS ARE PRODUCED BY MODEM MEDIA A WESTPORT CONN ADVERTISING AGENCY THAT SPECIALIZES IN INTERACTIVE MARKETING BOB ALLEN MODEM'S DIRECTOR OF NEW BUSINESS DEVELOPMENT SAYS THE COMPANY IS THE NEW MADISON AVENUE A VIEW THAT IS ENDORSED BY CLIENT AMERICAN TELEPHONE & TELEGRAPH AT&T IS USING MODEM MEDIA TO EXPLORE THE NEW TECHNOLOGY AND EMBRACE IT SAYS BILL CLAUSEN ADVERTISING MANAGER FOR AT&T'S 800SERVICE COORS'S COMPUTERIZED ADS ARE PERHAPS THE MOST SOPHISTICATED CURRENTLY RUNNING BUT THE MOST POLISHED MARKETING INVOLVING PCS TO DATE WAS FOR SNEAKERS A 1992 MOVIE STARRING ROBERT REDFORD AS PART OF THE FILM'S MARKETING STRATEGY CONSUMERS WERE MAILED COMPUTER DISKS THAT GUIDED THEM THROUGH THE MOVIE'S PLOT THE ADVERTISING ON COMPUTERS WILL BE EFFECTIVE PREDICTS JOSHUA HARRIS PRESIDENT OF NEW YORKBASED JUPITER COMMUNICATIONS A MARKET RESEARCH FIRM THAT SPECIALIZES IN ELECTRONIC RETAILING BECAUSE USERS ARE MAKING A CONSCIOUS DECISION TO VIEW THE COMMERCIAL AND AREN'T SITTING PASSIVELY DISENGAGED FROM THE MESSAGE PASSIVE TELEVISION ISN'T GOING AWAY SAYS MR HARRIS BUT ADVERTISERS AND THEIR AGENCIES ARE GOING TO HAVE TO SIT UP AND TAKE NOTICE OF THIS NEW MEDIA BECAUSE IT'S JUST GOING TO GROW AND CONTINUE TO BE FINETUNED LESS THAN A WEEK AFTER UNEXPECTEDLY LOSING THE 80 MILLION REEBOK INTERNATIONAL LTD ACCOUNT THE NEW YORK OFFICE OF CHIAT/DAY WON NYNEX CORP'S BIG MEDIABUYING BUSINESS WHICH HAD BEEN IN REVIEW FOR 15 MONTHS BILLINGS ARE BELIEVED TO EXCEED 60 MILLION ALTHOUGH LESS LUCRATIVE THAN A FULLSERVICE ACCOUNT THE NYNEX MEDIA ASSIGNMENT IS A WELCOME WIN FOR CHIAT/DAY THE AGENCY YESTERDAY PUBLICLY LICKED ITS WOUNDS FROM THE REEBOK LOSS BY PLACING AN UNUSUALLY CANDID FULLPAGE AD IN YESTERDAY'S NEW YORK TIMES HEADLINED NOW WE KNOW HOW DAN FELT THE AD WHICH COST ABOUT 60000 RECALLED SEVERAL CAMPAIGNS CHIAT/DAY CREATED FOR REEBOK INCLUDING THE ILLFATED OLYMPICS CAMPAIGN FEATURING ATHLETES DAN O'BRIEN AND DAVE JOHNSON WE TOO BUSTED OUT BUTTS THE AD READ IN PART REFERRING TO MR O'BRIEN WHO FAILED TO QUALIFY FOR THE OLYMPIC TEAM AND HOBBLED REEBOK'S OLYMPICS BLITZ ONLY TO LOSE THE ACCOUNT ONE AFTERNOON LAST WEEK THE AD CONTINUED THREE WEEKS AFTER THE OLYMPICS DAN O'BRIEN WENT TO TALENCE FRANCE AND SHATTERED THE WORLD'S DECATHLON RECORD YOU HAVEN'T HEARD THE LAST OF US EITHER A REEBOK SPOKESMAN SAID CHIAT/DAY IS REINFORCING WHAT WE SAID THAT ITS CREATIVE WAS TERRIFIC CHIAT WAS FIRED IN FAVOR OF LEO BURNETT CHICAGO REEBOK SAID BECAUSE OF BURNETT'S WORLDWIDE MARKETING CAPABILITY THE PUBLISHER OF READER'S DIGEST MAGAZINE THE LARGEST CIRCULATION CONSUMER MAGAZINE IN THE US SAID IT PLANS TO REDUCE BY MORE THAN ONE MILLION THE NUMBER OF SUBSCRIBERS IT GUARANTEES TO ADVERTISERS TO 15 MILLION FROM 1625 MILLION THE RATE BASE REDUCTION STARTS WITH THE JANUARY 1994 ISSUE READER'S DIGEST ASSOCIATION SAID ALTHOUGH THE MAGAZINE WILL GUARANTEE FEWER SUBSCRIBERS IN 1994 IT SAID IT WILL CHARGE ADVERTISERS THE SAME PRICE FOR A ONEPAGE COLOR AD 153600 AS IT DOES THIS YEAR THE MOVE WILL ENHANCE THE FINANCIAL HEALTH OF THE MAGAZINE AND ENABLE US TO FREEZE NATIONAL AD RATES AT 1993 LEVELS FOR ANOTHER YEAR THE COMPANY SAID A SPOKESMAN SAID ELIMINATING LESS PROFITABLE SUBSCRIBERS ALLOWS THE PUBLISHER TO INVEST IN GENERATING BETTER CUSTOMERS FOR OUR OTHER PRODUCTS INCLUDING BOOKS AND AUDIO AND VIDEO PRODUCTS SOLD BY MAIL REVIEW CNBC THE CABLE BUSINESS NEWSANDTALK NETWORK SAID IT HAS BEGUN A SEARCH FOR AN AD AGENCY TO HANDLE ITS ESTIMATED 10 MILLION ACCOUNT CONFIRMING A REPORT IN ADWEEK MAGAZINE KIRSHENBAUM & BOND NEW YORK IS BELIEVED TO BE AMONG THE EARLY CONTENDERS CNBC OWNED BY GENERAL ELECTRIC'S NBC NETWORK NAMED ROGER AILES THE REPUBLICAN MEDIA STRATEGIST AS ITS PRESIDENT LAST MONTH HE IS EXPECTED TO PLAY A BIG ROLE IN PICKING THE AGENCY WHO'S NEWS AS EXPECTED FALLONMCELLIGOTT MINNEAPOLIS NAMED MARK GOLDSTEIN PRESIDENT IN CHARGE OF INTEGRATED MARKETING A NEW POSITION MR GOLDSTEIN HAD BEEN PRESIDENT OF THE BETHESDA MD AGENCY EARLE PALMER BROWN 9309210096 930921 BUSINESS BRIEF GENESIS HEALTH VENTURES INC GERIATRICCARE CONCERN PLANS TO BUY MERIDIAN HEALTHCARE GENESIS HEALTH VENTURES INC SAID IT WILL ACQUIRE MERIDIAN HEALTHCARE A PRIVATELY HELD LONGTERM CARE COMPANY FOR 134 MILLION GENESIS ALSO SAID IT PLANS TO PAY OFF ABOUT 71 MILLION OF DEBT FROM THE PURCHASE OVER TIME IN ADDITION THE KENNETT SQUARE PA COMPANY NEGOTIATED A 10YEAR OPTION TO PURCHASE FOR 59 MILLION SEVEN GERIATRICCARE FACILITIES THAT MERIDIAN LEASES THE TRANSACTION SUBJECT TO REGULATORY APPROVALS IS SCHEDULED TO BE COMPLETED IN THE FOURTH QUARTER OF THIS YEAR GENESIS A PROVIDER OF HEALTHCARE SERVICES TO THE ELDERLY IN THE EASTERN US SAID THE ACQUISITION WILL SIGNIFICANTLY ENHANCE ITS PRESENCE IN SEVERAL REGIONS AND COMPLEMENT ITS EXISTING HEALTHCARE NETWORKS GENESIS HAD REVENUE OF 196 MILLION IN 1992 MERIDIAN BASED IN TOWSON MD OWNS OR MANAGES 36 GERIATRICCARE FACILITIES IN FIVE STATES WITH A TOTAL OF 5645 BEDS GENESIS SAID THE MERGER WILL RESULT IN THE CONSOLIDATION OF SOME POSITIONS WITHIN THE TWO CENTRAL CORPORATE OFFICES BUT THERE WILL NOT BE ANY JOB LOSS WITHIN THE CARE FACILITIES OF EITHER COMPANY IT SAID ADDING THAT MERIDIAN'S SENIOR EXECUTIVES WILL ASSUME SENIOR MANAGEMENT POSITIONS WITH GENESIS 9309210095 930921 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 309 60 TO 119 DAYS 318 120 TO 179 DAYS 320 180 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 314 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 274 SIX MONTHS 289 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 313 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 90 DAYS 315 120 DAYS 315 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 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 3/16 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY SEPTEMBER 20 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 293 13 WEEKS 306 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 668 60 DAYS 676 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 664 60 DAYS 674 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 490 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 9309210094 930921 TECHNOLOGY BRIEF SOUTHWESTERN BELL CORP RATE CUT SET FOR PHONE USE AWAY FROM HOME SYSTEMS SOUTHWESTERN BELL CORP SAID IT PLANS TO LOWER CELLULAR RATES FOR CUSTOMERS WHO USE THEIR PHONES AWAY FROM HOME SYSTEMS A PRACTICE KNOWN AS ROAMING CELLULAR USERS WHO INCREASINGLY ROAM FROM THEIR HOME TERRITORIES WHILE USING THEIR PHONES HAVE LONG COMPLAINED ABOUT THE HIGH COSTS OF MAKING SUCH CALLS IN MOST CASES USERS MUST PAY A DAILY ROAMING FEE OF 3 OR MORE AS WELL AS HIGHER AIR TIME CHARGES WHEN CALLING FROM A TERRITORY SERVED BY ANOTHER CELLULAR CARRIER THE SAN ANTONIO COMPANY DIDN'T ESTIMATE THE AVERAGE RATE CUT SOUTHWESTERN BELL SAID ITS BELL'S SOUTHWESTERN BELL MOBILE SYSTEMS UNIT REACHED TENTATIVE AGREEMENTS WITH SEVERAL COMPANIES TO LOWER ROAMING RATES IN 361 MARKETS ABOUT 25 OF ALL CELLULAR MARKETS THE AGREEMENTS WILL ELIMINATE THE DAILY CHARGE AND LOWER THE AIR TIME CHARGES 9309210093 930921 MARKETING BRIEF NOTED WHO'S NEWS KIII MAGAZINES A UNIT OF KIII COMMUNICATIONS CORP NAMED MIDGE RICHARDSON TO THE NEWLY CREATED POST OF EDITOR AT LARGE ENDING HER 18YEAR TENURE AS EDITOR IN CHIEF OF SEVENTEEN MAGAZINE AS EDITOR AT LARGE MS RICHARDSON 63 YEARS OLD WILL ASSIST HARRY MCQUILLAN PRESIDENT OF KIII MAGAZINES WITH A VARIETY OF EDITORIAL PROJECTS INCLUDING NEW MAGAZINES AND POSSIBLE ACQUISITIONS NANCY HESSELWEBER CREATIVE DIRECTOR AT SEVENTEEN WILL ASSUME DAYTODAY RESPONSIBILITIES FOR THE MAGAZINE WHILE A SEARCH FOR A SUCCESSOR IS CONDUCTED MS HESSELWEBER 45 IS ALSO A CANDIDATE FOR THE TOP POSITION 9309210092 930921 BUSINESS BRIEF APACHE CORP NONCASH CHARGES TO LOWER EARNINGS IN THIRD QUARTER APACHE CORP HOUSTON SAID TWO NONCASH CHARGES IN THE THIRD QUARTER WILL LOWER ITS EARNINGS BY 78 MILLION OR 15 CENTS A SHARE IN THE YEARAGO THIRD QUARTER APACHE HAD NET INCOME OF 85 MILLION OR 18 CENTS A SHARE ON REVENUE OF 1113 MILLION THE ENERGY COMPANY SAID AN ACCOUNTING RULE CHANGE WILL RESULT IN APACHE TAKING A NONRECURRING CHARGE OF 35 MILLION OR SEVEN CENTS A SHARE ALSO THE COMPANY SAID IT WILL WRITE DOWN THE CARRYING VALUE OF ASSETS IN WEST AFRICA BY 43 MILLION OR EIGHT CENTS A SHARE AS IT REFOCUSES ITS INTERNATIONAL PORTFOLIO TOWARD AUSTRALIA AND SOUTHEAST ASIA APACHE RECENTLY ACQUIRED TWOTHIRDS OF THE COMMON STOCK OF HADSON ENERGY RESOURCES CORP AND BOTH COMPANIES HAVE PRODUCTION OFFSHORE WESTERN AUSTRALIA 9309210091 930921 FOR THESE RESIDENTS EPA CLEANUP RULING MEANS PARADISE LOST TOWNSFOLK OF TRIUMPH IDAHO HAPPY ON TAINTED' LAND REJECT AGENCY'S FINDINGS BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL TRIUMPH IDAHO DAN TUCKER LIVES AT THE EPICENTER OF WHAT THE ENVIRONMENTAL PROTECTION AGENCY BELIEVES MAY BE THE MOST HAZARDOUS WASTE SITE IN THE US IT'S PARADISE HE SAYS SITTING ON HIS BACK PORCH IN THIS SCENIC FORMER MINING TOWN NEAR SUN VALLEY MR TUCKER 43 YEARS OLD GAZES AT THE HILLS SIPPING WELL WATER IN WHICH THE EPA HAS FOUND HIGH LEAD LEVELS HE USES THE SAME WATER TO HOSE DOWN A PLASTIC SLIP SLIDE FOR HIS TWO YOUNG DAUGHTERS TO FLOP ON FACE FIRST AND SKID ACROSS A YARD THAT THE EPA SAYS IS LACED WITH LEAD AND ARSENIC FLANKING MR TUCKER'S HOME ONCE THE MACHINE SHOP FOR A LEAD AND SILVER MINE LIE PILES OF CONTAMINATED WASTE ON DRY SUMMER DAYS THE WIND SWEEPS THE DUST ONTO NEARBY HOMES AND GARDENS THE EPA EVEN FOUND HEAVY METALS INSIDE THE TUCKERS' VACUUM CLEANER YET THE FENCEBUILDER LIKE HIS NEIGHBORS SAYS HE ISN'T PUTTING HIS FAMILY AT RISK MY GIRLS ARE FINE THE DOG'S HEALTHY THE LAWN LOOKS GOOD AND I'M NO MORE DEMENTED THAN I WAS WHEN I CAME HERE 21 YEARS AGO HE SAYS MAKING LIGHT OF LEAD'S IMPACT ON IQ LEVELS I WISH THEY WOULD JUST LEAVE US ALONE THE EPA ISN'T COOPERATING THE AGENCY HAS NOMINATED TRIUMPH FOR SUPERFUND CLEANUP AND CONFERRED ON IT AN INITIAL RISK RATING THAT EXCEEDS ANY EVER GIVEN TO ONE OF THE NATION'S 1200ODD SUPERFUND SITES INCLUDING TIMES BEACH MO AND LOVE CANAL IN NEW YORK BRACED FOR BATTLE AGAINST TRIUMPH'S TOXINS THE EPA HAS BEEN AMBUSHED INSTEAD BY TRIUMPH'S INHABITANTS ALL 46 OF THEM RESIDENTS INSIST THAT TRIUMPH'S LEAD AND ARSENIC ARE MUCH LESS POISONOUS TO THEM THAN THE PROSPECT OF BACKHOES AND BUREAUCRATS TAKING OVER THEIR TOWN THEY ALSO INTEND TO DEFEND EVERY CLOD OF CONTAMINATED SOIL WE LOOK LIKE WE'RE A BUNCH OF HICKS IN THE STICKS THAT THE EPA CAN JUST MOW OVER SAYS WENDY COLLINS A LOCAL ACTIVIST BUT I DON'T THINK IT WILL LOOK SO GOOD WHEN HOUSEWIVES START CHAINING THEMSELVES TO BULLDOZERS TRIUMPH NAMED FOR A CENTURYOLD MINING CLAIM IS BOTH STUNNING AND BADLY SCARRED NESTLED ON THE FLOOR OF A 6000FOOTHIGH CANYON THE TOWN'S 17 HOMES MOSTLY FORMER MINERS' COTTAGES RING A MOONSCAPE OF MINE TAILINGS THAT LOCALS CALL THE BLACK SAND ON ONE SIDE OF TOWN RUNS A RIVER THICK WITH BEAVER ON THE OTHER SOARS A MOUNTAIN OF MINE WASTE TOPPED BY ABANDONED MACHINERY AND THE RUINS OF A MINE THAT OPENED IN 1882 THIS SETTING HAS KEPT LAND AFFORDABLE AND DRAWN RESIDENTS SO ECCENTRIC THAT THEY JOKINGLY SUGGEST TRIUMPH AS THE SET FOR A TV SERIES CALLED WESTERN EXPOSURE WHEN THE MINE CLOSED IN 1957 A RELIGIOUS CULT CALLED THE SAUCER PEOPLE MOVED IN AWAITING THE RETURN OF CHRIST ON A FLYING SAUCER THEN CAME REFUGEES OF THE 1960S COUNTERCULTURE MANY OF WHOM REMAIN ALL THAT BEGAN TO CHANGE TWO YEARS AGO WHEN THE EPA CAME TO TOWN THE AGENCY HELD A MEETING TO WARN RESIDENTS THAT THEIR AIR SOIL AND WATER WERE BADLY FOULED EXPERTS FROM ATLANTA EXPLAINED HOW CHILDHOOD EXPOSURE TO LEAD COULD LOWER IQ WHILE ARSENIC MIGHT POISON RESIDENTS OR CAUSE CANCER SHE ALSO FELT TRAPPED SINCE THE EPA'S ARRIVAL BANKS HAVE REFUSED LOANS TO RESIDENTS AND REALESTATE AGENTS SAY THE THREAT OF A SUPERFUND LISTING MAKES HOUSES HERE ALMOST UNSALABLE WE'RE LOWERMIDDLE CLASS OUR PROPERTY IS EVERYTHING SAYS MS HEATH A SEAMSTRESS AND PARTTIME BOOKKEEPER BUT SOON AFTER THAT FIRST MEETING TRIUMPH EXPERIENCED ANOTHER SHOCK BLOOD AND URINE TESTS SHOWED THAT RESIDENTS' LEAD AND ARSENIC LEVELS WERE NORMAL AND WELL BELOW THOSE IN BIG CITIES ADULTS WHO GREW UP IN TRIUMPH OFTEN PLAYING IN THE BLACK SAND ALSO SHOWED NO ILL EFFECTS MOREOVER ALL BUT ONE RETEST OF THE TOWN'S WELL FAILED TO SHOW SIGNS OF HIGH LEAD CONTENT WITH HER BOOKKEEPER'S EYE MS HEATH ALSO BEGAN TO NOTICE ERRORS FOR INSTANCE THE EPA ISSUED IDENTICAL ALARMING RESULTS FROM SOIL TESTS TAKEN ALL ACROSS TOWN YOU WERE INADVERTENTLY GIVEN THE WRONG SAMPLE RESULTS FOR YOUR PROPERTY THE AGENCY WROTE IN A FOLLOWUP MAILING SUCH FLUBS MADE MS HEATH WONDER HOW MANY OTHER ERRORS WERE IN THE SYMBOLS AND CHARTS THAT THE RESIDENTS COULDN'T UNDERSTAND SHE ALSO WAS IRKED BY THE EPA'S ATTITUDE WHEN SHE AND OTHER PARENTS OFFERED THEIR CHILDREN'S BABY TEETH WHICH HAVE BEEN USED TO STUDY LEAD EXPOSURE ELSEWHERE THE EPA REFUSED SAYING SUCH RESEARCH MUST AWAIT ANOTHER PHASE CHRIS FIELD THE EPA'S ONSITE COORDINATOR CONCEDES THAT CERTAIN ERRORS HAVE BEEN MADE BUT OVERALL WE STAND BEHIND OUR DATA HE SAYS THAT DATA CLEARLY SUGGESTS TO THE EPA THAT THE TOXINS MAY IMPERIL RESIDENTS PARTICULARLY CHILDREN MR FIELD ADDS THAT HEALTH TESTS FOUR SO FAR AREN'T CONCLUSIVE BECAUSE THEY ONLY SHOW RECENT EXPOSURE WE'RE THE ENVIRONMENTAL PROTECTION AGENCY NOT THE ENVIRONMENTAL REACTION AGENCY HE SAYS IT'S OUR JOB TO PROTECT HEALTH NOT WAIT FOR ADVERSE HEALTH BEFORE WE ACT UNCONVINCED TRIUMPH HAS CHOSEN TO MOBILIZE AND FOUND AN APPROPRIATELY UNORTHODOX LEADER IN DONNA ROSE A 47YEAROLD ART DEALER WHO KEEPS A SHOTGUN BY HER KITCHEN DOOR AND WHO DRESSES IN BAGGY SWEATSHIRTS AND TECHNICOLOR TIGHTS ARMED WITH A VIDEO CAMERA MS ROSE VISITED OTHER SUPERFUND SITES AND GATHERED TESTIMONY ABOUT THE PROGRAM'S HISTORY OF COST AND TIME OVERRUNS SHE PLOWED THROUGH TEXTS SUCH AS BASIC TOXICOLOGY TO FIND STUDIES THAT CAST DOUBT ON THE EPA'S STANCE AND SHE THRUST IT ALL ON HER NEIGHBORS MANY OF WHOM NOW DISCUSS THE MICHIGAN SWINE STUDY ON BIOAVAILABILITY AS EASILY AS THEY DO THE WEATHER MS ROSE ALSO HAS SWAYED IDAHO'S CONGRESSMEN AND FOUND LAWYERS AND SCIENTISTS WILLING TO GIVE FREE ADVICE THE RESULT WHEN THE EPA FORMALLY REQUESTED PUBLIC COMMENT THIS SUMMER ON ITS PROPOSED SUPERFUND LISTING TRIUMPH FIRED BACK ALMOST 1000 PAGES ARGUING THAT THE EPA HAD GROSSLY EXAGGERATED THE RISK TO THE TOWN I HAVEN'T RUN INTO THIS STRONG AND ORGANIZED AN OPPOSITION IN MY TIME AT THE EPA SAYS MICHELLE PIRZADEH A 10YEAR VETERAN AT THE AGENCY'S SEATTLE OFFICE ALMOST EVERY ADULT IN TRIUMPH SIGNED THE ANTISUPERFUND PETITION AND A DOORTODOOR TOUR OF THE TOWN TURNS UP NO DISSENTERS WHILE SOME RESIDENTS SAY THEY WOULD ACCEPT A LIMITED CLEANUP A CAP ON THE MINE TAILINGS FOR INSTANCE THEY OPPOSE THE OPENENDED MULTIMILLIONDOLLAR PROCESS TRIGGERED BY A SUPERFUND LISTING WOULD YOU HIRE A CONTRACTOR WHO HAS NO REFERENCES OF A SUCCESSFUL JOB WELL DONE HAS NEVER COME IN AT COST AND WHO SPENDS MOST OF HIS MONEY ON LEGAL FEES ASKS 50YEAROLD MS COLLINS THE ACTIVIST VOICING COMMON CRITICISMS OF SUPERFUND THE EPA'S MR FIELD SAYS THE AGENCY WANTS TO AVOID A CONFRONTATION BUT THE EPA HAS NO CHOICE OTHER THAN TO PRESS AHEAD IN PART BECAUSE A SUPERFUND LISTING IS THE ONLY WAY TO FREE FUNDS FOR FURTHER STUDY WE'RE LOCKED IN HE SAYS SO TOO IT SEEMS ARE TRIUMPH RESIDENTS WHILE A FINAL DECISION ON THE SUPERFUND LISTING STILL IS MONTHS AWAY THE EPA HOPES TO START AN EMERGENCY CLEANUP OF RESIDENTS' YARDS PERHAPS AS EARLY AS THIS FALL IF IT GOES AHEAD TRIUMPH RESIDENT CHRIS KLICK WARNS THAT THERE COULD BE SOME ANARCHY HERE MR KLICK 46 WHO OWNS A SHEETMETAL WORKSHOP SAYS HE WENT OUT AND BOUGHT 1000 ROUNDS OF 9MM AMMUNITION THAT'S MY PUBLIC COMMENT IF THE EPA APPROACHES HIS YARD HE SAYS I'M GOING TO BE STANDING AT THE GATE WITH A GUN THAT'S THE WAY OF THE WEST HE DOESN'T PLAN TO SHOOT ANYONE BUT HE DOES INTEND TO HOLD HIS GROUND FORCING THE EPA TO CALL OUT THE NATIONAL GUARD OTHERS SAY THEY WILL DO THE SAME BY BLOCKING THE ROAD WITH SNOWMOBILES OR CHAINING THEMSELVES TO TREES MR KLICK'S REASONING IS TYPICAL THE HEALTH TESTS AND READING HE HAS DONE HAVE CONVINCED HIM THAT THE TOXINS IN TRIUMPH ARE HARD TO INGEST AND EVEN HARDER TO CLEAN UPTHOUGH BOTH POINTS REMAIN SUBJECT TO SCIENTIFIC DEBATE AND HE FEELS THAT WHATEVER RISK DOES EXIST MUST BE WEIGHED AGAINST THE OTHERWISE HEALTHY ENVIRONMENT TRIUMPH OFFERS WITH ITS LACK OF CITY SMOG STRESS AND CRIME IN THE END HE ADDS THE FIGHT BOILS DOWN TO A VERY AMERICAN PRINCIPLE THE RIGHT TO CHOOSE AND ACCEPT THE CONSEQUENCES FOR NOW FOLKS IN TRIUMPH ARE DOING JUST THAT MS ROSE THE ART DEALER ENJOYS WINDSURFING ACROSS THE PONDS THAT FORM ON THE MINE TAILINGS OTHERS KEEP TILLING THEIR GARDENS JOKING ABOUT HUGE MUTANT CARROTS AND ABOUT ICE CUBES THAT SINK BECAUSE OF ALL THE LEAD AS FOR MR KLICK LEAD AND ARSENIC PALE BESIDE OTHER RISKS I SKI DOWN AVALANCHE CHUTES I RACE DUNE BUGGIES IN THE DESERT I RIDE A MOTORCYCLE I HUNT HE SAYS LIVING IN TRIUMPH IS THE SAFEST THING I DO 9309210090 930921 BUSINESS BRIEF 3COM CORP FISCAL 1STQUARTER EARNINGS JUMPED ON RISING DEMAND NET INCOME WAS 261 MILLION OR 80 CENTS A SHARE COMPARED WITH 59 MILLION OR 20 CENTS A SHARE A YEAR EARLIER SALES JUMPED 20 TO 1621 MILLION FROM 1356 MILLION BEFORE A GAIN ON THE SALE OF AN INVESTMENT 3COM HAD EARNINGS FROM OPERATIONS OF 134 MILLION OR 41 CENTS A SHARE ORDERS ROSE 20 TO 157 MILLION THE OPERATING RESULTS WERE HIGHER THAN THE MEAN ESTIMATE BY ANALYSTS OF 34 CENTS A SHARE ERIC BENHAMOU 3COM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE RECORD EARNINGS REFLECT STRONG DEMAND FOR THE COMPANY'S PRODUCTS ESPECIALLY LINKBUILDER HUBS AND NETBUILDER II ROUTERS DEVICES THAT CONNECT COMPUTERS AND DIRECT DATA TRAFFIC 9309210089 930921 BUSINESS BRIEF HORIZON HEALTHCARE CORP CARECENTER OPERATOR POSTS SURGE IN NET FOR FIRST PERIOD BOLSTERED BY HIGHER REVENUE FROM SPECIALTY SERVICES HORIZON HEALTHCARE CORP SAID NET INCOME FOR ITS FISCAL FIRST QUARTER ENDED AUG 31 NEARLY DOUBLED TO 28 MILLION OR 24 CENTS A SHARE COMPARED WITH 15 MILLION OR 13 CENTS A SHARE A YEAR EARLIER REVENUE JUMPED TO 75 MILLION FROM 467 MILLION THE PERSHARE RESULTS WERE HIGHER THAN THE 19 CENTS A SHARE ANALYSTS PROJECTED FOR THE ALBUQUERQUE NM OPERATOR OF LONGTERM HEALTHCARE CENTERS HORIZON SHARES WERE UP 1125 AT 1425 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY NEAL ELLIOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE RESULTS TO HORIZON'S FOCUS ON SPECIALTY SERVICES INCLUDING CLINICAL LABORATORIES AND INSTITUTIONAL PHARMACIES REVENUES FROM THAT AREA WERE 233 MILLION NEARLY DOUBLE THE 117 MILLION A YEAR EARLIER 9309210088 930921 TEXAS INSTRUMENTS DALLAS TEXAS INSTRUMENTS INC SAID IT WILL REDEEM 1496 SHARES OF ITS AUCTIONRATE PREFERRED STOCK WITH AN AGGREGATE LIQUIDATION VALUE OF 1496 MILLION THE ELECTRONICS AND DEFENSE CONCERN SAID SPECIFIC SERIES OF PREFERRED STOCK TO BE REDEEMED ARE MONEY MARKET CUMULATIVE PREFERRED STOCK SERIES 2 AND MARKET AUCTION PREFERRED STOCK SERIES A1 AFTER THE REDEMPTIONS NO AUCTIONRATE PREFERRED STOCK WILL REMAIN OUTSTANDING THE COMPANY SAID 9309210086 930921 PRICING HEALTH CARE THIS FEDERAL HEALTH PLAN WORKED TOO WELL BY LAUREL SHACKELFORD BEFORE OKAYING ANY PLAN THAT ATTEMPTS TO INCREASE ACCESS TO HEALTH CARE WHILE HARNESSING COSTS CONGRESS OUGHT TO REEXAMINE THE GOVERNMENTFUNDED ENDSTAGE RENAL DISEASE PROGRAM IT SHOWS THAT PERTREATMENT COSTS CAN BE CONTROLLED BY SETTING LIMITS ON WHAT PROVIDERS ARE PAID BUT CONTROLLING THE VOLUME IS VASTLY MORE COMPLEX INDEED IT IMPLIES THAT CONTAINING COSTS IS NOT SIMPLY A MATTER OF CAPPING FEES AND TRIMMING WASTE BUT REQUIRES MAKING CHOICES OFTEN WRENCHING CHOICES ABOUT WHO WILL BE TREATED AND WHO WILL NOT THE ENDSTAGE RENAL DISEASE PROGRAM IS FOR PEOPLE WITH CHRONIC KIDNEY FAILURE AN INCURABLE CONDITION THAT IS ALWAYS FATAL WITHOUT TREATMENT WHEN THEY CREATED THE PROGRAM IN 1972 MEMBERS OF CONGRESS DID NOT MAKE BENEFITS CONTINGENT ON MEDICAL SUITABILITY ABILITY TO BENEFIT OR ANY OTHER CIRCUMSTANCE THEY SIMPLY SAID THAT THOSE WHO REQUIRE DIALYSIS TREATMENT OR A KIDNEY TRANSPLANT COULD HAVE IT AT GOVERNMENT EXPENSE THE RESULT WAS THAT MANY MORE PEOPLE SOUGHT TREATMENT AND PHYSICIANS HASTENED TO PROVIDE IT AND WHY NOT THEY WERE DOING EXACTLY AS CONGRESS INSTRUCTED PROVIDING CARE TO THOSE PEOPLE WHO REQUIRE DIALYSIS OR KIDNEY TRANSPLANTATION BEFORE THE PROGRAM BEGAN THE ONLY PEOPLE CONSIDERED SUITABLE FOR DIALYSIS WERE THOSE BETWEEN THE AGES OF 20 AND 55 BUT THE TREATMENT COST SO MUCH THAT FEW INDIVIDUALS COULD AFFORD IT THIS AMOUNTED TO RATIONING BY DEFAULT THERE WERE FEW MARKET INCENTIVES TO BUILD DIALYSIS CENTERS SO FEW WERE BUILT WHEN UNIVERSAL GOVERNMENT FINANCING BECAME AVAILABLE HOWEVER PHYSICIANS NO LONGER HAD A BASIS FOR DENYING TREATMENT TO ANY PEOPLE WHO WOULD BENEFIT THE PUBLIC CLAMORED FOR UNIVERSAL ACCESS AND THE MARKET RESPONDED THE CAPACITY TO TREAT KIDNEY DISEASE QUICKLY EXPANDED DURING THE 1980S NEPHROLOGISTS WERE MADE EVEN BUSIER BY AN INCREASE IN THE INCIDENCE OF KIDNEY DISEASE DUE TO POPULATION SHIFTS SUCH AS AN INCREASE IN THE NUMBER OF ELDERLY PEOPLE AND MORE TYPE II DIABETICS THUS A PROGRAM THAT INITIALLY SERVED 11000 PEOPLE TODAY SERVES 165000 AND IS EXPECTED TO SOON HAVE 300000 BENEFICIARIES ALL OF THIS COMES WITH A PRICE TAG OF COURSE FOR THE INITIAL LEGISLATION THE SENATE SPONSOR VANCE HARTKE ESTIMATED THAT THE ENDSTAGE RENAL DISEASE PROGRAM WOULD COST 35 MILLION TO 75 MILLION ITS FIRST YEAR AND THAT COSTS WOULD RISE TO 250 MILLION BY THE END OF 1977 BUT FIRSTYEAR COSTS WERE 229 MILLION AND REACHED 1 BILLION BY 1977 IN 1991 THE PROGRAM COST 66 BILLION EVEN SO EFFORTS BY MEDICARE WHICH ADMINISTERS THE PROGRAM TO CONTROL PERPATIENT COSTS HAVE BEEN A GREAT SUCCESS ADMINISTRATORS CAPPED THE REIMBURSEMENT RATE EARLY AND STEADFASTLY REFUSED TO RAISE ITNOT EVEN TO COMPENSATE FOR INFLATION TWICE THE RATE WAS LOWERED THUS THE COST IN CONSTANT DOLLARS OF A DIALYSIS TREATMENT HAS FALLEN 61 TO 54 FROM 138 TOTAL PROGRAM COSTS SOARED HOWEVER PRIOR TO 1973 SERVICES WERE RATIONED INFORMALLY PEOPLE CONSIDERED SUITABLE FOR DIALYSIS WERE THOSE UNDER AGE 55 WHO HAD NO OTHER COMPLICATING MEDICAL NEEDS WHEN CONGRESS PROVIDED NEARLY UNIVERSAL ACCESS TO CARE MORE PATIENTS WENT ON DIALYSIS MORE PHYSICIANS BECAME NEPHROLOGISTS AND MORE DIALYSIS CENTERS OPENED BY 1991 THE COUNTRY HAD 2082 DIALYSIS PROVIDERS DO THEY ALL PROVIDE QUALITY CARE NO ONE KNOWS QUALITY IS NOT SYSTEMATICALLY MEASURED OR MONITORED BY THE FEDERAL AGENCIES THAT OVERSEE THE PROGRAM IT'S A LAPSE THAT TROUBLES RICHARD A RETTIG AND NORMAN G LEVINSKY WHO RECENTLY DIRECTED A MASSIVE STUDY OF THE ENDSTAGE RENAL DISEASE PROGRAM FOR CONGRESS NUMEROUS SIGNS SUGGEST THAT QUALITY ERODED AS THE REIMBURSEMENT RATE DROPPED TODAY DIALYSIS PATIENTS ARE OLDER AND SICKER AND PEOPLE OVER AGE 65 FORM THE FASTEST GROWING GROUP OF NEW USERS AMONG THE AGED BENEFICIARIES ARE PEOPLE IN A PERSISTENT VEGETATIVE STATE AND NURSINGHOME RESIDENTS WHO GO TO DIALYSIS CENTERS ON STRETCHERS BRITISH PHYSICIANS AND BUREAUCRATS RIDICULE THE ABSURDITIES THE US POLICY PROMOTES SUCH AS OFFERING DIALYSIS TO SENILE PEOPLE WITH METASTATIC CANCER THOSE THINGS DON'T HAPPEN IN BRITAIN BECAUSE IT RATIONS DIALYSIS INDEED AS CITY UNIVERSITY OF NEW YORK PROF THOMAS HALPER HAS NOTED BRITAIN'S EXPERIENCE SERVES AS A REMINDER THAT COST CONTAINMENT MAY INVOLVE SACRIFICES NOT JUST BY PROSPEROUS DOCTORS PHARMACEUTICAL MAKERS AND SPENDTHRIFT HOSPITALS BUT ALSO BY VULNERABLE PATIENTS IN BRITAIN IT IS RARE FOR ANYONE OVER AGE 55 TO GO ON DIALYSIS LARGELY BECAUSE THE BRITISH HEALTHCARE SYSTEM CONTAINS AN IMPLICIT BIAS AGAINST PROVIDING DIALYSIS FOR ANY KIDNEY PATIENT WITH MULTIPLE SERIOUS DISORDERS WHICH ELDERLY PATIENTS ALMOST ALWAYS HAVE AS A RESULT FOR EVERY MILLION PEOPLE IN BRITAIN 154 ARE ON DIALYSIS IN THE US 539 PEOPLE OUT OF EVERY MILLION ARE ON DIALYSIS THAT CONTRAST UNDERSCORES KEY DIFFERENCES BETWEEN BRITISH AND US HEALTHCARE POLICIES IN BRITAIN THERE IS AN IMPLICIT AGREEMENT BETWEEN THE GOVERNMENT AND TAXPAYERS THAT SOME SERVICES WILL BE RATIONED HOWEVER WHEN BRITISH PHYSICIANS DETERMINE THAT SOMEONE IS NOT SUITABLE FOR DIALYSIS THEY KNOW THAT PERSON'S BASIC NEEDS WILL BE MET AND THAT OTHER PEOPLE WHO NEED HEALTH SERVICES WILL BENEFIT FROM THE DOLLARS SAVED US PHYSICIANS HAVE NO SUCH ASSURANCE IT IS DOUBTFUL WHETHER THE US IS READY TO ADOPT A BRITISHSTYLE SYSTEM OF RATIONED CARE OR WHETHER IT SHOULD WANT TO BUT SOME SORT OF TOUGH CHOICE LIES AHEAD THE IMPETUS BEHIND THE RECENT MASSIVE EFFORT AT HEALTHCARE REFORM IS THE CONVICTION THAT WE ARE SPENDING TOO MUCH MONEY ON HEALTH CARE TO SPEND LESS WILL MEAN TAKING ADVANTAGE OF MARKET EFFICIENCIES OF COURSE BUT ALSO PERHAPS REEXAMINING OUR VALUES IN THE END IT WILL BE LEFT TO POLICY MAKERS TO SOMEHOW DRAW THE LINES THAT GIVE PROVIDERS THE GUIDANCE THEY NEED AND ENSURE JUSTICE FOR PATIENTS AS WELL AS TAXPAYERS MS SHACKELFORD IS AN EDITORIAL WRITER AT THE COURIERJOURNAL IN LOUISVILLE KY 9309210085 930921 LETTERS TO THE EDITOR DON'T RAILROAD THE RAILWAYS YOUR AUG 24 EDITORIAL NO PASSING FANCY APPLAUDING SOUTHERN CALIFORNIA'S PRIVATE TOLL ROAD WAS RIGHT ON TARGET UNTIL THE FINAL PARAGRAPH IN WHICH YOUR GAWDAWFUL ANTIRAIL BROADSIDE ALTERED THE TRAJECTORY OF OTHERWISE FLAWLESS LOGIC WIDESPREAD APPLICATION OF PRIVATE AND TOLLFINANCED ROADWAYS WILL NOT AS THE YOU ALLEGE SHATTER THE SOUND PREMISE FOR STATEOFTHEART RAIL PROJECTS TO THE CONTRARY PRIVATE TOLL ROADS WILL COMPLEMENT THE ECONOMIC MERIT OF EFFICIENT RAIL SERVICES IN ORDER TO SPEEDILY MOVE GOODS SERVICES AND PEOPLE IN THE COMING CENTURY THE GARGANTUAN SCALE OF HIGHWAY SUBSIDIES DIRECT AND HIDDEN MANGLES THE MARKETPLACE FOR EVERYBODY ELSE PRICING HIGHWAY USE AT ITS ACTUAL COST INCLUDING POLLUTION ABATEMENT WOULD CREATE A MARKETORIENTED CLIMATE IN WHICH ALL SORTS OF ENTREPRENEURIAL ENTERPRISES COULD FLOURISH AS THE FEDERAL RAILROAD ADMINISTRATOR FOR THE BUSH ADMINISTRATION I CAME TO APPRECIATE THAT ONLY BUILDING MORE ROADS WHETHER THEY BE PUBLICLY OR PRIVATELY OWNED WAS NOT THE KEY TO UNLOCKING THE GRIDLOCK NATIONWIDE THE SAME IS TRUE FOR AIRPORTS INSTEAD WE NEED A SEAMLESS INTERMODAL TRANSPORTATION SYSTEM THAT COMBINES THE BEST THAT HIGHWAYS AIRPORTS AND RAIL TRANSIT HAVE TO OFFER ONLY BY WISELY USING OUR PRIVATE AND PUBLIC DOLLARS ON AN ENTIRE SYSTEM OF TRANSPORTATION CAN WE ENSURE THAT OUR MARKETDRIVEN ECONOMY FLOURISHES IN THE COMING YEARS 9309210083 930921 BUSINESS BRIEF HELEN OF TROY CORP BEAUTY BIZ ASSETS ARE SOLD TO ALBERTOCULVER SUBSIDIARY HURT BY SLOW RETAIL SALES HELEN OF TROY CORP EL PASO TEXAS SAID IT SOLD THE ASSETS OF ITS BEAUTY BIZ INC RETAIL BEAUTY SUPPLY UNIT TO SALLY BEAUTY CO DENTON TEXAS A UNIT OF ALBERTOCULVER CO A MELROSE PARK ILLBASED MAKER OF PERSONALCARE PRODUCTS TERMS WERE NOT DISCLOSED BUT HELEN OF TROY SAID THE TRANSACTION WILL RESULT IN A CHARGE OF ABOUT SIX CENTS A SHARE FOR ITS SECOND QUARTER ENDED AUG 31 A YEAR EARLIER THE PERSONALCARE PRODUCTS CONCERN REPORTED NET INCOME OF 27 MILLION OR 36 CENTS A SHARE ON SALES OF 363 MILLION GERALD J RUBIN CHAIRMAN AND CHIEF EXECUTIVE SAID THE SALE FREES US TO CONCENTRATE ON THE GROWTH OF OUR CORE BUSINESSES INCLUDING DESIGNING DEVELOPING AND MARKETING PERSONALCARE PRODUCTS IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY HELEN OF TROY'S SHARES WERE QUOTED AT 1425 UP 125 CENTS 9309210082 930921 EXSENS TSONGAS RUDMAN CRAFT PLAN TO CUT DEFICIT STRESSING BENEFIT CURBS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER SENS PAUL TSONGAS AND WARREN RUDMAN UNVEILED A PLAN TO ELIMINATE THE FEDERAL DEFICIT BY 2000 PROVING HOW PAINFUL IT WOULD BE TO ACHIEVE THEIR GOAL THE CENTERPIECE OF THE PLAN ASSEMBLED BY THE CONCORD COALITION AN ANTIDEFICIT GROUP THAT THE TWO MEN FOUNDED LAST YEAR IS A PROPOSAL TO REDUCE SOCIAL SECURITY MEDICARE AND OTHER BENEFITS PAID TO THE 42 OF FAMILIES WITH ANNUAL INCOMES ABOVE 42000 THE PLAN ALSO CALLS FOR SUCH HARSH MEDICINE AS INCREASING THE GASOLINE TAX BY 50 CENTS A GALLON LIMITING THE TAX DEDUCTION FOR MORTGAGE INTEREST TO 20000 A YEAR INCREASING TAXES ON TOBACCO AND ALCOHOL GRADUALLY LIFTING THE SOCIAL SECURITY RETIREMENT AGE TO 68 BY 2006 NOW IT'S 65 AND IS DUE TO RISE TO 67 IN 2017 MAKING MEDICARE BENEFICIARIES PAY MORE FOR HEALTH CARE AND SHAVING FARM SUBSIDY PAYMENTS BY 15 IN CONTRAST TO THE PLAN PROMOTED BY ROSS PEROT THE CONCORD COALITION'S IS SPECIFIC AND IS BASED ON AN UPTODATE BUDGET FORECAST BY THE CONGRESSIONAL BUDGET OFFICE HERE ARE ALL THE ANSWERS THAT ROSS PEROT HAS THE QUESTIONS FOR MR RUDMAN SAID IN CONTRAST TO PRESIDENT CLINTON'S STATED STRATEGY THE CONCORD COALITION DOESN'T COUNT ON ANY SAVINGS TO THE GOVERNMENT FROM RESTRUCTURING THE HEALTHCARE SYSTEM UNTIL AFTER THE YEAR 2000 YOU CAN GET THE DEFICIT TO ZERO BY 2000 WITHOUT THE SAVINGS FROM HEALTHCARE REFORM BUT YOU CAN'T KEEP IT THERE SAID MARTHA PHILLIPS THE COALITION'S EXECUTIVE DIRECTOR ACKNOWLEDGING THAT THE POLITICAL WILL DOESN'T EXIST IN THE WASHINGTON LEADERSHIP FOR THIS PLAN MR TSONGAS SAID THE COALITION IS ARMING SUPPORTERS IN NEW HAMPSHIRE IOWA AND OTHER KEY 1996 PRESIDENTIAL PRIMARY STATES SO THEY CAN SERVE AS A FISCAL TRUTH SQUAD AND COUNTERFORCE TO THOSE WHO RESIST DEFICIT REDUCTION WITHOUT ANY CHANGE IN GOVERNMENT POLICY THE CBO PROJECTS THE FEDERAL DEFICIT WOULD BE 251 BILLION IN 2000 THE WIDELY CIRCULATED DRAFT OF MR CLINTON'S HEALTH PLAN PROJECTS THAT THE PLAN WOULD REDUCE THAT TO ABOUT 200 BILLION ABOUT A QUARTER OF THE REDUCTION THE CONCORD COALITION PROPOSES FOR GETTING THE DEFICIT TO ZERO IN 2000 WOULD COME FROM WHAT MR RUDMAN CALLED THE AFFLUENCE TEST OF GOVERNMENT BENEFITS ANOTHER QUARTER WOULD COME FROM OTHER SPECIFIC PROPOSALS TO RESTRAIN BENEFIT SPENDING YET ANOTHER QUARTER WOULD COME FROM TAX INCREASES AND THE REMAINDER WOULD COME FROM MODEST REDUCTIONS IN DEFENSE AND DOMESTIC SPENDING AS WELL AS LOWER INTEREST PAYMENTS THE PLAN TARGETS A HOST OF DOMESTIC PROGRAMS RANGING FROM THE ELIMINATION OF THE APPALACHIAN REGIONAL COMMISSION TO CANCELING THE SPACE STATION AND THE SUPERCONDUCTING SUPERCOLLIDER IT ALLOWS FOR 10 BILLION A YEAR IN ADDED INVESTMENT SPENDING OR TAX CUTS AIMED AT STIMULATING INVESTMENT MR RUDMAN WAS A REPUBLICAN SENATOR FROM NEW HAMPSHIRE AND MR TSONGAS A DEMOCRAT FROM MASSACHUSETTS 9309210081 930921 LETTERS TO THE EDITOR HOW PHARAOH TAXED HIS WAGE SLAVES RABBI DANIEL LAPIN A HIGHER AUTHORITY ON TAXES EDITORIAL PAGE AUG 31 CUTS SHORT THE TAX LESSONS IN THE STORY OF JOSEPH AND PHARAOH THE LESSONS CONTINUE BEYOND THE SEVEN YEARS OF BUMPER HARVESTS SEVEN YEARS OF FAMINE FOLLOWED THE BUMPER HARVESTS DURING WHICH TIME JOSEPH SOLD THE GRAIN HE ACCUMULATED DURING THE BUMPER YEARS THE EGYPTIANS USED EVERYTHING THEY HAD TO BUY THE GRAIN ULTIMATELY SELLING THEMSELVES INTO PHARAOH'S SLAVERY TO SURVIVE GENESIS 471319 WHAT WERE THE TERMS OF THIS SLAVERY PHARAOH TOOK A CONSTANT 20 OF THE SLAVES' PRODUCTION GENESIS 4726 PHARAOH LIKE JOSEPH DURING THE BUMPER YEARS HAD A FLAT RATE TAX MORE IMPORTANT EVEN PHARAOH'S NEW SLAVES WERE NOT SUBJECT TO THE INCENTIVEDULLING MARGINAL TAX RATES ABOVE 20 THAT MANY AMERICANS HAVE FACED FOR THE PAST 30 YEARS RABBI LAPIN CORRECTLY IDENTIFIES HOW THE CLINTON TAX PLAN ASSAULTS OUR JUDEOCHRISTIAN HERITAGE YET MISSES THE MOST EGREGIOUS ASPECT OF LIBERAL IDEOLOGY THE VIOLATION OF THE 10TH AND FINAL COMMANDMENT THOU SHALT NOT COVET THE ENTIRE LIBERAL ECONOMIC IDEOLOGY RESTS ON THE TRAGIC ASSUMPTION THAT WEALTH IS LIMITED AND THAT ONE MAN CAN PROSPER ONLY BY IMPOVERISHING HIS NEIGHBOR THIS IS OF COURSE NONSENSE AS WEALTH IS INFINITE AND CONSTRAINED ONLY BY MAN'S INGENUITY AND INDUSTRIOUSNESS THE JAPANESE EXAMPLE ILLUSTRATES HOW AN ISLAND NATION BEREFT OF NATURAL RESOURCES CAN CREATE WEALTH THROUGH HARD WORK AND INNOVATION IN THIS HUMANKIND'S BLOODIEST CENTURY PROBABLY NEARLY 100 MILLION PEOPLE HAVE BEEN SACRIFICED ON THE ALTAR OF COMMUNISM/NAZISM/SOCIALISM TO THE MYTHICAL GOD OF LIMITED WEALTH OUR TWO GREATEST PRESIDENTS LINCOLN AND REAGAN BOTH LABORED TO CORRECT THE LIBERAL MISCONCEPTION OF AND ANTAGONISM TOWARD THE NATURE OF WEALTH AND THE LATTER WAS PARAPHRASING THE FORMER WHEN HE SAID THAT MANY PEOPLE CAN'T SEE A FAT MAN STANDING BESIDE A THIN ONE WITHOUT COMING TO THE CONCLUSION THAT THE FAT MAN GOT THAT WAY BY TAKING ADVANTAGE OF THE THIN ONE IT IS FOR GOOD REASON THAT THE 10TH COMMANDMENT IS PLACED IN THE FINAL POSITION BECAUSE THE OTHER COMMANDMENTS ARE PRIMARILY CONCERNED WITH INDIVIDUAL AND LARGELY PRIVATE ACTS BUT JEALOUSY STANDS ALMOST ALONE IN ITS ABILITY TO UNITE LARGE MASSES IN A MANIA THAT DESTROYS NOT ONLY THEIR SOCIETY BUT OFTEN THAT OF THEIR NEIGHBORS FORTUNATELY AMERICA IS LARGELY COMPRISED OF INDIVIDUALS WHO ARE MUCH MORE CONCERNED WITH ENRICHING THEMSELVES THAN COVETING THE WEALTH OF THEIR NEIGHBORS 9309210079 930921 BUSINESS BRIEF MCDERMOTT INTERNATIONAL INC CONCERN TO RECORD EXPENSE AS RESULT OF COURT RULING MCDERMOTT INTERNATIONAL INC SAID IT WILL APPEAL A FEDERAL COURT JUDGMENT IN OHIO THAT DENIES THE COMPANY'S CASE AGAINST ITS INSURERS REGARDING ASBESTOSRELATED CLAIMS AS A RESULT OF THE SUMMARY JUDGMENT RULING MCDERMOTT SAID IT WILL RECORD THIS QUARTER AN ADDITIONAL EXPENSE OF 10 MILLION THAT HAD PREVIOUSLY BEEN RECORDED AS RECEIVABLES FROM THE INSURANCE COMPANY THE CASE WAS FILED BY A MCDERMOTT UNIT BABCOCK & WILCOX CO TO ENFORCE INSURANCE COVERAGE FOR CERTAIN ASBESTOS CLAIMS UNDER A 1979 LIABILITY POLICY THE EXPENSE WILL BE RECORDED IN THE FISCAL SECOND QUARTER ENDING SEPT 30 IN THE YEARAGO SECOND QUARTER THE NEW ORLEANS ENERGY SERVICE CONCERN EARNED 195 MILLION OR 38 CENTS A SHARE ON REVENUE OF 7346 MILLION MCDERMOTT SAID IT COULDN'T IMMEDIATELY SAY IF ADDITIONAL CHARGES OR EXPENSES WILL BE REQUIRED REGARDING ASBESTOSRELATED CLAIMS WITH THIS INSURANCE POLICY 9309210078 930921 KIDDER TO REHIRE EXECUTIVE FOR A TOP POST BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK KIDDER PEABODY GROUP INC IS DIGGING INTO ITS PAST TO BOLSTER MANAGEMENT AND HELP SHORE UP A HOBBLED INVESTMENTBANKING GROUP FOR THE 1990S THE GENERAL ELECTRIC CO UNIT PLANS TO HIRE MICHAEL D MADDEN ITS FORMER BANKING CHIEF AND ITS 1988 MAN OF THE YEAR TO A TOP MANAGEMENT POST PEOPLE FAMILIAR WITH THE FIRM SAID IN HIS NEW POST AS EXECUTIVE MANAGING DIRECTOR MR MADDEN WILL HEAD KIDDER'S GLOBAL BUSINESSDEVELOPMENT GROUP AND HELP SET STRATEGY MR MADDEN WHO WILL REPORT TO KIDDER CHIEF EXECUTIVE OFFICER MICHAEL CARPENTER ALSO WILL HEAD KIDDER'S EMERGINGMARKETS BANKING GROUP DEVELOP NEW BUSINESS FOR ITS INVESTMENTBANKING UNIT AND HANDLE THE FIRM'S TIES WITH GE THE PEOPLE SAID THE APPOINTMENT WHICH COULD BE ANNOUNCED AS EARLY AS TODAY IS A COUP FOR KIDDER SINCE QUITTING AS COCHIEF OF INVESTMENT BANKING AT LEHMAN BROTHERS INC IN MARCH THE 44YEAROLD MR MADDEN HAS BEEN COURTED FOR SENIORLEVEL POSTS BY WASSERSTEIN PERELLA & CO AND PAINEWEBBER GROUP INC AMONG OTHERS WALL STREET EXECUTIVES SAID AT KIDDER MR MADDEN IS EXPECTED TO RECEIVE ANNUAL PAY OF ABOUT 2 MILLION IN LINE WITH HIS LEHMAN PAY THE PEOPLE SAID KIDDER OFFICIALS DECLINED TO COMMENT LATE YESTERDAY MR MADDEN COULDN'T BE REACHED THE APPOINTMENT COMES AT A CRITICAL TIME FOR 128YEAROLD KIDDER PROFITS AT THE FIRM HAVE REBOUNDED AMID WALL STREET'S BOOM IT HAD RECORD 1992 PRETAX OPERATING PROFIT OF 300 MILLION BUT KIDDER'S BIG CHALLENGE IS TO BUILD ITS INVESTMENTBANKING CLOUT TO BALANCE ITS MORTGAGEBACKED TRADING PROWESS ANALYSTS SAY KIDDER'S INVESTMENTBANKING GROUP HAS HAD LOSSES IN EACH OF THE PAST SEVERAL YEARS THIS YEAR THE BANKING GROUP IS EXPECTED TO EARN ABOUT 50 MILLION BEFORE TAXES AND BONUSES THE PEOPLE FAMILIAR WITH KIDDER SAID STILL KIDDER'S SHARE OF NEW STOCK UNDERWRITINGS ONE OF WALL STREET'S BIG MONEYMAKERS IS JUST 24 SO FAR THIS YEAR ACCORDING TO SECURITIES DATA CO FOR AN 11THPLACE RANKING BY CONTRAST KIDDER'S MORTGAGEBACKED TRADING UNIT IS EXPECTED TO EARN MORE THAN 400 MILLION BEFORE TAXES AND BONUSES THIS YEAR THE PEOPLE SAID THE FIRM'S SHARE OF NEW MORTGAGEBACKED SECURITIES IS 199 SECURITIES DATA SAYS BY FAR THE BEST ON WALL STREET WITH THE NAMING OF MR MADDEN KIDDER HOPES TO REVITALIZE ITS INVESTMENTBANKING DEPARTMENT WHICH HAS BEEN ROCKED BY DEFECTIONS OF SENIOR BANKERS THE PAST FEW YEARS IN MARCH KIDDER NAMED DAVID MCAULIFFE AND EDWARD MIDGLEY AS JOINT HEADS OF THE BANKING GROUP AFTER FORCING OUT SCOTT NEWQUIST AFTER AN UNSUCCESSFUL THREEYEAR STINT RUNNING THE BANKING GROUP MESSRS MCAULIFFE AND MIDGLEY WHO HAVE STABILIZED THE GROUP WILL CONTINUE TO HEAD BANKING MR MADDEN WILL PROVIDE NEWBUSINESS ADVICE AND LEAD RECRUITING FOR THE 260MEMBER BANKING UNIT THE APPOINTMENT IS A HOMECOMING OF SORTS FOR MR MADDEN IN 1989 MR MADDEN THEN THE HIGHESTRANKING LONGTIME KIDDER EXECUTIVE AT THE FIRM QUIT AMID SCORES OF DEFECTIONS AND TURMOIL AT THE FIRM HIS DEPARTURE CAME LESS THAN TWO WEEKS AFTER GE ASSERTED FULL CONTROL OVER ITS 80OWNED UNIT AND PUT MR CARPENTER IN CHARGE ONE OF THE MOST IMPORTANT ASPECTS OF MR MADDEN'S NEW POST IS HANDLING KIDDER'S RELATIONSHIP WITH GE WHICH PAID 602 MILLION FOR THE INVESTMENT BANK IN 1986 KIDDER HAS NEVER FULLY TAKEN ADVANTAGE OF ITS BUSINESS TIES TO GE MR MADDEN IS EXPECTED TO WORK WITH SENIOR GE EXECUTIVES TO DEVELOP JOINT BUSINESS STRATEGIES FINANCING IDEAS AND MERGERSANDACQUISITION IDEAS THE PEOPLE SAID MR MADDEN AN ENERGY SPECIALIST HAD DEVELOPED MUCH OF LEHMAN'S BUSINESS WITH MAJOR CLIENTS IN THE ENERGY AREA INCLUDING ATLANTIC RICHFIELD CO FREEPORTMCMORAN INC ENRON CORP AND SHELL OIL CO HE'S A GOOD THINKER AND A GOOD PEOPLEPERSON A REAL ASSET SAID RICH KINDER ENRON'S PRESIDENT AND CHIEF OPERATING OFFICER 9309210077 930921 TECHNOLOGY BRIEF PFIZER INC NEW YORK BOTANICAL GARDEN TO JOIN MEDICINE RESEARCH PFIZER INC AND THE NEW YORK BOTANICAL GARDEN SIGNED A 2 MILLION RESEARCH COLLABORATION TO COLLECT AND STUDY PLANTS IN THE US AS A SOURCE FOR NEW MEDICINE UNDER THE THREEYEAR AGREEMENT THE BOTANICAL GARDEN WILL COLLECT AND IDENTIFY PLANTS AND PFIZER SCIENTISTS WILL TEST THE PLANTS' EXTRACTS IF A PLANT RESULTS IN A COMPOUND THAT IS COMMERCIALIZED AS MEDICINE THE NEW YORK COMPANY WHICH HAS BUSINESSES IN HEALTH CARE CONSUMER PRODUCTS AND SPECIALTY CHEMICALS WOULD PAY A ROYALTY TO THE BOTANICAL GARDEN THE BOTANICAL GARDEN HAS HAD SIMILAR ARRANGEMENTS WITH OTHER MAJOR PHARMACEUTICAL COMPANIES PLANTS HAVE BEEN A SOURCE FOR DISEASEFIGHTING MEDICINES FOR CENTURIES A QUARTER OF ALL US PRESCRIPTION DRUGS TODAY ORIGINATED IN PLANTS BUT SCREENING PLANT EXTRACTS HAS BEEN A TEDIOUS AND DIFFICULT PROCESS PFIZER SAID SCIENTISTS NOW CAN MORE EFFECTIVELY EXPLORE THE PLANT WORLD FOR MEDICINE WITH THE HELP OF EMERGING TECHNOLOGIES AND ADVANCES IN SCIENTIFIC KNOWLEDGE 9309210076 930901 A STUDY THAT DESERVES NO CREDIT BY STAN LIEBOWITZ THE BANKING INDUSTRY STANDS ACCUSED AND CONVICTED BY THE MEDIA AND OTHERS OF ENGAGING IN LENDING PRACTICES THAT DISCRIMINATE AGAINST MINORITIES WHEN THE NEW YORK TIMES REPORTED THIS WEEK THAT SHAMED AND EMBARRASSED LENDERS WERE FINALLY OPENING THEIR DOORS TO MINORITY GROUPS IT QUOTED ONE ADVOCACY LAWYER AS SAYING IT'S A LITTLE HARD TO CHEER TOO LOUDLY WE ARE STILL IN THE EARLY STAGES OF OVERCOMING DECADES OF PREJUDICE AND NEGLECT UPON WHAT EVIDENCE ARE THESE STATEMENTS SO CONFIDENTLY ASSERTED THERE IS ONLY ONE STUDY OF MORTGAGE DECISIONS THAT TAKES INTO ACCOUNT THE ECONOMIC CHARACTERISTICS OF MORTGAGE APPLICANTS MAKING IT THE ONLY SERIOUS EXAMINATION OF THIS ISSUE THAT STUDY PUBLISHED BY THE FEDERAL RESERVE BANK OF BOSTON LAST FALL EXAMINED APPROXIMATELY 3000 MORTGAGES MADE IN THE BOSTON AREA IN 1990 ALTHOUGH IT FOUND THAT FINANCIAL ATTRIBUTES PLAYED THE LEADING ROLE IN MORTGAGE ACCEPTANCE OR REJECTION AND ALTHOUGH IT SHOWED THAT MINORITIES HAD FINANCIAL ATTRIBUTES MORE LIKELY TO CAUSE REJECTION THAN DID WHITES ITS BOTTOMLINE CONCLUSION WAS THAT MINORITIES WERE DISCRIMINATED AGAINST THE STUDY HAS BEEN DESCRIBED BY REGULATORS AS DEFINITIVE AND ITS CONCLUSIONS HAVE BECOME PART OF THE MEDIA'S CONVENTIONAL WISDOM BUT HOW RELIABLE IS THE BOSTON STUDY AFTER SOME PRODDING THE BOSTON FED HAS FINALLY RELEASED ITS DATA A CAREFUL ANALYSIS REVEALS ALAS THAT THE STUDY IS SERIOUSLY FLAWED MOST IMPORTANT IT SUGGESTS THAT THE STUDY'S CONCLUSION CONCERNING RACIAL DISCRIMINATION IN MORTGAGE LENDING SHOULD BE DISREGARDED THE AUTHORS OF THE FED STUDY CLAIM THAT THEY SCRUPULOUSLY WEEDED OUT ERRORS BY EXAMINING THE DATA FOR INCONSISTENCIES BUT A COLLEAGUE AND I PERFORMED SEVERAL CHECKS ON THE RAW NUMBERS AND WERE ASTONISHED TO DISCOVER LITERALLY HUNDREDS OF ERRORS OR LIKELY ERRORS THE FIRST ITEM TO CATCH OUR ATTENTION WAS NET WORTH THERE ARE 20 MORTGAGE APPLICANTS HAVING A NET WORTH IN THE RANGE OF A NEGATIVE HALF MILLION DOLLARS MEANING THEY ALREADY OWED THAT AMOUNT THERE ARE 27 MORTGAGE APPLICANTS WHO EVEN IF THEY DEVOTED 50 OF THEIR INCOMES TO PAYING OFF THEIR DEBTS WOULD NEED MORE THAN 10 YEARS TO GET OUT OF THE RED YET THE BOSTON FED DATA TELL US THAT THREE QUARTERS OF THESE APPLICATIONS WERE APPROVED FOR MORTGAGES IN ONE CASE AN APPLICANT HAVING A NET WORTH OF MINUS 7919999 AND A YEARLY INCOME OF 30000 HAD A LOAN APPLICATION APPROVED CONSIDERING THAT IT WOULD TAKE THIS INDIVIDUAL MORE THAN 200 YEARS TO PAY OFF HIS DEBTS EVEN IF ALL HIS INCOME WERE USED FOR THIS PURPOSE IT SEEMS MOST UNLIKELY THAT ANY SANE BANKER WOULD HAVE APPROVED THIS MORTGAGE IT IS FAR MORE LIKELY THAT THE NUMBERS ARE WRONG A SIMILAR RESULT HOLDS FOR INTEREST RATES ON THESE LOANS WE FOUND 89 MORTGAGES WHERE INTEREST RATES WERE LESS THAN 6 A RATE WELL BELOW THE MARKET RATES AT THE TIME INCLUDING SEVEN WITH NEGATIVE INTEREST RATES A NEGATIVE INTEREST RATE MEANS THAT THE BANK PAYS YOU FOR THE PRIVILEGE OF LENDING YOU MONEY BUT DON'T BOTHER PLANNING A TRIP TO BOSTON TO GET ONE OF THESE LOANS SINCE THE NUMBERS ARE NOT TO BE BELIEVED EQUALLY TROUBLING ARE THE REPORTED LOAN AMOUNTS RELATIVE TO THE VALUES OF THE HOMES FOR WHICH THE LOAN IS INTENDED ANYONE WHO HAS TRIED TO GET A MORTGAGE IN THE PAST FEW YEARS IS LIKELY TO BE AWARE THAT IF YOUR DOWNPAYMENT IS LESS THAN 20 OF THE HOUSE VALUE YOU WILL BE TOLD BY THE BANK THAT YOU NEED TO GET PRIVATE MORTGAGE INSURANCE THIS IS COMMON THROUGHOUT THE INDUSTRY AND A STRICT REQUIREMENT IF A BANK WISHES TO SELL A MORTGAGE AS IS MOST COMMONLY DONE IMAGINE OUR SURPRISE WHEN WE FOUND MORE THAN 500 MORTGAGE APPLICANTS WHO HAD FAILED TO APPLY FOR MORTGAGE INSURANCE EVEN THOUGH THEIR DOWNPAYMENTS WERE LESS THAN THE REQUIRED 20 EVEN MORE SURPRISING MOST OF THESE LOANS WERE APPROVED AND WELL OVER 100 WERE SOLD UNLESS BOSTON IS NOT INCLUDED IN THE US BANKING SYSTEM THESE NUMBERS MUST BE IN ERROR THESE WERE NOT THE ONLY INCONSISTENCIES WE FOUND BUT THEY ARE REPRESENTATIVE UNFORTUNATELY THERE ARE NO SIMPLE CHECKS ON THE ACCURACY OF ALL THE RAW DATA USED IN THE BOSTON FED STUDY THUS WE CANNOT BE CERTAIN OF HOW SERIOUSLY THESE FLAWED NUMBERS AFFECTED THE STUDY'S CONCLUSIONS AT THE VERY LEAST RESEARCHERS PAID TOO LITTLE ATTENTION TO THE REPORTING COLLECTING AND TRANSCRIBING OF DATA A SECOND PROBLEM WITH THE BOSTON FED STUDY IS ITS MIXING OF LOAN APPLICATIONS FOR DIFFERENT PROPERTY TYPES AND DIFFERENT REPAYMENT PERIODS LENDERS ARE VERY LIKELY TO APPLY DIFFERENT LENDING CRITERIA TO DIFFERENT TYPES OF PROPERTIES A LOAN FOR A MULTIFAMILY HOME FOR EXAMPLE IS MORE RISKY THAN A LOAN FOR A SINGLEFAMILY HOME SINCE THE MULTIUNIT HOMEOWNER HAS THE ADDITIONAL BURDEN OF DEALING WITH TENANTS WHEN MORTGAGES IN THE FED STUDY ARE GROUPED ACCORDING TO THE TYPE OF PROPERTY BEING PURCHASED THE RESULTS RUN COUNTER TO THE STUDY'S CONCLUSION FOR CONDOMINIUMS WHICH CONSTITUTE ABOUT A FOURTH OF ALL APPLICATIONS IN THE SAMPLE THERE IS NO RELATIONSHIP BETWEEN RACE AND MORTGAGE ACCEPTANCE FOR MULTIUNIT HOMES WHICH MAKE UP APPROXIMATELY A SEVENTH OF THE APPLICATIONS THERE IS ONLY WEAK EVIDENCE OF DISCRIMINATION AND MOST OF IT IS DUE TO A SINGLE LOAN APPLICATION THAT CLEARLY HAS ERRORS A WHITE INDIVIDUAL WITH A YEARLY INCOME OF 52000 BORROWING 979000 TO PURCHASE A HOUSE WITH A PRICE OF 118000 THE PAYMENTS ON THE LOAN TOTAL ONLY 633 A MONTH MAKING THIS ONE OF THE LOANS WITH A NEGATIVE INTEREST RATE THE LOAN WAS APPROVED CAUSING THE FED RESEARCHERS TO CONCLUDE THAT THIS WAS AN INSTANCE OF WHITES RECEIVING FAVORED TREATMENT IT IS FAR MORE LIKELY THAT THE TRUE LOAN AMOUNT WAS ONLY 79000 OR SOME AMOUNT IN THAT RANGE AND THAT RACE WAS IRRELEVANT WE FOUND NO EVIDENCE OF DISCRIMINATION FOR THE GROUP OF SINGLEFAMILYHOME APPLICANTS WHO HAD APPLIED FOR MORTGAGE INSURANCE THE FINAL GROUP THAT WE EXAMINED CONSISTS OF 1023 APPLICANTS ATTEMPTING TO PURCHASE SINGLEFAMILY HOMES AND HAVING A DOWNPAYMENT SUFFICIENTLY LARGE THAT MORTGAGE INSURANCE WAS NOT NEEDED FOR THIS GROUP RACIAL DISCRIMINATION MEASURED WITH THE SAME TECHNIQUES USED BY THE FED RESEARCHERS IS APPARENTLY MUCH LARGER THAN THAT FOUND FOR THE ENTIRE SAMPLE GIVEN THE LACK OF DISCRIMINATION IN THE OTHER GROUPS IT IS FAIRLY CLEAR THAT THIS GROUP IS THE CORE FROM WHICH THE CHARGE OF RACIAL DISCRIMINATION COMES BUT EVEN HERE THE STUDY'S CONCLUSIONS EVAPORATE WHEN THERE ARE ERRORS IN DATA COLLECTION OF WHICH WE HAVE SEEN MANY IT IS TO BE EXPECTED THAT THERE ARE GOING TO BE SOME UNUSUAL OBSERVATIONS THAT INFLUENCE DISPROPORTIONATELY THAT IS DISTORT THE RESULTS AND THAT IS WHAT WE FOUND IN THIS CASE SIX EXTREMELY INFLUENTIAL LOAN APPLICATIONS WHEN THESE ARE REMOVED FROM THE SAMPLE ANY EVIDENCE OF DISCRIMINATION VANISHES ENTIRELY THE FIRST CASE WE EXAMINED THE MOST INFLUENTIAL IS THAT OF A HISPANIC COUPLE THAT WAS TURNED DOWN WHEN IT APPLIED FOR A LOAN OF 87000 TO PURCHASE A HOME WITH A PRICE OF 217000 THE CREDIT HISTORY FOR THE COUPLE WAS RANKED AS GOOD ALTHOUGH THIS RANKING APPEARS INCONSISTENT WITH SOME VERY SERIOUS DELINQUENCIES IN THEIR CONSUMER PAYMENT HISTORY A TRANSCRIPTION ERROR ALTHOUGH THE COUPLE REPORT A JOINT MONTHLY INCOME OF 5080 THEIR REPORTED YEARLY INCOME IS ONLY 26000 MATH WHIZZES TAKE NOTE IF THIS APPLICATION HAD BEEN APPROVED THE COUPLE WOULD HAVE BEEN REQUIRED TO MAKE A DOWNPAYMENT OF 130000 YET THE DATA INDICATE THAT THE COUPLE HAD ONLY 1000 IN LIQUID ASSETS AND A NET WORTH OF ONLY 10000 CLEARLY SOMETHING OTHER THAN RACIAL DISCRIMINATION ACCOUNTS FOR THE FATE OF THIS LOAN THE NEXT MOST INFLUENTIAL CASE CONSISTS OF TWO MARRIED HISPANIC MEN APPLYING JOINTLY FOR A MORTGAGE ON A SINGLEFAMILY HOME AN ODD LOAN THOUGH NOT IMPOSSIBLE THEY NEEDED A DOWNPAYMENT OF 47000 BUT HAD LIQUID ASSETS OF ONLY 5000 AND A NET WORTH OF ONLY 27000 THEY HAD JOINT YEARLY INCOME OF EITHER 65000 OR 36000 DEPENDING ON WHETHER YOU BELIEVE YEARLY OR MONTHLY INCOME FIGURES DENIAL OF THESE APPLICATIONS SEEMS EMINENTLY REASONABLE AND PRUDENT GIVEN THE REPORTED FACTS HOW COULD THE DOWNPAYMENTS HAVE EVEN BEEN MADE OF COURSE THE REPORTED FACTS ARE THEMSELVES QUESTIONABLE YET THE BOSTON FED RESEARCHERS CONCLUDED THAT RACISM WAS RESPONSIBLE FOR THESE LOANS BEING DENIED THE PATTERN FOR THE OTHER FOUR LOANS IN THE INFLUENTIAL GROUP OF SIX CONTINUES ALONG THESE LINES IT DOES NOT SUPPORT THE THESIS THAT RACIAL DISCRIMINATION WAS A MAJOR FACTOR IN THESE DECISIONS AND IF THESE SIX LOANS ARE NOT RACIALLY DETERMINED THERE IS NO EVIDENCE THAT ANY WERE WHAT MAY WE CONCLUDE FROM THIS ANALYSIS CLEARLY THE BOSTON STUDY IS UNRELIABLE AND MISLEADING CLEARLY IT DID NOT MERIT THE ATTENTION IT RECEIVED JUST AS CLEARLY IT WAS SEIZED UPON TOO QUICKLY PERHAPS TO FURTHER THE POLITICAL PURPOSES OR CONFIRM THE POLITICAL PREJUDICES OF PEOPLE EAGER TO SHOW THAT AMERICA REMAINS AN OPPRESSIVE RACIST SOCIETY IN ANY CASE OUR COUNTRY IS NOT WELL SERVED BY A POLICY THAT CREATES YET ANOTHER SET OF VICTIMS FALSELY ACCUSED OF RACIALLY DISCRIMINATING AGAINST THEIR COUNTRYMEN BEFORE ANY STUDY IS CONSIDERED DEFINITIVE IT SHOULD BE CHECKED FAR MORE CAREFULLY THAN THIS STUDY WAS CHECKED UNLESS OF COURSE TRUTH IS NOT THE GOAL MR LIEBOWITZ IS AN ECONOMIST IN THE MANAGEMENT SCHOOL AT THE UNIVERSITY OF TEXAS AT DALLAS TED DAY A FINANCE PROFESSOR AT THE MANAGEMENT SCHOOL COLLABORATED ON THE WRITING OF THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR BOSTON FED STUDY SHOWS RACE BIAS WSJ SEPT 21 1993 9309010047 YY93 MM09 9309210075 930921 PEPPERAND SALT ARE ALWAYS SO LEAN AND LANKY AND THAT'S WHY THEY LOOK SO CRANKY TO COMPLETE THEIR CONFIRMATIONS ON MY NEW WORD PROCESSOR 9309210074 930921 TECHNOLOGY SUN MICROSYSTEMS MACHINES TO JOIN AMDAHL CORP LINE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC GAINING A BIG ALLY IN ITS EFFORT TO WIN A BROADER FOLLOWING FOR ITS COMPUTERS AND SOFTWARE SAID AMDAHL CORP HAS AGREED TO ADD SUNMADE MACHINES TO ITS PRODUCT LINEUP AND TO DEVELOP SOFTWARE WITH SUN UNDER THE AGREEMENT AMDAHL WILL SELL SUN'S SPARCCENTER 2000 AND SPARCSERVER 1000 LINES OF SERVERS POWERFUL COMPUTERS THAT CORPORATIONS OFTEN USE TO STORE LARGE BANKS OF DATA AND TO TIE GROUPS OF SMALLER DESKTOP COMPUTERS INTO NETWORKS AMDAHL AND SUN'S SUNSOFT INC UNIT WILL ALSO JOINTLY DEVELOP ENHANCEMENTS TO SUN'S OPERATING SYSTEM THE COMPANIES SAID FOR SUN AMDAHL PROVIDES ACCESS TO A NEW CUSTOMER BASE AMONG THE BIG CORPORATIONS THAT BUY AMDAHL'S MULTIMILLIONDOLLAR MAINFRAME MACHINES SUN MOUNTAIN VIEW CALIF IS THE MARKETSHARE LEADER AMONG MAKERS OF DESKTOP MACHINES CALLED WORKSTATIONS THAT ARE USED BY ENGINEERS AND SOME BUSINESSES BUT SUN LIKE ITS RIVALS WANTS USERS TO EMPLOY ITS MACHINES IN MORE HEAVYDUTY COMPUTING TASKS TRADITIONALLY DONE BY MAINFRAMES AMDAHL SUNNYVALE CALIF WILL SELL THE SUN MACHINES WHICH CAN BE STRUNG TOGETHER TO FORM POWERFUL MULTIPROCESSING CONFIGURATIONS IN SETUPS COSTING AS MUCH AS 17 MILLION SUN'S SALES FORCE ISN'T NECESSARILY GEARED TO THIS PRICE POINT BUT IT'S A TINY MACHINE FOR AMDAHL SAID SCOTT MCNEALY SUN'S CHIEF EXECUTIVE OFFICER WE JUST DON'T HAVE THE COVERAGE WE'D LIKE WITH OUR SALES FORCE FOR AMDAHL THE AGREEMENT FILLS WHAT WAS A VAST HOLE IN ITS PRODUCT LINE WHICH UNTIL NOW HAS CONSISTED ALMOST ENTIRELY OF MAINFRAMES MACHINES FOR WHICH MARKET GROWTH HAS SLOWED CONSIDERABLY IN RECENT YEARS AS PART OF THE AGREEMENT AMDAHL AND SUN WILL ADAPT SOFTWARE TECHNOLOGIES WHICH AMDAHL HONED FOR MAINFRAMES TO SUN'S OPERATING SYSTEM SUN'S SOFTWARE UNIT SUNSOFT WILL BE ALLOWED TO RESELL THOSE ENHANCEMENTS FOR MACHINES OTHER THAN AMDAHL'S SUCH AS THOSE USING MICROPROCESSORS MADE BY INTEL CORP OF SANTA CLARA CALIF AMDAHL WILL BECOME SOMETHING OF A SATELLITE ENGINEERING OPERATIONS OF SUNSOFT SAID MR MCNEALY SEPARATELY SUN YESTERDAY UNVEILED A NEW VERSION OF ITS OPERATINGSYSTEM SOFTWARE SOLARIS 23 WHICH MR MCNEALY SAID WILL PERFORM CERTAIN COMPUTING TASKS 150 FASTER THAN ITS PREVIOUS VERSION 9309210073 930921 BUSINESS BRIEF CALGON CARBON CORP COMPANY EXPECTS SHORTFALL IN CARBON SHIPMENTS TO UK CALGON CARBON CORP SAID IT EXPECTS A SHORTFALL IN CARBON SHIPMENTS TO WATER COMPANIES IN THE UNITED KINGDOM DURING THE THIRD QUARTER THE PITTSBURGH COMPANY PRODUCES ACTIVATED CARBON PRODUCTS FOR THE PURIFICATION OF GASES AND LIQUIDS CHAIRMAN THOMAS A MCCONOMY DECLINED TO SAY HOW THE SHORTFALL WILL AFFECT RESULTS FOR THE PERIOD IN THE YEARAGO PERIOD THE COMPANY EARNED 79 MILLION OR 19 CENTS A SHARE REFLECTING ACCOUNTING CHANGES ON SALES OF 777 MILLION A SPOKESWOMAN SAID CALGON INITIALLY HAD ORDERS TO SHIP ABOUT FIVE MILLION POUNDS OF CARBON IN THE THIRD QUARTER TO WATER COMPANIES IN THE UK HOWEVER SHE SAID SOME OF THE COMPANIES CHANGED THE TIMING OF THEIR ORDERS INSTEAD CALGON IS SHIPPING 25 MILLION TO THREE MILLION POUNDS IN THE THIRD QUARTER AND WILL SHIP THE REST IN THE FOURTH THE SPOKESWOMAN SAID ADDING THAT DELAYS OF THIS NATURE ARE NOT UNCOMMON IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CALGON CLOSED AT 11375 DOWN 25 CENTS 9309210072 930921 BUSINESS WORLD DRUG EXECUTIVE'S POLITICAL FLAIR FOR MANAGED CARE BY TIM W FERGUSON AS THEIR CHIEF TORMENTOR DELIVERS HIS ROOSEVELTIAN HEALTHCARE MESSAGE TOMORROW THE NATION'S DRUGMAKERS ARE TIRING OF BEING A POLITICAL PUNCHING BAG BELATEDLY AS THE LEGISLATING OF PRESIDENT CLINTON'S MEDICAL SCHEME IS TO BEGIN SOME PHARMACEUTICAL EXECUTIVES ARE HITTING BACK FEW IN THE INDUSTRY OUGHT TO BE BETTER AT THAT THAN MITCHELL DANIELS THE PRESIDENT OF ELI LILLY & CO'S NORTH AMERICAN DRUG UNIT HE WAS A TOP POLITICAL ADVISER TO PRESIDENT REAGAN FROM 198587 AND BEFORE THAT TO SEN RICHARD LUGAR OF INDIANA AND HIS REPUBLICAN COLLEAGUES HE HONED HIS CONSERVATISM AS HEAD OF THE HUDSON INSTITUTE IN THE LATE 1980S BEFORE MOVING DOWN THE ROAD IN INDIANAPOLIS TO A CORPORATEAFFAIRS POST AT LILLY IN 1990 THE UNUSUAL LEAP TO RUNNING ONE OF THE COMPANY'S MAJOR OPERATIONS CAME EARLIER THIS YEAR AND MR DANIELS HAS SURVIVED THE OUSTER OF THE MAN WHO PUT HIM THERE CEO VAUGHN BRYSON MR DANIELS SPENT A DECADE IN WASHINGTON WHERE BUSINESS USUALLY SOFTPEDALS PRINCIPLE AND SPLITS DIFFERENCES HIS RHETORIC IS HARDEREDGED THAN THAT AS COMPANY SPOKESMAN HE TOOK TO THE OPED PAGES LAST SPRING WITH AN ATTACK ON THE POLITICAL CRUSADE AGAINST THIS INDUSTRY WHEN WE SPOKE ON FRIDAY HE HADN'T LET UP IT'S BEEN PRETTY MUCH DEMONSTRATED THAT INDUSTRIAL POLICY BY GOVERNMENTS IS A NONSTARTER HE SAID THE CONVERSE OF THAT MAY NOT BE TRUE THAT IS ANTIINDUSTRIAL POLICY MAY BE ACHIEVABLE GOVERNMENT MAY BE ABLE TO PICK OUT AN INDUSTRY AND DESTROY IT EVEN IF IT WAS STRONG TO BEGIN WITH HE REFERRED TO THE ONETHIRD DROP IN MARKET VALUE OF US PHARMACEUTICAL MAKERS THAT ACCOMPANIED THE CLINTON ERA THOSE STOCKS ARE OFF THEIR LOWS AND HELD UP LAST WEEK DESPITE WORD OF MORE STRINGENT PRICE CONTROLS IN THE PRESIDENT'S PACKAGE BUT MR DANIELS MAINTAINED INVESTORS ALREADY HAD DISCOUNTED THE NEWS THOSE CONTROLS IN THE FORM OF 15 DISCOUNTS TO MEDICARE FOR NAMEBRAND DRUGS PLUS FURTHER JAWBONING BY THE SECRETARY OF HEALTH AND HUMAN SERVICES COME ON TOP OF A SIMILAR MEDICAID REBATE THAT MR DANIELS SAID HAS PROVED AN UNUSUALLY EFFECTIVE TAX IT'S RAISED TWICE AS MUCH AS IT WAS SUPPOSED TO INSTEAD OF LESS SEVERAL BILLIONS OF DOLLARS OUT OF THE INDUSTRY THEN THERE ARE THE HUNDREDS OF MILLIONS OF DOLLARS IN USER FEES TO BE PAID TO THE FDA FOR WORK THE GOVNT IS SUPPOSED TO BE DOING ANYWAY SPEEDIER APPROVAL OF NEW DRUGS PLUS CURBS ON THE TAX BREAK FOR MANUFACTURING IN PUERTO RICO ADD IT UP AND ITS A BIG SUBTRACTION FROM PROFITS AND MR DANIELS CONTENDED FROM R&D IF YOU REALLY WANT TO GUARANTEE A HEALTH COST DISASTER FOR THIS COUNTRY START TO SHUT DOWN THESE RESEARCH PROGRAMS AS OUR SOCIETY GETS OLDER HE SAID THERE'S NO SECRETARY OF HHS AND NO NATIONAL HEALTH BOARD THAT ARE GOING TO BE ABLE TO HEAD OFF THE COSTS ASSOCIATED WITH SUFFERING FROM DISEASES OF THE AGED THAT GO WITHOUT A CURE THE ELDERLY SCREAM THE LOUDEST ABOUT DRUG PRICES NOW AS THEY MUST PAY THEM OUT OF THEIR OWN POCKETS IN FACT MR DANIELS SAID PILLS MIGHT BE THE CHEAPEST FORM OF THERAPY BUT MEDICARE HAS INSULATED PEOPLE FROM OTHER TRUE COSTS TO WHERE THEY ARE INDIFFERENT TO RUNNING UP MILLIONS OF DOLLARS IN HOSPITAL STAYS TESTS AND DOCTOR'S BILLS MORE SO THAN THE CLINTON PROGRAM HE STRESSED GETTING FEDERALLY SUBSIDIZED PATIENTS INTO PRIVATE MANAGEDCARE NETWORKS THAT HAVE AN INCENTIVE TO BALANCE TREATMENT OPTIONS MR DANIELS KEPT SALUTING HMOTYPE OPERATIONS A STANCE YOU WOULDN'T HAVE EXPECTED FROM A DRUGMAKER PRIOR TO THE GREATER CLINTON TERROR AFTER ALL THESE PRICE HAWKS HAVE STEERED DOCTORS AND PATIENTS AWAY FROM PREMIUM PHARMACEUTICALS BUT HE'LL TAKE COST CONTAINMENT FROM MANAGED CARE OVER THAT OF THE BILLARY PLAN ONE IS COMPETITION AND THE OTHER IS CONFISCATION HE SAID ALTHOUGH PRIVATE PREPAYED PLANS CAN BE SHORTSIGHTED IN THEIR STINGINESS I THINK THE INDUSTRY NOW UNDERSTANDS THEY'RE PLAYING A VALUABLE SOCIETAL ROLE FUTURE NEGOTIATIONS WITH THEM LEAVE THE DRUG INDUSTRY ROOM TO DELIVER VALUE THAT MIGHT JUSTIFY A HIGHER PRICE IT IS THE PRIMITIVE MANAGED CARE NOW AT WORK THAT HAS SENT PRICES INTO A FREE FALL HE SAID AND NOT LARGELY THE HEAVY HAND OF BILL CLINTON'S ARKANSAS BUDDY SEN DAVID PRYOR WHO HARANGUES THE INDUSTRY FROM A COMMITTEE PERCH CONSOLIDATION OF BUYING POWER WOULD HAVE ACHIEVED A LOT OF THIS EVEN IF MODERN MEDICINE HADN'T SAVEDLET'S PUT IT THIS WAY EVEN IF SEN PRYOR HAD CHOSEN A DIFFERENT CAUSE SAID MR DANIELS THE SENATOR SURVIVED A HEART ATTACK IN 1991 IN FACT FEDERAL POLICY HAS GOTTEN IN THE WAY THE LILLY EXECUTIVE SUGGESTED THE RECENTLY IMPOSED MEDICAID REBATE FORMULA ACTUALLY HAS SERVED AS A BRAKE ON DISCOUNTING BECAUSE THE DEEPER YOU DISCOUNT TO ANY ONE CUSTOMER THE BIGGER THE CHECK YOU HAVE TO SEND TO MEDICAID DESPITE THE BUDDING ROMANCE WITH MANAGED CARE MR DANIELS DOESN'T SEE A SOLID ALLY IN THE POLITICAL BATTLE AHEAD I DON'T THINK ANYBODY WANTS TO BE ALLIED WITH THE PHARMACEUTICAL INDUSTRY AS BEATEN UP AS WE ARE HE JOKED MORE SOMBERLY HE CONCEDED THAT DRUGMAKERS COULDN'T HOPE TO BE SAVED BY A REVERSAL OF PUBLIC ATTITUDES GIVEN ALL THE CASTIGATIONS AND THE PERCEPTION THAT PILL PRICES ARE OUTRAGEOUS COMPARED TO LOW OUTOFPOCKET COSTS FOR THINGS A THIRD PARTY COVERS BUT HE DOES THINK LAWMAKERS CAN BE INFLUENCED BY LOBBIES FOR ALZHEIMER'S AIDS AND CANCER PATIENTS AND BY THE SHEER PHENOMENON OF COST STABILIZATION BY NINE MONTHS FROM NOW SEN PRYOR WILL SEEM LIKE SOME CIVIL WAR VETERAN WAVING THE BLOODY SHIRT IN 1890 IT'S ALL OVER THE MENACE HE'S BEEN WORRIED ABOUT THANKS GREATLY TO THE LAXITY OF THIRDPARTY PAYERS DRUG COMPANIES ENJOYED A PRICING HOLIDAY IN THE PAST BUT THAT SHOULDN'T OBSCURE THE POLITICAL SIGNIFICANCE OF THEIR POSITION TODAY JUST AS RESENTMENT OF THOSE WHO GOT RICH UNDER REAGAN WAS AN OCCASION FOR HIGHER TAXES ON MOST AMERICANS SO NOW HAVE WE SEEN PHARMACEUTICAL PROFITS BE THE OPENING WEDGE IN A CAMPAIGN TO NATIONALIZE US MEDICINE IT IS THEREFORE HEARTENING TO HEAR THIS ARM OF THE MEDICAL INDUSTRY LOB A FEW SHELLS BACK THE AMA BY CONTRAST APPEARS ALREADY TO HAVE ROLLED OVER FOR THE CLINTONITES NO BIG SURPRISE UNFORTUNATELY NO LOBBY IS TAKING UP THE CASE FOR IRATYPE MEDICAL SAVINGS ACCOUNTS THAT COULD RESTORE CONSUMER SOVEREIGNTY AND THAT MIGHT SOMEHOW FIGURE IN WHAT FINALLY CLEARS CONGRESS FINANCIALLY AND ETHICALLY IT'S ABSOLUTELY THE BEST IDEA MR DANIELS SAID BUT THE QUESTION IS WHETHER THE POLITICAL PROCESS WOULD EVER LET THAT MUCH FREEDOM RING NOW THAT'S WASHINGTON THINK FACT IS NO ONE KNOWS WHAT WILL COME OUT OF THIS WASH MITCH DANIELS WHO REMEMBERS THE TAXREVISION BATTLE OF 198586 LIKENED IT IN SCALE AND SCOPE TO CLINTONMEDICS THOUGH THE 86 REFORM HAD A LOT OF VIRTUE AND THIS HAS PRACTICALLY NONE BUT A 28 TAX RATE WAS A PRODUCT OF ROUNDABOUT LAWMAKING FREEDOM FIGHTERS SHOULD TRY SIMILAR END RUNS IN THE DAYS AHEAD 9309210071 930921 CBOE PLANS TO LIST OPTIONS CONTRACTS BASED ON NASDAQ CHICAGO THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT PLANS TO LIST OPTIONS CONTRACTS BASED ON AN INDEX OF 100 STOCKS TRADED ON THE FASTGROWING NASDAQ OVERTHECOUNTER MARKET RETAIL INVESTORS VIEW THE NASDAQ 100 AS A PROXY FOR SOME OF THE MOST HIGHLY TRADED ISSUES ON THE NASDAQ STOCK MARKET SAID JOSEPH R HARDIMAN NASDAQ'S PRESIDENT NASDAQ 100 OPTIONS WILL GIVE INVESTORS A NEW TOOL FOR MARKET TIMING AND HEDGING IN NASDAQ STOCKS STOCKS TRADED ON THE NASDAQ SYSTEM INCLUDE MICROSOFT AND MCI COMMUNICATIONS CORP SINCE 1991 THE NASDAQ 100 INDEX A CROSS SECTION OF THE BIGGEST NONFINANCIAL STOCKS ON THE SYSTEM HAS RISEN MORE THAN 85 IT MAKES SENSE FOR THE CBOE AND NASDAQ TO OVERLAP THEIR EFFORTS SAID JIM BRUCKI VICE PRESIDENT AT JJB HILLIARD WL LYONS IN LOUISVILLE KY THERE HAS BEEN AN INTEREST IN TRADING INDEXES IN THE NASDAQ MARKET FOR A WHILE NOW BECAUSE OF THE RECENT RISE IN THE NASDAQ 100 OFFICIALS AT THE CBOE THE NATION'S BIGGEST STOCKOPTION EXCHANGE HOPE THAT BOTH INDIVIDUAL AND INSTITUTIONAL INVESTORS WILL USE THE NEW NASDAQ INDEX OPTIONS CONTRACTS IF YOU LOOK AT THE PERFORMANCE OF OVERTHECOUNTER MARKETS OVER THE LAST COUPLE OF YEARS YOU'LL SEE THAT MORE AND MORE PEOPLE ARE FOCUSING ON THESE MARKETS FOR RETURNS SAID JOSEPH LEVIN VICE PRESIDENT OF RESEARCH AT THE CBOE YET AS WITH MOST NEW OPTIONS CONTRACTS SOME POTENTIAL USERS THINK THE GROWTH OF THE NASDAQ 100 OPTIONS IS LIKELY TO BE GRADUAL I DON'T SEE A LOT OF PEOPLE RUNNING NASDAQ 100 INDEX FUNDS SAID CLAUDIA MOTT A MARKET STRATEGIST AT PRUDENTIAL SECURITIES SO THEY DON'T NEED TO HAVE OPTIONS ON THE INDEX TO HEDGE THEIR POSITIONS THE CBOE WILL SOON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION FOR PERMISSION TO LIST THE NASDAQ 100 OPTIONS 9309210070 930921 BUSINESS BRIEF BOMBARDIER INC MITSUBISHI TO SUPPLY PARTS FOR NEW BUSINESS AIRCRAFT BOMBARDIER INC SAID IT SELECTED MITSUBISHI HEAVY INDUSTRIES LTD TO SUPPLY THE WING AND CENTER FUSELAGE SECTIONS FOR AN INTERCONTINENTAL BUSINESS JET BEING DEVELOPED BY BOMBARDIER'S CANADAIR UNIT BOMBARDIER ALSO SAID IT HAS SET A PRICE OF ABOUT 28 MILLION US FOR THE AIRCRAFT THE CANADAIR GLOBAL EXPRESS THE MONTREAL TRANSPORTATIONEQUIPMENT MAKER SAID IT WILL BEGIN SEEKING FIRM ORDERS FOR THE AIRCRAFT WHICH IS DESIGNED TO FLY EIGHT PASSENGERS AND A FOURPERSON CREW UP TO 7475 MILES NONSTOP MITSUBISHI A TOKYO HEAVYEQUIPMENT AND AEROSPACE COMPANY IS TO DELIVER THE FIRST WING SET IN EARLY 1996 THE PLANE IS EXPECTED TO ENTER SERVICE IN 1998 9309210069 930921 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PHILADELPHIA CONSOLIDATED HOLDING CORP AN INITIAL OFFERING OF 28 MILLION COMMON SHARES VIA SG WARBURG & CO INC AND CHICAGO CORP QUAKER FABRIC CO AN INITIAL OFFERING OF 21 MILLION SHARES OF COMMON STOCKS VIA SMITH BARNEY SHEARSON INC AND THE ROBINSONHUMPHREY CO QUANTUM HEALTH RESOURCES INC AN OFFERING OF 50 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE 2000 VIA LEHMAN BROTHERS INC AND SMITH BARNEY SHEARSON INC TEJAS GAS CORP AN OFFERING OF 65 MILLION OF CONVERTIBLE PREFERRED STOCK VIA MERRIL LYNCH & CO AND DILLON READ & CO 9309210068 930921 ENTERRAKUWAIT OIL CO DISPUTE HOUSTON ENTERRA CORP SAID IT IS IN A DISPUTE WITH KUWAIT OIL CO REGARDING PAYMENT OF ABOUT 10 MILLION THE COMPANY IS OWED FOR CERTAIN OILSERVICE WORK COMPLETED IN KUWAIT 9309210067 930921 WHO'S NEWS CROTTY NAMED HEAD OF ITT'S DIRECTORIES AND SCHOOLS DIVISION NEW YORK ITT CORP NAMED GERALD R CROTTY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS ITT COMMUNICATIONS & INFORMATION SERVICES INC UNIT EFFECTIVE NOV 1 MR CROTTY 41 YEARS OLD SUCCEEDS DANIEL P WEADOCK 54 RECENTLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT ITT SHERATON ITT'S HOTEL UNIT FORMERLY CHIEF OF STAFF FOR NEW YORK GOV MARIO CUOMO MR CROTTY JOINED ITT IN 1991 AS A CORPORATE VICE PRESIDENT AND EXECUTIVE REPRESENTATIVE TO THE OFFICE OF THE CHAIRMAN HE IS PRESIDENT AND CHIEF OPERATING OFFICER AT ITT CONSUMER FINANCIAL INC THE ITT COMMUNICATIONS & INFORMATION SERVICES UNIT WHICH SELLS TELEPHONE DIRECTORIES WORLDWIDE AND OPERATES TECHNICAL SCHOOLS IN THE US HAD 113 BILLION IN REVENUE LAST YEAR IT WAS THE MOST PROFITABLE OF ITT'S EIGHT DIVISIONS IN 1992 MR CROTTY SAID THE UNIT WOULD EXPLORE EXPANSION POSSIBILITIES AT ITS WORLD DIRECTORIES BUSINESS WE WANT TO LOOK TO ADD NEW MARKETS GEOGRAPHICALLY AND EXPAND IN OTHER AREAS OF COMMUNICATIONS WHEN IT MAKES ECONOMIC SENSE FOR US TO DO SO MR CROTTY SAID ITT IS A MULTINATIONAL COMPANY WITH INTERESTS IN INSURANCE HOTELS FINANCIAL SERVICES TIMBER AND DEFENSE 9309210066 930921 WHO'S NEWS NBD BANCORP'S FISHER TO QUIT 3 TOP POSTS ISTOCK JEFFS NAMED DETROIT CHARLES T FISHER III NBD BANCORP'S PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE WILL RETIRE DEC 31 AND BE SUCCEEDED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY VERNE G ISTOCK A VICE CHAIRMAN OF THE REGIONAL BANK HOLDING COMPANY THOMAS H JEFFS WHO ALSO IS A VICE CHAIRMAN WILL ASSUME THE DUTIES OF PRESIDENT AND CHIEF OPERATING OFFICER MR FISHER SAID MR FISHER WHO WILL BE 64 YEARS OLD IN NOVEMBER SAID HE WILL RETIRE 11 MONTHS BEFORE REACHING THE COMPANY'S MANDATORY RETIREMENT AGE OF 65 MR FISHER SAID HE IS STEPPING DOWN EARLY AND ANNOUNCING HIS RETIREMENT NOW TO PROVIDE THE BANK WITH AN ORDERLY SUCCESSION MR FISHER PLEDGED THAT THE BANK WOULD CONTINUE TO PURSUE A CONSERVATIVE STRATEGY UNDER MESSRS ISTOCK AND JEFFS BOTH LONGTIME NBD EXECUTIVES MR FISHER THE SON OF A FORMER PRESIDENT OF NBD WILL REMAIN ON NBD'S BOARD AND HE SAID ON THE BOARDS OF GENERAL MOTORS CORP AND AMR CORP MR JEFFS 55 JOINED NBD A YEAR EARLIER ALSO AS A CREDIT ANALYST TRAINEE AND ALSO WAS NAMED EXECUTIVE VICE PRESIDENT IN 1982 AND A VICE CHAIRMAN IN 1985 MESSRS ISTOCK AND JEFFS BOTH ARE NATIVES OF GROSSE POINTE MICH AND BOTH RECEIVED UNDERGRADUATE DEGREES AND MBA DEGREES FROM THE UNIVERSITY OF MICHIGAN 9309210065 930921 BUSINESS BRIEF ARC INTERNATIONAL CORP PUBLIC OFFERING IS PLANNED OF STAKE IN CABLETEL UNIT ARC INTERNATIONAL CORP SAID IT PLANS TO SELL UP TO 49 OF ITS STAKE IN ITS CABLETEL COMMUNICATIONS UNIT TO THE PUBLIC BEFORE THE END OF THE YEAR ARNOLD TENNEY PRESIDENT OF ARC SAID IT IS PREMATURE TO SAY HOW MUCH MIGHT BE RAISED FROM THE OFFERING PROCEEDS WILL GO TO CABLETEL HE SAID AND WILL BE USED TO REPAY LOANS TO ARC AND TO FINANCE FUTURE DEVELOPMENT OF CABLE TELEVISION PRODUCTS CABLETEL PROVIDES CABLE TELEVISION SYSTEM OPERATORS WITH A VARIETY OF PRODUCTS RANGING FROM COAXIAL CABLE TO FIBRE OPTIC TRANSMITTERS AND RECEIVERS ARC BASED IN DOWNSVIEW ONTARIO IS A DIVERSIFIED MANUFACTURING CONCERN WITH INTERESTS IN TELECOMMUNICATIONS AND EQUIPMENT FOR THE FOOD SERVICE INDUSTRY 9309210064 930921 TECHNOLOGY WANG LABS REORGANIZATION IS CLEARED ALLOWING EMERGENCE FROM CHAPTER 11 BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL WANG LABORATORIES INC'S PLAN OF REORGANIZATION WAS CONFIRMED BY A BANKRUPTCYCOURT JUDGE CLEARING THE WAY FOR WANG TO EMERGE FROM CHAPTER 11 PROTECTION AFTER 13 MONTHS OF SUPERVISION THE LOWELL MASSBASED COMPUTER MAKER SAID IT IS EMERGING WITH ALMOST NO DEBT AND A STRONG BALANCE SHEET WANG HAS SAID THAT IT PLANS TO RECAST ITSELF AS A SMALLER COMPANY FOCUSED ON OFFICE SOFTWARE AND SERVICES ALTHOUGH ITS PROSPECTS REMAIN UNCERTAIN WANG PREVIOUSLY OUTLINED TERMS OF THE REORGANIZATION BUT A SURPRISE BIDDING CONTEST DEVELOPED BETWEEN STEINHARDT MANAGEMENT WHICH WAS TO PROVIDE 60 MILLION IN EXCHANGE FOR A STAKE IN WANG AND AN INVESTOR GROUP INCLUDING NATWEST SECURITIES STEINHARDT WON THE BIDDING YESTERDAY BUT ACCEPTED A LOWER INTEREST RATE AND FEWER SHARES ORIGINAL TERMS OF THE PLANNED PRIVATE PLACEMENT TO STEINHARDT WERE FOR 60 MILLION OF 12 EXCHANGEABLE PREFERRED STOCK 24 MILLION NEW SHARES ISSUED BY WANG AND WARRANTS FOR 12 MILLION SHARES OF NEW COMMON AT AN EXERCISE PRICE OF 750 A SHARE UNDER THE NEW TERMS THE 60 MILLION PRIVATE PLACEMENT WILL BE 11 EXCHANGEABLE PREFERRED STOCK PLUS 15 MILLION SHARES OF THE NEW COMMON WANG SAID THE NEW TERMS RESULTING FROM A SEALED BID AUCTION CONDUCTED BY THE COURT ARE SIGNIFICANTLY BETTER FOR WANG WANG SAID IT WILL EMPLOY ABOUT 6000 PEOPLE AND REPORT A PROFIT OF 25 MILLION ON ABOUT 941 MILLION IN REVENUE FOR THE FISCAL YEAR ENDING NEXT JUNE 30 AT ITS PEAK WANG HAD A WORK FORCE OF 32000 AND REVENUE OF 3 BILLION BEFORE ITS LONG SLIDE ENDED IN BANKRUPTCY COURT AUG 18 1992 WITH CRUSHING DEBT OF 575 MILLION UNDER THE PLAN OWNERSHIP OF THE COMPANY WILL BE TRANSFERRED TO ITS UNSECURED CREDITORS INCLUDING DEBTHOLDERS 30 MILLION SHARES OF NEW COMMON STOCK IN THE REORGANIZED WANG WILL BE ISSUED TO THESE CREDITORS AND THE COMPANY'S CURRENT CLASS B AND CLASS C COMMON STOCK WILL BE CANCELED THE COMPANY SAID IT PLANS TO LIST ITS NEW STOCK AND WARRANTS ON THE NATIONAL OVERTHECOUNTER MARKET CURRENT HOLDERS OF CLASS B AND CLASS C STOCK TREATED THE SAME UNDER THE PLAN WILL BE ISSUED SEVENYEAR NINEMONTH WARRANTS PAYABLE ONLY AFTER 95 OF TOTAL CREDITORS' CLAIMS HAVE BEEN SATISFIED WANG SAID THAT UNDER THE REORGANIZATION PLAN ITS NEW STRATEGY WILL BE SUPPORTED BY AN EXCEPTIONALLY STRONG CAPITAL STRUCTURE RESULTING FROM THE CONVERSION OF OLD DEBT TO NEW EQUITY AND THE INFUSION OF NEW CAPITAL IT ALSO SAID THAT UP TO 125 OF THE COMMON STOCK IN THE NEW WANG WILL BE OWNED BY EMPLOYEES STILL WANG'S OUTLOOK REMAINS CLOUDED ITS SERVICE BUSINESS A MAJOR CONTRIBUTOR TO REVENUE CENTERS ON MAINTAINING AND UPGRADING AN INSTALLED BASE OF WANG MINICOMPUTERS A DECLINING BUSINESS AND ITS DOCUMENTIMAGING SOFTWARE WHICH LED THE INDUSTRY WHEN IT WAS INTRODUCED NOW FACES COMPETITION FROM LARGER COMPANIES 9309210063 930921 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THOUGH MORE MONEY IS SPENT ON MOVIES THAN EVER BEFORE IT'S RARE TO SEE A PICTURE WHERE BEAUTY COMMANDS THE BIG BUCKS NOT EXPLOSIVES OR MECHANICAL CREATURES THE AGE OF INNOCENCE MR SCORSESE'S ADAPTATION OF THE EDITH WHARTON NOVEL IS ALMOST DEFIANTLY GORGEOUS NOT PRETTY THIS ISN'T JUST ANOTHER SUPERFICIAL PERIOD PIECE THAT'S RIGHT ON THE DETAILS OF 19THCENTURY CUISINE AND COSTUME BUT WRONG IN SPIRIT IN ALMOST ALL WAYS MR SCORSESE AND SCREENWRITER JAY COCKS HAVE BEEN DUTIFUL TO WHARTON'S TEXT IT'S A MAGNIFICENT MOVIE THIS STORY ABOUT A YOUNG CHESS WIZARD AND THE GROWNUPS WHO ENCOURAGE HIM IS AN ENTERTAINING EXCURSION INTO THE SUBCULTURE OF JUVENILE CHESS COMPETITION THE PREACHINESS IS A LITTLE OBVIOUS WE DON'T NEED TO BE TOLD QUITE SO DIRECTLY THAT LITTLE BOYS SHOULD NOT LIVE TO COMPETE ONLY AT CHESS THAT THEY NEED BASEBALL TOO BUT THE MOVIE DOES CAPTURE SOME OF THE WEIRDNESS OF THE TOURNAMENTCHESS WORLD AS WELL AS THE MYTHIC INFLUENCE OF BOBBY FISCHER THE ELUSIVE CRACKED GENIUS ON THAT WORLD AND YOUNG MAX POMERANC AS THE JUNIOR CHESS GENIUS MAKES BOTH CUTENESS AND OBSESSIVENESS ENDEARING A NICE FAMILY PICTURE IT'S A WISE BEAUTIFUL MOVIE ABOUT A POOR SMART BOY WHO COMES OF AGE DURING THE DEPRESSION IN ST LOUIS THIS ADAPTATION OF AE HOTCHNER'S MEMOIR IS EVOCATIVE OF TIME AND PLACE AS WELL OF PERSPECTIVE THE PICTURE DOESN'T DEVIATE FROM THE POINT OF VIEW OF THE 12YEAROLD BOY WHO SITS WITH SUCH SELFASSURANCE AT THE CENTER OF THIS SPIRITED RECOLLECTION OF A DOUBLY DIFFICULT TIME PUBERTY AND THE DEPRESSION THE STORY IS ABOUT FOUR WOMEN WHO MET WEEKLY FOR 30 YEARS TO PLAY MAHJONGG AND THEIR DAUGHTERS PRESENTED AS AN EMOTIONAL COLLAGE THE MOTHERS IMMIGRANTS FROM CHINA SURVIVED ENORMOUS HARDSHIPS THE DAUGHTERS HAVE LED MUCH SOFTER LIVES AS COMFORTABLE AMERICANS THE DAUGHTERS ARE CONNECTED BY THE COMMON MYSTERY OF THEIR MOTHERS WHO WERE RAISED IN A CULTURE THE DAUGHTERS CAN ONLY IMAGINE THE PAST OF THE JOY LUCK CLUB MEMBERS HAS BEEN GIVEN THE MYTHOLOGICAL TONE OF A FABLE WITH NICE DETAIL AND MUCH FEELING THE FILMMAKERS SHOW US HOW THE PAST INFORMS THE PRESENT SADLY AND POWERFULLY THE PLOT RAISES THE KIND OF COMPLICATIONS THAT USED TO DEVELOP IN DORIS DAYROCK HUDSON MOVIES OR THAT MIGHT HAVE IF HUDSON HAD BEEN OPENLY GAY IN THIS ROMANTIC COMEDY A YOUNG MAN WANTS TO LIVE THE WAY HE CHOOSES WITHOUT OFFENDING HIS PARENTS HE'S MANAGED THOUGH HE'S GAY AND HIS PARENTS ARE CONSERVATIVE TAIWANESE MAINLY BECAUSE HE LIVES IN NEW YORK AND THEY LIVE IN TAIWAN TROUBLE LOOMS WHEN WAI TUNG'S LOVER SUGGESTS THAT WAI TUNG GET HIS PARENTS OFF HIS BACK BY MARRYING A WOMAN WHO NEEDS A GREEN CARD THE PLOT THICKENS WHEN HIS PARENTS ARRIVE FOR THE WEDDING THIS ELEGANTLY AUSTERE MOVIE REMAINS FAITHFUL TO FRANCES HODGSON BURNETT'S MORBIDLY APPEALING CHILDREN'S STORY OF SORROW AND REDEMPTION THE FILMMAKERS HAVE BEAUTIFULLY RECREATED THE GARDEN THAT SAVES MARY FROM MISERY AS WELL AS THE GLOOMY ENGLISH HOUSEHOLD FROM WHICH THE YOUNG ORPHAN NEEDS TO ESCAPE IT'S A LOVELY FILM FOR CHILDREN AND THEIR PARENTS 9309210062 930921 BUSINESS BRIEF CENTRE REINSURANCE HOLDINGS LTD BERMUDA COMPANY FORMED FOR CATASTROPHE REINSURANCE CENTRE REINSURANCE HOLDINGS LTD OF HAMILTON BERMUDA SAID IT FORMED A CATASTROPHE REINSURANCE COMPANY WITH AFFILIATES OF MORGAN STANLEY GROUP INC THE COMPANY CENTRE CAT LTD WILL BE BASED IN BERMUDA AND WILL HAVE AN INITIAL CAPITALIZATION OF 300 MILLION CENTRE SAID OTHER INVESTORS IN THE GROUP INCLUDE CHUBB CORP THE AMERICAN TELEPHONE & TELEGRAPH CO PENISON FUND CERTAIN PENSION TRUSTS OF GENERAL MOTORS CORP CHEMICAL VENTURE PARTNERS A UNIT OF CHEMICAL BANKING CORP AND ZURICH REINSURANCE CENTRE HOLDINGS INC A MEMBER OF THE ZURICH INSURANCE GROUP THE CONCERN IS ONE OF SEVERAL REINSURANCE COMPANIES RECENTLY FORMED AT A TIME WHEN THERE'S AN APPARENT LACK OF CAPACITY TO PROVIDE REINSURANCE COVERAGE IN THE PROPERTYCASUALTY FIELD 9309210061 930921 US SURGICAL CITES BULGING INVENTORY STOCK SINKS 41 BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ONCE HIGHFLYING US SURGICAL CORP SAID IT'S STILL STRUGGLING WITH BULGING INVENTORIES AND ITS STOCK SLID ON PROJECTIONS OF CONTINUED NEARTERM CASHFLOW PROBLEMS SALES FOR THE MAKER OF MINIMALLY INVASIVE SURGICAL EQUIPMENT HAVE SURGED TO 1 BILLION IN 1992 FROM 481 MILLION IN 1990 IN RECENT YEARS AS POPULARITY OF THE TECHNIQUE HAS BROADENED BUT US SURGICAL'S HOLD ON THE MARKET HAS WEAKENED PARTICULARLY DUE TO RENEWED COMPETITION FROM JOHNSON & JOHNSON'S ETHICON UNIT MOREOVER THE COMPANY HAS SEEN ITS INVENTORIES RISING AS CUSTOMERS DEMAND MORE JUSTINTIME DELIVERIES AND AS HOSPITALS HAVE CUT BACK ON PURCHASES AS THEY STUDY THE IMPLICATIONS OF THE CLINTON ADMINISTRATION'S HEALTHCARE PROPOSALS YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING US SURGICAL SHARES DECLINED 875 CENTS OR 41 TO 20625 A SHARE IN ACTIVE TRADING IN WHICH ALMOST 11 MILLION SHARES CHANGED HANDS THE SHARES TRADED AS HIGH AS 134 IN 1992 US SURGICAL SPENT HEAVILY TO BEEF UP PRODUCTION CAPACITY PLANT AND EQUIPMENT SPENDING TOTALED 2707 MILLION IN 1992 UP FROM 1469 MILLION IN 1991 AND 78 MILLION IN 1990 BUT THE SPENDING SPREE HAS TAKEN ITS TOLL ON CASH FLOW WHICH WAS A NEGATIVE 154 MILLION LAST YEAR AND A NEGATIVE 823 MILLION FOR 1993'S FIRST HALF THE CASH POSITION HAS BEEN AGGRAVATED BY THE INVENTORY BULGE WHICH ROSE TO 2108 MILLION LAST YEAR FROM 166 MILLION A YEAR EARLIER AND WHICH TOTALED 2487 MILLION AT JUNE 30 THIS YEAR IN A TALK TO ANALYSTS YESTERDAY MARIANNE SCIPIONE VICE PRESIDENT CORPORATE COMMUNICATIONS SAID THE COMPANY EXPECTS TO ALMOST HALVE CAPITAL EXPENSES TO BETWEEN 100 MILLION AND 125 MILLION IN 1994 FROM AN ESTIMATED 210 MILLION TO 225 MILLION THIS YEAR AND SHE SAID REDUCED OVERHEAD AND MANUFACTURING COSTS WOULD IMPROVE CASH FLOW WHICH SHE SAID THE COMPANY EXPECTS TO BE POSITIVE FOR ALL OF 1994 SHE SAID THE COMPANY HADN'T ANY PLANS TO CUT ITS 1100PERSON SALES STAFF OR ITS RESEARCH AND DEVELOPMENT BUDGET WHICH TOTALED 438 MILLION LAST YEAR I THINK TURNING CASH FLOW POSITIVE IN 1994 MAY PROVE TO BE OPTIMISTIC SAID DANIEL T LEMAITRE AN ANALYST AT COWEN & CO WHO RATES US SURGICAL NEUTRAL OUR OWN MODELS DON'T SHOW POSITIVE CASH FLOW UNTIL THE END OF 1996 HE FIGURES CASH FLOW COULD BE A NEGATIVE 200 MILLION THIS YEAR 9309210060 930921 INTERNATIONAL US PLEDGES AID TIED TO MIDEAST PACT PLANS TALKS ON WEST BANK GAZA FUNDS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLEDGED 250 MILLION OF ASSISTANCE OVER TWO YEARS AS PART OF A PACKAGE TO BOLSTER ISRAELIPALESTINIAN PEACE EFFORTS WITH THE MONEY COMING FROM EXISTING FOREIGNAID FUNDS RATHER THAN ADDITIONAL SPENDING THE ADMINISTRATION ALSO SAID IT WILL CONVENE A CONFERENCE OF POTENTIAL DONOR NATIONS PROBABLY WITHIN THE NEXT FEW WEEKS IN WASHINGTON TO COORDINATE RAISING ABOUT 3 BILLION TO INVEST IN GAZA AND THE WEST BANK OVER A PERIOD OF YEARS SECRETARY OF STATE WARREN CHRISTOPHER ANNOUNCING THE CONFERENCE IN A SPEECH AT COLUMBIA UNIVERSITY IN NEW YORK YESTERDAY A WEEK AFTER THE SIGNING OF THE HISTORIC ISRAELIPALESTINIAN ACCORD SAID IF PEACE IS TO BE ACHIEVED THE AGREEMENT MUST BE TRANSLATED INTO RESULTS QUICKLY AND VIVIDLY THE OVERALL GOAL IS RELATIVELY MODEST FAR LESS THAN THE BILLIONS SPENT ANNUALLY BY THE US ALONE ON AID TO ISRAEL AND EGYPT SINCE THE 1979 CAMP DAVID ACCORD BUT US OFFICIALS EMPHASIZED THAT IN ADDITION TO THE DICTATES OF OVERALL AUSTERITY IN THE FEDERAL BUDGET THE OCCUPIED TERRITORIES INITIALLY WILL HAVE A LIMITED CAPACITY TO ABSORB INVESTMENT THE COMMITMENT IS TO RAISE THE RESOURCES THAT CAN BE WELL SPENT A US OFFICIAL SAID HOWEVER IT'S LIKELY THAT BOTH THE TOTAL AND THE US CONTRIBUTION WILL HAVE TO RISE OVER THE NEXT DECADE SOME NATIONS ALREADY HAVE MADE GENERAL COMMITMENTS TO SUPPORT THE PALESTINIANS' EFFORTS RECENTLY THE EUROPEAN COMMUNITY PLEDGED 590 MILLION OVER FIVE YEARS AND SCANDINAVIAN COUNTRIES OFFERED ABOUT 140 MILLION OVER THE NEXT FOUR YEARS MR CHRISTOPHER SAID FOREIGN AND FINANCE MINISTERS FROM EUROPE CANADA JAPAN SAUDI ARABIA AND OTHER PERSIAN GULF ARAB STATES WOULD BE INVITED TO JOIN WORLD BANK OFFICIALS ISRAELIS AND PALESTINIANS AT THE DONORS' CONFERENCE WHICH WOULD BE COSPONSORED BY RUSSIA MOST OF THESE MINISTERS WILL BE IN THE US IN THE NEXT FEW WEEKS EITHER ATTENDING THE ANNUAL OPENING OF THE UNITED NATIONS GENERAL ASSEMBLY IN NEW YORK OR THE ANNUAL MEETINGS OF THE INTERNATIONAL MONETARY FUND AND WORLD BANK HERE THE US CONVENED A SIMILAR MEETING EARLY LAST YEAR TO COORDINATE AID EFFORTS FOR THE FORMER SOVIET UNION THAT EFFORT PRODUCED STRONG VERBAL PLEDGES BUT LITTLE FINANCIAL SUPPORT THIS TIME THE US IS USING AS ITS REFERENCE POINT A RECENT WORLD BANK STUDY THAT RECOMMENDS 3 BILLION IN INVESTMENT OVER 10 YEARS AS ISRAEL TURNS OVER GOVERNANCE OF GAZA AND THE WEST BANK TO PALESTINIAN AUTHORITY A SENIOR US OFFICIAL SAID THE ADMINISTRATION WOULD CONTRIBUTE 150 MILLION OVER TWO YEARS FOR TECHNICAL ASSISTANCE AND 100 MILLION IN LOAN GUARANTEES ANOTHER US OFFICIAL EMPHASIZING THAT THE ADMINISTRATION WILL CONSULT WITH CONGRESS SAID WE ARE PLANNING ON THE ASSUMPTION THAT WE HAVE TO LIVE WITHIN EXISTING RESOURCES MEANING THAT THE PROPOSAL WILL REQUIRE CUTS ELSEWHERE IN US FOREIGN AID THE TECHNICAL AID WOULD AMONG OTHER THINGS HELP PALESTINIANS ESTABLISH GOVERNMENT INSTITUTIONS DEVELOP AND STRENGTHEN A BANKING SYSTEM AND A TAX COLLECTION SYSTEM AND PROVIDE AGRICULTURAL PRODUCTION AND MARKETING ADVICE THE SENIOR US OFFICIAL SAID ALTHOUGH THE US FINANCIAL CONTRIBUTION WILL BE MODEST MR CHRISTOPHER UNDERSCORED IN HIS SPEECH THAT THE ADMINISTRATION WILL PLAY A DOMINANT ROLE IN MIDEAST DIPLOMACY HE URGED ARAB GOVERNMENTS TO OPEN DIPLOMATIC RELATIONS WITH ISRAEL AND TO END THEIR ECONOMIC BOYCOTT OF THE JEWISH STATE THE BOYCOTT IS A RELIC OF THE PAST IT IS A RELIC THAT SHOULD BE RELEGATED TO HISTORY NOW HE SAID MR CHRISTOPHER ALSO CALLED ON THE UN GENERAL ASSEMBLY TO REVOKE RESOLUTIONS THAT CHALLENGE ISRAEL'S VERY RIGHT TO EXIST AND IN VIEW OF ISRAEL'S RECONCILIATION WITH THE PALESTINE LIBERATION ORGANIZATION HE CALLED ON CONGRESS TO BEGIN CHANGING STATUTES THAT RESTRICT US DEALINGS WITH THE PLO 9309210059 930921 BUSINESS BRIEF ARTISOFT INC COMPANY BUYS 20 OF STOCK IN PACT WITH ITS FOUNDER ARTISOFT INC SAID IT BOUGHT ABOUT 35 MILLION OF ITS SHARES REPRESENTING ABOUT 20 OF THE COMPANY'S STOCK OUTSTANDING AS PART OF AN AGREEEMENT WITH ITS FOUNDER AND FORMER CHIEF EXECUTIVE OFFICER C JOHN SCHOOF II WHO WAS OUSTED IN JUNE ARTISOFT SAID IT PAID 255 MILLION FOR THE STOCK TOGETHER WITH ALL OPTIONS FOR ARTISOFT STOCK HELD BY MR SCHOOF AND SETTLED ALL OUTSTANDING CLAIMS ASSERTED BY MR SCHOOF WHO ALSO RESIGNED FROM THE BOARD ARTISOFT SAID THAT AFTER THE PURCHASE IT HAS ABOUT 14 MILLION SHARES OUTSTANDING THE COMPANY'S STOCK ROSE 375 CENTS A SHARE TO 8125 IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY BASED IN TUCSON ARIZ MAKES SYSTEMS THAT ALLOW COMPUTERS TO NETWORK IN GROUPS MR SCHOOF HAD OPPOSED HIS DISMISSAL AND HAD NOMINATED THREE ADDITIONAL PEOPLE TO SERVE ON THE BOARD WITH HIM THE NOMINATIONS WERE WITHDRAWN AS PART OF THE SETTLEMENT ARTISOFT SAID 9309210058 930921 CLINTON PLAN BACKED BY DOCTORS' GROUP GOP CHAIRMAN ATTACKS PARTS OF REFORM BY HILARY STOUT AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S SECONDLARGEST PHYSICIANS' ORGANIZATION ENDORSED THE CLINTON HEALTHCARE PLAN AS A MODERATE AND UNIQUELY AMERICAN APPROACH TO REFORM THE SUPPORT OF THE AMERICAN COLLEGE OF PHYSICIANS WAS ANNOUNCED DURING A WHITE HOUSE BREAKFAST AT WHICH C EVERETT KOOP WHO WAS SURGEON GENERAL DURING THE REAGAN ADMINISTRATION URGED THE MEDICAL PROFESSION TO WORK WITH PRESIDENT CLINTON TO OVERHAUL THE HEALTH SYSTEM LATER DR KOOP IMPLORED A HUGE BIPARTISAN FORUM OF LAWMAKERS ON CAPITOL HILL TO WORK TOWARD A COMPREHENSIVE HEALTH BILL BUT AS DOCTORS SPOKE HIGHLY OF THE PLAN THE CHAIRMAN OF THE REPUBLICAN PARTY URGED GOP LEADERS TO ATTACK KEY PARTS OF THE CLINTON HEALTHCARE PLAN THE SUGGESTION BY HALEY BARBOUR CHAIRMAN OF THE REPUBLICAN NATIONAL COMMITTEE CONTRADICTS THE CONCILIATORY APPROACH THAT HAS BEEN TAKEN LATELY BY CONGRESSIONAL REPUBLICANS IN A REPORT SENT TO GOP LEADERS AROUND THE COUNTRY LAST WEEK MR BARBOUR WROTE THAT THE CLINTON PLAN OUTLINES A GOVERNMENTRUN HEALTHCARE SYSTEM THAT JEOPARDIZES THE QUALITY OF CARE FAMILIES RECEIVE AND WOULD BE FINANCED BY TAX INCREASES AND EMPLOYER MANDATES THAT WILL HURT THE ECONOMY AND COST UP TO 31 MILLION JOBS HE ALSO ASSERTED THAT CLINTON'S PLAN CREATES A MASSIVE INEFFICIENT BUREAUCRATIC STRUCTURE THAT SIMPLY ISN'T NEEDED MR BARBOUR'S SCATHING TONE STOOD IN CONTRAST TO THE GLOW OF BIPARTISANSHIP THAT SURROUNDED A VISIT TO CAPITOL HILL BY HILLARY RODHAM CLINTON FLANKED BY CABINET SECRETARIES THE PRESIDENT'S WIFE OPENED WHAT AMOUNTED TO A MASSIVE BIPARTISAN TEACHIN IN ANTICIPATION OF MR CLINTON'S ADDRESS TO CONGRESS TOMORROW WITH MORE THAN 300 LAWMAKERS FROM THE HOUSE AND SENATE SIGNED UP FOR TWO DAYS OF TALK ABOUT THE HEALTH PLAN THE CLOSEDDOOR ACTIVITIES FOR THE MOMENT AT LEAST CAPTURED A SPIRIT OF COMMON PURPOSE THAT LATELY HAS ELUDED THIS CAPITAL CITY DURING A NEWS CONFERENCE FOR EXAMPLE SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE BROKE WITH USUAL PRACTICE AND INTRODUCED HOUSE MINORITY LEADER ROBERT MICHEL R ILL BEFORE HE CALLED UPON HOUSE SPEAKER TOM FOLEY D WASH BOTH REP MICHEL AND ANOTHER GOP LEADER SEN DON NICKLES R OKLA WERE COMPLIMENTARY OF MRS CLINTON SEN NICHOLS ACKNOWLEDGED THAT THE PARTIES WOULD HAVE SOME DIFFERENCES ON THE HEALTH PLAN BUT STRESSED THAT REPUBLICANS WANT TO WORK WITH DEMOCRATS ON IT THIS IS NOT A SPORTING CONTEST AND THE STORY HERE IS NOT ONE OF CONFLICT HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO TOLD REPORTERS IN THE SAME VEIN MRS CLINTON SOUGHT TO ISOLATE THOSE IN THE INSURANCE INDUSTRY WHO HAVE LAUNCHED ADVERTISEMENTS ATTACKING THE PROPOSAL EVEN BEFORE THE PRESIDENT'S SPEECH IT'S SAD TO ME SHE SAID THAT ANY PART OF THE HEALTH INDUSTRY WOULD ENGAGE IN TACTICS LIKE THAT AT THIS POINT IN THE DEBATE MR BARBOUR HOWEVER WAS TRYING TO FOMENT SOME DISCORD HE HELD A TELEPHONE CONFERENCE WITH GOP LEADERS AROUND THE COUNTRY IN AN EFFORT TO PREPARE THEM TO GIVE THE REPUBLICAN RESPONSE TO MR CLINTON'S SPEECH A MEMO TO THEM OBTAINED BY THE WALL STREET JOURNAL SUPPORTS REPUBLICAN ALTERNATIVES TO THE CLINTON PLAN AND ASSERTS THAT THE PRESIDENT'S PROPOSAL WOULD RESTRICT A FAMILY'S CHOICE OF PHYSICIAN AND WOULD PRODUCE A GOVERNMENTRUN HEALTHCARE SYSTEM WITH AN UNBELIEVABLY POWERFUL AND LARGE GOVERNMENT BUREAUCRACY YOU MUST BE IN A POSITION TO MAKE NEWS IN YOUR STATES IN REACTION TO THE SPEECH MR BARBOUR'S MEMORANDUM STATES IN AN INTERVIEW MR BARBOUR DIDN'T DEMUR FROM ANY OF HIS CRITICISMS AND ADDED THAT THE PARTY WILL BE SENDING OUT EVEN MORE INFORMATION IN THE COMING DAYS BUT HE DID ALLOW REPUBLICANS THINK THERE CAN BE AND SHOULD BE A BIPARTISAN MAJORITY FOR HEALTHCARE REFORM IN CONGRESS WE ALREADY HAVE PUT TOGETHER TWO BILLS IN CONGRESS THAT SOLVE THE PROBLEMS WE HAVE IN OUR HEALTHCARE SYSTEM SUPPORT FROM THE AMERICAN COLLEGE OF PHYSICIANS IS PARTICULARLY WELCOME FOR THE WHITE HOUSE BECAUSE DOCTORS' GROUPS HAVE BEEN VEHEMENT OPPONENTS OF MANY EARLIER PROPOSALS TO REVISE THE HEALTHCARE SYSTEM NEVERTHELESS PHYSICIANS ARE HARDLY UNITED ON THE CLINTON HEALTHREFORM MEASURES THE AMERICAN MEDICAL ASSOCIATION THE NATION'S LARGEST AND RICHEST DOCTORS' ORGANIZATION HAS BEEN CRITICAL OF A NUMBER OF ELEMENTS OF THE CLINTON PLAN AND SUPPORTIVE OF OTHERS THE ACP'S SUPPORT ALTHOUGH ENTHUSIASTIC WAS SOMEWHAT QUALIFIED IN A NEWS RELEASE ANNOUNCING ITS OVERALL SUPPORT FOR THE PRESIDENT'S BLUEPRINT FOR HEALTHCARE REFORM THE GROUP SAID AS WITH ANY COMPLEX SET OF REFORMS THE PRESIDENT'S PROPOSAL CONTAINS ELEMENTS WHICH MUST BE CHANGED FOR FULL PHYSICIAN SUPPORT THE ACP WHICH REPRESENTS ABOUT 77000 INTERNISTS NATIONWIDE IS COMMONLY VIEWED AS ONE OF THE MORE LIBERAL GROUPS IN ORGANIZED MEDICINE A YEAR AGO IT STUNNED POLICYMAKERS BY COMING OUT IN FAVOR OF SETTING A NATIONAL BUDGET FOR HEALTHCARE SPENDING IN 1990 THE GROUP MADE HEADLINES BY ENDORSING UNIVERSAL ACCESS TO COMPREHENSIVE HEALTH CARE SINCE THEN ALMOST EVERY MAJOR MEDICAL GROUP INCLUDING THE AMA HAS PUBLICLY SUPPORTED UNIVERSAL COVERAGE THE WHITE HOUSE WAS TRYING TO PERSUADE NUMEROUS HEALTHINDUSTRY GROUPS TO STAND WITH PRESIDENT CLINTON IN A THURSDAY WHITE HOUSE CEREMONY IN SUPPORT OF HEALTHCARE OVERHAUL IN GENERAL NOT THE PRESIDENT'S PLAN IN PARTICULAR REPRESENTATIVES FROM THE AMERICAN HOSPITAL ASSOCIATION AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS SAID THEY WOULD ATTEND THE FEDERATION OF AMERICAN HEALTH SYSTEMS WHICH REPRESENTS FORPROFIT HOSPITALS HAS RESPECTFULLY DECLINED ACCORDING TO EXECUTIVE DIRECTOR MICHAEL BROMBERG A SPOKESMAN FOR THE HEALTH INSURANCE ASSOCIATION OF AMERICA WHICH HAS BEEN FEUDING WITH THE ADMINISTRATION SAID HE HAD NO KNOWLEDGE OF HIS GROUP BEING INVITED TO THE EVENT THE AMA HADN'T YET DECIDED WHETHER TO ATTEND DR KOOP IN HIS BREAKFAST SPEECH TO PHYSICIANS URGED DOCTORS TO WORK FOR CHANGES IN THE HEALTH SYSTEM OUR RESERVATIONS OR EVEN OUTRIGHT OBJECTIONS TO SOME PROVISIONS CANNOT GIVE US THE EXCUSE TO OPPOSE EVERYTHING HE SAID REP HENRY WAXMAN CHAIRMAN OF THE ENERGY AND COMMERCE HEALTH SUBCOMMITTEE SAID LATER I THINK THAT WAS THE REAL COUP FOR THE ADMINISTRATION TO HAVE THE FORMER SURGEON GENERAL ON BOARD AT THE SAME TIME WHITE HOUSE OFFICIALS DEFENDED THEIR ASSERTION THAT SAVINGS IN THE CURRENT HEALTH SYSTEM COULD PAY FOR MUCH OF THE EXPANDED COVERAGE THEY ENVISION SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY OVER THE WEEKEND LABELED THAT VIEW AS FANTASY IN AN ADDRESS TO THE NATIONAL ASSOCIATION OF MANUFACTURERS SENIOR PRESIDENTIAL ADVISER IRA MAGAZINER ASSERTED WE THINK THAT WE'RE GETTING AS GOOD NUMBERS AS YOU CAN GET WE KNOW THAT OUR NUMBERS BACK UP OUR POLICIES IN RESPONSE TO A QUESTION MR MAGAZINER SAID THE ADMINISTRATION IS STILL CONSIDERING WHETHER TO IMPOSE AN ANNUAL SURCHARGE ON LARGE COMPANIES THAT ELECT TO OFFER HEALTH COVERAGE TO THEIR WORKERS OUTSIDE OF THE REGIONAL ALLIANCES THAT WOULD BE ESTABLISHED BY THE CLINTON PLAN BUT HE ASSURED THE MANUFACTURERS THAT ANY SURCHARGE WOULD BE LESS THAN 1 OF PAYROLL THE MONEY HE INDICATED WOULD BE USED TO HELP SUPPORT CERTAIN AREAS OF HEALTH INFRASTRUCTURE THAT BENEFIT EVERYBODY WHO'S IN THE HEALTH SYSTEM SUCH AS ACADEMIC HEALTH CENTERS DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9309210057 930921 BUSINESS BRIEF DATA SWITCH CORP PRICE WARS CITED AS 1993 NET IS SEEN AT BELOW ESTIMATES DATA SWITCH CORP SAID IT EXPECTS 1993 EARNINGS TO BE LOWER THAN ANALYST ESTIMATES OF 31 MILLION OR 25 CENTS A SHARE PARTLY REFLECTING INTENSE PRICE COMPETITION DATA SWITCH WHICH STILL EXPECTS TO REPORT A PROFIT FOR 1993 REPORTED A LOSS OF 1 MILLION OR EIGHT CENTS A SHARE ON REVENUE OF 84 MILLION FOR THE YEAR ENDED DEC 31 1992 THE SHELTON CONN MAKER OF COMPUTERSWITCHING AND RELATED PRODUCTS SAID PROFIT MARGINS HAVE SUFFERED FROM EXCESSIVE DISCOUNTING IN THE MAINFRAMECOMPUTER MARKET BY COMPETITOR INTERNATIONAL BUSINESS MACHINES CORP DATA SWITCH SAID IT STILL EXPECTS TO MEET ANALYST ESTIMATES OF 100 MILLION IN SALES FOR THE YEAR WHILE INTERNATIONAL SALES WHICH ACCOUNT FOR A FIFTH OF TOTAL REVENUE HAVE BEEN PARTICULARLY SLOW DOMESTIC SALES ARE EXCEEDING EXPECTATIONS THE COMPANY SAID 9309210056 930921 WORLD MARKETS REPORTS OF IMMINENT INTEREST RATE CUT IN JAPAN FAIL TO BOOST TOKYO STOCKS LONDON PRICES SLIP A WALL STREET JOURNAL NEWS ROUNDUP TOKYO TOKYO STOCKS FELL FOR A FOURTH STRAIGHT SESSION MONDAY AMID DISAPPOINTMENT THAT SHARES COULDN'T REBOUND DESPITE REPORTS OF AN IMMINENT INTEREST RATE CUT IN LONDON STOCKS SLIPPED AS INVESTORS FELL JUST SHORT OF OFFSETTING THE CUMULATIVE EFFECT OF 20 COMPANIES GOING EXDIVIDEND IN FRANKFURT MEANWHILE PRICES SURGED 16 ON PERCEPTIONS THAT THE MARKET'S CONSOLIDATION HAS COME TO AN END WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11145 DOWN 059 REFLECTING DECREASES IN AMERICAN AND ASIA/PACIFIC MARKETS AND A RISE IN EUROPEAN MARKETS HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10654 UP 102 OR 1 WITH US HEALTHCARE OF THE US POSTING A 22 GAIN IN ITS LOCAL CURRENCY FOOTWEAR STOCKS TRAILED AT 8096 DOWN 193 OR 23 WITH NIKE OF THE US SLIDING 42 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 11111 POINTS FRIDAY DROPPED 12501 TO 2026603 ITS NINTH DECLINE IN THE PAST 10 SESSIONS ON TUESDAY THE NIKKEI RESPONDING TO THE DISCOUNTRATE CUT SURGED 24532 POINTS TO CLOSE THE MORNING SESSION AT 2051135 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN FROM 2938 MILLION SHARES FRIDAY LOSERS SWAMPED GAINERS 696288 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH FELL 575 FRIDAY DROPPED 1244 TO 163890 FUTURES BUYING SUPPORTED THE MARKET IN THE MORNING FOLLOWING A REPORT ON JAPAN'S NHK PUBLIC TELEVISION NETWORK THAT THE CENTRAL BANK WOULD CUT ITS DISCOUNT RATE BY 050POINT TO A HISTORIC LOW OF 2 BUYING WAS ALSO SPURRED BY EXPECTATIONS OF A TECHNICAL REBOUND FOLLOWING THE NIKKEI'S COMBINED 75707POINT PLUNGE OVER THE PREVIOUS THREE SESSIONS BUT THE NIKKEI EDGED UP LESS THAN 20 POINTS FROM ITS FRIDAY CLOSE AND INVESTORS BEGAN SELLING OUT OF DISAPPOINTMENT SELLING BY CORPORATIONS IN A BID TO CLEAN UP THEIR BOOKS AHEAD OF THE SEPT 30 CLOSE OF THE FISCAL FIRST HALF PUT FURTHER DOWNWARD PRESSURE ON THE MARKET MANY COMPANIES HAD HOPED TO SELL INTO A MARKET REBOUND INSPIRED BY THE RATE CUT NEWS BUT FINALLY LOWERED THEIR SIGHTS WHEN THAT REBOUND FAILED TO MATERIALIZE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX SHED 1 TO 30045 THE FT 30 INDEX LOST 27 TO 23283 VOLUME TOTALED 4433 MILLION SHARES COMPARED WITH 7664 MILLION THE PREVIOUS DAY STOCKS ARE USUALLY TRADED EXDIVIDEND OR WITHOUT THE DECLARED DIVIDEND FOUR TRADING DAYS BEFORE THE RECORD DATE THAT DETERMINES WHICH SHAREHOLDERS WILL RECEIVE THE PAYOUT STOCK TRADES ON THE EXDIVIDEND DATE GENERALLY ARE AT LOWER PRICES REFLECTING THE ABSENCE OF DIVIDEND RIGHTS TAKEN TOGETHER THE DIVIDEND PAYOUTS FROM THE 20 COMPANIES THAT WENT EXDIVIDEND YESTERDAY KNOCKED 1056 POINTS OFF THE FTSE 100 INDEX THAT ASIDE THE LONDON MARKET TURNED IN A SOLID PERFORMANCE ON A SLOW DAY THE FTSE 100 INDEX WENT THROUGH ITS QUARTERLY PROMOTION AND RELEGATION EXERCISES YESTERDAY WITH THREE COMPANIES BEING DROPPED FROM THE INDEX AND THREE OTHERS ADDED SIMPLE INCLUSION AND EXCLUSION OF COMPANIES CAN MOVE THE STOCKS' SHARE PRICES AS INDEX FUNDS ADJUST THEIR PORTFOLIOS YESTERDAY THE PROMOTED COMPANIES WHICH WERE EXPECTED TO GAIN FELL INSTEAD WHILE THOSE ISSUES DROPPED FROM THE INDEX GAINED IN FRANKFURT THE DAX 30STOCK INDEX OF BLUECHIPS LEAPT 3085 TO 191284 NEAR ITS HIGH FOR THE DAY THE MARKET CONSOLIDATION THAT CAUSED THE DAX TO FALL FROM ITS AUG 31 HIGH OF 194489 TO ABOUT 1850 POINTS LAST THURSDAY APPEARED TO HAVE ENDED THAT PERCEPTION WAS BOLSTERED BY SHORTCOVERING ON THE GERMAN FUTURES AND OPTIONS EXCHANGE FOLLOWING THE EXPIRATION OF MONTHLY AND QUARTERLY CONTRACTS FRIDAY MOST OTHER EUROPEAN MARKETS FINISHED HIGHER YESTERDAY IN PARIS PRICES ROSE SLIGHTLY THE MARKET REBOUNDED FROM EARLY WEAKNESS AS US INVESTORS ADOPTED A BULLISH STANCE IN ANTICIPATION OF INTEREST RATE CUTS IN GERMANY LATER THIS WEEK IN AMSTERDAM STOCKS CLOSED HIGHER ON OPTIONRELATED AND FOREIGN BUYING LATE IN THE SESSION A STRONG DOLLAR SUPPORTED SENTIMENT EARLIER IN THE DAY MILAN SHARES CLIMBED SLIGHTLY AT THE CLOSE OF TRADING DESPITE A LACK OF MARKETMOVING NEWS IN MADRID EQUITIES ADVANCED 14 SPURRED BY BUYING INTEREST FROM NEW YORK THE BOURSE WAS CHEERED BY THE BANK OF SPAIN'S DECISION YESTERDAY TO CUT THE CASH RESERVE REQUIREMENT FOR SPANISH BANKS TO 2 FROM 3 OF THEIR TOTAL DEPOSITS IN STOCKHOLM PRICES DECLINED IN MODERATE TO THIN TRADING AMID WORRIES ABOUT THE WEAK SWEDISH KRONA AND RISING DOMESTIC INTEREST RATES IN ZURICH STOCKS PUSHED 14 HIGHER IN MODERATE TRADING LED BY STRONG INTEREST IN BANKING AND INSURANCE ISSUES THE INSURANCE SECTOR WAS REVIVED BY A REPORT FRIDAY THAT ZURICH INSURANCE'S FIRSTHALF PREMIUM REVENUE JUMPED 146 TO 136 BILLION SWISS FRANCS 97 MILLION MOST ASIAN AND PACIFIC MARKETS WEAKENED IN SYDNEY STOCKS EASED IN THE ABSENCE OF MUCH MARKETMOVING NEWS THE ONLY NEWS DURING THE DAY WAS AN AUSTRALIAN SENATE COMMITTEE REPORT THAT SAID A KEY PIECE OF GOVERNMENT BUDGET LEGISLATION THE DEFICITCUTTING BILL FACES A REAL RISK OF BEING FOUND UNCONSTITUTIONAL THE AUSTRALIAN DOLLAR SANK AFTER THE REPORT CAME OUT BUT DEALERS DIFFERED ON WHETHER THE FALL IN THE CURRENCY HAD MUCH IMPACT ON STOCK PRICES IN SINGAPORE SHARES WEAKENED IN A BROAD CONSOLIDATION WHILE MALAYSIAN SPECULATIVE SHARES TRADED OVERTHECOUNTER FELL ON PROFITTAKING HONG KONG SHARES FELL MODERATELY AFTER SHRUGGING OFF EARLY JITTERS POLITICS DROVE THE SELLING AS WORRIES ABOUT THE SINOBRITISH CONFLICT CONCERNING THE COLONY'S CONSTITUTIONAL REFORMS ESCALATED DURING THE WEEKEND THE MARKET WAS CLOSED FRIDAY BECAUSE OF A TYPHOON IN SEOUL STOCKS JUMPED 13 AS A RAPPROCHEMENT APPEARED TO BE DEVELOPING BETWEEN PRESIDENT KIM YOUNG SAM AND CONGLOMERATE HYUNDAI GROUP MR KIM MET WITH HYUNDAI CHAIRMAN CHUNG SE YOUNG AND CALLED FOR HYUNDAI'S COOPERATION IN REVIVING THE NATION'S FLAGGING ECONOMY MR KIM AND HYUNDAI HAVE BEEN AT ODDS SINCE LAST YEAR'S PRESIDENTIAL ELECTION WHEN HYUNDAI FOUNDER CHUNG JU YOUNG RAN AGAINST MR KIM IN A THREEWAY RACE IN THE MEETING MR KIM EXPRESSED CONCERN ABOUT CHRONIC LABOR UNREST AT HYUNDAI AND CALLED FOR ACTIVE TECHNOLOGY AND CAPITAL INVESTMENT TO HELP SOUTH KOREA TO SHIFT TO A TRADE SURPLUS IN TAIWAN PRICES RETREATED IN HEAVY PROFITTAKING 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 9309210055 930921 MARKETING & MEDIA MARKETSCAN MICHELINA'S FROZEN ENTREES TRIP UP GIANTS BY RICHARD GIBSON JENO PAULUCCI IS PLOTTING TO ROCK THE FROZENFOOD BUSINESS ONCE MORE TWO YEARS AGO AT AN AGE WHEN MOST PEOPLE ARE RETIRED THE ENTREPRENEUR PULLED OFF THE IMPROBABLE WITH A SMALL SALES FORCE AND NO ADVERTISING BUDGET HE TOOK ON THE INDUSTRY'S GIANTS BY INTRODUCING A LINE OF FROZEN PASTA DISHES NAMED AFTER HIS MOTHER MICHELINA TODAY HE'S SELLING CLOSE TO 100 MILLION ANNUALLY NOW MR PAULUCCI 75 YEARS OLD IS LOADING HIS SABRELINER JET AND CALLING ON SUPERMARKETS ACROSS THE COUNTRY WITH BOXES OF ANOTHER UPSTART FROZEN CHINESE FOODS UNDER THE BRAND NAME YU SING NEXT YEAR HE PLANS TO DO THE SAME THING WITH A LINE OF MEXICAN FOODS TENTATIVELY CALLED CARLOS & MARIA'S THE NAME GIVES YOU A NICE FAMILY TOUCH MR PAULUCCI SAYS HIS PHENOMENAL SUCCESS WITH MICHELINA'S IT OUTSELLS CONAGRA INC'S ENTIRE HEALTHY CHOICE LINE IN THE ENTREE CATEGORY ON A UNIT BASIS IS TESTAMENT TO THE LITTLE GUY WITH THE RIGHT PRODUCT AND MARKETING PLAN HE EVEN MANAGED TO DO IT IN AN AREA WHERE BIG COMPANIES ARE MIRED IN A PROTRACTED MARKETING BATTLE MICHELINA'S INROADS ALSO SHOW THE POWER OF PRICING ITS ITEMS TYPICALLY SELL FOR ABOUT 1 SOMETIMES BELOW THAT JEWEL STORES AROUND CHICAGO RECENTLY FEATURED BOXES FOR AS LITTLE AS 69 CENTS COMPETITORS OFTEN COST TWICE AS MUCH OR MORE FOR THE 52 WEEKS ENDED JULY 4 INFORMATION RESOURCES INC'S INFOSCAN SUPERMARKET DATA SHOW MICHELINA'S WITH SALES OF NEARLY 94 MILLION UP 63 FROM A YEAR EARLIER AND UNIT SALES UP A LIKE PERCENTAGE STOUFFER FOODS CORP'S REDBOX AND LEAN CUISINE ENTREES LED THE 2 BILLION FROZENENTREES MARKET DURING THE PERIOD WITH A COMBINED 39 SHARE BUT THE INFOSCAN FIGURES SHOW REDBOX UNIT SALES OFF 25 KRAFT GENERAL FOOD'S BUDGET GOURMET FROZEN ENTREES LINE ALSO LOST GROUND WITH SALES SLIPPING 06 TO 2542 MILLION UP AGAINST THREE OF THE BIGGEST PLAYERS IN THE FOOD BUSINESS CONAGRA NESTLE SA'S STOUFFER UNIT AND PHILIP MORRIS COS' KRAFT UNIT MR PAULUCCI'S COMPANY LUIGINO'S INC IN MINNESOTA'S FAMED IRON RANGE IS FORCING THE OTHERS TO PLAY HIS GAME KRAFT RECENTLY ROLLED OUT A PASTAANDRICE EXTENSION OF ITS BUDGET GOURMET LINE WITH ITEMS PRICED AROUND 139 A SPOKESWOMAN ACKNOWLEDGES THAT THE ADDITIONS CALLED SPECIAL SELECTIONS CAME IN RESPONSE TO MICHELINA'S INROADS KRAFT ALSO IS SEEKING TO INVIGORATE ITS ENTIRE BUDGET GOURMET BRAND THROUGH HEAVY PROMOTIONS THAT EFFORT INCLUDES EXTENSIVE COUPONING INNOVATIVE INSTORE DISPLAYS IN WHICH PASSING CONSUMERS ACTIVATE AUDIO TAPE PITCHES AND OFFERS OF FREE TELEPHONE TIME FOR REPEAT PURCHASES DISCOUNT PRICING IS COMMON ON HEALTHY CHOICE ENTREES AS WELL ITS MACARONI AND CHEESE WHICH COMPETES WITH A MICHELINA'S OFFERING RECENTLY WAS MARKED DOWN TO 179 FROM 206 IN ONE DES MOINES IOWA SUPERMARKET A CONAGRA SPOKESWOMAN DECLINED TO COMMENT ON MICHELINA'S STOUFFER MEANWHILE LAUNCHED A LUNCH EXPRESS LINE OF ENTREES UNDER THE STOUFFER LABEL IN THE EAST AND THE LEAN CUISINE NAME IN THE WEST THE NESTLE UNIT ALSO IS BELIEVED TO BE BEEFING UP ITS ADVERTISING BUDGET FOR ENTREES WE'RE VERY COMMITTED TO CATEGORYBUILDING SAYS A STOUFFER SPOKESWOMAN WHO STRESSES THAT THE COMPANY'S RED BOX IS POSITIONED AS A PREMIUM BRAND AND THEREFORE ISN'T GOING HEAD TO HEAD WITH CHEAPER BRANDS LUNCH EXPRESS PRICED AROUND 189 IS AS CLOSE AS WE WILL COME TO ACKNOWLEDGING MICHELINA'S PRESENCE AS HIS COMPETITORS MAKE CHANGES MR PAULUCCI HAS AUGMENTED MICHELINA'S WITH SOME 30OUNCE FAMILYSIZED ENTREES THEY SELL FOR BETWEEN 199 AND 299 LUIGINO'S ALSO RECENTLY BROUGHT OUT AN INTERNATIONALS LINE EXTENSION TO MICHELINA'S WITH SWEDISH MEATBALLS AND A STROGANOFF THE COMPANY IS ADDING CAPACITY IN JACKSON OHIO PLANS TO EXPAND ITS DULUTH MINN PLANT AND IS NEGOTIATING OVER A POSSIBLE FACILITY IN IRELAND MR PAULUCCI SAYS MICHELINA'S ALREADY IS DISTRIBUTED IN PARTS OF EUROPE INCLUDING ITALY WHILE MR PAULUCCI HAS HIT SOME COMMERCIAL HOME RUNS BEFORE WHAT MAKES MICHELINA'S DOUBLY NOTABLE IS HIS DECISION NOT TO ADVERTISE THE PRODUCT BUT TO PUT HIS MONEY INSTEAD INTO TRADE PROMOTION THAT ALLOWS STORES TO FEATURE THE PRODUCTS IN THEIR ADS AND USE THEM AS INSTORE SPECIALS I HAVEN'T SPENT A PENNY ON MEDIA OR COUPONING HE SAYS ADDING THAT HE BET WORD OF MOUTH WOULD CARRY ME BUT NOW GIVEN THE BRAND'S RAPID SALES INCREASE HE WILL DO A TELEVISION ADVERTISING TEST IN THREE MARKETS SYRACUSE NY CINCINNATI AND SAN ANTONIO TEXAS TO SEE IF WE CAN DOUBLE OUR BUSINESS MR PAULUCCI GREW UP ON MINNESOTA'S ROUGHANDTUMBLE IRON RANGE HE RECALLS HIS MOTHER EXPRESSING SHOCK WHEN SHE LEARNED THAT HER SON THEN A FRUITSTAND BARKER PLANNED TO GO INTO CHINESE FOODS WE'RE ITALIAN' SHE WOULD SAY TO ME HE RECENTLY RECALLED I'D SAY 'MAMMA I'M MAKING MONEY NOT CHINESE FOOD SHE SAID OK' BUT WHEN I WENT INTO PIZZA SHE WAS A LOT MORE HAPPY STILL HIS VENTURE INTO CHINESE CUISINE RESULTED IN THE CHUN KING LINE OF CANNED AND FROZEN ITEMS WHICH MR PAULUCCI EVENTUALLY SOLD TO WHAT'S NOW RJR NABISCO HOLDING CORP HE RETURNED TO HIS ETHNIC ROOTS WITH JENO'S PIZZA ROLLS WHICH GRAND METROPOLITAN PLC'S PILLSBURY UNIT BOUGHT ALONG THE WAY HE ALSO CREATED WILDERNESSBRAND PIE FILLINGS AND A FEW BUSINESS FLOPS HE ADMITS AMONG THEM A PIZZA HOMEDELIVERY IN FLORIDA AND SEVERAL RESTAURANT VENTURES ALTHOUGH HIS NEW CHINESE LINE WON'T BE IN SUPERMARKET FROZENFOOD CASES UNTIL LATER THIS YEAR LUIGINO'S ALREADY IS FIELDING INQUIRIES ABOUT IT FROM OVERSEAS ONE BUSINESSMAN IN ASIA CALLED RECENTLY MR PAULUCCI SAYS I THOUGHT HE WANTED TO TALK PASTA NO HE WANTS EGG ROLLS JENO PAULUCCI'S BUDGETPRICED MICHELINA'S LINE OF FROZEN ENTREES IS STEALING MARKET SHARE FROM SUCH POWERFUL BRANDS AS BUDGET GOURMET AND STOUFFER'S REDBOX ENTREES 9309210054 930921 WHO'S NEWS ACX TECHNOLOGIES NAMES INTERIM HEAD OF ALUMINUM DIVISION DENVER ACX TECHNOLOGIES INC SAID JOE COORS JR 51 YEARS OLD HAS BEEN NAMED INTERIM PRESIDENT OF ITS GOLDEN ALUMINUM CO UNIT SUCCEEDING JOSEPH LAMB 49 MR LAMB RESIGNED BY MUTUAL AGREEMENT THE COMPANY SAID A SPOKESWOMAN SAID THE RESIGNATION WAS DUE TO A DIFFERENCE IN MANAGEMENT STYLES MORE THAN ANYTHING THE COMPANY WILL SEEK A PERMANENT REPLACEMENT THE RESIGNATION COMES AT AN INOPPORTUNE TIME FOR GOLDEN ALUMINUM WHICH RECENTLY COMPLETED AN ALUMINUM PRODUCTION PLANT IN SAN ANTONIO TEXAS IN A NEWS RELEASE MR COORS SAID THE COMPANY IS SEEKING NEW CUSTOMERS FOR ITS ALUMINUMCAN SHEET MADE FROM RECYCLED CANS UNDER CURRENT MANAGEMENT COORS BREWING CO A UNIT OF ADOLPH COORS CO IS ITS ONLY MAJOR CUSTOMER IN 1992 COORS SPUN OFF ACX TO SHAREHOLDERS A VERY STRONG AND EMPOWERED TEAM OF TECHNICAL AND BUSINESS MANAGERS IS IN PLACE AND FOCUSED ON THE STRATEGIES NECESSARY TO FULLY REALIZE THE POTENTIAL OF THE MINIMILL TECHNOLOGY WORLDWIDE MR COORS SAID MR LAMB COULDN'T BE REACHED LATE YESTERDAY MR COORS WILL REMAIN CHAIRMAN OF GOLDEN ALUMINUM AND A MEMBER OF THE OFFICE OF THE PRESIDENT OF ACX 9309210053 930921 INTERNATIONAL EC AND FRANCE STRIKE COMPROMISE OVER FARM TALKS BRUSSELS AP EUROPEAN COMMUNITY NATIONS STRUCK A COMPROMISE WITH FRANCE AND AGREED TO HOLD TALKS WITH THE US ABOUT A DISPUTED FARMSUBSIDY AGREEMENT BUT AFTER MORE THAN 12 HOURS OF TALKS THE MINISTERS REFUSED TO EMBRACE FRANCE'S DEMAND FOR A FORMAL RENEGOTIATION OF THE ACCORD WHICH WOULD SLASH SUBSIDIZED FARM EXPORTS THE DISPUTE OVER THE USEC FARM DEAL THREATENS TO DISRUPT THE URUGUAY ROUND OF WORLD TRADE TALKS AN AMBITIOUS EFFORT BY 116 NATIONS TO REVISE THE GLOBAL TRADING SYSTEM BRITISH FOREIGN SECRETARY DOUGLAS HURD SAID IT'S A DRAW BUT I HOPE A DRAW IN FAVOR OF A GATT AGREEMENT THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT IS SPONSORING THE WORLD TRADE NEGOTIATIONS IT'S A GOOD AGREEMENT FOR FRANCE SAID THE FRENCH FOREIGN MINISTER ALAIN JUPPE WE HAVE OBTAINED WHAT WE WANTED WE HAVE RESUMED DISCUSSIONS WITH OUR AMERICAN PARTNERS DURING THE TALKS MR JUPPE BACKED OFF FROM HIS INSISTENCE ON A RENEGOTIATION OF THE FARMSUBSIDY AGREEMENT HE STILL PRESSED THE OTHER MINISTERS HOWEVER TO PURSUE WITH WASHINGTON FRANCE'S CONCERNS THAT THE ACCORD WOULD UNFAIRLY HURT ITS ONE MILLION FARMERS THERE IS NO DISASTER THERE IS NO CRISIS SAID WILLY CLAES BELGIUM'S FOREIGN MINISTER WHO PRESIDED OVER THE SPECIAL MEETING OF ABOUT THREE DOZEN MINISTERS OF THE 12NATION TRADING BLOC BUT HE SAID EC TRADE NEGOTIATORS WILL UNDOUBTEDLY HAVE A LOT OF WORK TO DO THE US AND SOME EC NATIONS INCLUDING BRITAIN HAD WARNED THAT IF THE TRANSATLANTIC FARM DEAL UNRAVELS IT COULD RUIN YEARS OF TALKS TO OVERHAUL THE WORLD'S TRADING SYSTEM THAT IN TURN COULD PROLONG WORLD RECESSION MR HURD ALSO SAID THAT FRANCE'S HARD LINE COULD PROVOKE A CRISIS WITHIN THE COMMUNITY WHICH IS ALREADY SUFFERING FROM ECONOMIC RECESSION AND UPHEAVALS IN THE NATIONS' CURRENCIES I CANNOT CONCEIVE OF HOW THE EC COULD CONTINUE WITH A NORMAL TRANSACTION OF BUSINESS IF THE EC IS SEEN AS HAVING CAUSED THE COLLAPSE OF THE URUGUAY ROUND A SPOKESMAN QUOTED MR HURD AS TELLING THE CLOSEDDOOR MEETING THE URUGUAY ROUND TALKS LAUNCHED IN 1986 UNDER THE AUSPICES OF THE GATT HAVE BEEN DEADLOCKED FOR YEARS BECAUSE OF THE FARM DISPUTE THE USEC FARMTRADE DEAL WAS STRUCK TO END THAT DEADLOCK INCREASED TRADE UNDER A GATT ACCORD COULD PUMP 5 TRILLION INTO THE WORLD ECONOMY DURING THE NEXT DECADE GATT'S DIRECTORGENERAL PETER SUTHERLAND HAS SET A DEC 15 DEADLINE FOR COMPLETING THE TALKS 9309210052 930921 FINANCING BUSINESS DELTA QUEEN STEAMBOAT CO DELTA QUEEN STEAMBOAT CO NEW ORLEANS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF TWO MILLION COMMON SHARES DELTA QUEEN WHICH OWNS AND OPERATES TWO CRUISE LINES SAID IT HAS 113 MILLION COMMON SHARES OUTSTANDING PROCEEDS FROM THE OFFERING WILL BE USED TO FUND FUTURE CAPITAL REQUIREMENTS ASSOCIATED WITH A RECENT ACQUISITION AND FOR GENERAL CORPORATE PURPOSES MANAGING UNDERWRITERS ARE STEPHENS INC AND GENESIS MERCHANT GROUP SECURITIES 9309210051 930921 BUSINESS BRIEF REHABILITY CORP CONCERN SAYS 3RDPERIOD NET TO BE LOWER STOCK PLUNGES REHABILITY CORP SAID THIRDQUARTER NET INCOME WILL BE LOWER THAN EXPECTED AN ASSESSMENT THAT PUSHED THE COMPANY'S STOCK PRICE DOWN SHARPLY IN NATIONAL OVERTHECOUNTER TRADING SHARES OF THE BRENTWOOD TENN HEALTHCARE CONCERN FELL 275 TO 925 DOWN 350 IN HEAVY TRADING OF MORE THAN 580000 SHARES WALL STREET ANALYSTS HAVE BEEN PROJECTING THIRDQUARTER EARNINGS OF ABOUT 23 CENTS A SHARE FOR REHABILITY WHICH OPERATES 129 OUTPATIENT REHABILITATION CENTERS BUT THE COMPANY SAID NET WILL BE ABOUT FLAT WITH THE YEAREARLIER QUARTER OR BETWEEN 10 CENTS AND 12 CENTS A SHARE IN THE 1992 THIRD QUARTER REHABILITY'S PREDECESSOR COMPANY NATIONAL REHABILITATION CENTERS INC REPORTED EARNINGS OF 629000 OR 16 CENTS A SHARE ON REVENUE OF 94 MILLION IN JANUARY THE COMPANY COMPLETED A MERGER WITH HEALTHFOCUS INC AND IN MAY CHANGED ITS NAME TO REHABILITY CORP RESTATED EARNINGS FOR THE COMBINED COMPANIES FOR THE 1992 THIRD QUARTER WEREN'T AVAILABLE 9309210050 930921 INTERNATIONAL BRITAIN'S TINY LIBERAL DEMOCRAT PARTY GAINS CLOUT AT EXPENSE OF TORIES LABOR BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL TORQUAY ENGLAND BRITAIN'S MOST CHARISMATIC POLITICIAN IS THE LEADER OF A PARTY THAT MANY PEOPLE OUTSIDE THE UNITED KINGDOM HAVE NEVER HEARD OF AND THAT FEW PEOPLE INSIDE THE COUNTRY HERETOFORE HAVE TAKEN SERIOUSLY BUT WHY SHOULD THEY OF THE 651 SEATS IN THE HOUSE OF COMMONS PADDY ASHDOWN AND HIS LIBERAL DEMOCRATS HOLD 22 YET MEETING FOR THEIR ANNUAL PARTY CONFERENCE FOLLOWED NEXT WEEK BY THE LABOR CONFERENCE IN BRIGHTON AND THE WEEK AFTER THAT BY THE CONSERVATIVE CONFERENCE IN BLACKPOOL THE LIBERAL DEMOCRATS SUDDENLY FIND THEMSELVES THE HOTTEST PARTY IN BRITISH POLITICS WINNER OF THE LAST TWO NATIONAL BYELECTIONS AND A STEADY GAINER IN PARTY MEMBERSHIP LOCAL GOVERNMENT SEATS AND PUBLIC APPROVAL RATINGS THIS IS NOT A BUBBLE IN DANGER OF BURSTING BUT A STEP BY STEP EXPANSION OF OUR INFLUENCE SAYS MP ROBERT MACLENNAN HOME AFFAIRS SPOKESMAN FOR THE LIBERAL DEMOCRATS NO ONE EXPECTS THE LIBERAL DEMOCRATS TO WIN A NATIONAL ELECTION BUT THE PLUMMETING POPULARITY OF TORY CONSERVATISM AND LINGERING NERVOUSNESS ABOUT LABOR SOCIALISM COULD COMBINE TO KEEP BOTH PARTIES FROM WINNING A MAJORITY OF SEATS IN THE NEXT ELECTION IN THAT CASE THE MIDDLEOFTHEROAD LIBERAL DEMOCRATS COULD FORCE ONE OF THE TWO MAJOR PARTIES TO INCLUDE IT IN A COALITION GOVERNMENT ALTHOUGH SKEPTICS NOTE THAT THE LIBERAL DEMOCRATS HAVE SURGED PREVIOUSLY ONLY TO COLLAPSE BEFORE NATIONAL ELECTIONS MANY POLITICAL ANALYSTS BELIEVE IT'S DIFFERENT THIS TIME THE LIBERAL DEMOCRATS ARE IN A STRONGER POSITION TODAY THAN THEY'VE EVER BEEN BEFORE AND IT SHOWS EVERY SIGN OF LASTING SAYS PATRICK SEYD A LECTURER IN POLITICS AT SHEFFIELD UNIVERSITY BOLSTERING THIS BELIEF POLLS SHOW THAT 25 OF BRITONS WOULD VOTE LIBERAL DEMOCRAT IN A NATIONAL ELECTION UP FROM 18 IN THE LATEST ELECTION IN APRIL OF LAST YEAR MOREOVER SINCE 1983 THE PARTY HAS NEARLY DOUBLED THE NUMBER OF ITS MEMBERS SERVING AS LOCAL GOVERNMENT COUNCILORS SUPPORTERS SAY THE LIBERAL DEMOCRATS COMBINE TORY MANAGERIAL EXPERTISE WITH LABOR COMPASSION FOR THE UNDERPRIVILEGED WHILE ESCHEWING WHAT IS PERCEIVED AS THE WORST TRAITS OF THOSE PARTIES TORY PATRONAGE AND ELITISM LABOR LACK OF INITIATIVE THE LIBERAL DEMOCRATS PROCLAIMS MR ASHDOWN ARE ON THE VERGE OF A BREAKTHROUGH INTO THE BIG TIME SHOWING SOME HUBRIS HE ADDS THAT HIS GOAL IN POLITICS IS TO BE PRIME MINISTER EVEN IF THE CURRENT POPULARITY SURGE CONTINUES IN NATIONAL ELECTIONS MANY VOTES SECURED BY LIBERAL DEMOCRATS FAIL TO TRANSLATE INTO SEATS IN THE COMMONS THAT IS BECAUSE BRITAIN HAS A WINNERTAKEALL CONSTITUENCY SYSTEM THE LIBERAL DEMOCRATS WON ONLY 3 OF THE SEATS IN 1992 FOR EXAMPLE EVEN THOUGH THEY GOT 18 OF THE VOTE IN THE FIRST MAJOR SPEECH OF THE GATHERING PARTY PRESIDENT CHARLES KENNEDY OUTLINED THE MAJOR CHALLENGE FACING THE PARTY IS IT REALLY GOING TO BE OH SO DIFFERENT THIS TIME OR HE ASKED ARE THE LIBERAL DEMOCRATS AGAIN GOING TO SETTLE FOR THE CHEERS TODAY TEARS TOMORROW SCHOOL OF POLITICS EVEN THE MOST OPTIMISTIC LIBERAL DEMOCRATS FORESEE THE PARTY WINNING NO MORE THAN 60 SEATS IN THE NEXT NATIONAL ELECTION BUT THAT WOULD PROBABLY BE SUFFICIENT TO FORCE ONE OF THE OTHER PARTIES TO INCLUDE IT IN A COALITION GOVERNMENT AND THE LIBERAL DEMOCRATS ARE SURE TO MAKE ELECTORAL REFORM A KEY CONDITION OF ANY SUCH ALLIANCE A CHANGE IN THE SYSTEM MIGHT ENABLE THE LIBERAL DEMOCRATS TO INCREASE THEIR PRESENCE IN PARLIAMENT AND PERHAPS EVEN GAIN CONTROL OF IT ALTHOUGH THAT EVENTUALITY IS TOO REMOTE FOR MOST POLITICAL ANALYSTS EVEN TO CONTEMPLATE MR ASHDOWN IS DETERMINED TO CHANGE THAT HE IS SCORING MARKEDLY HIGHER IN THE POLLS THESE DAYS THAN EITHER LABOR PARTY LEADER JOHN SMITH OR PRIME MINISTER JOHN MAJOR OF THE RULING TORY PARTY MR ASHDOWN IS A FORMER OFFICER OF THE ROYAL MARINES WHO OBTAINED A DEGREE IN MANDARIN CHINESE AT THE UNIVERSITY OF HONG KONG HE HAS LIVED IN BELFAST INDIA GENEVA AND THE JUNGLES OF BORNEO WHICH BOLSTERS HIS IMAGE HERE AS AN INTELLECTUAL ADVENTURER HE'S 52 YEARS OLD AND A FITNESS FANATIC MR ASHDOWN PORTRAYS HIMSELF AS AN OUTSIDER THIS IS CRUCIAL AT A TIME WHEN BRITONS WEARY OF RECESSION GROWING CRIME AND UNINSPIRED LEADERSHIP FROM MR MAJOR ARE FEELING HOSTILE TOWARD POLITICIANS WHAT HELPS MR ASHDOWN AND THE LIBERAL DEMOCRATS IS THAT WHILE PEOPLE HERE HAVE ALWAYS HAD A CERTAIN AMOUNT OF CONTEMPT FOR POLITICIANS NOW THEY HATE THEM SAYS LORD STODDARD OF SWINDON A FORMER MP AND NOW A LABOR MEMBER OF THE HOUSE OF LORDS THAT'S A PROBLEM FOR THE TORY AND LABOR PARTIES THE TORY GOVERNMENT'S PROBLEMS A SLUGGISH ECONOMY AND UTTER LACK OF PARTY UNITY ARE SPLASHED DAILY ACROSS THE FRONT PAGES HERE BUT LABOR HAS FAILED TO EXPLOIT THE TORY PARTY'S TROUBLES FOR INSTANCE ALTHOUGH TORY SUPPORT IS WEAKENING IN ITS BIGGEST STRONGHOLD THE SOUTH OF ENGLAND LABOR HAS BEEN UNSUCCESSFUL IN PICKING UP MANY VOTES THERE WITH THE SWING VOTES MAINLY GOING TO THE LIBERAL DEMOCRATS NATIONWIDE TORY TROUBLES HAVE HELPED LABOR IN THE POLLS NOW 45 OF BRITONS SAY THEY WOULD VOTE LABOR COMPARED WITH THE 35 WHO ACTUALLY DID IN THE LAST ELECTION BUT THERE IS A RELUCTANCE AMONG LABOR LEADERS TO TAKE MUCH HEART FROM POLLS BECAUSE ONLY DAYS BEFORE THAT ELECTION THEY HAD A NARROW LEAD IN THE POLLS THAT THE PROBLEMS OF THE TWO MAJOR PARTIES REPRESENT AN OPPORTUNITY FOR THE LIBERAL DEMOCRATS WAS ILLUSTRATED IN A BYELECTION IN LATE JULY IN THE CONSTITUENCY OF CHRISTCHURCH ONLY 12 MONTHS AFTER THESE VOTERS ELECTED A CONSERVATIVE BY A MARGIN OF 23000 CONTINUING A STRING OF TORY VICTORIES THERE THAT DATED BACK TO 1906 THE DEATH OF THAT MP PROMPTED A BYELECTION THAT THE LIBERAL DEMOCRATS WON BY 16000 VOTES REPRESENTING THE LARGEST SWING AGAINST A SITTING BRITISH GOVERNMENT SINCE 1945 9309210049 930921 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ARIZONA PUBLIC SERVICE CO 100 MILLION OF FIRSTMORTGAGE BONDS DUE SEPT 15 2000 PRICED AS 575S AT 99884 TO YIELD 577 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF MEDIUMTERM NOTES DUE SEPT 28 1998 PRICED AT PAR TO YIELD 498 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MBNA CORP 100 MILLION OF SENIOR MEDIUMTERM NOTES DUE OCT 1 2003 PRICED AS 615S AT 99953 TO YIELD 6158 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO MOTOROLA INC 281 MILLION PROCEEDS OF LIQUID YIELD OPTION NOTES DUE SEPT 27 3013 PRICED AS 63923S TO YIELD 225 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE CONVERTIBLE INTO COMMON AT 114375 A 22 PREMIUM RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO STUDENT LOAN MARKETING ASSOCIATION 600 MILLION OF FLOATINGRATE NOTES DUE SEPT 28 1998 PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL PAY QUARTERLY AND FLOAT WEEKLY AT 19 BASIS POINTS OVER THE 91DAY TREASURYBILL RATE THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT PAR COBRA GOLF INC INITIAL OFFERING OF 33 MILLION COMMON SHARES PRICED AT 21 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC AURORA COLO 1147 MILLION SERIES 1993 WATER REFUNDING UNLIMITEDTAX BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE NET INTEREST COST AT 4737 YIELDS FOR REOFFERED BONDS RANGE FROM 275 IN 1994 TO 49 IN 2008 MOODY'S RATED THE ISSUE SINGLEA1 AND S&P ASSIGNED A DOUBLEAMINUS RATING KENTUCKY HIGHER EDUCATION STUDENT LOAN CORP 1404 MILLION STUDENTLOAN REVENUE BONDS PRICED BY A PAINEWEBBER INC GROUP INCLUDED IN THE ISSUE 348 MILLION 1993 SERIES A BONDS PRICED TO YIELD FROM 36 IN 1995 TO 47 IN 2000 90 MILLION 1993 SERIES B BONDS PRICED TO YIELD FROM 49 IN 2001 TO 53 IN 2005 AND 156 MILLION 1993 SERIES C BONDS PRICED TO YIELD FROM 375 IN 1995 TO 505 IN 2002 THE SERIES B BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX BUT THE SERIES A AND SERIES C BONDS AREN'T MOODY'S RATED THE BONDS SINGLEA1 AND S&P ASSIGNED A DOUBLEAMINUS RATING SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY 1037 MILLLION SERIES 1993B POWERSUPPLYSYSTEM REVENUE BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 27 IN 1994 TO 523 IN 2013 MOODY'S RATED THE ISSUE SINGLEA1 AND S&P ASSIGNED A SINGLEAPLUS RATING ALL NIPON AIRWAYS JAPAN TWO EUROBOND ISSUES THE FIRST FOR 10 BILLION YEN OF 44 EUROBONDS DUE DEC 29 2000 AT ISSUE PRICE 1018 VIA LEAD UNDERWRITER NIKKO EUROPE LTD REOFFERED AT 100225 FEES 1875 THERE IS A SHORT FIRST COUPON SECOND ISSUE IS FOR 30 BILLION YEN OF 45 EUROBONDS DUE SEPT 28 2001 AT ISSUE PRICE 10195 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 100275 TO YIELD 4458 FEES TWO THERE ARE TWO SHORT COUPONS BANCO DE BOSTON SA BRAZIL 70 MILLION OF 8 EUROBONDS DUE OCT 11 2001 AT ISSUE AND FIXED REOFFER PRICE 99947 VIA SALOMON BROTHERS INTERNATIONAL LTD AT REOFFER PRICE BONDS YIELD A MARGIN OF 383 BASIS POINTS ABOVE THREEYEAR TREASURY THERE IS A CALL AND PUT OPTION EXERCISEABLE ON OCT 11 1996 COMMERCIAL GUARANTEE FROM FIRST NATIONAL BANK OF BOSTON FEES ONE CAISSE NATIONALE DES AUTOROUTES FRENCH AGENCY 26 BILLION FRENCH FRANCS OF 625 EUROBONDS DUE OCT 20 2005 AT ISSUE PRICE 9934 VIA CREDIT LYONNAIS REOFFERED AT 9934 TO YIELD 633 A SPREAD OF 18 BASIS POINTS ABOVE FRENCH GOVERNMENT'S 825 NOTE OF 2004 FEES 035 HAMBURGISCHE LANDESBANK GERMANY 150 MILLION MARKS OF 625 SUBORDINATED EUROBONDS DUE OCT 21 2003 AT ISSUE PRICE OF 10175 VIA TRINKAUS & BURKHARDT KGAA AT COMANAGERS' BREAKEVEN PRICE 99375 BONDS YIELD 6336 HOLDER HAS RIGHT TO CONVERT BONDS ON OCT 21 1996 AND OCT 21 1997 INTO SUBORDINATED FLOATINGRATE EURONOTES TO MATURE OCT 21 2008 AND PAY INTEREST AT FIVE BASIS POINTS ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 25 INCLUDING 0125 FOR LEAD MANAGER NATIONAL AUSTRALIA BANK LTD AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 65 EUROBONDS DUE NOV 9 1998 AT ISSUE PRICE 10154 VIA LEAD UNDERWRITER BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 996 TO YIELD 6597 A MARGIN OF 29 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND FEES TWO NORDIC INVESTMENT BANK SUPRANATIONAL 200 MILLION OF 4375 EUROBONDS DUE OCT 18 1996 AT ISSUE AND FIXED REOFFER PRICE 9979 VIA MITSUBISHI FINANCE INTERNATIONAL PLC AT REOFFERED PRICE BONDS YIELD 4451 A MARGIN OF 22 BASIS POINTS OVER COMPARABLE TREASURY FEES 01875 PORTUGAL SOVEREIGN 1 BILLION OF GLOBAL BONDS DUE OCT 8 2003 PRICED AS 576S AT 9935 TO YIELD 5837 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND IBJ INTERNATIONAL PLC FEES 035 INTEREST PAID SEMIANNUALLY RABOBANK NEDERLAND NETHERLANDS 500 MILLION DUTCH GUILDERS OF 6125 EUROBONDS FOR OWN ACCOUNT DUE OCT 15 2002 AT ISSUE PRICE 10085 REOFFERED AT FIXED PRICE 1001 TO YIELD 611 A MARGIN OF 17 BASIS POINTS ABOVE BENCHMARK 875 DUTCH TREASURY DUE 2001 FEES ONE SWEDBANK SWEDEN 150 MILLION OF UNDATED SUBORDINATED FLOATINGRATE NOTES PRICED AT 99375 VIA JP MORGAN CO FOR FIRST FIVE YEARS COUPON IS SIXMONTH LIBOR PLUS 175 BASIS POINTS AND THEREAFTER SIXMONTH LIBOR PLUS 340 BASIS POINTS CALLABLE AFTER FIVE YEARS AND EACH YEAR THEREAFTER FEES 05 SWEDEN SOVEREIGN 500 MILLION ECUS OF 575 EURONOTES DUE OCT 5 1998 AT ISSUE PRICE 100485 REOFFERED AT 9886 VIA PARIBAS CAPITAL MARKETS LTD NOTES YIELD EIGHT BASIS POINTS LESS 725 BONS A TAUX FIXE ET INTEREST ANNUEL FEES 1875 TORONTODOMINION BANK CANADIAN PARENT 100 MILLION CANADIAN DOLLARS OF COLLARED FLOATINGRATE EURONOTES DUE OCT 15 2003 VIA KIDDER PEABODY INTERNATIONAL SUBORDINATED DEBT CARRIES COUPON OF THREEMONTH CANADIAN BANKERS' ACCEPTANCE RATE LESS 30 BASIS POINTS WITH MINIMUM COUPON 65 AND MAXIMUM 9 REOFFERED 995 FEES 05 9309210048 930921 BUSINESS BRIEFS ARDEN GROUP INC'S TELAUTOGRAPH CORP COMPLETED THE SALE OF ITS OMINIFAX FACSIMILE EQUIPMENT BUSINESS TO DANKA INDUSTRIES INC A UNIT OF DANKA BUSINESS SYSTEMS PLC FOR 365 MILLION PHILLIPS & JACOBS INC AGREED TO ACQUIRE JETCOM INC THE LARGEST GRAPHIC ARTS DEALER IN THE CINCINNATI AREA FOR AN UNDISCLOSED AMOUNT OF CASH AND STOCK MOTOROLA INC SAID IT ACQUIRED INDALA CORP OF SAN JOSE CALIF A PRIVATELY HELD MANUFACTURER OF RADIO FREQUENCY IDENTIFICATION CARDS TAGS AND READERS TERMS WEREN'T DISCLOSED DELTA AIR LINES AND AIR NEW ZEALAND LTD WILL STUDY HOW TO FORGE A CLOSER COMMERCIAL RELATIONSHIP WITH AN AIM TOWARD STRENGTHENING COOPERATION IN OPERATIONS AND MARKETING DELTA HAS SUCH AGREEMENTS WITH AEROMEXICO SWISSAIR SABENA VARIG AND AEROFLOT HAMILTON BANCORP INC NEW YORK COMPLETED REPURCHASE OF 5 OF ITS COMMON STOCK OR 201250 SHARES 9309210047 930921 MARSHALL NO 2 WISCONSIN BANK TO ACQUIRE NO3 VALLEY BANCORP OF APPLETON AGREES TO SALE FOR STOCK VALUED AT 805 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN ANOTHER MAJOR BANKING INDUSTRY CONSOLIDATION WISCONSIN'S SECOND LARGEST BANK HOLDING COMPANY AGREED TO ACQUIRE THE STATE'S THIRDRANKING INSTITUTION FOR STOCK VALUED AT ABOUT 805 MILLION IF COMPLETED THE PROPOSED ACQUISITION OF VALLEY BANCORP OF APPLETON BY MARSHALL & ILSLEY CORP OF MILWAUKEE FOR STOCK CURRENTLY VALUED AT 3741 A SHARE WOULD GIVE M&I THE LARGEST BANKING MARKET SHARE IN THE STATE FIRSTAR CORP OF MILWAUKEE WOULD REMAIN LARGER IN TERMS OF ASSETS BUT MANY OF THOSE ARE OUTSIDE WISCONSIN VALLEY'S AGREEMENT TO BE ACQUIRED DIDN'T COME AS MUCH OF A SURPRISE ALTHOUGH THE IDENTITY OF ITS SUITOR HAD BEEN A QUESTION MARK WITH ASSETS OF ABOUT 43 BILLION AND 150 BRANCHES IT HAS BEEN SEEN FOR SOME TIME AS A PROMISING ACQUISITION CANDIDATE VALLEY HAS THE STATE'S BIGGEST BANKING FRANCHISE OUTSIDE OF MILWAUKEE AIDED BY WISCONSIN'S STURDY ECONOMY VALLEY'S CREDIT QUALITY IS CONSIDERED STRONG IN RECENT YEARS IT HAS GROWN THROUGH MODEST INSTATE ACQUISITIONS IT HAS ALSO SUCCESSFULLY PRESSED COSTCUTTING MEASURES DESIGNED TO LOWER EXPENSE RATIOS THAT HAD EARLIER BEEN HIGHER THAN INDUSTRY NORMS ON THURSDAY AFTER ITS SHARES HAD SPURTED UP 5 APIECE TO 3775 A SHARE VALLEY DISCLOSED THAT IT WAS IN TALKS ABOUT A POSSIBLE COMBINATION WITH A PARTY IT DIDN'T NAME CONSERVATIVELY RUN MARSHALL & ILSLEY WITH 78 BILLION IN ASSETS AND A BALANCE SHEET THAT HAS BEEN DESCRIBED AS PRISTINE HAS BENEFITED FROM ITS OPERATION OF THE NATION'S FIFTHLARGEST FINANCIAL DATAPROCESSING BUSINESS WHILE MOST OTHER BIG BANKS HAVE PULLED OUT OF SUCH CONTRACT ACTIVITIES M&I HAS DERIVED HEFTY PROFITS FROM THAT FASTGROWING SEGMENT SALES LAST YEAR WERE 1512 MILLION YIELDING OPERATING PROFIT OF 202 MILLION WITH THAT RELATIVELY LOWASSET OPERATION GENERATING SUCH A QUANTITY OF REVENUE M&I'S RETURN ON AVERAGE ASSETS THROUGH THE FIRST SIX MONTHS WAS A POWERFUL 166 AFTER THE HISTORICALLY CLOSEMOUTHED COMPANY EARLIER THIS YEAR DISCLOSED FOR THE FIRST TIME JUST HOW PROFITABLE IS ITS DATAPROCESSING OPERATION M&I SHARES ROSE SUBSTANTIALLY AS INVESTORS APPLIED A HIGHER MULTIPLE TO ITS STOCK THAT INCREASE HAS GIVEN A SOLID BOOST TO M&I'S PURCHASING POWER IN MAKING STOCK ACQUISITIONS WITH THE EXCEPTION OF A BANK IN ARIZONA ACQUIRED IN 1986 M&I'S ASSETS ARE ENTIRELY IN ITS HOME STATE IN NATIONAL OVERTHECOUNTER TRADING M&I SHARES SLIPPED 125 OR 54 YESTERDAY TO CLOSE AT 2175 AT THAT PRICE THE EXCHANGE RATIO WOULD PROVIDE VALLEY HOLDERS WITH STOCK VALUED AT 3741 A SHARE FOR THEIR HOLDINGS THE PRICE IS ABOUT 22 TIMES VALLEY'S JUNE 30 BOOK VALUE OF 1688 A SHARE THAT PREMIUM IS A RICH ONE BY INDUSTRY STANDARDS BUT A ROBERT W BAIRD ANALYST MICHAEL MILUNOVICH CALLED IT A WELL PLANNED AND EXECUTED DEAL THAT GIVES M&I A DOMINANT MARKET POSITION IN WISCONSIN AS WELL AS ACCESS TO CERTAIN FASTGROWING REGIONS IN THE STATE WHERE ITS PRESENCE HAS BEEN LIMITED WHILE M&I TOO CALLED THE COMBINATION A SUPERB STRATEGIC FIT VALLEY SHARES FELL 1 OR 28 TO CLOSE AT 3475 IN NATIONAL OTC TRADING CLOSING OF THE DEAL SUBJECT TO APPROVAL BY REGULATORS AND BY VALLEY STOCKHOLDERS ISN'T EXPECTED UNTIL THE SECOND QUARTER OF NEXT YEAR WHILE A DELAY OF THAT LENGTH IS FAR FROM EXCEPTIONAL IN THE BANKING INDUSTRY SUCH A LONG HORIZON TENDS IN THE INTERIM TO HOLD THE TARGET COMPANY'S SHARE PRICE SIGNFICANTLY BELOW THE SUITOR'S BID UNDER TERMS OF THE AGREEMENT M&I GETS THE RIGHT TO ACQUIRE A 199 VALLEY STAKE UNDER CERTAIN CIRCUMSTANCES SUCH LOCKOUT MEASURES DESIGNED TO PREVENT THE APPEARANCE OF A RIVAL BID ARE COMMONPLACE IN FRIENDLY ACQISITIONS THE TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS THE ACQUISITION WILL BE DILUTIVE OF EARNINGS IN 1994 M&I SAID BUT IT SAID IT EXPECTS THE EFFICIENCIES THE COMBINATION PROMISES TO PROVIDE WILL INCREASE PERSHARE EARNINGS IN 1995 A M&I OFFICIAL SAID THAT THE BANKING CONCERN HASN'T ANY IMMEDIATE PLANS FOR FURTHER ACQUISITIONS HE ALSO SAID THE COMPANY HAS NO PLANS TO RESTRICT ITSELF TO INSTATE ACQUISITIONS THE COMBINED COMPANY WOULD HAVE 280 BRANCHES 9309210046 930921 RETAILING FURRIERS HUSTLE TO KEEP SALES WARM BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL HEARTENED BY A COMEBACK SEASON LAST YEAR AMERICAN FUR RETAILERS RANCHERS MANUFACTURERS AND TRADE GROUPS HAVE JOINED FORCES TO FINANCE AN ADVERTISING CAMPAIGN TO KEEP THE MOMENTUM GOING ECONOMIC UNCERTAINTY AND WRATHFUL ANIMALRIGHTS PROTESTS MAY HAVE SULLIED FUR'S ONCEOPULENT IMAGE BUT THE INDUSTRY'S NEW MEDIA OFFENSIVE IS AIMED AT RESURRECTING FUR AS A SYMBOL OF LUXURY A MORETHAN1 MILLION CAMPAIGN WHICH USHERS IN THE CRITICAL FALL SELLING SEASON COMES JUST AS THE INDUSTRY IS CLIMBING OUT OF A DEEP TROUGH US FUR SALES PEAKED IN 1987 AT ABOUT 18 BILLION BUT A GLUT OF PELTS ON THE INTERNATIONAL MARKET SAVAGE PRICE WARS AT HOME AND THE AUSTERITY OF SHOPPERS SENT SALES TUMBLING TO JUST 1 BILLION BY 1991 BESET BY LARGE INVENTORIES AND RAMPANT DISCOUNTING MANY RETAILERS AND MANUFACTURERS HAD LOSSES AND SOME WENT OUT OF BUSINESS NOW A TURNAROUND IS IN SIGHT LAST YEAR'S COLD WINTER HELPED BOOST 1992 SALES ABOUT 10 TO AN ESTIMATED 11 BILLION ACCORDING TO THE FUR INFORMATION COUNCIL OF AMERICA THERE ARE REASONS FOR OPTIMISM TOPTIER DESIGNER DONNA KARAN PUT FUR BACK IN HER FALL COLLECTION FOR SOME EXCLUSIVE STORES AFTER DROPPING IT FOR A SEASON DEPARTMENT STORES THAT CLOSED DOWN THEIR FUR SALONS DURING THE RECESSION SUCH AS NORDSTROM'S OAKBROOK CENTER MALL STORE OUTSIDE CHICAGO HAVE REOPENED THEM THIS YEAR AND STORES THAT STEADFASTLY CLUNG TO THEIR FUR FETISHES SUCH AS NEIMAN MARCUS REPORT FRESH INTEREST AMONG SHOPPERS THE GLITZY RETAILER'S CHRISTMAS CATALOG UNABASHEDLY FEATURES A ONEOFAKIND 50000 CHINCHILLA COAT THOUGH NEIMAN MARCUS ALSO CARRIES SPORTY FUR JACKETS STARTING AT 1500 FURRIERS WHO MANAGED TO SURVIVE THE SHAKEOUT ARE MAKING MONEY AGAIN EVANS INC CHICAGO THE LARGEST US FURRIER AND THE LAST REMAINING PUBLICLY TRADED FUR RETAILER MADE A PROFIT FOR THE FIRST TIME IN SIX YEARS IN FISCAL 1993 J MENDEL AT ELIZABETH ARDEN ON NEW YORK'S FIFTH AVENUE SAW ITS SALES DOUBLE LAST WINTER AS WOMEN SNAPPED UP CLASSIC FULLLENGTH FUR COATS THE INDUSTRY PEAKED AND CRASHED AND THAT HURT SAYS SAMUEL B GARBER EVANS VICE PRESIDENT SECRETARY AND GENERAL COUNSEL BUT IT IS QUITE VIABLE AGAIN WITH PELT SUPPLIES NOW TIGHTENING FUR PRICES ARE ON THE RISE THIS YEAR THE AVERAGE PRICE FOR A PELT IS 25 UP 13 FROM 1992 SO DURING THE PEAK OCTOBERTHROUGHDECEMBER SEASON SHOPPERS WILL PAY MORE FOR FUR NONETHELESS FURRIERS WORRY THAT PRESIDENT CLINTON'S NEW TAX PLAN COULD STALL THEIR COMEBACK THOUGH THE TAX PACKAGE REPEALED AN UNPOPULAR TAX ON LUXURY GOODS FURRIERS BELIEVE SOME OF THEIR PRIME CUSTOMERS WILL FORGO PURCHASES IN ANTICIPATION OF A BIGGER TAX BILL FOR THIS YEAR UNDER THE PLAN PEOPLE EARNING MORE THAN 200000 ANNUALLY WILL PAY AN AVERAGE OF 174 MORE IN TAXES AND THE HIGHER RATES ARE RETROACTIVE TO JAN 1 AFTER PASSAGE OF THE TAX PACKAGE LAST AUGUST SALES SLOWED A BIT SAYS EVANS'S MR GARBER PEOPLE ARE CONCERNED HOW THEY WILL COME OUT NEXT APRIL 15 ON ONE POINT INDUSTRY LEADERS ARE ADAMANT THE IMPACT OF THE ANTIFUR ACTIVISTS HAS BEEN VASTLY OVERBLOWN ARGUING THAT THE PROTESTERS' MESSAGE HAS LOST ITS PUNCH FURRIERS INSIST THAT THEIR LEAN YEARS HAD LITTLE TO DO WITH THE ANTIFUR CAMPAIGN IN FACT THEY CONTEND THE ACTIVISTS' MILITANCE BACKFIRED WITH MAINSTREAM AMERICA PARTICULARLY WELLHEELED FUR CUSTOMERS THE FUR COUNCIL SAYS ITS RESEARCH SHOWS THAT FUR SALES REFLECT THE STATE OF THE ECONOMY AND THAT ANIMAL ACTIVISTS ARE NOT A SIGNIFICANT FACTOR SIGNIFICANTLY THE TELEVISION AND MAGAZINE ADS MAKE NO MENTION OF THE HEAT THE INDUSTRY HAS TAKEN FROM ANIMALRIGHTS GROUPS IN RECENT YEARS BUT FURRIERS ARE KIDDING THEMSELVES IF THEY THINK ANTIFUR FORCES HAVE CONCEDED THE BATTLE THIS FALL ANIMALRIGHTS GROUPS LED BY PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS OR PETA PROMISE MORE ELABORATE GUERRILLA ACTIONS THAN IN THE PAST THE ANNUAL FURFREE FRIDAY PROTESTS ON NEW YORK'S FIFTH AVENUE THE DAY AFTER THANKSGIVING WILL BE AUGMENTED THIS YEAR BY A CELEBRITYSTUDDED PARADE THROUGH THE CITY'S FUR DISTRICT PETA PLANS A MASSTRANSIT AD CAMPAIGN IN NEW YORK AND OTHER CITIES AS WELL AS SPEAKOUTS IN WHICH FUR WEARERS ARE CONFRONTED ON THE STREET WITH THE MESSAGE THERE IS NO EXCUSE FOR WEARING FUR THE NEW FUR INDUSTRY AD CAMPAIGN CREATED BY STEVE GOLD INC IN NEW YORK SEEKS TO REVIVE FUR'S EXCLUSIVE CACHET PRINT ADS IN VOGUE AND HARPER'S BAZAAR SHOW FURSWATHED MODELS ON A BEACH WITH THE COPY LINE THE WAY IT REVEALS THE WAY IT EMPOWERS THE WAY IT EMBRACES FUR MORE THAN ANY OTHER FABRIC THESE ADS WILL SAY FUR IS A GARMENT NOT FOR EVERYONE SAYS STEVE GOLD HEAD OF THE AGENCY AS FUR RETURNS UPMARKET IT IS ACQUIRING A NEW LOOK WITH NEW CUTTING AND DYEING TECHNIQUES MANUFACTURERS NOW CAN CHANGE THE LOOK AND FEEL OF FUR TREATING IT MORE LIKE A FABRIC FUR NEEDS TO LOOK LIKE FASHION INSTEAD OF JUST LOOKING LIKE FUR SAYS KIM MAJOR CREATIVE DIRECTOR FOR NEW YORKBASED BIRGER CHRISTENSEN USA WHICH MAKES FURS FOR PERRY ELLIS DONNA KARAN AND CHRISTIAN DIOR FUR HAS BECOME A FASHION INDUSTRY WHICH IS BETTER FOR THE FUTURE OF THE INDUSTRY 9309210045 930921 BWIP IS TO REPORT THIRDQUARTER NET BELOW EXPECTATIONS LONG BEACH CALIF BWIP HOLDING INC SAID IT WILL REPORT LOWER THIRDQUARTER NET INCOME THAN IT PROJECTED AND THAT NET INCOME FOR THE YEAR WILL FALL BELOW ANALYSTS' ESTIMATES BWIP STOCK FELL FOLLOWING THE ANNOUNCEMENT DECLINING 2 SHARE OR 75 TO CLOSE AT 2450 IN NATIONAL OVERTHECOUNTER TRADING THE MAKER OF INDUSTRIAL PUMPS AND FLUIDCONTROL EQUIPMENT SAID EARLIER THAT EACH QUARTER'S EARNINGS THIS YEAR WOULD BE HIGHER THAN THE PRECEDING QUARTER A COMPANY SPOKESMAN SAID ANALYSTS' CONSENSUS FORECASTS FOR NET INCOME THIS YEAR ARE AROUND 160 A SHARE PETER VALLI CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THIRDQUARTER PROFIT WON'T TOP THE NET OF 85 MILLION OR 35 CENTS A SHARE REPORTED FOR THE SECOND QUARTER SALES WERE 1143 MILLION MR VALLI DIDN'T ELABORATE BUT A COMPANY SPOKESMAN SAID NET INCOME IS EXPECTED TO TOP THE EARNINGS OF 69 MILLION OR 29 CENTS A SHARE OF THE FIRST QUARTER SALES IN THE QUARTER TOTALED 1083 MILLION MR VALLI ATTRIBUTED THE SHORTFALL TO CONTINUING ECONOMIC WEAKNESS IN THE US AND WESTERN EUROPE AND TO TEMPORARY CURRENCY SHORTAGES IN THE MIDDLE EAST THE EXECUTIVE SAID THE COMPANY CONTINUES TO EXPECT HIGHER SALES AND PROFIT IN THE FOURTH QUARTER ALTHOUGH HE ADDED THAT FOURTHQUARTER RESULTS WON'T MAKE UP FOR THE EARNINGS SHORTFALL IN THE THIRD QUARTER BWIP LAST YEAR HAD NET INCOME OF 24 MILLION OR 99 CENTS A SHARE AFTER ONETIME CHARGES TOTALING 184 MILLION OR 76 CENTS A SHARE SALES TOTALED 4331 MILLION 9309210044 930921 LAW LEGAL BEAT RTC TRIES TO FIRE BLACK LAW FIRM CHARGES FAILURE TO DISCLOSE LOANS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL THE RESOLUTION TRUST CORP HAS TAKEN STEPS TO FIRE A BLACKOWNED LAW FIRM FOR ALLEGEDLY FAILING TO DISCLOSE LOANS THAT TWO PARTNERS INCLUDING CURRENT US REP WILLIAM JEFFERSON OWED TO FAILED THRIFTS THE ACTION WHICH IS BEING FOUGHT BY OFFICIALS OVERSEEING MINORITY CONTRACTING AT THE AGENCY REFLECTS THE INCREASING COMPLEXITY OF DOLING OUT SUCH LEGAL WORK GIVEN THE AGENCY'S TOUGH CONFLICTOFINTEREST STANDARDS AND THE MOVE COMES AT A TIME WHEN THE AGENCY IS UNDER PRESSURE FROM CONGRESS TO INCREASE THE USE OF MINORITY LAW FIRMS BRYAN JUPITER LEWIS & BLANSON A NEW ORLEANS LAW FIRM HAS BEEN A MAJOR BENEFICIARY OF THE AGENCY'S AFFIRMATIVE ACTION PROGRAM RECEIVING 368000 IN FEES OVER THE PAST TWO YEARS THE RTC SAID LAST YEAR IT RANKED AMONG THE 10 MINORITYOWNED LAW FIRMS THAT RECEIVED THE MOST IN FEES FROM BANK AND THRIFT REGULATORS GOVERNMENT RECORDS SHOW BUT THE RTC'S WATCHDOG OFFICE OF CONTRACTOR OVERSIGHT AND SURVEILLANCE RECENTLY CONCLUDED THAT THE LAW FIRM FAILED TO PROPERLY DISCLOSE LOAN DEFAULTS BY REP JEFFERSON D LA AND PARTNER TREVOR BRYAN WHILE APPLYING TO BECOME AN ELIGIBLE CONTRACTOR IN 1990 AND 1991 REP JEFFERSON A FORMER SENIOR PARTNER WHO RESIGNED FROM THE FIRM IN 1990 WAS IN DEFAULT ON MORE THAN 700000 IN LOANS WHILE MR BRYAN WAS IN DEFAULT ON A 64000 OBLIGATION ACCORDING TO THE REPORT THE MONEY WAS OWED TO COMMONWEALTH SAVINGS AND LOAN ASSOCIATION AND HOME SAVINGS AND LOAN ASSOCIATION TWO FAILED NEW ORLEANSBASED THRIFTS SUBSEQUENTLY AN INTERAGENCY COMMITTEE CHARGED WITH RULING ON CONFLICTS OF INTEREST INVOLVING LAW FIRMS WORKING FOR THE GOVERNMENT UNANIMOUSLY VOTED TO TERMINATE THE RTC'S LEGAL CONTRACTING AGREEMENT WITH BRYAN JUPITER THE COMMITTEE ALSO VOTED TO HAVE THE FIRM'S EXISTING CASELOAD REFERRED TO OTHER LAW FIRMS ACKNOWLEDGED JOSE CEPPI ASSISTANT GENERAL COUNSEL AT THE FEDERAL DEPOSIT INSURANCE CORP WHO SITS ON THE PANEL THE INVESTIGATION BY THE CONTRACTOROVERSIGHT OFFICE BEGAN AFTER JOHNNIE B BOOKER THE RTC'S VICE PRESIDENT FOR MINORITY AND WOMEN'S PROGRAMS COMPLAINED TO ACTING RTC CHIEF EXECUTIVE OFFICER ROGER C ALTMAN THAT BRYAN JUPITER HAD BEEN WRONGLY DENIED BUSINESS BY THE AGENCY'S DALLAS REGIONAL OFFICE ACCORDING TO THE INTERNAL REPORT MR CEPPI SAID MS BOOKER HAS ASKED TO MEET WITH THE COMMITTEE THIS WEEK TO RECONSIDER ITS DECISION AS PART OF APPLYING TO DO WORK FOR THE AGENCY RTC CONTRACTORS ARE REQUIRED TO DISCLOSE WHETHER THEY HAVE LOANS IN EXCESS OF 50000 TO FAILED INSTITUTIONS AN RTC SPOKESMAN SAID SUCH CONFLICTS ARE FAIRLY ROUTINE AND OFTEN ARE WAIVED IF THE GOVERNMENT CAN OBTAIN ASSURANCES THAT THE INDIVIDUALS WITH THE LOANS DON'T PERSONALLY BENEFIT FROM THE BUSINESS THE SPOKESMAN DECLINED TO COMMENT FURTHER ABOUT BRYAN JUPITER'S STATUS THE OVERSIGHT REPORT FOUND THAT MR BRYAN HAD AT ONE POINT OBTAINED A WAIVER FROM THE RTC AND WAS ATTEMPTING TO WORK OUT HIS LOAN PROBLEM ALSO SOME RTC LAWYERS WERE UNDER THE IMPRESSION THAT MR JEFFERSON'S LOANS WEREN'T DISQUALIFYING BECAUSE HE HAD LEFT THE LAW FIRM THE INTERNAL REPORT SAID BUT THE OVERSIGHT INVESTIGATORS SAID THE WAIVER DIDN'T EXCUSE THE FACT THAT THE LAW FIRM FALSELY CERTIFIED MR BRYAN'S STATUS AT THE OUTSET ACCORDING TO THEIR REPORT IN ADDITION THE REPORT FOUND THE LAW FIRM OWED REP JEFFERSON 824000 WHICH WOULD BE PAID OVER 10 YEARS AND WAS OBLIGED TO DISCLOSE HIS LOANS AS A RELATED ENTITY A FORMER STATE SENATOR MR JEFFERSON WITHDREW FROM THE FIRM IN 1990 WHEN HE WAS ELECTED TO CONGRESS THE FIRST BLACK REPRESENTATIVE FROM LOUISIANA SINCE RECONSTRUCTION MR JEFFERSON COULDN'T BE REACHED FOR COMMENT AND A SPOKESMAN SAID HE WASN'T FAMILIAR WITH DETAILS OF THE RTC MATTER MR BRYAN DECLINED TO DISCUSS THE MATTER SAYING HE WAS BOUND NOT TO COMMENT UNDER THE RTC'S STANDARD LAW FIRM CONFIDENTIALITY AGREEMENT HE ALSO SAID HE HADN'T SEEN A COPY OF THE INTERNAL REPORT MR CEPPI THE FDIC OFFICIAL SAID THE CONFLICTS COMMITTEE HAS HALTED THE RETAINING OF A NUMBER OF OTHER LAW FIRMS FOR INADEQUATE DISCLOSURE OF LOANS OVER THE YEARS ALTHOUGH HE SAID HE COULDN'T RECALL ANOTHER INSTANCE WHERE SUCH AN ACTION WAS TAKEN AGAINST A MINORITY LAW FIRM A BUSINESSMAN'S PRISON SENTENCE WAS SHORTENED BECAUSE A JUDGE FOUND THAT THE MAN ALREADY HAD SUFFERED WHEN HIS COMPANY COLLAPSED AFTER HIS CRIMES WERE DISCOVERED US JUDGE VINCENT L BRODERICK SENTENCED ARUN GAIND FORMER PRESIDENT OF NANCO LABORATORIES INC TO 33 MONTHS FOR MAKING FALSE STATEMENTS TO THE ENVIRONMENTAL PROTECTION AGENCY UNDER THE FEDERAL SENTENCING GUIDELINES WHICH JUDGES GENERALLY MUST FOLLOW HIS VIOLATION WOULD HAVE BROUGHT A PRISON TERM OF ABOUT 46 MONTHS SENTENCINGGUIDELINES SPECIALISTS SAID JUDGE BRODERICK'S RULING IS APPARENTLY THE FIRST IN WHICH A SENTENCE WAS REDUCED BECAUSE THE DEFENDANT'S BUSINESS WAS HURT BY HIS OWN CRIME NANCO LABORATORIES WAPPINGER FALLS NY WAS A MAJOR TESTER OF SOIL AND WATER SAMPLES FOR THE EPA IT SHUT DOWN AFTER MR GAIND 49 YEARS OLD OF LAGRANGEVILLE NY WAS CONVICTED LAST YEAR OF BACKDATING DOCUMENTS TO AVOID EPA PENALTIES FOR NOT TESTING CERTAIN SAMPLES SOONER ELIMINATION OF THE DEFENDANT'S ABILITY TO ENGAGE IN SIMILAR OR RELATED ACTIVITIES OR INDEED ANY MAJOR BUSINESS ACTIVITY FOR SOME TIME AND THE SUBSTANTIAL LOSS OF ASSETS AND INCOME RESULTING FROM THIS HAVE DECREASED FOR THE FORESEEABLE FUTURE HIS ABILITY TO COMMIT FURTHER CRIME SAID JUDGE BRODERICK IN FEDERAL COURT IN WHITE PLAINS NY DRAFTERS OF THE SENTENCING GUIDELINES DIDN'T TAKE SUCH CIRCUMSTANCES INTO ACCOUNT HE ADDED WHO'S NEWS DEFENSE LAWYER MICHAEL F ARMSTRONG AND NINE OTHER ATTORNEYS FROM NEW YORK LAW FIRM LORD DAY & LORD BARRETT SMITH WILL JOIN KIRKPATRICK & LOCKHART STARTING OCT 1 THEY WILL FORM THE PITTSBURGHBASED LAW FIRM'S NEW YORK OFFICE WHICH INITIALLY WILL FOCUS ON CIVIL AND CRIMINAL LITIGATION ESPECIALLY IN BUSINESS AND SECURITIES MATTERS MR ARMSTRONG A FORMER STATE AND FEDERAL PROSECUTOR REPRESENTED MICHAEL MILKEN'S BROTHER LOWELL IN THE GOVERNMENT'S INVESTIGATION OF DREXEL BURNHAM LAMBERT INC LOWELL MILKEN WASN'T CHARGED WITH ANY WRONGDOING COMPLEX ARBITRATIONS THE AMERICAN ARBITRATION ASSOCIATION SAID A SPECIAL PROGRAM BEGUN IN FEBRUARY TO RESOLVE COMPLEX COMMERCIAL CLAIMS ALREADY HAS RECEIVED 104 CASES THE PROGRAM APPLIES ONLY TO CLAIMS OF MORE THAN 1 MILLION THE CLAIMS SO FAR TOTAL MORE THAN 1 BILLION AND 15 OF THE CASES HAVE BEEN CLOSED PROSECUTORS FAULTED NEW TRIALS WERE ORDERED FOR SEVEN DEFENDANTS IN CHICAGO'S EL RUKN GANG PROSECUTION BECAUSE OF ALLEGED WRONGDOING BY FEDERAL PROSECUTORS THE ASSOCIATED PRESS REPORTED THE RULING MARKED THE THIRD TIME FEDERAL JUDGES HAVE FAULTED THE US ATTORNEY'S OFFICE IN CHICAGO FOR ITS HANDLING OF THE CASE WHICH LED TO 53 CONVICTIONS OR GUILTY PLEAS AFTER A SIXYEAR INVESTIGATION IN THE LATEST DECISION A JUDGE SAID PROSECUTORS CONCEALED EVIDENCE THAT GOVERNMENT WITNESSES TOOK DRUGS AND RECEIVED SPECIAL FAVORS WHILE IN CUSTODY NEW TRIALS WERE ORDERED FOR SIX OTHER EL RUKN DEFENDANTS IN JUNE JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9309210043 930921 BUSINESS BRIEF POPE & TALBOT INC THIRDPERIOD EARNINGS SEEN AS LOWER THAN EXPECTED POPE & TALBOT INC SAID IT EXPECTS PERSHARE EARNINGS OF FIVE TO 10 CENTS FOR THE THIRD QUARTER A YEAR EARLIER THE PORTLAND ORE FORESTPRODUCTS COMPANY HAD A LOSS OF OF 907000 OR EIGHT CENTS A SHARE ACCORDING TO ZACK'S INVESTMENT RESEARCH INC ANALYSTS HAD EXPECTED PERSHARE EARNINGS OF 20 TO 34 CENTS PETER T POPE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID RESULTS WOULD BE ONLY SLIGHTLY ABOVE BREAKEVEN BECAUSE PROFIT FROM LUMBER AND DISPOSABLE DIAPERS WERE BEING LARGELY OFFSET BY LOSSES IN PULP AND TISSUE PAPER HE SAID STRENGTHENING LUMBER DEMAND AND PRICES WILL HELP FOURTHQUARTER EARNINGS WITH ADDITIONAL EARNINGS IMPROVEMENT IN EARLY 1994 AIDED BY A PULP CONTRACT WITH GRAY'S HARBOR PAPER CO 9309210042 930921 ABREAST OF THE MARKET INDUSTRIALS DECLINE 3745 POINTS ON PROFIT WORRIES SELLING IN BONDS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT EARNINGS AND CONTINUED SELLING IN BONDS STAGGERED STOCKS ANALYSTS SAID RECENT LACKLUSTER ECONOMIC REPORTS AND DOWNBEAT PROFIT FORECASTS FROM SEVERAL HIGH PROFILE CORPORATIONS TRIGGERED THE CONCERNS A MORE THAN 3/4POINT LOSS IN LONGTERM BONDS ADDED TO THE SELLING PRESSURE ECONOMICALLY SENSITIVE STOCKS WERE HARDEST HIT SENDING THE DOW JONES INDUSTRIAL AVERAGE DOWN 3745 POINTS OR 104 TO 357580 ITS FIRST CLOSE BELOW 3600 SINCE SEPT 9 SEVERAL ROUNDS OF PROGRAM SELLING HASTENED THE RETREAT BUT INDEXES LESS INFLUENCED BY CYCLICALS FELL SOMEWHAT LESS AND THE NASDAQ COMPOSITE INDEX OF OVERTHECOUNTER STOCKS EKED OUT A SLIM GAIN OF 010 OR 001 TO 74021 DECLINING BIG BOARD ISSUES OUTPACED ADVANCERS BY A MODERATE 1119 TO 866 NEW YORK STOCK EXCHANGE VOLUME EASED TO ABOUT 228010000 SHARES FROM FRIDAY'S 369520000 SHARES A NINEMONTH HIGH TIED LARGELY TO QUARTERLY FUTURES AND OPTIONS EXPIRATIONS BOTH EASTMAN KODAK AND WESTINGHOUSE FRIDAY PREDICTED DISAPPOINTING THIRDQUARTER RESULTS NIKE JOINED THE CHORUS YESTERDAY RELEASING LOWERTHANEXPECTED RESULTS FOR ITS FIRST QUARTER ENDED LAST MONTH AND FORECASTING A DECLINE FOR THE FULL YEAR NIKE FELL 1 3/4 TO 46 1/4 KODAK WHICH LOST 1 7/8 IN THE PREVIOUS SESSION WAS UNCHANGED AT 59 7/8 WESTINGHOUSE WHICH DROPPED 1 1/8 FRIDAY DECLINED 1/2 TO 13 1/4 DESPITE THE GLOOM STEVEN EINHORN MARKET STRATEGIST AT GOLDMAN SACHS & CO SAID HE DOESN'T EXPECT SHARP ADDITIONAL LOSSES IF THERE IS TO BE ANYTHING FURTHER IT LIKELY WILL BE VERY SMALL RATHER THAN VERY NOTEWORTHY HE SAID MR EINHORN EXPECTS CONTINUED SLOW STEADY ECONOMIC GROWTH AND MILD INFLATION THAT HE SAID SHOULD ALLOW FOR ADDITIONAL EARNINGS GROWTH WITHOUT MAJOR GAINS IN INTEREST RATES BUT PHILIP ROTH TECHNICAL ANALYST AT DEAN WITTER REYNOLDS SAID STOCKS ARE OVERDUE FOR A SHARP SELLOFF OF 10 OR MORE HE SAID IT'S TOO SOON TO TELL IF YESTERDAY'S LOSS MARKS THE START OF THAT RETREAT BUT NOTES THAT SO FAR THE BREADTH OF THE DECLINE IS INNOCUOUSLY NARROW THE STANDARD & POOR'S 500 STOCK INDEX SLIPPED 378 OR 082 TO 45505 THE NEW YORK STOCK EXCHANGE COMPOSITE SLID 189 OR 074 TO 25277 AND THE DOW JONES EQUITY MARKET INDEX DECLINED 329 OR 075 TO 43249 NIKE SKIDDED AFTER THE BEAVERTON ORE FOOTWEAR COMPANY REPORTED EARNINGS OF 149 A SHARE FOR THE FIRST QUARTER ENDED AUG 31 AFTER AN EIGHTCENTASHARE CHARGE TIED TO TAX EXPENSES A YEAR EARLIER IT HAD A PROFIT OF 160 A SHARE NIKE SAID ITS PROFIT FOR ALL OF FISCAL 1994 WILL LIKELY FALL SHORT OF 1993'S 474 A SHARE NATIONAL HEALTH LABORATORIES SKIDDED 1 7/8 TO 15 1/8 ON BIG BOARDLEADING VOLUME OF 38 MILLION SHARES THE LA JOLLA CALIF MEDICAL TESTING SERVICES COMPANY ACKNOWLEDGED IT RECEIVED A SUBPOENA INDICATING ITS BILLING PRACTICES ARE THE SUBJECT OF A FEDERAL PROBE LAST DECEMBER IT PAID A 1114 MILLION SETTLEMENT IN A MEDICAID FRAUD CASE PARAMOUNT COMMUNICATIONS JUMPED 1 1/4 TO 69 3/4 THE WALL STREET JOURNAL REPORTED THAT QVC NETWORK RECEIVED A COMMITMENT FROM COMCAST AND LIBERTY MEDIA TO BACK A RIVAL BID FOR PARAMOUNT BY INVESTING 1 BILLION IN WEST CHESTER PABASED QVC PARAMOUNT THE GIANT NEW YORK MEDIA CONCERN HAS ALREADY AGREED TO BE ACQUIRED BY VIACOM ALSO OF NEW YORK IN NASDAQ TRADING QVC SKIDDED 3 1/2 TO 56 COMCAST CLASS A LOST 3/4 TO 29 3/8 AND LIBERTY MEDIA CLASS A EASED 1/8 TO 23 1/2 ON THE AMERICAN STOCK EXCHANGE VIACOM SHED 5/8 TO 59 1/4 ALSO ON THE AMEX FRUIT OF THE LOOM DROPPED 1 3/8 TO 31 1/2 AFTER IT INTRODUCED A NEW PRICING STRATEGY THAT INCLUDED PRICE CUTS ON SOME PRODUCTS THE CHICAGO CLOTHING MAKER SAID THE MOVE IS DESIGNED TO INCREASE MARKET SHARE GLAXO HOLDINGS JUMPED 1/2 TO 20 THE UNITED KINGDOM PHARMACEUTICAL CONCERN WON A PATENT SUIT IN THE US PREVENTING A CANADIAN COMPANY FROM SELLING GENERIC VERSIONS OF GLAXO'S ZANTAC A BIG SELLING ULCER DRUG SCIMED LIFE SYSTEMS EASED 3/4 TO 47 3/4 ON NASDAQ THE MAPLE GROVE MINN MEDICAL DEVICE MAKER REPORTED NET INCOME OF 97 CENTS A SHARE FOR THE SECOND QUARTER ENDED AUG 31 UP FROM 79 CENTS A SHARE A YEAR EARLIER BUT BELOW THE 102 A SHARE MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM VALLEY BANCORP LOST 1 TO 34 3/4 ON NASDAQ THE APPLETON WIS BANK AND THRIFT COMPANY AGREED TO BE ACQUIRED BY MARSHALL & ILSLEY IN AN 875 MILLION STOCK SWAP SHARES OF MARSHALL BASED IN MILWAUKEE SLIPPED 1 1/4 TO 21 3/4 ALSO ON NASDAQ US SURGICAL LOST 7/8 TO 20 5/8 AFTER A COMPANY OFFICIAL TOLD INVESTORS THAT THE NORWALK CONN MEDICAL PRODUCTS CONCERN WILL HAVE NEGATIVE CASH FLOW UNTIL AT LEAST 1995 AND NOTED THAT HOSPITAL'S INVENTORY LEVELS REMAIN HIGHER THAN NORMAL LATE IN THE SESSION THOUGH THE COMPANY CORRECTED ITS EARLY STATEMENT AND PREDICTED POSITIVE CASH FLOW FOR 1994 TRADING WAS HALTED FOR NEWS OF THE CORRECTION AND DIDN'T RESUME YESTERDAY 9309210041 930921 ECONOMY CLINTON SEEKS FUNDS FOR JOB TRAINING CONSIDERED VITAL TO NAFTA'S APPROVAL BY MICHAEL K FRISBY AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS SCRAMBLING TO FIND MONEY FOR A 5 BILLION WORKER RETRAINING PROGRAM CRUCIAL TO SELLING THE NORTH AMERICAN FREE TRADE AGREEMENT TO CONGRESS GAINING APPROVAL FOR THE TRADE AGREEMENT WILL BE DIFFICULT WITHOUT A COMPREHENSIVE PLAN TO RETRAIN WORKERS WHO MAY LOSE THEIR JOBS UNDER THE PACT IF COMPANIES CHOOSE TO RELOCATE TO MEXICO TO TAKE ADVANTAGE OF LOWER WAGES AN EXTENSIVE WORKER TRAINING PROGRAM WOULD PROVIDE THE ADMINISTRATION AND SKITTISH MEMBERS OF CONGRESS WITH THE POLITICAL COVER TO PRESS FORWARD WITH THE TRADE PACT AT THE SAME TIME NAFTA OPPONENTS PRIVATELY ARE THREATENING TO SLOW THE PROGRESS OF THE WORKER TRAINING BILL EXPECTED TO BE INTRODUCED NEXT MONTH IN AN EFFORT TO DERAIL THE TRADE PACT WHICH ELIMINATES TARIFFS OVER 15 YEARS BETWEEN THE US CANADA AND MEXICO ADMINISTRATION OFFICIALS ARE PUTTING THE FINISHING TOUCHES ON THE WORKER RETRAINING LEGISLATION A PROGRAM THAT WOULD OVERHAUL THE UNEMPLOYMENT COMPENSATION PROGRAM AND INCLUDE FINANCIAL AID AS WELL AS CAREER COUNSELING JOB TRAINING AND JOBSEARCH ASSISTANCE SO FAR THE ADMINISTRATION HAS COME UP 23 BILLION SHORT IN ITS EFFORT TO FULLY FUND THE AMBITIOUS TRAINING PROGRAM WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY IS SET TO MEET WITH BUDGET DIRECTOR LEON PANETTA TODAY TO FIND THE NEEDED FUNDS THE REMAINDER OF THE 5 BILLION ANNUAL COST WOULD COME FROM EXISTING PROGRAMS UNLESS IT'S ABLE TO FIND THE ADDITIONAL FUNDS THE ADMINISTRATION MAY BE FORCED TO SCALE BACK THE PROGRAM UNDER THE BUDGET LAW THE ADMINISTRATION MUST EITHER DECLARE AN EMERGENCY OR FIND OFFSETTING SPENDING CUTS TO PAY FOR AN EXPANDED TRAINING PROGRAM OR TO CONTINUE THE FEDERAL UNEMPLOYMENT BENEFITS PROGRAM THOUGH SOME WHITE HOUSE OFFICIALS HAVE CONCLUDED CONGRESS WILL DEMAND OFFSETTING SPENDING CUTS OTHERS ARE REHEARSING ARGUMENTS THAT COULD BE USED TO DEFEND A PROPOSAL THAT DOESN'T INCLUDE THEM INCLUDING THE ARGUMENT THAT THEY ARE USING THE WINDFALL FROM LOWERTHANEXPECTED INTEREST RATES SO FAR MR CLINTON HAS WITHSTOOD PRESSURE TO BREAK OUT A PIECE OF THE RETRAINING PROGRAM TO CONCENTRATE SOLELY ON PEOPLE WHO LOSE THEIR JOBS AS A RESULT OF NAFTA WHILE SUCH A STRATEGY WOULD MAKE IT EASIER TO BUILD POLITICAL SUPPORT FOR THE PACT BOTH PRESIDENT CLINTON AND LABOR SECRETARY ROBERT REICH HAVE ARGUED THAT IT SHOULDN'T MATTER HOW A PERSON LOSES THEIR JOB THEY CONTEND THE RETRAINING PROGRAM WHICH MR REICH ANNOUNCED THIS MONTH IN A BRIEFING TO REPORTERS SHOULD TAKE CARE OF ALL WORKERS THE PRESIDENT HAS BEEN AGAINST SECTORSPECIFIC TRAINING PROGRAMS AND HE WANTS A BROAD COMPREHENSIVE CHANGE IN THE WORK FORCE OUTLOOK SAID WILLIAM DALEY THE WHITE HOUSE NAFTA CZAR BUT MR DALEY CONCEDES THAT IT MIGHT BE NECESSARY TO CREATE A SPECIAL PROGRAM IF CONGRESS DOESN'T AGREE TO A COMPREHENSIVE RETRAINING PROGRAM THIS PUTS THE LABOR UNIONS IN A DIFFICULT POSITION THOUGH THEY WANT TO KILL NAFTA THEY ALSO SUPPORT A RETRAINING PROGRAM BILL CUNNINGHAM A TAX AND TRADE LOBBYIST FOR THE AFLCIO SAID THAT WHILE UNIONS WANT A SEPARATE RETRAINING PROGRAM FOR PEOPLE WHO LOSE THEIR JOBS UNDER NAFTA THEY WILL HELP THE ADMINISTRATION ON ITS BROADER PLAN TO ASSIST DISPLACED WORKERS INCLUDING THOSE JOBLESS FROM THE CLOSING OF MILITARY FACILITIES LABOR SECRETARY REICH EARLIER THIS MONTH CITED THE IMPORTANCE OF THE TRAINING PROGRAM TO THE TRADE AGREEMENT IF GOVERNMENT DOESN'T DEVELOP A COMPREHENSIVE PROGRAM TO HELP WORKERS CHANGE CAREERS HE ASSERTED WE ARE GOING TO FACE MORE AND MORE POLITICAL PRESSURE TO PRESERVE THE PAST CHANGE BECOMES THE ENEMY WHEN THERE IS THIS MUCH ANXIETY OUT THERE TREASURY SECRETARY LLOYD BENTSEN PREDICTED THAT NAFTA WOULDN'T LOSE SUPPORTERS IF THE RETRAINING PROGRAM IS MOVING WELL THROUGH CONGRESS WHEN NAFTA IS VOTED ON THAT WILL SUFFICE HE SAID HE REJECTED SUGGESTIONS THAT LEGISLATORS WOULD TRY TO FREEZE THE BILL TO HELP THEM FIGHT NAFTA BUT THE PRONAFTA FORCES ARE EXPECTING A BLOW TODAY WHEN HOUSE MAJORITY LEADER RICHARD GEPHARDT IS EXPECTED TO ANNOUNCE HIS OPPOSITION TO THE PACT LAST MONTH THE PRESIDENT CONCEDED THE OUTLOOK WOULD BE BLEAK IF MR GEPHARDT OPENLY OPPOSES NAFTA IN AN INTERVIEW WITH REPORTERS YESTERDAY MR DALEY SAID THAT IF THE ADMINISTRATION HAD APPEASED MR GEPHARDT'S CONCERNS IT WOULD LIKELY LOSE SOME REPUBLICAN VOTES IF YOU DO SOMETHING THAT GETS YOU FIVE VOTES YOU LOSE 20 HE SAID THAT DOESN'T MAKE SENSE MR DALEY ESTIMATED THAT SOME 80 TO 100 DEMOCRATS HAVEN'T YET MADE UP THEIR MINDS ON THE PACT AND COULD BE SWAYED IN ITS FAVOR HE ADDED THAT FORMER CHRYSLER CHAIRMAN LEE IACOCCA AS WELL AS OTHER WELLKNOWN BUSINESS LEADERS AND ENTERTAINERS WILL HELP PROMOTE THE TRADE AGREEMENT MEANWHILE NAFTA SUPPORTERS YESTERDAY SOUGHT TO COUNTER THE REMARKS OF MICHIGAN SEN DONALD RIEGLE WHO DECLARED DURING AN ANTINAFTA RALLY WITH ROSS PEROT THAT LAWMAKERS WHO SUPPORT THE PACT SHOULD BE DEFEATED FOR REELECTION MR DALEY SAID THE PRESIDENT STILL PLANS TO ATTEND A FUNDRAISER FOR MR RIEGLE 9309210040 930921 FOREIGN EXCHANGE YEN GAINS ONLY SLIGHTLY AFTER RATE CUT STEP WAS DISCOUNTED BY EARLIER REPORT A WALL STREET JOURNAL NEWS ROUNDUP THE YEN ROSE SLIGHTLY AGAINST THE DOLLAR IN TOKYO TUESDAY MORNING AFTER THE BANK OF JAPAN'S ANNOUNCEMENT THAT IT WAS CUTTING ITS DISCOUNT RATE THE CENTRAL BANK'S RATE ON LOANS TO BANKS WAS REDUCED TO 175 FROM 25 A CUT IN THE RATE HAD BEEN EXPECTED FOR WEEKS AND HOURS BEFORE THE REDUCTION WAS ANNOUNCED THE WIRE SERVICE OF THE NIHON KEIZAI SHIMBUN THE JAPANESE NEWSPAPER REPORTED THAT THE CUT WOULD BE 075 PERCENTAGE POINT BIGGER THAN THE 05POINT DECREASE THAT MANY IN THE CURRENCY MARKET HAD BEEN EXPECTING IN THEORY LOWER JAPANESE INTEREST RATES SHOULD CURB THE YEN'S STRENGTH BY REDUCING THE RETURNS ON YENDENOMINATED BONDS AND BANK DEPOSITS THUS CURTAILING DEMAND FOR THE CURRENCY BUT THE RECENT MARKET SPECULATION AND THE WIRE SERVICE'S REPORT DILUTED THE MARKET IMPACT OF THE CENTRAL BANK'S ANNOUNCEMENT ITSELF WHICH WAS MADE AT 830 AM TUESDAY TOKYO TIME OR 730 PM MONDAY EASTERN US TIME AT ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS QUOTED AT 10445 YEN DOWN A BIT FROM 10468 YEN IN NEW YORK LATE MONDAY AFTERNOON THE DOLLAR ALSO WAS TRADING AT 16085 MARKS THE REPORT BY THE NIHON KEIZAI SHIMBUN WIRE SERVICE HAD HAD ITS IMPACT HOURS EARLIER PUSHING DOWN THE YEN AGAINST THE DOLLAR AND THE MARK THE DOLLAR'S NEW YORK QUOTE OF 10468 YEN LATE IN THE AFTERNOON WAS UP FROM 10445 YEN IN NEW YORK FRIDAY THE DOLLAR ALSO WAS QUOTED AT 16112 MARKS MONDAY DOWN FROM 16146 MARKS FRIDAY STERLING ROSE TO 15315 FROM 15310 AFTER SPENDING MOST OF MONDAY COMFORTABLY HIGHER AGAINST OTHER MAJOR CURRENCIES TRADERS SAID THE YEN SANK FOLLOWING THE NEWS SERVICE'S REPORT THAT REPORT WAS IN CONTRAST TO EARLIER MEDIA STORIES AND A MARKET BELIEF THAT THE JAPANESE CENTRAL BANK PLANNED TO TRIM THE LENDING FEE BY ONLY 050 POINT THE REPORT TRIGGERED A WAVE OF DOLLAR AND MARK PURCHASES AS MARKET PARTICIPANTS COVERED SHORT POSITIONS AGAINST THE YEN THERE WERE PLENTY OF PEOPLE WHO WERE SHORT DOLLARYEN AND SHORT MARKYEN WHEN THE REPORT CAME OUT SAID BRIAN DOLAN A TRADER AT DAIICHI KANGYO BANK IN NEW YORK THOSE PLAYERS WHO HAD BET THAT THE YEN WAS LIKELY TO RISE AGAINST THE OTHER CURRENCIES HAD TO BUY BACK DOLLARS AND MARKS FOR YEN TO PROTECT THEMSELVES FROM LOSSES THE SHORTCOVERING HELPED BOUNCE THE DOLLAR OFF MONDAY'S INTRADAY LOW OF AROUND 10385 YEN PROPELLING IT ABOUT 075 YEN HIGHER IN A MATTER OF MINUTES THE FOREIGNEXCHANGE MARKET HAD WAITED FOR WEEKS FOR THE BANK OF JAPAN TO CUT THE DISCOUNT RATE IN A BID TO SPUR THE NATION'S STUMBLING ECONOMY AND TO PUT A CEILING ABOVE THE YEN ON MONDAY MANY OF THE YEN SELLERS MOVED INTO THE MARK TRADERS SAID LURED BY HIGH GERMAN INTEREST RATES SUCH BUYING ALSO HELPED SUPPORT THE GERMAN CURRENCY AGAINST THE DOLLAR THE MARK TRADED AT 6495 YEN LATE IN NEW YORK MONDAY UP FROM 6466 YEN FRIDAY ELSEWHERE IN MONDAY'S ACTIVITY TRADERS SAID THAT THE DOLLAR DRIFTED LOWER AGAINST THE MARK IN VERY QUIET DEALINGS AFTER IT FAILED TO HOLD GAINS MADE EARLIER IN THE DAY THEY SAID THAT SENTIMENT TOWARD THE DOLLAR SOURED AFTER IT FAILED TO BREAK ABOVE 16220 MARKS DURING THE EUROPEAN DAY AND TRADERS THEN DECIDED TO PUSH IT LOWER TO SEE WHERE BUYERS MIGHT EMERGE 9309210039 930921 INTERNATIONAL JAPANESE ARREST SHIMIZU CHAIRMAN IN BRIBERY PROBE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE CHAIRMAN OF JAPAN'S LARGEST CONSTRUCTION COMPANY WAS ARRESTED ON SUSPICION OF BRIBING A REGIONAL GOVERNOR THE MOST POWERFUL EXECUTIVE NABBED YET IN A WIDENING POLITICALBUSINESS CORRUPTION SCANDAL PROSECUTORS LATE MONDAY NIGHT DETAINED 75YEAROLD TERUZO YOSHINO CHAIRMAN OF JAPAN'S GIANT SHIMIZU CORP AND THE HEAD OF THE JAPANESE CONSTRUCTION INDUSTRY'S TRADE ASSOCIATION JAPAN'S CONTRACTORS HAVE FOR DECADES BEEN THE CHIEF CONTRIBUTORS TO THE COUNTRY'S CONSERVATIVE POLITICAL ESTABLISHMENT REVELATIONS OF WIDESPREAD BIDRIGGING FOR PUBLIC WORKS PROJECTS HELPED END THE LIBERAL DEMOCRATIC PARTY'S FOURDECADE REIGN EARLIER THIS YEAR THE US GOVERNMENT HAS ALSO BEEN COMPLAINING ABOUT THE UNSAVORY TIES BETWEEN JAPANESE POLITICIANS AND THE CONSTRUCTION INDUSTRY CLAIMING SUCH LINKS UNFAIRLY SHUT US CONTRACTORS OUT OF THE JAPANESE MARKET THE CLINTON ADMINISTRATION IS THREATENING TRADE SANCTIONS SOON IF JAPAN DOESN'T TAKE NEW STEPS TO MAKE PUBLICWORKS BIDDING MORE OPEN NEGOTIATIONS BETWEEN THE TWO GOVERNMENTS EARLIER THIS WEEK PRODUCED FEW RESULTS ALTHOUGH JAPAN HAS OFFERED TO CHANGE SOME OF ITS BIDDING PROCEDURES MORE ARRESTS ARE WIDELY EXPECTED SOON NEWSPAPERS HAVE BEEN FILLED IN RECENT WEEKS WITH INVESTIGATIVE REPORTS OF BIDRIGGING IN VARIOUS MUNICIPAL PUBLICWORKS PROJECTS WHILE TELEVISION NEWS PROGRAMS HAVE FEATURED CONSTRUCTION COMPANY EXECUTIVES VOICES ALTERED AND FACES SHADED TALKING ABOUT THE CORRUPT WAY THEY WON LOCAL GOVERNMENT JOBS SPECIFICALLY MR YOSHINO IS SUSPECTED OF PAYING 10 MILLION YEN 95710 IN DECEMBER TO THE GOVERNOR OF IBARAKI PREFECTURE TO WIN UNIVERSITY AND GOVERNMENTOFFICE BUILDING CONTRACTS AT A NEWS CONFERENCE EARLIER MONDAY MR YOSHINO WAS QUOTED AS TELLING REPORTERS I HAVE NEVER PROVIDED SECRET DONATIONS I COULDN'T HAVE CONDUCTED SUCH A SILLY ACT AS BRIBING ECONOMISTS SAY THE CONSTRUCTION SCANDAL HAS CHILLED JAPAN'S ECONOMY THE GOVERNMENT HAS TRIED TO END THE RECESSION BY BUDGETING 24 TRILLION YEN 2297 BILLION IN PUBLIC SPENDING OVER THE PAST YEAR BUT SOME REGIONAL AND LOCAL GOVERNMENT OFFICIALS HAVE APPARENTLY BEEN AFRAID TO SPEND THE ALLOCATED MONEY CONCERNED THEY MIGHT BE SUSPECTED OF CORRUPTION IN CHOOSING THE CONTRACTOR THE SCANDAL BEGAN TO UNFOLD IN MARCH WHEN POLICE ARRESTED SHIN KANEMARU THE LDP'S BACKROOM POWER BROKER FOR TAX EVASION MR KANEMARU'S OFFICES AND HOMES WERE FILLED WITH STACKS OF CASH BONDS AND GOLD BARS BELIEVED TO BE GIFTS FROM CONSTRUCTION COMPANIES USING EVIDENCE FROM THE KANEMARU CASE PROSECUTORS OVER THE SUMMER ARRESTED THE GOVERNOR OF IBARAKI PREFECTURE AS WELL AS TWO LOCAL MAYORS AND MORE THAN A DOZEN CONSTRUCTIONCOMPANY EXECUTIVES BEFORE MR YOSHINO'S ARREST A SHIMIZU VICE PRESIDENT WAS ARRESTED AS WELL AS THE CHAIRMAN OF THE SMALLER HAZAMA CORP 9309210038 930921 BUSINESS BRIEF ASEGURADORA MEXICANA SA MEXICO SELLS MAJORITY STAKE IN INSURER TO BANK GROUP MEXICO SAID IT SOLD CONTROL OF STATE INSURANCE GROUP ASEGURADORA MEXICANA SA TO BANK GROUP MEXIVALBANPAIS SA FOR 583 MILLION MEXIVAL OUTBID THREE OTHER CONTENDERS FOR THE INSURER KNOWN AS ASEMEX IT PAID 70855 PESOS A SHARE FOR 255 MILLION SHARES OUTSTANDING REPRESENTING 51 OF THE COMPANY THE PURCHASE PRICE REPRESENTS 276 TIMES THE INSURANCE GROUP'S PAIDIN CAPITAL THROUGH AUGUST 1993 THE FINANCE MINISTRY SAID ASEMEX INSURES OTHER STATEOWNED ENTERPRISES SUCH AS PETROLEOS MEXICANOS SA FROM WHICH IT GENERATES NEARLY ALL OF ITS REVENUE BUT WITH THE SELLOFF OF HUNDREDS OF STATE ENTERPRISES THE COMPANY'S PORTFOLIO IS LIKELY TO CHANGE THE SALE REPRESENTS ONE OF THE LAST PRIVATIZATIONS BY THE MEXICAN GOVERNMENT WHICH HAS RAISED MORE THAN 22 BILLION IN THE PAST FIVE YEARS THROUGH AUCTIONS OF STATEOWNED ENTERPRISES MEXIVALBANPAIS INVITED OTHER COMPANIES TO TAKE A STAKE IN ASEMEX WHICH AT THE END OF JUNE CONTROLLED 18 OF MEXICO'S INSURANCE MARKET 9309210037 930921 INTERNATIONAL BRIEF FININVEST SPA BERLUSCONI UNIT MONDADORI NEAR END OF EXCHANGE OFFER SILVIO BERLUSCONI EDITORIALE SPA A MILAN PUBLISHING AND MEDIA COMPANY SAID ITS EXCHANGE OFFER FOR SHARES OF ARNOLDO MONDADORI EDITORE SPA WAS JUST ABOUT FULLY TAKEN UP GIVING IT 99 OF ORDINARY SHARES AND 92 OF SAVINGS SHARES THE EXCHANGE OFFER ANNOUNCED IN MAY WAS FOR ONE BERLUSCONI ORDINARY SHARE FOR EVERY ORDINARY SHARE OF MONDADORI AND THREE BERLUSCONI ORDINARY SHARES FOR EVERY FOUR SAVINGS SHARES THE DEAL ATTRIBUTED A VALUE OF 15000 LIRE 959 TO MONDADORI ORDINARY SHARES WHICH CLOSED AT 13500 LIRE MONDAY FININVEST SPA BERLUSCONI'S PARENT COMPANY NOW INTENDS TO SEEK A LISTING FOR BERLUSCONI ON THE MILAN BOURSE TAKING THE PLACE OF MONDADORI IT IS THOUGHT THAT UP TO 49 OF BERLUSCONI COULD BE OFFERED WITH TRADING BY YEAR END 9309210036 930921 INTERNATIONAL BRIEF AEG AG ELECTRONICS FIRM REVIEWS ALLIANCES AMID SALE RUMORS AEG AG THE FRANKFURTBASED ELECTRONICS UNIT OF GERMANY'S DAIMLERBENZ AG IS REVIEWING STRATEGIC ALLIANCES AND COOPERATION WITH VARIOUS PARTNERS AN AEG SPOKESMAN SAID THE GERMAN NEWS WEEKLY DER SPIEGEL REPORTED THIS WEEK THAT THE COMPANY WILL BE SOLD OFF IN PIECES TO COMPETITORS THE REMAINDER WOULD BE BROUGHT TOGETHER IN A MINIATURE HOLDING COMPANY IT ADDED THE AEG SPOKESMAN SAID THAT RUMORS ABOUT A POSSIBLE SALE HAVE CIRCULATED BEFORE WE WILL SAY SOMETHING ABOUT THIS ISSUE WHEN WE HAVE SOMETHING CONCRETE TO SAY HE SAID AND THAT AN ANNOUNCEMENT COULD COME IN THE NEXT WEEKS DAIMLER GERMANY'S LARGEST INDUSTRIAL GROUP HAS BEEN UNABLE TO TURN AROUND AEG AFTER EIGHT YEARS AND 5 BILLION MARKS 31 BILLION OF EFFORT DER SPIEGEL REPORTED AEG HAS LOST ABOUT 250 MILLION MARKS IN THE FIRST EIGHT MONTHS OF THE YEAR AEG ON FRIDAY REPORTED GROUP SALES SLID 75 TO 62 BILLION MARKS AND ORDERS FELL 6 IT DIDN'T RELEASE ANY INDICATION OF PROFITABILITY 9309210035 930921 BUSINESS BRIEF COSTCO WHOLESALE CORP FISCAL 4THQUARTER NET FELL DESPITE 14 INCREASE IN SALES COSTCO WHOLESALE CORP REPORTED A 10 DECLINE IN NET INCOME FOR ITS FISCAL FOURTH QUARTER ALTHOUGH SALES INCREASED 14 THE FINANCIAL RESULTS WERE CONTAINED IN PROXY MATERIALS FOR A SPECIAL MEETING SCHEDULED FOR OCT 21 FOR A SHAREHOLDER VOTE ON THE SEATTLE COMPANY'S PROPOSED MERGER WITH THE PRICE CO OF SAN DIEGO COSTCO SAID IT EARNED 35 MILLION OR 29 CENTS A SHARE FOR THE QUARTER ENDED AUG 29 COMPARED WITH 39 MILLION OR 32 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES REACHED 237 BILLION UP FROM 208 BILLION FOR THE YEAR THE WAREHOUSE SUPERMARKET COMPANY EARNED 109 MILLION OR 90 CENTS A SHARE DOWN 35 FROM 113 MILLION OR 93 CENTS A SHARE IN FISCAL 1992 FULLYEAR SALES TOTALED 751 BILLION UP 16 FROM 65 BILLION 9309210034 930921 INTERNATIONAL OVER HALF OF EUROPE'S BIG FIRMS ARE PLANNING WORK FORCE CUTS DOWNSIZING IN NEXT 2 YEARS IS EXPECTED TO SURPASS RATE OF MOVES IN US BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE THAN HALF OF EUROPE'S LARGEST CORPORATIONS PLAN TO CUT THEIR WORK FORCES IN THE NEXT TWO YEARS AS GLOBAL COMPETITION AND HIGH WAGE RATES TAKE THEIR TOLL A SURVEY SHOWS THE DOWNSIZING IS EXPECTED TO SURPASS EVEN THAT OF THE US WHERE COMPANIES HAVE BEEN INTRODUCING LABORSAVING TECHNOLOGY FOR SEVERAL YEARS THE MOVES COULD INCREASE OVERALL UNEMPLOYMENT PROLONGING EUROPE'S RECESSION AND ADDING TO PRESSURE ON COUNTRIES TO STIMULATE THEIR ECONOMIES BY LOWERING INTEREST RATES THE SURVEY BY DRAKE BEAM MORIN INC AN INTERNATIONAL HUMAN RESOURCES CONSULTING FIRM FOUND 52 OF 400 OF THE LARGEST COMPANIES IN 12 EUROPEAN COUNTRIES PLANNED TO CUT THEIR WORK FORCE BY THE END OF 1995 THAT COMPARES WITH 42 OF THE LARGEST US COMPANIES IN A RECENT SURVEY SAID WILLIAM MORIN CHAIRMAN OF DRAKE BEAM THE HIT OF GLOBALIZATION IS TAKING PLACE MR MORIN SAID THE CREATION OF A SINGLE EUROPEAN MARKET HAS LEFT TOO MANY COMPANIES PRODUCING THE SAME GOODS WHILE GLOBAL COMPETITION IS FORCING COMPANIES TO PRODUCE LARGE QUANTITIES OF GOODS IN FEWER LOCATIONS A SUMMARY BOOKLET EXPLAINS AT THE SAME TIME RELATIVELY HIGH LABOR COSTS IN PLACES SUCH AS WESTERN GERMANY ARE FORCING COMPANIES TO MOVE JOBS TO EASTERN EUROPE THREEFOURTHS OF THE 80 GERMAN COMPANIES SURVEYED SAID THEY WOULD REDUCE THEIR LOCAL PAYROLLS IT'S HAPPENING IN EUROPE BECAUSE THE US CORPORATE COMPETITIVE POSITION IS SO GOOD SAID STEPHEN AXILROD A FORMER TOP FEDERAL RESERVE BOARD OFFICIAL AND NOW VICE CHAIRMAN OF NIKKO SECURITIES A JAPANESE BROKERAGE FIRM HE ADDED THAT THE CATCHUP BY EUROPEAN COMPANIES ON DOWNSIZING COULD HAVE A NEGATIVE IMPACT ON US TRADE ONLY IF THE EUROPEANS DO IT WITHOUT TAKING STRONG STEPS TO STIMULATE THEIR ECONOMIES WILL BROWN CHIEF ECONOMIST OF MORGAN GUARANTY TRUST CO IS PESSIMISTIC THAT EUROPE'S MAJOR COUNTRIES WILL LOWER INTEREST RATES ENOUGH TO COUNTERACT THE CORPORATE LAYOFFS THAT'S ONE REASON WHY I REMAIN PESSIMISTIC THAT THE RECESSION WILL CONTINUE INTO NEXT YEAR HE SAID UNEMPLOYMENT LEVELS IN EUROPE WHICH RANGE FROM 27 IN LUXEMBOURG TO 213 IN SPAIN WILL AVERAGE 12 BY THE END OF 1994 UP FROM 11 NOW DRAKE BEAM PREDICTS THAT WILL ADD A MILLION PEOPLE TO THE CURRENT 17 MILLION UNEMPLOYED WITH TWO MILLION MORE OUT OF WORK BY THE END OF 1995 WESTERN EUROPEAN INDUSTRIES EXPECTED TO BE HARDEST HIT BY THE RESTRUCTURING STATEGIES WILL INCLUDE AUTOMOTIVE CHEMICAL COMPUTERS AND FINANCIAL SERVICES THE REPORT PROJECTS MR MORIN CITED THE ANNOUNCEMENT LAST WEEK BY DAIMLERBENZ AG GERMANY'S LARGEST INDUSTRIAL GROUP TO SCRAP 40000 JOBS THIS YEAR AND NEXT AS EVIDENCE OF THE TREND TO BE SURE NONE OF THE COMPANIES SURVEYED SPECIFIED HOW MUCH DOWNSIZING THEY PLAN AND THE EFFECT OF THEIR MOVES ON THE ECONOMY COULD BE OFFSET BY GOVERNMENT STIMULUS MEASURES ALSO EUROPEAN COUNTRIES HAVE LAWS TO PROTECT WORKERS FROM SUDDEN CUTBACKS WHICH MAKES IT MORE DIFFICULT FOR EUROPEAN COMPANIES TO DOWNSIZE QUICKLY THAN THEIR COUNTERPARTS IN THE US FRANCE HAS BEEN URGING COMPANIES RECENTLY NOT TO LAY OFF WORKERS EVEN WHEN THEY ARE ALLOWED TO DO SO BUT THE DRAKE BEAM REPORT NOTED THAT EMPLOYMENT PROTECTION LEGISLATION IS BEING LIBERALIZED IN MOST COUNTRIES MAKING IT EASIER FOR COMPANIES TO RIGHTSIZE THEIR OPERATIONS WHAT WE DON'T KNOW IS WHETHER MANAGEMENTS WILL MAKE THOSE DECISIONS MR MORIN SAID THERE IS STILL A EUROPEAN MENTALITY ABOUT LIFETIME EMPLOYMENT HE ADDED THE ANTICIPATED CUTBACKS WILL SPUR SELFEMPLOYMENT AND ENTREPRENEURIAL VENTURES DRAKE BEAM SAID ESPECIALLY AS HALF OF EUROPE'S UNEMPLOYED HAVE ALREADY BEEN OUT OF WORK FOR A YEAR OR MORE THAT COMPARES WITH 6 IN THE US DOWNSIZING WILL ALSO SPUR THE TREND TOWARD PARTTIME WORKERS IN THE PAST YEAR THE NUMBER OF EUROPE'S PARTTIME OR SELFEMPLOYED WORKERS HAS JUMPED TO ABOUT 12 OF THE WORK FORCE FROM 8 MOST COMPANIES SURVEYED SAID THEY EXPECTED NORMAL ATTRITION AND VOLUNTARY EARLY RETIREMENT TO ACCOMPLISH THEIR DOWNSIZING BUT BRITA ASKEY VICE PRESIDENT OF DRAKE BEAM ADDED THE HARSH REALITY IS THAT ATTRITION MAY NOT BE ENOUGH INDEED IN THE US PEOPLE UNDERESTIMATED HOW MUCH DOWNSIZING THERE WAS TO COME SAID MR BROWN OF MORGAN GUARANTY TRUST AS A RESULT HE ADDED THE PROCESS IS STILL GOING ON THE LATEST REPORT ON US CORPORATE DOWNSIZING BY CHALLENGER GRAY & CHRISTMAS INC SAID THERE WERE 20 MORE LAYOFFS ANNOUNCED IN THE FIRST EIGHT MONTHS OF THIS YEAR THAN IN THE FIRST NINE MONTHS OF 1991 AT THE HEIGHT OF THE RECESSION SOURCES EUROPEAN COMMUNITY COMMISSION AND DRAKE BEAM MORIN INC 9309210033 930921 INTERNATIONAL JAPAN SEEKS TO PLAY A BIGGER ROLE ON THE GLOBAL STAGE TOKYO OFFERS TO BEAR MORE RESPONSIBILITY BUT DOESN'T SUGGEST SPECIFIC STEPS BY JACOB M SCHLESINGER AND CRAIG FORMAN STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN DOESN'T WANT TO BE THE KID BROTHER ANY MORE FOR MORE THAN FOUR DECADES AFTER WORLD WAR II JAPAN'S LEADERS DEFINED THIS NATION'S WORLD ROLE LARGELY AS JUNIOR PARTNER TO THE US FOLLOWING WASHINGTON IN DIPLOMACY AND DEFENSE WHILE BUILDING A STRONG ECONOMY NOW JAPAN'S NEW ADMINISTRATION SAYS IT IS TIME FOR A MORE EQUAL PARTNERSHIP I DON'T THINK WE CAN CALL OUR RELATIONS BIG BROTHER/LITTLE BROTHER' ANY LONGER FOREIGN MINISTER TSUTOMU HATA SAID IN AN INTERVIEW JAPAN'S NEW DIPLOMATIC CAMPAIGN OFFICIALLY BEGINS SATURDAY WHEN PRIME MINISTER MORIHIRO HOSOKAWA GOES TO NEW YORK TO MEET PRESIDENT CLINTON AND ADDRESS THE UNITED NATIONS GENERAL ASSEMBLY MR HOSOKAWA'S DEBUT ON THE INTERNATIONAL SCENE COMES AGAINST THE BACKDROP OF GROWING FRICTION WITH THE US WASHINGTON IN RECENT YEARS HAS ACCUSED TOKYO OF SHIRKING RESPONSIBILITY FOR MAINTAINING GLOBAL PEACE AND PROSPERITY AND DRAGGING ITS FEET ON TRADE DISPUTES MR HOSOKAWA'S GOVERNMENT WHICH BROKE THE LIBERAL DEMOCRATIC PARTY'S FOURDECADE GRIP ON POWER LAST MONTH WOULD LIKE TO EASE THE TENSIONS JAPAN HAS ALWAYS BEEN SEEN AS THE FOLLOWER SAID MR HATA WHO HELPED ENGINEER THE LDP'S DOWNFALL WE MUST BUILD UP A RELATIONSHIP THAT CAN BE CALLED A TRUE RESPONSIBLE PARTNERSHIP BUT MR HATA WHO IS ALSO DEPUTY PRIME MINISTER OFFERED NO SPECIFIC INITIATIVES ON ISSUES SUCH AS TRADE THAT HAVE BEEN AT THE CORE OF BILATERAL DISPUTES HE ALSO CAUTIONED WASHINGTON AGAINST EXCESSIVE EXPECTATIONS FOR THE NEW CABINET WHICH FOR ALL ITS RHETORIC IS TOO FRAGILE TO CHANGE POLICIES DRASTICALLY ANYTIME SOON STILL MR CLINTON SHOULD LIKE AT LEAST SOME OF WHAT HE HEARS FROM JAPAN'S NEW LEADERSHIP JAPAN'S HUGE TRADE SURPLUS WILL TOP THE AGENDA IN THE CLINTONHOSOKAWA TALKS AND THE JAPANESE WILL TELL HIM THEY ARE TRYING TO DO SOMETHING ABOUT CURBING THEIR HUGE SURPLUSES AND STIMULATING THE LACKLUSTER JAPANESE ECONOMY TUESDAY MORNING THE BANK OF JAPAN CUT ITS MAIN LENDING RATE BY THREEFOURTHS OF A PERCENTAGE POINT TO A POSTWAR LOW OF 175 IN A NEW INITIATIVE TO SPUR RECOVERY MONDAY MR HATA ALSO SAID THAT JAPAN WAS WILLING TO DO ITS PART TO SUPPORT US EFFORTS TO FOSTER THE MIDEAST PEACE PROCESS INCLUDING OFFERING FINANCIAL ASSISTANCE IN THE REGION IN THE PAST MR HOSOKAWA'S PREDECESSOR KIICHI MIYAZAWA WAS COOL TO THE US PRESIDENT'S TOUGH TRADE STRATEGY MR CLINTON IN TURN IRKED MR MIYAZAWA WHEN IN A SPEECH TO JAPANESE COLLEGE STUDENTS IN JULY HE URGED THE AUDIENCE TO EMBRACE CHANGE SINCE THEN MR HOSOKAWA'S SEVENPARTY COALITION GOVERNMENT HAS ENDORSED THE SAME PROCONSUMER DEREGULATION PHILOSOPHY MR CLINTON TALKED UP THAT DAY IN TOKYO DEREGULATION IS A PILLAR OF TOKYO'S EMERGENCY ECONOMIC STIMULUS PACKAGE ANNOUNCED LAST WEEK IN YESTERDAY'S INTERVIEW MR HATA SAID JAPAN'S STIMULUS EFFORTS WILL BE A BOON TO JAPAN AND THE WORLD ECONOMY CUTTING RED TAPE WILL LEAD TO FURTHER OPENING UP OF THE JAPANESE MARKET MR HATA SAID I ALSO BELIEVE THAT THIS WILL MEAN A NEW STANCE FOR THE JAPANESE GOVERNMENT ATTACHING GREATER IMPORTANCE TO THE EVERYDAY LIFE OF THE ORDINARY PEOPLE THE CONSUMER STILL CRITICS DERIDE THE GOVERNMENT'S STIMULUS AND DEREGULATION EFFORTS AS MORE SYMBOLIC THAN SUBSTANTIVE SAYING THEY WILL HAVE LITTLE IMPACT ON THE ECONOMY AND IF MR CLINTON IS EXPECTING ANY SPECIFIC BREAKTHROUGHS AT THE COMING MEETING HE MAY BE DISAPPOINTED PREVIOUS JAPANESE PRIME MINISTERS BROUGHT OMIYAGE LITERALLY GIFTS IN THIS CASE SMALL TRADE CONCESSIONS TO EASE THE INEVITABLE TENSIONS AT BILATERAL SUMMITS MR HATA SUGGESTED A SUCCESSFUL PARTNERSHIP IS BASED ON FRANKNESS NOT GIFTS I BELIEVE THESE DAYS BRINGING OMIYAGE ONLY GENERATES A BAD AFTERTASTE HE SAID IT IS MUCH MORE IMPORTANT THESE DAYS TO TALK VERY CANDIDLY WITH EACH OTHER MR HATA ALSO BACKED OFF FROM A WIDELY PUBLICIZED SUGGESTION HE MADE A WEEK AGO THAT TOKYO SET A TARGET FOR CUTTING THE TRADE SURPLUS THE LDP GOVERNMENT EVIOUSLY HAD REJECTED SUCH CLINTON ADMINISTRATION DEMANDS OUT OF HAND I BELIEVE IT IS TOTALLY ACCEPTABLE FOR PEOPLE TO DISCUSS NUMBERS BUT TO SET SPECIFIC TARGETS I THINK WILL INVITE MANAGED TRADE MR HATA SAID I DON'T THINK THERE IS ANY DIFFERENCE BETWEEN THE MIYAZAWA CABINET AND THE PRESENT CABINET ON THE ISSUE ONE SIGN THAT SIGNIFICANT CHANGE REMAINS DISTANT THIS WEEK'S WIDERANGING BILATERAL TRADE TALKS IN HAWAII HAVE PRODUCED LITTLE CONCRETE PROGRESS BEYOND TRADE THE US GOVERNMENT HAS BEEN FRUSTRATED IN RECENT YEARS BY JAPAN'S INFLEXIBLE STAND ON DEFENSE AND DIPLOMACY SUCH AS ITS RELUCTANCE TO SUPPORT INTERNATIONAL PEACEKEEPING EFFORTS OFFICIALS IN THE NEW GOVERNMENT WHILE STICKING TO THE FUNDAMENTAL PROUS POLICIES SAY JAPAN WILL DO MORE THAN PASSIVELY WATCH THE US TRY TO MANAGE GLOBAL AFFAIRS IT WAS HARD FOR US TO TAKE ON INTERNATIONAL SOCIAL PROBLEMS IN THE LDP ADMINISTRATION BECAUSE PEOPLE LIKE MR MIYAZAWA AND MANY OF THE LDP MEMBERS FELT IT WAS MORE COMFORTABLE FOR JAPAN TO REMAIN FOREVER A YOUNG CHILD ICHIRO OZAWA A POWERBROKER IN THE RULING COALITION SAID IN A SEPARATE INTERVIEW LAST WEEK UNTIL NOW JAPAN THE YOUNGER BROTHER HAS BEEN LARGELY PULLED ALONG BY AMERICA HELD BY THE HAND BY ITS BIG BROTHER MR CLINTON WILL LIKELY ASK MR HOSOKAWA FOR JAPAN'S HELP IN PUSHING ALONG THE ARABISRAELI PEACE TALKS AFRAID OF ANTAGONIZING ITS MAIN OIL SUPPLIERS JAPAN HAS LONG SHUNNED MIDDLE EAST DIPLOMACY NOW JAPAN WILL PROVIDE SUPPORT AS MUCH AS POSSIBLE MR HATA SAID WE WILL OF COURSE PROVIDE FINANCIAL SUPPORT AND TECHNOLOGICAL SUPPORT A MORE ACTIVE JAPAN MAY ALSO MEAN A MORE ASSERTIVE JAPAN ONE THAT SOMETIMES DISAGREES WITH THE US SOME MEMBERS OF JAPAN'S GOVERNMENT SUCH AS MR OZAWA BELIEVE JAPAN SHOULDN'T PULL PUNCHES EVEN IF IT RISKS ANTAGONIZING AMERICA I THINK JAPAN CAN AND SHOULD SAY A GREAT DEAL MORE OF OUR OPINIONS AND THOUGHTS TO THE US SAYS MR OZAWA HE SAID THIS MAY BE SOMETHING THAT DIFFERS FROM AMERICA'S PHILOSOPHY THOUGH IN THE END HE EXPECTS JAPAN WILL STILL DEFER TO THE US FOR EXAMPLE JAPAN TENDS TO GIVE ECONOMIC DEVELOPMENT A HIGHER PRIORITY THAN HUMAN RIGHTS IN ITS FOREIGN POLICY JAPANESE DIPLOMATS HAVE NERVOUSLY WATCHED THE CLINTON ADMINISTRATION'S TOUGHER APPROACH TO CHINA THE PERCEPTION THAT THE US HAS OF CHINA AND THE PERCEPTION JAPAN HAS OF CHINA AS A NEIGHBOR AS AN ASIAN MAY BE SLIGHTLY DIFFERENT MR HATA ACKNOWLEDGED BUT HE INSISTED THAT THE AMERICAN APPROACH AND JAPANESE APPROACH VISAVIS CHINA CAN COMPLEMENT EACH OTHER ON A PERSONAL LEVEL MANY JAPANESE HOPE MR CLINTON AND MR HOSOKAWA FIND THEMSELVES POLITICAL BRETHREN MR CLINTON'S RELATIONSHIP WITH MR MIYAZAWA GOT OFF TO A ROCKY START BUT NOW THE LEADERS OF BOTH COUNTRIES HAVE A LOT IN COMMON BOTH ARE YOUNG FORMER GOVERNORS WITH BROAD VISIONS FOR CHANGE BUT UNCERTAIN DOMESTIC POLITICAL MANDATES IT STILL ISN'T CLEAR WHEN OR IF JAPAN'S MORE ACTIVE DIPLOMACY WILL TAKE ROOT MR HATA AND MR OZAWA RECENT LDP DEFECTORS HEAD THE RIGHT WING OF THE COALITION MR HOSOKAWA HAS SENT MIXED SIGNALS ABOUT HIS OWN DIPLOMATIC VISION PRESS REPORTS OVER THE WEEKEND SAID MR HOSOKAWA IN HIS UN SPEECH WILL SHY AWAY FROM REQUESTING A PERMANENT SECURITY COUNCIL SEAT FOR JAPAN A TOP GOAL OF THE NATION'S FOREIGN POLICY ACTIVISTS THE RULING ALLIANCE ALSO INCLUDES DIEHARD SOCIALISTS WHO SUPPORT A PASSIVE PACIFIST DIPLOMACY FOR JAPAN THE COALITION WAS FORMED TO TRY AND END ENDEMIC POLITICAL CORRUPTION THERE IS NO CONSENSUS ABOUT A BOLDER FOREIGN POLICY MR HOSOKAWA IS NEW TO HIS POSITION AS PRIME MINISTER AND HIS SUPPORT BASE IS OBVIOUSLY A CONGLOMERATE OF SEVERAL MAJOR PARTIES AND ORGANIZATIONS CONCEDED MR OZAWA THOUGH HE HAILED MR HOSOKAWA'S DECISIVENESS COMPARED TO LDP LEADERS SIMPLY AS A PRACTICAL MATTER IT WOULD BE DIFFICULT NO MATTER WHO IT WAS TO MAKE MAJOR CHANGES RIGHT AWAY 9309210032 930921 DIVIDEND NEWS WILLIAMS COS WILLIAMS COS TULSA OKLA DECLARED A 2FOR1 STOCK SPLIT AND BOOSTED ITS QUARTERLY DIVIDEND 105 ON A PRESPLIT BASIS THE QUARTERLY DIVIDEND WOULD INCREASE TO 42 CENTS A SHARE FROM 38 CENTS A SHARE THE COMPANY DECLARED ITS NEXT QUARTERLY DIVIDEND ON A POSTSPLIT BASIS TO BE 21 CENTS A SHARE PAYABLE DEC 27 TO STOCK OF RECORD DEC 3 THE STOCK SPLIT WILL BE EFFECTIVE NOV 5 TO STOCK OF RECORD OCT 8 THE SPLIT WAS DECLARED TO MAKE THE SHARES MORE AFFORDABLE TO THE SMALL INVESTOR AND TO THE COMPANY'S EMPLOYEES SAID A COMPANY SPOKESMAN RECENTLY WILLIAMS'S COMMON SHARES HAVE BEEN TRADING ON THE NEW YORK STOCK EXCHANGE AT ABOUT 60 EACH HE SAID ALSO WILLIAMS A PIPELINE AND TELECOMMUNICATIONS CONCERN DECLARED A 5525 CENTASHARE DIVIDEND ON ITS 221 CUMULATIVE PREFERRED STOCK PAYABLE DEC 1 TO STOCK OF RECORD NOV 12 9309210031 930921 FINANCING BUSINESS PROPERTY TRUST OF AMERICA PROPERTY TRUST OF AMERICA SANTA FE NM SAID IT COMPLETED AN OVERSUBSCRIBED RIGHTS OFFERING RAISING 1258 MILLION WITH THE SALE OF 68 MILLION SHARES OF BENEFICIAL INTEREST AT 18375 A SHARE THE REAL ESTATE INVESTMENT TRUST ALSO SAID THAT TO MEET STRONG DEMAND IT SOLD 22 MILLION SHARES FROM ITS SHELF REGISTRATION FOR A TOTAL OF 398 MILLION RESULTING IN TOTAL PROCEEDS OF ABOUT 1657 MILLION PROPERTY TRUST SAID IT WOULD USE PROCEEDS TO REPAY 103 MILLION OUTSTANDING ON A 125 MILLION REVOLVING CREDIT LINE AND TO INVEST IN ADDITIONAL MULTIFAMILY PROPERTIES IN THE SOUTHWEST SHAREHOLDERS OF RECORD AUG 19 RECEIVED A DIVIDEND OF ONE RIGHT FOR EACH PROPERTY TRUST SHARE OWNED SEVEN RIGHTS WERE REQUIRED TO PURCHASE ONE PROPERTY TRUST SHARE IN THE RIGHTS OFFERING 9309210030 930921 PARTTIMERS LOSE AS CLINTON FOCUSES ON FRINGE BENEFITS BY DOUG BANDOW AFTER PUSHING ITS RECORD TAX INCREASE THROUGH CONGRESS THE ADMINISTRATION HAS HAD THE DISAGREEABLE TASK OF REPORTING THAT THE NUMBER OF PAYROLL JOBS FELL IN AUGUST FOR THE FIRST TIME IN MORE THAN A YEAR DESPITE A SLIGHT DROP IN THE UNEMPLOYMENT RATE THE LATEST INDEX OF LEADING INDICATORS ALSO FELL LEAVING ADMINISTRATION OFFICIALS ENGAGED IN INTERNAL BRAINSTORMING ACCORDING TO COUNCIL OF ECONOMIC ADVISERS MEMBER ALAN BLINDER ABOUT POSSIBLE STEPS TO STIMULATE THE ECONOMY THE FIRST THING THE ADMINISTRATION SHOULD DO HOWEVER IS TO DO NO HARM AND ENSURE THAT CONGRESS DOES NO HARM AS WELL COMPANIES EXPLAIN THAT AN IMPORTANT REASON THEY SHED 39000 EMPLOYEES LAST MONTH IS BECAUSE FRINGE BENEFITS MANY MANDATED BY WASHINGTON ARE SO COSTLY AS A RESULT COMPANIES ARE MORE LIKELY TO HIRE PARTTIME WORKERS TODAY 20 MILLION PEOPLE MORE THAN ONESIXTH OF ALL EMPLOYEES WORK LESS THAN 34 HOURS A WEEK THE INCREASED FLEXIBILITY OF PARTTIME WORK HAS PROVED TO BE A BOON TO MANY EMPLOYEES AS WELL AS EMPLOYERS FOR INSTANCE PARTTIME EMPLOYMENT LETS MANY MOTHERS SUPPLEMENT THEIR FAMILY'S INCOME WHILE SPENDING MORE TIME WITH THEIR CHILDREN THAN THEY COULD IF THEY WORKED FULL TIME BUT LABOR SECRETARY ROBERT REICH HAS BEEN COMPLAINING THAT TOO FEW NEW JOBS ARE PERMANENT FULLTIME ONES EVEN WORSE THE ADMINISTRATION SEEMS READY TO PENALIZE THE PARTTIME OPTION WITH ITS HEALTHCARE PROPOSAL SCHEDULED TO BE FORMALLY ANNOUNCED TOMORROW FIRMS WILL BE FORCED TO COVER A PROPORTIONAL SHARE OF HEALTHCARE PREMIUMS OF EMPLOYEES WHO WORK MORE THAN 10 HOURS A WEEK THUS A COMPANY LIABLE FOR 80 OF THE PREMIUM OF FULLTIME WORKERS THE CURRENT PLAN WOULD OWE 40 OF THE PREMIUM OF SOMEONE WORKING 20 HOURS WEEKLY SOME IN CONGRESS WOULD CARRY THE PRINCIPLE EVEN FURTHER REP PAT SCHROEDER D COLO FOR ONE HAS CHARGED THAT PARTTIME WORKERS ARE BEING EXPLOITED BECAUSE MOST OF THEM LACK NOT ONLY HEALTH INSURANCE BUT ALSO FAMILY LEAVE AND PENSION BENEFITS HER SOLUTION TO WHAT SHE HAS TERMED THIS DANGEROUS SITUATION IS LEGISLATION THAT WOULD REQUIRE EMPLOYERS TO PAY A PRO RATA SHARE OF ALL FULLTIME FRINGE BENEFITS TO PARTTIMERS REP SCHROEDER EXPLAINS THAT HER PROPOSAL WOULD HELP EMPLOYEES BY FORCING FIRMS TO TREAT THEM WITH THE SAME DIGNITY AND RESPECT USUALLY GIVEN FULLTIME WORKERS EMPLOYERS SHE ARGUES WILL BE REWARDED WITH HIGHER PRODUCTIVITY HIGHER MORALE AND HIGHER RETENTION IT IS HARD TO OBJECT TO SUCH GOALS OF COURSE DIGNITY AND RESPECT PRODUCTIVITY AND MORALE IF ONLY REP SCHROEDER AND HER COLLEAGUES WERE ABLE TO PROMOTE THESE SAME VALUES WITHIN THEIR OWN INSTITUTION ALAS THEY AREN'T GOING TO DO ANY BETTER WITH THE PRIVATE SECTOR WHAT THEY WILL END UP DOING IS DESTROYING JOBS FORECLOSING ECONOMIC OPPORTUNITY FOR THOUSANDS PERHAPS MILLIONS OF AMERICANS THE MOST FUNDAMENTAL OBJECTION TO BOTH THE ADMINISTRATION PLAN AND REP SCHROEDER'S BILL IS THAT THE HALLMARK OF A FREE SOCIETY IS THE UNHINDERED NEGOTIATION BETWEEN WORKERS AND COMPANIES OVER COMPENSATION SURELY PARTTIMERS ARE NOT ENTITLED BY RIGHT TO SOME ARBITRARY LEVEL OF FRINGE BENEFITS MOREOVER PARTTIME WORKERS ARE ALMOST CERTAINLY MORE INTERESTED IN LARGER SALARIES THAN SAY PENSIONS SINCE FEW SEE THEIR POSITIONS AS LASTING AN ENTIRE CAREER HOWEVER FEDERAL BENEFITSETTING WILL HARM PRECISELY THESE EMPLOYEES BY FORCING FIRMS TO SHIFT MONEY FROM SALARIES TO OTHER BENEFITS UNFORTUNATELY COMPANIES DO NOT HAVE LIMITLESS FUNDS THUS MONEY PUT INTO SAY FAMILY LEAVE AND HEALTH INSURANCE WILL COME OUT OF OTHER COMPENSATION WHILE A FEW PARTTIMERS MIGHT BENEFIT FROM THIS PROCESS MOST WOULD LOSE OF COURSE EMPLOYERS COULDN'T REDUCE THE PAY OF EMPLOYEES RECEIVING THE MINIMUM WAGE BUT COMPANIES CAN FIRE THEM OR SIMPLY NOT HIRE NEW WORKERS IN THE FUTURE INDEED IT HAS BEEN LONG RECOGNIZED THAT THE MINIMUM WAGE DESTROYS JOBS AND IMPOSING FRINGE BENEFIT REQUIREMENTS IS THE EQUIVALENT OF A HEFTY HIKE IN THE MINIMUM WAGE WHICH THE ADMINISTRATION IS ALSO TALKING ABOUT RAISING AND THEN INDEXING FOR INFLATION AS A RESULT MANY JOBS WOULD DISAPPEAR ENTIRELY FOR INSTANCE EXPLAINS RICHARD MCKENZIE IN A STUDY FOR THE EMPLOYMENT POLICIES INSTITUTE EMPLOYEES WITH THE LEAST EDUCATION AND SKILLS ARE THE MOST LIKELY TO BE REPLACED BY MACHINES AND ROBOTICS WHICH WOULD NOT BE SUBJECT TO ANY BENEFITS TO THE EXTENT THAT COMPANIES SIMPLY ABSORB THE HIGHER COSTS THEY WILL BECOME LESS COMPETITIVE IN AN INCREASINGLY GLOBAL ECONOMY UNLESS THEY MOVE THEIR OPERATIONS OVERSEAS AND US CONSUMERS WILL PAY MORE FOR PRODUCTS AND SERVICES THERE'S JUST NO SUCH THING AS A FREE LUNCH STILL CRITICS OF PARTTIME WORK COMPLAIN THAT EMPLOYERS ARE MISUSING SUCH POSITIONS TO AVOID PAYING FRINGE BENEFITS AT A TIME WHEN SURVEYS SHOW THAT SIX MILLION PARTTIMERS WOULD PREFER FULLTIME WORK ANOTHER THREE MILLION WOULD HOWEVER LIKE TO SHIFT THE OTHER WAY BUT BUSINESS RELIANCE ON PARTTIME WORK TO ESCAPE THE INCREASINGLY ONEROUS RESTRICTIONS ON FULLTIME JOBS IMPOSED BY CAPITOL HILL IS THE FAULT OF CONGRESS WHICH KEEPS HIKING THE FEDERAL TAX BOTH EXPLICIT AND IMPLICIT ON EMPLOYMENT ALAS THE ADMINISTRATION'S HEALTHCARE PROPOSAL AND THE SCHROEDER INITIATIVE WOULD ADD YET AGAIN TO THE COST OF HIRING AN ADDITIONAL WORKER IF THE ADMINISTRATION REALLY WANTS TO SPUR EMPLOYMENT IT SHOULD ELIMINATE THE MONOPOLY HELD BY SCHOOLS THAT DON'T TEACH CUT THE TAX BURDEN ON PEOPLE WHO INVEST IN ECONOMIC GROWTH REMOVE REGULATORY BARRIERS TO JOB CREATION AND REDUCE RATHER THAN INCREASE THE COST OF HIRING NEW WORKERS THE PRESIDENT AND CONGRESS NEED TO RECOGNIZE THAT GOOD INTENTIONS ARE NOT ENOUGH 9309210029 930921 THE MUSTANG IS BIG IN HOLLYWOOD AMONG SPORTY UNPRETENTIOUS' TYPES BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD ISN'T THAT ACTOR ALEC BALDWIN RACING DOWN SUNSET BOULEVARD IN A LATEMODEL BLACK MUSTANG 50 MARKIE POST DRIVES HERS TO THE SET OF CBS'S SITCOM HEARTS AFIRE AND FORGET THOSE SHAKESPEAREAN IMAGES OF KENNETH BRANAGH TRAVERSING THE COUNTRYSIDE ON HIS TRUSTY STEED THE IRISH ACTOR RODE A MUSTANG THROUGH THE GATES OF PARAMOUNT WHEN HE CAME HERE TO FILM DEAD AGAIN UNPRETENTIOUSNESS A QUALITY NOT OFTEN FOUND IN HOLLYWOOD IS WHAT PRODUCER HOWARD ROSENMAN SAYS HE LOVES MOST ABOUT THE FORD MUSTANG HE BOUGHT HIS FIRST ONE A USED 1987 SIX YEARS AGO FROM BILLIONAIRE MUSIC MOGUL DAVID GEFFEN AND HE HAS BEEN A DEVOTED MUSTANG OWNER EVER SINCE I LIKE THE AMERICANNESS OF IT HE SAYS ALSO HE SAYS IT'S FAST EARLIER THIS YEAR MR ROSENMAN WAS PARKED AT A CURB CHATTING ON HIS CAR PHONE WHEN TWO MEN PUT A GUN TO HIS HEAD AND DEMANDED HIS 1992 50 GT I WAS SURPRISED THEY HIJACKED MY CAR SINCE IT WAS JUST A MUSTANG HE SAYS HE HAD PAID ONLY 23000 FOR IT BUT THE POLICE TOLD ME THAT'S THE MOST POPULAR ONE THEY TAKE BECAUSE IT'S SUCH A COOL CAR THE BEVERLY HILLS AND LOS ANGELES POLICE THOUGH BOTH SAY MUSTANGS AREN'T NOTABLY POPULAR AMONG CARJACKERS ALTHOUGH ASSOCIATES URGED MR ROSENMAN TO BUY A MERCEDESBENZ OR A BMW HE HOPPED INTO A NEW 1993 MUSTANG THE DAY OF THE THEFT WITHOUT WAITING FOR HIS OLD CAR TO BE RECOVERED WHICH INDEED IT NEVER WAS FOR STUDIO EXECS WHO GOT THEIR DRIVERS' LICENSES AROUND THE SAME TIME STEVE MCQUEEN WAS GUNNING HIS MUSTANG FASTBACK IN THE 1968 MOVIE BULLITT THE FORD CAR IS A SYMBOL OF ROGUISHNESS FOR AN EXECUTIVE IN HIS 40S TRYING TO STAY HIP THE SPORTYBUTPRACTICAL MUSTANG MAY BE A GOOD COMPROMISE THE '90S MOGUL IN A MUSTANG IS TELLING THE WORLD I MAY BE RICH BUT I DON'T HAVE TO WASTE MY MONEY ON A CAR BESIDES IT IS EASIER TO NAVIGATE WITH A CAR PHONE IN AN AUTOMATICTRANSMISSION MUSTANG THAN IN A STICKSHIFT PORSCHE FORMER PARAMOUNT PICTURES STUDIO CHIEF BRANDON TARTIKOFF DROVE ONE WHILE HE WAS HEAD OF NBC ENTERTAINMENT GROUP AND WORKING IN BURBANK LIKE CLOCKWORK WALT DISNEY STUDIO CHIEF JEFFREY KATZENBERG KEEPS TRADING IN HIS MUSTANGS FOR NEWER ONES HIS LATEST A BLACK CONVERTIBLE HE'S VERY ATTACHED TO THEM SAYS DISNEY PUBLICIST TERRY PRESS 9309210028 930921 BUSINESS BRIEF SMITHS INDUSTRIES PLC LOCKHEED PICKS BRITISH FIRM FOR AIR FORCE'S F22 WORK SMITHS INDUSTRIES PLC OF BRITAIN HAS BEEN SELECTED BY LOCKHEED CORP TO PROVIDE SELECTED ELECTRICALPOWER SYSTEMS FOR THE US AIR FORCE'S NEXTGENERATION F22 JET FIGHTER LOCKHEED PASSED UP BIDS BY TWO USBASED PRODUCERS SUNDSTRAND CORP OF ROCKFORD ILL AND ROCKWELL INTERNATIONAL CORP OF SEAL BEACH CALIF TO AWARD SMITHS THE 10 MILLION DEVELOPMENT CONTRACT A SMITHS SPOKESMAN CONFIRMED LONDONBASED SMITHS IS A DIVERSIFED MANUFACTURER WITH MORE THAN 4000 US EMPLOYEES INCLUDING THOSE WHO WILL DEVELOP THE F22 SYSTEM AT COMPANY SITES IN NEW JERSEY AND FLORIDA A ROCKWELL SPOKESWOMAN CONFIRMED THAT COMPANY'S UNSUCCESSFUL COMPETING BID FOR THE WORK SPOKESMEN FOR LOCKHEED AND SUNDSTRAND COULDN'T IMMEDIATELY CONFIRM THE CIRCUMSTANCES OF THE CONTRACT AWARD LOCKHEED BASED IN CALABASAS CALIF CONTROLS TWOTHIRDS OF DEVELOPMENT WORK ON THE F22 WITH BOEING CO CONTROLLING THE REST 9309210027 930921 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN BRITAIN ALLOWED CHEMICAL EXPORTS TO EGYPT DESPITE CONCERNS THAT THEY COULD END UP IN IRAQI NERVE GAS A FORMER DIPLOMAT TOLD INVESTIGATORS TRYING TO FIND OUT WHETHER THE GOVERNMENT BROKE ITS OWN RULES AND SOLD ARMS TO BAGHDAD DURING THE EIGHTYEAR IRANIRAQ WAR TIM RENTON JUNIOR FOREIGN MINISTER FROM 1985 TO 1987 SAID HE INITIALLY OPPOSED THE EXPORT OF 26 TONS OF HYDROGEN FLUORIDE TO EGYPT IN 1986 INSISTING THAT EGYPT BE TOLD OF BRITAIN'S CONCERNS ABOUT POSSIBLE REEXPORT OR MILITARY USE OF THE CHEMICALS MR RENTON SAID HE STRICTLY APPLIED GUIDELINES ON ARMSRELATED EXPORTS TO IRAN AND IRAQ AND NEVER FAVORED EITHER SIDE THE INQUIRY BEGAN AFTER THE TRIAL OF THREE BUSINESSMEN ACCUSED OF ILLEGALLY SHIPPING ARMS TO IRAQ COLLAPSED LAST NOVEMBER WITNESSES AREN'T UNDER OATH AND HAVE IMMUNITY FROM PROSECUTION YESTERDAY BRITAIN REVOKED ALL EXPORT LICENSES FOR COMPANIES SHIPPING GOODS TO IRAQ THAT ARE EXEMPT FROM A UNITED NATIONS TRADE EMBARGO AFTER IT WAS DISCOVERED THAT SOME LICENSES MAY HAVE BEEN DOCTORED THE CHIEF OF SOUTH KOREA'S NATIONAL POLICE RESIGNED THE LATEST CASUALTY IN A GOVERNMENT CRUSADE AGAINST PUBLIC OFFICIALS SUSPECTED OF GETTING RICH THROUGH GRAFT KIM HYO EUN A POLICEMAN FOR 30 YEARS HAD TAKEN THE POST IN MARCH HIS DEPARTURE WAS EXPECTED TO LEAD TO A SHAKEUP IN THE POLICE FORCE MR KIM 57 YEARS OLD DECLARED HIS PERSONAL WEALTH AT 32 MILLION COMPARED WITH THE AVERAGE OF 18 MILLION REPORTED BY 1167 OFFICIALS INVESTIGATED BY STATE AUDITORS A STRIKE BY NICARAGUAN TAXI TRUCK AND BUS DRIVERS PROTESTING HIGH GASOLINE PRICES AND A NEW LICENSEPLATE TAX PARALYZED MUCH OF THE CAPITAL YESTERDAY THOUSANDS OF WORKERS WERE LEFT STRANDED WHILE OTHERS WALKED TO WORK AS TRANSPORT DRIVERS BURNED TIRES AND ERECTED BARRICADES AT BUSY INTERSECTIONS IN MANAGUA ORGANIZERS SAID THE STRIKE WOULD CONTINUE UNLESS THE GOVERNMENT DROPS THE LICENSEPLATE TAX DRIVERS ALSO WANT A CUT IN GAS PRICES WHICH HAVE RISEN ALMOST 25 IN TWO MONTHS POLICE REOPENED MAJOR ROADS BY LATE MORNING TAIWAN'S CENTRAL BANK WAS ACCUSED OF LEAKING INFORMATION TO FIVE GOVERNMENTOWNED BANKS AND OTHERS ALLOWING THEM TO MAKE HUGE PROFITS FROM INSIDER BOND TRADING CENTRAL BANK GOV SAMUEL SHIEH ADMITTED THAT EXECUTIVES OF THE FIVE BANKS WERE TOLD ABOUT CUTS IN RESERVE REQUIREMENTS HOURS BEFORE THE CHANGES WERE ANNOUNCED THURSDAY BUT HE ARGUED THAT THEY WERE ADVISED IN ADVANCE BECAUSE HE WANTED THEM TO CUT LENDING RATES FOLLOWING THE MOVE OPPOSITION LAWMAKER HSU TIENTSAI SAID MR SHIEH SHOULD BE HELD RESPONSIBLE FOR THE INSIDER TRADING HE SAID THE GOVERNMENTOWNED HUA NAN COMMERCIAL BANK WHICH OBTAINED ADVANCE INFORMATION BOUGHT 187 MILLION OF BONDS A CHINESE REPORT CRITICIZED LOCAL OFFICIALS FOR MOVING TOO SLOWLY TO DISPENSE AN 8743 MILLION CENTRALGOVERNMENT LOAN TO PROMOTE THE DEVELOPMENT OF RURAL INDUSTRY ONLY 20 OF THE LOAN ALLOCATED AT THE BEGINNING OF THE YEAR HAS BEEN FUNNELED TO ENTERPRISES CHINA'S 19 MILLION RURAL ENTERPRISES RUN BY VILLAGE OR TOWNSHIP GOVERNMENTS PROLIFERATED IN THE MID1980S AND HAVE BECOME THE FASTESTGROWING SECTOR OF THE DOMESTIC ECONOMY THE TOTAL OUTPUT OF THE ENTERPRISES WAS EXPECTED TO JUMP 50 THIS YEAR TO 472 BILLION ATTENDANCE AT THE FRANKFURT INTERNATIONAL AUTO SHOW WHICH ENDED SUNDAY DROPPED 25 TO 700000 FROM 935000 AT THE PREVIOUS SHOW IN 1991 THE INDUSTRY TRADE GROUP THAT ORGANIZED THE SHOW SAID THE DOWNTURN WASN'T SURPRISING IN LIGHT OF FALLING DEMAND FOR AUTOS ERIKA EMMRICH PRESIDENT OF THE GROUP CRITICIZED BUILDING MINISTER IRMGARD ADAMSCHWAETZER FOR PROPOSING DURING A VISIT TO THE SHOW THAT THE OIL TAX SHOULD BE RAISED TO FUND PUBLIC TRANSPORTATION A HIGHER TAX WOULD DELAY AN ECONOMIC RECOVERY AND TAKE AWAY MONEY CONSUMERS NEED TO BUY ENVIRONMENTALLY SOUND AUTOS MS EMMRICH SAID SOUTH KOREA'S PLANS TO TRAIN ITS MILITARY PILOTS IN ROMANIA ON NORTH KOREA'S MOST ADVANCED FIGHTER JET COLLAPSED AFTER PROTESTS FROM PYONGYANG SOUTH KOREA'S DEFENSE MINISTRY WAS HOPING TO LEARN ABOUT THE CAPABILITIES OF NORTH KOREA'S AIR FORCE WHICH IS KNOWN TO HAVE 14 SOVIETMADE MIG29 JETS THREE SOUTH KOREAN PILOTS WENT TO ROMANIA IN AUGUST FOR SEVEN WEEKS OF TRAINING ON THE MIG29 BUT NORTH KOREA LEARNED ABOUT THE TRAINING THROUGH SOUTH KOREAN NEWS REPORTS AND ITS PROTESTS PROMPTED ROMANIA TO PULL OUT SEPARATELY SOUTH KOREA WILL BUY RUSSIAN HELICOPTERS FOR THE FIRST TIME FOR USE IN FIGHTING FOREST FIRES RUSSIA WON THE 455 MILLION ORDER FOR TWO 19SEAT HELICOPTERS IN A BIDDING CONTEST THAT INCLUDED US FIRMS WHILE THE TWO HELICOPTERS ARE FOR CIVILIAN USE SOUTH KOREA DIDN'T RULE OUT FUTURE MILITARY PURCHASES FROM RUSSIA ALBANIA WILL SPEND 3000 TO REDESIGN A HUGE MOSAIC IN THE CAPITAL'S CENTRAL SQUARE REMOVING A COMMUNIST STAR AND A BOOK BY FORMER STALINIST DICTATOR ENVER HOXHA HELD BY A FIGURE IN THE MOSAIC ZHAO ZIYANG STRIPPED OF HIS OFFICIAL DUTIES AS CHINA'S COMMUNIST PARTY CHIEF IN 1989 ACCEPTED AN OFFER TO BECOME HONORARY CHAIRMAN OF HONG KONG'S INTERNATIONAL GOLF AND YACHT CLUB 9309210025 930921 BUSINESS BRIEF AMERICAN GENERAL CORP VERDICT AGAINST SUBSIDIARY IS REDUCED FOR SECOND TIME AMERICAN GENERAL CORP SAID A TEXAS STATE COURT REDUCED A JURY VERDICT AGAINST ITS REAL ESTATE UNIT FOR A SECOND TIME THE TOTAL VERDICT WAS CUT TO 1765 MILLION THE ORIGINAL VERDICT WAS 3099 MILLION AND HAD BEEN TRIMMED OF 734 MILLION IN PUNITIVE DAMGES IN JULY YESTERDAY THE COURT CUT PUNITIVE DAMAGES BY ANOTHER 60 MILLION THE STATE DISTRICT COURT IN HOUSTON LEFT INTACT 473 MILLION IN COMPENSATORY DAMAGES THAT THE JURY RULED AMERICAN GENERAL INVESTMENT CORP MUST PAY AVIA DEVELOPMENT GROUP A DEVELOPER THAT HAD CLAIMED THE REAL ESTATE COMPANY BACKED OUT OF A JOINT VENTURE TO BUILD AIR CARGO FACILITIES AT NEW YORK AND NEW JERSEY AIRPORTS DALLASBASED AMERICAN GENERAL HAD CONTENDED ITS SUBSIDIARY NEVER AGREED TO THE VENTURES AFTER A SIXWEEK CIVIL TRIAL A JURY IN MAY FOUND AMERICAN GENERAL INVESTMENT GUILTY OF BREACH OF CONTRACT BREACH OF FIDUCIARY DUTY AND FRAUD THE COMPANY SAID IT PLANS TO APPEAL THE REMAINING AWARD BY YEAR'S END 9309210024 930921 BUSINESS BRIEF ATLAS CORP MINING COMPANY'S BAILOUT BY CANADIANS COMES TO CLOSE ATLAS CORP SAID IT CLOSED ITS BAILOUT BY CANADIAN INVESTORS AND TURNED CONTROL OF THE TROUBLED MINING CONCERN'S BOARD OVER TO PHOENIX FINANCIAL HOLDINGS INC OF TORONTO PHOENIX PRESIDENT DAVID J BIRKENSHAW WAS NAMED ATLAS' CHAIRMAN AND CHIEF EXECUTIVE JOINING MR BIRKENSHAW ON ATLAS' RECONSTITUTED BOARD WERE THREE OTHER DIRECTORS DESIGNATED BY PHOENIX JAMES D BEATTY DAVID P HALL AND DAVID A KNIGHT DOUGLAS R COOK AND EDGAR M MASINTER WERE REELECTED TO THE SIXMEMBER BOARD ATLAS BASED IN DENVER SAID IT COMPLETED THE 84 MILLION SALE TO PHOENIX OF 15 MILLION SHARES OF COMMON STOCK A REDEEMABLE CONVERTIBLE DEBENTURE DUE 1998 IN THE PRINCIPAL AMOUNT OF 35 MILLION AND WARRANTS TO BUY TWO MILLION SHARES OF ATLAS COMMON STOCK AT 3625 SHARE WITHIN THREE YEARS WITHOUT THE INFUSION THE COMPANY HAD SAID IT WOULDN'T HAVE HAD ENOUGH FUNDS TO CONTINUE OPERATIONS 9309210023 930921 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN PACE OF LAYOFFS OFFERS LITTLE REASON FOR OPTIMISM LABOR SECRETARY REICH SAYS THE ECONOMY HAS STARTED TO SLOWLY CREATE NET NEW JOBS BUT IT WILL TAKE A MAJOR JOBCREATING MACHINE TO COMBAT A STREAM OF UGLY NEW DATA CHALLENGER GRAY & CHRISTMAS A CHICAGO OUTPLACEMENT FIRM SAYS THE 400000 LAYOFFS FOR THE FIRST EIGHT MONTHS OF THIS YEAR WERE 20 HIGHER THAN THE FIRST NINE MONTHS OF RECESSIONARY 1991 HARDEST HIT WERE THE AEROSPACE COMPUTER AND RETAIL SECTORS THE FIRM REPORTS SOME 41 STATES AND THE DISTRICT OF COLUMBIA HAD HIGHER UNEMPLOYMENT IN JULY THAN A YEAR EARLIER ACCORDING TO THE BUREAU OF LABOR STATISTICS UTAH NEW MEXICO AND NEVADA LED A DOZEN STATES THAT SAW THEIR UNEMPLOYMENT RATES JUMP AT LEAST TWO PERCENTAGE POINTS GO MIDWEST YOUNG MAN THE LOWEST METROPOLITAN UNEMPLOYMENT RATES WERE IN SIOUX FALLS SD IOWA CITY IOWA AND MADISON WIS ALL HAD JOBLESSNESS 2 OR LOWER THE LABOR DEPARTMENT REPORTS CONSTRUCTION HIRING STAYS WEAK BUT BRIGHT SPOTS BEGIN TO EMERGE THE WORKLOAD FOR THE SPRING LOOKS VERY LIMITED IN ONE WORD BLEAK LAMENTS DON DEMENIEK HEAD OF SEMFORD GENERAL CONTRACTORS IN CRESTWOOD ILL WHICH MOSTLY DOES PUBLICLY FUNDED WORK TURNER CONSTRUCTION IN NEW YORK CALLS THE OUTLOOK SPOTTY BRIEF UPTURNS DON'T SEEM TO SUSTAIN THEMSELVES SAYS THE COMPANY'S RALPH JOHNSON PERINI CORP OF FRAMINGHAM MASS SEES FEW JOBS GAINS BUT GRANITE CONSTRUCTION IN WATSONVILLE CALIF EXPECTS TO BOOST HIRING 30 NEXT YEAR AFTER A FLAT 1993 IT NEEDS WORKERS FOR HIGHWAY JOBS IN CALIFORNIA TEXAS AND NEVADA RESIDENTIAL CONSTRUCTION SHOWS A FEW SIGNS OF LIFE LEWIS HOMES MANAGEMENT EXPECTS ITS CONTRACTORS TO HIRE LABORERS IN NEVADA WHERE IT REPORTS HAVING AN OUTSTANDING YEAR BECAUSE OF THE STRONG LAS VEGAS AND RENO ECONOMIES DOCTORS GRUMBLE OVER THE WHITE HOUSE PLAN TO REVAMP HEALTH CARE THE QUALITY OF CARE IS GOING TO DECLINE IF LOWER FEES FORCE DOCTORS TO TAKE ON MORE PATIENTS SAYS GREAT NECK NY OBSTETRICIAN ELLEN FARKAS PEOPLE WILL HAVE LONGER WAITS AS DOCTORS CUT BACK ON STAFF WARNS PHILADELPHIA NEUROLOGIST STEPHEN SILBERSTEIN THIS WILL PROBABLY MEAN MEDICAL CARE WILL BECOME MORE GENERIC SAYS PITTSBURGH DERMATOLOGIST NANCY NIELAND DEARBORN MICH INTERNIST GEORGE HAWROT EXPECTS TO INCREASE HIS PATIENT LOAD TO MEET EXPENSES WHICH HE ESTIMATES RUN ABOUT 60 OF CHARGES SAMUEL GOLDEN IV A PITTSBURGH INTERNIST EXPECTS TO JOIN AN HMO REGARDLESS OF WHETHER THE CLINTON PLAN GOES THROUGH AS A RESULT OF INCREASED PATIENT INTEREST IN HMOS I DON'T THINK I CAN SURVIVE WITHOUT JOINING ONE HE SAYS DOCTORS AND OTHERS WILL GET A CHANCE TO PORE OVER DETAILS OF THE PLAN TOMORROW WHEN THE WHITE HOUSE UNVEILS THE FORMAL PROPOSAL AND THE PRESIDENT ADDRESSES THE NATION THE HIRING OUTLOOK MAY BE BLEAK BUT THE WORK ENVIRONMENT IS GETTING NICER HALF OF THE FACILITY MANAGERS SURVEYED RECENTLY SAY THEIR BUDGETS ROSE THIS YEAR FROM LAST ACCORDING TO THE INTERNATIONAL FACILITY MANAGEMENT ASSOCIATION IN THE PAST YEAR NEARLY ALL BOUGHT COMPUTERS FOR THEIR COMPANIES AND 75 PURCHASED ERGONOMIC SEATING KEEP THOSE FORMS COMING PEOPLE FILE HEALTH INSURANCE CLAIMS 60 MORE OFTEN THAN THEY DID A DECADE AGO A STUDY BY NORTHWESTERN NATIONAL LIFE SHOWS EIGHT OF 10 PEOPLE COVERED BY THE COMPANY FILED CLAIMS LAST YEAR COMPARED WITH FIVE OF 10 SEEKING REIMBURSEMENT IN 1982 AMONG THE REASONS THE FIRM SAYS HIGHER COSTS MEAN CLAIMANTS REACH DEDUCTIBLES FASTER AND FAMILIES WITH TWO WORKING PARENTS DEAL WITH SICKNESS EARLIER TO AVOID LOST INCOME IF ONLY THEY COULD SCREEN THEIR NEWCOMERS AMONG QUESTIONS ASKED OF THE RICHMOND VA ECONOMICDEVELOPMENT COUNCIL IN CONNECTION WITH PROSPECTIVE EMPLOYEE RELOCATIONS IS THERE A BAGPIPE GROUP AND ARE THERE ANY APARTMENT BUILDINGS THAT WOULD ACCEPT A FERRET IS THE GLASS 89 EMPTY OR 11 FULL ASSESSMENTS VARY ON THE FUTURE OF UNIONS WILLIAM BYWATER HEAD OF THE ELECTRICAL WORKERS' UNION PROJECTS THAT THE COMING YEAR OR TWO WILL SEE A SLIGHT EROSION IN THE 11 OF PRIVATECOMPANY WORKERS REPRESENTED BY ORGANIZED LABOR BUT AN INCREASE WILL FOLLOW HE SAYS COMPANIES WILL ALWAYS TREAT THEIR EMPLOYEES BADLY AS LONG AS THAT GOES ON THERE WILL ALWAYS BE A CHANCE TO ORGANIZE SAYS THE HEAD OF THE 150000MEMBER UNION WHOSE OWN HEAD COUNT HAS HALVED IN RECENT YEARS RUTGERS UNIVERSITY PROFESSOR LEO TROY COUNTERS THAT ORGANIZED LABOR WAS A 20THCENTURY PHENOMENON HE SURMISES THAT MEMBERSHIP WILL DECLINE TO 7 BY THE END OF THE CENTURY JUST WHERE IT WAS AT THE TURN OF THIS CENTURY THE UNION MOVEMENT IN THE PRIVATE SECTOR WILL CONTINUE TO HEMORRHAGE HE PREDICTS ONLY PUBLICEMPLOYEES UNIONS ARE VIBRANT THEY HAVE NO COMPETITION AND NOW MAKE UP 40 OF THE ORGANIZED WORKERS PROFESSOR TROY SAYS THE CHECKOFF NEWS RELEASES WE NEVER FINISHED READING PART I ACTUARIES ONCE THOUGHT OF AS BACKROOM INSURANCE TYPES ARE NOW INVOLVED IN TODAY'S MOST IMPORTANT ISSUES NEWS RELEASES WE NEVER FINISHED READING PART II A TEMPORARYHELP FIRM TOUTS ITS POLL SHOWING THAT HALF OF TEMPS ARE BROUGHT IN TO STAFF SHORTTERM PROJECTS AND TO ASSIST WHEN WORKLOADS PEAK EMPLOYMENT WAS HIGHER IN JULY THAN A YEAR EARLIER IN 41 STATES AND THE DISTRICT OF COLUMBIA WITH THE LARGEST GAINS IN UTAH NEW MEXICO AND NEVADA TUESDAY'S LABOR LETTER INCORRECTLY REPORTED THE CHANGES AS INCREASES IN UNEMPLOYMENT 9309210022 930921 REVIEW & OUTLOOK EDITORIAL ASIDES PAYING FOR THE PLAN THE WHITE HOUSE WAS COY YESTERDAY ABOUT WHETHER PRESIDENT CLINTON IN HIS BIG HEALTHCARE SPEECH TOMORROW NIGHT WOULD TALK ABOUT HOW HE'S GOING TO PAY FOR IT THAT MEANS THE ONLY TAX ON THE TABLE SO FAR IS HIS PLAN TO IMPOSE WHAT ARE KNOWN AS SIN TAXES ON CIGARETTES AND MAYBE ALCOHOL LEAVING ASIDE THE EFFICACY OF TRYING TO RAISE REVENUE BY MAKING SOMETHING UNAFFORDABLE WE CAN'T HELP BUT BE STRUCK AT THE QUAINTNESS OF CALLING THESE ACTIVITIES SIN SHADES OF REEFER MADNESS HEAVENS LET'S AT LEAST TRY TO MAKE NOTIONS OF SIN REFLECT THE MODERN ETHOS WHY NOT IMPOSE A SIN TAX INSTEAD ON SAY HATE SPEECH AGRICULTURAL CHEMICALS OR CHEESEBURGERS AT MCDONALD'S BESIDES MANY PEOPLE USE CIGARETTES AND ALCOHOL MAINLY TO UNWIND SOME OF THE STRESS OF MODERN LIFE IF THE CLINTONS ARE GOING TO TAX AWAY THESE RELAXANTS DON'T BE SURPRISED IF THEIR BASIC HEALTH COVERAGE SCHEME COMES TO INCLUDE BIOFEEDBACK MACHINES AND TAICHI CLASSES 9309210021 930921 REVIEW & OUTLOOK EDITORIAL CHOICE REALITY WANT TO READ A GOOD TALE OF WHAT GOES AROUND COMES AROUND IT WOULD BE HARD TO TOP THIS ONE BACK IN 1961 THE STATE OF GEORGIA ENACTED A LAW IN PART TO OFFER AN EXIT FOR PARENTS WHO DIDN'T WANT TO SEND THEIR CHILDREN TO DESEGREGATED SCHOOLS THE LONGFORGOTTEN LAW REQUIRES THE STATE TO GIVE TUITION SCHOLARSHIPS TO PARENTS WITH CHILDREN WHO ATTEND PRIVATE SCHOOLS TODAY THE LAW'S MOST AVID SUPPORTERS ARE MINORITY PARENTS WHO WANT TO REMOVE THEIR CHILDREN FROM FAILING VIOLENCEPRONE PUBLIC SCHOOLS WE NOW HAVE A CHANCE TO TURN SOMETHING BORN IN A DARKER HISTORICAL ERA AND TURN IT INTO A BRIGHT OPPORTUNITY FOR CHILDREN OF ALL RACES SAYS STATE SENATOR ROY ALLEN A BLACK DEMOCRAT FROM SAVANNAH GLENN DELK AN ATLANTA ATTORNEY FOUND THE LAW WHILE RUMMAGING THROUGH OLD GEORGIA STATUTE BOOKS AND HIS DISCOVERY HAS SET OFF A FIRESTORM IN GEORGIA MOST EXPERTS AGREE THE LAW IS VALID NOW THE BATTLE IS OVER WHETHER GEORGIA WILL USE THE LAW TO BECOME A MODEL FOR EDUCATIONAL REFORM OR REPEAL IT AND STICK WITH THE STATUS QUO THE STATE'S POLITICAL ESTABLISHMENT IS SCRAMBLING TO DECLARE THE VOUCHER LAW INVALID AT FIRST THEY CLAIMED NO REGULATIONS WERE EVER WRITTEN TO IMPLEMENT IT THOSE HAVE NOW BEEN FOUND THEN THEY CLAIMED THAT NO PARENTS EVER RECEIVED TUITION GRANTS BUT SEVERAL PARENTS HAVE COME FORWARD TO SAY THEY CASHED STATE CHECKS AND A 1963 ATLANTA CONSTITUTION ARTICLE REPORTED THAT 1200 GRANTS WERE APPROVED THAT YEAR WHAT'S MORE A CURRENTLY FUNDED 20 MILLION STATE PROGRAM PAYS TUITION FOR STUDENTS IN PRIVATE COLLEGES IN GEORGIA IF STATE MONEY NOW GOES TO PRIVATESCHOOL STUDENTS OVER THE AGE OF 18 WHY IS IT IMPROPER TO GIVE IT TO KIDS 18 AND UNDER DEMOCRATIC GOVERNOR ZELL MILLER WAS ONE OF THE FIRST OFFICIALS TO DECLARE THE LAW A DEAD LETTER HOWEVER IT WAS DISCOVERED THAT IN 1961 HE VOTED FOR IT AS A YOUNG STATE LEGISLATOR AND AS GOVERNOR IN 1992 HE SIGNED A TECHNICAL AMENDMENT TO THE LAW HE SAYS NOW THAT HE OPPOSES IT HOW WAS IT THAT THE LAW REMAINED UNKNOWN FOR SO LONG SOMETIME IN THE 1960S THE STATE STOPPED ISSUING CHECKS AND SINCE THEN OFFICIALS HAVE TRIED TO FORGET THE LAW WAS EVEN ON THE BOOKS NOW THAT THE NEWS IS OUT PARENTS ARE MOBILIZING TO FORCE THE STATE TO IMPLEMENT IT THE REACTION THEY'RE GETTING SHOWS HOW MUCH THE STATUS QUO RESISTS COMPETITION IN EDUCATION SCHOOL DISTRICTS ARE ALREADY REJECTING APPLICATIONS FOR GRANTS SAYING THEY HAVE NO INTENTION OF ENFORCING THE LAW MR DELK ACCOMPANIED A GROUP OF PARENTS TO THE ATLANTA BOARD OF EDUCATION TO SUPPORT THEIR REQUEST FOR TUITION GRANTS ATLANTA'S SCHOOLS SPEND AN AVERAGE OF 6500 PER PUPIL PER YEAR YET 50 OF ITS GRADUATES WHO ENTER COLLEGE REQUIRE REMEDIAL HELP DURING A STORMY SESSION BOARD MEMBER DF GLOVER CALLED MR DELK AND HIS SUPPORTERS RACISTS AT THAT BLACK PARENTS IN THE AUDIENCE STOOD AND BOOED MR GLOVER I'M TIRED OF THE RUDE AND ARROGANT TREATMENT I GET FROM PUBLIC SCHOOL OFFICIALS SAYS DAWNA HILL A SINGLE PARENT WHO BELIEVES THAT HER CHILD IS IN PHYSICAL DANGER AT HER LOCAL PUBLIC SCHOOL I PAY TAXES AND I JUST WANT SOME OF THAT MONEY BACK SO MY CHILD CAN HAVE A QUALITY EDUCATION EDUCATION VOUCHERS MAY BECOME A MAJOR ISSUE IN ATLANTA'S NOVEMBER ELECTIONS ROBB PITTS A BLACK ATLANTA CITY COUNCILMAN HAS ASKED FOR A SPECIAL HEARING ON THE VOUCHER ISSUE BUT HIS REQUEST WAS REJECTED BY CITY COUNCIL PRESIDENT MARVIN ARRINGTON DICK WILLIAMS AN ATLANTA JOURNAL COLUMNIST NOTES THAT ALL THREE MAJOR CANDIDATES FOR MAYOR HAVE SENT OR ARE SENDING THEIR CHILDREN TO PRIVATE SCHOOLS HE PLANS TO ASK THEM DURING AN UPCOMING DEBATE WHETHER THEY WANT TO DENY A SIMILAR CHOICE TO ATLANTA PARENTS WHO LACK THEIR FINANCIAL MEANS THE GEORGIA PUBLIC POLICY FOUNDATION PLANS TO SURVEY EVERY ELECTED OFFICIAL IN THE STATE TO DETERMINE WHERE THEY SEND THEIR OWN CHILDREN TO SCHOOL SENATOR ALLEN THINKS THE ISSUE OF EDUCATIONAL CHOICE SHOULD BE INCLUDED IN ANY DEBATE ON HELPING AMERICA'S INNER CITIES WITH A GOOD EDUCATION AND SOUND MORAL VALUES THE NEXT GENERATION CAN DO BETTER HE SAYS WITHOUT THAT THE PROBLEMS WE NOW HAVE WILL ONLY GET WORSE BOTH MR ALLEN'S WIFE AND FATHER ARE FORMER PUBLIC SCHOOL TEACHERS AND HE THINKS THAT FULL EDUCATIONAL CHOICE CAN FORCE THE PUBLIC SCHOOLS TO IMPROVE WE'VE TRUSTED THE BUREAUCRACY TO REFORM THE SCHOOLS AND THEY HAVEN'T DONE THE JOB HE TOLD US IT'S TIME WE TALKED ABOUT TRUSTING PARENTS TO MAKE THE DECISION ON WHAT SCHOOL IS BEST FOR THEIR CHILDREN 9309210020 930921 BUSINESS BRIEF CONSOLIDATED RAIL CORP SUIT CONTESTS PROPERTY TAXES ASSESSED BY NEW YORK STATE CONSOLIDATED RAIL CORP PHILADELPHIA SAID IT IS SUING NEW YORK STATE FOR ALLEGEDLY TAXING ITS NEW YORK PROPERTIES AT HIGHER LEVELS THAN OTHER COMMERCIAL AND INDUSTRIAL PROPERTIES NEW YORK'S ASSESSMENT OF CONRAIL'S RAIL TRANSPORTATION PROPERTY REPRESENTS NEARLY A 70 INCREASE IN ITS OWN ASSESSMENTS IN A SINGLE YEAR THE FREIGHT AND RAIL COMPANY SAID THAT ASSESSMENT IT CHARGES RESULTS IN TOTAL TAXES THAT VIOLATE THE FEDERAL RAILROAD REVITALIZATION AND REGULATORY REFORM ACT OF 1976 THE ACT REQUIRES THAT THE RATIO OF THE ASSESSED VALUE OF RAIL TRANSPORTATION PROPERTY TO ITS TRUE MARKET VALUE NOT EXCEED THE SAME RATIO FOR ALL OTHER COMMERCIAL AND INDUSTRIAL PROPERTY IN THE SAME JURISDICTION CONRAIL SAID IT HAS ASKED THE US COURT FOR THE SOUTHERN DISTRICT OF NEW YORK TO ALLOW IT TO PAY ONLY ITS UNDISPUTED TAXES ABOUT 20 MILLION WHEN DUE AND DEPOSIT THE DISPUTED AMOUNT ABOUT 12 MILLIONINTO ESCROW UNTIL THE CLAIM IS RESOLVED NEW YORK STATE OFFICIALS COULD NOT BE REACHED FOR COMMENT 9309210019 930921 BUSINESS BRIEF PARK ELECTROCHEMICAL CORP FIRM SUSPENDS EXECUTIVE AND DISMISSES ANOTHER PARK ELECTROCHEMICAL CORP LAKE SUCCESS NY SAID IT SUSPENDED ONE EXECUTIVE AND DISMISSED ANOTHER IN ITS ADVANCED COMPOSITE UNIT AFTER DISCOVERING FINANCIAL IRREGULARITIES THE COMPANY SAID THE CHIEF EXECUTIVE OFFICER OF ITS FIBERCOTE INDUSTRIES INC UNIT WAS SUSPENDED FOLLOWING DISCOVERY OF FINANCIAL AND ACCOUNTING IRREGULARITIES PARK SAID IT MAY HAVE A PRETAX 13 MILLION CHARGE TO WRITE OFF IMPROPERLY RECORDED RECEIVABLES AND RECORD PREVIOUSLY UNRECOGNIZED EXPENSES FIBERCOTE'S CHIEF FINANCIAL OFFICER WAS DISMISSED THE COMPANY SAID PARK ALSO SAID PRELIMINARY RESULTS FOR THE SECOND QUARTER SHOW NET INCOME OF 15 MILLION OR 38 CENTS A SHARE ON 469 MILLION IN SALES EXCLUDING THE POSSIBLE PRETAX CHARGE A YEAR EARLIER NET INCOME WAS 770000 OR 17 CENTS A SHARE ON 441 MILLION IN SALES PARK MAKES HIGHTECH ELECTRONIC MATERIALS COMPOSITES INDUSTRIAL ADHESIVES AND PLUMBING HARDWARE 9309210018 930921 BUSINESS BRIEF QUAKER CHEMICAL CORP CONCERN SEES PROFIT FALLING BELOW ANALYST ESTIMATES QUAKER CHEMICAL CORP SAID IT EXPECTS EARNINGS FOR THE THIRD QUARTER AND YEAR TO BE LOWER THAN ANALYST ESTIMATES REFLECTING THE EFFECTS OF A CONTINUING RECESSION IN EUROPE THE CONSHOHOCKEN PA MAKER OF SPECIALTY CHEMICAL PRODUCTS SAID WEAK DEMAND IN EUROPE WHICH LAST YEAR ACCOUNTED FOR 39 OF SALES WILL CAUSE EARNINGS TO BE LESS THAN ANALYST ESTIMATES BEFORE SPECIAL CHARGES OF 16 CENTS A SHARE FOR THE THIRD QUARTER AND 85 CENTS FOR THE YEAR JOSEPH SPANIEL QUAKER'S VICE PRESIDENT AND CORPORATE CONTROLLER SAID THE COMPANY EXPECTS NET INCOME FOR THE THIRDQUARTER AND YEAR TO BE SUBSTANTIALLY BELOW YEAREARLIER LEVELS OF 32 MILLION OR 35 CENTS A SHARE AND 121 MILLION OR 133 A SHARE RESPECTIVELY HE SAID HE EXPECTS THE COMPANY TO BE PROFITABLE BARRING ANY UNEXPECTEDLY LARGE RESTRUCTURING CHARGES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY QUAKER SHARES CLOSED AT 1775 DOWN 125 9309210016 930921 WHAT'S NEWS WORLDWIDE A DOCTORS' GROUP ANNOUNCED ITS SUPPORT FOR CLINTON'S HEALTHCARE PLAN THE NATION'S SECONDLARGEST PHYSICIANS' ORGANIZATION ENDORSED THE PLAN AS A MODERATE AND UNIQUELY AMERICAN APPROACH TO REFORM THE SUPPORT OF THE AMERICAN COLLEGE OF PHYSICIANS WAS ANNOUNCED DURING A WHITE HOUSE BREAKFAST AT WHICH C EVERETT KOOP SURGEON GENERAL UNDER REAGAN ASKED 100 PROMINENT DOCTORS FOR THEIR COOPERATION MEANWHILE THE HEAD OF THE REPUBLICAN PARTY URGED GOP LEADERS TO ATTACK THE PROPOSED REFORMS THE WHITE HOUSE PRESS SECRETARY LEFT OPEN THE POSSIBILITY CLINTON MAY DELIVER HIS HEALTHCARE SPEECH TO CONGRESS TOMORROW NIGHT WITHOUT MAKING FINAL DECISIONS ON HOW TO PAY FOR THE PROGRAM THE US PLEDGED 250 MILLION TO BOLSTER ISRAELIPALESTINIAN PEACE EFFORTS THE AID WOULD COMPRISE 150 MILLION IN TECHNICAL ASSISTANCE AND 100 MILLION IN LOAN GUARANTEES A SENIOR US OFFICIAL SAID THE US ALSO PLANS TO CONVENE A CONFERENCE OF POTENTIAL DONOR NATIONS SOON TO COORDINATE RAISING ABOUT 3 BILLION TO INVEST IN GAZA AND THE WEST BANK SECRETARY OF STATE WARREN CHRISTOPHER WHO ANNOUNCED THE MEETING SAID IF PEACE IS TO BE ACHIEVED THE AGREEMENT MUST BE TRANSLATED INTO RESULTS QUICKLY AND VIVIDLY ISRAELI PLANES BLASTED AN UNDERGROUND HEZBOLLAH BASE IN SOUTHERN LEBANON IN RETALIATION FOR FIVE GUERRILLA ATTACKS LEBANESE SECURITY SOURCES SAID INTERNATIONAL MEDIATORS CALLED OFF A MEETING OF BOSNIA'S ETHNIC LEADERS SCHEDULED FOR TOMORROW SAYING THE WARRING FACTIONS HADN'T SHOWN SUFFICIENT FLEXIBILITY IN THEIR NEGOTIATING POSITIONS MEANWHILE MUSLIM TROOPS UNDER SIEGE IN MOSTAR LAUNCHED A THREEPRONGED ATTACK ON CROAT FORCES ENCIRCLING THE SOUTHERN CITY SEPARATIST FIGHTERS BROKE THROUGH THE OUTER DEFENSES OF SUKHUMI CAPITAL OF GEORGIA'S BREAKAWAY BLACK SEA PROVINCE OF ABKHAZIA THE REBELS DEMANDED THAT THE FORCES OF THE SHEVARDNADZE GOVERNMENT ABANDON THE CITY SAYING FURTHER RESISTANCE WAS USELESS A NIGHT OF MISSILE ATTACKS LEFT HOUSES ALONG SUKHUMI'S SHORELINE IN FLAMES FOODSAFETY PROPOSALS WILL BE UNVEILED TODAY BY THE CLINTON ADMINISTRATION AS EXPECTED THE HEART OF THE NEW REGULATORY SCHEME WOULD BE A UNIFORM SAFETY STANDARD FOR BOTH RAW AND PROCESSED FOODS THAT WOULD REQUIRE REASONABLE CERTAINTY OF NO HARM CHINA BOWED TO INTERNATIONAL PRESSURE BY AGREEING TO ALLOW A HUMANRIGHTS INVESTIGATION JUST DAYS BEFORE AN EXPECTED DECISION ON BEIJING'S BID TO HOST THE OLYMPICS IN THE YEAR 2000 MEANWHILE A CHINESE OFFICIAL MADE AN EMOTIONAL APPEAL FOR FAIR PLAY TOWARD CHINA THE INTERNATIONAL OLYMPIC COMMITTEE IS TO SELECT THE HOST CITY ON THURSDAY A PRESIDENTIAL CANDIDATE HAS URGED GERMANS TO PUT THEIR NAZI PAST AND THE HOLOCAUST BEHIND THEM INFURIATING JEWS AND MANY POLITICIANS STEFFEN HEITMANN PICKED BY CHANCELLOR KOHL TO RUN AS THE CHRISTIAN DEMOCRATIC CANDIDATE NEXT YEAR ACKNOWLEDGED THAT THE TERRIBLE HISTORY WOULD REMAIN PART OF GERMANY'S HERITAGE UN SOLDIERS STRUGGLED TO GAIN CONTROL OF A NOTORIOUSLY DANGEROUS ROAD RUNNING THROUGH MOGADISHU'S DENSELY POPULATED TOKYO DISTRICT WHERE FUGITIVE SOMALI CLAN LEADER AIDID MAY BE HIDING SEPARATELY SOMALI GUNMEN SHOT AND SERIOUSLY WOUNDED A PAKISTANI PEACEKEEPER DURING A DAWN ASSAULT IN THE CAPITAL GEORGIA'S PAROLE BOARD GRANTED PROBATION FOR A 17YEAROLD BOY SENTENCED TO THREE YEARS IN PRISON FOR STEALING ICE CREAM BARS FROM A SCHOOL THE 11THGRADER WHO SERVED 10 DAYS OF HIS SENTENCE WAS ORDERED TO FINISH HIGH SCHOOL AND TO TUTOR ONE PERSON CRITICS SAID THE CASE IN RURAL THOMASTON UNDERSCORED THE HARSH SENTENCES GIVEN TO BLACKS SCATTERED FIGHTING WAS REPORTED IN ANGOLA LATE YESTERDAY AS UNITA REBELS APPROACHED A SELFIMPOSED DEADLINE TO HALT ALL HOSTILITIES BY MIDNIGHT THE UN SECURITY COUNCIL HAS GIVEN UNITA'S LEADERS UNTIL SATURDAY TO JOIN PEACE TALKS WITH THE GOVERNMENT OR FACE A FUEL AND ARMS EMBARGO A THREEMEMBER US DELEGATION ARRIVED IN HAITI TO HELP PROMOTE A UNBACKED PEACE PLAN THAT IS THREATENED BY A RASH OF POLITICAL SLAYINGS THE GROUP INCLUDES ALEXANDER WATSON AN ASSISTANT US SECRETARY OF STATE WHO REPORTEDLY WILL MEET WITH ARMY LEADERS UN OFFICIALS HAVE BLAMED MILITARY AUXILIARY FORCES FOR THE VIOLENCE 9309210015 930921 WHAT'S NEWS BUSINESS AND FINANCE QVC OFFERED 95 BILLION FOR PARAMOUNT CHALLENGING THE 75 BILLION AGREEMENT WITH VIACOM TO ACQUIRE PARAMOUNT AND SETTING THE STAGE FOR A 1980SSTYLE TAKEOVER BATTLE THE BATTLE PITS THE MOST POWERFUL FIGURES IN THE ENTERTAINMENT INDUSTRY AGAINST EACH OTHER IN A CONTEST FOR ONE OF THE FEW REMAINING INDEPENDENT US ENTERTAINMENT AND MEDIA COMPANIES THE DOW JONES INDUSTRIALS SANK 3745 POINTS TO 357580 AMID RISING INTEREST RATES AND JITTERS ABOUT CORPORATE PROFITS BOND PRICES DROPPED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 3/4 POINT TO YIELD 61 TAMBRANDS' BOARD ABANDONED ITS EFFORTS TO SELL THE COMPANY AND SAID IT PLANS TO ANNOUNCE A NEW TOP MANAGEMENT STRUCTURE IN THE NEAR FUTURE THE NEWS ENDS MONTHS OF SPECULATION PAIRING THE TAMPAX TAMPON MAKER WITH A NUMBER OF CONSUMERPRODUCTS GIANTS THE BANK OF JAPAN CUT ITS DISCOUNT RATE TO 175 FROM 25 IN AN EFFORT TO SPUR THE COUNTRY'S FALTERING ECONOMY AND CURB THE STRONG YEN THE ACTION IS SURE TO PLEASE THE US GOVERNMENT WHICH WANTS JAPAN TO STIMULATE ITS ECONOMY THEREBY INCREASING ITS APPETITE FOR IMPORTS OF US GOODS NIKE SAID PROFIT FELL 7 IN ITS FIRST QUARTER AND PREDICTED A DROP IN REVENUE AND EARNINGS FOR THE YEAR ITS STOCK FELL 175 OR 36 TO 4625 NIKE BLAMED THE QUARTER'S PROFIT DROP ON THE WEAKENING DOLLAR AND THE RETROACTIVE RISE IN CORPORATE TAX RATES MARSHALL & ILSLEY AGREED TO ACQUIRE VALLEY BANCORP FOR STOCK VALUED AT ABOUT 805 MILLION IN ANOTHER MAJOR BANKING INDUSTRY CONSOLIDATION GENERAL MOTORS' PROSPECTS FOR UNION HELP IN ITS NORTH AMERICAN TURNAROUND EFFORT ARE GROWING DIMMER AS INDUSTRY LABOR TALKS MOVE TO CHRYSLER IN THE US AND GM IN CANADA THE WHITE HOUSE IS SCRAMBLING TO FIND MONEY FOR A 5 BILLION WORKER RETRAINING PROGRAM SEEN AS ESSENTIAL TO GETTING THE NORTH AMERICAN FREE TRADE ACCORD APPROVED BY CONGRESS KIDDER PEABODY PLANS TO HIRE MICHAEL MADDEN ITS EXBANKING CHIEF TO BE EXECUTIVE MANAGING DIRECTOR EC MINISTERS STRUCK A COMPROMISE WITH FRANCE BY AGREEING TO HOLD TALKS WITH THE US ABOUT A DISPUTED FARM SUBSIDY ACCORD BUT THE MINISTERS REFUSED TO EMBRACE FRANCE'S DEMAND FOR A FORMAL RENEGOTIATION OF THE ACCORD MORE THAN HALF OF EUROPE'S LARGEST CORPORATIONS PLAN TO CUT THEIR WORK FORCES IN THE NEXT TWO YEARS AS GLOBAL COMPETITION AND HIGH WAGE RATES TAKE THEIR TOLL A SURVEY SHOWS WANG LABS' REORGANIZATION PLAN WAS CONFIRMED BY A BANKRUPTCYCOURT JUDGE CLEARING THE WAY FOR WANG TO EMERGE FROM CHAPTER 11 PROTECTION BANQUE NATIONALE DE PARIS PLANS TO REPORT SHARPLY LOWER PROFIT THIS YEAR ITS CHAIRMAN WARNED AT A MEETING TO LAUNCH THE BANK'S PRIVATIZATION BNP PLANS TO BUILD ON EXISTING COOPERATION AGREEMENTS WITH TWO OTHER BANKS AS PART OF A STRATEGY TO RESTORE ACCEPTABLE LEVELS OF PROFITABILITY BY 1995 THE CHAIRMAN OF A LEADING JAPANESE CONSTRUCTION COMPANY WAS ARRESTED FOR ALLEGEDLY MAKING BRIBES TO GET BIDS FOR PUBLIC WORKS PROJECTS A CONSTRUCTIONINDUSTRY PROBE COMES AS THE US IS PRESSING TOKYO TO END CLOSE COOPERATION BETWEEN THE COUNTRY'S BIG BUILDERS AND GOVERNMENT OFFICIALS BONDS LEHMAN BROTHERS TREASURY INDEX 557517 OFF 2914 COMMODITIES OIL 1770 A BARREL UP 63 CENTS DOW JONES FUTURES INDEX 12689 UP 036 SPOT INDEX 12069 OFF 113 DOLLAR 10468 YEN UP 023 16112 MARKS OFF 00034 9309210014 930921 DIGITAL COMMUNICATIONS LETS BID DEADLINE PASS ALPHARETTA GA DIGITAL COMMUNICATIONS ASSOCIATES INC LET PASS A MONDAY DEADLINE FOR RESPONDING TO A TAKEOVER BID VALUED AT ABOUT 187 MILLION FROM A NEW YORK INVESTMENT FIRM NEWS OF THE TAKEOVER BID HELPED PUSH DIGITAL'S SHARE PRICE UP 26 YESTERDAY TO 17125 A GAIN OF 350 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE A SPOKESMAN FOR DIGITAL SAID THE COMPANY IS CONTINUING TO DISCUSS THE ACQUISITION PROPOSAL AND MIGHT HAVE A RESPONSE TODAY THE OFFER BY WELSH CARSON ANDERSON & STOWE WAS FIRST MADE LATE FRIDAY AND DISCLOSED BY DIGITAL YESTERDAY THE INVESTMENT FIRM PROPOSED ACQUIRING DIGITAL FOR 1850 A SHARE DIGITAL A MAKER OF COMMUNICATIONS EQUIPMENT HAS ABOUT 101 MILLION COMMON SHARES OUTSTANDING AT THE TIME OF ITS ORIGINAL OFFER WELSH CARSON SAID THE BID WOULD EXPIRE AT 5 PM YESTERDAY AT ABOUT 6 PM YESTERDAY A SPOKESMAN FOR DIGITAL SAID THE COMPANY'S BOARD WAS STILL CONSIDERING THE PROPOSAL THE SPOKESMAN DECLINED TO DISCUSS THE DEADLINE OFFICIALS AT WELSH CARSON WERE UNAVAILABLE FOR COMMENT FOR ITS FISCAL FOURTH QUARTER ENDED JUNE 30 DIGITAL REPORTED A NET LOSS OF 72 MILLION OR 71 CENTS A SHARE ON REVENUE OF 64 MILLION DIGITAL SAID THE LOSS REFLECTED ITS DECISION TO RESTRUCTURE AND SELL ITS PACIFIC DATA PRODUCTS SUBSIDIARY A MAKER OF PRINTER PRODUCTS 9309210013 930921 MERGER SET FOR 2 NETWORKS INVOLVED IN FUNDS TRANSFER NEW YORK OPERATORS OF TWO LARGE FUNDSTRANSFER NETWORKS SAID THEY PLAN TO MERGE THEIR ELECTRONICPAYMENT OPERATIONS INTO A SYSTEM SERVING 23 MILLION CUSTOMERS AND 1300 FINANCIAL INSTITUTIONS THE ASYETUNNAMED COMPANY WILL COMBINE THE NEW YORKBASED NYCE NETWORK WITH CONNECTICUTBASED YANKEE 24 NETWORK THE TWO NETWORKS COVER ABOUT 13000 AUTOMATIC TELLER MACHINES AND MORE THAN 33000 POINTOFSALE TERMINALS IN 24 STATES AND PUERTO RICO TOGETHER THEY HANDLE MORE THAN 12 BILLION TRANSACTIONS A YEAR THE NYCE BANKING SYSTEM INCLUDES BANK OF NEW YORK BAYBANKS CHASE MANHATTAN BANK CHEMICAL BANK FLEET FINANCIAL GROUP MARINE MIDLAND BANK AND NATIONAL WESTMINSTER BANK YANKEE 24 MEMBERS INCLUDE BANK OF BOSTON PEOPLE'S BANK OF CONNECTICUT SHAWMUT NATIONAL CORP CITIZENS FINANCIAL GROUP AND FIRST FIDELITY BANCORP 9309210012 930921 BUSINESS BRIEF BROOKE GROUP LTD SUIT CHALLENGES DIVIDEND ALLEGES COMPANY IS INSOLVENT A GROUP OF INVESTORS FILED SUIT AGAINST BROOKE GROUP LTD CLAIMING THAT A PROPOSED DIVIDEND DECLARATION IS ILLEGAL BECAUSE THE COMPANY IS INSOLVENT THE SUIT FILED IN DELAWARE CHANCERY COURT SEEKS TO BLOCK THE PROPOSED DIVIDEND SPINOFF OF A MINORITY STAKE IN BROOKE GROUP'S SKYBOX INTERNATIONAL INC UNIT THE PROPOSED DIVIDEND WOULD BE PAID THURSDAY TO SHAREHOLDERS OF RECORD YESTERDAY THE PROPOSED DIVIDEND WOULD HAVE THE EFFECT OF REDUCING THE COMPANY'S POTENTIAL LIABILITY TO HOLDERS OF CERTAIN BROOKE GROUP SECURITIES CALLED CONTINGENCY VALUE RIGHTS THE RIGHTS' VALUE AT REDEMPTION IS DETERMINED BY A NUMBER OF FACTORS INCLUDING THE VALUE OF DIVIDENDS PAID BY THE COMPANY OVER A CERTAIN PERIOD WHEN ASKED TO RESPOND TO ASSERTIONS THAT THE COMPANY IS INSOLVENT A SPOKESMAN FOR MIAMIBASED BROOKE GROUP WHICH HAS TOBACCO AND TRADINGCARD INTERESTS SAID WE HAVE NO COMMENT 9309210011 930921 BUSINESS BRIEF SAFECARD SERVICES INC HALMOS CITES BOARD MEMBER IN BREACHOFCONTRACT SUIT IN THE LATEST SALVO OF A LONGRUNNING LEGAL BATTLE BETWEEN SAFECARD SERVICES INC CHEYENNE WYO AND PETER HALMOS ITS OUSTED CHAIRMAN AND COFOUNDER MR HALMOS FILED A BREACHOFCONTRACT LAWSUIT IN A STATE COURT IN NEW YORK CITY AGAINST NEW YORK PUBLIC RELATIONS EXECUTIVE ROBERT DILENSCHNEIDER A SAFECARD BOARD MEMBER THE SUIT ALSO NAMES MR DILENSCHNEIDER'S NEW YORK COMPANY THE DILENSCHNEIDER GROUP INC AS A DEFENDANT AND ACCUSES THEM OF BREACH OF CONTRACT UNPROFESSIONAL CONDUCT AND REAPING OF UNJUST ENRICHMENT IN A NEWS RELEASE MR HALMOS SAID DAMAGES COULD TOTAL MORE THAN 50 MILLION THE SUIT ALLEGES THAT MR DILENSCHNEIDER AND HIS COMPANY HIRED IN 1991 FOLLOWING A SERIES OF TROUBLES INCLUDING A 1988 INTERNAL REVENUE SERVICE SEARCH OF COMPANY OFFICES HELPED LEAD A CAMPAIGN TO OUST MR HALMOS WHO RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE IN LATE 1992 MR DILENSCHNEIDER COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9309210010 930921 EXECUTIVES' INSTITUTE DISPUTES CPA PANEL'S ANNUALREPORT STANCE NEW YORK THE FINANCIAL EXECUTIVES INSTITUTE SHARPLY DISAGREED WITH AN ACCOUNTING GROUP'S ASSERTIONS THAT DISCLOSURE IN CORPORATE ANNUAL REPORTS SHOULD BE GREATLY INCREASED TO MAKE THEM MORE RELEVANT TO INVESTORS AND CREDITORS THE FEI AN ASSOCIATION OF 14000 SENIOR FINANCIAL EXECUTIVES FROM 8000 US AND CANADIAN COMPANIES CRITICIZED A REPORT OF THE SPECIAL COMMITTEE ON FINANCIAL REPORTING OF THE 310000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THE COMMITTEE SUBMITTED ITS REPORT TO THE INSTITUTE'S COUNCIL YESTERDAY WHILE FEI SUPPORTS IMPROVED REPORTING AND DISSEMINATION OF FINANCIAL INFORMATION WE QUESTION JUST WHAT IMPROVEMENTS ARE NEEDED THE FEI SAID ADDING THAT IT BELIEVES THE CURRENT REPORTING SYSTEM MEETS THE NEEDS OF USERS OF FINANCIAL STATEMENTS THE FEI SAID IT IS PARTICULARLY CONCERNED THAT OUTSIDE AUDITORS MIGHT LACK THE EXPERTISE TO COMMENT ON CERTAIN FINANCIAL AREAS CITED IN THE COMMITTEE'S REPORT THE ACCOUNTANTS' COMMITTEE RECOMMENDED THAT AUDITORS COMMENT ON RISKS ASSOCIATED WITH REALIZING RECORDED ASSETS AS WELL AS ON THE ADEQUACY OF A COMPANY'S INTERNAL CONTROLS AND A COMPANY'S COMPLIANCE WITH LAWS AND REGULATIONS IT ALSO CALLED FOR A NEW BOTTOM LINE OR CORE EARNINGS THAT WOULD REPRESENT PROFITS THAT WERE EXPECTED TO CONTINUE IN FUTURE YEARS WITHOUT ONETIME RESTRUCTURING GAINS OR LOSSES WE SERIOUSLY QUESTION THE COMMITTEE'S ASSERTIONS THAT USERS OF FINANCIAL STATEMENTS NEED A MORE FLEXIBLE AUDITOR'S REPORT THAT WOULD ASSIST IN EVALUATING THE QUALITY OF A COMPANY'S EARNINGS THE FEI SAID THE COMMITTEE SUGGESTED THAT THE CURRENT BOILERPLATE LANGUAGE OF THE AUDITOR'S STATEMENT IN AN ANNUAL REPORT BE REPLACED BY FORECASTS ON THE COMPANY'S PROSPECTS 9309210009 930921 BUSINESS BRIEF OGDEN CORP PARENT UNIT TO TAKE CHARGES IN PERIOD BUDGET LAW CITED OGDEN CORP AND ITS PUBLICLY TRADED OGDEN PROJECTS INC UNIT SAID THEY WOULD TAKE CHARGES FOR THE THIRD QUARTER DUE TO THE RECENTLY PASSED FEDERAL BUDGET LAW OGDEN CORP SAID IT WILL TAKE A CHARGE OF 43 MILLION OR 10 CENTS A SHARE FOR THE QUARTER ENDED SEPT 30 THE NONCASH CHARGE INCLUDES EIGHT CENTS A SHARE FOR RESTATEMENT OF DEFERRED INCOME TAX BALANCES AND TWO CENTS A SHARE FOR THE 1 INCREASE IN THE TAX RATE FOR THE FIRST NINE MONTHS OF 1993 OGDEN PROJECTS INC 843OWNED BY OGDEN CORP SAID IT WOULD RECORD A CHARGE OF 49 MILLION OR 13 CENTS A SHARE INCLUDING A ONETIME CHARGE OF 12 CENTS A SHARE FOR RESTATEMENT OF DEFERRED INCOME TAX BALANCES AND ONE CENT A SHARE FOR INCREASE IN THE CORPORATE TAX RATE OGDEN CORP NEW YORK PROVIDES SUPPORT SERVICE TO ENERGY AND ENVIRONMENTAL AGENCIES AIRPORTS AND AIRLINES OGDEN PROJECTS INC FAIRFIELD NJ DESIGNS AND BUILDS WASTETOENERGY FACILITIES 9309210008 930921 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS AND WEDNESDAY SEPTEMBER 8 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9309210007 930921 LETTERS TO THE EDITOR BOSTON FED STUDY SHOWS RACE BIAS ALMOST A YEAR AGO THE BOSTON FED RELEASED A STUDY CONCLUDING THAT BLACK AND HISPANIC MORTGAGE APPLICANTS IN 1990 IN THE BOSTON AREA WERE TURNED DOWN MORE FREQUENTLY THAN WHITES BECAUSE OF BOTH THEIR WEAKER FINANCIAL CHARACTERISTICS AND THEIR RACE IN AN EDITORIAL PAGE ARTICLE STAN LIEBOWITZ ATTEMPTS TO DISCREDIT THE SECOND PART OF THIS CONCLUSION ALTHOUGH APPARENTLY NOT THE FIRST BECAUSE OF WHAT HE TERMS HUNDREDS OF ERRORS IN THE DATA AND THE INFLUENCE OF SIX EXTREMELY INFLUENTIAL LOAN APPLICATIONS A STUDY THAT DESERVES NO CREDIT SEPT 1 MR LIEBOWITZ'S ARGUMENTS ARE WITHOUT MERIT THE STUDY'S CONCLUSION BOTH PARTS IS VALID FOR OUR STUDY MORE THAN 100 LENDERS SUPPLIED 38 DATA ITEMS FOR EACH OF MORE THAN 3000 LOAN APPLICATIONS IN THEIR FILES OUR RESEARCHERS SUBJECTED THESE DATA TO CAREFUL VISUAL INSPECTIONS AND COMPUTER EDITS AND REPEATEDLY CALLED BACK LENDERS TO VERIFY THAT DATA ITEMS THAT SEEMED UNUSUALLY LARGE OR SMALL ACTUALLY REFLECTED THE CONTENTS OF THE LENDERS' FILES NEVERTHELESS MR LIEBOWITZ ASSERTS THAT THE RESEARCHERS PAID TOO LITTLE ATTENTION TO THE REPORTING COLLECTING AND TRANSCRIBING OF DATA BUT ALMOST ALL HIS EXAMPLES OF ERRORS ARE CLEARLY NOT ERRORS AT ALL FOR INSTANCE MR LIEBOWITZ CHARACTERIZES LOANS THAT HAD LOANTOVALUE RATIOS IN EXCESS OF 80 AND DID NOT HAVE PRIVATE MORTGAGE INSURANCE AS ERRORS THOSE FAMILIAR WITH MORTGAGE MARKETS KNOW HOWEVER THAT PRIVATE MORTGAGE INSURANCE IS NOT REQUIRED IF THE LOAN IS HELD IN THE LENDER'S PORTFOLIO INSURANCE IS USUALLY REQUIRED IF THE LOAN IS TO BE SOLD IN THE SECONDARY MARKET BUT EXCEPTIONS ARE MADE OF THE 515 APPLICATIONS WITH LOANTOVALUES IN EXCESS OF 80 AND NO PRIVATE MORTGAGE INSURANCE 204 WERE REJECTED BY THE LENDER OR NOT ACCEPTED BY THE APPLICANT 206 WERE APPROVED AND HELD IN THE LENDER'S PORTFOLIO AND 105 WERE SOLD TO A COMBINATION OF AFFILIATED INSTITUTIONS OTHER BANKS LIFE INSURANCE COMPANIES FNMA AND FHLMC A PLAUSIBLE OUTCOME THE BOSTON FED WAS CONSCIOUS NONETHELESS THAT VERY LARGE OR SMALL VALUES FOR KEY VARIABLES EVEN IF ACCURATELY REFLECTING LOAN FILES COULD AFFECT ITS RESULTS AS A CONSEQUENCE THE DATA WERE ANALYZED INCLUDING AND EXCLUDING UNUSUAL VALUES FOR NET WORTH LOANTOVALUE RATIOS AND OTHER IMPORTANT VARIABLES THE FINDING THAT RACE HAD A STATISTICALLY SIGNIFICANT EFFECT ON THE MORTGAGE LENDING OUTCOME WAS UNCHANGED THIS CONCLUSION STOOD UP TO MANY DIFFERENT SPECIFICATIONS OF THE LENDING DECISION THE ONLY WAY TO SUBSTANTIALLY REDUCE THE STATISTICAL SIGNIFICANCE OF RACE IS TO DRASTICALLY CUT THE NUMBER OF REJECTED MINORITY APPLICANTS SUBJECTED TO ANALYSIS MR LIEBOWITZ DOES PRECISELY THIS REPEATEDLY DIVIDING UP THE SAMPLE AND MAKING IT SMALLER AND FINALLY REMOVING EXTREMELY INFLUENTIAL OBSERVATIONS IN MR LIEBOWITZ'S PENULTIMATE CORE SAMPLE ONLY 14 REJECTED MINORITY APPLICATIONS REMAIN OUT OF MORE THAN 200 EVEN SO AS MR LIEBOWITZ ACKNOWLEDGES RACE STILL HAS A STATISTICALLY SIGNIFICANT EFFECT ON THE PROBABILITY OF REJECTION ONLY AFTER SIX MORE REJECTIONS ARE REMOVED DOES THE EFFECT OF RACE ALONG WITH THE DATA ON MINORITY REJECTIONS EVAPORATE THAT MR LIEBOWITZ MUST GO TO SUCH LENGTHS TO REMOVE THE INFLUENCE OF RACE IS A POWERFUL CONFIRMATION OF THE VALIDITY OF THE BOSTON FED'S FINDING FINALLY MR LIEBOWITZ AND OTHERS HAVE TAKEN THE BOSTON FED TO TASK FOR BEING SLOW TO RELEASE ITS DATA BEFORE THE DATA COULD BE RELEASED STEPS HAD TO BE TAKEN TO ENSURE THAT INDIVIDUAL BORROWERS COULD NOT BE IDENTIFIED MR LIEBOWITZ'S REFERENCING OF SPECIFIC APPLICATIONS TO BUTTRESS HIS ARGUMENT MAKES CLEAR THE WISDOM OF THIS CAUTION 9309210006 930921 STOCK BECOMES WEAPON OF CHOICE IN TAKEOVERS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL IN THE TAKEOVER BINGE OF THE 1980S CASH WAS KING BUT NOW AS A GIANT ENTERTAINMENTINDUSTRY TAKEOVER BATTLE BREAKS OUT STOCK HAS BECOME THE CURRENCY OF CHOICE WITH THEIR STOCK PRICES SOARING IN A GREAT BULL MARKET BOTH VIACOM INC AND QVC NETWORK INC ARE USING THEIR OWN STOCK TO FINANCE THE MAJORITY OF THEIR COMPETING BIDS FOR PARAMOUNT COMMUNICATIONS INC AND THE OUTCOME COULD BE DETERMINED BY THE VALUE OF THEIR DUELING EQUITIES VIACOM'S PROPOSED ACQUISITION OF PARAMOUNT CURRENTLY WORTH 75 BILLION OR 6318 A SHARE BASED ON YESTERDAY'S CLOSING PRICES INCLUDES 910 A SHARE IN CASH AND THE REMAINDER IN VIACOM STOCK AND QVC'S 95 BILLION 80ASHARE OFFER UNVEILED YESTERDAY INCLUDES 30 IN CASH AND 50 OF QVC SHARES THE STOCKS OF BOTH COMPANIES ARE HIGHLY VOLATILE THAT MEANS THE OFFER DELIVERING THE MOST VALUE TO PARAMOUNT HOLDERS COULD BE DETERMINED BY WHICH COMPANY CABLETV GIANT VIACOM OR SHOPPINGCHANNEL QVC CAN TELL THE BEST STORY ABOUT HOW FAST THEIR COMPANIES WOULD GROW IF COMBINED WITH PARAMOUNT WALL STREET MERGER PROFESSIONALS ARE STARTING TO GET A FEEL FOR HOW THE DYNAMICS OF RIVAL STOCK BIDS WILL DIFFER FROM THE DEBTFINANCED BATTLES OF THE 1980S FOR ONE THING STOCK DEALS MAY TAKE LONGER TO COMPLETE AND MAY REQUIRE SHAREHOLDER VOTES NONETHELESS STOCK IS RAPIDLY GAINING FAVOR THE PERCENTAGE OF ANNOUNCED TAKEOVER BIDS IN WHICH STOCK REPRESENTS AT LEAST 50 OF THE VALUE HAS EXPLODED TO 44 THIS YEAR FROM AS LITTLE AS 46 IN 1988 AT THE HEIGHT OF THE JUNKBONDFINANCED MERGER BOOM THE RISE IN EQUITY FINANCING WHICH IS BEING USED THIS YEAR BY ACQUIRERS FROM AMERICAN TELEPHONE & TELEGRAPH CO TO NEW YORK TIMES CO HAS HELPED FUEL A SIGNIFICANT SURGE IN MERGER ACTIVITY THIS YEAR MANY EXPERTS ARE CONVINCED THAT MORE STOCK DEALS ARE IN THE OFFING AT THIS LEVEL OF THE STOCK MARKET IT'S MORE INTELLIGENT TO OFFER SHARES INSTEAD OF GOING OUT AND BORROWING MONEY SAYS GUY WYSERPRATTE A NEW YORK TAKEOVERSTOCK TRADER JEFFREY R SECHREST HEAD OF MERGERS AND ACQUISITIONS AT LEHMAN BROTHERS INC SAYS THAT ANY DUELINGSTOCK BATTLE BECOMES ALMOST LIKE A PROXY FIGHT YOU'RE NOT ONLY FIGHTING ABOUT WHO'S GOT THE HIGHEST PRICE ON THE TABLE BUT ALSO WHO'S GOT THE HIGHESTQUALITY STOCK AND WHICH COMPANY HAS A BETTER FIT WITH THE TARGET COMPANY ALREADY DOUBTS ABOUT THE VIACOMPARAMOUNT DEAL AS ANNOUNCED ON SEPT 15 HAVE CONTRIBUTED TO A HEFTY DROP IN VIACOM'S STOCK REDUCING THE VALUE OF VIACOM'S BID VIACOM IS OFFERING 01 SHARE OF ITS CLASS A VOTING STOCK AND 09 CLASS B NONVOTING SHARE FOR EACH PARAMOUNT SHARE EARLY LAST WEEK THE DISCLOSURE THAT VIACOM CHAIRMAN SUMNER REDSTONE WAS A HEAVY BUYER OF THINLY TRADED VIACOM STOCK IN JULY AND AUGUST RAISED DOUBTS ABOUT WHETHER VIACOM WAS OVERVALUED PARTICULARLY IN VIEW OF ITS NEED TO ISSUE NEW SHARES THAT WOULD BOOST THE NUMBER OF SHARES OUTSTANDING BY 63 LATER IN THE WEEK INCESSANT REPORTS ABOUT QVC'S PLANS TO MOUNT A COMPETING BID CAUSED TRADERS TO CONCLUDE THAT VIACOM MIGHT WELL HAVE TO BOOST THE VALUE OF ITS OWN OFFER TO COMPETE WITH ANY QVC BID AND THAT IN TURN ALSO HIT VIACOM'S STOCK PRICE AS A RESULT THE VALUE OF VIACOM'S BID HAS FALLEN STEADILY FROM 6914 FOR EACH PARAMOUNT SHARE OR 82 BILLION AS OF SEPT 13 TO 6318 A SHARE OR 75 BILLION AS OF THE CLOSE OF TRADING YESTERDAY THAT'S BECAUSE VIACOM CLASS A SHARES HAVE FALLEN 675 TO YESTERDAY'S 5925 DURING THE PAST SIX TRADING DAYS THE CLASS B SHARES HAVE FALLEN 5875 TO YESTERDAY'S 5350 VIACOM'S SHARES TRADE ON THE AMERICAN STOCK EXCHANGE DURING THE SAME SIX SESSIONS PARAMOUNT'S STOCK HAS SURGED TO 6975 ON THE NEW YORK STOCK EXCHANGE FAR ABOVE THE CURRENT VALUE OF THE VIACOM OFFER VIACOM AND PARAMOUNT HAVE TRUMPETED THE SYNERGIES OF THEIR PROPOSED MARRIAGE BETWEEN PARAMOUNT'S FILM LIBRARY AND MOVIE PRODUCTION AND VIACOM'S FASTGROWING CABLETV SYSTEMS AND CHANNELS AND YESTERDAY VIACOM ISSUED A STATEMENT ACIDLY QUESTIONING HOW WELL PARAMOUNT WOULD FIT WITH A SHOPPING SERVICE NOW THAT QVC HAS LAUNCHED ITS OWN BID CHAIRMAN BARRY DILLER WILL NO DOUBT WAX EQUALLY ENTHUSIASTIC ABOUT THE SYNERGIES BETWEEN QVC AND PARAMOUNT WHERE HE USED TO HEAD THE MOVIE STUDIO BUT HE WILL BE TILTING AGAINST A BIG DOWNTURN IN QVC SHARES WHICH HAVE ALREADY FALLEN 23 FROM THEIR PEAK OF 7250 A SHARE ON JUNE 2 QVC SHARES FELL 350 TO 56 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE CREDIBILITY OF THOSE DUELING STORIES WILL BECOME CRUCIAL IF STOCK REMAINS A BIG PART OF BOTH BIDS BOTH VIACOM AND QVC STOCKS ARE TRADING AT LOFTY MULTIPLES OF THEIR ESTIMATED 1993 CASH FLOW VIACOM AT 17 TIMES AND QVC 16 TIMES EDWARD HATCH A MEDIA ANALYST AT UBS SECURITIES NOTES THAT IT WILL BE EASIER FOR VIACOM WITH EXPECTED 1993 REVENUE OF 2 BILLION AND A STOCKMARKET VALUE OF 7 BILLION TO BOLSTER ITS BID THAN IT WILL BE FOR QVC WITH EXPECTED 1993 REVENUE OF 12 BILLION AND A CURRENT STOCKMARKET VALUE OF 27 BILLION MR WYSERPRATTE NOTING THAT QVC'S BID WOULD NEARLY TRIPLE THE NUMBER OF ITS COMMON SHARES PREDICTED THAT QVC SHARES COULD FALL TO THE LOW 50S TODAY AND THE MID40S OVER THE NEXT SEVERAL DAYS WHICH COULD REDUCE THE VALUE OF ITS BID AS LOW AS 70 A SHARE THE PRICE OF QVC WILL NOT WITHSTAND THIS PRESSURE HE WARNED HOWEVER MR HATCH SAYS QVC COULD MAKE PARAMOUNT THE CENTERPIECE OF A NEW NETWORK OR NEW PROGRAMMING SERVICE HE ADDED THAT MR DILLER'S TRACK RECORD AS A MOVIE STUDIO CHIEF AND COFOUNDER OF THE FOURTH TV NETWORK PIONEERED BY RUPERT MURDOCH MEANS QVC WOULD PROBABLY HAVE A HIGH DEGREE OF SUCCESS INTEGRATING PARAMOUNT WITH THEIR COMPANY LEHMAN'S MR SECHREST NOTES THAT THIS YEAR HAS ALREADY SEEN A STOCK VS STOCK TAKEOVER BATTLE AMONG THREE MIDWESTERN UTILITIES THAT WASN'T DECIDED ON THE BASIS OF WHICH OFFER GAVE THE HIGHEST VALUE IN THAT CONTEST IPALCO ENTERPRISES INC WITHDREW A HOSTILE TAKEOVER BID FOR PSI RESOURCES INC AFTER PSI SHAREHOLDERS VOTED TO REJECT A SLATE OF DIRECTORS NOMINATED BY IPALCO THE PSI HOLDERS WERE EFFECTIVELY VOTING FOR A LOWERPRICED FRIENDLY MERGER WITH ANOTHER UTILITY CINCINNATI GAS & ELECTRIC CO BECAUSE THAT DEAL APPEARED TO HAVE A GREATER LIKELIHOOD OF APPROVAL BY REGULATORS ANOTHER INVESTMENT BANKER SAID THAT IN ANY CASE OF DUELING EQUITIES THE MARKET WOULD VALUE THE TWO BIDS AND WHOEVER WOULD HAVE THE BEST STORY WOULD WIN THIS BANKER NOTED THAT TAKEOVER BATTLES ARE OFTEN DECIDED BY SUCH DEBATES IN BRITAIN WHERE A SMALL GROUP OF INSTITUTIONAL INVESTORS DECIDE WHETHER ANY GIVEN BID WILL PREVAIL BUT OTHER EXPERTS PREDICT THAT VIACOM CAN STRENGTHEN ITS BID BY QUICKLY OBTAINING AN INVESTMENT BY A REGIONAL BELL OPERATING COMPANY THAT WANTS TO JOIN THE MULTIMEDIA FRAY VIACOM MAY ALSO BOOST THE CASH PORTION OF ITS OFFER INCREASE THE AMOUNT OF STOCK OR PROVIDE SOME PROTECTION AGAINST A DECLINE IN ITS STOCK PRICE GORDON RICH COHEAD OF MERGERS AT CS FIRST BOSTON SAYS THAT STOCK BIDS SOME TIMES REQUIRE AN EXTENSIVE TIMECONSUMING CLEARANCE PROCESS BY THE SECURITIES AND EXCHANGE COMMISSION WHICH MUST APPROVE THE PROSPECTUS OFFERING THE NEW STOCK ISSUED TO FINANCE AN ACQUISITION BUT HE SAID THAT WASN'T AS MUCH OF A DISADVANTAGE AS IT ONCE WAS THE MERGER MANIA OF THE 1980S LED TO THE CREATION OF MANY DELAYING MECHANISMS SUCH AS POISON PILLS AND STAGGERED TERMS FOR DIRECTORS TO BE BUILT INTO CORPORATE BYLAWS AND STATE TAKEOVER STATUTES HE EXPLAINS COMPARED TO THE FIVE MONTHS THAT IT TOOK AT&T TO OBTAIN A MERGER AGREEMENT FROM NCR CORP AFTER ITS HOSTILE BID IN LATE 1990 MR RICH SAID INHERENTLY STOCK ISN'T AS BAD AS IT USED TO BE 9309210005 930921 COLLINS INDUSTRIES INC RESTATES MUCH LOWER ITS 9MONTH RESULTS HUTCHINSON KAN COLLINS INDUSTRIES INC SAID IT RESTATED ITS RESULTS SHARPLY DOWNWARD FOR THE FIRST NINE MONTHS OF FISCAL 1993 AFTER AN INTERNAL INVESTIGATION UNCOVERED CERTAIN UNDERSTATED LABOR AND OVERHEAD COSTS AND INVENTORY INACCURACIES IN ITS AMBULANCE DIVISION THE LONGTROUBLED AMBULANCE MANUFACTURER ALSO SAID THAT IT WOULD TAKE A 18 MILLION CHARGE IN THE FISCAL THIRD QUARTER ENDED JULY 31 IN CONNECTION WITH A SHAREHOLDER LAWSUIT COLLINS EXECUTIVES WEREN'T AVAILABLE TO PROVIDE DETAILS BUT THE COMPANY ANNOUNCED IN JULY THAT IT WAS THE TARGET OF A SHAREHOLDER LAWSUIT NOW PENDING IN A FEDERAL COURT IN WICHITA KAN COLLINS ALSO SAID IT WAS ESTABLISHING A 500000 RESERVE FOR LEGAL EXPENSES ASSOCIATED WITH A CONTINUING INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION AS A RESULT OF THE ADJUSTMENTS ANNOUNCED YESTERDAY COLLINS SAID IT WOULD RESTATE ITS RESULTS FOR THE FISCAL THIRD QUARTER TO REFLECT A NET LOSS OF 47 MILLION OR 66 CENTS A SHARE COMPARED WITH THE ORIGINALLY REPORTED NET LOSS OF 364000 OR FIVE CENTS A SHARE THE COMPANY'S RESTATED RESULTS FOR THE FIRST NINE MONTHS OF FISCAL 1993 WILL REFLECT A NET LOSS OF 79 MILLION OR 112 A SHARE COMPARED WITH THE ORIGINALLY REPORTED NET LOSS OF 280223 OR FOUR CENTS A SHARE COMPANY EXECUTIVES COULDN'T BE REACHED FOR COMMENT BUT IN A NEWS RELEASE DON L COLLINS CHIEF EXECUTIVE OFFICER SAID THAT WHILE THE ADJUSTMENTS WILL HAVE A SUBSTANTIAL IMPACT UPON OPERATING RESULTS AND NET WORTH THEY HAVE NO SIGNIFICANT IMPACT UPON CASH FLOW THE COMPANY'S ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING HOWEVER THE COMPANY'S STOCK FELL 105 IN YESTERDAY'S NATIONAL OVERTHECOUNTER TRADING DECLINING 25 CENTS TO 2125 9309210004 930921 BUSINESS BRIEF LOSS BY INTERNATIONAL MULTIFOODS IS POSTED FOR FISCAL 2ND PERIOD MINNEAPOLIS INTERNATIONAL MULTIFOODS CORP TAKING A 363 MILLION RESTRUCTURING CHARGE REPORTED A LOSS FOR ITS FISCAL SECOND QUARTER AND FIRST HALF AND SAID IT IS EXPLORING THE SALE OF ITS PREPARED FOODS DIVISION MULTIFOODS REPORTED A LOSS OF 272 MILLION OR 141 A SHARE FOR THE PERIOD ENDED AUG 31 COMPARED WITH PROFIT OF 92 MILLION OR 47 CENTS SHARE A YEAR EARLIER SALES FELL 38 TO 5215 MILLION FROM 5424 MILLION THE LATESTQUARTER'S LOSS INCLUDES CHARGES EQUAL TO 188 A SHARE FOR THE SIX MONTHS THE COMPANY REPORTED A LOSS OF 208 MILLION OR 108 A SHARE COMPARED WITH NET INCOME OF 152 MILLION OR 78 CENTS A SHARE A YEAR EARLIER SALES DECLINED TO 108 BILLION FROM 109 BILLION THE PREPARED FOODS UNIT WHICH THE COMPANY SAID IS PROFITABLE ACCOUNTED FOR ABOUT 15 OF 1993 FISCAL REVENUE OF 22 BILLION IT SELLS MEATS SEAFOOD BAKERY ITEMS APPETIZERS AND ETHNIC FOOD PRIMARILY TO RESTAURANTS AND SCHOOLS BRANDS INCLUDE FANTASIA FRED'S MULTIFOODS POSADA SEAFEST REUBEN AND ROTANELLI'S BASED IN RIVERSIDE CALIF THE UNIT EMPLOYS ABOUT 2000 MULTIFOODS ALSO SAID DIRECTORS APPROVED THE REPURCHASE OF AS MANY AS 25 MILLION COMMON SHARES THERE ARE ABOUT 192 MILLION SHARES OUTSTANDING THE RESTRUCTURING CHARGE IS INTENDED TO COVER COSTS ASSOCIATED WITH THE DISPOSAL OF WHAT THE COMPANY SAID WERE SEVERAL UNDERPERFORMING ASSETS AS WELL AS A REORGANIZATION OF REMAINING BUSINESSES TO REDUCE COSTS AND IMPROVE PERFORMANCE ANTHONY LUISO CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE CHANGES ARE INTENDED TO IMPROVE OPERATING EARNINGS BY ABOUT 10 MILLION OVER THE NEXT TWO FISCAL YEARS 9309210003 930921 TAMBRANDS SALE IS ABANDONED BOARD DECLARES MONTHS OF DISCUSSIONS FAIL TO PRODUCE A BUYER MANAGEMENT TO CHANGE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOARD OF TAMBRANDS INC ABANDONED ITS EFFORTS TO SELL THE COMPANY AND SAID A NEW TOP MANAGEMENT STRUCTURE WOULD BE ANNOUNCED SOON AFTER MEETING YESTERDAY THE BOARD ACKNOWLEDGED FOR THE FIRST TIME THAT IT HAD EXPLORED A SALE OF THE MAKER OF TAMPAX TAMPONS OVER THE LAST SEVERAL MONTHS BUT HAD UNANIMOUSLY DECIDED AGAINST IT THE BOARD DECIDED THAT THE BEST COURSE IS TO CONTINUE TO RUN THE BUSINESS INDEPENDENTLY SAID HOWARD B WENTZ JR A LONGTIME DIRECTOR WHO WAS APPOINTED CHAIRMAN AFTER THE JUNE 1 OUSTER OF MARTIN FC EMMETT AS CHIEF EXECUTIVE OFFICER AND CHAIRMAN THE ANNOUNCEMENT WHICH WAS MADE AFTER THE MARKET CLOSED YESTERDAY ENDS MONTHS OF SPECULATION THAT PAIRED TAMBRANDS WITH A NUMBER OF CONSUMERPRODUCTS GIANTS IN PARTICULAR JOHNSON & JOHNSON AND GILLETTE CO THE WALL STREET JOURNAL REPORTED IN JUNE THAT THE COMPANY WAS EXPLORING A POSSIBLE SALE AN INDIVIDUAL FAMILIAR WITH THE SITUATION SAID GILLETTE RECENTLY WAS IN ACTIVE DISCUSSIONS WITH TAMBRANDS BUT ANOTHER PERSON FAMILIAR WITH THE SITUATION SAID THAT WHILE GILLETTE HAS LONG BEEN INTERESTED IN TAMBRANDS IT NEVER WANTED TO PAY A PREMIUM FOR TAMBRANDS STOCK IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TAMBRANDS FELL 1375 TO CLOSE AT 45875 JOHNSON & JOHNSON WAS ALSO SAID TO BE INTERESTED BUT IT FACED POTENTIAL ANTITRUST PROBLEMS BECAUSE IT MAKES THE OB TAMPON WHICH HAS A RELATIVELY SMALL SHARE OF THE US MARKET BUT A STRONGER PRESENCE IN EUROPE COMPANY OFFICIALS DECLINED TO PROVIDE DETAILS ABOUT EFFORTS TO SELL THE COMPANY BUT SOME ANALYSTS HAD ALWAYS CONSIDERED THE SALE OF TAMBRANDS UNLIKELY DESPITE OPERATIONAL AND MANAGERIAL DIFFICULTIES THAT DROVE THE COMPANY'S STOCK DOWN BY MORE THAN A THIRD IN THE FIVE MONTHS PRIOR TO MR EMMETT'S DEPARTURE TALK OF A SALE SPARKED A PARTIAL REBOUND TAMBRANDS' MARKET VALUE IS NOW ABOUT 179 BILLION WITH THE ISSUE OF A SALE BEHIND IT THE TAMBRANDS BOARD NOW FACES THE PRESSING TASK OF FINDING A CHIEF EXECUTIVE WHO CAN TURN AROUND THE EROSION OF SALES AND MARKET SHARE SUFFERED BY ITS FLAGSHIP TAMPAX BRAND IN THE PAST YEAR UNLIKE MR EMMETT WHOSE EXPERIENCE WAS ON THE FINANCIAL SIDE OF THE BUSINESS PEOPLE CLOSE TO THE SITUATION SAY THE BOARD IS ANXIOUS TO FIND SOMEONE WITH STRONG MARKETING ABILITIES THE COMPANY ALREADY HAS EXCEEDED THE 60 TO 90 DAYS IT HAD ALLOTTED FOR THE SEARCH PERIOD AND ANALYSTS SAY IT APPEARS TO BE DRIFTING WITHOUT STRONG LEADERSHIP THE COMPANY IS FLOUNDERING SAID ALICE LONGLEY AN ANALYST AT DONALDSON LUFKIN & JENRETTE IT'S TRYING TO FIGURE OUT WHAT ITS NEW DIRECTION WILL BE OVER THE PAST YEAR TAMPAX HAS LOST GROUND AS A RESULT OF A STRATEGIC EFFORT LAUNCHED DURING MR EMMETT'S TERM TO RAISE THE BRAND'S RETAIL PRICES WHILE SLASHING MARKETING AND PROMOTIONAL SPENDING IN JULY THE COMPANY REPORTED A SECONDQUARTER LOSS OF 34 MILLION AFTER A RESTRUCTURING CHARGE ON A 12 DROP IN SALES PEOPLE CLOSE TO THE SITUATION SAY THE NEW CEO ALSO WILL HAVE TO DEAL WITH SAGGING EMPLOYEE MORALE IN JULY THE COMPANY DEMOTED FORMER PRESIDENT CHARLES J CHAPMAN AND FORCED OUT TWO OTHER KEY EXECUTIVES TAMBRANDS ALSO HAS BEEN DOGGED BY CHARGES FROM FORMER EXECUTIVES THAT MR EMMETT ENJOYED A FANCY LIFESTYLE AT COMPANY EXPENSE AND HAD QUESTIONABLE DEALINGS WITH OUTSIDE CONSULTANTS WHO WERE ALSO HIS FRIENDS MR EMMETT HAS DENIED ANY IMPROPRIETY SEPARATELY TAMBRANDS ANNOUNCED AN 11 INCREASE IN ITS QUARTERLY DIVIDEND TO 42 CENTS A SHARE FROM 38 CENTS THE DIVIDEND WILL BE PAYABLE DEC 15 TO SHARES OF RECORD DEC 7 9309210002 930921 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED SEPT 17 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CHICAGO HEIGHTS ILL WILL REDEEM ON OCT 1 1993 ITS POLLUTION CONTROL REVENUE BONDS AND INDUSTRIAL DEVELOPMENT REVENUE BONDS FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE LUZERNE COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON OCT 1 1993 ITS INDUSTRIAL DEVELOPMENT CONTROL REVENUE BONDS FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE NEW YORK STATE POWER AUTHORITY WILL REDEEM ON OCT 14 1993 THE FOLLOWING GENERAL PURPOSE BONDS SERIES G DUE ON JAN 1 OF THE INDICATED YEARS 62 DUE 1995 64 DUE 1999 AND 675 DUE 2012 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE NEW YORK & NEW JERSEY PORT AUTHORITY WILL REDEEM ON OCT 1 1993 ITS PORT OF NEW YORK AUTHORITY 3 1/2 CONSOLIDATED BONDS 24TH SERIES DUE OCT 1 1994 STATE STREET BANK NEW YORK IS PAYING AGENT THE AUTHORITY WILL ALSO REDEEM 1006000 PRINCIPAL AMOUNT OF ITS PORT OF NEW YORK AUTHORITY 3 5/8 CONSOLIDATED BONDS 30TH SERIES DUE OCT 1 1998 SHAWMUT TRUST CO NEW YORK IS PAYING AGENT AND 2540000 OF ITS PORT AUTHORITY OF NEW YORK & NEW JERSEY 5 1/2 CONSOLIDATED BONDS 41ST SERIES DUE OCT 1 2008 BANK OF TOKYO NEW YORK IS PAYING AGENT HYDROQUEBEC WILL REDEEM ON NOV 1 1993 ITS 10 3/4 SINKING FUND DEBENTURES SERIES CY DUE MAY 1 1996 BANK OF MONTREAL TRUST CO NEW YORK IS REDEMPTION AGENT 9309210001 930921 BUSINESS & RACE BY LEON E WYNTER THE CONGRESSIONAL BLACK CAUCUS JUMPED TO 40 MEMBERS THIS YEAR FROM 26 AND CORPORATIONS ARE TAKING NOTICE MANY COMPANIES SHARPLY RAISED THEIR SUPPORT FOR THE CAUCUS'S HUGE ANNUAL LEGISLATIVE CONFERENCE IN WASHINGTON WHICH ENDED SUNDAY MCDONNELL DOUGLAS FOR EXAMPLE RENTED THE CAVERNOUS NATIONAL AIR AND SPACE MUSEUM FOR A RECEPTION HONORING 14 BLACK FRESHMAN LEGISLATORS IT WAS A SEVERAL FOLD INCREASE IN SPENDING OVER THE COMPANY'S 1992 SUPPORT SAYS THOMAS M CULLIGAN A MCDONNELL VICE PRESIDENT HE SAYS THE LARGESS WAS PROMPTED BY HEIGHTENED AWARENESS OF MINORITY ISSUES AND THE FACT THAT SOME 7000 MCDONNELL EMPLOYEES LIVE IN THE DISTRICT OF CAUCUS MEMBER REP WILLIAM CLAY D MO WE WANT TO WORK WITH THE CAUCUS MR CULLIGAN SAYS IT'S A GROWING VOICE AND ITS AGENDA GROWS WITH IT THE CAUCUS WHOSE MEMBERS NOW MAKE UP ALMOST 10 OF THE HOUSE ATTRACTED SOME FIRSTTIME SPONSORS LIKE FEDERAL EXPRESS AND TYSON FOODS ACCORDING TO CAUCUS OFFICIALS WHO DECLINED TO DISCUSS THE FUNDRAISING CAMPAIGN IN DETAIL THE CAUCUS'S LONGTIME SPONSORS INCLUDE CHRYSLER PHILIP MORRIS SONY AND PEPSICO THERE WAS SOME GRUMBLING AMONG CORPORATIONS ABOUT PRESSURE TO INCREASE DONATIONS TO THE CAUCUS'S NONPROFIT RESEARCH AND EDUCATION FUND ACCORDING TO SEVERAL COMPANY REPRESENTATIVES BUT THAT DIDN'T PUT A SERIOUS DAMPER ON THE GIVING THE 500 TABLES AT THE CAUCUS'S AWARDS BANQUET WERE SOLD OUT MOSTLY TO CORPORATIONS EVEN THOUGH THE TOP PRICE OF A TABLE JUMPED TO 25000 THIS YEAR FROM 10000 LAST YEAR MANY SOCIALLY CONSCIOUS COMPANIES PLEDGE TO INCREASE BUSINESS WITH MINORITY SUPPLIERS BUT IF NO MINORITY FIRM IS LARGE ENOUGH FOR THE JOB A BIG COMPANY SOMETIMES CREATES ONE THAT IS WHAT THE GIANT NEW YORK ANNUITY COMPANY TEACHERS INSURANCE & ANNUITY ASSOCIATION COLLEGE RETIREMENT EQUITIES FUND DID RECENTLY IT SHEPHERDED A JOINT VENTURE BETWEEN PM REALTY GROUP HOUSTON A LARGE WHITEOWNED MANAGER OF COMMERCIAL PROPERTIES AND RMC GROUP NEW YORK OWNED BY VETERAN BLACK REAL ESTATE CONSULTANT RICHMOND MCCOY THE MCCOY/PM REALTY GROUP LAUNCHED IN JUNE IS 52 OWNED BY RMC AND IS THE NATION'S LARGEST MINORITYOWNED FULLSERVICE PROPERTY MANAGER TO SEAL THE DEAL TIAACREF AND PM'S PARENT JUPITER INDUSTRIES CHICAGO EACH COMMITTED 125 MILLION SQUARE FEET OF PROPERTY FOR MCCOY/PM TO MANAGE PATRICK JOLIVET TIAACREF ASSOCIATE MANAGER FOR REAL ESTATE SAYS HE WANTED TO AVOID CREATING A MINORITY FRONT FIRM ONE ONLY NOMINALLY CONTROLLED BY MINORITIES HE SAYS THE JOINT VENTURE CREATES A TRULY MINORITYOWNED FIRM THAT CAN COMPETE WITH ALL OTHER MANAGEMENTLEASING COMPANIES ON THEIR OWN TERMS MR MCCOY SAYS RMC GROUP BEGUN IN 1991 STUMBLED AT FIRST BY FOCUSING ON CORPORATE AND GOVERNMENT SETASIDE WORK AND SERVING OTHER MINORITY FIRMS YOU GO DOWN THAT ROUTE YOU'RE DESTINED FOR FAILURE HE SAYS BECAUSE THAT STRATEGY DOESN'T GENERATE ENOUGH WORK MCCOY/PM HAS 3500 EMPLOYEES MOSTLY CONTRIBUTED BY PM IN 22 STATES MINORITIES ARE ALMOST INVISIBLE AS MANAGERS IN THE MANAGEMENTLEASING INDUSTRY MR MCCOY PLANS TO HIRE MINORITIES WHENEVER POSSIBLE TO CHANGE THAT MINORITY CABLETELEVISION PROGRAMMERS ARE TRYING TO MEET VIEWERS' DEMAND FOR MORE ETHNICORIENTED PROGRAMS WE'VE ALREADY CAPTURED THE MASS MARKET SAYS JOHN CLARK A SENIOR VICE PRESIDENT AT CROWN MEDIA A DALLAS CABLESYSTEM OPERATOR UNDERSERVED SEGMENTS ARE THE FRONTIER OF CABLE MARKETING NOW AND THAT INCLUDES ALL ETHNIC GROUPS CROWN MEDIA IS ONE OF 30 CABLE OPERATORS INTERESTED IN CARRYING OLE TV A SOONTOBELAUNCHED MIAMIBASED SPANISHLANGUAGE SERVICE THAT AIMS TO RAISE THE LEVEL OF PROGRAMMING AVAILABLE FOR SPANISHSPEAKING VIEWERS OLE TV NETWORK CHAIRMAN ISABEL NORNIELLA SAYS THE SURFEIT OF SOAP OPERAS AND DEARTH OF EDUCATIONAL AND CULTURAL SHOWS ON SPANISHLANGUAGE BROADCAST NETWORKS LEAVE PEOPLE WHO DON'T WATCH SOAP OPERAS FEW SPANISHLANGUAGE ALTERNATIVES BLACK ENTERTAINMENT TELEVISION RECENTLY ACQUIRED ACTION PAY PER VIEW NETWORK AND PLANS TO ADD MOVIES WITH AFRICANAMERICAN THEMES TO THE MIX OF ACTION FILMS DELIVERED VIA SATELLITE AND RADIO AND TV BROADCASTER EUGENE JACKSON CHAIRMAN OF UNITY BROADCASTING NETWORK HAS ANNOUNCED PLANS FOR WORLD AFRICAN NETWORK A CABLE PROGRAMMING SERVICE DEVOTED TO AFRICANAMERICAN AND AFRICAN PRODUCTIONS SET TO BEGIN NEXT JUNE NEED A MINORITY OR FEMALE SUPPLIER FAST THOMAS PUBLISHING A 95YEAROLD NEW YORK COMPANY THAT PUTS OUT REFERENCE BOOKS USED BY MANUFACTURERS RECENTLY STARTED A SERVICE TO CONNECT MANUFACTURERS WITH SUCH SUPPLIERS MANY GOVERNMENT AND CORPORATE PROGRAMS REQUIRE MANUFACTURERS TO USE MINORITY AND WOMENOWNED SUPPLIERS USERS OF THOMAS'S SERVICE CAN SEARCH BY TELEPHONE KEYPAD THROUGH 3500 PRODUCT CATEGORIES AND RECEIVE INFORMATION ON SUPPLIERS WITHIN AN HOUR BY FAX THOMAS LISTS 10000 SUPPLIERS SO FAR AND HAS STARTED SIGNING UP SUBSCRIBERS AT 390 A YEAR SUPPLIERS ARE LISTED FREE OF CHARGE WITH SELFREPORTED INFORMATION AS TO THEIR CERTIFICATIONS AS NONWHITEMALEOWNED FIRMS BY GOVERNMENT AND PRIVATE AGENCIES ABOUT TWOTHIRDS OF THE SUPPLIERS IN THE DATABASE HAVE NO PROOF OF CERTIFICATION HOWEVER BECAUSE MANY COMPANIES IGNORE GETTING SUCH APPROVALS THIS WORRIES HARRIET MICHEL EXECUTIVE DIRECTOR OF THE NATIONAL MINORITY SUPPLIER DEVELOPMENT COUNCIL THE LARGEST PRIVATE CERTIFICATION GROUP BECAUSE BOGUS MINORITY SUPPLIERS MAY MISLEAD SUBSCRIBERS AT CERTIFIED FIRMS' EXPENSE 9309210084 930824 REVIEW & OUTLOOK EDITORIAL NO PASSING FANCY ALL THOSE BILLIONS OF TRANSPORTATION DOLLARS FROM WASHINGTON SLOG THEIR WAY THROUGH THE PIPELINE DEFYING THE PERIODIC PRESIDENTIAL PRONOUNCEMENTS OF SPEEDUPS TO CREATE JOBS IN CALIFORNIA HOWEVER A DIFFERENT SORT OF ROAD PROJECT IS JUST UNDER WAY AND ALREADY AHEAD OF SCHEDULE IT'S PRIVATE THE 10MILE CANYON STRETCH OF TOLL LANES CONNECTING ORANGE AND LOS ANGELES COUNTIES WITH THE AFFORDABLE BEDROOM COMMUNITIES NEAR RIVERSIDE IS FINANCED AT 126 MILLION BY INVESTORS AND LENDERS WITH NOT A DIME FROM TAXPAYERSTHE FIRST TIME THAT'S HAPPENED SINCE WORLD WAR II EVEN THE POLICING OF THE STRETCH WILL BE DONE UNDER CONTRACT BY THE STATE HIGHWAY PATROL THE PROJECT WAS SUPPOSED TO TAKE 42 MONTHS THE BUILDERS HAVE ACTED TO SHAVE THAT TO 29 THEY ADDED A 1 MILLION TRANSITIONAL BRIDGE TO SPEED THINGS UP BECAUSE IN THE WORLD OF PRIVATE CAPITAL TIME IS MONEY IN SIZE THIS PROJECT ISN'T ALL THAT BIG BUT IN SYMBOLISM IT IS NOT ONLY IS THE GOVERNMENT ON THE PERIPHERY BUT THIS WILL BE A TOLL ROAD WITH NO TOLL BOOTHS ELECTRONIC TAGS WILL REGISTER USAGE ON SUBSCRIBERS' BILLS THE LEAD DEVELOPER PETER KIEWIT SONS OF OMAHA HAS A MAJORITY STAKE IN THE MAKER OF THIS TECHNOLOGY WHICH IN TURN IS IN A JOINT VENTURE WITH TEXAS INSTRUMENTS OBVIOUSLY THIS HAS POTENTIAL REACHING FAR BEYOND THE THREE OTHER AND LARGER TOLL PROJECTS PLANNED UNDER THE SAME AUTHORIZING LAW IN CALIFORNIA THE SECRET HERE IS CONGESTION PRICING COSTING ANYWHERE FROM 25 CENTS TO 250 DEPENDING ON THE TIME OF DAY AND CONDITIONS THE TOLL LANES WILL AIM TO ALLOW MOTORISTS TO COMPLETE THIS LINK IN 12 MINUTES VERSUS THE ONE HOUR IT SOMETIMES TAKES ON THE EXISTING FREE LANES ALONG THE SAME ROUTE BECAUSE THE TWO ROADS WILL BE SIDE BY SIDE AND EACH DECISION BY A DRIVER TO ABANDON THE FREE LANES WILL MAKE THEM THAT LESS CONGESTED FOR EVERYONE ELSE DESIGNERS OF THE NEW SYSTEM HAVE HAD TO DO COMPLEX MODELING TO COME UP WITH THEIR PRICING WHEN ADDED TO OTHER TOLL ROADS BEING BUILT UNDER A DIFFERENT ARRANGEMENT THE ROUTE TO RIVERSIDE MEANS THAT MORE TOLL MILES ARE BEING LAID IN ORANGE COUNTY THAN IN THE REST OF THE COUNTRY COMBINED ACCORDING TO GERALD PFEFFER THE PROJECT CHIEF FOR KIEWIT THIS REFLECTS THE POLITICALLY CONSERVATIVE COUNTY'S OPENNESS TO A USERPAYS CONCEPT FOR PUBLIC FACILITIES UNDER THE FRANCHISE DEAL THE NEW LANES WILL BELONG TO THE STATE AFTER 35 YEARS THE OPENING IN LATE 1995 WILL ALSO BE A CREDIT TO ROBERT POOLE OF THE REASON FOUNDATION IN WEST LOS ANGELES WHO WORKED WITH CALIFORNIA TRANSPORTATION OFFICIALS IN GETTING THE GOAHEAD FROM THE LEGISLATURE THEY WISELY DECIDED TO LET THE BUILDERS PICK THE PROJECT RATHER THAN VICE VERSA AS IS THE POLITICAL HABIT THIS SHORT STRETCH OF ROAD IS GOING TO BE PROOF THAT A MARKET FOR SURFACE TRANSPORTATION ABANDONED DECADES AGO AFTER A PROMISING START INDEED WORKS TODAY IT SHOULD DRAW IMITATORS THOUGH THE POLITICAL FORWARD MOVEMENT WILL BE DIFFICULT AS WE HAVE NOTED IN COMMENTS THIS YEAR ON A SIMILAR PILOT EFFORT ENVISIONED IN ARIZONA ONCE CONGESTION PRICING AND THE DEREGULATED USE OF PARATRANSIT ARE ALLOWED THE PREMISE FOR GAWDAWFUL EXPENSIVE RAIL SCHEMES WILL BE SHATTERED THOSE ARE THE STAKES ALONG 10 MILES OF CALIFORNIA CANYON SEE RELATED LETTER LETTERS TO THE EDITOR DON'T RAILROAD THE RAILWAYS WSJ SEPT 21 1993 9308240017 YY93 MM09 9309210080 930831 A HIGHER AUTHORITY ON TAXES BY DANIEL LAPIN PUNDITS ARE ARGUING ABOUT THE IMPACT OF THE PRESIDENT'S NEWLY APPROVED TAX PACKAGE AS A RABBI I LOOK TO A HIGHER AUTHORITY THE PLAN WON'T WORK BECAUSE IT CONTRADICTS SPECIFIC AND TIMELESS PRINCIPLES EXPRESSED IN THE BIBLE THE PLAN'S EXCESSIVE RATES ITS INDIFFERENCE TO RESISTANCE BY THE RICH AND ITS EMPHASIS ON PUNITIVE INHERITANCE TAXES ALL FLY IN THE FACE OF THE WISDOM CONTAINED IN ANCIENT TEXTS REVERED BY TENS OF MILLIONS OF JEWS AND CHRISTIANS ALIKE THESE TEXTS ARE RELEVANT TODAY BECAUSE THE IDEOLOGIES THAT THE BIBLE FROWNS UPON INEVITABLY TURN OUT TO BE POOR PUBLIC POLICY THE OLD TESTAMENT IS FILLED WITH REFERENCES TO TAXATION BEGINNING WITH THE STORY OF JOSEPH AND PHARAOH IN GENESIS 41 BEWILDERED BY HIS DISTURBING DREAMS PHARAOH UNSUCCESSFULLY SEEKS EXPLANATIONS FROM HIS COURTIERS THEN HIS BUTLER REMEMBERS JOSEPH THE HEBREW WHO HAS BEEN UNJUSTLY IMPRISONED UPON HIS RELEASE JOSEPH INTERPRETS THE KING'S DREAMS TO BE GOD'S FOREWARNING OF SEVEN YEARS OF PLENTY TO BE FOLLOWED BY SEVEN YEARS OF FAMINE IN GENESIS 4134 JOSEPH RECOMMENDS TAXING THE EGYPTIAN ECONOMY DURING ITS FORTHCOMING SEVEN YEARS OF PLENTY LET PHARAOH APPOINT OFFICERS OVER THE LAND AND COLLECT UP A FIFTH PART DURING THE SEVEN YEARS OF PLENTY THAT AN OUTSIDER'S RECOMMENDATION TO TAX AN ENTIRE COUNTRY SHOULD PLEASE THE MONARCH STRETCHES CREDIBILITY THAT HIS SUBJECTS ALSO FOUND THE RECOMMENDATION PLEASING CAN MEAN ONLY ONE THING THE TAX RATE THEY WERE ANTICIPATING REPORTS TALMUDIC TRADITION WAS CONSIDERABLY HIGHER THAN JOSEPH'S 20 NOT ONLY WERE PHARAOH'S SUBJECTS RELIEVED BUT THE THOUGHT OF BEING ABLE TO RETAIN 80 OF THE FRUITS OF THEIR LABORS THREW THEM INTO THEIR WORK WITH RENEWED ENTHUSIASM AND ENERGY THIS TAX PLAN INVIGORATED THE EGYPTIANS AND AS ONE WOULD EXPECT THEIR ECONOMY THRIVED GENESIS 4147 CONFIRMS THAT THE EARTH BROUGHT FORTH BY HEAPS INCIDENTALLY THIS BIBLICAL PERSPECTIVE ON TAX RATES OF 20 CONFORMS ALMOST PRECISELY TO THE HIGH RATES LOW RATES SAME YIELD GRAPH PRINTED ON THESE PAGES SEVERAL TIMES DURING THE SUMMER'S BUDGET DEBATE THE GRAPH SHOWS THAT AMERICANS ARE WILLING TO YIELD UP TO 20 OF THEIR AGGREGATE LABORS FOR THE COMMON GOOD IN OTHER WORDS AMERICANS ENGINEERED THEIR AFFAIRS SO AS TO HAVE PAID THE SAME PERCENTAGE OF THEIR INCOME IN TAXES AS THE EGYPTIANS DID 3500 YEARS AGO JEWISH LAW THOUGH DERIVES THE LIMITS OF THE KING'S RIGHT TO TAX FROM THE PROPHET SAMUEL'S DIRE WARNING OF WHAT WILL BEFALL ISRAEL SHOULD THE ISRAELITES PERSIST IN THEIR PERVERSE DESIRE FOR A KING ACCORDING TO I SAMUEL 815 AND HE THE KING WILL TAKE ONETENTH OF YOUR SEED AND OF YOUR VINEYARDS HE WILL TAKE A TENTH OF YOUR SHEEP AND YOU WILL BECOME HIS SERVANTS AND YOU SHALL CRY OUT ON THAT DAY BECAUSE OF THE KING THAT YOU HAVE CHOSEN AND THE LORD WILL NOT HEAR YOU EVIDENTLY EVEN THE CRUEL SCENARIO DEPICTED BY SAMUEL COULD NOT ENVISION A LEGITIMATE KING CLAIMING MORE THAN 10 OF HIS OWN PEOPLE'S PRODUCE A KING WOULD IMPOSE HIGHER TAXES ONLY UPON HIS CONQUERED ENEMIES SURE ENOUGH IN JOSHUA 1713 THE IDEA IS PUT FORTH THAT HEAVY TAXATION IS TO BE IMPOSED ONLY UPON PEOPLE FOR WHOM YOU DO NOT CARE MUCH WHEN THE CHILDREN OF ISRAEL BECAME STRONG THEY PUT THE CANAANITES UNDER TAXATION BUT DID NOT UTTERLY DRIVE THEM OUT IN OTHER WORDS ALTHOUGH IT MAY OFFEND OUR MODERN SENSIBILITIES SCRIPTURE ADVISES US TO TAX HEAVILY ONLY THOSE PEOPLE WHOSE DEPARTURE FROM OUR COUNTRY WOULD BE WELCOMED FAILURE TO HEED THIS ANCIENT ADVICE WE ARE TOLD COULD RESULT IN REVOLUTION WHEREAS MY FATHER DID BURDEN YOU WITH A HEAVY YOKE I WILL ADD TO YOUR YOKE RECKLESSLY PROCLAIMED KING SOLOMON'S SON REHOBOAM AS HE RAISED TAX RATES I KINGS 1211 VERSE 18 REPORTS THAT REHOBOAM THEN SENT ADORAM THE TAX COLLECTOR TO MAKE GOOD ON HIS THREAT AND ALL ISRAEL STONED HIM WITH STONES SO THAT HE DIED THUS DID ISRAEL REBEL AGAINST THE HOUSE OF DAVID THIS REVOLT WHICH WAS SUPPORTED BY THE PROPHETS AND THEREFORE JUSTIFIED BY JEWISH LAW WAS NOT AGAINST THE KING'S RIGHT TO TAX BUT RATHER AGAINST THE EXCESSIVENESS OF THE TAX BURDEN THE CLINTON ADMINISTRATION'S INCREASE IN THE INHERITANCE TAX ALSO GOES AGAINST BIBLICAL EXHORTATION NUMBERS 368 INSISTS THE CHILDREN OF ISRAEL SHALL ENJOY EACH MAN THE INHERITANCE OF HIS FATHERS PEOPLE WILL INVENT LABOR AND CREATE TIRELESSLY IF THEY KNOW THAT IN SO DOING THEY ARE BETTERING THE LIVES OF THEIR CHILDREN AND THEIR GRANDCHILDREN REFERRING TO THE DAUGHTERS OF ZELFOHAD IN NUMBERS 277 THE LORD SAID THOU SHALL CAUSE THE INHERITANCE OF THEIR FATHER TO PASS TO THEM FINALLY CONSIDER PROVERBS 1224 IT DECLARES THAT THE HANDS OF THE DILIGENT SHALL PRODUCE WEALTH BUT THE LAZY WILL BE SUBJECT TO TAXATION ACCORDING TO THE 11TH CENTURY SAGE RABBI SOLOMON YITZCHAKI THESE WORDS WARN THAT EXCESSIVE TAXATION HINDERS PRODUCTIVITY AND COMES TO PASS ONLY THROUGH THE LAZINESS AND INDIFFERENCE OF CITIZENS WHO DECLINE TO RESIST THE OPPRESSION IN OTHER WORDS RESISTING A GOVERNMENT'S INSTINCT TO TAX REQUIRES VIGILANCE AND ENERGY AS THE PROPHET SAMUEL WARNED IF WE FAIL TO EXERT THE NECESSARY VIGILANCE AND ENERGY WE SHALL HAVE ONLY OURSELVES TO BLAME FOR THE CONSEQUENCES RABBI LAPIN IS PRESIDENT OF TOWARD TRADITION A MERCER ISLAND WASHBASED ORGANIZATION DEDICATED TO ADVANCING JUDEOCHRISTIAN VALUES AND RABBI OF THE PACIFIC JEWISH CENTER VENICE CALIF SEE RELATED LETTERS LETTERS TO THE EDITOR HOW PHARAOH TAXED HIS WAGE SLAVES WSJ SEPT 21 1993 9308310085 YY93 MM09 9309200170 930920 CANADIAN STORE SALES DROP OTTAWA CANADIAN DEPARTMENT STORE SALES IN AUGUST TOTALED 974 MILLION CANADIAN DOLLARS US741 MILLION A 63 DECLINE FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID AUGUST WAS THE FIFTH CONSECUTIVE MONTH IN WHICH DEPARTMENT STORE SALES WERE BELOW THEIR YEAREARLIER LEVEL 9309200169 930920 INTERNATIONAL DANISH TRADE SURPLUS GROWS COPENHAGEN DENMARK'S TRADE SURPLUS IN JUNE ROSE TO 46 BILLION DANISH KRONER 701 MILLION FROM 31 BILLION KRONER IN MAY ACCORDING TO DANMARK STATISTIK THE DANISH NATIONAL STATISTICS AGENCY 9309200168 930920 LAW MIT WINS BACKING OF APPEALS COURT ON FAIRNESS OF STUDENTAID PRACTICES BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT SIDING WITH THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY GAVE COLLEGES THE FIRST JUDICIAL SUPPORT FOR CARTELLIKE ARRANGEMENTS IN THE AWARDING OF STUDENT FINANCIAL AID IN A CASE THAT MIT AND IVY LEAGUE SCHOOLS VIEW AS CRITICAL TO THEIR FUTURE A THREEJUDGE US CIRCUIT COURT OF APPEALS PANEL IN PHILADELPHIA REVERSED A LOWER COURT'S RULING THAT MIT BROKE ANTITRUST LAWS WITH ITS FINANCIALAID PRACTICES THE JUDGES ORDERED THE US DISTRICT COURT IN PHILADELPHIA TO RECONSIDER MIT'S ARGUMENTS THAT A PRICEFIXING ARRANGEMENT THAT GOVERNED FINANCIAL AID AMONG MIT AND THE IVY SCHOOLS HAD SOCIAL WELFARE JUSTIFICATIONS THE 2TO1 DECISION WAS THE FIRST FAVORABLE DEVELOPMENT FOR HIGHER EDUCATION IN A FOURYEAR STRUGGLE WITH THE JUSTICE DEPARTMENT OVER THE FAIRNESS OF PRACTICES FOR SETTING TUITION SALARY AND FINANCIAL AID AT PRESTIGIOUS COLLEGES THE EIGHT IVY LEAGUE SCHOOLS HAVE ALREADY SETTLED IN THE CASE AGREEING NOT TO EXCHANGE PRICE WAGE AND AID INFORMATION AS THEY HAD FOR MANY YEARS BEFORE THE GOVERNMENT BEGAN ITS CIVIL INVESTIGATION MIT PRESIDENT CHARLES VEST CALLED THE APPEALS DECISION AN IMPORTANT STEP TOWARD AN ULTIMATE VICTORY FOR ACCESS TO HIGHER EDUCATION IN AMERICA DAN HAMILTON A JUSTICE DEPARTMENT SPOKESMAN SAID THE AGENCY WAS DISAPPOINTED AND WAS CONSIDERING ITS OPTIONS WHICH INCLUDE AN APPEAL ALTHOUGH MIT IS THE LONE REMAINING DEFENDANT IN THE CASE LEGAL SCHOLARS SAY A FINAL VICTORY FOR THE SCHOOL WOULD LAY THE GROUNDWORK FOR AN IVY LEAGUE COURT ACTION TO VACATE THE CONSENT DECREE OR FOR A LEGISLATIVE PUSH TO GIVE COLLEGES A FORMAL ANTITRUST EXEMPTION THE JUSTICE DEPARTMENT SUED MIT OVER A PRACTICE CALLED OVERLAP A SYSTEM THAT IT THE IVIES AND 14 OTHER PRIVATE NORTHEAST COLLEGES USED FOR 33 YEARS TO SET FINANCIAL AID FOR STUDENTS WHO WERE ACCEPTED BY MORE THAN ONE OF THE SCHOOLS THE SCHOOLS MET EVERY APRIL COMPARED NOTES AND AMENDED VARIANCES IN AID AWARDS AIMING TO MAKE A STUDENT'S FAMILY CONTRIBUTION OR NET TUITION PRICE THE SAME NO MATTER WHAT SCHOOL HE OR SHE CHOSE TO ATTEND THE MEETINGS CEASED IN 1991 UNDER GOVERNMENT PRESSURE IN ITS RULING THE APPEALS COURT AGREED WITH THE JUSTICE DEPARTMENT AND THE DISTRICT COURT THAT OVERLAP IS COMMERCIAL ACTIVITY COVERED BY THE SHERMAN ANTITRUST ACT CONTRARY TO MIT'S ARGUMENTS BUT JUDGES ROBERT COWEN AND CAROL LOS MANSMANN FOUND THAT TO SOME EXTENT OVERLAP PROMOTED EQUALITY OF ACCESS TO HIGHER EDUCATION AND ECONOMIC AND CULTURAL DIVERSITY SAYING THAT THE PROPORTION OF MINORITY STUDENTS AT MIT HAD RISEN GREATLY DURING THE OVERLAP YEARS IN A DISSENTING OPINION JUDGE JOSEPH F WEIS SAID THE CASE SHOULD BE DISMISSED ARGUING THAT OVERLAP WAS CHARITABLE ACTIVITY NOT COVERED BY THE SHERMAN ACT MIT ARGUED THAT OVERLAP EXPANDED OPPORTUNITY FOR NEEDY STUDENTS BY ENSURING THAT FINANCIAL AID WAS NOT WASTED ON STUDENTS WHOSE NEED WAS INITIALLY OVERESTIMATED THE APPEALS COURT HELD THAT THESE ASSERTED PROCOMPETITIVE AND PROCONSUMER FEATURES DICTATED A MORE CAREFUL REVIEW BY THE LOWER COURT OF OVERLAP'S ECONOMIC IMPACT SOME OBSERVERS SAID THAT DESPITE THE RULING MIT MAY FIND ITS CASE HARD TO WIN THE SAME JUDGE WILL HEAR THE ARGUMENTS AGAIN AND HE WON'T BE ANY MORE PERSUADED SAID SCOTT MASTEN A PROFESSOR AT THE UNIVERSITY OF MICHIGAN DONALD CARLSON A WASHINGTON DC ATTORNEY SAID THAT ULTIMATELY ONLY CONGRESS COULD GIVE MIT AND THE IVY SCHOOLS RELIEF BECAUSE AS A LEGAL MATTER OVERLAP WAS A STANDARD PRICE CONSPIRACY MESSRS MASTEN AND CARLSON HAVE WRITTEN ARTICLES ON THE CASE AND SYMPATHIZE WITH OVERLAP EVIDENCE INTRODUCED BY THE GOVERNMENT IN THE CASE ALSO SHOWED THAT THE IVY SCHOOLS AND SOMETIMES MIT MET SEPARATELY OUTSIDE THE OVERLAP GROUP TO DISCLOSE PLANNED TUITION AND SALARY INCREASES TO EACH OTHER WELL IN ADVANCE OF SETTING THEM HOWEVER TUITION AND SALARY AREN'T AT ISSUE IN THE MIT SUIT 9309200167 930920 WHO'S NEWS SA HOLDINGS INC SA HOLDINGS INC PLANO TEXAS JAMES HUGHES VICE PRESIDENT TELECOMMUNICATIONS OPERATIONS AND KENNETH F REIMER A CONSULTANT AND FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROMA CORP WERE ELECTED TO THE BOARD THE APPOINTMENTS INCREASE THE BOARD OF THE TELECOMMUNICATIONS CONCERN TO NINE MEMBERS 9309200166 930920 WHO'S NEWS TRIDEX CORP TRIDEX CORP WESTPORT CONN RICHARD L COTE WAS APPOINTED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF COMPUTER PERIPHERALS MR COTE 52 YEARS OLD JOINED TRIDEX IN MARCH AS VICE PRESIDENT OF OPERATIONS PLANNING AND CONTROL HE WILL CONTINUE THOSE DUTIES IN ADDITION TO THE FINANCIAL ONES PREVIOUSLY HANDLED BY SETH M LUKASH THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9309200165 930920 FINANCING BUSINESS CORNING INC CORNING INC SAID IT SOLD 100 MILLION OF DEBENTURES WITH A 675 COUPON DUE IN 2013 PROCEEDS WILL BE USED TO REFINANCE PART OF THE SHORTTERM FINANCING CORNING USED TO BUY DAMON CORP THIS MONTH THE ISSUE WAS SOLD UNDER A SHELF REGISTRATION FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AUG 4 THE OFFERING WAS COMANAGED BY GOLDMAN SACHS & CO AND LAZARD FRERES & CO CORNING OF CORNING NY IS A SPECIALTY MATERIALS FIBER OPTICS HOUSEHOLD PRODUCTS AND LAB SERVICES CONCERN 9309200164 930920 WHO'S NEWS WHITTAKER CORP WHITTAKER CORP LOS ANGELES EDWARD R MULLER 41 YEARS OLD WAS ELECTED TO THE BOARD INCREASING ITS SIZE TO EIGHT DIRECTORS MR MULLER WHO IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MISSION ENERGY CO UNIT OF SCECORP PREVIOUSLY WAS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WHITTAKER AN AEROSPACE CONCERN 9309200163 930920 FAMED RESTAURANT AT TRADE CENTER SEEKS IMAGE CHANGE PORT AUTHORITY SEEKS OPERATOR TO GIVE PATRONS AS GOOD A VIEW OF FOOD AS OF SKYLINE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NICE VIEW LOUSY FOOD THAT OFTEN HAS BEEN THE CRITICISM OF WINDOWS ON THE WORLD THE FAMED RESTAURANT THAT SITS ATOP WORLD TRADE CENTER TOWER 1 THE FOOD HAS NEVER MATCHED THE VIEW NOW THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY THE OWNER AND OPERATOR OF THE WORLD TRADE CENTER WANTS TO CHANGE THE RESTAURANT'S IMAGE LAST WEEK A GROUP OF PROMINENT RESTAURANT OWNERS QUIETLY TOURED THE FACILITY EACH WITH AN EYE TOWARD SNARING ONE OF THE HIGHEST PROFILE DINING ESTABLISHMENTS IN THE COUNTRY A LIST OF FINALISTS IN A BIDDING COMPETITION TO RUN THE RESTAURANT WILL BE ANNOUNCED DEC 10 THE RESTAURANT ON THE 106TH AND 107TH FLOORS HAS BEEN CLOSED SINCE A FEB 26 BOMBING ROCKED THE COMPLEX WHILE THE EXPLOSION DIDN'T DAMAGE THE RESTAURANT IT DID WREAK HAVOC IN THE FOOD PREPARATION AREAS MOREOVER THE BOMB FORCED THE TRADE CENTER TO CLOSE ITS PARKING AREAS TO THE PUBLIC INDEFINITELY FOR SAFETY REASONS NO ONSITE PARKING WOULD CREATE SEVERAL HEADACHES FOR THE NEW OPERATORS CONSIDERED THE THIRDLARGEST GROSSING RESTAURANT IN THE US WINDOWS ON THE WORLD HAD 18 MILLION IN RECEIPTS LAST YEAR BUT THAT WAS DOWN FROM 22 MILLION IN 1987 AND IN RECENT YEARS COMPLAINTS ABOUT THE FOOD HAVE GROWN LOUDER WHILE THE WINE LIST REMAINS ONE OF THE FINEST IN THE COUNTRY CRITICS SAY WINDOWS HAS FAILED TO ESTABLISH ITSELF AS A TOPFLIGHT RESTAURANT BECAUSE THE PORT AUTHORITY DOESN'T UNDERSTAND WHAT IT TAKES TO RUN A FOURSTAR ESTABLISHMENT THIS MAY BE PART OF THE PROBLEM AS THE OWNER OF AIRPORTS AND BUS TERMINALS THE PORT AUTHORITY'S FOOD SERVICE TENDS TOWARD HOT DOGS AND PIZZA SLICES RATHER THAN SWORDFISH AND FILET MIGNON STILL THOSE WITH KNOWLEDGE OF THE RESTAURANT BUSINESS BELIEVE QUITE A COMPETITION COULD EVOLVE AS BIGNAME CHEFS AND RESTAURATEURS FROM AROUND THE NATION BID FOR A CHANCE TO OPERATE THE DINING FACILITY LANDING THE RESTAURANT HOWEVER WILL NOT BE CHEAP THE NEW OPERATORS WILL NEED TO SINK MOSTLY THEIR OWN MONEY INTO THE EXPECTED MAKEOVER ESTIMATED TO COST MORE THAN 10 MILLION I'M NOT SURE THAT'S A GOOD IDEA SAYS TIM ZAGAT COOWNER OF THE ZAGAT RESTAURANT SURVEY BY FORCING THE LEASEHOLDER TO PAY FOR MUCH OF THE CAPITAL IMPROVEMENTS YOU PLACE STRAIN ON THE RESTAURANT OPERATOR THEY MAY BE FORCED TO CUT CORNERS TO MAKE MORE MONEY TO COVER COSTS MR ZAGAT CONTENDS THAT IF THE WORLD TRADE CENTER WANTS A TREMENDOUS RESTAURANT IT NEEDS TO LESSEN THE FINANCIAL BURDENS OF RENOVATION ON THE OPERATOR AND THE PORT AUTHORITY NOT ONLY EXPECTS A WONDERFUL IMPRESSIVE INTERNATIONAL MENU BUT ALSO THE ABILITY TO FEED HUNDREDS IN A BANQUET SITUATION IT'S VERY DIFFICULT TO DELIVER GASTRONOMICAL EXCITEMENT WHEN YOU HAVE TO FEED SO MANY PEOPLE FRETS ONE CONTENDER THE RESTAURANT CURRENTLY IS OPERATED BY INHILCO A UNIT OF HILTON INTERNATIONAL CO LONDON WHICH IS A UNIT OF LADBROKE GROUP PLC INHILCO HOLDS THE RESTAURANT'S LEASE UNTIL THE END OF 1994 AND WILL BID FOR THE NEW CONTRACT DESPITE THE PASTING ITS FOOD HAS TAKEN FROM SOME CRITICS IT'S ALWAYS EASIER TO CRITICIZE THAN TO OPERATE SAYS JEANCLAUDE NOEL SENIOR VICE PRESIDENT FOR THE AMERICAS AT HILTON INTERNATIONAL WE REALIZE THAT THE RESTAURANT NEEDS A NEW LOOK AND WE PLAN TO PARTICIPATE IN THE BIDDING PROCESS AS FOR THE LIST OF ALLSTAR CHEFS AND OWNERS LOOKING AT WINDOWS THEY MAY BE SURPRISED TO DISCOVER WHAT A LARGE AND DIFFICULT RESTAURANT IT IS TO OPERATE THE PLAYERS EXPRESSING INTEREST SO FAR INCLUDE HYATT HOTELS CHICAGO AS WELL AS A GROUP OF HIGH PROFILE NEW YORK RESTAURANT OPERATORS WARNER LEROY OWNER OF TAVERN ON THE GREEN THE NATION'S HIGHEST GROSSING INDEPENDENT RESTAURANT ALAN STILLMAN OWNER OF SMITH & WOLLENSKY AND CITE JOSEPH BAUM AND MICHAEL WHITEMAN MANAGERS OF THE RAINBOW ROOM IN ROCKEFELLER CENTER SHELDON FIREMAN OWNER OF TRATTORIA DELL'ARTE JEROME KRETCHMER OWNER OF GOTHAM BAR & GRILL AND LARRY FORGIONE CHEF AND OWNER OF AMERICAN PLACE 9309200162 930920 LETTERS TO THE EDITOR SEPARATION OF TWINS ELICITS MANY QUESTIONS MANY QUESTIONS SUCH AS THOSE POSED IN YOUR AUG 26 EDITORIAL MEDICAL MIRACLES HAVE BEEN ASKED REGARDING THE DECISION TO SURGICALLY SEPARATE CONJOINED TWINS AMY AND ANGELA LAKEBERG MOST OF THEM DEALT WITH THE NOTION OF WHETHER OR NOT THE RISK EXCEEDED THE BENEFIT OTHERS ASKED WHY SUCH AN EXPENSIVE OPERATION SHOULD BE PERFORMED WHEN THERE APPEARED LITTLE CHANCE OF SURVIVAL THESE ARE GOOD QUESTIONS FOR US TO DISCUSS THE DEBATE SPARKED BY THE DECISION OF CHILDREN'S HOSPITAL OF PHILADELPHIA TO EVALUATE AND SEPARATE THE TWINS OFFERS BUT A HINT OF THE ENORMOUS ISSUES OUR NATION WILL HAVE TO CONSIDER AS IT MOVES TOWARD ADDRESSING HEALTHCARE REFORM QUESTIONS THAT UNTIL NOW WERE THE STRICT PROVINCE OF DOCTORS PATIENTS HOSPITALS AND HEALTHCARE PROFESSIONALS WHAT PROCEDURES SHOULD BE PERFORMED AND ON WHOM HOW WILL WE TREAT UNUSUAL AND COMPLEX PROBLEMS IS RATIONING WHICH SOME HAVE USED AS THE BASIS FOR THEIR ARGUMENTS AGAINST OUR PERFORMING THE SURGERY INEVITABLE WHO WILL DECIDE IN THINKING ABOUT THESE ISSUES FIVE POINTS COME TO MIND FIRST A HOSPITAL AND A DOCTOR SHOULD NOT BE ASKED TO RATION CARE SECOND IN HEALTH CARE ONE SIZE DOES NOT FIT ALL ANY REFORM EFFORT WILL REQUIRE A PROGRAM THAT RECOGNIZES THE DIVERSE NATURE OF OUR POPULATION THAT CHILDREN ARE DIFFERENT FROM ADULTS THAT PEOPLE TEND TO GET DIFFERENT ILLNESSES AT DIFFERENT STAGES IN LIFE THIRD ACCESS TO SPECIALTY CARE MUST BE ASSURED FOR ALL ESPECIALLY THE CHRONICALLY ILL FINALLY WE MUST RECOGNIZE THAT SOME OF THE PROBLEMS IN HEALTH CARE STEM FROM COSTLY SOCIAL MALADIES WE CAN NO LONGER ACCEPT OUR CHILDREN BEING RANDOMLY KILLED BY GUNFIRE OR HARMED BY A PREVENTABLE INJURY THIS TOLL MUST AND CAN BE LESSENED THROUGH EDUCATION AND POLICY CHANGES THESE ARE BUT SOME OF THE ISSUES ALL OF US MUST DISCUSS DEBATE AND DECIDE WHETHER A HOSPITAL PROFESSIONAL OR A PROSPECTIVE PATIENT OR A SICK CHILD WE WILL ALL HAVE A TREMENDOUS STAKE IN THE OUTCOME 9309200161 930920 CORRECTIONS & AMPLIFICATIONS ETHYL CORP SAID THE GOTTWALD FAMILY WHICH OWNS ABOUT 18 OF THE COMPANY'S COMMON STOCK WILL HOLD THE BIGGEST STAKE IN A COMPANY ETHYL PLANS TO FORM BY SPINNING OFF ITS CHEMICAL OPERATIONS AN ARTICLE FRIDAY INCORRECTLY STATED THAT THE GOTTWALD FAMILY WOULD CONTROL A MAJORITY OF THE NEW COMPANY'S SHARES AFTER A PRIVATE PLACEMENT OF STOCK WITH THE FAMILY CHARLES A HEIMBOLD JR PRESIDENT OF BRISTOLMYERS SQUIBB CO WAS NAMED TO ITS BOARD IN 1989 A WHO'S NEWS ARTICLE THURSDAY INCORRECTLY STATED THAT HE WAS NAMED A DIRECTOR IN 1992 EUROCLEAR A CLEARING AND SETTLEMENT SYSTEM FOR INTERNATIONALLY TRADED SECURITIES IS OWNED BY MORE THAN 2000 FINANCIAL INSTITUTIONS WORLDWIDE AND OPERATED BY MORGAN GUARANTY TRUST CO OF NEW YORK A SUBSIDIARY OF JP MORGAN & CO IN AN ARTICLE FRIDAY IT WAS INCORRECTLY STATED THAT EUROCLEAR IS OWNED BY MORGAN GUARANTY TRUST SHELL CANADA LTD SAID IT RECENTLY HAD BEEN SUPPLYING 4 MILLION CANADIAN DOLLARS US3 MILLION TO C5 MILLION A MONTH OF PETROLEUM PRODUCTS TO TWO GASOLINE RETAILERS WITHOUT RECEIVING PAYMENT AN ARTICLE FRIDAY SAID INCORRECTLY THAT THE RETAILERS PAY LESS GAS CO AND CANADIAN TURBO INC HAD COMBINED OPERATING LOSSES OF C4 MILLION TO C5 MILLION A MONTH GTECH CORP DESIGNS OPERATES AND SERVICES COMPUTERIZED NETWORKS FOR LOTTERIES IN WEDNESDAY'S WHO'S NEWS COLUMN THE COMPANY WAS INCORRECTLY DESCRIBED AS A VIDEO GAME MAKER EDWARD D HARRIS JR 56 YEARS OLD WAS NAMED A DIRECTOR OF CALIFORNIA WATER SERVICE CO SUCCEEDING ROBERT J GLASER WHO RETIRED AN ITEM IN THURSDAY'S WHO'S NEWS COLUMN MISSTATED MR HARRIS'S AGE 9309200160 930920 EC MINISTERS MEET TO PLACATE FRENCH CRITICISM NEW OPPOSITION BY FRANCE TO BLAIR HOUSE ACCORD THREATENS TRADE TALKS BY JULIE WOLF AND CHARLES GOLDSMITH STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY'S LONGRUNNING INTERNAL BATTLE OVER LAST YEAR'S ECUS FARM PACT COULD COME TO A BOILING POINT TODAY WHEN 35 EC MINISTERS CONVERGE ON THE EC CAPITAL TO TRY TO PLACATE FRANCE WITHOUT SINKING SEVENYEAROLD WORLD TRADE TALKS AGAINST THE BACKDROP OF RENEWED THREATS FROM PARIS TO VETO THE BLAIR HOUSE AGREEMENT REACHED IN NOVEMBER BETWEEN WASHINGTON AND BRUSSELS THE AGRICULTURE AND FOREIGN MINISTERS WILL TRY TO CRAFT A COMPROMISE THAT CALLS FOR CLARIFICATION OF THE PACT WITHOUT RENEGOTIATION FRANCE IS EXPECTED TO BE THE ONLY EC GOVERNMENT TO DEMAND THAT THE DEAL BE REOPENED REGARDLESS OF THE CONSEQUENCES ALTHOUGH A NUMBER OF OTHERS WILL CRITICIZE THE ARRANGEMENT AS OVERLY HARSH ON COMMUNITY FARMERS ON SUNDAY BRITISH PRIME MINISTER JOHN MAJOR RULED OUT REOPENING THE BLAIR HOUSE DEAL AND WARNED FRANCE THAT FAILURE TO CONCLUDE THE WORLD TRADE TALKS COULD HAVE DEVASTATING EFFECTS SPEAKING IN JAPAN MR MAJOR NAMED FRANCE AS THE MAIN IMPEDIMENT TO A TRADE DEAL BUT WITHOUT GIVING DETAILS HE SAID BRITAIN COULD HELP FRANCE OUT OF ITS PROBLEMS GIVEN THE WIDE GULF BETWEEN EC COUNTRIES ON THE EVE OF THE MEETING DIPLOMATS SAID THE MINISTERS MIGHT POSTPONE A SHOWDOWN BY AGREEING TO CONTINUE DISCUSSIONS IN EARLY OCTOBER MOST COMMUNITY COUNTRIES AND THE EC COMMISSION WOULD BE PREPARED TO SEE THE MEETING RESULT IN A VAGUE CALL FOR GREATER FLEXIBILITY IN THE BLAIR HOUSE DEAL BUT OFFICIALS PREPARING TODAY'S MEETING SAID THEY DOUBTED THAT THIS WOULD BE ENOUGH FOR PARIS WHICH IS THOUGHT TO WANT TO NAIL DOWN SPECIFIC CHANGES IN BLAIR HOUSE WE WILL NOT ACCEPT THE SOCALLED BLAIR HOUSE ACCORD AS IT STANDS NEITHER NOW NOR AT THE END OF DECEMBER FRENCH PRIME MINISTER EDOUARD BALLADUR SAID OVER THE WEEKEND REFERRING TO THE DEC 15 DEADLINE THAT TOP OFFICIALS AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE HAVE SET FOR COMPLETION OF THE CURRENT URUGUAY ROUND OF GATT TALKS IN A FINAL STRATEGY SESSION BEFORE TODAY'S MEETING IN BRUSSELS MR BALLADUR CALLED KEY MINISTERS TOGETHER IN PARIS ON SUNDAY TRANSATLANTIC FRICTION OVER FRANCE'S RESISTANCE TO THE BLAIR HOUSE ACCORD THREATENS TO BE COMPOUNDED BY GROWING OPPOSITION AMONG EUROPEAN COUNTRIES TO A NEW CARTOON CHANNEL LAUNCHED BY TURNER BROADCASTING SYSTEM INC OF THE US ON FRIDAY BELGIUM CITED CULTURAL CONSIDERATIONS IN BLOCKING DISTRIBUTION OF TED TURNER'S NEW TNT & CARTOON NETWORK IN BRUSSELS FRANCE WHICH IS CONCERNED ABOUT ITS FILM INDUSTRY'S BEING OVERRUN BY BIGBUDGET HOLLYWOOD MOVIES CONTENDS THAT THE NEW LONDONBASED CARTOON CHANNEL INFRINGES AN EC LAW DESIGNED TO ENSURE THAT A MAJORITY OF PROGRAMMING ORIGINATE IN EUROPE IN AN INTERVIEW WITH THE BELGIAN FRENCH LANGUAGE NEWSPAPER LE SOIR MR TURNER SAID IN ATLANTA THAT THE BROUHAHA OVER HIS NEW CHANNEL WAS BASED ON A MISUNDERSTANDING AND PREDICTED THAT A SOLUTION WOULD BE FOUND WE HAVE MET THE FRENCH AUTHORITIES AND WE ARE GOING TO MEET THE BELGIANS AND FIND A COMPROMISE HE SAID WE HAVE NO INTENTION OF IMPOSING OURSELVES ON ANYBODY MR TURNER SAID HE IS VERY SURPRISED BY THE CONTROVERSY BECAUSE WE'RE NOT OFFERING HORROR CARTOONS BUT PERFECTLY HARMLESS THINGS LIKE YOGI BEAR AND HE CRITICIZED THE EC ATTEMPT TO ENSURE A MAJORITY OF EUROPEANMADE PROGRAMMING AS AMATEURISH THESE REQUIREMENTS FOR NATIONAL PRODUCTIONS ARE SO EASY TO GET AROUND THAT IT IS LAUGHABLE IF WE LAUNCHED A NIGHTTIME PAYTV SERVICE IN FRANCE IT WOULD COST US VIRTUALLY NOTHING IT WOULD BE OF NO INTEREST BUT IT WOULD SATISFY THE REGULATIONS AT TODAY'S MEETING IN BRUSSELS THE MOST UNSATISFACTORY OUTCOME IN THE MINDS OF ALL MINISTERS WOULD BE A COLLAPSE OF THE NEGOTIATING SESSION IN ACRIMONY THIS WOULD PLUNGE THE EC ALREADY REELING FROM LAST MONTH'S CURRENCY TURMOIL INTO A CRISIS AS WELL AS WRECK THE WORLD TRADE NEGOTIATIONS SO FAR THE EC HAS MANAGED TO AVOID A FRENCH VETO BY REFUSING TO PUT BLAIR HOUSE TO A VOTE UNTIL THERE IS A WIDER ACCORD TO WRAP UP THE URUGUAY ROUND BUT MR BALLADUR UNDER PRESSURE FROM THE COUNTRY'S MILITANT FARMERS AS WELL AS GAULLIST LEADER JACQUES CHIRAC WANTS THE FARM ISSUE DEALT WITH NOW IF THE OTHER 115 GATT COUNTRIES MANAGE TO REACH AN ACCORD LATER THIS YEAR COVERING ISSUES RANGING FROM SERVICES TO TEXTILES IT WILL BE VERY DIFFICULT FOR FRANCE ALONE TO RESIST THE BLAIR HOUSE ACCORD CALLS FOR A 21 CUT IN THE VOLUME OF SUBSIDIZED FARM EXPORTS OVER SIX YEARS AMONG OTHER SUGGESTED CHANGES FRANCE WANTS TO EXCLUDE SOME EXISTING EC STOCKS FROM THE SUBSIDY CUTS AND TO SHIFT THE BULK OF THE CUTS FROM THE BEGINNING TOWARD THE END OF THE SIXYEAR PERIOD ON FRIDAY THE EC COMMISSION INTENSIFIED ITS EFFORTS TO HEAD OFF A CLASH WHEN IT STRUCK A CONCILIATORY TONE IN A PAPER RESPONDING TO A SERIES OF FRENCH QUESTIONS ON BLAIR HOUSE THE COMMISSION SAID THERE WAS SOME MERIT IN CRITICISMS OF THE ECUS PACT ESPECIALLY IN LIGHT OF THE EC'S MONETARY UPHEAVALS WHICH ARE SWELLING COMMUNITY FARM SPENDING BUT AT THE SAME TIME IN A SEPARATE DOCUMENT SENT TO TODAY'S MEETING THE COMMISSION SAID THERE IS LITTLE LEEWAY TO CHANGE THE BLAIR HOUSE DEAL ESPECIALLY GIVEN WASHINGTON'S OPPOSITION TO SUCH A MOVE THE COMMISSION CONSIDERS THAT ADDITIONAL CHANGES MAY WELL BE ADVISABLE IT IS AWARE HOWEVER THAT THE BLAIR HOUSE AGREEMENT WAS THE RESULT OF EXTREMELY DIFFICULT NEGOTIATIONS WITH THE UNITED STATES WHICH IS ITSELF NOT PREPARED TO RECONSIDER THE ISSUE THE DOCUMENT SAID MUCH WILL DEPEND ON HOW FAR FRANCE PUSHES ITS EC PARTNERS AND WHAT ROLE GERMANY PLAYS IN THE TALKS GERMANY HAS SENT OUT MIXED SIGNALS ABOUT THE FRENCH DEMANDS BUT LAST WEEK GERMAN MINISTERS AND SPOKESMEN STRONGLY REJECTED RENEGOTIATING BLAIR HOUSE FRENCH PRESIDENT FRANCOIS MITTERRAND IS TO MEET TODAY WITH GERMAN CHANCELLOR HELMUT KOHL IN WHAT IS BILLED AS A PRIVATE VISIT BY MR KOHL TO PARIS A COMMISSION SPOKESMAN SAID BRUSSELS IS DETERMINED TO ENSURE THAT THE MINISTERS DON'T LIMIT THE NEGOTIATING POWERS OF SIR LEON BRITTAN THE EC'S FOREIGN TRADE COMMISSIONER BY GIVING HIM PRECISE ORDERS WE DON'T NEED A NEW MANDATE WE WILL EXPLAIN TO THE MINISTERS THE NEED FOR THE COMMISSION TO HAVE FLEXIBILITY TO TALK TO OUR PARTNERS THE SPOKESMAN SAID 9309200159 930920 ENTERPRISE SBA'S LOANGUARANTEE PROGRAM IS THREATENED BY FRAUD OFFICIALS FEAR PROBLEMS IN CALIFORNIA MAY INDICATE A WIDER VULNERABILITY BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE SMALL BUSINESS ADMINISTRATION'S MULTIBILLIONDOLLAR LOANGUARANTEE PROGRAM HAS BEEN HIT BY A WAVE OF FRAUDULENT LOAN APPLICATIONS AND SLOPPY LENDING PRACTICES IN ITS BIGGEST MARKET CALIFORNIA THE PROBLEMS WHICH HAVE ATTRACTED ALMOST NO PUBLIC ATTENTION COULD COST TAXPAYERS MILLIONS OF DOLLARS IN PAYMENTS ON GUARANTEES FOR FAILED LOANS CIVIL AND CRIMINAL INVESTIGATIONS ARE PROCEEDING AGAINST DOZENS OF BUSINESS OWNERS AND OTHERS INVOLVED IN THE SUSPECTED FRAUDS ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION SOME SBA OFFICIALS FEAR THAT WHAT HAS SURFACED IN CALIFORNIA PARTICULARLY SOUTHERN CALIFORNIA IS A WARNING SIGN OF POSSIBLE TROUBLES NATIONWIDE IN THE FASTGROWING LOAN PROGRAM THERE IS A CONCERN THE PROGRAM IS VULNERABLE SAYS ONE AGENCY OFFICIAL THE SBA'S OFFICE OF INSPECTOR GENERAL THE AGENCY'S INTERNAL WATCHDOG HAS RECOMMENDED TIGHTER SCRUTINY OF THE PROGRAM NATIONWIDE AS A RESULT THE SBA IS INSTITUTING ADDITIONAL CHECKING ON A TEST BASIS IN SOME EASTERN CITIES TO SEE IF A BROADER FRAUD PROBLEM EXISTS OFFICIALS SAY THE PROBLEMS REVOLVE AROUND A RASH OF APPLICATIONS RECEIVED IN CALIFORNIA SBA OFFICES THAT CONTAINED FALSE TAX RETURNS SHOWING INFLATED LEVELS OF INCOME MANY OF THESE APPLICATIONS PEOPLE FAMILIAR WITH THE MATTER SAY WERE PREPARED BY SOCALLED PACKAGERS INDEPENDENT CONSULTANTS WHO SPECIALIZE IN PUTTING TOGETHER SBA LOAN APPLICATIONS FRAUDULENT APPLICATIONS FROM PACKAGERS ARE BEING LOOKED AT IN CONNECTION WITH UNACCEPTABLY HIGH DEFAULT RATES AT ONE OF THE BIGGEST SBA LENDERS IN CALIFORNIA AGENCY OFFICIALS SAY COMPOUNDING THIS PROBLEM WAS THE FACT THAT THE SBA ALLOWED THE LENDER TO MAKE TENS OF MILLIONS OF DOLLARS IN GUARANTEED LOANS AFTER IT HAD BEEN IDENTIFIED BY FEDERAL REGULATORS AS ENGAGING IN UNSOUND PRACTICES THE DIFFICULTIES IN CALIFORNIA HAVE CROPPED UP DURING A PERIOD OF ENORMOUS GROWTH FOR THE LOANGUARANTEE PROGRAM AS TRADITIONAL CREDIT SOURCES DRIED UP IN RECENT YEARS SMALL BUSINESSES TURNED TO THE SBA PROGRAM WHICH GUARANTEES BANKS AGAINST LOSSES OF UP TO 90 OF A LOAN SBA OFFICIALS EXPECT LOANS MADE UNDER THE GUARANTEE PROGRAM IN FISCAL 1993 TO REACH 64 BILLION DOUBLE THE LEVEL OF FIVE YEARS AGO AND TO INCREASE TO AS MUCH AS 8 BILLION NEXT YEAR LOSSES FROM LOANS GONE SOUR HAVE BEEN IN THE RANGE OF 300 MILLION TO 400 MILLION ANNUALLY OVER THE PAST FIVE YEARS AN SBA SPOKESMAN SAYS IN 1990 SBA OFFICIALS IN SOUTHERN CALIFORNIA BEGAN NOTICING LOAN APPLICATIONS WITH TAX RETURNS SHOWING UNUSUALLY HIGH PROFIT MARGINS FOR THE INDUSTRIES THE BUSINESSES WERE IN AGENCY OFFICIALS SAY SUSPECT APPLICATIONS STARTED APPEARING BY THE DOZENS SOMEHOW PEOPLE GOT IT IN THEIR MINDS THAT SUPPLYING FALSE INFORMATION WAS AN ACCEPTABLE WAY TO QUALIFY FOR A LOAN SAYS MIKE LEE DIRECTOR OF THE SBA'S LOS ANGELES DISTRICT OFFICE LAWENFORCEMENT OFFICIALS AND OTHERS SAY THE COMPUTER AGE HAS MADE THE SBA PROGRAM ALONG WITH OTHER LENDING PROGRAMS MORE VULNERABLE TO FRAUD WITH THE ADVENT OF COMPUTERTAX SOFTWARE IT IS EASY TO PREPARE AS MANY VERSIONS OF A TAX RETURN AS ONE MIGHT WANT SAYS STEVE STULTZ OWNER OF STULTZ FINANCIAL A NEWPORT BEACH CALIF CONSULTING FIRM THAT SPECIALIZES IN SBAGUARANTEED LOANS IN RESPONSE TO THE FALSE TAX FORMS SBA OFFICES IN CALIFORNIA BEGAN CHECKING TO SEE WHETHER TAX RETURNS SUBMITTED TO THE SBA MATCHED RETURNS SUBMITTED TO THE INTERNAL REVENUE SERVICE BY EARLY THIS YEAR AN IRS CHECK WAS BEING DONE ON ALL APPLICATIONS IN SOUTHERN CALIFORNIA SBA LENDERS ALSO BEGAN MAKING IRS CHECKS WHEN GOVERNMENT FUNDING CORP A MAJOR SBA LENDER IN LOS ANGELES BEGAN CROSSCHECKING ALL WOULDBE BORROWERS IN APRIL WE WERE REJECTING 20 OF OUR APPLICATIONS FOR HAVING FALSE TAX INFORMATION SAYS SIDNEY MORAY CHIEF EXECUTIVE OFFICER OF THE FIRM HE AND OTHERS SAY THE NUMBER HAS RECENTLY DROPPED TO NEARLY ZERO AS WORD HAS GOTTEN OUT THAT RETURNS ARE BEING CHECKED MORE THAN 100 CASES HAVE BEEN REFERRED FOR CIVIL OR CRIMINAL INVESTIGATION IN CONNECTION WITH SUSPECTED FRAUDULENT LOAN APPLICATIONS ACCORDING TO PEOPLE FAMILIAR WITH THE PROBES SOME ARE BEING HANDLED BY THE US ATTORNEY'S OFFICE IN LOS ANGELES UNDER A NEW FASTTRACK CIVILFRAUD PROGRAM SAYS LEON WEIDMAN CHIEF OF THE OFFICE'S CIVIL DIVISION ONE RECENT SBA LOANFRAUD CASE INVOLVING A LIQUOR STORE SEEKING A 150000 LOAN USING FAKE TAX RETURNS WAS SETTLED FOR A 30000 PENALTY MR WEIDMAN SAYS THERE ARE MORE THAN 30 SIMILAR SBA CASES IN THE PIPELINE SOME BANKS EAGER TO EXPAND THEIR SBAGUARANTEED LENDING MAY HAVE BEEN EASY MARKS FOR UNSCRUPULOUS BORROWERS AND LOAN PACKAGERS MECHANICS NATIONAL BANK LONG ONE OF THE NATION'S BIGGEST SBA LENDERS WAS HIT BY BOGUS LOAN PACKAGES ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATIONS LAST DECEMBER THE SBA PUT MAJOR RESTRICTIONS ON THE PARAMOUNT CALIF BANK'S LENDING AUTHORITY BECAUSE OF AN UNACCEPTABLE FAILURE RATE ON LOANS SAYS AN SBA SPOKESMAN WHO DECLINES TO BE MORE SPECIFIC THE SBA ACTION CAME MORE THAN A YEAR AFTER AN OCTOBER 1991 CONSENT ORDER BETWEEN MECHANICS AND THE COMPTROLLER OF THE CURRENCY OVER ALLEGED UNSAFE OR UNSOUND BANKING PRACTICES AMONG OTHER THINGS THE ORDER REQUIRED MECHANICS TO REVISE ITS PROGRAM ON SBA LOANS AND ENSURE THAT THE LOAN PROGRAM COMPLIED WITH SOUND UNDERWRITING STANDARDS THE SPOKESMAN SAYS HIS AGENCY DIDN'T LEARN OF THE COMPTROLLER'S ACTION UNTIL ABOUT A YEAR AFTER IT WAS TAKEN A SPOKESMAN FOR THE COMPTROLLER'S OFFICE DECLINES TO DISCUSS THE ORDER OR WHAT SPECIFIC ACTIONS BY MECHANICS PROMPTED IT JAMES KLINGENSMITH MECHANICS' PRESIDENT DECLINES TO COMMENT THE FOCUS ON LOAN PACKAGERS WHO HAVE LONG BEEN A FIXTURE IN THE CALIFORNIA MARKET COMES AT A TIME WHEN BANKS ELSEWHERE ARE LOOKING AT USING SUCH CONSULTANTS BUT THE CALIFORNIA EXPERIENCE SHOWS THE RISKS OF USING PACKAGERS SBA OFFICIALS SAY THE LOAN PORTFOLIOS FROM SOME SUSPECT PACKAGERS HAVE BEEN EXPERIENCING FAILURE RATES OF OVER 50 ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATIONS COMPARED WITH A NATIONWIDE FAILURE RATE FOR THE LOAN PROGRAM OF LESS THAN 10 PACKAGERS DO SERVE A USEFUL PURPOSE SAYS MR LEE OF THE SBA'S LOS ANGELES OFFICE BUT THERE IS ROOM FOR ABUSE 9309200158 930920 ECONOMY EXPORT CONTROLS ON COMPUTERS TO BE RELAXED DECISION BY CLINTON IS PART OF AN EFFORT TO REVAMP COLD WARERA CONTROLS BY ANDY PASZTOR AND JOHN J FIALKA STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON HAS DECIDED TO SUBSTANTIALLY LOOSEN EXPORT RESTRICTIONS COVERING AS MUCH AS 20 BILLION OF ANTICIPATED COMPUTER SALES AS PART OF A BROAD REVIEW OF COLD WARERA EXPORT CONTROLS MR CLINTON'S ACTION ACCORDING TO ADMINISTRATION AND INDUSTRY OFFICIALS WILL AFFECT THE NEWEST GENERATION DESKTOP MODELS AND MAINFRAME COMPUTERS NOW CLASSIFIED AS SUPERCOMPUTERS BY THE GOVERNMENT THE DECISION IS ONE ELEMENT OF A SECRET GOVERNMENTWIDE REAPPRAISAL OF US EFFORTS TO CONTROL THE SPREAD OF NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS AND THE MISSILES THAT CARRY THEM THE MOVE HAS BEEN TELEGRAPHED TO ALLIES BUT FACES GROWING OPPOSITION IN CONGRESS THE POLICY TAKING SHAPE IS DESIGNED TO HELP US FIRMS SELL CERTAIN HIGHTECHNOLOGY ITEMS ABROAD WHILE OFFERING COUNTRIES MORE EFFECTIVE INCENTIVES TO HALT THE SPREAD OF WEAPONS OF MASS DESTRUCTION THE OVERALL APPROACH ACCORDING TO ONE DRAFT SUMMARY IS TO BALANCE OUR NONPROLIFERATION REQUIREMENTS AND OUR COMMERCIAL NEEDS IN WAYS THAT ARE ESSENTIAL TO CURBING PROLIFERATION ADMINISTRATION AND INDUSTRY OFFICIALS SAID THE DECISION ON COMPUTERS AVIDLY SOUGHT BY THE COMPUTER INDUSTRY AND LIKELY TO BE ANNOUNCED IN THE NEXT FEW WEEKS WILL IMMEDIATELY AFFECT ONLY COMPUTER SALES TO WESTERN EUROPE AND OTHER US ALLIES BUT THE STEP IS LIKELY TO PAVE THE WAY FOR FURTHER EASING OF EXPORT CONTROLS ON COMPUTERS TELECOMMUNICATIONS EQUIPMENT SATELLITE TECHNOLOGY AND OTHER ITEMS DESTINED FOR FORMER STATES OF THE SOVIET UNION EASTERN EUROPE AND THIRD WORLD MARKETS BY MAKING SUCH TECHNOLOGY MORE READILY AVAILABLE FOR PEACEFUL PURPOSES THE INITIATIVE IS INTENDED TO ENCOURAGE THOSE GOVERNMENTS TO CEASE WORK ON NUCLEAR ARMS OR OTHER WEAPONS OF MASS DESTRUCTION THE PROPOSED POLICY CHANGES WHICH HAVE BEEN APPROVED BY AGENCY HEADS AND EXPLAINED TO FOREIGN GOVERNMENTS INCLUDE OPENING US STOCKPILES OF EXCESS PLUTONIUM AND HIGHLY ENRICHED URANIUM WHICH HAVE BEEN REMOVED FROM NUCLEAR WARHEADS TO INSPECTION BY THE INTERNATIONAL ATOMIC ENERGY AGENCY THE MOVE IS AIMED AT ENCOURAGING OTHER NATIONS PARTICULARLY RUSSIA TO ADOPT SIMILAR MOVES THAT WOULD TEND TO DISCOURAGE THE RECYCLING OF SUCH MATERIALS BACK INTO WEAPONS PERMITTING A LARGER NUMBER OF DEVELOPING NATIONS THAT HAVE AGREED TO FORGO WEAPONS OF MASS DESTRUCTION TO HAVE ACCESS TO SOME SPACELAUNCH TECHNOLOGY FOR PEACEFUL PURPOSES RELAXING TRADE RESTRICTIONS ON SOME COMPUTERS FIBEROPTIC TECHNOLOGY AND OTHER DUAL USE ITEMS THAT ARE AVAILABLE ELSEWHERE IN THE WORLD AND REFOCUSING REMAINING RESTRICTIONS ON US TECHNOLOGIES THAT ARE STILL UNIQUE DUAL USE ITEMS ARE THOSE THAT HAVE CIVILIAN AND MILITARY APPLICATIONS MR CLINTON ACCORDING TO GOVERNMENT AND INDUSTRY OFFICIALS IN THE PAST FEW DAYS INSTRUCTED WHITE HOUSE AIDES TO EXEMPT FROM EXPORT LICENSING REQUIREMENTS MANY OF THE FASTER MORE POWERFUL DESKTOP COMPUTERS AND WORKSTATIONS THE INDUSTRY PLANS TO BEGIN SHIPPING EARLY NEXT MONTH INTERNATIONAL BUSINESS MACHINES CORP AND OTHER US COMPUTER MAKERS HAVE QUIETLY STEPPED UP PRESSURE ON THE WHITE HOUSE AND VARIOUS CABINET AGENCIES TO TAKE SUCH A STEP ARGUING THAT DELAYS IN OBTAINING EXPORT LICENSES ARE LIKELY TO COST BILLIONS OF DOLLARS IN LOST SALES BECAUSE FOREIGN COMPETITORS WILL SOON OFFER COMPARABLE TECHNOLOGY WORLDWIDE THE INDUSTRY ALSO CLAIMS THAT IF EXISTING EXPORT RESTRICTIONS ON COMPUTERS REMAIN IN PLACE THE COMMERCE DEPARTMENT SIMPLY WON'T BE ABLE TO HANDLE THE ANTICIPATED FLOOD OF EXPORT LICENSE REQUESTS PERHAPS 20 TO 25 TIMES ABOVE CURRENT LEVELS COMPUTER FIRMS HAVE URGED THE WHITE HOUSE TO LIFT LICENSING RESTRICTIONS IMMEDIATELY ON SALES OF COMPUTERS ABLE TO PERFORM AS MANY AS 110 MILLION OPERATIONS A SECOND A MEASUREMENT KNOWN AS MTOPS WHILE MR CLINTON HASN'T FINALLY AGREED TO THAT HIS ADMINISTRATION IS LEANING TOWARD GIVING THE INDUSTRY ESSENTIALLY WHAT IT WANTS WHITE HOUSE AIDES HAVE PROMISED THAT WE WILL BE VERY PLEASED BY THE RESPONSE ONE INDUSTRY OFFICIAL SAID FRIDAY AARON CROSS PUBLIC POLICY DIRECTOR FOR IBM'S FEDERAL PROGRAMS IN WASHINGTON SAID IT IS EXTREMELY IMPORTANT THAT THE ADMINISTRATION STEP UP TO THE PLATE NOW AND HIT A HOME RUN IN ADDITION COMPUTER COMPANIES WANT SUPERCOMPUTERS TO BE DEFINED AS MACHINES THAT OPERATE AT 2000 MTOPS ABOUT 10 TIMES FASTER THAN TODAY'S GOVERNMENT STANDARD CABINET OFFICIALS ALREADY ARE PREPARED TO GO TO AT LEAST 500 MTOPS BUT MR CLINTON INSTRUCTED HIS AIDES TO SEE HOW CLOSE TO THE INDUSTRY'S PREFERRED LEVEL THE BENCHMARK SHOULD BE SET AN ANNOUNCEMENT MAY COINCIDE WITH A FOREIGN TRADE STUDY EXPECTED TO BE RELEASED AT THE END OF THE MONTH BY THE COMMERCE DEPARTMENT THE DRIVE TO ROLL BACK RESTRICTIONS IS BEING CHAMPIONED IN PART BY TOP PENTAGON OFFICIALS WHOSE PREDECESSORS ONLY A FEW YEARS AGO FOUGHT VEHEMENTLY TO RETAIN STRINGENT EXPORT CONTROLS DESPITE THE COLLAPSE OF THE SOVIET UNION WE'RE SEEING A MORE USERFRIENDLY DEFENSE DEPARTMENT SAID GREG GARCIA A TOP TRADE OFFICIAL FOR THE AMERICAN ELECTRONICS ASSOCIATION THE STATE AND COMMERCE DEPARTMENTS ALSO APPEAR TO HAVE EMERGED AS WINNERS IN THE BITTER BUREAUCRATIC TURF WARS OVERCOMING TRADITIONAL OPPOSITION FROM LOWERLEVEL MILITARY AND INTELLIGENCE OFFICIALS THE ADMINISTRATION'S GAME PLAN CALLS FOR GETTING THE NEW COMPUTER LIMITS ADOPTED BY THE COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS A GROUP OF 17 COUNTRIES SET UP TO VOLUNTARILY RESTRICT SALES TO COMMUNIST COUNTRIES OF PRODUCTS WITH POTENTIAL MILITARY USES BUT THAT PROMISES TO BE A VERY TRICKY PROCESS THE WHITE HOUSE IS PREPARING FOR A PIVOTAL INTERNATIONAL MEETING IN THE NEXT FEW WEEKS TO DECIDE COCOM'S FUTURE DIRECTION AND ORGANIZATION IN THE AREA OF TELECOMMUNICATIONS FOR EXAMPLE CLINTON ADMINISTRATION AIDES ARE MULLING LOOSER RESTRICTIONS ON FIBEROPTIC TECHNOLOGY FOR DIFFERENT REGIONS AMERICAN TELEPHONE & TELEGRAPH CO WHICH HOPES TO MAKE CHINA A MAJOR MARKET HAS BEEN AMONG THE COMPANIES MOST PUBLICLY DEMANDING LOOSER EXPORT RULES CHAIRMAN ROBERT E ALLEN RECENTLY SAID THAT TENS OF BILLIONS OF DOLLARS' WORTH OF CONTRACTS ARE AT STAKE AND AMERICAN COMPANIES OUGHT TO HAVE A SHARE OF THAT BUT SOME US OFFICIALS FEAR THAT UNILATERAL ACTION BY THE US ON TOO MANY FRONTS COULD PROD GERMANY JAPAN AND OTHER ALLIES TO RESIST PROPOSALS TO RESTRUCTURE COCOM ALTHOUGH THE STEPS CONTEMPLATED BY MR CLINTON DON'T LEGALLY REQUIRE CONGRESSIONAL APPROVAL THE PRESIDENT USUALLY SEEKS A CONSENSUS WITH LEADERS IN CONGRESS WHO SPECIALIZE IN THESE ISSUES SOME MEMBERS ARE COMPLAINING THAT THE WHITE HOUSE HAS DEPARTED FROM PAST PRACTICE AND THAT THEY FIRST LEARNED DETAILS OF THE PROPOSALS FROM FOREIGN GOVERNMENTS THE OPPOSITION ON CAPITOL HILL IS AIMING AT THE CHANGES IN SPACELAUNCH VEHICLE TECHNOLOGY AND THE STOCKPILING OF NUCLEAR MATERIALS BECAUSE THEY WOULD PROVIDE NATIONS WITH THE OPPORTUNITY FOR A RAPID TRANSITION TO NUCLEAR WEAPONS AND MISSILES WHILE IT CAN SERVE AS NUCLEAR POWERPLANT FUEL PLUTONIUM IS THE PRIMARY EXPLOSIVE USED IN NUCLEAR WEAPONS THE TECHNOLOGY IN SPACELAUNCH VEHICLES IS VIRTUALLY INDISTINGUISHABLE FROM THAT FOR LONGRANGE HIGHLY ACCURATE BALLISTIC MISSILES THE OPPOSITION'S STRENGTH BECAME EVIDENT THIS MONTH WHEN THE SENATE PASSED A RESOLUTION CALLING FOR STRICT INTERPRETATION OF LAWS RESTRICTING SPACE TECHNOLOGY AND OTHER ITEMS THE RESOLUTION PUSHED BY SENIOR DEMOCRATS INCLUDING SENS SAM NUNN JEFF BINGAMAN JOHN GLENN AND CLAIBORNE PELL NOTES SUCH LIMITS HAVE BEEN USED TO PROVIDE TIMELY WARNING BY REQUIRING ROGUE NATIONS TO LAUNCH LENGTHY AND COSTLY DEVELOPMENT PROGRAMS TO OBTAIN HIGHTECHNOLOGY ITEMS LATE LAST WEEK ACCORDING TO SEVERAL OFFICIALS INVOLVED THE WHITE HOUSE WAS CONSIDERING SENDING VICE PRESIDENT AL GORE TO THE HILL TO FEND OFF CRITICS HENRY SOKOLSKI A FORMER PENTAGON OFFICIAL SAID THE CLINTON ADMINISTRATION'S APPROACH IS RISKY BECAUSE IT SHOWS A KIND OF FLIP OPTIMISM ABOUT OUR ABILITY TO TRUST OTHER COUNTRIES AND KNOW IN ADVANCE WHO WILL PRESENT HEADACHES AND WHO WON'T 9309200157 930920 ANHEUSER MAY BUY CZECH BREWER STAKE BUDVAR DEAL COULD BE PRELUDE TO GLOBAL BRAND BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL PRAGUE WHAT IS A BRAND WORTH THESE DAYS MANY PEOPLE HAVE BEEN WONDERING THAT SINCE PHILIP MORRIS COS BEGAN DISCOUNTING ITS PREMIER BRAND MARLBORO CIGARETTES ONE OF THE MOST INTERESTING CASES OF BRAND VALUATION WILL UNFOLD HERE THIS FALL AS THE CZECH GOVERNMENT PRIVATIZES ITS TREASURED BUDVAR BREWERY STEPHEN J BURROWS EXECUTIVE VICE PRESIDENT OF ANHEUSERBUSCH COS' ANHEUSERBUSCH INTERNATIONAL WAS IN TOWN BUILDING GOODWILL FOR HIS COMPANY AND ITS BUDWEISER BRAND WHICH IS AT ODDS WITH BUDVAR AND ITS BUDWEISER BRAND BEFORE DASHING OFF TO GRADUATION CEREMONIES FOR THE US BUSINESS SCHOOL IN PRAGUE THAT ANHEUSERBUSCH HELPED FUND HE TALKED BUD EAST AND BUD WEST ANHEUSERBUSCH WILL BE IN THE RUNNING FOR THE 20 TO 30 BUDVAR STAKE THAT THE CZECHS ARE EXPECTED TO SELL TO A FOREIGN COMPANY BECAUSE OF BRAND VALUES THE ST LOUIS BEHEMOTH IS MOST LIKELY TO BE THE HIGH BIDDER AND BARRING UNFORESEEN POLITICAL DEVELOPMENTS WIN THE STAKE OVER TIME A VERY LONG TIME EMPHASIZES MR BURROWS ANHEUSERBUSCH WOULD LIKE TO GET A CONTROLLING INTEREST IN LITTLE BUDVAR THAT REQUIRES A LOT OF CONSIDERATIONS NOT THE LEAST OF WHICH IS THE COMFORT OF THE BUDVAR MANAGEMENT SAYS MR BURROWS ANHEUSER PRODUCES ABOUT 86 MILLION BARRELS OF BEER A YEAR MAKING IT THE WORLD'S BIGGEST BREWER BUDVAR BY CONTRAST PRODUCES ABOUT 500000 BARRELS A YEAR BUT IN CZECH REPUBLIC PRIDE ABOUT BEER RUNS HIGH THE CZECHS INVENTED PILSNER BEER THE SORT OF LIGHT LAGER THAT MOST AMERICANS THINK OF WHEN THEY THINK OF BEER BUDWEISER BUDVAR IS ONE OF THE FEW CZECH BEERS KNOWN INTERNATIONALLY THE US BUDWEISER BRAND IS VALUED AT ABOUT 10 BILLION ACCORDING TO A RECENT FINANCIAL WORLD ARTICLE ANHEUSERBUSCH'S BUDWEISER IS EASILY THE BESTSELLING US BRAND WITH ABOUT 25 OF THE MARKET PULLING IN 62 BILLION IN GROSS SALES ANNUALLY BUT UNLIKE MARLBORO BUDWEISER ISN'T A GLOBAL BRAND INTERNATIONAL RECOGNITION IS ONE OF MANY FACTORS USED TO VALUE BRANDS A PRACTICE THAT IS MOST ADVANCED IN THE UK ONE OF THE FEW PLACES WHERE ACCOUNTING STANDARDS ALLOW BRAND VALUES TO BE SHOWN ON THE BALANCE SHEET ANHEUSERBUSCH CAN'T SELL ITS BUDWEISER AS BUDWEISER IN MUCH OF EUROPE BECAUSE OF TRADEMARK DISPUTES IN 21 COUNTRIES LITTLE BUDVAR FROM THE TOWN OF CESKE BUDEJOVICE HOLDS THAT RIGHT IN GERMANY AND AUSTRIA TWO BIG BEER MARKETS IT CAN'T SELL ITS BEER AT ALL IN ITALY BELGIUM FRANCE THE NETHERLANDS RUSSIA AND SWITZERLAND AMONG OTHERS AMERICAN BUDWEISER GOES BY THE NAME OF PLAIN BUD BUT ANHEUSERBUSCH CAN USE THE BUDWEISER NAME IN THE UK WHERE BUDWEISER BUDVAR IS ALSO SOLD ANHEUSERBUSCH ALSO SELLS BUDWEISER IN CYPRUS IRELAND DENMARK FINLAND ICELAND MALTA AND SWEDEN AS WELL AS MUCH OF ASIA WHERE BUDWEISER BUDVAR SEEKING ONLY DRINKERS OF FULLBODIED EUROPEAN BREWS JUST ISN'T AVAILABLE CONVERSELY MR BURROWS SAYS BUDWEISER BUDVAR IS COMPLETELY SHUT OUT OF THE WESTERN HEMISPHERE WHEN IT LOOKED LIKE THE CZECHS MIGHT PUT THEIR BELOVED BREWERY UP FOR SALE TWO YEARS AGO THE TWO BREWERIES AGREED TO A TRUCE ON TRADEMARK DISPUTES NOW MR BURROWS IS TAKING A CARROTANDSTICK APPROACH IF THE CZECHS SELL HIS COMPANY A BUDVAR STAKE HE SAYS ANHEUSERBUSCH WOULD BE MORE INTERESTED IN SOLVING THE TRADEMARK DISPUTES IF HOWEVER THE STAKE GOES TO SOMEONE ELSE SETTLEMENT COULD BE MORE DIFFICULT THE TRADEMARK SETTLEMENT AND INVESTMENT ARE CLOSELY LINKED HE SAYS SOME GERMAN AND UK BREWERIES ARE SAID TO BE INTERESTED IN BUDVAR BUT NO ONE WOULD BENEFIT AS MUCH AS ANHEUSERBUSCH GETTING A STAKE IN BUDVAR AND A TRADEMARK SETTLEMENT WOULD GIVE ANHEUSERBUSCH AN OPPORTUNITY TO HAVE THE FIRST GLOBAL BEER BRAND THERE'S A DIFFERENCE BETWEEN DATING SOMEONE AND BEING MARRIED SAYS MR BURROWS AS PARTNERS WE WOULD AGREE ON WHO WILL USE WHAT NAME WHERE AND IN SO DOING WILL OPEN UP THE WORLD TO EACH OTHER THIS COULD INVOLVE CHANGES NO MORE STRIKING THAN ANHEUSERBUSCH USING THE BUD NAME IN EUROPE HE SAYS STILL THE TWO BUDWEISERS PROBABLY WOULDN'T TASTE THE SAME EVERYWHERE MR BURROWS'S US COLLEAGUES AREN'T INTERESTED IN DILUTING THE BRAND VALUE OF AMERICA'S BIGGEST SELLING BREW SOME PEOPLE IN PRAGUE SUGGEST THAT BUDWEISER BUDVAR COULD BE MARKETED IN THE US AS A HIGHCLASS BRAND EXTENSION OF US BUDWEISER IN EUROPE BUDVAR ISN'T INTERESTED IN LETTING THE NAME BUDWEISER STAND FOR THE US BEER NONETHELESS MR BURROWS AGREES THAT WITHOUT A TRADEMARK RESOLUTION THE LITTLE CZECH BREWERY IS WORTH A LOT LESS THAN WITH ONE AND THAT PUTS THE CZECHS IN THE DIFFICULT POSITION OF TRYING TO GET ANHEUSERBUSCH TO BID AGAINST ITSELF IN THE PAST THEY HAVE CREATED A POLITICAL BROUHAHA ENTERTAINING FOR INSTANCE PROPOSALS FROM A CZECH HOCKEY PLAYER TO TAKE OVER BUDVAR INDEED THE PRIVATIZATION MINISTRY RECENTLY REVERSED ITSELF IN PUBLIC STATEMENTS ABOUT HOW QUICKLY BUDVAR SHOULD BE PRIVATIZED BUT JAN STEHLIK A VICE MINISTER AT THE MINISTRY OF AGRICULTURE SAYS THE TWO MINISTRIES HAVE AGREED THAT BUDVAR WON'T BE PRIVATIZED THROUGH THE CZECH VOUCHER SCHEME AS OTHER COMPANIES HAVE BEEN IN ADDITION HE SAYS THE TRADEMARK DISPUTE WILL HAVE TO BE RESOLVED WITH ANHEUSERBUSCH BEFORE PRIVATIZATION PROCEEDS BUDVAR WON'T GET PRIVATIZED PRIOR TO RESOLVING THE TRADEMARK ISSUE MR STEHLIK SAID MR BURROWS SAYS HE UNDERSTANDS THAT A COMMITTEE OF MINISTERS IS IN THE PROCESS OF DECIDING HOW MUCH OF BUDVAR WILL BE AVAILABLE FOR FOREIGN INVESTMENT AND HOW MUCH SOLD TO CZECHS MEANWHILE BUDVAR MANAGEMENT HAS BEEN EXPRESSING AMBIVALENCE ABOUT SELLING A STAKE TO ANY FOREIGNER BANKERS HERE SUGGEST THAT THE WAY TO PRAGUE'S HEART IS THROUGH DOLLARS AND PRESTIGE A 1 BILLION VALUE FOR ALL OF BUDVAR WOULD CATCH THE GOVERNMENT'S ATTENTION SAYS ONE BASED ON PRODUCTION VOLUME THIS IS ABOUT 10 TIMES THE VALUE THAT ANHEUSERBUSCH HAS PLACED ON ITS PURCHASES OF EQUITY IN BREWERIES IN CHINA WHERE THE MARKET IS GROWING 20 ANNUALLY AND IN MEXICO ADDITIONALLY SAYS A PERSON CLOSE TO THE SITUATION ANHEUSERBUSCH OUGHT TO MAKE CZECH REPUBLIC THE CENTER OF ITS EUROPEAN BEER OPERATIONS WE ARE CERTAINLY AND I UNDERLINE CERTAINLY NOT DESPERATE SAYS MR BURROWS WE AREN'T GOING TO THE TENDER OFFER WITHOUT GOOD BUSINESS JUDGMENT WE HAVE SHAREHOLDERS TO REPORT TO 9309200156 930920 SONESTA'S NEW ORLEANS HOTEL BOSTON SONESTA INTERNATIONAL HOTELS CORP SAID IT COMPLETED AGREEMENTS TO OPERATE A NEW 243ROOM HOTEL IN NEW ORLEANS'S FRENCH QUARTER THE HOTEL IN THE DH HOLMES DEPARTMENT STORE BUILDING WILL BE CALLED CHATEAU SONESTA HOTEL AND IS EXPECTED TO OPEN IN EARLY 1995 SONESTA SAID IT WILL GUARANTEE DEBT SERVICE PAYMENTS ON THE 126 MILLION FINANCING PROVIDED BY FIRST NATIONAL BANK & COMMERCE IN NEW ORLEANS 9309200155 930920 IRAN'S UNEMPLOYMENT AT 114 MANAMA BAHRAIN IRAN'S UNEMPLOYMENT RATE IS A BETTERTHANPROJECTED 114 MINISTER OF LABOUR & SOCIAL AFFAIRS HUSSEIN KAMALI SAID SATURDAY THE ISLAMIC REPUBLIC NEWS AGENCY REPORTED IN A DISPATCH MONITORED IN BAHRAIN THE NEWS AGENCY SAID THE IRANIAN GOVERNMENT HAD AIMED TO GET UNEMPLOYMENT LEVELS DOWN TO 134 FROM 154 AS PART OF THE COUNTRY'S FIVEYEAR ECONOMIC PLAN WHICH ENDS IN 1994 IRAN'S POPULATION IS CURRENTLY 60 MILLION 9309200154 930920 PEPPERAND SALT REPORT IS BALDERDASH ARE JAMMED WITH UNMATCHED SOCKS 9309200153 930920 WHO'S NEWS IMMUNEX CORP IMMUNEX CORP SEATTLE STEVEN GILLIS 40 WAS NAMED ACTING CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS PHARMACEUTICAL COMPANY MR GILLIS IMMUNEX'S PRESIDENT AND A DIRECTOR SUCCEEDS STEPHEN A DUZAN 51 WHO HAS ANNOUNCED PLANS TO RESIGN DAVID L URDAL 43 PRESIDENT OF IMMUNEX'S MANUFACTURING SUBSIDIARY WAS APPOINTED TO FILL TEMPORARILY THE BOARD SEAT VACATED BY MR DUZAN 9309200152 930920 WHO'S NEWS CONCURRENT COMPUTER CORP CONCURRENT COMPUTER CORP OCEANPORT NJ THIS SUPPLIER OF COMPUTER SYSTEMS NAMED C MICHAEL CARTER 50 TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT SUCCEEDING HIM AS VICE PRESIDENT AND GENERAL COUNSEL IS KEVIN J DELL 37 WHO HAS BEEN ASSOCIATE GENERAL COUNSEL DAVID S COWIE 46 WAS NAMED VICE PRESIDENT OF DEVELOPMENT AND ENGINEERING PREVIOUSLY DIRECTOR OF SYSTEMS DEVELOPMENT MR COWIE SUCCEEDS GEORGE H SAMPSON WHO LEFT THE COMPANY 9309200151 930920 WHO'S NEWS PEOPLES TELEPHONE CO PEOPLES TELEPHONE CO MIAMI JAMES W SMITH RESIGNED AS PRESIDENT TO ASSUME THE POSITION OF PRESIDENT OF A NEW DIVISION PTC INTERNATIONAL AT THIS COMMUNICATIONS CONCERN MR SMITH 43 YEARS OLD HAD BEEN COMPANY PRESIDENT SINCE 1990 PEOPLES'S CHAIRMAN AND CHIEF EXECUTIVE JEFFREY HANFT WILL OVERSEE DAILY OPERATIONS A SPOKESMAN SAID THERE AREN'T PLANS TO NAME A SUCCESSOR AND THAT MR SMITH'S MOVE WAS A MUTUAL DECISION BY MR SMITH AND THE BOARD SEPARATELY THE COMPANY NAMED RICHARD F MILITELLO TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER MR MILITELLO 43 HAD BEEN CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE MARGARITA M TOLON 33 WAS NAMED CHIEF FINANCIAL OFFICER 9309200150 930920 WHO'S NEWS ROYAL DUTCH/SHELL GROUP ROYAL DUTCH/SHELL GROUP LONDON SHELL UK LTD A UNIT WILL APPOINT CHRISTOPHER FAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE NOV 1 THE COMPANY SAID DR FAY WILL SUCCEED SIR JOHN COLLINS WHO IS LEAVING TO BECOME CHIEF EXECUTIVE OF VESTEY GROUP DR FAY HAS BEEN MANAGING DIRECTOR OF SHELL UK SINCE 1989 AND MANAGING DIRECTOR OF SHELL UK EXPLORATION & PRODUCTION WHICH OPERATES THE NORTH SEA JOINT VENTURE BETWEEN SHELL AND ESSO NO ONE HAS BEEN NAMED TO FILL DR FAY'S PREVIOUS POSITION 9309200149 930920 US RESERVE ASSETS INCREASE 109 BILLION WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 109 BILLION IN AUGUST TO 7523 BILLION THE TREASURY SAID IN JULY ASSETS ROSE 171 MILLION THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 829 MILLION IN AUGUST TO 4292 BILLION WHILE ITS GOLD RESERVES WERE UNCHANGED AT 1106 BILLION HOLDINGS OF INTERNATIONAL MONETARY FUND SPECIAL DRAWING RIGHTS ROSE 228 MILLION TO 913 BILLION AND THE US ABILITY TO DRAW FOREIGN CURRENCIES FROM THE IMF THE RESERVE POSITION INCREASED 35 MILLION TO 1212 BILLION 9309200148 930920 CPA PANEL TO RECOMMEND AN INCREASE IN DISCLOSURE ON FIRMS' ANNUAL REPORTS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BLUERIBBON ACCOUNTING GROUP IS EXPECTED TODAY TO ASSERT THAT DISCLOSURE IN CORPORATE ANNUAL REPORTS MUST BE GREATLY INCREASED TO MAKE THEM RELEVANT TO INVESTORS AND CREDITORS EDMUND JENKINS CHAIRMAN OF THE SPECIAL COMMITTEE ON FINANCIAL REPORTING OF THE 310000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IS SCHEDULED TO PRESENT THE PANEL'S INITIAL FINDINGS TO THE INSTITUTE'S RULING COUNCIL WHICH IS MEETING IN NEW ORLEANS WHILE THE WORK OF THE SPECIAL COMMITTEE HAS BEEN UNDER WRAPS FOR MORE THAN TWO YEARS BECAUSE OF ITS CONTROVERSIAL NATURE MR JENKINS DISCUSSED THE RECOMMENDATIONS IN AN INTERVIEW OVER THE WEEKEND HE SAID THE COMMITTEE INCLUDING REPRESENTATIVES OF THE SIX BIGGEST ACCOUNTING FIRMS AND OTHERS AFTER INTERVIEWS WITH DOZENS OF FINANCIALREPORT USERS WILL RECOMMEND THAT COMPANIES PROVIDE AN INCREASED BREAKDOWN OF CORPORATE FINANCIAL RESULTS BY BUSINESS SEGMENTS POSSIBLY ON A QUARTERLY BASIS IF IT CAN BE JUSTIFIED ON THE BASIS OF COST AND WOULD AVOID REVEALING COMPETITIVE DATA MORE INFORMATION ABOUT MARKET SHARE STRATEGIC ALLIANCES AND PRODUCT AND QUALITY DATA THAT POINT TO ANY RISKS AND UNCERTAINTIES OF A COMPANY'S FUTURE A REVISION OF A COMPANY'S BOTTOM LINE TO SHIFT TO CORE PROFITS THAT ARE EXPECTED TO CONTINUE IN FUTURE YEARS WITHOUT ONETIME OR RESTRUCTURING GAINS OR LOSSES POSSIBLY AS AN EARNINGS PERSHARE FIGURE AN OVERHAUL OF THE OUTSIDE AUDITOR'S STATEMENT OF CERTIFICATION IN THE ANNUAL REPORT TO ELIMINATE BOILERPLATE LANGUAGE AND INSTEAD REPORT ON HOW BRIGHT OR DIM IS THE COMPANY'S FUTURE THIS COULD REPLACE OR SUPPLEMENT THE MANAGEMENT DISCUSSION AND ANALYSIS IN CURRENT ANNUAL REPORTS THE COMMITTEE WILL RECOMMEND THAT COURT PROTECTION BE PROVIDED FOR COMPANIES THAT DISCLOSE AND MAKE FORECASTS ABOUT THEIR FUTURE RISKS AND OPPORTUNITIES FROM LITIGANTS WHO MIGHT CHARGE THEY WERE MISLED BY THE FORECASTS SUCH SAFE HARBOR PROTECTION COULD BE PROVIDED BY AUDITING RULEMAKERS FEDERAL REGULATORS OR CONGRESS MR JENKINS SAID THE COMMITTEE WILL ALSO SUGGEST THAT COMPANIES DISCLOSE WHY THEY PICKED CERTAIN LIBERAL OR CONSERVATIVE ACCOUNTING METHODS THE ADEQUACY OF A COMPANY'S INTERNAL CONTROLS MORE DATA ON WHO INVESTS IN AND CONTROLS THE COMPANY AND HOW A COMPANY MEASURES THE RISKS OF ITS BUSINESS MR JENKINS SAID THE INITIAL REPORT DOESN'T INCLUDE AS EXPECTED A RECOMMENDATION FOR GREATER REPORTING REQUIREMENTS FOR BIGGER COMPANIES WHICH CAN AFFORD THE COSTS OF SUCH DISCLOSURES AND LESS DISCLOSURE FOR SMALL BUSINESS MR JENKINS SAID THE COMMITTEE IS CONTINUING TO EXPLORE THIS ISSUE AND WILL REPORT ON IT NEXT MAY WHEN THE COMMITTEE'S FINAL REPORT IS MADE TO THE COUNCIL THE COMMITTEE'S WORK HAS ALARMED MEMBERS OF THE 14000MEMBER FINANCIAL EXECUTIVES INSTITUTE WHICH INCLUDES OFFICIALS FROM THE BIGGEST US COMPANIES FEI HAS EXPRESSED CONCERNS THAT THE COMMITTEE'S RECOMMENDED CHANGES WOULD BE TOO COSTLY AND REVEAL COMPETITIVE DATA WITHOUT WORTHWHILE BENEFITS TO USERS OF FINANCIAL REPORTS BUT FINANCIAL EXECUTIVES CONCEDE THAT THE COMMITTEE'S RECOMMENDATIONS WOULD BE TOUGH TO IGNORE BECAUSE ITS MEMBERS INCLUDE THE TOP PARTNERS ON TECHNICAL MATTERS OF THE SIX BIGGEST US ACCOUNTING FIRMS MR JENKINS SAID THE IMPETUS FOR THE COMMITTEE'S WORK COMES FROM CRITICISM ON WALL STREET AND BY CORPORATE CREDITORS THAT CURRENT FINANCIAL REPORTING WHILE DISCLOSING PAST TRANSACTIONS ISN'T RELEVANT AND REVEALING ENOUGH ABOUT COMPANIES' PROSPECTS WITH TODAY'S FASTMOVING BUSINESS TRENDS AND CRISES BUT WE HAVE ASSURED BUSINESS THAT WE ARE MAKING COSTBENEFIT JUDGMENTS AND WOULDN'T WANT INCREASED DISCLOSURE TO OVERRIDE COMPETITIVE ADVANTAGES HE ADDED IN FORMING THE COMMITTEE TWO YEARS AGO THE INSTITUTE SAID IT WAS RESPONDING TO CRITICISM OF ACCOUNTANTS BY CONGRESS AND REGULATORS FOLLOWING THE COLLAPSE OF MANY THRIFTS AND BANKS FORCING THE FEDERAL GOVERNMENT TO RESCUE THESE INSTITUTIONS AT A HUGE COST TO THE PUBLIC MANY OF THESE FINANCIAL INSTITUTIONS RECEIVED CLEAN AUDIT OPINIONS BEFORE ENCOUNTERING PROBLEMS PROPOSALS BY THE COMMITTEE TO BE MADE NEXT YEAR WOULD REQUIRE APPROVAL AND IMPLEMENTATION BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS THE INSTITUTE'S AUDITING STANDARDS BOARD THE CHIEF AUDITING RULEMAKING GROUP FOR ACCOUNTANTS THE INSTITUTE'S ACCOUNTING STANDARDS EXECUTIVE COMMITTEE WHICH ISSUES ACCOUNTING GUIDANCE AND THE SEC WHICH OVERSEES THESE RULEMAKING GROUPS 9309200147 930920 INTERNATIONAL FRANCE'S GDP HELD STEADY IN 2ND PERIOD SPECIAL TO THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT PUBLISHED GROWTH DATA THAT STRONGLY SUGGEST THE ECONOMY BEGAN TO STABILIZE IN THE SECOND QUARTER AS BOTH CONSUMPTION AND INDUSTRIAL OUTPUT POSTED RECOVERIES THE GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF THE NATION'S OUTPUT OF GOODS AND SERVICES WAS UNCHANGED IN THE QUARTER AFTER A DECLINE OF 07 IN THE FIRST PERIOD MARKET GDP WHICH EXCLUDES PUBLIC EXPENDITURES FOR SUCH FREE SERVICES AS EDUCATION AND POLICE FELL 01 AFTER A 09 DECLINE IN THE FIRST QUARTER ECONOMISTS CONSIDER TOTAL GDP MORE READILY COMPARABLE TO FIGURES PUBLISHED IN OTHER COUNTRIES THE GOVERNMENT'S NATIONAL INSTITUTE FOR STATISTICS AND ECONOMIC STUDIES OR INSEE SAID 1993 GDP WOULD BE DOWN 09 IF THE TRENDS OF THE SECOND QUARTER WERE TO CONTINUE IN 1992 GDP ROSE 14 THE SECONDQUARTER RESULT MATCHES THE AVERAGE OF ESTIMATES BY MARKET ECONOMISTS PRIOR TO ITS RELEASE A GROWTH RECOVERY HAD BEEN EXPECTED AFTER ENCOURAGING SIGNS IN MONTHLY INDUSTRIAL PRODUCTION AND HOUSEHOLD CONSUMPTION INDEXES FOR THE QUARTER INDUSTRIAL OUTPUT POSTED A RISE OF 02 ITS FIRST QUARTERLY GAIN IN A YEAR INDUSTRIAL ACTIVITY FELL 18 IN THE FIRST QUARTER 9309200146 930920 INTERNATIONAL FIRM GETS LICENSES IN THE UK FOR PHONES FOR FLIGHT PASSENGERS SPECIAL TO THE WALL STREET JOURNAL LONDON MERCURY COMMUNICATIONS PLC SAID IT RECEIVED UNITED KINGDOM LICENSES FOR ITS TERRESTRIAL FLIGHT TELEPHONE SYSTEM THE SYSTEM ENABLES AIR PASSENGERS TO MAKE TELEPHONE CALLS BE PAGED SEND AND RECEIVE FAXES AND PLAY COMPUTER GAMES THE SYSTEM WILL BE PROVIDED THROUGHOUT EUROPE BY INFLIGHT PHONE EUROPE A JOINT VENTURE BETWEEN MERCURY AND INFLIGHT PHONE INTERNATIONAL A UNIT OF THE GOEKEN GROUP MERCURY IS 80OWNED BY CABLE & WIRELESS PLC OF THE UK ITS MAJOR COMPETITOR IS BRITISH TELECOMMUNICATIONS PLC MERCURY SAID IT WAS LICENSED TO PROVIDE THE SERVICE BY THE DEPARTMENT OF TRADE AND INDUSTRY AND THE RADIOCOMMUNICATIONS AGENCY FOR 12 MONTHS AND SIX MONTHS RESPECTIVELY THAT ALLOWS MERCURY TO LINK ITS AIRCRAFT TELECOMMUNICATIONS WITH THE PUBLIC TELEPHONE NETWORK IN THE UK THE COMPANY SAID IT IS IN ADVANCED DISCUSSIONS WITH REGULATORY AUTHORITIES IN SEVERAL EUROPEAN COUNTRIES AND PLANS TO SET UP A PANEUROPEAN TERRESTRIAL FLIGHT TELEPHONE SYSTEM BY 1995 IT IS ALSO IN TALKS WITH OTHER EUROPEAN TELECOMMUNICATIONS CARRIERS THAT WILL ACT AS PARTNERS 9309200145 930920 WHO'S NEWS HP COFOUNDER DAVID PACKARD RETIRES PLATT TAKES ON ADDED ROLE OF CHAIRMAN BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE FIRST TIME SINCE HEWLETTPACKARD CO STARTED OPERATIONS 54 YEARS AGO IN A TINY CALIFORNIA GARAGE NEITHER OF THE COMPANY'S FOUNDERS WILL PLAY A FORMAL ROLE IN ITS MANAGEMENT DAVID PACKARD 81 YEARS OLD RETIRED FRIDAY AS CHAIRMAN OF THE PALO ALTO CALIF COMPUTER COMPANY HE FOUNDED IN 1939 WITH WILLIAM HEWLETT 80 HP SAID IT NAMED LEWIS PLATT PRESIDENT AND CHIEF EXECUTIVE OFFICER TO THE ADDITIONAL POST OF CHAIRMAN WHILE THE TORCHPASSING SYMBOLIZED FOR SOME THE END OF AN ERA AT HP WHICH IS OFTEN CITED AS THE COMPANY THAT GAVE BIRTH TO SILICON VALLEY IT PROBABLY WON'T HAVE ANY IMPACT ON THE COMPANY'S OPERATION WHILE MR PACKARD HAS BEEN ACTIVE AS BOARD CHAIRMAN AND PLAYED A HAND IN THE COMPANY'S TURNAROUND ALMOST THREE YEARS AGO HE AND MR HEWLETT HAVE LONG BEEN ABSENT FROM DAYTODAY OPERATIONS AT HP WHERE NEITHER OF THE FOUNDERS HAVE BEEN CEO SINCE 1978 IT'S A HUGE SYMBOLIC CHANGE SAID MR PLATT IN A PHONE INTERVIEW WHILE HIS SUCCESSION TO CHAIRMAN HAPPENED QUICKLY AND WITH LITTLE ADVANCE NOTICE MR PLATT SAID IT WON'T CHANGE THE COMPANY'S MANAGEMENT IN TERMS OF STRATEGIC DIRECTION AND OVERALL LEADERSHIP DAYTODAY THAT'S SOMETHING THE CEO HAS BEEN DOING FOR A LONG TIME HE SAID STILL THE MOVE IS A BIG VOTE OF CONFIDENCE IN MR PLATT 52 WHO ONLY LAST OCTOBER SUCCEEDED JOHN YOUNG HP'S PRESIDENT AND CEO FOR 14 YEARS YOU LOOK AROUND AND TRY TO FIND THE BEST GUY AND THAT'S EXACTLY WHAT WE DID SAID MR HEWLETT A DIRECTOR EMERITUS OF HP AT A NEWS CONFERENCE FRIDAY MR PACKARD WILL BECOME A DIRECTOR EMERITUS OF THE COMPANY MAINTAINING QUARTERS IN HEWLETTPACKARD OFFICES THAT ARE SET ASIDE FOR FORMER EXECUTIVES MR PACKARD WILL HAVE NO FORMAL CONNECTION TO THE BOARD BUT SAID HE WILL CONTINUE OFFERING ADVICE TO THE COMPANY STILL MR PACKARD'S AND MR HEWLETT'S INFLUENCE WILL CONTINUE TO BE FELT INDIRECTLY THROUGH THE FOUR DIRECTORS ON THE 16MEMBER BOARD WHO ARE FAMILY MEMBERS OF HP'S FOUNDERS EACH FOUNDER ALREADY HAD A FAMILY MEMBER ON THE BOARD AND FRIDAY TWO ADDITIONAL RELATIVES JOINED AS DIRECTORS JEANPAUL G GIMON 56 MR HEWLETT'S SONINLAW AND A NORTH AMERICAN REPRESENTATIVE OF FRANCE'S CREDIT LYONNAIS AND SUSAN P ORR 46 MR PACKARD'S DAUGHTER AND PRESIDENT OF TECHNOLOGY RESOURCE ASSISTANCE CENTER A TECHNOLOGYCONSULTING FIRM THE NEW DIRECTORS FILL SEATS LEFT BY MR PACKARD AND CONDOLEEZA RICE 38 WHO RESIGNED FRIDAY HP ALSO ANNOUNCED SEVERAL FUTURE BOARD CHANGES ROBERT P WAYMAN 48 HP'S CHIEF FINANCIAL OFFICER WILL BECOME A DIRECTOR DEC 1 SUCCEEDING WILLIAM E TERRY 60 WHO WILL RETIRE FROM HIS POSTS AS DIRECTOR AND HP EXECUTIVE VICE PRESIDENT HP ALSO SAID THAT DIRECTORS HICKS B WALDRON 70 AND TA WILSON 72 WON'T STAND FOR REELECTION AFTER FEB 22 THEIR SUCCESSORS WEREN'T ANNOUNCED 9309200144 930920 ECONOMY MOYNIHAN SAYS HEALTH PLAN'S NUMBERS BASED ON FANTASY' BUT HE SEES PASSAGE BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN CALLED THE FINANCING STRATEGY IN PRESIDENT CLINTON'S HEALTHCARE PLAN FANTASY IN AN INTERVIEW YESTERDAY ON NBCTV'S MEET THE PRESS THE NEW YORK DEMOCRAT INDICATED THAT THE NUMBERS IN THE CLINTON PROPOSAL ARE ACCURATE GIVEN THE ASSUMPTIONS FED TO THE ADMINISTRATION'S COMPUTER MODELS BUT HE SEEMED TO QUESTION WHETHER THOSE ASSUMPTIONS WERE REALISTIC IT'S FANTASY HE SAID BUT ACCURATE FANTASY AS LEADER OF THE SENATE PANEL THAT MUST APPROVE THE FINANCING MEASURES IN MR CLINTON'S HEALTH BILL MR MOYNIHAN'S SUPPORT IS CRUCIAL TO THE WHITE HOUSE AND HIS SKEPTICISM COULD BE A BIG OBSTACLE BUT DESPITE HIS RESERVATIONS MR MOYNIHAN PREDICTED THAT CONGRESS WOULD PASS LEGISLATION TO OVERHAUL THE NATION'S NEARLY 1 TRILLION HEALTH SYSTEM WE HAVE A PRESIDENT WHO WANTS IT AND A FIRST LADY WHO KNOWS HOW TO GET IT HE SAID LET'S BE CHEERFUL MR CLINTON IS SCHEDULED TO OUTLINE HIS PLAN FORMALLY WEDNESDAY NIGHT IN A SPEECH TO CONGRESS THE PROPOSAL AIMS TO GUARANTEE A BROAD PACKAGE OF HEALTH BENEFITS TO ALL AMERICANS AND TO HALVE THE RATE OF GROWTH IN MEDICAL COSTS BY THE TURN OF THE CENTURY IT WOULD REQUIRE ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF THEIR WORKERS' HEALTH COVERAGE SET CAPS ON INSURANCE PREMIUMS AND PROHIBIT INSURERS FROM CHARGING SICK PEOPLE MORE THAN HEALTHY PEOPLE OR REFUSING TO COVER INDIVIDUALS WITH PREEXISTING MEDICAL CONDITIONS WHITE HOUSE COUNSELOR DAVID GERGEN ALSO APPEARING ON MEET THE PRESS DISMISSED SEN MOYNIHAN'S CRITICISMS THE SINGLE MOST IMPORTANT THING THAT HE SAID IS THAT WE'RE ON THE VERGE OF A HISTORIC MOMENT MR GERGEN SAID WE ARE ON THE VERGE OF PASSING FOR THE FIRST TIME A UNIVERSAL HEALTHCARE BILL SEPARATELY WHITE HOUSE OFFICIALS SOUGHT TO CLARIFY REMARKS MADE LAST WEEK ABOUT GOVERNMENT SUBSIDIES THAT WOULD BE PROVIDED TO SMALL BUSINESSES THAT CAN'T AFFORD TO PAY THEIR SHARE OF THE FEDERALLY GUARANTEED BENEFITS PACKAGE IN AN INTERVIEW YESTERDAY WHITE HOUSE ADVISER IRA MAGAZINER SAID THAT HE MISSPOKE WHEN HE TOLD EDITORS AND REPORTERS AT THE WALL STREET JOURNAL THAT THE SUBSIDIES WOULD BE PHASED OUT AFTER EIGHT TO 10 YEARS THERE'S NOT A PHASEOUT HE SAID RATHER HE SAID THE ADMINISTRATION WAS LOOKING FOR SOME OTHER MECHANISM TO DISCOURAGE COMPANIES FROM SPINNING OFF PARTS OF THEIR BUSINESS INTO SMALL LOWWAGE FIRMS SO THEY WOULD QUALIFY FOR ASSISTANCE ACCORDING TO A 239PAGE DRAFT OF THE ADMINISTRATION'S HEALTH PLAN MR CLINTON WOULD RELY MOSTLY ON SAVINGS IN THE CURRENT HEALTH SYSTEM PARTICULARLY HUGE CUTS IN PROJECTED SPENDING ON MEDICARE AND MEDICAID TO PAY FOR HIS PROPOSAL THOSE RESOURCES WOULD BE REDIRECTED TO FUND A NEW LONGTERM CARE PROGRAM A NEW PRESCRIPTIONDRUG BENEFIT FOR THE ELDERLY AND THE SUBSIDIES TO HELP SMALL BUSINESSES AND LOWINCOME PEOPLE AFFORD HEALTH COVERAGE BUT CITING THE ADMINISTRATION'S FIGURES ON SAVINGS MR MOYNIHAN YESTERDAY SAID WE'RE NOT GOING TO GET 238 BILLION OUT OF MEDICARE AND MEDICAID IN THE NEXT FIVE YEARS THAT'S NOT GOING TO HAPPEN NEEDN'T HAPPEN IN ORDER TO GET A BETTER SYSTEM YESTERDAY ON CNN'S NEWSMAKER SUNDAY MR MAGAZINER STRESSED THAT THE ADMINISTRATION DOESN'T INTEND TO PROPOSE NEW TAXES OTHER THAN LEVIES ON CIGARETTES AND POSSIBLY ON SOME ALCOHOLIC BEVERAGES TO FUND THE HEALTH MEASURES STILL ADMINISTRATION OFFICIALS ARE CONSIDERING WHETHER TO ASSESS A SURCHARGE ON LARGE CORPORATIONS THAT DECLINE TO JOIN ONE OF THE REGIONAL INSURANCE BUYING POOLS THAT WOULD BE SET UP UNDER THE CLINTON PLAN THE PRESIDENT ON FRIDAY TOLD REPORTERS THAT A VERY GOOD CASE COULD BE MADE FOR A 1 PAYROLL ASSESSMENT ADMINISTRATION OFFICIALS HAVE SUGGESTED THAT SUCH A SURCHARGE COULD PAY FOR MEDICAL EDUCATION AND SUBSIDIES THE EQUIVALENT OF THE SURCHARGE WOULD BE BUILT INTO THE PREMIUMS PAID BY COMPANIES IN THE SOCALLED REGIONAL ALLIANCES OFFICIALS SAID ALSO ON FRIDAY THE NONPARTISAN CONGRESSIONAL BUDGET OFFICE RELEASED A REPORT WARNING THAT CONTROLLING THE RATE OF INCREASE IN PRIVATE HEALTH INSURANCE PREMIUMS COULD HAVE UNINTENDED CONSEQUENCES SUCH AS REDUCTIONS IN THE AVAILABILITY OR EXTENT OF INSURANCE COVERAGE BUT MR MAGAZINER NOTED THAT THE CBO STUDY WAS PREPARED BEFORE THE WHITE HOUSE DRAFT PROPOSAL WAS COMPLETED AND SAID THAT THE PREMIUMCAP SYSTEM ENVISIONED IN THE CLINTON PROPOSAL DIFFERS GREATLY FROM THE SYSTEM ANALYZED BY THE CBO IT'S JUST NOT APPLICABLE MR MAGAZINER SAID 9309200143 930920 WHO'S NEWS JLG OUSTED CHAIRMAN AGREE TO END DISPUTE STOCK SET FOR OFFERING MCCONNELLSBURG PA JLG INDUSTRIES INC AND JOHN L GROVE WHO WAS OUSTED AS CHAIRMAN IN MAY ANNOUNCED AN AMICABLE SETTLEMENT OF A CONTINUING DISPUTE THAT PITTED MR GROVE AGAINST THE COMPANY HE COFOUNDED UNDER THE AGREEMENT MR GROVE WILL DISPOSE OF HIS 165 STAKE IN THE MAKER OF HYDRAULIC MACHINERY BY SELLING 205882 SHARES TO THE COMPANY AT 17 A SHARE HE WILL DISTRIBUTE THE REMAINING SHARES THROUGH A SECONDARY PUBLIC OFFERING THE AGREEMENT ACCELERATES THE COMPANY'S EXISTING OBLIGATION TO PURCHASE STOCK FROM MR GROVE UPON HIS DEATH AS PART OF THE ACCORD MR GROVE WITHDREW HIS SLATE OF DIRECTORS PROPOSED FOR THE COMPANY'S ANNUAL SHAREHOLDERS' MEETING ON NOV 22 AND AGREED NOT TO OPPOSE MANAGEMENT'S NOMINEES AT THAT MEETING MR GROVE ALSO HAS RESIGNED AS DIRECTOR AND AGREED TO DROP ALL LAWSUITS AGAINST THE COMPANY IN RETURN JLG AGREED TO DROP A PENDING LAWSUIT AGAINST MR GROVE ADDITIONALLY MR GROVE ENTERED INTO A CONSULTING CONFIDENTIALITY NONCOMPETITION AND STANDSTILL AGREEMENT WITH JLG UNDER WHICH HE WILL RECEIVE 80000 A YEAR FOR FIVE YEARS JLG WHICH ACTED ON THE RECOMMENDATION OF A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS SAID IT AGREED TO THE SETTLEMENT LARGELY BECAUSE OF THE EXPENSE OF LITIGATION THE DIVERSION OF MANAGEMENT TIME AND ATTENTION AND THE PUBLICITY GENERATED BY THE DISPUTE MOREOVER THE COMPANY BELIEVES THE PUBLIC OFFERING WILL INCREASE THE LIQUIDITY OF THE TRADING MARKET FOR ITS SHARES 9309200142 930920 BONDHOLDERS FILE SUIT AGAINST ACCOUNTANT OF TOWERS FINANCIAL NEW YORK MORE THAN TWO DOZEN COMPANIES OWNING MORE THAN 200 MILLION IN BONDS BACKED BY SUBSIDIARIES OF TOWERS FINANCIAL CORP SUED AN AUDITING FIRM THAT EVALUATED THOSE SUBSIDIARIES THE LAWSUIT FILED IN FEDERAL COURT HERE ALLEGES THAT NEW YORK ACCOUNTING FIRM RICHARD A EISNER & CO FRAUDULENTLY MISREPRESENTED THE FINANCIAL HEALTH OF TOWERS' FIVE HEALTHCARE BILLING SUBSIDIARIES TOWERS AND THE SUBSIDIARIES FILED FOR BANKRUPTCYCOURT PROTECTION IN MARCH THE COMPANIES SAY EISNER AND TWO PARTNERS AT THE FIRM ABETTED ALLEGED FRAUD AT TOWERS BY FAILING TO INVESTIGATE THE UNITS' FINANCES THOROUGHLY AND BY IGNORING POOR ACCOUNTING PRACTICES KENNETH FISCHER AN EISNER REPRESENTATIVE SAID THE COMPANY HADN'T REVIEWED THE SUIT BUT WE'VE REVIEWED OUR WORK AND ARE VERY CONFIDENT THAT OUR AUDITS WERE CONDUCTED IN A VERY PROFESSIONAL MANNER WHICH MADE CLEAR TO ANY INFORMED READER THAT THEY MIGHT BE IN DEFAULT HE SAID ABOUT 80 MILLION OF THE BONDS WERE BOUGHT BY BANKS OWNED BY ABNAMRO HOLDING NV AMSTERDAM INCLUDING 50 MILLION BY LASALLE NATIONAL BANK CHICAGO AND 20 MILLION BY EUROPEAN AMERICAN BANK UNIONALE NY ACCORDING TO THE SUIT CONFEDERATION LIFE INSURANCE CO TORONTO BOUGHT 45 MILLION OF THE BONDS WHICH REPRESENTED ACCOUNTS RECEIVABLE FROM HOSPITALS NURSING HOMES AND OTHER HEALTHCARE PROVIDERS THE SECURITIES AND EXCHANGE COMMISSION SUED TOWERS FINANCIAL THIS YEAR FOR ALLEGEDLY FRAUDULENTLY SELLING MORE THAN 400 MILLION IN BONDS AND UNREGISTERED NOTES THE SEC ALSO ALLEGED THAT CHAIRMAN STEVEN HOFFENBERG AND OTHER OFFICERS SOLD BONDS WITHOUT HAVING ASSETS TO BACK THEM THE COMPANY HAS CONSENTED TO AN ASSET FREEZE WHILE THE CASE WHICH IS IN A PRETRIALFACT FINDING STAGE CONTINUES 9309200141 930920 EVERYTHING THE FAN OF FERDINAND MARCOS WANTS EXCEPT SHOES DEPOSED DICTATOR'S HOME BASE TOUTS MEMORABILIA DISPLAY INCLUDING PRESERVED BODY BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL BATAC PHILIPPINES CONSIDER THIS IDEA FOR A THEME PARK TAKE THE PRESERVED BODY OF A DEPOSED DICTATOR EXHIBIT IT NEXT DOOR TO A COLLECTION OF HIS SPEECHES AND GOLF HATS THEN SITE IT ALL AMID PRIME EXAMPLES OF HIS REGIME'S EXTRAVAGANCE YOU MIGHT CALL IT FERDINAND MARCOS LAND OFFICIALS HERE IN THE NORTHERN PROVINCE OF ILOCOS NORTE WHICH WAS MR MARCOS'S HOME BASE DON'T REFER TO THEIR COLLECTION OF MARCOS MEMORABILIA AS A THEME PARK OF COURSE BUT JUST AS THE PROVINCE BENEFITED RICHLY FROM GOVERNMENT LARGESSE WHILE MR MARCOS WAS ALIVE IT AIMS TO CASH IN AGAIN NOW THAT HE'S DEAD THIS WILL BE THE CATALYST FOR THIS TOWN DECLARES BATAC MAYOR JESUS NALUPTA WHO HOPES THAT THIS MONTH'S BELATED RETURN OF MR MARCOS'S BODY TO BATAC WILL LEAD TO A BONANZA OF VISITORS IN A REGION WHERE TOURISTS ARE SCARCE EVEN AFTER A YEAR OR TWO YEARS THERE WILL STILL BE PEOPLE COMING PROBABLY OUT OF CURIOSITY SAYS MR NALUPTA A HEAVYSET MAN WHO LIKES TO WANDER AROUND TOWN IN SHORTS AND A TSHIRT WITH THE COMING HERE OF PRESIDENT MARCOS I'M VERY OPTIMISTIC THAT THINGS WILL IMPROVE INDEED THE CENTERPIECE OF ANY MARCOS LAND TOUR LIKELY WOULD BE MR MARCOS BATHED IN A SOFT YELLOW GLOW AND ENVELOPED BY STRAINS OF CLASSICAL MUSIC THE BODY OF THE LATE DICTATOR WHO DIED AT THE AGE OF 72 IN 1989 LIES ENCASED IN A GLASS COFFIN IN A BLACK CHAMBER HIS APPEARANCE THAT OF A CHIPPER 60YEAROLD TOO CHIPPER ACCORDING TO SOME LOCAL NEWSPAPERS WHICH SUGGESTED THAT THE DISPLAY FEATURES A WAX REPLICA THE STRONGMAN'S FAMILY INSISTS THAT IT'S THE REAL MARCOS EMERGING FROM THE STONE AND MARBLE MAUSOLEUM VISITORS COULD HEAD NEXT DOOR TO THE FAMILYRUN MUSEUM FEATURING ABOUT 30 LIFESIZED MANNEQUINS OF THE FORMER PRESIDENT HIS LAUNDERED WHITE SOCKS AND BLUEANDBEIGE GOLF GLOVES EMBROIDERED WITH THE PRESIDENTIAL SEAL ONE CABINET HOLDS HIS WALLET AND SOME OF HIS FAVORITE HOLSTERS AND TELESCOPIC SIGHTS A COLLECTION OF NEWSPAPER CLIPPINGS TRACES MR MARCOS'S SUCCESSFUL QUEST FOR THE PRESIDENCY IN 1965 HOWEVER THERE ISN'T MUCH MENTION OF HIS DECLARATION OF MARTIAL LAW IN 1972 WHICH LET HIM HANG ON TO POWER OR OF THE REVOLT IN 1986 WHICH ULTIMATELY DROVE HIM INTO EXILE DOWNSTAIRS MR MARCOS'S SON FERDINAND JR KNOWN AS BONG BONG KEEPS AN OFFICE WHERE HE OCCASIONALLY PERFORMS SOME OF HIS DUTIES AS CONGRESSMAN FOR THE DISTRICT A JOB HIS FATHER ONCE HELD ON THE OTHER SIDE OF THE MAUSOLEUM IS THE FAMILY MANSION A TWOSTORY WOOD AND STONE BUILDING DECORATED WITH THE DARK MAHOGANY FURNITURE AND ORNATE CHANDELIERS FAVORED BY MR MARCOS'S WIDOW IMELDA THE HOUSE ISN'T OPEN TO THE PUBLIC THOUGH AND TOURISTS LOOKING FOR A GLIMPSE OF THE KIND OF EXCESS REPRESENTED BY THE THOUSANDODD SHOES MRS MARCOS MAINTAINED IN MANILA WILL BE DISAPPOINTED EXCESS IS ON A GRANDER SCALE HERE TAKE THE FORT ILOCANDIA RESORT HOTEL A MAGNIFICENT BRICK STRUCTURE SET ON A WINDSWEPT BEACH A HALFHOUR'S DRIVE FROM BATAC THE SPANISHSTYLE HOTEL BUILT BY THE GOVERNMENT IN 1983 TO HOUSE GUESTS FOR THE WEDDING OF MR MARCOS'S DAUGHTER IRENE OFFERS A COLLECTION OF RESORT AMENITIES AMID SOLITARY SURROUNDINGS IT EKES OUT A PRECARIOUS EXISTENCE BY CATERING MOSTLY TO TOUR GROUPS FROM TAIWAN THE SAME GHOSTLY EMPTINESS PERVADES THE HOTEL'S GOLF COURSE A WELLMAINTAINED EXPANSE OF GREENERY ALONGSIDE A STUNNINGLY BEAUTIFUL LAKE LESS THAN A DOZEN GOLFERS TEE OFF REGULARLY A LONE TOURIST INQUIRING ABOUT GREENS FEES SETS OFF A FLURRY OF ACTIVITY AT THE CLUBHOUSE BUILT AS A RECEPTION HALL FOR MR MARCOS'S OFFICIAL ENTERTAINMENT INCLUDING CADDY FEES AND GOLF CLUB RENTAL A ROUND OF 18 HOLES WOULD SET THE TOURIST BACK LESS THAN 50 THE GOLF COURSE WAS BUILT TO ACCOMPANY THE NEARBY MALACANANG OF THE NORTH NAMED AFTER MANILA'S MALACANANG PALACE A MANSION USED AS PRESIDENT MARCOS'S OFFICIAL RESIDENCE ON TRIPS TO THE REGION TOURS OF THE TWOSTORY BUILDING PROVIDE FEW GLIMPSES OF THE MARCOSES' PRIVATE LIVES BUT OFFER AN EXCELLENT VIEW OF THE LAKE WHERE MR MARCOS USED TO DEMONSTRATE HIS PHYSIQUE BY WATERSKIING FOR A BRIEF LOOK AT MR MARCOS'S HUMBLER ORIGINS IT'S NECESSARY TO HEAD TO HIS BIRTHPLACE OF SARRAT A PICTURESQUE TOWN 45 MINUTES AWAY WHILE MUCH OF THE TOWN'S CHARM DATES ONLY TO 1983 WHEN IT RECEIVED A FACELIFT FOR IRENE'S WEDDING THE MODEST TWOSTORY WOODEN HOUSE WHERE MR MARCOS WAS BORN STILL STANDS IT ONCE CONTAINED A COLLECTION OF MARCOS MEMORABILIA BUT NOW THE DOORS ARE LOCKED AND COBWEBS LINE THE SHUTTERED WINDOWS ALSO NO LONGER ON DISPLAY IS THE EMBALMED BODY OF MR MARCOS'S MOTHER JOSEFA EDRALIN MARCOS WHICH WAS BURIED EARLIER THIS MONTH AFTER SPENDING FIVE YEARS IN A WHITE REFRIGERATED CASKET AWAITING HER SON'S RETURN MR MARCOS HIMSELF MAY NOT BE LONG FOR ILOCOS NORTE HIS WIDOW SAYS THE STRONGMAN HAD SPECIFIED A PLACE HE WANTED TO BE BURIED SHE ISN'T SAYING WHERE BUT WE HOPE THAT TIMES WILL PERMIT THAT WE WILL FULFILL THE DYING WISH OF THE PRESIDENT THEN PERHAPS WE CAN BRING THE ASHES OR REMAINS OF THE PRESIDENT TO THAT PLACE SAYS MRS MARCOS 9309200140 930920 WASTE PROJECT SEEKS PROTECTION UNDER CHAPTER 9 CASE SHOWS RISING TENSIONS BETWEEN SITE OPERATORS AND LOCAL AUTHORITIES BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL A NEW HAMPSHIREVERMONT MUNICIPAL AUTHORITY STUCK WITH ONE OF THE NATION'S COSTLIEST TRASH INCINERATION PROJECTS OWNED BY WMX TECHNOLOGIES INC FILED FOR BANKRUPTCYLAW PROTECTION THE MOVE IS A SIGN OF THE GROWING TENSIONS BETWEEN LOCAL GOVERNMENTS AND WASTE HANDLERS FALLING DISPOSAL PRICES AT DUMPS AND INCINERATORS AND LOWERTHANEXPECTED TRASH VOLUMES AS A RESULT OF RECYCLING AND THE SLUGGISH ECONOMY HAVE IN RECENT MONTHS HIT HARD TRASH COMPANIES AND SOME COMMUNITIES THAT ENTERED INTO LONGTERM CONTRACTS WITH THEM MAJOR CONTRACT DISPUTES BETWEEN COMMUNITIES AND TRASH COMPANIES OPERATING INCINERATORS HAVE FLARED UP RECENTLY IN WESTCHESTER COUNTY NY WASHINGTON COUNTY NY AND IN NORTHEASTERN MASSACHUSETTS BILLIONS OF DOLLARS OF MUNICIPAL BONDS WERE ISSUED TO HELP FINANCE THE NATION'S 142 BIG TRASH INCINERATORS ALSO KNOWN AS WASTETOENERGY PLANTS BECAUSE THEY PRODUCE AND SELL ELECTRICITY THOSE INVESTMENTS COULD BE THREATENED BY TWO CASES THE US SUPREME COURT HAS AGREED TO HEAR ONE WHETHER THE ASH FROM INCINERATION MUST BE TREATED UNDER MORE COSTLY HAZARDOUS WASTE REGULATIONS AND TWO WHETHER COMMUNITIES CAN REQUIRE TRASH WITHIN THEIR BORDERS TO GO TO A FAVORED DISPOSAL SITE A PRACTICE CALLED FLOW CONTROL THAT PROTECTS COSTLY INCINERATORS AGAINST COMPETITION FROM CHEAPER DUMPS THE NEW HAMPSHIREVERMONT SOLID WASTE PROJECT SAID IT FILED FOR PROTECTION UNDER CHAPTER 9 OF THE FEDERAL BANKRUPTCY CODE AFTER WMX TECHNOLOGIES THREATENED AS PART OF A DISPUTE OVER MONEY TO CEASE ON FRIDAY ACCEPTING TRASH FROM THE PROJECT'S 29MEMBER COMMUNITIES THE FILING FOR NOW FORCES THE COMPANY TO CONTINUE TAKING TRASH BOTH SIDES SAID AND COULD BRING IN THE COURT TO TRY TO HELP SETTLE WHAT HAS BECOME A BITTER DISPUTE THE 200TONADAY INCINERATOR FROM THE COMMUNITIES' VIEWPOINT IS IN WHAT MUNICIPAL OFFICIALS CALL THE DEATH SPIRAL IT CHARGES THE MEMBER TOWNS 9650 A TON TO DUMP BUT THE TOWNS CAN'T DELIVER ALL THE TRASH THEY PROMISED SO WMX TECHNOLOGIES BRINGS IN OUTSIDE WASTE AT PRICES AS LOW AS 40 A TON THE HIGHERTHANMARKET PRICE TO THE LOCAL COMMUNITIES ENCOURAGES HAULERS TO SNEAK TRASH AWAY TO CHEAPER DUMPS AND INCINERATORS WHICH INCREASES THE SHORTFALL OF TRASH THE TOWNS ARE ABOUT 12 MILLION BEHIND IN PAYMENTS TO A WMX TECHNOLOGIES UNIT WHEELABRATOR TECHNOLOGIES INC AND MAKING THAT UP COULD FORCE THE DUMP FEE UP ANOTHER 20 A TON WHICH IN TURN WOULD PROBABLY SEND MORE HAULERS ELSEWHERE INCREASING THE SHORTFALL THE AUTHORITY UNDER A SOCALLED PUTORPAY CONTRACT PAYS FOR 47500 TONS A YEAR EVEN IF IT DELIVERS LESS IT IS DELIVERING ONLY ABOUT 42000 TONS A YEAR ACCORDING TO ALLEN DUSAULT DIRECTOR OF THE AUTHORITY THE AUTHORITY IN TURN CLAIMS THE WMX TECHNOLOGIES UNIT OWES IT MONEY FOR COSTS OF BUILDING AND OPERATING A DUMP THAT TAKES ASH FROM THE INCINERATOR MR DUSAULT ASSERTED WMX TECHNOLOGIES IS TRYING TO SQUEEZE MONEY FROM THE TOWNS ON A PROJECT THAT IS ALREADY HIGHLY PROFITABLE FOR THE COMPANY A WMX TECHNOLOGIES SPOKESMAN CALLED THE FILING A SHAMELESS PLOY TO AVOID PAYING THE 12 MILLION IN SERVICES THEY ALREADY RECEIVED THE HIGH TIPPING FEE IS PARTLY THE AUTHORITY'S FAULT THE COMPANY SPOKESMAN SAID BECAUSE THE ASH DUMP HAS BEEN POORLY MANAGED WESTCHESTER COUNTY NY LAST MONTH SETTLED A DISPUTE WITH WMX TECHNOLOGIES WHEN THE COMPANY AGREED TO HAVE AN OUTSIDE ENGINEERING CONSULTANT REVIEW ITS WORK ON A 50 MILLION OR MORE AIRPOLLUTIONCONTROL SYSTEM BEING ADDED TO AN INCINERATOR NEIL J DELUCA DEPUTY COUNTY EXECUTIVE SAID OFFICIALS WORRIED THEY'D BE OVERCHARGED BECAUSE A SEPARATE WMX TECHNOLOGIES UNIT RUST INTERNATIONAL INC PERFORMS WORK ON PLANTS OPERATED BY WHEELABRATOR WASHINGTON COUNTY NY MEANWHILE IS ATTEMPTING THROUGH A LAWSUIT IN FEDERAL COURT TO VOID ITS OBLIGATIONS ON AN 87 MILLION 450TONADAY INCINERATOR OPERATED BY FOSTER WHEELER CORP ORIGINAL ESTIMATES CALLED FOR WASHINGTON AND A NEIGHBOR COUNTY WARREN TO USE 78 TO 96 OF THE PLANT'S CAPACITY BUT THE COUNTIES ARE ONLY FILLING ABOUT ONE THIRD AND REFUSING TO PAY FOR ANY PORTIONS THEY DON'T USE PAYING THE ADDITIONAL 500000 A MONTH WOULD BUST WASHINGTON COUNTY'S BUDGET THE COUNTY'S LAWYER HAROLD HANSON SAID CITING THE NEW HAMPSHIREVERMONT BANKRUPTCY FILING HE SAID OUR PEOPLE HAVE BEEN THINKING ABOUT THE SAME THING THE PLANT'S LOCAL PROMOTER ROBERT R BARBER WHO STILL CONTROLS AN 18 STAKE IN IT AND FORMER WASHINGTON COUNTY SUPERVISOR WILLIAM L NIKAS GO TO TRIAL NEXT MONTH ON CRIMINAL CHARGES THAT MR BARBER BRIBED MR NIKAS TO SUPPORT THE PLANT THE TWO MEN DENY ANY WRONGDOING AND SAID THEY ARE BEING MADE SCAPEGOATS BECAUSE OF FINANCIAL PROBLEMS BEYOND THEIR CONTROL FOSTER WHEELER SAID THE LITIGATION IS PREVENTING IT FROM ATTRACTING LONGTERM DISPOSAL CONTRACTS AND NORTH OF BOSTON 13 COMMUNITIES THAT SEND TRASH TO A SAUGUS MASS INCINERATOR OWNED BY WMX TECHNOLOGIES ARE FIGHTING TERMS OF AN AIRPOLLUTIONCONTROL RETROFIT AND OTHER WORK THAT COST 145 MILLION A PRELIMINARY ARBITRATOR'S RULING DISALLOWED ABOUT 22 MILLION OF THAT BEING PASSED ON TO THE COMMUNITIES 9309200139 930920 MARKETING & MEDIA SURVEY OF CABLE FIRMS TO DETERMINE EFFECT OF NEW REGULATIONS WASHINGTON AP FEDERAL REGULATORS WILL SURVEY THE 25 LARGEST CABLE TELEVISION COMPANIES TO FIND OUT HOW RATES AND PROGRAMMING HAVE CHANGED SINCE THE NEW CABLE LAW WENT INTO EFFECT THE FEDERAL COMMUNICATIONS COMMISSION SAID FCC CHAIRMAN JAMES QUELLO SAID CABLE REGULATIONS MAY BE STRENGTHENED IF THE SURVEY SHOWS THAT THE FORMULA INTENDED TO REDUCE RATES HAS BEEN INEFFECTIVE MANY SUBSCRIBERS HAVE BEEN ANGERED THAT THEIR RATES FOR SOME SERVICES WENT UP WHEN THE LAW TOOK EFFECT SEPT 1 MEANWHILE CONGRESSIONAL HEARINGS HAVE BEGUN REGARDING THE EFFECT OF THE CABLE ACT WHICH HAD PROMISED TO REDUCE RATES BY AN AVERAGE OF 10 THE ORDER SIGNED BY MR QUELLO AND COMMISSIONERS ANDREW BARRETT AND ERVIN DUGGAN REQUIRES CABLE COMPANIES TO RETURN COMPLETED QUESTIONNAIRES TO THE FCC BY OCT 1 THE SURVEY WILL COVER ABOUT 75 OF THE NATION'S CABLE SUBSCRIBERS THE FCC SAID THE COMMISSION WANTS COMPANIES TO SUPPLY RATE CARDS AND CHANNEL LINEUPS FOR LAST APRIL 5 WHEN RATES WERE FROZEN AND SEPT 1 WHEN REGULATIONS GOVERNING RATES WENT INTO EFFECT EACH OF THE 25 COMPANIES MUST SUPPLY THE DATA FOR ITS LARGEST 10 CABLE SYSTEMS GOVERNED BY THE FCC'S BENCHMARK FORMULA AND FOR ANY SYSTEMS THAT THE OPERATOR EXPECTS TO FALL INTO A SECOND CATEGORY CREATED FOR COMPANIES THAT CONFRONT EXTRAORDINARY COSTS DELIVERING CABLE SERVICE THE CABLE OPERATORS THAT WILL BE SURVEYED ARE TELECOMMUNICATIONS INC TIME WARNER CABLE CONTINENTAL CABLEVISION INC COMCAST CORP CABLEVISION SYSTEMS CORP COX CABLE COMMUNICATIONS JONES INTERCABLE INC NEWHOUSE BROADCASTING CORP CABLEVISION INDUSTRIES INC ADELPHIA COMMUNICATIONS TIMES MIRROR CABLE TELEVISION FALCON CABLE TV VIACOM CABLE SAMMONS COMMUNICATIONS INC CENTURY COMMUNICATIONS CORP CROWN MEDIA INC COLONY COMMUNICATIONS INC TELECABLE CORP SCRIPPS HOWARD CABLE TKR CABLE KBLCOM INC LENFEST GROUP INTERMEDIA PARTNERS PRIME CABLE AND POSTNEWSWEEK CABLE INC 9309200137 930920 U S WEST TO CUT 9000 POSITIONS TAKE BIG CHARGE ENTRY TOTALING 38 BILLION REFLECTS COMPANY PLAN TO MODERNIZE NETWORK BY JOHN J KELLER AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL U S WEST INC MOVING AGGRESSIVELY TO STREAMLINE OPERATIONS ANNOUNCED A THIRDQUARTER CHARGE OF 38 BILLION AND THE LAYOFF OF 9000 EMPLOYEES AS IT TRIES TO TURN ITS TELEPHONE NETWORK INTO A MODERN VOICE DATA AND VIDEO SUPERHIGHWAY U S WEST'S PLAN INCLUDES A CHANGE IN THE METHOD BY WHICH IT ACCOUNTS FOR THE DEPRECIATION OF ITS NETWORK EQUIPMENT THE COMPANY SAID THE ACCOUNTING CHANGE WILL RESULT IN A NONCASH CHARGE OF 32 BILLION AND A LOSS FOR THE THIRD QUARTER THE DENVERBASED REGIONAL BELL COMPANY ALSO SAID IT WILL CONSOLIDATE 560 SERVICE CENTERS INTO 26 LEADING TO THE ELIMINATION OF 9000 JOBS OR 17 OF ITS 53000 WORK FORCE OVER THE NEXT THREE YEARS THE COMPANY SAID THE CUTBACKS WHICH WILL RESULT IN A 610 MILLION CHARGE FOR THE QUARTER WILL IMPROVE SERVICE BY STREAMLINING THE CUSTOMERORDER SYSTEM THE COMPANY'S MOVES REFLECT AN INCREASINGLY AGGRESSIVE STANCE BY THE BABY BELLS TO PROTECT THEIR TURF FROM RIVALS BENT ON LURING AWAY THEIR PHONE CUSTOMERS THE NEW ACCOUNTING METHOD MORE CLOSELY RESEMBLES THE PRACTICE OF NONUTILITY COMPANIES WITH WHOM THE COMPANY INCREASINGLY FINDS ITSELF IN COMPETITION THE KEYSTONE OF ITS PLAN IS ACCELERATED DEPRECIATION OF THE PHONE PLANT USED BY ITS U S WEST COMMUNICATIONS PHONE UNIT THIS POSITIONS US FOR THE FUTURE SAID U S WEST CHAIRMAN RICHARD MCCORMICK SEVERAL OTHER BABY BELLS APPLAUDED THE COMPANY'S MOVE WITH THE ADVENT OF NEW TECHNOLOGY TELEPHONE COMPANIES' ASSETS AREN'T LASTING AS LONG AS THEY WERE THOUGHT TO AND NEED TO BE REPLACED SAID JOHN EDWARDSON CHIEF FINANCIAL OFFICER OF AMERITECH CORP ACTUALLY U S WEST'S NEW ACCOUNTING METHOD IS SIMILAR TO AMERICAN TELEPHONE & TELEGRAPH CO'S DEPRECIATION PLAN ADOPTED IN 1984 AT&T CHANGED ITS ACCOUNTING FROM A REGULATED UTILITY METHOD TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES THIS MEANT THAT NETWORK EQUIPMENT PREVIOUSLY DEPRECIATED OVER A PERIOD OF UP TO 40 YEARS WOULD BE WRITTEN OFF MORE QUICKLY AND THUS REPLACED OVER A SHORTER PERIOD FOR THIS CHANGE AT&T TOOK A HIT OF 55 BILLION 10 BILLION PRETAX U S WEST SAID UNDER THE NEW SYSTEM ITS DEPRECIATION CHARGES IN 1994 WOULD ESSENTIALLY BE FLAT COMPARED WITH 1993 AND ARE EXPECTED TO INCREASE 3 TO 5 ANNUALLY IN 199596 DEPRECIATION EXPENSE ROSE 26 FROM 1991 TO 1992 A SPOKESWOMAN NOTED THAT UNDER THE OLD METHOD 35 OF U S WEST'S PLANT WAS FULLY DEPRECIATED AND THAT THIS WILL INCREASE TO 57 UNDER THE NEW PLAN U S WEST AIMS TO TURN ITS 14STATE NETWORK INTO A SOCALLED BROADBAND SUPERHIGHWAY TO CONSUMERS AND BUSINESSES THE SYSTEM WOULD OFFER REGULAR PHONE SERVICE HIGHSPEED DATA TRANSFER AND ULTIMATELY VIDEOONDEMAND IT RECENTLY TOOK A 25 BILLION 25 STAKE IN TIME WARNER ENTERTAINMENT THE GIANT CABLE AND PROGRAMMING UNIT OF TIME WARNER INC AND THE PHONE COMPANY IS BACKING ITS SERVICE PLANS WITH AN AGGRESSIVE PROGRAM TO INSTALL DIGITAL SWITCHES AND HIGHCAPACITY FIBEROPTIC COMMUNICATIONS CABLES ONE ANALYST HAILED U S WEST'S MOVE AS YET ANOTHER INDICATION THAT A BABY BELL WILL PROACTIVELY COMPETE IN THE NEW TELECOMMUNICATIONS ERA NUMEROUS COMPANIES FROM CABLE TV CONCERNS TO ALTERNATIVE CARRIERS RUNNING FIBEROPTIC LOOPS AIM TO TAKE AWAY LOCAL RESIDENTIAL AND BUSINESS CUSTOMERS FROM U S WEST AND OTHER PHONE COMPANIES IF YOU'RE AN ALTERNATIVE CARRIER IN U S WEST TERRITORY THIS MAKES U S WEST A MORE FORMIDABLE COMPETITOR SAID JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC IT TAKES U S WEST OUT OF BEING A UTILITY AND I DON'T SEE HOW OTHERS CAN AVOID FOLLOWING SUIT MR GRUBMAN ON FRIDAY UPGRADED THE COMPANY TO A BUY FROM HOLD AND RAISED HIS 1994 EARNINGS ESTIMATE BY 30 CENTS TO 335 A SHARE ALTHOUGH HE DIDN'T CHANGE HIS 1993 ESTIMATE OF 280 A SHARE AMERITECH'S MR EDWARDSON ADDED THAT ALTHOUGH U S WEST WAS THE FIRST OF THE REGIONAL PHONE COMPANIES TO ENACT A MAJOR ACCOUNTING CHANGE TO SET THE STAGE FOR ITS MODERNIZATION PLANS THE OTHER BABY BELLS WERE LIKELY TO CONSIDER SIMILAR ACTION BELL ATLANTIC WHICH SAID IT HAS CONSIDERABLY REDUCED THE DEPRECIATION EXPENSE OF SOME ASSETS WILL CONSIDER WHETHER THE DEPRECIATION LIVES OF ITS ASSETS SHOULD BE REDUCED A SPOKESMAN SAID WE DON'T CONSIDER OURSELVES A UTILITY IN RECENT MONTHS THE DEMAND FOR NEW SERVICES HAS FORCED THE REGIONAL TELEPHONE COMPANIES TO STEP UP THE PACE OF THEIR MODERNIZATION EFFORTS PARTLY TO MEET ALTERNATIVE CARRIERS LIKE MFS COMMUNICATIONS CO WHICH IS SETTING UP FIBEROPTIC COMMUNICATIONS LOOPS AROUND BIG CITIES FUTURE RIVALS WILL LIKELY INCLUDE THE BIG CABLE COMPANIES SUCH AS TIME WARNER TELECOMMUNICATIONS INC AND COMCAST CORP LIKE U S WEST THE OTHER PHONE COMPANIES ARE LAYING THE GROUNDWORK FOR AN ARRAY OF SERVICES SUCH AS VIDEO TRANSMISSION HIGHSPEED DATA TRANSMISSION AND INTERACTIVE PROGRAMMING THAT ALLOWS CONSUMERS TO FETCH INFORMATION OR PLAY GAMES WITH ONE OTHER ON THE NETWORK BELL ATLANTIC CORP SAID IT HAS SIGNIFICANTLY INCREASED ITS DEPRECIATION EXPENSES ON CERTAIN PLANT AND EQUIPMENT OVER THE PAST THREE YEARS IN AN ARTICLE MONDAY ABOUT U S WEST INC IT WAS INCORRECTLY STATED THAT BELL ATLANTIC HAD DECREASED ITS DEPRECIATION EXPENSES 9309200136 930920 WOOLWORTH WILL BUY ACCESSORY LADY UNIT FROM MELVILLE CORP NEW YORK WOOLWORTH CORP IN A MOVE THAT FURTHER EXPANDS ITS ARRAY OF SPECIALITY RETAILING FORMATS SAID IT WILL ACQUIRE THE 114STORE ACCESSORY LADY CHAIN OF BOUTIQUES FROM MELVILLE CORP THE ACQUISITION OF ACCESSORY LADY WILL BOOST TO MORE THAN 900 THE NUMBER OF WOOLWORTH STORES SELLING JEWELRY HANDBAGS AND VARIED ACCESSORIES FOR WOMEN TERMS OF THE ACQUISITION WHICH IS EXPECTED TO CLOSE IN OCTOBER WEREN'T ANNOUNCED ACCESSORY LADY STORES WILL CONTINUE TO BE OPERATED UNDER THAT NAME BY THE SPECIALTY STORE DIVISION OF THE FW WOOLWORTH CO UNIT WHICH ALSO OPERATES THE AFTERTHOUGHTS CHAIN OF COSTUME JEWELRY HANDBAGS AND ACCESSORIES BOUTIQUES EDGAR J SWAIN PRESIDENT OF FW WOOLWORTH SAID ADDING ACCESSORY LADY TO THE AFTERTHOUGHTS CHAIN WILL ENABLE THE COMPANY TO BROADEN THE SCOPE OF OUR COVERAGE OF THE WOMEN'S ACCESSORIES MARKET BASED IN MALLS ACCESSORY LADY STORES ARE AIMED LARGELY AT MORE UPSCALE CAREERORIENTED WOMEN AGES 26 THROUGH 50 AND ARE PRIMARILY IN THE EASTERN HALF OF THE US AFTERTHOUGHTS STORES ALSO FOUND IN MALLS FOCUS PRIMARILY ON YOUNGER TRENDCONSCIOUS WOMEN THE COMPANY SAID WOOLWORTH CORP WHICH HAS ABOUT 9200 STORES IN MORE THAN 40 DIFFERENT RETAIL FORMATS IN 12 COUNTRIES WORLDWIDE HAS SAID IT PLANS TO SPEND HEAVILY TO EXPAND ITS SPECIALTY STORE OPERATIONS AND TO ACQUIRE COMPATIBLE SPECIALTY RETAILING COMPANIES STANLEY GOLDSTEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MELVILLE BASED IN RYE NY SAID THAT WHILE THE COMPANY WAS PLEASED WITH THE GROWTH AND PERFORMANCE OF ACCESSORY LADY ITS CORE BUSINESS IS NO LONGER CONSISTENT WITH OUR LONGTERM STRATEGIC OBJECTIVES ONE OF THE COUNTRY'S LARGEST SPECIALTY RETAILERS MELVILLE IS RETAINING UNITS THAT INCLUDE THE CVS DRUGSTORE CHAIN DISCOUNT APPAREL MERCHANT MARSHALLS FOOTWEAR CHAIN THOM MCAN AND TOY SELLER KAYBEE TOYS 9309200135 930920 INTERNATIONAL DUTCH INDUSTRIAL SALES DECLINE AMSTERDAM INDUSTRIAL SALES IN THE NETHERLANDS SHOWED A SHARPLY ACCELERATED DECLINE IN THE SECOND QUARTER OF 1993 SLIPPING 65 ON A REAL OR PRICEADJUSTED BASIS FROM A YEAR EARLIER THE GOVERNMENT SAID DATA FROM THE HAGUEBASED CENTRAL BUREAU FOR STATISTICS INDICATE THE FOURTH CONSECUTIVE QUARTER OF DECLINING SALES ON A YEARTOYEAR BASIS IN THE FIRST QUARTER THE DECLINE OF SALES ACCELERATED TO 25 FROM 1 YEARONYEAR DECLINES POSTED IN THE THIRD AND FOURTH QUARTERS OF LAST YEAR 9309200134 930920 WHO'S NEWS UPJOHN'S PARFET VICE CHAIRMAN IS LEAVING FIRM BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL KALAMAZOO MICH UPJOHN CO SAID VICE CHAIRMAN WILLIAM U PARFET A GREATGRANDSON OF THE COMPANY'S PRINCIPAL FOUNDER RESIGNED EFFECTIVE SEPT 30 UNTIL RECENTLY THE 46YEAROLD MR PARFET HAD BEEN CONSIDERED A CONTENDER TO FILL THE VACANT CHAIRMAN'S POST HE WAS IN CHARGE OF THE COMPANY'S FINANCE ALLIED HEALTH BUSINESS AND WORLDWIDE MANUFACTURING UPJOHN AND MR PARFET EXPLAINED HIS DEPARTURE AS VOLUNTARY AND RELATED TO HIS INTERESTS IN PURSUING OTHER ACTIVITIES BUT ANALYSTS READ IT AS YET ANOTHER SIGNAL THAT THE COMPANY IS SEEKING NEW DIRECTIONS AS IT FACES SOME TOUGH CHALLENGES ONE OF THE BIGGEST IS NEW LEADERSHIP THEODORE COOPER WHO WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER DIED IN APRIL OF COMPLICATIONS FROM A BONEMARROW TUMOR IN ADDITION VICE CHAIRMAN MARK NOVITCH 61 WHO OVERSEES REGULATORY AND EXTERNAL AFFAIRS LAST MONTH ANNOUNCED PLANS TO RETIRE DEC 20 SUCCESSORS TO MESSRS NOVITCH AND PARFET ARE TO BE NAMED AT A LATER DATE A COMPANY SPOKESMAN SAID UPJOHN HADN'T ADDRESSED MANAGEMENT SUCCESSION PRIOR TO DR COOPER'S DEATH AND A SUCCESSOR STILL HASN'T BEEN NAMED IN RESPONSE TO QUESTIONS FRIDAY LEY SMITH THE ACTING CHIEF EXECUTIVE SAID WE SHOULD HAVE SOMETHING FROM THE NOMINATING COMMITTEE IN THE NEXT COUPLE MONTHS IN THE MEANTIME MR SMITH SAID IN A BRIEF TELEPHONE INTERVIEW UPJOHN IS PURSUING A STRATEGY SET BY THE MANAGEMENT TEAM LEFT BY DR COOPER THE STRATEGY HAS BEEN SET IN PLACE AND IS MOVING ALONG VERY NICELY HE SAID THERE WERE A LOT OF KEY PLAYERS INVOLVED IN THAT STRATEGY THE FACT THAT PARFET AND NOVITCH WON'T BE HERE DOESN'T CHANGE THE DIRECTION IN A STATEMENT MR PARFET WHO WILL REMAIN ON THE BOARD SAID HE IS CONFIDENT THAT THE PLANS WE HAVE IN PLACE WILL HELP US MEET THE SHORTTERM CHALLENGES WE'RE FACING AND TAKE FULL ADVANTAGE OF OUR VERY PROMISING LONGTERM OPPORTUNITIES HE ALSO SAID THAT HE IS EXPLORING ADDITIONAL PERSONAL AND BUSINESS OPPORTUNITIES HE COULDN'T BE REACHED FOR COMMENT NONETHELESS DRUG ANALYSTS SAID MR PARFET'S RESIGNATION SENDS A STRONG SIGNAL THAT THE PHARMACEUTICALS CONCERN MAY CHANGE DIRECTIONS HIS RESIGNATION GREATLY DIMINISHES THE INFLUENCE ON DAYTODAY OPERATIONS OF THE DESCENDANTS OF THE THREE FOUNDING UPJOHN BROTHERS UPJOHN IS LOOKING FOR A NEW MESSIAH SAID DAVID SAKS GRUNTAL & CO'S DRUG ANALYST THEY WANT A PERSON WHO IS NOT HANDCUFFED TO OLD POLICIES THEY NEED SOMEONE WHO IS TOUGH AND A VISIONARY WILLIAM PARFET'S FATHER RAY T PARFET JR 70 A FORMER UPJOHN CHAIRMAN REMAINS ON THE BOARD WILLIAM'S BROTHER DONALD 40 WILL CONTINUE AS UPJOHN'S EXECUTIVE VICE PRESIDENT FOR ADMINISTRATION INDUSTRY ANALYSTS ESTIMATE THAT UPJOHN FAMILY MEMBERS ALONG WITH MANAGEMENT OWN ABOUT 25 OF THE COMPANY'S SHARES UPJOHN IS FACING SOME FORMIDABLE HURDLES IT WILL LOSE PATENT PROTECTION ON THREE KEY PRODUCTS BY YEAR END ADDING TO UPJOHN'S TROUBLES IS AN ACCELERATED SLIDE IN SALES OF ITS HALCION SLEEPING PILL ITS PATENT IS SET TO EXPIRE THIS YEAR CRITICS CLAIM THAT SOME USERS EXPERIENCE A HIGH INCIDENCE OF NEGATIVE SIDE EFFECTS UPJOHN HAS TO HAVE A FUNDAMENTAL CHANGE SAID HEMANT SHAH HKS CO'S DRUG ANALYST THEY ARE TRULY LOOKING FOR SOMEONE WHO IS GOING TO REVOLUTIONIZE UPJOHN 9309200133 930920 TECHNOLOGY CENTOCOR INC INTENDS TO FORM AN ALLIANCE WITH WELLCOME PLC MALVERN PA CENTOCOR INC SAID IT SIGNED A LETTER OF INTENT TO FORM AN ALLIANCE WITH WELLCOME PLC THAT CALLS FOR THE BRITISH PHARMACEUTICAL COMPANY TO ACQUIRE A 5 STAKE IN CENTOCOR FOR MORE THAN 185 MILLION THE AGREEMENT CALLS FOR LONDONBASED WELLCOME TO HELP FINANCE CENTOCOR'S DEVELOPMENT OF MONOCLONAL ANTIBODYBASED CANCERFIGHTING DRUGS SUCH AS PANOREX WELLCOME WOULD THEN MARKET AND SELL APPROVED DRUGS IN MOST PARTS OF THE WORLD THE PARTNERSHIP WITH WELLCOME IS CENTOCOR'S SECOND MAJOR ALLIANCE ANNOUNCEMENT IN THE PAST 13 MONTHS IN AUGUST 1992 ELI LILLY & CO INDIANAPOLIS ACQUIRED ABOUT 5 OF CENTOCOR TO EARN THE RIGHTS TO MARKET CENTOCOR'S CENTOREX ANTIPLATELET DRUG CENTOREX WOULD BE USED PRIMARILY IN ANGIOPLASTY IF APPROVED BY THE US FOOD AND DRUG ADMINISTRATION CENTOCOR SAID THIS TYPE OF ARRANGEMENT IS AN EXTENSION OF SOMETHING WE SAID WE WERE GOING TO DO WE WANT TO DEVELOP THE DRUGS AND FIND PARTNERS TO MARKET THEM SAID DAVID P HOLVECK PRESIDENT AND CHIEF EXECUTIVE OFFICER AT CENTOCOR WE'VE TRIED TO DO IT ON OUR OWN BUT THE INFRASTRUCTURE COST WAS CHOKING US MR HOLVECK SAID WELLCOME WOULD ACQUIRE TWO MILLION NEWLY ISSUED CENTOCOR SHARES AT A PREMIUM TO THEIR CURRENT MARKET PRICE IN OVERTHECOUNTER TRADING FRIDAY CENTOCOR CLOSED AT 925 UP 50 CENTS OR 57 CENTOCOR HAS ABOUT 413 MILLION SHARES OUTSTANDING IN NEW YORK STOCK EXCHANGE TRADING FRIDAY WELLCOME'S AMERICAN DEPOSITARY SHARES FELL 125 CENTS TO 10625 WELLCOME WOULD HAVE THE RIGHT TO MARKET CENTOCOR'S PANOREX DRUG IF THAT DRUG PASSES VARIOUS APPROVALS CENTOCOR SAID IT BELIEVES PANOREX HAS THE POTENTIAL TO HELP CANCER PATIENTS SURVIVE LONGER AND WITH FEWER OF THE HARSH SIDE EFFECTS THAT ARE COMMON WITH CHEMOTHERAPY 9309200132 930920 EXIDE BUYS DATATRAX ASSETS RALEIGH NC EXIDE ELECTRONICS GROUP INC ACQUIRED THE ASSETS OF DATATRAX SYSTEMS CORP OF DENVER TERMS WEREN'T DISCLOSED EXIDE MANUFACTURES MARKETS AND SERVICES POWERSUPPLY PRODUCTS THAT PROTECT COMPUTERS AND OTHER EQUIPMENT FROM ELECTRICAL POWER LOSS AND DISTORTIONS IT SAID DATATRAX DEVELOPS POWER ENVIRONMENTAL AND SECURITY MONITORING SYSTEMS FOR FACILITIES AND MISSIONCRITICAL APPLICATIONS AND HAS ANNUAL REVENUE OF ABOUT 3 MILLION DATATRAX WILL BE OPERATED AS AN EXIDE UNIT 9309200131 930920 PETROLEUM DEVELOPMENT CORP BRIDGEPORT WVA PETROLEUM DEVELOPMENT CORP SAID IT FUNDED A DRILLING PARTNERSHIP WITH INVESTOR SUBSCRIPTIONS OF 3 MILLION AND BEGAN DRILLING AN ADDITIONAL 17 WELLS IN NORTHCENTRAL WEST VIRGINIA THIS BRINGS TOTAL SUBSCRIPTIONS FOR THE 1993 DRILLING PROGRAM TO 85 MILLION AND TOTAL GAS WELLS DRILLED THIS YEAR TO 45 THE OIL AND GAS COMPANY SAID IT PLANS TO FORM TWO MORE PARTNERSHIPS THIS YEAR ONE ON NOV 15 AND ONE ON DEC 31 9309200130 930920 INTERNATIONAL CONCERN TO BUILD PLANT IN CHINA MILAN SNAMPROGETTI SPA THE ENGINEERING ARM OF STATE ENERGY HOLDING COMPANY ENTE NAZIONALE IDROCARBURI SAID IT WON A CONTRACT VALUED AT MORE THAN 70 BILLION LIRE 451 MILLION TO SUPPLY A 1765METRICTONADAY UREA PLANT TO CHINA UREA WHICH IS PRODUCED SYNTHETICALLY OR FOUND IN BODY FLUIDS OF MAMMALS IS USED TO MAKE AMONG OTHER THINGS PLASTICS FERTILIZERS AND ADHESIVES THE PLANT WILL BE BUILT AT DONGFANG ON THE ISLAND OF HAINAN 9309200129 930920 FINANCING BUSINESS ETHYL CORP ETHYL CORP RICHMOND VA MAY HAVE ITS RATINGS ON SENIOR DEBT LOWERED TWO DEBTRATING AGENCIES SAID FOLLOWING THE COMPANY'S ANNOUNCEMENT OF PLANS TO SPIN OFF ITS CHEMICALS GROUP STANDARD & POOR'S CORP RATES ETHYL'S SENIOR DEBT TRIPLEBPLUS WHILE MOODY'S INVESTORS SERVICE INC RATES ITS LONGTERM DEBT SINGLEA3 S&P SAID ITS RATING COULD BE LOWERED TO TRIPLEB DUE TO REDUCED EARNINGS DIVERSITY IT RATES ABOUT 400 MILLION OF DEBT MOODY'S IS REVIEWING ABOUT 316 MILLION OF DEBT 9309200128 930920 GLOBAL VIEW KING HUSSEIN IS AGAIN THE OBJECT OF HIGH HOPES BY GEORGE MELLOAN NOW THAT THE ISRAELIPLO ACCORD HAS BEEN SIGNED IT IS TIME FOR A REALISTIC ASSESSMENT OF HOW TO ACTUALLY ACHIEVE PEACE IN PALESTINE THE ACCORD ITSELF IS ONLY A BEGINNING PROMISING MUCH BUT GUARANTEEING NOTHING ANY SUCH ASSESSMENT MUST START WITH A QUESTION WHO IN THE REGION TRULY WANTS PEACE AND WHAT CAN THEY DO TO BRING IT ABOUT IT HARDLY NEEDS SAYING THAT THE ISRAELIS WANT IT OTHERWISE THEY WOULD NOT HAVE RISKED A DEAL WITH THE SLIPPERY YASSER ARAFAT PEACE TO THEM WOULD MEAN SURCEASE FROM TERRORISM AND ARAB THREATS TO ERADICATE THE JEWISH STATE OF THE OTHERS THE KEY MAN IS KING HUSSEIN OF JORDAN THE KING AN ADMIRABLE AND NONRADICAL ARAB LEADER HAS BEEN LITERALLY DODGING BULLETS THROUGHOUT HIS 40YEAR REIGN THE LONGEST OF ANY ARAB LEADER ARAB RADICALS NEVER SEEM TO TIRE OF TRYING TO UNSEAT OR ASSASSINATE HIM THERE IS LITTLE REASON TO DOUBT HIS ASSERTIONS THAT HE WANTS A PALESTINIAN PEACE BEYOND THE ISRAELIS AND KING HUSSEIN YOU HAVE THE OTHER ARAB MONARCHS KING FAHD OF SAUDI ARABIA AND KING HASSAN II OF MOROCCO KING FAHD OF COURSE ALMOST FELL VICTIM TO THAT MOTHER OF ALL RADICALS SADDAM HUSSEIN IN 1990 TO COUNTER THE THREATS OF ANTIWESTERN ARABS SUCH AS SADDAM SYRIA'S HAFEZ ASSAD AND LIBYA'S MOAMMAR GADHAFI ARAB MONARCHS HAVE TRADITIONALLY COURTED THE US AND ITS ALLIES ASIDE FROM THE KINGS THE OTHER PROMINENT ARAB LEADER IN NEED OF WESTERN SUPPORT IS PRESIDENT HOSNI MUBARAK OF EGYPT WHO IS UNDER PRESSURE FROM ISLAMIC RADICALS INSPIRED BY IRAN AND SUDAN BUT IN TERMS OF ACTUALLY ACHIEVING PEACE IN PALESTINE IT IS KING HUSSEIN WHO HAS A SPECIAL OPPORTUNITY ALBEIT ONE FILLED WITH DIFFICULTIES AND PERILS DESPITE HIS SELFINTERESTED SUPPORT FOR SADDAM HUSSEIN IN THE GULF WAR HE IS BACK IN AMERICA'S GOOD GRACES AS ARAB LEADERS GO HE IS SOMETHING OF A DEMOCRAT HE MOSTLY RESISTS TEMPTATIONS TO DEMAGOGUE THE PALESTINE ISSUE AND HAS HAD QUIET CONTACTS WITH ISRAEL OVER THE YEARS TO SOLVE SPECIAL PROBLEMS LAST WEEK'S PLOISRAELI ACCORD REMOVED THE FINAL BARRIER TO OPEN BILATERAL TALKS BETWEEN JORDAN AND ISRAEL AND THEY BEGAN EVEN BEFORE THE ACCORD WAS SIGNED ALTHOUGH JORDAN WARNED THAT IT WILL TAKE TIME TO NEGOTIATE A PEACE TREATY IT WOULD BE LOGICAL FOR ISRAEL AND THE WESTERN INTERMEDIARIES TO TURN TO JORDAN FOR HELP IN FASHIONING THE INSTITUTIONS THAT MUST BE IN PLACE IF PALESTINIANS WEST OF THE JORDAN ARE TO HAVE STABLE SELFGOVERNMENT TO BUILD SUCH INSTITUTIONS YOU NEED PEOPLE WITH ABILITIES AND A COMMITMENT TO THAT GOAL UNFORTUNATELY MANY OF THE MOST ABLE AND MODERATE WEST BANK LEADERS WERE SHOVED ASIDE OR IN SOME CASES ASSASSINATED BY THE SAME PLO THAT NOW PROMISES PEACE THE INTENTIONS OF PLO LEADER YASSER ARAFAT REMAIN SUSPECT DESPITE HIS DISPLAY OF INNOCENT CHARM AT THE WHITE HOUSE CEREMONIES MANY OF THE PEOPLE OF THE WEST BANK AND GAZA HAVE BEEN HARDENED AND RADICALIZED BY POVERTY A DEADEND EXISTENCE IN UN CAMPS AND THE STRUGGLE AGAINST ISRAEL URGED ON THEM BY RADICAL LEADERS WHAT THE KING HAS TO OFFER IS THAT HE UNLIKE ARAFAT IS AN EXPERIENCED HEAD OF GOVERNMENT INCREASINGLY THE STATE HE HEADS HAS ITSELF BECOME A PALESTINIAN STATE SOME 300000 PALESTINIANS WERE EXPELLED FROM KUWAIT AFTER THE GULF WAR BECAUSE THE PLO HAD SIDED WITH SADDAM MOST CAME TO JORDAN SWELLING THE COUNTRY'S PALESTINIAN POPULATION TO WELL OVER HALF JORDAN'S TOTAL FORTUNATELY THERE WAS NO FRESH NEW UN REFUGEE CAMP AWAITING THESE MIGRANTS SO THEY HAVE BEEN MAKING THEIR OWN WAY IN JORDAN AND NOT DOING BADLY AT IT FOR THE MOST PART MANY ARE WELLEDUCATED AND HELD RESPONSIBLE JOBS OR RAN SUCCESSFUL BUSINESSES IN KUWAIT SOME ARE FINANCIALLY WELL OFF MOREOVER MANY PALESTINIANS SEEM VERY LOYAL TO THE LITTLE KING EVEN THOUGH HE IS A HASHEMITE A TRIBE WITH ORIGINS IN SAUDI ARABIA AND THERE HAVE BEEN PLO EFFORTS IN THE PAST TO TOPPLE HIM AND HIS HASHEMITE FOLLOWERS WHEN HE RETURNED FROM A KIDNEY REMOVAL OPERATION IN MINNESOTA SOME MONTHS BACK A HUGE CROWD TURNED OUT TO WELCOME HIM MANY OF THE PALESTINIANS FROM KUWAIT BECAUSE THEY ARE PROPERTIED AND MIDDLE CLASS HAVE A GREATER LIKING FOR STABILITY THAN FOR ARAB RADICALISM IN OTHER WORDS KING HUSSEIN HAS AT HAND JUST THE KINDS OF PEOPLE THAT THE WEST BANK AND GAZA NEED THE 17 MILLION ARABS OF THOSE TWO AREAS MUST HAVE BETTER LEADERS IF THEY ARE EVER TO ADVANCE FROM THEIR PRESENT LOW STATUS AS AGGRIEVED HOSTAGES TO MIDEAST POLITICS AND BECOME SELFRELIANT PRODUCTIVE CITIZENS BUT BECAUSE OF HIS ALREADY LARGE PALESTINIAN POPULATION THE KING HAS NOT BEEN EAGER TO REUNIFY EAST AND WESTBANK PALESTINIANS HE HAS PROPOSED A FEDERATION OF THE TWO COMMUNITIES BUT IS IN NO HURRY ABOUT THAT EITHER INDEED HE HINTED LAST WEEK THAT PARLIAMENTARY ELECTIONS SCHEDULED FOR NOV 8 MIGHT BE POSTPONED HE NO DOUBT FEARS THAT THEY MIGHT BECOME A REFERENDUM ON REUNIFICATION WITH MILITANT PALESTINIANS FORCING THE ISSUE HE CITED THE DANGER OF RISING EXPECTATIONS THAT MIGHT BE DISAPPOINTED WHEN IT IS REALIZED HOW MUCH NEEDS TO BE DONE THERE IS NO DOUBT THAT KING HUSSEIN AND HIS HASHEMITE DYNASTY COULD BE JEOPARDIZED BY EVEN A DE FACTO MELDING OF HIS PALESTINIAN POPULATION WITH THE PALESTINIANS OF THE WEST BANK AND GAZA IF THE KING SHOULD FALL IT WOULD MOST LIKELY BE TO A MORE RADICAL RATHER THAN LESS RADICAL STYLE OF LEADERSHIP THE KING'S HEALTH IS UNCERTAIN AND HIS BROTHER AND CHOSEN SUCCESSOR CROWN PRINCE HASSAN SOUNDS FROM HIS PUBLIC UTTERANCES LESS JUDICIOUS THE KING HAS ALWAYS BEEN FORCED TO TREAD CAUTIOUSLY BECAUSE OF THE CONSTANT THREAT FROM ARAB HARDLINERS IT MIGHT BE POSSIBLE FOR ISRAEL AND JORDAN TO MARGINALIZE ARAFAT NOW THAT HE HAS HAD HIS 15 MINUTES OF PUBLIC ACCLAIM BUT CERTAINLY IT WON'T BE EASY TO MARGINALIZE HAFEZ ASSAD OF SYRIA WHO IS BUSILY STOCKING HIMSELF WITH MISSILES FROM NORTH KOREA FINALLY THERE IS THE TANGLE OF INTERRELATED ISLAMIC RADICAL GROUPS SUCH AS HAMAS AND THE MUSLIM BROTHERHOOD THEY ALREADY HAVE STEPPED IN TO PICK UP SOME OF THE WEST BANKGAZA INFLUENCE THAT THE PLO HAS DROPPED AND THEY SEEM NOT VERY INTERESTED IN PEACE IT SHOULD ALWAYS BE KEPT IN MIND THAT PEACE IS NOT EVERYONE'S CUP OF TEA FIGHTING GROUPS YIELD UP A SENSE OF COMMITMENT AND EXCITEMENT TO YOUNG ARABS IN THE ISRAELIOCCUPIED TERRITORIES THAT GIVES MEANING TO LIVES THAT OTHERWISE WOULD BE DREARY THEY LIKE THE DANGER THAT IS WHAT THE REGION'S PEACEMAKERS HAVE TO COPE WITH THEY HAVE TO BUILD A NEW SOCIETY THAT IS NEVER EASY BUT THE DOOR IS OPEN A CRACK 9309200127 930920 GM ON THE BRINK OF TALKS WITH UAW IS SELLING FIVE PARTS PLANTS TO INVESTORS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP ON THE BRINK OF CONTRACT TALKS WITH THE UNITED AUTO WORKERS SAID IT HAS SOLD FIVE PARTSMAKING PLANTS EMPLOYING 6800 UAW WORKERS THE PRICE WASN'T DISCLOSED THE SALE TO AMERICAN AXLE & MANUFACTURING INC IS THE BIGGEST SO FAR FOR GM'S AUTOMOTIVE COMPONENTS GROUP WHICH HAS VOWED TO CLOSE SELL OR SEEK PARTNERS FOR 14 BUSINESSES THAT AREN'T COMPETITIVE OR REQUIRE TOO MUCH CAPITAL IN ALL THE COMPONENTS GROUP WHICH HAD REVENUE OF 236 BILLION LAST YEAR IS TRYING TO LEAVE BUSINESSES THAT PRODUCE 3 BILLION IN ANNUAL REVENUE ANALYST WENDY NEEDHAM OF SMITH BARNEY SHEARSON INC CALLED THE SALE OF THE FIVE PLANTS GOOD NEWS FOR GM THEY SAID THEY WANTED TO SELL SELECTED ASSETS AND NOW THEY'RE SELLING ASSETS SHE SAID THEY'RE GETTING UNION WORKERS OFF THE BOOKS AND THEIR PLANS ARE GOING FORWARD THE UAW AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS WILL CONTINUE TO REPRESENT THE PLANTS' WORKERS UNDER THE TERMS OF THE AGREEMENT UAW OFFICIALS ARE SUSPICIOUS OF THE TIMING OF THE SALE WHICH CAME JUST THREE DAYS AFTER GM'S THREEYEAR CONTRACT WITH THE UAW EXPIRED IF THE SALE IS COMPLETED BEFORE THE UNION AND GM SIGN ANOTHER CONTRACT PROBABLY IN OCTOBER OR NOVEMBER THE NEW COMPANY WOULD HAVE THE RIGHT TO NEGOTIATE ITS OWN LABOR DEAL PRESUMABLY WITH LOWER WAGES AND BENEFITS IF HOWEVER THE SALE IS COMPLETED AFTER THE NEW CONTRACT IS SIGNED THE WORKERS WILL BE ENTITLED TO GMSTYLE WAGES AND BENEFITS FOR THREE MORE YEARS GM DOESN'T EXPECT THE SALE TO BE COMPLETED UNTIL DEC 31 WHICH WOULD ALMOST SURELY PUT THE WORKERS INTO THE NEW CONTRACT IN ANY EVENT THE UAW'S CHIEF GM NEGOTIATOR STEPHEN P YOKICH HAS ALREADY MADE IT CLEAR TO THE COMPANY THAT ANY OF THESE PLANTS WILL BE COVERED UNDER THE NEW AGREEMENT SAID A TOP UNION OFFICIAL THE SALE INCLUDES TWO PLANTS IN UPSTATE NEW YORK AND THREE IN MICHIGAN THE PLANTS MOSTLY MAKE PARTS FOR GM TRUCKS INCLUDING DRIVE SHAFTS AND AXLES AFTER THE SALE GM PLANS TO CONTINUE PURCHASING THE SAME PARTS FROM THE NEW OWNERS AMERICAN AXLE & MANUFACTURING A GROUP OF INVESTORS FORMED TO BUY THIS SPECIFIC GM BUSINESS IS HEADED BY RICHARD E DAUCH WHO FORMERLY RAN CHRYSLER CORP'S MANUFACTURING OPERATIONS WITH THE HELP OF OUR NEW EMPLOYEES WHOM WE REFER TO AS OUR ASSOCIATES WE INTEND TO GROW THE BUSINESS SAID MR DAUCH WE HAVE PLANNED AN AGGRESSIVE PROGRAM OF INVESTMENT IN OUR ASSOCIATES EQUIPMENT AND FACILITIES LAST WEEK GM AGREED TO SELL ITS ALLISON GAS TURBINE DIVISION TO A NEW COMPANY FORMED BY THE CLOSELY HELD INVESTMENT FIRM CLAYTON DUBILIER & RICE INC AND A GROUP OF ALLISON EXECUTIVES NO SALE PRICE WAS DISCLOSED BUT PEOPLE CLOSE TO THE DEAL PUT THE PRICE AT ABOUT 300 MILLION GM SHARES CLOSED FRIDAY AT 4575 OFF 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309200126 930920 SIMETCO INC SEEKS CHAPTER 11 PROTECTION IN BANKRUPTCY COURT CANTON OHIO SIMETCO INC SAID IT FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN THE BANKRUPTCY COURT FOR OHIO'S NORTHERN DISTRICT THE PRODUCER OF SILICON METALS SAID ITS CURRENT CASH FLOW WOULD NOT COVER LARGE DEBT PAYMENTS MOSTLY SHORTTERM IN NATURE A SPOKESMAN SAID SIMETCO'S TOTAL DEBT OUTSTANDING IS ABOUT 39 MILLION SIMETCO SAID IT INTENDS TO SECURE LONGTERM FINANCING FOR REPAIRS TO A FURNACE AT ITS ALABAMA PLANT TO BRING THE COMPANY UP TO ITS FULL THREEFURNACE CAPACITY SIMETCO ALSO SAID IT PLANS TO RESTRUCTURE ITS DEBT CURRENT MANAGEMENT WILL CONTINUE OPERATING THE COMPANY UNTIL A REORGANIZATION PLAN IS NEGOTIATED IN A STATEMENT SIMETCO SAID IT HAD BEEN HURT IN RECENT YEARS BY THE DUMPING OF SILICON METALS BY FOREIGN COMPETITORS PARTICULARLY FROM CHINA SILICON METALS ARE USED IN THE ALLOYING OF ALUMINUM AND THE PRODUCTION OF SILICONES AND SEMICONDUCTORS FOR 1992 SIMETCO POSTED A LOSS OF 16 MILLION OR 48 CENTS A SHARE ON SALES OF 321 MILLION IN THIS YEAR'S SECOND QUARTER THE COMPANY REPORTED A LOSS OF 702000 OR 19 CENTS A SHARE REFLECTING ACCOUNTING CHANGES ON SALES OF 78 MILLION 9309200125 930920 ATLAS COPCO SUBSIDIARY ENTERS CHINA VENTURE STOCKHOLM SWEDEN'S ATLAS COPCO AB A MANUFACTURER OF EQUIPMENT FOR MINING AND MINERAL HANDLING SAID ITS UNIROC UNIT AGREED WITH SHANGHAI NO 1 PETROLEUM MACHINERY WORKS OF CHINA TO ESTABLISH A JOINT VENTURE IN SHANGHAI THE NEW COMPANY WILL MANUFACTURE AND MARKET PERCUSSIVE DRILL BITS FOR UNDERGROUND AND SURFACE APPLICATIONS IN MINING AND CONSTRUCTION PROJECTS USING UNIROC'S TECHNOLOGY ATLAS COPCO SAID THE VENTURE IS EXPECTED TO EMPLOY 50 PEOPLE AND INVOLVE A TOTAL INVESTMENT OF 2 MILLION THE PRIMARY GOAL IS TO EXPAND THE CHINESE AND PROVIDE CHINESE CUSTOMERS WITH HIGHQUALITY PRODUCTS ATLAS SAID 9309200124 930920 GOODY'S FAMILY CUTS EARNINGS ESTIMATES STOCK PRICE FALLS 12 KNOXVILLE TENN GOODY'S FAMILY CLOTHING INC HURT BY SOFT SALES AND A CHANGE IN MANAGEMENT LOWERED EARNINGS ESTIMATES FOR ITS FISCAL THIRD QUARTER AND ITS YEAR NEWS OF THE REVISIONS PUSHED DOWN THE COMPANY'S STOCK TO 1275 A SHARE OFF 175 OR 12 IN OVERTHECOUNTER TRADING FRIDAY THE CLOTHING RETAILER SAID EARNINGS FOR THE QUARTER ENDING IN OCTOBER WILL RANGE FROM BREAKEVEN TO 10 CENTS A SHARE IN THE YEARAGO QUARTER GOODY'S EARNED 4 MILLION OR 37 CENTS A SHARE ON REVENUE OF 1131 MILLION FOR ITS YEAR ENDING JAN 29 THE COMPANY EXPECTS TO REPORT EARNINGS OF 90 CENTS TO 1 A SHARE IN FISCAL 1993 GOODY'S EARNED 162 MILLION OR 150 A SHARE ON REVENUE OF 4553 MILLION ANALYSTS HAVE BEEN PROJECTING EARNINGS OF ABOUT 25 CENTS A SHARE FOR THE CURRENT QUARTER AND ABOUT 115 FOR THE YEAR GOODY'S SAID SALES HAVE BEEN WEAK IN ITS MISSES AND JUNIOR DIVISIONS THE COMPANY ADDED THAT IT MISSED SEVERAL TRENDS IN WOMEN'S WEAR IN THE TRANSITION FROM SUMMER TO FALL SELLING SEASONS REFLECTING A CHANGE IN LEADERSHIP IN ITS MERCHANDISING EFFORTS THE COMPANY SAID A NEW EXECUTIVE VICE PRESIDENT OF MERCHANDISING WILL BE IN PLACE SEPT 27 9309200123 930920 GLAXO HOLDINGS WINS LAWSUIT TO PROTECT PATENT ON ULCER DRUG SPECIAL TO THE WALL STREET JOURNAL LONDON GLAXO HOLDINGS PLC WON A LAWSUIT TO PROTECT THE US PATENT ON ITS ZANTAC ULCER DRUG ONE OF THE WORLD'S MOST WIDELY PRESCRIBED MEDICINES A US DISTRICT COURT JUDGE RULED FRIDAY THAT CANADIAN COMPETITOR NOVOPHARM CANNOT MARKET GENERIC FORMS OF THE ZANTAC DRUG GLAXO SELLS IN THE US UNTIL 2002 THE BRITISH PHARMACEUTICAL COMPANY SAID GLAXO BROUGHT THE CASE AGAINST NOVOPHARM IN 1991 WHEN THE CANADIAN GENERIC DRUG COMPANY SOUGHT TO MARKET A GENERIC VERSION OF ZANTAC NOVOPHARM HAD ARGUED THAT FORM TWO ZANTAC THE FORM GLAXO SELLS WORLDWIDE WAS NO DIFFERENT FROM FORM ONE ZANTAC WHOSE US PATENTS EXPIRE IN DECEMBER 1995 GLAXO NEVER MARKETED FORM ONE ZANTAC JUDGE TERRENCE BOYLE OF THE US DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA RULED NOVOPHARM HAD FAILED TO SHOW THAT THE FORM TWO PATENT WAS INHERENTLY DISCLOSED IN THE ORIGINAL PATENT ACCORDING TO GLAXO'S STATEMENT HE ALSO RULED THAT NOVOPHARM FAILED TO PROVE THAT GLAXO WAS GUILTY OF ANY IMPROPRIETY IN FILING THE PATENT THE STATEMENT SAID IN GLAXO'S MOST RECENT FINANCIAL YEAR ZANTAC REPORTED SALES OF 217 BILLION 333 BILLION OR ROUGHLY 44 OF ITS TOTAL SALES ABOUT HALF OF ZANTAC'S SALES ARE IN THE US 9309200122 930920 AIWA US UNIT EXPECTS 40 RISE IN FISCAL 94 SALES FIRM HOPES NEW PRODUCTS AGGRESSIVE ADVERTISING WILL BOOST MARKET SHARE BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL MAHWAH NJ AIWA AMERICA INC EXPECTS A 40 INCREASE IN SALES IN FISCAL 1994 BANKING ON STRONG PRODUCTS AND MORE NAME RECOGNITION AS IT BATTLES THE SLOW ECONOMY AND THE SOARING YEN THE US MARKETING ARM OF THE TOKYO CONSUMER ELECTRONICS CONCERN AIWA CO WHICH ALSO HAD A 40 SALES GROWTH IN FISCAL 1993 ENDED MARCH 31 HOPES THAT NEW PRODUCTS AND MORE AGGRESSIVE ADVERTISING WILL IMPROVE ITS POSITION AGAINST FOREIGN COMPETITORS IN THE US MARKET SAID YUKIO YAMAMOTO AIWA AMERICA'S NEW ACTING PRESIDENT IN AN INTERVIEW MR YAMAMOTO TOOK OVER IN AUGUST AS ACTING PRESIDENT OF AIWA AMERICA AFTER AKINOBU ISHIHARA DIED IN A CAR ACCIDENT MR YAMAMOTO 45 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AT AIWA AMERICA OUR CURRENT HEADACHE IS THAT THE AMERICAN PORTION OF OUR SALES IS RATHER SMALL COMPARED WITH THOSE OF THE MORE WELLKNOWN SONY CORP A 52 OWNER OF AIWA CO AND DUTCH CONSUMER PRODUCT GIANT PHILIPS ELECTRONICS NV SAID MR YAMAMOTO OUR GOAL IS TO HAVE A REASONABLE PROPORTION AGAINST SUCH COMPANIES AIWA WOULD LIKE TO BOOST ITS SHARE OF THE US MARKET FOR FOREIGN CONSUMER ELECTRONIC GOODS TO 35 IN THE MEDIUM TERM HE DECLINED TO INDICATE THE CURRENT SHARE A BIG PART OF OUR CAMPAIGN IS TO RAISE NAME AWARENESS HE SAID THE AIWA NAME ISN'T WELL KNOWN YET THE PEOPLE WHO KNOW US ARE TRADE PEOPLE BUT HE NOTED THE COMPANY'S AUDIO AND VISUAL PRODUCTS HAVE BEEN GAINING MORE RETAIL SPACE IN THE PAST YEAR IN ADDITION AN AGGRESSIVE RADIO ADVERTISING CAMPAIGN AND MORE FREQUENT APPEARANCE OF THE COMPANY'S NAME IN RETAIL CIRCULAR PUBLICATIONS HAS HELPED SALES HE SAID AIWA IS STRONG IN SMALLER AUDIO SYSTEMS A MARKET THAT IS IMPROVING DUE TO CHANGES IN THE LIFESTYLES OF CONSUMERS WHO ARE USING SMALLER SYSTEMS IN PLACES LIKE THE KITCHEN HE SAID OTHER AIWA OFFICIALS NOTED THAT THE ELECTRONICS INDUSTRIES ASSOCIATION A WASHINGTON DC TRADE GROUP REPORTED TOTAL FACTORYLEVEL AUDIO SYSTEM SALES IN THE US UP 48 TO 305 BILLION FOR THE FIRST HALF OF THE YEAR COMPACTDISK BOOMBOX SALES AN AREA IN WHICH AIWA IS PARTICULARLY STRONG SOARED 21 TO 319 MILLION THEY ADDED THE YEN'S SHARP RISE AGAINST THE DOLLAR HAS DRIVEN UP SHIPPING COSTS FOR AIWA AMERICA BUT IT HAS NOT HURT THE COMPANY AS MUCH AS IT HAS SOME JAPANESE COMPETITORS MR YAMAMOTO ASSERTED IN PART DUE TO AN AGGRESSIVE PUSH TO MOVE PRODUCTION FACILITIES OVERSEAS AT PRESENT MAYBE BETWEEN 50 AND 60 OF AIWA PRODUCTION FACILITIES ARE OVERSEAS PART OF A STRATEGY TO MOVE TO AREAS WITH MORE FAVORABLE EXCHANGE RATES AND AS MUCH AS 80 OF AIWA'S PRODUCTION FACILITIES COULD BE BASED IN SOUTHEAST ASIA LATIN AMERICA AND EUROPE BEFORE THE YEAR 2000 WHEN YOU BUY FROM ASIA AND THEN SELL TO THE US THE JAPANESE YEN DOESN'T HAVE THAT MUCH IMPACT HE NOTED STILL MR YAMAMOTO CONCEDED THAT AIWA'S PROFIT OVERALL HAS SUFFERED IN RECENT YEARS NET INCOME FELL 93 TO 126 MILLION YEN 12 MILLION IN FISCAL 1992 FROM ALMOST 19 BILLION YEN IN 1991 DUE TO AN ACCOUNTING CHANGE AS WELL AS SHARP COMPETITION IN US AND EUROPEAN MARKETS AND TO CURRENCY EXCHANGE RATES PROFIT RECOVERED TO 22 BILLION YEN IN 1993 HELPED BY THE ACCOUNTING CHANGE AND GROWING SALES ALTHOUGH SALES IN JAPAN HAVE BEEN SLOW THE US OPERATION IS INCREASING ITS PRESENCE AIWA AMERICAN RECENTLY EXPANDED ITS MARKETING AND WAREHOUSE OPERATIONS IN CALIFORNIA AND THE PARENT COMPANY THIS JUNE COMPLETED THE BUYOUT OF CORE INTERNATIONAL A US COMPUTER CONCERN IN FLORIDA THE US UNIT HAS HAD TO RAISE WHOLESALE PRICES ON A MIX OF OLDER AND NEWER MODELS IN SOME STORES MR YAMAMOTO SAID ALTHOUGH HE DIDN'T PROVIDE SPECIFICS BUT HE SAID PRICES REMAIN COMPETITIVE AND INVENTORY IS STILL TURNING BRISKLY OUR INVENTORIES ARE VERY HEALTHY SOME HOT ITEMS HAVE BEEN IN VERY SHORT SUPPLY ITEMS FOR WHICH HE FORESEES PARTICULARLY GOOD OPPORTUNITIES INCLUDE AIWA'S LINE OF MULTISYSTEM VIDEOCASSETTE RECORDERS A CONCEPT THE COMPANY ORIGINATED WHICH WORK WITH EUROPEAN AMERICAN AND ASIAN ELECTRICAL SYSTEMS THERE IS A BIG MARKET FOR THESE AMONG TOURISTS HE SAID SALES FOR AIWA'S VERSION OF MINICOMPACT DISK PLAYERS THE RECORDING TECHNOLOGY PIONEERED BY AIWA MAJORITY SHAREHOLDER SONY WILL PROBABLY NOT PICK UP MUCH IN THE NEARTERM DUE TO ITS STILLLOFTY PRICE RANGE THE BOTTOMLINE MINIDISK PLAYER RETAILS AT AROUND 500 RETAIL STORES AREN'T READY TO GIVE MORE SPACE TO THIS PRODUCT WHILE THE MEDIUM IS STILL NEW HE NOTED BUT HE PREDICTED STRONGER SALES OF THE ITEM WHICH COMPETES WITH THE NEW DIGITAL COMPACT CASSETTE TECHNOLOGIES ALSO OUT OF JAPAN IN MAYBE THREE OR FOUR YEARS 9309200121 930920 MARKETING & MEDIA WEIGHT WATCHERS PITCHES DIET PROGRAM USING INFOMERCIAL COMPANY HOPES TO DISTANCE ITSELF FROM MIRACLE CLAIMS IN 30MINUTE TELEVISION AD BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL IN A BID TO SET ITSELF APART FROM LOWRENT RIVALS WHO TOUT MIRACLE DIETS ON LATENIGHT TELEVISION WEIGHT WATCHERS INTERNATIONAL HAS BEGUN PITCHING ITS 30YEAROLD DIET PROGRAM USING ONE OF THE COMPETITION'S MOST EFFECTIVE TACTICSTHE INFOMERCIAL TITLED A BRAND NEW WOMAN THE 30MINUTE DOCUMENTARYSTYLE COMMERCIAL TELLS THE HEARTTUGGING STORY OF A WOMAN WHO JOINED WEIGHT WATCHERS LOST MORE THAN 40 POUNDS FELL IN LOVE AND BECAME AN AEROBICS INSTRUCTOR IT BEGAN AIRING YESTERDAY AS A TEST IN MIDWEST MARKETS WHICH WEIGHT WATCHERS A UNIT OF HJ HEINZ CO DECLINES TO IDENTIFY THE EFFORT COINCIDES WITH A CONTINUING FEDERAL TRADE COMMISSION INVESTIGATION INTO THE WEIGHTLOSS CLAIMS OF FIVE HEAVYWEIGHTS OF THE DIETPROGRAM INDUSTRY WEIGHT WATCHERS JENNY CRAIG INC DIET CENTER INC PHYSICIANS WEIGHT LOSS CENTERS OF AMERICA INC AND NUTRI/SYSTEM INC WHICH FILED FOR BANKRUPTCYCOURT PROTECTION THIS SUMMER PRODUCED BY THE NEW YORK OFFICE OF AGENCY EARLE PALMER BROWN WEIGHT WATCHERS' INFOMERCIAL PROFILES AN ACTUAL CUSTOMER BARBARA CROSS A 30YEAROLD HIGH SCHOOL TEACHER IN WACO TEXAS WHO JOINED THE PROGRAM IN 1989 WEIGHING 186 POUNDS AND NOW WEIGHS ABOUT 140 IT INTERSPERSES HOME MOVIES AND SNAPSHOTS OF MS CROSS AS AN OVERWEIGHT CHILD AND ADULT WITH CLIPS OF INTERVIEWS WITH HER PARENTS HER HUSBAND HER FRIENDS AND MS CROSS HERSELF THE SPOT OPENS AS A SVELTELOOKING MS CROSS TELLS HOW AS AN OVERWEIGHT TEEN SHE WAS HUMILIATED AFTER TRYING OUT FOR CHEERLEADING INSPIRATIONAL MUSIC SWELLS AND A NARRATOR INTONES WHEN THIS YOUNG LADY WAS AT HER LOWEST EBB SHE FOUND A WAY OUT OF HER DESPAIR SHE FOUND WEIGHT WATCHERS AND IT CHANGED HER LIFE THE AD INCLUDES A PRINTED DISCLAIMER THAT SCROLLS ACROSS THE SCREEN WHICH SAYS IN PART AS PEOPLE VARY SO DOES INDIVIDUAL WEIGHT LOSS TWICE DURING THE SPOT VIEWERS ARE OFFERED A SPECIAL ENROLLMENT DEAL AND A FREE GIFT JEFFREY MYERS WEIGHT WATCHERS' VICE PRESIDENT OF MARKETING ASSERTS THAT COMPETITORS HAVE BEEN PREYING ON PROSPECTIVE CUSTOMERS BY MAKING FAST AND QUICK PROMISES WITH THIS INFOMERCIAL WEIGHT WATCHERS HOPES TO DISTANCE ITSELF FROM SUCH PROMISES THERE ARE A LOT OF NONTRADITIONAL COMPETITORS AND PRETENDERS TO THE THRONE HE SAID WE'VE NEVER PROMISED TO BE THE MIRACLE CURE WEIGHT WATCHERS INTERNATIONAL IS THE LARGEST DIETPROGRAM BRAND BUT COMPETITION WITH RIVALS HAS GROWN FIERCE AS SALES HAVE SLOWED IN 1992 SALES OF THE DIETPROGRAMS CATEGORY WERE ABOUT 209 BILLION OFF FROM 211 BILLION IN 1991 ACCORDING TO MARKET DATA SYSTEMS OF VALLEY STREAM NY THE DECLINE IS A FUNCTION OF THE TIGHTER ECONOMY SAYS ANALYST RONALD ROTTER OF THE SCHEIDLER COS IN LOS ANGELES WEIGHT WATCHERS' MR MYERS SAYS THAT THE COMPANY HAS INTERVIEWS WITH EIGHT MORE CUSTOMERS ON TAPE AND MAY TURN THEM INTO FUTURE EPISODES THERE'S NO SHORTAGE OF PEOPLE WILLING TO STEP FORWARD TO TELL A REMARKABLE STORY HE SAID 9309200120 930920 CYTOGEN EXPECTS LOSS TO WIDEN IN QUARTER RESTRUCTURING IS SET SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUFFETED BY DISAPPOINTING SALES OF ITS LEAD PRODUCT CYTOGEN CORP PLANS A RESTRUCTURING TO CUT EXPENSES AND BOLSTER DEVELOPMENT OF CERTAIN NEWPRODUCT CANDIDATES AS PART OF THE PLAN PRINCETON NJ MAKER OF CANCERTREATMENT PRODUCTS WILL ELIMINATE 58 JOBS OR 31 OF ITS WORK FORCE OF 190 ACCORDING TO GEORGE W EBRIGHT CHAIRMAN AND CHIEF EXECUTIVE THE RESTRUCTURING ALSO MEANS THAT SOME PRODUCTS IN EARLY STAGES OF DEVELOPMENT MIGHT BE PUT ON HOLD ANYTHING THAT ISN'T ONE OF OUR TOP THREE OBJECTIVES COULD WELL BE REPRIORITIZED HE SAID THE PLAN AIMS TO CUT GROSS SPENDING BY 10 MILLION ON AN ANNUALIZED BASIS THE COMPANY'S THREE MAIN GOALS NOW MR EBRIGHT SAID ARE TO BOOST SALES OF ITS LEAD PRODUCT ONCOSCINT CR/OV AN IMAGING AGENT FOR DIAGNOSING COLORECTAL AND OVARIAN CANCER TO SEEK FOOD AND DRUG ADMINISTRATION APPROVAL IN NEXT YEAR'S SECOND HALF FOR A PROSTATECANCER IMAGING PRODUCT AND TO FILE WITH THE FDA BY NEXT YEAR'S SECOND HALF FOR ITS RECENTLY ACQUIRED DRUG SAMARIUM EDTMP FOR RELIEF OF BONE PAIN ASSOCIATED WITH CANCER METASTASES MR EBRIGHT SAID CYTOGEN EXPECTS ONETIME THIRDPERIOD CHARGES RELATED TO THE RESTRUCTURING OF 750000 ALSO IN THE QUARTER THE COMPANY WILL ESTABLISH AN INVENTORY RESERVE OF 13 MILLION FOR THE THIRD QUARTER MR EBRIGHT SAID A NET LOSS OF 84 MILLION OR 40 CENTS A SHARE IS EXPECTED SUCH A LOSS WOULD BE LARGER THAN ANALYSTS ANTICIPATED AND 75 WIDER THAN THE YEAREARLIER PERIOD'S LOSS OF 48 MILLION OR 29 CENTS A SHARE REVENUE IS PROJECTED TO BE 28 MILLION DOWN 34 FROM YEAREARLIER 29 MILLION SALES OF ONCOSCINT CR/OV HAVE BEEN SLOWER THAN ANTICIPATED DUE TO THE NEED TO FIRST FULLY EDUCATE THE NUCLEARMEDICINE COMMUNITY IN THE PROPER USE OF THIS NEW TECHNOLOGY SAID CYTOGEN PRESIDENT DR THOMAS J MCKEARN IN A NEWS RELEASE HE ALSO CITED A DELAY IN THE APPROVAL OF OUR LAUNCH PROMOTIONAL MATERIALS 9309200119 930920 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ATLANTIC CITY ELECTRIC CO A UNIT OF ATLANTIC ENERGY INC 80 MILLION100 MILLION OF 30YEAR NONCALLABLE DEBT VIA COMPETITIVE BID A PEA IN THE POD INITIAL 16 MILLION SHARES VIA ROBERTSON STEPHENS & CO ALC COMMUNICATIONS 6 MILLION SHARES 48 MILLION IN THE US VIA PAINEWEBBER INC AMERICAN HERITAGE LIFE INVESTMENT CO 25 MILLION SHARES VIA MERRILL LYNCH & CO APS HOLDING CORP INITIAL 69 MILLION SHARES VIA CS FIRST BOSTON ASYST TECHNOLOGIES INC 13 MILLION SHARES VIA NEEDHAM & CO COBRA GOLF INC INITIAL 33 MILLION SHARES 25 MILLION IN THE US VIA LEHMAN BROTHERS COMPUTER NETWORK TECHNOLOGY 3 MILLION SHARES 25 MILLION BY THE COMPANY VIA PIPER JAFFRAY INC CONSUMERS POWER CO A UNIT OF CMS ENERGY CORP 600 MILLION TWOTRANCHE DEBT OFFERING VIA MORGAN STANLEY & CO AND GOLDMAN SACHS & CO DEERE & CO 7 MILLION SHARES 56 MILLION IN THE US VIA MERRILL LYNCH DRAKE HOLDINGS INITIAL 84 MILLION SHARES VIA SMITH BARNEY SHEARSON DUKE REALTY INVESTMENTS INC 11450000 SHARES VIA MERRILL LYNCH EQUITABLE RESOURCES INC 27 MILLION SHARES VIA CS FIRST BOSTON GRAND CASINOS INC 43 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP GREEN TREE FINANCIAL CORP 25 MILLION SHARES VIA MERRILL LYNCH HERZFELD CARIBBEAN BASIN FUND INITIAL 2 MILLION SHARES VIA THOMAS HERZFELD & CO HOMETOWN BUFFETS INC INITIAL 2 MILLION SHARES VIA MONTGOMERY SECURITIES LANDSTAR SYSTEM INC SECONDARY 55 MILLION SHARES VIA MORGAN STANLEY AND ALEX BROWN LESCO INC 14 MILLION SHARES VIA ROBERTSON STEPHENS MONACO COACH CORP INITIAL 16 MILLION SHARES VIA WILLIAM BLAIR NETMANAGE INC INITIAL 22 MILLION SHARES 19 MILLION BY THE COMPANY VIA ROBERTSON STEPHENS NEUREX CORP INITIAL 3 MILLION CLASS A SHARES VIA LEHMAN BROTHERS AND KIDDER PEABODY & CO PACIFICORP 5 MILLION SHARES VIA MERRILL LYNCH POLYGRAM NV UP TO 10 MILLION SHARES VIA GOLDMAN SACHS REPUBLIC OF PORTUGAL 1 BILLION OF INTERMEDIATE DEBT VIA MERRILL LYNCH AND IBJ SAMUEL GOLDWYN CO UP TO 14 MILLION SHARES VIA PRUDENTIAL SECURITIES INC SOMERSET SAVINGS BANK 112 MILLION SHARES VIA LEGG MASON WOOD WALKER INC SUMMA FOUR INC INITIAL 2 MILLION SHARES VIA MONTGOMERY TECUMSEH PRODUCTS CO 53 MILLION CLASS B SHARES VIA GOLDMAN SACHS TEMPLETON EMERGING MARKETS INCOME FUND INC INITIAL 100000 SHARES VIA KIDDER PEABODY VIGORO CORP 28 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE AURORA COLO 115 MILLION OF SERIES 1993 WATER REFUNDING UNLIMITEDTAX BONDS VIA COMPETITIVE BID TEXAS 14 BILLION OF SERIES 1993 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID CONNECTICUT 175 MILLION OF 1993 SERIES C SPECIAL TAX OBLIGATION BONDS FOR TRANSPORTATION INFRASTRUCTURE PURPOSES VIA COMPETITIVE BID CALIFORNIA STATE PUBLIC WORKS BOARD 1005 MILLION OF LEASE REVENUE BONDS VIA A GRIGSBY BRANDFORD & CO GROUP FRESNO CALIF 203 MILLION OF SEWER SYSTEM REVENUE BONDS VIA A JP MORGAN SECURITIES INC GROUP KENTUCKY HIGHER EDUCATION STUDENT LOAN CORP 130 MILLION OF STUDENTLOAN REVENUE BONDS SERIES A B AND C VIA A PAINEWEBBER GROUP MICHIGAN HIGHER EDUCATION STUDENT LOAN AUTHORITY 158 MILLION OF BONDS VIA A SMITH BARNEY SHEARSON GROUP NEW YORK STATE DORMITORY AUTHORITY 4265 MILLION OF REFUNDING REVENUE BONDS VIA A MORGAN STANLEY GROUP NEW YORK STATE PROJECT FINANCE AGENCY 1785 MILLION OF SERIES 1993A REVENUE BONDS VIA A FIRST BOSTON CORP GROUP PUERTO RICO HOUSING BANK & FINANCE AGENCY 4149 MILLION OF REFUNDING BONDS VIA A KIDDER PEABODY GROUP SACRAMENTO MUNICIPAL UTILITY DISTRICT 145 MILLION OF SERIES 1993G BONDS VIA A GOLDMAN SACHS GROUP SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY 1037 MILLION OF SERIES 1993B POWER SUPPLY SYSTEM REVENUE BONDS VIA A MORGAN STANLEY GROUP AN OFFERING OF 53 MILLION TECUMSEH PRODUCTS CO CLASS A SHARES UNDERWRITTEN BY GOLDMAN SACHS & CO IS EXPECTED TO BE PRICED THIS WEEK YESTERDAY'S SECURITIES OFFERING CALENDAR INCORRECTLY LISTED THE SHARES AS CLASS B 9309200118 930920 DUTCH UNEMPLOYMENT AMSTERDAM DUTCH REGISTERED UNEMPLOYMENT IN THE ROLLING THREEMONTH PERIOD ENDING AUG 31 HAS REACHED LEVELS NOT SEEN SINCE OCTOBER 1989 THE GOVERNMENT'S CENTRAL BUREAU FOR STATISTICS SAID THE CBS SAID THE NUMBER ROSE BY 100000 OR 37 FROM THE LIKE THREEMONTH PERIOD A YEAR AGO BUT WAS ONLY A MODEST 4 HIGHER COMPARED WITH THE ROLLING PERIOD ENDED JULY 31 THE GOVERNMENT DIDN'T RELEASE A PERCENTAGE FIGURE FOR UNEMPLOYMENT ACCORDING TO THE DATA 374000 JOB SEEKERS WERE UNEMPLOYED ON AVERAGE IN THE JUNEAUGUST PERIOD 17000 MORE THAN IN THE PREVIOUS ROLLING PERIOD THIS FIGURE IS THE HIGHEST SEEN IN THE NETHERLANDS SINCE OCTOBER 1989 WHEN THE NUMBER OF REGISTERED UNEMPLOYED TOTALED 378000 9309200117 930920 WHO'S NEWS ANDREW CORP ANDREW CORP ORLAND PARK ILL CAROLE M HOWARD VICE PRESIDENT PUBLIC RELATIONS AND COMMUNICATIONS POLICY FOR READER'S DIGEST ASSOCIATION INC WAS ELECTED A DIRECTOR OF THIS MAKER OF TELECOMMUNICATIONS ANTENNA AND TRANSMISSION LINES INCREASING BOARD MEMBERSHIP TO EIGHT 9309200116 930920 GERMAN STUDY SAYS DISPOSABLE INCOME WILL BE DECLINING BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANS WILL HAVE TO GET BY WITH LESS IN COMING YEARS AS INFLATION NEW TAXES AND MORE SOCIAL CONTRIBUTIONS EAT INTO DISPOSABLE INCOME ACCORDING TO A GOVERNMENT STUDY A STUDY BY THE GERMAN FINANCE MINISTRY SET DOWN WHAT MANY GERMANS HAVE FIGURED OUT FOR THEMSELVES AS WAGES STAGNATE ALONGSIDE RISING PAYCHECK DEDUCTIONS THE MINISTRY PROJECTED THAT THE DISPOSABLE INCOME OF THE AVERAGE FOURMEMBER HOUSEHOLD WOULD SHRINK BY 29 BETWEEN 1993 AND THE END OF 1995 SINGLES SHOULD SEE THEIR INCOMES DIMINISH BY A REAL 48 THE MINISTRY SAID THE CALCULATIONS WHICH BODE ILL FOR A DOMESTICALLY FUELED ECONOMIC RECOVERY WERE DEFENDED BY FINANCE MINISTER THEO WAIGEL AS MERELY HOLDING DISPOSABLE INCOMES AT 1989 LEVELS THE GOVERNMENT'S EQUATION ASSUMES MODEST AVERAGE NOMINAL WAGE INCREASES OF 27 IN 1994 AND 36 IN 1995 BUT THE EQUATION ALSO PROJECTED ANNUAL INFLATION RATES IN WESTERN GERMANY OF 4 THIS YEAR FOLLOWED BY PRICE RISES OF 3 IN BOTH 1994 AND 1995 AT THE SAME TIME HIGHER TAXES ON PETROLEUM PRODUCTS NEXT YEAR WILL BE JOINED IN 1995 BY A NEW 75 SOLIDARITY TAX ON INCOME TO HELP FINANCE GERMAN UNITY COSTS SEPARATELY THE COALITION GOVERNMENT IN BONN STUMBLED INTO A NEW FINANCING CRISIS THIS WEEKEND AMID RIFTS OVER FUNDING MODELS FOR A NURSING CARE PROGRAM SOCIAL INSURANCE FUNDING HAS ADDED MORE TENSION BETWEEN CHANCELLOR HELMUT KOHL'S CHRISTIAN DEMOCRATIC UNION AND HIS JUNIOR COALITION PARTNER THE FREE DEMOCRATIC PARTY THE FDP WHICH REPRESENTS BUSINESS INTERESTS BELIEVES THE CDU IS BOWING TO PRESSURE FROM THE OPPOSITION SOCIAL DEMOCRATS OVER EMPLOYER CONTRIBUTIONS TO LIMIT VOTER DEFECTIONS DURING GERMANY'S HEAVY 1994 ELECTION CALENDAR THE PROPOSED SOCIAL INSURANCE PROGRAM FOR LONGTERM NURSING CARE IS TO BE FINANCED FROM REGULAR CONTRIBUTIONS BY BOTH EMPLOYERS AND EMPLOYEES BUT THE FDP CLAIMING THAT GERMAN INDUSTRY IS ALREADY OVERBURDENED WITH COSTS INSISTS THAT INDUSTRY OUTLAYS ARE OFFSET BY FEWER WORKER VACATION DAYS 9309200115 930920 HAWAII HOTEL SALE SIGNALS INTEREST IN SIMILAR DEALS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL THE DISTRESS SALE OF THE HYATT REGENCY WAIKOLOA TO A GROUP LED BY COLONY CAPITAL INC AND HILTON HOTELS CORP SIGNALS A BROADER INTEREST IN FIRSTCLASS HOTEL TRANSACTIONS IN HAWAII AND ELSEWHERE THE INVESTORS SAID COLONY AND HILTON HAVE AGREED TO ACQUIRE THE 1244ROOM RESORT ON THE BIG ISLAND OF HAWAII FOR ROUGHLY 60 MILLION AND HAVE PLEDGED AN ADDITIONAL 30 MILLION FOR CAPITAL IMPROVEMENTS HILTON HAS AGREED TO TAKE A 13 INTEREST IN THE PROPERTY AND WILL MANAGE IT PEOPLE CLOSE TO THE TRANSACTION SAID PAN GLOBAL PARTNERS A HAWAII GROUP THAT INCLUDES TAIWANESE INVESTORS ALSO IS INVESTING IN THE TRANSACTION THE WAIKOLOA LOCATED ON 61 ACRES ALONG THE KOHALA COAST OPENED IN 1988 ITS CONSTRUCTION COST WAS 360 MILLION PEOPLE FAMILIAR WITH THE PROPERTY SAID THE RESORT WAS OWNED BY A PARTNERSHIP THAT INCLUDED HYATT CORP THE BASS BROTHERS A JAPANESE INVESTOR AND CHRISTOPHER HEMMETER WHO DESIGNED THE FANTASY RESORT THE SALE WHICH IS EXPECTED TO BE COMPLETED BY NOV 5 WAS THE RESULT OF MONTHS OF NEGOTIATIONS BY THE COLONY AND HILTON GROUP WITH A GROUP OF LENDERS HEADED BY MITSUBISHI BANK A HYATT SPOKESWOMAN DECLINED TO COMMENT AND MR HEMMETER AND BASS EXECUTIVES DIDN'T RETURN TELEPHONE CALLS COLONY AND HILTON EXECUTIVES DECLINED TO DISCUSS TERMS OF THE SALE BUT SAID THEIR PURCHASE OF THE WAIKOLOA IS A LONGTERM BET ON HAWAII'S FUTURE AND ON SELECT FIRSTCLASS HOTELS IN GENERAL THE WAIKOLOA IS THE FIRST LODGING INVESTMENT IN RECENT YEARS FOR COLONY WHICH HAS SUNK ABOUT 22 BILLION INTO REAL ESTATE POOLS MORTGAGE PORTFOLIOS AND RELATED INVESTMENTS SINCE 1991 PEOPLE ARE ALWAYS GOING TO WANT TO GO TO HAWAII AND THERE'S NO WAY TO REPLICATE THIS ASSET SAID THOMAS J BARRACK JR COLONY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER UNLIKE STANDARD FULLSERVICE HOTELS WHICH ARE HOMOGENOUS HE SAID FIRSTCLASS PROPERTIES LIKE THE WAIKOLOA SHOULD BE AMONG THE FIRST TO BENEFIT IN THE LODGINGINDUSTRY TURNAROUND RAYMOND AVANSINO HILTON'S PRESIDENT SAID HILTON WILL LOOK FOR MORE INVESTMENTS IN FINANCIALLY DISTRESSED BUT PROMISING PROPERTIES IN THE HOTEL AND GAMBLING SECTORS THE BATTERED HAWAIIAN TOURISM MARKET SHOULD BEGIN TO TURN AROUND WITHIN THE NEXT 18 MONTHS HE SAID AND HILTON PLANS TO SQUEEZE COSTS AND PROMOTE THE WAIKOLOA'S CONVENTION BUSINESS TO IMPROVE OPERATIONS SEVERAL RESORTS SUFFERING FROM CRUSHING DEBT AND MOUNTING PRESSURE FROM LENDERS ARE QUIETLY BEING SHOPPED AROUND REAL ESTATE EXPERTS SAID THE BOTTOM LINE IS THAT IT'S GETTING BACK DOWN TO ECONOMICS SAID JAN R MEDUSKY PRESIDENT OF COWELL & CO REAL ESTATE CONSULTANTS IN HONOLULU JIM CARLTON IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9309200113 930920 JAPAN'S ECONOMIC PLAN INCLUDES LIBERALIZATION OF ITS BOND MARKETS SPECIAL TO THE WALL STREET JOURNAL TOKYO THE ECONOMIC STIMULUS PACKAGE THE JAPANESE GOVERNMENT UNVEILED THURSDAY INCLUDES MEASURES THAT WILL LIBERALIZE THE DOMESTIC CORPORATE BOND MARKET GIVING ISSUERS MORE OPTIONS IN THE TYPE OF BONDS THEY CAN OFFER AMONG THE 94 DEREGULATORY MEASURES IN THE PACKAGE THE FINANCE MINISTRY AIMS TO ALLOW COMPANIES TO ISSUE FIVEYEAR MATURITIES AND FLOATINGRATE NOTES IN JAPAN BY THE END OF THE YEAR THE LATEST MOVE FOLLOWS AN EASE IN THE STANDARD FOR ISSUING CORPORATE BONDS IN JAPAN THIS YEAR AND COMES AS MANY JAPANESE COMPANIES ARE TURNING TO THE DOMESTIC BOND MARKET TO RAISE FUNDS THIS MONTH JAPANESE COMPANIES HAVE ISSUED 595 BILLION YEN 57 BILLION OF FIXEDRATE BONDS IN THE DOMESTIC MARKET A ONEMONTH RECORD UNTIL NOW ONLY JAPAN'S LONGTERM CREDIT BANKS HAVE BEEN ALLOWED TO ISSUE FIVEYEAR MATURITIES IN THE DOMESTIC MARKET THE FIVEYEAR DEBENTURES ARE A KEY SOURCE OF FUNDS FOR THE BANKS AND THE COUPON OF THE MONTHLY ISSUE OF FIVEYEAR DEBENTURES IS THE BENCHMARK FOR THE LONGTERM PRIME LENDING RATE THE MINISTRY PREVENTED OTHER FIVEYEAR ISSUES IN THE DOMESTIC MARKET TO RESTRICT COMPETITION WITH THE BANK DEBENTURES BUT IN THE BROAD TREND TO LIBERALIZE JAPANESE FINANCIAL MARKETS THE MINISTRY IS LIFTING THE RESTRICTION ON FIVEYEAR MATURITIES UNDERWRITERS SAY LIFTING THE BAN ON DOMESTIC CORPORATE ISSUES OF FLOATINGRATE NOTES IS ALSO IN LINE WITH THE TREND TO LIBERALIZE THE MINISTRY ALREADY ALLOWS FLOATINGRATE SAMURAI NOTES SAMURAI BONDS ARE OFFERED BY FOREIGN ISSUERS FOR SETTLEMENT IN JAPAN ALONE 9309200112 930920 MOLTEN METAL WILL OPEN TEST FACILITY FOR TREATMENT OF HAZARDOUS WASTE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL MOLTEN METAL TECHNOLOGY INC A TINY COMPANY WHOSE TECHNOLOGY FOR HAZARDOUS WASTE TREATMENT HAS INFATUATED INVESTORS WILL OPEN ITS FIRST COMMERCIALSIZE DEMONSTRATION PLANT TODAY IN FALL RIVER MASS MOLTEN METAL HAS NEVER SHOWN A PROFIT OR RECEIVED REVENUE FROM ANYTHING BUT RESEARCH CONTRACTS IT WENT PUBLIC IN FEBRUARY AT 14 AND CLOSED FRIDAY IN OVERTHECOUNTER TRADING AT 2275 UP 250 THE SOURCE OF THE EXCITEMENT IS MOLTEN METAL'S TECHNOLOGY FOR BREAKING DOWN HAZARDOUS WASTES SUCH AS PLASTICS SOLVENTS AND EVEN POLYCHLORINATED BIPHENYLS INTO CARBON AND WATER IN A BATH OF MOLTEN IRON THE 3000DEGREE IRON CAUSES A CATALYTIC REACTION THAT CAUSES THE WASTES TO DISASSOCIATE INTO THEIR ORIGINAL ELEMENTS THE PROCESS CAN BE ADJUSTED FOR METAL WASTES TO PERMIT RECOVERY OF SCRAP AND BYPRODUCTS CARBON ATOMS AND HYDROGEN ATOMS AS BENZENE RINGS CAN BE ENVIRONMENTAL PROBLEMS AS ATOMS THEY CAN BE BENIGN SAYS WILLIAM HANEY CHAIRMAN AND CHIEF EXECUTIVE AT THE PLANT OPENING TODAY THOMAS GRUMBLY AN ASSISTANT SECRETARY FOR WASTE MANAGEMENT WITH THE ENERGY DEPARTMENT WILL SAY HE HOPES TO EXPAND FUNDING FOR MOLTEN METAL'S TECHNOLOGY FROM THE PLANNED 16 MILLION NEXT YEAR THEY ARE ACCELERATING AND WE SEE A POTENTIAL FOR AN ORDER OF MAGNITUDE INCREASE OVER THE NEXT 12 MONTHS MR HANEY SAID THE ENERGY DEPARTMENT SAID BUDGET SPECIFICS AREN'T AVAILABLE THE ENERGY DEPARTMENT IS TRYING TO CLEAN UP OLD WEAPON SITES WHERE MANY OF THE WASTES CONTAMINATED BY RADIOACTIVITY ARE ALSO TOXIC USING THE MOLTEN METAL TECHNOLOGY THE HAZARDOUS MATERIALS CAN BE SEPARATED FROM THE RADIOCATIVE PORTION WHICH IS THEN ENCAPSULATED IN GLASSLIKE BLOCKS THAT CONTAIN THE LOWLEVEL RADIATION MR HANEY SAYS DOUGLAS R AUGENTHALER AN ANALYST WITH OPPENHEIMER & CO PREDICTS THAT MOLTEN METAL WILL HAVE REVENUE OF 17 MILLION NEXT YEAR AND 61 MILLION IN 1995 WHEN HE EXPECTS IT TO BECOME MODERATELY PROFITABLE REVENUE COULD REACH 105 MILLION IN 1996 HE SAYS MOLTEN METAL'S NEW 15 MILLION PLANT WAS 25 FUNDED BY DUPONT CO IT INCLUDES SEVEN DIFFERENT BATHS THE LARGEST OF WHICH CAN HANDLE TWO TONS OF WASTE AN HOUR IT IS SCHEDULED TO BE TESTED ON A WIDE ARRAY OF WASTES ALTHOUGH RADIOACTIVE WASTES WON'T BE HANDLED THERE MR HANEY SAID WE WOULD NEVER EVER TREAT RADIOACTIVE WASTE IN MASSACHUSETTS SAID MR HANEY WE WOULD TREAT IT ONLY ON A DOE SITE NEXT YEAR MOLTEN METAL EXPECTS TO START BUILDING COMMERCIAL FACILITIES RATHER THAN BUILD LARGE CENTRAL FACILITIES TO WHICH MANY COMPANIES CAN TRUCK WASTE MOLTEN EXPECTS TO BUILD FACILITIES AT PLANTS THAT GENERATE HAZARDOUS WASTES IT PLANS TO FOCUS EARLY EFFORTS IN THE TEXAS AND LOUISIANA AREA WHERE DOZENS OF PETROCHEMICAL PLANTS OPERATE MR HANEY SAID THAT DEPENDING ON VOLUME THE PLANTS COULD COST FROM 5 MILLION TO 50 MILLION APIECE WE WANT TO BE INCORPORATED INTO EXISTING PLANTS AND BUILD MANY PLANTS TO A SMALL SCALE RATHER THAN TRANSPORTING WASTES PAST SCHOOLS AND CHURCHES MR HANEY SAID TREATING THE WASTE ON SITE WOULD ALSO ELIMINATE BURDENSOME REGULATION BECAUSE WASTE TREATMENT WOULD BECOME PART OF THE MANUFACTURING PROCESS MOLTEN METAL EXPECTS TO SELL SEVERAL PLANTS BY THE END OF THE FIRST QUARTER OF 1994 AND HAVE THEM IN OPERATION EARLY IN 1995 MR HANEY SAID 9309200111 930920 BUSINESS BRIEF KODAK CALLS IT A CHALLENGE' TO MATCH OPERATING PROFIT OF 1992 THIRD QUARTER EASTMAN KODAK CO CITING NEGATIVE CURRENCY EXCHANGE AND PRICING PRESSURE FOR JULY AND AUGUST SAID IT WOULD BE A CHALLENGE TO MATCH LAST YEAR'S THIRDQUARTER OPERATING PROFIT RESULTS FOR THE QUARTER WILL BE REPORTED OCT 27 IN THE YEARAGO QUARTER THE ROCHESTER NY PHOTOGRAPHY CHEMICAL AND HEALTHCARE COMPANY EARNED 189 MILLION OR 58 CENTS A SHARE AFTER A RESTRUCTURING CHARGE OF 141 MILLION REVENUE WAS 52 BILLION WITHOUT CHARGES EARNINGS WOULD HAVE BEEN 330 MILLION OR 101 A SHARE ANALYSTS QUICKLY TRIMMED THEIR ESTIMATES FOR THE QUARTER AND THE FULL YEAR GOLDMAN SACHS ANALYST JACK KELLY NOW EXPECTS KODAK TO EARN ABOUT 335 A SHARE FOR THE YEAR COMPARED WITH HIS EARLIER ESTIMATE OF 370 LAST YEAR EARNINGS WERE 115 BILLION OR 353 A SHARE ON REVENUE OF 202 BILLION THE EARNINGS REFLECT 152 MILLION OR 47 CENTS A SHARE FROM THE BENEFICIAL IMPACT OF ACCOUNTING CHANGES WHICH WAS NEARLY OFFSET BY RESTRUCTURING CHARGES OF 141 MILLION OR 43 CENTS A SHARE KODAK SHARES CLOSED FRIDAY AT 59875 DOWN 1875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR THE CURRENT QUARTER KODAK SAID JULY AND AUGUST REVENUE IS DOWN BY MIDSINGLE DIGITS FROM A YEAR EARLIER BECAUSE VOLUME GAINS WERE MORE THAN OFFSET BY THE NEGATIVE EFFECTS OF CURRENCY EXCHANGE AND LOWER PRICES IN KODAK'S CORE IMAGING BUSINESS REVENUE FOR JULY AND AUGUST WAS DOWN BY MIDSINGLE DIGITS FROM LAST YEAR KODAK SAID IN HEALTH CARE FLAT VOLUMES SLIGHTLY LOWER PRICES AND NEGATIVE CURRENCYEXCHANGE RATES RESULTED IN JULY AND AUGUST REVENUE THAT WAS SLIGHTLY LOWER THAN A YEAR AGO KODAK SAID IN CHEMICALS REVENUE WAS FLAT BECAUSE OF LOWERTHANEXPECTED VOLUME AND PRICES AND UNFAVORABLE CURRENCY EXCHANGE RATES IT ADDED HOWEVER ANALYSTS SAID KODAK'S SALES MIGHT PICK UP THIS MONTH MAKING THE OVERALL THIRDQUARTER RESULTS BETTER THAN THEY APPEAR TO BE NOW IN PREVIOUS QUARTERS KODAK HAS REPORTED WEAK SALES TREND DATA FOR THE FIRST TWO MONTHS ONLY TO REPORT A BLOCKBUSTER THIRD MONTH 9309200110 930920 LAW LEGAL BEAT MARKETSHARE THEORY OF LIABILITY IS REJECTED IN LEADPAINT LAWSUIT BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL VICTIMS SUING OVER EXPOSURE TO LEAD PAINT MUST PINPOINT WHEN THE PAINT WAS USED A FEDERAL APPEALS COURT RULED MAKING IT HARDER TO SEEK DAMAGES INDUSTRYWIDE FROM FORMER LEADPAINT MANUFACTURERS THE APPEALS COURT DECISION CAME EARLIER THIS MONTH IN THE CASE OF A 20YEAROLD MASSACHUSETTS WOMAN WHO LIKE OTHER LEADPAINT PLAINTIFFS CAN'T IDENTIFY THE MAKER OF THE PAINT THAT SHE SAYS SHE INGESTED AS A CHILD LEAD PAINT CAN CAUSE BRAIN DAMAGE IN CHILDREN IF IT IS EATEN LAWYERS FOR THE WOMAN MONICA SANTIAGO ARGUED THAT EVERY FORMER LEADPAINT MAKER SHOULD BE HELD LIABLE IN PROPORTION TO EACH COMPANY'S SHARE OF THE MARKET BUT THE FEDERAL APPEALS COURT IN BOSTON SAID THE NOVEL MARKETSHARE THEORY OF LIABILITY CAN'T BE USED BECAUSE MS SANTIAGO'S LAWYERS COULDN'T SHOW EXACTLY WHEN THE WALLS IN HER CHILDHOOD HOME WERE PAINTED THAT AMBIGUITY MADE IT UNCLEAR WHICH COMPANIES COULD BE RESPONSIBLE FOR THE LEAD PAINT THE COURT SAID BECAUSE NOT ALL THE COMPANIES WERE IN THE PIGMENT MARKET AT THE SAME TIME APPLYING MASSACHUSETTS LAW THE COURT SAID IT COULDN'T FAIRLY HOLD ALL THE DEFENDANTS RESPONSIBLE THE DEFENDANTS WERE SHERWINWILLIAMS CO CLEVELAND ATLANTIC RICHFIELD CO LOS ANGELES SCM CORP A UNIT OF LONDONBASED HANSON PLC NL INDUSTRIES INC HOUSTON AND THE LEAD INDUSTRIES ASSOCIATION MARKETSHARE LIABILITY HAS BEEN ALLOWED IN SOME CASES INVOLVING THE PREGNANCYDRUG DIETHYLSTILBESTROL OR DES BUT COURTS HAVE BEEN RELUCTANT TO APPLY THE THEORY MORE BROADLY TO THE DISAPPOINTMENT OF PLAINTIFFS' LAWYERS WHO ONCE CROWED THAT LEADPAINT LITIGATION COULD BE AS BIG A MONEYMAKER AS ASBESTOS CLAIMS THE APPELLATE DECISION IN BOSTON AFFIRMED THE FINDINGS OF A LOWER COURT AN APPEALS COURT IN PHILADELPHIA AFFIRMED A SIMILAR LOWERCOURT RULING IN MAY IN ANOTHER MAJOR LEADPAINT CASE LAWYERS BRINGING SUITS AGAINST LEADPAINT MAKERS GENERALLY CONCEDE THAT MARKETSHARE LIABILITY ISN'T GOING ANYWHERE IN FEDERAL COURTS FOR NOW INSTEAD THEY PLAN TO PURSUE SUCH CLAIMS IN STATE COURTS WHICH THEY SAY MIGHT BE MORE OPEN TO EXPANDING THE USE OF MARKETSHARE LIABILITY THAN FEDERAL COURTS HAVE BEEN WE BELIEVE IT CAN STILL BE SUCCESSFUL SAID ARTHUR BRYANT PRESIDENT OF TRIAL LAWYERS FOR PUBLIC JUSTICE WASHINGTON AND ONE OF MS SANTIAGO'S LAWYERS ONE OF THE CLOSELY WATCHED STATECOURT SUITS IS IN NEW YORK WHERE THE CITY GOVERNMENT IS SEEKING RESTITUTION FROM PIGMENT MAKERS FOR MONEY SPENT REMOVING LEAD PAINT FROM CITYOWNED HOUSING NEW YORK'S HIGHEST COURT HAS APPROVED MARKETSHARE THEORY FOR DES CASES BUT HASN'T ADDRESSED THE ISSUE IN LEADPAINT LITIGATION THE NEW YORK CASE IS IN A PRETRIAL FACTFINDING STAGE SOME DEFENSE LAWYERS SCOFF AT THE IDEA THAT LEADPAINT PLAINTIFFS CAN WIN MARKETSHARE CASES ANYWHERE ONLY ABOUT SIX STATES' HIGH COURTS HAVE APPROVED THE THEORY EVEN FOR DES CASES ALTHOUGH THE PLAINTIFFS HAVE TRIED DESPERATELY TO FIT THESE FACTS INTO THE MARKETSHARE BOX IT JUST DOESN'T WORK SAID PAUL MICKEY POHL AN ATTORNEY WITH THE PITTSBURGH OFFICE OF CLEVELAND LAW FIRM JONES DAY REAVIS & POGUE WHO REPRESENTED THE SANTIAGO DEFENDANTS MOST OF THESE PLAINTIFFS HAVE ACCESS TO LEAD FROM ALL KINDS OF SOURCES IN THE ENVIRONMENT NOT JUST PAINT THE PLAINTIFFS TOOK A GOOD SHOT AT A RADICAL THEORY BUT THE COURTS JUST HAVEN'T ACCEPTED IT THE GOVERNMENT CAN INTERCEPT INTERNATIONAL WIRE TRANSFERS WITHOUT A WARRANT A FEDERAL APPEALS COURT SAID FURTHER EXPANDING THE SCOPE OF CIVIL FORFEITURE LAWS THE RULING IS APPARENTLY THE FIRST AT THE APPELLATE LEVEL TO ADDRESS FORFEITURES INVOLVING INTERNATIONAL WIRE TRANSFERS IN WHICH BANK CREDITS USUALLY ARE SHUFFLED FROM A SENDING BANK THROUGH AT LEAST ONE INTERMEDIARY BANK TO A RECEIVING BANK IN THE CASE BEFORE THE SECOND US CIRCUIT COURT OF APPEALS DRUGENFORCEMENT AGENTS SEIZED 12 MILLION AT INTERMEDIARY BANKS IN NEW YORK THE GOVERNMENT HAD A WARRANT TO SEIZE ONLY SOME OF THE MONEY ALL OF WHICH WAS ON ITS WAY TO COLOMBIA THE DEFENDANTS 17 COLOMBIAN COMPANIES THAT SAY THEY ARE CLOTHING EXPORTERS SAID THE GOVERNMENT VIOLATED CONSTITUTIONAL PROTECTIONS AGAINST UNREASONABLE SEARCHES AND SEIZURES THE COMPANIES ALSO SAID THE GOVERNMENT BROKE FEDERAL PRIVACY LAWS BY SUBPOENAING THEIR FINANCIAL RECORDS A THREEJUDGE PANEL OF THE APPEALS COURT IN NEW YORK HOWEVER RULED THAT ELECTRONIC FUND TRANSFERS HAPPEN SO QUICKLY THAT THE GOVERNMENT CAN ACT WITHOUT A WARRANT THE COURT ALSO SAID THE RIGHT TO FINANCIAL PRIVACY ACT DIDN'T APPLY BECAUSE THE DEFENDANTS WEREN'T CUSTOMERS OF THE INTERMEDIARY BANKS THE ELECTRONIC COMMUNICATIONS PRIVACY ACT DIDN'T APPLY THE COURT SAID BECAUSE NO SPECIAL DEVICE SUCH AS A WIRETAP IS USED IN SEIZING A WIRE TRANSFER MONTGOMERY BLAIR SIBLEY A MIAMI ATTORNEY FOR SOME OF THE DEFENDANTS SAID THE GOVERNMENT SHOULD HAVE BEEN BLOCKED BECAUSE IT HAD INSUFFICIENT EVIDENCE TO SEIZE HIS CLIENTS' MONEY HE SAID A DECISION HASN'T BEEN MADE ON WHETHER TO ASK THE FULL APPEALS COURT TO RECONSIDER THE DECISION 9309200109 930920 INTERNATIONAL PRESIDENT YELTSIN ACTS TO RECAPTURE LEAD IN RIVALRY WITH THE RUSSIAN PARLIAMENT BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IN A SERIES OF DECREES AND COMMENTS RUSSIAN PRESIDENT BORIS YELTSIN MOVED TO TAKE BACK THE LEAD IN HIS BATTLE WITH THE CONSERVATIVE PARLIAMENT ON SATURDAY HE DECREED THAT VICE PRESIDENT ALEXANDER RUTSKOI WHO OPENLY OPPOSES THE PRESIDENT AND RADICAL REFORMS WILL NOW NEED SPECIFIC PRESIDENTIAL PERMISSION EVERY TIME HIS JOB REQUIRES HIM TO ACT IN THE PRESIDENT'S PLACE ACCORDING TO THE OFFICIAL NEWS AGENCY ITARTASS IN THE PAST THE VICE PRESIDENT AUTOMATICALLY STOOD IN FOR THE PRESIDENT WHEN MR YELTSIN WAS ABROAD THE PRESIDENT ALSO FULFILLED LAST WEEK'S PROMISE TO BRING REFORMER YEGOR GAIDAR BACK INTO THE GOVERNMENT AND TO MOVE THE MORE CONSERVATIVE ECONOMICS MINISTER OLEG LOBOV OUT OF THE CABINET A CONDITION MR GAIDAR SET FOR AGREEING TO RETURN AND IN A MEETING WITH REGIONAL LEADERS MR YELTSIN SAID HE WOULD ACCEPT EARLY PRESIDENTIAL ELECTIONS AS SOON AS NEXT SPRING IF THE PARLIAMENT AGREES TO NEW PARLIAMENTARY ELECTIONS SIX MONTHS EARLIER MR YELTSIN'S TERM ENDS IN 1996 WHILE PARLIAMENT DEPUTIES FACE ELECTIONS IN 1995 UNDER THE CURRENT CONSTITUTION THE ACCEPTANCE OF EARLY PRESIDENTIAL ELECTIONS IS A COMPROMISE FOR MR YELTSIN WHO UNTIL NOW HAD MAINTAINED THAT THE NATIONWIDE REFERENDUM HELD IN APRIL IN WHICH HE WON RESOUNDING SUPPORT PROVIDES HIM A FRESH MANDATE SO THAT ONLY THE PARLIAMENT NEEDS NEW ELECTIONS MR YELTSIN HAD HOPED THAT A FEDERATION COUNCIL BEING FORMED BY THE REGIONAL LEADERS WOULD PASS HIS VERSION OF A NEW CONSTITUTION INCLUDING GREATER PRESIDENTIAL POWERS THAT WOULD ENABLE HIM TO CIRCUMVENT THE PARLIAMENT AND DECLARE ELECTIONS BUT THE WEEKEND MEETING OF REGIONAL LEADERS FELL TO BICKERING AND FAILED TO ESTABLISH THE COUNCIL PRESSURE THERE HELPED DRIVE MR YELTSIN TO SOFTEN HIS STANCE ON PRESIDENTIAL ELECTIONS MEANWHILE MR RUTSKOI AND PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV HELD A COMPETING MEETING OF PEOPLE'S DEPUTIES SATURDAY IN WHICH THEY ATTACKED THE PRESIDENT AND THE EXECUTIVE BRANCH AND CALLED FOR THE RESTORATION OF THE SOVIET UNION THE PRESIDENT'S OFFER TO COMPROMISE WON'T LEAD HIM MUCH CLOSER TO SUCH ARCHRIVALS BUT MAY OPEN THE DOOR FOR NEGOTIATIONS WITH MODERATES WITHIN THE HOSTILE PARLIAMENT MEANWHILE THE RETURN OF MR GAIDAR SHOULD AT LEAST HELP ALLEVIATE THE SPLIT WITHIN THE GOVERNMENT OVER ECONOMIC POLICY AS THE GOVERNMENT HAS STRUGGLED TO ACHIEVE FINANCIAL STABILIZATION WITHOUT STOPPING INDUSTRIAL AND AGRICULTURAL SUBSIDIES ECONOMIC REFORM HAS FALTERED AND THE SPLIT IN THE CABINET HAS WIDENED IN RECENT WEEKS THE TWO CAMPS HAVE BEEN LED BY FINANCE MINISTER BORIS FYODOROV WHO SEEKS FINANCIAL STABILIZATION AND MR LOBOV THE JUSTSHUFFLED ECONOMICS MINISTER WHO FAVORED CONTINUING INDUSTRIAL AND AGRICULTURAL SUBSIDIES MR LOBOV WILL CONTINUE TO HAVE THE EAR OF THE PRESIDENT FROM HIS NEW INFLUENTIAL POST AS SECRETARY OF THE SECURITY COUNCIL A HANDPICKED PRESIDENTIAL ADVISORY GROUP THE 37YEAROLD MR GAIDAR WHO WAS WIDELY SEEN IN RUSSIA AS ALMOST COLDHEARTED IN HIS PURSUIT OF FINANCIAL AUSTERITY LAST YEAR TOLD HEADS OF PRIVATIZED COMPANIES IN THE SOUTHERN CITY OF ROSTOVONDON FRIDAY STABILIZATION WILL DEMAND TOUGH DECISIONS IN THE AREA OF STATE EXPENDITURE FOREIGN ECONOMIC ACTIVITIES AND DRASTIC CHANGES IN STATE PURCHASING POLICIES ACCORDING TO ITARTASS BUT MR GAIDAR'S RETURN WASN'T A SIMPLE CHOICE BY THE PRESIDENT IF YOU WANT TO UNDERSTAND WHAT'S HAPPENING WITH THE OPPOSING ECONOMIC PROGRAMS DON'T LOOK AT THE ECONOMICS LOOK AT PERSONALITIES A SENIOR MEMBER OF THE WORKING CENTER FOR ECONOMIC REFORM AND AN ADVISER TO THE PRIME MINISTER ANDREI ILLARIONOV SAID EARLIER THIS MONTH THAT'S WHAT IT'S REALLY ABOUT POLITICAL ANALYSTS SAY A SERIOUS RIVALRY WAS BREWING BETWEEN PRIME MINISTER VIKTOR CHERNOMYRDIN AND MR LOBOV MR LOBOV A FRIEND OF THE PRESIDENT SINCE THEIR DAYS TOGETHER IN THE LEADERSHIP OF SVERDLOVSK NOW YEKATERINBURG WAS SEEN TO BE GAINING STRENGTH SO THE PREMIER HAD ADDED INCENTIVE TO BRING IN A CHANGE MR CHERNOMYRDIN HAS CLAIMED CREDIT FOR PROPOSING THAT MR GAIDAR RETURN AT THE SAME TIME ACCORDING TO A RECENT POLL MR YELTSIN HAD SLIPPED IN POPULARITY BEHIND ANOTHER REFORMMINDED ECONOMIST GRIGORY YAVLINSKY SO HE HAD ADDED REASONS TO FAVOR STRENGTHENING THE REFORMIST CAMP IN THE GOVERNMENT THE RETURN OF MR GAIDAR AND THE REMOVAL OF MR LOBOV SHOULD HELP BRING MORE COHESION TO THE NATION'S ECONOMIC POLICY BUT IT WON'T ENTIRELY ELIMINATE FRICTION WHEN MR GAIDAR WAS FINANCE MINISTER AND ACTING PRIME MINISTER LAST YEAR HE FAILED TO BRING INTO THE TEAM BORIS FYODOROV WHO BECAME FINANCE MINISTER ONLY THIS YEAR SOME ANALYSTS HAVE SAID THAT WAS PARTLY BECAUSE OF RIVALRY BETWEEN THE TWO NOW SOME ADVISERS CLOSE TO MESSRS GAIDAR AND FYODOROV WORRY THAT THE TWO MEN HAVE MUCH PRIDE TO SWALLOW IN ORDER TO WORK WELL TOGETHER IN ADDITION WHEN MR GAIDAR WAS FIRED NEARLY A YEAR AGO IN AN ATTEMPT AT COMPROMISE WITH THE PARLIAMENT HE WAS SUCCEEDED BY MR CHERNOMYRDIN A FUNDAMENTALLY MORE CONSERVATIVE MAN WHO ROSE THROUGH THE RANKS OF SOVIET INDUSTRY NOW MR CHERNOMYRDIN SAYS HE EXPECTS NO PROBLEMS WORKING WITH MR GAIDAR BECAUSE THE YOUNGER ECONOMIST'S VIEWS CHANGED SIGNIFICANTLY DURING THIS YEAR IN TURN MR GAIDAR TOLD IZVESTIA AFTER HIS REAPPOINTMENT THAT DURING THE PAST MONTHS MR CHERNOMYRDIN HAD RADICALLY CHANGED HIS VIEWS AND BECOME A COMPLETELY DIFFERENT MAN 9309200107 930920 INTERNATIONAL WASHINGTON INSIGHT DEVELOPED NATIONS WANT POOR COUNTRIES TO SUCCEED ON TRADE BUT NOT TOO MUCH BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF THE US OPTS TO JUST SAY NO ON NAFTA IT WILL CAP A LONG HISTORY OF MIXED MESSAGES THE RICH INDUSTRIALIZED COUNTRIES HAVE DIRECTED TO THE DEVELOPING WORLD THE DOUBLESPEAK WHICH BY NO MEANS IS LIMITED TO THE DEBATE ON LIBERALIZING COMMERCE WITH MEXICO UNDER THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT BEGINS WITH A STERN CALL FOR DEVELOPINGWORLD GOVERNMENTS TO EMBRACE MARKET ECONOMICS BY PRIVATIZING INDUSTRIES LIMITING STATE SUBSIDIES AND LOWERING BARRIERS TO IMPORTS TO ADD A SPOONFUL OF SUGAR THERE ARE LOANS FOR BETTEROFF STATES AND DEVELOPMENT AID FOR THE POVERTYSTRICKEN BUT THEN COMES THE CATCH IF THE BUDDING CAPITALISTS BECOME TOO SUCCESSFUL THEY SLAM UP AGAINST QUOTAS TARIFFS AND OTHER TRADE BARRIERS THE INDUSTRIAL NATIONS MAINTAIN AGAINST THE DEVELOPING WORLD'S EXPORTS IT SEEMS THE INDUSTRIALIZED NATIONS WANT THEIR POORER COUNTERPARTS TO SUCCEED BUT NOT TOO MUCH SINCE THE 1960S TARIFFS HAVE DECLINED BUT OTHER BARRIERS SUCH AS QUOTAS AND VOLUNTARY EXPORT RESTRAINTS HAVE PROLIFERATED MORE THAN 20 OF THE DEVELOPING WORLD'S EXPORTS TO THE 24 INDUSTRIALIZED NATIONS IT'S ESTIMATED ARE NOW COVERED BY SOME SORT OF NONTARIFF BARRIER A WORLD BANK STUDY FOUND THAT 80 OF THE EXPORTS FROM BANGLADESH A COUNTRY WHOSE GROSS NATIONAL PRODUCT COMES TO 220 A PERSON ARE SUBJECT TO NONTARIFF BARRIERS AT THE SAME TIME BANGLADESH RECEIVES DEVELOPMENT ASSISTANCE MOSTLY FROM THE SAME COUNTRIES THAT MAINTAIN THE TRADE BARRIERS OF ABOUT 1 BILLION IT'S A CONTRADICTION SAYS RICHARD BERNAL JAMAICA'S AMBASSADOR TO THE US THEY PUT A BALL AND CHAIN ON YOU AND TELL YOU TO RUN FOR YEARS THE US AND THE WORLD BANK URGED JAMAICA TO MOVE ITS ECONOMY BEYOND A DEPENDENCY ON BAUXITE ALUMINUM SUGAR AND COFFEE EXPORTS WHICH ARE SUBJECT TO FLUCTUATIONS IN DEMAND AND PRICE JAMAICA RESPONDED BUILDING UP A HEALTHY APPARELMAKING INDUSTRY THE PROBLEM IS THAT JAMAICA'S APPAREL EXPORTS LIKE THOSE FROM OTHER DEVELOPING COUNTRIES ARE CURBED BY A TANGLE OF INTERNATIONAL AND BILATERAL LIMITS ORGANIZED UNDER WHAT'S CALLED THE MULTIFIBER ARRANGEMENT JAMAICAN APPAREL COMPANIES HAVE HAD TO TURN AWAY LARGE ORDERS FROM THE US LEST JAMAICA EXCEED ITS QUOTA NOT ONLY THE US SENDS MIXED MESSAGES THE EUROPEAN COMMUNITY HAS DOLED OUT BILLIONS IN AID TO ITS EASTERN NEIGHBORS WHILE SHARPLY LIMITING IMPORTS OF THE VERY GOODS IN WHICH THE POSTCOMMUNIST STATES ARE COMPETITIVEFARM PRODUCTS TEXTILES AND STEEL CURIOUSLY THE NORDIC COUNTRIES WHICH LEAD THE WORLD IN THE SHARE OF GROSS NATIONAL PRODUCT THEY GIVE IN AID TO DEVELOPING COUNTRIES ARE RELATIVELY CLOSED WHEN IT COMES TO IMPORTS FROM THE POOR CORNERS OF THE WORLD THE WORLD BANK SAYS THE US WHICH IMPORTS 23 OF ALL MANUFACTURED IMPORTS FROM THE DEVELOPING WORLD LOOKS COMPARATIVELY GOOD DESPITE STIFF BARRIERS ON CLOTHING AND SUGAR THE INDUSTRIALIZED NATIONS AREN'T ONLY SENDING MIXED MESSAGES THEY ARE WASTING MONEY IF PROTECTIONS WERE HALVED SAYS VINOD THOMAS THE WORLD BANK'S CHIEF ECONOMIST FOR ASIA THE RESULTING INCREASE IN EXPORTS FROM THE DEVELOPING WORLD WOULD EQUAL THE NET AID THOSE COUNTRIES CURRENTLY RECEIVE ABOUT 50 BILLION THERE IS ANOTHER GOOD REASON TO LET TRADE CARRY MORE OF THE BURDEN OF LIFTING DEVELOPING COUNTRIES OUT OF POVERTY AID BUDGETS IN THE US EUROPE AND JAPAN ARE UNDER SEVERE PRESSURE RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS ARE SEEKING STEADY INFUSIONS ASSUMING MIDEAST PEACE HANGS TOGETHER THE IMPOVERISHED PALESTINIANS WILL BE DUE A HEFTY AID PACKAGE THE ARISTIDE GOVERNMENT IN HAITI IF IT ACTUALLY TAKES OFFICE WILL REQUIRE ECONOMIC PROPS MEANWHILE THE WILLINGNESS TO FOOT THE BILLS IS DIMINISHING EASING TRADE BARRIERS WOULD NOT ONLY COST TAXPAYERS IN THE INDUSTRIALIZED WORLD LESS THAN AID BUT WOULD ALSO PROMOTE MORE LASTING ECONOMIC GROWTH AID MONEY TENDS TO SUPPORT ONETIME USES WHEREAS TRADE CAN HELP BUILD SUSTAINABLE INDUSTRIES THE PROBLEM AND THE BIG REASON FOR THE CONTRADICTORY POLICIES IS THAT AID AND TRADE ARE MANAGED IN DIFFERENT SHOPS IN THE US THE STATE DEPARTMENT WATCHES OVER AID PROGRAMS IT IS DRIVEN BY A BLEND OF POLITICAL STRATEGIC AND HUMANITARIAN CONCERNS BUT THE US TRADE REPRESENTATIVE THE COMMERCE DEPARTMENT AND CONGRESS DEAL WITH TRADE THEY RESPOND MORE OFTEN TO DOMESTIC ECONOMIC CONCERNS FOREIGNPOLICY CONSIDERATIONS PARTICULARLY WHEN SAY THE TEXTILE LOBBY IS CHAFING FOR PROTECTIONS DON'T FIGURE SIMILARLY THE WORLD BANK AND INTERNATIONAL MONETARY FUND ARE SUPPOSED TO ALLEVIATE POVERTY AND RESTRUCTURE DILAPIDATED ECONOMIES BUT THEY DON'T GET DIRECTLY INVOLVED IN TRADE ONE IMF SPECIALIST WORKING IN THE FORMER EAST BLOC FRETS THAT THE FUND CAN'T EASE TWO OF THE MOST DAMAGING CONDITIONS AFFLICTING THE POSTCOMMUNIST ECONOMIES THE COLLAPSE OF THE SOVIETDOMINATED TRADING BLOC AND THE LACK OF ACCESS TO WESTERN EUROPEAN MARKETS IF THE INDUSTRIALIZED COUNTRIES WANT THE DEVELOPING WORLD TO GROW RICH ENOUGH TO BUY MORE OF OUR GOODS WE WILL HAVE TO EXTEND TRADE OPPORTUNITIES AS WELL AS AID THE US HELPED MEXICO OUT OF ITS DEBT CRISIS AND SUPPORTED THE 18 BILLION IN GRANTS AND LOANS THAT MEXICO NETTED LAST YEAR WITH NAFTA IT'S TIME TO HONOR THE TRADE PART OF THE BARGAIN 9309200106 930920 WORLD MARKETS THOUGH TREADING LIGHTLY BULLS ARE RETURNING TO EUROPE IN ANTICIPATION OF INTEREST RATE CUTS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON HAVING RESTED THE PAST THREE WEEKS EUROPEAN EQUITY MARKET BULLS ARE OUT OF THEIR CORRALS AGAIN BUT THIS TIME THEY'RE MOVING MORE CAREFULLY IT'S NOT JUST BECAUSE THE PAST DECADE HAS PROVED THAT OCTOBER CAN BE A DANGEROUS MONTH FOR STOCK MARKETS BUT PRICES THIS YEAR ARE NEARLY TOPPING THE BEST OVERALL GAINS IN RECENT MEMORY EUROPEAN INDEXES ARE UP ABOUT 24 ON AVERAGE IN LOCAL CURRENCY TERMS EVEN AFTER THE CORRECTION SINCE EARLY SEPTEMBER WHICH SLICED PRICES ABOUT 5 STILL STRATEGISTS ARE BETTING THE NEWLY FLEXIBLE EUROPEAN EXCHANGE RATE MECHANISM TRULY HAS OPENED THE WAY FOR DEEP INTEREST RATE CUTS SOONER OR LATER MARKETS WILL CONTINUE TO BE NERVOUS AS THEY WAIT FOR THE RATE REDUCTIONS SAYS ANDREW BELL A STRATEGIST AT BARCLAYS DE ZOETE WEDD IN LONDON EQUITY INVESTING IS NOT GOING TO BE PAIN OR RISKFREE BUT THE DIRECTION IS DEFINITELY UP MR BELL THINKS MOST EUROPEAN MARKETS SHOULD ADD ANOTHER 20 IN VALUE DURING THE NEXT 12 TO 15 MONTHS ALTHOUGH THE GAINS WILL BE LOWER IN US DOLLAR TERMS IF THE DOLLAR STRENGTHENS AS MANY EXPECT OTHER STRATEGISTS HAVE BEEN RAISING THE ALLOCATIONS DEDICATED TO EUROPEAN EQUITIES IN THEIR PORTFOLIOS MIKE YOUNG AT MERRILL LYNCH INTERNATIONAL RECOMMENDS FRENCH FINANCIAL STOCKS SUCH AS SOCIETE GENERALE AND INDEBTED INDUSTRIAL GROUPS THAT SHOULD RESPOND WELL TO LOWER INTEREST RATES SUCH AS MICHELIN AND RHONEPOULENC MR YOUNG ALSO LIKES THE SPANISH EQUITY MARKET WHICH IS ALREADY UP A WHOPPING 32 THIS YEAR THE SEVERITY OF THE RECESSION SHOULD FORCE THE GOVERNMENT TO RESPOND BY LOWERING INTEREST RATES HE SAYS ADDING THAT CONCERNS ABOUT INFLATION AND THE BUDGET DEFICIT ARE OVERDONE AS WITH FRANCE MERRILL LYNCH FAVORS INTEREST RATESENSITIVE STOCKS IN SPAIN SUCH AS BANCO SANTANDER BANKINTER AND REPSOL RICHARD DAVIDSON AT MORGAN STANLEY INTERNATIONAL LAST WEEK RAISED THE WEIGHTING OF SHARES IN THE BANK'S EUROPEAN MODEL PORTFOLIO TO 67 FROM 64 HE IS ESPECIALLY KEEN ON CYCLICAL AND RECOVERY STOCKS THOSE GROUPS THAT SHOULD BENEFIT FROM AN UPTURN IN GROWTH AND ARE CHEAP BY CERTAIN VALUATION MEASURES OR THOSE THAT HAVE BEEN RESTRUCTURING RECENTLY IN PARTICULAR MORGAN STANLEY LIKES FINNISH AND ITALIAN PAPER COMPANIES AND BUILDING MATERIAL GROUPS IN BRITAIN AND ITALY MANY WOULDBE BEARS ARE HELPLESS IN THE FACE OF THE PERSISTENT OPTIMISM THAT HAS FUNDS FLOWING STEADILY OUT OF FIXEDINCOME INVESTMENTS INTO SHARES THERE ISN'T MUCH TO GET EXCITED ABOUT REGARDING ECONOMIC GROWTH THIS YEAR OR NEXT SAYS KIRIT SHAH HEAD OF MARKET STRATEGY AT SUMITOMO FINANCE INTERNATIONAL IN LONDON BUT MONEY HAS TO GO SOMEWHERE AND THE LIKELY PLACE IS GOING TO BE EQUITY MARKETS THERE ARE A HANDFUL OF EQUITY EXPERTS WHO THINK TOUGH TIMES ARE NEARING BUT THEY ARE FEW AND FAR BETWEEN AND THEY SPEAK OF CONSOLIDATIONS AND CORRECTIONS RATHER THAN CRASHES NICHOLAS KNIGHT GLOBAL STRATEGIST AT NOMURA RESEARCH INSTITUTE EUROPE PREDICTS THAT THE OCTOBER BLUES ARE COMING EARLY AND THAT EXTREME CARE IS REQUIRED MR KNIGHT SAYS THE MARKET'S PREOCCUPATION DURING THE NEXT 18 MONTHS IS LIKELY TO BE ABOUT GROWTH WITH LOW INFLATION BUT RISING INFLATIONARY EXPECTATIONS THE REQUIRED STRATEGY IS TO SELL BONDS AND BUY CASH AND OR GOLD AND HOLD EQUITIES HE SAYS THE SUGGESTED TACTICS ARE TO SELL EQUITIES AS WELL RECOMMITTING LIQUIDITY TO EQUITY MARKETS WHEN THEY REACH LOWER LEVELS GORDON ANDERSON RESEARCH DIRECTOR AT DUNEDIN FUND MANAGERS IN EDINBURGH SCOTLAND SAYS HIS FIRM REMAINS POSITIVE ABOUT EUROPEAN EQUITIES ON A 12MONTH VIEW BUT DOESN'T BELIEVE THE NEXT FEW MONTHS LOOK PROMISING WE'RE SEEING DISAPPOINTING SIGNS ON ECONOMIC GROWTH AND SOME DISAPPOINTING NEWS ON INFLATION HE SAYS THAT POSES RISKS FOR EQUITY MARKETS BECAUSE THEY'VE BEEN LARGELY DRIVEN BY EXPECTATIONS OF GOOD NEWS IN THOSE AREAS THE TOKYO STOCK MARKET REGISTERED ITS THIRD STRAIGHT DECLINE FRIDAY AS INVESTORS RETREATED TO THE SIDELINES FOLLOWING THURSDAY'S PLUNGE LONDON STOCKS GAINED SLIGHTLY IN NERVOUS TRADING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11204 DOWN 028 REFLECTING DROPS IN AMERICAN EUROPEAN AND ASIA/PACIFIC MARKETS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16478 UP 220 OR 135 WITH PARAMOUNT COMMUNICATIONS OF THE US POSTING A 560 GAIN IN ITS LOCAL CURRENCY OILFIELD EQUIPMENT STOCKS TRAILED AT 11002 DOWN 303 OR 268 WITH MCDERMOTT INTERNATIONAL OF THE US SLIDING 517 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 44564 POINTS THURSDAY FELL 11111 POINTS TO 2039104 ON MONDAY THE NIKKEI ROSE 460 POINTS TO CLOSE THE MORNING SESSION AT 2039564 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES UP FROM 25990 MILLION SHARES THURSDAY LOSERS OUTNUMBERED WINNERS 674296 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH LOST 2324 POINTS THURSDAY SHED 575 TO 165134 FRIDAY'S DROP WAS PARTLY DUE TO DISAPPOINTMENT WITH PREVIEWS OF THE 615 TRILLION YEN 5857 BILLION STIMULUS PACKAGE THE GOVERNMENT ANNOUNCED LATE THURSDAY INVESTORS MOVED TO DIGEST THE DETAILS OF THE PLAN FRIDAY SHOWING LITTLE EAGERNESS TO EITHER BUY OR SELL IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX EDGED UP 16 TO 30055 THE FT 30 INDEX SLIPPED 02 TO 23310 FRIDAY'S VOLUME TOTALED 7610 MILLION SHARES COMPARED WITH 6686 MILLION THE PREVIOUS DAY INVESTORS WERE RETHINKING STRATEGIES AFTER A WEEK OF MIXED NEWS COMPANY RESULTS WERE LARGELY IN LINE WITH EXPECTATIONS BUT SOME COMMENTS BY EXECUTIVES WERE DISTURBING IN THEIR CAUTIOUSNESS SEVERAL COMPANIES SAID RECESSION IN EUROPE WAS CONTINUING TO HURT THEIR PROFITS AND THEY WEREN'T SEEING SIGNS OF IMPROVEMENT THE FRANKFURT MARKET FIRMED ALONG WITH THE DOLLAR THE DAX STOCK INDEX OF BLUECHIPS ROSE 2632 POINTS OR 14 TO 188199 THE GAINS WERE LED BY DAIMLERBENZ WHICH REPORTED FIRSTHALF RESULTS THAT WERE IN LINE WITH EXPECTATIONS AND DEUTSCHE BANK WHICH SAID IT'S CONSIDERING OFFERING DAIMLER SHARES FROM ITS 282 STAKE TO US INVESTORS FOLLOWING DAIMLER'S OCT 5 LISTING ON THE NEW YORK STOCK EXCHANGE MOST OTHER EUROPEAN MARKETS GAINED FRIDAY SUPPORTED BY THE EXPIRATION OF FUTURES CONTRACTS INTERESTRATE NEWS AND A FIRMER DOLLAR ASIAN AND PACIFIC MARKETS FINISHED HIGHER IN TAIPEI STOCKS SOARED 47 IN HECTIC TRADING IN RESPONSE TO THE TAIWAN CENTRAL BANK'S MAJOR CUTS IN THE RESERVE REQUIREMENTS OF COMMERCIAL BANKS IN MANILA STOCKS SURGED 1 TO A RECORD HIGH HELPED BY THE SELECTIVE BUYING OF BLUECHIP STOCKS INCLUDING INDEX HEAVYWEIGHTS PHILIPPINE LONG DISTANCE TELEPHONE AND AYALA 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 9309200105 930920 WHO'S NEWS COLEMAN CO PICKS BLACK & DECKER OFFICER TO SUCCEED CHAIRMAN WICHITA KAN COLEMAN CO NAMED MICHAEL HAMMES TO THE NEW POST OF VICE CHAIRMAN EFFECTIVE OCT 1 AND SAID THE BLACK & DECKER CORP EXECUTIVE WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE JAN 1 WHEN CURRENT CEO LAWRENCE M JONES RETIRES IN REACHING OUTSIDE FOR A SUCCESSOR TO MR JONES COLEMAN PASSED OVER PRESIDENT AND CHIEF OPERATING OFFICER ROBERT L RING 49 YEARS OLD WHO HAS BEEN WITH THE MAKER OF CAMPING AND RECREATIONAL EQUIPMENT FOR MORE THAN 26 YEARS ONE ANALYST SAID COLEMAN A UNIT OF INVESTOR RONALD PERELMAN'S MACANDREWS & FORBES HOLDINGS INC SAW AN OPPORTUNITY TO GRAB AN EXPERIENCED CONSUMER PRODUCTS EXECUTIVE WITH ACQUISITION EXPERTISE MR HAMMES 51 CURRENTLY VICE CHAIRMAN OF BLACK & DECKER APPARENTLY WANTED TO RUN A COMPANY BUT WAS BLOCKED BY NOLAN D ARCHIBALD THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE BLACK & DECKER HAS DONE EXTREMELY WELL ACQUIRING LINES THAT ARE NOT DOING WELL CLEANING THEM UP AND PUTTING THE BLACK & DECKER NAME ON THEM SAID MATTHEW PATSKY AN ANALYST WITH ROBERTSON STEPHENS & CO THAT MAKES SENSE FOR COLEMAN HE SHOULD BE WELLVERSED ON WHAT COLEMAN NEEDS TO DO FOR THE NEXT 10 YEARS BECAUSE HE'S JUST BEEN THROUGH IT AT BLACK & DECKER AT COLEMAN MR JONES 62 HAD EARLIER INDICATED HE PLANNED TO RETIRE SOMETIME BEFORE HE REACHED AGE 65 THE COMPANY SAID HE WILL REMAIN A DIRECTOR MR RING WHO WILL REMAIN IN HIS CURRENT POSITION WAS UNAVAILABLE FOR COMMENT A COMPANY SPOKESMAN SAID HE HAD INDICATED HE WAS LOOKING FORWARD TO WORKING WITH MR HAMMES 9309200104 930920 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED FNET DILUTION FROM RIGHTS OFFERING VCON VERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE 9309200103 930920 IT'S UN PROTOCOL SIX CHAIRS NO OFFICE FOR TAJIKISTAN'S MAN SQUEEZING IN NEW DIGNITARIES CAUSES HOST OF INDIGNITIES MY COUNTRY 'TIS OF THE' BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL UNITED NATIONS LAKIM KAYUMOV AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY FOR TAJIKISTAN IS THE ONEMAN UN DELEGATION FOR THIS NEW CENTRAL ASIAN REPUBLIC IN FACT HE IS HIS COUNTRY'S ENTIRE DIPLOMATIC CORPS WE CAN'T AFFORD AMBASSADORS IN EUROPE IN WASHINGTON SAYS MR KAYUMOV HE CHUCKLES WAVING AN ARM AROUND THE LOBBY OF THE MANHATTAN OFFICE BLOCK THAT ONCE HOUSED THE UN'S VAST SOVIET DELEGATION SO THERE IS JUST ME HERE A BIG MAN MR KAYUMOV RECEIVES HIS GUESTS IN THE LOBBY BECAUSE THERE IS NOWHERE FOR VISITORS TO SIT IN THE OFFICE HE SHARES WITH COLLEAGUES FROM OTHER FORMER SOVIET REPUBLICS KYRGYZSTAN KAZAKHSTAN TURKMENISTAN AND BELARUS BUT MR KAYUMOV WILL HAVE PLENTY OF ROOM WHEN HE TAKES HIS PLACE AT THE GENERAL ASSEMBLY WHICH STARTS ITS 1993 SESSION ON TUESDAY HE GETS SIX SEATS THE NUMBER UN PROTOCOL ALLOTS TO ALL MEMBER NATIONS WHETHER THEIR DELEGATIONS ARE 100MEMBER THREEAMBASSADOR MISSIONS LIKE THE US'S OR LEAN ONEWOMAN BANDS SUCH AS LIECHTENSTEIN'S LIKE MOST NEW NATIONSTATES TAJIKISTAN WAS IN THE UN ALMOST BEFORE IT WAS ON THE MAP BUT FINDING SPACE FOR SUCH NEWCOMERS IS BECOMING INCREASINGLY DIFFICULT AT THE WORLD'S BIGGEST BUREAUCRACY JUST 51 NATIONS FOUNDED THE UN IN SAN FRANCISCO IN 1945 NOW THERE ARE 184 TO SQUEEZE THEM IN UN CARPENTERS HAVE RECONFIGURED THE GENERAL ASSEMBLY SEVERAL TIMES SINCE ITS 1952 OPENING ADDING ROWS OF CHAIRS IN FRONT AND PARING SPACE FROM THE ONCEGENEROUS PUBLIC GALLERY AT THE REAR IT'S ARCHITECTURAL TORTURE LAMENTS IGOR NOVICHENKO THE UN'S ASSISTANT CHIEF OF PROTOCOL WHO PREFERRED THE COOL SPACIOUSNESS THAT PREVAILED BEFORE THE HALL'S SCANDINAVIANSTYLE DESIGN BECAME SO CLUTTERED MR NOVICHENKO'S DEPARTMENT HAS HAD TO ACCOMMODATE 17 NEW ARRIVALS IN THE PAST 18 MONTHS IT WAS LIKE A WATERFALL SAYS THE UKRAINIANBORN OFFICIAL IT DIDN'T STOP MR NOVICHENKO'S JOB ISN'T MADE ANY EASIER BY THE CONSTANT ENCROACHMENT OF POLITICS ON PROTOCOL MACEDONIA THE UN'S THIRDNEWEST MEMBER GAINED ENTRY TO THE ASSEMBLY THIS YEAR ONLY AFTER RELUCTANTLY AGREEING TO BE CALLED THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA TO DIFFERENTIATE IT FROM THE MACEDONIAN REGION OF GREECE IT'S SILLY SAYS DENKO MALESKI THE REPUBLIC'S AMBASSADOR WONDERING IF PHONE CALLERS WILL EVEN FIND HIM WHO WILL KNOW HOW TO LOOK FOR THE NAME OF MACEDONIA UNDER F' FOR FORMER' EVEN IF CALLERS LOOK UNDER F THEY WON'T FIND HIM THE REPUBLIC IS LISTED IN UN PUBLICATIONS UNDER T FOR THE FORMER ON LEARNING THIS MR MALESKI SIGHS THAT HE SAYS IS EVEN MORE SILLY IT ALSO MEANS THAT MR MALESKI WILL SPEND THIS YEAR SITTING NEAR THE BACK OF THE GENERAL ASSEMBLY HALL WHO SITS WHERE IS ALWAYS A DELICATE MATTER IN INTERNATIONAL DIPLOMACY TO AVOID CHARGES OF FAVORITISM THE UN SECRETARY GENERAL CHOOSES BY LOT THE COUNTRY THAT GETS TO SIT IN FRONT WITH ALL OTHER MEMBERS ARRANGED IN ALPHABETICAL ORDER BEHIND THE WINNER THIS YEAR TURKMENISTAN'S NAME CAME OUT OF THE HAT THAT IS GOOD NEWS FOR UGANDA WHICH GETS THE SECONDBEST SEAT BUT IT IS BAD NEWS FOR THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA WHICH COMES 180TH FOLLOWED ONLY BY TOGO TRINIDAD TUNISIA AND TURKEY MR MALESKI'S BELEAGUERED STATE DOESN'T FARE ANY BETTER IN FRONT OF THE UN WHERE THE NATIONAL FLAGS OF MEMBER STATES FLUTTER IN ALPHABETICAL ORDER MACEDONIA IS THE ONLY STATE THAT ISN'T ALLOWED TO FLY ITS FLAG DUE ONCE AGAIN TO GREEK OBJECTIONS SOME SCHOLARS SAY THAT THE MACEDONIAN EMBLEM A 16RAY SUN APPEARED ON THE TOMB OF ALEXANDER THE GREAT THOUGH THIS IS DIFFICULT TO CONFIRM WHILE THE ANCIENT ATHENIANS DIDN'T EXACTLY ADORE THE MACEDONIAN GENERAL WHEN HE CONTROLLED THEIR CITY GOVERNMENT OFFICIALS IN MODERN ATHENS CLAIM ALEXANDER AND ANY EMBLEMS HE MIGHT POSSIBLY HAVE USED AS THEIR OWN OTHER YOUNG NATIONS AT LEAST GET TO USE THEIR OWN FLAGS AND NAMES EVEN IF NOT EVERYONE KNOWS WHO THEY ARE ERITREA HOW ARE YOU SPELLING THAT RESPONDS A UN OPERATOR WHEN ASKED FOR THE PHONE NUMBER OF THE UN'S SECONDNEWEST DELEGATION IN THE ERITREAN MISSION'S NEW OFFICE GHIRMAI GHEBREMARIAM IS HAVING PHONE PROBLEMS TOO JUST OFF THE PLANE FROM ERITREA MR GHEBREMARIAM WAS UNTIL RECENTLY A GUERRILLA FIGHTER IN HIS COUNTRY'S 30YEAR WAR OF INDEPENDENCE AGAINST ETHIOPIA CAMPED IN CAMOUFLAGED MOUNTAIN REDOUBTS THE ERITREAN FIGHTERS RELIED FOR COMMUNICATION ON RADIO TRANSMITTERS NOW MR GHEBREMARIAM HAS TO ASK A GUEST HOW TO DIRECTDIAL HIS COUNTRY'S NEW EMBASSY IN WASHINGTON HE WANTS HIS EMBASSY'S STAFF TO ORDER HIM SOME BUSINESS CARDS LOOKING FOR TIPS ABOUT WHAT SHOULD APPEAR ON THE CARDS HE FLIPS THROUGH A UN DIRECTORY AND CHECKS THE TITLES USED BY COUNTERPARTS FROM A NEIGHBORING COUNTRY HIS FORMER ENEMY ETHIOPIA ERITREANS WHO FOUGHT IN AN ARMY WITHOUT RANKS AND WHO CALLED EVEN THEIR LEADER BY HIS FIRST NAME ARE UNCOMFORTABLE WITH THE UN'S UBIQUITOUS TITLES AND PROTOCOL SO MR GHEBREMARIAM DECIDES HE CAN LIVE WITH THE MODEST TITLE OF COUNSELLOR RATHER THAN MORE HIGHBLOWN HONORIFICS SUCH AS MINISTER COUNSELLOR MR MALESKI THE MACEDONIAN AMBASSADOR ALSO IS LEARNING TO DO WITHOUT FANCY TRAPPINGS HIS FIRST PURCHASE UPON ARRIVING HERE WAS A BOOK CALLED HOW TO LIVE AND SURVIVE IN NEW YORK WE DON'T HAVE MOTORCADES WE WALK HE SAYS MAKING HIS WAY GINGERLY THROUGH THE DENSE NEW YORK TRAFFIC TO PRESENT HIS CREDENTIALS TO THE SECRETARYGENERAL NOT EVERYONE TRAVELS SO SIMPLY WHEN YASSER ARAFAT CAME HERE LAST WEEK FOR HIS OWN CHAT WITH THE SECRETARYGENERAL HE ARRIVED IN A POLICEESCORTED MOTORCADE MR ARAFAT'S RECENT HANDSHAKE WITH ISRAEL'S PRIME MINISTER YITZHAK RABIN MAY HASTEN THE DAY WHEN HIS LAND TOO COMES LOOKING FOR SIX SEATS IN THE GENERAL ASSEMBLY FOR THE MOMENT THE PROTOCOL OFFICIAL MR NOVICHENKO HAS OTHER HEADACHES SUCH AS THE TINY PACIFIC ISLANDS THAT MAY SOON SEEK UN MEMBERSHIP I'M SURE WE'LL HAVE A PLACE FOR TONGA AND KIRIBATI HE SAYS BUT IF WE HAVE ANOTHER 20 THE PROTOCOL OFFICIAL SHUDDERS IN ADDITION TO FINDING SEATS FOR NEW NATIONS MR NOVICHENKO AND HIS STAFF MUST DIVVY UP THE TASK OF ATTENDING NATIONALDAY RECEPTIONS MOST OF THE STAFF ALREADY ARE OBLIGED TO SIP AND SNACK THEIR WAY THROUGH 30 OR 40 SUCH FUNCTIONS BUT THERE IS ONE THEY DON'T YET HAVE TO WORRY ABOUT TAJIKISTAN'S NATIONAL DAY SEPT 9 PASSED ALMOST UNMARKED I CAN'T THROW A RECEPTION IT'S TOO MUCH FOR ME ALONE SAYS MR KAYUMOV THE ONEMAN DIPLOMATIC CORPS WISTFULLY HE ADDS I CELEBRATE WITH MY WIFE OVER A BOWL OF PILAF 9309200102 930920 BUSINESS BRIEF ILLINOIS POWER PLANS TO TAKE A WRITEOFF TOTALING 195 MILLION DECATUR ILL ILLINOIS POWER CO SAID IT WILL TAKE A 195 MILLION WRITEOFF IN THE THIRD QUARTER AS A RESULT OF A SEPT 10 DECISION BY A STATE APPEALS COURT CONCERNING A 1992 RATE CASE THE UTILITY ALSO SAID IT WILL HAVE TO REFUND ABOUT 85 MILLION TO ITS ELECTRIC CUSTOMERS AS A RESULT OF THE DECISION THE UTILITY'S RETAINED EARNINGS WERE 111 MILLION AS OF AUG 31 IN THE YEAREARLIER THIRD QUARTER THE COMPANY EARNED 657 MILLION OR 77 CENTS A SHARE ON REVENUE OF 3949 MILLION ON SEPT 10 THE THIRD DISTRICT ILLINOIS COURT OF APPEALS IN OTTAWA UPHELD KEY PARTS OF AN AUG 7 1992 ILLINOIS COMMERCE COMMISSION ORDER BARRING THE UTILITY FROM RECOVERING CERTAIN POSTCONSTRUCTION COSTS ASSOCIATED WITH ITS CLINTON POWER STATION IN ITS DECISION THE COURT REMANDED TO THE ICC CERTAIN ASPECTS OF THE AUG 7 1992 RATE ORDER FOR FURTHER ANALYSIS AMONG THE ISSUES IS A DETERMINATION OF ACTUAL FINANCIAL HARM TO ILLINOIS POWER CAUSED BY A 23MONTH REGULATORY LAG BETWEEN THE TIME THE CLINTON STATION BEGAN OPERATING IN 1987 AND THE COMMISSION'S 1989 RATE ORDER THAT ALLOWED ILLINOIS POWER TO BEGIN RECOVERING COSTS ILLINOIS POWER SAID THE NONCASH WRITEOFF CONSTITUTES A REDUCTION OF SHAREHOLDER EQUITY IN ILLINOIS POWER IT WON'T AFFECT STOCK DIVIDENDS THAT HAVE BEEN PREDECLARED THROUGH THE SECOND QUARTER OF 1994 THE COMPANY SAID THE ICC AUTHORIZED PAYMENTS OF THOSE DIVIDENDS IN THE EVENT OF NEGATIVE RETAINED EARNINGS PROVIDED CERTAIN FINANCIAL TESTS ARE MET THE WRITEOFF WON'T AFFECT THE COMPANY'S ABILITY TO MEET THOSE TESTS BUT ILLINOIS POWER SAID ITS EFFECT ON DIVIDENDS BEYOND THE 1994 SECOND QUARTER IS UNCERTAIN ILLINOIS POWER SAID IT IS CONSIDERING ITS OPTIONS FOR FURTHER REVIEWS OR APPEALS OF THE APPELLATE COURT DECISION 9309200101 930920 WHO'S NEWS ICF KAISER INTERNATIONAL INC ICF KAISER INTERNATIONAL INC FAIRFAX VA FORMER LOS ANGELES MAYOR TOM BRADLEY 75 YEARS OLD WAS ELECTED TO THE BOARD OF THIS ENGINEERING AND CONTRUCTION SERVICES COMPANY INCREASING THE BOARD TO EIGHT MEMBERS IN ADDITION DAVID ZIMOMRA 38 JOINED ICF SUBSIDIARY ICF KAISER ENGINEERS AS A VICE PRESIDENT HE HAD BEEN SALES AND MARKETING VICE PRESIDENT AT VERSAR INC SPRINGFIELD VA 9309200100 930920 LETTERS TO THE EDITOR ACCOUNTING FIRMS RISK TARNISHING THEIR IMAGE IN RECENT YEARS WE IN BUSINESS ACADEMIA HAVE BEEN CHARGED WITH TEACHING OUR STUDENTS BUSINESS ETHICS I HAVE ALWAYS HAD SERIOUS RESERVATIONS ABOUT OUR ABILITY TO ACCOMPLISH SUCH A TASK PARTICULARLY SINCE WE FIRST ENCOUNTER THESE STUDENTS AS 20 YEAR OLD ADULTS YOUR PAGE ONE ARTICLE ABOUT ACCOUNTANTS AS LITIGATION SUPPORT MAKES ME WONDER WHAT REINFORCEMENT WE MAY EXPECT FROM THE BIG SIX ACCOUNTING FIRMS ACCOUNTANTS ASSAIL MALPRACTICE SUITS WHILE ASSISTING THEM AUG 12 I FOUND DISTURBING THE PRICE WATERHOUSE CONTRADICTORY POSITION ON THE ROLE OF AN AUDITOR AND THE PURPOSE OF THE AUDIT OPINION THE POSITION APPARENTLY VARYING WHEN PRICE WATERHOUSE WAS THE DEFENDANT OR THE EXPERT WITNESS FOR THE PROSECUTION EQUALLY DISTURBING WAS THE STATEMENT MADE BY THE ARTHUR ANDERSEN EMPLOYEE THAT PEOPLE WHO ARE IN PAIN PAY MORE THAN THEY PAY FOR COMMODITY SERVICE IS THIS KICK THEM WHEN THEY'RE DOWN PHILOSOPHY VERY ETHICAL FINALLY THE RELUCTANCE OF THE BIG SIX FIRMS TO TESTIFY AGAINST ONE ANOTHER AND APPARENT EAGERNESS TO TESTIFY AGAINST SMALLER FIRMS MAY BE GOOD BUSINESS BUT THE PRACTICE DOES LITTLE TO POLISH WHAT IS ALREADY THE SADLY TARNISHED IMAGE THE ACCOUNTING PROFESSION HAS AMONG THE PUBLIC A LARGER ISSUE THAN THE ONE YOU REPORTED ON THE ROLE OF ACCOUNTING FIRMS IN LITIGATION SUPPORT NEEDS TO BE REPORTED THE REPUTATION OF ACCOUNTING FIRMS WILL BE DIMINISHED BY THE BLURRING OF THEIR TRADITIONAL ROLES DEPENDING ON WHETHER THEY ARE ON THE OFFENSE OR THE DEFENSE WHO CANNOT QUESTION THE PROFESSIONALISM OF ACCOUNTING FIRMS WHEN THEY TAKE NOT TWO BUT THREE SIDES ON ANY QUESTION AS YOUR ARTICLE REPORTS THE ACCOUNTANT AS HIRED GUN CONJURES UP UNWHOLESOME IMAGES OUR MARKETS AND OUR ENTERPRISES DEPEND ON ACCURATE AND BELIEVABLE FINANCIAL DATA PROVIDED BY RESPECTED PROFESSIONALS I SHUDDER TO PROJECT THE FUTURE OF AN ECONOMY IN WHICH ALL THIS IS LOST AS THE BIG SIX TAKE BOTH SIDES OF ANY ISSUE THEIR MOST PRECIOUS ASSET IN THE EYES OF THE BUSINESS PERSON THEIR INDEPENDENCE AND DISINTERESTEDNESS ONCE TERMED PROFESSIONALISM IS SERIOUSLY DEVALUED SELFSERVING LITIGATION UNDERMINES CLAIMS OF INDEPENDENCE AS ACCOUNTING FIRMS INCREASINGLY ACT AND LOOK LIKE LAWYERS WITH OPINIONS FOR SALE AND NO ACCOUNTABILITY FOR THE QUALITY OF THEIR WORK THEY WILL INCREASINGLY BE HELD IN THE SAME REGARD 9309200098 930920 FOREIGN EXCHANGE TRADERS SAY DOLLAR MAY BE READY TO TEST RECORD LOWS AGAINST THE YEN BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER A RANGEBOUND MONTH THE DOLLAR LOOKS READY TO TEST ITS HISTORIC LOWS AGAINST THE YEN TRADERS AND ANALYSTS SAY CURRENCY PLAYERS WILL LIKELY DRIVE THE DOLLAR LOWER UNTIL THEY SEE CONVINCING EVIDENCE THAT THE US GOVERNMENT DOESN'T FAVOR A STRONGER YEN AS A WEAPON AGAINST JAPAN'S HUGE TRADE SURPLUS BUT DEALERS ARE CAUTIOUS A SHARP DROP IN THE DOLLAR MIGHT PROMPT THE FEDERAL RESERVE BANK OF NEW YORK TO INTERVENE MANY DEALERS SAY IN MIDAUGUST THE FED STOPPED A YEN RALLY IN ITS TRACKS BUYING ENOUGH DOLLARS TO LIFT THE US CURRENCY FOUR YEN IN ONE DAY IF THERE'S A POINT WHERE THE MARKET THINKS THE FED IS NOT IN A HURRY TO INTERVENE THEY WILL BE AGGRESSIVE IN SELLING DOLLARS SAYS MICHAEL FAUST WHO MANAGES CURRENCY RISK FOR BAILARD BIEHL & KAISER A SAN MATEO CALIF INVESTMENT MANAGEMENT FIRM MARKET PLAYERS WILL TAKE THEIR CLUES FROM COMMENTS BY US OFFICIALS ABOUT JAPAN'S EFFORTS TO STIMULATE ITS ECONOMY ANY STATEMENT MAKES THE DOLLAR EXPLOSIVE SAYS DOMINIQUE LECA CURRENCY OPTIONS MANAGER AT PARIBAS CAPITAL MARKETS GROUP LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 10445 YEN UP FROM 10415 YEN THURSDAY THE DOLLAR ALSO TRADED AT 16146 MARKS UP FROM 16025 MARKS ABOUT MIDDAY ON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10445 YEN AND AT 16145 MARKS AN ACCURATE READING OF THE US REACTION TO JAPAN'S LATEST ATTEMPT AT ECONOMIC STIMULUS MAY HAVE TO WAIT UNTIL THIS WEEK'S MEETING BETWEEN PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA SAYS ERIC NICKERSON FOREIGN EXCHANGE ADVISER AT BANK OF AMERICA THE MARKET'S GOING TO BE A LITTLE CAUTIOUS TO PUSH THE YEN TOO FAR IN ANY DIRECTION UNTIL IT'S CLEAR WHAT THE US REACTION IS HE SAYS AND THAT WON'T BE CLEAR UNTIL THE BEGINNING OF THE FOLLOWING WEEK AFTER THE HOSOKAWACLINTON MEETINGS MEANWHILE CURRENCY PLAYERS WILL FOLLOW MR HOSOKAWA'S SCHEDULED ADDRESS TO JAPAN'S PARLIAMENT TOMORROW AND THIS WEEK'S MEETING OF THE GROUP OF SEVEN LEADING INDUSTRIAL NATIONS BOTH OF WHICH MIGHT ALSO PROVIDE GRIST FOR THE CURRENCY MILL THE DOLLAR WILL BE PARTICULARLY NEWSSENSITIVE IN THE COMING SESSIONS BECAUSE IT HAS BEEN TRAPPED IN A RANGE FOR SO LONG TRADERS SAY SINCE THE FED INTERVENED IN AUGUST THE DOLLAR HAS TRADED BETWEEN 103 AND 107 YEN PEOPLE HAVE BEEN LULLED INTO A FALSE SENSE OF SECURITY THAT THE YEN IS NEVER GOING TO MOVE SAYS JERRY CORNILLE MARKETING DIRECTOR FOR CM&M FUTURES INC IN CHICAGO A SUBSIDIARY OF CARROLL MCENTEE & MCGINLEY INC WHAT WE'VE DONE IS SET OURSELVES UP FOR A BIG MOVE WHEN WE DO BLAST THROUGH THESE RANGES SOME ANALYSTS DOUBT THAT DOLLARSELLERS WILL SUCCEED IN BREAKING THROUGH THE RECORD LOWS ALTHOUGH JAPAN'S ECONOMIC PACKAGE TAKES NO RADICAL MEASURES TO SPUR THE ECONOMY OR OPEN THE DOOR TO IMPORTS IT LAYS THE GROUNDWORK FOR FURTHER REFORMS SAYS MICHAEL MALPEDE SENIOR CURRENCY ANALYST AT REFCO INC IN CHICAGO THAT SHOULD SATISFY US OFFICIALS HE SAYS AND KEEP PRESSURE OFF THE DOLLAR THEY'RE NOT GOING TO CHANGE THEIR WHOLE ECONOMY OVERNIGHT AND PEOPLE IN THE US HAVE TO UNDERSTAND THAT HE SAYS ADDING THAT YEN RALLIES WILL BE MET WITH STIFF RESISTANCE 9309200097 930920 CHINA TRADE DEFICIT WIDENS BEIJING CHINA'S TRADE DEFICIT FOR THE YEAR WIDENED TO 573 BILLION THROUGH AUGUST WITH IMPORTS CONTINUING TO GROW MUCH FASTER THAN EXPORTS THE GOVERNMENT SAID CUSTOMS FIGURES SHOWED IMPORTS FROM JANUARY THROUGH AUGUST TOTALED 5814 BILLION UP 27 FROM THE YEAREARLIER PERIOD WHILE EXPORTS TOTALED 524 BILLION UP 4 DESPITE GOVERNMENT ORDERS IN JUNE FOR A HALT ON IMPORTS OF CARS AND OTHER EXPENSIVE ITEMS BY GOVERNMENT DEPARTMENTS CHINA APPEARS HEADED FOR ITS FIRST ANNUAL TRADE DEFICIT IN FOUR YEARS OFFICIALS HAVE CITED THE HECTIC GROWTH OF CHINA'S DOMESTIC ECONOMY FOR THE DEFICIT THE GROWTH CREATED A HUGE DEMAND FOR IMPORTED STEEL OIL CONSTRUCTION MATERIALS AND LUXURY GOODS 9309200096 930920 ALLIEDSIGNAL TENNECO DISPUTE NEWSLETTER'S ACCOUNTING ESTIMATES NEW YORK ALLIEDSIGNAL INC AND TENNECO INC DISAGREED WITH AN ACCOUNTING NEWSLETTER'S ESTIMATE THAT AN ACCOUNTING RULE ON DEFERRED TAXES MIGHT SHARPLY REDUCE THEIR THIRDQUARTER PROFITS FROM PREVIOUS ESTIMATES BY FINANCIAL ANALYSTS ALLIEDSIGNAL MORRIS TOWNSHIP NJ SAID IT EXPECTS THE IMPACT OF THE RULE TO BE NEUTRAL TO SLIGHTLY POSITIVE FOR ITS THIRD QUARTER AND ALL OF 1993 THE COMPANY SAID IT CONTINUES TO ESTIMATE 1993 PROFIT AT FROM 450 TO 475 A SHARE FOR 1992 ALLIEDSIGNAL WHICH MANUFACTURES PRODUCTS FOR AVIATION MARKETS REPORTED OPERATING PROFIT AT 415 MILLION OR 380 A SHARE AFTER THE IMPACT OF TWO ACCOUNTING RULES ON RETIREES' MEDICAL BENEFITS AND DEFERRED TAXES THE COMPANY REPORTED A LOSS OF 712 MILLION FOR 1992 AN ALLIEDSIGNAL SPOKESMAN SAID THE EFFECT OF THE ACCOUNTING RULE WOULD BE OFFSET BY DEFERREDTAX ASSETS OF 117 MILLION NOTED IN THE COMPANY'S 1992 ANNUAL REPORT TENNECO A HOUSTONBASED NATURAL GAS CONCERN SAID A CONSENSUS OF ANALYSTS' ESTIMATES FOR ITS THIRD QUARTER OF 45 CENTS A SHARE ARE IN LINE WITH COMPANY EXPECTATIONS DESPITE THE EFFECT OF NEW ACCOUNTING RULES RELATED TO CORPORATE TAX RATES IN THE THIRD QUARTER OF 1992 TENNECO REPORTED PROFIT OF 46 MILLION OR 28 CENTS A SHARE A TENNECO SPOKESMAN SAID THE ACCOUNTING RULE'S EFFECTS WOULD BE MITIGATED BY OTHER UNSPECIFIED FACTORS BUT WOULDN'T COMMENT ON THE EFFECT OF THE RULE IN AN ARTICLE IN LAST FRIDAY'S WALL STREET JOURNAL JACK CIESIELSKY PUBLISHER OF RG ASSOCIATES' ACCOUNTING OBSERVER NEWSLETTER SAID THAT IN WORSTCASE SCENARIOS THE ACCOUNTING RULE COULD RESULT IN DECLINES OF THIRDQUARTER PROFIT FROM ANALYSTS' PREVIOUS ESTIMATES OF 111 FOR ALLIEDSIGNAL AND 489 FOR TENNECO REACHED OVER THE WEEKEND MR CIESIELSKY SAID HE BASED HIS ESTIMATES ON DISCLOSURES IN COMPANY FINANCIAL REPORTS AVAILABLE AT THE END OF THE FISCAL SECOND QUARTER AND DIDN'T MAKE ALLOWANCES FOR TRANSACTIONS IN THE THIRD QUARTER THAT COULD HAVE AFFECTED THE ESTIMATES 9309200095 930920 UNCERTAINTY BREEDING BARGAINS IN CANADA ELECTION FEARS ARE AFFECTING CURRENCY SHORTTERM DEBT BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH CANADA'S DOLLAR NEAR SIXYEAR LOWS AND LIKELY TO KEEP SLIDING AHEAD OF OCTOBER'S NATIONAL ELECTION INVESTORS CAN PICK UP CANADIAN CURRENCY AND SHORTTERM DEBT AT BARGAIN PRICES ANALYSTS SAY UNEXPECTEDLY STEEP RATE CUTS BY THE BANK OF CANADA HAVE WEIGHED ON CANADA'S CURRENCY THROUGHOUT THE SUMMER AND THIS MONTH THE DECLINE HAS BEEN COMPOUNDED BY FEARS THAT THE PROGRESSIVE CONSERVATIVE PARTY MIGHT LOSE POWER IN THE OCT 25 VOTE UNDERMINING CANADA'S COMMITMENT TO CUT ITS BUDGET DEFICIT WHICH THE GOVERNMENT TARGETS AT 326 BILLION CANADIAN DOLLARS US2483 BILLION OR 45 OF GROSS DOMESTIC PRODUCT FOR THE FISCAL YEAR THROUGH MARCH 1994 GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION BUT CANADA'S ALTERNATIVES ARE LIMITED NO MATTER WHICH PARTY WINS THE ELECTION WITH ANGRY TAXPAYERS ON ONE SIDE AND NERVOUS INTERNATIONAL INVESTORS ON THE OTHER OPPORTUNITIES FOR RAISING FUNDS ARE FEW THE OPPOSITION LIBERAL PARTY NOW ALSO PROMISES BUDGET CUTBACKS THOUGH A COALITION GOVERNMENT IS POSSIBLE IF SMALL PARTIES DO WELL IN THE VOTE ANY GOVERNMENT FAILING TO ADDRESS THE DEFICIT PROBABLY WOULD BE SHORTLIVED THE UPSHOT IS THAT CANADA'S INVESTMENT LANDSCAPE ISN'T LIKELY TO CHANGE VERY MUCH AFTER THE ELECTIONS WITH INFLATION LOW AND SHORTTERM RATES LIKELY TO DECLINE FURTHER AS THE BANK OF CANADA TRIES TO FUEL ECONOMIC RECOVERY THOSE CONDITIONS FAVOR CANADIAN BONDS THE MAIN REASON FOREIGN INVESTORS BUY CANADIAN CURRENCY THE US DOLLAR WAS TRADING AROUND C13133 LATE FRIDAY IN NEW YORK UP FROM C128 IN MIDJULY AND AROUND C125 A YEAR AGO THE CANADIAN DOLLAR IS RELATIVELY CHEAP ON A FUNDAMENTAL BASIS SAYS KARIM BASTA A VICE PRESIDENT FOR ECONOMICS AND FIXED INCOME RESEARCH AT MERRILL LYNCH & CO IN NEW YORK IF IT WEREN'T FOR THE ELECTION IT WOULD BE A LOT STRONGER THE ELECTION IS WHAT'S CREATED THE OPPORTUNITY CANADIAN YIELDS HAVE RISEN SLIGHTLY ON THE ELECTION UNCERTAINTY ESPECIALLY FOR SHORTTERM INSTRUMENTS BUT TRADERS SAY THERE MAY BE A REPEAT OF WHAT HAPPENED DURING THE OCTOBER 1992 NATIONAL REFERENDUM ON LIMITED AUTONOMY FOR QUEBEC NERVOUS MARKETS DROVE UP BOND YIELDS AND DROVE DOWN THE CANADIAN DOLLAR WITH THE BANK OF CANADA FORCED TO SUPPORT THE CURRENCY WITH REGULAR MARKET INTERVENTION BUT BONDS SNAPPED BACK AFTER THE QUEBEC PROPOSAL WAS REJECTED PROVIDING SUBSTANTIAL PROFIT FOR INVESTORS WITH STRONG STOMACHS THAT COULD HAPPEN AGAIN ANALYSTS SAY AND CANADA'S ECONOMY IS IN SLIGHTLY BETTER SHAPE THIS TIME CANADA'S 1993 GROWTH WHICH THE INTERNATIONAL MONETARY FUND FORECASTS AT 32 SHOULD BE AMONG THE MOST IMPRESSIVE IN THE GROUP OF SEVEN INDUSTRIAL NATIONS INDUSTRIAL EXPORTS HAVE BEEN STRONG AND INFLATION IS RUNNING AT LESS THAN 2 ON AN ANNUALIZED BASIS BELOW US INFLATION IN A REVERSE OF HISTORICAL PRECEDENT LOW INFLATION MEANS REAL YIELDS ON CANADIAN INVESTMENTS THE ACTUAL YIELD MINUS INFLATION FAR OUTPACES THE US AND EVEN GERMANY THE POPULARITY OF CANADIAN BONDS HAS RISEN WITH FOREIGN INVESTORS WHO HELD NEARLY A THIRD OF CANADA'S C356 BILLION OF BONDS AND TREASURY BILLS OUTSTANDING AT THE END OF AUGUST EVEN SO THE BANK OF CANADA HAS HAD TO RAISE SHORTTERM RATES SLIGHTLY SINCE AUGUST WHEN PREELECTION JITTERS STARTED TO HIT THE CANADIAN DOLLAR ON AUG 10 THE BANK RATE OR RATE AT WHICH THE CENTRAL BANK LENDS TO FINANCIAL INSTITUTIONS HIT A 29YEAR LOW OF 42 BUT THE BANK OF CANADA HAS INCHED IT HIGHER TO DEFEND THE SINKING CANADIAN DOLLAR THE RATE STANDS AT 502 COMPARED WITH THE US DISCOUNT RATE OF 3 IN THE VOLATILITY BEFORE THE ELECTION TRADERS SEE THE US DOLLAR TRADING AS HIGH AS C135 BUT MOST GUESSES SEE IT DROPPING TOWARD C125 SOLELY ON FUNDAMENTAL FACTORS AFTER THE ELECTION STILL RISKS EXIST MORE THAN 80 OF CANADA'S EXPORTS GO TO THE US SO IF THE US RECOVERY FALTERS CANADA'S COULD GO WITH IT THERE HAVE BEEN SIGNS THAT CANADIAN GROWTH HAS BEEN SLOWING AS THE US ECONOMY REMAINS SLUGGISH AND ANOTHER DIP INTO RECESSION WOULD EXACERBATE THE CANADIAN BUDGET DEFICIT ANOTHER RISK IS THE CHANCE OF AN INCONCLUSIVE ELECTION RESULT WITH ONE OF THE THREE MINORITY PARTIES GAINING ENOUGH VOTES TO PREVENT ANY PARTY FROM GAINING A PARLIAMENTARY MAJORITY THAT WOULD DELAY BUDGET CUTBACKS RISKING CANADA'S CREDIT RATING AND ITS APPEAL TO INTERNATIONAL BOND INVESTORS IN A POLL RELEASED THURSDAY THE CONSERVATIVES ATTRACTED 36 OF VOTERS THE LIBERALS 33 THE RIGHTWING REFORM PARTY HAD 11 WHILE THE BLOC QUEBECOIS HAD 10 TWENTY PERCENT OF VOTERS WERE UNDECIDED ALTHOUGH KIM CAMPBELL THE CONSERVATIVE PRIME MINISTER CONTINUES TO BE MORE POPULAR THAN HER PARTY THE LIBERAL PARTY SURPRISED MARKETS WEDNESDAY BY ANNOUNCING A PLAN TO REDUCE CANADA'S DEFICIT TO 3 OF GDP OVER THREE YEARS ALTHOUGH LESS AMBITIOUS THAN THE CONSERVATIVES' GOAL OF ELIMINATING IT BY 1998 THE FACT THAT THE LIBERALS WANTED TO ADDRESS THE DEFICIT SURPRISED AND PLEASED MARKETS AND THE US DOLLAR TOUCHED A RECENT LOW OF C13084 THE MARKET IS RESPONDING TO A PERCEPTION THAT IT MIGHT NOT BE AS BIG A NEGATIVE AS PREVIOUSLY THOUGHT FOR THE LIBERALS TO WIN SAYS ANITA M LAURIA AN ECONOMIST AT SALOMON BROTHERS INC IN NEW YORK 9309200094 930920 NEW WORLD US DISCOUNT RETAILERS ARE TARGETING EUROPE AND ITS FAT MARGINS IN UK THEY GLEEFULLY FIND RICH SERVICE AND PRICES THEY HOPE TO UNDERCUT MAKING THE OPPOSITION FRET BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL ENFIELD ENGLAND ON A RECONNAISSANCE MISSION HERE RECENTLY AN AMERICAN DRESSED IN POLYESTER SLACKS AND A SHORTSLEEVE SHIRT CROSSED ENEMY LINES THE FOE EUROPEAN RETAILERS IN GENERAL AND THIS DAY MAKRO WAREHOUSE CLUB IN PARTICULAR HIS TASK TO GATHER INTELLIGENCE AND PREPARE FOR AN INVASION HIS CONCLUSION IT WILL BE A ROUT STROLLING DOWN MAKRO'S PRODUCTJAMMED AISLES IN THIS LONDON SUBURB PAUL MOULTON OF COSTCO WHOLESALE CORP AN OPERATOR OF MEMBERSONLY GENERALMERCHANDISE STORES BASED IN SEATTLE IS REMINDED OF AMERICAN RETAILING 30 YEARS AGO THIS IS EARLY WALMART THE EXECUTIVE SAYS LAUGHING DERISIVELY AND POINTING TO GARAGE SALE MERCHANDISE DISPLAYS AND TO BRANDS NOBODY EVER HEARD OF EVEN BETTER FROM HIS POINT OF VIEW ARE THE HIGH PRICES CASTING HIS GAZE ACROSS THE CAVERNOUS STORE REGARDED AS ONE OF THE DEEPEST DISCOUNTERS IN EUROPE MR MOULTON VOWS OUR PRICES WILL BE 30 LOWER THE YANKS ARE COMING NOT ONLY WAREHOUSE CLUBS SUCH AS COSTCO BUT CATEGORY KILLERS SUCH AS TOYS R US GENERAL DISCOUNTERS SUCH AS KMART AND DEVELOPERS OF FACTORYOUTLET MALLS ARE CROSSING THE ATLANTIC THESE DAYS AND FOR MANY BRITISH SHOPPERS IT IS NONE TOO SOON AMERICAN RETAILING SHOULD HAVE COME HERE 10 YEARS AGO SAYS RAYMOND BEECH A SIGN MAKER FROM BRISTOL HE IS ONE OF 25000 SHOPPERS DOUBLE THE NUMBER EXPECTED WHO SHOWED UP RECENTLY AT THE OPENING OF BRITAIN'S FIRST BIG FACTORYOUTLET MALL IN THE RURAL VILLAGE OF STREET IN WESTERN ENGLAND SURVEYING LINES 20 YARDS LONG AT STORES SUCH AS WRANGLER BENETTON AND PIERRE CARDIN WHERE BARGAIN HUNTERS SNAPPED UP SHARPLY REDUCED GOODS MR BEECH ADDS PEOPLE ARE TIRED OF HIGH PRICES AND EARLY CLOSING HOURS EUROPEAN RETAILERS ARE CLEARLY WORRIED IN GERMANY AND FRANCE ESTABLISHED MERCHANTS ARE FIERCELY OPPOSING PROPOSALS TO LEGALIZE LATEEVENING AND SEVENDAYAWEEK RETAILING THE HALLMARK OF AMERICAN DISCOUNTERS IN ENGLAND AND FRANCE SMALL RETAILERS ARE TRYING TO PERSUADE THE GOVERNMENT TO LIMIT THE SPREAD OF BIG DISCOUNTERS AND ENGLAND'S THREE LARGEST GROCERY CHAINS HAVE MOUNTED A LEGAL CHALLENGE TO COSTCO'S INVASION SUCH REACTIONS INDICATE VULNERABILITY THERE'S A BIG DEMAND FOR DISCOUNTING HERE AND BRITISH RETAILERS ARE NOT WELL PLACED TO SATISFY THAT DEMAND SAYS RICHARD HYMAN CHAIRMAN OF VERDICT RESEARCH LTD A LONDON RETAIL CONSULTING FIRM NOT THAT EVERYONE THINKS THE GOING WILL BE EASY DISCOUNTERS ARE FACED WITH A DIFFERENT KIND OF SHOPPER HERE IN THE UNITED KINGDOM THE CONSUMER TRADITIONALLY IS ACCUSTOMED TO A NICE SHOPPING ENVIRONMENT WON'T DRIVE VERY FAR AND IS SUSPICIOUS OF DISCOUNTING SAYS CHRISTOPHER DAWSON OF MANAGEMENT HORIZONS OF LONDON A RETAILMANAGEMENT CONSULTANCY ADDING THAT THE UK MARKET WILL BE A TOUGH ONE TO CRACK THE STAKES ARE HIGH FOR US DISCOUNTERS AFTER DECADES OF REVOLUTIONIZING DOMESTIC SHOPPING HABITS THEY ARE RUNNING OUT OF ROOM THE MARKET FOR WAREHOUSE CLUBS IS BECOMING SATURATED A BIG REASON WALMART STORES INC PARENT OF THE SAM'S CLUB CHAIN SUFFERED A DECLINE IN ITS RATE OF SALES GROWTH THIS YEAR FOR DISCOUNTERS SUCH AS DAYTON HUDSON CORP'S TARGET KMART CORP AND WALMART THERE ARE VERY FEW NEW MARKETS IN THE US TO ESTABLISH NEW STORES SAYS THOMAS W WATKINS KMART'S SENIOR VICE PRESIDENT INTERNATIONAL OPERATIONS LOOKING FOR GROWTH KMART LAST YEAR BOUGHT 13 STORES IN THE CZECH REPUBLIC AND SLOVAKIA AND HAS JUST ANNOUNCED A JOINT VENTURE TO OPERATE DISCOUNT STORES IN SINGAPORE WHAT EXCITES THE INVADERS IS THAT MOST RETAILERS IN EUROPE A MARKET THE SIZE OF THE US ENJOY FATTER PROFIT MARGINS THAN IN THE STATES IT'S LIKE AMERICA IN THE 1950S SAYS MR MOULTON OF COSTCO DEFENDERS OF UK RETAILING CITE EFFICIENT OPERATIONS NAPOLEON ONCE CALLED ENGLAND A NATION OF SHOPKEEPERS SAYS MICHAEL COLE PUBLICAFFAIRS DIRECTOR OF HARRODS AND THOUGH HE MEANT IT AS AN INSULT WE'RE PROUD TO BE A NATION OF SHOPKEEPERS BECAUSE WE'RE VERY GOOD AT IT BUT MR MOULTON SAYS ANY IDIOT CAN MAKE MONEY SELLING AT A HIGH PRICE TO UNDERSTAND THE APPEAL OF EUROPE TAKE A WALK THROUGH WHAT PASSES IN LONDON FOR A DISCOUNTER IT IS A GIANT DEPARTMENT STORE CALLED JOHN LEWIS AND EVERY ROOM DISPLAYS SIGNS PROMISING TO MATCH ANY RIVAL'S PRICE AND SAYING WE ARE NEVER KNOWINGLY UNDERSOLD BUT THAT IS EASY SINCE THERE ISN'T MUCH PRICE RIVALRY WALMART IT ISN'T THE DISTINGUISHING FEATURES AT JOHN LEWIS ARE PLUSH CARPETING BRASS DISPLAY RACKS AISLES TEEMING WITH SALES CLERKS BRANDS SUCH AS ARMANI AND PRICES THAT WOULD MAKE AN AMERICAN WINCE EVEN COMPARED WITH AN UPSCALE US RETAILER SUCH AS DILLARD DEPARTMENT STORES INC JOHN LEWIS DOESN'T FARE WELL A ONEOUNCE BOTTLE OF RALPH LAUREN SAFARI PERFUME THAT COSTS 425 AT JOHN LEWIS SELLS FOR 300 AT THE ARKANSAS RETAILER AT JOHN LEWIS A PAIR OF HOUSEBRAND MEN'S COTTON BRIEFS COSTS 515 DILLARD 3 SAME STORY FOR AN OSTER BLENDER 80 VS 50 OF COURSE FACTORS SUCH AS EXCHANGE RATES COMPLICATE SUCH COMPARISONS ALSO TARIFFS AND SHIPPING COSTS RAISE PRICES OF US GOODS OVERSEAS BUT RETAIL ANALYSTS SAY THE REVERSE OFTEN ISN'T TRUE AT CHURCH'S ENGLISH SHOES STORE IN MIDTOWN MANHATTAN A MODEL CALLED THE CONSUL COSTS 215 NEAR CHURCH'S BRITISH HEADQUARTERS THE SAME SHOE COSTS 223 A SPOKESMAN SAYS THAT OVERALL ITS NEW YORK PRICES ARE SLIGHTLY HIGHER AMERICAN DISCOUNTERS ARE ESPECIALLY EAGER TO ENTER THE FOOD MARKET HERE BRITISH SUPERMARKET CHAINS ENJOY NET PROFIT MARGINS OF AS MUCH AS 8 COMPARED WITH 1 IN THE US A LOOK AT TWO SAFEWAYS UNCONNECTED BY OWNERSHIP OR MANAGEMENT SHOWS HOUSEBRAND TOMATO SOUP SELLING FOR 46 CENTS IN ENGLAND COMPARED WITH 39 CENTS IN AMERICA AN OFFBRAND SIXPACK OF COLA 150 VS 90 CENTS WITH FRESH CHICKEN IT IS 135 A POUND COMPARED WITH 79 CENTS A RECENT MCKINSEY & CO STUDY CONCLUDED THAT UK PRICES ARE 30 HIGHER THAN US PRICES BUT AMERICANS HERE DON'T NEED A REPORT TO TELL THEM THAT AFTER SHOPPING IN LONDON FOR A BABY SEAT WENDY LEVINE A PHOTOGRAPHER LIVING HERE WITH HER HUSBAND AND INFANT SON BOUGHT ONE AT WALMART DURING A TRIP BACK TO THE STATES IT COST 59 LESS THAN ANY SHE SAW IN LONDON AND THE QUALITY WAS BETTER SHE SAYS PRICES HERE ARE INSANE COSTS HERE CAN BE CRAZY TOO AS TOYS R US DISCOVERED LAND LABOR DISTRIBUTION COSTS IN EUROPE ARE ALL MORE EXPENSIVE SAYS LARRY BOUTS PRESIDENT OF THE COMPANY'S INTERNATIONAL DIVISION BUT WE FELT WE COULD STILL SELL PRODUCT AT A DISCOUNT TO WHAT WAS BEING SOLD IN EUROPE AND WE WERE RIGHT INDEED IN A NORTH LONDON AREA CALLED SHOPPING CITY A MY FIRST KEN DOLL SELLS FOR THE EQUIVALENT OF 1345 AT TOYS R US COMPARED WITH 15 AT A BRITISHOWNED SHOP ACROSS THE STREET CALLED TOY CITY A PAIR OF FISHER PRICE ROLLER SKATES THAT COSTS 1615 AT TOYS R US SELLS FOR 1950 ACROSS THE STREET SANJAY POPAT MANAGER OF TOY CITY DISMISSES THE DIFFERENCES AS INSIGNIFICANT POINTING INSTEAD TO SERVICE AT TOYS R' US YOU CAN'T FIND ANYONE TO HELP YOU HE SAYS PERHAPS BUT WHILE TOYS R US IS BUSTLING THIS AFTERNOON MR POPAT'S TWO ASSISTANTS HAVE NO CUSTOMERS TO ASSIST NEITHER DOES ANNEMARIE BANKS ASSISTANT MANAGER OF ANOTHER NEARBY TOY SHOP CALLED KIDDI CENTRE WE'RE BARELY PAYING THE BILLS SHE SAYS BY WAY OF EXPLANATION SHE NODS IN THE DIRECTION OF TOYS R US THEIR PRICES ARE TOO LOW AMERICANS WOULDN'T THINK SO A PICTIONARY GAME THAT COSTS 1999 IN THE US COSTS THE EQUIVALENT OF 38 HERE A TONKA TURBO DIESEL THAT COSTS 27 IN THE STATES SELLS FOR 37 AT A LOCAL TOYS R US STORE IS THE DIFFERENCE ENTIRELY ATTRIBUTABLE TO HIGHER COSTS AS TOYS R US OFFICIALS CONTEND COSTCO'S MR MOULTON DOESN'T THINK SO ASSERTING THAT THE BIG CHAIN'S PROFIT MARGINS ARE FATTER HERE HE SAYS THE UK IS ONE OF THEIR MOST PROFITABLE OPERATIONS TO BE SURE IT IS ONE OF THE FASTEST GROWING DESPITE LAND COSTS THAT ARE 200 HIGHER THAN IN THE US TOYS R US IS OPENING SIX UK STORES THIS YEAR TO ADD TO ITS EXISTING 39 AND THE COMPANY'S MR BOUTS SEES ROOM FOR MORE WITH SALES FLAT AT US STORES OPEN MORE THAN A YEAR WE'RE BUILDING MORE STORES THIS YEAR OUTSIDE THE US THAN INSIDE HE SAYS WE THINK THAT TREND SHOULD CONTINUE TODAY TOYS R US HAS 167 STORES OUTSIDE THE US 105 IN EUROPE COMPARED WITH ABOUT 550 DOMESTIC OUTLETS AT COSTCO WHOSE RECENTLY PROPOSED MERGER WITH PRICE CO BASED IN SAN DIEGO WOULD CREATE THE LARGEST CHAIN OF WAREHOUSE CLUBS MR MOULTON PLANS TO ESTABLISH A SIGNIFICANT PRESENCE IN THE UK THEN EXPAND TO THE CONTINENT HE WON'T DISCUSS THE SCHEDULE EXCEPT TO SAY THAT THE FIRST OF TWO OUTLETS UNDER CONSTRUCTION WILL OPEN IN DECEMBER IN A TOWN NORTH OF LONDON CALLED THURROCK THE GOAL IS TO OFFER BRANDNAME PRODUCTS FOR THE LOWEST PRICE IN ENGLAND A 14INCH SONY TELEVISION SET THAT SELLS FOR THE EQUIVALENT OF 245 AT MAKRO FOR EXAMPLE WILL COST 150 AT COSTCO A SPOKESMAN FOR MAKRO A UNIT OF SHU HOLDINGS OF HOLLAND SAYS OUR POLICY IS NOT TO COMMENT ON THESE THINGS A CLUE TO COSTCO'S STRATEGY CAN BE GAINED FROM A VISIT TO THE BRITISH HEADQUARTERS OF THIS 5 BILLIONAYEAR RETAILER THE OFFICE OF MR MOULTON MANAGING DIRECTOR OF COSTCO EUROPE IS A SMALL ROOM HE SHARES WITH THREE SUBORDINATES THEIR METAL DESKS SURROUNDED BY BATTERED CABINETS INSTEAD OF CENTRAL LONDON THE BUILDING SITS IN A LIGHT INDUSTRIAL AREA IN A WORKINGCLASS SUBURB CALLED NEW BARNET IT'S CHEAPER OUT HERE SAYS MR MOULTON THE CASUAL CLOTHES HE WEARS IN LONDON WOULD BARELY PASS THE DRESS CODE IMPOSED ON CUSTOMERS AT HARRODS NO SLEEVELESS SHIRTS OR SKIMPY SHORTS BUT THE SHABBY LOOK OF COSTCO SERVES A PURPOSE IT INFORMS SUPPLIERS ARRIVING TO SELL MERCHANDISE THAT THIS RETAILER DOESN'T SPEND A PENNY MORE THAN NECESSARY THE BODY LANGUAGE OF THIS COMPANY UNMISTAKABLY COMMUNICATES THAT THIS IS A LOWCOST OPERATOR SAYS MR HYMAN THE BRITISH RETAIL ANALYST FOR US DISCOUNTERS THE BRITISH MARKET HOLDS A FEW SURPRISES OF ITS OWN HERE SMALLTOWN MERCHANTS HAVE THE CLOUT TO SLOW THE MARCH OF BIG RETAILERS WHEN JOHN LEWIS DEPARTMENT STORES DECIDED TO EXPAND TO THE TOWN OF HIGH WYCOMBE LOCAL CLOTHING RETAILERS HOWLED PROMPTING ZONING OFFICIALS TO PROHIBIT THE NEW STORE FROM SELLING APPAREL LIKEWISE OFFICIALS IN GLASGOW SCOTLAND HAVE REFUSED FOR YEARS TO GIVE THE GO AHEAD TO TOYS R US THEY NEVER LIKE THE SITE WE CHOOSE SAYS THE COMPANY'S MR BOUTS LEGAL CHALLENGES TO NEWCOMERS DON'T COME ONLY FROM SMALL RETAILERS THE OPENING OF COSTCO'S OUTLETS HERE HAS BEEN DELAYED FOR MONTHS BECAUSE SAFEWAY TESCO AND SAINSBURY SUPERMARKET CHAINS THAT CONTROL ABOUT 60 OF THE UK MARKET HIRED A PLANNING SPECIALIST TO CONTEST COSTCO'S APPLICATION FOR ZONING APPROVAL AT THREE SITES THEIR ARGUMENT THAT COSTCO WHICH APPLIED FOR A WHOLESALER'S PERMIT SHOULD BE CLASSIFIED AS A RETAILER EVEN THOUGH MORE THAN HALF ITS REVENUE COMES FROM SMALL BUSINESSES BUYING SUPPLIES OR GOODS FOR RESALE CLASSIFICATION CAN BE IMPORTANTRETAILERS OFTEN NEED TO MAKE NEIGHBORHOOD IMPROVEMENTSBUT SOME CONTEND THE REAL ISSUE IS FEAR OF COMPETITION YOU'VE GOT THREE FOOD CHAINS DOMINATING THE MARKET HERE AND ESSENTIALLY AGREEING NOT TO COMPETE ON PRICE AND NOW THEY'RE WORRIED ABOUT A NEW COMPETITOR SAYS ERIC MARTLEW A LABOR MEMBER OF PARLIAMENT WHO HAS FOUGHT FOR LOWER FOOD PRICES TO FIELD INQUIRIES ON COSTCO THE THREE BIG COMPETITORS HERE HIRED A SINGLE PUBLICRELATIONS FIRM CALLED GOOD RELATIONS A SPOKESMAN THERE SAYS THERE'S NO INTEREST IN STIFLING COMPETITION IT'S PURELY A MATTER OF SEEKING A LEVEL PLAYING FIELD BRITISH CUSTOMERS MAY BE A BIGGER PROBLEM THAN COMPETITORS IN SURVEYS A MAJORITY OF BRITONS SAY CONVENIENCE MATTERS MORE THAN PRICE JUST LOOK AT HARRODS ONE RECENT DAY THE PRINCESS OF WALES IS SHOPPING THERE AND SO ARE THOUSANDS OF ORDINARY BRITONS BUYING EVERYTHING FROM SCHOOL UNIFORMS TO VEGETABLES THEY VIEW US AS THEIR CORNER STORE SAYS MR COLE OF HARRODS NOTING THAT 60 OF HARRODS'S CUSTOMERS LIVE WITHIN THREE MILES THERE ALSO IS A PENCHANT HERE FOR CHARM AND SERVICE I'LL GLADLY PAY MORE TO GO TO A SMALL SHOP WHERE I KNOW THE OWNER RATHER THAN SOME BIG IMPERSONAL WAREHOUSE SAYS LINDY PRIDMORE A MAIL CARRIER IN THE TOWN OF HONITON DESPITE A TIGHT BUDGET EMILY MURPHY A LONDON MASSEUSE AND MOTHER OF A GIRL BUYS TOYS AT FULLPRICED SHOPS AVOIDING THE APPALLING SERVICE AND GHASTLY LOOK OF A TOYS R US WAREHOUSE THEN THERE IS THE TRADITIONALLY DEEP BRITISH SUSPICION OF ANYTHING THAT DOESN'T COST A LOT CUSTOMERS HERE TEND TO THINK CHEAP PRICES MEAN CHEAP PRODUCTS CONCEDES COSTCO'S MR MOULTON BUT THE RECENT GRAND OPENING OF THE CLARKS VILLAGE FACTORYOUTLET MALL IN STREET SHOWED THAT ATTITUDES ARE CHANGING THE UNFAMILIARITY OF THE CONCEPT ADVERTISED HERE AS TRENDY IN AMERICA DIDN'T DETER A CROWD SO LARGE THAT LATE ARRIVALS HAD TO PARK ON RURAL HIGHWAYS OUTSIDE TOWN AFTER DRIVING 20 MILES MARION FARNES OF MILBORNEPORT STOOD IN LINE FOR A HALFHOUR TO SAVE 15 ON A PAIR OF CLARKS'S SHOES SOMETHING SHE WOULDN'T HAVE DONE IN THE PAST IT'S RECESSION THAT BRINGS ATTENTION TO PRICE SHE SAYS AND DEBRA MURRAY ARMS FULL OF PACKAGES AND TWO CHILDREN IN TOW SOUNDED DOWNRIGHT AMERICAN EXPLAINING WHY SHE SPENT DOUBLE WHAT SHE HAD INTENDED EVERYBODY LOVES A BARGAIN DON'T THEY 9309200093 930920 FREQUENTFLIER PLANS TURBULENCE AHEAD BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL MANY BUSINESS TRAVELERS STOCKPILE FREQUENTFLIER MILES AS IF THEY WERE PUTTING MONEY IN A SAVINGS ACCOUNT THEN ASSUME THEY CAN EVENTUALLY SPEND THEM WITH EASE FOR FREE TICKETS BUT WHAT HAPPENS IF THERE'S A RUN ON THE BANK SUCH A SITUATION COULD DEVELOP IN COMING MONTHS AS MORE FLIERS ARMED WITH MORE MILES GO AFTER FEWER SEATS FREE TICKETS WILL STILL BE AVAILABLE BUT FREQUENT FLIERS WHO WANT THEM WILL HAVE TO BE FLEXIBLE PARTICULARLY ON INTERNATIONAL TRIPS AND TO POPULAR SITES LIKE HAWAII FLORIDA AND THE CARIBBEAN PASSENGERS WHO WANT TO USE THEIR MILES FOR FIRSTCLASS OR BUSINESSCLASS SEATS ON SOME INTERNATIONAL FLIGHTS SHOULD PLAN AT LEAST NINE MONTHS IN ADVANCE INDUSTRY EXPERTS SAY FREQUENT FLIERS ARE GOING TO HAVE A TOUGHER TIME REDEEMING MILES SAYS DONALD GARVETT VICE PRESIDENT OF SH&E INC A TRAVELINDUSTRY CONSULTING FIRM IN NEW YORK PEOPLE ARE GOING TO HAVE TO PLAN AHEAD TRAVEL OFFPEAK AND BE FLEXIBLE IN THEIR DATES AND TIMES OTHERS ADVISE TRAVELERS TO PARTICIPATE IN AS MANY FREQUENTFLIER PROGRAMS AS POSSIBLE THOUGH A DRAWBACK OF THIS IS THE LONGER TIME IT CAN TAKE TO ACCUMULATE REQUIRED MILEAGE SEVERAL FACTORS ARE CONSPIRING AGAINST THE AIRLINES' MOST LOYAL CUSTOMERS AT A TIME WHEN THE PROGRAMS ARE MORE POPULAR THAN EVER THE IDEA BEHIND THESE PROGRAMS THE FIRST ONE WAS INTRODUCED BY AMERICAN AIRLINES IN 1981 IS TO GIVE AWAY SEATS THAT WOULD OTHERWISE GO EMPTY AS LONG AS CARRIERS AGGRESSIVELY EXPANDED THROUGH THE '80S MORE PLANES MORE HUBS MORE ROUTES THAT WAS EASY NOW THE INDUSTRY REELING FROM BILLIONS OF DOLLARS IN LOSSES IS SCALING BACK AMONG THE NATION'S 10 LARGEST AIRLINES THE NUMBER OF AIRCRAFT AND SEATS WILL DECLINE THIS YEAR AND IS EXPECTED TO INCREASE ONLY MARGINALLY THROUGH 1998 ACCORDING TO SALOMON BROTHERS INC AT THE SAME TIME DEMAND FOR FREE SEATS IS SKYROCKETING LAST YEAR PASSENGERS REDEEMED 1786 BILLION MILES FOR FREQUENTFLIER CERTIFICATES MORE THAN DOUBLE THE NUMBER SIX YEARS AGO THE CERTIFICATES IN TURN ARE EXCHANGED FOR TICKETS THE INDUSTRY'S LARGEST AIRLINES FLY ABOUT 6 TO 8 OF THEIR PASSENGERS ON NONREVENUE TICKETS STEMMING FROM THE PROGRAM TRIPLE THE NUMBER FIVE YEARS AGO FACED WITH THAT DEMAND CARRIERS HAVE BEGUN IMPOSING MORE BLACKOUT DATES DURING PEAK FLYING PERIODS SUCH AS THOSE AROUND THE THANKSGIVING AND CHRISTMAS HOLIDAYS AIRLINES THAT DO ACCEPT FREQUENTFLIER CERTIFICATES DURING THE HOLIDAYS ADVISE PASSENGERS USING THEIR ACCUMULATED MILEAGE TO BOOK FAR IN ADVANCE CARRIERS ARE ALSO LIMITING THE USE OF FREQUENTFLIER MILEAGE FOR UPGRADES TO FIRSTCLASS SEATS THEREBY AVERTING THE POSSIBILITY OF DISPLACING A PAYING FIRSTCLASS PASSENGER FREQUENT FLIERS AREN'T PLEASED PEOPLE WHO CAN'T GET FREE TICKETS COME BACK MAD BECAUSE THEY FEEL THEY'VE EARNED THEM SAYS ROBERT THALER PRESIDENT OF SEA & AIR TRAVEL INC A FAIR LAWN NJ TRAVEL AGENCY AIRLINE OFFICIALS SAY THAT MOST TRAVELERS WHO GIVE AMPLE NOTICE AND ARE FLEXIBLE ON FLYING DATES ULTIMATELY GET THEIR TICKETS THEY NOTE THAT THEIR LOAD FACTORS OR PERCENTAGE OF SEATS FILLED PER FLIGHT ARE ABOUT 63 ON AVERAGE BUT THAT FIGURE IGNORES THAT THE MOST POPULAR FLIGHTS FOR FREE TICKETS SUCH AS LOS ANGELES TO HONOLULU OR NEW YORK TO ORLANDO FLA ARE PACKED EVEN SOME AIRLINE OFFICIALS ACKNOWLEDGE THAT THE TORRID GROWTH OF THE PROGRAMS WILL LEAD TO INCREASING NUMBERS OF FLIERS WHO HAVE THE MILES TO FLY FREE BUT ARE LEFT STANDING AT THE GATE AT THE END OF LAST YEAR 302 MILLION PASSENGERS HAD 123 BILLION MILES IN THEIR FREQUENTFLIER ACCOUNTS THE EQUIVALENT OF 61000 DOMESTIC COACHCLASS TICKETS OR TWICE AS MANY OUTSTANDING MILES AS FIVE YEARS AGO AIRLINES ARE DRIVING DEMAND FOR FREE TRAVEL BY FORCING PASSENGERS TO EITHER USE THEIR MILES OR LOSE THEM FIVE CARRIERS AMR CORP'S AMERICAN UAL CORP'S UNITED WINGS HOLDINGS INC'S NORTHWEST AMERICA WEST AIRLINES AND ALASKA AIR GROUP'S ALASKA AIRLINES REQUIRE FLIERS TO CASH IN THEIR MILES THREE YEARS AFTER THEY HAVE BEEN EARNED ALTHOUGH THE FLIGHT ITSELF DOESN'T HAVE TO BE TAKEN FOR ANOTHER YEAR AFTER THE MILES ARE REDEEMED THE CARRIERS WANT TO BURN OFF THE MILES FROM THEIR BALANCE SHEETS THEY ARE CARRIED AS A LIABILITY AND 1993 IS THE FIRST FULL YEAR THAT MEMBERS OF THESE FIVE PROGRAMS WILL HAVE UNUSED MILES EXPIRE I THINK YOU'LL SEE A BIG RUSH OF PEOPLE EITHER USE THEIR MILES OR GIVE THEM TO A FAMILY MEMBER SAYS THOMAS NULTY PRESIDENT OF ASSOCIATED TRAVEL MANAGEMENT A SANTA ANA CALIF TRAVEL AGENCY THE AIRLINES SAY FREQUENT FLIERS SHOULD NOT BE WORRIED ABOUT FINDING FREE SEATS AT LEAST IN THE SHORT TERM BECAUSE THE FALL IS OFFPEAK SEASON AND EMPTY SEATS ABOUND OVER TIME THEY SAY CARRIERS WOULD BE FOOLISH TO MAKE SEATS HARD TO GET BECAUSE THAT WOULD ANTAGONIZE THEIR BEST CUSTOMERS WE TRY TO CREATE RULES THAT MEET CUSTOMER EXPECTATIONS SAYS BRUCE CHEMEL MANAGING DIRECTOR OF MARKETING PROGRAMS AT AMERICAN AIRLINES 9309200092 930920 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 309 60 TO 119 DAYS 318 120 TO 179 DAYS 320 180 TO 239 DAYS 323 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 314 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 274 SIX MONTHS 289 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 313 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 307 90 DAYS 316 120 DAYS 316 150 DAYS 316 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 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 3/16 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY SEPTEMBER 13 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 306 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 658 60 DAYS 666 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 659 60 DAYS 669 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 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 9309200091 930920 HOTELS TURN GUEST ROOMS INTO WELLSTOCKED OFFICES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL NOW THAT BUSINESS CENTERS ARE A STANDARD FIXTURE IN BIG URBAN HOTELS TRAVELERS ARE MOVING THE BUSINESSAMENITY BATTLE TO A NEW FRONT THE GUEST ROOM ITSELF TODAY'S ROAD WARRIORS ARE DEMANDING AND GETTING SUCH INROOM AMENITIES AS HOOKUPS FOR LAPTOP COMPUTERS PHONES WITH MULTIPLE LINES FAX MACHINES AND VOICE MAIL AND IN THE LONG RUN HOTELIERS SAY THOSE PERKS MAY BE MORE EFFECTIVE AND CHEAPER THAN BUSINESS CENTERS FOR ATTRACTING REPEAT BUSINESS JUST ASK PETER ARANOW WHO LIVES ON THE ROAD FOR WEEKS AT A TIME ARMED ONLY WITH A POWERFUL COMPAQ PORTABLE AND A SUITCASE I ASSUME I'M GOING TO HAVE TO LIVE WITHOUT SUPPORT SAYS THE CHIEF FINANCIAL OFFICER OF PLAYERS INTERNATIONAL INC AND A FORMER INVESTMENT BANKER HE CONTENDS THAT IT IS SIMPLER AND MORE EFFICIENT TO SET UP A COMMAND POST IN HIS ROOM BIG CHAINS ANXIOUS TO CULTIVATE A SHRINKING POOL OF BUSINESS TRAVELERS ARE PAYING ATTENTION RADISSON HOTELS INTERNATIONAL INC IS TESTING BUSINESS CLASS ACCOMMODATIONS WHICH INCLUDE INROOM COFFEE BREAKFAST COMPUTER HOOKUPS INROOM MOVIES NEWSPAPERS AND QUICK FAX DELIVERY THE PLAN IS BEING TEST MARKETED IN CHICAGO NEW YORK LOS ANGELES WASHINGTON MINNEAPOLIS DALLAS BOCA RATON FLA AND LONDON HILTON HOTELS CORP IS TESTING A SIMILAR CONCEPT HYATT HOTELS CORP IN HOUSTON AND BOSTON IS TRYING OUT SPECIALLY STAFFED FLOORS WITH ROOMS THAT INCLUDE FREE FAXES OFFICE SUPPLIES AND OTHER BUSINESS AMENITIES AND MARRIOTT CORP YEARS AGO OPTED TO BUILD ONLY A HANDFUL OF BUSINESS CENTERS IN FAVOR OF INSTALLING MULTILINE TELEPHONES AND EXPRESS CHECKIN PROGRAMS AMONG OTHER SERVICES IT IS AN APPROACH THAT MANY COMPETITORS HAVE SINCE ADOPTED AT THE LUXURY END OF THE MARKET OPERATORS SUCH AS FOUR SEASONS HOTELS INC HAVE OFFERED EVERYTHING FROM SOPHISTICATED TELEPHONEMESSAGE SYSTEMS TO INROOM FAXES TO FREE SHOESHINES AND 24HOUR CONCIERGES TO KEEP GUESTS HAPPY AT RATES OF 180 OR MORE A NIGHT CUSTOMERS EXPECT SUCH FRILLS ON THE OPPOSITE END OF THE MARKET BUDGET PROPERTIES OFTEN PROVIDE ACCESS AT A CHARGE TO FAX MACHINES AND OTHER BASICS IN THE BROAD MIDDLE MARKET TRAVELERS ARE LARGELY UNWILLING TO PAY MUCH FOR SUCH SERVICES THEY MAY EXPECT A CHARGE FOR RENTING CELLULAR PHONES BUT A 6APAGE FAX FEE CAN SEND THEM PACKING PEOPLE DON'T WANT TO SUBSIDIZE SOME SERVICE THEY'RE NOT USING SAYS MARC YANOFSKY HYATT'S SENIOR VICE PRESIDENT OF DEVELOPMENT ON THE OTHER HAND THEY DON'T WANT TO FEEL WE'RE NICKELANDDIMING THEM THERE'S A TENSION BETWEEN THE TWO AND IT'S VERY HARD TO RESPOND APPROPRIATELY ALSO BUSINESS GUESTS HAVEN'T EXACTLY FLOCKED TO THE BUSINESS CENTERS THAT HAVE BECOME STANDARD IN BIG URBAN HOTELS THE CENTERS GENERALLY PROVIDE PERSONAL COMPUTERS FAX MACHINES COPIERS SECRETARIAL SERVICE OVERNIGHT DELIVERY AND OTHER GOODIES USUALLY AT AN ADDITIONAL CHARGE THE CONCEPT OF A BUSINESS CENTER INTUITIVELY MAKES SENSE SAYS STEVE WEISZ SENIOR VICE PRESIDENT OF ADVERTISING AND MARKETING FOR MARRIOTT'S HOTELS AND RESORTS BUT WHILE NOT ALL EXISTING CENTERS ARE FLOPS HE SAYS THEY'RE NOT AN OVERWHELMING SUCCESS THE REASONS RANGE FROM HIGH TECHNOLOGY TO POOR PLANNING HARRIED BUSINESS TRAVELERS ARE INCREASINGLY TAKING THEIR OFFICES ON THE ROAD WITH THEM NOT ONLY WITH COMPUTERS BUT WITH PORTABLE FAXES AND OTHER ELECTRONIC EQUIPMENT NOT WIDELY AVAILABLE A FEW YEARS AGO FOR MANY TRAVELERS THE IDEA OF DRESSING IN BUSINESS ATTIRE TO WORK IN A HOTEL CENTER LEAVES THEM COLD AND OTHERS WORRY ABOUT PRIVACY FRETTING OVER SENSITIVE DATA BEING SPILLED OUT ON PUBLIC FAX MACHINES BUSINESS CENTERS SWEPT THE LODGING INDUSTRY IN THE 1980S WITH SOME OPERATORS SPENDING MILLIONS ON FANCY WORKSTATIONS AND OTHER PERKS THERE HAS BEEN NO RUSH TO CLOSE THEM DOWN BUT THAT COULD CHANGE STAFFING A GOODSIZED HOTEL CENTER CAN RUN AS MUCH AS 120000 TO 150000 A YEAR AND SOME HOTELS ARE NOW LEASING OUT THEIR CENTERS TO PRIVATE OPERATORS TO CUT COSTS HOTELS FREQUENTLY OPERATE THEIR CENTERS FROM 9 AM TO 5 PM TO HELP KEEP COSTS DOWN ADDING YET ANOTHER DRAWBACK DURING BUSINESS HOURS I'M OUT OF THE HOTEL SAYS MICHAEL RISTAU A SALES REPRESENTATIVE FOR MINNESOTA MINING & MANUFACTURING CO WHO LOGS ABOUT 130 NIGHTS A YEAR IN HOTELS HILTON FOR ONE STILL HAS BUSINESS CENTERS IN MANY LOCATIONS MICHAEL RIBERO HILTON'S VICE PRESIDENT OF MARKETING SAYS THE CENTERS MAY NOT TURN PROFITS BUT HE CONSIDERS THEM A COMPETITIVE ADVANTAGE BUT HILTON WAS THINKING OF THE INROOM NEEDS OF ITS BUSINESS TRAVELERS WHEN IT RECENTLY ELIMINATED TELEPHONEACCESS CHARGES FOR CALLINGCARD CALLS REACTING TO A LONGSTANDING GRIPE OF THOSE WHO TYPICALLY MAKE DOZENS OF SUCH CALLS DAILY STANDARD CHARGES IN THE INDUSTRY FOR CALLINGCARD CALLS RANGE FROM 75 CENTS TO 150 A CALL GRADUALLY INDUSTRY INSIDERS SAY BUSINESS CENTERS MAY BE HEADED THE WAY OF THE HOTEL TELEGRAM SERVICE THEY'LL BE DINOSAURS OBSOLETE SAYS EDWARD WATKINS EDITOR OF LODGING HOSPITALITY A TRADE MAGAZINE PEOPLE WILL HAVE VERY LITTLE USE FOR THEM EVENTUALLY 9309200090 930920 CANADIAN SHIPMENTS DECLINE OTTAWA CANADIAN MANUFACTURERS REGISTERED A 15 DECLINE IN SHIPMENTS IN JULY FROM JUNE AND A 27 DROP IN NEW ORDERS STATISTICS CANADA A GOVERNMENT AGENCY SAID SHIPMENTS DECLINED IN THREE OF THE FOUR LATEST MONTHS FOR WHICH DATA ARE AVAILABLE AND NEW ORDERS HAVE DROPPED IN FOUR OF THE LATEST FIVE MONTHS THE AUTO INDUSTRY SHOWED THE BIGGEST DROP IN JULY SHIPMENTS A 68 DECLINE FROM JUNE WOOD INDUSTRY SHIPMENTS FELL 23 IN JULY MANUFACTURERS' UNFILLED ORDERS DECLINED 03 IN JULY THE THIRD DROP IN FOUR MONTHS THE MACHINERY INDUSTRY SHOWED A 35 DECLINE IN ORDER BACKLOGS IN JULY AND PRODUCERS OF FABRICATED METAL PRODUCTS RECORDED A 16 DROP 9309200089 930920 MARKETING & MEDIA REVLON'S ITALIAN UNIT BUYS FIRM NEW YORK REVLON CONSUMER PRODUCTS CORP SAID ITS ITALIAN UNIT ACQUIRED AN ITALIAN HAIRCARE AND COSMETICS MANUFACTURER REVLON SPA WHICH IS BASED IN MILAN BOUGHT INTERCOSMO SPA WHICH IS BASED IN BOLOGNA INTERCOSMO MAKES AND MARKETS VARIOUS SALON AND CONSUMER PRODUCTS AND OWNS THE BAN DE SOLEIL TRADEMARK REVLON SAID REVLON IS A UNIT OF MACANDREWS & FORBES HOLDINGS INC REVLON MAKES AND MARKETS COSMETICS SKIN CARE FRAGRANCE AND PERSONAL CARE PRODUCTS ITS GLOBAL BRAND NAMES INCLUDE ALMAY ULTIMA II FLEX AND JEAN NATE 9309200088 930920 RECOGNITION INTERNATIONAL JOB DALLAS RECOGNITION INTERNATIONAL INC SAID ITS CANADIAN SUBSIDIARY WAS AWARDED A 14 MILLION US CONTRACT FROM THE CANADIAN DEPARTMENT OF NATIONAL DEFENSE TO DESIGN PROVIDE AND SERVICE A COMPUTER NETWORK RECOGNITION SAID THE SYSTEM WILL INCLUDE 1300 WORKSTATIONS AT 53 LOCATIONS AND WILL PROVIDE THE CANADIAN DEFENSE DEPARTMENT WITH COMMUNICATIONS CAPABILITIES FOR MOVING DATA BETWEEN BASES AND OTHER LOCATIONS MESSAGING SERVICES AND ADMINISTRATIVE APPLICATIONS FOR OFFICE AUTOMATION THE CONTRACT ALSO REQUIRES RECOGNITION TO PROVIDE SERVICE FOR TWO YEARS 9309200087 930920 WHO'S NEWS PLC SYSTEMS INC PLC SYSTEMS INC MILFORD MASS M LEE HIBBS JR 47 YEARS OLD CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF ELECTROCATHETER CORP WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SURGICAL LASER MAKER EFFECTIVE OCT 12 HE SUCCEEDS ROBERT RUDKO WHO CONTINUES AS CHAIRMAN AND CHIEF SCIENTIST 9309200086 930920 SURVIVAL GUIDE FOR THE BUSINESS TRAVELER FOR THE BUSINESS TRAVELER LIFE ON THE ROAD IS GETTING ROUGHER WITH SOME NOTABLE EXCEPTIONS NONRESTRICTED AIR FARES ARE HIGHER THIS FALL CARRENTAL RATES UP 10 TO 15 OVER THE PAST YEAR ARE EXPECTED TO CLIMB AGAIN THIS FALL ALTHOUGH RATES FOR LODGING ARE RISING MORE SLOWLY THAN INFLATION HOTEL CHAINS AREN'T AS QUICK TO LAVISH PERKS SUCH AS ROOM UPGRADES ON ANY GUEST WHO WALKS IN THE DOOR AIRLINES ARE ALSO ELIMINATING ROUTES IN SOME CASES MAKING TRIPS MORE DIFFICULT TO SCHEDULE AND IT IS GETTING TOUGHER TO TURN FREQUENTFLIER MILES INTO FREE FLIGHTS NOWADAYS MANY BUSINESS TRAVELERS FACE THE ADDITIONAL HEADACHE OF TRYING TO SATISFY THEIR EMPLOYERS' DESIRE TO KEEP COSTS DOWN GENE DENEZZA VICE PRESIDENT OF AN INFORMATIONTECHNOLOGY FIRM SAYS HIS COMPANY IS INCREASINGLY URGING HIM TO TRAVEL ECONOMY CLASS AND TO STAY AT LESSEXPENSIVE HOTELS BUT NOT TO STOP TRAVELING I JUST HAVE TO DO IT SAYS THE EXECUTIVE WHO GOES TO EUROPE SIX TO EIGHT TIMES A YEAR FROM HIS RESTON VA HOME ALTHOUGH PRICES AND SERVICES CHANGE RAPIDLY BUSINESS PEOPLE HAVE DEVISED A VARIETY OF STRATEGIES FOR COPING WITH THE HIGH COST AND HASSLE OF TRAVELING TODAY THE ARTICLES ON THIS PAGE OUTLINE SOME OF THESE STRATEGIES AND EXAMINE THE NEW LANDSCAPE OF THE TRAVEL INDUSTRY SEE RELATED ARTICLES TRAVEL INDUSTRY SPEEDS UP CHECKINS AND CHECKOUTS THE FRUGALMINDED FIND WAYS TO TRIM COSTS OF TRAVEL ABROAD AIRPORT SHUTTLES AND LIMOS COMPETE WITH RENTAL CARS HOTELS TURN GUEST ROOMS INTO WELLSTOCKED OFFICES AND FREQUENTFLIER PLANS TURBULENCE AHEAD WSJ SEPT 20 1993 9309200085 930920 KEEP CONTROLS ON SPACE LAUNCH TECHNOLOGY BY BRIAN G CHOW AN INTERAGENCY WORKING GROUP ORDERED BY PRESIDENT CLINTON PROPOSES THAT THE US RELAX EXPORT CONTROLS ON SPACE LAUNCH TECHNOLOGY WHILE TIGHTENING SAFEGUARDS AGAINST THE DIVERSION OF THIS TECHNOLOGY TO MILITARY PROGRAMS THE PROPOSED CHANGES STILL SUBJECT TO PRESIDENTIAL APPROVAL WOULD HAVE DETRIMENTAL AND IRREVERSIBLE CONSEQUENCES FOR NONPROLIFERATION IN THE LONG RUN ANY HOPEDFOR ECONOMIC BENEFITS WOULD BE SMALL SPACE LAUNCH TECHNOLOGY CANNOT BE SAFEGUARDED FROM DIVERSION FOR MILITARY PURPOSES SPACE LAUNCHERS ARE BALLISTIC MISSILES IN MANY COUNTRIES THE PERSONNEL AND FACILITIES DEVOTED TO DEVELOPING SPACE LAUNCHERS ARE THE SAME ONES INVOLVED IN BALLISTIC MISSILE DEVELOPMENT WHILE THE ACCELERATED DEVELOPMENT OF LIMITEDRANGE BALLISTIC MISSILES LIKE SCUDS IS THREATENING ENOUGH COUNTRIES THAT MASTER SPACE LAUNCH TECHNOLOGY WILL HAVE MASTERED OR SOON WILL MASTER INTERCONTINENTAL BALLISTIC MISSILE ICBM TECHNOLOGY THESE MISSILES CAN BE USED TO HURL WARHEADS ANYWHERE ON THE GLOBE AFTER THE REAGAN ADMINISTRATION ORDERED AIR STRIKES AGAINST LIBYAN TARGETS IN APRIL 1986 IN RETALIATION FOR LIBYAN INVOLVEMENT IN A TERRORIST BOMBING IN BERLIN COL MOAMMAR GADHAFI SAID THAT IF HE HAD HAD ICBMS AND NUCLEAR WEAPONS HE WOULD HAVE NUKED NEW YORK IF SADDAM HAD HAD BOTH HE COULD HAVE DONE THE SAME DURING THE GULF WAR OR SAVED THEM FOR SOME FUTURE CONFLICT WITH THE US IT IS EASY TO SEE THAT THE POLITICAL AND MILITARY ACTIONS OF THE US AND ITS ALLIES WOULD BE HAMPERED OR EVEN DETERRED BY AN ADVERSARY POSSESSING AN ICBM CAPABILITY COUPLED WITH WEAPONS OF MASS DESTRUCTION IT WOULD BE INCONSISTENT AND IRONIC FOR THE US TO WRESTLE WITH THE APPROPRIATE MEANS TO CONTROL THE PROLIFERATION OF SHORTRANGE BALLISTIC MISSILES WHILE CONTRIBUTING TO THE SPREAD OF EVEN MORE DANGEROUS ICBMS THE WEAPONS IT SOUGHT TO LIMIT FOR SO MANY YEARS IN NEGOTIATIONS WITH THE SOVIET UNION NOR WOULD IT BE CONSISTENT TO SPREAD ICBM TECHNOLOGY WHILE GUTTING THE DEVELOPMENT OF A DEFENSE OF THE US AGAINST BALLISTIC MISSILE ATTACK THE INTERAGENCY GROUP'S REVIEW HAS NOT YET BEEN RELEASED BUT HELPING THE BELEAGUERED DEFENSE INDUSTRY BY BOOSTING ITS EXPORTS IS APPARENTLY A SIGNIFICANT FACTOR MOTIVATING THE PROPOSAL TO RELAX CONTROLS EXPORTING SPACE LAUNCH TECHNOLOGY AND EXPORTING AIRCRAFT HAVE BEEN MENTIONED IN THE SAME BREATH BY PEOPLE WHO OVERLOOK THEIR DIFFERENCES LAST MONTH PRESIDENT CLINTON PERSUADED SAUDI ARABIA TO PURCHASE 6 BILLION IN NEW PASSENGER JETS FROM BOEING AND MCDONNELL DOUGLAS THE ECONOMIC BENEFITS OF EXPORTING SPACE LAUNCH TECHNOLOGY ARE NOT ANYWHERE NEAR AS LARGE CONSIDERING THE COMPETITION FROM RUSSIA THE EUROPEAN SPACE AGENCY JAPAN AND OTHERS THE AMERICAN SHARE OF SPACE LAUNCH TECHNOLOGY SALES IS UNLIKELY TO EXCEED 200 MILLION A YEAR IT WOULD TAKE 30 YEARS OF SUCH SALES TO EQUAL WHAT WE JUST ACHIEVED WITH THAT SINGLE AIRCRAFT SALE FURTHERMORE AFTER OTHER COUNTRIES SUCCEED IN DEVELOPING THEIR OWN SPACE LAUNCH CAPABILITY THEY WILL NO LONGER ASK THE US FOR LAUNCH SERVICES ONE ARGUMENT MADE FOR THE PROPOSED CHANGES IS THAT THE US SHOULD FOCUS MORE ON THE CONTROL OF NUCLEAR BIOLOGICAL AND CHEMICAL WEAPONS SOME WOULD ARGUE THAT ICBMS WITH ONLY CONVENTIONAL WEAPONS ARE INEFFECTIVE BUT WE CANNOT EXPECT THE CONTROL OF WEAPONS OF MASS DESTRUCTION TO BE 100 LEAKPROOF THE FREE WORLD APPEARS TIMID ABOUT TAKING STEPS CONSIDERED TOO DRASTIC BY SOME TO STOP EVEN ROGUE NORTH KOREA FROM DEVELOPING NUCLEAR WEAPONS WHAT HAPPENS IN THE FUTURE WHEN WE'RE FACED WITH A SIMILAR CRISIS WITH IRAN LIBYA SYRIA OR EVEN IRAQ WILL THESE COUNTRIES LOOK BACK ON OUR DEALINGS WITH NORTH KOREA AND TAKE OUR ADMONITIONS OR THREATS OF RETALIATION HOWEVER STRONG LESS THAN SERIOUSLY AS FOR BIOLOGICAL AND CHEMICAL WEAPONS EFFECTIVELY CONTROLLING THEM WOULD BE EVEN MORE DIFFICULT BECAUSE THE BASIC AGENTS ARE ALSO USED IN LEGITIMATE PHARMACEUTICAL AND CHEMICAL INDUSTRIES WORSE YET SPACE LAUNCH TECHNOLOGY WILL HELP NATIONS IN DEVELOPING BETTER BALLISTIC MISSILES OF MUCH SHORTER RANGE THE IRANIRAQ WAR AND THE GULF WAR HAVE SHOWN THAT THESE MISSILES WITH CONVENTIONAL WARHEADS WERE USED AGAINST INNOCENT BYSTANDERS AND WERE HARD TO COUNTER FULLY WHEN THE STAKES ARE SO HIGH WE SHOULD HEDGE OUR BETS SOME HAVE ARGUED THAT IF THE US WON'T HELP WITH SPACE LAUNCH TECHNOLOGY OTHER COUNTRIES WILL SO WE MIGHT AS WELL DO IT INSTEAD EVIDENCE TO DATE SHOWS THAT IF WE DON'T DO IT OTHERS SOMETIMES WON'T OR CAN BE PERSUADED NOT TO IN 1990 BRAZIL WANTED TO ACQUIRE A LIQUID ROCKET ENGINE TECHNOLOGY THE US REFUSED TO SELL IT TO BRAZIL AND AT THE SAME TIME SUCCEEDED IN PERSUADING FRANCE AND OTHERS TO FOLLOW SUIT IN JULY THE CLINTON ADMINISTRATION PERSUADED THE RUSSIANS TO SCALE BACK A SALE OF CRYOGENIC LIQUID ROCKET ENGINES TO INDIA THE ADMINISTRATION HAS ALSO HAD SOME SUCCESS WITH BUYERS FOR EXAMPLE SOUTH AFRICA CONVINCED THAT SPACE LAUNCH DEVELOPMENT WOULD NOT BE PROFITABLE CANCELED ITS PROGRAM IN JUNE IF THE WORKING GROUP'S PROPOSAL IS APPROVED THE IMMEDIATE ACTIONS WILL LIKELY BE THE APPROVAL OF SPACE LAUNCH HARDWARE EXPORTS TO FRIENDLY COUNTRIES SUCH AS SPAIN AUSTRALIA AND ITALY THESE COUNTRIES ARE ALREADY MEMBERS OF THE MISSILE TECHNOLOGY CONTROL REGIME THE TREATY ON THE NONPROLIFERATION OF NUCLEAR WEAPONS AND THE BIOLOGICAL WEAPONS CONVENTION AND HAVE OTHER WORTHY NONPROLIFERATION CREDENTIALS BUT OTHER LAUNCHPROVIDING COUNTRIES ARE LIKELY TO FOLLOW THE LEAD OF THE US AND MAY HAVE DIFFERENT INTERPRETATIONS OF GOOD CREDENTIALS EVEN OUR ALLIES' ACCEPTABLE LISTS WOULD INCLUDE COUNTRIES THAT THE US DEEMS UNACCEPTABLE FURTHER IF THE WEST CAN HELP ITS FRIENDS CHINA CAN CLAIM THAT IT CAN ASSIST NORTH KOREA AND RUSSIA MAY WANT TO HELP IRAN SYRIA AND OTHERS AND FRIENDS CAN BECOME ENEMIES HAD THE US HELPED THE SHAH OF IRAN DEVELOP A SPACE LAUNCH CAPABILITY AS IT HAD DONE WITH MANY OTHER PROGRAMS THE AYATOLLAH WOULD HAVE HAD ICBMS TO THREATEN THE US HOMELAND AS WELL AS FOR SALE TO OUR ADVERSARIES PRESIDENT CLINTON SHOULD SCRAP THE PROPOSAL FOR LIBERALIZATION OF SPACE LAUNCH TECHNOLOGY EXPORTS HIS MISSILE NONPROLIFERATION EFFORTS HAVE BEEN PRODUCTIVE TO DATE AND HE SHOULD STAY THE COURSE MR CHOW IS A PHYSICAL SCIENTIST AT THE RAND CORP AND AUTHOR OF ITS RECENT STUDY EMERGING NATIONAL SPACE LAUNCH PROGRAMS ECONOMICS AND SAFEGUARDS 9309200084 930920 REGIS CORP ACQUISITION REGIS WHICH OWNS AND OPERATES MALLBASED HAIR SALONS SAID THAT UNDER THE PACT IT WILL BUY 27 TRADE SECRETOWNED 42 TRADE SECRETFRANCHISED AND FIVE INDEPENDENTLY OWNED SPECIALTY RETAIL SALONS SITUATED IN SHOPPING MALLS IN 20 STATES IN THE MIDWEST AND EASTERN US THE TRANSACTION IS SUBJECT TO CUSTOMARY CLOSING CONDITIONS INCLUDING FINANCING AND LENDER CONSENT 9309200083 930920 REVIEW & OUTLOOK EDITORIAL ASIDES NEVER TOO LATE A NEW STUDY BY A NAVAL ARCHITECTURAL FIRM BLAMES WEAK STEEL PLATES FOR THE SINKING OF THE TITANIC NOT THE MASSIVE ICEBERG THE SHIP STRUCK WHILE ON HER MAIDEN VOYAGE ACCORDING TO THE REPORT A BETTER QUALITY OF STEEL PLATE MIGHT HAVE AVERTED HER LOSS OR RESULTED IN AN EVEN SLOWER RATE OF FLOODING THAT MAY HAVE SAVED MORE PASSENGERS AND CREW THAT GIANT SUCKING SOUND YOU'RE HEARING IS NOT JOBS FLEEING TO MEXICO UNDER NAFTA BUT AMERICAN CONTINGENCYFEE CONSTABULARIES CATCHING THE CONCORDE TO THE CONTINENT LOOKING FOR SURVIVING RELATIVES AND ANCESTORS OF THE ILLFATED PASSENGER LINER 9309200082 930920 WHO'S NEWS COLUMBIA GAS SYSTEM INC COLUMBIA GAS SYSTEM INC WILMINGTON DEL ROBERT H BEEBY 61 YEARS OLD CHAIRMAN OF SERVICE AMERICA CORP STAMFORD CONN WAS ELECTED A DIRECTOR OF THIS NATURAL GAS SYSTEM INCREASING THE BOARD TO 16 MEMBERS 9309200081 930920 INTERNATIONAL WITHHOLDING TAX IS CUT BY FRANCE ON PAYOUTS TO FOREIGN INVESTORS SPECIAL TO THE WALL STREET JOURNAL PARIS THE FRENCH ECONOMICS MINISTRY IN A MOVE AIMED AT DRAWING MORE INTERNATIONAL INVESTORS TO THE PRIVATIZATIONS OF VARIOUS FRENCH COMPANIES SAID IT WOULD LOWER THE WITHHOLDING TAX ON DIVIDENDS PAID TO FOREIGNERS BEGINING JAN 1 1994 FOREIGN INVESTORS RECEIVING DIVIDENDS FROM FRENCH COMPANIES WILL FACE A 15 AUTOMATIC WITHHOLDING TAX COMPARED WITH THE CURRENT 25 THEREFORE ON A DIVIDEND OF 100 FRANCS THE FOREIGN INVESTOR WOULD AUTOMATICALLY RECEIVE 85 FRANCS INSTEAD OF THE CURRENT 75 FRANCS THE MINISTRY SAID FURTHERMORE IN ANTICIPATION OF A TAX CONVENTION CURRENTLY BEING RENEGOTIATED BETWEEN THE US AND FRANCE US PENSION FUNDS THAT WON'T BE ABLE TO DEDUCT THE FRENCH WITHHOLDING FROM THEIR US TAXES WILL BE ABLE TO RECOUP THE FRENCH WITHHOLDING THE MINISTRY NOTED AS A RESULT US PENSION FUNDS WON'T FACE THE BURDEN OF DOUBLETAXATION IT ADDED 9309200080 930920 BUSINESS BRIEF THOMSON SA REVOLVING CREDIT FACILITY OF 600 MILLION IS ARRANGED FRANCE'S THOMSON SA IS GETTING A REVOLVING 600 MILLION STANDBY CREDIT FACILITY LAUNCHED BY JP MORGAN & CO AND BNP CAPITAL MARKETS LTD THE INVESTMENTBANKING FIRMS ARE LAUNCHING THREE FACILITIES FOR THE STATECONTROLLED DEFENSE AND ELECTRONICS COMPANY ACCORDING TO A STATEMENT BY JP MORGAN THE FIRST FACILITY IS FOR 450 MILLION TO BE REDUCED BY 50 AT THE END OF FOUR YEARS EACH OF THE OTHER TWO FACILITIES IS 75 MILLION AND THEY MATURE AFTER 182 DAYS AND 364 DAYS RESPECTIVELY THE TWO 75 MILLION FACILITIES ARE SEPARATELY RENEWABLE BY EXPRESS CONSENT IN THE LAST 30 DAYS 9309200079 930920 HOSTILE BID FOR PARAMOUNT COULD SPUR QUESTIONS FOR CABLE TV MOGUL MALONE BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL VIACOM INC AND PARAMOUNT COMMUNICATIONS INC ARE LIKELY TO RAISE REGULATORY QUESTIONS ABOUT CABLETV MOGUL JOHN MALONE IF EITHER QVC NETWORK INC OR TURNER BROADCASTING SYSTEM INC MOUNTS A HOSTILE BID FOR PARAMOUNT ADVISERS WORKING ON VIACOM'S PROPOSED 75 BILLION ACQUISITION OF PARAMOUNT POINT OUT THAT MR MALONE CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS INC AND CHAIRMAN OF LIBERTY MEDIA CORP IS A LEADER OF GROUPS THAT HOLD SIGNIFICANT OWNERSHIP STAKES IN BOTH QVC AND TURNER AND THEY WARN THAT ANY BID FOR PARAMOUNT BY QVC OR TURNER COULD RAISE ANTITRUST ISSUES THAT COULD GET A SYMPATHETIC HEARING BY THE CLINTON ADMINISTRATION WHICH HAS BEEN TALKING TOUGH ABOUT BLOCKING ANTICOMPETITIVE MERGERS OVERLAPPING INTERESTS TCI THE NATION'S LARGEST CABLE TV SYSTEM OPERATOR OWNS 23 OF TURNER AND LIBERTY A TCI SPINOFF THAT OWNS SEVERAL CABLE CHANNELS THAT SUPPLY PROGRAMS TO TCI SHARES CONTROL OF A 47 STAKE IN QVC MR MALONE DIDN'T ATTEND FRIDAY'S TURNER BOARD MEETING WHEN THE BOARD VOTED TO EXPLORE A BID FOR PARAMOUNT TCI AND MR MALONE HAVE VIGOROUSLY DISPUTED ALLEGATIONS OF ANTICOMPETITIVE BEHAVIOR IN THE PAST THEY HAVE TYPICALLY CHARACTERIZED SUCH CHARGES AS SOUR GRAPES FROM COMPETITORS A SPOKESMAN FOR TCI DECLINED TO COMMENT AND SAID MR MALONE WASN'T AVAILABLE STILL ONE ADVISER WORKING ON THE PARAMOUNTVIACOM DEAL CALLED QVC AND TURNER PARTS OF THE WHOLE MALONE COMPLEX AND PREDICTED THEY WOULD HAVE TO SURMOUNT REGULATORY ISSUES TO COMPLETE ANY BID ANOTHER ADVISER CALLED MR MALONE THE ENTERTAINMENT EQUIVALENT OF THE MILITARYINDUSTRIAL COMPLEX SUCH REGULATORY ISSUES RARELY PLAYED AN IMPORTANT ROLE IN THE MAJOR TAKEOVER BATTLES OF THE 1980S PARTLY BECAUSE THE REAGAN AND BUSH ADMINISTRATIONS GENERALLY AVOIDED INTERFERING MOST 1980S TAKEOVER CONTESTS WERE DECIDED IN FAVOR OF THE HIGHEST BIDDER AND INDEED THIS ONE MAY YET BE DECIDED THAT WAY TOO BUT THE CLINTON ADMINISTRATION SHOWS SOME INCLINATION TO INTERVENE IN SUCH MATTERS ESPECIALLY IN SCRUTINIZING VERTICAL MERGERS THAT INVOLVE COMBINING PRODUCTION AND DISTRIBUTION AT LEAST ONE MEMBER OF THE ADMINISTRATION ALREADY HAS SHOWN SOME ANTIPATHY TOWARD TCI VICE PRESIDENT AL GORE OPPOSED SOME CABLE INDUSTRY PRACTICES WHILE SERVING AS A TENNESSEE SENATOR AND HE ONCE DESCRIBED TCI AS THE RING LEADER OF THE CABLE COSA NOSTRA AT THE VERY LEAST THE TENOR OF THE EARLY PARAMOUNTVIACOM RESPONSE TO THE RUMORS ABOUT QVC AND TURNER INDICATES HOW MR MALONE MUST FACTOR POLITICAL CONSIDERATIONS INTO HIS DECISION ABOUT WHETHER TO BACK A BID FOR PARAMOUNT POLITICS ARE IMPORTANT FOR TCI BECAUSE CABLE SYSTEMS MUST NEGOTIATE THEIR FRANCHISE AGREEMENTS WITH LOCAL GOVERNMENTS ALSO THE ENTIRE INDUSTRY FACES TOUGHER FEDERAL REGULATION ON RATES AND OTHER MATTERS AT A NEWS CONFERENCE SEPT 13 HELD TO PROMOTE THE VIACOMPARAMOUNT DEAL MR REDSTONE ALLUDED TO THIS ISSUE WHEN HE SAID THAT MR MALONE COULD FACE A POLITICAL PROBLEM IN IGNITING A BATTLE FOR PARAMOUNT TCI IS THE NATION'S LARGEST CABLE TV OPERATOR WITH 10 MILLION OF THE NATION'S CABLE TV HOMES IT AND LIBERTY ALSO OWN PARTIAL STAKES IN MANY CABLE TV CHANNELS SUCH AS DISCOVERY CHANNEL TURNER BROADCASTING BLACK ENTERTAINMENT NETWORK FAMILY CHANNEL AND AMERICAN MOVIE CLASSICS CABLE PROGRAMMERS OFTEN HAVE CONTENDED THAT TCI WITH ACCESS TO THAT MANY HOMES COULD MAKE OR BREAK A CHANNEL THIS MARKET POWER HAS BEEN PARTICULARLY IMPORTANT TO VIACOM WHICH OWNS SEVERAL SUCCESSFUL CABLE CHANNELS INCLUDING THE MTV MUSIC CHANNEL THE SHOWTIME MOVIE CHANNEL AND NICKELODEON VIACOM ALREADY COULD BE HEADED FOR GREATER COMPETITION WITH TCI AND LIBERTY OVER ACCESS TO BOTH CABLE VIEWERS AND PROGRAMMING SHOWTIME'S AGREEMENT TO BE CARRIED OVER TCI CABLE SYSTEMS HAS LAPSED AND THE TWO HAVEN'T YET REACHED A NEW AGREEMENT MEANWHILE THE ENCORE MOVIE CHANNEL 90 OWNED BY LIBERTY HAS BEEN AGGRESSIVELY SIGNING UP PAYTV DEALS WITH HOLLYWOOD STUDIOS FOR FEATURE FILMS TO BEEF UP ENCORE FOR HEADTOHEAD COMPETITION WITH SHOWTIME EARLIER ATTEMPTS TO FORM A PARTNERSHIP BETWEEN ENCORE AND SHOWTIME FAILED JUST LAST WEEK TCI FIRED A SHOT ACROSS VIACOM'S BOW TCI AGREED WITH THE BERTELSMANN MUSIC GROUP A UNIT OF BERTELSMANN AG TO LAUNCH A HYBRID MUSICVIDEO AND HOMESHOPPING CHANNEL THE NEW CHANNEL WOULD COMPETE WITH MTV VIACOM'S MOST IMPORTANT ASSET AND VH1 ANOTHER VIACOM MUSIC CHANNEL ALTHOUGH TCI AND BERTELSMANN DENIED THE CHANNEL WAS AIMED AT UNDERMINING THE VIACOM UNITS SOME ANALYSTS SAID IT COULD WELL HAVE THAT EFFECT AND COULD HAVE CONTRIBUTED TO A BIG DROP LAST WEEK IN VIACOM'S STOCK PRICE 9309200078 930920 AIRPORT SHUTTLES AND LIMOS COMPETE WITH RENTAL CARS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL THE BAD NEWS RENTING CARS AT THE AIRPORT IS MORE EXPENSIVE THE GOOD NEWS FINDING AN ALTERNATIVE IS EASIER SHUTTLE AND LIMOUSINE SERVICES THAT ONCE WERE MOMANDPOP OPERATIONS NOW HAVE NATIONWIDE RESERVATION SYSTEMS CITIES THAT ONCE MADE TRAVELERS TAKE BUSES TO THE TRANSIT STATION NOW HAVE STATIONS NEAR THE AIRPORT MANY TAXIS ARE ACCEPTING CREDIT CARDS AND AIRPORTS ARE STARTING TO WEED OUT SUBSTANDARD CABS AND VANS TRAVEL AGENTS MAY NOT BE MUCH HELP SHUTTLE AND LIMO SERVICES SHOW UP ON SOME COMPUTERRESERVATION SYSTEMS SUCH AS AMERICAN AIRLINES' SABRE BUT NOT OTHERS AND WHEN THEY DO APPEAR IT'S WAY DOWN ON THE SCREEN AND A TRAVEL AGENT ISN'T GOING TO WANT TO SPEND THE TIME FOR A COMMISSION THAT MAY COME TO LESS THAN 2 SAYS RAY MUNDY EXECUTIVE DIRECTOR OF THE AIRPORT GROUND TRANSPORTATION ASSOCIATION TRAVELERS WITH A LITTLE CREATIVITY CAN SAVE MONEY AND EVEN TIME THOUGH YOU COULD PROBABLY PICK UP AN HOUR ON ANY GIVEN BUSINESS TRIP BY USING A LIMOUSINE SERVICE INSTEAD OF RENTING A CAR SAYS BILL BOYD PRESIDENT OF SUNBELT MOTIVATION & TRAVEL INC A DALLAS MEETINGPLANNING FIRM THAT IS BECAUSE MOST LARGE AIRPORTS HAVE MOVED THEIR RENTALCAR LOTS SEVERAL MILES AWAY FROM THE TERMINAL WHEREAS LIMOUSINES PULL RIGHT UP TO THE CURB PARKING A RENTAL CAR CAN EAT UP MORE TIME IN CITIES LIKE WASHINGTON WHERE SOME DOWNTOWN HOTELS CHARGE THEIR GUESTS 22 A DAY FOR PARKING LIMOUSINES ONCE THE DOMAIN OF WEDDINGANDPROM OUTFITS WILLING TO MAKE AN OCCASIONAL AIRPORT RUN ARE INCREASINGLY CATERING SPECIFICALLY TO BUSINESS TRAVELERS INSTEAD OF USING STRETCH LIMOS THE DRIVERS ARE SHOWING UP IN SEDANS LIKE A MERCURY GRAND MARQUIS OR A LINCOLN TOWN CAR INSTEAD OF CHAMPAGNE IN BACK THERE ARE A CELLULAR PHONE AND A LOCAL NEWSPAPER THE PRICES AREN'T MUCH HIGHER THAN A TAXI BOSTON COACH FOR EXAMPLE CHARGES 25 FOR A RIDE TO DOWNTOWN BOSTON FROM LOGAN INTERNATIONAL AIRPORT CARRENTAL COMPANIES AT LOGAN AIRPORT HAVE BEEN OFFERING RATES OF 30 TO 40 A DAY FOR A MIDSIZE CAR WHILE A TAXI TO DOWNTOWN CAN COST FROM 12 TO 20 BUT LIKE CAR RENTALS LIMOUSINE PRICES CAN GET COMPLICATED COMPANIES THAT HAVE FLAT RATES FOR TRIPS DOWNTOWN TEND TO CHARGE AN HOURLY RATE TO SUBURBAN AREAS IF THERE IS A TWOHOUR MINIMUM THE PRICE CAN QUICKLY SURPASS A CAR RENTAL A MANDATORY TIP MAY BE TACKED ON TOO AND FINDING THE RIGHT SERVICE CAN BE TOUGH FOR EXAMPLE THERE ARE MORE THAN 700 LIMOUSINE SERVICES CHARTERED TO SERVE LOS ANGELES INTERNATIONAL AIRPORT AIRPORTS ARE RELUCTANT TO GUIDE PASSENGERS TO ONE OR ANOTHER CHICAGO O'HARE'S RECORDED ADVICE IS TO CHECK THE YELLOW PAGES SO TRAVELERS OFTEN RELY ON TRIAL AND ERROR AFTER YOU'VE BEEN LEFT AT THE AIRPORT THREE OR FOUR TIMES YOU FIND A CAR COMPANY THAT FOR WHATEVER REASON LIKES YOU SAYS BOB HOPE A KNOXVILLE TENN MARKETING EXECUTIVE WHO LIKES LIMO SERVICES BECAUSE THEY LET HIM KEEP TIGHT MEETING SCHEDULES THE EMPLOYEES BECOME YOUR BEST FRIENDS EMPLOYEES OFTEN CAN GET HELP FROM THEIR OWN COMPANY IN CHOOSING LIMOUSINE SERVICES HEWLETTPACKARD CO NEGOTIATES RATES WITH LIMOUSINES JUST LIKE RENTALCAR COMPANIES AND KEEPS A PREFERREDSERVICE LIST FRED SWAFFER THE COMPANY'S CORPORATE TRANSPORTATION MANAGER SAYS THE LIST WAS SHORTENED BY ONE AFTER HEWLETT PACKARD'S CHIEF EXECUTIVE JOHN YOUNG HAD TO HELP A LIMOUSINE DRIVER CHANGE A FLAT TIRE DURING A TRIP FROM THE AIRPORT IT'S UNACCEPTABLE TO ANY TRAVELER BUT PRETTY EMBARRASSING TO HAVE YOUR CEO OUT THERE JACKING UP A CAR SAYS MR SWAFFER LIMOUSINE SERVICES ARE ALSO TRYING TO ORGANIZE THEMSELVES UNDER A QUALITY BANNER CAREY INTERNATIONAL LIMOUSINE INC BASED IN WASHINGTON DC AWARDS FRANCHISES AROUND THE COUNTRY IT THUS COVERS 392 CITIES AND SAYS IT HAS A 99 ONTIME RATE AIRCOMM A NEW CHICAGOBASED RESERVATION SERVICE IS INSTALLING COMPUTERS IN CORPORATE TRAVEL DEPARTMENTS AND ASKING INDEPENDENT LIMOUSINE SERVICES TO FOLLOW ITS 42PAGE PROCEDURES MANUAL WHICH TELLS CHAUFFEURS AMONG OTHER THINGS WHAT COLOR SOCKS TO WEAR TRAVELERS WILLING TO GAMBLE A LITTLE MIGHT CONSIDER THE PLAIN OLD TAXI TAXI FARES IN MANY CITIES HAVEN'T GONE UP IN THREE YEARS THOUGH TAXI GROUPS ACROSS THE NATION ARE PUSHING FOR INCREASES THIS YEAR STILL OVERCHARGING REMAINS A PROBLEM IN NEW YORK AND OTHER CITIES ACCORDING TO ALFRED LAGASSE EXECUTIVE VICE PRESIDENT OF THE INTERNATIONAL TAXICAB AND LIVERY ASSOCIATION AND A TRAVELER IN THE TAXI QUEUE AT WASHINGTON'S NATIONAL AIRPORT HAS A ONETHIRD CHANCE OF LANDING A CAB WITH NO AIR CONDITIONING AIRPORT OFFICIALS SAY NATIONAL LIKE OTHER AIRPORTS IS TRYING TO SET UP A PERMIT SYSTEM TO MAKE SURE ONLY CLEAN PLEASANT TAXIS SHOW UP IN FRONT OF THE TERMINAL AND SOME CAB COMPANIES INCLUDING RED TOP CAB IN ARLINGTON VA ARE TRYING TO BUILD SOME BRAND LOYALTY BY ACCEPTING CREDIT CARDS AND SETTING UP CORPORATE ACCOUNTS ONE GROWTH AREA FOR CAB COMPANIES HAS BEEN MULTIPASSENGERSHUTTLE SERVICES IN WHICH THREE TO SIX STRANGERS SHARE A MINIVAN TO OR FROM THE AIRPORT JEANNE MARSH A BANK TRAINER IN DALLAS THINKS SHUTTLES WORK BETTER GOING TO THE AIRPORT THAN LEAVING IT WHEN THE DRIVER TENDS TO GO FROM TERMINAL TO TERMINAL LOOKING FOR EXTRA PASSENGERS BEFORE HEADING OUT YOU ALMOST GET DIZZY DRIVING AROUND IN CIRCLES SHE SAYS PUBLIC TRANSPORTATION TO AND FROM TOWN IS AN EVEN CHEAPER OPTION COMING IN BELOW 2 ONE WAY AT MOST AIRPORTS MANY CITIES SUCH AS LOS ANGELES AND PHILADELPHIA HAVE BEEN TRYING TO LINK LIGHTRAIL SYSTEMS DIRECTLY TO THEIR AIRPORTS CHICAGO MIDWAY AIRPORT'S NEW ORANGE LINE EL STOP WHICH IS SUPPOSED TO CUT THE TRIP TO DOWNTOWN CHICAGO TO 30 MINUTES FROM 45 WHEN IT OPENS THIS FALL IS A BLOCK FROM THE TERMINAL COMPANIES STILL SPEND FOUR TIMES MORE ON RENTAL CARS THAN THEY DO ON OTHER GROUND TRANSPORTATION ACCORDING TO RUNZHEIMER INTERNATIONAL A ROCHESTER WIS CONSULTING FIRM AND EVEN THOUGH RENTAL RATES ARE EXPECTED TO RISE AGAIN AFTER INCREASING 10 TO 15 OVER THE PAST YEAR IT IS DOUBTFUL THAT ANY SHUTTLE OR TRAIN WILL OVERTAKE RENTAL CARS AS LONG AS BUSINESS TRIPS ARE UNPREDICTABLE 9309200077 930920 BUSINESS BRIEF CHASE MANHATTAN CORP CASHMANAGEMENT SERVICE FOR BANKS IS DISCONTINUED CHASE MANHATTAN CORP SAID IT NO LONGER WILL OFFER PRIVATELABEL CASHMANAGEMENT SERVICES TO BANKS AND AGREED TO RECOMMEND THAT CUSTOMERS SWITCH TO MELLON BANK CORP TERMS OF THE AGREEMENT WEREN'T DISCLOSED PITTSBURGHBASED MELLON WOULDN'T SAY HOW MUCH REVENUE WILL BE GENERATED BY THE ADDITIONAL BUSINESS WHICH INVOLVES HELPING OTHER BANKS WITH CASH COLLECTION AND DISBURSEMENT MELLON WILL BEGIN CONVERTING CHASE CUSTOMERS TO ITS SYSTEMS OCT 1 AND WILL RECEIVE ASSISTANCE FROM NEW YORKBASED CHASE CHASE SAID THE AGREEMENT WON'T AFFECT ITS CORPORATE CASHMANAGEMENT CUSTOMERS IN THE US 9309200076 930920 INTERNATIONAL SOUTH AFRICA'S TRADE SURPLUS JOHANNESBURG SOUTH AFRICA'S TRADE SURPLUS NARROWED TO 184 BILLION RAND 541 MILLION IN AUGUST FROM 191 BILLION RAND A YEAR EARLIER THE NATION'S CENTRAL STATISTICAL SERVICES SAID 9309200075 930920 ATEK MERGER IS APPROVED CINCINNATI ATEK METALS CENTER INC SAID HOLDERS OF ITS CONVERTIBLE PREFERRED STOCK APPROVED A PROPOSAL TO MERGE ATEK WITH AN AFFILIATE OF ROLLED ALLOYS INC THE MERGER WILL BECOME EFFECTIVE TODAY ROLLED ALLOYS IS A CLOSELY HELD DISTRIBUTOR OF HEATRESISTANT AND CORROSIVERESISTANT ALLOYS ATEK SUPPLIES METALLURGICAL PROCESSES AND MATERIALS TO THE AEROSPACE AND CHEMICALPROCESSING INDUSTRIES 9309200074 930920 UNITS OF AHMANSON BAY VIEW CAPITAL TO BUY HOMESTEAD BRANCHES A WALL STREET JOURNAL ROUNDUP THE MAIN BANKING UNITS OF HF AHMANSON & CO AND BAY VIEW CAPITAL CORP ANNOUNCED SEPARATE AGREEMENTS TO PURCHASE BRANCHES OF HOMESTEAD SAVINGS THE HOMESTEAD FINANCIAL CORP UNIT SEIZED BY FEDERAL REGULATORS HOME SAVINGS OF AMERICA THE PRIMARY SUBSIDIARY OF AHMANSON IRWINDALE CALIF SAID IT AGREED TO ACQUIRE FROM THE RESOLUTION TRUST CORP FOUR HOMESTEAD BRANCHES IN NORTHERN CALIFORNIA WITH TOTAL SAVINGS DEPOSITS OF ABOUT 178 MILLION BAY VIEW FEDERAL BANK THE MAIN UNIT OF BAY VIEW CAPITAL SAN MATEO CALIF SAID IT AGREED TO BUY FOUR HOMESTEAD BRANCHES ALSO IN NORTHERN CALIFORNIA WITH DEPOSITS OF 851 MILLION RESOLUTION TRUST THE FEDERAL AGENCY THAT OVERSEES THE GOVERNMENT'S THRIFTBAILOUT EFFORTS TOOK OVER HOMESTEAD SAVINGS FROM HOMESTEAD FINANCIAL MILBRAE CALIF IN NOVEMBER 9309200073 930920 INTERNATIONAL DAIMLERBENZ REPORTS FIRSTEVER LOSS REFLECTING NEW ACCOUNTING LOWER SALES BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY DAIMLERBENZ AG BOUND BY A NEW SET OF STRICT US DISCLOSURE RULES WAS FORCED TO REPORT ITS FIRST LOSS SINCE WORLD WAR II THE LOSS WOULDN'T HAVE APPEARED IN THE GERMAN AUTO CONCERN'S SIXMONTH PROFITANDLOSS ACCOUNT WITHOUT THE STRINGENT STANDARDS IMPOSED BY THE US SECURITIES AND EXCHANGE COMMISSION DAIMLER OFFICIALS SAID THE SEC REQUIREMENTS WERE A PRECONDITION FOR THE COMPANY'S SHARE LISTING NEXT MONTH ON THE NEW YORK STOCK EXCHANGE DAIMLER SWUNG TO A 949 MILLION MARK 592 MILLION GROUP NET LOSS UNDER THE US SYSTEM IN THE FIRST HALF FROM A NET PROFIT OF 1017 BILLION MARKS A YEAR AGO UNDER GERMANY'S LESSTRANSPARENT RULES THE COMPANY SHOWED A SMALL NET PROFIT ANALYSTS SAID THE RARE SITUATION DRAWS UNWELCOME ATTENTION TO THE YAWNING GAP BETWEEN US AND GERMAN ACCOUNTING STANDARDS DAIMLER CHAIRMAN EDZARD REUTER CONCEDED THAT THE COMPANY USED NONOPERATING EARNINGS TO CREATE AN ARTIFICIAL NET PROFIT HE SAID THIS WAS A LEGITIMATE GERMAN PRACTICE SPEAKING FRANKLY WE MADE USE OF A GERMAN ACCOUNTING RULE THAT ALLOWED US TO RELEASE RESERVES MR REUTER SAID AT A NEWS BRIEFING DAIMLER IS THE FIRST GERMAN COMPANY TO ACCEPT SEC ACCOUNTING REQUIREMENTS AND THUS THE FIRST TO WIN THE PRESTIGE OF A LISTING ON THE BIG BOARD OTHER GERMAN COMPANIES UNWILLING TO ABANDON GERMANY'S FLEXIBLE ACCOUNTING EITHER HAVE BEEN REJECTED BY THE SEC OR ARE UNWILLING TO SEEK A LISTING UNDER SEC PRESSURE DAIMLER ALSO RELEASED FIGURES NEVER BEFORE DISCLOSED BY A GERMAN COMPANY FOR INSTANCE IT DUG INTO ITS FAMOUSLY DEEP POCKETS FOR 162 BILLION MARKS IN RESERVES IN THE FIRST HALF TO FASHION A PROFIT OF 168 MILLION MARKS UNDER THE GERMAN SYSTEM THAT'S STILL A FAR CRY FROM LAST YEAR'S FIRSTHALF 102 BILLIONMARK PROFIT UNDER GERMAN ACCOUNTING IN A BAD YEAR LIKE 1993 ALL GERMAN COMPANIES ARE RELEASING RESERVES TO IMPROVE THEIR NET PROFIT SAID DAIMLER'S CHIEF FINANCIAL OFFICER GERHARD LIENER MANY GERMAN COMPANIES WOULD SHOW WEAKER EARNINGS NOW IF THEY APPLIED US STANDARDS SAID HORST GREVEN INVESTMENT ANALYST AT MERCK FINCK & CO IN DUESSELDORF GERMANY DAIMLER REVISED ITS EARNINGS FOR THE YEARS 19901992 FOR THE SEC SO US INVESTORS CAN STUDY THE GROUP'S PAST PERFORMANCE THOSE SHOW THE GROUP'S 1992 NET PROFIT FELL TO 135 BILLION MARKS UNDER SEC RULES AGAINST THE 145BILLIONMARK NET REPORTED UNDER GERMAN RULES THE USGERMAN ACCOUNTING SPLIT ALSO WAS LARGE IN 1990 WHEN NET PROFIT TOTALED 884 MILLION MARKS UNDER SEC CALCULATIONS AND 180 BILLION MARKS UNDER GERMAN RULES THAT DISCREPANCY STEMMED FROM DIVERGENT TAX WRITEOFF AND PENSION REGULATIONS EARNINGS WILL PLUNGE FURTHER IN THE THIRD QUARTER UNDER US DISCLOSURE RULES AS THE COMPANY TAKES CHARGES FOR AN AMBITIOUS PROGRAM OF JOB CUTS LEADING TO A CONSIDERABLY DEEPER NET LOSS FOR THE NINEMONTH REPORT MR LIENER SAID THOUGH MR LIENER SAID DAIMLER EXPECTS TO REACH THE ABSOLUTE BOTTOM WITH ITS NINEMONTH LOSS ANALYSTS ACCEPTED THAT AS AN EFFORT AT FINANCIAL MARKETING AHEAD OF THE OCT 5 BIG BOARD LISTING MR REUTER ALSO ANNOUNCED IN AN ESPECIALLY PAINFUL MOVE THAT DAIMLER'S GROUPWIDE WORK FORCE WILL HAVE SHRUNK 20 OR MORE THAN 40000 JOBS WORLDWIDE IN THE 19921994 PERIOD SAVINGS OF EIGHT BILLION MARKS HAVE BEEN EARMARKED BY 1997 HE SAID FUTURE PLANS DON'T EXCLUDE SHUTTING ENTIRE PLANTS WITHIN GERMANY INCLUDING SOME AT THE MERCEDESBENZ AG MOTOR DIVISION AND THE DEUTSCHE AEROSPACE AG UNIT MR REUTER SAID MERCEDES WILL ABSORB MOST OF THE PAIN WITH 27000 OR 73 OF ITS 365000 JOBS TARGETED BY 1994 DAIMLER'S SIXMONTH GROUPWIDE SALES PLUNGED 13 TO 4164 BILLION MARKS FROM 481 BILLION A YEAR AGO ORDERS AND SALES FELL IN EACH OF DAIMLER'S DIVISIONS AT MERCEDES ALONE SALES PLUMMETED 16 OR 55 BILLION MARKS TO 291 BILLION MARKS WHILE PASSENGER CAR OUTPUT COLLAPSED 26 TO 209350 VEHICLES WHILE MR REUTER NOTED THAT ORDERS AT MERCEDES ROSE 30 IN THE MAYAUGUST PERIOD FROM A YEAR EARLIER ANALYSTS WEREN'T IMPRESSED THE FIGURES COMPARE WITH AN UNUSUALLY LOW BASE LAST YEAR WHEN DEMAND CRUMBLED THEY SAID SEPARATELY DEUTSCHE BANK AG GERMANY'S LARGEST BANK SAID IT MAY OFFER 3 OF DAIMLERBENZ'S SHARE CAPITAL FROM ITS PORTFOLIO TO US INVESTORS AFTER DAIMLER SHARES ARE LISTED IN NEW YORK 9309200072 930920 INTERNATIONAL CZECH BANKING SECTOR RESERVES FRANKFURT CURRENT GROSS RESERVES OF THE ENTIRE CZECH BANKING SECTOR AMOUNT TO 56 BILLION THE STATE NEWS AGENCY CTK REPORTED QUOTING THE HEAD OF THE CENTRAL BANK CZECH NATIONAL BANK GOVERNOR JOSEF TOSOVSKY TOLD PARLIAMENT THAT THE CENTRAL BANK'S OWN HARD CURRENCY RESERVES STAND AT 31 BILLION MR TOSOVSKY SAID THE LEVEL OF GROSS RESERVES IN THE BANKING SYSTEM AS A WHOLE IS A RECORD THAT WAS UNMATCHED EVEN IN THE 74YEAR HISTORY OF THE CZECHOSLOVAK FEDERATION WHICH DISINTEGRATED JAN 1 9309200071 930920 POLITICS & POLICY THE CLINTON HEALTH PLAN IN HEALTHREFORM BATTLE INSURERS ARE RESISTING WHITE HOUSE EFFORTS TO FIT THEM WITH A BLACK HAT BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL GRADISON PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA RECALLS THE MESSAGE HE RECEIVED FROM CLINTON HEALTH GURU IRA MAGAZINER IN FEBRUARY HE TOLD ME THAT THE WHITE HOUSE'S POLLSTERS HAD FOUND THAT ATTACKING THE INDUSTRY WOULD HELP SELL THE PRESIDENT'S HEALTHCARE PACKAGE MR MAGAZINER IS QUICK TO ADD THAT HE ALSO TOLD MR GRADISON THAT DESPITE THE POLLSTERS' FINDINGS THE WHITE HOUSE HAD NO INTENTION OF GOING AFTER ANYBODY WE'RE INTERESTED IN A POSITIVE DIALOGUE HE SAYS NONETHELESS SEVEN MONTHS AFTER THEIR CONVERSATION DIALOGUE HAS TURNED INTO DIATRIBE ON BOTH SIDES WAR HAS BROKEN OUT BETWEEN THE WHITE HOUSE AND THE NATION'S INSURERS A WAR THAT IS ALREADY BEING FOUGHT IN EXPENSIVE TELEVISION COMMERCIALS FOR EACH SIDE AND ONE THAT IS BOUND TO INTENSIFY AFTER MR CLINTON FORMALLY UNVEILS HIS PROPOSAL LATER THIS WEEK AS POLITICAL VILLAINS GO THE INSURANCE INDUSTRY IS A DANDY OTHER POLLS CONFIRM THE FINDINGS OF THE WHITE HOUSE EXPERTS THAT THE PUBLIC REGARDS THE INDUSTRY AS A MAJOR CULPRIT IN THE NATION'S HEALTHCARE WOES SO UNPOPULAR IS THE INSURANCE INDUSTRY THAT WHITE HOUSE OFFICIALS ARE EVEN USING IT TO TAR OTHER OPPONENTS SUGGESTING FOR EXAMPLE THAT ONE REASON THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS HAS BLASTED THE PRESIDENT'S PLAN IS THAT MANY OF ITS MEMBERS ARE IN THE INSURANCE INDUSTRY THE SMALL BUSINESS GROUP SAYS THAT FEWER THAN 15000 OF ITS 610000 MEMBERS ARE IN THE INDUSTRY MOREOVER ANY COMPREHENSIVE HEALTHCARE OVERHAUL COULD HARDLY FAIL TO TAKE ON THE INSURANCE INDUSTRY PROPONENTS OF THE CLINTON PLAN ACKNOWLEDGE THAT THE LEAST EFFICIENT AND FLEXIBLE INSURERS COULD WELL FIND THEMSELVES KNOCKED OUT OF THE BUSINESS UNDER A REFORMED SYSTEM BUT THE BATTLE IS HARDLY ONESIDED ANTICIPATING THIS DAY WOULD COME THE INDUSTRY HAS BEEN STEADILY INCREASING ITS POLITICAL CONTRIBUTIONS TO MEMBERS OF CONGRESS AND MR GRADISON'S 350MEMBER TRADE ASSOCIATION HAS ALREADY LAUNCHED A 17 MILLION ADVERTISING DRIVE TO CONVINCE PEOPLE THAT THE COVERAGE PROVIDED BY THE PRESIDENT'S PROPOSAL WOULDN'T PROTECT THEM AS MUCH AS THEIR CURRENT POLICIES THE GOVERNMENT MAY FORCE US TO PICK FROM A FEW HEALTHCARE PLANS DESIGNED BY GOVERNMENT BUREAUCRATS SAYS A TELEVISON SPOT RUNNING IN WASHINGTON LOS ANGELES NEW YORK AND ON THE CABLE NEWS NETWORK IF WE LET THE GOVERNMENT CHOOSE WE LOSE ON FRIDAY THE DEMOCRATIC NATIONAL COMMITTEE ANNOUNCED THAT IT WOULD BEGIN AIRING ITS OWN AD TO COUNTER THE INSURERS' MISCHARACTERIZATIONS AND DISTORTIONS FAMILIES USA A CONSUMER GROUP THAT IS SUPPORTING THE WHITE HOUSE ALSO HAS PUT TOGETHER A TV COMMERCIAL CHALLENGING THE INSURERS' ASSERTIONS THAT'S RIGHT THE BIG INSURANCE COMPANIES ARE SPENDING MILLIONS TO PROTECT THEIR PROFITS AND UNDERMINE HEALTHCARE REFORM IT DECLARES AND A COALITION OF CONSUMER GROUPS BUSINESSES LABOR UNIONS AND OTHERS IS DEMANDING THAT THE INSURERS' COMMERCIAL BE PULLED FROM THE AIR WHITE HOUSE OFFICIALS ARE IRRITATED THAT THE INSURERS BEGAN THEIR ONSLAUGHT EVEN BEFORE THE PRESIDENT'S SPEECH THEY JUMPED THE GUN WHICH I DON'T THINK IS VERY SMART SAYS PAUL BEGALA A POLITICAL ADVISER TO THE PRESIDENT FOR THEIR PART THE INSURERS NOTE THAT WHILE HILLARY RODHAM CLINTON EXTENDED AN OLIVE BRANCH TO THE AMERICAN MEDICAL ASSOCIATION IN JUNE SHE DID SO LARGELY BY CRITICIZING THE INSURANCE INDUSTRY'S MICROMANAGEMENT OF DOCTORS A WHITE HOUSE BRIEFING BOOK THAT WAS HANDED OUT TO LAWMAKERS BEFORE THE AUGUST CONGRESSIONAL RECESS ALSO SINGLES OUT AN INSURANCE INDUSTRY THAT RUNS ROUGHSHOD OVER CONSUMERS AND SMALL BUSINESSES WE DIDN'T ATTACK UNTIL WE HAD BEEN TARGETED SAYS JULIA NORRELL AN ACTIVE CLINTON SUPPORTER DURING THE PRESIDENTIAL CAMPAIGN WHO IS NOW A REGISTERED LOBBYIST FOR THE HEALTH INSURANCE ASSOCIATION REGARDLESS OF WHICH SIDE INSTIGATED THE FIGHT IT'S CLEAR THAT THE CLINTON CAMP ISN'T ABOUT TO LET OPPONENTS' CHARGES GO UNANSWERED FOR VERY LONG SOMETHING IT FAILED TO DO IN THE DEBATE OVER THE PRESIDENT'S ECONOMIC PACKAGE EARLIER THIS YEAR THIS TIME WE'RE GOING TO DO ANYTHING WE CAN TO STOP THOSE WHO HAVE AN INTEREST IN PROTECTING THE STATUS QUO SAYS DEMOCRATIC MEDIA CONSULTANT MANDY GRUNWALD WHO PRODUCED THE DEMOCRATS' TV AD BUT PORTRAYING THE INTEREST GROUPS AS OBSTACLES TO CHANGE MAY NOT BE SO SIMPLE RATHER THAN REJECTING THE PRESIDENT'S ENTIRE PROPOSAL MANY OF THE ADMINISTRATION'S ADVERSARIES ARE TAKING A MORE REASONABLE TACK CONTENDING THAT THEY REALLY ARE FOR HEALTH REFORM AND IN SOME CASES ARE IN AGREEMENT WITH MUCH OF THE ADMINISTRATION'S BLUEPRINT MR GRADISON'S GROUP FOR EXAMPLE ARGUES IN A NEW PRINT ADVERTISEMENT AIMED AT WASHINTON POLICY MAKERS THAT IT FAVORS MANY OF THE MAIN ELEMENTS OF THE CLINTON PROPOSAL CRADLETOGRAVE HEALTH COVERAGE FOR ALL AMERICANS REGARDLESS OF WHETHER PEOPLE GET SICK ARE UNEMPLOYED OR CHANGE JOBS MANDATORY CONTRIBUTIONS FROM ALL EMPLOYERS TOWARD THEIR WORKERS' HEALTH PREMIUMS GOVERNMENT SUBSIDIES FOR THOSE WHO CAN'T AFFORD COVERAGE AND REDUCED PAPERWORK AND MORE PRICE AND QUALITY DATA FOR CONSUMERS TO THE SURPRISE OF THOSE WHO WANT TO MAKE US THEIR SCAPEGOAT HERE'S WHERE WE STAND SAYS THE AD THE INSURANCE ASSOCIATION'S PROBLEMS WITH THE CLINTON SCHEME LIE MOSTLY IN THE DEGREE OF GOVERNMENT CONTROL THAT WOULD BE EXERTED OVER THE NEW HEALTH SYSTEM THE INSURERS OPPOSE FLAT COMMUNITY RATING WHEREBY THEY WOULDN'T BE ALLOWED TO CHARGE PEOPLE HIGHER PREMIUMS BASED ON FACTORS SUCH AS AGE AND SMOKING HABITS THE ADMINISTRATION SAYS IT WOULD MAKE RISK ADJUSTMENTS TO COMPENSATE THOSE HEALTH PLANS THAT TAKE ON A DISPROPORTIONATE SHARE OF COSTLY CLIENTS BUT MR GRADISON IS SKEPTICAL THAT THE SKETCHY SOLUTION OUTLINED IN A DRAFT OF THE CLINTON PROPOSAL WOULD WORK THE GROUP ALSO OPPOSES GOVERNMENTIMPOSED CAPS ON HOW MUCH INSURERS COULD RAISE THEIR PREMIUMS EACH YEAR LABELING THESE LIMITS ARTIFICIAL CONTROLS ON PRICE AND IT OBJECTS TO THE IDEA THAT PEOPLE WOULD PURCHASE THEIR COVERAGE EXCLUSIVELY THROUGH REGIONAL ALLIANCES THE RESTRICTION THAT PROMPTED ITS TV AD ABOUT CHOICE THE WHITE HOUSE FOR ITS PART ARGUES THAT ITS PLAN WOULD INCREASE RATHER THAN DIMINISH MOST PEOPLE'S ABILITY TO CHOOSE MR GRADISON'S GROUP DOESN'T SPEAK FOR THE ENTIRE INDUSTRY THE NATION'S FIVE BIGGEST INSURERS AETNA LIFE & CASUALTY CO CIGNA CORP METLIFE PRUDENTIAL INSURANCE CO OF AMERICA AND TRAVELERS CORP HAVE FORMED THEIR OWN COALITION WHICH HAS BEEN MORE RESTRAINED IN ITS COMMENTS ABOUT THE CLINTON PROPOSAL TO HELP PLOT THEIR POLITICAL STRATEGY THE FIVE BIG INSURERS HAVE HIRED OLDAKER RYAN & LEONARD A NEWLY FORMED CONSULTING FIRM THAT INCLUDES THE FORMER STAFF DIRECTOR FOR THE HOUSE WAYS AND MEANS COMMITTEE AND A FORMER AIDE TO THE ENERGY AND COMMERCE COMMITTEE THE INSURANCE ASSOCIATION MEANWHILE EARLY THIS YEAR TAPPED MR GRADISON WHO HAD BEEN A WIDELY RESPECTED REPUBLICAN MEMBER OF CONGRESS FOR NEARLY TWO DECADES IT ALSO HAS HIRED GODDARD CLAUSSEN/FIRST TUESDAY A MALIBU CALIF MEDIA FIRM THAT SUCCESSFULLY BEAT BACK INITIATIVES OPPOSED BY THE INSURANCE INDUSTRY IN CALIFORNIA AND ARIZONA UNDER FIRST TUESDAY'S DIRECTION THE INSURANCE ASSOCIATION IS BUILDING A GRASSROOTS ORGANIZATION CALLED THE COALITION FOR HEALTH INSURANCE CHOICES TO SUPPORT THE INSURERS' BRAND OF REFORM IT WAS ALSO FIRST TUESDAY THAT CREATED THE CHOICE TV AD WHICH IT WILL CARRY INTO NEW MARKETS SOON TARGETING SPECIFIC MEMBERS OF CONGRESS MR GRADISON SAYS THE INSURERS KNOW THEY WILL TAKE SOME HITS IN THE FIGHT WE'RE BEING ACCUSED OF EVERYTHING EXCEPT CHILD ABUSE HE SAYS ADDING THAT WHEN PRESIDENT CLINTON FORMALLY UNVEILS HIS PLAN WEDNESDAY NIGHT WE EXPECT TO GET IT RIGHT BETWEEN THE EYES 9309200070 930920 TRAVEL INDUSTRY SPEEDS UP CHECKINS AND CHECKOUTS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL IT IS THE TRAVEL INDUSTRY'S COUNTERREVOLUTION THE CHECKIN COUNTER THAT IS WHERE ONTHERUN TRAVELERS ALL TOO OFTEN DO A SLOW BURN HOTELS CARRENTAL COMPANIES AND AIRLINES ARE ALL STEPPING UP EFFORTS TO FACILITATE CHECKING IN AND OUT AT STAKE ARE ARMIES OF COUNTERPHOBIC BUSINESS TRAVELERS WHO WILL PAY PREMIUM PRICES FOR SWIFT SERVICE CLERKS ARE UNDER A LOT OF STRESS AND ARE OFTEN RUDE SAYS JOHN JO A PETROLEUM ENGINEER AS HE PUNCHES HIS MILEAGE INFORMATION INTO A NATIONAL CAR RENTAL SYSTEMS INC SMARTKEY COMPUTER THE MACHINE AT HOBBY AIRPORT IN HOUSTON ENABLES MR JO TO QUICKLY RETURN HIS CAR WITHOUT TALKING TO A CLERK THE LESS CONTACT THE BETTER HE SAYS AS HE RACES FOR HIS PLANE EXPRESS SERVICE ITSELF GENERALLY REQUIRES TRAVELERS TO SUPPLY INFORMATION IN ADVANCE SUCH AS RESERVATION DATES CREDITCARD NUMBERS OR CHOICE OF CAR AIRLINE SEAT OR ROOM BUT OVER THE YEARS THE SERVICE HAS HAD MIXED SUCCESS WITH THE IDEA FOR ONE THING PLENTY OF TRAVELERS PARTICULARLY TOURISTS PREFER A FRIENDLY CLERK WITH INFORMATION ON DIRECTIONS RESTAURANTS AND OTHER TRAVEL NEEDS IN ADDITION SOME IDEAS HAVE BEEN DUDS HOTELS FOR EXAMPLE HAVE TRIED WITHOUT MUCH SUCCESS TO CHECK IN GUESTS AT CARRENTAL COUNTERS THE TECHNOLOGY AMONG OTHER THINGS HAS BEEN A PROBLEM EVEN GOOD IDEAS DON'T WORK LIKE THEY SHOULD MANY FLIERS WITH BOARDING PASSES FEARING THEY WILL BE LEFT BEHIND CREATE UNNECESSARY LINES BY CHECKING IN AT THE GATE ONLY THOSE PASSENGERS WITH PASSES WHO ARRIVE LESS THAN 10 MINUTES BEFORE DEPARTURE ARE REQUIRED TO CHECK IN BUT THESE COUNTERBYPASS PROGRAMS AS THEY ARE CALLED WILL LIKELY BECOME MORE COMMON AS CARRENTAL COMPANIES AND HOTELS OPEN THEM UP TO MORE PEOPLE AND AS AIRLINES EXPERIMENT WITH NEW IDEAS ALAMO RENT A CAR IS ROLLING OUT EXPRESS PLUS THIS MONTH EXCLUSIVELY FOR CORPORATE CLIENTS IN 10 CITIES INCLUDING MIAMI CHICAGO AND PHILADELPHIA CUSTOMERS WHO SWEEP THEIR CREDIT CARD THROUGH A MACHINE AT THE RENTAL COUNTER WILL BE ABLE TO GET THEIR RENTAL CONTRACT AND PARKINGSPACE NUMBER DIRECTLY FROM THE MACHINE OTHER CARRENTAL COMPANIES ARE TRYING TO INCREASE THE USE OF EXISTING PROGRAMS IN JULY AVIS INC WAIVED ITS 50 ANNUAL FEE FOR ITS PREFERRED SERVICE CLUB MAJOR RIVALS INCLUDING HERTZ CORP'S AND GENERAL MOTORS CORP'S NATIONAL SUBSIDIARY CHARGE FEES FOR THEIR EXPRESS SERVICE PREFERRED MEMBERS DEPENDING ON THE LOCATION ARE EITHER DROPPED OFF AT THEIR RENTAL CAR DIRECTLY IN AVIS BUSES OR ARE SERVED AT A SPECIAL CHECKIN LINE AT THE RENTAL COUNTER AVIS HOPES THAT ELIMINATING THE FEE WILL ENCOURAGE MORE CUSTOMERS TO USE THE SERVICE ONLY 10 TO 13 DO SO NOW BUT IT ALSO WALKS A FINE LINE IF IT EXPANDS TOO MUCH WE DON'T WANT TOO MANY PEOPLE IN THE PREFERRED AREA BECAUSE THEN IT WOULD BEGIN TO LOOK LIKE THE COUNTER SAYS JAMES COLLINS AVIS' EXECUTIVE VICE PRESIDENT THE HOTEL INDUSTRY WHICH HAS HAD EXPRESS CHECKOUT SINCE THE EARLY 1980S IS NOW MOVING AGGRESSIVELY ON THE FRONT END WITHIN THE LAST YEAR HILTON HOTELS CORP HYATT HOTELS CORP MARRIOTT CORP AND SHERATON A UNIT OF ITT CORP HAVE ALL LAUNCHED VARIATIONS OF FREE EXPRESS CHECKIN AMID BROADER EFFORTS TO MAKE THE FRONT DESK MORE EFFICIENT CUSTOMERS DON'T NEED TO BE GREETED AT THE DOOR AND HAVE FLOWERS THROWN AT THEM BUT THEY NEED TO HAVE SOME SORT OF POSITIVE EXPERIENCE WHEN THEY ARRIVE SAYS CHRIS WICHERS VICE PRESIDENT OF FRONTOFFICE OPERATIONS FOR HILTON WHOSE ZIPIN SERVICE BEGAN EARLY THIS YEAR AND IS USED BY 80 OF ALL GUESTS TRAVELING ON BUSINESS EXPRESS CHECKIN GUESTS ARE USUALLY SERVED IN A SEPARATE LINE AT THE FRONT DESK A CLERK ACCEPTS THE GUEST'S CREDIT CARD AND HANDS OVER AN ENVELOPE THAT IS STUFFED WITH A CONTRACT AND A ROOM KEY MARRIOTT'S PROGRAM IS SLIGHTLY MORE AMBITIOUS THE HOTEL CHAIN OFFERS EXPRESS CHECKIN TO ALL GUESTS WHO RESERVE A ROOM WITH A CREDIT CARD WHEREAS MOST OTHER HOTELS REQUIRE THAT GUESTS REQUEST THE SERVICE BUT THE SERVICE ISN'T FOR EVERYONE HYATT SAYS LESS THAN 10 OF ITS GUESTS USE ITS 1800 EXPRESS CHECKIN LINE ONE OBSTACLE FOR QUICK CHECKIN IS THAT MANY GUESTS USE THEIR FRONTDESK VISIT TO FINAGLE A LOWER RATE OR GET AN UPGRADE WHAT'S MORE SOME TRAVELERS SAY THEY AVOID HOTELS WITH RAPID CHECKIN BECAUSE OF THE APPEARANCE OF LOOSE SECURITY STEVE LANDES A NEW YORK LINGERIE SALESMAN WHO USES EXPRESS SERVICE FOR RENTAL CARS BUT NOT HOTELS EXPLAINS EVERYONE KNOWS THAT TRAVELERS HAVE MONEY AND EXPRESS CHECKIN JUST MAKES HOTELS LESS SECURE HOTEL EXECUTIVES DISPUTE THAT NOTING THAT THE DISTRIBUTION OF KEYS HAS NOT BECOME MORE RELAXED AIRLINES FOR THEIR PART ARE MAKING INCREMENTAL CHANGES IN RELIEVING AIRPORT LINES UAL CORP'S UNITED AIRLINES NOW PERMITS FULLFARE TRAVELERS FLYING BETWEEN CHICAGO AND FIVE OTHER AIRPORTS TO PICK UP THEIR RESERVED TICKETS AT THE GATE INSTEAD OF THE TICKET COUNTER IN A TEST PROGRAM IN ALBUQUERQUE NM AMR CORP'S AMERICAN AIRLINES IS ISSUING BOARDING PASSES AT THE AIRPORT CURB INSTEAD OF THE TICKET COUNTER OR GATE AMERICAN IS ALSO TRYING TO DEVISE HANDHELD COMPUTERS THAT WILL ENABLE GATE AGENTS TO DISTRIBUTE BOARDING PASSES TO PASSENGERS AT THE GATE HERTZ AND OTHER CARRENTAL COMPANIES ALREADY USE THE COMPUTERS TO CHECK IN CARS AND TROPICANA RESORT AND CASINO HOTEL IN LAS VEGAS USES THEM TO CHECK IN GUESTS IN ANOTHER RECENT INDUSTRY INNOVATION AIRPORT TICKET COUNTERS GENERALLY SHOULD BE EASIER TO AVOID AS TICKETS ARE INCREASINGLY DISTRIBUTED LIKE CASH FROM AUTOMATICTELLER MACHINES PASSENGERS CAN BUY TICKETS AS USUAL THROUGH A TRAVEL AGENT OR AIRLINE THEN PICK THEM UP AT TICKET PRINTERS THAT ARE CROPPING UP IN SHOPPING MALLS AND OTHER LOCATIONS INDUSTRY FUTURISTS ENVISION THE DAY WHEN TRAVELERS WILL PRINT THEIR OWN TICKETS ON PERSONAL COMPUTERS WHEN CARRENTAL COMPANIES WILL DELIVER AUTOS DIRECTLY TO DRIVERS AND WHEN HOTEL GUESTS WILL UNLOCK THEIR ROOMS WITH PERSONAL CREDIT CARDS A CLERKLESS TRIP WOULD BE NIRVANA SAYS HARRIS DIAMOND A NEW YORK PUBLICRELATIONS EXECUTIVE WHO HAS SETTLED FOR THE HERTZ GOLD CLUB UNTIL UTOPIA ARRIVES SOME TRAVELERS IF NECESSARY DEVISE THEIR OWN COUNTERBYPASS PROGRAMS AT THE NATIONAL CARRENTAL LOT AT HOBBY AIRPORT AGENT LOUISE FIELDS DEMONSTRATES HOW TO RETURN A RENTAL BY USING THE SMARTKEY MACHINE A CUSTOMER WHO HAS JUST PARKED HIS CAR BOLTS INTO THE OFFICE AND WITHOUT EVEN LOOKING AT SMARTKEY FLINGS HIS CONTRACT ACROSS THE COUNTER YELLS SEND ME THE BILL AND DASHES BACK OUT THE DOOR AND ONTO THE DEPARTING SHUTTLE THIS IS ONE WAY FOR A QUICK RETURN MRS FIELDS SAYS MOTIONING TOWARD THE MACHINE AND THAT'S ANOTHER 9309200069 930920 LETTERS TO THE EDITOR THE BROTHERS HUTCHINS YOUR AUG 18 PAGE ONE ARTICLE THE ROAD TAKEN TAKES JOURNALISTIC LICENSE TO AN UNFORTUNATE EXTREME ALL WITH THE GOAL OF MAKING TWO BROTHERS INTO A MORALITY TALE FOR AN ENTIRE GENERATION FRANKLY THE TECHNIQUES NEEDED TO MAKE TWO COMPLEX INDIVIDUALS FIT THAT MOLD BORDER ON THE EXPLOITATIVE YOUR REPORTER ASKED MY BROTHER ALEX AND ME MANY GENERAL PHILOSOPHICAL QUESTIONS ABOUT OUR VIEWS ON BUSINESS AND SOCIAL ISSUES IN THE ARTICLE HE USED OUR ANSWERS TO THESE PHILOSOPHICAL QUESTIONS WHOLLY OUT OF CONTEXT BY REPRESENTING THEM AS ANSWERS TO QUESTIONS ABOUT SPECIFIC EVENTS IN OUR LIVES YOU ALSO WHOLLY DISTORTED THE NATURE OF OUR PERSONAL RELATIONSHIP OVER OUR ADULT LIVES WE HAVE ENJOYED AN ONGOING CONVERSATION ABOUT DIFFERENCES IN OUR WORLD VIEWS AND AMBITIONS THIS CONVERSATION HAS ALWAYS BEEN CONDUCTED IN THE CONTEXT OF AN AFFECTIONATE AND RESPECTFUL PERSONAL RELATIONSHIP WE EMPHASIZED THIS BUT YOU WERE APPARENTLY INTENT ON MAGNIFYING OUR PHILOSOPHICAL DIFFERENCES INTO AN IMAGINED RUPTURE IN OUR RELATIONSHIP REGARDING COMMENTS ABOUT ANCHOR ADVANCE PRODUCTS INC THE ARTICLE THE ROAD NOT TAKEN I CAME TO ANCHOR FOR TWO REASONS FIRST TO SEE IF THE THEORY ABOUT QUALITY MANAGEMENT I'VE TAUGHT IN CLASSROOMS REALLY WORKS AND SECOND BECAUSE I REALLY THOUGHT I COULD HELP THE PEOPLE WHO WORK AT ANCHOR I BELIEVED THEN AND I BELIEVE NOW THAT THE LEADERS OF THIS COMPANY ARE COMMITTED TO QUALITY IMPROVEMENT AND EMPLOYEE IMPROVEMENT AND I WAS HIRED FOR THE SOLE PURPOSE OF MAKING THAT HAPPEN AFTER 11 MONTHS HERE I CAN SAY THAT QUALITY MANAGEMENT DOES IN FACT WORK AND THE PEOPLE BOTH INDIVIDUALLY AND AS A GROUP CAN MAKE A DIFFERENCE ANCHOR AND ITS PEOPLE WILL CONTINUE TO GROW AND PROSPER BOTH BROTHERS REPEATEDLY CONVEY THROUGH THEIR OWN QUOTES THE CONCEPT OF WINNERS AND LOSERS ALEX HUTCHINS AS THE PERENNIALLY ISSUECONSCIOUS FINANCIAL UNDERDOG AND GLENN THE FOCUSEDONOUTCOME CAPITALIST PERHAPS THIS IS INDICATIVE OF A PERVASIVE ATTITUDE THROUGHOUT THIS COUNTRY IF NOT GLOBALLY THAT IN ORDER FOR ONE TO WIN THERE IS INNATELY ANOTHER WHO WILL LOSE AN ATTITUDE SHIFT ON THE PART OF THE HUTCHINS BROTHERS WOULD DO MORE FOR THEIR RESPECTIVE CAUSES THAN SERVING AS A CORPORATE CHEERLEADER ON A PERCEIVED FUTILE MISSION OR IMPOSING COST CONTROL AND PRODUCTIVITY DISCIPLINE THROUGH LBO METHODS AND SERVING ON A CHARITY BOARD DIFFICULT BECAUSE IT INVOLVES LEAVING BEHIND PERSONAL AGENDAS POWERFUL BECAUSE THIS IS WHERE ALL REAL CHANGE BEGINS IF WE USE THEIR EXAMPLE AS A MIRROR FOR PREVALENT BELIEFS IT BECOMES OBVIOUS HOW INSIDIOUS THE WIN/LOSE CONCEPT IS IN OUR SOCIETY WHAT WOULD THE ROAD LOOK LIKE IF WE ALL CHALLENGED THE AUTOMATIC ASSUMPTION THAT IF THERE IS A WINNER THERE IS A LOSER WHAT IF WINNING MEANT EVERYONE WON AT NO ONE ELSE'S EXPENSE YOU QUOTE GLENN HUTCHINS WHO SPECIALIZES IN LEVERAGED BUYOUTS TALKING ABOUT THE NEED FOR EFFICIENCY AND COSTCUTTING IN COMPANIES SO THAT THEY CAN COMPETE GLOBALLY THE PROCESS CREATES WINNERS AND LOSERS HE SAYS THE NEED FOR COSTCUTTING IN A LEVERAGED BUYOUT ARISES NOT FROM COMPETITIVE PRICING CONCERNS BUT RATHER FROM THE NEED TO PAY THE INTEREST ON THE DEBT CREATED BY THE BUYOUT THE WORKERS IN THE COMPANY THE LOSERS WORK SEVENDAY WEEKS ALEX HUTCHINS THE OTHER BROTHER STATES TO SUPPORT THE OBSCENE FINANCIAL ARRANGEMENTS OF THE NEW OWNERS PRESUMABLY THE WINNERS THIS IS FAR DIFFERENT FROM THE TRADITIONAL AMERICAN VIEW OF ENTREPRENEURIAL SUCCESS WHERE THE INVESTORS' OWN MONEY IS USED TO SUPPORT STARTUP IN THE HOPES OF ULTIMATE FINANCIAL GAIN FOR ALL A HIGHLY LEVERAGED COMPANY FOCUSES ON INTEREST AND DEBT REPAYMENT INSTEAD OF THE RESEARCH AND DEVELOPMENT INVESTMENT IT NEEDS FOR FUTURE SUCCESS FOR A WHILE THE FEW BIG WINNERS IN LEVERAGED BUYOUTS CAN RIDE ON THE BACKS OF MANY LOSERS ULTIMATELY WE WILL DESTROY AMERICA'S STRENGTH OUR UPWARDLY MOBILE MIDDLE CLASS AND CREATE A FORTRESS AMERICA WITH THE FEW RICH BEHIND WALLS GATES AND BODYGUARDS AND THE MANY POOR PEERING IN ENVIOUSLY 9309200068 930920 FRENCH GOVERNMENT ANNOUNCES SCHEDULE OF BNP PRIVATIZATION PARIS THE FRENCH GOVERNMENT PLANS TO SELL ABOUT 72 MILLION SHARES OR 40 OF STATEOWNED BANQUE NATIONALE DE PARIS ON THE MARKET BY DEC 20 MARKET CONDITIONS PERMITTING THE ECONOMICS MINISTRY SAID THE SALE WILL FOLLOW THE DIVISION OF THE GROUP'S NOMINAL SHARE PRICE BY TWO AS WELL AS A PLANNED CAPITAL BOOST THE CAPITAL WILL BE USED BY BNP TO PURCHASE THE STATE'S HALF OF HOLDING COMPANY FINANCIERE BNP WHICH OWNS 20 OF STATECONTROLLED INSURER UNION DES ASSURANCES DE PARIS SUBSEQUENTLY STEPS WILL BE TAKEN SO THAT BNP AND UAP EACH HOLDS A 15 EQUITY STAKE IN THE OTHER THE STATE ALSO PLANS TO SELL AN ADDITIONAL 15 OF BNP TO A GROUP OF CORE SHAREHOLDERS WHO ARE EXPECTED TO ENSURE A STABLE INVESTOR BASE AFTER PRIVATIZATION REGARDING THE PUBLIC OFFER THE ECONOMICS MINISTRY SAID 36 MILLION SHARES WILL BE PLACED IN FRANCE WHILE 125 MILLION WILL GO TO FRENCH INSTITUTIONAL INVESTORS AND 235 MILLION TO FOREIGN INVESTORS ANOTHER EIGHT MILLION SHARES ARE SET TO BE OFFERED TO BNP EMPLOYEES AT A PREFERENTIAL RATE PREMARKETING FOR THE OFFER IS SCHEDULED TO BEGIN TODAY WHEN MARKET INTERMEDIARIES BEGIN TAKING ORDERS FROM INDIVIDUALS FRENCH NATIONALS AND RESIDENTS AS WELL AS EUROPEAN COMMUNITY NATIONALS WILL HAVE PRIORITY SUBSCRIPTION RIGHTS UP TO 40 SHARES THOSE USING THE SOCALLED BALLADUR PRIVATIZATION BONDS AS PAYMENT WILL HAVE PRIORITY SUBSCRIPTION RIGHTS BEYOND THE 40SHARE LIMIT THE GOVERNMENT ALSO HAS DECIDED TO OFFER ONE FREE SHARE FOR EVERY 10 SHARES PURCHASED PROVIDED A BUYER HOLDS THE SHARES FOR AT LEAST 18 MONTHS THE LIMIT ON FREE SHARES IS FOR PURCHASES UP TO 30000 FRANCS 5362 THE PUBLIC OFFER IS SCHEDULED FOR A DURATION OF SIX TRADING DAYS THE ECONOMICS MINISTRY NOTED THAT AFTER THE CLOSING OF THE PUBLIC OFFER IT WILL EXCHANGE BNP NONVOTING CERTIFICATES CURRENTLY TRADED ON THE PARIS BOURSE FOR THE NEW SHARES THE MINISTRY SAID THE INITIAL OFFERING PRICE WILL BE ANNOUNCED DURING THE PREMARKETING PERIOD 9309200067 930920 CALIFORNIA OPENS 2 BILLION MARKET FOR TOLL CALLS AND ORDERS PRICE CUTS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA REGULATORS CLEARED THE WAY FOR LONGDISTANCE CARRIERS TO COMPETE WITH LOCAL PHONE COMPANIES IN THE STATE'S LUCRATIVE 2 BILLION MARKET FOR INTRASTATE TOLL CALLS THE RULING BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION MOST DIRECTLY AFFECTS PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT WHICH ACCOUNTS FOR THE BULK OF TOLL CALLS MADE IN CALIFORNIA AND GTE CORP'S GTE CALIFORNIA UNIT PACIFIC BELL FACES THE PROSPECT OF INCREASED COMPETITION FROM 93 COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO MCI COMMUNICATIONS CORP AND SPRINT CORP WHICH ASKED FOR AND GOT PERMISSION TO OFFER RIVAL SERVICES THE COMMISSION'S DECISION ALSO REQUIRES PACIFIC TELESIS GTE AND OTHER LOCAL PHONE CARRIERS TO MAKE HEFTY 40 TO 60 PRICE CUTS FOR TOLL CALLS LONGDISTANCE CALLS MADE OUTSIDE THE 12MILE LOCAL CALLING AREA BUT WITHIN THE STATE THE RULING IS EXPECTED TO SPUR COMPETITION REDUCE MONTHLY PHONE BILLS FOR MOST CALIFORNIA PHONE USERS AND PROVIDE A BOOST TO THE STATE'S TORPID ECONOMY ABOUT 40 STATES ALREADY ALLOW SIMILAR COMPETITION BUT CALIFORNIA'S SIZE REQUIRES ITS RESIDENTS TO MAKE MORE LONGDISTANCE CALLS WITHIN ITS BORDERS PACIFIC BELL'S TOLL REVENUE ALONE TOTALED 21 BILLION LAST YEAR WHILE PACIFIC BELL COULD LOSE SOME MARKET SHARE OVER TIME TO SMALLER COMPETITORS LONGDISTANCE CARRIERS MAY SHY AWAY FROM THE CALIFORNIA MARKET SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC SURE IT'S A LUCRATIVE MARKET BUT THE 40 TO 60 RATE CUTS REDUCE ITS ATTRACTIVENESS HE SAID PHONE CUSTOMERS MAY REJOICE HOWEVER BEGINNING JAN 1 THE STATE'S 18 MILLION PHONE USERS CAN PLACE A TOLL CALL WITH ANY COMPANY BY DIALING A SHORT CODE UNIQUE TO THAT CARRIER THE LOWER TOLL RATES WILL CUT PHONE BILLS FOR RESIDENTIAL AND BUSINESS CUSTOMERS WHO MAKE MANY TOLL CALLS BUT INCREASE MONTHLY CHARGES FOR THOSE WHO MAKE ONLY LOCAL CALLS THE RATE CHANGES WILL NOT DIRECTLY AFFECT THE OVERALL REVENUES FOR LOCAL PHONE COMPANIES INSTEAD THE NEW RULING WILL RESULT IN A REDISTRIBUTION OF MORE THAN 9 BILLION IN RATES PAID ANNUALLY TO LOCAL PHONE COMPANIES FOR VARIOUS SERVICES ACCORDING TO THE COMMISSION PACIFIC BELL SAID THE LOWER RATES WILL ALLOW IT TO REGAIN CUSTOMERS WHO HAVE BEEN WOOED AWAY BY OTHER CARRIERS IN THE PAST A LOT OF THESE COMPANIES WEREN'T SUPPOSED TO BE COMPETING IN THE TOLL CALL MARKET BUT THEY WERE SAID MIKE J MILLER VICE PRESIDENT FOR COMPETITIVE READINESS AT PACIFIC BELL THE ONES WE'VE BEEN LOSING ARE OUR MOST PROFITABLE CUSTOMERS GTE WHOSE CALIFORNIA OPERATIONS ARE ALSO AFFECTED BY THE RULING SAID IT DISAGREED WITH THE COMMISSION ABOUT PRICE ELASTICITY HOW CALLING VOLUME AND REVENUE CAN BE STIMULATED BY REDUCING RATES WE'RE NOT ASKING FOR ANY NEW REVENUE BUT WE'RE CONCERNED THAT SOME OF THE COMMISSION'S REPRICING PLANS COULD LEAVE US WITH A REVENUE SHORTFALL THE STAMFORD CONN REGIONAL CARRIER SAID GTE ADDED THAT IT WILL MOVE PRICES OF LOCAL SERVICES CLOSER TO COST WHILE REDUCING RATES OF SHORTHAUL TOLL CALLS BY AN AVERAGE OF ABOUT 40 THE CHANGES IN CALIFORNIA WON'T STOP WITH FRIDAY'S RULING THE CALIFORNIA COMMISSION WILL HOLD HEARINGS BEGINNING IN MIDJANUARY ON WHETHER PHONE CUSTOMERS SHOULD BE ALLOWED TO SIGN UP WITH A PARTICULAR LONGDISTANCE COMPANY TO CARRY THEIR TOLL CALLS ON FRIDAY PACTEL'S SHARES CLOSED AT 54625 UP 375 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9309200066 930920 THE FRUGALMINDED FIND WAYS TO TRIM COSTS OF TRAVEL ABROAD BY TIMOTHY D SCHELLHARDT AND SUSAN CAREY STAFF REPORTERS OF THE WALL STREET JOURNAL TO LAND BUSINESS ABROAD YOU HAVE TO GO THERE THAT'S AN EXPENSIVE PROPOSITION THESE DAYS FOREIGNTRAVEL COSTS ALREADY SKYHIGH CONTINUE TO CREEP UP AIR FARES ON OVERSEAS FLIGHTS ARE TWO TO THREE TIMES HIGHER THAN DOMESTIC FARES MEALS AND LODGING CAN EASILY COST 400 A DAY IN POPULAR BUSINESS DESTINATIONS LIKE LONDON PARIS TOKYO AND HONG KONG AND FORGET CHEAP RENTALCAR CHARGES ABROAD BUT SAVVY COMPANIES ARE TAKING ADVANTAGE OF A GROWING NUMBER OF OPPORTUNITIES OR ARE USING THEIR BARGAINING SKILLS TO SAVE COSTS WHILE STILL MAKING GLOBETROTTING EMPLOYEES FEEL THEY ARE BEING TREATED ROYALLY WANT FREE LIMOUSINE SERVICE TO THE AIRPORT HOW ABOUT A FREE NIGHT'S LODGING THEY ARE AVAILABLE MEANWHILE SOME EXECUTIVES ARE PERFECTING THEIR OWN PARSIMONIOUS TRAVEL STRATEGIES CHICAGO MANAGEMENT CONSULTANT JAMES KUHN FOR ONE HAS BEGUN FLYING TO EUROPE AND BACK IN ONE DAY IT TAKES SOME PLANNING BUT YOU AVOID AN EXPENSIVE HOTEL ROOM AND GREAT BIG MEALS SAYS THE AT KEARNEY VICE PRESIDENT AND YOU TOTALLY AVOID JET LAG FOR MANY COMPANIES TO BE SURE THERE IS A LIMIT TO THE PENNYPINCHING WHEN SEEKING BUSINESS OVERSEAS OUR PRIMARY ROLE IN LIFE IS TO GET OUR TRAVELERS FROM POINT A TO POINT B TO CARRY OUT THE BUSINESS MISSION SAYS FRED SWAFFER TRAVEL MANAGER AT HEWLETTPACKARD CO WHICH SPENDS ABOUT 80 MILLION ANNUALLY ON FOREIGN TRAVEL AND ENTERTAINMENT WE CAN'T INTERFERE WITH THAT MISSION JUST TO TRY AND SAVE 100 ON A HOTEL BILL BUT YOU CAN SAVE A BUNDLE WITHOUT JEOPARDIZING THE MISSION CONSIDER AIR FARES MANY COMPANIES TAKING ADVANTANGE OF THE FIERCE AIRLINE COMPETITION IN MANY FOREIGN MARKETS ARE INKING DEALS WITH AN INDIVIDUAL CARRIER FOR A 10 CREDIT ON BUSINESSCLASS FARES TO SAY SOUTH AMERICA WHICH CAN THEN BE APPLIED TO FUTURE TRIPS TO ANOTHER DESTINATION ELSEWHERE LIKE TO LONDON OR TOKYO EVEN SMALL BUSINESSES CAN SEEK SUCH CREDITS BUT THERE IS A BIT OF GOODFAITH NEGOTIATIONS INVOLVED NOTES ROLFE SHELLENBERGER A SENIOR CONSULTANT AT RUNZHEIMER INTERNATIONAL THE TRAVELCOST CONSULTING FIRM YOU DON'T CUT A DEAL WITH UNITED AIRLINES AND PROMISE IT ALL YOUR BUSINESS TO PARIS AND THEN CUT A SIMILAR DEAL WITH AMERICAN HE SAYS A GROWING NUMBER OF COMPANIES ARE CUTTING THEIR AIRFARE BILL BY DEMANDING THAT THEIR TRAVEL AGENCIES FORK OVER A HUNK OF TICKET COMMISSIONS OR UPFRONT BONUSES EARNED ON SOME FLIGHTS IN HOT COMPETITIVE MARKETS LIKE CERTAIN SOUTH AMERICAN CITIES AIRLINES ARE GIVING TRAVEL AGENTS HEFTY COMMISSIONS OF AS MUCH AS 35 COMPARED WITH A TRADITIONAL 85 COMMISSION TO GET BUSINESS AND COMPANIES ARE ASKING FOR A SHARE OF THAT COMMISSION HEWLETTPACKARD AND OTHER COMPANIES ARE BEGINNING TO BUY SOME TICKETS FROM SOCALLED CONSOLIDATORS WHICH OFFER BARGAINBASEMENT FARES BUT WITH LITTLE FLEXIBILITY FOR MAKING FLIGHT CHANGES MR SWAFFER SAYS HE HAS BOUGHT SUCH TICKETS TO THE FAR EAST AT FARES 30 LOWER THAN IF PURCHASED AT AN AIRLINE TICKET OFFICE MANY EMPLOYERS WITH SOME NEGOTIATING STRENGTH ARE ALSO GETTING FREE UPGRADES TO FIRST CLASS FROM BUSINESS CLASS OR TO BUSINESS CLASS FROM COACH CLASS FOR THEIR VIPS YOU SIT DOWN WITH THE AIRLINE FOR INSTANCE AND YOU SAY WE HAVE THESE 15 EXECUTIVES WITH THESE TITLES AND THEY'LL BE TRAVELING TO BRUSSELS ON A REGULAR BASIS AND WE'D LIKE THEM TO BE UPGRADED EVERY TIME WE BOOK A SEAT FOR THEM IN BUSINESS CLASS' EXPLAINS MR SHELLENBERGER THIS PRACTICE HAS GROWN AS THE FARE DIFFERENCE BETWEEN BUSINESSCLASS AND COACH ONCE JUST 15 OR 20 HAS GROWN TO 100 MR SWAFFER SAYS THAT AS THAT FARE GAP WIDENED THE PAST TWO YEARS THE PERCENTAGE OF HEWLETTPACKARD EMPLOYEES TRAVELING TO EUROPE IN BUSINESS CLASS HAS DROPPED TO 36 FROM 80 EMPLOYEES NEED TWO LEVELS OF APPROVAL TO FLY AT A LEVEL HIGHER THAN COACH COMPANIES ARE USING OTHER WAYS TO REDUCE FOREIGNAIRFARE COSTS MOLEX INC A MAKER OF ELECTRICAL TERMINALS AND CONNECTORS IN LISLE ILL IS GETTING 40000 A QUARTER IN FREE TICKETS FROM MEMBERS OF ITS EXECUTIVE COMMITTEE WHO TURN IN THEIR FREQUENTFLIER MILES TO THE COMPANY RATHER THAN USE THOSE MILES FOR PERSONAL USE ONE COST SAVER NOW WIDELY AVAILABLE FOR TRAVEL WITHIN EUROPE IS THE AIR PASS SOLD IN THE US BY A HOST OF EUROPEAN CARRIERS THE PASSES ALLOW TRAVELERS TO JET ABOUT IN EUROPE FOR ONLY 110 TO 120 A FLIGHT A SIGNIFICANT SAVINGS OVER PUBLISHED TARIFFS THIS IS AN EXCELLENT DEAL FOR THE BUSINESS TRAVELER SAYS TOM PARSONS PUBLISHER OF BEST FARES A TRAVEL MONTHLY TO GET TO THE AIRPORT EXECUTIVES FLYING BUSINESS OR FIRST CLASS FROM CERTAIN CITIES OFTEN CAN GET FREE LIMOUSINE SERVICE VIRGIN GROUP LTD'S VIRGIN ATLANTIC AIRWAYS FOR EXAMPLE OFFERS SUCH A SERVICE SAVINGS ARE USUALLY POSSIBLE ON FOREIGN HOTEL ROOMS ALTHOUGH DISCOUNTS AREN'T AS ATTRACTIVE AS THOSE OFFERED IN THE HOTLY COMPETITIVE US MARKET AND UNLIKE THE US THERE ARE FEW HOTELAIRLINE TIEINS ABROAD THAT ALLOW A CARRIER TO OFFER HOTEL SERVICES AT A SPECIAL RATE STILL REGULAR CUSTOMERS OF A FOREIGN HOTEL OFTEN CAN NEGOTIATE A ROOM RATE 10 TO 15 BELOW THE HOTEL'S CORPORATE RATE MAJOR CORPORATE CUSTOMERS ALSO NEGOTIATE DISCOUNTED ROOM RATES WITH FOREIGN HOTELS MANVILLE CORP FOR INSTANCE HAS WORKED OUT SPECIAL RATES WITH MAJOR HOTELS IN FRANKFURT THERE IS ONE OTHER LESSPUBLICIZED WAY TO LAND A REAL HOTEL BARGAIN SOME AIRLINES SERVING EUROPE OFFER STAY ON THE WAY SERVICE A VOUCHER FOR A FREE HOTEL ROOMIF A PASSENGER MUST LAY OVER IN A CITY WHILE RENTALCAR RATES ABROAD ARE EXTREMELY HIGH COMPANIES CAN NEGOTIATE DISCOUNTS BY DESIGNATING A RENTALCAR COMPANY AS THEIR PREFERRED SUPPLIER BUT THERE IS ONE EXPENSE ABROAD THAT IS OFTEN DIFFICULT TO PARE DINING OUT WITH A CUSTOMER OR POTENTIAL CLIENT EARLIER THIS SUMMER GENE DENEZZA OF RESTON VA VICE PRESIDENT OF AN INFORMATIONTECHNOLOGY FIRM SAYS HE PAID THE EQUIVALENT OF 300 FOR A LUNCH FOR THREE AT A RESTAURANT IN ANTWERP TABS LIKE THAT MAKE THE PRICE OF DOING BUSINESS HARD TO HANDLE HE SAYS THAT'S WHERE THE SOLUTION OF MR KUHN THE CHICAGO MANAGEMENT CONSULTANT WHO COMPLETES HIS FOREIGN TRAVEL IN ONE DAY COMES IN HANDY THE KEY TO PULLING IT OFF YOU MUST SLEEP ON THE AIRPLANE GOING OVER AND DRINK COFFEE LOTS OF IT JUST BEFORE YOU LAND SO YOU'RE WIRED FOR YOUR BUSINESS MEETINGS SAYS MR KUHN WHO TRAVELS 250000 MILES A YEAR HE ADDS THAT HE SOMETIMES CHANGES CLOTHES IN THE PLANE'S BATHROOM AND AVOIDS THE FIRSTCLASS SECTION BECAUSE EVEN IF IT ISN'T FULL HE CAN'T STRETCH OUT ACROSS THE SEATS TO SLEEP AND WHAT DO COLLEAGUES THINK OF THIS METHOD THEY THINK I'M CRAZY HE SAYS 9309200065 930920 BIOJECT TO OFFER SHARES PORTLAND ORE BIOJECT MEDICAL TECHNOLOGIES INC SAID IT REGISTERED A PUBLIC OFFERING OF 2610000 COMMON SHARES AFTER THE OFFERING UNDERWRITTEN BY PACIFIC GROWTH EQUITIES THE MAKER OF DRUGDELIVERY SYSTEMS WILL HAVE 12656854 SHARES OUTSTANDING BIOJECT WILL USE THE PROCEEDS TO EXPAND MANUFACTURING AND MARKETING AND FOR GENERAL CORPORATE PURPOSES 9309200064 930920 KUOK'S STAKE IN HONG KONG NEWSPAPER IS SEEN AS BLESSING FOR BEIJING LEADERS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG NOW THAT ROBERT KUOK HAS AGREED TO BUY A BIG STAKE IN HONG KONG'S MAIN ENGLISHLANGUAGE NEWSPAPER BEIJING CAN REST ASSURED THAT AT LEAST ONE LOOSE CANNON AMONG THE COLONY'S MEDIA HAS FALLEN INTO FRIENDLY HANDS THE 69YEAROLD TYCOON WHO IS CLOSE TO SEVERAL OF THE MAINLAND'S LEADERS INCLUDING PREMIER LI PENG MAY WELL HAVE A TEMPERING EFFECT ON THE OFTEN CRITICAL COVERAGE OF CHINA BY THE SOUTH CHINA MORNING POST A MORE SUPPORTIVE PRESS WOULD SUIT CHINESE LEADERS AS THEY PREPARE TO REGAIN SOVEREIGNTY OVER THE BRITISH COLONY IN MID1997 HE PLAYS THE POLITICAL GAME QUITE WELL AND THE MEDIA AND POLITICS ARE CLOSELY TIED SAYS ONE OF MR KUOK'S FRIENDS IN HONG KONG MR KUOK WHO DECLINED TO BE INTERVIEWED ISN'T ABOVE USING HIS INFLUENCE TO MAKE THINGS HAPPEN A FEW YEARS AGO HE BROKERED AN INTERVIEW WITH PREMIER LI FOR HONG KONG'S TELEVISION BROADCASTS LTD THE LOCAL BROADCASTER IN WHICH HE OWNS A 33 STAKE THE INTERVIEW ON THE HEELS OF THE 1989 TIANANMEN SQUARE MASSACRE WAS LADEN WITH CONDITIONS SET BY CHINA THAT SEEMED DESIGNED TO MAKE MR LI LOOK GOOD PEOPLE AT TVB SAY MR KUOK HAS MADE A CAREER OF CULTIVATING THE REGION'S POLITICAL ELITE INCLUDING MALAYSIAN PRIME MINISTER MAHATHIR MOHAMAD SINGAPOREAN SENIOR MINISTER LEE KUAN YEW AND INDONESIAN PRESIDENT SUHARTO INDEED SOME COLLEAGUES HAVE DUBBED MR KUOK THE ARMAND HAMMER OF THE EAST AFTER THE LATE US BUSINESSMAN WHO COZIED UP TO LEADERS AROUND THE WORLD MR KUOK ALREADY HAS EXTENSIVE BUSINESS TIES WITH CHINA IN 1984 HE AGREED TO BUILD THE CHINA WORLD TRADE CENTRE COMPLEX IN THE CAPITAL ONE OF THE BIGGEST SINGLE COMMERCIAL DEVELOPMENTS IN CHINA TO DATE AND HE HAS SINCE ENTERED A STRING OF VENTURES WITH VARIOUS ARMS OF THE CHINESE GOVERNMENT HIS HOLDINGS INCLUDE 13 OF HONG KONGLISTED CITIC PACIFIC A BEIJINGCONTROLLED INVESTMENT COMPANY MR KUOK'S PLANNED INVESTMENT IN A NEWSPAPER VITAL TO COMMUNIST PARTY INTERESTS HAS AN INTRIGUING PARALLEL IN THE PAST IN THE 1950S HIS BROTHER WILLIE KUOK BROKE WITH THE FAMILY TO HEAD THE COMMUNIST PARTY OF MALAYA'S ENGLISHLANGUAGE PRESS AND WAS LATER KILLED BY BRITISH TROOPS THE INFLUENCE THAT ROBERT KUOK WIELDS REACHES FAR BEYOND BEIJING HOWEVER HE CONTROLS MUCH OF THE WORLD'S FREELY TRADED SUGAR AND HAS INTERESTS IN OTHER COMMODITIES SHIPPING LINES PROPERTY DEVELOPMENT AND HOTELS HIS BUSINESSES SPAN MORE THAN A DOZEN COUNTRIES FEW OF HIS ACTIVITIES ARE EXPOSED TO THE PUBLIC VIEW HE HOLDS FEW EXECUTIVE POSTS AT COMPANIES HE CONTROLS THE KUOK FAMILY HAS ROOTS IN CHINA'S FUJIAN PROVINCE BUT MOVED TO MALAYSIA'S JOHOR STATE SHORTLY BEFORE MR KUOK WAS BORN HIS FATHER GOT HIS START SUPPLYING RICE AND SUGAR TO THE LOCAL SULTAN A BUSINESS THAT YOUNG MR KUOK LATER PURSUED AS A RICE TRADER FOR JAPAN'S MITSUBISHI CORP IN SINGAPORE DURING WORLD WAR II MR KUOK AND HIS BROTHER PHILIP LATER TOOK OVER THEIR FATHER'S COMPANY RENAMING IT KUOK BROTHERS SDN BHD WHICH REMAINS THE FAMILY'S PRIMARY HOLDING COMPANY IN MALAYSIA THE EMPIRE HAS SINCE SPREAD TO NINE LISTED COMPANIES AND DOZENS OF PRIVATE CONCERNS MUCH OF MR KUOK'S FORTUNE WAS MADE WITH SUGAR THE BROTHERS BUILT MALAYSIA'S FIRST SUGAR REFINERY NEAR PENANG AFTER THE WAR THEN ACQUISITIONS AND SAVVY TRADING ON THE WORLD'S SUGAR MARKETS DURING THE 1970S MADE MR KUOK THE WORLD'S SUGAR KING HIS 30OWNED JOINT VENTURE WITH FRANCE'S SUCRES & DENREES IS THE WORLD'S LARGEST SUGAR TRADER WHILE SINGAPORELISTED PERLIS PLANTATIONS IS MALAYSIA'S LARGEST SUGAR REFINER SINGAPORELISTED PACIFIC CARRIERS CONTROLLED BY MR KUOK IS A MAJOR DRYBULK SHIPPING LINE THE SHANGRILA HOTEL CHAIN CONTROLLED THROUGH LISTED KUOK VEHICLES IN SINGAPORE THAILAND THE PHILIPPINES AND HONG KONG INCLUDES SOME OF THE REGION'S MOST EXCLUSIVE LODGINGS MUCH OF THE EMPIRE IS HELD PRIVATELY MAKING MR KUOK'S WEALTH DIFFICULT TO MEASURE FORBES MAGAZINE RANKS HIM AMONG THE WORLD'S 200 RICHEST PEOPLE WITH ASSETS ESTIMATED AT ABOUT 18 BILLION WHILE MR KUOK RETAINS CLOSE TIES TO MALAYSIA AND CARRIES A MALAYSIAN PASSPORT HE HAS MADE HIS HOME SINCE THE LATE 1970S ALONGSIDE FELLOW TYCOONS OVERLOOKING HONG KONG'S DEEP WATER BAY EXECUTIVES IN MALAYSIA AND SINGAPORE SAY HE HAS INCREASINGLY DISTANCED HIMSELF FROM HIS COMPANIES THERE LEAVING DAYTODAY OPERATIONS TO OLD AND TRUSTED HANDS AND TO YOUNGER FAMILY MEMBERS INCLUDING HIS YOUNGEST SON KUOK KHOON EAN THE SENIOR MR KUOK MEANWHILE SPENDS MORE OF HIS TIME ON EXPANDING HIS INVESTMENTS IN CHINA THROUGH KERRY GROUP HIS HONG KONGBASED FLAGSHIP COMPANY THE SOUTH CHINA MORNING POST STAKE WOULDN'T BE MR KUOK'S FIRST INVESTMENT IN A NEWSPAPER IN 1975 KUOK BROTHERS BOUGHT A SUBSTANTIAL STAKE IN NANYANG PRESS MALAYA BHD PUBLISHER OF ONE OF MALAYSIA'S LEADING CHINESE DAILIES NANYANG SIANG PAU THE COMPANY SOLD THE STAKE IN FEBRUARY 1990 HIS ONLY OTHER MEDIA HOLDING IS THE STAKE IN HONG KONG'S TVB WHICH HE BOUGHT IN 1988 FROM AUSTRALIAN BUSINESSMAN ALAN BOND I'VE ALWAYS HAD THE IMPRESSION HE WAS NOT MUCH INTERESTED IN THE NEWSPAPER BUSINESS SAYS A MALAYSIAN ASSOCIATE HE ADDS THAT MR KUOK'S PURCHASE OF THE TVB STAKE WAS THE RESULT OF HIS FRIENDSHIP WITH SIR RUN RUN SHAW WHO OWNS ABOUT 34 OF THE BROADCAST COMPANY THE ASSOCIATE FIGURES THAT MR KUOK'S PURCHASE OF THE SOUTH CHINA MORNING POST STAKE IS A FAVOR TO HIS CHINESE FRIENDS IN BEIJING THE ASSOCIATE ADDS I WOULDN'T BE SURPRISED IF HE LATER SELLS IT OFF TO INTERESTS CLOSER TO BEIJING 9309200063 930920 HONDA TO HALT CIVIC ACCORD EXPORTS TO US YEN'S STRENGTH ALSO SPURS NISSAN AND MITSUBISHI TO RAISE THEIR PRICES BY JACOB M SCHLESINGER AND KRYSTAL MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL HONDA MOTOR CO PROMPTED BY THE RECENT STRENGTH OF THE YEN SAID IT WILL PHASE OUT EXPORTS OF ITS BESTSELLING MODELS TO THE US THE AUTO MAKER INSTEAD WILL SELL IN THE US ONLY CIVICS AND ACCORDS MADE IN ITS NORTH AMERICAN FACTORIES A MOVE THAT WILL EVENTUALLY COST AS MANY AS 3000 JOBS IN JAPAN SEPARATELY THE US ARMS OF NISSAN MOTOR CORP AND MITSUBISHI MOTORS CORP ANNOUNCED HEFTY PRICE INCREASES WHILE THE COMPANIES MAINLY BLAMED THE STRONG YEN THEY ALSO SAID THE HIGHER PRICES REFLECTED THE ADDITION OF STANDARD EQUIPMENT SUCH AS AIR BAGS JAPANESE AUTO COMPANIES ALSO ARE UNDER PRESSURE TO RAISE PRICES ENOUGH TO AVERT DUMPING CHARGES BY DETROIT'S BIG THREE AUTO MAKERS A HONDA SPOKESMAN IN TOKYO SAID OVER THE WEEKEND THAT THE AUTO MAKER PLANS TO EVENTUALLY STOP EXPORTS TO THE US OF ITS ACCORDS AND CIVICS CIVICS WILL BE MADE COMPLETELY IN THE US BY NEXT SPRING AND THE CHANGEOVER IN ACCORD PRODUCTION WILL BE FINISHED BY MARCH 1996 HONDA CURRENTLY MAKES ABOUT 340000 COMPACT ACCORDS A YEAR IN OHIO AND LAST YEAR EXPORTED ABOUT 60000 TO THE US THE COMPANY MAKES ABOUT 230000 SUBCOMPACT CIVICS IN OHIO AND CANADA AND LAST YEAR EXPORTED ABOUT 20000 UNITS AS PART OF THE MOVE HONDA WILL ALSO TRANSFER SOME ENGINE PRODUCTION FROM JAPAN TO OHIO THE SPOKESMAN SAID THE CHANGES ARE PART OF A LONGPLANNED CORPORATE RESTRUCTURING BUT THAT THEY WERE ACCELERATED BECAUSE OF THE YEN HONDA WHICH WILL STILL MAKE THE CARS IN JAPAN FOR THE JAPANESE MARKET EXPECTS THE YEN TO STAY AT ITS CURRENT LEVEL FOR THE FORESEEABLE FUTURE HONDA WILL CONTINUE TO EXPORT ITS SPORTY CRX CARS TO THE US FROM JAPAN AS WELL AS ITS UPSCALE MODELS THE AUTO MAKER LAST YEAR EXPORTED A TOTAL OF ABOUT 300000 CARS TO THE US INCLUDING THE 80000 ACCORDS AND CIVICS AS A RESULT OF THE CIVICACCORD CHANGE THE SPOKESMAN SAID HONDA WILL CUT ITS WORK FORCE IN JAPAN BY 7 TO 40000 OVER THE NEXT THREE YEARS HE SAID THE COMPANY WON'T LAY OFF ANY WORKERS BUT WILL REPLACE ONLY ABOUT ONEFOURTH OF THE 1200 WORKERS EXPECTED TO QUIT OR RETIRE EACH YEAR IT ISN'T CLEAR YET WHETHER THE TRANSFER WILL BOOST EMPLOYMENT AT NORTH AMERICAN FACTORIES THE SPOKESMAN ADDED THAT HONDA MAY TRY TO INCREASE EXPORTS OF OTHER MODELS TO THE US SO IT'S NOT CLEAR HOW MUCH ITS EXPORTS WILL FALL AUTO MAKERS AREN'T THE ONLY JAPANESE EXPORTERS HURTING BECAUSE OF THE STRONGER YEN WHICH MAKES THEIR GOODS MORE EXPENSIVE ABROAD AND SHRINKS THEIR OVERSEAS EARNINGS WHEN THEY ARE CONVERTED INTO YEN ELECTRONICS COMPANIES TOO HAVE HAD TO REWRITE BUSINESS PLANS NEC CORP SAID LAST WEEK IT WILL TRY TO MAKE LOCALLY 70 OF THE GOODS IT SELLS IN THE US AND EUROPE EXPORTING ONLY 30 COMPARED WITH ABOUT HALF AND HALF CURRENTLY OTHER JAPANESE AUTO MAKERS ARE LIKELY TO SOON TAKE SIMILAR ACTION SAID JONATHAN DOBSON AN AUTO ANALYST FOR JARDINE FLEMING SECURITIES IN TOKYO EXPECT TOYOTA AND NISSAN TO INCREASE PRODUCTION IN THE STATES HE SAID VEHICLES BUILT AT NISSAN'S ASSEMBLY PLANT IN SMYRNA TENN ALREADY ACCOUNT FOR 62 OF THE AUTO MAKER'S TOTAL US SALES NISSAN SAID IN 1991 45 OF THE CARS AND TRUCKS NISSAN SOLD IN THE US WERE BUILT IN SMYRNA THE COMPANY SAID NISSAN'S PRICE INCREASES WERE SIMILAR TO THOSE ANNOUNCED RECENTLY BY JAPANESE RIVALS MAZDA MOTOR CORP AND TOYOTA MOTOR CORP NISSAN SAID ITS AVERAGE 1994 PRICE INCREASE WOULD BE 52 ON A COMPARABLY EQUIPPED BASIS WHICH ADDS TO THE 1993 PRICES THE COST OF EQUIPMENT THAT HAS BEEN MADE STANDARD ON 1994 MODELS THE BASE PRICE OF THE 1994 ALTIMA MIDSIZED SEDAN IS NOW 13739 UP 57 OR 740 FROM THE PREVIOUS PRICE THE TOPOFTHELINE ALTIMA NOW STARTS AT 19179 UP 34 OR 630 FROM THE 1993 MODEL NISSAN'S 1994 MAXIMA MEANWHILE STARTS AT 22199 AN INCREASE OF 41 OR 874 FROM THE PREVIOUS MODEL NISSAN'S BIGGEST INCREASE CAME ON THE SENTRA SE WHICH NOW STARTS AT 12599 UP 1389 THE SMALLEST INCREASE CAME ON THE TOPOFTHELINE SENTRA FOURDOOR SEDAN WHICH NOW HAS A STARTING PRICE OF 14669 UP 229 ANALYSTS SAY NISSAN HAS SOME LATITUDE ON PRICES BECAUSE OF STRONG DEMAND FOR ITS PRODUCTS SO FAR THIS YEAR NISSAN'S US SALES HAVE JUMPED 21 TO 457264 VEHICLES ITS SHARE OF THE US MARKET HAS INCREASED TO 49 THIS YEAR THROUGH AUG 31 FROM 44 DURING THE SAME PERIOD A YEAR AGO MITSUBISHI IS LESS FORTUNATE THROUGH AUG 31 THE AUTO MAKER'S US SALES HAVE INCHED UP 31 TO 122722 VEHICLES YET IT WAS FORCED INTO LARGE PRICE INCREASES THE MONTERO SPORT UTILITY VEHICLE NOW STARTS AT 23950 UP 235 FROM 19389 THE MIRAGE SEDAN NOW HAS A STARTING PRICE OF 11369 UP 152 FROM 9869 THE BASE PRICE OF MITSUBISHI'S LEAST EXPENSIVE CAR THE MIRAGE COUPE IS NOW 8989 AN 113 INCREASE FROM 8079 THE AUTO MAKER'S SMALLEST INCREASE CAME ON THE ECLIPSE WHICH NOW STARTS AT 11979 UP 1 FROM 11859 9309200062 930920 HEARD ON THE STREET IGT STOCK IS RIDING HIGH ON GAMBLING BOOM AND THE BELLS COULD KEEP RINGING FOR A WHILE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SLOTMACHINE MANUFACTURER INTERNATIONAL GAME TECHNOLOGY MAKES ITS MONEY OFF FOLKS WHO BET A QUARTER OR A DOLLAR AT A TIME BUT WITH THE COMPANY'S STOCK THE STAKES ARE ANYTHING BUT MODEST INTERNATIONAL GAME TECHNOLOGY CLOSED FRIDAY AT 38 3/4 WHICH MEANS INVESTORS ARE WAGERING 48 BILLION THAT THE GOOD TIMES WILL KEEP ON ROLLING AT THE RENO NEV COMPANY THAT'S A HUGE GAMBLE ON A COMPANY THAT GENERATED JUST 471 MILLION IN SALES AND 108 MILLION IN EARNINGS OVER THE LATEST FOUR QUARTERS BUT THE BET MAY WELL PAY OFF IGT ISN'T FOR THE FAINT OF HEART FOR STARTERS IT'S TRADING AT 45 TIMES TRAILING 12MONTH EARNINGS ANALYSTS ARE LOOKING FOR THE COMPANY TO EARN 112 A SHARE IN THE YEAR ENDING NEXT SEPTEMBER EVEN BASED ON THAT ESTIMATE IGT IS TRADING AT A LOFTY 35 TIMES EXPECTED EARNINGS NOT ONLY IS THE STOCK RICHLY VALUED IT HAS ALSO HAD A PHENOMENAL RUN IGT'S SHARES HAVE SOARED MORE THAN 18FOLD SINCE YEAREND 1990 WHEN THE STOCK CLOSED AT A SPLITADJUSTED 209 LAST WEEK ALONE THE STOCK TACKED ON 1 5/8 AS CASINO STOCKS BOUNCED BACK FROM THEIR RECENT DRUBBING BUT IGT'S BOOSTERS AREN'T DETERRED PEOPLE GET SCARED OFF BY THE PRICEEARNINGS RATIO SAYS GLORIA SANTELLA MANAGER OF STEINROE CAPITAL OPPORTUNITIES FUND BUT IT'S RARE WHEN YOU SEE A GROWTH PATTERN SO CLEARLY LAID OUT IN FRONT OF YOU IT'S THE PUREST PLAY ON THE EXPANSION OF GAMING THROUGHOUT THE COUNTRY AMONG THE STOCK'S BIGGEST FANS HAS BEEN RALPH WANGER THE HIGHLY REGARDED MANAGER OF THE 19 BILLION ACORN FUND WHICH HAS 86 OF ITS ASSETS INVESTED IN IGT WE BOUGHT IT FIVE YEARS AGO AT LESS THAN 1 A SHARE SAYS MR WANGER WE MADE 200 MILLION ON THE STOCK WHAT'S NOT TO LOVE YOU ALWAYS HAVE A WARM FEELING FOR YOUR FIRST 200 MILLION WINNER DESPITE THE STOCK'S SPECTACULAR RISE MR WANGER REMAINS BULLISH ON IGT IT'S HARD TO FIND COMPANIES IN THIS COUNTRY THAT ARE GROWING FASTER THAN THEY ARE IT'S NOW A RECOGNIZED GROWTH STOCK AND TRADES APPROPRIATELY THAT OBVIOUSLY INTRODUCES SOME RISK BUT AS LONG AS THE COMPANY CONTINUES TO DO REASONABLY WELL I'LL CONTINUE TO HOLD THE POSITION ANALYSTS ARGUE THAT IGT IS UNIQUELY POSITIONED TO BENEFIT FROM THE BOOM IN GAMBLING A GROWING NUMBER OF STATES HAVE GAMBLING WHETHER ON INDIAN RESERVATIONS OR AT NONINDIAN CASINOS OR ON RIVERBOATS GAMBLING IS ALSO EXPANDING AT A BRISK PACE IN AUSTRALIA CANADA AND EUROPE BUT WHILE GAMBLING IS CLEARLY A GROWTH BUSINESS MOST GAMBLING COMPANIES ARE STILL DOGGED BY WORRIES THAT ONE OF THEIR RIVERBOATS MIGHT PROVE UNPOPULAR OR THAT THEY WILL BUILD A CASINO IN A MARKET THAT BECOMES SATURATED THAT ISN' A PROBLEM FOR IGT WHOSE FORTUNES AREN'T TIED TO THE SUCCESS OF ANY ONE GAMBLING ESTABLISHMENT OR ANY ONE CITY GAMING IS EXPLODING AND THEY'VE ALL GOT TO BUY EQUIPMENT WHETHER THEY'RE CASINOS OR RIVERBOASTS OR INDIAN RESERVATIONS SAYS STEPHEN POLING CHIEF INVESTMENT OFFICER OF FORTIS ADVISERS WHICH MANAGES 32 BILLION IGT WINS REGARDLESS OF WHO RUNS THE FACILITIES IGT CURRENTLY ACCOUNTS FOR ROUGHLY THREEQUARTERS OF NEW SLOTMACHINE SALES IN THE US BOTH THE COMPANY AND ANALYSTS SAY CASINOS FAVOR IGT'S MACHINES BECAUSE THEY TEND TO GET PLAYED MUCH MORE HEAVILY THAN MACHINES SOLD BY COMPETITORS PEOPLE DON'T THINK ABOUT RESEARCH AND DEVELOPMENT IN SLOT MACHINES SAYS ROLAND GILLIS MANAGER OF KEYSTONE S4 A 1 BILLION SMALLSTOCK MUTUAL FUND BUT IGT PUTS A LOT OF EFFORT INTO COMING UP WITH INNOVATIVE SLOT MACHINES HE SAYS AMONG IGT'S INNOVATIONS HAS BEEN SOCALLED PROGRESSIVE SLOT MACHINES WHERE A STRING OF MACHINES AT DIFFERENT CASINOS ARE LINKED TOGETHER PROGRESSIVE GAMES SUCH AS MEGABUCKS AND QUARTERMANIA OFFER HUGE JACKPOTS WHICH HELPS THEM TO LURE MORE PLAYERS THAN REGULAR SLOT MACHINES EVEN ANALYSTS WHO AREN'T CURRENTLY RECOMMENDING THE STOCK SEE NO PROBLEM WITH IGT'S BUSINESS PROSPECTS THEIR CONCERN IS STRICTLY BASED ON THE COMPANY'S LOFTY STOCK PRICE IGT IS SELLING AT A VERY HEALTHY MULTIPLE OF CURRENT AND EXPECTED EARNINGS SAYS DENNIS FORST OF HANCOCK INSTITUTIONAL EQUITY SERVICES IF THE MARKET TOOK A WHACK OUT OF THE GROUP I'D RECOMMEND IT IN A SECOND INDEED PROBABLY THE BIGGEST RISK FOR IGT'S SHAREHOLDERS ISN'T A MISSTEP BY THE COMPANY BUT A CONTRACTION IN EARNINGS MULTIPLES ACROSS THE MARKET IN A BROAD SELLOFF IGT'S STOCK WOULD PROBABLY GET HIT HARDER THAN THE REST OF THE MARKET BUT ACORN'S MR WANGER FOR ONE REMAINS WEDDED TO THE STOCK WHEN YOU'VE DONE SO WELL ON A STOCK THAT PEOPLE FROM THE WALL STREET JOURNAL CALL UP AND ASK YOU ABOUT IT IT'S HARD TO CHANGE YOUR MIND HE CONFIDES WHEN IT COMES TIME TO SELL IT YOU'LL FIND I DIDN'T NOTE PERSHARE FIGURES ARE FULLY DILUTED 9309200061 930920 ARTRA GROUP TO HOLD ONTO UNIT NORTHFIELD ILL ARTRA GROUP INC SAID IT DISCONTINUED TALKS TO SELL ITS BAGCRAFT CORP OF AMERICA UNIT TO RICHLAND GORDON & CO OF CHICAGO AS REPORTED ARTRA A COSTUME JEWELRY MAKER IN APRIL SIGNED A LETTER OF INTENT TO SELL BAGCRAFT FOR 55 MILLION CASH AND A 1 MILLION NOTE 9309200060 930920 REVIEW & OUTLOOK EDITORIAL ASIDES PAPAL ECO CRIMES WE CAN NOW ADD THE POPE TO THE LIST OF ENVIRONMENTAL ABUSERS THE SIERRA CLUB IS AGHAST AT THE DAMAGE DONE TO THE DENVER HILL ON WHICH JOHN PAUL II CELEBRATED HIS PAPAL MASS THE AREA IS PRETTY MUCH DEVASTATED THE VEGETATION IS PRETTY WELL TORN UP AND WHAT WE'RE LEFT WITH ESSENTIALLY IS A BUNCH OF DIRT SAID THE HEAD OF THE CLUB'S HIGH PLAINS DIVISION THANK HEAVENS THE ORIGINATOR OF THE SERMON ON THE MOUNT DIDN'T HAVE TO CLEAR THAT GATHERING WITH THE SIERRA CLUB 9309200059 930920 WHAT'S NEWS WORLDWIDE CLINTON PLANS TO LOOSEN EXPORT CURBS INVOLVING 20 BILLION OF COMPUTER SALES THE PRESIDENT'S ACTION PART OF A REASSESSMENT OF COLD WARERA EXPORT CONTROLS WILL AFFECT THE NEWEST GENERATION OF DESKTOP MODELS AND MAINFRAME COMPUTERS NOW CLASSIFIED AS SUPERCOMPUTERS OFFICIALS SAID THE MOVE IS PART OF A US POLICY STILL TAKING SHAPE UNDER WHICH THE ADMINISTRATION HOPES TO HELP AMERICAN FIRMS SELL HIGHTECHNOLOGY ITEMS ABROAD WHILE OFFERING OTHER COUNTRIES INCENTIVES TO HALT THE SPREAD OF NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS THE DECISION ON COMPUTERS LIKELY TO BE ANNOUNCED IN A FEW WEEKS WILL INITIALLY AFFECT SALES ONLY TO WESTERN EUROPE AND OTHER US ALLIES EXCOMMUNISTS WERE LEADING IN POLAND'S PARLIAMENTARY ELECTIONS TWO PARTIES WITH ROOTS IN COMMUNISM APPEARED TO BE WINNING OVER HALF THE SEATS IN PARLIAMENT ACCORDING TO INCOMPLETE RESULTS IT WAS UNLIKELY HOWEVER THAT THEY WOULD JOIN FORCES IN GOVERNMENT INSTEAD POLES MAY GET YET ANOTHER FRAGILE COALITION THAT WOULD TRY TO KEEP POLAND'S TRANSITION TO CAPITALISM ON TRACK THE PARTY OF PRIME MINISTER SUCHOCKA WHO HAS SPEARHEADED THE NATION'S EFFORTS TO DISMANTLE THE SOCIALIST STATE AND DEVELOP A STRONG PRIVATE SECTOR FINISHED THIRD SUCHOCKA'S REFORMS WHILE PRAISED ABROAD HAVE BEEN PAINFUL FOR MANY POLES ESPECIALLY FARMERS THE ELDERLY AND WORKERS IN FAILING STATEOWNED FIRMS SEN MOYNIHAN CALLED THE FINANCING STRATEGY IN CLINTON'S HEALTHCARE PLAN FANTASY THE NEW YORK DEMOCRAT WHO HEADS THE SENATE FINANCE COMMITTEE INDICATED THAT NUMBERS IN THE PLAN ARE ACCURATE GIVEN ASSUMPTIONS FED INTO COMPUTER MODELS BUT HE SEEMED TO QUESTION WHETHER THE ASSUMPTIONS ARE REALISTIC ISRAELI PRIME MINISTER RABIN ENDED TALKS WITH EGYPTIAN LEADER MUBARAK IN ALEXANDRIA AND CALLED FOR ARAB BACKING FOR AN ISRAELIPLO PEACE ACCORD IN CAIRO PLO CHIEF ARAFAT TOLD AN UNENTHUSIASTIC ARAB LEAGUE AUDIENCE THAT HIS PACT WITH ISRAEL ISN'T A SELLOUT OF PALESTINIAN INTERESTS GEORGIAN LEADER SHEVARDNADZE MADE A DESPERATE PLEA FOR THE WORLD TO SAVE HIS NATION FROM DESTRUCTION IN AN ESCALATING CIVIL WAR HE WARNED THAT FIGHTING IN GEORGIA'S ABKHAZIA REGION COULD SPREAD TO RUSSIA SHEVARDNADZE ISSUED HIS APPEAL FROM THE ABKHAZIAN PROVINCIAL CAPITAL SUKHUMI WHICH IS UNDER SIEGE BY SEPARATISTS ISRAEL'S SUPREME COURT CLEARED THE WAY FOR THE DEPORTATION OF JOHN DEMJANJUK REJECTING APPEALS FOR A NEW NAZI WAR CRIMES TRIAL AFTER DELAYING HIS DEPARTURE FIVE TIMES RELATIVES OF THE RETIRED OHIO AUTO WORKER ACQUITTED IN JULY OF BEING DEATH CAMP GUARD IVAN THE TERRIBLE PLANNED TO LEAVE TODAY FOR ISRAEL TO ESCORT HIM BACK TO THE US A US APPEALS COURT SIDED WITH MIT IN GIVING COLLEGES JUDICIAL SUPPORT FOR CARTELLIKE ARRANGEMENTS IN AWARDING FINANCIAL AID THE THREEJUDGE PANEL ORDERED A LOWER COURT TO RECONSIDER MIT'S ARGUMENTS THAT A PRICEFIXING ARRANGEMENT AMONG MIT AND IVY LEAGUE SCHOOLS HAD SOCIAL WELFARE JUSTIFICATIONS YELTSIN TOLD RUSSIA'S REGIONAL LEADERS HE WOULD ACCEPT EARLY PRESIDENTIAL ELECTIONS NEXT SPRING IF THE PARLIAMENT AGREES TO NEW LEGISLATIVE ELECTIONS THIS FALL SEPARATELY YELTSIN DECREED SATURDAY THAT REBEL VICE PRESIDENT RUTSKOI WILL NEED PERMISSION TO ACT IN HIS PLACE INTERNATIONAL PEACE MEDIATORS PRESSED AHEAD WITH THEIR EFFORTS TO SALVAGE A BOSNIAN PEACE SETTLEMENT IN TIME FOR POSSIBLE SIGNING IN SARAJEVO TOMORROW BOSNIA'S MUSLIM PRESIDENT SAID ON SATURDAY HOWEVER THAT HE DOUBTED A PEACE AGREEMENT WOULD BE READY TO BE SIGNED AT THE PLANNED MEETING OF MUSLIM CROAT AND SERB LEADERS UN FORCES COULD HAVE FIRED THE MORTAR SHELLS THAT INADVERTENTLY WOUNDED 34 CIVILIANS JUST OUTSIDE SOMALIA'S LARGEST HOSPITAL ON SATURDAY A UN SPOKESMAN SAID IN MOGADISHU HE ACCUSED FUGITIVE CLAN LEADER AIDID OF DEPLOYING FORCES NEAR THE HOSPITAL IN AN ATTEMPT TO DISCOURAGE RETALIATION GERMAN VOTERS REBUFFED THE TWO MAINSTREAM PARTIES IN HAMBURG STATE ELECTIONS THE SOCIAL DEMOCRATS AND CHRISTIAN DEMOCRATS LOST SUPPORT AS VOTERS SWITCHED TO OTHER PARTIES TO EXPRESS DISAPPROVAL AT THE GOVERNMENT'S FAILURE TO STEM CRIME AND HALT RENT INCREASES TWO RIGHTIST PARTIES WERE ABLE TO CAPTURE A COMBINED TOTAL OF 76 9309200058 930920 BUSINESS BRIEF CHRYSLER CORP CAW UNION MEMBERS VOTE TO RATIFY 3YEAR CONTRACT CANADIAN AUTO WORKERS MEMBERS VOTED 793 IN FAVOR OF RATIFYING A THREEYEAR CONTRACT NEGOTIATED BETWEEN THE UNION AND CHRYSLER CORP LAST WEEK CAW PRESIDENT BUZZ HARGROVE SAID THE PERCENTAGE WAS A LITTLE LOWER THAN WHAT WE WOULD EXPECT FOR A PATTERNSETTING CONTRACT THE AGREEMENT WAS NARROWLY APPROVED BY THE UNION'S SKILLED TRADE WORKERS MANY OF THE SKILLED TRADE AND OTHER WORKERS ARE CONCERNED THEIR INCOMES WILL DROP BECAUSE THEY WILL BE WORKING LESS OVERTIME MR HARGROVE SAID UNDER THE ACCORD CHRYSLER'S MINIVAN ASSEMBLY PLANT IN WINDSOR ONTARIO WILL START UP A THIRD SHIFT IN FEBRUARY THUS REDUCING THE OPPORTUNITY FOR OVERTIME THE SHIFT WILL CREATE AT LEAST 650 JOBS THE COMPANY SAID THE CONTRACT INCLUDES WAGE AND PENSION INCREASES AS WELL AS MORE PAID TIME OFF FOR THE 10500 CAW MEMBERS AT CHRYSLER MORE THAN 6000 VOTED THE UNION WILL TODAY DECIDE WHETHER TO NEGOTIATE NEXT WITH FORD MOTOR CO OR GENERAL MOTORS CORP 9309200057 930920 MARTIN MARIETTA WINS CONTRACT BETHESDA MD MARTIN MARIETTA CORP SAID THE AIR FORCE AWARDED THE COMPANY A 270 MILLION CONTRACT TO BUILD LANTIRN NIGHT VISION SYSTEMS FOR SAUDI ARABIA GREECE AND BAHRAIN THE DEFENSE CONTRACTOR SAID PRODUCTION OF THE AIRCRAFT WILL BEGIN VIRTUALLY IMMEDIATELY AT TWO FLORIDA PLANTS AND WILL CONTINUE THROUGH 1996 LANTIRN SYSTEMS ALLOW PILOTS TO FLY AT LOW LEVELS IN DARKNESS AND BAD WEATHER 9309200056 930920 BUSINESS BRIEF RENOWN INC CLOTHING MARKETER REPORTS PRETAX LOSS FOR ITS 1ST HALF DIRECT COMPARISONS WITH THE YEAREARLIER PERIOD AREN'T AVAILABLE BECAUSE IN FEBRUARY THE COMPANY CHANGED ITS FISCAL YEAR TO END JAN 31 SALES WERE 9592 BILLION YEN THE COMPANY ATTRIBUTED THE RESULTS TO SEVERE SLUGGISHNESS IN DOMESTIC PERSONAL CONSUMPTION EXACERBATED BY AN UNSEASONABLY COOL AND WET SUMMER DESPITE EXPECTATIONS OF A RISE IN SALES FROM BRANDS SUCH AS J CREW A SPOKESMAN SAID THE SITUATION IS LIKELY TO REMAIN SEVERE FOR THE YEAR THE COMPANY LOWERED ITS FULLYEAR SALES AND EARNINGS ESTIMATES AND PLANS TO SUSPEND ITS DIVIDEND FOR THE YEAR 9309200055 930920 FINANCING BUSINESS MERIDIAN DIAGNOSTICS INC MERIDIAN DIAGNOSTICS INC CINCINNATI SAID IT COMPLETED ITS PUBLIC OFFERING OF 10 MILLION PRINCIPAL AMOUNT OF 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2001 NET PROCEEDS ARE ESTIMATED TO BE 93 MILLION PART OF THAT WILL BE USED TO REPAY DEBT FROM MERIDIAN'S RECENT ACQUISITION OF THE MONOSPOT AND MONOLERT PRODUCT LINES FROM ORTHO DIAGNOSTIC SYSTEMS INC A UNIT OF JOHNSON & JOHNSON THE REST WILL BE USED FOR CAPITAL IMPROVEMENTS AND FOR GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE ACQUISITIONS MERIDIAN HAS GRANTED ITS UNDERWRITERS A 30DAY OPTION TO BUY UP TO 15 MILLION PRINCIPAL AMOUNT OF ADDITIONAL DEBENTURES TO COVER OVERALLOTMENTS MERIDIAN DEVELOPS MAKES AND SELLS IMMUNODIAGNOSTIC TEST KITS 9309200054 930920 BUSINESS BRIEF CIVIC BANCORP SECONDQUARTER REVISION WIDENS LOSS TO 33 MILLION CIVIC BANCORP OAKLAND CALIF REVISED ITS SECONDQUARTER RESULTS RECOGNIZING CERTAIN LOSSES THE COMPANY SAID IT HAD EXPECTED TO INCUR IN THE THIRD QUARTER AS RESTATED THE COMPANY'S SECONDQUARTER LOSS WAS 33 MILLION OR 131 A SHARE THE COMPANY PREVIOUSLY REPORTED A LOSS OF 980000 OR 39 CENTS A SHARE CIVIC SAID ITS SHAREHOLDERS' EQUITY AT JUNE 30 WAS 245 MILLION INSTEAD OF THE 268 MILLION PREVIOUSLY REPORTED THE COMPANY SAID IT RESTATED EARNINGS BECAUSE CERTAIN REAL ESTATE IT ACQUIRED THROUGH FORECLOSURE IS LIKELY TO BE SOLD IN THE THIRD QUARTER AT NET PRICES BELOW APPRAISED VALUE THE COMPANY SAID IT HAD CARRIED THE ASSETS ON ITS BOOKS AT APPRAISED VALUE CIVIC SAID THE RESTATEMENT WON'T AFFECT YEARTODATE RESULTS AT THE END OF THE THIRD QUARTER IT ALSO SAID IT DOESN'T EXPECT THE RESTATEMENT TO AFFECT ITS EFFORTS TO RAISE AS MUCH AS 115 MILLION IN NEW CAPITAL THROUGH A RIGHTS OFFERING OR OTHER ANNOUNCED RESTRUCTURING PLANS FOR ITS SUBSIDIARY CIVICBANK OF COMMERCE 9309200053 930920 BUSINESS BRIEF SUMITOMO METAL MINING CO FORECAST OF PRETAX PROFIT FOR FISCAL YEAR IS CUT 83 JAPAN'S SUMITOMO METAL MINING CO A MAJOR NONFERROUSMETALS MANUFACTURER SLASHED ITS FORECAST 83 FOR CONSOLIDATED PRETAX PROFIT IN THE CURRENT FISCAL YEAR THE MOVE REFLECTS A WORSENING BUSINESS CLIMATE THE COMPANY SAID IN A NEWS RELEASE WHICH IT ATTRIBUTES TO DOMESTIC ECONOMIC WEAKNESS SOFT OVERSEAS MARKETS AND THE NEGATIVE EFFECT OF A STRONG YEN CONLSOLIDATED PRETAX PROFIT FOR THE YEAR THAT BEGAN APRIL 1 IS NOW FORECAST AT 700 MILLION YEN 67 MILLION DOWN FROM A FORECAST OF FOUR BILLION YEN 384 MILLION NET PROFIT IS EXPECTED TO BE THREE BILLION YEN DOWN 14 FROM THE EARLIER FORECAST FOR THE PRIOR FISCAL YEAR THE COMPANY POSTED PRETAX PROFIT OF 951 BILLION YEN AND NET PROFIT OF 62 BILLION YEN ON SALES OF 50795 BILLION YEN THE COMPANY ALSO CUT ITS FORECAST FOR UNCONSOLIDATED FULLYEAR RESULTS IT NOW EXPECTS UNCONSOLIDATED PRETAX PROFIT OF 15 BILLION YEN DOWN 63 FROM EARLIER EXPECTATIONS OF FOUR BILLION YEN 9309200052 930920 BUSINESS BRIEF AMERICAN ECOLOGY CORP CALIFORNIA APPROVES A SITE FOR RADIOACTIVE DISPOSAL AMERICAN ECOLOGY CORP RECEIVED APPROVAL FROM THE STATE OF CALIFORNIA FOR ITS LOWLEVEL RADIOACTIVE DISPOSAL SITE IN WARD VALLEY THE SITE SITUATED ON FEDERAL LAND IN SOUTHERN CALIFORNIA NEAR THE NEVADA BORDER HAS BEEN UNDER REVIEW BY THE CALIFORNIA DEPARTMENT OF HEALTH SERVICES SINCE 1989 EXPECTED TO OPEN BY THE END OF 1994 AMERICAN ECOLOGY SAID REVENUE FROM THE SITE IS ESTIMATED AT 20 MILLION A YEAR THE COMPANY HAD 1992 REVENUE OF 70 MILLION ALTHOUGH THIS IS THE FIRST LOWLEVEL RADIOACTIVE WASTE DISPOSAL FACILITY TO BE LICENSED IN THE US IN ABOUT 20 YEARS THE US DEPARTMENT OF INTERIOR STILL REQUIRES ASSURANCE THAT THE SITE WON'T CONTAMINATE FEDERAL LAND A FACTFINDING MISSION COORDINATED BY GOV PETE WILSON OF CALIFORNIA IS EXPECTED TO BE COMPLETED BY THE END OF THE YEAR SAID AMERICAN ECOLOGY THE FEDERAL LAND WILL THEN BE TRANSFERRED TO THE STATE OF CALIFORNIA AND LEASED BACK TO AMERICAN ECOLOGY 9309200051 930920 NATIONAL HEALTH LABS SAYS US AGAIN PROBES BILLING SAN DIEGO NATIONAL HEALTH LABORATORIES INC WHICH IN DECEMBER PAID A RECORD 1114 MILLION SETTLEMENT FOR MEDICARE FRAUD ACKNOWLEDGED THAT IT RECEIVED A SUBPOENA INDICATING THE GOVERNMENT IS AGAIN INVESTIGATING ITS BILLING PRACTICES THE MEDICAL TESTING CONCERN'S STATEMENT CAME IN RESPONSE TO QUESTIONS ABOUT A REPORT ON CBS NEWS'S 60 MINUTES LAST NIGHT NHL SAID IT RECEIVED A SUBPOENA DOCUMENT REQUEST RELATING TO ITS COMPLIANCE POLICIES AND PRACTICES ON WEDNESDAY FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES' OFFICE OF INSPECTOR GENERAL THE GOVERNMENT AGENCY THAT PROBES MEDICARE FRAUD NHL SAID IT IS COMPLYING WITH THE SUBPOENA AND HAS MET WITH OFFICIALS OF THE AGENCY GOVERNMENT OFFICIALS RARELY DISCUSS OPEN INVESTIGATIONS AND NONE KNOWLEDGEABLE ABOUT THE NHL CASE RETURNED CALLS OVER THE WEEKEND NHL CALLED UTTERLY FALSE CBS NEWS'S CHARGES THAT THE LAB PERFORMS AND BILLS FOR MEDICAL TESTS THAT AREN'T ORDERED BY DOCTORS THE BROADCAST CONTAINS EXTREMELY SERIOUS ERRORS OF FACT AND INTERPRETATION NHL SAID IN A STATEMENT ACCORDING TO THE REPORT FOUR CBS NEWS STAFF MEMBERS SUBMITTED PRESCRIPTIONS FOR ROUTINE BLOOD TESTS TO TWO DIFFERENT NHL LABS IN EACH INSTANCE THE LAB CHARGED FOR TWO EXTRA TESTS THAT WEREN'T ORDERED BY THE DOCTORS THE REPORT SAID 9309200050 930920 BUSINESS BRIEF WANG LABORATORIES INC AMEX IS SET TO END TRADING IN COMPUTER FIRM'S ISSUES THE AMERICAN STOCK EXCHANGE SAID IT WILL CEASE TRADING IN WANG LABORATORIES INC COMMON STOCK AND DEBT SECURITIES ON THE DAY WANG'S REORGANIZATION PLAN IS CONFIRMED THE EXCHANGE SAID A CONFIRMATION HEARING IS SCHEDULED FOR TODAY IN US BANKRUPTCY COURT AND CONFIRMATION COULD OCCUR AT THE END OF THE HEARING THE AMERICAN STOCK EXCHANGE SAID THAT UNDER THE LOWELL MASS COMPUTER SOFTWARE AND SERVICE COMPANY'S REORGANIZATION PLAN HOLDERS OF EXISTING WANG COMMON STOCK ON THE RECORD DATE WHICH WILL BE FIVE BUSINESS DAYS AFTER CONFIRMATION WILL HAVE THEIR SHARES CONVERTED INTO NEW WARRANTS AT A RATIO PRESCRIBED IN THE COMPANY'S PLAN THE COMPANY HAS ADVISED THAT NO TRANSFERS AFTER THE RECORD DATE WILL BE RECOGNIZED AND THAT SUBSEQUENTLY ALL THE OLD SECURITIES WILL BE CANCELED HOLDERS OF WANG DEBT SECURITIES ON THE RECORD DATE WILL BE ELIGIBLE TO RECEIVE NEW COMMON SHARES THE EXCHANGE SAID 9309200049 930920 MARKETING & MEDIA MERCEDESBENZ RESCINDS ITS MAGAZINE AD POLICY NEW YORK AP MERCEDESBENZ OF NORTH AMERICA SAID IT RESCINDED A POLICY ASKING MAGAZINES TO AGREE IN WRITING NOT TO RUN ADVERTISEMENTS FOR THE GERMAN AUTO MAKER NEAR ARTICLES DEEMED TO BE ANTIGERMAN THE REVERSAL WAS IN RESPONSE TO CRITICISM THAT THE POLICY BEGUN IN AUGUST COULD LEAD TO CENSORSHIP SAID A MERCEDES SPOKESMAN MERCEDES HAD DENIED THAT THE POLICY COULD STIFLE EDITORIAL CONTENT AND SAID IT WAS SIMPLY FORMALIZING A WIDESPREAD INDUSTRY PRACTICE IT SAID IT RETURNED ALL SIGNED AGREEMENTS TO MAGAZINES THE US UNIT OF DAIMLERBENZ AG SAID ABOUT HALF OF ROUGHLY 30 PUBLICATIONS THAT WERE ASKED TO SIGN HAD RETURNED SIGNED AGREEMENTS 9309200048 930920 BUSINESS BRIEF TIME WARNER INC FIRM BUYS REMAINING HALF OF SIX FLAGS FOR 70 MILLION TIME WARNER INC SAID IT PURCHASED THE REMAINING 50 INTEREST IN SIX FLAGS THEME PARKS FOR 70 MILLION THE NEW YORK MEDIA AND ENTERTAINMENT COMPANY WHICH PAID 50 MILLION FOR HALF OF THE VENTURE IN LATE 1991 PURCHASED THE REMAINING INTEREST FROM BLACKSTONE GROUP AND WERTHEIM SCHRODER & CO TIME WARNER SAID THE THEME PARKS HAD RECORD REVENUE AND EARNINGS IN 1992 AND 1993 IS SHAPING UP TO BE ANOTHER RECORD YEAR ABOUT 85 OF THE US POPULATION IS WITHIN A DAY'S DRIVE OF A SIX FLAGS PARK 9309200047 930920 TINY DUST MITE IS CITED FOR MIGHTY ALLERGY WOES LONDON REUTER INVISIBLE MITES CAUSED BY HOUSE DUST MAKE LIFE A MISERY FOR MILLIONS OF PEOPLE ACCORDING TO A BRITISH STUDY THE STUDY SHOWED THAT ONE IN FOUR BRITONS OR MORE THAN 11 MILLION PEOPLE SUFFER FROM ALLERGYLINKED ASTHMA ECZEMA OR RHINITIS CAUSED BY DROPPINGS OF THIS MICROSCOPIC CREATURE WHICH FEEDS OFF HUMAN SKIN FLAKES BEDS AND BEDDING ARE A MAJOR BREEDING GROUND FOR THE MITES TWOTHIRDS OF THE 3700 PEOPLE INTERVIEWED IN THE POLL COMMISSIONED BY THE BRITISH ALLERGY FOUNDATION SAID THEIR SOCIAL OR WORK LIVES WERE AFFECTED BY THEIR CONDITION AND ONE IN SIX HAD NEEDED TO TAKE TIME OFF FROM WORK FOR TOO LONG TREATMENT FOR ALLERGY HAS RELIED ON THE USE OF DRUGS IT'S HIGH TIME WE STARTED TO LOOK MORE CAREFULLY AT PREVENTIVE TREATMENT SAID PROF ROBERT DAVIES CHAIRMAN OF THE FOUNDATION RECOMMENDED MEASURES INCLUDE WASHING BED SHEETS AT HIGH TEMPERATURES USING A VACUUM CLEANER WITH SPECIAL FILTER TO PREVENT DUST FROM LEAKING BACK INTO THE ROOM DAMP DUSTING SHAMPOOING CARPETS AND SPRAYING INSECTICIDES 9309200046 930920 BUSINESS BRIEF US HOME CORP ONETIME 3RDPERIOD GAIN OF 45 MILLION IS EXPECTED US HOME CORP SAID THIRDQUARTER EARNINGS WILL INCLUDE A ONETIME GAIN OF 45 MILLION OR 390 A SHARE FROM RECOGNIZING DEFERRED TAX ASSETS RELATED TO TAXLOSS CARRYFORWARDS THE HOUSTON DEVELOPER AND HOME BUILDER WHICH EMERGED FROM BANKRUPTCYCOURT PROTECTION IN JUNE ALSO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 60 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SUBORDINATED DEBENTURES DUE 2005 PROCEEDS WILL TO BE USED TO REDUCE INDEBTEDNESS AND FOR WORKING CAPITAL DILLON READ & CO IS THE UNDERWRITER IN THE YEAREARLIER THIRD QUARTER US HOME EARNED 64 MILLION OR 14 CENTS A SHARE BASED ON 453 MILLION SHARES OUTSTANDING AT THE END OF JUNE US HOME HAD 115 MILLION SHARES OUTSTANDING 9309200045 930920 BUSINESS BRIEF ENNIS BUSINESS FORMS INC DROP IN EARNINGS IS FORECAST COMPANY'S FIRST IN 17 YEARS ENNIS BUSINESS FORMS INC SAID IT EXPECTS LOWER EARNINGS FOR ITS CURRENT FISCAL YEAR THE FIRST TIME IN 17 YEARS FOR A DECLINE FROM THE PREVIOUS YEAR FOR ITS YEAR ENDING FEB 28 THE ENNIS TEXAS BUSINESSPRODUCTS FIRM SAID NET INCOME WOULD RANGE FROM 175 MILLION TO 195 MILLION OR 105 PER SHARE TO 116 A SHARE IN THE PREVIOUS YEAR ENNIS EARNED 213 MILLION OR 121 A SHARE THE COMPANY CITED COMPETITIVE CONDITIONS AS THE REASON FOR THE DECLINE ENNIS ALSO SAID IT HAS DECIDED TO TEMPORARILY SUSPENDED PURCHASES OF ITS OWN COMMON STOCK THE FIRM ALSO SAID IT IS CONSIDERING THE DESIRABILITY OF BECOMING MORE AGGRESSIVE IN THE ACQUISITION AREA THE COMPANY HAS ABOUT 15 MILLION IN CASH ON HAND 9309200044 930920 NOT HOME ALONE JOBLESS MALE MANAGERS PROLIFERATE IN SUBURBS CAUSING SUBTLE MALAISE QUIETLY DESPERATE THEY SEEK WORK GO TO LIBRARIES UPSET FAMILY MEMBERS EXPERIENCING A SORT OF DEATH' BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL WAYNE PA AS LAWN SPRINKLERS SWISH ALONG WALNUT ROAD JOHN PARKER RECALLS THE DAY HE REALIZED HE WASN'T HOME ALONE IT WAS A WEEKDAY IN THIS AFFLUENT SUBURB ON PHILADELPHIA'S MAIN LINE MR PARKER HAD RECENTLY LOST HIS JOB AT IBM HIS WIFE WAS AT WORK HIS TWO CHILDREN AT SCHOOL CLOISTERED INSIDE HIS SIXBEDROOM COLONIAL MR PARKER SAT RUNNING OFF RESUMES ON A LASER PRINTER ONE OF THE OTHER THREE MEN WAS BILL KANE WHO HAD RECENTLY LOST HIS JOB AS VICE PRESIDENT OF TECHNOLOGY AT A PHILADELPHIA BANK WHAT'S STRUCK ME MR KANE SAYS STILL UNEMPLOYED 16 MONTHS LATER IS THAT THERE AREN'T MANY MOMS AND KIDS AROUND MOST OF THE WOMEN ARE OUT WORKING MEN SUCH AS MR KANE NOW ARE SCATTERED THROUGH SUBURBAN AMERICA VICTIMS OF CORPORATE FAILURES AND DOWNSIZING THEY FIND THEMSELVES USUALLY FOR THE FIRST TIME STRANDED ON STILL SUBURBAN STREETS WHERE ADULT MALES OTHER THAN MAILMEN WERE ONCE A RARE SIGHT ON WEEKDAYS GENERALLY MIDDLEAGED THEY CONVERT BEDROOMS INTO MAKESHIFT OFFICES AND SEARCH FOR JOBS OR FIND PARTTIME WORK AND CALL THEMSELVES CONSULTANTS A FEW VOLUNTEER AT SCHOOLS CHURCHES AND SPORTS TEAMS BUT MOST OF THEM REMAIN HIDDEN AND QUIETLY DESPERATE BURDENSOME TO THEIR FAMILIES AND ASHAMED OF THEIR PLIGHT A LOT OF MEN HERE ARE GOING THROUGH A SORT OF DEATH SAYS THE REV DR GEORGE HOLLINGSHEAD AN ASSOCIATE PASTOR AT THE BRYN MAWR PRESBYTERIAN CHURCH AT THE HEART OF THE MAIN LINE THEY THOUGHT THEY WERE GUARANTEED SUCCESS BECAUSE THEY WENT TO THE RIGHT SCHOOLS MARRIED THE RIGHT WOMEN JOINED THE RIGHT COMPANIES AND CLUBS WHEN IT ALL GOES WRONG THEY CAN'T COPE THE MAIN LINE TYPIFIES THE MALAISE IN WHITECOLLAR SUBURBIA A STRING OF LEAFY ENCLAVES RUNNING WEST ALONG THE RAILROAD FROM PHILADELPHIA IT IS RENOWNED AS A BASTION OF STODGY AFFLUENCE COUNTRY CLUBS AND PREPPY FASHION BUT CUTBACKS BY COMPANIES SUCH AS GENERAL ELECTRIC CO AND SMITHKLINE BEECHAM CORP HAVE COST MANY PEOPLE THEIR JOBS AND CAUSED OTHERS TO FEAR FOR THEIRS OR TAKE EARLY RETIREMENT IN DISCREET STATUSCONSCIOUS PLACES SUCH AS THE MAIN LINE UNEMPLOYMENT ISN'T SOMETHING YOU ADVERTISE AT FIRST I DIDN'T EVEN WANT TO STEP OUTSIDE DURING BUSINESS HOURS THE 43YEAROLD MR PARKER SAYS I FELT AS THOUGH NEIGHBORS WOULD LOOK AT ME AND WONDER WHY I WAS PLAYING HOOKY WHEN NOT HIDDEN INSIDE RANCH HOMES AND SPLIT LEVELS THESE NEWLY UNEMPLOYED ARE PARTLY CAMOUFLAGED BY THE MANY MEN NOW WORKING AT HOME OR IN SUBURBAN OFFICES EVEN SO ANN KAJDASZ WHO WORKS AT A WAYNE PUBLIC LIBRARY SAYS SHE STARTED NOTICING ABOUT THREE YEARS AGO THAT MIDDLEAGED MEN WERE FREQUENTING LIBRARIES ON WEEKDAYS USUALLY TO READ PUBLICATIONS SUCH AS DUN & BRADSTREET'S MILLION DOLLAR DIRECTORY OR DOW JONES'S NATIONAL BUSINESS EMPLOYMENT WEEKLY THEY OFTEN HAVE SHORT FUSES AND TREAT YOU LIKE THEIR SECRETARY SAYS MS KAJDASZ A REFERENCE LIBRARIAN AND AT FIRST THEY ALWAYS COME IN ALL SPIFFY IN SUITS AND TIES AS THE MONTHS PASS THE MEN TEND TO MELLOW THEY BECOME SCRUFFIER AND SCRUFFIER SHE SAYS AND SOMETIMES THEY TALK ABOUT THEIR FEAR OF NEVER FINDING WORK AGAIN CHURCHES ALSO ARE SWAMPED BY MEN SEEKING SUPPORT AT BRYN MAWR PRESBYTERIAN PASTORS SAY THEY NOW COUNSEL DOZENS OF THE UNEMPLOYED COMPARED WITH A HANDFUL IN THE 1980S BUT THE JOBLESS SEEK HELP QUIETLY THEIR FAMILIES AVOID SOCIAL FUNCTIONS AND SUNDAY SERVICES THEY OFFER NEIGHBORS VAGUE REASONS WHY THEY ARE AT HOME SAYING FOR INSTANCE THEY ARE WORKING IN FINANCE AND THEY EXHAUST THEIR SAVINGS EVEN TAKE AN ADVANCE ON THEIR INHERITANCE FROM AGING PARENTS RATHER THAN SELL A SECOND HOME ON THE JERSEY SHORE OR PULL CHILDREN OUT OF PRIVATE SCHOOL PEOPLE WILL GO THROUGH AUNT MARY'S LAST DIME TO KEEP THEIR IMAGE INTACT SAYS THE REV DR MARGARET ANNE FOHL AT THE BRYN MAWR CHURCH ONE PARISHIONER EVEN LET HIS HEALTH INSURANCE LAPSE THE CHURCH HELPED ARRANGE FREE MEDICAL CARE WHEN HE LATER HAD A HEART ATTACK MOST OF THESE MEN ARE IN THEIR 40S AND 50S WITH WORKING WIVES AND TEENAGE CHILDREN WHO AREN'T AROUND MUCH UNLIKE MANY WOMEN AT HOME WITH CHILDREN THE MEN ALSO AREN'T ACCUSTOMED TO MEETING FOR COFFEE OR JOINING VOLUNTEER GROUPS NOT SURPRISINGLY SOME RESORT TO THE STEREOTYPICAL STANDBYS OF LONELY HOUSEWIVES LIQUOR AND DAYTIME SOAP OPERAS I GREW UP WITH A ROSY OZZIEANDHARRIET IMAGE OF SUBURBIA SAYS MR KANE THE FORMER BANKER BUT NOW THAT I'M HERE ALL DAY I REALIZE THAT WAS SUGARCOATED PABLUM THE QUIET CAN DRIVE YOU MAD MR KANE WHO IS 46 SPENT A RECENT MORNING PADDING AROUND HIS MOCKTUDOR HOUSE IN BARE FEET SHORTS AND POLO SHIRT FIELDING OCCASIONAL PHONE CALLS FROM CLIENTS OF HIS PARTTIME CONSULTANCY BUT NO CALLS FROM PROSPECTIVE EMPLOYERS AT NOON HE OFTEN SWINGS A NINEIRON IN A PARK BEHIND HIS HOME WHERE ANOTHER SEMIEMPLOYED MAN HITS BASEBALLS TO HIS DOG HE ALSO FILLS TIME BY BUILDING A BACK FENCE SOMETHING I WOULD HAVE PAID SOMEONE ELSE TO DO A FEW YEARS AGO WITH NO JOB INTERVIEWS ON TAP MR KANE'S ONLY OUTING ON A RECENT DAY WAS TO PICK UP HIS DAUGHTER AT LACROSSE CAMP AND FERRY HER TO A BABYSITTING JOB DOWN WALNUT ROAD PAST WATCH CHILDREN SIGNS AND TWOCAR GARAGES WITH BASKETBALL HOOPS MR KANE'S NEIGHBOR MR PARKER TELLS OF HIS OWN JOB SEARCH AFTER LOSING HIS JOB AT INTERNATIONAL BUSINESS MACHINES CORP HE TURNED A GUEST BEDROOM INTO A VERITABLE PUBLISHING HOUSE OF RESUMES AND COVER LETTERS HE ALSO WENT TO A JOB FAIR FOR DISPLACED COMPUTER PROFESSIONALS ONLY TO FIND THE LINE GOING OUT THE DOOR HE SAYS EVERYBODY WAS MY AGE WEARING THE SAME CLOTHES AS ME AND CARRYING THE SAME LASERPRINTED RESUME AFTER MORE THAN A YEAR OF UNEMPLOYMENT HE LANDED A JOB AS A SALES REPRESENTATIVE FOR A PHONE COMPANY ONLY TO BE LET GO AGAIN LAST JUNE SUCH UNCERTAINTY IN THE JOB MARKET ISN'T LIKELY TO GO AWAY SOON ECONOMISTS SAY 40 OF THE NEWLY UNEMPLOYED IN THE RECENT RECESSION WERE WHITECOLLAR UP FROM 22 IN THE EARLY 1980S WITH WHITECOLLAR JOB GROWTH STAGNANT AND MANY OF THE CUTBACKS DUE TO LONGTERM RESTRUCTURING RATHER THAN CYCLICAL REDUCTIONS THERE'S SIMPLY NO PLACE FOR THE JOBLESS TO GO SAYS ERICA GROSHEN A LABOR ECONOMIST AT THE FEDERAL RESERVE BANK OF CLEVELAND DESPITE THEIR GRIM PROSPECTS MANY MEN ARE RELUCTANT TO ATTEND THE SUPPORT GROUPS FOR THE WHITECOLLAR JOBLESS NOW SPROUTING IN SUBURBAN AREAS SUCH AS THE MAIN LINE BRYN MAWR PRESBYTERIAN RUNS A GROUP CALLED EXECUTIVES IN TRANSITION AND HAS COMPILED A LONG LIST OF ELIGIBLE MEN BUT JERRY YOUNG A LAIDOFF RCA CORP EXECUTIVE WHO HELPED FOUND THE GROUP SAYS HE HAS PERSUADED ONLY A FEW TO ATTEND EVEN THOUGH HE IS BESIEGED BY CALLS FROM WIVES ASKING HIM TO INVITE THEIR HUSBANDS THE MEN ARE RELUCTANT PARTLY BECAUSE GOING WOULD EXPOSE THEIR UNEMPLOYMENT IN MR YOUNG'S VIEW GETTING GUYS OUT OF THE HOUSE IS ONE OF THE GROUP'S MAIN MISSIONS SO MANY MEETINGS ARE HELD AT 9 AM ON MONDAYS ONE GATHERING BEGINS WITH SMALL TALK ABOUT OTHERS WHO HAD RECENTLY LOST JOBS OR IN THE PARLANCE OF THE WHITECOLLAR UNEMPLOYED BEEN SHOT RIFFED WHACKED OR EXCESSED THEN LIKE FRIENDS INQUIRING ABOUT AN ELDERLY PARENT'S HEALTH THEY CHECK ON EACH OTHER'S PROSPECTS ANY WORD NOT YET BUT I'M STILL HOPING AND YOU NETWORKING FATIGUE STILL NOTHING JERRY SCOTT A FORMER CHIEF INFORMATION OFFICER SAYS HE USED TO FEEL A PANG WHEN OTHERS GOT A JOB I COULDN'T HELP WONDERING WHAT I WAS DOING WRONG THAT THEY WERE DOING RIGHT HE SAYS BUT HE ALSO NOTES THAT FEW REHIRES GET JOBS THEY REALLY WANT HE HIMSELF WAS RECENTLY REEMPLOYED AT A 45 MARKDOWN FROM HIS FORMER PAY HE SAYS WHILE MANAGING THE SAME NUMBER OF PEOPLE AS 20 YEARS AGO WE'RE WORKING ON THE CHEAP AND WE'RE NOT FULLY UTILIZED COMMENTS BOB MOYER WHO FOUNDED THE GROUP WITH MR YOUNG AND HAS RETURNED TO WORK DID WE WIN OR DID WE JUST STOP THE BLEEDING ALSO DESPITE MUCH DEBATING ABOUT CUSTOMIZING COVER LETTERS MOST GROUP MEMBERS WHO HAVE FOUND JOBS SAY THEY DID SO THROUGH BLIND LUCK MR SCOTT SENT OUT ABOUT 3000 LETTERS THEN FOUND A JOB WHEN A FRIEND DURING COCKTAILS AT A COUNTRY CLUB OVERHEARD TALK OF AN OPENING LATER THE TALK AT THE MEETING TURNS FROM JOBSEARCH TACTICS TO SHAME FAMILY PAIN AND FINANCES MOST OF THE MEN HAD EARNED 100000 OR MORE A YEAR INITIALLY SEVERANCE PAY SAVINGS OR A SPOUSE'S EARNINGS HELPED BUFFER THE LOSS OF INCOME BUT EVENTUALLY MANY START TO FEEL THE FINANCIAL PINCH SEVERAL HAVE TAKEN PARTTIME 5ANHOUR WORK PREPARING TAXES AT H & R BLOCK INC MR SCOTT DID CONSULTING WORK WITHOUT PAY TO FRESHEN HIS RESUME PHIL PURDY A FORMER PLANT MANAGER DROVE A LIMOUSINE PART TIME HIS WIFE WHO ALREADY HAD THREE YOUNG CHILDREN TO LOOK AFTER TOOK IN A DAYCARE CHILD TO QUALIFY FOR HEALTH BENEFITS THAT ENDED WITH HIS JOB THE MEN ALSO HAVE LEARNED TO LET GO OF LUXURIES THAT THEY ONCE TOOK FOR GRANTED MR YOUNG SAYS HE NOW SHOPS WITH COUPONS AND RECENTLY BOUGHT THREE PAIRS OF BOXER SHORTS FOR 9 I REALIZED I DON'T NEED GUCCI OR PUCCI OR RALPH LAUREN HE QUIPS KMART IS JUST FINE HE ALSO STRIKES A COMMON CHORD WHEN HE BOASTS OF NEWFOUND SHOPPING SKILLS I CHALLENGE ANY FEMALE IN A FIVEMILE RADIUS HE SAYS TO FIND THE RIGHT AISLE FASTER THAN ME AT SUPER FRESH SUPERMARKET AMID APPLAUSE HE ADDS JUST TRY ME WORCESTERSHIRE SAUCE AISLE SEVEN BUT THE ROOM SOON BECOMES QUIET FOR LATEMIDDLEAGED MEN WHO EXPECTED TO BE AT THE PEAK OF THEIR STATUS AND EARNING POWER THE SUDDEN LOSS OF ALTITUDE CAN BATTER SELFESTEEM THAT MAY ALREADY BE WOBBLING DUE TO ADVANCING AGE WHEN EACH OF US GOT MARRIED THE IMPLIED CONTRACT WAS THAT WE'D BE THE BREADWINNER SAYS BEN LINFOOT WHO DISCOVERED HE COULDN'T GET A LOAN TO PAY FOR HIS DAUGHTER'S COLLEGE TUITION MR SCOTT ADDS THAT HE DIDN'T COME TO GRIPS WITH HIS DOWNWARD MOBILITY UNTIL A BANK REFUSED HIM A SECOND MORTGAGE BECAUSE HE COULDN'T SHOW ANY INCOME HERE I WAS SOMEONE WHO HAD HELPED DOWNSIZE COMPANIES IN THE PAST BEING CUT DOWN TO SIZE MYSELF HE SAYS MEN SUCH AS 55YEAROLD MR SCOTT ALSO HAVE HAD TO LEARN TO TALK ABOUT THEIR PAIN WHILE UNEMPLOYED HE OFTEN TOOK LONG WALKS AND SCOUTED OUT NEIGHBORS WHO ALSO HAD THEIR CARS IN THE DRIVEWAY SOMETIMES HE WOULD STOP IN FOR A BEER ONE DAY SO BLUE THAT HE THOUGHT HE WOULD BURST INTO TEARS HE CALLED ANOTHER MAN IN THE SUPPORT GROUP I FOUND THAT EASIER THAN TALKING TO MY WIFE HE SAYS SHE'S GOT ENOUGH STRESS ALREADY JUST HOW MUCH STRESS SUCH WIVES FEEL BECOMES OBVIOUS THE NEXT DAY WHEN SEVERAL GATHER AT THE CHURCH FOR THEIR OWN INFORMAL SUPPORT GROUP UNLIKE THE MEN THE WOMEN MEET FOR BROWNBAG LUNCHES BECAUSE ALMOST ALL OF THEM NOW WORK THESE WERE SUPPOSED TO BE OUR EMPTYNEST YEARS WHEN WE TRAVELED WITH OUR HUSBANDS ON BUSINESS PLAYED TENNIS OR PURSUED A DOCTORATE SAYS CAROL LINFOOT WHO FINDS HERSELF INSTEAD AT 51 WORKING AS A TEACHER HER FIRST FULLTIME JOB IN MORE THAN 20 YEARS LATER WORKING 10 HOURS A DAY MS MOYER FOUND THE ROLE REVERSAL AWKWARD I'VE HEARD MYSELF SAYING THINGS THAT USED TO ANNOY ME WHEN HE SAID THEM SHE SAYS IF HE WOULD CALL TO ASK WHEN SHE WAS COMING HOME FOR DINNER SHE WOULD GIVE THE SAME IRRITABLE REPLY HE USED TO HOW DO I KNOW WHENEVER I GET DONE NOR ARE CHILDREN ESPECIALLY STATUSOBSESSED TEENAGERS ANY HELP SALLY YOUNG TELLS OF TAKING HER DAUGHTER TO A JUNIOR LEAGUE THRIFT SHOP FOR BLUE JEANS THE 15YEAROLD REFUSED TO TRY ANYTHING ON MUTTERING I'LL DIE IF ANY OF MY FRIENDS SEE ME HERE SOME OF THE WOMEN'S PARENTS AGGRAVATE THE PAIN BY WONDERING ALOUD WHAT THEIR SONINLAWS HAVE COME TO ACQUAINTANCES MAY CAUSE PROBLEMS TOO BY SHUNNING THE WOMEN AT PARTIES EVEN CLOSE FRIENDS CAN BE CLUMSY ON ONE THING WIVES AND HUSBANDS AGREE UNEMPLOYMENT HAS CHANGED THEIR OUTLOOK FOREVER WHETHER OR NOT THE MEN FIND NEW WORK GONE MOST STRIKINGLY IS THE BLIND CORPORATE LOYALTY THAT SUSTAINED THEM THROUGH 14HOUR DAYS AND REPEATED RELOCATIONS BACK ON WALNUT ROAD IN MR PARKER'S BEDROOM/OFFICE A PLAQUE RECOGNIZING HIS WORK FOR THE BOY SCOUTS NOW HANGS BESIDE AN OLDER FRAMED CERTIFICATE IN RECOGNITION OF OUTSTANDING ACHIEVEMENT AT IBM HIS WIFE SAYS SHE IS PLEASED THAT HER HUSBAND LEARNED TO NO LONGER DEFINE HIS EGO SOLELY IN TERMS OF HIS JOB BUT LIKE OTHER WIVES SHE THINKS THAT HER FAMILY AND SOCIETY AT LARGE STILL ISN'T READY TO ACCEPT THIS NEW SOCIAL PHENOMENON THE STAYATHOME SUBURBAN FATHER IN PARTICULAR SHE WORRIES THAT UNEMPLOYMENT ERODES CHILDREN'S RESPECT FOR THEIR FATHERS DURING ONE FAMILY DISCUSSION OF FINANCES HER 12YEAROLD SON SUMMED UP HIS FEELINGS WITH AN EXASPERATED REMARK YOU DON'T WORK DAD IT'S NOT YOUR MONEY THANKFULLY MR PARKER FINDS HIS TRIALS OVER AT LEAST FOR THE MOMENT LAST WEEK HE RETURNED TO WORK AT A SMALL COMPUTER COMPANY WHILE OVERJOYED TO BE BACK AT WORK HE RECOGNIZES THE PRICE HE WILL PAY WATCHING MY SON PLAY SPORTS OR MY DAUGHTER DANCE BALLET ALL THOSE THINGS WILL FALL OUT MY LIFE AGAIN BECAUSE I'M WORKING SUCH LONG HOURS HE SAYS HE ALSO FINDS THE JOB LANDSCAPE CHANGED SOME OF HIS COWORKERS HAVE HAD SEVERAL JOBS OVER THE PAST FIVE YEARS AND HE HAS BEEN STRUCK BY THE RESPONSE OF HIS FRIENDS WHO HAVE GREETED THE NEWS OF HIS REEMPLOYMENT WITH AN AVALANCHE OF CARDS AND CALLS GETTING A JOB USED TO BE SOMETHING YOU JUST DID HE SAYS NOW IT'S ALMOST LIKE YOU'VE RUN A MARATHON AND WON 9309200043 930920 BUSINESS BRIEF UNIONFED FINANCIAL CORP INVESTOR COMMITMENTS MEET REGULATORS' CAPITAL DEMANDS UNIONFED FINANCIAL CORP IN A MOVE TO AVOID SEIZURE OF ITS UNION FEDERAL BANK BY REGULATORS SAID IT OBTAINED COMMITMENTS FROM INVESTORS TO BUY ENOUGH STOCK TO BRING THE SAVINGS BANK INTO COMPLIANCE WITH FEDERAL CAPITAL REQUIREMENTS UNIONFED BREA CALIF SAID INVESTORS HAVE COMMITTED TO BUY STOCK VALUED AT MORE THAN 41 MILLION WHICH WOULD RESULT IN NET PROCEEDS OF ABOUT 39 MILLION ON JUNE 3 THE OFFICE OF THRIFT SUPERVISION TOLD THE BANK IT WAS CONSIDERED CRITICALLY UNDERCAPITALIZED UNIONFED SAID LAST MONTH IT NEEDED 375 MILLION VIA A STOCK OFFERING TO COME INTO COMPLIANCE IN A RIGHTS OFFERING THE COMPANY IS OFFERING UP TO 82 MILLION COMMON SHARES TO STOCKHOLDERS WHO WILL BE ABLE TO BUY SHARES AT 175 EACH BY THURSDAY THE COMPANY SAID IT HAD RECEIVED SUBSCRIPTIONS FOR 106 MILLION OF STOCK IN ADDITION IT SAID IT RECEIVED WRITTEN COMMITMENTS FROM OTHERS TO BUY COMMON STOCK VALUED AT 305 MILLION 9309200042 930920 REGULATORS WORK TO REVAMP COMMUNITYLENDING RULES WASHINGTON NEW COMMUNITYREINVESTMENT RULES FOR BANKS AREN'T LIKELY TO GRANT LENDERS THAT MEET CERTAIN STANDARDS A SAFE HARBOR FROM REGULATORY AND LOCAL SCRUTINY SUPERVISORS TOLD A CONGRESSIONAL PANEL IN ADDITION FEDERAL BANK REGULATORS SAID THEY WON'T IMPOSE LENDING QUOTAS OR ADOPT ANY RULES THAT SMACK OF CREDIT ALLOCATION THE REGULATORS ARE WORKING TO REVAMP RULES UNDER THE 1977 COMMUNITY REINVESTMENT ACT IN A WAY THAT INCREASES BANK INCENTIVES TO BOOST LENDING INVESTMENT AND BANKING SERVICES IN POOR NEIGHBORHOODS WHILE CUTTING PAPERWORK PRESIDENT CLINTON HAS ASKED REGULATORS TO COMPLETE THE TASK BY YEAR END THE CRA AS THE LAW IS CALLED REQUIRES FEDERALLY INSURED BANKS AND THRIFTS TO MEET THE CREDIT NEEDS OF THEIR COMMUNITIES BUT THE STANDARDS ARE VAGUE BANKERS COMPLAIN THAT CRA RULES IMPOSE HUGE PAPERWORK BURDENS ON THEM WHILE COMMUNITY GROUPS CHARGE THAT BANKERS HAVE CONCENTRATED MORE ON SURVEYING COMMUNITY CREDIT NEEDS THAN MAKING LOANS EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY TOLD THE HOUSE BANKING SUBCOMMITTEE THAT REGULATORS WANT TO BASE CRA EVALUATIONS MORE ON AN INSTITUTION'S RECORD IN MEETING LOCAL NEEDS FOR LOANS AND OTHER BANKING SERVICES AND LESS ON PROCESS AND DOCUMENTATION ONE PLAN UNDER CONSIDERATION WOULD REQUIRE BANKS TO DRAFT SPECIFIC COMMUNITY LENDING AND SERVICE TARGETS REGULATORS AND COMMUNITY GROUPS COULD THEN GAUGE THE ADEQUACY OF THE TARGETS AND MEASURE PERFORMANCE AGAINST THEM 9309200041 930920 WHO'S NEWS JACOBSON STORES INC JACOBSON STORES INC JACKSON MICH KATHLEEN MCCREE LEWIS A PARTNER IN THE DETROITBASED LAW FIRM OF DYKEMA GOSSETT AND JAMES L WOLOHAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WOLOHAN LUMBER CO HAVE BEEN NAMED TO THE BOARD OF THIS DEPARTMENT STORE CHAIN 9309200040 930920 BUSINESS BRIEF KONINKLIJKE NEDLLOYD GROEP NV DUTCH SHIPPING GROUP PLANS TO CUT 300 ADDITIONAL JOBS DUTCH TRANSPORT CONCERN KONINKLIJKE NEDLLOYD GROEP NV SAID IT WILL CUT MORE THAN 300 JOBS FROM ITS EUROPEAN ROADHAULAGE AND OCEANSHIPPING ACTIVITIES THE CUTS WILL BE MADE OVER THE NEXT SEVERAL MONTHS AND ADD TO PREVIOUSLY ANNOUNCED REDUCTIONS OF 2000 JOBS BY THE END OF 1994 A COMPANY SPOKESMAN DECLINED TO GIVE FINANCIAL DETAILS FOR THE NEW RESTRUCTURINGS UNDER THE PLAN NEDLLOYD ROAD CARGO AND NEDLLOYD UNITRANS WILL MERGE INTO NEDLLOYD ROAD CARGO NEDLLOYD'S VAN GEND & LOOS UNIT WHICH COLLECTS AND DELIVERS CONSIGNMENTS THROUGH A NETWORK OF TERMINALS WILL INTEGRATE THOSE ACTIVITIES WITH NEDLLOYD ROAD CARGO AT THE END OF 1992 NEDLLOYD EMPLOYED 17122 PEOPLE AT ITS EUROPEAN TRANSPORT AND DISTRIBUTION DIVISION 9309200039 930920 INTERNATIONAL IMF OFFICIAL SEES GROWTH FOR INDUSTRIAL ECONOMIES WASHINGTON AFTER SEVERAL YEARS OF SLUGGISH GROWTH THE ECONOMIES OF INDUSTRIALIZED NATIONS ARE POISED FOR A SUSTAINED UPTURN A SENIOR INTERNATIONAL MONETARY FUND OFFICIAL SAID BUT HE SAID BOTH JAPAN AND GERMANY SHOULD DO MORE TO SPUR THEIR ECONOMIES WHICH WOULD BOOST GROWTH FOR THEM AND THEIR TRADING PARTNERS AND WHILE THE IMF HASN'T COMPLETED ITS REVIEW OF JAPAN'S SIX TRILLION YEN 5744 BILLION STIMULUS PROGRAM HE SAID WE BELIEVE THAT MORE IS NEEDED BOTH IN TERMS OF LOWER INTEREST RATES AND GREATER FISCAL STIMULUS OUT OF TOKYO THE IMF ESTIMATES THAT INDUSTRIAL ECONOMIES WITH GROW A MEAGER 11 THIS YEAR AND 23 NEXT YEAR THE OFFICIAL SAID HE BELIEVES THE WORST IS OVER FOR INDUSTRIALIZED ECONOMIES AND THAT THEY SHOULD BE ENTERING A PERIOD OF STEADY GROWTH HE SAID THAT GROWTH WOULD BE BUILT ON THE LOWEST INFLATION RATES IN 30 YEARS AND THAT THE FOUNDATION FOR SUSTAINED REAL GROWTH IS STRONG HE URGED GOVERNMENTS TO GUARD AGAINST INFLATION AS THEIR ECONOMIES ACCELERATE THE OFFICIAL MADE HIS REMARKS AS THE IMF IS PREPARING FOR ITS ANNUAL MEETING WITH THE WORLD BANK ON OTHER TOPICS HE SAID POLITICAL AND ECONOMIC CONDITIONS AREN'T YET STABLE ENOUGH IN RUSSIA TO ALLOW RELEASE OF MORE MONEY NOW UNDER THE IMF'S SPECIAL AID PROGRAM HE DIDN'T SPECIFY WHEN THE IMF WOULD BE ABLE TO RELEASE MORE MONEY 9309200038 930920 LEISURE & ARTS FESTIVAL DRESS CALICO REQUIRED BY SUSAN G HAUSER OREGON CITY ORE IF I EVER SEE ANOTHER CALICO PRAIRIE DRESS I'LL GAG MERCIFULLY THE OREGON TRAIL SESQUICENTENNIAL CELEBRATION WHICH WENT ON LONGER THAN THE GESTATIONAL PERIOD OF A BUFFALO WAS PUT TO REST OVER THE LABOR DAY WEEKEND THE COVERED WAGONS CAME TO A HALT THE RIDERS DISMOUNTED AND THE HORSES AND MULES WERE PUT OUT TO PASTURE DOES THIS MEAN WE CAN STOP PLAYING DRESSUP NEARLY EVERYBODY IN OREGON HAS HAD OCCASION TO PLAY PIONEER AT LEAST ONCE THIS YEAR EVERY SCHOOL HAD ITS OREGON TRAIL PAGEANT AND THERE WAS AN OREGON TRAIL THEME FOR JUST ABOUT EVERY PICNIC PARADE OR CONTEST UNDER THE SUN EVERYWHERE YOU LOOKED FOLKS WERE HAWKING OREGON TRAIL MERCHANDISE INCLUDING AUTHENTIC TRAIL DUST AND OFFICIAL BUFFALO CHIPS RESTAURANTS FEATURED BUFFALO MEAT FOR SUNDAY BRUNCH AND FAMILIES IMBUED WITH THE PIONEER SPIRIT DINED ON JERKY WITH A SIDE OF ROOTS REDBLOODED OREGONIANS GOT VERY SENTIMENTAL ABOUT THE PIONEERS AND ONE OFTHEARD REMARK WAS NOW I KNOW HOW THE PIONEERS FELT THE LAST TIME I HEARD THIS STATEMENT WAS WHEN I WAS SEARCHING FOR MY CAR AFTER THE LABOR DAY CELEBRATION HERE ANOTHER WOMAN ALSO LOST IN THE SEA OF CARS IN THE HOT AFTERNOON SUN CALLED TO ME NOW I KNOW HOW THE PIONEERS FELT ME TOO I BET THE PIONEERS WERE SICK OF THE SIGHT OF CALICO PRAIRIE DRESSES FOR ONE THING MOSTLY I'M SICK OF LOSING MY DAUGHTER IN A CROWD BECAUSE IN HER CALICO PRAIRIE DRESS AND BONNET SHE LOOKED LIKE EVERY OTHER FEMALE CHILD IN OREGON I LOST HER IN THE PARKING LOT AND EARLIER I LOST HER AT THE PARADE MARKING THE END OF THE OFFICIAL OREGON TRAIL SESQUICENTENNIAL WAGON TRAIN MIND YOU ALL THOSE OTHER COMMEMORATIVE WAGON TRAINS CLUTTERING THE CONTINENT THIS YEAR WERE NOT OFFICIAL UNFORTUNATELY THIS ONE THE OFFICIAL ONE GOT TO GO THROUGH ONLY TWO OF THE SIX STATES TRAVERSED BY THE OREGON TRAIL THAT'S BECAUSE EVERYBODY BUT THE NICE FOLKS IN IDAHO SAID SOMETHING LIKE IT'S YOUR STUPID TRAIL THROW YOUR OWN PARTY SO AFTER 1000 MILES AND 73 DAYS ON THE ROAD COVERED WAGONS ONCE AGAIN REACHED THE PROMISED LAND NEVER MIND THAT ABERNETHY GREEN THE MEADOW THAT WAS THE WESTERN TERMINUS OF THE TRAIL 150 YEARS AGO IS NOW A LANDFILL I CAN'T REMEMBER IF I CHUCKLED THE FIRST TIME I HEARD THE LINE ABOUT THE PROMISED LANDFILL THE TIRED JOKE POPPED UP ENDLESSLY LIKE SO MANY CALICO SUNBONNETS ABOUT 5000 PEOPLE NEARLY ALL DRESSED IN PIONEER GARB JOINED THE WAGON TRAIN FOR THE FINAL THREE MILES OF ITS JOURNEY THE COVERED WAGONS PARKED IN A CIRCLE AT THEIR FINAL CAMPGROUND A SCHOOL SOCCER FIELD ROLLED OUT FIRST FOLLOWED BY THE HORSEBACK RIDERS WE WALKERS FOLLOWED IN THE HORSES' HOOFSTEPS CAREFUL TO DODGE WHAT THE PIONEERS PROBABLY CALLED HORSE CHIPS UNLIKE MANY OREGON LADIES I DIDN'T GO SO FAR AS TO SEW OR BUY MYSELF AN AUTHENTIC PIONEER COSTUME BUT OF COURSE OUR GOVERNOR BARBARA ROBERTS WAS DRESSED IN THE OBLIGATORY PIONEER DRESS FOR THE PARADE BECAUSE SHE HAS HAD TO GRAB AN OREGON TRAIL OUTFIT FROM HER CLOSET FOR SO MANY STATE OCCASIONS THIS YEAR I WONDERED IF SHE TOO WAS SICK OF THE SIGHT OF CALICO MY PIONEER OUTFIT WAS IMPROVISED I WORE A LONG DENIM SKIRT A CALICO SHIRT I HAD LONG INTENDED TO GIVE AWAY AND A PAIR OF WELLWORN COWBOY BOOTS THESE BOOTS WERE NOT MADE FOR WALKING THREE MILES ON A HOT DAY AND I GLANCED ENVIOUSLY AT THE NIKES PEEKING OUT FROM OTHER LADIES' PRAIRIE DRESSES THE FINAL DESTINATION OF THIS WAGON TRAIN WAS A PARK AT THE CONFLUENCE OF THE WILLAMETTE AND CLACKAMAS RIVERS AT THE PARK'S ENTRANCE THE WAGON TRAIN WAS GREETED BY NATIVE AMERICANS WHO WERE PROTESTING THE VERY THING THAT THEY WERE PROTESTING AT THE COLUMBUS CELEBRATION LAST YEAR THE FACT THAT TIME DOES NOT STAND STILL THE TRUTH OF THE MATTER IS IF THE AMERICANS HAD NOT COME WEST BY WAGON TRAIN THE BRITISH WOULD HAVE COME BY SEA THEN WE WOULD HAVE BEEN SINGING ALL THOSE TWANGY TRAIL DITTIES WITH AN ENGLISH ACCENT BY NOW I CAN DO WITHOUT THOSE SONGS WHICH ARE ALWAYS ACCOMPANIED BY FIDDLES WITH STRINGS THAT SOUND LIKE THEY'RE STILL ATTACHED TO THE CAT NOW WHEN ALL THIS HOOPLA STARTED I WAS JUST AS ENTHUSIASTIC ABOUT THE OREGON TRAIL SESQUICENTENNIAL AS THE NEXT PERSON I EVEN PESTERED MY 97YEAROLD GRANDMOTHER FOR HER MEMORIES OF ACQUAINTANCES WHO'D BEEN PIONEERS SHE TOLD ME THAT WHEN SHE WAS A CHILD A FELLOW WHO HAD LED A WAGON TRAIN CAME TO HER SCHOOL BUT SHE THOUGHT HE WAS AN OLD CODGER AND AS THE KIDS WOULD SAY TODAY BOOOOORING SO SHE SNOOZED THROUGH HIS SPEECH I CAN'T SAY I BLAME HER A LITTLE OREGON TRAIL HISTORY GOES A LONG WAY AND BY THE TIME GRANDMA LOUISE WAS A SCHOOLGIRL SHE WAS PROBABLY SICK OF THE SIGHT OF CALICO PRAIRIE DRESSES TOO WHAT'S GOT ME WORRIED IS THE FACT THAT THE MIGRATION OVER THE OREGON TRAIL WHICH BEGAN IN EARNEST IN 1843 CONTINUED FOR ANOTHER 25 YEARS OR SO OUR SUNBONNETS ARE GOING TO LOOK PRETTY DROOPY COME THE YEAR 2018 SO I HOPE THERE AREN'T ANY PLANS TO KEEP PLAYING PIONEER FOR THE NEXT QUARTER CENTURY BESIDES 2043 WILL COME SOON ENOUGH THAT'S WHEN WE'LL CELEBRATE THE BICENTENNIAL OF THE OREGON TRAIL NOW IT'S TIME TO PACK AWAY MY DAUGHTER'S CALICO PRAIRIE DRESS AND SUNBONNET I'LL DO THAT FOR TWO REASONS 1 TO SAVE THEM FOR MY GREATGRANDDAUGHTER'S SCHOOL PAGEANT AND 2 SO I DON'T HAVE TO LOOK AT THEM ANYMORE MS HAUSER IS A WRITER IN PORTLAND ORE 9309200037 930920 WHO'S NEWS SCOTIAMCLEOD'S CHAIRMAN TAYLOR IS LEAVING FIRM BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO AUSTIN TAYLOR CHAIRMAN OF ONE OF CANADA'S LARGEST AND MOST POWERFUL SECURITIES DEALERS SAID HE PLANS TO LEAVE THE FIRM HE HAS HEADED FOR THE PAST 15 YEARS AT THE END OF THE MONTH MR TAYLOR 63 YEARS OLD WON'T DISCUSS THE REASONS FOR HIS DEPARTURE FROM SCOTIAMCLEOD INC OR HIS PLANS HE SAID ONLY THAT HE EXPECTS TO BE ENGAGED IN BUSINESS AND DECLINED FURTHER COMMENT BANK OF NOVA SCOTIA WHICH ACQUIRED MCLEOD YOUNG WEIR & CO IN 1988 AND TRANSFORMED IT INTO SCOTIAMCLEOD DECLINED ANY COMMENT ON MR TAYLOR'S EXODUS NEITHER BANK OFFICIALS NOR MR TAYLOR WOULD SAY WHETHER HE RESIGNED OR WAS ASKED TO LEAVE NO SUCCESSOR HAS BEEN NAMED WE'RE SEEING THE PASSING OF AN ERA HERE SAID ALAIN TUCHMAIER FINANCIAL SERVICES ANALYST AT MCLEAN MCCARTHY LTD ANOTHER TORONTO INVESTMENT DEALER MR TAYLOR HELPED BUILD SCOTIA INTO A FORCE IN CANADA'S INVESTMENT COMMUNITY JOINING SCOTIAMCLEOD THEN KNOWN AS MCLEOD YOUNG WEIR IN 1964 MR TAYLOR BECAME PRESIDENT IN 1978 AND TOOK OVER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER A FEW YEARS LATER HE HELPED THE FIRM DEVELOP ITS EXPERTISE IN BOND AND FIXEDINCOME MARKETS AN AREA THAT IT STILL DOMINATES TODAY WHILE EQUITY MONEY MANAGERS SEEK TO OUTPERFORM THE TORONTO STOCK EXCHANGE'S COMPOSITE INDEX OF 300 STOCKS BOND FUND MANAGERS AIM TO OUTDO THE SCOTIA BOND INDEXES MR TAYLOR ALSO BECAME ONE OF THE MOST COLORFUL FIGURES ON BAY STREET CANADA'S VERSION OF WALL STREET VISITORS TO HIS OFFICE WERE INVITED TO PARTAKE OF CHOCOLATECHIP COOKIES KEPT IN A JAR ON HIS DESK ALONG WITH AFTERNOON TEA HIS EXPANDING GIRTH AND CHAINSMOKING FUELED RUMORS THAT HE MIGHT HAVE TO STEP DOWN FOR HEALTH REASONS BUT SOURCES CLOSE TO THE SECURITIES DEALER SAY HE HAS REMAINED AN ACTIVE DECISIONMAKER PERHAPS THE CLIMAX OF MR TAYLOR'S CAREER CAME WHEN HE HELPED NEGOTIATE THE SALE OF MCLEOD YOUNG WEIR TO BANK OF NOVA SCOTIA IN 1988 FOR 487 MILLION CANADIAN DOLLARS US3708 MILLION FOLLOWING THE ACQUISITION THE RENAMED SCOTIAMCLEOD RETAINED MUCH OF ITS AUTONOMY UNDER MR TAYLOR'S LEADERSHIP NOW HOWEVER BANK AND BROKERAGE OFFICIALS ARE SEEKING WAYS TO INTEGRATE MANY OF THEIR TRADING AND BACK OFFICE OPERATIONS IN RESPONSE TO THE GROWING COMPLEXITY OF THE TRADING ENVIRONMENT INCREASED COMPETITION AND A NEED TO SHARE INFORMATION SOME ANALYSTS SAY THESE STEPS MAY HAVE MADE MR TAYLOR DECIDE TO STEP DOWN TORONTOBASED SCOTIAMCLEOD IS CANADA'S THIRDLARGEST SECURITIES DEALER 9309200036 930920 THE OUTLOOK FAMILIES' INSURANCE TAB FUELS HEALTH DEBATE BY DAVID WESSEL WASHINGTON IN THE COMING DEBATE OVER RESTRUCTURING THE US HEALTHCARE SYSTEM A SMALL BUT THOUGHTFUL BAND WILL ARGUE THAT PRESIDENT CLINTON'S FARREACHING PLAN ISN'T RADICAL ENOUGH THAT MAY SOUND PREPOSTEROUS BUT FOR ALL THE CHANGES MR CLINTON PROPOSES HE WOULD PRESERVE ONE OF THE MOST PECULIAR FEATURES OF THE AMERICAN SYSTEM THAT HEALTH INSURANCE COMES WITH YOUR JOB IF MAKING SURE THAT EVERYONE HAS HEALTH INSURANCE IS THE GOVERNMENT'S RESPONSIBILITY LIKE PROVIDING ROADS OR PARKS OR SCHOOLS THEN IT IS SIMPLY BIZARRE TO LINK THE RIGHT TO HEALTHCARE COVERAGE TO EMPLOYMENT AND FILL IN GAPS FOR THOSE WHO WORK FOR SMALL BUSINESSES OR ARE UNEMPLOYED OR RETIRED ARGUES MICHAEL GRAETZ A YALE LAW PROFESSOR WHO PONDERED THE HEALTHCARE MORASS WHILE WORKING AT THE BUSH TREASURY MR CLINTON NEVER SERIOUSLY CONSIDERED THE TWO OTHER WAYS TO PROVIDE INSURANCE TO THOSE WITHOUT IT THE GOVERNMENT COULD FURNISH INSURANCE TO EVERYONE MUCH AS CANADA DOES AN OPTION THAT A SUBSTANTIAL NUMBER OF HOUSE DEMOCRATS FAVOR OR IT COULD REQUIRE THAT EVERYONE BUY INSURANCE OFFERING VOUCHERS OR TAX CREDITS TO HELP LOWINCOME FAMILIES A FEATURE OF A PROPOSAL UNVEILED BY A GROUP OF SENATE REPUBLICANS LAST WEEK BUT ONE THAT HASN'T RECEIVED MUCH PUBLIC ATTENTION SO FAR IT IS AN ACCIDENT OF HISTORY THAT MOST AMERICANS GET INSURANCE THROUGH THEIR EMPLOYERS DURING WORLD WAR II EMPLOYERS AND UNIONS TURNED TO HEALTH INSURANCE AS A WAY TO INCREASE COMPENSATION WITHOUT RUNNING AFOUL OF WAGE AND PRICE CONTROLS AS INFLATION PUSHED TYPICAL WORKERS INTO HIGHER TAX BRACKETS AND THE PAYROLLTAX RATE ROSE THE TAX CODE FURTHER FAVORED FRINGE BENEFITS CASH WAGES ARE TAXED EMPLOYERPROVIDED HEALTH INSURANCE ISN'T THE ONLY REASON FOR LINKING HEALTH COVERAGE TO EMPLOYMENT IS THAT EMPLOYMENT NOW PROVIDES SUCH COVERAGE AND NO ONE IS WILLING TO CHALLENGE THAT STATUS QUO MR GRAETZ ARGUES IN A FORTHCOMING ARTICLE IN THE JOURNAL DOMESTIC AFFAIRS THERE IS SOMETHING TO BE SAID FOR CHANGING WHAT NEEDS CHANGING AND LEAVING WHAT DOESN'T ALONE MOREOVER THERE IS AMPLE REASON FOR MR CLINTON TO BELIEVE CONGRESS WILL REJECT A HEALTHCARE PLAN THAT RELIES TOO HEAVILY ON EXPLICIT TAXES REQUIRING EMPLOYERS TO PAY FOR INSURANCE IS A SUBSTITUTE YET SOME WHO ARE AS EAGER TO REFORM THE HEALTH SYSTEM AS MR CLINTON WONDER IF HE ISN'T MISSING A ONCEINAGENERATION CHANCE TO CREATE A SYSTEM THAT MAKES MORE ECONOMIC SENSE MUCH OF THE COMPLEXITY IN THE CURRENT SYSTEM LIKE THE ROOTS OF A TREE IS UNDERGROUND AND INVISIBLE WHEN YOU REFORM THE SYSTEM YOU HAVE TO PULL THE TREE UP AND REDESIGN ITS ROOTS WHEN IT IS REDESIGNED IT BECOMES THE RESPONSIBILITY OF THE DESIGNERS SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE ONE PRICE OF STICKING WITH EMPLOYERLINKED INSURANCE IS COMPLEXITY REQUIRING THAT EMPLOYERS PAY AT LEAST 80 OF THE PREMIUMS FOR WORKERS SOUNDS SIMPLE BUT MR CLINTON PROPOSES A NEW MECHANISM TO SUBSIDIZE SOME BUSINESSES A SEPARATE ONE TO HELP LOWINCOME FAMILIES PAY THEIR SHARE AND POSSIBLY ANOTHER TO RECAPTURE SAVINGS REALIZED BY BIG EMPLOYERS WHO CHOOSE TO STAY OUT OF THE NEW HEALTH ALLIANCES THAT ARE TO BE MIDDLEMEN BETWEEN EMPLOYERS AND INSURERS FORCING EMPLOYERS TO PROVIDE INSURANCE MAY ALSO BE AN IMPEDIMENT TO HIRING AT LEAST IN THE SHORTRUN WHICH IS BAD NEWS DURING AN ECONOMIC RECOVERY THAT IS FALLING SHORT IN THE AREA OF JOB CREATION THOUSANDS OF EMPLOYERS WHO AREN'T CURRENTLY PAYING FOR THEIR WORKERS' HEALTH INSURANCE WILL SEE THEIR TOTAL LABOR COSTS RISE UNDER THE CLINTON PLAN UNLESS THEY CAN FIND A WAY TO CUT WAGES AS A RESULT THEY MAY BECOME EVEN MORE RELUCTANT TO BRING ON NEW EMPLOYEES WHAT'S MORE FOR ALL THEIR EFFORTS THE ARCHITECTS OF THE CLINTON PLAN ENDED UP WITH A SCHEME IN WHICH SOME EMPLOYERS WILL PAY MORE THAN OTHERS FOR INSURANCE DEPENDING ON THE CHARACTERISTICS OF THEIR WORK FORCES MAKING THE BIG SWITCH TO A SYSTEM WHERE INDIVIDUALS MUST BUY THEIR OWN INSURANCE PERHAPS THROUGH THE SORT OF ALLIANCES THAT MR CLINTON PROPOSES WOULD ELIMINATE SOME OF THESE PROBLEMS BUT IT WOULD BRING ITS OWN DIFFICULTIES IRA MAGAZINER ARCHITECT OF THE CLINTON PLAN SAYS THE BUREAUCRACY THAT SENATE REPUBLICANS WOULD CREATE TO SUBSIDIZE THE POOR WOULD BE BEYOND THEIR WILDEST DREAMS BUT ADVOCATES OF THE INDIVIDUAL MANDATE WHO RANGE FROM SENATE GOP LEADER BOB DOLE TO MIT ECONOMIST PETER DIAMOND SEE SEVERAL ADVANTAGES IN THEIR WORLD INSURANCE IS AS PORTABLE AS A SOCIAL SECURITY PENSION A PERSON COULD GO FROM A SMALL COMPANY THAT IS IN A HEALTH ALLIANCE TO A BIG ONE THAT ISN'T AND LATER QUIT WORK ALTOGETHER AND GO BACK TO SCHOOL WITHOUT SWITCHING INURANCE PLANS EMPLOYERS COULD GET OUT OF THE HEALTHINSURANCE GAME AND CONCENTRATE ON THEIR BUSINESSES ARGUMENTS OVER WHO IS AND WHO ISN'T AN EMPLOYEE WOULD VANISH SUBSIDIES WOULD GO ONLY TO LOWINCOME FAMILIES ELIMINATING THE NEED TO AID ANY BUSINESS AND THE LOCUS OF DECISIONMAKING WOULDN'T BE THE GOVERNMENT OR THE EMPLOYER BUT THE FAMILY THE DECENTRALIZATION THAT IS SUPPOSED TO MAKE MARKETS WORK BEST WHEN MR CLINTON MAKES HIS HEALTHCARE SPEECH WEDNESDAY HE OPENS WHAT COULD BE THE MOST SIGNIFICANT DEBATE OVER DOMESTIC POLICY IN DECADES THE POLITICAL ODDS DON'T FAVOR THOSE WHO WOULD IMPOSE THE INSURANCE MANDATE ON FAMILIES RATHER THAN EMPLOYERS BUT IT GIVES THEM A FORUM THEY HAVE LACKED UNTIL NOW 9309200035 930920 BUSINESS BRIEFS GREYHOUND LINES INC WILL OFFER A 14DAY ADVANCEPURCHASE TICKET AT A 50 DISCOUNT THIS FALL HOPING TO STIMULATE ADDITIONAL TRAFFIC IN WHAT IS TRADITIONALLY A SLOWER TRAVEL PERIOD FOURTH FINANCIAL CORP COMPLETED ITS ACQUISITION OF COMMERCIAL LANDMARK INC FOR STOCK VALUED AT 572 MILLION PNC BANK CORP COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF MASSACHUSETTS CO OF BOSTON FROM TRAVELERS CORP FOR 53 MILLION AVNET INC SIGNED A LETTER OF INTENT WITH INSTRUMENTARIUM CORP OF HELSINKI FINLAND TO ACQUIRE ITS FINDIP AND FIELD SUBSIDIARIES WHICH ARE ELECTRONIC COMPONENTS DISTRIBUTORS FLEMING COS PLANS TO SPEND 15 MILLION TO 20 MILLION TO EXPAND ITS KANSAS CITY KAN FOOD DISTRIBUTION CENTER 9309200034 930920 MARKETING & MEDIA NOTED NEWSPAPERS THE NEW YORK TIMES WILL EXPAND ITS SUNDAY MAGAZINE WITH NEW FEATURES AND COLUMNS ADDING MORE COLOR AS PART OF A COMPLETE REDESIGN BEGINNING OCT 31 JACK ROSENTHAL EDITOR OF THE NEW YORK TIMES CO MAGAZINE SAID THE SPACE FOR ARTICLES IT CAN RUN WITHOUT CONTINUING TO ANOTHER PART OF THE PUBLICATION WILL DOUBLE THE NEW ITEMS WILL INCLUDE NARRATIVE PHOTO STORIES AND TRAVEL PIECES 9309200033 930920 POLITICS & POLICY CLINTON FOREIGNAID PLAN CUTS NUMBER OF RECIPIENTS WASHINGTON THE CLINTON ADMINISTRATION IS SET TO PRESENT CONGRESS WITH A US FOREIGN AID PLAN THAT WOULD REDUCE THE NUMBER OF NATIONS RECEIVING ASSISTANCE BUT NOT CUT OUT ANY CURRENT MAJOR AID RECIPIENTS PRESIDENT CLINTON HASN'T YET SIGNED OFF ON THE PROPOSAL ACCORDING TO A US OFFICIAL BUT THE ADMINISTRATION PLAN WHICH COULD GO TO CAPITOL HILL THIS WEEK WILL BE A MUCH SCALEDDOWN VERSION OF THE RECOMMENDATIONS OF AN INTERAGENCY REVIEW THAT CALLED FOR AMONG OTHER MEASURES SHIFTING DECISIONMAKING FROM CONGRESS TO THE WHITE HOUSE THE RECOMMENDATIONS WERE REPORTED OVER THE WEEKEND IN THE WASHINGTON POST THE PROPOSAL WON'T TOUCH AID TO ISRAEL AND EGYPT WHICH TOGETHER TOTALS ABOUT 5 BILLION ANNUALLY THE LION'S SHARE OF US ASSISTANCE TO FOREIGN NATIONS INDEED A US OFFICIAL SAID AID TO THE MIDEAST MAY BE INCREASED TO HELP SUPPORT THE PEACE PROCESS IN A SPEECH TODAY SECRETARY OF STATE WARREN CHRISTOPHER IS EXPECTED TO CALL FOR AN INTERNATIONAL DONORS' CONFERENCE TO DISCUSS AND COORDINATE ASSISTANCE TO THE PALESTINIANS AFTER THE MIDDLE EAST IS PROVIDED FOR THE REMAINING MONEY WOULD BE USED TO ADDRESS FIVE BROAD CONCERNS THE GLOBAL ENVIRONMENT POPULATION GROWTH ECONOMIC DEVELOPMENT DEMOCRACY BUILDING AND HUMANITARIAN AID A US OFFICIAL SAID MR CLINTON'S PLAN WOULD SIGNIFICANTLY REDUCE THE NUMBER OF COUNTRIES GETTING AID BUT THAT WON'T BE DONE WITHOUT CLOSE CONSULTATIONS WITH CONGRESS 9309200032 930920 ARTURO FERRUZZI IS TOLD HE'S UNDER INVESTIGATION SPECIAL TO THE WALL STREET JOURNAL MILAN ARTURO FERRUZZI FORMER CHAIRMAN OF ITALY'S FINANCIALLY STRAPPED FERRUZZI FINANZIARIA SPA WAS TOLD HE WAS UNDER INVESTIGATION FOR ALLEGED FALSE ACCOUNTING THE ITALIAN NEWS AGENCY ANSA SAID MR FERRUZZI WAS REMOVED AS CHAIRMAN THIS YEAR AFTER CREDITOR BANKS TOOK OVER OPERATIONAL CONTROL TO COPE WITH THE GROUP'S MASSIVE DEBTS WHICH TOTALED MORE THAN 28 TRILLION LIRE 1805 BILLION AT THE END OF MAY LAST MONTH MONTEDISON SPA FERRUZZI'S AGROINDUSTRIAL AND CHEMICAL SUBSIDIARY WON A SEQUESTRATION ORDER FOR 500 BILLION LIRE OF PROPERTY AND GOODS BELONGING TO ARTURO FERRUZZI AND SEVERAL OTHER FORMER FERRUZZI EXECUTIVES IN CONNECTION WITH ALLEGED FINANCIAL IRREGULARITIES AT THE COMPANIES THE FERRUZZI GROUP'S FINANCES ARE ALSO TANGLED IN THE INVESTIGATION INTO ENIMONT SPA A JOINT VENTURE WITH STATE ENERGY HOLDING ENTE NAZIONALE IDROCARBURI SPA THAT BROKE UP TWO YEARS AGO SEVERAL FORMER FERRUZZI AND MONTEDISON EXECUTIVES HAVE BEEN QUESTIONED ABOUT ILLEGAL PAYMENTS ALLEGEDLY MADE TO POLITICAL PARTIES 9309200030 930920 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN HE ZHENLIANG HEAD OF CHINA'S NATIONAL OLYMPIC COMMITTEE RULED OUT A BOYCOTT OF THE 1996 SUMMER GAMES IN ATLANTA IF CHINA ISN'T CHOSEN TO HOST THE OLYMPICS IN 2000 BUT HE REFUSED TO SAY THAT THE COUNTRY'S ATHLETES WOULD GO TO ATLANTA MR HE DISMISSED AS UNFORTUNATE RUMORS REMARKS BY THE CHIEF OF CHINA'S OLYMPIC BID THAT A BOYCOTT WAS POSSIBLE BECAUSE OF POLITICAL INTERFERENCE BY THE US HOUSE OF REPRESENTATIVES WHICH PASSED A RESOLUTION IN JULY OPPOSING CHINA'S BID ON HUMAN RIGHTS GROUNDS BUT MR HE POINTEDLY LEFT OPEN THE POSSIBILITY OF NONPARTICIPATION OLYMPIC OBSERVERS RECALLED THAT THE COMMUNIST EAST BLOC COUNTRIES NEVER ADMITTED TO A BOYCOTT OF THE 1984 LOS ANGELES GAMES WHICH THEY DIDN'T ATTEND THEY SIMPLY SAID THEY WOULDN'T SHOW UP BECAUSE THEY WERE UNSATISFIED WITH SECURITY ARRANGEMENTS THE INTERNATIONAL OLYMPIC COMMITTEE WILL VOTE THURSDAY TO SELECT THE HOST CITY FOR THE 2000 GAMES FROM AMONG FIVE CANDIDATES BEIJING SYDNEY BERLIN ISTANBUL AND MANCHESTER ENGLAND A REMOTECONTROL BOMB EXPLODED AT THE MAIN BRANCH OF RUSSIA'S CENTRAL BANK EARLY FRIDAY DAMAGING A WALL AND SHATTERING WINDOWS OF NEARBY BUILDINGS THERE WERE NO INJURIES THE BOMB HIDDEN OUTSIDE THE BUILDING UNDER A GROUND FLOOR WINDOW OF THE OPERATIONS ROOM CONTAINED THE EQUIVALENT OF ABOUT A POUND OF TNT THE CENTRAL BANK SAID IT RECEIVED NO THREATS BEFORE OR AFTER THE INCIDENT AND NO ONE HAS CLAIMED RESPONSIBILITY FOR THE BLAST SUPPORT FOR BRITAIN'S RULING CONSERVATIVE PARTY HAS ERODED FURTHER AND THE OPPOSITON LABOR PARTY IS GAINING POPULARITY A POLL FOUND THE POLL CONDUCTED ABOUT A WEEK AGO FOR THE GUARDIAN NEWSPAPER SHOWS THAT ONLY 27 WOULD VOTE FOR THE CONSERVATIVES IF THERE WERE A GENERAL ELECTION NOW THE LABOR PARTY WOULD ATTRACT 45 OF THE VOTE AND THE LIBERAL DEMOCRATS 24 THE POLL SURVEYED 1403 ADULTS A SIMILAR POLL A MONTH AGO PUT SUPPORT FOR THE CONSERVATIVES AT 28 LABOR AT 40 AND THE LIBERAL DEMOCRATS AT 28 IN LAST YEAR'S GENERAL ELECTION THE CONSERVATIVES RETAINED POWER WITH 43 OF THE VOTE SCORES OF FRENCH FARMERS DEMONSTRATED FRIDAY AT EURO DISNEYLAND OPENING A NEW FRONT IN THEIR CAMPAIGN AGAINST A USEUROPEAN FARM TRADE ACCORD THAT WOULD CUT FARM SUBSIDIES PROTEST ORGANIZERS SAID ABOUT 100 FARMERS ENTERED THE THEME PARK 18 MILES FROM PARIS BUT POLICE PREVENTED AN ESTIMATED 200 OTHERS FROM JOINING THEM EURO DISNEY IN ITS DEFENSE ISSUED A COMMUNIQUE STATING THAT 90 OF THE FOOD SOLD AT THE PARK COMES FROM FRANCE AGRICULTURE MINISTER JEAN PUECH CANCELED A PLANNED VISIT TO THE PARK THURSDAY BUT IT WAS UNCLEAR WHETHER THE DECISION WAS LINKED TO THE FARMERS' PROTEST CHEAP WINE TAINTED WITH METHANOL KILLED 24 ARGENTINIANS THIS MONTH THE LATEST INCIDENT IN A RECENT OUTBREAK OF FOOD CONTAMINATION AT LEAST 74 PEOPLE HAVE DIED IN THE PAST 13 MONTHS FROM CONTAMINATED WINE AND MEDICINE THE LATEST VICTIMS DIED AFTER DRINKING WINE THAT WAS MIXED WITH METHANOL TO INCREASE THE VOLUME AND ALCOHOL CONTENT SIX MEN OWNERS AND EMPLOYEES OF A BUENOS AIRES WINE WHOLESALER HAVE BEEN CHARGED WITH POISONING AND MANSLAUGHTER IN THE CASE THE BUENOS AIRES CITY GOVERNMENT SAID 20 OF FOOD IN THE CAPITAL WAS UNFIT TO EAT LED BY DECLINES IN GERMANY THE EUROPEAN COMMUNITY'S ADJUSTED INDUSTRIAL PRODUCTION FELL 38 IN JUNE AND 42 IN MAY FROM A YEAR EARLIER INDUSTRIAL PRODUCTION IN GERMANY DECLINED 94 IN JUNE AND 8 IN MAY IN THE SECOND QUARTER GERMANY'S OUTPUT WAS DOWN 09 FROM THE PREVIOUS QUARTER WHILE DENMARK HAD A 3 DROP AND PORTUGAL'S OUTPUT FELL 22 CUBAN PRESIDENT FIDEL CASTRO BLAMED THE US FOR RECENT ASYLUM REQUESTS BY CUBANS AT LATIN AMERICAN EMBASSIES IN HAVANA CLAIMING THAT THE US ENCOURAGES ILLEGAL ATTEMPTS TO LEAVE THE COMMUNISTRULED ISLAND LAST WEEK 11 CUBANS SEEKING TO TRAVEL TO THE US SOUGHT ASYLUM AT THE MEXICAN EMBASSY IN CUBA AND WERE ALLOWED TO FLY TO MEXICO OTHER ASYLUM BIDS BY CUBANS AT THE ARGENTINE BRAZILIAN AND PERUVIAN EMBASSIES WEREN'T SUCCESSFUL MR CASTRO SAID THE US WAS ULTIMATELY RESPONSIBLE FOR THESE ATTEMPTS BECAUSE IT WASN'T GRANTING VISAS TO MANY CUBANS WHO WISHED TO TRAVEL THERE AND IT CLAIMED THAT THE US SOUGHT TO EXTRACT A POLITICAL ADVANTAGE FROM THE SPECTACLE OF PEOPLE RUNNING AWAY IN RAFTS OR BOATS BUT MAINTAINING A TREND OF CONCILIATORY REFERENCES TO PRESIDENT CLINTON MR CASTRO POINTEDLY EXCLUDED HIM FROM HIS CHARGES SAYING THAT MR CLINTON WAS CLEARLY TOO PREOCCUPIED WITH PRESSING DOMESTIC ISSUES TO SPEND MUCH TIME THINKING ABOUT CUBA LAST WEEK MR CLINTON RENEWED HIS POWERS TO ENFORCE A LONGSTANDING ECONOMIC EMBARGO AGAINST THE ISLAND A JAPANESE LAWMAKER ADMITTED PLAGIARIZING ACCOUNTS OF AN INTERVIEW BY HIS ASSISTANT WITH A TOP KHMER ROUGE OFFICIAL AND PASSING THEM OFF IN A 1992 ARTICLE AS THE PRODUCT OF HIS OWN EXCLUSIVE INTERVIEW IN ONE OF TAIWAN'S BIGGEST HAULS OF ENDANGERED WILDLIFE PARTS TAIPEI AIRPORT POLICE ARRESTED A BHUTANESE PRINCESS ON CHARGES OF SMUGGLING 22 RHINOCEROS HORNS TO THE ISLAND IN HER LUGGAGE 9309200029 930920 ECONOMY CONSUMER SENTIMENT INDEX FELL IN EARLY SEPTEMBER WASHINGTON AMERICANS REMAIN IN A PRETTY DISMAL STATE OF MIND THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX DROPPED TO 643 IN EARLY SEPTEMBER FROM 658 IN AUGUST ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT HOWEVER THE WAY PEOPLE SEE EXISTING CONDITIONS BRIGHTENED SOMEWHAT THE UNIVERSITY'S MEASUREMENT OF CURRENT CONDITIONS ROSE TO 979 FROM 951 IN AUGUST THE INDEX IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS THE MICHIGAN CONSUMER CONFIDENCE INDEX ALONG WITH A WIDELY FOLLOWED INDEX OF CONSUMER CONFIDENCE PUT OUT BY THE CONFERENCE BOARD ROSE SHARPLY AROUND THE TIME OF PRESIDENT CLINTON'S ELECTION BUT HAS FALLEN STEADILY SINCE THE GOOD NEWS THOUGH IS THAT THERE DOESN'T SEEM TO BE A STRONG LINK BETWEEN MOOD AND BUYING PATTERNS PEOPLE HAVE BEEN BUYING NEW CARS AND ADDING TO THEIR DEBT LOADS EVEN AS POLLS SUGGEST THAT THEY ARE TOO UNCERTAIN ABOUT THE ECONOMY AND JOB PROSPECTS TO DO SO 9309200028 930920 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CONTINENTAL AIRLINES INC AN OFFERING OF ABOUT EIGHT MILLION NEW CLASS B COMMON SHARES VIA MERRILL LYNCH & CO AND CS FIRST BOSTON DEVELOPERS DIVERSIFIED REALTY CORP AN OFFERING OF 35 MILLION COMMON SHARES VIA DEAN WITTER REYNOLDS INC ALEX BROWN & SONS INC AG EDWARDS & SONS INC AND MCDONALD & CO SECURITIES INC INDORAYON AN OFFERING OF 75 MILLION OF SENIOR NOTES VIA CREDIT SUISSE FIRST BOSTON 9309200027 930920 SMALL STOCK FOCUS GENERIC DRUG FIRMS' SHARES LOOK POTENT TO MANY BUT MAY PRODUCE A HEADACHE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL GENERIC DRUG STOCKS ARE WALL STREET'S LATEST PRESCRIPTION FOR BEATING THE CLINTON ADMINISTRATION'S HEALTHCARE PLAN DON'T BET ON IT IN THE MIDST OF THE INVESTMENT FOG SURROUNDING HEALTHCARE STOCKS SMALL GENERIC DRUG GROWTH STOCKS SEEM TO BE THE ONLY POINTS OF LIGHT WITHIN THE PAST THREE MONTHS ZENITH LABORATORIES HAS SURGED 68 PUREPAC PHARMACEUTICALS 95 MARSAM PHARMACEUTICALS 48 AND ROBERTS PHARMACEUTICALS 29 BULLS ON THE STOCKS SAY THERE ARE LOADS OF DRUGS COMING OFF PATENT IN 1994 AND 1995 GIVING GENERIC DRUG MAKERS AMPLE ROOM TO OFFER NEW PRODUCTS AT THE SAME TIME THE ADMINISTRATION'S HEALTHCARE PLAN WILL REQUIRE HOSPITALS AND HEALTHMANAGEMENT ORGANIZATIONS TO USE CHEAPER PRODUCTS PROVIDING HUGE DEMAND FOR GENERIC PRODUCTS THESE STOCKS ARE BALLISTIC RAVES DAVID SAKS A RESEARCH ANALYST WITH GRUNTAL & CO THESE COMPANIES ARE GOING TO HAVE A TIDAL WAVE OF BUSINESS OPPORTUNITIES AND WILL BE AN EARNINGSMOMENTUM STORY FOR MANY YEARS LAST WEEK MR SAKS PUBLISHED A REPORT AS A GUIDE TO INVESTING IN THE GROUP AND INITIATED COVERAGE OF 13 GENERIC DRUG COMPANIES THIS IS A LONGTERM SECULAR MOVE I HAVE BEEN FOLLOWING AND IT HAS JUST BECOME POLITICALLY FASHIONABLE HE SAYS THERE IS A SHORTAGE OF STOCK TO MEET INVESTORS' DEMANDS AND THE STOCKS ARE JUST GOING TO KEEP GOING UP DAVID KLASKIN PRESIDENT OF OAK RIDGE INVESTMENTS IN CHICAGO SAYS GENERIC DRUG STOCKS SHOULD DO WELL BECAUSE THEY WILL HELP REDUCE COSTS HE LIKES THE EARNINGS GROWTH OF ROBERTS PHARMACEUTICAL AND COPLEY PHARMACEUTICAL EATONTOWN NJBASED ROBERTS REPORTED SECONDQUARTER EARNINGS OF SIX CENTS A SHARE COMPARED WITH A LOSS OF 25 CENTS A YEAR EARLIER ROBERTS EDGED UP 1/8 TO 29 3/4 FRIDAY CANTON MASSBASED COPLEY WHICH WENT PUBLIC ABOUT A YEAR AGO AT 19 ROSE 1 TO 43 1/2 FRIDAY THE COMPANY EARNED 26 CENTS A SHARE FOR ITS SECOND QUARTER ENDED JULY 31 THAT'S A 63 LEAP FROM THE PREVIOUS YEAR'S 16 CENTS A SHARE BEFORE A 12CENT GAIN FROM A LEGAL AWARD THERE IS ALSO MUCH SPECULATION ABOUT THE SMALL GENERIC DRUG COMPANIES AS POTENTIAL TAKEOVER CANDIDATES BY THE BIG ETHICAL DRUG COMPANIES BULLS ARGUE THAT BUYING THESE SMALL COMPANIES WILL BE MORE EFFICIENT FOR THE BIG FIRMS THAN BUILDING UP GENERIC DRUG OPERATIONS FROM SCRATCH SHARES OF NORTHVALE NJ ZENITH LABS HAVE SOARED NEARLY 30 IN THE PAST THREE WEEKS ON TAKEOVER RUMORS TRADERS SAY THE STOCK ROSE 7/8 TO 75 5/8 FRIDAY BUT SKEPTICAL ANALYSTS AND MONEY MANAGERS WARN THAT SMALL GENERIC DRUG STOCKS COULD WIND UP GIVING INVESTORS A BIG HEADACHE THEY CONTEND THAT THE GIANT DRUG COMPANIES WILL SOON USE THEIR FINANCIAL MUSCLE TO PUSH THEIR WAY INTO THE GENERIC BUSINESS I DO THINK THE GENERIC MARKET SHARE IS GOING TO CONTINUE TO INCREASE BUT THE BUSINESS IS GOING TO GET MORE AND MORE COMPETITIVE CAUTIONS ANNE ANDERSON PRESIDENT OF ATLANTIS INVESTMENT A GROWTHSTOCK RESEARCH CONCERN SOME BIG COMPANIES ARE GOING TO PUSH HARD AND CAPTURE A LARGE PART OF THE MARKET A LOT OF THE LITTLE ONES ARE GOING TO LOSE SHE WARNS THAT SPECULATORS BETTING ON A SMALL COMPANY TO BE TAKEN OVER BY ONE OF THE LARGE PHARMACEUTICAL FIRMS ARE TAKING A BIG RISK THERE'RE ALWAYS RUMORS ABOUT POTENTIAL TAKEOVER CANDIDATES BUT I WOULDN'T TRY TO GUESS WHICH ONES SHE SAYS AS THE STOCKS GET HOT INVESTORS ARE FORGETTING THAT THE COMPETITION IS ALSO HEATING UP SAYS RAY HIRSCH A PORTFOLIO MANAGER AT IDS FINANCIAL SERVICES IN MINNEAPOLIS AT THE BEGINNING OF THIS MONTH PUREPAC REPORTED THAT ITS SECONDQUARTER EARNINGS WERE A MEASLY 11 CENTS A SHARE DOWN FROM 33 CENTS THE YEAR BEFORE THE COMPANY BLAMED THE DECLINE IN GROSS PROFIT FOR THE YEAR TO PRICE REDUCTIONS OF ITS NIFEDIPINE PRODUCT PRESCRIBED FOR HYPERTENSION THE DROP WAS A RESULT OF INCREASED COMPETITION BUT THE PROFIT DECLINE ISN'T BOTHERING INVESTORS WHO HAVE BID THE STOCK UP 42 IN THE PAST TWO WEEKS TO FRIDAY'S CLOSE OF 17 3/4 THE ELIZABETH NJ COMPANY SAID IT HAS RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION FOR CARBIDOPA AND LEVODOPA TABLETS WHICH ARE THE BIOEQUIVALENT TO SINEMET A DRUG FOR PARKINSON'S DISEASE D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST WHO FOLLOWS SEVERAL OF THE LARGE DRUG STOCKS SAYS THAT IN THE PAST IT HAS BEEN EASY FOR GENERIC DRUG COMPANIES TO MAKE MONEY THE PAST SEVEN TO NINE YEARS HAVE BEEN GREAT FOR GENERIC DRUG COMPANIES HE SAYS BUT MERCK AND OTHER BIG FIRMS ARE MOVING IN THAT DIRECTION AND THE MARKET IS CHANGING HE SAYS IT REQUIRES ONLY MINIMAL EFFORT PERHAPS A YEAR OR TWO FOR A BIG DRUG FIRM TO WIN FDA APPROVAL OF A NEW GENERIC DRUG IT IS RIDICULOUS TO BE BULLISH ON THESE SMALL GENERIC DRUG STOCKS MR SMITH SAYS THERE IS SO MUCH MOMENTUM INVESTING IN THESE STOCKS RIGHT NOW AND THEY ARE TRADING AT UNBELIEVABLY HIGH VALUATIONS FOR INSTANCE MARSAM PHARMACEUTICALS IS TRADING AT 45 TIMES ESTIMATED EARNINGS FOR 1994 OF 50 CENTS A SHARE MARSAM FELL 3/4 TO 22 1/2 ON FRIDAY THE CHERRY HILL NJ MAKER OF INJECTABLE GENERIC DRUGS POSTED A LOSS OF 27 CENTS A SHARE LAST YEAR LARGELY DUE TO COSTS ASSOCIATED WITH THE ENDING OF A JOINT VENTURE SURE IN 1994 AND 1995 THERE IS GOING TO BE AN UNUSUAL BUBBLE OF OPPORTUNITY WHEN A LOT OF DRUGS COME OFF PATENT IDS'S MR HIRSCH SAYS BUT THAT BUBBLE IS OUTWEIGHED BY THE INCREASING COMPETITION OF THE BIG DRUG COMPANIES THAT ARE STEPPING UP THEIR GENERIC EFFORTS I WOULDN'T CHASE THE STOCKS AT THESE HIGH LEVELS THE RUSSELL 2000 A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES CLOSED UP 027 OR 011 TO 24595 A SHADE UNDER ITS HIGH FOR THE DAY ANTEC SURGED TO 24 FROM ITS OFFERING PRICE OF 18 ON ITS FIRST TRADING DAY THE COMPANY A UNIT OF ITEL CORP SUPPLIES EQUIPMENT FOR THE CABLE TELEVISION INDUSTRY THE COMPANY HAD EXPECTED THE OFFERING AT BETWEEN 14 AND 16 THROUGH ITS LEADUNDERWRITER DONALDSON LUFKIN & JENRETTE ANTEC INCREASED THE NUMBER OF SHARES OFFERED TO 8150000 FROM 74 MILLION ANOTHER NEW OFFERING REDMAN INDUSTRIES JUMPED TO 16 7/8 FROM ITS OFFERING PRICE OF 15 THE OFFERING WAS INCREASED TO 4750000 SHARES FROM THE ORIGINALLY PLANNED 43 MILLION THROUGH UNDERWRITERS LED BY DILLON READ & CO THE COMPANY PRODUCES MANUFACTURED HOMES AMERICAN ECOLOGY JUMPED 2 3/8 TO 10 IT SAID THE CALIFORNIA DEPARTMENT OF HEALTH SERVICES APPROVED ITS LICENSE APPLICATION FOR A LOWLEVEL RADIOACTIVE WASTEDISPOSAL UNIT IN WARD VALLEY 9309200026 930920 TECHNOLOGY IBM TO SHIP MODELS BASED ON INTEL'S PENTIUM CHIP NEW YORK INTERNATIONAL BUSINESS MACHINES CORP SAID IT WOULD START SHIPPING ITS FIRST COMPUTER NETWORK SERVER BASED ON INTEL CORP'S NEWGENERATION PENTIUM CHIP BY THE END OF THIS MONTH IBM ALSO IS EXPECTED TO ANNOUNCE SIX ADDITIONAL SERVER MODELS THAT IT WILL SHIP BY THE END OF THE YEAR UPGRADING THE LIE OF PRODUCTS THAT HANDLE COMPLEX TRANSACTIONS AND SERVE PERSONAL COMPUTER NETWORKS WITH SUCH FUNCTIONS AS ACCESSING FILES AND DATABASES THREE MODELS IN THE NEW IBM LINE WHICH WILL SELL FOR 5000 TO 14000 ARE BASED ON THE PENTIUM CHIP SUCCESSOR TO INTEL'S POWERFUL 486 CHIP DESIGN INDUSTRY ANALYSTS SAID IBM WILL BE AMONG THE FIRST TO DELIVER PENTIUMBASED SERVERS WHOSE INTRODUCTION HAS BEEN OTHERWISE SLOWED BY A LOW SUPPLY OF THE NEW INTEL GENERATION COMPETITION IS INTENSIFYING IN THE SERVER MARKET SIMILAR PRODUCTS HAVE BEEN ANNOUNCED BY A WIDE RANGE OF COMPANIES INCLUDING DELL COMPUTER CORP COMPAQ COMPUTER CORP AND HEWLETTPACKARD CO 9309200025 930920 REVIEW & OUTLOOK EDITORIAL ASIDES FLORIO'S LAWYER BACK AT HER CONFIRMATION HEARING ATTORNEY GENERAL JANET RENO PLEDGED THAT WHAT I HOPE TO DO WITH ALL MY HEART IS MAKE MY APPROACH TO THIS JOB AS NONPOLITICAL AS POSSIBLE IF SOMEONE ASKED HER TO SPEAK AT A POLITICAL DINNER SHE ADDED I WOULD SAY WHY DON'T YOU FIND SOMETHING ELSE FOR ME TO DO AND LET ME TRY TO BE THE NATION'S LAWYER AND STAY OUT OF POLITICS BUT LO THERE WAS MS RENO IN NEW JERSEY RECENTLY STUMPING FOR THE REELECTION OF DEMOCRATIC GOVERNOR JIM FLORIO NO LESS THAN DEMOCRATIC PARTY CHAIRMAN DAVID WILHELM BOASTED IN USA TODAY THAT THE POPULAR MS RENO'S NEW JERSEY APPEARANCE SHOWED HOW PRESIDENT CLINTON WOULD ASSIST OTHER DEMOCRATS THE APOLOGIES OWED TO THE POLITICAL ED MEESE GROW BY THE DAY 9309200024 930920 MARKETING & MEDIA ADVERTISING AD MYTH SENIORS NEED BOY SCOUTS TO WALK ACROSS MADISON AVENUE BY KEVIN GOLDMAN IT'S BECOME AN OLD STORY IN ADVERTISING THE ELDERLY WOMAN IN A NEW COMMERCIAL FOR DORITOS TORTILLA THINS IS A DODDERING OLD FOOL IN ANOTHER SPOT FOR DENNY'S RESTAURANTS AN OLDSTER OBVIOUSLY ADDLED STUMBLES OVER THE CHAIN'S NAME CALLING IT LENNY'S IT MAY BE THE AGE OF POLITICAL CORRECTNESS AND A TIME WHEN THE NATION'S POPULATION IS RAPIDLY SKEWING OLDER BUT ON MADISON AVENUE SENIOR CITIZENS ARE STILL FAIR GAME FOR RIDICULE ALL TOO MANY COMMERCIALS FALL BACK ON STEREOTYPES SHOWING THE AGED AS FEEBLE FOOLISH OR INEPT PASSING THEIR TIME AIMLESSLY IN ROCKING CHAIRS IT IS IN ADVERTISERS' SELFINTEREST TO AVOID SUCH GAFFES ARGUES CAROL M MORGAN PRESIDENT OF THE MINNEAPOLISBASED MARKETING CONSULTANTS STRATEGIC DIRECTIONS GROUP THOSE AGE 50 AND OLDER MAKE UP 35 OF THE POPULATION AND CONTROL 43 OF THE NATION'S DISPOSABLE INCOME ACCORDING TO MODERN MATURITY MAGAZINE QUOTING THE LATEST CENSUS FIGURES THE AGE GROUP NO LONGER DESERVES THE STEREOTYPE THAT IT IS INFIRM OR IN DESPERATE NEED OF HELP MS MORGAN SAYS YET THE OUTDATED IMAGES PERSIST IN THE DORITOS AD FOR EXAMPLE A GRAYHAIRED WOMAN SHUFFLES ALONG MUNCHING ON CHIPS OBLIVIOUS TO THE RUNAWAY STEAMROLLER BARRELING DOWN ON HER COMEDIAN CHEVY CHASE CLIMBS ABOARD A WRECKING BALL TO RESCUE AND HERE IS THE JOKE THE CHIPS THE WOMAN IS PLOWED INTO WET CEMENT IT IS NOT OUR INTENTION TO OFFEND ANYONE SAYS A SPOKESWOMAN FOR DORITOS A UNIT OF PEPSICO'S FRITOLAY DIVISION LIKE ANY HUMOROUS AD THIS WAS DEVELOPED TO ENTERTAIN IT IS AN OUTRAGEOUS SPOOF INCLUDING A SURPRISE TWIST WITH AN OLDFASHIONED WINK BUT SOME CONSUMERS AREN'T LAUGHING WORSE THAN BEING OFFENSIVE IT'S DUMB SAYS DAN DIXON A PARTNER OF OLDER & WISER A SMALL LOS ANGELES AGENCY THAT SPECIALIZES IN ADVERTISING TO THE ELDERLY MOST ADVERTISING CAMPAIGNS DON'T PORTRAY OLDER PEOPLE WITH ANY SEMBLANCE OF REALITY ANYMORE NOR IS CHANGE LIKELY ANYTIME SOON WE'RE MAKING PROGRESS IN INCHES SAYS MR DIXON'S PARTNER RON PHILLIPS THE TOPIC OF MEDIA AND THE AGING WAS DISCUSSED THIS MONTH AT A CONFERENCE SPONSORED BY THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES'S CENTER ON AGING THE AD I HATE IS FOR DENNY'S SAYS ANNA RAHMAN PROJECT COORDINATOR FOR THE CONFERENCE IT'S DEGRADING DISRESPECTFUL AND SHOCKING SINCE DENNY'S CATERS TO SO MANY SENIOR CITIZENS IN THE RADIO SPOT TWO WOMEN PORTRAYING SISTERS CHAT ABOUT DINNER SPECIALS WHEN ONE TRIPS OVER THE RESTAURANT'S NAME FUMES MS RAHMAN WHAT DO THEY THINK THEY'RE SHOWING ALZHEIMER'S A SPOKESWOMAN FOR DENNY'S BASED IN SPARTANBURG SC SAYS NO OFFENSE WAS INTENDED SOME INDUSTRY EXPERTS LAY THE BLAME ON THE FACT THAT ADVERTISING BE IT COPYWRITING OR STRATEGIC PLANNING OR ART DESIGN IS DOMINATED BY YOUNG GOGETTERS WHO MAY BE UNAWARE OR WORSE HEEDLESS OF OLDER CONSUMERS' SENSITIVITIES ONE OF THE HARSHEST CRITICS OF THE TREND IS TERESA DRURY MODERN MATURITY'S ADVERTISING STANDARDS DIRECTOR ADVERTISERS SHE SAYS PICK THE WORST TRAITS OF THE GROUP MAKING EVERYONE BELIEVE THAT OLD IS SOMETHING YOU DON'T WANT TO BE MS DRURY SAYS THE MONTHLY PUBLISHED BY THE AMERICAN ASSOCIATION OF RETIRED PERSONS BASED IN WASHINGTON DC REJECTS APPROXIMATELY 30 OF THE ADS SUBMITTED FOR CONSIDERATION BECAUSE OF NEGATIVE PORTRAYALS OF ITS CONSTITUENCY SHE DECLINES TO CITE SPECIFIC EXAMPLES INSTEAD MS DRURY SAYS THE PERIODICAL REJECTS ANYTHING THAT SHOWS A STEREOTYPE AND THAT MEANS NO ROCKING CHAIRS AND WHEELCHAIRS READERS OF MODERN MATURITY SHE SAYS KNOW THEY ARE 50 YEARS OLD OR OLDER OUR ADS DON'T MENTION LEAKY BLADDERS IF THIS IS HAPPENING TO SOMEONE THEY'VE FIGURED OUT IT'S EMBARRASSING AND THEY NEED SOMETHING FOR IT OUR ADS ARE MORE STRAIGHTFORWARD AND THEY SHOW OLDER PEOPLE IN A POSITIVE LIGHT ADVERTISERS PAY PREMIUM RATES TO BE INCLUDED IN THE MAGAZINE WHICH HAS A CIRCULATION OF APPROXIMATELY 23 MILLION SUBSCRIPTIONS ARE INCLUDED WITH MEMBERSHIP IN AARP A FULLPAGE AD COSTS A LOFTY 225000 ACCORDING TO MS DRURY THE MAGAZINE WELCOMES ADS FROM SAY KRETSCHMER WHEAT GERM A QUAKER OATS PRODUCT IN ONE RECENT AD A BALD MAN IN SNORKELING GEAR IS SEEN SUBMERGED IN THE SURF OFF A TROPICAL ISLAND THE HEADLINE READS WHAT'S GOTTEN INTO MR LEWIS THE ANSWER IT COULD BE THE KRETSCHMER WHEAT GERM ANOTHER AD FOR USAIR HEADLINED NOW IS THE TIME TO HAVE THE TIME OF YOUR LIFE SHOWS A SMILING PHYSICALLY FIT TANNED COUPLE LOUNGING IN A POOL EVEN A MAJOR BEER BREWER ANHEUSERBUSCH PRODUCES A SPECIAL AD AIMED AT THE OLDERAGE CATEGORY ADS FOR O'DOUL'S BEER SHOW ANOTHER ROBUST OLDER COUPLE PLAYING TENNIS THESE ADS ARE A FAR CRY FROM THOSE FOR EDY'S ICE CREAM ITS TELEVISION COMMERCIALS SHOW AN ELDERLY MAN HUNCHED IN A ROCKING CHAIR WHEN HE'S TOLD THAT EDY'S ICE CREAM HAS BEEN PURCHASED HE SLOWLY RISES AND THEN SUDDENLY PERFORMS A FLAWLESS SPLIT THAT WOULD DO MARY LOU RETTON PROUD WE WOULD NEVER WANT TO OFFEND OLDER PEOPLE SAYS AN EDY'S SPOKESWOMAN THE SENIOR MARKET IS ONE OF THE GREATEST CONSUMERS OF ICE CREAM WE JUST LIKE TO FIND COMMERCIALS THAT PUT SMILES ON PEOPLE'S FACES SHE EVEN MENTIONS THE COMPANY'S GOLDEN CONE CLUB FOR SENIORS WHICH CONSISTS OF A NEWSLETTER AND DISCOUNT COUPONS MS MORGAN OF STRATEGIC DIRECTIONS SEES A HUGE LACK OF SOPHISTICATION AMONG PEOPLE ADVERTISING TO THE MATURE MARKET AND SHE DECLARES IT'S TIME THE ADVERTISERS GREW UP AND MATURED MARK GOLDSTEIN PRESIDENT OF AGENCY EARLE PALMER BROWN IS LEAVING TO PURSUE A NEW OPPORTUNITY IN THE MIDWEST THE AGENCY SAID MR GOLDSTEIN COULDN'T BE REACHED INDUSTRY EXECUTIVES SAID MR GOLDSTEIN IS GOING TO MINNEAPOLIS AGENCY FALLONMCELLIGOTT A UNIT OF WPP GROUP TO OVERSEE AN INTEGRATED MARKETING UNIT FORMED IN A RESTRUCTURING IN MAY FALLON EXECUTIVES EITHER COULDN'T BE REACHED OR DIDN'T RETURN PHONE CALLS A SPOKESMAN FOR EARLE PALMER BROWN BASED IN BETHESDA MD SAID MR GOLDSTEIN'S DUTIES PRIMARILY NEW BUSINESS WOULD BE ASSUMED BY THE HEADS OF ITS OPERATING OFFICES FCB ACQUISITION AS EXPECTED FOOTE CONE & BELDING CHICAGO SAID IT HAS SIGNED AN AGREEMENT TO ACQUIRE AGENCY BORDERS PERRIN & NORRANDER WITH 65 EMPLOYEES AND 1992 BILLINGS OF ABOUT 50 MILLION FOOTE CONE SAID IT WILL ACQUIRE THE SHOP'S SEATTLE AND PORTLAND OFFICES AND TAKE A MAJORITY STAKE IN ITS SANDSTROM DESIGN GROUP PETER HATT CHAIRMAN AND CHIEF EXECUTIVE AND BILL BORDERS PRESIDENT WILL REMAIN IN PLACE REPORTING TO JACK BALOUSEK FOOTE CONE PRESIDENT WHO'S NEWS OMNICOM GROUP'S ALTSCHILLER REITZFELD NEW YORK SAID ROBERT REITZFELD VICE CHAIRMAN AND CHIEF CREATIVE OFFICER IS LEAVING AT YEAR'S END WHEN HIS CONTRACT EXPIRES MR REITZFELD 52 SAID HE WANTS TO PURSUE OTHER OPTIONS IN ADVERTISING 9309200023 930920 COMMODITIES OIL PRICES MAY SOON HEAD UP SOME EXPECT FIRMING EVEN IF OPEC FAILS TO CURB PRODUCTION BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL AFTER A MONTHSLONG SLIDE PETROLEUM PRICES SOON MAY HEAD HIGHER DESPITE OIL TRADERS' GLOOMANDDOOM ATTITUDE MUCH DEPENDS ON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHICH OPENS ITS MEETING SATURDAY IN GENEVA TO SET A FOURTHQUARTER PRODUCTION LEVEL PERCEPTIONS ARE WIDESPREAD THAT PRICES DOWN ABOUT 3 A BARREL SINCE OPEC'S INCONCLUSIVE JUNE MEETING COULD CRASH UNLESS OPEC CURBS ITS RUNAWAY OUTPUT HOWEVER A SMALL BUT GROWING GROUP OF OIL ECONOMISTS AND ANALYSTS IS QUESTIONING SUCH A BEARISH OUTLOOK EVEN IF OPEC AGAIN FAILS TO REACH A CREDIBLE OUTPUT PACT THESE ANALYSTS SEE PRICES FIRMING WITH ONLY LUKEWARM HELP FROM OPEC THEY SAY FUNDAMENTAL FACTORS SUGGEST THE OIL MARKET IS NEAR A FRAGILE BALANCE AS THE PEAKUSE WINTER PERIOD APPROACHES GIVEN THE SUPPLYDEMAND OUTLOOK WHAT WE ARE SEEING IS A BOTTOMING AREA FOR PRICES SAID MICHAEL ROTHMAN A FIRST VICE PRESIDENT IN MERRILL LYNCH'S COMMODITY RESEARCH GROUP HE EXPECTS WEST TEXAS INTERMEDIATE THE BENCHMARK CRUDE SELLING FOR AROUND 17 A BARREL TO RETURN TO THE 20TO21 RANGE THIS WINTER MR ROTHMAN AND OTHERS DON'T RULE OUT THE NEGATIVE FACTORS INFLUENCING THE OIL MARKET AT LEAST PSYCHOLOGICALLY THIS YEAR WORLD OIL DEMAND IS DOWN WHILE SUPPLIES ARE UP DEMAND IS LESS THAN EXPECTED BECAUSE OF ECONOMIC MALAISE IN THE WESTERN INDUSTRIAL NATIONS AND CHAOS IN THE FORMER SOVIET UNION EARLY THIS YEAR THE INTERNATIONAL ENERGY AGENCY PROJECTED THAT WORLD DEMAND IN 1993 WOULD RISE BY ABOUT 500000 BARRELS A DAY FROM 1992'S 67 MILLION BARRELS A DAY BUT NOW THE IEA EXPECTS THIS YEAR'S DEMAND TO BE DOWN SLIGHTLY BUT OPEC'S OUTPUT OF 247 MILLION BARRELS A DAY REMAINS AT A DECADE HIGH AND MORE THAN ONE MILLION BARRELS A DAY ABOVE ITS CEILING OF 236 MILLION BARRELS THIS HAS LED TO WIDESPREAD VIEWS THAT IT IS OVERPRODUCING ALTHOUGH COMPANIES ARE BUYING THE CHEAPER OIL AND STORING THE SURPLUS SUPPLIES FROM SOME NONOPEC AREAS HAVE INCREASED LATELY IN THE NORTH SEA WHERE FIVE NEW OIL FIELDS ARE SCHEDULED TO BEGIN PRODUCING BEFORE YEAR END PRODUCTION IS EXPECTED TO REACH A NEW PEAK OF SOME FIVE MILLION BARRELS A DAY AND OIL EXPORTS FROM THE FORMER SOVIET REPUBLICS ARE HOLDING HIGHER THAN EXPECTED ALSO THE SHADOW OF SADDAM HUSSEIN STILL HANGS OVER THE OIL MARKET AS IRAQ TRIES HARDER TO GET THE UNITED NATIONS TO LIFT THE BAN ON ITS OIL EXPORTS IRAQ IS THE CLOUD THAT DOESN'T GO AWAY SAID LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION OPEC IS IN THE SPOTLIGHT MEANWHILE NOT ONLY BECAUSE IT EVENTUALLY MUST MAKE ROOM FOR IRAQ TO RETURN TO THE WORLD OIL MARKET BUT ALSO BECAUSE IT MUST BRING KUWAIT BACK INTO THE FOLD WHILE SATISFYING CHRONIC OVERPRODUCERS SUCH AS NIGERIA AND IRAN ADDING DIFFICULTY IS THE ANIMOSITY BETWEEN IRAN AND SAUDI ARABIA THE OPEC KINGPINS STILL ALL 12 OPEC MEMBERS HAVE FINANCIAL PROBLEMS AND WANT HIGHER OIL PRICES SO AS TO INCREASE THEIR REVENUE ADDING URGENCY TO THEIR QUEST IS THE SLUMP IN OPEC'S PRICING MEASURE AN AVERAGE OF A BASKET OF SEVEN CRUDES WHICH USUALLY LAGS BEHIND THE PRICE OF THE US BENCHMARK CRUDE BY ABOUT 2 A BARREL IT HAS GONE BELOW 15 A BARREL AND INTO THE CRITICAL STAGE WHERE OPEC IS GOING TO HAVE TO MAKE A CONCERTED EFFORT TO GET ITS ACT TOGETHER SAID TOM CURTIS DIRECTOR OF ENERGY RESEARCH AT PEGASUS ECONOMETRIC ONE RECIPE FOR A LIKELY PRODUCTION AGREEMENT THAT SEEMS TO BE GAINING POPULARITY AMONG SOME OPEC DELEGATES IS A PRODUCTION CEILING THAT WOULD LEGITIMIZE TOTAL OUTPUT INCLUDING KUWAIT'S TWO MILLION BARRELS A DAY AT THE CURRENT LEVEL ONE LEADING OIL MINISTER ALIRIO PARRA OF VENEZUELA LAST WEEK PROPOSED A FOURTHQUARTER CEILING OF 245 MILLION BARRELS A DAY YESTERDAY AHMAD ALBAGHLI KUWAIT'S OIL MINISTER RECOMMENDED A CEILING OF 245 MILLION TO 247 MILLION BARRELS SUCH A CEILING WITH NEW PLEDGES OF ADHERENCE WOULD PROVIDE A BULLISH SIGNAL TO THE OIL MARKET AND LIKELY WOULD TRIGGER A PRICING TURNAROUND ANALYSTS SAID AT AN OPEC PRODUCTION LEVEL OF 245 MILLION BARRELS A DAY PRICES WILL GO UP SAID ANTONIO M SZABO PRESIDENT OF STONE BOND CORP A HOUSTON OILCONSULTING FIRM AGREEING IS CYRUS H TAHMASSEBI THE CHIEF ECONOMIST FOR ASHLAND OIL INC WHO ALSO BELIEVES BEARISH PSYCHOLOGY RATHER THAN SUPPLYDEMAND FUNDAMENTALS HAS BEEN DRIVING THE OIL MARKETS THE DEMAND NUMBERS ARE NOT AS BULLISH AS THEY WERE BEFORE REVISIONS HE SAID BUT THEY STILL SHOW THE CALL ON OPEC OIL TO BE 245 MILLION TO 25 MILLION BARRELS A DAY IN THE FOURTH QUARTER THESE FORECASTS FOR THE NEED FOR OPEC OIL AFTER THE FOURTH QUARTER'S SEASONAL UPTURN IN DEMAND MAY PROVE CONSERVATIVE AFTER ITS LATEST REVISIONS THE INTERNATIONAL ENERGY AGENCY ESTIMATED AN AVERAGE 684 MILLION BARRELS A DAY FOR FOURTHQUARTER WORLD DEMAND THE IEA DOESN'T SPELL OUT FUTURE DEMAND FOR OPEC OIL BUT ITS FIGURES SHOW THAT NONOPEC SUPPLIES MAY BE DOWN SLIGHTLY IN THE FOURTH QUARTER FROM A YEAR EARLIER DESPITE PRODUCTION GAINS IN THE NORTH SEA SUBTRACTION OF THE IEA'S FORECAST FOR NONOPEC SUPPLIES FROM ITS WORLD DEMAND ESTIMATE LEAVES A FOURTHQUARTER GAP OF 256 MILLION BARRELS A DAY THAT WILL HAVE TO BE FILLED BY OPEC OIL AND BY WITHDRAWALS FROM INVENTORIES ALTHOUGH INVENTORIES NORMALLY ARE DRAWN DOWN IN THE FOURTH QUARTER IT GENERALLY IS ASSUMED THAT THE HIGHEST WITHDRAWAL VOLUME WOULDN'T EXCEED 600000 BARRELS A DAY THAT WOULD LEAVE 25 MILLION BARRELS A DAY TO BE SUPPLIED BY OPEC AND THESE CALCULATIONS DON'T TAKE INTO ACCOUNT ANY SIGNIFICANT RECOVERY OF THE WORLD'S ECONOMIES NOR DO THEY PROVIDE A CUSHION FOR THE INCREASED FUEL USE THAT WOULD RESULT FROM A SEVERE WINTER IN THE US OR IN EUROPE MEANWHILE IN A MORGAN STANLEY REPORT OIL ECONOMIST PAUL MLOTOK SAID CONCERN ABOUT IRAQI OIL SHOULD RECEDE WHILE THE IRAQUN TALKS GO NOWHERE ALSO OIL MARKETS SHOULD TIGHTEN AS THE SEASONAL DEMAND PATTERN CHANGES HE SAID ADDING THEREFORE WE EXPECT OIL PRICES TO TREND BACK TOWARD 20 A BARREL LATER IN THE YEAR LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK COPPER TRADERS SAY THEY WILL BE WATCHING FOR SOME STABILIZATION OF COPPER FUTURES PRICES THIS WEEK AFTER A SHARP SELLOFF ON FRIDAY ON THE NEW YORK COMMODITY EXCHANGE COPPER FOR DECEMBER DELIVERY TUMBLED 24 CENTS FRIDAY TO SETTLE AT 7865 CENTS A POUND AFTER TOUCHING A LOW OF 775 FUTURES PRICES ARE SOME 17 BELOW JULY PEAKS AND ARE DOWN TO THEIR LOWEST LEVELS IN FIVE YEARS DEALERS SAID MAINLY BECAUSE OF WEAK DEMAND IN EUROPE AND JAPAN AND BIG INVENTORIES AT OFFICIAL WAREHOUSES INVENTORIES ON THE LONDON METAL EXCHANGE FOR EXAMPLE CLIMBED TO 548000 METRIC TONS AT WEEK'S END COMPARED WITH 109000 TONS AT THE END OF 1989 COPPER PRICES WERE HELD AT ARTIFICIALLY HIGH PRICES THIS SUMMER DEALERS SAID AS A RESULT OF A TECHNICAL SQUEEZE BY JAPANESE ASIAN AND LONDON BUYERS DEALERS SAID THE LONDON METAL EXCHANGE HOWEVER RECENTLY INTERVENED TO NORMALIZE TRADING CONDITIONS SAID WILLIAM ADAMS METALS ANALYST AT RUDOLF WOLFF & CO AND AS A RESULT HOLDERS OF FUTURES CONTRACTS DECIDED TO SELL FOLLOWING SUCH A SHARP DECLINE PRICES SHOULD BEGIN TO STABILIZE MR ADAMS SAID 9309200022 930920 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CORNING INC 100 MILLION OF DEBENTURES DUE SEPT 15 2013 PRICED AS 675S AT 99455 TO YIELD 68 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LAZARD FRERES & CO FEDERAL HOME LOAN BANK SYSTEM 20 MILLION OF MEDIUMTERM NOTES DUE SEPT 24 1996 PRICED AT PAR TO YIELD 423 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF EIGHT BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC PMI ACQUISITION CORP 200 MILLION OF SENIOR SUBORDINATED NOTES DUE SEPT 1 2003 PRICED AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF DEBENTURES DUE SEPT 27 1996 PRICED AT PAR TO YIELD 426 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 12 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP MEDIUMTERM NOTES DUE OCT 5 1998 PRICED AT PAR TO YIELD 455 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 32 BASIS POINTS ABOVE TREASURYS THE COUPON INCREASES TO 555 AFTER TWO YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ADESA CORP 25 MILLION COMMON SHARES INCLUDING ONE MILLION OFFERED BY CERTAIN SELLING SHAREHOLDERS AT 1375 A SHARE ACCORDING TO THE COMPANY WILLIAM BLAIR & CO AND ROBINSONHUMPHREY CO ARE COMANAGERS OF THE OFFERING PHILADELPHIA CONSOLIDATED HOLDING CORP INITIAL PUBLIC OFFERING OF 28 MILLION SHARES OF COMMON STOCK AT 13 A SHARE ACCORDING TO THE COMPANY THE OFFERING WILL BE UNDERWRITTEN BY SG WARBURG & CO AND CHICAGO CORP COHEN & STEERS TOTAL RETURN REALTY FUND INITIAL OFFERING OF 67 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES G021 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS BARCLAYS BANK PLC UK 100 MILLION OF 7875 UNDATED SUBORDINATED EUROBONDS AT ISSUE AND FIXED REOFFER PRICE 99088 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD MARGIN OF 90 BASIS POINTS ABOVE 8 GILT DUE 2003 CALLABLE AT ANY TIME UNTIL OCT 19 2003 AT HIGHER OF PAR OR LEVEL GILT YIELDS BONDS CALLABLE AT PAR ON OCT 20 2003 AND EVERY 10 YEARS THEREAFTER IF BONDS AREN'T CALLED AT 10YEAR ANNIVERSARY AND ON SUBSEQUENT CALL DATES COUPON WILL BE RESET AT HIGHER OF CURRENT COUPON ON BONDS OR AT 190 BASIS POINTS ABOVE YIELD ON THENPREVAILING 10YEAR BENCHMARK GILT FEES 0625 POINT CREDIT NATIONAL FRENCH AGENCY 100 MILLION OF SUBORDONATED COLLARED FLOATINGRATE EURONOTES DUE OCT 18 2005 AT ISSUE AND FIXED REOFFER PRICE 99875 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST FLOATS AT 25 BASIS POINTS BELOW SIXMONTH LONDON INTERBANK OFFERED RATE MINIMUM COUPON OF 5 AND MAXIMUM OF 8 FEES 05 INTEREST PAYABLE SEMIANNUALLY HELABA FINANCE BV NETHERLANDS GERMAN PARENT 75 MILLION OF EURONOTES DUE OCT 6 1995 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD REDEEMABLE AT 100 PLUS 20 TIMES DIFFERENCE BETWEEN 595 AND FIVEYEAR FRENCH FRANC SWAPRATE OFFER PRICE AS QUOTED ON TELERATE PAGE 42284 THREE DAYS BEFORE MATURITY GUARANTOR LANDESBANK HESSENTHURINGEN GIROZENTRALE THERE IS A LONG COUPON MINNESOTA MINING & MANUFACTURING CO US 150 MILLION CANADIAN DOLLARS OF 65 EUROBONDS DUE OCT 15 1998 AT ISSUE PRICE 101375 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9975 TO YIELD 656 A MARGIN OF 15 BASIS POINTS ABOVE COMPARABLE CANADIANGOVERNMENT BOND FEES 1875 9309200021 930920 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED THREE NEW LISTINGS INCLUDING TWO INITIAL OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING ONE INITIAL OFFERING THE BIG BOARD BEGAN TRADING SHARES IN THE FOLLOWING INITIAL OFFERINGS THE AMERICAN DEPOSITARY RECEIPTS OF COCACOLA FEMSA SA DE CV MEXICO CITY A SOFT DRINK CONCERN UNDER KOF COHEN & STEERS TOTAL RETURN REALTY FUND INC NEW YORK A CLOSEDEND FUND UNDER RFI AMERICAN SELECT PORTFOLIO INC MINNEAPOLIS A CLOSEDEND FUND UNDER SLA NUVEEN PREMIUM INCOME MUNICIPAL FUND 6 CHICAGO A CLOSEDEND FUND UNDER NPB EQUITABLE OF IOWA COS DES MOINES AN INSURANCE HOLDING COMPANY FORMERLY AN OVERTHECOUNTER STOCK WILL TRADE UNDER EIC ICF KAISER INTERNATIONAL INC FAIRFAX VA AN ENVIRONMENTAL AND ENGINEERING CONSULTING FIRM FORMERLY AN OVERTHECOUNTER STOCK WILL TRADE ON THE BIG BOARD UNDER ICF NEW ENGLAND INVESTMENT COS LP BOSTON AN INVESTMENT MANAGEMENT FIRM FORMED BY THE MERGER OF NEW ENGLAND INVESTMENT COS AND REICH & TANG LP BEGAN TRADING UNDER NEW THE NATIONAL MARKET SYSTEM OF OVERTHECOUNTER MARKET ADDED TWO INITIAL OFFERINGS CASINO RESOURCE CORP ELKHORN WISC A DIRECT MARKETER AND DEVELOPER OF REAL ESTATE UNDER CSNR AND WARRANTS UNDER CSNRW AND PAIRGRAIN TECHNOLOGIES INC CERRITOS CALIF A TELECOMMUNICATIONS PRODUCTS COMPANY UNDER PAIR THE NASDAQ ALSO BEGAN TRADING SHARES IN LDDS COMMUNICATIONS INC JACKSON MISS A LONGDISTANCE TELECOMMUNICATIONS CONCERN UNDER LDDS THE AMEX BEGAN TRADING SHARES IN THE INITIAL OFFERING OF VAN KAMPEN MERRITT FLORIDA MUNICIPAL OPPORTUNITY TRUST A CLOSEDEND FUND UNDER VOF THE AMEX ALSO BEGAN TRADING SHARES IN TRINITECH SYSTEMS INC STAMFORD CONN A MAKER OF DATAENTRY PRODUCTS UNDER TSI THE COMPANY FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET TOP SOURCE INC PALM BEACH GARDENS FLA A DEVELOPER OF ADVANCED TECHNOLOGIES AND PRODUCTS FOR THE TRANSPORTATION INDUSTRY BEGAN TRADING UNDER TPS TOP SOURCE FORMERLY TRADED ON THE AMEX'S EMERGING COMPANY MARKETPLACE THE AMEX ALSO BEGAN TRADING SHARES IN SERENPET INC CALGARY ALBERTA AN OIL AND GAS CONCERN UNDER SRI SERENPET ALSO TRADES ON THE TORONTO AND ALBERTA STOCK EXCHANGES THE AMEX BEGAN TRADING OPTIONS ON STATION CASINOS INC AND THERMEDICS INC 9309200020 930920 LEISURE & ARTS TELEVISION MUCH ADO ABOUT BLUE' BY DOROTHY RABINOWITZ VIEWERS DRAWN TO NYPD BLUE BECAUSE OF ITS ADVANCE REPUTATION FOR SEXUAL SIZZLE AND OBSCENITY SHOULD PREPARE TO BE DISAPPOINTED THERE IS NOTHING THAT CAN REASONABLY BE CALLED SHOCKING IN THE NEW ABC POLICE SHOW BEGINNING TOMORROW 1011 PM NOTWITHSTANDING A VULGAR GESTURE EARLY ON AND A BEDROOM SCENE OR TWO INVOLVING PARTIAL NUDITY NONE OF THIS IS PARTICULARLY SCABROUS ESPECIALLY COMPARED WITH MUCH ELSE ON THE NETWORKS FOR REAL OFFENSIVENESS AFTER ALL NOTHING CAN BEAT THE ADOLESCENT SNIGGERING AND SUGGESTIVENESS IN THE PRIMETIME SITCOMS NOW CONTAMINATING THE AIRWAVES WHAT THEN IS THERE TO SAY ABOUT NYPD BLUE FOR ONE THING IT IS FIRSTCLASS TELEVISION AS WILL BE CLEAR EVEN TO PEOPLE WHO AVOID POLICE SHOWS AS MUCH AS POSSIBLE AND THERE ARE A LOT OF US EPISODE ONE WRITTEN BY DAVID MILCH AND STEVEN BOCHCO THE SERIES' CREATORS SIZZLES ALL RIGHT AND NOT WITH SEX OR NUDITY WHAT SIZZLES ARE THE PERFORMANCES NOTABLY THAT OF DAVID CARUSO AS DETECTIVE KELLY AND THAT OF DENNIS FRANZ AS THE TERMINALLY OBSESSED DETECTIVE SIPOWICZ THIS EPISODE BEGINS WITH A COURTROOM SCENE IN WHICH A MOB LAWYER WHO BEARS A DISTINCT RESEMBLANCE TO A CERTAIN REALLIFE MOUTHPIECE GETS HIS CLIENT OFF DETECTIVE KELLY ANXIOUSLY WATCHES HIS OLDER PARTNER SIPOWICZ RAGE AT THE LEGAL TECHNICALITIES THAT PERMIT A NOXIOUS CRIMINAL TO ESCAPE PUNISHMENT AND FALL EVER DEEPER INTO ALCOHOLISM THIS IS HARDLY ORIGINAL PLOTTING BUT THE TRIUMPH OVER CLICHE IS AS USUAL IN THE DETAIL DETAIL THAT GIVES MR FRANZ'S EMBITTERED SIPOWICZ AN AUTHENTICITY UNNERVING TO WATCH HIS FURIOUS GESTURE AT A FEMALE PROSECUTOR IS VULGAR ALL RIGHT BUT SO NATURALLY ROOTED IN THE MOMENT DOES THE GESTURE SEEM THAT IT CARRIES NO FEELING OF THE GRATUITOUSLY OBSCENE MR CARUSO'S DETECTIVE KELLY IS KIND YOUNG GALLANT AT ONCE CALLOW AND KNOWING AND TOUGH VERY TOUGH THE SORT OF LAWMAN CITIZENS WOULD LIKE TO BELIEVE IS OUT THERE ON THE JOB HE TALKS THE TALK OF HIS CLASS AND CULTURE AND THERE IS NO MISTAKING IT WHICH IS ALSO TO SAY THERE'S NO MISTAKING HOW ADROITLY SCULPTED THIS CHARACTER IS THE SAME CAN BE SAID FOR THE SCRIPT'S TEXTURE OVERALL THEIR TEXTURE SOFT AND WITHOUT DRUMROLLS AND LIGHTNING IS WHAT MAKES THE SEXUAL COUPLINGS LESS LUDICROUS THAN PRIMETIME BEDROOM ACTION TENDS TO BE STILL AS IS USUALLY THE CASE WITH SUCH SIDESHOWS THEY AREN'T TERRIBLY INTERESTING THEY REALLY ARE HERE TO SWELL A CHORUS START A SCENE OR TWO AND THEY DO AN ENTIRE PLOT LINE IN FACT INVOLVING THE SURPRISING ACTIVITIES OF ONE OF KELLY'S COLLEAGUES OFFICER LICALSI AMY BRENNEMAN SURPRISES OF ANY KIND AND ANYTHING APPROXIMATING REAL SUSPENSE ARE SUCH RARITIES IN NETWORK DRAMA IT IS ALWAYS SOMETHING OF A SHOCK TO COME UPON THEM HAPPY IS THE NETWORKWATCHER WHO CAN SPEND MORE THAN TWO SECONDS IN GENUINE WONDERMENT AS TO HOW A STORY WILL TURN OUT OR IN IMPATIENCE TO KNOW WHAT'S GOING TO HAPPEN NEXT EVERYBODY INCLUDING THE DOG KNOWS WHAT IS GOING TO HAPPEN NEXT AND KNOWS IT EARLY IF THE MOST UNLIKELY MAN IN TOWN IE THE PROSPEROUS BANKER AND PILLAR OF THE COMMUNITY STANDS ACCUSED BY THE TOWN DRUNK OF HAVING ROBBED THE COMMUNITY'S WIDOWS AND ORPHANS BLIND AND OF HAVING FEASTED ON THE FLESH OF CHILDREN IT'S A CERTAINTY FROM THE OUTSET THAT THE TV PLOT MUST END WITH THE REVELATION THAT THIS IS TRUE IF A STORY HAS THE MOST DEVOTED WIFE AND MOTHER IN AMERICA SWEARING THAT THE LAST THING SHE WANTS IS TO LEAVE HOME AND HEARTH AND SERVICE TO THE FAMILY TO GO OUT AND COMPETE IN A MAN'S WORLD IT'S A SURE BET THAT THIS WOMAN WILL FIVE SCENES LATER BE IN LAW SCHOOL CHALLENGING PROFESSORS WITH HER BRILLIANCE AND WOWING HER YOUNGER CLASSMATES IF A SCRIPT HAS PROVEN FRAUDS AND LIARS ACCUSING A MOST UPRIGHT AND LOVING FATHER OF SEXUAL MOLESTATION THERE CAN STILL BE NO DOUBT THAT IT WILL TURN OUT AS A CANADIAN IMPORT DID THAT AIRED ON CBS NOT LONG AGO THAT THE FATHER IS GUILTY THE FIX IN SHORT IS ALWAYS IN NEON BRIGHT FROM THE OUTSET SO FAR NYPD BLUE HAS MANAGED TO AVOID DREARY PREDICTABILITY BUT THERE ARE ALREADY DANGER SIGNS IN THE BERNHARDT GOETZLIKE CHARACTER AGGRIEVED AT CRIMINALS WHO LOOKS CLOSE TO BEING SET UP FOR WHAT COULD BE A PROFOUNDLY UNSURPRISING RESOLUTION SHOWING WHY PRIVATE CITIZENS SHOULDN'T CARRY GUNS FOR PROTECTION IT WILL BE A GOOD PORTENT IF THE SHOW'S WRITERS MANAGE TO RESIST FORMULAIC DITHERING OF THIS KIND FICTION HAS A HARD TIME OF COURSE KEEPING UP WITH REALITY IN OUR EXCEEDINGLY STRANGE TIMES ANYONE DOUBTING JUST HOW STRANGE REALITY IS IS INVITED TO TUNE IN TO CAMPUS CULTURE WARS FIVE STORIES ABOUT PC AIRING THURSDAY 101130 PM ON PBS PBS AIR DATES AND TIMES VARY SO CHECK LOCAL LISTINGS THE SHOW SHOULD BE OF PARTICULAR INTEREST TO PARENTS PLUNKING DOWN TENS OF THOUSANDS OF DOLLARS TO BUY THEIR CHILDREN A COLLEGE EDUCATION SOME EDUCATION THE FILM PROVIDES DETAIL WITH OCCASIONAL AND UNNECESSARY REENACTMENTS OF FIVE CASES INVOLVING THE TRIUMPH OF IDEOLOGY OVER INTELLECTUAL FREEDOM AND OVER THE RIGHT TO FREE SPEECH AND OF THE HEAVY COMPLICITY OF UNIVERSITY PRESIDENTS DEANS AND OTHER OFFICIALS IN THIS TOTALITARIAN UNDERTOW SOME OF THESE CASES ARE BETTER KNOWN THAN OTHERS AMONG THEM THAT OF THE PENN STATE ENGLISH PROFESSOR AND FEMINIST THINKER WHO WAS OUTRAGED TO FIND A REPRODUCTION OF A GOYA NUDE IN THE CLASSROOM ASSIGNED HER ARGUING THAT THE PICTURE REPRESENTED A FORM OF SEXUAL HARASSMENT AND WOULD HAVE A CHILLING EFFECT SHE DEMANDED ITS REMOVAL A PERSONAGE KNOWN AS THE CAMPUS GENDER EQUITY SPECIALIST CALLED IN TO RESOLVE MATTERS SUGGESTED A MALE NUDE BE ADDED TO THE WALL THIS INVENTIVE SOLUTION WAS NEEDLESS TO SAY REJECTED A STUDENT LEADER OF A CAMPUS FEMINIST GROUP COMES FORWARD TO OBSERVE EARNESTLY THAT THOSE EARLY PAINTINGS THE RENAISSANCE ARTISTS SHE MEANS SERVED AS A KIND OF PORNOGRAPHY BECAUSE THEY DIDN'T HAVE PLAYBOY IN THOSE DAYS WERE SUCH AN UTTERANCE TO SAY NOTHING OF THE ENGLISH PROFESSOR'S PRONOUNCEMENTS TO APPEAR IN A WORK OF FICTION IT WOULD OF COURSE BE DISMISSED AS WILDLY IMPROBABLE EXAGGERATION BUT NO EXTREME OF LUNACY OR REPRESSION IS IMPROBABLE ON THE CAMPUSES AS THIS FILM BY MICHAEL PACK SHOWS ESPECIALLY IN THE SEARING STORY OF THE FATE THAT BEFELL UNIVERSITY OF PENNSYLVANIA PROF MURRAY DOLFMAN CHARGED WITH VIOLATING THE CANONS OF SPEECH ORTHODOXY 9309200019 930920 CREDIT MARKETS BOND PLAY EVOLVES ON IMMIGRANTS' WAGES BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IMMIGRATION OFFICIALS WONDER HOW TO COPE WITH WAVES OF MEXICAN IMMIGRANTS BUT WALL STREET THINKS IT HAS FOUND A WAY TO PROFIT SOCALLED TEXMEX BONDS LIKE THE CUISINE THESE NEW BONDS ARE A SPICY MIXTURE OF AMERICAN AND MEXICAN INGREDIENTS WALL STREET IS HOPING US INVESTORS WILL EAT THEM UP WHAT WILL BACK THESE BONDS IS MONEY ORDERS NAMELY THE MONEY ORDERS ROUTINELY SENT BY MEXICAN IMMIGRANTS MANY OF THEM ILLEGAL FROM THE US BACK TO THEIR FAMILIES IN MEXICO THE NEW BONDS ARE STILL A GLEAM IN AN INVESTMENT BANKER'S EYE FORMAL PLANS HAVE YET TO BE FILED WITH REGULATORS BUT THERE SEEMS TO BE AN APPETITE FOR SUCH BONDS IT'S ANOTHER SIGN OF INVESTORS' GROWING ARDOR FOR ALL THINGS LATIN AMERICAN IN A LOWINTERESTRATE ERA WHERE THE LONGTERM US TREASURY BOND YIELDS JUST 604 A LOOK AT HOW TEXMEX BONDS ARE BEING STRUCTURED SHOWS HOW THE STREET IS GOING TO INCREASING LENGTHS TO TAME CERTAIN RISKS OF INVESTING ABROAD NOTABLY THE RISK THAT A FOREIGN CURRENCY'S ZIGZAGS AGAINST THE DOLLAR WILL WHACK THE VALUE OF FOREIGN INVESTMENTS DESPITE THE MEXICAN CONNECTION TEXMEX BONDS WOULD BE DENOMINATED IN DOLLARS WITH PAYMENTS FUNNELED THROUGH A SPECIALPURPOSE US SUBSIDIARY CRAFTED TO MAKE US INVESTORS FEEL AT EASE WALL STREET OF COURSE HAS ALREADY LEARNED HOW TO MAKE BONDS OUT OF AN ASTONISHING ARRAY OF FUTURE OBLIGATIONS THAT RUN THE GAMUT FROM CREDITCARD BILLS TO TRAILERHOME BOAT AND AUTO LOANS ACCORDING TO INDUSTRY ESTIMATES NEARLY 8 BILLION OF SECURITIES BACKED BY ASSETS AND RECEIVABLES HAVE BEEN SOLD BY LATIN AMERICAN ISSUERS SINCE 1987 WHY NOT MONEY ORDERS TOO SO THOUGHT INAKI DE ABIEGA DIRECTOR OF INTERNATIONAL OPERATIONS OF BANCO MEXICANO A SUBSIDIARY OF MEXICO'S GRUPO FINANCIERO INVERMEXICO AFTER ALL HE WAS LOOKING FOR CHEAPER WAYS FOR THE BANK TO BORROW MONEY AND THE BANK PRIVATIZED IN APRIL 1992 WANTED TO PAY INTEREST RATES LOWER THAN THOSE BEING OFFERED ON LOCALCURRENCY CERTIFICATES OF DEPOSIT IT WANTED TO OFFER A MATURITY OF LONGER THAN A YEAR IT WANTED TO OFFER AN ISSUE DENOMINATED IN DOLLARS ENTER THE MONEY ORDERS WE'VE HAD AN IMPORTANT PENETRATION IN THIS NICHE SAYS MR DE ABIEGA HE FIGURES THAT BANCO MEXICANO CASHES AS MUCH AS 300 MILLION IN MONEY ORDERS EACH YEAR AT ITS 275 BRANCHES IN MEXICO BY TAPPING THE FUTURE CASH FLOWS THAT THE STREET CALLS RECEIVABLES TO MAKE COUPON AND PRINCIPAL PAYMENTS BANCO MEXICANO COULD RAISE CASH NOW BY SELLING BONDS INSTEAD OF WAITING FOR THE MONEY ORDERS TO COME IN AND THERE WOULD BE A LURE FOR INVESTORS UNLIKE MANY OTHER LATIN BONDS THE TEXMEX BONDS WOULD BE DESIGNED TO ELIMINATE BOTH CURRENCY RISK AND COUNTRY RISK FOR US INVESTORS MR DE ABIEGA BROUGHT THE IDEA TO DAIWA SECURITIES AMERICA INC A US UNIT OF JAPAN'S DAIWA SECURITIES CO ALTHOUGH MANY DETAILS REMAIN TO BE IRONED OUT HE HOPES TO SEE ABOUT 60 MILLION OF TEXMEX BONDS SOLD BY YEAR END AT A YIELD ABOUT TWO PERCENTAGE POINTS ABOVE THREEYEAR TREASURY NOTES OR ABOUT 615 AS OF FRIDAY SINCE THE TERMS ARE STILL UNDER DISCUSSION MR DE ABIEGA DOESN'T KNOW IF THE INTEREST RATE WILL BE FIXED OR FLOATING HERE'S HOW THE NEW BONDS MIGHT WORK FIRST SUPPOSE A MEXICAN WORKER GOES TO A BANK OR POST OFFICE IN THE US AND BUYS A MONEY ORDER FOR 100 HE MAILS IT TO HIS WIFE IN PUEBLA MEXICO SHE TAKES IT TO THE LOCAL BRANCH OF BANCO MEXICANO WHICH PAYS HER IN PESOS THAT SHE USES FOR HOUSEHOLD EXPENSES USUALLY BANCO MEXICANO WOULD THEN FORWARD THE MONEY ORDER TO THE US BANK THAT ISSUED IT WHICH WOULD COMPENSATE THE MEXICAN BANK FOR THE FUNDS IT HAD ALREADY PAID OUT TO HONOR THE MONEY ORDER THIS TIME HOWEVER BANCO MEXICANO WILL BE USING THE MONEY ORDERS TO BACK THE TEXMEX BONDS SO THE CASH FLOWS THAT WOULD HAVE GONE BACK TO THE PUEBLA BRANCH INSTEAD WILL GET FORWARDED TO A SPECIALPURPOSE COMPANY SET UP AND MANAGED IN THE US MOST LIKELY FORMED BY DAIWA OR A SUBSIDIARY THE SPECIALPURPOSE COMPANY THEN WOULD SET PART OF THE MONEY FLOWS ASIDE TO MEET IMPENDING COUPON PAYMENTS THIS IS WHERE DAIWA REAPS ITS PAY SINCE ONLY PART OF THE MONEY FLOWS ARE NEEDED IMMEDIATELY TO COVER COUPON AND PRINCIPAL PAYMENTS DAIWA CAN USE THE REST AS IT WISHES ESSENTIALLY GETTING A SHORTTERM INTERESTFREE LOAN DAIWA IS ALSO LIKELY TO MAKE MONEY FROM WHAT IS KNOWN AS THE SERVICE SPREAD A FEE CHARGED BY SUCH SPECIALSERVICE COMPANIES IN SIMILAR DEALS THAT COULD RANGE FROM 1 TO 15 OF ALL THE MONEY FLOWS NEEDED TO PAY BACK BOND INVESTORS BUT SINCE THE BONDS ARE DENOMINATED IN DOLLARS AND PAID IN DOLLARS THERE ISN'T A CURRENCY RISK THAT WOULD BE THE RISK THAT THE MEXICAN PESO WILL RISE OR FALL SHARPLY AND SINCE THE DOLLARS NEVER ACTUALLY LEAVE THE US THE BONDS AREN'T AS VULNERABLE TO POLITICAL INSTABILITY AS A RESULT BANCO MEXICANO MAY BE ABLE TO GET A HIGHER CREDIT RATING PERHAPS EVEN HIGHER THAN THE COUNTRY'S LONGTERM DOLLARDEBT CREDIT RATING OF DOUBLEBPLUS FROM STANDARD & POOR'S CORP EVEN IF THE BONDS DO GET THAT HIGH JUNKBOND RATING MR DE ABIEGA BELIEVES THEY COULD EVENTUALLY BECOME INVESTMENTGRADE IF THE NORTH AMERICAN FREE TRADE AGREEMENT IS APPROVED AND MEXICO'S COUNTRY RATING IS UPGRADED A HIGHER RATING COULD ATTRACT NEW INVESTORS WHO ARE INTERESTED IN HIGHER LATIN YIELDS BUT UNABLE TO BUY BONDS BELOW INVESTMENT GRADE THE INTERESTING PART OF THIS IS THAT YOU DON'T HAVE TO RELY ON ANY INTERNAL EXCHANGE MECHANISM AT THE BANK TO GET DOLLARS OUT SAYS AN ANALYST AT ANOTHER LARGE WALL STREET FIRM WHO ASKED NOT TO BE IDENTIFIED YOU CAN CAPTURE THE DOLLARS BEFORE THEY GO SOUTH THAT'S ONE OF THE GREATEST CONCERNS OF THE RATINGS AGENCIES WHAT WOULD HAPPEN WITH YOUR AVERAGE MEXICAN BOND INVESTMENT IF THE MEXICAN GOVERNMENT LEVIES SOME SORT OF RESTRICTION ON DOLLAR FLOWS OUT OF THE COUNTRY HE ASKED THERE ARE SOME POTENTIAL HITCHES THERE IS THE IRONY OF WHITESHIRTED BANKERS PROFITING FROM THE SWEATY LABORS OF MEXICAN IMMIGRANTS AND THE IMAGE THIS MIGHT CREATE IN THE US FOR A RECENT ARTICLE IN AMERICAECONOMIA A SPANISHLANGUAGE BUSINESS MONTHLY SEVERAL DAIWA SECURITIES EXECUTIVES CROWED ABOUT THE POTENTIAL OF SUCH A SECURITY AND ALLOWED THEIR PICTURES TO BE TAKEN THE WALL STREET JOURNAL'S PARENT COMPANY DOW JONES & CO OWNS APPROXIMATELY 50 OF THE SHARES IN THE MAGAZINE BUT WITH THE POSSIBILITY OF SUCH A TRANSACTION SURFACING IN AN ENGLISHLANGUAGE PUBLICATION DAIWA BECAME SHY ABOUT COMMENTING FOR THE RECORD THERE ARE OTHER DANGERS BECAUSE THERE AREN'T ANY SPECIFIC ASSETS BACKING THE BONDS AS WITH TRAILERHOME LOANS INVESTORS RUN THE RISK OF LOSING THEIR INVESTMENT IF FOR SOME REASON THE CASH FLOWS BACKING THE BONDS DISAPPEAR FOR EXAMPLE MEXICAN IMMIGRANTS MIGHT SEND FEWER MONEY ORDERS FOR BANCO MEXICANO TO CASH THE RISKS AND THE DIFFICULTY OF ASSESSING THEM WORRY MONEY MANAGERS LIKE ROBERT CITRONE OF FIDELITY INVESTMENTS WHO WOULD CARRY THE RISK IF MONEY ORDERS STOP FLOWING INTO THE BANK HE ASKS THOUGH IT SEEMS LIKELY THAT BANCO MEXICANO ITSELF WILL GUARANTEE PAYMENT NOTHING IS ETCHED IN STONE YET IF THE BANK AGREES OR THE SPECIALPURPOSE COMPANY AGREES TO GUARANTEE PAYMENT THEN PERHAPS THE POTENTIAL YIELDS ARE WORTH IT HE SAYS IF INVESTORS ARE STUCK WITH SECURITIES WITH NO RISK PROTECTION THEN THE POTENTIAL YIELDS MIGHT NOT JUSTIFY THE RISK HE SAYS ANOTHER LOGICAL MARKET FOR THE NEW BONDS WOULD BE JAPAN WITH ITS LARGE DOLLAR SURPLUS THE JAPANESE NEED TO KEEP REINVESTING IN DOLLARDENOMINATED SECURITIES JAPANESE INVESTORS ALSO LIKE EMERGING MARKETS LIKE MEXICO UNLIKE DEBT PAPER FROM OTHER DEVELOPING NATIONS THE TEXMEX BONDS MAY ACTUALLY BE A SAFER INVESTMENT IF THE MEXICAN ECONOMY FOUNDERS MORE MEXICANS LEAVING THE COUNTRY TO MAKE THEIR LIVELIHOOD WOULD MEAN A LARGER FLOW OF MONEY ORDERS COMING BACK TO BANCO MEXICANO BRANCHES TREASURY NOTES AND BONDS ENDED A SEESAW SESSION NARROWLY MIXED ON FRIDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1\4 POINT OR LESS THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 102 25/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 604 FROM 603 ON THURSDAY THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT TO 102 23/32 TO YIELD 538 DOWN FROM 539 PRICES BEGAN THE DAY HEADING LOWER PRESSSURED BY FOLLOWTHROUGH SELLING FROM THURSDAY'S DOWNDRAFT BUT THE MARKET BEGAN TO RECOVER AT MIDMORNING HELPED BY THE APPEARANCE OF SOLID BUYING OF SHORT AND INTERMEDIATE SECURITIES THAT BIDDING HELPED DRAG THE ENTIRE MARKET HIGHER THROUGH MIDDAY EVENTUALLY TRIGGERING A BURST OF TECHNICALLY DRIVEN BUYING OF LONG BONDS THAT TOOK THE MARKET TO ITS HIGHS THERE WAS SOME PRETTY GOOD BUYING STARTING ABOUT 1030 IN THE MORNING SAID CARY LEAHEY AN ECONOMIST AT LEHMAN GOVERNMENT SECURITIES BUT YOU CAN'T POINT TO ANY PARTICULAR EVENT THAT SPARKED IT PROVIDING SOME HELP TO THE MARKET WAS NEWS THAT THE UNIVERSITY OF MICHIGAN'S CONSUMER SENTIMENT INDEX WAS SAID TO HAVE RISEN TO 774 IN EARLY SEPTEMBER FROM 773 IN AUGUST A SMALLERTHANEXPECTED INCREASE THE REPORT IS ONLY RELEASED TO SUBSCRIBERS OVERALL TRADERS DESCRIBED THE MARKET'S MOVEMENTS AS RANGE TRADING 9309200018 930920 ABREAST OF THE MARKET SUBDUED THIRDQUARTER RESULTS ARE EXPECTED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL COUNTING ON STRONG THIRDQUARTER EARNINGS TO PROPEL THE STOCK MARKET HIGHER IN THE COMING MONTHS BETTER LOWER YOUR SIGHTS A LITTLE ANALYSTS SAY EARNINGS FOR THE THIRD QUARTER MAY NOT BE STRONG ENOUGH TO PROVIDE MUCH LIFT TO STOCK PRICES ALREADY EARNINGS ESTIMATES ARE BEING SLASHED TO REFLECT MORE SUBDUED PROFIT EXPECTATIONS FOR THE QUARTER EARNINGS ARE BECOMING INCREASINGLY IMPORTANT AS THE FEELING GROWS THAT INTEREST RATES MAY HAVE BOTTOMED AND AS THE STOCK MARKET LOOKS INCREASINGLY EXPENSIVE SAYS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO THAT CREATES A LITTLE VULNERABILITY BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH SAYS WALL STREET SECURITIES ANALYSTS ARE LOOKING FOR THE COMPANIES IN THE STANDARD & POOR'S 500STOCK INDEX TO TURN IN THIRDQUARTER EARNINGS FROM CONTINUING OPERATIONS ABOUT 21 HIGHER THAN THE YEARAGO QUARTER THAT'S DOWN FROM ESTIMATES OF 28 WHEN THE QUARTER BEGAN WHILE 21 GROWTH SOUNDS FAIRLY RESPECTABLE ANALYSTS NOTE THAT IT REALLY ISN'T VERY IMPRESSIVE CONSIDERING THAT LAST YEAR'S THIRD QUARTER WAS HIT HARD BY HURRICANE ANDREW AND DON'T EXPECT THAT 21 ESTIMATE TO HOLD AS THE REPORTING SEASON GETS UNDER WAY THERE WILL ALMOST CERTAINLY BE FURTHER EROSION IN THE ESTIMATES MR ZACKS SAYS THAT DURING THE PAST MONTH 72 OF ANALYSTS' EARNINGS REVISIONS PRODUCED LOWER ESTIMATES WHILE JUST 28 RESULTED IN HIGHER PROJECTIONS THERE'S NO EARNINGS EXCITEMENT TO PUSH INVESTORS TO BE MORE AGGRESSIVE IN THE STOCK MARKET SAYS COWEN'S MR RESNICK THE PERSISTENT ECONOMIC SLUGGISHNESS IN THE US AND ABROAD CONTINUES TO WEIGH ON CORPORATE AMERICA'S BOTTOM LINE BUT OTHER FACTORS ARE COMING INTO PLAY IN THE THIRD QUARTER RICHARD PUCCI SENIOR VICE PRESIDENT OF I/B/E/S A SERVICE THAT MONITORS ANALYSTS' EARNINGS ESTIMATES NOTES THAT THE NEW CORPORATE TAX LAW COMES INTO EFFECT IN THE THIRD QUARTER THE LAW WHICH RAISES THE CORPORATE TAX RATE TO 35 FROM 34 RETROACTIVELY TO THE START OF THE YEAR WILL HURT EARNINGS BECAUSE THE ADDITIONAL TAX BURDEN WILL BE CHARGED AGAINST THIRDQUARTER RESULTS ALSO IN THE THIRD QUARTER ANALYSTS BEGIN TO COME TO GRIPS WITH REALITY EARLY IN THE YEAR THEY INVARIABLY ISSUE STRONG EARNINGS PROJECTIONS IN THE BELIEF THAT COMPANIES HAVE TIME TO INTRODUCE PRODUCTS OR STRATEGIES TO BOLSTER PROFITS SIGNIFICANTLY BUT BY THE THIRD QUARTER TIME IS RUNNING OUT AND THE FORECASTS MUST BE SLASHED THAT EXPLAINS WHY EARNINGS REVISIONS IN THE THIRD QUARTER PRODUCE MORE LOWER FORECASTS THAN HIGHER ONES A LOT OF PEOPLE THINK ANALYSTS PUT OUT ESTIMATES THAT ARE TOO HIGH JUST TO SELL STOCK I DON'T THINK THAT'S THE CASE SAYS MR PUCCI ANALYSTS ARE AN OPTIMISTIC BREED THEY ALWAYS THINK COMPANIES WILL MAKE IMPROVEMENTS BUT BY THIS TIME OF YEAR THERE ARE FEWER PAGES IN THE CALENDAR TO TURN STILL SOME INDUSTRY GROUPS ARE EXPECTED TO TURN IN STRONG EARNINGS PERFORMANCES ESPECIALLY THOSE THAT HAVE UNDERGONE LARGE RESTRUCTURINGS MR PUCCI EXPECTS AUTO MAKERS TO SHOW ONE OF THE LARGEST TURNAROUNDS REPORTING EARNINGS OF 73 MILLION FOR THE THIRD QUARTER A VAST IMPROVEMENT FROM THE INDUSTRY'S 965 MILLION LOSS FOR THE 1992 THIRD QUARTER AIRLINES ARE EXPECTED TO EARN 375 MILLION COMPARED WITH A LOSS OF 268 MILLION AND STEEL MAKERS ARE PREDICTED TO EARN 177 MILLION AFTER A LOSS OF 133 MILLION FINANCIAL COMPANIES ALSO ARE SEEN REPORTING STRONG EARNINGS BECAUSE OF FAVORABLE SPREADS ON INTEREST RATES FOR INSTANCE MR PUCCI PREDICTS THAT THE EARNINGS OF SAVINGS AND LOANS WILL MORE THAN DOUBLE IN THE QUARTER WHILE BANKS' EARNINGS WILL INCREASE 26 BUT THE BENEFIT TO THE FINANCIAL COMPANIES' STOCK PRICES MAY BE MINIMAL SAYS MR RESNICK OF COWEN PEOPLE ALREADY HAVE ANTICIPATED BETTER EARNINGS FOR FINANCIAL COMPANIES BY DRIVING THE STOCKS UP IN THE LAST MONTH HE SAYS UNLESS THE EARNINGS SURPRISES ARE ENORMOUS THE STOCK MARKET MAY SHRUG THEM OFF WEAK COMMODITIES PRICES ARE EXPECTED TO DRAG DOWN EARNINGS OF METAL COMPANIES MR PUCCI ESTIMATES THAT THE METALS INDUSTRY WILL POST A 97 DECLINE IN PROFITS FOR THE QUARTER TOBACCO COMPANIES ALSO ARE SUFFERING FROM PRICING PROBLEMS OF THEIR OWN AND ARE FORECAST TO REPORT A 21 DROP IN EARNINGS NEW PRESSURES ON THE DRUG MAKERS WILL BE REFLECTED IN THAT GROUP'S PROFITS THE GROUP IS EXPECTED TO REPORT EARNINGS GROWTH OF ABOUT 3 COMPARED WITH ITS USUAL LEVEL OF 15 TO 17 MR RESNICK SAYS THAT WHILE HE EXPECTS THE EARNINGS PICTURE TO WEAKEN A BIT HE DOESN'T SEE CATASTROPHY AHEAD SOMETIME NEXT YEAR PERHAPS IN THE SECOND HALF EARNINGS WILL BEGIN TO PICK UP AGAIN AS THE GLOBAL ECONOMY IMPROVES AND COMPANIES ARE ABLE TO RAISE PRICES MODESTLY WE'RE JUST IN A PERIOD OF DECELERATION IN EARNINGS MOMENTUM WHICH WILL CONTINUE FOR A WHILE HE SAYS UNTIL EARNINGS AND THE ECONOMY SHOW SOME BETTER SPARKLE THE STOCK MARKET MAY LANGUISH SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH WE'RE IN A CONSOLIDATION PHASE THAT WILL CONTINUE IN THE WEEKS AHEAD MR SOLLOWAY SAYS HE PREDICTS THAT THE DOW JONES INDUSTRIALS WILL SINK TOWARD THE 3500 LEVEL AND THEN TRADE IN A RANGE OF 3525 TO 3575 BUT MR SOLLOWAY REMAINS UPBEAT ABOUT STOCKS IN THE LONGER TERM AFTER THE CONSOLIDATION PERIOD HE SEES STOCK PRICES CLIMBING AGAIN AS ECONOMIC CONDITIONS IMPROVE AND CONSUMERS START SPENDING MORE OVER THE NEXT YEAR THE DOW JONES INDUSTRIALS ARE CAPABLE OF PUSHING UP ANOTHER 10 TO 3800 HE SAYS I DON'T THINK THE BULL MARKET IN STOCKS IS OVER THAT WON'T HAPPEN UNTIL YOU HAVE A SUBSTANTIAL RISE IN RATES AND THERE'S VERY LITTLE INDICATION OF ANY MAJOR RISE OVER THE NEXT SEVERAL MONTHS STOCK PRICES SLID IN THE HEAVIEST TRADING IN NINE MONTHS THE DOW JONES INDUSTRIAL AVERAGE FELL 1760 POINTS TO 361325 STANDARD & POOR'S 500STOCK INDEX LOST 060 TO 45883 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 028 TO 25466 THE NASDAQ COMPOSITE INDEX EDGED UP 031 TO 74011 IN THE WEEK THE DOW JONES INDUSTRIALS SLIPPED 838 POINTS OR 023 AND THE S&P 500 DECLINED 289 OR 063 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 127 OR 050 WORLDWIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 028 TO 11204 ANALYSTS SAID PRICES FELL BECAUSE OF INVESTORS' CONCERNS ABOUT CORPORATE PROFITS AND BECAUSE OF TRADING LINKED TO THE QUARTERLY EXPIRATION OF STOCK INDEX FUTURES THE EXPIRATIONS SET A NEGATIVE TONE IN EARLY TRADING SELL ORDERS SWAMPED THE BIG BOARD AT THE OPEN AS INVESTORS UNWOUND FUTURESRELATED POSITIONS MORE THAN 40 OF THE DAY'S TOTAL VOLUME TOOK PLACE IN THE FIRST 30 MINUTES OF TRADING WHEN NEARLY 159 MILLION SHARES TRADED HANDS FOR THE BUSIEST FIRST HALF HOUR EVER ON THE EXCHANGE THE DOW JONES INDUSTRIAL AVERAGE WAS DEPRESSED BY DECLINES IN EASTMAN KODAK WHICH FELL 1 7/8 TO 59 7/8 AND WESTINGHOUSE WHICH DROPPED 1 1/8 TO 13 3/4 EASTMAN KODAK SLUMPED AFTER THE ROCHESTER NY PHOTOGRAPHIC SUPPLIES AND CHEMICAL COMPANY SAID THIRDQUARTER NET INCOME MIGHT NOT MATCH THE 101 A SHARE IT EARNED A YEAR EARLIER ATTAINING THAT LEVEL IT SAID WILL BE A CHALLENGE WESTINGHOUSE SLID AFTER IT PREDICTED THIRDQUARTER EARNINGS FROM CONTINUING OPERATIONS WILL LIKELY BE DOWN 50 FROM THE 22 CENTS IT POSTED A YEAR EARLIER ALTHOUGH THE PITTSBURGH ELECTRICAL MANUFATURER EXPECTS A STRONG FOURTH QUARTER IT FORECAST A 10 TO 20 DROP IN OPERATING RESULTS FOR THE FULL YEAR PARAMOUNT COMMUNICATIONS JUMPED 3 1/2 TO 68 1/2 TURNER BROADCASTING IS SAID TO BE CONSIDERING A BID TO ACQUIRE THE GIANT NEW YORK ENTERTAINMENT COMPANY QVC NETWORK IS ALSO SAID TO BE MULLING AN OFFER PARAMOUNT ALREADY HAS AGREED TO BE ACQUIRED BY VIACOM FOR 77 BILLION IN CASH AND STOCK TURNER'S CLASS A SHARES LOST 5/8 TO 25 3/4 WHILE VIACOM FELL 1 1/8 TO 59 7/8 BOTH IN TRADING ON THE AMERICAN STOCK EXCHANGE QVC NETWORK SLID 1 TO 59 1/2 ON NASDAQ U S WEST GAINED 2 1/8 TO 48 1/2 AFTER THE ENGLEWOOD COLO TELEPHONE SERVICE PROVIDER SAID IT PLANS TO ELIMINATE 9000 JOBS IN THE NEXT THREE YEARS PAINEWEBBER ANALYST JACK GRUBMAN RAISED AN INVESTMENT RATING ON THE STOCK TO BUY FROM NEUTRAL GENERAL MOTORS LOST 1 1/8 TO 45 3/4 THE WALL STREET JOURNAL REPORTED FRIDAY THAT A LABOR AGREEMENT FORD MOTOR REACHED LAST WEEK WITH THE UNITED AUTO WORKERS REPRESENTS A SETBACK FOR GM THE PACT MIGHT HAMPER THE NO 1 AUTO MAKER'S STATED GOAL OF CUTTING LABOR COSTS TO MAKE ITS US VEHICLE OPERATIONS COMPETITIVE FORD SHARES ROSE 1/4 TO 54 3/4 CHRYSLER WAS UNCHANGED AT 44 7/8 VALLEY BANCORP LOST 2 TO 35 3/4 IN NASDAQ TRADING AFTER SURGING 5 THURSDAY AFTER THE MARKET CLOSED THURSDAY THE APPLETON WIS BANK AND THRIFT COMPANY SAID IT WAS IN TALKS REGARDING A POSSIBLE BUSINESS COMBINATION FRIDAY PRUDENTIAL SECURITIES DOWNGRADED AN INVESTMENT RATING ON THE STOCK TO SELL FROM HOLD WHIRLPOOL CLIMBED 1 7/8 TO 59 1/8 THE STOCK FELL 3 1/2 THURSDAY AFTER SEVERAL ANALYSTS CUT EARNINGS ESTIMATES AFTER THE CLOSE OF TRADING THURSDAY THE BENTON HARBOR MICH COMPANY REPEATED THAT IT EXPECTS A 20 TO 30 INCREASE IN OPERATING EARNINGS FOR 1993 THE COMPANY SAID FRIDAY THAT THOSE ANALYSTS WHO CUT THEIR ESTIMATES HAD BEEN ON THE HIGH END OF THE ESTIMATE RANGE 9309200017 930920 MANAGER'S JOURNAL NOW THE GOOD NEWS ON HEALTH CARE BY KEN DAVIS FOR SEVERAL YEARS THE MEDIA HAVE REPORTED ONE HORROR STORY AFTER ANOTHER ABOUT THE COST AND DELIVERY OF HEALTH CARE NOW FOR SOMETHING COMPLETELY DIFFERENT SINCE 1989 MY COMPANY'S HEALTH CARE COSTS HAVE RISEN LESS THAN 1 A YEAR DURING THAT TIME WE HAVE IMPROVED AND EXPANDED OUR MEDICAL BENEFITS PROGRAM IN 1992 WE UNDERRAN OUR HEALTHCARE BUDGET BY 31 WE SHARED THESE SAVINGS WITH OUR EMPLOYEES IN MAY BY DISTRIBUTING CHECKS TOTALING MORE THAN 67000 WE HAVE EXPANDED COVERAGE FOR PREVENTIVE AND DIAGNOSTIC PROCEDURES WE HAVE ESTABLISHED A CASH INCENTIVE PROGRAM TO REWARD OUR EMPLOYEES WHO ADOPT AND MAINTAIN HEALTHY LIFESTYLES WE HAVE TAKEN A NUMBER OF STEPS TO HELP OUR EMPLOYEES BECOME INFORMED AND EMPOWERED CONSUMERS OF MEDICAL SERVICES WE HAVE RESTRUCTURED OUR BENEFITS PROGRAMS TO MAKE IT EASIER FOR EMPLOYEES TO CUSTOM TAILOR A PACKAGE OF BENEFITS THAT BEST MEETS THEIR NEEDS FOR THE LEAST COST AND WE HAVE PRESERVED FOR EMPLOYEES THE FREEDOM TO MAKE THEIR OWN CHOICES WHEN SELECTING A DOCTOR HOSPITAL OR OTHER PROVIDER OF MEDICAL CARE THERE ARE THREE REASONS FOR THE RESULTS WE HAVE ACHIEVED FIRST WE HAVE FOCUSED ON HEALTH MAINTENANCE AND PREVENTION SECOND WE HAVE TREATED HEALTH INSURANCE LIKE TRUE INSURANCE THIRD WE HAVE BEGUN TO TREAT COMPANYPROVIDED BENEFITS LIKE A FORM OF COMPENSATION WHICH THEY ARE AND LESS LIKE A PROGRAM OF ENTITLEMENTS IN A TYPICAL WORKINGAGE POPULATION ABOUT ONETHIRD OF MEDICAL COSTS ARISE FROM FIVE FAMILIAR RISK FACTORS WEIGHT BLOOD PRESSURE CHOLESTEROL SMOKING AND SEATBELT USE TO A LARGE DEGREE THESE RISK FACTORS CAN BE CONTROLLED BY PERSONAL BEHAVIOR WE TRY TO ENCOURAGE OUR EMPLOYEES AND THEIR FAMILIES TO FOCUS ON AND ACT ON THESE ISSUES WITHOUT DELAY WE DO THIS BY OFFERING THEM WELLNESS INCENTIVES OF UP TO 600 A YEAR IF THEIR FIVE RISK FACTORS CAN BE RATED AS LOW RISK USING TRADITIONAL INSURANCEINDUSTRY RATING TABLES MORE THAN 60 OF OUR EMPLOYEES PARTICIPATE IN OUR VOLUNTARY WELLNESS PROGRAM THEY APPRECIATE OUR CONCERN FOR THEIR HEALTH AND THEY APPRECIATE OUR CONCERN FOR THEIR PRIVACY MEDICAL DATA USED TO ASSESS RISK SUCH AS BLOOD PRESSURE READINGS ARE KEPT STRICTLY CONFIDENTIAL BY THE OUTSIDE CONTRACTORS WHO ADMINISTER THE PROGRAM IN ADDITION NO INCENTIVE PAYMENTS ARE WITHHELD FROM INDIVIDUALS BECAUSE OF ANY RISKFACTOR CONDITIONS BEYOND THEIR CONTROL IN TACKLING THE MORE FUNDAMENTAL ISSUE OF THE COST OF INSURANCE WE HAVE GONE BACK TO BASICS MOST HEALTH INSURANCE PROGRAMS USE ADMINISTRATIVE SYSTEMS BORROWED FROM THE PROPERTY AND CASUALTY INSURANCE INDUSTRY TO RUN ENTITLEMENT PROGRAMS THAT PAY FOR ROUTINE MEDICAL EXPENDITURES CONSIDER AUTO INSURANCE AS A COMMON EXAMPLE OF PROPERTY AND CASUALTY INSURANCE IF IT WERE RUN LIKE MOST HEALTH PROGRAMS OUR COMPANY WOULD PAY FOR THINGS LIKE SPARK PLUGS AND MOTOR OIL AND THE PRICE OF THESE ITEMS WOULD SKYROCKET UNINSURED INDIVIDUALS WOULD NOT BE ABLE TO AFFORD GOOD CAR CARE AND EMPLOYERS WOULD BE WORKING WITH THEIR CARRIERS TO NEGOTIATE VOLUME DISCOUNTS WITH NETWORKS OF PREFERRED GARAGES IT IS MORE COSTEFFECTIVE FOR INSURANCE COMPANIES TO PAY A SMALL NUMBER OF LARGE CLAIMS THAN TO PAY A LARGE NUMBER OF SMALL CLAIMS IF AN INSURER RECEIVES MANY SMALL CLAIMS IT ADDS UP TO MOUNTAINS OF PAPERWORK AND THAT TAKES A HUGE STAFF WHICH COSTS A LOT OF MONEY THE PAYER MUST ALSO CONFIRM THAT THE SERVICE RENDERED WAS COVERED AND THAT THE CHARGE BILLED WAS APPROPRIATE EACH OF THESE NECESSARY STEPS ADDS ADMINISTRATIVE EXPENSES HOWEVER IF YOU HAVE A FEW LARGE CLAIMS YOU DON'T NEED THE EXTRA PAPERWORK OR THE STAFF THUS AT MY COMPANY WE FOCUS COVERAGE ON THE SIGNIFICANT EXPENSES THAT CAN LOGICALLY AND EFFICIENTLY BE REIMBURSED BY INSURANCE BY RAISING PLAN DEDUCTIBLES WE HAVE GREATLY REDUCED THE PREMIUMS THAT OUR COMPANY AND EMPLOYEES HAVE TO PAY WE OFFER OUR EMPLOYEES A MEDICAL INSURANCE PLAN THAT INCLUDES A DEDUCTIBLE OF 1500 A YEAR FOR INDIVIDUAL COVERAGE AND 3000 A YEAR FOR FAMILY COVERAGE SEVENTYFIVE PERCENT OF OUR EMPLOYEES HAVE SELECTED THIS HIGH DEDUCTIBLE LOW PREMIUM PLAN I HAVE ELECTED TO COVER MYSELF AND MY FAMILY WITH THIS PLAN AND PAY ABOUT 110 A MONTH FOR OUR COVERAGE THE SIGNIFICANT MONEY SAVED ON PREMIUMS IS AVAILABLE TO ME AND OTHER EMPLOYEES TO PAY FOR ROUTINE MEDICAL EXPENSES THROUGH OTHER MORE DIRECT AND EFFICIENT MEANS SUCH AS BY CASH CHECK OR CREDIT CARD IF SMALL CLAIMS ARE PAID OUT OF POCKET BY THE EMPLOYEE THE NUMBER OF CLAIMS PLUMMETS AND THE INSUREE BECOMES A BETTER RISK FOR THE INSURER IN FACT HERE AT DOMINION CLAIMS FILED PER EMPLOYEE CAME DOWN TO 10 IN 1992 FROM 19 IN 1991 SINCE THIS MEANS FAR LESS WORK IN ADMINISTERING CLAIMS WE'RE RENEGOTIATING NEXT YEAR'S ADMINISTRATIVE FEE WITH BLUE CROSS TO ENCOURAGE DIRECT PAYMENT OF SMALL MEDICAL BILLS MY COMPANY HAS ESTABLISHED PAYROLL DEDUCTION SAVINGS ACCOUNTS AT A LOCAL BANK FOR EMPLOYEES TO ACCUMULATE MONEY THAT OTHERWISE WOULD BE SPENT ON MEDICAL PREMIUMS THESE MEDICAL SAVINGS ACCOUNTS PAY INTEREST AND THEY ACCUMULATE FUNDS FOR PARTICIPATING EMPLOYEES ON AN AFTERTAX FULLY VESTED BASIS FUNDS NOT SPENT IN A CURRENT YEAR ARE CARRIED FORWARD TO LATER YEARS FOR EMPLOYEES ON A USE IT OR KEEP IT BASIS THE COMBINATION OF HIGH INSURANCE DEDUCTIBLES AND MEDICAL SAVINGS ACCOUNTS CONTROLS THE COST AND IMPROVES THE QUALITY OF OUR HEALTH CARE BY ELIMINATING THE WASTEFUL USE IT OR LOSE IT INCENTIVES CREATED BY TRADITIONAL MEDICAL PLANS THAT PAY FOR THE MOST ROUTINE MEDICAL SERVICES BY FOCUSING OUR INSURANCE COVERAGE ON MORE SIGNIFICANT CASES MY COMPANY HAS GREATLY REDUCED THE NEED TO MANAGE THE HEALTH CARE OF OUR EMPLOYEES OR TO INTERVENE IN THE RELATIONSHIPS THEY HAVE WITH THEIR DOCTORS THE FINAL LEG OF OUR SUCCESSFUL HEALTH PLAN PACKAGE IS OUR TREATMENT OF MEDICAL BENEFITS AS A FORM OF COMPENSATION COMPENSATION SHOULD BE BASED ON THE CONTRIBUTION THAT AN EMPLOYEE MAKES TO THE SUCCESS OF HIS COMPANY OUR WELLNESS INCENTIVE PAYMENTS ARE BASED ON THE COSTCONTROL CONTRIBUTIONS THAT EMPLOYEES MAKE WHEN THEY RESPONSIBLY MANAGE THE RISK FACTORS THAT AFFECT THEIR HEALTH AND THE REFUND PAYMENTS WE MADE THIS YEAR WHEN WE CAME IN UNDER OUR HEALTHCARE BUDGET REWARDED EMPLOYEES FOR THEIR PRUDENT CONSUMPTION OF MEDICAL SERVICES WE EVEN PAY SOME EXTRA MONEY FOR MEDICAL BENEFITS TO EMPLOYEES WHO EARN OUR HIGHEST APPRAISAL RATING FOR THEIR SUPERIOR JOB PERFORMANCE AND THEIR CONTRIBUTION TO THE SUCCESS OF OUR COMPANY AND TO STRESS THE POINT THAT BENEFITS ARE COMPENSATION WE PROVIDE TOTAL COMPENSATION STATEMENTS TO EMPLOYEES EACH YEAR TO SHOW THEM HOW MUCH THEY ARE PAID IN CASH AND HOW MUCH THEY ARE PAID IN COMPANY EXPENDITURES FOR THEIR BENEFITS REFORM OF HEALTH BENEFITS CAN BE A WINWIN SITUATION FOR EVERYBODY CONCERNED IT HAS BEEN FOR US MR DAVIS IS A VICE PRESIDENT OF DOMINION RESOURCES INC AN ELECTRIC UTILITY HOLDING COMPANY BASED IN RICHMOND VA HE IS RESPONSIBLE FOR THE BENEFIT PROGRAMS THAT COVER 185 EMPLOYEES