NEW YORK IN A BID TO SLASH COSTS AND BEEF UP LAGGING AD SALES TIME INC IS LAUNCHING ANOTHER DRAMATIC RESTRUCTURING OF ITS OPERATIONS THE RESTRUCTURING PRESENTED INTERNALLY FRIDAY WILL PRIMARILY AFFECT THE 30PLUS MAGAZINES THAT ACCOUNT FOR TWOTHIRDS OF TIME'S 3 BILLION IN REVENUE BUT WILL ALSO AFFECT ITS BOOK OPERATIONS INCLUDING WARNER BOOKS AND LITTLE BROWN & CO WHILE OPERATING PROFIT AT THE TIME WARNER INC PUBLISHING SUBSIDIARY ROSE 22 FOR THE FIRST HALF ADVERTISING SALES AT THE MAGAZINE DIVISION HAVE LAGGED BEHIND THE REST OF THE INDUSTRY MOST ALARMING THE STEEPEST DECLINES HAVE BEEN AT CORE TITLES SUCH AS LIFE SPORTS ILLUSTRATED AND TIME THE OVERHAUL COVERS EVERYTHING FROM ELIMINATING THE EXECUTIVE DINING ROOM TO DECENTRALIZING THE MAGAZINE ADVERTISING SALES STAFF WHICH WAS CENTRALIZED JUST TWO YEARS AGO DURING ANOTHER PAINFUL RESTRUCTURING IN 1991 TIME CUT 605 JOBS AND TOOK A 60 MILLION PRETAX CHARGE FOR THE RESTRUCTURING THE CURRENT PLAN WAS DESIGNED WITH AID FROM MCKINSEY & CO THE MANAGEMENT CONSULTING FIRM THAT HAS DONE SIMILAR STUDIES FOR TIME THIS IS A FUNDAMENTAL SHIFT TO BECOME A LEAN AND ENTREPRENEURIAL COMPANY SAID REGINALD K BRACK JR TIME INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOUGH NO ACROSSTHEBOARD REDUCTION IN THE WORK FORCE OF 10000 WAS ANNOUNCED COMPANY STAFFERS ON BOTH THE BUSINESS AND EDITORIAL SIDE ARE EXPECTING ANOTHER ROUND OF JOB CUTS THE COMPANY IS SETTING TOUGH DOUBLEDIGIT TARGETS FOR PROFIT GROWTH AND LEAVING MANAGERS TO REACH THEM IN THEIR OWN WAY ONE COMPANY EXECUTIVE SAID THE AIM IS TO BOOST OPERATING PROFIT BY 150 MILLION OVER THE NEXT THREE YEARS THIS YEAR PROFIT BEFORE DEPRECIATION AND AMORTIZATION IS EXPECTED TO BE ABOUT 363 MILLION ON REVENUE OF ABOUT 33 BILLION GOALS FOR 1996 INCLUDE OPERATING PROFIT OF ABOUT 515 MILLION AND REVENUE OF 4 BILLION THE EXECUTIVE SAID TO REACH THOSE TARGETS PROFIT MARGINS WOULD HAVE TO RISE TO ABOUT 13 FROM 11 THE EXECUTIVE SAID A TIME SPOKESMAN DECLINED TO COMMENT ON THE FIGURES AND COMPANY OFFICIALS SAID SPECIFIC DIVISIONS' GOALS HAVEN'T BEEN ANNOUNCED YET THERE WAS A BLUNT STATEMENT THAT WE EXPECT STAFF REDUCTIONS ALONG THE WAY SAYS DON LOGAN PRESIDENT AND CHIEF OPERATING OFFICER OF TIME INC BUT I TRULY BELIEVE THAT IN FIVE YEARS WE'LL HAVE MORE EMPLOYEES THAN WE HAVE NOW BECAUSE ALL THESE SMART PEOPLE ARE GOING TO CREATE A HOST OF NEW REVENUE STREAMS MR LOGAN IS CONSIDERED THE PRIMARY MOVER BEHIND THE RESTRUCTURING PRIOR TO BEING TAPPED FOR HIS PRESENT POST BY MR BRACK LAST YEAR HE OVERSAW TIME'S SUCCESSFUL SOUTHERN PROGRESS CORP WHICH PUBLISHES SUCH REGIONAL MAGAZINES AS SOUTHERN LIVING WHAT WE'RE DOING IS VERY SIMPLE MR LOGAN SAID FRIDAY IT'S JUST A LOT OF NUTS AND BOLTS CHANGES GETTING PEOPLE TO FOCUS ON THE THINGS THAT COUNT PART OF THE PLAN IS A STEPPEDUP CONCENTRATION ON EXPLOITING THE PUBLISHING PROPERTIES FOR OTHER MEDIA A NEW MULTIMEDIA DIVISION WAS ANNOUNCED AND THE HEAD OF TIME INC VENTURES ROBERT MILLER WAS NAMED PRESIDENT OF TELEVISION FOR TIME INC FUZZY JARGON MESSRS BRACK AND LOGAN PRESENTED THE PLAN TO DEPARTMENT HEADS AND SOME ADVERTISERS LAST WEEK AND PREPARED A BROCHURE FOR EMPLOYEES ENTITLED THE REINVENTING OF TIME INC WHY WE'RE DOING IT ITS IMPACT ON YOU BUT THE BROCHURE WAS SHORT ON DETAILS AND LONG ON FUZZY JARGON SUCH AS REENGINEERING TO SERVE CUSTOMERS BETTER THOUGH THE BROCHURE SAYS NO MAJOR CHANGES IN EDITORIAL DIRECTION ARE PLANNED EDITORIAL STAFFERS SAY THEY ARE NERVOUS ABOUT SUCH EDICTS AS PRODUCING THE BEST MAGAZINES POSSIBLE IN THE MOST EFFICIENT WAY ON THE SALES FRONT MR LOGAN IS DOING AWAY WITH A SYSTEM OF REGIONAL AD SALESPEOPLE WHOSE MISSION HAS BEEN TO SELL ADVERTISERS PACKAGE DEALS OF ADS IN MULTIPLE TIME MAGAZINES THE SYSTEM WAS INSTITUTED AT A TIME WHEN PACKAGING WAS SEEN BY MANY PUBLISHERS WITH MULTIPLE TITLES AS A PANACEA FOR THE SOFT AD CLIMATE BUT THE STRATEGY HASN'T WORKED AND NOW MOST OF THE SALES STAFF WILL GO BACK TO THE PREVIOUS SYSTEM OF REPRESENTING A SINGLE MAGAZINE IN ADDITION LAYERS OF AD MANAGERS WILL BE CUT AND PAY FOR AD SALESPEOPLE WILL BE TIED MORE CLOSELY TO PERFORMANCE THE TOP MANAGEMENT AT THE MAGAZINES WILL ALSO BE FOCUSED MORE PURELY ON ADVERTISING THE PUBLISHERS AT TIME SPORTS ILLUSTRATED AND PEOPLE HAVE BEEN PROMOTED TO THE NEW POST OF PRESIDENT THEIR REPLACEMENTS AS PUBLISHERS ARE ALL VETERAN AD SALES MANAGERS WHOSE SOLE FOCUS WILL BE COURTING ADVERTISERS TIME HAS LONG BEEN UNUSUAL IN FREQUENTLY NAMING PUBLISHERS WITHOUT AD SALES BACKGROUNDS ALL OF THE OTHER DUTIES FORMERLY PERFORMED BY PUBLISHERS INCLUDING CIRCULATION PROMOTION AND BUSINESS DEVELOPMENT WILL BE CARRIED OUT BY THE NEW PRESIDENTS LISA VALK LONG WHO WAS NAMED PRESIDENT OF TIME MAGAZINE AFTER TWO YEARS AS PUBLISHER SAID SHE IS VERY HAPPY WITH THE CHANGES I NOW HAVE A PUBLISHER WHOSE ENTIRE JOB IS TO MAKE IT EASIER FOR PEOPLE TO BUY ADS IN TIME MAGAZINE WHILE I CAN DO THINGS LIKE DEVELOP NEW VENTURES SHE SAID SHE ALSO APPLAUDED THE PLAN FOR GIVING MANAGERS NEW LEEWAY IN HOW THEY MANAGE THERE WERE ALL THESE TIME INC CORPORATE EDICTS ABOUT HOW MUCH PEOPLE COULD BE PAID AND IT HAD TO BE UNIFORM ACROSS DIVISIONS NOW I CAN DESIGN WHATEVER COMPENSATION SYSTEM I WANT TO MOTIVATE PEOPLE THE LAST THING WE WANT IS FOR OUR BIGNESS TO BE A DISADVANTAGE AND THE WHOLE POINT OF THIS CHANGE IS TO LEVERAGE THE STRENGTH OF OUR BIGNESS THROUGH DECENTRALIZATION MARTIN WALKER A MAGAZINE CONSULTANT SAID OF THE PLAN IT'S ABOUT TIME THEY WOKE UP AND CAME INTO THE '90S THIS IS CERTAINLY AN ADMISSION THAT THEY TOTALLY MISSED THE BOAT IN SETTING UP A CENTRAL SALES ORGANIZATION TWO YEARS AGO AND SAYING THAT BIG CORPORATE SALES WOULD BE THE WAVE OF THE FUTURE BUT HE WONDERED WILL TIME'S POLITICS HIERARCHY AND INERTIA PREVENT THE PLAN FROM WORKING IN THE CASE OF TIME MAGAZINE FOR ONE IF THEY CAN'T BOOST CIRCULATION IF THEY CAN'T KEEP THE PRODUCT IN DEMAND IT WON'T MATTER WHAT KIND OF AD SALES STRUCTURE THEY HAVE ADDED WALTER STAAB PRESIDENT OF SFM MEDIA CORP WHICH HANDLES MEDIABUYING FOR ADVERTISERS THERE WERE JUST TOO MANY LAYERS AT TIME THIS CHANGE WILL BE PAINFUL BUT I THINK IT'S A WINNER THE MAGAZINES ARE VIABLE BUT THEY NEED MORE ADVERTISING THIS PLAN FOCUSES THEM ON ADVERTISING TO HEAD ITS NEW TIME INC MULTIMEDIA UNIT TIME TAPPED CURTIS G VIEBRANZ 40 YEARS OLD WHO HAS BEEN PRESIDENT OF TIME INC EUROPE AND PREVIOUSLY RAN VIDEO DISTRIBUTION OPERATIONS AT TIME WARNER'S HOME BOX OFFICE UNIT KELSO SUTTON 54 WHO RECENTLY DIRECTED MULTIMEDIA ACTIVITIES WILL RETIRE AT THE END OF THIS YEAR THE COMPANY SAID MR VIEBRANZ SAID HE WILL LOOK FOR NEW OPPORTUNITIES BUT ADDED I DON'T HAVE A BLANK CHECKBOOK I'VE BEEN TOLD TO PICK IDEAS WE CAN MAKE MONEY ON 9309200015 930920 REVIEW & OUTLOOK EDITORIAL A PIECE OF THE ACTION CAN CALIFORNIA COME BACK THE CHAPTERS IN THAT SERIAL DRAMA ARE NOW BEING WRITTEN THE STATE'S LEGISLATURE JUST WOUND UP ITS SESSION BY CUTTING SOME BUSINESS TAXES INCLUDING A FORM OF THE UNITARY TAX ON FOREIGN CORPORATIONS ABOUT WHICH WE COMMENTED RECENTLY HOSANNAS WERE HEARD FROM NEARLY EVERY CORNER STOW THE CHAMPAGNE THOUGH UNTIL YOU FINISH THE FOLLOWING TALE AMONG THE IMPEDIMENTS TO VIBRANT ENTERPRISE ARE THE PROCESSES SURROUNDING AGENCIES SUCH AS THE STATE PUBLIC UTILITIES COMMISSION ONE OF THE BABY BELLS PACIFIC TELESIS IS AGAIN FINDING THAT OUT THOUGH THE STOCK MARKET APPEARS TO LIKE PACIFIC TELESIS'S PLAN TO SPIN OFF ITS WIRELESS OPERATIONS CALIFORNIA'S PUBLIC INTEREST LITIGANTS DON'T THEY'VE SUCCEEDED IN GETTING AN ADMINISTRATIVE LAW JUDGE FOR THE PUC TO THROW A MONKEY WRENCH INTO THE DEAL THE COMMISSIONERS WILL HAVE AN OPPORTUNITY TO OVERRIDE THE MOVE NEXT MONTH AND CLEAR THE PLAN TO PROCEED THIS YEAR INTEREST GROUPS WANT A PIECE OF THE PACIFIC TELESIS ACTION A PAPERWORK MACHINE KNOWN AS TURN TOWARD UTILITY RATE NORMALIZATION DEMANDS THAT AT LEAST 8 OF THE SPINOFF PROCEEDS GO TO RATEPAYERS FOR THEIR PURPORTED ROLE IN FATHERING THE WIRELESS ARM THAT WOULD NOW COMPETE UNREGULATED KEEP IN MIND WE'RE TALKING ABOUT A MULTIBILLIONDOLLAR DEAL OF COURSE TURN WOULD BE AWARDED A SHARE AS IT TYPICALLY IS IN UTILITY PROCEEDINGS ANOTHER FILING THAT CAUGHT OUR EYE FROM SOMETHING CALLING ITSELF PUBLIC ADVOCATES INC REQUESTS THAT PACTEL BE REQUIRED TO INCREASE ITS UNIVERSAL ACCESS PROGRAM IN RETURN FOR THE SPINOFF BUT AS THE LOS ANGELES TIMES RECENTLY NOTED THIS LIFELINE SERVICE IS EXPANDING QUITE NICELY WITH 20 OF HOUSEHOLDS NOW CLAIMING TO BE LOWINCOME AND ELIGIBLE FOR THE BARGAIN THE PHONE COMPANY DOESN'T BOTHER TO VERIFY THE CLAIMS AND WHY SHOULD IT BECAUSE ALL RATEPAYERS ARE TAXED TO COVER THE COST SHIFT THE SERVICE'S TAX HAS RISEN FOURFOLD SINCE THE PROGRAM BEGAN IN 1986 NOW PUBLIC ADVOCATES DEMANDS THAT PACIFIC BELL THE CALIFORNIA OPERATING UNIT DOUBLE ITS LIFELINE MARKETING EXPENDITURES IN AN AGGRESSIVE MULTILINGUAL OUTREACH ANDGET THIS THAT PACTEL CHANNEL 4 MILLION TO 5 MILLION PER YEAR FOR THREE YEARS INTO A FUND TO ALLOW INDEPENDENT GROUPS TO ADVERTISE THE AVAILABILITY OF LOWCOST PHONE SERVICES TO TARGETED POPULATIONS LET IT BE SAID THAT THE SELFSERVING LEFT LOOKS OUT FOR ITS OWN THE ADMINISTRATIVE LAW JUDGE BOUGHT ENOUGH OF THESE ARGUMENTS TO REQUEST A LENGTHY SET OF HEARINGS FOR THE PACIFIC TELESIS PLAN WHAT'S AT ISSUE IS AN OPENENDED CLAIM RIGHTS TO THE FRUITS OF TECHNOLOGY DERIVED BY SOME PUBLIC PURPOSE OR PUBLICLY FUNDED ENTERPRISE IT COULD BE ARGUED AND FOR A DECENT FEE IT WOULD BE ARGUED THAT TAXPAYERS DESERVE A CUT OF EVERY COMMERCIALIZATION OF SPACE OR MILITARY TECHNOLOGY OR EVERY GOVERNMENT LABORATORY FOR THAT MATTER MAYBE MA BELL'S OLD SUBSCRIBERS SHOULD HAVE GOTTEN ROYALTIES FROM THE TRANSISTOR SELECTED CASES MIGHT BE EXCEPTIONAL BUT IN GENERAL IT WOULD APPEAR THAT ONLY THE ATTORNEYS STAND TO GAIN FROM THIS PURSUIT THE REST OF US HAVE TO GET ON WITH LIFE TELECOMMUNICATIONS IS THE GREAT GROWTH FIELD OF THE IMMEDIATE FUTURE THE PRIME TICKET TO INTERNATIONAL COMPETITIVENESS CALIFORNIA REGULATORS MUST DECIDE WHETHER THEY WANT TO LET A HOME TEAM BE A CONTENDER 9309200014 930920 REVIEW & OUTLOOK EDITORIAL HANDS OFF INHOFE WHEN REP JIM INHOFE MOBILIZED PUBLIC OPINION AND FORCED HOUSE LEADERS TO ALLOW A SEPTEMBER 27 FLOOR VOTE ON HIS BILL TO END SECRET DISCHARGE PETITIONS HE KNEW THEY MIGHT TRY TO UNDERMINE HIM SURE ENOUGH THERE ARE SIGNS THAT THE LEADERSHIP HOPES TO PLACATE THE PUBLIC BY ACCEPTING MR INHOFE'S SECRECY BILL BUT THEN SNEAK THROUGH HOUSERULE CHANGES THAT WOULD GUT HIS REFORM SHOULD THEY TRY THIS STUNT MEMBERS BETTER BE READY TO TAKE SOME REAL HEAT FROM VOTERS ONLY HOURS AFTER MR INHOFE'S FIRSTROUND VICTORY ON SEPTEMBER 8 HOUSE RULES COMMITTEE CHAIRMAN JOE MOAKLEY SAID HE PLANNED AN ALTERNATIVE TO MR INHOFE'S BILL NO DOUBT IT WOULD PAY LIP SERVICE TO REFORM WHILE IT RETAINS THE SYSTEM THAT LETS CONGRESSIONAL BARONS MAKE CERTAIN THAT POPULAR BILLS NEVER SEE THE LIGHT OF DAY HOUSE LEADERS MAY TRY TO REQUIRE THAT TWOTHIRDS OF THE MEMBERS SIGN ANY DISCHARGE PETITION TO BRING A BILL TO THE FLOOR RATHER THAN A SIMPLE MAJORITY SINCE LESS THAN 10 OF DISCHARGE PETITIONS NOW REACH THE HOUSE FLOOR SUCH A REFORM WOULD KILL ANY CHANCE OF FREEING POPULAR BILLS BOTTLED UP IN COMMITTEE EXHIBIT A EVEN THOUGH 75 OF VOTERS AND MORE THAN 100 MEMBERS FAVOR TERM LIMITS SPEAKER TOM FOLEY HASN'T EVEN ALLOWED A COMMITTEE HEARING ON THE ISSUE THE RULES COMMITTEE MET LAST WEEK TO DISCUSS ALTERING THE INHOFE REFORM IT WAS SUGGESTED THAT SUCCESSFUL DISCHARGE PETITIONS MERELY REQUIRE A COMMITTEE TO HOLD HEARINGS ON A BILL A FLOOR VOTE WOULD BE MANDATED ONLY IF A COMMITTEE REFUSED TO TAKE ANY ACTION BUT ACCORDING TO THE NEWSPAPER ROLL CALL HOUSE LEADERS REJECTED EVEN THAT MOVE THEY FEAR THEY'LL LOSE IRON CONTROL OF THE LEGISLATIVE PROCESS IF A MAJORITY OF MEMBERS HAVE A REALISTIC WAY OF BRINGING BILLS TO THE FLOOR THE HEARINGS THEN BECAME A PLATFORM FOR MEMBERS TO VENT THEIR FRUSTRATION WITH MR INHOFE'S SUCCESS AT EXPOSING THE GAG RULE THAT KEPT NAMES ON A DISCHARGE PETITION SECRET REP JAMES OBERSTAR OF MINNESOTA CAME TO DENOUNCE MR INHOFE BUT ENDED UP SCORING POINTS FOR HIM HE CALLED MR INHOFE'S SUNSHINE LAW A GIMMICK HOWEVER HE CONCEDED THAT IF DEMOCRATS WERE IN THE MINORITY WE'D PROBABLY BE DOING THE SAME HE ALSO ADMITTED THAT MANY MEMBERS INTRODUCE BILLS ONLY TO GET SPECIAL INTERESTS OFF THEIR BACKS MR INHOFE SAYS MR OBERSTAR'S ADMISSION PROVES THAT SECRET DISCHARGE PETITIONS ALLOW MEMBERS TO SAY ONE THING AT HOME AND THEN DO SOMETHING ELSE IN WASHINGTON STANDING UP TO SPECIAL INTERESTS IS PART OF THE JOB HE SAYS IF YOU CAN'T STEP ASIDE AND LET SOMEONE WHO CAN SERVE REP INHOFE SAYS HIS BATTLE TO END SECRECY HAS ALSO DEMONSTRATED THE STRANGLEHOLD THAT COMMITTEE CHAIRMEN NOW EXERCISE OVER LEGISLATION BEFORE THE AUGUST RECESS MR INHOFE'S ANTISECRECY PETITION WAS ONLY ONE SIGNATURE SHORT OF THE NEEDED MAJORITY THEN CHAIRMAN MOAKLEY CONVINCED SIX MEMBERS TO REMOVE THEIR NAMES FORCING REP INHOFE TO TAKE HIS CASE TO THE AMERICAN PEOPLE VIRGINIA DEMOCRAT JAMES MORAN CANDIDLY EXPLAINED WHY HE DROPPED OFF WHEN THE CHAIRMAN OF THE RULES COMMITTEE ASKS ME TO DO SOMETHING AND IT'S NOT IN CONFLICT WITH MY CONSCIENCE I THINK MY ABILITY TO SERVE MY DISTRICT IS ENHANCED WHEN I SAY YES MR MORAN THEN NOTED HOW POWERFUL CHAIRMAN MOAKLEY IS THOMAS MANN A CONGRESSIONAL SCHOLAR AT THE BROOKINGS INSTITUTION OPPOSES THE INHOFE REFORM BUT HE ADVISED THE RULES COMMITTEE NOT TO AMEND IT THAT WILL ONLY INFLAME THE PUBLIC FURTHER HE TOLD US HE NOTED THAT IF PROBLEMS DEVELOP THE MAJORITY PARTY WILL THEN HAVE A GOOD REASON TO PUSH FOR MODIFICATIONS IN SHORT THE HOUSE SHOULD HAVE CLEANED UP ITS ACT YEARS AGO NOW THE VOTERS ARE GOING TO DO IT FOR THEM 9309200013 930920 LEISURE & ARTS BOOKSHELF THE PERSONS' BEHIND THE BARK AND WHINNY BY MERLE RUBIN ANNA SEWELL A VICTORIAN INVALID WITH A DEEP COMPASSION FOR ANIMALS CLEVERLY NARRATED BLACK BEAUTY FROM THE VIEWPOINT OF ITS SWEETTEMPERED LONGSUFFERING EQUINE HERO IN THE HOPE OF INCREASING PUBLIC SYMPATHY FOR MISTREATED FOURLEGGED FRIENDS MR HAWKES LONG ESTEEMED IN LITERARY CIRCLES FOR HIS POLISHED CRAFTSMANSHIP AND UNPREDICTABLE IMAGINATION HAS CHOSEN LIKE SEWELL BEFORE HIM TO ALLOW THE EPONYMOUS EQUUS TO SPEAK FOR HIMSELF MR HAWKES ALSO SUCCEEDS IN PROVIDING AN ANIMAL'S VIEW OF MAN'S INHUMANITY TO BEAST BUT HE HAS A FEW MORE TRICKS UP HIS SLEEVE SWEET WILLIAM LIKE BLACK BEAUTY HAS A HAPPY COLTHOOD BUT BEFORE LONG AS HE GRIMLY REFLECTS HIS STAR BEGINS TO PLUMMET IT IS NOT VERY NICE TO BE AT THE MERCY OF HUMANS EVEN WELLINTENTIONED ONES BUT UNLIKE THE GOODNATURED TRUSTING VICTORIAN HORSE SWEET WILLIAM IS NOT JUST A BLAMELESS AND NOBLE VICTIM HE IS BY HIS OWN ACCOUNT A SHORTTEMPERED MISANTHROPE WHO REACTS INSTANTLY INSTINCTIVELY AND SOMETIMES VIOLENTLY AGAINST ANYTHING THAT OFFENDS HIS HIGHLY REFINED THOROUGHBRED SENSIBILITY SENSITIVE FASTIDIOUS ATHLETIC AND INTOLERANT A HORSY MARCEL PROUST WHO CAN BITE KICK JUMP WILLIAM HAS AN INBORN SENSE OF WHAT'S RIGHT AND A FURIOUS LOATHING OF WRONG IN SOME WAYS HE'S AS MUCH A VICTIM OF HIS OWN HIGHSTRUNG TEMPERAMENT AS OF HUMAN MISDEEDS WRITING IN THIS PROFOUNDLY IMPROBABLE YET ULTIMATELY MOVING AND PERSUASIVE VOICE MR HAWKES PORTRAYS NOT MERELY A MISTREATED ANIMAL BUT SOMETHING AKIN TO A TRAGIC PERSONALITY CLEVER IF NOT CLEVER ENOUGH PASSIONATE BRAVE SELFWILLED AND POWERFUL BUT POWERLESS IN THE END TO EVADE HIS SAD FATE IT'S A REMARKABLE ACHIEVEMENT A HIGHSTRUNG THOROUGHBRED OR ANY OTHER ANIMAL WOULD DOUBTLESS HAVE LED A HAPPIER LIFE HAD HE FALLEN INTO THE HANDS OF AN OWNER LIKE ELIZABETH MARSHALL THOMAS THE AUTHOR OF AN ANTHROPOLOGICAL NOVEL ABOUT PALEOLITHIC SIBERIANS AND A NONFICTION ACCOUNT OF THE KUNG BUSHMEN MS THOMAS HAS NOW TURNED HER ATTENTION TO THE HIDDEN LIFE OF DOGS HOUGHTON MIFFLIN/PETER DAVISON 148 PAGES 1895 WHAT SHE WONDERS DO DOGS WANT ALTHOUGH MS THOMAS SPENT SOME TIME STUDYING THE WOLVES OF BAFFIN ISLAND MOST OF WHAT SHE HAS LEARNED ABOUT DOGS HAS COME FROM OBSERVING THE DOZEN OR SO SHE'S LIVED WITH INCLUDING A COUPLE OF HUSKIES NAMED MISHA AND MARIA KOKI A HUSKY BRED AS A SLED DOG A PAIR OF PUGS NAMED BINGO AND VIOLET AND AN AUSTRALIAN WILD DOG OR DINGO NAMED VIVA MS THOMAS BEGINS BY FOLLOWING MISHA THE HUSKY ON HIS DAILY WANDERINGS THROUGH THE STREETS OF CAMBRIDGE MASS WHERE HE MANAGES TO COVER SOME 130 SQUARE MILES WITHOUT LOSING HIS WAY OR BEING FLATTENED BY A CAR ALTHOUGH HE SNIFFS THE LIDS OF GARBAGE CANS HE'S NOT LOOKING FOR FOOD AND ALTHOUGH HE'S EXCITED BY ENCOUNTERS WITH OTHER DOGS WHAT HE WANTS WITH THEM IS SELDOM ANYTHING AS FORTHRIGHT AS SEX OR AS SIMPLE AS COMPANIONSHIP THE MAIN PURPOSE OF MISHA'S PEREGRINATIONS MS THOMAS EVENTUALLY DEDUCES IS WHAT SHE HAD AT FIRST THOUGHT ONLY INCIDENTAL TO ESTABLISH HIS RANK AMONG THE OTHER DOGS HE ENCOUNTERS WHAT DOGS WANT SHE EVENTUALLY CONCLUDES IS TO BE WITH OTHER DOGS TO LIVE LIKE THEIR ANCESTORS WOLVES IN A SECURELY HIERARCHICAL GROUP WHERE EVERY DOG FROM THE HIGHESTRANKING MALES AND FEMALES TO THE YOUNGEST PUPPY FEELS THE SENSE OF BELONGING THAT APPARENTLY COMES WITH KNOWING ONE'S PLACE IN CANINE SOCIETY UNLIKE VICKI HEARNE'S INTERESTING WRITINGS ON THE MYSTERIES OF DOGS' RELATIONSHIPS WITH HUMANS MS THOMAS'S INVESTIGATION MINIMIZES HER OWN ROLE TO FOCUS ON HOW DOGS INTERACT WITH OTHER DOGS SHE WATCHES AS HER HOUSEHOLD MENAGERIE ARRANGES ITSELF INTO A SORT OF MAKESHIFT HIERARCHY THAT BEARS AN UNCANNY RESEMBLANCE TO THAT OF A WOLF PACK AT ONE POINT HER ANIMALS SURREPTITIOUSLY BUILD THEMSELVES A DEN COMPLETE WITH A HIDDEN TUNNEL MORE DISTURBINGLY KOKI THE SECONDRANKING FEMALE HUSKY KILLS THE NEWBORN LITTER OF THE LOWERRANKING VIVA PRESUMABLY IF NEEDLESSLY TO ENSURE THE SURVIVAL OF HER OWN PUPS YET THIS SAME DOG ALSO TRIES TO NURSE THE TINY GRUBLIKE ORPHANS OF A DEAD OPOSSUM UNLIKE SOME SCIENTISTS WHO LOOK ONLY FOR TYPICAL BEHAVIOR THAT LENDS ITSELF TO GENERALIZATION MS THOMAS IS INTRIGUED BY DOGS' INDIVIDUAL ODDITIES WHAT SHE SEES IS WHAT SHE REPORTS WHICH IN THE LONG RUN PROBABLY MAKES FOR BETTER SCIENCE AS WELL AS LIVELIER READING ALTHOUGH MS THOMAS'S DOGS AT TIMES TAKE ON ALMOST HUMAN PERSONALITIES SHE IS WELL AWARE OF THE VAST GULF BETWEEN DOGS AND HUMANS RELAXING WITH HER DOGS ONE AFTERNOON SHE FINALLY FEELS SHE MAY BE SAVORING A TINY TASTE OF CANINE CONSCIOUSNESS TO SIT IDLY NOT DOING MERELY EXPERIENCING COMES HARD TO A PRIMATE YET FOR ONCE I WASN'T AMONG PRIMATES PRIMATES FEEL PURE FLAT IMMOBILITY AS BOREDOM BUT DOGS FEEL IT AS PEACE 9309200012 930920 WHAT'S NEWS BUSINESS AND FINANCE QVC NETWORK RECEIVED A COMMITMENT FROM COMCAST AND LIBERTY MEDIA TO BACK A RIVAL BID FOR PARAMOUNT BY INVESTING 1 BILLION IN QVC AN OFFER FROM QVC WHICH COULD COME THIS WEEK IS LIKELY TO TOP 8 BILLION PARAMOUNT HAS AGREED TO BE BOUGHT BY VIACOM IN A DEAL CURRENTLY VALUED AT 75 BILLION MEANWHILE TED TURNER APPROACHED QVC OVER THE WEEKEND ABOUT A JOINT EFFORT AND OTHER COMPANIES ARE EXPLORING BIDS ANTITRUST QUESTIONS MAY ARISE IF QVC OR TURNER BROADCASTING MOUNTS A BID FOR PARAMOUNT BECAUSE OF THE ROLE OF CABLE TV MOGUL JOHN MALONE U S WEST WILL LAY OFF 9000 EMPLOYEES AND TAKE 38 BILLION IN THIRDQUARTER CHARGES AS IT ATTEMPTS TO TURN ITS TELEPHONE NETWORK INTO A MODERN PHONE DATA AND VIDEO SUPERHIGHWAY A SPECIAL ACCOUNTING PANEL IS EXPECTED TODAY TO ASSERT THAT DISCLOSURE IN CORPORATE ANNUAL REPORTS MUST BE GREATLY INCREASED TO MAKE THEM RELEVANT TO INVESTORS AND CREDITORS TIME INC PLANS TO RESTRUCTURE ITS PUBLISHING OPERATIONS THE OVERHAUL AT THE TIME WARNER UNIT WILL INCLUDE DECENTRALIZING THE MAGAZINE ADVERTISING SALES STAFF BUSINESS AND EDITORIAL STAFFERS EXPECT FURTHER JOB CUTS HONDA WILL HALT EXPORTS OF ITS BESTSELLING MODELS TO THE US ANOTHER SIGN THE YEN'S STRENGTH IS PINCHING JAPANESE MANUFACTURERS HONDA WILL SELL ACCORDS AND CIVICS MADE AT ITS NORTH AMERICAN FACTORIES SEPARATELY NISSAN AND MITSUBISHI PLAN HEFTY US PRICE INCREASES ON 1994 MODELS GM SAID IT SOLD FIVE PARTSMAKING PLANTS EMPLOYING 6800 UAW WORKERS UAW OFFICIALS ARE SUSPICIOUS OF THE TIMING OF THE SALE WHICH CAME JUST THREE DAYS AFTER GM'S THREEYEAR CONTRACT WITH THE UNION EXPIRED WESTINGHOUSE SAID THIRDQUARTER EARNINGS WILL FALL 50 FROM A YEAR EARLIER BLAMING POOR RESULTS IN ITS ENVIRONMENTAL CLEANUP BUSINESS WESTINGHOUSE STOCK FELL 1125 TO 1375 OIL PRICES COULD RISE SOON A SMALL BUT GROWING GROUP OF ECONOMISTS AND ANALYSTS CONTENDS EVEN IF OPEC FAILS TO SET CREDIBLE FOURTHQUARTER OUTPUT LEVELS AT A GENEVA MEETING SATURDAY STOCK PRICES SLID WITH THE DOW JONES INDUSTRIALS DOWN 1760 POINTS TO 361325 BIG BOARD VOLUME HIT 3695 MILLION SHARES THE HEAVIEST IN NINE MONTHS AMID THE QUARTERLY EXPIRATION OF STOCK INDEX FUTURES BOND PRICES WERE MIXED AND THE DOLLAR ROSE A US COURT RULED VICTIMS SUING OVER EXPOSURE TO LEAD PAINT MUST PINPOINT WHEN THE PAINT WAS USED MAKING IT HARDER TO SEEK DAMAGES INDUSTRYWIDE FROM MAKERS OF LEAD PAINT UPJOHN SAID VICE CHAIRMAN WILLIAM PARFET RESIGNED UNTIL RECENTLY MR PARFET WAS CONSIDERED A CONTENDER TO FILL THE VACANT CHAIRMAN'S POST MAYFLOWER GROUP REJECTED AN UNSOLICITED 170 MILLION TAKEOVER OFFER FROM IRWIN JACOBS WHO SAID HE WOULD DROP HIS BID FOR THE MOVING CONCERN CALIFORNIA REGULATORS CLEARED THE WAY FOR LONGDISTANCE CARRIERS TO COMPETE WITH LOCAL PHONE COMPANIES IN THE MARKET FOR INTRASTATE TOLL CALLS BONDS LEHMAN BROTHERS TREASURY INDEX 560431 UP 168 COMMODITIES OIL 1707 A BARREL UP 24 CENTS DOW JONES FUTURES INDEX 12653 UP 085 SPOT INDEX 12182 OFF 006 DOLLAR 10445 YEN UP 030 16146 MARKS UP 00121 9309200011 930920 EXRAIDER JACOBS WITHDRAWS BID FOR MAYFLOWER BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL FORMER RAIDER IRWIN L JACOBS'S FRIENDLY BUYOUT FUND MADE AN UNWANTED 170 MILLION BID FOR MAYFLOWER GROUP INC BUT DREW A SHARP REBUFF FROM THE PARENT OF ONE OF THE NATION'S BIGGEST MOVING CONCERNS DISCLOSURE OF IMR FUND LP'S 1350ASHARE BID SENT MAYFLOWER'S NORMALLY THINLY TRADED STOCK UP 2875 OR 30 TO CLOSE AT 1250 FRIDAY IN NATIONAL OVERTHECOUNTER TRADING BUT BY FRIDAY EVENING MR JACOBS WHO WAS KNOWN IN THE 1980S FOR HIS PROTRACTED HOSTILE PURSUITS MADE IT CLEAR THAT HIS INTEREST IN MAYFLOWER WAS AT AN END MAYFLOWER FOLLOWING A FRIDAY BOARD MEETING REJECTED THE BID THE CARMEL IND COMPANY SAID IT IS POISED TO ACQUIRE NOT BE ACQUIRED IT ALSO QUOTED AN OFFICIAL OF TRUST CO OF THE WEST A FUND THAT HOLDS A 51 STAKE AS SAYING THE FUND IS ENTIRELY SATISFIED WITH THE MANAGEMENT OF MAYFLOWER IMR INITIALLY DISCLOSED THE BID FRIDAY SAYING IT HAD MADE THE UNSOLICITED PROPOSAL TO MAYFLOWER ON MONDAY WHICH MAYFLOWER CONFIRMED THERE'S BEEN A DIALOGUE FOR THE PAST FIVE OR SIX WEEKS BETWEEN IMR AND MAYFLOWER MR JACOBS SAID IN AN INTERVIEW FRIDAY EVENING HE SAID HE MADE HIS PROPOSAL PUBLIC BECAUSE THERE WAS A LEAK FROM THEIR SIDE ABOUT THE TALKS WHICH LED TO INVESTORS HEARING INCORRECTLY THAT BEKINS HOLDING CO THE PARENT OF BEKINS VAN LINES CO MIGHT BE ACQUIRED BY MAYFLOWER IMR MADE A FRIENDLY ACQUISITION OF BEKINS EARLIER THIS YEAR IN ITS FIRST AND ONLY PURCHASE SINCE MR JACOBS RAISED ABOUT 500 MILLION FROM INSTITUTIONAL INVESTORS MAYFLOWER AND BEKINS ARE REPORTEDLY THE NATION'S FOURTH AND SIXTHLARGEST MOVERS RESPECTIVELY AND MR JACOBS SAID THEIR COMBINATION WOULD CREATE THE LARGEST SUCH COMPANY IN THE US BUT BOTH TRANSPORT COMPANIES HAVE BEEN THROUGH TOUGH TIMES IN RECENT YEARS MAYFLOWER FOR EXAMPLE WENT PRIVATE THROUGH A LEVERAGED BUYOUT IN 1986 IN 1991 WHEN IT COULDN'T SERVICE ITS DEBT IT WENT INTO A CHAPTER 11 BANKRUPTCY REORGANIZATION CREDITORS GOT A CONTROLLING STAKE IN EXCHANGE FOR DEBT CONCESSIONS BEKINS IS UNDER MR JACOBS'S OWNERSHIP FOR THE SECOND TIME THE CALIFORNIA COMPANY INITIALLY WAS ACQUIRED THROUGH A HOSTILE BID IN 1983 THE INVESTOR WHO ONCE WAS KNOWN AS IRV THE LIQUIDATOR SOLD OFF BEKINS'S SUBSIDIARIES AND REALESTATE ASSETS TERMINATED AN OVERFUNDED PENSION FUND AND FINALLY SOLD BEKINS TO A MANAGEMENT GROUP IN 1987 THE DEBT FROM THAT LEVERAGED PURCHASE PROVED BURDENSOME AND THE IMR FUND REPURCHASED BEKINS IN JANUARY OF THIS YEAR 9309200010 930920 DIASONICS SPLIT PLAN IS APPROVED MILPITAS CALIF DIASONICS INC SAID SHAREHOLDERS APPROVED ITS PREVIOUSLY REPORTED PLAN TO SPLIT ITSELF INTO THREE PUBLICLY TRADED COMPANIES DIASONICS ULTRASOUND INC FOCAL SURGERY INC AND OEC MEDICAL SYSTEMS INC THE PLAN WILL CAUSE DIASONICS INC A MEDICALEQUIPMENT MAKER TO CEASE ITS EXISTENCE 9309200009 930920 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE PLUNGE OF MORTGAGE RATES TO 25YEAR LOWS HASN'T PRODDED THE HOUSING MARKET THE WAY ONE WOULD HAVE EXPECTED WHILE THERE HAS BEEN SOME IMPROVEMENT IN SALES OF EXISTING HOMES HOUSING CONSTRUCTION AND NEW HOME SALES CONTINUE TO FALTER IT'S TROUBLESOME SAID DAVID LEREAH CHIEF ECONOMIST AT THE MORTGAGE BANKERS ASSOCIATION WHO NOTED THE HOUSING MARKET NORMALLY IS THE FIRST SECTOR OF THE ECONOMY TO RESPOND TO LOW INTEREST RATES THE RESPONSE MAY JUST TAKE A LITTLE LONGER THIS TIME BECAUSE OF THE RESISTANCE BEING PUT UP BY THE SLUGGISH ECONOMY HE SAID THE MBA'S INDEX OF MORTGAGE APPLICATIONS HAS REACHED A RECORD HIGH AND BUILDING PERMITS ARE RISING BOTH POSITIVE SIGNS FOR THE FUTURE MR LEREAH SAID A COMMERCE DEPARTMENT REPORT TO BE RELEASED THIS WEEK PROBABLY WILL SHOW A 2 INCREASE IN AUGUST IN THE PACE OF HOUSING STARTS AFTER THEY FELL 27 IN JULY HE SAID MY READING OF THE HOUSING MARKETS IS THAT INTEREST RATES HAVE BEEN SO LOW FOR SO LONG THAT THEY WILL HAVE A POSITIVE IMPACT ON HOUSING ACTIVITY MR LEREAH SAID THE RATE ON 30YEAR FIXED MORTGAGES HAS BEEN FALLING SINCE THE START OF THE YEAR HITTING 682 TWO WEEKS AGO THE LOWEST RATE SINCE MAY 1968 ACCORDING TO A SURVEY OF LENDERS DONE BY FREDDIE MAC 9309200007 930920 WESTINGHOUSE SEES 3RDQUARTER PROFIT FALLING 50 ON CLEANUP UNIT WEAKNESS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP BLAMING POOR RESULTS IN ITS ENVIRONMENTAL CLEANUP BUSINESS SAID ITS THIRDQUARTER EARNINGS WILL FALL 50 FROM LAST YEAR'S NET INCOME OF 91 MILLION OR 22 CENTS A SHARE THE EXPECTED EARNINGS DECLINE ADDS TO THE WOES OF WESTINGHOUSE WHICH HAS STRUGGLED UNDER A MASSIVE DEBT LOAD AS A RESULT OF ITS FAILED VENTURE INTO FINANCIAL SERVICES THAT VENTURE RESULTED IN 5 BILLION IN CHARGES FROM BAD LOANS IN THE PAST THREE YEARS SEPARATELY WESTINGHOUSE DISCLOSED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT AGREED TO PAY ITS NEW CHAIRMAN AND CHIEF EXECUTIVE MICHAEL H JORDAN A 1 MILLION ANNUAL SALARY 43 HIGHER THAN HIS PREDECESSOR PAUL E LEGO MR JORDAN WHO WAS NAMED TO HIS NEW POSTS JUNE 30 SIX MONTHS AFTER MR LEGO WAS FORCED TO RESIGN ALSO RECEIVED A 400000 SIGNING BONUS WESTINGHOUSE SAID ITS THIRDQUARTER EARNINGS SHORTFALL IS DUE IN PART TO THE CONTINUED DETERIORATION IN THE ENVIRONMENTAL MARKET WITH NEARTERM IMPROVEMENT UNLIKELY IT ALSO SAID ITS ELECTRONIC SYSTEMS POWER SYSTEMS AND BROADCASTING UNITS FARED POORLY IN THE QUARTER THE COMPANY'S STOCK SLID ON THE NEWS FRIDAY FALLING 1125 TO CLOSE AT 1375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MANUFACTURING AND ELECTRONICS CONCERN ADDED THAT IT EXPECTS A STRONG FOURTH QUARTER BUT SAID THAT IT WON'T BAIL OUT THE YEAR FINANCIAL RESULTS FOR 1993 WILL DROP 10 TO 20 BELOW THE 95 CENTS A SHARE THE COMPANY EARNED IN 1992 FROM CONTINUING OPERATIONS WESTINGHOUSE SAID WESTINGHOUSE EARNED 348 MILLION FROM CONTINUING OPERATIONS FOR THE YEAR INCLUDING OTHER ACCOUNTING ADJUSTMENTS AND DISCONTINUED OPERATIONS IT HAD A LOSS OF 129 BILLION OR 381 A SHARE IN 1992 HOWEVER THE SEC FORCED WESTINGHOUSE IN AUGUST TO CLASSIFY TWO DISCONTINUED OPERATIONS AS CONTINUING WHICH CHANGED ITS EARNINGS THE COMPANY SAID IT DIDN'T HAVE A NEW 1992 NET INCOME FIGURE INCLUDING THE RECLASSIFICATION NICHOLAS P HEYMANN AN ANALYST WITH NATWEST SECURITIES CORP SAID WESTINGHOUSE'S WASTE INCINERATORS ARE RUNNING AT FAR LESS THAN CAPACITY CUSTOMERS ARE SLOWING SHIPMENTS TO THE INCINERATORS BECAUSE THE GOVERNMENT HAS YET TO CLARIFY SOME REGULATIONS UNDER THE CLINTON ADMINISTRATION HE SAID THE INDUSTRY ALSO IS SUFFERING FROM TOO MANY INCINERATORS AND TOO LITTLE TRASH WHICH IS PUSHING DOWN PRICES AND INCINERATORS CARRY HIGH FIXED COSTS MAKING IT EASY FOR THEM TO FALL INTO THE RED WHEN THEIR OPERATING RATES DECLINE MR HEYMANN SAID WESTINGHOUSE HAS ALSO SUFFERED ORDER DELAYS IN ITS POWER GENERATION AND ELECTRONICS BUSINESS ACCORDING TO ANALYSTS THE COMPANY WOULDN'T DISCUSS HOW THESE AND OTHER BUSINESSES ARE FARING MEANWHILE MR JORDAN'S COMPENSATION AGREEMENT TIES A BIG PORTION OF HIS FUTURE INCOME TO THE COMPANY'S STOCK IT INCLUDES THREE STOCKOPTION GRANTS TOTALLING ONE MILLION SHARES ACCORDING TO THE DOCUMENT THE FIRST 500000 SHARES CARRY AN OPTION PRICE OF 1544 A SHARE BUT HE CAN'T EXERCISE THEM FOR ONE YEAR A 250000 SHARE BLOCK HAS THE SAME OPTION PRICE BUT A THREEYEAR VESTING PERIOD AND THE FINAL 250000 SHARES CAN BE EXERCISED AFTER FOUR YEARS OR WHEN THE COMPANY'S STOCK REACHES 26 A SHARE MR JORDAN ALSO WAS INCLUDED IN THE COMPANY'S LONGTERM BONUS PROGRAM WHICH STARTED IN 1992 AND ENDS IN 1994 IF THE COMPANY REACHES CERTAIN GOALS MR JORDAN COULD RECEIVE AN ADDITIONAL 500000 IN THAT TIME PERIOD WESTINGHOUSE DECLINED TO REVEAL THOSE GOALS BUT SAID IT'S UNLIKELY MR JORDAN WOULD RECEIVE THE FULL AMOUNT BECAUSE OF THE COMPANY'S POOR PERFORMANCE SINCE THE PROGRAM BEGAN SINCE TAKING OVER MR JORDAN HAS OFFERED FEW CLUES ABOUT HIS PLANS FOR OVERHAULING WESTINGHOUSE HE HAS CALLED CUTTING DEBT A TOP PRIORITY THIS YEAR BUT ANALYSTS EXPECT HIM TO ANNOUNCE MAJOR LAYOFFS TOO WESTINGHOUSE LAST YEAR BEGAN A RESTRUCTURING THAT INCLUDED SELLING FOUR UNITS IT ALREADY HAS AN AGREEMENT TO SELL ONE ITS DISTRIBUTION AND CONTROL UNIT 9309200006 930920 INTERNATIONAL FORMER TENNIS STAR RETURNS TO ROMANIA BUILDS A WESTERNSTYLE BUSINESS EMPIRE BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL BUCHAREST BREAKFASTING ON HIS SUNNY TERRACE ACROSS THE STREET FROM THE HOUSE OF LATE ROMANIAN DICTATOR NICOLAE CEAUSESCU ION TIRIAC CONSIDERS A PLATE OF CHICKEN LIVERS YOU EAT THREE TIMES THE MEAT IN THIS COUNTRY RUMBLES MR TIRIAC A FORMER TENNIS STAR WHO MORE RECENTLY MANAGED GERMAN PHENOM BORIS BECKER WHAT A MARKET THIS WOULD BE FOR CEREALS SINCE RETURNING TO HIS HOMELAND FOLLOWING ROMANIA'S CHRISTMAS 1989 REVOLUTION THE FORMER GLASSEATING WOMANCHASING DOUBLES PARTNER OF ILIE NASTASE HAS BECOME ROMANIA'S FIRST PRIVATE CONGLOMERATEUR IN BUCHAREST HE IS BUILDING THE BIGGEST MERCEDESBENZ SALES AND SERVICE OFFICE EAST OF GERMANY HE IS SIEMENS AG'S ROMANIAN TELECOMMUNICATIONS REPRESENTATIVE HE HAS A FORD MOTOR DEALERSHIP A RADIO STATION NEWSLETTERS AND AN AD AGENCY JOINT VENTURE WITH YOUNG & RUBICAM HE HAS CHANNEL 31 THE FIRST PRIVATE TELEVISION STATION A STAKE IN ROMANIA'S FIRST PRIVATE BANK AND A STAKE IN A MERCHANT BANK WHOSE OWNERS INCLUDE NEW YORK'S WASSERSTEIN PERELLA & CO HE SAYS HE PLANS TO BUILD WITH A GERMAN PARTNER A 300ROOM HOTEL MANAGED BY RAMADA AND HAS PLANS FOR OFFICE BUILDINGS I COULD DO ANOTHER 20 THINGS A DAY BUT YOU HAVE TO HAVE LIMITS SAYS MR TIRIAC WHO HAS POURED MORE THAN 20 MILLION INTO BUSINESSES THAT EMPLOY SOME 1000 PEOPLE MAKING HIM THE NATION'S LARGEST INDIVIDUAL INVESTOR SOME THINK HE IS SPREADING HIMSELF TOO THIN AND EVEN HE CONCEDES I HAVE TO BE CAREFUL NOT TO GET TOO BIG TOO FAST HIS TENNIS INTERESTS HOWEVER HAVE HIT A ROUGH PATCH IN LATE JULY MR BECKER FIRED MR TIRIAC AS HIS BUSINESS MANAGER BUT MR TIRIAC SAYS HE HAS AN EXCLUSIVE MANAGEMENT CONTRACT WITH MR BECKER THROUGH 1996 WHATEVER THE OUTCOME OF THE BECKER TIFF MR TIRIAC'S ROMANIAN ACTIVITIES ILLUSTRATE HOW INDIVIDUALS VERSED IN THE WAYS OF THE WEST BUT BORN IN THE EAST ARE RETURNING TO ASSUME POSITIONS OF POWER DISPLACED POLES HAVE OPENED EVERYTHING FROM PIZZA PARLORS TO INVESTMENT BANKS IN POLAND IN RUSSIA TWENTYSOMETHINGS EDUCATED AT LONDON MERCHANT BANKS ARE MAKING FORTUNES WHILE PEERS JUST SCRAPE BY A CLEVELAND LAWYER WHOSE GRANDPARENTS WERE CZECH FOUND HIMSELF WRITING THE CZECH PRIVATIZATION LAW BUT NOT EVERYTHING THE 54YEAROLD MR TIRIAC HAS TOUCHED HAS BEEN A HUGE SUCCESS WHILE ACTING AS UNITED DISTILLERS' LOCAL REPRESENTATIVE THE BRITISH LIQUOR COMPANY'S MARKET SHARE DROPPED TO 6 FROM 28 MR TIRIAC ATTRIBUTES THE DECLINE TO THE FACT THAT HE REFUSED TO EVADE TAXES AND IMPORT DUTIES AND WAS UNDERCUT BY BRANDS THAT DID UNITED DISTILLERS SAYS IT IS TERMINATING THE CONTRACT BECAUSE OF HIS INABILITY TO PROPERLY MARKET OUR BRANDS HIS EXPANDING EMPIRE ALSO HAS STIRRED SOME RESENTMENT AT HOME WHEN HE FIRST RETURNED HE COZIED UP TO THENPRIME MINISTER PETRE ROMAN MR TIRIAC HAS BEEN CRITICIZED FOR USING HIS INFLUENCE WITH MR ROMAN TO OBTAIN HIS BANK LICENSE AND PRIME REAL ESTATE HE DISMISSES THE CRITICISM ALTHOUGH ROMANIA IS ATTRACTING SOME FOREIGN INVESTMENT IT IS STILL STRUGGLING WITH THE MOVE TO A MARKET ECONOMY INFLATION IS RAMPANT AND CORRUPTION IS SPREADING AND IN THE ABSENCE OF MUCH COMPETITION MR TIRIAC HAS EMERGED AS A ROMANIAN DONALD TRUMP TED TURNER SAM WALTON AND GEORGE SOROS ROLLED INTO ONE HE SAYS HE IS DRIVEN BY A COMBINATION OF PATRIOTISM AND BUSINESS ACUMEN IN ROMANIA I AM HOME I FELT I AM ONE OF THE PEOPLE WHO CAN EVENTUALLY HELP OR INFLUENCE THE FUTURE OF THIS COUNTRY HE SAYS MR TIRIAC HAS BEEN HELPING HIMSELF SINCE HE DISCOVERED TENNIS HE HOOKED UP WITH MR NASTASE AND THEY BECAME THE WORLD'S BEST DOUBLES TEAM THOSE WERE THE DAYS WHEN MR TIRIAC BET HE COULD EAT GLASS MR NASTASE SAYS AT THE BEGINNING HE CANNOT AFFORD ANYTHING ELSE AFTER HE WAS EATING CRYSTAL WAS MUCH BETTER FOR HIS STOMACH IN 1972 MR TIRIAC WENT INTO COACHING AND SPORTS MANAGEMENT HE SIGNED UP MR BECKER IN 1984 WHEN THE GERMAN WAS JUST 15 YEARS OLD ON MR BECKER'S BEHALF HE NEGOTIATED SOME OF THE SPORT'S MOST LUCRATIVE ENDORSEMENT CONTRACTS IN ROMANIA MR TIRIAC CLAIMS A SIMPLE PHILOSOPHY HE CHOOSES THE BUSINESSES THEN FINDS A KNOWLEDGEABLE PARTNER HE KNOWS THE MARKET SAYS INGOLF PROWE WHO CAME FROM STUTTGART GERMANY TO MANAGE THE MERCEDES SHOP IN BUCHAREST THE MERCEDES SERVICE CENTER ACCOUNTS FOR ABOUT HALF MR TIRIAC'S ROMANIAN INVESTMENT THE BUSINESS ISN'T BIG YET LAST YEAR IT SOLD 400 TRUCKS MOSTLY TO THE GOVERNMENT AND 250 CARS MR TIRIAC HAS ALSO MADE A CUNNING BET BY BECOMING SIEMENS'S ROMANIAN REPRESENTATIVE EACH TIME SIEMENS SELLS A PHONE SWITCH MR TIRIAC'S VENTURE GETS A SLICE OF THE SALE THROUGH A 635 MILLION LOAN LED BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ROMANIA IS BRINGING ITS PHONE SYSTEM OUT OF THE DARK AGES WHAT FASCINATES MR TIRIAC MOST IS THE MEDIA BUSINESS HE HAS A JOINT VENTURE WITH A FELLOW ROMANIAN THAT EMPLOYS 250 THE PEOPLE ARE SO THIRSTY FOR INFORMATION ENTERTAINMENT AND EVERYTHING ELSE THAT IF YOU DO IT RIGHT YOU CAN HAVE A HUGE SUCCESS SAYS MR TIRIAC WHO SOON MAY SEEK VENTURES WITH MR TURNER RUPERT MURDOCH OR GERMANY'S BERTELSMANN MR TIRIAC'S BANK CALLED BANCA COMERCIALA ION TIRIAC IS 20 OWNED BY THE EBRD THE BANK IN WHICH MR TIRIAC HOLDS A 31 STAKE OWNS A 15 STAKE IN ROMANIA'S FIRST INVESTMENT BANK CAPITAL SA WHICH IS PARTLY OWNED BY THE EBRD AND BY WASSERSTEIN PERELLA BECAUSE MR TIRIAC'S BUSINESSES ARE PRIVATE GAUGING HIS PROFITS IS DIFFICULT HE SAYS ONLY THAT ANNUAL TURNOVER AT TIVI BV THE DUTCH HOLDING COMPANY THAT SITS ATOP MR TIRIAC'S SPORTS EMPIRE IS ABOUT 50 MILLION MARKS 312 MILLION AND 5 TO 10 COMES FROM FEES RELATED TO MR BECKER 9309200005 930920 ALLIED GROUP FACES CRITICISM OVER TRADING HONG KONG FIRM ALLEGEDLY HAD MANY TRANSACTIONS OF QUESTIONABLE NATURE BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG A GOVERNMENTORDERED REPORT ON THE DEALINGS OF ALLIED GROUP OF HONG KONG DEPICTS THE KIND OF FINANCIAL SLEIGHT OF HAND THAT HAS LONG MADE SOME FOREIGN INVESTORS WARY OF HONG KONG'S STOCK MARKET THE REPORT BY A GOVERNMENTAPPOINTED INSPECTOR IS PART OF THE BRITISH COLONY'S EFFORT TO PROVE ITSELF SERIOUS ABOUT MAKING THE MARKET FAIRER AND MORE TRANSPARENT HONG KONG HAS LONG BEEN CRITICIZED FOR THE CLUBBY CONTROL OF ITS LISTED COMPANIES AND FOR LAX ENFORCEMENT OF ITS SECURITIES RULES YET THE TRANSACTIONS DESCRIBED IN THE REPORT'S 1000PLUS PAGES ARE LIKELY TO CONFIRM MANY INVESTORS' WORST FEARS ABOUT HOW SOME COMPANIES CONDUCT THEMSELVES IN THE COLONY'S LAISSEZFAIRE BUSINESS CLIMATE NO CHARGES HAVE BEEN FILED IN CONNECTION WITH THE REPORT ALTHOUGH A RELATED INVESTIGATION IS UNDER WAY BY THE COLONY'S COMMERCIAL CRIME BUREAU LAST WEEK THE CCB RAIDED A TOTAL OF 100 COMPANIES INVOLVED WITH THE GROUP INCLUDING ITS KEYSTONE ALLIED GROUP LTD BRIAN O'CONNOR ALLIED GROUP'S CHIEF EXECUTIVE ACCUSED THE GOVERNMENT OF ATTEMPTING TO PRESENT THE ALLIED GROUP IN AS BAD A LIGHT AS POSSIBLE BY NOT GIVING THE COMPANY A CHANCE TO REVIEW THE DOCUMENT IN ADVANCE OF ITS RELEASE ON SATURDAY A COMPANY SPOKESMAN SAID ALLIED GROUP'S CHAIRMAN LEE MING TEE IS AWAY ON BUSINESS MR LEE'S NEPHEW LEE SENG CHAY WHO ALSO FIGURES PROMINENTLY IN THE REPORT WAS ALSO UNAVAILABLE FOR COMMENT THE SPOKESMAN SAID THE REPORT SAYS CHAN CHUN ON THE THIRD MAJOR PLAYER IN ALLIED GROUP'S AFFAIRS DURING THE PERIOD INVESTIGATED IS BELIEVED TO BE IN TAIWAN WHERE HE APPARENTLY HAS GONE INTO HIDING THE THREE MEN ARE THE PRINCIPAL CHARACTERS TYING TOGETHER A COMPLICATED WEB OF OFFSHORE COMPANIES AND TRUSTS THAT THE REPORT ALLEGES HELPED ALLIED GROUP AVOID HONG KONG'S DISCLOSURE RULES THE NETWORK OF COMPANIES IS ALSO ALLEGED TO HAVE BEEN USED TO SUPPORT ALLIED GROUP'S SHARE PRICE AND CONSOLIDATE LEE MING TEE'S CONTROL OVER THE LISTED COMPANIES INVOLVED AS OF LATE SUNDAY A TEAM OF ALLIED GROUP LAWYERS WERE STILL PORING OVER THE REPORT A COMPANY SPOKESMAN WOULD ONLY SAY ALLIED GROUP STICKS BY THE INTEGRITY OF ITS 1992 ANNUAL REPORT RELEASED IN MAY THE ANNUAL REPORT ANTICIPATES SOME OF THE INFORMATION REVEALED IN THE INSPECTOR'S REPORT BUT GIVES ONLY THE BAREST DETAIL FOR EXAMPLE THE ANNUAL REPORT DISCLOSES A PREVIOUSLY UNDISCLOSED SUBSIDIARY HOWEVER AMONG OTHER THINGS THE INSPECTOR'S REPORT ALLEGES ALLIED GROUP USED A COOK ISLANDSREGISTERED BANK THAT IT CONTROLLED TO CIRCULATE FUNDS AMONG ITS ASSOCIATED COMPANIES WITHOUT DISCLOSING THE TRANSACTIONS TO SHAREHOLDERS COMPANIES IN THE GROUP WOULD DEPOSIT MONEY WITH THE BANK WHICH WOULD THEN LEND A LIKE AMOUNT TO ANOTHER COMPANY IN THE GROUP ALLIED GROUP AND ITS PRINCIPAL LISTED SUBSIDIARIES ALLIED INDUSTRIES INTERNATIONAL LTD AND ALLIED PROPERTIES HK LTD PLACED SHARES WITH COMPANIES CONTROLLED BY MR LEE AND MR CHAN INSTEAD OF WITH INDEPENDENT PARTIES AS STATED IN SOME CASES THE MONEY USED TO PURCHASE THESE SHARES CAME FROM ALLIED GROUP OR ITS ASSOCIATES THROUGH FIRST SOUTH CHINA BANK ALLOWING MR LEE TO CONSOLIDATE HIS CONTROL OVER THE GROUP WITHOUT PAYING FOR THE ADDITIONAL SHARES EXCELIN LTD A COMPANY INCORPORATED IN HONG KONG AND CONTROLLED BY MR LEE WAS USED TO SUPPORT ALLIED GROUP'S SHARE PRICE THROUGH ACTIVE TRADING REGULATING THE AVAILABILITY OF ALLIED GROUP SHARES IN THE MARKET TO COVER THE SUBSEQUENT TRADING LOSSES INCURRED BY EXCELIN TWO COMPANIES ASSOCIATED WITH ALLIED GROUP HELPED RECAPITALIZE EXCELIN BY PAYING A TOTAL OF 40 MILLION FOR NEWLY ISSUED EXCELIN SHARES THE INSPECTOR'S REPORT GOES ON IN MINDNUMBING DETAIL LISTING TRANSACTION AFTER TRANSACTION DEEMED QUESTIONABLE ENOUGH TO WARRANT ATTENTION MANY OF THE TRANSACTIONS RELATE TO COMPANIES NO LONGER UNDER ALLIED GROUP'S CONTROL SINCE THE INVESTIGATION BEGAN IN AUGUST 1992 THE COMPANY SOLD OFF SEVERAL OF ITS LISTED UNITS IN PART TO UNWIND THE LOANS OUTSTANDING THROUGH FIRST SOUTH CHINA BANK ACCORDING TO THE REPORT TWO OF THE COMPANIES SOLD SANTAI MANUFACTURING LTD AND TUNG WING STEEL HOLDINGS LTD WENT TO SHOUGANG CORP A MAINLAND CHINESE COMPANY THAT WAS EAGER FOR LISTED VEHICLES IN HONG KONG PARAMOUNT PRINTING GROUP LTD WAS SOLD TO HONG KONG'S SEAPOWER INTERNATIONAL HOLDINGS LTD GUARDFORCE SECURITY WAS SOLD TO FIRST PACIFIC LTD AND ASIA SECURITIES INTERNATIONAL LTD WENT TO A UNIT OF LIPPO LTD ALLIED GROUP IS LEFT WITH ITS TWO PRINCIPAL SUBSIDIARIES 63OWNED ALLIED INDUSTRIES INTERNATIONAL WITH OPERATING UNITS INVOLVED IN CHEMICALS TRANSPORTATION BUILDING MATERIALS AND FOOD PROCESSING AND 52OWNED ALLIED PROPERTIES WITH PROPERTY PROJECTS IN HONG KONG AND CHINA THE REPORT UNDERSCORES THE COLONY'S INTENT TO GET TOUGH WITH THOSE THAT FLOUT THE RULES BUT THE INVESTIGATION WAS NEITHER CHEAP NOR QUICK THE GOVERNMENTAPPOINTED INSPECTOR COOPERS & LYBRAND ACCOUNTANT NICHOLAS ALLEN TOOK 13 MONTHS TO COMPLETE THE REPORT AT A COST OF 46 MILLION HONG KONG DOLLARS US595 MILLION 9309200004 930920 GLENDALE FEDERAL BANK GLENDALE CALIF GLENDALE FEDERAL BANK SAID IT COMPLETED THE FINAL PHASE OF ITS RECAPITALIZATION PLAN WITH THE SALE OF 81 MILLION IN COMMONSTOCK RIGHTS THE PLAN RAISED 451 MILLION AND BRINGS GLENDALE INTO COMPLIANCE WITH FEDERAL CAPITAL REQUIREMENTS AS PART OF THE PLAN GLENFED INC THE FORMER PARENT COMPANY OF GLENDALE FEDERAL BANK WAS MERGED INTO GLENDALE INVESTMENT CORP A SUBSIDIARY OF THE BANK 9309200003 930920 INTERNATIONAL RUBLE FALLS AGAINST DOLLAR MOSCOW THE RUBLE DROPPED AGAINST THE DOLLAR AT FRIDAY'S FIXING AT THE MOSCOW INTERBANK CURRENCY EXCHANGE PRESSURED BY A DROP IN SUPPLY OF THE US CURRENCY THE DOLLAR WAS FIXED AT 1017 RUBLES UP FROM 1010 RUBLES THURSDAY TRADERS SAID UNEXPECTEDLY LIGHT DEMAND FOR THE RUBLE AT THE FIXING UNDERMINED THE RUSSIAN CURRENCY AT THURSDAY'S RATE INITIAL SUPPLY OF DOLLARS WAS 852 MILLION WELL BELOW DEMAND OF 986 MILLION THE GAP BETWEEN SUPPLY AND DEMAND USUALLY VARIES BETWEEN 3 MILLION AND 8 MILLION PARTICIPANTS NOTED ILYA KHOKHRYAKOV HEAD OF RUBLE TRADING AT TOKOBANK A MAJOR COMMERCIAL BANK SAID COMPANIES WITH DOLLARS ARE HOLDING THEM TO INVEST IN IMPORTED GOODS TO SELL HERE STEADY INFLATION HAS ENCOURAGED THEM TO EXPECT FURTHER PRICE RISES HE NOTED PARTICIPANTS SAID CENTRAL BANK INTERVENTION FRIDAY WAS LIMITED ALLOWING THE DOLLAR TO RISE 9309200002 930920 TAIWAN AEROSPACE TALKS WITH BRITISH SEE LITTLE PROGRESS SPECIAL TO THE WALL STREET JOURNAL EARLE HO CHAIRMAN OF TAIWAN AEROSPACE DECLINED TO ELABORATE ON WHAT BARRED THE TWO COMPANIES FROM SIGNING A FINAL CONTRACT IT ISN'T MERELY A MATTER OF SETTING THE TIME FOR A DEAL MR HO TOLD REPORTERS THERE ARE A LOT OF DIFFICULT SITUATIONS MEANWHILE MR HO AND GENERAL MANAGER DENNY KO SAID THEY PLANNED TO RESIGN FROM TAIWAN AEROSPACE LATER THIS YEAR BRITISH AEROSPACE AND TAIWAN AEROSPACE LAST MONTH ANNOUNCED THEY HAD RESOLVED A FINANCING DISPUTE TO RESCUE THEIR PLANNED JOINT VENTURE TO PRODUCE PASSENGER JETS THE TAIWAN GOVERNMENT HAS AGREED TO INCREASE ITS STAKE IN TAIWAN AEROSPACE TO 39 FROM 29 TO SUPPORT THE PROJECT WITH BRITISH AEROSPACE A TEAM FROM TAIWAN INCLUDING TAIWAN AEROSPACE OFFICIALS AND LOCAL BANKERS LEFT FOR LONDON LAST WEEK TO DISCUSS FINAL DETAILS OF THE VENTURE EARLIER ON FRIDAY LI CHINYUNG A LEGISLATOR OF THE OPPOSITION DEMOCRATIC PROGRESSIVE PARTY ACCUSED TAIWAN'S PRESIDENT LEE TENGHUI OF IMPROPER SUPPORT OF THE VENTURE MR LI CLAIMED THE PRESIDENT USED HIS POWER TO FORCE THE DEAL WHICH THE LEGISLATOR SAID WOULD BE A FINANCIAL BURDEN FOR TAIWAN THE PRESIDENTIAL OFFICE DENIED THE CHARGES MR LI PUBLICIZED LETTERS HE CLAIMED WERE WRITTEN IN AUGUST BY JOHN CAHILL CHAIRMAN OF BRITISH AEROSPACE TO ECONOMICS MINISTER CHIANG PINKUNG THE LETTERS CRITICIZED THE TAIWAN GOVERNMENT FOR FAILING TO PROVIDE LOANS FOR THE PLANNED VENTURE 9309200001 930920 INTERNATIONAL EXCOMMUNISTS TAKE THE LEAD IN POLISH VOTE MARKET REFORMS EXPECTED TO CONTINUE DESPITE UNHAPPINESS OF PEOPLE BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WARSAW TWO PARTIES WITH ROOTS IN COMMUNISM APPEARED TO COME OUT OF POLAND'S NATIONAL ELECTION WITH OVER HALF THE SEATS IN PARLIAMENT IT WAS UNLIKELY HOWEVER THAT THEY WOULD JOIN FORCES IN GOVERNMENT INSTEAD POLES MAY GET YET ANOTHER RICKETY COALITION THAT WOULD TRY TO KEEP THE TRANSITION TO CAPITALISM ON TRACK POLAND'S REFORMED COMMUNISTS THE DEMOCRATIC LEFT ALLIANCE TOOK 18 OF THE VOTE ACCORDING TO EXIT POLLS THE PEASANTS PARTY ANOTHER RECREATED CREATURE OF THE PAST WAS PROJECTED TO WIN 14 TOGETHER THE TWO GROUPS MIGHT HOLD AT LEAST 52 OF THE SEATS IN THE POWERFUL 460SEAT LOWER HOUSE IT'S A VERY SATISFYING MOMENT SAID ALEKSANDER KWASNIEWSKI LEADER OF THE LEFT ALLIANCE BUT WE KNOW HOW DIFFICULT THE PROBLEMS ARE WE'D LIKE TO BE VERY PRAGMATIC THIS ELECTION'S AIM WAS TO CONTINUE REFORMS AND TO FIND SOLUTIONS FOR OUR SOCIAL PROBLEMS THE DEMOCRATIC UNION A PARTY OF INTELLECTUALS THAT GREW OUT OF THE SOLIDARITY MOVEMENT WAS LEFT IN THIRD PLACE WITH 12 OF THE VOTE OR 16 OF THE SEATS THE UNION WAS LARGELY RESPONSIBLE FOR THE DESIGN OF POLAND'S REFORMS AND DOMINATED THE MINORITY GOVERNMENT OF PRIME MINISTER HANNA SUCHOCKA WHICH FELL BY ONE VOTE IN JUNE AS MANY AS SIX OTHER PARTIES WERE PREDICTED TO WIN BETWEEN 5 AND 7 OF THE SEATS OPENING THE WAY TO A VARIETY OF POSSIBLE COALITIONS EXCLUDING AT LEAST ONE LEFTIST PARTY FIFTEEN PARTIES APPEARED ON A BALLOT MEANT TO SIMPLIFY POLAND'S VOTING SYSTEM IN THE LAST NATIONAL ELECTION TWO YEARS AGO MORE THAN 200 PARTIES RAN TO WIN SEATS THIS TIME A PARTY NEEDED AT LEAST 5 OF THE VOTE COALITIONS NEEDED 8 THE ARDENT CAPITALISTS OF THE LIBERAL PARTY BARELY APPEARED TO MAKE THE CUT WITH JUST 5 THE MOST RABID ANTICOMMUNISTS THE CENTER ALLIANCE MAY WIN ONLY 4 IF FEWER PARTIES SURVIVE IN THE FINAL COUNT THE LARGER ONES WILL OBTAIN EVEN MORE SEATS FULL OFFICIAL RESULTS WON'T BE KNOWN UNTIL LATER THIS WEEK BUT SUNDAY NIGHT'S ESTIMATES SEEMED TO CONFIRM THE REFORMERS' FEARS THAT MANY POLES HAD REACHED THE END OF THEIR PATIENCE WITH RECESSION INFLATION AND GROWING INEQUALITIES A LOW TURNOUT OF ONLY 45 WAS FURTHER EVIDENCE OF DISINTEREST DESPITE THE BIRTH OF A VIBRANT PRIVATE SECTOR AND A SPURT OF POSITIVE GROWTH THIS YEAR A SWATH OF SOCIETY HAS SEEN ITS LIVING STANDARDS DROP AND SECURITY VANISH THE LEFT SYMPATHIZED WITH THEIR DISCONTENT THE LEFT ALLIANCE CAMPAIGNED AGAINST THE WHOLESALE PRIVATIZATION OF STATE INDUSTRY AND THE RESULTING UNEMPLOYMENT NEARING 16 LESZEK MILLER THE PARTY'S VICE CHAIRMAN LAUGHED RECENTLY AT THE SINGLEMINDED PUSH TO SELL STATE COMPANIES IT'S A JOKE HE SAID IT REMINDS ME OF THE HYPOTHESIS THAT EVERYTHING SHOULD BE NATIONALIZED CRITICS OF THE LEFT ALLIANCE FIND ITS POLICIES DIFFICULT TO DEFINE MR KWASNIEWSKI THE LEADER OF THE LEFT ALLIANCE IS A GENUINE REFORMER WHO PERFORMS CONVINCINGLY IN DEBATES WITH POLAND'S LAISSEZFAIRE CAPITALISTS YET SOME OPPONENTS SAY HE REPRESENTS THE VENEER OF A PARTY DOMINATED BY OLD APPARATCHIKS MANY OF WHOM HAVE MOVED INTO BUSINESS BUT HAVEN'T LOST THE YEN TO PULL POLITICAL STRINGS DESPITE THE RHETORIC HOWEVER THE LEFT ALLIANCE PROVIDED CRUCIAL VOTES IN PARLIAMENT EARLIER THIS YEAR TO IMPLEMENT A PROGRAM OF MASS PRIVATIZATION IN POLAND THAT LEADS MANY OF ITS OPPONENTS TO DOUBT THAT IT WILL BECOME A LOOSE CANNON NO GOVERNMENT HERE HAS YET STRAYED FAR FROM THE FREEMARKET MAKEOVER PRESCRIBED BY THE FIRST FINANCE MINISTER LESZEK BALCEROWICZ THE CABINET OF ANTICOMMUNISTS AND RELIGIOUS NATIONALISTS THAT CAME TO POWER AFTER A 1991 ELECTION IN FACT PURSUED AN ECONOMIC ROAD THAT IN MANY WAYS WAS FURTHER TO THE LEFT THAN THE EXCOMMUNISTS PROPOSE NOW THE ECONOMY HAS HAD AN ASTONISHING CONTINUITY SAYS ALEKSANDER SMOLAR A FOREIGN POLICY ADVISER TO MS SUCHOCKA I DON'T EXPECT NEGATIVE SPILLOVER EFFECTS IN THE ECONOMY EVEN IF THE EXCOMMUNISTS FORM A GOVERNMENT AND I'M SURE THEY DON'T WANT TO DO THAT EVEN THEN ECONOMIC LIBERALS WILL CONTROL THE FINANCE MINISTRY AND THE MINISTRY OF PRIVATIZATION THE ONLY WAY THE LEFT ALLIANCE COULD FORM A GOVERNMENT IT SEEMS IS WITH ITS ERSTWHILE ASSOCIATES THE PEASANTS PARTY THE PEASANTS PARTY SAYS IT WOULD PREFER A CENTERLEFT COALITION INCLUDING THE DEMOCRATIC UNION THE PARTY OF MS SUCHOCKA THE OUTGOING PRIME MINISTER IF THE LEFT ALLIANCE DOES GIVE UP HOPE OF FORMING A GOVERNMENT A MORE CONGENIAL COALITION MIGHT BE FORMED WITH THE PEASANTS THE DEMOCRAT UNION AND THE UNION OF LABOR OR THE LIBERALS AT ITS CORE A GROUP INSPIRED BY PRESIDENT LECH WALESA THE NONPARTISAN BLOC TO SUPPORT REFORM MIGHT ALSO JOIN IT RECEIVED A POSSIBLE 5 OF THE VOTE BUT THE DEMOCRATIC UNION ISN'T SHOWING MUCH ENTHUSIASM FOR A GOVERNMENT COALITION WITH THE PEASANTS IN A LEADING ROLE YOU CAN'T RUN A GOVERNMENT OF POSTINDUSTRIAL REFORM WITH A PARTNER THAT WANTS TO DEFEND AGRARIAN PRINCIPLES SAYS PIOTR NOWINAKONOPKA A DEMOCRATIC UNION LEADER WE'D HAVE TO RETURN TO THE 19TH CENTURY A BETTER POSSIBILITY HE ARGUED MIGHT BE A MINORITY GOVERNMENT LIKE THE ONE MS SUCHOCKA HELD TOGETHER FOR A YEAR THAT WOULD PUT POLAND'S POLITICIANS BACK WHERE THEY STARTED FROM WITH TWO DIFFERENCES THEY WILL HAVE TO CONTEND WITH A VOCAL RIGHTWING OPPOSITION OUTSIDE PARLIAMENT AND A POWERFUL LEFTWING OPPOSITION ON THE INSIDE WHAT DO YOU WANT FROM US MR NOWINAKONOPKA ASKED IT TOOK 40 YEARS FOR THE FRENCH TO GET RID OF THEIR COMMUNISTS IN PARLIAMENT WHY EXPECT THE POLES TO GET RID OF THEM IN FOUR DANIEL MICHAELS CONTRIBUTED TO THIS ARTICLE 9309200114 930818 THE ROAD TAKEN TWO BROTHERS' LIVES BOTH WHITE COLLAR YET WORLDS APART WHILE ALEX HUTCHINS KEEPS HIS DREAMS AND POEMS GLENN AMASSES A FORTUNE I FIND IT MORALLY REPUGNANT' BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL MORRISTOWN TENN WHEN ALEX HUTCHINS ARRIVED LAST YEAR AT ANCHOR ADVANCED PRODUCTS INC A PLASTICS MAKER HERE HE SAW FACTORY WORKERS UNDER WILTING PRESSURE HE SOON LEARNED WHY THE COMPANY HAD RECENTLY BEEN SOLD IN A LEVERAGED BUYOUT AND WAS STRUGGLING UNDER HEAVY DEBT PAYMENTS AS MR HUTCHINS SAW IT HIS JOBTRAINING WORKERS TO MAKE QUALITY PRODUCTS IN THE FUTURE HAD A CERTAIN FUTILITY ABOUT IT I REALIZED MOST OF THESE WORKERS WERE DESTINED TO BE LOSERS HE SAYS MANY WOULD GET LAID OFF AND THIS COMPANY WOULD EVENTUALLY BE SOLD OFF SO THE LBO INVESTORS COULD MAKE THEIR KILLING THEN MR HUTCHINS WHO MIXES EASILY WITH THE RANK AND FILE FOUND OUT MORE THAN HE WANTED TO KNOW I DISCOVERED IT WAS MY BROTHER'S LBO FIRM THAT DID THE DEAL IT MADE ME NAUSEOUS MY GOD IT'S MY OWN FLESH AND BLOOD FOR MOST OF THEIR LIVES THE TWO BROTHERS WALKED DIVERGENT PATHS NOW THOSE TRAILS HAVE CROSSED ALEX HUTCHINS 45 YEARS OLD CAME OF AGE IN THE 1960S AND IS STILL WRAPPED IN THE COUNTERCULTURE RIGHT DOWN TO HIS BLACK TSHIRTS WEATHERED IDEALS AND NOTEBOOK FILLED WITH SCRIBBLED POETRY THOUGH HE NOW HAS AN ANNUAL SALARY OF ABOUT 50000 A YEAR HIS YEARLY INCOME SINCE COLLEGE AS HE SHIFTED JOBS MOSTLY IN THE NONPROFIT SECTOR HAS AVERAGED ABOUT 16000 HE RENTS A SIXROOM HOUSE FOR 350 A MONTH IN EASTERN TENNESSEE AND HAS ALMOST NO SAVINGS TO FALL BACK ON GLENN HUTCHINS 37 SPORTS THE PINSTRIPES AND WELLCOIFED LOOK OF THE 1980S THE DECADE WHEN HE HIT FULL STRIDE AS A LEVERAGEDBUYOUT SPECIALIST HE MAKES MORE THAN 1 MILLION A YEAR LIVES IN A 4000SQUAREFOOT VICTORIAN HOME WEARS 1000 SUITS AND WORKS HIGH IN AN OFFICE TOWER WITH A VIEW OF BOSTON HARBOR ALEX AND I HAVE MADE DIFFERENT CHOICES IN OUR LIVES SAYS GLENN A MANAGING DIRECTOR OF THOMAS H LEE CO ALEX HUTCHINS CALLS THEIR LIVES TWO SIDES OF THE AMERICAN EXPERIENCE THE BROTHERS REPRESENT A RELATIVELY NEW ECONOMIC REALITY ACCORDING TO A NUMBER OF INCOME ANALYSTS AS A RESULT OF SHIFTING LABORMARKET DEMAND CHANGES IN PUBLICSPENDING PRIORITIES AND NEARLY TWO DECADES OF GOOD TIMES FOR THOSE WHO MAKE THEIR LIVING FROM FINANCIAL ASSETS THESE RESEARCHERS SEE GROWING INCOME GAPS AMONG WHITECOLLAR WORKERS IN 1970 YOU JUST DIDN'T FIND TWO PEOPLE OF ROUGHLY EQUAL EDUCATION WHERE ONE MADE 20 TIMES WHAT THE OTHER MADE SAYS STEVEN DAVIS A PROFESSOR AT UNIVERSITY OF CHICAGO'S GRADUATE BUSINESS SCHOOL WHO STUDIES COMPENSATION THE REAL ACCELERATION IN PAY FOR CERTAIN PROFESSIONS HAS LEFT US WITH A SITUATION WHERE THE RELATIVE PENALTIES FOR GOING INTO SOME OF THE LOWER PAYING SOCALLED HIGHCOMMITMENT PROFESSIONS HAS GONE WAY UP MALE WORKERS WITH FOUR YEARS OF COLLEGE HAD MEDIAN EARNINGS OF 42524 IN 1990 UP ONLY 4 FROM 1980 ADJUSTED FOR INFLATION ACCORDING TO THE LABOR DEPARTMENT THAT MODEST RISE REFLECTS STAGNATION IN LOWERPAYING JOBS WHILE CERTAIN PROFESSIONS AT THE HIGHEST END REALLY SAW THEIR PAY SKYROCKET SAYS DANIEL HECKER AN ECONOMIST AT THE DEPARTMENT NO GOVERNMENT INDEX EXISTS TO COMPARE SUCH DIFFERENCES BUT CHIEF EXECUTIVES AT THE NATION'S 200 LARGEST COMPANIES HAD MEDIAN INCOME LAST YEAR OF 27 MILLION INCLUDING STOCK OPTIONS 143 TIMES THE AVERAGE WORKER'S PAY OF 18925 ACCORDING TO COMPENSATION EXPERT GRAEF CRYSTAL THAT COMPARES WITH 35 TIMES THE AVERAGE WORKER'S PAY IN THE MID1970S AVERAGE PAY FOR INSTITITUTIONAL SECURITIES BROKERS IS NOW 271000 UP 139 SINCE 1981 SAYS THE SECURITIES INDUSTRY ASSOCIATION A SURVEY BY AMERICAN LAWYER MAGAZINE PUTS THE AVERAGE YEARLY PROFIT FOR A PARTNER AT ONE OF THE 100 TOPGROSSING LAW FIRMS AT 406000 AN AVERAGE SCHOOLTEACHER MEANWHILE EARNED 35334 IN 199293 WHILE A COLLEGE FACULTY MEMBER MADE 46270 ACCORDING TO UNION DATA MEDIAN INCOME FOR SOCIAL WORKERS IN 1992 SAYS THE LABOR DEPARTMENT WAS 25428 ONCE HOWEVER IT WAS EASIER FOR FRIENDS OR RELATIVES WHO MADE THEIR SEPARATE CHOICES TO REACH AN AMICABLE STANDOFF ONE PARTY HAD MORE THINGS THE OTHER MORE FULFILLMENT BUT AS INCOME DIFFERENCES GROW SO DOES THE POTENTIAL FOR RESENTMENT AND FEELINGS OF SUPERIORITY ON EACH SIDE I THINK WHAT MY LITTLE BROTHER DOES DOES MORE TO HURT THIS COUNTRY THAN ANYTHING ELSE I CAN THINK OF SAYS ALEX WHOSE 220 POUNDS AND 6FOOT1 FRAME TAKE UP MOST OF A SMALL CLUTTERED OFFICE ON ANCHOR'S FACTORY FLOOR IT'S WHAT'S HELPED TURN US INTO A COUNTRY OF A FEW VAST WINNERS AND MORE AND MORE LOSERS GLENN SAYS HIS WORK AS AN LBO SPECIALIST IMPOSES COSTCONTROL AND PRODUCTIVITY DISCIPLINES THAT SERVE THE COUNTRY'S NEED TO BE COMPETITIVE AS FOR HIS VIEW OF ALEX LOOK MY OLDER BROTHER IS FINALLY GETTING HIS LIFE TOGETHER AFTER A LONG SEARCH WHICH HAS NOT SERVED HIM PARTICULARLY WELL THE HUTCHINS BROTHERS GREW UP IN A STURDY BRICK HOUSE IN THE NORTHERN VIRGINIA SUBURBS OF WASHINGTON WHERE THEIR FATHER JAMES WAS AN AGRICULTURE DEPARTMENT OFFICIAL THEIR DAD SAYS GLENN ENFORCED THE IRON TRIANGLE OF HOME SCHOOL AND CHURCH AND ROCKSOLID VALUES OF HARD WORK FROM EARLY ON ALEX STRUGGLED AGAINST CONFORMITYJOY RIDING IN A NEIGHBOR'S CAR SNEAKING CIGARETTES ON HIS PAPER ROUTE EVEN FORGING LETTERS THAT HELPED HIM BECOME AN EAGLE SCOUT GLENN DIDN'T SHARE SUCH ADVENTURES MY ABIDING MEMORY OF CHILDHOOD WAS ALEX POUNDING THE HELL OUT OF ME GLENN RECALLS WITH A CHUCKLE YOU KNOW I WAS PUDGY KID I ALWAYS LOOKED UP TO ALEX HE WAS A BIG NATURAL ATHLETE ARTISTIC AND BOLD I WANTED TO BE LIKE HIM WHEN WASHINGTON ERUPTED IN RIOTS AFTER THE 1968 ASSASSINATION OF MARTIN LUTHER KING JR ALEX RUSHED DOWNTOWN TO SEE THE SPECTACLE OF IT ALL LEAVING HIS FAMILY SICK WITH WORRY GLENN SAYS HE STOOD ON THE ROOF OF OUR HOUSE WATCHING WASHINGTON BURN IN THE DISTANCE AND REMEMBERS HIS PARENTS LATER TALKED ABOUT THESE BEING DANGEROUS TIMES WANTING ME TO BE SAFE AND NOT END UP LIKE ALEX SOON GLENN WAS OFF TO LAWRENCEVILLE SCHOOL AN EXCLUSIVE NEW JERSEY PREPARATORY ACADEMY AND THEN TO HARVARD ALEX WENT TO PUBLIC HIGH SCHOOL DEMONSTRATED AGAINST THE VIETNAM WAR AND WAS THROWN OUT OF ELON COLLEGE IN NORTH CAROLINA FOR PUBLISHING A LAMPOON OF THE COLLEGE PRESIDENT HE RETURNED FLUNKED OUT JOINED THE NAVAL RESERVES TO AVOID THE DRAFT THEN WENT BACK TO ELON AND GOT HIS BACHELOR'S DEGREE WITH HIGH MARKS IN 1974 HAVING WON SOME POETRY CONTESTS ALEX TOOK OVER AN ARTS COUNCIL IN RURAL NORTH CAROLINA AND PUT IN LONG HOURS MANAGING THEATER PRODUCTIONS ADULTEDUCATION CLASSES AND CONCERTS BUT THE PAY 9000 TO START AND 18000 BY THE MID1980S LEFT ME PRETTY MUCH DESTITUTE HE RECALLS HE HIS WIFE BARBARA AND DAUGHTER JOANNA LIVED IN A SMALL RENTED HOUSE THOSE WERE THE YEARS WE DID WITHOUT THINGS LIKE VACATIONS ANNIVERSARY GIFTS OR DINING OUT SAYS ALEX JOANNA'S CLOTHES AND TOYS WERE USUALLY SECONDHAND A DRUM SET SHE PLEADED FOR AFTER WINNING A SPOT IN THE JUNIORHIGH BAND WAS UNAFFORDABLE THOSE TYPES OF THINGS MY PARENTS EASILY COULD BUY FOR ME AS A KID BUT I COULDN'T IT TROUBLED ME ALEX SAYS AFTER COLLEGE GRADUATION GLENN TOOK A POSITION IN CHEMICAL BANK'S TRAINING PROGRAM HE MARRIED IN 1983 RETURNED TO HARVARD FOR HIS MBA AND LAW DEGREES AND JOINED THE THOMAS LEE FIRM IN 1985 ONE LESSON FROM SCHOOL STUCK WITH ME CAPITALISM REWARDS THE OWNER OF CAPITAL SAYS GLENN SITTING IN THE BOOKLINED STUDY OF A RESTORED INN HE RENTS FOR THE SUMMER ON BUZZARD'S BAY IN MARION MASS I ALWAYS KNEW WHERE I WANTED TO GET TO A POSITION OF OWNERSHIP WITH MR LEE THAT WISH CAME TRUE THE FIRM GREW FAST BY ENGINEERING BUYOUTS OF MIDSIZE COMPANIES A FEW PAID HANDSOME RETURNS AND GLENN WHO RECEIVED SHARES IN THE ACQUIRED COMPANIES SAW HIS FORTUNES SOAR GROWING UP WE NEVER WANTED FOR MUCH BUT MY FATHER NEVER HAD A SPARE DOLLAR HE SAYS I WANTED IT TO BE DIFFERENT FOR ME BEFORE LONG THERE WERE REGULAR VACATIONS TO EUROPE AND THE CARIBBEAN HIS WIFE DEBBIE GAVE UP HER JOB IN PUBLIC RELATIONS IN 1987 TO PURSUE A MASTER'S DEGREE THAT LAUNCHED HER ON A CAREER IN SOCIAL WORK GLENN BEGAN DABBLING IN CHARITIES AND THE ARTS HE RAISED MONEY FOR THE DEMOCRATIC PARTY AND LAST YEAR TOOK OFF FIVE MONTHS TO WORK ON THE CLINTON CAMPAIGN AND TRANSITION TEAM BECOMING ACQUAINTED WITH WHITE HOUSE AIDE IRA MAGAZINER AND DEPUTY TREASURY SECRETARY ROGER ALTMAN THOUGH FRIENDS SAY HE HAS DISCUSSED POSSIBLE POSITIONS WITHIN THE ADMINISTRATION HE WON'T COMMENT OVER THE YEARS THE BROTHERS' RELATIONSHIP BEGAN TO CRACK HERE I WAS WORKING LIKE HELL TRYING TO MAKE A DIFFERENCE AND GLENN DOING SOMETHING I THINK IS REPREHENSIBLE IS MAKING IN A WEEK WHAT I'D MAKE IN A YEAR SAYS ALEX IT MADE ME WILD FAMILY GATHERINGS BECAME TORTURE FOR ALEX FOR CHRISTMAS HE SAYS I'D BUY LITTLE 5 AND 10 GIFTS ALL I COULD AFFORD THAT NO ONE WOULD EVER SAY ANYTHING ABOUT GLENN GAVE EXPENSIVE PRESENTS THAT EVERYONE FAWNED OVER GLENN SAW ANOTHER SIDE SAYING HIS GIFTS SOMETIMES PALED NEXT TO ALEX'S MORE CREATIVE PRESENTS LIKE ONE CHRISTMAS WHEN HE PAINTED A MURAL ON MY PARENTS' DININGROOM WALL EXCEPT FOR THE HOLIDAYS THE BROTHERS RARELY SAW EACH OTHER GLENN WOULD SAY FLY UP TO BOSTON WE HAVE A BIG HOUSE PLENTY OF ROOM' SAYS ALEX OF COURSE I COULDN'T AFFORD A FLIGHT BUT I WAS ASHAMED TO SAY THAT AS TO TRAVELING SOUTH GLENN SAYS I HAVE BEEN WORKING SO HARD OFTEN 70HOUR WEEKS THAT THERE ARE SOME THINGS EVEN RELATING TO MY FAMILY THAT I HAVEN'T HAD TIME FOR WITH AT LEAST ONE EXCEPTION FOR HIS PARENTS' 50TH WEDDING ANNIVERSARY GLENN FLEW THE ENTIRE CLAN TO PALM BEACH FLA PUT EVERYONE UP IN 650ANIGHT ROOMS AT THE BREAKERS HOTEL AND TREATED THEM TO AN EXPENSIVE DINNER BUT BY COFFEE AND DESSERT ALEX AND GLENN WERE IN AN ARGUMENT SO VIGOROUS THAT OTHER PEOPLE IN THE RESTAURANT THOUGHT WE'D COME TO BLOWS RECALLS ALEX HE SAYS THE DISAGREEMENT WAS ABOUT THE PAIN CAUSED BY LEVERAGED BUYOUTS AND THEN IT TOOK OFF FROM THERE GLENN VAGUELY RECALLS THE DISPUTE BUT OBSERVES THAT ALEX AND HE OFTEN DIFFER IN GLENN'S VIEW THE WORLD IS SEPARATED BETWEEN DOERS AND PHILOSOPHERS DEAL MAKERS AND MANAGERS WINNERS AND LOSERS AND I THINK I'M IN THE FORMER CATEGORY SOMEONE WHO FOCUSES ON OUTCOMES THEN FINDS A WAY TO GET THERE ALEX HAS SOMETIMES BEEN IN THE LATTER IN TRAINING WORKERS THOUGH I THINK HE'S FINALLY FOUND SOMETHING HE ENJOYS SOMETHING HE'S GOOD AT AND THAT SOCIETY VALUES BUT AT HEART HE'S A POET A PHILOSOPHER A LOSER NO I ADMIRE WHAT HE DOES I RESPECT WHAT HE DOES HIS COMMITMENT TO WHAT HE BELIEVES IN ALEX SAYS THAT IN THE HUTCHINS FAMILY GLENN IS SEEN AS A WINNER WHILE I'M SORT OF MEDIOCRE BUT ALEX INSISTS HE WOULDN'T TRADE PLACES WHAT GLENN DOES IS PARASITIC AND EXPLOITATIVE HOWEVER HE WANTS TO JUSTIFY IT HE USES PEOPLE I FIND THAT MORALLY REPUGNANT YEARS OF STRUGGLE TOOK THEIR TOLL ON ALEX'S NOTION OF MEANINGFUL WORK AFTER GETTING HIS MBA AT NIGHT SCHOOL HE LANDED A 27000AYEAR POST IN 1990 AS AN ASSISTANT PROFESSOR AT WALTERS STATE COMMUNITY COLLEGE IN MORRISTOWN HIS HOME WAS FIVE HOURS AWAY IN NORTH CAROLINA WHERE HIS WIFE WORKED AS A STATE UNEMPLOYMENT COUNSELOR FOR A TIME HE SAW HER ONLY ON WEEKENDS UNTIL THEY SEPARATED LAST YEAR THAT COMMUTE JUST NEVER SEEING EACH OTHER PUT STRAINS ON OUR MARRIAGE THAT WE COULDN'T AFFORD SAYS ALEX WITH JOANNA AN HONORS STUDENT REACHING COLLEGE AGE FINANCIAL PRESSURES MOUNTED GLENN OFFERED TO HELP HER GET INTO HARVARD AND TO PAY HER WAY ALEX CHAFED I TOLD HIM IF YOU GIVE HER ONE CENT I'LL NEVER TALK TO YOU AGAIN HE SAYS JOANNA ATTENDS THE UNIVERSITY OF NORTH CAROLINA IT WASN'T JUST A MATTER OF PRIDE FOR ME I DIDN'T WANT HER TO BECOME ENAMORED OF HIS MONEY AND HIS IDEA THAT MONEY IS WORTH GETTING AT ANY COST GLENN SAYS THAT ALEX TYPICALLY OVERREACTED TO THE COLLEGE ISSUE AS HE SOMETIMES DOES WHEN MONEY IS INVOLVED HE'S GOT A PROBLEM THERE HE STILL THINKS MONEY IS THE ROOT OF ALL EVIL BUT HE WOULDN'T MIND HAVING A LITTLE MORE OF IT YOU KNOW HE'S INCREDIBLY FRUGAL PINCHES EVERY PENNY ALEX HOOKED UP WITH ANCHOR ADVANCED PRODUCTS AFTER MOONLIGHTING AS A CONSULTANT WHEN HE WAS AT WALTERS STATE HIS CREED BECAME TOTAL QUALITY MANAGEMENT AN ORGANIZATIONAL PHILOSOPHY THAT STRESSES LONGRANGE QUALITY INITIATIVES AHEAD OF SHORTTERM PROFITS ANCHOR SIGNED UP ALEX AS A PARTTIME CONSULTANT EARLY LAST YEAR WITH MORALE SLIPPING AND PRODUCT DEFECTS RISING ANCHOR NEEDED TO MAKE WORKERS UNDERSTAND WHAT QUALITY WAS ALL ABOUT SAYS JOHN NUGENT CHIEF FINANCIAL OFFICER ALEX IS VERY INSPIRATIONAL HE CAN TALK TO WORKERS THEY TRUST HIM ALTHOUGH ALEX GOT HIS JOB AT ANCHOR ON HIS OWN HE HAS WONDERED WHETHER HIS BROTHER'S POSITION KEEPS HIM PROTECTED IN SOME WAY HE FRETS THAT ONE OF HIS WORST FEARS MAY HAVE COME TO PASS THAT HE IS BEHOLDEN TO GLENN IF I EVER FIND OUT THAT I'M BEING KEPT ON BECAUSE OF GLENN I'D QUIT ON THE SPOT SAYS ALEX BUT HE ADDS QUALITY MANAGERS LIKE ME DON'T LAST LONG AT COMPANIES LIKE ANCHOR I'M NOT COUNTING ON LASTING TOO LONG HERE IN THE PAST TWO YEARS ANCHOR HAS LAID OFF ABOUT 200 OF THE 450 WORKERS IN ONE MORRISTOWN PLANT WHILE ADDING ABOUT THAT MANY AT A PLANT ACROSS TOWN WORKERS AT BOTH FACILITIES ARE NOW PUTTING IN SEVENDAY WEEKS TO MEET HIGHER OUTPUT QUOTAS ANCHOR SAYS THERE MAY BE MORE LAYOFFS AMONG ITS 1200 US EMPLOYEES AS SOME PRODUCTION MOVES TO MEXICO MR NUGENT THE CFO SAYS MANAGEMENT HAS MADE NO BONES ABOUT THE FACT THAT WE'D PUSH HARD TO IMPROVE THIS COMPANY AND THEN SELL IT OFF ONE MORNING ALEX SLUMPS IN HIS CHAIR AND REFLECTS ON THESE FACTS MORE AND MORE LATELY I FEEL LIKE I'M BEING USED JUST TO MOTIVATE WORKERS TO MAKE THEM FEEL LIKE THEY'RE WORTH SOMETHING WHEN IN THE SCHEME OF THINGS HERE THEY'RE NOT WORTH VERY MUCH HE SAYS ONCE THIS REALIZATION WOULD HAVE MADE ME ANGRY HE SAYS NOW IT JUST MAKES ME SAD A THOUSAND MILES AWAY GLENN CONSIDERS HIS BROTHER AT ANCHOR DEBT CAN BE A HARSH TASKMASTER HE SAYS THERE'S A BRUTAL SELECTION PROCESS GOING ON IN THIS COUNTRY AS WE TRY TO COMPETE GLOBALLY THOSE OF US WHO INVEST IN COMPANIES ARE DEMANDING THEY BE EFFICIENT THE EFFECT ON THE FACTORY FLOOR IS THE CREATING OF WINNERS AND LOSERS AND SOME PAIN ALL THAT PUTS PEOPLE LIKE ALEX UNDER A LOT OF PRESSURE GLENN'S DAYS ARE A FLURRY OF COMPLEX DECISIONS GENERALLY MADE SWIFTLY AND UNDER PRESSURE ONE DAY HE STRIKES A BARGAIN WITH CREDITORS TO PULL ONE OF MR LEE'S COMPANIES FROM BANKRUPTCY JUMPS IN HIS BLACK LEXUS COUPE DRIVES TO THE SUMMER HOUSE SCREAMING INTO A CAR PHONE TAKES HIS THREEYEAROLD SON JAMES SAILING FOR AN HOUR GRABS DINNER AND WORKS UNTIL MIDNIGHT THE NEXT MORNING IT IS MORE OF THE SAME GLENN IS PROUD OF TIME SPENT HELPING LOCAL CHARITIES AND THE CLINTON CAMPAIGN AND OF HIS WORK AS A MEMBER OF THE BOARD OF CARE THE RELIEF ORGANIZATION HE SAYS THAT HE HAS BEEN THERE FOR ALL THE IMPORTANT TIMES WITH MY FAMILY I WAS THERE WHEN MY SON WAS BORN YOU KNOW IT WAS LONG LABOR AND I HAD TO MAKE SOME CALLS ON A DEAL I WAS DOING BUT I WAS THERE AT THE BIRTH THAT'S THE IMPORTANT PART HE ADDS I DON'T THINK I'M INSENSITIVE THOUGH ALEX CLEARLY IS THE ONE WHO CARES MORE ABOUT PEOPLE'S EMOTIONS I'M MORE AN ORGANIZER OF THE FAMILY I MAKE SURE THINGS ARE MANAGED WELL THIS TOO CONCERNS ALEX HIS FATHER NOW 76 HAS BEEN SICK WITH AN ANEMIA CONDITION FOR THE PAST YEAR ALEX IS DESIGNATED AS EXECUTOR OF HIS FATHER'S ESTATE BUT SAYS GLENN HAS BEEN TALKING TO MY MOM SAYING HE'S BETTER AT THIS SORT OF THING SUCCESSFUL ORGANIZED A LAWYER AND ALL THAT HE'LL WANT TO TAKE OVER MY ROLE WHILE GLENN ALLOWS THAT HIS BROTHER'S DESIGNATION AS EXECUTOR IS A BIT COUNTER TO EXPECTATIONS HE SAYS HE WILL SUPPORT ALEX IN THAT ROLE AND OFFER WHATEVER EXPERTISE I CAN BUT THE YEARS OF BROTHERLY HARANGUES HAVE HAD AN EFFECT ON ME SAYS GLENN WHO WONDERS WHAT IT WOULD HAVE BEEN LIKE LIVING IN DIFFERENT MAYBE SIMPLER TIMES WHERE ALEX AND I MIGHT HAVE TAKEN DIFFERENT PATHS BUT THE OUTCOMES WOULDN'T HAVE BEEN SO DISPARATE YOU KNOW I ADMIRE HIM I LOVE HIM I WISH THERE WASN'T SO MUCH BAGGAGE IN RECENT WEEKS AS THEIR FATHER NEEDED AN OPERATION THE BROTHERS AND THEIR FAMILIES GATHERED TO BE WITH HIM AT PORTSMOUTH NAVAL MEDICAL CENTER IN VIRGINIA TO BREAK THE TENSION AS THE SURGERY STRETCHED ON ALEX LED THEM ALL TO A NEARBY RESTAURANT FOR DINNER GLENN PICKED UP THE CHECK AFTERWARD GLENN SAYS ALEX AND I WERE STANDING OUTSIDE IT WAS RAINING AFTER EVERYTHING ALL OF OUR BATTLES THERE WASN'T ANYTHING MORE TO SAY AND WE HUGGED EACH OTHER FOR A LONG TIME LATER I REALIZED THAT WAS THE FIRST TIME WE'VE EVER EMBRACED SEE RELATED LETTERS LETTERS TO THE EDITOR THE BROTHERS HUTCHINS WSJ SEPT 20 1993 9308180028 YY93 MM09 9309200099 930812 ON BOTH SIDES ACCOUNTANTS ASSAIL MALPRACTICE SUITS WHILE ASSISTING THEM THE BIG SIX FIRMS EVEN HELP CASES AGAINST EACH OTHER BY BACKING UP LAWYERS ONE INDUCEMENT HEFTY FEES BY MILO GEYELIN AND LEE BERTON STAFF REPORTERS OF THE WALL STREET JOURNAL THE BIG SIX ARE HAVING IT BOTH WAYS WHILE CLAMORING FOR RELIEF FROM MALPRACTICE LAWSUITS THE NATION'S LEADING ACCOUNTING FIRMS ARE PROFITING FROM THEM BY SELLING EXPENSIVE SERVICES THAT HELP LAWYERS WIN HIGHSTAKES DAMAGE CASES ACCOUNTING FIRMS SERVE LAW FIRMS IN EVERY ASPECT OF LITIGATION THEY INVESTIGATE CLAIMS TO ESTABLISH LIABILITY AND POTENTIAL DAMAGES HELP MANAGE AND ANALYZE DOCUMENTS PROVIDE EXPERTS WHO TESTIFY IN COURT AND ADMINISTER SETTLEMENT FUNDS AND DAMAGE AWARDS THIS SOCALLED LITIGATION SUPPORT IS THE FASTESTGROWING SPECIALTY SERVICE IN ACCOUNTING ACCORDING TO MAURY HELITZER WHO PLANS TO PUBLISH A NEWSLETTER FOR ACCOUNTANTS AND ATTORNEYS HE ESTIMATES INDUSTRYWIDE REVENUE AT 700 MILLION TO 1 BILLION A YEAR AND ONE OF THE FASTESTGROWING LITIGATIONSUPPORT NICHES NONE OTHER THAN LAWSUITS AGAINST FELLOW ACCOUNTANTS AS A PUBLICRELATIONS MATTER ACCOUNTANTS HAVE STRONGLY EMPHASIZED THE PERILS OF LITIGATION NOT THEIR GAINS FROM IT THE BIG SIX HAVE HIRED A POWERHOUSE CHICAGO LAW FIRM TO LOBBY FOR THEM IN WASHINGTON AND HAVE CONTRIBUTED 2 MILLION EACH TO FINANCE THE OVERALL EFFORT LITIGATION THEY WARNED THE SECURITIES AND EXCHANGE COMMISSION IN JUNE IS CUTTING THEIR CAPITAL BASE THREATENING THEIR INSURANCE EXPOSING PARTNERS' PERSONAL ASSETS TO SEIZURE AND ENDANGERING THE PROFESSION'S CONTINUED EXISTENCE THEY SEEK LIMITS ON DAMAGE AWARDS AMONG OTHER RELIEF BUT GETTING SCANT PUBLIC ATTENTION HAS BEEN THE ACCOUNTANTS' LITIGATIONSUPPORT WORK AT FEES RUNNING 275 TO 350 AN HOUR FOR BIG SIX PARTNERS MATCHING THOSE OF CORPORATE LAWYERS AND SOMETIMES EXCEEDING ACCOUNTANTS' AUDIT RATES BY 10 TO 15 THE INDUSTRY'S POSITION SAYS COLUMBIA LAW SCHOOL PROFESSOR JOHN COFFEE UNDERSCORES THE TENSION BETWEEN WANTING LITIGATION RELIEF AND PROFITING VERY HANDSOMELY FROM THE LITIGATION ENGINE WITHIN THE PROFESSION THAT TENSION IS CREATING RIFTS ESPECIALLY WHEN IT CAN BE SHOWN THAT FIRMS AREN'T ALWAYS PRACTICING WHAT THEIR EXPERT WITNESSES PREACH PRICE WATERHOUSE LONG KNOWN AS THE TIFFANY OF THE PROFESSION CLEARLY REFLECTS THAT TENSION IT IS THE ONLY ONE OF THE BIG SIX BEING RETAINED BY FEDERAL REGULATORS IN LAWSUITS AGAINST OTHER ACCOUNTING FIRMS CONNECTED TO THE SAVINGSANDLOAN COLLAPSE ITS EXPERTS HAVE CONSULTED AND TESTIFIED IN MORE THAN A DOZEN CASES FOR THE FEDERAL DEPOSIT INSURANCE CORP AND THE RESOLUTION TRUST CORP AND IN SCORES OF SUITS BY PRIVATE PLAINTIFFS THOUGH NOT REPRESENTING THE GOVERNMENT PRICE WATERHOUSE'S FIVE MAIN COMPETITORS ARTHUR ANDERSEN & CO DELOITTE & TOUCHE COOPERS & LYBRAND ERNST & YOUNG AND KPMG PEAT MARWICK HAVE ALL WORKED AS CONSULTANTS OR TESTIFIED AS EXPERTS IN SUITS AGAINST OTHER ACCOUNTING FIRMS MOSTLY SMALLER ONES OCCASIONALLY THOUGH BIG SIX FIRMS TESTIFY AGAINST EACH OTHER UNTIL FIVE YEARS AGO IT WAS MOSTLY VERBOTEN TO TESTIFY AGAINST OTHER ACCOUNTING FIRMS SAYS TERRY STOREVIK A LITIGATIONSUPPORT HEADHUNTER FOR ACCOUNTING FIRMS NOW IT'S OPEN WARFARE YET THE PRACTICE CARRIES HUGE RISKS IN MAY 1992 PRICE WATERHOUSE WAS HIT WITH A 338 MILLION DAMAGE AWARD THE BIGGEST EVER AGAINST AN ACCOUNTING FIRM THE JURY FOUND THAT PRICE WATERHOUSE HAD INADEQUATELY AUDITED UNITED BANK OF ARIZONA BEFORE IT WAS PURCHASED IN EARLY 1987 BY STANDARD CHARTERED PLC AS A RESULT THE JURY SAID PRICE WATERHOUSE HAD BEEN PARTLY AT FAULT FOR THE BRITISH BANK'S LOSSES AFTER SOME OF UNITED'S BIGGEST LOANS SOURED THE AWARD WAS OVERTURNED ON NARROW LEGAL GROUNDS LAST NOVEMBER BUT A MONTH LATER PRICE WATERHOUSE WAS BACK IN COURT OFFERING TESTIMONY ON BEHALF OF THE FDIC IN A MALPRACTICE SUIT IN WICHITA KAN AGAINST A CHICAGOBASED ACCOUNTING FIRM GRANT THORNTON ONE OF PRICE WATERHOUSE'S STAR EXPERT WITNESSES DANIEL DOOLEY DESCRIBED AN AUDITOR'S PROPER ROLE IN WAYS THAT APPEAR TO CONFLICT WITH HOW PRICE WATERHOUSE CONDUCTED ITS OWN DISPUTED AUDIT IN ARIZONA MR DOOLEY FOR INSTANCE TESTIFIED THAT AS AN AUDITOR HE PROPERLY HOLDS HIMSELF OUT AS AN EXPERT IN ANALYZING REALESTATE APPRAISALS ESPECIALLY IN THE AREA OF FINANCIAL INSTITUTIONS A PRICE WATERHOUSE LAWYER HAD CONTENDED IN THE PHOENIX CASE THAT AN OUTSIDE AUDITOR IS NOT AN APPRAISER OR EVALUATOR SIMILARLY MR DOOLEY IN TESTIMONY LIKENED AN AUDITOR'S FAVORABLE OPINION IN A COMPANY'S FINANCIAL STATEMENT TO A SEAL OF APPROVAL ENABLING STATEMENT USERS TO KNOW THEY'RE OK IN PHOENIX A PRICE WATERHOUSE PARTNER TESTIFIED JUST THE OPPOSITE THAT THE OPINION ISN'T INTENDED TO PROVIDE A BILL OF FINANCIAL HEALTH THERE WERE OTHER APPARENT CONTRADICTIONS AS WELL AND THEY MAY COME BACK TO HAUNT THE FIRM THE PHOENIX CASE AGAINST PRICE WATERHOUSE WILL BE RETRIED POSSIBLY AS EARLY AS THIS FALL IF THE PARTIES DON'T SETTLE FIRST AND A STANDARD CHARTERED LAWYER LEO BEUS SAYS HE PLANS TO BRING OUT WHAT HE SEES AS CONFLICTING TESTIMONY IT'S A VERY DANGEROUS BUSINESS TESTIFYING AGAINST ANOTHER FIRM BECAUSE WHAT YOU ACCUSE OTHERS OF DOING YOU MAY BE DOING SOMEWHERE ELSE SAYS MICHAEL J WAGNER A FORMER PRICE WATERHOUSE LITIGATION CONSULTANT NOW WORKING FOR PUTNAM HAYES & BARTLETT A CONSULTING BOUTIQUE IN PORTLAND ORE ANY CONFLICT BETWEEN PRICE WATERHOUSE'S OWN STANDARDS AND THOSE THAT ITS EXPERTS HAVE HELD UP AGAINST OTHERS HE SAYS COULD KILL PRICE IN RETRIAL A PRICE WATERHOUSE SPOKESWOMAN SAYS MR DOOLEY'S TESTIMONY DID NOT IN ANY WAY INVOLVE THE FACTS IN THE STANDARD CHARTERED CASE IT IS THEREFORE IRRELEVANT IN THAT LITIGATION IN WHICH PRICE ULTIMATELY EXPECTS TO PREVAIL PRICE DECLINES FURTHER COMMENT BECAUSE THE STANDARD CHARTERED CASE IS STILL IN LITIGATION MR DOOLEY DIDN'T RETURN CALLS SEEKING COMMENT MORE GENERALLY PRICE WATERHOUSE SAYS ALL THE BIG SIX FIRMS PROVIDE LITIGATION CONSULTING IN AUDITMALPRACTICE CASES AGAINST OTHER ACCOUNTING FIRMS AS LONG AS LITIGATION EXISTS THERE WILL BE A NEED FOR OUR SERVICES THE FIRM SAYS IN A WRITTEN RESPONSE TO QUESTIONS THAT IS NOT INCONSISTENT WITH OUR BELIEF THAT THERE IS TOO MUCH LITIGATION IN OUR COUNTRY PRICE WATERHOUSE CHAIRMAN SHAUN O'MALLEY ALSO NOTES WE DO MORE WORK ON BEHALF OF ACCOUNTING FIRMS IN MALPRACTICE CASES THAN AGAINST THEM LITIGATION SUPPORT QUIETLY TOOK OFF IN THE MID1980S AS A WAY FOR ACCOUNTING FIRMS TO COMPENSATE FOR SLOW GROWTH IN THEIR TRADITIONAL TAX ACCOUNTING AND AUDITING WORK A SIMULTANEOUS BOOM IN COMPLEX LAWSUITS CREATED A DEMAND FOR EXPERTS WHO COULD CRUNCH DAMAGEANDECONOMICLOSS CALCULATIONS IN A WIDE ARRAY OF CASES BANKRUPTCY DIVORCE CONTRACT DISPUTES PROFESSIONAL MALPRACTICE AND PERSONAL INJURY AS ACCOUNTANTS SERVED MORE FREQUENTLY AS EXPERTS THEY GENERATED MORE GROWTH IF ACCOUNTANTS WERE RENDERING OPINIONS ON ONE SIDE OF A CASE THE OTHER SIDE HAD TO HIRE EXPERTS OF ITS OWN MUCH OF THE REVENUE FROM LITIGATION SUPPORT GOES TO THE BIG SIX AT ARTHUR ANDERSEN ALONE IT TOPPED 100 MILLION THIS YEAR AND HAS BEEN GROWING 30 ANNUALLY FOR THE PAST FIVE YEARS SAYS GARY HOLDREN THE FIRM'S NATIONAL DIRECTOR FOR LITIGATION CONSULTING SERVICES THIS HAS BEEN A HIGH PRIORITY FOR US HE SAYS WE CAN MAKE A LOT MORE MONEY THAN IN OUR TRADITIONAL SERVICES USUALLY PEOPLE WHO NEED US ARE IN PAIN AND PEOPLE WHO ARE IN PAIN PAY MORE THAN THEY PAY FOR COMMODITY SERVICES THAT SOME OF THE PAIN AND PROFIT COMES IN SUITS AGAINST ACCOUNTANTS OVER ALLEGEDLY FAULTY AUDITS ISN'T SURPRISING GIVEN THE VOLUME AND THE SUBJECT MATTER LITIGATION SUPPORT IN SUCH SUITS INVOLVES METICULOUS RECONSTRUCTION OF YEARS OF AUDITS THROUGH WORK PAPERS AND FINANCIAL REPORTS AS WELL AS SCRUTINIZING A COMPANY'S INTERNAL CONTROLS TO SPOT FRAUD OR POOR BUSINESS PRACTICES AS MANY AS THREE PARTNERS SIX MANAGERS AND 20 AUDITORS CAN BE INVOLVED GENERATING FEES EXCEEDING 2 MILLION A YEAR ON A SINGLE CASE MR WAGNER SAYS HELPING LAWYERS IN MALPRACTICE SUITS AGAINST OTHER ACCOUNTANTS PROVIDES FOR 5 TO 15 OF LITIGATIONSUPPORT REVENUES SOME 35 MILLION TO 150 MILLION ANNUALLY ACCOUNTANTS ESTIMATE AT LEAST FOUR FORMER CHAIRMEN OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THE INDUSTRY'S NATIONAL LOBBYING AND RULEMAKING ORGANIZATION ARE NOW FULLTIME LITIGATION CONSULTANTS WITH BIG AUDITMALPRACTICE CASELOADS TWO TESTIFIED ON OPPOSING SIDES IN JUNE IN A SUIT BROUGHT BY A FAILED ELECTRONICS CHAIN IN COUNCIL BLUFFS NEB AGAINST COOPERS & LYBRAND THE PLAINTIFF WORLD RADIO LABORATORIES INC ACCUSED ITS FORMER AUDITORS OF FAILING TO IMPOSE PROPER INTERNAL CONTROLS WORLD RADIO WON A 17 MILLION JURY AWARD YET COOPERS TOO MAINTAINS AN AUDITMALPRACTICE CONSULTING OPERATION THAT PULLED IN ABOUT 16 MILLION IN REVENUE LAST YEAR SAYS J DUROSS O'BRYAN HEAD OF LITIGATION SUPPORT IN ITS SAN DIEGO OFFICE HE ADDS THAT 40 OF THE FIRM'S WORK IS FOR PLAINTIFFS IN PROMOTIONAL MATERIALS TO LAWYERS ARTHUR ANDERSEN DELOITTE & TOUCHE AND ERNST & YOUNG ALL EMPHASIZE THEIR AUDITMALPRACTICE EXPERIENCE DELOITTE CREDITS ONE OF ITS PARTNERS FOR A CLASSACTION SUIT AGAINST A NATIONAL ACCOUNTING FIRM DELOITTE DECLINES TO COMMENT AND LAST YEAR ERNST & YOUNG EXPERTS HELPED WIN AN 82 MILLION OUTOFCOURT SETTLEMENT IN AN ACCOUNTINGMALPRACTICE AND SECURITIESFRAUD CASE NAMING PEAT MARWICK AS A MAJOR DEFENDANT PEAT ACCEPTED LIABILITY FOR MORE THAN HALF THE SETTLEMENT ACCORDING TO LAWYERS CLOSE TO THE CASE THAT DIDN'T STOP PEAT FROM TEAMING UP WITH PRICE WATERHOUSE IN JUNE TO TESTIFY AGAINST A ROCHESTER NY ACCOUNTING FIRM ACCUSED BY A FORMER CLIENT OF MISPRICING 36 MILLION IN GOVERNMENT CONTRACTS A JURY AWARDED THE FORMER CLIENT 200000 PEAT MARWICK DECLINES TO COMMENT FORMER BIG SIX ACCOUNTANTS AND OTHER ACCOUNTANTS WHO TESTIFY IN ACCOUNTING MALPRACTICE CASES SAY THAT ALTHOUGH BIG SIX FIRMS READILY PROVIDE LITIGATION SUPPORT AGAINST SMALLER FIRMS THEY USUALLY AVOID GOING UP AGAINST EACH OTHER ONE REASON FIVE OF THEM ARE IN THE SAME LIABILITY INSURANCE POOL AND A HUGE DAMAGE AWARD AGAINST ONE COULD RAISE RATES AND REDUCE COVERAGE FOR ALL IT WOULD BE LIKE TAKING MONEY OUT OF OUR OWN POCKETS SAYS MR HOLDREN AT ARTHUR ANDERSEN MOREOVER THE SIMILARITIES AMONG THE TYPES OF ACCOUNTS THAT THE BIG SIX AUDIT REQUIRE THEM TO EMPLOY COMPARABLE PROCEDURES THUS OPENING THEM TO CHARGES OF INCONSISTENCY IF THEY CRITICIZE ANOTHER BIG SIX FIRM FOR PRACTICES THEY THEMSELVES MAY HAVE USED AGGRAVATING THE PROBLEM THE SUBJECTIVITY INVOLVED IN INTERPRETING AUDITING STANDARDS AND THE PRESSURES ON EXPERTS TO ADVOCATE THE POSITIONS THAT THEIR LAWYERS REPRESENT THERE'S A LOT OF BREADTH IN ACCOUNTING PRINCIPLE AND AUDITING PROCEDURES SAYS JOHN C BURTON A COLUMBIA UNIVERSITY ACCOUNTING PROFESSOR AND FORMER SEC CHIEF ACCOUNTANT THIS LEAVES A LOT OF ROOM FOR DISAGREEMENT NONETHELESS PRICE WATERHOUSE WAS SLATED THIS MONTH TO PROVIDE EXPERT TESTIMONY AGAINST ARTHUR ANDERSEN IN A MALPRACTICE SUIT BROUGHT BY A MUTUAL OF OMAHA AFFILIATE ALLEGING 225 MILLION IN LOSSES FROM FAULTY AUDITS OF SEVERAL REINSURANCE CONTRACTS THE CASE WAS SETTLED OUT OF COURT FOR AN UNDISCLOSED SUM MORE OFTEN THOUGH THE BIG SIX ARE SKIRTING THE CONFLICT PROBLEM BY WORKING FOR PLAINTIFFS ONLY AS BEHINDTHESCENES CONSULTANTS IN AUDITMALPRACTICE CASES AGAINST EACH OTHER BECAUSE THEY DON'T TESTIFY IN COURT CONSULTANTS DON'T HAVE TO BE DISCLOSED TO THE OPPOSING SIDE BUT THEY STILL EARN HUGE FEES PRICE WATERHOUSE FOR EXAMPLE EARNED MORE THAN 2 MILLION AS AN EXPERT CONSULTANT FOR BANKAMERICA IN A 1989 FEDERAL AUDITMALPRACTICE SUIT IN LOS ANGELES ACCUSING PEAT MARWICK OF FAILING TO DETECT THAT MORE THAN 600 MILLION IN STUDENT LOANS HADN'T BEEN PROPERLY SERVICED PEAT MARWICK SETTLED THE SUIT OUT OF COURT LAST YEAR FOR ABOUT 75 MILLION ACCORDING TO LAWYERS FAMILIAR WITH THE CASE WHILE PRICE WATERHOUSE HAS ABOUT 30 PARTNERS IN LITIGATION SUPPORT FOR THE FDIC IT ALSO MAINTAINS AN AGAINSTFDIC LITIGATION SUPPORT GROUP TO FEND OFF REGULATORS THE FIRM SAYS IT MAINTAINS A CHINESE WALL SEPARATING THE TWO GROUPS PRICE WATERHOUSE ALSO HAS SOMETIMES PROVIDED LITIGATION SUPPORT AGAINST BIG SIX FIRMS IN ONE PART OF THE COUNTRY WHILE DEFENDING THEM IN SIMILAR CASES ELSEWHERE WHILE PRICE WATERHOUSE IS BACKING UP THE FDIC IN AN AUDITMALPRACTICE CASE AGAINST PEAT MARWICK OVER THE COLLAPSE OF RAMONA SAVINGS & LOAN IN LOS ANGELES IT IS HELPING DEFEND PEAT IN AN RTC MALPRACTICE SUIT OVER AN S&L COLLAPSE IN RED HILL PA IF AN ACCOUNTING FIRM WISHES TO HIRE US PRICE WATERHOUSE SAYS IN A STATEMENT WE DO NOT BELIEVE THAT A PREVIOUSLY ACCEPTED ENGAGEMENT ON BEHALF OF PARTIES ADVERSE TO THE FIRM DISABLES US FROM ACCEPTING THE NEW ENGAGEMENT THIS APPROACH CAUSES SOME GRUMBLING PRICE WATERHOUSE TAKES THREE INTELLECTUALLY DISPARATE POSITIONS SAYS DAVID SMITH A LAWYER IN PHILADELPHIA REPRESENTING THE RTC IN THE RED HILL CASE THEY DEFEND THEMSELVES WHEN THEY ARE SUED ASSIST THE GOVERNMENT IN SUING OTHERS AND DEFEND AGAINST THE GOVERNMENT IN THE SAME SORT OF CASE AND PARTNERS AT GRANT THORNTON WHICH LAST APRIL SUCCESSFULLY DEFENDED ITSELF IN THE KANSAS SUIT IN WHICH MR DOOLEY TESTIFIED REMAIN STEAMED AN ACCOUNTANT HAS THE RESPONSIBILITY IN ANY ENGAGEMENT HE UNDERTAKES TO PERFORM THAT ENGAGEMENT OBJECTIVELY AND IN MY VIEW DAN DOOLEY DIDN'T DO THAT SAYS JW MIKE STARR NATIONAL DIRECTOR OF RISK MANAGEMENT AT THE NATION'S SEVENTHLARGEST ACCOUNTING FIRM HE TOOK THE POSITION THAT HE TOOK BECAUSE IT WAS SELFSERVING IT ADVANCED THE PLAINTIFF'S CASE MR DOOLEY DIDN'T RETURN PHONE CALLS PRICE WATERHOUSE AND THE OTHER BIG SIX SAY THEY SEE NOTHING INCONSISTENT IN PUSHING FOR PROTECTION FROM AUDITMALPRACTICE SUITS WHILE PROFITING FROM THE LITIGATION SUPPORT REQUIRED TO PURSUE SUCH ACTIONS NEITHER DOES THE INDUSTRY'S CHIEF WASHINGTON LOBBYIST MARK GITENSTEIN IT'S SIMILAR TO REPRESENTING BOTH PLAINTIFFS AND DEFENDANTS HE SAYS LAWYERS DO IT WHETHER ACCOUNTING FIRMS CAN CONTINUE THEIR TWOTRACK APPROACH MAY DEPEND PARTLY ON WHETHER STATE AND FEDERAL LAWMAKERS CONSIDERING LITIGATION REFORM OBJECT TO IT PRICE WATERHOUSE'S MR O'MALLEY SAYS HE WOULD GLADLY QUIT HELPING MALPRACTICE PLAINTIFFS IN RETURN FOR LEGISLATIVE RELIEF FROM LITIGATION EXCESSES MORE IMMEDIATELY THOUGH PRICE WATERHOUSE'S ATTITUDE TOWARD LITIGATION SUPPORT IS MORE LIKELY TO BE AFFECTED BY WHAT HAPPENS WHEN THE UNITED BANK OF ARIZONA CASE IS RETRIED AS THE BANK'S LAWYERS TRY TO EXPLOIT THE APPARENT INCONSISTENCIES IN THE FIRM'S POSITION SUGGESTS COLUMBIA'S PROF COFFEE THERE IS A RISK THAT IF YOU LIVE BY THE SWORD YOU DIE BY THE SWORD SEE RELATED LETTERS LETTERS TO THE EDITOR ACCOUNTING FIRMS RISK TARNISHING THEIR IMAGE WSJ SEPT 20 1993 9308120120 YY93 MM09 9309200031 930826 REVIEW & OUTLOOK EDITORIAL MEDICAL MIRACLES AMERICA HAS BEEN TRANSFIXED THIS SUMMER BY THE STORY OF ANGELA AND AMY LAKEBERG SIAMESE TWINS JOINED FROM CHEST TO ABDOMEN AND SHARING A LIVER AND A HEART IN A 5 1/2HOUR OPERATION FRIDAY AT PHILADELPHIA CHILDREN'S HOSPITAL DOCTORS SEPARATED THE TWINS SACRIFICING AMY SO THAT ANGELA MIGHT GRASP A SLIM PERHAPS 1 CHANCE OF SURVIVAL THEIRS IS A COMPELLING HUMAN DRAMA MADE ALL THE MORE SO BY THE PHOTOS OF THE SISTERS TWO PINK SWEETFACED GIRLS WITH DARK HAIR AND WIGGLY TOES WHO LOOK LIKE THEY ARE CLASPED IN AN EMBRACE NOT CONJOINED THEIR PARENTS REITHA AND KEN HAVE HAD MANY TOUGH CHOICES TO MAKE NOT LEAST THEIR DECISION NOT TO SEEK AN ABORTION WHEN THEY DISCOVERED LAST DECEMBER THAT MRS LAKEBERG WAS CARRYING SIAMESE TWINS IF LITTLE AMY AND ANGELA HAVE FOUND THEIR WAY INTO MANY HEARTS THEY'VE ALSO FOUND THEIR WAY TO THE CENTER OF A FIERY ETHICAL DEBATE ABOUT OUR HEALTH CARE SYSTEM AND WHAT MANY PERCEIVE AS ITS SKEWED VALUES THE QUESTION IS HOW FAR SHOULD MEDICINE GO AND AT WHAT COST TO PRESERVE LIFE SOME ARGUE THAT THE MONEY SPENT ON AMY AND ANGELA'S CARE ALREADY IN THE HUNDREDS OF THOUSANDS OF DOLLARS COULD BE BETTER SPENT ELSEWHERE SAY ON PRENATAL CARE OR INNERCITY IMMUNIZATIONS THE HOSPITAL WHERE AMY AND ANGELA WERE BORN ON JUNE 29 LOYOLA UNIVERSITY MEDICAL CENTER OUTSIDE CHICAGO REFUSED TO OPERATE BELIEVING THAT INTERVENTION WAS FUTILE THE NEONATOLOGIST WHO CARED FOR THE TWINS THERE HAS BEEN QUOTED AS SAYING LET'S FEED THEM AND KEEP THEM WARM LET'S PUT THEM IN GOD'S HANDS SO TO SPEAK THEN PHILADELPHIA CHILDREN'S HOSPITAL STEPPED FORWARD OFFERING TO OPERATE AND PICK UP THE COSTS NOT COVERED BY INDIANA'S MEDICAID PROGRAM AND DONATIONS THE LAKEBERGS HAVE NO PRIVATE MEDICAL INSURANCE IT'S HARD TO IMAGINE ANYONE CONDEMNING MR AND MRS LAKEBERG FOR SEEKING TO SAVE A DYING CHILD'S LIFE NO MATTER HOW STEEP THE ODDS OR HOW HIGH THE COST BUT IT'S ALSO UNLIKELY THAT THERE IS ANYTHING APPROACHING A GENERAL CONSENSUS THAT SUCH HEROIC EFFORTS SHOULD BE AUTOMATIC OR THAT SOCIETY OUGHT TO BE OBLIGATED TO PAY FOR THEM INDEED WE DOUBT THERE'S A SOCIAL CONSENSUS FOR MANY SOCALLED HEROIC MEDICAL EFFORTS OPENHEART SURGERY FOR 85YEAROLDS FOR INSTANCE OR LIVER TRANSPLANTS FOR ALCOHOLICS BUT THE HUMAN HEART BEING WHAT IT IS SOCIETY ON OCCASION WILL NO DOUBT MAKE COMMITMENTS BASED ON EMOTION RATHER THAN ON A CALCULATION OF THE ODDS FOR ALL OUR SOPHISTICATION TODAY WE STILL AREN'T VERY GOOD AT INCORPORATING RISKBENEFIT THINKING INTO PUBLIC POLICY AT LETTING THE MIND TEMPER COSTFREE EMOTION WE SHOULD BE THANKFUL FOR THIS INSTINCT THE ALTERNATIVE IS A SOCIETY WHOLLY WITHOUT COMPASSION BUT NO ONE SHOULD DOUBT THERE'S A DOWNSIDE FOR DECADES FOR INSTANCE WE'VE BANNED USEFUL CHEMICALS ON THE FLIMSIEST EVIDENCE OF CANCER SCARES DEPRIVING SOCIETY OF THE SUBSTANCES' ENORMOUS BENEFITS FRIGHT IS ALSO AN EMOTION AND IT DISTORTS MUCH PUBLIC ACTIVITY THE MEDIA WE SHOULD NOTE INDUCE HEALTHFUL COMPASSION FOR ABOUT THE SAME AUDIENCEGRABBING REASON THAT THEY GENERATE DESTRUCTIVE SCARES THAT SAID AMERICANS GRAPPLE ALL THE TIME WITH THE MIRACLES OF MODERN MEDICAL SCIENCE AND REACH SAGE DECISIONS MANY PEOPLE FACE CHOICES AS HARD AS REITHA AND KEN LAKEBERG'S EVERY HOUR OF EVERY DAY IN HOSPITAL WAITING ROOMS ACROSS THE COUNTRY PARENTS AND SPOUSES AND CHILDREN ARE CALLED UPON TO MAKE DIFFICULT DECISIONS ABOUT THE LIMITS OF MEDICINE ESPECIALLY REGARDING THE ELDERLY FOR THEIR PART HOSPITALS AND MEDICAL WORKERS ARE INCREASINGLY IF IMPERFECTLY AWARE OF THEIR RESPONSIBILITY TO HELP PATIENTS AND RELATIVES REACH INFORMED DECISIONS ON BALANCE WE'D SAY THAT A SYSTEM LIKE OURS THAT GENERALLY LETS THE PRINCIPALS ARRIVE AT DECISIONS PRIVATELY DOES A PRETTY GOOD JOB OF DEALING WITH EXTRAORDINARY CASES LIKE AMY'S AND ANGELA'S THE ALTERNATIVE IS THE SORT OF HARDLINE FIXED PRINCIPLES THAT MEDICAL ETHICISTS ENDLESSLY PURSUE TOWARD THE HORIZON OR WORSE THE BATTLEFIELDS OF AMERICA'S COURTROOMS WE WISH ANGELA AND HER PARENTS THE BEST NOW WITH THE CASE OF THE CONJOINED TWINS BEHIND US THERE REMAINS A MULTITUDE OF MORE PRESSING CONCERNS ABOUT THE COSTS BENEFITS AND POTENTIALLY MIRACULOUS BENEFITS OF MODERN AMERICAN MEDICINE SEE RELATED LETTER LETTERS TO THE EDITOR SEPARATION OF TWINS ELICITS MANY QUESTIONS WSJ SEPT 20 1993 9308260138 YY93 MM09 9309170160 930917 THURSDAY'S MARKETS BONDS DECLINE STOCKS DOLLAR FINISH MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES FELL PUSHING LONGTERM INTEREST RATES BACK ABOVE 6 STOCK PRICES AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE EDGED DOWN 280 POINTS TO 363085 AND STANDARD & POOR'S 500STOCK INDEX LOST 217 TO 45943 BUT THE NASDAQ COMPOSITE INDEX INCHED UP 025 TO 73980 ANALYSTS SAID ECONOMIC NEWS RELEASED YESTERDAY HAD LITTLE IMPACT ON THE FINANCIAL MARKETS WHERE TRADING WAS LACKLUSTER BECAUSE OF THE ROSH HASHANA HOLIDAY THE COMMERCE DEPARTMENT SAID THE TRADE DEFICIT NARROWED TO 1034 BILLION IN JULY FROM 1206 BILLION IN JUNE ALSO THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE BENEFITS ROSE 2000 FOR THE WEEK ENDED SATURDAY THE FEDERAL RESERVE BOARD SAID INDUSTRIAL PRODUCTION IN AUGUST ROSE 02 LARGELY BECAUSE OF A SURGE IN PRODUCTION OF BUSINESS EQUIPMENT AND DURABLEGOODS MATERIALS SENTIMENT IN THE BOND MARKET HAS SHIFTED TO THE BELIEF THAT INTEREST RATES HAVE BOTTOMED AND WILL BE RISING IN THE FUTURE SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS I THINK THAT'S WRONG BUT THAT'S THE SENTIMENT MR SOHN BELIEVES RATES WILL FALL FURTHER BECAUSE OF THE WEAK ECONOMY GLOBAL DISINFLATION AND AN UNWILLINGNESS BY THE FED TO RAISE INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 030 TO 11232 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2246 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 990 ISSUES FELL AND 934 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 3/4 POINT OR MORE THAN 750 FOR EACH 1000 FACE AMOUNT TO YIELD 603 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16025 MARKS AND 10415 YEN COMPARED WITH 15955 MARKS AND 10590 YEN WEDNESDAY 9309170159 930917 ITALMOBILIARE BOARD APPROVES INCREASE IN CAPITAL BY A TOTAL OF 1687 MILLION SPECIAL TO THE WALL STREET JOURNAL MILAN ITALIAN CONSTRUCTION COMPANY ITALMOBILIARE SPA SAID ITS BOARD APPROVED A COMPLEX CAPITAL INCREASE THAT TOTALS 260 BILLION LIRE 1687 MILLION THE ANNOUNCEMENT CAUGHT THE MILAN STOCK MARKET BY SURPRISE THE FIRST PART OF THE MOVE IS A 3FOR10 RIGHTS ISSUE FOR 47 MILLION ORDINARY SHARES AND 2196 MILLION SAVINGS SHARES AT A PRICE OF 18000 LIRE FOR EACH NEW SHARE EACH SHARE WILL HAVE A NOMINAL VALUE OF 5000 LIRE THIS PART OF THE ISSUE RESULTS IN AN INCREASE IN CAPITAL OF 124 BILLION LIRE FOR ITALMOBILIARE A SPOKESMAN SAID A SECOND STEP PROVIDES FOR AN INCREASE IN CAPITAL OF A FURTHER 124 BILLION LIRE TIED TO A BOND ISSUE FROM MEDIOBANCA A MILAN MERCHANT BANK ITALMOBILIARE WILL ISSUE 69 BILLION SAVINGS SHARES WITH A NOMINAL VALUE OF 5000 LIRE EACH THE BONDS WITH A PRICE OF 18000 LIRE EACH WILL BE EXCHANGEABLE IN THE RATIO OF THREE BONDS FOR EVERY 10 ITALMOBILIARE SHARES HELD EITHER SAVINGS OR ORDINARY THE COMPANY SAID THE THIRD STEP ENTAILS A WARRANT ISSUE WHICH SHOULD BRING IN 13 BILLION LIRE FOR ITALMOBILIARE A SPOKESMAN SAID ITALMOBILIARE WILL ISSUE 69 MILLION WARRANTS WITH EACH NEW SAVINGS AND ORDINARY SHARE ISSUED IN THE FIRST STEP OF THE CAPITAL INCREASE THE WARRANTS CAN BE EXCHANGED FOR ORDINARY SHARES WITH A NOMINAL VALUE OF 5000 LIRE IN THE RATIO OF 10 WARRANTS FOR ONE ORDINARY SHARE AT A PRICE OF 20000 LIRE DEADLINE FOR CONVERSION OF THE WARRANTS WILL BE DEC 31 1996 ITALMOBILIARE SHARES WERE DELAYED FROM OPENING ON THE MILAN BOURSE YESTERDAY PENDING THE ANNOUNCEMENT OF THE CAPITAL INCREASE WHEN THE SHARES OPENED THEY REACTED NEGATIVELY TO THE NEWS AND CLOSED AT 41300 LIRE DOWN 1700 LIRE ANALYSTS SAID THE REACTION WAS PROBABLY DUE TO THE FACT THAT THE ANNOUNCEMENT WAS UNEXPECTED IN ADDITION ANALYSTS POINTED TO THE PUBLIC'S NEGATIVE PERCEPTION OF A CAPITAL INCREASE MADE BY ITALMOBILIARE'S CEMENT COMPANY ITALCEMENTI ABOUT 1 1/2 YEARS AGO AS ANOTHER POSSIBLE FACTOR IN THE SHARE'S DECLINE ANALYSTS SAID THE REASONS FOR ITALMOBILIARE'S CAPITAL INCREASE MIGHT BE CONNECTED TO THE RECENT ACQUISITION OF DEBT RELATED TO THE PUBLISHING ARM OF THE COMPANY OR INVESTMENT IN FRENCH CEMENT COMPANY CIMENTS FRANCAIS ITALCEMENTI BOUGHT A CONTROLLING STAKE IN CIMENTS FRANCAIS IN 1992 IN A COMPLICATED DEAL WITH MEDIOBANCA ITALMOBILIARE IS THE FINANCIAL HOLDING COMPANY OF THE PESENTI GROUP WHICH HAS INTERESTS IN THE BUILDING AND CONSTRUCTION INDUSTRY 9309170158 930917 TECHNOLOGY AT&T APOLOGIZES FOR RACIST DRAWING IN WORKER MAGAZINE NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO APOLOGIZED TO A CIVIL RIGHTS GROUP AND ITS OWN WORKERS OVER A DRAWING OF A MONKEY TO DEPICT AFRICANS THAT APPEARED IN THE AT&T EMPLOYEE MAGAZINE THE DRAWING SUBMITTED TO AT&T BY AN OUTSIDE DESIGN FIRM IN NEW YORK CITY SHOWS HUMAN CHARACTERS ON SEVERAL CONTINENTS CONVERSING BY TELEPHONE ON THE AFRICAN CONTINENT A MONKEY IS SHOWN USING A PHONE THE PICTURE WAS TRULY OFFENSIVE SAID MARY L PEELER EXECUTIVE DIRECTOR OF THE NORTH CAROLINA CHAPTER OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE WHO ON WEDNESDAY SENT A LETTER OF COMPLAINT TO AT&T CHAIRMAN ROBERT E ALLEN AT&T SAID MR ALLEN'S WRITTEN APOLOGY WOULD BE SENT TODAY SOME AT&T WORKERS ALSO FOUND THE DRAWING OFFENSIVE A SPOKESMAN SAID WE'VE RECEIVED AT LEAST 100 CALLS FROM IRATE EMPLOYEES THE PICTURE WAS DRAWN BY MICHAEL MORAN AN ILLUSTRATOR BASED IN NEW YORK CITY IT WAS SUBMITTED TO AT&T BY AN OUTSIDE DESIGN FIRM STEVE PHILLIPS DESIGN ALSO OF NEW YORK WHICH HAS BEEN UNDER CONTRACT TO AT&T FOR MORE THAN 10 YEARS AT&T USED THE DRAWING ON A FUN N GAMES PAGE IN THE AT&T FOCUS MAGAZINE AND WAS PART OF A QUIZ ON AT&T'S MOVES INTO THE INTERNATIONAL MARKET PHILLIPS IS STILL UNDER CONTRACT BUT THEY HAVE BEEN TOLD THAT WE ARE NOT PLEASED THE AT&T SPOKESMAN SAID HE SAID PHILLIPS INFORMED AT&T THAT IT HAD FIRED THE ART DIRECTOR WHO PLACED THE PICTURE A PERSON WHO ANSWERED THE TELEPHONE AT PHILLIPS DECLINED TO COMMENT MR MORAN THE ILLUSTRATOR COULDN'T BE LOCATED AT&T'S SPOKESMAN SAID HE DIDN'T KNOW WHY THE MAGAZINE'S EDITORS HADN'T NOTICED THE DRAWING DURING THE USUAL PROOFING AND GALLEY PROCESS BEFORE PUBLICATION THE ERROR HE SAID WASN'T DISCOVERED BY MAGAZINE STAFFERS UNTIL AFTER THE PRINTER HAD ALREADY BEGUN MAILING THE ISSUE TO EMPLOYEES LAST WEEK YESTERDAY THE MAGAZINE EDITORS SENT OUT A MESSAGE ON AT&T'S ELECTRONIC MAIL SYSTEM WHICH IS USED BY TENS OF THOUSANDS OF AT&T EMPLOYEES SENIOR VICE PRESIDENT MARILYN LAURIE WHO HEADS PUBLIC RELATIONS TOLD EMPLOYEES THAT SHE WAS APPALLED AND PERSONALLY DEEPLY SORRY ABOUT THE RACIST ILLUSTRATION 9309170157 930917 WHO'S NEWS MELLON BANK CORP MELLON BANK CORP PITTSBURGH JOAB L THOMAS 60 YEARS OLD PRESIDENT OF PENNSYLVANIA STATE UNIVERSITY UNIVERSITY PARK PA WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY AND OF ITS MELLON BANK NA UNIT THE ACTION INCREASES THE COMPANY'S BOARD TO 18 MEMBERS 9309170156 930917 COMPUTERS OZZIE THE WIZARD BEHIND NOTES SOFTWARE USES ALLIANCE WITH LOTUS TO DO HIS THING BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL WESTFORD MASS WILLIAM H GATES THE CHAIRMAN OF MICROSOFT CORP ONCE CALLED RAY OZZIE ONE OF THE TOP FIVE PROGRAMMERS IN THE UNIVERSE NO DOUBT MR GATES FIGURES THE OTHER FOUR WORK FOR HIM BUT MR OZZIE IS A COMPETITOR HE DESIGNED LOTUS NOTES SOFTWARE FOR NETWORKING THAT'S SPREADING LIKE KUDZU ACROSS CORPORATE AMERICA FAST BECOMING LOTUS DEVELOPMENT CORP'S FLAGSHIP PRODUCT IT'S THE CENTERPIECE OF EVERYTHING WE'RE DOING SAYS LOTUS'S CHAIRMAN JIM P MANZI MR OZZIE DOESN'T WORK FOR LOTUS EITHER HE RUNS IRIS ASSOCIATES A PINTSIZED SOFTWARE BOUTIQUE THAT WROTE NOTES AND STYLES ITSELF AS A PROGRAMMERS' UTOPIA JUST AS NOTES IS A NEW TYPE OF SOFTWARE THAT DOESN'T EASILY FIT INTO EXISTING CATEGORIES MR OZZIE IS TRYING TO BREAK NEW GROUND WITH IRIS AND ITS UNLIKELY ALLIANCE WITH LOTUS IRIS WILL NEVER BE ANOTHER MICROSOFT OR LOTUS EXPLAINS MR OZZIE A LEAN 37YEAROLD WITH A FULL HEAD OF PREMATURELY SILVER HAIR WE CAN'T BE A BIG COMPANY AND DO WHAT WE DO STARTED WITH SEED MONEY FROM LOTUS A DECADE AGO AND OWNED BY ITS EMPLOYEES IRIS PRIZES ENGINEERING ABOVE ALL ELSE PROGRAMMERS ARE PAMPERED AND SHIELDED FROM NETTLESOME MANAGEMENT THE COMPANY'S VALUES REFLECT THOSE OF ITS FOUNDERS FOUR REBEL PROGRAMMERS FROM DIGITAL EQUIPMENT CORP AND DATA GENERAL CORP WHO REJECTED THE STRICTURES OF WORKING AT BIG COMPANIES AND WANTED TO START AFRESH PERHAPS MOST IMPORTANT THEY WERE CONVINCED YEARS BEFORE OTHERS IN THE INDUSTRY THAT MAINFRAMES AND MINICOMPUTERS WOULD BE SUPPLANTED BY INEXPENSIVE NETWORKS OF PERSONAL COMPUTERS INDEED THEY WERE ALMOST TOO EARLY WHEN LOTUS PUT NOTES ON THE MARKET IN 1989 DEMAND FOR NETWORKAPPLICATIONS SOFTWARE OFTEN CALLED GROUPWARE WAS MODEST EVEN NOW ONLY ABOUT A THIRD OF PCS IN OFFICES ARE WIRED IN A WAY THAT MAKES NETWORKING POSSIBLE BUT THE TREND IS ACCELERATING AND AS MORE PEOPLE GET WIRED THEY ARE DISCOVERING THAT THEIR PCS CAN BECOME FAR MORE THAN STANDALONE SPREADSHEET CRUNCHERS TIED INTO OFFICE NETWORKS THEY CAN BE TRANSFORMED INTO POWERFUL TOOLS FOR COMMUNICATING AND BRINGING TEAMS OF WORKERS MORE CLOSELY TOGETHER NOTES IS GROWING FAST WITH 500000 USERS AT 2000 COMPANIES AS OF JUNE 30 UP FROM 350000 USERS AT 1400 COMPANIES JUST SIX MONTHS EARLIER CHASE MANHATTAN CORP METROPOLITAN LIFE INSURANCE CO PRICE WATERHOUSE AND HUNDREDS OF OTHER MAJOR COMPANIES ARE BUILDING NETWORKS AROUND NOTES GENERAL MOTORS CORP HAS MORE THAN 15000 COPIES ARTHUR ANDERSEN BOUGHT 20000 IN APRIL THE LARGEST PURCHASE OF NOTES YET FOR NOW NOTES FACES LITTLE COMPETITION BUT ORACLE CORP HAS SAID IT WILL HAVE GROUPWARE NEXT YEAR WHILE MICROSOFT BORLAND INTERNATIONAL INC AND WORDPERFECT CORP ARE ADDING WORKGROUP FEATURES TO THEIR PRODUCTS MICROSOFT ALSO HAS SAID IT WILL ADD NOTESLIKE FEATURES TO A NEW VERSION OF ITS PC OPERATING SYSTEM SCHEDULED TO COME OUT NEXT YEAR WHICH COULD PUT ADDED PRESSURE ON LOTUS NOTES CAN FUNDAMENTALLY CHANGE THE WAY PEOPLE WORK SAYS MR OZZIE HAPPY TO SEE HIS VISION FINALLY TAKE FLIGHT MR OZZIE HAS BEEN PUSHING GROUPWARE SINCE 1981 WHEN HE APPROACHED A DOZEN VENTURECAPITAL FIRMS TO FUND HIM IN A NEW COMPANY ALL TURNED HIM DOWN I WAS A PROGRAMMER THREE YEARS OUT OF COLLEGE AND I WANTED MY OWN STARTUP HE SAYS TOTALLY NAIVE SO HE JOINED LOTUS TO WRITE A PROGRAM CALLED SYMPHONY WITH A PROMISE FROM LOTUS'S FOUNDER AND FORMER CHIEF EXECUTIVE OFFICER MITCHELL KAPOR TO HELP HIM FIND BACKING WHEN HE WAS DONE INSTEAD IN 1984 LOTUS ITSELF CHOSE TO BACK MR OZZIE'S WORK AND HE FORMED IRIS WITH AN ADVANCE OF 1 MILLION FOR WHAT WAS TO BE 18 MONTHS' WORK IT TOOK A LITTLE LONGER MR OZZIE CONCEDES INDEED IT ALMOST DIDN'T HAPPEN IN 1988 HAVING DEVELOPED THE FIRST VERSION OF NOTES MR OZZIE WAS FRUSTRATED WITH LOTUS'S SLOW PACE IN GETTING IT TO MARKET HE DREW MICROSOFT INTO TALKS WITH LOTUS ABOUT LICENSING NOTES AND THE TWO ARCHRIVALS HELD SECRET TALKS MICROSOFT'S LAST OFFER WAS 4 MILLION WHILE LOTUS WANTED NO LESS THAN 12 MILLION ACCORDING TO INSIDERS FORTUNATELY FOR LOTUS THE DEAL FELL THROUGH NOTES SALES COULD REACH 100 MILLION THIS YEAR OR 10 OF LOTUS'S EXPECTED 1993 SALES OF NEARLY 1 BILLION AND IT IS HELPING DEFINE A WHOLE NEW MARKET I SPONSORED A LOT OF PROJECTS IN THOSE DAYS AND NOTES TURNED OUT TO BE THE ONE PROFOUND WINNER MR KAPOR SAYS OF COURSE IT HAD A LONG GESTATION PERIOD NO ONE REALIZED IT WOULD TAKE SO LONG FOR THE INFRASTRUCTURE NETWORKS AND COMPUTING POWER TO CATCH UP NOTES ALSO HAD TO OVERCOME MISSTEPS BY LOTUS WHICH HAD ALWAYS SOLD SOFTWARE BY RETAIL AND WASN'T QUITE SURE WHAT TO DO WITH NOTES WHICH IS FAR MORE COMPLEX THAN LOTUS'S SPREADSHEET PRODUCTS LOTUS MANAGEMENT TURMOIL DIDN'T HELP EITHER WE WENT THROUGH EIGHT VICE PRESIDENTS MR OZZIE SAYS COUNTING THEM ON HIS FINGERS LOTUS ALSO DIDN'T MAKE NOTES EASY TO BUY ORIGINALLY PRICING IT AT 62500 FOR A MINIMUM OF 200 COPIES AND SELLING IT TO BIG COMPANIES THROUGH LOTUS'S OWN SALES FORCE TODAY IT'S STARTING TO BE SOLD RETAIL IN SIXPACKS BUT STILL FOR AROUND 300 A COPY MR OZZIE AND COLLABORATORS TIMOTHY HALVORSON AND LEONARD KAWELL ADAPTED KEY CONCEPTS FOR NOTES FROM THEIR DAYS AT THE UNIVERSITY OF ILLINOIS IN THE MID1970S NOODLING AROUND AT NIGHT AND ON WEEKENDS STUDENTS THERE CREATED A SIMPLE ELECTRONIC BULLETIN BOARD STORING COMMENTS IN THE COMPUTER TO PRODUCE A RUNNING DIALOGUE LATER THE FEATURE WAS TACKED ONTO AN ACADEMIC PROGRAM PLATO WHICH RAN ON A MAINFRAME AND MADE IT POSSIBLE TO COORDINATE GROUP PROJECTS AFTER IRIS WAS FUNDED MR OZZIE PERSUADED HIS TWO COLLEGE FRIENDS TO JOIN HIM THEY ADDED STEVEN BECKHARDT WHO HAD WRITTEN VAX NOTES AN EARLY EXAMPLE OF GROUPWARE FOR DIGITAL EQUIPMENT BUT VAX NOTES COULD ONLY BE USED ON DIGITAL MINICOMPUTERS IRIS TODAY IS A LONG WAY FROM ITS SHOESTRING BEGINNING IN A VICTORIAN HOUSE IN LITTLETON MASS LOCATED IN AN EXECUTIVE PARK NORTH OF BOSTON ITS EMPLOYEES CREATE CODE IN A WARREN OF COMFORTABLE OFFICES ARRAYED AROUND A PLUSH ROOM WITH COUCHES AND A BUST OF ELVIS PRESLEY THE ROOM IS DUBBED THE CRASH PAD AFTER THE LIVING ROOM IN IRIS'S FIRST HOME WHERE PEOPLE WENT NOT TO SLEEP BUT TO WAIT OUT FREQUENT COMPUTERNETWORK CRASHES THAT HALTED WORK AROUND THIS HUB THE SOFT CLICKING OF KEYBOARDS DRIFTS FROM DARKENED ROOMS WHERE INTENSE YOUNG SOFTWARE ENGINEERS ARE LOST IN THEIR WORK CASES OF CANDY BARS AND COLA FILL A SMALL KITCHEN MR MANZI SEES THE LOTUSIRIS ALLIANCE AS SOMETHING LIKE THE STUDIO SYSTEM IN HOLLYWOOD IN THE 30S AND 40S WHEN THE KEY TALENT WORKED IN THEIR OWN LITTLE STUDIOS IN ORBIT AROUND A PARENT WHICH HANDLED DISTRIBUTION AND PROMOTION HE SAYS HE WOULD CONSIDER THAT KIND OF RELATIONSHIP AGAIN WITH OTHER DEVELOPERS WITH IRIS WE'VE HAD OUR UPS AND DOWNS ALONG THE WAY BUT THE RELATIONSHIP WORKS ULTIMATELY HE CONTINUES WE CONTROL THE PRODUCT BUT RAY IS THE GODFATHER AND THE SOURCE OF INSPIRATION OF THE WHOLE THING NEITHER MR OZZIE NOR MR MANZI WOULD SAY WHAT IRIS IS PAID BUT A LOTUS INSIDER SAYS IRIS AND MR OZZIE ARE GUARANTEED A LUCRATIVE SLICE OF GROSS SALES RIGHT OFF THE TOP WHETHER WE MAKE A PROFIT OR NOT ANALYSTS EXPECT NOTES TO SHOW ITS FIRST PROFIT THIS YEAR NEWFOUND WEALTH HASN'T CHANGED THE INTENSITY WITH WHICH MR OZZIE TACKLES HIS WORK COLLEAGUES SAY EXCEPT THAT HE NOW TAKES MOST WEEKENDS OFF BUT HE ADMITS THAT IT HAS ALLOWED HIM TO INDULGE MY ONE LITTLE VICE IT'S A FONDNESS FOR 12METER FORMULA RACING BOATS WHERE I CAN CLEAR MY MIND AND ENGAGE ALL MY SENSES FIGHTING THE OCEAN AT 80 MILES AN HOUR HE SAYS THAT'S WHERE I DO MY BEST THINKING 9309170155 930917 AUSTRIA'S OMV TO RESTRUCTURE REFOCUS ON OIL COMPANY TO CUT OUTPUT OF CHEMICAL DIVISION ELIMINATE 1100 JOBS BY ALEX KETO SPECIAL TO THE WALL STREET JOURNAL VIENNA FACED WITH MOUNTING LOSSES OMV AG AUSTRIA'S LARGEST OIL AND PETROCHEMICALS COMPANY SAID IT WILL EMBARK ON A DRASTIC RESTRUCTURING DRIVE ULTIMATELY AIMED AT STRENGTHENING ITS OIL OPERATIONS WHILE REDUCING ITS DEPENDENCE ON THE CHEMICAL BUSINESS THE SHIFT WON'T COME CHEAP AND OMV WILL LIKELY POST COMBINED LOSSES FROM ITS BUSINESS OPERATIONS AND THE RESTRUCTURING COSTS OF UP TO 47 BILLION SCHILLINGS 4189 MILLION SAID WOLFGANG RUTTENSTORFER OMV'S CHIEF FINANCIAL OFFICER IN AN INTERVIEW FURTHERMORE INVESTORS MAY HAVE TO WAIT UNTIL 1995 BEFORE OMV AGAIN SHOWS HEALTHY PROFITS OUR OBJECTIVE IS TO GET BACK TO THE BLACK NUMBERS IN 1994 AND THAT IS ALL MR RUTTENSTORFER SAID IT WOULD BE OVERLY AMBITIOUS TO FORECAST EARNINGS OR SALES IN THIS DIFFICULT SITUATION ALTHOUGH THE RESTRUCTURING DRIVE AND THE SUBSEQUENT LOSSES MAY DELAY EFFORTS BY OMV TO SELL 20 OF ITS SHARES TO A LONGTERM INVESTOR MR RUTTENSTORFER SAID THE COMPANY HAD LITTLE CHOICE BUT TO GO FORWARD THE PLANS FOR THE SALE AREN'T ON HOLD HE SAID THE INVESTORS WANTED TO HAVE THESE PROBLEMS SOLVED BEFORE THEY WOULD INVEST ANYWAY I THINK IT MAY SLOW DOWN THE PROCESS BUT IT WON'T HALT THE PROCESS IN APRIL OMV ANNOUNCED THAT IT WOULD APPROACH A MAJOR OILPRODUCING COUNTRY SUCH AS SAUDI ARABIA OR AN INTEGRATED WESTERN OIL COMPANY TO MAKE A LONGTERM INVESTMENT MR RUTTENSTORFER SAID HE COULD PROVIDE NO DETAILS OTHER THAN TO SAY TALKS WITH INVESTORS ARE CONTINUING ALTHOUGH OMV WILL BE REEXAMINING ALL OF ITS OPERATIONS THE MAIN BLOW FROM THE RESTRUCTURING EFFORT WILL FALL SQUARELY ON OMV'S CHEMICAL DIVISION THE FINANCE CHIEF SAID WITHIN THE CHEMICAL DIVISION OMV PLANS BOTH TO CUT OUTPUT AND TO RESTRUCTURE OPERATIONS MR RUTTENSTORFER SAID THE MAIN PROBLEM AREA IN THE CHEMICAL DIVISION IS THE FERTILIZER OPERATIONS WHICH HAVE COME UNDER SEVERE PRESSURE FROM LESSEXPENSIVE IMPORTS FROM EASTERN EUROPE WHILE AT THE SAME TIME DEMAND FOR FERTILIZERS HAS DECLINED IN BOTH WESTERN AND EASTERN EUROPE AS LAND HAS BEEN REMOVED FROM AGRICULTURAL USE FERTILIZERS HAVE STRUCTURAL PROBLEMS AND THEY WON'T IMPROVE WITH AN UPTURN IN THE ECONOMY SAID MR RUTTENSTORFER AS A RESULT OMV WILL SHUT DOWN CAPACITY AND REDUCE OUTPUT FROM CURRENT LEVELS OF BETWEEN ONE MILLION AND 11 MILLION TONS A YEAR TO BETWEEN 600000 AND 700000 TONS ALTHOUGH OMV HAS NO CURRENT PLANS TO SELL ITS FERTILIZER OPERATIONS THE COMPANY DOESN'T RULE IT OUT WE WILL CONSOLIDATE IT AND RESTRUCTURE IT AND WAIT A BIT FOR AN ECONOMIC UPTURN SAY IN 1995 SO WE MIGHT GET A BETTER PRICE IF WE DID SELL MR RUTTENSTORFER SAID OMV WILL ALSO SPIN OFF ITS FINECHEMICAL UNIT WHICH PRODUCES FOR THE PHARMACEUTICAL INDUSTRY AND SEEK TO SELL A 49 STAKE IN THE NEWLY FORMED COMPANY THE OBJECTIVE IS CERTAINLY TO BECOME MORE AND MORE OF AN OIL COMPANY MR RUTTENSTORFER SAID CHEMICALS ACCOUNT FOR ABOUT 20 OF OUR TURNOVER AND THAT IS QUITE HIGH OTHERS IN THE INDUSTRY HAVE ONLY 10 OF THEIR TURNOVER IN CHEMICALS ALL TOLD OMV'S RESTRUCTURING EFFORTS WHICH INCLUDE WRITEOFFS WILL COST THE COMPANY 37 BILLION SCHILLINGS FROM ITS ORDINARY BUSINESS ACTIVITIES OMV EXPECTS TO LOSE AN ADDITIONAL ONE BILLION SCHILLINGS FOR THE FIRST HALF OF 1993 THE COMPANY'S LOSSES WERE 552 MILLION SCHILLINGS 492 MILLION THE MOVES WILL ALSO TRIM OMV'S STAFF BY ABOUT 1100 FROM CURRENT LEVELS OF ABOUT 12100 ANALYSTS SHIED AWAY FROM GIVING THE PLANS THEIR SEAL OF APPROVAL AND OMV'S SHARE PRICE FELL TO 736 SCHILLINGS 6560 FROM 755 SCHILLINGS IN TRADING ON THE VIENNA STOCK EXCHANGE I AM VERY CAUTIOUS ABOUT THIS PLAN SAID GISELA LETTMAYER AN ANALYST WITH CREDITANSTALTBANKVEREIN IN VIENNA IT IS ONLY A VERY FIRST STEP AND THEY STILL HAVE TO DEAL WITH THE UNIONS WHICH ARE STRONGLY AGAINST JOB REDUCTIONS AND WAGE REDUCTIONS SHE NOTED THAT OMV'S FORECASTS FOR BREAKING EVEN IN 1994 DEPEND ON BRENT OIL PRICES RISING TO ABOUT 18 A BARREL LAST WEEK BRENT HIT ITS LOWEST LEVEL SINCE 1990 AT 1530 A BARREL I DON'T BELIEVE THEY WILL BREAK EVEN IN 1994 SHE CONCLUDED 9309170154 930917 SCHULLER INTERNATIONAL OWENSCORNING TO SWAP PART OF ROOFING LINES DENVER SCHULLER INTERNATIONAL INC A UNIT OF MANVILLE CORP AND OWENSCORNING FIBERGLAS CORP TOLEDO OHIO SAID THEY SIGNED A LETTER OF INTENT TO SIMULTANEOUSLY SELL EACH OTHER PART OF THEIR ROOFING BUSINESSES THE TRANSACTION WILL GIVE SCHULLER THE COMMERCIAL AND INDUSTRIAL ROOFING BUSINESS OF OWENSCORNING AND OWENSCORNING WILL PICK UP THE RESIDENTIAL ROOFING BUSINESS OF SCHULLER EACH OF THE TRADED BUSINESSES HAS ANNUAL SALES OF ABOUT 85 MILLION VERY LITTLE IF ANY CASH WILL CHANGE HANDS IN THE DEAL THE COMPANIES SAID AND THAT WOULD COME ONLY AS A MEANS TO ACCOUNT FOR INVENTORY DIFFERENCES SCHULLER WILL RECEIVE A MANUFACTURING PLANT IN OKLAHOMA CITY AND OTHER PRODUCTION EQUIPMENT AND WILL HAVE EXCLUSIVE RIGHTS TO MARKET SOME OWENSCORNING PRODUCTS OWENSCORNING WILL PICK UP SCHULLER'S SAVANNAH GA MANUFACTURING PLANT AND EQUIPMENT AT A PLANT IN WAUKEGAN ILL THE SWAP PLAYS TO THE TWO COMPANIES' STRENGTHS SAID SCHULLER PRESIDENT RICHARD KASHNOW SCHULLER HAS A STRONG POSITION IN COMMERCIAL AND INDUSTRIAL ROOFING BUT HAS ONLY A SMALL REGIONAL SHARE OF THE RESIDENTIAL ROOFING BUSINESS MEANWHILE OWENSCORNING HAS A STRONG AND GROWING RESIDENTIAL BUSINESS THIS UNIQUE AGREEMENT ALLOWS US TO DIVEST A BUSINESS THAT DOES NOT HAVE A SOLID FIT WITH OUR REALIGNED GROWTH OBJECTIVES AND FOCUS OUR ATTENTION ON OPPORTUNITIES THAT ARE STRATEGICALLY IMPORTANT TO OUR GOALS SAID GLEN H HINER OWENSCORNING CHAIRMAN OWENSCORNING SAID IT EXPECTS THAT THE TRANSACTION WILL RESULT IN A FIVECENT TO 10CENT INCREASE IN NET INCOME IN 1994 BUT WILL HAVE LITTLE AFFECT ON 1993 EARNINGS IN 1992 NET WAS 168 A SHARE FOR SCHULLER THE SWAP REPRESENTS A FIRST STEP IN AN ATTEMPT TO INCREASE REVENUE AT THE FIBERGLASS COMPANY FOR THE PAST TWO YEARS THE COMPANY HAS FOCUSED ON PRODUCTIVITY IMPROVEMENT RATHER THAN GROWTH SHOWING ONLY A 4 TO 5 ANNUAL SALES INCREASE IN 1992 BUT A 20 INCREASE IN PROFITS NOW WE ARE ABLE TO FOCUS ON THE TOP LINE AND GROW AND INVEST MR KASHNOW SAID 9309170153 930917 LEISURE & ARTS THEATER THE FRESH TASTE OF KLEIST BY DONALD LYONS STOCKBRIDGE MASS EVERY FIVE YEARS OR SO I FEEL AN ITCH TO RENEW THE SUMMERTHEATER EXPERIENCE IT WAS ABOUT THAT MANY YEARS BACK THAT I SAW BLYTHE DANNER AND JOHN SHEA IN THE ANIMAL KINGDOM A 1932 ROMANTIC COMEDY BY PHILIP BARRY AT WILLIAMSTOWN IT WAS A PLEASANT AND HIGHLY PROFESSIONAL EVENT ARCHETYPAL IN FEATURING ATTRACTIVE NEARSTARS IN A SMOOTH AND COMFORTABLE VEHICLE ON A GENTLY STARRY COUNTRY NIGHT WITH A HINT OF A BREEZE IN THE AIR I REMEMBER WE SPENT MOST OF THE INTERMISSION TRYING TO RECALL THE TITLES OF THE TWO MOVIE VERSIONS OF THE ANIMAL KINGDOM AND WHO WAS IN THEM THESE ARE QUINTESSENTIAL SUMMER EXPERIENCES AS DELIGHTFUL AS A PLUNGE IN A WARM POOL OR A GOOD AGATHA CHRISTIE ON THE PORCH SO WHEN I KNEW I WAS GOING TO RETURN TO WESTERN MASSACHUSETTS FOR A FEW DAYS THIS SUMMER IN LATE AUGUST I DECIDED IT WAS THAT TIME AGAIN THE BERKSHIRE THEATRE FESTIVAL HERE WAS THE BEST BET GEOGRAPHICALLY AND IT OFFERED TWO OPTIONS THE BIG SPACE THE PLAYHOUSE NOW CELEBRATING ITS 65TH SEASON HAD THE NOEL COWARD GHOST PLAY BLITHE SPIRIT WITH AN EXCELLENT NEW YORK ACTOR DANIEL GERROLL AND AN ACTRESS ROMA DOWNEY WHO WAS TERRIFIC AS JACKIE O IN A TV BIO IN THE SMALLER 99SEAT UNICORN THEATRE WAS A RARELY SEEN 1807 GERMAN PLAY ABOUT GREEK GODS COMMITTING ADULTERY IN DISGUISE HEINRICH VON KLEIST'S AMPHITRYON I COULD SEE BUT ONE PLAY THE CHOICE MADE ITSELF THE COWARD WAS AS FAMILIAR AS POPCORN THE KLEIST PROMISED A NEW TASTE KLEIST IT WAS I WAS EAGER TO SEE WHAT THE FESTIVAL'S NEW ARTISTIC DIRECTOR JULIANNE BOYD WOULD DO WITH THIS OBSCURE BUT POSSIBLY SEXY GERMAN CLASSIC HAVING ARRIVED FROM NEW YORK WITH OFFBROADWAY'S A MY NAME IS ALICE AND THE BROADWAY JAZZ MUSICAL EUBIE AS DIRECTORIAL CREDITS SHE REPORTEDLY HAD BEEN BRIMMING WITH NEW IDEAS RANGING FROM A NEW HAROLD ARLEN REVUE TO A REVIVAL OF HUGH WHITEMORE'S BROADWAY PLAY BREAKING THE CODE ABOUT THE HOMOSEXUAL COMPUTER PIONEER ALAN TURING SO THE NOEL COWARD THE LAST PLAY ON THE SCHEDULE HAD NOT BEEN A TYPICAL BOYD SELECTION AT ALL WHAT SHE IS UP TO AT THE UNICORN IS MORE PROGRAMMATICALLY INNOVATIVE THAT SPACE IS TO BE A SHOWCASE FOR YOUNG AND MIDCAREER NICE NEW EUPHEMISM DIRECTORS AT WORK ON BOTH CLASSICAL AND NEW PLAYS THE INTENT IS TO PROVIDE A SUMMER SETTING FOR SOME BAREBONES SIMPLE SETS AND COSTUMES ARE EMPHASIZED ARTISTIC AEROBICS NURTURING NEW LEADERSHIP AND VISION IS HOW SHE PUTS IT SORT OF LETTING THE PETER SELLARSES OF TOMORROW WORK OUT THE KINKS AND KICK OUT THE JAMS IN RELATIVE ISOLATION FROM THE CONFORMING PRESSURES OF ACADEMIA AND FROM THE EQUALLY CONFORMING PRESSURES OF COMMERCIAL THEATER AMPHITRYON IS BASED ON THE LEGEND OF HOW HORNY HEAD GOD JUPITER DISGUISES HIMSELF AS THE COMMANDER IN CHIEF OF THEBES AMPHITRYON TO ENJOY ALCMENE AMPHITRYON'S BEAUTIFUL WIFE WHILST HUBBY IS OFF SOLDIERING WHEN HUBBY RETURNS TO BE GREETED BY HIS WIFE WITH ECSTATIC RECOLLECTIONS OF THEIR RECENT NIGHT OF LOVE COMPLICATIONS ENSUE AMPHITRYON IS FINALLY PLACATED ONLY WHEN JUPITER PROMISES THAT THE SEED PLANTED IN ALCMENE WILL EVENTUALLY BECOME THE DEMIGOD HERCULES THE STORY HAD ALREADY BEEN COMICALLY DRAMATIZED BY PLAUTUS IN ANCIENT ROME AND BY MOLIERE KLEIST KEPT THE FARCE INDEED HE GERMANIZED THAT ELEMENT THOROUGHLY WITH COMEDY SERVANTS PRATTLING OF SAUSAGES AND WARMEDUP CABBAGE BUT HE ALSO SHADED IN SOME DARKER COLORS THE FIGURE OF ALCMENE IN PARTICULAR IS DEEPENED FROM A DUPE TO A WOMAN FORCED TO MAKE PHYSICAL AND METAPHYSICAL DISTINCTIONS BETWEEN A HUSBAND AND A GOD WHO RESEMBLES THAT HUSBAND IN EVERY RESPECT JUPITER TOO BECOMES MORE THAN A MERE CUCKOLDING PAGAN DEITY HE FINALLY EMERGES AS A PRINCIPLE OF PANTHEISM POSING THE QUESTION WHY SINCE HE IS EVERYTHING GREECE LIGHT ETHER WATER EVERYTHING HE SHOULD NOT BE WHEN HE CHOOSES AMPHITRYON WHY INDEED KLEIST'S AMPHITRYON IS AN ODD AND INTRIGUING PLAY PART BEDROOM SLAPSTICK AND PART MEDITATION ON THE NATURE OF IDENTITY THE GROUP PRESENTING AMPHITRYON WAS A YOUNG ONE THE DIRECTOR WAS DAVID HERSKOVITS A YALE GRADUATE JUPITER WAS PLAYED BY HANDSOME PHILIP SMITH A THIRDYEAR STUDENT AT THE YALE SCHOOL OF DRAMA MICHAEL BOOTH A RECENT MFA FROM RUTGERS WAS THE HUFFY AMPHITRYON LOVELY FIRSTYEAR YALE SCHOOL OF DRAMA STUDENT SANAA LATHAN MADE AN APPEALING ALCMENE PERKY PUZZLED AND ANGRY THE LOOK OF THE THING WAS POSTMODERN PLAYFUL FAUXMETAL LEATHER BREASTPLATES WORN OVER WHITE TSHIRTS JUPITER SPORTED BAGGY GOLDLAME SHORT PANTS AMPHITRYON BOASTED A PRUSSIAN HELMET IN FELT CLOWNS POPPED THEIR HEADS OUT OF CARDBOARD PANELS IN THE SIMPLE SET TO EXPLAIN MYTHOLOGICAL ALLUSIONS FOR THE AUDIENCE'S BENEFIT OR HELD A BIG J OVER JUPITER TO DISTINGUISH HIM FROM HIS LOOKALIKE AMPHITRYON JUPITER'S COMIC CONSORT THE GODLET MERCURY EXECUTED A COUPLE OF JACKIE GLEASON AWAY WE GO ROUTINES IN SHORT THIS WAS A FRIENDLY PUPPYISH FUN VERSION OF AMPHITRYON SORT OF PETER SELLARS LITE THAT MANAGED THE OOHLALA AND THE SAUSAGE SIDES OF KLEIST PLEASING THE AUDIENCE BUT MORE OR LESS LOST THE QUIETER TROUBLING KLEIST THE KLEIST WHO IS ASKING WHAT IT IS WE DO AND WHO WE ARE WHEN WE LOVE AND/OR MAKE LOVE TO SOMEBODY BUT BETTER SOME OF AMPHITRYON THAN ALL OF BLITHE SPIRIT COWARD IS AS COZY AND UNSURPRISING AS AN OLD COUCH THE HARD WIT OF KLEIST IS AS BRACING AS A GOOD PIECE OF STICKLEY I HAVE NOTHING BUT PRAISE AFFECTION AND HOPE FOR THE SPIRIT OF MS BOYD AND HER COLLEAGUES INCIDENTALLY IT WORKED NICELY TO HIGHLIGHT ONE OF THE PLAY'S THEMES THE SHIFTING PARADOXES OF IDENTITY AND RECOGNITION THAT JUPITER AND ALCMENE WERE PLAYED BY AFRICANAMERICAN ACTORS WHILE AMPHITRYON SUPPOSEDLY IDENTICAL IN APPEARANCE TO JUPITER WAS A CAUCASIAN HERE COLORBLIND CASTING NOT ONLY WAS A GOOD THING IN ITSELF BUT COOPERATED WITH THE PLAY'S VERY POINT ABOUT WHAT MAKES A PERSON MR LYONS IS THE THEATER CRITIC OF THE NEW CRITERION 9309170152 930917 WHO'S NEWS SHOE CARNIVAL INC SHOE CARNIVAL INC EVANSVILLE IND WILLIAM E BINDLEY 52YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PHARMACEUTICALS DISTRIBUTOR BINDLEY WESTERN INDUSTRIES INC WAS ELECTED A DIRECTOR OF THIS FOOTWEAR RETAILER INCREASING BOARD MEMBERSHIP TO FOUR 9309170151 930917 BUSINESS BRIEF UNITED WATER AGREES TO BUY GWC CORP FOR ABOUT 200 MILLION IN STOCK CASH HARRINGTON PARK NJ UNITED WATER RESOURCES INC SAID IT AGREED TO ACQUIRE GWC CORP ONE OF THE US'S LARGEST WATER UTILITY COMPANIES FOR ABOUT 200 MILLION IN STOCK AND CASH THE ACQUISITION WILL NEARLY DOUBLE THE REVENUE OF UNITED WATER AND MAKE IT THE SECONDLARGEST US CLOSELY HELD WATER UTILITY WITH MORE THAN TWO MILLION CUSTOMERS IN 14 STATES UNITED WATER IS THE PARENT OF SPRING VALLEY AND HACKENSACK WATER COMPANIES WITH ABOUT ONE MILLION CUSTOMERS IN NORTHERN NEW JERSEY AND SOUTHERN NEW YORK GWC WILMINGTON DEL IS THE HOLDING COMPANY FOR GENERAL WATERWORKS CORP THE FRENCH WATER COMPANY LYONNAISE DES EAUXDUMEZ OWNS AN 82 STAKE IN GWC THE AGREEMENT CALLS FOR LYONNAISE DES EAUXDUMEZ TO RECEIVE UNITED WATER COMMON STOCK FOR 70 OF ITS HOLDINGS OR 12 UNITED WATER SHARES FOR EACH GWC SHARE AND 5 CONVERTIBLE PREFERENCE STOCK FOR ITS REMAINING INTEREST THE CONVERTIBLE SHARES CAN BE CONVERTED AFTER TWO YEARS ON A STAGGERED BASIS THE PURCHASE WOULD GIVE THE FRENCH CONCERN ABOUT A 26 STAKE IN UNITED WATER MAKING IT THE COMPANY'S LARGEST OUTSIDE SHAREHOLDER SAID UNITED WATER'S PRESIDENT AND CHIEF EXECUTIVE DONALD L CORRELL MINORITY SHAREHOLDERS OF GWC WOULD RECEIVE 12 UNITED WATER COMMON SHARES FOR EVERY SHARE OF GWC FOR 70 OF THEIR STAKE AND THE REMAINING 30 IN EITHER CASH OR 5 PREFERENCE STOCK MR CORRELL SAID THE ACQUISITION DUE TO CLOSE IN THE 1994 FIRST QUARTER WON'T HAVE ANY EFFECT ON 1993 EARNINGS AND WILL HAVE A POSITIVE IMPACT ON 1994 EARNINGS IN 1992 UNITED WATER HAD NET INCOME OF 158 MILLION ON OPERATING REVENUE OF 1649 MILLION GWC HAD NET INCOME OF 116 MILLION ON TOTAL REVENUE OF 1167 MILLION UNITED WATER SAID IT IS ACQUIRING GWC IN ORDER TO EXPAND INTO MARKETS ALL OVER THE COUNTRY WHICH SHOW GREATER POTENTIAL FOR GROWTH THAN THE COMPANY'S CURRENT GEOGRAPHIC AREA IN OVERTHECOUNTER TRADING GWC CLOSED AT 1725 UP 50 CENTS OR 3 WHILE UNITED WATER CLOSED AT 15 UP 125 CENTS ON THE NEW YORK STOCK EXCHANGE 9309170150 930917 WHO'S NEWS DATAWARE TECHNOLOGIES DATAWARE TECHNOLOGIES CAMBRIDGE MASS KURT MUELLER 37 YEARS OLD PRESIDENT WAS NAMED CHAIRMAN OF THIS SOFTWARE CONCERN HE REMAINS CHIEF EXECUTIVE OFFICER JEFFREY O NYWEIDE 37 EXECUTIVE VICE PRESIDENT OF OPERATIONS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER 9309170148 930917 BROKEN HILL'S SALES OF STEEL IN AUSTRALIA ROSE 36 IN AUGUST SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA BROKEN HILL PROPRIETARY CO AUSTRALIA'S MAIN STEEL PRODUCER REPORTED THAT ITS DOMESTIC STEEL SALES ROSE 36 TO 349000 METRIC TONS IN AUGUST FROM 337000 TONS IN JULY AND ROSE 283 FROM 272000 TONS IN AUGUST 1992 DOMESTIC STEEL SALES FOR THE THREE MONTHS TO THE END OF AUGUST ROSE 143 TO 991000 TONS FROM A YEAREARLIER 867000 TONS THE 283 RISE IN DOMESTIC STEEL SALES IN AUGUST 1993 OVER AUGUST 1992 WIDENED FROM A YEARONYEAR GAIN OF 87 IN JULY AND A 70 GAIN IN JUNE BHP SAID IN A STATEMENT THAT ITS EXPORT SALES OF STEEL IN AUGUST ROSE 65 TO 214000 TONS IN AUGUST FROM 201000 TONS IN JULY AND ROSE BY 408 FROM 152000 TONS IN AUGUST 1992 COMMENTING ON OTHER PRODUCTION FIGURES IN AUGUST BHP SAID OIL PRODUCTION FROM ITS MAIN FIELDS IN BASS STRAIT WAS 4 HIGHER THAN THE YEAREARLIER PERIOD OUTPUT OF LIQUEFIED NATURAL GAS FROM THE NORTH WEST SHELF ROSE 243 FROM AUGUST 1992 AND ALSO ROSE A STRONG 24 FOR THE MONTH BASS STRAIT OIL PRODUCTION IN THE QUARTER ENDED AUG 31 ROSE 52 FROM THE YEAREARLIER QUARTER AND LNG OUTPUT FROM THE NORTH WEST SHELF WAS 77 HIGHER BHP'S SHARE OF OIL PRODUCTION FROM THE KUTUBU FIELD IN THE HIGHLANDS REGION OF PAPUA NEW GUINEA TOTALED 359000 BARRELS IN AUGUST A FALL OF 22 FROM ITS SHARE OF PRODUCTION IN JULY OF 367000 BARRELS OF OIL ITS SHARE OF KUTUBU OIL OUTPUT IN AUGUST WAS 173 HIGHER THAN IN AUGUST 1992 COPPER PRODUCTION FROM THE ESCONDIDA MINE IN CHILE ROSE 182 FROM AUGUST 1992 PRODUCTION ROSE 29 IN THE AUGUST QUARTER FROM THE YEAREARLIER QUARTER BHP SAID IT WILL STOP OIL AND GAS OUTPUT AT ITS JABIRU VENTURE FLOATING PRODUCTION VESSEL IN THE TIMOR SEA OFF NORTHERN AUSTRALIA FOR EIGHT WEEKS FROM EARLY OCTOBER THE SHIP WHICH PRODUCES 20000 BARRELS OF OIL A DAY WILL SAIL TO SINGAPORE FOR MAINTENANCE WORKS DESIGNED TO INCREASE THE VESSEL'S EFFICIENCY A COMPANY SPOKESMAN SAID THE MAINTENANCE WORK WILL COST AROUND NINE MILLION AUSTRALIAN DOLLARS US58 MILLION THE JABIRU VENTURE IS THE KEY ELEMENT IN A JOINT VENTURE BETWEEN BHP AND SIX PARTNERS DEVELOPING THE JABIRU FIELD ABOUT 430 MILES NORTH OF DARWIN 9309170147 930917 HEINEKEN TO BUILD BREWERY IN THAILAND WITH A CONSORTIUM AMSTERDAM DUTCH BREWER HEINEKEN NV IS AIMING TO BOLSTER ITS POSITION IN THE GROWING THAI BEER MARKET BY BUILDING A BREWERY NEAR BANGKOK JOINTLY WITH A CONSORTIUM OF ASIAN COMPANIES THE NEW BREWERY WITH AN INITIAL CAPACITY OF 500000 HECTOLITERS OR 13209000 GALLONS WILL BE HEINEKEN'S FIRST MOVE INTO PRODUCING IN THAILAND WHERE HIGH IMPORT DUTIES HAVE MADE IT DIFFICULT FOR THE COMPANY THE WORLD'S SECONDLARGEST BREWER AFTER ANHEUSERBUSCH COS OF THE US TO CAPTURE MARKET SHARE INVESTMENT FOR THE FIRST PHASE OF THE HEINEKEN BREWERY WILL BE 96 MILLION SINGAPORE DOLLARS US601 MILLION CONSTRUCTION WILL START LATER THIS YEAR AND THE BREWERY IS EXPECTED TO BE OPERATIONAL WITHIN TWO YEARS HEINEKEN SAID HEINEKEN'S 43OWNED ASIA PACIFIC BREWERIES LTD IN SINGAPORE WILL HOLD A 35 STAKE IN THE NEW THAI BREWERY OTHER MEMBERS OF THE CONSORTIUM WILL INCLUDE THE THAI LIFE INSURANCE/CHAIYAWAN GROUP WHICH WILL HOLD A 50 STAKE THAI PURE DRINKS CO AND THE THAI MILITARY BANK 5 EACH AND 5 HELD BY A NUMBER OF SMALLER SHAREHOLDERS TOTAL CAPITAL ISSUED WILL BE AROUND S48 MILLION THE DUTCH BREWER SAID THE BREWERY'S CAPACITY WILL BE INCREASED TO ONE MILLION HECTOLITERS IN PHASES DEPENDING ON INTRODUCTION OF OTHER BRANDS BESIDES HEINEKEN AND BEER MARKET DEVELOPMENTS HEINEKEN SAID THE BREWERY WILL BE HEINEKEN'S SECOND VENTURE WITH ASIAN PACIFIC BREWERIES IN THE AREA WHICH HEINEKEN CONSIDERS AN IMPORTANT REGION FOR FUTURE EXPANSION IN 1991 HEINEKEN AND ASIAN PACIFIC BREWERIES BUILT A BREWERY IN HO CHI MINH CITY VIETNAM THE VIETNAMESE BREWERY IS NOW OPERATIONAL IT RECENTLY AGREED TO BUILD A BREWERY IN CHINA HEINEKEN HAS BEEN LOOKING AT BROADENING ITS SPECIALTY BEER LINES IN HOPES OF CAPTURING MORE OF ITS MATURE EUROPEAN AND NORTH AMERICAN MARKETS 9309170146 930917 PEUGEOT CITROEN TO CUT 5000 JOBS UNION LEADERS SAY SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH AUTO MAKER PSA PEUGEOT CITROEN SA WILL CUT AT LEAST 5000 JOBS NEXT YEAR BECAUSE OF THE SLUMPING EUROPEAN CAR MARKET ACCORDING TO UNION LEADERS AT THE COMPANY THE GROUP'S AUTOMOBILES PEUGEOT UNIT WILL REDUCE ITS PAYROLLS AT SIX FACTORIES BY A TOTAL OF MORE THAN 4000 WHILE THE CITROEN DIVISION IS LIKELY TO SLICE AT LEAST 1000 POSITIONS THE UNION REPRESENTATIVES SAID A SPOKESMAN FOR PEUGEOT IN PARIS SAID THE COMPANY COULDN'T COMMENT ON THE REPORTS AS FRENCH LAW DICTATES THAT LABOR REDUCTIONS MUST FIRST BE DISCUSSED WITH LABOR UNIONS BEFORE BEING ANNOUNCED THE PEUGEOT SPOKESMAN DID HOWEVER CONFIRM THAT UNION REPRESENTATIVES HAD BEEN CALLED TO A MEETING NEXT TUESDAY TO DISCUSS MEASURES NECESSARY TO RAISE PRODUCTIVITY AT PEUGEOT WE ARE OBLIGED TO INCREASE OUR PRODUCTIVITY AND THAT MEANS ONLY ONE OF TWO THINGS EITHER MORE VOLUME WHICH IS IMPOSSIBLE IN THIS MARKET OR LESS PERSONNEL THE SPOKESMAN SAID A NEW SOCIAL PLAN WILL BE DISCUSSED WITH THE UNIONS WHEN THEY MEET WITH PEUGEOT MANAGEMENT NEXT WEEK THE SPOKESMAN SAID HE STRESSED THAT JOB REDUCTIONS WOULD LIKELY BE ACCOMPLISHED THROUGH EARLY RETIREMENT AND OTHER MEASURES TO PREVENT OUTRIGHT LAYOFFS A SIMILAR MEETING HASN'T YET BEEN SCHEDULED REGARDING CITROEN WORKERS THE SPOKESMAN SAID NOTING THAT HE COULDN'T CONFIRM REPORTS OF 1000 JOBS TO BE CUT AT THAT DIVISION EUROPE'S AUTO INDUSTRY THE CONTINENT'S BIGGEST EMPLOYER IS SUFFERING THROUGH ITS WORST YEAR IN THREE DECADES PROMPTING COMPANIES TO RESTRUCTURE SALES IN EUROPEAN COUNTRIES EXCLUDING BRITAIN HAVE FALLEN BY ABOUT 18 SO FAR THIS YEAR FROM THE SAME PERIOD IN 1992 LAST YEAR 134 MILLION VEHICLES WERE SOLD IN EUROPE PEUGEOT CITROEN IS EUROPE'S THIRDLARGEST AUTO MAKER AFTER VOLKSWAGEN AG OF GERMANY AND GENERAL MOTORS EUROPE 9309170145 930917 CANADIAN STEEL OUTPUT DROPS OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 272996 METRIC TONS IN THE WEEK ENDED SATURDAY A 11 DECLINE FROM 275968 TONS THE PREVIOUS WEEK AND A 29 DROP FROM 281217 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 10025754 TONS A 58 INCREASE FROM 9478653 TONS A YEAR EARLIER 9309170144 930917 CANADA TRADE SURPLUS NARROWS OTTAWA CANADA'S TRADE SURPLUS NARROWED TO 101 BILLION CANADIAN DOLLARS US770 MILLION IN JULY FROM C113 BILLLION IN JUNE STATISTICS CANADA A GOVERNMENT AGENCY SAID EXPORTS ROSE 02 TO A SEASONALLY ADJUSTED C1485 BILLION FROM C1483 BILLION IN JUNE IMPORTS ROSE 11 TO C1385 BILLION FROM C1370 BILLION IN JUNE THE US TOOK 808 OF CANADA'S JULY EXPORTS AND SUPPLIED 725 OF CANADA'S IMPORTS 9309170143 930917 LOMAS UNIT TO PREPAY NOTES DALLAS LOMAS FINANCIAL CORP SAID ITS SUBSIDIARY ST LENDING INC WOULD MAKE A 174 MILLION PRINCIPAL PREPAYMENT ON ITS SECURED NOTES DUE 1996 FUNDS FOR THE SEPT 30 PREPAYMENT TO HOLDERS OF RECORD SEPT 20 WILL COME FROM A LIQUIDITY SUPPORT TRUST THAT LOMAS IS TERMINATING THE COMPANY SAID THE PREPAYMENT WILL REDUCE THE PRINCIPAL BALANCE OF THE NOTES TO 926 MILLION LOMAS ADDED 9309170142 930917 AMOCO UNIT GETS OIL CONCESSION ST JOHN'S NEWFOUNDLAND AMOCO CORP'S CANADIAN DIVISION WAS AWARDED A 191079ACRE OIL CONCESSION NEAR THE HIBERNIA OIL FIELD OFF CANADA'S EAST COAST THE COMPANY AGREED TO SPEND 29 MILLION CANADIAN DOLLARS US22 MILLION EXPLORING THE CONCESSION IN THE NEXT FIVE YEARS THERE AREN'T ANY WELLS BEING DRILLED IN THE AREA OFF NEWFOUNDLAND 9309170141 930917 PHILIPPINE TRADE DEFICIT MANILA PHILIPPINES THE PHILIPPINES' TRADE DEFICIT IN JULY WIDENED TO 568 MILLION FROM 423 MILLION IN JUNE THE NATIONAL STATISTICS OFFICE REPORTED THE GOVERNMENT SAID BOTH EXPORTS AND IMPORTS POSTED THEIR HIGHEST MONTHLY PERFORMANCE SO FAR BUT IMPORTS ROSE MORE SIGNIFICANTLY THAN EXPORTS IN ANTICIPATION OF THE SEASONAL INCREASE IN CONSUMER SPENDING DURING THE CHRISTMAS SEASON 9309170140 930917 WESTINGHOUSE GETS CONTRACT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT RECEIVED A 30 MILLION CONTRACT TO SUPPLY A POWER PLANT TO EMPIRE DISTRICT ELECTRIC CO OF JOPLIN MO BY JUNE 1995 THE COMBUSTION TURBINE PLANT WILL BE POWERED BY NATURAL GAS AND IS DESIGNED WITH CONTROLS TO LIMIT NITROUS OXIDE EMISSIONS IT WILL BE LOCATED WEST OF JOPLIN AND WILL SERVE CONSUMERS IN SOUTHWEST MISSOURI KANSAS OKLAHOMA AND ARKANSAS 9309170139 930917 BURMAH CASTROL ACQUISITION LONDON UK PETROLEUMPRODUCTS COMPANY BURMAH CASTROL PLC SAID IT RECEIVED SHAREHOLDER AND GOVERNMENT PERMISSION TO RAISE ITS OWNERSHIP OF CASTROL INDIA TO 51 FROM 40 BURMAH CASTROL SAID IT WILL PAY 81 MILLION 125 MILLION USING SOME OF THE CASH IT SAVED BY PAYING ITS 1993 HALFYEAR DIVIDEND IN SHARES IT HAD ANNOUNCED ITS INTENTION TO INCREASE THE HOLDING IN JULY CASTROL INDIA MAKES LUBRICANTS 9309170138 930917 TRANS FINANCIAL BANCORP OFFERING BOWLING GREEN KY TRANS FINANCIAL BANCORP SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED OFFERING OF 33 MILLION OF 10YEAR NONCALLABLE SUBORDINATED DEBENTURES THEY HAVE A COUPON OF 725 AND WERE PRICED AT PAR PROCEEDS WILL BE USED TO REPAY THE BANK HOLDING COMPANY'S 12 MILLION BANK DEBT ASSOCIATED WITH ITS JULY 6 ACQUISITION OF TRANS KENTUCKY BANCORP AND FOR GENERAL CORPORATE PURPOSES INCLUDING ADDITIONAL CAPITALIZATION OF SUBSIDIARIES AND POSSIBLE ACQUISITIONS THE ISSUE WAS COMANAGED BY MORGAN KEEGAN & CO AND JC BRADFORD & CO 9309170137 930917 WHO'S NEWS RASTEROPS CORP RASTEROPS CORP SANTA CLARA CALIF PAUL J SMITH 41 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS COMPUTEREQUIPMENT CONCERN AND WAS NOMINATED FOR ELECTION TO THE BOARD MR SMITH THE COMPANY'S PRESIDENT SUCCEEDS RASTEROPS COFOUNDER KIETH E SORENSON 46 WHO WILL RETAIN HIS TITLE OF CHAIRMAN 9309170136 930917 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN WILLIAM J CONATY 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES SUCCEEDING JACK O PEIFFER 60 WHO IS RETIRING MR CONATY HAS BEEN VICE PRESIDENT OF HUMAN RESOURCES AT GE AIRCRAFT ENGINES IN EVENDALE OHIO GE IS AN ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING COMPANY 9309170135 930917 POLITICS & POLICY AMID TROUBLED TIMES 3 UNKNOWNS VIE TO SUCCEED ATLANTA'S POLITICAL GIANTS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA WITH ITS CRUSHING POVERTY AND CRUMBLING INFRASTRUCTURE NOT TO MENTION THE MULTIMILLIONDOLLAR FACE LIFT REQUIRED BEFORE THE OPENING OF THE 1996 OLYMPICS HERE THIS CITY WOULD SEEM TO NEED A STRONG AND PROMINENT MAYOR AS NEVER BEFORE INSTEAD THE THREE MAJOR CANDIDATES RUNNING TO SUCCEED MAYOR MAYNARD JACKSON ARE RELATIVE UNKNOWNS ANY MISSTEP BY AN UNSEASONED MAYOR COULD LEAVE ATLANTA FOUNDERING AT A TIME WHEN A SINGLE EVENT THE SUMMER OLYMPICS COULD SET ITS COURSE FOR YEARS TO COME WE'RE GOING TO BE ON THE WORLD STAGE SAYS WILLIAM IDE A LOCAL ATTORNEY WHO IS PRESIDENT OF THE AMERICAN BAR ASSOCIATION AND A MEMBER OF THE ATLANTA OLYMPIC COMMITTEE'S BOARD WE NEED A GREAT SALESPERSON LIKE WE'VE HAD IN THE PAST THE ABSENCE OF A DOMINANT CANDIDATE IS UNUSUAL FOR ATLANTA WHICH FOR 20 YEARS HAS BEEN LED BY TWO PROMINENT EXPERIENCED POLITICIANS MR JACKSON THE FIRST BLACK ELECTED MAYOR OF A MAJOR SOUTHERN CITY AND ANDREW YOUNG FORMER UNITED NATIONS AMBASSADOR BUT IN RECENT MONTHS ATLANTA HAS WATCHED ITS BIGGEST HITTERS QUIETLY STEP BACK FROM THE PLATE IN JUNE MR JACKSON CONSIDERED A SURE BET FOR REELECTION STUNNED THE CITY WITH HIS DECISION NOT TO RUN CITING HEALTH PROBLEMS AT ONCE BUSINESS LEADERS MOVED TO DRAFT MR YOUNG BUT DESPITE POLLS SHOWING HIM WITH A BETTER THAN 2TO1 MARGIN OVER HIS CLOSEST RIVAL THE 61YEAROLD BUSINESSMAN DECLINED TO RUN AT ONE POINT MARTIN L KING III THE SON OF THE SLAIN CIVILRIGHTS LEADER CONSIDERED A MAYORAL BID BUT DECIDED TO RUN FOR CHAIRMAN OF THE COUNTY COMMISSION THERE ARE NOW THREE MAJOR CONTESTANTS IN THE NONPARTISAN RACE MICHAEL LOMAX CHAIRMAN OF THE FULTON COUNTY COMMISSION AND BILL CAMPBELL AND MYRTLE DAVIS BOTH CITY COUNCIL MEMBERSNONE OF WHOM HAS A STRONG LEAD IN POLLS SOME POLITICAL OBSERVERS SAY THE CITY KNOWN FOR ITS RELENTLESS BOOSTERISM WILL NEED TO DEAL WITH MUCH MORE THAN ECONOMIC DEVELOPMENT THE NEXT MAYOR WILL HEAD THE NINTHPOOREST CITY IN THE COUNTRY 45 OF THE HOUSEHOLDS IN ATLANTA HAVE YEARLY INCOMES OF 15000 OR LESS A LONGNEGLECTED SEWER SYSTEM RECENTLY SPAWNED A GAPING SINKHOLE RESULTING IN TWO DEATHS ON THE EDGE OF DOWNTOWN SOME 30000 RESIDENTS HAVE FLED TO THE SURROUNDING SUBURBS IN THE PAST 10 YEARS FURTHER SHRINKING THE CITY'S TAX BASE AND ATLANTA'S SCHOOLS ARE IN DIRE NEED OF A COMPLETE OVERHAUL THEN THERE'S THE MAMMOTH TASK OF PREPARING FOR THE OLYMPICS WHILE THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES A PRIVATE ORGANIZATION IS RESPONSIBLE FOR STAGING THE SPECTACLE ATLANTA MUST DEVELOP AND FIND THE TENS OF MILLIONS OF DOLLARS TO PAY FOR NEW PARKS PEDESTRIAN MALLS A NEW RAILROAD TERMINAL AND NEW STREETS AND BRIDGES WHAT'S MORE THE MAYOR MUST ACT AS AN ARBITER BETWEEN THE LOCAL OLYMPIC COMMITTEE WITH A HALFBILLION DOLLARS IN CONSTRUCTION PROJECTS AND CITY NEIGHBORHOODS WITH THEIR NUMEROUS CONCERNS ABOUT THOSE PROJECTS PERHAPS THE BEST KNOWN OF THE THREE CANDIDATES ALL DEMOCRATS IS MR LOMAX THE 46YEAROLD CHAIRMAN OF THE COUNTY COMMISSION IN ATLANTA MR LOMAX HAS THE NAME RECOGNITION HIS TWO RIVALS LACK BUT MUCH OF THAT STEMS FROM A RUN AGAINST MR JACKSON IN 1989 WHEN MR LOMAX PULLED OUT OF THE RACE WHEN IT BECAME CLEAR HE COULDN'T WIN AND THUS INFURIATED HIS SUPPORTERS AS CHAIRMAN OF THE COUNTY COMMISSION MR LOMAX AN ENGLISH PROFESSOR BY TRADE PROBABLY IS THE MOST EXPERIENCED OF THE CANDIDATES BUT HIS WELLKNOWN LOVE OF THE ARTS HE FOUNDED THE NATIONAL BLACK ARTS FESTIVAL IN ATLANTA AND HIS TASTE FOR TAILORED SUITS AND GOURMET FOOD HAVE APPEARED AT TIMES TO KEEP VOTERS AT ARM'S LENGTH INDEED THE MOST IMPORTANT ISSUE FACING ATLANTA HE SAYS ISN'T POVERTY OR CRIME OR THE OLYMPICS BUT RATHER THE CHALLENGE OF HARNESSING THE CITY'S INTELLECTUAL POTENTIAL MR CAMPBELL A 12YEAR VETERAN OF THE CITY COUNCIL IS SEEN AS THE CONSUMMATE INSIDER AND THE HANDPICKED SUCCESSOR OF MR JACKSON THE SON OF A JANITOR WHO WENT TO VANDERBILT UNIVERSITY AND DUKE LAW SCHOOL MR CAMPBELL 40 MAKES MUCH OF HIS HUMBLE BEGINNINGS AND HIS ABILITY TO SEE FROM BOTH SIDES OF THE FENCE RICH AND POOR INDEED ONE OF HIS STRONGEST SUITS OBSERVERS SAY HAS BEEN HIS ABILITY TO BALANCE THE DIVERSE INTERESTS OF HIS COUNCIL DISTRICT WHICH INCLUDE THE AFFLUENT VIRGINIAHIGHLANDS NEIGHBORHOOD AND THE POORER MOSTLY BLACK AREAS AROUND ATLANTA'S BASEBALL STADIUM THE GOVERNMENT IN ATLANTA HAS PERFORMED THE RARE TASK OF ALIENATING BOTH THE BUSINESS COMMUNITY AND THE POORER PEOPLE SAYS MR CAMPBELL AN ATTORNEY WELL I'VE KNOWN BOTH ENDS OF THE SPECTRUM I CAN MAKE EVERYONE FEEL INCLUDED HIS EFFORTS SEEMINGLY TO PLEASE EVERYONE HOWEVER ALSO MAY WORK AGAINST HIM BILL CAMPBELL HAS BEEN RUNNING FOR MAYOR WHILE SITTING ON THE CITY COUNCIL SAYS RC LOUDERMILK CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF AARON RENTS A FURNITURERENTAL CONCERN BASED IN ATLANTA RATHER THAN VOTING FOR THE BEST INTERESTS OF THE CITY PROBABLY THE LEAST RECOGNIZED OF THE THREE IS MYRTLE DAVIS WHO BEAT EVERYONE TO THE PUNCH BY ANNOUNCING HER INTENTION TO RUN FOR MAYOR BEFORE MR JACKSON DROPPED OUT MRS DAVIS IS SEEN BY MANY IN THE BUSINESS ESTABLISHMENT AS ATLANTA'S BEST HOPE AS HEAD OF THE ALLIMPORTANT CITY COUNCIL FINANCE COMMITTEE THE 61YEAROLD FORMER PHARMACIST IS WELLVERSED IN THE BUDGET PROCESS AND PERHAPS MOST IMPORTANT SHE HAS RECEIVED SUPPORT FROM MR YOUNG THE BUSINESS COMMUNITY'S PATRON SAINT WHO CALLED HER THE NEXT MAYOR OF ATLANTA IF NOTHING ELSE THE DEARTH OF BIG NAMES MEANS THIS IMAGECONSCIOUS CITY MAY HAVE TO LOOK AT SUBSTANCE OVER STYLE THE PROBLEM IN ATLANTA IS WE WANT SOMEONE WHO IS AS HIGHPROFILE AS ANDY YOUNG OR MAYNARD JACKSON SAYS WILLIAM BOONE A POLITICAL SCIENCE PROFESSOR AT CLARK ATLANTA UNIVERSITY THAT'S A RATHER INTERESTING WAY TO JUDGE CANDIDATES THERE ARE DAYTODAY PROBLEMS THIS CITY NEEDS TO DEAL WITH THAT HAVE NOTHING TO DO WITH BEING HIGHPROFILE 9309170134 930917 NORWAY CENTRAL BANK SAYS COUNTRY SHOWS SIGNS OF A REBOUND SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM THE NORWEGIAN ECONOMY IS REBOUNDING AND INDUSTRY COMPETITIVENESS IS RISING SAID NORGES BANK THE CENTRAL BANK OF NORWAY IN ITS QUARTERLY ECONOMIC REVIEW THE GRADUAL UPTURN THIS YEAR REFLECTS LOWER INTEREST RATES IMPROVEMENT IN FINANCIAL INSTITUTIONS' PERFORMANCE AND FINANCIAL CONSOLIDATION IN THE BUSINESS AND HOUSEHOLD SECTOR AT THE SAME TIME THE COST COMPETITIVENESS OF THE BUSINESS SECTOR HAS IMPROVED IN THE WAKE OF LOW WAGE SETTLEMENTS A REDUCTION IN PAYROLL TAXES AND A MODERATE DEPRECIATION OF THE KRONE THE CENTRAL BANK SAID ADDING THAT FOR THE FULL YEAR COMPETITIVENESS MAY IMPROVE BY 3 TO 5 THE CENTRAL BANK SAID THE COLLAPSE OF THE EUROPEAN EXCHANGE RATE MECHANISM HAD ONLY HAD A MINOR IMPACT ON THE NORWEGIAN FOREIGNEXCHANGE MARKET AND OVER THE SUMMER NORWEGIAN INTEREST RATES FELL FROM A LEVEL WHICH WAS VERY LOW AT THE OUTSET AFTER AN INITIAL DEPRECIATION FOLLOWING THE FLOATING OF THE KRONE DEC 10 THE CURRENCY HAS REMAINED VERY STABLE AGAINST EUROPEAN CURRENCIES SAID THE CENTRAL BANK THE KRONE HAS DEPRECIATED BY ABOUT 3 AGAINST THE EUROPEAN CURRENCY UNIT SINCE THE FLOATING DESPITE THE INFLATIONARY PRESSURES GENERATED BY THE DEPRECIATION OF THE KRONE AND A TWO PERCENTAGE POINT INCREASE IN VALUE ADDED TAX THE RISE IN PRICES HAS REMAINED LOW AND IS NOW 22 ON AN ANNUAL BASIS THE CENTRAL BANK SAID FAVORABLE ECONOMIC FUNDAMENTALS IN DICATE THAT ECONOMIC POLICY CAN BE DIRECTED TOWARD ACHIEVING MORE LONGTERM OBJECTIVES THAN IN OTHER EUROPEAN COUNTRIES WITH GREATER IMBALANCES IN THEIR ECONOMIES THE CENTRAL BANK SAID FISCAL POLICY SHOULD AIM AT REDUCING THE PRESENT BUDGET DEFICIT OF ABOUT 35 OF GROSS DOMESTIC PRODUCT IN ORDER TO CURB THE NORWEGIAN ECONOMY'S HEAVY RELIANCE ON OIL REVENUE THE CENTRAL BANK CONCLUDED 9309170133 930917 PRESTOWITZ SHIFTS TO SUPPORT OF NAFTA RECONSIDERS PREDICTIONS OF JOB LOSSES BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CLYDE PRESTOWITZ WHOSE PROMINENT TRADE THINK TANK WAS ONE OF THE FEW PREDICTING A BIG JOB LOSS FROM THE NORTH AMERICAN FREE TRADE AGREEMENT NOW SAYS THOSE NUMBERS MAY BE WRONG AND THE PACT SHOULD BE RATIFIED LATE LAST FALL MR PRESTOWITZ'S ECONOMIC STRATEGY INSTITUTE PREDICTED THAT NAFTA WOULD LEAD TO A LOSS OF BETWEEN 32000 AND 220000 JOBS IN THE YEAR 2002 IN ADDITION THE THINK TANK CALCULATED THAT NAFTA WOULD WORSEN THE US TRADE BALANCE BY BETWEEN 13 BILLION AND 88 BILLION NOW MR PRESTOWITZ SAID I THINK IN THE LONGRUN NAFTA WILL BE A PLUS THE REASON FOR THE REVERSAL HE FIGURES THAT MORE US COMPANIES WILL SHUT DOWN BRANCHES IN MEXICO AND RETURN HOME IF US COMPANIES CAN EXPORT TO MEXICO WITHOUT TARIFFS HE REASONS ONE RATIONALE FOR LOCATING THERE DISAPPEARS MR PRESTOWITZ ALSO THINKS SOME WILL MOVE THEIR ASIAN MANUFACTURING FACILITIES TO MEXICO MAKING IT MORE LIKELY THAT THEY WOULD IMPORT COMPONENTS FROM THE US IN EITHER CASE THE RESULT WOULD BE MORE US JOBS IN ADDITION HE SAID IN AN INTERVIEW VARIOUS NAFTA RULES ENCOURAGING NORTH AMERICAN PRODUCTION WOULD PROMPT US RATHER THAN ASIAN INVESTMENT IN MEXICO THE MEXICAN CONNECTION WILL LET US BETTER COMPETE WITH ASIANS BY HELPING US COMPANIES REDUCE COSTS AND INCREASE EXPORTS HE SAID THE POLITICS OF NAFTA ARE SO POLARIZED THAT MR PRESTOWITZ'S REEVALUATION BY ITSELF ISN'T LIKELY TO PROMPT ANY LAWMAKER TO VOTE FOR THE PACT BUT HE HAS A STRONG REPUTATION AS A PROPONENT OF TOUGH US TRADE POSITIONS AND HAS TIES TO MANY NAFTA OPPONENTS THE ADMINISTRATION AND NAFTA SUPPORTERS ARE BOUND TO USE MR PRESTOWITZ'S COMMENTS TO TRY TO MARGINALIZE ROSS PEROT AND PORTRAY AS INTELLECTUALLY SUSPECT THE TEXAS BILLIONAIRE'S PREDICTION THAT NAFTA WOULD PUT 58 MILLION US JOBS AT RISK THE DEBATE OVER THE TRADE PACT IN CONGRESS WILL BE FOUGHT IN LARGE MEASURE OVER THE QUESTION OF WHETHER NAFTA WOULD COST THE US JOBS THE ADMINISTRATION WILL PROBABLY SAY LOOK CLYDE PRESTOWITZ CHANGED HIS MIND' AS PART OF THEIR PRONAFTA CAMPAIGN SAID JEFF FAUX PRESIDENT OF ECONOMIC POLICY INSTITUTE A WASHINGTON RESEARCH GROUP THAT PREDICTS A 550000JOB LOSS FROM NAFTA MR PRESTOWITZ SAID THAT HE ISN'T UNDER ANY PRESSURE BY THE ADMINISTRATION OR HIS THINK TANK'S FINANCIAL BACKERS TO ENDORSE NAFTA THE ECONOMIC STRATEGY INSTITUTE'S SUPPORTERS INCLUDE SUCH NAFTA PROPONENTS AS CHRYSLER CORP AND NAFTA OPPONENTS AS MILLIKEN & CO THE BIG TEXTILE MAKER IN ITS STUDY LAST FALL THE ECONOMIC STRATEGY INSTITUTE PREDICTED GAINS FOR THE US ECONOMY AND AN INCREASE IN JOBS FROM NAFTA IN THE YEAR 1998 AS MEXICO IMPORTED MORE USMADE CAPITAL GOODS BUT THOSE SURPLUSES WOULD TURN TO DEFICITS IN 2002 THE THINK TANK PREDICTED AS NEW MEXICAN PLANTS CHURNED OUT EXPORTS DESTINED FOR NORTH OF THE BORDER THE STUDY WHICH CAME OUT WHEN MR PRESTOWITZ WAS BEING CONSIDERED BY THE CLINTON TRANSITION TEAM FOR THE JOB OF US TRADE REPRESENTATIVE GRUDGINGLY SAID THE PACT SHOULD BE RATIFIED BUT IT URGED THE NEW ADMINISTRATION NEGOTIATE CHANGES IN NAFTA CONCERNING THE AUTO AND ENERGY SECTORS NEITHER OF WHICH THE ADMINISTRATION DID I DON'T WANT TO DISCLAIM OUR STUDY MR PRESTOWITZ SAID BUT HAVING TALKED TO A LOT OF PEOPLE IN INDUSTRY OUR FEELING IS THAT THERE MAY BE A SUBSTANTIAL JOB MOVEMENT TO THE US AS COMPANIES CLOSE OLD INEFFICIENT PLANTS IN MEXICO MOREOVER MR PRESTOWITZ WHO MADE HIS REPUTATION AS A CRITIC OF JAPANESE TRADE PRACTICES SAID THE PROTRACTED NAFTA FIGHT DRAWS ATTENTION FROM ASIA WHICH IS RUNNING HUGE TRADE SURPLUSES WITH THE US THAT'S A SUCKING ROAR HE SAID ALLUDING TO MR PEROT'S COMMENT THAT NAFTA WOULD PRODUCE A GIANT SUCKING SOUND OF JOBS HEADING TO MEXCIO WE'RE SO USED TO IT THAT IT'S DEAFENED US MR PRESTOWITZ SAID 9309170132 930917 GALILEO COVIA SYSTEMS FOR AIRLINE BOOKINGS COMPLETE THEIR MERGER CHICAGO CONSOLIDATION IN THE AIRLINE COMPUTERRESERVATION BUSINESS TOOK ANOTHER STEP FORWARD YESTERDAY WITH THE COMPLETION OF A MERGER OF COVIA A BIG USBASED BOOKING SERVICE AND EUROPE'S GALILEO SYSTEM THE MOVE WHICH HAS BEEN IN THE WORKS SINCE 1991 WAS FORMALLY ANNOUNCED LAST JANUARY YESTERDAY'S COMPLETION CLEARS THE WAY FOR GALILEO'S DATABASE IN SWINDON ENGLAND TO BE MOVED TO COVIA'S DATA CENTER NEAR DENVER LATER THIS MONTH FINANCIAL TERMS WEREN'T DISCLOSED SPOKESWOMEN SAID THE MERGED SYSTEM TO BE CALLED GALILEO INTERNATIONAL WILL BE BASED IN ROSEMONT ILL THE BOOKING TERMINALS INSTALLED AT TRAVEL AGENCIES AROUND THE WORLD WILL CONTINUE TO CARRY THE GALILEO NAME AND PRODUCT IN EUROPE AFRICA AND THE MIDDLE EAST THE GEMINI TRADE NAME IN CANADA AND COVIA'S TRADE NAME AND PRODUCT APOLLO IN MOST OF THE REST OF THE AMERICAS BOTH GALILEO AND APOLLO PRODUCTS ARE AVAILABLE IN VARIOUS COUNTRIES IN ASIA AND THE PACIFIC THE TWO SYSTEMS HAVE HAD A RELATIONSHIP SINCE 1988 WHEN USAIR GROUP INC AND FOUR EUROPEAN AIRLINES THAT WERE AMONG GALILEO'S FOUNDERS PURCHASED 49 OF COVIA FROM OWNER UAL CORP PARENT OF UNITED AIRLINES FOR 500 MILLION THE MERGED ENTITY IS OWNED BY 11 AIRLINES THE LARGEST SHAREHOLDERS ARE UNITED WITH A 38 STAKE FOLLOWED BY BRITISH AIRWAYS 15 SWISSAIR 13 KLM ROYAL DUTCH AIRLINES 12 USAIR 11 AND ITALY'S ALITALIA 87 FOUR SMALL EUROPEAN CARRIERS PLUS AIR CANADA ROUND OUT THE OWNERSHIP GALILEO INTERNATIONAL CLAIMS TO BE THE WORLD'S LARGEST COMPUTER RESERVATIONS SYSTEM WITH SUBSCRIBERS AT MORE THAN 30400 TRAVEL AGENCIES OR ABOUT 30 OF THE WORLD MARKET GALILEO APOLLO AND GEMINI OFFER BOOKINGS ON MORE THAN 400 AIRLINES 9309170131 930917 ROADMASTER BUYS FLEXIBLE FLYER ENGLEWOOD COLO ROADMASTER INDUSTRIES INC SAID IT COMPLETED THE ACQUISITION OF FLEXIBLE FLYER CO AND DISCLOSED THAT THE PURCHASE WAS FOR 244 MILLION IN A COMBINATION OF CASH NEWLY ISSUED STOCK AND ASSUMPTION OF LIABILITIES ROADMASTER A TOY MAKER SAID IT WOULD ISSUE 617165 COMMON SHARES VALUED AT 2 MILLION AS PART OF THE PAYMENT FOR FLEXIBLE FLYER A DIVISION OF CLOSELY HELD PAR INDUSTRIES INC MEDINA OHIO FLEXIBLE FLYER IS A 104YEAROLD MAKER OF CHILDREN'S SLEDS AND GYM SETS 9309170130 930917 COMMODITIES SOME HOPE TO REAP PROFIT IF GRAINS RALLY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE TIGHTEST US GRAIN SUPPLIES IN YEARS AND FORECASTS OF WET WEATHER DURING THE FALL HARVEST ARE MAKING GRAIN FUTURES AN ATTRACTIVE PLAY FOR AGGRESSIVE INVESTORS EXPERTS SAY PRICES OF SOYBEAN AND CORN FUTURES CONTRACTS TYPICALLY BOTTOM OUT JUST BEFORE HARVEST BEGINS IN MIDSEPTEMBER AND THEN RALLY MODESTLY AS HARVEST PROCEEDS BUT FOR VARIOUS REASONS MANY ANALYSTS THINK THIS YEAR'S HARVEST RALLY COULD BE STRONGER THAN NORMAL I'M LOOKING FOR A RALLY TO A MINIMUM OF 667 A BUSHEL IN NOVEMBER SOYBEANS SAYS ANNE FRICK SOYBEAN ANALYST FOR PRUDENTIAL SECURITIES IT COULD GO AS HIGH AS 680 DEPENDING ON WHAT HAPPENS WITH CROP SIZE IN FACT WITH A DOWNTURN IN PRODUCTION IT'S POSSIBLE WE COULD GO BACK OVER 7 A BUSHEL SUCH INCREASES WOULD REPRESENT A SURGE OF 6 TO 11 FROM YESTERDAY'S SETTLING PRICE OF 6295 A BUSHEL ON THE CHICAGO BOARD OF TRADE'S ACTIVELY TRADED NOVEMBER SOYBEAN CONTRACT AND MANY ALSO EXPECT A SURGE IN THE PRICE OF CORN THE BOARD OF TRADE'S SECONDLARGEST FUTURES CONTRACT I THINK THE DECEMBER CORN CONTRACT COULD GET AS HIGH AS 268 MORE THAN 12 HIGHER THAN YESTERDAY'S CLOSING PRICE OF 2385 A BUSHEL SAYS BILL BIEDERMANN VICE PRESIDENT FOR RESEARCH AT ALLENDALE INC WITH A POTENTIAL UPSIDE OF 30 CENTS A BUSHEL THAT TRANSLATES TO A PROFIT OF 1500 ON A SINGLE FUTURES CONTRACT COMMODITIES SUCH AS GRAINS ARE SUBJECT TO SUDDEN VOLATILE PRICE SWINGS SO MOST ANALYSTS DON'T RECOMMEND THEM TO SMALL OR CASUAL INVESTORS YET FOR AGGRESSIVE INVESTORS THERE APPEARS TO BE AN OPPORTUNITY HERE MR BIEDERMANN SAYS THE GRAIN MARKET AT THE CBOT HAS BEEN UNDER SELLING PRESSURE SINCE LAST WEEK WHEN THE US AGRICULTURE DEPARTMENT RAISED ITS ESTIMATE OF SOYBEAN PRODUCTION UNEXPECTEDLY THE USDA ESTIMATED THIS YEAR'S SOYBEAN CROP AT 191 BILLION BUSHELS UP FROM 190 BILLION BUSHELS IN ITS AUGUST REPORT YET MANY ANALYSTS ARE SKEPTICAL OF THE 191 BILLIONBUSHEL FIGURE MAINLY BECAUSE THEY THINK THE USDA IS OVERESTIMATING SOYBEAN PRODUCTION IN AREAS SUCH AS ILLINOIS AND INDIANA WHICH WERE SPARED THE LATESPRING FLOODING THAT RAVAGED THE WESTERN CORN BELT THEY SAY THE DEPARTMENT MAY BE FORCED TO REDUCE THE FIGURE IN ITS NEXT REPORT TO BE RELEASED ON OCT 12 MOREOVER THE NATIONAL WEATHER SERVICE IN ITS WIDELY WATCHED 6TO10DAY AND 30DAY FORECASTS IS CALLING FOR CONTINUING RAIN ACROSS MOST OF THE CORN BELT SUCH RAIN COULD MUDDY FIELDS POTENTIALLY HAMPERING THE HARVEST AND CURTAILING PRODUCTION OF CORN AND SOYBEANS ANOTHER FACTOR FEEDING BULLISH SENTIMENT AT THE BOARD OF TRADE ARE LOW ESTIMATES OF GRAIN ENDING STOCKS OR THE INVENTORIES OF GRAIN THAT THE USDA EXPECTS TO BE ON HAND IN US WAREHOUSES AT THE END OF THE CURRENT CROP YEAR ON AUG 31 1994 LAST WEEK THE DEPARTMENT FORECAST ENDING STOCKS AT 215 MILLION BUSHELS OF SOYBEANS AND 13 BILLION BUSHELS OF CORN THESE FIGURES ARE WELL BELOW THE AVERAGE ENDING STOCKS OF 264 MILLION BUSHELS OF SOYBEANS AND 16 BILLION BUSHELS OF CORN OVER THE PAST FIVE YEARS THERE'S NOT MUCH OF A CUSHION WITH ENDING STOCKS THIS LOW SAYS DALE GUSTAFSON GRAIN ANALYST FOR SMITH BARNEY SHEARSON BECAUSE OF THESE LOW INVENTORIES THE MARKET WILL GET A LOT MORE BULLISH QUICKLY IF PRODUCTION WERE TO BE REDUCED IN THE NEXT USDA REPORT JOHN MCHONE VETERAN CBOT FLOOR TRADER FOR AG EDWARDS & SONS SEES POTENTIAL FOR A SHARP INCREASE IN THE PRICE OF BOARD OF TRADE FUTURES CONTRACTS ON SOYBEAN OIL ONE OF THE BYPRODUCTS OF CRUSHING SOYBEANS FOR INDUSTRIAL USE THE DECEMBER OIL CONTRACT IS NOW BETWEEN 23 TO 235 CENTS A POUND MR MCHONE SAYS IF WE GET LOWER SOYBEAN PRODUCTION THAN THE USDA PROJECTED THE PRICE COULD RUN UP ANOTHER FIVE CENTS BY THE END OF THE YEAR FOR A GAIN OF MORE THAN 20 HE SAYS EUROPEAN NATIONS AND SUCH COUNTRIES AS INDIA AND PAKISTAN ARE LARGE USERS OF SOYBEAN OIL AND INVENTORIES IN THOSE COUNTRIES ARE THOUGHT TO BE LOW IN FACT EUROPE'S GRAIN INVENTORIES ARE LOW ACROSS THE BOARD ANALYSTS SAY I THINK THE EUROPEANS HAVE ALLOWED THEIR INVENTORIES TO GET TO DANGEROUSLY LOW LEVELS AND WILL HAVE TO COME TO THE MARKET ONCE THEY'RE CONVINCED THE MARKET HAS HIT ITS SEPTEMBER LOWS MR GUSTAFSON SAYS YET TEMPERING ANY RALLY AS THE FALL PROGRESSES WILL BE EXPECTATIONS OF LARGE GRAIN CROPS IN SOUTH AMERICA AN INCREASINGLY STRONG COMPETITOR FOR GRAIN PURCHASES BY EUROPEAN AND ASIAN NATIONS AFTER HARVEST THE MARKET WILL FOCUS ON SOUTH AMERICA WHERE PLANTINGS OF SOYBEANS ARE ANTICIPATED TO BE UP 9 TO 12 THIS YEAR SAYS DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO WE SHOULD BE LOOKING AT RECORD PRODUCTION DOWN THERE ASSUMING NORMAL WEATHER IN OTHER COMMODITY MARKETS LIVESTOCK AND MEATS PRICES OF CATTLE FUTURES CONTRACTS FELL IN ANTICIPATION OF A MONTHLY SURVEY SCHEDULED FOR RELEASE TODAY BY THE AGRICULTURE DEPARTMENT THE SEVENSTATE FEEDLOT SURVEY IS EXPECTED TO SIGNAL A SWELLING CATTLE SUPPLY DAN VAUGHT A LIVESTOCK ANALYST AT AG EDWARDS & SONS ST LOUIS SAID HE EXPECTS THE DEPARTMENT TO REPORT THAT 9 MORE CATTLE WERE BEING FATTENED FOR SLAUGHTER IN FEEDLOTS ON SEPT 1 COMPARED WITH THE SAME 1992 DATE THE COMBINATION OF RELATIVELY CHEAP PRICES FOR GRAIN WHICH REPRESENT MOST OF THE CATTLE DIET AND STRONG BEEF EXPORTS ENCOURAGED FEEDLOT OPERATORS TO EXPAND THROUGH THE SUMMER THE GROWING SUPPLIES OF FATTENED CATTLE ARE EXPECTED TO DEPRESS CATTLE PRICES SIGNIFICANTLY BY WINTER HOWEVER IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE CATTLE CONTRACT FOR OCTOBER FELL 05 CENTS A POUND TO SETTLE AT 744 CENTS A POUND THE OCTOBER HOG CONTRACT ROSE 085 CENTS A POUND TO SETTLE AT 4972 CENTS A POUND HOG PRICES CLIMBED AMID SPECULATION THAT MEATPACKERS WILL BE AGGRESSIVE BUYERS OF FATTENED HOGS FOR SLAUGHTER SATURDAY ENERGY GASOLINE PRICES RALLIED ON NEWS THAT A GASOLINEPRODUCING UNIT OF A MAJOR GULF COAST REFINERY MIGHT BE SHUT FOR AT LEAST A WEEK TRADERS ATTRIBUTED THE SURGE IN THE PRICE OF GASOLINE TO THE SHUTDOWN OF A CATALYTIC CRACKING UNIT AT SHELL OIL CO'S LOUISIANA REFINERY THE UNIT HAS A CAPACITY OF 80000 BARRELS A DAY ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT A SHELL SPOKESMAN SAID THE UNIT IS EXPECTED TO BE OUT OF SERVICE UNTIL THE WEEKEND OF SEPT 25 THE RALLY IN GASOLINE FUTURES PRICES HELPED TO DRIVE HEATINGOIL PRICES LOWER AS TRADERS SOLD HEATING OIL AND BOUGHT GASOLINE CONTRACTS TO REALIZE QUICK PROFITS HOWEVER MOST TRADERS SAID THEY EXPECTED HEATINGOIL FUTURES PRICES TO RECOVER THE LOSSES INCURRED YESTERDAY BECAUSE OF EXPECTED SEASONAL DEMAND 9309170129 930917 CORRECTIONS & AMPLIFICATIONS COMPAQ COMPUTER CORP SAID INDUSTRY SHIPMENTS OF PERSONAL COMPUTERS IN NORTH AMERICA ARE EXPECTED TO BE RELATIVELY FLAT IN THE SECOND HALF OF 1993 YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY INDICATED THAT COMPAQ WAS REFERRING TO ITS OWN SHIPMENTS 9309170128 930917 LETTERS TO THE EDITOR IF YOU'RE NOT A LAWYER SHUT UP IF MY EXPERIENCE IS ANY GUIDE THE GROWING NUMBER OF INDIVIDUALS WHO REPRESENT THEMSELVES IN THE COURTS EACH YEAR ARE AT TIMES FOILED NOT BY IGNORANCE OF THE LAW AS YOU REPORTED ON YOUR AUG 17 PAGE ONE STORY THE LAWYERLESS AS IS WIDELY BELIEVED BUT BY THE BIAS OF MANY JUDGES AGAINST SOCALLED PRO SE LITIGANTS AFTER SHEDDING MY 175ANHOUR ATTORNEYS I DEFENDED MYSELF UNTIL LAST OCTOBER DURING A POSTDIVORCE LAWSUIT MY FORMER WIFE BROUGHT AGAINST ME IN NEW YORK STATE SUPREME COURT INCLUDING MY CROSSCLAIMS AND A RELATED ACTION I STARTED IN CIVIL COURT WE WRANGLED FOR THREE YEARS OVER MONEY AND MY SCHEDULE OF VISITS WITH OUR YOUNG SON AS WELL AS ORDERS OF PROTECTION IT'S NOT MY PURPOSE TO ARGUE THE CASE HERE BUT TO RECOUNT HOW AS SOON AS MOST OF THE JUDGES I FACED LEARNED THAT THE MAN BEHIND THE SUIT AND TIE WAS NOT A LAWYER THEY OFTEN PHYSICALLY TURNED AWAY IGNORED MY ARGUMENTS AND OPENLY FAVORED MY ADVERSARY IT WAS NO HELP THAT I CAME TO COURT ARMED WITH COUNSEL FROM AN ATTORNEY OR THAT I WAS NOT UNFAMILIAR WITH THE JUSTICE SYSTEM HAVING SERVED IN IT IN SEVERAL EXECUTIVE POSITIONS NONE OF THIS STOPPED ONE CIVIL COURT JUDGE FROM EXCORIATING ME HARSHLY FOR LEANING MY ELBOW ON THE EDGE OF HIS BENCH AND SHOUTING SHUT UP WHEN I APOLOGIZED MY CLAIM FARED AS WELL AS I DID THROUGHOUT THE MAIN LITIGATION NO QUESTION OF LAW OR PROCEDURE DID ME IN ON THE CONTRARY IT WAS I WHO RAISED THESE AGAINST MY LAWYEROPPONENT BUT DESPITE MY OBJECTIONS AT THREE HEARINGS THE PRESIDING JUSTICE ALLOWED HER TO SERVE ME LENGTHY MOTIONS IN THE COURTROOM JUST MINUTES BEFORE THEY WERE TO BE ARGUED CONTRARY TO THE THREEDAY NOTICE THE REGULATIONS REQUIRE WHEN SHE FINALLY ORDERED THAT I BE SERVED IN ADVANCE MY ADVERSARY OPENLY DEFIED HER WITHOUT A REPRIMAND AND AGAIN SERVED ME A CRITICAL 75PAGE MOTION IN THE COURTROOM I WAS ALLOWED 10 MINUTES TO READ AND RESPOND TO IT WHEN I OBJECTED SHE SCREAMED I DON'T CARE ABOUT YOUR MOTIONS I'M THE LAW HERE DESPITE WRITTEN REQUESTS I WAS ALWAYS DENIED A COURT REPORTER AND THUS A RECORD TO APPEAL WITH THE JUDGE ANGRILY ASSERTING I'LL TELL YOU WHEN YOU NEED A RECORD THESE ABUSES FOLLOWED BY SEVERAL MONTHS A CRUEL ORDER BY THE JUDGE SHARPLY CUTTING AND IMPOSING SUPERVISION ON MY FREQUENT VISITS WITH MY SON UNTIL FIRST SHE AND THEN MY OPPONENT RETURNED FROM VACATIONS AND TENDED TO OTHER PERSONAL MATTERS AT THE NEXT HEARING WITH NO NEW FACTS INTRODUCED SHE REINSTATED UNSUPERVISED VISITS ADDED TOGETHER HER ACTIONS LED ME TO BELIEVE THAT MORE THAN INJUSTICE WAS AT PLAY HERE AND ON A HUNCH THAT SHE HAD A CONFLICT OF INTEREST WITH MY ADVERSARY I ASKED THE JUDGE TO RESIGN SHE DID AND REVEALED THAT SHE HAD BEEN A GUEST FOR DINNER IN MY ADVERSARY'S HOME ONCE AND THAT WHILE SHE HEARD THE CASE THE TWO SERVED TOGETHER ON A COMMITTEE EXAMINING WOMEN'S ISSUES STILL SHE DENIED ANY CONFLICT MAINTAINING THAT WHEN I HAD ATTORNEYS SHE INFORMED THEM OF THESE ACTIVITIES THEY LATER DENIED THIS CLAIM AND THERE WAS NO OBJECTION THAT SHE NEVER PROVIDED THIS INFORMATION TO ME WHOSE INTERESTS WERE DIRECTLY AT STAKE DURING MORE THAN A YEAR THAT I WAS MY OWN ADVOCATE WAS NEVER MENTIONED AS A NONLAWYER I WAS A NONENTITY I FARED NO BETTER UNDER THE NEXT JUDGE DURING AN UNRECORDED MEETING IN HER CHAMBER SHE REFUSED TO REVIEW HER PREDECESSOR'S DECISIONS AND WHEN I TOLD HER I WAS WITHOUT AN ATTORNEY SHE QUIZZED CONTEMPTUOUSLY WHY ARE YOU DOING THIS DURING THE REST OF THE SESSION SHE DISCUSSED THE ISSUES WITH MY ADVERSARY ONLY THEY TALKED ABOUT ME IN THE THIRD PERSON AND SHE DECIDED A NUMBER OF POINTS WHICH BY LAW MUST BE ADDRESSED IN A COURTROOM SHE ALSO TAUNTED ME WITH THE REMARK THAT SHE DID NOT APPROVE OF MY SON'S REGULAR WEDNESDAY VISITS WITH ME ON SCHOOL NIGHTS A MATTER NOT EVEN UNDER CONSIDERATION AT THE TIME BUT WHICH MY OPPONENT RAISED LATER AS A TRADING POINT IN NEGOTIATIONS SENSING ANOTHER RAILROADING I REQUESTED A RECESS TO GET AN ATTORNEY REQUEST DENIED MY ADVERSARY CAPITALIZED ON THE JUDGE'S DISDAIN FOR MY SELFADVOCACY BY AGAIN SERVING ME VOLUMINOUS PAPERS IN THE COURTROOM WHEN THE ARGUMENTS WENT PUBLIC WHEN FINALLY I TRIED HER TACTICS MY PAPERS WERE DISMISSED FOR VIOLATING PROCEDURES BY THEN IT WAS CLEAR THAT ON MY OWN I COULD EXPECT NEITHER LAW NOR EQUITY AND I SETTLED 9309170126 930917 WHO'S NEWS KPMG KPMG AMSTERDAM THIS MAJOR ACCOUNTING AND PROFESSIONAL SERVICES CONCERN NAMED FIVE DIRECTORS AT ITS US PRACTICE KNOWN AS KPMG PEAT MARWICK THE NEW DIRECTORS FILL VACANCIES DUE TO RETIREMENTS AND APPOINTMENTS OF PREVIOUS BOARD MEMBERS TO THE FIRM'S MANAGEMENT COMMITTEE THEY ARE DAVID A DIETZLER 49 YEARS OLD JANE H JELENKO 45 MICHAEL E LAVIN 47 JOHN R MILLER 46 AND CHRISTINE T ST CLARE 43 THE FIRM'S BOARD REMAINS AT 21 MEMBERS 9309170125 930917 DETREX CORP WILL TAKE A CHARGE SOUTHFIELD MICH DETREX CORP SAID IT WILL TAKE AN ESTIMATED 44 MILLION PRETAX CHARGE AGAINST THIRDQUARTER EARNINGS RELATED TO THE PHASEOUT OF A CHEMICAL EQUIPMENT FACTORY DETREX A SPECIALTY CHEMICAL SUPPLIER SAID DETERIORATING GROSS MARGINS RESULTING FROM OPERATING INEFFICIENCIES ARE FORCING THE COMPANY TO CLOSE ITS BOWLING GREEN KY PLANT BY THE YEAR END IN THE 1992 THIRD QUARTER DETREX HAD A LOSS OF 406474 OR 26 CENTS A SHARE ON SALES OF 212 MILLION 9309170124 930917 KERRMCGEE TO REDEEM DEBT OKLAHOMA CITY KERRMCGEE CORP SAID IT WILL REDEEM ITS 150 MILLION PRINCIPAL AMOUNT OF 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2012 THE DEBENTURES WILL BE REDEEMED OCT 15 AT 1029 PLUS ACCRUED INTEREST KERRMCGEE IS AN ENERGY AND CHEMICAL COMPANY 9309170123 930917 HORIZON HEALTHCARE CREDIT LINE HORIZON HEALTHCARE CORP SAID IT HAS INCREASED ITS LINE OF BANK CREDIT TO 50 MILLION FROM 33 MILLION THE CREDIT LINE IS PROVIDED BY THE BOATMEN'S NATIONAL BANK OF ST LOUIS A UNIT OF BOATMEN'S BANCSHARES INC AND FIRST INTERSTATE BANK OF TEXAS NA A UNIT OF FIRST INTERSTATE BANCORP NET PROCEEDS WILL BE USED TO FINANCE FUTURE GROWTH AND TO PROVIDE FLEXIBILITY IN FUTURE FINANCING ALTERNATIVES THE COMPANY SAID HORIZON IN ALBUQUERQUE NM HAD ABOUT 8 MILLION LEFT ON ITS PREVIOUS 33 MILLION BANK CREDIT LINE A COMPANY OFFICIAL SAID LAST MONTH HORIZON AGREED TO ACQUIRE GREENERY REHABILITATION GROUP INC OF NEWTON MASS FOR 85 MILLION IN STOCK AND ASSUMED DEBT 9309170122 930917 GRUMMAN SELLS 4 AIRCRAFT BETHPAGE NY GRUMMAN CORP SAID A TAIWANESE GROUP OF GOVERNMENT AND PRIVATE BUSINESSES HAS AGREED TO PURCHASE FOUR ALLWEATHER HAWKEYE E2T AIRBORNE EARLYWARNING COMMANDANDCONTROL AIRCRAFT FOR 700 MILLION THE AEROSPACE CONCERN SAID THE AIRCRAFT ARE SCHEDULED TO BE DELIVERED IN 1994 THE E2T CAN MONITOR SIX MILLION CUBIC MILES OF AIR SPACE AND MORE THAN 150000 SQUARE MILES OF OCEAN SURFACE FOR AIRCRAFT MISSILES SHIPS AND FIXED TARGETS 9309170120 930917 NATIONAL TECHTEAM ACQUISITION DEARBORN MICH NATIONAL TECHTEAM INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD MICRO SYSTEMS GROUP IN EXCHANGE FOR STOCK THE TRANSACTION IS EXPECTED TO BE COMPLETED BY OCT 1 SUBJECT TO REGULATORY AGENCY AND SHAREHOLDER APPROVAL MICRO SYSTEMS PROVIDES COMPUTER SERVICES IN THE MIDWEST AND HAD 1992 SALES OF 34 MILLION NATIONAL TECHTEAM IS A COMPUTER TRAINING AND CONSULTANT COMPANY 9309170119 930917 BANC ONE UNIT SELLS NOTES COLUMBUS OHIO BANC ONE CORP SAID ITS BANK ONE ARIZONA UNIT SOLD 150 MILLION OF SUBORDINATED NOTES THROUGH AN UNDERWRITING GROUP LED BY CS FIRST BOSTON THE NONCALLABLE NOTES WHICH CARRY A 6 COUPON WILL MATURE SEPT BANC ONE SAID NET PROCEEDS WILL BE USED TO SUPPLEMENT BANK ONE ARIZONA'S CAPITAL POSITION AND TO PROVIDE FUNDING FOR EXISTING LOANS AND INVESTMENTS 9309170118 930917 FINANCING BUSINESS T ROWE PRICE ASSOCIATES INC T ROWE PRICE ASSOCIATES INC A BALTIMORE MUTUAL FUND ADVISORY COMPANY SAID IT ASKED SHAREHOLDERS TO APPROVE A 2FOR1 STOCK SPLIT AND AN INCREASE IN AUTHORIZED SHARES TO 48 MILLION FROM 25 MILLION SHAREHOLDERS WILL VOTE ON THE PROPOSAL NOV 10 THE COMPANY ALSO DECLARED A QUARTERLY DIVIDEND OF 21 CENTS A SHARE PAYABLE OCT 14 TO SHARES OF RECORD SEPT 30 T ROWE PRICE HAS ABOUT 152 MILLION SHARES OUTSTANDING 9309170117 930917 US STEEL IMPORTS FELL BY 49 DURING JULY WASHINGTON US STEEL IMPORTS DECREASED 49 IN JULY FROM JUNE BUT ROSE 219 FROM JULY 1992 JULY IMPORTS TOTALED 1694000 TONS COMPARED WITH 1781000 TONS IN JUNE AND 1390000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS JULY IMPORTS REPRESENTED 204 OF CONSUMPTION UP SLIGHTLY FROM 193 IN JUNE AND UP FROM 178 IN JULY 1992 STEEL IMPORTS FOR THE FIRST SEVEN MONTHS OF 1993 TOTALED 9881000 TONS DOWN 01 FROM 9889000 TONS A YEAR AGO IMPORT PENETRATION FOR 1993'S FIRST SEVEN MONTHS WAS 168 OF THE MARKET COMPARED WITH 178 A YEAR AGO US EXPORTS IN JULY TOTALED 325000 TONS DOWN 34 FROM 336000 TONS IN JUNE AND UP 94 FROM 297000 TONS A YEAR EARLIER YEARTODATE EXPORTS TOTALED 2446000 TONS DOWN 5 FROM 2576000 TONS IN THE 1992 PERIOD 9309170116 930917 KOMATSU TO CUT 1000 JOBS IN BID TO REVAMP FIRM SPECIAL TO THE WALL STREET JOURNAL TOKYO KOMATSU LTD A JAPANESE CONSTRUCTION EQUIPMENT MANUFACTURER IS LAUNCHING A REORGANIZATION PLAN INCLUDING JOB CUTS TO ENABLE THE COMPANY TO BETTER COPE WITH ECONOMIC SLUGGISHNESS AND THE RAPID APPRECIATION OF THE YEN KOMATSU SAID IT WILL ESTABLISH A MANAGEMENT SYSTEM THAT CAN SURVIVE THE WIDEST EXTREMES OF DECLINES IN DEMAND AND FLUCTUATIONS IN FOREIGN EXCHANGE THE COMPANY WILL SCALE DOWN ITS CORPORATE HEADQUARTERS AND REALIGN ITS WORK FORCE TO STRATEGIC OPERATIONS SPECIFICALLY IT WILL CUT THE WORK FORCE BY 1000 IN TWO YEARS AS OF MARCH 31 KOMATSU AND ITS SUBSIDIARIES HAD 14800 EMPLOYEES BUT ONLY EMPLOYEES AT THE PARENT COMPANY WILL BE AFFECTED BY THE PERSONNEL CUTBACKS THE PARENT HAD 9200 WORKERS AS OF MARCH 31 THE COMPANY WILL ACCOMPLISH THE CUTBACKS THROUGH ATTRITION CURTAILMENT OF HIRINGS AND TRANSFERS OF PARENT COMPANY PERSONNEL TO SUBSIDIARIES THE STEEP APPRECIATION OF THE YEN EATS INTO THE PROFITS OF MANY JAPANESE COMPANIES WITH OPERATIONS OUTSIDE OF JAPAN THE HIGHER YEN MAKES EXPORTS MORE EXPENSIVE IN OTHER CURRENCIES AND CUTS INTO THE VALUE OF COMPANIES' PROFITS WHEN REPATRIATED BACK INTO YEN THE COMPANY WILL ALSO INTRODUCE PRODUCTIVITY CHANGES BY STREAMLINING PRODUCTION OF ITS MACHINERY THE COMPANY SAID IT AIMS TO REDUCE MANUFACTURING LINES AND BETTER BALANCE DEMAND WITH PRODUCTION TO IMPROVE PRODUCTIVITY AND EARNINGS THE KAWASAKI PLANT WILL BE TRANSFORMED INTO A BASE FOR SALES AND ENGINEERING AND A NUMBER OF OTHER UNITS WILL BE MOVED TO KAWASAKI IN ADDITION TO ALTERING DOMESTIC FACILITIES THE COMPANY ANNOUNCED IT WILL EXPAND ITS PRODUCTION OF LARGE TRUCKS IN THE US AND ITS MEDIUMSIZE TRUCKS IN BRAZIL IT WILL ALSO INCREASE IMPORTED MATERIALS AND PARTS FROM BRAZIL SOUTH KOREA INDONESIA AND CHINA KOMATSU PLANS TO LAUNCH THE PROGRAM IN OCTOBER AND HOPES TO COMPLETE IT BY THE END OF THE NEXT TWO YEARS FOR THE YEAR ENDING NEXT MARCH 31 KOMATSU HAS FORECAST AN UNCONSOLIDATED PRETAX PROFIT OF 16 BILLION YEN 151 MILLION ON SALES OF 530 BILLION YEN THE RESULTS WOULD AMOUNT TO THE THIRD CONSECUTIVE YEARONYEAR DROP IN PROFIT AND SALES THE ESTIMATES ALSO ARE DOWN SHARPLY FROM INITIAL FORECASTS FOR THE CURRENT YEAR 9309170115 930917 AUTO MAKERS PLANNING OVERTIME TO GEAR UP FOR NEW MODEL YEAR DETROIT IN GEARING UP FOR THE NEW MODEL YEAR THE BIG THREE AUTO MAKERS ARE PLANNING OVERTIME AT BOTH US AND CANADIAN OPERATIONS THIS WEEK AND NEXT GENERAL MOTORS CORP SAID IT SCHEDULED OVERTIME THIS WEEK AND NEXT AT ITS THREE ASSEMBLY PLANTS IN OSHAWA ONTARIO AND AT SEVEN OF ITS US TRUCKS ASSEMBLY PLANTS AUTO ASSEMBLY PLANTS IN FAIRFAX KAN DORAVILLE GA AND LANSING MICH WILL WORK SATURDAY OVERTIME NEXT WEEK FORD MOTOR CO SAID IT SCHEDULED OVERTIME AT THREE US CAR FACTORIES AND EIGHT TRUCK LOCATIONS THIS WEEK CHRYSLER CORP SAID IT PLANS OVERTIME THIS WEEK AND NEXT AT SEVEN US AND THREE CANADIAN ASSEMBLY PLANTS TOGETHER THE US AUTO MAKERS SAID THEY PLAN TO BUILD 200447 CARS AND TRUCKS THIS WEEK UP 78 FROM THE 185913 BUILT A YEAR EARLIER 9309170114 930917 FINANCING BUSINESS NOVA SCOTIA POWER INC NOVA SCOTIA POWER INC A HALIFAX NOVA SCOTIA ELECTRIC UTILITY SAID IT FILED A PRELIMINARY PROSPECTUS WITH CANADIAN REGULATORS FOR THE SALE OF 150 MILLION CANADIAN DOLLARS US1144 MILLION OF 10YEAR DEBENTURES INTEREST WILL BE PAID SEMIANNUALLY AT AN ANNUAL RATE OF 77 THE ISSUE IS PRICED TO YIELD 778 PROCEEDS WILL BE USED TO REDUCE BANK DEBT A SYNDICATE LED BY WOOD GUNDY INC WILL PURCHASE THE ISSUE 9309170113 930917 PRICE WATERHOUSE SIGNS CONTRACTS TO UPGRADE CHINA'S CENTRAL BANK BEIJING THE US ACCOUNTING FIRM PRICE WATERHOUSE SIGNED TWO CONTRACTS VALUED AT 72 MILLION TO HELP CHINA'S CENTRAL BANK UPGRADE ITS ACCOUNTING SYSTEM THE CONTRACTS ARE FUNDED BY A WORLD BANKSUPPORTED PROGRAM CALLED CHINA FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECTS THE OFFICIAL CHINA DAILY NEWSPAPER SAID THE PRICE WATERHOUSE OFFICE IN BEIJING SAID THE TWO PROJECTS INVOLVE BRINGING ACCOUNTING METHODS AT THE PEOPLE'S BANK OF CHINA UP TO INTERNATIONAL STANDARDS AND HELPING THE CENTRAL BANK IMPROVE ITS SUPERVISION OVER THE COUNTRY'S NETWORK OF BANKS AND FINANCIAL INSTITUTIONS THE BANK USES RUSSIAN BOOKKEEPING METHODS FROM THE 1950S THE COMPANY SAID PRICE WATERHOUSE WILL HELP INTRODUCE A COMPUTER SYSTEM THAT WOULD MAKE IT EASIER FOR THE CENTRAL BANK TO COLLECT INFORMATION FROM REMOTE AREAS OF CHINA POOL DATA FROM THE NETWORK OF BANKS AND PERFORM OPERATIONS SUCH AS ANALYZING LOAN RISKS THE COMPANY SAID CHINA HAS UNDERGONE A BANKING CRISIS IN RECENT MONTHS WITH STATE BANKS DANGEROUSLY SHORT OF FUNDS DUE TO BAD LOANS AND FRAUD IN JULY THE PEOPLE'S BANK ANNOUNCED PLANS FOR BANKING REFORMS TO BRING ORDER TO CHINA'S CHAOTIC FINANCIAL SYSTEM 9309170112 930917 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK THE FOLLOWING EXECUTIVES WERE NAMED EXECUTIVE VICE PRESIDENTS AT THIS BANKING CONCERN MARIA BEECHEY 37 YEARS OLD MERCHANT BANKING RICHARD J CANTY 43 WHOLESALE MARKETING VIVIAN L EVERSOLE 43 GLOBAL SECURITIES SERVICES KATHYLYNN O'DONNELL GALBRAITH 37 GLOBAL CAPITAL MARKETS AND ROBERT S STRONG 44 GLOBAL WHOLESALE PORTFOLIO MANAGEMENT AND REAL ESTATE OTHERS NAMED EXECUTIVE VICE PRESIDENTS WERE IN NATIONAL CONSUMERPRODUCTS FRED B KOONS 49 CHAIRMAN OF THE CHASE MANHATTAN MORTGAGE UNIT JOHN A WARD III 47 DIRECTRESPONSE BANKING JOEL L EPSTEIN 47 REGIONAL BANKINGINDIVIDUALS AND WILLIAM H HOEFLING REGIONAL BANKINGUPSTATE IN ADDITION PETER J HOLZER 48 STRATEGIC PLANNING AND DEVELOPMENT WAS NAMED AN EXECUTIVE VICE PRESIDENT WITH RESPONSIBILITIES FOR THE OVERALL BANK CHASE CURRENTLY HAS 28 EXECUTIVE VICE PRESIDENTS UP FROM 18 9309170111 930917 CONSUMERS VS BUREAUCRATS BY CAIT MURPHY BOMBAY ON THE ROAD TO BOMBAY'S AIRPORT THERE IS A SIGN LITERALLY OF HOW INDIA'S BUREAUCRACY AND VESTED INTERESTS GO ABOUT ATTEMPTING TO CRIPPLE ECONOMIC REFORM AN AIRLINE BILLBOARD READS DELHI EVERY MORNING AND NITE HYDERABAD EVERY AFTERNOON FOLLOWED BY A PHONE NUMBER WHY IS THERE NO NAME ON THE BILLBOARD OR A TIME OF DEPARTURE BECAUSE IT'S ILLEGAL HERE'S WHY INDIA HAS TWO PUBLICSECTOR AIRLINES AIR INDIA FOR INTERNATIONAL ROUTES AND INDIAN AIRLINES IA FOR DOMESTIC FLIGHTS BOTH ARE RENOWNED FOR LATE ARRIVALS SHODDY SERVICE BROKEN SEATS AND THE THRILL OF DANGER IN 1989 THE GOVERNMENT ANNOUNCED AN OPENSKIES POLICY ALLOWING PRIVATE AIRLINES KNOWN IN INDIA AS AIR TAXIS TO OPERATE THE SKIES WEREN'T REALLY OPEN IA COULD VETO A ROUTING REQUEST AND THE AIR TAXIS WERE NOT ALLOWED TO CHARGE LOWER FARES OR TAKE OFF WITHIN ONE HOUR OF AN IA DEPARTURE DESPITE THE RESTRICTIONS WHEN THE AIR TAXIS GOT OFF THE GROUND THEY WERE A GREAT SUCCESS CIVIL AVIATION MINISTER MADHAVRAO SCINDIA LOVED 'EM AND KEPT GIVING THE AIR TAXIS MORE AND MORE ROOM TO MANUEVER FOR EXAMPLE HE LIFTED THE RULE THAT ALLOWED ENTRY ONLY TO BUSINESSMEN WHO COULD ARRANGE FOREIGN EXCHANGE FROM ABROAD WHICH HAD SHUT MANY INDIANS OUT OF THE BUSINESS THE RESULT HAS BEEN A TEXTBOOK EXAMPLE OF THE VIRTUES OF COMPETITION IA HAS BEEN FORCED TO IMPROVE ITS SERVICE AND AIR TRAFFIC HAS INCREASED IF THIS SOUNDS LIKE THE END OF THE STORY WELCOME TO INDIA GHULAM NABI AZAD THE NEW HEAD OF CIVIL AVIATION AND HIS COHORTS ARE A GOOD EXAMPLE OF HOW THE BUREAUCRACY BECOMES DRIVEN BY ITS OWN INTERESTS RATHER THAN THOSE OF THE PUBLIC IT IS SUPPOSED TO SERVE THIS APPROACH FORTUNATELY IS VERY MUCH AT ODDS WITH THAT OF MR AZAD'S SUPERIORS FINANCE MINISTER MANMOHAN SINGH NOTED IN JULY THAT SOME STEPS HAVE BEEN TAKEN TO INDUCT PRIVATESECTOR RESOURCES INTO THE AVIATION SECTOR THIS IS DESIRABLE AND NEEDS TO BE STRENGTHENED FURTHER IT IS SUCH TALK IN HIGH PLACES THAT MAY YET YIELD A HAPPY ENDING AN AMENDMENT TO THE 1950SERA AIR CORPORATION ACT THAT WOULD LIBERALIZE AND CODIFY THE RULES UNDER WHICH AIR TAXIS ARE ALLOWED TO OPERATE HAS BEEN CIRCULATED TO MEMBERS OF PARLIAMENT IT IS EXPECTED TO PASS WHEN IT COMES TO A VOTE WHICH COULD BE AS EARLY AS THE NEXT SESSION IN DECEMBER BUT CONSIDERING THE OPPOSITION FROM BOTH THE MINISTRY AND INFLUENTIAL MPS THIS COULD BE ANOTHER LATE ARRIVAL SEE RELATED ARTICLE THE INDIAN WAY OF CAPITALISM WSJ SEPT 17 1993 9309170110 930917 POLITICS & POLICY NEW WOMEN LAWMAKERS MURRAY AND MEEK SEEK CHANGE IN CONGRESS EACH IN HER OWN WAY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN PATTY MURRAY IS A SELFSTYLED MOM IN TENNIS SHOES FROM SUBURBAN SEATTLE REP CARRIE MEEK A FORMER TRACK STAR REPRESENTING MIAMI'S BLACK NEIGHBORHOODS IS BETTER DESCRIBED AS A GRANDMOTHER IN CLEATS ELECTED LAST FALL FROM OPPOSITE CORNERS OF THE NATION THE TWO WOMEN SYMBOLIZED REVOLT AT THE BALLOT BOX AS WOMEN AND MINORITIES WON UNPRECEDENTED POWER IN WASHINGTON NOW NEARLY A YEAR LATER THEY REPRESENT A SECOND MORE INCREMENTAL UPRISING AS EACH TRIES TO TRANSLATE HER POWER INTO REAL CHANGE IN CONGRESS THERE HAVE BEEN MOMENTS OF DISILLUSIONMENT AS WHEN THE GUILELESS SEN MURRAY LEARNED SHE HAD BEEN BAMBOOZLED INTO BACKING A SPENDING BILL THAT INCREASED MILITARY FUNDING AT THE EXPENSE OF DOMESTIC PROGRAMS AND THERE HAS BEEN ANGER REP MEEK HER SHOULDERS HEAVING WITH EMOTION HAD TO BE RESTRAINED DURING A BITTER JUNE DEBATE WHEN CONSERVATIVE REPUBLICAN REP HENRY HYDE OF ILLINOIS SUGGESTED THAT ABORTIONS WERE BEING FOISTED ON UNWITTING BLACKS AS A MEANS OF IMPROVING THE BREED YET AMID THESE SETBACKS THE MALEDOMINATED CAPITOL AND THE APPROPRIATIONS COMMITTEES ON WHICH THE TWO WOMEN SERVE WILL NEVER BE THE SAME AS A RULE THIS NEW CLASS OF DEMOCRATIC WOMEN HAS PROVEN MORE WILLING THAN MALE FRESHMEN TO TAKE RISKS TO ADVANCE PRESIDENT CLINTON'S ECONOMIC AGENDA LIKE ALL NEWCOMERS THESE WOMEN LAWMAKERS REPRESENT A WORK IN PROGRESS ALTHOUGH REP MEEK AND SEN MURRAY HAVE ALREADY LEFT THEIR MARK ON ISSUES RANGING FROM ABORTION RIGHTS TO MINORITY CONTRACTS MOREOVER BY THEIR VERY PRESENCE AND LANGUAGE THEY BRING A NEW PERSPECTIVE TO DEBATE WHO BUT MS MURRAY A FORMER PTA PRESIDENT COULD BETTER DISARM CONSERVATIVE CRITICS OF USING COMMUNITY DEVELOPMENT FUNDS TO BUILD PUBLIC SWIMMING POOLS WHO BUT MS MEEK COULD LECTURE HER FELLOW DEMOCRATS WITH FOLK WISDOM LEARNED AS A SHARECROPPER'S DAUGHTER IT'S A STRANGE FROG THAT WON'T PRAISE HIS OWN POND SHE TOLD THE PARTY CAUCUS BEFORE VOTES ON THE ADMINISTRATION'S BUDGET INSTEAD OF ALL YOU OUT THERE GOING YOUR SEPARATE WAYS YOU SHOULD ALL JUMP IN THE POND AND CROAK TOGETHER THE ONLY FRESHMAN DEMOCRAT NAMED TO THE HOUSE APPROPRIATIONS COMMITTEE REP MEEK A FORMER FLORIDA LEGISLATOR HAS QUITE SIMPLY TAKEN THE PLACE BY STORM HER RACE GENDER AND AGE 67 MAKE HER A TRIPLE THREAT SHE HAS EMERGED AS AN INDOMITABLE MATRIARCH UNYIELDING TO MEN AND SAVVY TO THEIR POLITICAL WILES SHE IS VERY ABLE AT SEEING THE WHOLE PICTURE SAYS DEMPSEY BARRON STATE SENATE PRESIDENT DURING MS MEEK'S YEARS IN TALLAHASSEE AND A VETERAN OF THE PORK CHOP GANG THE RURAL OLDBOY BLOC THAT LONG DOMINATED THE STATE LEGISLATURE SHE'S JUST MY KIND OF POLITICIAN SHE'S GOING TO BE HEARD FROM MS MEEK HAS DIVORCED AND OUTLIVED TWO HUSBANDS AND DELIGHTS IN GIVING CAPITOL DOORKEEPERS CORONARIES BY JUMPING OFF THE BACKROW RISERS ON THE HOUSE FLOOR MOST IMPORTANT SHE UNDERSTANDS POWER PARTICULARLY THE MINDSET OF AN AGED LARGELY SOUTHERN WHITE APPROPRIATIONS LEADERSHIP THAT FINDS ITSELF INCREASINGLY ISOLATED IN THE HOUSE IT'S LIKE THROWING A RABBIT IN THE BRIAR PATCH BECAUSE I UNDERSTAND THE WAY THEY THINK SHE SAYS I SEE MOSTLY WHITE MALES I SEE VERY FEW FEMALES BUT I SEE PEOPLE WHO HAVE REALLY WORKED HARD HERE IN CONGRESS TO GET WHERE THEY ARE AND NOW HAVE POWER AND I RESPECT THAT POWER WITH A CERTAIN POIGNANCY SHE IDENTIFIES WITH THE STEELY PATIENCE OF CHAIRMAN WILLIAM NATCHER THE 84YEAROLD KENTUCKIAN WHO ONLY TOOK OVER THE PANEL LAST WINTER BUT THERE IS A TOUGHNESS AS WELL WHEN DEMOCRATIC REP WG BILL HEFNER OF NORTH CAROLINA ONE OF THE COMMITTEE CARDINALS SUGGESTED WASHINGTON IS SPENDING TOO MUCH FOR RADIO MARTI BROADCASTS TO CUBA A POPULAR PROGRAM IN MIAMI MS MEEK SHOT BACK SCORNFULLY IN HIS OWN COUNTRY MUSIC IDIOM YOU AREN'T DEALING WITH A RADIO STATION THAT ONLY PLAYS ACHY BREAKY HEART' LAST WINTER WHEN THE DEMOCRATIC LEADERSHIP SEEMED BENT ON CURBING THE COMMITTEE'S STRENGTH MS MEEK PREACHED DEFIANCE AND DELIVERED PRECIOUS VOTES FROM THE BLACK CAUCUS I JUST GOT HERE SHE SAYS I CERTAINLY DON'T WANT THE STRENGTH DILUTED AFTER I FINALLY MADE IT AFTER 125 YEARS HER PERFORMANCE WON THE HEARTS OF THE COMMITTEE LEADERSHIP BUT SET HER APART FROM THE BROADER BUDGETCUTTING REFORM AGENDA ASSOCIATED WITH LAST YEAR'S ELECTION THIS IS ONE NEWCOMER WHO TAKES TO THE FLOOR TO PRAISE THE ARMY CORPS OF ENGINEERS AND TREEPLANTING PROGRAMS RIDICULED BY OTHERS LIKE MANY MINORITY LEGISLATORS WITH POOR CONSTITUENTS SHE BALKS AT GIVING UP POLITICAL ACTION COMMITTEE CONTRIBUTIONS AND AFTER LABORING TO STRENGTHEN MINORITY EMPLOYMENT IN THE ENERGY DEPARTMENT'S COSTLY SUPERCONDUCTING SUPER COLLIDER SHE WAS DISMAYED AS HER CLASSMATES HELPED KILL FUNDING FOR THE ENTIRE PROJECT SEN MURRAY 42 CUTS A QUIETER PATH BUT ONE NOT WITHOUT ITS OWN OBSTACLES GENTLEMEN LET'S GO VOTE SAYS APPROPRIATIONS CHAIRMAN ROBERT BYRD OF WEST VIRGINIA IGNORING HER PRESENCE A FEW FEET AWAY AT A COMMITTEE MEETING FROM HER SEAT AT THE END OF THE LONG APPROPRIATIONS TABLE MS MURRAY ADMITS TO A CERTAIN HESITANCY EVEN AWE AT HER POSITION THAT ROOM IS CLEARLY OVERWHELMING IT IS LIKE A CHURCH SHE SAYS YET IN THE NEXT BREATH SHE DARES TO DISSECT THE ENIGMATIC CHAIRMAN BYRD AS A TEDDY BEAR PERSON STILL STRUGGLING WITH A TOUGH CHILDHOOD SHE'S HAPPY NOT BEING ONE OF THE BOYS I RAN AS A WOMAN AS A MOM AS WHO I AM BECAUSE I WANTED TO BE ABLE TO BE WHO I AM SHE SAYS WOMEN CAN BE WOMEN AND BE VERY SUCCESSFUL LOWKEY DELIBERATIVENESS IS HER TRADEMARK AND A POSTURE WELLSUITED TO THE SENATE LIKE MS MEEK MS MURRAY CAN SEEM FLUSTERED STILL BY HER NEW POSITION YET WHEN OTHER WESTERN DEMOCRATS ABANDONED THE ADMINISTRATION THIS WEEK UNDER PRESSURE FROM RANCHING INTERESTS SHE AND HER FRIEND CALIFORNIA SEN BARBARA BOXER STOOD ALONE IN THE REGION AGAINST A MORATORIUM ON HIGHER GRAZING FEES WITHIN APPROPRIATIONS MS MURRAY WON HER SEAT AHEAD OF HER MORE SENIOR COLLEAGUE THE OFTEN IMPERIOUS CALIFORNIA SEN DIANNE FEINSTEIN AND OREGON MARK HATFIELD THE RANKING REPUBLICAN ON THE PANEL HAS EMBRACED MS MURRAY WITH A WARMTH RARELY SEEN IN HIS RELATIONS WITH HER WEALTHY REPUBLICAN COUNTERPART SEN SLADE GORTON OF WASHINGTON STATE THE HATFIELDMURRAY ALLIANCE WAS CRUCIAL IN SECURING FUNDS FOR CLINTON ADMINISTRATION INITIATIVES FOR THE TROUBLED PACIFIC NORTHWEST TIMBER INDUSTRY IT TAKES ONE INDIVIDUAL WHO CAN ABSOLUTELY DOG THE THING UNTIL IT IS DONE SHE SAYS WHILE PLEASED WITH HER SUCCESS IT ONLY PROVED WHAT SHE SEES AS THE NEEDLESS MYSTIFICATION OF WASHINGTON INCLUDING THE APPROPRIATIONS PROCESS LAWMAKERS SHE ARGUES ONLY ALIENATE VOTERS BY CREATING THE ILLUSION THAT GOVERNMENT IS TOO COMPLEX TO BE UNDERSTOOD IN EVERY ROLE I'VE EVER HELD WHETHER IT'S PRESIDENT OF THE PTA OR RUNNING A PRESCHOOL OR BEING IN THE STATE SENATE I KNEW THAT WHERE YOU COULD REALLY IMPACT POLICY IS IN THE COMMITTEE THAT DECIDES WHERE THE MONEY IS GOING TO GO MS MURRAY SAYS THE WAY TO MAKE THIS PROCESS WORK BETTER IS TO MAKE IT UNDERSTANDABLE IF YOU MAKE IT RELATE TO PEOPLE'S PERSONAL LIVES THEN THEY'LL START WANTING TO BE PART OF THE PROCESS 9309170109 930917 CREDIT MARKETS MONEY SUPPLY DATA DRIVE BOND PRICES LOWER AS YIELD OF 30YEAR TREASURY JUMPS TO 603 BY ABBY SCHULTZ AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER BOUNCING AROUND ALL DAY PRICES OF US TREASURYS ENDED LOWER WITH 30YEAR BONDS RECEIVING A SEVERE DRUBBING BECAUSE OF STRONGERTHANEXPECTED MONEY SUPPLY DATA THE LATE PLUNGE IN THE 30YEAR BOND WAS DRIVEN BY STRONGERTHANEXPECTED WEEKLY MONEY SUPPLY FIGURES RELEASED BY THE FEDERAL RESERVE LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M2AGGREGATE ROSE 127 BILLION IN THE WEEK ENDED SEPT 8 THAT PUTS M2 GROWTH RATE AT 14 COMPARED WITH THE FOURTH QUARTER BASE OF LAST YEAR WHICH IS JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 THE REASON YOU HAD SUCH A REACTION IS THAT IT TIED INTO FEARS OF FEDERAL RESERVE OFFICIALS HAVING AN OVERLY ACCOMMODATING MONETARY POLICY SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO BUT MR LIRO CREDITS THE MONEY SUPPLY GROWTH TO STEPPEDUP MORTGAGE LOAN REFINANCING WHICH HAS BEEN DRIVEN BY EVER LOWER INTEREST RATES AS RATES HEAD HIGHER MORTGAGE REFINANCING WILL SLOW AND MONEY SUPPLY GROWTH WILL BE SUBDUED HE SAYS I DON'T THINK THIS IS A TREND SAID MR LIRO WE'RE NOT GOING TO SEE THESE KINDS OF NUMBERS ON A SUSTAINED BASIS THE REPUBLIC OF ITALY'S 55 BILLION TWOPART GLOBAL BOND OFFERING WHICH WAS COMPLETED YESTERDAY MORNING WAS BLAMED FOR MUCH OF A FALL IN THE 30YEAR BOND PRICE EARLIER IN THE SESSION BEFORE THE MONEY SUPPLY DATA WERE RELEASED IN THE LATE AFTERNOON TRADERS SAID RETAIL INVESTORS WERE SWAPPING OUT OF THE BOND TO BUY THE HIGHERYIELDING ITALIAN NOTES THE 35 BILLION ISSUE OF 30YEAR BONDS WAS PRICED WITH A 6875 SEMIANNUAL COUPON AT A PRICE OF 98725 TO YIELD 6977 OR 080 PERCENTAGE POINT MORE THAN THE 30YEAR US TREASURY BOND'S YIELD AT THE TIME OF PRICING THE 2 BILLION ISSUE OF 10YEAR NOTES WAS PRICED WITH A 6 SEMIANNUAL COUPON AT A PRICE OF 99851 TO YIELD 602 OR 062 PERCENTAGE POINT MORE THAN THE 10YEAR US TREASURY NOTE'S YIELD GOLDMAN SACHS & CO AND SALOMON BROTHERS INC LED THE OFFERING ACCORDING TO TRADERS THE 30YEAR PORTION TRADED UP SLIGHTLY IN THE SECONDARY MARKET WHILE THE 10YEAR NOTES HELD STEADY YESTERDAY'S SESSION WAS A BIT QUIET DUE TO THE JEWISH NEW YEAR HOLIDAY BUT EVEN SO THE VOLATILITY OF THE SESSION WAS SOMEWHAT UNNERVING TRADERS SAY TONY CRESCENZI DIRECTOR OF FIXED INCOME AT MILLER TABAK HIRSCH & CO SAID INVESTORS ARE LIKELY TO STAY AWAY FROM THE MARKET UNTIL THEY ARE MORE CERTAIN OF ITS DIRECTION FOR HIS PART MR CRESCENZI BELIEVES CURRENT MARKET LEVELS SUGGEST A TOO PESSIMISTIC VIEW OF THE ECONOMY'S WEAKNESS INVESTORS OFTEN GREET NEWS OF ECONOMIC SLUGGISHNESS BECAUSE IT MAY MEAN LESS INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MR CRESCENZI CALLED FOR THE PRICE OF THE 30YEAR BOND TO HEAD LOWER I THINK WE ARE JUST IN THE EARLY STAGES OF A MOVE DOWN HE SAID SEVERAL ECONOMIC REPORTS RELEASED YESTERDAY WHILE NOT STRONGLY UPBEAT ON THE ECONOMY WERE NOT ALL THAT NEGATIVE EITHER THE FEDERAL RESERVE BOARD REPORTED THAT AUGUST INDUSTRIAL PRODUCTION ROSE 02 LED BY A SURGE IN PRODUCTION OF BUSINESS EQUIPMENT AND DURABLE GOODS MATERIALS MR CRESCENZI BELIEVES THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE SURVEY SCHEDULED FOR RELEASE TODAY COULD SURPRISE THE MARKET WITH AN UPBEAT REPORT MEANWHILE THE TREASURY SOLD 1533 BILLION OF ONEYEAR NOTES AT AN AVERAGE DISCOUNT RATE OF 327 FOR A COUPON EQUIVALENT YIELD OF 340 HERE ARE THE RESULTS 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 THE BILLS ARE DATED SEPT 23 AND MATURE SEPT 22 1993 THE REPUBLIC OF ITALY COMPLETED ITS 55 BILLION GLOBAL BOND OFFERING IN A MARKET THAT WAS OTHERWISE RELATIVELY QUIET THERE WAS ONLY 650 MILLION OF DEBT PRICED OUTSIDE OF ITALY'S DEAL 250 MILLION OF WHICH WAS AGENCY PAPER FLORIDA POWER & LIGHT CO PRICED TWO DEBT OFFERINGS EACH FOR 125 MILLION AND BANC ONE CORP'S BANC ONE ARIZONA NA UNIT PRICED 150 MILLION OF NOTES THE REPUBLIC OF ITALY'S TWOTRANCHE OFFERING WAS OVERSUBSCRIBED AND WELL DISTRIBUTED ACCORDING TO THE UNDERWRITERS ABOUT 40 TO 45 OF THE PAPER WAS PURCHASED BY US INVESTORS 40 TO 45 BY EUROPEAN INVESTORS AND 15 TO 20 BY ASIAN INVESTORS ACCORDING TO JON WINKELREID PARTNER AND HEAD OF SYNDICATE AT GOLDMAN SACHS & CO WHICH COLEAD MANAGED THE DEAL WITH SALOMON BROTHERS INC BOTH PARTS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THERE WAS ABOUT 45 BILLION TO 5 BILLION OF DEMAND FOR THE 35 BILLION 30YEAR TRANCHE AND 275 BILLION OF DEMAND FOR THE 2 BILLION 10YEAR PIECE SAID MR WINKELREID THERE WAS STRONG DEMAND FOR THE 30YEAR PORTION IN THE SECONDARY MARKET AS THE BONDS' PRICE ROSE ABOUT 022 POINT TO 9895 FOR A 696 YIELD COMPARED WITH 6977 AT THE PRICING ONE TRADER SAID THEY'RE THE MOST LIQUID THING OUT THERE NOTED CHRISTOPHER MERSEY A VICE PRESIDENT AND TRADER AT WERTHEIM SCHRODER & CO THE DIFFERENCE BETWEEN BID AND OFFER PRICES WAS JUST A PENNY THE 10YEAR PAPER ENDED THE DAY FLAT AFTER TRADING DOWN SLIGHTLY DURING THE SESSION TRADERS SAID THAT PORTION OF THE DEAL WAS NOT AS UNIQUE AS THE 30YEAR TRANCHE BECAUSE ITALY ALREADY HAS 10YEAR PAPER OUTSTANDING MUNICIPAL BONDS WERE NARROWLY MIXED AT THE END OF YESTERDAY'S UNINSPIRED DEALINGS WITH A NUMBER OF TRADERS OUT FOR THE ROSH HASHANA HOLIDAY AND TREASURYS MOVING AIMLESSLY THERE WAS NOTHING BUT TRENDLESS TRADING IN THE MUNI MARKET THE NEW JERSEY HOUSING & MORTGAGE FINANCE AGENCY'S 520 OF 2016 BONDS CLOSED 1/4 POINT LOWER AT 98 3/898 3/4 YIELDING 529 IN TRADING OF NEW YORK ISSUES THE STATE POWER AUTHORITY'S 525 OF 2018 GENERALPURPOSE REFUNDING BONDS FINISHED UNCHANGED AT 99 7/8100 1/8 YIELDING 524 AS FOR THE PRIMARY SECTOR NO LARGE ISSUES WERE PRICED YESTERDAY BUT NEXT WEEK'S PRICING CALENDAR IS ALREADY LOOKING PRETTY HEAVY ISSUERS EXPECTED TO BRING BIG OFFERINGS TO THE MARKET INCLUDE TEXAS AND THE NEW YORK STATE DORMITORY AUTHORITY MORTGAGE SECURITIES OUTPERFORMED TREASURYS HANDILY YESTERDAY THOUGH MOST OF THE BUYING SEEN WAS BY DEALERS RATHER THAN INVESTORS OUTSIDE WALL STREET LATE IN TRADING THE 6 COUPONS FOR OCTOBER DELIVERY WERE ALL UP 10/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 FOR EXAMPLE TRADED AT 99 16/32 FOR A YIELD OF 609 THAT RATE IS 73 BASIS POINTS ABOVE THE YIELD ON THE TREASURY 10YEAR NOTE WHICH HAS A COMPARABLE MATURITY TO THE GINNIE MAE 6 COUPON AS THE TREASURY MARKET SPENT MOST OF THE DAY SEESAWING AROUND LOWER PRICE LEVELS SOME PLAYERS DECIDED THERE WAS VALUE IN THE MORTGAGE MARKET AGAIN RISING TREASURY RATES SERVE TO STEM THE FEAR OF PREPAYMENTS OR THE EARLY CALL OF MORTGAGE SECURITIES DUE TO HOMELOAN REFINANCING AMONG PRICES OF OTHER CURRENT COUPONS FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 TRADED AT 98 29/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 CHANGED HANDS AT 98 26/32 9309170108 930917 WHO'S NEWS SHIVA CORP SHIVA CORP BURLINGTON MASS FRANK INGARI 44 FORMER VICE PRESIDENT OF MARKETING AT LOTUS DEVELOPMENT CORP WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CLOSELY HELD REMOTE COMMUNICATIONS COMPANY 9309170107 930917 WHO'S NEWS EQUITABLE COS EQUITABLE COS NEW YORK WYNDHAM ROBERTSON 55 YEARS OLD WAS ELECTED A DIRECTOR OF THIS FINANCIAL SERVICES AND INSURANCE COMPANY INCREASING THE BOARD TO 18 SHE IS VICE PRESIDENT FOR COMMUNICATIONS FOR THE 16CAMPUS UNIVERSITY OF NORTH CAROLINA ALSO KEVIN R BYRNE 37 WAS NAMED TREASURER AT EQUITABLE AND ITS UNIT EQUITABLE LIFE ASSURANCE SOCIETY OF THE US HE HAD BEEN ASSISTANT TREASURER AT THE PARENT AND DEPUTY TREASURER OF EQUITABLE LIFE JERRY M DE ST PAER CHIEF FINANCIAL OFFICER HAD BEEN ACTING TREASURER FOR BOTH COMPANIES 9309170106 930917 WHO'S NEWS SEGA OF AMERICA INC SEGA OF AMERICA INC NEW YORK MICHAEL SHORROCK 38 YEARS OLD WAS NAMED PRESIDENT OF PROGRAMMING OF THE SEGA CHANNEL A NEW JOINT VENTURE AMONG SEGA TELECOMMUNICATIONS INC AND TIME WARNER ENTERTAINMENT LIMITED PARTNERSHIP A UNIT OF TIME WARNER INC IN NEW YORK THE SEGA CHANNEL WILL BEGIN DELIVERING VIDEO GAMES VIA NATIONAL CABLE SYSTEMS NEXT SPRING MR SHORROCK WAS FORMERLY PRESIDENT OF T&E SOFT OF AMERICA INC A US UNIT OF THE NAGOYA JAPANBASED T&E SOFT LTD TELECOMMUNICATIONS IS BASED IN ENGLEWOOD COLO SEGA OF AMERICA IS THE US UNIT OF SEGA ENTERPRISES LTD A TOKYOBASED PRODUCER AND MAKER OF VIDEO SOFTWARE 9309170105 930917 WHO'S NEWS TRITON ENERGY CORP TRITON ENERGY CORP DALLAS MICHAEL E MCMAHON AND J OTIS WINTERS WERE APPOINTED DIRECTORS OF THIS INTERNATIONAL OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR MCMAHON 46 YEARS OLD IS A PARTNER WITH AENEAS GROUP INC A SUBSIDIARY OF HARVARD MANAGEMENT INC THE PRIVATE INVESTMENT COMPANY THAT MANAGES HARVARD UNIVERSITY'S ENDOWMENT MR WINTERS 60 IS CHAIRMAN OF PATE WINTERS & STONE INC A MANAGEMENT CONSULTING FIRM THEY FILL THE VACANCIES CREATED BY THE RETIREMENTS EARLIER THIS YEAR OF TOM STEELE AND JAKE GOODSON 9309170104 930917 BUSINESS BRIEF S&L PROFITS CLIMBED 23 IN 2ND QUARTER FROM A YEAR EARLIER WASHINGTON SAVINGSANDLOAN ASSOCIATIONS CONTINUED THEIR FINANCIAL RECOVERY IN THE SECOND QUARTER AS EARNINGS ROSE 23 FROM A YEAR EARLIER TO 128 BILLION THE OFFICE OF THRIFT SUPERVISION SAID IT WAS THE 10TH STRAIGHT PROFITABLE QUARTER FOR THRIFTS AS THE NUMBER OF PROBLEM THRIFTS FELL 42 FROM A YEAR EARLIER TO 153 IN THE SECOND QUARTER THE LEVEL OF TROUBLED ASSETS FELL 31 TO 208 BILLION THE PROFITS OF THE THRIFT INDUSTRY CONTINUED TO REFLECT THE FAVORABLE INTERESTRATE SPREADS BETWEEN THE RATES EARNED ON ASSETS AND RATES PAID ON DEPOSITS AND BORROWINGS AND IMPROVEMENT IN ASSET QUALITY SAID JONATHAN FIECHTER ACTING DIRECTOR OF THE OTS THE SECONDQUARTER INTERESTRATE SPREAD FOR THRIFTS WAS 305 PERCENTAGE POINTS AN INCREASE FROM 302 POINTS IN THE FIRST QUARTER MR FIECHTER SAID THE WIDENING SPREAD CAME AS A SURPRISE TO OTS OFFICIALS WHO BELIEVED IT HAD PEAKED IN THE FIRST QUARTER SAID MR FIECHTER WHO ADDED THAT IT IS UNLIKELY THE SPREAD CAN CONTINUE TO WIDEN WHILE SECONDQUARTER THRIFT INDUSTRY PROFITS WERE UP FROM A YEAR EARLIER THEY DECLINED FROM PROFITS OF 181 BILLION IN THE FIRST QUARTER MR FIECHTER ATTRIBUTED A SIGNIFICANT PORTION OF THAT DECLINE TO AN INCREASE IN LOSS PROVISIONING BY THRIFTS IN CALIFORNIA WHERE WEAKNESS IN THE INDUSTRY PERSISTS OF THE 153 PROBLEM THRIFTS ABOUT A DOZEN ARE IN DANGER OF FAILING IF THEY AREN'T ACQUIRED OR RECEIVE CAPITALIZATION MR FIECHTER SAID HE PREDICTED A CONTINUED DECLINE IN THE NUMBER OF PROBLEM THRIFTS AS LONG AS WE DON'T SEE A RUNUP IN INTEREST RATES 9309170103 930917 BUSINESS BRIEF NOMURA SECURITIES CO HOLDER'S DEMAND IS REJECTED IN CLIENT COMPENSATION CASE A TOKYO COURT REJECTED A SHAREHOLDER'S DEMAND THAT NOMURA SECURITIES CO EXECUTIVES REPAY THE COMPANY FOR A HUGE LOSSCOMPENSATION MADE TO A FAVORED CLIENT IN 1990 IN 1991 NOMURA AND OTHER BROKERAGE FIRMS WERE FOUND TO HAVE GIVEN TOP CLIENTS A TOTAL OF ABOUT 200 BILLION YEN 19 MILLION TO COVER STOCK TRADING LOSSES FROM 1988 THE COMPENSATION AT THAT TIME WASN'T ILLEGAL BUT VIOLATED A FINANCE MINISTRY DIRECTIVE MEANT TO DISCOURAGE SUCH PRACTICES THE COMPENSATION ALSO ANGERED MANY SMALL INVESTORS WHO WEREN'T COMPENSATED FOR THEIR OWN LOSSES IN THE RULING PRESIDING JUDGE YOSHIHIRO KATAYAMA SAID THE LOSSCOMPENSATION WAS A SOCIALLY CONDEMNABLE ACT BECAUSE IT DAMAGED PUBLIC TRUST IN THE SECURITIES MARKET BUT HE RULED THE DEFENDANTS' DECISION TO COMPENSATE THEIR TOP CLIENTS WAS WITHIN THEIR DISCRETION AS MANAGERS AND THEY WERE THUS NOT ORDERED TO REPAY THE COMPANY 9309170102 930917 WHO'S NEWS DOLE PICKS TOWNSEND FOR 2 HIGH POSITIONS SPLITS MANAGEMENT WESTLAKE VILLAGE CALIF ERNEST W TOWNSEND 47 YEARS OLD HAS BEEN NAMED AN EXECUTIVE VICE PRESIDENT AND A MEMBER OF THE OFFICE OF THE CHAIRMAN OF DOLE FOOD CO THE COMPANY SAID DAVID H MURDOCK THE BILLIONAIRE INVESTOR WHO OWNS A 23 STAKE IN THE COMPANY IS CHAIRMAN OF DOLE AS PART OF WHAT AMOUNTS TO A MANAGEMENT SHAKEUP THE COMPANY SPLIT SENIOR MANAGEMENT INTO TWO LINES BOTH REPORTING DIRECTLY TO MR MURDOCK DAVID A DELORENZO 47 ASSUMES THE POSITION OF PRESIDENT DOLE FOOD COINTERNATIONAL AND MR TOWNSEND BECOMES PRESIDENT DOLE FOOD CONORTH AMERICA BOTH NEWLY CREATED POSTS MR DELORENZO TO WHOM THE HEADS OF DOLE'S EUROPE ASIA AND LATIN AMERICA DIVISIONS WILL CONTINUE TO REPORT HAD BEEN PRESIDENT OF DOLE FOOD CO A POSITION THAT IS ELIMINATED UNDER THE REORGANIZATION MR DELORENZO REMAINS AN EXECUTIVE VICE PRESIDENT OF THE COMPANY AND A MEMBER OF THE OFFICE OF THE CHAIRMAN MR TOWNSEND WHO SINCE 1992 HAD BEEN PRESIDENT OF DOLE'S FRESH FRUIT AND VEGETABLE UNIT WILL NOW BE RESPONSIBLE FOR ALL DOLE OPERATIONS SALES AND MARKETING ACTIVITIES IN NORTH AMERICA FUNCTIONS THAT HAD PREVIOUSLY REPORTED TO MR DELORENZO WHO HAS WORKED AT DOLE FOR 23 YEARS DOLE WHICH HAS INTERESTS IN FOOD PRODUCTION REAL ESTATE DEVELOPMENT AND RESORTS SAID THE CHANGES WOULD GIVE THE COMPANY A MORE EFFICIENT MANAGEMENT STRUCTURE TO BETTER FOCUS ON INDIVIDUAL MARKETS AND DOLE'S CUSTOMERS 9309170101 930917 MARKETING & MEDIA CABLEVISION TO BUY AMC CHANNEL STAKE FROM LIBERTY MEDIA WOODBURY NY CABLEVISION SYSTEMS CORP SAID IT WILL BUY LIBERTY MEDIA CORP'S 50 STAKE IN AMERICAN MOVIE CLASSICS THE MOVIE CLASSICS CABLE CHANNEL FOR ABOUT 170 MILLION LIBERTY PROMPTED THE TRANSACTION BY OFFERING 170 MILLION FOR THE OTHER HALF OF THE CABLE CHANNEL SHARED EQUALLY BETWEEN CABLEVISION AND GENERAL ELECTRIC CO'S NATIONAL BROADCASTING CO LIBERTY'S ACTION TRIGGERED A BUY/SELL CLAUSE WHICH FORCED CABLEVISION TO EITHER MATCH LIBERTY'S OFFER OR SELL ITS OWN STAKE WITH 46 MILLION SUBSCRIBERS FASTGROWING AMC IS CABLEVISION'S CROWN JEWEL A COMPANY SPOKESWOMAN SAID THE COMPANY HOPES TO TARGET MANY AMC SUBSCRIBERS WITH A NEW CABLE CHANNEL CALLED ROMANCE CLASSICS WHICH IT PLANS TO LAUNCH IN EARLY 1994 CABLEVISION THROUGH ITS RAINBOW PROGRAMMING HOLDINGS INC UNIT MANAGES SEVERAL NETWORKS INCLUDING BRAVO AND PRIME SPORTSCHANNEL CABLEVISION ALSO PLANS TO NEGOTIATE WITH NBC AS TO WHETHER THE BROADCAST NETWORK WANTS TO INCREASE ITS 25 EQUITY POSITION IN AMC OR SELL ITS STAKE THE ACQUISITION OF LIBERTY'S STAKE IN AMC IS EXPECTED TO CLOSE DEC 1 DENVERBASED LIBERTY OWNS A VARIETY OF CABLE PROGRAMMING INCLUDING STAKES IN QVC NETWORK INC BLACK ENTERTAINMENT NETWORK AND COURT TV 9309170100 930917 FIRST WESTERN CHANGES NAME SCOTTSDALE ARIZ EFFECTIVE SEPT 20 FIRST WESTERN CORP WILL CHANGE ITS NAME TO EXPRESS AMERICA HOLDINGS CORP AND ITS TRADING SYMBOL TO EXAM FROM FWCO FIRST WESTERN IS A MORTGAGE BANKING AND SERVICING COMPANY 9309170099 930917 WALMART CANCELS STORE IN MASSACHUSETTS TOWN WALMART STORES INC SAID IT CANCELED PLANS TO BUILD A STORE IN WESTFORD MASS AFTER LOCAL RESIDENTS MOUNTED AN INTENSE CAMPAIGN TO STOP IT THE WESTFORD FIGHT WHICH INCLUDED A PETITION SIGNED BY 5000 RESIDENTS WAS DESCRIBED IN A WALL STREET JOURNAL ARTICLE YESTERDAY DON SHINKLE A WALMART SPOKESMAN SAID THERE WERE A NUMBER OF REASONS FOR THE COMPANY'S WITHDRAWAL OF ITS PLANS HOWEVER THE ORGANIZED OPPOSITION BY WHAT WE FEEL IS A SMALL BUT OBVIOUSLY VOCAL GROUP OF INDIVIDUALS CLEARLY WAS ONE FACTOR IN OUR DECISION HE SAID MR SHINKLE ADDED THAT WALMART STILL IS INTERESTED IN WESTFORD'S GEOGRAPHIC MARKET AND MAY SEARCH FOR AN ALTERNATIVE SITE EMILY TELLER A SPOKESWOMAN FOR THE OPPOSITION GROUP IN WESTFORD SAID WALMART'S DECISION WAS A VICTORY FOR SMALL TOWNS THEY FINALLY LISTENED I'M ECSTATIC 9309170098 930917 ECONOMY INDUSTRIAL PRODUCTION ROSE IN AUGUST FOLLOWING INCREASES IN JULY AND JUNE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR MAY BE GETTING A LITTLE BIT STRONGER A NEW GOVERNMENT REPORT SUGGESTS OUTPUT AT THE NATION'S FACTORIES MINES AND UTILITIES ROSE 02 IN AUGUST THE FEDERAL RESERVE SAID THE INCREASE COMES ON TOP OF A 04 RISE IN JULY AND A REVISED GAIN OF 02 IN JUNE ANALYSTS WERE ENCOURAGED BY THE INDUSTRIAL PRODUCTION REPORT WHICH SHOWED SHARP RISES IN THE OUTPUT OF BUSINESS EQUIPMENT AND DURABLE GOODS INVESTMENT IN CAPITAL EQUIPMENT HAS BEEN THE ONE CONSISTENT BRIGHT SPOT OF THIS SLOW ECONOMIC RECOVERY THE SUMMER WAS PERHAPS NOT AS BAD FOR MANUFACTURING AS WE THOUGHT SAID THOMAS RUNIEWICZ INDUSTRIAL ANALYST FOR WEFA GROUP IN SUBURBAN PHILADELPHIA OTHER REPORTS ISSUED YESTERDAY SHOWED THAT THE NATION'S TRADE DEFICIT NARROWED SLIGHTLY IN JULY AND THAT CLAIMS FOR UNEMPLOYMENT BENEFITS WERE LITTLE CHANGED LAST WEEK ECONOMISTS ARE STILL WARY ABOUT THE OVERALL STRENGTH OF THE MANUFACTURING SECTOR WHICH HAS BEEN HURT BY SAGGING EXPORTS TO EUROPE AND JAPAN AND CONTINUED CUTBACKS IN THE DEFENSE AND AIRCRAFT INDUSTRIES PRODUCTION OF DEFENSE AND SPACE EQUIPMENT IN AUGUST DROPPED 09 THE 07 JUMP IN THE PRODUCTION OF BUSINESS EQUIPMENT IS PARTLY ATTRIBUTABLE TO LOW INTEREST RATES WHICH HAVE MADE IT LESS EXPENSIVE TO BUY CAPITAL EQUIPMENT OUTPUT OF CONSTRUCTION SUPPLIES WAS ALSO UP IN AUGUST WHILE PRODUCTION OF CONSUMER GOODS DROPPED THERE WAS A 1 DECLINE IN MINING OUTPUT WHICH THE FED ATTRIBUTED TO A CONTINUING STRIKE IN THE COAL INDUSTRY OVERALL INDUSTRY OPERATED AT 818 OF CAPACITY IN AUGUST THE SAME AS IN JULY ANALYSTS WERE LEERY ABOUT HOW MUCH RECENT PICKUPS IN PRODUCTION WOULD MEAN FOR EMPLOYMENT THAT'S BECAUSE MANUFACTURERS HAVE BEEN ADJUSTING TO HIGHER DEMAND BY WORKING EXISTING EMPLOYEES LONGER AND BY INCREASING EFFICIENCY ALTHOUGH THE TRADE DEFICIT IMPROVED SLIGHTLY IN JULY TO 1034 BILLION FROM 1206 BILLION IN JUNE ACCORDING TO THE COMMERCE DEPARTMENT ANALYSTS SAID THE TRADE GAP WILL HURT ECONOMIC GROWTH IN THE THIRD QUARTER THAT'S BECAUSE WEAK ECONOMIES OVERSEAS ARE EXPECTED TO CRIMP EXPORT GROWTH WHILE IMPORTS CONTINUE TO INCREASE AS THE US ECONOMY EXPANDS THE DEFICIT WILL BE A SMALL DRAG ON THE ECONOMY AT LEAST UNTIL NEXT YEAR SAID THEODORE TUNG ECONOMIST FOR NATIONAL CITY CORP IN CLEVELAND JULY'S 15 DECREASE IN EXPORTS TO 2708 BILLION REFLECTS DROPS IN AIRCRAFT AND CARS THE 46 DROP IN IMPORTS TO 4742 BILLION WAS DUE TO DECLINES MAINLY IN CARS INDUSTRIAL SUPPLIES AND CONSUMER GOODS YESTERDAY'S REPORT FOUND THAT EXPORTS TO MAJOR US TRADING PARTNERS FELL WHILE IMPORTS ESPECIALLY AIRCRAFT DROPPED AS WELL AS USUAL JAPAN HAD THE LARGEST TRADE IMBALANCE WITH THE US FOLLOWED BY CHINA IN ADDITION THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE 2000 IN THE WEEK ENDED SEPT 11 TO 324000 THE FOURWEEK MOVING AVERAGE OF CLAIMS CONSIDERED A BETTER MARKER OF LABOR MARKET CONDITIONS WAS UNCHANGED AT 325500 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN AUGUST THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR AUGUST STOOD AT 1111 OF THE 1987 AVERAGE 9309170097 930917 CAPITAL CONTROLS ARE INEFFECTIVE EC OFFICIAL SAYS ECONOMICS COMMISSIONER FEARS SOME INVESTMENT MAY BE DRIVEN AWAY BY CHARLES GOLDSMITH AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY'S ECONOMICS COMMISSIONER HENNING CHRISTOPHERSEN SAID ANY REINSTATEMENT OF CAPITAL CONTROLS WOULD BE INEFFECTIVE IN THWARTING CURRENCY SPECULATION AND COULD DRIVE INVESTMENT AWAY FROM THE EC POLITELY BUT SHARPLY DISTANCING HIMSELF FROM SUGGESTIONS MADE A DAY EARLIER BY THE COMMISSION PRESIDENT JACQUES DELORS MR CHRISTOPHERSEN SAID I DON'T THINK IT WOULD BE VERY EFFECTIVE BECAUSE IT RISKS THAT CAPITAL WOULD STAY AWAY IF I WAS AN AMERICAN INVESTOR WHY SHOULD I BUY EUROPEAN BONDS IF I WASN'T ABLE TO SELL THEM AGAIN ON A SEPARATE MATTER BOTH MR CHRISTOPHERSEN AND THE OUTGOING PRESIDENT OF GERMANY'S CENTRAL BANK HELMUT SCHLESINGER DISMISSED SUGGESTIONS COMING FROM THE EUROPEAN PARLIAMENT OF A DOUBLE ANCHOR SYSTEM FOR THE EC'S EXCHANGE RATE MECHANISM THAT WOULD TIE THE GERMAN MARK TO A REVISED FORM OF THE EUROPEAN CURRENCY UNIT IN AN ADDRESS EARLIER THIS WEEK TO THE EUROPEAN COMMUNITY PARLIAMENT BASED IN STRASBOURG FRANCE MR DELORS CALLED FOR STUDIES ON CONTROLLING CURRENCY MOVEMENTS TO PREVENT THE TYPE OF CHAOS THAT LED TO LAST MONTH'S EUROPEAN EXCHANGE RATE MECHANISM BREAKDOWN BUT MR CHRISTOPHERSEN SAID HE WANTED LITTLE PART IN IT OF COURSE YOU CAN DISCUSS THAT INTELLECTUALLY MR CHRISTOPHERSEN TOLD JOURNALISTS BUT I DON'T BELIEVE IN THE IDEA I DON'T BELIEVE IT WOULD BE SUCCESSFUL ASKED ABOUT SUGGESTIONS FROM SOME EC QUARTERS THAT A TAX ON BUYING AND SELLING CURRENCIES MIGHT DISCOURAGE AGGRESSIVE SPECULATION THE ECONOMICS COMMISSIONER SAID SUCH A SCHEME MIGHT WORK ONLY IF THE US JAPAN AND OTHER COUNTRIES WITH LARGE FOREIGN EXCHANGE MARKETS ALSO INSTITUTED SUCH A MEASURE OTHERWISE HE SAID EUROPEAN TRADING CENTERS WOULD LOSE BUSINESS TO RIVAL CITIES THE ONLY WAY TO PREVENT SPECULATION IS A COMMON CURRENCY AND A COMMON CENTRAL BANK SAID MR CHRISTOPHERSEN MAKING IT CLEAR THAT HE DIDN'T FEEL A DUAL ANCHOR SYSTEM WAS THE ANSWER TO THE COMMUNITY'S CURRENCY GRID PROBLEMS TECHNICALLY COMPLICATED SOLUTIONS DON'T NECESSARILY CREATE TRUST OR CONFIDENCE HE SAID OF THE PLAN UNDER REVIEW BY THE EUROPEAN PARLIAMENT'S MONETARY AFFAIRS COMMITTEE SOME OTHER COMMISSION OFFICIALS WERE LESS NEGATIVE ABOUT SUCH A SCHEME SAYING IT COULD HELP FORGE AN EC MONETARY POLICY BASED ON COMMUNITYWIDE RATHER THAN NATIONAL CONCERNS BUT THEY ADMITTED THOSE PLANS WOULDN'T HELP SOLVE THE PROBLEM OF WIDELY CONVERGING ECONOMIES THE PLAN UNDER DISCUSSION IN THE EUROPEAN PARLIAMENT WOULD FIX THE MARK RATE AGAINST A HARD ECU TO ACT AS A NEW LINCHPIN FOR THE EUROPEAN CURRENCY GRID THE EUROPEAN MONETARY INSTITUTE TO BE FORMED NEXT YEAR TO COORDINATE PROGRESS IN THE SECOND STAGE TOWARD EUROPEAN MONETARY UNION WOULD ASSUME THE BROADER FUNCTION OF ISSUING THE ECU MADE UP OF A BASKET OF EMS CURRENCIES UNDER A WEIGHTED SYSTEM SUCH A PLAN HOLDS SOME APPEAL FOR COUNTRIES WITH WEAKER CURRENCIES BECAUSE IT OFFERS MORE SAY IN EMS POLICIES WHILE IMPROVING CHANCES OF PARTICIPATION IN A FUTURE MONETARY UNION BUT THE BUNDESBANK WHICH WOULD BE EXPECTED TO SHARE RESPONSIBILITIES WITH THE MONETARY INSTITUTE FOR KEEPING THE ECU STABLE HAS NEVER BEEN WON OVER BY HARD ECU PROPOSALS OR SUGGESTIONS THAT THE INSTITUTE PERFORM MORE THAN A POLICY COORDINATING FUNCTION OUTSIDE ANALYSTS SHARED THE DOUBTS OVER THE DUAL ANCHOR PROPOSAL WHAT'S THE POINT ASKED RICHARD PORTES DIRECTOR OF THE LONDONBASED CENTER FOR ECONOMIC POLICY RESEARCH IF THE ECU IS SIMPLY IN A FIXED RELATION TO THE DEUTSCHE MARK THEN IT'S LIKE A DEUTSCHE MARK I SEE NO RATIONALE FOR IT AND CERTAINLY NO WAY IN WHICH THIS COULD DEAL WITH THE PROBLEM OF CURRENCY INSTABILITY IN THE COMMUNITY JULIE WOLF CONTRIBUTED TO THIS ARTICLE 9309170096 930917 ENRON UNIT'S PIPELINE EXPANSION HOUSTON CITRUS CORP JOINTLY OWNED BY ENRON CORP HOUSTON AND SONAT INC BIRMINGHAM ALA SAID IT RECEIVED FEDERAL CLEARANCE FOR A 900 MILLION EXPANSION OF A NATURALGAS PIPELINE SYSTEM IN FLORIDA CITRUS SAID ITS FLORIDA GAS TRANSMISSION CO UNIT RECEIVED AUTHORIZATION FROM THE FEDERAL ENERGY REGULATORY COMMISSION TO ADD ABOUT 815 MILES OF NEW PIPE THREE NEW COMPRESSOR STATIONS AND INCREASED COMPRESSION HORSEPOWER AT EIGHT OTHER STATIONS THE EXPANSION WILL ADD CAPACITY OF ABOUT 530 MILLION CUBIC FEET OF NATURAL GAS DAILY TO A SYSTEM THAT CURRENTLY CAN MOVE ABOUT 925 MILLION CUBIC FEET OF GAS A DAY THROUGH ITS 4497MILE SYSTEM THE EXPANSION IS NEEDED ACCORDING TO CITRUS TO ACCOMMODATE THE NEEDS OF ITS 29 CUSTOMERS MOSTLY UTILITIES INDEPENDENT POWER COMPANIES AND LARGE COMMERCIAL USERS THE SYSTEM MOVES NATURAL GAS FROM SOUTH TEXAS TO SOUTH OF MIAMI 9309170095 930917 MILKEN PLANS TO APPEAR WITH BLACK CAUCUS PANEL WASHINGTON MICHAEL MILKEN THE FORMER JUNKBOND KING WHO WENT TO PRISON FOR SECURITIESLAW VIOLATIONS PLANS TO APPEAR BEFORE THE CONGRESSIONAL BLACK CAUCUS TODAY TO TALK ABOUT WHAT HE KNOWS BEST HOW TO RAISE MONEY MR MILKEN WILL APPEAR ON A PANEL TO DISCUSS WAYS TO INCREASE INVESTMENT IN INNER CITY AND POOR AREAS THE PANEL IS ONE OF MANY BEING SPONSORED BY THE BLACK CAUCUS AS PART OF ITS ANNUAL CONFERENCE ON LEGISLATIVE ISSUES REP MAXINE WATERS D CALIF INVITED MR MILKEN BECAUSE OF HIS KNOWLEDGE OF FINANCE AND HIS INTEREST IN HELPING DISTRESSED COMMUNITIES MR MILKEN WHO IS CHAIRMAN OF THE MILKEN INSTITUTE FOR JOB AND CAPITAL FORMATION HAS SUPPORTED VARIOUS PROGRAMS AT SCHOOLS IN REP WATERS'S LOS ANGELES DISTRICT HE WANTS TO SHARE WHAT HE KNOWS ABOUT HOW THE WORLD WORKS A WATERS AIDE SAID MR MILKEN WAS RELEASED FROM PRISON EARLY THIS YEAR AFTER SERVING 22 MONTHS AND PAYING A 200 MILLION FINE HE MUST PERFORM THREE YEARS OF COMMUNITY SERVICE TO COMPLETE HIS SENTENCE I BELIEVE IN REHABILITATION REP WATERS SAID 9309170094 930917 INTERNATIONAL VW TO CUT FURTHER INVESTMENT PLANS FOR NEXT 5 YEARS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG STRUGGLING TO PUSH AHEAD WITH AN URGENT COSTCUTTING PROGRAM FORECAST A FURTHER REDUCTION OF ITS INVESTMENT PLANS FOR THE NEXT FIVE YEARS ESPECIALLY AT ITS CZECH SUBSIDIARY SKODA THE TROUBLED GERMAN CAR MAKER SAID IT IS SCRAPPING LONGSTANDING PLANS TO SECURE A 14 BILLION MARK 8775 MILLION FINANCING PACKAGE FOR THE CZECH UNIT THE FINANCING DEAL WITH THE INTERNATIONAL FINANCE CORP THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AND AN INTERNATIONAL BANKING CONSORTIUM WAS SUPPOSED TO BE SIGNED TODAY IN LONDON THE DECISION TO BACK OUT OF THE DEAL AT THE LAST MOMENT WAS PROMPTED BY FINDINGS FROM AN INTERNAL REVIEW VW SAID VW SAID ITS PROBE SHOWED THAT THE ADDITIONAL FINANCING WASN'T NECESSARY BECAUSE SKODA HAD ACHIEVED BETTERTHANEXPECTED SUCCESS IN INCREASING PRODUCTIVITY AND REDUCING COSTS CONSEQUENTLY THE TOTAL INVESTMENT REQUIRED AT SKODA WILL BE SIGNIFICANTLY LOWER THAN THE SEVEN BILLION MARKS ORIGINALLY SLATED FOR THE 1990S A VW SPOKESMAN SAID THE COMPANY DIDN'T YET HAVE A SPECIFIC NEW FIGURE CHAIRMAN FERDINAND PIECH HAS SAID VW EUROPE'S LARGEST CAR MAKER WILL REALIZE SOME 87 BILLION MARKS IN SAVINGS THIS YEAR AS PART OF THE CAMPAIGN TO STREAMLINE THE SPRAWLING COMPANY WHILE SOME OF THESE SAVINGS ARE COMING FROM STREAMLINING PRODUCTION LINES AND SQUEEZING SUPPLIER PRICES A FAIRSIZED CHUNK IS LIKELY TO COME FROM SLICING AWAY AT GENEROUS INVESTMENT PLANS ORIGINALLY MAPPED OUT BY MR PIECH'S EXPANSIONMINDED PREDECESSOR CARL HAHN INDUSTRY OBSERVERS SAID AFTER 11 YEARS OF CONSECUTIVELY RISING SALES IN A BOOMING CAR MARKET VW IS NOW STRUGGLING WITH MAJOR OVERCAPACITY AMID EUROPE'S SLUMPING CAR MARKET IN THE FIRST HALF OF THE YEAR VW RACKED UP 16 BILLION MARKS IN LOSSES MR PIECH SAYS THAT IN THE THIRD QUARTER OF THE YEAR THE COMPANY WILL BE OPERATING IN THE BLACK ALTHOUGH HE HAS RECENTLY HAD TO BACK OFF EARLIER PROMISES THAT THE COMPANY WOULD BREAK EVEN FOR ALL OF 1993 ANALYSTS ESTIMATE THE COMPANY COULD HAVE LOSSES OF BETWEEN 800 MILLION MARKS AND 125 BILLION MARKS FOR THE YEAR VW STRESSED THAT THE INVESTMENT CURTAILMENT AT THE CZECH SUBSIDIARY HAS NOTHING TO DO WITH THE LARGE LOSSES AT ITS SPANISH UNIT DISCLOSED EARLIER THIS WEEK IT IS NOT A MEASURE TO TRY TO REALIZE BREAKEVEN THIS YEAR OR TO BALANCE ONE OUT AGAINST THE OTHER A VW SPOKESMAN SAID BUT VW DID NOTE THAT THE DECISION WAS ALSO INFLUENCED BY MARKET CONDITIONS AND SAID THAT THE COMMON GOAL OF EFFORTS BY ALL PARTS OF THE COMPANY WAS THE RESTORATION OF AN APPROPRIATE PROFIT SITUATION AT THE VOLKSWAGEN CORPORATION 9309170093 930917 THE INDIAN WAY OF CAPITALISM BY CAIT MURPHY BOMBAY TO THE MERCHANTS IN BOMBAY'S CRAWFORD MARKET ECONOMIC REFORM IS A HIT WE DON'T HAVE TO GIVE SO MUCH MONEY TO SO MANY PEOPLE ANYMORE SAYS THE OWNER OF LAXMIDAS & CO A HOTEL AND RESTAURANT SUPPLIER NOW THAT WE'RE ALLOWED TO DO MORE THINGS THE OFFICIALS CAN'T DEMAND MONEY FOR MAZHER LAL WHO RUNS A HARDWARE BUSINESS THE BEST NEWS IS STABLE PRICES BECAUSE OF RUPEE DEPRECIATION AND LOWER INFLATION WHILE NR GOHI OF AJANTA TEXTILES PRAISES THE REFORMS THAT HAVE MADE EXPORTING EASIER THE MERCHANTS' COMMENTS ARE TRIBUTE TO THE EFFECTS OF THE ASSAULT ON THE LICENSE RAJ THAT PRIME MINISTER NARASIMHA RAO AND FINANCE MINISTER MANMOHAN SINGH HAVE LED OVER THE PAST TWO YEARS THE IRONY OF COURSE IS THAT MESSRS RAO AND SINGH WERE THEMSELVES ARDENT PRACTITIONERS OF THE INDIAN WAY TO SOCIALISM NOT VERY LONG AGO TODAY'S REFORMERS WERE YESTERDAY'S CONTROLLERS SAYS A HIGHRANKING MEMBER OF THE CONGRESS PARTY THE NATURAL QUESTION THEN IS CAN REFORM LAST AND SECOND WILL IT WORK THE ANSWER IS A FIRM YES BUT WHILE BUREAUCRATS WILL SLOW THE PACE OF REFORM TO INDIA'S DETRIMENT THEY CANNOT STOP IT ALTOGETHER THERE IS ALREADY TOO MUCH MOMENTUM AT WORK TO REVERSE COURSE IN 1991 INDIA WAS A MESS WITH HIGH INFLATION AND FOREIGNEXCHANGE RESERVES DOWN TO TWO WEEKS' WORTH OF IMPORTS AT THE LOWEST MOMENT THE RESERVE BANK OF INDIA HAD TO SHIP TONS OF GOLD RESERVES TO THE BANK OF ENGLAND IN ORDER TO BORROW AGAINST THEM IT WAS MR SINGH WROTE IN A JULY REPORT THE GRAVEST ECONOMIC CRISIS SINCE OUR INDEPENDENCE IN JULY 1991 INDIA CLEANED HOUSE IT KILLED MOST FORMS OF IMPORT LICENSING CUT TARIFFS EASED RESTRICTIONS ON FOREIGN INVESTMENT LIBERALIZED THE RUPEE AND RESTORED FISCAL ORDER THE RESULTS ARE IN INFLATION IS RUNNING AT LESS THAN 6 FOREIGN RESERVES ARE AT A COMFORTABLE 67 BILLION EXPORTS AND FOREIGN INVESTMENT ARE INCREASING AND THE FISCAL DEFICIT MAY DIP BELOW 5 OF GROSS DOMESTIC PRODUCT THIS YEAR THOSE NUMBERS DON'T TELL THE MORE IMPORTANT PART OF THE STORY THOUGH THREE SUCCESSIVE REFORM BUDGETS IN JULY 1991 FEBRUARY 1992 AND FEBRUARY 1993 HAVE BOTH REFLECTED AND ADVANCED A FUNDAMENTAL CHANGE IN INDIAN ECONOMIC THINKING SINCE INDEPENDENCE IN 1947 INDIAN POLICY HAD BEEN WARPED BY THE NEHRUVIAN CONCEPTION OF ECONOMICS WITH ITS DISTRUST OF MARKETS AND DEEPROOTED XENOPHOBIA FROM HIS PRISON CELL IN 1932 JAWAHARLAL NEHRU PREDICTED TO HIS DAUGHTER INDIRA IT IS THE TWILIGHT OF CAPITALISM WHICH HAS LORDED IT FOR SO LONG OVER THE WORLD AND WHEN IT GOES AND GO IT MUST IT WILL TAKE MANY AN EVIL THING WITH IT THESE DAYS INDIANS WHO ARE WORKING IN THE TRENCHES OF THE NATION'S ECONOMY DON'T HAVE MUCH TIME FOR NEHRUNOMICS SHASHI RUIA DIRECTOR OF ESSAR GROUP A SHIPPING AND STEEL CONGLOMERATE THAT LAST MONTH FLOATED A 75 MILLION CONVERTIBLE EUROBOND ISSUE A FIRST FOR AN INDIAN COMPANY PUTS IT BLUNTLY WE DON'T NEED DELHI IN ORDER TO SUCCEED ONE REASON THE NEHRUVIAN MINDSET CHANGED SO DECISIVELY IS THAT INDIA ALMOST DESPITE ITSELF MANAGED TO CREATE A MIDDLE CLASS OF 170 TO 190 MILLION PEOPLE THROUGH A FREE PRESS AND THE NEWER AND WILDLY POPULAR PHENOMENON OF SATELLITE TELEVISION THE MIDDLE CLASS HAS COME TO KNOW THAT INDIA HAS BEEN MARGINALIZED BY ITS POOR ECONOMIC PERFORMANCE A MIDDLE CLASS ALSO CREATES A CULTURE OF CONSUMPTION THAT FUELS ECONOMIC MODERNIZATION SHOBHA DE A SOCIAL OBSERVER AND NOVELIST OF THE BOMBAY GLITTERATI SAYS OF A CHARACTER IN HER POTBOILER SOCIALITE EVENINGS I CAN ONLY GIVE HER THE MOST FULSOME PRAISE FOR ACHIEVING WHAT 90 OF INDIA'S MIDDLE CLASS SPEND TWOTHIRDS OF THEIR LIVES TRYING TO ACHIEVE THE STEP UP TO THE GLORIES OF THE RICH AND FAMOUS SOME INDIAN POLITICIANS BEMOAN THIS CONSUMERIST TENDENCY AS A BETRAYAL OF THE GANDHIAN ETHIC BUT THAT IS NONSENSE IT IS COMPLETELY NATURAL FOR PEOPLE TO STRIVE FOR ACHIEVEMENT OPPORTUNITY COMFORT AND LEISURE IF NOT MS DE'S EXULTATION OF WEALTH AND IT IS COMPLETELY NATURAL TO RESENT THE MYRIAD WAYS IN WHICH THE INDIAN GOVERNMENT HAS BLOCKED SUCH IMPULSES THE SECOND MAJOR REASON LIBERALIZATION CAN BE SLOWED BUT NOT STOPPED IS THAT THERE IS A BROAD POLITICAL CONSENSUS THAT REFORMS PASSED SO FAR REQUIRE FURTHER ACTION TO WORK AND THAT THE RESULTS ARE PROMISING ENOUGH TO CONTINUE IT'S HARD TO ARGUE FOR EXAMPLE THAT TRADE LIBERALIZATION IS NASTY WHEN EXPORTS RISE 28 IN ONE QUARTER AS THEY DID IN THE FIRST QUARTER OF THIS FISCAL YEAR IT IS FAIR TO SAY HOWEVER THAT WHAT INDIA HAS DONE IN THE PAST TWO YEARS IS THE EASY PART MUCH TOUGHER ISSUES LIE AHEAD SUCH AS LABOR LAW REFORM AGRICULTURAL REFORM AND PRIVATIZATION WITH A WEAK GOVERNMENT AND STRONG LOBBIES AGAINST SPECIFIC POLICIES DRAMATIC LEAPS OF FREEMARKET FAITH ARE NOT IN THE OFFING SLOW PROGRESS AT THE MARGINS IS THE MORE LIKELY SCENARIO ONE AREA WHERE REFORM IS DESPERATELY NEEDED IS IN THE INDIAN STOCK MARKETS DESPITE A RECENT UPTICK THE BOURSES HAVE NOT EXACTLY BEEN CHOKED WITH FOREIGN CAPITAL PERHAPS 100 MILLION HAS BEEN STAKED A LITTLE TIME AT THE BOMBAY EXCHANGE SHOWS WHY IN AN OFFICE DOWNSTAIRS A YOUNG MAN SITS IN ONE CHAIR AND LEANS OVER ANOTHER TO APPLY AN OFFICIAL STAMP TO SETTLEMENT PAPERS IN WHAT LOOKS LIKE A PARODY OF THE BUREAUCRACY AT WORK HE DELIBERATELY INKS THE STAMP ROLLS IT BACK AND FORTH TWICE ON THE SHEAF OF PAPERS TUCKS IN THE LEFT CORNER TURNS THE PAGES OVER SLOWLY THEN STARTS ALL OVER AGAIN AT THE CRAMMED DELHI STOCK EXCHANGE HOUSED IN A DILAPIDATED BUILDING IN OLD DELHI BROKERS SIT ON THE CURB OUTSIDE OR I'M TOLD EVEN IN THE TOILETS TO BUY AND SELL SCRIP RAFIQ DOSSANI DIRECTOR OF JARDINE FLEMING INDIA SECURITIES NOTES THAT EACH SUBACCOUNT MUST GET SEPARATE APPROVAL A PROCESS THAT CAN TAKE A MONTH COMPLETING A TRANSACTION TAKES 3 1/2 MONTHS ESTIMATES SL RAO DIRECTORGENERAL OF THE NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH A FURTHER DETERRENT IS A 30 CAPITALGAINS TAX I BOUGHT AND SOLD SOME THINGS TODAY AND I HAD TO SIGN 40 FORMS SOME OF THEM TWO OR THREE TIMES MR RAO SAYS BUT THE STATE IS TRYING VERY HARD IT WILL COME IT WILL COME BECAUSE 30 MILLION INDIAN SHAREHOLDERS ARE GOING TO DEMAND BETTER SERVICE AND BECAUSE FOREIGN INVESTORS WILL FORCE SUCH INNOVATIONS AS COMPUTERS SITTING IN HIS SPARTAN OFFICE DECORATED UNDER A CRAYON PICTURE OF A CAR LABELED TOYOTA ILLUSTRATED BY HIS SON MR DOSSANI OF JARDINE FLEMING CONCLUDES IT'S LIKE THE BERLIN WALL IF WE JUST KEEP CHIPPING AWAY AT IT SOME DAY IT WILL GIVE WAY NOT A BAD ASSESSMENT FOR THE INDIAN ECONOMY AS A WHOLE MS MURPHY IS EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9309170092 930917 USAIR CUTS EAST COAST FARES TO RIVAL CONTINENTALLITE' ARLINGTON VA USAIR ANNOUNCED A RAFT OF EAST COAST FARE REDUCTIONS EFFECTIVE OCT 1 THAT IT SAID IS AIMED AT CONTINENTAL AIRLINES' NEW CONTINENTALLITE PRICING INITIATIVE THE USAIR GROUP INC UNIT'S LOW FARES WILL BE OFFERED FROM CITIES INCLUDING BUFFALO NY CLEVELAND BALTIMORE NORFOLK VA NEW ORLEANS GREENSBORO NC AND IN FLORIDA JACKSONVILLE TAMPA AND FORT LAUDERDALE THE FARES OF 49 TO 269 WILL BE OFFERED FOR ONEWAY TICKETS ON THE DAY OF DEPARTURE OR ROUNDTRIPS WITH NO ADVANCE PURCHASE PROVISIONS WEEKEND ONEWAY TARIFFS WILL COST HALF AS MUCH ALL TICKETS WILL BE NONREFUNDABLE THIS IS OUR RESPONSE TO CONTINENTAL ON ALL MARKETS THEY'LL ENTER WITH CONTINENTALLITE SAID A USAIR SPOKESMAN HE ADDED THAT USAIR'S SPECIAL PRICES ARE BEING OFFERED ON MORE ROUTES THAN CONTINENTAL'S LOWER FARES IN ORDER TO OFFER COMPETITIVE PRICES FROM NEARBY CITIES AS REPORTED HOUSTONBASED CONTINENTAL PLANS TO INTRODUCE ON OCT 1 A TEST OF LOWFARE SERVICES IN SEVERAL EAST COAST CITIES THE MOVE AIMS TO CREATE AN AIRLINE WITHIN AN AIRLINE FOR CONTINENTAL DELTA AIR LINES SAID THAT IT MATCHED THE USAIR PRICES ON FIVE ROUTES THREE FROM ATLANTA AND TWO FROM TAMPA FLA AMR CORP'S AMERICAN AIRLINES SAID IT WAS STUDYING THE USAIR INITIATIVE 9309170091 930917 INTERNATIONAL FOR ONE US FIRM THE FINANCIAL TIMES IS A LIMITED EDITION LONDON PAPER HOLDS A GRUDGE AGAINST AN OLD AD AGENCY SO IT BANS HAPLESS AFFILIATE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE FINANCIAL TIMES BRITAIN'S MAJOR BUSINESS NEWSPAPER HAS COVERED ITS SHARE OF CORPORATE SQUABBLES THIS ONE HAPPENS TO INVOLVE ITSELF IT ALL BEGAN IN JULY 1992 WHEN CORPORATE COMMUNICATIONS PLC WENT INTO COURTORDERED RECEIVERSHIP LEAVING UNPAID ABOUT 250000 386279 FOR ADVERTISEMENTS THE NEWSPAPER HAD RUN THE NEWSPAPER A UNIT OF PEARSON PLC RETALIATED BY REFUSING TO TAKE ADS FROM ANY FIRM ASSOCIATED WITH CORPORATE COMMUNICATIONS THE FT WON'T EVEN PRINT AN AD THAT MENTIONS A COMPANY ASSOCIATED WITH CORPORATE COMMUNICATIONS THIS IRKED GEORGESON & CO NEW YORK A FORMER INVESTOR RELATIONS UNIT OF CORPORATE COMMUNICATIONS THAT WAS SPUN OFF TO MANAGEMENT AS PART OF THE PARENT COMPANY'S LIQUIDATION PARTICULARLY AS GEORGESON SAYS IT NEVER STIFFED THE FT I THINK THAT'S THE MOST UNBELIEVABLY PETTY BEHAVIOR SAYS CHRISTOPHER JOLL CHIEF OF GEORGESON'S BRITISH UNIT THE FT SAYS IT TURNED DOWN GEORGESON'S REQUEST TO PLACE ADS LAST YEAR AND WHEN THE INVESTOR RELATIONS SOCIETY PLACED ADS IN THE FT RECENTLY FOR A CONFERENCE SPONSORED BY GEORGESON THE FT AND 10 OTHERS THE NEWSPAPER STRUCK GEORGESON'S NAME FROM THE AD IT'S ALL A LITTLE STRANGE SAYS MR JOLL WHO IS PARTICULARLY MIFFED BECAUSE HE SAYS THE COMPANY FOR WHICH CORPORATE COMMUNICATIONS PLACED THE ADS BA T INDUSTRIES PLC HAS SINCE PAID THE FT FOR THE ADS EVEN THOUGH IT HAD ALREADY PAID CORPORATE COMMUNICATIONS THE IRONY IS THE FT GOT ALL THE MONEY HE SAYS NO WAY RESPONDS BRIAN POWELL HEAD OF COMPLIANCE FOR THE NEWSPAPER HE SAYS THE BA T ADS WEREN'T THE ONLY ONES UNPAID BUT SAYS HE DOESN'T KNOW EXACTLY HOW MUCH THE FT BELIEVES IT IS STILL OWED CERTAINLY BA T DIDN'T RUN UP A BILL OF A QUARTER MILLION POUNDS ITSELF NOW GEORGESON AND THE FT ARE IN DISCUSSIONS THIS IS IN THE PROCESS OF BEING SORTED OUT MR POWELL SAYS 9309170090 930917 APT SATELLITE CONCLUDES PACT WITH 5 BROADCASTERS HONG KONG A CONSORTIUM OF FIVE INTERNATIONAL TELEVISION BROADCASTERS SAID THEY HAVE SIGNED DEFINITIVE AGREEMENTS WITH APT SATELLITE CO TO LEASE NINE TRANSPONDERS ON THE APSTAR 1 SATELLITE WHICH IS TO BE LAUNCHED IN MID1994 APSTAR 1 WILL PROVIDE DISTRIBUTION TO CABLE OPERATORS AND SATELLITEDISH OWNERS THROUGHOUT CHINA TAIWAN SOUTHEAST ASIA JAPAN AND KOREA THE CONSORTIUM IS EXPECTED TO CHALLENGE STAR TV THE REGION'S DOMINANT SATELLITE TELEVISION BROADCASTER FOR VIEWERS AND ADVERTISING DOLLARS MEDIA GIANT NEWS CORP RECENTLY ACQUIRED A CONTROLLING STAKE IN STAR TV FOR 525 MILLION THE CONSORTIUM COMPRISES TVB INTERNATIONAL LTD A UNIT OF TELEVISION BROADCASTS LTD HONG KONG TURNER BROADCASTING SYSTEM INC THE PARENT OF CNN ESPN ASIA LTD A SPORTS PROGRAMMING UNIT OF CAPITAL CITIES/ABC INC HBO PACIFIC PARTNERS A JOINT VENTURE INCLUDING TIME WARNER INC'S HBO ASIA HOLDINGS AND PARAMOUNT FILMS OF SOUTHEAST ASIA INC AND DISCOVERY COMMUNICATIONS INC THE PRIVATELY OWNED US OPERATOR OF THE DISCOVERY CHANNEL THE GROUP HAD SAID IT HAD RESERVED AS MANY AS 15 TRANSPONDERS ON THE APSTAR 1 SATELLITE 9309170089 930917 EASTMAN KODAK MAY PICK CHIEF IN SIX WEEKS BY JOAN E RIGDON AND JULIE AMPARANO LOPEZ STAFF REPORTERS OF THE WALL STREET JOURNAL EASTMAN KODAK CO PLANS TO NAME A NEW CHIEF EXECUTIVE AS EARLY AS SIX WEEKS FROM NOW AND IS PURSUING AT LEAST ONE CANDIDATE WHO HEADS UP A CONSUMER PRODUCTS COMPANY PEOPLE CLOSE TO KODAK SAID THE IDENTITY OF THE CONSUMER PRODUCTS CANDIDATE COULDN'T BE LEARNED A KODAK SPOKESMAN DECLINED TO COMMENT GERARD S ROCHE CHAIRMAN OF HEIDRICK & STRUGGLES COULDN'T BE REACHED FOR COMMENT HE IS HANDLING THE SEARCH FOR THE ROCHESTER NY PHOTOGRAPHY HEALTHCARE AND CHEMICALS CONCERN ANOTHER CANDIDATE ON A SHORT LIST PRESENTED TO KODAK'S BOARD LAST FRIDAY HAS RULED HIMSELF OUT KODAK DIRECTOR JOHN J PHELAN JR SAID THAT HE ISN'T A CANDIDATE BECAUSE HE IS ON THE SEARCH COMMITTEE FOR KODAK'S NEW CEO AND THAT WOULD BE A CONFLICT OF INTEREST I'M NOT NOW AND NEVER HAVE BEEN IN THE RUNNING FOR CEO HE SAID MR PHELAN DECLINED TO ANSWER ANY OTHER QUESTIONS ABOUT THE SEARCH GAULT ISN'T INTERESTED OF FIVE TOP CANDIDATES WHOSE NAMES WERE PRESENTED TO KODAK'S BOARD MR PHELAN WASN'T CONSIDERED A TOP CANDIDATE PEOPLE CLOSE TO THE COMPANY SAID ONLY ONE GOODYEAR TIRE & RUBBER CO CHAIRMAN AND CEO STANLEY GAULT HAS RULED HIMSELF OUT THE FOUR REMAINING TOP CANDIDATES ARE KODAK BOARD MEMBER RICHARD S BRADDOCK THE FORMER CITIBANK PRESIDENT WHO IS NOW CHIEF EXECUTIVE OF MEDCO CONTAINMENT SERVICES INC JOHN SCULLEY CHAIRMAN OF APPLE COMPUTER INC FORMER KODAK VICE CHAIRMAN J PHILLIP SAMPER AND VICTOR PELSON EXECUTIVE VICE PRESIDENT AT AMERICAN TELEPHONE & TELEGRAPH CO REACHED AT HOME FOR COMMENT MR PELSON DECLINED TO COMMENT EVEN WHEN ASKED TO RULE HIMSELF OUT MR SAMPER HAS PREVIOUSLY SAID HE WOULDN'T RULE OUT WANTING KODAK'S TOP JOB THE OTHER TWO CANDIDATES HAVE DECLINED TO RETURN REPEATED PHONE CALLS IN COMING WEEKS MR ROCHE IS EXPECTED TO CONTACT AND INTERVIEW CANDIDATES AND THEN CHOOSE FOUR FOR PRESENTATION TO KODAK'S SEARCH COMMITTEE WHICH IS HEADED BY ROBERTO C GOIZUETA CHAIRMAN OF COCACOLA CO KODAK IS EXPECTED TO NAME THE NEW CEO BY NOVEMBER FOLLOWS OUSTER OF WHITMORE KODAK HAS BEEN SEARCHING FOR A NEW CEO SINCE AUGUST WHEN THE BOARD ANNOUNCED THE OUSTER OF KAY R WHITMORE SAYING THAT HE LACKED A VISION FOR THE COMPANY AND HAD MOVED TOO SLOWLY TO CUT COSTS MR WHITMORE WILL STEP DOWN WHEN HIS SUCCESSOR IS NAMED SINCE THEN IT HAS REMAINED UNCLEAR WHO IS RUNNING THE COMPANY SHORTLY AFTER HE WAS OUSTED MR WHITMORE ANNOUNCED THAT KODAK WOULD LAY OFF 10000 WORKERS AS PART OF A COST CUTTING PLAN THE SAME ONE THAT THE BOARD VIEWED AS TOO LITTLE TOO LATE ACCORDING TO BOARD MEMBERS AND MR WHITMORE HIMSELF ALSO LAST MONTH A SECONDTIER MANAGER STUNNED INSIDERS AS WELL AS OUTSIDERS BY ANNOUNCING THAT HE WOULD MOVE 200 EXECUTIVES FROM THE NORTH AMERICA REGION OF KODAK'S CORE IMAGING GROUP TO WASHINGTON DC TO BE CLOSER TO ITS CUSTOMERS PEOPLE CLOSE TO THE COMPANY SAY THEY DOUBT KODAK WILL CARRY OUT THE MOVE 9309170088 930917 INTERNATIONAL GAIDAR DARLING OF THE REFORMERS RETURNING TO RUSSIAN GOVERNMENT BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S REFORMERS ARE ON THEIR WAY TO WINNING A MUCHNEEDED ROUND AS PRESIDENT BORIS YELTSIN SAID HE IS BRINGING BACK HIS PROMARKET FORMER PRIME MINISTER YEGOR GAIDAR AS FIRST DEPUTY PREMIER THIS IS THE BEST NEWS FROM RUSSIA IN MONTHS SAID ANDRE SHLEIFER A HARVARD ECONOMIST WHO ADVISES THE YELTSIN GOVERNMENT MR GAIDAR'S APPOINTMENT WOULD GREATLY STRENGTHEN THE REFORM CAMP IN A GOVERNMENT THAT HAS BEEN PARALYZED FOR MONTHS NOT ONLY BY FIGHTS BETWEEN THE PRESIDENT AND PARLIAMENT BUT BY BITTER TUSSLES WITHIN THE CABINET THE TWO CRUCIAL PLAYERS HAVE BEEN REFORMIST FINANCE MINISTER BORIS FYODOROV AND ECONOMICS MINISTER OLEG LOBOV WHO RESISTS THE REFORMS MR GAIDAR SACRIFICED AS ACTING PRIME MINISTER BY MR YELTSIN IN AN EFFORT TO PLACATE PARLIAMENTARY OPPONENTS IN DECEMBER COULD HELP TIP THE BALANCE TOWARD MR FYODOROV'S SIDE RUSSIA'S ITARTASS NEWS AGENCY QUOTED MR YELTSIN AS SAYING THAT MR GAIDAR'S RETURN TO GOVERNMENT WOULD SETTLE THE CONFLICT BETWEEN THE OTHER TWO DEPUTIES OLEG LOBOV AND BORIS FYODOROV MR LOBOV'S ECONOMICS MINISTRY IS DESCRIBED BY WESTERN ANALYSTS AS JUST A REVAMPED VERSION OF THE SOVIET CENTRALPLANNING DEPARTMENT GOSPLAN IN RECENT MONTHS MR LOBOV HAS ACCELERATED A DRIVE TO RETURN A HEAVIER DOSE OF STATE PLANNING TO RUSSIA'S ECONOMY MR LOBOV'S PUSH INCLUDES PLANS TO REREGULATE TRADE AND CONTINUE COSTLY SUBSIDIES TO FARMS AND STATE ENTERPRISES HE ALSO RECENTLY PRODUCED A PLAN TO DERAIL RUSSIAN PRIVATIZATION WHICH WITH A QUARTER OF THE WORK FORCE ALREADY EMPLOYED IN PRIVATE INDUSTRY HAS BEEN THE BIGGEST SUCCESS AMONG THE COUNTRY'S ATTEMPTED REFORMS MR FYODOROV ON THE OTHER HAND HAS BEEN BATTLING FROM THE FINANCE MINISTRY TO TRIM THE BUDGET AND STABILIZE THE RUBLE BY BRINGING STATE SUBSIDIES AND LOANS UNDER CONTROL TOGETHER WITH PRIVATIZATION CHIEF ANATOLY CHUBAIS MR FYODOROV HAS ALSO BEEN STRUGGLING TO MOVE PRIVATIZATION AHEAD BETWEEN THE TWO FACTIONS RUSSIA'S GOVERNMENT HAS BEEN FIGHTING WITHIN ITSELF SO VICIOUSLY THAT POLICY HAS BEEN DROWNING IN CONFUSION AND CONTRADICTION SAYS JEFFREY SACHS ANOTHER HARVARD ECONOMIST WHO ADVISES THE RUSSIAN GOVERNMENT ASKED IF MR GAIDAR WOULD TAKE OVER THE TURF OF THE CONSERVATIVE MR LOBOV MR YELTSIN TOLD THE PRESS THURSDAY THERE WILL BE SOME RESHUFFLE WITH LOBOV BUT AN AIDE TO MR YELTSIN SAID THAT MR LOBOV A YELTSIN CRONY FROM COMMUNIST DAYS IN SVERDLOVSK IS A GOOD FRIEND OF THE PRESIDENT AND THERE WILL ALWAYS BE A PLACE FOR HIM DETAILS OF MR GAIDAR'S BRIEF REMAIN UNCLEAR SO DOES THE QUESTION OF WHETHER MR GAIDAR WILL ACTUALLY END UP BACK IN THE CABINET AN AIDE TO MR GAIDAR TOLD THE RUSSIAN INTERFAX NEWS SERVICE THAT MR GAIDAR HAD ACCEPTED THE JOB BUT MR GAIDAR HIMSELF HAD MADE NO PUBLIC STATEMENT AS OF LATE YESTERDAY MR YELTSIN DISCLOSED THE APPOINTMENT IN AN OFFHAND FASHION WHILE REVIEWING TROOPS AT A MILITARY BASE NEAR MOSCOW YESTERDAY BUT HE ADDED THAT HE WOULDN'T SIGN THE NECESSARY DECREE UNTIL SATURDAY GIVEN THE PAST YEAR'S HISTORY OF DECISIONS MADE AND UNMADE I'M KEEPING MY FINGERS CROSSED SAYS MR SACHS ONE WESTERN OFFICIAL IN MOSCOW WHO WELCOMED THE PROSPECT OF MR GAIDAR'S RETURN ADDED I'M NOT SURE IT'S A TERRIFIC MOVE FOR GAIDAR IT'S TOUGH TO WORK FOR A WISHYWASHY PERSON MEANING MR YELTSIN THE HOPE IN THE REFORM CAMP IS THAT THE WISHYWASHINESS MAY BE ENDING MR YELTSIN PROMISED IN AUGUST THAT SEPTEMBER WOULD SEE THE START OF A SHOWDOWN TO DECIDE THE FATE OF AUTHORITY IN RUSSIA AND ONE WESTERN DIPLOMAT IN MOSCOW SPECULATES THAT MR GAIDAR'S APPOINTMENT WOULD HAVE NOT ONLY AN ECONOMIC BUT A STRONG POLITICAL DIMENSION MR GAIDAR 37 YEARS OLD A SQUARE RUDDYCHEEKED AND ENERGETIC MAN FAVORS EARLY ELECTIONS TO PICK A NEW PARLIAMENT THIS WOULD BE ONE WAY FOR MR YELTSIN TO GET AROUND THE CURRENT PARLIAMENT'S OPPOSITION TO HIS PROPOSED CONSTITUTION DRAFTED THIS SUMMER IN RUSSIA IT IS IMPOSSIBLE TO DISENTANGLE POLITICAL AND ECONOMIC PROBLEMS IN ANY EVENT AMONG THE PROBLEMS THAT MR GAIDAR WOULD BE TAKING ON IS INFLATION THAT SOARED TO 30 IN AUGUST ALONE FUELED BY A CENTRAL BANK THAT IS MORE RESPONSIVE TO THE DEMANDS OF THE SOVIETINSTALLED SUBSIDYPRONE PARLIAMENT THAN TO GOVERNMENT HOPES OF STABILIZING THE RUSSIAN ECONOMY THAT IS ALSO A REASON WHY MR GAIDAR'S RETURN WOULD BE ESPECIALLY WELCOMED BOTH BY REFORMERS IN RUSSIA AND BY THE WEST A SENIOR US OFFICIAL WEDNESDAY DESCRIBED THIS MOMENT IN RUSSIAN POLITICS AS A CRUCIAL JUNCTURE IN THE PUSH FOR STABILIZATION RIDING ON THE OUTCOME OF THE POLITICAL TUGOFWAR ARE AMONG OTHER THINGS A 3 BILLION STANDBY CREDIT FROM THE INTERNATIONAL MONETARY FUND AND 25 BILLION IN US AID EARMARKED FOR RUSSIA BY THE US SENATE 9309170087 930917 INTERNATIONAL SOUTH KOREA'S CORRUPTION CRACKDOWN HINDERS ECONOMY IT SEEKS TO CLEAN UP BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA PRESIDENT KIM YOUNG SAM'S CAMPAIGN AGAINST CORRUPTION HAS FORCED MEMBERS OF THE RULING ELITE TO DISCLOSE THEIR WEALTH SHEDDING LIGHT ON SOUTH KOREA'S MURKY MIX OF POLITICS AND INDUSTRY BUT POLICYMAKERS AND BUSINESSMEN SAY THE CAMPAIGN WHILE HEALTHY OVERALL HAS A NEGATIVE SIDE EFFECT AN ENVIRONMENT IN WHICH FEW OFFICIALS DARE CHALLENGE THE PRESIDENT'S SPUTTERING ECONOMIC POLICIES SUCH IS THE PARADOX OF THE MORE HONEST AND OPEN NEW KOREA MR KIM SAYS HE WANTS TO BUILD IT IS A COPERNICUS DILEMMA THE DIRECTOR OF A LOCAL SECURITIES FIRM SAID YOU'LL BE PERSECUTED IF YOU TELL THE TRUTH SO YOU HAVE TO KID YOURSELF INTO BEING SILENT THE TRUTH HURTS AFTER ALL LAST WEEK THE GOVERNMENT ANNOUNCED IT EXPECTS ECONOMIC GROWTH OF 47 THIS YEAR DOWN FROM AN ORIGINAL ESTIMATE OF 57 AND FAR BELOW THE USUAL PACE OF 9 UNEMPLOYMENT IS AT A 10YEAR HIGH OF 3 THAT MAY SEEM HEALTHY BY WORLD STANDARDS BUT IT FAILS TO REFLECT THE GROWING NUMBER OF COLLEGE GRADUATES WHO CAN'T ENTER THE WORK FORCE ECONOMISTS SAY SOUTH KOREA HAS NO SOCIAL SAFETY NET WHICH MEANS FRUSTRATED YOUNG JOBSEEKERS MUST RELY ON THEIR PARENTS FOR SUPPORT AN ECONOMIC STIMULUS PACKAGE INTRODUCED BY SEOUL IN MARCH HAS FALLEN FLAT THERE IS NO CLEAR PLAN FOR THE ECONOMY A WESTERN DIPLOMAT SAID THE OPPOSITION HAS A GOLDEN OPPORTUNITY TO CRITICIZE THE GOVERNMENT'S PERFORMANCE BUT NO ONE IS DOING ANYTHING THAT IS BECAUSE LAWMAKERS MANY OF WHOM WERE SITTING ON CONSPICUOUS FORTUNES HIDDEN UNDER FALSE NAMES ARE TOO BUSY DUCKING THE PRESIDENT'S REFORMS MOST FEARFUL ARE INDUSTRIALISTS AND POLITICIANS WHO STOOD IN THE WAY OF MR KIM'S RISE FROM DISSIDENT TO LEADER OF THE RULING PARTY THE ANTICORRUPTION DRIVE HAS CAST A WIDE NET HURTING EVEN SOME OF THE PRESIDENT'S FRIENDS BUT IT SEEMS TO HAVE ENSNARED MORE OF MR KIM'S POLITICAL RIVALS THAN HIS ALLIES THE GIANT HYUNDAI GROUP FOR EXAMPLE HAS BEEN CUT OFF FROM GOVERNMENT FUNDING SINCE ITS FOUNDER CHUNG JU YUNG EMBARKED ON A POLITICAL CAREER AIMED LARGELY AT THE PRESIDENT AND HIS PARTY MR KIM KOREA'S FIRST CIVILIAN LEADER IN 30 YEARS LAUNCHED HIS ANTICORRUPTION CAMPAIGN IMMEDIATELY AFTER ASSUMING OFFICE BY MAKING FRUGALITY FASHIONABLE HE CLOSED THE PRESIDENTIAL GOLF DRIVING RANGE REPLACED GOURMET MEALS WITH NOODLES AT CABINET LUNCHEONS AND STATE DINNERS AND LEVELED THE GUEST VILLAS THAT DOTTED THE EXECUTIVE GROUNDS SUCH GESTURES HAVE GONE OVER WELL WITH VOTERS GIVING MR KIM 70 APPROVAL RATINGS SPECULATION LAST MONTH THE PRESIDENT SHOCKED THE NATION WITH A SNAP EDICT THAT BANNED FINANCIAL TRANSACTIONS UNDER FALSE NAMES THIS MONTH PROMPTED BY MR KIM'S EXAMPLE MORE THAN A THOUSAND HIGHRANKING OFFICIALS DISCLOSED PERSONAL WEALTH AVERAGING 15 MILLION SOME OFFICIALS WERE PRESSURED TO RESIGN SIMPLY BECAUSE THEY MADE MONEY IN THE PROPERTY MARKET LAST FRIDAY KOREA'S CHIEF JUSTICE STEPPED DOWN AFTER HE ANNOUNCED HE WAS WORTH 35 MILLION LARGELY FROM PROPERTY INVESTMENTS HE MADE WHILE PRACTICING LAW THAT WAS FOLLOWED BY THE RESIGNATION MONDAY OF THE PROSECUTOR GENERAL WHO HAD ALSO PROFITED FROM LAND SPECULATION WHILE BLUECOLLAR VOTERS MAY RELISH THE HUMILIATION OF THE RICH IT IS A FEATURE OF THE NEW KOREA THAT BUSINESSMEN AND POLICYMAKERS FIND UNSETTLING IS THIS GOOD FOR THE COUNTRY OR ANOTHER FORM OF DICTATORSHIP ASKED KIM SANG WOO AN AIDE TO KIM DAE JUNG THE FORMER DISSIDENT AND RETIRED POLITICIAN WHO WAS RUNNERUP TO MR KIM IN LAST YEAR'S ELECTION HOW FAR DO YOU GO IN ORDER TO CONDUCT REFORM AND WHAT DEFINITION OF CORRUPTION DO YOU USE MEANWHILE CAPITAL INVESTMENT IN INDUSTRY HAS FALLEN NEARLY 15 IN THE FIRST HALF IN PART BECAUSE OF THE ECONOMIC SLOWDOWN BUT ALSO BECAUSE BUSINESS LEADERS FEAR THE ANTICORRUPTION DRIVE MIGHT BE TRAINED AT THEM NEXT LACK OF STABILITY TO CLEAN UP GOVERNMENT IS GOOD FOR THE ECONOMY IN THE LONG RUN SAID A FORMER RULING PARTY MEMBER WHO IS NOW AN OPPOSITION LEADER BUT THE WAY THE ADMINISTRATION IS GOING ABOUT IT ONE SURPRISE AFTER ANOTHER IT MAKES BUSINESSMEN WONDER WHAT IS GOING TO HAPPEN TOMORROW MR KIM HAS MADE IT CLEAR THAT HE CONSIDERS MANY OF KOREA'S HUGE CONGLOMERATES TO BE BLOATED AND CORRUPT SEVERAL PROMINENT BUSINESSMEN WHO ENJOYED ACCESS TO PREVIOUS PRESIDENTS HAVE BEEN SNUBBED BY THE KIM ADMINISTRATION NONE MORE SO THAN MR CHUNG SOON AFTER HE WAGED A FAILED BID FOR THE PRESIDENCY LAST DECEMBER HE WAS INDICTED FOR HAVING ALLEGEDLY EMBEZZLED COMPANY FUNDS HYUNDAI OFFICIALS SAID THE CHARGES ARE PART OF A POLITICAL VENDETTA WAGED BY MR KIM'S ALLIES HYUNDAI AFFILIATES THEY SAID HAVE BEEN CUT OFF FROM CREDIT ROUTINELY DOLED OUT BY THE CENTRAL BANK ADMINISTRATION OFFICIALS HAD NO OFFICIAL COMMENT ON HYUNDAI'S FUNDING CRUNCH PRIVATELY SEVERAL SAID THE CONGLOMERATE IS BEING SINGLED OUT FOR POLITICAL PURPOSES 9309170086 930917 JAPANESE PAYOUTS STEADY DESPITE FALLING EARNINGS TOKYO THE RATIO OF JAPANESE CORPORATE EARNINGS DISTRIBUTED TO STOCKHOLDERS IN THE FORM OF DIVIDENDS JUMPED DURING THE LATEST FISCAL YEAR AS COMPANIES HELD PERSHARE PAYOUTS STEADY DESPITE FALLING PROFITS JAPAN'S NATIONAL CONFERENCE OF STOCK EXCHANGES REPORTED THE REPORT SAID THAT WHILE THE 5818 LEVEL WAS LITTLE CHANGED FROM THE 5932 LEVEL OF THE FISCAL YEAR ENDED MARCH 1976 RETURN ON EQUITY OVER THE SAME PERIOD SKIDDED TO 319 FROM 687 THE REPORT SAID THE RISE IN DIVIDENDS PAID COMPARED WITH EARNINGS MAINLY REFLECTS THE DECISION OF COMPANIES TO HOLD DIVIDEND PAYMENTS STEADY DESPITE A ROUGHLY 36 PLUMMET IN TOTAL PROFITS IT SAID THAT DURING THE SAME PERIOD TOTAL DIVIDEND PAYOUTS WERE OFF 28 OF THOSE SURVEYED WITH DECLINES IN PROFITS 64 OF COMPANIES LEFT THEIR PERSHARE DIVIDENDS UNCHANGED AND OF THOSE WITH RISES THAT FIGURE WAS 57 9309170085 930917 RULE NO 99B VENDOR MUST BUFF EVERY SHOE FROM LEFT TO RIGHT' BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL HACKENSACK NJ FOR 27 YEARS ROBERT TAYLOR HAS SHINED SHOES IN THE BERGEN COUNTY COURTHOUSE SO MUCH FOR EXPERIENCE COURTHOUSE OFFICIALS HAVE DECIDED TO TAKE BIDS ON THE BUSINESS AND HAVE COME UP WITH A FEW RULES FOR HOW THE JOB SHOULD BE PROPERLY DONE WELL MORE THAN A FEW THE CONTRACT SPECIFICATIONS STRETCH 18 PAGES AMONG THE MAIN POINTS A DRESS CODE SPECIFYING A KNEELENGTH FRONTWRAP SMOCK AND THE REQUIREMENT OF A 1 MILLION LIABILITY INSURANCE POLICY FURTHERMORE THE OPERATION MUST BE OPEN BETWEEN 830 AM TO 4 PM THE STAND MUST BE APPROVED THE VENDOR MUST PROTECT THE COURTHOUSE'S TERRAZZO FLOOR FROM SPILLS AND THE CONCESSION WILL BE LOST IF CLOSED MORE THAN FIVE CONSECUTIVE DAYS WITHOUT PERMISSION FROM THE COUNTY ALL THIS MR TAYLOR SAYS FOR A JOB THAT INVOLVES SOME EIGHT TO 10 SHOESHINES A DAY AT 2 EACH THIS IS STUPID SAYS MR TAYLOR WHO IS 53 YEARS OLD A MILLIONDOLLAR INSURANCE POLICY THEY WANT ME TO PUT ON A UNIFORM PUT IN A CASH REGISTER I DON'T UNDERSTAND ANY OF IT HE ADDS I'VE BEEN COMING IN CLEAN EVERY DAY MY HAIR IS CUT SHORT NO EARRINGS I WEAR AN APRON MY CABINET IS BRANDNEW IT TOOK ME A YEAR TO SAVE THE MONEY TO BUY A NICE LITTLE STAND MR TAYLOR IS WELLLIKED AROUND THE COURTHOUSE AND HIS PROBLEM HAS STIRRED PETITION DRIVES BUT OFFICIALS ARE STANDING ON THEIR DECISION IN THIS CASE THE COURTHOUSE IS BEING USED BY SOMEBODY FOR HIS OWN PERSONAL GAIN AND IF SOMETHING HAPPENS THE TAXPAYERS WILL HAVE TO FOOT THE BILL SAYS LESLIE SHENKLER THE COUNTY'S GENERAL SERVICES DIRECTOR COUNTY OFFICIALS NOTE THAT MANY OTHER GOVERNMENTAL ENTITIES SIMILARLY REQUIRE PRIVATE INDIVIDUALS TO BID FOR THE RIGHT TO RUN CONCESSIONS ON PUBLIC PROPERTY AND SAY THAT LIABILITY INSURANCE IS A NECESSITY EVEN FOR THE SMALLEST BUSINESS SAYS MR TAYLOR IN 27 YEARS NO ONE HAS EVER FALLEN OFF THAT CHAIR NOT EVEN ONE TIME HAS A PERSON GOT A SPLINTER HERE ANXIOUS TO KEEP THE CONCESSION HE SUBMITTED A BID BUT STILL HASN'T ARRANGED THE INSURANCE COVERAGE ATTORNEY ROBERT GALANTUCCI ONE OF MR TAYLOR'S CUSTOMERS WHO HAS VOLUNTEERED TO HELP HIM HOPES THE INSURANCE REQUIREMENT WILL BE DROPPED AS GOVERNMENT WINDS DOWN IN EVERY OTHER SOVEREIGNTY HE SAYS WE WIND UP WITH SPECS FOR A SHOESHINE GUY 9309170084 930917 INTERNATIONAL BRIEF CIE DE STGOBAIN FIRSTHALF NET PLUNGED 69 ON 78 DECLINE IN REVENUE FRENCH GLASS AND CONSTRUCTION MATERIALS GROUP CIE DE STGOBAIN REPORTED THAT FIRSTHALF NET INCOME DROPPED 69 FROM A YEAR EARLIER TO 462 MILLION FRANCS 83 MILLION FROM 149 BILLION FRANCS THE COMPANY LARGELY BLAMED THE PLUMMET IN ITS RESULTS ON THE ECONOMIC CRISIS AFFLICTING EUROPE AND ITS MARKETS REVENUE DROPPED 78 TO 3574 BILLION FRANCS FROM 3877 BILLION FRANCS ALTHOUGH THE SALE OF SAINTGOBAIN'S COVERLAND UNIT HAD A NEGATIVE EFFECT ON REVENUE IT WAS OFFSET BY THE CONTRIBUTION FROM THE ACQUISITION OF ITALIAN UNIT TUBIGHISA THE COMPANY SAID 9309170083 930917 LABOR DILEMMA AUTO PACT LEAVES GM HARD CHOICE GO ALONG OR CONFRONT THE UNION DOWNSIZING' GOALS DON'T FIT WITH FORDUAW ACCORD THAT RETAINS STATUS QUO RISE IN PAY AND PENSION COSTS BY JOSEPH B WHITE AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT ONCE AGAIN THE UNITED AUTO WORKERS NEGOTIATED A NATIONAL AUTOINDUSTRY LABOR AGREEMENT THAT IS GOOD FOR FORD MOTOR CO AND BAD FOR STRUGGLING GENERAL MOTORS CORP THE TENTATIVE THREEYEAR AGREEMENT REACHED LATE WEDNESDAY BY UAW LEADERS AND FORD EXECUTIVES WOULD LARGELY CONTINUE THE STATUS QUO IN BIG THREE LABOR CONTRACTS IT MARKS THE FAILURE OF A YEARLONG EFFORT BY GM PRESIDENT JOHN F SMITH JR TO CONVINCE UNION LEADERS THAT GM NEEDS FUNDAMENTAL CHANGES IN ITS LABORCOST STRUCTURE TO MAKE ITS US VEHICLE OPERATIONS COMPETITIVE WITHOUT LABOR RELIEF GM SAYS IT COULD ACCELERATE THE DISMANTLING OF ITS PARTS OPERATIONS UAW PRESIDENT OWEN BIEBER WHO HAS BEEN BRIEFED EXTENSIVELY BY GM EXECUTIVES ABOUT THE NO 1 AUTO MAKER'S COST PROBLEMS SAYS GM WON'T BE ALLOWED TO BREAK THE NEW PATTERN UAW LEADERS WANT STRONG JOB AND INCOME SECURITY PROTECTIONS AT GM WHICH HAS PLANS THAT COULD RESULT IN THE ELIMINATION OF SOME 90000 JOBS BY THE LATE 1990S AND IN FACT THE CONVENTIONAL WISDOM AMONG INDUSTRY ANALYSTS AND UAW OFFICIALS IS THAT GM WILL SETTLE FOR WHITTLING AWAY AT COSTS WITHIN THE FORD PATTERN BUT THERE ARE THOSE AT GM STARTING WITH THE COMPANY'S OUTSIDE DIRECTORS WHO ARGUE THAT THE AUTO MAKER MUST BUCK THE PATTERNBARGAINING TRADITION EVEN THOUGH THAT RISKS A DISRUPTIVE CONFRONTATION WITH THE UAW AFTER ALL GM'S BOARD PUSHED OUT THE COMPANY'S LAST CHAIRMAN ROBERT C STEMPEL PARTLY BECAUSE HE WASN'T CUTTING COSTS AGGRESSIVELY ENOUGH IT INSTALLED MR SMITH TO SPEED UP THE PROCESS AND LEAD A TURNAROUND DRIVE UNDER THE TENTATIVE NEW ACCORD FORD WOULD PAY LOWER WAGES TO NEWLY HIRED HOURLY WORKERS FOR THREE YEARS INSTEAD OF 18 MONTHS FORD ALSO WOULD GET CERTAIN MECHANISMS TO TUG WORKERS INTO LOWERCOST HEALTHCARE PLANS ALTHOUGH IT DIDN'T SUCCEED IN GETTING UAW WORKERS TO PAY PREMIUMS FOR HEALTH INSURANCE UAW OFFICIALS WILL TRY TO USE THE FORD AGREEMENT WHICH IS SUBJECT TO RANKANDFILE RATIFICATION AS THE PATTERN FOR A CONTRACT WITH CHRYSLER CORP AS WELL AS WITH GM UAW WORKERS WOULD GET 3 BASEPAY INCREASES THIS YEAR AND LUMPSUM PAYMENTS IN THE NEXT TWO YEARS PLUS SWEETER PENSIONS THE HIGHER PENSION BENEFITS MORE THAN 200 A MONTH WOULD AGGRAVATE ONE OF GM'S BIGGEST PROBLEMS AN UNFUNDED PENSION LIABILITY ESTIMATED AT BETWEEN 14 BILLION AND 19 BILLION EVEN WORSE FOR GM IS THE CONTINUATION OF A JOB AND INCOMEPROTECTION PROGRAM THAT PROMISES AS MUCH AS 95 OF FULL PAY TO LAIDOFF WORKERS EVEN THOSE WHOSE JOBS DISAPPEARED AS LONG AGO AS 1987 THIS PROGRAM HAS COST GM NEARLY 3 BILLION DURING THE PAST THREE YEARS NOW GM IS REELING FROM 17 BILLION IN US LOSSES SINCE 1990 NEITHER MANAGEMENT NOR THE UNION RELISHES THE POSSIBLE LABOR IMPLICATIONS OF GM'S TRYING TO CUT ITS OWN DEAL WITH THE UAW THE INDUSTRY HASN'T FACED A NATIONWIDE STRIKE BY THE UAW SINCE 1985 WHEN THE AUTO WORKERS WALKED OFF THE JOB AT CHRYSLER FOR 12 DAYS TO PERSUADE THE NO 3 AUTO MAKER TO RETURN TO THE BIG THREE PATTERN IT LEFT DURING ITS BRUSH WITH BANKRUPTCY IN THE EARLY 1980S BUT GM DIRECTORS HAVE VOWED THEY WON'T REPEAT THE EXPERIENCE OF 1990 THEN MR STEMPEL AGREED TO A LABOR PACT THAT SADDLED GM WITH CONTINUING TO PAY THOUSANDS OF WORKERS WHOSE GM JOBS HAD DISAPPEARED GM'S NONEXECUTIVE CHAIRMAN JOHN G SMALE HAS VISITED DETROIT IN RECENT WEEKS AND HAS EXPRESSED CONCERN THAT GM'S MANAGEMENT HASN'T DONE ENOUGH TO CONVINCE RANKANDFILE WORKERS THAT THE AUTO MAKER'S PROBLEMS REQUIRE SIGNIFICANT DEPARTURES FROM THE STATUS QUO CERTAINLY MANY UAW LOCALUNION LEADERS AND MEMBERS AT GM SEEM UNMOVED BY THE COMPANY'S PLEAS FOR RELIEF I DON'T BELIEVE IN CONCESSIONS UNLESS THEY PROVE TO ME BEYOND A SHADOW OF A DOUBT THEY'VE GOT TO HAVE IT SAYS KARL BOECKER PRESIDENT OF THE UAW LOCAL AT GM'S DEFIANCE OHIO FOUNDRY HE RECALLS HOW IN 1982 AFTER HOURLY WORKERS AGREED TO MAKE CONCESSIONS TO HELP GM THROUGH A RECESSION ROGER B SMITH THEN CHAIRMAN OF GM TURNED AROUND AND MADE IT EASIER FOR EXECUTIVES TO EARN BONUSES THEY TOOK IT AWAY FROM THE HOURLY AND GAVE IT TO THE SALARIED MR BOECKER SAYS THAT STILL HURTS AND THE MAJORITY OF PEOPLE REMEMBER IT OFFICIALLY GM IS STAYING MUM ON THE FORDUAW DEAL WE AREN'T GOING TO PUBLICLY SPECULATE ON HOW THE AGREEMENT MAY APPLY TO GM WE'LL LEAVE THOSE KINDS OF DISCUSSIONS FOR THE BARGAINING TABLE GM'S TOP NEGOTIATOR GERALD A KNECHTEL SAID IN A STATEMENT OUR GOAL REMAINS AS IT HAS BEEN FROM THE START TO REACH AN AGREEMENT WITH THE UAW THAT ADDRESSES THE CHALLENGES FACING GM AND THAT IS FAIR TO ALL CONCERNED WE LOOK FORWARD TO THE EVENTUAL RESUMPTION OF FULLSCALE BARGAINING WITH THE UAW BUT THE FORD DEAL IS A CLEAR SETBACK FOR GM'S EFFORTS TO ACCELERATE THE PACE OF RESTRUCTURING AND COSTCUTTING IN ITS BATTERED NORTH AMERICAN OPERATIONS IN HINDSIGHT SOME GM EXECUTIVES ARE SAYING PRIVATELY THAT THE COMPANY MISCALCULATED WHEN IT DIRECTED ITS APPEALS FOR RELIEF LARGELY TO THE TOP UAW BRASS NOT THE RANKANDFILE MEMBERS WHO RATIFY CONTRACTS AND KEEP UAW LEADERS IN POWER NOW GM OFFICIALS ARE WEIGHING WHETHER TO LAUNCH A BROAD PUBLIC CAMPAIGN TO PERSUADE THE COMPANY'S 265000 UAWREPRESENTED EMPLOYEES THAT THEY SHOULD SACRIFICE TO SUSTAIN GM'S TURNAROUND HOW AGGRESSIVELY TO MAKE THIS CASE IS THE SUBJECT OF CONSIDERABLE DEBATE INSIDE GM OFFICIALS SAY EITHER WAY FORD AND CHRYSLER STAND TO GAIN FROM THE NEW CONTRACT THEY ACCOMPLISHED THEIR OWN PAINFUL PROGRAMS OF COSTCUTTING AND LAYOFFS IN THE 1980S NOW CHRYSLER AND FORD ARE GAINING MARKET SHARE RETURNING TO THE BLACK AND REBUILDING THEIR BALANCE SHEETS SO AS THEY CONTEMPLATE HIRING NEW WORKERS THEY STAND TO PROFIT FROM THE UAW'S ACQUIESCENCE IN STARTING NEW EMPLOYEES AT 75 OF STANDARD UAW BASE PAY OF ABOUT 18 AN HOUR WHILE THAT WILL HOLD DOWN FORD'S AND CHRYSLER'S LABOR COSTS FOR NEW WORKERS IT WON'T DO GM ANY GOOD AT ALL GM WON'T BE HIRING ANY SIGNIFICANT NUMBERS OF PEOPLE DURING THE LIFE OF THIS CONTRACT ITS US OPERATIONS ARE STILL LOSING MARKET SHARE AND ARE STILL LOSING MONEY HUGE PENSION AND MEDICAL LIABILITIES HAVE LEFT THEM WITH A NEGATIVE NET WORTH OF 57 BILLION THE DEAL STRUCK AT FORD CONTINUES JOBSECURITY PROGRAMS THAT WILL WORK AGAINST GM'S PLANS TO REDUCE STAFFING AND SLOW ITS EFFORTS TO RAISE PRODUCTIVITY AND CUT COSTS THIS REPEATS A CYCLE THAT GOES BACK TO 1987 WHEN FORD AND THE UAW NEGOTIATED A PATTERN CONTRACT THAT BROADENED INCOME SECURITY FOR LAID OFF WORKERS AND REQUIRED BIG THREE AUTO MAKERS TO REHIRE ONE LAID OFF WORKER FOR EVERY TWO THAT QUIT OR RETIRED THIS PROVISION HAMSTRUNG GM DURING THE LATE 1980S AS IT BEGAN SCRAMBLING TO CUT ITS US PAYROLLS IN THE FACE OF COLLAPSING SALES GM HAS REDUCED ITS HOURLY WORK FORCE TO 265000 FROM 329000 IN 1990 WHEN IT NEGOTIATED THE LAST INDUSTRYWIDE PATTERN AGREEMENT BUT GM IS SHEDDING JOBS AND MARKET SHARE FASTER THAN IT IS SHEDDING PAID WORKERS THE COMPANY NOW HAS ABOUT 14000 HOURLY WORKERS ON LONGTERM LAYOFF DRAWING ALL OR PART OF THEIR FULLTIME PAY GM'S US CAR SALES MEANWHILE HAVE BEEN LAGGING BEHIND THE INDUSTRYWIDE RECOVERY IN AUGUST GM'S SHARE OF THE US PASSENGERCAR MARKET FELL BELOW 30 FOR THE FIRST TIME SINCE THE DEPRESSION EXCEPTING PERIODS AFFECTED BY STRIKES GM'S SLIDING MARKET SHARE IS BOTH A SYMPTOM AND A CAUSE OF ITS COMPETITIVE HANDICAPS IN 1992 ITS US LOSSES AVERAGED MORE THAN 1000 FOR EVERY VEHICLE SOLD REFLECTING IN PART THE COSTS OF CARRYING THOUSANDS OF WORKERS RENDERED REDUNDANT BY LOST SALES THAT IS 901 MORE PER CAR THAN FORD LOST IN THE US LAST YEAR GM OFFICIALS SAY THAT FORD'S ADVANTAGE IS CONSIDERABLY MORE ONCE PROFITS FROM FINANCE AND NONAUTO UNITS ARE DEDUCTED THE UAW FACES RISKS IN THIS SITUATION TOO GM COULD ACCELERATE THE DISMANTLING OF ITS 24 BILLIONAYEAR AUTOMOTIVE COMPONENTS GROUP THE LARGEST AUTOMOTIVEPARTS PRODUCER IN THE WORLD MR KNECHTEL THE GM NEGOTIATOR HAS SAID IN THE PAST THAT UNLESS GM CAN GET SIGNIFICANT LABORCOST CONCESSIONS IT MAY SELL OR CLOSE MORE OF ITS PARTS OPERATIONS GM'S AUTOMOTIVE COMPONENTS GROUP PRODUCES SOME 70 OF THE PARTS USED IN GM VEHICLES BUT GM PAYS ITS PARTS WORKERS WAGES AND BENEFITS THAT TOTAL 42 AN HOUR DOUBLE OR TRIPLE THE LEVELS THAT INDEPENDENT SUPPLIERS PAY EVEN TO UAWREPRESENTED WORKERS A MAJOR REASON FORD AND CHRYSLER EARN MORE MONEY PER VEHICLE THAN GM IS THAT THEY PRODUCE FEWER OF THEIR OWN PARTS AND RELY MORE ON LOWERCOST SUBCONTRACTORS GM ALREADY HAS PUT PARTS OPERATIONS WITH 3 BILLION A YEAR IN SALES ON THE BLOCK THE COMPANY NOW IS STEPPING UP THE PACE OF EFFORTS TO CLOSE DEALS TO SHED THESE BUSINESSES AS WELL AS SOME OTHER NONAUTOMOTIVE OPERATIONS ON WEDNESDAY GM ANNOUNCED IT HAD A DEAL TO SELL ITS ALLISON GAS TURBINE OPERATION TO MANAGERS AND INVESTORS LED BY THE FIRM CLAYTON DUBILIER & RICE THIS SALE ALONE WILL TAKE 4700 JOBS OFF GM'S BOOKS GM IS CONSIDERING AN OFFER FROM ANOTHER GROUP TO PURCHASE FIVE AXLE AND FORGE OPERATIONS EMPLOYING 7000 WORKERS BROADENING A PROGRAM OF SELLING UNCOMPETITIVE UNITS WOULD RISK A BACKLASH FROM THE UAW BUT IT COULD ALSO LEAD THE UAW TO TRY TO PRESERVE JOBS BY ACCEPTING LOWER WAGES AT NONCOMPETITIVE OPERATIONS THIS IS WHAT THE INTERNATIONAL UNION OF ELECTRICAL WORKERS HAS DONE AT CERTAIN GM PLANTS TO SALVAGE JOBS IUE WORKERS AT THESE PLANTS NOW START AT WAGES AS LOW AS 55 OF THE UAW SCALE AND TAKE AS LONG AS A DOZEN YEARS TO GROW TO PARITY GM OFFICIALS ARGUE THE UAW SHOULD FOLLOW A SIMILAR MODEL TO HELP ITSELF AND HELP GM WE NEED TO HAVE SUBSTANTIAL RELIEF IN A NUMBER OF AREAS GM EXECUTIVE VICE PRESIDENT HARRY J PEARCE SAID IN AN INTERVIEW LAST MONTH WE'VE GOT TO ESTABLISH A NEW RELATIONSHIP WITH THE UNION WE'VE GOT TO UNDERSTAND THAT OUR INTERESTS ARE COINCIDENT 9309170082 930917 MARKETING FEDERAL EXPRESS UPS FACE OFF ON COMPUTERS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL ALL OVER THE COUNTRY POWERSHIPS ARE SQUARING OFF WITH MAXISHIPS IT'S NOT A HIGHTECH NAVAL BATTLE BUT THE CLASH IN THE EXPRESSDELIVERY BUSINESS BETWEEN FEDERAL EXPRESS CORP AND UNITED PARCEL SERVICE OF AMERICA INC THE TWO GIANTS ARE PUSHING THE INDUSTRY'S 20YEAR DUEL BEYOND PRICING AND ADVERTISING INTO ANOTHER ARENATECHNOLOGY THE MOST HIGHPROFILE EXCHANGE INVOLVES THE COMPETING POWERSHIP AND MAXISHIP COMPUTER SYSTEMS THAT PERFORM SIMILAR TASKS STORING ADDRESSES AND SHIPPING DATA PRINTING HANDSOME MAILING LABELS AND HELPING TRACK THE WHEREABOUTS OF PACKAGES FOR ITS PART FEDERAL EXPRESS HAS GIVEN SOME 26500 POWERSHIPS TO BUSINESS CUSTOMERS AT A COST OF SEVERAL THOUSAND DOLLARS APIECE UPS WHICH HAS TRADITIONALLY TRAILED FEDERAL EXPRESS IN TECHNOLOGY IS AGGRESSIVELY PLAYING CATCHUP UPS HAS GIVEN OUT 15000 MAXISHIPS AND PLANS TO PUMP OUT AT LEAST AS MANY MORE IN THE NEXT TWO YEARS ALREADY THE MACHINES HAVE SUCCEEDED IN GENERATING MORE BUSINESS FROM CUSTOMERS AFTER DISNEY STORES INC THE RETAIL UNIT OF WALT DISNEY CO RECEIVED ITS POWERSHIP IT BEGAN SHIPPING 95 OF ITS EXPEDITED PACKAGES THROUGH FEDERAL EXPRESS UP FROM 60 THREE YEARS AGO WITHOUT OFFERING SPECIFICS FEDERAL EXPRESS SAYS THE COMPUTERS HAVE BOOSTED SALES UPS ESTIMATES BUSINESS BALLOONS AT LEAST 20 WHEN A CUSTOMER TAKES A MAXISHIP CUSTOMERS WANT THINGS BEYOND A PACKAGE DELIVERED AT 1030 SAYS FRANK ERBRICK UPS SENIOR VICE PRESIDENT INFORMATION SERVICES THE MORE INFORMATIONINTENSIVE YOUR SERVICE BECOMES THE MORE VALUABLE IT IS TO CUSTOMERS BUT THE NEW MARKETING INITIATIVE HAS ALSO REVEALED A DOWNSIDE ONE OFFERING LESSONS TO OTHER SERVICE COMPANIES SEEKING A COMPETITIVE EDGE BY PACKAGING DATA FOR CLIENTS IN MANY INSTANCES THE EXPRESSDELIVERY COMPANIES HAVE INADVERTENTLY DISAPPOINTED CUSTOMERS FEATURES SUCH AS THE ABILITY TO PINPOINT THE LOCATION OF A PACKAGE IN MIDDELIVERY SOUND IMPRESSIVE BUT MANY SHIPPERS SAY THEY REALLY WANT A SYSTEM THAT CAN TRACK THEIR TOTAL FREIGHT ACTIVITIES AT ALL LOCATIONS AND WITH ALL CARGO CARRIERS FEDERAL EXPRESS AND UPS HAVE YET TO OFFER THAT MOREOVER WHILE THE EQUIPMENT IS PROVIDED FREE THERE CAN BE HIDDEN COSTS SONNY SMITH WHO HEADS AN EXPRESSMAIL CONSULTING FIRM IN ATLANTA FIGURES COMPANIES RELYING ON THE TECHNOFREEBIES SUPPLIED BY ONE COMPANY MAY WASTE TENS OF THOUSANDS OF DOLLARS A YEAR BY NEGLECTING TO SHOP VIGILANTLY FOR BETTER PRICES OR SERVICES FROM RIVAL CARRIERS FREE IS NOT FREE HE SAYS INDEED ONE REASON THAT THE DELIVERY GIANTS ARE PUSHING TECHNOLOGY IS TO FORESTALL COMPARISON SHOPPING AND BACK AWAY FROM SEVERAL YEARS OF BRUTAL PRICING BATTLES UPS HAS BULKED UP ITS TECHNOLOGY STAFF TO 3000 FROM 118 PEOPLE IN 1985 WHILE BOOSTING ITS ANNUAL BUDGET TO 500 MILLION FULLY 12 TIMES THE LEVEL EIGHT YEARS AGO FEDERAL EXPRESS WITH 5000 TECHNOLOGY STAFFERS WON'T DISCUSS BUDGET NUMBERS NOW THE COMPUTER SYSTEMS WHICH FIRST HIT THE MARKET IN BASIC MODELS SEVEN YEARS AGO HAVE BECOME A MAJOR MARKETING THRUST IN MAY FEDERAL EXPRESS STARTED ITS FIRSTEVER POWERSHIP ADVERTISING AIMED AT SMALL BUSINESSES IN FOUR MARKETS THE FEDEXTRAS CAMPAIGN OFFERS THE POWERSHIPS AS WELL AS TRACKING SOFTWARE AND PRIZES SUCH AS PHOTOCOPIERS AND CELLULAR PHONES TO COMPANIES THAT BOOST THEIR FEDERAL EXPRESS USAGE CUSTOMERS CLEARLY DO APPRECIATE SOME OF THE BELLS AND WHISTLES THE COMPUTERS STORE MAILING ADDRESSES AND DASH OFF SHIPPING LABELS ON SNAZZY PRINTERS THEY ALSO PUMP OUT DAILY SHIPPING RECORDS WE USE IT MAINLY TO CREATE LABELS SAYS JOHN MORGAN TRANSPORTATION REPRESENTATIVE AT U S WEST INC IN ENGLEWOOD COLO WHICH SHIPS AS MANY AS 10000 PACKAGES BY AIR EXPRESS EACH WEEK ADDS ROGER KORANDO MANAGER CORPORATE FREIGHT PAYMENT AT EMERSON ELECTRIC CO IN ST LOUIS I NEED POWERSHIP AS A TIMESAVING DEVICE BUT THE VALUE OF THE MOSTHYPED FEATURE PACKAGE TRACKING SEEMS LOST ON MOST CUSTOMERS UPS SAYS CLIENTS BOTHER TO TRACK LESS THAN 1 OF THEIR PACKAGES FEDERAL EXPRESS SAYS A HIGHER PORTION OF ITS CUSTOMERS DO BUT WON'T BE SPECIFIC LANDS' END INC A CATALOG RETAILER THAT SHIPS 12 MILLION PACKAGES A YEAR MAINLY WITH UPS ONLY TRACES SHIPMENTS WORTH 50 OR MORE THAT HAVEN'T ARRIVED EVEN THEN THE COMPANY USUALLY WAITS A WEEK NOBODY GETS THAT EXCITED OVER WHERE THEIR PINPOINT OXFORD SHIRT IS THIS HALF HOUR SAYS PHILLIP SCHAECHER VICE PRESIDENT OF OPERATIONS AT LANDS' END IN DODGEVILLE WIS FOR OTHER SERVICES CUSTOMERS WITH THE NEW COMPUTER SYSTEMS ARE STILL WAITING FOR THEIR SHIP TO COME IN TIMOTHY BOGGS WAREHOUSE SUPERVISOR AT ATLANTABASED RESTAURANT COMPANY CHICKFILA DOES MONTHLY REPORTS AND ANALYSES ON HIS FREIGHT BUDGET HE ANALYZES COSTS FOR SHIPPING BOXES OF PLASTIC SPOONS WHICH SHIPMENTS OF LIGHT BULBS ARE DAMAGED AND HOW MUCH INVENTORY HE'S RECEIVING BUT TO PROCESS THAT INFORMATION MR BOGGS HAS TO HAVE HIS STAFF JUMP THROUGH HOOPS BECAUSE HIS COMPANY'S COMPUTER CAN'T COMMUNICATE WITH HIS UPS MAXISHIP HE HAS TO HAVE TELEMARKETERS IN HIS BASEMENT WAREHOUSE GO THROUGH THE TIMECONSUMING TASK OF RETYPING ALL THE MAXISHIP DATA INTO THE CHICKFILA SYSTEM EVEN A MORE SOPHISTICATED MAXISHIP UNDER DEVELOPMENT WON'T ADDRESS THE PROBLEMS MR BOGGS AND OTHERS HAVE THE NEW MAXISHIP WILL LINK FULLY WITH UPS'S SYSTEM ALLOWING CUSTOMERS TO ORDER SUPPLIES SEND COMPLAINTS TO TOP EXECUTIVES AND HAVE ACCESS TO DETAILED PACKAGE INFORMATION BUT IT STILL WON'T SQUEEZE THAT DATA INTO THE CHICKFILA COMPUTER SYSTEM EMERSON ELECTRONICS' MR KORANDO HAS TO PAY A CONSULTANT TO ANALYZE HIS COMPANY'S SHIPPING BECAUSE FEDERAL EXPRESS'S POWERSHIP CAN'T HANDLE THE TASK FOR EXAMPLE IT WON'T GENERATE INFORMATION THAT HE WANTS ABOUT PACKAGE WEIGHTS CUSTOMER NAMES AND SHIPPING INFORMATION FROM ALL HIS DELIVERY LOCATIONS THE INFORMATION THAT GOES INTO THE POWERSHIP IS VERY LIMITED HE SAYS WILLIAM THOMAS TRAFFIC SUPERVISOR AT THE DISNEY STORES ALSO HAS HAD TROUBLES TRYING TO RETRIEVE AND ANALYZE DATA HE NEEDS FROM HIS POWERSHIP IN THE NEXT COUPLE OF YEARS HE HOPES TO INTERNALIZE HIS COMPANY'S FREIGHT RECORDKEEPING AND STOP RELYING ON THE POWERSHIP FOR IT MR THOMAS TYPICALLY ANALYZES WHICH TOYS BOOKS AND STUFFED ANIMALS ARE BEING SHIPPED TO SPECIFIC MARKETS AND ZIP CODES TASKS CURRENTLY REQUIRING SOMEONE TO PICK THROUGH REAMS OF OTHER DETAILED FEDERAL EXPRESS SHIPPING INFORMATION IT'S JUST SORT OF BURDENSOME TO GO THROUGH ALL THE DATA TO GET WHAT I NEED HE GRIPES FEDERAL EXPRESS AND UPS SAY THEY'RE TRYING TO MAKE THEIR TECHNOLOGY AS RESPONSIVE TO CUSTOMER NEEDS AS THEY CAN AND THEY'RE ABLE TO PROVIDE MORE DETAILED CUSTOMIZED REPORTS UPON REQUEST WE CAN GIVE THEM SO MUCH DETAIL IT WOULD BLOW THEM AWAY SAYS LAURIE TUCKER FEDERAL EXPRESS'S VICE PRESIDENT OF CUSTOMER AUTOMATION AND INVOICING A LOT OF TIMES CUSTOMERS DON'T KNOW WHAT THEY CAN GET SHE SAYS BOTH COMPANIES ACKNOWLEDGE THEIR INABILITY TO PROVIDE INFORMATION ON OTHER CARGO CARRIERS THAT FIGURE INTO THEIR CUSTOMERS' SHIPPING PLANS FEDERAL EXPRESS SAYS IT'S WORKING ON A SYSTEM TO ADDRESS THAT NEED TO BE ANNOUNCED THIS SPRING THOUGH IT WON'T PROVIDE FURTHER DETAILS 9309170081 930917 MONEY FUND ASSETS DECLINE 529 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL 529 BILLION TO 57541 BILLION FROM 58070 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 648 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 107 BILLION TO 38818 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 408 TAXABLE MNEY MARKET FUNDS FELL BY 4564 MILLION TO 30498 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS FELL BY 611 MILLION TO 8320 BILLION ASSETS OF THE 271 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 422 BILLION TO 18723 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEY MARKET FUNDS FELL BY 346 BILLION TO 16599 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL BY 7618 MILLION TO 2124 BILLION 9309170080 930917 NEW FINANCIAL PRODUCTS ARE FOR THOSE WHO HATE LOW RATES BUT LOVE SECURITY BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR INVESTORS WHO DISDAIN THE LOW RATES OF CERTIFICATES OF DEPOSIT BUT WHO CRAVE SECURITY FINANCIAL INSTITUTIONS ARE CREATING EVERMORE VARIATIONS OF A PRODUCT THAT CLAIMS TO MEET BOTH DEMANDS THE ORIGINAL PRODUCT A FEDERALLY INSURED CD THAT LETS INVESTORS PARTICIPATE IN THE PRICE GAINS OF THE STANDARD & POOR'S 500STOCK INDEX WITHOUT THE FEAR OF LOSING PRINCIPAL NOW COME INSTRUMENTS THAT LET INVESTORS PARTICIPATE IN MORE DISCRETE SLICES OF THE STOCK MARKET RECENT OFFERINGS HAVE BEEN TIED TO INDEXES BASED ON THE STOCK PERFORMANCE OF GLOBAL TELECOMMUNICATIONS COMPANIES EUROPEAN COMPANIES AND MIDSIZED AMERICAN COMPANIES AMONG OTHERS ONE OF THE MOST PROLIFIC AND CREATIVE DESIGNERS OF THE NEW SECURITIES IS BANKERS TRUST NEW YORK CORP WHICH HAS CREATED SOME 50 INVESTING INSTRUMENTS IN RECENT MONTHS WHILE THE MAJORITY ARE TIED TO THE S&P 500 EUROPEAN INDEXES ARE INCREASINGLY REQUESTED BY PRIVATE BANKING CLIENTS WE GENERALLY STRUCTURE THEM IN RESPONSE TO WHAT WE SENSE MARKET INTEREST TO BE SAYS A SPOKESMAN FOR BANKERS TRUST ALTHOUGH SIMILAR IN NATURE THE BANKERS TRUST SECURITIES OFFER A WIDE VARIETY OF MATURITY DATES WHILE STEADILY MORE EXOTIC IN APPEARANCE THE INSTRUMENTS HAVE ONE BASIC COMMON ELEMENT AN APPEAL TO CONSERVATIVE INVESTORS WORRIED THAT CONVENTIONAL CDS WON'T YIELD ENOUGH TO TIDE THEM OVER WHEN THEY RETIRE THE LOGIC BEHIND WHAT'S GOING ON IS THAT MR AND MRS AMERICA ARE FINALLY REALIZING THAT THEY'D BETTER GET INTO SOMETHING TIED TO EQUITIES SAYS EMMETT HARTY PRESIDENT OF PARALLAX GROUP INC A STAMFORD CONN SECURITIES' RESEARCH GROUP WHILE MILLIONS OF INVESTORS HAVE PLUNGED INTO MUTUAL FUNDS OVER THE PAST YEAR STILL OTHERS REMAIN WARY THESE SAVERS ARE TARGETED BY THE NEW SECURITIES WHICH SOME ANALYSTS DUB AN EQUITY MUTUAL FUND WITH TRAINING WHEELS BUT THIS DOESN'T MEAN THEY'RE NECESSARILY THE BEST VEHICLE FOR INVESTORS IF THE INDEX PERFORMS WELL INVESTORS ACTUALLY WOULD HAVE EARNED MORE IN A MUTUAL FUND TIED TO AN INDEX REAPING DIVIDENDS AS WELL AS APPRECIATION AND IF THE INDEX PERFORMS POORLY AN OLDFASHIONED CD WOULD HAVE DELIVERED MORE IN INTEREST PAYMENTS IN ADDITION BECAUSE THE INDEXBASED SECURITIES HAVE A FIXED MATURITY DATE INVESTORS MAY BE FORCED TO CASH OUT AT A TIME WHEN THE INDEX HAS FALLEN MERRILL LYNCH & CO EARLY THIS MONTH SOLD 110 MILLION OF NEW INVESTMENTS THAT IT CALLS GLOBAL TELECOMMUNICATIONS PORTFOLIO MARKET INDEX TARGETTERM SECURITIES OR MITTS INVESTORS PAID 10 PER SECURITY THE SECURITY PAYS NO INTEREST INSTEAD ITS FINAL RETURN IN ABOUT FIVE YEARS WILL BE BASED ON A BASKET OF 22 GLOBAL TELECOMMUNICATIONS STOCKS THE PAYOUT WILL BE TIED TO AVERAGE CLOSING PRICES OF THE STOCKS OVER THE LAST 60 TRADING DAYS PRIOR TO MATURITY AT MATURITY OCT 15 1998 THE INVESTOR WILL REALIZE THE PERCENTAGE CHANGE IN THE BASKET'S VALUE BUT IN NO CASE DOES THE INVESTOR RECEIVE LESS THAN 9 BARRING MERRILL'S DEFAULT ON ITS OBLIGATION SO IF THE BASKET IS UP 50 THE SECURITY WILL BE WORTH 15 AT MATURITY IF THE BASKET IS DOWN 5 THE SECURITY IS WORTH 950 IF THE BASKET IS DOWN 10 OR MORE 9 UNLIKE ORIGINAL EQUITYLINKED CDS SOLD BY COMMERCIAL BANKS THE PRINCIPAL INVESTED IN ONE OF MERRILL'S SECURITIES ISN'T FEDERALLY INSURED ALSO UNLIKE COMMERCIAL BANK CDS MERRILL'S SECURITIES ARE TRADED ON THE NEW YORK STOCK EXCHANGE THEY HAVE BEEN TRADING RIGHT AROUND THE 10 OFFERING PRICE MERRILL SOLD THE TELECOMMUNICATIONSLINKED SECURITIES TO RETAIL ACCOUNTS IN ADDITION SINCE JULY 1992 MERRILL HAS SOLD A TOTAL OF 1215 MILLION OF RETAILORIENTED SECURITIES LINKED TO THE S&P 500 IN APRIL IN A DEAL COMANAGED BY SMITH BARNEY HARRIS UPHAM & CO IT SOLD 50 MILLION OF SECURITIES TIED TO THE S&P MIDCAP 400 INDEX NOW THAT INVESTORS UNDERSTAND THE BASIC BENEFITS OF THE PRODUCT THEY WANT TO SEE THOSE BENEFITS APPLIED TO INDEXES OTHER THAN THE S&P 500 SAYS STEVE BODURTHA DIRECTOR OF MERRILL'S GLOBAL EQUITY DERIVATIVES GROUP A 28 MILLION OFFERING BY PAINEWEBBER GROUP INC IN MAY ALSO USED THE MIDCAP 400 INDEX LIKE MERRILL'S PRODUCT THE SECURITY SOLD FOR 10 AT MATURITY ON JUNE 2 2000 THE INVESTOR WILL RECEIVE THE GREATER OF 10 OR 10 PLUS 115 OF THE INDEX APPRECIATION THE FINAL VALUE OF THE INDEX WILL BE DETERMINED FROM AVERAGE CLOSING VALUES OVER THE LAST 10 BUSINESS DAYS BEFORE MATURITY PAINEWEBBER'S SECURITY HAS BEEN TRADING AROUND 950 ON THE AMERICAN STOCK EXCHANGE WE'RE CERTAINLY GOING TO SEE MORE INSTRUMENTS LIKE THIS SAYS BEN KRAUSE THE EXCHANGE'S SENIOR VICE PRESIDENT OF CAPITAL MARKETS 9309170078 930917 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 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 119 DAYS 318 120 TO 149 DAYS 320 150 TO 239 DAYS 323 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 256 THREE MONTHS 271 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 310 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 307 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 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 665 60 DAYS 673 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 661 60 DAYS 671 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309170077 930917 CZECH JOBLESS RATE UP FRANKFURT THE JOBLESS RATE IN THE CZECH REPUBLIC INCREASED TO 3 OF THE WORK FORCE IN AUGUST FROM 28 IN JULY THE STATE NEWS AGENCY CTK REPORTED CITING THE CZECH STATISTICS OFFICE THE STATISTICS OFFICE SAID THE NUMBER OF PEOPLE REGISTERED AT UNEMPLOYMENT OFFICES AROUND THE REPUBLIC AT THE END OF AUGUST AMOUNTED TO 158600 COMPARED WITH 148634 AT THE END OF JULY 9309170076 930917 BUSINESS BRIEF MICHAEL BAKER CORP UNIT WINS 53 MILLION PACT TO BUILD FACILITIES IN ILLINOIS MICHAEL BAKER CORP SAID ITS MELLON STUART CONSTRUCTION INC UNIT WAS AWARDED A 53 MILLION CONTRACT BY THE METROPOLITAN WATER RECLAMATION DISTRICT OF CHICAGO TO BUILD OFFICE SHOP AND WAREHOUSE FACILITIES IN STICKNEY ILL THE COMPANY SAID UNDER TERMS OF THE CONTRACT MELLON STUART WILL PERFORM EXCAVATION OF THE 20ACRE SITE AND WILL BE RESPONSIBLE FOR PAVING AND STRUCTURAL STEEL CONSTRUCTION CONSTRUCTION OF THE HEATING VENTILATION AIR CONDITIONING AND ELECTRICAL SYSTEMS AND SIGNAGE MELLON STUART PROVIDES GENERAL CONSTRUCTION SERVICES AS WELL AS HEAVY AND HIGHWAY CONSTRUCTION SERVICES AND CONSTRUCTION MANAGEMENT MICHAEL BAKER OF PITTSBURGH IS AN ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES CONCERN 9309170075 930917 WORLD STOCK MARKETS JAPANESE MOVES CALL FOR CHANGE IN PORTFOLIOS BY CRAIG FORMAN AND QUENTIN HARDY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WITH JAPAN'S NEW ECONOMIC STIMULUS PACKAGE GETTING A RESOUNDING VOTE OF NOCONFIDENCE FROM THE TOKYO STOCK MARKET IT MAY BE TIME FOR INVESTORS TO RESTRUCTURE THEIR JAPANESE STOCK PORTFOLIOS PRIME MINISTER MORIHIRO HOSOKAWA'S ECONOMIC STIMULUS PACKAGE OF DEREGULATION STEPS AND PUBLIC SPENDING VALUED AT 615 TRILLION YEN 5857 BILLION WASN'T ANNOUNCED UNTIL AFTER THE TOKYO MARKET CLOSED THURSDAY BUT EXTENSIVE NEWS REPORTS PREVIEWING THE PACKAGE CAUSED THE NIKKEI 225STOCK INDEX TO SINK 44564 POINTS OR MORE THAN 21 TO 2050215 ITS SHARPEST ONEDAY FALL SINCE MIDJUNE IN TRADING FRIDAY THE NIKKEI INDEX FELL 9181 POINTS TO CLOSE THE MORNING SESSION AT 2041034 MANY EXPERTS DISMISSED THE PACKAGE AS WOEFULLY INADEQUATE IN ITS ATTEMPTS TO STIMULATE THE ECONOMY THE MEASURES AREN'T ANYTHING NEW SAYS NOBUMITSU KAGAMI EXECUTIVE VICE PRESIDENT OF NOMURA INVESTMENT MANAGEMENT WHICH MANAGES ABOUT 3 TRILLION YEN IN ASSETS BUT OTHERS LOOKING MORE CAREFULLY AT THE MEASURES AIMED AT DEREGULATING MANY ASPECTS OF JAPANESE BUSINESS FOUND REASON TO LIKE THE PACKAGE THEY ARGUE THAT NOW IS THE TIME FOR MONEY MANAGERS AND PRIVATE INVESTORS TO RESTRUCTURE THEIR JAPANESE STOCK EXPOSURE THEIR ADVICE IS TO CUT HOLDINGS IN SUCH JAPANESE ECONOMIC MAINSTAYS AS STEELMAKING PETROCHEMICALS HEAVY INDUSTRY AND SHIPBUILDING AND PUT THAT MONEY TO WORK IN SUCH HIGHERGROWTH RECOVERY STOCKS AS PHARMACEUTICALS DISCOUNT RETAILERS AND CONSUMER ELECTRONICS ISSUES FOR INVESTORS WILLING TO DO THE HOMEWORK TO PICK SELECTED STOCKS THE JAPANESE MARKET STILL OFFERS GOOD VALUE SAYS JOHN ALKIRE PRESIDENT OF MORGAN STANLEY INVESTMENT ADVISORY WE'RE STILL LOOKING FOR THE NIKKEI TO RISE TO 23000 BY YEAREND HE SAYS HE ALSO EXPECTS A SIGNIFICANT DECLINE IN JAPANESE INTEREST RATES AND SUBSTANTIAL BUYING BY CORPORATE INVESTMENT ACCOUNTS EXPERTS ARGUE THAT OVER THE LONG TERM THE STIMULUS PACKAGE MAY HELP THE ECONOMY BY LOWERING THE COST OF IMPORTS AND IMPROVING JAPAN'S NOTORIOUSLY INEFFICIENT DISTRIBUTION SYSTEM BUT FOR THE SHORT TERM THEY SAY PLANS TO AID CONSUMERS ARE UNLIKELY TO DELIVER MUCH OF A BOOST FOR SOME OF THE MARKET'S BIGGEST SECTORS THE MAJOR PROBLEMS AT THESE COMPANIES OVERCAPACITY A HIGH COST STRUCTURE AND HUGE PAYROLLS AREN'T ADDRESSED BY THE GOVERNMENT'S PLANS SOME MONEY MANAGERS HERE SAY EVEN THE BIGGEST OF JAPANESE BLUECHIPS CAN'T POSTPONE THE PAIN INDEFINITELY AND EVENTUALLY MANY WILL HAVE TO TAKE DRASTIC AND IN SOME CASES EXPENSIVE ACTION TO REDUCE COSTS AND CAPACITY I DON'T THINK THERE'S ANY WAY WE CAN GET OUT OF THIS RECESSION WITHOUT ECONOMIC RESTRUCTURING NOMURA'S MR KAGAMI SAYS FOR MONTHS TOKYO INVESTORS HAVE BEEN ANXIOUS ABOUT THE SOARING YEN AND SLUGGISH DOMESTIC ECONOMY THE NIKKEI HAS TRADED WITHIN A 10 RANGE SINCE MAY AS INVESTORS AWAITED A CLEAR INDICATION OF WHERE THE ECONOMY IS HEADING YESTERDAY THE DEREGULATION THEME WAS CLEARLY DRIVING THE MARKET THE UNDERLYING LOGIC OF INVESTORS' STOCK REALLOCATION IS THAT DEREGULATION WILL MUCH MORE QUICKLY BENEFIT THE CONSUMER SECTOR AND OTHER BUSINESSES AT THE PERSONAL END OF THE ECONOMIC CHAIN RATHER THAN THE HEAVY CAPITALGOODS COMPANIES THAT ARE MORE EXPOSED TO THE CYCLICAL DOWNTURN FOR HEAVY INDUSTRY STEEL AND PETROCHEMICALS THERE IS TOO MUCH OVERCAPACITY FOR MUCH OF A RECOVERY SAYS JEFF BAHRENBURG A TOKYOBASED EQUITY STRATEGIST AT MERRILL LYNCH JAPAN MR BAHRENBURG PREFERS JAPAN'S DISCOUNT RETAILERS MERRILL HAS LONG RECOMMENDED AOYAMA TRADING A DISCOUNT RETAILER OF MEN'S SUITS THAT IS RAPIDLY EXPANDING AS JAPANESE CONSUMERS SEEK MORE VALUE FOR THEIR YEN AT MORGAN STANLEY MR ALKIRE IS RECOMMENDING SANKYO A PHARMACEUTICALS MAKER WITH EXTENSIVE INHOUSE RESEARCH AND DEVELOPMENT FACILITIES WHICH RECENTLY FILED A NEW DRUG APPLICATION FOR AN ORAL DIABETES DRUG THE DEREGULATION THEME IS BOOSTING ALL THE PHARMACEUTICALS STOCKS BECAUSE OF HOPES IT WILL ACCELERATE JAPAN'S APPROVAL PROCESS FOR NEW MEDICINES HE ALSO LIKES JAPANESE ELECTRONICS COMPANIES GENERALLY AND FAVORS MATSUSHITA ELECTRIC INDUSTRIAL AND SONY WHICH HE SAYS HAVE BEEN UNDERVALUED BY THE MARKET FOR 10 YEARS BUT THEY'RE A VALUABLE PART OF JAPAN AMONG SMALLER COMPANIES BAKERS MAY BE THE MOST POPULAR BET YAMAZAKI BAKING AND FIRST BAKING WERE AMONG THE FEW GAINERS IN YESTERDAY'S SELLOFF AS INVESTORS BET THAT DEREGULATION OF SUGAR PRICES WILL LEAD TO FATTER PROFIT MARGINS MANY US INVESTORS HOLD JAPANESE STOCKS THROUGH AMERICAN DEPOSITORY RECEIPTS HOWEVER THOUSANDS MORE OWN JAPANESE STOCKS THROUGH PENSION FUND OR RETIREMENT ACCOUNTS WHICH OFTEN TRADE IN THE SMALLER ISSUES THROUGH BROKERS IN THE TOKYO MARKET OTHER MARKET ACTIVITY LONDON SHARE PRICES ROSE HELPED BY A REBOUND IN THE FUTURES MARKET WHILE OTHER EUROPEAN MARKETS WERE MIXED WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11232 DOWN 030 REFLECTING DECREASES IN AMERICAN AND EUROPEAN MARKETS AND A RISE IN ASIA/PACIFIC MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12223 UP 284 OR 24 WITH PLACER DOME OF CANADA POSTING AN 82 GAIN IN ITS LOCAL CURRENCY OIL FIELD EQUIPMENT STOCKS TRAILED AT 11305 DOWN 240 OR 21 WITH SAIPEM ORD OF ITALY SLIDING 49 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX ROSE 145 POINTS TO 30039 THE FT 30 INDEX GAINED 10 TO 23312 VOLUME TOTALED 6686 MILLION SHARES COMPARED WITH 7419 MILLION THE PREVIOUS DAY THE SESSION WAS DEMONSTRABLY DIFFERENT IN THE FUTURES PIT FROM WEDNESDAY WHEN A SELLOFF IN THE SEPTEMBER STOCKINDEX FUTURES CONTRACT RELATED TO ITS EXPIRATION TODAY LED THE CASH MARKET DOWN ALMOST 39 POINTS YESTERDAY THE PRICE OF THE SEPTEMBER CONTRACT ROSE TAKING THE PRESSURE OFF THE CASH MARKET MEANWHILE ECONOMIC DATA BOOSTED SHARES FIGURES ON BRITAIN'S PUBLICSECTOR BORROWING REQUIREMENT FOR AUGUST CAME IN BELOW EXPECTATIONS SUGGESTING THE GOVERNMENT'S BUDGET GAP MAY NOT BE AS WIDE AS EITHER THE MARKET OR THE GOVERNMENT EXPECTS IN FRANKFURT STOCKS EASED IN THIN NERVOUS TRADING THE DAX 30STOCK INDEX OF BLUECHIPS FELL 472 POINTS TO 185567 FEW DEALERS WANTED TO TAKE NEW POSITIONS AHEAD OF TODAY'S EXPIRATION OF SEVERAL KEY FUTURES AND OPTIONS CONTRACTS IN PARIS PRICES EDGED LOWER THE BANK OF FRANCE'S DECISION TO HOLD BENCHMARK INTEREST RATES UNCHANGED CUT SHORT A SMOLDERING RECOVERY IN AMSTERDAM STOCKS ADVANCED IN MODERATE VOLUME RECOVERING FROM A STEEP DECLINE A DAY EARLIER TRADING WAS HEAVY IN SCATTERED STOCKS ESPECIALLY CERTAIN INTERNATIONALLY TRADED COMPANIES IN MILAN SHARES SANK 18 AS THE EFFECTS OF CAPITAL INCREASES AND SPECULATION ABOUT FURTHER RIGHTS ISSUES SHOOK THE MARKET IN ZURICH PRICES ROSE LIFTED BY STRONG INTEREST IN BANKS AND SHARES OF NESTLE THE MARKET'S MOOD WAS ALSO BOOSTED BY A SURGE IN THE DOLLAR DURING THE EUROPEAN AFTERNOON IN STOCKHOLM STOCKS RETREATED DESPITE A RALLY IN THE FINAL HOUR OF TRADING ASIAN AND PACIFIC MARKETS WERE MIXED AS WELL HONG KONG SHARES SLUMPED IN QUIET TRADING ON A LACK OF BUYING INTEREST IN TAIPEI PRICES FELL FOR A FOURTH CONSECUTIVE SESSION TO POST A NEW SEVENMONTH LOW THE LATEST DECLINE WAS BECAUSE OF CONTINUED PESSIMISM AMONG PARTICIPANTS WHO PLAN A SEPT 24 PROTEST TO DEMAND TAIWAN GOVERNMENT MEASURES TO BOOST THE MARKET IN WELLINGTON STOCKS JUMPED 1 IN BUSY TRADING LED BY ADVANCES IN A FEW BLUECHIPS IN SEOUL EQUITIES SLID FOR A THIRD STRAIGHT DAY AMID CONTINUED RUMORS OF BANKRUPTCIES AMONG CORPORATE DEVELOPMENTS IN LONDON DIXONS SURGED 27 PENCE OR 12 TO 260 PENCE 401 THE ELECTRONICS RETAILER AGREED TO SELL SILO ITS UNPROFITABLE US CHAIN TO FRETTER OF LINOVIA MICH FOR FRETTER SHARES VALUED AT 50 MILLION IN MILAN ITALMOBILIARE FELL 1700 LIRE TO 41300 LIRE 2680 THE CONSTRUCTION COMPANY'S BOARD APPROVED A COMPLEX CAPITAL INCREASE TOTALING 260 BILLION LIRE 1687 MILLION 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 9309170074 930917 BUSINESS BRIEF AMOSKEAG CO SALE OF SHARES IN RAILROAD FOR 288 MILLION IS PLANNED AMOSKEAG CO AND BAR ACQUISITION CO SAID THEY SIGNED A DEFINITIVE AGREEMENT IN WHICH AMOSKEAG WILL SELL ALL ITS SHARES IN THE BANGOR & AROOSTOOK RAILROAD TO BAR BAR IS A NEW GREENWICH CONN COMPANY CREATED FOR THE PURPOSE OF THE ACQUISITION BY IRONHORSE VENTURES INC AND W WALLACE MCDOWELL JR THE PURCHASE PRICE IS 288 MILLION THE COMPANIES SAID THE PURCHASE IS SUBJECT TO FINANCING AND OTHER CONDITIONS AND IS EXPECTED TO CLOSE BY THE END OF THIS YEAR AS PREVIOUSLY REPORTED BOSTONBASED AMOSKEAG AND FIELDCREST CANNON INC HAVE SIGNED A DEFINITIVE AGREEMENT THROUGH WHICH A UNIT OF FIELDCREST MADE A TENDER OFFER FOR ALL OUTSTANDING 34 MILLION SHARES OF AMOSKEAG AT 40 A SHARE TO BE FOLLOWED BY A MERGER IN WHICH THE REMAINING SHAREHOLDERS OF AMOSKEAG WILL RECEIVE THE SAME PRICE 9309170073 930917 EUROCLEAR TO SET UP BRIDGE' TO CLEAR TRADES BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE WORLD'S TWO LARGEST INTERNATIONAL CLEARING AND SETTLEMENT FIRMS ARE SET TO OPEN A BRIDGE BETWEEN THEM THAT SHOULD SHARPLY REDUCE THE TIME IT TAKES FOR STOCK AND BOND TRANSFERS TO OCCUR CEDEL OWNED BY A CONSORTIUM OF EUROPEAN BANKS AND EUROCLEAR OWNED BY MORGAN GUARANTY TRUST CO OF NEW YORK OPERATE COMPETING SYSTEMS THAT UNTIL THIS WEEKEND CLEAR TRADES AT DIFFERENT TIMES OF THE DAY CEDEL CHIEF EXECUTIVE ANDRE LUSSI SAID THE AGREEMENT SHOULD ALLOW FOR FIRMS TRADING IN SECURITIES ACROSS BORDERS TO BETTER HANDLE THEIR MANAGEMENT POSITIONS WITH TWO FIRMS COMPETING AGAINST EACH OTHER BUT LINKED FOR USERS THERE IS GREATER LIQUIDITY AND FEWER FAILURES BETWEEN TRADES MR LUSSI SAID THIS CAME ABOUT BECAUSE CUSTOMERS DEMANDED A MORE EFFICIENT SYSTEM IT'S THE FIRST AND POSSIBLY MOST IMPORTANT STEP TO A CONTINUOUS INTERNATIONAL SETTLEMENT SYSTEM SAID JOHN OLDS EUROCLEAR'S EXECUTIVE VICE PRESIDENT MR OLDS LIKENED THE NEW AGREEMENT TO ADDING ANOTHER DECK TO AN OLDER BRIDGE SO THAT TRAFFIC FLOWS MORE FREELY LUXEMBOURGBASED CEDEL THE SMALLER OF THE TWO AGENCIES HAS CLEARED TRADES DURING THE EUROPEAN BUSINESS DAY WHILE EUROCLEAR HAS CLEARED ITS TRANSACTIONS OVERNIGHT THIS HAS MEANT CEDEL HAS HAD TO SUBSIDIZE CLIENTS WHO DO TRADES WITH EUROCLEAR CUSTOMERS BECAUSE OF THE INTEREST LOST DUE TO THE SETTLEMENT DELAY THE NEW BRIDGE IS DUE TO GO LIVE OVER THE WEEKEND THE SUBSIDY HAS COST CEDEL BETWEEN 60 MILLION AND 80 MILLION A YEAR MR LUSSI SAID 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 9309170072 930917 SENS DECONCINI AND DURENBERGER TO RETIRE IN YEAR BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO SENATORS CRIPPLED BY SCANDAL ARIZONA DEMOCRAT DENNIS DECONCINI AND MINNESOTA REPUBLICAN DAVID DURENBERGER WILL RETIRE AFTER NEXT YEAR RATHER THAN RUN UPHILL RACES FOR REELECTION THEIR ANNOUNCEMENTS YESTERDAY DON'T CHANGE THE OVERALL OUTLOOK FOR THE 1994 SENATE RACES WHICH HAVE REPUBLICANS BATTLING THE ODDS TO END DEMOCRATS' MAJORITY CONTROL BOTH SENATORS ARE SO WOUNDED BY THEIR ETHICS SCRAPES THAT POLITICAL HANDICAPPERS HAD ALL BUT WRITTEN OFF THEIR CHANCES FOR SUCCESS AND EACH POLITICAL PARTY IS VIEWING EACH DEPARTURE AS LESS OF A SETBACK THAN AS AN OPPORTUNITY TO RUN A FRESH CANDIDATE IN EACH CASE IT'S THE OPPOSITION PARTY THAT'S DISAPPOINTED MR DECONCINI AND MR DURENBERGER BOTH IN THEIR THIRD TERM HAVE BEEN FREQUENT PARTY MAVERICKS SEN DECONCINI 56 WHO THIS YEAR BEGAN HEADING THE SENATE INTELLIGENCE COMMITTEE IS A CONSERVATIVE BUSINESSORIENTED DEMOCRAT WHO HAS BEEN AN UNPREDICTABLE SWING VOTE ON BUDGET ISSUES AND JUDICIAL NOMINATIONS HE BROKE WITH HIS PARTY TO SUPPORT JUSTICE CLARENCE THOMAS FOR THE SUPREME COURT AND JUST LAST MONTH SWITCHED FROM THE OPPOSITION TO PROVIDE THE CRITICAL VOTE FOR PRESIDENT CLINTON'S BUDGET AND TAX PROGRAM THE ARIZONAN WAS REBUKED BY THE SENATE IN 1991 FOR HIS ROLE AS ONE OF THE KEATING FIVE A GROUP OF SENATORS WHO PRESSED FEDERAL REGULATORS ON BEHALF OF THRIFT OWNER CHARLES KEATING A FINANCIAL SUPPORTER WHO ULTIMATELY WAS CONVICTED OF FRAUD THOUGH LESS SERIOUS HE WAS ALSO EMBARRASSED RECENTLY BY A REPORT PUBLISHED IN THE WALL STREET JOURNAL REGARDING HIS FAVORABLE TREATMENT OF A FORMER ARIZONA CONGRESSMAN IN CONNECTION WITH FEDERAL PROCUREMENT RULES GOVERNING PURCHASES OF TONER CARTRIDGES FOR LASER PRINTERS MR DECONCINI DENIED IT WAS A POLITICAL DEAL TO WIN SUPPORT AT HOME BUT HE HAS SINCE PROPOSED REVISIONS THAT WOULD MAKE THE LAW LESS SELECTIVE IN FAVOR OF THE FORMER CONGRESSMAN MR DURENBERGER 59 IS ONE OF A DECLINING NUMBER OF GOP SENATE MODERATES FROM HIS SEATS ON THE FINANCE LABOR AND ENVIRONMENT COMMITTEES HE HAS FREQUENTLY WORKED WITH DEMOCRATS ON SOCIAL ISSUES DESPITE HIS PROBLEMS AS AN EXPERT ON HEALTH ISSUES HE'S EXPECTED TO PLAY A ROLE IN THE DEBATE OVER MR CLINTON'S HEALTHCARE PROPOSAL THE SENATE FORMALLY DENOUNCED MR DURENBERGER IN 1990 FOR TAKING REIMBURSEMENTS FROM THE SENATE FOR HIS STAYS IN A MINNEAPOLIS CONDOMINIUM THAT HE ACTUALLY OWNED HE FACES TRIAL IN JANUARY WITH TWO ASSOCIATES ON RELATED FEDERAL CHARGES SEPARATELY A PATERNITY SUIT AGAINST HIM WAS DISMISSED LAST MONTH AFTER TESTS PROVED HE WASN'T THE FATHER OF THE PLAINTIFF'S CHILD IN ARIZONA AND MINNESOTA FIELDS OF CANDIDATES HAD ALREADY BEEN TAKING SHAPE ARIZONA SECRETARY OF STATE DICK MAHONEY WAS PREPARING TO CHALLENGE MR DECONCINI IN THE DEMOCRATIC PRIMARY NOW WITH THE SENATOR'S RETIREMENT OTHERS ARE EXPECTED TO ENTER THE FRAY MR DECONCINI TOOK A SHOT AT MR MAHONEY IN HIS PHOENIX NEWS CONFERENCE YESTERDAY AND SAID HE COULDN'T VOTE FOR HIM THE GOP PARTY ESTABLISHMENT MEANWHILE IS TRYING TO UNITE AROUND REP JON KYL IN HOPES OF AVOIDING A DIVISIVE PARTY PRIMARY IN MINNESOTA REP JIM RAMSTAD FORMER REP VIN WEBER AND FORMER SEN RUDY BOSCHWITZ ARE NAMED AMONG POTENTIAL GOP CANDIDATES A NUMBER OF CURRENT AND FORMER DEMOCRATIC STATE OFFICIALS ARE MENTIONED INCLUDING TOM BERG LINDA BERGLIN AND ANN WYNIA 9309170071 930917 BUSINESS BRIEF FEDERALMOGUL CORP VEHICLE PARTS CONCERN TO BUY SPX DIVISION FOR 150 MILLION FEDERALMOGUL CORP OF SOUTHFIELD MICH SAID IT HAS SIGNED AN AGREEMENT WITH SPX CORP TO ACQUIRE ITS SEALED POWER REPLACEMENT DIVISION FOR ABOUT 150 MILLION FEDERALMOGUL AND SPX ALSO ENTERED INTO A LONGTERM TRADEMARK AGREEMENT MAKING FEDERALMOGUL THE EXCLUSIVE DISTRIBUTOR OF ENGINE AND CHASSIS PARTS SOLD UNDER THE SEALED POWER AND SPEEDPRO BRAND NAMES IN NORTH AMERICA SEALED POWER REPLACEMENT IS A DISTRIBUTOR OF ENGINE AND CHASSIS COMPONENTS TO THE NORTH AMERICAN AUTOMOTIVE AFTERMARKET WITH ANNUAL SALES OF MORE THAN 163 MILLION AND ABOUT 530 EMPLOYEES FEDERALMOGUL PRODUCES AND DISTRIBUTES PARTS FOR CARS AND TRUCKS AND FARM AND CONSTRUCTION VEHICLES THE AGREEMENT IS EXPECTED TO CLOSE BY OCT 31 SUBJECT TO REGULATORY APPROVAL 9309170070 930917 BUSINESS BRIEF SPROUSEREITZ STORES INC FISCAL 2NDPERIOD LOSS GREW ON DECLINE IN SALES OF 15 SPROUSEREITZ STORES INC CITING AN 82 MILLION CHARGE RELATED TO STORE CLOSURES REPORTED A WIDER NET LOSS FOR ITS FISCAL SECOND QUARTER ON A 15 DROP IN SALES THE PORTLAND ORE RETAILER REPORTED A NET LOSS OF 113 MILLION OR 788 A SHARE FOR THE QUARTER ENDED JULY 27 COMPARED WITH A NET LOSS OF 19 MILLION OR 131 A SHARE THE YEAR EARLIER SALES FELL TO 338 MILLION FROM 399 MILLION THE RESULTS INCLUDED AN 82 MILLION CHARGE RELATED TO THE COMPANY'S DECISION TO CLOSE 73 STORES THE BIGGER NET LOSS WAS ALSO DUE IN PART TO LOWER GROSS MARGINS THE COMPANY SAID SPROUSE SAID EARLIER THIS MONTH THAT IT REACHED AN AGREEMENT WITH ITS MAJOR CREDITORS FOR THE DISPOSITION OR SALE OF ALL ITS ASSETS 9309170069 930917 GOLDSTAR'S FIRSTHALF NET ROSE FIVEFOLD ELECTRONICS FIRM STEPS FROM SHADOW OF LATE80S WOES BY KIM SOOMI SPECIAL TO THE WALL STREET JOURNAL SEOUL AFTER WEATHERING TROUBLES GALORE IN THE LATE 1980S SOUTH KOREAN ELECTRONICS GIANT GOLDSTAR CO HAS IMPROVED LABOR RELATIONS TIGHTENED QUALITY CONTROL AND EMPHASIZED PRODUCTION OF LARGER HIGHER VALUE CONSUMER PRODUCTS SIGNS THAT THE NEW STRATEGY IS BEARING FRUIT EMERGED IN THE FIRST HALF GOLDSTAR SAW PROFIT JUMP MORE THAN FIVEFOLD DESPITE A MORE MODEST 94 RISE IN SALES IN THE LATE 1980S LABOR PROBLEMS AND A MASSSALES STRATEGY PRECIPITATED A 1989 LOSS OF 414 BILLION WON 512 MILLION EXCLUDING EXTRAORDINARY ITEMS THE COMPANY'S FIRST IN ITS 30YEAR HISTORY GOLDSTAR OFFICIALS CITE FIRSTHALF PERFORMANCE AS EVIDENCE THE COMPANY HAS REEMERGED GOLDSTAR IS BOOSTING OUTPUT OF SUCH PRODUCTS AS REFRIGERATORS WASHING MACHINES AND LARGER TELEVISIONS ITS WORK FORCE HAS BEEN CUT 32 TO 30000 IN 1992 FROM 31000 AND THE COMPANY PLANS TO MAINTAIN THAT LEVEL DESPITE AN ANTICIPATED INCREASE IN SALES IN COMING YEARS MEANWHILE ITS RATIO OF DEFECTIVE PRODUCTS DECLINED TO AN AVERAGE OF 2 OF TOTAL PRODUCTION BY THE END OF JUNE FROM AS HIGH AS 10 IN 1991 THE COMPANY'S GOAL IS TO REDUCE THE RATIO TO 1 PARTLY AS A RESULT OF THESE CHANGES PROFIT JUMPED TO 303 BILLION WON IN THE FIRST HALF FROM A YEAREARLIER 56 BILLION WON RECURRING PROFIT A MEASURE THAT EXCLUDES SPECIAL ITEMS MORE THAN DOUBLED TO 59 BILLION WON FROM A YEAREARLIER 217 BILLION WON WHILE SALES ROSE 96 TO 205 TRILLION WON 253 BILLION FROM 187 TRILLION WON FOR THE YEAR GOLDSTAR HAS HIGH ASPIRATIONS NET EARNINGS SHOULD FAR EXCEED THE EARLIER PROJECTION OF 40 BILLION WON BY THE END OF THIS YEAR GIVEN THE CURRENT PACE SAYS CHUN SEUNGHO A GOLDSTAR MANAGER GOLDSTAR IS PART OF THE HUGE LUCKYGOLDSTAR GROUP A MAJOR SOUTH KOREAN CONGLOMERATE REFLECTING THE PROFIT RECOVERY GOLDSTAR'S SHARE PRICE HAS PERFORMED WELL THIS YEAR ON SEOUL'S STOCK EXCHANGE SHARES CLOSED THURSDAY AT 15500 WON 1916 UP 21 FROM 12800 WON AT THE START OF THE YEAR BAN YOUNGWON AN ANALYST AT SSANGYONG RESEARCH INSTITUTE A UNIT OF SSANGYONG INVESTMENT & SECURITIES CO SAYS HE RECOMMENDS GOLDSTAR SHARES CONTENDING THEY'RE UNLIKELY TO EXPERIENCE THE VOLATILITY OF OTHER STOCKS ON THE SEOUL BOURSE HE'S PARTICULARLY IMPRESSED BY THE COMPANY'S RECENT DEVELOPMENT OF NEW PRODUCTS THAT SELL WELL BOTH DOMESTICALLY AND OVERSEAS BUT NOT ALL ANALYSTS ARE SO IMPRESSED LEE NAMUH AN ANALYST AT JARDINE FLEMING SECURITIES PREDICTS THE COMPANY'S PROFIT WILL SLOW IN THE SECOND HALF HE SAYS FIRSTHALF NUMBERS ROSE MAINLY BECAUSE OF DEPRESSED RESULTS IN THE YEAREARLIER PERIOD IN WHICH THE COMPANY WAS SUFFERING ILL EFFECTS OF LABOR AND MANAGEMENT TROUBLES AT ITS SISTER COMPANY GOLDSTAR PARTS CO MR LEE SAYS A SECONDHALF SLOWDOWN WILL KEEP GOLDSTAR'S PROFIT FOR THE YEAR AROUND 50 BILLION WON HE SEES TOTAL SALES ADVANCING 10 TO 417 TRILLION WON FOR THE YEAR FROM 379 TRILLION WON IN 1992 BELOW GOLDSTAR'S FORECAST OF A 19 IMPROVEMENT IN SALES WORLD MARKETS FOR CONSUMER PRODUCTS SUCH AS KITCHEN EQUIPMENT AND TELEVISION SETS HAVE BEEN SLUGGISH LATELY AND SUCH ITEMS MAKE UP 90 OF GOLDSTAR'S TOTAL SALES THE BALANCE OF ITS BUSINESS COMES FROM COMPUTERS AND FACTORYAUTOMATION EQUIPMENT DESPITE RELATIVELY MODEST SALES GROWTH GOLDSTAR HAS MANAGED TO BOOST PROFIT IT HAS DONE SO IN PART BY CUTTING COSTS AND IN PART BY REDUCING INTEREST PAYMENTS AS INTEREST RATES IN GENERAL DECLINE IN SOUTH KOREA THE COMPANY HAS LAID OFF WORKERS SOLD UNPROFITABLE PRODUCT LINES SUCH AS CAMERAS LENSES AND PHOTOCOPIERS AND CUT SUBSIDIES TO ITS SALES AGENTS MANY SOUTH KOREAN COMPANIES BOOST SALES BY FORCING THEIR AGENTS TO TAKE ON MORE PRODUCTS THAN THEY CAN POSSIBLY SELL THEY THEN COMPENSATE THE AGENTS WITH SUBSIDIES GOLDSTAR HAS ALSO RECOVERED FROM 1989'S FOURMONTH LABOR DISPUTE THE LONGEST IN THE COMPANY'S HISTORY WHICH PUSHED UP WAGES IN SUBSEQUENT YEARS WORKER RELATIONS HAVE IMPROVED SUBSTANTIALLY AND UNION LEADERS IN JUNE TOOK TO THE STREETS TO DEMONSTRATE THEIR SUPPORT FOR THE COMPANY THIS AT A TIME OF TROUBLED LABOR RELATIONS AT OTHER MAJOR KOREAN FIRMS GOLDSTAR HAS SUFFERED IN THE DOMESTIC MARKET AS HAVE OTHER CONSUMERPRODUCTS MANUFACTURERS FROM SLUGGISH DEMAND AT A TIME OF SLOW ECONOMIC GROWTH DOMESTIC SALES ROSE A PUNY 28 IN THE FIRST HALF TO 955 BILLION WON FROM A YEAREARLIER 9289 BILLION WON BUT GOLDSTAR IS DOING WELL IN EXPORT MARKETS TOTAL EXPORTS ROSE 16 TO 109 TRILLION WON FROM A YEAREARLIER 9422 BILLION WON ACCOUNTING FOR 53 OF TOTAL SALES IN THE MORE RECENT HALF GOLDSTAR'S EXPORTS FIRST OUTPACED DOMESTIC SALES IN 1991 THE COMPANY NOW HAS PRODUCTION FACILITIES IN 10 FOREIGN COUNTRIES MAKING TELEVISIONS IN MEXICO MICROWAVE OVENS IN BRITAIN WASHING MACHINES IN THE PHILIPPINES AND REFRIGERATORS IN ITALY 9309170068 930917 MARKETING & MEDIA KING WORK TO BE OFFERED ONLY ON INTERNET NETWORK BOSTON STEPHEN KING'S LATEST WORK WILL BE PUBLISHED SUNDAY BUT NOT ON PAPER A NEW SHORT STORY PART OF A COLLECTION DUE NEXT MONTH FROM VIKING WILL BE OFFERED ONLY ON THE INTERNET COMPUTER NETWORK IT IS VIKING'S FIRST FORAY INTO THE BURGEONING WORLD OF ONLINE NETWORKS WE THINK IT WILL BE A GREAT WAY TO REACH NEW READERS SAYS JULIE HANSEN ELECTRONIC PUBLISHING DIRECTOR AT THE UNIT OF PENGUIN BOOKS WHICH IS OWNED BY PEARSON PLC OF THE UK THE KING STORY UMNEY'S LAST CASE WILL BE OFFERED OVER THE INTERNET THROUGH THE ONLINE BOOKSTORE A SERVICE OF EDITORIAL INC IN ROCKPORT MASS COMPUTERSAVVY READERS CAN REACH THE BOOKSTORE BY SENDING AN ELECTRONICMAIL MESSAGE TO OBS@EDITORIALCOM THE COST IS 5 AN HOUR TO BROWSE THE KING STORY OR ANY OTHER BOOKSTORE OFFERING OR 5 TO DOWNLOAD THE COMPLETE TEXT OF THE 25PAGE SHORT STORY THE STORY FROM THE FORTHCOMING NIGHTMARES AND DREAMSCAPES COLLECTION SEEMS PARTICULARLY APT IT'S A PASTICHE ABOUT A HARDBOILED 1940S DETECTIVE WHOSE AUTHOR SUDDENLY WRITES HIMSELF INTO HIS FICTION TRADING PLACES WITH THE PROTAGONIST THROUGH HIS COMPUTER 9309170067 930917 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH INCREASE IN RATES IS PLANNED FOR VARIETY OF OVERSEAS CALLS AMERICAN TELEPHONE & TELEGRAPH CO SAID IT IS RAISING RATES ON A VARIETY OF OVERSEAS LONGDISTANCE CALLS PRICING CHANGES THAT WILL RAISE ABOUT 107 MILLION ANNUALLY IN ADDITIONAL REVENUE AT&T SAID THE MOVE REFLECTS HIGHER SERVICE COSTS UNDER THE PLAN FILED WITH THE FEDERAL COMMUNICATIONS COMMISSION AT&T WANTS PERMISSION TO BOOST PRICES BY AN AVERAGE OF 5 ON DIRECTDIALED INTERNATIONAL CALLS PLACED DURING ALL RATE PERIODS FROM THE US MAINLAND TO 79 COUNTRIES PRICES FOR INTERNATIONAL CALLS MADE WITH A CALLING CARD AND OPERATORASSISTED CALLS TO 56 COUNTRIES WOULD RISE AN AVERAGE OF 6 AT&T SAID THE SERVICE CHARGE FOR CALLS BILLED TO A THIRD NUMBER ALSO WOULD INCREASE 6 OR SIX CENTS TO 2 AT&T SAID AT&T SAID IT PLANNED TO INCREASE RATES ON DIRECTDIALED INTERSTATE CALLS BUT THAT THESE WOULD RISE LESS THAN 1 AND ONLY WEEKDAY CALLS IN CERTAIN DISTANCEBASED MILEAGE BANDS WOULD BE AFFECTED AT&T SAID THE RATE INCREASES WOULD TAKE EFFECT SEPT 29 PENDING FCC APPROVAL 9309170066 930917 SMALL STOCK FOCUS STOCKS POST SMALL GAIN AS THIN TRADING FOLLOWS LEAD OF WEAK BOND MARKET BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALL COMPANY STOCKS MANAGED TO POST A SMALL GAIN AFTER SPENDING MUCH OF THE TRADING SESSION FOLLOWING THE LEAD OF A WEAK BOND MARKET THE RUSSELL 2000 INDEX ENDED THE SESSION AT 24568 A GAIN OF 036 POINT OR 015 THE NASDAQ COMPOSITE INDEX GAINED 025 POINT OR 003 TO END AT 73980 ADVANCERS LED DECLINERS 1374 TO 1330 A NUMBER OF MARKET PLAYERS WERE OUT FOR THE ROSH HASHANA HOLIDAY THINNING NASDAQ NATIONAL MARKET VOLUME TO 185596800 SHARES COMPARED WITH 240587600 SHARES WEDNESDAY MARKET OBSERVERS SAID TRADING WAS QUIET AND DIRECTIONLESS WITH PROFITTAKING IN SOME AREAS AND IN OTHERS SHORTCOVERING A TRADING STRATEGY THAT IS USED AS A BET THAT A STOCK'S PRICE WILL FALL SOME OF THE TRADING ACTIVITY WAS THE RESULT OF THOSE JOCKEYING FOR POSITION IN ANTICIPATION OF TODAY'S TRIPLEWITCHING ACTIVITY SAID PATRICK DAVIS MANAGER OF OTC TRADING AT SALOMON BROTHERS TRIPLEWITCHING IS THE QUARTERLY EXPIRATION OF STOCKINDEX FUTURES AND OPTIONS AND OPTIONS ON INDIVIDUAL STOCKS THE BROADER MARKETS ENDED MODESTLY LOWER THE DOW JONES INDUSTRIAL AVERAGE LOST 280 POINTS OR 008 TO 363085 THE NEW YORK STOCK EXCHANGE COMPOSITE DIPPED 073 OR 029 TO END AT 25494 SMALL STOCKS HAD FOLLOWED THE WEAKNESS IN THE BOND MARKET FOR MUCH OF YESTERDAY'S SESSION BEFORE PUSHING AHEAD TO A SMALL GAIN LONGTERM GOVERNMENT SECURITIES SLID MORE THAN 3/4 POINT LIFTING THE YIELD ON THE 30YEAR TREASURY BACK THROUGH THE 6 MARK TO 603 HIGHER BOND YIELDS MAKE POTENTIAL RETURNS IN THE STOCK MARKET LESS APPETIZING MANY MARKET PLAYERS SAID THEY REMAIN BULLISH ABOUT SMALLER STOCKS HOWEVER I AM STILL A BUYER OF THIS MARKET THIS IS THE MOST OPPORTUNE TIME TO BE INVESTING IN THESE GROWTH STOCKS SAID MICHAEL DICARLO MANAGER OF THE JOHN HANCOCK SPECIAL EQUITIES FUND ADDING THAT HE THINKS SMALL COMPANY STOCKS ARE BETTER ABLE THAN BLUE CHIP COMPANIES TO CONTINUE GROWING IN A SLUGGISH ECONOMY MANY SECTORS ENDED MIXED AMONG CASINO STOCKS HOLLYWOOD CASINO LOST 1/4 TO 13 3/4 CASINO MAGIC DIPPED 1/2 TO 15 3/4 PRESIDENT RIVERBOAT ROSE 1/2 TO 36 1/4 TECHNOLOGY ISSUES ALSO WERE MIXED AFTER WEDNESDAY'S REBOUND SUN MICROSYSTEMS LOST 1 3/4 TO 24 7/8 TSENG LABS DIPPED 3/8 TO 12 KOMAG LOST 3/8 TO 15 7/8 CRAY COMPUTER GAINED 1/2 TO 3 7/8 NETFRAME SYSTEMS CLIMBED 1 1/2 TO 16 1/2 QVC NETWORK SLUMPED 2 1/4 TO 60 1/2 THE WALL STREET JOURNAL REPORTED TODAY THAT QVC AND ITS CHAIRMAN BARRY DILLER MIGHT BE WEIGHING A RIVAL BID TO VIACOM INC'S PROPOSAL TO ACQUIRE PARAMOUNT COMMUNICATIONS BAILEY CORP GAINED 1 3/4 TO 12 7/8 MCDONALD & CO ANALYST DAVID GARRITY INITIATED COVERAGE OF THE AUTOMOTIVE PARTS MAKER WITH AN AGGRESSIVE BUY RECOMMENDATION THE ANALYST CITED FORD MOTOR'S TENTATIVE CONTRACT WITH THE UNITED AUTO WORKERS UNION A STRIKE WOULD HAVE HURT BAILEY'S BUSINESS REHABCLINICS IN KING OF PRUSSIA PA CLIMBED 1 TO 20 THE COMPANY SAID IT ACQUIRED PAT CROCE'S SPORTS PHYSICAL THERAPISTS AN OUTPATIENT PHYSICAL THERAPY PRACTICE WITH REVENUE IN EXCESS OF 25 MILLION A YEAR TERMS OF THE AGREEMENT WEREN'T DISCLOSED SPORTS PHYSICAL THERAPISTS IN BRYN MAWR PA OWNS OR MANAGES 40 CLINICS IN 11 STATES 9309170064 930917 BUSINESS BRIEF SHELL CANADA LTD TWO GASOLINE RETAILERS IN CANADA ARE ACQUIRED SHELL CANADA LTD CALGARY ALBERTA SAID IT ACQUIRED TWO UNPROFITABLE CANADIAN GASOLINE RETAILERS IN RETURN FOR ASSUMING THEIR DEBTS THE CALGARY PETROLEUM COMPANY 782OWNED BY ROYAL DUTCH/SHELL GROUP SAID IT ACQUIRED PAY LESS GAS CO AND CANADIAN TURBO INC FROM CLOSELY HELD NORSTAR CAPITAL INC VICTORIA BRITISH COLUMBIA IT SAID THAT AS A RESULT IT ACQUIRED ASSETS VALUED AT ROUGHLY 300 MILLION CANADIAN DOLLARS 2288 MILLION AND ASSUMED A SIMILAR AMOUNT OF DEBT A SHELL SPOKESWOMAN SAID THAT SHELL ALSO AGREED TO PAY AN UNDISCLOSED AMOUNT OF CASH TO NORSTAR SHE SAID THE CASH SUM WASN'T MATERIAL TO THE TRANSACTION THE SHELL SPOKESWOMAN SAID COMBINED PAY LESS AND TURBO OPERATING LOSSES HAVE RECENTLY RUN BETWEEN C4 MILLION AND C5 MILLION A MONTH SHELL PRESIDENT AND CHIEF EXECUTIVE OFFICER CHUCK WILSON SAID LAST MONTH THAT SHELL WANTED TO ACQUIRE THE COMPANIES TO PROTECT LONGTERM SUPPLY AGREEMENTS 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 9309170063 930917 BUSINESS BRIEF O'BRIEN ENVIRONMENTAL ENERGY INC LOSS OF AT LEAST 15 MILLION IS EXPECTED FOR FISCAL YEAR O'BRIEN ENVIRONMENTAL ENERGY INC SAID IT WILL REPORT A LOSS OF 15 MILLION TO 20 MILLION FOR THE FISCAL YEAR ENDED JUNE 30 THE PHILADELPHIA COMPANY SAID ABOUT 70 OF THE LOSS WOULD BE RELATED TO INCOMETAX ACCOUNTING ADJUSTMENTS AND RESERVES FOR INSURANCE RECEIVABLES RELATED TO A PLANT FIRE LAST YEAR THE COMPANY SAID IT ALSO SUFFERED HIGHER FUEL COSTS AND HAD SUBSTANTIAL NONRECURRING LEGAL COSTS THE COMPANY WHICH DEVELOPS CONGENERATION AND WATERHEAT RECOVERY PROJECTS TO PRODUCE ELECTRICITY AND THERMAL ENERGY FOR SALE IS IN LITIGATION WITH A CONTRACTOR OVER DELAYS IN THE DESIGN AND CONSTRUCTION OF COGENERATION PLANTS O'BRIEN SHARES DIDN'T TRADE YESTERDAY ON THE AMERICAN STOCK EXCHANGE AFTER 21 MILLION SHARES TRADED WEDNESDAY CHAIRMAN FRANK L O'BRIEN CALLED THE TRADE A LARGE INSTITUTIONAL BLOCK SALE WHICH WAS NOT BY AN INSIDER MR O'BRIEN OWNS 100 OF THE COMPANY'S CLASS B SHARES AND HOLDS ABOUT 70 OF VOTING CONTROL IN THE LAST FISCAL YEAR O'BRIEN REPORTED NET INCOME OF 33 MILLION OR 22 CENTS A SHARE ON 1001 MILLION IN REVENUE 9309170062 930917 WORKPLACE MORE WOMEN GET MAMMOGRAMS AT WORK BY ADRIENNE PETTY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN ZENECA INC OPENED A MAMMOGRAPHY SCREENING CENTER AT ITS WILMINGTON DEL OFFICE SHIRLEY WEITZEL NO LONGER HAD A REASON TO PUT OFF GETTING A BREAST EXAM IT'S RIGHT HERE THE 44YEAROLD DIVERSITY COORDINATOR SAID TO HERSELF WHAT'S YOUR EXCUSE THE CENTER MAY HAVE SAVED HER LIFE HER SECOND MAMMOGRAM REVEALED A LUMP AND A BIOPSY SHOWED THAT IT WAS MALIGNANT BECAUSE OF EARLY DETECTION SHE WAS ABLE TO HAVE SURGERY BEFORE THE CANCER SPREAD IN RETROSPECT I GUESS I WOULD HAVE HAD ONE BUT I KNOW THAT I MIGHT NOT HAVE DONE IT AT 40 MS WEITZEL SAYS I MIGHT HAVE WAITED UNTIL MAYBE I WAS 45 IF I HAD DONE THAT I WOULD HAVE DIED SPURRED BY EVIDENCE THAT EARLY DETECTION OF BREAST CANCER CAN SAVE LIVES AND MONEY A GROWING NUMBER OF LARGE EMPLOYERS ARE OFFERING MAMMOGRAPHY SCREENING AS PART OF THEIR OWN PRIMARYCARE CLINICS FOR EMPLOYEES DEPENDENTS AND RETIREES BREAST CANCER IS THE MOST COMMON CANCER IN WOMEN SAYS GREGORY N LARKIN DIRECTOR OF EMPLOYEE HEALTH SERVICES AT ELI LILLY & CO WHEN IT OCCURS WITHOUT DETECTION THE IMPACT ON THE WOMAN IS TRAGIC AND THE IMPACT ON THE EMPLOYER IS LOSS OF PRODUCTIVITY AND HEALTH COSTS DR LARKIN ESTIMATES THAT AN ADVANCED CASE OF BREAST CANCER COSTS LILLY MORE THAN 100000 A CASE IN LOST WORK TIME AND MEDICAL COSTS MAMMOGRAPHY EQUIPMENT COSTS ABOUT 80000 HE SAYS AT LEAST 11 COMPANIES MAINTAIN BREAST XRAY EQUIPMENT TENDING TO CONFIRM A SURVEY THIS YEAR BY FORESIGHT COMMUNICATIONS FOR ZENECA THAT FOUND THE NUMBER HAS MORE THAN DOUBLED SINCE 1985 ELI LILLY AND USX CORP STARTED THEIR PROGRAMS JUST THIS YEAR BESIDES CURBING SPIRALING MEDICAL COSTS ONSITE MAMMOGRAPHY SCREENING REDUCES THE LONG WAITS AT DOCTORS' OFFICES AND THE MAZE OF INSURANCE COPAYMENTS THAT CAUSE MANY WOMEN TO PUT OFF THIS EXAM THE COMPANY MAKES IT SO SIMPLE SAYS KAYE BENNETT WHO WORKS IN PUBLIC RELATIONS AT UPJOHN CO THEY SEND ME A REMINDER LETTER WHEN IT'S TIME TO GET IT DONE AND ALL I HAVE TO DO IS JUST RUN ACROSS THE STREET ZENECA'S BREASTCANCER SCREENING PROGRAM WHICH INCLUDES SELFEXAMINATION LESSONS AND FREE VOLUNTARY MAMMOGRAMS HAS DETECTED MALIGNANT TUMORS IN EIGHT WOMEN JEFF TAU A SPOKESMAN AT THE BIOSCIENCE COMPANY THAT IS AN AFFILIATE OF ZENECA GROUP PLC OF THE UK ESTIMATES SAVINGS IN MEDICAL COSTS FOR THE 1500 MAMMOGRAMS CONDUCTED SINCE 1989 AT 36000 WITH AN ADDITIONAL 200000 SAVINGS IN LOST WORK TIME FOR THE EIGHT WOMEN RETRAINING FOR REPLACEMENT EMPLOYEES AND HOSPITALIZATION BECAUSE THEY DETECTED THE TUMORS EARLY ZENECA'S CHAIRMAN A KEITH WILLARD SAYS THE COMPANY BECAME INTERESTED IN EARLY DETECTION BECAUSE ITS PHARMACEUTICAL GROUP MARKETS A BREAST CANCER DRUG FOUR OF THE OTHER COMPANIES THAT OWN MAMMOGRAPHY EQUIPMENT ALSO MANUFACTURE MEDICAL PRODUCTS UPJOHN ELI LILLY MERCK & CO DUPONT CO AND SCHERINGPLOUGH CORP ALTHOUGH MORE INHOUSE CLINICS ARE CONSIDERING ADDING MAMMOGRAPHY SCREENING PROGRAMS SOME BEMOAN THE HASSLE OF MAINTAINING THE EQUIPMENT AND QUESTION WHETHER ONSITE SCREENING PRODUCES THE DESIRED SAVINGS CATHY SCHUTT MANAGER OF HEALTH SERVICES AT RAYTHEON CO SAYS THE COMPANY ENDED ITS SCREENING PROGRAM BECAUSE THE MACHINES HAD TO BE UPDATED AND SERVICED FREQUENTLY HEALTHCARE CONSULTANTS AND MANAGERS WHO RUN MAMMOGRAPHY CLINICS FIGURE THAT A COMPANY NEEDS TO EMPLOY AT LEAST 1000 TO 2000 WOMEN TO JUSTIFY STARTING A PROGRAM TO MAINTAIN THE QUALITY STANDARDS SET BY THE AMERICAN COLLEGE OF RADIOLOGY WHICH RUNS A VOLUNTARY ACCREDITATION PROGRAM AND STILL MAKE THE PROGRAM COSTEFFICIENT COMPANIES MUST SCREEN A HIGH VOLUME OF WOMEN JIM NORTON A HEALTHCARE CONSULTANT AT A FOSTER HIGGINS ADVISED PURITY SUPERMARKETS NOT TO OFFER ONSITE SCREENING BECAUSE MOST OF ITS FEMALE EMPLOYEES ARE UNDER 35 THE AGE AT WHICH THE AMERICAN CANCER SOCIETY RECOMMENDS THAT WOMEN HAVE THEIR FIRST EXAM SOME COMPANIES FIND IT MORE COST EFFECTIVE AND CONVENIENT TO HAVE COMPANIES THAT SPECIALIZE IN MAMMOGRAPHY SCREENING RUN THEIR PROGRAMS FOR INSTANCE ADOLPH COORS CO CONTRACTS WITH DENVERBASED MAMMOGRAPHY CENTERS TO SUPPLY EQUIPMENT AND CONDUCT MAMMOGRAMS AT COORS'S GOLDEN COLO CLINIC FIVE BLOCKS FROM ITS BREWERY ONE OPTION FOR SMALLER COMPANIES IS CONTRACTING WITH MOBILE MAMMOGRAPHY SCREENING PROGRAMS TO BRING VANS TO COMPANY PREMISES ONCE A YEAR AND MAKE MAMMOGRAMS AVAILABLE TO EMPLOYEES JEAN GRISWOLD PRESIDENT OF CHARLOTTE NCBASED METROLINA OUTREACH MAMMOGRAPHY SAYS MANY OF THE WOMEN WHO WORK AT THE TEXTILE MILLS AND OTHER BUSINESSES SHE SERVES WITH HER 33FOOT MOTOR COACH WOULDN'T OTHERWISE GET A MAMMOGRAM WOMEN IN MILLS DON'T HAVE A LOT OF DISCRETIONARY INCOME AND A LOT OF THEM ARE SINGLE MOTHERS WITH KIDS MS GRISWOLD SAYS WHEN IT'S A CHOICE OF A MAMMOGRAM OR THE KIDS' SHOES THE SHOES WIN BUT SOME EMPLOYEES ARE RELUCTANT TO USE SUCH SERVICES MS WEITZEL THE BREAST CANCER SURVIVOR THINKS THAT THE MOBILE VANS ARE LESS PROFESSIONAL PRIVACY CAN ALSO BE AN ISSUE BEFORE PURCHASING ITS OWN MAMMOGRAPHY EQUIPMENT IN 1991 MERCK HAD OFFERED ITS WOMEN EMPLOYEES MAMMOGRAPHY PERFORMED ONSITE BY MOBILE VANS A STUDY SHOWED 734 MAMMOGRAMS PERFORMED OVER A THREEYEAR PERIOD WITH THREE CANCERS DETECTED IN CONTRAST SINCE SEPTEMBER 1991 WHEN ONSITE MAMMOGRAPHY BEGAN ALMOST 1000 MAMMOGRAMS HAVE BEEN PERFORMED FROM A POPULATION OF ABOUT 1200 ELIGIBLE WOMEN SAYS ROBERT ZULLO CORPORATE MEDICAL DIRECTOR AT MERCK THREE MALIGNANCIES WERE DETECTED UPJOHN'S MS BENNETT SAYS SHE OFTEN WONDERS WHETHER A COLLEAGUE WHO DIED OF BREAST CANCER WOULD HAVE DISCOVERED A MALIGNANT TUMOR SOONER IF UPJOHN'S INHOUSE PROGRAM HAD BEEN IN PLACE THEN IF THEY HAD FOUND IT EARLIER IT COULD HAVE SAVED HER LIFE MS BENNETT SAYS 9309170061 930917 ABREAST OF THE MARKET STOCKS EASE AS DROP IN BOND PRICES TRIGGERS PROFITTAKING IN SHARES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS FELL AS INVESTORS WATCHED BOND PRICES SLIDE THE DOW JONES INDUSTRIAL AVERAGE EASED 280 OR 008 TO 363085 ON WEDNESDAY IT TRADED IN A WIDE 50POINT RANGE BROADER INDEXES ALSO LOST GROUND BUT THE NASDAQ COMPOSITE INDEX OF OVERTHECOUNTER STOCKS INCHED UP 025 OR 003 TO 73980 BIG BOARD DECLINERS LED ADVANCERS 990 TO 934 THE CORRECTION IN THE BOND MARKET SEEMS TO BE IN FULL FORCE SAID HUGH JOHNSON FIRST ALBANY CHIEF INVESTMENT OFFICER THE RESULTING RISE IN INTEREST RATES HAS TRIGGERED PROFITTAKING IN STOCKS HE SAID LONGTERM GOVERNMENT SECURITIES SLID WITH THE 30YEAR TREASURY BOND DROPPING MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH 1000 FACE VALUE FOR A RISE IN YIELD TO 603 HIGHER YIELDS IN BONDS MAKE THE POTENTIAL RETURNS OF THE STOCK MARKET LESS ATTRACTIVE ECONOMICALLY SENSITIVE STOCKS MEANWHILE WERE AMONG THE MOST BUOYANT ALLIEDSIGNAL JUMPED 1 TO 73 1/4 DEERE & CO ADVANCED 1 3/8 TO 69 5/8 AND USXUS STEEL GROUP ADDED 3/8 TO 29 3/4 THE DOW JONES TRANSPORTATION AVERAGE EDGED UP 106 OR 007 TO 162535 PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES SAID SOME OF THE STRENGTH IN CYCLICALS MAY HAVE COME FROM INVESTORS WHO WERE EXITING THE BOND MARKET ECONOMIC DATA RELEASED YESTERDAY LARGELY MET ANALYSTS' EXPECTATIONS AMONG THE FIGURES INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE A SLIM 2000 LAST WEEK WHILE THE MERCHANDISE TRADE DEFICIT NARROWED TO 1034 BILLION IN JULY THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 217 OR 047 TO 45943 THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX LOST 073 OR 029 TO 25494 AND THE DOW JONES EQUITY MARKET INDEX FELL 181 OR 041 TO 43637 THE ROSH HASHANA HOLIDAY THINNED MARKET ACTIVITY AFTER ITS BUSIEST DAY IN THREE WEEKS WEDNESDAY BIG BOARD VOLUME SLIPPED TO 2246 MILLION COMPARED WITH 2944 MILLION SHARES IN THE PREVIOUS SESSION BUT THE PACE IS LIKELY TO QUICKEN TODAY AS STOCK INDEX FUTURES AND OPTIONS ON INDIVIDUAL STOCKS COME TO THEIR QUARTERLY EXPIRATIONS PRICE MOVEMENTS ARE EXAGGERATED SOMETIMES DURING THESE SOCALLED TRIPLEWITCHING SESSIONS WHIRLPOOL SLUMPED 3 1/2 TO 57 1/4 AFTER SEVERAL ANALYSTS TRIMMED THEIR FORECASTS FOR THE BENTON HARBOR MICH HOME APPLIANCE MAKER'S 1993 AND 1994 EARNINGS AMONG CONCERNS THEY NOTE THAT WHIRLPOOL'S MEXICAN OPERATIONS REMAIN WEAK AND WILL LIKELY SHOW A LOSS FOR THE THIRD QUARTER LATE YESTERDAY WHIRLPOOL RESPONDED BY SAYING THAT ITS EXPECTATIONS FOR THE FUTURE ARE NO DIFFERENT TODAY FROM YESTERDAY LAST WEEK OR SIX WEEKS AGO THE COMPANY SAID IT ANTICIPATES A 20 TO 30 UPTURN IN FULLYEAR 1993 OPERATING PROFIT SHOWBOAT JUMPED 4 TO 19 3/4 OPPENHEIMER & CO ANALYST STEVEN EISENBERG BEGAN COVERAGE OF THE STOCK WITH A BUY RECOMMENDATION SEPARATELY THE LAS VEGAS CONCERN SAID IT ENTERED A PRELIMINARY ACCORD TO DEVELOP AND OPERATE A RIVERBOAT CASINO ON THE SHORE OF LAKE MICHIGAN IN A PARTNERSHIP WITH A PRIVATELY HELD FIRM HOME DEPOT ROSE 1 7/8 TO 37 3/8 AFTER TUMBLING 6 1/8 DURING THE FIRST THREE DAYS THIS WEEK JC BRADFORD & CO ANALYST GARY DENNIS YESTERDAY UPGRADED A RATING ON THE ATLANTA HOME IMPROVEMENT PRODUCTS RETAILER TO BUY FROM ACCUMULATE CITING THE SHARE PRICE SLIDE PRECIOUS METALS STOCKS WERE STRONG AS GOLD ADVANCED FOR A SECOND DAY HOMESTAKE MINING ADDED 5/8 TO 16 3/4 NEWMONT MINING GAINED 1 3/8 TO 46 5/8 AND ON THE AMERICAN STOCK EXCHANGE ECHO BAY MINES ROSE 3/4 TO 10 3/8 GOLD FOR DECEMBER DELIVERY ROSE 510 TO 35470 AN OUNCE IN NEW YORK PLACER DOME CLIMBED 1 3/4 TO 19 1/8 THE VANCOUVER MINING CONCERN SAID THAT ACCORDING TO A PARTIAL RESOURCE ESTIMATE A VENEZUELAN PROPERTY IN WHICH IT HAS A 70 INTEREST CONTAINS 48 MILLION OUNCES OF GOLD AMERICAN TELEPHONE & TELEGRAPH FELL 1 1/8 TO 58 7/8 AFTER THE COMPANY SAID IT WAS SEEKING HIGHER RATES ON SOME OF ITS DOMESTIC AND INTERNATIONAL LONGDISTANCE SERVICES THE INCREASES WOULD GENERATE 107 MILLION MORE IN REVENUE ANNUALLY ROYAL DUTCH PETROLEUM LED THE BIG BOARD'S MOST ACTIVE LIST FOR A FIFTH STRAIGHT SESSION IN CONTINUED HEAVY DIVIDENDRELATED TRADING SHARES OF THE DUTCH COMPANY DROPPED 1 1/4 TO 99 1/4 ON 97 MILLION SHARES SUN MICROSYSTEMS DECLINED 1 3/4 TO 24 7/8 IN NASDAQ TRADING MORGAN STANLEY & CO DOWNGRADED ITS RATING ON THE MOUNTAIN VIEW CALIF COMPUTER WORKSTATION MAKER TO HOLD FROM BUY QVC NETWORK DROPPED 2 1/4 TO 60 1/2 THE WEST CHESTER PA TELEVISED SHOPPING NETWORK COMPANY IS CONSIDERING WHETHER TO BID FOR PARAMOUNT COMMUNICATIONS IN COMPETITION WITH VIACOM PAINEWEBBER LOWERED A RATING ON NASDAQLISTED QVC IN THE WAKE OF NEWS OF THAT POSSIBLE BID PARAMOUNT COMMUNICATIONS IN COMPETITION WITH VIACOM PAINEWEBBER LOWERED A RATING ON NASDAQLISTED QVC IN THE WAKE OF NEWS OF THAT POSSIBLE BID SHARES OF PARAMOUNT WERE UP 1/2 TO 65 VIACOM LOST 1/2 TO 61 ON THE AMERICAN STOCK EXCHANGE FEDERALMOGUL JUMPED 1 1/4 TO 26 1/4 THE SOUTHFIELD MICH COMPANY AGREED TO BUY A UNIT OF SPX CORP IN A 150 MILLION TRANSACTION SPX SHARES CLIMBED 1 3/8 TO 17 1/2 BOSTON SCIENTIFIC TUMBLED AGAIN AS SEVERAL ANALYSTS TRIMMED EARNINGS FORECASTS FOR THE WATERTOWN MASS MEDICAL DEVICE COMPANY THE CONCERN WEDNESDAY FORECAST LOWERTHANEXPECTED THIRDQUARTER REVENUE THE STOCK FELL 1 1/8 TO 10 1/8 IT DROPPED 2 1/8 IN THE PREVIOUS SESSION 9309170060 930917 BUSINESS BRIEF DUN & BRADSTREET CORP ACCOUNTING CHANGE TO CAUSE SPECIAL CHARGE THIS QUARTER DUN & BRADSTREET CORP NEW YORK SAID IT WILL ADOPT NEW ACCOUNTING PRINCIPLES FOR POSTEMPLOYMENT BENEFITS IN THE THIRD QUARTER RESULTING IN A NONCASH AFTERTAX SPECIAL CHARGE OF ABOUT 250 MILLION ALL COMPANIES ARE REQUIRED TO ADOPT THE RULE ACCOUNTING STANDARD 112 BY 1994 D&B'S FIRSTQUARTER NET INCOME WILL BE RESTATED FOR THE CUMULATIVE CHARGE D&B REPORTED FIRSTQUARTER EARNINGS OF 59 CENTS A SHARE EXCLUDING THE ONETIME IMPACT OF THE ADOPTION OF ACCOUNTING STANDARD 106 FOR CERTAIN POSTRETIREMENT BENEFITS OTHER THAN PENSIONS THE BUSINESS INFORMATION AND SOFTWARE COMPANY SAID ITS RESTATED FIRSTQUARTER LOSS WILL BE ABOUT 160 A SHARE AFTER THE CUMULATIVE EFFECT OF BOTH REQUIRED CHANGES IN ACCOUNTING PRINCIPLES 9309170059 930917 PEPPERAND SALT THE WAITING IS OVER THE WILL HAS BEEN READ IS WHAT IT SAID THE VERY LAST CENT WE HAVE SO MANY DIFFERENT FORMS OF ENTERTAINMENT THESE DAYS TV MOVIES PRESIDENTIAL LIBRARIES 9309170058 930917 NASD TAKES ACTION AGAINST THREE FIRMS DISCIPLINARY MEASURES SET FOR VIOLATIONS OF RULES AND SECURITIES LAWS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY MEASURES AGAINST THREE FIRMS AND A NUMBER OF INDIVIDUALS FOR VIOLATION OF NASD RULES AND SECURITIES LAWS GENERAL BOND & SHARE CO DENVER WAS FINED 45750 AND EXPELLED THE SANCTIONS WERE MODIFIED BY THE SECURITIES AND EXCHANGE COMMISSION FOLLOWING APPEAL OF A 1992 NASD DECISION IN 1992 THE NASD HAD SAID THE COMPANY AND ITS OWNER HAD BEEN FINED 60000 JOINTLY AND SEVERAL EACH RESPONSIBLE FOR THE FULL AMOUNT THE FIRM EXPELLED AND THE OWNER BARRED FROM THE NASD THE NASD SAID THE SANCTIONS WERE BASED ON FINDINGS THAT GENERAL BOND ACCEPTED 25750 FROM 45 ISSUERS FOR LISTING THE FIRM AS A MARKET MAKER IN THE PINK SHEETS BUT DIDN'T PROVIDE BONAFIDE MARKETMAKING SERVICES AND THE FIRM FAILED TO PROVIDE REASONABLY CURRENT INFORMATION FOR TWO ISSUERS AND DIDN'T RESPOND FULLY TO NASD REQUESTS FOR INFORMATION GLIKSMAN SECURITIES CORP MARINA DEL REY CALIF WAS FINED 5000 AND SUSPENDED UNTIL IT PAYS A 134184 ARBITRATION AWARD THE SANCTIONS WERE IMPOSED FOLLOWING APPEAL OF A BUSINESSCONDUCT COMMITTEE DECISION BR STICKLE & CO CHICAGO AND PRINCIPAL BRUCE R STICKLE WERE FINED 15000 EACH RESPONSIBLE FOR THE FULL AMOUNT FOLLOWING APPEAL OF A COMMITTEE DECISION THE NASD SAID THE FIRM FAILED TO MAINTAIN MINIMUM REQUIRED NET CAPITAL AMONG OTHER VIOLATIONS THE ACTION HAS BEEN APPEALED TO THE SEC INDIVIDUALS BARRED OR SUSPENDED INCLUDED CRYSTAL RENEE ADJANIWILLIAMS LOS ANGELES FINED 32000 AND BARRED JOSE AGUILAR COCHELLA CALIF FINED 166493 AND BARRED ADAM BARKOW PHILADELPHIA FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS BARRY A BATES AURORA COLO FINED 10000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS EDWARD W BOHM ATLANTA FINED 20000 AND BARRED RAY A BOOTH MYRTLE BEACH SC FINED 120000 AND BARRED ROGER M BROOKS NEW YORK FINED 15000 AND SUSPENDED FOR 15 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS AND ROBERT F BROPHY ASTON PA FINED 30000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES ALSO FREDERIC PETER GRAY LONG BEACH NY AND ROBERT KAHAN ROCKVILLE CENTRE NY EACH FINED 7500 AND SUSPENDED AS A GENERAL SECURITIES PRINCIPAL FOR 30 BUSINESS DAYS AND RICHARD ARCHER BETHPAGE NY FINED 2500 AND SUSPENDED AS A GENERAL SECURITIES PRINCIPAL FOR 45 BUSINESS DAYS THE THREE DIDN'T ADMIT OR DENY ALLEGATIONS MARK A GRIFFIN BETHANY OKLA SUSPENDED FOR ONE WEEK AND IN ANY PRINCIPAL CAPACITY FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS KATHERINE V HART NORWAY MICH FINED 29000 BARRED AND REQUIRED TO PAY 856684 IN RESTITUTION WITHOUT ADMITTING OR DENYING CHARGES RICHARD WILBURT KLINDWORTH SR ORONOCO MINN FINED 701615 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES KRESKIN NORMAN LEE SAN DIEGO BARRED JEFFREY RAY LUDES NOVATO CALIF FINED 5000 AND BARRED AND MIKE K LULLA OKLAHOMA CITY FINED 220000 AND BARRED FOLLOWING APPEAL OF A COMMITTEE DECISION THE ACTION HAS BEEN APPEALED TO THE SEC MR LULLA FRAUDULENTLY USED 200000 OF A CUSTOMER'S FUNDS FOR HIS OWN USE THE NASD SAID BUT MR LULLA SAID HE NEVER ADVISED THE CUSTOMER AND DISAGREES WITH THE NASD'S RULING THE NASD IS TOTALLY INCORRECT HE SAID CURTIS W MANNING PARK RIDGE ILL FINED 15000 AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM C MATTHEWS WALNUT MICH FINED 20000 BARRED AND REQUIRED TO PAY 6000 PLUS INTEREST IN RESTITUTION JEROME ANTHONY MESSANA STATEN ISLAND NY SUSPENDED FOR THREE BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES ROY MICHAEL MOHR RUSHVILLE IND FINED 25000 BARRED AND ORDERED TO PAY 229 IN RESTITUTION LAURA ANN MONTGOMERY INDIANAPOLIS IND FINED 115000 BARRED AND REQUIRED TO PAY 19000 IN RESTITUTION MICHAEL J PARKER OKLAHOMA CITY FINED 522000 BARRED AND ORDERED TO PAY 472000 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO MICHAEL D PITTMAN AURORA COLO FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ANTHONY SALVATORE QUATTROCHI NAPERVILLE ILL FINED 11000 BARRED AND REQUIRED TO PAY 2200 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS CARLOS B QUIRINO EL CERRITO CALIF FINED 100000 BARRED AND ORDERED TO PAY 33122 IN RESTITUTION NATHANIEL RANDOLPH SANTA ANA CALIF BARRED EDWARD G RATYNIAK BAYONNE NJ FINED 100000 BARRED AND ORDERED TO PAY 2909263 WITHOUT ADMITTING OR DENYING ALLEGATIONS FRANK PAUL RAVENNA JR POMONA NY FINED 10000 SUSPENDED FOR 30 DAYS AND BARRED FOR FAILING TO PAY A 189596 ARBITRATION AWARD WITHIN 30 DAYS CAROL ANN RHOADS LITTLE ROCK ARK FINED 6700 SUSPENDED FOR ONE WEEK AND BARRED IN ANY PRINCIPAL CAPACITY FOLLOWING APPEAL OF A COMMITTEE DECISION RAY C RIVERA JR BUFFALO GROVE ILL FINED 120000 BARRED AND REQUIRED TO PAY 943488 IN RESTITUTION ROBERT MAXIMILLIAN SAAR OZONE PARK NY FINED 50000 BARRED AND REQUIRED TO PAY 123250 IN RESTITUTION WILLIAM MICHAEL SANDERS BELTON MO FINED 1380785 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM JOHN SEYMOUR BAKERSFIELD CALIF FINED 167821 WHICH MAY BE REDUCED BY ANY RESTITUTION PAID TO A CUSTOMER UP TO 67821 AND BARRED JAMES EDWARD SHICKORA RARITAN NJ SUSPENDED FOR THREE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS GARY R SIGMAN WYNNEWOOD PA FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS CHARLES MORTON SOUTHALL PEBBLE BEACH CALIF FINED 35000 AND SUSPENDED FOR 60 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS STEVEN B THEYS CASTLE ROCK COLO FINED 50000 AND BARRED PENALTIES AFFIRMED BY THE SEC DALE C TRASK SWAMPSCOTT MASS FINED 30000 AND SUSPENDED FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT L ULTERWIJK SOEST THE NETHERLANDS FINED 50000 BARRED AND REQUIRED TO PAY 145000 IN RESTITUTION TO HIS MEMBER FIRM INDIVIDUALS FINED INCLUDED HARRY A FREDRICK III MEMPHIS TENN 12000 FOLLOWING APPEAL OF A COMMITTEE DECISION AND ROBERT DENNIS RICKARD OMAHA NEB 1530824 AND ORDERED TO PAY 280234 IN RESTITUTION WITHOUT ADMITTING OR DENYING CHARGES THE NASD SAID MR FREDRICK EXECUTED CERTAIN TRANSACTIONS WHOSE PRICES DIDN'T REASONABLY RELATE TO THE MARKET PRICE OF THE SECURITIES MR FREDRICK SAID ALL HIS ACTIONS WERE AUTHORIZED BY THE TRADING DESK AT HIS FIRM HE ALSO DENIED THAT HE FALSIFIED ANY RECORDS ANOTHER NASD CHARGE 9309170057 930917 ROSS'S NEW FRIEND SEN DONALD RIEGLE A MICHIGAN DEMOCRAT AND A STAUNCH OPPONENT OF NAFTA WILL APPEAR AT AN ANTINAFTA RALLY IN LANSING TOMORROW WITH ROSS PEROT THE FOLLOWING IS AN EXCERPT FROM THE CLOSING PRESENTATION OF ROBERT S BENNETT THE SENATE ETHICS COMMITTEE'S OUTSIDE COUNSEL DELIVERED IN JANUARY 1991 MR BENNETT INVESTIGATED SEN RIEGLE'S DEALINGS WITH CONVICTED S&L BARON CHARLES KEATING A RELATED EDITORIAL APPEARS TODAY SEE RELATED EDITORIAL SIGNAL NEEDED WSJ SEPT 17 1993 IN JANUARY 1987 SEN RIEGLE HAD BECOME A HIGHRANKING MAJORITY MEMBER OF THE BANKING COMMITTEE BEFORE THAT TIME CHARLES KEATING HAD NEVER OFFERED TO RAISE MONEY FOR HIM ON JAN 28 1987 SEN RIEGLE MET WITH MR KEATING AND KEATING AIDE JIM GROGAN AND DISCUSSED AT LEAST THE PONTCHARTRAIN FUNDRAISER NOTES OF THAT MEETING AND OTHER DOCUMENTARY EVIDENCE ESTABLISH THAT MR KEATING COMMITTED TO RAISE 100000 TO 125000 FOR SEN RIEGLE'S CAMPAIGN ACCORDING TO CALENDARS AND TESTIMONY SEN RIEGLE MET IN FEBRUARY 1987 WITH JIM GROGAN AND ARTHUR YOUNG & CO MANAGING PARTNER JACK ATCHISON TO DISCUSS LINCOLN SAVINGS SEN RIEGLE CANDIDLY STATES THAT HE HAS VERY LITTLE MEMORY OF HIS CONTACTS WITH MR KEATING OR MR KEATING'S ASSISTANTS BUT YOU WILL RECALL AT THE BEGINNING OF HIS TESTIMONY HE OUTLINES 18 OR 20SOME ODD CONTACTS ON MARCH 6 1987 SEN RIEGLE MET WITH FORMER FEDERAL HOME LOAN BANK BOARD CHAIRMAN ED GRAY HIS CALENDAR SHOWS THAT AND MENTIONED TO HIM THAT OTHER SENATORS HAD CONCERNS ABOUT LINCOLN AND HE SHOULD DISCUSS THESE CONCERNS WITH THEM CHAIRMAN GRAY HAS TESTIFIED THAT HE PROTESTED THAT THE MEETING WITH THE SENATORS WAS NOT NECESSARY BUT SEN RIEGLE REPEATED THAT MR GRAY WOULD BE GETTING A CALL TWO DAYS AFTER THE MEETING WITH MR GRAY IN WHICH MR RIEGLE MENTIONED TO MR GRAY ABOUT MEETING WITH SENATORS SEN RIEGLE FLEW TO PHOENIX FOR A PREVIOUSLY SCHEDULED TRIP AND ACCORDING TO THE TESTIMONY OF MR GROGAN HE SPENT APPROXIMATELY TWO HOURS WITH CHARLES KEATING ON MARCH 8 AND 9 1987 AT ACC AMERICAN CONTINENTAL COMPANY THE PARENT COMPANY OF LINCOLN SAVINGS SEN RIEGLE HAS REPEATEDLY DENIED TO THIS COMMITTEE THAT THERE WAS ANY FUNDRAISING ASPECT TO THIS MEETING THE DOCUMENTARY EVIDENCE IS OVERWHELMING THAT THERE WAS A FUNDRAISING ASPECT TO THE TRIP THE DOCUMENTS IN REAL TIME SHOW IT SEN DECONCINI'S FUNDRAISER ARRANGED A VISIT TO ACC AFTER BEING ASKED BY RIEGLE AIDE KEVIN GOTTLIEB TO SET UP FUNDRAISING EVENTS FOR THE SENATOR BUT THE IMPORTANT POINT IS THAT AT THE TIME HE VISITED ACC SEN RIEGLE CERTAINLY WAS AWARE THAT CHARLES KEATING WAS MARSHALING TENS OF THOUSANDS OF DOLLARS FOR HIS CAMPAIGN SEN RIEGLE HAD ATTENDED THE JANUARY MEETING WHERE MR KEATING OFFERED TO DO THIS AND WE HAVE THE NOTES OF KEVIN GOTTLIEB TO SHOW IT SEN RIEGLE HAS TESTIFIED AND I QUOTE I DID NOT ORGANIZE THE MEETING I DID NOT DECIDE WHO WAS GOING TO ATTEND THE MEETING I DID NOT INVITE ANYBODY TO THE MEETING I DID NOT CREATE THE AGENDA FOR THE MEETING AND I WAS NOT INVITED TO THE MEETING AND EVERYBODY KNOWS THAT I DID NOT ATTEND THE MEETING AND WHEN JIM GROGAN WAS ASKED WHETHER THERE WAS ANY DOUBT IN HIS MIND THAT IT WAS SEN RIEGLE WHO ARRANGED THE MEETING HIS ANSWER WAS NO SIR NO SIR NO DOUBT IN HIS MIND AND WHEN MR THOMAS GREEN SEN RIEGLE'S LAWYER CHALLENGED HIM ON THIS POINT MR GROGAN EXPLAINED WHY HE REMEMBERED IT SO CLEARLY HE SAID THAT SEN RIEGLE'S OFFER TO ARRANGE A MEETING OF SENATORS WITH MR GRAY MADE A VERY DEEP IMPRESSION BECAUSE WE WERE EXCITED THAT FINALLY A SENATOR WHO WAS ACTIVE ON THE BANKING COMMITTEE HAD AN IDEA THAT THERE MAY BE A WAY TO CREATE A RESOLUTION AND THAT WAS VERY IMPORTANT TO US ONE WEEK LATER ON MARCH 23 1987 NINE DAYS BEFORE THE MEETING OF APRIL 2 WITH MR GRAY SEN RIEGLE ATTENDED THE PONTCHARTRAIN FUNDRAISER ORGANIZED BY MR KEATING WHICH ACCORDING TO SEN RIEGLE GENERATED APPROXIMATELY 77000 IN CONTRIBUTIONS FROM KEATING EMPLOYEES AND ASSOCIATES FOR SEN RIEGLE'S REELECTION CAMPAIGN IF YOU DETERMINE THAT SEN RIEGLE WAS NOT TELLING YOU THE TRUTH IT RAISES A QUESTION AS TO WHAT WAS THE TRUE PURPOSE OF THESE MEETINGS IT CASTS A QUESTION ABOUT WHETHER THESE MEETINGS ARE TRULY WHAT THEY WERE PURPORTED TO BE BY SEN RIEGLE IF YOU WERE TO DETERMINE THAT SEN RIEGLE WAS NOT HONEST WITH YOU AND INTENTIONALLY WAS NOT HONEST WITH YOU THEN I THINK THAT THIS COMMITTEE HAS TO ACT ON THAT AND I THINK THE IMPORTANT QUESTION YOU HAVE TO ASK YOURSELF IF THERE WAS NO IMPROPER LINK BETWEEN THE MONEY AND ACTION A QUESTION YOU HAVE TO ASK YOURSELF IS WHY IS THERE SO MUCH SUBSTANTIAL EVIDENCE THAT SEN RIEGLE WAS MAKING AN EFFORT TO OBSCURE HIS ROLE NOW THAT'S GOING TO BE FOR YOU TO ULTIMATELY DETERMINE BUT WHY WHY ALL THIS EFFORT AT OBSCURING THE ROLE IT DOESN'T FIT IT DOESN'T FIT 9309170056 930917 BUSINESS BRIEF FUTURE COMMUNICATIONS INC BROADCASTER SAYS JUDGMENT OF 3 MILLION IS SETTLED FUTURE COMMUNICATIONS INC SAID IT CONFIRMED SETTLEMENT OF A NEARLY 3 MILLION JUDGMENT AGAINST IT FROM US PHILIPS CORP IN MAY A FEDERAL JUDGE APPOINTED A RECEIVER TO TAKE CONTROL OF DALLASBASED FUTURE'S ASSETS IN CONNECTION WITH THE JUDGMENT BUT IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY FUTURE SAID THE SETTLEMENT OBVIATES ANY ORDERS PURSUANT TO THE JUDGMENT THE FIRM HAD SAID AN UNIDENTIFIED THIRD PARTY HAD AGREED TO PAY PHILIPS 2 MILLION BY SEPT 15 TO ACQUIRE THE JUDGMENT THE JUDGMENT STEMMED FROM THE PURCHASE OF EQUIPMENT BY A FORMER FUTURE UNIT FROM A PHILIPS PREDECESSOR FUTURE DIDN'T PUBLICLY DISCLOSE IT UNTIL AUG 31 FUTURE IS A CABLE AND BROADCASTING CONCERN WHOSE STOCK ROCKETED FROM 650 IN LATE JUNE TO 27375 BEFORE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SUSPENDED TRADING AUG 31 UNTIL IT DETERMINES WHETHER THE COMPANY COMPLIES WITH NASDAQ LISTING STANDARDS 9309170055 930917 BUSINESS BRIEF VALLEY BANCORP SHARES SPURT PRIOR TO NEWS OF TALKS TRADING IS HALTED SHARES OF VALLEY BANCORP APPLETON WIS JUMPED IN ADVANCE OF THE COMPANY'S DISCLOSURE THAT IT'S ENGAGED IN TALKS THAT COULD RESULT IN A SIGNIFICANT BUSINESS COMBINATION TRANSACTION THE BANK HOLDING COMPANY WHICH HAS 43 BILLION IN ASSETS SAID IT MADE THE ANNOUNCEMENT BECAUSE OF CONCERN OVER THE RECENT MARKET ACTIVITY IN ITS STOCK TRADING WAS HALTED IN VALLEY'S STOCK ON THE NATIONAL OVERTHECOUNTER MARKET LATE IN YESTERDAY'S SESSION AND DIDN'T REOPEN THE SHARES LAST TRADED AT 3775 UP 5 OR 15 VALLEY SAID IT DOESN'T PLAN ANY FURTHER ANNOUNCEMENTS CONCERNING NEGOTIATIONS UNTIL EITHER A DEFINITIVE AGREEMENT HAS BEEN REACHED WHICH IT EMPHASIZED CAN'T BE ASSURED OR THE NEGOTIATIONS ARE TERMINATED 9309170054 930917 WHAT'S NEWS WORLDWIDE ARAFAT FORGED ACCORDS WITH EGYPT'S LEADER AND MUSLIM FUNDAMENTALISTS THE PLO CHIEF SAID EGYPTIAN PRESIDENT MUBARAK AGREED TO HELP SPEED PALESTINIAN SELFRULE IN GAZA AND JERICHO BY TRAINING POLICE AND SECURITY FORCES SEPARATELY ARAFAT'S MAINSTREAM FATAH FACTION SAID IT REACHED AN AGREEMENT WITH THE FUNDAMENTALIST GROUP HAMAS TO AVOID VIOLENCE OVER THEIR OPPOSING STANDS ON THE PLOISRAELI PACT ARAFAT STILL MUST CONTEND WITH STRONG OPPOSITION FROM OTHER EXTREMIST GROUPS ONE ANTIARAFAT GROUP SAID SYRIA HAD PLEDGED TO INSIST ON ISRAELI WITHDRAWAL FROM ALL OCCUPIED LANDS AND ON PALESTINIAN NATIONAL RIGHTS ISRAEL WOULD WITHDRAW ITS SOLDIERS FROM SOUTHERN LEBANON IF LEBANESE TROOPS PROVED THEY COULD CONTAIN HEZBOLLAH GUERRILLAS THERE PRIME MINISTER RABIN SAID IN JERUSALEM INTERNATIONAL MEDIATORS ASKED BOSNIA'S THREE WARRING FACTIONS TO MEET IN SARAJEVO NEXT WEEK TO SIGN A PEACE SETTLEMENT AFTER MUSLIMS AND SERBS SIGNED A CEASEFIRE ACCORD YESTERDAY BOSNIA'S MUSLIM PRESIDENT REPEATED HIS DEMANDS FOR MORE LAND TWO EMBATTLED US SENATORS ANNOUNCED THAT THEY WILL RETIRE AFTER NEXT YEAR RATHER THAN RUN UPHILL CAMPAIGNS FOR REELECTION ARIZONA DEMOCRAT DENNIS DECONCINI AND MINNESOTA REPUBLICAN DAVID DURENBERGER BOTH IN THEIR THIRD TERM HAD BEEN HURT BY ETHICS SCANDALS RUSSIAN LEADER YELTSIN ANNOUNCED THAT HE PLANS TO BRING BACK HIS FORMER PROMARKET PRIME MINISTER IN THE POST OF THE FIRST DEPUTY PREMIER GAIDAR HAD BEEN SACRIFICED AS ACTING PRIME MINISTER BY YELTSIN IN DECEMBER AS A WAY OF PLACATING OPPONENTS GAIDAR'S RETURN IS EXPECTED TO BOLSTER THE POWER OF REFORMERS THE TOP UN ENVOY IN SOMALIA SAID HE HAD NO INTENTION OF NEGOTIATING WITH CLAN LEADER AIDID AND STRESSED THAT MORE PEACEKEEPING TROOPS ARE NEEDED IN MOGADISHU TO PROTECT THE PEOPLE BETTER JONATHAN HOWE A RETIRED US ADMIRAL SAID HE HOPED FOR AN ADDITIONAL 4000 SOLDIERS THOUGH HE ADMITTED THERE IS A SHORTAGE OF FUNDING TB CASES IN CHILDREN HAVE JUMPED 35 SINCE 1985 AS PARENTS AND OTHER ADULTS SPREAD THE DISEASE IN THEIR HOMES FEDERAL OFFICIALS SAID THE RISE IN TUBERCULOSIS AMONG CHILDREN UNDER 15 REPRESENTS THE SECOND WAVE OF TUBERCULOSIS FOLLOWING A RECENT RESURGENCE OF ADULT CASES THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID GEORGIAN LEADER SHEVARDNADZE ESCAPED NARROWLY WHEN REBEL SHELLS HIT A BUILDING IN ABKHAZIA'S CAPITAL SUKHUMI WHERE HE HAD FLOWN TO MEET WITH GEORGIAN SOLDIERS WHO ARE TRYING TO PUT DOWN A REBEL OFFENSIVE HUNDREDS OF REBELS BREACHED A TRUCE IN THE SEPARATIST REGION BY LAUNCHING A SURPRISE RAID ON THE CAPITAL AND ANOTHER TOWN THE US HAS OBTAINED INTELLIGENCE DATA SUGGESTING THAT CHINA PLANS TO SET OFF A NUCLEAR TEST BLAST AN ADMINISTRATION OFFICIAL SAID SUCH A TEST WOULD THREATEN A 15MONTH MORATORIUM DECLARED BY CLINTON IN JULY AT THE TIME HE WARNED THAT IF ANY NATION TESTED ITS WEAPONS HE WOULD SEEK AUTHORITY FROM CONGRESS TO RESUME US TESTS GEOPHYSICISTS SAID A HUGE ROCK THAT SMASHED INTO EARTH 65 MILLION YEARS AGO AND POSSIBLY KILLED OFF THE DINOSAURS MAY HAVE LEFT A CONNECTICUTSIZED CRATER SIX MILES DEEP IN EASTERN MEXICO ACCORDING TO A REPORT IN THE JOURNAL SCIENCE AN ANALYSIS OF GRAVITY FIELDS OVER THE CRATER SUGGESTS IT IS 50 LARGER THAN THOUGHT TENS OF THOUSANDS OF PEOPLE LOOTED SHOPS AND STONED POLICE IN LIBERIA'S CAPITAL VENTING THEIR FRUSTRATION WITH SOARING FOOD PRICES RIOT POLICE AND TROOPS FROM A WEST AFRICAN COALITION ARMY USED WHIPS AND TEAR GAS TO CLEAR THE STREETS IN MONROVIA WHERE A CIVIL WAR HAS LED TO FOOD SHORTAGES ANGOLAN REBELS SHELLED THE CITY OF CUITO WHERE THE GOVERNMENT SAID STARVING PEOPLE WERE EATING THE FLESH OF THE DEAD TO SURVIVE ABOUT 100 PEOPLE REPORTEDLY DIED IN THE ARTILLERY BARRAGE CUITO HAS BEEN UNDER SIEGE BY UNITA REBELS FOR EIGHT MONTHS THE UN SECURITY COUNCIL IMPOSED AN ARMS AND OIL EMBARGO ON UNITA THIS WEEK INDIANS PUSHED THEIR WAY INTO BRAZIL'S CONGRESS TO PROTEST CONSTITUTIONAL REFORMS THAT COULD HALT THE DEMARCATION OF INDIGENOUS AREAS THE INDIANS FEAR THAT IF THE LANDS AREN'T MARKED OFF THEY WILL BE TAKEN OVER BY MINERS LOGGERS AND RANCHERS THE YANOMAMI TRIBE HAS ALLEGED THAT MINERS KILLED OVER A DOZEN INDIANS IN JULY 9309170053 930917 BUSINESS BRIEF STRUCTURAL DYNAMICS RESEARCH CORP HOLDERS ALLEGE FRAUD IN SUIT FILED AGAINST SOFTWARE FIRM STRUCTURAL DYNAMICS RESEARCH CORP WHICH RECENTLY ANNOUNCED THAT THIRDQUARTER EARNINGS WOULD FALL SUBSTANTIALLY BELOW ANALYSTS' EXPECTATIONS SAID IT WAS NAMED IN A SHAREHOLDER SUIT ALLEGING FRAUD THE SOFTWARE MAKER SAID THE SUIT FILED WEDNESDAY IN FEDERAL COURT IN CINCINNATI IS TOTALLY WITHOUT MERIT AND ADDED THAT IT INTENDS TO VIGOROUSLY CONTEST ALL ALLEGATIONS LEAD PLAINTIFFS IN THE SUIT COULDN'T BE REACHED STRUCTURAL DYNAMICS BASED IN MILFORD OHIO SAID SEPT 8 THAT IT EXPECTS THIRDQUARTER NET INCOME OF FIVE CENTS TO 15 CENTS A SHARE AND REVENUE OF 45 MILLION TO 50 MILLION ANALYSTS HAD BEEN EXPECTING EARNINGS OF 18 CENTS A SHARE THE COMPANY'S COMMONSTOCK PRICE FELL ABOUT 28 ON SEPT 9 THE COMPANY SAID THE SUIT AGAINST IT AND SEVERAL OF ITS OFFICERS AND DIRECTORS SEEKS UNSPECIFIED DAMAGES FOR A CLASS OF SHAREHOLDERS WHO BOUGHT COMMON STOCK BETWEEN JUNE 30 AND SEPT 8 9309170052 930917 LEISURE & ARTS BOOKSHELF PORTRAIT OF A SINGULAR STATESMAN BY JOHN MCCLAUGHRY IN THE 19TH CENTURY THE BIOGRAPHER JAMES PARTON MARVELED AT THOMAS JEFFERSON'S ABILITY TO CALCULATE AN ECLIPSE SURVEY AN ESTATE TIE AN ARTERY PLAN AN EDIFICE TRY A CAUSE BREAK A HORSE DANCE A MINUET AND PLAY THE VIOLIN MODERN SCHOLARSHIP HAS ADDED EVEN MORE TO A LIST OF JEFFERSON'S AMAZING ACCOMPLISHMENTS THOMAS JEFFERSON A LIFE HENRY HOLT 708 PAGES 35 A SPLENDID NEW ONEVOLUME BIOGRAPHY BY WILLARD STERNE RANDALL PROVIDES ANOTHER INTRIGUING LOOK AT THE MAN WHO DREW UP THE DECLARATION OF INDEPENDENCE AND BECAME THE THIRD PRESIDENT OF THE US IN PARTICULAR MR RANDALL A HISTORICAL JOURNALIST WHO HAS WRITTEN BIOGRAPHIES OF BENEDICT ARNOLD AND BENJAMIN FRANKLIN SHEDS NEW LIGHT ON JEFFERSON'S EARLY LEGAL CAREER IN VIRGINIA AND ON HIS YEARS AS US AMBASSADOR TO THE COURT OF LOUIS XVI WHERE HE SUCCEEDED THE VENERATED FRANKLIN THE BOOK IS ALSO OUTSTANDING IN TRACING HIS ANTIPATHY TO SLAVERY THROUGHOUT HIS LONG LIFE MR RANDALL ILLUMINATES THE YOUNG JEFFERSON'S PASSION FOR DISTRIBUTING LAND OWNERSHIP AMONG THE PEOPLE AND DEFEATING THE SCHEMES OF WOULDBE LAND BARONS TO ESTABLISH A FEUDAL LAND SYSTEM ON THE VIRGINIA FRONTIER HIS CHIEF LEGAL TACTIC WAS THE FILING OF CAVEATS IN FRONTIER COURTS TO INVALIDATE LAND GRANTS OF SPECULATORS WHO THROUGH POLITICAL INFLUENCE SOUGHT A MONOPOLY ON THE COLONY'S VAST PUBLIC LANDS THE TACTIC WAS THE CUTTING EDGE OF JEFFERSON'S FIRMLY HELD VIEW THAT THE CREATION OF A FREE REPUBLIC DEPENDED ON A WIDESPREAD DISTRIBUTION OF PROPERTY AMONG INDEPENDENT OWNERS WHO HELD THEIR LANDS NOT AS FEUDAL ESTATES BUT IN FULL AND ABSOLUTE DOMINION OF NO SUPERIOR WHATEVER ONE CAN ONLY SPECULATE WHAT JEFFERSON WOULD HAVE THOUGHT OF TODAY'S LANDUSECONTROL PLANS WHICH OFTEN LEAVE HIS BELOVED INDEPENDENT LANDOWNERS SUBJECT TO THE ABSOLUTE DOMINION OF BUREAUCRATS CONSERVATIVE OPINION HELD THAT ONLY THOSE WITH PROPERTY COULD BE TRUSTED TO CHOOSE GOVERNMENTS AND THAT THOSE WITHOUT PROPERTY WOULD SIMPLY VOTE THEMSELVES THE PROPERTY OF OTHERS THIS ARGUMENT LED TO AN EXTREMELY SMALL FRANCHISE MR RANDALL ESTIMATES THAT LESS THAN 1 OF THE POPULATION OF VIRGINIA IN 1776 HAD A RIGHT TO VOTE JEFFERSON'S RESPONSE WAS TO RETAIN THE LINK BETWEEN PROPERTY AND SUFFRAGE BUT TO EXPAND THE OPPORTUNITIES TO ACQUIRE PROPERTY ANOTHER INDISPENSABLE STEP WAS THE REPEAL OF THE FEUDAL PRACTICES OF PRIMOGENITURE AND ENTAIL ACCOMPLISHED BY JAMES MADISON IN 1785 WHICH ALLOWED FREE TRANSFER OF LANDS OUTSIDE THE OLD LANDED FAMILIES THE COMBINATION OF JEFFERSON AND SLAVERY REMAINS THE GREAT ENIGMA HOW COULD SUCH A MAN WRITE LOFTY WORDS ABOUT LIBERTY WHILE SUPPORTED BY THE LABOR OF HUNDREDS OF SLAVES MR RANDALL SHOWS HOW OFTEN JEFFERSON'S ATTEMPTS TO CURB OR EXTINGUISH SLAVERY WERE REBUFFED REMEMBERING ONE FAILED EFFORT WHEN ONE CRUCIAL VOTE WAS LOST DUE TO THE ABSENCE OF A DELEGATE JEFFERSON WROTE THE VOICE OF A SINGLE INDIVIDUAL WOULD HAVE PREVENTED THIS ABOMINABLE CRIME FROM SPREADING ITSELF OVER THE NEW COUNTRY THUS WE SEE THE FATE OF MILLIONS UNBORN HANGING ON THE TONGUE OF ONE MAN AND HEAVEN WAS SILENT IN THAT AWFUL MOMENT FEW PUBLIC FIGURES IN OUR HISTORY HAVE PERSEVERED THROUGH SUCH PERSONAL HEARTACHE AS JEFFERSON FOUR OF HIS CHILDREN DIED IN INFANCY AND A FIFTH AS A YOUNG WOMAN HIS WIFE MARTHA ALWAYS WEAK DIED AT 33 CASTING JEFFERSON INTO A PROLONGED STUPOR HIS BELOVED COMPANION AND BROTHERINLAW DABNEY CARR DIED AT 29 HIS FAMILY HOUSE BURNED TO ASHES AND WITH IT HIS ENTIRE EARLY LIBRARY THE CAMPAIGN OF 1800 IN WHICH JEFFERSON WAS ELECTED PRESIDENT WAS SINGULAR EVEN BY CURRENT STANDARDS OF VITRIOLIC ABUSE AND YET THROUGH ALL THESE TRIBULATIONS JEFFERSON PURSUED WITH GENIUS AND SINGLEMINDEDNESS THE GOAL OF CREATING A FREE REPUBLIC POPULATED BY EDUCATED INDEPENDENT PROPERTYOWNING CITIZENS A MODEL FOR ALL THE WORLD FOR ALL TIME HE DID THIS NOT THROUGH ORATORY HE WAS AN INDIFFERENT SPEAKER BUT PRINCIPALLY THROUGH HIS INCANDESCENT WRITING JEFFERSON'S WRITING STYLE SAYS MR RANDALL GIVES US THE SHARPEST SELFPORTRAIT OF THE MAN SOFT IN TONE AND GRACIOUS IN SENTIMENT WHEN HE SPOKE OF HUMAN RIGHTS ANGRY AND SELFRIGHTEOUS WHEN HE CATALOGUED THE CRIMES OF A TYRANNICAL KING MAGNIFICENTLY ROMAN WHEN FORGING IN A SINGLE PARAGRAPH THE CREED OF A NEW NATION HE PLEDGED OUR LIVES OUR FORTUNES AND OUR SACRED HONOR' TO THE GLORIOUS CAUSE JEFFERSON WAS NOT AN ANARCHIST BUT HE FEARED THE UNCHECKED POWER OF THE STATE THE TAX GATHERER THE STANDING ARMY FLOODS OF PAPER MONEY GRANTS OF SPECIAL PRIVILEGE FLATTERERS OF THE COURT AN ARROGANT ARISTOCRACY AN ESTABLISHED CHURCH THE DEAD HAND OF THE PAST STRANGLING THE HOPES OF THE FUTURE TO HIS WRITINGS AMERICANS MIGHT PROFITABLY RETURN MR MCCLAUGHRY A FORMER STATE SENATOR IS PRESIDENT OF THE ETHAN ALLEN INSTITUTE IN CONCORD VT 9309170051 930917 LETTERS TO THE EDITOR BLOOD TEST FOR CANCER A LIFESAVER FOR MANY IN REGARD TO YOUR AUG 25 ARTICLE BLOOD TEST FOR PROSTATE CANCER IS FOUND MORE EFFECTIVE THAN COLON CANCER TEST I AM ALIVE TODAY BECAUSE OF THE CEA BLOOD TEST I FEEL THAT MY EXPERIENCES REGARDING THE TEST ARE SUBSTANTIVE RATHER THAN ANECDOTAL IN MARCH 1989 I WAS OPERATED ON FOR COLON CANCER PRIOR TO SURGERY THE CEA TEST WAS PERFORMED AND INDICATED A HIGH LEVEL FOLLOWING SURGERY THE LEVEL RETURNED TO NORMAL MY PHYSICIANS ADVISED ME I WAS FORTUNATE TO BE IN THAT 5060 OF THE POPULATION IN WHICH THE CEA TEST WAS EFFECTIVE AS PART OF MY MONTHLY CHECKUPS I CONTINUED TO HAVE A CEA TEST IN NOVEMBER 1990 A HIGH CEA LEVEL LED TO DISCOVERY OF AN OTHERWISE UNDETECTABLE LIVER TUMOR WHICH WAS SURGICALLY REMOVED I AM WELL AND WILL CONTINUE TO HAVE A CEA TEST PERFORMED PERIODICALLY I FIND IT QUITE DISTURBING THAT ANYONE WOULD DECIDE THE TEST IS NOT WORTHWHILE SINCE IT ONLY WORKS 59 OF THE TIME THERE IS NO QUESTION IN MY MIND OR MY PHYSICIAN'S THAT THE CEA TEST DETECTED MY RECURRENCE EARLY ENOUGH TO SAVE MY LIFE IN MY CASE THE CEA TEST HAS CERTAINLY BEEN MOST COST EFFECTIVE 9309170050 930917 MARKETING & MEDIA CABLE ACT'S LIMITS ON FIRMS' NUMBER OF SUBSCRIBERS STRUCK DOWN BY COURT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE STRUCK DOWN A PROVISION OF THE 1992 CABLE ACT THAT WOULD HAVE PLACED LIMITS ON HOW MANY SUBSCRIBERS CABLE TELEVISION COMPANIES CAN AMASS THE RULING IF UPHELD COULD SPUR NEW ACQUISITIONS OF CABLE SYSTEMS BY SUCH CABLE GIANTS AS TELECOMMUNICATIONS INC AND TIME WARNER INC THAT HAVE HELD OFF MAKING PURCHASES PARTLY BECAUSE OF THE LAW'S HORIZONTAL INTEGRATION PROVISION IN HIS DECISION JUDGE THOMAS PENFIELD JACKSON OF THE DISTRICT COURT IN WASHINGTON UPHELD THE CABLE ACT'S REGULATION OF CABLE RATES SAYING THOSE RULES WERE WHOLLY UNRELATED TO CONTENT AND DIDN'T VIOLATE THE CONSTITUTION'S FIRST AMENDMENT AND HE UPHELD RULES THAT REQUIRE CABLE OPERATORS TO NEGOTIATE DEALS WITH BROADCAST STATIONS BEFORE CARRYING THEIR SIGNALS ON THE LOCAL CABLE SYSTEM THE HORIZONTALINTEGRATION LIMITATION WAS INTENDED TO PROMOTE COMPETITION BY PREVENTING CABLE SYSTEMS FROM BEING CONCENTRATED IN A FEW HANDS BUT IN HIS RULING JUDGE JACKSON HELD THAT THE RULE VIOLATED THE FIRST AMENDMENT BECAUSE IT WOULD HAVE PREVENTED CABLE OPERATORS FROM REACHING PART OF THEIR POTENTIAL AUDIENCE JUDGE JACKSON CITED A 1936 SUPREME COURT RULING THAT STRUCK DOWN A SALES TAX ON NEWSPAPERS WITH A CIRCULATION OF MORE THAN 20000 COPIES A WEEK THE FIRST AMENDMENT PROTECTS THE RIGHT OF EVERY CITIZEN TO REACH THE MINDS OF ANY WILLING LISTENERS AND THUS THE SPEAKER'S OPPORTUNITY TO WIN THEIR ATTENTION HE WROTE THE CABLE ACT HADN'T SPECIFIED LIMITS ON HORIZONTAL INTEGRATION BUT HAD ORDERED THE FEDERAL COMMUNICATIONS COMMISSION TO COME UP WITH REGULATIONS ESTABLISHING REASONABLE LIMITS ON THE NUMBER OF SUBSCRIBERS A CABLE OPERATOR COULD REACH YESTERDAY'S RULING UPHELD A SEPARATE PROVISION IN THE CABLE ACT REQUIRING THE GOVERNMENT TO ENACT RULES LIMITING VERTICAL INTEGRATION THAT IS OWNERSHIP OF PROGRAMMING BY CABLE OPERATORS TWO MINOR PROVISIONS OF THE CABLE ACT ALSO WERE DECLARED UNCONSTITUTIONAL ONE WOULD HAVE REQUIRED CABLE OPERATORS TO GIVE 30 DAYS' NOTICE BEFORE SHOWING A FREE PREVIEW OF A PREMIUM CHANNEL WITH RRATED OR XRATED MOVIES AND ANOTHER WOULD HAVE REQUIRED DIRECTBROADCAST SATELLITE COMPANIES TO PUT NONCOMMERCIAL EDUCATIONAL PROGRAMMING ON AT LEAST 4 OF THEIR TRANSMISSION CAPACITY THE CHALLENGE HAD BEEN BROUGHT BY A GROUP OF CABLE PROGRAMMERS AND OPERATORS INCLUDING DISCOVERY COMMUNICATIONS DANIELS CABLEVISION INC AND TIME WARNER'S CABLE DIVISION 9309170048 930917 BUSINESS BRIEF WYMANGORDON CO PACT REACHED IN ACQUISITION OF COOPER'S CAMERON UNIT WYMANGORDON CO A WORCESTER MASS MAKER OF FORGED METAL COMPONENTS AND COOPER INDUSTRIES INC SAID THEY REACHED AN AGREEMENT IN PRINCIPLE FOR WYMANGORDON TO BUY COOPER'S CAMERON FORGED PRODUCTS DIVISION THE COMPANIES SAID WYMANGORDON WILL ISSUE 165 MILLION NEW SHARES OF ITS COMMON STOCK TO COOPER AND PAY COOPER 10 MILLION IN CASH THE STOCK TRADED LATE YESTERDAY AT 375 PLACING THE VALUE OF THE TRANSACTION AT ABOUT 719 MILLION IN ITS MOST RECENT QUARTERLY EARNINGS STATEMENT WYMANGORDON REPORTED IT HAD AN AVERAGE OF 18125000 COMMON SHARES LUIS LEON WYMANGORDON'S VICE PRESIDENT OF FINANCE AND TREASURER SAID THE COOPER DIVISION HAD ANNUAL REVENUES OF ABOUT 165 MILLION AND A BOOK VALUE OF ABOUT 135 MILLION COOPER IS A GLOBAL MANUFACTURER OF ELECTRICAL AND OTHER HEAVY INDUSTRIAL PRODUCTS 9309170046 930917 CORRECTION THE SEPT 15 REVIEW OF ROSEMARY MAHONEY'S WHOREDOM IN KIMMAGE IRISH WOMEN COMING OF AGE INCORRECTLY IDENTIFIED THE PUBLISHER THE BOOK IS PUBLISHED BY HOUGHTON MIFFLIN 9309170045 930917 BUSINESS BRIEF GLOBAL MARINE INC CONCERN SEES LOSS EXCEEDING ESTIMATES FOR THIRD QUARTER GLOBAL MARINE INC EXPECTS A THIRDQUARTER NET LOSS SLIGHTLY ABOVE ANALYSTS' EXPECTATIONS OF 28 MILLION OR TWO CENTS A SHARE BECAUSE OF THE AMORTIZATION OF COSTS FROM THE RECENT RELOCATION OF FOUR RIGS JERRY C MARTIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID MR MARTIN SAID THE HOUSTON OFFSHORE DRILLING COMPANY EXPECTS THE COST OF AMORTIZING THE RELOCATION OF THE OIL AND GAS DRILLING RIGS TO ADD ABOUT 35 MILLION TO ITS THIRDQUARTER LOSS THUS HE EXPECTS TO POST A LOSS SLIGHTLY HIGHER THAN ANALYSTS' EXPECTATIONS OF A 28 MILLION DEFICIT IN THE YEAREARLIER THIRD QUARTER GLOBAL MARINE HAD A NET LOSS OF 104 MILLION OR NINE CENTS A SHARE MR MARTIN SAYS HE AGREES WITH ANALYSTS' FORECASTS THAT GLOBAL MARINE WILL RETURN TO PROFITABILITY IN 1994 BUT FOR 1993 MR MARTIN SAID HE EXPECTS THE COMPANY TO REPORT A NET LOSS OF ABOUT 30 MILLION OR 20 CENTS A SHARE ON REVENUE OF ABOUT 245 MILLION 9309170044 930917 REVIEW & OUTLOOK EDITORIAL SIGNAL NEEDED I WANT TO SAY TO MY FELLOW AMERICANS WHEN YOU LIVE IN A TIME OF CHANGE THE ONLY WAY TO RECOVER YOUR SECURITY AND TO BROADEN YOUR HORIZONS IS TO ADAPT TO THE CHANGE TO EMBRACE IT TO MOVE FORWARD NOTHING WE DO NOTHING WE DO IN THIS GREAT CAPITAL CAN CHANGE THE FACT THAT FACTORIES OR INFORMATION CAN FLASH ACROSS THE WORLD THAT PEOPLE CAN MOVE MONEY AROUND IN THE BLINK OF AN EYE NOTHING CAN CHANGE THE FACT THAT TECHNOLOGY CAN BE ADOPTED ONCE CREATED BY PEOPLE ALL ACROSS THE WORLD AND THEN RAPIDLY ADAPTED IN NEW AND DIFFERENT WAYS BY PEOPLE WHO HAVE A LITTLE DIFFERENT TAKE ON THE WAY THAT TECHNOLOGY WORKS FOR TWO DECADES THE WINDS OF GLOBAL COMPETITION HAVE MADE THESE THINGS CLEAR TO ANY AMERICAN WITH EYES TO SEE THE ONLY WAY WE CAN RECOVER THE FORTUNES OF THE MIDDLE CLASS IN THIS COUNTRY SO THAT PEOPLE WHO WORK HARDER AND SMARTER CAN AT LEAST PROSPER MORE THE ONLY WAY WE CAN PASS ON THE AMERICAN DREAM OF THE PAST 40 YEARS TO OUR CHILDREN AND THEIR CHILDREN FOR THE NEXT 40 IS TO ADAPT TO THE CHANGES THAT ARE OCCURRING IN A FUNDAMENTAL SENSE THIS DEBATE ABOUT NAFTA IS A DEBATE ABOUT WHETHER WE WILL EMBRACE THESE CHANGES AND CREATE THE JOBS OF TOMORROW OR TRY TO RESIST THESE CHANGES HOPING WE CAN PRESERVE THE ECONOMIC STRUCTURES OF YESTERDAY I TELL YOU MY FELLOW AMERICANS THAT IF WE LEARN ANYTHING FROM THE COLLAPSE OF THE BERLIN WALL AND THE FALL OF THE GOVERNMENTS IN EASTERN EUROPE EVEN A TOTALLY CONTROLLED SOCIETY CANNOT RESIST THE WINDS OF CHANGE THAT ECONOMICS AND TECHNOLOGY AND INFORMATION FLOW HAVE IMPOSED IN THIS WORLD OF OURS THAT IS NOT AN OPTION OUR ONLY REALISTIC OPTION IS TO EMBRACE THESE CHANGES AND CREATE THE JOBS OF TOMORROW IT HAS BEEN INSPIRING THIS WEEK TO WATCH PRESIDENT CLINTON SEIZE THE LEAD IN THE FIGHT FOR RATIFICATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT HIS STATEMENT AT THE SIGNING CEREMONY FOR THE SIDE AGREEMENTS QUOTED ABOVE ELOQUENTLY AND SUCCINCTLY PUT THE MAIN ISSUE BEFORE THE NATION WILL IT LOOK FORWARD AND LEAD OR LOOK BACKWARD AND STAGNATE HE MADE THIS STATEMENT IN THE COMPANY OF PRESIDENTS BUSH FORD AND CARTER AND SUPPORTED ON THESE PAGES IN THE LAST WEEK BY PRESIDENT REAGAN AS WELL AS SENATOR BILL BRADLEY ONE OF THE MOST SERIOUS AND PUBLIC SPIRITED MEMBERS OF HIS OWN PARTY ON THIS ISSUE THE DIVISION IS NOT BETWEEN REPUBLICANS AND DEMOCRATS BUT BETWEEN OPTIMISTS AND PESSIMISTS BETWEEN AN OPEN VIEW OF THE FUTURE AND A CRABBED ONE THIS OPPORTUNITY TO SUPPORT MR CLINTON HAS BEEN PARTICULARLY COMFORTING FOR THOSE OF US WHO HAVE OPPOSED SO MUCH OF WHAT HE HAS DONE SINCE TAKING OFFICE WE HAVE ONLY ONE PRESIDENT AT A TIME AND ALL AMERICANS MUST WISH HIM WELL FOR ALL THIS UNHAPPILY THERE REMAINS THE QUESTION OF WHETHER THE PRESIDENT WILL STAY THE COURSE HIS PROGRAMS HAVE NOT ALWAYS FOLLOWED HIS RHETORIC AND HIS ADMINISTRATION OBVIOUSLY SUFFERS DIVIDED COUNSEL ON THE ISSUE SO THERE IS A LINGERING SUSPICION THAT HE MAY SUPPORT THE AGREEMENT WITH WORDS AND UNDERCUT IT WITH ACTIONS THIS SUSPICION FEEDS THE REPUBLICAN BACKSLIDING PAUL GIGOT DISSECTS ALONGSIDE IT'S NOT FAIR TO BLAME MR CLINTON OF COURSE FOR THE CRABBINESS OF PAT BUCHANAN OR ROSS PEROT AND REPUBLICANS DESERVE WHAT THEY WILL GET IF THEY CAN'T FIGURE OUT THAT TODAY'S ELECTORATE ABOVE ALL WANTS POLITICIANS TO STAND UP FOR WHAT THEY BELIEVE AND THAT PROTECTIONISM IS THE FOOL'S GOLD OF AMERICAN POLITICS LOSING EVERY TIME IT'S ACTUALLY BEEN TAKEN TO THE POLLING BOOTH STILL BY VIRTUE OF HIS OFFICE THE PRESIDENT IS THE LEADER OF THE NAFTA EFFORT AND NO ONE RESPONDS TO AN UNCERTAIN TRUMPET THE BIGGEST THING PRESIDENT CLINTON COULD DO TO STILL THESE DOUBTS WOULD BE TO REVERSE THE BIGGEST ACTION HE HAS TAKEN TO STIR THEM HE HAS AGREED TO APPEAR AT A FUNDRAISER FOR NAFTA'S MOST OUTSPOKEN OPPONENT ON CAPITOL HILL SENATOR DON RIEGLE OF MICHIGAN THE CLINTON EMBRACE OF THE KEATINGFIVE SENATOR IS SCHEDULED FOR OCT 18 A MONTH TO THE DAY AFTER TOMORROW'S RIEGLEFEST BY ROSS PEROT THE ERSTWHILE OPPONENT OF A MORALLY CORRUPT BELTWAY ESTABLISHMENT DENNIS DECONCINI THE OTHER RINGLEADER IN THE EFFORT TO PROTECT S&L CROOK CHARLEY KEATING FROM FEDERAL REGULATORS WAS HOUNDED FROM POLITICS YESTERDAY ANNOUNCING HE WILL NOT RUN IN 1994 AS POLLS SHOWED HIM 20 POINTS DOWN MR RIEGLE IS ENCOURAGED THAT HIS POLLS HAVE IMPROVED UPON STARTING TO DEMAGOG NAFTA WE HOPE THAT EVERY MEMBER OF UNITED WE STAND READS THE ACCOMPANYING EXCERPTS FROM THE REPORT TO THE SENATE ETHICS COMMITTEE IN EMBRACING MR RIEGLE MR PEROT DOES NOT HAVE MR CLINTON'S EXCUSE OF PARTY LOYALTY STILL HOW CAN ANY DEMOCRATIC CONGRESSMAN CONCLUDE THE PRESIDENT IS SERIOUS ABOUT NAFTA WHEN HE RAISES MONEY FOR SENATOR RIEGLE ESPECIALLY SO SINCE MR RIEGLE IS DEMAGOGING NOT ONLY THE TREATY BUT ITS ADMINISTRATION SUPPORTERS SUGGESTING DURING A FINANCE COMMITTEE HEARING THIS WEEK THAT SECRETARY OF STATE WARREN CHRISTOPHER HAD A CONFLICT OF INTEREST BECAUSE HIS LAW FIRM HAD REPRESENTED MEXICO PRESIDENT CLINTON WOULD DO HIS PARTY A FAVOR IF HE COULD PERSUADE SENATOR RIEGLE TO FOLLOW SENATOR DECONCINI'S LEAD AND GET OUT OF THE WAY SO A CLEAN DEMOCRAT COULD RUN AND HE COULD PROBABLY ENSURE THE PASSAGE OF NAFTA SIMPLY BY CANCELING HIS OCTOBER 18 TRIP TO DETROIT 9309170043 930917 CHIEFS OF EUROPE'S AIRLINES GIVE FLAK ON INDUSTRY'S WOES EC COMMITTEE OF WISE MEN' LISTENS WELL FAILS TO ELICIT ANY CONSENSUS ON SOLUTIONS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN AIRLINE EXECUTIVES SPENT YESTERDAY AFTERNOON TELLING A EUROPEAN COMMUNITY COMMITTEE OF WISE MEN HOW TO CURE THEIR INDUSTRY'S AILMENTS AND TOSSING A FEW BARBS AT ONE ANOTHER IN THE PROCESS THE EXECUTIVES INCLUDED BERNARD ATTALI AIR FRANCE CHAIRMAN WHO ONLY 24 HOURS EARLIER ANNOUNCED THAT THE COMPANY HAD A LOSS OF 38 BILLION FRANCS US6827 MILLION IN THE FIRST HALF MORE THAN IN ALL OF 1992 ALSO PRESENT WAS SIR COLIN MARSHALL CHAIRMAN OF BRITISH AIRWAYS AN AIRLINE THAT CONTINUES HAPPILY TO SHOW PROFITS HE WAS THE TARGET OF RICHARD BRANSON CHAIRMAN OF VIRGIN ATLANTIC AIRWAYS WHO SAID AT THE MEETING THAT MAJOR CARRIERS ARE OFTEN CRUDE AND IMMATURE A CLEAR ALLUSION TO HIS AIRLINE'S BATTLE WITH BRITISH AIRWAYS OVER DIRTY TRICKS COMMITTED AGAINST VIRGIN PREDICTABLY LITTLE WAS AGREED UPON THE THREE MEN AND THE SEVEN OTHER AIRLINE CHAIRMEN WHO SPOKE TO THE WISE MEN HAD NO COMMON VIEWS ON WHY THERE IS TROUBLE IN THE INDUSTRY MR ATTALI OPENED THE DISCUSSION WITH A WIDELY EXPECTED ATTACK ON ULTRALIBERALISM OR USSTYLE DEREGULATION THERE MUST BE A HAPPY MEDIUM BETWEEN BUREAUCRACY AND THE JUNGLE MR ATTALI SAID IN MY OPINION THE AMERICAN EXPERIENCE HAS THE MERIT OF HAVING SHOWN THAT COMPETITION IN ITSELF A SOURCE OF MANY BENEFITS CAN AT TIMES BRING ABOUT THE WORST FLYING IN CLOSE FORMATION WITH MR ATTALI WAS PIERRE GODFROID SABENA'S CHAIRMAN IT WAS LEFT TO THE HEAD OF THE BELGIAN STATE AIRLINE WHICH IS 37OWNED BY AIR FRANCE TO NOTE THAT US DEREGULATION ISN'T HELPING AMR CORP'S AMERICAN AIRLINES AVOID LAYING OFF THOUSANDS OF EMPLOYEES MR GODFROID PUT FORWARD A SERIES OF SPECIFIC PROPOSALS THAT INCLUDED THE CREATION OF AN EC FUND TO PAY THE SOCIAL COSTS SUCH AS UNEMPLOYMENT BENEFITS OF RESTRUCTURING THE AIRLINE INDUSTRY HE ALSO ECHOED OTHER AIRLINE OFFICIALS SUCH AS OTTO LOEPFE SWISSAIR'S CHAIRMAN BY CALLING FOR THE EC TO PERMIT AIRLINES TO JOIN FORCES IN PLANNING THEIR CAPACITY BUT EVEN AS THE WISE MEN MULL THOSE THOUGHTS IN PREPARING A REPORT ON THE INDUSTRY FOR EC TRANSPORT COMMISSIONER ABEL MATUTES THEY MUST WEIGH SEVERAL CONTRADICTORY VIEWS SOME AIRLINES ARGUE THAT THERE IS A CRISIS IN EUROPEAN AVIATION SIR COLIN SAID THEY CALL FOR REREGULATION FOR ALLOWING AIRLINES TO COLLUDE TO RAISE YIELDS AND REDUCE CAPACITY OR FOR SUBSIDIES EITHER FROM MEMBER STATES OR FROM THE COMMUNITY THEY ARE WRONG SIR COLIN INSTEAD SAID THE REAL PROBLEM WITH THE AIRLINE INDUSTRY IS THAT STATES KEEP GIVING MONEY TO FLAG CARRIERS HE FOUND SUPPORT FOR THAT VIEW FROM SIR MICHAEL BISHOP CHAIRMAN OF BRITISH MIDLAND AIRWAYS AND JAN CARLZON CHAIRMAN OF SCANDINAVIAN AIRLINES SYSTEM AS IF DISAGREEMENT HADN'T ALREADY REACHED A PEAK MR BRANSON CLOSED THE HEARINGS BY GIVING THE COMMITTEE THE FULL FORCE OF HIS UNORTHODOX VIEWS HE RAILED AGAINST CLONE CARRIERS AND CALLED FOR A REVOLUTION IN THE WAY LANDING AND TAKEOFF SLOTS AT AIRPORTS ARE LEFT FOREVER IN THE HANDS OF THE AIRLINE MOST OF ALL HE CALLED FOR POLICIES FRIENDLY TO SMALL STARTUP AIRLINES RIPOFF PRICES ON NONCOMPETITIVE ROUTES PREVENT EC CONSUMERS FROM GETTING WHAT THEY WANT MR BRANSON CONTENDED IN COMPETITION A COMPLETELY DOMINANT POSITION MUST BE HELD BY THE CONSUMERS ACROSS THE STREET AT THE BRUSSELS AIRPORT HOWEVER THE CONSUMERS WEREN'T FEELING VERY DOMINANT LARRY OFFILL A NORTH CAROLINA BUSINESSMAN IN TOWN FOR A TEXTILE CONFERENCE COMPLAINED ABOUT BEING CONSTANTLY FORCED AT EUROPEAN AIRPORTS TO TAKE A BUS BETWEEN THE AIRPLANE AND THE TERMINAL IN AIRLINEINDUSTRY LANGUAGE THAT MEANS MR OFFILL THINKS EUROPE'S AIRPORT INFRASTRUCTURE IS INADEQUATE A VIEW REPEATEDLY EXPRESSED BY THE AIRLINE CHAIRMEN BUT MR OFFILL'S REAL COMPLAINT AND THAT OF MANY OTHER PASSENGERS WAS CLEARLY EXPRESSED BY DIDIER FAUCONNIER THE BELGIAN BUSINESSMAN LOOKED LIKE THE IDEAL AIRLINE CUSTOMER WORKING ON HIS LAPTOP COMPUTER WHILE AWAITING A FLIGHT TO PORTUGAL ON HIS NATIONAL AIRLINE IN SHORT HE IS A FULLFARE PAYING PASSENGER HOWEVER MR FAUCONNIER IS ANYTHING BUT A SATISFIED CUSTOMER PRICING STILL REMAINS RIDICULOUSLY HIGH ALTHOUGH I REALIZE THEY AIRLINES ARE LOSING MONEY SAID MR FAUCONNIER HIS SOLUTION CONSOLIDATION I DON'T NEED A NATIONAL AIRLINE MR FAUCONNIER SAID I NEED TO HAVE CHEAP AIR TRANSPORT 9309170042 930917 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED SEPT 10 ACCOUNTED FOR 94 OR AN AVERAGE 243 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 47 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 424 INVOLVED STOCKINDEX ARBITRAGE UP FROM 238 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 533 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 41 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 57 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES COOPER NEFF AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9309170041 930917 MARKETING & MEDIA TCI BERTELSMANN JOIN TO LAUNCH MUSIC SHOPPING CABLE CHANNEL BY MARK ROBICHAUX AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC IS TEAMING WITH GERMANY'S BERTELSMANN AG TO LAUNCH A HYBRID MUSICVIDEO HOMESHOPPING CABLE CHANNEL THAT COULD PROVIDE THE FIRST NATIONAL COMPETITOR TO VIACOM INC'S MTV AND VH1 CHANNELS THE DEAL BRINGS TOGETHER BERTELSMANN MUSIC GROUP ONE OF THE TOP RECORD COMPANIES SINCE ITS 1986 ACQUISITION OF THE FORMER RCA RECORDS AND TCI THE LARGEST CABLE SYSTEM OPERATOR IN THE US THE PARTNERS SAID THE CHANNEL WOULD BE LAUNCHED FIRST IN TCI CABLE HOMES STARTING IN MID1994 ALTHOUGH IT DIDN'T SAY HOW MANY OF TCI'S 10 MILLION CABLE HOMES WOULD RECEIVE THE CHANNEL AT FIRST BERTELSMANN AND TCI SAID THE NEW SERVICE WILL FEATURE CUTTINGEDGE MUSIC AND BE A SHOWCASE FOR BREAKING MUSICAL ACTS FOR MAJOR AND INDEPENDENT RECORD LABELS IN ADDITION THE SERVICE WOULD ALLOW VIEWERS TO BUY MUSICRELATED MERCHANDISE SUCH AS TSHIRTS AND CONCERT TICKETS VIA PHONE ORDERS IT WOULD ALSO SELL LIMITED EDITIONS OF CERTAIN TAPES AND CDS THAT AREN'T AVAILABLE IN STORES THIS CHANNEL IS BEING DESIGNED TO EXPLOIT TO THE FULLEST EXTENT POSSIBLE THE CAPABILITY OF NEW TECHNOLOGY SUCH AS INTERACTIVE CONVERTER BOXES SAID BOB THOMSON A SPOKESMAN FOR TELECOMMUNICATIONS ONE DAY PEOPLE WILL BE ABLE TO USE THEIR REMOTE CONTROLS TO ORDER MUSIC VIDEOS OF THEIR CHOICE AND TO ORDER COLLATERAL PRODUCTS AND SERVICES THE LAUNCH OF THE NEW CHANNEL WHICH DOESN'T HAVE A NAME YET COMES AS THE CABLE INDUSTRY IS PLANNING TO DRAMATICALLY EXPAND ITS PROGRAM OFFERINGS AS PART OF THAT EXPANSION THERE IS LIKELY TO BE INCREASING COMPETITION TO SUCH UNCHALLENGED FRANCHISES AS VIACOM'S MUSIC NETWORKS AND ITS NICKELODEON CHILDREN'S NETWORK TURNER BROADCASTING SYSTEM'S CABLE NEWS NETWORK AND CAPITAL CITIES/ABC'S ESPN SPORTS CHANNELS TCI AND BERTELSMANN HAVE A LONG WAY TO GO TO CATCH UP TO MTV WHICH REACHES SOME 57 MILLION US CABLE HOMES ITS SISTER CHANNEL VH1 REACHES MORE THAN 47 MILLION CABLE HOMES INCLUDING MOST OF TCI'S SYSTEMS BOTH ARE RECOGNIZED BY THE MUSIC INDUSTRY AS THE PREMIERE LAUNCHING PAD FOR NEW SONGS AND TALENT VIACOM AND MTV OFFICIALS WEREN'T AVAILABLE TO COMMENT YESTERDAY HOW THE RECORD INDUSTRY WILL REACT TO THE ANNOUNCEMENT THAT A COMPETITOR SUCH AS BERTELSMANN IS GOING INTO THE MUSIC NETWORK BUSINESS REMAINS TO BE SEEN SONY CORP AND TIME WARNER INC WHICH OWN THE TWO LARGEST RECORD COMPANIES COULDN'T BE REACHED FOR COMMENT MUSIC COMPANIES SUPPLY THEIR VIDEOS FOR FREE TO MTV AND OTHER TV OUTLETS FOR PROMOTIONAL REASONS BERTELSMANN SAID IT HOPES ITS RIVALS WILL SUPPORT ITS NEW SERVICE THERE ARE SO FEW OUTLETS FOR MUSIC COMPANIES TO COMMUNICATE DIRECTLY WITH CONSUMERS ENTERTAIN THEM AND THEN HEAR BACK FROM THEM IMMEDIATELY DECLARED THOMAS MCPARTLAND A SENIOR VICE PRESIDENT OF THE MUSIC GROUP'S BMG VENTURES UNIT BUT HE ADDED THAT BMG HASN'T CONTACTED OTHER RECORD LABELS UNTIL I DO I CAN'T SAY WITH CERTAINTY THAT THEY WILL AIR THEIR VIDEOS ON THE NEW CHANNEL HE SAID SO FAR MTV HASN'T TAKEN ADVANTAGE OF ITS CLOUT TO MOVE INTO DIRECT SALES OF MUSIC MERCHANDISE TO VIEWERS IN PART FOR REASONS THAT MIGHT ALSO BECOME PROBLEMATIC FOR THE TCIBERTELSMANN SERVICE SELLING RECORDS AND OTHER MERCHANDISE FOR EXAMPLE WOULD PUT MTV OR ANY OTHER MUSIC NETWORK IN COMPETITION WITH THE RETAILERS WHICH ARE THE PRIMARY SELLERS OF TAPES CDS AND OTHER PRODUCTS THAT WOULD MUDDY THE TRADITIONAL RELATIONSHIP BETWEEN RECORD COMPANIES AND RETAIL STORES PARTICULARLY FOR BERTELSMANN VIRGIN RETAIL GROUP LTD RECENTLY TEAMED UP WITH BLOCKBUSTER ENTERTAINMENT CORP TO SPEND 100 MILLION TO OPEN MUSIC RETAIL BLOCKBUSTER VIRGIN MEGASTORES IN MAJOR CITIES ACROSS THE COUNTRY IF TCI AND BERTELSMANN GOT INVOLVED WITH A WIDE ARENA OF MERCHANDISE IT WOULD BE A PROBLEM SAID IAN DUFFELL PRESIDENT OF VIRGIN RETAIL GROUP USA AND ASIAPACIFIC BOTH TCI AND BERTELSMANN PLAYED DOWN THE NOTION THAT THEY ARE COMPETING WITH MUSIC STORES OR WITH VIACOM'S MTV AND VH1 THIS ISN'T HEADTOHEAD COMPETITION WITH VIACOM BUT AN ALTERNATIVE MUSIC SERVICE SAID THOMAS MCINTYRE BERTELSMANN MUSIC GROUP'S CHIEF FINANCIAL OFFICER AND CHIEF NEGOTIATOR ON THE JOINT VENTURE THE PARTNERS ALSO SAID THE NEW CHANNEL DOESN'T AIM TO CUT INTO RETAIL SALES OF MUSIC STORES IT'S RECOGNIZED BY BOTH COMPANIES THAT BMG AND OTHERS RELY HEAVILY ON MUSIC STORES TO SELL PRODUCT AND IT IS NOT ANTICIPATED THAT THIS VENTURE WILL ERODE THAT BUSINESS MR THOMSON OF TCI SAID LARRY GERBRANDT AN ANALYST WITH PAUL KAGAN ASSOCIATES INC SAID THE SERVICE SHOULDN'T POSE A GREAT THREAT TO VIACOM HE ALSO QUESTIONED WHETHER THE MTV AUDIENCE WANTS A HOMESHOPPING SERVICE WHILE THEY ARE WATCHING MUSIC VIDEOS THERE'S A SEGMENT OF PEOPLE THAT DON'T WANT TO BE PITCHED WHILE THEY WATCH MUSIC VIDEOS SAYS MR GERBRANDT 9309170040 930917 LETTERS TO THE EDITOR WHY GET IN A FLAP OVER SEXY ADS SEXY SONY AD RILES A NETWORK OF WOMEN AUG 23 IS ANOTHER EXAMPLE OF HOW WOMEN ARE CREATING THEIR OWN PREJUDICE EVER SINCE THE ANITA HILL UPROAR THERE HAS BEEN A CONSTANT STREAM OF PROTESTS ON HOW WOMEN FEEL THEY ARE BEING STEREOTYPED AS BIMBOS IF WE WANT TO BE EQUAL THEN WE MUST ACT EQUAL I DON'T HEAR MEN COMPLAINING ABOUT ADS SUCH AS CALVIN KLEIN WHERE MARKY MARX IS ON BILLBOARDS ALL OVER THE US LOOKING LIKE NOTHING MORE THAN A SEX SYMBOL WHAT IS WRONG WITH A LITTLE BIT OF CHIVALRY WHY CAN'T WOMEN STILL BE WOMEN I HAVE A CAREER IN A MALE DOMINATED INDUSTRY BUT THAT DOESN'T MEAN I ALWAYS HAVE TO OPEN MY OWN DOORS AND PAY FOR MY OWN DATES I AM HAPPY TO BE APPRECIATED AS A WOMAN AND TAKE ON FEMALE ROLES I AM NOT CONDONING THIS TYPE OF ADVERTISEMENT BUT I DON'T THINK WE NEED TO BE SO SENSITIVE IF WE WANT TO BE TAKEN SERIOUSLY WE NEED TO HAVE MORE SELFCONFIDENCE LAURA DOWNEY SAYS I WAS DISGUSTED ABOUT A SONY AD WHY DON'T MS DOWNEY AND OTHERS WHO SEEM SO WORRIED ABOUT SEXIST THINGS COMPLAIN ABOUT FEMALE INFANTICIDE IN CHINA WHERE ARE THE OUTRAGED VOICES AGAINST THOSE IN INDIA WHO ALLOW WOMEN TO BE THROWN ON THE FUNERAL PYRES OF THEIR HUSBANDS HOW ABOUT THE UNEQUAL TREATMENT OF WOMEN IN MOST MIDDLE EASTERN COUNTRIES SOME ARE STONED TO DEATH FOR NOTHING MORE THAN NATURAL ACTS AND DON'T FORGET THOSE THIRD WORLD COUNTRIES WHERE WOMEN ARE ROUTINELY MUTILATED BY CIRCUMCISION WHAT NONSENSE IT IS TO TAKE ONESELF SO SERIOUSLY AND EXPEND ENERGY CRITICIZING SONY'S AD WHICH EMPLOYS FIVE TIMES MORE WOMEN THAN MEN FURTHERMORE A MALE WOULD BE LAUGHED OUT OF THE LOCKER ROOM IF HE WAS HEARD GRIPING ABOUT MALE EXPLOITATION IN ADS IF MS DOWNEY WANTS TO TALK ABOUT REAL PROBLEMS SHE WILL GET SUPPORT FROM ALL OF US WHO CARE ABOUT HUMANKIND GO PICKET RED CHINA AFRICA AND THE MIDDLE EAST WHEN THAT'S CLEANED UP MAYBE WE CAN START ON MADISON AVENUE 9309170039 930917 ONE MAN PERSEVERES IN MISSION TO UPLIFT PEOPLE OF NICARAGUA HEINRICH SENNRICH REPAIRMAN OF THE NATION'S ELEVATORS ENJOYS A SMALL MONOPOLY BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL MANAGUA NICARAGUA STANDING IN THE EMPTY EIGHTH FLOOR OF THE INTERCONTINENTAL HOTEL A SQUAT NEOMAYAN BUILDING WHERE HOWARD HUGHES ONCE LIVED HEINRICH SENNRICH CONTEMPLATES THE RUINS OF DOWNTOWN MANAGUA AND MEDITATES ON THE SWEEP OF THIS VOLCANIC COUNTRY'S TURBULENT HISTORY ELEVATORS HERE REFLECT NICARAGUA MR SENNRICH MUSES THERE ARE FEW ELEVATORS BUT THEN THERE ARE FEW BUILDINGS THERE ARE EXACTLY 16 WORKING ELEVATORS IN THE COUNTRY AS IT HAPPENS AND MR SENNRICH 54 A DIMINUTIVE SWISS WITH A PIXIE GRIN AND STUBBY FINGERS IS ON INTIMATE TERMS WITH ALL OF THEM HE IS THE PROUD OWNER OF ASCENSORES SENNRICH SENNRICH ELEVATORS AND THE COUNTRY'S ONLY PROFESSIONAL ELEVATOR REPAIRMAN THERE USED TO BE AT LEAST 60 ELEVATORS BY MR SENNRICH'S COUNT IN NICARAGUA BUT THE COUNTRY'S INFRASTRUCTURE HAS BEEN HIT HARD BY MODERN TIMES FIRST AND WORST FROM AN ELEVATOR MAN'S POINT OF VIEW WAS THE 1972 EARTHQUAKE WHICH DESTROYED MOST OF DOWNTOWN MANAGUA OVERNIGHT TURNING MANY OF THE COUNTRY'S ELEVATORS INTO SCRAP METAL THE EARTHQUAKE SCARED HOWARD HUGHES OUT OF HIS HOTEL SUITE HE LEFT NICARAGUA SHORTLY AFTERWARD FEAR OF ANOTHER QUAKE AND THE IMPRESSIVE THIEVERY OF STRONGMAN ANASTASIO SOMOZA COMBINED TO ENSURE THAT DOWNTOWN MANAGUA WAS NOT REBUILT THAT DISASTER WAS FOLLOWED IN 1979 BY A POLITICAL EARTHQUAKE MARXIST SANDINISTAS TOPPLED THE 43YEAR SOMOZA KLEPTOCRACY THE SANDINISTAS QUICKLY FACED OFF AGAINST USBACKED CONTRA REBELS DURING EIGHT YEARS OF BLOODY CIVIL WAR THEY ALSO HAD TO CONTEND WITH A US EMBARGO THE COUNTRY SANK INTO BANKRUPTCY FROM WHICH IT HAS BARELY EMERGED MR SENNRICH MIGHT HAVE LEFT MANAGUA ALTOGETHER BUT THE YEAR THAT MR SOMOZA FELL MR SENNRICH ALSO FELL NOT FROM POWER BUT FROM A POWER LINE MR SENNRICH WHO STILL WALKS WITH A SLIGHT LIMP WAS ON CRUTCHES FOR SIX YEARS MAKING THE BEST OF A BAD SITUATION HE FIGURED THERE MIGHT BE OPPORTUNITIES IN MANAGUA ESPECIALLY SINCE EVERYBODY ELSE IN THE ELEVATOR BUSINESS WAS BUSY TRYING TO LEAVE THE COUNTRY HIS MAIN COMPETITOR THE MAN FROM OTIS ELEVATOR CO LEFT THE YEAR MR SOMOZA WAS OUSTED HE WAS FOLLOWED BY THE REPRESENTATIVE OF THE OTHER GIANT IN THE ELEVATOR FIELD SCHINDLER HOLDING AG OF SWITZERLAND SCHINDLER LOOKED UP MR SENNRICH AND HE SOON BECAME THEIR MAN IN MANAGUA POLITICAL TURMOIL AND ECONOMIC HARD TIMES HAVE KILLED OFF MOST OF THE COUNTRY'S REMAINING ELEVATORS FROM TIME TO TIME MR SENNRICH IS ABLE TO RESUSCITATE ONE OF THEM BUT MORE OFTEN HE EFFECTS ORGAN TRANSPLANTS FROM ONE ANTIQUE TO ANOTHER HE KNOWS WHERE ALL THE CARCASSES OF NICARAGUA'S DEFUNCT ELEVATORS ARE BURIED I CAME HERE IN 1961 TO INSTALL THOSE ELEVATORS HE SAYS POINTING TO THE RUINED SHELL OF THE SOCIAL SECURITY BUILDING ON WHOSE ROOF SIT TWO CHUNKS OF SCRAP METAL AT THAT TIME THEY WERE THE MOST MODERN ELEVATORS IN CENTRAL AMERICA IN THOSE DAYS MR SENNRICH WAS JUST STARTING OUT IN THE BUSINESS HAVING OBTAINED HIS DIPLOMA FROM A PRESTIGIOUS GENEVA ELEVATOR ACADEMY HE CAME TO NICARAGUA TO INSTALL ELEVATORS IN A HOSPITAL AND FELL FOR A SECRETARY WHO WORKED THERE ELEVATOR WORK TOOK MR SENNRICH AND HIS NEW BRIDE BACK TO SWITZERLAND THEN TO GERMANY AND ON TO ZAIRE WHERE MR SENNRICH INSTALLED A PERSONAL ELEVATOR IN THE HOME OF THE COUNTRY'S DICTATOR MOBUTU SESE SEKO BUT AT THE URGING OF HIS WIFE MR SENNRICH RETURNED TO NICARAGUA UNDER THE SANDINISTAS THE ELEVATOR BUSINESS WAS IN THE BASEMENT IN 11 YEARS MR SENNRICH REMODELED TWO ELEVATORS AND INSTALLED TWO NEW ONES ONE PROBLEM WAS MONEY ANOTHER WAS THE SANDINISTAS' REVOLUTIONARY ATTITUDE MR SENNRICH RECALLS THAT WHEN HE MADE A BID TO PUT AN ELEVATOR ON THE FIVESTORY BUILDING HOUSING THE FINANCE MINISTRY HE WAS TOLD WE DON'T NEED ELEVATORS FOR FIVE FLOORS WE WILL WALK LIKE REVOLUTIONARIES BUT MR SENNRICH IS AN OPTIMIST UNDER VIOLETA CHAMORRO'S DEMOCRATIC GOVERNMENT HE SAYS THINGS ARE GETTING BETTER THE COUNTRY IS STILL BROKE BUT THE PRIVATIZATION OF STATEOWNED PROPERTIES AND THE RETURN OF SOME CONFISCATED PROPERTIES TO FORMER OWNERS HAVE CREATED A BOOMLET IN ELEVATOR MODERNIZING MR SENNRICH HAS ALREADY REMODELED TWO OF THE NEWLY PRIVATIZED INTERCONTINENTAL'S ELEVATORS AND IS WORKING ON THE THIRD HE PLANS TO BID ON INSTALLING A NEW ELEVATOR AT MONTELIMAR ONCE MR SOMOZA'S SEASIDE MANSION WHICH A SPANISH COMPANY IS TURNING INTO A LUXURY HOTEL HE ALSO PLANS TO BID ANEW ON THE FINANCE MINISTRY WITH FOREIGN AID ACCOUNTING FOR ROUGHLY 600 MILLION OF NICARAGUA'S TOTAL 800 MILLION FOREIGNCURRENCY INCOME MR SENNRICH FIGURES THAT THE NICARAGUAN GOVERNMENT WILL HAVE TO SPRING FOR AN ELEVATOR SO THAT FOREIGN BANKERS AND AID OFFICIALS WON'T HAVE TO CLIMB THE FIVE FLIGHTS OF STAIRS TO THE FINANCE MINISTER'S OFFICE AS IT IS WHEN A FOREIGN VIP COMES TO TOWN MR SENNRICH GOES ON RED ALERT TWO YEARS AGO WHEN THE KING OF SPAIN BLEW THROUGH MANAGUA MR SENNRICH HOLED UP AT THE INTERCONTINENTAL WHERE THE ROYAL PARTY HAD MADE CAMP MR SENNRICH DIDN'T LEAVE THE HOTEL NOT EVEN FOR LUNCH UNTIL THE KING WAS SAFELY ON HIS WAY TO MADRID HE DID THE SAME THING WHEN MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI VISITED MANAGUA LAST FEBRUARY WE ARE ALWAYS WORRIED ABOUT A POSSIBLE MISHAP SAYS JOSE MARIA REYES THE INTERCONTINENTAL'S MAINTENANCE CHIEF EXPLAINING WHY THE HOTEL PAYS EXTRA TO KEEP MR SENNRICH ON SPECIAL DUTY BETTER SAFE THAN SORRY MR SENNRICH USED TO SERVICE THE ELEVATORS AT THE FOURFLOOR PRESIDENTIAL PALACE TOO BUT DURING THE SANDINISTA PERIOD HE QUIT AFTER AN ARGUMENT WITH PALACE GUARDS ABOUT SECURITY HE HASN'T BEEN BACK SINCE SO PRESIDENT CHAMORRO AND HER TOP AIDES RELY ON ONE ANCIENT AND CREAKING OTIS CARGO ELEVATOR TO GET THEM TO THE HIGHEST CIRCLES OF POWER SINCE THE CALL BUTTONS DON'T WORK TO SUMMON THE ELEVATOR A POTENTIAL PASSENGER MUST GET THE ELEVATOR OPERATOR'S ATTENTION BY BANGING ON THE DOOR MR SENNRICH IS NOT ABLE TO LIVE ON ELEVATORS ALONE IN BETWEEN ELEVATORS HE SETS UP REFRIGERATION UNITS ESPECIALLY FOR THE COFFEE BUSINESS STILL ELEVATORS ARE MR SENNRICH'S TRUE LOVE WHEN THERE IS ELEVATOR WORK IT COMES FIRST HE SAYS IT'S MY DUTY MR SENNRICH COULD TAKE THE EASY WAY AND MOVE TO A COUNTRY WHERE THERE ARE MANY ELEVATORS FOR AN ELEVATOR REPAIRMAN TO REPAIR EACH YEAR IN FACT HE VISITS SWITZERLAND FOR A WORKING VACATION BUT HE CONFESSES THAT AFTER FIVE WEEKS IN SWITZERLAND HE IS HAPPY TO RETURN TO MANAGUA IN EUROPE MEN ARE MACHINES FOR WORK BUT THEY DON'T ENJOY LIFE HE SAYS BESIDES IN NICARAGUA HE HAS THE MAKINGS OF AN ELEVATOR DYNASTY MR SENNRICH PLANS TO LEAVE HIS ELEVATOR LEGACY TO HIS NICARAGUANBORN SON WHO IS STUDYING ADVANCED ELEVATOR TECHNOLOGY IN SWITZERLAND MY MOTTO IS LONG LIVE MONOPOLIES MR SENNRICH SAYS 9309170038 930917 ENTERPRISE SMALL FIRMS WIN BIG IN MANY STATEHOUSES THIS YEAR GAINS TALLIED IN HEALTH CARE TAXES BENEFITS TORTS AND PROPERTY RIGHTS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL AS STATES WRAP UP THEIR LEGISLATIVE SESSIONS SMALL BUSINESSES ARE TALLYING AN IMPRESSIVE SCORE CARD FOR 1993 ENTREPRENEURS WON SOME TAX BREAKS AS WELL AS VICTORIES IN HEALTH CARE WORKERS' COMPENSATION AND PRODUCT LIABILITY AND THESE GAINS MAY SPREAD TO OTHER STATES NEXT YEAR BECAUSE LEGISLATIVE ACTION TENDS TO HAVE A RIPPLE EFFECT MOST STATE LAWMAKERS ARE AWARE THAT MOST JOB GROWTH IS COMING FROM SMALL BUSINESSES NOTES RON SNELL FISCAL PROGRAM DIRECTOR AT THE NATIONAL CONFERENCE OF STATE LEGISLATURES IN DENVER THAT MAKES LEGISLATORS MORE WILLING TO ENCOURAGE SMALL BUSINESSES AND TO AVOID DOING ANYTHING THAT MIGHT HURT THEM HERE'S A CLOSER LOOK AT HOW SMALL BUSINESSES FARED IN VARIOUS STATEHOUSES AROUND THE COUNTRY THIS YEAR HEALTH CARE NUMEROUS STATES SOUGHT TO REFORM HEALTH CARE BOTH TEXAS AND FLORIDA FOR INSTANCE PASSED BILLS MAKING IT EASIER FOR SMALL BUSINESSES TO PROVIDE WORKERS WITH HEALTHCARE INSURANCE IN TEXAS BUSINESSES WITH BETWEEN THREE AND 50 EMPLOYEES NOW HAVE GREATER ACCESS TO HEALTH INSURANCE THROUGH A STATEWIDE PURCHASING COOPERATIVE ALLIANCE ALTERNATIVELY SUCH BUSINESSES CAN FORM A PRIVATE COOPERATIVE AMONG OTHER THINGS THE NEW LAW ALSO REQUIRES INSURERS TO RENEW SMALLCOMPANY POLICIES REGARDLESS OF EMPLOYEES' HEALTH CONDITIONS RESTRICTS INSURERS FROM EXCLUDING SMALLBUSINESS EMPLOYEES WITH PREEXISTING CONDITIONS AND LETS THESE EMPLOYEES KEEP THEIR HEALTH INSURANCE WHEN THEY CHANGE JOBS FLORIDA'S NEW STATUTE PERMITS SMALL BUSINESSES TO POOL THEIR BUYING POWER BY FORMING COMMUNITY ALLIANCES THAT CAN NEGOTIATE WITH HEALTHCARE PROVIDERS AND INSURERS SUCH POOLED PLANS WILL BE RUN BY A 17MEMBER BOARD THAT INCLUDES 11 LOCAL BUSINESS REPRESENTATIVES THE PLANS ALSO WILL GATHER DATA ON THE PRICE OF CARE QUALITY AND CUSTOMER SATISFACTION WORKERS' COMPENSATION THIRTEEN STATES APPROVED COST SAVINGS AND OTHER CHANGES IN PROGRAMS THAT PROVIDE COMPENSATION MEDICAL CARE AND LAWYERS' FEES FOR INJURED WORKERS ARKANSAS CALIFORNIA KANSAS NEBRASKA NEVADA NORTH DAKOTA SOUTH DAKOTA OKLAHOMA OHIO PENNSYLVANIA WEST VIRGINIA AND WYOMING ALL APPROVED CHANGES FAVORABLE TO SMALL BUSINESSES ADVOCATES SAY CONNECTICUT KNOWN FOR ITS UNUSUALLY GENEROUS BENEFITS PASSED THE MOST SWEEPING CHANGES SMALLBUSINESS LOBBYISTS REPORT THE CHANGES ARE EXPECTED TO REDUCE A TYPICAL EMPLOYER'S ANNUAL PREMIUM FOR WORKERS' COMPENSATION INSURANCE BY AS MUCH AS 21 IN A LAW THAT TOOK EFFECT JULY 1 THE STATE TRIMMED BENEFITS TO 75 FROM 80 OF A WORKER'S TAKEHOME PAY REDUCED BENEFITS FOR PERMANENT PARTIAL DISABILITY BY ONETHIRD AND REQUIRED HURT EMPLOYEES TO PARTICIPATE IN A MANAGED MEDICAL CARE PLAN WHEN ONE IS AVAILABLE THE STATE ALSO CUT COSTOFLIVING ALLOWANCES AND DROPPED BENEFITS FOR INJURIES FROM VOLUNTARY COMPANY SPORTS OR SOCIAL ACTIVITIES BUT UNIONS ARE EXPECTED TO LOBBY TO UNDO THE CHANGES NEXT YEAR THE SAVINGS CAME AT THE EXPENSE OF INJURED WORKERS ARGUES JOHN OLSEN PRESIDENT OF THE CONNECTICUT AFLCIO TAXES TO THE RELIEF OF MANY SMALLBUSINESS OWNERS MANY STATES GENERALLY HELD THE LINE ON SPENDING AND SOME EVEN OFFERED THEM TAX RELIEF THIS YEAR MICHIGAN REPEALED ITS INHERITANCE TAX WHICH HAD TAXED BETWEEN 2 AND 17 OF AN ESTATE'S VALUE DEPENDING ON AN HEIR'S RELATIONSHIP TO THE DECEASED CONNECTICUT CUT ITS CORPORATE INCOME TAX RATE TO 10 FROM 115 NEW JERSEY PASSED A LAW RECOGNIZING STATE S CORPORATIONS WHICH ARE OFTEN SMALL BUSINESSES FOR THE FIRST TIME UNLIKE THE STATE'S C CORPORATIONS WHOSE PROFITS ARE TAXED AT A 94 ANNUAL RATE S CORPORATION PROFITS WILL BE TAXED AT 24 A YEAR ON THE OTHER HAND THE DEFICITPRONE STATE OF WASHINGTON UNLEASHED A PASSEL OF TEMPORARY AND PERMANENT BUSINESS TAXES THEY HIT US WITH A STEAMROLLER SAYS BARRY STEPHENSON THE WESTERN REGION DIRECTOR FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS IN WASHINGTON DC TAX RATES ON GROSS RECEIPTS OF VARIOUS BUSINESSES NOW GO AS HIGH AS 25 UP FROM A MAXIMUM OF 15 BEFORE THOSE INCREASED TAX RATES INCLUDE A 65 SURCHARGE FOR DOCTORS AND DENTISTS AND ALL NONSERVICE BUSINESSES EXCEPT FOR RETAILERS SOME SERVICES SUCH AS LANDSCAPERS AND FITNESS CLUBS MUST START TO COLLECT A SALES TAX THAT VARIES BETWEEN 7 AND 82 AND SOME SMALL FIRMS MUST PAY A VARIETY OF NEW FEES SUCH AS ONES FOR STORMWATER DISCHARGE PROPERTY RIGHTS IN 27 STATES REALESTATE AGENTS DEVELOPERS FARMERS TIMBER AND MINING COMPANY OWNERS AND OTHERS PUSHED 44 BILLS THAT THEY BELIEVED WOULD HELP TO WIN COMPENSATION FOR OWNERS WHOSE PROPERTY VALUES ARE HURT BY GOVERNMENT REGULATION SAYS THE CONSERVATIVE AMERICAN LEGISLATIVE EXCHANGE COUNCIL IN WASHINGTON OPPONENTS INCLUDING ENVIRONMENTALISTS UNIONS AND CONSUMER ADVOCATES COUNTER THAT THE BILLS WOULD HAVE RAISED COSTLY BUREAUCRATIC OBSTACLES TO AN ARRAY OF ENVIRONMENTAL WORKER SAFETY PUBLIC HEALTH AND OTHER RULES SOME BILLS MODELED AFTER A 1988 REAGAN EXECUTIVE ORDER WOULD HAVE REQUIRED A STATE TO ASSESS WHETHER ITS REGULATIONS INVOLVE TAKING OF PRIVATE PROPERTY UNDER THE US CONSTITUTION OTHER LEGISLATIVE PROPOSALS WOULD HAVE FORCED A STATE TO PAY AN OWNER IF REGULATIONS REDUCED A PROPERTY'S FAIR MARKET VALUE BY A CERTAIN PERCENTAGE INDIANA AND UTAH PASSED SUCH LEGISLATION THIS YEAR JOINING ARIZONA DELAWARE AND WASHINGTON BUT THE UTAH MEASURE EXEMPTS REGULATIONS NECESSARY TO CARRY OUT FEDERAL AND STATE STATUTORY REQUIREMENTS ARIZONA WILL HOLD A REFERENDUM ON ITS NEW LAW NEXT YEAR TORTS SMALL BUSINESSES WON NUMEROUS REVISIONS THIS YEAR OF STATE LAWS INVOLVING PRODUCT LIABILITY THE MOST NOTABLE PASSED IN TEXAS PROTECTS MERCHANTS WHOLESALERS AND OTHER SELLERS FROM PRODUCTLIABILITY LAWSUITS AS LONG AS THEY DIDN'T PLAY A ROLE IN DESIGNING OR MAKING THE DISPUTED PRODUCT OF COURSE SMALL BUSINESSES ALSO EXPERIENCED SOME LEGISLATIVE SETBACKS DURING 1993 RESTAURANT OWNERS FOR INSTANCE FAILED TO THWART A NATIONAL DRIVE TO LOWER THE DEFINITION OF LEGAL INTOXICATION NEW MEXICO KANSAS NEW HAMPSHIRE FLORIDA NORTH CAROLINA AND HAWAII PASSED LAWS LOWERING THE LIMIT TO 008 GRAMS OF ALCOHOL PER 100 MILLILITERS OF BLOOD FROM 010 GRAMS MORE THAN DOUBLING THE NUMBER OF STATES MANDATING THE 008 LEVEL ACCORDING TO THE NATIONAL RESTAURANT ASSOCIATION 9309170037 930917 INTERNATIONAL JAPAN OFFERS NEW STIMULUS PLAN BUT MANY SAY EFFORT LACKS PUNCH CRITICS DON'T SEE SPENDING DEREGULATION MEASURES ENDING ECONOMIC SLUMP BY MICHAEL WILLIAMS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S GOVERNMENT UNVEILED YET ANOTHER PACKAGE OF SPENDING AND DEREGULATION MEASURES MEANT TO SPUR THE LAGGING ECONOMY BUT ANALYSTS QUESTIONED WHETHER THE STEPS WILL DELIVER A SIGNIFICANT PAYOFF IN HIS FIRST CRACK AT COMBATING JAPAN'S DEEPENING ECONOMIC MALAISE PRIME MINISTER MORIHIRO HOSOKAWA OUTLINED A STIMULUS PACKAGE VALUED AT 615 TRILLION YEN 5857 BILLION THAT INCLUDES 1 TRILLION YEN FOR SOCIAL INFRASTRUCTURE THE MEASURES DIDN'T INCLUDE AN INCOMETAX CUT A STEP JAPANESE BUSINESS LEADERS AND WASHINGTON HAD SOUGHT AS A WAY TO BOOST CONSUMER SPENDING AND DEMAND FOR IMPORTS IN WASHINGTON US TREASURY SECRETARY LLOYD BENTSEN SAID HE WAS ENCOURAGED BY THE DEREGULATION PROGRAM BUT THAT MORE STEPS WOULD BE NEEDED TO GET THE JAPANESE ECONOMY BACK ON ITS FEET I HOPE THESE MEASURES COMBINED WITH APPROPRIATE MONETARYPOLICY ACTIONS TAX REFORM AND THE FISCAL 1994 BUDGET WILL HELP GET JAPAN'S ECONOMY MOVING AND BRING DOWN THE TRADE SURPLUS MR BENTSEN SAID MR HOSOKAWA WHO CAMPAIGNED ON AN AMBITIOUS PLATFORM TO REMAKE JAPANESE GOVERNMENT ALSO OUTLINED MEASURES TO CURB THE REGULATORY POWERS OF JAPAN'S ENTRENCHED BUREAUCRACY CRITICS SAY RED TAPE STIFLES COMPETITION DISCOURAGES IMPORTS AND KEEPS JAPAN'S PRICES SKYHIGH MR HOSOKAWA ALSO PRESENTED CUTS IN UTILITY RATES AND DOMESTIC AIR FARES DESIGNED TO PASS ON TO CONSUMERS THE BENEFITS OF THE HIGH YEN SINCE HE TOOK OFFICE LAST MONTH MR HOSOKAWA HAS ENJOYED RECORD POPULARITY AND RAISED HOPES OF REAL CHANGE IN JAPAN BUT THE NEW PACKAGE DREW A LUKEWARM RESPONSE FROM ECONOMISTS CONSUMERS AND EVEN SOME GOVERNMENT OFFICIALS MY SENSE IS THAT THE STIMULUS PACKAGE WON'T HAVE TOO MUCH IMPACT ON THE ECONOMY SAID A FINANCE MINISTRY OFFICIAL AND NOBUYUKI SAJI OF NIKKO RESEARCH CENTER WHO SAID THE LATEST STEPS LACKED POWER ESTIMATED THE PACKAGE WILL ACTUALLY INJECT ONLY ABOUT 2 TRILLION YEN IN FRESH PUBLICWORKS SPENDING INTO THE ECONOMY MUCH OF THE REST OF THE PACKAGE IS GOVERNMENT LENDING OVERALL HE SAID THE PACKAGE MAY NUDGE UP THE GROSS NATIONAL PRODUCT BY ABOUT FOURTENTHS OF A PERCENTAGE POINT THAT WOULDN'T BE ENOUGH TO SNAP THE ECONOMY OUT OF ITS FUNK ECONOMISTS ADDED HOWEVER THAT THE ADDITIONAL DEREGULATION MEASURES IN THE PACKAGE COULD HELP THE ECONOMY IN THE LONG RUN TWO MUCH LARGER ECONOMIC PACKAGES WORTH A COMBINED 24 TRILLION YEN WERE ROLLED OUT IN THE PAST YEAR BUT HAVEN'T DONE MUCH TO HALT THE ECONOMY'S SLIDE ANNOUNCEMENT OF THE LATEST PACKAGE FOLLOWED BY TWO DAYS THE RELEASE OF DATA SHOWING THAT JAPAN'S ECONOMY SHRANK AT AN ANNUAL PACE OF 2 IN THE APRILJUNE QUARTER THE MORE LIMITED SCOPE OF THE LATEST STEPS SUGGESTS THAT MR HOSOKAWA IS PURSUING A PRAGMATIC STRATEGY OF SEEKING MEASURES THAT SHOULD READILY WIN THE APPROVAL OF LEGISLATORS AND POWERFUL BUREAUCRATS ASKED IF HE THOUGHT THE PACKAGE WAS SUFFICIENT TO TURN AROUND THE ECONOMY HE SAID WE DON'T THINK THIS IS ENOUGH BUT WE UNDERSTAND THAT WE ARE DOING THE MAXIMUM POSSIBLE NOW MOST MEASURES IN THE PACKAGE WILL TAKE EFFECT BY THE END OF MARCH SAID AN OFFICIAL WHO OUTLINED THE PROGRAM TO REPORTERS THOUGH MR HOSOKAWA HAS PUBLICLY BLASTED THE BUREAUCRACY FOR STIFLING CHANGE OFFICIALS SAY HIS NEW GOVERNMENT ALSO SEEMS TO BE TAKING A SOFTER APPROACH I WAS EXPECTING A MORE DRASTIC CHANGE FROM THE HOSOKAWA ADMINISTRATION SAID THE FINANCE MINISTRY OFFICIAL BUT IT SEEMS LIKE THE PRIME MINISTER IS TRYING TO BUILD ON THE CURRENT SYSTEM NOT CHANGE EVERYTHING OBSERVERS SAY THE NEW GOVERNMENT REALIZES IT NEEDS THE BUREAUCRACY'S HELP TO IMPLEMENT ITS AMBITIOUS POLICIES NOTABLY A 15MEMBER PANEL PREPARING FURTHER DEREGULATION MEASURES FOR MR HOSOKAWA INCLUDES SIX FORMER BUREAUCRATS ANOTHER CONSTRAINT ON MR HOSOKAWA IS THE NEED TO HOLD TOGETHER HIS FRAGILE COALITION THERE ARE DEEP DIFFERENCES OVER ECONOMIC POLICY WITHIN THE ALLIANCE WHICH BRINGS TOGETHER SOCIALISTS AND CONSERVATIVE FORMER LDP MEMBERS THE GOVERNMENT'S SINGLE POINT OF UNANIMOUS AGREEMENT IS THE NEED FOR POLITICAL REFORM NOT SWEEPING ECONOMIC CHANGE PARLIAMENT OPENS A SPECIAL SESSION TODAY THAT IS EXPECTED TO CONCENTRATE ON LEGISLATION TO REMAKE JAPAN'S BYZANTINE ELECTORAL SYSTEM WHICH CRITICS SAY BREEDS SCANDAL UNTIL MR HOSOKAWA'S GOVERNMENT SHOWS IT CAN PASS POLITICAL REFORM THE BUREAUCRATS AND OTHERS WON'T TAKE IT SERIOUSLY ENOUGH TO MAKE OTHER CHANGES SOME OBSERVERS SAY IN ADDITION TO THE 1 TRILLION YEN IN NATIONAL PUBLIC SPENDING ON ITEMS SUCH AS MUSEUMS AND FACILITIES FOR THE HANDICAPPED THE NEW PACKAGE CALLS FOR 500 BILLION YEN IN EXTRA LOCAL GOVERNMENT SPENDING AND 450 BILLION YEN IN RELIEF FOR RECENT NATURAL DISASTERS IT ALSO FEATURES 29 TRILLION YEN IN LOWINTEREST HOME FINANCING STRONG DEMAND FOR HOUSING HAS BEEN ONE OF THE ECONOMY'S FEW BRIGHT SPOTS THE GOVERNMENT ALSO PROVIDED DETAILS ON 94 DEREGULATION MEASURES MANY ANNOUNCED EARLIER THIS MONTH WHICH INCLUDE ALLOWING THE ESTABLISHMENT OF SMALL BREWERIES AND EASING JAPAN'S STRICT AUTOINSPECTION REQUIREMENTS IT ALSO OUTLINED STEPS TO PASS ON TO CONSUMERS THE BENEFITS OF THE STRONG YEN WHICH MAKES ENERGY AND OTHER IMPORTS CHEAPER GAS UTILITIES FOR INSTANCE WILL CUT THEIR MONTHLY RATES BY AN AVERAGE OF 135 YEN 128 PER HOUSEHOLD WHILE THE GOVERNMENT TOUTED THE PROGRAM AS A BOON FOR CONSUMERS A QUICK SURVEY OUTSIDE TOKYO STATION RAIL TERMINAL FOUND MANY SKEPTICS MAKOTO USAMI A 48YEAROLD ELECTRONICS WORKER SAID HE THOUGHT THE PACKAGE WOULD FAIL TO CREATE A MOOD FOR CONSUMERS TO START SPENDING MONEY WITH TWO CHILDREN TO SUPPORT HE SAID I HAVE TO BE THRIFTY MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE TOTAL NEW SPENDING IS 615 TRILLION YEN 5857 BILLION EXCLUDING TAX BREAKS SOME 30 ITEMS ARE ADDED TO DEREGULATIONS ANNOUNCED IN EARLY SEPTEMBER BRINGING THE TOTAL TO 94 WINDFALL BENEFITS FROM THE STRONG YEN SUCH AS CUTS IN UTILITY CHARGES AND DOMESTIC AIR FARES WILL BE PASSED ON TO JAPANESE CONSUMERS ABOUT 95 BILLION WILL BE SPENT TO IMPROVE JAPAN'S SOCIAL INFRASTRUCTURE AN ADDITIONAL 428 BILLION WILL HELP RESTORE AREAS DAMAGED BY NATURAL DISASTERS HOUSINGRELATED LOANS WILL BE EXPANDED BY THE HOUSING LOAN CORP AN EXTRA 95 BILLION WILL BE EARMARKED TO HELP SMALL STRUGGLING COMPANIES THE GOVERNMENT WILL PROVIDE SUBSIDIES TO IMPROVE BENEFITS FOR LAIDOFF WORKERS TAX INCENTIVES WILL BE EXPANDED IN HOUSING EDUCATION AND CORPORATE INVESTMENT 9309170035 930917 CONVEX PLANS SYSTEMS BASED ON HARDWARE OF OTHER COMPANIES A WALL STREET JOURNAL NEWS ROUNDUP CONVEX COMPUTER CORP EXPANDING ITS BUSINESS BEYOND SUPERCOMPUTER MANUFACTURING WILL START SELLING DATA STORAGE AND MANAGEMENT SYSTEMS BASED IN LARGE PART ON OTHER COMPANIES' HARDWARE EXECUTIVES SAID IN AN INTERVIEW THEY SAID THE NEW DATASERIES INCLUDES FILESERVER COMPUTERS MADE BY IT OR BY HEWLETTPACKARD CO WITH WHICH IT HAS A NUMBER OF MARKETING AND DEVELOPMENT AGREEMENTS THOSE SERVERS ARE LINKED TO TAPE STORAGE SYSTEMS IN WHICH ROBOTIC ARMS RETRIEVE DATA TAPES ON DEMAND THOSE ROBOTIC TAPE LIBRARIES ARE MADE BY SUCH COMPANIES AS ESYSTEMS AND STORAGE TECHNOLOGY CORP CONVEX'S DATASERIES ALSO INCLUDES SOFTWARE FOR MANAGING THE LIBRARIES FROM SOFTWARE VENDORS THIS IS AN EXTENSION IN OUR TRADITIONAL CUSTOMER BASE AND IT ALLOWS US INCREMENTAL GROWTH IN NEW MARKETS SAID JIM BLATHAZAR VICE PRESIDENT MARKETING OF CONVEX WHICH IS BASED IN RICHARDSON TEXAS COMPANIES WANT A ONESTOP SOLUTION AND WE'RE THE ONLY COMPANY OUT THERE OFFERING THAT HE ESTIMATED THAT THERE IS A 2 BILLIONAYEAR MARKET FOR SUCH INTEGRATED STORAGE SYSTEMS THOMAS JONES VICE PRESIDENT AND MANAGER OF THE DATA MANAGEMENT SYSTEMS BUSINESS SAID THE LOWEND SYSTEMS BASED ON HEWLETTPACKARD COMPUTERS COULD COST AS LITTLE AS 150000 HIGHEND SYSTEMS USING A CONVEX C3 SUPERCOMPUTER AND SEVERAL TAPE LIBRARIES COULD COST AS MUCH AS 5 MILLION THE EXECUTIVES DECLINED TO PREDICT HOW MUCH BUSINESS THE DATASERIES WILL AMOUNT TO MR JONES SAID DATASERIES ENGINEERING COSTS ARE NOMINALLY 10 OF THE RESEARCH AND DEVELOPMENT BUDGET CONVEX COULD USE A BOOST THE COMPANY REPORTED A WIDERTHANEXPECTED NET LOSS OF 418 MILLION OR 167 A SHARE AFTER A 315 MILLION CHARGE FOR RESTRUCTURING IN THE QUARTER ENDED JUNE 30 REVENUE IN THAT QUARTER FELL 22 TO 451 MILLION FROM 575 MILLION THE YEAR BEFORE THE ENTIRE SUPERCOMPUTER MARKET HAS BEEN HURT BY THE SLOW ECONOMY WORLDWIDE DECLINING DEFENSE SPENDING AND BRUTAL COMPETITION FROM NEW COMPANIES TRYING TO CAPTURE MARKET SHARE BY SLASHING PRICES 9309170034 930917 DIXONS' STOCK JUMPS ON NEWS OF SALE OF CHAIN BRITISH CONCERN IS SELLING UNPROFITABLE SILO STORES IN US TO FRETTER INC BY SHOBA PURUSHOTHAMAN SPECIAL TO THE WALL STREET JOURNAL LONDON THE STOCK OF BRITISH ELECTRONICS RETAIL CONCERN DIXONS GROUP PLC CLIMBED 12 ON NEWS THAT THE COMPANY FINALLY HAS UNLOADED ITS UNPROFITABLE US CHAIN SILO HOLDINGS INC DIXONS SHARES ON THE LONDON STOCK EXCHANGE JUMPED TO 260 PENCE 402 FROM 233 PENCE THE PREVIOUS DAY EVERYONE HAD REGARDED SILO AS SOMETHING THAT HAD THE POTENTIAL TO BE A BOTTOMLESS PIT A FLAW IN DIXONS HAS FINALLY BEEN REMOVED SAYS ROBERT SNAITH ANALYST AT SOCIETE GENERAL STRAUSS TURNBULL LTD DIXONS IS SELLING SILO TO FRETTER INC OF THE US A CONSUMER ELECTRONICS AND APPLIANCE RETAILER IN EXCHANGE FOR 45 MILLION OF PREFERRED STOCK AND A 30 STAKE IN FRETTER WHICH IS BASED IN LIVONIA MICH TWOTHIRDS OF THE PREFERRED STOCK IS CONVERTIBLE AND IF DIXONS EXERCISES THIS OPTION IT WILL OWN 49 OF FRETTER DIXONS ALSO WILL MAKE AVAILABLE TO FRETTER A SECURED STANDBY CREDIT FACILITY FOR AS MUCH AS 40 MILLION DIXONS BOUGHT SILO IN 1987 FOR 245 MILLION IN 1992 THE 180 STORES TURNED IN A LOSS OF 224 MILLION 346 MILLION THE COMPANY DECIDED IN EARLY 1992 TO REVIEW ITS INTERESTS IN SILO AND HAD BEEN ENGAGED IN A RESTRUCTURING PROGRAM SINCE THEN DIXONS CONCEDED THAT SILO WON'T RETURN TO PROFITABILITY ANY TIME SOON THIS IS A VERY CLEVER DEAL SAID A BANKER FAMILIAR WITH THE TRANSACTION NO ONE WOULD HAVE BOUGHT SILO OUTRIGHT AND THIS IS A PRETTY GOOD COMPROMISE THE SALE PROMPTED UK ANALYSTS TO UPGRADE THEIR PROFIT FORECASTS FOR DIXONS MOST ANALYSTS ARE LEAVING ESTIMATES FOR THE CURRENT YEAR INTACT BUT MOVED TO INCREASE THE NEXT FISCAL YEAR'S EARNINGS ESTIMATES BY MORE THAN 10 THE CURRENT FISCAL YEAR FOR DIXONS BEGAN IN MAY ESTIMATES FOR PRETAX PROFIT WERE INCREASED BY MORE THAN 10 FOR A RISE OF ABOUT 15 MILLION TO 20 MILLION TO AROUND 110 MILLION TO 115 MILLION PROMPTING THE STOCK REACTION THE TERMS OF THE TRANSACTION LIMIT DIXON TO 50 MILLION IN LOSSES BUT BECAUSE OF THE CONVERTIBLE SHARES DIXONS CAN ENJOY ANY POSITIVE MOVES BY TAKING UP ITS 49 STAKE IN FRETTER IF THE US CONCERN MAKES A VIABLE BUSINESS OUT OF SILO ROBERT SHRAGER DIXONS CORPORATE FINANCE DIRECTOR SAID THAT IF IT ALL GOES WRONG WE HAVE A DOWNSIDE LIMIT ON OUR EXPOSURE OF 50 MILLION BUT IF IT ALL GOES WELL WE CAN TAKE ADVANTAGE OF CONVERTING OUR SHARES FOR A 49 STAKE IN FRETTER FRETTER IS TO MERGE ITS OPERATIONS WITH SILO'S AND RENAME THE STORES A COMMON WHOLESALING AND DISTRIBUTION NETWORK IS EXPECTED TO SIGNIFICANTLY BOOST THE VENTURE'S CHANCES OF SUCCESS FRETTER REPORTED A PRETAX PROFIT OF 87 MILLION ON SALES OF 3616 MILLION FOR THE YEAR ENDED JAN 31 THE COMPANY'S CURRENT CAPITALIZATION IS ABOUT 44 MILLION THE TRANSACTION IS SCHEDULED TO BE COMPLETED IN OCTOBER OR NOVEMBER THE SALE OF THE UNIT WILL RESULT IN DIXONS TAKING AN ESTIMATED CHARGE OF 198 MILLION FOR THE CURRENT FISCAL YEAR DIXONS WILL ALSO BE WRITING OFF 1911 MILLION AGAINST GOODWILL 9309170033 930917 BUSINESS BRIEF BURLINGTON INDUSTRIES EQUITY INC TWO PLANTS AND 290 JOBS TO BE CUT IN RESTRUCTURING BURLINGTON INDUSTRIES EQUITY INC GREENSBORO NC SAID 290 JOBS WILL BE ELIMINATED AS THE TEXTILE CONCERN CLOSES A KNITTING AND FINISHING PLANT IN STATESVILLE NC OVER THE NEXT FOUR TO SIX MONTHS THE MOVE IS PART OF A RESTRUCTURING PROGRAM THAT WILL ALSO CREATE APPROXIMATELY 100 NEW POSITIONS AT TWO OTHER NORTH CAROLINA PLANTS IN BURLINGTON'S KNITTEDFABRICS DIVISION A COMPANY SPOKESMAN SAID YESTERDAY THE COMPANY HAS 23400 EMPOYEES AFTER PAYING ABOUT 10 MILLION IN RESTRUCTURING COSTS WHICH WILL BE RECORDED IN THE COMPANY'S FOURTH QUARTER BURLINGTON EXPECTS TO ACHIEVE THE SAME VOLUME IN ITS KNITTED FABRICS DIVISION YET AT A LOWER COST THE SPOKESMAN SAID THE KNITTED FABRICS DIVISION IS ONE OF FIVE APPAREL DIVISIONS AT BURLINGTON WHICH REPORTED REVENUE OF 2 BILLION IN 1992 THE APPAREL DIVISIONS ACCOUNTED FOR 64 OF LAST YEAR'S SALES 9309170032 930917 INDUSTRY FOCUS FOODCOMPANY BUYING SPREE MAY BE JUST AN APPETIZER DECLINING PROFITS AND LOW INTEREST RATES COULD SPUR MORE ACQUISITIONS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL FOOD COMPANIES ARE GEARING UP FOR A SHOPPING SPREE A SCREECHING SLOWDOWN IN THE INDUSTRY'S PROFITS COMBINED WITH SHARPLY LOWER INTEREST RATES HAS FOSTERED A RASH OF FOODCOMPANY MINIMERGERS AND ACQUISITIONS AND MORE ARE EXPECTED FOR MUCH OF THE 1980S FOOD CONCERNS RELIED ON PRICE INCREASES TO POST HANDSOME PROFIT GAINS BUT PINCHED SHOPPERS HAVE DROPPED EXPENSIVE BRANDS IN FAVOR OF HIGHQUALITY PRIVATELABEL ALTERNATIVES STRIPPED OF THE ABILITY TO INCREASE PROFITS THROUGH HIGHER PRICES FOOD EXECUTIVES ARE NOW ON THE PROWL FOR ACQUISITIONS A LOT OF COMPANIES ARE DESPERATE FOR GROWTH SAYS DAVID W JOHNSON PRESIDENT AND CHIEF EXECUTIVE OF CAMPBELL SOUP CO CAMPBELL IS ONE OF THEM EARLIER THIS YEAR IT BOUGHT A CONTROLLING STAKE IN AUSTRALIAN COOKIE GIANT ARNOTTS LTD AND IS NOW ACTIVELY SCOUTING FOR MORE ACQUISITIONS IF THE OPPORTUNITY COMES WE WILL NOT HESITATE TO STRIKE MR JOHNSON SAYS LOWER INTEREST RATES ARE PART OF THE LURE WITH THE COST OF MONEY STEADILY DROPPING CAMPBELL'S MR JOHNSON SAYS WE CAN VERY EASILY GET OUR HANDS ON A LOT OF MONEY 1 BILLION TO 2 BILLION OVERSEAS ACQUISITIONS WILL BE THE HIGHEST PRIORITY FOR CAMPBELL AS IT TRIES TO INCREASE ITS PRESENCE IN FASTERGROWING FOREIGN MARKETS TARGETS ARE LIKELY TO BE COMPANIES WITH STRONG REGIONAL BRANDS THAT COMPLEMENT CAMPBELL'S STRENGTHS IN SOUP CRACKERS AND COOKIES KONRAD SCHLATTER CHIEF FINANCIAL OFFICER OF CPC INTERNATIONAL INC IN ENGLEWOOD CLIFFS NJ SAYS THE LOW RATES HAVE MADE COMPETITION FOR ACQUISITIONS A LOT STRONGER THAN IT HAS BEEN IN AUGUST CPC INTERNATIONAL BOUGHT 85 OF PFANNIHERKE OTTO ECKART KG A LARGE POTATO COMPANY BASED IN MUNICH GERMANY THE PRESSURES FROM PRIVATE LABELS OR STORE BRANDS ALSO HAVE MADE IT A PAINFUL YEAR FOR FOODCOMPANY INVESTORS THE STOCKS OF KELLOGG CO AND CONAGRA INC FOR EXAMPLE ARE EACH DOWN MORE THAN 20 FOR THE YEAR WHILE STOCKS OF HJ HEINZ CO AND RALSTONPURINA CO HAVE SLID MORE THAN 15 THE DEPRESSED VALUES HAVE GENERATED A ROUND OF BARGAINHUNTING IT'S A GOOD TIME FOR BUYERS SAYS A DIRECTOR OF A LARGE FOOD COMPANY A CHANGE IN US TAX LAWS THIS YEAR GIVING COMPANIES MORE FAVORABLE TREATMENT WHEN THEY BUY ASSETS AT MORE THAN BOOK VALUE IS ALSO LIKELY TO SPUR MERGERS AND ACQUISITIONS ACTIVITY AMONG THE RECENT DEALS LAST WEEK CADBURY SCHWEPPES PLC AGREED TO BUY A&W BRANDS INC FOR 334 MILLION IN ADDITION THE BRITISH BEVERAGE AND CANDY COMPANY HAS AMASSED A 26 STAKE IN DR PEPPER/SEVENUP COS IN RECENT MONTHS ALSO LAST WEEK UNILEVER NV AGREED TO BUY THE ICE CREAM BUSINESS OF PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT FOR AN ESTIMATED 200 MILLION TO 300 MILLION IN AUGUST BESIDES THE ACQUISITION BY CPC INTERNATIONAL HERSHEY FOODS CORP GOBBLED UP HJ HEINZ'S ITALIAN CANDY OPERATIONS THERE IS NO DOUBT THE PACE OF DEALS HAS PICKED UP SAYS JOHN MCMILLIN FOOD ANALYST AT PRUDENTIAL SECURITIES INC THE FEEDING FRENZY OF THE 1980S HOWEVER ISN'T LIKELY TO RETURN BILLIONDOLLAR TAKEOVERS HAVE BEEN SUPPLANTED BY FILLIN DEALS WITH PRICES OF 500 MILLION OR LESS THE AIM FOR THE BUYERS IS TO AUGMENT CORE BUSINESSES WHILE THE DEALS GIVE SELLERS A CHANCE TO STREAMLINE BY CULLING WEAK OR PERIPHERAL OPERATIONS THERE WILL BE MORE SELLING OF PIECES NOT WHOLE PIES SAYS PRUDENTIAL'S MR MCMILLIN THE UNILEVER ACQUISITION OF PHILIP MORRIS'S ICE CREAM BUSINESS IS A CASE IN POINT UNILEVER AS THE ICE CREAM LEADER IN EUROPE HAS FAR MORE INTEREST AND EXPERTISE IN THE LOWMARGIN CATEGORY THAN PHILIP MORRIS WHOSE BREYERS AND SEALTEST LINES HAD BEEN BUFFETED BY PREMIUM BRANDS SUCH AS BEN & JERRY'S AS WELL AS LOWPRICED PRIVATE LABELS MARKET SHARES OF BOTH BREYERS AND SEALTEST HAVE STAGNATED IN RECENT YEARS WITH PROFIT MARGINS REMAINING IN THE LOW SINGLEDIGITS PHILIP MORRIS WITH ITS CORE TOBACCO BUSINESS UNDER PRESSURE IS EXPECTED TO DUMP OTHER UNDERPERFORMING ASSETS IN THE MONTHS AHEAD GIVEN THE INDUSTRY'S DOLDRUMS A FEW ANALYSTS EVEN FORESEE A RETURN TO MORE PREDATORY TIMES TAKEOVER ACTIVITY WILL HEAT UP PREDICTS CAROLINE S LEVY A FOOD ANALYST WITH LEHMAN BROS WITH FOOD STOCKS PERFORMING MISERABLY FOR THE PAST 18 MONTHS MS LEVY IS TELLING CLIENTS THAT ACQUISITIONS MAY BRING INTEREST BACK INTO THE GROUP FOREIGN GIANTS UNILIVER AND NESTLE SA ARE BOTH CASHRICH AND ACQUISITIVE ONE SCENARIO DISCUSSED BY ANALYSTS HAS UNILEVER SWOOPING DOWN TO DEVOUR BORDEN INC A COMPANY WITH STRONG BRANDS SUCH AS CREMORA AND CRACKER JACK BUT POOR EARNINGS BORDEN WHICH HAS UNDERGONE A SERIES OF INEFFECTUAL REORGANIZATIONS IN RECENT YEARS HAS POSTED EIGHT STRAIGHT QUARTERS OF EARNINGS DECLINES ITS STOCK IS TRADING AROUND 18 DOWN FROM A 52WEEK HIGH OF 2950 BORDEN HAD NO COMMENT AND UNILEVER DECLINES TO COMMENT ON ITS ACQUISITIONS STRATEGY ANOTHER POSSIBLE TARGET IS CPC WITH PRODUCTS SUCH AS HELLMANN'S MAYONNAISE MAZOLA CORN OIL AND SKIPPY PEANUT BUTTER THAT WOULD DOVETAIL NICELY WITH UNILEVER'S HEAVY CONCENTRATION IN MARGARINES FATBASED SPREADS OILS AND CHEESES ANALYSTS SAY CPC SAYS THAT WHILE IT WILL ALWAYS DO ITS BEST FOR SHAREHOLDERS IT WASN'T CONCERNED ABOUT BEING PURSUED OTHER POSSIBLE TARGETS FOR UNILEVER OR NESTLE INCLUDE HERSHEY FOODS AND GERBER PRODUCTS CO BOTH COMPANIES WITH MARQUEE BRAND NAMES AND DOMINANT POSITIONS IN THE US BUT A WEAK PRESENCE OVERSEAS ANALYSTS SAY HERSHEY AND GERBER WOULDN'T COMMENT ON SUCH A POSSIBILITY BUT A NESTLE SPOKESWOMAN SAID OUR GROWTH ALWAYS INCLUDES ACQUISITIONS SOME INVESTORS DISMISS THE TALK OF RENEWED BILLIONDOLLAR TAKEOVERS AS AN ATTEMPT TO HYPE DEPRESSED FOOD STOCKS MR MCMILLIN THE PRUDENTIAL ANALYST CAUTIONS AGAINST BASING INVESTMENT DECISIONS ON HOPES OF A TAKEOVER DRIVING UP A COMPANY'S STOCK PRICE HE EVEN QUIPS THAT WITH THE FLURRY OF SMALLER DEALS EXPECTED TO SHOWER INVESTMENT BANKERS WITH FEES IT MIGHT BE A GOOD TIME TO BUY THE STOCKS OF BROKERAGE FIRMS SEPT 9 CADBURY SCHWEPPES PLC AGREED TO BUY A&W BRANDS INC FOR 334 MILLION THE BRITISH BEVERAGE AND CANDY COMPANY HAS ALSO BUILT UP A 26 STAKE IN DR PEPPER/SEVENUP COS IN RECENT MONTHS SEPT 8 UNILEVER NV AGREED TO BUY THE ICE CREAM BUSINESS OF PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT FOR AN ESTIMATED 200 MILLION TO 300 MILLION AUG 20 QUAKER OATS CO ACQUIRED THE NEAR EAST RICE BUSINESS FROM HJ HEINZ FOR UNDISCLOSED SUM AUG 9 HERSHEY FOODS CORP ACQUIRED ITALIAN CANDY BUSINESS OF HJ HEINZ CO FOR UNDISCLOSED SUM AUG 4 CPC INTERNATIONAL INC BOUGHT 85 OF PFANNIHERKE OTTO ECKART KG A LARGE GERMAN POTATO COMPANY PRICE UNDISCLOSED FEB 5 CAMPBELL SOUP CO ACQUIRE A MAJORITY INTEREST IN ARNOTTS LTD OF AUSTRALIA FOR 2265 MILLION 9309170031 930917 HEARD ON THE STREET BATTERED MELLON STOCK MAY BE A BUY BY GABRIELLA STERN AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN A GENTEEL PITTSBURGH BANK CLAIMS TO HAVE BEEN SNOOKERED BY A STREETSMART NEW YORK BROKERAGE FIRM THE RESULTS CAN BE MESSY WITNESS MELLON BANK WHOSE SHARE PRICE HAS TUMBLED 10 IN THE WEEK SINCE THE BANK SUED SMITH BARNEY SHEARSON THE LAWSUIT IN FEDERAL COURT IN PITTSBURGH ACCUSES THE SCRAPPY BROKERAGE GIANT OF DIVERTING MUTUALFUND BOOKKEEPING BUSINESS AWAY FROM THE BANK'S BOSTON CO UNIT ACQUIRED FOR 145 BILLION IN MAY THIS WEEK SMITH BARNEY'S PARENT PRIMERICA HAS SURGED 4 TO A NEARRECORD BUT NOW SOME ANALYSTS ARE CALLING MELLON'S BATTERED STOCK A SHORTTERM BUY MELLON SHARES WERE OFF 3/4 TO 53 3/4 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TECHNICALLY IT MAY BE DUE FOR A BOUNCE BACK OF SOME MAGNITUDE SAYS JOHN A HEFFERN AN ANALYST WITH ALEX BROWN & SONS YET HE WARNS IT'S TOO EARLY FOR A LONGTERM BET YOU'LL ONLY GET A MORE SUSTAINED MOVE IN THE STOCK AFTER THE FIRST COURT HEARING IN EARLY NOVEMBER JAMES HANBURY A WERTHEIM SCHRODER ANALYST SAYS MELLON'S IMPROVING ASSET QUALITY AND SOLID COVERAGE OF NONPERFORMING LOANS MAY BE A REASON TO LOOK AT IT THE CASE PROVIDES AN INSIDE PEEK AT HOW GIANT FINANCIAL FIRMS DO BATTLE IT ALSO PRESENTS THE ODD SPECTER OF TWO INDUSTRIES THAT ONCE IGNORED MUTUAL FUNDS FIGHTING TOOTHANDNAIL OVER A SMALL CORNER OF THE NOWSIZZLING FUND BUSINESS AND THERE IS A CLASH OF CORPORATE CULTURES THE BOYS AT MELLON WERE GOING BY THE MARQUESS OF QUEENSBERRY RULES AS OPPOSED TO A BACKLOT FIGHT ONE TRADER SAYS THE SUIT WOULDN'T HAVE BEEN FILED IF SMITH BARNEY HADN'T RECENTLY BOUGHT SHEARSON FROM AMERICAN EXPRESS MELLON CLAIMS THAT WHEN IT BOUGHT BOSTON CO IT ALSO GAINED AN AGREEMENT THAT BOSTON CO WOULD CONTINUE TO PROVIDE CUSTODIAL SERVICES TO SHEARON'S EXISTING AND NEW MUTUAL FUNDS FOR SEVEN YEARS BUT THEN SMITH BARNEY BOUGHT SHEARSON BRINGING TO THE DEAL A DIFFERENT BUNCH OF MUTUAL FUNDS AND CUSTODIAL RELATIONSHIPS MELLON ARGUES THAT IN MAKING THE ACQUISITION PRIMERICA AND SMITH BARNEY ACCEPTED BOSTON CO'S CONTINUING CUSTODIAL ROLE CUSTODIANS SUCH BOSTON CO KEEP FUNDS' BOOKS AND RECORDS AND FILE THEIR FINANCIAL STATEMENTS AMONG OTHER FUNCTIONS THOUGH THIS CAN BE LUCRATIVE THE CUSTODIAN BUSINESS REQUIRES A STEADY STREAM OF REVENUE TO GENERATE A FAT PROFIT IT'S LIKE A SUPERMARKET SAYS JOHN REKENTHALER OF MORNINGSTAR A CHICAGO FUNDDATA FIRM YOU CAN DO FINE IF YOU HAVE ENOUGH VOLUME BUT IT'S A LOWMARGIN BUSINESS WHAT'S AT STAKE FOR MELLON IS 100 MILLION IN ANNUAL REVENUE FROM SERVICING SHEARSON MUTUAL FUNDS THAT'S THE BULK OF BOSTON CO'S 170 MILLION FROM FUND SERVICES AND A CHUNK OF ITS 550 MILLION IN TOTAL REVENUE LOSING THE SHEARSON FUNDS IS NOT INCONSEQUENTIAL FOR MELLON SAYS MICHAEL LIPPER OF LIPPER ANALYTICAL BUT THE LOSS OF SHEARSON'S BUSINESS WOULD BE FAR FROM STAGGERING MELLON EXPECTS TO HAVE 27 BILLION IN REVENUE IN 1994 THE LOSS WOULD HOWEVER DIM THE LUSTER OF BOSTON CO'S MUTUALFUND SERVICING BUSINESS AND OTHER BOSTON CO UNITS SUCH AS TRUST MANAGEMENT COULD BE PENALIZED BECAUSE THEY NOW SHARE DATA AND SECURITIESPROCESSING COSTS SAYS A FORMER BOSTON CO EXECUTIVE MELLON'S FORTUNES HAVE REBOUNDED STRONGLY SINCE ENERGY AND REAL ESTATE LOANS NEARLY BROUGHT DOWN THE COMPANY IN THE LATE 1980S BUT IT TOOK A BIG GAMBLE IN BUYING A COMPANY WHOSE FUND BUSINESS IS SO DEPENDENT ON A SINGLE CUSTOMER PRIMERICA FOR ITS PART IS DETERMINED TO SHRINK COSTS SINCE DIGESTING SHEARSON'S BROKERAGE AND ASSETMANAGEMENT BUSINESS IN AUGUST PRIMERICA CHAIRMAN SANFORD WEILL HAS BEEN ON A COSTCUTTING CRUSADE SETTING PLANS TO IDLE AS MANY AS 1500 WORKERS AND CLOSE ABOUT A DOZEN BRANCHES OF THE COMBINED FIRM IN RECENT WEEKS SMITH BARNEY SHEARSON HAS FILED PLANS TO LAUNCH SEVERAL NEW MUTUAL FUNDS THESE INCLUDE A JUNKBOND FUND THAT MELLON'S SUIT CLAIMS IS VIRTUALLY IDENTICAL TO SHEARSON'S MANAGED HIGH INCOME FUND THE MELLON COMPLAINT FURTHER ASSERTS THAT THE NEW JUNK FUND EVEN PLANS TO USE THE SAME PORTFOLIO MANAGER AS THE SHEARSON FUND AMONG PLANNED SMITH BARNEY FUNDS ARE FOUR STOCK PORTFOLIOS APPRECIATION SPECIAL EQUITIES FUNDAMENTAL VALUE AND EUROPEAN THAT MELLON SAYS ARE VIRTUAL CLONES OF EXISTING SHEARSON FUNDS ASIDE FROM SUBSTITUTING THE WORD PORTFOLIO FOR FUND THE NAMES OF THE NEW FUNDS ARE VIRTUALLY IDENTICAL TO THE OLD ONES AS ARE THEIR STATED INVESTMENT OBJECTIVES SINCE THE MERGER'S CLOSING EARLY LAST MONTH SMITH BARNEY SHEARSON ALSO REGISTERED A HANDFUL OF OTHER NEW MUTUAL FUNDS THAT ARE NEARLY IDENTICAL TO EXISTING SHEARSON OFFSHORE FUNDS MELLON SAYS IN ALL THESE CASES MELLON SAYS THE NEW MUTUAL FUNDS WILL BE SERVICED BY SMITH BARNEY SHEARSON NOT BOSTON CO THE SUIT FOLLOWED AN ATTEMPT TO NEGOTIATE SMITH BARNEY SHEARSON QUIETLY PROPOSED BUYING THE SHEARSON FUNDS' SERVICING FUNCTION FROM BOSTON CO PEOPLE ON BOTH SIDES SAY THE BROKERAGE FIRM WAS CHAFING UNDER THE FEES BOSTON CO WAS USED TO CHARGING SHEARSON WHEN BOTH WERE OWNED BY AMERICAN EXPRESS BUT SMITH BARNEY SHEARSON APPARENTLY PITCHED MELLON A LOWBALL OFFER JEFFREY LANE CHIEF OF SMITH BARNEY SHEARSON'S ASSET MANAGEMENT DIVISION PROPOSED PAYING AN AMOUNT BASED ON REVENUE TOTALING AROUND 65 MILLION ACCORDING TO PEOPLE CLOSE TO PRIMERICA AND MELLON MR LANE AND PRIMERICA DECLINED TO COMMENT LAWRENCE KASH A MELLON EXECUTIVE VICE PRESIDENT AND PRESIDENT OF THE BOSTON CO UNIT COUNTERED WITH A FAR LARGER SUM ABOUT 350 MILLION THIS AMOUNT REFLECTED AN ASSESSMENT OF THE VALUE OF BOSTON CO'S MUTUAL FUND SERVICES MADE BY MCKINSEY & CO FOR AMERICAN EXPRESS BEFORE MELLON ACQUIRED BOSTON CO WHEN SMITH BARNEY DIDN'T RESPOND TO MELLON'S OFFER THE BANK FILED SUIT LAST FRIDAY MELLON SAYS IT IMMEDIATELY NOTIFIED SMITH BARNEY AND URGED A QUICK SETTLEMENT DURING THE WEEKEND BUT THAT SMITH BARNEY AGAIN DIDN'T RESPOND THE CASE HINGES ON WHETHER PRIMERICA IN ABSORBING THE ORIGINAL MELLONSHEARSON CONTRACT HAS WIGGLE ROOM IN CREATING NEW FUNDS WITHOUT USING BOSTON CO AS CUSTODIAN ANOTHER QUESTION WILL PRIMERICA AND ITS BROKERAGE UNIT BE HELD TO THE SPIRIT AS WELL AS THE LETTER OF THE CONTRACT MELLON PLANS TO CITE A NEW YORK COMMONLAW DOCTRINE OF FAIR DEALING UNDER WHICH COURTS CAN ENFORCE THE SPIRIT OF CONTRACTS PEOPLE CLOSE TO THE BANK SAY SOME BROKERAGEINDUSTRY SECURITIES LAWYERS BELIEVE MELLON COULD HAVE A TOUGH TIME PREVAILING IT STRIKES ME THAT MELLON'S GOT AN UPHILL BATTLE SAYS SAM SCOTT MILLER A FORMER GENERAL COUNSEL AT PAINEWEBBER GROUP AND AN EXPERT ON SECURITIES LAW DAVID ROBBINS ANOTHER BROKERAGE LAWYER DOUBTS SMITH BARNEY WOULD HAVE SIGNED A CONTRACT THAT BARRED IT FROM CREATING AND SERVICING NEW MUTUAL FUNDS THEY'RE TOO SMART HE SAYS YEAR ENDED DEC 31 1992 SECOND QUARTER JUNE 30 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9309170030 930917 YOUR MONEY MATTERS WEEKEND REPORT RELYING ON A REFERRAL FOR AN EXPERT COULD BE HAZARDOUS TO YOUR WEALTH BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL WHEN YOU NEED TO FIND A FINANCIAL SPECIALIST THE ADVICE IS ALMOST ALWAYS THE SAME WHETHER IT'S AN INSURANCE AGENT YOU NEED OR MAYBE A MONEY MANAGER OR AN ESTATEPLANNING ATTORNEY PEOPLE ARE ALWAYS SAYING TO GET A REFERRAL PREFERABLY FROM ONE OF YOUR EXISTING ADVISERS INDEED MANY PEOPLE SELECT SPECIALISTS SOLELY ON THE BASIS OF SUCH A REFERRAL CLIENTS SOMETIMES TAKE IT AS ABSOLUTE GOSPEL WHEN A TRUSTED ADVISER GIVES THEM A NAME SAYS JAMES WILSON A COLUMBIA SC FINANCIAL PLANNER AND MANY PEOPLE WANT A SINGLE NAME NOT A FEW FROM WHICH TO SELECT SAYS LYNN HOPEWELL A FALLS CHURCH VA INVESTMENT CONSULTANT BUT THERE ARE SEVERAL SIGNIFICANT AND GENERALLY UNRECOGNIZED PITFALLS IN BLITHELY HIRING ONE PROVIDER ON ANOTHER'S RECOMMENDATION FOR STARTERS THE PERSON MAKING THE RECOMMENDATION MAY KNOW MUCH LESS THAN YOU THINK ABOUT THE OTHER'S OPERATION AND COMPETENCE MR WILSON SAYS SOME ATTORNEYS WHO REFER CLIENTS TO HIS FIRM KNOW MODERATELY LITTLE ABOUT WHAT WE DO REALLY IDEALLY ONE'S CURRENT ADVISERS HAVE BOTH KNOWLEDGE OF RELATED FIELDS AND ACTUAL EXPERIENCE WORKING WITH OTHER ADVISERS AND PROVIDERS BUT MANY SPECIALISTS SIMPLY DON'T KNOW EACH OTHER'S FIELDS WELL ENOUGH TO EVALUATE ABILITY SAYS GARY R GREENBAUM AN ORADELL NJ INVESTMENT COUNSELOR ALTERNATIVELY YOU COULD BE GETTING THE NAME OF SOMEONE YOUR CURRENT ADVISER HAS GOTTEN TO KNOW AND LIKE ON A MOSTLY SOCIAL RATHER THAN PROFESSIONAL BASIS IT'S ALSO POSSIBLE THE PERSON MAKING THE REFERRAL IS GETTING PAID TO PASS YOU ALONG WHICH CAN COLOR THE RECOMMENDATION FOR INSTANCE SOME MONEY MANAGERS PAY SOLICITATION FEES TO STOCKBROKERS INSURANCE AGENTS AND OTHERS WHO DIRECT BUSINESS THEIR WAY A TYPICAL PAYMENT MIGHT BE 7 TO 10 OF THE FEES THE MONEY MANAGER WILL EARN IN THE FIRST YEAR OF WORKING WITH THE CLIENT SAYS JEFFREY B KELVIN A PLYMOUTH MEETING PA ATTORNEY AND CONSULTANT TO MONEY MANAGERS SUCH PAYMENTS ARE PERFECTLY PERMISSIBLE UNDER FEDERAL SECURITIES LAWS AS LONG AS THE FINANCIAL RELATIONSHIP IS DISCLOSED TO THE CLIENT THE DISCLOSURE IS INTENDED TO PROTECT PEOPLE FROM SITUATIONS WHERE CLIENTS THINK THEY ARE GETTING UNBIASED DISINTERESTED ADVICE AND THEY ARE NOT EXPLAINS ROBERT PLAZE AN ASSISTANT DIRECTOR OF THE SECURITIES AND EXCHANGE COMMISSION'S INVESTMENT MANAGEMENT DIVISION BUT SOME PEOPLE IN THE FINANCIAL SERVICES INDUSTRY TRY TO COLLECT SUCH FEES WITHOUT THE REQUIRED DISCLOSURE HUGH R LAMLE EXECUTIVE VICE PRESIDENT OF MONEY MANAGER MD SASS INVESTORS SERVICES INC IN NEW YORK SAYS HE IS APPROACHED PERHAPS ONCE A YEAR BY SOMEONE SEEKING PAYMENT FOR REFERRING A CLIENT MR LAMLE SAYS HE INDICATES HE DISLIKES SUCH PAYMENTS AND WOULD MAKE THEM ONLY WITH FULL DISCLOSURE THAT USUALLY STIFLES FURTHER INTEREST HE SAYS ANOTHER MONEY MANAGER WHO ASKS THAT HIS NAME NOT BE USED SAYS HE HAS BEEN APPROACHED BY A NUMBER OF ACCOUNTANTS WHO PROPOSE TO REFER CLIENTS TO HIM AND THEN SEND HIM A BILL FOR A CONSULTING FEE IN MOST STATES ACCOUNTANTS ARE PROHIBITED FROM ACCEPTING REFERRAL FEES WHEN HE INDICATES HE WOULD DISCLOSE THE PAYMENT TO THE CLIENT THE MONEY MANAGER SAYS THERE IS A SILENCE ON THE OTHER END OF THE PHONE THEY SAY OH' AND I NEVER HEAR FROM THEM AGAIN THERE ARE OTHER MORE SUBTLE PITFALLS THAT STEM FROM THE RELATIONSHIP BETWEEN TWO ADVISERS OR THE EXCESSIVE RELIANCE THAT SOME PEOPLE PUT ON REFERRALS MR WILSON SAYS REFERRALS FROM A TRUSTED ATTORNEY OR ACCOUNTANT TO A PRODUCT SELLER SUCH AS A STOCKBROKER CAN BE FULL OF DANGER WHILE THE CLIENT IS ACCUSTOMED TO PAYING THE FIRST PERSON FOR OBJECTIVE ADVICE IT'S IMPORTANT TO REALIZE THAT THE SECOND MAY HAVE A FINANCIAL INCENTIVE TO SELL MORE PRODUCTS OR DIFFERENT PRODUCTS THAN WOULD BE IN THE CLIENT'S BEST INTEREST WHAT I AM AFRAID OF MR WILSON SAYS IS THE CLIENT JUST DROPS HIS GUARD AND TAKES EVERYTHING THAT HAPPENS AS BEING TACITLY APPROVED BY THE REFERRER WHICH IS NOT NECESSARILY THE CASE MOST AT RISK HE SAYS ARE CLIENTS GOING THROUGH A TRAUMATIC PERIOD SUCH AS A DIVORCE OR A FAMILY DEATH THERE ARE DIFFERENT ISSUES WHEN PRODUCT SELLERS REFER BUSINESS TO LAWYERS AND ACCOUNTANTS IN SUCH CASES THE ADVISER MAY BE TEMPTED TO HOLD BACK OR ALTER HIS OR HER ADVICE IN ORDER TO AVOID ANTAGONIZING THE PERSON WHO REFERRED THE CLIENT AFTER ALL THAT PERSON CAN POTENTIALLY SEND ALONG LOTS OF OTHER CLIENTS IN THE FUTURE SUCH CONFLICTS OF INTEREST ARE A SERIOUS PROBLEM AND ONE THAT ISN'T TALKED ABOUT SAYS ELLIOT S LIPSON AN ATLANTA FINANCIAL PLANNER MANY ESTATEPLANNING LAWYERS GET REPEAT REFERRALS FROM INSURANCE AGENTS WHO PERSUADE AFFLUENT RETIREES TO BUY BIG INSURANCE POLICIES TO PAY THE ESTATE TAXES THAT WILL BE DUE AT THEIR DEATHS THOSE POLICIES ARE MOST APPROPRIATELY PURCHASED THROUGH LIFE INSURANCE TRUSTS THAT MUST BE DRAFTED BY ATTORNEYS FOR THE ATTORNEYS CRITICIZING THE INSURANCE PURCHASE RECOMMENDED BY THE AGENT CAN TURN OFF THE REFERRAL SPIGOT WASHINGTON ATTORNEY JOHN FREEMAN BLAKE RECALLS THAT THE FOURTH OR FIFTH REFERRAL HE RECEIVED FROM ONE AGENT SEVERAL YEARS AGO INVOLVED A WEALTHY FARMER ABOUT TO BUY A MULTIMILLION DOLLAR INSURANCE POLICY MR BLAKE HAD BEEN HIRED SPECIFICALLY TO DRAFT THE NEEDED LEGAL DOCUMENTS AND HE SAYS I AM PERFECTLY WILLING TO WORK WITH THAT STRUCTURE BUT WHEN THE CLIENT DIRECTLY ASKED HIS OPINION OF THE PROPOSED INSURANCE MR BLAKE OFFERED IT SUCCINCTLY DOG MEAT THE THREEWAY MEETING OF THE CLIENT THE AGENT AND MR BLAKE ENDED QUICKLY THE LAWYER RECALLS AND HE NEVER HEARD FROM THE AGENT AGAIN THE RELATIONSHIP WITH THAT AGENT TURNED OUT TO BE A VALUABLE ONE FOR MR SHENKMAN GENERATING 15 TO 20 NEW CLIENTS SINCE THEN BUT MR SHENKMAN FRETS THAT THERE ARE SOME LAWYERS WHO WHEN REFERRED BUSINESS IN THIS SITUATION WOULD BE LOATH TO RISK LOSING THEIR REFERRAL SOURCE BY GIVING OBJECTIVE ADVICE HE SAYS ATTORNEYS AND ACCOUNTANTS CAN FACE CONSIDERABLE PRESSURE TO BE 'YES MEN' FOR THE INSURANCE SALESPERSON IN ORDER TO ENSURE FUTURE REFERRALS THE BOTTOM LINE FOR ANYONE SEEKING A NEW ADVISER OR FINANCIAL SERVICE PROVIDER USE REFERRALS AS A STARTING POINT BUT DO YOUR OWN HOMEWORK FROM THERE IF WHAT YOU REALLY WANT IS A SECOND OPINION ON A MAJOR FINANCIAL MOVE SUCH AS A BIG INSURANCE PURCHASE CONSIDER SEEKING AN ADVISER WHO HAS NO CONNECTION TO THE PROPOSED TRANSACTION IN ANY EVENT TAKE THE TIME TO GET TWO OR THREE NAMES AND BRIEFLY INTERVIEW THE PEOPLE IN PERSON PERSONAL CHEMISTRY IS IMPORTANT IN ANY ADVISORY RELATIONSHIP AND A FACETOFACE MEETING IS THE BEST WAY TO JUDGE INDEED MR HOPEWELL THE VIRGINIA INVESTMENT ADVISER WHOSE CLIENTS USUALLY ASK HIM FOR A SINGLE REFERRAL MAKES IT A POINT TO GET TWO OR MORE NAMES WHEN HE IS LOOKING FOR HELP HIMSELF THAT WAY HE SAYS I CAN LOOK AT TWO PEOPLE AND CHOOSE THE ONE THAT FEELS BEST IN HIRING AN ADVISER OR FINANCIALSERVICES PROVIDER IT'S EASY TO RELY ON ANOTHER ADVISER'S RECOMMENDATION TO AVOID PROBLEMS THERE ARE A NUMBER OF QUESTIONS ONE SHOULD ASK ASK THE PERSON MAKING THE REFERRAL WHY DO YOU RECOMMEND THIS PERSON RATHER THAN OTHERS IN THE FIELD DOES HE OR SHE HAVE PARTICULAR CREDENTIALS OR EXPERIENCE IN THE TYPE OF WORK I NEED HOW MUCH EXPERIENCE HAVE YOU HAD PERSONALLY IN WORKING WITH THIS PERSON WHAT ARE HIS OR HER STRENGTHS AND WEAKNESSES HOW MUCH DO YOU PERSONALLY KNOW ABOUT THE FIELD WILL YOU BE REVIEWING THIS PERSON'S WORK HAVE YOU RECOMMENDED OTHER CLIENTS USE THIS PERSON ARE THERE A FEW WITH WHOM I MIGHT SPEAK DO YOU RECEIVE REFERRAL FEES OR OTHER COMPENSATION FOR PASSING ME ALONG ALL THE QUESTIONS ABOUT EDUCATION EXPERIENCE AND OPERATIONS THAT YOU WOULD ASK SOMEONE WHOSE NAME YOU PULLED OUT OF THE PHONE BOOK PLUS DO YOU PAY REFERRAL FEES OR OTHER COMPENSATION TO PEOPLE WHO SEND BUSINESS YOUR WAY DO YOU SEE YOUR ROLE AS EXECUTING A PARTICULAR TASK SUCH AS PREPARING A LEGAL DOCUMENT OR WILL YOU PROVIDE A BROAD REVIEW OF MY AFFAIRS IN YOUR AREA OF EXPERTISE WILL YOU TELL ME IF YOU DISAGREE WITH SOMETHING MY OTHER ADVISER OR PROVIDER HAS RECOMMENDED WILL YOU TELL ME IF YOU FIND ERRORS IN SOMETHING HE OR SHE HAS DONE 9309170029 930917 CIGNA TO SLASH AS MANY AS 1000 JOBS TO PREPARE FOR HEALTHCARE CHANGES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CIGNA CORP PLANS TO ELIMINATE AS MANY AS 1000 JOBS IN ITS BOOMING HEALTH INSURANCE BUSINESS A MOVE IT SAYS IS NECESSARY TO PREPARE FOR HEALTHCARE REFORM THE BIG INSURER HOPES THAT BY MAKING CUTS NOW EVEN THOUGH ITS HEALTHCARE BUSINESS IS MAKING MORE MONEY THAN EVER IT CAN STAY AHEAD OF RIVALS OTHER INSURERS ARE ALSO UNDER PRESSURE AS WASHINGTON AND EMPLOYERS ARE DEMANDING THEY CUT COSTS AND PASS THE SAVINGS ALONG TO CUSTOMERS COMPANIES THAT ONLY BEGIN TO CHANGE AFTER LOSING EARNINGS FAIL SAID LAWRENCE ENGLISH PRESIDENT OF CIGNA'S EMPLOYEE LIFE AND HEALTH BENEFITS BUSINESS IN A RECENT SPEECH TO SENIOR MANAGERS CIGNA OFFICIALS DECLINED TO COMMENT ON HOW MUCH MONEY THE CUTS WOULD SAVE BUT ANALYSTS SAY THE SAVINGS COULD REACH 50 MILLION A YEAR IN THE FIRST HALF OF THIS YEAR PROFIT FOR MR ENGLISH'S UNIT WHICH IS MOSTLY GROUP HEALTH INSURANCE AND MANAGED CARE SOARED 52 TO 203 MILLION FROM 133 MILLION A YEAR EARLIER CIGNA BASED IN PHILADELPHIA SAID IT HAD NO IMMEDIATE PLANS TO TAKE A CHARGE AGAINST EARNINGS TO COVER SEVERANCE EXPENSES SEVERANCE PAYMENTS COULD BE AVOIDED IF CIGNA ACCOMPLISHED THE DOWNSIZING ENTIRELY THROUGH ATTRITION BUT MR ENGLISH HAS SAID SOME LAYOFFS ARE UNAVOIDABLE WE CANNOT ESCAPE THE FACT THAT WE WILL ALSO NEED TO DO SOME WORKFORCE REDUCTIONS PRIOR TO YEAR END HE SAID IN HIS SPEECH TO MANAGERS CIGNA HAS REDUCED ITS WORK FORCE TO 52000 FROM A PEAK OF 56973 IN 1990 MOSTLY BY ATTRITION ABOUT HALF OF CIGNA'S EMPLOYEES WORK IN THE HEALTHCARE OPERATION WHICH IS BASED IN BLOOMFIELD CONN A CUT OF 1000 JOBS WOULD BE A 38 REDUCTION IN THAT OPERATION OTHER INSURERS NOTABLY AETNA LIFE & CASUALTY CO AND TRAVELERS CORP HAVE ALSO MADE SIZABLE STAFF CUTS COMPANYWIDE IN RECENT YEARS CIGNA'S ANTICIPATED CUTS ARE THE FIRST FOCUSED ENTIRELY ON HEALTH CARE BUT WHILE INSURERS HAVE BEEN DOWNSIZING THE PRESSURE TO CUT EVEN FURTHER REMAINS INTENSE SOME MEMBERS OF CONGRESS AS WELL AS CONSUMER ADVOCATES BELIEVE THE INSURANCE INDUSTRY REPRESENTS AN UNNECESSARY LAYER OF ADMINISTRATIVE COST IN THE DELIVERY OF MEDICAL SERVICES THEY BELIEVE BILLIONS OF DOLLARS CAN BE SAVED BY ELIMINATING THE HEALTH INSURANCE INDUSTRY AND TRANSFERRING THE ADMINISTRATIVE ROLE TO THE FEDERAL GOVERNMENT SOME IN THE INSURANCE INDUSTRY BELIEVE THEY FACE EXTINCTION UNLESS THEY ACT QUICKLY TO BECOME MORE EFFICIENT THE CLINTON HEALTHCARE PLAN DOESN'T CONTEMPLATE ELIMINATING THE HEALTH INSURANCE INDUSTRY BUT IT FORCES INSURERS TO OPERATE UNDER A FIXEDBUDGET THAT GIVES THEM NO CHOICE BUT TO CUT COSTS DESPITE THE POWERFUL MOTIVATIONS TO REDUCE OVERHEAD SOME ANALYSTS SAY THE PROPOSED CUTS ARE SURPRISING GIVEN THAT CIGNA IS EXPECTED TO GET MORE BUSINESS UNDER HEALTHCARE REFORM CIGNA IS ONE OF THE COUNTRY'S LARGEST OPERATORS OF HEALTH MAINTENANCE ORGANIZATIONS AND IS ONE OF THE BIG FIVE HEALTH INSURERS ALONG WITH PRUDENTIAL INSURANCE CO OF AMERICA METROPOLITAN LIFE INSURANCE CO AETNA AND TRAVELERS AS HEALTHCARE REFORM PUSHES SMALLER INSURERS OUT OF BUSINESS THE BIG PLAYERS ARE EXPECTED TO GET THEIR BUSINESS YOU FIGURE SOMEONE WITH GREAT PROSPECTS IN HEALTHCARE REFORM COULD FIGURE OUT A BETTER THING TO DO WITH THE PEOPLE TAN LAY THEM OFF SAID JAMES RAMENDA AN ANALYST WITH NORTHINGTON PARTNERS IN AVON CONN HE SAID THE CUTS FIRST REPORTED IN THE HARTFORD COURANT RAISE DOUBTS ABOUT WHETHER HEALTHCARE REFORM WILL GENUINELY REWARD BIG INSURERS SUCH AS CIGNA MR ENGLISH BELIEVES THAT AS CIGNA SIMPLIFIES ITS HEALTHCARE BENEFITS PACKAGES AND APPLIES ADDITIONAL TECHNOLOGY TO CLAIMS PROCESSING IT CAN DO MORE WITH LESS LOWER COSTS WILL ALSO ALLOW IT TO CHARGE LESS FOR ITS PRODUCTS MAKING IT MORE COMPETITIVE IN A RECENT MEMO TO SENIOR MANAGERS MR ENGLISH ELABORATED ON THE POINT SAYING THAT THE LAYOFFS HAVE LITTLE TO DO WITH 1993 EARNINGS WHICH ARE PROJECTED TO BE QUITE STRONG BUT EVERYTHING TO DO WITH OUR FUTURE SUCCESS OTHER COSTCUTTING EFFORTS INCLUDE REDUCING TRAVEL ENTERTAINMENT AND CONSULTING BILLS AND LIMITS ON PURCHASES OF OFFICE SUPPLIES TO HAMMER HOME THE POINT OF COST REDUCTION MR ENGLISH HAS MOVED TO A SMALLER OFFICE IN THE SAME GROUNDFLOOR AREA WHERE CLAIMS HANDLERS WORK ALTHOUGH CIGNA'S HEALTHCARE PROFITS ARE RISING THE COMPANY HAS HAD TROUBLE IN ITS PROPERTY AND CASUALTY BUSINESS IN THE FIRST HALF OPERATING EARNINGS FOR CIGNA FELL BECAUSE OF DECLINES IN PROPERTY AND CASUALTY RESULTS 9309170028 930917 JAPAN STEEL OUTPUT GREW 08 IN AUGUST FROM A YEAR EARLIER SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S STEEL PRODUCTION GREW ONLY 08 IN AUGUST FROM A YEAR EARLIER TO 8136 MILLION METRIC TONS THE JAPAN IRON AND STEEL FEDERATION ANNOUNCED A METRIC TON EQUALS 220462 POUNDS THE GROWTH WAS THE SLOWEST SINCE FEBRUARY WHEN STEEL OUTPUT GREW 06 ALTHOUGH PRODUCTION HAS RISEN FOR NINE CONSECUTIVE MONTHS NOW MUCH OF THE INCREASE REFLECTS THE SEVERITY OF CONDITIONS LAST YEAR AND THE PROGRESS IN REDUCING EXCESS INVENTORIES SINCE A FEDERATION SPOKESMAN NOTED THE TWOYEAR SLUMP IN STEEL OUTPUT HAS CONTINUED AMID THE WEAKNESS OF DOMESTIC DEMAND AS WELL AS DWINDLING SUPPORT FROM CHINESE PURCHASES HE SAID CHINA'S ECONOMY IS UNDERGOING A CORRECTION AFTER OVERHEATING FOR SEVERAL MONTHS AND CHINESE DEMAND FOR STEEL HAS BEEN REVISED SHARPLY DOWNWARD FOR THE COMING SIX MONTHS BUT THE SPOKESMAN ALSO NOTED THAT STEEL PRODUCTION TENDS TO SLOW IN AUGUST WHEN MANY COMPANIES SHUT DOWN FOR SUMMER HOLIDAYS MEANTIME OWING TO THE SHARP APPRECIATION OF THE YEN JAPANESE CAR MAKERS AND OTHER BIG EXPORTORIENTED INDUSTRIES HAVE BEEN ROLLING BACK PLANS FOR INVESTMENT IN PLANT AND EQUIPMENT A MAJOR SOURCE OF DEMAND FOR STEEL THE YEN'S RISE WHITTLES AWAY OVERSEAS PROFITS WHEN THEY ARE REPATRIATED AND ALSO MAKES JAPANESE PRODUCTS LESS COMPETITIVE DEMAND FROM THE CONSTRUCTION INDUSTRY HAS ALSO BEGUN TO SAG AS SCANDALS INVOLVING BRIBES OF LEADING POLITICIANS HAVE FROZEN BIDDING PERMITS FOR SOME OF THE BIGGEST GENERAL CONTRACTORS 9309170027 930917 BUSINESS BRIEF OCCIDENTAL PETROLEUM CORP RESULTS FOR DISCOVERY WELL IN KOMI REPUBLIC ARE GIVEN OCCIDENTAL PETROLEUM CORP GAVE RESULTS FOR WHAT IT CALLED A SIGNIFICANT DISCOVERY WELL IN THE REPUBLIC OF KOMI NEAR THE ARCTIC CIRCLE ABOUT 1000 MILES NORTHEAST OF MOSCOW OCCIDENTAL LOS ANGELES SAID THE SOUTH TEREKHEVEISKAYA PARMANEFT1 WELL FLOWED AT A COMBINED RATE OF 6480 BARRELS PER DAY THROUGH AN 11/16INCH CHOKE THE COMPANY SAID THE WELL WAS DRILLED IN THE 15 MILLIONACRE BLOCK 15 WHERE OCCIDENTAL ACQUIRED EXPLORATION AND PRODUCTION RIGHTS LAST YEAR THE WELL 75OWNED BY OCCIDENTAL AND 25OWNED BY UKHTANEFTEGASGEOLOGIA A KOMI STATE ENTERPRISE PRODUCED RELATIVELY LIGHT OIL OF 43DEGREE VISCOSITY MEASURED ON THE AMERICAN PETROLEUM INSTITUTE SCALE OCCIDENTAL SAID THE WELL SITE NOT FAR FROM THE TOWN OF PECHORA IS 30 MILES FROM A CRUDEOIL PIPELINE THE COMPANY SAID APPRAISAL DRILLING WILL BEGIN EARLY NEXT YEAR 9309170026 930917 LEISURE & ARTS ON SPORTS TEAM GOLF YANKS EYE REPEAT VS EUROS BY FREDERICK C KLEIN IF YOU DON'T ENJOY WATCHING GROWN MEN CRY STEER CLEAR OF THE RYDER CUP MATCHES THAT BEGIN NEXT FRIDAY IN ENGLAND THE ONCEEVERYTWOYEARS SHOWDOWN BETWEEN THE BEST PROFESSIONAL GOLFERS OF THE US AND EUROPE OPENS THE CONTESTANTS' TEAR DUCTS LIKE NOTHING SAVE A FLAT TIRE ON A COURTESY CAR ONE NEED ONLY FLASH BACK TO THE FINAL DAY OF THE LAST SUCH FEST IN 1991 AT KIAWAH ISLAND SC FOR EXAMPLES LANNY WADKINS A US VETERAN WON AND WEPT BERNHARD LANGER OF GERMANY SHED TEARS AFTER MISSING A SIXFOOT PUTT ON THE LAST HOLE THAT WOULD HAVE ALLOWED HIS TEAM TO RETAIN THE CUP VIA A TIE SAID THE US'S HALE IRWIN LANGER'S MATCHPLAY FOE WHOSE NERVES WERE STEADY ENOUGH WHILE HE WAS WINNING THREE US OPEN TITLES THOSE LAST FEW HOLES I COULDN'T SWALLOW AND COULD BARELY BREATHE I COULD HARDLY HIT THE BALL I WOULDN'T WISH THE EXPERIENCE ON ANYONE THAT'S WHAT YOU OFTEN GET WHEN YOU MIX NATIONALISM WITH SPORTS BUT IT'S A BIT SURPRISING COMING FROM GOLF THE LINKS PROS GENERALLY PRESENT THEMSELVES AS RUGGED INDIVIDUALISTS CLINT EASTWOOD TYPES WHO RIDE INTO A TOWN ALONE TAKE THEIR SHOTS AND RIDE OUT THE SAME WAY BUT BASED ON ALL THE HIGHFIVING AND FANNY SLAPPING THEY DO WHEN TEAMMATES ARE HANDY THEY'RE REALLY NOTQUITEGROWNUP LITTLE LEAGUERS IN POLYESTER THE OCCASION FOR SUCH DISPLAYS IS A 66YEAROLD EVENT THAT EVOKED MOSTLY YAWNS UNTIL THE PAST 10 YEARS THE RYDER CUP IS NAMED FOR SAMUEL RYDER A GOLFLOVING NATIVE OF MANCHESTER ENGLAND WHO MADE HIS MONEY SELLING SEED PACKETS TO GARDENERS HE PUT UP 250 FOR THE SPINDLY GOLD TROPHY THAT IN 1927 TRANSFORMED OCCASIONAL MATCHES BETWEEN TEAMS OF BRITISH AND AMERICAN PROS INTO REGULAR BIENNIAL MEETINGS BRITS AND YANKS SPLIT THE FIRST FOUR MATCHPLAY COMPETITIONS WITH THE HOME TEAM WINNING EACH THEN BETWEEN 1935 AND 1983 THE US WON 19 OF THE NEXT 21 MOSTLY BY LOPSIDED SCORES THE WORM BEGAN TO TURN IN 1979 WHEN THE BRITISH OPENED THEIR RANKS TO GOLFERS FROM ELSEWHERE IN EUROPE THE US WON THE 1983 RENEWAL BY BUT A POINT 14 1/2 TO 13 1/2 AND TWO YEARS LATER AT THE BELFRY COURSE IN SUTTON COLDFIELD ENGLAND NEAR BIRMINGHAM SITE OF NEXT WEEK'S MATCHES THE EUROPEANS PREVAILED THEY WON THE NEXT ONE AT MUIRFIELD VILLAGE IN DUBLIN OHIO AND RETAINED THE TROPHY WITH A 1414 TIE AT THE BELFRY IN 1989 THUS THE 1991 AMERICAN VICTORY BY A 14 1/213 1/2 SCORE THAT WOULD HAVE BEEN 1414 HAD LANGER'S PUTT DROPPED ENDED SIX YEARS OF US FRUSTRATION SO EAGERLY HAS THE COMING TEST BEEN AWAITED THAT QUESTIONS ABOUT IT HAVE DOMINATED TOURNAMENT PRESS CONFERENCES ALL YEAR EVEN WITH PLAYERS WHO HAD SCANT CHANCE OF MAKING EITHER SQUAD DOESN'T ANYONE WANT TO HEAR ABOUT MY ROUND ASKED LONGSHOT IRWIN WHEN HE CONTENDED AT LAST MONTH'S PGA CHAMPIONSHIPS FEW DID TOM WATSON THE FIVETIME BRITISH OPEN CHAMP WHO'S THE US'S NONPLAYING CAPTAIN HAS BEEN HEARD TO MUTTER THAT HE'LL BE GLAD WHEN HIS TERM ENDS IF ONLY BECAUSE IT MIGHT CHANGE THE SUBJECT WHAT WATSON AND HIS EUROPEAN COUNTERPART BERNARD GALLACHER DO IS NAME THE PLAYERS WHO FILL OUT THEIR 12MAN ROSTERS AND WRITE THE LINEUPS FOR THE EVENT'S TEAM PORTIONS TO THE 10 AMERICANS WHO QUALIFIED THROUGH THEIR TOURNAMENT PERFORMANCES PAUL AZINGER FRED COUPLES TOM KITE LEE JANZEN COREY PAVIN PAYNE STEWART JOHN COOK DAVIS LOVE III CHIP BECK AND JIM GALLAGHER JR WATSON NAMED OLD PROS WADKINS 43 AND RAY FLOYD 51 CALLING THEM MR CHATTER AND MR STARE RESPECTIVELY JANZEN COOK LOVE AND GALLAGHER ARE THE RYDER CUP ROOKIES IN THAT GROUP NINE EUROPEANS QUALIFIED THROUGH TOURNEY PLAY LANGER NICK FALDO BARRY LANE PETER BAKER AND MARK JAMES OF ENGLAND COLIN MONTGOMERIE AND SAM TORRANCE OF SCOTLAND IAN WOOSNAM OF WALES AND COSTANTINO ROCCA OF ITALY GALLACHER NAMED A SWEDE JOAKIM HAEGGMAN AND TWO SPANISH VETS SEVE BALLESTEROS AND JOSEMARIA OLAZABAL BALLESTEROS AND OLAZABAL HAVEN'T PLAYED ESPECIALLY WELL LATELY BUT THEY'VE BEEN THE BEST TWO PLAYERS IN RECENT CUPS WITH A COMBINED WONLOSTTIED RECORD OF 27107 ROCCA AND HAEGGMAN WILL BE THE FIRST FROM THEIR NATIONS TO APPEAR THEY BAKER AND LANE ARE ROOKIES THE EVENT'S FORMAT CALLS FOR FOUR ALTERNATESHOT MATCHES BETWEEN TWOMAN TEAMS ON FRIDAY AND SATURDAY MORNING AND FOUR BETTERBALL TEAM MATCHES ON EACH OF THOSE AFTERNOONS TWELVE SINGLES DUELS ARE SCHEDULED FOR SUNDAY WINS WILL BE WORTH ONE POINT AND TIES HALF A POINT ALL MATCHES WILL END AT 18 HOLES THE EVENT'S SITE THE BELFRY LOOKS MORE LIKE A US RESORT COURSE THAN THE SEASIDE LINKS LAYOUTS USUALLY ASSOCIATED WITH BRITISH GOLF THIS IS A SORT OF TURNAROUND BECAUSE KIAWAH ISLAND'S DUNELAND OCEAN COURSE WHERE THE '91 CUP WAS PLAYED IS ABOUT AS CLOSE TO A BRITISH LINKS AS YOU CAN GET IN THE US WHILE GENERALLY REGARDED AS PEDESTRIAN THE BELFRY BOASTS AT LEAST ONE HOLE OF DISTINCTION THE 474YARD DOGLEGLEFT 18TH IT HAS AN LSHAPED POND THAT PLAYERS MUST TRAVERSE ON BOTH THEIR DRIVES AND SECOND SHOTS US CHANCES IN '85 AND '89 DROWNED WITH SHOTS THAT WOUND UP WET THERE IT'S LIKELY THAT THE GOLF COURSE WON'T BOTHER THE VISITORS AS MUCH AS THE CROWDS SOME 28000 PEOPLE ARE EXPECTED TO ATTEND EACH DAY WITH THE VAST MAJORITY OF THEM PROEURO IT ISN'T CLEAR YET WHAT FORMS THEIR PARTISANSHIP WILL TAKE FANS AT KIAWAH WAVED AND WORE US FLAGS WHILE VOICING THE FAMILIAR USA USA CHANT BUT ANYTHING ALONG THAT LINE CAN BE UPSETTING TO SENSITIVE SOULS USED TO SPECTATOR GENTILITY NOT HOSTILITY FINALLY THERE PROBABLY WILL BE A CONTINUATION OF SUGGESTIONS THAT FUTURE AMERICAN TEAMS BE OPENED TO NONYANK REGULARS FROM THE PGA'S US TOUR THE LACK OF SUCH A RULE THIS YEAR KEPT THE PGA'S NOS 1 AND 3 MONEY WINNERS FOR 1993 NICK PRICE OF ZIMBABWE AND THE AUSTRALIAN GREG NORMAN FROM COMPETING IN GOLF'S TOP INTERNATIONAL EVENT ON THE ONE HAND THE SUGGESTION SEEMS BOTH SENSIBLE AND GENEROUS ON THE OTHER ITS ADOPTION WOULD DIM THE NATIONALISTIC FERVOR THAT SURROUNDS THE RYDER CUP WILL IT BE ADOPTED 9309170025 930917 ECONOMY AUTO MAKERS PLAN TO RAISE OUTPUT 127 IN QUARTER IN HOPES OF FURTHER RECOVERY BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US AUTO MAKERS GAMBLING THAT THE INDUSTRYWIDE RECOVERY WILL STRENGTHEN PLAN TO BUILD 127 MORE VEHICLES IN THE FOURTH QUARTER THAN IN THE WEAK YEAREARLIER PERIOD THE INDUSTRY PLANS TO PRODUCE 2876508 PASSENGER CARS AND LIGHT TRUCKS IN THE OCTOBERDECEMBER PERIOD COMPARED WITH THE YEAREARLIER 2552995 INDUSTRY SOURCES SAID THE BIG THREE AUTO MAKERS APPEAR PARTICULARLY AMBITIOUS AS THEY PLAN TO BOOST OUTPUT TO 2378675 VEHICLES A 154 INCREASE GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP HOPE TO CASH IN ON RECOVERING SALES BY WINNING BACK MARKET SHARE FROM RIVAL JAPANESE AUTO COMPANIES HELPING THE US COMPANIES WILL BE A NARROWING QUALITY GAP BETWEEN DETROIT AND THE JAPANESE ALONG WITH A WIDENING PRICE GAP WITH THE AVERAGE PRICE OF JAPANESE CARS ABOUT 2800 ABOVE THE AVERAGE PRICE OF DETROIT'S CARS THE BIG THREE AUTO MAKERS ALSO HAVE THEIR EYES ON EARNINGS GM IS LOOKING TO RESTORE PROFITABILITY AT ITS CORE NORTH AMERICAN OPERATIONS BY YEAR END AND FORD WANTS TO STRENGTHEN ITS NORTH AMERICAN PROFIT TO OFFSET WEAK SALES IN RECESSIONARY EUROPE INDEED THE BIGGEST PLANNED INCREASE IS IN THE LIGHTTRUCK SEGMENT WHICH IS DOMINATED BY DETROIT AND IS MORE PROFITABLE THAN THE PASSENGERCAR MARKET IN ADDITION SALES OF MINIVANS PICKUPS AND SPORTUTILITY VEHICLES HAVE BEEN MORE ROBUST THAN SALES OF PASSENGER CARS OVERALL US AUTO MAKERS PLAN TO BUILD 1283028 LIGHT TRUCKS IN THE QUARTER UP 168 INDUSTRY SOURCES SAID OUTPUT FOR CARS IS EXPECTED TO RISE ONLY 95 TO 1593480 IT'S A REALISTIC SCHEDULE BUT A LOT DEPENDS ON THE SELLING RATE IMPROVING OR STABILIZING SAID STEPHEN GIRSKY PAINEWEBBER INC'S AUTO ANALYST TO SUPPORT THE INDUSTRY'S AMBITIOUS PRODUCTION PLANS THE PACE OF SALES WILL HAVE TO HIT AN ANNUAL RATE OF 14 MILLION TO 145 MILLION VEHICLES UP FROM AUGUST'S 135 MILLION MR GIRSKY BLAMED A SUMMER SLOWDOWN ON A SHORTAGE OF POPULAR SELLING VEHICLES INVENTORY LEVELS OF NEW CARS AND TRUCKS ARE LEAN AT THE END OF AUGUST INVENTORIES OF USBUILT LIGHT VEHICLES STOOD AT A 57DAY SUPPLY COMPARED WITH A 63DAY SUPPLY A YEAR EARLIER ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL THE INDUSTRY'S NORM IS CONSIDERED A 65TO70DAY SUPPLY THE US CAR PRODUCTION ESTIMATES OFFER A SOMEWHAT SKEWED PICTURE OF THE INDUSTRY BECAUSE THEY DON'T INCLUDE PLANNED PRODUCTION AT ASSEMBLY PLANTS IN CANADA WHICH BUILDS SUCH MODELS AS CHRYSLER'S LH SEDANS GM'S BESTSELLING CAR CHEVROLET LUMINA AND FORD'S HIGHVOLUME FORD TEMPO AND MERCURY TOPAZ STILL FOURTHQUARTER US PRODUCTION PLANS INDICATE THAT THE AUTO MAKERS WILL BUILD AT 914 OF CAPACITY COMPARED WITH JUST 777 A YEAR EARLIER SAID RONALD A GLANTZ AUTO ANALYST AT DEAN WITTER SOME JAPANESE AUTO MAKERS ARE SCALING BACK FOURTHQUARTER PRODUCTION PLANS FROM YEAREARLIER LEVELS TOYOTA MOTOR CORP SHAVED ITS CAR OUTPUT ESTIMATE BY 8 TO 54529 VEHICLES A TOYOTA SPOKESWOMAN SAID THE 1992 QUARTER'S OUTPUT REFLECTS THE USE OF SATURDAY OVERTIME AT ITS GEORGETOWN KY ASSEMBLY PLANT THAT BUILDS THE CAMRY SEDAN NO SATURDAY OVERTIME IS PLANNED IN THE COMING QUARTER EVEN THOUGH CAMRY SALES ARE UP FROM A YEAR EARLIER THE SPOKESWOMAN SAID NISSAN MOTOR CO SLASHED ITS PLANNED FOURTHQUARTER LIGHT TRUCK OUTPUT BY 143 TO 25000 VEHICLES SALES OF ITS PICKUPS WERE OFF 139 IN THE FIRST EIGHT MONTHS OF THE YEAR FROM THE YEAREARLIER PERIOD AND AUTOALLIANCE INTERNATIONAL INC AN ASSEMBLY PLANT IN FLAT ROCK MICH JOINTLY OWNED BY FORD AND MAZDA MOTOR CORP TRIMMED ITS PLANNED CAR OUTPUT BY 54 TO 57924 VEHICLES HONDA MOTOR CO HOWEVER IS REVVING UP TO LAUNCH ITS RESTYLED ACCORD THIS FALL THE JAPANESE AUTO MAKER RAISED ITS FOURTHQUARTER PLANNED OUTPUT BY 6 TO 107000 CARS FORD IS BOOSTING ITS FOURTHQUARTER US CAR OUTPUT BY 141 TO 380000 AND LIGHT TRUCK PRODUCTION BY 176 TO 479000 CHRYSLER PLANS TO LIFT PRODUCTION OF ITS PASSENGER CARS BY 76 TO 128000 WHILE INCREASING LIGHT TRUCK PRODUCTION BY 128 TO 256000 GM PLANS TO BUILD 699067 PASSENGER CARS UP 14 AND 436608 LIGHT TRUCKS UP 205 HERE ARE THE US OUTPUT PLANS FOR THE FOURTH QUARTER 9309170024 930917 BUSINESS BRIEFS REHABCLINICS INC ACQUIRED SPORTS PHYSICAL THERAPISTS BRYN MAWR PA AN OUTPATIENT PHYSICAL THERAPY PRACTICE THE PURCHASE WILL SIGNIFICANTLY BOOST THE COMPANY'S SIZE TERMS WEREN'T DISCLOSED DATAPOINT CORP A COMPUTER NETWORKING CONCERN SIGNED AN AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO TO DISTRIBUTE AN AT&T AUTOMATED TELEPHONE CALLING SYSTEM IN EUROPE TERMS WEREN'T DISCLOSED PRICE WATERHOUSE WAS APPOINTED SPECIAL ADVISER OF ACCOUNTING PRUDENTIAL SUPERVISION AND REGULATORY ISSUES TO THE PEOPLE'S BANK OF CHINA CHINA'S CENTRAL BANK IN TWO THREEYEAR CONTRACTS TOTALING 72 MILLION GUY F ATKINSON CO'S ATKINSON CONSTRUCTION UNIT RECEIVED A 193 MILLION CONTRACT FOR THE EXCAVATION AND CONSTRUCTION OF A POWER HOUSE AT THE HYDROELECTRIC PROJECT AT MCNARY DAM IN WASHINGTON STATE FOR THE NORTHERN WASCO COUNTY PEOPLES' UTILITY DISTRICT 9309170023 930917 FOREIGN EXCHANGE YEN SPURTS AS TRADERS VOICE SKEPTICISM ON IMPACT OF JAPAN'S STIMULUS PACKAGE BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN ROSE SHARPLY THURSDAY AS TRADERS DECIDED THAT A STIMULUS PACKAGE UNVEILED BY THE JAPANESE GOVERNMENT WOULDN'T BE SUFFICIENT TO PULL THE JAPANESE ECONOMY OUT OF RECESSION OR PUT AN END TO US CALLS FOR A HIGHER YEN THE DOLLAR MANAGED TO INCH HIGHER AGAINST THE MARK THOUGH AS SOME PLAYERS TOOK PROFITS ON THE GERMAN CURRENCY'S RECENT GAINS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16025 MARKS UP FROM 15955 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10415 YEN DOWN SHARPLY FROM 10590 YEN STERLING WAS TRADING AT 15332 DOWN FROM 15495 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10415 YEN AND AT 16065 MARKS TRADERS WERE SKEPTICAL OF THE JAPANESE GOVERNMENT'S NEW 615 TRILLION YEN 5857 BILLION STIMULUS PACKAGE NOTING THAT IT LACKED THE CUTS IN TAXES AND INTEREST RATES THE MARKET HAD HOPED FOR WITHOUT THOSE MEASURES TRADERS SAID THE PLAN ISN'T LIKELY TO SATISFY THE US WHICH HAS BEEN STRONGLY PRESSING JAPAN TO STIMULATE ITS DOMESTIC ECONOMY AS A WAY TO LOWER ITS HUGE TRADE SURPLUS WITHOUT ANY TAX CUTS IT DOESN'T LOOK LIKE IT WILL HAVE A LONGLASTING EFFECT ON THE JAPANESE ECONOMY SAID TERRI REID A CORPORATE FOREIGNEXCHANGE ADVISER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO PEOPLE WERE EXPECTING BIGGER THINGS AGREED JOE CAMBRIA FOREIGNEXCHANGE MANAGER AT BANQUE PARIBAS IN NEW YORK LOOMING OVER THE DISAPPOINTMENT WITH THE PLAN WERE FEARS THAT US OFFICIALS COULD SOON RESUME THEIR CALLS FOR A HIGHER YEN AS AN ALTERNATIVE WAY TO PARE JAPAN'S TRADE SURPLUS EARLIER THIS YEAR CALLS IN THE US FOR A HIGHER YEN CAUSED THE JAPANESE CURRENCY TO SPURT ABOUT 20 HIGHER AGAINST THE DOLLAR AND WHILE NO SPECIFIC COMMENTS ON THE YEN'S LEVEL EMERGED FROM THE US TRADERS WERE QUICK TO POINT OUT THAT US OFFICIALS SEEMED LESS THAN ENTHUSIASTIC IN THEIR ASSESSMENTS OF THE NEW STIMULUS PACKAGE THE WHITE HOUSE FOR EXAMPLE CALLED THE PLAN A GOOD FIRST STEP BUT AT THE SAME TIME CITED THE NEED FOR EVEN MORE STIMULUS MEASURES AND TREASURY SECRETARY LLOYD BENTSEN SAID THAT HE HOPED THE NEW MEASURES WOULD BE COMBINED WITH APPROPRIATE MONETARY POLICY ACTIONS TAX REFORM AND THE FISCAL 1994 BUDGET TO GET JAPAN'S ECONOMY MOVING AND BRING DOWN THE TRADE SURPLUS WORD THAT THE PLAN WASN'T GOING TO BE AS BROAD AS EXPECTED FIRST SURFACED DURING THE AUSTRALASIAN TRADING DAY PROMPTING DEALERS TO DUMP THE DOLLAR BY THE TIME THE TOKYO MARKET CAME INTO FULL SWING THE DOLLAR WAS ALREADY ALMOST 150 YEN LOWER THAN ITS LEVEL LATE IN NEW YORK WEDNESDAY SENTIMENT ON THE DOLLAR THEN SOURED EVEN FURTHER WITH THE ARRIVAL OF THE FIRST LUKEWARM US ASSESSMENT OF THE PLAN WHICH CAME EVEN BEFORE THE PLAN WAS OFFICIALLY ANNOUNCED W BOWMAN CUTTER A DEPUTY ASSISTANT FOR ECONOMIC POLICY TO PRESIDENT CLINTON SAID IN AN INTERVIEW WITH A JAPANESE NEWSPAPER THAT A SIXTRILLIONYEN PACKAGE WAS NOT SO LARGE AND THAT AN INCOMETAX CUT WAS THE ONLY WAY TO HELP THE ECONOMY 9309170022 930917 ETHYL TO SPLIT BY SPINNING OFF CHEMICAL ASSETS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL ETHYL CORP JOINED THE RANKS OF COMPANIES PLANNING TO SPIN OFF OR SELL THEIR DEPRESSED CHEMICAL OPERATIONS AS THE INDUSTRY REMAINS MIRED IN A MULTIYEAR EARNINGS TROUGH THE RICHMOND VA FUEL ADDITIVE AND CHEMICAL COMPANY SAID LATE YESTERDAY THAT FOLLOWING THE RECOMMENDATION OF A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS IT PLANS TO SPIN OFF TO SHAREHOLDERS ABOUT 112 BILLION IN CHEMICAL ASSETS AS AN INDEPENDENT PUBLICLY TRADED COMPANY THE ASYETUNNAMED CHEMICAL COMPANY WILL HAVE 1993 SALES OF ABOUT 955 MILLION AND 3900 EMPLOYEES ETHYL SAID ETHYL'S ANNOUNCEMENT SOUNDED AN INCREASINGLY FAMILIAR REFRAIN AMONG CHEMICAL COMPANIES ON WEDNESDAY AMERICAN CYANAMID CO SAID IT WILL SPIN OFF 70 OF ITS MARGINALLY PROFITABLE CYTEC INDUSTRIES CHEMICAL BUSINESS TO SHAREHOLDERS THAT FOLLOWED TEXACO INC'S DISCLOSURE ON MONDAY THAT IT AGREED TO SELL ITS PETROCHEMICAL OPERATIONS FOR 106 BILLION TO A COMPANY JOINTLY OWNED BY CHEMICAL INDUSTRY ENTREPRENEUR JON HUNTSMAN AND AUSTRALIAN BUSINESSMAN KERRY PACKER EARLIER THIS SUMMER EASTMAN KODAK CO SAID IT WAS SPINNING OFF ITS EASTMAN CHEMICAL DIVISION AS A SEPARATE COMPANY AS WELL ETHYL'S ANNOUNCEMENT WAS MADE AFTER THE MARKET CLOSED YESTERDAY ETHYL'S STOCK CLOSED AT 1825 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ETHYL ADDED THAT IT EXPECTS THE NEW COMPANY WILL RAISE 100 MILLION IN CAPITAL MOST LIKELY THROUGH A PRIVATE PLACEMENT OF STOCK WITH THE GOTTWALD FAMILY WHICH ALREADY OWNS ABOUT 18 OF ETHYL THE PRIVATE PLACEMENT WOULD MAKE THE FAMILY MAJORITY OWNERS OF THE NEW COMPANY A SPOKESMAN SAID THE NEW COMPANY WILL INCLUDE A GRAB BAG OF INDUSTRIAL AND SPECIALTY CHEMICALS AS WELL AS PHARMACEUTICAL INGREDIENTS AND THE ASPIRIN SUBSTITUTE IBUPROFEN AFTER THE SPINOFF WHICH IS EXPECTED TO BE COMPLETED BY YEAR END ETHYL WILL RETAIN MAINLY FUEL AND LUBRICANT ADDITIVE BUSINESSES WITH ASSETS OF ABOUT 935 MILLION 1993 SALES OF 106 BILLION AND 1700 EMPLOYEES BRUCE C GOTTWALD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ETHYL SAID THAT BY CLEAVING THE COMPANY IN TWO ETHYL AIMS TO CREATE TWO STRONGER COMPANIES IN WHICH THE MANAGEMENT OF EACH CAN FOCUS ITS STRATEGIES AND RESOURCES ON THEIR RESPECTIVE CORE BUSINESSES 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 9309170021 930917 BUSINESS BRIEF WYMANGORDON CO PACT REACHED IN ACQUISITION OF COOPER'S CAMERON UNIT WYMANGORDON CO A WORCESTER MASS MAKER OF FORGED METAL COMPONENTS AND COOPER INDUSTRIES INC SAID THEY REACHED AN AGREEMENT IN PRINCIPLE FOR WYMANGORDON TO BUY COOPER'S CAMERON FORGED PRODUCTS DIVISION THE COMPANIES SAID WYMANGORDON WILL ISSUE 165 MILLION NEW SHARES OF ITS COMMON STOCK TO COOPER AND PAY COOPER 10 MILLION IN CASH THE STOCK TRADED LATE YESTERDAY AT 375 PLACING THE VALUE OF THE TRANSACTION AT ABOUT 719 MILLION IN ITS MOST RECENT QUARTERLY EARNINGS STATEMENT WYMANGORDON REPORTED IT HAD AN AVERAGE OF 18125000 COMMON SHARES LUIS LEON WYMANGORDON'S VICE PRESIDENT OF FINANCE AND TREASURER SAID THE COOPER DIVISION HAD ANNUAL REVENUES OF ABOUT 165 MILLION AND A BOOK VALUE OF ABOUT 135 MILLION COOPER IS A GLOBAL MANUFACTURER OF ELECTRICAL AND OTHER HEAVY INDUSTRIAL PRODUCTS 9309170020 930917 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN TAIWAN'S CENTRAL BANK LOWERED THE RESERVE REQUIREMENTS OF COMMERCIAL BANKS BY AS MUCH AS ONE PERCENTAGE POINT IN AN EFFORT TO SPUR INVESTMENT AND TWO GOVERNMENTOWNED BANKS RESPONDED WITH FURTHER CUTS IN LENDING RATES THE LONGAWAITED MOVE IS EXPECTED TO RELEASE 262 BILLION INTO THE TAIWAN ECONOMY WHICH HAS BEEN IN A SLUMP THIS YEAR EVEN BEFORE THE CENTRAL BANK ACTION NEARLY 20 BIG TAIWAN BANKS HAD LOWERED THEIR PRIME LENDING RATES IN PART BECAUSE OF GOVERNMENT REQUESTS TAIWAN'S RESERVE REQUIREMENTS AMONG THE HIGHEST IN THE WORLD HAVE RESTRICTED BANKING ACTIVITIES AND MADE IT MORE DIFFICULT FOR SMALL AND MIDSIZE BUSINESSES TO OBTAIN COMPETITIVELY PRICED LOANS UNDER THE NEW REQUIREMENTS WHICH TAKE EFFECT TODAY BANKS MUST PLACE AT LEAST 2625 OF THEIR CHECKING ACCOUNT DEPOSITS WITH THE CENTRAL BANK COMPARED WITH 2725 PREVIOUSLY RUSSIA AGREED TO GUARANTEE SUPPLIES OF FUEL FERTILIZERS AND EQUIPMENT FOR CUBA'S COMING SUGAR HARVEST AND TO IMPORT AT LEAST TWO MILLION TONS OF CUBAN SUGAR THE SUGAR SUPPORT PROGRAM IS PART OF THE FINANCE AND INVESTMENT ACCORDS SIGNED BY MOSCOW AND HAVANA IN NOVEMBER 1992 AND JULY THIS YEAR FOREIGN DIPLOMATS IN HAVANA SAID CUBA WAS RELYING ON RUSSIAN SUPPORT TO HELP REVIVE ITS FLAGGING SUGAR INDUSTRY WHOSE 19921993 OUTPUT FELL TO ABOUT FOUR MILLION TONS AMONG THE LOWEST EVER OFFICIALS BLAME BAD WEATHER CHRONIC EQUIPMENT SHORTAGES AND LOW SUGAR CANE PRODUCTION FOR THE DROP WHICH CUT CUBA'S SUGAR REVENUE BY ABOUT 500 MILLION NIGERIA'S NEW GOVERNMENT RESPONDING TO YEARS OF COMPLAINTS ABOUT CORRUPTION IN THE OIL BUSINESS SUSPENDED ALL OIL CONTRACTS AWARDED BY THE PREVIOUS MILITARY REGIME AND ORDERED A FULL AUDIT OF THE INDUSTRY'S BOOKS CITING EVIDENCE OF FRAUD AND WASTE THE ORDERS FOLLOWED THE GOVERNMENT'S DECISION MONDAY TO DISSOLVE THE HOLDING COMPANY THAT OVERSEES NIGERIAN OIL INTERESTS THE COMPANY IS ABOUT 318 MILLION IN THE RED THE AUDIT ALSO WILL FOCUS ON THE COMPANY'S FOREIGN ACCOUNTS WHICH NIGERIAN NEWSPAPERS CONTEND ARE USED TO FUNNEL PUBLIC FUNDS INTO PRIVATE POCKETS FRENCH PREMIER EDOUARD BALLADUR APPEALED TO CORPORATE EXECUTIVES TO AVOID LAYOFFS BUT LABOR GROUPS INTENSIFIED THEIR PROTESTS AFTER SIX LARGE COMPANIES ANNOUNCED HUGE JOB CUTS YESTERDAY STATERUN ARMS MAKER GIATINDUSTRIES CONFIRMED PLANS TO CUT 2300 JOBS BY 1995 AND FOUR OTHER STATERUN FIRMS AS WELL AS AUTO MAKER PSA PEUGEOT CITROEN SA PLAN MORE THAN 13000 CUTS MR BALLADUR SAID STATERUN COMPANIES SHOULD AVOID LAYOFFS TO SET AN EXAMPLE FOR PRIVATESECTOR EMPLOYERS THE LEFTIST GENERAL CONFEDERATION OF LABOR HAS CALLED FOR NATIONWIDE PROTESTS AND STRIKES ON SEPT 28 TO COINCIDE WITH THE START OF A SPECIAL NATIONAL ASSEMBLY SESSION TO ADDRESS FRANCE'S 117 JOBLESS RATE FOREIGN VISITORS CAME TO BRITAIN IN RECORD NUMBERS LAST YEAR AND SPENT MORE MONEY THAN EVER BEFORE DESPITE THE RECESSION AND THE STRONG POUND SOME 185 MILLION VISITORS ARRIVED IN BRITAIN LAST YEAR UP FROM 171 MILLION IN 1991 WHEN TOURISM WAS BATTERED BY THE PERSIAN GULF WAR SPENDING ROSE TO 12 BILLION FROM 11 BILLION IN 1991 TOURISM IS POISED TO BENEFIT THIS YEAR FROM A DEVALUED POUND WHICH BOOSTS FOREIGNERS' BUYING POWER RUSSIA SAID IT NEEDS THE HELP OF FOREIGN INVESTORS TO MODERNIZE ITS ANTIQUATED INDUSTRIAL PLANTS IN THE ARCTIC THE WORST POLLUTERS IN AN ENVIRONMENTALLY SENSITIVE REGION RUSSIA'S ENVIRONMENT MINISTER SPEAKING AT AN ARCTIC ENVIRONMENTAL CONFERENCE IN GREENLAND NOTED THAT NICKEL COPPER AND COBALT PRODUCTION AT RUSSIA'S HUGE INDUSTRIAL COMPLEX AT NORILSK IN NORTHERN SIBERIA IS THE BIGGEST SINGLE SOURCE OF POLLUTION IN THE ARCTIC REGION BRAZIL'S POOR NORTHEAST IS SUFFERING ITS WORST DROUGHT OF THE CENTURY WITH MILLIONS OF PEOPLE ON THE BRINK OF STARVATION IN THE HARDHIT STATE OF CEARA MOST RESERVOIRS HAVE GONE DRY FORCING THOUSANDS TO MIGRATE TO BIG CITIES EVEN COASTAL AREAS FACE SEVERE WATER SHORTAGES WITH THE RAINY SEASON OVER CEARA'S RAINFALL THIS YEAR HAS AMOUNTED TO LESS THAN HALF THE NORMAL LEVEL OF 29 INCHES THE SITUATION IS MOST CRITICAL IN RURAL AREAS WHERE THE DROUGHT HAS LED TO A COLLAPSE OF SUBSISTENCE FARMING THE STATE'S GOVERNOR ESTIMATES THAT TWOTHIRDS OF THE 198 MILLION PEOPLE IN RURAL CEARA ARE SUFFERING FROM HUNGER CEARA'S GOVERNMENT HAS RESPONDED TO THE CRISIS BY SPENDING ABOUT 15 MILLION A MONTH 75 OF ITS INVESTMENT BUDGET ON DROUGHTFIGHTING PUBLIC WORKS PROJECTS BESIDES PREPARING FAMILIES TO DEAL WITH FUTURE DROUGHTS OFFICIALS ARE ENCOURAGING RESIDENTS TO PROPOSE MINIPROJECTS SUCH AS WATER HOLES AND WELLS AN ESTIMATED 300000 RURAL FAMILIES ARE BENEFITING FROM THE PROGRAM BUT THE GOVERNOR SAYS AN ADDITIONAL 100000 FAMILIES STILL NEED HELP FRENCH FARMERS CONTINUED THEIR PROTESTS AGAINST A USEUROPEAN TRADE ACCORD FOR A SECOND DAY BLOCKING OFF ROADS WEST OF PARIS BUT THE ACTIVITY WAS LESS WIDESPREAD THAN ON WEDNESDAY AND CAUSED LITTLE DISRUPTION YIELDING TO US PRESSURE CHINA WILL BAN THE SALE OF MEDICINE CONTAINING RHINOCEROS HORNS AND TIGER BONES TO PROTECT THOSE ENDANGERED ANIMALS 9309170019 930917 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY MOST AMERICANS WANT CONGRESS TO COOPERATE WITH CLINTON A NEW WALL STREET JOURNAL/NBC NEWS POLL BUTTRESSES THE PRESIDENT AS HE SEEKS TO RALLY CONGRESSIONAL SUPPORT THE POLL SHOWS THAT DESPITE SOME RESERVATIONS ABOUT HIS AGENDA AMERICANS BY A 52TO38 MARGIN SAY THEY WOULD FAVOR A CANDIDATE WHO BACKS CLINTON ON THE ECONOMY HEALTH AND NAFTA OVER ONE WHO OPPOSES HIM THE MESSAGE IS DO SOMETHING GET SOMETHING DONE SAYING NO' IS NOT ENOUGH SAYS DEMOCRATIC POLLSTER PETER HART WHO CONDUCTED THE JOURNAL/NBC SURVEY WITH GOP POLLSTER ROBERT TEETER AMERICANS REMAIN DISDAINFUL OF CONGRESS BY 65 TO 24 THEY DISAPPROVE OF THE JOB CONGRESS IS DOING ONLY 37 BELIEVE THEIR OWN REPRESENTATIVE DESERVES REELECTION WHILE 47 SAY IT IS TIME TO GIVE A NEW PERSON A CHANCE STILL THAT IS AN IMPROVEMENT FROM JULY BY A MARGIN OF 32 TO 29 AMERICANS CURRENTLY EXPECT TO VOTE FOR THE DEMOCRATIC RATHER THAN GOP CONGRESSIONAL CANDIDATE NEXT YEAR PEROT'S STANDING SLIPS EVEN AS HIS ISSUES GAIN STRENGTH THE JOURNAL/NBC POLL SHOWS THE NUMBER OF AMERICANS WHO VIEW HIM FAVORABLY IS DOWN TO 36 FROM 47 SIX MONTHS AGO WHILE 35 NOW VIEW HIM NEGATIVELY THE POLL SHOWS THAT WHILE 48 BELIEVE PEROT THINKS NAFTA IS GENUINELY BAD FOR THE COUNTRY 39 THINK HIS MOTIVATION IS SIMPLY POLITICAL BUT HE STILL EDGES DOLE IN A THREEWAY PRESIDENTIAL RACE THOUGH CLINTON RUNS MORE THAN 10 POINTS AHEAD OF BOTH PEROT'S ARGUMENTS AGAINST THE FREETRADE PACT ARE CLEARLY RESONATING HIS STRATEGISTS BOAST THAT HIS ANTINAFTA BOOK WILL SHOW UP ON PAPERBACK BESTSELLER LISTS THIS WEEKEND HE HEADS FOR AN ANTINAFTA RALLY TOMORROW IN LANSING MICH AND AIDES SAY HE WILL DEVOTE 95 OF HIS TIME IN THE COMING WEEKS TO THE BATTLE CONSUMERS' OUTLOOKS BRIGHTEN SOME BUT LONGRUN WORRIES DEEPEN WHILE AMERICANS BELIEVE BY 49 TO 33 THAT THE NATION IS ON THE WRONG TRACK THAT IS ACTUALLY AN IMPROVEMENT FROM JULY'S 5527 ONE IN FOUR NOW EXPECT THE ECONOMY TO GET BETTER OVER THE NEXT YEAR THE SAME FRACTION EXPECT IT TO WORSEN IN JUNE AND JULY PESSIMISTS OUTNUMBERED OPTIMISTS BY NINE PERCENTAGE POINTS CONSUMER SPENDING IS GAINING STRENGTH SAYS ECONOMIST PAUL MCCULLEY OF UBS SECURITIES WITH MORTGAGE RATES LOW 73 SAY IT IS A GOOD TIME TO BUY A HOUSE UP FROM 62 A YEAR AGO BUT ONLY 25 ARE CONFIDENT THAT LIFE FOR THEIR CHILDREN WILL BE BETTER THAN IT IS FOR THEM DOWN FROM 41 JUST AFTER THE ELECTION WESTERNERS ARE LEAST CONFIDENT PROBABLY A REFLECTION OF CALIFORNIA'S ECONOMIC WOES THREEQUARTERS SAY CLINTON'S ECONOMIC PLAN WILL RAISE THEIR INCOME TAXES IN FACT FEWER THAN 10 WILL PAY MORE INCLUDING SOCIAL SECURITY RETIREES CLINTON'S TASK IN SELLING NAFTA IS TO CONVINCE AMERICANS THAT MORE JOBS WILL BE GAINED THAN LOST THE POLL SHOWS THAT IF HE COULD CONVINCE AMERICANS OF A NET JOB GAIN THEY WOULD BACK THE ACCORD BY 69 TO 21 CLINTON HAS INCREASED HIS PLANNED ATTENTION TO NAFTA OVER THE NEXT MONTH THOUGH IT WILL STILL TAKE UP LESS OF HIS TIME THAN HEALTH HILLARY AND LARRY HILLARY RODHAM CLINTON MOVING TO CENTER STAGE TO PROMOTE THE PRESIDENT'S HEALTHCARE PLAN IS SLATED TO APPEAR ON LARRY KING'S FIRST SATURDAY NIGHT TV SHOW EARLY NEXT MONTH IN THE NEW POLL THE FIRST LADY STILL HAS A POSITIVE RATING OF 46 TO 30 BUT HAS SLIPPED BEHIND HER HUSBAND'S RATING TAX CONCERNS HAVEN'T INCREASED SIGNIFICANTLY SINCE PASSAGE OF CLINTON'S TAX BOOST THE POLL SHOWS ONLY 11 RATE TAXES AS THE NATION'S BIGGEST ECONOMIC PROBLEM COMPARED WITH 10 IN JULY UNEMPLOYMENT REMAINS THE NO 1 CONCERN AT 40 REINVENTING GOVERNMENT STRIKES A RESONANT NOTE IN THE POLL A 37 PLURALITY SAY MAKING GOVERNMENT MORE EFFICIENT SHOULD BE THE TOP PRIORITY OF THE ADMINISTRATION AND CONGRESS THIS FALL COMPARED WITH 33 FOR HEALTH CARE ONLY 5 SAY NAFTA BY 55 TO 36 THEY SAY THE REVISINGGOVERNMENT EFFORT LED BY GORE IS GENUINE CLINTON FACES A SKEPTICAL PUBLIC ON COMMITTING US TROOPS ABROAD BY 52 TO 42 AMERICANS IN THE POLL SAY THE MILITARY SHOULD ONLY BE USED WHEN NATIONAL INTERESTS ARE AT STAKE NOT FOR HUMANITARIAN PURPOSES THEY ALSO BELIEVE BY 52 TO 36 THAT THE COUNTRY IS TOO DEEPLY INVOLVED IN SOMALIA WHILE 58 WOULD BACK AIR STRIKES ON SERBIAN TARGETS IN BOSNIA 59 TO 36 OPPOSE US GROUND TROOPS FOR PEACEKEEPING THERE IF THE TROOPS COULD BE SUBJECTED TO SNIPER FIRE TO MAKE A POSSIBLE BOSNIAN DEPLOYMENT OF US TROOPS GO DOWN A LITTLE EASIER THE US CONSIDERS WAYS TO LIMIT THE FINANCIAL COST ONE IDEA WOULD BE TO PAY FOR ANY DEPLOYMENT NOT THROUGH THE UN WHERE THE US WOULD BEAR 30 OF THE COST BUT THROUGH NATO WHERE THE US SHARE MIGHT BE LOWER INTERNAL PENTAGON FIGURES PUT THE COST OF SENDING 25000 TROOPS TO BOSNIA FOR TWO YEARS AT 25 BILLION TO 3 BILLION MINOR MEMOS TAKE ME OUT TO THE GRIDIRON ONLY 9 OF AMERICANS ARE SAD THE BASEBALL SEASON IS NEARING ITS END WHILE 31 ARE GLAD FOOTBALL IS GETTING UNDER WAY BUT 53 DON'T CARE EITHER WAY AMONG THE DIFFERENT GROUPS POLLED ONLY BLACKS THINK THE ISRAELIPALESTINIAN PEACE DEAL WILL WORK 9309170018 930917 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 BANC ONE ARIZONA NA 150 MILLION OF SUBORDINATED NOTES DUE SEPT 15 2005 PRICED AS 6S AT 99148 TO YIELD 6101 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON BANC ONE ARIZONA IS A UNIT OF BANC ONE CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE SEPT 26 2003 PRICED AT PAR TO YIELD 593 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 54 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FLAGSTAR COS 400 MILLION OF DEBT PRICED WEDNESDAY BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 275 MILLION OF SENIOR NOTES DUE SEPT 15 2001 WAS PRICED AT PAR TO YIELD 1075 THE NONCALLABLE NOTES WERE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE SECOND TRANCHE 125 MILLION OF SENIORSUBORDINATED NOTES DUE SEPT 15 2003 WAS PRICED AT PAR TO YIELD 11375 THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P FLORIDA POWER & LIGHT CO 125 MILLION OF FIRSTMORTGAGE BONDS DUE APRIL 1 2000 PRICED AT PAR TO YIELD 5375 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE COMPARABLE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P FLORIDA POWER & LIGHT IS A UNIT OF FPL GROUP INC FLORIDA POWER & LIGHT CO 125 MILLION OF FIRSTMORTGAGE BONDS DUE SEPT 1 2025 PRICED AT PAR TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 84 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P ANTEC CORP INITIAL OFFERING OF 815 MILLION COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ANTEC IS A UNIT OF ITEL CORP KIMCO REALTY CORP 75 MILLION OF PERPETUAL PREFERRED PRICED WITH A 775 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE PREFERRED IS NONCALLABE FOR FIVE YEARS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WASHINGTON MUTUAL SAVINGS BANK TWO MILLION SHARES OF 76 NONCUMULATIVE PERPETUAL PREFERRED STOCK PRICED AT 25 A SHARE PIPER JAFFRAY INC IS THE LEAD MANAGER FOR THE OFFERING DAIN BOSWORTH INC IS COMANAGER FEDERAL HOME LOAN MORTGAGE CORP 750 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1611 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES G020 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 118 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 249 BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 299 YEARS UNDERWRITERS INCLUDE BEAR STEARNS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP GOLDMAN SACHS & CO GREENWICH CAPITAL MARKETS INC MERRILL LYNCH & CO MORGAN STANLEY & CO FIRST BOSTON CORP UBS SECURITIES INC PRUDENTIAL SECURITIES INC NOMURA SECURITIES INTERNATIONAL INC AND NIKKO SECURITIES CO INTERNATIONAL FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993206 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993207 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1993205 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED TRUSTS 215 AND 240 WHICH IN TURN ARE BACKED BY 30YEAR 7 MORTGAGE SECURITIES ABB INTERNATIONAL FINANCE NV SWISSSWEDISH PARENT 100 MILLION CANADIAN DOLLARS OF COLLARED FLOATINGRATE EURONOTES DUE OCTOBER 2003 AT ISSUE AND REOFFER PRICE PAR VIA DEUTSCHE BANK AG INTEREST PAYABLE QUARTERLY AT 30 BASIS POINTS BELOW THREEMONTH CANADIAN BANKER'SACCEPTANCE RATE MINIMUM COUPON OF 6 AND A MAXIMUM OF 885 KEEPWELL AGREEMENT WITH PARENT FEES 05 BANCO NACIONAL DE OBRAS Y SERVICIOS PUBLICOS SNC MEXICO 100 MILLION OF 6875 EUROBONDS AT ISSUE PRICE 101095 DUE OCT 1 1998 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 9997 TO YIELD 210 BASIS POINTS OVER COMPARABLE US TREASURY FEES 1875 INTEREST PAYABLE SEMIANNUALLY DE NATIONALE INVESTERINGS BANK NV NETHERLANDS 150 MILLION ECU OF 6 EUROBONDS DUE OCT 6 1998 AT ISSUE PRICE 101095 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 9947 TO YIELD 6126 A MARGIN OF 34 BASIS POINTS BELOW COMPARABLE FIVEYEAR FRENCHGOVERNMENT ECU BONDS FEES 1875 DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK GERMANY 10 BILLION SPANISH PESETAS OF 875 EUROBONDS DUE OCT 14 1998 AT ISSUE PRICE 1014 VIA MIDLAND BANK PLC AND BANCO DE NEGOCIOS ARGENTARIA SA AT COMANAGERS' BREAKEVEN PRICE OF 999 BONDS YIELD 8776 A SPREAD OF 12 BASIS POINTS BELOW THE COMPARABLE SPANISHGOVERNMENT BOND GUARANTOR GERMANY FEES 1625 LESS 0125 FOR LEAD MANAGERS EUROMOL BV JAPANESE PARENT FIVE BILLION YEN OF 42 EUROBONDS DUE FEB 2 1999 AT ISSUE AND FIXED REOFFER PRICE OF 10027 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS PRICED TO YIELD 414 KEEPWELL AGREEMENT WITH MITSUI OSK LINES FEES 035 POINT INTERNATIONALE NEDERLANDEN BANK NV NETHERLANDS 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE OCT 18 2005 AT ISSUE AND FIXED REOFFER PRICE OF 99875 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE LESS 025 POINT SUBJECT TO MINIMUM COUPON OF 5 AND MAXIMUM 8 FEES 05 ITALY SOVEREIGN 55 BILLION OF TWOTRANCHE GLOBAL BONDS VIA JOINT LEAD UNDERWRITERS GOLDMAN SACHS & CO AND SALOMON BROTHERS INC FIRST TRANCHE FOR 2 BILLION OF 6 BONDS DUE SEPT 27 2003 AT ISSUE AND FIXED REOFFER PRICE OF 99851 TO YIELD 602 SEMIANNUALLY A MARGIN OF 62 BASIS POINTS ABOVE THE 575 US TREASURY DUE 2003 SECOND TRANCHE FOR 35 BILLION 6875 BONDS DUE SEPT 27 2023 AT ISSUE AND FIXED REOFFER PRICE OF 98725 TO YIELD 6977 SEMIANNUALLY A MARGIN OF 80 BASIS POINTS ABOVE THE 7125 TREASURY DUE 2023 FEES 035 FOR 10YEAR TRANCHE AND 05 FOR 30YEAR TRANCHE MITSUI & CO JAPAN 10 BILLION YEN OF EUROBONDS IN FIXED FLOATINGRATE TRANCHES DUE JAN 6 1999 AT ISSUE PRICE 101975 AND FIXED REOFFER PRICE 10035 VIA LEAD UNDERWRITER BANK OF TOKYO CAPITAL MARKETS LTD FIRST TRANCHE FOR FIVE BILLION YEN OF FLOATINGRATE EURONOTES PAYS INTEREST AT 375 BASIS POINTS BELOW SIXMONTH LIBOR UNTIL JANUARY 1996 AT MINIMUM COUPON 4 AND MAXIMUM 6 SECOND TRANCHE FOR FIVE BILLION YEN OF STEPUP FIXEDRATE NOTES WHICH PAY INTEREST AT 4 UNTIL JAN 6 1997 THEREAFTER AT 53 NOTES CALLABLE AT PAR ON JAN 6 1997 FEES 1875 SUDWEST LB CAPITAL MARKETS PLC GERMAN PARENT ONE BILLION FRENCH FRANCS OF 575 EUROBONDS DUE OCT 14 1998 AT ISSUE PRICE OF 100928 VIA MERRILL LYNCH CAPITAL MARKETS FRANCE REOFFERED AT 99303 TO YIELD 5915 A SPREAD OF 20 BASIS POINTS ABOVE COMPARABLE FRENCHGOVERNMENT BOND GUARANTOR SUDWESTDEUTSCHE LANDESBANK GIROZENTRALE FEES 1875 VENEZUELA SOVEREIGN 300 MILLION MARKS OF 875 SENIOR EUROBONDS DUE OCT 15 2000 AT ISSUE PRICE 1014 VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE BONDS YIELD 898 AT COMANAGERS' BREAKEVEN PRICE OF 9885 FEES 275 LESS 02 FOR LEAD MANAGER 9309170017 930917 WHAT'S NEWS BUSINESS AND FINANCE HEALTH PLAN SUBSIDIES THAT CLINTON'S REFORM PROGRAM PROMISES SMALL BUSINESSES WOULD BE PHASED OUT AFTER EIGHT TO 10 YEARS ADMINISTRATION OFFICIALS TOLD THE WALL STREET JOURNAL THEY WANT TO DISCOURAGE CORPORATIONS FROM SPINNING OFF SMALL COMPANIES INTO LOWWAGE FIRMS IN ORDER TO QUALIFY FOR GOVERNMENT FINANCIAL ASSISTANCE IN BUYING HEALTH INSURANCE CIGNA PLANS TO CUT UP TO 1000 JOBS IN ITS BOOMING HEALTHINSURANCE BUSINESS TO PREPARE FOR HEALTH REFORM FORD'S AGREEMENT WITH THE UAW REPRESENTS A SETBACK FOR GENERAL MOTORS GM PRESIDENT JOHN SMITH SOUGHT TO CONVINCE UNION LEADERS THAT GM NEEDS FUNDAMENTAL LABORCOST CHANGES TO MAKE ITS US VEHICLE OPERATIONS COMPETITIVE BUT THOSE CHANGES AREN'T INCLUDED IN THE FORD PACT WHICH THE UAW PLANS TO USE AS THE PATTERN FOR CONTRACTS WITH GM AND CHRYSLER US AUTO MAKERS PLAN TO BUILD 127 MORE VEHICLES IN THE FOURTH QUARTER THAN A YEAR EARLIER A GAMBLE THE INDUSTRY'S RECOVERY WILL STRENGTHEN JAPAN UNVEILED A 5857 BILLION PACKAGE TO SPUR THE ECONOMY BUT THE PLAN DOESN'T INCLUDE AN INCOMETAX CUT SOUGHT BY BUSINESS LEADERS AND WASHINGTON TO BOOST SPENDING TOKYO STOCKS FELL 21 AS INVESTORS REACTED NEGATIVELY TO REPORTS OF THE PLAN CORPORATE PROFITS WILL BE HURT IN THE THIRD QUARTER BY A NEW ACCOUNTING RULE THE RECENT RISE IN TAX RATES ESSENTIALLY FORCES COMPANIES TO SET UP ONETIME RESERVES PUSHING EARNINGS FOR MANY FIRMS BELOW ESTIMATES INDUSTRIAL OUTPUT CLIMBED 02 IN AUGUST FOLLOWING A 04 RISE IN JULY AND A REVISED 02 GAIN IN JUNE THE NATION'S TRADE DEFICIT NARROWED IN JULY AND CLAIMS FOR UNEMPLOYMENT BENEFITS WERE LITTLE CHANGED LAST WEEK BOND PRICES FELL PUSHING LONGTERM INTEREST RATES BACK ABOVE 6 THE TREASURY'S 30YEAR ISSUE LOST MORE THAN 3/4 POINT TO YIELD 603 THE DOW JONES INDUSTRIAL AVERAGE EASED 280 POINTS TO 363085 IN LACKLUSTER TRADING BANKS HAVE STEPPED UP THEIR COMMERCIAL REALESTATE LENDING AFTER SHUNNING THE MARKET FOR THE PAST FEW YEARS BANK OF BOSTON FLEET FINANCIAL GROUP AND NATIONSBANK ARE AMONG THE LENDERS SEEKING NEW REALESTATE BUSINESS KODAK INTENDS TO NAME A NEW CHIEF EXECUTIVE IN AS LITTLE AS SIX WEEKS AND IS SAID TO BE PURSUING THE HEAD OF A CONSUMER PRODUCTS COMPANY IBM WILL INTRODUCE NEXT WEEK AN ENTRYLEVEL WORKSTATION THAT USES THE MUCHAWAITED POWERPC MICROPROCESSOR A CHIP IBM HOPES WILL PUT PRESSURE ON INTEL'S DOMINANCE OF THE FIELD TELECOMMUNICATIONS INC WILL TEAM UP WITH GERMANY'S BERTELSMANN TO LAUNCH A HYBRID MUSICVIDEO HOMESHOPPING CABLE CHANNEL THAT COULD PROVIDE THE FIRST MAJOR COMPETITION TO VIACOM INC'S MTV NETWORK ETHYL PLANS TO SPIN OFF ABOUT 112 BILLION IN CHEMICAL ASSETS MAKING IT THE THIRD BIG COMPANY THIS WEEK TO JETTISON DEPRESSED CHEMICAL OPERATIONS BONDS LEHMAN BROTHERS TREASURY INDEX 560263 OFF 2420 COMMODITIES OIL 1683 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12568 UP 005 SPOT INDEX 12188 UP 016 DOLLAR 10415 YEN OFF 175 16025 MARKS UP 00070 9309170016 930917 ECONOMY NEW TAX RATE TO PUSH PROFITS BELOW FORECASTS ACCOUNTING RULE TO FORCE FIRMS TO SET UP RESERVE FOR THE THIRD QUARTER BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL THE RECENT INCREASE IN THE CORPORATE TAX RATE WILL TAKE A BIGGERTHANEXPECTED BITE OUT OF THIRDQUARTER EARNINGS BUT NOT BECAUSE OF CONGRESS OR PRESIDENT CLINTON THE REASON IS A NEW ACCOUNTING RULE ISSUED EARLY LAST YEAR BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THE RULE ESSENTIALLY FORCES US COMPANIES TO SET UP A ONETIME RESERVE WHENEVER CORPORATE TAXES GO UP BECAUSE THE NEW DEFICITREDUCTION LAW WHICH RAISED THE CORPORATE TAX RATE TO 35 FROM 34 WAS PASSED IN AUGUST COMPANIES MUST TAKE THE RESERVE IN THE THIRD QUARTER THE HITS WILL PUSH THIRDQUARTER EARNINGS FOR MANY COMPANIES BELOW MOST ANALYSTS' ESTIMATES AS THE ACCOMPANYING TABLE SHOWS IN A WORSTCASE SCENARIO THE DECLINE COULD RANGE FROM AS LITTLE AS 5 FOR UNITED TECHNOLOGIES CORP TO ABOUT 380 FOR GEORGIAPACIFIC CORP ACCORDING TO THE ACCOUNTING OBSERVER NEWSLETTER PUBLISHED BY RG ASSOCIATES IN BALTIMORE GEORGIAPACIFIC IS EXPECTED TO POST A LOSS OF ABOUT 28 CENTS A SHARE AS OPPOSED TO A PROFIT OF ABOUT 10 CENTS A SHARE THE NEWSLETTER ESTIMATES OF COURSE THE TAX RISE ITSELF WILL SHAVE CORPORATE PROFITS FROM NOW ON BUT MANY ANALYSTS AND INVESTORS WERE UNAWARE OF THE ADDED ONETIME PENALTY THAT THE NEW ACCOUNTING RULE IMPOSES PREVIOUSLY TAX LIABILITIES SIMPLY BUILT UP ON CORPORATE BALANCE SHEETS AND A CHANGE IN TAX RATES DIDN'T REQUIRE A PROFITPINCHING INCREASE IN COMPANY RESERVES BUT THE FASB FELT THAT COMPANIES SHOULD ACCOUNT ON THEIR BALANCE SHEETS FOR FUTURE TAXES THEY MUST PAY SO THE RULEMAKERS DECIDED THAT WHENEVER THE TAX RATES GO UP COMPANIES MUST MAKE A ONETIME CATCHUP DEDUCTION FOR PROFITS FIGURED AT PREVIOUS TAX RATES SOME COMPANIES ACCUMULATED SUCH BIG DEFERREDTAX LIABILITIES ON THEIR BALANCE SHEETS THAT WHEN CORPORATE TAXES WERE REDUCED FROM 46 TO 34 A FEW YEARS AGO THEY COMPLAINED THAT THE BALANCE SHEET DIDN'T REFLECT REALITY SAYS KEVIN MEAD A PROJECT MANAGER FOR THE FASB THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS SO THE FASB ISSUED THE RULE ON DEFERRED TAXES EARLY IN 1992 EFFECTIVE FOR FISCAL YEARS BEGINNING AFTER LAST DEC 15 ROBERT WILLENS AN ACCOUNTING ANALYST FOR AMERICAN EXPRESS CO'S LEHMAN BROTHERS SAID THE ACCOUNTING RULE WILL HAVE THE BIGGEST IMPACT ON CAPITALINTENSIVE COMPANIES SUCH AS THOSE IN AUTOS STEEL AND OIL OTHER COMPANIES HEAVILY AFFECTED HE SAID WILL BE THOSE THAT HAVE MADE ACQUISITIONS USING SOCALLED PURCHASE ACCOUNTING SUCH TAKEOVERS CAN LEAD TO DEFERREDTAX LIABILITIES ON THE BALANCE SHEET AND CAN PENALIZE PROFITS THE REASON IS THAT ACCOUNTANTS WANT TO SHOW THAT THE ASSETS ACQUIRED EVEN THOUGH BOOKED AT THEIR ORIGINAL COST COULD PROBABLY BE SOLD FOR MORE LATER ON FOR EXAMPLE COCACOLA CO THIS WEEK NOTED THAT THE EFFECTS OF THE DEFERREDTAX ACCOUNTING RULE WOULD REDUCE ITS ANNUAL PROFIT ONLY 19 MILLION OR ONE CENT A SHARE BUT ITS 44OWNED SUBSIDIARY COCACOLA ENTERPRISES INC WHICH HAS BEEN ACQUIRING A LOT OF BOTTLING OPERATIONS PREVIOUSLY INDICATED THE ACCOUNTING RULE WILL PENALIZE 1993 PROFIT 40 MILLION OR 31 CENTS A SHARE MR WILLENS SAID THAT WHEN THE FASB ISSUED ITS RULE IN EARLY 1992 INVESTORS WEREN'T MADE AWARE BY MOST ANALYSTS THAT IF THERE IS A FUTURE TAX BOOST THE PROFITS OF THE COMPANIES IN WHICH THEY INVEST WILL TAKE AN IMMEDIATE HIT NOW THE OTHER SHOE HAS DROPPED HE SAID THOUGH IT'S TOO EARLY TO COMPUTE THE COMBINED EFFECT OF THE TAX BOOST AND ACCOUNTING RULE ON MOST COMPANIES JACK CIESIELSKI PUBLISHER OF RG ASSOCIATES' ACCOUNTING OBSERVER NEWSLETTER DOESN'T THINK WALL STREET IS PROPERLY ASSESSING THE IMPACT OF THE ACCOUNTING RULE STOCK ANALYSTS SEEM TO BE IGNORING THE CATCHUP AMOUNT REQUIRED BY THE RULE HE SAID INVESTORS WHO PUT THEIR MONEY DOWN BASED ON ANALYSTS' CURRENT ESTIMATES FOR THIRDQUARTER PROFITS ARE GOING TO BE MIGHTILY DISAPPOINTED AND AFTER QUARTERLY PROFITS ARE RELEASED IN OCTOBER THEY'RE GOING TO GO BACK AND SHOOT SOME OF THEIR FAVORITE STOCKS JANET PEGG AN ACCOUNTING ANALYST FOR BEAR STEARNS & CO AGREED COMPANIES SHE SAID ARE DISCOVERING THAT THE NEW TAX ACT IS HAVING A MORE IMMEDIATE IMPACT ON THEIR REPORTED EARNINGS AND SOME ANALYSTS MAY BE CAUGHT UNAWARE BY THESE ADJUSTMENTS HERE'S HOW AN ACCOUNTING RULE MAY SHAVE THIRDQUARTER PROFITS ONE ACCOUNTING NEWSLETTER SAYS 9309170015 930917 ADVERTISING CANDICE BERGEN LEADS THE LIST OF TOP CELEBRITY ENDORSERS BY KEVIN GOLDMAN HALF OF THIS YEAR'S LIST IS COMPOSED OF CELEBRITIES WHO DIDN'T MAKE THE CUT LAST YEAR THE STAR WHO CATAPULTED THE FURTHEST IS CHER COMING FROM NOWHERE TO LAND AT NO 3 SURVEY RESPONDENTS REMEMBER HER COMMERCIALS TOUTING EQUAL THE ARTIFICIAL SWEETENER FROM NUTRASWEET THE SURVEY RATES THE EFFECTIVENESS AND POPULARITY OF ENDORSERS BASED ON THE RESPONSES OF 3000 PEOPLE POLLED BY TELEPHONE AND MAIL FROM JANUARY THROUGH JUNE BY VIDEO STORYBOARD TESTS A NEW YORKBASED COMPANY THE LIST IS CAREFULLY SCRUTINIZED BY MADISON AVENUE EXECUTIVES AND TALENT AGENTS TO DETERMINE THE MOST EFFECTIVE PRODUCT PITCHMEN THE RATINGS HAVE ASSUMED MORE IMPORTANCE OF LATE AS MARKETERS REEVALUATE THE COSTEFFECTIVENESS OF SIGNING MEGAMILLIONDOLLAR DEALS WITH CELEBRITY ENDORSERS INDEED USING A COMPANY'S ACTUAL EMPLOYEES OR CUSTOMERS TO TALK UP A PRODUCT'S ATTRIBUTES IS GAINING POPULARITY MCI COMMUNICATIONS FOR EXAMPLE IS HAVING GREAT SUCCESS WITH ITS FRIENDS AND FAMILY CAMPAIGN WHICH USES ACTUAL OPERATORS IN A VAST COMMUNICATIONS CENTER TO SELL THE SERVICE ACTORS CAN FAKE AN EMOTION REAL EMPLOYEES DON'T SAYS AN INDIVIDUAL WHO WORKS ON THE MCI COMMERCIALS IN ADDITION THE VIEWING PUBLIC HAS GROWN JADED ABOUT CELEBRITY ENDORSERS AFTER SOME EMBARRASSING INCIDENTS IN WHICH STARS WERE REVEALED NOT TO BE USERS OF THE PRODUCTS THEY WERE PUSHING OR WORSE THE CELEBRITIES HAVE FALLEN FROM GRACE TAKE FOR EXAMPLE BURT REYNOLDS THE PITCHMAN FOR FLORIDA CITRUS COMMISSION AND QUAKER STATE MR REYNOLDS VAULTED FROM NOWHERE TO NO 5 ON THIS YEAR'S SURVEY BUT THAT DISTINCTION IS EXPECTED TO BE SHORTLIVED BOTH COMPANIES DROPPED HIM ONCE DETAILS OF HIS MESSY DIVORCE FROM ACTRESS LONI ANDERSON MADE TABLOID HEADLINES DON'T EXPECT TO SEE MR REYNOLDS NEXT YEAR SAYS DAVID VADEHRA VIDEO STORYBOARD'S PRESIDENT THE LIST CONTAINS AT LEAST ONE SURPRISE SALLY STRUTHERS THE WHINY DAUGHTER ON THE 1970S CBS HIT ALL IN THE FAMILY LANDED IN EIGHTH PLACE FOR HER COMMERCIAL ABOUT CHRISTIAN CHILDREN'S FUND WHICH ASSISTS CHILDREN IN MORE THAN 40 COUNTRIES MS STRUTHERS IS THE INTERNATIONAL CHAIRWOMAN OF THE ORGANIZATION YOU CAN'T WATCH THAT COMMERCIAL AND NOT CRY BY THE END SAYS MR VADEHRA EXPLAINING MS STRUTHERS'S POPULARITY WITH VIEWERS OTHER NEWCOMERS INCLUDE TALKSHOW HOST REGIS PHILBIN AND SOAP STAR SUSAN LUCCI CELEBRITIES DROPPED FROM THIS YEAR'S LIST ARE FLORENCE HENDERSON FOR WESSON OIL CHARLTON HESTON FOR THE NATIONAL REVIEW THE LATE MICHAEL LANDON WHO STARRED IN AN INFOMERCIAL FOR A REMEDIAL EDUCATION AID LINDA EVANS FOR CLAIROL AND DELTA BURKE PLUGGING HER OWN FAILED SERIES ON CAPITAL CITIES/ABC'S NETWORK WITH THE EXCEPTION OF MODEL CINDY CRAWFORD WHO IS RANKED NO 4 FOR HER REVLON COMMERCIALS THOSE ON THE LIST ARE OLDER THAN THE 18TO34YEAROLD AGE GROUP THAT ADVERTISERS MOST COVET MR VADEHRA EXPLAINS THAT ADVERTISERS TEND NOT TO SIGN YOUNG HOT ACTORS BECAUSE THEIR OFFSCREEN BEHAVIOR IS TOO UNPREDICTABLE MS BERGEN WHO PLAYS THE GLIB AND CAUSTIC BROADCAST JOURNALIST MURPHY BROWN ON THE HIT CBS SERIES BREAKS THROUGH THE CLUTTER OF TELECOMMUNICATIONS ADS WITH HER STRONG YET LIKABLE PERSONALITY SAYS RUDI GOLYN SENIOR VICE PRESIDENT AND COCREATIVE DIRECTOR OF J WALTER THOMPSON'S SAN FRANCISCO OFFICE WHICH HANDLES THE SPRINT ACCOUNT WE WERE TRYING TO CREATE A BRAND PERSONALITY THAT WAS WITTY AND APPEALING THAT'S CANDICE FOR ITS PART PEPSICO SAYS IT ISN'T CONCERNED ABOUT RAY CHARLES'S PRECIPITOUS DROP HE IS STILL A LEGEND AND THE MOSTLIKED PERSONALITY A SPOKESWOMAN SAYS THE COMPANY SAYS IT PLANS TO CONTINUE USING MR CHARLES IN ITS COMMERCIALS ALTHOUGH HIS THREE BACKUP SINGERS KNOWN AS THE UHHUH GIRLS WERE SHOWCASED ALONE THIS PAST SUMMER IN TELEVISION SPOTS FOR DIET PEPSI PEPSI'S RIVAL COCACOLA IS MISSING FROM THE LIST ENTIRELY FOR THE SECOND CONSECUTIVE YEAR IT HASN'T APPEARED SINCE 1991 WHEN ROCKER PAULA ABDUL KICKED UP A STORM FOR THE DIET COKE BRAND NOR IS COKE LIKELY TO SHOW ANYTIME SOON IT NO LONGER USES CELEBRITY SPOKESMEN AT ALL AND ITS NEWEST ICONS THE POPULAR POLAR BEARS WHO CHUG COKE WHILE WATCHING THE BRILLIANT NORTHERN LIGHTS HAVEN'T SHOWN UP ON VIDEO STORYBOARD'S PRESENTERS OTHER THAN HUMANS SURVEY HOWEVER MR VADEHRA PREDICTS THE CHARACTERS WILL SOON JOIN SUCH CREATURES AS THE ENERGIZER BUNNY WHO JUST KEEPS GOING AND GOING AND GOING MORRIS THE CAT AND THE CALIFORNIA RAISINS IN VIDEO STORYBOARD'S SEPARATE SPORTS LIST A FEMALE ATHLETE MADE THE TOP 10 FOR THE FIRST TIME SINCE 1986 WHEN OLYMPIC GYMNAST MARY LOU RETTON WAS INCLUDED THIS YEAR TENNIS STAR CHRIS EVERT WHO POUNDS AWAY FOR PAIN RELIEVER NUPRIN SHOWS UP IN THE NO 7 SLOT MR VADEHRA SAYS THE REAL DISAPPOINTMENT IS AFFABLE PROFESSIONAL BASKETBALL STAR SHAQUILLE O'NEAL WHO APPEARED IN REEBOK AND PEPSI ADS YET WAS ONLY RANKED NO 9 THERE WAS SUCH AN AD BLITZ WITH SHAQ THAT I'M SURPRISED HE DIDN'T COME IN HIGHER MR VADEHRA SAYS ANOTHER BASKETBALL SUPERSTAR LARRY BIRD LEAPT OVER THE COMPETITION GOING TO NO 3 FROM NO 9 ON THE BASIS OF A MCDONALD'S COMMERCIAL IN WHICH HE AND CHICAGO BULLS STAR MICHAEL JORDAN SHOOT HOOPS MR JORDAN REMAINS NO 1 NO PARTICULAR SURPRISE GIVEN THAT THE SUPERSTAR EARNS MORE THAN 15 MILLION ANNUALLY ENDORSING AN ARRAY OF PRODUCTS THOSE WHO DROPPED OFF THE ATHLETIC LIST ARE NOLAN RYAN ARNOLD PALMER AND TOMMY LASORDA SIMPLY THEIR NEWS VALUE IS DROPPING MR VADEHRA SAYS BUT THE SURVEY ALSO POINTS UP THE DUBIOUS VALUE OF CELEBRITY ENDORSERS WHETHER THE MARQUEE NAME COMES FROM THE WORLD OF MOVIES AND TELEVISION OR FROM SPORTS TAKE FOR EXAMPLE SUSAN LUCCI THE VIXEN OF THE ABC SOAP ALL MY CHILDREN AND PERENNIAL ALSORAN IN THE DAYTIME EMMYS SHE ACHIEVED A RESPECTABLE NO 7 FOR PITCHING A CERTAIN MAKE OF AUTOMOBILE BUT ONLY 15 OF THOSE SURVEYED BY VIDEO STORYBOARD KNEW THAT MS LUCCI WAS PUSHING FORDS A HEFTY 75 COULDN'T REMEMBER AND EVEN WORSE 8 THOUGHT SHE WAS REPRESENTING RIVAL CHEVROLET THE REMAINING 2 SAID PLYMOUTH THAT'S BAD BUT NOT AS BAD AS THE RESULTS FOR JANINE TURNER WHO PLAYS A SPOILED AND MOODY PILOT IN THE CBS SERIES NORTHERN EXPOSURE SHE NOT ONLY FAILED TO MAKE THE LIST BUT 81 OF THOSE SURVEYED HAD NO IDEA WHAT CAR SHE WAS PEDDLING THE ANSWER CHEVROLET ONLY 10 OF THOSE ASKED KNEW THE CORRECT RESPONSE HACHETTE FILIPACCHI MAGAZINES WHICH PUBLISHES ROAD & TRACK AND CAR AND DRIVER SAID IT PLANS TO PRODUCE TWO EPISODES OF A TELEVISION SHOW WITH GENERAL MOTORS CORP TO BE AIRED IN NOVEMBER AND DECEMBER ON THE HOME SHOPPING NETWORK ENTITLED THE TV CAR SHOWROOM THE SHOWS ARE A TEST OF A POSSIBLE 24HOUR CABLE SERVICE THAT HACHETTE IS CONTEMPLATING FOR APRIL 1995 SAID DAVID PECKER HACHETTE'S PRESIDENT AND CHIEF EXECUTIVE GENERAL MOTORS IS PARTLY UNDERWRITING THE TEST BUT OTHER AUTO MAKERS WOULD BE INVITED TO PARTICIPATE IF THE SHOWS ARE EXPANDED TO A STANDALONE CABLE NETWORK MR PECKER SAID PETER ARNELL CHAIRMAN AND CHIEF EXECUTIVE OF THE ARNELL GROUP ADVERTISING AGENCY IS CREATIVE DIRECTOR OF THE SERVICE ALTHOUGH THE FORMAT HASN'T BEEN FINALIZED MR PECKER SAID IT WOULD PROBABLY INCLUDE HAVING HACHETTE'S AUTOMOTIVE EDITORS DELIVER CAR REVIEWS ON THE AIR GENERAL MOTORS' PONTIAC CARS WILL BE FEATURED IN THE PILOT EPISODES HOW HARSH WILL THE REVIEWS OF THE SHOW'S ONLY SPONSOR BE THE EDITORS WON'T SAY ANYTHING DIFFERENT THAN WHAT THEY SAID IN THE MAGAZINES MR PECKER SAID LICENSED MERCHANDISE WILL ALSO BE ON SALE AS WILL COUPONS FOR REBATES ON ACTUAL CARS PILOT PEN CORP A UNIT OF PILOT CORP OF TOKYO SAID IT PLANS TO RUN NEWSPAPER ADS SHOWING A CLOSEUP OF ISRAELI PRIME MINISTER YITZHAK RABIN USING A PILOT PEN TO SIGN THE PEACE TREATY WITH THE PALESTINIANS THERE'S A LINE BETWEEN WAR AND PEACE THE AD SAYS THIS ONE WAS WRITTEN WITH A PILOT PEN THE COMPANY IS SPENDING ABOUT 300000 TO RUN THE THREEQUARTER PAGE ADS IN MAJOR DAILY NEWSPAPERS IN NEW YORK LOS ANGELES WASHINGTON ATLANTA MIAMI CHICAGO AND DALLAS ON MONDAY RONALD SHAW PILOT PEN'S PRESIDENT SAID HE SAW HIS PRODUCT IN THE HAND OF THE ISRAELI LEADER IN A CLOSEUP SHOT DURING COVERAGE OF THE EVENT ON CABLE NEWS NETWORK LAST MONDAY HE SAID HE TRIED UNSUCCESSFULLY TO IDENTIFY THE WRITING INSTRUMENT OF PALESTINE LIBERATION ORGANIZATION CHAIRMAN YASSER ARAFAT THE COMPANY HASN'T REQUESTED MR RABIN'S PERMISSION TO USE HIM IN AN AD MR SHAW SAID WE FELT IT WAS PRETTY MUCH IN THE PUBLIC DOMAIN 9309170014 930917 HEALTH PLAN WILL LIMIT AID FOR SMALL FIRMS SUBSIDIES TO BE PHASED OUT AFTER EIGHT TO 10 YEARS CLINTON OFFICIALS SAY BY HILARY STOUT AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SUBSIDIES THAT PRESIDENT CLINTON'S HEALTH PLAN PROMISES SMALL BUSINESSES WOULD BE PHASED OUT AFTER EIGHT TO 10 YEARS ACCORDING TO ADMINISTRATION OFFICIALS IN AN INTERVIEW WITH WALL STREET JOURNAL REPORTERS AND EDITORS THE OFFICIALS SAID THEY WANT TO DISCOURAGE CORPORATIONS FROM SPINNING OFF SMALL COMPANIES INTO LOWWAGE FIRMS IN ORDER TO QUALIFY FOR GOVERNMENT FINANCIAL ASSISTANCE IN BUYING HEALTH INSURANCE THEREFORE THE PROPOSED SUBSIDIES WHICH INITIALLY WOULD LIMIT HEALTH EXPENDITURES FOR THE SMALLEST AND POOREST COMPANIES TO AS LITTLE AS 35 OF PAYROLL WOULD BE ELIMINATED OVER TIME SAID IRA MAGAZINER THE WHITE HOUSE ADVISER WHO HAS BEEN OVERSEEING THE DEVELOPMENT OF THE HEALTH PLAN ACCORDING TO A DRAFT OF THE CLINTON HEALTH PLAN WHICH IS UNDERGOING A NUMBER OF REVISIONS COMPANIES WOULD BE REQUIRED TO PAY ON BEHALF OF EACH WORKER AT LEAST 80 OF THE AVERAGE HEALTH PREMIUM IN THEIR REGION UP TO A MAXIMUM OF 79 OF THEIR TOTAL PAYROLL BUT AS A CARROT TO SMALL BUSINESSES MANY OF WHICH HAVE BEEN COMPLAINING THAT SUCH A REQUIREMENT WOULD HURT THEM SEVERELY FIRMS WITH 50 OR FEWER WORKERS AND AVERAGE ANNUAL WAGES OF UNDER 24000 WOULD HAVE THEIR CONTRIBUTIONS INITIALLY CAPPED AT BETWEEN 35 AND 65 OF PAYROLL THE OFFICIALS ALSO SAID LARGE CORPORATIONS THAT DECIDE NOT TO JOIN A REGIONAL HEALTH ALLIANCE TO PURCHASE HEALTH COVERAGE MAY BE ASSESSED A SURCHARGE OF AS MUCH AS 1 OF PAYROLL TO HELP PAY FOR MEDICAL EDUCATION AND SUBSIDIES FOR THE UNEMPLOYED THE EXACT AMOUNT OFFICIALS SAID WILL DEPEND ON THE LEVEL OF SIN TAXES AGREED TO IN THE PLAN SO FAR OFFICIALS ARE CONSIDERING PROPOSING AN INCREASE IN THE TAX ON CIGARETTES OF AS MUCH AS ONE DOLLAR THEY HAVE YET TO DECIDE WHETHER TO PROPOSE RAISING TAXES ON SOME ALCOHOLIC BEVERAGES TOO EMPLOYERS IN THE HEALTH ALLIANCES ALSO WOULD PAY A SIMILAR ASSESSMENT BUT IT WOULD BE BUILT INTO THE PREMIUMS THEY PAY TO THE REGIONAL BODIES DESPITE THE NEW COSTS ON SOME BUSINESSES THE ADMINISTRATION OFFICIALS PREDICT THAT BY THE THIRD YEAR AFTER THE PLAN'S ENACTMENT BOTH BUSINESSES AND HOUSEHOLDS OVERALL WOULD BE SPENDING LESS ON HEALTH CARE THAN IS NOW PROJECTED BY 1998 EVERYONE IS PAYING LESS SAID MR MAGAZINER THAT'S BECAUSE OF PROPOSED COSTCONTAINMENT MEASURES SUCH AS PREMIUM CAPS AND INSURANCEMARKET REFORMS SUCH AS A PROHIBITION ON INSURERS CHARGING A HIGHER FEE TO PEOPLE WITH MEDICAL CONDITIONS THE OFFICIALS SAID THEY ADDED THAT THE ADMINISTRATION CHANGED THE PROPOSED SMALLBUSINESS SUBSIDIES IN RESPONSE TO CONCERNS OF MEMBERS OF CONGRESS THE ADMINISTRATION HAS BEEN MAKING SCORES OF CHANGES TO THE 239PAGE DRAFT WHICH HAS BEEN CIRCULATING WIDELY IN WASHINGTON SINCE LATE LAST WEEK THE PRESIDENT IS DUE TO UNVEIL IT OFFICIALLY IN A SPEECH TO CONGRESS NEXT WEDNESDAY NIGHT ANOTHER CHANGE IS THE ADDITION OF A PROPOSED RESERVE FUND TO HELP PROVIDE FINANCIAL ASSISTANCE IN CASE A DOWNTURN IN THE ECONOMY SWELLS THE NUMBER OF PEOPLE QUALIFYING FOR SUBSIDIES TO LOWINCOME AND UNEMPLOYED INDIVIDUALS IN THE INTERVIEW ADMINISTRATION OFFICIALS DEFENDED THEIR ASSERTION THEY COULD PAY FOR THE BULK OF THE CLINTON HEALTH PLAN BY CAPPING SPENDING ON MEDICARE AND MEDICAID THE PUBLIC HEALTH INSURANCE PROGRAMS FOR THE ELDERLY DISABLED AND POOR THERE SEEMS TO BE A WASHINGTON DISEASE THAT DOESN'T BELIEVE YOU CAN HAVE SAVINGS ESPECIALLY IN HEALTH CARE MR MAGAZINER SAID STILL PRESIDENT CLINTON ACKNOWLEDGED YESTERDAY THAT SOME SMALL BUSINESSES AND INDIVIDUALS WOULD PAY MORE FOR HEALTH CARE UNDER HIS PLAN AT A MORNING MEETING IN THE ROSE GARDEN WITH PEOPLE WHO HAD WRITTEN THE WHITE HOUSE ABOUT THEIR PROBLEMS PAYING FOR HEALTH CARE HE SAID THAT SOME YOUNG HEALTHY PEOPLE MAY END UP PAYING A BIT MORE TO GUARANTEE THAT EVERYONE ELSE IN A REGIONAL OR STATERUN INSURANCE POOL COULD BE COVERED AND MEETING LATER WITH 20 SMALL BUSINESS OWNERS AT A HARDWARE STORE HE CONCEDED THAT SOME JOBS COULD BE LOST AND SOME COMPANIES COULD BE HURT BY THE PLAN BUT HE INSISTED THAT OVERALL COSTS WOULD BE LOWER AND FEWER JOBS WOULD BE LOST UNDER HIS PLAN THAN IF THE CURRENT SYSTEM IS MAINTAINED TO USE AN OLD PHRASE WE DON'T WANT TO MAKE PERFECT THE ENEMY OF GOOD MR CLINTON SAID THE PRESIDENT INDICATED HE MAY GIVE FURTHER CONSIDERATION TO THE PROBLEMS OF SMALL COMPANIES WITH MORE THAN 50 EMPLOYEES AT THE SAME TIME ERSKINE BOWLES HEAD OF THE SMALL BUSINESS ADMINISTRATION SAID THE AGENCY WILL SET UP A TOLLFREE NUMBER FOR SMALL COMPANIES TO CALL THE AGENCY FOR HELP COMPARING THE ADMINISTRATION'S PROPOSAL WITH WHAT THEY CURRENTLY OFFER HE INSISTED THAT UNDER THE PLAN MOST SMALL COMPANIES WOULD HAVE EITHER LOWER COSTS OR BETTER COVERAGE FOR THEIR EMPLOYEES MESSRS CLINTON AND BOWLES BOTH REFERRED TO A RECENT STUDY BY NATIONAL SMALL BUSINESS UNITED THE SECONDLARGEST SMALL BUSINESS ORGANIZATION WHICH THEY SAID SHOWS THAT MANY COMPANIES WOULD PAY LESS THAN 1 OR 2 A DAY FOR HEALTH COVERAGE UNDER THE NEW ADMINISTRATION PROPOSAL BUT LATER IN THE DAY JOHN GALLES NSBU VICE PRESIDENT DISAGREED WITH THEIR ANALYSIS OF THE GROUP'S DATA WE THINK THE PRESIDENT'S PLAN IS ENTIRELY TOO COMPLICATED TO REACH THAT CONCLUSION HE SAID IT WOULD BE A SIMPLISTIC USE OF NUMBERS 9309170013 930917 THE AMERICAS WILL PEMEX FOLLOW YPF TO THE AUCTION BLOCK BY GEORGE W GRAYSON MEXICO CITY PRESIDENT CARLOS SAUL MENEM SEEKS TO BURNISH HIS AND HIS PERONIST PARTY'S IMAGE BY PRIVATIZING YACIMIENTOS PETROLIFEROS FISCALES YPF ARGENTINA'S STATE OIL FIRM BEFORE THE JULY 2 PARTIAL SELLOFF YPF PRESIDENT JOSE ESTENSORRO HAD SLASHED THE NUMBER OF WORKERS TO 10600 FROM 51000 OPENED ATTRACTIVE FIELDS TO PRIVATE OPERATORS AND STAUNCHED THE SEEMINGLY INTERMINABLE FLOW OF RED INK TO POST A 259 MILLION PROFIT IN 1992 INVESTORS RUSHED IN TO BUY 160 MILLION SHARES OF THE SLIMMER MARKETORIENTED ARGENTINE COMPANY GENERATING 304 BILLION MEXICO'S PRESIDENT CARLOS SALINAS DE GORTARI ALSO HAS EXPERIENCE RESTRUCTURING STATE ASSETS IN PREPARATION FOR THEIR PRIVATIZATION THE MEXICAN CHIEF EXECUTIVE HAS RETURNED THE BANKING SYSTEM TO PRIVATE HANDS AND SOLD OFF HUNDREDS OF OTHER STATE FIRMS IN MOST OF THESE CASES THE NEED TO INCREASE EFFICIENCY BEFORE THE ASSETS WERE PRIVATIZED WAS EMPHASIZED THIS HAS LED SOME TO SPECULATE THAT THE CURRENT ECONOMIC RESTRUCTURING OF THE OIL MONOPOLY PETROLEOS MEXICANOS PEMEX MAY BE A PRELIMINARY STEP TOWARD PRIVATIZATION HOWEVER PEMEX WHICH GENERATES 302 OF THE COUNTRY'S FOREIGN EXCHANGE AND 24 OF THE FEDERAL BUDGET HAS PROVED A TOUGH NUT TO CRACK MEXICO'S ACUTELY NATIONALISTIC CONSTITUTION MANDATES STATE OWNERSHIP AND EXPLOITATION OF HYDROCARBONS TO PRIVATIZE PEMEX PRESIDENT SALINAS WOULD HAVE TO AMEND THIS FUNDAMENTAL LAW SUCH AN INITIATIVE WOULD SPARK A FIRESTORM OF PROTEST FROM NATIONALISTS WHO ARE ALREADY OUTRAGED BY THE MEXICOBASHING ENGAGED IN BY ROSS PEROT REP DAVID BONIOR LANE KIRKLAND AND OTHER FOES OF THE NORTH AMERICAN FREE TRADE AGREEMENT NAFTA PRESIDENT SALINAS THEREFORE INSISTS THAT OWNERSHIP AND CONTROL OF OIL REMAIN UNALTERABLY IN MEXICAN HANDS NEEDLESS TO SAY HE REALIZES THAT WITH OR WITHOUT NAFTA MEXICO CANNOT VAULT INTO THE DEVELOPED WORLD AS LONG AS PEMEX REMAINS A SYNONYM FOR INEFFICIENCY WASTE FEATHERBEDDING AND POLLUTION AFTER AN APRIL 1992 GASOLINE BLAST KILLED MORE THAN 200 PEOPLE IN GUADALAJARA THE 45YEAROLD CHIEF EXECUTIVE ACCELERATED THE RESTRUCTURING OF THE MONOPOLY THE REVAMPING PRESIDED OVER BY PEMEX DIRECTORGENERAL FRANCISCO ROJAS AND OPERATIONS DIRECTOR ADRIAN LAJOUS RESULTED IN THE CREATION OF FOUR SUBSIDIARIES PEMEXEXPLORATION AND PRODUCTION E&P PEMEXREFINING PEMEXGAS AND BASIC PETROCHEMICALS AND PEMEXPETROCHEMICALS EACH UNIT IS EXPECTED TO BECOME A PROFIT CENTER AS SUCH IT MUST TAKE CHARGE OF ITS OWN BUDGET PLANNING PERSONNEL AND OTHER FUNCTIONS NEAR ARMSLENGTH CONTRACTS AND MARKETBASED BUT STILL MANAGED TRANSFER PRICES GOVERN INTERSUBSIDIARY TRANSACTIONS FOR THE FIRST TIME A PEMEX OFFICIAL CONFIDED WE WILL LEARN JUST HOW MUCH IT COSTS TO REFINE A BARREL OF OIL AT ANY OF OUR HALFDOZEN REFINERIES EVENTUALLY REPRESENTATIVES OF MEXICO'S PRIVATE AUTO GLASS TRANSPORT AND CHEMICAL INDUSTRIES SHOULD BE ADDED TO THE SUBSIDIARIES' GOVERNING BOARDS TO PROVIDE A BUSINESS PERSPECTIVE ON PEMEX OPERATIONS THE CURRENT ALLPUBLIC SECTOR COMPOSITION OF THESE BOARDS PROMPTED ONE PUCKISH OBSERVER TO EXCLAIM PEMEX'S NEW ORGANIZATION SUFFERS FROM GREATER INCEST THAN THE INCA ROYAL FAMILY ALTHOUGH THE JURY IS STILL OUT ON THE NEW PEMEX SEVERAL IMPROVEMENTS ARE IMPRESSIVE ESPECIALLY THOSE ACCOMPLISHED BY PEMEXE&P INDUSTRYWATCHERS ANTICIPATED THAT THIS SUBSIDIARY WHICH ABSORBS 58 OF PEMEX'S 3 BILLION INVESTMENT BUDGET WOULD RESIST CHANGE BECAUSE OF ITS SIZE NATIONALISTIC SENSIBILITIES TRADITION OF STRESSING VOLUME PRODUCED OVER PROFITS AND HOSTILITY TOWARD THE ECONOMISTS ACCOUNTANTS AND OTHER TECHNOCRATS WHO ARE SO UBIQUITOUS IN THE EXECUTIVE SUITE BUT MANUEL J ORTIZ DE MARIA THE 62YEAROLD PETROLEUM ENGINEER WHO DIRECTS E&P ACTIVITIES HAS PLUNGED INTO THE WHIRLPOOL OF REFORM WITHOUT LOSING HIS BEARINGS PEMEX'S MARKETING BOSS AN ASTUTE 41YEAROLD CIGARPUFFING ECONOMIST NAMED PEDRO HAAS NOW PERFORMS A COSTBENEFIT ANALYSIS ON EVERY TRANSACTION IN WHICH IT IS INVOLVED BY STRESSING PROFITABILITY THIS INITIATIVE HAS SAVED PEMEX MONEY IN 1990 50 MILLION 1991 70 MILLION AND 1992 100 MILLION AND OF COURSE MESSRS SALINAS AND ROJAS BROKE THE BACK OF THE MAFIALIKE OIL WORKERS' UNION WITH THE JANUARY 1989 MILITARY ACTION THAT OUSTED ITS EGREGIOUSLY CORRUPT LEADER SINCE THE PUTSCH PEMEX HAS SLASHED ITS LABOR FORCE TO 116000 WORKERS FROM 210000 WITH MORE PINK SLIPS EXPECTED THIS YEAR A NEW COLLECTIVE CONTRACT PERMITS THE STATE CORPORATION TO SEEK THE LOWEST BIDDER FOR MAINTENANCE TRANSPORT SLOP OIL DISPOSAL AND OTHER WORK FORMERLY GUARANTEED TO VENAL GRAFTRIDDEN LABOR CHIEFS MORE MARKETDRIVEN ADVANCES MAY OCCUR ON AUG 4 THE BUSINESS DAILY EL FINANCIERO PUBLISHED A LEAKED REPORT OF PRESIDENT SALINAS'S PLANS TO PERMIT PRIVATE COMPANIES TO CONSTRUCT AND OPERATE NATURAL GAS AND REFINED PRODUCT PIPELINES THE DOCUMENTS DISMISSED AS APOCRYPHAL BY PEMEX PROPOSED CONVERTING THE MONOPOLY'S EXCLUSIVE PIPELINE NETWORK INTO A COMMON CARRIER FOR THIRD PARTIES IT ALSO RECOMMENDED LIBERALIZING IMPORTS OF GASOLINE AND INDUSTRIAL FUELS SUCH HOPEFUL DEVELOPMENTS ASIDE THE NATIONALISTIC SHACKLES FROM WHICH PRESIDENT MENEM HAS BROKEN FREE STILL IMPEDE THE INTRODUCTION OF SWEEPING RATHER THAN INCREMENTAL REFORMS AT PETROLEOS MEXICANOS WHILE PEMEX IS MORE EFFICIENT THAN IT WAS BEFORE SALINAS'S INAUGURATION NEARLY FIVE YEARS AGO THE GRANDDADDY OF ALL RESTRUCTURINGS AN ARGENTINESTYLE PRIVATIZATION REMAINS UNLIKELY AT LEAST DURING THIS PRESIDENCY MR GRAYSON TEACHES GOVERNMENT AT THE COLLEGE OF WILLIAM & MARY 9309170012 930917 ECONOMY BANKS RETURN TO COMMERCIAL PROPERTY LOANS LENDERS REMAIN CAUTIOUS BUT STEP UP FINANCING FOR SOME DEVELOPERS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SHUNNING COMMERCIAL REALESTATE DEVELOPERS FOR THE PAST FEW YEARS BANKS ARE SLOWLY OPENING THE LENDING SPIGOT AGAIN SUCH MAJOR INSTITUTIONS AS BANK OF BOSTON CORP FLEET FINANCIAL GROUP INC AND NATIONSBANK CORP WHICH SUFFERED HEAVY LOSSES IN REAL ESTATE IN RECENT YEARS ARE STEPPING UP THEIR COMMERCIALPROPERTY LENDING THIS YEAR AND OTHER BANKS SUCH AS FIRST UNION CORP BANC ONE CORP AND GUARANTY FEDERAL BANK ARE ALSO SEEKING NEW REALESTATE BUSINESS ALTHOUGH THERE IS STILL LITTLE DEMAND FOR NEW CONSTRUCTION MANY BUILDERS NEED TO FINANCE EXISTING PROJECTS AND BANKS ARE BECOMING MORE WILLING TO CONSIDER SUCH FINANCING AS LONG AS THE BORROWER IS CREDITWORTHY BANKS ARE STARTING TO SAY THERE'S NOBODY MAKING LOANS OUT THERE LET'S TAKE ADVANTAGE OF THE GAP IN THE MARKET PLACE' EXPLAINS HOUSTON MORTGAGE BROKER BOB DOCKERTY IT'S VERY SMART THE NEW LENDING IS EVIDENCE THAT EVEN BANKS BATTERED BY HUGE REALESTATE LOSSES DURING THE LATE 1980S DON'T INTEND TO ABANDON THE MARKET FOR GOOD THE TREND IS ALSO EVIDENT IN THE HOMEBUILDING INDUSTRY WHERE SOME BUILDERS ARE ALSO STARTING TO BE COURTED BY BANKS STILL BECAUSE OF BANKS' CONSERVATIVE NEW UNDERWRITING REQUIREMENTS NO ONE IS EXPECTING A SHARP INCREASE IN CONSTRUCTION LOANS TODAY'S LENDERS INSIST THEY HAVE LEARNED FROM THE SINS OF THE 1980S WHEN THE INDUSTRY'S FRENZY TO BOOK LOANS COUPLED WITH SLOPPY UNDERWRITING LED TO BILLIONS OF DOLLARS OF LOSSES WE'RE LENDING WHERE THERE IS A VERY REAL MEASURABLE DEMAND FOR SPACE SAYS MICHAEL BUCHANAN EXECUTIVE VICE PRESIDENT IN CHARGE OF REAL ESTATE AT CHARLOTTE NCBASED NATIONSBANK WHICH BEGAN PUSHING LAST YEAR TO MAKE MORE COMMERCIAL REALESTATE LOANS AFTER TAKING 372 MILLION IN 1992 REALESTATE WRITEDOWNS WE WANT A LOT OF CASH UP FRONT WHICH WAS A LOT DIFFERENT THAN WHAT YOU SAW FIVE YEARS AGO ANY DEVELOPER WHO COMES IN WITHOUT EQUITY DOESN'T EVEN GET A SECOND HEARING CONSEQUENTLY THE HUNDREDS OF OWNERS WHOSE PROPERTIES HAVE SHRUNK IN VALUE TO LESS THAN THEIR LOAN BALANCES WILL STILL FACE A CREDIT CRUNCH WHEN THEIR LOANS COME DUE AND DEVELOPERS HOPING TO OBTAIN CONSTRUCTION LOANS WITH LITTLE MORE THAN A BUSINESS PLAN WILL NOT GET FAR BUT STRONG DEVELOPERS ARE FINDING A GROWING NUMBER OF REGIONAL BANKS WILLING TO REFINANCE BUILDINGS WITH STABLE EXISTING CASH FLOWS AS LONG AS THE DEVELOPERS ARE WILLING TO PUT THEIR OWN MONEY AT RISK SOME LENDERS ARE ALSO MAKING CONSTRUCTION LOANS ON THE PROJECTS WITH STRONG PRELEASING CURRENTLY APARTMENT AND RETAIL PROPERTIES IN MANY PARTS OF THE COUNTRY MEET THOSE CRITERIA WITH A LACK OF LOAN DEMAND BY CORPORATIONS AND THE YIELDS ON BONDS FALLING BANKS ARE BEING LURED BACK INTO REAL ESTATE BY ATTRACTIVE PRICING FOR FIXEDRATE LOANS OF THREE TO SEVEN YEARS COMMONLY OFFERED TO REFINANCE EXISTING PROJECTS BANKS ARE CHARGING INTEREST OF UP TO THREE PERCENTAGE POINTS MORE THAN COMPARABLETERM TREASURY NOTES REAL ESTATE HAS SOMETHING TODAY THAT EVERYONE IS LOOKING FOR YIELD POP EXPLAINS JOHN LEVY EXECUTIVE VICE PRESIDENT OF REPUBLIC REALTY MORTGAGE CORP A RICHMOND VABASED COMMERCIAL MORTGAGE BANK THERE'S A LACK OF YIELD IN OTHER PARTS OF THE LENDING MARKET THERE ARE NO AVAILABLE DATA THAT REVEAL WHETHER THE BANKING INDUSTRY AS A WHOLE HAS BEGUN ORIGINATING MORE REALESTATE LOANS THIS YEAR THE TOTAL VOLUME OF REALESTATE LOANS HELD BY COMMERCIAL BANKS CONTINUES TO DROP AS IT HAS SINCE 1990 ACCORDING TO FEDERAL DATA AS LOANS COMING DUE ARE PAID OFF RESTRUCTURED OR FORECLOSED ON DESPITE TAKING 584 MILLION IN CHARGEOFFS ON COMMERCIAL REAL ESTATE BETWEEN 1990 AND 1992 PROVIDENCE RIBASED FLEET FINANCIAL THIS YEAR BEGAN CONTACTING CERTAIN SELECT DEVELOPERS AROUND THE COUNTRY THAT WE THINK ARE SURVIVORS TO OFFER LOANS ACCORDING TO VICE PRESIDENT RICHARD HIGGINBOTHAM FLEET INTENDS TO MAKE 13 BILLION IN NEW REALESTATE LOANS THIS YEAR WHICH MR HIGGINBOTHAM SAYS IS MANY MULTIPLES OF LEVELS THE PRIOR THREE YEARS THE BANK IS OFFERING FLOATINGRATE CONSTRUCTION FINANCING THE LOAN TYPE THAT PRODUCED THE BIGGEST INDUSTRY LOSSES FIXEDRATE THREE TO SEVENYEAR BULLET LOANS ON COMPLETED PROJECTS HISTORICALLY THE PROVINCE OF INSURANCE COMPANIES AND REVOLVING LOANS TO BUYERS OF PORTFOLIOS OF DISTRESSED PROPERTIES AN ENTIRELY NEW LENDING AREA BANK OF BOSTON WHICH HAS TAKEN 12 BILLION IN REALESTATE CHARGEOFFS SINCE 1988 PLANS TO MAKE 450 MILLION OF REALESTATE LOANS THIS YEAR MORE THAN DOUBLE THE LEVEL OF TWO YEARS AGO THE BANK ISN'T TAKING THE LEVEL OF DEVELOPMENT RISK IT DID IN THE '80S SAYS GUILLAEM AERTSEN HEAD OF THE BANK'S REALESTATE DEPARTMENT IF WE WOULD LEND 1 IN THE OLD DAYS WE WOULD LEND 60 CENTS TODAY WE'RE LOOKING FOR OWNERS AND OPERATORS OF REAL ESTATE THAT HAVE SURVIVED THE LATE '80S AND HAVE THE CAPITAL LIQUIDITY AND COMPETENCE TO OWN AND OPERATE THAT TYPE OF PROPERTY THERE ARE A LOT OF DEVELOPERS THAT COULDN'T ATTRACT CAPITAL AT ANY PRICE EARLIER THIS YEAR FEDERAL REGULATORS ESTABLISHED NONBINDING REALESTATE LENDING GUIDELINES INCLUDING MAXIMUM LOANTOVALUE RATIOS MANY LENDERS ARE BEING EVEN MORE CONSERVATIVE THAN THE GUIDELINES FIVE YEARS AGO BANKS OFTEN LOANED 100 OF CONSTRUCTION COSTS TODAY THEY'RE LENDING AS LITTLE AS 60 AND NO MORE THAN 85 ON FINISHED BUILDINGS BANKS ARE OFFERING TO LEND NO MORE THAN 75 OF VALUE DETERMINED BY A BUILDING'S CASH FLOW AND OFTEN LESS THEY USED TO LEND UPWARD OF 80 IT'S REAL SIMPLE MATH SAYS MR BUCHANAN THE POSSIBILITY OF LOSS IS REDUCED DIRECTLY BY THE AMOUNT OF EQUITY INJECTED BY THE BORROWER INTO THE PROJECT STEVEN LIPIN CONTRIBUTED TO THIS ARTICLE 9309170011 930917 MARKETING FOCUS ON JAPAN BY YUMIKO ONO SALES OF OFFROAD TRUCKS STATION WAGONS AND MINIVANS ARE ZIPPING ALONG IN JAPAN WHILE THE REST OF THE CAR MARKET SPUTTERS JAPAN'S TOTAL CAR AND TRUCK SALES SKIDDED 71 IN THE FIRST EIGHT MONTHS OF THIS YEAR TO 44 MILLION VEHICLES ACCORDING TO THE JAPANESE AUTOMOBILE MANUFACTURERS ASSOCIATION MEANWHILE SOME CAR MAKERS HAVE SEEN SALES OF SOCALLED RECREATIONAL VEHICLES KNOWN AS RVS IN JAPAN ACCELERATE BY AS MUCH AS 8 OVER LAST YEAR'S LEVELS RVS NOW ACCOUNT FOR 20 OF JAPAN'S OVERALL CAR MARKET UP FROM 14 IN 1990 THE RV BOOM OPENS A NEW AVENUE OF OPPORTUNITY FOR US AUTO MAKERS SALES OF CHRYSLER'S JEEP CHEROKEE MODEL NEARLY TRIPLED TO 1766 UNITS IN THE FIRST SEVEN MONTHS OF THIS YEAR AFTER THE COMPANY CUT PRICES 30 TO 37 MILLION YEN 34900 AND OFFERED RIGHTSIDE STEERING TO MATCH THE JAPANESE STANDARD FORD MOTOR SAYS IT EXPECTS TO NEARLY DOUBLE ITS SALES IN JAPAN THIS YEAR FROM LAST YEAR'S 3400 UNITS MAINLY BECAUSE DEMAND IS SOARING FOR ITS 328 MILLION YEN TAURUS STATION WAGONS MANY RV OWNERS RARELY VENTURE OUTSIDE OF JAPAN'S CITIES IT IS SIMPLY THE OUTDOORSY STYLE THAT PEOPLE LIKE SAYS SHINICHI KURIHARA A PRODUCT PLANNING MANAGER FOR MITSUBISHI MOTORS EVEN THOUGH RVS CAN COST TWICE AS MUCH AS SENSIBLE SEDANS CAR MAKERS ARE PUSHING VEHICLES THAT HAVE A SPORTY LOOK BUT ARE SUITABLE FOR CROWDED CITY ROADS AS WELL TOYOTA MOTOR'S EGGSHAPED PREVIA MINIVAN IS POPULAR WITH FAMILIES BECAUSE CHILDREN HAVE PLENTY OF ROOM TO HORSE AROUND DURING LENGTHY TRAFFIC JAMS MITSUBISHI MEANWHILE WINS OVER URBANITES FOND OF THE RUGGED LOOK WITH ITS SMALL EXPOLRV STATION WAGON THE CAR HAS A WINCH BAR ON THE FRONT END AND A SPARE TIRE ON THE BACK ONE VERSION COMES WITH A CONVERTIBLE ROOF SINCE ITS BURGER SALES HAVE STOPPED SIZZLING THE JAPANESE UNIT OF MCDONALD'S IS COOKING UP SOME NEW VENTURES A VIDEO GAME AND CLOTHES TOGETHER WITH VIDEOGAME MAKER SEGA ENTERPRISES MCDONALD'S PLANS TO LAUNCH IN JAPAN NEXT THURSDAY A COMPUTER GAME CALLED MCDONALD'S TREASURE ADVENTURE IN THE GAME RONALD MCDONALD THE BURGER CHAIN'S MASCOT CLOWN WANDERS ABOUT WITH A TATTERED MAP SEARCHING FOR TREASURE SEGA HOPES THE 6800YEN 64 TITLE TO BE RELEASED LATER THIS YEAR IN THE US AND EUROPE WILL SELL 500000 COPIES WORLDWIDE IN THE FIRST YEAR WE'RE TRYING TO SECURE A BASE OF NEW FANS A MCDONALD'S SPOKESMAN SAYS MCDONALD'S ISN'T PUTTING ALL OF ITS EGG MCMUFFINS IN ONE BASKET EITHER IT OPENED ITS FIRST NOVELTIES SHOP IN TOKYO LAST MONTH WHERE IT SELLS SWIMMING SUITS COTTON KIMONOS AND ABOUT 100 ITEMS EMBLAZONED WITH THE COMPANY'S GOLDENARCHES LOGO THE CHAIN'S EFFORTS COME AT A TIME WHEN HAMBURGER JOINTS FACE FIERCE COMPETITION WITH NEW JAPANESE FASTFOOD OUTLETS THAT SERVE DISHES SUCH AS COOKED BEEF AND FRIED SHRIMP ON TOP OF A BOWL OF RICE MORE FILLING THAN A BURGER AND FRIES YET ABOUT THE SAME PRICE LAST YEAR MCDONALD'S TRIED TO FIGHT BACK WITH CHINESESTYLE BOXED LUNCHES BUT THE EFFORT FLOPPED THE JAPAN UNIT'S SALES ROSE A MEAGER 23 LAST YEAR SAYS A COMPANY SPOKESMAN AFTER SOARING 18 IN 1991 MCDONALD'S DECLINES TO RELEASE ACTUAL SALES FIGURES THE COMPANY WILL KEEP SERVING UP RICEBUSTERS THOUGH COMING IN THE AUTUMN WHEN MOON VIEWING IS POPULAR IN JAPAN THE MOONVIEWING BURGER A 280YEN HAMBURGER TOPPED WITH A FRIED EGG SUNNYSIDE UP TO RESEMBLE THE FULL MOON WAR IS BEING WAGED BY A DISCOUNT RETAILER AGAINST JAPAN'S MOST POWERFUL COSMETICS MAKER IN AN EFFORT THAT COULD PUT A BIG DENT IN JAPAN'S RESTRICTIVE RETAILDISTRIBUTION SYSTEM THE SAME SYSTEM THAT BOGS DOWN AMERICAN COMPANIES HERE KAWACHIYA SHUHAN KK A 10STORE TOKYO LIQUOR AND DRUG CHAIN IN JUNE STARTED SELLING JAPANESE COSMETICS AT PRICES AS MUCH AS 30 CHEAPER THAN TYPICAL STORES CHARGE IT WAS AN UNPRECEDENTED MOVE IN JAPAN'S COSMETICS INDUSTRY WHERE MANUFACTURERS ARE NOTORIOUS FOR ARMTWISTING RETAILERS INTO KEEPING THEIR PRICES UNIFORMLY HIGH KAWACHIYA CHAIRMAN YUKIO HIGUCHI ALLEGES THAT EXECUTIVES OF SHISEIDO THE HUGE MAKEUP COMPANY PROMPTLY TRIED TO STOP THE DISCOUNTING BY OFFERING HIM CASH PAYOFFS AND THEN CUTTING OFF HIS SUPPLIES MR HIGUCHI TOOK HIS FEUD WITH SHISEIDO TO THE PRESS AND FILED AN ANTITRUST COMPLAINT WITH JAPAN'S FAIR TRADE COMMISSION THE COMMISSION IS NOW INVESTIGATING THE ALLEGATIONS SHISEIDO DENIES OFFERING MR HIGUCHI MONEY AND MAINTAINS THE DISCOUNTER BROKE RULES IN ITS SALES CONTRACT COSMETICS MAKERS IN JAPAN KEEP RETAILERS IN LINE WITH A REBATE SYSTEM AFTER A MERCHANT RETAILS SOME COSMETICS IT RECEIVES BACK A PORTION OF WHAT IT PAID FOR THE GOODS RETAILERS ARE THUS EAGER TO PLEASE MANUFACTURERS AND STICKING TO SUGGESTED PRICES IS PART OF THE CUSTOM BUT IF MORE DISCOUNTERS JUMP INTO THE FRAY AS SEEMS LIKELY THE SYSTEM COULD COLLAPSE SAYS VICTORIA MELENDEZ AN ANALYST FOR JARDINE FLEMING SECURITIES LTD THE WRITING IS ON THE WALL SHE SAYS YOU'VE GOT TO DO BUSINESS WITH THESE DISCOUNTERS PHILIP MORRIS THIS MONTH INTRODUCED A LOWTAR CIGARETTE TAILORED SPECIFICALLY FOR JAPAN THE COMPANY SAYS IT HOPES THE 250YEN 236 BRAND CALLED NEXT WILL BOOST ITS 12 SHARE IN THE JAPANESE MARKET DENTSU JAPAN'S BIGGEST AD AGENCY SAYS IT EXPECTS AD BILLINGS IN JAPAN TO DECLINE 5 IN THE FISCAL YEAR ENDING MARCH 31 THE SECOND ANNUAL DROP IN A ROW 9309170010 930917 BUSINESS BRIEF HYOGO BANK JAPANESE BANK PLANS CUTS WILL CLOSE NEW YORK BRANCH HYOGO BANK A JAPANESE BANK UNDERGOING FINANCIAL RECONSTRUCTION WILL CLOSE ITS NEW YORK BRANCH AND REORGANIZE ITS DOMESTIC OUTLETS THE KYODO NEWS SERVICE REPORTED HYOGO A SECONDTIER REGIONAL BANK BASED IN KOBE SAID THE NEW YORK BRANCH WILL BE SHUT DOWN AT THE END OF SEPTEMBER UNDER A PLAN FORMULATED LAST OCTOBER THE BANK SAID EIGHT DOMESTIC BRANCHES WILL BE REALIGNED BY THE END OF OCTOBER THE RESTRUCTURING PLAN CALLS FOR THE BANK TO CLOSE OR REALIGN 20 OF ITS 165 OUTLETS INCLUDING THE SHUTDOWN OF A REPRESENTATIVE OFFICE IN LONDON AND TO SLASH ITS WORK FORCE 10 BY THE END OF MARCH 1996 THE BANK FACED FINANCIAL TROUBLE LAST YEAR AFTER CERTAIN AFFILIATES INCURRED HEAVY DEBTS WITH THE BURSTING OF JAPAN'S BUBBLE ECONOMY 9309170009 930917 BUNDESBANK'S OUTGOING CHIEF SEES STABILITY POLICIES HAVE NORMALIZED HE REPORTS FOLLOWING STRESS OF REUNIFICATION BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE PRESIDENT OF GERMANY'S CENTRAL BANK BELIEVES HIS COUNTRY'S MONETARY POLICIES HAVE NORMALIZED AFTER ENDURING TWO YEARS OF POSTUNIFICATION SHOCKS TO ITS MONEY SUPPLY BUNDESBANK CHIEF HELMUT SCHLESINGER WHO IS SET TO RETIRE AT THE END OF THE MONTH SAID AT A FAREWELL LUNCHEON THAT THE MOST RECENT EXPANSION IN GERMANY'S BROADLY DEFINED M3 MONEY SUPPLY WASN'T SIGNIFICANT ADDING THAT INFLATION SHOWS SIGNS OF SLOWING HE ALSO DEFENDED GERMANY'S CURRENT INTEREST RATES WHICH HAVE DROPPED THREE FULL PERCENTAGE POINTS FROM YEAREARLIER LEVELS GERMAN INTEREST RATES HAVE BEEN LOWER ONLY THREE TIMES IN THE PAST FOUR DECADES AND ONLY IN TIMES OF ANNUAL INFLATION OF LESS THAN 2 WE ARE COMING INTO A SITUATION WHERE ONE CAN SAY THAT THE MONETARY CONDITIONS IN OUR COUNTRY HAVE LARGELY NORMALIZED MR SCHLESINGER TOLD JOURNALISTS AT THE LUNCHEON WE ARE NOT YET AT A STAGE WHERE WE ARE SATISFIED BUT WE ARE ON THE RIGHT PATH WESTERN GERMAN ANNUAL INFLATION IN AUGUST WAS STILL RUNNING AT 42 BUT IN ITS MOST RECENT MONTHLY REPORT THE BUNDESBANK SAID CONSUMER PRICES ROSE AT A MERE 25 ANNUALIZED RATE IN THE JUNEAUGUST PERIOD IN ANOTHER SIGN OF TEMPERED PRICE INCREASES THE GOVERNMENT STATISTICS OFFICE REPORTED YESTERDAY THAT WESTERN GERMANY'S PRODUCER PRICES EASED 01 IN AUGUST FROM JULY AND WERE OFF 03 FROM AUGUST 1992 BOTH NUMBERS WERE BETTER THAN EXPECTED MR SCHLESINGER JUDGED THAT EUROPEAN CURRENCY MARKETS HAVE ENTERED A PERIOD OF RELATIVE CALM FOLLOWING JULY'S MARKET CONVULSIONS WHICH FORCED GOVERNMENTS TO ALLOW MORE FLUCTUATION AMONG CURRENCIES IN THE EUROPEAN MONETARY SYSTEM THAT MOVE HAS BEEN CONSIDERED A DE FACTO SUSPENSION OF THE SYSTEM A YEAR AGO POPULARIZED ACCOUNTS DEPICTED THE GERMAN CENTRALBANK CHIEF AS THE PERSONIFICATION OF THE TOUGH GERMAN MONETARY POLICIES THAT FIRST CRIPPLED THE EMS LAST SEPTEMBER THAT CRISIS FORCED ITALY AND THE UNITED KINGDOM TO PULL THEIR CURRENCIES OUT OF A SYSTEM STRAINED BY HIGH GERMAN INTEREST RATES BUT MR SCHLESINGER REFUTED ALLEGATIONS FROM ABROAD NOTABLY FROM FRANCE THAT GERMANY'S COSTLY REUNIFICATION AND ENSUING TIGHT MONETARY POLICIES HELPED PULL EUROPE INTO RECESSION IT WASN'T THE PROBLEM OF GERMAN UNITY BUT OF A FIXED EXCHANGERATE SYSTEM HE DECLARED ADDING THAT GERMANY WOULDN'T ACCEPT WHAT HE CALLED UNJUSTIFIED CRITICISM OF GERMAN MONETARY OR FISCAL POLICIES HE ACCEPTED HOWEVER THAT THERE WON'T BE ANY OVATIONS FOR GERMAN OFFICIALS WHEN THEY ARRIVE NEXT WEEK IN WASHINGTON FOR A MEETING OF FINANCE MINISTERS AND CENTRALBANK GOVERNORS OF THE GROUP OF SEVEN LEADING INDUSTRIAL ECONOMIES BUT THAT COMES WITH THE TRADE HE SAID MR SCHLESINGER DECLARED THAT THE 05 RISE IN WESTERN GERMANY'S GROSS DOMESTIC PRODUCT IN THE SECOND QUARTER FROM THE YEAREARLIER PERIOD SHOWS THE RECESSION HAS BOTTOMED HE CAUTIONED AGAINST EXPECTING A RAPID UPSWING SAYING MUCH OF THE SECONDQUARTER BOUNCE CAN BE ASCRIBED TO A PARTICULARLY WEAK FIRST QUARTER BUT MR SCHLESINGER SAID HE DOESN'T BELIEVE THIRDQUARTER GDP WILL RETURN TO A NEGATIVE RESULT FOR THE FULL YEAR HE PROJECTED A 2 DECLINE IN WESTERN GERMAN GDP THE GDP FOR GERMANY AS A WHOLE COULD DECLINE BY SLIGHTLY LESS 15 DUE TO THE EFFECTS OF A PROJECTED 6 RISE IN EASTERN GERMANY'S ECONOMY AT THE SAME TIME HOWEVER THE BUNDESBANK SAID IN ITS SEPTEMBER MONTHLY REPORT THAT ATTAINING A SUSTAINABLE ECONOMIC RECOVERY MEANS A REVIVAL OF GERMAN MANUFACTURING WHICH IS STILL WEAKENED BY STRUCTURAL PROBLEMS AND A SHARP 12 DROP IN CAPITAL SPENDING IN THE SECOND QUARTER FOR MONETARY POLICY THE BUNDESBANK'S PRIMARY CONCERN REMAINS BONN'S EXPANSIONARY FISCAL POLICY WHICH IT FEARS COULD WEAKEN THE GERMAN MARK AND REKINDLE INFLATION UNLESS BROUGHT UNDER CONTROL IN ITS MONTHLY REPORT THE BUNDESBANK WARNED THAT GERMANY'S TOTAL PUBLICSECTOR BORROWING REQUIREMENT COULD REACH 230 BILLION MARKS 14416 BILLION THIS YEAR OR 75 OF TOTAL GDP AND URGENTLY NEEDS CORRECTING DESPITE GERMANY'S SLUGGISH ECONOMY IT SAID THAT FINANCE MINISTER THEO WAIGEL'S PLAN TO SAVE 20 BILLION MARKS IN FEDERAL SPENDING TO KEEP THE FEDERAL DEFICIT UNDER 70 BILLION MARKS CAN HARDLY BE CALLED DRASTIC CONSOLIDATION BECAUSE IT WOULD MERELY KEEP THE DEFICIT AT THIS YEAR'S LEVEL AT THE SAME TIME IT URGED STATE AND LOCAL GOVERNMENTS WHICH ACCOUNT FOR ABOUT TWOTHIRDS OF GERMANY'S TOTAL PUBLICSECTOR DEFICIT HAVE TO IMPROVE THEIR OWN SAVINGS PLANS LOOKING AHEAD THE BUNDESBANK WARNED OF THE RISING INTERESTRATE BURDEN FOR FUTURE GENERATIONS IF FISCAL POLICIES AREN'T REFORMED THIS YEAR PUBLICSECTOR DEBT SERVICING COULD ACCOUNT FOR 16 OF TOTAL SPENDING UP FROM 11 IN 1989 BY 1997 TWO YEARS AFTER THE GOVERNMENT ASSUMES RESPONSIBILITY FOR DEBT OF THE FORMER EAST GERMANY THE DEBTSERVICING SHARE IS PROJECTED TO SWELL TO 23 OF SPENDING 9309170008 930917 INTERNATIONAL ITALIAN REFORM BID MAY MEAN OVERHAUL OF NATIONAL MINDSET POPULATION WHICH BENEFITS FROM THE CORRUPT SYSTEM IS DISINCLINED TO CLEAN IT UP BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL SIENA ITALY IF ITALY IS SUCH A MESS WHY ARE SO MANY ITALIANS HAPPY JUST ASK GIORDANO GASPERONI INSPECTOR OF HISTORIC BUILDINGS HERE LIKE ALL ITALIAN CIVIL SERVANTS HE CLOCKS OFF WORK AT 2 PM THEN HE HEADS TO HIS NEWLY RENOVATED FARMHOUSE IN THE TUSCANY HILLS AND RIDES A HORSE NAMED CALIGULA MR GASPERONI WHO IS 38 GETS SIX WEEKS PAID VACATION A YEAR HE HAS VISITED EGYPT INDIA AND NEPAL AND HE NEED NEVER WORRY ABOUT LOSING HIS GOVERNMENT JOB NO ONE SHORT OF COMMITTING A CAPITAL CRIME GETS FIRED I LEAD THE LIFE I ALWAYS DREAMED OF GOOD RELATIONSHIPS WITH PEOPLE LOTS OF FRIENDS SAUSAGES THE COUNTRYSIDE SAYS MR GASPERONI QUITE SIMPLY MOST ITALIANS ENJOY A PRETTY GOOD LIFE TROUBLE IS THEY OWE IT IN NO SMALL PART TO THE SYSTEM NOW UNDER ATTACK ONE BY ONE HUNDREDS OF POLITICIANS ACCUSED OF TAKING BRIBES AND BUSINESSMEN WHO GOT FAVORS ARE GOING TO JAIL BUT IT IS HARD TO FIND ANYONE IN ITALY WHO HASN'T SOUGHT A LITTLE PATRONAGE BENT THE LAW A LITTLE OR WILLINGLY ACCEPTED A CORRUPT GOVERNMENT'S LARGESS ESPECIALLY THE LAST CIVIL SERVANTS LIKE MR GASPERONI WORK FEWER HOURS BUT EARN MORE THAN EUROPE'S OTHER PUBLIC WORKERS EXCEPT IN GERMANY UNTIL THE SCANDAL BROKE SOME PUBLIC WORKERS WERE RETIRING AT AGE 35 WITH 100 PENSION A NERVOUS STOMACH AND A WORD FROM A FRIENDLY POLITICIAN STILL CAN QUALIFY A WORKER FOR LIFETIME DISABILITY AS A RESULT NEARLY AS MANY ITALIANS LIVE ON GOVERNMENT BENEFITS AS HOLD DOWN JOBS SHOPKEEPERS PLUMBERS EVEN DOCTORS ASK IF CLIENTS WANT A RECEIPT IF NO RECEIPT EXISTS WHY WOULD THE SERVICE PROVIDER REPORT THE INCOME TO THE GOVERNMENT THE GOVERNMENT ESTIMATES TAXPAYERS HIDE 260 TRILLION LIRE 168 BILLION IN INCOME EACH YEAR LAST YEAR SIENA'S BESTKNOWN CITIZEN JOCKEY ANDREA DE GORTES GOT FINED 1 MILLION FOR HIDING INCOME IF I HAD TO PAY ALL MY TAXES IT WOULD RUIN ME MR DE GORTES SAYS THUS FEW PEOPLE CAN CLAIM MANI PULITE OR CLEAN HANDS AS THE INVESTIGATION INTO OFFICIAL WRONGDOING IS KNOWN EVERYONE SAYS AUTHOR UMBERTO ECO KNEW WHOM TO GO TO FOR A FAVOR HOW MUCH IT COST HOW TO GET OFF WITHOUT PAYING A FINE AND HOW TO FIND SOME SMALL NOT VERY TIRING JOB DOESN'T THIS MAKE THE PEOPLE OF ITALY AT LEAST PARTLY TO BLAME FOR THE COUNTRY'S POLITICAL AND FISCAL DEBACLE INCLUDING A 110 TRILLION LIRE NATIONAL DEBT EUROPE'S SECOND WORST NO WAY SAYS MR GASPERONI IN FACT HE WORRIES THAT A NEW REFORMMINDED GOVERNMENT WILL SCALE THINGS BACK IF SOMETHING HAS TO BE CUT LET IT BE BOMBERS OR THE PLANS FOR A HIGHSPEED TRAIN FROM ROME TO MILAN BUT THEY MUST NOT CUT THE THINGS THAT MAKE OUR QUALITY OF LIFE HIGH BECAUSE SO MANY ITALIANS FEEL THE SAME WAY REAL REFORM WILL MEAN CHANGING THE NATIONAL CONSCIENCE MR ECO VENTURES THAT WON'T BE EASY SINCE THREE POSTWAR GENERATIONS HAVE KNOWN NO OTHER WAY WHEN AUTHORITIES TRIED A FEW YEARS BACK TO CRACK DOWN ON CIGARETTE SMUGGLING IN NAPLES A BILLIONDOLLAR BUSINESS MERCHANTS CALLED A GENERAL STRIKE CLAIMING THE CRACKDOWN WOULD RUIN BUSINESSES AND PUT TRUCKERS WHO DELIVER CONTRABAND CIGARETTES OUT OF WORK THE OLD SYSTEM OF POLITICS WAS CLEAR THROUGH A SERIES OF STATECONTROLLED COMPANIES SUCH AS ISTITUTO PER LA RECOSTRUZIONE WITH 420000 EMPLOYEES AND NOW 4 BILLION IN DEBT THE DOMINANT PARTIES CONTROLLED HUGE SECTORS OF THE ECONOMY THIS SYSTEM OF DIVIDING UP THE SPOILS PROVIDED A SEEMINGLY BOTTOMLESS JOB POOL FOR MEMBERS OF THE CHRISTIAN DEMOCRAT SOCIALIST AND COMMUNIST PARTIES CONSIDER ITALY'S THREE PUBLIC TELEVISION STATIONS EACH ONE GOT FUNDING SO THAT NONE OF THE PARTIES LACKED A TV OPERATION TO STAFF WITH PARTY LOYALISTS MASSIMO DONELLI WHO REPORTS FROM MILAN ACKNOWLEDGES HE GOT HIS JOB AT RAI 3 THE FORMER COMMUNISTS' STATION BECAUSE HE IS A PARTY MEMBER WITH THE TELEVISION SYSTEM UNDER SCRUTINY NOW MR DONELLI FEARS FOR HIS JOB SOMEONE JUST MIGHT QUESTION WHY DOES ITALY NEED THREE PUBLIC STATIONS BUT OLD HABITS DIE HARD ALREADY THE NORTHERN LEAGUE WHICH HAS BEEN GAINING SUPPORT IS ANGLING TO TAKE OVER A STATION CLAIMING IT NOW HAS MORE SUPPORTERS THAN THE FORMER COMMUNIST PARTY THE RESULT THE STATION IS FULL OF FORMERCOMMUNISTS WHO HAVE SWITCHED TO THE LEAGUE JUST IN CASE THE LEAGUE TAKES OVER ITALY'S NATIONAL HEALTH SYSTEM WHICH PAID OUT 249 BILLION LIRE FOR THERMAL SPA TREATMENTS LAST YEAR IS ANOTHER PATRONAGE CENTER ITALY'S RATIO OF ONE DOCTOR PER 250 INHABITANTS IS EUROPE'S HIGHEST BUT ITALIANS ARE IN NO MOOD TO PAY MORE FOR GOVERNMENT SERVICES PAULO VITTI AND DONATELLA SCARTEZZINI BECAME FOLK HEROS WHEN THEY REFUSED TO PAY HIGHER HEALTHCARE FEES AND INSTEAD SENT PRESIDENT OSCAR LUIGI SCALFARO THE KEYS TO THEIR HOUSE AND A NOTE SAYING THERE IS NOTHING ELSE TO GIVE HOWEVER SOME ITALIANS ARE USING THIS UNPLEASANT PERIOD TO DO A BIT OF SOULSEARCHING MARA BOSCARINI WHO OWNS A FRAME SHOP IN THE SHADOW OF SIENA'S FAMOUS BLACKANDWHITE BYZANTINE CATHEDRAL SAYS SHE RAN HER BUSINESS AND HER LIFE MUCH LIKE THE GOVERNMENT BUY NOW PAY LATER THINKING ITALY'S 1980S BOOM WOULD NEVER BUST SHE OVERSTOCKED HER SHOP BUILT A THREESTORY COUNTRY HOUSE AND BOUGHT THREE CARS NOW INSTEAD OF BUYING READYMADE FRAMES IN HUGE QUANTITIES MS BOSCARINI SAYS SHE WILL MAKE A SMALLER NUMBER OF FRAMES HERSELF AS SHE DID WHEN SHE STARTED THE BUSINESS SHE THINKS THE WAY HER PARENTS LIVED A HALF CENTURY AGO MAKES SENSE FOR ITALY TODAY WE DIDN'T WASTE ANYTHING WE HAD WHAT WAS NECESSARY BUT NEVER TOO MUCH 9309170007 930917 LAW LEGAL BEAT PLAN BOOSTING PROSECUTORS' POWER IN PROBING COMPANIES DRAWS FIRE BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE LAWYERS ARE UP IN ARMS OVER A PROPOSED FEDERAL RULE THAT WOULD ALLOW PROSECUTORS TO SPEAK DIRECTLY AND SECRETLY TO CORPORATE EMPLOYEES IN CRIMINAL INVESTIGATIONS RATHER THAN GO THROUGH THE COMPANIES' INHOUSE COUNSEL'S OFFICES THE JUSTICE DEPARTMENT IS WEIGHING PUBLIC COMMENTS ON THE MEASURE WHICH WOULD GIVE THE DEPARTMENT AND US ATTORNEY'S OFFICES BROADER POWER TO INVESTIGATE CORPORATE WRONGDOING THE PROPOSED RULE EMBRACES A CONTROVERSIAL INTERNAL POLICY ADOPTED IN 1989 BY THENATTORNEY GENERAL RICHARD THORNBURGH THAT HAS BEEN STRONGLY OPPOSED BY CRIMINALDEFENSE LAWYERS AND CORPORATE COUNSEL GROUPS SINCE 1989 SOME FEDERAL COURTS HAVE REJECTED THE JUSTICE DEPARTMENT'S CONTENTION THAT THE SOCALLED THORNBURGH MEMORANDUM IS LEGALLY ENFORCEABLE AND AN EFFORT BY THE BUSH ADMINISTRATION TO ENACT IT THROUGH THE USUAL RULEMAKING PROCESS WAS DROPPED AFTER PRESIDENT CLINTON WAS ELECTED BUT IN A MEMO TO THE CHIEF JUSTICES OF ALL STATE SUPREME COURTS AND TO KEY ATTORNEYS IN JULY ATTORNEY GENERAL JANET RENO REVIVED THE ISSUE BY OPENING A 30DAY PERIOD FOR COMMENT THE PROPOSED ADDITION TO THE CODE OF FEDERAL REGULATIONS WOULD PERMIT JUSTICE DEPARTMENT PROSECUTORS TO CIRCUMVENT ONE OF THE LEGAL PROFESSION'S MOST TIMEHONORED ETHICS RULES THAT A LAWYER CANNOT CONTACT SOMEONE WITHOUT FIRST ALERTING THAT PERSON'S LAWYER IN THE CASE OF A COMPANY THE GENERAL COUNSEL'S OFFICE OFTEN VIEWS ITSELF AS THE ATTORNEY FOR ALL EMPLOYEES ON JOBRELATED MATTERS THE ETHICAL PROHIBITION IS INTENDED TO PROTECT INDIVIDUALS FROM OVERZEALOUS LAWYERS AND PROSECUTORS AND TO ENSURE THAT OPPOSING ATTORNEYS REMAIN FULLY INFORMED SO THEY CAN REPRESENT THEIR CLIENTS PROPERLY BARRING EXPARTE CONTACTS BY PROSECUTORS HOWEVER HAS LONG FRUSTRATED THE LAWENFORCEMENT COMMUNITY THIS IS PARTICULARLY SO WHEN A LAWYER FOR A SUSPECTED CRIMINAL ORGANIZATION OR THE GENERAL COUNSEL OF A COMPANY CLAIMS TO REPRESENT ALL ITS MEMBERS OR EMPLOYEES THE RESULT OFTEN IMPEDES ACCESS TO INDIVIDUALS WHO MIGHT BE HELPFUL TO THE PROSECUTION THE DEADLINE FOR COMMENT ON THE PROPOSAL WAS AUG 25 AND THE JUSTICE DEPARTMENT IS REVIEWING 220 RESPONSES INCLUDING 93 FROM US ATTORNEYS WHO FAVOR THE POLICY AND A MEETING ON THE ISSUE BETWEEN JUSTICE OFFICIALS AND CRIMINALDEFENSELAWYER GROUPS HAS BEEN SCHEDULED IN WASHINGTON FOR WEDNESDAY THE DEPARTMENT'S OBJECTIVE SAID SPOKESMAN CARL STERN IS TO ESTABLISH A MIDDLE GROUND IN CIVIL AND CRIMINAL CASES THAT WOULD PERMIT IT UNDER SOME CIRCUMSTANCES TO CONTACT INDIVIDUALS WITHOUT NOTIFYING THEIR ATTORNEYS BUT THOUGH THE DEPARTMENT IS CONSIDERING ADOPTING THE THORNBURGH MEMORANDUM MS RENO HAS NOT DECIDED WHETHER TO DO SO MR STERN CAUTIONED SOME LEGALETHICS EXPERTS CONTEND THAT THE RULE CHANGE IS NECESSARY TO HELP PROSECUTORS PENETRATE CORPORATIONS THAT MAY BE SEEKING TO SHIELD THEMSELVES FROM LIABILITY MY OWN PERSONAL VIEW SAYS YALE LAW SCHOOL PROFESSOR GEOFFREY HAZARD JR IS THAT IT'S NECESSARY BUT INHOUSE COMPANY LAWYERS AND CRIMINALDEFENSE ATTORNEYS COUNTER THAT THE CHANGE WOULD IMPROPERLY EXEMPT GOVERNMENT PROSECUTORS FROM A CODE OF ETHICS BY WHICH ALL OTHER LAWYERS ARE BOUND IN THE CASE OF A BUSINESS UNDER INVESTIGATION ALLOWING PROSECUTORS TO CONTACT EMPLOYEES SECRETLY DENIES THE CORPORATION THE RIGHT TO COUNSEL ARGUES DANIEL S HAPKE JR CHAIRMAN OF THE 9300MEMBER AMERICAN CORPORATE COUNSEL ASSOCIATION WHEN COMBINED WITH THE POTENTIAL FOR TAKING ADVANTAGE OF A NONLAWYER AND IN LIGHT OF THE TREMENDOUS POWER AND AUTHORITY OF THE GOVERNMENT MR HAPKE SAID SUCH AN APPROACH IS UNFAIR AND SUBJECT TO ENORMOUS POTENTIAL FOR ABUSE CORPORATE LAWYERS CITE THE CASE OF BORDEN INC AS AN EXAMPLE OF THAT POTENTIAL WHEN THE JUSTICE DEPARTMENT WAS INVESTIGATING BIDRIGGING ALLEGATIONS AGAINST THE NEW YORKBASED FOOD CONCERN SEVERAL YEARS AGO PROSECUTORS RELIED ON THE THORNBURGH MEMORANDUM AND ROUTINELY CONTACTED EMPLOYEES BY PHONE AND EVEN AT HOME SAYS WALTER W KOCHER BORDEN'S GENERAL COUNSEL THE GOVERNMENT WANTS TO BE ABLE TO RELY ON THE INDIVIDUAL STATEMENT AS AN ADMISSION TO HOLD THE COMPANY LIABLE HE SAYS BUT IT DOESN'T WANT TO GIVE THE COMPANY THE PROTECTION AFFORDED BY THE CONSTITUTION THAT IS TO BE REPRESENTED BY COUNSEL OR TO DEAL THROUGH COUNSEL THE BORDEN INVESTIGATION RESULTED IN GUILTY PLEAS BY THE COMPANY TO THREE COUNTS OF CONSPIRING TO FIX BIDS FOR MILK PRODUCTS SOLD TO SCHOOLS AND MILITARY INSTALLATIONS IN THE SOUTHEAST MR KOCHER SAYS BORDEN COOPERATED FULLY DIDN'T CHALLENGE THE EXPARTE CONTACTS IN COURT AND LEFT IT UP TO INDIVIDUAL EMPLOYEES WHETHER THEY WANTED COMPANY LAWYERS SITTING IN ON INTERVIEWS WITH PROSECUTORS REGARDLESS OF HOW EFFECTIVE THE THORNBURGH POLICY MAY HAVE BEEN IN CASES IN WHICH IT WAS USED JUDGES HAVE BEEN EXTREMELY CRITICAL OF IT TWO YEARS AGO US DISTRICT JUDGE MARILYN HALL PATEL OF SAN FRANCISCO THREW OUT COCAINE AND HEROIN DISTRIBUTION CHARGES AGAINST A DEFENDANT BECAUSE A FEDERAL PROSECUTOR PROCEEDING UNDER THE THORNBURGH DIRECTIVE NEGOTIATED A PLEA BARGAIN BEHIND THE BACK OF THE DEFENDANT'S LAWYER A FEDERAL APPEALS COURT REINSTATED THE INDICTMENT BUT BACKED UP JUDGE PATEL'S DENUNCIATION OF THE TACTIC IN MAY IN A CRIMINAL CASE IN WASHINGTON DC A FEDERAL JUDGE DISMISSED THE JUSTICE DEPARTMENT'S CONTENTION THAT THE CONTACT WAS PERMISSIBLE BECAUSE THE THORNBURGH DIRECTIVE HAD THE EFFECT OF FEDERAL LAW WROTE US DISTRICT JUDGE NORMA H JOHNSON IT IS NO MORE THAN A UNILATERAL STATEMENT OF JUSTICE DEPARTMENT POLICY BY THE ATTORNEY GENERAL THAT WOULD CHANGE IF THE DEPARTMENT ADOPTS THE POLICY IN THE CODE OF FEDERAL REGULATIONS WHICH WOULD CREATE A LAW THAT WOULD SUPERSEDE STATE ETHICS RULES SHOULD THAT HAPPEN SUGGESTS MR HAPKE OF THE AMERICAN CORPORATE COUNSEL ASSOCIATION OTHER REGULATORY AGENCIES WOULD BE LIKELY TO FOLLOW SUIT AND SEEK DIRECT ACCESS TO CORPORATE EMPLOYEES THEMSELVES ONCE GIVEN THAT TOOL SAYS MR HAPKE WE'RE CONCERNED IT'S GOING TO LEAD TO A NUMBER OF OUR EMPLOYEES CONTACTED BY LAWYERS GRILLED BY LAWYERS WITHOUT OUR KNOWING ABOUT IT HEMOPHILIACS WHO CONTRACTED AIDS FROM A BLOODCLOTTING PRODUCT HAVE WON SOME RECENT VICTORIES IN COURT AND NOW THEY WANT A PANEL OF FEDERAL JUDGES TO CONSOLIDATE LIABILITY SUITS AGAINST MANUFACTURERS IN ONE OF THE LEGAL ADVANCES FOR THE PLAINTIFFS JUDGE JOHN F GRADY IN CHICAGO RULED THAT A PLAINTIFF DOESN'T NECESSARILY HAVE TO PROVE WHICH OF FOUR MAJOR MANUFACTURERS MADE THE SOCALLED FACTOR VIII CLOTTING PRODUCT THE LAWSUIT BEFORE JUDGE GRADY WHICH IS SCHEDULED FOR TRIAL IN OCTOBER ALLEGES THAT THE FOUR MANUFACTURERS KNEW HEPATITIS AND OTHER VIRUSES WERE PRESENT IN BLOOD USED TO MAKE THE PRODUCT THEY SHOULD HAVE ACTED IN THE LATE 1970S TO PURIFY FACTOR VIII THROUGH HEAT TREATMENT OR OTHER METHODS ACCORDING TO THE SUIT FILED BY CHICAGO ATTORNEYS LEONARD RING AND DEBRA A THOMAS THEY REPRESENT THE FAMILY OF STEPHEN POOLE WHO DIED IN 1987 AFTER USING THE CLOTTING FACTOR FOR A DECADE THE FOUR COMPANIES THAT MADE FACTOR VIII AT THE TIME WERE BAXTER INTERNATIONAL INC'S HYLAND DIVISION THE ARMOUR PHARMACEUTICAL UNIT OF RHONEPOULENC RORER INC ALPHA THERAPEUTIC CORP PART OF JAPAN'S GREEN CROSS CORP AND BAYER AG'S MILES INC UNIT HUNDREDS OF LAWSUITS HAVE BEEN FILED ALLEGING NEGLIGENCE IN FAILING TO PURIFY FACTOR VIII BEFORE THE MID1980S WHEN IT WAS LEARNED THAT AIDS CAN BE TRANSMITTED THROUGH BLOOD AND BLOOD PRODUCTS AN ESTIMATED 10000 HEMOPHILIACS HAVE DIED FROM AIDSCONTAMINATED FACTOR VIII MANY OF THE CASES WERE CONTRACTED BEFORE THE ADVENT OF HEAT PURIFICATION ONE IMPEDIMENT FOR PLAINTIFFS HAS BEEN AN INABILITY TO PROVE WHICH COMPANY MADE THE PRODUCT USED BY A SPECIFIC PERSON JUDY KAVANAUGH A PLAINTIFF ATTORNEY IN SARASOTA FLA SAID THE THEORY OF ALTERNATIVE LIABILITY APPROVED BY JUDGE GRADY ALSO HAS BEEN EMPLOYED IN FLORIDA LITIGATION OVER FACTOR VIII MANUFACTURERS SAY THEY HAD NO IDEA UNTIL ABOUT 1984 THAT HUMAN BLOOD CONTAINED THE AIDS VIRUS AS SOON AS THEY KNEW THEY CONTEND THEY PRODUCED A HEATPURIFICATION PROCESS IN 1984 PLAINTIFFS CONTEND THE TECHNOLOGY WAS AVAILABLE BY THE LATE 1970S SUCH A TREATMENT CONTENDS MS KAVANAUGH WOULD HAVE SAVED ALL HEMOPHILIACS IN JANUARY A FEDERAL COURT JURY IN TAMPA AWARDED A 2 MILLION VERDICT AGAINST ARMOUR TO THE FAMILY OF JASON CHRISTOPHER A BOY WHO DIED LAST YEAR AFTER RECEIVING THE CLOTTING FACTOR IN THE EARLY 1980S THAT VERDICT HAS BEEN APPEALED SEVERAL OTHER JURIES HAD FOUND FOR DEFENDANTS WHILE OTHER CASES HAVE BEEN SETTLED A GROUP OF OTHER PLAINTIFF ATTORNEYS INCLUDING MS KAVANAUGH HAVE PETITIONED THE FEDERAL MULTIDISTRICT LITIGATION PANEL TO CONSOLIDATE FOR FACTFINDING THE FEDERAL LAWSUITS FILED AROUND THE COUNTRY A HEARING ON THE PETITION IS SET FOR THURSDAY IN CHARLESTON SC ASBESTOS PLAN BACKED A 1 BILLION SETTLEMENT PLAN THAT WOULD COVER ALL FUTURE PERSONALINJURY CLAIMS AGAINST 20 FORMER ASBESTOS MAKERS WON THE BACKING OF THE PENNSYLVANIA ATTORNEY GENERAL NOTING THAT COURTS IN THE STATE HAVE BEEN SWAMPED BY ASBESTOS CASES ATTORNEY GENERAL ERNIE PREATE JR SAID IN A COURT FILING THAT THE NATIONWIDE SETTLEMENT IS AN IMPORTANT FIRST STEP TOWARD SOLVING THIS CRISIS AND URGED OTHER COMPANIES TO FOLLOW SUIT HE SAID THE PLAN WHICH SETS UP AN ADMINISTRATIVE PROCEDURE TO PROCESS THE CLAIMS WILL UNCLOG THE COURTS MAKE IT EASIER FOR VICTIMS TO COLLECT DAMAGES AND PRESERVE THE DEFENDANTS' ASSETS THE PLAN WAS ANNOUNCED IN JANUARY AND IS PENDING APPROVAL IN FEDERAL COURT IN PHILADELPHIA THOMAS BURTON IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9309170006 930917 TECHNOLOGY IBM TARGETS INTEL'S CHIP MONOPOLY WITH COMPUTER BASED ON ONE OF ITS OWN BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE INTRODUCTION NEXT WEEK OF INTERNATIONAL BUSINESS MACHINES CORP'S FIRST COMPUTER TO BE FIRED BY THE MUCHAWAITED POWERPC MICROPROCESSOR THE BATTLE TO UNLOCK INTEL CORP'S CHIP MONOPOLY BEGINS IBM PLANS TO ANNOUNCE TUESDAY AN ENTRYLEVEL WORKSTATION BASED ON THE SOCALLED 601 POWERPC CHIP THE CHIP IS THE RESULT OF A COLLABORATIVE EFFORT AMONG IBM MOTOROLA INC AND APPLE COMPUTER INC THAT BEGAN TWO YEARS AGO INDUSTRY EXPERTS SAY PERSONAL COMPUTERS BY APPLE AND IBM THAT WILL ALSO WORK ON THE NEW HIGHPOWERED CHIP ARE EXPECTED TO FOLLOW WITHIN THE NEXT YEAR IN ADDITION IBM HAS STARTED SHIPPING THE MICROPROCESSOR CHIPS TO MANUFACTURERS AT 275 TO 300 EACH A PRICE LESS THAN HALF THAT OF INTEL'S PENTIUM CHIP IBM'S SALES OF SPECIALIZED WORKSTATIONS ALONE WON'T PUT MUCH OF A DENT IN INTEL'S GIGANTIC 90 SHARE OF THE MICROPROCESSOR MARKET CURT NICHOLS MARKETING DIRECTOR FOR INTEL'S PENTIUM CHIP PROCESS SAYS INTEL ISN'T WORRIED BY IBM'S ENTRY INTO THE MARKET THIS IS NOT A MAINSTREAM PRODUCT HE SAYS OF THE WORKSTATION HE ADDS THE BELIEF THAT USERS DON'T CARE WHAT CHIPS COST THEY CARE WHAT THE SYSTEM DOES BUT IF IBM AND APPLE CAN PRODUCE BROADBASED PERSONAL COMPUTERS AND THE ESSENTIAL OPERATING SYSTEMS THAT CAN RUN ON THE POWERPC THEY WILL PRESENT PROBLEMS FOR INTEL IT'S INTEL'S GAME TO LOSE SAYS CURT ROHRMAN OF CS FIRST BOSTON WHETHER IBM SUCCEEDS DEPENDS ON SEVERAL CRUCIAL FACTORS THE MOST IMPORTANT IS WHETHER THE POWERPC WILL RUN SOFTWARE WRITTEN FOR OTHER MICROPROCESSORS THE PROBLEM SO FAR IS THAT MOST SOFTWARE IS DESIGNED TO WORK ON THE INTEL CHIP AND TRANSLATING PROGRAMS TO A DIFFERENT MODEL TAKES A LOT OF TIME RIGHT NOW ACCORDING TO INDUSTRY ANALYSTS WINDOWS THE MOST POPULAR OPERATING SYSTEM IN THE WORLD RUNS VERY SLOWLY ON THE POWERPC WHO IS GOING TO BUY POWERPC JUST TO RUN WINDOWS SLOWLY ASKS STEPHEN SMITH AN IBM ANALYST AT PAINEWEBBER IT'S GOING TO BE A FAILURE IN A PRESENTATION PAPER HANDED OUT TO ANALYSTS AT A BRIEFING THIS WEEK IBM CLAIMS THAT THE POWERPC WILL RUN SOFTWARE WRITTEN FOR NUMEROUS OPERATING SYSTEMS INCLUDING MICROSOFT CORP'S DOS AND WINDOWS ITS OWN OS/2 AND AIX THE IBM VERSION OF UNIX AND APPLE'S SYSTEM 7 APPLICATIONS BUT THE PAPER ALSO LISTS IMPROVED SOFTWARE PERFORMANCE AS A KEY SUCCESS FACTOR FOR POWERPC IBM ACCORDING TO INDUSTRY EXPERTS HAS SAID POWERPC MOST LIKELY WILL ALSO RUN WINDOWS NT MICROSOFT'S SOUPEDUP NEW OPERATING SYSTEM THE IBM WORKSTATION WILL SELL FOR UNDER 5000 MORE COMPETITORS ANOTHER OBSTACLE IS THE LIKELIHOOD THAT THE CHIP MARKET IS GOING TO SOON BE OVERLOADED IN ADDITION TO INTEL AND THE POWERPC PROJECT HEWLETTPACKARD CO SILICON GRAPHICS INC SUN MICROSYSTEMS INC AND DIGITAL EQUIPMENT CORP ARE ALSO WORKING ON COMPETING CHIPS THAT ARE EXPECTED TO COME TO MARKET IN THE NEXT SIX MONTHS GIVEN THE POTENTIAL VOLUME OF CHIPS MR ROHRMAN PREDICTS A PRICE WAR THAT WILL CUT SHARPLY INTO INTEL'S PROFIT MARGINS AND LEAVE FEW WINNERS EXPERTS SAY THEY HAVEN'T NOTICED ANY PRICECUTTING YET BY INTEL AND SOME EXPECT THE BATTLE FOR THE INTEL CHALLENGERS TO BE A LONG AND DIFFICULT ONE GIVEN THE FACT THAT INTEL IS SO ENTRENCHED IN THE MARKET NOW ACCORDING TO KEN LOWE PRINCIPAL ANALYST WITH DATAQUEST INTEL NOW SHIPS SEVEN MILLION CHIPS PER QUARTER IBM'S ENTIRE WORKSTATION LINE SHIPS ONLY 20000 UNITS PER QUARTER THE POWERPCFIRED WORKSTATION IS ONLY THE BEGINNING OF A CHAIN OF EVENTS SAYS MR LOWE INDEED IBM HAS BIGGER PLANS THAN JUST THE POWERPC THIS MONTH INDUSTRY EXPERTS PREDICTED IBM WAS WORKING ON AN ACTUAL CLONE OF THE INTEL CHIP 9309170005 930917 WHO'S NEWS AMERICAN SCIENCE TAPS SHERIDAN FOR PRESIDENT AND CHIEF EXECUTIVE CAMBRIDGE MASS AMERICAN SCIENCE & ENGINEERING INC NAMED RALPH S SHERIDAN 43 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER AT ITS ANNUAL MEETING HELD EARLIER THIS WEEK THE MAKER OF XRAY INSPECTION SYSTEMS SAID MR SHERIDAN HAS BEEN WORKING AT THE COMPANY AS A CONSULTANT AND ACTING CHIEF EXECUTIVE SINCE LATE JULY AS CHIEF HE FILLS A POST PREVIOUSLY HELD BY DR MARTIN ANNIS WHO LEFT THE COMPANY THE POST OF PRESIDENT HAD BEEN HELD BY RICHARD F SULLIVAN 35 WHO IS ON A LEAVE THE COMPANY SAID IN ADDITION THE COMPANY SAID IT HAS BEEN SUED BY ITS PREVIOUS CHAIRMAN AND COMPANY FOUNDER DR MARTIN ANNIS 71 WHO HAS ALLEGED A WRONGFUL TERMINATION BY THE COMPANY JAMES C NEMIAH VICE PRESIDENT AND GENERAL COUNSEL FOR AMERICAN SCIENCE SAID THE COMPANY ITS DIRECTORS AND OFFICERS WERE SUED BY DR ANNIS FOR MONETARY DAMAGES OF 24 MILLION MR NEMIAH SAID THE SUIT WAS FILED IN MASSACHUSETTS SUPERIOR COURT ON AUG 18 ALLEGING THAT THE COMPANY OWED DR ANNIS FINANCIAL COMPENSATION UNDER A MEMORANDUM OF UNDERSTANDING WITH THE COMPANY DATED JULY 1 1993 THE COMPANY ANNOUNCED ON JULY 2 THAT DR ANNIS WOULD RETIRE FROM THE COMPANY AT THE ANNUAL MEETING HOWEVER LATER IN THE MONTH THE CONCERN SAID ITS BOARD HAD ACCELERATED DR ANNIS'S RETIREMENT TO TAKE EFFECT JULY 27 MR NEMIAH SAID THE COMPANY IS CONFIDENT THAT IT WILL PREVAIL IN THE SUIT THROUGH A SPOKESWOMAN DR ANNIS DECLINED COMMENT WITH RESPECT TO MR SHERIDAN'S APPOINTMENT MR NEMIAH SAID WE'VE GOT OUTSTANDING TECHNOLOGY BUT WE'VE BEEN WEAK IN SALES AND MARKETING WE HOPE TO CHANGE 9309170004 930917 REVIEW & OUTLOOK EDITORIAL A RADICAL'S CONFESSION THE WORDY SURRENDER WEDNESDAY OF KATHERINE ANN POWER TO FEDERAL AUTHORITIES HELPS TO DEFINE THE '60S LEGACY AS IT PLAYS ITSELF OUT IN THE POLITICIZED CULTURE OF THE 1990S VANDALISM AND ANARCHY WERE OF COURSE A REGULAR FEATURE OF THE '60S STUDENT REBELLION WHEN THEY TRANSMUTED INTO OUTRIGHT POLITICAL MURDER IN 1970 MOST NOTORIOUSLY WITH THE LETHAL BOMBING OF THE ARMY MATH RESEARCH CENTER AT THE UNIVERSITY OF WISCONSIN MS POWER FELL INTO STEP THAT YEAR SHE AND HER FRIENDS TRIED TO FUND THEIR PROTESTS BY ROBBING A BANK IN BOSTON THEY SHOT AND KILLED A POLICE OFFICER WALTER SCHROEDER THE FATHER OF NINE CHILDREN HOW DOES MS POWER FEEL ABOUT HER ACTIONS NOW AFTER 23 YEARS ON THE LAM AND PERHAPS A MOMENT OR TWO SPENT REFLECTING ON HER PAST TO JUDGE BY THE STATEMENT SHE RELEASED AT THE TIME OF HER SURRENDER SHE FEELS PRETTY BADBAD ABOUT WHAT THE WHOLE EPISODE HAS DONE TO HER FEELINGS ABOUT HERSELF MS POWER TELLS THE WORLD SHE IS TIRED OF LIVING WITH SHAME AND HIDDENNESS AND IS NOW LEARNING TO LIVE WITH OPENNESS AND TRUTH SHE ALSO REGRETS THE SEPARATIONS CAUSED BY HER FLIGHT AND ASKS THAT HER FRIENDS FORGIVE HER LONG ABSENCE AS SHE NOW FACES WITH GRACE THE PROSPECT OF A PRISON TERM AFTER WHICH SHE WILL CONTINUE A LIFE OF CONNECTION SERVICE AND JOY THIS IS ALL VERY TOUCHING IF VACUOUS AND WEIRDLY SELFCONGRATULATORY BUT WHAT ABOUT THE MURDEROUS ACTIONS OF HER BANKROBBING BAND DOES SHE ASK FORGIVENESS OF SAY HER VICTIM'S WIFE DOES SHE TAKE RESPONSIBILITY FOR HER ACTIONS FAT CHANCE WE ARE DEALING AFTER ALL WITH A GENUINE '60S STUDENT REVOLUTIONARY IN A VIRTUOSO DISPLAY OF THE SELFRIGHTEOUSNESS THAT IS A HALLMARK OF HER GENERATION MS POWER EXPLAINS THAT SHE ACTED AS SHE DID OUT OF A DEEP PHILOSOPHICAL AND SPIRITUAL COMMITMENT THAT IF A WRONG EXISTS ONE MUST TAKE ACTIVE STEPS TO STOP IT REGARDLESS OF THE CONSEQUENCES TO ONESELF IN COMFORT AND SECURITY CONSEQUENCES TO ONESELF BUT MR SCHROEDER IS DEAD WHAT ABOUT THE CONSEQUENCES TO HIM MS POWER IS APPARENTLY TOO WRAPPED UP IN CONCERN FOR HER OWN COMFORT AND SECURITY DISRUPTIONS TO WHICH SHE ENDURED OUT OF PRINCIPLE WE NOW KNOW TO BOTHER WITH THIS TROUBLING QUESTION ONLY A VETERAN OF THE 1960S COULD SO BLITHELY TRANSFORM MURDER INTO AN ACT OF SELFSACRIFICE MUCH OF MS POWER'S STATEMENT IS GIVEN OVER TO DEFENSIVE PSYCHOBABBLE AND THE EXCULPATORY LOGIC THAT IS COMMON THESE DAYS IN THE RHETORIC OF SELFABSORBED VICTIMHOOD MS POWER LONGS TO LIVE WITH FULL AUTHENTICITY IN THE PRESENT SHE HAS BEEN TRYING TO GROW AS A PERSON OF PEACE APPALLINGLY SHE LIKENS HERSELF TO VIETNAM VETERANS WHO ARE SUPPOSEDLY UNDERGOING A SIMILAR GROWTH ONLY A LIFELONG DEPRESSION WE ARE TOLD HAS KEPT HER FROM COMING FORWARD BEFORE NOW SO IN A WAY SHE IS A VICTIM TOO OF A CLINICAL CONDITION AS FOR THE DEED ITSELF WELL THE COUNTRY WAS IN A DEEP AND VIOLENT CRISIS AT THE TIME MS POWER EXPLAINS WHY EVEN PRIESTS AND NUNS DESTROYED DRAFT RECORDS AND BESIDES SHE WASN'T DIRECTLY RESPONSIBLE FOR THE MURDER SINCE SOMEONE ELSE PULLED THE TRIGGER WHAT DID SHE THINK THE GUNS WERE FOR AS SHE SAT IN THE GETAWAY CAR NEARBY SYMBOLISM IN SUCH A WAY SHE WAS NOT DIRECTLY RESPONSIBLE FOR THE DEATH THEY LEFT BEHIND HER STATEMENT TELLS US SOMEHOW WE DOUBT WHETHER MR SCHROEDER'S WIDOW WILL FIND THESE EXPLANATIONS FOR HER HUSBAND'S DEATH OR FOR MS POWER'S ROLE IN IT VERY CONVINCING THEY ARE HOWEVER A PERFECT EXPRESSION OF THE WAY CERTAIN OF THE '60S GENERATION HAVE COME TO TERMS WITH THEIR PAST BY EVADING IT BY TURNING MOMENTS OF MORAL RECKONING INTO BOGUS ACTS OF PERSONAL GROWTH THAT IS BY ALLOWING DISHONESTY LOW SELFRIGHTEOUS DISHONESTY TO PASS FOR OPENNESS AND TRUTH 9309170003 930917 UNITED BISCUITS POSTS PRETAX EARNINGS RISE TIED TO SPECIAL GAIN SPECIAL TO THE WALL STREET JOURNAL LONDON UNITED BISCUITS HOLDINGS PLC A BRITISH FOOD COMPANY THAT OWNS THE KEEBLER BRAND OF COOKIES POSTED A 91 RISE IN FIRSTHALF PRETAX PROFIT ALTHOUGH MOST OF THE RISE CAME FROM A SPECIAL GAIN OF 627 MILLION 969 MILLION INDEED THE RESULTS WERE BELOW MARKET EXPECTATIONS PRETAX PROFIT TOTALED 1335 MILLION IN THE HALF ENDED JULY 17 UP FROM 70 MILLION SALES ROSE 20 TO 184 BILLION FROM 153 BILLION THE COMPANY WAS GENERALLY OPTIMISTIC DESPITE WHAT IT CALLED A DIFFICULT BUSINESS ENVIRONMENT THE GROUP WILL SHOW A SATISFACTORY INCREASE IN PROFIT IN THE SECOND HALF AND FOR THE YEAR AS A WHOLE SIR ROBERT CLARKE CHAIRMAN SAID KEEBLER THE COMPANY'S US SNACK FOOD DIVISION IS EXPECTED TO SHOW A BIGGER PROFIT AT THE END OF 1993 THAN IT DID LAST YEAR MR CLARKE SAID THE MAIN UK BUSINESS HOWEVER ISN'T LIKELY TO SHOW ANY IMPROVEMENT FOR THE YEAR HE SAID PROFIT MARGINS FELL IN MCVITIE'S GROUP AS THE COMPANY FOUGHT TO MAINTAIN MARKET SHARE MCVITIE'S SALES ROSE 65 TO 4338 MILLION WHILE ITS OPERATING PROFIT FELL 57 TO 449 MILLION BUT THE COMPANY GAINED MARKET SHARE AND PROFIT GROWTH IN CONTINENTAL EUROPE RECENT ACQUISITIONS ARE EXPECTED TO HELP BOOST SECONDHALF PERFORMANCE THE COMPANY SAID EXCLUDING EXCEPTIONAL GAINS UNITED BISCUITS' PRETAX PROFIT WAS UP 1 TO 708 MILLION FOR THE SIX MONTHS ENDED JULY 17 THE EXCEPTIONAL GAIN WAS THE RESULT OF ITS SALE OF TERRY'S GROUP PROFIT MARGINS HAVE BEGUN TO IMPROVE IN THE US WHERE SALES ROSE 22 TO 6313 MILLION WHILE OPERATING PROFIT THERE WAS UP 32 TO 158 MILLION 9309170002 930917 MARKETING GOALS BY DINT OF PROMOTION JAPANESE ENTREPRENEUR IGNITES A SOCCER FRENZY MR KAWABUCHI CAJOLES FIRMS AND CITIES FOR BACKING KICKING SHINS AS NEEDED IS JLEAGUE MORE THAN A FAD BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A FORMER OLYMPIC PLAYER FOR JAPAN SABURO KAWABUCHI SURVEYED MAJORLEAGUE SOCCER IN HIS COUNTRY AND SAW THE OBVIOUS IT WAS ANEMIC IT WAS DECLASSE IT DREW ONLY 1000 STALWART FANS PER GAME AND IT DIDN'T HAVE A PRAYER AGAINST BASEBALL MR KAWABUCHI HAD A SIMPLE THOUGHT IF YOU MARKET IT THEY WILL COME AND THEY WILL BRING THEIR WALLETS WITH THEM TODAY FOUR MONTHS AFTER HE KICKED OFF A NEW LEAGUE MR KAWABUCHI SEES JAPAN'S SOCCER STADIUMS CRAMMED WITH CHEERING FANS UP TO 60000 A GAME THEY PAINT THEIR FACES IN TEAM COLORS AND DANCE WILDLY TO SAMBA MUSIC AND THEY SHELL OUT BIGTIME FOR TICKETS AND TEAM PARAPHERNALIA ONE MARKETRESEARCH GROUP ESTIMATES THAT INCLUDING THE SALE OF BROADCAST RIGHTS JAPAN'S NEW 10TEAM SOCCER LEAGUE WILL BRING IN A STUNNING 1 BILLION IN REVENUES DURING ITS FIRST YEAR ON THE FIELD EVERYTHING TOOK OFF IN AN UPWARD SPIRAL SAYS THE 56YEAROLD MR KAWABUCHI CHAIRMAN OF JAPAN'S PROFESSIONAL FOOTBALL LEAGUE CALLED JLEAGUE I NEVER IMAGINED SOCCER WOULD BECOME SO POPULAR POPULAR MR KAWABUCHI HAS MADE J LEAGUE PART OF JAPANESE LIFE AVERAGE ATTENDANCE AT GAMES TOPS 18000 AND SOCCER THEME SONGS BLARE FROM RADIOS ON THE SIDEWALKS IN TOKYO THE J LEAGUE LOGO IS OMNIPRESENT ON ICE CREAM ON PENCILS ON CAPS THE SPORT EVEN HAS PENETRATED JAPAN'S TRADITIONAL ARTS AT ONE KABUKI DANCE PERFORMANCE IN TOKYO RECENTLY KIMONOCLAD ACTORS PAID HOMAGE TO THE NEW RAGE BY KICKING A SOCCER BALL AROUND ON STAGE TO THE DELIGHT OF THE AUDIENCE MR KAWABUCHI'S MARKETING MARVEL OFFERS LESSONS ABOUT DOING BUSINESS IN JAPAN AMONG THEM THE COUNTRY IS NOT BEREFT OF ENTREPRENEURS AND A GOOD IDEA CAN BREAK FREE OF THE CORPORATE MONOLITH ONCE A METAL PRODUCTS SALESMAN MR KAWABUCHI TALKED JAPAN'S INDUSTRIAL TITANS INTO CREATING HIS MARKETING JUGGERNAUT JLEAGUE'S TREMENDOUS SUCCESS ALSO REVEALS A SIMPLE TRUTH JAPAN IS A COUNTRY GIVEN TO PACK CONSUMERISM WHERE THE INNOVATIVE MERCHANT WHO CREATES A TREND OR FAD AND SUSTAINS IT IS HANDSOMELY REWARDED AS CHAIRMAN OF THE JLEAGUE MR KAWABUCHI DRAWS A SALARY BUT THE LEAGUE WON'T DIVULGE DETAILS OF HIS COMPENSATION AS THE LEAGUE'S CREATOR MR KAWABUCHI HAS HIT A MERCHANDISING JACKPOT EVEN THOUGH JAPAN IS MIRED IN ONE OF THE WORST RECESSIONS IN ITS POSTWAR HISTORY IT'S LIKE A MARKETING EXERCISE THAT SOMEBODY DREAMED UP AND THAT DREAM CAME TRUE SAYS TERRENCE OLIVER HEAD OF THE JAPANESE UNIT OF INTERBRAND GROUP PLC A MARKETING COMPANY FIVE YEARS AGO WHEN MR KAWABUCHI FIRST BEGAN TALKING ABOUT A PROFESSIONAL SOCCER LEAGUE MOST PEOPLE THOUGHT THE IDEA RIDICULOUS BASEBALL AND SUMO WRESTLING ARE THE NATION'S FAVORITE SPORTS THE JAPAN FOOTBALL LEAGUE OF COMPANYOWNED AMATEUR SOCCER TEAMS WAS SO FEEBLE THAT PLAYERS ALWAYS WENT DOWN TO CRUSHING DEFEATS AGAINST FOREIGN SQUADS BUT MR KAWABUCHI DIDN'T CARE HE ACTS LIKE A CENTER FORWARD SAYS KAZUKI SASAKI A J LEAGUE OFFICIAL AND A CLOSE FRIEND HE RUSHES STRAIGHT FOR THE GOAL REGARDLESS OF WHOSE SHINS HE KICKS ON HIS WAY HE CALLED ON THE CORE OF JAPAN'S CORPORATE ELITE NISSAN MOTOR CO MATSUSHITA ELECTRIC INDUSTRIAL CO AND TOYOTA MOTOR CORP AMONG OTHERS FERVENTLY DESCRIBING HIS VISION OF 10 NEW TEAMS SUPPLANTING THE OLD 12TEAM LEAGUE JAPAN WOULD SOON BE A WORLDCLASS SOCCER CONTENDER ON ITS WAY TO VICTORY AT THE WORLD CUP GAMES HE INSISTED MISS OUT ON THIS WAVE HE TOLD HIS POTENTIAL SPONSORS AND YOU WILL KICK YOURSELVES FOR THE REST OF YOUR LIVES THE COMPANIES GOT THE MESSAGE WALLOWING IN PROFITS FROM THE BOOMING 1980S AND EAGER TO FIND NEW MARKETING AND ADVERTISING MEDIA MORE THAN 100 COMPANIES DECIDED TO BACK JLEAGUE MR KAWABUCHI IS ONE AMBITIOUS ENTREPRENEUR NOTHING LIKE THE CAUTIOUS CORPORATE TYPES WE WERE USED TO SAYS KUNIAKI SASAKI MANAGER OF NISSAN FOOTBALL CLUB THE SPONSORS SPENT MILLIONS OF YEN EACH TO FINANCE NEW TEAMS BUILD NEW STADIUMS AND REFURBISH OLD ONES THROUGHOUT JAPAN MR KAWABUCHI PITCHED HIS PROJECT TO LOCAL GOVERNMENTS THE CITY COUNCIL OF KASHIMA CITY A HUMDRUM INDUSTRIAL TOWN IN THE NORTH OF TOKYO GOT SO EXCITED ABOUT GETTING A HOME TEAM THAT IT SPENT A CHUNK OF CITY TAX DOLLARS ON BACKING THE LEAGUE HIS FINANCIAL SUPPORT IN THE CAN MR KAWABUCHI SET OUT TO CREATE WHAT MIGHT BE CALLED A MARKETING CRITICAL MASS LIGHT ENOUGH SMALL FIRES OF EXCITEMENT AND MERCHANDISING HE FIGURED AND IT IS BOUND TO KINDLE A BLAZE THE SPORT HAD TO BE MADE HIP SEXY GLAMOROUS IT HAD TO APPEAL TO JAPANESE IN THEIR TEENS AND 20S THE NATION'S CONSUMPTION TRENDSETTERS AND THE J LEAGUE SALES PITCH HAD TO BE ORGANIZED AS CONCENTRATED AND INTENSE AS A LASER BEAM THE LEAGUE'S CORPORATE SPONSORS WENT SHOPPING ABROAD TO FIND TALENT IN BRAZIL ARGENTINA AND GERMANY TO ENLIVEN THEIR TEAMS AND ADD ALLURE AND MR KAWABUCHI REWROTE THE RULES FOR J LEAGUE PLAY NO MORE BORING TIEGAMES SCORES WOULD GET SETTLED IN SUDDENDEATH OVERTIME HE HIRED DESIGN STUDIO SONY CREATIVE PRODUCTS INC AN AFFILIATE OF SONY CORP TO MARKET HIS ENTERPRISE AS A LEAGUE RATHER THAN A COLLECTION OF INDIVIDUAL TEAMS THE LEAGUE DEVELOPED A LINE OF CUTE WIDEEYED MASCOTS FOR EACH TEAM A BEAR FOR ONE A BIRD FOR ANOTHER AND SO ON A SINGLE SPORTSWEAR MAKER MIZUNO CORP DESIGNED ALL UNIFORMS CHOOSING TEAM COLORS THAT CONTRAST NICELY ON THE FIELD EVEN IF FANS CAN'T TELL ONE TEAM FROM ANOTHER THEY CAN RECOGNIZE THE OMNIPRESENT LEAGUE LOGO A BIG BLACK J WITH A RED AND WHITE CIRCLE IN THE MIDDLE NEXT HE TURNED UP THE PRESEASON HYPE LAST OCTOBER A FULL SEVEN MONTHS BEFORE KICKOFF SONY CREATIVE STARTED HAWKING TEAM FLAGS AND COLORFUL MEGAPHONES IN MORE THAN 100 J LEAGUE SHOPS IT OPENED NATIONWIDE MIZUNO OPENED STORES STOCKED WITH SOCCER SHOES AND REPRODUCTIONS OF J LEAGUE UNIFORMS HAWKERS STOOD ON STREET CORNERS PITCHING PRODUCTS AS A TEASE TO THE COMING SOCCER SEASON WE WANTED TO SHOW PEOPLE WE HAD EVERYTHING FOR THEM SAYS NOBUYUKI KOMAI AN ADVERTISING MANAGER FOR SONY CREATIVE EVERYTHING INDEED SONY CREATIVE SELLS 210 J LEAGUE ITEMS INCLUDING WATCHES TOWELS AND TEAM BANNERS THE COMPANY EXPECTS TO BRING IN ABOUT 140 MILLION FROM J LEAGUE SALES IN THE FISCAL YEAR ENDING NEXT MARCH 31 MERCHANTS WHO WEREN'T PART OF THE FIRST WAVE QUICKLY CAUGHT ON TO THE SIGNS OF TSUNAMI CALBEE FOODS CO BEGAN STOCKING STORE SHELVES WITH JLEAGUEBRAND POTATO CHIPS SUNTORY LTD ADVISED CUSTOMERS TO START LEARNING THE NAMES OF THE DIFFERENT TEAMS BEFORE THE GAMES AND WHAT BETTER WAY TO DO THAT THAN TO BUY SUNTORY BEER WHICH PICTURES TEAM MASCOTS ON CANS AND THEN THERE WAS SEX WHICH OF COURSE DOES SELL AS THE TEAMS BEGAN TO FORM ADVERTISERS WENT AFTER TEENAGE WOMEN CUSTOMERS BY SHOWING OFF HUNKY PLAYERS IN TV COMMERCIALS AND PRINT ADS HERE WAS ONE SLURPING A CUP OF NOODLES THERE WAS ANOTHER PITCHING COLD MEDICINE NEW SOCCER MAGAZINES PROFILED THE HEARTTHROBS CHRONICLING THEIR HEIGHT HOBBIES AND BLOOD TYPE VIEWED BY JAPANESE MUCH LIKE ZODIAC BIRTH SIGNS THE MEDIA PICKED UP THE RISING FRENZY SURPRISE FOREIGN PLAYERS ARE USING CHOPSTICKS MARVELED ONE TV SHOW MAGAZINES GUSHED OVER JAPANESE J LEAGUE PLAYERS' FRIZZY PERMS PONYTAILS AND EVEN PIERCED EARS FASHIONS THAT ARE WAY OUT OF THE MAINSTREAM AND VIEWED AS QUITE SEXY I REALLY HAVE NO INTEREST IN SOCCER SAYS MIE AOYAMA A 29YEAROLD BASEBALL FAN BUT I KNOW ALL THE FAMOUS PLAYERS' NAMES MR KAWABUCHI'S MARKETING BLAZE WAS ROARING AND NOT A SINGLE GAME HAD YET BEEN PLAYED TIME TO STOKE THE FIRE ALL THE MORE HE FIGURED SO THIS SPRING J LEAGUE ADOPTED A THEME SONG OLE OLE WE ARE THE CHAMPS STORES IN TOKYO PLAYED THE TUNE OVER AND OVER IN THE WEEKS LEADING UP TO THE MAY 15 OPENING GAME SOCCER BECAME SUCH A HOT TOPIC THAT PEOPLE THOUGHT THEY JUST COULDN'T GET LEFT BEHIND SAYS KENJI KINOSHITA A MANAGER AT HAKUHODO INC AN AD AGENCY THAT PROMOTES THE LEAGUE TV SPECTACLE THE AUDACITY OF IT ALL HIT HOME WHEN THE TIME CAME FOR MR KAWABUCHI TO NEGOTIATE BROADCAST RIGHTS IN THE OLD DAYS TELEVISION NETWORKS PAID A MERE 300000 YEN TO AIR A SOCCER GAME MR KAWABUCHI NOW WANTED AND GOT 10 MILLION YEN PER MATCH THE DEAL MADE HEADLINES WITH ALL THIS COVERAGE ANYONE WOULD WANT TO SEE WHAT THE FIRST MATCH WOULD BE LIKE OBSERVED MR KAWABUCHI OF THE AUDIENCE HE EXPECTED TO DELIVER ON OPENING DAY BUT JUST IN CASE THE TELEVISED SPECTACLE NEEDED A BOOST MR KAWABUCHI SAYS HE PREPARED RECORDINGS OF WILD CHEERING TO PIPE INTO THE STADIUM NO NEED WHEN THE WHISTLE BLEW ON MAY 15 SOME 60000 SPECTATORS AT THE TOKYO DOME STADIUM AND MILLIONS MORE WATCHING TELEVISION OOHED AND AAHED AS PLAY GOT UNDER WAY A GROUP OF FANATIC FANS COVERED THEIR FACES IN MULTICOLORED PAINT BLEW HORNS AND DANCED IN UNISON THE ENSUING MEDIA BLITZ FEATURING SCENES LIKE THESE WAS ENOUGH TO HOOK MIYAKO NEMOTO 16 SHE STARTED BUYING TICKETS I WANT TO DANCE TO THE BEAT OF THOSE DRUMS SQUEALS THE TOKYO HIGHSCHOOL STUDENT WATCHING HER FAVORITE TEAM VERDY KAWASAKI PLAY ONE NIGHT HER CHEEKS ARE PAINTED VERDY GREEN AND SHE HAS SPENT MORE THAN 150 ON HER OFFICIAL VERDY TSHIRT FLAG AND HORN SOUVENIRS WITH EAGER FANS LIKE MS NEMOTO HEADING TO THE STADIUMS THE INAUGURAL SEASON IS A SELLOUT SONY CREATIVE RUSHED OUT A NEW PRODUCT 1500YEN TUBES OF WASHABLE GAME PAINT PACKAGED IN TEAM COLORS OTHER MERCHANTS ALSO WENT INTO HIGH GEAR HUNGRY FEAST ON JLEAGUEBRAND CURRY OR CORNFLAKES SHORT OF MONEY A J LEAGUE PLAYER HAWKS A CREDIT CARD A SMILING BOY HEADS A SOCCER BALL TO PROMOTE HEALTHY FERMENTED SOYBEAN PASTE YAMAICHI SECURITIES LTD OPENS A J COUNTER TO SELL STOCKS IN KASHIMA CITY NORTH OF TOKYO RESIDENTS ARE INCREASINGLY OBSESSED WITH A BALDING YOUNG BRAZILIAN IMPORT ALCINDO SARTORI WHO HAS SCORED MANY A GOAL FOR THE KASHIMA ANTLERS LOCAL MERCHANTS SELL COOKIES AND CAKES WITH A BALD PATCH AND A LOCAL BARBER OFFERS TO SHAVE CHILDREN'S HAIR IN THE MIDDLE AS A SIGN OF SOLIDARITY A WIG MAKER PAID MR SARTORI AN ESTIMATED 35 MILLION YEN TO SPORT ONE OF ITS TOUPEES SO MANY EXCITED FANS ARE BLOWING HORNS DURING MATCHES THAT RESIDENTS NEARBY COMPLAIN THEY CAN'T SLEEP SO FASHION MAGAZINES NOW GIVE TIPS ON HOW TO CORRECTLY CHEER ONE FORMER SOCCER PLAYER WONDERS GRUMPILY WHERE ALL THESE FANS CAME FROM NO ONE HE SAYS SEEMS TO CARE ABOUT THE ACCURACY OF THE PASSES OR THE COMPLEX FORMATIONS THAT LEAD TO A GOAL THEY SCREAM AND CHEER AS SOON AS SOMEONE THEY LIKE TOUCHES THE BALL HE SAYS THAT OF COURSE IS MUSIC TO MR KAWABUCHI'S EARS AS J LEAGUE PLAY CONTINUES TO THE FINAL MATCHES IN EARLY JANUARY BUT CAN SOCCER STAY HOT IN FADMINDED JAPAN WHERE PENDULUM SWINGS OFTEN KILL OFF RAGES AS FAST AS THEY WERE CREATED SOME MARKETERS SAY JAPAN WILL HAVE TO QUALIFY FOR PLAY IN THE WORLD CUP GAMES FOR SPECTATOR INTEREST TO STAY HIGH ONE ENCOURAGING EARLY SIGN JAPAN'S NATIONAL TEAM MADE UP OF J LEAGUE MEMBERS IS ALREADY SCORING STRONGLY AGAINST OTHER TEAMS ABROAD MR KAWABUCHI MEANWHILE IS KEEPING HIS EYE ON THE BALL PROWLING THE SOCCER FIELD AND TALKING PASSIONATELY ABOUT SATISFYING THE CUSTOMER SO IT IS THAT THE CUSTOMER CAN NOW DEPOSIT MONEY AT FUJI BANK LTD USING AN OFFICIAL JLEAGUEBRAND PASSBOOK FALL AND WINTER J LEAGUE JACKETS HAVE JUST HIT STORE SHELVES THE JCLUB A NEW BAR IN TOKYO OFFERS COCKTAILS IN TEAM COLORS THE HOT ITEM ON THE MENU THE JBALL A BOILED POTATO SPRINKLED WITH SEAWEED TO LOOK LIKE A SOCCER BALL ENOUGH ALREADY NOT FOR MR KAWABUCHI WE'VE GOT A LONG WAY TO GO HE DECLARES 9309170001 930917 HILTON AND TAIWANESE ARE SAID TO BUY WAIKOLOA ON HAWAII AT BARGAIN PRICE BY PAULINE YOSHIHASHI AND JIM CARLTON STAFF REPORTERS OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF HILTON HOTELS CORP AND A GROUP INCLUDING UNIDENTIFIED TAIWANESE INVESTORS HAVE AGREED TO BUY THE HYATT REGENCY WAIKOLOA FOR ABOUT A QUARTER OF THE FLASHY HAWAIIAN RESORT'S 360 MILLION CONSTRUCTION COST PEOPLE FAMILIAR WITH THE TRANSACTION SAID HILTON A HOTEL AND CASINO OPERATOR HAS AGREED TO TAKE A MINORITY STAKE AND TO MANAGE THE PROPERTY LOCATED ON THE BIG ISLAND OF HAWAII THE PROPERTY HAD BEEN ON THE MARKET FOR SOME TIME AND HILTON WAS SAID TO HAVE NEGOTIATED FOR SEVERAL MONTHS WITH A SYNDICATE LED BY MITSUBISHI BANK THE HOTEL WAS OWNED BY A PARTNERSHIP THAT INCLUDED HYATT CORP THE BASS BROTHERS A JAPANESE INVESTOR AND THE HOTEL'S DEVELOPER THE TRANSACTION PRICE IS SAID TO BE IN THE NEIGHBORHOOD OF ABOUT 60 MILLION AND INCLUDES AN ADDITIONAL CAPITAL COMMITMENT OF AT LEAST 30 MILLION PEOPLE FAMILIAR WITH THE SALE SAID BUILT BY HEMMETER THE 1244ROOM RESORT OPENED AT THE HEIGHT OF THE HAWAIIAN RESORT DEVELOPMENT BOOM IN 1988 IS ONE OF THE FANTASY PROPERTIES BUILT BY DEVELOPER CHRISTOPHER HEMMETER THE WAIKOLOA BOASTS A MONORAIL AND SMALL BOATS TO TRANSPORT GUESTS ABOUT THE 60ACRE PROPERTY AS WELL AS A DOLPHIN POOL WHERE GUESTS CAN SWIM WITH THE MAMMALS BUT THE SPRAWLING PROPERTY IS EXTREMELY EXPENSIVE TO OPERATE AND HAS SUFFERED ALONG WITH THE REST OF THE HAWAIIAN MARKET FROM A SHARP DECLINE IN TOURISM A HILTON SPOKESMAN SAID HE COULD NEITHER CONFIRM NOR DENY THE TRANSACTION HILTON OWNS A 50 INTEREST IN THE 2540ROOM HILTON HAWAIIAN VILLAGE AND MANAGES OTHER RESORTS ON KONA AND OAHU THE SALE MARKS A STEEP DISCOUNT FROM THE WAIKOLOA'S ESTIMATED 400 MILLION IN CONSTRUCTION AND INTEREST CARRYING COSTS THE FACT THAT IT IS BEING SOLD TO A NONJAPANESE ENTITY ALSO APPEARS TO PUNCTURE THE JAPANESE ARGUMENT AT THE TIME OF THEIR 1980S BUYING BINGE IN THE US THAT THEIR EXORBITANT PRICES WERE JUSTIFIED BECAUSE THEY WERE WILLING TO AWAIT LONGTERM RETURNS BIG PROJECTS SUCH AS THE WAIKOLOA NEVER WERE ABLE TO TURN A PROFIT BECAUSE DEBT LOAD WAS SKYHIGH WHILE AT THE SAME TIME OCCUPANCIES SAGGED FROM THE COMBINATION OF TOO MANY RESORT HOTELS AND A DISASTROUS SWOON IN HAWAIIAN TOURISM THE NUMBER OF VISITORS TO HAWAII HAS DROPPED THE THREE PAST YEARS AFTER HITTING A 1990 PEAK OF 69 MILLION BECAUSE RECESSION HAS RAVAGED THE ISLAND STATE'S TWO BIGGEST SOURCES OF TOURISM JAPAN AND CALIFORNIA THIS HAS LEFT THE WAIKOLOA'S PERCENTAGE RATE OF OCCUPANCY STUCK IN THE THE 50S AND 60S SAID ERNEST A WATARI MANAGING DIRECTOR OF THE HONOLULU OFFICE OF PANNELL KERR FORSTER INTERNATIONAL BECAUSE A HAWAIIAN HOTEL NEEDS TO MAINTAIN ABOUT 70 OCCUPANCY JUST TO BREAK EVEN ON OPERATING COSTS MR WATARI SAID THE WAIKOLOA HAS INCURRED LOSSES WITHOUT EVEN COUNTING DEBT LOAD WITH JAPANESE BANKS INCREASINGLY RETICENT TO HOLD ONTO DISTRESSED PROPERTIES HE SAID HE ANTICPATES THEY WILL LOOK TO UNLOAD MORE US PROPERTIES VERY SOON ALREADY HE SAID THERE ARE ALL KINDS OF OFFERS COMING OUT OF THE WOODWORK TO GET OUT OF PROPERTIES FOR 20 CENTS TO 30 CENTS ON THE DOLLAR MOST EXPERTS SAY HAWAII EVENTUALLY WILL RECLAIM ITS TITLE AS A HOT TRAVEL DESTINATION PAUL DEMYER NATIONAL DIRECTOR OF HOSPITALITY CONSULTING FOR KENNETH LEVENTHAL & CO SAID THE HOTEL MARKET IN HAWAII REPORTED OCCUPANCIES OF 68 AND AVERAGE ROOM RATES OF 140 IN 1992 MARKING A FOURTH STRAIGHT YEAR OF OCCUPANCY DECLINES EVEN SO HE SAID WE EXPECT THAT THE MARKET WILL BOTTOM OUT IN 1993 AND WE EXPECT IMPROVEMENT THEREAFTER MR HEMMETER AND HYATT EXECUTIVES COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY 9309170127 930823 MARKETING & MEDIA ADVERTISING SEXY SONY AD BY LEO BURNETT HAS ELECTRONIC BULLETIN BOARD AFLAME BY KEVIN GOLDMAN A GROUP OF WOMEN WHO COMMUNICATE VIA A NATIONWIDE COMPUTER NETWORK IS PROTESTING A COMMERCIAL HIGHLIGHTING SONY'S PORTABLE MINIDISC PLAYER CHARGING THE SPOT IS PLAYING AN ALL TOO FAMILIAR SEXIST TUNE THE ADVERTISEMENT SEEN MAINLY ON CABLE NETWORKS MTV AND ALLSPORTS ESPN SHOWS AN EMOTIONLESS STUD CLAD IN A TIGHTFITTING TSHIRT AND DRAPED IN VARIOUS POSITIONS ON HIS WHITE 1958 CHEVROLET IMPALA CONVERTIBLE HE PUNCHES A BUTTON ON THE MINIDISC WHICH IS PROGRAMMED TO DISPLAY THE NAMES LISA JENNIE DONNA KATE AND ANNIE AS HE PUNCHES EACH SELECTION THE TUNE CHANGES FROM ONE SONY MUSIC ARTIST TO ANOTHER THIS IS AFTER ALL SYNERGY AND A NEW LEGGY LADY SHOWS UP WITH A COMEHITHER LOOK THE VERY LAST WOMAN IN FACT IS CLAD IN WHAT APPEARS TO BE A REVEALING WHITE BIKINI TOP SONY SAYS IT IS A HALTER TOP THE FINAL SHOT SHOWS ALL THE WOMEN SITTING IN OR LYING ACROSS THE CAR WITH A SLOGAN THAT REALLY MIFFS THE ONLINE FEMINISTS IF YOU PLAY IT THEY WILL COME THE WOMEN PROTESTING THE 30SECOND SPOT ARE GREATLY OFFENDED BY WHAT THEY SAY IS BLATANT OBJECTIFICATION OF THE WOMEN AS AUTOMATONS THAT CAN BE ORDERED UP WITH PUSHBUTTON EASE NOT TO MENTION THE RATHER OBVIOUS DOUBLEENTENDRE ONE SONG USED IN THE SONY SPOT ALYSON WILLIAMS'S SO SPECIAL EVEN BECKONS JUST THINK OF ME AND I'LL RUN TO YOU I WAS DISGUSTED SAYS LAURA DOWNEY A COMPUTER SCIENTIST FOR THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY A BRANCH OF THE US DEPARTMENT OF COMMERCE SHE WAS WATCHING MTV WITH HER 14YEAROLD SON WHEN THE SONY AD APPEARED SONY IS SUCH A MAJOR PLAYER IN THE COMPUTER INDUSTRY AND THERE ARE SO MANY SEXIST THINGS THAT GO ON THESE DAYS THIS WAS THE LAST STRAW SEXISM IN ADVERTISING WAS SUPPOSED TO BE ON THE WAY OUT AS THE '90S ARRIVED AND THE NATION'S COLLECTIVE CONSCIOUSNESS HAS GONE THOROUGH TWO DECADES OF RAISING MARKETERS WERE PROUDLY PROCLAIMING THE BANNING OF BIMBOS FROM BEER ADS AMONG THE WORST OFFENDERS YET HOW MUCH HAS REALLY CHANGED BEER ADS CONTINUE TO OFFEND SOME WITH A FEW RELYING ON 1960S RETROHUMOR OF A MAN TRYING TO PICK UP A WOMAN IN A BAR AND OTHERS SHOWING WOMEN STILL PARADING AROUND IN BIKINIS AND THE CALVIN KLEIN FRAGRANCE FRANCHISE UNREPENTANT HAS JUST RELEASED A NEW SERIES OF ADS FEATURING A YOUNG WOMAN'S NAKED FRONT AND REAR SONY DENIES ITS NEW AD IS IN ANY WAY SEXIST BUT ADMITS IT RECEIVED A SMATTERING OF PROTESTS THE COMPANY SAYS IT HAS NO PLANS TO PULL THE SPOT WHICH A SPOKESMAN DESCRIBES IRONICALLY AS NOT PRODUCTORIENTED BUT RATHER IMAGEORIENTED FOR THE ENTIRE SONY BRAND IT IS FROM CHICAGOBASED AD AGENCY LEO BURNETT THE DENIAL DOESN'T SIT WELL WITH MS DOWNEY AFTER CATCHING THE SPOT ON MTV SHE SENT A MEMO THE NEXT DAY VIA COMPUTER ON AN ELECTRONIC BULLETIN BOARD TO THE 1560 MEMBERS OF SYSTERS THE GROUP STARTED IN 1987 FOR WOMEN IN THE FIELD OF COMPUTER OPERATING SYSTEMS RESEARCH AS WELL AS GRADUATE STUDENTS IN THE COMPUTER FIELD MS DOWNEY EMPHASIZES SHE IS TAKING THIS ACTION AS A PRIVATE CITIZEN AFTER DESCRIBING THE COMMERCIAL AND ASKING WHETHER ANYONE ELSE HAD SEEN IT MS DOWNEY CONCLUDED HER COMPUTER ATTACK ON AN OMINOUS NOTE UNTIL I SEE THIS COMMERCIAL IS REMOVED FROM THE AIR REST ASSURED THAT I WILL NOT PURCHASE ANY SONY PRODUCTS AND THAT I WILL URGE OTHERS TO DO THE SAME IT'S IN SUCH POOR TASTE SHE SAYS IN AN INTERVIEW SONY OWES EVERY WOMAN AN APOLOGY FOR THIS AD HER LETTERS AND PHONE MESSAGES TO SONY AT LEAST AS OF LAST FRIDAY HAVE GONE UNANSWERED BUT HER MEMO GOT THE KEYBOARDS CLACKING AT COMPUTERS AROUND THE COUNTRY AMONG SYSTERS MEMBERS SAYS FOUNDER ANITA BORG A CONSULTANT ENGINEER AT DIGITAL EQUIPMENT CORP IT'S A SEXIST COMMERCIAL BY A COMPANY THAT EMPLOYS WOMEN IN THE COMPUTING FIELD SHE SAYS SHE SOUNDS A WARNING AN ELECTRONIC BILLBOARD CAN MOBILIZE A GRASSROOTS MOVEMENT WITHIN HOURS THE COLLECTIVE OUTRAGE COULD BE FOCUSED AT THE PEOPLE AT SONY IN AN INTERVIEW RICHARD JOHNSON DIRECTOR OF ADVERTISING FOR THE CONSUMER PRODUCTS UNIT OF SONY ELECTRONICS SAYS THE COMPANY ROUTINELY RECEIVES COMPLAINTS ABOUT ADS NO MATTER THE PRODUCT A COMMERCIAL FOR SONY'S TRINITRON TELEVISION SET FOR INSTANCE THAT DEPICTED THE GRAND CANYON TRIGGERED A PROTEST FROM SOME CONSUMERS WHO FELT SONY WAS TRYING TO SAY ITS ELECTRONIC REPRODUCTION WAS BETTER THAN THE REAL THING AS FOR THE MINIDISC COMMERCIAL MR JOHNSON SAYS SONY IS CONCERNED OVER ANY NEGATIVE REACTION WE WILL TAKE A MEASURED LOOK HE SAYS AND TRY TO RESPOND TO THOSE PROTESTING MR JOHNSON INSISTS THE WOMEN IN THE AD ARE AS FULLY CLOTHED AS YOU WOULD EXPECT TO FIND IN MIDTOWN MANHATTAN HE CONTINUES THERE IS NO INTENT ON OUR PART TO PROVIDE SECONDARY MEANING FOR THE COMMERCIAL'S TAG LINE THE SPOT WHICH IS SCHEDULED TO RUN THROUGH NEXT MONTH WAS DESIGNED FOR THE CORE AUTOMOBILE STEREO BUYER CONSUMERS 16 TO 24 YEARS OLD BOTH MEN AND WOMEN I WOULDN'T SAY WHETHER IT WOULD APPEAL OR WOULDN'T APPEAL TO WOMEN MR JOHNSON RESPONDS RATHER IT IS MEANT FOR THE SOCALLED HIP MTV AUDIENCE ESPN THE ALLSPORTS NETWORK WHERE THE COMMERCIAL IS ALSO BEING SEEN HAS AN EXTENSIVE MALE AUDIENCE ACCOUNT THE DENVER OFFICE OF WPP GROUP'S J WALTER THOMPSON WON THE REEBOK ATHLETIC GLOVE ACCOUNT BILLINGS FOR THE NEW ACCOUNT COULDN'T BE DETERMINED REEBOK ATHLETIC GLOVE A LICENSEE OF REEBOK INTERNATIONAL LTD IS A UNIT OF CHAMPION GLOVE MFG CO OF DES MOINES IOWA D'ARCY D'ARCY MASIUS BENTON & BOWLES NEW YORK SAID IT BOUGHT A MAJORITY STAKE IN FRESE & WOLFF A GERMAN PROMOTIONS COMPANY WITH ANNUAL BILLINGS OF 50 MILLION WHO'S NEWS VIACOM INTERNATIONAL INC A UNIT OF VIACOM INC NAMED ALFRED J NILSON VICE PRESIDENT MARKETING A NEW POSITION AT VIACOM NEW MEDIA A RECENTLY FORMED UNIT FOR DEVELOPING AND LICENSING INTERACTIVE SOFTWARE MR NILSON AGE 35 HAD BEEN GROUP DIRECTOR GLOBAL MARKETING AT SEGA OF AMERICA A UNIT OF SEGA ENTERPRISES LTD ALFRED J NILSON WHO WAS RECENTLY NAMED VICE PRESIDENT MARKETING AT VIACOM INC'S VIACOM NEW MEDIA UNIT IS 36 YEARS OLD BASED ON INFORMATION SUPPLIED BY THE COMPANY AN ITEM IN MONDAY'S ADVERTISING COLUMN INCORRECTLY STATED HIS AGE AS 35 SEE RELATED LETTERS LETTERS TO THE EDITOR WHY GET IN A FLAP OVER SEXY ADS WSJ SEPT 17 1993 9308230003 YY93 MM09 9309170065 930817 THE LAWYERLESS MORE PEOPLE REPRESENT THEMSELVES IN COURT BUT IS JUSTICE SERVED ATTORNEYS GET TOO EXPENSIVE IN MANY FAMILY CASES SELFHELPERS CLOG SYSTEM THE ARNIE BECKER SYNDROME BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL DRESSED IN A WHITE TSHIRT AND FLOUNCY MINISKIRT SUSAN MCHUGOINOUYE LOOKS FLUSTERED AS SHE RISES TO SPEAK SHE HESITATES AND LOOKS AROUND FOR HELP LIKE A JUNIOR HIGHSCHOOL STUDENT GIVING HER FIRST ORAL REPORT BUT THIS IS NO CLASSROOM IT IS A COURTROOM AND THE SCENE OF A BITTER CHILDCUSTODY DISPUTE ALTHOUGH MRS MCHUGOINOUYE APPEARS TO GAIN CONFIDENCE PART WAY THROUGH HER PRESENTATION HER ARGUMENT SEEMS DISTURBINGLY DISORGANIZED AND SHORT ON LEGAL REASONING ESPECIALLY COMPARED WITH THAT OF HER OPPOSING COUNSEL WHEN HE INTERRUPTS HER TO OBJECT SHE CLEARLY IS THROWN OFF BALANCE HE SUMMARIZES THE CASE IN A MEMORANDUM TO THE JUDGE SHE DOES NOT TWO WEEKS LATER THE JUDGE ISSUES HIS DECISION SHE LOSES THEY ARE THE LAWYERLESS AND MORE AND MORE OF THEM ARE DEMONSTRATING THEIR LIMITED SKILLS NOT TO MENTION THEIR CASUAL DRESS IN COURTROOMS ACROSS THE COUNTRY ESPECIALLY IN FAMILY COURT THE NUMBERS ARE EXPLODING IN DES MOINES IOWA 53 OF ALL SUCH CASES FEATURE LITIGANTS REPRESENTING THEMSELVES IN WASHINGTON DC THE FIGURE IS 88 AS THESE HORDES OF NONLAWYERS STUMBLE ALONG THEY CLOG SYSTEMS THAT AREN'T DESIGNED TO ACCOMMODATE AMATEURS CREATING A HOST OF NEW CHALLENGES FOR COURT ADMINISTRATORS THE LAWYERLESS OFTEN AREN'T FLYING SOLO BY CHOICE A FAMILY LAWYER OFTEN CAN COLLECT 10000 FOR A COMPLEX CASE A HEFTY CHUNK OF IT UP FRONT AND NONREFUNDABLE AFTER THE ECONOMY BEGAN TO SLOW FIVE YEARS AGO THE PERCENTAGE OF NONLAWYERS IN SUCH CASES BEGAN INCREASING SHARPLY MEANWHILE DIVORCE RATES REMAIN HIGH LAWYERS HAVEN'T LOWERED THEIR FEES TO LURE BACK THE LOST BUSINESS EITHER PLENTY OF HIGHERINCOME PEOPLE STILL ARE GETTING DIVORCED AND PAYING HOURLY RATES OF 100 AND HIGHER LAWYERS HAVE PRICED THEMSELVES OUT OF THE MIDDLECLASS MARKET SAYS CALIFORNIA SUPERIOR COURT JUDGE RODERIC DUNCAN WHO WROTE A BOOK ON NAVIGATING THE STATE'S MUNICIPAL COURTS WITHOUT AN ATTORNEY THEY'RE NOT INTERESTED IN THAT KIND OF WORK THIS OF COURSE RAISES BROADER QUESTIONS ABOUT OBTAINING JUSTICE A SYSTEM THAT PRESUPPOSES THE EXISTENCE OF TWO REPRESENTED PARTIES IS BREAKING DOWN CONTENDS SARAANN DETERMAN MODERATOR OF A SPARSELY ATTENDED PANEL ON MIDDLECLASS LEGAL SERVICES AT THE RECENT AMERICAN BAR ASSOCIATION CONVENTION THE HEAD OF A LEADING ATTORNEYS' GROUP THE AMERICAN ACADEMY OF MATRIMONIAL LAWYERS IS UNAPOLOGETIC I WISH THIS WERE A WORLD WHERE REALISTICALLY THE POOR COULD HAVE THE SAME JUSTICE AS THE PEOPLE WHO AREN'T POOR BUT THAT'S NOT THE WORLD SAYS ARTHUR E BALBIRER IT'S A SHAME JUSTICE SOMETIMES IS EXPENSIVE IF YOU CAN'T AFFORD TO PAY THERE ARE FEW ALTERNATIVES LEGALAID BUDGETS ARE DRAINED AS IT IS WITH LEGALASSISTANCE GROUPS ROUTINELY TURNING AWAY ALL DIVORCE AND CUSTODY WORK AND PRIVATE LAWYERS DESPITE MUCH PUBLIC HORNBLOWING ABOUT PRO BONO WORK ARE SHOWING NO INCLINATION TO FILL THE VOID MANY ATTORNEYS CONSIDER FAMILY LAW EMOTIONALLY DRAINING AND EXCESSIVELY TIMECONSUMING IN CASES OF SERIOUS INJURY POOR CLIENTS CAN GET A LAWYER BY GIVING HIM OR HER A PERCENTAGE OF AN ULTIMATE DAMAGE AWARD BUT SUCH FEES AREN'T PERMITTED IN FAMILYLAW CASES SO FEW VOLUNTEERS STEP FORWARD SAYS MR BALBIRER IT'S LIKE ASKING A CORPORATE EXECUTIVE WHY DON'T YOU FOR TWO MONTHS GIVE YOUR SALARY TO THE HOMELESS' NOT TO BE A WISE GUY BUT IF WE'RE GOING TO SAY THAT WE SHOULD APPLY THAT STANDARD DOWN THE LINE ANOTHER REASON SOME LITIGANTS SHUN LAWYERS MIGHT BE CALLED THE ARNIE BECKER SYNDROME AFTER THE UNCTUOUS ATTORNEY IN TV'S LA LAW MANY ARE LEERY OF SLIPPERY DIVORCE LAWYERS WITH SOME JUSTIFICATION A 1992 STUDY BY THE NEW YORK STATE DEPARTMENT OF CONSUMER AFFAIRS FOUND A PATTERN OF CERTAIN DIVORCE LAWYERS LITIGATING EXCESSIVELY JUST TO RATCHET UP FEES OTHERS UNSCRUPULOUSLY DEMANDED HUGE PAYMENTS ON THE BRINK OF TRIAL STILL OTHERS OVERCHARGED THEN ABANDONED CLIENTS WHEN THE MONEY RAN OUT ACCORDING TO THE REPORT ACTING ON THE STUDY THE NEW YORK COURT SYSTEM YESTERDAY ADDED SEVERAL NEW FAMILY LAW REGULATIONS NEVERTHELESS FOR SOME LIKE MRS MCHUGOINOUYE THE EXPERIENCE OF GOING WITHOUT A LAWYER IS NIGHTMARISH AN UNEMPLOYED TEACHER OF ENGLISH AS A SECOND LANGUAGE MRS MCHUGOINOUYE SAYS SHE COULDN'T AFFORD A LAWYER TO FIGHT HER EXHUSBAND'S DEMAND FOR CUSTODY OF THEIR TWIN DAUGHTERS I COULD HAVE BORROWED FROM MY PARENTS BUT I DIDN'T WANT TO SHE SAYS THEY HAD ALREADY LENT HER MONEY DURING A PREVIOUS CUSTODY BATTLE WITH HER EXHUSBAND THIS WAS EITHER THE FOURTH OR FIFTH DISPUTE FOR THE COUPLE THE PARENTS CAN'T EVEN AGREE ON THAT THE GIRLS 12 YEARS OLD AT THE TIME HAD LIVED TEMPORARILY WITH THEIR FATHER FOR ALMOST A YEAR HE WANTED PERMANENT CUSTODY AND HAD RETAINED AN ATTORNEY TO GET IT THE SHOWDOWN TOOK PLACE AT THE FAMILY COURT FIFTH CIRCUIT IN KAUAI HAWAII FROM THE MOMENT SHE FILED PAPERS STATING THAT SHE NO LONGER HAD A LAWYER MRS MCHUGOINOUYE SAYS SHE KNEW SHE WAS IN TROUBLE SHE SAYS A COURT CLERK MADE HER RETYPE THE ENTIRE FORM BECAUSE INSTEAD OF USING THE WORDS PRO SE SHE HAD USED PRO PER AN EQUIVALENT LATIN PHRASE USED IN MANY STATES TO DESCRIBE SOMEONE REPRESENTING HERSELF THEY WILL HAND YOU A FORM AND SAY NOTHING MRS MCHUGOINOUYE SAYS IF YOU ASK FOR ASSISTANCE IT'S LIKE IT'S REALLY REALLY TROUBLESOME THE KAUAI COURT ADMINISTRATOR SAYS HE DOUBTS THIS OCCURRED IN ANY CASE MANY SELFREPRESENTED LITIGANTS CAN RECOUNT SIMILAR EXPERIENCES IN PART THAT IS BECAUSE COURTS ARE SO UNDERFUNDED AND OVERLOADED THAT IT IS A GENUINE STRAIN TO GIVE SELFHELP LITIGANTS THE EXTRA ATTENTION THEY NEED AND MANY OF THE LAWYERLESS TEST THE COURT'S PATIENCE THEY TURN IN BRIEFS SCRAWLED IN LONGHAND PRESENT ARGUMENTS HYSTERICALLY AND DISPLAY UNREALISTIC EXPECTATIONS ABOUT JUST HOW MUCH THE SYSTEM CAN DO FOR THEM MRS MCHUGOINOUYE FOR INSTANCE WAS DISAPPOINTED THAT COURT STAFF WOULDN'T LET HER BORROW A TYPEWRITER TO RETYPE FILINGS EVEN IF THEY WANT TO HELP COURT EMPLOYEES JUDGES AND ATTORNEYS ARE HAMSTRUNG BY ETHICS CODES THAT REQUIRE THE COURT TO REMAIN NEUTRAL AND REFRAIN FROM COACHING OR HELPING ANY PARTY IT CAN BE PAINFUL FOR WORKERS AND JUDGES TO SEE LITIGANTS ADRIFT LOSING OUT ON OPPORTUNITIES THEY KNOW NOTHING ABOUT BUT IT IS ALSO IMPROPER FOR JUDGES TO GIVE A BREAK TO AN UNREPRESENTED LITIGANT JUST BECAUSE HE OR SHE DOESN'T KNOW THE LAW YOU CAN'T SAY I'M GOING TO WEIGH THIS PERSON'S ARGUMENT 60 BECAUSE THEY'RE UNREPRESENTED AND I'LL WEIGH THE ATTORNEY'S ARGUMENT 40' SAYS JUDGE CLIFFORD L NAKEA WHO PRESIDED OVER MRS MCHUGOINOUYE'S CASE MRS MCHUGOINOUYE'S BIGGEST MISTAKE WAS A WHOPPER ON THE DAY OF FINAL ARGUMENTS SHE HAD BEEN UNDER THE IMPRESSION THAT JUDGE NAKEA WOULD SIMPLY INTERVIEW HER DAUGHTERS ON THE DAY OF THE COURT SESSION AND ANNOUNCE HIS RULING LATER INSTEAD THE JUDGE FINISHED INTERVIEWING THE GIRLS ENTERED THE COURTROOM AND ASKED MRS MCHUGOINOUYE AND THE OPPOSING ATTORNEY TO BEGIN FINAL ARGUMENTS JUDGE NAKEA EXPLAINED THAT ALL SIDES HAD AGREED ON SUCH A TRIAL DURING AN EARLIER CONFERENCE SOMEHOW MRS MCHUGOINOUYE DIDN'T GET THE MESSAGE SMALL WONDER SHE SEEMED UNPREPARED AND DISTRACTED DURING HER SEVENMINUTE ARGUMENT IF YOU DON'T KNOW WHAT THE PROCEDURES ARE IN THE COURT SYSTEM YOU GET KILLED SAYS BARBARA E HANDSCHU FORMER HEAD OF THE NEW YORK STATE BAR'S FAMILYLAW SECTION YOU GET ALL SORTS OF COMPLICATIONS THAT LAY PEOPLE MAY NOT REALIZE IN DIVORCE CASES FOR INSTANCE THE TAX AND INSURANCE RAMIFICATIONS OF SPLITTING UP CAN GET EXTREMELY ARCANE SHE FELT CONFIDENT SHE COULD DO SO BECAUSE SHE HAS A MASTER'S DEGREE ALBEIT IN ART EDUCATION AND ENJOYS RESEARCH MS CROSBY CONTACTED A GROUP OF LEGALREFORM ACTIVISTS FOR TACTICAL ADVICE SHE DISCOVERED A FREE LAW LIBRARY AT THE LOCAL COURTHOUSE BY THE TIME A MAJOR HEARING ROLLED AROUND IN JUNE SHE WAS COMFORTABLE CITING PRECEDENTS AND OBJECTING TO IRRELEVANT TESTIMONY I'VE LEARNED A LOT SHE SAYS BY TRADITIONAL LEGAL STANDARDS SHE HAS MADE SOME MISTAKES SHE WASTED A LOT OF TIME WRITING UP A SUBPOENA THAT SHE NEVER SERVED SHE LOST A BATTLE TO AVOID PAYING HER HUSBAND'S LEGAL COSTS AFTER HE WON AN APPEAL THAT SHE HAD INITIATED BUT SHE HAS ALSO ARGUED CALMLY BEFORE HEARING EXAMINERS AND FENDED OFF HER EXHUSBAND'S EFFORTS TO GET MORE VISITING TIME WITH THE CHILDREN ALSO IN A FAIRLY DIFFICULT MANEUVER SHE MANAGED TO GET A NEW LAW GUARDIAN APPOINTED FOR THEM WOULD SHE HIRE AN ATTORNEY NOW IF SHE HAD THE MONEY LAUGHING SHE SAYS I'VE BEEN BURNED SO SERIOUSLY IT'S LIKE ASKING ME IF I WOULD EVER REMARRY IT WOULD HAVE TO BE AN INCREDIBLE ATTORNEY WITH AN INCREDIBLE BACKGROUND DESPITE MS CROSBY'S EXPERIENCE MOST LEGAL EXPERTS AGREE THAT PEOPLE WHO MARCH INTO COURT WITHOUT LAWYERS ARE AT A DISADVANTAGE AND ONE THAT IS LIKELY TO BECOME A FIXTURE OF THE NEW LEGAL ENVIRONMENT ESPECIALLY FOR THE POOR AS OF 1990 ONLY ONE LEGALAID WORKER EXISTED FOR EVERY 7808 PEOPLE BELOW THE GOVERNMENT'S POVERTY LINE WHILE ONE PRIVATE ATTORNEY EXISTED FOR EVERY 339 US CITIZENS IF THERE IS ANY HELP ON THE WAY IT IS LIKELY TO COME IN THE FORM OF INNOVATIONS BY COURT SYSTEMS TO MAKE SELFREPRESENTATION EASIER AND MORE EFFECTIVE IN MARICOPA SUPERIOR COURT IN PHOENIX THE COURT'S NEW SERVICES INCLUDE A DOITYOURSELF DIVORCE VIDEO WHICH PLAYS ALMOST CONTINUOUSLY IN A COURTHOUSE WAITING ROOM AND AN ONTHESPOT ATTORNEY WHO CHARGES 20 FOR A HALFHOUR PREPARATION SESSION IN ONE BRANCH OF THE COURT THERE IS A TOUCHSCREEN COMPUTER THAT ASKS A SERIES OF QUESTIONS AND PRINTS OUT COMPLETED COURT FILINGS THE COMPUTER FEATURES AN ONSCREEN LEGAL DICTIONARY AND EVEN PLAYS VIVALDI WHEN IT IS IDLE MOST IMPORTANT THE COURT PROVIDES PARALEGAL CONSULTATIONS FREE OF CHARGE THE PARALEGAL DAVID BISHOP OPERATES OUT OF A CLAUSTROPHOBIC OFFICE DECORATED WITH THANKYOU NOTES HE HEARS PEOPLE'S TALES TELLS THEM WHAT FORMS THEY NEED AND FILLS OUT THE FORMS ON A COMPUTER FOR ONE MAN WHO RECENTLY COMPLAINED THAT HIS TODDLER HAD BEEN SNATCHED BY THE BOY'S MOTHER MR BISHOP COMPLETED A PROPOSED COURT ORDER A PAPER TO CONFIRM CHILD CUSTODY A PARENTCHILD ACCESS PETITION AND A PETITION TO ESTABLISH CHILD SUPPORT HE ALSO WROTE A TODO LIST AND HANDED IT OVER WITH METICULOUS EXPLANATIONS DOWN TO WHERE TO GET THE FORMS NOTARIZED THE BANK ACROSS THE STREET IS CHEAPER THAN THE COURTHOUSE NOTARY BUT MR BISHOP IS OVERWHELMED LITIGANTS MUST VIE TO BE ONE OF THE FIRST SEVEN CALLERS THE DAY BEFORE AN APPOINTMENT A SETUP THAT DRIVES SOME PEOPLE TO CHEAT BY GETTING ALL THEIR FRIENDS TO PHONE TOO AND EVEN WITH THE APPOINTMENT SYSTEM MR BISHOP OFTEN DOESN'T GET TO ALL SEVEN LITIGANTS THE BACKUP IS SO NERVERATTLING THAT SHERIFF'S DEPUTIES ARE SUMMONED ABOUT ONCE A WEEK TO BREAK UP FISTFIGHTS AMONG THE WAITING ONE PERSON WILL SAY MY CHILD CUSTODY IS MORE IMPORTANT THAN YOUR CAR LADY SAYS JUDGE BARRY SILVERMAN AND THEY'LL DUKE IT OUT MORE THAN 700 CALLERS ARE LEFT STRANDED EVERY MONTH DRESSED IN A WHITE TSHIRT AND FLOUNCY MINISKIRT SUSAN MCHUGOINOUYE LOOKS FLUSTERED AS SHE RISES TO SPEAK SHE HESITATES AND LOOKS AROUND FOR HELP LIKE A JUNIOR HIGHSCHOOL STUDENT GIVING HER FIRST ORAL REPORT BUT THIS IS NO CLASSROOM IT IS A COURTROOM AND THE SCENE OF A BITTER CHILDCUSTODY DISPUTE ALTHOUGH MRS MCHUGOINOUYE APPEARS TO GAIN CONFIDENCE PART WAY THROUGH HER PRESENTATION HER ARGUMENT SEEMS DISTURBINGLY DISORGANIZED AND SHORT ON LEGAL REASONING ESPECIALLY COMPARED WITH THAT OF HER OPPOSING COUNSEL WHEN HE INTERRUPTS HER TO OBJECT SHE CLEARLY IS THROWN OFF BALANCE HE SUMMARIZES THE CASE IN A MEMORANDUM TO THE JUDGE SHE DOES NOT TWO WEEKS LATER THE JUDGE ISSUES HIS DECISION SHE LOSES THEY ARE THE LAWYERLESS AND MORE AND MORE OF THEM ARE DEMONSTRATING THEIR LIMITED SKILLS NOT TO MENTION THEIR CASUAL DRESS IN COURTROOMS ACROSS THE COUNTRY ESPECIALLY IN FAMILY COURT THE NUMBERS ARE EXPLODING IN DES MOINES IOWA 53 OF ALL SUCH CASES FEATURE LITIGANTS REPRESENTING THEMSELVES IN WASHINGTON DC THE FIGURE IS 88 AS THESE HORDES OF NONLAWYERS STUMBLE ALONG THEY CLOG SYSTEMS THAT AREN'T DESIGNED TO ACCOMMODATE AMATEURS CREATING A HOST OF NEW CHALLENGES FOR COURT ADMINISTRATORS THE LAWYERLESS OFTEN AREN'T FLYING SOLO BY CHOICE A FAMILY LAWYER OFTEN CAN COLLECT 10000 FOR A COMPLEX CASE A HEFTY CHUNK OF IT UP FRONT AND NONREFUNDABLE AFTER THE ECONOMY BEGAN TO SLOW FIVE YEARS AGO THE PERCENTAGE OF NONLAWYERS IN SUCH CASES BEGAN INCREASING SHARPLY MEANWHILE DIVORCE RATES REMAIN HIGH LAWYERS HAVEN'T LOWERED THEIR FEES TO LURE BACK THE LOST BUSINESS EITHER PLENTY OF HIGHERINCOME PEOPLE STILL ARE GETTING DIVORCED AND PAYING HOURLY RATES OF 100 AND HIGHER LAWYERS HAVE PRICED THEMSELVES OUT OF THE MIDDLECLASS MARKET SAYS CALIFORNIA SUPERIOR COURT JUDGE RODERIC DUNCAN WHO WROTE A BOOK ON NAVIGATING THE STATE'S MUNICIPAL COURTS WITHOUT AN ATTORNEY THEY'RE NOT INTERESTED IN THAT KIND OF WORK THIS OF COURSE RAISES BROADER QUESTIONS ABOUT OBTAINING JUSTICE A SYSTEM THAT PRESUPPOSES THE EXISTENCE OF TWO REPRESENTED PARTIES IS BREAKING DOWN CONTENDS SARAANN DETERMAN MODERATOR OF A SPARSELY ATTENDED PANEL ON MIDDLECLASS LEGAL SERVICES AT THE RECENT AMERICAN BAR ASSOCIATION CONVENTION THE HEAD OF A LEADING ATTORNEYS' GROUP THE AMERICAN ACADEMY OF MATRIMONIAL LAWYERS IS UNAPOLOGETIC I WISH THIS WERE A WORLD WHERE REALISTICALLY THE POOR COULD HAVE THE SAME JUSTICE AS THE PEOPLE WHO AREN'T POOR BUT THAT'S NOT THE WORLD SAYS ARTHUR E BALBIRER IT'S A SHAME JUSTICE SOMETIMES IS EXPENSIVE IF YOU CAN'T AFFORD TO PAY THERE ARE FEW ALTERNATIVES LEGALAID BUDGETS ARE DRAINED AS IT IS WITH LEGALASSISTANCE GROUPS ROUTINELY TURNING AWAY ALL DIVORCE AND CUSTODY WORK AND PRIVATE LAWYERS DESPITE MUCH PUBLIC HORNBLOWING ABOUT PRO BONO WORK ARE SHOWING NO INCLINATION TO FILL THE VOID MANY ATTORNEYS CONSIDER FAMILY LAW EMOTIONALLY DRAINING AND EXCESSIVELY TIMECONSUMING IN CASES OF SERIOUS INJURY POOR CLIENTS CAN GET A LAWYER BY GIVING HIM OR HER A PERCENTAGE OF AN ULTIMATE DAMAGE AWARD BUT SUCH FEES AREN'T PERMITTED IN FAMILYLAW CASES SO FEW VOLUNTEERS STEP FORWARD SAYS MR BALBIRER IT'S LIKE ASKING A CORPORATE EXECUTIVE WHY DON'T YOU FOR TWO MONTHS GIVE YOUR SALARY TO THE HOMELESS' NOT TO BE A WISE GUY BUT IF WE'RE GOING TO SAY THAT WE SHOULD APPLY THAT STANDARD DOWN THE LINE ANOTHER REASON SOME LITIGANTS SHUN LAWYERS MIGHT BE CALLED THE ARNIE BECKER SYNDROME AFTER THE UNCTUOUS ATTORNEY IN TV'S LA LAW MANY ARE LEERY OF SLIPPERY DIVORCE LAWYERS WITH SOME JUSTIFICATION A 1992 STUDY BY THE NEW YORK STATE DEPARTMENT OF CONSUMER AFFAIRS FOUND A PATTERN OF CERTAIN DIVORCE LAWYERS LITIGATING EXCESSIVELY JUST TO RATCHET UP FEES OTHERS UNSCRUPULOUSLY DEMANDED HUGE PAYMENTS ON THE BRINK OF TRIAL STILL OTHERS OVERCHARGED THEN ABANDONED CLIENTS WHEN THE MONEY RAN OUT ACCORDING TO THE REPORT ACTING ON THE STUDY THE NEW YORK COURT SYSTEM YESTERDAY ADDED SEVERAL NEW FAMILY LAW REGULATIONS NEVERTHELESS FOR SOME LIKE MRS MCHUGOINOUYE THE EXPERIENCE OF GOING WITHOUT A LAWYER IS NIGHTMARISH AN UNEMPLOYED TEACHER OF ENGLISH AS A SECOND LANGUAGE MRS MCHUGOINOUYE SAYS SHE COULDN'T AFFORD A LAWYER TO FIGHT HER EXHUSBAND'S DEMAND FOR CUSTODY OF THEIR TWIN DAUGHTERS I COULD HAVE BORROWED FROM MY PARENTS BUT I DIDN'T WANT TO SHE SAYS THEY HAD ALREADY LENT HER MONEY DURING A PREVIOUS CUSTODY BATTLE WITH HER EXHUSBAND THIS WAS EITHER THE FOURTH OR FIFTH DISPUTE FOR THE COUPLE THE PARENTS CAN'T EVEN AGREE ON THAT THE GIRLS 12 YEARS OLD AT THE TIME HAD LIVED TEMPORARILY WITH THEIR FATHER FOR ALMOST A YEAR HE WANTED PERMANENT CUSTODY AND HAD RETAINED AN ATTORNEY TO GET IT THE SHOWDOWN TOOK PLACE AT THE FAMILY COURT FIFTH CIRCUIT IN KAUAI HAWAII FROM THE MOMENT SHE FILED PAPERS STATING THAT SHE NO LONGER HAD A LAWYER MRS MCHUGOINOUYE SAYS SHE KNEW SHE WAS IN TROUBLE SHE SAYS A COURT CLERK MADE HER RETYPE THE ENTIRE FORM BECAUSE INSTEAD OF USING THE WORDS PRO SE SHE HAD USED PRO PER AN EQUIVALENT LATIN PHRASE USED IN MANY STATES TO DESCRIBE SOMEONE REPRESENTING HERSELF THEY WILL HAND YOU A FORM AND SAY NOTHING MRS MCHUGOINOUYE SAYS IF YOU ASK FOR ASSISTANCE IT'S LIKE IT'S REALLY REALLY TROUBLESOME THE KAUAI COURT ADMINISTRATOR SAYS HE DOUBTS THIS OCCURRED IN ANY CASE MANY SELFREPRESENTED LITIGANTS CAN RECOUNT SIMILAR EXPERIENCES IN PART THAT IS BECAUSE COURTS ARE SO UNDERFUNDED AND OVERLOADED THAT IT IS A GENUINE STRAIN TO GIVE SELFHELP LITIGANTS THE EXTRA ATTENTION THEY NEED AND MANY OF THE LAWYERLESS TEST THE COURT'S PATIENCE THEY TURN IN BRIEFS SCRAWLED IN LONGHAND PRESENT ARGUMENTS HYSTERICALLY AND DISPLAY UNREALISTIC EXPECTATIONS ABOUT JUST HOW MUCH THE SYSTEM CAN DO FOR THEM MRS MCHUGOINOUYE FOR INSTANCE WAS DISAPPOINTED THAT COURT STAFF WOULDN'T LET HER BORROW A TYPEWRITER TO RETYPE FILINGS EVEN IF THEY WANT TO HELP COURT EMPLOYEES JUDGES AND ATTORNEYS ARE HAMSTRUNG BY ETHICS CODES THAT REQUIRE THE COURT TO REMAIN NEUTRAL AND REFRAIN FROM COACHING OR HELPING ANY PARTY IT CAN BE PAINFUL FOR WORKERS AND JUDGES TO SEE LITIGANTS ADRIFT LOSING OUT ON OPPORTUNITIES THEY KNOW NOTHING ABOUT BUT IT IS ALSO IMPROPER FOR JUDGES TO GIVE A BREAK TO AN UNREPRESENTED LITIGANT JUST BECAUSE HE OR SHE DOESN'T KNOW THE LAW YOU CAN'T SAY I'M GOING TO WEIGH THIS PERSON'S ARGUMENT 60 BECAUSE THEY'RE UNREPRESENTED AND I'LL WEIGH THE ATTORNEY'S ARGUMENT 40' SAYS JUDGE CLIFFORD L NAKEA WHO PRESIDED OVER MRS MCHUGOINOUYE'S CASE MRS MCHUGOINOUYE'S BIGGEST MISTAKE WAS A WHOPPER ON THE DAY OF FINAL ARGUMENTS SHE HAD BEEN UNDER THE IMPRESSION THAT JUDGE NAKEA WOULD SIMPLY INTERVIEW HER DAUGHTERS ON THE DAY OF THE COURT SESSION AND ANNOUNCE HIS RULING LATER INSTEAD THE JUDGE FINISHED INTERVIEWING THE GIRLS ENTERED THE COURTROOM AND ASKED MRS MCHUGOINOUYE AND THE OPPOSING ATTORNEY TO BEGIN FINAL ARGUMENTS JUDGE NAKEA EXPLAINED THAT ALL SIDES HAD AGREED ON SUCH A TRIAL DURING AN EARLIER CONFERENCE SOMEHOW MRS MCHUGOINOUYE DIDN'T GET THE MESSAGE SMALL WONDER SHE SEEMED UNPREPARED AND DISTRACTED DURING HER SEVENMINUTE ARGUMENT IF YOU DON'T KNOW WHAT THE PROCEDURES ARE IN THE COURT SYSTEM YOU GET KILLED SAYS BARBARA E HANDSCHU FORMER HEAD OF THE NEW YORK STATE BAR'S FAMILYLAW SECTION YOU GET ALL SORTS OF COMPLICATIONS THAT LAY PEOPLE MAY NOT REALIZE IN DIVORCE CASES FOR INSTANCE THE TAX AND INSURANCE RAMIFICATIONS OF SPLITTING UP CAN GET EXTREMELY ARCANE SHE FELT CONFIDENT SHE COULD DO SO BECAUSE SHE HAS A MASTER'S DEGREE ALBEIT IN ART EDUCATION AND ENJOYS RESEARCH MS CROSBY CONTACTED A GROUP OF LEGALREFORM ACTIVISTS FOR TACTICAL ADVICE SHE DISCOVERED A FREE LAW LIBRARY AT THE LOCAL COURTHOUSE BY THE TIME A MAJOR HEARING ROLLED AROUND IN JUNE SHE WAS COMFORTABLE CITING PRECEDENTS AND OBJECTING TO IRRELEVANT TESTIMONY I'VE LEARNED A LOT SHE SAYS BY TRADITIONAL LEGAL STANDARDS SHE HAS MADE SOME MISTAKES SHE WASTED A LOT OF TIME WRITING UP A SUBPOENA THAT SHE NEVER SERVED SHE LOST A BATTLE TO AVOID PAYING HER HUSBAND'S LEGAL COSTS AFTER HE WON AN APPEAL THAT SHE HAD INITIATED BUT SHE HAS ALSO ARGUED CALMLY BEFORE HEARING EXAMINERS AND FENDED OFF HER EXHUSBAND'S EFFORTS TO GET MORE VISITING TIME WITH THE CHILDREN ALSO IN A FAIRLY DIFFICULT MANEUVER SHE MANAGED TO GET A NEW LAW GUARDIAN APPOINTED FOR THEM WOULD SHE HIRE AN ATTORNEY NOW IF SHE HAD THE MONEY LAUGHING SHE SAYS I'VE BEEN BURNED SO SERIOUSLY IT'S LIKE ASKING ME IF I WOULD EVER REMARRY IT WOULD HAVE TO BE AN INCREDIBLE ATTORNEY WITH AN INCREDIBLE BACKGROUND DESPITE MS CROSBY'S EXPERIENCE MOST LEGAL EXPERTS AGREE THAT PEOPLE WHO MARCH INTO COURT WITHOUT LAWYERS ARE AT A DISADVANTAGE AND ONE THAT IS LIKELY TO BECOME A FIXTURE OF THE NEW LEGAL ENVIRONMENT ESPECIALLY FOR THE POOR AS OF 1990 ONLY ONE LEGALAID WORKER EXISTED FOR EVERY 7808 PEOPLE BELOW THE GOVERNMENT'S POVERTY LINE WHILE ONE PRIVATE ATTORNEY EXISTED FOR EVERY 339 US CITIZENS IF THERE IS ANY HELP ON THE WAY IT IS LIKELY TO COME IN THE FORM OF INNOVATIONS BY COURT SYSTEMS TO MAKE SELFREPRESENTATION EASIER AND MORE EFFECTIVE IN MARICOPA SUPERIOR COURT IN PHOENIX THE COURT'S NEW SERVICES INCLUDE A DOITYOURSELF DIVORCE VIDEO WHICH PLAYS ALMOST CONTINUOUSLY IN A COURTHOUSE WAITING ROOM AND AN ONTHESPOT ATTORNEY WHO CHARGES 20 FOR A HALFHOUR PREPARATION SESSION IN ONE BRANCH OF THE COURT THERE IS A TOUCHSCREEN COMPUTER THAT ASKS A SERIES OF QUESTIONS AND PRINTS OUT COMPLETED COURT FILINGS THE COMPUTER FEATURES AN ONSCREEN LEGAL DICTIONARY AND EVEN PLAYS VIVALDI WHEN IT IS IDLE MOST IMPORTANT THE COURT PROVIDES PARALEGAL CONSULTATIONS FREE OF CHARGE THE PARALEGAL DAVID BISHOP OPERATES OUT OF A CLAUSTROPHOBIC OFFICE DECORATED WITH THANKYOU NOTES HE HEARS PEOPLE'S TALES TELLS THEM WHAT FORMS THEY NEED AND FILLS OUT THE FORMS ON A COMPUTER FOR ONE MAN WHO RECENTLY COMPLAINED THAT HIS TODDLER HAD BEEN SNATCHED BY THE BOY'S MOTHER MR BISHOP COMPLETED A PROPOSED COURT ORDER A PAPER TO CONFIRM CHILD CUSTODY A PARENTCHILD ACCESS PETITION AND A PETITION TO ESTABLISH CHILD SUPPORT HE ALSO WROTE A TODO LIST AND HANDED IT OVER WITH METICULOUS EXPLANATIONS DOWN TO WHERE TO GET THE FORMS NOTARIZED THE BANK ACROSS THE STREET IS CHEAPER THAN THE COURTHOUSE NOTARY BUT MR BISHOP IS OVERWHELMED LITIGANTS MUST VIE TO BE ONE OF THE FIRST SEVEN CALLERS THE DAY BEFORE AN APPOINTMENT A SETUP THAT DRIVES SOME PEOPLE TO CHEAT BY GETTING ALL THEIR FRIENDS TO PHONE TOO AND EVEN WITH THE APPOINTMENT SYSTEM MR BISHOP OFTEN DOESN'T GET TO ALL SEVEN LITIGANTS THE BACKUP IS SO NERVERATTLING THAT SHERIFF'S DEPUTIES ARE SUMMONED ABOUT ONCE A WEEK TO BREAK UP FISTFIGHTS AMONG THE WAITING ONE PERSON WILL SAY MY CHILD CUSTODY IS MORE IMPORTANT THAN YOUR CAR LADY SAYS JUDGE BARRY SILVERMAN AND THEY'LL DUKE IT OUT MORE THAN 700 CALLERS ARE LEFT STRANDED EVERY MONTH SEE RELATED LETTER LETTERS TO THE EDITOR IF YOU'RE NOT A LAWYER SHUT UP WSJ SEPT 17 1993 9309020010 YY93 MM09 9309170049 930825 TECHNOLOGY & HEALTH BLOOD TEST FOR PROSTATE CANCER IS FOUND MORE EFFECTIVE THAN COLON CANCER TEST BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL THERE WAS GOOD NEWS AND NOTSOGOOD NEWS ABOUT BLOOD TESTS TO DETECT CANCER THE GOOD NEWS WAS THAT A BLOOD TEST USED TO SCREEN HEALTHY MEN FOR PROSTATE CANCER WAS FOUND TO BOOST THE CHANCES OF UNCOVERING A CANCER AT AN EARLIER STAGE THAN IT WOULD HAVE BEEN FOUND WITH THE CONVENTIONAL PHYSICAL EXAMINATION THE LESSTHANGOOD NEWS WAS THAT A BLOOD TEST USED FOR THE PAST TWO DECADES TO DETECT RECURRENCES OF COLON CANCER AFTER SURGERY ISN'T SAVING LIVES THE TWO DEVELOPMENTS WERE DESCRIBED IN SEPARATE REPORTS PUBLISHED IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION THE PROSTATE CANCER BLOOD TEST KNOWN AS THE PSA FOR PROSTATE SPECIFIC ANTIGEN TEST DETECTS A PROTEIN AN ANTIGEN THAT PROSTATE TISSUE SHEDS INTO THE BLOOD AN ABNORMAL LEVEL OF THE ANTIGEN IN THE BLOODSTREAM IS SUPPOSED TO RAISE A DOCTOR'S SUSPICION THAT THE PATIENT MIGHT HAVE PROSTATE CANCER THE PSA TEST IS PROVEN TO BE RELATIVELY ACCURATE IN DETECTING PROSTATE CANCER PARTICULARLY WHEN USED IN CONJUNCTION WITH THE DIGITAL RECTAL EXAMINATION WHERE A DOCTOR FEELS THE WALNUTSIZED GLAND FOR HARDNESS BUT THERE IS CONTROVERSY OVER WHETHER IT IS GOOD ENOUGH TO BE USED ALONE TO SCREEN NONSYMPTOMATIC MEN FOR PROSTATE CANCER IT ISN'T YET KNOWN WHETHER SCREENING OF HEALTHY MEN WITH THE PSA TEST WILL INCREASE CHANCES OF BEING DIAGNOSED AND CURED OF THE CANCER OR WHETHER WIDESPREAD USE OF THE TEST WILL REDUCE THE PROSTATE CANCER DEATH RATE AN ESTIMATED 165000 MEN ARE DIAGNOSED WITH PROSTATE CANCER EACH YEAR AND ANOTHER 35000 DIE OF IT IN ONE OF THE LARGEST AND LONGEST RUNNING CONTINUING STUDIES OF USE OF THE PSA TEST TO SCREEN HEALTHY MEN FOR PROSTATE CANCER RESEARCHERS AT WASHINGTON UNIVERSITY IN ST LOUIS HAVE BEEN FOLLOWING THE FATES OF MORE THAN 10000 MEN WHO VOLUNTEERED TO TAKE THE PSA TEST EVEN THOUGH THEY HADN'T ANY SIGNS OF PROSTATE CANCER THEY HAD BEEN TESTED SINCE MID1989 IN THEIR LATEST REPORT WILLIAM J CATALONA AND HIS COLLEAGUES SAID THAT THE FIRST ROUND OF PSA TESTS OF THE 10000 MEN LED TO THE DISCOVERY OF 244 MEN WITH PROSTATE CANCER IN SUBSEQUENT TESTS OF MEN WHOSE PSA LEVELS INITIALLY WERE NORMAL THE BLOOD TEST REVEALED RISING LEVELS OF THE ANTIGEN AND LED TO THE DISCOVERY OF ANOTHER 129 PROSTATE CANCERS BUT THE MOST SIGNIFICANT FINDING THE RESEARCHERS SAID WAS THAT ABOUT 70 OF THE CANCERS FOUND IN OTHER TESTS AFTER PSA TESTING WERE STILL CONFINED TO THE PROSTATE GLAND IN CONTRAST AMONG ANOTHER GROUP OF 266 PATIENTS WHO WEREN'T SCREENED WITH THE BLOOD TEST BUT WHO HAD SUSPICIOUS DIGITAL RECTAL EXAMINATIONS ONLY 30 OF THE CANCERS DETECTED WERE STILL CONFINED TO THE PROSTATE GLAND THE REMAINDER OF THE CANCERS IN BOTH GROUPS ALREADY HAD BEGUN TO SPREAD OUTSIDE OF THE GLAND AT THE TIME OF DIAGNOSIS OUR RESULTS PROVIDE THE FIRST DEMONSTRATION TO OUR KNOWLEDGE THAT PROSTATE CANCER SCREENING DETECTS MORE PATHOLOGICALLY LOCALIZED PROSTATE CANCERS THAN TRADITIONAL METHODS THE RESEARCHERS REPORTED WHETHER THIS PSA SCREENING WILL RESULT IN ANY DECREASE IN THE PROSTATE CANCER DEATH RATE WON'T BE KNOWN UNTIL THE RESEARCHERS GET RESULTS FROM BROADER STUDIES NOW UNDERWAY BUT EARLIER DETECTION IS GENERALLY THOUGHT TO LEAD TO SIMPLER LESS EXPENSIVE TREATMENT AND A HIGH RATE OF CURE THE DISAPPOINTING REPORT INVOLVING COLON CANCER CONCERNED THE SOCALLED CEA FOR CARCINOEMBRYONIC ANTIGEN BLOOD TEST THE CEA TEST HAS BEEN USED FOR THE LAST TWO DECADES TO MONITOR PATIENTS WHO HAVE UNDERGONE SURGERY FOR COLON CANCER A RISING CEA LEVEL IN THE BLOOD WOULD SIGNAL A POSSIBLE RECURRENCE OF THE CANCER TO SEE IF THE CEA TESTING IS WORTHWHILE A TEAM OF RESEARCHERS FROM SEVERAL MEDICAL INSTITUTIONS LOOKED AT THE FATES OF MORE THAN 1000 COLON CANCER PATIENTS FOR WHOM THE CEA TEST WAS USED TO SPOT RECURRENCES OF THESE 417 HAD RECURRENCES OF THEIR COLON CANCER BUT ONLY 59 HAD HAD A RECURRENCE SIGNALED BY A HIGH CEA LEVEL AMONG THE 600 WHO DIDN'T DEVELOP NEW COLON CANCERS 16 HAD A HIGH FALSEPOSITIVE CEA LEVEL THE END RESULT HOWEVER WAS DISAPPOINTING AMONG THE CEAMONITORED PATIENTS WHO DEVELOPED RECURRENCES ONLY 23 WERE ALIVE AND CANCERFREE A YEAR AFTER BEING OPERATED ON FOR THEIR RECURRENT CANCER THIS WAS ALMOST IDENTICAL TO THE FATES OF 200 PATIENTS WHO HADN'T BEEN MONITORED WITH THE CEA TEST BUT WHO HAD RECURRENCES OF COLON CANCER ONLY 2 OF THE UNMONITORED PATIENTS WERE ALIVE AND CANCER FREE ONE YEAR AFTER THEIR SECOND OPERATION BALANCED AGAINST ANY GAIN FROM CEA MONITORING ARE THE COST IN DOLLARS OF THE ASSAYS PLUS RELATED DIAGNOSTIC TESTS AND SURGERY SAID THE RESEARCH TEAM WHICH WAS HEADED BY CHARLES G MOERTEL OF THE MAYO CLINIC IN ROCHESTER MINN AMONG OTHER FACTORS TO BE WEIGHED IN THE BALANCE THEY ADDED IS THE FACT THAT FOR THE GREAT MAJORITY OF PATIENTS WITH RECURRENT COLON CANCERS AN ELEVATED CEA CONCENTRATION ONLY RESULTS IN PREMATURE KNOWLEDGE OF A FATAL DISEASE SEE RELATED LETTERS LETTERS TO THE EDITOR BLOOD TEST FOR CANCER A LIFESAVER FOR MANY WSJ SEPT 17 1993 9308250087 YY93 MM09 9309160181 930916 LEISURE & ARTS REALITY COMES TO CHINA'S FILMS KICKING AND SCREAMING BY LINDA JAIVIN SYDNEY KAZI IS A BASTARD A GOODLOOKING AMORAL LAYABOUT IN HIS EARLY 20S HE DRINKS SWEARS FIGHTS SMOKES DOPE AND GETS WOMEN INTO BED WITH FORCE WHEN PERSUASION WON'T DO HE COULD BE A REBEL WITHOUT A CAUSE IF HE HAD THE ENERGY TO REBEL INSTEAD KAZI THE PROTAGONIST OF THE NEW CHINESE FILM BEIJING BASTARDS BASICALLY JUST HANGS OUT LISTENS TO ROCK MUSIC AND WONDERS WHERE HIS PREGNANT GIRLFRIEND HAS GONE CUT KAZI CAN'T BE THE HERO OF A CHINESE FILM CAN HE GRANTED ECONOMIC REFORM HAS INTRODUCED A CERTAIN IDEOLOGICAL LASSITUDE BUT KAZI IS SO FAR FROM THE STEREOTYPICALLY OUTSTANDING RIGHTEOUS AND PERFECT HEROES OF THE MAOIST ERA THAT FROM WHERE THEY STOOD HE COULDN'T BE SEEN WITH A TELESCOPE BY COMPARISON EVEN THE MIDDLE CHARACTER NEITHER HEROIC NOR VILLAINOUS PROTAGONISTS THAT HAVE DOMINATED THE CHINESE SCREEN SINCE THE EARLY '80S LOOK LIKE SIMPLE PROPAGANDA TOOLS SO HOW'D HE MAKE IT UP ONTO THE BIG SCREEN ZHANG YUAN A MEMBER OF A NEWER BOLDER BADDER GENERATION OF CHINESE FILMMAKERS PUT HIM THERE THAT'S HOW MR ZHANG 30 IS A GRADUATE OF THE BEIJING FILM ACADEMY WHOSE GRADUATES IN THE MID80S BROUGHT US THE FIFTH GENERATION AND THE NEW CHINESE CINEMA DIRECTORS LIKE CHEN KAIGE WHOSE FIRST EFFORT YELLOW EARTH WAS ONE OF THE MOVEMENT'S SEMINAL EFFORTS MR CHEN AND HIS PEERS HAVE SPENT THEIR PROFESSIONAL LIVES NEGOTIATING A MIDDLE GROUND BETWEEN THE PROPAGANDISTIC AND/OR COMMERCIAL DICTATES OF THE STATERUN STUDIO SYSTEM AND THEIR OWN DESIRES FOR SELFEXPRESSION MR ZHANG COULD HAVE TAKEN THE SAME ROAD BUT HE REFUSED WHEN MR ZHANG GRADUATED IN 1989 HE WAS ASSIGNED TO THE AUGUST 1 FILM STUDIO RUN BY THE PEOPLE'S LIBERATION ARMY HARDLY THE EMPLOYER OF CHOICE FOR MOST STUDENTS IN THAT FATEFUL YEAR OF THE BEIJING MASSACRE FOR WHATEVER REASON MR ZHANG DIDN'T STICK AROUND LONG ENOUGH TO SALUTE HE DIRECTED HIS FIRST FILM THE BLACKANDWHITE DOCUDRAMA MAMA 1991 ABOUT A MOTHER'S STRUGGLE TO BRING UP HER MENTALLY HANDICAPPED CHILD WHOLLY OUTSIDE THE OFFICIAL SYSTEM THE FILM WAS ONE OF THE FIRST INDEPENDENT FEATURES EVER TO BE PRODUCED IN THE PEOPLE'S REPUBLIC BY THE TIME BEIJING BASTARDS HIS SECOND FEATURE WAS COMPLETED THIS JUNE CHINA ALREADY BOASTED A FLEDGLING INDIE SCENE MR ZHANG'S CLOSE FRIEND WU WENGUANG A 37YEAROLD FORMER TEACHER AND TELEVISION JOURNALIST IS ANOTHER MAJOR PLAYER MR WU HAS MADE TWO INDEPENDENT VIDEO DOCUMENTARIES BUMMING IN BEIJINGTHE LAST DREAMERS 1990 ABOUT THE CAPITAL'S UNDERGROUND ARTS SCENE AND 1966 MY TIME IN THE RED GUARD 1993 WHICH INTERCUTS INTERVIEWS WITH FIVE FORMER RED GUARDS WITH DOCUMENTARY FOOTAGE OF THE CULTURAL REVOLUTION AND SCENES OF AN ALLWOMEN ROCK BAND REHEARSING THEIR SONG 1966 RED TRAIN MEANWHILE SEVERAL EMPLOYEES OF CENTRAL TELEVISION HAVE BANDED TOGETHER INTO THE STRUCTURE WAVE YOUTH CINEMA EXPERIMENTAL GROUP TO PRODUCE VIDEO DOCUMENTARIES THAT INCLUDE AN EIGHTPART LOOK AT CONTEMPORARY LIFE IN BEIJING CALLED TIANANMEN 1991 AND I HAVE GRADUATED THE FORMER DOESN'T TOUCH ON THE EVENTS OF 1989 DIRECTLY BUT THEY'RE OBVIOUSLY A SUBTEXT IN THE LATTER UNIVERSITY GRADUATES DISCUSS THEIR LIVES AND ASPIRATIONS IN THE WAKE OF THE BEIJING MASSACRE ACCORDING TO MR WU THERE ARE AT LEAST A DOZEN OTHER PEOPLE ALL APPARENTLY IN BEIJING MAKING FEATURES DOCUMENTARIES AND DOCUDRAMAS INDEPENDENTLY OF THE OFFICIAL STUDIO SYSTEM FREEDOM SAYS MR WU IS LIKE THIS CUP OF TEA WE USED TO SIT AROUND DREAMING OF THE DAY WHEN SOMEONE WOULD GIVE US PERMISSION TO HAVE A SIP OR COMPLAINING THAT NO ONE EVER DID BUT I BELIEVE YOU'VE JUST GOT TO REACH OUT AND TAKE IT WE MUST CREATE THE CONDITION OF FREEDOM FOR OURSELVES CHINA'S ECONOMIC REFORMS OF COURSE HAVE HELPED PUT THE CUP OF TEA ON THE TABLE THE STATE NOW DEMANDS THAT STUDIOS LIKE OTHER ENTERPRISES LOOK AFTER THEIR OWN BOTTOM LINES AS A RESULT IT IS NOW POSSIBLE FOR AN ASPIRING FILM MAKER TO BUY OR RENT EITHER ON THE OPEN MARKET OR THROUGH THE BACK DOOR ALL THE EQUIPMENT AND FILM OR VIDEOTAPE HE OR SHE NEEDS FOR FINANCING A DIRECTOR MAY SOLICIT LOANS OR DONATIONS FROM FRIENDS FAMILY FOREIGN SOURCES AND EVEN THE OCCASIONAL OFFICIAL ORGANIZATION WU WENGUANG MAKES ADVERTISEMENTS FOR TELEVISION AS A FREELANCE DIRECTOR AND USES THE PROCEEDS TO MAKE HIS DOCUMENTARIES BUDGETS TEND TO BE LOW MAMA WAS MADE ON A MERE 240000 YUAN ABOUT 42000 AT THE CURRENT OFFICIAL RATE THE CREW AND CAST ARE OFTEN FRIENDS OF THE DIRECTOR SO FAR SO GOOD BUT THERE'S ONE CATCH WITHOUT THE IMPRIMATUR OF A STUDIO THE INDIES HAVE NO HOPE OF THEATRICAL DISTRIBUTION WITHIN CHINA SAMIZDAT VIDEOS CIRCULATE BUT CANNOT BE FOUND IN SHOPS OR RENTAL OUTLETS OCCASIONALLY DIRECTORS ORGANIZE SMALL VIEWINGS SOMETIMES AT HOME SOMETIMES IN A RENTED HALL IF THEY'VE GOT THE MONEY AND FEEL THEY CAN GET AWAY WITH IT BOTH ZHANG YUAN AND WU WENGUANG MEANWHILE ENJOY THE ATTENTION THEY ARE RECEIVING ABROAD BEIJING BASTARDS WAS PUT INTO COMPETITION AT A FESTIVAL IN LOCARNO SWITZERLAND AND WON A SPECIAL MENTION IN AUGUST MR WU WAS HERE TO PRESENT HIS FILMS AT THE MUSEUM OF CONTEMPORARY ART YET THEIR GREATEST DESIRE IS TO GAIN AN AUDIENCE AT HOME MAMA THE STORY OF THE MOTHER WITH A MENTALLY HANDICAPPED CHILD WAS RECENTLY CLEARED FOR PUBLIC RELEASE AS THE RESULT OF A FINANCIAL DEAL WITH THE XIAN FILM STUDIO WHICH NOW LENDS ITS NAME TO THE FILM BUT IT'S UNLIKELY MOST OF THE OTHER FILMS WILL RESOLVE THE PROBLEM AS EASILY MR WU'S 1966 MY TIME IN THE RED GUARD AND THE TELEVISION GROUP'S I HAVE GRADUATED DEAL WITH POLITICALLY SENSITIVE SUBJECTS IN A CANDID FASHION IN I HAVE GRADUATED FOR INSTANCE ONE STUDENT TELLS HOW HE NEARLY COMMITTED SUICIDE AS A RESULT OF THE BEIJING MASSACRE THERE HAS BEEN OFFICIAL GRUMBLING ABOUT SEVERAL OF THE INDEPENDENT FILMS INCLUDING THE TIANANMEN SERIES AFTER IT WAS MENTIONED IN TIME MAGAZINE OF COURSE NEITHER TROUBLE NOR CONTROVERSY IS THE EXCLUSIVE RESERVE OF THE INDIES CHEN KAIGE'S LATEST FILM FAREWELL TO MY CONCUBINE WAS PASSED BY CHINA'S CENSORS AROUND THE TIME IT WON THE PALME D'OR AT CANNES IN MAY MR CHEN HAS REPORTEDLY HAD TO MAKE A SMALL NUMBER OF SOFTENING CHANGES TO OBTAIN OFFICIAL PERMISSION FOR WIDE DISTRIBUTION OF THE FILM IN CHINA STILL MORE THAN 30 THEATERS IN SHANGHAI HAVE BEEN SHOWING FAREWELL UNCUT AND IN DEFIANCE OF BEIJING'S BAN BUT THOUGH THE GOVERNMENT HAS ALWAYS EXERTED SOME CONTROL OVER FILMS MADE WITHIN THE SYSTEM IT SEEMS THAT BEIJING BASTARDS WILL PROVE THE REAL TEST OF OFFICIAL TOLERANCE FOR INDEPENDENT FILMS CHINESE AUTHORITIES REPORTEDLY SENT A LETTER TO THE ORGANIZERS OF THE LOCARNO FESTIVAL DEMANDING THAT THIS ILLEGAL FILM BE WITHDRAWN FROM COMPETITION YET WHEN LOCARNO STOOD FIRM THE GOVERNMENT MADE NO ATTEMPT TO PREVENT ZHANG YUAN FROM ACCOMPANYING THE FILM TO SWITZERLAND BEFORE HE LEFT CHINA MOREOVER MR ZHANG MANAGED TO HOLD AN INVITATIONONLY SCREENING IN BEIJING FOR SEVERAL HUNDRED PEOPLE IN A HALL HE RENTED FROM THE NATIONAL FILM DISTRIBUTION CORPORATION ITSELF NO ONE INTERFERED THE MINISTRY OF TELEVISION BROADCASTING AND FILM IS SAID TO HAVE ISSUED AN INTERNAL DIRECTIVE OUTLINING OFFICIAL POLICY ON THE INDIES WHILE NONE OF THE FILM MAKERS HAVE SEEN IT THEY BELIEVE THAT AT THE VERY LEAST IT ORDERS THE PRESS NOT TO DISSEMINATE ANY NEWS OR REVIEWS ON THE SUBJECT THIS IS NOT SURPRISING EITHER THE COMMUNIST PARTY HAS LONG RECOGNIZED THE POTENTIAL OF CINEMA AS A KEY VEHICLE FOR PROPAGANDA THEY CERTAINLY DON'T WANT TO SEE IT IN THE HANDS OF LOOSE CANNONS LIKE MESSRS ZHANG AND WU GIVEN THE CURRENT ECONOMIC AND SOCIAL REALITIES IN CHINA HOWEVER THEY MAY NOT BE ABLE TO DO MUCH ABOUT IT MS JAIVIN IS COEDITOR OF NEW GHOSTS OLD DREAMS CHINESE REBEL VOICES 9309160180 930916 CANADA AUCTIONS BONDS OTTAWA THE CANADIAN GOVERNMENT SOLD AT AN AUCTION 180 BILLION CANADIAN DOLLARS US136 BILLION OF 75 BONDS DUE DEC 1 2003 AT AN AVERAGE YIELD OF 7011 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9309160179 930916 MARKETING & MEDIA MARKETSCAN PEANUT BUTTER MAKERS FEEL THE CRUNCH BY KATHLEEN DEVENY CHOOSY CONSUMERS ARE BUYING LESS PEANUT BUTTER AND PAYING LESS FOR IT PRICE COMPETITION ALONG WITH THE FACT THAT SOME CALORIECONSCIOUS ADULTS NOW SLATHER A LITTLE LESS ON EACH SANDWICH HAS HELPED TURN PEANUT BUTTER INTO ONE OF THE FASTEST DECLINING CATEGORIES IN SUPERMARKETS TODAY TOGETHER DOLLAR SALES OF THE CHUNKY AND CREAMY SPREADS DROPPED 122 DURING THE 13 WEEKS ENDED JULY 4 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE CONSUMERS AVOIDED NEARLY EVERY MAJOR BRAND DURING THE SECOND QUARTER DOLLAR SALES OF PROCTER & GAMBLE CO'S TOPSELLING JIF DROPPED 92 WHILE SALES OF CPC INTERNATIONAL INC'S SKIPPY BRAND DECLINED 13 SALES OF HERSHEY FOODS CORP'S REESE'S PEANUT BUTTER LAUNCHED AMID GREAT FANFARE LAST YEAR DECLINED 87 BUT ROBERT J GILLESPIE PRESIDENT OF BEST FOODS DIVISION OF CPC INTERNATIONAL BLAMES THE DECLINE MORE ON FALLING PEANUT PRICES AND PRICE COMPETITION AMONG MARKETERS THAN A SHIFT IN CONSUMERS' EATING HABITS PEANUT PRICES SOARED AFTER A 199091 DROUGHT SHRIVELED THE PEANUT CROP BUT IN THE PAST TWO YEARS PRICES HAVE DECLINED STEADILY IN TURN MARKETERS OF MANY PEANUT BUTTER BRANDS HAVE LOWERED PRICES SALES OF PEANUT BUTTER MEASURED IN POUNDS DECLINED ONLY 8 IN THE QUARTER AT THE SAME TIME CONSUMERS HAVE SIGNIFICANTLY CHANGED THE WAY THEY SHOP FOR GROCERIES TODAY'S PENNYPINCHING SHOPPERS ARE MORE WILLING THAN EVER TO HUNT AROUND FOR A BARGAIN AND WAREHOUSE CLUBS AND SUCH MASSMERCHANDISE OUTLETS AS WALMART OR KMART HAVE SIGNIFICANTLY INCREASED THE SPACE THEY DEVOTE TO BASIC GROCERY ITEMS INCLUDING PEANUT BUTTER FOR CPC INTERNATIONAL STRONG INCREASES IN SALES THROUGH THOSE TYPES OF STORES HAVE MADE UP FOR ABOUT TWOTHIRDS OF THE DECLINE IN SUPERMARKETS MR GILLESPIE SAYS BUT EVEN PEANUT BUTTER MAKERS CONDE THERE HAS BEEN SOME DECLINE IN CONSUMPTION OF THE FATLADEN SPREAD ESPECIALLY AMONG CALORIECOUNTING WOMEN CHILDREN UNDER AGE SIX REMAIN THE HEAVIEST PEANUTBUTTER CONSUMERS BUT WOMEN NOW EAT ABOUT 27 OF ALL PEANUT BUTTER A SLIGHT DECLINE FROM RECENT YEARS ACCORDING TO NPD GROUP A CONSUMER RESEARCH COMPANY IN CHICAGO NEVERTHELESS NPD REPORTS THAT THE VENERABLE PEANUTBUTTERANDJELLY SANDWICH REMAINS THE FOURTH MOST COMMON ENTREE EATEN BY AMERICANS AT LUNCH AND DINNER THE LIST OF FASTESTDECLINING PRODUCTS COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL IS BASED ON SCANNER DATA GATHERED FROM SUPERMARKETS EACH QUARTER INFORMATION RESOURCES BASED IN CHICAGO RANKS 323 CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE CHANGE IN DOLLAR VOLUME FROM THE YEAREARLIER PERIOD THOUGH GROWTH OFTEN COMES FROM NEW PRODUCTS OR PUMPEDUP PROMOTIONAL BUDGETS SALES OF GROCERY PRODUCTS OFTEN DECLINE FOR A VARIETY OF REASONS QUARTERLY SALES OF FROZEN ORANGE JUICE WERE SQUEEZED DURING THE QUARTER BUT THE DECLINE WAS MOSTLY DUE TO FALLING UNIT PRICES CAUSED BY PLUMMETING ORANGE PRICES ALTHOUGH DOLLAR SALES OF FROZEN ORANGE JUICE DECLINED 204 DURING THE QUARTER UNIT VOLUME WAS FLAT SALES OF OTHER FROZEN JUICES DECLINED 117 AS CONSUMERS SHIFTED TO READYTODRINK VERSIONS MARKETERS OF MICROWAVE DINNERS SUCH AS AMERICAN HOME PRODUCTS CORP'S CHEF BOYARDEE MICROWAVE MEALS OR DIAL CORP'S LUNCH BUCKETS WERE ALSO ZAPPED DURING THE QUARTER AS SALES DECLINED 141 FEW OF THE INSTANT MEALS TURNED OUT TO BE APPETIZING AS MARKETERS PROMISED AND CONSUMERS SEEM LESS WILLING NOWADAYS TO SWAP GOOD TASTE FOR SPEEDY PREPARATION MEANWHILE SALES OF INSTANT COFFEE FELL 152 TO 1316 MILLION HURT BY DECLINING COFFEE CONSUMPTION AND CONSUMERS' GROWING PREFERENCE FOR MORE FLAVORFUL BREWS THE INSTANT BREWS WERE CONSIDERED AN EXTRAORDINARY TECHNOLOGY WHEN THEY WERE INTRODUCED IN 1939 BUT EVEN NESTLE SA MAKER OF THE LEADING TASTER'S CHOICE BRAND CONCEDES YOUNGER CONSUMERS OFTEN AREN'T IMPRESSED 9309160178 930916 FINANCING BUSINESS UNITED GAMING INC UNITED GAMING INC LAS VEGAS WILL SELL 80 MILLION OF ITS 75 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 THE COMPANY SAID THE DEBENTURES WILL BE SOLD TO A LIMITED NUMBER OF INSTITUTIONAL BUYERS THROUGH ITS INVESTMENT BANKERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9309160177 930916 MARKETING & MEDIA MCA TO EXPAND FLORIDA THEME PARK HEATING UP RIVALRY WITH DISNEY WORLD BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL MCA INC SAID IT PLANS A MULTIBILLIONDOLLAR EXPANSION OF ITS UNIVERSAL STUDIOS FLORIDA THEME PARK WITH THE ADDITION OF A SECOND PARK PARTIALLY BASED ON ITS BLOCKBUSTER FILM JURASSIC PARK FIVE NEW HOTELS WITH MORE THAN 4300 ROOMS AND A NIGHTTIME ENTERTAINMENT COMPLEX THE EXPANSION WHICH MCA SAID WILL BE COMPLETED IN PHASES OVER 10 YEARS WILL MAKE THE ORLANDO FLA PROPERTY A MUCH MORE FORMIDABLE COMPETITOR TO NEARBY WALT DISNEY WORLD WHICH HAS THREE THEME PARKS AND 21000 HOTEL ROOMS WHILE TOURISTS NOW SPEND JUST A DAY OR TWO AT UNIVERSAL'S THEME PARK AND STUDIO THE EXPANDED COMPLEX TO BE DUBBED UNIVERSAL CITY FLORIDA COULD LURE THEM INTO LONGER VISITS THE COMPANY HOPES IT'S OUR VISION THAT WE'LL HAVE A WORLDCLASS DESTINATION RESORT SAID TOM WILLIAMS PRESIDENT AND CHIEF OPERATING OFFICER OF UNIVERSAL STUDIOS FLORIDA WHICH IS JOINTLY OWNED BY MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA UNIT AND RANK ORGANISATION PLC THE 630 MILLION THEME PARK OPENED IN JUNE 1990 TO A CASCADE OF BAD PUBLICITY OVER FAULTY RIDES BUT HAS SINCE BECOME THE THIRDMOSTATTENDED PARK IN THE COUNTRY BEHIND DISNEY WORLD AND DISNEYLAND IN ANAHEIM CALIF UNIVERSAL OFFICIALS REFUSED TO SAY EXACTLY HOW MUCH THE EXPANSION WILL COST THE ASSOCIATED PRESS QUOTED UNNAMED UNIVERSAL OFFICIALS AS SAYING THE PRICETAG WOULD BE 3 BILLION AND THAT MCA PRESIDENT SID SHEINBERG AND RANK MANAGING DIRECTOR MIKE GIFFORD SAID ADDITIONAL FINANCIAL PARTNERS ARE STILL BEING SOUGHT UNIVERSAL OFFICIALS REFUSED TO SAY EXACTLY HOW MUCH THE EXPANSION WILL COST THE ASSOCIATED PRESS QUOTED UNNAMED UNIVERSAL OFFICIALS AS SAYING THE PRICETAG WOULD BE 3 BILLION AND THAT MCA PRESIDENT SID SHEINBERG AND RANK MANAGING DIRECTOR MIKE GIFFORD SAID ADDITIONAL FINANCIAL PARTNERS ARE STILL BEING SOUGHT LAST YEAR ATTENDANCE AT UNIVERSAL STUDIOS FLORIDA ROSE 12 TO 67 MILLION WHILE ATTENDANCE AT DISNEY'S FLORIDA PARKS CLIMBED 8 TO 302 MILLION ACCORDING TO THE TRADE MAGAZINE AMUSEMENT BUSINESS RAYMOND L KATZ AN ENTERTAINMENT ANALYST WITH LEHMAN BROTHERS IN NEW YORK SAID UNIVERSAL STUDIOS FLORIDA ALREADY COSTS DISNEY A MILLION IN ATTENDANCE EACH YEAR AND HE EXPECTS THE EXPANSION WILL GIVE DISNEY SOME REASON TO WORRY IN THE FUTURE YOU'VE GOT COMPETITION NOW HE ADDED WALT DISNEY CO SHARES CLOSED YESTERDAY AT 39125 DOWN 150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DISNEY WORLD SPOKESMAN CHARLES RIDGEWAY DECLINED TO COMMENT ON UNIVERSAL'S PLANS BUT HE NOTED THAT DISNEY CHAIRMAN MICHAEL EISNER HAS TALKED OF PUTTING IN A FOURTH PARK AT DISNEY WORLD BY THE END OF THE DECADE AND THAT AN ADDITIONAL 4500 HOTEL ROOMS ALREADY ARE UNDER CONSTRUCTION UNIVERSAL'S MR WILLIAMS SAID THE FIRST PHASE OF THE PROJECT WHICH COULD GET STARTED AS EARLY AS 1995 WILL INCLUDE THE NEW THEME PARK SOME OF THE HOTELS A GOLF COURSE AND TENNIS CENTER IT WILL ALSO FEATURE A 12ACRE NIHTTIME ENTERTAINMENT COMPLEX WITH RESTAURANTS BARS RETAIL SHOPS MOVIE THEATERS DANCE CLUBS AND COMEDY VENUES PATTERNED AFTER THE SUCCESSFUL CITY WALK OUTDOOR SHOPPING MALL THAT OPENED THIS SUMMER AT UNIVERSAL STUDIOS HOLLYWOOD MCA IS BASED IN UNIVERSAL CITY CALIF THOUGH THE SECOND UNIVERSAL THEME PARK WILL RELY ON JURASSIC PARK FOR MANY OF ITS ATTRACTIONS DINOSAURS WILL DEFINITELY NOT BE THE ONLY THEME MR WILLIAMS SAID THAT SEEMS A GOOD HEDGE ON UNIVERSAL'S PART EVEN AS JURASSIC PARK SEEMS SURE TO BECOME THE TOPGROSSING MOVIE OF ALL TIME WORLDWIDE WITH MORE THAN 600 MILLION IN GROSS TICKET SALES ALREADY IT'S HARD TO KNOW WHAT JURASSIC PARK' MEANS ON A LONGTERM BASIS WHAT'S HOT THIS SUMMER MAY NOT BE FIVE YEARS FROM NOW SAID MERRILL LYNCH ANALYST HAROLD VOGEL MR WILLIAMS SAID THE FEATURES OF THE NEW PARK WILL DEPEND A LOT ON THE TECHNICAL FEASIBILITY OF CREATING LIFELIKE DINOSAURS AND SUCH JURASSIC PARK DIRECTOR/PRODUCER STEVEN SPIELBERG WILL SERVE AS A CREATIVE CONSULTANT ON THE PROJECT UNIVERSAL'S OTHER PLANS CALL FOR 300000 SQUARE FEET OF CONFERENCE SPACE AND AN EXPANSION OF ITS MOVIE AND TELEVISION PRODUCTION FACILITIES AS MANY AS FIVE MORE SOUND STAGES WILL BE ADDED TO THE SIX ALREADY AT THE PARK AND THE FIVE NEW HOTELS WILL BE DESIGNED TO DOUBLE AS MOVIE SETS MR WILLIAMS SAID AS AT DISNEY WORLD THE ATTRACTIONS AT UNIVERSAL CITY FLORIDA WILL BE LINKED BY A SYSTEM OF WATERWAYS WITH FERRIES TRAMS AND PEOPLEMOVER SYSTEMS WHISKING TOURISTS FROM ONE ADMISSION GATE TO ANOTHER WHEN COMPLETED UNIVERSAL'S FACILITIES WILL HAVE QUADRUPLED IN SIZE ENCOMPASSING NEARLY 600 UNDEVELOPED ACRES SOUTH OF THE EXISTING PARK TOTAL EMPLOYMENT IS EXPECTED TO INCREASE TO 18000 FROM ABOUT 4000 CURRENTLY UNIVERSAL SAID 9309160176 930916 JEFFERIES GROUP CALLS DEBT LOS ANGELES JEFFERIES GROUP INC SAID IT WILL CALL ALL ITS 295 MILLION 8 1/2 CONVERTIBLE SUBORDINATED DEBENTURES AND ITS 17 MILLION 7 CONVERTIBLE SUBORDINATED NOTES ON OCT 29 AT 1017 AND 1014 OF PRINCIPAL AMOUNT RESPECTIVELY HOLDERS OF THE SECURITIES ARE ENTITLED TO CONVERT THEM INTO THE BROKERAGE FIRM'S COMMON STOCK ON OR BEFORE OCT 22 AT A CONVERSION PRICE OF 23 9309160175 930916 TECHNOLOGY INTEL CORP'S PUERTO RICAN PLANT SANTA CLARA CALIF INTEL CORP SAID IT WILL SPEND 10 MILLION TO EXPAND THE PRODUCTION CAPABILITIES OF ITS MANUFACTURING COMPLEX IN PUERTO RICO THE CHIP MAKER SAID THE INVESTMENT WOULD ALLOW THE PLANT TO MANUFACTURE PRODUCTS SUCH AS MINIATURE CIRCUIT BOARDS FOR NEW GENERATIONS OF PORTABLE COMPUTERS 9309160174 930916 WESTERN RESOURCES INC BONDS TOPEKA KAN WESTERN RESOURCES INC SAID IT WILL REDEEM ITS 935 FIRST MORTGAGE BONDS DUE 1998 THE ENTIRE FACE AMOUNT OF 75 MILLION WILL BE REDEEMED ON OCT 15 AT 10221 PLUS ACCRUED INTEREST THE ELECTRIC AND NATURAL GAS UTILITIES HOLDING COMPANY SAID IT IS REDEEMING THE BONDS TO TAKE ADVANTAGE OF LOWER INTEREST RATES 9309160173 930916 BUSINESS BRIEF TOPPS SECONDQUARTER NET FELL 52 SENDING THE STOCK PRICE DOWN BY 10 NEW YORK REFLECTING CONTINUED SOFTNESS IN THE SPORTS AND ENTERTAINMENT TRADING CARD MARKETS TOPPS CO'S SECONDQUARTER NET INCOME PLUNGED 52 SENDING ITS STOCK DOWN 10 IN THE QUARTER ENDED AUG 28 TOPPS HAD NET OF 79 MILLION OR 17 CENTS A SHARE DOWN FROM 165 MILLION OR 35 CENTS A SHARE REVENUE FELL 17 TO 699 MILLION THE EARNINGS REPORT SENT TOPPS SHARES FALLING 875 CENTS TO 7875 IN OVERTHECOUNTER TRADING MORE THAN 17 MILLION SHARES CHANGED HANDS COMPARED WITH A DAILY AVERAGE OF 326915 SHARES THE STOCK HAS TRADED AS HIGH AS 18 IN THE PAST YEAR OTHER TRADING CARD COMPANIES ALSO DECLINED MARVEL ENTERTAINMENT GROUP INC WHICH MAKES FLEER TRADING CARDS FELL 125 CENTS TO 39875 IN NEW YORK STOCK EXCHANGE TRADING TOPPS SAID THAT THE LOWER EARNINGS STEMMED FROM LOWER SPORTS CARD PRODUCTION AND THAT EARNINGS WERE IN LINE WITH COMPANY EXPECTATIONS TOPPS SAID THE TRADING CARD MARKET HAS SHRUNK FROM A HIGH OF 14 BILLION IN 1990 TO ABOUT 11 BILLION THIS YEAR WE'RE WEATHERING THIS CONTRACTION WELL BUT IT IS HITTING US ACROSS THE BOARD SAID ARTHUR T SHORIN CHAIRMAN BUT THE CARD INDUSTRY INFRASTRUCTURE IS STRONG SEVERAL PAPERS HAVE CARD COLUMNISTS AND CARD SHOWS CONTINUE TO DRAW WELL WE DO SEE GOOD REASONS FOR LONGTERM GROWTH IN THE CATEGORY ANALYSTS EXPRESSED CONCERN ABOUT THE EARNINGS REPORT WITH SALOMON BROTHERS ANALYST JILL KRUTICK LOWERING HER RATING ON THE STOCK TO A HOLD FROM A BUY WE WERE LOOKING FOR 30 CENTS A SHARE MS KRUTICK SAID BUT THEIR ENTERTAINMENT BUSINESS DIDN'T GENERATE THE KIND OF NUMBERS WE EXPECTED AND JURASSIC PARK CARDS DIDN'T DO AS WELL AS WE'D HOPED MS KRUTICK ALONG WITH OTHER TRADING CARD ANALYSTS BELIEVES TOPPS IS A SOLID LONGTERM PLAY BUT IN THE SHORTTERM THEY FACE A TOUGHER ROAD BECAUSE THEY LACK ANCILLARY SOURCES OF SIGNIFICANT REVENUES MS KRUTICK SAID TOPPS ALSO MAKES BAZOOKA BUBBLE GUM AND OTHER CONFECTIONARIES 9309160172 930916 CAPITOL BANCORP INTENDS MERGER LANSING MICH CAPITOL BANCORP LTD AND FINANCIAL CENTER CORP SAID THEIR BOARDS HAVE APPROVED A LETTER OF INTENT FOR THEIR MERGER THROUGH THE EXCHANGE OF PREVIOUSLY UNISSUED COMMON STOCK AND WARRANTS OF CAPITOL BANCORP FOR THE COMMON STOCK OF FINANCIAL CENTER CORP THE MERGER IS SUBJECT TO APPROVAL BY A REGULATORY AGENCY AND SHAREHOLDERS OF FINANCIAL CENTER CORP 9309160171 930916 TECHNOLOGY HYAL PHARMACEUTICAL TEST MISSISSAUGA ONTARIO HYAL PHARMACEUTICAL CORP SAID IT RECEIVED CANADIAN GOVERNMENT APPROVAL TO PROCEED WITH A CLINICAL EVALUATION OF ITS HYALCT1101 DRUG IN THE TREATMENT OF ACTINIC KERATOSIS A PRECANCEROUS SKIN CONDITION THE DRUG IS UNDER EVALUATION IN AUSTRALIA CANADA AND THE US FOR TREATMENT OF BASAL CELL CARCINOMA THE COMPANY SAID THE STUDY WILL BE AT THE UNIVERSITY OF BRITISH COLUMBIA 9309160170 930916 WHO'S NEWS FOREST OIL CORP FOREST OIL CORP DENVER AUSTIN BEUTNER WAS ELECTED A DIRECTOR OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR BEUTNER 33 YEARS OLD IS CURRENTLY GENERAL PARTNER WITH CLOSELY HELD BLACKSTONE GROUP AN INVESTMENT BANKING FIRM IN NEW YORK FOREST'S BOARD SIZE INCREASES TO 14 WITH THE APPOINTMENT 9309160169 930916 WHO'S NEWS NEW YORK TIMES CO NEW YORK TIMES CO NEW YORK RICHARD H GILMAN WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT OF OPERATIONS AT THE COMPANY'S FLAGSHIP PAPER THE NEW YORK TIMES HE WILL OVERSEE PRODUCTION SYSTEMS AND TECHNOLOGY FOR THE NEWSPAPER MR GILMAN 42 YEARS OLD HAD BEEN VICE PRESIDENT OF SYSTEMS AND TECHNOLOGY 9309160168 930916 WHO'S NEWS CALIFORNIA WATER SERVICE CO CALIFORNIA WATER SERVICE CO SAN JOSE CALIF EDWARD D HARRIS JR 69 YEARS OLD WAS NAMED A DIRECTOR OF THIS WATER UTILITY DR HARRIS PROFESSOR AND CHAIRMAN OF THE DEPARTMENT OF MEDICINE AT THE STANFORD UNIVERSITY SCHOOL OF MEDICINE SUCCEEDS ROBERT J GLASER 75 WHO RESIGNED AFTER 21 YEARS AS A DIRECTOR 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 9309160167 930916 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 3/4 HIGH 3 3/16 LOW 3 5/8 NEAR CLOSING BID 3 3/4 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 149 DAYS 320 150 TO 239 DAYS 324 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 257 TWO MONTHS 256 THREE MONTHS 271 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 308 ONE MONTH 313 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 306 60 DAYS 306 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 1/8 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 670 60 DAYS 678 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 671 60 DAYS 681 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309160166 930916 BEST' LIST FOR WORKING MOTHERS SHOWS NEW FACES MIDWEST FIRMS OIL GIANTS BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL FAMILYFRIENDLY BENEFITS ARE SPRINGING UP IN SOME UNLIKELY QUARTERS ACCORDING TO WORKING MOTHER MAGAZINE'S 1993 LIST OF THE 100 BEST COMPANIES FOR MOTHERS THE OIL INDUSTRY A MALE BASTION NOT NOTED FOR ITS AFFINITY FOR WORKING MOTHERS HAS TWO COMPANIES ON THE LIST FOR THE FIRST TIME EXXON CORP AND AMOCO CORP AND THE MIDWEST A REGION THAT IN THE PAST HAS LAGGED BEHIND BOTH COASTS IN EASING EMPLOYEES' WORKFAMILY CONFLICT SHOT AHEAD WITH SEVEN ILLINOISBASED EMPLOYERS ADDED TO THE LIST SINCE LAST YEAR AN EQUAL NUMBER OF COMPANIES IN RECESSIONWRACKED CALIFORNIA WERE CUT AND LISTEES IN THE NEW YORK CITY REGION ALSO DWINDLED IN THE MIDWEST AND OTHER REGIONS EMPLOYERS ARE FEELING THE PRESSURE OF WORKERS COMING IN AND SAYING THAT COMPANY OVER THERE IS OFFERING ME THIS WONDERFUL FAMILY LEAVE AND FLEXIBLE SCHEDULE WHAT ARE YOU GUYS DOING' IT'S THAT PRESSURE THAT IS PUSHING THE MOVEMENT AHEAD SAYS BETTY HOLCOMB DEPUTY EDITOR OF WORKING MOTHER THE LIST RELEASED YESTERDAY REFLECTS FEROCIOUS CORPORATE RIVALRY FOR A FAMILYFRIENDLY IMAGE AFTER EXPANDING THE LIST EVERY YEAR SINCE IT BEGAN WITH 35 EMPLOYERS IN 1985 WORKING MOTHER CAPPED IT THIS YEAR AT THE 1992 LEVEL OF 100 COMPANIES THOUGH IT RECEIVED MORE THAN 1000 INQUIRIES AND 300 APPLICATIONS NEARLY ONETHIRD OF LAST YEAR'S LISTEES INCLUDING SEVERAL COMPANIES THAT PIONEERED CHILDCARE OR FLEXIBLE SCHEDULING PROGRAMS AND HAD BEEN ON THE LIST SINCE ITS INCEPTION WERE WIPED OUT IN THIS YEAR'S COMPETITION HUNDREDS MORE WERE TURNED AWAY THE LIST REFLECTS A RAPID BROADENING OF WORKFAMILY PROGRAMS ACROSS INDUSTRY LINES AS RECENTLY AS THREE YEARS AGO JOBSHARING FLEXIBLE SCHEDULING AND DEPENDENTCARE AID WERE CONFINED LARGELY TO INDUSTRIES EMPLOYING LARGE NUMBERS OF SKILLED WOMEN INCLUDING HOSPITALS BANKING AND PHARMACEUTICALS BUT THOSE INDUSTRIES LOST GROUND ON THE 1993 LIST RELATIVE TO BIG OIL AND ANOTHER INDUSTRY THAT HAS LAGGED BEHIND THE TREND IN THE PAST AUTO MAKERS WITH TOYOTA MOTOR MFG USA INC WINNING A SLOT THIS YEAR AFTER OPENING A BIG 24HOUR CHILDCARE CENTER INCREASINGLY COMPANIES ARE RECOGNIZING THAT THESE ARE CORE ISSUES THAT HAVE TO DO WITH BEING AN EMPLOYER OF CHOICE MS HOLCOMB SAYS THE LIST IS ALMOST AS NOTEWORTHY FOR WHO WAS LEFT OFF AS FOR WHO IS ON IT SEVERAL COMPANIES THAT HAD BEEN INCLUDED FOR THE LIST'S ENTIRE SEVENYEAR HISTORY INCLUDING PROCTER & GAMBLE CO AND APPLE COMPUTER INC WERE ELIMINATED THIS YEAR COST CUTS TOOK A TOLL APPLE VANISHED AMID THE CORPORATE DOWNSIZING TREND MILTON MOSKOWITZ A MILL VALLEY CALIF FREELANCE WRITER AND SPECIALIST IN WORKPLACEQUALITY ISSUES WHO COMPILES THE LIST SAYS APPLE HAS BEEN DISTANCING ITSELF FROM WORKFAMILY ISSUES AND HE FAULTS THE COMPANY FOR FAILING TO EXPAND ITS CHILDCARE CENTER WHICH HAS HAD A LONG WAITING LIST MORE RECENTLY APPLE REDUCED FUNDING TO THE CENTER REQUIRING IT TO RAISE EMPLOYEES' TUITION BY 20 AND RAISE ENROLLMENT TO COVER COSTS AN APPLE SPOKESWOMAN SAYS WE HAVE NOT LESSENED OUR COMMITMENT TO FAMILY PROGRAMS ADDING THAT THE COMPANY HAS MAINTAINED ITS CHILDCARE AND SCHOOL REFERRAL SERVICES FITNESS CENTERS AND OTHER PROGRAMS THOUGH APPLE IS CUTTING COSTS MOST OF THE THINGS WORKING MOTHER LOOKS AT HAVE NOT CHANGED SHE SAYS PROCTER & GAMBLE WHICH BOASTED OF ITS 1992 WORKING MOTHER LISTING IN ITS LATEST ANNUAL REPORT FOR THE YEAR ENDED JUNE WAS REMOVED THIS YEAR BECAUSE IT DIDN'T HAVE A LOT OF SUPPORT FOR CHILD CARE AND FAILED TO EXTEND SOME OF ITS PROGRAMS BEYOND HEADQUARTERS MR MOSKOWITZ SAYS AFTER PROVIDING LEADERSHIP FOR MANY YEARS THEY SEEM TO HAVE STAGNATED HE ADDS A P&G SPOKESWOMAN SAYS THERE HAS BEEN NO CHANGE IN OUR ONGOING EXCELLENT BENEFITS AND WORKFAMILY POLICIES 9309160165 930916 POLITICS & POLICY THE CLINTON HEALTH PLAN TROUBLED WORKERS COMPENSATION SYSTEM APPARENTLY WON'T BE SCRAPPED FOR NOW BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH THE CLINTON ADMINISTRATION HAD CONSIDERED SCRAPPING THE TROUBLED WORKERS COMPENSATION SYSTEM AS PART OF ITS HEALTHCARE PROPOSAL THE DRAFT OF THE PLAN RELEASED LAST WEEK STOPS SHORT OF THAT CURRENTLY SEPARATE SYSTEMS HANDLE THE TREATMENT OF INJURIES THAT OCCUR ON AND OFF THE JOB A PERSON WHO BREAKS A FOOT AT WORK FILES A WORKERS COMPENSATION CLAIM BUT THE SAME PERSON WHO BREAKS A FOOT AT HOME FILES A HEALTH INSURANCE CLAIM EMPLOYERS THAT OFFER WORKERS BOTH FORMS OF COVERAGE BUY SEPARATE INSURANCE POLICIES FOR EACH THE ADMINISTRATION HAD ORIGINALLY CONSIDERED FOLDING THE WORKERS COMPENSATION SYSTEM NOW OVERSEEN BY THE STATES INTO THE MAINSTREAM HEALTHCARE SYSTEM AS A WAY OF SAVING MONEY IN RECENT YEARS WORKERS COMP COSTS HAVE RISEN AT AN ALARMING RATE EATING INTO EMPLOYER PROFITS AND ENCOURAGING STATES TO TILT COMPENSATION RULES AGAINST WORKERS AS AN INDUCEMENT TO KEEP EMPLOYERS IN THEIR STATES FRAUD HAS ALSO BEEN RAMPANT BUT IN THE OUTLINE OF THE CLINTON PLAN RELEASED LAST WEEK THE ADMINISTRATION OPTS FOR CERTAIN REFORMS SUCH AS ENCOURAGING TREATMENT OF WORKRELATED INJURIES THROUGH HEALTH MAINTENANCE ORGANIZATIONS BUT GOES NO FURTHER SOME PROPONENTS OF DOING AWAY WITH WORKERS COMP SAID THEY ARE STUNNED THAT THE PLAN DOESN'T GO FURTHER THEY HAD THE RIGHT IDEA BUT CHICKENED OUT SAID ROBERT HUNTER PRESIDENT OF THE NATIONAL INSURANCE CONSUMER ORGANIZATION OTHER WORKER ADVOCATES SAID THE CLINTON PLAN AT LEAST REPRESENTS A STEP IN THE RIGHT DIRECTION USE OF HMOS FOR WORKERS COMP IS EXPECTED TO SAVE SOME MONEY PROPONENTS ARGUE BUT NOT AS MUCH AS ELIMINATING THE SYSTEM WOULD THE CLINTON PLAN WOULD ALSO PREVENT EMPLOYERS FROM PICKING WHICH DOCTOR AN INJURED WORKER VISITS A PRACTICE NOW ALLOWED IN ABOUT HALF THE STATES WE STILL FAVOR FULL INTEGRATION BUT THIS CONTAINS SOME OF THE NECESSARY FEATURES SAID JAMES ELLENBERGER ASSISTANT DIRECTOR OF THE AFLCIO IN WASHINGTON WORKERS COMPENSATION BENEFITS COME IN TWO FORMS MEDICAL BENEFITS AND REPLACEMENT WAGES OF THE ROUGHLY 40 BILLION OR SO THE EMPLOYERS PAY EACH YEAR IN WORKERS COMPENSATION BENEFITS ABOUT 40 GOES TOWARD MEDICAL COSTS THUS WORKERS COMPENSATION INSURERS WOULD SEE 40 OF THEIR BUSINESS VANISH IF THE CURRENT SYSTEM WAS WIPED OUT THEY WOULD STILL BE IN THE BUSINESS OF PAYING REPLACEMENT WAGES INSURERS ARGUE THAT IT IS IMPOSSIBLE TO SEPARATE THE TWO SIDES OF WORKERS COMPENSATION THEY SAY CONTROL OVER AN INJURED WORKER'S MEDICAL CARE IS ESSENTIAL IN GETTING THE EMPLOYEE BACK ON THE JOB QUICKLY A REFORM PROGRAM THAT TOOK THE WORKERS COMP INSURER OUT OF THE BUSINESS OF PAYING FOR HEALTH CARE WOULD LEAD TO ENORMOUS INCREASES IN HOW MUCH THAT SAME INSURER WOULD PAY IN REPLACEMENT WAGES THE INTEGRATED APPROACH HAS FATAL FLAWS SAID GERALD MAATMAN CHAIRMAN OF KEMPER NATIONAL INSURANCE COS MR ELLENBERGER OF THE AFLCIO SAID THAT UNTIL THE SYSTEM IS FULLY INTEGRATED THAT IS AS LONG AS A WORKERS COMPENSATION INSURER INSTEAD OF A HEALTH INSURER PAYS FOR JOBRELATED INJURIES WORKERS COMPENSATION INSURERS CAN CONTINUE TO PRESSURE DOCTORS TO RUSH EMPLOYEES BACK TO WORK PREMATURELY FOR ITS PART THE WHITE HOUSE STILL FAVORS SCRAPPING THE CURRENT WORKERS COMPENSATION SYSTEM BUT WANTS TO WORK OUT TECHNICAL DETAILS BEFORE PUSHING THE IDEA THE CLINTON PLAN CALLS FOR CREATING A COMMISSION THAT WOULD DEVISE AN INTEGRATED SYSTEM AND REPORT BACK TO THE PRESIDENT WITHIN TWO YEARS WE REMAIN CONVINCED THAT FULL INTEGRATION IS THE RIGHT APPROACH SAID WALTER ZELMAN A SENIOR HEALTH ADVISER TO THE WHITE HOUSE SO WE'RE TAKING ONE LARGE STEP NOW AND PUTTING IN MOTION A PROCESS THAT SHOULD GET US THE REST OF THE WAY INDEED INSURERS FEAR THAT THE ADMINISTRATION MIGHT GO BACK TO SCRAPPING WORKERS COMP BEFORE THE PRESIDENT DELIVERS HIS HEALTHCARE SPEECH NEXT WEEK EVEN THE ADMINISTRATION'S PROPOSAL TO STUDY THE IDEA OF SCRAPPING WORKERS COMP BOTHERS THE INSURANCE INDUSTRY THAT BASICALLY PUTS THE ISSUE IN LIMBO FOR THE NEXT TWO YEARS SAID RICHARD PALCZYNSKI TRAVELERS CORP SENIOR VICE PRESIDENT BUT WHATEVER PRESIDENT CLINTON DOES SUPPORT FOR DOING AWAY WITH A SEPARATE WORKERS COMPENSATION SYSTEM IS GROWING AND SOME STATES ARE LIKELY TO ADOPT PLANS EVEN BEFORE WASHINGTON ACTS WE'LL PROBABLY SEE 10 OR 12 STATES HAVE A FULLY INTEGRATED SYSTEM IN FIVE YEARS SAID DAVID NORTH A CONSULTANT WITH JOHNSON & HIGGINS 9309160164 930916 INTERNATIONAL CREDIT SUISSE GETS MOSCOW UNIT ZURICH CREDIT SUISSE THE SWISS COMMERCIAL BANK THAT IS A UNIT OF CS HOLDING AG ESTABLISHED A SUBSIDIARY IN MOSCOW THAT WILL ENGAGE IN A RANGE OF BANKING ACTIVITIES THE SUBSIDIARY CREDIT SUISSE MOSCOW LTD HAS BEEN GRANTED A GENERAL LICENSE FROM THE RUSSIAN CENTRAL BANK THAT ALLOWS IT TO CONDUCT TRANSACTIONS IN FOREIGN CURRENCIES AS WELL AS IN RUBLES CREDIT SUISSE SAID THE UNIT WILL AT FIRST FOCUS ON COMMISSION BUSINESS AND HARDCURRENCY TRANSACTIONS OFFERING ACCOUNT AND INTERNATIONAL FUNDSTRANSFER SERVICES TO BANKS AND BUSINESSES NOT ONLY IN RUSSIA BUT ALSO IN OTHER COUNTRIES OF THE COMMONWEALTH OF INDEPENDENT STATES 9309160163 930916 MARKETING & MEDIA DONNELLEY PLANS POLISH VENTURE CHICAGO RR DONNELLEY & SONS CO SAID IT AGREED TO FORM A JOINT VENTURE WITH THE POLISHAMERICAN PRINTING ASSOCIATION LTD TO PRINT ADVERTISING INSERTS FOR POLISH MAGAZINES AND NEWSPAPERS POLISHAMERICAN PRINTING WHICH CURRENTLY PRINTS NEWSPAPERS AND COMMERCIAL MATERIAL IN KRAKOW AND GDANSK IS A UNIT OF THE POLISHAMERICAN ENTERPRISE FUND A PRIVATE CORPORATION CREATED BY THE US GOVERNMENT TO ENCOURAGE PRIVATESECTOR DEVELOPMENT IN POLAND DONNELLEY A COMMERCIAL PRINTER SAID THE VENTURE TO BE KNOWN AS DPA PRINTING CO SP ZOO PLANS TO BEGIN OPERATIONS IN THE THIRD QUARTER OF 1994 AT A 70000SQUAREFOOT FACILITY IN KRAKOW THAT WILL INITIALLY EMPLOY 120 PEOPLE 9309160162 930916 JENNIFER CONVERTIBLES EXPANSION PARAMUS NJ JENNIFER CONVERTIBLES INC SAID IT OPENED SEVEN LICENSED STORES ON THE WEST COAST IN THE SECOND HALF OF AUGUST AND WILL OPEN 14 MORE IN THE NEXT 30 DAYS THE OPENINGS ARE PART OF AN EXPANSION PROGRAM THAT CALLS FOR OPENING 50 TO 60 LICENSED STORES IN THE NEXT 12 MONTHS JENNIFER CONVERTIBLES WHICH CURRENTLY OPERATES 34 WHOLLY OWNED STORES AND 88 LICENSED STORES REPORTED TOTAL SALES OF 705 MILLION FOR THE 11 MONTHS ENDED IN JULY A 60 INCREASE FROM SALES OF 441 MILLION IN THE 1992 PERIOD 9309160161 930916 INTERNATIONAL PHONY MOTOROLA BATTERIES HONG KONG HONG KONG CUSTOMS OFFICIALS RAIDED MORE THAN 20 RETAIL OUTLETS SELLING COUNTERFEIT MOTOROLA INC CELLULAR PHONE BATTERIES THE SCHAUMBURG ILL ELECTRONICS CONCERN SAID ABOUT 250000 OF COUNTERFEIT PRODUCTS WAS CONFISCATED AND 20 PEOPLE WERE ARRESTED DURING THE SEPT 7 AND SEPT 9 RAIDS ACCORDING TO A MOTOROLA STATEMENT LAST FRIDAY CUSTOMS OFFICIALS ARRESTED THE PROPRIETOR OF A HONG KONGBASED TRADING COMPANY AND CONFISCATED 120000 OF COUNTERFEIT MOTOROLA BRAVO PAGERS THE COMPANY HAD REPORTEDLY SOLD MORE THAN 10000 COUNTERFEIT PAGERS A MONTH ON THE CHINESE MARKET SINCE JANUARY 1993 MOTOROLA SAID 9309160160 930916 LCI INTERNATIONAL'S NEW SERVICE DUBLIN OHIO LCI INTERNATIONAL INC HAS INTRODUCED A NEW BUSINESS SERVICE IT CALLS INTEGRITY FOR THE LONGDISTANCE MARKET IT OFFERS DISCOUNTS THAT REWARD CUSTOMERS FOR THEIR TOTAL LONGDISTANCE BUSINESS CALLS FOR ALL SERVICES IN A NEWS RELEASE THE COMPANY SAID THE SERVICE ALLOWS ALL OF THE CUSTOMER'S LONGDISTANCE TELECOMMUNICATIONS USAGE TO CONTRIBUTE TOWARD THEIR VOLUMEDISCOUNT LEVEL LCI INTERNATIONAL SAID THE SERVICE IS INTENDED TO SERVE THE 2500TO50000AMONTH BUSINESS CUSTOMER 9309160159 930916 WHAT'S NEWS WORLDWIDE CLINTON ACTED TO KEEP MOMENTUM GOING IN THE MIDEAST PEACE PROCESS THE PRESIDENT PHONED SYRIAN LEADER ASSAD JORDAN'S KING HUSSEIN AND BRITISH PRIME MINISTER MAJOR EXPLORING WAYS TO MAKE SURE THAT THE ISRAELIPLO ACCORD LEADS TO FURTHER PROGRESS CLINTON CLEARED THE WAY FOR 30 MILLION IN US AID FOR JORDAN AND TOLD ASSAD HE HOPED TO SEE AN AGREEMENT BETWEEN ISRAEL AND SYRIA IN TUNIS PLO CHIEF ARAFAT CONVENED MEETINGS ON HOW TO RALLY SUPPORT FOR HIS PACT WITH ISRAEL ISRAEL'S RABIN SAID THE PACT WITH THE PLO COULD LEAD TO PEACE WITH JORDAN AND LEBANON SOON BUT THE REAL TEST WILL BE THE PLO'S ABILITY TO CONTAIN TERRORISM SOME SCIENTISTS AND DOCTORS ARE RAISING QUESTIONS ABOUT THE NEED FOR UNIVERSAL LEAD SCREENING FOR CHILDREN AND FOR WIDESPREAD EFFORTS TO REMOVE LEAD PAINT FROM BUILDINGS WHILE LEAD DESERVES ATTENTION THEY ARGUE UNWARRANTED FEAR ABOUT IT IS FOSTERING POLICIES THAT USE UP FUNDS BETTER SPENT ON WORSE CHILD HAZARDS AMERICANS ARE CERTAIN THE US WOULD BE BETTER OFF IF ITS HEALTHCARE SYSTEM WERE REVAMPED ACCORDING TO A WALL STREET JOURNAL/NBC NEWS POLL BUT ONLY 20 BELIEVE THEY PERSONALLY WILL BE HELPED AND OVER HALF THINK CLINTON'S PLAN WILL FAIL TO SAVE THEM ANY MONEY SONOGRAMS OF HEALTHY WOMEN FAIL TO MAKE ANY SIGNIFICANT DIFFERENCE IN THE HEALTH OF THE BABIES THEY BEAR ACCORDING TO A RANDOMIZED STUDY OF MORE THAN 15000 PREGNANT WOMEN THE SLAYING OF A BRITISH TOURIST LED ONE BRITISH TABLOID TO WARN KEEP OUT OF FLORIDA SO FAR THERE IS LITTLE EVIDENCE OF MASS CANCELLATIONS BY TOURISTS BUT THAT HASN'T STOPPED NERVOUS SPECULATION BY FLORIDA OFFICIALS A 1960S ANTIWAR RADICAL SURRENDERED TO AUTHORITIES AFTER 23 YEARS IN HIDING KATHERINE ANN POWER 44 WHO WAS ON THE FBI'S MOSTWANTED LIST FROM 1970 TO 1984 PLEADED GUILTY TO REDUCED CHARGES OF MANSLAUGHTER AND ARMED ROBBERY IN CONNECTION WITH A 1970 BANK ROBBERY IN WHICH A BOSTON POLICEMAN WAS SLAIN SHE HAD BEEN LIVING IN OREGON THE US ANNOUNCED THAT IT HAS OBTAINED FOR THE FIRST TIME CREDIBLE EVIDENCE OF AN AMERICAN SERVICEMAN BEING CAPTURED IN THE KOREAN WAR AND THEN TRANSFERRED INTO THE SOVIET PRISON SYSTEM PROSECUTORS CLOSED THE BOOKS ON THE 1980S WEDTECH POLITICALCORRUPTION SCANDAL BY ANNOUNCING THEY WON'T PURSUE CASES AGAINST ANY REMAINING DEFENDANTS SAN FRANCISCO ATTORNEY E ROBERT WALLACH AND EXCONGRESSMAN ROBERT GARCIA WON'T BE RETRIED WHITE AMERICANS ARE LIVING LONGER AND EARNING MORE THAN BLACKS ACCORDING TO TWO GOVERNMENT REPORTS THOUGH THE LIFE EXPECTANCY FOR AMERICANS ROSE TO 754 FROM 737 YEARS BETWEEN 1980 AND 1990 WHITES HAD A BIGGER GAIN AND FOR 1991 COLLEGEEDUCATED WHITE MEN EARNED 6600 MORE THAN BLACK COLLEGE GRADUATES FOUR HIJACKERS FORCED A RUSSIAN PASSENGER JET FROM AZERBAIJAN TO LAND IN NORWAY WHERE THE MEN DEMANDED ASYLUM AND THEN SURRENDERED THE JET WAS CARRYING 55 PEOPLE INCLUDING SIX CREW MEMBERS SOMALI GUNMEN WOUNDED 11 PEACEKEEPERS IN A DAYLIGHT MORTAR ATTACK ON A UN COMPOUND IN MOGADISHU A UN SPOKESMAN SAID TWO ITALIAN PEACEKEEPERS MEANWHILE WERE SHOT DEAD WHILE JOGGING THE MARINE CORPS TEMPORARILY GROUNDED ALL 124 OF ITS SUPER COBRA ATTACK HELICOPTERS FOLLOWING TWO CRASHES IN CALIFORNIA LAST WEEK THAT KILLED SIX MEN A MARINE SPOKESMAN SAID IN WASHINGTON CROATS ACCUSED BOSNIAN GOVERNMENT SOLDIERS OF KILLING 29 CIVILIANS TUESDAY IN THE VILLAGE OF UZDOL IN CENTRAL BOSNIA HEAVY FIGHTING WAS REPORTED AROUND MOSTAR WHERE 55000 MUSLIMS ARE UNDER SIEGE BY CROATS GEORGIAN LEADER SHEVARDNADZE RETURNED TO OFFICE AFTER RESIGNING TUESDAY DURING A CONFRONTATION WITH LAWMAKERS HE WITHDREW HIS RESIGNATION AFTER PARLIAMENT VOTED TO APPROVE A STATE OF EMERGENCY 9309160158 930916 NASSCO UNIT GETS NAVY CONTRACT WASHINGTON AP THE NAVY AWARDED A 13 BILLION CONTRACT TO NATIONAL STEEL & SHIPBUILDING CO SAN DIEGO TO CONSTRUCT SIX STRATEGIC SEALIFT SHIPS THE PENTAGON ANNOUNCED NATIONAL STEEL IS A SUBSIDIARY OF NASSCO HOLDINGS INC THE SHIPS WILL HELP STOCKPILE MILITARY SUPPLIES OVERSEAS BEFORE THEY ARE NEEDED THERE AND WILL BE CAPABLE OF RUSHING PERSONNEL AND EQUIPMENT SUCH AS VEHICLES AND HELICOPTERS ABROAD IN THE EVENT OF A CONFLICT THE WORK WILL BE PERFORMED IN SAN DIEGO AND IS EXPECTED TO BE COMPLETED BY 2001 THE PENTAGON SAID 9309160157 930916 INTERNATIONAL SOUTH AFRICAN GOLD OUTPUT JOHANNESBURG SOUTH AFRICA SOUTH AFRICAN GOLD OUTPUT GREW 06 TO 1640000 OUNCES IN AUGUST FROM 1630000 OUNCES A YEAR EARLIER THE CHAMBER OF MINES SAID AUGUST'S GOLD OUTPUT WAS UP 19 FROM THE 1610000 OUNCES PRODUCED IN JULY 9309160156 930916 TECHNOLOGY & HEALTH JAPANESE SCIENTISTS ENJOYING THE FRUITS OF SOME BITTER LABOR PAIR DISCOVER A COMBINATION OF SUBSTANCES THAT HELP BLOCK UNPLEASANT TASTES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IF TWO JAPANESE SCIENTISTS HAVE THEIR WAY YOU'LL NEVER AGAIN NEED THAT SPOONFUL OF SUGAR TO HELP THE MEDICINE GO DOWN KENZO KURIHARA A MOLECULAR PHYSIOLOGIST AT HOKKAIDO UNIVERSITY IN SAPPORO JAPAN AND YOSHIHISA KATSURAGI A RESEARCHER AT HOUSEHOLDPRODUCTS MAKER KAO CORP HAVE DISCOVERED A CHEMICAL THAT INHIBITS PEOPLE'S ABILITY TO TASTE BITTER SUBSTANCES ALL TASTE SENSATIONS ARE ACTUALLY COMBINATIONS OF FOUR FUNDAMENTAL TYPES OF TASTE SWEET SOUR SALTY AND BITTER SCIENTISTS SUCH AS DRS KURIHARA AND KATSURAGI HAVE LONG SOUGHT WAYS OF SELECTIVELY SUPPRESSING ANY ONE OF THESE TASTES ESPECIALLY BITTER IN ORDER TO IMPROVE THE TASTE OF FOOD AND TO MASK THE TASTE OF SOME MEDICINES ON A CHEMICAL LEVEL MOST BITTER SUBSTANCES TEND TO BE HYDROPHOBIC WHICH MEANS THEIR MOLECULES DON'T ASSOCIATE READILY WITH WATER MOLECULES SO THE RESEARCHERS BEGAN TESTING A VARIETY OF HYDROPHOBIC CHEMICALS KNOWN AS PHOSPHOLIPIDS UNDER THE ASSUMPTION THAT MUCH LIKE BITTER SUBSTANCES THEMSELVES THESE CHEMICALS MIGHT TEND TO STICK TO THE TONGUE'S RECEPTORS FOR BITTER TASTE IF THAT HAPPENED THEY REASONED THE CHEMICALS MIGHT BLOCK THE RECEPTOR TO ACTUAL BITTER TASTES THE SCIENTISTS EVENTUALLY FOUND A PHOSPHOLIPID KNOWN AS PHOSPHATIDIC ACID OR PA THAT SUITED THEIR PURPOSE THEN THEY RAN INTO THEIR SECOND HURDLE HYDROPHOBIC CHEMICALS LIKE PA DON'T DISSOLVE IN WATER MAKING IT DIFFICULT TO COMBINE THEM WITH OTHER SUBSTANCES FINALLY THE SCIENTISTS HIT ON THE IDEA OF CHEMICALLY COMBINING PA WITH A PROTEIN CALLED BETA LACTOGLOBULIN OR LG A STRATEGY THAT YIELDED A WATERSOLUBLE SUBSTANCE THEY CALLED PALG TESTS ON FROGS WHICH HAVE A TASTE NERVE CALLED THE GLOSSOPHARYNGEAL NERVE WHOSE RESPONSE CAN BE MEASURED SHOWED THAT THE RIGHT CONCENTRATION OF PALG CAN SUPPRESS AS MUCH AS 99 OF A BITTER TASTE WITHOUT AFFECTING OTHER TASTES SUCH AS SALT FOLLOWUP STUDIES ON 10 HUMAN SUBJECTS SHOWED A SLIGHTLY LESS EFFECTIVE BUT STILL SIGNIFICANT SUPPRESSION OF BITTER TASTE THE SCIENTISTS REPORT THEIR WORK IN TODAY'S ISSUE OF THE BRITISH SCIENTIFIC JOURNAL NATURE DR KURIHARA WHO HAS APPLIED FOR A PATENT ON THE WORK SAID PALG COULD EASILY BE INTRODUCED INTO FOODS AND MEDICINES AS THE TWO CHEMICALS IN THE SUBSTANCE OCCUR NATURALLY ONE IN SOYBEANS AND THE OTHER IN MILK THE SUPPRESSION OF TASTE DOESN'T LAST LONG EITHER HE SAID BECAUSE PALG IS EASILY WASHED AWAY WITH A DRINK OF WATER 9309160153 930916 TWOTHIRDS OF CHILDREN IN US READ BELOW THEIR GRADE LEVEL STUDY FINDS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE THAN TWOTHIRDS OF US CHILDREN CAN'T READ UP TO THEIR GRADE LEVEL ACCORDING TO A NEW EDUCATION DEPARTMENT STUDY IN A MORE SOPHISTICATED READINGCOMPREHENSION TEST THE EDUCATION DEPARTMENT FOUND THAT ONLY 25 OF FOURTHGRADERS HAVE MASTERED READING MATERIAL FOR THEIR GRADE EIGHTHGRADERS AND 12THGRADERS AREN'T DOING MUCH BETTER WITH ONLY 28 AND 37 RESPECTIVELY ABLE TO COMPETENTLY UNDERSTAND TEXTS DESIGNED FOR THEM A LARGE MINORITY OF CHILDREN CAN'T EVEN GRASP THE BASIC MEANING OF WHAT THEY READ SOME 41 OF FOURTHGRADERS FOR INSTANCE DIDN'T EVEN UNDERSTAND THE GIST OF TEXTS THE READING REPORT CARD FOR THE NATION AND THE STATES WHICH TESTS ALMOST 140000 STUDENTS IS AN ANNUAL EXERCISE BY THE DEPARTMENT BUT THE LATEST VERSION USES A FAR MORE SOPHISTICATED SYSTEM OF ASSESSMENT DESIGNED TO TEST MORE ACCURATELY ACTUAL READING ABILITIES AND HOLD STUDENTS TO MORE RIGOROUS STANDARDS IN THE PAST FOR INSTANCE THE TEST WAS STRICTLY MULTIPLE CHOICE BUT NOW STUDENTS ALSO MUST WRITE RESPONSES TO QUESTIONS AND READ LONGER PASSAGES THE NEW FINDINGS COME ONE WEEK AFTER THE EDUCATION DEPARTMENT ANNOUNCED THAT 90 MILLION AMERICANS CAN BARELY READ OR WRITE IN ITS LATEST STUDY THE DEPARTMENT ALSO ANALYZED WHY SOME STUDENTS DO BETTER THAN OTHERS IT FOUND THAT STUDENTS WHO DID BETTER ON THE TESTS HAD TEACHERS WHO EMPHASIZED READING LITERATURE OVER DOING WORKBOOK EXERCISES STUDENTS ALSO HAD HIGHER READING SCORES IF THEY HAD AT LEAST WEEKLY DISCUSSIONS WITH FRIENDS OR FAMILY ON THE OTHER HAND STUDENTS WHO WATCHED MORE THAN SIX HOURS OF TELEVISION A NIGHT HAD MUCH LOWER READING SCORES THAN THEIR COUNTERPARTS IF I HAVE ONE MESSAGE TO PARENTS TODAY IT IS SIMPLY THIS FOLLOW RILEY'S RULE DECLARED EDUCATION SECRETARY RICHARD RILEY SLOW DOWN THE PACE OF YOUR LIVES TO HELP YOUR CHILDREN GROW IF PARENTS TURN OFF THEIR TELEVISION SETS HE SAID WE WILL TRANSFORM THIS NATION SOME 20 OF FOURTHGRADERS SAID THEY WATCHED SIX OR MORE HOURS OF TELEVISION A NIGHT AS DID 14 OF EIGHTHGRADERS AND 6 OF 12THGRADERS NEARLY ONEFOURTH OF ALL EIGHTHGRADERS AND 12THGRADERS MEANWHILE SAID THEY HARDLY EVER READ FOR FUN THE STUDY ALSO FOUND THAT GIRLS HAD A HIGHER READING PROFICIENCY THAN BOYS AND THAT WHITE STUDENTS AND ASIAN STUDENTS ACHIEVED HIGHER READING SCORES THAN HISPANIC BLACK AND AMERICAN INDIAN STUDENTS 9309160152 930916 COMMODITIES CORN AND SOYBEAN PRICES JUMP AS REPORT SHOWS FROST CURBED GROWING SEASON IN SOME STATES BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO CORN AND SOYBEAN PRICES JUMPED IN THE WAKE OF REPORTS THAT AN EARLY FROST CUT SHORT THE GROWING SEASON IN PARTS OF MINNESOTA IOWA NEBRASKA AND SOUTH DAKOTA IN CHICAGO BOARD OF TRADE TRADING THE NOVEMBERDELIVERY SOYBEAN CONTRACT ROSE 475 CENTS A BUSHEL TO SETTLE AT 6315 A BUSHEL THE SEPTEMBER CORN CONTRACT ROSE 375 CENTS A BUSHEL TO 23275 A BUSHEL ANALYSTS ARE DIVIDED OVER THE AMOUNT OF DAMAGE WHICH WON'T BE CLEAR FOR SEVERAL DAYS DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO SAID THE INJURY TO PLANTS WAS PROBABLY COSMETIC WITHOUT ANY SIGNIFICANT DROP IN YIELD POTENTIAL BUT BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL IS ESTIMATING THAT YESTERDAY MORNING'S FROST KILLED ENOUGH PLANTS TO SHRINK THE POTENTIAL SIZES OF THE CORN HARVEST BY ROUGHLY 120 MILLION BUSHELS AND THE SOYBEAN HARVEST BY ABOUT 30 MILLION BUSHELS THE CROPS ARE DESIGNED TO REACH MATURITY AND THUS THEIR FULLEST POTENTIAL YIELD BEFORE FROST USUALLY ENDS THE GROWING SEASONS IN LATE SEPTEMBER AND EARLY OCTOBER BUT MANY UPPER MIDWEST FIELDS WON'T REACH MATURITY FOR SEVERAL WEEKS BECAUSE EXCESSIVE RAIN EARLIER THIS YEAR DELAYED PLANTING AND SLOWED DEVELOPMENT THE AGRICULTURE DEPARTMENT LAST WEEK PROJECTED US FARMERS TO HARVEST 723 BILLION BUSHELS OF CORN AND 191 BILLION BUSHELS OF SOYBEANS THE DEPARTMENT WARNED THAT CROPS WERE PARTICULARLY VULNERABLE TO FROST DAMAGE THIS YEAR THE EFFECT OF THE CROP DAMAGE COULD BE MAGNIFIED IF IT PROMPTS FARMERS TO APPLY FOR AN ALTERNATIVE FARM PROGRAM THERE WERE WIDESPREAD REPORTS THAT FARMERS IN SEVERAL MIDWEST COUNTIES WERE WAITING IN LONG LINES TO APPLY FOR A PROGRAM THAT WOULD PAY THEM UP TO 92 OF THEIR GOVERNMENT BENEFITS IN EXCHANGE FOR DESTROYING THE CORN CROP ON THEIR ELIGIBLE ACREAGE THE GOVERNMENT USUALLY OFFERS THE SOCALLED 092 PROGRAM TO FARMERS IN THE SPRING AS PART OF A STRATEGY TO PREVENT BURDENSOME STOCKPILES THIS YEAR HOWEVER THE SIGNUP PERIOD WAS EXTENDED INTO SEPTEMBER SO THAT HARDHIT FARMERS COULD REAP MOST OF THEIR CROPPROGRAM BENEFITS EVEN IF THEIR CROP PRODUCTION IS LOW METEOROLOGISTS ARE ALSO DIVIDED OVER WHETHER THE COOLERTHANNORMAL MIDWEST WEATHER WILL CONTINUE THIS WEEK SOME FORECASTERS EXPECT ANOTHER KILLING FREEZE THIS WEEKEND BUT THE NATIONAL WEATHER SERVICE'S 30DAY FORECAST CALLS FOR ABOVENORMAL MIDWEST TEMPERATURES GRAIN PRICES WERE ALSO SUPPORTED BY REPORTS THAT RUSSIA IS CONTINUING TO BUY US CROPS WITH ITS PREVIOUSLY AWARDED FOODAID PACKAGE ACCORDING TO TRADERS MOSCOW IS INTERESTED IN ACQUIRING 550000 METRIC TONS OF US CORN TODAY RUSSIA WAS REPORTEDLY IN THE MARKET AS RECENTLY AS YESTERDAY FOR 120000 METRIC TONS OF SOYBEAN MEAL AND 90000 METRIC TONS OF WHEAT TRADERS DON'T EXPECT MANY MORE SIGNIFICANT WHEAT PURCHASES BY MOSCOW WHICH IS USUALLY A LARGE BUYER OF US WHEAT RUSSIAN OFFICIALS ARE HOPING THAT PROSPECTS FOR A LARGE GRAIN HARVEST THERE THIS YEAR WILL ALLOW THE COUNTRY TO REDUCE ITS DEPENDENCE ON FOREIGN GRAIN LOANS RUSSIAN OFFICIALS REPORTEDLY HAVE SAID MOSCOW WON'T BUY MUCH MORE CANADIAN WHEAT FOR THE REST OF THE YEAR US WHEAT PRICES WERE ALSO SUPPORTED BY REPORTS THAT THE CLINTON ADMINISTRATION IS NEARING A DECISION ON WHETHER TO LIMIT US IMPORTS OF CANADIAN WHEAT FARM GROUPS IN NORTHERN PLAINS STATES HAVE BEEN PUSHING FOR SOME SORT OF RESTRICTION AMID SPECULATION THAT ATTRACTIVELY PRICED CANADIAN WHEAT IS FLOWING ACROSS THE BORDER INTO US GRAIN ELEVATORS THE CONCERN IS THAT CANADIAN GRAIN IS COMMINGLING WITH US CROPS THAT ARE SLATED FOR SHIPMENT OVERSEAS WITH THE HELP OF US EXPORT SUBSIDIES THAT WOULD MEAN CANADIANGROWN WHEAT IS DISPLACING US WHEAT IN THE EXPORT SUBSIDY PROGRAM THE WHEAT CONTRACT FOR SEPTEMBER DELIVERY AT THE CHICAGO BOARD OF TRADE ROSE 45 CENTS A BUSHEL TO 29875 A BUSHEL IN OTHER COMMODITY MARKETS ENERGY US OIL DEMAND AN IMPORTANT BAROMETER OF ECONOMIC ACTIVITY IS SHOWING SOME MEASURABLE GROWTH AFTER ITS LONG SLUGGISHNESS NEW OIL INDUSTRY FIGURES RELEASED BY THE AMERICAN PETROLEUM INSTITUTE SHOW THAT DEMAND AS MEASURED BY DELIVERIES OF PETROLEUM PRODUCTS FROM PRIMARY STORAGE ROSE 14 IN AUGUST FROM A YEAR EARLIER THE API ESTIMATED AUGUST DEMAND AT SLIGHTLY MORE THAN 172 MILLION BARRELS A DAY AMONG MAJOR PETROLEUM PRODUCTS DISTILLATE FUEL LED LAST MONTH'S GAINS DISTILLATES INCLUDING HOME HEATING OIL WERE UP 46 YEARTOYEAR USE OF GASOLINE CLIMBED 21 IN THE LATEST MONTH TO NEARLY 77 MILLION BARRELS A DAY AFTER HAVING BEEN FLAT FOR MUCH OF THE YEAR EVEN RESIDUAL OR HEAVY FUEL OIL HAD A HEALTHY INCREASE IN AUGUST FOR THE SECOND MONTH IN A ROW AFTER MONTHS OF DECLINE THE GAINS PARTICULARLY FOR GASOLINE ARE IN LINE WITH SOME OIL ANALYSTS' RECENT BULLISH ESTIMATES OF FUEL CONSUMPTION BASED ON THEIR INTERPRETATIONS OF THE WEEKLY REPORTS WHICH THE API ALSO ISSUES ANALYSTS SUCH AS ROBERT BOSLEGO OF WINCHESTER MASS HAVE BEEN INSISTING FOR WEEKS THAT GASOLINE DEMAND WAS STRONGER THAN GENERALLY BELIEVED HE SAID DEMAND FOR THE FUEL IS GROWING WELL ABOVE THE 1 RATE SEEN IN THE FIRST HALF OF 1993 AND MAY BE APPROACHING 2 IN THE SECOND HALF IN ANOTHER ANALYSIS OF THE API'S LATEST WEEKLY FIGURES OIL ANALYSTS AT BRODY WHITE & CO ESTIMATED DEMAND FOR MOTOR FUEL DURING THE PAST 13 WEEKS ROUGHLY EQUAL TO THE DRIVING SEASON WAS 36 HIGHER THAN THAT OF A YEAR EARLIER NEITHER THE API'S MONTHLY REPORT NOR ITS LATEST WEEKLY RELEASE ON US OIL INVENTORIES HAD MUCH OF AN IMPACT ON PETROLEUM TRADING YESTERDAY ALTHOUGH HEATINGOIL FUTURES WERE FRACTIONALLY HIGHER ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL WAS LOWER WITH THE OCTOBER CONTRACT SETTLING DOWN 10 CENTS A BARREL AT 1686 NATURALGAS FUTURES ALSO FELL WITH THE OCTOBER CONTRACT DOWN 34 CENTS TO 2123 PER MILLION BRITISH THERMAL UNITS BUT THE API AGAIN CAUTIONED AGAINST PUTTING MUCH EMPHASIS ON THE CHANGES IN STATISTICS WEEKTOWEEK OR EVEN MONTHTOMONTH DESPITE AUGUST'S LARGERTHANUSUAL INCREASES FOR SEVERAL MAJOR PRODUCTS YEARTODATE FIGURES SUGGEST MORE MODERATE RATES OF GROWTH MORE IN LINE WITH WHAT WE BELIEVE HAS BEEN OCCURRING FOR ACTUAL CONSUMPTION THE API SAID GASOLINE DELIVERIES IT SAID HAVE GROWN ONLY ABOUT 1 FOR THE FIRST EIGHT MONTHS AND TOTAL PETROLEUM DEMAND SO FAR THIS YEAR AVERAGED SLIGHTLY UNDER 17 MILLION BARRELS A DAY ONLY A MARGINAL 02 HIGHER THAN THAT OF THE 1992 MONTHS 9309160151 930916 SPAR AEROSPACE INSERTECH PACT MISSISSAUGA ONTARIO SPAR AEROSPACE LTD SAID IT CONTRACTED TO PROVIDE A TRANSMISSION SYSTEM TO INSERTECH INTERNATIONAL CORP OF TAIWAN TO TRANSMIT FINANCIAL DATA VIA SATELLITE THE AEROSPACE COMPANY SAID IT AGREED TO PROVIDE A CENTRAL HUB AND 151 RECEIVERS IT DIDN'T DISCLOSE TERMS OF THE CONTRACT SPAR SAID INSERTECH PLANS TO DISTRIBUTE FINANCIAL INFORMATION IN CHINA TAIWAN AND HONG KONG BY BROADCASTING TO A SATELLITE FROM A STATION NEAR BEIJING IT SAID INSERTECH WILL DISPLAY ITS INFORMATION IN CHINESE AND HOPES TO ATTRACT CHINESE INVESTORS AND BROKERS 9309160150 930916 PEGASUS GOLD TO LEND 18 MILLION SPOKANE WASH PEGASUS GOLD INC SAID IT HAS REACHED AN AGREEMENT TO PROVIDE 18 MILLION IN CAPITAL TO VANCOUVERBASED GOLDBELT RESOURCES LTD TO BE USED TO DEVELOP A GOLD PROJECT IN KAZAKHSTAN THE LOAN WILL BE CONVERTIBLE TO SHARES OF GOLDBELT AND IF FULLY CONVERTED WILL GIVE PEGASUS ABOUT 67 OF GOLDBELT'S COMMON SHARES OUTSTANDING THE DEAL IS SUBJECT TO A FINAL AGREEMENT APPROVAL BY THE BOARDS OF BOTH COMPANIES AND DUE DILIGENCE REVIEWS THE LENINOGORSK PROJECT WILL INVOLVE REMILLING TAILINGS FROM AN OLD GOLD MINEEND 9309160149 930916 WHO'S NEWS ITT NAMES THIRD SHERATON PRESIDENT IN SEVEN MONTHS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP NAMED THE TOP EXECUTIVE OF ITS DIRECTORIES AND EDUCATION BUSINESS TO HEAD ITT SHERATON INC THE THIRD PRESIDENT OF THE HOTEL UNIT IN SEVEN MONTHS THE NEW HOTEL CHIEF IS DANIEL P WEADOCK 54 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITT COMMUNICATIONS & INFORMATIONS SERVICES INC HE WILL BE PRESIDENT AND CHIEF OPERATING OFFICER OF ITT SHERATON WHICH IS BASED IN BOSTON MR WEADOCK SUCCEEDS JOHN V GIOVENCO WHO RESIGNED IN JULY AFTER ONLY FIVE MONTHS WITH THE COMPANY MR GIOVENCO A 21YEAR VETERAN OF HILTON HOTELS CORP HAD BEEN EXPECTED TO SPEARHEAD ITT SHERATON'S BID TO ENTER THE GAMBLING BUSINESS UNLIKE MR GIOVENCO MR WEADOCK WON'T HANDLE ANY GAMBLING OPERATIONS AND HE HASN'T ANY HOTEL EXPERIENCE MR WEADOCK WILL DIRECT DAYTODAY OPERATIONS FOR ALL NONGAMBLING ACTIVITIES WHICH CURRENTLY CONTRIBUTE MOST OF SHERATON'S 6 BILLION IN ANNUAL BUSINESS JOHN KAPIOLTAS 66 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SHERATON WILL CONTINUE TO DIRECT GAMBLING OPERATIONS HE WAS SUCCEEDED BY MR GIOVENCO AS SHERATON'S PRESIDENT LAST FEBRUARY ANALYSTS SPECULATED THAT MR WEADOCK'S APPOINTMENT COULD SIGNAL A RETREAT BY ITT IN ITS BID TO ENTER THE GAMBLING INDUSTRY IN RECENT MONTHS THE COMPANY HAS STRUGGLED IN ITS EFFORT TO OPEN GAMBLING FACILITIES IT HAS FAILED IN BIDDING FOR THREE CASINO PROJECTS IN AUSTRALIA AFTER PURCHASING A STAKE IN BALLY'S GRAND CASINO IN NEVADA ITT SQUABBLED WITH BALLY'S MANAGEMENT AND CREDITORS AND NOW WANTS TO SELL ITS STAKE AND THE STATUS OF A RIVERBOAT OPERATION IN NEW ORLEANS HAS BEEN OFFAGAIN ONAGAIN ITT PLANS TO CLOSE ON ITS PURCHASE OF DESERT INN IN LAS VEGAS IN OCTOBER ITT INSISTS MOREOVER THAT IT IS STILL SERIOUS ABOUT GETTING INTO GAMBLING THIS APPOINTMENT IS IN NO WAY AN INDICATION OF A RETREAT FROM OUR VERY SPECIFIC STRATEGY OF OUR EXPANSION INTO THE GAMING INDUSTRY AS A NATURAL EXTENSION OF OUR WORLDWIDE HOSPITALITY AN ITT SPOKESMAN SAID MR WEADOCK WHO JOINED ITT IN 1961 SAYS HE JOINS SHERATON WITH A CLEAN PAPER AND HE HASN'T ANY IMMEDIATE PLANS FOR THE UNIT SINCE TAKING OVER ITT COMMUNICATIONS & INFORMATION SERVICES IN 1988 MR WEADOCK HAS BUILT THAT BUSINESS FROM 701 MILLION ANNUAL REVENUE TO ABOUT 113 BILLION REVENUE FOR 1992 ITT SAID THE DIVISION WHICH SELLS TELEPHONE DIRECTORIES IN EUROPE AND RUNS TECHNICAL COLLEGES IN THE US WAS THE MOST PROFITABLE AMONG ITS EIGHT BUSINESS UNITS IN 1992 ITT WITH TOTAL ANNUAL REVENUE OF MORE THAN 21 BILLION HAS INTERESTS IN FINANCIAL SERVICES INSURANCE TIMBER AND DEFENSE PAULINE YOSHIHASHI IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9309160148 930916 TECHNOLOGY BRISTOLMYERS DRUG IS CLEARED PRINCETON NJ BRISTOLMYERS SQUIBB CO SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ITS MEGACE ORAL SUSPENSION WHICH CAN BE USED TO TREAT THE SUBSTANTIAL WEIGHT LOSS DUE TO AIDS THE PHARMACEUTICAL AND CONSUMER PRODUCTS COMPANY SAID THE DRUG IS A SYNTHETIC DERIVATIVE OF THE NATURALLY OCCURRING STEROID HORMONE PROGESTERONE BRISTOLMYERS SAID MEGACE CAN BE USED TO TREAT ANOREXIA CACHEXIA AND THE UNEXPLAINED SIGNIFICANT WEIGHT LOSS IN PEOPLE WITH AIDS WHICH MEANS A REDUCTION IN BODY WEIGHT BY MORE THAN 10 9309160147 930916 RESCARE WINS CONTRACT LOUISVILLE KY RESCARE INC SAID IT WAS AWARDED A CONTRACT BY NEBRASKA TO PROVIDE RESIDENTIAL AND SUPPORTEDLIVING SERVICES FOR 340 MENTALLY RETARDED PEOPLE THE NINEMONTH CONTRACT EFFECTIVE OCT 1 IS VALUED AT ABOUT 6 MILLION IT WOULD BE VALUED AT 8 MILLION A YEAR IF IT IS RENEWED THE COMPANY SAID FOR 1992 RESCARE HAD REVENUE OF ABOUT 869 MILLION THE COMPANY PROVIDES RESIDENTIAL AND SUPPORTEDLIVING SERVICES TO ABOUT 2700 PEOPLE IN NINE STATES 9309160146 930916 PENNZOIL COMPLETES OFFERING HOUSTON PENNZOIL CO COMPLETED ITS PUBLIC OFFERING OF FIVE MILLION COMMON SHARES AT A PRICE OF 6250 A SHARE PROCEEDS OF ABOUT 3029 MILLION PLUS 109 MILLION OF CASH WILL BE USED TO REDEEM CERTAIN DEBT THE ISSUES TO BE REDEEMED ARE 111 MILLION PRINCIPAL AMOUNT OF 10 DEBENTURES DUE 2011 ALL 120 MILLION PRINCIPAL AMOUNT OF 10 1/8 DEBENTURES DUE 2011 AND ABOUT 607 MILLION OF THE 100 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 9 DEBENTURES DUE 2017 PENNZOIL SAID IT EXPECTS ITS 1994 EARNINGS PER SHARE TO INCREASE ABOUT 114 AS A RESULT OF ITS DEBT RESTRUCTURING WHICH BEGAN IN MID1992 IN 1992 THE COMPANY EARNED 1282 MILLION OR 316 A SHARE AFTER CHARGES AND AN ACCOUNTING CHANGE ON 24 BILLION IN REVENUE THE OFFERING WAS MANAGED BY LEHMAN BROTHERS AND MERRILL LYNCH & CO PENNZOIL AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID IT HAD ABOUT 40 MILLION COMMON SHARES OUTSTANDING BEFORE THE OFFERING 9309160145 930916 ROYAL BANK OF CANADA CUTS RATE OTTAWA ROYAL BANK OF CANADA A MAJOR CANADIAN BANK LOWERED ITS PRIME LENDING RATE ONEQUARTER PERCENTAGE POINT TO 575 EFFECTIVE TODAY THE REDUCTION BROUGHT ROYAL BANK'S PRIME RATE TO THE SAME LEVEL AS THOSE OF CANADA'S OTHER MAJOR BANKS ROYAL BANK RAISED ITS PRIME RATE TO 6 LAST MONTH FOLLOWING A TEMPORARY UPSWING IN CANADIAN SHORTTERM INTEREST RATES THE PRIME RATE IS A BENCHMARK FOR VARIOUS LENDING CHARGES 9309160144 930916 QMS PLANS 12 STAFF REDUCTION MOBILE ALA QMS INC CITING EXCESSIVE EXPENSES SAID IT PLANS TO LAY OFF 200 PEOPLE WORLDWIDE OR 12 OF ITS WORK FORCE THE MOVE THE COMPANY SAID AFFECTS EMPLOYEES ACROSS THE BOARD QMS MAKES DOCUMENTPROCESSING PRODUCTS THE RESULTING CONSOLIDATION WILL COST AN ESTIMATED 42 MILLION WHICH QMS SAID WILL REDUCE QUARTERLY EARNINGS BY 26 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDING OCT 1 IN THE YEAREARLIER PERIOD THE COMPANY REPORTED A LOSS OF 13 MILLION OR 12 CENTS A SHARE ON SALES OF 705 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE QMS CLOSED AT 8 A SHARE DOWN 125 CENTS 9309160143 930916 HEALTH STUDY INDICATES FETAL SONOGRAM IS OVERUSED AID BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL DOCTORS' HABIT OF ORDERING ROUTINE SONOGRAMS OF HEALTHY PREGNANT WOMEN FAILS TO MAKE ANY SIGNIFICANT DIFFERENCE IN THE HEALTH OF THE BABIES THEY BEAR A LARGESCALE EXPERIMENT FOUND THE FINDING BASED ON A RANDOMIZED STUDY OF MORE THAN 15000 PREGNANT WOMEN INDICATES THAT RESTRICTING USE OF ULTRASOUND IMAGING OR SONOGRAMS TO HIGHRISK CASES COULD CUT AT LEAST 1 BILLION FROM THE NATION'S HEALTH BILL WITHOUT HURTING THE QUALITY OF CARE BUT LIMITING THE USE OF SONOGRAMS EVEN IN THE FACE OF NATIONAL CONCERN OVER THE COST OF HEALTH CARE IS CERTAIN TO BE A KNOTTY CHALLENGE THE PROCEDURE IS PRESUMABLY SAFE AND IT YIELDS FOR PROSPECTIVE PARENTS BOTH COMFORT AND A PICTURE OF THE FETUS THAT OFTEN WINDS UP IN FAMILY PHOTO ALBUMS AS BABY'S FIRST PICTURE DOCTORS LIKE TO ORDER THE TEST ABOUT MIDWAY THROUGH A PREGNANCY BECAUSE IT PROVIDES A GOOD ESTIMATE OF THE AGE OF THE FETUS THEREBY HELPING THE DOCTOR MANAGE THE REST OF THE PREGNANCY I CAN'T AFFORD TO USE ULTRASOUND IN ROUTINE CASES SAID ANITA NELSON MEDICAL DIRECTOR AT THE WOMEN'S HEALTH CARE CLINIC A PUBLICLY FUNDED FACILITY ASSOCIATED WITH HARBORUCLA MEDICAL CENTER TORRANCE CALIF BUT THERE ARE MANY PHYSICIANS IN THIS COUNTRY WHO CAN'T AFFORD NOT TO BECAUSE OF PATIENT PRESSURE IN ADDITION KLEIN BIOMEDICAL CONSULTANTS INC NEW YORK CITY SAYS ABOUT 60 OF PRACTICING OBSTETRICIANGYNECOLOGISTS HAVE ULTRASOUND MACHINES IN THEIR OFFICES WHERE THE ECONOMIC INCENTIVE IS TO USE THEM WORRIES ABOUT MALPRACTICE SUITS ALSO PROMPT DOCTORS TO ORDER SONOGRAMS THUS USE OF THE 200 PROCEDURE HAS PROLIFERATED DESPITE LONGSTANDING FEDERAL ADVISORIES AND MEDICALSOCIETY RECOMMENDATIONS AGAINST ROUTINE SCREENINGS IN MANY WAYS USE OF SONOGRAMS OFFERS A CASE STUDY IN THE DIFFICULTY OF APPLYING A BROAD COSTCONTAINMENT POLICY TO INDIVIDUAL PROCEDURES WITH THE WAY MEDICAL CARE IS CURRENTLY DELIVERED IN THIS COUNTRY THERE ARE FEW INCENTIVES TO DISCOURAGE USE OF THESE TESTS SAID BERNARD G EWIGMAN ASSOCIATE PROFESSOR OF FAMILY MEDICINE AT THE UNIVERSITY OF MISSOURI SCHOOL OF MEDICINE AT COLUMBIA AND LEAD AUTHOR OF THE STUDY IF THE DIRECTION IS TAKEN IN HEALTH REFORM THAT WE WANT TO PROVIDE AND PAY FOR SERVICES THAT WORK AND NOT PROVIDE OR PAY FOR THOSE THAT DON'T THIS KIND OF EXPERIMENT WILL HELP IN THAT DECISIONMAKING THE STUDY WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE WAS FUNDED BY THE NATIONAL INSTITUTES OF HEALTH AND COVERED PATIENTS AT 109 OBSTETRICS AND FAMILY PRACTICES IN SIX STATES BETWEEN NOVEMBER 1987 AND MAY 1991 RESEARCHERS AT WASHINGTON UNIVERSITY SCHOOL OF MEDICINE ST LOUIS BRIGHAM AND WOMEN'S HOSPITAL BOSTON AND GEORGE WASHINGTON UNIVERSITY ROCKVILLE MD COLLABORATED ON THE STUDY HALF OF THE PARTICIPANTS IN THE STUDY ALL OF WHOM WERE CONSIDERED AT LOW RISK FOR PROBLEM BIRTHS WERE RANDOMLY ASSIGNED TO A TREATMENT GROUP THAT INCLUDED TWO SONOGRAMS ONE AT 15 TO 22 WEEKS INTO THE PREGNANCY AND THE OTHER BETWEEN 31 AND 35 WEEKS IN THE CONTROL GROUP PHYSICIANS ORDERED SONOGRAMS ONLY WHEN THEY CONSIDERED THEM MEDICALLY NECESSARY WOMEN IN THE SCREENING GROUP AVERAGED 22 SONOGRAMS WHILE THE CONTROL GROUP AVERAGED 06 TESTS 55 OF THE CONTROL GROUP DIDN'T HAVE ANY SONOGRAMS RESEARCHERS SAID 5 OF BABIES BORN TO MOTHERS IN THE SCREENING GROUP HAD COMPLICATIONS OR ADVERSE OUTCOMES COMPARED WITH 49 OF THOSE WHO DIDN'T HAVE ROUTINE SONOGRAMS AMONG OTHER MEASURES THE NUMBER OF PREMATURE AND LOWBIRTHWEIGHT BABIES WERE NEARLY IDENTICAL IN BOTH GROUPS DR EWIGMAN STRESSED THAT THE FINDINGS APPLY ONLY TO LOWRISK PREGNANCIES AND THAT SONOGRAMS ARE VALUABLE FOR AIDING THE CARE OF WOMEN AT HIGH RISK OF COMPLICATIONS ONE USE OF SONOGRAMS IS TO DETERMINE THE PROPER PLACEMENT OF THE NEEDLE IN THE PROCEDURE OF AMNIOCENTESIS WE'RE NOT SAYING ULTRASOUND IS OF NO USE HE SAID WE'RE SAYING IT NEEDS TO BE USED JUDICIOUSLY THE STUDY DIDN'T CONSIDER PATIENT SATISFACTION A MEASURE THAT BOTH THE CLINTON HEALTH REFORM PLAN AND MANY EMPLOYERS CONSIDER INCREASINGLY IMPORTANT IN USING PURCHASING POWER TO IMPROVE DELIVERY OF CARE ALAN TRUSCOTT MEDICAL DIRECTOR AT GROUP HEALTH OF PUGET SOUND A HEALTHMAINTENANCE ORGANIZATION IN SEATTLE SAID A SONOGRAM DOES PROVIDE INTANGIBLE BENEFITS FOR EXPECTANT MOTHERS AND FAMILY MEMBERS THAT HAS VALUE AND IT'S PROBABLY DRIVING A FAIR AMOUNT OF ULTRASOUND TESTS HE SAID HE THINKS IT IS POSSIBLE TO DO A ROUTINE SONOGRAM THAT PROVIDES ASSURANCE TO EXPECTANT PARENTS AND BASIC DATA FOR PHYSICIANS FOR PERHAPS 20 A TEST BUT AT THAT PRICE IT WOULDN'T IDENTIFY POTENTIALLY SERIOUS TROUBLES FOR A PREGNANCY 9309160142 930916 AMERICAN CYANAMID PLANS TO SPIN OFF MAJORITY STAKE IN ITS CHEMICAL BUSINESS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN CYANAMID CO MOVING TO TRANSFORM ITSELF FURTHER INTO A MEDICAL AND AGRICULTURAL PRODUCTS COMPANY SAID IT WILL SPIN OFF A MAJORITY STAKE IN ITS DEPRESSED CYTEC INDUSTRIES CHEMICAL SUBSIDIARY THE SPINOFF WHICH ANALYSTS HAD EXPECTED SINCE CYANAMID CREATED THE CYTEC UNIT LAST YEAR IS THE LATEST SHUFFLING OF ASSETS IN THE SLUMPING CHEMICAL INDUSTRY SELLERS OF CHEMICAL ASSETS ARE UNLOADING UNDERPERFORMING BUSINESSES TO FOCUS ON HIGHER GROWTH AREAS WHILE BUYERS ARE BETTING THAT INDUSTRY PROFITS FOLLOWING A MULTIYEAR TROUGH WILL START TO REBOUND WITHIN A YEAR OR TWO CYANAMID SAID IT WILL TAKE A THIRDQUARTER CHARGE OF ABOUT 420 MILLION OR 467 A SHARE RELATED TO THE SPINOFF THE CHARGE INCLUDES DISCONTINUED OPERATIONS ASSET WRITEDOWNS AND A 100 MILLION CHARGE FOR ENVIRONMENTAL CLEANUP AT THE COMPANY'S BOUND BROOK NJ CHEMICALPLANT SITE LAST YEAR THE WAYNE NJ COMPANY REPORTED THIRDQUARTER NET INCOME OF 609 MILLION OR 68 CENTS A SHARE CYANAMID SAID THE SPINOFF OF THE BUSINESS WHICH HAS ASSETS OF ABOUT 11 BILLION IS EXPECTED TO BE COMPLETED IN THE FOURTH QUARTER LAST YEAR CYTEC ACCOUNTED FOR 34 MILLION OR ONLY ABOUT 5 OF CYANAMID'S 666 MILLION IN OPERATING EARNINGS AND 1 BILLION OF CYANAMID'S 527 BILLION IN SALES THE DISTRIBUTION WILL BE IN THE FORM OF A TAXABLE DIVIDEND TO SHAREHOLDERS THE COMPANY SAID IT WILL BE TAXABLE BECAUSE CYANAMID WILL HOLD PREFERRED CYTEC SHARES CONVERTIBLE INTO 30 OF THE NEW COMPANY'S COMMON STOCK SPINOFFS IN WHICH 100 OF A UNIT IS DISTRIBUTED TO SHAREHOLDERS ARE USUALLY GRANTED TAXFREE STATUS BY THE INTERNAL REVENUE SERVICE CYANAMID IS SAYING THAT THEY THINK THERE IS AN UPSIDE TO THIS STOCK THEY WANT TO BE PART OF THAT UPSIDE WHILE LETTING CYTEC MANAGE ITSELF SAID ANALYST ROBERT REITZES AN ANALYST WITH CJ LAWRENCE INC MR REITZES NOTED THAT A MAJORITY OF CYANAMID'S STOCK IS IN THE HANDS OF INSTITUTIONAL INVESTORS WHO WON'T BE TAXED ON THE DISTRIBUTION OF CYTEC SHARES CYANAMID SHARES WERE QUOTED AT 53625 UNCHANGED IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE CYNAMID ANNOUNCEMENT FOLLOWED AN ANNOUNCEMENT BY TEXACO INC THIS WEEK THAT IT WILL SELL ITS DEPRESSED PETROCHEMICAL BUSINESS FOR 106 BILLION TO A COMPANY CONTROLLED BY JON HUNTSMAN WHO CONTROLS CLOSELY HELD HUNTSMAN CHEMICAL CORP IN SALT LAKE CITY AND AUSTRALIAN BUSINESSMAN KERRY PACKER AND IN JUNE HANSON PLC A LONDON CONGLOMERATE AGREED TO BUY QUANTUM CHEMICAL CORP IN A STOCK SWAP VALUED AT ABOUT 720 MILLION ALBERT J COSTELLO CYANAMID CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CYTEC IS IN A POSITION TO OPERATE AUTONOMOUSLY AND WE ARE PLEASED THAT THE EVOLUTION OF CYANAMID TO A LIFE SCIENCES COMPANY IS NEARING COMPLETION CYTEC WITH 6700 EMPLOYEES WILL START LIFE AS AN INDEPENDENT COMPANY SHOULDERING SOME HEFTY BALANCE SHEET BURDENS THE WEST PATERSON NJ COMPANY WILL ASSUME ABOUT 400 MILLION IN EMPLOYEE POSTRETIREMENT HEALTH AND INSURANCE LIABILITIES IT ALSO WILL HAVE ABOUT 225 MILLION IN ACCRUED ENVIRONMENTAL CLEANUP LIABILITIES CYTEC MAKES A HODGEPODGE OF CHEMICAL PRODUCTS NONE OF WHICH IS MAKING MUCH MONEY FOR THE COMPANY GIVEN THE INDUSTRY'S DEPRESSED STATE NOTES A CHEMICAL INDUSTRY INVESTMENT BANKER WHO ASKED NOT TO BE NAMED CYTEC'S PRODUCT LINE RUNS FROM WATER TREATMENT POLYMERS TO A VARIETY OF INDUSTRIAL CHEMICALS USED IN PAPER MAKING MINING AND PAINT RESINS AMONG OTHER AREAS CYANAMID'S INCREASING FOCUS ON HUMAN HEALTH PRODUCTS WAS UNDERSCORED LATE LAST YEAR WHEN THE COMPANY ANNOUNCED AN AGREEMENT TO BUY A MAJORITY STAKE IN IMMUNEX CORP A SEATTLE BIOTECHNOLOGY COMPANY AND FOLD IN ITS ANTICANCER DRUG BUSINESS ABOUT HALF OF CYANAMID'S SALES LAST YEAR CAME FROM ITS MEDICAL GROUP WHICH CONSISTS MAINLY OF PRESCRIPTION DRUGS VACCINES AND VITAMINS THE COMPANY WHICH WILL HAVE ROUGHLY 31000 EMPLOYEES AFTER THE CYTEC SPINOFF IS ALSO A LEADING PESTICIDE MANUFACTURER 9309160141 930916 MARKETING & MEDIA ADVERTISING NAFTA SUPPORTERS AND FOES PITCH VIEWS TO PUBLIC IN AD CAMPAIGNS BY KEVIN GOLDMAN WHILE THE PRESIDENT STRUGGLES TO SELL THE NORTH AMERICAN FREE TRADE AGREEMENT TO CONGRESS CORPORATE FRIENDS AND FOES OF THE PACT ARE USING ADVERTISING IN AN UNUSUAL CAMPAIGN TO SELL IT TO THE PUBLIC A HALFPAGE AD WAS SCHEDULED TO APPEAR TODAY IN THE WASHINGTON POST WITH A PHOTOGRAPH OF PRESIDENT CLINTON AND THREE FORMER US PRESIDENTS MAKING A JOINT WHITE HOUSE APPEARANCE ON TUESDAY TO ENDORSE THE AGREEMENT THE AD PRESENTS REASONS WHY NAFTA WHICH REMOVES ALL TRADE TARIFFS BETWEEN THE US CANADA AND MEXICO OVER 15 YEARS SHOULD BE ADOPTED THE SPONSOR USANAFTA A COALITION OF OVER 2700 COMPANIES AND CORPORATIONS THE USANAFTA AD PREPARED BY THE WASHINGTONBASED POLITICAL CONSULTANT FIRM OF GRUNWALD ESKEW & DONILON MIRRORS A TELEVISION CAMPAIGN THAT HAS BEEN RUNNING FOR THE PAST WEEK ON CNN AND LOCALLY ON WASHINGTON TELEVISION STATIONS USANAFTA IS EXPECTED TO ROLL OUT ITS TELEVISION COMMERCIAL TO OTHER MARKETS WITHIN THE NEXT MONTH THE COALITION HEADED BY LAWRENCE A BOSSIDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ALLIEDSIGNAL IS USING THE AD BLITZ TO REDEFINE THE HOT AND INTRICATE DEBATE A COALITION SPOKESMAN SAYS UNTIL NOW THE OPPONENTS OF NAFTA PARTICULARLY TEXAS BILLIONAIRE ROSS PEROT AND THE CITIZENS TRADE CAMPAIGN A GRASSROOTS COALITION OF CONSUMER LABOR FAMILY FARM AND OTHER ORGANIZATIONS IN 45 STATES HAVE SHAPED THE DISCOURSE PARTLY THROUGH RADIO AND TELEVISION COMMERCIALS OR INFOMERCIALS UP UNTIL NOW THE PRONAFTA SIDE HASN'T BEEN HEARD FROM SAYS THE USANAFTA SPOKESMAN MR BOSSIDY WAS TESTIFYING YESTERDAY BEFORE THE HOUSE WAYS & MEANS SUBCOMMITTEE ON TRADE AND COULDN'T BE REACHED FOR COMMENT WE WANT BUSINESSMEN TO SEE AND HEAR THESE ADS SO THEY CAN TALK IN THEIR COMMUNITIES ABOUT HOW NAFTA IS GOOD FOR JOBS WHETHER ADS WILL PROVE USEFUL IN SELLING AN ISSUE MANY AMERICANS ARE UNCLEAR ABOUT TO BEGIN WITH AT THIS STAGE OF THE GAME IS UP FOR DEBATE ITSELF THE PROS AND CONS OF NAFTA ARE COMPLEX AND THE AGREEMENT'S IMPLEMENTATION IS SPREAD OVER MORE THAN A DECADE NATIONAL POLLS INDICATE THAT A MAJORITY OF AMERICANS DON'T EVEN KNOW WHAT NAFTA IS THAT IGNORANCE WAS THE SUBJECT OF A COMEDY SKETCH SEPT 7 BY NBC'S TONIGHT SHOW HOST JAY LENO WHO TOLD PASSERSBY THAT NAFTA WAS AN OPENING ACT AT A ROCK CONCERT NO ONE CORRECTED MR LENO INDEED 36 OF THOSE SURVEYED OPPOSE NAFTA ACCORDING TO THE LATEST WALL STREET JOURNAL/NBC NEWS POLL THE LARGEST NUMBER IN OPPOSITION OF ANY OF THE SURVEYS TAKEN THIS YEAR THE POLL WHICH CANVASSED 1006 PEOPLE IN THE US FRIDAY THROUGH MONDAY FOUND ONLY 25 FAVORED THE AGREEMENT THE SMALLEST PERCENTAGE THIS YEAR ANOTHER 34 SAID THEY HAD NOT HEARD ENOUGH ABOUT NAFTA TO MAKE UP THEIR MINDS YET AND SOME EXPERTS ARE WONDERING WHETHER THE PRONAFTA SIDE WAITED TOO LONG IN ENTERING THE FRAY THE CLINTON ADMINISTRATION HAS MISSED THE BOAT SAYS ROBERT DILENSCHNEIDER CHIEF EXECUTIVE OF HIS OWN PUBLIC RELATIONS FIRM SPECIALIZING IN CRISIS MANAGEMENT NAFTA WAS NEGOTIATED BY THE BUSH ADMINISTRATION AND CLINTON SHOULD HAVE COME IN READY TO SELL IT TO THE AMERICAN PUBLIC INSTEAD THE SUPPORT TROOPS ARE COMING IN AT THE 11TH HOUR AMONG OTHER THINGS MR DILENSCHNEIDER SUGGESTS FULLPAGE ADS IN NEWSPAPERS IN MAJOR CONGRESSIONAL DISTRICTS THE CLINTON ADMINISTRATION HAS A MASSIVE JOB TO DO HE ADDS THE PRONAFTA TV ADS SHOW A HOLE IN A FENCE AT THE USMEXICO BORDER AS A VOICEOVER SAYS NAFTA TOOK THE FIRST REAL STEP IN STOPPING ILLEGAL IMMIGRATION AND ALSO SHOWS A MAP OF THE US WITH ARROWS POINTING TO CANADA AND MEXICO THE ANNOUNCER SAYS NAFTA CREATED THE MOST POWERFUL TRADING BLOC IN THE WORLD WITH THE US LEADING THE WAY APPEARING IN NEW ORLEANS YESTERDAY TO DRUM UP SUPPORT FOR NAFTA MR CLINTON TOLD A GROUP OF LOCAL BUSINESS EXECUTIVES AND WORKERS OF THE AGREEMENT'S BENEFITS WHEN ASKED HOW DIFFICULT IT WOULD BE TO GET SUPPORT HE TOLD REPORTERS IT DEPENDS ON GETTING PEOPLE TO LISTEN TO THE FACTS AND IF WE CAN I THINK WE CAN PASS IT THAT IN PART IS WHERE THE ADS COME IN ALTHOUGH THE WHITE HOUSE ISN'T DIRECTLY INVOLVED IN THE ADVERTISING CAMPAIGN CLEARLY WHILE THE ADS AREN'T DESIGNED TO BE ENTERTAINING IT IS HOPED THEY WILL INFORM THE PRONAFTA AD EVEN HAS A SLOGAN GOOD FOR JOBS GOOD FOR US THE AD SAYS NAFTA WOULD SAVE 700000 AMERICAN JOBS AND CREATE 200000 NEW JOBS NOT SURPRISINGLY THE ANTINAFTA SPOTS FROM THE CITIZENS TRADE CAMPAIGN ARE JUST AS INSISTENT THAT NAFTA WILL DOOM AMERICAN WORKERS IN ONE RADIO AD THE SOUND OF A METAL DOOR SLAMMING SHUT IS HEARD AS THE ANNOUNCER SAYS THIS IS THE SOUND OF FACTORIES ACROSS AMERICA IF THE NAFTA TRADE DEAL BECOMES LAW THE COMMERCIAL ENDS WITH SOMEONE DIALING THE US CONGRESS AS THE VOICEOVER SAYS THIS IS THE SOUND OF VOTERS CALLING CONGRESS TO SAY NO IT'S THE SOUND OF FIGHTING BACK AND THE LABOR ORGANIZATION AFLCIO COMPOSED OF OVER 14 MILLION MEMBERS FROM 86 UNIONS IS PLANNING ON LAUNCHING A COMPREHENSIVE AD BLITZ INVOLVING TELEVISION RADIO AND PRINT TO REFLECT HOW THE ORGANIZATION IS STRONGLY OPPOSED TO NAFTA SAYS A SPOKESWOMAN DECLINING TO OFFER SPECIFICS STRANGELY SILENT IN THE AD WARS IS MR PEROT WHO USED INFOMERCIALS AMONG OTHER THINGS TO ATTRACT SUPPORT FOR HIS INDEPENDENT PRESIDENTIAL CANDIDACY BUT THIS TIME MR PEROT IS BYPASSING PAID ADVERTISING TO ATTACK NAFTA HIS MOST RECENT INFOMERCIAL ADDRESSING NAFTA WAS BROADCAST MAY 30 ON NBC HE APPEARED YESTERDAY ON NBC'S TODAY FOR FREE CHATTING UP A STORM ABOUT THE AGREEMENT'S PITFALLS TO AMERICAN WORKERS MR PEROT IS ALSO PLANNING TO APPEAR AT ANY NUMBER OF ANTINAFTA RALLIES INCLUDING ONE SCHEDULED FOR SATURDAY IN LANSING MICH BUT HIS SPOKESWOMAN SAYS NO PAID ADS OR INFOMERCIALS ARE PLANNED TO ADDRESS NAFTA INSTEAD THE ONLY PAID AD FEATURING MR PEROT IS IN THIS WEEK'S TV GUIDE THE AD SHOWING MR PEROT GRINNING BROADLY AS USUAL SOLICITS NEW MEMBERS TO HIS GRASSROOTS UNITED WE STAND AMERICA ORGANIZATION MARY MOORE VICE CHAIRMAN AND CHIEF CREATIVE OFFICER OF WELLS RICH GREENE BDDP IS STEPPING ASIDE FROM HER CREATIVE DUTIES THE AGENCY SAID ADDING THAT IT WILL BEGIN A SEARCH FOR HER SUCCESSOR ALTHOUGH MS MOORE IS RETAINING BOTH OF HER TITLES AN AGENCY SPOKESWOMAN SAID SHE WILL STOP OVERSEEING ADS PRODUCED BY THE AGENCY WHEN A NEW CREATIVE DIRECTOR IS NAMED HER NEW ROLE INCLUDES EXPANDING AWARENESS OF THE AGENCY AND ITS PRODUCT THE SPOKESWOMAN SAID THE AGENCY SAID MS MOORE REQUESTED THE CHANGE SHE COULDN'T BE REACHED FOR COMMENT THE AGENCY IS A UNIT OF BOULET DRU DUPUY PETIT PARIS MS MOORE'S MOVE FOLLOWS A TOUGH YEAR IN WHICH AT LEAST TWO BIG CLIENTS THE 42 MILLION CONTINENTAL AIRLINES ACCOUNT AND THE 30 MILLION ALKASELTZER PLUS BUSINESS WALKED OUT THE DOOR THE SPOKESWOMAN SAID SHE DIDN'T KNOW WHETHER MS MOORE IN HER NEW ROLE WOULD OVERSEE THE CREATIVE END OF NEW BUSINESS PITCHES THIS WHOLE THING HAS COME UP RATHER QUICKLY THE SPOKESWOMAN SAID WELLS RICH HIRED MS MOORE FIVE YEARS AGO FROM THE OLD BOSTON AGENCY HDM/CREAMER TO SUCCEED ANOTHER VICE CHAIRMAN CHARLIE MOSS HE REMAINS AT THE AGENCY AS CORPORATE CREATIVE DIRECTOR WITH AN ACTIVE ROLE IN CREATING ADS GAP INC PULLED ITS ADVERTISING FROM THE LOS ANGELES TIMES MAGAZINE AFTER A SEPT 5 OPINION ARTICLE MOCKED THE COMPANY'S NEW CAMPAIGN FOR ITS KHAKI PANTS A MAGAZINE SPOKESWOMAN CALLED THE ARTICLE A SATIRE OF GAP'S ADS WHICH FEATURE PHOTOGRAPHS OF OLDTIME CELEBRITIES LIKE GENE KELLY WEARING THE LIGHTBROWN PANTS WRITER CHRISTOPHER CORBETT POINTS OUT OTHER WELLKNOWN FIGURES WHO COULD HAVE WORN OR WEAR KHAKIS LIKE ADOLF HITLER BENITO MUSSOLINI AND SADDAM HUSSEIN THEY KNOW WHAT LOOKS GOOD WHEN YOU'RE TRYING TO MAKE THE RIGHT IMPRESSION DURING A COUP OR MASS EXECUTION MR CORBETT WRITES IN SAN FRANCISCO GAP OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT THE MAGAZINE SPOKESWOMAN WOULDN'T DISCLOSE HOW MUCH THE LOSS OF GAP ADVERTISING WOULD HURT REVENUE FROM TIME TO TIME THIS HAPPENS AND WE HOPE WE CAN WORK IT OUT SHE SAYS 9309160140 930916 FINANCING BUSINESS IMC FERTILIZER GROUP INC IMC FERTILIZER GROUP INC NORTHBROOK ILL SAID IT PLANS TO OFFER 175 MILLION OF SENIOR NOTES DUE 2000 AND 275 MILLION COMMON SHARES WITH FUNDS TO BE USED TO REFINANCE SOME HIGHYIELD DEBT THE COMPANY SAID THE SECURITIES WILL BE OFFERED UNDER A SHELF REGISTRATION STATEMENT FILED PREVIOUSLY WITH THE SECURITIES AND EXCHANGE COMMISSION EARLIER THIS MONTH IMC DISCLOSED THAT IT EXPECTS TO BUY 220 MILLION PRINCIPAL AMOUNT OF 1125 NOTES ISSUED BY ITS IMC FERTILIZER INC UNIT FROM PRUDENTIAL INSURANCE CO OF AMERICA IN A TRANSACTION EXPECTED TO CLOSE BY NOV 1 THE 250 MILLION PRICE TAG WILL BE FINANCED BY NEW DEBT OR EQUITY THE COMPANY SAID AT THE TIME IMC CURRENTLY HAS 221 MILLION SHARES OUTSTANDING 9309160138 930916 COMPUTERS CHIPS BECOME BIG BLACKMARKET ITEM BY ENRIQUE J GONZALES STAFF REPORTER OF THE WALL STREET JOURNAL FORGET DRUGS FORGET ARMS IF YOU WANT TO MAKE A BLACKMARKET KILLING THESE DAYS STEAL SOME COMPUTER CHIPS CHIPS ARE THE DOPE OF THE '90S SAYS JULIUS FINKELSTEIN A DEPUTY DISTRICT ATTORNEY IN SANTA CLARA CALIF POUND FOR POUND THEY ARE MORE VALUABLE THAN COCAINE IT'S MORE PROFITABLE AND IT'S EASIER TO GET RID OF TAKE THE CASE OF ARTHUR CHOU OF ROSEMEAD CALIF AT THE LOUNGE OF THE AIRPORT HILTON IN BURBANK CALIF AN UNDERCOVER COP JUST IN FROM AUSTIN TEXAS SLIDES A BOX ACROSS THE TABLE AFTER INSPECTING THE GOODS IN THE BOX THE PROSPECTIVE BUYER TAKES 21000 OUT OF HIS POCKETS PLACES THE CASH IN A BLACK BRIEFCASE AND SLIDES IT BACK WITHIN MINUTES OF THE PURCHASE LAST FEBRUARY LOS ANGELES COUNTY SHERIFF'S DEPUTIES ARRESTED THE 35YEAROLD MR CHOU ON CHARGES OF ILLEGALLY PURCHASING NOT DRUGS BUT A STOLEN SUPPLY OF 200 INTEL CORP 486SERIES MICROPROCESSORS THE COMPUTER CHIPS THAT ARE THE BRAINS BEHIND THE MAJORITY OF NEW PERSONAL COMPUTERS MR CHOU WHO PLEADED GUILTY TO RECEIVING STOLEN PROPERTY IN PASADENA SUPERIOR COURT AND WAS SENTENCED TO THREE YEARS' PROBATION ALLEGEDLY WAS PURCHASING THE CHIPS AS A MIDDLEMAN SELLING TO SMALL PC ASSEMBLERS IN TAIWAN HE SAID IT WAS THE WAY HE AND HIS ASSOCIATES DO BUSINESS ALL THE TIME RECALLS PAUL BRICK THE UNDERCOVER POLICEMAN FROM AUSTIN HE DOESN'T WEAR A BLACK TRENCH COAT AND SMOKE CIGARETTES HE WAS A BUSINESSMAN WHO TOOK A CHANCE AND GOT STUNG COMPUTER MAKERS CHIP DISTRIBUTORS AND CHIP MANUFACTURERS HAVE GRAPPLED WITH THE PROBLEM OF CHIP THEFT MOSTLY BY EMPLOYEES FOR MORE THAN A DECADE BUT WHILE NOBODY KEEPS STATISTICS AUTHORITIES BELIEVE THAT THEFT BURGLARIES AND EVEN ARMED ROBBERIES OF CHIPS ARE ON THE RISE AND BLACKMARKET DEMAND HAS RISEN EVEN HIGHER SINCE A JULY 4 TANK EXPLOSION CLOSED A SUMITOMO CHEMICAL CO PLANT IN JAPAN THAT MADE AN EPOXY RESIN CRUCIAL TO THE MANUFACTURE OF SOME COMMODITY MEMORY CHIPS THUS EXACERBATING A CHIP SHORTAGE AND SENDING PRICES UP INTEL 486 CHIPS SELL FOR 450 TO 500 EACH THROUGH LEGITIMATE CHANNELS ACCORDING TO SAN JOSE CALIF POLICE SGT JIM MCMAHON BUT FETCH 150 TO 250 APIECE WHEN THE STOLEN ITEMS ARE FIRST SOLD ON THE BLACK MARKET THE COST OF MANUFACTURING THE CHIPS IS A HEAVILY GUARDED TRADE SECRET IN WHAT INVESTIGATORS SAY MAY BE THE LARGEST SINGLE CHIP THEFT IN SILICON VALLEY SIX MASKED MEN LAST THURSDAY OVERWHELMED EMPLOYEES AT ONE OF INTEL'S EIGHT DISTRIBUTORS MAKING OFF WITH 739000 OF MICROPROCESSORS IN A DUFFEL BAG ACCORDING TO SANTA CLARA POLICE SGT MARK KERBY AND FEDERAL BUREAU OF INVESTIGATION SPOKESMAN RICK SMITH THE SIX MEN BRANDISHING HANDGUNS WALKED THROUGH A SHIPPING AND RECEIVING DEPARTMENT OF WYLE LABORATORIES INC IN SANTA CLARA DIRECTLY TO LOCKED CAGES THE SIZE OF SMALL ROOMS CONTAINING INTEL 486 CHIPS SO FAR NO ARRESTS HAVE BEEN MADE THEY ARE ALWAYS LOOKING FOR INTEL CHIPS MR SMITH SAYS OVER THREE RECENT WEEKS FOR EXAMPLE ARMED ROBBERS HIT THREE FIRMS IN THE SAN FRANCISCO BAY AREA DEMANDING INTEL MICROPROCESSORS SAYS KEN THOMPSON AN FBI AGENT SUPERVISING HIGHTECH CRIME PROBES IN SAN JOSE IN EACH CASE THEY DIDN'T GET ANY BUT DID MAKE OFF WITH LESSEXPENSIVE MEMORY CHIPS A COMPUTER'S MAIN DATASTORING CHIPS IN SILICON VALLEY ALONE SAYS SGT MCMAHON HEAD OF THE CITY'S HIGHTECH UNIT HIGHTECH THEFT WHICH INCLUDES NOT ONLY CHIPS BUT ALSO COMPUTERS CABLES HARD DRIVES AND PRINTERS AMOUNTS TO 1 MILLION A WEEK INTEL BASED IN SANTA CLARA ACKNOWLEDGES THAT THERE IS SOME PENTUP DEMAND FOR ITS 486SX TYPE OF MICROPROCESSOR CHIPS THEFT IN GENERAL DOES MAKE US CONCERNED AN INTEL SPOKESMAN SAYS THE BLACK MARKET FOR COMPUTER CHIPS IS A LUCRATIVE SLIVER OF A WORLDWIDE MARKET THAT EXCEEDS 60 BILLION IN SALES TRAFFICKING MOSTLY IN INTEL MICROPROCESSORS AND MEMORY CHIPS THE EASIEST CHIPS FOR WHICH TO FIND BUYERS THE PRIMARY CUSTOMERS FOR THE BLACK MARKETERS AUTHORITIES SAY ARE SMALL MANUFACTURERS HERE AND ABROAD THAT OFTEN GET SHUT OUT OF THE LEGITIMATE MARKET BY BIGGER BUYERS SMALL PC CLONE MAKERS ON THE US WEST COAST AND IN HONG KONG WERE THE EVENTUAL CUSTOMERS OF A CHIPSTEALING RING THAT OPERATED OUT OF AMERICAN TELEPHONE & TELEGRAPH CO'S TELEPHONE SWITCHING SYSTEM PLANT IN OKLAHOMA CITY SAYS GEORGE FIELDS AN INVESTIGATOR FOR THE INTERNAL REVENUE SERVICE CHIP MANUFACTURERS HAVEN'T BEEN ABLE TO KEEP UP WITH DEMAND FOR CHIPS BECAUSE OF A BOOM IN PC SALES IN THE PAST YEAR THANKS TO AN INDUSTRY PRICE WAR RISING CHIP THEFTS HAVE PROMPTED PROSECUTORS IN HIGHTECH REGIONS OF THE US TO INCREASE ENFORCEMENT EFFORTS THE US ATTORNEY'S OFFICE IN SAN FRANCISCO FOR EXAMPLE IS SETTING UP A TASK FORCE OF LOCAL FEDERAL AND INDUSTRY OFFICIALS TO TACKLE HIGHTECH CRIME IN THE BAY AREA MEANWHILE COMPANIES THAT MAKE SELL OR USE CHIPS ARE BEEFING UP PREVENTION EFFORTS A THWARTED BURGLARY OF MEMORY CHIPS IN AUSTIN ON JULY 26 FOR EXAMPLE SPURRED TARGET XETEL CORP TO START ORGANIZING A TASK FORCE OF INDUSTRY AND LAW ENFORCEMENT OFFICIALS TO TRY TO COME UP WITH WAYS TO PREVENT THE THEFTS SAYS RICHARD BROWN SECURITY CHIEF FOR THE CONTRACT MANUFACTURER OF SURFACEMOUNT ELECTRONICS TECHNOLOGY THE TOUGHEST AREA TO CONTROL POLICE SAY IS THEFT BY EMPLOYEES BECAUSE COMPANIES ARE SHY ABOUT PUBLICIZING THEIR LOSSES BUT THAT MAY BE CHANGING IN THESE MORE COSTCONSCIOUS TIMES COMPANIES ARE TAKING STEPS TO RECOGNIZE THEIR LOSSES SAYS SAN JOSE'S SGT MCMAHON SOME FIRMS HAVE BEGUN TO DO RANDOM COUNTS OF FOR EXAMPLE 3 OF INVENTORY TO DETECT PILFERAGE OTHERS ARE MORE AGGRESSIVELY SCREENING PROSPECTIVE HIRES ELITEGROUP COMPUTER SYSTEMS INC A FREMONT CALIF MAKER OF MOTHERBOARDS THE MAIN ELECTRONICS PANEL IN COMPUTERS HAS INSTALLED A CARDKEY ENTRY SYSTEM HIRED ARMED SECURITY GUARDS AND ADDED LOCKED CAGES FOR COMPUTER PARTS IN THE PAST YEAR IF YOU CAN TAKE JUST A TUBE OF CHIPS THAT'S A LOT OF MONEY SAYS DARWIN CHANG ELITEGROUP'S DIRECTOR OF MARKETING WE TOOK A PROACTIVE STEP TO GO AGAINST THAT ONCE CHIPS ARE STOLEN LAW ENFORCEMENT HAS A TOUGH TIME TRACKING THEM DOWN SINCE THEY DON'T HAVE SERIAL NUMBERS AND HAVE BEEN RESOLD AS MANY AS 18 TIMES WITHIN 72 HOURS OF A THEFT SGT MCMAHON SAYS MANY BUYERS MAY BE UNAWARE THEY ARE PURCHASING STOLEN GOODS AND SOME ARE EVEN RESOLD TO THE VICTIMS SAYS JOHN O'LOUGHLIN DIRECTOR OF CORPORATE SECURITY FOR SUN MICROSYSTEMS INC IN PALO ALTO GIVEN THE RAPID TURNOVER OF STOLEN CHIPS INVESTIGATORS HAVE STARTED USING REVERSESTINGS UNLIKE DRUG STINGS THE POLICE OFFICER POSES AS THE SELLER OF STOLEN CHIPS INSTEAD OF THE BUYER IN AN EFFORT TO CHOKE OFF DEMAND THE STRATEGY HAS PAID SOME DIVIDENDS A JOINT REVERSESTING OF THE FBI US CUSTOMS SERVICE IRS AND SAN JOSE AND SANTA CLARA LAW ENFORCEMENT AGENCIES LAST JANUARY BROUGHT IN ABOUT 30 BLACKMARKET BROKERS FROM VIETNAM ARGENTINA TAIWAN AND ACROSS THE US SGT MCMAHON SAYS THOSE ARRESTED INCLUDED A SAN JOSE DENTIST WHO DABBLED IN STOLEN CHIPS 9309160137 930916 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BROOKLYN UNION GAS CO AN OFFERING OF 17 MILLION COMMON SHARES VIA MERRILL LYNCH & CO AND SMITH BARNEY INC CATELLUS DEVELOPMENT CORP AN OFFERING OF 200 MILLION OF SENIOR SUBORDINATED NOTES VIA MORGAN STANLEY & CO JAMES RIVER CORP A SHELF OFFERING OF UP TO 400 MILLION OF DEBT SECURITIES TJX COS A SHELF OFFERING OF UP TO 75 MILLION OF DEBT SECURITIES 9309160136 930916 LETTERS TO THE EDITOR COLA WAS EVERYWHERE DURING VIETNAM WAR I READ WITH INTEREST GABRIELLA KARSCH'S AUG 20 LETTER TO THE EDITOR ABOUT COCACOLA IN VIETNAM I CAN SHED SOME LIGHT ON HOW THE SOFT DRINK INDUSTRY GOT ITS ORIGINAL SLICE OF THIS MARKET I WAS ASSIGNED TO THE 101ST AIRBORNE DIVISION IN 1969 AND SPENT SOME TIME IN THE BUSH WEST OF HUE AS TIME WENT BY I BEGAN NOTICING THE OMNIPRESENCE OF THE SOFT DRINK NO MATTER WHERE ONE COULD POSSIBLY GO THERE WOULD BE THE COLA CAN LAYING AT THE SIDE OF A TRAIL IN THE TANGLED THICKETS OF THE UNDERBRUSH AMID THE COILS OF CONCERTINA WIRE THAT SLINKED AROUND THE FIRE BASES AND ALONG THE PERIMETER OF THE NUMEROUS LANDING ZONES USED FOR AIR ASSAULTS INTO THE MOUNTAINOUS TERRAIN IN THE MICROCULTURE OF THE INFANTRY PLATOON THOSE RETURNING FROM R&R STANDDOWN OR A DUSTOFF WERE EXPECTED TO BRING WITH THEM A MAILBAG FILLED WITH SOFT DRINKS MINGLED WITH CHUNKS OF ICE THOSE WHO DIDN'T COULD EXPECT TO WALK POINT THE NEXT DAY SOFT DRINKS WERE A RESPITE FROM THE TEPID FOULTASTING WATER AND THEY WERE A TASTE OF HOME AS ONE NEVER CARRIED MORE THAN HE HAD TO IN THE SWELTERING HEAT EVERYTHING WAS EITHER CONSUMED OR DISCARDED IMMEDIATELY ALONG WITH THE COLA CAN WAS THE EVERPRESENT VIETNAMESE VENDOR A ROADSIDE FIXTURE ALONG QL1 AND THE BACK STREETS OF HUE AND PHU BAI HE WAITED PATIENTLY BEHIND HIS COLORFULLY PAINTED DISPLAY CASE TO PEDDLE THE WARES OF THE PERVASIVE BLACK MARKET ONE DOL HE SHOUTED WITH A BROAD SMILE A POINTING INDEX FINGER AND A PENCHANT FOR PRICE GOUGING OH YES THERE WERE ALWAYS SEVERAL CANS OF 7UP TUCKED TO THE SIDES OF THE NEATLY STACKED CARTONS OF AMERICANMADE CIGARETTES AND AN OCCASIONAL UNCOLA CAN ALSO DOTTED THE LANDSCAPE AS FAR WEST AS THE HO CHI MINH TRAIL 9309160134 930916 SENATE COMMITTEE VOTES TO STREAMLINE BANKRUPTCY CASES BOOST CREDITOR RIGHTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE JUDICIARY COMMITTEE VOTED TO AMEND THE 1978 BANKRUPTCY CODE TO STREAMLINE BANKRUPTCY CASES STRENGTHEN CREDITOR RIGHTS AND ENABLE MORE INDIVIDUALS TO EMERGE FROM BANKRUPTCY PROCEEDINGS WITHOUT LIQUIDATING THEIR ASSETS THE BILL HAS BROAD SUPPORT FROM LENDERS ALTHOUGH THERE ARE SEVERAL CHANGES THAT BANKS STILL WOULD LIKE CONGRESS TO MAKE A SIMILAR BILL FOUNDERED AFTER PASSING THE HOUSE AND THE SENATE LAST YEAR PARTLY BECAUSE OF LASTMINUTE OPPOSITION FROM BIG BANKS THEY OBJECTED TO A LABORBACKED PROVISION THAT COULD FORCE COMPANIES REORGANIZING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE TO DIVERT BORROWED FUNDS FROM OPERATIONS INTO PAYMENTS FOR RETIREE HEALTH BENEFITS THAT PROVISION REMAINS IN THIS YEAR'S VERSION OF THE BILL BUT BANKS AND UNIONS ARE DISCUSSING A COMPROMISE WE'VE GOT A GOOD BILL SAID SEN HOWELL HEFLIN D ALA THE BILL'S PRIMARY SPONSOR I HOPE WE CAN WORK OUT OUR DIFFERENCES THE SENATE IS EXPECTED TO COMPLETE WORK ON THE BILL THIS YEAR BUT HOUSE ACTION MAY NOT BE FINISHED UNTIL NEXT YEAR THE BILL WOULDN'T SLOW THE FLOOD OF BANKRUPTCY FILINGS WHICH TOTALED 971517 LAST YEAR UP 178 IN A DECADE SOME CRITICS CONTEND THAT THE LAST MAJOR OVERHAUL OF THE BANKRUPTCY LAWS IN 1978 MADE IT TOO EASY TO FILE FOR BANKRUPTCY OTHERS BLAME THE SURGE ON THE COMBINATION OF RISING DEBT AND TWO SHARP RECESSIONS SINCE 1980 FOR INDIVIDUALS THE BILL WOULD INCREASE TO 1 MILLION FROM 350000 THE CEILING ON PERSONAL DEBTS FOR A CHAPTER 13 FILING WHICH GIVES DEBTORS AS MANY AS FIVE YEARS TO REORGANIZE THEIR FINANCES AND PAY OFF THEIR DEBTS THIS CHANGE IS DESIGNED TO REDUCE THE NUMBER OF PEOPLE WHO ARE FORCED TO LIQUIDATE MANY OF THEIR ASSETS TO PAY A PERCENTAGE OF THEIR DEBTS UNDER CHAPTER 7 MANY DEBTORS AND CREDITORS PREFER CHAPTER 13 REPAYMENTS OVER CHAPTER 7 LIQUIDATIONS THE BILL ALSO WOULD GIVE DEBTORS MORE TIME TO MAKE DELINQUENT MORTGAGE PAYMENTS TO AVOID FORECLOSURE ON THEIR HOMES IMPROVE THE CHANCES FOR CREDITORS TO COLLECT SOME OF THE RENTS PAID TO LANDLORDS WHO ARE IN BANKRUPTCYLAW PROCEEDINGS REVERSE A COURT DECISION THAT HAS DISCOURAGED BANKS FROM LENDING TO MANY SMALL BUSINESSES BY FORCING LENDERS TO RETURN ALL LOAN PAYMENTS MADE IN THE YEAR BEFORE A COMPANY FILED UNDER THE BANKRUPTCY CODE IF THE COMPANY'S INSIDERS HAD PERSONALLY GUARANTEED THE LOAN GIVE GREATER PROTECTION IN BANKRUPTCYLAW PROCEEDINGS TO COMPANIES THAT LEASE PLANES AND TRAINS TO TRANSPORTATION COMPANIES AND STRENGTHEN THE RIGHT OF AIRPORT AUTHORITIES TO RECLAIM UNUSED AIRPORT GATES FROM AIRLINES TRYING TO REORGANIZE UNDER CHAPTER 11 ALLOW REPRESENTATIVES OF THE FEDERAL PENSION BENEFIT GUARANTY CORP AND STATE AND LOCAL PENSION PLANS THE RIGHT TO SIT ON CREDITOR COMMITTEES IN CHAPTER 11 CORPORATE REORGANIZATIONS SPECIFY THAT DEBTS RUN UP WHEN TAXES ARE PAID WITH A CREDIT CARD CAN'T BE DISCHARGED IN BANKRUPTCY TEST ACCELERATED BANKRUPTCY PROCEDURES FOR SMALL BUSINESSES ESTABLISH A NATIONAL BANKRUPTCY REVIEW COMMISSION TO STUDY THE NEED FOR FURTHER CHANGES IN THE BANKRUPTCY CODE 9309160133 930916 GENERAL DYNAMICS BOOSTS DIVIDEND 50 SETS NEW CASH PAYOUT FALLS CHURCH VA GENERAL DYNAMICS CORP A SHRINKING MILITARY CONTRACTOR DECLARED A 372 MILLION SPECIAL CASH DISTRIBUTION TO SHAREHOLDERS AND BOOSTED BY 50 ITS USUAL QUARTERLY DIVIDEND THE 12ASHARE SPECIAL PAYMENT THE THIRD BIG PAYOUT TO HOLDERS IN RECENT MONTHS IS PAYABLE OCT 12 TO STOCK OF RECORD SEPT 28 THE DIVIDEND RISING TO 60 CENTS A SHARE FROM 40 CENTS A SHARE IS PAYABLE NOV 12 TO STOCK OF RECORD OCT 15 INVESTORS REACTED FAVORABLY PUSHING UP THE COMPANY'S SHARES 2875 OR 3 TO 9950 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THIS SPECIAL DISTRIBUTION UNDERSCORES OUR CONTINUING BELIEF THAT THE MOST EFFICIENT WAY TO CONVERT SURPLUS DEFENSE ASSETS TO PRODUCTIVE NONDEFENSE USES IS TO RETURN FUNDS IN EXCESS OF OUR FINANCIAL AND REINVESTMENT NEEDS DIRECTLY TO OUR INVESTORS SAID WILLIAM A ANDERS CHAIRMAN OF THE ARMS MAKER THE EXTRAORDINARY PAYOUT BRINGS TO 155 BILLION THE TOTAL DISTRIBUTED TO SHAREHOLDERS IN THREE INSTALLMENTS GENERAL DYNAMICS SAID THE THIRD PAYMENT EXHAUSTS SUBSTANTIALLY ALL OF THE FUNDS AVAILABLE FOR DISTRIBUTION FROM SALES LAST YEAR OF ITS MISSILES JET FIGHTERS AND OTHER LINES HOWEVER MORE MONEY COULD BE RAISED SOON THROUGH SALES OF OTHER ASSETS ON THE BLOCK SUCH AS A BUILDINGMATERIALS BUSINESS AND A BUILDER OF AIRCRAFT FUSELAGES A GENERAL DYNAMICS SPOKESMAN SAID CERTAIN TAX ADVANTAGES EXPIRE DEC 31 UNDER THE COMPANY'S PLAN OF PARTIAL LIQUIDATION AMONG GENERAL DYNAMIC'S LARGEST SHAREHOLDERS AND BENEFICIARIES OF THE PLAN ARE INVESTOR WARREN BUFFETT WITH A 15 STAKE AND THE LESTER CROWN FAMILY WITH COMBINED HOLDINGS OF ABOUT 14 MR CROWN A FORMER EXECUTIVE VICE PRESIDENT IS A DIRECTOR GENERAL DYNAMICS HAS ABOUT 31 MILLION SHARES OUTSTANDING 9309160131 930916 HEARD ON THE STREET US ROBOTICS IS AMONG MOMENTUM' STOCKS WHOSE MOMENT MAY BE JUST ABOUT TO PASS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK US ROBOTICS ROSE 1/2 TO 30 3/4 YESTERDAY FOR THE USUAL REASON NO PARTICULAR REASON ADD IT TO THE GROWING LIST OF MOMENTUM STOCKS THAT ARE DEFYING GRAVITY ON WALL STREET THE IDEA OF MOMENTUM INVESTING IS TO BUY STOCKS THAT ARE ALREADY GOING UP THE STRATEGY HAS BECOME A FAVORITE WAY FOR SOME PROS TO INVEST IT WORKS TOO UNTIL THE PARTY STOPS SOME SOBER MINDS ENVISION THAT HAPPENING HERE SHARES IN THE NASDAQTRADED COMPUTERMODEM MAKER BASED IN SKOKIE ILL HAVE SOARED 50 THIS YEAR ON TOP OF 28 LAST YEAR TO TRADE AT 24 TIMES REPORTED EARNINGS WHILE US ROBOTICS IS A GOOD COMPANY ITS PRODUCTS ARE HARDLY REVOLUTIONARY AND INDEED FACE INCREASING PRESSURE FROM GIANTS INTEL AND AMERICAN TELEPHONE & TELEGRAPH AND MANY SCRAPPY SMALLER PLAYERS EVEN A FAN OF THE COMPANY ANALYST LOUIS EHRENKRANTZ OF EHRERANTZ KING NUSSBAUM SAYS THAT DESPITE BULLISH WALL STREET RECOMMENDATIONS IT'S WAY TOO LATE TO BUY THIS STOCK HE SAYS HE RECOMMENDED THE SHARES AT 17 MORE THAN A YEAR AGO BUT WOULDN'T NOW MARVELS MR EHRENKRANTZ THERE'S NO NEWS HERE IN THIS STOCK A LOT OF MOMENTUM PLAYERS ARE PILING ON THE LATEST EARNINGS WERE IMPRESSIVE BUT THEY WERE ONLY A LITTLE ABOVE ESTIMATES HE FIGURES THE STOCK HAS THE POTENTIAL TO SQUEEZE OUT AN ADVANCE PERHAPS EVEN PAST THE MID30S BUT SAYS HE DOESN'T PLAY THAT MARKETTIMING GAME A NEW YORK SHORTSELLER WHO IS BETTING AGAINST US ROBOTICS SAYS HE CAN'T UNDERSTAND WHY THE COMPANY'S SHARES THRIVE WHILE BOCA RESEARCH A SIMILAR MAKER OF MODEMS AND COMPUTER PERIPHERALS LANGUISHES AT ABOUT 10 TIMES EARNINGS US ROBOTICS WAS ABLE TO HAVE A GOOD QUARTER AND KEEP UP MOMENTUM ONLY BY CUTTING PRICES 40 TO 50 ON ITS ENTRYLEVEL SPORTSTER MODEM HE GROWLS THE COMPANY CALLS THE CUTS MADE TO GRAB MARKET SHARE SUCCESSFUL ONLY A FEW ANALYSTS FOLLOW US ROBOTICS BUT AS WITH MANY SMALL STOCKS MOST ARE TIGHT WITH THE COMPANY BUYS ARE IN FORCE AT HAMBRECHT & QUIST VOLPE WELTY AND DONALDSON LUFKIN & JENRETTE THE THREE FIRMS THAT UNDERWROTE US ROBOTICS' INITIAL PUBLIC OFFERING IN OCTOBER 1991 AT 13 AS WELL AS A SUBSEQUENT STOCK OFFERING IN JANUARY AT 22 THIS ISN'T TO IMPLY THAT UNDERWRITERS CAN'T BE OBJECTIVE ABOUT THEIR STOCKS BUT INVESTORS MAY WISH TO KEEP THE ASSOCIATIONS IN MIND WHEN THEY HEAR BULLISH COMMENTS AT HAMBRECHT STEVEN LEVY CITES US ROBOTICS' 30 ANNUAL SALES GROWTH AND CALLS IT ONE OF OUR TOP INVESTMENT IDEAS VOLPE'S PAUL I BLOOM SAYS THE STORY'S WORKED OUT THE WAY WE THOUGHT IT WOULD BUT EVEN MORE IN INVESTORS' MINDS PERHAPS SHOULD BE THE FACT THAT 18 MILLION OF THE 28 MILLION SHARES OFFERED IN JANUARY CAME FROM STOCKHOLDERS AND A MONTH AGO US ROBOTICS TOOK THE UNUSUAL STEP OF ANNOUNCING THAT THREE KEY EXECUTIVES INTEND TO SELL A NUMBER OF THE COMPANY'S SHARES ON A QUARTERLY BASIS INCLUDING 100000 SHARES BY PRESIDENT CASEY COWELL ROSS W MANIRE CHIEF FINANCIAL OFFICER SAYS HE WANTED TO PREPARE THE MARKET FOR THE SALES I'VE SEEN TOO MANY PEOPLE START TO GET NERVOUS WHEN THEY SEE INSIDER SELLING HE SAYS NINE MONTHS ENDED JULY 2 1993 THIRD QUARTER JULY 2 1993 LYNCH MOB EVEN INVESTMENT GENIUSES MAKE MISTAKES TAKE PETER LYNCH THE FORMER STAR MANAGER OF FIDELITY MAGELLAN FUND REGALED AN AUDIENCE OF 1500 STARSTRUCK CITIBANK BROKERAGE CUSTOMERS IN A BALLROOM OF THE NEW YORK HILTON WITH TALES OF INVESTING GONE AWRY HE CONFESSED HE BOUGHT KAISER INDUSTRIES AT ABOUT 13 AFTER THE PRICE HAD FALLEN 50 AT 10 HE CALLED HIS MOTHER AND ASKED HOW MUCH MORE CAN THE STOCK DROP IN FACT IT DROPPED TO 3 THE STOCK EVENTUALLY RECOVERED AFTER SPINOFFS AND LIQUIDATIONS OF KAISER BUSINESSES MR LYNCH GAVE HIS USUAL PEP TALK ON THE VIRTUES OF LONGTERM STOCK INVESTING BUT HE SAID THAT A HOUSE CAN PROVIDE A BETTER AFTERTAX RETURN TODAY IF IT APPRECIATES 3 A YEAR AFTER BUYING A HOUSE PUT MONEY IN STOCKS HE SUGGESTED AND DON'T BE PUT OFF BY DISCOURAGING NEWS PEOPLE IN THE 1950S WERE NOT BUYING STOCKS BECAUSE THEY WORRIED ABOUT DEPRESSION AND NUCLEAR WAR HE SAID AND THEY MISSED A GREAT DECADE CERTAINLY THE INVESTORS PACKING THE HUGE ROOM DIDN'T LOOK WORRIED ABOUT THE STOCK MARKET THEY HUNG ON HIS EVERY WORD 9309160130 930916 SEC COMPLAINT ALLEGES KING CAPITAL HOLDER BROKE SECURITIES LAWS BOSTON THE SECURITIES AND EXCHANGE COMMISSION FILED A COMPLAINT IN US DISTRICT COURT HERE AGAINST KING CAPITAL CORP AND ITS SOLE SHAREHOLDER DAVID A KING ALLEGING THAT MR KING MISREPRESENTED THE RISKS OF INVESTMENTS HE MARKETED VIOLATING ANTIFRAUD PROVISIONS OF THE SECURITIES LAWS THE COMPLAINT ALLEGES THAT MR KING IN SOLICITING INVESTORS FOR AN INVESTMENT POOL MADE MATERIAL MISREPRESENTATIONS AND OMISSIONS THAT SERVED AS AN INDUCEMENT FOR AT LEAST 35 PEOPLE TO INVEST MORE THAN 23 MILLION THE POOL GRANTED MORTGAGE LOANS SECURED BY THE BORROWER'S RESIDENTIAL OR COMMERCIAL PROPERTY THE SEC SAID INVESTORS STOPPED GETTING RETURNS ON THEIR INVESTMENTS WHEN BORROWERS DEFAULTED AND HAVE BEEN UNABLE TO SELL THEIR INVESTMENTS THE SEC SAID THAT SIMULTANEOUS WITH THE FILING OF THE COMPLAINT MR KING AND KING CAPITAL WITHOUT ADMITTING OR DENYING THE ALLEGATIONS CONSENTED TO THE ENTRY OF A PERMANENT INJUNCTION ENJOINING THEM FROM FURTHER VIOLATIONS OF THE PROVISIONS THE SEC SAYS INVESTORS WERE TOLD THEY WOULD RECEIVE A SECURITY INTEREST IN THE MORTGAGED PROPERTIES THAT THE INVESTMENT WAS RISK FREE AND THAT THEY HAD A MONEYBACK GUARANTEE THE COMPLAINT ALLEGES THE INVESTORS DIDN'T RECEIVE A SECURITY INTEREST IN THE MORTGAGED PROPERTIES AND WERE NO MORE THAN CREDITORS OF THE POOL THE POOL DEVELOPED AND MANAGED BY MR KING'S FATHER BARRY KING COLLECTED MORE THAN 111 MILLION IN CLIENT FUNDS FROM MORE THAN 105 INVESTORS IN FIVE STATES THE SEC SAID IN SEPTEMBER 1990 THE SEC FILED A SIMILAR COMPLAINT AGAINST BARRY KING HE CONSENTED TO AN INJUNCTION WITHOUT ADMITTING OR DENYING THE ALLEGATIONS ENJOINING HIM FROM FURTHER VIOLATIONS IN FEBRUARY 1991 THE FEDERAL COURT ORDERED THAT THE ASSETS OF THE POOL BE LIQUIDATED UNDER SUPERVISION OF A COURTAPPOINTED SPECIAL AGENT 9309160129 930916 BATASTINI IS SENTENCED FOR ROLE IN BCCI CASE ATLANTA WILLIAM W BATASTINI FORMER CHIEF FINANCIAL OFFICER OF NATIONAL BANK OF GEORGIA WAS SENTENCED TO 18 MONTHS IN PRISON AND ORDERED TO PAY 50000 IN FINES 36657 IN RESTITUTION AND 46575 IN PROSECUTION COSTS THE CASE AGAINST MR BATASTINI STEMMED FROM THE FEDERAL GOVERNMENT'S INVESTIGATION INTO THE BANK OF CREDIT AND COMMERCE INTERNATIONAL A UNIT OF BCCI HOLDINGS LUXEMBOURG SA MR BATASTINI WHO WAS INDICTED IN SEPTEMBER 1992 WITH THE FORMER HEAD OF BCCI SWALEH NAQVI AND TWO OTHER BANKING OFFICIALS WAS CONVICTED IN MARCH OF THIS YEAR OF AMONG OTHER CHARGES CONSPIRACY TO DEFRAUD THE US 9309160128 930916 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 FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF STEPUP NOTES DUE SEPT 22 1998 PRICED AT PAR TO YIELD 45 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 55 AFTER TWO YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF FLOATINGRATE NOTES DUE SEPT 18 1995 SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE NONCALLABLE NOTES WERE PRICED AT PAR AND WILL PAY AND FLOAT QUARTERLY AT PRIME MINUS 26 ACCORDING TO MCM CORPORATEWATCH FHP INTERNATIONAL CORP 100 MILLION OF NOTES DUE SEPT 15 2003 PRICED AT PAR TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 155 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC FRONTIER INSURANCE GROUP INC 13 MILLION COMMON SHARES PRICED AT 4450 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO OF THE TOTAL 12 MILLION SHARES ARE BEING OFFERED BY THE COMPANY GUAM 175 MILLION OF 1993 SERIES A GENERALOBLIGATION BONDS PRICED BY A LEHMAN BROTHERS INC GROUP AND GIVEN YIELDS THAT RANGE FROM 3 IN 1994 TO 547 IN 2018 S&P RATED THE BONDS TRIPLEB ILLINOIS 333 MILLION OF BUILD ILLINOIS SERIES S SALESTAX REVENUE BONDS PRICED BY A LEHMAN BROTHERS INC GROUP AND GIVEN YIELDS THAT RANGE FROM 26 IN 1994 TO 545 IN 2018 THE BONDS WERE RATED DOUBLEA BY MOODY'S AND TRIPLEA BY S&P NEW YORK STATE MORTGAGE AGENCY 1327 MILLION HOMEOWNER MORTGAGE REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE ISSUE ARE 295 MILLION SERIES 31B BONDS WHICH ARE 265S PRICED AT PAR THEY HAVE A FINAL MATURITY OF OCT 1 2017 THERE ARE ALSO 295 MILLION SERIES 31C BONDS WHICH ARE 28S PRICED AT PAR THEY ALSO HAVE A FINAL MATURITY OF OCT 1 2017 THE 368 MILLION SERIES 32B BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX ARE 275S PRICED AT PAR THEIR FINAL MATURITY IS OCT 1 2025 THE 368 MILLION SERIES 32C BONDS ARE ALSO SUBJECT TO THE ALTERNATIVEMINIMUM TAX THEY HAVE A 29 COUPON AND ARE PRICED AT PAR THEIR FINAL MATURITY IS OCT 1 2025 INTEREST FOR THE VARIOUS BONDS IS PAYABLE ON THEIR MANDATORY TENDER DATES AFTER WHICH THE BONDHOLDERS WILL HAVE NO RIGHT TO RETAIN THE SECURITIES THE INTEREST WILL BE CALCULATED ON A 30/360DAY BASIS GOLDMAN SACHS SAID THE SERIES 31B AND 32B BONDS HAVE A MANDATORY TENDER DATE OF MARCH 1 1994 AND THE SERIES 31C AND 32C BONDS HAVE A MANDATORY TENDER DATE OF JUNE 1 1994 MOODY'S IS EXPECTED TO GIVE THE ISSUE A VMIG1/DOUBLEA RATING UNIVERSITY OF MARYLAND 124 MILLION OF REVENUEREFUNDING BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 25 IN 1994 TO 51 IN 201214 BOTH MOODY'S AND S&P RATED THE ISSUE DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 7501 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 19931610 IS BACKED BY THE AGENCY'S 30YEAR GOLD 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 550 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1609 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1608 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION SWAP TRUST 4 ISSUED TUESDAY BACKED BY 1627 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES SERIES 1993163PJ AND AN INTERESTRATE SWAP THE SERIES IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES GREEN TREE FINANCIAL CORP 6634 MILLION OF MANUFACTUREDHOUSING ASSETBACKED CERTIFICATES PRICED TUESDAY IN EIGHT PARTS THROUGH UNDERWRITERS LED BY CS FIRST BOSTON ACCORDING TO MCM CORPORATEWATCH THE TRANSACTION GREEN TREE FINANCIAL CORP 19933 WILL BE ISSUED IN STIAL PAYMENTS THE 144 MILLION IN CLASS A1 CERTIFICATES WERE PRICED AS 46S AT 1001875 TO YIELD 4385 A 50BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 15 YEARS THE 686 MILLION IN CLASS A2 CERTIFICATES WERE PRICED AS 49S AT 1001875 TO YIELD 4812 A 63BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS THE 715 MILLION IN CLASS A3 CERTIFICATES WERE PRICED AS 52S AT 1001875 TO YIELD 5146 A 40BASISPOINT SPREAD ABOVE THE TREASURY'S FIVEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF FOUR YEARS THE 64 MILLION IN CLASS A4 CERTIFICATES WERE PRICED AS 545S AT 10028125 TO YIELD 5395 A 65BASISPOINT SPREAD ABOVE THE TREASURY'S FIVEYEAR NOTE THE CERTIFICATES HAVE AN AVEARGE LIFE OF 51 YEARS THE 884 MILLION IN CLASS A5 CERTIFICATES WERE PRICED AS 575S AT 10021875 TO YIELD 5738 A 78BASISPOINT SPREAD ABOVE THE TREASURY'S SEVENYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF SEVEN YEARS THE 279 MILLION IN CLASS A6 CERTIFICATES WERE PRICED AS 61S AT 100375 TO YIELD 6088 A 73BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 907 YEARS THE 1194 MILLION IN CLASS A7 CERTIFICATES WERE PRICED AS 64S AT 10040625 TO YIELD 6407 A 105BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 1232 YEARS ALL SENIOR CLASS A CERTIFICATES WERE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY DUFF & PHELPS CO THE 796 MILLION IN SUBORDINATE CLASS B CERTIFICATES WERE PRICED AS 685S AT 10034375 TO YIELD 6858 A 150BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES WERE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY D&P BANQUE INDOSUEZ FRENCH PARENT 100 MILLION ECU OF 625 EUROBONDS DUE OCT 15 1998 AT ISSUE PRICE 101495 VIA DAIWA EUROPE LTD BONDS REOFFERED AT 9992 TO YIELD 627 BANQUE INDOSUEZ IS A UNIT OF CIE DE SUEZ SA FEES 1875 BLFA FINANCE AMSTERDAM NV GERMAN PARENT 250 MILLION MARKS OF 65 EUROBONDS DUE OCT 15 2008 AT ISSUE PRICE 10215 VIA DEUTSCHE GENOSSENSCHAFTSBANK GUARANTEED BY THE PARENT BLFA OF MUNICH BONDS YIELD 658 AT COMANAGERS BREAKEVEN PRICE OF 99275 FEES THREE CITICORP US 150 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE SEPT 30 2005 AT ISSUE AND FIXED REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE LESS 025 POINT SUBJECT TO A MINIMUM COUPON OF 55 AND A MAXIMUM 9 FEES625 COPENHAGEN MUNICIPALITY 100 MILLION SWISS FRANCS OF 4625 PUBLIC BONDS DUE NOV 10 2003 PRICED AT 102875 VIA CREDIT SUISSE FEES 275 DEUTSCHE CENTRALBODENKREDIT AG GERMAN PARENT 100 MILLION MARKS OF 65 EUROBONDS DUE OCT 13 1995 AT ISSUE PRICE OF 1008 VIA TRINKAUS & BURKHARDT KGAA BONDS YIELD 675 AFTER FEES OF 125 BONDS REDEEMABLE AT ISSUER'S OPTION IN MARKS OR DOLLARS AT 6329 PER BOND WHICH EQUATES TO FOREIGNEXCHANGE RATE OF 158 MARKS PER DOLLAR KNOCKOUT FEATURE ON OPTION UNTIL SEPT 22 1995 WHICH IS TRIGGERED IF OFFICIAL FOREIGNEXCHANGE RATE AT FRANKFURT FIXING IS EQUAL TO OR EXCEEDS 172 MARKS PER DOLLAR FOR AT LEAST TWO CONSECUTIVE DAYS IF THIS OCCURS BONDS REDEEMABLE IN MARKS ONLY DEUTSCHE CENTRALBODENKREDIT IS A UNIT OF DEUTSCHE BANK AG EUROPEAN INVESTMENT BANK SUPRANATIONAL TWO BILLION FRENCH FRANCS OF 6125 EUROBONDS DUE OCT 8 2004 AT ISSUE AND FIXED REOFFER PRICE OF 9864 VIA LEAD UNDERWRITER BANQUE PARIBAS TO YIELD 63 A MARGIN OF EIGHT BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 0325 HOUSING FINANCE CORP UK 140 MILLION OF 8625 ASSETBACKED EUROBONDS DUE NOV 13 2023 AT ISSUE PRICE OF 99579 VIA LEAD UNDERWRITER SAMUEL MONTAGU & CO BONDS PRICED TO YIELD SPREAD OF 130 BASIS POINTS ABOVE 875 UK GILT DUE 2017 BONDS SECURED ON SECURED LOANS TO REGISTERED HOUSING ASSOCIATIONS BONDS CALLABLE AT ANY TIME AT LEVEL YIELD WITH GILTS FEES 0625 INTEREST PAYABLE SEMIANNUALLY THERE IS A LONG FIRST COUPON TO MAY 13 1994 SBAB AB SWEDEN 250 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 20 1995 AT ISSUE AND FIXED REOFFER PRICE OF 99935 VIA LEAD UNDERWRITER MERRILL LYNCH INTERNATIONAL LTD BONDS PAY INTEREST SEMIANNUALLY FLAT AT SIXMONTH LIBOR FEES 0125 THERE IS A SHORT FIRST COUPON 9309160127 930916 MUTUAL FUNDS FIDELITY OFFERS NEW FUND THAT KEEPS TAXES IN MIND BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL TAX INCREASE HAS A SILVER LINING FOR MUTUALFUND COMPANIES WHICH SEE AN OPPORTUNITY TO SELL A FLOCK OF TAXSTRATEGY FUNDS FIRST OUT OF THE GATE IS A NEW FIDELITY INVESTMENTS BOND FUND WHICH WILL SWITCH BACK AND FORTH BETWEEN TAXABLE AND TAXEXEMPT BONDS ON THE ADVICE OF A NEURAL NETWORK COMPUTER SYSTEM THE GOAL OF THE FUND WHICH OPENS TO INVESTORS NEXT WEEK ISN'T STRICTLY TO AVOID ALL TAXES BUT RATHER TO INVEST IN THE TYPE OF BOND THAT FIDELITY THINKS WILL HAVE A HIGHER AFTERTAX RETURN FIDELITY'S SPARTAN BOND STRATEGIST FUND COULD BE JUST THE FIRST OF A FLOCK OF FIDELITY FUNDS THAT TAKE TAXES INTO CONSIDERATION FIDELITY OFFICIALS SAY TAXSENSITIVE FUNDS OF THE FUTURE COULD INCLUDE BALANCED FUNDS WHICH INVEST IN BOTH STOCKS AND BONDS OR STOCK FUNDS THAT TRY TO MINIMIZE TAXABLE DISTRIBUTIONS TO SHAREHOLDERS NOR IS BOSTONBASED FIDELITY ALONE IN WORKING ON NEW FUNDS FOR A HIGHTAX ERA OTHER MUTUALFUND COMPANIES HAVE VEHICLES IN THE WORKS AS WELL APART FROM MUNICIPALBOND FUNDS NO ONE HAS TAKEN TAXES INTO ACCOUNT IN MANAGING MUTUAL FUNDS SAYS JOEL DICKSON A STANFORD CALIF ECONOMIST WHO HELPED WRITE TWO RECENT STUDIES OF MUTUAL FUND AFTERTAX RETURNS THIS IS AN INNOVATION AND IN A MARKET SATURATED WITH THOUSANDS OF MUTUAL FUNDS THE NEW BREED OF FUNDS MAY JUST BE A WAY TO DRAW MORE MONEY IN HE ADDS IT WAS FIDELITY'S MARKETING DEPARTMENT THAT BROUGHT UP THE IDEA OF A TAXSENSITIVE BOND FUND ACCORDING TO NEAL LITVACK AN EXECUTIVE VICE PRESIDENT AT FIDELITY THE FUND IS GEARED TO INVESTORS WHO PAY FEDERAL INCOME TAXES OF 31 OR MORE IT REMAINS TO BE SEEN WHETHER THE FUND WILL BE ABLE TO BEAT THE AFTERTAX RETURNS ON TREASURYS AND MUNICIPAL BONDS BY SHIFTING BETWEEN THOSE TWO CLASSES OF BONDS THE ACT OF SELLING ONE SECURITY AND BUYING ANOTHER CAN GENERATE TAXES ITSELF MOREOVER THE COMPUTER MODELS BEHIND THE FUND DON'T YET HAVE A LONG TRACK RECORD FIDELITY HAS HOWEVER USED SIMILAR METHODS TO SHIFT ASSETS IN ITS FASTGROWING ASSET MANAGER FUNDS AT LEAST 50 OF THE FUND WILL ALWAYS BE INVESTED IN MUNICIPAL BONDS THAT ALLOWS INTEREST FROM MUNICIPAL BONDS TO GET PASSED THROUGH TO INVESTORS WITHOUT INCURRING FEDERAL TAXES BUT THE FUND'S GOAL IS TO HAVE A HIGH AFTERTAX TOTAL RETURN RATHER THAN A HIGH YIELD TOTAL RETURN COMBINES TWO YARDSTICKS OF PERFORMANCE THE GAIN OR LOSS TO INVESTORS FROM ZIGZAGS IN BOND PRICES AND THE INCOME THROWN OFF BY THE BONDS MUNICIPAL BONDS CURRENTLY HAVE HIGHER AFTERTAX YIELDS THAN TREASURY BONDS FOR UPPERINCOME INVESTORS THAT IS AFTER FEDERAL TAXES ARE DEDUCTED FROM TREASURY BONDINTEREST PAYMENTS INVESTORS WOULD BE LEFT WITH LESS INCOME THAN THEY WOULD GET FROM A MUNICIPAL BOND BUT IT'S POSSIBLE THAT TREASURY BONDS COULD HAVE HIGHER TOTAL RETURNS IN THE MONTHS AHEAD IF FOR INSTANCE THEIR PRICES RISE WHILE THE PRICES OF MUNICIPAL BONDS DECLINE HISTORICALLY THE DIFFERENCE BETWEEN MONTHLY AFTERTAX TOTAL RETURNS OF TREASURYS AND MUNIS HAS OCCASIONALLY BEEN AS WIDE AS EIGHT PERCENTAGE POINTS ACCORDING TO VAN HARLOW A FIDELITY RESEARCHER WHO HELPED CREATE THE FUND BUT THE GAP IN THE TWO TYPES OF BONDS' AFTERTAX RETURN ORDINARILY IS TWO PERCENTAGE POINTS OR LESS THE TRICK FOR THE FUND WILL BE WHETHER IT CAN SUCCESSFULLY GUESS AHEAD OF TIME WHICH TYPE OF BOND WILL PERFORM BETTER TO MAKE ITS JUDGMENT THE FUND WILL LOOK AT SUCH VARIABLES AS THE IMPENDING SUPPLY OF MUNICIPAL BONDS THE VOLATILITY OF THE BOND MARKET THE SHAPE OF THE YIELD CURVE THAT IS THE DIFFERENT YIELDS OF BONDS AT DIFFERENT MATURITIES AND MONETARY POLICY FOR INSTANCE A HEAVY SUPPLY OF MUNICIPAL BOND OFFERINGS COMING UP WOULD TEND TO DEPRESS PRICES OF MUNICIPAL BONDS AGAINST TREASURYS TO WEIGH THESE INFLUENCES ON THE BOND MARKETS THE FUND WILL USE A NEURAL NETWORK THIS IS A COMPUTER PROGRAM THAT TRIES TO MIMIC THE STRUCTURE AND FUNCTION OF THE HUMAN BRAIN THE PROGRAM TRIES TO FIND SUBTLE PATTERNS IN FINANCIAL MARKETS AND PICKS SECURITIES THAT IT EXPECTS TO BENEFIT FROM THOSE PATTERNS FIDELITY ALREADY USES NEURAL NETWORKS TO RUN FOUR STOCK FUNDS ONE THING THE FUND WON'T DO IS TRY TO TIME INTERESTRATE MOVEMENTS SAYS THOMAS J STEFFANCI DIRECTOR OF FIXEDINCOME INVESTING AT FIDELITY INTERESTRATE MOVES ARE INHERENTLY DIFFICULT TO PREDICT HE SAYS THE FUND'S MANAGER 32YEAROLD GEORGE FISCHER IS CURRENTLY A FIDELITY MUNICIPALBOND INSTITUTIONAL MONEY MANAGER HE WILL BE ALLOWED TO REACH FAR AFIELD FROM TREASURY BONDS WHEN BUYING TAXABLE BONDS BUYING EMERGINGMARKET DEBT FOR INSTANCE THE FUND CAN ONLY BUY BONDS THAT OTHER FIDELITY FUNDS OWN AS MUCH AS 35 OF THE FUND CAN BE INVESTED IN BELOWINVESTMENTGRADE OR JUNK SECURITIES THE FUND CAN ALSO USE FUTURES AND DERIVATIVE SECURITIES TO ARTIFICIALLY CHANGE ITS BALANCE BETWEEN TREASURYS AND MUNICIPALS RATHER THAN BUYING AND SELLING THE BONDS THEMSELVES DESPITE THE USE OF DERIVATIVES AND BELOWINVESTMENTGRADE BONDS FIDELITY EXPECTS THE FUND TO HAVE SWINGS IN PRICE THAT ARE NO MORE SEVERE THAN A LONGTERM MUNICIPALBOND FUND IT SAYS THAT IN BACKTESTING ITS METHODOLOGY FOR THE PRIOR 15 YEARS THE COMPUTER WAS ABLE TO BEAT THE AFTERTAX RETURN OF BOTH TREASURYS AND MUNICIPAL BONDS WITHOUT EXCESSIVE RISK BUT SOME ACADEMICS QUESTION THE VALUE OF SUCH BACKTESTING IN DETERMINING THE SUCCESS OF AN INVESTMENT STRATEGY THE FUND'S PORTFOLIO WILL INITIALLY HAVE AN AVERAGE MATURITY OF 22 YEARS MEANING THAT IT COULD UNDERGO STRONG SWINGS IN PRICE BECAUSE OF INTERESTRATE CHANGES FIDELITY SAYS THAT THE FUND WILL REQUIRE A MINIMUM INITIAL INVESTMENT OF 10000 WILL HAVE ANNUAL OPERATING EXPENSES OF 70 CENTS FOR EVERY 100 INVESTED AND WON'T CARRY A LOAD OR SALES CHARGE EXISTING SHAREHOLDERS CAN CONTINUE TO PUT MONEY INTO THE FUND MR CASTEGREN A RECLUSIVE SWEDE WHO RARELY TALKS TO THE NEWS MEDIA OR TO FUND ANALYSTS RUNS THE FUND FROM BERMUDA HARBOR A US FUND TURNED IN THE BEST PERFORMANCE FOR A FUND INVESTING IN FOREIGN STOCKS DURING THE FIVE YEARS THROUGH THE END OF JULY WITH A 15 ANNUAL GAIN ACCORDING TO CHICAGO NEWSLETTER MORNINGSTAR MUTUAL FUNDS THAT GAIN CAME DESPITE MEAGER RETURNS IN FOREIGN MARKETS FOREIGN FUNDS HAVE TURNED IN GOOD PERFORMANCES SO FAR THIS YEAR AS MARKETS OVERSEAS HAVE SURGED US FUND INVESTORS HAVE RESPONDED BY THROWING MONEY INTO INTERNATIONAL FUNDS MR CASTEGREN LOOKS FOR STOCKS THAT APPEAR INEXPENSIVE COMPARED WITH SUCH MEASURES AS ASSETS OR EARNINGS AND HE FOUND IT DIFFICULT TO PUT ALL THE NEW MONEY TO WORK IN STOCKS THAT HE LIKED SAYS RONALD BOLLER PRESIDENT OF THE HARBOR FUNDS WE GOT ALL THE MONEY WE COULD TAKE MR BOLLER SAYS ENOUGH IS ENOUGH MR CASTEGREN ALSO RUNS IVY INTERNATIONAL FUND WHICH REMAINS OPEN TO INVESTORS IT HAS A 58 LOAD OR SALES CHARGE 9309160125 930916 INTERNATIONAL AS ELECTION DAY NEARS GOVERNING POLITICIANS IN POLAND WONDER WHERE THEY WENT WRONG BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WARSAW THE POLITICIANS WHO HAVE GOVERNED POLAND SINCE COMMUNISM FOLDED FOUR YEARS AGO HAVE DONE WELL AT EVERYTHING EXCEPT POLITICS WITH A 3 PRODUCTION RISE IN THE CARDS THE POLES HAVE LEFT THEIR SHOCKTHERAPY RECESSION BEHIND AND COULD END THIS YEAR WITH THE FASTESTGROWING ECONOMY IN EUROPE THAT PREDICTION MAKES ANOTHER ALL THE HARDER TO GRASP IN THE COUNTRY'S SECOND FULLY FREE ELECTION THIS SUNDAY THE COMMUNISTS COULD COME OUT ON TOP WITNESS THE REVERSE IMAGES AT A WARSAW WEEKEND STREET FAIR A LONE SOLIDARITY BANNER HANGS FROM A COCACOLA UMBRELLA THE ONCELOVED MASS MOVEMENT HAS BEEN REDUCED TO A RADICALIZED TRADE UNION ABANDONED BY ITS HERO LECH WALESA AS ITS CAMPAIGNERS TRY TO HAND OUT LEAFLETS THE CROWDS MOVE PAST WITHOUT A SECOND LOOK WILL A FACTORY WORKER NAMED MIROSLAW VOTE FOR SOLIDARITY ABSOLUTELY NOT HE SAYS IT'S ONE BIG POLITICAL CHEAT DOWN THE STREET POLAND'S EXCOMMUNISTS HAVE SET UP A SIDEWALK CAFE THEIR POSTERS TAPED TO BEER UMBRELLAS HERE PEOPLE STOP TO EAT A SAUSAGE AND REACH AROUND THE FILM CREWS FOR SOME PAMPHLETS A TEACHER IN THE CROWD KNOWS WHO WILL GET HER VOTE WE WERE PROMISED ALL KINDS OF THINGS IN FOUR YEARS SHE SAYS IT WAS GOING TO GET BETTER EVERY MONTH BUT IT NEVER DID THIS ISN'T A PARTY THAT'S GOING TO PROMISE WHAT IT CAN'T DO IT'S ONE OF THE FEW THAT CARES ABOUT PEOPLE AFTER SOLIDARITY TROUNCED THEM IN 1989 POLAND'S COMMUNISTS DISTILLED THEMSELVES INTO A PARTY OF MARKET SOCIALISTS AND BIDED THEIR TIME AS CAPITALISM BLOOMED AND BROUGHT WITH IT THE KIND OF PERCEIVED INEQUALITIES THEIR FOREBEARS HAD BERATED FOR 45 YEARS FOUR GOVERNMENTS TOTTERED IN AND OUT OF OFFICE MEANWHILE BARELY KEEPING ECONOMIC TRANSFORMATION ON TRACK BY LAST JUNE WHEN PRIME MINISTER HANNA SUCHOCKA'S CABINET FELL BY A SINGLE VOTE UNEMPLOYMENT WAS NEARING 16 AND THE COUNTRY WAS SPLIT BETWEEN HAVES AND HAVENOTS SO THE EXCOMMUNISTS OF THE DEMOCRATIC LEFT ALLIANCE WENT INTO THIS CAMPAIGN WITH A SLOGAN THAT HIT HOME WE DON'T HAVE TO GO ON LIKE THIS NOW POLLS GIVE THE LEFT ALLIANCE MORE THAN 30 OF THE VOTE PLUS 20 TO THE POLISH PEASANT PARTY A REFORMED EDITION OF AN OLDREGIME PUPPET THERE'S A GROWING CONVICTION THAT SOMETHING ELSE IS POSSIBLE SAYS ALLIANCE VICE CHAIRMAN LESZEK MILLER WHOSE PREVIOUS JOB WAS AS CENTRAL COMMITTEE SECRETARY OF THE COMMUNIST PARTY OF THE PEOPLE'S REPUBLIC OF POLAND THIS DOESN'T HAVE TO MEAN THAT EXCOMMUNISTS WILL REGAIN POWER IN THE COUNTRY THAT LABORED HARDEST TO THROW THEM OUT POLES DON'T ALWAYS TELL ALL TO POLLSTERS AND THE PEASANT PARTY MAY REFUSE TO ALLY WITH THE LEFT ALLIANCE PREFERRING A TAMER COALITION WITH SOLIDARITY'S FORMER ADVISERS IN MS SUCHOCKA'S PARTY THE DEMOCRATIC UNION BUT THAT LEADS SOME TO DARKER VISIONS ANOTHER SHAKY COALITION A LOUD LEFTIST OPPOSITION REDBAITING DEMONSTRATIONS ON THE STREETS AND LECH WALESA'S DECLARATION OF PRESIDENTIAL RULE THOSE WHO SEE A GRAVE THREAT TO DEMOCRACY MAY BE GOING TOO FAR BUT POLAND IS SENSING THE SAME MOOD SWING THAT CARRIED THE LEFT BACK TO PROMINENCE IN LITHUANIA LAST YEAR IT MAY DO THE SAME IN HUNGARY NEXT YEAR AND IN RUSSIA SOONER STILL THE SHOCK LEAVES POLISH POLITICIANS WONDERING WHERE THEY WENT WRONG JUST AFTER MS SUCHOCKA'S FALL THEY TOOK WHAT SEEMED LIKE A BIG STEP FORWARD PARLIAMENT REWROTE AN ELECTION LAW THAT HAD ALLOWED ALMOST ANYBODY TO RUN FOR OFFICE THIS ELIMINATED THE PRIVATE PARTY OF CITIZENS OF THE WORLD THE PARTY OF THE MOTORIZED THE BALDIES' PARTY AND THE UNION OF COMMON SENSE IT FORCED LIKEMINDED GROUPS INTO COALITION AND MADE POLITICS SLIGHTLY MORE COMPREHENSIBLE BUT THE LAW DIDN'T ADDRESS A DEEPENING RESENTMENT TOWARD GOVERNMENTS RUN BY FREEMARKETEERS WITH LITTLE SYMPATHY FOR THIS NEW SOCIETY'S LEGION OF LOSERS BARELY 13 YEARS AGO SOLIDARITY STARTED BECAUSE AN ELDERLY WORKER WAS FIRED WITHOUT REGARD FOR HER RIGHTS SAYS POLITICAL COMMENTATOR KOSTEK GEBERT SOLIDARITY WAS A MOVEMENT FOR SOCIAL JUSTICE WHAT WE DID IN 89 WAS TO CONVINCE PEOPLE THAT INDEPENDENCE AND DEMOCRACY WERE BETTER THAN SOCIAL JUSTICE IT WORKED FOR A TIME IT'S NOT WORKING ANYMORE ALEKSANDER SMOLAR A POLITICAL SCIENTIST AND ADVISER TO MS SUCHOCKA PRONOUNCED SUEHOTSKA CONCEDED IN AN ESSAY PUBLISHED LAST WEEK WE HAVEN'T LEARNED HOW TO SHOW THE SENSE OF HUMAN SUFFERING EXPLAIN TO PEOPLE WHY THE PRESENT HIGH COSTS ARE WORTH ENDURING AND WHY WE MUST MAKE SACRIFICES TODAY WITH THE EXCEPTION OF LABOR MINISTER JACEK KURON PROF SMOLAR ARGUED NO ONE HAS SAID WE UNDERSTAND YOUR PAIN WORRY AND FEARS YOU HAVE THE RIGHT TO FEEL THAT YOU HAVE THE RIGHT TO BE AFRAID NOBODY BUT THE LEFT ALLIANCE THAT IS THERE ARE POSITIVE MEMORIES FROM THE PAST SAYS ITS VICE CHAIRMAN MR MILLER SOCIAL SECURITY EASY ACCESS TO EDUCATION CULTURE AND MEDICINE ALL THE AREAS THAT ARE SHRINKING RAPIDLY NOW THE COSTS OF REFORM ARE BORNE BY THE WORST OFF THE EXCOMMUNISTS SAYS MR MILLER ARE TRUE BELIEVERS IN FREE MARKETS AND FISCAL PROBITY BUT THEY ALSO BELIEVE IN FREE EDUCATION AND FREE HEALTH CARE THEY CAN'T STAND IDEOLOGICAL DEVOTION TO PRIVATE OWNERSHIP AND WANT TO LOOSEN THE INTERNATIONAL MONETARY FUND'S CORSET ON DEFICIT SPENDING THE LEFT ALLIANCE HE SAYS WOULD GUARANTEE BASIC HUMAN NEEDS BUT THAT ISN'T THE ONLY PROMISE LURING POLES LEFTWARD MANY STILL HAVEN'T GOTTEN OVER THE EFFECTS OF A GOVERNMENT THAT HELD POWER FOR NINE MONTHS AFTER THE LAST NATIONAL ELECTION TWO YEARS AGO A 13PARTY AMALGAM OF RABID ANTICOMMUNISTS AND ROMAN CATHOLIC NATIONALISTS THE CHURCH WON FEW FRIENDS WHEN THAT CABINET ENGINEERED AN ALMOSTTOTAL BAN ON ABORTION THE LEFT ALLIANCE WANTS IT REPEALED THE CHURCHBACKED GOVERNMENT SPENT MUCH OF ITS TIME DISCLOSING SUPPOSED CONNECTIONS BETWEEN SOLIDARITY LEADERS AND THE COMMUNIST SECRET POLICE BUT MOST POLES WOULD HAVE NONE OF IT UNLIKE THE CZECHS WHO ENDURED A NASTIER RULE IN THE 1980S THEY HAD NO NEED OF WITCH HUNTS THE REDBAITERS WERE SWIFTLY DRIVEN FROM OFFICE YET THE BAD AFTERTASTE HAS GIVEN THE LEFT ALLIANCE ITS CORE SUPPORT 900000 MEMBERS OF THE OLD REGIME'S NOMENKLATURA IF THE POLLS ARE BELIEVABLE THE ANTICOMMUNISTS WON'T GET A SINGLE SEAT IN PARLIAMENT A STABLE NEW GOVERNMENT COULD KEEP THEM QUIET BUT INSTABILITY MIGHT PROMPT THEM TO START A PROTEST MOVEMENT THAT MIGHT ALSO ATTRACT THE MASS OF NONVOTERS FED UP WITH DEMOCRATIC POLITICS THAT'S WHERE LECH WALESA MIGHT STEP IN WHO ELSE DEMANDS JACEK SZYMANDERSKI IF THIS SOCIETY IS RIPPED APART WHO ELSE IS GOING TO WELD IT TOGETHER MR SZYMANDERSKI IS SPOKESMAN FOR A WALESAINSPIRED GROUP RUNNING IN THIS CAMPAIGN TO DRAIN VOTES FROM THE LEFT CALLED THE NONPARTY BLOC TO SUPPORT REFORM IT WANTS MORE PRESIDENTIAL POWER AN ITEM ON MR WALESA'S WISH LIST SINCE HIS OWN ELECTION IN 1990 THE BLOC ISN'T DOING WELL IN THE POLLS EITHER BUT ONE MORE POLITICAL CRISIS PLUS A BURST OF UNREST MIGHT BRING IT TO THE FORE IN YET ANOTHER POLISH ELECTION 9309160124 930916 CORRECTIONS & AMPLIFICATIONS COMPANIES WITH UNDERFUNDED PENSION PLANS WILL HAVE TO REPORT MORE FREQUENTLY AND IN MORE DETAIL ON THEIR PENSION OBLIGATIONS AND FINANCIAL CONDITION UNDER RECOMMENDATIONS BEING PREPARED BY A FEDERAL TASK FORCE AN ARTICLE YESTERDAY INCORRECTLY STATED THAT ALL COMPANIES WOULD FACE THE STRICTER REPORTING REQUIREMENTS 9309160122 930916 WHO'S NEWS T2 MEDICAL INC TAPS A COFOUNDER CARTER TO BE ITS NEW CHIEF EXECUTIVE BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA T2 MEDICAL INC GRAPPLING WITH A SHAKEUP IN ITS EXECUTIVE OFFICES AND RECENTLY DISCLOSED DISCREPANCIES IN ITS FINANCIAL FILINGS IS REACHING INTO ITS PAST FOR A NEW PRESIDENT AND CHIEF EXECUTIVE THE NINEYEAROLD HOME HEALTHCARE CONCERN YESTERDAY NAMED TOMMY H CARTER ITS COFOUNDER TO SUCCEED JOSEPH C ALLEGRA WHO RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER IN AUGUST MR CARTER 51 YEARS OLD WAS PRESIDENT OF T2 PRONOUNCED TSQUARED BEFORE HIS RETIREMENT FROM THE COMPANY IN 1990 DR ALLEGRA LEFT T2 THE SAME DAY THE COMPANY DISCLOSED THAT IT HAD DISCOVERED ACCOUNTING IRREGULARITIES AND ERRORS THAT PROMPTED T2 TO CUT ITS PREVIOUSLY REPORTED EARNINGS FOR THE FIRST AND SECOND QUARTERS OF 1993 ALSO AT THAT TIME DAVID HERSH CHIEF FINANCIAL OFFICER TOOK ADMINISTRATIVE LEAVE WITH PAY THE COMPANY HAS DECLINED TO COMMENT ON WHETHER THE TWO DEPARTURES WERE TIED TO THE ACCOUNTING PROBLEMS DR ALLEGRA AND MR HERSH HAVE ALSO DECLINED TO COMMENT NEW WORLD MR CARTER WILL ALSO SERVE AS A DIRECTOR HE PREVIOUSLY WAS PRESIDENT FROM OCTOBER 1984 TO OCTOBER 1989 AND DIRECTOR FROM 1984 UNTIL 1990 MR CARTER DIDN'T RETURN PHONE CALLS YESTERDAY AND EXECUTIVES AT T2 DECLINED TO COMMENT ON THE APPOINTMENT MR CARTER WHOSE FIRST INITIAL REPRESENTS ONE OF THE TS IN T2THE OTHER BELONGS TO THOMAS E HAIRE CHAIRMANBRINGS A DEEP UNDERSTANDING OF THE COMPANY'S CORE BUSINESS HOMEINFUSION THERAPY AT A TIME WHEN THAT SEGMENT HAS BEEN FLAGGING T2 REVENUE FROM HOMEINFUSION THERAPY WHICH IS THE INTRAVENOUS DELIVERY OF DRUGS IN THE HOME FELL 20 IN ITS FISCAL THIRD QUARTER ENDED JUNE 30 FALLING TO 413 MILLION FROM 517 MILLION DURING THE YEAREARLIER PERIOD HOMEINFUSION THERAPY GENERATES APPROXIMATELY TWOTHIRDS OF THE COMPANY'S REVENUE OTHER T2 OPERATIONS INCLUDE LITHOTRIPSY FOR THE TREATMENT OF KIDNEY STONES AND INFUSION SERVICES AT OTHER SITES SUCH AS OUTPATIENT CENTERS MR CARTER HOWEVER ONCE A BAXTER INTERNATIONAL MEDICAL SUPPLY SALESMAN IS RETURNING TO A VASTLY CHANGED HEALTHCARE INDUSTRY PRICE PRESSURES FROM MANAGEDCARE PROVIDERS AND INCREASED COMPETITION ARE SQUEEZING COMPANIES LIKE T2 AS NEVER BEFORE THE COMPANY IN FACT CITED PRESSURE FROM INSURERS WHEN IT DISCLOSED THE ACCOUNTING ERRORS WHICH INCLUDED A SEVERE OVERESTIMATION OF RECEIVABLES MR CARTER ALSO MUST DECIDE WHETHER TO ALTER THE COMPANY'S HIGHLY CONTROVERSIAL DOCTORPARTICIPATION ARRANGEMENTS T2 BUILT ITS BUSINESS BY HELPING PHYSICIANS START UP THEIR OWN THERAPY CENTERS T2 MANAGES THE CENTERS FOR A FEE UNTIL IT BUYS THE PHYSICIANS OUT WITH COMPANY STOCK THAT STOCK USUALLY IS RESTRICTED FROM SALE FOR TWO YEARS STRATEGY QUESTIONED IN RECENT MONTHS CONGRESS AND THE PUBLIC HAVE QUESTIONED WHETHER SUCH ARRANGEMENTS RESULT IN EXCESSIVE SERVICES AND COSTS IN ANY EVENT ANALYSTS AND OTHER INDUSTRY OBSERVERS BELIEVE T2 CAN'T CONTINUE BUSINESS AS USUAL THIS COMPANY LONG TERM IS GOING TO HAVE TO ELIMINATE THE JOINT VENTURE CONCEPT SAID JOEL M RAY ANALYST WITH KIDDER PEABODY & CO THE PUBLIC DOESN'T LIKE IT IT'S THAT SIMPLE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE T2 SHARES FELL 25 CENTS TO 5875 9309160121 930916 ENTERPRISE FAST TRACK COMPANY MEETS SMASHING SUCCESS IN WRECKED AUTOS RISKY PURCHASING POLICY COMPUTERS HELP AUCTIONEER BOOST REVENUE BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL BRADLEY SCOTT LOVES JUNK TWELVE YEARS AGO MR SCOTT THEN A SALES MANAGER IN THE FILM INDUSTRY AND AN AUTO BUFF WANTED TO RESTORE A WRECKED CAR AS A GIFT FOR HIS WIFE BUT HE WAS SHOCKED TO DISCOVER HOW MUCH HE HAD TO PAY A BUYER TO PURCHASE IT FOR HIM AT AN AUCTION I FIGURED THAT IF THERE WAS SUCH A SPREAD BETWEEN WHAT HE PAID FOR THE CAR AND WHAT I WAS WILLING TO PAY HIM FOR IT THERE MUST BE A MARKET SAYS MR SCOTT INDEED THERE WAS A THRIVING MARKET FOR WRECKED AUTOMOBILES AND IT INSPIRED MR SCOTT TO START A BUSINESS IN THE 11 YEARS SINCE HE HAS BUILT INSURANCE AUTO AUCTIONS INC OF NORTH HOLLYWOOD CALIF INTO ONE OF THE COUNTRY'S MOST SUCCESSFUL AUCTIONEERS OF WRECKED AUTOS THEY'RE ONE OF THE VERY BEST SAYS DARELL KIMBELL PROPERTYCLAIMS MANAGER WITH STATE FARM MUTUAL AUTOMOBILE INSURANCE CO IN WESTLAKE VILLAGE CALIF THEY'VE GOT RESPONSIVE MANAGEMENT THAT'S INTERESTED IN RUNNING A BUSINESS INSTEAD OF JUST DISPOSING OF SALVAGE EACH YEAR BETWEEN TWO MILLION AND THREE MILLION CARS DAMAGED IN ACCIDENTS ARE DECLARED TOTAL LOSSES BY INSURANCE COMPANIES THE INSURERS PAY THE OWNERS THE MARKET VALUE OF THE VEHICLES ASSUME TITLE TO THEM AND TURN THEM OVER TO SALVAGE COMPANIES TRADITIONALLY THE SALVAGE COMPANIES AUCTION OFF THE WRECKS TO JUNKYARD OWNERS AND USEDCAR DEALERS FOR A COMMISSION OF ABOUT 50 A CAR THEY ALSO CHARGE FOR TOWING STORAGE AND OTHER EXTRAS ANALYSTS SAY THE 3 BILLIONAYEAR SALVAGE INDUSTRY IS DOMINATED BY SMALL COMPANIES WITH REVENUE OF UNDER 12 MILLION BUT INSURANCE AUTO TOOK A FRESH APPROACH THAT MANY INSURERS LIKED IT OFFERED TO PURCHASE ENTIRE LOTS OF CAR WRECKS AT A FIXED PRICE RATHER THAN ON COMMISSION AND THEN AUCTIONED THE CARS FOR ITSELF THIS GAVE INSURERS A MORE PREDICTABLE CASH FLOW AND INSURANCE AUTO A CHANCE TO MAKE MORE MONEY WHAT WE FOUNDED THE COMPANY ON WAS THE PREMISE THAT INSURANCE COMPANIES WERE NOT DISPOSING OF THEIR SALVAGE IN THE MOST COSTEFFECTIVE WAY SAYS MR SCOTT A LOT OF MY PEERS THOUGHT IT WAS FINANCIAL SUICIDE TO USE THE PURCHASE METHOD BECAUSE OF THE RISK OF TRYING TO BUY ALL OF THESE SALVAGED CARS AT ONCE AND MAINTAIN A FAVORABLE RETURN BECAUSE HE HAD TROUBLE GETTING BANK FINANCING IN THE EARLY DAYS MR SCOTT REQUIRED BUYERS TO MAKE CASH DEPOSITS USING THE MONEY TO BUY MORE CARS HE RAISED OPERATING CAPITAL IN THAT FASHION UNTIL HE HAD A TRACK RECORD THAT APPEALED TO BANKS MR SCOTT ALSO GAVE HIMSELF A BOOST BY INVITING BODY SHOPS WHICH NORMALLY BOUGHT SALVAGE FROM JUNK DEALERS TO HIS AUCTIONS THE MOVE HEATED UP THE BIDDING AND PUSHED PRICES UP ULTIMATELY MR SCOTT SAYS INSURANCE AUTO SNARED CONTRACTS WITH SUCH MAJOR INSURERS AS ALLSTATE CORP STATE FARM NATIONWIDE MUTUAL INSURANCE CO AND FARMERS INSURANCE GROUP A UNIT OF BA T INDUSTRIES PLC OF BRITAIN IN 1991 TO FINANCE AN ACQUISITION SPREE AND PAY OFF DEBT INSURANCE AUTO OFFERED SHARES TO THE PUBLIC FOR 11 EACH THE STOCK CLOSED YESTERDAY AT 33 UP 1 IN OVERTHECOUNTER TRADING WITH PROCEEDS FROM THE INITIAL AND SUBSEQUENT PUBLIC OFFERINGS INSURANCE AUTO ACQUIRED SIX OTHER SALVAGE OPERATIONS ON THE WEST COAST THE COMPANY SAYS IT NOW CONTROLS 80 OF THE SALVAGE MARKET IN OREGON ARIZONA AND HAWAII AND 40 IN CALIFORNIA ALTHOUGH THE COMPANY IS BIG IN THE WEST MAJOR SALVAGE COMPANIES IN OTHER PARTS OF THE COUNTRY SAY THEY AREN'T WORRIED ABOUT INSURANCE AUTO'S EXPANSION AMBITIONS THEIR METHODS WORK OUT THERE SAYS RICHARD POLIDORI PRESIDENT OF NEW ENGLAND RECOVERY INC IN NEWINGTON CONN ONE OF THE LARGEST SALVAGE OPERATORS ON THE EAST COAST BUT THEIR METHOD OF BUYING AND SELLING ISN'T GOING TO BE AS PROFITABLE HERE WE CAN'T AUCTION TO THE PUBLIC BECAUSE SOME STATES FORBID SUCH ACTIVITY HE SAYS INSURANCE AUTO SAYS THAT ONLY A SMALL PERCENTAGE OF ITS AUCTIONS ARE OPEN TO THE PUBLIC AND ADDS THAT THAT SEGMENT OF ITS BUSINESS HAS NO REAL BEARING ON ITS PROFITABILITY BY EARLY NEXT YEAR THE COMPANY SAYS IT WILL HAVE COMPLETED A 3 MILLION PROGRAM TO COMPUTERIZE ITS INFORMATION SYSTEMS THIS INCLUDES THE USE OF OPTICAL IMAGING TO STORE VIDEO RECORDINGS OF WRECKS AND THEIR PURCHASERS ON LASER DISK AND TO HELP ACHIEVE ITS GOAL OF EVENTUALLY PROVIDING SERVICE NATIONWIDE INSURANCE AUTO HAS BARCODED THE TITLES TO WRECKS SO THEY CAN BE READ WITH A SCANNER THE COMPANY SAYS THIS HAS ALLOWED IT TO COMPILE A DATABASE OF INFORMATION IT CAN SHARE WITH INSURERS ON A NATIONAL BASIS MEANWHILE THE COMPANY FACES A CHALLENGE SAFER ROADS THE SOURCE OF VEHICLES FOR MY MEMBERS IS GOING DOWN BECAUSE INSURANCE COMPANIES ARE SAYING THERE ARE FEWER COLLISIONDAMAGED VEHICLES SAYS NORMAN GRUNSTAD EXECUTIVE DIRECTOR OF THE AMERICAN SALVAGE POOL ASSOCIATION A TRADE GROUP BASED IN PHOENIX SO THE COMPETITION IS BECOMING VERY FIERCE 9309160120 930916 BUSINESS BRIEF CANANDAIGUA WINE CO CONCERN TO PAY 143 MILLION PLUS OPTIONS FOR VINTNERS CANANDAIGUA WINE CO SAID IT IS PAYING 143 MILLION PLUS STOCK OPTIONS CURRENTLY VALUED AT 2 MILLION TO ACQUIRE VINTNERS INTERNATIONAL CO THE CANANDAIGUA NY COMPANY ANNOUNCED ITS PLANS TO BUY VINTNERS IN JULY BUT DIDN'T DISCLOSE TERMS THEN YESTERDAY THE COMPANY SAID IT HAS SIGNED A DEFINITIVE AGREEMENT TO COMPLETE THE PURCHASE BY MIDOCTOBER THE TOTAL PURCHASE PRICE INCLUDES 133 MILLION FOR VINTNER'S AND 10 MILLION TO PAY FOR VINTNERS' GRAPE HARVEST THAT WILL BE A CONTINUING YEARLY EXPENSE ALSO CANANDAIGUA WILL GIVE VINTNERS 500000 OPTIONS TO BUY CANANDAIGUA COMMON STOCK AT 1825 A SHARE CANANDAIGUA SHARES CLOSED YESTERDAY AT 2225 UNCHANGED IN NATIONAL OVERTHECOUNTER TRADING CANANDAIGUA SAID IT WON'T ASSUME ANY OF VINTNERS' DEBT TO LENDERS AND DOESN'T EXPECT THE TRANSACTION TO RESULT IN ANY SIGNIFICANT GOODWILL FOR ACCOUNTING PURPOSES A SPOKESWOMAN SAID THE PURCHASE WILL BE FINANCED WITH BANK BORROWINGS 9309160119 930916 INTERNATIONAL JAPAN BEGINS TO CONFRONT JOB INSECURITY SAFETY NET ISN'T ADEQUATE AS TABOO AGAINST LAYOFFS FADES BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FOR YEARS AN EXPANDING ECONOMY WAS JAPAN'S SOCIAL SAFETY NET UNEMPLOYMENT INSURANCE AND WELFARE WERE SUPERFLUOUS IN A ROBUST ECONOMY STRAINING TO ADD CAPACITY AND OPERATING ALMOST AT FULL EMPLOYMENT BUT AS JAPAN'S ECONOMY REMAINS MIRED IN A GRIM DOWNTURN A DEBATE IS WIDENING OVER WHETHER BIG BUSINESS STILL CAN AFFORD JAPAN'S PATERNALISTIC LABOR PRACTICES INCLUDING ITS VAUNTED GUARANTEED LIFETIME EMPLOYMENT AND FEARS ARE SPREADING THAT MAJOR CORPORATIONS WILL SOON BE FORCED TO LAY OFF WORKERS PERHAPS ON A LARGE SCALE JAPANESE ARE WONDERING WHETHER THEIR NATION CAN COPE WITH SUBSTANTIAL UNEMPLOYMENT FOR THE FIRST TIME IN OUR POSTWAR HISTORY WE ARE GOING TO EXPERIENCE LABOR INSECURITY SAID YUKIO OKAMOTO A FORMER GOVERNMENT OFFICIAL WHO NOW ADVISES JAPANESE CORPORATIONS UNTIL NOW JAPAN'S BLUECHIP CORPORATIONS HAVE WEATHERED DOWNTURNS MAINLY BY CUTTING OVERTIME AND BONUSES REDUCING HIRING AND ASKING EMPLOYEES SOMETIMES FIRMLY TO TAKE EARLY RETIREMENT BIG COMPANIES GENERALLY HAVE SHUNNED USSTYLE FIRINGS TABOO IN JAPAN BUT THE CURRENT RECESSION IS LONGER AND TOUGHER THAN EXPECTED AND GOVERNMENT AND INDUSTRY OFFICIALS SAY COMPANIES SOON MAY HAVE NO CHOICE MOST COMPANIES ARE TRYING TO AVOID LAYOFFS SAID A SENIOR OFFICIAL AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY BUT THE LIMIT IS GETTING VERY CLOSE NOBODY EXPECTS JOBLESSNESS IN JAPAN TO REACH LEVELS OF THE US 65 OR WESTERN EUROPE 114 BUT MANY ECONOMISTS EXPECT THE UNEMPLOYMENT RATE WHICH WAS 25 IN JULY TO PASS 3 BY MID1994 UNUSUALLY HIGH BY JAPANESE STANDARDS IN PREVIOUS DOWNTURNS JAPANESE EXECUTIVES ASSUMED THE DROP IN BUSINESS WAS CYCLICAL THAT SALES WOULD SOON GROW AGAIN AND THAT HIRING WOULD EXPAND THE GOVERNMENT EVEN SUBSIDIZED CORPORATIONS TO PROTECT THE NOLAYOFF POLICY WHILE WESTERN GOVERNMENTS GIVE MONEY TO WORKERS AFTER THEY LOSE THEIR JOBS TOKYO PAYS DISTRESSED COMPANIES NOT TO LAY OFF WORKERS BUT SUCH POLICIES MAY HAVE BOOSTED COMPLACENCY AT CORPORATIONS AND MAY MASK THE TRUE SCALE OF UNEMPLOYMENT IN JAPAN MASARU TAKAGI AN ECONOMIST AT THE FUJI RESEARCH INSTITUTE ESTIMATED 15 MILLION INHOUSE UNEMPLOYED WORKERS ARE ON COMPANY PAYROLLS THEY AREN'T COUNTED IN THE UNEMPLOYMENT STATISTICS JAPANESE OFFICIALS STILL HOPE TO AVOID PAINFUL DISLOCATIONS PRIME MINISTER MORIHIRO HOSOKAWA IS EXPECTED TO UNVEIL TODAY PLANS TO SPEND AS MUCH AS SIX TRILLION YEN 60 BILLION MORE TO DOUSE THE RECESSION WITH HEAVY PUBLIC SPENDING THE THIRD SUCH GOVERNMENT ATTEMPT IN THE PAST YEAR BUT ANALYSTS SAY THAT WITH JAPAN IN TRANSITION TO A HIGHCOST ECONOMY SUCH CONVENTIONAL METHODS WON'T WORK THERE IS SOMETHING RATHER NEW IN THIS RECESSION SAID HARUO SHIMADA AN ECONOMIST AT KEIO UNIVERSITY BECAUSE OF THE RECENT SHARP RISE IN THE VALUE OF THE YEN JAPANESE MANUFACTURING COSTS ARE PROBABLY THE HIGHEST IN THE WORLD HE SAID IN EARLIER RECESSIONS JAPANESE COMPANIES COULD GAIN INTERNATIONAL COMPETITIVENESS IF THEY RATIONALIZED PRODUCTION THIS TIME HE SAID JAPAN ISN'T GOING TO HAVE INTERNATIONAL COMPETITIVENESS NO MATTER WHAT IT DOES OTHERS SAY JAPAN'S ECONOMY IS MATURING AND THAT IN A NEW SLOWGROWTH ERA COMPANIES WON'T NEED THE SAME SIZE WORK FORCE LIKE THE US AND EUROPE THE FEELING IS SPREADING HERE THAT EVEN WHEN THE RECESSION ENDS NEW JOBS WON'T BE CREATED IN LARGE NUMBERS SOME CRITICS SAY JAPAN'S CONVENTIONAL LABOR PRACTICES ACTUALLY HURT THE ECONOMY BY MAKING IT HARDER FOR CORPORATIONS TO GO THROUGH MUCHNEEDED CHANGES IN A RECENT BANK SURVEY MORE THAN A THIRD OF THE COMPANIES SAID THE BIGGEST OBSTACLE TO RESTRUCTURING WAS THE INABILITY TO LAY OFF WORKERS IN THE LONG RUN WE ARE GOING TO HAVE TO HAVE A FLUID LABOR MARKET SAID ECONOMIST ATSUSHI SEIKE ALSO OF KEIO UNIVERSITY TO SOME EXTENT THERE IS SOMETHING WE CAN LEARN FROM THE US EXPERIENCE MR SHIMADA HAS PROPOSED CHANGING GOVERNMENT POLICIES THAT LEAD WORKERS TO STAY WITH COMPANIES AND HE ENDORSES TAX BREAKS TO ENCOURAGE WHITECOLLAR WORKERS TO GET MORE COURAGEOUS AND PLUNGE INTO NEW BUSINESSES ANALYSTS SAY A RISE IN JOBLESSNESS IN JAPAN WOULD LIKELY CAUSE LESS IMMEDIATE TANGIBLE PAIN THAN IN OTHER NATIONS DIRECT COMPARISONS ARE DIFFICULT BUT UNEMPLOYMENT INSURANCE GOVERNMENT RETRAINING PROGRAMS PENSIONS AND OTHER SAFETYNET PROVISIONS SEEM MORE GENEROUS THAN IN THE US AND JAPAN'S NATIONAL HEALTH INSURANCE MEANS THE UNEMPLOYED WON'T FALL THROUGH THE CRACKS FOR MEDICAL COVERAGE BUT MAJOR LAYOFFS WOULD CAUSE A TREMENDOUS PSYCHOLOGICAL SHOCK INDEED SOME ECONOMISTS SAY JUST THE TALK OF SUCH MOVES COULD FURTHER DAMP CONSUMER CONFIDENCE HURTING THE ECONOMY EVEN MORE THE DISMAL CONDITION IN CONSUMER CONFIDENCE ISN'T ONLY BECAUSE OF THE CURRENT SITUATION SAID KOZO KOIDE SENIOR ECONOMIST AT THE INDUSTRIAL BANK OF JAPAN BUT ANXIETY ABOUT THE FUTURE MOST COMPANIES ARE STILL SEEKING YET MORE SAVINGS WITHOUT LAYOFFS THE BIG COMPANIES ARE VERY TIMID ABOUT EMPLOYING SUCH MEASURES SAID TAKEO NARUSE OF THE JAPAN FEDERATION OF EMPLOYERS' ASSOCIATIONS TOSHIBA CORP THIS MONTH SAID IT WOULD CUT ITS PAYROLL BY 66 OR 5000 JOBS OVER THE NEXT SEVERAL YEARS BUT INSISTED IT WOULDN'T FIRE ANYBODY NIPPON TELEGRAPH & TELEPHONE CORP SAID LAST MONTH IT WOULD CUT 10000 EMPLOYEES BY 1995 WITH AN EARLY RETIREMENT PROGRAM AVAILABLE TO WORKERS AS YOUNG AS 40 YEARS OLD TOYOTA MOTOR CORP TWO MONTHS AGO TRANSFERRED 20 OF ITS 4000 JAPANESE ADMINISTRATIVE WORKERS TO NEW DIVISIONS BUT THOSE MEASURES CAN ONLY SAVE SO MUCH IN A FEW MONTHS SAID MR SHIMADA COMPANY AFTER COMPANY WILL START ANNOUNCING LAYOFFS MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9309160118 930916 SMALL STOCK FOCUS MARKET'S RECENT LOSSES ARE ERASED AMID HEALTHY BUYING BOND REBOUND BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK A REBOUND IN THE BOND MARKET AND A HEALTHY DOSE OF BUYING HELPED SMALLCOMPANY STOCKS ERASE THEIR LOSSES OF THE PAST SEVERAL TRADING SESSIONS THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES GAINED 087 POINT OR 04 TO 24532 SMALL STOCKS WERE KNOCKED LOWER TUESDAY AFTER BOND PRICES TUMBLED ON NEWS THAT CONSUMER PRICES ROSE A SLUMP IN TECHNOLOGY ISSUES ALSO HELPED BRING THE MARKET LOWER BUT STOCKS RALLIED YESTERDAY AFTER BONDS LIFTED OFF THEIR LOW IT BROUGHT EVERYTHING BACK UP SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS LIKE OTHER MARKET OBSERVERS MR GOLDMAN SAID THE RECENT SLUMP IN SMALL STOCKS IS JUST A CORRECTION FROM THE HUGE RUNUPS OF THE SUMMER WE'RE STILL IN A BULL MARKET BUT THE CONSOLIDATION IS NOT OVER IT'S A GOOD REBOUND HE SAID IN A BULL MARKET A SELLOFF IS NEVER AS UNPLEASANT AS EVERYONE THINKS MR GOLDMAN SAID NOTIONS ABOUT BOND MARKET SLUMPS AND WORRIES ABOUT INFLATION AREN'T TRULY FACTORS BEHIND STOCKS' DRIFT LOWER RECENTLY THOSE ARE JUST EXCUSES THE MARKET JUST GOT AHEAD OF ITSELF HE SAID SOME TECHNOLOGY STOCKS THAT TUMBLED TUESDAY IN THE WAKE OF NEGATIVE COMMENTS FROM COMPAQ COMPUTER RECOVERED YESTERDAY COMPAQ A TECHNOLOGY STOCK LISTED ON THE NEW YORK STOCK EXCHANGE SAID ITS PERSONAL COMPUTER SHIPMENTS WERE EXPECTED TO BE FLAT FOR THE SECOND HALF OF THIS YEAR LARRY KINNEY HEAD OF OTC TRADING AT SOUNDVIEW FINANCIAL GROUP SAID HE THOUGHT SOME TECHNOLOGY ISSUES MOVED HIGHER AS THE RESULT OF A TECHNICAL BOUNCE SOME WERE SO OVERSOLD THAT THEY WERE DUE FOR A TECHNICAL BOUNCE HE SAID THERE WAS ALSO SOME SHORTCOVERING READRITE CORP A MANUFACTURER OF DISKDRIVE COMPONENTS CLIMBED 3/8 TO 10 3/8 ALTERA CORP A PERSONAL COMPUTER SEMICONDUCTOR MAKER JUMPED 1 TO 27 5/8 ORACLE SURGED 1 7/8 TO 50 5/8 SYBASE GAINED 1 TO 54 3/4 OTHER TECHNOLOGY STOCKS SLUMPED BECAUSE THEY RELEASED DISAPPOINTING NEWS TSENG LABS A PERSONAL COMPUTER CHIP MAKER IN NEWTOWN PA LOST 1 1/4 TO 12 3/8 AFTER IT SAID IT ANTICIPATES SALES AND EARNINGS FOR THE THIRD QUARTER WILL BE BELOW THE YEARAGO NET INCOME OF 26 MILLION OR 14 CENTS A SHARE ON SALES OF 158 MILLION KOMAG INC DROPPED 1 TO 16 1/4 ALEX BROWN & SONS LOWERED ITS INVESTMENT RATING OF THE DISKDRIVE MAKER TO NEUTRAL FROM BUY KOMAG RELEASED A BEARISH SECONDHALF OUTLOOK LATE TUESDAY IN WHICH IT SAID SECONDHALF EARNINGS ARE LIKELY TO FALL BELOW RESULTS FROM THE FIRST HALF OF 1993 KOMAG EARNED 72 CENTS A SHARE FOR THE FIRST SIX MONTHS OF 1993 OTHER BROAD STOCK MARKET INDEXES MOVED HIGHER AS THE BOND MARKET RECOVERED THE DOW JONES INDUSTRIAL AVERAGE FINISHED THE SESSION WITH A GAIN OF 1789 POINTS OR 049 TO 363365 SOME MARKET PLAYERS SAW SMALL STOCKS BOUNCE BACK IN GENERAL AFTER PROFITTAKERS TOOK PRICES LOWER BARGAIN HUNTERS STEPPED IN SOME HEALTHCARE AND MEDICALRELATED STOCKS MOVED HIGHER HEALTH MAINTENANCE ORGANIZATION OXFORD HEALTH GAINED 4 5/8 TO 65 3/8 US HEALTHCARE GAINED 1/8 TO 41 7/8 BIOTECHNOLOGY COMPANY AMGEN CLIMBED 1 1/2 TO 38 1/2 COMPAQ COMPUTER CORP SAID INDUSTRY SHIPMENTS OF PERSONAL COMPUTERS IN NORTH AMERICA ARE EXPECTED TO BE RELATIVELY FLAT IN THE SECOND HALF OF 1993 YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY INDICATED THAT COMPAQ WAS REFERRING TO ITS OWN SHIPMENTS 9309160117 930916 WORLD MARKETS MOST EUROPEAN MARKETS FINISH 1 TO 2 LOWER ON PROFITTAKING AND WEAKNESS ON WALL STREET A WALL STREET JOURNAL NEWS ROUNDUP PROFITTAKING AND EARLY LOSSES ON WALL STREET TRIGGERED A SELLOFF ACROSS EUROPEAN MARKETS YESTERDAY THAT LEFT MOST BOURSES 1 TO 2 LOWER LONDON STOCKS DROPPED 13 BUFFETED BY FUTURES SELLING AND BEARISH CORPORATE NEWS WHILE FRANKFURT PRICES LOST 11 THE TOKYO MARKET WAS CLOSED FOR A NATIONAL HOLIDAY ON THURSDAY THE NIKKEI 225STOCK INDEX SKIDDED 33333 POINTS TO CLOSE THE MORNING SESSION AT 2061446 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11262 DOWN 004 REFLECTING DECREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A RISE IN AMERICAN MARKETS AIR FREIGHT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11986 UP 293 OR 25 WITH FEDERAL EXPRESS OF THE US POSTING A 61 GAIN IN ITS LOCAL CURRENCY WATER UTILITIES STOCKS TRAILED AT 12164 DOWN 202 OR 16 WITH CALIFORNIA WATER SERVICE OF THE US SLIDING 51 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX DROPPED 386 POINTS TO 29894 FT 30 INDEX LOST 329 TO 23212 VOLUME TOTALED 7418 MILLION SHARES COMPARED WITH 5946 MILLION THE PREVIOUS DAY EARLY TECHNICAL SELLING IN THE FUTURES PIT SENT THE CASH MARKET DOWN WITH THE SEPTEMBER STOCKINDEX FUTURES CONTRACT EXPIRING TOMORROW AFTER A GREAT BULL RUN FUTURES TRADERS WERE POISED TO TAKE PROFITS AS THEY FOLLOWED THROUGH THE CASH MARKET WAS CLOSE BEHIND MEANWHILE CORPORATE EARNINGS REPORTS AND STATEMENTS SENT A BEARISH SIGNAL AND CONSUMERINFLATION DATA WERE STRONG ENOUGH TO SUGGEST THAT BRITAIN'S GOVERNMENT MAY NOT LOWER INTEREST RATES SOON EARLY DECLINES ON WALL STREET ALSO HURT THE MARKET IN FRANKFURT SHARES ENDED LOWER IN LISTLESS TRADING WEIGHED DOWN BY WEAKER GERMAN BONDS AND THE US DOLLAR THE DAX 30STOCK INDEX OF BLUECHIPS WHICH PICKED UP 8 POINTS TUESDAY FELL 2018 TO 186039 NEAR ITS LOW FOR THE SESSION AS TRADING DREW TO A CLOSE BEARS WERE ROUSED WHEN THE DOLLAR BEGAN SINKING TOWARD 16000 MARKS A WEAKENING DOLLAR IS GENERALLY SEEN AS HURTING COMPANIES THAT HAVE SIGNIFICANT DOLLARDENOMINATED SALES TRADERS WERE ALSO DISAPPOINTED ABOUT THE WEAKENING BUND GERMANY'S 10YEAR GOVERNMENT BOND IN PARIS STOCKS FELL 26 IN A LONGAWAITED CORRECTION TRIGGERED BY COMPUTERDRIVEN SELLING OF STOCKS THAT MAKE UP THE CAC 40 INDEX THE MARKET COULD REBOUND PARTIALLY TODAY ESPECIALLY IF THE BANK OF FRANCE DECIDES TO EASE INTEREST RATES AT ITS SECURITIES REPURCHASE AGREEMENT IN AMSTERDAM STOCKS DECLINED BROADLY AS THE DOLLAR'S SLUMP THE WEAK START ON WALL STREET AND SLACK TRADING VOLUME WEIGHED ON PRICES DEMAND FROM THE OPTIONS EXCHANGE WHICH HAD SUPPORTED SHARE PRICES EARLIER THIS WEEK FELL OFF IN MILAN STOCKS ENDED ONLY SLIGHTLY HIGHER AFTER A LATE SELLOFF AHEAD OF THE END OF THE SEPTEMBER TRADING CYCLE WIPED OUT EARLIER GAINS IN MADRID PRICES SANK 19 DAMPED BY DECLINES ON OTHER EUROPEAN BOURSES IN THE ABSENCE OF POSITIVE NEWS IN ZURICH EQUITIES WEAKENED IN MODERATE TRADING PULLED LOWER BY A DROP IN THE DOLLAR STOCKHOLM SHARES FELL ACROSS THE BOARD ON THE BACK OF SIGNIFICANTLY HIGHER DOMESTIC INTEREST RATES AND A WEAKER KRONA PRICES WERE LOWER FROM THE OUTSET BUT THE SLIDE ACCELERATED IN THE LAST HOUR OF TRADING BECAUSE OF THE LOWER OPENING ON WALL STREET MOST ASIAN AND PACIFIC MARKETS FINISHED WITH LOSSES IN SYDNEY SHARES CLOSED MOSTLY LOWER BUT GOLD STOCKS GAINED SOME STRENGTH ON A MODEST RISE IN THE METAL'S PRICE OVERSEAS INVESTORS STAYED OUT OF THE MARKET BECAUSE OF UNCERTAINTY ABOUT THE AUSTRALIAN CURRENCY WHILE LOCAL INVESTORS AWAITED FRESH NEWS TO GIVE THE MARKET DIRECTION IN SINGAPORE PRICES SLIPPED IN LATE DEALINGS PULLING THE MARKET TOWARD TECHNICAL SUPPORT LEVELS FOR ITS MAIN INDEX THE MARKET REMAINED IN CONSOLIDATION WITH LITTLE INTEREST FROM PLAYERS MEANWHILE ACTIVITY WAS STILL BRISK IN MALAYSIAN OVERTHECOUNTER SPECULATIVE STOCKS TRADED IN SINGAPORE PART OF THE DRIVE WAS A BUILDUP TOWARDS THE MALAYSIAN BUDGET DUE NEXT MONTH IN HONG KONG STOCKS GAINED ONLY SLIGHTLY IN A SLEEPY SESSION AS MOST OF THE DAY'S ADVANCES WERE ERASED IN THE AFTERNOON SHARES WERE HIGHER IN EARLY TRADING BECAUSE OF BUYING OF FUTURES CONTRACTS BY A MAJOR PLAYER IN TAIPEI SHARE PRICES ENDED MODERATELY LOWER ON SELLING OF BLUECHIP STOCKS BY INSTITUTIONAL INVESTORS WHICH IN TURN TRIGGERED PANIC SELLING BY SOME INDIVIDUAL INVESTORS THE SELLING REFLECTED THE WANING CONFIDENCE OF MAJOR INSTITUTIONAL INVESTORS DESPITE MOVES BY THE TAIWANESE GOVERNMENT TO INCREASE ACCESS TO CAPITAL IN SEOUL EQUITIES RETREATED AMID CAUTION CONCERNING THE GAINS IN THE PAST DAYS THE DAY'S GAINERS WERE FINANCIALLY HEALTHY ISSUES WITH LOW PRICE/EARNINGS RATIOS THEY ARE BELIEVED TO BE LITTLE TROUBLED BY LIQUIDITY PROBLEMS ARISING FROM THE SOUTH KOREAN GOVERNMENT'S AUG 12 IMPLEMENTATION OF A SOCALLED REALNAME FINANCIAL TRANSACTION SYSTEM IN WELLINGTON SHARES WEAKENED IN BUSY TRADING WITH THE MAIN MARKET INDEX FALLING FOR THE FIFTH STRAIGHT SESSION MEANWHILE IN MEXICO CITY STOCKS FELL 11 IN LIGHT TRADING THEIR THIRD STRAIGHT DECLINE INVESTORS CONTINUED TO TAKE PROFITS FOLLOWING THE LEAD OF OVERSEAS INVESTORS IN NEW YORK SOME ARE WORRIED ABOUT PROSPECTS FOR US PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT ENGLISH CHINA CLAYS DROPPED 26 PENCE OR 6 TO 408 THE BUILDINGMATERIALS GROUP'S FIRSTHALF PROFIT FELL 12 TO 403 MILLION FROM 408 MILLION THE RESULT WAS AT THE BOTTOM OF MARKET FORECASTS RANK ORGANISATION FELL 21 PENCE OR 26 TO 773 PENCE THE LEISURE GROUP AND PARTNER MCA INC MET WITH OFFICIALS IN ORLANDO FLA TO PRESENT PLANS TO EXTEND THEIR UNIVERSAL STUDIOS FLORIDA THEMEPARK JOINT VENTURE IN FRANKFURT DAIMLERBENZ LOST 1350 MARKS TO 70880 MARKS 43988 AHEAD OF TOMORROW'S FIRSTHALF EARNINGS REPORT THE AUTO MAKER COULD REPORT BOTH A NET LOSS AND A PROFIT BECAUSE FOR THE FIRST TIME IT WILL PUBLISH TWO VERSIONS OF ITS SIXMONTH NET RESULTS ONE FOR POTENTIAL US INVESTORS THAT CORRESPONDS TO STRICT US DISCLOSURE REGULATIONS AND THE OTHER UNDER GERMANY'S LESSTRANSPARENT RULES 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 9309160116 930916 WHO'S NEWS BRISTOLMYERS PICKS HEIMBOLD FOR CEO POST BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISTOLMYERS SQUIBB CO SAID IT NAMED ITS PRESIDENT CHARLES A HEIMBOLD JR TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 1 1994 THE PHARMACEUTICAL AND CONSUMER PRODUCTS COMPANY SAID ITS LONGTIME CHAIRMAN AND CHIEF EXECUTIVE RICHARD L GELB WILL REMAIN CHAIRMAN WITH AN ACTIVE MANAGEMENT ROLE THE 60YEAROLD MR HEIMBOLD WHO WAS NAMED PRESIDENT AND A DIRECTOR IN 1992 HAS BEEN RESPONSIBLE FOR THE COMPANY'S HEALTHCARE BUSINESS SINCE 1984 AND ITS CONSUMER PRODUCTS GROUP SINCE 1989 MANY PEOPLE WITHIN AND OUTSIDE THE COMPANY THOUGHT MR HEIMBOLD WOULD BE NAMED CHIEF EXECUTIVE BUT MR GELB WHO IS 69 YEARS OLD AND HAS BEEN CHIEF EXECUTIVE OF BRISTOLMYERS SINCE 1972 HADN'T GIVEN ANY PUBLIC INDICATION HE WAS READY TO RELINQUISH THE TOP POST IN ANNOUNCING THE MANAGEMENT SHIFT MR GELB SAID MR HEIMBOLD'S 30YEAR CAREER AT BRISTOLMYERS HAS BEEN VARIED AND DISTINGUISHED INCLUDING A WIDE RANGE OF SENIOR CORPORATE AND BUSINESS GROUP ASSIGNMENTS MR GELB ADDED WE ARE FORTUNATE TO HAVE SOMEONE WITH HIS BACKGROUND SKILL AND ABILITY TO TAKE OVER THE LEADERSHIP OF OUR COMPANY AT THIS CHALLENGING POINT IN ITS HISTORY IN AN INTERVIEW MR GELB SAID THE TWO MEN HAVE WORKED CLOSELY SINCE 1970 AND THAT MR HEIMBOLD HAS REPORTED DIRECTLY TO MR GELB SINCE 1972 MR GELB PASSES THE CORPORATE BATON AT AN EXTRAORDINARILY STRESSFUL TIME FOR THE PHARMACEUTICAL INDUSTRY PRESSURE FROM THE GOVERNMENT AND FROM LARGE MANAGEDCARE HEALTH INSURERS HAS FORCED DRUG MAKERS TO SHARPLY CURTAIL INCREASING DRUG PRICES AS A RESULT REVENUE AND PROFIT INDUSTRYWIDE AND AT BRISTOLMYERS HAVE GROWN SLUGGISHLY OF LATE FOR THE SECOND QUARTER THE COMPANY'S PROFIT ROSE 67 TO 5206 MILLION OR 101 A SHARE FROM 488 MILLION OR 94 CENTS A SHARE A YEAR EARLIER MR HEIMBOLD SAID HE PLANS TO CARRY OUT A BLUEPRINT FOR ACTION DEVELOPED BY THE COMPANY'S TOP MANAGEMENT IN PARTICULAR HE SAID THE COMPANY PLANS TO SEEK OUT BUSINESS ALLIANCES THAT WOULD INCREASE OUR RELATIONSHIP WITH MANAGED HEALTHCARE PROGRAMS HE ALSO SAID HE EXPECTS THE COMPANY TO CONTINUE REFOCUSING ITS PHARMACEUTICAL RESEARCH AND DEVELOPMENT OPERATIONS SO THERE CAN BE NO ARGUMENT AS TO THE DISTINCTIVE THERAPEUTIC VALUE OF NEW MEDICINES PRODUCED BY THE COMPANY DRUG INDUSTRY OFFICIALS GENERALLY AGREE THAT IN THE NEW COMPETITIVE HEALTHCARE MARKETPLACE DRUG MAKERS WILL BE ABLE TO GET PREMIUM PRICES AND BIG SALES ONLY FOR DRUGS THAT PROVIDE A MEASURABLE ADVANCE OVER EXISTING TREATMENTS LEAVE IN 1995 MR GELB SAID HE EXPECTS TO STEP DOWN AS CHAIRMAN WHEN HIS BOARD TERM EXPIRES IN MAY 1995 DRUG INDUSTRY WATCHERS HAVE LONG VIEWED MR GELB AS A STRONG FISCALLY CONSERVATIVE LEADER WHOSE COMPANY CONSISTENTLY HAS PRODUCED EARNINGS AT OR ABOVE THE INDUSTRY AVERAGE IN RECENT YEARS BRISTOLMYERS HAS BECOME ONE OF THE WORLD'S BIGGEST DRUG MAKERS IN TOTAL SALES MR GELB SAID HE HAD PLANNED TO LEAVE THE COMPANY'S TOP POST EARLIER BUT STAYED ON TO STEER THE COMPANY THROUGH ITS ACQUISITION OF SQUIBB CORP IN 1989 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 9309160115 930916 WHO'S NEWS FERROFLUIDICS CORP'S MOSKOWITZ RETIRES AVERY SUCCEEDS HIM NASHUA NH FERROFLUIDICS CORP UNDER INVESTIGATION BY FEDERAL REGULATORS FOR ALLEGEDLY VIOLATING SECURITIES LAWS SAID RONALD MOSKOWITZ ITS COFOUNDER AND CURRENT CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS RETIRED FROM ALL POSTS THE MAKER OF MAGNETIC FLUIDS SAID PAUL F AVERY JR 64 YEARS OLD HAS SUCCEEDED DR MOSKOWITZ 54 MR AVERY WAS AN OUTSIDE DIRECTOR DR MOSKOWITZ'S RETIREMENT CAME JUST FIVE DAYS BEFORE A SPECIAL MEETING THE COMPANY'S BOARD HAD CALLED TO REMOVE HIM THE COMPANY SAID HE WILL BECOME A SENIOR ADVISER TO IT THROUGH JUNE 30 1997 THE COMPANY ADDED THAT IN AN UNRELATED MATTER JAN R KIRK 51 CHIEF FINANCIAL OFFICER AND PRESIDENT OF THE INTERNATIONAL GROUP HAS RELINQUISHED HIS POSITION FOR PERSONAL REASONS DR MOSKOWITZ IN A STATEMENT ISSUED BY HIS ATTORNEY SAIDI BELIEVE IT IS IN THE COMPANY'S BEST INTEREST THAT IT NOT BE DISTRACTED BY THE RECENT CONTROVERSY THAT HAS DEVELOPED THEREFORE I HAVE DECIDED THAT THIS IS AN APPROPRIATE TIME FOR ME TO STEP ASIDE FERROFLUIDICS AND UNNAMED INVESTORS ARE BEING INVESTIGATED FOR ALLEGEDLY MAKING PAYMENTS TO GET FAVORABLE COVERAGE BY ANALYSTS AND FOR OVERSTATING EARNINGS FOR THE FIRST THREE QUARTERS OF FISCAL 1993 ENDED JUNE 30 THE COMPANY AND SOME OF ITS OFFICERS ALSO HAVE BEEN NAMED AS DEFENDANTS IN THREE FEDERAL SUITS FILED BY SHAREHOLDERS CONCERNING THE MATTER THE COMPANY HAS SAID IT PLANS TO VIGOROUSLY DEFEND AGAINST THE LAWSUITS FERROFLUIDICS HAS SAID IT PLANS TO RESTATE ABOUT 2 MILLION IN OPERATING PROFIT AND 11 MILLION IN REVENUE FOR ALL THREE QUARTERS 9309160114 930916 MEDISAVE ACCOUNTS THE ETHICAL HEALTH REFORM BY MERRILL MATTHEWS JR THOUGH MEDICAL ETHICISTS DISAGREE ON A NUMBER OF ISSUES ON ONE POINT ALMOST ALL CONCUR PATIENTS WHO ARE CONSCIOUS AND COMPETENT SHOULD HAVE CONTROL OVER THEIR BODIES IN MEDICAL DECISIONS THAT MEANS THAT NOTHING SHOULD BE DONE TO THE PATIENT WITHOUT INFORMED CONSENT HOWEVER THE CONCERN THAT MEDICAL ETHICISTS SHOW FOR PATIENT AUTONOMY HAS BEEN ABSENT FROM THE RECENT POLITICAL DEBATE OVER HEALTHCARE REFORM INDEED A NUMBER OF PROPOSALS INCLUDING PRESIDENT CLINTON'S MOVE IN PRECISELY THE OPPOSITE DIRECTION ONLY ONE HEALTHCARE REFORM IDEA BEFORE CONGRESS INCORPORATES SOUND ECONOMICS AND ACTUALLY ENCOURAGES PATIENT AUTONOMY MEDICAL SAVINGS ACCOUNTS THE PRIMARY JUSTIFICATION GIVEN FOR MOVING AWAY FROM PATIENT AUTONOMY IS THAT PATIENTS DO NOT HAVE THE KNOWLEDGE OR EMOTIONAL STABILITY TO MAKE INTELLIGENT DECISIONS ABOUT MEDICAL CARE OR THE ABILITY TO RESOLVE CONFLICTING MEDICAL OPINIONS BUT THIS JUSTIFICATION RUNS COUNTER TO WHAT MOST ETHICISTS BELIEVE ABOUT INFORMED CONSENT MEDICAL SCHOOLS FOR EXAMPLE ESTABLISH COMMITTEES KNOWN AS INSTITUTIONAL REVIEW BOARDS TO OVERSEE RESEARCH ON HUMANS ONE OF THE BOARD'S PRIMARY CONCERNS IS THAT RESEARCHERS DEVELOP AN INFORMED CONSENT DOCUMENT THAT EXPLAINS IN TERMS A LAYMAN CAN UNDERSTAND THE REASON FOR THE RESEARCH WHAT THE RESEARCHER EXPECTS THE PATIENT TO EXPERIENCE AND GAIN AND WHAT THE RESEARCHER HOPES TO LEARN OR ACCOMPLISH BY THE EXPERIMENT THE BOARD ASSUMES THAT IT IS POSSIBLE TO MAKE THIS INFORMATION CLEAR AND UNDERSTANDABLE TO A PATIENT AND THAT MOST PATIENTS EVEN FOR FAIRLY ESOTERIC PROCEDURES CAN MAKE A REASONABLY INFORMED DECISION ABOUT WHETHER TO CONSENT WHEN IT COMES TO STANDARD HEALTH CARE HOWEVER MANY PEOPLE IN THE HEALTH POLICY COMMUNITY DO NOT BELIEVE THAT PATIENTS EVEN AFTER CONSULTATION WITH THEIR PHYSICIANS CAN MAKE INFORMED DECISIONS THE PRESIDENT'S PROPOSAL FOR EXAMPLE IS BASED IN PART ON MOVING MOST AMERICANS INTO HEALTH MAINTENANCE ORGANIZATIONS WHERE MANAGED CARE INCREASINGLY HAS COME TO MEAN INTERFERENCE IN THE DOCTORPATIENT RELATIONSHIP A PATIENT CAN RECEIVE DRUGS OR TREATMENTS AND PERHAPS NEVER LEARN THAT THERE WERE BETTER MORE EXPENSIVE ALTERNATIVES THAT WERE NOT USED BECAUSE AN INSURER DID NOT WANT TO PAY FOR THEM IN EFFECT MEDICAL ETHICS HAS SUCCUMBED TO MEDICAL ECONOMICS AS PATERNALISM IS GIVEN PRECEDENCE OVER AUTONOMY LES ASPIN LEARNED THIS FACT THE HARD WAY WHEN HE BECAME SECRETARY OF DEFENSE HE NEEDED ADDITIONAL VACCINATIONS BECAUSE OF HIS EXPANDED INTERNATIONAL TRAVEL ITINERARY HIS PHYSICIANS GAVE HIM A VACCINE SLIGHTLY MORE RISKY THAN ONE THAT WOULD HAVE COST 155 MORE AND MR ASPIN ENDED UP IN INTENSIVE CARE AS A RESULT TO MY KNOWLEDGE HE WAS NEVER ASKED IF HE WOULD BE WILLING TO PAY 155 OUT OF POCKET TO AVOID THE RISK OR CONSIDER THE CASE OF SEN BOB DOLE'S PROSTATE CANCER MOST MANAGEDCARE PLANS SEE LITTLE MEDICAL BENEFIT IN A CANCER BLOOD TEST KNOWN AS PROSTATESPECIFIC ANTIGEN AND THEREFORE DO NOT ROUTINELY PROVIDE IT FORTUNATELY SEN DOLE HAD THE OPPORTUNITY TO MAKE HIS OWN DECISION AND OPTED FOR THE TEST IN 1991 IT LED TO A BIOPSY AND THE SURGERY HE CONTENDS SAVED HIS LIFE WHILE A CANADIANSTYLE SYSTEM OF NATIONAL HEALTH INSURANCE GIVES THE PATIENT A FREE CHOICE OF PHYSICIANS THE ULTIMATE POWER FOR DECISION MAKING IS IN THE HANDS OF A HEALTHCARE BUREAUCRACY THAT DETERMINES HOW MUCH MONEY WILL BE ALLOCATED TO EACH HEALTHCARE FACILITY PEOPLE WHO NEED HEART BYPASS SURGERY OR A BRAIN SCAN MAY HAVE TO WAIT MONTHS BEFORE IT IS THEIR TURN PATIENTS ARE ALLOWED TO MAKE VERY FEW CHOICES ABOUT WHAT TYPE OF HEALTH CARE THEY RECEIVE BECAUSE THE GOVERNMENT RATHER THAT THE PATIENTS CONTROLS THE MONEY MEDICAL SAVINGS ACCOUNTS OFTEN REFERRED TO AS MEDISAVE ACCOUNTS OR MEDICAL IRAS RESPECT AUTONOMY AND PUT POWER INTO THE HANDS OF THE PATIENT NO OTHER HEALTHCARE REFORM PROPOSAL CAN MAKE THAT CLAIM THAT MAKES MEDICAL SAVINGS ACCOUNTS THE MOST ETHICAL PROPOSAL FOR HEALTHCARE REFORM NOW AVAILABLE THESE ACCOUNTS WOULD HELP TO REVERSE THE CONVOLUTED INCENTIVES OPERATING IN THE AMERICAN HEALTHCARE SYSTEM UNDER OUR CURRENT THIRDPARTYPAYER SYSTEM THE VAST MAJORITY OF PATIENTS PAY ONLY A SMALL FRACTION OF THEIR MEDICAL BILLS THE BULK OF THE EXPENSE IS PAID BY INSURERS EMPLOYERS AND THE GOVERNMENT THIS HAS LED TO SYSTEMATIC OVERUSE BY CONSUMERS WHO SEE LITTLE REASON TO LIMIT THE AMOUNT THEY ARE SPENDING OF SOMEONE ELSE'S MONEY AND BY HEALTHCARE PROVIDERS WHO HAVE LITTLE ECONOMIC REASON TO WEIGH THE COST VS THE BENEFIT OF A MEDICAL PROCEDURE TO STEM THIS OVERUSE THIRDPARTY PAYERS ARE MOVING TO RESTRICT OR DENY THE CHOICES OF THEIR CLIENTS BY CONTRAST MEDICAL SAVINGS ACCOUNTS MINIMIZE THE ROLE OF THIRDPARTY PAYERS BY GIVING PEOPLE THE OPPORTUNITY TO SET ASIDE MONEY EACH YEAR IN A SPECIAL TAXFREE ACCOUNT TO PAY FOR SMALL MEDICAL BILLS WHILE USING HIGHDEDUCTIBLE CATASTROPHIC INSURANCE TO COVER MAJOR EXPENSES FOR EXAMPLE INSTEAD OF THE EMPLOYER PROVIDING 4500 FOR A FAMILY POLICY THE EMPLOYEE COULD TAKE 1700 OF THAT MONEY AND BUY A CATASTROPHIC POLICY WITH A DEDUCTIBLE OF 2500 TO 3000 HE THEN WOULD DEPOSIT THE PREMIUM SAVINGS OF 2800 IN THE MEDISAVE ACCOUNT MEDICAL SAVINGS ACCOUNT FUNDS COULD ACCUMULATE AND BE USED FOR HEALTH EXPENDITURES BEFORE OR AFTER RETIREMENT OR THEY COULD BECOME PART OF THE ESTATE AT DEATH DEPOSITS COULD BE MADE BY EMPLOYEES OR BY THEIR EMPLOYERS BUT THE MEDICAL SAVINGS ACCOUNT WOULD BE PERSONAL AND PORTABLE AND WOULD BELONG TO THE EMPLOYEE MEDISAVE ACCOUNTS WOULD PERMIT PEOPLE TO PAY FOR MOST HEALTH CARE EXPENDITURES WITH THEIR OWN MONEY ENCOURAGING THEM TO BECOME MORE PRUDENT SHOPPERS THEY WOULD HAVE AN INCENTIVE TO AVOID WASTE BUT WOULD NOT BE DENIED NEEDED CARE BECAUSE OF A LACK OF FUNDS FOR MOST MEDICAL DECISIONS NO ONE WOULD COME BETWEEN THE PHYSICIAN AND THE PATIENT IT IS LIKELY THAT MEDICAL SAVINGS ACCOUNTS WOULD IMPOSE A GREATER BURDEN OF RESPONSIBILITY ON THE PHYSICIAN TO INFORM THE PATIENT ABOUT ALTERNATIVE THERAPIES AND THEIR COSTS SIMILARLY MEDISAVE ACCOUNTS WOULD IMPOSE A GREATER BURDEN OF RESPONSIBILITY ON THE PATIENT TO BE A MORE INFORMED AND RATIONAL CONSUMER BUT THEN THAT'S THE ETHICAL THING TO DO SHIRT MR MATTHEWS IS THE HEALTH POLICY DIRECTOR OF THE NATIONAL CENTER FOR POLICY ANALYSIS IN DALLAS HE IS THE ETHICIST FOR RICHARDSON MEDICAL CENTER AND ON THE INSTITUTIONAL REVIEW BOARD FOR HUMAN EXPERIMENTATION AT SOUTHWESTERN MEDICAL SCHOOL 9309160113 930916 PROMPTER PAYMENTS OF CREDITCARD BILLS AID SECURITIZED POOLS NEW YORK AN INCREASED NUMBER OF AMERICANS PAYING THEIR BILLS ON TIME PROMPTED LOSSES ON SECURITIZED POOLS OF CREDITCARD ACCOUNTS TO FALL SHARPLY IN JUNE FROM A YEAR AGO MOODY'S INVESTOR SERVICE INC SAID MOODY'S SAID THE CHARGEOFF RATE OR AMOUNTS WRITTEN OFF AS UNCOLLECTIBLE FELL 525 IN JUNE 1993 FROM A RECORD HIGH OF 636 IN JUNE 1992 ACCORDING TO THE RATINGS AGENCY'S MOST RECENT CREDITCARD PERFORMANCE INDEXES THE INDEXES TRACK ABOUT 60 BILLION OF SECURITIZED POOLS OF CREDITCARD RECEIVABLES FOR THE SECOND QUARTER OF 1993 THE CHARGEOFF RATE AVERAGED 521 DOWN ALMOST 15 FROM THE 1992 SECONDQUARTER LEVEL OF 607 THE JUNE DECLINE IN THE CHARGEOFF RATE REPRESENTS A CONTINUATION OF A DECLINING TREND THAT STARTED IN JULY 1992 MOODY'S SAID THERE WERE OTHER IMPROVEMENTS ACCORDING TO THE INDEXES THE DELINQUENCY RATE OR PAYMENTS THAT ARE MORE THAN 30 DAYS LATE HAS BEEN STEADILY DECLINING SINCE EARLY 1991 IT AVERAGED 529 IN THE SECOND QUARTER OF 1993 COMPARED WITH 561 IN THE SECOND QUARTER OF 1992 AND FOR THE 13TH CONSECUTIVE MONTH THE PRINCIPAL PAYMENT RATE IMPROVED OVER THE PREVIOUS YEAR'S RATE TO 1269 IN JUNE 1993 FROM 1143 IN JUNE 1992 WHILE MOODY'S ATTRIBUTED THE IMPROVING OVERALL CREDIT PERFORMANCE TO A SLOW BUT STEADY ECONOMIC RECOVERY IN THE US EDWARD BANKOLE AN ANALYST WHO MAINTAINS THE INDEXES PREDICTED THAT CHARGEOFF RATES WON'T FALL TO PRE1990 LEVELS BECAUSE INCREASED CREDITCARD COMPETITION AND CONSUMERS' WILLINGNESS TO FILE FOR BANKRUPTCY HAVE SOMEWHAT WEAKENED THE CREDIT QUALITY OF THE AVERAGE CARD HOLDER 9309160112 930916 LEARNING A LANGUAGE THIS WAY IS AS EASY AS ONE THREE TWO BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS NO HABLAMOS INGLES AND THAT'S THE PROBLEM THE INSTITUTO BILINGUE INTERNACIONAL A LANGUAGE SCHOOL OPERATING IN TWO DALLAS SUBURBS HAS BEEN OFFERING CLASSES IN ENGLISH TO SPANISHSPEAKING STUDENTS FOR FOUR YEARS CHARGING AS MUCH AS 998 FOR THE COURSE BUT DAN MORALES TEXAS ATTORNEY GENERAL RECENTLY FILED SUIT IN A DALLAS STATE COURT ALLEGING THAT THE LANGUAGE SCHOOL IS GUILTY OF AMONG OTHER THINGS BAD GRAMMAR AND USAGE THE LAWSUIT SEEKS AN INJUNCTION AGAINST DECEPTIVE PRACTICES ADVERTISING AND CLAIMS CIVIL PENALTIES OF AS MUCH AS 10000 AND LEGAL COSTS THE ATTORNEY GENERAL'S OFFICE HAS RECEIVED MORE THAN 30 CONSUMERFRAUD COMPLAINTS FROM THE SCHOOL'S STUDENTS MR MORALES CONTENDS IN THE LAWSUIT THAT THE LANGUAGE INSTRUCTORS AREN'T QUALIFIED TO TEACH ENGLISH AND THAT THE SCHOOL'S STANDARD COURSE MATERIALS ARE SUBSTANDARD AMATEURISH IN EXECUTION AND FILLED WITH NONSENSICAL PHRASES AND TRANSLATION ERRORS SOME OF THE ENGLISH PHRASES IN THE MATERIALS INCLUDE AVOID HAVING A DAY OF PLEASURE TURNS INTO NIGHTMARE FOR YOU AND YOUR FAMILY YOU WERE FEW WHOSE ARE THOSE SHEEPS BOBBY FEELS SOME ONE ILL AND IS GOING TO BED AND I TELL YOU GOOD WORDS APPARENTLY THE AUTHORS OF THE MANUALS ALSO LEARNED PRONUNCIATION FROM SYLVESTER STALLONE ADVISING STUDENTS TO PRONOUNCE THIS AND THAT AS DIS AND DAT THE LAWSUIT ACCUSES SCHOOL OWNER RAMON PACHECO OF VIOLATING LAWS BY WRITING HIS CONTRACTS WITH SPANISH SPEAKERS IN ENGLISH AND THREATENING TO NOTIFY THE IMMIGRATION AND NATURALIZATION SERVICE ABOUT ILLEGAL ALIENS WHO DON'T PAY THEIR BILLS AS FOR MR PACHECO WHO DIDN'T RETURN CALLS SEEKING COMMENT IT ISN'T CLEAR HOW HE WILL PLEAD THE ATTORNEY GENERAL'S SPOKESMAN SAID THE CUBANBORN OWNER SEEMS UNABLE OR UNWILLING TO SPEAK ENGLISH WHEN WE WERE INTERVIEWING HIM HE USED AN INTERPRETER THE SPOKESMAN SAID BUT HIS DEFENSE COULD BE BASED ON THE PREMISE THAT NOBODY'S PERFECT NOT EVEN THE TEXAS ATTORNEY GENERAL'S OFFICE WHICH MISSPELLED THE SCHOOL'S SPANISH NAME IN A NEWS RELEASE A SPOKESMAN FOR THE ATTORNEY GENERAL SAID THE BLAME LIKELY WOULD BE PLACED ON THE PRESS DEPARTMENT WE'LL PLEAD GUILTY TO BEING DUMB HE SAID 9309160111 930916 ECONOMY BUSINESS STOCKPILES FELL 05 IN JULY RETAIL LED DECLINE BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUSINESS INVENTORIES FELL 05 IN JULY THE FIRST DECLINE IN 10 MONTHS AND THE LARGEST SINCE MARCH 1991 THE COMMERCE DEPARTMENT SAID THE INVENTORY DECLINE TO 86033 BILLION CENTERED IN THE RETAIL SECTOR ESPECIALLY THE AUTO INDUSTRY RETAIL STOCKPILES DROPPED 13 WHILE AUTOMOBILE INVENTORIES FELL 49 WHOLESALE INVENTORIES DECREASED 02 AND MANUFACTURING INVENTORIES WERE UNCHANGED FROM JUNE LOWER INVENTORIES CAN TRANSLATE INTO INCREASED PRODUCTION AND EMPLOYMENT THE MANUFACTURING SECTOR HAS BEEN STEADILY CUTTING ITS PAYROLLS SINCE THE START OF THE YEAR SO THE JULY INVENTORY REPORT IS ENCOURAGING I THINK THERE ARE EXCEPTIONALLY HOTSELLING CARS SAID SUNG WON SOHN VICE PRESIDENT AND CHIEF ECONOMIST OF MINNEAPOLIS'S NORWEST CORP THE DROP IN INVENTORIES MEANS IN THE FUTURE THERE'LL BE HIGHER PRODUCTION OF CARS AND CONSEQUENTLY MORE INVENTORY BUILDING DR SOHN PREDICTED THAT BUSINESSES WILL BUILD UP INVENTORIES FOR THE REST OF THE QUARTER WHICH HE SAID WILL BE THE MOST IMPORTANT SOURCE OF STRENGTH FOR THE ECONOMY TOTAL BUSINESS SALES IN JULY FELL 11 TO 58363 BILLION THE JULY INVENTORYTOSALES RATIO OR HOW MANY MONTHS IT WOULD TAKE TO LIQUIDATE INVENTORY AT CURRENT SALES RATES WAS 147 UP FROM 146 IN JUNE ALL FIGURES HAVE BEEN ADJUSTED FOR SEASONAL CHANGES BUT NOT FOR PRICE CHANGES HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN JULY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9309160110 930916 LETTERS TO THE EDITOR BUDGET ACT PROHIBITS DOCTORS' SELFREFERRALS AS A HEALTHCARE ATTORNEY FAMILIAR WITH HEALTHCARE FRAUD AND ABUSE ISSUES I'M RESPONDING TO YOUR AUG 16 ARTICLE INVESTIGATORS INTENSIFY CRACKDOWN ON FRAUD IN THE HEALTH INDUSTRY YOU FAILED TO INCLUDE A PIECE OF INFORMATION REGARDING PHYSICIAN SELFREFERRALS THAT WAS PART OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1993 SIGNED INTO LAW AUG 10 THE ACT EXTENDED THE PROHIBITION ON PHYSICIAN SELFREFERRALS TO CLINICAL LABORATORIES TO INCLUDE A NUMBER OF OTHER DESIGNATED HEALTH SERVICES SUCH SERVICES INCLUDE PHYSICALTHERAPY SERVICES OCCUPATIONALTHERAPY SERVICES RADIOLOGY OR OTHER DIAGNOSTIC SERVICES RADIATIONTHERAPY SERVICES DURABLE MEDICAL EQUIPMENT HOMEHEALTH SERVICES AND INPATIENT AND OUTPATIENT HOSPITAL SERVICES ALTHOUGH THE ACT DOES NOT BECOME EFFECTIVE UNTIL JAN 1 1995 PHYSICIANS WHO CURRENTLY HAVE SUSPECT FINANCIAL RELATIONSHIPS NEED TO BEGIN PLANNING NOW TO DIVEST THEMSELVES OF THEIR HOLDINGS OR WITHDRAW FROM CONTRACTUAL RELATIONSHIPS TO COMPLY WITH THE ACT 9309160109 930916 TECHNOLOGY & HEALTH APPLE COMPUTER INC EXPANDS IN CHINA OPENS BEIJING OFFICE CUPERTINO CALIF APPLE COMPUTER INC SAID IT EXPANDED ITS OPERATIONS IN CHINA BY OPENING A BEIJING OFFICE SIGNING AN AGREEMENT WITH A CHINESE DISTRIBUTOR AND SETTING UP A TRAINING CENTER AT BEIJING'S TSINGHUA UNIVERSITY SEPARATELY APPLE SAID CHAIRMAN JOHN SCULLY HAD SHARPLY UNDERSTATED UNIT SALES OF THE COMPANY'S NEW NEWTON MESSAGEPAD IN A SPEECH TUESDAY APPLE'S BEIJING OFFICE WHICH APPLE HAD ANNOUNCED PLANS TO OPEN EARLIER THIS YEAR WILL SUPPORT COMPUTER RESELLERS DEVELOPERS AND CUSTOMERS AND HELP ESTABLISH GOVERNMENT AND BUSINESS RELATIONSHIPS IN CHINA THE COMPANY SAID THE NEW DISTRIBUTOR LEGEND COMPUTER GROUP WILL MARKET AND SERVICE APPLE'S COMPUTERS AND PERIPHERALS THROUGH ITS NATIONWIDE NETWORK OF SALES OFFICES DEALERS AND SERVICE CENTERS APPLE SAID APPLE SAID THE COMPUTER CENTER IT WILL SPONSOR AT TSINGHUA UNIVERSITY WILL PROVIDE TRAINING ON APPLE'S MACINTOSH COMPUTERS FOR SOFTWARE DEVELOPERS RESELLERS CUSTOMERS PROFESSORS AND STUDENTS APPLE HASN'T HAD A REPRESENTATIVE OFFICE OR A DISTRIBUTOR IN CHINA AND MOST APPLE MACHINES SOLD IN CHINA HAVE BEEN SHIPPED THROUGH HONG KONGBASED DISTRIBUTORS THE STEPPEDUP PRESENCE IN CHINA SAID MICHAEL SPINDLER APPLE'S CHIEF EXECUTIVE OFFICER MARKS A SIGNIFICANT MILESTONE FOR APPLE IN OUR EFFORTS TO BECOME A LEADING PROVIDER OF PERSONAL COMPUTERS IN CHINA MEANWHILE AN APPLE SPOKESWOMAN SAID MR SCULLY MISSPOKE WHEN HE TOLD ATTENDEES AT A COMPUTER CONFERENCE THAT APPLE HAD SOLD CLOSE TO 10000 OF ITS MESSAGEPAD HANDHELD COMPUTER WHILE NOT DIVULGING NUMBERS THE SPOKESWOMAN SAID APPLE'S UNIT SALES OF THE MESSAGEPAD WERE A VERY SIGNIFICANT INCREASE FROM THE 10000UNIT FIGURE APPLE IS COUNTING ON ITS HEAVILY TOUTED NEWTON TECHNOLOGY TO BE A SUBSTANTIAL CONTRIBUTOR TO REVENUE IN THE FUTURE AND SALES OF ITS FIRST NEWTON MACHINE ARE BEING CLOSELY WATCHED AS A MEASURE OF HOW WELL THE TECHNOLOGY WILL DO IN THE MARKET 9309160108 930916 TECHNOLOGY & HEALTH TWO FOREIGN FIRMS PLAN INVESTMENTS IN BIOTECH CONCERNS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS IN AN ENDORSEMENT OF A NEW APPROACH TO DRUG DESIGN TWO FOREIGN PHARMACEUTICAL MAKERS HAVE INVESTED ALMOST 60 MILLION IN SEPARATE DEALS WITH SMALL BIOTECHNOLOGY COMPANIES HERE IN THE LATEST AGREEMENT TO BE ANNOUNCED TODAY SANDOZ PHARMA LTD WILL MAKE PAYMENTS TOTALING 29 MILLION TO PROCEPT INC A CLOSELY HELD CAMBRIDGE MASS COMPANY TO FUND RESEARCH INTO DRUGS TO TREAT IMMUNESYSTEM DISORDERS AND ORGAN TRANSPLANT REJECTION SEPARATELY THE FRENCH DRUG MAKER ROUSSEL UCLAF AGREED TO PROVIDE AS MUCH AS 30 MILLION TO VERTEX PHARMACEUTICALS INC ALSO IN CAMBRIDGE TO WORK ON ANTIINFLAMMATION DRUGS TO TREAT DISEASES SUCH AS RHEUMATOID ARTHRITIS PSORIASIS AND INFLAMMATORY BOWEL DISEASE BOTH COMPANIES ARE CONCENTRATING THEIR EFFORTS ON SMALLMOLECULE DRUGS AN AREA THAT PROMISES TO YIELD MORE SHARPLY TARGETED DRUGS THAT HAVE FEWER SIDE EFFECTS AND ARE CHEAPER TO PRODUCE THIS IS IN CONTRAST TO BIOTECHNOLOGY FIRMS USING RECOMBINANT TECHNOLOGY GENE SPLICING TO CREATE PROTEINBASED DRUGS WHICH ARE LARGE MOLECULES BOTH COMPANIES ALSO ARE EXAMPLES OF AN EMERGING APPROACH TO DRUG DISCOVERY IN WHICH A DRUG IS CONCEIVED AND DESIGNED ATOM BY ATOM USING EXTREMELY POWERFUL COMPUTERS AND TECHNOLOGIES SUCH AS XRAY CRYSTALLOGRAPHY AND NUCLEAR MAGNETICRESONANCE SPECTROSCOPY IN THE PAST DRUGS OFTEN HAVE BEEN DISCOVERED THROUGH TRIAL AND ERROR USING RANDOM SCREENING TECHNIQUES OF VARIOUS COMPOUNDS FOR EFFECTIVENESS THERE'S AN ENORMOUS AMOUNT OF INTEREST BY MAJOR DRUG COMPANIES IN THIS SMALLMOLECULE RESEARCH AND DEALS LIKE THESE ARE GOING TO BECOME COMMON SAYS LINDA MILLER A PAINEWEBBER INC ANALYST SHE SAYS AN IMPORTANT ADVANTAGE IS THESE COMPOUNDS MAY BE TAKEN ORALLY MOST LARGE PROTEINBASED BIOTECHNOLOGY DRUGS ARE TAKEN BY INJECTION STANLEY C ERCK CHAIRMAN AND CHIEF EXECUTIVE AT PROCEPT SAID THE FIRST AREA TO BE TARGETED UNDER THE WORK WITH SANDOZ IS LIKELY TO BE A POTENTIAL DRUG TO TREAT ORGAN TRANSPLANTREJECTION SANDOZ IS CURRENTLY THE LEADER OF THAT MARKET VALUED AT 800 MILLION THIS YEAR WITH CYCLOSPORIN WHICH HAS REVOLUTIONIZED TRANSPLANT MEDICINE PROCEPT FOUNDED BY A HARVARD MEDICAL SCHOOL RESEARCHER HAS 70 EMPLOYEES AND EXPECTS REVENUE OF ABOUT 6 MILLION THIS YEAR FROM VARIOUS RESEARCH AGREEMENTS ITS LEAD INVESTOR IS HARVARD MANAGEMENT THE UNIVERSITY'S INVESTMENT ARM VERTEX WHICH IS PUBLICLY TRADED HAD REVENUE FOR THE SECOND QUARTER OF 49 MILLION JOSHUA BOGER CHIEF EXECUTIVE OF VERTEX NOTES THAT EACH OF THE TECHNOLOGIES IN THAT COMPANY'S APPROACH TO DRUG DESIGN ARE WELL ESTABLISHED AND IN USE AT THE BIG DRUG COMPANIES BUT HE SAYS THEY HAVEN'T APPLIED THEM IN A FOCUSED WAY TO DISCOVER NEW COMPOUNDS 9309160107 930916 INTERNATIONAL VOLKSWAGEN AG EXPECTS A PROFIT IN THIRD PERIOD WOLFSBURG GERMANY VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH TOLD A WORKER GATHERING THAT THE TIDE HAD TURNED AND THAT THE TROUBLED GERMAN CAR MAKER WOULD BE IN THE BLACK IN THE THIRD QUARTER EVEN IN THE FACE OF NEWLY DISCLOSED LOSSES AT ITS SPANISH SUBSIDIARY ON TUESDAY VW SAID ITS SPANISH SUBSIDIARY WOULD HAVE A 1993 LOSS OF 125 BILLION MARKS 7766 MILLION SPEAKING AT COMPANY HEADQUARTERS MR PIECH CLAIMED THAT THE TURNAROUND IN THE PROFIT SITUATION HAD BEEN ACHIEVED DESPITE THE CURRENT CRISIS YEAR AND IN SPITE OF EXPECTATIONS FOR ONLY A SLOW IMPROVEMENT IN THE ECONOMY NEXT YEAR THE NEWS OF BIG LOSSES AT THE SPANISH SUBSIDIARY CAUSED VW SHARES TO SINK 3 TUESDAY IN FRANKFURT TRADING VW CLOSED AT 35050 MARKS 218 DOWN 11 MARKS 683 FROM 36150 MARKS 9309160105 930916 POLITICS & POLICY PEOPLE THINK HEALTHCARE SYSTEM NEEDS FIXING BUT AREN'T SURE OF WHAT'S BROKEN SURVEY FINDS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICANS ARE CERTAIN OF ONE THING THE COUNTRY WOULD BE A LOT BETTER OFF IF ITS HEALTHCARE SYSTEM WERE OVERHAULED UNFORTUNATELY FOR PRESIDENT CLINTON AND HIS COMING HEALTHCARE REFORM PLAN THAT'S ABOUT ALL PEOPLE ARE SURE ABOUT RIGHT NOW A WALL STREET JOURNAL/NBC NEWS POLL SHOWS THERE ALSO IS A GREAT DEAL OF UNCERTAINTY AND AMBIVALENCE ABOUT THE PRECISE KIND OF CHANGE PEOPLE WANT AS WELL AS UNDERLYING CONCERNS THAT THE PLAN WILL CREATE NEW ILLS EVEN AS IT CURES OLD ONES THE ONE THING THAT'S CLEAR FROM THE SURVEY IS THAT MR CLINTON HAS SUCCEEDED IN CONVINCING PEOPLE THAT HEALTH CARE IS A BIG PROBLEM BY AN ENORMOUS MARGIN 78 TO 19 OF THOSE SURVEYED AGREE THAT THE SYSTEM DOESN'T MEET THE NEEDS OF MOST PEOPLE AND A MAJORITY 55 PREDICT THAT THE CLINTON HEALTHCARE PLAN WILL HELP THE NATION JUST 28 THINK IT WILL HURT IT PEOPLE THINK THE COUNTRY OVERALL WILL BENEFIT FROM A REFORM OF HEALTH CARE AND THAT'S THE BEST THING THE PRESIDENT HAS GOING FOR HIM SAY PETER HART A DEMOCRATIC POLLSTER AND ROBERT TEETER A REPUBLICAN POLLSTER WHO JOINTLY CONDUCTED THE JOURNAL/NBC SURVEY BUT JUST BENEATH THAT SENTIMENT LURK THE FEARS AND UNCERTAINTIES THAT MR CLINTON MUST ADDRESS BEFORE HE CAN SELL HIS PARTICULAR REFORM JUST 20 OF THOSE SURVEYED SAY THEY THINK THEY WILL BE HELPED BY THE CLINTON PLAN MORE THAN HALF 55 SAY THEY THINK THE CLINTON PLAN WILL FAIL TO SAVE THEM MONEY COMPARED WITH THE HEALTHCARE COSTS THEY WOULD INCUR WITHOUT IT THERE ALSO IS A FEAR OF LOSING BENEFITS WHILE 47 SAY THEY EXPECT THE STANDARD SET OF BENEFITS OFFERED UNDER THE CLINTON PLAN TO BE ABOUT THE SAME AS THOSE THEY RECEIVE NOW A QUARTER SAY THEY THINK THEIR BENEFITS WILL BE WORSE PERHAPS MOST TROUBLING FOR THE WHITE HOUSE 58 SAY THEY THINK JOBS WILL BE LOST BECAUSE OF THE PLAN'S EXPECTED REQUIREMENT THAT ALL EMPLOYERS PAY MUCH OF THE COST OF HEALTH COVERAGE FOR THEIR WORKERS DESPITE THEIR DESIRE FOR CHANGE PEOPLE ARE SATISFIED WITH A LOT OF THE ELEMENTS OF THE HEALTHCARE SYSTEM SAY MESSRS HART AND TEETER THE IMMEDIATE CHALLENGE IS GOING TO BE CONVINCING THE PUBLIC THAT REFORM MEANS SAVING MONEY AND PROVIDING THE PUBLIC WITH CARE AS GOOD AS THAT THEY'VE BEEN RECEIVING MR CLINTON IS GOING TO INVEST A LOT OF TIME AND ENERGY SELLING THE PLAN ACROSS THE NATION AS SOON AS IT'S UNVEILED ON WEDNESDAY THE FOLLOWING DAY HE WILL HAVE A HUGE EVENT ON THE WHITE HOUSE'S SOUTH LAWN TO PLUG THE PLAN THEN FLY TO SOUTHERN FLORIDA FOR A NATIONALLY TELEVISED TOWN HALL MEETING THE STOP IS DESIGNED TO SELL THE PLAN TO POLITICALLY PIVOTAL SENIOR CITIZENS WHO MAKE UP A BIG PORTION OF THE FLORIDA POPULATION OVER THE FOLLOWING TWO WEEKS THE PRESIDENT WILL BE IN NEW YORK CALIFORNIA AND PROBABLY THE MIDWEST DOING THE SAME KIND OF SALES WORK IN CALIFORNIA HE WILL SPEAK TO THE AFLCIO HE ALSO WILL MEET WITH DOCTORS STRESSING THE PLAN'S PROVISIONS SIMPLIFYING THE REAMS OF PAPERWORK WITH WHICH THEY NOW COPE THE CAMPAIGN WILL STRESS THAT THE CLINTON PLAN WILL PROVIDE SECURITY TO PEOPLE PRODUCE REAL SAVINGS AND SIMPLIFY THE SYSTEM FOR CONSUMERS AND DOCTORS SAYS RICHARD CELESTE THE FORMER GOVERNOR OF OHIO WHO IS LEADING A DEMOCRATIC SALES EFFORT IF THERE IS A DIVIDING LINE IT IS BETWEEN THOSE WHO WANT CHANGE AND THERE MAY BE DISAGREEMENT ABOUT WHAT KIND OF CHANGE AND THOSE WHO DON'T WANT CHANGE HE SAID IN AN INTERVIEW THROUGH THIS CAMPAIGN THE FUNDAMENTAL PROBLEM FACING MR CLINTON IS THAT PEOPLE SEEM UNCERTAIN ABOUT PRECISELY WHAT THE PROBLEM IS WITH THE CURRENT SYSTEM ASKED WHAT THEY CONSIDER THE MOST IMPORTANT HEALTHCARE ISSUE 42 CITE THE COST OF HEALTH CARE BUT A NEARLY EQUAL SHARE 41 CITE THE PROBLEM OF PEOPLE WHO AREN'T COVERED BY INSURANCE PEOPLE CLEARLY DON'T THINK THAT THE QUALITY OF HEALTH CARE THEY RECEIVE IS THE ISSUE ALMOST THREEQUARTERS 72 SAY THEY ARE SATISFIED WITH THE QUALITY THEY AND THEIR FAMILIES RECEIVE AND 69 SAY THEY ARE SATISFIED WITH THE AVAILABILITY OF CARE BUT DOUBTS BEGIN TO CREEP IN WHEN PEOPLE ARE ASKED WHETHER THEY COULD HANDLE A BIG COSTLY ILLNESS JUST 52 SAY THEY ARE SATISFIED WITH THE ABILITY OF THEIR INSURANCE PLAN TO COVER THEM IN THE EVENT OF A CATASTROPHIC ILLNESS WHILE 38 EXPRESS DISSATISFACTION IN SHORT PEOPLE AT THIS STAGE SEEM TO BE DEMANDING OF MR CLINTON THE IMPOSSIBLE FIX THEY WANT AT LEAST ALL THE BENEFITS THEY GET NOW AND MORE SECURITY THAT THEY WILL KEEP GETTING THEM WANT EVERYONE ELSE COVERED AND WANT IT ALL WITHOUT A BIG INCREASE IN THE COST TO THEM IN PART PEOPLE SEEM TO EXPECT THIS HAPPY OUTCOME BECAUSE THEY THINK THERE IS SO MUCH INEFFICIENCY IN THE SYSTEM THAT MUCH CAN BE ACCOMPLISHED JUST BY TIGHTENING IT UP A BIG MAJORITY 84 SAY COSTS CAN BE REDUCED WITHOUT COMPROMISING THE QUALITY OF CARE BUT PEOPLE ALSO SEEM WILLING TO PAY AT LEAST A LITTLE MORE AS PART OF AN OVERHAUL A SIZABLE MAJORITY 79 SAY THEY WOULD BE WILLING TO PAY AN ADDITIONAL 50 A YEAR IN HEALTHCARE COSTS TO ENSURE THAT ALL PEOPLE GET HEALTH COVERAGE AND CAN KEEP IT IF THEY LOSE OR CHANGE JOBS OR ENCOUNTER SERIOUS ILLNESS AND 72 SAY THEY FIND A 1APACK INCREASE IN THE TAX ON CIGARETTES ACCEPTABLE IT'S ALSO CLEAR WHAT PEOPLE DON'T WANT RESTRICTIONS ON THEIR FREEDOM TO PICK DOCTORS OR THE SERVICES AVAILABLE TO THEM ASKED TO PICK THE WORST MISTAKE THE PRESIDENT COULD MAKE IN REFORMING THE HEALTHCARE SYSTEM MORE OF THOSE SURVEYED 24 CITED LIMITING THE RIGHT TO CHOOSE A DOCTOR THAN ANYTHING ELSE AND A MAJORITY SAY THEY WOULD FIND IT TOTALLY UNACCEPTABLE FOR THE PACKAGE TO LIMIT SOME OF THE HEALTH SERVICES AVAILABLE TO SENIOR CITIZENS UNDER MEDICARE IT ISN'T JUST SENIOR CITIZENS WHO OBJECT A MAJORITY OF ADULTS OF ALL AGES SHARE THE SENTIMENT THAT PROBABLY MEANS SAY MESSRS HART AND TEETER THAT EVEN YOUNGER PEOPLE FEAR THAT CURBS ON SERVICES OFFERED TO OLDER CITIZENS COULD BE A FIRST STEP TO LIMITS ON SERVICES TO OTHERS DO YOU AGREE OR DISAGREE WITH THESE STATEMENTS ABOUT PRESIDENT CLINTON'S HEALTHCARE REFORM PACKAGE 9309160104 930916 FORMER CHAIRMAN CHIEF OF BOSTON CO IS ACCUSED BY SEC BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED GEORGE PHILLIPS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOSTON CO OF CAUSING THE ACCOUNTING SCANDAL THAT TAINTED THE MONEYMANAGEMENT FIRM ALMOST FIVE YEARS AGO MR PHILLIPS PREVIOUSLY HAD BEEN BILLED AS THE EXECUTIVE WHO WOULD REPAIR BOSTON CO'S REPUTATION AFTER DISCLOSURES THAT ACCOUNTING SHENANIGANS CAUSED THE COMPANY'S THENPARENT SHEARSON LEHMAN BROTHERS INC TO OVERSTATE ITS NET INCOME BY 30 MILLION BUT THE SEC IN AN ORDER INITIATING DISCIPLINARY PROCEEDINGS AGAINST MR PHILLIPS SAID THE BOSTON CO VETERAN WAS FULLY AWARE OF THE ACCOUNTING SHORT CUTS PROPOSED BY THE COMPANY'S PRESIDENT AND CHIEF FINANCIAL OFFICER AND DIDN'T REPORT THEM MR PHILLIPS' LAWYER DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT IN ONE INSTANCE THE SEC ALLEGED THAT MR PHILLIPS DIDN'T ACT EVEN AFTER THE CHIEF FINANCIAL OFFICER DESCRIBED ALL OF THE ITEMS TO PHILLIPS AS BEING AGGRESSIVE ACCOUNTING POSITIONS THAT HAD BEEN TAKEN ONE BY ONE AND THAT WHILE INDIVIDUALLY THEY MAY BE DEFENSIBLE COLLECTIVELY THERE'S JUST TOO MUCH' TO BE DEFENSIBLE THE SEC SAID MR PHILLIPS'S FAILURE TO ACT BREACHED HIS DUTY TO SHEARSON'S SHAREHOLDERS AND CAUSED THE FILING OF FALSE FINANCIAL REPORTS FOR THE FIRST THREE QUARTERS OF 1988 THE SUBSEQUENT REVELATION OF THE OVERSTATED PROFITS PROMPTED THE FIRING OF JAMES VON GERMETEN BOSTON CO PRESIDENT AND THE RESIGNATIONS OF JOSEPH MURPHY CHIEF FINANCIAL OFFICER AND MICHAEL WALSH TREASURER IN JANUARY 1989 MR PHILLIPS WHO WAS THEN CHAIRMAN OF THE COMPANY STEPPED BACK INTO HIS CEO ROLE AND SERVED IN THOSE POSITIONS UNTIL HIS RETIREMENT IN MARCH 1990 UNDER THE SEC'S ADMINISTRATIVE PROCEEDINGS THE STIFFEST PENALTY THAT COULD BE SOUGHT AGAINST MR PHILLIPS WOULD BE AN ORDER TO STOP VIOLATING SEC RULES BOSTON CO AND MESSRS VON GERMETEN AND WALSH PREVIOUSLY HAVE SETTLED DISCIPLINARY ACTIONS BROUGHT BY THE SEC MR MURPHY IS CONTESTING THE SEC'S CIVIL SUIT AGAINST HIM IN FEDERAL COURT IN BOSTON BOSTON CO WAS ACQUIRED BY MELLON BANK CORP EARLIER THIS YEAR 9309160102 930916 POLITICS & POLICY HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON TELEPHONE INTERVIEWS OF 1006 ADULTS CONDUCTED FRIDAY THROUGH MONDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 263 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY AGE AND INCOME TO ASSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 31 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 45 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP SEE RELATED ARTICLE POLITICS & POLICY PEOPLE THINK HEALTHCARE SYSTEM NEEDS FIXING BUT AREN'T SURE OF WHAT'S BROKEN SURVEY FINDS WSJ SEPT 16 1993 9309160101 930916 WHO'S NEWS NEW YORK LAWYER BARBASH IS NAMED TO POST AT SEC WASHINGTON NEW YORK LAWYER BARRY BARBASH WAS NAMED DIRECTOR OF THE SECURITIES AND EXCHANGE COMMISSION DIVISION THAT OVERSEES MUTUAL FUNDS FINANCIAL ADVISERS AND PUBLICUTILITY HOLDING COMPANIES THE 39YEAROLD MR BARBASH SPENT 12 YEARS IN PRIVATE LAW PRACTICE AT NEW YORKBASED WILLKIE FARR & GALLAGHER MOST RECENTLY AS A PARTNER IN THE LAW FIRM'S CORPORATE AND FINANCE DEPARTMENT EARLY IN HIS CAREER MR BARBASH WORKED AS A STAFF ATTORNEY IN THE SEC'S DIVISION OF INVESTMENT MANAGEMENT THE FORMER HEAD OF THE DIVISION MARIANNE SMYTHE LEFT THIS YEAR TO RETURN TO PRIVATE LAW PRACTICE IN THE WASHINGTON FIRM WILMER CUTLER & PICKERING IN A RELATED APPOINTMENT LONGTIME SEC ENFORCEMENT LAWYER C GLADWYN GOINS WAS NAMED ASSOCIATE DIRECTOR OF THE INVESTMENT MANAGEMENT DIVISION WITH RESPONSIBILITY FOR LEGAL AND DISCLOSURE ISSUES MR GOINS MOST RECENTLY SERVED AS ASSOCIATE DIRECTOR OF THE SEC'S ENFORCEMENT DIVISION AND PREVIOUSLY HEADED THE AGENCY'S BRANCH OFFICE IN SAN FRANCISCO 9309160100 930916 JAPAN MAY EASE NEARBAN ON NEW ISSUES BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER A THREEYEAR HIATUS IT LOOKS AS IF JAPANESE COMPANIES CAN AGAIN TAP THE EQUITY MARKETS SEVERAL LARGE JAPANESE COMPANIES ARE KEEN TO SELL NEW SHARES BUT SINCE 1990 REGULATORS HAVE IMPOSED A VIRTUAL BAN ON NEW ISSUES ESPECIALLY AMONG THE BIG COMPANIES LISTED ON THE TOKYO STOCK EXCHANGE'S PRESTIGIOUS FIRST SECTION THEY FEARED THAT ADDING MORE STOCK TO A WEAK MARKET MIGHT PRECIPITATE A CRASH SO FAR THIS YEAR ONLY THREE COMPANIES ON THE EXCHANGE HAVE MADE NEW PUBLIC OFFERINGS COMPARED WITH 186 IN 1989 NOW REGULATORS APPEAR TO BE EASING THEIR POLICY SMALL COMPANIES ON JAPAN'S OVERTHECOUNTER MARKET HAVE MADE MORE THAN 60 INITIAL PUBLIC OFFERINGS SO FAR THIS YEAR UP FROM 34 FOR ALL OF 1992 OTC ISSUES WERE BANNED OUTRIGHT FOR PART OF 1991 THE BIGGEST TEST YET OF THE MARKET'S HEALTH COMES OCT 26 WHEN THE GOVERNMENT OFFERS EAST JAPAN RAILWAY CO TO THE PUBLIC JAPANESE INVESTORS ARE SHOWING STRONG INTEREST IN THE 740 BILLION YEN 7 BILLION ISSUE WHICH WILL BE LISTED ON THE TSE'S FIRST SECTION IF IT'S A HIT SECURITIES EXECUTIVES THINK THE GOVERNMENT WILL AGAIN LET FIRMS LISTED ON THE EXCHANGE'S FIRST SECTION ISSUE ADDITIONAL STOCK OBVIOUSLY BROKERAGE OFFICIALS ARE DELIGHTED AT THE PROSPECT OF LOTS OF NEW ISSUES I'M AIMING TO REOPEN THE BLUECHIP MARKET FOR NEW ISSUES THIS YEAR VOWED AKIRA OGINO MANAGING DIRECTOR OF CORPORATE FINANCE AT NOMURA SECURITIES CO HE ESTIMATED THAT MORE THAN 100 LARGE JAPANESE CONCERNS WANT TO ISSUE SHARES THERE IS A NOTE OF CAUTION RATHER THAN TAKE ON A GIANT ISSUE AS ITS FIRST OFFERING AFTER THE BAN ENDS HE SAID NOMURA WILL START WITH A COMPANY WITH GOOD GROWTH POTENTIAL A NINTENDO CO OR A SEGA ENTERPRISES LTD IF SMALLER ISSUES SELL WELL NOMURA INTENDS TO HANDLE BIGGER OFFERINGS JAPANESE FINANCIALDISCLOSURE RULES PREVENT COMPANIES FROM COMMENTING ON THEIR STOCKISSUING PLANS BUT ANALYSTS SUGGEST THAT BRIDGESTONE CORP AND NIPPON STEEL CORP AMONG OTHERS WOULD LIKE TO RAISE FUNDS ON THE MARKET EITHER THROUGH A STOCK OFFERING OR BY SELLING A SUBSIDIARY'S SHARES ON THE TSE'S LESSPRESTIGIOUS SECOND SECTION IT'S ALSO THOUGHT THAT JAPANESE BANKS SEEKING TO IMPROVE THE QUALITY OF THEIR CAPITAL SUCH AS SAKURA BANK LTD WILL CONSIDER ISSUING SHARES BUT JAPANESE AND US FIRMS HERE WARN THAT JAPAN'S GROUND RULES HAVE TO CHANGE BEFORE THERE'S A HEALTHY MARKET FOR NEW SHARES UNDER EXISTING RULES TO ISSUE SHARES A COMPANY MUST PAY OUT 30 OR MORE OF ITS PROFIT AS DIVIDENDS AND MUST HAVE POSTED A PROFIT FOR THE PREVIOUS TWO YEARS GIVEN JAPAN'S CURRENT ECONOMIC WOES THOSE REQUIREMENTS RULE OUT PLENTY OF BIG PLAYERS THERE ARE A LOT OF COMPANIES OUT THERE THAT WANT TO RAISE MONEY THEY'RE JUST WAITING FOR A GREEN LIGHT FROM REGULATORS SAID JERRY COUGHLAN EXECUTIVE DIRECTOR AT MORGAN STANLEY JAPAN LTD WHAT DOES THE THAW MEAN FOR US BROKERS MR COUGHLAN EXPECTS THE ISSUES MARKET TO OPEN UP AND SEES A PLACE FOR FOREIGN FIRMS BUT HE ADDED THAT JAPANESE RULES THAT LIMIT THE AMOUNT OF SHARES ANY SINGLE BUYER CAN PURCHASE REPRESENT SERIOUS PROBLEMS FOR FOREIGN BROKERS THAT'S BECAUSE JAPANESE BROKERS CAN SELL SMALL LOTS OF STOCK THROUGH THEIR VAST RETAIL NETWORKS WHILE US FIRMS HERE SELL MAINLY IN LARGE LOTS TO INSTITUTIONS MR COUGHLAN SAID JAPAN MAY BE WILLING TO CHANGE THIS RULE HOWEVER THE KINDS OF COMPANIES THAT GO PUBLIC ALSO WILL DETERMINE HOW US FIRMS FARE MR COUGHLAN SAID WELLKNOWN BANKS WILL BE EASY FOR US COMPANIES TO SELL INTERNATIONALLY HE SAID AND THEREFORE AMERICAN FIRMS STAND TO GET SOME OF THAT BUSINESS JAPANESE COMPANIES WITH LITTLE NAME RECOGNITION ABROAD WILL FAVOR RETAILORIENTED JAPANESE FIRMS IT WILL PUSH THE MARKET AWAY FROM US AND AWAY FROM THE INTERNATIONAL INSTITUTIONAL MARKET HE SAID A LOOMING CAPITAL SQUEEZE MAY PROMPT REGULATORS TO QUICKEN THE PACE OF STOCK OFFERINGS IN JAPAN WITHOUT ACCESS TO NEW STOCK JAPANESE COMPANIES HAVE BEEN USING EXPENSIVE ALTERNATIVES SUCH AS BANK BORROWING AND ISSUING CORPORATE BONDS AND EQUITYLINKED CONVERTIBLE BONDS OR HAVE SIMPLY DONE WITHOUT EXTRA FUNDING WE WISH WE COULD HAVE A STOCK OFFERING IT'S MUCH CHEAPER THAN ISSUING BONDS SAID TORU HASEGAWA ASSISTANT MANAGER OF INVESTOR RELATIONS AT SONY CORP SONY RECENTLY ANNOUNCED IT WAS ISSUING AN 80 BILLION YEN BOND TO REFINANCE A 100 BILLION YEN BOND THAT COMES DUE IN JANUARY 9309160099 930916 LETTERS TO THE EDITOR FURNITURE FIRES US LAB FIGHTS FURNITURE FIRES WITH FIRE AUG 10 MISSTATES THE REQUIREMENTS OF CALIFORNIA AND ILLINOIS REGULATIONS DEALING WITH FURNITURE FLAMMABILITY WHILE BOTH STATES HAVE SUCH REGULATIONS IN PLACE EACH OF THEM RECOGNIZES THE VALUE OF BUILDINGS INCLUDING HOTELS THAT ARE EQUIPPED WITH AUTOMATIC SPRINKLER SYSTEMS IN SUCH CASES UPHOLSTERED FURNITURE INTENDED FOR USE IN PUBLIC AREAS OF SUCH BUILDINGS NEED NOT MEET THE OPEN FLAME TEST METHOD DESCRIBED IN THE ARTICLE ALTHOUGH THE CIGARETTE IGNITION TEST REQUIREMENT REMAINS A BASELINE SAFETY MEASURE THIS BALANCED APPROACH TO REGULATION IN CALIFORNIA AND ILLINOIS SHOULD SERVE AS A MODEL FOR THE CONSUMER PRODUCT SAFETY COMMISSION AS IT CONSIDERS THIS ISSUE 9309160098 930916 FINANCING BUSINESS NOVA CORP OF ALBERTA NOVA CORP OF ALBERTA CALGARY ALBERTA SAID ITS NOVACOR CHEMICALS LTD SUBSIDIARY ARRANGED A CREDIT FACILITY FOR 520 MILLION CANADIAN DOLLARS US393 MILLION WITH SIX CANADIAN BANKS NOVA SAID PART OF THE FUNDS WILL BE USED TO CONSOLIDATE EXISTING DEBT OF NOVACOR AND THE BALANCE WILL BE USED TO FUND FUTURE CAPITAL REQUIREMENTS 9309160097 930916 TECHNOLOGY & HEALTH WHITE HOUSE IS BACKING SUPERHIGHWAYS FOR DATA BUT SAYS IT NEEDS MORE TIME BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION REAFFIRMED ITS COMMITMENT TO HELP BUILD INFORMATION SUPERHIGHWAYS BUT SAID IT NEEDS MORE TIME TO SORT THROUGH REGULATORY QUESTIONS THAT THREATEN TO STALL THE EFFORT IN A REPORT THE ADMINISTRATION PLEDGED TO SEEK PASSAGE OF LEGISLATION BY THE END OF NEXT YEAR TO INCREASE COMPETITION IN CABLE TELEVISION LOCAL TELEPHONE SERVICE AND OTHER MARKETS THAT HAVE BEEN DOMINATED BY MONOPOLIES THAT GOAL WAS THE CENTERPIECE OF A PLAN TO PROMOTE PRIVATESECTOR INVESTMENT IN NEW HIGHCAPACITY NETWORKS TO CARRY COMPUTER DATA VOICE AND VIDEO INTO HOMES OTHER PARTS OF THE PLAN INCLUDE SEEKING WAYS TO ENSURE SECURITY OF THE DATA NETWORKS STARTING PUBLIC HEARINGS IN DECEMBER TO HELP DETERMINE HOW TO KEEP THE INFORMATION SERVICES AFFORDABLE FOR ALL AND CONTINUING FUNDING OF RESEARCH AND DEVELOPMENT MANY INDUSTRY OFFICIALS PRAISED THE CLINTON ADMINISTRATION'S GOALS BUT SOME SAID THEY HAD EXPECTED THE ADMINISTRATION TO LAY OUT SPECIFIC POLICIES BY NOW THEY SAID YESTERDAY'S REPORT CALLED THE NATIONAL INFORMATION INFRASTRUCTURE PLAN FALLS SHORT ON DETAILS WE STILL HAVE A VACUUM SAID AUBREY SARVIS VICE PRESIDENT OF FEDERAL RELATIONS FOR BELL ATLANTIC CORP THIS ADMINISTRATION HAS ONLY BEEN IN OFFICE FOR EIGHT MONTHS BUT WE'RE STILL LOOKING TO THEM FOR THEIR RECOMMENDATIONS IN PARTICULAR THE ADMINISTRATION HASN'T TAKEN A STAND YET ON WHETHER BELL ATLANTIC AND OTHER REGIONAL PHONE COMPANIES SHOULD HAVE MORE FREEDOM TO PROVIDE VIDEO PROGRAMMING IN COMPETITION WITH CABLE COMPANIES IN THE PHONE COMPANIES' SERVICE AREA A FEDERAL JUDGE LAST MONTH GAVE BELL ATLANTIC THE GREEN LIGHT TO DO SO BUT EXPECTED APPEALS COULD TAKE YEARS TO SORT OUT CABLE COMPANIES MEANWHILE ARE SEEKING GREATER FREEDOM TO PROVIDE LOCAL PHONE SERVICE BUT THE ADMINISTRATION CITING IN PART THE NEED TO GET INPUT FROM A NUMBER OF AGENCIES HASN'T YET TESTIFIED ON A SENATE BILL THAT WOULD OPEN UP LOCAL PHONE COMPETITION THE BILL'S SPONSORS DANIEL INOUYE D HAWAII AND JOHN DANFORTH R MO HAVE ASKED THE ADMINISTRATION TO TESTIFY NEXT MONTH VICE PRESIDENT AL GORE AND OTHER ADMINISTRATION OFFICIALS HAVE BEEN MEETING WITH TELECOMMUNICATIONS EXECUTIVES OVER THE PAST FOUR MONTHS IN AN EFFORT TO START SHAPING THE ADMINISTRATION'S POLICIES ON THE DATA HIGHWAYS YESTERDAY PRESIDENT CLINTON ESTABLISHED A PRIVATESECTOR ADVISORY COUNCIL TO BE NAMED IN DECEMBER THAT WILL ADVISE THE ADMINISTRATION OVER THE NEXT TWO YEARS WE'LL HAVE AS MANY MEETINGS AS PEOPLE CAN STAND SAID LARRY IRVING WHO DIRECTS TELECOMMUNICATIONS POLICY WITHIN THE COMMERCE DEPARTMENT HE SAID THE ADMINISTRATION AIMED TO BUILD CONSENSUS WITHIN THE PRIVATE SECTOR BEFORE LAUNCHING AN EFFORT TO REFORM COMMUNICATIONS LAWS 9309160096 930916 PLACER DOME TESTS GOLD PROJECT VANCOUVER BRITISH COLUMBIA PLACER DOME INC SAID IT MADE A RESOURCE ESTIMATE THAT INDICATES THERE ARE 48 MILLION OUNCES OF GOLD AT THE FIRST DRILLING AREA OF ITS 70OWNED LAS CRISTINAS PROPERTY IN VENEZUELA THE MINING CONCERN SAID DRILLING IS STILL IN PROGRESS AT THE FIRST SITE AND HASN'T YET STARTED ON SIX OTHER TARGETS AT LAS CRISTINAS THAT WILL BE DRILLED LATER PLACER DOME SAID IT WILL START A FEASIBILITY STUDY OF THE PROPERTY NEXT YEAR THE REMAINING 30 OF THE LAS CRISTINAS PROJECT IS OWNED BY THE STATE OF VENEZUELA 9309160095 930916 ABREAST OF THE MARKET STOCKS END SESSION WITH GAINS FOLLOWING SWING IN BOND MARKET BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH BONDS IN THE DRIVER'S SEAT THE STOCK MARKET TOOK A WILD RIDE BEFORE ENDING THE DAY MOSTLY HIGHER EQUITIES TUMBLED IN TANDEM WITH TREASURY BONDS IN THE MORNING AS INVESTORS TOOK PROFITS AMID RENEWED JITTERS ABOUT INFLATION THE MOVES CAME IN THE WAKE OF A GOVERNMENT REPORT ON CONSUMER PRICES TUESDAY THAT SHOWED A PICKUP IN PRICES BUT BY MIDDAY BOTH BONDS AND STOCKS WERE ON THE MEND SHARE PRICES CRACKED SOLIDLY INTO POSITIVE TERRITORY IN THE FINAL HOUR AND FINISHED NEAR THEIR SESSION HIGHS THE DOW JONES INDUSTRIAL AVERAGE SWUNG THROUGH A 50POINT RANGE TUMBLING 30 POINTS IN THE OPENING MINUTES OF TRADING AND FINISHING THE SESSION WITH A RISE OF 1789 POINTS OR 049 TO 363365 MOST BROAD INDEXES POSTED SOMEWHAT NARROWER GAINS BUT THE NASDAQ COMPOSITE INDEX OF OVERTHECOUNTER STOCKS SURGED 691 POINTS OR 094 TO 73955 THE NASDAQ INDEX HAD FALLEN MORE SHARPLY THAN OTHER BAROMETERS EARLIER THIS WEEK NEW YORK STOCK EXCHANGE VOLUME WAS ACTIVE AT 2944 MILLION SHARES UP FROM 2586 MILLION YESTERDAY AND THE HEAVIEST SINCE AUG 25 WHEN IT LAST TOPPED 300 MILLION THE STANDARD & POOR'S 500 STOCK INDEX INCREASED 170 OR 037 TO 46160 THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX ADDED 070 OR 027 TO 25567 AND THE DOW JONES EQUITY MARKET INDEX GAINED 154 OR 035 TO 43818 LOWER BOND PRICES MEAN A HIGHER BOND YIELD AND IT IS THAT JUMP THAT RATTLED STOCK INVESTORS AS BOND YIELDS INCREASE THE RELATIVE ATTRACTIVENESS OF THE STOCK MARKET'S POTENTIAL RETURN DECREASES BUT ONCE THE BOND MARKET'S DECLINE EASED INVESTORS GAINED CONFIDENCE TO SNAP UP STOCKS AT THEIR MARKEDDOWN PRICES SAID DENNIS E JARRETT MARKET STRATEGIST AT KIDDER PEABODY & CO WE HAD A WEAK MARKET FOR THE PAST WEEK SO WE WERE RIPE FOR A LITTLE BARGAINHUNTING HE SAID THAT SEEMS TO BE THE PROMINENT PSYCHOLOGY NOW DOWN AN EIGHTH THE MARKET IS A SCREAMING BUY ADDS MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO HE FINDS THAT TROUBLING HOWEVER AND BELIEVES STOCKS ARE OVERVALUED RELATIVE TO THE PROSPECTS FOR CORPORATE PROFITS I THINK IT'S A MARKET LABORING AT ITS HIGHS IT MAY FLOUNDER AROUND HERE FOR A WHILE BUT I THINK THE RISKREWARD RATIO ISN'T FAVORABLE MR METZ SAID HE PREDICTED MORE WEAKNESS IN BOTH BONDS AND STOCKS WALT DISNEY CO TUMBLED 1 1/2 TO 39 1/8 AFTER GOLDMAN SACHS & CO TRIMMED AN ESTIMATE FOR THE COMPANY'S FISCAL 1993 EARNINGS BY SEVEN CENTS TO 171 A SHARE GOLDMAN CITED CONCERN THE BURBANK CALIF COMPANY'S RESULTS WILL BE HURT BY ECONOMIC WEAKNESS AND BY A POSSIBLE DROP IN FLORIDA TOURISM BECAUSE OF A RECENT WAVE OF VIOLENCE THERE AGAINST VISITORS FEDERAL EXPRESS SURGED 3 3/8 TO 58 3/4 THE MEMPHIS TENN PACKAGE DELIVERY CONCERN HAD A PROFIT OF 60 CENTS A SHARE FOR THE FISCAL FIRST QUARTER ENDED AUG 31 A YEAR EARLIER THE COMPANY POSTED A LOSS OF 458 MILLION OR 84 CENTS A SHARE AFTER A ONETIME ACCOUNTING CHARGE OF 559 MILLION FEDERAL EXPRESS HELPED LIFT THE DOW JONES TRANSPORTATION AVERAGE TO A SOLID GAIN OF 1176 OR 073 TO 162429 SEVERAL AIRLINES ALSO ADVANCED SOUTHWEST AIRLINES WAS UP 1 1/2 TO 33 3/8 UAL PARENT OF UNITED AIRLINES INCREASED 1 1/2 TO 143 3/4 DIGITAL EQUIPMENT FELL 1 3/4 TO 38 1/4 ANALYSTS WERE DISAPPOINTED WITH THE TONE OF A MEETING HOSTED TUESDAY BY EXECUTIVES OF THE MAYNARD MASS COMPUTER MAKER MANY ARE NOW CONVINCED THE COMPANY WILL POST A LOSS FOR THE FIRST QUARTER THAT ENDS THIS MONTH A FIRST BOSTON ANALYST WAS SAID TO HAVE CUT A FORECAST ROYAL DUTCH PETROLEUM TOPPED THE BIG BOARD MOST ACTIVE LIST FOR A FOURTH STRAIGHT DAY RISING 3/8 TO 100 1/2 ON VOLUME OF 64 MILLION SHARES ANALYSTS HAVE TIED THE ACTIVITY TO DIVIDENDRELATED TRADING STRATEGIES WHICH ARE OFTEN DONE FOR TAX REASONS BEST BUY CLIMBED 4 3/8 TO 45 1/4 AFTER IT REPORTED EARNINGS OF 36 CENTS A SHARE FOR THE FISCAL SECOND QUARTER ENDED LAST MONTH UP FROM 15 CENTS A YEAR AGO ANALYSTS HAD EXPECTED A PROFIT OF JUST 31 CENTS FROM THE BLOOMINGTON MINN ELECTRONICS AND COMPUTER RETAILER GENERAL DYNAMICS ADVANCED 2 7/8 TO 99 1/2 AFTER THE COMPANY DECLARED A 12 A SHARE SPECIAL DISTRIBUTION AND INCREASED ITS QUARTERLY DIVIDEND TO 60 CENTS FROM 40 CENTS THE FALLS CHURCH VA COMPANY ALREADY HAS PAID 38 IN SPECIAL DISTRIBUTIONS THIS YEAR USING THE PROCEEDS FROM THE SALE OF ASSETS BOSTON SCIENTIFIC SKIDDED 2 1/8 TO 11 1/4 THE COMPANY PROJECTED A SMALLER THAN EXPECTED GAIN OF 15 TO 18 IN REVENUE FOR THE THIRD QUARTER THE WATERTOWN MASS MEDICAL DEVICE MAKER BLAMED UNCERTAINTIES OVER THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PLAN AND DELAYS IN WINNING NEW PRODUCT APPROVALS FROM THE FOOD AND DRUG ADMINISTRATION IT HAD EXPECTED MORE THAN 20 REVENUE GROWTH PENNZOIL SLIPPED 1 TO 62 1/8 AN OFFERING OF FIVE MILLION ADDITIONAL SHARES OF THE HOUSTON OIL AND GAS PRODUCER WAS PRICED LATE TUESDAY AT 6250 A SHARE PROCEEDS WILL BE USED TO REPAY DEBT THE BIG THREE AUTO MAKERS SNAPPED BACK FROM WEAKNESS GENERAL MOTORS ROSE 1 1/2 TO 47 1/4 FORD MOTOR CLIMBED 1 TO 54 3/4 AND CHRYSLER GAINED 7/8 TO 45 1/2 GM AGREED TO SELL ITS ALLISON GAS TURBINE UNIT TO A COMPANY FORMED BY NEW YORK INVESTMENT FIRM CLAYTON DUBILIER & RICE TERMS WEREN'T DISCLOSED 9309160094 930916 LETTERS TO THE EDITOR WHY CANADA'S DOCTORS FLEE SOUTH DR JEROME ARNETT'S AUG 6 AMERICAS COLUMN ARGUED THAT A HEALTHCARE SYSTEM BASED ON CANADA'S COULD NOT WORK IN THE US IN AN AUG 24 LETTER TO THE EDITOR SEN PAUL WELLSTONE OF MINNESOTA REBUTTED DR ARNETT CANADIAN HEALTH CARE IS ON RIGHT TRACK AS THE ARNETT PIECE WAS BASED ON A LECTURE I DELIVERED IN DALLAS I FEEL COMPELLED TO RESPOND TO SEN WELLSTONE THE SOLUTION TO THE AMERICAN HEALTH CARE PROBLEM IS NOT THE MUCH WORSE IN MANY RESPECTS CANADIAN SINGLEPAYER GOVERNMENTRUN HEALTH CARE PROBLEM BUT A UNIVERSAL SYSTEM THAT MAKES THE PATIENT THE GATEKEEPER TO THE PROGRAM SUCH A SCHEME EXISTS TODAY IN SINGAPORE A VARIANT THEREOF MEDISAVE ACCOUNTS IS BEING RECOMMENDED AT THIS MOMENT BY MANY THOUGHTFUL AMERICANS NOTABLY MY NAMESAKE BUT NOT RELATIVE JOHN GOODMAN DIRECTOR OF THE NATIONAL CENTER FOR POLICY ANALYSIS IN DALLAS 9309160093 930916 FINANCING BUSINESS IRVINE CO IRVINE CO A MAJOR CALIFORNIA REAL ESTATE DEVELOPER SAID IT PLANS TO RAISE MORE THAN 200 MILLION BY TAKING ITS APARTMENT BUSINESS PUBLIC THE NEW COMPANY IRVINE APARTMENT COMMUNITIES INC WILL OWN IRVINE CO'S ENTIRE PORTFOLIO OF 43 APARTMENT COMMUNITIES IN ORANGE COUNTY AND WILL ACT AS THE DEVELOPER OF ALL NEW RENTAL APARTMENTS ON THE PRIVATE DEVELOPMENT COMPANY'S LAND THE NEW COMPANY WILL OPERATE AS A REAL ESTATE INVESTMENT TRUST 9309160092 930916 TECHNOLOGY & HEALTH IN THE LAB FRESH IDEAS ON FROZEN BLOOD SPUR FIRM BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL PASADENA CALIF A TINY COMPANY'S RESEARCH ON FREEZING BLOOD IS CAUSING SOME SCIENTIFIC AND COMMERCIAL PULSES TO RACE A CRYOPHARM CORP LAB RESEARCHER PULLS A FLAT PLASTIC POUCH FROM A REFRIGERATOR'S FREEZER COMPARTMENT AND SOAKS IT IN A WARMWATER BATH MINUTES LATER THE CONTENTS THAW INTO A THICK CRIMSON SOUP OF HUMAN BLOOD CELLS THE PRESERVATION AND THAWING PROCESS WAS DONE FAR MORE QUICKLY AND CHEAPLY THAN CURRENT PRACTICES PERMIT FREEZING BLOOD AND ITS COMPONENTS WITHOUT DESTROYING THEIR VITAL BIOLOGIC PROPERTIES IS THE RESEARCH FOCUS AT HEADQUARTERS HERE TUCKED INSIDE A CONVERTED WAREHOUSE NEAR THE CALIFORNIA INSTITUTE OF TECHNOLOGY IN GREEK KRUOS MEANS COLD AND PHARMAKON MEANS MEDICINE CRYOPHARM GOT INSPIRATION FOR ITS COLDSTORAGE TECHNOLOGY USING PATENTED ADDITIVES TO EXTEND BLOOD PRODUCTS' SHORT SHELF LIVES FROM SOME SURPRISING SOURCES INCLUDING NONMELTING CHOCOLATE BARS DESERT ORGANISMS THAT SURVIVE LONG DRY SPELLS AND INDIRECTLY FISH FOOD KIDS USED TO BUY A PACKET OF DRIED SEAMONKEYS TO DUMP INTO THEIR AQUARIUMS TO FEED THEIR FISH IT'S THE SAME PRINCIPLE SAYS RAYMOND P GOODRICH CRYOPHARM'S DIRECTOR OF RESEARCH AND DEVELOPMENT THE SCIENTIST NOW 30 YEARS OLD COFOUNDED THE COMPANY IN 1987 AS AN OFFSHOOT OF HIS DOCTORAL RESEARCH AT CALTECH IF CRYOPHARM CAN ACCOMPLISH WHAT IT'S TALKING ABOUT IT WILL MEAN A DRAMATIC CHANGE IN TRANSFUSION AND BLOODBANKING PRACTICES SAYS SCOTT ROWLEY DIRECTOR OF THE CLINICAL CRYOBIOLOGY LABORATORY AT FRED HUTCHINSON CANCER RESEARCH CENTER IN SEATTLE A LEADER IN BONEMARROW TRANSPLANTATION AND OTHER INNOVATIVE CANCER THERAPIES TO MAXIMIZE THE THERAPEUTIC USEFULNESS OF DONATED BLOOD COLLECTION CENTERS SEPARATE IT INTO ITS COMPONENTS EACH WITH DISTINCT STORAGE LIMITATIONS FREEZING OF THE COMPONENTS ISN'T ENTIRELY NEW BUT EXISTING TECHNIQUES ARE CLUMSY AND EXPENSIVE RED BLOOD CELLS FOR EXAMPLE CAN BE FROZEN FOR MANY YEARS BUT ONLY IN A SPECIALIZED FREEZER AND THE CURRENT WAY OF FREEZING PLATELETS BLOOD'S CLOTMAKING COMPONENT DESTROYS AT LEAST HALF THE PRECIOUS CELLS THE EXISTING REDBLOODCELL FREEZING METHOD REQUIRES A 7000 ULTRALOW TEMPERATURE FREEZER AND A LABORIOUS THAWING PROCESS BLOODBANK EXECUTIVES SAY THESE OBSTACLES DISCOURAGE THEM FROM FREEZING MUCH BLOOD EXCEPT FOR RARE TYPES CRYOPHARM BELIEVES ITS APPROACH WILL FACILITATE FREEZING ESPECIALLY OF AUTOLOGOUS DEPOSITS MADE BY PEOPLE FOR THEIR OWN USE THESE HAVE INCREASED IN RECENT YEARS ALONG WITH CONCERNS ABOUT THE AIDS VIRUS AND OTHER CONTAMINANTS IT TURNS OUT THAT CERTAIN CARBOHYDRATES CAN BE SUBSTITUTED FOR THE WATER MOLECULES INSIDE AND OUTSIDE CELL MEMBRANES THAT MAINTAIN THE CELLS' STRUCTURAL INTEGRITY CRYOPHARM HOPES THAT WITH ITS SYSTEM BLOOD CELLS CAN BE STORED FOR MANY YEARS EVEN IN A STANDARD HOUSEHOLD FREEZER SUCH AS THE ONE AT THE LAB HERE BEFORE BEING READIED FOR TRANSFUSION INTO A PATIENT PREPARING THE BAGGED BLOOD ONCE IT HAS THAWED SEEMS A RELATIVELY SIMPLE PROCEDURE CRYOPHARM RESEARCHER SHARON CRANDALL INSERTS A REEDTHIN TUBE INTO THE BAG HOOKING IT TO A CENTRIFUGE MACHINE THE RED CELLS SLOWLY DRAIN INTO THE BIG MACHINE WHICH SPINS THEM THROUGH FOUR CYCLES WITH TWO PURIFICATION SOLUTIONS FIFTEEN MINUTES LATER THE RED CELLS REMAIN IN A BAG INSIDE THE MACHINE WHILE CRYOPHARM'S PRESERVATIVE SOLUTION AND OTHER RESIDUAL FLUIDS ARE COLLECTED IN A DISPOSABLE CONTAINER THE PURIFIED BLOOD CAN BE TRANSFUSED IMMEDIATELY INTO A PATIENT OR KEPT IN A REFRIGERATOR FOR 24 HOURS WHILE COMMERCIAL BLOOD BANKERS SAY THIS APPROACH SOUNDS PROMISING THEY ARE MORE EXCITED BY THE POSSIBILITY OF PROLONGING THE USEFULNESS OF PLATELETS WHICH TYPICALLY ARE LIMITED TO A LIFE OF FIVE DAYS AT ROOM TEMPERATURE DEMAND FOR THIS FRAGILE COMMODITY IS RISING ALONG WITH THE SPREAD OF AGGRESSIVE CHEMOTHERAPY AND OTHER NOVEL CANCER TREATMENTS AND SOME BLOOD BANKS FEAR SHORTAGES ESPECIALLY OVER LONG HOLIDAY WEEKENDS THE EXISTING TECHNIQUE FOR FREEZING PLATELETS EMPLOYED AS A LAST RESORT USES AN ADDITIVE CALLED DIMETHYL SULFOXIDE OR DMSO BESIDES KILLING HALF THE CELLS DMSO PRODUCES UNPLEASANT SIDE EFFECTS IN PATIENTS FRED HUTCHINSON CENTER'S DR ROWLEY SAYS CHRISTINE M WILLIAMSHUGHES WHO HEADS UP PLATELET RESEARCH AT CRYOPHARM POINTS INSIDE A GLASS INCUBATOR AT A POUCH FILLED WITH MILKY WHITE LIQUID THE BAG SITS ON A SHIMMYING MECHANICAL RACK THAT KEEPS THE PLATELET SOLUTION SLOSHING A CONSTANT AGITATION THAT IS NEEDED TO KEEP THE TINY CELLS FROM FORMING INTO TINY CLUMPS CRYOPHARM'S CRYOPRESERVATIVE FLUID WHEN COMBINED WITH THE PLATELETS BEFORE FREEZING ALLOWS THEM TO BE STORED FOR MONTHS DR WILLIAMSHUGHES SAYS AFTER A QUICK SOAK TO THAW THE CELLS THEY ARE READY TO BE USED CRYOPHARM SAYS ITS TESTS SHOW THAT MORE THAN 75 OF THE CELLS ARE PRESERVED DR GOODRICH SAYS CRYOPHARM'S PLATELET AND REDCELL WORK EVOLVED FROM RESEARCH INTO CELL MEMBRANES THAT HE DID IN THE MID1980S AT THE SUGGESTION OF HIS CALTECH THESIS ADVISER THE TWO PHYSICAL CHEMISTS WERE INTRIGUED BY SOME UNIVERSITY OF CALIFORNIA AT DAVIS STUDIES OF MICROORGANISMS THAT SURVIVE IN HARSH DRY ENVIRONMENTS INCLUDING WATER BEARS TINY ANTLIKE DESERT CREATURES THAT LIVE IN SUSPENDED ANIMATION UNTIL THEY COME INTO CONTACT WITH WATER WHEN THEY SUDDENLY REVIVE AND CRAWL AWAY DR GOODRICH ALSO SAYS HE BORROWED IDEAS FROM FOOD SCIENTISTS WHO FIGURED OUT HOW TO KEEP A CANDY BAR ON A HOT SHELF FROM TURNING INTO A PUDDLE OF CHOCOLATE ALL THE EQUATIONS DESCRIBING THE BEHAVIOR OF MATERIALS AT HIGH TEMPERATURES ARE EQUALLY APPLICABLE ON THE LOW TEMPERATURE SIDE HE SAYS JUST AS THE CANDY MAKER'S PRESERVATIVES KEEP THE CHOCOLATE BAR FROM MELTING IN THE HEAT CRYOPHARM'S SOLUTIONS ARE DESIGNED TO PROTECT LIVING CELLS FROM DEGRADING WHEN THEY FREEZE WITH 100000 IN SEED MONEY FROM MAJORITY SHAREHOLDER EM WARBURG PINCUS & CO THE NEW YORK VENTURECAPITAL GROUP DR GOODRICH AND CRYOPHARM BEGAN EXPERIMENTING WITH FREEZEDRYING RED BLOOD CELLS THE WORK ALSO ATTRACTED FUNDING FROM THE MILITARY IMAGINE TAKING A LIVING CELL AND REDUCING IT TO DRY POWDER AND THEN ADDING WATER AND HAVING IT COME BACK TO LIFE IT IS A LITTLE BIT LIKE RIP VAN WINKLE SAYS JOHN BALDESCHWIELER THE CALTECH CHEMIST WHO WAS DR GOODRICH'S MENTOR BY EARLY 1992 CRYOPHARM EXECUTIVES FELT THE COMPANY WAS FAR ENOUGH ALONG IN ITS RESEARCH TO TEST THE COMMERCIAL WATERS FOR ITS PRODUCTS CRYOPHARM INVITED LEADING BLOODBANK PROFESSIONALS TO SEVERAL SMALL GROUP MEETINGS IN SAN FRANCISCO CHICAGO AND OTHER CITIES BUT THE EXPERTS STEERED US AWAY FROM THE FREEZEDRYING APPROACH MAINLY BECAUSE OF ITS HIGH MANUFACTURING COST SAYS CARL E BROOKS PRESIDENT AND CHIEF EXECUTIVE OFFICER THEY SAW THE GREATEST COMMERCIAL OPPORTUNITY IN PLATELETS BECAUSE OF NEW EMERGING CANCER THERAPIES TOTAL PLATELET TRANSFUSIONS ROSE TO 73 MILLION UNITS IN 1989 NEARLY 14 OVER 1987 ACCORDING TO A RECENT STUDY BY CONTRAST REDCELL TRANSFUSIONS OVER THAT PERIOD EDGED UP ONLY 4 TO ABOUT 121 MILLION UNITS CRYOPHARM LACKING FUNDS TO TAKE ITS RESEARCH THROUGH THE NEXT STAGE SIGNED A PARTNERSHIP AGREEMENT LAST MONTH WITH A DIVISION OF COBE LABORATORIES INC COBE A DENVERBASED UNIT OF SWEDEN'S GAMBRO AB IS PURCHASING CRYOPHARM'S TECHNOLOGY FOR 46 MILLION PLUS RESEARCH SUPPORT FOR CRYOPHARM THROUGH AT LEAST 1994 THE PARTNERS HOPE TO BEGIN HUMAN TESTING OF CRYOPHARM'S PLATELET SOLUTION EARLY NEXT YEAR WITH GOVERNMENT APPROVAL FOR COMMERCIAL SALE POSSIBLE IN 1995 DEVELOPMENT OF SOLUTIONS FOR THE FREEZING OF RED BLOOD CELLS BONE MARROW AND PERIPHERAL BLOOD CELLS ARE EXPECTED TO FOLLOW 9309160091 930916 FOREIGN IMPORTS SOMETIMES TRAVEL ON A COSMIC PLANE JOB SEEKERS FROM OTHER LANDS PSYCHICS INCLUDED FIND A WINDFALL IN A US LAW BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL THE REV HUGH SAMUEL SILBERSTEIN A MINISTER AT THE INNER POWER AWARENESS CENTER PUTS ON TWO PSYCHIC FAIRS EVERY YEAR IN UPSTATE NEW YORK FOR THE LAST 12 YEARS MANY OF HIS SEERS HAVE CROSSED OVER FROM A HIGHER REALM CANADA THIS ISN'T AN EXERCISE IN PARANORMAL CROSSBORDER HARMONY FOR WHILE IT MAY BE A SURPRISE TO MANY US NEW AGERS AMERICA OR AT LEAST MR SILBERSTEIN'S PART OF IT SEEMS TO HAVE A PSYCHIC SHORTAGE LUCKILY UNCLE SAM HAS FORESEEN A REMEDY FOR THIS UNDER AN ARCANE PROGRAM ALLOWING BUSINESSES TO IMPORT TEMPORARY FOREIGN WORKERS IF DOMESTIC ONES CAN'T BE FOUND MR SILBERSTEIN IS ABLE TO BRING IN HIS PALMREADING CANADIANS OF COURSE WE'RE A UNIQUE BUSINESS HE ADDS ACTUALLY NOT JUDGING BY THE FOREIGN JOB SEEKERS APPROVED UNDER THE PROGRAM KNOWN AS H2B FOR THE VISA IT GRANTS THE COUNTRY FACES A MYSTIFYING SHORTAGE IN A BEWILDERING VARIETY OF PROFESSIONS AMONG THEM FISHEGG ATTENDANTS COACHES SINGERS CIRCUS AERIALISTS TRAVEL GUIDES SEAFOOD PROCESSORS AND RIDE SUPERVISORS ABOUT TWOTHIRDS OF SOME 3000 SUCH REQUESTS FOR FOREIGN TEMPS ARE APPROVED EACH YEAR UNDER THE PROGRAM BEGUN IN 1986 H2B COVERS NONFARM WORKERS A COMPANION PROGRAM H2A GRANTS TEMPORARY VISAS TO FOREIGN AGRICULTURAL WORKERS RUN BY THE LABOR DEPARTMENT H2B HAS TWO MAJOR REQUIREMENTS EMPLOYERS IN A FORMAL APPLICATION MUST PERSUASIVELY EXPLAIN THE PARTICULAR SHORTAGE AND MUST ADVERTISE FOR AMERICAN JOB SEEKERS FOR AT LEAST THREE DAYS IF NO QUALIFIED US CITIZENS STEP FORWARD FOREIGN WORKERS CAN BE HIRED CRITICS NOTABLY LABOR UNIONS CONTEND THE PROGRAM IS A RUSE THAT ALLOWS EMPLOYERS TO DENY WORK TO QUALIFIED AMERICANS IN FAVOR OF FOREIGNERS USUALLY OF THE LOWPAID VARIETY CONSIDER THAT LAST YEAR ALONE H2B ALLOWED AMERICAN MOVIE STUDIOS TO IMPORT 650 DIRECTORS OF PHOTOGRAPHY MOST EARN SALARIES MUCH LOWER THAN THEIR AMERICAN COUNTERPARTS IT'S A FIASCO CONTENDS MARKLEY ROBERTS AN ECONOMIST WITH THE AFLCIO IN WASHINGTON BUT MANY US INDUSTRIES CONTEND H2B FILLS A LEGITIMATE NEED ONE SUCH SECTOR IS THE UPSCALE SIDE OF THE US FOOD INDUSTRY JUDGING BY H2B STATISTICS THERE SEEMS TO BE AN APPALLING SHORTAGE OF AMERICAN CHEFS WAITERS AND OTHERS WHO CAN IMPART AN OLD WORLD JE NE SAIS QUOI TO RESTAURANTS AND OTHER ENTERPRISES DISHING OUT FOREIGN FOOD THE LABOR DEPARTMENT LAST YEAR APPROVED THE IMPORTATION OF SEVEN HEAD BAKERS 26 CHEFS TWO PASTRY CHEFS THREE SOUSCHEFS 56 PLAIN COOKS AND 196 KITCHEN HELPERS BUT SOME CASES INDICATE THAT EMPLOYERS SOMETIMES FIND A FOREIGNER THEY WANT TO HIRE THEN SIMPLY CREATE A JOB DESCRIPTION THAT MAKES IT DIFFICULT FOR AMERICAN APPLICANTS TO COMPETE CONSIDER THE CASE OF PEACHTREE CLUB ASSOCIATES INC AN ATLANTA ENGLISHSTYLE DINING CLUB PEACHTREE'S PRESIDENT JOHN R DECKER CONTENDS THAT THE VERY NATURE OF HIS CLUB CRIED OUT FOR AN ENGLISHSTYLE MANAGER HE FOUND ONE IN CHRIS SWINN A BRITON WHO HAD RUN A SIMILAR CLUB IN ENGLAND AND WHOSE MASTERY AT PASSING THE PORT WAS AS AUTHENTIC AS HIS BRITISH ACCENT MR SWINN RECOMMENDED TO MR DECKER BY CONSULTANTS SAYS HE WAS OFFERED THE JOB ASSUMING HIS H2B APPLICATION WAS APPROVED SO MR DECKER ADVERTISED FOR A WINE STEWARD WHO COULD TRAIN THE CLUB'S STAFF IN THE PRESTIGIOUS ENGLISH APPROACH TO SERVICE AND COOKING IE PASSING THE PORT' PRESENTATION OF PASTRY DELICACIES AND BREWING OF TEA IN HIS APPLICATION HE ALSO NOTED THAT UNDERSTANDING OF THESE FORMAL BRITISH RITUALS OF DINING ARE ESSENTIAL ELEMENTS IN THE HOSPITALITY AND HERITAGE OF AFTERDINNER CONVIVIALITY PERHAPS UNSURPRISINGLY MR DECKER WASN'T ABLE TO FIND ANY AMERICANS BRITISH ENOUGH FOR THE 47000 A YEAR JOB TWO US APPLICANTS HAD PLENTY OF EXPERIENCE BUT FLUNKED PORTPASSING MR DECKER SAYS THERE WAS NOTHING UNTOWARD IN THIS AND MR SWINN GOT HIS VISA HAPPILY MOVING TO ATLANTA WHERE HE HAS INSTILLED BRITISH AMBIENCE TO THE PEACHTREE CLUB EVER SINCE LIKE MOST H2B VISAS MR SWINN'S EXPIRED AFTER A YEAR BUT HE GOT LUCKY WINNING AN IMMIGRATION AND NATURALIZATION SERVICE LOTTERY FOR A PERMANENT GREEN CARD THAT ALLOWS HIM TO STAY IN THE COUNTRY GENERALLY H2B MAKES IT EASY FOR WORLDCLASS ATHLETES ROCK STARS AND NOBEL PRIZE WINNERS TO GET TEMPORARY US VISAS BUT IT IS LESS CHARITABLE TO ATHLETIC MEDIOCRITY CONSIDER WHAT FIGHT PROMOTER DAN DUVA HAD TO GO THROUGH LAST YEAR TO PUT TWO LITTLEKNOWN CANADIANS ON A BOXING CARD IN VIRGINIA BEACH VA ESSENTIALLY MR DUVA WAS REQUIRED TO OFFER THE MATCH TO AMERICANS FIRST THEN HOPE THAT NONE WANTED IT PONDERING THIS HE WENT TO RAY D'UVA A NEWARK NJ IMMIGRATION LAWYER SPECIALIZING IN BRINGING IN FOREIGN ATHLETES THE SOLUTION MR DUVA WAS REQUIRED BY THE LABOR DEPARTMENT TO PLACE A TINY AD IN THE NEW YORK TIMES'S CLASSIFIED SECTION THE AD SOUGHT TWO BOXERS CAPABLE OF ENGAGING IN PRO BOXING MATCHES OF UP TO TEN ROUNDS NOT MANY AMERICAN BOXERS LOOK FOR WORK IN THE TIMES CLASSIFIEDS AND NONE APPLIED MR DUVA GOT HIS CANADIANS THE LABOR DEPARTMENT DOES DRAW THE LINE IN SOME CASES WHERE IT IS BLATANTLY OBVIOUS THAT A JOB IS BEING ENGINEERED FOR A FOREIGNER LAST SUMMER THE CALIFORNIA JUNIOR LIFEGUARD PROGRAM IN HUNTINGTON BEACH WANTED TO HIRE A YOUNG WOMAN FROM NEW ZEALAND AS AN INSTRUCTOR THE OFFICIAL JUSTIFICATION THAT THERE WAS A LIFEGUARD SHORTAGE IN THIS BEACHCRAZY PART OF SOUTHERN CALIFORNIA THIS RAISED ABOUT AS MANY EYEBROWS AS DID THE JOB DESCRIPTION AS ADVERTISED THE JOB REQUIRED SOMEONE WITH AT LEAST FIVE YEARS EXPERIENCE AN AUSTRALIAN OR NEW ZEALAND LIFEGUARDING CERTIFICATE OR EQUIVALENT CERTIFICATION AS AN EMERGENCY MEDICAL TECHNICIAN AND THE ABILITY TO SWIM 1000 METERS IN 15 MINUTES AND RUN ONE KILOMETER IN FOUR MINUTES NOT COINCIDENTALLY THOSE QUALIFICATIONS FIT THE WOMAN'S RESUME TO A T AFTER THE LABOR DEPARTMENT REJECTED THE APPLICANT A QUALIFIED AMERICAN LIFEGUARD MYSTERIOUSLY MATERIALIZED HERBERT WHITE THE PROGRAM DIRECTOR ADMITS HE SIMPLY WANTED TO ADD A LITTLE VARIETY TO THE PROGRAM TO HAVE PEOPLE FROM OTHER COUNTRIES REALLY ENRICHES THE PROGRAM HE SAYS AS IN THE AGRICULTURAL SECTOR MANY H2B IMPORTS ARE TEMPS WHO DO JOBS THAT AMERICAN'S WANT NOTHING TO DO WITH THE WATERVILLE CO OF WATERVILLE VALLEY NH TURNED TO FOREIGN LABOR AFTER BEING UNABLE TO FIND AMERICANS TO HELP SKIERS ON AND OFF LIFT CHAIRS FOR 550 AN HOUR THE ONLY REQUIREMENT WAS TO BE AT LEAST 18 YEARS OLD IT'S COLD SAYS GENERAL MANAGER BOB ASHTON OF THE SEASONAL JOB IT'S JUST NOT SOMETHING YOU WANT TO DO ON A LONGTERM BASIS SIMILARLY PAUL BAUGHER SKI PATROL DIRECTOR AT CRYSTAL MOUNTAIN RESORT IN WASHINGTON STATE HAD A HARD TIME FINDING AMERICANS WHO WANTED TO DETONATE AVALANCHE AREAS WITH DYNAMITE AT 730 AN HOUR HE TURNED TO NEW ZEALANDERS INSTEAD THE JOB IS EXCITING BUT THE WAGES AREN'T APPEALING SAYS MR BAUGHER A PIZZA DRIVER CAN GET EIGHT BUCKS AN HOUR IN TIPS 9309160090 930916 PEPPERAND SALT THEY HUDDLE IN THE WINDY DRAFT WHO STAND OUT 'CAUSE THEY CAN'T STOP SMOKING WHEN I'VE BEEN PUT ON HOLD THE POINT OF NO RETURN 9309160089 930916 POLITICS & POLICY WHITES STILL EARN MORE LIVE LONGER THAN BLACKS WASHINGTON WHITE AMERICANS CONTINUE TO LIVE LONGER AND EARN MORE THAN BLACKS ACCORDING TO TWO GOVERNMENT REPORTS THOUGH THE OVERALL LIFE EXPECTANCY FOR AMERICANS INCREASED TO 754 YEARS FROM 737 BETWEEN 1980 AND 1990 WHITES HAD A BIGGER GAIN THAN BLACKS DURING THAT TIME THE LIFE EXPECTANCY FOR WHITES GREW TO 761 YEARS AND TO 691 YEARS FOR BLACKS ACCORDING TO A DEPARTMENT OF HEALTH AND HUMAN SERVICES REPORT SEPARATELY A CENSUS BUREAU REPORT SAID THAT FOR 1991 WHITE COLLEGE GRADUATES EARNED ON AVERAGE 6600 MORE THAN BLACK COLLEGE GRADUATES IN SIMILAR JOBS IN RELEASING THE REPORT ON NATIONAL HEALTH TRENDS DONNA SHALALA SECRETARY OF HEALTH AND HUMAN SERVICES TOOK THE OPPORTUNITY TO ARGUE FOR HEALTHCARE REFORM SHE SAID THAT ALTHOUGH SIGNIFICANT PROGRESS IS BEING MADE AGAINST CHRONIC DISEASE AND PREMATURE DEATH THE NATION STILL FALLS SHORT OF GOALS TO REDUCE DISPARITIES AMONG RACIAL AND ETHNIC GROUPS MANY AMERICANS CAN'T AFFORD OR CAN'T OBTAIN THE CARE THEY NEED TO PREVENT ILLNESS AND MAINTAIN GOOD HEALTH SHE SAID 9309160088 930916 FINANCING BUSINESS TRIDENT NGL HOLDING INC TRIDENT NGL HOLDING INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE INITIAL PUBLIC OFFERING OF FOUR MILLION COMMON SHARES AT 25 TO 28 APIECE THE NATURAL GAS CONCERN BASED IN THE WOODLANDS TEXAS SAID THAT ANTICIPATED PROCEEDS OF ABOUT 100 MILLION WILL BE USED TO REDUCE BANK DEBT LEAD UNDERWRITER IS DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9309160087 930916 BUSINESS BRIEF CABLETRON SYSTEMS INC COMPUTER NETWORKING FIRM SETTLES SUIT OVER STATE TAXES CABLETRON SYSTEMS INC SETTLED A LAWSUIT WITH NEW HAMPSHIRE AND WILL PAY THE STATE 118 MILLION IN BACK TAXES UNDER TERMS OF THE AGREEMENT THE SUIT FILED IN 1991 ALLEGED THAT THE STATE'S BUSINESS PROFITS TAX WAS UNCONSTITUTIONAL AND UNFAIRLY DISCRIMINATED AGAINST PUBLICLY HELD NEW HAMPSHIRE COMPANIES CRAIG BENSON CHAIRMAN OF THE ROCHESTER NH COMPUTER NETWORKING CONCERN SAID THE SETTLEMENT WAS IN RESPONSE TO RECENTLY ENACTED LEGISLATION WHICH REDUCES THE BUSINESS PROFITS TAX TO 7 FROM 8 UNDER THE MEASURE NEW FORMS OF TAXATION WILL BE APPLIED TO BUSINESSES THE COMPANY SAID THE AMOUNT IN TAXES HAD BEEN HELD IN ESCROW SINCE THE SUIT WAS FILED ACCRUED INTEREST ALSO WILL BE TURNED OVER TO THE STATE CABLETRON SAID 9309160086 930915 THE BATTLE OVER NAFTA WHAT IS NAFTA HERE ARE THE MAJOR ELEMENTS OF THE FIVEVOLUME NORTH AMERICAN FREE TRADE AGREEMENT TARIFFS & QUOTAS US AND MEXICAN TARIFFS AND QUOTAS WOULD BE ELIMINATED ON IMPORTS OF AGRICULTURAL AND MANUFACTURED PRODUCTS MANY OVER THE NEXT FEW YEARS BUT SOME OVER 15 YEARS TARIFFS COULD BE REIMPOSED TEMPORARILY IF IMPORTS SURGE RULES OF ORIGIN GOODS MADE WITH MATERIALS OR LABOR FROM OUTSIDE NORTH AMERICA WOULD QUALIFY FOR NAFTA TREATMENT ONLY IF THEY UNDERGO SUBSTANTIAL TRANSFORMATION WITHIN THE US CANADA OR MEXICO AUTOS ELIMINATION OF TARIFFS APPLIES TO AUTOS ONLY IF 625 OF THE COST 50 FOR THE FIRST FOUR YEARS 56 FOR THE SECOND FOUR YEARS REPRESENTS NORTH AMERICAN MATERIALS OR LABOR LIMITS ON IMPORTS OF FOREIGNMADE TRUCKS TO MEXICO WOULD BE LIFTED IMMEDIATELY AFTER 10 YEARS US PRODUCERS NO LONGER WOULD HAVE TO PRODUCE IN MEXICO TO SELL THERE TEXTILES & APPAREL STRICT RULES WOULD ELIMINATE TARIFFS ONLY FOR GOODS MADE FROM NORTH AMERICANSPUN YARN OR FROM FABRIC MADE FROM NORTH AMERICAN FIBERS QUOTAS COULD BE REIMPOSED TEMPORARILY IF IMPORTS CAUSE SERIOUS DAMAGE TO INDUSTRY AGRICULTURE MANY TARIFFS AND QUOTAS WOULD BE ELIMINATED IMMEDIATELY BUT THOSE ON POLITICALLY SENSITIVE GOODS SUCH AS US CORN SHIPMENTS TO MEXICO AND MEXICAN SHIPMENTS OF PEANUTS SUGAR AND ORANGE JUICE TO US WOULD BE LIFTED OVER 15 YEARS TRANSPORTATION LIMITS ON TRUCKERS CARRYING CARGO ACROSS THE BORDERS WOULD BE LIFTED BY END OF 1999 GOVERNMENT PROCUREMENT MAJOR GOVERNMENT PURCHASES WOULD BE OPEN TO FIRMS FROM ALL THREE COUNTRIES WITH A 10YEAR PHASEOUT OF MEXICAN LIMITS FOR GOVERNMENT ENERGY COMPANIES INVESTMENT FOREIGN INVESTORS IN GENERAL WOULD BE TREATED NO LESS FAVORABLY THAN DOMESTIC INVESTORS WITH SEVERAL EXCEPTIONS AND VARYING PHASEIN PERIODS STRICT LIMITS WOULD APPLY TO MEXICO'S ENERGY AND RAIL INDUSTRIES US AIRLINES AND RADIO COMMUNICATIONS INDUSTRIES AND CANADA'S CULTURAL INDUSTRIES MEXICO CONTINUES TO RESTRICT FOREIGN OWNERSHIP OF CERTAIN LAND ENERGY MEXICO OPENS MOST PETROCHEMICAL AND ELECTRIC GENERATION SECTORS TO FOREIGN INVESTMENT BUT CONTINUES TO FORBID FOREIGN INVESTMENT IN OIL EXPLORATION PRODUCTION AND REFINING FINANCIAL SERVICES LIMITS ON FOREIGN INVESTMENT IN MEXICAN BANKS INSURANCE COMPANIES AND BROKERAGE FIRMS WOULD BE LIFTED OVER THE NEXT SEVEN TO 15 YEARS DISPUTES FIVEMEMBER PANELS OF PRIVATE TRADE AND LEGAL EXPERTS WOULD RESOLVE TRADE AND INVESTMENT DISPUTES APPEALS WOULD BE REFERRED TO PANELS OF JUDGES OR FORMER JUDGES ENVIRONMENTAL & LABOR SIDE AGREEMENTS WOULD CREATE TRINATIONAL PANELS TO MONITOR ENFORCEMENT OF ENVIRONMENTAL AND LABOR LAWS IN EACH COUNTRY AND EFFECTIVELY TO IMPOSE FINES IF NECESSARY 9309160085 930916 POLITICS & PEOPLE ENLIST JIMMY CARTER AS SPECIAL MIDEAST ENVOY BY ALBERT R HUNT ALBERT R HUNT'S COLUMN POLITICS & PEOPLE BEGINS TODAY MR HUNT IS EXECUTIVE WASHINGTON EDITOR OF THE WALL STREET JOURNAL AND MODERATOR OF CNN'S CAPITAL GANG SINCE JOINING THE JOURNAL IN 1965 HE HAS WORKED AS A REPORTER IN NEW YORK BOSTON AND WASHINGTON AND JUST COMPLETED 10 YEARS AS THE PAPER'S WASHINGTON BUREAU CHIEF HIS COLUMN WILL APPEAR IN THIS SPACE EVERY THURSDAY THE BRILLIANT SUNSHINE OVER THE WHITE HOUSE'S MAJESTIC SOUTH LAWN PROVIDED THE PERFECT CLIMATE FOR THIS WEEK'S EXTRAORDINARY PEACE ACCORD BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION BUT LIKE THE WASHINGTON WEATHER THE MIDDLE EAST PEACE ACCORD FACES CLOUDIER DAYS IN THE MONTHS AHEAD THIS CREATES A DILEMMA FOR A CLINTON ADMINISTRATION WHOSE PLATE ALREADY IS FULL WITH HEALTH CARE A FREE TRADE PACT WITH MEXICO AND CANADA AND AN EFFORT TO REORGANIZE GOVERNMENT A MAJOR US PRESENCE IS ESSENTIAL TO FASHION A COMPREHENSIVE MIDEAST PEACE SETTLEMENT AND YET IT WOULD BE A DISTRACTION FOR BILL CLINTON WITH LITTLE DOMESTIC POLITICAL PAYOFF HERE'S ONE POSSIBLE SOLUTION ENLIST JIMMY CARTER EITHER AS A SPECIAL ENVOY FOR THE OVERALL PEACE PROCESS OR IF THAT'S TOO MUCH TO PLAY A ROLE IN OVERSEEING THE SYRIANISRAELI NEGOTIATIONS TO USE A FORMER PRESIDENT THIS WAY WOULD BE UNPRECEDENTED AND RAISES THREE SERIOUS QUESTIONS IS THERE A NEED FOR SOME SORT OF SPECIAL ENVOY OR ARRANGEMENTS IN THE MIDDLE EAST SHOULD THE CLINTON ADMINISTRATION CEDE SUCH IMPORTANT RESPONSIBILITIES TO AN OUTSIDER AND WOULD MR CARTER BE THE RIGHT PERSON THE ANSWER TO ALL THREE IS A QUALIFIED YES DESPITE THE DRAMATIC CHANGES OF RECENT WEEKS THIS WON'T BE A SHORT OR EASY PROCESS NOTHING IN THE MIDDLE EAST EVER IS IT TOOK SIX MONTHS AFTER CAMP DAVID TO HAMMER OUT THE ACTUAL PEACE TREATY AND THEN THREE YEARS TO IMPLEMENT IT THAT SORT OF TIMETABLE ISN'T UNREASONABLE HERE IF PEOPLE QUESTION THE ESSENTIAL ROLE OF THE US IN THIS PROCESS THEY NEED ONLY LOOK AT MONDAY'S EVENT PRESIDENT CLINTON PLAYED NO ROLE IN THIS AGREEMENT YET BOTH ISRAEL AND THE PLO JUMPED AT THE OPPORTUNITY TO SEAL IT AT THE WHITE HOUSE ONLY THE US HAS THE CREDIBILITY TO PLAY THE BROKERING AND COORDINATING ROLE IN THE ENSUING NEGOTIATIONS AND BE THE GUARANTOR OF ANY AGREEMENTS MOREOVER THIS UNDENIABLY HAS TO BE DONE AT A VERY HIGH LEVEL THE PARTIES NO DOUBT WOULD PREFER THE PRESIDENT AND THE SECRETARY OF STATE TO PLAY THAT ROLE THEREIN LIES THE PROBLEM FOR MR CLINTON OVER THE PAST DECADE AND A HALF EVEN STUNNING FOREIGN POLICY SUCCESSES HAVEN'T HELPED US PRESIDENTS POLITICALLY THE MOST DRAMATIC WERE THE CAMP DAVID PEACE ACCORDS THE TEARING DOWN OF THE BERLIN WALL AND COLLAPSE OF COMMUNISM AND THE PERSIAN GULF WAR BOTH PRESIDENTS WHO PRESIDED OVER THESE MOMENTOUS EVENTS WERE DEFEATED IN THE NEXT ELECTION AND AS DEMOCRATIC POLLSTER CELINDA LAKE NOTES MORE THAN JIMMY CARTER OR GEORGE BUSH BILL CLINTON WAS ELECTED TO PAY ATTENTION TO DOMESTIC ISSUES ALREADY THERE IS A SIMMERING FIGHT AT THE WHITE HOUSE BETWEEN THE HEALTH CARE BOOSTERS HILLARY CLINTON AND THE POLITICAL ADVISERS AND THE NORTH AMERICAN FREE TRADE AGREEMENT PROPONENTS ADMINISTRATION HEAVYWEIGHTS LLOYD BENTSEN WARREN CHRISTOPHER BOB RUBIN AND DAVID GERGEN OVER WHICH SHOULD BE THE PRESIDENT'S PRIORITY THE ANSWER IS THEY BOTH MUST BE BUT WITH TWO HUGE CONTROVERSIAL INITIATIVES THE PRESIDENT WILL HAVE PRECIOUS LITTLE TIME OR ENERGY TO BRING PEACE BETWEEN ISRAEL AND THE ARABS THUS FOR ALL OF MONDAY'S EUPHORIA THE MIDDLE EAST IS NOT A POLITICAL WINNER FOR THE PRESIDENT CERTAINLY SECRETARY OF STATE WARREN CHRISTOPHER IS AN IMMENSELY CAPABLE LAWYERNEGOTIATOR UNDER ANY ARRANGEMENT THE SECRETARY OF STATE WOULD OVERSEE THE PROCESS BUT THERE ARE QUESTIONS WHETHER HE'S THE RIGHT PERSON FOR THIS RELENTLESSLY ARDUOUS DAYTODAY TASK MORE IMPORTANT SECRETARY CHRISTOPHER HOPES TO PLAY A MAJOR ROLE ON BEHALF OF NAFTA IN THE SHORT RUN AND FOCUS ON ASIAN POLICY IN THE LONGER RUN THESE HOPES WOULD HAVE TO BE SIDETRACKED IF MOST OF HIS TIME IS DEVOTED TO THE MIDDLE EAST ANOTHER POSSIBLE SPECIAL ENVOY WOULD BE JIM BAKER BUT THIS WHITE HOUSE DAVID GERGEN ASIDE DOESN'T TRUST THE FORMER REPUBLICAN SECRETARY OF STATE TO BE SURE MR CARTER HAS SOME DECIDED NEGATIVES HE CAN SAY VERY UNDIPLOMATIC THINGS AND IN SOME CIRCLES IN BOTH ISRAEL AND HERE HE'S REMEMBERED MAINLY AS A WEAK PRESIDENT HE WAS BUT HE'S A GREAT EXPRESIDENT DASHING AROUND THE WORLD HELPING TO PROMOTE DEMOCRACY AND FREE ELECTIONS IN VARIOUS COUNTRIES AND MEDIATING SERIOUS DISPUTES IN OTHERS INDEED HE AND RICHARD NIXON ARE THE TWO BEST FORMER PRESIDENTS OF THE PAST QUARTER CENTURY MR NIXON OF COURSE IS NOW TOO OLD FOR ANY SPECIAL ASSIGNMENTS AND ALWAYS LACKED THE MORAL AUTHORITY MR CARTER IS A VERY VIGOROUS 68YEAROLD AND HAS MORAL AUTHORITY IN ABUNDANCE WOULD HE DO IT OF COURSE WITH A KEEN SENSE OF RELIGIOUS HISTORY NOT TO MENTION A DESIRE TO REHABILITATE HIS REPUTATION FURTHER HE COULDN'T SAY NO TO A CLINTON REQUEST ACTUALLY USING PRESIDENT CARTER IN THIS TYPE OF ROLE WAS CONSIDERED BY THE PRESIDENTELECT DURING THE TRANSITION LAST YEAR AT MINIMUM MR CARTER COULD OVERSEE THE ELECTIONS IN GAZA AND THE WEST BANK MORE BROADLY THOUGH HE MIGHT BE THE PERFECT BROKER FOR THE SYRIAN ISSUE PRESIDENT HAFEZ ASSAD CERTAINLY WILL WANT TO PLAY AN INSIDE POWER GAME IN ANY NEGOTIATIONS BUT JIMMY CARTER HAS A LONG AND GOOD RELATIONSHIP WITH THE SYRIAN DICTATOR AND WITH THE PRESTIGE OF BEING A FORMER PRESIDENT HE WOULD HAVE SUFFICIENT STANDING TO CONVINCE MR ASSAD THAT HE'S A FORMIDABLE SURROGATE FOR PRESIDENT INTON BUT NONE OF THIS WOULD WORK IF MR CARTER IS UNACCEPTABLE TO THE ISRAELIS WHO WOULD PREFER THE PRESIDENT OR SECRETARY OF STATE FOR ANY MAJOR ROLE CLEARLY IF THE HARDLINE LIKUD GOVERNMENT WERE STILL IN POWER THIS WOULD BE A NONSTARTER IT ALSO WOULD DRAW CRITICISM FROM RIGHTWING PROISRAEL SUPPORTERS IN THE US WHO CONSIDER MR CARTER A NAIVE ARABIST AND IN THE LATE 1970S YITZHAK RABIN NOW THE ISRAELI PRIME MINISTER AND JIMMY CARTER DIDN'T HIT IT OFF BUT LIKUD NO LONGER IS IN POWER AND THE COURAGEOUS ISRAELI PRIME MINISTER HAS ALREADY DISPLAYED REMARKABLE FLEXIBILITY FOR AN OLD WARRIOR INDEED IT'S UNTHINKABLE THAT THE ISRAELIS COULD TALK ABOUT TRUSTING YASSER ARAFAT AND NOT JIMMY CARTER 9309160084 930916 SPRINT INCREASES DISCOUNT ON ITS LONGDISTANCE PLAN NEW YORK SPRINT CORP IS SLASHING RATES ON ITS LONGDISTANCE DISCOUNT CALLING PLAN CALLED THE MOST THE WESTWOOD KAN COMPANY SAID THAT UNDER A NEW SIXMONTH PROMOTION CUSTOMERS SIGNING UP FOR THE PLAN WILL RECEIVE 50 OFF CALLS TO THE ONE NUMBER CALLED MOST OFTEN THAT'S 20 MORE THAN THE PLAN'S REGULAR DISCOUNT TO OUR KNOWLEDGE THIS IS NOW THE STEEPEST DISCOUNT THAT'S BEING OFFERED IN THE MARKET A SPOKESWOMAN SAID NOT RESPONDED ANGELA DUNLAP SENIOR VICE PRESIDENT OF CONSUMER MARKETING AT MCI COMMUNICATIONS CORP IN WASHINGTON DC OUR FRIENDS & FAMILY DISCOUNT PLAN IS FOREVER AND IT COVERS ANY NUMBER CALLED NOT JUST ONE AMERICAN TELEPHONE & TELEGRAPH CO DECLINED TO COMMENT SPRINT CUSTOMERS WHO SIGN UP WILL ALSO RECEIVE A 20 DISCOUNT ON CALLS TO ALL OTHER SPRINT CUSTOMERS IF THE PERSON CALLED MOST IS A SPRINT CUSTOMER THE DISCOUNT WILL BE 60 FOR INSTANCE A 5 CALL UNDER THE PLAN WOULD COST 2 SPRINT NOTED THAT THE OFFER WHICH RUNS UNTIL DEC 31 WILL BE GOOD FOR SIX MONTHS AFTER SIGNING UP FOR THE PLAN AFTER SIX MONTHS CUSTOMERS RECEIVE THE PLAN'S STANDARD DISCOUNTS 9309160083 930916 MONEY FUND YIELDS ARE MOSTLY UNCHANGED NEW YORK YIELDS ON TAXABLE MONEY MARKET MUTUAL FUNDS WERE GENERALLY UNCHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 267 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER ASSETS OF TAXABLE FUNDS INCREASED BY 396 BILLION TO 47435 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR 315 BILLION OF THE INFLOW WHILE INDIVIDUAL INVESTORS ADDED 813 MILLION FOUR ADDITIONAL TAXABLE FUNDS ARE NOW REPORTING TO THE NEWSLETTER WHICH BRINGS THE TOTAL TO 618 THESE NEWLY REPORTING FUNDS ACCOUNTED FOR APPROXIMATELY 400 MILLION OF THE ASSET INFLOW BOTH THE AVERAGE SEVENDAY AND 30DAY SIMPLE YIELDS ON TAXABLE FUNDS REMAINED AT 264 IN THE LATEST WEEK THE AVERAGE 30DAY COMPOUND YIELD ALSO REMAINED STEADY AT 268 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS STAYED AT 63 DAYS THE AVERAGE TAXFREE SEVENDAY COMPOUND YIELD EASED TO 191 FROM 198 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 298 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 316 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF 331 TAXEXEMPT FUNDS WHICH INCLUDES ONE NEWLY REPORTING FUND GREW BY 291 MILLION TO 10408 BILLION ACCORDING TO MONEY FUND REPORT THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY TWO DAYS TO 67 DAYS 9309160082 930916 FDIC TO CLOSE 15 OFFICES DISMISS 3300 EMPLOYEES WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP SAID IT WILL CLOSE 15 OFFICES AND DISMISS 3300 EMPLOYEES BY THE END OF 1996 IN A MOVE THAT REFLECTS THE BANKING INDUSTRY'S IMPROVING HEALTH THE FDIC WHICH IS RESPONSIBLE FOR TAKING OVER FAILED BANKS AND PAYING OFF DEPOSITORS HOPES THE REALIGNMENT OF ITS LIQUIDATION DIVISION WILL SAVE 430 MILLION BY THE END OF 1996 AND THEN 170 MILLION ANNUALLY THEREAFTER SAID AGENCY CHAIRMAN ANDREW HOVE JR THE NUMBER OF EMPLOYEES IN THE DIVISION WILL BE HALVED FROM THE CURRENT 6600 AND THE NUMBER OF OFFICES WILL BE REDUCED TO SEVEN FROM 22 THE ANNOUNCEMENT COMES AS COMMERCIAL BANKS' EARNINGS HAVE IMPROVED WITH RECORD PROFITS POSTED FOR THE FIRST HALF OF 1993 THE NUMBER OF BANK FAILURES HAS SHRUNK TO 34 SO FAR THIS YEAR COMPARED WITH 122 IN ALL OF 1992 THE LABOR UNION THAT REPRESENTS FDIC EMPLOYEES IS OPPOSING THE REALIGNMENT SAYING THE FDIC IS USING IT AS A SMOKESCREEN TO SHIFT WORK TO INDEPENDENT CONTRACTORS THE FDIC IS RUNNING A SHELL GAME IN EFFECT BY TELLING THE PUBLIC TO LOOK AT THE DOWNSIZING AS IT PULLS A FAST ONE BY CONTRACTING OUT SAID ROBERT TOBIAS PRESIDENT OF THE NATIONAL TREASURY EMPLOYEES UNION 9309160081 930916 YOUR MONEY MATTERS INVESTMENT DARTBOARD STOCK PROS BEAT DARTS THANKS TO SPRINT BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A QUARTET OF INVESTMENT PROFESSIONALS OUTPERFORMED A TOSS OF FOUR DARTS IN THIS NEWSPAPER'S MONTHLY STOCKPICKING CONTEST BUT THE PROS DIDN'T HAVE MUCH TO BRAG ABOUT INVESTORS WHO BOUGHT THE FOUR STOCKS TARGETED BY THE PROFESSIONAL STOCKPICKERS SIX MONTHS AGO WOULD HAVE MADE A MEASLY 03 FOR THE PERIOD AND THAT ALL BECAUSE OF ONE STOCK BUT FOR THE PERFORMANCE OF LONGDISTANCE PHONE COMPANY SPRINT CORP WHICH CLIMBED 276 DURING THE PERIOD THE PROFESSIONALS' PICKS WOULD HAVE LOST OUT TO CHANCE MEANWHILE THE DARTBOARD PORTFOLIO LOST 56 AND THE DOW JONES INDUSTRIAL AVERAGE GAINED 73 FOR THOSE KEEPING SCORE THE PROFESSIONALS HAVE WON 22 TIMES AND THE DARTS 17 TIMES IN A SERIES OF 39 OVERLAPPING SIXMONTH CONTESTS THE FIRSTPLACE AND SECONDPLACE WINNERS WERE INVITED BACK TO PICK ANOTHER STOCK AND TWO NEW CONTESTANTS JOIN THEM FOR THE NEXT SIX MONTHS THE CONTESTANTS HAVE ADOPTED SOME OF WALL STREET'S ORPHANS THREE OF THE PROFESSIONALS' FOUR PICKS BEST BUY CO TOKHEIM CORP AND CHEYENNE SOFTWARE INC ARE STOCKS THEIR BOOSTERS CLAIM ARE IGNORED BY WALL STREET IN FAVOR OF BIGGER NAMES IN THE SAME INDUSTRIES THE PERFORMANCE OF THOSE FOUR STOCKS DURING THE NEXT SIX MONTHS WILL BE MEASURED AGAINST THE FOUR STOCKS IN THE DARTBOARD PORTFOLIO TO GET THOSE STOCKS THIS NEWSPAPER'S STAFFERS FLING DARTS AT THE STOCK LISTINGS THE MONEY MANAGER WHO PICKED SPRINT BEFORE IT RAN AWAY FROM THE PACK WAS DOUGLAS RABORN HEAD OF RABORN & CO A DELRAY BEACH FLA MONEYMANAGEMENT FIRM MR RABORN IS NOW BULLISH ON BEST BUY A MINNEAPOLIS APPLIANCE AND ELECTRONICS RETAILER THAT HE SAYS UNDERPRICES THE COMPETITION AND OUTSELLS THEM WALL STREET HAS DISMISSED THE STOCK AS A METOO CIRCUIT CITY STORES INC PLAY HE SAYS AND HAVE PAID IT LITTLE ATTENTION BUT UNLIKE AT SOME OTHER RETAILERS BEST BUY SALESPEOPLE DON'T WORK ON COMMISSION AND THE WAREHOUSESTYLE OPERATIONS MEANS SHORT WAITS TO PICK UP MERCHANDISE HE FEELS BOTH OF THOSE FACTORS GIVE BEST BUY AN EDGE IN THE EYES OF CONSUMERS MR RABORN WHO SAYS HE IS SELLING WALMART STORES INC AND HOME DEPOT INC SHARES OUT OF HIS CLIENT ACCOUNTS TO STOCK UP ON BEST BUY SHARES NOTES THAT THE STOCK IS ALREADY ON THE MOVE WHEN HE FIRST STARTED ACCUMULATING IT EARLY LAST MONTH IT IS CURRENTLY HIS PORTFOLIOS' LARGEST HOLDING IT WAS ABOUT 29 A SHARE ADJUSTED FOR A TWOFORONE SPLIT SEPT 1 BUT THERE IS MORE STEAM IN THE STOCK HE SAYS AND IT COULD CLIMB TO 60 IN A YEAR IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BEST BUY SHARES ROSE 4375 OR 107 TO 4525 A SHARE THE RUNNERUP FOR THE PAST SIX MONTHS WAS JONATHAN STEINBERG CHIEF EXECUTIVE OF FINANCIAL DATA SYSTEMS INC THE PUBLISHER OF INDIVIDUAL INVESTOR MAGAZINE HE CAME IN SECOND EVEN THOUGH HIS STOCK PICK BI INC FINISHED FLAT HOWEVER MR STEINBERG HAS WON THE DARTBOARD CONTEST SEVERAL TIMES IN THE PAST HE SEES THE STOCK WHICH YESTERDAY FELL 375 CENTS A SHARE TO 33625 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING CLIMBING TO THE 50 TO 55 A SHARE RANGE DURING THE NEXT SIX MONTHS NEW CONTESTANT WARREN ISABELLE PORTFOLIO MANAGER OF THE PIONEER CAPITAL GROWTH FUND IN BOSTON IS BETTING ON TOKHEIM WHICH HE SAYS HAS BEEN WRONGLY GIVEN UP FOR DEAD BY WALL STREET TOKHEIM FORT WAYNE IND MANUFACTURES AND DISTRIBUTES HIGHTECH GAS PUMPS IT'S VERY HIGHLY LEVERAGED AT THE MOMENT BUT IT'S A TURNAROUND SITUATION MR ISABELLE SAYS NEW MANAGEMENT INSTALLED LAST YEAR IS SEEKING TO RESTRUCTURE THE DEBT HE SAYS MOREOVER HE IS COUNTING ON ENVIRONMENTAL REGULATIONS THAT ENCOURAGE GASSTATION OWNERS TO REDUCE ESCAPING GAS VAPORS TO ALSO SPUR SALES OF GAS PUMPS AND THE COMPANY HASN'T YET BEGUN TO EXPLOIT A GROWING INTERNATIONAL MARKET ACCORDING TO MR ISABELLE TOKHEIM'S PUMPS WHICH ALLOW CUSTOMERS TO PAY FOR THEIR GAS BY SWIPING THEIR CREDIT CARDS THROUGH A SCANNER SHOULD BENEFIT FROM AN INCREASE IN SALES MORE THAN SOME OF THEIR COMPETITORS SAYS MR ISABELLE THE STOCK CLOSED AT 1275 A SHARE UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR ISABELLE'S TARGET PRICE OVER SIX MONTHS IS 1450 TO 15 LAURIE GATHERUM CHIEF INVESTMENT STRATEGIST OF CHICAGO'S GEI FINANCIAL SERVICES INC SELECTS PRIMERICA CORP PARENT OF THE RECENTLY COMBINED BROKERAGE FIRM SMITH BARNEY SHEARSON AND OWNER OF A 27 STAKE IN INSURANCE COMPANY TRAVELERS CORP ITS CHIEF STRONG POINTS GOOD MANAGEMENT AND DIVERSIFICATION THE INVESTMENT IN TRAVELERS IS PAYING OFF HANDSOMELY SAYS MS GATHERUM EVERYONE KNOWS THE BOOM ON WALL STREET CAN'T LAST FOREVER AND OBVIOUSLY BLENDING SMITH BARNEY AND SHEARSON IS GOING TO REQUIRE A LOT OF PATIENCE SHE SAYS BUT THERE'S ENOUGH MOMENTUM IN INSURANCE AND CONSUMER FINANCE BUSINESSES SO THAT EVEN PROBLEMS IN THE INVESTMENT INDUSTRY WON'T SLOW ITS MOMENTUM IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PRIMERICA SHARES CLOSED YESTERDAY AT 47125 UP 625 CENTS FOR THE COMING SIX MONTHS THE PROS' PICKS WILL BE UP AGAINST A DARTBOARD PORTFOLIO CONSISTING OF MERRY LAND & INVESTMENT CO A REALESTATE INVESTMENT TRUST CAMBRIDGE BIOTECH CORP A MEDICAL PRODUCTS FIRM CALDOR CORP A RETAILER AND BANKER TRUSTMARK CORP 9309160080 930916 LEISURE & ARTS BOOKSHELF ISLAMOPHILES IN STRIPED PANTS BY DANIEL PIPES BY THE TIME THE REV BENJAMIN WEIR WAS TAKEN HOSTAGE ON THE STREETS OF BEIRUT IN APRIL 1984 HE HAD LIVED 31 YEARS IN LEBANON WHERE HE HAD TAUGHT THEOLOGY DONE CHARITABLE WORK AND SPREAD THE GOSPEL OVER THE DECADES HE AND HIS WIFE CAROL HAD COME TO IDENTIFY TOTALLY WITH THE MUSLIM LEBANESE WHILE AT THE SAME TIME DISASSOCIATING THEMSELVES COMPLETELY FROM THE US GOVERNMENT SO MUCH SO THEY DIDN'T EVEN KNOW THE NAME OF THE US AMBASSADOR IN BEIRUT REMARKABLY REV WEIR'S KIDNAPPING BY SHIITE EXTREMISTS DID NOTHING TO CHANGE THE COUPLE'S VIEWS DURING A MARCH 1985 MEETING WITH SECRETARY OF STATE GEORGE SHULTZ MRS WEIR EVEN DEFENDED THE SHIITES AS A SINCERE PEOPLE WITH SOME LEGITIMATE GRIEVANCES AGAINST THE UNITED STATES AND BLAMED HER HUSBAND'S ABDUCTION ON US FOREIGN POLICY WHILE THE WEIRS' DOGMATISM MAKES THEM SOMEWHAT ATYPICAL MANY AMERICAN TEACHERS MISSIONARIES AND AID WORKERS LIVING IN BEIRUT OR ELSEWHERE IN THE ARAB WORLD SHARE THEIR OUTLOOK UNBOUNDED SYMPATHY FOR MUSLIMS AND LOATHING FOR THE ACTIONS OF THE US GOVERNMENT IN THE ARABISTS THE ROMANCE OF AN AMERICAN ELITE THE FREE PRESS 336 PAGES 2495 ROBERT D KAPLAN ILLUMINATES TWO THINGS THAT THE WEIRS ARE HEIRS TO AN ENDURING TRADITION OF AMERICAN ARABISTS THAT GOES BACK OVER 150 YEARS AND THE TEMPERED VERSIONS OF THEIR VIEWPOINTS THAT HAVE INSPIRED MUCH OF AMERICAN DIPLOMACY SINCE WORLD WAR II THE TRADITION BEGAN IN 1827 WHEN ELI SMITH AN UPRIGHT YANKEE FROM YALE AND THE ANDOVER THEOLOGICAL SEMINARY TOOK OFF FOR THE MOUNTAINS OF LEBANON TO LEARN ARABIC WITHIN A FEW YEARS BEIRUT HAD BECOME THE CENTER OF A REMARKABLE MISSIONARY EFFORT BY AMERICAN PROTESTANTS UNLIKE THE BRITISH ARABISTS WHO ALWAYS RETAINED CONNECTIONS TO THEIR GOVERNMENT THESE AMERICANS CROSSED OCEANS AND BRAVED TERRIBLE ODDS WITHOUT PUBLIC SUPPORT TO BRING THEIR VISION OF CHRISTIANITY TO THE MIDDLE EAST AS MR KAPLAN NOTES MISSION WORK DEFINES THE AMERICAN ARABIST MUCH AS IMPERIALISM DEFINES THE BRITISH ARABIST WHEN IT BECAME APPARENT THAT FEW MIDDLE EASTERNERS WOULD ACCEPT THEIR FAITH ARABISTS TURNED TO WORKS FEEDING THE HUNGRY OR ESTABLISHING SCHOOLS NOTABLY THE AMERICAN UNIVERSITY OF BEIRUT WHICH MR KAPLAN DESCRIBES AS PROBABLY THE MOST INSPIRED IDEA IN THE HISTORY OF FOREIGN AID THEY HAD A VAST CULTURAL AND POLITICAL IMPACT ESPECIALLY IN PROMOTING ARABIC AS A MODERN LITERARY LANGUAGE AND IN INCUBATING THE IDEOLOGY OF PANARAB NATIONALISM THROUGH HIS READINGS AND INTERVIEWS MR KAPLAN BEAUTIFULLY EVOKES THIS EXOTIC OUTPOST AMERICAN ARABISTS PURSUED A STRIKINGLY NONAMERICAN WAY OF LIFE WITH HOUSEHOLDS FULL OF SERVANTS A PASSION FOR FOREIGN LANGUAGES AND A SINGULAR SENSE OF FAMILY CONTINUITY TALCOTT SEELYE US AMBASSADOR TO SYRIA UNTIL 1981 WAS FOR EXAMPLE THE FOURTH GENERATION IN HIS FAMILY TO SERVE IN THE LEVANT EVEN TODAY ONE DAUGHTER WORKS AS AN AIDE TO QUEEN NOOR OF JORDAN THIS IS THE ELITE AND THE ROMANCE OF MR KAPLAN'S SUBTITLE THE ARABIST IMPACT ON US POLICY DATES BACK TO THE LATE 1940S WHEN WASHINGTON FIRST GOT ACTIVELY INVOLVED IN THE MIDDLE EAST AND RELIED ON THEM FOR LANGUAGE SKILLS KNOWLEDGE OF LOCAL CULTURE USEFUL CONTACTS BUT AS THE ARABIST COHORT AT STATE BECAME INCREASINGLY DOMINANT IT ALSO BROUGHT STRANGE PREJUDICES TO THE GOVERNMENT REMINISCENT OF THE WEIRS' BOUND UP IN THEIR OWN SMALL WORLD ARABISTS LACKED THE IMAGINATION TO UNDERSTAND EITHER THE US OR AMERICAN INTERESTS ABROAD THEY LOVED A PRISTINE MIDDLE EAST AND REGRETTED ITS MODERNIZATION AGAINST ALL EVIDENCE ARABISTS QUIXOTICALLY SOUGHT TO SHOW THE ESSENTIAL HARMONY OF WESTERN AND ARABISLAMIC CULTURE THEY LOATHED MARONITES AND GREEK ORTHODOX CHRISTIANS THE FRENCH AND IRANIANS MOST OF ALL THEY HATED ISRAELIS WHOM THEY BLAMED AS MUCH FOR SPOILING THEIR IDYLL AS FOR THE PALESTINIANS' PLIGHT WASHINGTON'S INCREASING SUPPORT FOR ISRAEL CAUSED MANY ARABISTS TO SLIDE INTO ANTISEMITISM A DISASTROUS RECORD OF MAKING POLICY IS THE RESULT CARRYING OLD GRUDGES THEY REFUSED TO SEE ISRAEL'S VALUE TO THE UNITED STATES ON OCCASION THEY EVEN TOOK THE ARAB SIDE AGAINST THEIR OWN GOVERNMENT MOST NOTABLY IN 1973 WHEN JAMES AKINS THE AMBASSADOR TO SAUDI ARABIA ENCOURAGED OIL COMPANY EXECUTIVES TO HAMMER HOME THE SAUDI LINE IN WASHINGTON GIVEN A CHANCE TO RUN IRAQI POLICY THEY ARGUED FOR THE APPEASEMENT THAT ENCOURAGED SADDAM HUSSEIN TO INVADE KUWAIT FORTUNATELY THE ARABIST REIGN IN THE STATE DEPARTMENT IS NEARING ITS END SINCE JOSEPH SISCO TOOK OVER THE STATE DEPARTMENT'S MIDDLE EAST BUREAU IN 1969 PEACE PROCESSORS HAVE STEADILY GAINED AT THE ARABISTS' EXPENSE PEACE PROCESSORS BARELY KNOW ENOUGH ARABIC TO GIVE DIRECTIONS TO A TAXI DRIVER AND LOVE NOT ARAB CULTURE BUT POLICYMAKING FOR PLEASURE THEY DON'T READ TRAVEL BOOKS BY SANDMAD BRITISH EXPLORERS BUT INTEROFFICE MEMORANDA WHILE FAR LESS COLORFUL THAN THE ARABISTS THEY MAKE FAR BETTER POLICY THEIR DISPASSION AND GOODWILL MADE WASHINGTON THE MAIN FORCE BEHIND THE EGYPTIANISRAELI PEACE TREATY OF 1979 AND THE RECENT PLOISRAEL AGREEMENTS IN BRINGING THE ARABIST LEGACY TO LIGHT MR KAPLAN DOES MORE THAN RETRIEVE AN OBSCURE ASPECT OF AMERICAN LIFE BY PLUMBING THESE DEEP WATERS HE SHOWS WHY AMERICA'S CONNECTION TO THE MIDDLE EAST INSPIRES SUCH STRANGE VIEWS AND INTENSE PASSION MR PIPES IS THE DIRECTOR OF THE MIDDLE EAST COUNCIL A DIVISION OF THE FOREIGN POLICY RESEARCH INSTITUTE 9309160079 930916 FOREIGN EXCHANGE MARK SCORES GAINS AGAINST THE DOLLAR ON TALK OF BUYING BY EUROPEAN BANKS BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MARK RESUMED ITS MARCH HIGHER AGAINST THE DOLLAR AND OTHER CURRENCIES YESTERDAY BOOSTED BY TALK OF LARGE PURCHASES OF THE GERMAN CURRENCY BY EUROPEAN CENTRAL AND COMMERCIAL BANKS BUT THE DOLLAR GAINED A BIT AGAINST THE YEN AS PLAYERS DUMPED THE JAPANESE CURRENCY IN ANTICIPATION THAT A LARGE STIMULUS PACKAGE WOULD BE ANNOUNCED BY THE JAPANESE GOVERNMENT TODAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15955 MARKS DOWN FROM 16095 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10590 YEN UP A BIT FROM 10583 YEN STERLING WAS TRADING AT 15495 UP FROM 15460 ABOUT NOON ON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10485 YEN AND AT 15965 MARKS TRADERS SAID THE MARKET WAS PREOCCUPIED BY TALK THAT EUROPEAN COMMERCIAL BANKS SOLD ABOUT ONE BILLION DOLLARS FOR MARKS IN A REACTION TO THE RESTRUCTURING OF BRAZIL'S FOREIGN DEBT UNDER THE BRADY PLAN CURRENCY ANALYSTS EXPLAINED THAT AS PART OF THE PLAN TO CUT DEVELOPING COUNTRY DEBT LOANS FORMERLY DENOMINATED IN MARKS AND OTHER CURRENCIES ARE BEING RESTRUCTURED INTO DOLLARS LEAVING SEVERAL EUROPEAN COMMERCIAL BANKS WITH AN UNWANTED EXPOSURE TO THE US CURRENCY THUS TRADERS SAID THE BANKS WERE SELLING DOLLARS FOR MARKS YESTERDAY TO LOCK IN THEIR NEW DOLLAR EXPOSURE AT CURRENT MARKET RATES BUT TRADERS SAID THEY DIDN'T REALLY HAVE A CLEAR PICTURE OF THE EXTENT OF THE DOLLAR SALES AND SOME SAID THAT THEIR IMPORTANCE MAY HAVE BECOME EXAGGERATED AS THEY MADE THE ROUNDS IN THE MARKET'S RUMOR MILL THERE HAS BEEN A SIGNIFICANT REACTION TO THE RUMORS SAID JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK PLC IN NEW YORK TRADERS ALSO LINKED A RISE IN THE CANADIAN DOLLAR TO THE BRAZILIAN DEBT RESTRUCTURING REPORTING THAT LARGE US DOLLAR SALES BY CANADIAN COMMERCIAL BANKS HELPED PUSH THE US DOLLAR BELOW A KEY SUPPORT LEVEL AT 13175 CANADIAN DOLLARS TO AN INTRADAY LOW OF C13084 THE US DOLLAR LATER REBOUNDED TO TRADE LATE IN THE DAY AT C13126 WELL BELOW C13224 TUESDAY THE MARK ALSO GAINED SOME STRENGTH DURING THE DAY AS SOME EUROPEAN CENTRAL BANKS QUIETLY BOUGHT THE CURRENCY TO REPLENISH RESERVES SPENT DURING JULY'S CRISIS IN THE EUROPEAN EXCHANGE RATE MECHANISM MARKET WATCHERS IN EUROPE SAID THAT THE BANK OF FRANCE BOUGHT MARKS AT AROUND 34800 FRENCH FRANCS APPARENTLY AS PART OF AN EFFORT TO REPLACE THE MARKS IT SOLD DURING THE ERM CRISIS TO SUPPORT THE FRANC AS THE NORTH AMERICAN TRADING DAY OPENED THE MARK STRENGTHENED EVEN MORE AS DOLLAR TRADERS TOOK THEIR CUE FROM SHARP SELLOFFS IN THE US BOND AND STOCK MARKETS THE MARKET LOOKS AT THAT AND SEES OUTFLOWS OF CAPITAL FROM US DENOMINATED ASSETS SAID MR NELSON WHO NOTED THAT THE BEARISH OPEN CAUSED THE DOLLAR TO PLUNGE BELOW A KEY SUPPORT AT 15950 MARKS TO AN INTRADAY LOW OF 15860 MARKS BUT WHILE BOTH THE STOCK AND THE BOND MARKET STAGED IMPRESSIVE LATE REBOUNDS TO END HIGHER THE DOLLAR REMAINED WEAK FOR THE REST OF THE DAY MEANWHILE TRADERS SAID THE YEN WEAKENED AGAINST BOTH THE DOLLAR AND THE MARK AS TRADERS LOOKED AHEAD TO AN ANNOUNCEMENT FROM THE JAPANESE GOVERNMENT ON THE MEASURES IT WILL TAKE TO STIMULATE ITS STRUGGLING ECONOMY 9309160078 930916 INTERNATIONAL ITALY'S CIAMPI TAKES AN UNUSUAL TACK TOWARD AUSTERITY BY IGNORING POLITICS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME ITALIAN PRIME MINISTER CARLO CIAMPI CREATED AN UPROAR OVER THE WEEKEND WHEN HE ANNOUNCED A TOUGH 1994 AUSTERITY BUDGET SLASHING BLOATED STATE SPENDING AND ATTACKING SPIRALING PUBLIC DEBT GROWTH WHAT'S MORE MR CIAMPI AND HIS CABINET FINISHED THE PLAN WITHOUT ONCE CONSULTING THE POLITICAL PARTIES IN HIS GOVERNING COALITION THEY READ ABOUT IT IN THE PAPERS SAYS THE FORMER CENTRAL BANK CHIEF WHO WAS APPOINTED ITALY'S FIRST NONPOLITICAL PREMIER LAST APRIL IT'S NOT THAT I WANTED TO OFFEND THE PARTIES BUT I WORK HERE IN THE SAME MANNER I WORKED AT THE BANK OF ITALYWITHOUT THE DISTRACTIONS OF POLITICAL ALCHEMY IN ITALY WHERE A STATEDOMINATED ECONOMY HAS BEEN DIVIDED UP BY A COZY ALLIANCE OF POLITICAL PARTIES FOR NEARLY 50 YEARS NOT ONLY MR CIAMPI'S BUDGET BUT HIS VERY PRESENCE IS NOTHING SHORT OF REVOLUTIONARY THE 72YEAROLD FORMER BANKER WHO SPENT HIS CAREER AS A HARSH CRITIC OF PROFLIGATE GOVERNMENT SPENDING WAS CALLED IN AS A CRISIS MANAGER HIS MANDATE IS TO SUPERVISE POLITICAL AND ECONOMIC REFORM THE NATION'S MASSIVE CORRUPTION SCANDAL HAS DISCREDITED THE POLITICAL PARTIES ITS DETERIORATING FINANCIAL CONDITION FORCED THE LIRA OUT OF THE EUROPEAN MONETARY SYSTEM A YEAR AGO DESPITE THE UPHEAVAL OF THE LAST 18 MONTHS THIS PROFOUND TRANSFORMATION IS PROCEEDING IN A DEMOCRATIC AND IN A PEACEFUL MANNER MR CIAMPI SAID IN A 90MINUTE INTERVIEW BEFORE LEAVING FOR WASHINGTON FOR HIS FIRST MEETING WITH PRESIDENT CLINTON TOMORROW MR CIAMPI'S GOVERNMENT IS AN INTERIM ONE BUT ITS LEGACY IS LIKELY TO ENDURE TOGETHER WITH MEASURES ADOPTED BY THE PREVIOUS GOVERNMENT OF GIULIANO AMATO MR CIAMPI'S TEAM HAS BEGUN THE PAINFUL TASK OF ROLLING BACK THE WELFARE STATE AND REVAMPING THE OLD POLITICAL ORDER ITALY STILL IS BESET BY PROBLEMS THE NEW AUSTERITY MEASURES HIGHER TAXES PRIVATIZATIONS AND GOVERNMENT SPENDING CUTS ARE SLOWING ECONOMIC GROWTH AND CREATING MORE UNEMPLOYMENT PROBLEMS DESTINED TO LAST FOR TWO TO THREE YEARS POLITICAL UNCERTAINTY CLOUDS THE FUTURE AS NO CLEAR ALTERNATIVE PARTIES HAVE EMERGED TO REPLACE THOSE DISCREDITED BY CORRUPTION BUT IN THE SHORT TERM FINANCIAL AND POLITICAL ANALYSTS SAY ITALY'S FIRST TECHNOCRAT PREMIER HAS BECOME A FIGURE OF STABILITY DURING THE SYSTEMIC OVERHAUL THAT HAS BEEN DUBBED THE CASHMERE REVOLUTION ALTHOUGH PARLIAMENT HAS DAMAGED ITS IMAGE IT'S CONTINUING TO WORK HARD AND HAS FINISHED THE NEW ELECTORAL LAW MR CIAMPI SAID THE BIG DANGER WAS GOING TO ELECTIONS WITH AN UNBALANCED SYSTEM BUT THAT DANGER HAS PASSED HE SAID THE GOVERNMENT IS NOW FINISHING DETAILS OF THE NEW ELECTORAL LAWS WHICH WILL CONVERT PARLIAMENTARY ELECTIONS INTO A MORE STREAMLINED MAJORITYWINS SYSTEM FROM THE CURRENT PROPORTIONAL REPRESENTATION NEW CONSTITUENCY MAPS SHOULD BE DRAWN BEFORE A DEC 20 DEADLINE HE SAYS AND ELECTIONS WILL THEN BE HELD IN A BRIEF TIME SINCE MR CIAMPI WAS APPOINTED FIVE MONTHS AGO THE ECONOMIC PRESSURES THAT SENT THE ITALIAN ECONOMY INTO A TAILSPIN LAST AUTUMN HAVE EASED THE BANK OF ITALY'S DISCOUNT RATE HISTORICALLY HIGH TO FINANCE THE GOVERNMENT'S BALLOONING PUBLIC DEBT HAS FALLEN TO 85 FROM 15 LAST SUMMER TRIMMING 13 TRILLION LIRE 844 BILLION IN ANNUAL DEBT SERVICING FOR EACH PERCENTAGEPOINT REDUCTION AND INFLATION DESPITE A 30 DEVALUATION OF THE LIRA LAST AUTUMN HAS FALLEN TO 42 FROM 54 LAST YEAR I THINK THERE'S GREATER INTERNATIONAL CONFIDENCE THAT ITALY IS CAPABLE OF FACING THE PROBLEMS OF ITS PUBLIC DEBT WITHOUT RESORTING TO DRASTIC MEASURES MR CIAMPI SAYS CIAMPI COMES FROM POSSIBLY THE MOST HIGHLY RESPECTED INSTITUTION IN ITALY HE RESTORED BADLY NEEDED CREDIBILITY ON INTERNATIONAL MARKETS SAYS GIORGIO RADAELLI AN INTERNATIONAL ECONOMIST AT SHEARSON LEHMAN IN LONDON MR CIAMPI'S BIGGEST COMING BATTLE WILL BE TO WIN PARLIAMENTARY PASSAGE OF THE 1994 BUDGET A DOSE OF HARSH MEDICINE DURING A DEEP RECESSION THE PACKAGE AIMS TO CUT THE ANNUAL BUDGET DEFICIT TO 87 OF THE GROSS DOMESTIC PRODUCT NEXT YEAR WHICH WOULD BE THE FIRST TIME IT HAS BEEN UNDER 10 IN A DECADE IT INCLUDES 27 TRILLION LIRE IN SPENDING CUTS IN PENSIONS EDUCATION HEALTH CARE AND A RADICAL OVERHAUL OF THE CIVIL SERVICE LEFT UNCORRECTED ITALY'S PUBLIC DEBT COULD REACH MORE THAN 119 OF GDP NEXT YEAR RISING TO MORE THAN 120 BY 1995 DESPITE CALLS BY SOME FINANCIAL EXPERTS TO MAKE EVEN MORE DRASTIC CUTS NEXT YEAR MR CIAMPI SAID HE IS AGAINST DRASTIC MEASURES IN A PERIOD OF RECESSION THOSE SOLUTIONS WOULD HAVE DAMAGED ITALY FOR GENERATIONS HE SAYS THE BUDGET CUTS WHILE WELCOMED BY FINANCIAL MARKETS HAVE MET WITH STIFF POLITICAL OPPOSITION AS ITALIANS BEGIN TO FEEL THE FIRST EFFECTS OF CUTBACKS AFTER DECADES OF GOVERNMENT OVERSPENDING UNEMPLOYMENT IN ITALY HAS ALWAYS BEEN A FLAT LINE OF 9 TO 11 BUT NOW IT COULD SHOOT UP AND CREATE ENORMOUS LABOR UNREST SAYS MR RADAELLI TO IMAGINE THAT OVERCOMING THE DIFFICULTIES OF THE COUNTRY IS MANAGEABLE ONLY WITH FINANCIAL ACCOUNTING IS A BIG RISK AND IT SEEMS TO ME CIAMPI HAS THE MENTALITY OF A BANKER SAYS FORMER CHRISTIAN DEMOCRAT PREMIER CIRIACO DE MITA OTHERS CRITICIZE THE SPECIFIC BUDGET CUTS SAYING THEY PENALIZE THE MIDDLE AND LOWER CLASSES WE THINK HE HAS REALISTIC GOALS IN THIS BUDGET BUT MUCH OF IT IS UNFAIR LIKE DELAYS IN THE PAYMENT OF OLDAGE PENSIONS AND THE FAILURE TO SIMPLIFY SOME COMPLICATED TAXES SAYS PIA SARACENO DIRECTOR OF ISTITUTO PER LA RICERCA SOCIALE A MILAN ECONOMIC THINK TANK BUT MR CIAMPI REMAINS RESOLUTE THAT THE ANSWER TO ITALY'S UNEMPLOYMENT PROBLEMS AND CHRONIC ECONOMIC ILLS LIES IN CONTROLLING INFLATION AND INTEREST RATES THE THREE ECONOMIC TRENDS THAT DISCOURAGED INVESTMENT IN THE PAST WERE A HIGH LIRA VERY HIGH INTEREST RATES AND HIGH SALARIES MR CIAMPI SAYS TODAY THE EXCHANGE RATE IS COMPETITIVE INTEREST RATES ARE FALLING AND SALARIES DUE TO THE NEW WAGE AGREEMENT GREW LESS THAN INFLATION THIS YEAR THIS IS A REVOLUTIONARY CHANGE THAT COMPANIES HAVE TODAY 9309160077 930916 UN AGENCY PROPOSES TAX ON PRIVATE ASSETS AROUND THE WORLD WASHINGTON A UNITED NATIONS AGENCY CALLED FOR A ONETIME TAX ON PRIVATE FINANCIAL ASSETS TO HELP GOVERNMENTS AROUND THE WORLD REDUCE THEIR BUDGET DEFICITS AND TEMPORARILY INCREASE GOVERNMENT SPENDING TO SPUR ECONOMIC GROWTH REDUCING DEFICITS IN THE TRADITIONAL WAY IE BY REDUCING PUBLIC EXPENDITURE OR RAISING TAXES WOULD INEVITABLY BE DEFLATIONARY THE UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT DECLARED IN ITS NEW ANNUAL REPORT BUT DOING SO BY REDUCING DEBT THROUGH PRIVATIZATION AND A ONETIME TAX ON PRIVATESECTOR HOLDINGS OF FINANCIAL ASSETS NEED NOT BE THE AGENCY BASED IN GENEVA ACKNOWLEDGED PRACTICAL DIFFICULTIES IN ITS PROPOSAL THE INSPIRATION FOR WHICH COMES FROM THE 1920S WRITINGS OF ECONOMIST JOHN MAYNARD KEYNES AS ENVISIONED BY THE UN AGENCY THE LEVY WOULD PRIMARILY FALL ON INSTITUTIONAL INVESTORS THERE ISN'T ANY INDICATION THAT THE WORLD'S MAJOR GOVERNMENTS ARE WILLING TO CONSIDER SUCH A POLICY BUT THE UNCTAD REPORT REFLECTS CONCERN ABOUT THE STATE OF THE GLOBAL ECONOMY THAT IS WIDELY SHARED AROUND THE WORLD THE PROJECTED RECOVERY IN THE DEVELOPED MARKET ECONOMIES HAS FAILED TO MATERIALIZE THE AGENCY SAID IT EXPECTS THE WORLD ECONOMY TO EXPAND 14 THIS YEAR THE SAME AS LAST WITH THE FASTEST GROWTH IN ASIA 9309160074 930916 REVIEW & OUTLOOK EDITORIAL PRODIGAL SON OF THE REVOLUTION THAT CHINA HAS APPARENTLY RELEASED WEI JINGSHENG FROM HIS HELLISH ISOLATION IN THE GULAG IS GOOD NEWS FOR THIS REMARKABLE MAN BUT IT'S NOT A REASON TO AWARD THE 2000 OLYMPICS TO THE PEOPLE'S REPUBLIC WEI JINGSHENG MAY BE OUT OF JAIL THOUGH BY LATE WEDNESDAY IN CHINA HE HADN'T BEEN SEEN BUT THE SYSTEM THAT PUT HIM THERE REMAINS READY TO RUN OVER THE NEXT WEI JUST ASK HAN DONGFANG WHO WAS BUNDLED OUT OF CHINA AND STRIPPED OF HIS PASSPORT FOR DARING TO ADVOCATE THAT A WORKERS' STATE LIKE CHINA WOULD BENEFIT FROM FREE TRADE UNIONS OR POOR WU SHISHEN SENTENCED TO LIFE IN JAIL FOR LEAKING A SPEECH BY PARTY HACK JIANG ZEMIN OR REN WANDING ZHANG JINGSHENG SUN WEIBANG AND LIU JINGSHENG WHO ALL SERVED TIME FOR THEIR ACTIVITIES DURING THE DEMOCRACY WALL ERA AND WERE THEN REIMPRISONED AFTER THE 1989 CRACKDOWN MR WEI IS BY NO MEANS FREE OF COURSE HIS POLITICAL RIGHTS SUCH AS THEY ARE REMAIN SUSPENDED YOU CAN BET HE IS NOT FOR EXAMPLE SIPPING TEA WITH SYMPATHETIC FOREIGN JOURNALISTS EAGER TO GET HIS VIEWS ON THE OLYMPICS TIANANMEN DENG XIAOPING AND DEMOCRACY IN CHINA MOST LIKELY HE WILL BE SEQUESTERED IN SOME SHABBY STATE GUESTHOUSE UNTIL AFTER THE SEPT 23 VOTE BY THE INTERNATIONAL OLYMPIC COMMITTEE THE LARGER POINT IS THAT MR WEI SHOULD NEVER HAVE BEEN IN JAIL IN THE FIRST PLACE BORN IN 1950 IN CHINA'S MIDDLE YANGTZE RIVER PROVINCE OF ANHUI TO TWO PARTY CADRES WEI JINGSHENG SPENT HIS CHILDHOOD AND ADOLESCENCE AS A TRUE SON OF THE REVOLUTION HE JOINED THE RED GUARDS IN 1966 AND WAS FIRST ENGROSSED AND LATER SICKENED BY WHAT HE EXPERIENCED FROM THIS MODEST INDEED MODEL PROLETARIAN BACKGROUND CAME ONE OF THE CLEAREST MOST POWERFULLY ARGUED VOICES OF LIBERTY OF OUR TIME WHEN A FEW CHINESE BEGAN PUTTING UP BIGCHARACTER POSTERS IN NOVEMBER 1978 MR WEI SOON BECAME INVOLVED HIS DAZIBAO ON THE FIFTH MODERNIZATION DEMOCRACY BECAME AN INSTANT CLASSIC AND THE MAGAZINE HE WORKED ON EXPLORATIONS EXPLORED THE DARK RECESSES OF COMMUNIST CHINA HIS WAS NEVER A TEMPERATE VOICE INSTEAD FROM THE MOMENT HE WENT PUBLIC MR WEI LAUNCHED A NOHOLDSBARRED ATTACK ON THE PREMISES OF THE COMMUNIST SYSTEM IN CHINA IN A PERHAPS APOCRYPHAL STORY AN ASSOCIATE ASKED HIM WHY HE DIDN'T TRY TO ARRANGE A MEETING WITH DENG XIAOPING WEI JINGSHENG IS SAID TO HAVE REPLIED WHY SHOULD I HE HAS NO AUTHORITY TO TALK TO ME WHO ELECTED HIM ARRESTED IN MARCH 1979 ON RIDICULOUS CHARGES OF SELLING STATE SECRETS AND COUNTERREVOLUTIONARY INCITEMENT MR WEI WAS SENTENCED TO 15 YEARS IN JAIL HIS TRIAL WAS A FARCE EVEN BY COMMUNIST STANDARDS EVEN FROM HIS SILENT IMPRISONMENT MR WEI EXERTED AN INFLUENCE THAT THE REGIME FOUND TROUBLESOME IN JANUARY 1989 ASTROPHYSICIST AND NOW EXILE FANG LIZHI WROTE AN OPEN LETTER TO DENG XIAOPING ON BEHALF OF MR WEI BY MARCH DOZENS OF CHINESE INTELLECTUALS HAD SIGNED A PETITION CALLING FOR THE RELEASE OF PRISONERS OF CONSCIENCE INCLUDING WEI JINGSHENG THIS WAS ALL PART OF THE CAULDRON OF IDEAS THAT WAS PERCOLATING IN CHINA THEN BEFORE THE GOVERNMENT CLAMPED THE LID IN THE AWFUL EVENTS OF JUNE 1989 WE ARE NOT IMPRESSED THAT AFTER 173 MONTHS IN JAIL HE WAS LET OFF SIX MONTHS BEFORE HIS SENTENCE EXPIRED WE AGREE WITH ROBIN MUNRO OF ASIA WATCH WHO TOLD US IT'S A DISGUSTING PERFORMANCE AND THE GOVERNMENT SHOULD GET NO CREDIT FOR CLEMENCY TO WAIT FOR SIX MONTHS UNTIL THE END THEN TO SPRING HIM LIKE A RABBIT OUT OF THE HAT IT'S TOO OBVIOUS FOR WORDS THE CHINA MR WEI REJOINS IS A FAR DIFFERENT PLACE FROM THE ONE HE KNEW WE SUSPECT THAT HE HAS NEVER SEEN A KARAOKE CLUB OR A ROTATING RESTAURANT HE WILL NO DOUBT BE AMAZED AT THE SPIFFY FASHIONS AND NOUVEAU RICHE SWAGGER OF MANY BEIJINGERS NO DOUBT THE WORLD WOULD LIKE TO LEARN WHAT HE THINKS OF IT ALL DURING THE HEADY DAYS OF THE DEMOCRACY WALL MR WEI ASKED POIGNANTLY NOW DO PEOPLE HAVE DEMOCRACY NO DO THEY WANT TO BE MASTERS OF THEIR OWN DESTINY DEFINITELY YES THIS WAS THE REASON FOR THE COMMUNIST PARTY'S VICTORY OVER THE KUOMINTANG BUT WHAT HAS HAPPENED TO THE PROMISE OF DEMOCRACY WHEN VICTORY WAS ALREADY WON 9309160073 930916 INTERNATIONAL AIR FRANCE'S NET LOSS WIDENED IN FIRST HALF PROMPTING MORE CUTS PARIS AIR FRANCE REPORTED A WIDER NET LOSS OF 38 BILLION FRENCH FRANCS 6774 MILLION FOR THE FIRST HALF PROMPTING THE AIRLINE TO ANNOUNCE ANOTHER ROUND OF CUTBACKS THE RESULT COMPARED WITH A YEAREARLIER NET LOSS OF 15 BILLION FRANCS AND A NET LOSS OF 327 BILLION FRANCS FOR ALL OF 1992 THE FRENCH STATEOWNED AIRLINE SAID IT PLANS TO REDUCE EMPLOYMENT BY ABOUT 4000 JOBS OR 9 BY THE END OF 1994 AS PART OF A REVISED PLAN TO RETURN TO PROFIT BY 1995 AIR FRANCE ALSO PLANS TO SELL SOME OF ITS HOLDINGS TO RAISE FUNDS AND REDUCE OVERALL COSTS BY 16 ONLY A RAPID ACTION OF THIS EXTENT WILL PERMIT A SUBSTANTIAL IMPROVEMENT IN THE RESULTS IN 1994 AND A RETURN TO EQUILIBRIUM IN 1995 THE COMPANY SAID THE COSTCUTTING PLAN IS THE AIRLINE'S THIRD SUCH EFFORT TO BRING SPENDING INTO LINE WITH REVENUE AIR FRANCE NOW PLANS TO ELIMINATE 3000 GROUNDPERSONNEL POSTS AND 1000 FLIGHTCREW MEMBERS IT ALREADY HAS CUT ABOUT 4600 JOBS THE AIRLINE FURTHER PLANS TO CONTINUE A WAGE FREEZE INTRODUCED LATE LAST YEAR AMONG THE ASSET SALES PLANNED ARE PART OF AIR FRANCE'S 57 STAKE IN THE MERIDIEN HOTEL CHAIN AND THE TOTAL DISPOSAL OF SARESCO A CHAIN OF 47 DUTYFREE STORES AND RESTAURANTS THE AIRLINE ALSO SAID IT WILL CEASE FLYING ON 30 UNPROFITABLE ROUTES THAT COMES AFTER STOPPING SERVICE ON ABOUT 140 ROUTES SINCE THE START OF THE AVIATION CRISIS 9309160072 930916 QVC AND DILLER CONSIDER A BID FOR PARAMOUNT STOCK GAINS 22 ON NEWS ALLEN & CO IS HELPING GROUP LOOK AT OPTIONS BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL ALLEN & CO AN INFLUENTIAL ENTERTAINMENT INVESTMENTBANKING FIRM IS HELPING QVC NETWORK INC AND ITS CHAIRMAN BARRY DILLER WEIGH A RIVAL BID TO VIACOM INC'S PROPOSAL TO ACQUIRE PARAMOUNT COMMUNICATIONS INC QVC IS JOINTLY CONTROLLED BY LIBERTY MEDIA INC COMCAST CORP AND MR DILLER ALL THREE DECLINED TO COMMENT AS DID ALLEN & CO HOWEVER PEOPLE CLOSE TO THE GROUP CONFIRMED THAT ALLEN & CO ONE OF QVC'S REGULAR ADVISERS HAS BEGUN A STUDY OF A POSSIBLE BID FOR PARAMOUNT WITH THE SUPPORT OF LIBERTY AND COMCAST ALLEN & CO HAS DONE INVESTMENT BANKING WORK FOR VIACOM IN THE PAST AND ADVISED IT DURING AN UNSUCCESSFUL ATTEMPT MORE THAN TWO YEARS AGO TO NEGOTIATE A MARRIAGE WITH PARAMOUNT HOWEVER VIACOM DIDN'T RETAIN ALLEN THIS TIME AROUND CHOOSING TO GO WITH SMITH BARNEY SHEARSON INC AND ITS CHAIRMAN ROBERT GREENHILL INSTEAD THAT DECISION BY VIACOM CHAIRMAN SUMNER REDSTONE FREED ALLEN CHAIRMAN HERBERT A ALLEN JR TO ADVISE POTENTIAL COMPETING BIDDERS MR ALLEN HAS BEEN INVOLVED IN THE SALE OF TWO HOLLYWOOD STUDIOS IN RECENT YEARS ADVISING COCACOLA CO ON ITS SALE OF COLUMBIA PICTURES TO SONY CORP AND ADVISED MATSUSHITA ELECTRIC INDUSTRIAL CO IN ITS PURCHASE OF MCA INC THE VALUE OF VIACOM'S BID TO BUY PARAMOUNT FOR CASH AND STOCK HAS BEEN DROPPING SINCE BEING ANNOUNCED SUNDAY AT 82 BILLION OR 6914 A SHARE THAT FIGURE WAS BASED ON THE CLOSING PRICES OF VIACOM'S TWO CLASSES OF STOCK FRIDAY VIACOM'S STOCK HAS DRIFTED DOWNWARD SINCE THEN HOWEVER AND THE BID IS NOW VALUED AT 6531 A PARAMOUNT SHARE OR 77 BILLION PARAMOUNT AND VIACOM HAVE PROVISIONS IN THEIR AGREEMENT THAT DISCOURAGE ANOTHER BID BOTH COMPANIES HAVE IN THE PAST WEEK SAID THEY AREN'T WORRIED ABOUT A RIVAL BID FROM THE QVC GROUP YESTERDAY VIACOM DECLINED TO COMMENT MARTIN S DAVIS PARAMOUNT'S CHAIRMAN SAID THAT THIS MERGER MAKES SO MUCH SENSE BY CREATING BOTH PRESENT AND FUTURE SHAREHOLDER VALUE THAT NO ONE WILL BE ABLE TO UPSET IT PARAMOUNT STOCK GAINED 1375 TO 6450 ON VOLUME OF TWO MILLION SHARES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IN CONTRAST VIACOM CLASS A VOTING SHARES WERE UNCHANGED AT 6150 AND VIACOM CLASS B NONVOTING SHARES ROSE 25 CENTS TO 55625 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING VIACOM IS OFFERING A PACKAGE OF 01 CLASS A SHARE 09 CLASS B SHARE AND 910 IN CASH FOR EACH PARAMOUNT SHARE BASED ON YESTERDAY'S CLOSING PRICE OF THE SHARES OF THE TWO COMPANIES WALL STREET PROFESSIONALS SAY THE SKIMPY 81CENT PREMIUM IN THE VALUE OF THE VIACOM OFFER OVER THE CURRENT PARAMOUNT STOCK PRICE INDICATES TRADERS BELIEVE THERE IS A SLIGHT CHANCE OF A RIVAL BID TRADERS SAID PARAMOUNT STOCK WAS UP YESTERDAY LARGELY ON REPORTS THAT ALLEN'S STOCK TRADING DESK WAS RESTRICTED FROM TRADING PARAMOUNT STOCK BECAUSE OF ITS ROLE AS AN ADVISER TO QVC THE VIACOM OFFER FOR PARAMOUNT CONTAINS NO PRICE PROTECTION FOR SHAREHOLDERS IN THE EVENT OF A DECLINE IN VIACOM STOCK SOME ON WALL STREET SPECULATED THAT VIACOM MAY HAVE TO PROVIDE THAT PROTECTION IF THE VALUE CONTINUES TO DROP AND IF A RIVAL BID DOES EMERGE VIACOM MAY ULTIMATELY HAVE TO SWEETEN ITS PRICE IF IT WANTS TO COMPLETE THE PARAMOUNT ACQUISITION MR DILLER INITIALLY APPROACHED PARAMOUNT ABOUT A POSSIBLE FRIENDLY DEAL LAST SUMMER PEOPLE FAMILIAR WITH THE SITUATION SAID BUT WAS REBUFFED BY MR DAVIS WHO HAD FIRED MR DILLER FROM THE PARAMOUNT STUDIO A DECADE EARLIER WHETHER MR DILLER WILL DECIDE TO RESPOND WITH A HOSTILE BID NOW THAT VIACOM AND PARAMOUNT HAVE MADE A DEAL REMAINS TO BE SEEN HE REPORTEDLY HAS THE SUPPORT OF BOTH LIBERTY AND COMCAST AND IS BEING URGED BY SOME CLOSE ADVISERS TO GO AHEAD MR DILLER STILL HAS AMPLE TIME TO DECIDE THE PARAMOUNTVIACOM DEAL ISN'T EXPECTED TO CLOSE FOR SOME MONTHS AND A FURTHER EROSION IN ITS VALUE COULD WORK TO MR DILLER'S ADVANTAGE THE PARAMOUNT AND VIACOM CAMPS MAINTAIN QVC'S TELEVISION HOME SHOPPING NETWORK CAN'T OFFER PARAMOUNT THE SAME SYNERGISTIC MERGER OF ASSETS AS VIACOM'S EXTENSIVE CABLE PROGRAMMING HOLDINGS THEY ALSO NOTE THAT QVC HAS AGREED TO ACQUIRE HOME SHOPPING NETWORKS INC FOR 14 BILLION AND HAS YET TO COMPLETE THAT TRANSACTION BUT ONE WALL STREET PROFESSIONAL NOTED THAT QVC HAS THE WHEREWITHAL TO DO BOTH IT HAS VIRTUALLY NO DEBT AND STRONG CASH FLOW AND COULD EASILY RAISE 5 BILLION TO 6 BILLION IN FINANCING TO MAKE A RIVAL CASHANDSTOCK BID FOR PARAMOUNT PROPONENTS OF A QVC BID SAY MR DILLER HAS PLENTY OF CREDIBILITY IN MAKING A BID FOR PARAMOUNT BECAUSE OF HIS BACKGROUND BOTH AT THAT COMPANY AND ELSEWHERE IN THE ENTERTAINMENT INDUSTRY HE SPENT HIS EARLY CAREER IN PROGRAMMING AT THE ABC NETWORK AND AFTER LEAVING PARAMOUNT RAN NEWS CORP'S FOX STUDIO AT FOX HE LAUNCHED ITS BROADCASTING NETWORK QVC'S SHARES HAVE MORE THAN DOUBLED SINCE MR DILLER CAME ON BOARD IN DECEMBER AND BEGAN EXPANDING ITS HOME SHOPPING BUSINESS AND EXPLORING NEW NETWORKS QVC SHARES CLOSED UP 125 OR 2 TO 6275 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY HAS A STOCK MARKET VALUE OF ABOUT 4 BILLION 9309160071 930916 ECONOMY MURDER FAILS TO SPUR MASS CANCELLATION OF VISITS TO FLORIDA BUT WORRY SPREADS A WALL STREET JOURNAL ROUNDUP THE LATEST MURDER OF A BRITISH TOURIST IN FLORIDA LED ONE BRITISH TABLOID TO BLUNTLY WARN ITS READERS KEEP OUT OF FLORIDA SO FAR HOWEVER THERE IS LITTLE EVIDENCE OF MASS CANCELLATIONS BY TOURISTS FROM EUROPE AND ELSEWHERE BUT THAT HASN'T STOPPED PANICKED SPECULATION BY FLORIDA OFFICIALS AND THE STATE'S TRAVEL INDUSTRY WITHIN HOURS OF TUESDAY'S KILLING THE NINTH MURDER OF A FOREIGN TOURIST IN FLORIDA DURING THE PAST YEAR THE STATE ANNOUNCED ROUNDTHECLOCK PATROLS AT HIGHWAY REST STOPS SUSPENDED ITS TOURISM ADVERTISING CAMPAIGN AND SET UP AN 800 NUMBER FOR CONCERNED TRAVELERS CARRENTAL COMPANIES DONATED MORE THAN 100 CARS FOR THE EXPANDED PATROLS AND SECURITY OFFICIALS FROM MAJOR CARRENTAL FIRMS WILL MEET IN MIAMI TODAY TO DISCUSS IMPROVED SAFETY AT STAKE IS A TOURISM INDUSTRY THAT IS THE BIGGEST SINGLE CHUNK OF FLORIDA'S ECONOMY BRINGING IN 31 BILLION ANNUALLY THE NUMBER OF FOREIGN TOURISTS INCREASED ABOUT 13 A YEAR BETWEEN 1988 AND 1992 AND THEY NOW ACCOUNT FOR ABOUT 20 OF THE OVER 40 MILLION PEOPLE WHO VISIT THE STATE EACH YEAR WHAT WORRIES FLORIDA IS PEOPLE SUCH AS LONDONER TONY LANGDON MR LANGDON A BROKER WILL BE COMING TO THE US IN NOVEMBER AND HAD HOPED TO ATTEND A FOOTBALL GAME IN THE STADIUM OF HIS FAVORITE TEAM THE MIAMI DOLPHINS BUT IN THE WAKE OF TUESDAY'S KILLING HE SAID I'M GOING TO TRY TO ATTEND AN AWAY GAME I'D HAVE TO THINK TWICE ABOUT VISITING FLORIDA THE LATEST MURDER FOLLOWED BY ONLY A WEEK THE KILLING OF A GERMAN VISITOR IN MIAMI AND IS IN SOME WAYS THE MOST RANDOM AND FRIGHTENING OF THE SPATE OF TOURIST KILLINGS IN FLORIDA THE VICTIM GARY COLLEY WASN'T A LOST TOURIST WANDERING CONSPICUOUSLY THROUGH A CRIMERIDDEN MIAMI DISTRICT RATHER HE WAS PARKED AT A WELLLIT INTERSTATE HIGHWAY REST AREA IN RURAL NORTH FLORIDA WHEN TWO YOUTHS TRIED TO ROB HIM AND SHOT HIM IN THE NECK INSTEAD SUCH INCIDENTS UNDERSCORE THE IMAGE ABROAD OF AMERICA AS A FREEFIRE ZONE IN WHICH NO AMOUNT OF CAUTION CAN SHIELD VISITORS FROM STRAY VIOLENCE THE UNITED STATES IS A SICK COUNTRY SAID TERRY COLLEY THE FATHER OF THE BRITISH TOURIST KILLED ON TUESDAY ADDED ARNOLD NAIMAN HEAD OF A HOUSEWARESPRODUCTS COMPANY IN TORONTO THE UNITED STATES IS A SHOOTING COUNTRY THEY GET MORE FUN FROM SHOOTING THAN THEY GET FROM SEX HOWEVER MR NAIMAN PLANS TO WINTER AT HIS FLORIDA CONDO AS USUAL THIS YEAR AND TRAVEL AGENTS IN CANADA BRITAIN AND GERMANY REPORTED FEW CANCELLATIONS REPORTS FROM AMERICAN TRAVEL AGENTS WERE MIXED ANGELA SOTO AN OFFICIAL AT SUN BEACH TRAVEL IN MIAMI WHICH BOOKS MANY EUROPEAN TOUR GROUPS BELIEVES FOREIGN TOURISTS ARE AVOIDING FLORIDA SHE SAID THE COMPANY'S BUSINESS IS OFF 51 FROM THE SAME PERIOD LAST YEAR DELTA AIR LINES ALSO SAID THERE HAVE BEEN CANCELLATIONS BY INTERNATIONAL TRAVELERS DUE TO SAFETY CONCERNS SOME PASSENGERS WANTED TO CHANGE FROM FLORIDA TO OTHER STATES BUT ONE PASSENGER SAID HE SIMPLY DIDN'T WANT TO TAKE A TRIP TO THE US A DELTA SPOKESMAN SAID THE IMPACT ON DOMESTIC TRAVELERS ALSO ISN'T YET CLEAR NORTHEASTERNERS HAVE CONDOS AND SECOND HOMES IN FLORIDA AND THEY'LL CONTINUE TO GO DOWN THERE SAID BECKY GRIFFIN WHO WORKS FOR A TRAVEL FIRM IN HARTFORD CONN HOWEVER MS GRIFFIN WHO WAS HERSELF MUGGED AND ROBBED NEAR THE MIAMI AIRPORT LAST YEAR WHEN SHE STOPPED HER CAR AFTER SOME YOUTHS TOLD HER THE ENGINE WAS ON FIRE SAID MOST OF HER CUSTOMERS ALREADY AVOID MIAMI PREFERRING CITIES SUCH AS FORT LAUDERDALE ORLANDO AND WEST PALM BEACH AND STEPHANIE LANEY GENERAL MANAGER OF LANEY INTERNATIONAL TRAVEL IN ATLANTA PLANS TO INCLUDE A CAUTION ABOUT FLORIDA IN A CLIENT NEWSLETTER IF THERE ARE MORE INCIDENTS SHE SAID THE COMPANY WILL ASK CLIENTS VISITING FLORIDA TO SIGN A WAIVER SAYING THEY HAVE BEEN WARNED ABOUT THE DANGERS OF GOING THERE AS A TRAVEL AGENT ONE THING WE PROVIDE IS GUIDANCE AND COUNSELING SHE SAYS I DO NOT WISH TO BE PUT IN A LIABILITY SITUATION WALT DISNEY CO WHOSE DISNEY WORLD PARK IN ORLANDO GETS ABOUT 25 OF ITS VISITORS FROM OVERSEAS APPEARED TO BE FEELING SOME EFFECTS DISNEY'S STOCK FELL 150 OR 37 YESTERDAY TO CLOSE AT 39125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALTHOUGH THE DECLINE WAS ATTRIBUTED TO VARIOUS ECONOMIC FACTORS ONE ANALYST SAID THAT THESE EFFECTS ARE SOMEWHAT HEIGHTENED BY THE NEGATIVE PUBLICITY SURROUNDING THE TOURIST KILLINGS CARRENTAL COMPANIES ARE TAKING NEW STEPS TO PROTECT THEMSELVES FROM THE VIOLENCE CAR PHONES WHICH TRADITIONALLY HAVE ONLY BEEN OFFERED TO BUSINESS CUSTOMERS NOW MAY BECOME AVAILABLE TO LEISURE TRAVELERS TOO ALLOWING THEM TO CALL FOR HELP IN AN EMERGENCY HERTZ SAYS THAT IN THE NEXT 30 DAYS IT WILL BE INSTALLING A SUBSTANTIAL NUMBER OF CAR PHONES IN ITS MIAMI AND ORLANDO FLEETS THOUGH IT SAYS THE MOVE IS UNRELATED TO SAFETY AVIS PLANS A SIMILAR STEP AND IT ALSO BEGAN A PILOT PROGRAM IN ORLANDO EARLIER THIS YEAR TO INSTALL COMPUTERIZED MAPS IN THE CARS THE MAPS NOT ONLY DIRECT DRIVERS TO THEIR DESTINATION THEY ALSO ISSUE ORAL COMMANDS SUCH AS HAVE YOU DECIDED TO CHANGE YOUR PATH IT'S ALSO UNCLEAR HOW MUCH THE TOURISM INDUSTRY OR FLORIDA OFFICIALS CAN ULTIMATELY DO TO PROTECT TOURISTS THE GERMAN TOURIST KILLED LAST WEEK WAS BUMPED FROM BEHIND AS HE DROVE IN AN UNMARKED RENTAL CAR FROM THE AIRPORT TO A MIAMI HOTEL FOLLOWING A SIMILAR INCIDENT LAST APRIL IN WHICH A GERMAN WOMAN GOT OUT OF HER CAR AND WAS SHOT DEAD RENTALCAR AGENCIES BEGAN ISSUING PAMPHLETS ADVISING DRIVERS TO KEEP GOING IF RAMMED FOLLOWING THIS ADVICE WHICH HIS PREGNANT WIFE READ ALOUD AS HE DROVE THE GERMAN TOURIST IGNORED THE BUMP AND WAS QUICKLY SHOT DEAD LATER A FRUSTRATED MIAMI POLICE SERGEANT SAID OF THE COUPLE IT SEEMS LIKE THEY DID EVERYTHING RIGHT IT ALSO SEEMS THAT SUCH INCIDENTS ARE LIKELY TO KEEP OCCURRING FLORIDA POLICE HAVE SET UP A SPECIAL PROGRAM TO SEARCH FOR TOURISTS WHO APPEAR TO BE LOST IN CRIMERIDDEN AREAS DURING A PATROL ON TUESDAY NIGHT THE POLICE PICKED UP TWO SOUTH AMERICAN TOURISTS WHO WERE TRYING TO GET TO FORT LAUDERDALE BUT INSTEAD HAD GOTTEN LOST IN A TOUGH AREA OF MIAMI THEY HAD NO IDEA OF WHAT PLANET THEY WERE ON MUCH LESS WHAT STREET SAID DETECTIVE BILL KINNEBREW OF THE METRO DADE COUNTY POLICE DEPARTMENT MARION HAMMER EXECUTIVE DIRECTOR OF THE UNIFIED SPORTSMEN OF FLORIDA HAS ANOTHER EXPLANATION OF WHY SO MANY FOREIGN TOURISTS MAY BE TARGETED SO MANY FLORIDIANS NOW CARRY FIREARMS IN PART BECAUSE OF A 1987 LAW MAKING IT EASIER FOR RESIDENTS TO GET LICENSES FOR CONCEALED WEAPONS THAT ROBBERS PICK ON FOREIGNERS INSTEAD THEY'RE SMART ENOUGH TO KNOW THAT TOURISTS DON'T HAVE GUNS AND THAT TOURISTS ARE VULNERABLE MS HAMMER SAID GENERALLY THOUGH IT WAS FOREIGN TRAVELERS AT MIAMI INTERNATIONAL AIRPORT YESTERDAY WHO SEEMED CALMEST ABOUT THE RECENT SLAYINGS LATIN AMERICANS ARE USED TO LIVING WITH DANGER SAID MILENA BARRAGAN A COLOMBIAN VISITOR HOWEVER SHE SAID AN AMERICAN PASSENGER ON HER PLANE FROM COLOMBIA CHANGED HER TRAVEL PLANS AND DECIDED TO FLY TO ST PETERSBURG RATHER THAN DRIVE SIMILARLY AT CARRENTAL DESKS IT WAS AMERICANS SUCH AS MICHELLE COHEN WHO SEEMED MOST APPREHENSIVE THERE'S NOTHING ON THE CAR THAT IDENTIFIES IT AS A RENTAL THE COMPUTER PROGRAMMER ASKED A DOLLAR SALESWOMAN MS COHEN A CALIFORNIAN IN MIAMI ON BUSINESS SAID SHE WAS SO NERVOUS ABOUT THE TRIP THAT SHE DIDN'T TELL HER SISTER OR FATHER THAT SHE WAS GOING I'LL TELL THEM AFTERWARD SHE SAID 9309160070 930916 TECHNOLOGY & HEALTH FUJITSU LTD TO OFFER IBMCOMPATIBLE PCS IN JAPANESE MARKET TOKYO FUJITSU LTD IN THE LATEST SIGN OF TURMOIL IN JAPAN'S DOMESTIC PERSONALCOMPUTER MARKET SAID IT WILL OFFER PCS IN JAPAN THAT ARE COMPATIBLE WITH THE STANDARD SET BY INTERNATIONAL BUSINESS MACHINES CORP UNTIL RECENTLY JAPAN'S PC BUSINESS WAS SLEEPY AND HIGHLY FRAGMENTED IN CONTRAST TO THE US WHERE MOST PC MAKERS FOLLOW IBM'S STANDARD THE JAPANESE MARKET HAS BEEN DIVIDED AMONG COMPUTER MAKERS THAT PRODUCE MACHINES THAT USE DIFFERENT STANDARDS AND THUS CAN'T RUN THE SAME PROGRAMS NEC CORP WITH ITS VAST RETAIL AND SERVICE NETWORK AND A HUGE SOFTWARE LIBRARY CONTROLS MORE THAN 50 OF THE MARKET SINCE LAST YEAR HOWEVER COMPAQ COMPUTER CORP IBM AND OTHER US MAKERS HAVE BEEN SHAKING UP JAPAN'S PC WORLD WITH AN AMERICANSTYLE PRICE WAR AND MARKETING BLITZ THE INTRODUCTION OF A NEW JAPANESELANGUAGE VERSION OF MICROSOFT CORP'S WINDOWS SOFTWARE HAS ADDED TO THE TUMULT BY MAKING IT POSSIBLE TO RUN THE SAME PROGRAMS ON DIFFERENT MACHINES CUTTING NEC'S SOFTWARE ADVANTAGE WE THINK THE NEW PC IS GOING TO BE A MAJOR PART OF OUR PC BUSINESS SAID YURI MOMOMOTO A FUJITSU SPOKESWOMAN IN THE NEAR FUTURE BECAUSE OF THE NEW WINDOWS THE BRAND OF HARDWARE WILL BECOME IRRELEVANT MS MOMOMOTO SAID FUJITSU WILL SOON UNVEIL ITS FIRST MACHINE THAT USES THE DOS/V OPERATING SYSTEM THE JAPANESE VERSION DEVELOPED BY IBM AND OTHERS FUJITSU WHICH SELLS PCS THAT AREN'T COMPATIBLE WITH EITHER NEC'S OR IBM'S MACHINES MAKES MOST OF ITS SALES TO USERS OF ITS MAINFRAMES 9309160069 930916 TECHNOLOGY & HEALTH CHANGE IN CLINTON HEALTHCARE PROPOSAL LETS CONTRACTORS REMAIN INDEPENDENT BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A CHANGE THIS WEEK IN A RULE CONTAINED IN THE CLINTON ADMINISTRATION'S HEALTHCARE PROPOSAL MEANS THAT ABOUT 10 MILLION BUSINESS OWNERS COULD CONTINUE OPERATING AS INDEPENDENT CONTRACTORS INSTEAD OF BEING CLASSIFIED AS EMPLOYEES OF THEIR MAJOR CLIENTS THE CONTRACTORS HAD FEARED THAT BEING CLASSIFIED AS EMPLOYEES WOULD LEAD MAJOR COMPANIES TO STOP USING THEIR SERVICES TO AVOID HAVING TO PAY FOR THEIR HEALTH INSURANCE THIS ADJUSTMENT AFFECTING A LARGE CLASS OF SMALL BUSINESS OWNERS IS AN EXAMPLE OF THE KIND OF CHANGES LIKELY TO BE MADE AS THE WHITE HOUSE TINKERS WITH THE 239PAGE DRAFT BEFORE THE PROPOSAL IS OFFICIALLY UNVEILED NEXT WEEK ADMINISTRATION OFFICIALS SAID YESTERDAY THAT SOME 150 CHANGES HAD BEEN MADE TO THE DRAFT SO FAR INDEPENDENT CONTRACTORS A GROUP INCLUDING TRUCK DRIVERS AND COMPUTER PROGRAMMERS REAL ESTATE AGENTS AND DIRECT SALES AGENTS FOR COSMETICS AND OTHER PRODUCTS OFTEN WORK UNDER CONTRACT TO A COMPANY AND DON'T RECEIVE HEALTH BENEFITS THE DRAFT OF THE HEALTHCARE PLAN THAT BECAME PUBLIC LATE LAST WEEK SAID INDEPENDENT CONTRACTORS WHO RECEIVE 80 OF THEIR INCOME FROM ONE CONCERN WOULD BE CONSIDERED EMPLOYEES OF THAT COMPANY FOR PURPOSES OF RECEIVING HEALTH CARE THE RULE WAS DEVISED TO PREVENT COMPANIES FROM CLASSIFYING SOME WORKERS AS INDEPENDENT CONTRACTORS TO AVOID PROVIDING THEM WITH HEALTH INSURANCE THE PRESIDENT'S HEALTHCARE ADVISERS REVIEWED THEIR TREATMENT OF INDEPENDENT CONTRACTORS AFTER SOME SMALL BUSINESS ORGANIZATIONS COMPLAINED JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNCIL CALLED THE PROVISION A POTENTIAL LAND MINE EXPLAINING THAT ENTREPRENEURS WHO MAKE UP THE GROUP VIEW THEIR INDEPENDENT STATUS AS A VALUABLE PART OF THEIR BUSINESS STRATEGY THAT ONE IDEA WOULD HAVE COST US THOUSANDS OF JOBS SAID WAYNE SMITH EXECUTIVE DIRECTOR OF THE NATIONAL LIMOUSINE ASSOCIATION BECAUSE COMPANIES WOULD HAVE TO PAY ABOUT 23 MORE IN FEDERAL AND STATE TAXES TO CLASSIFY CONTRACTORS AS EMPLOYEES NOT INCLUDING THE COST OF HEALTH CARE THE RAPID CHANGE IN THE PROVISION HIGHLIGHTS THE IMPORTANCE OF SMALL BUSINESS TO THE SUCCESS OF THE PRESIDENT'S HEALTHCARE PLAN WITH THE LARGEST SMALL BUSINESS LOBBYING GROUP THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS STAUNCHLY OPPOSED TO THE PROPOSAL BECAUSE IT FORCES COMPANIES TO PROVIDE HEALTH INSURANCE THE ADMINISTRATION IS SENSITIVE TO HOW SMALL COMPANIES VIEW ITS PLAN THIS MORNING PRESIDENT CLINTON WILL MEET WITH ABOUT 20 SMALL BUSINESS OWNERS AT A HARDWARE STORE HERE TO EXPLAIN AND PROMOTE HIS REVISION OF THE HEALTH CARE SYSTEM ALSO YESTERDAY A GROUP OF MODERATE SENATE REPUBLICANS AS EXPECTED UNVEILED THEIR OWN PLAN TO EXTEND HEALTH COVERAGE TO ALL AMERICANS RATHER THAN REQUIRING EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE THE GOP PROPOSAL WOULD REQUIRE EVERY PERSON TO OBTAIN HEALTH INSURANCE TO HELP LOWINCOME AND MIDDLEINCOME PEOPLE AFFORD COVERAGE THE PROPOSAL WOULD OFFER GOVERNMENT VOUCHERS TO PEOPLE WITH INCOMES BELOW 240 OF THE FEDERAL POVERTY LINE THOUGH THEY PRESENTED THE PROPOSAL AS AN ALTERNATIVE TO THE CLINTON PLAN THE REPUBLICAN SENATORS WERE CONCILIATORY IN THEIR REMARKS WE'RE HERE IN THE SPIRIT OF COOPERATION SAID SENATE MINORITY LEADER ROBERT DOLE OF KANSAS 9309160068 930916 BUSINESS BRIEF HONEYWELL INC SETTLEMENT WITH FUJI IS SET IN PATENTINFRINGEMENT CASE HONEYWELL INC SAID IT HAS REACHED A SETTLEMENT WITH FUJI PHOTO FILM CO OF JAPAN THE LAST COMPANY INVOLVED IN A PATENTINFRINGEMENT DISPUTE INVOLVING HONEYWELL'S AUTOFOCUS TECHNOLOGY THE MINNEAPOLIS MAKER OF CONTROL EQUIPMENT HAS COLLECTED 3142 MILLION FROM 14 OTHER CAMERA MANUFACTURERS IN ASIA AND THE US SINCE MARCH 1992 FOR THEIR USE OF THE PATENTED TECHNOLOGY FOR LENSSHUTTER AND SINGLELENS REFLEX CAMERAS UNDER THE SETTLEMENT FUJI WILL PAY THE COMPANY AN UNDISCLOSED AMOUNT WHICH WILL BE INCLUDED IN HONEYWELL'S THIRDQUARTER RESULTS IN RETURN HONEYWELL AGREED TO DROP ITS LAWSUIT ALLEGING THAT FUJI USED ITS AUTOMATIC FOCUS CAMERA TECHNOLOGY WITHOUT PERMISSION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY HONEYWELL SHARES ROSE 50 CENTS TO 3650 9309160067 930916 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN FARMERS SET UP DOZENS OF ROADBLOCKS AROUND PARIS TO PROTEST WORLD TRADE TALKS THAT COULD LEAD TO A CUT IN FARM SUBSIDIES BUT THE GOVERNMENT SAID IT THWARTED THEIR ATTEMPTS TO BLOCKADE THE CAPITAL SETTING FIRE TO TIRES AND BALES OF HAY FARMERS IN THE COORDINATION RURALE MOVEMENT TIED UP ROADS AND BRIEFLY BLOCKED A RAIL LINE FROM BORDEAUX TRAFFIC WAS SNARLED FOR A HALF HOUR ON THE MAJOR RING ROAD AROUND PARIS BY CRATES OF APPLES ON THE HIGHWAY AND TRACTORS DRIVING AT SNAIL'S PACE PROTESTERS DISPERSED AS SOON AS POLICE ARRIVED AT THE ROADBLOCKS FARMERS ARE CALLING FOR THE GOVERNMENT TO REJECT A USEUROPEAN FARM TRADE AGREEMENT THAT IS CONSIDERED THE KEY TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE NEGOTIATIONS AND WOULD CUT SUBSIDIES TO EC FARMERS THE GOVERNMENT HAS THREATENED TO VETO THE PACT UNLESS THE IMPACT ON FRENCH FARMERS IS SOFTENED COORDINATION RURALE SAID IT NEVER PLANNED A BLOCKADE OF PARIS BUT WOULD CONTINUE ERECTING ROADBLOCKS A TAIWAN COURT CONVICTED YOU JIHCHENG A LAWMAKER IN THE RULING NATIONALIST PARTY OF USING GOVERNMENT FUNDS TO BUY VOTES IN LAST DECEMBER'S ELECTIONS AND SENTENCED HIM TO 14 YEARS IN PRISON THIRTYONE CODEFENDANTS RECEIVED TERMS RANGING FROM FOUR MONTHS TO EIGHT YEARS MR YOU THE THIRD NATIONALIST CANDIDATE TO BE CONVICTED OF FRAUD IN THE DECEMBER POLL SAID HE WOULD APPEAL THE COURT ORDERED THE SEIZURE OF WHAT WAS LEFT OF THE MISUSED FUNDS ABOUT 4300 AND TOLD MR YOU A FORMER MAYOR TO REIMBURSE HIS VILLAGE FOR 670 BOXES OF TEA USED FOR BRIBES CHINA'S GRAIN PRODUCTION THIS SUMMER REACHED RECORD LEVELS BUT THE AUTUMN HARVEST MAY BE SMALLER THAN LAST YEAR'S THE SUMMER HARVEST AMOUNTED TO 108 MILLION TONS UP 47 MILLION TONS FROM 1992 HOWEVER THE HARVEST OF RAPESEED AN EDIBLEOIL SEED WAS DOWN BECAUSE OF LOW TEMPERATURES AND REDUCED PLANTING AREAS MOST GRAINPRODUCING AREAS WERE UNAFFECTED BY SEVERE FLOODS THAT HIT SOUTHERN AND EASTERN CHINA THIS SUMMER THE PHILIPPINE SUPREME COURT APPROVED THE GOVERNMENT'S SALE OF ART AND ANTIQUE SILVERWARE SEIZED FROM THE FAMILY OF LATE PRESIDENT FERDINAND MARCOS DISMISSING A PETITION BY ARTISTS WHO CONTENDED THE SALE INVOLVED NATIONAL TREASURES THE 82 PAINTINGS AND 71 CARTONS OF SILVERWARE FETCHED 133 MILLION IN A 1991 AUCTION THE TREASURES WERE GIFTS FROM FOREIGN COUNTRIES TO THE MARCOSES WHO LEFT THEM BEHIND IN 1986 AFTER A POPULAR REVOLT ENDED MR MARCOS'S 20YEAR RULE THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL LEND 90 MILLION TO POLAR LIGHTS A USRUSSIAN JOINTVENTURE OIL DEVELOPMENT PROJECT POLAR LIGHTS OWNED EQUALLY BY CONOCO INC OF THE US AND ARKHANGELSKGEOLOGIA A RUSSIAN STATEOWNED COMPANY HAS BEGUN CONSTRUCTION ON THE PROJECT WHICH INCLUDES 24 OIL WELLS AND A 40MILE PIPELINE IN THE ARDALIN OILFIELD NORTH OF THE ARCTIC CIRCLE IN ADDITION INTERNATIONAL FINANCE CORP A WORLD BANK ARM WILL LEND 60 MILLION FOR THE PROJECT AND THE US OVERSEAS PRIVATE INVESTMENT CORP WILL LEND 50 MILLION THE PROJECT'S TOTAL COST IS ESTIMATED AT 325 MILLION TO 350 MILLION BRAZIL AND CHINA SIGNED AN AGREEMENT TO DEVELOP AND LAUNCH TWO SATELLITES THE FIRST OF WHICH WOULD BE IN ORBIT BY OCTOBER 1996 THE PROJECT IS AIMED AT REDUCING THE TWO NATIONS' COSTS OF OBTAINING EARTH OBSERVATION DATA USED IN RESEARCH ON AGRICULTURE FORESTRY GEOLOGY GEOGRAPHY AND THE ENVIRONMENT BRAZIL SPENDS ABOUT 2 MILLION A YEAR FOR SUCH INFORMATION GATHERED BY US LANDSAT AND FRENCH SPOT SATELLITES BRAZIL WILL CONTRIBUTE 30 OF THE PROJECT'S 150 MILLION COST THE UNIONS CALLED AN EMERGENCY MEETING FOR NEXT WEDNESDAY TO DISCUSS A WARNING BY CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE THAT ANY PAY RAISES FOR GOVERNMENT WORKERS WOULD BE BASED ON PRODUCTIVITY GAINS PRODUCTIVITY WOULD BE DIFFICULT TO MEASURE FOR A TEACHER OR A NURSE THE UNIONS COMPLAIN THE GOVERNMENT LIMITED PAY INCREASES IN THE PUBLIC SECTOR THIS YEAR TO 15 IN AN ATTEMPT TO CUT A 78 BILLION BUDGET DEFICIT UNIONS HOWLED BUT THREATS OF INDUSTRIAL ACTION PROVED EMPTY PARTLY BECAUSE WORKERS FEARED LOSING THEIR JOBS IN THE MIDST OF A RECESSION WITH THE RECESSION ENDING UNION LEADERS WARNED MR CLARKE HE WOULD FACE INDUSTRIAL CHAOS AND UNREST IF PAY IS RESTRICTED ANGER AT THE 15 CEILING HAS BEEN FUELED BY CHANGES IN WORKING PRACTICES AND GOVERNMENT PLANS TO CONTRACT OUT OR PRIVATIZE MANY PUBLICSECTOR JOBS THE CITY OF NANJING IN EASTCENTRAL CHINA FORCED A RESTAURANT NAMED FOR MAO TSETUNG TO CHANGE ITS NAME SAYING COMMERCIALIZATION OF THE LATE COMMUNIST LEADER HURT THE MASSES' FEELINGS TOWARD HISTORY A DUTCH PETFOOD COMPANY WILL ISSUE A COMPACT DISK FOR DOGS THE RECORDINGS INCLUDE A SONG TITLED THAT'S MY DOGGY AND A SELECTION OF NOISES AT FREQUENCIES INAUDIBLE TO HUMANS 9309160066 930916 ECONOMY MANUFACTURERS SHOW OPTIMISM FOR THE QUARTER UPTURN IS FIRST SINCE MARCH BUT FIRMS DON'T EXPECT INCREASE IN PRICES JOBS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL SMALL MANUFACTURERS HAVE TURNED UPBEAT ABOUT THE BUSINESS OUTLOOK FOR THE FIRST TIME SINCE MARCH BUT MANY DON'T EXPECT PRICES OR EMPLOYMENT TO RISE ANYTIME SOON THE LATEST DUN & BRADSTREET SURVEY SHOWS THE MONTHLY SURVEY OF 1000 SMALL MANUFACTURERS FOUND THAT FIRMS EXPECT A SLIGHT BOOST IN NEW ORDERS BOTH DOMESTIC AND FOREIGN DURING THE NEXT THREE MONTHS AS WELL AS AN INCREASE IN PRODUCTION LEVELS AT THE SAME TIME INVENTORIES FOR FINISHED GOODS ARE EXPECTED TO DECLINE WHICH ALSO BODES WELL FOR FURTHER GAINS IN PRODUCTION THE NUMBERS AREN'T GREAT BUT CONSIDERING THE DECLINES WE'VE HAD FOR MANY MONTHS WE'LL TAKE GOOD NEWS WHERE WE CAN GET IT SAID DOUGLAS HANDLER MANAGER OF ECONOMETRIC ANALYSIS FOR D&B THE SENTIMENT INDEX A COMPOSITE OF EXPECTATIONS IN FIVE AREAS SUCH AS EXPORTS AND UNFILLED ORDERS ROSE 15 PERCENTAGE POINTS TO 181 FROM A MONTH EARLIER GAIL FOSLER CHIEF ECONOMIST OF THE CONFERENCE BOARD ADDED THAT DEMAND HAS BEEN OUTSTRIPPING PRODUCTION FOR SOME TIME AS BUSINESSES HAVE WORKED OFF INVENTORIES TO MEET ORDERS NOW IT'S NOT SURPRISING THAT TO CORRESPOND TO THE INCREASE IN DEMAND THERE WILL BE A PICKUP IN PRODUCTION A MOVE THAT COULD HAVE RIPPLE EFFECTS IN THE ECONOMY SHE ADDED BUT FEWER MANUFACTURERS IN THE CURRENT D&B SURVEY EXPECT AN INCREASE IN SELLING PRICES OR EMPLOYMENT DURING THE NEXT THREE MONTHS A NET OF 13 OF THE RESPONDENTS EXPECT EMPLOYMENT GAINS AND A NET OF 9 EXPECT AN INCREASE IN SELLING PRICES THAT IS DOWN FROM 15 AND 11 RESPECTIVELY A MONTH EARLIER OFFICIALS FROM A MIX OF MANUFACTURING COMPANIES INTERVIEWED YESTERDAY INDICATED SIMILAR CONDITIONS THANKS TO A RECENT UPTURN IN ORDERS WE'RE OPTIMISTIC ABOUT REVENUE SAYS MICHAEL GILCHRIST CHIEF FINANCIAL OFFICER OF EFI ELECTRONICS CORP A MAKER OF ELECTICAL SURGECONTROL PRODUCTS IN SALT LAKE CITY BUT HE SAID THE COMPANY IS APPREHENSIVE ABOUT SPENDING EFI'S MAIN CONCERN THE IMPACT OF THE PROPOSED NATIONAL HEALTH PLAN MR GILCHRIST SAYS THAT AS PROPOSED PRESIDENT CLINTON'S PLAN WOULD INCREASE HIS FIRM'S HEALTHCARE INSURANCE COSTS AT LEAST 20 WHICH WOULD MEAN WE WOULD HAVE TO CUT SPENDING ELSEWHERE SUCH AS JOBS ADVERTISING OR TRAVEL HUSSEY CORP A MAKER OF SPECTATOR SEATING FOR SCHOOL GYMNASIUMS AND SPORTS ARENAS ALSO IS COMFORTABLE WITH THE LEVEL OF DEMAND FOR ITS PRODUCTS BUT IS FINDING MORE INTENSE PRICE COMPETITION IN ITS INDUSTRY IT MEANS TIGHTENING OUR BELT MORE SAID STEPHEN KOLKHORST VICE PRESIDENT FINANCE AT THE NORTH BERWICK MAINE COMPANY AND ROBERT APPELBAUM EXECUTIVE VICE PRESIDENT OF CADIE PRODUCTS CORP IN PATERSON NJ BELIEVES THE MAIN REASON HIS BUSINESS PICKED UP IN THE PAST TWO MONTHS IS THAT CUSTOMERS HAVE REDUCED INVENTORIES CADIE MAKES HOUSEHOLD CLEANING PRODUCTS SUCH AS SPONGES AND CLOTHS THAT ARE SOLD THROUGH SUPERMARKETS NATIONWIDE IT APPEARS HE SAID THAT SUPERMARKET CHAINS CUT BACK INVENTORIES A LITTLE TOO MUCH AS BETTER WEATHER THIS SUMMER INCREASED STORE TRAFFIC FROM A YEAR EARLIER NOT ALL COMPANIES HOWEVER ARE CONVINCED THAT BETTER TIMES ARE HERE TO STAY IN JUST THE PAST WEEK THERE SEEM TO BE SOME SIGNS THINGS ARE PICKING UP AND WE HOPE IT'S A TREND SAID RONALD LOCKYER PRESIDENT OF PRECISION SHAPES INC A TITUSVILLE FLA MAKER OF SPECIALTY PARTS FOR A VARIETY OF INDUSTRIES BUT HE SAID HE HAS SEEN AN UNPREDICTABLE PATTERN ON ORDERS ALL YEAR THE IMPROVED MOOD OF MANUFACTURERS EVIDENT IN THE D&B SURVEY IS IN CONTRAST TO A RECENT SURVEY OF SMALL BUSINESSES BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THAT SURVEY SHOWED THE CONFIDENCE IN THE SIXMONTH OUTLOOK AT SMALL BUSINESSES USUALLY FIRMS WITH LESS THAN TEN EMPLOYEES FELL TO A 20YEAR LOW LAST MONTH THE MANUFACTURING SEGMENT OF THE NFIB'S INDEX HOWEVER IS LIKELY MORE UPBEAT SAYS WILLIAM DUNKELBERG CHIEF ECONOMIST AT NFIB BECAUSE THE MIDWEST WHERE MANY OF THOSE FIRMS ARE BASED IS RELATIVELY BETTER OFF THAN MOST OF THE COUNTRY MR HANDLER OF D&B SAID HIS COMPANY'S SURVEY OF THREEMONTH BUSINESS EXPECTATIONS HAS HISTORICALLY HAS CORRELATED 80 OF THE TIME TO ACTUAL ECONOMIC RESULTS AS MEASURED BY A THREEMONTH MOVING AVERAGE OF INDUSTRIAL PRODUCTION 9309160065 930916 BUSINESS BRIEF COCACOLA CO CONCERN EXPECTS LEGISLATION TO REDUCE EARNINGS FOR 1993 COCACOLA CO SAID IT EXPECTS NEW FEDERAL TAX LEGISLATION TO REDUCE EARNINGS FOR 1993 BY ABOUT 55 MILLION OR ABOUT FOUR CENTS A SHARE MOST OF THE CHARGES RESULTING FROM NEW TAXES AND TAXRELATED EXPENSES WILL BE REFLECTED IN THE ATLANTA BEVERAGE COMPANY'S THIRDQUARTER FINANCIAL STATEMENTS OF THE 55 MILLION 19 MILLION RELATES TO DEFERRED INCOMETAX ADJUSTMENTS OF BOTTLERS IN WHICH COCACOLA HAS AN EQUITY STAKE THE REMAINING 36 MILLION REFLECTS HIGHER CORPORATE AND OTHER TAX RATES FOR THE 1992 THIRD QUARTER THE COMPANY REPORTED EARNINGS OF 5406 MILLION OR 41 CENTS A SHARE ON REVENUE OF 351 BILLION FOR ALL OF 1992 COKE REPORTED NET INCOME OF 166 BILLION OR 126 A SHARE ON REVENUE OF 1307 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COCACOLA CLOSED AT 43875 DOWN 25 CENTS 9309160063 930916 BUSINESS BRIEF GULF STATES UTILITIES CO TEXAS REGULATORS ARE TOLD TO RECONSIDER COSTS RULING AN APPEALS COURT TOLD TEXAS REGULATORS TO RECONSIDER A 1988 DECISION DISALLOWING 145 BILLION IN NUCLEAR PLANT COSTS BY GULF STATES UTILITIES CO BEAUMONT TEXAS THE THIRD DISTRICT COURT OF APPEALS IN AUSTIN TEXAS RULED THAT THE RATE CASE COVERING THE RIVER BEND NUCLEAR POWER PLANT BE REMANDED TO THE PUBLIC UTILITIES COMMISSION OF TEXAS FOR FURTHER REVIEW GULF STATES OFFICIALS SAID THEY WERE PLEASED THAT THE APPEALS COURT HAD REVERSED THE FINAL ORDER OF THE COMMISSION WHICH GULF STATES APPEALED IN 1988 ACCORDING TO A GULF STATES SPOKESWOMAN THE COMMISSION NEVER OFFICIALLY DISALLOWED THE 145 BILLION THAT HAD BEEN THE TECHNICAL OFFSHOOT OF ANOTHER DECISION IF THE COMMISSION EVENTUALLY RULES FAVORABLY REGARDING THE SETASIDE PORTION OF RIVER BEND INVESTMENT GULF STATES WILL AVOID A LARGE WRITEOFF COMPANY OFFICIALS NOTED BUT THE COMPANY WON'T BE PASSING THOSE COSTS THROUGH TO CUSTOMERS BECAUSE ENTERGY CORP NEW ORLEANS WHICH IS IN THE PROCESS OF MERGING WITH GULF STATES HAS AGREED TO A FIVEYEAR CEILING ON RATES 9309160061 930916 BUSINESS BRIEF SOFTWARE PUBLISHING CORP COSTCUTTING PLAN TO CAUSE CHARGE AGAINST 4TH QUARTER SOFTWARE PUBLISHING CORP SANTA CLARA CALIF SAID IT LAID OFF 21 OF ITS WORK FORCE AS PART OF A COSTREDUCTION PROGRAM AND WILL TAKE A CHARGE OF 18 MILLION TO 20 MILLION IN ITS FISCAL FOURTH QUARTER THE SOFTWARE CONCERN SAID IT REDUCED ITS FULLTIME AND CONTRACT WORK FORCE BY 140 EMPLOYEES CUTTING ITS TOTAL WORK FORCE TO 510 PEOPLE WORLDWIDE THE NONRECURRING CHARGE IN THE QUARTER ENDING SEPT 30 WILL INCLUDE 15 MILLION TO 16 MILLION AS RESERVES FOR EXCESS FACILITIES AND 3 MILLION TO 4 MILLION FOR STAFF REDUCTIONS AND OTHER COSTS SOFTWARE PUBLISHING ITS PROFIT MARGINS UNDER PRESSURE FROM FIERCE PRICE COMPETITION IN THE SOFTWARE MARKET HAS SEEN PROFITS DWINDLE FOR SEVERAL QUARTERS IT POSTED A LOSS OF NEARLY 6 MILLION IN ITS THIRD QUARTER ENDED JUNE 30 COMPARED WITH NET INCOME OF 679000 A YEAR EARLIER 9309160060 930916 CYBERSPACE CLASH COMPUTER USERS BATTLE HIGHTECH MARKETERS OVER SOUL OF INTERNET FIRMS BELIEVE THERE IS ROOM FOR ADS ON VAST NETWORK BUT RISK BEING FLAMED' GORE'S SUPERHIGHWAY PROJECT BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL SEARCHING FOR NEW CUSTOMERS AMONG THE USERS OF THE FASTGROWING INTERNET COMPUTERCOMMUNICATIONS NETWORK MESA RIDGE TECHNOLOGIES INC SENT OUT THOUSANDS OF ELECTRONICMAIL MESSAGES IN FEBRUARY ANNOUNCING ITS LATEST PRODUCTS BUT RATHER THAN GETTING SWAMPED WITH ORDERS FOR ITS NEW CIRCUIT BOARDS THE SMALL SAN DIEGO COMPANY WAS INUNDATED WITH HATE MAIL FROM USERS OF THE INTERNET OUTRAGED THAT THE NETWORK HAD BEEN USED FOR DIRECT MARKETING CHRISTOPHER DAVIS A SYSTEMS MANAGER WITH THE ELECTRONIC FRONTIER FOUNDATION A COMPUTER USERS' GROUP EMAILED THAT HE WOULD NOT BUY FROM MESA RIDGE NO MATTER WHAT THE PRICE OR PERFORMANCE WITHOUT SOME EVIDENCE OF BETTER UNDERSTANDING OF THE INTERNET CULTURE ON YOUR PART THE VITRIOL WAS POURING OFF THE SCREEN SAYS MICHAEL SEIDEL MESA RIDGE'S VICE PRESIDENT OF SALES AND MARKETING THERE WAS A PROFESSOR AT THE UNIVERSITY OF UTAH IN THE MATH DEPARTMENT WHO NOT ONLY SENT A NASTY EMAIL MESSAGE BUT CALLED ME PERSONALLY ON OUR 800 NUMBER AND REAMED ME OUT FOR 15 MINUTES MESA RIDGE WHICH LATER SENT OUT APOLOGIES HAD LEARNED A LESSON THAT MANY BUSINESSES HUNGRY TO EXPLOIT THE INTERNET'S EXPLOSIVE GROWTH WOULD DO WELL TO HEED RESIDENTS OF CYBERSPACE AS THE ONLINE COMPUTER GALAXY IS KNOWN ARE A WORLD APART THEY DO NOT TAKE KINDLY TO SALES PITCHES OR ELECTRONIC COLD CALLING MANY VIEW THEMSELVES AS PIONEERS OF A NEW AND BETTER VEHICLE FOR FREE SPEECH UNLIKE TELEVISION VIEWERS RADIO LISTENERS OR NEWSPAPER READERS THEY ARE HOOKED UP TO THE MESSAGE SENDER AND OTHER INTERNET PARTIES INTERACTIVELY MEANING THAT AN OFFENSE TO THEIR SENSIBILITIES CAN RESULT IN QUICK EMBARRASSING RETORTS VIEWED BY COUNTLESS NUMBERS OF THE NETWORK'S ESTIMATED 15 MILLION USERS THE INTERNET CULTURE IS DEATH ON TRADITIONAL ADVERTISING FORMS SAYS BILL WASHBURN EXECUTIVE DIRECTOR OF THE COMMERCIAL INTERNET EXCHANGE ASSOCIATION A TRADE GROUP THAT OFFERS COMMERCIAL ACCESS TO THE INTERNET IT ALWAYS BACKFIRES IT ALWAYS CREATES ANIMOSITY AND RANCOR SUCH CONSIDERATIONS ARE GROWING IN IMPORTANCE BECAUSE THE INTERNET A SOMEWHAT ANARCHIC GLOBAL ONLINE NETWORK OF THOUSANDS OF SMALLER COMPUTER NETWORKS BOTH PUBLIC AND PRIVATE IS RAPIDLY TAKING ON A MORE COMMERCIAL CHARACTER IN THE PAST THE FEDERALLY SUBSIDIZED INTERNET HAD OUTRIGHT RESTRICTIONS ON COMMERCIAL USE AND WAS LARGELY THE PRIVATE DOMAIN OF RESEARCHERS AND SCIENTISTS AT UNIVERSITIES AND FEDERAL AGENCIES WHO USED IT TO EXCHANGE EMAIL PROGRAMMING RESEARCH AND OTHER FILES BUT ALL THAT IS CHANGING THE NATIONAL SCIENCE FOUNDATION WHICH SUBSIDIZES THE INTERNET AND RESTRICTS COMMERCIAL USE ON ITS HIGHSPEED DATA BACKBONE HAS NO CONTROL OVER A NUMBER OF OTHER DATA LINES THAT ALSO ARE PART OF THE WEB THE NSF WILL START PHASING OUT ITS 115 MILLION ANNUAL SUBSIDY NEXT YEAR MEANING THAT EVEN THE VESTIGES OF REGULATION WILL BE GONE MEANWHILE A COTTAGE INDUSTRY OF PRIVATE COMPANIES OFFERING INTERNET ACCESS TO BUSINESSES AND INDIVIDUALS HAS EMERGED WHILE BIG CORPORATIONS ARE MOVING QUICKLY TO EXPLOIT THE DATA NETWORK THE INTERNET IS AN ENORMOUS BUSINESS OPPORTUNITY I BELIEVE SAYS NSF NETWORKING DIRECTOR STEVEN S WOLFF MANY VIEW THE INTERNET AS A FORERUNNER OR PROTOTYPE OF THE FUTURISTIC INFORMATION SUPERHIGHWAY THAT THE CLINTON ADMINISTRATION ENVISIONS VICE PRESIDENT AL GORE YESTERDAY UNVEILED A PLAN TO COORDINATE PRIVATEINDUSTRY EFFORTS TO BUILD A HIGHSPEED MULTIMEDIA DATA NETWORK WITH THE FEDERAL GOVERNMENT CONTRIBUTING FUNDS TOWARD RESEARCH AND DEVELOPMENT EVENTUALLY SCHOOLS LIBRARIES BUSINESSES HOSPITALS AND INDIVIDUALS WOULD ALL BE CONNECTED TO THE PRIVATELY MANAGED NETWORK IN WHICH VOICE TEXT AND VIDEO COULD ALL BE TRANSMITTED PRESUMABLY THE INTERNET WITH ITS ALREADY EXISTING CONNECTIONS WOULD BE WOVEN INTO THE NEW SUPERHIGHWAY IN THE PAST MONTH RUPERT MURDOCH'S NEWS CORP ANNOUNCED IT WILL ACQUIRE DELPHI INTERNET SERVICES INC AN ONLINE SERVICE THAT PROVIDES INTERNET ACCESS TO CONSUMERS CONTINENTAL CABLEVISION THE NATION'S THIRDLARGEST CABLETELEVISION COMPANY SAID IT WOULD BEGIN OFFERING INTERNET ACCESS TO ITS CABLE SUBSCRIBERS AND AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WOULD SOON MAKE THE INTERNET AVAILABLE TO SOME DATA COMMUNICATION CUSTOMERS VIA A NATIONWIDE TOLLFREE TELEPHONE NUMBER WHAT'S GOING ON RIGHT NOW IS THE EQUIVALENT OF A LAND RUSH SAYS PHILL GROSS CHAIRMAN OF THE INTERNET ENGINEERING TASK FORCE A VOLUNTEER BODY THAT DEALS WITH THE NETWORK'S TECHNICAL PROBLEMS COMMERCIAL COMPANIES NEW USERS THE SMALL MOMANDPOP OUTFITS THEY'RE ALL RUSHING INTO THIS NEW FRONTIER BUT DESPITE THE GROWING BANDWAGON THE INTERNET DOESN'T LEND ITSELF SO NATURALLY TO FREE ENTERPRISE THE INTERNET IS A LOOSEKNIT WEB OF THOUSANDS OF INTERCONNECTED COMPUTER NETWORKS ACROSS THE WORLD MANY OF WHICH SPEAK DIFFERENT COMPUTER LANGUAGES NO ONE OWNS THE INTERNET IT IS MANAGED BY VOLUNTEERS AND DERIVES OPERATING COSTS FROM ITS MEMBERS WHO PAY CONNECTION FEES TO REGIONAL COMPUTER HUBS THAT DIRECT TRAFFIC OR TO LOCALACCESS PROVIDERS THAT TIE INTO ITS HUBS ONCE CONNECTED INTERNET USERS CAN DIRECTLY LOG ON TO REMOTE COMPUTERS ACROSS THE NETWORK UNIVERSE AND EXCHANGE ELECTRONIC FILES USERS CAN ALSO EXCHANGE ELECTRONIC MESSAGES VIEW COMMUNAL BULLETIN BOARDS COVERING THOUSANDS OF TOPICS OR INTERACTIVELY CHAT WITH OTHER USERS ONE ISSUE FOR COMPANIES THAT WANT TO DO BUSINESS ON THE INTERNET IS SECURITY MANY COMPANIES SAY THAT THE NETWORK IS NOT SAFE ENOUGH FOR TRANSMITTING SENSITIVE DATA SUCH AS CREDITCARD INFORMATION FOR CUSTOMER ORDERS DISPUTES HAVE ALSO BROKEN OUT WITHIN THE INTERNET'S VOLUNTEER GOVERNING BODIES WITH SOME MEMBERS ACCUSING OTHERS OF REPRESENTING ONLY THE BEST INTERESTS OF THEIR COMPANIES AT THE SAME TIME EDUCATORS AND RESEARCHERS ARE WORRIED THAT AS BUSINESSES MOVE IN THEY WILL BE PUSHED ASIDE THERE IS TERRIBLE ANXIETY THERE IS RABID PARANOIA SAYS MIKE ROBERTS VICE PRESIDENT FOR NETWORKING AT EDUCOM AN ASSOCIATION OF 600 COLLEGES AND UNIVERSITIES THAT STUDIES INFORMATION TECHNOLOGY IN HIGHER EDUCATION MEANWHILE OTHER LONGTIME USERS FRET THAT THE INTERNET LONG A HAVEN FOR UNCENSORED NOHOLDSBARRED DISCUSSIONS ON EVERYTHING FROM CROSSDRESSING TO CHRISTIANITY MAY END UP BECOMING A GIANT ELECTRONIC SHOPPING MALL WHAT'S BEING ATTEMPTED IS A CRIME DECLARES RONDA HAUBEN EDITOR OF THE AMATEUR COMPUTERIST A NEWSLETTER THAT IS AVAILABLE ON THE INTERNET SOMETHING VERY SIGNIFICANT AND IMPORTANT HAS BEEN CREATED IT HAS BEEN DEVELOPED WITH A GREAT DEAL OF PUBLIC AND ACADEMIC FUNDS AND EFFORT AND THERE NEEDS TO BE A SERIOUS PUBLIC EXAMINATION OF HOW TO CONTINUE NOT FREEZE THE DEVELOPMENT UNTIL A FEW YEARS AGO BUSINESS INTEREST ON THE INTERNET WAS LARGELY LIMITED TO COMPANIES' RESEARCH AND DEVELOPMENT DEPARTMENTS BUT COMMERCIAL USE IS NOW GROWING FASTER THAN RESEARCH AND DEVELOPMENT USE WITH BUSINESSES RUSHING TO HOOK UP THEIR OWN COMPUTER NETWORKS FOUR YEARS AGO HARDLY ANY COMMERCIAL ENTERPRISES USED THE INTERNET BUT AS OF MARCH 51 OF THE 34400 NETWORKS THAT HAD REGISTERED TO JOIN BELONGED TO PRIVATE BUSINESSES VERSUS 29 IDENTIFIED AS RESEARCH INSTITUTIONS AND 4 THAT ARE EDUCATIONAL ACCORDING TO THE INTERNET SOCIETY A YEAROLD GROUP WHOSE FOUNDING MEMBERS INCLUDE MORE THAN TWO DOZEN MAJOR CORPORATIONS ALTHOUGH THERE AREN'T ANY COMPREHENSIVE NUMBERS ON WHAT PERCENTAGE OF INTERNET USE IS COMMERCIAL EVEN THOSE WHO ARE WORRIED CONCEDE THAT A HIGHER PROPORTION OF THE TRAFFIC IS STILL NONCOMMERCIAL ONLY ABOUT HALF OF THE REGISTERED COMPANIES HAVE ACTUALLY HOOKED UP MANY ARE APPARENTLY TAKING NO CHANCES OF BEING LEFT OUT SHOULD THE INTERNET RUN OUT OF ELECTRONIC ADDRESSES FOR NEW NETWORKS MANY OF THE INTERNET'S CORPORATE USERS CONDUCT INTERNAL DAYTODAY BUSINESS EMPLOYEES AT INTERNATIONAL BUSINESS MACHINES CORP USE IT TO COMMUNICATE WITH CUSTOMERS AND PEERS SUN MICROSYSTEMS INC DISTRIBUTES PUBLICDOMAIN SOFTWARE TO CUSTOMERS COPYTECH PRINTING INC IN CANTON MASS RECEIVES FILES FROM CLIENTS VIA THE INTERNET THEN PRINTS SOFTWARE MANUALS AND OTHER PUBLICATIONS IT ALSO TRANSFERS FILES TO ANOTHER PRINTING COMPANY IN THE UNITED KINGDOM VIA THE NETWORK YOU DON'T HAVE TO PAY THE SHIPPING CHARGES AND GO THROUGH CUSTOMS SAYS JEFF WEENER MANAGER OF TECHNOLOGY NOT SURPRISINGLY WITH THE INTERNET USER BASE EXPANDING BY AN ESTIMATED MILLION NEWCOMERS A MONTH MARKETERS ARE BEGINNING TO VIEW THE GLOBAL NETWORK AS A POTENTIAL ELECTRONIC GOLD MINE AFTER ALL FOR VERY LITTLE COST A COMPANY CAN MAKE AVAILABLE ON THE INTERNET A GIANT DATABASE CONTAINING INFORMATION ABOUT ALL OF ITS PRODUCTS YOU DON'T NEED PERMISSION SAYS MITCHELL KAPOR FOUNDER OF LOTUS DEVELOPMENT CORP YOU DON'T NEED TO PERSUADE AN AUTHORITY TO RENT YOU SPACE IN THEIR SHOPPING MALL OR CARRY YOU ON THEIR CABLE SYSTEM BUT MR KAPOR AND OTHER INTERNET OBSERVERS CONTEND THAT IF THEY ARE TO SUCCEED MARKETERS MUST MASTER THE GLOBAL NETWORK'S UNIQUE QUIRKY NATURE MARKETING ON THE INTERNET POSES SOME RATHER INTERESTING PROBLEMS TO THE TRADITIONAL MARKETING WORLD SAYS ROB RAISCH PRESIDENT OF INTERNET CO A CAMBRIDGE MASS CONSULTING FIRM THAT ADVISES COMPANIES HOW TO DO BUSINESS ON THE INTERNET FOR STARTERS THERE TECHNICALLY IS NO WAY TO IDENTIFY WHO IS ON THE INTERNET AT ANY GIVEN TIME OR EVEN WHO HAS ACCESS TO IT AS NO COMPREHENSIVE WHITE PAGESSTYLE DIRECTORY EXISTS THE ADDRESS FORMAT NECESSARY TO SEND A MESSAGE TO ANOTHER INTERNET USER IS NOTORIOUSLY COMPLICATED THERE IS NO UNIVERSAL INTERNET USER INTERFACE WITH THE COLORFUL GRAPHICS OR HELP SCREENS THAT PERSONALCOMPUTER OWNERS FIND EASY TO USE FOR THESE AND OTHER REASONS JUST LOCATING A MERCHANT ON THE FARFLUNG NETWORK IS OFTEN LIKE DRIVING IN A FOREIGN COUNTRY WITHOUT A ROAD MAP EFFORTS ARE UNDER WAY BY THE INTERNET ENGINEERING TASK FORCE THE VOLUNTEER GROUP TO DEVELOP PRIVACY ENHANCED MAIL WHICH WOULD PREVENT INTERNET EMAIL FROM BEING INTERCEPTED OR COPIED BUT FOR NOW POTENTIAL SHOPPERS MAY BE UNDERSTANDABLY LEERY OF PLACING ORDERS BY CREDIT CARD AS THEY MIGHT OVER THE PHONE OR WITH COMMERCIAL ONLINE SERVICES SUCH AS PRODIGY OR COMPUSERVE IT'S NOT TERRIBLY LIKELY THAT SOMEONE DOING RANDOM SNOOPING WOULD PICK UP CREDITCARD NUMBERS BUT IT IS POSSIBLE SAYS TIM O'REILLY PRESIDENT OF O'REILLY & ASSOCIATES INC A PUBLISHING COMPANY IN SEBASTOPOL CALIF THAT OFFERS ITS BOOKS ON THE INTERNET HIS COMPANY ASKS CUSTOMERS TO SEND THEIR CREDITCARD INFORMATION BY FAX OR PHONE COMPANIES SUCH AS O'REILLY & ASSOCIATES ARE BEGINNING TO EXPERIMENT WITH NEW WAYS TO SELL THEIR WARES WITHOUT OFFENDING THE CONVENTIONS OF THE INTERNET CULTURE WHICH VIEWS TECHNIQUES SUCH AS DIRECT EMAIL AS AN INVASION OF PRIVACY AND DESERVING OF PUNISHMENT OFFENDERS GET A TORRENT OF VENOMOUS EMAILCALLED FLAMING AND IT ISN'T DIRECTED JUST AT THE PARTY WHO ORIGINATED THE OFFENDING MESSAGE YOU'LL HEAR BACK FROM THEM AND YOUR PRESIDENT WILL HEAR BACK FROM THEM AND YOUR SUPPLIERS WILL HEAR BACK FROM THEM SAYS MR WASHBURN OF THE COMMERCIAL INTERNET ASSOCIATION O'REILLY & ASSOCIATES WAS FLAMED LAST YEAR AFTER A NEW EMPLOYEE SENT AN UNSOLICITED EMAIL MESSAGE TO UNIVERSITY NETWORK ADMINISTRATORS TRYING TO DRUM UP PUBLICITY FOR ONE OF THE FIRM'S NEW BOOKS MR O'REILLY CALLS IT A NOVICE'S MISTAKE NOW THE COMPANY OFFERS INFORMATION ON ITS BOOKS ONLY TO THOSE WHO ASK TO JOIN A MAILING LIST OR WHO SELECT THE COMPANY FROM AN ONLINE MENU SYSTEM KNOWN AS GOPHER WHICH TRANSPORTS USERS TO DIFFERENT SERVICES AND DATABASES WHILE COLD CALLING IS STRICTLY TABOO THE INTERNET CULTURE APPEARS TO BE MORE TOLERANT OF ADVERTISING OR PRODUCT OFFERS THAT A USER HAS ACTIVELY INDICATED A DESIRE TO RECEIVE ON OCT 1 O'REILLY WILL ATTEMPT A NEW STRATEGY IT PLANS TO LAUNCH ON THE INTERNET THE GLOBAL NETWORK NAVIGATOR A FREE INFORMATION CENTER THAT WILL OFFER NEWS AND ARTICLES ABOUT THE INTERNET AS WELL AS A MARKETPLACE SECTION CONTAINING PRODUCT INFORMATION FROM PAYING ADVERTISERS SO FAR HE SAYS ABOUT A DOZEN ADVERTISERS HAVE SIGNED UP RANGING FROM HELLER EHRMAN WHITE & MCAULIFFE A SILICON VALLEY LAW FIRM TO NORDICTRACK AN EXERCISEEQUIPMENT COMPANY MR O'REILLY IS HOPEFUL THAT THE INTERNET COMMUNITY WON'T FIND THE SERVICE OBJECTIONABLE IT DOESN'T REALLY INTRUDE ON ANYBODY UNLESS PEOPLE WANT TO COME AND ACTUALLY RETRIEVE THAT INFORMATION HE SAYS OTHER COMPANIES CURRENTLY TRYING TO SELL PRODUCTS ON THE INTERNET HAVE ATTEMPTED TO AVOID ANTAGONISM BY GIVING AWAY SOME SERVICES OR INFORMATION ALONGSIDE THEIR OFFERINGS FOR SALE FOR EXAMPLE COUNTERPOINT PUBLISHING INC OF CAMBRIDGE MASS WHICH SELLS ELECTRONIC ACCESS TO THE FEDERAL REGISTER AND OTHER PUBLIC GOVERNMENT DOCUMENTS ALLOWS FREE ACCESS TO THE RECORDS OF THE COMMISSION ON CIVIL RIGHTS AND THE NATIONAL ENDOWMENT FOR THE ARTS AMONG OTHERS THE HARD SELL WOULD PROBABLY GET A LOT OF REJECTION SAYS JONATHAN ROBBINS DIRECTOR OF MARKETING SERVICES NOTING THAT THE COMPANY HAS RECEIVED ONLY A FEW COMPLAINTS THE INTERNET IS GETTING MORE COMMERCIAL AND SOME OF THE CONVENTIONS AND THE TRADITIONS ARE GOING TO FALL BY THE WAYSIDE BUT AT THE SAME TIME THE INTERNET USERS AS A COMMUNITY ARE A SPECIAL BREED HE SAYS ANOTHER NEW INTERNET COMMERCIAL OFFERING IS THE ELECTRONIC NEWSSTAND A JOINT VENTURE OF NEW REPUBLIC INC AND INTERNET CO WHICH TRIES TO SELL SUBSCRIPTIONS TO A VARIETY OF MAGAZINES INCLUDING THE NEW YORKER THE ECONOMIST AND NATIONAL REVIEW MANY OF THE PUBLICATIONS OFFER SAMPLE ARTICLES TO LURE NEW SUBSCRIBERS WHILE THE NEW REPUBLIC OFFERS THE COMPLETE TEXT OF EACH ISSUE WHILE IT IS ON NEWSSTANDS JEFF DEARTH PRESIDENT OF THE NEW REPUBLIC SAYS HE BELIEVES ONLINE READERS OF HIS MAGAZINE SOONER OR LATER WILL SUBSCRIBE HE CONCEDED HOWEVER THAT IN THE FIRST SIX WEEKS OF THE SERVICE THE MAGAZINE RECEIVED FEWER THAN 30 NEW SUBSCRIPTIONS FROM INTERNET USERS WHILE THE ELECTRONIC NEWSSTAND HAD UP TO 8000 ONLINE VISITORS A DAY PLEASE DON'T EVALUATE US ON ORDERS BASED ON SIX WEEKS HE SAYS THIS IS SOMETHING THAT'S GOING TO GROW OVER THE NEXT DECADE MOREOVER HE NOTED WE HAVE NOT RECEIVED A SINGLE FLAME ABOUT OUR COMMERCIAL VENTURE IN RECENT MONTHS HOWEVER EMAIL INSULTS HAVE BEEN TRADED AMONG MEMBERS OF THE INTERNET ENGINEERING TASK FORCE WHICH DEALS WITH SUCH TECHNICAL ISSUES AS THE FEARED SHORTAGE OF NEW USER ADDRESSES A RESULT OF THE NETWORK'S RAPID GROWTH WHILE IN THE PAST MEMBERS ROUTINELY CLASHED OVER THE TECHNICAL MERITS OF PROPOSED NEW INTERNET STANDARDS IT WAS ALWAYS ASSUMED THAT EVERYONE WAS THERE TO DO WHAT WAS RIGHT FOR THE INTERNET SAYS ED KROL AUTHOR OF THE WHOLE INTERNET A USER'S GUIDE BUT AS THE INTERNET HAS GROWN SO HAS THE TASK FORCE INCREASING FROM AN ORIGINAL 15 MEMBERS IN 1986 TO 700 MEMBERS TODAY AT LEAST HALF OF WHOM REPRESENT PRIVATE COMPANIES LATELY MR KROL SAYS TASKFORCE MEMBERS HAVE ACCUSED COLLEAGUES WHO REPRESENT THESE COMPANIES OF HAVING THE BEST NTEREST OF THEIR EMPLOYERS IN MIND NOT THE INTERNET THERE IS A LOT MORE DISTRUST SAYS MR KROL MR GROSS WHO CHAIRS THE TASK FORCE SAYS THAT WHILE TENSIONS ARE HIGHER THE GROUP REMAINS DEMOCRATIC SAYING THAT INDIVIDUAL COMPANIES DO NOT DOMINATE THE WAY THEY DO IN OTHER STANDARDS ORGANIZATIONS WILL THAT CHANGE MAYBE IN FIVE YEARS SAYS MR GROSS AFTER A LOT OF EVOLUTION 9309160059 930916 WHO'S NEWS GILLETTE CO GILLETTE CO BOSTON PETER K HOFFMAN WAS NAMED PRESIDENT OF THIS PERSONAL PRODUCTS CONCERN'S BRAUN US UNIT AND GROUP GENERAL MANAGER BRAUN NORTH AMERICA ANOTHER UNIT EFFECTIVE OCT 1 MR HOFFMAN 44 YEARS OLD SUCCEEDS JORGEN WEDEL WHO WAS NAMED PRESIDENT OF THE COMPANY'S ORALB LABORATORIES UNIT MR HOFFMAN WAS MOST RECENTLY VICE PRESIDENT BUSINESS MANAGEMENT FOR THE NORTH ATLANTIC GROUP 9309160058 930916 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP EIGHT BIDS ARE SUBMITTED IN POSSIBLE AUCTION OF FIRM RODMAN & RENSHAW CAPITAL GROUP INC SAID THAT IT RECEIVED EIGHT PROPOSALS IN WHAT AMOUNTS TO A POSSIBLE AUCTION OF THE BROKERAGE OPERATION RODMAN HAS SAID IT WON'T DISCLOSE THE IDENTITY OF THE INTERESTED PARTIES WHICH SUBMITTED PROPOSALS TO ITS FINANCIAL ADVISER ROTHSCHILD INC NOR WOULD IT DISCLOSE THE PRICE RANGE FROM THE BIDDERS THE COMPANY SAID ITS BOARD WITH ROTHSCHILD WILL PROMPTLY REVIEW THESE PROPOSALS AND IF APPROPRIATE SELECT A LIMITED NUMBER OF PARTIES TO PARTICIPATE IN A FINAL ROUND OF DUE DILIGENCE AND NEGOTIATIONS LOS ANGELES INVESTOR MARSHALL GELLER HAS PUT TOGETHER A 99 STAKE AND HAS URGED THE OUSTER OF MANAGEMENT FOR FAILING IN HIS VIEW TO MAXIMIZE SHAREHOLDER VIEW JOSEPHTHAL LYON & ROSS A NEW YORK BROKERAGE FIRM PROPOSED A MERGER BUT THAT BID HAS LAPSED AND THE BROKERAGE FIRM OF FAHNESTOCK VINER HOLDINGS INC CONFIRMED THAT IT HELD PRELIMINARY TALKS WITH RODMAN IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY RODMAN SHARES CLOSED UP 125 CENTS AT 8875 9309160057 930916 BUSINESS BRIEF AST RESEARCH INC TANDY UNITS TO BE ACQUIRED FOR 35 LESS THAN EXPECTED AST RESEARCH INC SAID IT WILL PAY ABOUT 115 MILLION OR ABOUT 35 LESS THAN EXPECTED FOR ITS ACQUISITION OF TANDY CORP'S PERSONALCOMPUTER MANUFACTURING OPERATIONS THE IRVINE CALIF PC MAKER SAID THAT AFTER AN AUDIT OF TANDY'S ASSETS AND LIABILITIES A PRICE WAS SET AT 105 MILLION NOT INCLUDING AST'S PLANNED PURCHASE OF TANDY'S TANDY/GRID FRANCE UNIT AST SAID IT EXPECTS TO CLOSE ITS ACQUISITION OF THE FRENCH UNIT IN OCTOBER FOR LESS THAN 10 MILLION PAYABLE IN THE FORM OF A PROMISSORY NOTE THE TOTAL PRICE OF UNDER 115 MILLION REPRESENTS A BIG DROP FROM THE 175 MILLION AST SAID IT EXPECTED TO PAY FOR THE TANDY OPERATIONS WHEN IT ANNOUNCED THE DEAL IN MAY UNDER THE FINAL TERMS AST HAS PAID 15 MILLION IN CASH AND HAS ISSUED A 90 MILLION THREEYEAR PROMISSORY NOTE TO TANDY AST SAID THE PRICE IS LOWER THAN ANTICIPATED PRIMARILY BECAUSE IT ACQUIRED FEWER ASSETS AND ASSUMED MORE TRADE ACCOUNT PAYABLES THAN EXPECTED 9309160056 930916 TREASURY PLANS TO RAISE 475 BILLION IN CASH WITH SALE OF NOTES WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 475 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 16 BILLION OF TWOYEAR NOTES ON TUESDAY AND 11 BILLION OF FIVEYEAR NOTES ON WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 2258 BILLION IN MATURING TWOAND FIVEYEAR NOTES THE NEW TWOYEAR NOTES WILL BE DATED SEPT 30 AND MATURE SEPT 30 1995 THE NEW FIVEYEAR NOTES WILL BE DATED SEPT 30 AND WILL MATURE SEPT 30 1998 THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827M33 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827M41 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EDT NEXT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9309160055 930916 NFL NETWORKS SUED OVER TV BLACKOUTS BY GROUP OF DEAF FANS CLEVELAND A GROUP OF HEARINGIMPAIRED SPORTS FANS BROUGHT SUIT AGAINST THE NATIONAL FOOTBALL LEAGUE AND THREE TELEVISION NETWORKS CHARGING THAT THEY DISCRIMINATE AGAINST THE DEAF BY ENFORCING A BLACKOUT RULE ON TELEVISED GAMES THE SUIT WAS FILED SEPT 15 IN FEDERAL COURT HERE ON BEHALF OF THOMAS STOUTENBOROUGH TWINSBURGH OHIO AND SELFHELP FOR HARD OF HEARING AN ADVOCACY GROUP FOR HEARINGIMPAIRED PEOPLE THE SUIT SEEKS CLASSACTION STATUS UNTIL 20 YEARS AGO THE NFL BLACKEDOUT TELECASTS IN THE HOME TEAM'S AREA TO ENCOURAGE FANS TO BUY TICKETS TO THE EVENT RATHER THAN WATCH IT ON TELEVISION IN 1973 CONGRESS MANDATED THE NFL TO TELECAST GAMES THAT SELL OUT 72 HOURS BEFORE KICKOFF THE LAW LAPSED IN 1975 BUT THE NFL STILL ADHERES TO THE 72HOUR POLICY BLACKEDOUT GAMES ARE BROADCAST OVER RADIO THE SUIT CHARGES THE BLACKOUT RULE DISCRIMINATES AGAINST THE DEAF BECAUSE THEY ARE UNABLE TO HEAR RADIO BROADCASTS OF GAMES THE POLICY VIOLATES THE AMERICANS WITH DISABILITIES ACT OF 1990 AMONG OTHER LAWS THE SUIT ALLEGES THE SUIT SEEKS INJUNCTIVE REFLIEF AS WELL AS DAMAGES IN EXCESS OF 350 MILLION OTHER DEFENDANTS INCLUDE THE TELEVISION NETWORKS OF CAPITAL CITIES/ABC INC CBS INC AND GENERAL ELECTRIC CO THE NFL AND ABC HAD NO COMMENT CBS AND NBC COULDN'T BE REACHED 9309160054 930916 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO HOMEOFFICE FURNITURE NOT QUITE READY FOR PRIME TIME AT SEARS ROEBUCK & CO READYTOASSEMBLE PRODUCTS FOR THE HOME OFFICE COMMANDS 9 OF TOTAL FURNITURE SALES AND IKEA THE SWEDISHOWNED CHAIN NEXT YEAR PLANS SPECIAL PROMOTIONS FOR OFFICE FURNISHINGS BUT RHODES INC IN ATLANTA SEES NO RISE IN DEMAND FOR SUCH ITEMS DEMAND HASN'T BEEN SUFFICIENT FOR US TO DEVOTE THE FLOOR SPACE AND THE DOLLARS TO IT IN A BIG WAY SAYS DONALD PARKER SENIOR VICE PRESIDENT BRITT BEEMER A CHARLESTON SC CONSULTANT SAYS SALES IN THE CATEGORY ARE GROWING 9 A YEAR IN UNIT TERMS BUT ONLY 4 IN DOLLAR TERMS MOST OF THE SALES HAVE BEEN IN THE LOWERPRICED READYTOASSEMBLE PIECES NOT USUALLY CARRIED BY TRADITIONAL FURNITURE STORES MANY PEOPLE DON'T HAVE ROOM TO DEDICATE TO A HOME OFFICE HE SAYS OFTEN THE READYTOASSEMBLE PRODUCT IS THE ONLY ONE THAT CAN FIT THE SPACE FURNITURE MAKERS ARE WORKING ON HOME FRIENDLY PIECES ONE STREAMLINED DESIGN IS A DESK WITH THE COMPUTER MONITOR PLACED UNDER A GLASS DESKTOP EMPLOYERS LOOK INTO A BIGGER ROLE IN SETTING UP THE HOME OFFICE STEELCASE INC AND GEIGER INTERNATIONAL INC FURNITURE MAKERS BRANCHING INTO THE HOMEOFFICE MARKET REPORT INQUIRIES FROM BIG CORPORATE CLIENTS WALLACE EPPERSON AN ANALYST IN VIRGINIA SAYS FIRMS ARE STARTING TO WORRY ABOUT LIABILITY FOR INJURIES LIKE CARPALTUNNEL SYNDROME AMONG EMPLOYEES WORKING AT HOME IT MAKES SENSE TO SUPPLY FURNITURE TO AVOID LIABILITY AND GET THE BEST PRODUCTIVITY SAYS A MANAGER OF A COMMUNICATIONS FIRM THE COMPANY WHICH CONSIDERS A BUYING PROGRAM FOR HOMEOFFICE FURNITURE RECENTLY BEGAN SUPPLYING SURPLUS OFFICE DESKS AND CHAIRS TO WORKATHOME EMPLOYEES BUT GIL GORDON A NEW JERSEY CONSULTANT SAYS SUCH COMPANIES ARE RARE CONCERN ABOUT COMPANY LIABILITY IN THE HOME HAS BECOME MORE EVIDENT IN THE PAST SIX MONTHS BUT I HAVEN'T SEEN IT TRANSLATED INTO EMPLOYERS RUSHING TO BUY FURNITURE NEW ON THE MENU TAKEOUTDELIVERY FIRMS DISH OUT MARKETING SERVICES AS WELL SOME FIRMS WHICH DELIVER TAKEOUT MEALS FOR SEVERAL RESTAURANTS IN AN AREA DIVERSIFY INTO PROMOTIONS TAILORED TO SPECIFIC RESTAURANT CLIENTS TAPPING THE SAME SOFTWARE AND EQUIPMENT THEY USE TO TAKE AND TRACK ORDERS THESE SERVICES KEEP A DATABASE OF CUSTOMERS DO DEMOGRAPHIC ANALYSIS AND MAIL PROMO PIECES A LA CARTE EXPRESS IN WASHINGTON GEARS UP TO IDENTIFY HIGHORDER CUSTOMERS FOR A CHRISTMAS CARD MAILING DININGIN BOSTON PITCHED A RESTAURANT'S TAKEOUT DINNER TO PRICE WATERHOUSE WORKERS LAST TAX SEASON TAKEOUT TAXI A HERNDON VA SERVICE THAT HAS 71 FRANCHISEES TRACKS DINERS AS WELL AS TAKEOUT CUSTOMERS FOR THE SILVER DINER CHAIN IN MARYLAND THE FIRM GATHERS DATA ON DINERS VIA COMMENT CARDS NOTING FREQUENCY AND DINING TIME THEY DO IT FOR ONETHIRD THE COST TO US IF WE DID IT SAYS ROBERT GIAMO SILVER DINER'S OWNER DELIVERY COMPANIES NUMBER 800 FROM UNDER A DOZEN IN THE LATE 1980S SAYS PETER HETHERINGTON OF MEAL DELIVERY DIGEST IN LAGUNA NIGUEL CALIF TOY TALLY UNDER20 PLAYTHINGS AND DINOSAUR LICENSEES PUT SOME ZIP IN TOYS THIS YEAR BUT SALES WON'T APPROACH THE 12 BANNER JUMP POSTED IN 1992 SAYS THE DURACELL TOY INDUSTRY FORECAST NEARLY TWOTHIRDS OF 21 INDUSTRY WATCHERS POLLED SAW SALES OF 14 AND THE REMAINDER 510 MINTS AFTER MEALS GET A NOVEL SPIN FROM WARNERLAMBERT CO WHICH EXPLORES THE USE OF MOUTHWASH AMONG LUNCHGOERS IN A 12DAY TRIAL SIX RESTAURANTS IN DALLAS AND BALTIMORE ARE GIVING PATRONS THE GARGLE IN TINY BOTTLES AND THROUGH RESTROOM DISPENSERS THE TEST WAS PROMPTED BY A SURVEY OF LUNCHGOERS SHOWING THAT 68 WOULD USE MOUTHWASH IF IT WERE CONVENIENT THE ELEVATOR MUSIC' BUSINESS IS CHANGING ITS TUNE A FLEDGLING RIVAL MAY PUMP UP THE VOLUME IN THE SEDATE BUSINESS OF BACKGROUND MUSIC THE BIGGEST PURVEYORS OF SUCH MUSIC MUZAK LP AND AEI MUSIC NETWORK INC BOTH OF SEATTLE ARE KEEPING AN EYE ON LOS ANGELESBASED INTERNATIONAL CABLECASTING TECHNOLOGIES INC WHICH PROVIDES CDQUALITY MUSIC VIA CABLE ONLY 5 OF US BUSINESSES USE MUZAKTYPE SERVICE WHICH LEAVES MOST OF THE MARKET AVAILABLE SAYS LON TROXEL OF ICT'S COMMERCIAL GROUP BECAUSE MANY BUSINESSES AREN'T WIRED FOR CABLE ICT NEXT YEAR PLANS TO START SATELLITE BROADCASTS OF ITS SERVICE THE OLDTIMERS SAY THEY ARE NOT WORRIED AEI WHICH CUSTOMIZES A MIX OF MUSIC FOR ITS CLIENTS SAYS ITS PRODUCT DIFFERS FROM THAT OF ICT WHICH OFFERS 30 CHANNELS BUT CHANGES ARE AFOOT MUZAK PUSHES PRODUCTS OTHER THAN MUSIC SUCH AS INSTORE MARKETING AND DATA COMMUNICATIONS IN A FEW YEARS THEY WILL SOON ACCOUNT FOR 50 OF SALES FROM 15 TODAY MUZAK SAYS MUZAK'S SUBSCRIBERS NUMBER 200000 VS 70000 FOR AEI AND 7000 FOR ICT BRIEFS OF FIELD'S AND STREAMS THE BRIDAL REGISTRY NUMBER FOR CHICAGO'S MARSHALL FIELD'S IS 18002I DO I DO NIAGARA MOHAWK POWER CORP'S TELEPHONE HOT LINE GIVES ANGLERS ROUNDTHECLOCK REPORTS ON FLOWS AT WEST CANADA CREEK A POPULAR TROUT STREAM IN NEW YORK 9309160052 930916 BUSINESS BRIEF CIRCUIT CITY STORES INC ELECTRONICS RETAILER'S PROFIT JUMPED IN FISCAL 2ND PERIOD CIRCUIT CITY STORES INC RICHMOND VA A RETAILER OF CONSUMER ELECTRONICS AND APPLIANCES REPORTED A 30 INCREASE IN NET INCOME FOR THE SECOND QUARTER ENDED AUG 31 HELPED BY THE ADDITION OF NEW SUPERSTORES IN MAJOR MARKETS NET ROSE TO 28 MILLION OR 29 CENTS A SHARE FROM 215 MILLION OR 22 CENTS A SHARE A YEAR EARLIER THE COMPANY SAID THE CHANGE IN THE FEDERAL TAX RATE HAD A FAVORABLE IMPACT OF 15 MILLION OR TWO CENTS A SHARE ON EARNINGS BECAUSE OF ADJUSTMENT OF DEFERRED TAX ASSETS SALES ROSE 26 TO 9067 MILLION FROM 7213 MILLION IN THE QUARTER CIRCUIT CITY ADDED TWO MORE SUPERSTORES IN BOSTON AND ITS FIRST FOUR SUPERSTORES IN THE CHICAGO AREA AS WELL AS ADDING MORE IN PHILADELPHIA AND TUCSON ARIZ 9309160050 930916 BUSINESS BRIEF BORDEN INC COMPANY TO PAY 52 MILLION TO SETTLE ANTITRUST CHARGES BORDEN INC NEW YORK SAID IT WILL PAY 5 MILLION TO SETTLE FEDERAL CRIMINAL ANTITRUST CHARGES AND 200000 TO SETTLE CIVIL CHARGES RELATED TO THE FIXING OF MILK PRICES IN ALABAMA GEORGIA AND MISSISSIPPI BORDEN SAID THE SETTLEMENT WHICH WAS REACHED CONCURRENTLY WITH THE FILING OF A LAWSUIT BY THE JUSTICE DEPARTMENT ON THE CHARGES WON'T HAVE ANY MATERIAL IMPACT ON CURRENT YEAR EARNINGS BECAUSE THE COMPANY ALREADY ACCOUNTED FOR POTENTIAL LIABILITIES BORDEN ADDED THAT IT HAS COOPERATED FULLY WITH GOVERNMENT OFFICIALS IN THE INVESTIGATIONS THIS YEAR BORDEN AGREED TO PAY 8 MILLION TO THE FEDERAL GOVERNMENT AFTER PLEADING GUILTY TO CRIMINAL CHARGES OF MILK PRICEFIXING IN TEXAS 9309160049 930916 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG REMEMBER THAT STAR TREK MOVIE WHERE MR SCOTT THE CHIEF ENGINEER OF THE ORIGINAL STARSHIP ENTERPRISE IS SENT BACK IN TIME TO THE PRESENT DAY AND TRIES TO WORK A MACINTOSH BY JUST TALKING TO IT HE DRAWS THE MOUSE NEAR HIS MOUTH AND SAYS COMPUTERBUT NOTHING HAPPENS WELL I'M WRITING THIS COLUMN ON A BRANDNEW MACINTOSH THAT APPLE COMPUTER SAYS IS SUPPOSED TO ACTUALLY WORK THAT WAY BUT I'M HAVING ABOUT AS MUCH LUCK AS THE MOVIE CHARACTER SOMETIMES THE PRICEY NEW MACINTOSH CENTRIS 660AV UNDERSTANDS SIMPLE SPOKEN COMMANDS LIKE COMPUTER CLOSE WINDOW OR COMPUTER WHAT TIME IS IT BUT JUST AS OFTEN MY DICTATES ARE MET WITH A STINGING PARDON ME UTTERED IN A ROBOTLIKE VOICE WORSE THE THING OFTEN MISINTERPRETS MY WORDS ALTOGETHER FOR INSTANCE I TRIED TELLING IT TO CLICK AND IT THOUGHT I SAID CLEAR SO IT WIPED OUT MY WORK FINALLY IN FRUSTRATION I TOLD IT TO SHUT UP IT RESPONDED BY ASKING IF I REALLY WANTED IT TO SHUT DOWN WHEN I SAID NO IT REPLIED WELL NEVER MIND THEN JUST WHAT I NEED MORE LIP IN MY LIFE I HAVE HAD CALMER TIMES IN RECENT DAYS TRYING OUT A COUPLE OF OTHER LESS AMBITIOUS NEW COMPUTERS COMPAQ COMPUTER'S LOWCOST PRESARIO 425 MEANT FOR FAMILY USE AND DELL COMPUTER'S HIGHEND DIMENSION XPS MEANT FOR SERIOUS TECHIES BUT EACH HAS ITS OWN DOWNSIDES I'LL GIVE A BRIEF RUNDOWN ON THEM THEN RETURN TO THE TALKING APPLE COMPAQ PRESARIO 425 THIS IS A 1400 ONEPIECE UNIT WITH A BUILTIN SHARP 14INCH COLOR SCREEN AND PLENTY OF BUILTIN SOFTWARE IN ESSENCE IT IS AN EFFORT TO PACKAGE A POWERFUL IBMCOMPATIBLE PC AS A HOME APPLIANCE BUT UNDER ITS FRIENDLY SKIN THIS PRESARIO STILL BEARS VESTIGES OF THE BAD OLD COMPLICATED IBMCOMPATIBLE PAST THE MACHINE IMPRESSED ME IMMEDIATELY WITH ITS QUICK EASY SETUP THE PRESARIO REQUIRES ONLY THAT YOU PULL IT OUT OF THE BOX CONNECT A KEYBOARD MOUSE AND POWER CORD VIA CLEARLY MARKED SOCKETS PLUG IT INTO AN ELECTRIC OUTLET AND PUSH A SINGLE BUTTON SO FAR SO GOOD BUT THEN THE MACHINE DISAPPOINTED ME INSTEAD OF INSTANTLY DISPLAYING A FRIENDLY SOFTWARE MENU OR TUTORIAL LIKE MANY OTHER HOMEORIENTED PCS THE PRESARIO LAUNCHES INTO A 10TO15MINUTE SOFTWARE SETUP PROCESS DURING WHICH THE SCREEN AT TIMES DISPLAYS EITHER LINES OF COMPUTERESE OR VIRTUALLY NOTHING AT ALL THE USER ISN'T ASKED TO DO MUCH BUT THE WHOLE PROCESS SENDS A SIGNAL THAT IS THE OPPOSITE OF THE FRIENDLY IMAGE COMPAQ SEEKS INSIDE THERE IS A GENEROUS 200MEGABYTE HARD DISK FOUR MEGABYTES OF MEMORY AND SOFTWARE TO HANDLE MOST BASIC COMPUTING TASKS INCLUDING THE EXCELLENT QUICKEN PERSONAL FINANCE PROGRAM AND THE PRODIGY AND AMERICA ONLINE SERVICES THE BUILTIN MODEM NOT ONLY CONNECTS TO SUCH SERVICES BUT CAN SEND AND RECEIVE FAXES AND EVEN CAN SERVE AS A TELEPHONE ANSWERING MACHINE IT'S TOO BAD THE MACHINE LACKS INTERNAL SPACE FOR A CDROM DRIVE A POPULAR HOMECOMPUTING OPTION THAT MEANS PARENTS LOOKING TO RUN ELECTRONIC ENCYCLOPEDIAS AND OTHER MULTIMEDIA SOFTWARE ON CDS WILL NOT ONLY HAVE TO INVEST 500 TO 600 FOR A CDROM DRIVE AND SOUND CARD BUT ALSO WILL HAVE TO OPEN UP THE PRESARIO TO INSTALL THEM ANOTHER THROWBACK TO COMPUTER COMPLEXITY MY VERDICT IS THAT THE PRESARIO 425 IS A PRETTY GOOD HOME PC AND A PRETTY GOOD FIRST STEP FOR COMPAQ IN ITS MAJOR NEW EFFORT TO UNSEAT APPLE AS THE LEADER IN EASYTOUSE PCS FOR FAMILIES AND SMALL FIRMS BUT THE COMPANY HAS A LONG WAY TO GO DELL DIMENSION XPS THERE IS ANOTHER CLASS OF USERS THAT ACTUALLY LIKE COMPLEXITY ENJOY FIDDLING AROUND IN THE INNARDS OF THEIR PCS AND CARE MAINLY ABOUT HAVING THE FASTEST AND BIGGEST WIDGETS INSIDE FOR THEM DELL HASUILT A SCREAMER THIS MACHINE COMES IN MANY CONFIGURATIONS BUT I HAVE BEEN TESTING A MODEL WITH A STAGGERING 16 MEGABYTES OF MEMORY A HUGE 450MEGABYTE HARD DRIVE A BLAZING 486 DX2 PROCESSOR CHIP THAT RUNS AT 66 MEGAHERTZ AND A VIDEO SYSTEM CALLED VIPER THAT SPEEDS UP THE MACHINE EVEN MORE THIS MODEL WHICH COSTS 3200 ALSO INCLUDES A FAST CDROM DRIVE AND PLENTY OF EXPANSION ROOM IT ALL WORKED FINE FOR ME BUT IT ISN'T FOR NOVICES MACINTOSH CENTRIS 660AV IN ADDITION TO ITS DUBIOUS SPEECHRECOGNITION FEATURE THIS MACHINE IS ONE OF THE FASTEST AND MOST POWERFUL MACS EVER MADE THE CONFIGURATION I AM TESTING WHICH IS BEING ADVERTISED IN NEW YORK THIS WEEK FOR ABOUT 3300 INCLUDES A 230MEGABYTE HARD DISK EIGHT MEGABYTES OF MEMORY A FAST CDROM DRIVE AND ALL OF THE USUAL MACINTOSH FEATURES LIKE BUILTIN NETWORKING IN ADDITION THE PACKAGE I TRIED INCLUDES A VERY COOL OPTIONAL MONITOR CALLED THE AUDIOVISION WITH BUILTIN MICROPHONE AND STEREO SPEAKERS THE 660AV IS AROUND 600 MORE THAN THE NEARLY IDENTICALLOOKING CENTRIS 610 FOR THE EXTRA MONEY YOU GET A SLIGHTLY FASTER MACHINE AND A BUNCH OF AUDIOVISUAL FEATURES INCLUDING THE ABILITY TO DISPLAY TV SIGNALS AND PERFORM AS A TELEPHONE AND ANSWERING MACHINE THE CATCH IS THAT THERE IS VIRTUALLY NO SOFTWARE THAT TAKES ADVANTAGE OF THESE THINGS AND WHEN THERE IS IT PROBABLY WILL APPEAL MAINLY TO SPECIALIZED USERS DOING HIGHLEVEL VIDEO ORAUDIO PROJECTS FOR MOST USERS LOOKING FOR A FAST MAC WITH MULTIMEDIA ABILITIES I RECOMMEND STICKING WITH THE CENTRIS 610 IT NEVER PRETENDS TO BE ON STAR TREK BUT IT NEVER TALKS BACK TO YOU EITHER 9309160047 930916 ECONOMY NEW YORK AND ITS NEIGHBORS STILL HURT BY THE RECESSION SCRAMBLE TO SAVE JOBS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE NATIONAL GOVERNORS ASSOCIATION SAID RECENTLY THAT STATES ARE UNDER PRESSURE TO TAKE WHATEVER STEPS ARE NECESSARY TO SUPPORT JOB CREATION IT DIDN'T HAVE TO LOOK FURTHER THAN THE TRISTATE REGION OF NEW YORK NEW JERSEY AND CONNECTICUT NEW YORK FOR INSTANCE IS HOPING TO SAVE A FEW THOUSAND JOBS BY OFFERING INCENTIVES FOR A NEW TENANT TO TAKE OVER A MANUFACTURING PLANT THAT SOON WILL BE ABANDONED BY INTERNATIONAL BUSINESS MACHINES CORP IN NEW JERSEY THE STATE'S ECONOMIC DEVELOPMENT AUTHORITY HAS KEPT GENERAL ELECTRIC CO'S AEROSPACE DIVISION FROM MOVING JOBS TO PENNSYLVANIA BY BUILDING IT A NEW PLANT IN CAMDEN AND CONNECTICUT IS HELPING ITS BELEAGUERED DEFENSE INDUSTRY GIVING KAMAN CORP 3 MILLION FOR EXAMPLE TO MARKET A NEW HELICOPTER FOR COMMERCIAL USE ALTHOUGH THE NATION AS A WHOLE IS STARTING TO SEE SOME GROWTH IN PRIVATESECTOR JOBS THESE THREE STATES ARE STILL REELING FROM THE RECESSION THEY CONTINUE TO LOSE NONFARM PRIVATESECTOR JOBS ALBEIT NOT AT THE RATE OF A FEW YEARS BACK AS A RESULT THE THREE STATES ARE SCRAMBLING TO SAVE JOBS AND THEIR EFFORTS INCLUDE SOME INTENSE COMPETITION TO ENTICE EACH OTHERS' COMPANIES TO JUMP STATE LINES NEVER BEFORE HAVE THESE STATES COMMITTED AS MUCH OF THEIR OWN REVENUE OR HAD MORE JOBS PROGRAMS RANGING FROM OFFERS OF LOWINTEREST LOANS AD TAX BREAKS TO TWISTING UTILITIES' ARMS FOR CHEAP POWER LAST WEEK NEW YORK PACKAGED ITS JOBS PROGRAMS INTO A 124PAGE ECONOMIC DEVELOPMENT PLAN BOOKLET THAT BOASTED OF JOB RETRAINING DEFENSE DIVERSIFICATION TEACHING QUALITY MANAGEMENT TO SMALL COMPANIES HELPING FIRMS FIND EXPORT MARKETS AND PROMOTING PRODUCT DEVELOPMENT THROUGH ADVANCED TECHNOLOGY CENTERS VINCENT TESE ECONOMIC DEVELOPMENT DIRECTOR FIGURES PROGRAMS SUCH AS THESE HAVE SAVED OR CREATED AT LEAST 130000 JOBS SIMILARLY CONNECTICUT HAS GONE TO THE AID OF MORE THAN 400 COMPANIES SINCE INITIATING A BEVY OF NEW FINANCIAL ASSISTANCE PROGRAMS IN 1991 WHEN WE USED TO LOSE COMPANIES AND JOBS WE'D SAY THAT'S OK THERE ARE PLENTY OF JOBS STILL HERE SAYS JOSEPH COHEN AN OFFICIAL OF THE ECONOMIC DEVELOPMENT CORP BUT THAT ATTITUDE HAS CHANGED THE STATE'S NEW THRUST HAS SET IN MOTION THE RETENTION OR CREATION OF MORE THAN 40000 JOBS WITHIN THE NEXT FIVE YEARS MR COHEN SAYS AND NEW JERSEY'S ECONOMIC DEVELOPMENT AUTHORITY CAN POINT TO THE CREATION OF 27000 JOBS THROUGH PROGRAMS IT STARTED SINCE REVAMPING THE SEMIAUTONOMOUS AGENCY INTO A STATE DEVELOPMENT BANK IN 1991 SAYS ANTHONY COSCIA CHAIRMAN BESIDES GUARANTEEING THE RISKIEST PORTION OF BANK LOANS THUS SPURRING MORE OF SUCH LENDING THE AGENCY POOLS BONDS OF SMALL COMPANIES INTO 50 MILLION ISSUES THAT CAN BE SOLD IN THE OPEN MARKET THERE'S NO CERTAINTY OF COURSE THAT ALL THE JOBS THE STATES BOAST THEY HAVE SAVED WOULD HAVE BEEN LOST SAYS MARIANNE CLARKE A SPECIALIST IN STATE ECONOMIC DEVELOPMENT AT THE NATIONAL GOVERNORS ASSOCIATION IT'S HARD TO SAY WHAT DIFFERENCE THEY ACTUALLY MAKE SOME COMPANIES TAKING AID MAY NOT HAVE DOWNSIZED WITHOUT IT OR COMPANIES MAY HAVE MOVED TO THE STATE WITHOUT THE INCENTIVES ONE THING IS CERTAIN HOWEVER NOW MORE THAN EVER THERE'S GREATER COMPETITION BETWEEN THE STATES SAYS JOHN SCHWARTZMAN HEAD OF MUNICIPAL BOND RESEARCH AT BANK OF NEW YORK CONNECTICUT WHICH HAS LOWERED ITS CORPORATE INCOME AND STATE SALES TAXES IN RECENT YEARS IS WORKING ON AN INDEX OF HOW IT STACKS UP IN COMPETING WITH OTHER STATES FOR JOBS IT RECENTLY ATTRACTED THE CORPORATE HEADQUARTERS OF WITCO CORP AND DUN & BRADSTREET FROM NEW YORK A 32 MILLION STATE AID PACKAGE ALONG WITH WORKER CONCESSIONS CONVINCED PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP TO KEEP 2300 JETENGINE JOBS IN THE STATE THE HARD TIMES WHAT WE CALL HERE THE GREAT RECESSION GOT EVERYONE'S ATTENTION ON POLICIES TO ATTRACT AND KEEP BUSINESS SAYS WILLIAM MCEACHERN EDITOR OF A UNIVERSITY OF CONNECTICUT QUARTERLY ECONOMIC REVIEW OF THE STATE HE SEES SOME EARLY SIGNS OF RECOVERY FOR THE STATE IN THE FORM OF INCREASED ROAD TRAFFIC WHICH USUALLY CORRELATES TO AN IMPROVING STATE ECONOMY AND IMPROVED RETAIL SALES OVER LAST YEAR BUT THIS TIME LAST YEAR CONNECTICUT LOOKED LIKE IT WAS ON A FASTER TRACK TOWARDS RECOVERY SAYS NICHOLAS PERNA CHIEF ECONOMIST FOR SHAWMUT BANK HARTFORD THE CENTRAL PORTION OF THE STATE WHICH INCLUDES HARTFORD HAS YET TO PULL OUT OF THE RECESSION IN PART BECAUSE OF THE DOWNSIZING OF COMPANIES IN THE INSURANCE AND AIRCRAFTENGINE BUSINESSES THE SOUTHEASTERN PART OF THE STATE HAS GOTTEN A BOOST FROM THE POPULARITY OF THE FOXWOODS CASINO AT LEDYARD WHICH RECENTLY DOUBLED ITS NUMBER OF EMPLOYEES TO 6000 THE AREA WAS SPARED A LOSS OF 5800 JOBS WHEN STATE LOBBYING GOT THE NAVY RECENTLY TO KEEP THE NEW LONDON SUBMARINE BASE OPEN AND WEALTHY FAIRFIELD COUNTY HAS MORE COMMUTERS THANKS TO THE RECOVERY OF WALL STREET BUT THE FINANCIAL INDUSTRY'S PROSPERITY ISN'T CREATING ENOUGH JOBS TO GIVE THE ENTIRE NEW YORK CITY METROPOLITAN AREA AN OVERALL BOOST IN THE FIRST HALF THE AREA LOST 68000 JOBS ABOUT 1 OF ITS TOTAL SAYS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY A BIG CULPRIT OFFICE CONSTRUCTION WAS OFF 20 FROM A YEAR EARLIER OUTSIDE THE CITY NEW JERSEY AND NEW YORK ARE BOTH FACING THE THREAT OF DOWNSIZING FROM MAJOR CORPORATIONS IN NEW JERSEY JOEL NAROFF CHIEF ECONOMIST FOR FIRST FIDELITY BANCORP IN NEWARK SAYS CUTBACKS IN THE PHARMACEUTICAL INDUSTRY ARE JUST BEGINNING AND WILL CONTINUE DUE TO KNOCKOFF DRUGS AND THE PRESIDENT'S HEALTH PLAN THE STATE'S 51400 JOBS IN THE PHARMACEUTICAL SECTOR MAKE UP ONEFIFTH OF THE INDUSTRY TOTAL HE EXPECTS THE STATE'S OVERALL JOB DECLINE TO TAPER OFF THIS YEAR AND TURN TO A SLIGHT GROWTH TOWARD THE END OF NEXT YEAR MEANTIME MR TESE'S OFFICE IS GEARING UP TO TRY TO SAVE THOUSANDS OF JOBS IN ROCHESTER NY THAT EASTMAN KODAK CO PLANS TO ELIMINATE AND TO TRY TO KEEP HIGHTECH JOBS IN THE HUDSON VALLEY WHERE IBM PLANS LARGESCALE LAYOFFS IN NEW YORK HOWEVER BANKERS ARE SEEING SOME SIGNS OF STRENGTH JIM MENZIES PRESIDENT OF KEY BANK NEW YORK ALBANY SAYS THAT CONSUMER LOAN VOLUME IS REACHING NEW HIGHS ALTHOUGH BUSINESSES ARE LIMITING BORROWING TO PRODUCTIVITYENHANCING MACHINERY MR TESE TOO IS COUNTING HIS BLESSINGS WHICH INCLUDE A MUCH MORE COMPETITIVE MANUFACTURING SECTOR THAN 10 YEARS AGO AND STEPPED UP TRADE WITH CANADA DAVID HENSLEY A REALESTATE ANALYST WITH SALOMON BROTHERS ISN'T AS QUICK TO SAY NEW YORK IS OUT OF THE WOODS HE NOTES THAT EVEN THE HARDHIT STATE OF MASSACHUSETTS IS SHOWING MORE PROGRESS THE MOST OPTIMISTIC STATEMENT I CAN MAKE IS THAT NEW YORK IS STABILIZING HE SAYS 9309160045 930916 WHO'S NEWS ASK FOUNDER KURTZIG TO LEAVE FIRM AGAIN MOUNTAIN VIEW CALIF SANDRA KURTZIG FOUNDER OF ASK GROUP INC HAS RESIGNED FROM THE SOFTWARE CONCERN FOR THE SECOND TIME IN EIGHT YEARS MS KURTZIG WHO STEPPED DOWN AS ASK'S CHIEF EXECUTIVE LAST YEAR AND INDICATED SHE WOULD EVENTUALLY LEAVE THE COMPANY SAID SHE RESIGNED FROM HER POST AS CHAIRMAN MS KURTZIG 46 YEARS OLD SAID SHE WILL REMAIN AS A CONSULTANT TO THE COMPANY BUT WILL SPEND MOST OF HER TIME ON OTHER BUSINESS OPPORTUNITIES INCLUDING VENTURECAPITAL INVESTMENTS MS KURTZIG WHO TURNED A 2000 INVESTMENT AND A BEDROOM OFFICE IN HER HOME IN 1972 INTO A SOFTWARE GIANT ATTEMPTED TO RETIRE IN 1985 BUT SHE WAS CALLED BACK BY ASK'S BOARD FOUR YEARS LATER TO ENGINEER A TURNAROUND IN THE THREE SUBSEQUENT YEARS THE COMPANY'S REVENUE GREW TO 432 MILLION IN THE FISCAL YEAR ENDED JUNE 30 1992 FROM 186 MILLION IN FISCAL 1989 SALES HAVE SLIPPED SOMEWHAT SINCE LAST YEAR WHEN SHE HIRED A TOP EXECUTIVE FROM DIGITAL EQUIPMENT CORP TO SUCCEED HER AS CEO BUT MS KURTZIG WHO SAID SHE HAS BEEN DOING VERY LITTLE IN THE DAYTODAY OPERATION OF ASK SAID THE COMPANY HAS GONE THROUGH A TRANSITION PERIOD AFTER SHE STEPPED DOWN AS CEO AND THAT ITS RESULTS SHOULD IMPROVE 9309160044 930916 CREDIT MARKETS ITALY'S RECORD 55 BILLION GLOBAL BOND OFFERING ATTRACTS US INVESTORS HUNTING FOR HIGHER YIELDS BY THOMAS T VOGEL JR AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE HUNT BY AMERICAN INVESTORS FOR HIGHER YIELDS KNOWS NO BOUNDARIES AS A MASSIVE GLOBAL BOND OFFERING FROM THE REPUBLIC OF ITALY SHOWS THE 55 BILLION TWOPART OFFERING WAS LAUNCHED YESTERDAY AND SHOULD BE COMPLETED SOMETIME TODAY IT IS THE LARGEST GLOBAL BOND ISSUE EVER AND PART OF A TREND AMONG EUROPEAN ISSUERS TOWARD LARGER BOND OFFERINGS WITH LONGER MATURITIES THAT ARE DENOMINATED IN US DOLLARS DESPITE OFFERING YIELDS WHICH SOME MONEY MANAGERS CONSIDERED PALTRY DEMAND WAS STRONG ENOUGH FOR UNDERWRITERS TO INCREASE THE SIZE OF THE DEAL BY 500 MILLION AND OFFER 35 BILLION OF 30YEAR BONDS AND 2 BILLION OF 10YEAR NOTES THE 10YEAR NOTES ARE LIKELY TO YIELD ABOUT 062 PERCENTAGE POINT MORE THAN US TREASURY 10YEAR NOTES OR ABOUT 598 AS OF LATE YESTERDAY SAID UNDERWRITERS THE 30YEAR BONDS ARE LIKELY TO YIELD ABOUT 080 PERCENTAGE POINT MORE THAN TREASURY BONDS OR ABOUT 677 THEY SAID BOTH YIELDS WERE AT THE LOWER END OF EXPECTATIONS EARLIER THIS WEEK WHEN THE DEAL WAS BEING MARKETED A SIGN OF STRENGTHENING DEMAND GLOBAL BONDS ARE MAMMOTH GLOBETROTTING SECURITIES THAT ARE ISSUED BY A CORPORATION OR A GOVERNMENT SIMULTANEOUSLY IN SEVERAL COUNTRIES AT ONCE AND ARE USUALLY DENOMINATED IN A SINGLE CURRENCY MOST OFTEN THE US DOLLAR THERE ARE GLOBAL BONDS IN OTHER CURRENCIES THE WORLD BANK ANNOUNCED PLANS THIS WEEK TO SELL THE FIRST GLOBAL BOND ISSUE DENOMINATED IN MARKS THE GOAL OF A GLOBAL BOND IS TO CREATE A SINGLE SECURITY THAT CAN BE TRADED IN TOKYO LONDON OR PARIS JUST AS EASILY AS IN NEW YORK ACCORDING TO THE UNDERWRITERS AMERICAN INVESTORS SNAPPED UP AS MUCH AS 40 OF BOTH PARTS OF THE ITALIAN OFFERING WITH THE REST GOING MAINLY TO EUROPEAN AND ASIAN INVESTORS PART OF THE REASON FOR THE STRONG AMERICAN DEMAND IS THE GREAT HUNT FOR HIGHER YIELDS THE SEARCH HAS BECOME MORE URGENT WITH LONGTERM US INTEREST RATES HOVERING NEAR THEIR LOWEST LEVELS IN A QUARTER CENTURY THE 30YEAR TREASURY BOND YIELDED 597 YESTERDAY DOWN FROM 598 TUESDAY AND 731 A YEAR AGO THE 10YEAR NOTE YIELDED 536 DOWN FROM 538 BEFORE THIS YEAR THE LAST TIME THE 10YEAR NOTE YIELD WAS SO LOW WAS IN THE LATE1960S ACCORDING TO A SYNDICATE OFFICIAL AT SALOMON BROTHERS THE DEAL WAS INITIALLY GOING TO BE FOR 10 YEARS ONLY BUT IT WASN'T UNTIL THE ROADSHOW REACHED ASIA AND THE US THAT IT WAS REALIZED THAT THERE WAS CONSIDERABLE INTEREST IN LONGER DATED PAPER THE OFFICIAL SAID SOME MONEY MANAGERS FELT THAT THE LIKELY YIELDS ON THE BONDS AREN'T ENOUGH TO COMPENSATE BUYERS FOR THE RISKS OF INVESTING IN ITALY ROBERT BECKWITT A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IS ONE OF THEM YOU CAN BUY A VERY HIGH GRADE US CORPORATE BOND FOR A SIMILAR YIELD HE SAID WHY TAKE THE RISK HE ASKED THERE ARE PLENTY OF PEOPLE SCRAMBLING FOR YIELD ANYWHERE THEY CAN GET IT HE ADDED AS MANAGER OF THE 7 BILLION ASSET MANAGER FUND WHICH CAN INVEST IN ANY COUNTRY THAT ISSUES DEBT AS WELL AS STOCK MR BECKWITT HAS A LOT MORE LATITUDE FOR PICKING AND CHOOSING BONDS FOR HIS PORTFOLIO THAN MOST MONEY MANAGERS HE SAID THAT THE ITALIAN BONDS WOULD BE VERY ATTRACTIVE TO INSTITUTIONAL INVESTORS THAT ARE UNABLE TO BUY NONDOLLARDENOMINATED BONDS STANDARD FOREIGN BONDS OR BONDS WITH SUBINVESTMENT GRADE CREDIT RATINGS ITALY'S LONGTERM DEBT IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THESE ARE RELATIVELY LOW LEVELS FOR A SOVEREIGN BORROWER BUT ONES THAT ALLOW MOST INSTITUTIONAL INVESTORS TO BE BONDHOLDERS ANOTHER ATTRACTION IS THE LONG MATURITIES MANY MONEY MANAGERS NEED TO EXTEND THE AVERAGE LIFE OF THE BONDS IN THEIR PORTFOLIOS BECAUSE SO MANY OF THEM HAVE BEEN CALLED AWAY AS INTEREST RATES DROPPED FOR EUROPEAN INVESTORS THE 30YEAR PORTION IS PARTICULARLY ATTRACTIVE BECAUSE THERE ARE VERY FEW LONGDATED ISSUES IN THE EUROPEAN BOND MARKETS PART OF THE INTEREST IN THE BONDS WAS FUELED BY SPECULATION THAT OVER THE MEDIUMTERM THE US DOLLAR WOULD RISE AGAINST THE YEN AND MOST MAJOR EUROPEAN CURRENCIES TRADERS SAID IT HAD A LOT OF UNIQUE CHARACTERISTICS TO IT SAID ROBERT GRIENER A PORTFOLIO MANAGER AT FIDUCIARY TRUST CO INTERNATIONAL A MONEY MANAGEMENT FIRM ACCORDING TO MARKET SOURCES FIDUCIARY BOUGHT AS MUCH AS 40 MILLION OF THE 30YEAR ITALIAN BONDS IT WAS THE FIRST TIME THAT A SPLITRATED SOVEREIGN ISSUER CAME WITH LONG MATURITIES HE SAID AND THE ISSUE WAS LARGE ENOUGH TO MAKE IT EASIER TO TRADE THAN MANY SOVEREIGN ISSUES HE SAID IT WOULD BE DIFFICULT TO FIND A SIMILAR CREDIT IN THE US OUTSIDE THE TREASURY MARKET THAT COULD BE AS EASILY TRADED HE EXPLAINED AND A 080 PERCENTAGE POINT YIELD SPREAD ON THE 30YEAR PORTION WAS REALLY GOOD RELATIVE VALUE AND COMPARABLE TO A SINGLEARATED US CORPORATE BOND BUT I WOULD RATHER HAVE THE SOVEREIGN GUARANTEE OF A COUNTRY HE ADDED THE ISSUE WAS LEAD MANAGED BY SALOMON BROTHERS INC AND GOLDMAN SACHS & CO US TREASURY NOTES REVERSED EARLY SUBSTANTIAL LOSSES TO FINISH MOSTLY HIGHER WHILE THE 30YEAR TREASURY BOND PRICE ENDED LITTLE CHANGED WITH A YIELD OF 597 AT ONE STAGE YESTERDAY IT HAD DROPPED NEARLY 1 1/2 POINTS OR NEARLY 15 FOR A BOND WITH 1000 FACE VALUE MEANWHILE THE YIELDS OF OTHER ISSUES DROPPED LOWER AS THEIR PRICES ROSE THE 10YEAR NOTE FOR EXAMPLE ROSE MORE THAN 1/8 POINT OR MORE THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 102 28/32 FOR A YIELD OF 536 DOWN FROM 538 TREASURYS BEGAN THE SESSION UNDER PRESSURE ACROSS THE YIELD CURVE AS MANY TRADERS BEGAN TO BELIEVE THAT TREASURYS WERE FINALLY IN THE MIDST OF AN EXTENDED DECLINE THEY SET SHORT POSITIONS MEANING THAT THEY SOLD SECURITIES ON THE BELIEF THAT THEY WOULD BE ABLE TO BUY THOSE ISSUES BACK LATER AT LOWER LEVELS FOR A PROFIT MANY PEOPLE THOUGHT THE MARKET WAS OVERDONE AND WERE LOVING THE IDEA OF SELLING IT SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS BUT AS HAS BEEN THE CASE TIME AND TIME AGAIN IN RECENT MONTHS THE LOWER PRICES AND HIGHER YIELDS ONLY SERVED TO DRAW INVESTORS BACK INTO THE MARKET THAT IN TURN FORCED TRADERS TO BUY BACK SECURITIES CLOSING OUT THEIR SHORT POSITIONS THAT BUYING HELPED THE MARKET PUSH HIGHER THROUGH THE AFTERNOON THE ONLY NEWS OF THE SESSION WAS THE TREASURY DEPARTMENT'S ANNOUNCEMENT THAT IT WILL SELL 16 BILLION IN TWOYEAR NOTES NEXT TUESDAY AND 11 BILLION IN FIVEYEAR NOTES NEXT WEDNESDAY IN LATE TRADING THE WHENISSUED TWOYEAR NOTE YIELDED 388 WHILE THE WHENISSUED FIVEYEAR NOTE YIELDED 476 THE CORPORATE DEBT MARKET REMAINED QUIET YESTERDAY AS PLAYERS WAITED ON THE SIDELINES SEEING EARLY WEAKNESS IN TREASURYS OF THE MEAGER 500 MILLION OF DEBT PRICED 100 MILLION WAS FROM FHP INTERNATIONAL CORP AND 350 MILLION WAS FEDERAL AGENCY PAPER IN THE INVESTMENT GRADE MARKET SECONDARY TRADING WAS MODERATE YIELD SPREADS NARROWED SLIGHTLY AS PRICES FOLLOWED THOSE OF TREASURYS TRADERS SAID THE JUNK BOND MARKET WAS QUIET WITH PRICES SLUMPING AGAIN BY ABOUT A QUARTER TRADERS SAID TIME WARNER BONDS RALLIED AFTER THE COMPANY'S RATING WAS UPGRADED TO INVESTMENT GRADE BY MOODY'S INVESTORS SERVICE INC BASED PARTIALLY ON U S WEST'S EXPECTED 25 BILLION INVESTMENT IN TIME WARNER THE PRICE OF TIME WARNER ENTERTAINMENT'S 8 3/8 BONDS DUE IN 2033 ROSE TO 10375 FROM 101 AS THE YIELD DROPPED TO 79 FROM 815 ONE TRADER SAID THE YIELD SPREAD ON THE COMPANY'S BONDS TIGHTENED BY ABOUT 025 PERCENTAGE POINT BONDS OF RJR NABISCO INC ALSO RALLIED YESTERDAY ON NEWS THAT THE COMPANY PLANS TO CUT COSTS TRADERS SAID ITS RJ REYNOLDS TOBACCO CO UNIT SAID IT PLANS TO ELIMINATE ABOUT 1000 TOBACCOCOMPANY JOBS OR 9 OF ITS WORK FORCE THE BONDS' YIELD SPREAD OVER TREASURYS REPORTEDLY NARROWED BY 025 TO 030 PERCENTAGE POINT THE PRICE ON THE BONDS ROSE TO 97125 FROM 96 AS THEIR YIELD DROPPED TO 91 FROM 93 ONE TRADER SAID MOST MORTGAGE SECURITIES CONTINUED TO GAIN VALUE IN RELATION TO TREASURYS AS BUYERS SCOOPED UP SECURITIES THAT HAD CHEAPENED CONSIDERABLY IN RECENT WEEKS MUCH OF THE BUYING TOOK PLACE AS THE PRICE OF THE TREASURY'S 10YEAR NOTE SANK ABOUT 1/4 EARLIER IN THE DAY IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ROSE 6/32 TO 98 31/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 WERE UP 6/32 AT 98 15/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 ROSE 6/32 TO 98 12/32 IN PRIMARY DEALINGS FANNIE MAE ANNOUNCED A 900 MILLION INCREASE TO AN ORIGINALLY REPORTED 1197 BILLION ISSUE BACKED BY 30YEAR 65 MORTGAGE SECURITIES FREDDIE MAC ANNOUNCED THREE ISSUES TOTALING 18 BILLION BACKED BY 30YEAR 65 MORTGAGE SECURITIES AND A 382 MILLION INCREASE TO A 618 MILLION ISSUE BACKED BY 30YEAR 65 MORTGAGE SECURITIES 9309160043 930916 WHO'S NEWS NATIONAL WESTMINSTER BANCORP INC NATIONAL WESTMINSTER BANCORP INC JERSEY CITY NJ VICKIE REYNOLDS AKELMAN WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS BANK MS AKELMAN 39 YEARS OLD CONTINUES TO HEAD A RECENTLY FORMED GLOBAL FINANCIAL SERVICES GROUP PREVIOUSLY SHE WAS SENIOR VICE PRESIDENT OF CORPORATE PRODUCTS NATWEST BANCORP IS A SUBSIDIARY OF NATIONAL WESTMINSTER BANK PLC LONDON 9309160042 930916 AMERICAN EXCHANGE IS TRADING WARRANTS TIED TO YEN CURRENCY NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT HAS BEGUN TRADING A NEW ISSUE OF CURRENCY WARRANTS TIED TO THE EXCHANGE RATE OF THE JAPANESE YEN THE FIRST NEW YEN WARRANTS IN NEARLY 2 1/2 YEARS THE NEW SECURITIES UNDERWITTEN BY LEHMAN BROS A UNIT OF AMERICAN EXPRESS CO AND OPPENHEIMER & CO ARE THE ONLY YEN WARRANTS CURRENTLY TRADING ON THE EXCHANGE FOUR OLDER ISSUES EXPIRED EARLIER THIS YEAR ACCORDING TO AN EXCHANGE SPOKESWOMAN THE STRIKE PRICE ON THE NEW ISSUE 10627 YEN 1 REFLECTS THE DRAMATIC STRENGTHENING OF THE YEN IN RECENT MONTHS THE EXPIRING ISSUES CARRIED STRIKE PRICES OF 12425 YEN TO 13592 YEN PURCHASERS OF THE WARRANTS WHICH EXPIRE SEPT 15 1995 ANTICIPATE THAT THE DOLLAR WILL STRENGTHEN AGAINST THE YEN THE WARRANTS TYPICALLY RISE IN VALUE AS THE DOLLAR APPRECIATES THREE MILLION WARRANTS WERE ISSUED TRADING UNDER THE SYMBOL YENWS THE ISSUE OPENED AT 6 3/4 WITH A TRADE INVOLVING 27500 WARRANTS AND CLOSED AT 7 1/4 VOLUME WAS 145800 WARRANTS 9309160041 930916 CORRECTION A SENTENCE WAS GARBLED IN YESTERDAY'S EDITORIAL PAGE ARTICLE BY MILTON FRIEDMAN END THE FED'S FINETUNING THE SENTENCE SHOULD HAVE READ THE FED SETS ITSELF A TEMPORARY TARGET FOR THE FEDERALFUNDS RATE AND THEN BUYS SECURITIES WHENEVER THE FUNDS RATE TENDS TO RISE AND SELLS SECURITIES WHENEVER THE FUNDS RATE TENDS TO FALL ALL IN ORDER TO FINETUNE THE RATE ON A DAYTODAY BASIS SEE RELATED ARTICLE END THE FED'S FINETUNING WSJ SEPT 15 1993 9309160040 930916 WHO'S NEWS HALLWOOD GROUP INC HALLWOOD GROUP INC DALLAS ROBERT M DAVIES 43 YEARS OLD RESIGNED AS A DIRECTOR AND EXECUTIVE VICE PRESIDENT OF THIS MERCHANT BANKING AND REAL ESTATE FIRM REDUCING THE SIZE OF THE BOARD TO FIVE THE COMPANY SAID IT HAD NO IMMEDIATE PLANS TO NAME A NEW DIRECTOR OR OFFICER A HALLWOOD SPOKESWOMAN DECLINED COMMENT ON WHY MR DAVIES RESIGNED 9309160039 930916 WHO'S NEWS CORNING INC CORNING INC CORNING NY KENNETH W FREEMAN 43 YEARS OLD WAS NAMED DIVERSITY OFFICER IN CHARGE OF MINORITY HIRING AND OTHER PERSONNEL ISSUES AT THIS SPECIALTY MATERIALS FIBER OPTICS LAB SERVICES AND HOUSEHOLD PRODUCTS CONCERN MR FREEMAN SUCEEDS JAMES E RIESBECK WHO DIED OF A HEART AILMENT ON JUNE 29 AT THE AGE OF 50 MR FREEMAN WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CORNING ASAHI VIDEO PRODUCTS CO AND WILL BE SUCCEEDED BY CLIFTON L SMITH 54 PREVIOUSLY CERAMICS BUSINESS MANAGER JAMES M RAMICH 49 WILL BE NAMED EXECUTIVE VICE PRESIDENT OF THE INFORMATION DISPLAY GROUP MR RAMICH WAS PREVIOUSLY PRESIDENT OF CORNING'S JAPAN UNIT AND WILL BE SUCCEEDED BY SATOSHI FURUYAMA 54 MR FURUYAMA WAS MANAGER OF THE FLAT PANEL DISPLAY BUSINESS RICHARD B KLEIN CORNING'S CONTROLLER WILL BE NAMED DIRECTOR OF INVESTOR RELATIONS EFFECTIVE NOV 1 MR KLEIN 55 SUCCEEDS STEPHEN L ALBERTALLI 64 WHO IS RETIRING MR KLEIN WILL BE SUCCEEDED BY LARRY AIELLO JR 43 WHO WAS GENERAL MANAGER OF THE OPTOELECTRONICS COMPONENTS BUSINESS MR AIELLO WILL BE SUCCEEDED BY WENDELL P WEEKS 34 9309160038 930916 NORTEL SAYS VALUE OF NYNEX CONTRACT MAY BE MISLEADING NEW YORK NORTHERN TELECOM LTD SAID IT MAY HAVE MISLED INVESTORS ABOUT THE SIZE OF A CONTRACT TO SUPPLY DIGITAL SWITCHES TO NYNEX CORP IN A NEWS RELEASE TUESDAY NORTHERN TELECOM HAD SAID IT EXPECTED TO REAP REVENUES OF ABOUT 1 BILLION OVER FIVE YEARS BY SUPPLYING THE DIGITAL SWITCHES TO NYNEX INDIVIDUALS FAMILIAR WITH NYNEX'S PLANS ESTIMATED THE SIZE OF NORTHERN TELECOM'S CONTRACT AT ABOUT 250 MILLION OVER FIVE YEARS A NYNEX SPOKESMAN DECLINED TO COMMENT ON THE VALUE OF THE CONTRACT BUT SAID THE ACTUAL VALUE WAS SUBSTANTIALLY LESS THAN 1 BILLION WE PUT PEOPLE ON THE WRONG TRACK AND NOW HAVE TO PLAY CATCH UP A NORTHERN TELECOM SPOKESMAN SAID THE COMPANY SAID IT HAD COMPLETED MOST NEGOTIATIONS WITH NYNEX AND EXPECTS TO SIGN THE CONTRACT SOON YESTERDAY NORTHERN TELECOM'S SHARES FELL 625 CENTS A SHARE TO CLOSE AT 27 ON VOLUME OF 312000 SHARES ON TUESDAY THE STOCK CLOSED UNCHANGED ON SLIGHTLY MORE THAN ONE MILLION SHARES TRADED THE NORTHERN TELECOM SPOKESMAN REITERATED THAT THE COMPANY EXPECTS TO MAKE REVENUES OF ABOUT 1 BILLION OVER THE FIVE YEARS AS A RESULT OF SUPPLYING SOFTWARE MODERNIZATION EQUIPMENT AND OTHER ADDON SERVICES IN ADDITION TO THE ACTUAL SWITCHES 9309160037 930916 TOP LEAD RESEARCHER DREW CRITICISM IN UNIVERSITY PROBE OF HIS METHODS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL A CLOUD OVER A PIONEERING LEAD SCIENTIST SEEMINGLY LIFTED A YEAR AGO BUT A ONCECONFIDENTIAL REPORT ON A PROBE OF HIS MOST INFLUENTIAL STUDY OBTAINED BY THE WALL STREET JOURNAL COULD REKINDLE THE CONTROVERSY CONCERN ABOUT LEAD ROSE GREATLY AFTER THE 1979 STUDY SUGGESTED THAT LEVELS OF IT TOO LOW TO CAUSE OVERT POISONING COULD LOWER CHILDREN'S IQS THE FINDING HELPED ESTABLISH ITS PRINCIPAL AUTHOR UNIVERSITY OF PITTSBURGH RESEARCHER HERBERT NEEDLEMAN AS A TOP GOVERNMENT ADVISER ON LEAD BUT CRITICS SOON CHARGED THE STUDY WAS BASED ON DUBIOUS METHODS THAT COULD HAVE EXAGGERATED LEAD'S HARM THE DOUBTS THEY RAISED MANY OF WHICH WERE LATER ECHOED BY INVESTIGATING PANELS OF SCIENTISTS CAST A CLOUD ON DR NEEDLEMAN'S CREDIBILITY AS A GOVERNMENT ADVISER HELPING TO SHAPE LEAD POLICY DR NEEDLEMAN HOTLY DENIES THE CHARGES AND MAINTAINS THAT SCIENTISTS WHO FIRST RAISED THEM ARE TOOLS OF THE LEAD INDUSTRY HE ARGUES THAT A NUMBER OF OTHER STUDIES HAVE SUPPORTED HIS 1979 FINDING PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE HE IS WIDELY PRAISED IN SCIENTIFIC CIRCLES FOR HELPING TO FOCUS ATTENTION ON THE LEAD PROBLEM BUT DOUBTS LINGERED UNTIL LAST YEAR WHEN AN INVESTIGATION OF THE LANDMARK STUDY SEEMED FINALLY TO REMOVE THE CLOUD THE INQUIRY WAS OPENED IN 1991 BY DR NEEDLEMAN'S UNIVERSITY AT THE REQUEST OF THE NATIONAL INSTITUTES OF HEALTH WHEN IT WAS COMPLETED DR NEEDLEMAN TOLD REPORTERS THE UNIVERSITY OF PITTSBURGH PANEL HAD CLEARED HIM OF SCIENTIFIC MISCONDUCT AFTERWARD HE WROTE AN ARTICLE IN THE JOURNAL PEDIATRICS THAT LIKENED THE INQUIRY TO THE SALEM WITCH TRIALS BUT THE COMPLETE REPORT IS CONSIDERABLY MORE CRITICAL THAN HE INDICATED IT SAYS THE INVESTIGATING PANEL IS UNANIMOUS IN BELIEVING THAT DR NEEDLEMAN WAS DELIBERATELY MISLEADING IN THE PUBLISHED ACCOUNT OF THE PROCEDURES USED IN THE 1979 STUDY IN A THREEPAGE HISTORY OF DR NEEDLEMAN'S STATEMENTS ON THE STUDY'S METHODS THE PANEL DETAILED HOW HE REPEATEDLY CHANGED HIS ACCOUNT OF THEM MOREOVER SAID THE PANEL THERE WAS A PATTERN OF APPARENT RELUCTANCE OF DR NEEDLEMAN TO DISCLOSE CERTAIN DETAILS ON HOW HE CLASSIFIED CHILDREN AS BEING HIGH OR LOW IN LEAD IN THE 1979 STUDY DR NEEDLEMAN AND COLLEAGUES COLLECTED FALLENOUT BABY TEETH FROM MORE THAN 2000 CHILDREN TO CHECK THEIR CUMULATIVE LEAD EXPOSURES BASED ON IQ TESTS GIVEN TO 158 OF THE CHILDREN WHO WERE DIVIDED INTO HIGH AND LOWLEAD GROUPS THEY REPORTED THAT ELEVATED LEAD LEVELS LOWERED IQ BY ABOUT FOUR POINTS HOW DR NEEDLEMAN SELECTED THE CHILDREN THAT WERE ULTIMATELY TESTED WAS A CRITICAL PART OF THE STUDY AND HIS DESCRIPTION OF THAT SELECTION IS THE FOCUS OF THE PITT PANEL'S MISREPRESENTATION CHARGE BIASED SELECTION METHODS CAN SKEW A STUDY'S RESULTS THE PITT PANEL FOUND NO EVIDENCE DR NEEDLEMAN MANIPULATED SELECTION METHODS TO EXAGGERATE THE RISK FROM LEAD BUT HIS STATEMENTS ON THE STUDY'S METHODS OF CLASSIFYING CHILDREN REVEAL A PATTERN OF ERRORS OMISSIONS CONTRADICTIONS AND INCOMPLETE INFORMATION FROM THE ORIGINAL PUBLICATION TO THE PRESENT IT CONCLUDED THERE WAS A PREPONDERANCE OF CIRCUMSTANTIAL EVIDENCE SUGGESTING DELIBERATE MISREPRESENTATION IT SAID DR NEEDLEMAN COUNTERS THAT WHILE HE MADE A MINOR ERROR IN THE 1979 PAPER IN DESCRIBING HIS METHODS IT WAS AN HONEST ONE HE SAYS THAT LATER HE SIMPLY FORGOT SOME DETAILS OF THE PROCEDURES HE SAYS THE FINDING OF DELIBERATE MISREPRESENTATION IS TOTALLY WRONG AND APPROACHES SLANDER BECAUSE THE PANEL PRESUMED TO READ MY MIND ABOUT WHAT I DELIBERATELY INTENDED DR NEEDLEMAN IS SEEKING RETRACTION OF THE CHARGE IN A SUIT AGAINST PITT FILED IN FEDERAL DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA TO BE SURE THE PITT PANEL SAID DR NEEDLEMAN'S ORIGINAL ERROR WAS MINOR AND DIDN'T AFFECT THE STUDY'S RESULTS BUT THE PANEL ALSO SAID THAT IT IS DIFFICULT TO IMAGINE THAT NEEDLEMAN FORGOT THAT HE APPARENTLY RESET THE CRITERIA FOR CLASSIFYING CHILDREN INTO LEADLEVEL GROUPS NEARLY EVERY WEEK DURING THE INITIAL PHASES OF THE PROCEDURE THE PANEL SAID THE STUDY'S METHODS FOR CLASSIFYING CHILDREN ARE ESSENTIALLY NOT REPRODUCIBLE BY OTHER INVESTIGATORS THE PANEL STATED THAT IT HAD GREAT DIFFICULTY IN DECIDING WHETHER DR NEEDLEMAN'S CONDUCT SHOULD BE CLASSIFIED AS SCIENTIFIC MISCONDUCT IT SAID DISCLOSING THE SUBSTANDARD METHODS BEFORE PUBLICATION WOULD HAVE RISKED REJECTION OF THE PAPER BY THE NEW ENGLAND JOURNAL OF MEDICINE WHICH DECLINES TO COMMENT DR NEEDLEMAN MAY HAVE MISREPRESENTED THE METHODS THE PITT PANEL SUGGESTED SO THE STUDY WOULD APPEAR TO BE A MORE ADEQUATE BASIS FOR PUBLIC POLICY REGARDING ENVIRONMENTAL CONTROLS FOR LEAD THE PANEL CONCLUDED THAT HAD THE PAPER CONTAINED ALL THE CAVEATS IT SHOULD HAVE IT CERTAINLY SHOULD NOT HAVE BEEN A BASIS FOR LEAD POLICY IT RECOMMENDED THAT DR NEEDLEMAN SUBMIT A CORRECTION TO THE NEW ENGLAND JOURNAL HE SAYS HE WON'T UNLESS PITT DROPS THE MISREPRESENTATION CHARGE THE PITT REPORT HAS BEEN REFERRED TO THE NATIONAL INSTITUTES OF HEALTH FOR POSSIBLE FURTHER ACTION