FORD WAS ON THE VERGE OF A TENTATIVE LABOR AGREEMENT WITH THE UAW LATE LAST NIGHT A COMPANY OFFICIAL SAID THE TENTATIVE PACT IS SIMILAR IN MANY RESPECTS INCLUDING HEALTH BENEFITS JOB SECURITY AND SUBCONTRACTING RESTRICTIONS TO THE THREEYEAR CONTRACT THAT EXPIRED TUESDAY STOCKS AND BONDS REBOUNDED FROM SHARP EARLY LOSSES THE DOW JONES INDUSTRIALS WHICH FELL ALMOST 30 POINTS IN EARLY TRADING CLOSED UP 1789 POINTS AT 363365 A BURST OF LATE BUYING PUSHED SHORTERTERM GOVERNMENT BONDS INTO POSITIVE TERRITORY AND LEFT THE 30YEAR ISSUE WITH ONLY A MINIMAL LOSS AMERICAN CYANAMID SAID IT WILL SPIN OFF TO SHAREHOLDERS A MAJORITY STAKE IN ITS CYTEC INDUSTRIES CHEMICAL UNIT PART OF A MOVE TO BECOME A MEDICAL AND AGRICULTURAL PRODUCTS FIRM GM AGREED TO SELL ITS ALLISON GAS TURBINE UNIT FOR AN ESTIMATED 300 MILLION TO A NEW COMPANY FORMED BY THE UNIT'S MANAGERS AND THE INVESTMENT FIRM OF CLAYTON DUBILIER & RICE THE WHITE HOUSE REAFFIRMED ITS COMMITMENT TO HELP BUILD INFORMATION SUPERHIGHWAYS BUT SAID IT NEEDS MORE TIME TO SORT THROUGH QUESTIONS THAT THREATEN TO STALL THE EFFORT ALLEN & CO IS HELPING QVC NETWORK AND ITS CHAIRMAN BARRY DILLER WEIGH A RIVAL OFFER TO VIACOM'S PROPOSAL TO ACQUIRE PARAMOUNT SMALL MANUFACTURERS HAVE TURNED UPBEAT ABOUT THE BUSINESS OUTLOOK FOR THE FIRST TIME SINCE MARCH BUT DON'T SEE PRICES OR EMPLOYMENT RISING ANYTIME SOON A SURVEY FOUND MCA ANNOUNCED PLANS FOR A MULTIBILLION EXPANSION OF ITS UNIVERSAL STUDIOS FLORIDA THEME PARK THE 10YEAR PROJECT WILL INCLUDE A SECOND PARK PARTIALLY BASED ON JURASSIC PARK ITALY OFFERED 55 BILLION IN BONDS AND NOTES HIGHLIGHTING A TREND AMONG EUROPEAN ISSUERS TOWARD LARGER OFFERINGS DENOMINATED IN US DOLLARS THE BANKRUPTCY CODE WOULD BE STREAMLINED UNDER A BILL APPROVED BY A SENATE PANEL STRENGTHENING CREDITOR RIGHTS AND ENABLING MORE INDIVIDUALS TO EMERGE FROM BANKRUPTCY PROCEEDINGS WITHOUT LIQUIDATING THEIR ASSETS T2 MEDICAL NAMED TOMMY H CARTER A COFOUNDER WHO RETIRED IN 1990 AS ITS NEW CHIEF EXECUTIVE THE HOME HEALTHCARE CONCERN RECENTLY DISCLOSED DISCREPANCIES IN ITS FINANCIAL FILINGS HARCOURT GENERAL SAID IT WILL SPIN OFF ITS MOVIETHEATER BUSINESS TO SHAREHOLDERS LAUNCHING A COMPANY THAT IS EXPECTED TO BE A TAKEOVER VEHICLE FOR ITS CHAIRMAN RICHARD A SMITH ITT PICKED DANIEL WEADOCK TO HEAD ITS SHERATON UNIT THE THIRD PRESIDENT OF THE CHAIN IN SEVEN MONTHS BRISTOLMYERS SQUIBB NAMED ITS PRESIDENT CHARLES A HEIMBOLD JR TO THE ADDITIONAL POSITION OF CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 1 RICHARD L GELB WILL REMAIN CHAIRMAN BONDS LEHMAN BROTHERS TREASURY INDEX 562683 UP 675 COMMODITIES OIL 1686 A BARREL OFF 10 CENTS DOW JONES FUTURES INDEX 12563 UP 010 SPOT INDEX 12172 OFF 002 DOLLAR 10590 YEN UP 007 15955 MARKS OFF 00140 9309160035 930916 CHECKPOINT IS SUED IN DISPUTE OVER DEVICE TO DETER SHOPLIFTING NEW YORK CHECKPOINT SYSTEMS INC IS BEING SUED FOR ALLEGEDLY COPYING ANOTHER MANUFACTURER'S SHOPLIFTINGPREVENTION DEVICE THE LAWSUIT FILED IN FEDERAL DISTRICT COURT BY COLORTAG INC ALLEGES THAT CHECKPOINT SYSTEMS THOROFARE NJ COPIED THE DESIGN OF A MINIDYETAG THE DYETAG IS A LIGHTWEIGHT DEVICE THAT IS ATTACHED TO GARMENTS AND SPREADS DYE IF REMOVED WITHOUT A SPECIAL OPENER ACCORDING TO THE SUIT CHECKPOINT SYSTEMS BRIEFLY AGREED IN 1992 TO DISTRIBUTE A MINIDYETAG MADE BY COLORTAG A FORT LAUDERDALE FLA COMPANY THAT UNTIL 1989 WAS THE WORLD'S SOLE MANUFACTURER OF SUCH PRODUCTS COLORTAG ALLEGES THAT CHECKPOINT SYSTEMS SAID IT HAD NO INTENTION OF DEVELOPING A COMPETING DYETAG BUT IT DID SO SHORTLY AFTER THE COMPANIES' AGREEMENT ENDED IN DECEMBER 1992 THE SUIT ALLEGES INFRINGEMENT OF THE COMPANY'S DESIGN UNFAIR COMPETITION AND MISAPPROPRIATION OF TRADE SECRETS COLORTAG IS SEEKING AN INJUNCTION TO STOP CHECKPOINT SYSTEMS FROM MAKING ITS PRODUCT CALLED CHEKINK AS WELL AS COMPENSATORY AND PUNITIVE DAMAGES CHECKPOINT SYSTEMS MAKES A VARIETY OF ANTITHEFT SYSTEMS AND THE MINIDYETAG REPRESENTS ABOUT 2 OF ITS PRODUCT LINE SPOKESWOMAN GLENDA LAUDISIO SAID SHE SAID THE COMPANY HAD NO COMMENT ON THE ALLEGATIONS COLORTAG IS HELD BY FARGKLAMMAN SVENSKA AB OF HUDDINGE SWEDEN 9309160034 930916 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH COMPANY BUYS MAJOR STAKE IN INTERNET HUNGARIAN FIRM AMERICAN TELEPHONE & TELEGRAPH CO BOUGHT A MAJORITY STAKE IN INTERNET KFT A SMALL HUNGARIAN DISTRIBUTOR OF BUSINESS PHONE EQUIPMENT AT&T BOUGHT THE STAKE IN INTERNET HELD BY KFKI THE CENTRAL RESEARCH INSTITUTE FOR PHYSICS INTERNET'S OTHER HOLDER TIBOR SZEKERES STILL HOLDS A MINORITY STAKE AND WILL CONTINUE AS PRESIDENT AT&T HOLDS AT LEAST 75 A SPOKESWOMAN SAID IN NEW YORK BUT SHE DECLINED TO DISCLOSE THE FULL TERMS MR SZEKERES IS A FORMER AT&T BELL LABORATORIES EMPLOYEE WHO LEFT THE COMPANY IN 1982 TO START HIS OWN BUSINESS HE MOVED IN 1990 TO HIS NATIVE HUNGARY WHERE HE FORMED INTERNET WITH KFKI INTERNET SELLS AND INSTALLS AT&T OFFICE COMMUNICATIONS GEAR AND HAD REVENUE OF MORE THAN 15 MILLION LAST YEAR AT&T SAID 9309160033 930916 INTERNATIONAL BRITISH AEROSPACE HAD 1STHALF PROFIT AFTER 2YEAR SLUMP BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITISH AEROSPACE PLC CLIMBED OUT OF A TWOYEAR SLUMP BY SWINGING INTO THE BLACK WITH A FIRSTHALF PRETAX PROFIT OF 20 MILLION 309 MILLION BUT THAT COULDN'T KEEP ITS STOCK FROM FALLING 6 A YEAR EARLIER THE COMPANY HAD A PRETAX LOSS OF 129 MILLION THE CURRENT HALF IS ITS FIRST PROFITABLE PERIOD SINCE THE FIRST HALF OF 1991 BRITISH AEROSPACE REPORTED EARNINGS OF 42 PENCE A SHARE IT HAD A LOSS OF 35 PENCE A SHARE A YEAR EARLIER ON THE STRENGTH OF THE RESULTS THE COMPANY INCREASED ITS INTERIM DIVIDEND TO 33 PENCE A SHARE FROM THREE PENCE A SHARE A YEAR EARLIER THE UK'S LARGEST EXPORTER CREDITED THE TURNAROUND TO ITS RESTRUCTURING EFFORTS RATHER THAN A RECOVERY IN ANY OF ITS FOUR MAIN BUSINESS SECTORS DEFENSE AEROSPACE AUTOMOBILES AND PROPERTY BUT TRADERS HAD ANTICIPATED AN EVEN GREATER TURNAROUND AND SO DUMPED THE COMPANY'S STOCK WHICH HAS BEEN A FAVORITE OF THE MARKET THIS YEAR BRITISH AEROSPACE SHARES SANK TO 394 PENCE FROM 420 PENCE ON THE LONDON STOCK EXCHANGE ANALYSTS SAY THEY WERE SURPRISED BY HIGHERTHANEXPECTED INTEREST PAYMENTS OF 91 MILLION UP FROM 62 MILLION A YEAR EARLIER AND THE COMPANY'S PREDICTION OF HIGHER INTEREST CHARGES FOR THE YEAR ANALYSTS MANY OF WHOM HAD EXPECTED INTEREST PAYMENTS TO FALL BLAMED THE RISE ON THE INCREASED FINANCING BURDEN IN THE AUTOMOBILE AND AEROSPACE UNITS ANALYSTS QUICKLY SLASHED THEIR FULLYEAR EARNINGS FORECASTS AND ARE PREDICTING PRETAX OPERATING PROFIT OF 100 MILLION TO 200 MILLION LOSSES CONTINUED IN THE COMMERCIAL AIRCRAFT DIVISION ALTHOUGH THE DEFICIT SHRANK TO 81 MILLION FROM 286 MILLION STILL THERE WAS CLEARLY A TURNAROUND THE ROVER AUTOMOBILES DIVISION NARROWED ITS PRETAX LOSS TO 19 MILLION FROM 31 MILLION A YEAR EARLIER IN THE DEFENSE BUSINESS BRITISH AEROSPACE LANDED AT LEAST ONE MAJOR ORDER WHEN SAUDI ARABIA AGREED TO BUY 47 TORNADO FIGHTER JETS 9309160032 930916 WHO'S NEWS ALFIN INC ALFIN INC NEW YORK MAYER D MOYAL WAS NAMED CHAIRMAN OF THIS FRAGRANCE AND COSMETIC MANUFACTURER AND DISTRIBUTOR MR MOYAL 63 YEARS OLD WAS FORMERLY PRESIDENT OF DANA COTE D'AZUR AND TED LAPIDUS BOTH PARISBASED FASHION APPAREL COMPANIES HE SUCCEEDS SAUL RESNIK WHO RESIGNED AUG 31 TO PURSUE PERSONAL BUSINESS INTERESTS 9309160031 930916 JURY FINDS CALIFORNIA LIABLE FOR HARM CAUSED BY TOXIC WASTE SITE A CALIFORNIA JURY FOUND THE STATE LIABLE FOR HARM CAUSED TO SOME PLAINTIFFS WHO HAD ARGUED THEY WERE EXPOSED TO HAZARDOUS WASTES DUMPED AT THE STRINGFELLOW ACID PITS NEAR LOS ANGELES AMONG THE COUNTRY'S WORST SUPERFUND SITES THE JURY IN THE SUPERIOR COURT OF RIVERSIDE COUNTY AWARDED 159000 TO NINE OF 17 PLAINTIFFS IN THE TRIAL THE FIRST OF A GROUP OF ABOUT 3800 LOCAL RESIDENTS WHO ALLEGE IN A HUGE CIVIL LAWSUIT THAT THEY WERE HURT BY THE DUMP'S WASTES AND THAT THE STATE IS LIABLE THE JURY RULED IN THE STATE'S FAVOR ON EIGHT PLAINTIFFS LAWYERS FOR BOTH SIDES CLAIMED VICTORY WE WERE INTENT TO ESTABLISH LIABILITY GIVEN THE STATE'S DENIAL OF LIABILITY SAID MELVYN I WEISS SENIOR PARTNER OF THE FIRM MILBERG WEISS BERSHAD HYNES & LERACH WHICH IS REPRESENTING THE 3800 PLAINTIFFS WHAT WE HOPE THIS WILL DO IS TO CONVINCE STATE DECISIONMAKERS THAT WE SHOULD RESOLVE THIS MATTER OUTSIDE COURT HE SAID A SPOKESMAN FOR CALIFORNIA'S ENVIRONMENTAL PROTECTION AGENCY CALLED THE VERDICT A VICTORY BECAUSE OF THE LOW DAMAGES THE 17 PLAINTIFFS HAD ASKED FOR 3 MILLION AND WE THINK THERE'S SOME DEFINING MEANING IN THAT IN DETERMINING THE STATE'S LIABILITY FOR THE REMAINING PLAINTIFFS HE SAID SOME 34 MILLION GALLONS OF TOXIC WASTES WERE DUMPED BETWEEN 1956 AND 1972 IN THE STRINGFELLOW PITS MOST OF THE PARTIES ACCUSED OF DUMPING WASTES INCLUDING ROCKWELL INTERNATIONAL CORP MCDONNELL DOUGLAS CORP AND RIVERSIDE COUNTY HAVE SETTLED THEIR PART OF THE CIVIL LAWSUIT 9309160030 930916 GM WILL SELL TURBINE UNIT TO NEW FIRM CLAYTON DUBILIER OTHERS TO BUY ALLISON IN DEAL VALUED AT 300 MILLION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GENERAL MOTORS CORP IN A PUSH TO DOWNSIZE AND CONCENTRATE ON ITS CORE BUSINESSES SAID IT AGREED TO SELL ITS ALLISON GAS TURBINE DIVISION TO A NEW COMPANY FORMED BY CLOSELY HELD INVESTMENT FIRM CLAYTON DUBILIER & RICE INC AND A GROUP OF ALLISON EXECUTIVES ALLISON WITH 1992 REVENUE OF 700 MILLION IS ONE OF THREE MAJOR NONAUTOMOTIVE UNITS GM HAS PUT UP FOR SALE SINCE EARLY 1992 AS IT STRUGGLES TO REGAIN PROFITABILITY AND FORTIFY ITS BALANCE SHEET GM HAD EARLIER REJECTED A FIRST ROUND OF BIDS FOR ALLISON BECAUSE THE PROPOSALS DIDN'T MEET THE COMPANY'S EXPECTATIONS THE INDIANAPOLISBASED UNIT MAKES TURBINES USED FOR JET ENGINES FOR SMALLER AND MIDSIZE AIRCRAFT AND HELICOPTERS ALTHOUGH TERMS WEREN'T DISCLOSED PEOPLE CLOSE TO THE DEAL PUT THE PURCHASE PRICE AT ABOUT 300 MILLION CLAYTON DUBILIER IS EXPECTED TO INVEST 100 MILLION IN EQUITY FROM ITS 1 BILLIONPLUS LEVERAGED BUYOUT FUND FOR THE ACQUISITION AND OBTAIN THE REMAINDER FROM BANKS AND THE JUNKBOND MARKET THE PRICE LESS THAN HALF ALLISON'S 1992 REVENUE SUGGESTS THAT THE BUSINESS HASN'T BEEN A MONEYMAKER FOR GM WHICH IS WHY GM COULDN'T HAVE SOLD THE UNIT IN THE HOT MARKET FOR PUBLIC STOCK OFFERINGS GM DECLINED TO COMMENT ON WHETHER ALLISON'S OPERATIONS WERE PROFITABLE THE PRICE TAG IS ALSO UNDERSTOOD TO BE SUBSTANTIALLY BELOW GM'S BOOK VALUE FOR THE BUSINESS RAISING THE QUESTION WHETHER GM MAY HAVE TO TAKE A WRITEOFF ON THE SALE GM MAY ALSO HAVE TO JETTISON SOME ALLISON EMPLOYEES BEFORE THE DEAL CLOSES IT ALREADY HAS CUT THE HEAD COUNT OVER THE PAST TWO YEARS BY 1000 TO 4700 GM CLEARLY WISHES TO CONCENTRATE ON MAKING CARS AND TRUCKS SAID F BLAKE WALLACE WHO LEADS THE TEAM OF ALLISON EXECUTIVE INVESTORS AND IS A GM VICE PRESIDENT AND GENERAL MANAGER OF ALLISON DR WALLACE WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW ENTITY TO BE RENAMED ALLISON ENGINE CO GM PREVIOUSLY HAD AGREED TO SELL A COMPANION BUSINESS ALLISON TRANSMISSION TO A GERMAN CONCERN BUT THE SALE HAS BEEN DELAYED OWING TO ANTITRUST CONCERNS THE AUTO MAKER IS ALSO SHOPPING AROUND ITS RAILWAY LOCOMOTIVE OPERATIONS DR WALLACE SAID ALLISON WOULD SOON BEGIN SELLING A NUMBER OF NEW TURBINES THAT WOULD HELP THE COMPANY POST SUBSTANTIAL GROWTH ALLISON WAS PARTLY INSULATED FROM THE SEVERE DOWNTURN AFFECTING MOST LARGE ENGINE MAKERS BECAUSE IT SERVED CERTAIN NICHE MARKETS HE ADDED DR WALLACE ALSO SEES ADDITIONAL DEMAND FOR ITS TURBINES STEMMING FROM REGIONAL AIRLINES WHICH ARE INCREASING THEIR PURCHASES OF FASTER AND LARGER AIRCRAFT THE TRANSACTION IS THE LATEST IN A SERIES OF MANAGEMENT BUYOUTS BACKED BY CLAYTON DUBILIER INVOLVING DIVISIONS OF LARGE US CORPORATIONS THE NEW YORKBASED CONCERN WHICH MANAGES A POOL OF EQUITY CAPITAL IN EXCESS OF 1 BILLION ACQUIRED VAN KAMPEN MERRITT COS A MUTUAL FUND AND INVESTMENT ADVISORY FIRM FROM XEROX CORP THIS YEAR FOR ABOUT 360 MILLION IT ALSO ORGANIZED THE 16 BILLION MANAGEMENT BUYOUT OF LEXMARK INTERNATIONAL INC A FORMER UNIT OF INTERNATIONAL BUSINESS MACHINES CORP IN 1991 GM SHARES CLOSED YESTERDAY AT 4725 UP 150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9309160029 930916 SALES OF FARM TRACTORS ROSE 23 IN AUGUST CHICAGO RETAIL SALES OF FARM TRACTORS ROSE 23 IN AUGUST TO 6156 UNITS FROM 6016 UNITS IN THE YEARAGO MONTH THE EQUIPMENT MANUFACTURERS INSTITUTE REPORTED SALES OF COMBINES LAST MONTH CLIMBED 46 TO 619 FROM 592 LAST MONTH'S INCREASE COMPARED WITH A 12 SALES RISE FOR TRACTORS AND A 96 INCREASE FOR COMBINES IN JULY FROM YEAREARLIER COMPARISONS THE GROUP SAID SALES OF 2WHEEL DRIVE TRACTORS INCREASED 18 IN AUGUST WHILE SALES OF 4WHEEL DRIVE TRACTORS SURGED 23 SO FAR THIS YEAR SALES OF FARM TRACTORS HAVE RISEN NEARLY 11 TO 65334 UNITS FROM 59109 UNITS WHILE SALES OF COMBINES HAVE INCREASED 15 TO 4083 FROM 3547 THE INSTITUTE SAID THE DATA REPRESENT MOST OF THE MANUFACTURERS IN EACH PRODUCT CATEGORY BEING SOLD AT RETAIL IN THE US 9309160028 930916 BUSINESS BRIEF MAZDA MOTOR CORP SUBSIDIARY PLANS TO EXPORT USBUILT CARS TO GERMANY MAZDA MOTOR CORP'S MAZDA NORTH AMERICA INC SUBSIDIARY SAID IT WILL BEGIN EXPORTING USBUILT MAZDA 626 MODELS TO GERMANY AT THE END OF THIS YEAR MAZDA ESTIMATES IT WILL SHIP ABOUT 10000 626 MODELS ANNUALLY TO EUROPE THE CARS ARE PRODUCED IN FLAT ROCK MICH AT AUTOALLIANCE INTERNATIONAL INC A 5050 JOINT VENTURE BETWEEN MAZDA MOTOR JAPAN AND FORD MOTOR CO DEARBORN MICH MAZDA CURRENTLY EXPORTS 12000 OF THE 626 AND MX6 MODELS BUILT AT THE US PLANT TO CANADA AND TAIWAN MAZDA NORTH AMERICA SERVES AS AN INTERMEDIARY AMONG MAZDA'S US MANUFACTURING MARKETING AND RESEARCH AND DEVELOPMENT OPERATIONS 9309160027 930916 INTERNATIONAL BRIEF LASMO PLC OIL COMPANY POSTS A PROFIT BUT OUTLOOK IS UNCERTAIN LASMO PLC MANAGED TO SWING BACK INTO THE BLACK IN THE FIRST HALF OF THIS YEAR BUT BRITISH MARKET PARTICIPANTS REMAIN AS DIVIDED AS EVER ABOUT ITS PROSPECTS THE BRITISH OIL EXPLORATION AND PRODUCTION COMPANY POSTED NET INCOME OF 20 MILLION 309 MILLION IN THE FIRST SIX MONTHS COMPARED WITH A LOSS OF 248 MILLION IN THE SAME 1992 PERIOD ANALYSTS' FORECASTS HAD SPANNED AN UNUSUALLY WIDE RANGE BECAUSE OF THE RESTRUCTURING UNDER WAY AT THE COMPANY AFTER BEING BRIEFED ON THE RESULTS AND THE OUTLOOK WEDNESDAY MORNING MOST ANALYSTS EMERGED GLOOMY THE TONE WAS SET BY LASMO'S CHIEF EXECUTIVE OFFICER JOE DARBY WHO SAID THAT PROFIT IN THE NEAR TERM WILL REMAIN DEPRESSED BECAUSE OF THE LOW OIL PRICE AND THE COST STRUCTURE OF OUR EXISTING ASSET BASE THE COMPANY CUT ITS DIVIDEND TO 13 PENCE TWO CENTS A SHARE FROM 23 PENCE IN THE FIRST SIX MONTHS OF 1992 AND SAID IT PLANS TO PAY TWO PENCE FOR THE FULL YEAR DOWN FROM 33 PENCE IN 1992 9309160026 930916 WHO'S NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO ALAN H BENNETT 50 YEARS OLD PRESIDENT OF THIS COMPANY'S SAFETY SUPPLY AMERICA UNIT WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT SALES AND DISTRIBUTION HE WILL BE RESPONSIBLE FOR FIGGIE'S SALES MARKETING DISTRIBUTION AND CUSTOMER SERVICE ACTIVITIES FIGGIE IS A DIVERSIFIED CONSUMER INDUSTRIAL TECHNICAL AND SERVICE CONCERN 9309160025 930916 CORPORATE FOCUS MIRROR GROUP REBOUNDS AMID RUINS OF MAXWELL EMPIRE SUCCESS SETS STAGE FOR STOCK OFFERING THAT WILL HELP PAY OFF SOME CREDITORS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL THE MAXWELL MEDIA EMPIRE SANK ALMOST TWO YEARS AGO BUT ONE OF ITS CHIEF INVESTMENTS MIRROR GROUP NEWSPAPERS PLC SAILS ON FOLLOWING A TRIPLING OF MIRROR GROUP'S STOCK PRICE IN LITTLE OVER A YEAR AND YESTERDAY'S REPORT THAT FIRSTHALF EARNINGS DOUBLED ADMINISTRATORS REPRESENTING MAXWELL CREDITORS ARE EXPECTED SOON TO ANNOUNCE PLANS TO SELL THEIR 548 STAKE IN THE COMPANY FOR MORE THAN 300 MILLION 4638 MILLION MIRROR GROUP WITH ITS FLAGSHIP DAILY MIRROR PAPER IS ONE OF THE UNEXPECTED SUCCESSES RISING FROM THE RUINS OF THE MAXWELL EMPIRE WHICH AFTER ROBERT MAXWELL'S DEATH AT SEA UNRAVELED AMID LOSSES AND LOOTED PENSIONS FUNDS MAXWELL CREDITORS HAVE ACTUALLY BENEFITED FROM THE MAXWELL STAKE IN MIRROR WHILE MIRROR SHARES TOOK AN AWFUL HIT AFTER MR MAXWELL'S MYSTERIOUS DEATH A STOCK OFFERING NOW EVEN ASSUMING IT'S AT A DISCOUNT TO CURRENT PRICES WOULD BE AT A PRICE AT LEAST 20 HIGHER THAN WHERE THE SHARES WERE BEFORE MAXWELL'S BUSINESSES CRUMBLED IT'S A REAL NEW START SAYS LORNA TILBIAN MEDIA ANALYST WITH SG WARBURG IN LONDON THEY REALLY HAVE SEVERED THEIR TIES WITH THE MAXWELL LEGACY BUT THAT'S WHERE THE GOOD NEWS ENDS THE GAINS FROM MAXWELL'S MIRROR GROUP STAKE WON'T COME CLOSE TO OFFSETTING THE LOSSES CREDITORS WILL SUFFER ON MR MAXWELL'S OTHER PRIVATE AND PUBLIC BUSINESSES ADMINISTRATORS OF MR MAXWELL'S PRIVATE HOLDINGS WHICH INCLUDE THE MIRROR STAKE AND ONCE INCLUDED THE NEW YORK DAILY NEWS SAY THEY'VE SO FAR RECOVERED ONLY 155 MILLION OF THE TOTAL INDEBTEDNESS OF 14 BILLION AND CREDITORS OF MAXWELL COMMUNICATION CORP MR MAXWELL'S DEFUNCT PUBLIC COMPANY CAN EXPECT BETWEEN 780 MILLION AND 135 BILLION OR BETWEEN 22 AND 43 OF THEIR TOTAL CLAIMS THE 32000 CURRENT AND FUTURE MAXWELL PENSIONERS MEANWHILE FACE LEGAL BATTLES TO RECOUP A PENSIONFUND SHORTFALL OF 440 MILLION WHICH ADMINISTRATORS SAY MR MAXWELL LOOTED TO COVER LOSSES OF HIS VARIOUS BUSINESSES MIRROR GROUP LUCKILY REMAINED SOLVENT THROUGH THE MAXWELL MESS AND HAS SINCE ORCHESTRATED AN IMPRESSIVE TURNAROUND ITS SHARE PRICE HAS JUMPED TO AROUND 185 PENCE 286 LATELY MORE THAN TRIPLING FROM THE LEVEL OF 50 PENCE A SHARE BACK IN JULY 1992 WHEN IT RESUMED TRADING THE STOCK PREVIOUSLY HAD BEEN SUSPENDED SINCE DECEMBER 1991 AT 125 PENCE ARTHUR ANDERSEN THE ADMINISTRATOR REPRESENTING MAXWELL CREDITORS IS EXPECTED TO ANNOUNCE SOON PLANS TO SELL ITS MORE THAN 200 MILLION MAXWELL SHARES THOUGH SUITORS HAVE SURFACED IN THE PAST INCLUDING ANTHONY O'REILLY'S INDEPENDENT NEWSPAPERS AND PEARSON PLC OWNER OF THE FINANCIAL TIMES THE SHARES WILL LIKELY BE SOLD TO INSTITUTIONAL INVESTORS AT A DISCOUNTED PRICE OF ABOUT 150 PENCE A SHARE THE TURNAROUND WAS FASHIONED BY MIRROR GROUP'S NEW MANAGEMENT LED BY DAVID MONTGOMERY FROM RUPERT MURDOCH'S NEWS INTERNATIONAL IT CLOSED A PRINTING PLANT AND SLASHED 600 JOBS OR 18 OF THE WORK FORCE THIS HELPED BOOST 1993 FIRSTHALF PRETAX EARNINGS TO 338 MILLION BEFORE A 361 MILLION CREDIT UP FROM 153 MILLION A YEAR EARLIER PERSHARE EARNINGS ROSE TO 64 PENCE FROM 26 PENCE THE COMPANY ALSO WILL BENEFIT FROM A PLANNED MOVE TO CANARY WHARF THE TROUBLED OFFICE COMPLEX IN EAST LONDON THE MIRROR WON'T HAVE TO PAY FOR THE FIRST FEW YEARS OF A LONGTERM LEASE AS A RESULT OF ALL THIS SOME ANALYSTS BELIEVE MIRROR GROUP WILL RESTORE ITS DIVIDEND MIRROR GROUP IS THE LARGEST TABLOID PUBLISHER IN THE UK WITH A 268 SHARE OF THE TOTAL NEWSPAPER MARKET AND SUCH TITLES AS THE DAILY AND SUNDAY MIRRORS THE PEOPLE AND THE SPORTING LIFE IN THE UK AND THE DAILY RECORD AND SUNDAY MAIL IN SCOTLAND AFTER LOSING THE TOP SPOT AMONG TABLOIDS TO MURDOCH'S SUN IN A PRICING WAR MGN'S FLAGSHIP DAILY MIRROR HAS SHOWN SMALL CIRCULATION GAINS IN EACH OF THE LAST TWO MONTHS THOUGH THE SUN IS GROWING FASTER AND THE DAILY MIRROR WHICH SOLD 51 MILLION COPIES BACK IN 1968 IS DOWN TO 29 MILLION ADVERTISING REVENUE THROUGHOUT THE UK IS UP AND THE MIRROR HAS BOOSTED THE SIZE OF THE PAPER OF COURSE ALL IS NOT WELL FOR MIRROR GROUP THE COMPANY WAS BRUISED BY THE MAXWELL TROUBLES IT RECORDED A 430 MILLION CHARGE IN ITS 1991 EARNINGS AND IS SADDLED WITH A 200 MILLION PENSION DEFICIT THE DAILY MIRROR WHICH RAISED ITS PRICE TO 27 PENCE FROM 25 PENCE LAST YEAR CONTINUES TO LOSE MARKET SHARE TO THE SUN WHICH CUT ITS PRICE TO 20 PENCE THIS SUMMER MIRROR GROUP NEEDS TO DIVERSIFY BEYOND THE MATURE TABLOID MARKET THE PAPER'S READERSHIP BASE MOSTLY BLUECOLLAR WORKERS IS DECLINING BUT FOR MIRROR WITH DEBT OF SOME 400 MILLION DIVERSIFYING INTO TELEVISION MAGAZINES OR OTHER NEWSPAPERS NOW IS JUST A PIPE DREAM SAYS ONE ANALYST AND WITH THE SALE OF THE MAXWELL STAKE LOOMING AN EQUITY OFFERING TO RAISE MORE CASH MIGHT BE A BIT AMBITIOUS SAYS DEREK TERRINGTON A MEDIA ANALYST WITH LONDON'S KLEINWORT BENSON SECURITIES THE LOOMING SALE OF THE MAXWELL STAKE SHOULD CAUSE SHARE PRICES TO MARK TIME FOR A WHILE MR TERRINGTON SAYS BUT BASED ON MIRROR GROUP'S FUNDAMENTALS IT IS TRADING AT UNDER 16 TIMES THIS YEAR'S EARNINGS HE RECOMMENDS THE SHARES SO DOES WARBURG'S MS TILBIAN THEY'VE UPGRADED EDITORIAL CONTENT IMPROVED CIRCULATION AND ATTRACTED MORE ADVERTISING AND THEY'VE MAXIMIZED SHAREHOLDER VALUE BY BECOMING AS EFFICIENT AS THE SUN SHE SAYS THIS IS SMALL CONSOLATION FOR MOST CREDITORS OF THE HUNDREDS OF ENTANGLED MAXWELL COMPANIES MANY NO MORE THAN SHELL CORPORATIONS ALL BUT A FEW HAVE BEEN SOLD GENERALLY FALLING SHORT OF MEETING CREDITORS' CLAIMS OF MR MAXWELL'S PRIVATE HOLDINGS A SPOKESMAN FOR ADMINISTRATORS AT ARTHUR ANDERSEN SAY ALL BUT THREE OR FOUR OF THE 55 PRIVATE OPERATING COMPANIES HAVE BEEN SOLD INCLUDING BRITISH INTERNATIONAL HELICOPTERS LTD MIRRORSOFT LTD EUROPEAN LTD AND AGB GROUP AMONG THE COMPANIES AFFILIATED WITH MAXWELL COMMUNICATION ALL THE LARGE PIECES BUT MACMILLAN INC HAVE BEEN SOLD ALAN JAMIESON A PARTNER WITH PRICE WATERHOUSE WHICH IS OVERSEEING THE SALES SAYS THE BULK OF PAYMENTS WILL BE MADE BEFORE THE 1994 FIRST QUARTER ENDS IN THE US PRICE WATERHOUSE HAS UNLOADED OFFICIAL AIRLINE GUIDES COLLIER ENCYCLOPEDIA AND MACMILLAN'S HALFINTEREST IN A VENTURE WITH MCGRAW HILL AMONG OTHERS IN THE UK THE SALES HAVE INCLUDED MAXWELL BUSINESS COMMUNICATIONS GROUP AND MAXWELL CONSUMER PUBLISHING MR JAMIESON SAID HE EXPECTS BIDDING ON THE REST OF MACMILLAN TO TAKE PLACE WITHIN A COUPLE OF MONTHS 9309160024 930916 WHO'S NEWS ARMCO INC ARMCO INC BUTLER PA AS PART OF THIS STEEL CONCERN'S MOVE TO CONSOLIDATE SALES FORCES WITHIN ITS CORE FLATROLLED STEELS GROUP DENNIS R TRUAX 47 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF MARKETING AND SALES FOR THE STAINLESS SHEET AND PLATE DIVISION OF THE GROUP HE IS NOW IN CHARGE OF SALES FORCES FOR ARMCO ADVANCED MATERIALS CO EASTERN STAINLESS AND NORTH AMERICAN STAINLESS MR TRUAX WAS PREVIOUSLY VICE PRESIDENT IN CHARGE OF STAINLESS SALES AT ARMCO ADVANCED MATERIALS ONLY ALSO RICHARD J OBSITNIK 58 WAS NAMED TO THE NEW POSITION OF DIRECTOR OF MARKETING AND SALES FOR ARMCO ADVANCED MATERIAL'S AUTOMOTIVE EXHAUST SYSTEM STAINLESS PRODUCTS LINE HE HAD BEEN GENERAL MANAGER FOR THAT PRODUCT LINE 9309160023 930916 BUSINESS BRIEFS JOHNSON CONTROLS INC WILL NEXT MARCH CLOSE AN AUTOMOTIVEBATTERY MANUFACTURING FACILITY ONE OF 12 IT OPERATES NATIONWIDE BECAUSE OF EXCESS CAPACITY HAWORTH INC ACQUIRED GLOBE BUSINESS FURNITURE BASED IN HENDERSONVILLE TENN TERMS WEREN'T DISCLOSED STERLING BANCSHARES INC SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ENTERPRISE BANKHOUSTON FOR 15 MILLION IN CASH TERMS WEREN'T DISCLOSED ZAPATA CORP ACQUIRED THE NATURAL GAS GATHERING AND PROCESSING INTERESTS OF STELLAR COS OF HOUSTON FOR ABOUT 16 MILLION INTERTAPE POLYMER GROUP INC'S US UNIT SIGNED A LETTER OF INTENT TO BUY THE BUSINESS OF CAJUN BAG & SUPPLY CO CROWLEY LA TERMS WEREN'T DISCLOSED 9309160022 930916 WEDNESDAY'S MARKETS STOCKS GAIN AFTER TAKING EARLY DIVE BOND PRICES RECOVER FROM SHARP LOSSES AND DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL WHAT STARTED AS A ROUT ON WALL STREET ENDED ON A CHEERY NOTE AS STOCKS SHOT HIGHER AT THE CLOSE AND BONDS RECOUPED MUCH OF THEIR EARLY LOSSES THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1789 POINTS TO 363365 STANDARD & POOR'S 500STOCK INDEX ROSE 170 TO 46160 AND THE NASDAQ COMPOSITE INDEX CLIMBED 691 TO 73955 BOND PRICES SANK IN EARLY TRADING PUSHING THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND ABOVE 6 TRADERS SAID THERE WAS NO NEWS DRIVING BOND PRICES LOWER OTHER THAN CONTINUING FALLOUT FROM TUESDAY'S HIGHERTHANEXPECTED INFLATION DATA BUT A BURST OF AFTERNOON BUYING PUSHED SHORTERMATURITY GOVERNMENT ISSUES INTO POSITIVE TERRITORY AND LEFT THE LONG BOND WITH ONLY A MINIMAL LOSS INFLATION RATE PEOPLE ARE SEARCHING FOR A TRADING RANGE IN THE ABSENCE OF NEWS SAID RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH I THINK INTEREST RATES CAN GO SOMEWHAT LOWER BUT NOT IMMEDIATELY STOCKS STAGED A STUNNING TURNAROUND AFTER BEING PUMMELED AT THE OPENING BY THE PLUNGING BOND PRICES THE INDUSTRIAL AVERAGE SANK NEARLY 30 POINTS IN EARLY TRADING AND STRUGGLED INTO POSITIVE TERRITORY IN THE LAST HOUR THE AVERAGE THEN SHOT UP TO CLOSE NEAR ITS HIGH FOR THE DAY THERE WAS SURPRISING RESILIENCE IN THE MARKET TODAY SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO IT WAS THE RESULT OF SUBSTANTIAL CASH ON THE SIDELINES THAT INVESTORS TEND TO PUT TO WORK WHEN THE MARKET SELLS OFF LACK OF STRONG EARNINGS DESPITE THE LATE GAINS ANALYSTS REMAIN CONCERNED ABOUT THE STOCK MARKET'S OUTLOOK GIVEN THAT THEY THINK A LACKLUSTER EARNINGS SEASON MAY LIE AHEAD THE STOCK MARKET IS LIKE A MONSTER THE BIGGER IT GETS THE MORE IT NEEDS TO EAT SAID STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO BUT THERE AREN'T ENOUGH GOOD EARNINGS TO EAT RIGHT NOW WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 004 TO 11262 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2944 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 986 ISSUES FELL AND 964 ROSE BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST AN EIGHTH OF A POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 597 SHORTERTERM BONDS POSTED MODEST GAINS THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15955 MARKS AND 10590 YEN COMPARED WITH 16095 MARKS AND 10583 YEN TUESDAY 9309160021 930916 MARKETING BRIEF PIER 1 IMPORTS INC FIRM'S FIRST MEXICAN STORE TO OPEN IN A SEARS DE MEXICO PIER 1 IMPORTS INC FORT WORTH TEXAS SAID IT WILL OPEN ITS FIRST OUTLET IN MEXICO NEXT MONTH WITHIN A SEARS DE MEXICO STORE AT A MEXICO CITY SHOPPING MALL MARVIN J GIROUARD PRESIDENT AND CHIEF OPERATING OFFICER OF THE IMPORTED HOME FURNISHINGS CHAIN SAID PIER 1 EXPECTS TO OPEN A SECOND OUTLET ALSO IN A MEXICO CITY SEARS STORE BY CHRISTMAS THE OPENINGS ARE AN INITIAL TEST OF A JOINT VENTURE THAT COULD LEAD TO PIER 1 OUTLETS BOTH IN SEARS DE MEXICO'S FOUR DOZEN SEARS STORES AND POSSIBLY IN THE MEXICAN RETAILER'S NEW SEARS HOMELIFE FURNITURE STORES THE FIRST OF WHICH IS SLATED TO OPEN NEXT MONTH IN NORTHERN MEXICO SEARS DE MEXICO WHICH IS PUBLICLY TRADED IN MEXICO IS AN UPSCALE AFFILIATE OF SEARS ROEBUCK & CO 9309160020 930916 WHO'S NEWS KIII COMMUNICATIONS CORP KIII COMMUNICATIONS CORP NEW YORK JANICE GROSSMAN 43 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT FOR GROUP SALES OF KIII MAGAZINES A UNIT OF THIS PUBLISHING DIRECT MARKETING AND INFORMATION SERVICES COMPANY MS GROSSMAN WILL CONTINUE IN HER CURRENT POSITION AS GROUP PUBLISHER OF THE MAGAZINES UNIT 9309160019 930916 MARKETING BRIEF GILLETTE CO JANUARY LAUNCH IS PLANNED FOR MEN'S FRAGRANCE LINE GILLETTE CO SAID IT WILL BEGIN SELLING A NEW MEN'S FRAGRANCE LINE THE GILLETTE SERIES WILD RAIN COLLECTION AT US AND CANADIAN RETAIL OUTLETS IN JANUARY THE BOSTON PERSONALCARE PRODUCTS COMPANY SAID THE NINEPRODUCT LINE FEATURES A UNIFYING FRAGRANCE CALLED WILD RAIN THE LINE INCLUDES TWO SHAVING PREPARATIONS FOUR ANTIPERSPIRANTS AND DEODORANTS TWO AFTERSHAVE SKIN CONDITIONERS AND AN AFTERSHAVE SPLASH A YEAR AGO THE COMPANY LAUNCHED THE GILLETTE SERIES COOL WAVE LINE OF MALE GROOMING PRODUCTS WHICH IT SAID IS EXPECTED TO POST SALES OF 100 MILLION THIS YEAR THE LINE IS SOLD IN THE US CANADA AND THE UNITED KINGDOM A CONTINENTAL EUROPEAN LAUNCH IS BEING PLANNED GILLETTE SAID IT PLANS TO SPEND MORE THAN 8 MILLION IN ADVERTISING THE WILD RAIN PRODUCTS IN NORTH AMERICA NEXT YEAR 9309160018 930916 WHO'S NEWS AMERICAN WASTE SERVICES INC AMERICAN WASTE SERVICES INC WARREN OHIO SCOTT L PORTER 34 YEARS OLD EXECUTIVE VICE PRESIDENT OF DISPOSAL SERVICES WAS NAMED A DIRECTOR OF THIS INTEGRATED WASTEMANAGEMENT AND ENVIRONMENTALSERVICES CONCERN HE SUCCEEDS WILLIAM M THOMAS JR 47 WHO ALSO HAD BEEN EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING MR THOMAS RESIGNED THOSE POSTS TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID IN A STATEMENT 9309160017 930916 BUSINESS BRIEF ALLIED GROUP LTD POLICE IN HONG KONG RAID OFFICES OF COMPANY OTHERS HUNDREDS OF POLICE OFFICERS RAIDED THE OFFICES OF HONG KONGLISTED ALLIED GROUP LTD AND OTHER COMPANIES CONTROLLED BY BUSINESSMAN LEE MING TEE OF MALAYSIA ALLIED GROUP AND SEVERAL ASSOCIATED COMPANIES WERE THE SUBJECT OF A YEARLONG INVESTIGATION FOCUSING ON A SERIES OF SHARE TRANSACTIONS WHICH TOOK PLACE BETWEEN JANUARY 1990 AND MAY 1992 THAT REGULATORS SAY MAY HAVE BREACHED HONG KONG'S TAKEOVER CODE AND DISCLOSURE RULES THE TRANSACTIONS INVOLVED SHARES OF ALLIED GROUP AND SEVERAL SUBSIDIARIES AND ASSOCIATED COMPANIES MANY OF THOSE SUBSIDIARIES HAVE SINCE BEEN SOLD ALLIED GROUP COMPLAINED THAT HONG KONG OFFICIALS HADN'T GIVEN THE COMPANY A COPY OF THE INSPECTOR'S REPORT WHICH PROMPTED THE RAID ACCORDINGLY THE GROUP DOESN'T KNOW WHAT IF ANY ALLEGATIONS CRIMINAL OR OTHERWISE ARE CONTAINED IN THAT DOCUMENT IT SAID POLICE WERE EXPECTED TO REMAIN AT THE OFFICES AROUND THE CLOCK UNTIL THE OPERATION IS COMPLETED WHICH THE COMMERCIAL CRIME BUREAU SAID WILL TAKE SEVERAL DAYS NO ARRESTS HAVE BEEN MADE 9309160016 930916 WHO'S NEWS KYOTARU CO KYOTARU CO TOKYO NICK VALENTI 45 YEARS OLD WAS APPOINTED CHIEF EXECUTIVE OFFICER OF RESTAURANT ASSOCIATES CORP A NEW YORK UNIT THAT MANAGES SEVERAL RESTAURANT CHAINS INCLUDING TROPICA BAR & SEAFOOD HOUSE AND CUCINA & CO MR VALENTI CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER AT RESTAURANT ASSOCIATES SUCCEEDS MAX PINE 59 WHO IS LEAVING THE COMPANY 9309160015 930916 WHO'S NEWS STAPLES INC STAPLES INC FRAMINGHAM MASS ROBERT K MAYERSON 36 YEARS OLD FORMER DIRECTOR OF CORPORATE FINANCE FOR PEPSICO INC WAS NAMED TO THE NEW POST OF VICE PRESIDENT AND TREASURER OF THIS DISCOUNT OFFICESUPPLY COMPANY 9309160014 930916 BUSINESS BRIEF APPLIED SIGNAL TECHNOLOGY INC FISCAL 4THQUARTER PROFIT EXPECTED TO FALL ABOUT 49 APPLIED SIGNAL TECHNOLOGY INC SAID IT EXPECTS TO REPORT THAT FISCALFOURTHQUARTER NET INCOME FELL AS MUCH AS 49 DUE TO ORDER DELAYS THAT WILL PUSH SOME ANTICIPATED REVENUE INTO THE NEXT QUARTER THE DEFENSEELECTRONICS CONCERN IN SUNNYVALE CALIF ESTIMATED THAT NET FOR THE QUARTER ENDING OCT 31 WILL BE 800000 TO 900000 OR NINE CENTS TO 11 CENTS A SHARE COMPARED WITH 16 MILLION OR 28 CENTS A SHARE IN THE YEARAGO QUARTER APPLIED WHICH SAID EARLIER IN THE QUARTER THAT SOME EXPECTED ORDERS HAD BEEN DELAYED SAID THE DELAYS RESULTED IN LESSTHANEXPECTED REVENUE AND NET INCOME FOURTHQUARTER REVENUE IS EXPECTED TO BE 167 MILLION COMPARED WITH 164 MILLION A YEAR AGO THE COMPANY SAID APPLIED ALSO ATTRIBUTED THE NETINCOME DROP TO ITS DECISION NOT TO CUT RESEARCHANDDEVELOPMENT SPENDING DESPITE THE REVENUE DROP THUS CUTTING INTO THE COMPANY'S PROFIT MARGINS 9309160013 930916 BUSINESS BRIEF COASTAL CORP HOUSTON CONCERN PURCHASES 2 COAL UNITS FROM SUN CO COASTAL CORP SAID IT BOUGHT TWO UTAH COAL SUBSIDIARIES FROM SUN CO A RADNOR PA ENERGY CONCERN THE PURCHASE PRICE WASN'T DISCLOSED COASTAL SAID ITS COASTAL STATES ENERGY CO UNIT ACQUIRED THE TWO SUBSIDIARIES THAT HOLD THE RESERVES AND OPERATE THE SOLDIER CANYON UNDERGROUND MINE IN CARBON COUNTY UTAH THE HOUSTONBASED ENERGY CONCERN SAID THE ACQUISITION WILL ADD 100 MILLION TONS OF RECOVERABLE COAL RESERVES TO THE 800 MILLION TON BASE THE COMPANY ALREADY HAS ALMOST ALL OF THE NEW RESERVES SATISFY SULFUR EMISSION REQUIREMENTS OF THE CLEAN AIR ACT COASTAL SAID FOR 1992 COASTAL'S COAL SEGMENT CONTRIBUTED OPERATING PROFIT OF 928 MILLION ON REVENUE OF 4474 MILLION TO THE COMPANY'S TOTAL OPERATING PROFIT OF 3299 MILLION ON REVENUE OF 1006 BILLION 9309160011 930916 FORD AND UAW NEAR TO ACCORD ON 3YEAR PACT EXPECTED AGREEMENT SEEN SIMILAR IN CRUCIAL AREAS TO EXPIRED CONTRACT BY NEAL TEMPLIN AND DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH THE UNITED AUTO WORKERS AND FORD MOTOR CO HAD VIRTUALLY WRAPPED UP A TENTATIVE LABOR AGREEMENT LATE LAST NIGHT AFTER MARATHON TALKS THAT DRAGGED ON NEARLY A FULL DAY AFTER THE PREVIOUS THREEYEAR CONTRACT EXPIRED OFFICIALS CLOSE TO THE TALKS SAID THE PACT IS BELIEVED TO INCLUDE A LONGER PERIOD IN WHICH NEWLY HIRED FORD WORKERS WILL RECEIVE LOWER STARTING WAGES BEFORE THEY REACH PARITY WITH VETERAN EMPLOYEES HOWEVER A COMPANY OFFICIAL SAID THAT IN MANY KEY RESPECTS INCLUDING CRITICAL ISSUES OF HEALTH BENEFITS JOB SECURITY AND SUBCONTRACTING RESTRICTIONS THE TENTATIVE PACT IS SIMILAR TO THE THREEYEAR CONTRACT THAT EXPIRED 1201 AM WEDNESDAY A FORD OFFICIAL SAID UAW AND FORD NEGOTIATORS ULTIMATELY DECIDED TO BACK AWAY FROM AN EFFORT TO FORGE A MORE INNOVATIVE SIXYEAR PACT IN LARGE PART BECAUSE OF UAW FEARS THAT GENERAL MOTORS CORP WOULD REFUSE TO GO ALONG WITH A FORD PATTERN THAT THREATENED TO LOCK IN THE NO 1 AUTO MAKER'S UNCOMPETITIVE LABOR COSTS GM OFFICIALS NOW FACE TOUGH CHOICES OVER WHETHER TO LAUNCH A CAMPAIGN TO BREAK THE UAWFORD PATTERN OR GO ALONG WITH A STATUSQUO AGREEMENT THAT COULD SLOW ITS EFFORTS TO BECOME COMPETITIVE THE UAW'S CONFRONTATION WITH GM COULD BE SEVERAL WEEKS AWAY A NEW FORD CONTRACT MUST BE RATIFIED BY 96000 UAWREPRESENTED FORD WORKERS BEFORE IT BECOMES OFFICIAL AND UAW OFFICIALS EXPECT TO GO NEXT TO CHRYSLER CORP BEFORE TURNING TO GM THE TWO SIDES HAD APPEARED NEAR A DEAL TUESDAY BUT FUTURE EMPLOYMENT LEVELS AT FORD'S PARTSMAKING PLANTS EMERGED AS A LASTMINUTE STUMBLING BLOCK THE UAW WAS PRESSING FORD FOR CERTAIN GUARANTEES CONCERNING STAFFING LEVELS AT PARTSMAKING PLANTS MEANWHILE CHRYSLER'S TENTATIVE NEW LABOR CONTRACT WITH THE CANADIAN AUTO WORKERS WHICH WAS SETTLED YESTERDAY COULD RAISE COMPETITIVE PRESSURE ON FORD CHRYSLER AGREED TO ADD A THIRD SHIFT AT ITS CANADIAN MINIVAN PLANT NEXT FEBRUARY THAT WOULD COME ON THE EVE OF FORD'S PLANNED INTRODUCTION OF A NEW COMPETITOR IN THAT HIGHLY PROFITABLE SEGMENT AS RECENTLY AS TWO DAYS AGO BOTH FORD AND UAW OFFICIALS WERE CONFIDENT THEY WOULD AGREE ON A NEW LABOR CONTRACT BY MIDNIGHT TUESDAY WHEN THE OLD THREEYEAR PACT EXPIRED BUT OUTSOURCING OR SUBCONTRACTING OUT OF WORK APPARENTLY RESURFACED AS AN ISSUE WHEN FORD MADE A BIG PUSH TO SECURE LOWER STARTING WAGES FOR NEW HIRES ACCORDING TO PEOPLE CLOSE TO THE UNION'S BARGAINERS FORD BALKED WHEN THE UNION DEMANDED THAT IN RETURN FORD MAKE GUARANTEES ABOUT STAFFING LEVELS IN ITS PARTSMAKING PLANTS AND EVEN BRING SOME JOBS BACK INHOUSE THAT HAD PREVIOUSLY BEEN FARMED OUT THIS IS NOT AN EASY ISSUE BECAUSE OF THE WAY THE BUSINESS WORKS EXPLAINED ONE TOP UNION OFFICIAL HE SAID IT'S DIFFICULT TO PREVENT FORD FROM SUBCONTRACTING NEW JOBS IN FUTURE VEHICLES TO OUTSIDE SUPPLIERS SEPARATELY CHRYSLER'S CANADIAN UNIT AVERTED A POTENTIALLY DAMAGING STRIKE BY REACHING A SETTLEMENT TUESDAY NIGHT WITH THE CAW WHICH REPRESENTS 10500 CHRYSLER CANADA WORKERS THE UNION SAID THE TENTATIVE THREEYEAR AGREEMENT CALLS FOR WAGE INCREASES OF 2 IN THE FIRST YEAR 15 IN THE SECOND YEAR AND 1 IN THE THIRD YEAR PLUS COSTOFLIVING ADJUSTMENTS AND PENSION GAINS A RATIFICATION VOTE WAS SET FOR SUNDAY THE ADDITION OF THE THIRD SHIFT WILL BOOST CHRYSLER'S MINIVAN CAPACITY TO ABOUT 580000 UNITS A YEAR FROM THE CURRENT 500000 THIS MOVE WHICH RESPONDS TO UNION DEMANDS CONCERNING OVERTIME AND JOB SECURITY IS LIKELY TO HAVE THE EFFECT OF INTENSIFYING THE MINIVAN WARS THAT IS BECAUSE FORD IS PLANNING TO BOOST ITS MINIVAN PRODUCTION 50 TO ABOUT 300000 UNITS A YEAR WHEN IT LAUNCHES ITS NEW WINDSTAR VAN NEXT MARCH FORD WAS UNFAZED THOUGH ALTHOUGH THE MINIVAN SEGMENT IS PROFITABLE AND GROWING IT IS ONLY SO BIG NO MATTER HOW FAST IT'S GROWING SAID CHET KUZIEMKO FORD DIVISION TRUCK MARKETING PLANS MANAGER HE SUGGESTED THAT CHRYSLER MAY BE OVERCONFIDENT AND DECLARED THAT THE FORD PRODUCT WILL REDEFINE WHAT A MINIVAN SHOULD BE AND EAT INTO CHRYSLER SALES CHRYSLER EXECUTIVES DISMISS FORD'S WINDSTAR AS LACKLUSTER AND SAY ITS INTRODUCTION COULD HELP CHRYSLER EVERY TIME SOMEONE HAS COME INTO THE MARKET THE MARKET HAS TAKEN A LEAP FORWARD AND EXPANDED SAID DICK WINTER GENERAL PRODUCT MANAGER FOR MINIVAN OPERATIONS AT CHRYSLER MARK HEINZL IN TORONTO CONTRIBUTED TO THIS ARTICLE 9309160010 930916 INTERNATIONAL BRIEF AHOLD NV STOCK SPLIT IS PLANNED TIED TO LISTING ON THE BIG BOARD DUTCH FOOD RETAILER AHOLD NV PLANS A 2FOR1 SPLIT OF ITS DUTCH AND SWISS LISTED STOCK AS WELL AS ITS AMERICAN DEPOSITARY RECEIPTS TRADED OVER THE COUNTER THE COMPANY SAID THE MOVE IS IN PREPARATION FOR A PLANNED LISTING OF THE ADRS ON THE NEW YORK STOCK EXCHANGE IN MIDNOVEMBER THE SPLIT IS MEANT TO BRING THE PRICE OF THE ADRS IN LINE WITH THAT OF COMPARABLE SHARES OF RETAILERS THAT ARE LISTED ON THE BIG BOARD AN AHOLD SPOKESMAN SAID AHOLD IS CALLING A SPECIAL SHAREHOLDERS MEETING OCT 7 TO AMEND THE COMPANY'S ARTICLES OF ASSOCIATION FOR THE SPLIT A NYSE LISTING WOULD ALSO BE IN KEEPING WITH AHOLD'S PROMINENT POSITION IN THE EASTERN US SUPERMARKET SECTOR WHERE ITS FIVE BIG SUPERMARKET CHAINS WITH TOTAL ANNUAL SALES OF MORE THAN 63 BILLION ACCOUNT FOR ABOUT HALF ITS GLOBAL SALES AHOLD'S ADRS HAVE BEEN TRADED ON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATION SYSTEM SINCE APRIL 1991 IN TRADING YESTERDAY THE ADRS FELL 50 CENTS TO 4875 9309160009 930916 INTERNATIONAL BRIEF MONTEDISON SPA HOLDER OF ADRS FILES SUIT ALLEGING LOSS WAS OBSCURED A HOLDER OF MONTEDISON SPA AMERICAN DEPOSITARY RECEIPTS FILED A LAWSUIT ALLEGING THE ITALIAN COMPANY DISSEMINATED FALSE INFORMATION ABOUT ITS FINANCES THE LAWSUIT FILED IN FEDERAL DISTRICT COURT IN NEW YORK BY ABBEY & ELLIS A NEW YORK SHAREHOLDERSUIT FIRM SEEKS CLASSACTION STATUS FOR PEOPLE WHO BOUGHT MONTEDISON SECURITIES BETWEEN SEPT 10 1990 AND JULY 15 THE SUIT ALLEGES THAT THE TROUBLED ITALIAN AGRICULTURALCHEMICALS COMPANY COVERED UP LOSSES OF MORE THAN 560 BILLION LIRE 3637 MILLION INCLUDING SOME THAT AROSE FROM BRIBING POLITICIANS A SIMILAR SUIT WAS FILED LAST MONTH IN MILAN BY MONTEDISON SHAREHOLDERS THE ITALIAN SUIT NAMED AS DEFENDANTS SIX FORMER EXECUTIVES OF MONTEDISON WHICH IS THE MAIN OPERATING UNIT OF FERRUZZI FINANZIARIA SPA THE US SUIT NAMES THOSE INDIVIDUALS AND MONTEDISON ITSELF MONTEDISON HAD NO IMMEDIATE COMMENT A SPOKESWOMAN IN NEW YORK SAID 9309160008 930916 HARCOURT TO SPIN OFF THEATER BUSINESS CREATING TAKEOVER VEHICLE FOR CHAIRMAN BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL HARCOURT GENERAL INC SAID IT WILL SPIN OFF ITS MOVIETHEATER BUSINESS LAUNCHING A COMPANY THAT IS EXPECTED TO BE A TAKEOVER VEHICLE FOR ITS CHAIRMAN RICHARD A SMITH HARCOURT WHOSE 4 BILLION IN ANNUAL REVENUE COMES PRIMARILY FROM PUBLISHING AND SPECIALTY RETAILING SAID IT WILL TRANSFER ITS 1351 EXHIBITION SCREENS OTHER THEATER ASSETS AND 64 MILLION IN CASH TO THE SPINOFF TO BE CALLED GC COS MR SMITH THE HARCOURT CHAIRMAN ALSO WILL BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GC THROUGH INVESTMENTS AND TAKEOVERS MR SMITH BUILT WHAT IS NOW HARCOURT GENERAL FROM THE BOXOFFICE RECEIPTS OF THE THEATERS ITS ORIGINAL BUSINESS AND THE REASON FOR ITS PREVIOUS NAME GENERAL CINEMA ANALYSTS SAID THAT THEY EXPECT GC TO CARRY SOME WALL STREET CACHET BEYOND THE APPEAL OF ITS OPERATIONS BECAUSE OF EXPECTATIONS THAT MR SMITH WILL STAGE A REPEAT PERFORMANCE THIS RECREATES THE OLD GENERAL CINEMA SAID TONY BRENNER OF UBS SECURITIES IN NEW YORK THEY WILL RUN AN INVESTMENT BUSINESS THEY WILL PICK OFF SMALL AND MEDIUMSIZED COMPANIES USING THEATERS AS A CASH SOURCE ROBERT TARR HARCOURT'S CHIEF EXECUTIVE SAID THAT THE SPINOFF WILL CONFER NEW FLEXIBILITY ON BOTH COMPANIES AND WILL BENEFIT SHAREHOLDERS BY CREATING A SEPARATE MARKET VALUE FOR THE THEATER BUSINESS HE SAID GC WILL BE THE PRIMARY VEHICLE FOR INVESTMENTS IN BUSINESSES UNRELATED TO HARCOURT'S OPERATIONS HARCOURT WAS TOO COMPLEX SAID MR TARR WHO WILL BE A GC DIRECTOR THE THEATERS WERE BURIED IN THE BOWELS OF A MUCH LARGER ENTITY AND COULDN'T GET THE RECOGNITION THEY DESERVED MR BRENNER WOULDN'T GUESS AT A SHARE PRICE OR MARKET VALUE FOR GC WHICH IS EXPECTED TO BE SPUN OFF IN DECEMBER BY GIVING CURRENT HARCOURT HOLDERS ONE GC SHARE FOR EVERY 10 HARCOURT COMMON OR CLASS B SHARES THEY HOLD BUT HE SAID HE EXPECTED IT TO GET A DICK SMITH MULTIPLE OR A RELATIVELY HIGH VALUATION ONE HARCOURT SHAREHOLDER WHO ASKED NOT TO BE IDENTIFIED RECKONED THAT THE 76 MILLION GC SHARES WOULD FETCH ABOUT 30 APIECE IN THE MARKET PLACING A VALUATION OF ABOUT 228 MILLION ON THE NEW COMPANY WITH BETTER SUMMER ATTRACTIONS THE GC OPERATIONS ARE ON A PACE THIS YEAR TO EXCEED THEIR REVENUE OF 4572 MILLION AND OPERATING EARNINGS OF 119 MILLION IN THE FISCAL YEAR ENDED OCT 31 1992 FOR THE FIRST NINE MONTHS REVENUE WAS 3801 MILLION AND OPERATING EARNINGS OR PROFIT BEFORE TAXES AND A SHARE OF ADMINISTRATIVE OVERHEAD WERE 209 MILLION MR TARR SAID THAT HE AND MR SMITH WILL CONTINUE TO CONSIDER ACQUISITIONS FOR HARCOURT IN AREAS RELATED TO ITS MAIN BUSINESSES TO RESOLVE ANY CONFLICTS OVER INVESTMENTS THAT BOTH COMPANIES MIGHT FIND ATTRACTIVE WHICH MR TARR CALLED UNLIKELY SPECIAL BOARDS COMPOSED OF OUTSIDE DIRECTORS OF EACH COMPANY ARE TO BE CREATED TO CONSIDER AND NEGOTIATE THE CONFLICT MR SMITH AND HIS FAMILY WILL HAVE ABOUT 28 OF GC'S EQUITY AND THE SAME SHARE OF CORPORATE VOTES UNLIKE THE ARRANGEMENT FOR HARCOURT WHICH GIVES MORE THAN 70 OF THE VOTES TO THE SMITHS 9309160007 930913 THE CLINTON HEALTH PLAN HIGHLIGHTS OF THE PROPOSAL UNIVERSAL COVERAGE ALL US CITIZENS AND LEGAL RESIDENTS WOULD RECEIVE HEALTHCARE COVERAGE THROUGH REGIONAL STATEESTABLISHED ALLIANCES EVEN IF THEY BECOME SICK UNEMPLOYED SWITCH JOBS OR MOVE MEDICARE INDIVIDUALS 65 YEARS AND OLDER WOULD STILL BE COVERED BY MEDICARE BUT HAVE THE OPTION OF RECEIVING COVERAGE THROUGH THE REGIONAL ALLIANCES HIGHINCOME INDIVIDUALS THOSE WITH ANNUAL INCOMES EXCEEDING 100000 AND COUPLES WITH MORE THAN 125000 WOULD PAY MORE FOR THEIR MEDICARE BENEFITS THOUGH THE WHITE HOUSE HASN'T YET SPELLED OUT BY HOW MUCH A NEW PRESCRIPTIONDRUG PROGRAM WOULD BE ADDED SPENDING CAPS WOULD SHARPLY LIMIT THE GROWTH IN MEDICARE EXPENDITURES MEDICAID THE MONEY THAT STATE MEDICAID PROGRAMS REIMBURSE DOCTORS AND HOSPITALS FOR TREATING THE POOR WOULD GO TO THE REGIONAL HEALTH ALLIANCES TO PAY FOR PRIVATE COVERAGE SPENDING CAPS WOULD SHARPLY LIMIT THE GROWTH IN MEDICAID EXPENDITURES EMPLOYER MANDATE EVERY EMPLOYER WOULD BE REQUIRED TO PAY ON BEHALF OF ITS WORKERS AT LEAST 80 OF THE AVERAGE PREMIUM OF THE BENEFITS PACKAGE OFFERED IN ITS REGION WORKERS WOULD PAY THE REMAINDER UNLESS THE EMPLOYER CHOSE TO PICK UP ALL OR PART OF THEIR SHARE THE FEDERAL GOVERNMENT WOULD OFFER FINANCIAL ASSISTANCE TO LOWINCOME AND UNEMPLOYED PEOPLE AS WELL AS TO SMALL LOWWAGE BUSINESSES CORPORATE ALLIANCES COMPANIES WITH MORE THAN 5000 WORKERS WOULD BE ALLOWED TO FORM THEIR OWN CORPORATE ALLIANCES BUT THEY WOULD BE REQUIRED TO PROVIDE THE SAME FEDERALLY GUARANTEED BENEFITS PACKAGE AND MEET VIRTUALLY ALL OTHER GOVERNMENT GUIDELINES IF THE NUMBER OF EMPLOYEES AT A COMPANY FALLS BELOW 4800 THE EMPLOYER MUST JOIN THE REGIONAL ALLIANCE BENEFITS SERVICES COVERED IN THE FEDERALLY GUARANTEED BENEFITS PACKAGE INCLUDE HOSPITAL SERVICES EMERGENCY SERVICES SERVICES OF PHYSICIANS AND OTHER HEALTH PROFESSIONALS CLINICAL PREVENTIVE SERVICES MENTAL HEALTH AND SUBSTANCE ABUSE SERVICES FAMILY PLANNING SERVICES PREGNANCYRELATED SERVICES HOSPICE CARE HOME HEALTH CARE EXTENDEDCARE SERVICES AMBULANCE SERVICES OUTPATIENT LABORATORY AND DIAGNOSTIC SERVICES OUTPATIENT PRESCRIPTION DRUGS AND BIOLOGICALS OUTPATIENT REHABILITATION SERVICES DURABLE MEDICAL EQUIPMENT PROSTHETIC AND ORTHOTIC DEVICES VISION AND HEARING CARE PREVENTIVE DENTAL SERVICES FOR CHILDREN AND HEALTH EDUCATION CLASSES TIMETABLE THE STATES MUST ESTABLISH ALLIANCES NO LATER THAN JAN 1 1997 SOME STATES THAT HAVE SHOWN A GOODFAITH EFFORT TO GET UP AND RUNNING COULD BE GRANTED A GRACE PERIOD OTHER STATES COULD COME ON LINE AS EARLY AS 1995 WORKERS' COMPENSATION AND AUTO INSURANCE THE HEALTH PLANS WOULD TREAT WORKRELATED INJURIES AND INJURIES FROM AUTOMOBILE ACCIDENTS WORKERS' COMPENSATION AND AUTOMOBILE INSURERS WOULD REIMBURSE THE HEALTH PLANS FOR SERVICES PROVIDED BUDGETING AND OVERSIGHT A NEW SEVENMEMBER PRESIDENTIALLY APPOINTED NATIONAL HEALTH BOARD WOULD SET THE SPENDING BUDGET FOR THE REGIONAL ALLIANCES THE ALLIANCES IN TURN WOULD CONTRACT WITH HEALTH PLANS INCLUDING HEALTH MAINTENANCE ORGANIZATIONS FEEFORSERVICE PLANS OR HYBRIDS MAKING SURE THE AVERAGE PREMIUM PRICE IN THE REGION DOESN'T EXCEED THE SPECIFIED TARGET ANTITRUST CHANGES THE PLAN WOULD CLARIFY ANTITRUST RULES SO THAT PHYSICIANS AND OTHER PROVIDERS COULD NEGOTIATE EFFECTIVELY TO FORM THEIR OWN HEALTH NETWORKS AS PART OF THE NEW SYSTEM THE EXEMPTION FROM ANTITRUST LAWS CURRENTLY ENJOYED BY HEALTH INSURERS WOULD BE REPEALED ELIMINATING THE ABILITY OF HEALTH PLANS TO COLLECTIVELY DETERMINE THE RATES THEY CHARGE LONGTERM CARE A NEW LONGTERM CARE PROGRAM FOR ELDERLY DISABLED AND CHRONICALLY ILL PEOPLE WOULD PROVIDE AMONG OTHER THINGS EXPANDED HOME AND COMMUNITYBASED SERVICES THAT ARE FUNDED PRIMARILY BY THE FEDERAL GOVERNMENT WITH SOME INPUT FROM THE STATES PREMIUMS FOR INDIVIDUALS WOULD VARY DEPENDING ON INCOME THE PROGRAM WOULDN'T BE FULLY PHASED IN UNTIL THE YEAR 2000 UNDERSERVED AREAS HEALTH SERVICES WOULD BE EXPANDED FOR RURAL RESIDENTS THROUGH VARIOUS INCENTIVES INCLUDING GIVING PHYSICIANS WHO LOCATE IN SUCH UNDERSERVED AREAS A PERSONAL TAX CREDIT OF 1000 A MONTH THAT COULD BE CLAIMED DURING THE FIRST FIVE YEARS OF PRACTICE IN ADDITION EFFORTS WOULD BE MADE TO EXPAND ACCESS TO MEDICAL CARE FOR INNERCITY RESIDENTS MEDICAL SCHOOLS THE GOVERNMENT WOULD DIRECT FUNDING SO THAT AFTER A FIVEYEAR PHASEIN PERIOD AT LEAST 50 OF NEW PHYSICIANS WOULD BE TRAINED IN PRIMARY CARE RATHER THAN SPECIALTY FIELDS CONSUMER INFORMATION THE REGIONAL ALLIANCES WOULD PUBLISH INFORMATION ON THE COST OF HEALTH PLANS AND LIST THE DOCTORS AND HOSPITALS PARTICIPATING IN EACH ONE THE ALLIANCES WOULD ISSUE ANNUAL QUALITY PERFORMANCE REPORTS ON EACH PLAN CONSUMER PROTECTION PHYSICIANS NO LONGER COULD REFER PATIENTS TO OUTSIDE FACILITIES IN WHICH THEY HAVE A FINANCIAL INTEREST PENALTIES WOULD BE STIFFENED FOR THOSE WHO COMMIT HEALTHCARE FRAUD STANDARD FORMS ALL HEALTH PLANS WOULD ADOPT A SINGLE STANDARD CLAIMS FORM BY JAN 1 1995 9309160006 930916 NAFTA OPENS MORE THAN A TRADE DOOR BY BILL BRADLEY THE NORTH AMERICAN FREE TRADE AGREEMENT FROM A LONGTERM PERSPECTIVE IS PRESIDENT CLINTON'S MOST CRITICAL FOREIGN POLICY DECISION OF HIS FIRST YEAR AND PROBABLY HIS FIRST TERM ITS ENACTMENT OR DEFEAT WILL HAVE A PROFOUND IMPACT ON OUR ECONOMY ON OUR RELATIONS WITH MEXICO AND ON PROSPECTS FOR POLITICAL AND SOCIAL STABILITY THROUGHOUT THE HEMISPHERE THE DEBATE OVER NAFTA SO FAR HOWEVER HAS REFLECTED MORE ABOUT OUR ANXIETIES THAN ABOUT OUR OPPORTUNITIES UNFORTUNATELY NAFTA HAS BECOME A LIGHTNING ROD FOR THESE ANXIETIES IT WOULD BE A TRAGIC IRONY IF NAFTA WERE TO BE DEFEATED IN THE NAME OF SAVING AMERICAN JOBS OR IMPROVING THE ENVIRONMENT OR STEMMING ILLEGAL IMMIGRATION NAFTA DID NOT CAUSE OUR CURRENT PROBLEMS HOW COULD IT IT IS NOT YET IN PLACE AND DEFEATING NAFTA WILL NOT SOLVE THEM INDEED THE TRUTH IS QUITE THE OPPOSITE ON EVERY POINT NAFTA IS PART OF THE SOLUTION ON THE ECONOMY THE INESCAPABLE TRUTH IS THAT MEXICO CURRENTLY HAS TRADE BARRIERS THAT ARE HIGHER THAN AMERICA'S ALTHOUGH IT HAS MADE SIGNIFICANT STRIDES IN OPENING ITS ECONOMY IN THE PAST FEW YEARS IT RETAINS HIGH TARIFFS ON NEARLY ALL IMPORTS OF MANUFACTURED GOODS AND IT ALL BUT PROHIBITS US SERVICE PROVIDERS FROM OPERATING IN MEXICO AND YET THERE ARE VIRTUALLY NO BARRIERS TO LOCATING ECONOMIC PRODUCTION IN MEXICO ANYONE WHO WANTS TO RELOCATE A FACTORY TO MEXICO IS FREE TO DO SO NOW THAT IS NOW BEFORE NAFTA WHAT NAFTA DOES IS ELIMINATE VIRTUALLY ALL MEXICAN PROTECTION OF ITS INDUSTRIAL AND AGRICULTURAL SECTORS AND OPEN FOR THE FIRST TIME THE MEXICAN MARKET TO US SERVICE PROVIDERS IN SUCH IMPORTANT FIELDS AS BANKING INSURANCE CONSTRUCTION AND TELECOMMUNICATIONS THE US ELIMINATES A 4 TARIFF ON MEXICAN GOODS THAT IS LESS THAN ONEHALF AS LARGE AS THE 10 MEXICAN TARIFF ON US GOODS IN OTHER WORDS NAFTA MAKES IT EASIER TO PRODUCE GOODS AND SERVICES IN THE US AND SELL TO MEXICO AS A RESULT AFTER NAFTA THERE WILL BE LESS INCENTIVE TO MOVE PRODUCTION TO MEXICO NOT MORE THIS IS WHY MOST ECONOMIC ANALYSES PROJECT A SIGNIFICANT INCREASE IN EXPORTS TO MEXICO AND A NET INCREASE IN JOBS IN THE US BUT WE DON'T NEED TO RELY ON THEORY TO PREDICT THE EFFECTS OF NAFTA THE BEST EVIDENCE IS THE RECORD TO DATE SINCE THE PARTIAL OPENING OF MEXICO'S ECONOMY BEGAN IN THE MID1980S AMERICAN EXPORTS TO MEXICO HAVE EXPLODED FROM 126 BILLION IN 1986 TO 406 BILLION IN 1992 MEXICANS TODAY PURCHASE MORE AMERICAN IMPORTS PER PERSON THAN DO THE EUROPEANS OR THE JAPANESE SUPPORTING SEVERAL HUNDRED THOUSAND AMERICAN JOBS EVEN IN THE SHORTTERM NAFTA WILL LOCK THESE GAINS IN AND CREATE HUNDREDS OF THOUSANDS OF NEW JOBS BY FURTHER OPENING THE MEXICAN ECONOMY OF COURSE THE WORLD IS UNDERGOING A MASSIVE ECONOMIC TRANSFORMATION AND SUCH CHANGE IS ALWAYS ACCOMPANIED BY WORKER DISLOCATION BUT THE JOB LOSSES RELATED TO NAFTA ARE TINY RELATIVE TO THE EFFECTS OF DEFENSE DOWNSIZING COMPETITION FROM EUROPE JAPAN CHINA AND SOUTHEAST ASIA AND THE NORMAL CHURNING OF THE ECONOMY ACCORDING TO A RECENT CONGRESSIONAL BUDGET OFFICE STUDY THE NUMBER OF WORKERS WHO MAY LOSE THEIR JOBS BECAUSE OF NAFTA WILL BE NO MORE THAN 1 OF ALL WORKERS WHO LOSE THEIR JOBS EVERY YEAR THAT DOESN'T MEAN WE DON'T NEED A STRONG WORKER ADJUSTMENT PACKAGE WE DO OR NATIONAL HEALTH INSURANCE WE DO OR PENSION SECURITY WE DO BUT THE POINT IS THAT WORKER RETRAINING GUARANTEED HEALTH COVERAGE AND PENSION SECURITY AREN'T THE PRICES WE PAY FOR NAFTA WE NEED THEM WITH OR WITHOUT NAFTA IN ORDER TO TREAT CHANGE AS AN OPPORTUNITY AND NOT A THREAT BUT MOST IMPORTANT WE MUST KEEP OUR EYE ON THE LONG TERM THE CHANGING NATURE OF GLOBAL COMPETITION ECONOMIC COMPETITION IN THE YEAR 2020 WON'T CONSIST OF SCATTERED COUNTRIES NIBBLING AT EACH OTHER BUT MAJOR REGIONS OPERATING AS ECONOMIC UNITS ON THE GLOBAL PLAYING FIELD THE BIGGEST THREAT TO AMERICAN JOBS DOES NOT COME FROM MEXICO BUT FROM EUROPE JAPAN AND CHINA WITH NAFTA WE WILL BE BETTER ABLE TO SAVE AMERICAN JOBS FROM THOSE THREATS UNLESS WE IN NORTH AMERICA WORK AS PARTNERS IN THIS GAME WE ARE GOING TO BE AT A SEVERE DISADVANTAGE IN COMPETITION WITH THESE LARGE ECONOMIC CENTERS EUROPE IS RAPIDLY MOVING TOWARD A SINGLE INTEGRATED ECONOMY WHILE JAPAN HAS BEEN BUILDING ECONOMIC BRIDGES THROUGHOUT SOUTHEAST ASIA AS PART OF ITS STRATEGY TO BE COMPETITIVE WITH AMERICA AND EUROPE IN THE 21ST CENTURY THESE STRATEGIES HAVE NOT LOWERED WAGES OR LIVING STANDARDS IN JAPAN OR GERMANY QUITE THE CONTRARY STRONG REGIONAL LINKS HAVE MADE THESE COUNTRIES MORE INTERNATIONALLY COMPETITIVE AND THEIR WORKERS MORE PROSPEROUS BUT IF WE DON'T ALLOW NAFTA TO HELP US BUILD AN ECONOMIC UNIT THAT WOULD PROVIDE ADVANTAGES IN TECHNOLOGY LABOR DIVERSITY MARKET SIZE AND CAPITAL WE WILL LIMP BEHIND IN THE RACE FOR ECONOMIC GROWTH NAFTA WILL ENABLE US TO COMBINE AMERICAN MEXICAN AND CANADIAN ECONOMIC STRENGTHS BUILDING A REGION OF 360 MILLION PEOPLE THAT IS STRONGER TOGETHER THAN IT COULD BE APART FOR GENERATIONS MEXICO'S POLITICAL ECONOMY WAS A DISASTER BUT IN THE MID1980S IT TOOK A 180 DEGREE TURN IT DRAMATICALLY REDUCED ITS BUDGET DEFICIT BY AN AMOUNT THAT WAS THE EQUIVALENT OF THREE GRAMMRUDMANS IN JUST FOUR YEARS IT OPENED ITS ECONOMY TO INTERNATIONAL COMPETITION AND SOUGHT TO RETURN TO THE WORLD CAPITAL MARKETS AFTER THE DESTRUCTION OF THE DEBT CRISIS IT BEGAN TO MAKE POLITICAL CHANGES TOWARD A FUNCTIONING DEMOCRACY AND CRACKED DOWN ON OFFICIAL CORRUPTION MEXICO WANTS TO SEE ITSELF IN THE 21ST CENTURY AS A SOCIETY THAT HAS TAKEN ITS PLACE AMONG MODERN DEMOCRATIC NATIONS IT HAS NOT FULLY ARRIVED BUT NAFTA WILL SPEED MEXICAN PROGRESS TOWARD A FUTURE THAT IS IRREVOCABLY TIED TO THE US WHICH MEANS MORE DEMOCRACY A CLEANER ENVIRONMENT AND HIGHER LIVING STANDARDS FOR ALL THE PEOPLE OF NORTH AMERICA BUT IF NAFTA IS NOT ENACTED IT IS CONCEIVABLE THAT THE MEXICAN ECONOMY WILL FALTER DRAMATICALLY CREATING A RETURN TO THE OLD POLITICS WHERE DEMAGOGUES FIGHT BITTERLY FOR POWER WHILE DEMOCRACY IS SHUNTED ASIDE WHAT ABOUT THE ENVIRONMENT A MEXICO DEDICATED TO ITS OWN CITIZENRY'S HEALTH AND ENGAGED ON MANY FRONTS WITH THE US WILL BE A MEXICO THAT HAS A CLEANER ENVIRONMENT NAFTA WILL ALLOW IT TO DO SOMETHING ABOUT IT BECAUSE RICHER NATIONS CAN AFFORD TO BE CLEANER NATIONS BUT PERHAPS MOST FUNDAMENTALLY NAFTA WILL SHOW THE WORLD THAT WE UNDERSTAND THE POSTCOLD WAR SITUATION TO BE ABOUT BUILDING BRIDGES AND INCLUDING OTHERS IN A COMMON DESTINY THIS INCLUSIVENESS HAS ALWAYS BEEN AN AMERICAN STRENGTH NAFTA DEMONSTRATES IT ANEW IT IS HERE THAT NAFTA OPPONENTS ARE THE MOST CYNICAL OPPOSING THE TREATY WITH THINLY VEILED ATTEMPTS TO PLAY ON RESENTMENTS ROOTED IN ETHNIC CHAUVINISM AND TO PROMOTE FEARS OF CLOSER RELATIONS WITH MEXICANS AN IDEAL OPPORTUNITY ONE OF AMERICA'S GREATEST STRENGTHS IS OUR REMARKABLE ETHNIC RACIAL AND RELIGIOUS DIVERSITY WE MUST MAXIMIZE THAT ADVANTAGE JUST AS SURELY AS WE WOULD UTILIZE A STRENGTH IN PRODUCTION EDUCATION OR GEOGRAPHY NAFTA GIVES US AN IDEAL OPPORTUNITY TO DO SO IN THE GLOBAL COMPETITION OF THE 21ST CENTURY THE ABILITY TO FORGE INTERNATIONAL ALLIANCES AND TO RELATE TO PEOPLE DIFFERENT FROM OURSELVES WILL BE CRITICAL ASSETS MORE IMPORTANT ENACTING NAFTA WILL ENRICH AMERICAN MEXICAN AND CANADIAN SOCIETIES IT WILL ALLOW US TO DEMONSTRATE ONCE AGAIN THAT OUR SOCIETIES ARE OPEN ENOUGH AND UNDERSTANDING ENOUGH TO BE ABLE TO GROW CULTURALLY AS WELL AS ECONOMICALLY AND POLITICALLY DEFEATING NAFTA WON'T CREATE JOBS CONTROL IMMIGRATION OR CLEAN THE ENVIRONMENT EITHER WE ADDRESS THE PROBLEMS OF ECONOMIC TRANSFORMATION HEAD ON OR WE BURY OUR HEADS IN THE SAND BLAME NAFTA FOR SITUATIONS IT DID NOT CREATE AND ACCEPT A LOWER STANDARD OF LIVING AND A FRAYING SOCIAL FABRIC NAFTA OPENS MORE THAN A TRADE DOOR IT WILL ENHANCE OUR NATION IN WAYS THAT ARE ABSOLUTELY CRITICAL TO GROWTH PROGRESS AND SECURITY IN THE 21ST CENTURY MR BRADLEY IS A DEMOCRATIC SENATOR FROM NEW JERSEY 9309160005 930916 USX CORP IS SUED BY THREE SHAREHOLDERS OVER DECLINE OF STOCK PITTSBURGH THREE SHAREHOLDERS HAVE SUED USX CORP IN US DISTRICT COURT HERE ALLEGING THAT THE STEELMAKER MISLED THEM IN A PROSPECTUS BY FAILING TO MENTION HOW USX STEEL GROUP STOCK MIGHT BE HURT BY A TARIFF RULING THE THREE SHAREHOLDERS WHO FILED THEIR LAWSUITS INDIVIDUALLY BOUGHT A TOTAL OF 2000 SHARES OF USX STEEL GROUP STOCK AT 3625 A SHARE ON JULY 22 AS PART OF AN OFFERING OF NINE MILLION SHARES FIVE DAYS LATER IN A RULING THAT SURPRISED MANY INDUSTRY WATCHERS THE US INTERNATIONAL TRADE COMMISSION LIFTED MOST OF THE TARIFFS ON FOREIGN STEEL CAUSING USX STEEL STOCK TO CLOSE AT 31875 BASED ON THE PROSPECTUS WE THOUGHT THE STOCK HAD A MORE POSITIVE OUTLOOK SAID ONE OF THE PLAINTIFFS' ATTORNEYS RICHARD FINBERG OF PITTSBURGH THE LAWSUITS NAME USX CORP SEVERAL SENIOR MANAGERS AT THE COMPANY AND THE OFFERING'S UNDERWRITERS A USX SPOKESMAN DECLINED TO COMMENT THE PLAINTIFFS ARE RICHARD ERENBERG WHO BOUGHT 1000 SHARES MARION FINKEL WHO BOUGHT 500 SHARES AND STEVEN T SNYDER WHO BOUGHT 500 SHARES SEPARATELY PRUDENTIAL SECURITIES ANALYST CLARENCE MORRISON LOWERED HIS 1994 EARNINGS OUTLOOK ON USXUS STEEL GROUP TO 350 A SHARE FROM 450 MR MORRISON CITED COAL PRODUCTION PROBLEMS AT TWO COMPANY MINES WHICH HE EXPECTS TO CONTINUE UNTIL THE END OF THE YEAR MR MORRISON SAID USXUS STEEL WILL ALSO HAVE INTEREST CHARGES ABOUT 5 MILLION HIGHER THAN ANALYSTS' EXPECTATIONS THE ANALYST ESTIMATES USXUS STEEL WILL EARN 1 A SHARE IN 1993 FOR 1992 USXUS STEEL HAD A NET LOSS OF 16 BILLION OR 2885 A SHARE AFTER A RETIREMENT BENEFITS ACCOUNTING CHARGE OF 12 BILLION AND ANOTHER CHARGE OF 176 MILLION FOR CHANGING THE METHOD OF ACCOUNTING FOR INCOME TAXES 9309160004 930916 BUSINESS BRIEF TWO SMALL BANKS LOWER PRIME RATE CITE WEAK ECONOMY NEW YORK TWO SMALL BANKS NUDGED THEIR PRIME LENDING RATE DOWN ONE QUARTER OF A PERCENTAGE POINT YESTERDAY CITING A WEAKNESS IN THE ECONOMY BUT ANALYSTS SAID THE MOVE IS UNLIKELY TO BE MATCHED BY MAJOR BANKS CENTRAL FIDELITY BANK A UNIT OF CENTRAL FIDELITY BANKS INC IN RICHMOND VA AND SOUTHWEST BANK OF ST LOUIS REDUCED THEIR PRIME LENDING RATE TO 575 THE LOWEST LEVEL IN MORE THAN TWO DECADES THE PRIME RATE IS A BENCHMARK FOR RATES ON MOST SMALL BUSINESS LOANS AND INCREASINGLY CONSUMER PRODUCTS SUCH AS HOME EQUITY LOANS AND CREDIT CARDS STILL THE REST OF THE BANKING INDUSTRY DID NOT FOLLOW SUIT IN LOWERING THE PRIME FROM 6 REFLECTING CONTINUED SPOTTY LOAN DEMAND THE RATE HAS BEEN UNCHANGED SINCE JULY 1992 IT IS PERHAPS AN ATTEMPT BY THESE BANKS TO DRUM UP LENDING ACTIVITIES TO BUSINESSES SAID JOHN LONSKI CHIEF ECONOMIST AT MOODY'S INVESTORS SERVICE THIS IS NOT THE FIRST TIME THAT SOME BANKS HAVE JUMPED OUT AHEAD OF THE PACK LAST FALL NEW JERSEY'S FIRST FIDELITY BANCORPORATION REDUCED ITS PRIME RATE HALF A PERCENTAGE TO 55 ONLY TO RATCHET IT BACK UP ONE MONTH LATER BECAUSE OF LITTLE DEMAND FROM BORROWERS REFLECTING CONTINUED CONSERVATISM ON THE PART OF INDIVIDUAL BORROWERS CONSUMER DELINQUENCIES FELL A QUARTER OF A PERCENTAGE POINT IN THE SECOND QUARTER TO 206 OF CONSUMER LOANS THE AMERICAN BANKERS ASSOCIATION REPORTED YESTERDAY THAT'S THE LOWEST LEVEL SINCE 1984 A PERIOD WHEN THE ECONOMY WAS GROWING MORE QUICKLY ALTHOUGH CONSUMER LOANS HAVE STARTED TO PICK UP THE FIGURES REPRESENT ABOVE AVERAGE CAUTION WHEN IT COMES TO BORROWING BY CONSUMERS SAID MR LONSKI 9309160003 930916 US ALUMINUM FIRMS SEEK TO STEM EXPORTS FROM FORMER SOVIETS WASHINGTON US ALUMINUM PRODUCERS CALLED FOR MULTILATERAL TRADE NEGOTIATIONS TO EASE THE FLOOD OF THE METAL ONTO THE WORLD MARKET FROM THE FORMER SOVIET UNION THE ALUMINUM ASSOCIATION INC WHICH REPRESENTS 85 PRIMARY AND SECONDARY PRODUCERS SAID IT ASKED THE US TRADE REPRESENTATIVE TO ESTABLISH RULES OF TRANSITION THROUGH THE TALKS FOR THE EXPORT OF ALUMINUM FROM THE FORMER SOVIET STATES A SPOKESWOMAN FOR THE GROUP SAID IT WAS TOO EARLY TO TELL WHETHER THOSE RULES MIGHT INVOLVE DUTIES THE GROUP SAID EXPORTS FROM THE FORMER SOVIET STATES HAVE CAUSED GRAVE INJURY TO US PRODUCERS INDEED WORLDWIDE OVERSUPPLY FORCED THE NATION'S TWO BIGGEST ALUMINUM MAKERS ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO TO SLASH CAPACITY AND LAY OFF WORKERS THIS SUMMER BUT ANALYSTS SAY MORE PRODUCERS NEED TO CUT PRODUCTION BEFORE ALUMINUM PRICES WILL REBOUND US PRODUCERS ALSO SAID THEY WANT THE EUROPEAN COMMUNITY IN THE NEGOTIATIONS BECAUSE IT RECENTLY IMPOSED A QUOTA ON ALUMINUM FROM THE FORMER SOVIET STATES IF YOU CAN'T SHIP IT TO EUROPE WHERE DO YOU THINK IT'S GOING TO GO IT'LL COME TO THE US SAID CHARLES A BRADFORD AN INDUSTRY ANALYST WITH UBS SECURITIES AFTER THE BREAKUP OF THE SOVIET UNION ALUMINUM PRODUCERS THERE BEGAN SELLING MORE METAL OVERSEAS BECAUSE OF DEFENSE CUTBACKS AND A SOUR DOMESTIC ECONOMY THE ALUMINUM ASSOCIATION SAID IMPORTS FROM THE FORMER SOVIET STATES HIT 12 MILLION METRIC TONS LAST YEAR COMPARED WITH ABOUT 250000 METRIC TONS ANNUALLY BEFORE THE CENTRAL GOVERNMENT THERE COLLAPSED BUT MR BRADFORD SAID IT WILL BE TOUGH TO PERSUADE THE PRODUCERS IN THE FORMER SOVIET UNION TO SLOW EXPORTS BECAUSE THEY BADLY NEED THE HARD CURRENCY THE TRADE BRINGS 9309160002 930916 LETTERS TO THE EDITOR JURASSIC DEMOCRAT ONCE EXTINCT ALIVE PERTAINING TO THE RASH OF PUBLICITY AND COMMENT THAT ACCOMPANIED THE OPENING OF THE MOVIE JURASSIC PARK AND REGARDING THE PIECE ON YOUR EDITORIAL PAGE BY PATRICK COX ON JULY 9 AND THE RESPONSES IN LETTERS TO THE EDITOR ON JULY 29 IT SHOULD BE POINTED OUT THAT THE DNA REPLICATION AND GENETIC REPRODUCTION PROCEDURES IN QUESTION ARE NOT ANY LONGER MATTERS SUBJECT TO SPECULATION HYPOTHESIS AND CONJECTURE THE PROCESS HAS ALREADY BEEN PROVEN VIABLE IF NOT WHOLLY SUCCESSFUL ALTHOUGH THE EXPERIMENT WAS CONDUCTED AND PERFECTED IN THE ARENA OF POLITICAL RATHER THAN LABORATORY SCIENCE JUST OVER A YEAR AGO A CAMPAIGN CONSULTANT LOCATED AND EXTRACTED A CERTAIN QUANTITY OF BLOOD SUCKED BY MOSQUITOES FROM ANCIENT DEMOCRATS BLENDED THE RESULT WITH VARIOUS DNA STRANDS OBTAINED IN SECRET FROM THE BLOOD OF SOME OF THEIR MORE MODERN DESCENDANTS AND THEN CAREFULLY INJECTED THE MIX INTO THE STILLDEVELOPING SHELL OF A SOUTHERN GOVERNOR HE CALLED THE PRODUCT A NEW DEMOCRAT THOUGH IT WAS REALLY NOTHING MORE THAN A RECOMBINANT VARIETY OF AN EXTINCT SPECIES AND THEN TOOK THE APPARENTLY HARMLESS ANIMAL ON TOUR AROUND THE COUNTRY WHERE AT LEAST SOME OF THE POPULATION FELL IN LOVE WITH THE CREATURE SOON HOWEVER PEOPLE BEGAN TO NOTICE DISTURBING BEHAVIOR FRIGHTENINGLY SIMILAR TO THAT OF THE CREATURE'S ANCESTORS BUT BY THE TIME EVERYONE REALIZED WHAT HAD OCCURRED THE THING HAD BROKEN DOWN ITS CAGE AND STARTED RAVAGING THE COUNTRYSIDE JUST AS ITS GENETIC PREDECESSORS HAD DONE YEARS BEFORE FAR TOO LATE IT WAS REALIZED JUST AS THE SCIENTISTS IN THE MOVIE AND BOOK DISCOVERED THAT YOU SIMPLY CAN'T CONTROL NATURE IT WILL FIND A WAY 9309160001 930916 RETAILING FEISTY YANKEES RESIST WALMART'S DRIVE TO SET UP SHOP IN NEW ENGLAND TOWNS BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN WALMART STORES INC UNVEILED PLANS TO BUILD A STORE IN WESTFORD MASS RESIDENT BARBARA CAREY STUCK A STOP WALMART BUMPER STICKER ON HER CAR AND A MATCHING SIGN ON HER FRONT LAWN SHE ALSO CONVERTED HER KITCHEN INTO A WOOD SHOP TO MAKE LAWN SIGNS FOR ABOUT 70 OTHER TOWN RESIDENTS AND SHE ORGANIZED PHONE DRIVES PERSONALLY CALLED 500 WESTFORDIANS AND HELPED DISTRIBUTE BUTTONS THAT READ IF THEY BUILD IT WE WON'T COME MS CAREY A PRESCHOOL TEACHER IS ONE OF MANY SMALLTOWN NEW ENGLANDERS WHO ARE REBELLING AGAINST WALMART'S PLANS TO EXPAND INTO THE REGION ONE OF ITS LAST US FRONTIERS WHILE THE DISCOUNT RETAILER HAS SEEN PLENTY OF RESISTANCE BEFORE RESEARCHERS SAY ITS OPPONENTS IN NEW ENGLAND ARE SAVVIER MORE PLENTIFUL AND POSSIBLY MORE EFFECTIVE THAN THOSE ELSEWHERE INDEED IN WHAT MAY BECOME A WORRISOME PATTERN FOR THE BENTONVILLE ARK CONCERN IT SEEMS THAT SOME STUBBORN YANKEES ARE SLOWING AT LEAST TEMPORARILY WALMART'S PLANS NEW ENGLANDERS ARE BEING MUCH MORE ASSERTIVE ABOUT BUILDING CODES AND GOING WITH THE TOWN PLANS THERE'S A MORE CONCENTRATED STRONGER RESISTANCE THERE THAN I'VE SEEN ELSEWHERE SAYS KENNETH STONE AN ECONOMICS PROFESSOR AT IOWA STATE UNIVERSITY WHO CONDUCTS RESEARCH ON WALMART'S IMPACT ON LOCAL BUSINESSES WALMART DENIES THAT ITS EXPANSION INTO THE SIX NEW ENGLAND STATES HAS BEEN SLOWED BUT IT ANNOUNCED LAST WEEK THAT IT IS RECONSIDERING ITS PLANS TO BUILD STORES IN FOUR MASSACHUSETTS TOWNS INCLUDING WESTFORD IN VERMONT THE SOLE STATE IN THE LOWER 48 WHERE THERE IS NO WALMART ITS PLANS FOR ONE SITE ARE BEING HELD UP BY LEGAL ACTION WHILE ANOTHER SITE IS BEING REVIEWED BY THE STATE GOVERNMENT SMALL MERCHANTS IN BATH MAINE MEANWHILE SAY THEY ARE HOLDING THEIR OWN AGAINST A NEW WALMART IN THE AREA WITH JOINT EFFORTS TO MAKE DOWNTOWN MORE ATTRACTIVE THE RETAILER HAS 28 STORES IN THE NEW ENGLAND REGION MICHAEL EXSTEIN AN ANALYST AT KIDDER PEABODY & CO SAYS IT HAS TAKEN WALMART AN AVERAGE OF 30 MONTHS TO OPEN A SITE IN NEW ENGLAND INCLUDING LAND ACQUISITION LOCAL APPROVAL AND CONSTRUCTION COMPARED WITH SIX TO NINE MONTHS IN OTHER REGIONS A SPOKESMAN FOR WALMART DISPUTES THAT NUMBER BUT MR EXSTEIN MAINTAINS IT WAS RELEASED BY THE COMPANY AT AN ANALYSTS MEETING PROF STONE BELIEVES NEW ENGLANDERS ARE FIGHTING HARDER BECAUSE MANY OF THEIR TOWNS STILL DON'T HAVE MAJOR DISCOUNT STORES AND BECAUSE WHAT HE CALLS THE RICH TRADITION OF THE DOWNTOWN BUSINESS DISTRICT IS STILL STRONG WHILE OTHER REGIONS HAVE FOUGHT WALMART OVER ADDED TRAFFIC AND NOISE PROF STONE SAYS THEIR ARGUMENTS HAVEN'T WORKED BECAUSE TOWN COUNCILS ARE TYPICALLY WILLING TO PUT UP TRAFFIC LIGHTS TO ACCOMMODATE THE 2600 CUSTOMERS AN AVERAGE WALMART DRAWS DAILY IN EXCHANGE FOR WALMART'S SALES AND PROPERTYTAX CONTRIBUTIONS MANY NEW ENGLANDERS ARE CONCERNED ABOUT TRAFFIC AS WELL BUT THEY ARE CHOOSING TO CENTER THEIR OFFICIAL COMPLAINTS ON MORE LEGALLY COMPELLING ARGUMENTS ZONING REQUIREMENTS AND ENVIRONMENTAL IMPACT IN WESTFORD FOR EXAMPLE 5000 PEOPLE ABOUT 30 OF THE TOWN'S RESIDENTS SIGNED A PETITION PROTESTING THE PROPOSED SITE ONE THOUSAND RESIDENTS HECKLED WALMART OFFICIALS AT A TOWN MEETING IN JUNE THEIR CONCERNS THE LOCAL WELL SYSTEM COULD BE CONTAMINATED BY ANY SPILLAGE FROM A WALMART GARDEN CENTER MOREOVER LOCAL VERNAL POOLS THE PUDDLES THAT FROGS AND OTHER AMPHIBIANS USE FOR BREEDING A FEW MONTHS A YEAR MIGHT BE DESTROYED BY WALMART CONSTRUCTION EAGER FOR TOWN APPROVAL WALMART LAST MONTH OFFERED TO HIRE A BIOLOGIST TO TRAP AMPHIBIANS AND LIFT THEM OVER CONSTRUCTION SITE FENCES OF COURSE THIS ISN'T ENOUGH SAYS MS CAREY OF THE STOP WALMART COMMITTEE ONCE THE BUILDING IS UP SHE ADDS THERE'S NO GUARANTEE THE CREATURES WILL REACH THE POOLS BECAUSE THERE WON'T BE A BIOLOGIST COMING EVERY SPRING SAUGUS MASS RESIDENTS OPPOSED TO A PROPOSED WALMART SITE HELPED PRODUCE A 50 PLANNING BOARD VOTE IN JUNE THAT KEPT THE COMPANY OUT EVEN THOUGH THE BOSTON SUBURB IS ALREADY PACKED WITH OVERSIZED ROADSIDE EATERY SIGNS BILLBOARDS AND DISCOUNT STORES SAUGUS RESIDENTS COMPLAINED OF WALMART'S PLAN TO BLAST AWAY MORE THAN ONE MILLION CUBIC FEET OF GRANITE ROCK NEAR A POND AND WOODSY RECREATION AREA PEOPLE JUST WENT CRAZY OVER THIS SAYS ELLEN BURNS A MEMBER OF THE SAUGUS PLANNING BOARD AND THEY WANTED TO PUT A NURSERY SHOP BACK IN WHAT USED TO BE THE WOODS EVERY SINGLE MEMBER OF THE TOWN COUNCIL VOTED AGAINST IT IT WAS REALLY A TREMENDOUS VICTORY WALMART INSISTS THAT ITS STORES ARE BEING WELCOMED BY MOST NEW ENGLANDERS SOME 95 OF THESE COMMUNITIES ARE SAYING LET'S FORGE A PARTNERSHIP THAT'S GOING TO BE GOOD FOR BOTH OF US' SAYS DON SHINKLE A WALMART SPOKESMAN MR SHINKLE SAYS THAT HE CAN'T DISCLOSE THE SPECIFIC REASONS FOR THE SITE REEVALUATIONS BUT HE CONCEDES THAT THERE IS QUITE FRANKLY SOME STRONG OPPOSITION FROM WESTFORD ADDING THAT HE BELIEVES A SILENT MAJORITY FAVORS THE PROPOSED STORE TO BE SURE NOT EVERY TOWN IN NEW ENGLAND IS OPPOSED TO WALMART NOR IS THE CONCERN THE ONLY RETAILER UNDER ATTACK BY THOSE WHO PERCEIVE A DOWNSIDE TO DEVELOPMENT BUT AS THE LARGEST US RETAILER WITH 56 BILLION IN ANNUAL SALES AND 2276 STORES WALMART HAS BECOME A FOCUS OF CRITICS WHO ARGUE THAT BIG COMMERCIAL DEVELOPMENT ON THE EDGE OF A TOWN OFTEN SUCKS THE VITALITY OUT OF ITS CENTER IN VERMONT TOUGH STATE LANDUSE AND ENVIRONMENTAL LAWS HAVE SLOWED LOCAL APPROVAL OF SITES IN WILLISTON AND ST ALBANS ONE GROUP THE WILLISTON CITIZENS FOR RESPONSIBLE GROWTH HAS APPEALED TO STATE SUPERIOR COURT IN BURLINGTON AN APPROVAL FOR WALMART BY LOCAL OFFICIALS THE GROUP ARGUES THAT THE ENVIRONMENTAL IMPACT WOULD BE TOO GREAT FOR A TOWN OF ABOUT 5000 RESIDENTS THE CITIZENS HAVE HOSTED AN ICE CREAM SOCIAL A DANCE A PUPPET SHOW AND A GARAGE SALE TO HELP PAY THEIR LEGAL EXPENSES IN ST ALBANS TOWN OFFICIALS ARE POISED TO VOTE IN COMING WEEKS ON PLANS FOR A STORE ABOUT 1000 CITIZENS OR 21 OF THE POPULATION HAVE SIGNED A PETITION IN FAVOR OF THE PROSPECT BUT APPROVAL MAY BE DELAYED BY GOV HOWARD DEAN WHO RECENTLY ANNOUNCED THE COMMENCEMENT OF A STUDY ANALYZING HOW THE PROPOSED STORE WOULD AFFECT RETAILING ACTIVITY IN THE COUNTY IF THE STUDY SHOWS A POTENTIAL LOSS OF BUSINESSES AND JOBS IN DOWNTOWN THE ST WILL OPPOSE THE SITE SAYS JAMES BRESSOR AN AIDE TO GOV DEAN WE ALL RECOGNIZE THAT VERMONT IS INDEED A PLACE PEOPLE COME TO SEE WE HAVE BEAUTIFUL FARMLAND AND FIELDS AND HILLSIDES SAYS MR BRESSOR IT DOESN'T MEAN WE CAN'T HAVE A WALMART BUT IT SHOULD BE OF AN APPROPRIATE SCALE AND DOWNTOWN IF POSSIBLE SOME LOCAL OPPONENTS HAVE LOST BATTLES AGAINST WALMART INCLUDING THE BATH BUSINESS ASSOCIATION IN MAINE THE GROUP CAMPAIGNED AGAINST A LOCAL WALMART BUT ONE OPENED IN NEARBY BRUNSWICK LAST APRIL RATHER THAN CALLING IT QUITS THE 70 ASSOCIATION MEMBERS LAUNCHED A NEW CAMPAIGN THIS TIME FOR CUSTOMERS WHEREAS SHOPPING IN DOWNTOWN'S 100 STORES USED TO BE UNEVENTFUL NOW THE AREA BOASTS WEEKLY OUTDOOR CONCERTS STREET DANCES A THANKSGIVING PARADE AND EXTENDED STORE HOURS THE KEY IS TO GET ALL THE MERCHANTS TO WORK AS IF THEY WERE A SHOPPING CENTER SAYS WILLIAM F KING JR COCHAIRMAN OF THE ASSOCIATION WHICH HAS ALSO ADDED TV ADVERTISING THE EFFORTS MAY HAVE PAID OFF THE ASSOCIATION SAYS ITS MEMBERS' SALES ARE UP AND THE SHOW WILL SOON HIT THE ROAD SAYS MR KING WE'RE ABOUT TO DO A TWOHOUR SEMINAR IN GLEN FALLS NY FOR BUSINESSES THAT ARE ABOUT TO FACE A WALMART 9309160103 930816 UNDER EXAMINATION INVESTIGATORS INTENSIFY CRACKDOWN ON FRAUD IN THE HEALTH INDUSTRY NHL MEDCHEK LAB CASES OVER MEDICARE PAYMENTS GUIDE LATEST INQUIRIES A PRISON TERM FOR ONE CEO BY RHONDA L RUNDLE AND AMY STEVENS STAFF REPORTERS OF THE WALL STREET JOURNAL AMERICA'S WAR AGAINST SOARING HEALTHCARE COSTS WHICH HAS LONG FOCUSED ON DOLLARS GOING IN THE FRONT DOOR HAS OPENED A SECOND LINE OF ATTACK TO STANCH THE FLOW OF MONEY THAT GOES OUT THE BACK DOOR WITH ATTENTION RIVETED ON THE HILLARY RODHAM CLINTON TASK FORCE THAT SEEKS TO SLASH MEDICAL BILLS WHILE EXPANDING COVERAGE GOVERNMENT INVESTIGATORS HAVE QUIETLY BEEN BUILDING A POWERFUL APPARATUS TO STOP THE LOSS OF SOME 80 BILLION A YEAR THAT A CONGRESSIONAL STUDY ESTIMATES IS LOST THROUGH FRAUD AND ABUSE THE MEDICALFRAUD COPS ARE BEGINNING TO MAKE THEIR PRESENCE FELT JUST LAST WEEK MEDCHEK LABORATORIES INC A PITTSBURGH MEDICALTESTING CONCERN AGREED TO A 24 MILLION GOVERNMENT SETTLEMENT FOR MEDICARE FRAUD AND A ONCEDAZZLING OUTPATIENTTREATMENT COMPANY T2 MEDICAL INC ACKNOWLEDGES THAT AN ONGOING FEDERAL INQUIRY INVOLVES POSSIBLE ILLEGAL KICKBACKS TO DOCTORS FOR REFERRING PATIENTS TO FACILITIES IN WHICH THE PHYSICIANS HAVE A FINANCIAL STAKE THE ALPHARETTA GA COMPANY SAYS IT IS CONFIDENT THE MATTER WILL BE RESOLVED IN ITS FAVOR THE MEDCHEK PROSECUTORS WERE INSPIRED BY A CASE THAT HAS BECOME A MODEL FOR INVESTIGATORS ONE THAT HAS SENT A CHILL THROUGH THE HEALTHCARE INDUSTRY NATIONAL HEALTH LABORATORIES INC ONE OF THE COUNTRY'S LARGEST MEDICAL LABORATORY CHAINS AGREED LATE LAST YEAR TO A STAGGERING 1114 MILLION SETTLEMENT IN THE BIGGEST MEDICAREFRAUD CASE EVER NHL'S 56YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER ROBERT E DRAPER WAS SENTENCED IN APRIL TO THREE MONTHS IN FEDERAL PRISON AFTER A GUILTY PLEA THE EXECUTIVE SAID HE MADE MISTAKES BUT DIDN'T MEAN TO BREAK THE LAW WHEN CAUGHT CRIMINALS OFTEN MAKE SUCH STATEMENTS BUT THIS ONE SEEMS TO HAVE BACKING FROM AN UNLIKELY SOURCE THE PROSECUTOR A LOT OF ATTORNEYS YESTERDAY WOULD HAVE SAID THIS PRACTICE WAS LEGAL THENUS ATTORNEY WILLIAM BRANIFF SAID AFTER THE SETTLEMENT WAS ANNOUNCED THE LATEST CASES ARE A CLEAR SIGNAL THAT THE GOVERNMENT IS DEFINING HEALTHCARE FRAUD MORE BROADLY PROSECUTING IT MORE AGGRESSIVELY AND BRUSHING ASIDE TRADITIONAL DEFENSES PHYSICIANS AND EXECUTIVES WHOSE CRIMES WERE ONCE WINKED AT ARE NOW BEING LED AWAY IN HANDCUFFS SOME INSURANCE COMPANIES AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES'S INVESTIGATIVE ARM FOR YEARS HAVE TRIED TO REIN IN ABUSE BUT FOR LAW ENFORCEMENT HEALTHCARE FRAUD HAS BEEN SOMETHING OF A BACKWATER UNTIL NOW THE NHL CASE SHOWS BOTH THE MURKINESS OF THE GOVERNMENT'S MEDICARE RULES AND HOW COMPLEX MEDICALFRAUD CASES CAN BE TO PROSECUTE THE COMPANY WAS CONVICTED OF INDUCING DOCTORS TO ORDER UNNECESSARY BLOOD TESTS BY MISLEADING THEM ABOUT HOW MUCH NHL WAS BILLING MEDICARE THE COMPANY ARGUED THAT THE TESTS WERE VALUABLE AND THAT IT DIDN'T HAVE TO TELL DOCTORS HOW MUCH IT WAS PAID AT THE TIME NHL'S ILLEGAL PRACTICES STARTED IN 1987 NEW YORK INVESTOR RONALD O PERELMAN OWNED THE COMPANY THROUGH REVLON INC AND OTHER PRIVATE HOLDING COMPANIES SINCE NHL'S INITIAL PUBLIC OFFERING IN 1988 MR PERELMAN HAS GRADUALLY REDUCED HIS STAKE TO 22 BUT HE REMAINS NHL'S CHAIRMAN THE INVESTOR WASN'T PERSONALLY NAMED IN THE NHL CASE HE DECLINED THROUGH A SPOKESMAN TO COMMENT FOR THIS STORY NHL PROSECUTORS DON'T DISPUTE THE COMPANY'S CONTENTION THAT ITS BILLING PROCEDURES WERE A COMMON INDUSTRY PRACTICE THE NATION'S SECOND LARGESTLAB CHAIN CORNING INC'S METPATH CLINICALTESTING DIVISION IS ALSO UNDER INVESTIGATION WE ARE TALKING TO THE JUSTICE DEPARTMENT AND IT ISN'T A GOOD TIME TO DISCUSS THE ISSUES SAYS A SPOKESWOMAN FOR THE CORNING NY COMPANY THE INVESTIGATION ALSO AFFECTS UNILAB CORP A TARZANA CALIF SUCCESSOR TO CORNING'S CALIFORNIA OPERATIONS OTHER MAJOR LAB COMPANIES ARE EDGY WE'RE ALL KIND OF GROPING IN THE DARKNESS WONDERING WHAT THE RULES ARE NOW SAYS JERRY HAYDEN CHIEF FINANCIAL OFFICER OF ALLIED CLINICAL LABORATORIES OF NASHVILLE TENN MR HAYDEN SAYS HE ISN'T AWARE OF ANY PROBE OF HIS COMPANY BUT PROSECUTORS ARE STARTING TO HIT THEIR STRIDE SINCE LAST YEAR'S MOVE BY THE JUSTICE DEPARTMENT AND THE FEDERAL BUREAU OF INVESTIGATION TO ELEVATE HEALTHCARE FRAUD TO A TOP PRIORITY LAW ENFORCEMENT'S MOST POWERFUL TOOLS SUCH AS WIRETAPS ASSET SEIZURE AND THE FEARSOME RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTES ARE INCREASINGLY AIMED AT DOCTORS HOSPITALS AND OTHERS ACCUSED OF CHEATING THE NATION'S 800 BILLIONAYEAR HEALTHCARE SYSTEM THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION HAS SET UP HEALTHCARE FRAUD TASK FORCES IN MORE THAN A DOZEN CITIES FBI AGENTS INCLUDING SOME OF THE 50 REPROGRAMMED LAST YEAR TO MEDICAL FRAUD FROM COUNTERINTELLIGENCE HAVE MET WITH INSURANCECOMPANY GUMSHOES AT THE BUREAU'S TRAINING ACADEMY THE FBI'S HEALTHCARE CASES HAVE NEARLY TRIPLED TO 972 FROM 365 A YEAR AGO SAYS JOE FORD WHO OVERSEES THE NEW FRAUD SQUAD IN WASHINGTON IN THE PAST PROSECUTORS HAVE SHUNNED MEDICALFRAUD CASES BECAUSE THEY OFTEN INVOLVED LOTS OF SMALL CLAIMS AND HARDTOWIN DISPUTES WITH DOCTORS OVER THE MEDICAL NECESSITY OF TREATMENTS NOW WITH MORE HEALTH CARE BEING DELIVERED BY LARGE CORPORATIONS AND DOCTOR NETWORKS THE POTENTIAL FOR SYSTEMATIC LARGESCALE FRAUD IS GROWING AND IT IS EASIER TO GET CONVICTIONS PARTLY BECAUSE JURORS THESE DAYS ARE LESS LIKELY TO ASSUME THAT DOCTORS ARE SAINTS AND ARE MORE WILLING TO VIEW THEM AS PROFITMINDED BUSINESSPEOPLE HEALTHCARE DEFENSE LAWYERS ASSAILED THE NEW FEDERAL OFFENSIVE THE GOVERNMENT HAS BEGUN TO REALLY PUSH THE OUTSIDE OF THE ENVELOPE TO GO AFTER CONDUCT THAT ISN'T EXPRESSLY FORBIDDEN ANYWHERE CHARGED DEFENSE ATTORNEY CRAIG HOLDEN AT A LABORATORYINDUSTRY CONFERENCE IN WASHINGTON EARLIER THIS YEAR BREAKING GROUND THE NHL SETTLEMENT HAS PUT MEDICALFRAUD PROSECUTION ON THE MAP ALONGSIDE GROUNDBREAKING CASES IN THE SECURITIES DEFENSE AND THRIFT INDUSTRIES PROSECUTORS NEED COOKBOOKS AND THE NHL CASE IS AN EASYTOFOLLOW RECIPE SAYS JAMES G SHEEHAN CHIEF OF THE CIVIL DIVISION OF THE US ATTORNEY'S OFFICE IN PHILADELPHIA CAROL C LAM AN ASSISTANT US ATTORNEY WHO WAS THE LEAD PROSECUTOR IN THE NHL CASE HAS BEEN TRAVELING THE COUNTRY TO SHARE HER EXPERTISE WITH LAWENFORCEMENT AGENCIES INDEED THE LEAD PROSECUTOR IN THE MEDCHEK CASE FOLLOWED THE RECIPE I HAD GONE TO TWO DEPARTMENT OF JUSTICE CONFERENCES WHERE CAROL LAM WAS THE SPEAKER AND I SPOKE TO HER ABOUT THE CASE SAYS ANDREW QUINN AN ASSISTANT US ATTORNEY IN SCRANTON PA MEDCHEK LIKE NHL WAS CHARGED WITH MANIPULATING DOCTORS INTO ORDERING UNNECESSARY BLOOD TESTS CORNING WHICH RECENTLY ACQUIRED MEDCHEK ALONG WITH DAMON CORP SAID THE 24 MILLION SETTLEMENT WOULD BE PAID BY A PREVIOUS OWNER THE NHL CASE BEGAN WITH A PHONE TIP IN LATE AUGUST 1989 TO AN OFFICE OF THE INSPECTOR GENERAL OF HHS THE US GOVERNMENT AGENCY THAT INVESTIGATES MEDICARE AND SOCIAL SECURITY FRAUD SOMETHING WAS FISHY ABOUT NHL'S BILLING PRACTICES THE CALLER SAID HE THOUGHT THE COMPANY MIGHT BE OFFERING ILLEGAL VOLUME DISCOUNTS ON BLOOD TESTS THE LAB WOULD BENEFIT BY RECEIVING THE DOCTORS' MEDICARE BUSINESS THE TIP WAS PASSED ALONG TO ARTHUR ROY A YOUNG AGENT IN SAN DIEGO WHERE NHL IS BASED IT WAS THE FIRST MEDICARE COMPLAINT I'D EVER TAKEN A LOOK AT HE SAYS FIVE MONTHS LATER ANOTHER CALL CAME IN TO MR ROY THIS ONE FROM CHRISTOPHER JACK DOWDEN THEN A SAN DIEGO SALES MANAGER FOR METPATH HE WAS LOSING BUSINESS TO NHL AND COMPLAINED THAT HIS COMPETITOR WAS SOMEHOW MAKING MORE PROFITS AND CHARGING DOCTORS LESS BUT HE SAYS HE TOLD INVESTIGATORS THEY WERE LOOKING DOWN THE WRONG ALLEY NOBODY IS STUPID ENOUGH TO GIVE VOLUME DISCOUNTS BECAUSE KICKBACKS ARE BLATANTLY ILLEGAL RATHER MR DOWDEN SAYS HE THOUGHT NHL MIGHT BE SLIDING A FEW THOUSAND EXTRA TESTS A DAY INTO ITS BILLINGS UNDER THE COMPLEX RULES OF MEDICARE THE FEDERAL HEALTHCARE PROGRAM FOR THE ELDERLY LABORATORIES BILL THE GOVERNMENT DIRECTLY FOR SERVICES AT A FIXED FEE THE MOST COMMON SERVICE IS A PACKAGE OF ABOUT 18 TESTS PERFORMED ON A SINGLE BLOOD SAMPLE MEDICARE PAYS ABOUT 18 FOR THE PACKAGE LOCAL DOCTORS TOLD MR ROY THAT NHL HAD RECENTLY ADDED NEW TESTS TO ITS BASIC PACKAGE MEASUREMENT OF HIGHDENSITY LIPOPROTEIN THE GOOD CHOLESTEROL AND OF SERUM FERRITIN A SUBSTANCE THAT STORES OR TRANSPORTS IRON IN THE BLOOD HIGH GOODCHOLESTEROL READINGS ARE LINKED TO LOW RISK OF HEART DISEASE AND HIGH FERRITIN READINGS CAN INDICATE LIVER PROBLEMS OR LEUKEMIA FOR HIGHRISK PATIENTS THE HDL TEST MAY BE RECOMMENDED ABOUT TWICE A YEAR THE FERRITIN TEST ISN'T AS WIDELY ACCEPTED BY PHYSICIANS AND FEW PATIENTS NEED IT MR ROY ORDERED A PRINTOUT OF NHL'S MEDICARE BILLINGS FOR FERRITIN TESTS IN THE SAN DIEGO AREA FERRITIN WOULD BE EASIER TO TRACK THAN HDL BECAUSE IT HAD BEEN ADDED MORE RECENTLY TO THE BASIC PACKAGE SURE ENOUGH GOVERNMENT PAYMENTS HAD SHOT UP ALARM BELLS WENT OFF THE AGENT SAYS HE REFERRED THE CASE TO THE US ATTORNEY'S OFFICE A FEW BLOCKS AWAY SEPARATELY MR DOWDEN HIMSELF SUED NHL IN FEDERAL COURT IN LOS ANGELES UNDER A WHISTLEBLOWERS LAW THE STATUTE PROVIDES FOR A SUBSTANTIAL REWARD TO TIPSTERS WHOSE HELP LEADS TO GOVERNMENT RECOVERIES MR DOWDEN'S LAW FIRM IN LOS ANGELES HALL & PHILLIPS NEGOTIATED A 15 MILLION GOVERNMENT PAYMENT EARLIER THIS SUMMER THE NHL MATTER DIDN'T GET MUCH ATTENTION UNTIL THE SUMMER OF 1990 WHEN IT WAS ASSIGNED TO MS LAM WHEN THE ASSISTANT US ATTORNEY FIRST READ THE THIN FILE SHE WAS BEWILDERED IT DID SEEM THAT THERE WAS A SURGE IN ORDERS FOR CERTAIN TESTS BUT IT MIGHT JUST BE A BLIP LIMITED TO SAN DIEGO AND SHE DIDN'T KNOW WHY DOCTORS WERE REQUESTING MORE TESTS UNSURE WHAT TO DO SHE LAUNCHED A GRANDJURY INVESTIGATION THAT NOVEMBER INTERROGATING NHL EMPLOYEES AND SUBPOENAING THOUSANDS OF CORPORATE DOCUMENTS FROM NHL LABORATORIES AROUND THE COUNTRY WORD OF THE INVESTIGATION LEAKED TO NATIONAL INTELLIGENCE REPORT AN INDUSTRY NEWSLETTER IN A LETTER TO NHL SHAREHOLDERS IN DECEMBER 1990 MR DRAPER SOUNDED UNFAZED NHL IS CONFIDENT THAT IT CONFORMS WITH EVERY ESTABLISHED STATUTORY AND REGULATORY STANDARD AND THAT THE INQUIRY IS NOT MATERIAL THE PRESIDENT WROTE AMERICA'S WAR AGAINST SOARING HEALTHCARE COSTS WHICH HAS LONG FOCUSED ON DOLLARS GOING IN THE FRONT DOOR HAS OPENED A SECOND LINE OF ATTACK TO STANCH THE FLOW OF MONEY THAT GOES OUT THE BACK DOOR WITH ATTENTION RIVETED ON THE HILLARY RODHAM CLINTON TASK FORCE THAT SEEKS TO SLASH MEDICAL BILLS WHILE EXPANDING COVERAGE GOVERNMENT INVESTIGATORS HAVE QUIETLY BEEN BUILDING A POWERFUL APPARATUS TO STOP THE LOSS OF SOME 80 BILLION A YEAR THAT A CONGRESSIONAL STUDY ESTIMATES IS LOST THROUGH FRAUD AND ABUSE THE MEDICALFRAUD COPS ARE BEGINNING TO MAKE THEIR PRESENCE FELT JUST LAST WEEK MEDCHEK LABORATORIES INC A PITTSBURGH MEDICALTESTING CONCERN AGREED TO A 24 MILLION GOVERNMENT SETTLEMENT FOR MEDICARE FRAUD AND A ONCEDAZZLING OUTPATIENTTREATMENT COMPANY T2 MEDICAL INC ACKNOWLEDGES THAT AN ONGOING FEDERAL INQUIRY INVOLVES POSSIBLE ILLEGAL KICKBACKS TO DOCTORS FOR REFERRING PATIENTS TO FACILITIES IN WHICH THE PHYSICIANS HAVE A FINANCIAL STAKE THE ALPHARETTA GA COMPANY SAYS IT IS CONFIDENT THE MATTER WILL BE RESOLVED IN ITS FAVOR THE MEDCHEK PROSECUTORS WERE INSPIRED BY A CASE THAT HAS BECOME A MODEL FOR INVESTIGATORS ONE THAT HAS SENT A CHILL THROUGH THE HEALTHCARE INDUSTRY NATIONAL HEALTH LABORATORIES INC ONE OF THE COUNTRY'S LARGEST MEDICAL LABORATORY CHAINS AGREED LATE LAST YEAR TO A STAGGERING 1114 MILLION SETTLEMENT IN THE BIGGEST MEDICAREFRAUD CASE EVER NHL'S 56YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER ROBERT E DRAPER WAS SENTENCED IN APRIL TO THREE MONTHS IN FEDERAL PRISON AFTER A GUILTY PLEA THE EXECUTIVE SAID HE MADE MISTAKES BUT DIDN'T MEAN TO BREAK THE LAW WHEN CAUGHT CRIMINALS OFTEN MAKE SUCH STATEMENTS BUT THIS ONE SEEMS TO HAVE BACKING FROM AN UNLIKELY SOURCE THE PROSECUTOR A LOT OF ATTORNEYS YESTERDAY WOULD HAVE SAID THIS PRACTICE WAS LEGAL THENUS ATTORNEY WILLIAM BRANIFF SAID AFTER THE SETTLEMENT WAS ANNOUNCED THE LATEST CASES ARE A CLEAR SIGNAL THAT THE GOVERNMENT IS DEFINING HEALTHCARE FRAUD MORE BROADLY PROSECUTING IT MORE AGGRESSIVELY AND BRUSHING ASIDE TRADITIONAL DEFENSES PHYSICIANS AND EXECUTIVES WHOSE CRIMES WERE ONCE WINKED AT ARE NOW BEING LED AWAY IN HANDCUFFS SOME INSURANCE COMPANIES AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES'S INVESTIGATIVE ARM FOR YEARS HAVE TRIED TO REIN IN ABUSE BUT FOR LAW ENFORCEMENT HEALTHCARE FRAUD HAS BEEN SOMETHING OF A BACKWATER UNTIL NOW THE NHL CASE SHOWS BOTH THE MURKINESS OF THE GOVERNMENT'S MEDICARE RULES AND HOW COMPLEX MEDICALFRAUD CASES CAN BE TO PROSECUTE THE COMPANY WAS CONVICTED OF INDUCING DOCTORS TO ORDER UNNECESSARY BLOOD TESTS BY MISLEADING THEM ABOUT HOW MUCH NHL WAS BILLING MEDICARE THE COMPANY ARGUED THAT THE TESTS WERE VALUABLE AND THAT IT DIDN'T HAVE TO TELL DOCTORS HOW MUCH IT WAS PAID AT THE TIME NHL'S ILLEGAL PRACTICES STARTED IN 1987 NEW YORK INVESTOR RONALD O PERELMAN OWNED THE COMPANY THROUGH REVLON INC AND OTHER PRIVATE HOLDING COMPANIES SINCE NHL'S INITIAL PUBLIC OFFERING IN 1988 MR PERELMAN HAS GRADUALLY REDUCED HIS STAKE TO 22 BUT HE REMAINS NHL'S CHAIRMAN THE INVESTOR WASN'T PERSONALLY NAMED IN THE NHL CASE HE DECLINED THROUGH A SPOKESMAN TO COMMENT FOR THIS STORY NHL PROSECUTORS DON'T DISPUTE THE COMPANY'S CONTENTION THAT ITS BILLING PROCEDURES WERE A COMMON INDUSTRY PRACTICE THE NATION'S SECOND LARGESTLAB CHAIN CORNING INC'S METPATH CLINICALTESTING DIVISION IS ALSO UNDER INVESTIGATION WE ARE TALKING TO THE JUSTICE DEPARTMENT AND IT ISN'T A GOOD TIME TO DISCUSS THE ISSUES SAYS A SPOKESWOMAN FOR THE CORNING NY COMPANY THE INVESTIGATION ALSO AFFECTS UNILAB CORP A TARZANA CALIF SUCCESSOR TO CORNING'S CALIFORNIA OPERATIONS OTHER MAJOR LAB COMPANIES ARE EDGY WE'RE ALL KIND OF GROPING IN THE DARKNESS WONDERING WHAT THE RULES ARE NOW SAYS JERRY HAYDEN CHIEF FINANCIAL OFFICER OF ALLIED CLINICAL LABORATORIES OF NASHVILLE TENN MR HAYDEN SAYS HE ISN'T AWARE OF ANY PROBE OF HIS COMPANY BUT PROSECUTORS ARE STARTING TO HIT THEIR STRIDE SINCE LAST YEAR'S MOVE BY THE JUSTICE DEPARTMENT AND THE FEDERAL BUREAU OF INVESTIGATION TO ELEVATE HEALTHCARE FRAUD TO A TOP PRIORITY LAW ENFORCEMENT'S MOST POWERFUL TOOLS SUCH AS WIRETAPS ASSET SEIZURE AND THE FEARSOME RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTES ARE INCREASINGLY AIMED AT DOCTORS HOSPITALS AND OTHERS ACCUSED OF CHEATING THE NATION'S 800 BILLIONAYEAR HEALTHCARE SYSTEM THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION HAS SET UP HEALTHCARE FRAUD TASK FORCES IN MORE THAN A DOZEN CITIES FBI AGENTS INCLUDING SOME OF THE 50 REPROGRAMMED LAST YEAR TO MEDICAL FRAUD FROM COUNTERINTELLIGENCE HAVE MET WITH INSURANCECOMPANY GUMSHOES AT THE BUREAU'S TRAINING ACADEMY THE FBI'S HEALTHCARE CASES HAVE NEARLY TRIPLED TO 972 FROM 365 A YEAR AGO SAYS JOE FORD WHO OVERSEES THE NEW FRAUD SQUAD IN WASHINGTON IN THE PAST PROSECUTORS HAVE SHUNNED MEDICALFRAUD CASES BECAUSE THEY OFTEN INVOLVED LOTS OF SMALL CLAIMS AND HARDTOWIN DISPUTES WITH DOCTORS OVER THE MEDICAL NECESSITY OF TREATMENTS NOW WITH MORE HEALTH CARE BEING DELIVERED BY LARGE CORPORATIONS AND DOCTOR NETWORKS THE POTENTIAL FOR SYSTEMATIC LARGESCALE FRAUD IS GROWING AND IT IS EASIER TO GET CONVICTIONS PARTLY BECAUSE JURORS THESE DAYS ARE LESS LIKELY TO ASSUME THAT DOCTORS ARE SAINTS AND ARE MORE WILLING TO VIEW THEM AS PROFITMINDED BUSINESSPEOPLE HEALTHCARE DEFENSE LAWYERS ASSAILED THE NEW FEDERAL OFFENSIVE THE GOVERNMENT HAS BEGUN TO REALLY PUSH THE OUTSIDE OF THE ENVELOPE TO GO AFTER CONDUCT THAT ISN'T EXPRESSLY FORBIDDEN ANYWHERE CHARGED DEFENSE ATTORNEY CRAIG HOLDEN AT A LABORATORYINDUSTRY CONFERENCE IN WASHINGTON EARLIER THIS YEAR BREAKING GROUND THE NHL SETTLEMENT HAS PUT MEDICALFRAUD PROSECUTION ON THE MAP ALONGSIDE GROUNDBREAKING CASES IN THE SECURITIES DEFENSE AND THRIFT INDUSTRIES PROSECUTORS NEED COOKBOOKS AND THE NHL CASE IS AN EASYTOFOLLOW RECIPE SAYS JAMES G SHEEHAN CHIEF OF THE CIVIL DIVISION OF THE US ATTORNEY'S OFFICE IN PHILADELPHIA CAROL C LAM AN ASSISTANT US ATTORNEY WHO WAS THE LEAD PROSECUTOR IN THE NHL CASE HAS BEEN TRAVELING THE COUNTRY TO SHARE HER EXPERTISE WITH LAWENFORCEMENT AGENCIES INDEED THE LEAD PROSECUTOR IN THE MEDCHEK CASE FOLLOWED THE RECIPE I HAD GONE TO TWO DEPARTMENT OF JUSTICE CONFERENCES WHERE CAROL LAM WAS THE SPEAKER AND I SPOKE TO HER ABOUT THE CASE SAYS ANDREW QUINN AN ASSISTANT US ATTORNEY IN SCRANTON PA MEDCHEK LIKE NHL WAS CHARGED WITH MANIPULATING DOCTORS INTO ORDERING UNNECESSARY BLOOD TESTS CORNING WHICH RECENTLY ACQUIRED MEDCHEK ALONG WITH DAMON CORP SAID THE 24 MILLION SETTLEMENT WOULD BE PAID BY A PREVIOUS OWNER THE NHL CASE BEGAN WITH A PHONE TIP IN LATE AUGUST 1989 TO AN OFFICE OF THE INSPECTOR GENERAL OF HHS THE US GOVERNMENT AGENCY THAT INVESTIGATES MEDICARE AND SOCIAL SECURITY FRAUD SOMETHING WAS FISHY ABOUT NHL'S BILLING PRACTICES THE CALLER SAID HE THOUGHT THE COMPANY MIGHT BE OFFERING ILLEGAL VOLUME DISCOUNTS ON BLOOD TESTS THE LAB WOULD BENEFIT BY RECEIVING THE DOCTORS' MEDICARE BUSINESS THE TIP WAS PASSED ALONG TO ARTHUR ROY A YOUNG AGENT IN SAN DIEGO WHERE NHL IS BASED IT WAS THE FIRST MEDICARE COMPLAINT I'D EVER TAKEN A LOOK AT HE SAYS FIVE MONTHS LATER ANOTHER CALL CAME IN TO MR ROY THIS ONE FROM CHRISTOPHER JACK DOWDEN THEN A SAN DIEGO SALES MANAGER FOR METPATH HE WAS LOSING BUSINESS TO NHL AND COMPLAINED THAT HIS COMPETITOR WAS SOMEHOW MAKING MORE PROFITS AND CHARGING DOCTORS LESS BUT HE SAYS HE TOLD INVESTIGATORS THEY WERE LOOKING DOWN THE WRONG ALLEY NOBODY IS STUPID ENOUGH TO GIVE VOLUME DISCOUNTS BECAUSE KICKBACKS ARE BLATANTLY ILLEGAL RATHER MR DOWDEN SAYS HE THOUGHT NHL MIGHT BE SLIDING A FEW THOUSAND EXTRA TESTS A DAY INTO ITS BILLINGS UNDER THE COMPLEX RULES OF MEDICARE THE FEDERAL HEALTHCARE PROGRAM FOR THE ELDERLY LABORATORIES BILL THE GOVERNMENT DIRECTLY FOR SERVICES AT A FIXED FEE THE MOST COMMON SERVICE IS A PACKAGE OF ABOUT 18 TESTS PERFORMED ON A SINGLE BLOOD SAMPLE MEDICARE PAYS ABOUT 18 FOR THE PACKAGE LOCAL DOCTORS TOLD MR ROY THAT NHL HAD RECENTLY ADDED NEW TESTS TO ITS BASIC PACKAGE MEASUREMENT OF HIGHDENSITY LIPOPROTEIN THE GOOD CHOLESTEROL AND OF SERUM FERRITIN A SUBSTANCE THAT STORES OR TRANSPORTS IRON IN THE BLOOD HIGH GOODCHOLESTEROL READINGS ARE LINKED TO LOW RISK OF HEART DISEASE AND HIGH FERRITIN READINGS CAN INDICATE LIVER PROBLEMS OR LEUKEMIA FOR HIGHRISK PATIENTS THE HDL TEST MAY BE RECOMMENDED ABOUT TWICE A YEAR THE FERRITIN TEST ISN'T AS WIDELY ACCEPTED BY PHYSICIANS AND FEW PATIENTS NEED IT MR ROY ORDERED A PRINTOUT OF NHL'S MEDICARE BILLINGS FOR FERRITIN TESTS IN THE SAN DIEGO AREA FERRITIN WOULD BE EASIER TO TRACK THAN HDL BECAUSE IT HAD BEEN ADDED MORE RECENTLY TO THE BASIC PACKAGE SURE ENOUGH GOVERNMENT PAYMENTS HAD SHOT UP ALARM BELLS WENT OFF THE AGENT SAYS HE REFERRED THE CASE TO THE US ATTORNEY'S OFFICE A FEW BLOCKS AWAY SEPARATELY MR DOWDEN HIMSELF SUED NHL IN FEDERAL COURT IN LOS ANGELES UNDER A WHISTLEBLOWERS LAW THE STATUTE PROVIDES FOR A SUBSTANTIAL REWARD TO TIPSTERS WHOSE HELP LEADS TO GOVERNMENT RECOVERIES MR DOWDEN'S LAW FIRM IN LOS ANGELES HALL & PHILLIPS NEGOTIATED A 15 MILLION GOVERNMENT PAYMENT EARLIER THIS SUMMER THE NHL MATTER DIDN'T GET MUCH ATTENTION UNTIL THE SUMMER OF 1990 WHEN IT WAS ASSIGNED TO MS LAM WHEN THE ASSISTANT US ATTORNEY FIRST READ THE THIN FILE SHE WAS BEWILDERED IT DID SEEM THAT THERE WAS A SURGE IN ORDERS FOR CERTAIN TESTS BUT IT MIGHT JUST BE A BLIP LIMITED TO SAN DIEGO AND SHE DIDN'T KNOW WHY DOCTORS WERE REQUESTING MORE TESTS UNSURE WHAT TO DO SHE LAUNCHED A GRANDJURY INVESTIGATION THAT NOVEMBER INTERROGATING NHL EMPLOYEES AND SUBPOENAING THOUSANDS OF CORPORATE DOCUMENTS FROM NHL LABORATORIES AROUND THE COUNTRY WORD OF THE INVESTIGATION LEAKED TO NATIONAL INTELLIGENCE REPORT AN INDUSTRY NEWSLETTER IN A LETTER TO NHL SHAREHOLDERS IN DECEMBER 1990 MR DRAPER SOUNDED UNFAZED NHL IS CONFIDENT THAT IT CONFORMS WITH EVERY ESTABLISHED STATUTORY AND REGULATORY STANDARD AND THAT THE INQUIRY IS NOT MATERIAL THE PRESIDENT WROTE MEANWHILE TWO IG AUDITORS BEGAN THE DAUNTING TASK OF COLLECTING NHL BILLING DATA FROM MEDICARE OFFICES NATIONWIDE AS THE RECORDS ROLLED IN OVER THE NEXT YEAR THE EXPLOSIVE GROWTH IN NHL'S FERRITIN BILLINGS BECAME APPARENT THEY JUMPED TO MORE THAN 31 MILLION IN 1990 THE YEAR AFTER NHL ADDED FERRITIN TO ITS PACKAGE FROM LESS THAN 500000 TWO YEARS EARLIER BUT PROVING FRAUD MEANT SHOWING THAT DOCTORS HAD BEEN TRICKED BY NHL AN IMPORTANT BREAK CAME SOON MS LAM LEARNED THAT IN 1987 NHL AND A SMALL SAN DIEGO MARKETING FIRM CREATED A SLICK CAMPAIGN TO PUSH CHOLESTEROL TESTS A GLOSSY LETTER TO DOCTORS STUFFED INSIDE AN OVERSIZED GLASS TEST TUBE TOUTED A NEW LEVEL OF SOPHISTICATION IN OUR INSTRUMENTATION AND METHODOLOGY IT IMPLIED THAT A TECHNOLOGICAL BREAKTHROUGH HAD ENABLED NHL TO MAKE CHOLESTEROL PART OF THE BLOODTEST PACKAGE AT LITTLE OR NO ADDITIONAL COST WHILE THERE INDEED HAD BEEN A TECHNOLOGICAL ADVANCE NHL WAS STILL RUNNING TESTS FOR ITS BASIC PACKAGE ON ONE MACHINE A SEQUENTIAL MULTIPLE ANALYSIS COMPUTER OR SMAC AND RUNNING THE CHOLESTEROL TEST ON DIFFERENT EQUIPMENT DOCTORS WEREN'T TOLD THAT NHL BILLED MEDICARE SEPARATELY FOR THE BASIC PACKAGE AND THE CHOLESTEROL TEST NEARLY DOUBLING THE COMPANY'S BILL FOR EACH PATIENT TWO YEARS LATER NHL ADDED FERRITIN APPARENTLY TO REINFORCE THE ILLUSION THAT ALL THE TESTS WERE DONE TOGETHER NHL REVISED ITS ORDER FORMS DOCTORS WHO CHECKED A BOX FOR THE BASIC PACKAGE NOW AUTOMATICALLY ORDERED CHOLESTEROL AND FERRITIN TESTS TOO PROSECUTORS SAW THE WAY IN WHICH THE NEW TESTS WERE ADDED TO THE FORM AS STRONG EVIDENCE OF AN INTENT TO MISLEAD DOCTORS AS THE INVESTIGATION HEATED UP NHL RESPONDED WITH STACKS OF NEWS ARTICLES AND SCIENTIFIC PAPERS DOCUMENTING THE VALUE OF THE CHOLESTEROL AND FERRITIN TESTS BEFORE CAT SCANS WERE DEVELOPED THE COMPANY ARGUED THERE WAS LITTLE DEMAND FOR THEM EITHER NHL ALSO GAVE PROSECUTORS COPIES OF A 1987 LETTER THAT HAD NOTIFIED THE COMPANY'S 30000 PHYSICIANCLIENTS THAT CHOLESTEROL WAS BEING ADDED TO THE PACKAGE CLEARLY PHYSICIANS WEREN'T FORCED TO ORDER ANY TESTS SAYS A LAWYER WITH KNOWLEDGE OF NHL'S POSITION DOCTORS WERE TOLD THEY COULD REQUEST A CUSTOMIZED ORDER FORM IF THEY DIDN'T WANT THE ENHANCED PACKAGE AND NEARLY 20 TOOK THE COMPANY UP ON ITS OFFER THE LAWYER SAYS THE COMPANY'S LETTER DIDN'T NOTE HOWEVER THAT MEDICARE WOULD BE BILLED AN ADDITIONAL SEPARATE AMOUNT FOR THE NEW TEST BY THIS TIME THE COMPANY HAD MOVED INTO THE SIGHTS OF AN ARMY OF STATE AND FEDERAL AGENCIES INCLUDING SEVERAL STATE MEDICAID FRAUD UNITS THAT ALSO WERE DISCOVERING THAT THEIR PAYMENTS TO NHL HAD SKYROCKETED NHL'S BATTALION OF ATTORNEYS WERE FENDING OFF ADMINISTRATIVE CIVIL AND CRIMINAL PROCEEDINGS CALLING THE SHOTS WAS BARRY SCHWARTZ GENERAL COUNSEL OF MACANDREWS & FORBES HOLDINGS INC ONE OF MR PERELMAN'S PRIVATE HOLDING COMPANIES MS LAM SAYS SOME OF NHL'S ARGUMENTS GAVE HER PAUSE SHE WORRIED ABOUT OVERCOMING EVIDENCE THAT DOCTORS HAD BEEN TOLD ABOUT THE CHANGES HOW COULD SHE SHOW THEY HAD BEEN DECEIVED THE ANSWER CAME WALKING INTO HER OFFICE ON JULY 1 1992 MARK WEDEL A 47YEAROLD DOCTOR AND SECONDYEAR LAW STUDENT HAD JUST JOINED THE PROSECUTOR'S OFFICE AS A PARTTIME INTERN AND HE GAVE MS LAM THE MISSING PIECE OF THE PUZZLE DR WEDEL EXPLAINS THAT EVERY TIME PHYSICIANS ORDER A SMAC THEY GET MORE TESTS THAN THEY NEED BECAUSE IT IS ECONOMICAL THE DOCS PROBABLY THOUGHT THE CHOLESTEROL TEST WAS JUST MORE FREE INFORMATION HE SAYS THEY DIDN'T KNOW THAT EVERY TIME THEY ORDERED A SMAC THE REGISTER RANG THREE TIMES FOR NHL GETTING THE DOCTOR'S PERSPECTIVE WAS A REAL TURNING POINT MS LAM SAYS NOW PROSECUTORS HAD TO TEST THE THEORY HUDDLED AROUND THE SPEAKER PHONE IN MS LAM'S SPARTAN OFFICE MS LAM DR WEDEL AND AN FBI AGENT BEGAN PHONING DOCTORS IF YOU KNEW THAT ORDERING HDL AND FERRITIN WOULD TRIPLE THE COST OF A BLOOD TEST WOULD YOU STILL WANT THEM THEY ASKED THEIR LIST INCLUDED NHL'S OWN SCIENTIFIC ADVISERS SUCH AS WILLIAM P CASTELLI DIRECTOR OF THE PIONEERING FRAMINGHAM HEART STUDY AND DANIEL STEINBERG A LEADING CHOLESTEROL AUTHORITY AT THE UNIVERSITY OF CALIFORNIA IN SAN DIEGO AFTER A FEW CALLS THE REACTIONS BECAME PREDICTABLE WE STARTED PLAYING A GAME DR WEDEL SAYS AS TO HOW MANY MINUTES INTO THE CONVERSATION IT WOULD BE UNTIL THE EXPERT SAID OH MY GOD THAT WOULD BE FRAUD WOULDN'T IT' AT THAT MOMENT HE ADDS THE PROSECUTION TEAM WOULD CHECK THEIR WATCHES WE'D SAY WHAT TIME IS IT' THIS GUY'S BRIGHTER BECAUSE HE FIGURED IT OUT IN SIX MINUTES AND THAT GUY TOOK NINE MINUTES MS LAM TOLD NHL'S ATTORNEYS THAT SHE WAS READY TO ASK THE GRAND JURY FOR AN INDICTMENT SETTLEMENT TALKS INTENSIFIED THE PROSECUTOR AND HER WASHINGTON SUPERIORS WERE DETERMINED TO SEND A MESSAGE THAT HEALTHCARE FRAUD IS A SERIOUS CRIME THE COMPANY AND AT LEAST ONE OF ITS OFFICERS WOULD HAVE TO BE HELD CRIMINALLY ACCOUNTABLE NHL'S LAWYERS MADE TWO MAJOR PRESENTATIONS TO THE JUSTICE DEPARTMENT IN WASHINGTON SEEKING TO HAVE AT LEAST THE CRIMINAL PORTION OF THE CASE SET ASIDE THIS IS A POLICY ISSUE A QUESTION OF REGULATIONS AND NOT AN ENFORCEMENT MATTER THEY ARGUED PROSECUTORS DISAGREED THE CASE MET THE TEST FOR FRAUD THEY SAID NHL SUBVERTED DOCTORS' JUDGMENT THE GOVERNMENT BELIEVING THAT DOCTORS' DISCRETION HAD BEEN EXERCISED PAID THE BILLS THAT'S WHAT A SOPHISTICATED CRIMINAL DOES SAYS DAVID W WATERBURY DIRECTOR OF WASHINGTON STATE'S MEDICAID FRAUD UNIT HE FIGURES OUT HOW TO STEAL FROM A VICTIM NOT BY PICKING HIS POCKET BUT BY CREATING IN THE VICTIM'S MIND A SET OF CIRCUMSTANCES THAT LEADS HIM TO REMOVE HIS WALLET OPEN IT AND HAND THE CROOK A DOLLAR ADDS MR WATERBURY WHO COORDINATED MORE THAN 30 STATE AGENCIES INVOLVED IN THE NHL SETTLEMENT TALKS FACING THE GOVERNMENT'S BIG GUNS NHL CAVED IN THE COMPANY WITH 6000 EMPLOYEES FEARED FEDERAL RICO LAWS AND SANCTIONS THAT INCLUDED AUTOMATIC EXCLUSION FROM THE MEDICARE PROGRAM SUCH A BAN WOULD HAVE PUT THE COMPANY OUT OF BUSINESS BECAUSE DOCTORS WOULDN'T USE A LAB THAT COULDN'T SERVE ALL THEIR PATIENTS THE COMPANY HAD TO MAKE A DECISION AND THE DECISION WAS WE WANT TO LIVE SAID THE ATTORNEY FAMILIAR WITH THE COMPANY'S VIEWS NHL PLEADED GUILTY LAST DEC 18 TO TWO FELONY COUNTS OF SUBMITTING FALSE CLAIMS TO THE CIVILIAN HEALTH AND MEDICAL PROGRAM FOR THE UNIFORMED SERVICES WHICH PROVIDES CARE TO MILITARY FAMILIES CHAMPUS VIOLATIONS DON'T TRIGGER THE AUTOMATIC MEDICARE SUSPENSION THE 1114 MILLION GLOBAL CIVIL SETTLEMENT INCLUDED AGREEMENTS WITH ALL THE STATE MEDICAID AGENCIES THAT LEFT THE CORPORATE OFFICERS UNDER THE GOVERNMENT'S THREAT TO INDICT FIVE OF HIS COLLEAGUES MR DRAPER AGREED TO TAKE THE FALL SAYING THAT THE COMPANY'S ACTIONS OCCURRED DURING HIS TENURE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER ONE OTHER OFFICER A SENIOR VICE PRESIDENT WHO HAD A HAND IN THE BILLING SCHEME AGREED TO RESIGN FROM THE COMPANY AT THE SENTENCING HEARING MR DRAPER'S LAWYER STILL INSISTED THAT THE GOVERNMENT HAD UNFAIRLY LOWERED THE THRESHOLD OF DEFINING HEALTHCARE CRIMES BECAUSE OF THAT CHANGE IN INTERPRETATION BY THE GOVERNMENT MR DRAPER IS HERE TODAY PROSECUTORS HAD LITTLE SYMPATHY FEDERAL JUDGE EARL B GILLIAM IN SAN DIEGO SENTENCED THE LONGTIME PRESIDENT TO THREE MONTHS IN PRISON TO BE FOLLOWED BY TWO MONTHS IN A HALFWAY HOUSE OR HOME DETENTION THREE YEARS SUPERVISED RELEASE AND A 500000 PERSONAL FINE BEFORE THE JUDGE PRONOUNCED SENTENCE MR DRAPER MUTTERED THAT HE WISHED HE COULD HAVE LEFT HIS JOB UNDER MORE NORMAL CONDITIONS WITH A DINNER AND A GOLD WATCH LAWENFORCEMENT OFFICIALS SAY THE FOLLOWING AREAS ARE RIPE FOR FUTURE PROSECUTION A DOCTOR LABORATORY OR OTHER HEALTHCARE PROVIDER TRIES TO INCREASE REIMBURSEMENT BY MANIPULATING BILLING CODES ON MEDICARE OR PRIVATEINSURANCE CLAIMS FORMS IN UPCODING A HIGHERPAYING CODE IS GIVEN IN UNBUNDLING A SINGLE SERVICE SUCH AS A HYSTERECTOMY IS BILLED AS A SERIES OF SEPARATE PROCEDURES THERE IS MONEY TO BE MADE BY DISREPUTABLE PHARMACISTS IN SUBSTITUTING GENERIC DRUGS FOR BRAND NAMES IN OPERATION GOLDPILL LAST YEAR FEDERAL AGENTS ARRESTED MORE THAN 80 PHARMACISTS WHO ALLEGEDLY OVERCHARGED FOR GENERIC DRUGS AND SPLIT PRESCRIPTIONS IN ORDER TO COLLECT ADDITIONAL DISPENSING FEES SOME HOSPITALS OFFER LUCRATIVE CONTRACTS TO DOCTORS INCLUDING GUARANTEED INCOME AND FREE RENT IN EXCHANGE FOR PATIENT REFERRALS THIS GENERALLY VIOLATES FEDERAL ANTIKICKBACK LAWS BUT THERE ARE MANY GRAY AREAS MEDICARE LAW PROHIBITS PHYSICIANS FROM REFERRING PATIENTS TO LABORATORIES IN WHICH THEY HAVE A FINANCIAL INTEREST SOME STATES ALSO BAR SELFREFERRALS TO OTHER MEDICAL FACILITIES BILLS PENDING IN CONGRESS WOULD EXTEND THE FEDERAL BAR TO FACILITIES SUCH AS HOSPITALS OR RADIOLOGY CENTERS AND ALSO COVER PRIVATE PATIENTS SEE RELATED LETTER LETTERS TO THE EDITOR BUDGET ACT PROHIBITS DOCTORS' SELFREFERRALS WSJ SEPT 16 1993 9308160103 YY93 MM09 9309160076 930820 LETTERS TO THE EDITOR COKE IN VIETNAM SO MUCH FOR EMBARGOES YOUR JULY 20 ARTICLE COCACOLA INDOCHINA SET PACT TO START JOINT VENTURE NO DOUBT AMUSED AMERICANS WHO HAVE TRAVELED TO VIETNAM IN THE PAST TWO YEARS I HAVE JUST RETURNED FROM A MONTH'S VISIT AND COCACOLA IS FOR SALE EVERYWHERE IN VIETNAM FROM HANOI TO HO CHI MINH CITY ONE CAN BUY COKE AT HOTELS CAFES RESTAURANTS AND ROADSIDE STANDS AND BEST OF ALL THIS YEAR THEY KEEP IT ON ICE THE CANS ALL READ F&N COCACOLA PTE LTD 457 JALAN AHMAD IBRAHIM SINGAPORE 2263 UNDER THE AUTHORITY OF THE COCACOLA COMPANY THE PROFITS OBVIOUSLY RUN THROUGH SINGAPORE AND BACK TO THE PARENT COMPANY IN THE GOOD OLD USA YOU WROTE THAT F&N COCACOLA PTE LTD A REGIONAL BOTTLER OF COKE IS WAITING FOR THE EMBARGO TO LIFT BECAUSE THEY ARE NOW PROHIBITED FROM TRADING WITH VIETNAM DON'T BELIEVE THAT PRESS RELEASE COCACOLA IS MOST CERTAINLY GETTING MONEY FROM ALL THOSE COKES SOLD IN VIETNAM AND LAUGHING AT THE TRADE EMBARGO ALL THE WAY TO THE BANK AS AN ASIDE 7 UP IS ALSO READILY AVAILABLE AND IN THE REX HOTEL IN HO CHI MINH CITY I ASKED FOR MUSTARD AND GOT HJ HEINZ CO PITTSBURGH PA 15212 DISTRIBUTED BY HARPER'S TRADING S PTE LTD 34 BOON LEAT TERRACE SINGAPORE 0511 SEE RELATED LETTER LETTERS TO THE EDITOR COLA WAS EVERYWHERE DURING VIETNAM WAR WSJ SEPT 16 1993 9308200016 YY93 MM09 9309160048 930824 LETTERS TO THE EDITOR CANADIAN HEALTH CARE IS ON RIGHT TRACK CANADIANS ROUTINELY ARE STUNNED AND OUTRAGED AT THE DISTORTIONS OF THEIR HEALTH CARE SYSTEM THAT HAVE APPEARED IN THE US PRESS SINCE HEALTH REFORM BEGAN MOVING UP ON THE AGENDA IN THIS COUNTRY DR JEROME C ARNETT JR IN AN AUG 6 AMERICAS COLUMN COMBINES INNUENDO WITH INACCURACY TO ARGUE THAT A SYSTEM BASED ON SIMILAR TENETS COULD NOT WORK IN THE US THE AMERICAN HEALTH SECURITY ACT THAT I INTRODUCED CALLS FOR PUBLIC ACCOUNTABILITY IN PROVIDING AFFORDABLE ACCESSIBLE HEALTH CARE OF HIGH QUALITY IN THIS RESPECT IT BORROWS MUCH FROM WHAT CANADA DOES RIGHT LIKE STREAMLINING ADMINISTRATION AND CONTROLLING COSTS DURING MY VISIT THERE LAST YEAR I COULD NOT FIND A SINGLE DOCTOR HOSPITAL OR CONSERVATIVE POLITICIAN WHATEVER THEIR OTHER COMPLAINTS WHO WOULD ABANDON THE BASIC PRINCIPLE OF PUBLIC CONTROL OVER THE SYSTEM A US SYSTEM BASED ON THIS MODEL WOULD REFLECT AMERICAN CHOICES TO SPEND MORE AS A SOCIETY THAN CANADA DOES ON HEALTH CARE AND TECHNOLOGY TO SEEK METHODS OF MAKING OUR DELIVERY SYSTEM MORE EFFICIENT AND TO SUPPORT A BROAD ARRAY OF PROVIDERS AND TREATMENTS TO CLEAR THE RECORD ON CANADA THOUGH THE AVERAGE PRIMARY CARE DOCTOR'S SALARY IN CANADA IS 128000 SOMEWHAT HIGHER THAN IN THE US NOT 50000 AS DR ARNETT ALLEGES AND SPECIALISTS AVERAGE MORE THAN TWICE THAT AMOUNT FURTHERMORE DR ARNETT CHARGES THAT CANADIAN HEALTH CARE COSTS HAVE ESCALATED TO 8600 A YEAR FOR A FAMILY OF FOUR HE NEGLECTS TO MENTION THAT THE COMPARABLE FIGURE FOR THE US IN 1992 WAS 12400 BY CONSERVATIVE ESTIMATES THE PATIENT WAITING TIMES HE QUOTES FROM THE FRASER INSTITUTE HAVE NEVER SEEN THE LIGHT OF AN ACADEMIC PUBLICATION SINCE THEY ARE BASED ON UNSCIENTIFIC SURVEYS SOME CANADIANS DO WAIT FIVE WEEKS TO SEE A SPECIALIST AS DO SOME AMERICANS BECAUSE THEY WANT TO SEE A PARTICULAR PROVIDER OF THEIR CHOICE MORE AMERICANS GO TO MEXICO FOR HEALTH CARE THAN THE NUMBER OF CANADIANS WHO COME TO THE US IN FACT THE PEPPER COMMISSION STUDY OF US HOSPITALS NEAR THE CANADIAN BORDER FOUND THAT FEWER THAN ONE PERCENT CAME FROM CANADA TWO HUNDRED PEOPLE OVER HALF OF THEM CLERICAL STAFF ADMINISTER THE 8 BILLION HOSPITAL BUDGET FOR THE PROVINCE OF ONTARIO FAR FROM A BURDENSOME OPERATION IN ADDITION 99 OF PHYSICIAN CLAIMS ARE PAID WITHIN TWO TO FOUR WEEKS THE CANADIAN HOSPITAL SYSTEM HAS PROLIFERATED BEYOND STANDARDS OF NECESSITY AND CANADIANS USE ABOUT 30 MORE HOSPITAL DAYS THAN DO AMERICANS THE GOVERNMENT'S RECENT DECISIONS TO CLOSE A NUMBER OF HOSPITALS HAS BEEN IN PART PROMPTED BY THE RECESSION HOWEVER THE IMPACT ON CANADA'S QUALITY OF CARE IS LIKELY TO BE NEGLIGIBLE DR ARNETT IS CORRECT IN OBSERVING THAT CUTS IN COSTS BY THE MULRONEY GOVERNMENT HAVE THREATENED THE SECURITY OF MANY DOCTORS BUT A STUDY BY HARVARD PROFESSOR ROBERT BLENDON PUBLISHED IN APRIL IN THE NEW ENGLAND JOURNAL OF MEDICINE SHOWED THAT CANADIAN DOCTORS ARE MUCH MORE SATISFIED WITH THEIR SYSTEM THAN THEIR US COUNTERPARTS DR ARNETT'S DESCRIPTION OF THE LIKELY EFFECTS OF A SINGLEPAYER SYSTEM ON THE US COULD WELL DESCRIBE OUR OWN SYSTEM IN AUGUST 1993 ESCALATION OF COSTS AN INSURANCE BUREAUCRACY MICROMANAGING EVERY ASPECT OF CARE A LOWERING OF THE QUALITY OF MEDICAL CARE RATIONING AND DENIAL OF CARE AND THE LOSS OF BOTH CIVIL LIBERTIES SUCH AS HEALTH CARE IN EMERGENCIES AND OF FREEDOM OF CHOICE BY PATIENTS AND DOCTORS SEE RELATED LETTER LETTERS TO THE EDITOR WHY CANADA'S DOCTORS FLEE SOUTH WSJ SEPT 16 1993 9308240053 YY93 MM09 9309160046 930810 IN THE LAB US LAB FIGHTS FURNITURE FIRES WITH FIRE BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL GAITHERSBURG MD THE LAB TECHNICIAN IGNITES A WAD OF NEWSPAPERS ON A NEW WHITE UPHOLSTERED CHAIR AND WATCHES AS THE SEAT CUSHION BEGINS TO FLAME NEXT A BLACK CHAR SPREADS ACROSS THE SEAT BACK AND ARMRESTS AND STREAMS OF SMOKE RISE AND ARE SWEPT INTO AN OVERHEAD HOOD WHERE GASES CAN BE ANALYZED SETTING THE FURNITURE ON FIRE IS THE FOCUS INSIDE BUILDING 205 ON A GRASSY CAMPUS OF GOVERNMENT LABORATORIES SOMETIMES THE WORKERS MOVE ON TO BIGGER PREY LIKE SOFAS THEY WANT TO KNOW EXACTLY WHY SOME PIECES OF UPHOLSTERED FURNITURE BURN MORE INTENSELY THAN OTHERS ULTIMATELY THEY WOULD LIKE TO DEVISE A WAY TO PREDICT FROM SMALL SAMPLES WHICH FURNITURE DESIGNS AND MATERIALS ARE SAFER WHEN EXPOSED TO FLAMES WITHOUT HAVING TO BURN A WHOLE PIECE OF FURNITURE EACH TIME THE TESTS MAY ONE DAY HELP LIMIT THE DAMAGE THAT DOMESTIC FIRES CAN CAUSE WE HAVE RELATIVELY SEVERE FIRE CODES FOR BUILDINGS AND YET YOU HAVE CONSIDERABLE FREEDOM TO MAKE YOUR BUILDING UNSAFE AS YOU CHOOSE THE FURNISHINGS SAYS RICHARD WRIGHT DIRECTOR OF THE BUILDING AND FIRE RESEARCH LABORATORY AT THE GOVERNMENT'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ONE PIECE OF FURNITURE BURNING CAN KILL EVERYONE IN A REASONABLESIZED HOUSE EVEN IF NOTHING ELSE BURNS IT'S NOT JUST RESEARCHERS AT NIST WHO ARE TURNING NEW ATTENTION TO UPHOLSTERED FURNITURE IN FIRES IN 1978 FURNITURE MANUFACTURERS HEADED OFF FEDERAL REGULATION BY AGREEING TO A VOLUNTARY PROGRAM FOR TESTING HOW FABRICS RESPOND TO SMOLDERING CIGARETTES SINCE THEN THE NUMBERS OF DEATHS IN RESIDENTIAL FIRES WHERE UPHOLSTERED FURNITURE WAS IGNITED BY SMOKING MATERIALS HAS PLUNGED FROM 1300 TO 610 IN 1990 A 53 DROP STILL AN AVERAGE OF 1002 PEOPLE DIE EVERY YEAR IN RESIDENTIAL FIRES IN WHICH AN UPHOLSTERED CHAIR OR SOFA IS THE FIRST ITEM IGNITED AND THE LARGEST FRACTION OF HOME FIRES THAT RESULT IN DEATHS 215 START WITH UPHOLSTERED FURNITURE LAST YEAR CALIFORNIA BECAME THE FIRST STATE TO ORDER THAT UPHOLSTERED FURNITURE IN HOTEL MEETING ROOMS PRISONS NURSING HOMES AND PUBLICASSEMBLY AREAS PASS A RIGOROUS TEST EXPOSING IT TO AN OPEN FLAME ILLINOIS AND OHIO HAVE ADOPTED SIMILAR PROVISIONS AND OTHER STATES ARE CONSIDERING THEM THE US CONSUMER PRODUCT SAFETY COMMISSION AFTER DECLINING TO REGULATE FURNITURE FOR FIRE SAFETY IN 1982 IS RECONSIDERING AND MAY IMPOSE A NATIONWIDE FLAMMABILITY STANDARD ON UPHOLSTERED FURNITURE AS IT HAS FOR CHILDREN'S SLEEPWEAR MATTRESSES AND CARPETS FURNITURE MANUFACTURERS CONCEDE THAT OPEN FLAMES ARE A PROBLEM BUT SAY THAT THE SMOLDERING CIGARETTE TEST ALREADY ADDRESSES THE CAUSE OF ALMOST 80 OF HOME FIRES INVOLVING UPHOLSTERED FURNITURE BUT JACK SNELL A FORMER PRINCETON PROFESSOR WHO'S DEPUTY DIRECTOR OF THE LAB SAYS THE PROBLEM IS THAT SOME SYNTHETIC MATERIALS WON'T CATCH FIRE WHEN EXPOSED TO A SMOLDERING CIGARETTE BUT WILL FLARE UP DANGEROUSLY WHEN EXPOSED TO AN OPEN FLAME IN THE DEMONSTRATION TEST BURN TWO MINUTES AFTER THE CHAIR IS SET ABLAZE THE FIRE IS JUST BEGINNING TO BORE INTO THE POLYURETHANE FOAM SEATBACK IT COULD HAVE BEEN FAR WORSE AT THIS POINT THE FOAM CUSHIONS IN SOME FURNITURE WOULD HAVE COMPLETELY CAUGHT FIRE AND SET OFF SUCH AN INTENSE BLAZE THAT EVERYTHING IN THE ROOM WOULD BE LIABLE TO BURST INTO FLAME A CRITICAL POINT KNOWN AS FLASHOVER ONCE THAT HAPPENS SAYS DR SNELL YOU COULD BE ASLEEP IN A BEDROOM THREE ROOMS AWAY OR ON THE SECOND FLOOR AND SO MUCH GAS IS COMING OUT OF THE ROOM THAT WHEN YOUR SMOKE DETECTOR GOES OFF IT'S PROBABLY ONLY GIVING YOU ENOUGH TIME TO TELL YOU YOU'RE OUT OF LUCK AS HE PEERS THROUGH AN OPEN DOORWAY INTO THE BARE ROOM WHERE THE WHITE CHAIR IS ABLAZE CHIEF LAB TECHNICIAN EMIL BRAUN SAYS THAT A LAYER OF COTTON BATTING BETWEEN THE CHAIR'S POPLIN FABRIC AND ITS FOAM CUSHION IS PROBABLY THE REASON THIS BLAZE HASN'T TAKEN OFF QUICKER A TEAM HERE HAS BEEN WORKING ON A PROJECT WITH DUPONT CO TO STUDY SUCH FLAMERESISTANT MATERIALS ALREADY USED BY AIRLINES BETWEEN THE FABRIC AND CUSHION WATCHING THE IGNITED CHAIR A CRITICAL MOMENT COMES AT THE 16MINUTE MARK OK HERE WE GO LOOK AT THAT SAYS MR BRAUN TWIN FLAMES LIKE THE HORNS OF A DEVIL ARE FLARING OUT OF THE CHAIR THERE'S ONLY A VOID WHERE THE FOAM SEATBACK HAS BEEN CONSUMED BLACK ASH THE SIZE OF FRESHLY GROUND PEPPER IS WAFTING TO THE OBSERVATION AREA THEN ORANGE AND BLUE FLAMES BEGIN TO CREEP UP THE SCORCHED SHEETROCK WALL AND ACROSS THE CEILING WE JUST HIT THE POINT OF FLASHOVER EXPLAINS ANDREW FOWELL CHIEF OF THE FIRESAFETY ENGINEERING DIVISION IF YOU WERE IN THIS ROOM YOU'D BE PRETTY WELL TOASTED BY NOW AND THAT'S ONLY A CHAIR NOT A SOFA ONCE IT'S PAST THE FLASHOVER POINT THE FIRE SLOWLY BEGINS TO SUBSIDE THOUGH IT WILL BURN ANOTHER 25 MINUTES OR SO IN THE MEANTIME PROBES IN THE EXHAUST PIPE ABOVE THE HOOD ALLOW RESEARCHERS TO SAMPLE THE SMOKE ALTHOUGH SYNTHETIC FIBERS CAN GIVE OFF POISONOUS GASES SUCH AS CYANIDE THE PREDOMINANT DANGER AND PRIMARY KILLER IS CONSIDERED TO BE CARBON MONOXIDE THE SAME SUFFOCATING BYPRODUCT THAT COMES OUT OF CAR TAILPIPES WORK IS UNDER WAY NOW TO COMPARE THE RESULTS OF FULLSCALE BURNS WITH SMALLSCALE TESTS RUN ON SAMPLES IN ANOTHER NIST LAB ON THE SAME CAMPUS IN THE SMALLSCALE TEST LAB A BULKY CUSTOMBUILT MACHINE CALLED A CONE CALORIMETER FILLS HALF THE ROOM A SANDWICHSIZED BLOCK OF LIGHTBROWN FOAM IS PLACED UNDER WHAT LOOKS LIKE A GLOWING CONESHAPED HOT PLATE THE FOAM ALMOST INSTANTLY FLARES AND JUST AS IN THE FULLSCALE LAB A MASS OF TUBES AND EXHAUST PIPES ANALYZE SAMPLES OF GASES RESEARCHERS READILY ADMIT THAT THEY DON'T YET UNDERSTAND ENOUGH TO BE ABLE TO RELIABLY PREDICT HOW A PIECE OF FURNITURE WOULD STAND UP TO A FLAME BASED ONLY ON THE TESTING OF SAMPLES IN THE FIRST PLACE THERE ARE THOUSANDS OF COMBINATIONS OF FABRICS AND MATERIALS THAT CHANGE EVERY SIX MONTHS OR SO WITH THE WHIMS OF FURNITURE FASHION FIBERS CAN REACT DIFFERENTLY DEPENDING ON WHETHER THEY'RE BLENDED WITH ANOTHER MATERIAL AND EVEN HOW THEY'RE WOVEN HOW MUCH OXYGEN IS AVAILABLE IN A FIRE ALSO MAKES A DIFFERENCE EVEN THE SHAPE OF THE CHAIR MATTERS ENCLOSED ARMS CAN INCREASE THE HEAT RADIATION PROMPTED BY BRITAIN WHICH HAS SOME OF THE TOUGHEST FURNITURE FIRE STANDARDS THE EUROPEAN COMMUNITY HAS EMBARKED ON A 2 MILLION CRASH PROGRAM TO LOOK INTO FURNITURE FLAMMABILITY BY COMPARISON THE US'S 250000AYEAR PROGRAM IS SMALL AND HOPES TO RELY ON SOME OF THE DATA THE EUROPEANS WILL GENERATE MEANWHILE NIST MAY HAVE NO REGULATORY SAY BUT WHAT IT'S LEARNING IS SURE TO BE CONSIDERED BY THE CONSUMER PRODUCT SAFETY COMMISSION WHICH WILL DECIDE LATER THIS YEAR WHETHER TO EXPLORE ADOPTING A FURNITURE FLAMMABILITY RULE THE BOTTOM LINE IS THE WORK NIST IS DOING MIGHT AT SOME POINT FORM THE BASIS FOR THE TEST PROCEDURES IN A FLAMMABILITY STANDARD SAYS ALLEN BRAUNINGER A CONSUMER COMMISSION ATTORNEY SEE RELATED LETTER LETTERS TO THE EDITOR FURNITURE FIRES WSJ SEPT 16 1993 9308180079 YY93 MM09 9309160132 930729 LETTERS TO THE EDITOR WE'LL NEVER SEE A DINOSAUR IN A ZOO I ENJOYED PATRICK COX'S JULY 9 EDITORIAL PAGE ARTICLE JURASSIC PARK' A LUDDITE MONSTER I AM WRITING TO POINT OUT SOME SCIENTIFIC INADEQUACIES OF THE NOVEL AND TO UNDERLINE SOME OF THE EFFORTS MOLECULAR BIOLOGISTS HAVE MADE TO ENSURE THAT THEIR RESEARCH IS APPLIED IN A SAFE BENEFICIAL AND ETHICAL WAY DR CRICHTON'S WRITING IN JURASSIC PARK IS WELLRESEARCHED AND FILLED WITH ELECTRIFYING DRAMA ONLY A PART OF WHICH IS CAPTURED IN THE FILM YET THE SCIENCE IS CERTAINLY PRESENTED WITH LIBERAL USE OF LITERARY LICENSE WE CAN IN FACT THEORETICALLY RECOVER DNA FROM DINOSAURS WE CAN AMPLIFY IT USING PCR POLYMERASE CHAIN REACTION TECHNOLOGY AND WE KNOW THAT AN ORGANISM'S CHARACTERISTICS ARE ENCODED IN ITS DNA HOWEVER THE THREE PIECES DON'T NECESSARILY FIT TOGETHER AS NEATLY AS JURASSIC PARK MAKES IT SEEM RECENT RESEARCH SUGGESTS THAT RECREATING AN ORGANISM FROM ITS DNA SEQUENCE IS EVEN MORE IMPROBABLE THAN WAS ONCE THOUGHT AND MAY BE IMPOSSIBLE AS WE LEARN MORE ABOUT ORGANISM DEVELOPMENT THE ONETOONE RELATIONSHIP BETWEEN THE SEQUENCE OF DNA NUCLEOTIDES AND THE NATURE OF THE ORGANISM WE GET SEEMS LESS AND LESS CLEAR WE HAVE KNOWN FOR SOME TIME THAT MANY ASPECTS OF BEHAVIOR PHYSIOLOGY AND ANATOMY ARE DEPENDENT UPON ENVIRONMENT AS WELL AS GENETICS AT A MORE FUNDAMENTAL LEVEL WE KNOW THAT IT IS NOT ONLY THE GENES THAT ARE PRESENT IN AN ORGANISM BUT THE MANNER IN WHICH THOSE GENES ARE REGULATED THAT COUNTS THE REGULATION OF A GENE DEPENDS NOT ONLY ON ITS SEQUENCE OF NUCLEOTIDES BUT ON THE INFLUENCE OF VARIOUS PROTEINS AND OTHER PARAPHERNALIA INTERACTING WITH THE DNA COLLECTIVELY THESE BITS OF DATA OUTSIDE OF THE DNA SEQUENCE ITSELF ARE REFERRED TO AS EPIGENETIC INFORMATION THE INITIAL INTERACTIONS BETWEEN DNA AND PROTEIN OCCUR IN THE SEMILIQUID MATRIX CYTOPLASM OF THE EGG IN WHICH A LARGE NUMBER OF PROTEINS AND OTHER MATERIALS ARE DISTRIBUTED IN A VERY SPECIFIC PATTERN THAT IS CHARACTERISTIC FOR EACH TYPE SPECIES OF ORGANISM IT IS THESE INTERACTIONS THAT DEFINE THE SHAPE OF THE ORGANISM THE TRADITIONAL VIEW OF DNA AS THE BLUEPRINT FOR AN ORGANISM IS NOT FULLY ACCURATE IF WE DRAW AN ANALOGY TO THE CONSTRUCTION OF A BUILDING THE DNA SEQUENCE PROVIDES US WITH EXPLICIT INSTRUCTIONS FOR MAKING THE CONCRETE BRICKS MARBLE STUDS AND PIPES BUT THE EGG CYTOPLASM IS IMPORTANT IN TELLING US HOW TO PUT THESE ALL TOGETHER TO FORM A FOUNDATION AND A COHERENT STRUCTURE WHILE DNA MAY WITHSTAND THE EONS THE PROTEINS IN A DINOSAUR EGG WERE ABOUT AS STABLE AS THE WHITE OF YOUR BREAKFAST EGG EVEN IF THE PROTEINS AND OTHER EPIGENETIC INFORMATION WERE PRESENT IN THE MATERIAL RECOVERED FROM AMBER THEY WOULD NOT BE AMPLIFIED BY PCR WHICH IS A PROCESS THAT ACTS ON THE DNA SEQUENCE ONLY WHAT WE HAVE THEN IS A SITUATION IN WHICH THE DNA REMNANTS OF THE DINOSAURS CAN BE RECOVERED AND ALLOW US TO RECREATE LETTER BY LETTER A RICH LIBRARY OF INFORMATION ABOUT THOSE EXTINCT CREATURES BUT THE RULES OF GRAMMAR WE NEED TO READ THAT LIBRARY IN A MEANINGFUL WAY ARE I AM AFRAID LOST FOR ALL TIME AS A SCIENTIST AND A CITIZEN I AM DEEPLY AWARE OF THE POTENTIAL PROBLEMS WROUGHT BY ALL TECHNOLOGY BY CURING DISEASE MODERN MEDICINE HAS TAMPERED WITH THE COURSE OF EVOLUTION MIGHT THE HUMAN SPECIES ONE DAY SUFFER BECAUSE WE HAVE ERADICATED SMALLPOX WE DON'T KNOW BUT WE DO KNOW THE CONSEQUENCES OF LETTING THAT DISEASE RUN ITS COURSE WILL REPLANTING A FLOWER THAT IS ON THE VERGE OF EXTINCTION DESTROY OUR ENTIRE ECOSYSTEM WE CANNOT PREDICT WILL THE ERADICATION OF GENETIC DISEASE LEAVE OUR SPECIES HELPLESS IN THE FACE OF A CHANGING EARTH AGAIN WE DON'T KNOW BUT WE CANNOT EXPLAIN TO SOMEONE WITH CYSTIC FIBROSIS OR HUNTINGTON'S DISEASE THAT THE LONGTERM SUCCESS OF HOMO SAPIENS DEPENDS UPON THEIR CONTINUED SUFFERING THE BEST WE CAN DO IS PROCEED WITH CAUTION THINK OUT THE IMPLICATIONS OF SCIENTIFIC PROGRESS AND CONSIDER THE FACTS AS WE KNOW THEM TODAY THE HUMAN GENOME PROJECT WHICH SOME OBSERVERS CONSIDER TO BE THE PINNACLE OF BIOTECHNOLOGY HAS AS AN INTEGRAL PART A DIVISION FOR THE STUDY OF THE ETHICAL LEGAL AND SOCIAL IMPLICATIONS ELSI OF THE RESEARCH THIS IS ONE OF THE FIRST CASES IN WHICH A STUDY OF THE ETHICS AND IMPLICATIONS HAS BEEN BUILT INTO THE FUNDING STRUCTURE FOR SCIENTIFIC RESEARCH AS A RESULT THE NATIONAL INSTITUTES OF HEALTH THE COLOSSUS OF SCIENTIFIC FUNDING IN AMERICA HAS TAKEN AN INTEREST IN ETHICS AND SOCIETY AND HAS FUNDED PUBLIC EDUCATION AS WELL AS BASIC AND APPLIED MEDICAL RESEARCH TODAY NIHFUNDED SCIENTISTS ETHICISTS AND EDUCATORS WALK INTO HIGH SCHOOL AND ELEMENTARY SCHOOL CLASSROOMS TELL THE NEXT GENERATION OF LEADERS HOW SCIENCE WORKS AND WHAT WE HAVE FOUND OUT ABOUT GENETICS MOLECULAR BIOLOGY AND BIOTECHNOLOGY THESE SCIENTISTS ETHICISTS AND EDUCATORS DISCUSS WITH STUDENTS AT LENGTH THE IMPLICATIONS OF THAT KNOWLEDGE INCULCATING IN THE STUDENTS NOT ONLY AN UNDERSTANDING OF THE SPECIFICS BUT A MODEL FOR HOW TO THINK ABOUT ETHICAL AND SOCIETAL ISSUES THE EFFECT IN ALL ASPECTS OF A STUDENT'S LIFE MAY BE JUST WHAT FOR CENTURIES ACADEMICS HAVE BEEN TRYING TO ACHIEVE UNDER THE GUISE OF A LIBERAL EDUCATION MR COX'S ATTEMPT TO DEBUNK THE POLITICAL CORRECTNESS OF JURASSIC PARK WAS A GREAT EXAMPLE OF WHY CONSERVATIVES WILL NEVER CONTROL HOLLYWOOD HIS DIRE WARNING THAT A MOVIE ABOUT SCIENCE RUN AMOK WILL LEAD TO RESTRICTED SCIENTIFIC DEVELOPMENT IS ALARMIST ARE WE TO ASSUME THAT FRANKENSTEIN MOVIES RETARDED THE ADVENT OF TRANSPLANT SURGERY I DON'T THINK SO WHAT THE AUTHOR SEES IS AN ORCHESTRATED HOLLYWOOD EFFORT TO CHANGE NATIONAL POLICY A BOOK FRAGMENT HERE A SPEECH THERE GOD FORBID A MEETING IN SOMEONE'S MALIBU HOME AND BINGO A CONSPIRACY IS BORN SUCH CONSPIRACY THEORIES ARE JUSTIFIED AND PERPETUATED BY THE NOTION THAT PEOPLE GATHERED AROUND A COMMON BELIEF WE OPPOSE ARE BAD THE RESULTING RATIONALIZATION OF THE OTHER GUY'S MOTIVES RESULTS IN THE KIND OF STRANGE BEHAVIOR YOU WOULDN'T WANT YOUR MOM TO SCRUTINIZE HAVING PERSONALLY LIVED THROUGH ONE NATIONAL SCANDAL I CAN TELL YOU THAT LOOKING UNDER THE OTHER GUY'S BED IS ONLY SLIGHTLY LESS IDIOTIC THAN LOOKING UNDER YOUR OWN YES THE MAVENS OF HOLLYWOOD ARE KEY INFLUENCERS IN OUR SOCIETY BUT THEY ARE NOT POLICY MAKERS FOR PROOF JUST LOOK AT HISTORY FOR YEARS SIGNIFICANT NUMBERS OF THE COMMUNITY HAVE BEEN ULTRALIBERAL IN THEIR WORK AND PUBLIC PRONOUNCEMENTS BUT THEY CERTAINLY HAVE NOT SUCCEEDED AT INSTALLING A SOCIALIST GOVERNMENT THE CONSERVATIVE COMMUNITY HAS BEEN HARANGUING US FOR YEARS OVER HOLLYWOOD'S PERVERSION OF OUR YOUTH POLITICAL INSTITUTIONS AND NATIONAL POLICIES IN MR COX'S CASE SCIENCE POLICY WITHOUT EVER LOOKING AT THE TRUE ROLE THAT FILM ARTISTS PLAY RATHER THAN PAINT THEM AS CONSPIRATORS LET'S TAKE THEM AT THEIR WORD AND DEED WHAT THEY CULTIVATE AND DISPLAY IS A VIGILANT PASSION FOR THE HUMAN SIDE OF SOCIETY THEY EXPRESS OUR ANGER AND JOY EXPOSE OUR FEARS AND SHORTCOMINGS AND IGNITE OUR PASSIONS THEY TELL US STORIES ABOUT OURSELVES AND TAKE US THROUGH ENDLESS SELFEXAMINATION PERPETUAL SELFEXAMINATION IS EXACTLY WHAT THE BUSINESS COMMUNITY HAS FINALLY RECOGNIZED AS THE ESSENCE OF GROWTH HOLLYWOOD IS ONE OF AMERICA'S GREATEST AND MOST ENDURING INSTITUTIONS ITS WORK TODAY IS AS VALID AS ITS WORK IN 1938 WE CAN DISAGREE WITH ITS POLITICS BUT ITS ROLE AS A SOCIAL CONSCIENCE FOR AMERICA SHOULD BE GUARDED WITH GREAT CARE AND DEFENDED BY THINKING PEOPLE OF ALL POLITICAL STRIPE PERHAPS IT WAS THE BRAINDEADENING STEREOPHONIC NOISE FROM THE SOUNDTRACK OF JURASSIC PARK THAT MADE ME MISS THE ANTIBIOTECH AND ANTITECHNOLOGY MESSAGE DESCRIBED BY MR COX UNLIKE WHAT SEEMS TO BE 995 OF THE INTELLIGENT CITIZENS OF THIS COUNTRY I FOUND THE MOVIE INANE AND BORING ALTHOUGH ADMIRING THE TECHNOLOGY THAT WENT INTO MAKING THE CREATURES ALIVE ALL THE ROARING AND THUNDERING ABOUT OF THE DINOSAURS TWO NINTENDOPLAYING JUVENILES SOLVING THE COMPUTER OUTAGE AND FINALLY AND MERCIFULLY ENDING THE CARNAGE TWO DINOSAURS FIGHTING EACH OTHER AND THE HUMANS CLIMBING ALL OVER DINOSAUR SKELETONS AND THE ROOF STRUCTURE OF SKELETON HALL IT WAS JUST TOO MUCH I FELT LIKE GIGGLING AND NOT FROM FRIGHT MY BIG REGRET THE OWNER OF THE PARK WASN'T CHEWED UP BY A LIPSMACKING TREX MAYBE IN AN INEVITABLE SEQUEL THE PTERODACTYLS WILL PICK HIM UP AND DROP HIM IN AN ACTIVE VOLCANO SEE RELATED LETTER LETTERS TO THE EDITOR JURASSIC DEMOCRAT ONCE EXTINCT ALIVE WSJ SEPT 16 1993 9307290132 YY93 MM09 9309160106 930709 JURASSIC PARK' A LUDDITE MONSTER BY PATRICK COX THE ONLY PEOPLE MORE THRILLED BY THE FILM JURASSIC PARK THAN ITS AUDIENCES ARE THE EXECUTIVES AND ACCOUNTANTS AT UNIVERSAL PICTURES THE MOVIE IS IN FACT A REMARKABLE ACHIEVEMENT THANKS IN LARGE PART TO THE TECHNOLOGY DEVELOPED BY GEORGE LUCAS'S INDUSTRIAL LIGHT & MAGIC IN BETWEEN DINOSAUR SIGHTINGS HOWEVER AUDIENCE MEMBERS MAY NOTICE A NOT SO SUBTLE MESSAGE ABOUT SCIENCE IN GENERAL AND BIOTECHNOLOGY IN PARTICULAR THAT MESSAGE REFLECTS HOLLYWOOD'S FASHIONABLE EMBRACE OF ANTISCIENCE ENVIRONMENTALISM AND IT SEEMS TO BE HAVING AN EFFECT A COLLEAGUE'S DAUGHTER AN 11YEAROLD WHO HAS NEVER HAD TO DEAL WITH NATURE'S LESS APPEALING MANIFESTATIONS LIKE DIABETES OR BIRTH DEFECTS TOLD HER FATHER UPON RETURNING FROM THE MOVIE JURASSIC PARK'S' MESSAGE IS IMPORTANT WE SHOULDN'T FOOL AROUND WITH NATURE IT IS NO SECRET THAT JURASSIC PARK HAS AN AGENDA BEYOND SIMPLE ENTERTAINMENT BOTH DIRECTOR STEVEN SPIELBERG AND AUTHOR MICHAEL CRICHTON ARE PROMOTING THE FILM AS MORE THAN A DINOSAUR MOVIE MR CRICHTON IS EVEN MORE FORTHRIGHT IN THE INTRODUCTION TO THE BOOK THERE HE COMPLAINS THAT BIOTECH CATERS TO FRIVOLOUS MARKET FORCES HE IS WORRIED BECAUSE SUPPOSEDLY THE WORK IS UNCONTROLLED NO ONE SUPERVISES IT NO FEDERAL LAWS REGULATE IT HE ADDS BUT MOST DISTURBING IS THE FACT THAT NO WATCHDOGS ARE FOUND AMONG SCIENTISTS THEMSELVES IN REALITY BIOTECH FROM ITS INCEPTION HAS BEEN ONE OF THE MOST HEAVILY REGULATED INDUSTRIES IN AMERICA THE FIRST REGULATORY EFFORTS WERE INITIATED BY THE BIOTECH INDUSTRY ITSELF MAKING HISTORY IN 1974 IT VOLUNTARILY HALTED CERTAIN TYPES OF GENESPLICING EXPERIMENTS INTERNATIONALLY FOR TWO YEARS UNTIL PROTOCOLS FOR EXPERIMENTATION COULD BE ESTABLISHED TODAY NOTHING GOES ON THAT THE FOOD AND DRUG ADMINISTRATION THE ENVIRONMENTAL PROTECTION AGENCY OR THE AGRICULTURE DEPARTMENT HASN'T HEARD ABOUT OR APPROVED REALITY HOWEVER HAS NOT BEEN ALLOWED TO INTERFERE WITH A GOOD STORY THE PLOT OF THE MOVIE CENTERS ON AN ATTEMPT BY AN ENTERPRISING BUSINESSMAN TO CREATE A THEME PARK CONTAINING REAL DINOSAURS CLONED FROM PREHISTORIC DNA QUICKLY SAFEGUARDS FAIL THE DINOSAURS ESCAPE AND DISASTERS MOUNT THE MOVIE ENDS WITH THREATS OF FUTURE DISASTERS FOLLOWING MR CRICHTON'S BOOK RATHER CLOSELY THE MOVIE USES SCIENTISTS TO PROMOTE THE ANTITECHNOLOGICAL MESSAGE EARLY IN THE MOVIE WE JOIN TWO LEADING PALEONTOLOGISTS ON A FIELD DIG IN THE AMERICAN WEST THE FIRST SETS THE ANTITECHNOLOGY TONE WITH A DISPARAGING ATTITUDE TOWARD THE NEWFANGLED COMPUTER TECHNOLOGY THE OTHER AGREES THAT SHE HATES COMPUTERS AS WELL ODDLY THEIR YOUNGER COLLEAGUE'S PREDICTION THAT TECHNOLOGY WILL SOON MAKE IT POSSIBLE TO STUDY FOSSILS UNDERGROUND WITHOUT DISTURBING A SITE SEEMS ONLY TO INCREASE THEIR ANTIPATHY TOWARD APPLIED SCIENCE THE MESSAGE HERE IS STICK TO THE OLD WAY EVEN WHEN SCIENCE HAS A BETTER IDEA THE PALEONTOLOGISTS' FEAR ABOUT THE COHABITATION OF HUMANS AND DINOSAURS IS ECLIPSED BY THE ANTAGONISM OF A THIRD SCIENTIST CHARACTER A MATHEMATICIAN WHO REDUCES CHAOS THEORY TO THE VIEW THAT COMPLEX TECHNOLOGICAL SYSTEMS WILL ALWAYS FAIL BECAUSE OF UNFORESEEN EVENTS AND SHOULD THEREFORE NOT BE USED THIS IS NOT TRUE CHAOS THEORY NOR DOES IT REFLECT THE REALLIFE ATTITUDE OF MR SPIELBERG WHO COMPLETED A COMPLEX MOVIE EVEN THOUGH HE AND HIS CREW WERE HIT BY A HURRICANE WHILE FILMING IN HAWAII FURTHER REINFORCING THE VIEW THAT SCIENCE AND TECHNOLOGY ARE INHERENTLY INVIDIOUS IS THE ULTIMATE VILLAIN IN THE MOVIE A COMPUTER PROGRAMMER WHO COMMITS THE ACT THAT FREES THE BEASTS HE IS AN OBNOXIOUS SOCIALLY INEPT CHARACTER PORTRAYED AS THE ULTIMATE COMPUTER NERD ONE WONDERS WHAT THE PROGRAMMERS AT INDUSTRIAL LIGHT & MAGIC THINK OF THIS BURLESQUE THE ESCAPE OF THE DINOSAURS HOWEVER IS DEPICTED IN THE FILM AS THE FULFILLMENT OF CHAOS THEORY PREDICTIONS THAT BIOTECH SHOULD NOT BE USED TO BRING PREHISTORIC SPECIES BACK TO LIFE IN FACT THE DANGEROUS DINOSAURS IN JURASSIC PARK ARE RESTRAINED SOLELY BY ELECTRIFIED FENCES EVEN ZOOS EMPLOY PASSIVE PHYSICAL BARRIERS RAILROAD FENCES MOATS TO RESTRAIN FAR LESS DANGEROUS ANIMALS FERRETS ARE TREATED WITH MORE RESPECT BY ZOO KEEPERS THAN THE DINOSAURS ARE IN THE FICTIONAL THEME PARK THE ULTIMATE DANGER PRESENTED IN BOTH THE BOOK AND THE MOVIE IS FREELY BREEDING DINOSAURS EXPLORING THE THEME OF THE MOVIE IN AN INTERVIEW FOR THE E CHANNEL ON CABLE TELEVISION MR CRICHTON SAID I THINK THIS IS A REALLY SERIOUS QUESTION OF WHO WOULD COME OUT ON TOP BUT IT ISN'T A SERIOUS QUESTION OUR PREHISTORIC ANCESTORS EQUIPPED WITH ONLY SPEARS AND OTHER PRIMITIVE WEAPONS CLEARED THE POSTDINOSAUR MEGAFAUNA OF NORTH AMERICA THERE ARE CREATURES I AM AFRAID OF THOUGH I'M THINKING OF NEW VIRUSES CONSTANTLY AND NATURALLY EVOLVING WE CAN COUNT ON NEW DISEASES TO REPLACE THE OLD ONES THAT WE HAVE LEARNED TO CURE IF WE ARE EVER TO CONQUER THEM WE WILL NEED A HEALTHY BIOTECH INDUSTRY YET MANY OPPOSE THIS INDUSTRY GREEN ACTIVISTS IN GERMANY AND OTHER EUROPEAN COUNTRIES HAVE SHUT DOWN BIOTECH OPERATIONS AND MANY ENVIRONMENTAL GROUPS HERE STRENUOUSLY OPPOSE GENETIC ENGINEERING OF ANY SORT THE FIRST CHAPTER OF VICE PRESIDENT AL GORE'S ENVIRONMENTALIST BOOK IS DEVOTED TO THE BIOTECH THREAT WILL THE TREMENDOUS SUCCESS OF JURASSIC PARK AID THE ENEMIES OF BIOTECH I HAVE NO IDEA BUT I AM CONCERNED THAT THE ENTERTAINMENT COMMUNITY'S CUSTOMARY PORTRAYAL OF SCIENTISTS AND TECHNOLOGISTS AS BUMBLING IDIOTS OR EVIL VILLAINS WILL CREATE AN ATMOSPHERE THAT LEADS TO FURTHER RESTRICTIONS ON SCIENTIFIC FREEDOMS CONDEMNING TECHNOLOGICAL PROGRESS TO THE PACE OF THE CAUTIOUS BUREAUCRAT MR COX IS DIRECTOR OF THE ARTS RESEARCH CENTER OF THE COMPETITIVE ENTERPRISE INSTITUTE SEE RELATED LETTERS LETTERS TO THE EDITOR WE'LL NEVER SEE A DINOSAUR IN A ZOO WSJ JULY 29 1993 9307090186 YY93 MM07 SEE RELATED LETTER LETTERS TO THE EDITOR JURASSIC DEMOCRAT ONCE EXTINCT ALIVE WSJ SEPT 16 1993 9307290118 YY93 MM09 9309150196 930915 BROWNFORMAN BUYBACK PLAN LOUISVILLE KY BROWNFORMAN CORP SAID IT WILL BUY ABOUT 31000 SHARES OF ITS CLASS A COMMON STOCK ON THE OPEN MARKET OR THROUGH PRIVATE PURCHASE FOR USE IN ITS RESTRICTED STOCK PLAN TO REWARD SENIOR MANAGERS BROWN FORMAN A CONSUMER PRODUCTS CONCERN CURRENTLY HAS 10574181 CLASS A COMMON SHARES OUTSTANDING AND 16980555 CLASS B COMMON SHARES OUTSTANDING 9309150195 930915 TRITON ENERGY TO POST A GAIN DALLAS TRITON ENERGY CORP SAID IT WILL RECORD A FISCAL FIRSTQUARTER GAIN OF 41 MILLION ASSOCIATED WITH COMPLETING ITS SALE OF CERTAIN INTERESTS IN TRITON CANADA RESOURCES LTD IN THE FIRST QUARTER ENDED AUG 31 1992 TRITON EARNED 866000 OR THREE CENTS A SHARE ON 762 MILLION IN REVENUE 9309150194 930915 BILL TO REGULATE TREASURY MARKET PASSES HOUSE PANEL BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE HOUSE ENERGY AND COMMERCE COMMITTEE APPROVED A COMPROMISE BILL TO OVERHAUL REGULATION OF THE GOVERNMENT SECURITIES MARKET THE LEGISLATION WHICH IS SUPPORTED BY THE TREASURY AND THE SECURITIES AND EXCHANGE COMMISSION IS EXPECTED TO WIN FINAL CONGRESSIONAL APPROVAL LATER THIS YEAR WITHOUT MAJOR CHANGE IT CLEARED THE HOUSE PANEL BY VOICE VOTE WITH BROAD BIPARTISAN SUPPORT THE BILL WOULD AUTHORIZE THE TREASURY TO REQUIRE MARKET PARTICIPANTS INCLUDING HEDGE FUNDS TO REPORT LARGE POSITIONS THIS PROVISION IS DESIGNED TO HELP REGULATORS DETECT AND IDENTIFY THE CAUSES OF ANY FUTURE SQUEEZES AFFECTING THE TREASURY MARKET IN ADDITION IT WOULD REQUIRE DEALERS TO FURNISH DETAILED TRANSACTION RECORDS INCLUDING RECORDS ON THE TIMING OF TRADES TO THE SEC UPON REQUEST AND IT WOULD EMPOWER THE AGENCY TO REQUIRE THAT SUCH RECORDS BE MADE AVAILABLE IN ELECTRONIC FORM THE LEGISLATION WOULD SUBJECT GOVERNMENTSECURITIES SALES PRACTICES TO FEDERAL REGULATION FOR THE FIRST TIME AND WOULD REQUIRE AN ANNUAL SEC REPORT ON THE ADEQUACY OF BOND PRICE DISSEMINATION KNOWN IN TRADE JARGON AS TRANSPARENCY THE REPORTING MANDATE REPLACES A PROPOSAL TO AUTHORIZE THE AGENCY TO COMPEL BROADER PRICE DISSEMINATION THE CHANGE REPRESENTS A KEY VICTORY FOR THE GOVERNMENTBOND INDUSTRY WHICH ARGUES THAT PRIVATE EFFORTS TO IMPROVE MARKET TRANSPARENCY HAVE BEEN QUITE SUCCESSFUL THE TREASURY DROPPED ITS PRIOR INSISTENCE THAT IT HAVE VETO AUTHORITY OVER SALES PRACTICE RULES WHICH ARE TO BE ISSUED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND BANK REGULATORS THE BILL WOULD PERMANENTLY EXTEND THE TREASURY'S RULEMAKING AUTHORITY OVER OTHER ASPECTS OF THE GOVERNMENTSECURITIES MARKET THE MEASURE GROWS OUT OF THE SALOMON BROTHERS INC TREASURY BOND SCANDAL WHICH BEGAN TO UNFOLD IN THE SPRING OF 1991 AFTER A SEVERE SQUEEZE IN TREASURY NOTES REP EDWARD MARKEY D MASS WHO PLAYED A CENTRAL ROLE IN FASHIONING THE COMPROMISE NOTED THAT FEDERAL INVESTIGATIONS CONTINUE INTO POSSIBLE ANTITRUST VIOLATIONS NONCOMPETITIVE BIDDING AND OTHER ABUSES IN THE TREASURY MARKET THE BILL COULD GO TO THE HOUSE FLOOR FOR ACTION LATER THIS MONTH THE SENATE PASSED A NARROWER BILL EARLIER THIS YEAR BUT KEY SENATORS ARE EXPECTED TO BE AMENABLE TO ACCEPTING BROADER HOUSE PROVISIONS NOW THAT THEY ARE BACKED BY THE TREASURY DEPARTMENT 9309150193 930915 UNIQUEST SEES 4THPERIOD CHARGE JACKSONVILLE FLA UNIQUEST INC SAID IT WILL TAKE A CHARGE IN ITS FISCAL 1993 FOURTH QUARTER TO COVER ACCELERATION OF AMORTIZATION AND RESTRUCTURING COSTS THE SOFTWARE PROVIDER SAID IT IS STILL DETERMINING THE AMOUNT OF THE CHARGE FOR THE PERIOD ENDING MAY 31 UNIQUEST SAID IT WILL REPORT THIS FIGURE NEXT WEEK WHEN IT RELEASES ITS FULLYEAR FISCAL 1993 RESULTS IN FISCAL 1992 UNIQUEST REPORTED A LOSS OF 662000 OR FOUR CENTS A SHARE ON 108 MILLION IN SALES 9309150192 930915 ALLSTAR ANALYSTS 1993 SURVEY COMPUTER PERIPHERALS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL ANALYST ROBERT P ANASTASI COVERS THE PERSONAL COMPUTER INDUSTRY BY AVOIDING PC STOCKS LAST YEAR A LARGE GAIN IN DELL COMPUTER HELPED PROPEL THE 42YEAROLD TECHNOLOGY ANALYST AT ROBINSONHUMPHREY IN ATLANTA TO THE TOP SPOT FOR STOCKPICKING IN THE PERIPHERALS AND PCS GROUP BUT NOW HE WON'T GO NEAR A STRAIGHT PC STOCK THIS IS A VERY LARGE INDUSTRY THAT IS UNWINDING MR ANASTASI SAYS THERE'S NO LAW THAT SAYS TO INVEST IN THE PC INDUSTRY YOU HAVE TO BUY A PC MANUFACTURER ONE SEGMENT HE DOES LIKE IS COMPONENT ASSEMBLERS WHICH HAVE SEEN THEIR BUSINESS BOOM AS PC MAKERS LOOK FOR WAYS TO TRIM COSTS AN ENGINEER BY TRAINING MR ANASTASI IS PARTICULARLY FOND OF SCI SYSTEMS THE OTHER STOCK ON WHICH HE LOGGED A BIG GAIN LAST YEAR BASED IN HUNTSVILLE ALA SCI ASSEMBLES PARTS FOR DELL AND IBM AMONG OTHERS MR ANASTASI ALSO CLOSELY TRACKS COMPANIES THAT RESELL AND DISTRIBUTE PCS ANOTHER CRITICAL AREA AS BIG COMPUTER MANUFACTURERS SHARPLY CUT BACK ON THEIR ARMIES OF SALESPEOPLE IN THAT NICHE HE RECOMMENDS TECH DATA AND MERISEL EUGENE G GLAZER OF DEAN WITTER REYNOLDS TOOK SECOND PLACE IN 1992 WITH A HUGE GAIN IN DELL AND A SMALL RISE FROM ADROIT TIMING ON APPLE COMPUTER AT THE MOMENT HE HAS NARY A BUY IN THE GROUP MR GLAZER SAYS COMPUTER UNIT GROWTH HAS AVERAGED BETWEEN 30 AND 35 IN THE PAST YEAR COMPARED WITH A HISTORIC INDUSTRY NORM OF ABOUT 10 TO 15 IT'S CLEAR HE SAYS THAT THINGS HAVE GOT TO COOL OFF BESIDES EVEN THOUGH COMPANIES HAVE BEEN SELLING LOTS OF PCS THEY'VE COME CLOSE TO GIVING THEM AWAY COMPUTER MAKERS' PROFIT MARGINS HAVE BEEN HAMMERED BY PRICE CUTTING OF AS MUCH AS 40 ON SOME MODELS MR GLAZER SINGLES OUT COMPAQ COMPUTER OF HOUSTON FOR DOING THE BEST JOB OF MANAGING THROUGH THE CHANGES BUT HE SAYS THAT EVEN COMPAQ HAS LITTLE UPSIDE CONSIDERING THE SHAKEOUT THAT'S STILL TO COME THERE ARE NONE OF THESE COMPANIES THAT I'M COMFORTABLE WITH NOW HE SAYS BUT THE NEXT SIX MONTHS COULD BE THE TIME ANDREW NEFF OF BEAR STEARNS SNARED THIRD PLACE WITH MAJOR GAINS IN CHIPMAKER INTEL AND DISKDRIVE MAKER MAXTOR MAXTOR WAS RECENTLY ON BEAR STEARNS' RESTRICTED LIST MEANING THAT MR NEFF WASN'T AT LIBERTY TO DISCUSS IT BUT HE STILL HAS A BUY ON INTEL SOME PEOPLE WORRY THAT INTEL KEEPS GETTING NEW COMPETITION MOST RECENTLY FROM THE POWER PC CHIP WHICH APPLE IBM AND MOTOROLA ARE OFFERING AS AN ALTERNATIVE TO INTEL'S PENTIUM CHIP BUT MR NEFF IS PUTTING HIS CHIPS ON INTEL WITH ITS AGGRESSIVE PRODUCT DEVELOPMENT AND HUGE INSTALLED BASE MR NEFF ALSO FAVORS TWO OTHER SEMICONDUCTOR MAKERS ADAPTEC AND VLSI TECHNOLOGIES AND DISK DRIVE MAKER SEAGATE HE'S NOT RECOMMENDING ANY PC MAKERS AT ALL COMPONENTS VENDORS ARE THE BEST WAY TO PLAY THE PC INDUSTRY HE SAYS THE COMPONENTS COMPANIES WILL BENEFIT FROM UNIT VOLUME BUT HAVE SOME PROTECTION FROM PRICING PRESSURES UNLIKE THE PC MAKERS THEMSELVES 9309150191 930915 INTERNATIONAL CHINA CRANKS UP PROPAGANDA MACHINE AND RELEASES DISSIDENT IN OLYMPICS BID BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING TRAFFIC IS BACKED UP IN TIANANMEN SQUARE A LOUDSPEAKER ON A TRUCK ADMONISHES HONKING MOTORISTS TO SHOW A LITTLE COURTESY ADDING BACK BEIJING'S BID FOR THE OLYMPICS UNDER A HUGE PORTRAIT OF MAO TSETUNG FLUTTERING BANNERS PROCLAIM BEIJING 2000 A SIGN ON A NEARBY CONSTRUCTION SITE PROMISES EPOCHMAKING GAMES IN A LEGENDARY CITY EVEN THE CHINESE TOURISTS CLOGGING THE SQUARE KNOW THEIR LINES HOSTING THE OLYMPICS IS THE COMMON ASPIRATION OF THE CHINESE PEOPLE SAYS YANG WANJUN A 25YEAROLD SIGHTSEER THE GOVERNMENT THAT PRODUCED THE GREAT LEAP FORWARD AND THE CULTURAL REVOLUTION MAY HAVE CHANGED IN RECENT DECADES BUT IT HASN'T FORGOTTEN HOW TO MOUNT A NATIONAL PROPAGANDA CAMPAIGN AND TO CLEAN UP ITS AUTHORITARIAN IMAGE ABROAD BEIJING YESTERDAY RELEASED LONGTIME POLITICAL PRISONER WEI JINGSHENG WHOSE CRIME WAS PUTTING UP POSTERS CRITICIZING CHINESE LEADER DENG XIAOPING HUMAN RIGHTS CRITICS OF CHINA WERE QUICK TO NOTE THAT THE RELEASE OF MR WEI SIX MONTHS BEFORE HIS 15YEAR SENTENCE WAS DUE TO END CAME JUST NINE DAYS BEFORE THE INTERNATIONAL OLYMPIC COMMITTEE MEETS IN MONACO TO SELECT A HOST CITY FOR THE 2000 GAMES TO TURN THIS BRAVE DISSIDENT INTO A BARGAINING CHIP TO SPRUCE UP CHINA'S IMAGE BEFORE THE IOC VOTE IS UTTERLY DEPLORABLE SAID ROBIN MUNRO HONG KONG DIRECTOR FOR ASIA WATCH A HUMAN RIGHTS GROUP SOME ANALYSTS SAY THE CHINESE GOVERNMENT'S MASSIVE PUBLIC RELATIONS CAMPAIGN TO GAIN THE OLYMPICS PRIZE COULD BACKFIRE IF BEIJING DOESN'T SUCCEED IN MONACO IT MAY HAVE A TOUGH TIME EXPLAINING TO ITS WELLINDOCTRINATED POPULATION WHAT WENT WRONG SOME DIPLOMATS FEAR A BACKLASH AGAINST THE US ESPECIALLY AS MANY IN THE US CONGRESS OPENLY OPPOSE BEIJING'S BID ON THE GROUND THAT CHINA DOESN'T RESPECT HUMAN RIGHTS IF BEIJING DOES WIN THE OLYMPICS DOMESTIC CRITICS SAY THE COST OF STAGING THE GAMES WILL DETRACT FROM THE PRESSING INFRASTRUCTURE DEMANDS OF CHINA'S FASTGROWING ECONOMY BEIJING IS NONETHELESS A LEADING CONTENDER AT THE SEPT 23 IOC MEETING IN MONACO AS IS SYDNEY AUSTRALIA OTHERS IN THE RUNNING INCLUDE BERLIN ISTANBUL MANCHESTER ENGLAND AND MILAN NONE HAS MOUNTED A PROPAGANDA CAMPAIGN ON A SCALE EVEN REMOTELY CLOSE TO CHINA'S DIPLOMATS SAY WHEN THE IOC VISITED BEIJING IN MARCH OFFICIALS BANNED SOME PRIVATE CARS AND ORDERED A CUTBACK IN COAL BURNING TO SHOW THIS SPRAWLING CITY OF 11 MILLION AT ITS BEST COUNTRYWIDE IN RURAL VILLAGES AS WELL AS CITIES BANNERS AND SIGNS DECLARE SUPPORT FOR THE BID BEIJING SEES THE GAMES AS ITS CHANCE TO SHOWCASE THE TRANSFORMATION THAT HAS SWEPT THE COUNTRY'S ECONOMY ALONG AT AN AVERAGE ANNUAL GROWTH RATE OF 9 IN THE 15 YEARS SINCE CHINA LAUNCHED ITS ECONOMIC REFORMS OFFICIALS ALSO MAY HOPE TO ECLIPSE MEMORIES OF THE GOVERNMENT'S BRUTAL 1989 SUPPRESSION OF PRODEMOCRACY DEMONSTRATIONS IN BEIJING THE GAMES WILL ENABLE CHINA TO KNOW MORE ABOUT THE WORLD AND MOST COUNTRIES TO KNOW MORE ABOUT CHINA SAYS WU ZHONGYUAN SPOKESMAN OF THE BEIJING OLYMPIC BID COMMITTEE OFFICIALS SAY THE 2000 OLYMPICS COULD GIVE A LIFT TO CHINA SIMILAR TO THE BOOST GIVEN TO POSTWORLD WAR II JAPAN BY THE 1964 OLYMPICS JUST AS JAPAN BUILT UP ATHLETIC FACILITIES PARKS AND TRANSPORT TO ACCOMMODATE INTERNATIONAL VISITORS SO CHINA WOULD INVEST 6 BILLION TO 7 BILLION IN INFRASTRUCTURE AND AN OLYMPIC VILLAGE MOREOVER SOME CHINESE WHO FAVOR BEIJING'S BID NOTE THAT IT WOULD GIVE CHINA AN INCENTIVE TO BECOME MORE OPEN ANOTHER BEIJING 2000 CAMPAIGN SLOGAN IS A MORE OPEN CHINA AWAITS YOU BUT SOME OF THE CRITICS OF CHINA'S HUMANRIGHTS POLICIES NOTABLY THE US CONGRESS WORRY THAT GIVING BEIJING THE OLYMPICS WOULD REWARD A NATION THAT STILL JAILS AND EXILES DISSIDENTS THE US HOUSE OF REPRESENTATIVES THIS YEAR PASSED A NONBINDING RESOLUTION OPPOSING BEIJING'S BID AND 60 SENATORS SIGNED A LETTER URGING THE OLYMPIC COMMITTEE NOT TO CHOOSE CHINA THE MEDDLING HAS ANGERED CHINA DESPITE ITS OWN HISTORY OF USING SPORTS AS A POLITICAL LEVER CHINESE OFFICIALS SAY SPORTS AND POLITICS DON'T MIX IT IS UNNECESSARY FOR THE US CONGRESS TO INTERFERE WITH THIS MATTER SAYS QIAN QICHEN CHINA'S VICE PREMIER AND FOREIGN MINISTER HAVING BENT OVER BACKWARD IN ITS OLYMPIC BID SOME DIPLOMATS SAY THE GOVERNMENT MIGHT LOSE CREDIBILITY IF ITS BID IS REJECTED RATHER THAN TAKE THE HEAT ITSELF THESE CHINA ANALYSTS SAY CHINA MAY BLAME THE US A POSSIBILITY MR WU OF THE OLYMPIC BID COMMITTEE UNDERSCORES IF WE FAIL I DON'T THINK CHINESE PEOPLE WILL BLAME OUR GOVERNMENT SAYS MR WU WE HAVE DONE WHAT WE CAN THEY MAY BLAME THE AMERICAN CONGRESS BUT HE SAYS THE POSSIBILITY OF FAILURE IS NOT ON OUR AGENDA 9309150190 930915 INTERNATIONAL EASTERN GERMANY'S GDP RISES WIESBADEN GERMANY EASTERN GERMANY'S GROSS DOMESTIC PRODUCT ROSE A REAL 62 IN THE FIRST HALF FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID WESTERN GERMANY'S GDP SHRANK 26 IN THE PERIOD THE PANGERMAN GDP FELL 2 THE FIGURES ARE PRELIMINARY AND AREN'T SEASONALLY ADJUSTED GERMAN ECONOMIC MINISTER GUENTER REXRODT PREDICTED THAT EASTERN GERMANY'S GDP WILL LIKELY EXPAND BY 5 IN ALL OF 1993 HIS LATEST PREDICTION IS MORE PESSIMISTIC THAN A FORECAST HE MADE IN MIDAUGUST WHEN HE PREDICTED A GROWTH RATE FOR 1993 OF BETWEEN 5 AND 6 9309150189 930915 EUROPE'S CROSSLISTING SYSTEM FOR BIG STOCKS NEARS COMPLETION BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EUROPEAN STOCK EXCHANGES ARE NEARING COMPLETION OF A CROSSLISTING SYSTEM FOR BLUECHIP STOCKS THAT WILL LET SAY A SPANISH INVESTOR TRADE BIG ITALIAN OR FRENCH STOCKS RIGHT IN MADRID EDMOND ISRAEL PRESIDENT OF THE FEDERATION OF EUROPEAN STOCK EXCHANGES SAID PRELIMINARY TESTS THIS MONTH WERE SUCCESSFUL AND THE SYSTEM COULD BE ADOPTED EARLY NEXT YEAR UNDER THE FIRST PHASE OF THE EUROLIST PROJECT COMPANIES LISTED ON FIVE EXCHANGES PLUS THEIR HOME COUNTRY'S EXCHANGE WOULD DISSEMINATE INFORMATION SIMULTANEOUSLY ON THOSE BOURSES PARTICIPATING IN THIS PHASE WOULD BE SUCH BIG MULTINATIONALS AS ROYAL DUTCH/SHELL GLAXO UNILEVER SIEMENS IMPERIAL CHEMICAL INDUSTRIES AND BSN GROUPE STAGE TWO REQUIRES THE EUROPEAN PARLIAMENT TO AMEND A EUROPEAN COMMUNITY DIRECTIVE SO THAT A COMPANY LISTED ON ONE EC EXCHANGE COULD BE LISTED ON ALL OTHERS WITHOUT HAVING TO MAKE A SEPARATE APPLICATION OR PUBLISH A PROSPECTUS IN THE OFFICIAL LANGUAGE OF THAT EXCHANGE PASSAGE OF THE AMENDMENT IS EXPECTED BY YEAR END EUROLIST CONTAINS COMPANIES FROM BRITAIN GERMANY FRANCE SPAIN ITALY THE NETHERLANDS BELGIUM AND DENMARK EUROLIST IS A SCALEDDOWN VERSION OF AN ATTEMPT IN THE LATE 1980S TO CREATE A SINGLE TRADING AND INFORMATION SYSTEM FOR EUROPE'S LARGEST STOCKS THOUGH MORE MODEST PROPONENTS SAY IT IS A MAJOR STEP FORWARD IT CREATES IN EFFECT A EUROPEAN PASSPORT FOR SHARES SAID JEFFREY KNIGHT SPECIAL ADVISER TO THE FEDERATION IT'S THE BUILDING BLOCK OF THE SECURITIES MARKET OF THE FUTURE OF COURSE SEAQ INTERNATIONAL LIKES TO THINK OF ITSELF AS THE FUTURE THIS IS THE AUTOMATED TRADING SYSTEM OF THE LONDON STOCK EXCHANGE WHICH CLAIMS TO BE THE DEALING CENTER FOR 90 OF ALL CROSSBORDER STOCK TRADING IN EUROPE OTHER EXCHANGES DISPUTE THIS FIGURE BUT SEAQ HAS THE LION'S SHARE PARTICULARLY OF TRADES BY INSTITUTIONAL INVESTORS ALLOWING EUROPEAN STOCKS TO BE AUTOMATICALLY LISTED EVERYWHERE MIGHT CUT IN ON SEAQ WHICH HAS BENEFITED IN THE LAST DECADE FROM NEW LISTINGS BUT LONDON EXCHANGE CHAIRMAN SIR ANDREW HUGH SMITH DENIES THAT EUROLIST WOULD TAKE AWAY INSTITUTIONAL INVESTORS' BUSINESS SPEAKING AT A CONFERENCE SPONSORED BY DOW JONES TELERATE SIR ANDREW SAID IT SHOULD BE POSSIBLE FOR THERE TO BE A EUROPEAN WHOLESALE MARKET LIMITED TO PROFESSIONAL AND INSTITUTIONAL INVESTORS SUCH A MARKET WOULD INEVITABLY BE BASED IN LONDON TO THE EXTENT THAT SUCH A MARKET HAS A GEOGRAPHICAL LOCATION RUDIGER VON ROSEN A DIRECTOR OF DEUTSCHE BOERSE AG THE GERMAN STOCK EXCHANGE SAID GEOGRAPHIC BOUNDARIES ARE BLURRING DEUTSCHE BOERSE RECENTLY SET UP IBIS ITS COMPUTERIZED SCREENTRADING SYSTEM AT A SUBSIDIARY OF A GERMAN BANK IN LONDON THE BANK'S TRADING ACTIVITY WILL BE REGULATED UNDER GERMAN LAW MR VON ROSEN SAID FURTHER MARKETING OF IBIS WOULD DEPEND ON CLARIFICATION OF WHICH COUNTRY WOULD REGULATE FOR EXAMPLE A US BANK TRADING ON THE SYSTEM FROM ITS PARIS OFFICE HE SAID ONE PURPOSE OF THE EUROLIST PROJECT IS TO HALT THE CENTRALIZATION OF EUROPEAN STOCK TRADING AND SHIFT IT BACK TO HOME MARKETS WHERE EXPERTISE ON INDIVIDUAL STOCKS IS OFTEN GREATER A SINGLE STOCKEXCHANGE CENTER FOR EUROPE IS SUPERFLUOUS IF THE MEMBERS OF ONE STOCK EXCHANGE ARE AUTOMATICALLY GIVEN ACCESS TO ANOTHER MR VON ROSEN SAID THE ADVANTAGES ARE OBVIOUS IT WOULD NOT BE NECESSARY TO DEVELOP A NEW SUPRANATIONAL SYSTEM AND MARKET PARTICIPANTS WOULD HAVE NO NEED FOR ADDITIONAL ADMISSION TO STOCKEXCHANGE TRADING EUROLIST SHOULD BE PARTICULARLY BENEFICIAL TO MEDIUMSIZED COMPANIES THAT CAN'T AFFORD GETTING LISTED ON NUMEROUS BOURSES THE SYSTEM WOULD ALLOW FOR EXAMPLE AN INVESTOR IN MADRID TO BUY ITALIAN SHARES THROUGH HIS BROKER ON THE MADRID BOURSE NOW IF THE STOCK ISN'T LISTED ON THE MADRID BOURSE THE BROKER USUALLY HAS TO DEAL THROUGH ANOTHER REGISTERED IN ITALY EUROLIST COMPANIES ARE SENDING ANNOUNCEMENTS SIMULTANEOUSLY IN THEIR LANGUAGE AND ENGLISH TO THE OFFICIAL INFORMATION SERVICES OF THEIR HOME EXCHANGE AND PARTICIPATING BOURSES TO QUALIFY A COMPANY MUST HAVE A MINIMUM OF 1 BILLION EUROPEAN CURRENCY UNITS 118 BILLION IN MARKET CAPITALIZATION AND ANNUAL TRADING VOLUME OF AT LEAST 250 MILLION ECUS 9309150188 930915 PEPPERAND SALT BECOMING MORE PARENTTHETICAL THIS IS THE COMPUTER AGE NOW THE AVERAGE MAN IS NO LONGER THE AVERAGE MAN HE'S A DATABASE 9309150187 930915 TECHNOLOGY BMC SOFTWARE REPURCHASE PLAN SUGAR LAND TEXAS BMC SOFTWARE INC SAID IT INTENDS TO BUY BACK UP TO ONE MILLION SHARES OF ITS COMMON STOCK NO LIMIT WAS PLACED ON THE DURATION OF THE REPURCHASE PROGRAM THE COMPANY SAID BMC A MAKER OF SOFTWARE FOR MAINFRAME COMPUTERS HAS 263 MILLION SHARES OUTSTANDING IN OVERTHECOUNTER TRADING YESTERDAY ITS SHARES CLOSED AT 5375 UP 1625 9309150186 930915 WHO'S NEWS GTECH CORP GTECH CORP WEST GREENWICH RI LEONARD J LEBLANC 52 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS VIDEO GAME MAKER HE IS THE FORMER EXECUTIVE VICE PRESIDENT OF FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER OF CADENCE DESIGN SYSTEMS INC GTECH CORP DESIGNS OPERATES AND SERVICES COMPUTERIZED NETWORKS FOR LOTTERIES IN WEDNESDAY'S WHO'S NEWS COLUMN THE COMPANY WAS INCORRECTLY DESCRIBED AS A VIDEO GAME MAKER 9309150184 930915 WHO'S NEWS CONTINENTAL BANK CORP CONTINENTAL BANK CORP CHICAGO THIS BANKING AND FINANCIAL SERVICES COMPANY NAMED THREE OFFICIALS EXECUTIVE VICE PRESIDENT MARCUS W ACHESON IV 49 YEARS OLD HEAD OF THE CHICAGO METROPOLITAN BANKING DEPARTMENT DAVID W HALSTEAD 42 WHO MANAGES SEVERAL CAPITALRAISING ADVISORY SERVICES FOR THE PARENT COMPANY AND WILMA J SMELCER 44 MANAGER OF CONTINENTAL'S PRIVATE BANK UNIT 9309150183 930915 BROADCASTING TV DIALS AND VIEWERS' HEADS WILL SPIN AS NETWORKS LAUNCH NEW FALL LINEUPS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CALL IT THE SEASON OF CONFUSION THE BIG THREE NETWORKS AND FOX ARE LAUNCHING A RECORD 38 NEW PRIMETIME SHOWS THIS FALL WITH 11 NEW SHOWS ON ABC ALONE ONE SHOW HAS CHANGED NETWORKS ANOTHER 15 SERIES HAVE CHANGED TIME PERIODS THREE HAVE CHANGED THEIR NAMES SINCE THE FALL SCHEDULES WERE UNVEILED LAST SPRING AND ONE NEW DRAMA ABC'S NYPD BLUE HAS ALREADY BEEN YANKED BY STATIONS COVERING ABOUT 10 OF THE COUNTRY BECAUSE OF ITS ADULT CONTENT BEFORE IT HAS EVEN AIRED IT'S ENOUGH TO MAKE A NETWORK VIEWER GIVE UP AND TURN TO CABLE AND LOOMING OVER ALL OF THIS IS THE POSSIBILITY THAT SOME LOCAL NETWORK AFFILIATES MAY BE DROPPED FROM THEIR CABLE SYSTEMS AND LOSE THOUSANDS OF VIEWERS ON OCT 6 UNLESS THE STATIONS CAN REACH AGREEMENT ON HOW MUCH CABLE COMPANIES SHOULD PAY THEM FOR USE OF THEIR PROGRAMMING THE NEW SEASON WHICH STARTS OFFICIALLY SEPT 20 IS PARTICULARLY IMPORTANT IN LIGHT OF THE NETWORKS' DISASTER OF A YEAR AGO WHEN JUST ONE NEW SHOW CBS'S MIDYEAR REPLACEMENT DR QUINN MEDICINE WOMAN ACHIEVED ANYTHING NEAR HIT STATUS A MERE HANDFUL OF SHOWS THE NETWORKS INTRODUCED LAST FALL EVEN SURVIVED TO MAKE IT BACK FOR A SECOND YEAR LAST SEASON THE THREE MAJOR NETWORKS CBS INC GENERAL ELECTRIC CO'S NBC AND ABC A UNIT OF CAPITAL CITIES/ABC INC DROPPED TO A COLLECTIVE 60 OF THE NIGHTLY AUDIENCE A RECORD LOW THE DECLINE WAS PARTICULARLY DISAPPOINTING BECAUSE ONLY A YEAR EARLIER THE NETWORKS HAD SEEMINGLY REVERSED A 15YEAR EROSION OF THEIR AUDIENCE THE NETWORKS DO NEED A COUPLE MORE HIT PROGRAMS TO GET TALKED ABOUT THIS SEASON OR WE WILL LOSE SOME OF THE WATERCOOLER KIND OF DISCUSSION THAT KEEPS NETWORK RATINGS HIGH CONCEDES CBS SENIOR VICE PRESIDENT DAVID POLTRACK THE NETWORKS HAVE MADE SO MANY CHANGES THIS YEAR BECAUSE THERE WAS A GREATER AWARENESS OF WHAT THEY HAVE TO DO TO STABILIZE TO SURVIVE SAYS BETSY FRANK SENIOR VICE PRESIDENT AT AD AGENCY SAATCHI & SAATCHI NAMELY THE NETWORKS LEARNED FROM LAST SEASON THAT THEY HAD TO DUMP EFFORTS TO APPEAL TO NARROWER SEGMENTS SUCH AS YOUNG ADULTS AND AIM FOR THE BROADEST AUDIENCE POSSIBLE SO THIS SEASON THERE ARE NO MORE CLONES OF FOX'S TEEN CRUSH BEVERLY HILLS 90210 DOTTING THE LINEUPS NOR ARE THERE DRAMAS INTENDED TO WOO URBAN YUPPIES INSTEAD THE EMPHASIS IS ON TRIEDANDTRUE FAMILY COMEDIES AT ALL THE NETWORKS MORE THAN A DOZEN SHOWS IN ALL ALBEIT NONTRADITIONAL AND MULTIGENERATIONAL FAMILIES WITH LOTS OF CUTE KIDS IN SOME WAYS NETWORK PROGRAMMERS MAY HAVE HAD LITTLE OTHER CHOICE THE TELEVISION BUSINESS HAS BEEN UNDER INTENSE PRESSURE FROM CRITICS IN WASHINGTON OVER VIOLENCE IN PROGRAMMING AND THE NETWORKS POINT TO THE RISE IN FAMILY COMEDIES AS EVIDENCE THAT THEY ARE MOVING AWAY FROM THE SHOOT'EMUP GENRE THAT HAS BEEN DRAWING FIRE ALL SUMMER CONGRESS HAD THREATENED TO FORCE THE NETWORKS TO CUT BACK IF THEY DIDN'T DO IT ON THEIR OWN NOW SOME MOVIES OF THE WEEK ARE EXPECTED TO CARRY A PARENTAL WARNING BUT DECREASING VIOLENCE COULD DRIVE VIEWERS TO THE COMPETITION ON CABLE THE DREADED POSSIBILITY THAT CAUSED THE NETWORKS TO ALLOW STRONGER AND STRONGER CONTENT TO BEGIN WITH THE PERFORMANCE OF NYPD BLUE WHICH HAS DRAWN CRITICISM FOR ITS SEXUAL CONTENT AND STRONG LANGUAGE AS MUCH AS FOR VIOLENCE WILL BE CLOSELY WATCHED THE COP SHOW PREMIERES NEXT TUESDAY IN ITS REGULAR 10 PM TIME SLOT AND IT HAS GENERATED REAMS OF PUBLICITY ABOUT THE 30 STATIONS THAT HAVE BALKED AT CARRYING IT ITS PREMIERE THEREFORE SEEMS SURE TO DRAW A HUGE NUMBER OF VIEWERS IN THE PLACES WHERE IT CAN BE SEEN SORTING THROUGH THE NEW SHOWS WILL BE A CHORE FOR VIEWERS AND THE SHEER NUMBER OF ROOKIE ENTRIES MAY WORK AGAINST THE NETWORKS NO NETWORK HAS EVER SUCCESSFULLY INTRODUCED MORE THAN FIVE HOURS OF NEW SHOWS AT A TIME SAYS MR POLTRACK OF CBS IN RECENT YEARS THE NORM FOR SUCCESS HAS BEEN 2 1/2 HOURS YET THIS SEASON FIRSTPLACE CBS WITH THE LEAST AMOUNT OF NEW PROGRAMMING IS INTRODUCING 6 1/2 HOURS OF NEW SHOWS SECONDPLACE ABC AND THIRDPLACE NBC HAVE EIGHT NEW HOURS EACH AND FOX A UNIT OF NEWS CORP HAS SIX NEW HOURS REPLACING 40 OF ITS 15HOUR WEEKLY SCHEDULE IT'S TOUGH OUT THERE SAYS ABC ENTERTAINMENT PRESIDENT TED HARBERT BUT I STILL THINK WE CAN DEPEND ON VIEWERS KNOWING THE NEW SHOWS ARE ON AND BEING WILLING TO SAMPLE THEM AT LEAST ONCE TO AVOID AIRING TOO MANY NEWCOMERS AT ONCE THE NETWORKS HAVE STAGGERED THE START DATES TO BEGIN IN EARLY SUMMER AND EXTEND INTO EARLY NOVEMBER NEWSMAGAZINES SUCH AS FOX'S FRONT PAGE AND CBS'S REVAMPED EYE TO EYE WITH CONNIE CHUNG WERE LAUNCHED FIRST FOLLOWED BY A HALFDOZEN SERIES THAT PREMIERED IN THE WANING DAYS OF AUGUST AND BEFORE LABOR DAY THE EARLY STARTS GAVE THE NETWORKS THE ADDED ADVANTAGE OF AIRING ORIGINAL SUMMER FARE INSTEAD OF REPEATS IN THE CASE OF CBS'S THE TROUBLE WITH LARRY HOWEVER THAT ADVANTAGE COULDN'T OVERCOME BAD REVIEWS WITH SEVERAL WEAK OUTINGS SO FAR THE SHOW COULD CONCEIVABLY BE CANCELED BEFORE THE SEASON EVEN OFFICIALLY BEGINS SOME OF THE SCHEDULING TECHNIQUES AIMED AT INDUCING SAMPLING COULD FURTHER CONFUSE VIEWERS NBC USED A DOUBLEPUMP FOR ITS NEW JOHN LARROQUETTE SHOW A TECHNIQUE THAT IS NOW COMMONPLACE FOR MOST NEW SERIES THE NETWORK AIRED BOTH THE PILOT AND THE FIRST EPISODE OF THE SHOW TWICE IN TWO WEEKS IN VARIOUS TIME PERIODS INCLUDING THE TUESDAY 9 PM SLOT THE SHOW WILL OCCUPY A LARGE NUMBER OF VIEWERS TRIED THE SHOW BUT IT IS UNCLEAR WHETHER THEY WILL BE BACK WHEN THE PROGRAM'S MAIN COMPETITION ABC'S TOPRATED ROSEANNE STARTS NEW EPISODES ONE OF THE MOST CLOSELY WATCHED BATTLES OF THE SEASON WILL BE ON SUNDAY NIGHTS WHEN TELEVISION VIEWING IS HIGHEST AT 8 O'CLOCK CBS'S MURDER SHE WROTE HAS QUIETLY DOMINATED FOR MANY YEARS BUT THIS SEASON ABC HAS PUT ITS SASSY SUPERMAN REMAKE LOIS & CLARK IN THE TIME SLOT NBC HAS FILLED THE SUNDAY TIME PERIOD WITH SEAQUEST DSV A FUTURISTIC SUBMARINE SERIES FROM STEVEN SPIELBERG WITH A PRODUCTION BUDGET ESTIMATED AT MORE THAN 40 MILLION FOR 22 EPISODES SEAQUEST IS THE MOST EXPENSIVE SERIES EVER TELEVISION CRITICS LOVE LOIS & CLARK AND RECOMMENDED SINKING SEAQUEST IN THE TWO SHOWS' FIRST OUTING LAST SUNDAY HOWEVER VIEWERS SNUBBED THE CRITICS AND SEAQUEST TROUNCED LOIS & CLARK IN THE RATINGS 9309150182 930915 SPORT SUPPLY CALLS WARRANTS THE COMPANY SAID THE WARRANT CALL WOULD EXPIRE OCT 20 THE WARRANTS WERE TO EXPIRE FEB 28 1997 BUT INCLUDED PROVISIONS FOR THE CALL 9309150181 930915 MAX & ERMA'S GETS CREDIT LINE COLUMBUS OHIO MAX & ERMA'S RESTAURANTS INC SAID PROVIDENT BANCORP'S PROVIDENT BANK UNIT AGREED TO EXTEND TO IT A 12 MILLION REVOLVING CREDIT LINE PROCEEDS WILL BE USED TO MEET THE RESTAURANT CHAIN'S LONGTERM GROWTH PLANS THE COMPANY SAID IN ADDITION TO THREE RESTAURANTS SCHEDULED TO OPEN DURING THE FIRST QUARTER OF 1994 THE COMPANY PLANS TO OPEN TWO OR THREE LATER THIS YEAR CURRENTLY MAX & ERMA'S HAS 21 RESTAURANTS AND ONE FRANCHISE RESTAURANT ALL IN THE MIDWEST 9309150180 930915 BUSINESS BRIEF FEDERAL EXPRESS POSTS 1STPERIOD PROFIT COMPARED WITH A LOSS A YEAR EARLIER MEMPHIS TENN FEDERAL EXPRESS CORP CITING VOLUME GROWTH IN BOTH DOMESTIC AND INTERNATIONAL MARKETS REPORTED A PROFIT FOR ITS FISCAL FIRST QUARTER COMPARED WITH A YEAREARLIER LOSS EARNINGS FOR THE PERIOD ENDED AUG 31 TOTALED 329 MILLION OR 60 CENTS A SHARE COMPARED WITH A NET LOSS OF 458 MILLION OR 84 CENTS A SHARE A YEAR EARLIER THE YEARAGO FIGURES INCLUDE A ONETIME ACCOUNTING CHARGE OF 559 MILLION OR 103 A SHARE EXCLUDING THE CHARGE PROFIT AT THE EXPRESSDELIVERY COMPANY MORE THAN TRIPLED IN THE QUARTER REVENUE ROSE 8 TO 202 BILLION FROM 186 BILLION THE RESULTS WHICH EXCEEDED MANY ANALYSTS' EXPECTATIONS REFLECTED VOLUME GROWTH OF 11 IN THE US MARKET MORE IMPORTANT THE COMPANY SAID IT WAS ABLE TO SLOW PRICE EROSION THE AVERAGE REVENUE PER DOMESTIC PACKAGE FELL JUST 11 CENTS TO 1360 FROM 1371 A YEAR EARLIER IN THE FISCAL 1993 FIRST QUARTER THE AVERAGE REVENUE PER DOMESTIC PACKAGE HAD FALLEN 10 OR 151 PER PACKAGE FROM THE FISCAL 1992 FIRST QUARTER OVERSEAS FEDERAL EXPRESS CONTINUED TO TRIM ITS OPERATING LOSSES WHICH TOTALED 332 MILLION IN THE LATEST QUARTER COMPARED WITH 574 MILLION A YEAR EARLIER THE AVERAGE REVENUE PER INTERNATIONAL PACKAGE ROSE TO 3819 FROM 3678 IN THE YEAREARLIER QUARTER INTERNATIONAL REVENUE ROSE TO 5353 MILLION FROM 523 MILLION THEY LOOK AS THOUGH THEY'RE TURNING THE CORNER INTERNATIONALLY SAID KEVIN C MURPHY AT MORGAN STANLEY & CO THE COMPANY EXPECTS ITS INTERNATIONAL OPERATIONS TO BREAK EVEN SOMETIME DURING FISCAL 1995 SAID ALAN B GRAF JR CHIEF FINANCIAL OFFICER FEDERAL EXPRESS PUBLISHED ITS EARNINGS AFTER THE MARKETS CLOSED YESTERDAY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FEDERAL EXPRESS SHARES CLOSED AT 55375 A SHARE DOWN 50 CENTS 9309150179 930915 LEISURE & ARTS OPERA TIPPETT ALLEGORY IN BELATED PREMIERE BY HEIDI WALESON NEW YORK THE NEW YORK CITY OPERA WHICH TURNS 50 THIS YEAR BUILT ITS REPUTATION ON BEING A PLACE WHERE ONE COULD HEAR THE EXCITING YOUNG SINGERS OF TOMORROW AND SAMPLE NEW AND NEGLECTED REPERTORY CHRISTOPHER KEENE HAS BEEN WORKING HARD ON THE REPERTORY ANGLE SINCE HE BECAME GENERAL DIRECTOR IN 1989 AND WE'VE HAD SOME INTERESTING SCHOENBERG'S MOSES UND ARON AND NOT SO INTERESTING BUSONI'S DOKTOR FAUSTUS REVELATIONS STILL MR KEENE IS ANYTHING BUT TRENDY THE PREMIERES ON OFFER THIS FALL COME FROM COMPOSERS FIRMLY IN THE VETERAN CLASS NEW OPERAS BY THREE VENERABLE AMERICANS EZRA LADERMAN LUKAS FOSS AND HUGO WEISGALL ARE DUE IN OCTOBER LAST WEEK CITY OPERA UNVEILED THE FIRST NEW YORK PRODUCTION OF THE MIDSUMMER MARRIAGE WRITTEN BETWEEN 1946 AND 1952 BY SIR MICHAEL TIPPETT WHO IS NOW 88 MR KEENE IS AMAZED THAT NO TIPPETT OPERAS HAVE BEEN PRESENTED IN NEW YORK BEFORE NOW BUT IF THEY ARE ALL LIKE THE MIDSUMMER MARRIAGE I CAN'T REALLY SHARE HIS SURPRISE THE COMPOSER WROTE HIS OWN LIBRETTO WHICH ACCORDING TO ALL THE COMMENTARY SURROUNDING THIS PRODUCTION HAS A GREAT DEAL TO DO WITH THE PSYCHOLOGICAL THEORIES OF CARL JUNG ITS THEMES OF SELFDISCOVERY ALSO FIT IN NICELY WITH MORE RECENT TRENDS IN POPULAR PSYCHOLOGY THOUGH TIPPETT NOWHERE SPEAKS OF THE INNER CHILD HE DOES CREATE A HANDFUL OF IMPERSONAL CHARACTERS IN SEARCH OF TRUTH A VILLAIN WITH BASE MOTIVATIONS AN UNWIELDY CHORUS AND A FEW ARCHETYPAL SEERS FROM SOME OTHER WORLD IT IS A HIGHLY PERSONAL VISION ONE WHICH MUST HAVE MEANT A GREAT DEAL TO MR TIPPETT BUT DOES NOT CONVEY A TREMENDOUS AMOUNT TO AN AUDIENCE NOT ALREADY PERFECTLY IN TUNE WITH HIM THE TEXT IS AWKWARD OBSCURE AND LONGWINDED ITS DRAMATURGY PRACTICALLY NONEXISTENT ON THE SURFACE THERE IS A DRAMATIC PARALLEL TO THE MAGIC FLUTE TWO PAIRS OF LOVERS AND THEIR QUESTS AND TRIALS BUT UNLIKE MOZART AND HIS LIBRETTIST DA PONTE TIPPETT CONVEYS NEITHER THEIR MYSTERY NOR THEIR HUMANITY MARK AND JENIFER ARE SUPPOSED TO BE MARRIED ON MIDSUMMER DAY AT A MYSTERIOUS PLACE CHOSEN BY MARK JENIFER SHOWS UP AND ANNOUNCES IT ISN'T LOVE I WANT BUT TRUTH AND SHE CLIMBS INTO SOME BLUE HEAVEN MARK DESPONDENT STARTS HIS OWN QUEST BY DESCENDING INTO A CAVE JENIFER'S FATHER A BUSINESSMAN NAMED KING FISHER RECALLING THE FISHER KING OF THE GRAIL LEGEND ARRIVES JUST IN TIME TO SEE MARK VANISH DOWN HIS RABBIT HOLE HE'S AGAINST THE MARRIAGE AND HE TRIES TO BRIBE THE CHORUS TO PURSUE MARK ASSUMING THAT JENIFER IS WITH HIM HE IS THWARTED AND JENIFER AND MARK REAPPEAR BOTH TRANSFIGURED THE TWO RANT VAGUELY ABOUT THEIR VISIONS JENIFER ON THE SERENITY OF HEAVEN MARK ABOUT THE EXCITEMENT OF THE OTHER PLACE WHICH INVOLVES STALLIONS STAMPING AND YOUNG MEN DANCING TO THE SPRINGING SAP JENIFER AND MARK ARE STILL NOT ON THE SAME WAVELENGTH HOWEVER SO THEY SWITCH PLACES MARK CLIMBS TO HEAVEN AND JENIFER DESCENDS TO THE CAVE KING FISHER BURSTS OUT NOW IS THIS NONSENSE AT ITS NOON AND YOU CAN'T HELP BUT SYMPATHIZE EVEN IF HE IS SUPPOSED TO BE THE VILLAIN THAT'S JUST THE FIRST ACT A LIBRETTO THIS CONVOLUTED NEEDS A LIGHT TOUCH AND A MUSICAL VISION THAT WILL CARRY IT TO ANOTHER REALM THERE ARE MANY BEAUTIFUL MOMENTS IN THE MIDSUMMER MARRIAGE A RENAISSANCEY TRUMPET AND DRUM FANFARE FOR THE OPENING DANCE JENIFER'S ECSTATIC ARIA OF ASCENSION AND A COLORATURA DUET WITH A TRUMPET ON HER RETURN THE THREE RITUAL DANCES AND AN ANTIPHONAL MADRIGAL IN ACT II A RAMBLING WAGNERIAN MONOLOGUE FOR THE SEERESS SOSOSTRIS IN ACT III PLUS MANY WONDERFUL ORCHESTRAL EFFECTS BUT THE MUSIC FAILS TO GIVE ANY OVERALL SHAPE TO THE NARRATIVE AND RATHER THAN ILLUMINATING IT OFTEN OBSCURES STILL FURTHER THE MEANING OF THE ALREADY OBSCURE TEXT PERHAPS A LESS STARK PRODUCTION MIGHT HAVE ALLOWED THE MIDSUMMER MARRIAGE TO KEEP SOME OF ITS MYSTERIES AND CONCEALED SOME OF ITS FLAWS BUT FRANCESCA ZAMBELLO DECIDED TO TRANSPORT THE OPERA FROM A STRANGE ENGLISH WOOD TO THE AMERICAN WEST AND TO PHYSICALLY OPEN UP A WORK THAT SHRANK UNDER SUCH CLOSE SCRUTINY IT DIDN'T HELP THAT CITY OPERA PRODUCED THE SHOW ON THE CHEAP KEVIN RUPNIK'S RAKED WOOD STAGE HUNG ABOUT WITH THREE GATHERED WHITE CURTAINS STENCILED WITH BUTTES MADE FOR A FLAT TEXTURELESS PLAYING AREA WITH NO PLACE TO HIDE AND HIS EARTHTONED J CREWESQUE COSTUMES LOOKED DRAB HEATHER CARSON'S LIGHTING WAS BLATANT THE LARGE CHORUS WAS OFTEN IN MOTION CRAMMING THE SPACE AND SEMAPHORING THEIR WORDS SUCH LITERALNESS ALSO MADE THE SEXUAL SUBTEXT OF THE OPERA EXPLICIT THE THREE RITUAL DANCES THAT MAKE UP MOST OF ACT II WERE NOTSOALLEGORICAL COUPLINGS HANDSOMELY CHOREOGRAPHED BY SUSAN MARSHALL AND FEATURING A PAIR OF GREATLOOKING LEAD DANCERS BERNARD MCCLAIN AND EILEEN THOMAS THE TEXT IS FULL OF SEX FOR EXAMPLE THE CLAIRVOYANT SOSOSTRIS LETS KING FISHER SPY ON JENIFER'S SEXUAL INITIATION WHICH UPSETS HIM SO MUCH THAT HE HAS A HEART ATTACK AND ULTIMATELY DIES ALLOWING THE LOVERS NOW JOINED AND PRESUMABLY WITHOUT HIS HANGUPS TO RULE TOGETHER AND THE CHORUS TO SING IN PRAISE OF CARNAL LOVE MS ZAMBELLO USED A VIDEO SCREEN FOR THE SEERESS'S CRYSTAL BALL AND WHILE THE IMAGES WERE A RESPECTABLE SET OF FLICKERING AMOROUS PAINTINGS NOT HARDCORE COPULATION PERHAPS MR TIPPETT MEANT FOR THESE FERTILITY RITES TO BE LEFT STILL MORE TO THE IMAGINATION VOCALLY THE PRIZE WENT TO THE ELEGANT PASSIONATE SINGING OF JAN OPALACH KING FISHER IT WOULD HAVE BEEN FUN TO HEAR JOAN SUTHERLAND THE ORIGINAL JENIFER IN 1955 NINA WARREN WAS LOUD BUT SHE HAD ACIDY TOP NOTES AND A WOBBLE JACALYN BOWERKREITZER WAS A GUTSY SOSOSTRIS AND THE HONEYVOICED ELIZABETH FUTRAL BROUGHT SOME MUCHNEEDED IF RATHER BROAD HUMOR TO THE PROCEEDINGS AS BELLA KING FISHER'S SECRETARY DENNIS MCNEIL AND BRAD CRESSWELL DID FINE AS MARK AND JACK THE MALE HALVES OF THE TWO COUPLES THE ORCHESTRA UNDER CHRISTOPHER KEENE SOUNDED SCRAPPY MUCH OF THE TIME AND THERE WERE FREQUENT BALANCE PROBLEMS BETWEEN THE ORCHESTRA AND THE STAGE MS WALESON IS A MUSIC WRITER IN NEW YORK 9309150178 930915 INTERNATIONAL DUTCH PRODUCER PRICES FOR JULY THE HAGUE PRODUCER PRICES IN THE NETHERLANDS EDGED 01 HIGHER IN JULY FROM JUNE BUT WERE DOWN 15 FROM A YEAR EARLIER THE CENTRAL BUREAU FOR STATISTICS SAID THE JULY RISE ALBEIT VERY MODEST REVERSED A DECLINE OF 02 IN JUNE FROM MAY PRICES IN JUNE DROPPED A BROADER 22 FROM THE YEAREARLIER MONTH PRESSURED BY SLIGHTLY HIGHER PRICES FOR EXPORTED GOODS THE JULY PRODUCER PRICE INDEX STOOD AT 907 UP FROM 906 IN JUNE THE INDEX WAS AT 921 IN JULY 1992 PRODUCER PRICES FOR EXPORTED GOODS WERE UP 02 FROM A MONTH EARLIER BUT WERE DOWN 21 FROM A YEAR EARLIER 9309150177 930915 TECHNOLOGY & HEALTH COMPAQ IS MAKING HANDHELD MACHINE WITH NEW CHIP SET BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON COMPAQ COMPUTER CORP TAKING AIM AT APPLE COMPUTER INC'S NEWTON MACHINE SAID IT IS DEVELOPING A HANDHELD COMPUTER BASED ON A NEW CHIP TECHNOLOGY FROM INTEL CORP AND VLSI TECHNOLOGY INC THE COMPUTER MAKER SAID ITS SOCALLED MOBILE COMPANION DEVICE DUE OUT NEXT YEAR WILL RUN ON A NEW SET OF COMPUTER CHIPS JOINTLY DEVELOPED BY INTEL BASED IN SANTA CLARA CALIF AND VLSI BASED IN TEMPE ARIZ THE MOVE COMES AMID A FLURRY OF RECENT INTEREST IN HANDHELD MACHINES DESPITE PREDICTIONS BY ANALYSTS THAT THE DEVICES WON'T GENERATE SIGNIFICANT SALES UNTIL THE END OF THE DECADE THEY NOTE FOR EXAMPLE THAT SALES OF CURRENTLY AVAILABLE HANDHELD MACHINES INCLUDING NEWTON AND CASIO COMPUTER'S ZOOMER COULD BE LIMITED BECAUSE THEY AREN'T COMPATIBLE WITH THE HUGE INSTALLED BASE OF DESKTOP PCS COMPAQ PLEDGED THAT ITS NEW DEVICE RUNNING THE INTELVLSI CHIP SET AND A MICROSOFT CORP OPERATING SYSTEM WILL SOLVE THAT PROBLEM ENABLING CUSTOMERS TO MOVE DATA FROM THEIR HANDHELD DEVICE TO THEIR OFFICE PC WHILE ANALYSTS SAID IT'S TOO EARLY TO GAUGE WHETHER COMPAQ WILL BE ABLE TO CRACK THE HANDHELD MARKET ITS FIRST MACHINE AFTER ALL STILL IS MONTHS AWAY THEY SAID THE ARRIVAL OF COMPAQ AND ITS HEAVYWEIGHT PARTNERS COULD FREEZE BUYERS CONSIDERING BUYING OTHER COMPANIES' PRODUCTS IT'S A VALIDATION OF THE MARKET SAID STEVEN L ESKENAZI AN ANALYST AT ALEX BROWN & SONS INC IN SAN FRANCISCO IT SHOWS THAT ANOTHER BIG COMPANY THINKS HANDHELD COMPUTERS WILL BE A BIG BUSINESS AN APPLE SPOKESWOMAN SAID THE COMPANY DOESN'T COMMENT ON VENDORS' PLANS SHE DID HOWEVER SAY THAT APPLE BASED IN CUPERTINO CALIF IS DEVELOPING A TRANSLATION DEVICE THAT WHEN ATTACHED TO THE NEWTON WILL ENABLE THE MACHINES TO TALK TO DESKTOP PCS AND MACINTOSH COMPUTERS DESPITE CRITICISM THAT ITS NEWTON MESSAGEPAD HAS TROUBLE READING HANDWRITING APPLE INSISTS THAT SALES HAVE BEEN BETTER THAN EXPECTED THE MESSAGEPAD IS SELLING WELL IN ITS FIRST MONTH JOHN SCULLY APPLE'S CHAIRMAN TOLD ATTENDEES OF A COMPUTER CONFERENCE IN BOSTON ADDING THAT APPLE HAS SOLD CLOSE TO 10000 UNITS SINCE IT BEGAN SELLING THE DEVICE AUG 2 ALFRED J STEIN VLSI'S CHAIRMAN SAID A HANDFUL OF OTHER COMPUTER VENDORS IN ADDITION TO COMPAQ ARE CONSIDERING PRODUCING HANDHELD MACHINES BASED ON THE CHIP SET WHICH IS MOUNTED ON A BOARD ABOUT THE SIZE OF A BUSINESS CARD FURTHER DETAILS WEREN'T DISCLOSED 9309150176 930915 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BULLWHACKERS INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA HANIFEN IMHOFF INC BURNHAM PACIFIC PROPERTIES INC AN OFFERING OF 200 MILLION IN COMMON STOCK AND CONVERTIBLE DEBENTURES DEL WEBB CORP A SHELF OFFERING OF UP TO 50 MILLION IN SENIOR SUBORDINATED DEBT SECURITIES DSC COMMUNICATIONS CORP AN OFFERING OF 25 MILLION SHARES OF COMMON STOCK VIA GOLDMAN SACHS & CO 9309150175 930915 REVIEW & OUTLOOK EDITORIAL ASIDES NO DEFENSE TRY OFFENSE ONE OF THE MORE REVEALING POLITICAL BATTLES OF THE MOMENT IS UNFOLDING IN CALIFORNIA OVER THE SCHOOLCHOICE INITIATIVE AND WE HOPE TO PROVIDE PERIODIC REPORTS FROM THE FRONT AN INTERESTING ARTICLE ON THE FIGHT IN THE SAN DIEGO UNIONTRIBUNE NOTES THAT UNIONIZED TEACHERS HAVE BEEN HANDED A WALLETSIZE CARD WITH TALKING POINTS AGAINST THE VOUCHER INITIATIVE ON THE NOVEMBER BALLOT TIP NO 1 DON'T DEFEND OR DEBATE PUBLIC SCHOOL PERFORMANCE STICK TO WHY THIS PROPOSITION IS BAD 9309150174 930915 FIRST WESTERN BANCORP LOANS NEW CASTLE PA FIRST WESTERN BANCORP SAID IT WILL OFFER JOBLOSS MORTGAGE INSURANCE TO CUSTOMERS WHO APPLY FOR RESIDENTIAL MORTGAGE LOANS THROUGH ITS FIRST WESTERN NA BANK AND FIRST FEDERAL OF WESTERN PENNSYLVANIA UNITS FIRST WESTERN NA IS THE NEW NAME OF TWO FIRST WESTERN UNITS THAT WERE CONSOLIDATED THIS WEEK FIRST NATIONAL BANK OF WESTERN PENNSYLVANIA AND BEAVER TRUST CO 9309150173 930915 POLITICS & POLICY CLINTON NEEDS TO SWAY THE PUBLIC ON NAFTA ISSUES AS POLL SHOWS THAT MANY OPPOSE THE AGREEMENT BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US CITIZENS DON'T MUCH LIKE THE NORTH AMERICAN FREE TRADE AGREEMENT AND PRESIDENT CLINTON HAS TO SWAY THEM ON A SERIES OF TOUGH ISSUES BEFORE THEY WILL FIND IT ACCEPTABLE ACCORDING TO A NEW WALL STREET JOURNAL/NBC NEWS POLL 36 OF PEOPLE SURVEYED OPPOSE THE NAFTA PACT WITH CANADA AND MEXICO WHILE JUST 25 APPROVE OF IT THAT'S THE LOWEST LEVEL OF APPROVAL AND HIGHEST LEVEL OF DISAPPROVAL REGISTERED AT ANY TIME THIS YEAR WHAT'S MORE A MAJORITY OF THOSE SURVEYED THINK THAT US MANUFACTURING JOBS WILL MOVE TO MEXICO THAT ONLY BIG US CORPORATIONS WILL BENEFIT FROM THE DEAL AND THAT MEXICO CAN'T BE TRUSTED TO FOLLOW SIDE DEALS ON THE ENVIRONMENT AND LABOR STANDARDS FOR PRESIDENT CLINTON WHO YESTERDAY LAUNCHED HIS CAMPAIGN TO WIN CONGRESSIONAL APPROVAL OF NAFTA THE SILVER LINING IN THIS DARK CLOUD IS THE FACT THAT A SIGNIFICANT NUMBER OF PEOPLE IN THE COUNTRY HAVEN'T FIRMLY MADE UP THEIR MINDS FULLY 34 OF THOSE SURVEYED SAID THEY HAVEN'T HEARD ENOUGH ABOUT NAFTA TO DECIDE THEIR OPINION AS A RESULT IT APPEARS THAT A BROAD SWATH OF THE PUBLIC STILL COULD BE CONVINCED THAT THEIR FEARS ARE MISPLACED FOR ONE THING MOST PEOPLE DON'T THINK ANY POSSIBLE ILL EFFECTS FROM NAFTA WILL HIT THEM PERSONALLY 72 SAY NAFTA WON'T AFFECT EITHER THEIR JOB OR COMPANY OR THEIR SPOUSE'S JOB OR COMPANY AND THE SURVEY ALSO INDICATES THAT THOUGH THE PUBLIC SHOWS CLEAR MISGIVINGS ABOUT NAFTA THE TRADE DEAL DOESN'T RANK VERY HIGH ON ITS LIST OF PRESSING CONCERNS IT ISN'T CLEAR WHETHER THE MISGIVINGS ABOUT NAFTA ARE THE RESULT OF THE CAMPAIGN AGAINST THE DEAL LAUNCHED BY ROSS PEROT AND OTHER FOES OR SIMPLY A REFLECTION OF NATURAL FEARS THAT CROP UP AT A TIME OF GENERAL ECONOMIC UNCERTAINTY BUT IN ANY EVENT IT'S CLEAR THAT NEITHER THE BUSH NOR THE CLINTON ADMINISTRATIONS HAVE SUCCESSFULLY TRANSMITTED THEIR ARGUMENTS THAT NAFTA WILL PRODUCE A NET INCREASE OF JOBS AND WILL ENERGIZE WHOLE EXPORTDRIVEN SECTORS OF THE US ECONOMY THE BIGGEST PROBLEM WITH NAFTA IS THE PERCEPTION THAT YOU'RE GOING TO LOSE VISIBLE JOBS TO GAIN INVISIBLE JOBS SAYS PETER HART A DEMOCRATIC POLLSTER WHO CONDUCTED THE WALL STREET JOURNAL/NBC POLL IN CONJUNCTION WITH REPUBLICAN POLLSTER ROBERT TEETER THE SURVEY WHICH CANVASSED 1006 PEOPLE IN THE US FRIDAY THROUGH MONDAY SUGGESTS THAT IT'S POSSIBLE TO SELL NAFTA IF THE PUBLIC CAN BE BROUGHT AROUND TO THE SIMPLE PROPOSITION THAT WE'RE GOING TO GAIN JOBS RATHER THAN LOSE JOBS MR HART SAYS THE NEW JOURNAL/NBC POLL IS JUST THE LATEST INDICATION OF THE TOUGH ROAD MR CLINTON WILL HAVE TO TRAVEL THIS FALL TO WIN APPROVAL OF NAFTA WHICH IS DESIGNED TO KNOCK DOWN TRADE BARRIERS BETWEEN THE THREE BIG NATIONS OF NORTH AMERICA AND CREATE A NEW HEMISPHEREWIDE TRADING BLOC ONE OF MR CLINTON'S CLEAR POLITICAL PROBLEMS WHICH IS GRAPHICALLY ILLUSTRATED IN THE SURVEY IS THE FACT THAT NAFTA IS LEAST POPULAR AMONG SOME OF HIS DEMOCRATIC PARTY'S CORE CONSTITUENCIES WHOSE SUPPORT IS CRUCIAL TO THE PRESIDENT ON HEALTH CARE AND OTHER ISSUES AMONG BLUECOLLAR WORKERS FOR EXAMPLE 18 SAY THEY FAVOR THE TRADE DEAL WHILE 45 OPPOSE IT AND ONLY 15 OF BLACKS SURVEYED FAVOR NAFTA WHILE 35 OPPOSE IT THE ONLY DEMOGRAPHIC GROUP AMONG WHICH SUPPORT APPEARS TO BE STRONG IS UPPERINCOME COLLEGEEDUCATED PEOPLE THAT SITUATION NOT ONLY COMPLICATES MR CLINTON'S TASK OF GENERATING BROADER PUBLIC SUPPORT FOR NAFTA BUT ALSO WILL MAKE IT TOUGHER FOR HIM TO COERCE RANKANDFILE DEMOCRATS IN CONGRESS TO COME DOWN IN FAVOR OF THE DEAL RIGHT NOW VOTERS WHO MAKE UP THE HEART AND SOUL OF THE DEMOCRATIC PARTY AREN'T BACKING THE DEAL SAYS REP JOHN LEWIS A GEORGIA DEMOCRAT WHO OPPOSES NAFTA MR CLINTON HAS GOT TO DO A LOT OF PREACHING TO TURN THIS AROUND MR LEWIS SAYS AT THE MOMENT THE PUBLIC SEEMS MORE INCLINED TO BELIEVE DARK PREDICTIONS THAN POSITIVE ONES ABOUT NAFTA'S CONSEQUENCES MORE THAN HALF 54 AGREE THAT WAGES IN THE US WILL HAVE TO FALL SO THAT US COMPANIES AND WORKERS CAN COMPETE WITH MEXICO AND 74 SAY MANUFACTURING JOBS WILL MOVE TO MEXICO BY A SUBSTANTIAL MAJORITY 69 TO 19 THOSE SURVEYED SAY THEY DON'T THINK MEXICO CAN BE TRUSTED TO FOLLOW NAFTA'S SIDE AGREEMENTS ON THE ENVIRONMENT AND LABOR STANDARDS BY A SMALLER MAJORITY 55 TO 37 THEY AGREE WITH THE STATEMENT THAT ONLY BIG US CORPORATIONS WILL BENEFIT FROM NAFTA A SLIGHT MAJORITY 51 AGREE THAT US EXPORTS TO MEXICO WILL INCREASE BUT ON OTHER COUNTS FEWER SEE POSITIVE RIPPLE EFFECTS JUST 40 SAY THEY AGREE THAT MORE JOBS WOULD BE CREATED THAN WOULD BE LOST UNDER NAFTA AND ONLY 36 SAY THEY AGREE THAT THE US STANDARD OF LIVING WILL RISE OVER THE LONG RUN AS A RESULT OF THE DEAL NOR DO A MAJORITY OF PEOPLE APPEAR TO BUY THE ARGUMENT THAT MEXICO WILL FALL INTO POLITICAL INSTABILITY IF NAFTA IS DEFEATED OR THAT THERE WILL BE AN UPSURGE OF ILLEGAL MEXICAN IMMIGRANTS IN THE US JUST 39 SAY THEY AGREE THAT SERIOUS POLITICAL PROBLEMS WOULD BE CREATED IN MEXICO BY A DEFEAT OF THE DEAL WHICH THE MEXICAN GOVERNMENT HAS PUSHED HARD AMONG ITS PEOPLE AND 59 SAY IMMIGRATION FROM MEXICO WILL STAY ABOUT THE SAME IF NAFTA IS DEFEATED PRECISELY THE SAME SHARE OF THOSE SURVEYED 34 SAY IMMIGRATION WILL GO UP WHETHER NAFTA IS PASSED OR DEFEATED WHAT'S MORE SENTIMENTS ABOUT NAFTA APPEAR TO GROW OUT OF BROADER DOUBTS ABOUT WHETHER AN OPEN TRADING SYSTEM REALLY BENEFITS THE US WHEN ASKED WHETHER THE NATION WOULD BE BETTER OFF WITHOUT ANY RESTRICTIONS ON TRADE WITH ITS NEIGHBORS BECAUSE THE US CAN COMPETE BETTER THAN OTHER COUNTRIES JUST 35 SAY THE US WOULD BE BETTER OFF BY CONTRAST 55 SAY THE US WOULD BE WORSE OFF WITH TRADE RESTRICTIONS LIFTED BECAUSE OTHER NATIONS WON'T PLAY FAIRLY THE POLL ALSO SUGGESTS THOUGH THAT THE CLINTON ADMINISTRATION MIGHT BE ABLE TO MAKE A TELLING ARGUMENT IN FAVOR OF NAFTA BY ASSERTING THAT THE US'S ECONOMIC COMPETITORS WILL MOVE HEAVILY INTO THE MEXICAN MARKET AND STEAL BUSINESS IF NAFTA IS DEFEATED A MAJORITY OF THOSE SURVEYED 53 AGREE THAT JAPAN AND EUROPE WILL TAKE ADVANTAGE OF ECONOMIC OPPORTUNITIES IN MEXICO AND WE WOULD LOSE THE CHANCE TO EXPORT OUR GOODS TO MEXICO IF NAFTA IS DEFEATED ALL TOLD THE SURVEY SUGGESTS THAT THE FINAL SHAPE OF PUBLIC OPINION ON NAFTA WILL BE DRAWN IN THE NEXT FEW WEEKS OF DEBATE I DON'T THINK THE PEOPLE IN THE COUNTRY ARE AGAINST NAFTA SAYS REP JOHN KASICH AN OHIO REPUBLICAN WHO ONCE SUPPORTED NAFTA BUT NOW IS WAVERING THE PROBLEM HE SAYS IS THAT PEOPLE HAVE NOT BEEN BROUGHT INTO THE EQUATION 9309150170 930915 THE BATTLE OVER NAFTA AS CONGRESS BEGINS HEARINGS AGREEMENT FACES UPHILL CLIMB BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHILE BILL CLINTON AND THE REST OF GOVERNMENT VACATIONED IN AUGUST THE FOES OF HIS NORTH AMERICAN FREE TRADE AGREEMENT DIDN'T AND THAT ZEAL EXPLAINS WHY THE PRESIDENT FACES SUCH AN UPHILL CLIMB AS HE BEGINS THE PUSH FOR CONGRESS'S APPROVAL JUST ASK REP DAN GLICKMAN I WOULD SAY I'D BEEN LEANING FOR NAFTA BUT I WAS HOME OVER THE AUGUST BREAK AND I FOUND NO PUBLIC SUPPORT FOR IT AND A LOT OF OPPOSITION SAYS THE KANSAS DEMOCRAT AT MY TOWN MEETINGS THERE WERE THE PEROT SUPPORTERS LABOR SOME SMALL BUSINESS PEOPLE ENVIRONMENTALISTS ALL AGAINST NAFTA IF MR CLINTON DOESN'T MAKE A COMPELLING CASE FOR THE TRADE AGREEMENT REP GLICKMAN ADDS THEN IT'S DIFFICULT FOR ME TO SEE HOW I CAN VOTE FOR THIS FOR ALL THE BLEAK TALK ABOUT THE PROSPECTS FOR THE FREETRADE PACT WITH CANADA AND MEXICO THE PRESIDENT STILL CAN STITCH TOGETHER A 218VOTE MAJORITY IN THE HOUSE IN THE NEXT THREE MONTHS BEFORE A VOTE BUT IT WON'T BE EASY AND THAT WILL BE ALL THE CLEARER AS EARLY AS THIS WEEK WHEN HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI THE DEMOCRATS' ACKNOWLEDGED TRADE EXPERT IS EXPECTED TO FORMALLY ANNOUNCE HIS OPPOSITION A VICTORY FOR MR CLINTON IF IT COMES IS LIKELY TO HOLD THIS IRONY REPUBLICANS WHO DIDN'T PROVIDE A SINGLE VOTE FOR HIS ECONOMIC PROGRAM WILL SUPPLY THE MAJORITY OF VOTES FOR NAFTA IN THE SENATE WHICH BEGINS HEARINGS ON THE TRADE AGREEMENT TODAY SUPPORTERS HAVE VOTES TO SPARE THAT WON'T MATTER HOWEVER IF THE AGREEMENT FIRST GOES DOWN IN THE MORE HOSTILE HOUSE NEITHER SIDE IN THE FIGHT HAS TAKEN A COUNT SINCE LAWMAKERS RETURNED THIS MONTH BUT BOTH AGREE CITING ANECDOTAL EVIDENCE LIKE REP GLICKMAN'S SHIFT TOWARD THE OPPOSITION THAT THE PRONAFTA FORCES IN THE HOUSE ALREADY BEHIND LOST GROUND OVER THE SUMMER BREAK UNDER THE SPECIAL PROCEDURES FOR DEBATING NAFTA CONGRESS HAS 90 DAYS TO APPROVE OR REJECT THE AGREEMENT WITHOUT AMENDMENT AFTER THE PRESIDENT FORMALLY SUBMITS IT FOR CONSIDERATION THAT'S EXPECTED THIS FALL AND THE WHITE HOUSE AND SUPPORTERS ON CAPITOL HILL SAY THEY INTEND TO PRESS FOR A VOTE BEFORE CONGRESS RECESSES AT THE END OF THE YEAR BUT THE TIME LIMITATION APPLIES TO LEGISLATIVE RATHER THAN CALENDAR DAYS WHICH MEANS CONGRESSIONAL ACTION COULD YET BE PUSHED BACK INTO 1994 WITH YESTERDAY'S WHITE HOUSE CEREMONY MR CLINTON AND HIS LIEUTENANTS OPENED THEIR COUNTEROFFENSIVE FOR NAFTA BUT IT COMPETES FOR ATTENTION THIS FALL WITH OTHER ISSUES NOTABLY THE HIGHERPRIORITY EFFORT TO OVERHAUL HEALTH CARE AND THAT FACT ALONG WITH A MORE GENERAL UNEASINESS ABOUT MR CLINTON'S CONSTANCY UNDER PRESSURE LEAVES SOME OF HIS PRONAFTA ALLIES ESPECIALLY ON THE REPUBLICAN SIDE SUSPICIOUS ABOUT HIS LEADERSHIP THEY HAVE TO GET OUT FRONT THEY HAVE TO DO THE JOB SAYS GEORGIA REP NEWT GINGRICH THE SECONDRANKING HOUSE GOP LEADER BUT AFTER MR CLINTON'S PERFORMANCE YESTERDAY AND A SCHEDULED TRIP TODAY TO NEW ORLEANS MR GINGRICH IS ENCOURAGED ENOUGH TO PREDICT A COMEFROMBEHIND VICTORY I FEEL LIKE THE ATLANTA BRAVES DID A MONTH AGO HOUSE REPUBLICANS WANT MR CLINTON TO DELIVER UP TO 130 HOUSE DEMOCRATS ABOUT HALF THE PARTY'S TOTAL IN SUPPORT OF THE TRADE PACT THAT'S VIRTUALLY IMPOSSIBLE DEMOCRATS RELY ON VOTES AND FUNDS FROM ORGANIZED LABOR EVEN IN DISTRICTS LIKE THOSE IN THE SOUTH WHERE UNIONS AREN'T A MAJOR FORCE OF THE 528000 RAISED BY THE AVERAGE HOUSE DEMOCRATIC CANDIDATE FOR THE LAST ELECTION SOME 83000 OR 16 CAME FROM UNIONS' POLITICALACTION COMMITTEES ACCORDING TO FIGURES FROM THE CENTER FOR RESPONSIVE POLITICS ABOUT A QUARTER OF HOUSE DEMOCRATS HAIL FROM THE INDUSTRIAL BELT WHICH HAS MOST TO FEAR FROM ANY SHORTTERM JOB LOSSES AND LAWMAKERS ALL OVER FACE VOTERS WITH DEEPSEATED FEARS ABOUT THEIR ECONOMIC FUTURES FEARS THAT ARE FED BY ORGANIZED LABOR AND BY ROSS PEROT WITH THEIR PREDICTIONS OF MASS JOB LOSSES TO MEXICO BY SUPPORTERS' CALCULATIONS MR CLINTON HAS TO HAVE AT LEAST 90 TO 100 DEMOCRATS AND 120 TO 130 OF THE 176 HOUSE REPUBLICANS AT THE MOMENT THE ADMINISTRATION IS AT LEAST 30 VOTES SHORT IN EACH CAMP THE WINNING COMBINATION CAME TOGETHER IN A TEST VOTE IN 1991 WHEN 140 REPUBLICANS AND 91 DEMOCRATS SUPPORTED A MEASURE ALLOWING TRADE AGREEMENTS TO BE DEBATED UNDER FASTTRACK PROCEDURES BARRING AMENDMENTS OR FILIBUSTERS NOW HOWEVER THE VOTE IS MORE CLEARLY A REFERENDUM ON NAFTA IT'S THE ISSUE ITSELF THAT'S SELLING THIS FOR US SAYS BILL CUNNINGHAM OF THE AFLCIO I HAVEN'T SEEN IT IN MY 22 YEARS HERE IN WASHINGTON THE DIVERSITY OF THE COALITION WE'VE PUT TOGETHER ALL TOP HOUSE DEMOCRATIC LEADERS SUPPORTED THE 1991 MEASURE TODAY ONLY SPEAKER THOMAS FOLEY FROM EXPORTCONSCIOUS WASHINGTON STATE IS SUPPORTIVE OF NAFTA WHILE REP GEPHARDT IS OPPOSED AND MAJORITY WHIP DAVID BONIOR FROM LABORSTRONG MICHIGAN IS TIRELESSLY LEADING THE OPPOSITION OF REP BONIOR'S FOUR CHIEF DEPUTIES THREE ARE OPPOSED IN ANOTHER CHANGE SINCE 1991 MR PEROT HAS COME ON THE SCENE WITH HIS GUTLEVEL RHETORIC AND BANDS OF ACTIVIST SUPPORTERS WHO POTENTIALLY ARE SWING BLOCS IN NUMEROUS DEMOCRATS' AND REPUBLICANS' DISTRICTS NEARLY A QUARTER OF HOUSE MEMBERS ARE NEWCOMERS MANY OF WHOM FEEL VULNERABLE TO REELECTION CHALLENGES INSPIRED BY THE PEROT OR LABOR FORCES THE DEMOCRATIC BASE FOR NAFTA BEGINS WITH JUST SOME 50 FREETRADERS DRAWN HEAVILY FROM THE NORTHWEST AND THE SOUTHWEST WITH THEIR LONGSTANDING ECONOMIC TIES TO ASIA AND MEXICO AND FROM THE WAYS AND MEANS COMMITTEE THAT'S RESPONSIBLE FOR TRADE ISSUES BEYOND THAT NAFTA SUPPORTERS HOPE TO PICK UP VOTES FROM LAWMAKERS CONSIDERED SAFE BETS FOR REELECTION THEY ALSO LOOK TO ILLINOIS LAWMAKERS WHO CAN BE PERSUADED BY TWO CHICAGOANS THE ADMINISTRATION'S NEW NAFTA LOBBYIST WILLIAM DALEY AND WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI THEY'RE TARGETING SOCALLED GOOD GOVERNMENT DEMOCRATS WHO ARE PERSONALLY INCLINED TO FAVOR THE PACT BUT HAVE RESERVATIONS THIS GROUP INCLUDES SUCH MEMBERS AS DAVID PRICE OF NORTH CAROLINA AND PHIL SHARP OF INDIANA BOTH FORMER POLITICAL SCIENCE PROFESSORS AND JIM BACCHUS OF FLORIDA WHO WORKED FOR THE OFFICE OF THE US TRADE REPRESENTATIVE DURING THE CARTER ADMINISTRATION AND DESPITE THE BLACK CAUCUS'S DECISION TO OPPOSE THE TRADE PACT NAFTA BACKERS HOPE TO MAKE SOME INROADS THERE COMMERCE SECRETARY RON BROWN SAID YESTERDAY THAT THE ADMINISTRATION WILL CALL ON SUCH PROMINENT BLACKS AS FORMER ATLANTA MAYOR ANDREW YOUNG TO ARGUE THAT APPROVAL WOULD LEAD TO FURTHER TRADE DEALS THAT WOULD BENEFIT NATIONS IN THE CARIBBEAN AND THE THIRD WORLD ADMINISTRATION NOSECOUNTERS ULTIMATELY HOPE TO PICK UP A HALFDOZEN OR MORE OF THE 40 CAUCUS MEMBERS AND THEY'LL BARGAIN JUST AS THEY DID IN THE LAST DAYS OF THE SUMMER'S BUDGET FIGHT ADMINISTRATION OFFICIALS HOPE SOME MEMBERS OF THE LARGE FLORIDA DELEGATION NEARLY ALL OF WHOM NOW OPPOSE THE PACT CAN BE CONVERTED BY LEGISLATIVE CHANGES AIMED AT THE CONCERNS OF HOMESTATE CITRUS GROWERS WHO COMPETE WITH MEXICO LIKEWISE THE ADMINISTRATION MAY NEGOTIATE SOME CONCESSION FOR SUGARSTATE LAWMAKERS BECAUSE FREE TRADE IS SO CENTRAL TO REPUBLICAN PHILOSOPHY AND TO THE PARTY'S UPPERINCOME AND BUSINESS SUPPORTERS NAFTA IS A FAR EASIER SELL AMONG GOP MEMBERS THE KEY IS THE PRESIDENT SAYS REP JIM KOLBE OF ARIZONA A LEADING GOP SUPPORTER OF THE AGREEMENT REPUBLICANS WANT SOME POLITICAL COVER ESPECIALLY SINCE SOME OF THEM HAVE MORE TO FEAR FROM THE PEROTISTAS BACK HOME THAN DO DEMOCRATS THE UNIONS AND PEROT ARE DELIVERING A LOT OF PEOPLE INTO THE TOWN MEETINGS AND MEMBERS ARE HEARING AN EARFUL SAYS TONY BLANKLEY A TOP HOUSE GOP AIDE NAFTA HE SAYS CAN PASS IF THE PRESIDENT JUMPS IN WITH BOTH FEET 9309150169 930915 THE BATTLE OVER NAFTA PEROT GOT NUMBERS ON JOBS AT RISK FROM A BROCHURE BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUST HOW DID ROSS PEROT CALCULATE THAT THE NORTH AMERICAN FREE TRADE AGREEMENT PUTS AT RISK 59 MILLION US JOBS THE FIGURE STEMS FROM A PROMOTIONAL BROCHURE WITH A DOSE OF EXAGGERATION ADDED IN THE BROCHURE WAS DISTRIBUTED BY A FLEDGLING INVESTMENT FUND AMERIMEX WHICH WANTS TO RAISE 50 MILLION TO BUY ABOUT A DOZEN SMALL US COMPANIES AND LOCATE THEM IN MEXICO AMERIMEX SAID IT WOULD CONSIDER BUYING LOW TO MIDTECHNOLOGY MANUFACTURERS THAT PAY WORKERS 7 TO 10 AN HOUR TRADE ANALYST PAT CHOATE IN A STUDY PUBLISHED IN APRIL CALLED THE AMERIMEX CRITERIA A ROSETTA STONE FOR DETERMINING WHICH INDUSTRIES MAY MOVE TO MEXICO USING COMMERCE DEPARTMENT INDUSTRIAL DATA HE SELECTED 75 INDUSTRIAL GROUPINGS WHICH EMPLOY 59 MILLION PRODUCTION WORKERS MR PEROT USED THAT STUDY AS THE BASIS FOR SENATE TESTIMONY THIS SPRING AND REPEATED THE NUMBERS IN HIS ANTINAFTA TRACT SAVE YOUR JOB SAVE OUR COUNTRY TROUBLE IS MR CHOATE DIDN'T EVEN USE THE AMERIMEX CRITERIA ACCURATELY A NUMBER OF THE INDUSTRIES ON HIS ENDANGERED LIST PAY MUCH MORE THAN 7 TO 10 AN HOUR IN THE BROCHURE PLUS HE WENT BEYOND LOWTOMIDTECHNOLOGY INDUSTRIES TO INCLUDE SUCH HIGHTECH INDUSTRIES AS MACHINERY ELECTRONICS AND COMMUNICATIONS AS WELL AS AEROSPACE AND DEFENSE COMPANIES THAT WOULDN'T BE ALLOWED TO MOVE TO MEXICO FOR NATIONAL SECURITY REASONS MR CHOATE ALSO CHEERFULLY ACKNOWLEDGES THAT HE DIDN'T QUERY COMPANIES WITHIN THE INDUSTRY GROUPINGS TO SEE WHETHER THEY WERE EVEN THINKING OF MOVING NEITHER HE NOR MR PEROT HAVE PREDICTED IN PRINT HOW MANY OF THOSE 59 MILLION WORKERS WOULD ACTUALLY LOSE THEIR JOBS BUT IN AN INTERVIEW MR CHOATE SAID THE NUMBER WILL CERTAINLY BE ONE MILLION TWO MILLION OR MORE NONSENSE SAID ALAN BINDER A MEMBER OF THE WHITE HOUSE'S COUNCIL OF ECONOMIC ADVISERS THE WORK IS EXTREMELY SHODDY BASED ON VERY LITTLE ANALYSIS IGNORING A GREAT MANY FACTS NOT TO MENTION EVERYTHING WE KNOW ABOUT ECONOMIC THEORY HE SAID FORMER PRESIDENT JIMMY CARTER SPEAKING AT A NAFTA SIGNING CEREMONY WENT EVEN FURTHER WE HAVE A DEMAGOGUE WHO HAS UNLIMITED FINANCIAL RESOURCES AND WHO IS EXTREMELY CARELESS WITH THE TRUTH HE SAID 9309150168 930915 INTERNATIONAL JAPAN'S WEAK ECONOMIC DATA SET STAGE FOR NEW PACKAGE OF STIMULUS MEASURES BY CRAIG FORMAN AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S TRADE SURPLUS CONTINUES TO GROW AS ITS ECONOMY SHRINKS WHILE THE GOVERNMENT FINETUNES NEW ATTEMPTS TO CURB THE TRADE IMBALANCE AND PUT SOME LIFE BACK INTO THE STALLED ECONOMY THE COUNTRY'S INFLATIONADJUSTED GROSS NATIONAL PRODUCT SHRANK 05 IN THE APRILJUNE QUARTER OR AT AN ANNUALIZED RATE OF 2 THE ANNUALIZED RATE OF DECLINE WAS ABOUT TWICE AS BAD AS SOME ANALYSTS' PRIOR ESTIMATES MEANTIME JAPAN REPORTED THAT ITS TRADE SURPLUS WIDENED 75 IN AUGUST TO 754 BILLION FROM A YEAR EARLIER THE 32ND CONSECUTIVE YEARONYEAR EXPANSION WITH THE US THE MONTHLY TRADE SURPLUS WIDENED 10 TO 345 BILLION THE TRADE IMBALANCE WAS BOOSTED BY THE STRONG YEN WHICH INCREASES THE VALUE OF JAPANESE EXPORTS IN DOLLAR TERMS WHILE REDUCING THE VALUE OF JAPAN'S IMPORTS IN YEN TERMS THE OVERALL TRADE SURPLUS NARROWED ABOUT 11 FROM THE SAME MONTH A YEAR AGO THE LACKLUSTER GNP PERFORMANCE MARKED A MUCH MORE RAPID DETERIORATION IN THE JAPANESE DOMESTIC ECONOMY THAN ANTICIPATED DOMESTIC DEMAND SLID 01 PACED BY A 14 DECLINE IN NONRESIDENTIAL DEMAND THE SLIDE WOULD HAVE BEEN WORSE WITHOUT A 225 INCREASE IN GOVERNMENTFINANCED PUBLIC INVESTMENT AND A BIG JUMP IN HOUSING SPENDING THE GOVERNMENT ADDED THAT GNP SHRANK 08 IN THE SECOND QUARTER FROM A YEAR EARLIER THE FIRST SUCH ANNUAL DECLINE SINCE THE OIL SHOCK OF THE MID1970S THE GNP FIGURE WAS MUCH WORSE THAN EXPECTED SAID GEOFFREY BARKER AN ECONOMIST AT BARING SECURITIES IN TOKYO THE ECONOMY HASN'T YET BOTTOMED OUT THE BLEAK DATA COUPLED WITH THE FEELING THAT THE CURRENT QUARTER WILL ALSO BE BAD SET THE BACKDROP FOR THE LIKELY ANNOUNCEMENT THURSDAY OF A PACKAGE OF GOVERNMENT STIMULUS MEASURES THE GOVERNMENT'S OPTIONS RANGE FROM A NEW ECONOMIC PACKAGE ESTIMATED AT AS MUCH AS SIX TRILLION YEN 5654 BILLION TO DEREGULATION MEASURES SUCH AS LIBERALIZING TAXI FARES AND OPENING THE BREWING INDUSTRY TO NEW COMPETITION MANY PEOPLE EXPECT PRIME MINISTER MORIHIRO HOSOKAWA TO ANNOUNCE FRESH INITIATIVES BEFORE HIS SUMMIT WITH PRESIDENT CLINTON LATE NEXT WEEK WE MUST DO SOMETHING SAID A SENIOR JAPANESE MONETARY OFFICIAL WAVING A SET OF DOCUMENTS CHARTING THE RECENT COURSE OF THE USJAPANESE TRADE IMBALANCE PRESSURE IS GROWING FOR RESTRUCTURING AND SOME DEREGULATION IN THE ECONOMY THE BIG QUESTION IS TO WHAT EXTENT NEW SPENDING WILL SPUR THE ECONOMY THE GOVERNMENT ALREADY HAS EMBARKED ON A MULTITRILLIONYEN SPENDING PACKAGE THIS YEAR WITHOUT MUCH EVIDENCE OF IMPROVEMENT OTHER MEASURES INCLUDING A POSSIBLE REDUCTION IN INTEREST RATES AND PERHAPS EVEN TAX RATES MAY NOT DO MUCH TO QUICKLY RAISE SLUGGISH DOMESTIC DEMAND I MYSELF HAD BEEN EXPECTING THE ECONOMY TO BE TURNING AROUND THIS SPRING BUT NOW I CAN'T REALLY SEE WHEN WE CAN CHANGE DIRECTION SAID TADAHIRO SEKIMOTO PRESIDENT OF NEC CORP HE SAID THE YEN'S 20 RISE AGAINST THE DOLLAR THIS YEAR HAS BEEN TOO MUCH TO ALLOW AN EARLY RECOVERY HE DOESN'T EXPECT ONE UNTIL EARLY NEXT YEAR BUT SOME ANALYSTS SEE THE BEGINNINGS OF A SILVER LINING BARING'S MR BARKER SAID THE AUGUST TRADE NUMBERS SHOWED A 17 DROP IN EXPORTS BY VOLUME AND A SURPRISING 85 JUMP IN IMPORTS BY VOLUME PACED BY MACHINERY FOOD AND RAW MATERIALS SUCH IMPORT STRENGTH IN THE FACE OF DECLINING DOMESTIC DEMAND OVERALL SHOWS A SUCKING IN OF CHEAP IMPORTS AS COMPANIES TRY TO CUT COSTS AND CONSUMERS ARE PREPARED TO BUY SAID MR BARKER BUT ROBERT FELDMAN AN ECONOMIST WITH SALOMON BROTHERS ADDED THAT THERE IS A SCHIZOPHRENIA IN THE NUMBERS THAT MAKES CALLING A TURN IN THE ECONOMY DIFFICULT AUTO EXPORTS 15 OF JAPAN'S EXPORTS FELL 172 IN VOLUME PARTICULARLY HARDHIT BY THE YEN'S RISE EXPORTS OF VIDEO EQUIPMENT FELL 152 IN VALUE BUT SEMICONDUCTOR EXPORTS SOARED 296 IN VALUE PACED BY A 353 SURGE IN TRADE WITH THE US 9309150167 930915 DEAN OF DOODLEBUGS LIONEL STANGE IS BIG IN US INSECT CIRCLES HE KNOWS ALL ABOUT ANT LIONS SOME 1300 SPECIES AT LEAST INTRODUCING MR HORSEFLY' BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL GAINESVILLE FLA ALTHOUGH THIS ARTICLE IS ABOUT DOODLEBUGS WHICH AREN'T BUGS AT ALL WE PREFACE IT WITH A RIDDLE ABOUT MR HORSEFLY'S GRANDFATHER LIONEL STANGE THE NATION'S FOREMOST AUTHORITY ON DOODLEBUGS IS LEADING A VISITOR THROUGH HIS PLACE OF WORK A BIG FLORIDA DEPARTMENT OF AGRICULTURE MUSEUM IN THIS UNIVERSITY TOWN WHEN HE SPOTS A WHITEHAIRED MAN IN KHAKIS AND A WRINKLED SHIRT WORKING AT THE END OF A ROW OF TALL WOOD CABINETS THERE'S MR HORSEFLY HE ANNOUNCES HE INTRODUCES THE MAN AS DR FAIRCHILD AN ENTOMOLOGIST WHO HAS ONE OF THE WORLD'S BIGGEST HORSEFLY COLLECTIONS WITH ABOUT 125000 SPECIMENS GB FAIRCHILD WHOSE FRIENDS CALL HIM SANDY HAS JUST CELEBRATED HIS 87TH BIRTHDAY CAN YOU GUESS WHO HIS GRANDFATHER WAS DR STANGE ASKS WELL HERE ARE SOME MORE CLUES DR FAIRCHILD'S MATERNAL GRANDFATHER WAS ONE OF THE BESTKNOWN INVENTORS IN AMERICAN HISTORY DR FAIRCHILD'S FATHER DAVID WAS ONE OF THE MOST CELEBRATED EXOTICPLANT HUNTERS OF THE EARLY 20TH CENTURY MIAMI'S FAIRCHILD TROPICAL GARDEN IS NAMED FOR HIM SO WE'LL DROP MR HORSEFLY UNTIL LATER NOW DOODLEBUGS DOODLEBUGS ARE TINY INSECTS THAT LIVE IN LOOSE SOIL OR SAND THEY ALSO ARE KNOWN AS ANT LIONS WHICH AREN'T BUGS ANY MORE THAN THEY ARE LIONS TRUE BUGS BELONG TO THE ORDER HEMIPTERA AND DOODLEBUGS BELONG TO THE ORDER NEUROPTERA BUT THAT'S NITPICKING NITS AREN'T BUGS EITHER DOODLEBUGS ARE SO NAMED FOR THE DOODLELIKE LINES THE LARVAE DESCRIBE IN THE SAND AS THEY SCURRY ABOUT OFTEN IN REVERSE BECAUSE SOME SPECIES HAVE LOST THE ABILITY TO MOVE FORWARD ANT LIONS ARE NAMED FOR THE FEROCIOUS WAY THEY PREY ON ANTS A LARVAL ANT LION WILL DIG A HOLE IN THE SAND IN THE SHAPE OF AN INVERTED FUNNEL AND THEN WAIT AT THE BOTTOM WHEN A WANDERING ANT FALLS IN THE LION POUNCES TECHNICALLY THE TERM DOODLEBUG APPLIES ONLY TO THE LARVAL STAGE BECAUSE ADULTS HAVE FOUR WINGS AND FLY THE TERM ANT LION APPLIES TO BOTH YOUNG AND OLD THOUGH IT IS MAINLY THE YOUNG LIONS THAT EAT ANTS OLDER ONES PREFER APHIDS AND CATERPILLARS A CLASSIC OF DOODLEBUG LITERATURE DEMONS OF THE DUST A 1930 TOME BY A HARVARD ENTOMOLOGY PROFESSOR NAMED WILLIAM MORTON WHEELER CALLS THE LARVAE UGLY IF NOT REPULSIVE AND SAYS ADULTS LEAD RATHER FUTILE LIVES SUCH COMMENTS MAY HELP EXPLAIN WHY DOODLEBUGS HAVE NEVER BEEN PARTICULARLY TRENDY THE LATEST CATALOG OF ANT LIONS WAS PUBLISHED IN 1866 IT INCLUDED 17 GENERA AND 317 SPECIES BY NOW 180 GENERA AND SOME 1300 SPECIES HAVE BEEN DESCRIBED IN SCIENTIFIC PAPERS BUT NOBODY HAS PULLED THEM TOGETHER IN ONE VOLUME WHICH BRINGS US BACK TO LIONEL STANGE DR STANGE PRONOUNCED STANGEE IS A TAXONOMIC ENTOMOLOGIST IN OTHER WORDS HE CLASSIFIES INSECTS BY SPECIES GENUS TRIBE AND THE LIKE HE HAS PUBLISHED ABOUT 20 SCIENTIFIC PAPERS ON ANT LIONS PLUS ANOTHER 50 OR 60 ON WASPS BEES AND SNAILS AND HE HAS NAMED A SCORE OF NEW ANT LION SPECIES AND NOW FROM A BATTERED BEIGE DESK IN A CLUTTERED CORNER OFFICE HE IS PUTTING THE FINISHING TOUCHES ON THE FIRST WHOLEEARTH ANTLION CATALOG IN MORE THAN A CENTURY I'VE GOT IT DONE ESSENTIALLY SAYS THE 58YEAROLD DR STANGE A GRAYHAIRED MAN WITH A PLEASANT MANNER HE ADDS THAT IT HAS BEEN DELAYED BY THE RIGORS OF ESTABLISHING SOME NEW CLASSIFICATIONS TWO NEW TRIBES AND SIX NEW GENERA WITH WHICH TO DEFINE ANT LIONS DR STANGE HAS BEEN WORKING ON THE CATALOG FOR ABOUT 15 YEARS WHILE PERFORMING HIS REGULAR JOB IDENTIFYING INSECTS FOR THE STATE AGRICULTURE DEPARTMENT HE HOPES TO PUBLISH THE CATALOG NEXT YEAR IT WILL INCLUDE DESCRIPTIONS AND DRAWINGS PLUS A SYSTEM HE DEVISED FOR QUICK IDENTIFICATION OF ANY GIVEN ANT LION HIS SUBJECT IS RATHER A MOVING TARGET THERE'S ALWAYS A NEW SPECIES COMING UP HE SAYS YOU CAN'T WAIT ON THAT OR YOU'LL NEVER GET DONE THE CATALOG SHOULD CONFIRM DR STANGE'S ALREADY REDOUBTABLE REPUTATION AS THE DEAN OF DOODLEBUG STUDIES IN THE US HE CAN LIST THE WORLD'S OTHER DOODLEBUG EXPERTS ON THE FINGERS OF ONE HAND THE ONLY OTHER AMERICAN IS A MAN WITH WHOM HE OFTEN WORKS BRUCE MILLER A RESEARCH ASSOCIATE WITH THE MUSEUM HERE WHO MAKES HIS LIVING AS A SNAKE BREEDER MY FORMAL TRAINING IS AS AN ENTOMOLOGIST MR MILLER EXPLAINS BUT AT THE TIME THERE WERE NOT A LOT OF JOBS AVAILABLE OLIVER FLINT A CURATOR IN THE SMITHSONIAN INSTITUTION'S ENTOMOLOGY DEPARTMENT CREDITS DR STANGE WITH MAKING THE ANT LION FAIRLY WELL KNOWN IN US INSECT CIRCLES IF THAT SOUNDS LIKE FAINT PRAISE CONSIDER THAT THERE ARE MILLIONS OF SPECIES OF INSECTS IN THE WORLD MANY AREN'T KNOWN AT ALL WHAT'S MORE DR FLINT SAYS ANT LIONS AREN'T PARTICULARLY EASY TO IDENTIFY UNLESS YOU'RE LIONEL HE EXPLAINS SOME OF THEM ARE VERY CRYPTIC SPEAKING OF CRYPTIC THE TERM DOODLEBUG IS A RELATIVELY NEW ONE DATING TO BETWEEN 1865 AND 1870 THE TERM ANT LION IS AN OLD ONE FOUND IN THE ORIGINAL LATIN IN MANUSCRIPTS FROM THE SIXTH AND SEVENTH CENTURIES THE FAMILY'S SCIENTIFIC NAME MYRMELEONTIDAE IS GREEK FOR ANT LION DOODLEBUG ALSO IS THE NAME OF VARIOUS VEHICLES DIVINING RODS ARE CALLED DOODLEBUGS AND DOODLEBUG IS THE NAME TAKEN BY A MEMBER OF THE POPULAR RAP GROUP DIGABLE PLANETS THE OTHERS ARE BUTTERFLY AND LADYBUG DR STANGE'S INTEREST IN ANT LIONS BEGAN IN HIS TEENAGE YEARS IN CALIFORNIA WHEN HE ENCOUNTERED THEM ON INSECTCOLLECTING TRIPS HE WROTE HIS PHD DISSERTATION ON ANT LIONS AT THE UNIVERSITY OF CALIFORNIA AT DAVIS IN THE MID1960S HE HAS WORKED ON THEM EVER SINCE FOR 12 OF THOSE YEARS AT A UNIVERSITY IN ARGENTINA HE CONCEDES THAT HIS SPECIALTY IS RATHER ARCANE HOWEVER HE SAYS I'M SURE THERE ARE NUMEROUS CASES OF THAT IN ENTOMOLOGY WHICH BRINGS US BACK TO DR FAIRCHILD OTHERWISE KNOWN AS MR HORSEFLY HE ATTRIBUTES HIS LONGEVITY 87 YEARS AND COUNTING TO HIS BEING AN ENTOMOLOGIST THE THING IS YOU ALWAYS HAVE AN INTEREST YOU DON'T GIVE UP AND SAY THE HELL WITH IT HE SAYS THERE IS ALWAYS ONE NEW SPECIES TO BE DESCRIBED ONE NEW BUG TO BE MOVED TO A DIFFERENT BOX AS FOR THE RIDDLE OF HIS GRANDFATHER THE ANSWER IS IN MR HORSEFLY'S FULL NAME ALEXANDER GRAHAM BELL FAIRCHILD THE WHOLE DAMN BUSINESS HE SAYS 9309150166 930915 JENNIFER CONVERTIBLES SALES ROSE PARAMUS NJ JENNIFER CONVERTIBLES INC SAID AUGUST SALES ROSE 59 TO 81 MILLION FROM 51 MILLION A YEAR EARLIER SALES AT STORES OPEN MORE THAN ONE YEAR INCREASED 24 IN AUGUST TO 63 MILLION FROM 51 MILLION JENNIFER CONVERTIBLES A SPECIALTY RETAILER OF SOFABEDS OPERATES 34 WHOLLY OWNED STORES AND RECEIVES ROYALTIES FROM 88 LICENSED STORES 9309150165 930915 WHO'S NEWS SHAWMUT NATIONAL CORP SHAWMUT NATIONAL CORP HARTFORD CONN ALAN R BUFFINGTON A FORMER SENIOR VICE PRESIDENT AND HEAD OF SYSTEMS FOR THE EMPLOYEE BENEFITS GROUP AT CIGNA CORP WAS NAMED EXECUTIVE VICE PRESIDENT OF SHAWMUT BANK AND SHAWMUT BANK CONNECTICUT AND HEAD OF THE CORPORATE SERVICES GROUP MR BUFFINGTON 47 YEARS OLD WILL ASSUME THE RESPONSIBILITIES OF JAMES A DALEY WHO RETIRED IN JULY 9309150162 930915 TASK FORCE SEEKS TO BOOST FUNDING OF PENSION PLANS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL TASK FORCE IS PREPARING TO RECOMMEND LEGISLATION INTENDED TO BOOST CORPORATE CONTRIBUTIONS TO UNDERFUNDED PENSION PLANS ACCORDING TO A GOVERNMENT OFFICIAL FAMILIAR WITH THE RECOMMENDATIONS UNDER THE PROPOSALS COMPANIES WHOSE PENSION PLANS AREN'T FUNDED ENOUGH TO COVER RETIREES' BENEFITS ALSO WOULD HAVE TO PAY HIGHER PREMIUMS TO THE FEDERAL PENSION INSURANCE FUND SAID THE OFFICIAL WHO ASKED THAT HE NOT BE IDENTIFIED THE OFFICIAL SAID 80 OF THE EXISTING PENSION PLANS ARE FULLY FUNDED OR OVERFUNDED BUT THOSE PLANS ARE PAYING MORE THAN THEIR SHARE IN PREMIUMS TO THE FEDERAL PENSION BENEFIT GUARANTY CORP ACCORDING TO PBGC FIGURES COMPANIES WITH UNDERFUNDED PENSION PLANS ALSO CAN EXPECT TO BE ASKED FOR MORE CONSISTENT ASSESSMENTS OF THEIR PENSION OBLIGATIONS AS WELL AS FACE STRICTER REQUIREMENTS FOR PROVIDING COMPANYWIDE FINANCIAL DATA TO THE PENSION FUND THE OFFICIAL SAID IN MARCH CONCERNS ABOUT PENSION UNDERFUNDING PROMPTED LABOR SECRETARY ROBERT REICH TO APPOINT A TASK FORCE TO PROPOSE REMEDIES THE TASK FORCE INCLUDES REPRESENTATIVES FROM SEVERAL BRANCHES OF THE FEDERAL GOVERNMENT THAT DEAL WITH PENSION FUNDING AND IT HAS CONSULTED WITH LABOR AND MANAGEMENT GROUPS THE TASK FORCE'S RECOMMENDATIONS WILL HAVE TO BE APPROVED BY MR REICH AND OTHER MEMBERS OF THE ADMINISTRATION BUT THE OFFICIAL FAMILIAR WITH THE GROUP'S WORK SAID HE EXPECTS LEGISLATION TO BE EN ROUTE TO CAPITOL HILL WITHIN THE NEXT FEW WEEKS THE RECOMMENDATIONS WILL ADDRESS THE SIZE OF CONTRIBUTIONS THAT COMPANIES CAN MAKE TO THEIR PENSION PLANS THE OFFICIAL SAID UNDER CURRENT INTERNAL REVENUE SERVICE RULES CONTRIBUTIONS OF COMPANIES ARE LIMITED TO PREVENT THEM FROM OBTAINING UNFAIR TAX ADVANTAGES THE TASK FORCE IS EXPECTED TO RECOMMEND LOOSENING THAT RULE AND REQUIRING COMPANIES TO CURE PENSION SHORTFALLS MORE QUICKLY THAN IS CURRENTLY REQUIRED COMPANIES WITH UNDERFUNDED PENSION PLANS WOULD SEE THE CEILING ON THE SIZE OF THEIR PREMIUM PAYMENTS TO THE INSURANCE FUND GRADUALLY DISAPPEAR THE OFFICIAL SAID UNDER CURRENT RULES COMPANIES ARE REQUIRED TO PAY 19 PER PENSION PLAN PARTICIPANT COMPANIES WHOSE PENSION PLANS ARE UNDERFUNDED ARE CHARGED AN ADDITIONAL VARIABLERATE PREMIUM THAT IS CAPPED AT 53 A PERSON THE TASK FORCE ALSO IS EXPECTED TO ENDORSE LEGISLATION THAT WOULD ALLOW THE PBGC TO TAKE INTERIM STEPS TO SALVAGE AN UNDERFUNDED PENSION PLAN NOW THE INSURANCE FUND'S ONLY OPTION IS TO TERMINATE A DISTRESSED COMPANY'S OBLIGATIONS TO ITS PENSION PLANS AND ASSUME THE PAYMENTS WE NEED A BROADER ARRAY OF REMEDIES THE OFFICIAL SAID THE PENSION BENEFIT GUARANTY CORP CURRENTLY IS MONITORING 160 COMPANIES WHOSE PENSION PLANS ARE UNDERFUNDED BY MORE THAN 25 MILLION 9309150161 930915 NEW IMF FORECAST ON WORLD ECONOMY IS LESS OPTIMISTIC BY DAVID WESSEL AND DAVID G PEARSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL MONETARY FUND ONCE AGAIN REVISED DOWNWARD ITS FORECAST FOR THE WORLD ECONOMY WARNING IT IS NOT YET CLEAR WHETHER THE RISK OF A MORE PROLONGED DELAY IN THE RECOVERY HAS RECEDED ESPECIALLY IN CONTINENTAL EUROPE AND JAPAN IN A STILL CONFIDENTIAL UPDATE OF ITS ECONOMIC FORECAST THE IMF CAUTIONED THAT WEAK RECOVERIES IN THE US CANADA AND BRITAIN MAY FIZZLE BECAUSE EXPORT DEMAND FROM OTHER COUNTRIES REMAINS ANEMIC THE FORECAST WHICH COULD BE REVISED BEFORE IT IS RELEASED PUBLICLY LATER THIS MONTH REFLECTS A SLIGHTLY GLOOMIER VIEW OF THE US ECONOMY THAN THE PREVIOUS IMF OUTLOOK THE IMF NOW EXPECTS THE US ECONOMY TO GROW 24 AFTER INFLATION THIS YEAR AND 27 NEXT IN APRIL IT FORECAST 32 GROWTH IN EACH YEAR IMF ECONOMISTS DON'T EXPECT US CONSUMERS WHO ACCOUNTED FOR MUCH OF THE STRENGTH OF THE US ECONOMY OVER THE PAST YEAR TO KEEP IT UP WITH THE SAVING RATE AT SUCH A LOW LEVEL AND SURVEYS CONTINUING TO SHOW WEAK CONSUMER CONFIDENCE IT IS LIKELY THAT CONSUMPTION GROWTH WILL MODERATE IN THE NEAR TERM THEY SAID IN A RECENT INTERNAL MEMO ON THE US ECONOMY THE IMF EXPECTS THE ECONOMIES OF THE SEVEN MAJOR INDUSTRIALIZED COUNTRIES WHICH EXPANDED 15 IN 1992 TO GROW ONLY 11 THIS YEAR AND 23 IN 1994 BOTH THE 1993 AND 1994 PROJECTIONS ARE 06 PERCENTAGE POINT BELOW THE IMF'S APRIL ESTIMATES FOR JAPAN THE IMF IS NOW PROJECTING GROWTH OF ONLY 05 IN 1993 AND 22 NEXT YEAR COMPARED WITH ITS SPRING FORECAST OF 13 AND 36 GERMANY'S RECESSION THIS YEAR WILL BE DEEPER THAN HAD BEEN ESTIMATED PREVIOUSLY BECAUSE HIGH INTEREST RATES ARE THROTTLING DEMAND BOTH AT HOME AND ABROAD AND ARE CAUSING A LOSS OF COMPETITIVENESS THE GERMAN ECONOMY IS NOW EXPECTED TO CONTRACT BY 16 IN 1993 COMPARED WITH THE 13 DECLINE THAT WAS EXPECTED EARLIER THIS YEAR FOR 1994 THE IMF HAS SCALED BACK GERMANY'S GROWTH FORECAST TO 12 FROM 16 9309150160 930915 HEALTH EVIDENCE GROWS THAT NUTRIENTS PREVENT CANCER BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL A LARGE AND UNUSUAL MEDICAL RESEARCH STUDY CONDUCTED IN A POOR REGION OF NORTHERN CHINA STRENGTHENS THE GROWING CONVICTION THAT NUTRIENTS COMMONLY FOUND IN FRUITS VEGETABLES AND GRAINS HELP PREVENT CANCER THE FIVEYEAR STUDY SPONSORED BY THE US NATIONAL CANCER INSTITUTE FOUND THAT THE CANCER DEATH RATE WAS SIGNIFICANTLY REDUCED AMONG MIDDLEAGED PEOPLE WHOSE DAILY DIET WAS SUPPLEMENTED WITH A COMBINATION OF VITAMIN E THE MINERAL SELENIUM AND BETA CAROTENE A NUTRIENT FOUND IN FRUITS AND VEGETABLES THAT THE BODY CONVERTS TO VITAMIN A THE FINDINGS ARE VERY PROMISING SAID WILLIAM J BLOT A TOP CANCER INSTITUTE RESEARCHER WHO HELPED RUN THE STUDY THEY PRODUCE A HOPEFUL SIGN THAT VITAMINS AND MINERALS MAY PREVENT THE ONSET OF CANCER IN HEALTHY INDIVIDUALS DR BLOT WAS CAREFUL TO NOTE HOWEVER THAT THE FINDINGS AREN'T NECESSARILY APPLICABLE TO WELLNOURISHED WESTERN POPULATIONS ADDING THAT MUCH FURTHER RESEARCH MUST BE DONE BEFORE ANY DIETARY RECOMMENDATIONS CAN BE DRAWN A GROWING BODY OF RESEARCH IN RECENT YEARS HAS SUGGESTED THAT A LOWFAT DIET RICH IN FRUITS VEGETABLES AND GRAINS MAY PROTECT AGAINST CANCER IN PARTICULAR THE RESEARCH HAS SUGGESTED THAT VITAMIN E BETA CAROTENE AND SELENIUM ARE ANTIOXIDANTS THAT IS THEY APPEAR TO NEUTRALIZE DANGEROUS OXYGEN MOLECULES THAT ARISE FROM CERTAIN CHEMICAL REACTIONS IN THE BODY AND ARE INVOLVED IN A WIDE RANGE OF DISEASE MECHANISMS INCLUDING CANCER AND HEART DISEASE BECAUSE DEFINITIVE SCIENTIFIC EVIDENCE HAS BEEN LACKING TO SUPPORT THIS TANTALIZING NOTION THE CANCER INSTITUTE AND OTHER RESEARCH GROUPS HAVE UNDERTAKEN HUGE POPULATION STUDIES TRACKING THE HEALTH OF PEOPLE GIVEN A WIDE RANGE OF DIFFERENT DIETARY SUPPLEMENTS THE INSTITUTE DECIDED TO INVESTIGATE THE POTENTIAL OF DIETARY SUPPLEMENTS IN CHINA IN THE EARLY 1980S AFTER US GOVERNMENT RESEARCHERS WERE VISITED BY BING LI A CANCER RESEARCHER SHE PRODUCED MAPS OF THE GEOGRAPHIC DISTRIBUTION OF CANCER DEATHS IN CHINA SHOWING THAT THE LINXIAN REGION'S DEATH RATE FROM ESOPHAGUS AND STOMACH CANCERS WAS 10 TIMES HIGHER THAN ANYWHERE ELSE IN THE WORLD AND 100 TIMES HIGHER THAN IN THE US FURTHER STUDIES OF THE AREA MADE UP MOSTLY OF POOR FARMING COMMUNITIES FOUND THAT THE OVERALL DIET IN LINXIAN WAS LOW IN FRUITS MEATS AND FOODS THAT CONTAIN VITAMINS A B C AND E DR BLOT AND COLLEAGUES AT THE CANCER INSTITUTE IN CONCERT WITH THE CHINESE HEALTH OFFICIALS DECIDED TO INVESTIGATE WHETHER THE CANCER RATE WAS DUE TO A DEFICIENCY IN ANY OR ALL OF THE NUTRIENTS IN A STUDY PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE SCIENTISTS FOLLOWED THOUSANDS OF PEOPLE WHO TOOK DAILY VITAMIN PILLS CONTAINING A COMBINATION OF NUTRITIONAL SUPPLEMENTS AND COMPARED THEM WITH SIMILAR GROUPS OF PEOPLE GIVEN PLACEBOS OR INACTIVE PILLS AFTER FIVE YEARS THE RESEARCHERS FOUND THAT THE NUMBER OF DEATHS DUE TO CANCER OF THE ESOPHAGUS WAS REDUCED ABOUT 4 AND STOMACH CANCER DEATHS WERE REDUCED BY 21 IN THE GROUP TAKING THE ANTIOXIDANTS AS A RESULT OF STATISTICAL CALCULATIONS THE SCIENTISTS DETERMINED THAT THE ANTIOXIDANT NUTRIENTS REDUCED THE RATE FROM BOTH CANCERS BY 13 A SEPARATE STUDY IN ANOTHER AREA ALSO PUBLISHED BY THE CANCER INSTITUTE TODAY DETECTED A LOWER DEATH RATE AMONG PEOPLE TAKING THE SAME KIND OF NUTRITIONAL SUPPLEMENTS BUT THE RESEARCHERS SAID THE SMALLERSIZED POPULATION OF ABOUT 4000 PEOPLE DIDN'T PRODUCE A STATISTICALLY SIGNIFICANT RESULT WHILE RESEARCHERS AREN'T CERTAIN EXACTLY HOW ANTIOXIDANTS MAY PREVENT CANCER DR BLOT SAID THAT SINCE THE NUTRIENTS WERE GIVEN TO PEOPLE AT SUCH A LATE STAGE IN LIFE THE FINDINGS SUGGEST SOMETHING ABOUT THE NUTRIENTS PREVENTS THE FINAL STAGE OF CANCER FORMATION BUT MUCH MORE RESEARCH WILL BE NEEDED TO SHOW THAT'S TRUE 9309150158 930915 ECONOMY OPEC MAY RAISE OUTPUT CEILING IN BID TO CURB CHEATING AND AVERT PRICE CRASH BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ON THE BRINK OF AN OILPRICE CRASH MAY RAISE RATHER THAN LOWER ITS PRODUCTION CEILING TO TRY TO TIGHTEN WORLD PETROLEUM SUPPLIES AS UNLIKELY AS IT SEEMS THIS TACTIC OCCASIONALLY HAS WORKED FOR OPEC IN PREVIOUS CRISES WHAT HAPPENS IS THAT MORE REALISTIC QUOTAS FOR THE EXPORTERS CAN HELP TO CURB THEIR WIDESPREAD CHEATING WITH OPEC SCHEDULED TO MEET SEPT 25 IN GENEVA FOR AN URGENT REVIEW OF THE WEAK OIL MARKET SOME LEADING OIL MINISTERS ARE PROPOSING THAT THE PRODUCTION CEILING BE INCREASED IN A PROPOSAL ALREADY ENDORSED BY SOME OF THE 11 OTHER OIL MINISTERS ALIRIO PARRA OF VENEZUELA SUGGESTS A CEILING OF 245 MILLION BARRELS A DAY FOR THE FOURTH QUARTER THAT IS ONE MILLION BARRELS A DAY HIGHER THAN THE CURRENT WIDELY IGNORED CEILING BUT THE IDEA IS THAT IT WOULD ALLOW KUWAIT A QUOTA HIGH ENOUGH TO ENTICE IT BACK INTO THE OPEC FOLD AS WELL AS ELIMINATE SOME OF THE CHEATING BY OTHERS QUOTA CHEATING HAS PUSHED OPEC'S TOTAL OUTPUT TO A DECADE HIGH OF NEARLY 25 MILLION BARRELS A DAY AND HAS DRIVEN DOWN PETROLEUM PRICES TO A THREEYEAR LOW WITH A HIGHER MORE REALISTIC CEILING THERE COULD EVEN BE A SLIGHT REDUCTION IN OVERALL PRODUCTION BY THE 12 EXPORTERS IN THE FOURTH QUARTER COMBINED WITH THE USUAL SEASONAL UPTURN IN DEMAND THAT COULD STOP THE FALL IN PRICES AND PERHAPS EVEN CAUSE A RISE A SMALL PRODUCTION CUTBACK WOULD SOLVE THEIR PROBLEMS OVERNIGHT SAID LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION BUT IF THEY DON'T DO SOMETHING CREDIBLE THE MARKET WILL BE EXTREMELY PUNITIVE THE WORLD OIL MARKET ALREADY HAS PENALIZED OPEC FOR ITS FAILURE TO COME UP WITH A CREDIBLE PRODUCTION AGREEMENT AT THE LAST MEETING IN JUNE AFTER KUWAIT REJECTED ITS QUOTA AT THE TIME OPEC WENT AHEAD WITH A 235 MILLIONBARREL CEILING EVEN THOUGH IT WAS CLEAR THAT PRODUCTION WOULD BE MUCH HIGHER SINCE THEN EVEN AS OPEC PRODUCTION SURGED ECONOMIC MALAISE IN THE INDUSTRIAL NATIONS HAS KEPT WORLD OIL DEMAND FROM INCREASING AS ANTICIPATED THE RESULT HAS BEEN A SHARP FALL IN PETROLEUM PRICES PRICES WERE MIXED YESTERDAY BUT CRUDE OIL FOR OCTOBER DELIVERY ON THE NEW YORK MERCANTILE EXCHANGE WAS UP ONE CENT A BARREL TO SETTLE AT 1696 STILL THAT IS NEARLY 2 A BARREL LESS THAN THE OCTOBER CRUDE SOLD FOR TWO WEEKS AGO ALSO THE AVERAGE OF A BASKET OF SEVEN CRUDES USED AS THE OPEC PRICING REFERENCE FELL FRIDAY TO 1471 A BARREL THAT IS SHARPLY BELOW THE 21 TARGET AND ALSO LESS THAN THE LEVEL OF 15 A BARREL THAT USUALLY TRIGGERS SERIOUS ACTION BY OPEC ANOTHER FACTOR THAT INCREASES THE LIKELIHOOD OF OPEC PRODUCTION COMING INTO BETTER BALANCE IN THE FOURTH QUARTER IS THE EXPECTED INCREASE IN DEMAND ACCORDING TO OPEC'S VIENNA HEADQUARTERS DEMAND FOR OIL FROM OPEC AND WORLD INVENTORIES IS NOW PROJECTED AT 26 MILLION BARRELS A DAY FOR THE LAST THREE MONTHS OF THE YEAR THAT IS SHARPLY HIGHER THAN THE 247 MILLION BARRELS A DAY OPEC IS ESTIMATED TO HAVE PRODUCED IN AUGUST WORLD OIL INVENTORIES USUALLY ARE DRAWN DOWN IN THE FOURTH QUARTER THIS YEAR FOURTHQUARTER WITHDRAWALS GENERALLY ARE EXPECTED TO AVERAGE BETWEEN 600000 AND 700000 BARRELS A DAY AFTER ALLOWING FOR SUCH AN INVENTORY DRAWDOWN WILLIAM BROWN III PRESIDENT OF OIL CONSULTING FIRM WH BROWN & CO PREDICTS A FOURTHQUARTER CALL ON OPEC OIL OF 249 MILLION BARRELS A DAY STILL HE SAID THE OIL MINISTERS FACE A VERY DIFFICULT MEETING IN TRYING TO AGREE ON WHAT IS IN EFFECT A REALLOCATION OF MARKET SHARES THERE IS ALSO SKEPTICISM AMONG OTHER OIL ANALYSTS THAT OPEC CAN BRING KUWAIT BACK INTO THE FOLD KEEP THE QUOTA OF SAUDI ARABIA AT EIGHT MILLION BARRELS A DAY AND STILL SATISFY SUCH CHRONIC OVERPRODUCERS AS IRAN AND KUWAIT AND OVERSHADOWING IT ALL IS IRAQ STILL BANNED BY THE UNITED NATIONS FROM EXPORTING OIL INDICATIONS ARE THAT THERE WON'T BE ANY IRAQI OIL SALES FOR AT LEAST SIX MONTHS BUT ONCE IRAQI OIL BEGINS FLOWING AGAIN IT WILL MAKE OPEC'S LIFE VERY DIFFICULT IN MAINTAINING STABLE PRICES SAID WILLIAM RANDOL AN INTERNATIONAL OIL ANALYST WITH SALOMON BROTHERS 9309150156 930915 COMMODITIES COTTON PRICES FALL ON FEARS OF DECLINING DEMAND FROM OVERSEAS IMPROVED PROSPECTS FOR US CROP BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COTTON FUTURES PRICES SLIPPED ON FEARS OF DIMINISHING FOREIGN DEMAND FOR US COTTON AND IMPROVING PROSPECTS FOR THE PREVIOUSLY WATERLOGGED US CROP AT NEW YORK'S COTTON EXCHANGE COTTON FOR DECEMBER DELIVERY WAS DOWN ONE CENT TO 583 CENTS A POUND AFTER TRADING LAST THURSDAY THE US AGRICULTURE DEPARTMENT RELEASED A REPORT PROJECTING STRONG OVERSEAS DEMAND FOR COTTON THE UNEXPECTEDLY HIGHEXPORT NUMBERS IN THE REPORT PROMPTED COTTON FUTURES TRADERS TO BID THE DECEMBER CONTRACT UP THE DAILY LIMIT OF TWO CENTS ON FRIDAY AT THESE HIGHER PRICES HOWEVER FEW FOREIGN BUYERS STEPPED UP TO BUY US COTTON ON MONDAY BASICALLY LAST WEEK'S PRICE INCREASE MADE OUR COTTON UNCOMPETITIVE SAID SANDRA KAUL COTTON ANALYST FOR SMITH BARNEY SHEARSON DRENCHING RAINS IN COTTONGROWING REGIONS OF TEXAS AND THE SOUTHCENTRAL US HAVE STUNTED THE CROP THERE AND SUPPORTED FUTURES PRICES FOR WEEKS BUT AFTER TRADING ON MONDAY THE USDA RELEASED A WEEKLY CROPCONDITION REPORT THAT SHOWED IMPROVEMENTS IN THESE SATURATED AREAS THE REPORT SAID 54 OF THE NATION'S COTTON CROP IS IN GOOD OR BETTER CONDITION UP FROM 50 LAST WEEK THE COTTON MARKET ALSO FOCUSED YESTERDAY ON THE LACK OF PROGRESS IN NEGOTIATIONS BETWEEN THE CLINTON ADMINISTRATION AND CHINA ABOUT TERMS UNDER WHICH THE US WOULD GRANT MOSTFAVOREDNATION STATUS TO THE ASIAN COUNTRY CHINA IS TRADITIONALLY A LARGE BUYER OF US COTTON BUT SOME TRADERS BELIEVE THAT FOR VARIOUS REASONS IT MAY IMPORT LESS OF THE FABRIC THIS YEAR CHINA'S REFUSAL ON MONDAY TO TAKE DELIVERY OF US WHEAT SPURRED FEARS THAT IT MIGHT ALSO BALK AT BUYING RELATIVELY HIGHPRICED US COTTON SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THEY SAID THEY DIDN'T WANT TO ACCEPT SUBSIDIZED US WHEAT BECAUSE OF POSSIBLE CONTAMINATION BUT THERE'S SOME THINKING THAT THE REAL REASON IS THAT THEY JUST DIDN'T WANT IT MR O'NEILL SAID ALSO TUGGING COTTON FUTURES PRICES LOWER YESTERDAY WAS HEAVY SELLING OF FUTURES CONTRACTS BY COTTON GROWERS WHO WERE USING THE CONTRACTS TO LOCK IN SALES OF THIS YEAR'S CROP AT PRICES THEY THINK ARE FAVORABLE IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SLIPPED AS SOME METEOROLOGISTS CITED REDUCED CHANCES FOR WIDESPREAD FROST ACROSS THE UPPER MIDWEST THIS WEEK FROST SPECULATION LIFTED PRICES MONDAY BECAUSE FREEZING TEMPERATURES WOULD END THE GROWING SEASON SEVERAL WEEKS BEFORE MANY FIELDS REACH MATURITY IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR SEPTEMBER DELIVERY DROPPED 15 CENTS A BUSHEL TO SETTLE AT 229 A BUSHEL THE SEPTEMBER SOYBEAN CONTRACT SLIPPED 775 CENTS A BUSHEL TO SETTLE AT 63075 A BUSHEL THE PRICE DECLINES WERE RESTRAINED IN PART BY REPORTS THAT RUSSIA IS CONTINUING TO ACQUIRE US CROPS WITH A FOODAID PACKAGE MOSCOW REPORTEDLY BOUGHT 505000 METRIC TONS OF CORN MONDAY AND IS TENDERING FOR 120000 METRIC TONS OF SOYBEAN MEAL RUSSIA MUST RELY ON US FOOD AID TO ACQUIRE US CROPS BECAUSE ITS CREDIT RECORD IS POOR ACCORDING TO US AGRICULTURE DEPARTMENT OFFICIALS RUSSIA HAS MISSED 11 BILLION IN PAYMENTS ON GRAINBUYING LOANS THAT WERE ARRANGED BY IT AND THE FORMER SOVIET UNION THE AGRICULTURE DEPARTMENT HAS COMPENSATED INTERNATIONAL BANKS FOR NEARLY ALL OF THE PAYMENTS MISSED BY MOSCOW SO FAR THE LOANS WERE ARRANGED UNDER AN AGRICULTURE DEPARTMENT CREDITGUARANTEE PROGRAM ENERGY CRUDEOIL PRICES FINISHED TRADING ALMOST UNCHANGED WHILE HEATINGOIL PRICES ROSE AND GASOLINE PRICES FELL ACTION WAS FOCUSED ON TRADING OF OIL PRODUCTS WITH MARKET PARTICIPANTS SELLING GASOLINE AND BUYING HEATING OIL REALIZATION THAT THE SUMMER DRIVING SEASON IS ENDING AND THAT FRIGID WEATHER IS AROUND THE CORNER DROVE TRADERS THERE WAS LITTLE NEWS TO MOVE THE MARKET TRADERS SAID THEY WERE TRYING TO SQUARE POSITIONS AHEAD OF THE MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ON SEPT 25 MANY OF THEM HAVE DECIDED TO STAY OUT OF THE TRADING ARENA UNTIL SOME DIRECTION FROM OPEC BECOMES APPARENT 9309150155 930915 LETTERS TO THE EDITOR RENT CONTROL AS A CIVIC RELIGION JOHN GILDERBLOOM SEEMS TO MISUNDERSTAND SOME FUNDAMENTALS OF ECONOMICS PROPERTY RIGHTS RISK AND INCENTIVE IN HIS ARTICLE PRAISING THE MERITS OF RENT CONTROL IN SANTA MONICA COUNTERPOINT A NEW LEASE ON LIFE FOR RENT CONTROL AUG 19 HE DOES CORRECTLY OBSERVE THE REDISTRIBUTIVE FUNCTION OF THESE RENT REGULATIONS AND NOTES THAT SANTA MONICA RENTERS WILL ENJOY A SAVINGS OF CLOSE TO 11 BILLION OVER 10 YEARS YES 11 BILLION THAT SHOULD BELONG TO THE PEOPLE WHO HAD THE FORESIGHT TO MAKE THE INVESTMENT IN RENTAL PROPERTY MADE THE SACRIFICES FOR A DOWN PAYMENT AND PUT UP WITH ALL THE HASSLES OF MANAGING AN APARTMENT BUILDING OVER THE YEARS NOW THAT INTEREST RATES FOR MORTGAGES HAVE GONE DOWN MR GILDERBLOOM STATES THAT LANDLORDS SHOULD SHARE THEIR MORTGAGE COST SAVINGS WITH TENANTS WHY WHEN MORTGAGE RATES WERE SKY HIGH THE SANTA MONICA RENT CONTROL BOARD DID NOT ALLOW LANDLORDS TO RAISE RENTS TO COMPENSATE THEM FOR THEIR HIGH COSTS MR GILDERBLOOM SAYS THAT PRESSURE FOR HIGHER RENTS IS DUE TO THE HIGH PRICE OF PURCHASING HOMES IT IS ALSO DUE TO THE FACT THAT NO ONE IS BUILDING APARTMENT BUILDINGS IN SANTA MONICA ANOTHER FACT THAT MR GILDERBLOOM DOESN'T MENTION IS THAT APARTMENT UNITS BY THE THOUSANDS ARE BEING TAKEN OFF THE MARKET BY DISCOURAGED LANDLORDS AND CONVERTED TO CONDOS THE PRICE OF WHICH FORTUNATELY IS NOT YET SUBJECT TO GOVERNMENT CONTROL AMAZINGLY AFTER TRASHING THE PROPERTY RIGHTS OF LANDLORDS MR GILDERBLOOM FINISHES HIS ARTICLE STATING THAT THE SOLUTION TO HIGH RENT PRESSURE IS MORE HOME OWNERSHIP WHY WOULD A RENTER WANT TO BECOME AN OWNER IN A CITY THAT TREATS PROPERTY RIGHTS WITH CONTEMPT WHY WOULD ANY RENTER CHOOSE TO PURCHASE THAT WHICH HE EFFECTIVELY CONTROLS WITH NO INVESTMENT NONETHELESS MR GILDERBLOOM CITES AS HIS MODEL OF THE WAY THINGS OUGHT TO BE THE HOUSING MARKET IN LOUISVILLE KY WHERE HOME PRICES ARE A TENTH OF WHAT THEY ARE IN SANTA MONICA THIS HE ATTRIBUTES TO THE CONCERTED EFFORT OF CITY LEADERS TO PRODUCE AND RENOVATE LOW COST HOUSING ANOTHER REASON MAY BE THAT A LOT FEWER PEOPLE WANT TO LIVE IN LOUISVILLE WHICH I'M SURE IS A FINE TOWN THAN SANTA MONICA THE BIZARRE RESULT OF RENT CONTROL IN SANTA MONICA IS ILLUSTRATED BY THE BEHAVIOR OF A CLOSE ACQUAINTANCE OF MINE WHO HAS A COZY ONEBEDROOM APARTMENT TWO BLOCKS FROM ONE OF THE MOST BEAUTIFUL BEACHES IN THE WORLD FOR WHICH SHE PAYS 425 A MONTH NOT THAT SHE LIVES THERE ANYMORE SHE LIVES ON THE EAST COAST BUT AS SHE SAYS FOR THAT KIND OF RENT SHE'D BE CRAZY TO GIVE IT UP SO IT SITS THERE EMPTY MOST OF THE YEAR EVEN THOUGH THERE ARE PLENTY OF PEOPLE WHO WOULD HAPPILY PAY 50 MORE AND CONSIDER THEMSELVES LUCKY THEY ARE NOT ALLOWED TO COMPETE IN THE MARKETPLACE TO RENT THIS APARTMENT THE VICTIM IN ALL THIS IS THE RETIRED ELDERLY WOMAN WHO OWNS THE BUILDING AND LIVES IN ONE OF THE UNITS SHE HAS BEEN PROHIBITED FROM REALIZING THE TRUE VALUE OF ALL THE SACRIFICE WORK AND STRESS IT TOOK HER TO PURCHASE AND MANAGE THE BUILDING MR GILDERBLOOM'S DEFENSE OF RENT CONTROL IS SURE TO STRIKE A DISSONANT CHORD WITH MANY OF YOUR READERS THE VERY NOTION OF CONTROL IS ANATHEMA TO THEIR RESPECTIVE VISIONS OF MORAL RIGHT AND LIBERTY NEVERTHELESS MR GILDERBLOOM'S PIECE WAS RIGHT ON THE MARK RENT CONTROL IS A USEFUL AND INCREASINGLY NECESSARY MEANS OF PROVIDING HOUSING STABILITY AND AFFORDABILITY THOSE WHO OBJECT THE LOUDEST TO RENT CONTROL ARE USUALLY QUITE SELECTIVE IN THEIR CRITICISM OF ECONOMIC REGULATION THEY DON'T RESIST ALL FORMS OF CONTROL ONLY THOSE THAT BENEFIT TENANTS INSTEAD OF OWNERS THEY WOULD BE THE FIRST TO COMPLAIN SHOULD THE GOVERNMENT RECONSIDER FAVORABLE REGULATIONS SUCH AS ZONING AND MORTGAGE TAX SUBSIDIES THESE CONTROLS ARE ACCEPTABLE BECAUSE THEY ENHANCE THE VALUE OF LAND OFTEN AT THE EXPENSE OF TAXPAYERS AND TENANTS RENT CONTROL ON THE OTHER HAND IS BAD POLICY AND THEREFORE UNCONSTITUTIONAL BECAUSE IT DEVALUES PROPERTY TRANSFERRING FROM A AND GIVING TO B SOCIALISM FOR THE RICH IS OK SOCIALISM FOR THE POOR IS WELL SOCIALISM UNFORTUNATELY HOUSING IS NOT A RIGHT IN AMERICA IT IS A PRIVILEGE AVAILABLE ONLY TO THOSE WHO CAN AFFORD IT AS A RESULT AFFORDABLE HOUSING POLICIES ON THE STATE AND NATIONAL LEVEL ARE A DISGRACE FOR INSTANCE TAX ASSISTANCE GOES TO UPPER AND MIDDLECLASS OWNERS BUT NOT TO RENTERS STATE PROPERTY LAWS ENCOURAGE CONVERSION OF AFFORDABLE APARTMENTS INTO UNAFFORDABLE CONDOMINIUMS STATES ERECT POLITICAL AND FINANCIAL OBSTACLES IN THE WAY OF PUBLIC HOUSING AND SO ON THE RESULTS CAN BE DESCRIBED IN ANTISEPTIC TERMS SUCH AS THE EVERINCREASING SHARE OF LOWINCOME HOUSEHOLD DISPOSABLE INCOME GOING TO RENT WITH LESS AVAILABLE FOR OTHER LIFE NECESSITIES OR IT CAN BE DESCRIBED IN MORE GRAPHIC TERMS SUCH AS THE GROWING HOMELESS POPULATION ON OUR CITIES' STREETS LET'S FACE IT THE POOR AND RENTERS HAVE NOT FARED ALL THAT WELL IN THE ECONOMIC STRUGGLE WE CALL DEMOCRACY THUS MOANS OF UNFAIRNESS BY THE LANDED AGAINST THE LANDLESS ARE NOT VERY CREDIBLE TO BE SURE MANY BENEFICIARIES OF RENT CONTROL DON'T NEED IT THERE ARE SOME WEALTHY TENANTS IN CONTROLLED UNITS THIS IS AN UNFORTUNATE CONSEQUENCE OF ALL PRICE CONTROL THE FREE MARKET MAY BE MORE EFFICIENT BUT THAT ALONE DOESN'T MAKE IT EITHER JUST OR SOUND POLICY STILL I WOULD TRADE RENT CONTROL IN AN INSTANT FOR REAL HOUSING REFORM WE CAN START HERE 1 TAX HOUSING PROFITS RENTS AND APPRECIATION TO PROVIDE FUNDS FOR LOWINCOME HOUSING 2 REPEAL PROPERTY TAX LIMITING MEASURES EG PROP 13 AND PUBLIC HOUSING PRECLUSION LAWS SO AS TO FACILITATE MUNICIPAL HOUSING EFFORTS 3 STOP THE TAX SUBSIDY TO THE RICH AND MIDDLECLASS AND GIVE IT INSTEAD TO THE POOR A LITTLE TRICKLEUP ECONOMICS WOULD WORK WONDERS 4 REPEAL EXCLUSIONARY ZONING LAWS THAT SUPPRESS THE SUPPLY OF MULTIFAMILY IE RENTAL UNITS 5 MODERNIZE LANDLORDTENANT LAW SO AS TO REMOVE THE SUBSTANTIAL BUT ANACHRONISTIC ADVANTAGE OWNERS HAVE OVER TENANTS IN THE AREAS OF JUDICIAL PROCEDURE AND REMEDIES 6 REVERSE GOVERNMENTAL POLICIES THAT ENCOURAGE RENTAL HOUSING DESTRUCTION EG CONDOMINIUM CONVERSION AND 7 ADOPT A NATIONAL VISION OF DECENT AND AFFORDABLE HOUSING FOR ALL IT'S NICE TO SEE THAT JOHN GILDERBLOOM HAS GIVEN UP ON NEW YORK CITY AS A RENTCONTROLLED UTOPIA ALTHOUGH I WISH HE WOULD TELL THIS TO A FEW NEW YORK POLITICIANS BUT HIS CHOICE OF SANTA MONICA AS THE NEW RENTCONTROL MECCA IS TRULY ASTOUNDING SANTA MONICA IN CASE MR GILDERBLOOM HASN'T HEARD IS COMMONLY CALLED THE HOMELESS CAPITAL OF THE WEST COAST SO MANY STREET PEOPLE AND BEACHSLEEPERS NOW CLOG THE STREETS THAT EVEN THE CITY'S RENOWNED RADICALLIBERAL RESIDENTS HAVE TURNED NEGATIVE ON THE ISSUE WHY SO MANY HOMELESS IN SANTA MONICA ONE OBVIOUS ANSWER IS THAT BECAUSE OF RENT CONTROL IT'S IMPOSSIBLE FOR ANYONE TO FIND AN APARTMENT EVEN MARK KANN WHO WROTE FLATTERINGLY ABOUT RENT CONTROL IN MIDDLE CLASS RADICALISM IN SANTA MONICA WAS FORCED TO ADMIT I KNOW ONE PROFESSIONAL WOMAN WHO TRIED TO GET A SANTA MONICA APARTMENT FOR MORE THAN A YEAR WITHOUT SUCCESS BUT SHE BROKE INTO THE CITY FINALLY BY MARRYING SOMEONE WHO ALREADY HAD AN APARTMENT THERE SURE TENANTS IN RENT CONTROLLED APARTMENTS STAY TWICE AS LONG AS TENANTS WITHOUT RENT CONTROL IN NEW YORK THEY OFTEN HANG ON THEIR WHOLE LIVES AND THEN PASS THEIR APARTMENTS ON TO THEIR GRANDCHILDREN NOBODY EVER ARGUED THAT RENT CONTROL DOESN'T CREATE A BONANZA FOR SOME PEOPLE IT'S THE PEOPLE WHO DON'T GET RENT CONTROLLED APARTMENTS WHO SUFFER THEY FACE A LOCKEDUP SUPPLY DIMINISHING NEW CONSTRUCTIONIN OTHER WORDS A GENERAL HOUSING SHORTAGE IN CITIES SUCH AS NEW YORK AND SANTA MONICA WHERE RENT CONTROL IS A KIND OF CIVIC RELIGION THIS HOUSING SHORTAGE HAS TRANSLATED INTO A PERMANENT OUTSIZED HOMELESS POPULATION MR GILDERBLOOM TRUMPETS FAIRNESS BUT I SEE THE OLD STORY OF ECONOMIC LIBERTY BEING STIFLED FOR THE BENEFIT OF THE COMFORTABLE AT THE EXPENSE OF THE STRIVING THE CLINTON ADMINISTRATION MIGHT INDEED GIVE HIS VIEWS A NEW LEASE IT WOULD DO BETTER HOWEVER TO HEED THE WORDS OF PRESIDENTIAL ECONOMIC ADVISOR AND PRINCETON ECONOMIST ALAN BLINDER ECONOMISTS WHETHER LIBERAL OR CONSERVATIVE OPPOSE RENT CONTROLS NOT BECAUSE THEY ARE FOND OF LANDLORDS BUT BECAUSE THEY BELIEVE THAT CONTROLS IMPAIR BOTH ECONOMIC EFFICIENCY AND SOCIAL EQUITY MORE THAN THAT THEY BELIEVE THAT RENT CONTROL IS A SURE WAY TO RUIN A CITY 9309150154 930915 AMERICAN AIR WILL LAY OFF 5000 WORKERS COMPANY PLANS TO GROUND 19 MORE JETS TO REMAIN A VIABLE' COMPETITOR BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN AIRLINES SAID IT WILL LAY OFF 5000 WORKERS OVER THE NEXT YEAR AND GROUND 19 MORE JETS THAN ORIGINALLY PLANNED IT IS CLEAR TO US THAT LABOR COSTS MUST COME DOWN IF WE ARE TO BE A VIABLE LONGTERM AIRLINE COMPETITOR SAID AMR CHAIRMAN ROBERT L CRANDALL IN A SPEECH TO WALL STREET ANALYSTS IN NEW YORK YESTERDAY IN HIS CLEAREST INVITATION YET TO THE AMR CORP UNIT'S UNIONS TO DISCUSS METHODS OF CUTTING LABOR COSTS MR CRANDALL SAID HE WOULD WELCOME AN EMPLOYEE STAKE IN THE COMPANY IN RETURN FOR CONCESSIONS AND SAID HE HOPED TO PERSUADE EMPLOYEES THAT LABORCOST REDUCTIONS ARE IN THEIR OWN LONGTERM INTEREST AMERICAN ISN'T ALONE IN TRYING TO CUT ITS LABOR COSTS IN THE FACE OF A THREEYEAR INDUSTRY SLUMP OVER THE PAST SEVERAL MONTHS EMPLOYEES HAVE PROPOSED BUYING A MAJORITY STAKE IN UAL CORP'S UNITED AIRLINES DELTA AIR LINES HAS UNILATERALLY CUT WAGES OF ITS NONUNION WORKERS AND BOTH NORTHWEST AIRLINES AND TRANS WORLD AIRLINES HAVE GIVEN UP EQUITY STAKES FOR PAY CUTS OR PRODUCTIVITY GAINS LIKE ITS RIVALS AMERICAN IS GETTING SQUEEZED AS STARTUP NONUNION CARRIERS STEAL SOME TRAFFIC AND SOUTHWEST AIRLINES PUSHES INTO NEW FERTILE TERRITORY WITH ITS LOWFARE APPROACH THE REALITY IS THAT THE MARKET IS TELLING ALL THE TRADITIONAL AIRLINES THAT THEY MUST COMPETE IN A LOWCOST LOWPRICE WORLD MR CRANDALL SAID LATER HE SAID THAT AMERICAN COULD DO WITHOUT 2300 OF ITS 11000 PILOTS IF THEY FLEW AS MANY HOURS AS SOUTHWEST PILOTS DO SPECIFICALLY MR CRANDALL SAID AMERICAN PLANNED TO ADD 11 DC10S TO THE 31 WIDEBODY MCDONNELL DOUGLAS CO JETS ALREADY BEING ELIMINATED FROM THE FLEET EARLY OF THE 11 FOUR WILL BE RETIRED NEXT YEAR AND THE REST IN 1996 AND 1997 AMERICAN WILL LIKEWISE MOVE UP THE RETIREMENT OF EIGHT NARROWBODY BOEING CO 727S TO NEXT YEAR FROM 1995 THE CUTS WILL REDUCE AMERICAN'S CAPACITY NEXT YEAR BY 45 AND REQUIRE JOB CUTS FOR MANY OF THE WORKERS WHO WORK ON OR SERVICE THOSE PLANES MR CRANDALL DIDN'T SPECIFY HOW MANY WORKERS FROM WHICH LABOR GROUPS WOULD BE LAID OFF BUT THE COMPANY WARNED TWO WEEKS AGO THAT IT WAS LOOKING AT CUTTING 650 MANAGEMENT AND SUPPORT JOBS WORD OF AMERICAN'S CUTS DIDN'T SIGNIFICANTLY AFFECT ITS STOCK PRICE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMR'S SHARES FELL ONLY 375 CENTS TO 64375 A SPOKESMAN SAID AMR DOESN'T EXPECT A SIGNIFICANT WRITEOFF BECAUSE OF THE AIRPLANE RETIREMENTS AS MOST OF THE 19 ARE BEING RETURNED TO THEIR ORIGINAL OWNERS OR LESSORS IN THE SECOND QUARTER AMR TOOK A CHARGE OF 79 MILLION OR 104 PER SHARE BECAUSE OF THE RETIREMENT OF THE 31 DC10S AS FOR THE LAYOFFS THE OVERALL CUT OF 5000 WILL COME OVER THE NEXT YEAR AND WILL INCLUDE 400 PILOT FURLOUGHS AND SEVERAL HUNDRED JOBS TO BE CUT FROM MANAGEMENT RANKS CUTS THAT HAD BEEN PREVIOUSLY ANNOUNCED AMERICAN SPENT 109 BILLION IN LABOR COSTS FOR THE FIRST QUARTER OF 1993 ACCORDING TO DEPARTMENT OF TRANSPORTATION STATISTICS OR 3144 OF ITS OPERATING EXPENSES AMERICAN IS IN THE MIDDLE OF THE PACK OF MAJOR AIRLINES IN ITS SPENDING ON LABOR USAIR GROUP INC HAS THE HIGHEST COSTS AND CONTINENTAL AIRLINES THE LOWEST GETTING EMPLOYEES TO ACCEPT CUTS WILL BE A TOUGH CAMPAIGN FOR AMERICAN WHICH IS CURRENTLY IN RANCOROUS TALKS ON A NEW CONTRACT FOR ITS 21000 FLIGHT ATTENDANTS AND WHOSE PILOTS HAVE DUBBED AMERICAN'S TRANSITION PLAN TO WITHDRAW FROM UNPROFITABLE MARKETS AND BEEF UP NONAIRLINE DIVISIONS A FLOP THE PILOTS ARE EQUALLY SKEPTICAL OF MR CRANDALL'S PUSH TO CUT LABOR COSTS CONCESSIONS WILL NOT SOLVE HOW TO LEVEL AMERICAN IN THE SHORT RUN SAID RICH LAVOY PRESIDENT OF THE ALLIED PILOTS ASSOCIATION IN THEIR OWN MEETING WITH ANALYSTS MONDAY THE PILOTS GROUP SAID AMERICAN CAN ACHIEVE THE SAVINGS IT NEEDS THROUGH REWORKING ITS OPERATIONS TO MAKE THEM MORE EFFICIENT THAT WOULD INCLUDE SUCH CHANGES AS REDUCING THE NUMBER OF DIFFERENT KINDS OF PLANES IN ITS FLEET A SPOKESMAN FOR THE FLIGHT ATTENDANTS DISMISSED MR CRANDALL'S REMARKS AS JUST ONE MORE TRANSPARENT ATTEMPT AT USING THE MEDIA TO FRIGHTEN FLIGHT ATTENDANTS INTO ACCEPTING CONCESSIONS 9309150153 930915 BUSINESS BRIEF INDEPENDENT AUDITOR RESIGNS FROM FUTURE COMMUNICATIONS INC DALLAS THE INDEPENDENT AUDITOR FOR FUTURE COMMUNICATIONS INC RESIGNED CITING THE COMPANY'S REFUSAL TO PERMIT QUARTERLY REVIEWS OF ITS MATERIAL TRANSACTIONS AND FINANCIAL FILINGS IN A LETTER TO THE CABLETELEVISION CONCERN MARK B ALEGNANI PRESIDENT OF ALEGNANI & CO SAID THE DALLAS ACCOUNTING FIRM DECIDED TO DISCONTINUE OUR RELATIONSHIP WITH FUTURE AND ITS STONE GRILL INTERNATIONAL INC UNIT THE LETTER CITED THE COMPANY'S REFUSAL TO COOPERATE IN THE QUARTERLY REVIEWS AS ONE OF MANY FACTORS IN THE AUDITING FIRM'S DECISION NEITHER MR ALEGNANI NOR SERGIO BOSCO FUTURE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RETURNED TELEPHONE CALLS TRADING IN FUTURE COMMUNICATIONS STOCK WAS HALTED RECENTLY AS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS BEGAN REVIEWING WHETHER IT MEETS LISTING QUALIFICATIONS AND ITS ACCOUNTING PRACTICES REPORTEDLY ARE BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY HAS HIRED SECURITIES LAWYER HARVEY PITT A PARTNER IN FRIED FRANK HARRIS SHRIVER & JACOBSON PEOPLE CLOSE TO THE COMPANY SAID MR PITT WOULDN'T COMMENT ON THE AUDITOR'S RESIGNATION OR ON HIS ASSIGNMENT AT FUTURE A FORMER SEC GENERAL COUNSEL MR PITT HAS REPRESENTED NUMEROUS SCANDALTINGED COMPANIES AND WALL STREET FIGURES INCLUDING IVAN BOESKY A MAJOR FIGURE IN THE INSIDERTRADING SCANDALS OF THE 1980S ALLEGATIONS BEGAN SWIRLING AROUND FUTURE LAST MONTH AFTER ITS STOCK PRICE SOARED TO A HIGH OF 2750 A SHARE FROM 650 A SHARE IN JUNE THE NASD HALTED TRADING IN THE COMPANY'S STOCK AUG 31 9309150152 930915 TECHNOLOGY & HEALTH BREAST CANCER STUDY CITES LIFESTYLE RISK BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL PROFESSIONAL WOMEN WHO DELAY CHILDBIRTH DURING EDUCATION AND CAREERBUILDING OR WHO REMAIN CHILDLESS MAY SUFFER A 50 TO 100 GREATERTHANEXPECTED RISK OF DYING FROM BREAST CANCER THE CENTERS FOR DISEASE CONTROL AND PREVENTION REPORTED IN A SURVEY OF 29 MILLION WOMEN WHO DIED DURING THE YEARS 1979 TO 1987 THE CDC'S NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY AND HEALTH FOUND MUCH HIGHERTHANEXPECTED BREAST CANCER MORTALITY AMONG EXECUTIVES PROFESSIONALS AND ADMINISTRATIVE WORKERS RATES THAT COULDN'T BE EXPLAINED BY ANY COMMON WORKPLACE EXPOSURE IT IS MOST LIKELY THAT OCCUPATIONAL CHOICES AND ACCOMPANYING LIFESTYLES REFLECT SOME OF THE ESTABLISHED OR HYPOTHESIZED RISK FACTORS FOR BREAST CANCER THE REPORT SAYS THESE KNOWN OR SUSPECTED RISKS INCLUDE CHILDLESSNESS AND HAVING A FIRST CHILD AFTER AGE 30 FOR EXAMPLE THE REPORT STATES THAT AMONG WHITE WOMEN THE BREAST CANCER MORTALITY RATES FOR CLERGYWOMEN LIBRARIANS AND TEACHERS WERE 50 HIGHER THAN FOR ALL WHITE WOMEN AT LARGE BLACK TEACHERS HAD DOUBLE THE RISK OF BREAST CANCER DEATH THAN OTHER WOMEN OF THEIR ETHNIC GROUP CENSUS FIGURES IN 1988 SHOWED THAT AMONG WOMEN WITH FIVE OR MORE YEARS OF COLLEGE 36 OF BIRTHS OCCURRING AT AGES 30 TO 44 WERE FIRST BIRTHS AMONG WOMEN WITH A HIGH SCHOOL EDUCATION ONLY 16 OF BIRTHS AT AGES 30 TO 44 WERE FIRST BIRTHS NEARLY A THIRD OF FEMALE MANAGERS AND PROFESSIONALS GIVING BIRTH AT AGES 30 TO 44 WERE HAVING THEIR FIRST CHILD IN SHARP CONTRAST ONLY ABOUT A FIFTH OF WOMEN IN THE SERVICE OCCUPATIONS WHO GAVE BIRTH AT THAT AGE WERE HAVING THEIR FIRST CHILD DOCTORS DON'T FULLY UNDERSTAND THE PROTECTIVE EFFECTS OF EARLY CHILDBIRTH ON WOMEN'S BREAST HEALTH HOWEVER THE RISKS OF REMAINING CHILDLESS HAVE CROPPED UP IN THE MEDICAL LITERATURE SINCE THE 18TH AND 19TH CENTURIES WHEN SCHOLARS NOTED AN EXCESS OF BREAST CANCER AMONG ITALIAN NUNS WHOSE PROFESSION ENFORCED CELIBACY THE REPORT BY CAROL H RUBIN AND PAUL J SELIGMAN OF THE NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY AND HEALTH PUBLISHED IN THE AMERICAN JOURNAL OF PUBLIC HEALTH SAYS OCCUPATIONAL PATTERNS OF BREAST CANCER RISK GIVE DOCTORS A CHANCE TO BETTER TARGET BREAST CANCER SCREENING AND PREVENTION INFORMATION THE NATIONAL CANCER INSTITUTE BREAST CANCER SCREENING CONSORTIUM PUBLISHED GUIDELINES RECOMMENDING MAMMOGRAMS EVERY ONE TO TWO YEARS FOR WOMEN AGED 40 TO 49 AND EVERY YEAR FOR WOMEN AGED 50 AND OLDER MORE SENSITIVE IS THE QUESTION OF HOW PUBLIC HEALTH POLICY SHOULD ADDRESS THE HEALTH IMPLICATIONS OF HAVING A GROWING NUMBER OF WOMEN IN THE WORK FORCE AND WIDENING RIPPLE EFFECTS ON BIRTHRATE AND MATERNAL AGE I DON'T THINK WE CAN CHANGE THE DEMOGRAPHIC RISK FACTORS HERE SAID SAMUEL BRODER DIRECTOR OF THE NATIONAL CANCER INSTITUTE WOMEN HAVE COME TOO FAR AS INDEPENDENT AND PRODUCTIVE MEMBERS OF SOCIETY OUR JOB IS TO ACCOMMODATE WOMEN AS THEY EXIST IN THE REAL WORLD TODAY THIS IS A SCIENCE ISSUE AND THERE ARE NO SIMPLE ANSWERS EXCEPT TO REAFFIRM OUR COMMITMENT TO BASIC RESEARCH THE TAKEHOME MESSAGE IS THAT WE NEED TO DO MORE SCIENCE TO BRING ABOUT TRUE PREVENTION AND TRUE CURES DR BRODER SAID WHAT WE KNOW FOR SURE IS THAT REGULAR MAMMOGRAPHY OVER AGE OF 50 CAN REDUCE THE DEATH RATE BY APPROXIMATELY A THIRD 9309150151 930915 ENTERPRISE GOVERNMENT WATCH SMALL FIRMS WIN ORDER AGAINST SOME PSE&G SERVICES BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL STOP STEALING CUSTOMERS FROM SMALL FIRMS AN OFFICIAL TELLS A UTILITY SMALL CONTRACTORS HAVE LONG CRIED FOUL ABOUT ALLEGEDLY UNFAIR COMPETITION FROM BIG UTILITIES THEY CONTEND REVENUEHUNGRY POWER COMPANIES OFFER TO INSTALL INSPECT AND REPAIR FURNACES AIR CONDITIONERS AND OTHER APPLIANCES FOR FREE OR AT CUTRATE PRICES CONTRACTORS CONTEND UTILITIES CAN AFFORD TO DO THIS BECAUSE THEY SUBSIDIZE THE SERVICES WITH REVENUE PAID BY ALL CUSTOMERS NOW IN A CASE WITH WIDESPREAD IMPLICATIONS A NEW JERSEY ADMINISTRATIVE LAW JUDGE HAS TOLD PUBLIC SERVICE ELECTRIC & GAS CO TO HALT MOST SUCH PRACTICES LOUIS MCAFOOS SAID PSE&G A PUBLIC SERVICE ENTERPRISE GROUP INC UNIT MAY STILL PROVIDE A FEW SAFETYRELATED SERVICES FOR FREE BUT HE RULED THAT THE BIG UTILITY MUST CHARGE COMPETITIVE HOURLY RATES FOR 21 OTHER FREE OR LOWCOST SERVICES FROM ADJUSTING FAN BELTS TO INSPECTING GAS FURNACES HE ORDERED THE CONCERN TO STOP DISTRIBUTING BILL INSERTS PROMOTING ITS INHERENTLY COMPETITIVE SERVICES THE NEW JERSEY BOARD OF REGULATORY COMMISSIONERS WHICH FRIDAY REVIEWED MR MCAFOOS' RECOMMENDATIONS IS EXPECTED TO ANNOUNCE ITS DECISION OCT 13 THE NEW JERSEY COALITION FOR FAIR COMPETITION A CONTRACTORS' GROUP THAT INITIATED THE CHALLENGE AGAINST PSE&G HAILED THE FINDINGS AS AN UNPRECEDENTED LEGAL VICTORY NORMAN ADELMAN AN ASBURY PARK NJ CONTRACTOR AND THE COALITION'S PRESIDENT SAYS UNFAIR COMPETITION FROM UTILITIES IS A BIG REASON WHY AN ESTIMATED 1500 CONTRACTING BUSINESSES IN NEW JERSEY HAVE FAILED OVER THE PAST 18 MONTHS HE ARGUES THAT UTILITIES ARE ENGAGED IN PREDATORY PRICING A PSE&G SPOKESMAN REJECTS THE CHARGE NOTING THAT CONTRACTORS HAVE BEEN BEATING THIS DRUM FOR YEARS AND BEEN REJECTED BY REGULATORS AND THE COURTS THE NEW JERSEY CASE REFLECTS WIDESPREAD FRUSTRATION AMONG SMALL CONTRACTORS ACROSS THE US TONY PONTICELLI A LAWYER WITH THE NATIONAL ALLIANCE FOR FAIR COMPETITION SAYS CONTRACTORS ARE INVOLVED IN SIMILAR LEGAL BATTLES AGAINST UTILITIES IN ABOUT 20 OTHER STATES WITH ENERGY DEMAND GROWING SLOWLY UTILITIES SOUGHT OTHER SOURCES OF REVENUE SAYS THOMAS A MAHONEY EDITOR AT LARGE OF AIR CONDITIONING HEATING & REFRIGERATION NEWS TROY MICH IF THE UTILITIES CAN SUBSIDIZE A SERVICE BUSINESS THEY'LL BLOW EVERYBODY OUT OF THE WATER TRIVIA QUIZ IS THE NEW FEDERAL LEAVE LAW TOUGHER THAN CONNECTICUT'S NO ONE KNOWS FOR SURE THE CONFUSION IS NO TRIVIAL MATTER FOR SMALL BUSINESSES IN CONNECTICUT AND OTHER STATES WITH FAMILYLEAVE LEGISLATION THE FEDERAL LAW WHICH TOOK EFFECT LAST MONTH REQUIRES EMPLOYERS TO COMPLY WITH STATE STATUTES THAT ARE MORE GENEROUS BUT SMALL FIRMS OFTEN FIND IT MINDBOGGLING TO FIGURE OUT WHICH PARTS OF THE LAWS ARE MORE FAVORABLE TO EMPLOYEES FOR EXAMPLE THE US LAW REQUIRES BUSINESSES TO GRANT WORKERS UP TO 12 WEEKS OF UNPAID LEAVE A YEAR TO CARE FOR INFANTS OR ILL FAMILY MEMBERS CONNECTICUT PROVIDES 16 WEEKS EVERY TWO YEARS SO HOW MUCH TIME CAN A CONNECTICUT EMPLOYEE TAKE OFF OVER TWO YEARS THE LABOR DEPARTMENT SAYS THE ANSWER IS 28 WEEKS THE EMPLOYEE CAN INVOKE CONNECTICUT'S LAW TO TAKE 16 WEEKS THE FIRST YEAR AND THEN TAKE THE FEDERAL LAW'S 12 WEEKS THE SECOND YEAR AND THAT IS A RELATIVELY STRAIGHTFORWARD EXAMPLE IN A DOCUMENT COMPARING THE FEDERAL LEAVE LAW WITH THE LAWS OF 10 STATES AND WASHINGTON DC ON 14 ISSUES THE LABOR DEPARTMENT CONCLUDES THAT DECIDING WHICH STATUTE IS MORE GENEROUS OFTEN DEPENDS UPON CIRCUMSTANCES I GET A HEADACHE JUST THINKING ABOUT IT SAYS LINDA MUNSELL HUMANRESOURCES MANAGER FOR SCITOR CORP A SUNNYVALE CALIF SYSTEMSENGINEERING FIRM WITH 200 EMPLOYEES IN SEVERAL STATES MS MUNSELL FINALLY GAVE UP TRYING TO RECONCILE CALIFORNIA'S LEAVE LAW WITH THE FEDERAL ACT WE THREW UP OUR HANDS AND SENT THE MATTER TO A CONSULTANT SHE SAYS LISA SPANN MASLO AN ATTORNEY AT THE SAN FRANCISCO OFFICE OF MCKENNA & CUNEO SAYS THE LAW FIRM USUALLY CAN HELP A COMPANY REWRITE ITS BENEFITS PACKAGE TO COMPLY WITH VARYING LEAVE LEGISLATION FOR LESS THAN 3000 BUT SHE WORRIES THAT SMALL COMPANIES LACKING HUMANRESOURCES STAFFS WILL HAVE TROUBLE IMPLEMENTING NEW POLICIES HOW ARE THEY GOING TO TRAIN THEIR MANAGERS SHE ASKS ARE THEY GOING TO MAKE MISTAKES AND POSSIBLY GET SUED MEANWHILE THE PROSPECT OF TOUGHER LEGISLATION LOOMS THE CENTER FOR POLICY ALTERNATIVES A WASHINGTON THINK TANK HAS WRITTEN A MODEL LAW WHICH IT HOPES A STATE WOULD ADOPT THAT WOULD REQUIRE A STATE COMMISSION TO STUDY THE FEASIBILITY OF REQUIRING PAID LEAVE A DOGOODER TRIES TO FILL A REGULATORY GAP FOR INVENTORS FOR YEARS AMATEUR INVENTORS HAVE BEEN PLAGUED BY SOCALLED INVENTIONMARKETING COMPANIES THAT CHARGE PLENTY FOR WORTHLESS SERVICES CRITICS SAY SUCH FIRMS STILL FLOURISH DESPITE PERIODIC CRACKDOWNS BY THE FEDERAL TRADE COMMISSION AND STATE LAW ENFORCERS OFTEN AFTER A BRUSH WITH AUTHORITIES THE COMPANIES SIMPLY CHANGE THEIR NAMES OR LOCALES ENTER ROBERT LOUGHER PRESIDENT OF INVENTORS AWARENESS GROUP INC IN WEST SPRINGFIELD MASS HE SAYS HE FORMED THE GROUP LAST YEAR TO WARN SMALL INVENTORS ABOUT POSSIBLE ABUSES BY INVENTIONMARKETING COMPANIES MR LOUGHER RECALLS THAT HE WAS ONCE PART OF THE PROBLEM AFTER RETIRING FROM THE AIR FORCE HE JOINED AN INVENTIONMARKETING CONCERN AS A TELEMARKETER AND LATER BECAME A MARKETING DIRECTOR HE SAYS HE QUIT IN DISGUST AFTER 18 MONTHSAND TWO WEEKS LATER LAUNCHED HIS CRUSADE SINCE DECEMBER HE AND A PARTNER HAVE SPENT 70000 OF THEIR OWN MONEY TO RUN WARNING MESSAGES IN THE SAME PUBLICATIONS USED BY INVENTIONMARKETING COMPANIES MR LOUGHER SAYS HIS ORGANIZATION ALSO HAS SENT OUT 15000 FREE PAMPHLETS ON COMMERCIALIZING INVENTIONS INVENTOR GROUPS PRAISE MR LOUGHER'S EFFORTS I WAS VERY SUSPICIOUS AT FIRST BUT HE HAS PROVED HIS WORTH 100 TIMES OVER SAYS BOBBY TOOLE CHAIRMAN OF THE UNITED INVENTORS ASSOCIATION OF THE USA IN ST LOUIS DAVID BROWN A NEWPORT NH BUILDING CONTRACTOR AND INDEPENDENT INVENTOR SAYS ONE OF THE BROCHURES STEERED HIM AWAY FROM A MARKETING FIRM THAT HAD ALREADY BILKED HIM OUT OF 2000 NOW I'M ON THE RIGHT TRACK HE SAYS SMALL TALK CALIFORNIA COFFEE CO SAYS A NEW CALIFORNIA HEALTH REGULATION GOES TOO FAR BY REQUIRING ESPRESSO CARTS TO KEEP THEIR COFFEE GRINDERS AND COFFEE MAKERS ENCLOSED IN A FOOD COMPARTMENT WHEN NOT IN USE THE DEPARTMENT OF ENERGY SAYS IT HAS NEGOTIATED MORE THAN 500 RESEARCHANDDEVELOPMENT AGREEMENTS BETWEEN ITS LABORATORIES AND THE PRIVATE SECTOR SINCE APRIL 1991 9309150150 930915 TOBACCO UNIT OF RJR TO CUT 9 OF ITS STAFF CIGARETTE PRICE WAR HAS EFFECT CUTS ARE LIKELY IN MARKETING BUDGET BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL WITH PROFITS UNDER PRESSURE FROM THE CIGARETTE PRICE WAR RJ REYNOLDS TOBACCO CO SAID IT PLANNED TO ELIMINATE ABOUT 1000 TOBACCOCOMPANY JOBS OR 9 OF ITS WORK FORCE MORE COSTCUTTING STEPS ARE EXPECTED AT THE TOBACCO UNIT OF RJR NABISCO HOLDINGS CORP STAY TUNED SAID AN RJR EXECUTIVE THE AX IS NEXT EXPECTED TO FALL ON RJR'S ESTIMATED 25 BILLION MARKETING BUDGET IN A LETTER SENT TO EMPLOYEES YESTERDAY OUTLINING THE CUTBACKS JAMES W JOHNSTON THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RJ REYNOLDS TOBACCO SAID MOST OF OUR COSTCUTTING WILL COME FROM REDUCING NONPERSONNEL COSTS ASSOCIATED WITH DEVELOPING MANUFACTURING MARKETING AND SELLING OUR PRODUCTS SEPARATELY RJR IS EXPECTED TO NAME JOHN J DELUCCA AS TREASURER SUCCEEDING FREDERICK ZUCKERMAN WHO IN THE LATEST IN A SERIES OF HIGHLEVEL DEPARTURES FROM RJR WILL TAKE THE TREASURER'S JOB AT INTERNATIONAL BUSINESS MACHINES CORP MR DELUCCA 50 YEARS OLD MOST RECENTLY WAS CHIEF FINANCIAL OFFICER AT HASCOE ASSOCIATES A GREENWICH CONN A PRIVATE HOLDING COMPANY THE TOBACCOCOMPANY JOB CUTS HAVE BEEN EXPECTED SINCE THE PRICE WAR BROKE OUT AT THE BEGINNING OF SUMMER EARLIER THIS MONTH RJR SAID THE WAR WOULD COST THE COMPANY 900 MILLION IN TOBACCO OPERATING PROFITS THIS YEAR RJR REFUSED TO SAY HOW MUCH IT WOULD SAVE BY ELIMINATING THE POSITIONS MOST OF WHICH WILL BE IN THE COMPANY'S WHITECOLLAR WORK FORCE MR JOHNSTON SAID THAT SOME OF JOBS WILL BE ELIMINATED BY AS EARLY AS NEXT WEEK WITH ALL OF THE CUTS TAKING PLACE BY THE MIDDLE OF NEXT YEAR AN RJR EXECUTIVE SAID THE CUTS WILL BE A COMBINATION OF LAYOFFS AND EARLYRETIREMENT PACKAGES RJ REYNOLDS CURRENTLY HAS ABOUT 11000 TOBACCO EMPLOYEES DOWN FROM 14500 BEFORE THE KOHLBERG KRAVIS ROBERTS & COLED LEVERAGED BUYOUT IN 1989 RJR NABISCO HAS 63000 EMPLOYEES ALTOGETHER NONETHELESS WALL STREET ANALYSTS COMPLAINED THAT RJR ISN'T MOVING QUICKLY ENOUGH TO BRING EXPENSES DOWN THEY HAVE A LOT OF FAT THEY STILL NEED TO CUT SAID S LEIGH FERST A TOBACCO ANALYST AT PRUDENTIAL SECURITIES MS FERST ESTIMATES THAT THE HEADCOUNT REDUCTIONS WILL SAVE THE COMPANY BETWEEN 50 MILLION AND 100 MILLION SHE SAYS THE COMPANY MUST CUT EXPENSES BY A MINIMUM OF 250 MILLION MR JOHNSTON'S LETTER OUTLINED THE GRIM NEW REALITIES OF THE CIGARETTE INDUSTRY PRICE CUTS HE SAID HAVE REDEFINED OUR PROFIT MARGINS WE MUST DETERMINE HOW WE CAN DRAMATICALLY LOWER OUR COST OF DOING BUSINESS RJR'S STOCK FELL 125 CENTS OR 26 TO CLOSE AT 475 A SHARE YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE JOB CUTS AT RJ REYNOLDS PUT ADDED PRESSURE ON PHILIP MORRIS COS TO CONTROL ITS EXPENSES IN RECENT REMARKS TO FINANCIAL ANALYSTS JOHN R NELSON SENIOR VICE PRESIDENT OF PHILIP MORRIS'S DOMESTIC TOBACCO DIVISION SAID THAT THE TOBACCO UNIT HAS CUT ITS HEAD COUNT AND COSTS BY 11 IN THE PAST TWO YEARS WE WILL BE EVEN MORE AGGRESSIVE IN SEEKING MARKETING EFFICIENCIES AND COST REDUCTIONS IN THE FUTURE HE SAID AT A MEETING LAST WEDNESDAY WITH ANALYSTS THE LAYOFFS ARE A BLOW TO WINSTONSALEM NC WHERE RJ REYNOLDS IS A MAJOR EMPLOYER IT'S NOT GOOD NEWS WHEN YOU LOSE 1000 JOBS AT A PRINCIPAL EMPLOYER IN TOWN SAID FRED NORDENHOLZ PRESIDENT OF THE GREATER WINSTONSALEM CHAMBER OF COMMERCE IT'S AN EMOTIONAL THING AS WELL AS AN ECONOMIC THING LESLIE SCISM CONTRIBUTED TO THIS ARTICLE 9309150149 930915 TUESDAY'S MARKETS BOND PRICES FALL ON DATA FOR INFLATION MARKET REACTS TO RISE IN CONSUMER PRICES INDUSTRIALS DROP 1845 BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STRONGERTHANEXPECTED INFLATION DATA SENT BOND PRICES TUMBLING STOCK PRICES ALSO SLID AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SANK 1845 POINTS TO 361576 AND STANDARD & POOR'S 500STOCK INDEX FELL 216 TO 45990 THE NASDAQ COMPOSITE INDEX PLUMMETED 768 TO 73264 BOND PRICES PLUNGED AFTER THE LABOR DEPARTMENT REPORTED THAT CONSUMER PRICES ROSE 03 IN AUGUST EXCEEDING EXPECTATIONS OF A 01 GAIN BOND INVESTORS WERE FURTHER DISAPPOINTED BY A COMMERCE DEPARTMENT REPORT SHOWING THAT RETAIL SALES CLIMBED 02 IN AUGUST RATHER THAN FELL 01 AS ECONOMISTS PREDICTED THE DECLINE IN BOND PRICES DROVE LONGTERM INTEREST RATES UP TO 598 FROM 588 MONDAY ANALYSTS SAID BOND TRADERS USED THE ECONOMIC DATA AS AN EXCUSE TO TAKE PROFITS IN A MARKET THAT HAS SOARED IN RECENT WEEKS WE'VE EXHAUSTED THE SIGNIFICANT BUYING POWER IN THE VERY NEAR TERM BECAUSE OF THE BIG RALLY WE'VE HAD SAID JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO SO ANY SELLING PRECIPITATED BY A SURPRISING ECONOMIC NUMBER WILL FORCE A DRAMATIC TURN MR BATTIPAGLIA PREDICTS THE YIELD ON THE LONG BOND WILL FLUCTUATE ONLY MODESTLY BETWEEN 575 AND 65 WE'LL SEE THE SHARP PRICE SWINGS BUT THEY WILL STAY IN A NARROW RANGE MR BATTIPAGLIA SAID DAVID C MUNRO CHIEF US ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK CONSULTING FIRM SAID HE WASN'T CONCERNED THAT THE LONG BOND WAS CREEPING BACK TOWARD A YIELD OF 6 HE NOTED THAT LONGTERM INTEREST RATES HAVE AVERAGED THREE PERCENTAGE POINTS ABOVE INFLATION SINCE THE 1920S WITH INFLATION NOW AT 29 A MOVE TOWARD A 6 YIELD WAS MERELY AN APPROPRIATE STEP TOWARD THE LONGTERM AVERAGE MR MUNRO ARGUED WE HAVE BASICALLY COME BACK TO THE FOUNDATION HE SAID MR MUNRO SAID THE INFLATION DATA RAISED NO NEW WARNING FLAGS HE POINTED OUT THAT THE INFLATION RATE IS BELOW THE 3 TARGET MANY ECONOMISTS HAVE SET STOCK PRICES FOLLOWED BOND PRICES LOWER THE INDUSTRIAL AVERAGE SANK NEARLY 20 POINTS AT THE OPENING AND SEESAWED THROUGHOUT THE DAY RECOVERING A BIT NEAR THE CLOSE OVERTHECOUNTER STOCKS WERE HIT ESPECIALLY HARD AS TECHNOLOGY ISSUES WERE SOLD HEAVILY FOR A SECOND DAY THE TECHNOLOGY DRUBBING FOLLOWED A REPORT LATE MONDAY THAT COMPAQ COMPUTER EXPECTED SLOWER SHIPMENTS OF PERSONAL COMPUTERS THE DOW JONES TRANSPORTATION AVERAGE GAVE BACK NEARLY ALL OF ITS GAIN OF 2330 POINTS MONDAY IT FELL 2223 TO 161253 THE STRONGER INFLATION NEWS GAVE GOLD SOME RELIEF FROM ITS RECENT BATTERING DECEMBER DELIVERY GOLD ROSE 210 AN OUNCE TO 34690 SINCE SEPT 3 GOLD HAS SLUMPED 1760 AN OUNCE A DROP OF 48 THE BOOST YESTERDAY GAVE A LIFT TO GOLD STOCKS WHICH ALSO HAVE PLUMMETED RECENTLY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 037 TO 11266 IN MAJOR MARKET ACTION STOCK PRICES SLID VOLUME TOTALED 2586 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1329 ISSUES FELL AND 679 ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1 3/8 POINTS OR MORE THAN 1375 FOR EACH 1000 FACE AMOUNT TO YIELD 598 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16095 MARKS AND 10583 YEN COMPARED WITH 16085 MARKS AND 10632 YEN MONDAY 9309150148 930915 BUSINESS BRIEF CCL INDUSTRIES INC STAKE IN CROWN CORK & SEAL IS SOLD FOR 894 MILLION GROSS CCL INDUSTRIES INC SAID IT SOLD ITS 25 MILLION SHARES OF CROWN CORK & SEAL CO TO GOLDMAN SACHS & CO FOR 3525 A SHARE FOR GROSS PROCEEDS OF 894 MILLION A SPOKESMAN FOR THE TORONTO PACKAGING AND CONSUMERPRODUCTS CONCERN SAID IT WILL REPORT A PRETAX GAIN OF 502 MILLION C66 MILLION ON THE SALE CROWN CORK & SEAL IS A PHILADELPHIA CONTAINER AND PACKAGING COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITS STOCK CLOSED AT 3475 UP 25 CENTS 9309150146 930915 TECHNOLOGY APPLE KODAK ARE SAID TO BE COOPERATING ON FILMLESS CAMERAS ROCHESTER NY APPLE COMPUTER INC AND EASTMAN KODAK CO ARE SET TO INTRODUCE TWO FILMLESS CAMERAS CAPABLE OF TRANSFERRING PHOTOS DIRECTLY INTO MACINTOSH COMPUTERS A PERSON FAMILIAR WITH THE PLANS SAID THE FIRST CAMERA CODENAMED VENUS IS EXPECTED TO BE INTRODUCED IN NOVEMBER AT THE COMDEX TRADE SHOW IN LAS VEGAS THE SECOND CAMERA MARS IS EXPECTED TO BE UNVEILED IN JANUARY AT THE MACWORLD EXPO IN SAN FRANCISCO BOTH COMPANIES DECLINED COMMENT UNLIKE FILMLESS CAMERAS ALREADY ON THE MARKET THE NEW CAMERAS ARE SAID TO PRODUCE INDIVIDUAL PRINTS THAT LOOK ALMOST AS GOOD AS PHOTOGRAPHS TAKEN ON CONVENTIONAL FILM BUT AT EXPECTED STREET PRICES OF 600 TO 2000 OR MORE APIECE THEY WILL BE WELL BEYOND THE REACH OF MOST CONSUMERS INSTEAD THE CAMERAS WILL BE TARGETED AT AD AGENCIES AND DESKTOP PUBLISHERS SAID BART WILSON A PRODUCT MANAGER AT DAYSTAR DIGITAL INC A PRIVATELY HELD FLOWERY BRANCH GA COMPANY THAT MAKES ACCELERATORS OR THE COMPUTER HARDWARE AND SOFTWARE THAT MAKES APPLE COMPUTERS RUN MORE QUICKLY MR WILSON WHO HAS SEEN BLUEPRINTS FOR THE VENUS CAMERA SAID IT IS DESIGNED TO CAPTURE UP TO 25 PICTURES DIRECTLY ONTO A COMPUTER CHIP A USER MAY THEN PLUG THE CAMERA DIRECTLY INTO AN APPLE COMPUTER ONCE IMAGES ARE TRANSFERRED INTO THE COMPUTER THEY MAY BE EDITED USING VARIOUS PROGRAMS OR PRINTED OUT ON COLOR PRINTERS OR COLOR LASER COPIERS HOWEVER MR WILSON SAID IMAGES PRODUCED BY VENUS WON'T BE DETAILED ENOUGH TO BE REPRODUCED AT LARGE SIZES IN MAGAZINES OR OTHER PUBLICATIONS MARS IS EXPECTED TO COST MORE THAN 2000 AND TO PRODUCE HIGHER QUALITY IMAGES THAT MIGHT BE GOOD ENOUGH FOR SUCH REPRODUCTION MR WILSON SAID MACWEEK AN INDUSTRY MAGAZINE HAS REPORTED THAT MARS WOULD STORE ITS IMAGES ON MINI COMPACT DISKS MADE BY SONY CORP APPARENTLY BOTH CAMERAS WILL BE MARKETED BY APPLE ALEXIS GERARD PUBLISHER OF THE BURLINGAME CALIF NEWSLETTER FUTURE IMAGE REPORT SAID APPLE IS WORKING ON A LINE OF DIGITAL CAMERAS THAT IT PLANS TO MARKET ON ITS OWN HOWEVER HE DECLINED TO DISCUSS PARTICULAR PRODUCTS 9309150144 930915 INTERNATIONAL RABIN VISITS MOROCCO AS PROGRESS IN MIDEAST BECOMES ORDER OF DAY BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNEXPECTED IS STARTING TO BECOME ROUTINE IN MIDDLE EAST AFFAIRS ISRAELI PRIME MINISTER YITZHAK RABIN VISITED THE ARAB NATION OF MOROCCO YESTERDAY PALESTINIAN LEADER YASSER ARAFAT HUDDLED WITH US LAWMAKERS BEFORE MEETING NEWS REPORTERS AND ISRAEL AND JORDAN AGREED TO AN AGENDA FOR PEACE TALKS MR RABIN ON HIS WAY HOME FROM WASHINGTON HELD AN UNSCHEDULED MEETING WITH MOROCCO'S KING HASSAN II TO CAPITALIZE QUICKLY ON MONDAY'S HISTORIC AGREEMENT BETWEEN ISRAELIS AND PALESTINIANS MR RABIN HOPES TO OPEN DIPLOMATIC TIES WITH ANOTHER ARAB GOVERNMENT SOON TO DEMONSTRATE THE DIVIDENDS OF PEACE TO ISRAELIS WHO ARE SKEPTICAL ABOUT HIS DEAL WITH MR ARAFAT KING HASSAN HAS LONG TAKEN A MODERATE POSITION TOWARD ISRAEL BUT EGYPT IS THE ONLY ARAB STATE TO HAVE DIPLOMATIC RELATIONS WITH THE JEWISH STATE ON CAPITOL HILL AND AT THE NATIONAL PRESS CLUB IN WASHINGTON MR ARAFAT WHO UNTIL THIS WEEK WAS PROHIBITED FROM WASHINGTON PLEADED FOR AID TO THE PALESTINIANS AS ISRAEL PREPARES TO TURN OVER GOVERNANCE OF GAZA AND THE WEST BANK US LAWMAKERS PROMISED TO REVIEW LEGISLATION THAT BLOCKS AID AND SETS TRAVEL RESTRICTIONS ON THE PALESTINE LIBERATION ORGANIZATION BECAUSE OF ITS HISTORY OF TERRORISM AGAINST ISRAELIS AND AMERICANS IN A PRIVATE JOINT MEETING MONDAY WITH JEWISHAMERICAN AND ARABAMERICAN LEADERS ITSELF A RARE EVENT PRESIDENT CLINTON CALLED ON BOTH GROUPS TO WORK TOGETHER TO PROMOTE THE ISRAELIPALESTINIAN ACCORD YESTERDAY MR CLINTON SAID HE IS CONSIDERING CONVENING A DONORS' CONFERENCE OF NATIONS FROM EUROPE ASIA AND THE MIDEAST TO COORDINATE AN AID PACKAGE FOR PALESTINIANS BUT MR ARAFAT'S COMMENTS THAT PALESTINIANS EXPECT TO TAKE CONTROL OF ARAB EAST JERUSALEM ONCE AN INDEPENDENT PALESTINIAN STATE IS ESTABLISHED SHOW HOW DIFFICULT THE ROAD TO PEACE WILL BE MR RABIN HAS VOWED THAT JERUSALEM WILL REMAIN UNIFIED AND THE CAPITAL OF ISRAEL AND ISRAELI LEADERS OPPOSE CREATION OF A PALESTINIAN STATE UNDER THE ACCORD SIGNED MONDAY WHICH GRANTS LIMITED AUTONOMY TO PALESTINIANS IN GAZA AND THE WEST BANK ISRAELIS AND PALESTINIANS WILL NEGOTIATE AFTER TWO YEARS ON A FINAL RESOLUTION OF THEIR DISPUTE INCLUDING THE STATUS OF JERUSALEM MEANWHILE JORDAN AND ISRAEL TOOK A SIGNIFICANT STEP TOWARD RESOLVING THEIR DIFFERENCES IN A SIGNING CEREMONY AT THE STATE DEPARTMENT THE TWO NATIONS AGREED TO AN AGENDA FOR PEACE TALKS WHICH WILL ENABLE THEM TO CONVENE EXPERT GROUPS TO WORK ON PROBLEMS SOMEHOW THIS REMINDS ME OF YESTERDAY MONDAY THIS IS REALLY AN EXTRAORDINARY WEEK FOR THE MIDDLE EAST PEACE PROCESS SAID SECRETARY OF STATE WARREN CHRISTOPHER WHO PRESIDED STILL AMBASSADOR FAYEZ TARAWNEH JORDAN'S CHIEF NEGOTIATOR MADE CLEAR THAT PEACE BETWEEN THE TWO NATIONS ISN'T IMMINENT IT'S A MATTER OF NEGOTIATION FIRST AND ALSO IT'S A MATTER OF COMPREHENSIVENESS HE SAID MEANING THAT ARAB STATES NEGOTIATING WITH ISRAEL WANT IT TO SETTLE ITS DIFFERENCES WITH ALL OF THEM BEFORE PEACE TREATIES ARE SIGNED 9309150143 930915 CORRECTIONS & AMPLIFICATIONS BOSTON UNIVERSITY'S LEADERSHIP INSTITUTE COURSE FOR EXECUTIVES TOTALS FOUR WEEKS IN LENGTH INFORMATION PROVIDED BY BRICKER'S INTERNATIONAL DIRECTORY AND PRESENTED IN A CHART IN LAST FRIDAY'S REPORT ON EXECUTIVE EDUCATION INCORRECTLY REPORTED ITS LENGTH AS TWO WEEKS TEXACO INC CLOSED MONDAY AT 65375 A SHARE A TAPEWATCH ITEM IN YESTERDAY'S EDITION INCORRECTLY LISTED THE CLOSING PRICE AS 35375 FORSTMANN LITTLE & CO'S STAKE IN GENERAL INSTRUMENT INC ON A FULLY DILUTED BASIS WILL FALL TO 27 FROM 33 AS A RESULT OF A PROPOSED OFFERING OF GENERAL INSTRUMENT'S SHARES AN ARTICLE MONDAY INCORRECTLY SAID THE STAKE WOULD FALL TO 21 FROM 48 9309150142 930915 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 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 59 DAYS 308 60 TO 119 DAYS 316 120 TO 149 DAYS 317 150 TO 239 DAYS 324 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 314 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 256 TWO MONTHS 261 THREE MONTHS 271 SIX MONTHS 285 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 305 ONE MONTH 310 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 306 60 DAYS 307 90 DAYS 316 120 DAYS 315 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 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 674 60 DAYS 682 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLE RATE 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 670 60 DAYS 680 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 9309150141 930915 CITICORP TO SPEND OVER 100 MILLION TO UPGRADE GLOBAL NETWORK OF BRANCHES NEW YORK CITICORP PLANS TO SPEND MORE THAN 100 MILLION TO UPGRADE ITS GLOBAL NETWORK OF BANK BRANCHES AS THE BANKING GIANT LOOKS TO ADOPT NEW TECHNOLOGIES AND MARKETING STRATEGIES ASIDE FROM EVENTUALLY UPGRADING ITS EXISTING NETWORK OF 1400 BRANCHES WHICH EXECUTIVES ESTIMATE COULD COST 800000 A BRANCH ON AVERAGE THE NATION'S LARGEST BANK IS ADDING BRANCHES IN PLACES SUCH AS CONNECTICUT AND FRANCE WE WANT TO EXPAND TO CRITICAL MARKETS AROUND THE WORLD SAID PEIYUAN CHIA SENIOR EXECUTIVE VICE PRESIDENT AND HEAD OF GLOBAL CONSUMER BANKING STRONGER RESULTS THIS YEAR FROM CITICORP'S GLOBAL CONSUMER BANK WILL HELP PAY FOR THE ADDED COSTS SAID MR CHIA HE ADDED THAT THE 1993 GLOBAL CONSUMER RESULTS WILL BE SUBSTANTIALLY BETTER THAN LAST YEAR'S RESULTS OF 941 MILLION DRIVEN BY A REDUCTION IN THE COST OF BAD LOANS AND LOWER EXPENSES IN THE 1993 FIRST HALF THE GLOBAL CONSUMER BANK EARNED 643 MILLION THIS MONTH CITIBANK REOPENED ITS FLAGSHIP RETAIL BRANCH ON PARK AVENUE AT THE BANK'S NEW YORK HEADQUARTERS THE REDESIGN WILL SERVE AS A MODEL FOR HOW THE BANKING GIANT PLANS TO CHANGE BOTH THE PHYSICAL LAYOUT OF THE BRANCH AND THE CULTURE MOVING TOWARD A MORE SALESORIENTED APPROACH A NEW FLOOR PLAN ALLOWS MORE OF THE SPACE TO BE USED FOR MARKETING A BROAD ARRAY OF BANKING SERVICES AMONG OTHER THINGS THE NEW TECHNOLOGY PRODUCES CUSTOMER ACCOUNTS ON COMPUTER SCREENS FOR TELLER VIEWING AS SOON AS A CUSTOMER INSERTS A BANK CARD THEY'RE CHANGING FROM TRANSACTION CENTERS TO A STRONG SALES ORIENTATION SAID LES DINKIN A CONSUMER BANKING CONSULTANT THEY WANT TO MAKE IT MORE OF A STORE ONCE ON THE FOREFRONT OF CONSUMER BANKING CITIBANK IS CATCHING UP WITH THE LIKES OF BANC ONE CORP IN LEARNING HOW TO SELL ITS SERVICES THE BANK HOPES THE MOVES WILL ALLOW IT TO BECOME MORE PRODUCTIVE IN DELIVERING CONSUMER PRODUCTS AND TO ATTRACT MORE PEOPLE THERE IS NO EXPLICIT TIMETABLE FOR THE UPGRADE OF ITS NETWORK THE BANK HOPES TO HAVE THE IMPROVED TECHNOLOGY IN PLACE BY YEAR END IN THE US THEY'RE TAKING A VERY PRACTICAL APPROACH IT'S A POSITIVE THAT IT'S NOT TOO QUICK SAID DIANE GLOSSMAN BANKING ANALYST AT SALOMON BROTHERS 9309150139 930915 WHO'S NEWS FAIRCHILD CORP FAIRCHILD CORP CHANTILLY VA MEL D BORER WAS NAMED CORPORATE VICE PRESIDENT OF THIS AEROSPACE AND INDUSTRIAL PRODUCTS AND COMMUNICATIONS SERVICES COMPANY MR BORER 50 YEARS OLD CONTINUES AS PRESIDENT OF THE COMPANY'S FAIRCHILD COMMUNICATIONS SERVICES CO UNIT 9309150138 930915 BUSINESS BRIEF ESQUIRE RADIO & ELECTRONICS INC UNIT OF SOUTHWESTERN BELL SOLE CUSTOMER GRANTS PACT ESQUIRE RADIO & ELECTRONICS INC SAID IT RENEWED A CONTRACT TO SELL TO A SOUTHWESTERN BELL CORP UNIT ITS SOLE CUSTOMER THE NEW YORK COMPANY EARLIER THIS YEAR HAD WARNED THAT SOUTHWESTERN BELL WAS DISCUSSING A SUBSTANTIAL REDUCTION IN ITS BUSINESS WITH ESQUIRE THE NEW AGREEMENT WHICH RUNS TO THE END OF 1997 GUARANTEES MINIMUM PAYMENTS OF 45 MILLION IN 1993 AND 35 MILLION IN 1994 AND GRANTS WIDER LATITUDE IN SEEKING OTHER CUSTOMERS ESQUIRE DEVELOPS INSPECTS DISTRIBUTES AND SERVICES TELECOMMUNICATIONS EQUIPMENT FOR SOUTHWESTERN BELL TELECOMMUNICATIONS INC 9309150137 930915 BUSINESS BRIEF LEASEWAY TRANSPORTATION CORP DEBT IS SWAPPED FOR STOCK AS FIRM LEAVES CHAPTER 11 LEASEWAY TRANSPORTATION CORP CLEVELAND SAID IT EMERGED FROM CHAPTER 11 BANKRUPTCY PROTECTION THE HOLDERS OF 500 MILLION OF THE COMPANY'S LONGTERM DEBT SWAPPED THE DEBT FOR A TOTAL OF 10 MILLION COMMON SHARES THE COMPANY SAID IT IS IN THE PROCESS OF FILING A REGISTRATION STATEMENT TO TRADE ON A PUBLIC STOCK EXCHANGE IN A RELATED MATTER LEASEWAY A TRANSPORTATION AND LOGISTICS SUPPORT SERVICES CONCERN SAID IT ENTERED INTO A LONGTERM CREDIT AGREEMENT WITH ITS SENIOR LENDERS THAT WILL PROVIDE FINANCING THROUGH 1997 LEASEWAY'S LEADING LENDER IS CAISSE NATIONALE DE CREDIT AGRICOLE 9309150134 930915 ECONOMY CONSUMER PRICES INCREASED 03 DURING AUGUST RETAIL SALES CLIMBED 02 ANALYSTS SAY STATISTICS DON'T CHANGE OUTLOOK BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RETAIL SALES AND CONSUMER PRICES BOTH INCREASED MODERATELY IN AUGUST THE COMMERCE DEPARTMENT SAID RETAIL SALES ROSE 02 LAST MONTH TO 17352 BILLION THE RISE WAS THE LATEST IN A FIVEMONTH STRING BUT IT WAS SLOWER THAN THE PREVIOUS FOUR MONTHS MEANWHILE THE LABOR DEPARTMENT SAID CONSUMER PRICES ROSE 03 IN AUGUST AFTER INCREASING 01 IN JULY AND REMAINING UNCHANGED IN JUNE EXCLUDING FOOD AND ENERGY PRICES ALSO ROSE 03 FASTER THAN THE 01 RISE IN EACH OF THE TWO PREVIOUS MONTHS ANALYSTS SAID THE SLIGHT ACCELERATION IN CONSUMER PRICES LAST MONTH AND THE SLOWDOWN IN RETAIL SALES DON'T CHANGE THEIR VIEW OF THE US ECONOMY PRICES ARE PRETTY WELL BEHAVED AND CONSUMERS SEEM WILLING TO SPEND DESPITE THEIR SAGGING CONFIDENCE AND THE SLOW JOB MARKET STILL INVESTORS REACTED NEGATIVELY TO THE ECONOMIC REPORTS PUSHING BOND AND STOCK PRICES LOWER RICHMOND FEDERAL RESERVE PRESIDENT J ALFRED BROADDUS SAID THE CONSUMER PRICE RISE IN AUGUST WAS A LITTLE BIT OF A DISAPPOINTMENT GIVEN THE TINY RISE IN PRICES FROM MAY THROUGH JULY BUT MR BROADDUS ALSO SEEMED ENCOURAGED BY CONSUMER DEMAND WHICH WAS STRONG IN THE SECOND QUARTER HE SAID DEMAND WILL CONTINUE TO RISE UNLESS THE JOB MARKET AND INCOMES WEAKEN MY OVERALL SENSE IS THAT RETAIL ACTIVITY IS PRETTY HEALTHYHEALTHIER THAN EMPLOYMENT AND ESPECIALLY CONSUMER CONFIDENCE SUGGESTS SAID CHARLES LIEBERMAN DIRECTOR OF FINANCIAL MARKETS RESEARCH AT CHEMICAL SECURITIES INC IN NEW YORK RETAIL SALES OF DURABLE GOODS SHOWED THE MOST STRENGTH LAST MONTH SALES OF BUILDING MATERIALS JUMPED 18 A GAIN ANALYSTS ATTRIBUTED IN PART TO THE START OF REBUILDING EFFORTS AFTER FLOODING IN THE MIDWEST SALES AT FURNITURE STORES DROPPED AUTO SALES WERE UP 07 MR LIEBERMAN SAID CAR SALES WOULD HAVE BEEN EVEN STRONGER HAD THERE BEEN MORE CARS TO BUY CAR SALES ARE BEING HELD DOWN BY A LACK OF INVENTORY HE SAID MANUFACTURERS DIDN'T REALIZE THE DEGREE TO WHICH CAR SALES WOULD HOLD UP IN THE NONDURABLE GOODS SECTOR SALES WERE UP AT DEPARTMENT STORES FOOD STORES AND APPAREL SHOPS THEY FELL AT RESTAURANTS GAS STATIONS AND DRUGSTORES ANALYSTS SAID THE RISE IN PRICES LAST MONTH CAME MAINLY FROM ONETIME FACTORS APPAREL PRICES JUMPED BY 09 DURING THE MONTH FOR INSTANCE BECAUSE DEPARTMENT STORES INTRODUCED EXPENSIVE WOMEN'S FALL LINES EARLY SAID ED YARDENI CHIEF ECONOMIST FOR CJ LAWRENCE IN NEW YORK CAR PRICES ALSO WERE UP WHICH MR YARDENI ATTRIBUTED TO THE ABSENCE OF DISCOUNTS AT THE END OF THE MODEL YEAR REAL AVERAGE WEEKLY EARNINGS ROSE 08 IN AUGUST THE COMMERCE DEPARTMENT SAID AFTER RISING 03 IN JULY LAST MONTH'S INCREASE WAS THE RESULT OF INCREASES IN HOURS WORKED AND AVERAGE HOURLY EARNINGS THE GAIN WAS PARTLY OFFSET BY A 01 RISE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS SEPARATELY THE DEPARTMENT SAID ITS BROADEST MEASURE OF THE US TRADE DEFICIT WIDENED TO 2693 BILLION IN THE SECOND QUARTER FROM 2231 BILLION IN THE FIRST THAT'S THE HIGHEST LEVEL SINCE THE FOURTH QUARTER OF 1988 THE CURRENT ACCOUNT AS IT IS CALLED TRACKS NOT ONLY THE FLOW OF GOODS TO AND FROM THE US BUT THE FLOW OF SERVICES AND INVESTMENT AS WELL ANALYSTS ATTRIBUTED THE DETERIORATION IN THE DEFICIT TO ECONOMIC WEAKNESS AMONG THE MAJOR US TRADING PARTNERS WHICH IS DAMPING EXPORTS OF GOODS AND SERVICES ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR AUGUST AUGUST CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM AUGUST 1992 WERE 9309150132 930915 WHO'S NEWS RUBBERMAID NAMES CARROLL AS PRESIDENT AND OPERATING CHIEF WOOSTER OHIO TEN MONTHS AFTER THE ABRUPT RESIGNATION OF ITS CHIEF EXECUTIVE OFFICER AND PROMOTION OF WOLFGANG R SCHMITT TO SUCCEED HIM RUBBERMAID INC NAMED ANOTHER CORPORATE INSIDER TO BE ITS SECONDINCOMMAND CHARLES A CARROLL 43 YEARS OLD AND A 22YEAR RUBBERMAID VETERAN WILL SERVE AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE HOUSEWARES AND TOY COMPANY MR CARROLL WHO WAS NAMED EXECUTIVE VICE PRESIDENT IN JUNE AND SERVED AS PRESIDENT OF THE COMPANY'S HOME PRODUCTS DIVISION WAS ALSO NAMED A DIRECTOR EXPANDING THE BOARD TO 12 MEMBERS MR CARROLL BEAT OUT THREE OUTSIDERS AND ONE INSIDER GARY BAUGHMAN THE HEAD OF THE COMPANY'S LITTLE TIKES TOY DIVISION MR BAUGHMAN INSTEAD WAS NAMED EXECUTIVE VICE PRESIDENT MR SCHMITT 49 YEARS OLD WILL NOW ALSO HAVE THE TITLE OF CHAIRMAN ALL TO HIMSELF AFTER SHARING THE COCHAIRMANSHIP SINCE LAST NOVEMBER WITH FORMER RUBBERMAID CHAIRMAN STANLEY GAULT MR GAULT ALSO CHAIRMAN AND CHIEF EXECUTIVE OF GOODYEAR TIRE & RUBBER CO STEPPED BACK INTO RUBBERMAID AS COCHAIRMAN LAST YEAR TO CALM WALL STREET JITTERS AFTER THE SUDDEN DEPARTURE OF CEO WALTER F WILLIAMS LAST NOVEMBER AFTER JUST 18 MONTHS IN THE TOP SPOT MR WILLIAMS THEN 58 YEARS OF AGE RESIGNED HIS POSTS OF CHAIRMAN CEO AND BOARD MEMBER LATE ON A FRIDAY AFTERNOON CITING PERSONAL REASONS BUT PEOPLE CLOSE TO THE SITUATION SAY HIS DEPARTURE FOLLOWED AN INVESTIGATION BY THE BOARD OUTSIDE ACCOUNTANTS AND LEGAL COUNSEL INTO ALLEGATIONS THAT HE HAD STEERED BUSINESS TO CONSULTANTS AND SUPPLIERS WHO WERE OLD FRIENDS MR WILLIAMS HAS DENIED THESE ALLEGATIONS IN A TELEPHONE INTERVIEW YESTERDAY MR SCHMITT WHO IS 49 YEARS OF AGE COMMENTED ON THE LENGTH OF THE SEARCH IT IS BETTER TO AGONIZE A BIT LONGER AND MAKE SURE THE FIT IS RIGHT THAN HAVE AN ARTIFICIAL DATE YOU'RE SHOOTING FOR 9309150131 930915 AMOCO WINS BID TO DEVELOP A BIG RUSSIAN OIL FIELD BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL AMOCO CORP BEAT OUT A JOINT BID BY EXXON CORP AND MOBIL CORP FOR THE CHANCE TO DEVELOP A FIVEBILLIONBARREL OIL FIELD IN WESTERN SIBERIA DEVELOPING THE FIELD WHICH IS CALLED PRIOBSKOYE AND IS ABOUT 1300 MILES EAST OF MOSCOW WOULD REQUIRE A MULTIBILLIONDOLLAR INVESTMENT OVER THE 50YEAR LIFE OF THE FIELD ALTHOUGH AN AMOCO SPOKESMAN IN CHICAGO WOULDN'T BE MORE SPECIFIC IF THE RECOVERABLE RESERVE ESTIMATES ARE CORRECT THE PRIOBSKOYE FIELD WOULD GENERATE ROUGHLY HALF THE CRUDE OF THE LARGEST OIL FIELD IN THE US ALASKA'S PRUDHOE BAY WHILE THERE REMAIN CRITICAL ELEMENTS TO BE NEGOTIATED AMOCO'S VICTORY GIVES THE COMPANY A LEG UP IN ONE OF THE LARGER OIL INDUSTRY DEVELOPMENT PROJECTS IN THE FORMER SOVIET UNION WESTERN COMPANIES HAVE MADE MANY ANNOUNCEMENTS OF INTENT TO TRY TO DEVELOP FIELDS IN THIS OILRICH PART OF THE WORLD SINCE THE FALL OF THE SOVIET UNION BUT FEW HAVE PRODUCED ANY BARRELS OF CRUDE YET IN AMOCO'S CASE THE COMPANY SUBMITTED A BID IN JULY THAT IT MADE JOINTLY WITH TWO RUSSIAN COMPANIES WITH OPERATIONS OR LICENSES IN THE AREA THAT ARE PRIVATIZING YUGANSKNEFTEGAZ AND YUGRANEFT THE AWARD TO AMOCO WAS MADE BY A COMMITTEE MADE UP OF RUSSIAN AND LOCAL GOVERNMENT OFFICIALS RAY LEWIS A VICE PRESIDENT OF THE AMOCO SUBSIDIARY WORKING IN RUSSIA SAID THAT IF THE COMPANY'S TECHNICAL ASSUMPTIONS ARE CORRECT THE FIELD'S PEAK PRODUCTION COULD HIT 450000 BARRELS A DAY THAT'S QUITE A LARGE FIELD HE SAID THE BIGGEST WESTERN VENTURE CURRENTLY PRODUCING BARRELS OF OIL IN THE FORMER SOVIET UNION IS CHEVRON CORP IT IS WORKING THE TENGIZ FIELD IN KAZAKHSTAN WHERE PRODUCTION IS EXPECTED TO PEAK AT 700000 BARRELS DAILY BUT AGREEING TO HOW MUCH OF THE FIELD'S OUTPUT AMOCO CAN KEEP AND PROFIT FROM A SOCALLED PRODUCTIONSHARING AGREEMENT IS ONE OF THE IMPORTANT POINTS THE COMPANY MUST STILL NEGOTIATE THEN IT MUST RECEIVE NUMEROUS GOVERNMENT APPROVALS THE PRODUCTIONSHARING AGREEMENT IS AT THE HEART OF THE NEGOTIATIONS SAID PETER KENNEL VICE PRESIDENT OF INTERNATIONAL NEGOTIATIONS THOSE ARE SENSITIVE ISSUES IN ADDITION AMOCO MUST WADE THROUGH RUSSIA'S EVOLVING TAX SYSTEM MR KENNEL SAID THAT THE BASIC APPROACH IS TO LOOK AT THE ECONOMICS OF THE PROJECT THEN FIGURE OUT THE TAX BURDEN AND TRY TO WORK WITH THE GOVERNMENT ON MODIFICATIONS THAT MAY BE NEEDED TO PRODUCE A REASONABLE PROFIT AMOCO AND ITS PARTNERS MUST ALSO AGREE ON HOW MUCH MONEY EACH WILL SPEND TO DEVELOP THE FIELD MR LEWIS SAID THE COMPANY HOPES TO COMPLETE ALL OF ITS NEGOTIATIONS AND RECEIVE ALL OF THE VARIOUS APPROVALS SOMETIME NEXT YEAR HE SAID DEVELOPMENT COULD THEN PROCEED SWIFTLY THE JOINT BID BY EXXON AND MOBIL THE TWO LARGEST US OIL COMPANIES STEMS FROM AN AGREEMENT THEY MADE A YEAR AGO TO SEARCH JOINTLY FOR LARGE OIL AND GAS FIELDS IN WESTERN SIBERIA AT THE TIME EXECUTIVES SAID THE TWO COMPANIES JOINED FORCES BECAUSE THE COMPANIES WANTED A PARTNER THAT RESEMBLED EACH OTHER WITH DEEP FINANCIAL POCKETS AND FIRSTRATE TECHNOLOGY IN FAIRFAX VA A MOBIL SPOKESMAN REFERRED ALL QUESTIONS ON THE LOSING BID TO EXXON IN IRVING TEXAS AN EXXON SPOKESMAN SAID WE ARE OF COURSE DISAPPOINTED BUT CONTINUE TO HAVE A LONGTERM INTEREST IN OIL AND GAS EXPLORATION AND DEVELOPMENT OPPORTUNITIES IN THE REGION 9309150130 930915 EDUCATION CHIEF RILEY UNVEILS HIS PLAN TO BOOST FLOW OF CASH TO POOREST SCHOOLS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A SHAKEUP OF THE FEDERAL GOVERNMENT'S LARGEST SCHOOL AID PROGRAM EDUCATION SECRETARY RICHARD RILEY ANNOUNCED PLANS TO SHIFT 500 MILLION TO THE NATION'S POOREST SCHOOLS TOO MANY CHILDREN ARE NOT GETTING THE HELP THEY NEED MR RILEY DECLARED THE 500 MILLION WOULD REPRESENT A 15 INCREASE IN FEDERAL EDUCATION FUNDS TO THE NATION'S POOREST COUNTIES IN FISCAL 1995 SCHOOLS WITH THE HIGHEST POVERTY LEVELS WOULD RECEIVE THE AID BEFORE OTHER SCHOOLS IN THE DISTRICT GIVING MANY IMPOVERISHED HIGH SCHOOLS AND MIDDLE SCHOOLS SOCALLED TITLE 1 MONEY FOR THE FIRST TIME THE EDUCATION DEPARTMENT CONTENDS THAT TITLE 1 THE FEDERAL PROGRAM AIMED AT HELPING DISADVANTAGED STUDENTS IS SPREAD TOO THIN CURRENTLY ONETHIRD OF THE CHILDREN IN THE HIGHESTPOVERTY SCHOOLS WHO SCORE IN THE BOTTOM THIRD ON READING TESTS DON'T RECEIVE SPECIAL FEDERAL SERVICES YET NEARLY HALF OF THE MOST AFFLUENT SCHOOLS RECEIVE TITLE 1 MONEY OFFICIALS SAID IN THE PROPOSED PLAN THE MOST AFFLUENT COUNTIES WOULD LOSE 34 OF THAT AID THE EDUCATION SECRETARY UNVEILED THE SWEEPING CHANGES AS PART OF THE PROPOSED REAUTHORIZATION OF THE ELEMENTARY AND SECONDARY EDUCATION ACT IN ANOTHER SHIFT MR RILEY WANTS TO BREAK WHAT EDUCATORS CALL THE CONSPIRACY OF LOW EXPECTATIONS INSTEAD OF DWELLING ON BASIC SKILLS HE WANTS DISADVANTAGED CHILDREN HELD TO THE SAME STANDARDS AS OTHER STUDENTS STATES VYING FOR TITLE 1 MONEY A PROPOSED 7 BILLION IN FISCAL 1995 MUST DEVELOP PLANS OUTLINING STUDENT CONTENT AND PERFORMANCE STANDARDS THESE COULD BE THE SAME ACADEMIC STANDARDS STATES ARE BEING ENCOURAGED TO DEVELOP UNDER THE GOVERNMENT'S GOALS 2000 INITIATIVE NOW PENDING IN CONGRESS THE PROPOSAL ALSO WOULD ENCOURAGE SCHOOLS WITH HIGH POVERTY LEVELS TO ADOPT SCHOOLWIDE PROGRAMS FOR DISADVANTAGED STUDENTS RATHE THAN CONTINUING TO PULL STUDENTS FROM THEIR REGULAR CLASSES TO DO REMEDIAL WORK MOREOVER THE PLAN WOULD REDUCE TESTING OF DISADVANTAGED STUDENTS REQUIRING SUCH TESTS ONLY AT CERTAIN GRADE LEVELS SCHOOLS WOULD BE HELD MORE ACCOUNTABLE FOR IMPROVING THEIR PROGRAMS UNDER THE PLAN AFTER TWO YEARS IF SCHOOLS DON'T MAKE PROGRESS TOWARD MEETING HIGHER STANDARDS LOCAL DISTRICTS WOULD BE REQUIRED TO TAKE CORRECTIVE ACTION SUCH AS PUTTING NEW ADMINISTRATORS IN THE SCHOOL OR ALLOWING STUDENTS TO TRANSFER TO OTHER SCHOOLS SCHOOLS THAT EXCEED THEIR STATE'S DEFINITION OF PROGRESS FOR THREE YEARS WOULD BECOME DISTINGUISHED SCHOOLS AND COULD RECEIVE MONETARY AWARDS TEACHERTRAINING PROGRAMS WOULD BE EXPANDED UNDER THE PROPOSED PROGRAM AND PARENTS WOULD BE ENCOURAGED TO PLAY A BIGGER ROLE IN THE LEARNING PROCESS SOME PARENTS WOULD BE OFFERED LITERACY TRAINING TO HELP THEIR CHILDREN MEET HIGHER EDUCATION STANDARDS DISTRICTS WOULD ALSO BE ENCOURAGED TO COORDINATE WITH HEALTH AND SOCIAL SERVICE AGENCIES UNDER THE PLAN AND MAKE SURE THAT THE POOREST ELEMENTARY STUDENTS HAD HEALTH SCREENINGS 9309150129 930915 LETTERS TO THE EDITOR NOT WORTH THEIR SALT RECENTLY THE JOURNAL ANNOUNCED THAT FORD IS RECALLING A HALFMILLION VEHICLES BECAUSE THE VEHICLES' DESIGN ALLOWS SALT AND MOISTURE TO DAMAGE THE VEHICLES DEICING SALT HAS BEEN USED TO RESTORE THE SAFETY OF WINTER HIGHWAYS FOR THE PAST HALFCENTURY USING SALT REDUCES INJURY ACCIDENTS 883 MANY OF FORD'S COMPETITORS SEEM TO HAVE SUCCESSFULLY OVERCOME THE DESIGN PROBLEMS THEY GUARANTEE THEIR VEHICLES FOR 10 YEARS AGAINST RUST 9309150128 930915 REVIEW & OUTLOOK EDITORIAL TILTED TOWN THE SENSE GROWS THAT THERE'S A GENERAL FEELING IN THE LAND THAT WASHINGTON IS A PLACE THAT ISN'T ON THE LEVEL THE TOWN'S VALUES INSTINCTS AND PRACTICES JUST SEEM OUT OF SYNC WITH WHAT PEOPLE REGARD AS NORMAL TO THEIR OWN EXPERIENCES TWO INCIDENTS CURRENTLY RATTLING INSIDE THE BELTWAY ARE THE LATEST ENTRIES IN THE STORY OF OUR TILTED CAPITAL CITY YOU MAY RECALL RECENTLY THE STORIES ABOUT THE STAFFERS IN THE CLINTON STATE DEPARTMENT WHO REQUESTED THE PERSONNEL FILES ON SOME 160 POLITICAL APPOINTEES FROM THE BUSH ADMINISTRATION LO AND BEHOLD SOME OF THIS STUFF ENDED UP IN THE WASHINGTON POST IT WAS IMMEDIATELY OBVIOUS IN LEGAL CIRCLES THAT THIS LEAK PROBABLY CONSTITUTED A VIOLATION OF THE PRIVACY ACT A MISDEMEANOR PUNISHABLE BY A 5000 FINE WHY EXACTLY THESE CLINTONITES WERE TROLLING THROUGH THE CONFIDENTIAL PARTS OF BUSH PERSONNEL FILES ISN'T CLEAR BUT THE EMBARRASSMENT WAS SUFFICIENT FOR SOME ADMINISTRATION ADULTS TO ASSIGN THE DEPARTMENT'S INSPECTOR GENERAL SHERMAN FUNK TO LOOK INTO IT A FEW SENATE REPUBLICANS RAISED QUIXOTIC CALLS FOR A SPECIAL PROSECUTOR TO INVESTIGATE NO SUCH LUCK OF COURSE THE ADMINISTRATION COULD ARGUE THAT THE INDEPENDENT COUNSEL LAW HAD LAPSED BESIDES THE PRESS LOST INTEREST SO THE PRESSURE WAS OFF FOR AN INDEPENDENT ANYTHING THOUGH SUCH INVESTIGATIONS ARE WITHIN THE POWER OF THE ATTORNEY GENERAL NOW REWIND ALL THE WAY BACK TO LAST YEAR'S PRESIDENTIAL RACE AND RECALL THE FLAP OVER THE BUSH CAMPAIGN'S TROUBLES WITH BILL CLINTON'S PASSPORT FILE SETTING ASIDE THAT THIS FORAY WAS IN FACT TRIGGERED BY A FREEDOM OF INFORMATION REQUEST FROM THE MEDIA ITS HANDLING PROVED HUGELY EMBARRASSING TO THE BUSHIES BUT WHILE IT SOMEHOW SEEMS APPROPRIATE TO THE BELTWAY'S SENSE OF PROPRIETY THAT THE CLINTON STAFFERS SHOULD GET A SPANKING MAYBE THE STORY OF THE BUSH CAMPAIGN PASSPORT FLAP HAS TAKEN A MORE FAMILIAR TURN IT IS THE SUBJECT OF A FULLBLOWN INVESTIGATION BY A SPECIAL PROSECUTOR NAMED JOSEPH DIGENOVA THE UMPTEENTH INDEPENDENT TERMINATOR PROGRAMMED TO PURSUE OFFICIALS WHO SERVED IN A REPUBLICAN ADMINISTRATION ON THE EVIDENCE SO FAR THIS IS SOMETHING MEMBERS OF A DEMOCRATIC ADMINISTRATION WON'T HAVE TO LOSE MUCH SLEEP REPUTATION OR INCOME OVER FOR STARTERS IT WAS LEARNED IN RECENT DAYS THAT JANET MULLINS ONE OF THE BUSH OFFICIALS INVOLVED WITH THE PASSPORT SEARCH IS FACING INCARCERATION OR FINES FOR FAILING TO COMPLY WITH A SUBPOENA FROM THE INDEPENDENT COUNSEL MR DIGENOVA WHOSE STAFF CONTAINS EIGHT ATTORNEYS ONLY TWO FEWER THAN LAWRENCE WALSH INITIALLY HAD FOR THE IRANCONTRA PROBE HAS NOW SPENT NINE MONTHS CONDUCTING AN INVESTIGATION IN WHICH NUMEROUS SUBPOENAS HAVE BEEN ISSUED INCLUDING ONE SEEKING THE PERSONAL FILES OF GEORGE BUSH AND JAMES BAKER TAXPAYERS PICK UP THE TAB FOR THE DIGENOVA OPERATION BUT THE BUSH OFFICIALS LIKE MANY OTHERS BEFORE THEM ARE ON THEIR OWN STEVEN BERRY ONE OF THE PLAYERS PERIPHERALLY INVOLVED IN THE PASSPORT DRAMA HAS INCURRED MORE THAN 200000 IN LEGAL BILLS TO COVER EXPENSES INVOLVED WITH THE DIGENOVA INVESTIGATION FORMER STATE DEPARTMENT SPOKESWOMAN MARGARET TUTWILER AND MS MULLINS HAVE HAD A LEGAL DEFENSE FUND ESTABLISHED TO HELP OFFSET THEIR FINANCIAL BURDENS MR DIGENOVA A PARTNER IN THE WASHINGTON LAW OFFICE OF MANATT PHELPS A FIRM THAT UNTIL LAST YEAR HOUSED MICKEY KANTOR THE CLINTON ADMINISTRATION'S TRADE REPRESENTATIVE IS OPERATING UNDER A BIG HEAD OF STEAM THAT WAS THE RESULT OF MUCH HUFFING AND PUFFING ABOUT THE MATTER LAST YEAR IN OCTOBER HOUSE DEMOCRATS DEMANDED THAT THOSE IMPLICATED IN THE PASSPORT INCIDENT TURN OVER THEIR AUTOMATED PHONE RECORDS AND TELEPHONE LOGS THE EVENT BUILT INTO A FAMILIAR MEDIA BONFIRE WHEN IN THIS ATMOSPHERE THE BUSH ADMINISTRATION'S ATTORNEY GENERAL WILLIAM BARR RECOMMENDED THE APPOINTMENT OF AN INDEPENDENT COUNSEL GEORGE STEPHANOPOULOS PRAISED THE MOVE AS A GOOD STEP AND SAID IT WOULD HAVE BEEN TERRIBLY EMBARRASSING IF MR BARR HAD NOT DONE SO BUT NO SUCH CALLS HAVE GONE OUT FOR JANET RENO TO DO THE SAME FOR THE OVERLY EAGER CLINTONITES WASHINGTON ISN'T VERY GOOD AT GETTING A PERSPECTIVE ON ITS BEHAVIOR OR BY THE TIME IT DOES IT'S TOO LATE WITNESS THE OVERWHELMING SUPPORT OUT IN THE COUNTRY FOR TERM LIMITS WE THOUGHT THOUGH THAT THE WASHINGTON POST GOT IT RIGHT LAST WEEK WHEN IT EDITORIALIZED THE DISTURBING PATTERN OF SLIPSHOD OR IRREGULAR PRACTICES SO EVIDENT IN THE TRAVEL OFFICE FIASCO BUT ONCE THOUGHT TO BE CONFINED TO THE WHITE HOUSE HAS EXTENDED TO THE STATE DEPARTMENT A MORE JUDICIOUS POLITICAL CULTURE WOULD KNOW HOW TO HANDLE THESE TWO SIMILAR INCIDENTS BUT NOT WASHINGTON THE TOWN IS TILTED 9309150127 930915 WORLD MARKETS TOKYO STOCKS ARE HAMMERED AHEAD OF HOLIDAY FUTURES ACTIVITY LEADS SHARES HIGHER IN LONDON A WALL STREET JOURNAL NEWS ROUNDUP PROFITTAKING AHEAD OF A MARKET HOLIDAY HAMMERED TOKYO STOCKS TUESDAY WHILE LONDON PRICES ROSE A BIT FOLLOWING THE FUTURES MARKET HIGHER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11266 DOWN 037 REFLECTING DECREASES IN ASIA/PACIFIC AND US MARKETS AND A RISE IN EUROPEAN MARKETS ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 5846 UP 133 OR 23 WITH ST JUDE MEDICAL OF THE US POSTING A 73 GAIN IN ITS LOCAL CURRENCY OTHER SPECIALTY RETAILERS STOCKS TRAILED AT 11021 DOWN 318 OR 28 WITH HOME DEPOT OF THE US SLIDING 99 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 33013 MONDAY TO ITS HIGHEST CLOSE OF THE YEAR FELL A STEEP 20032 TO 2094779 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES UP FROM 28350 MILLION SHARES MONDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 721285 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH GAINED 1701 POINTS MONDAY LOST 1418 TO 168033 THE DECLINE WAS ATTRIBUTED TO REDUCED CERTAINTY THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE SOON AS WELL AS A NEW ROUND OF JITTERS AS THE YEN REASSERTED ITSELF AGAINST THE DOLLAR BEHIND THE SHAKY SENTIMENT ABOUT A RATE EASING WERE REMARKS LATE MONDAY BY BANK OF JAPAN GOV YASUSHI MIENO THAT THE CENTRAL BANK ABSOLUTELY ISN'T CONSIDERING A CUT IN THE OFFICIAL DISCOUNT RATE AT PRESENT WIDESPREAD SPECULATION THAT THE CENTRAL BANK WILL LOWER THE DISCOUNT RATE SOON FROM ITS CURRENT 250 HAS UNDERPINNED THE SOLID GAINS OF THE PAST MONTH IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX ROSE 32 TO 30280 THE FT 30 INDEX SLIPPED 06 TO 23541 VOLUME TOTALED 5931 MILLION SHARES COMPARED WITH 5853 MILLION THE PREVIOUS DAY THE CASH MARKET FOLLOWED FUTURES TRADING ACTIVITY FOR MUCH OF THE DAY THE FUTURES MARKET OPENED AT A DISCOUNT TO THE CASH MARKET LEADING SOME FUTURES TRADERS TO TAKE A BEARISH VIEW THE FUTURES TRADERS THEN SOLD CONTRACTS SHORTBETTING ON A PRICE DECLINE ONLY TO BE SQUEEZED WHEN THE FUTURES MARKET BEGAN TO RISE MEANWHILE US AUGUST INFLATION DATA WORKED AGAINST THE FUTURESRELATED RISE IN FRANKFURT SHARES GAINED SLIGHTLY IN SLOW DEALINGS THE DAX 30STOCK INDEX OF BLUECHIPS WHICH ROSE 1113 POINTS MONDAY CLIMBED 8 TO 188057 YESTERDAY'S TRADING WAS THIN WITH THE PROSPECT OF EXPIRATIONS ON THE FUTURES EXCHANGE TOMORROW AND FRIDAY KEEPING SOME INVESTORS AWAY HOWEVER THE DOLLAR'S STRENGTHENING LENT SOME SUPPORT TO THE MARKET A RISE IN THE DOLLAR IS GOOD NEWS FOR THE GERMAN COMPANIES THAT REGISTER A LARGE PART OF THEIR SALES IN THE US CURRENCY THE STRONGER DOLLAR LIFTED MOST OTHER EUROPEAN MARKETS AS WELL IN PARIS STOCKS ENDED HIGHER IN THIN ACTIVITY THOUGH THEY GAVE UP SOME GROUND TOWARD THE END OF THE SESSION RENEWED INTERESTRATE OPTIMISM LINKED TO THE FRENCH FRANC'S SUDDEN APPRECIATION AGAINST THE MARK HELPED SUPPORT PRICES SOME ANALYSTS ARE PREDICTING AN EASING BY THE BANK OF FRANCE AS EARLY AS TOMORROW DURING THE REGULAR SECURITIES REPURCHASE AGREEMENT THE LATE CORRECTION CAME MOSTLY IN RESPONSE TO EARLY WEAKNESS ON WALL STREET TUESDAY IN AMSTERDAM STOCKS ADVANCED AS GAINS IN LONDON AND NEW YORK'S STRONG FINISH MONDAY COMBINED WITH THE DOLLAR'S STRENGTH IN MILAN SHARES ADDED 15 IN A TECHNICAL REBOUND AHEAD OF THE END OF THE TRADING CYCLE TODAY IN MADRID EQUITIES LEAPT 12 ON ARBITRAGE TRADING IN STOCKS THAT TRADE IN NEW YORK SPANISH COMPANIES THAT ARE ALSO LISTED IN NEW YORK SAW A WAVE OF BUYING AS PLAYERS SWITCHED OUT OF THE USLISTED STOCKS AND INTO THE MADRIDLISTED STOCKS AS THE DOLLAR GAINED ON THE PESETA THOSE COMPANIES ARE ALL HEAVYWEIGHT BLUECHIPS IN MADRID AND LIFTED THE MARKET THE ACTIVITY OVERWHELMED INITIAL DISAPPOINTMENT THAT THE BANK OF SPAIN LEFT ITS BENCHMARK INTEREST RATE UNCHANGED AT 10 DURING ITS 7TO12DAY REPURCHASE TENDER EARLIER YESTERDAY IN ZURICH SHARE PRICES ROSE 1 ON SOME SCATTERED BUYING IN BLUECHIPS THE MARKET GOT AN EARLY BOOST FROM THE SLIGHTLY FIRMER DOLLAR BUT GAVE BACK SOME OF ITS GAINS LATER ON US ECONOMIC DATA DEEMED BEARISH FOR THE DOLLAR MOST ASIAN AND PACIFIC MARKETS FINISHED LOWER IN SYDNEY PRICES FELL SHARPLY ON THE BACK OF A WEAKER GOLD PRICE AND A DECLINE IN THE AUSTRALIAN DOLLAR TO NEW LOWS AGAINST THE US DOLLAR DOMESTIC AND OVERSEAS INVESTORS WERE NERVOUS ABOUT THE CURRENCY'S VOLATILITY BECAUSE OF THE ECONOMY'S HEAVY RELIANCE ON COMMODITY EXPORTS MANY OF THEM DENOMINATED IN FOREIGN CURRENCIES IN HONG KONG SHARES EDGED DOWN IN A SLEEPY SESSION ONLY PROPERTY STOCKS POSTED GAINS WHILE BANKS LOST GROUND AND UTILITIES AND COMMERCIAL AND INDUSTRIAL ISSUES WERE NARROWLY LOWER SINGAPORE SHARES FINISHED MIXED BUT SPECULATIVE MALAYSIAN OVERTHECOUNTER SHARES ROSE IN EXTREMELY HEAVY DEALINGS IN SEOUL STOCKS DROPPED ON DISAPPOINTMENT OVER THE MARKET'S PROSPECTS THE LATE SELLOFF CAME AS THE MARKET FAILED TO CONVINCE INVESTORS THAT IT COULD HOLD AT KEY SUPPORT LEVELS THE SELLING WAS ALSO FED BY RUMORS THAT SOME CASHRICH INDIVIDUAL INVESTORS ABANDONED THEIR ATTEMPTS TO PROP UP SHARE PRICES IN TAIPEI PRICES AGAIN CLOSED LOWER IN THIN TRADING BECAUSE OF AN ABSENCE OF FRESH INCENTIVES IN MANILA STOCKS WEAKENED IN ACTIVE DEALINGS AS INVESTORS TOOK PROFITS FROM THE MARKET'S RECENT GAINS ALTHOUGH THE MARKET'S DECLINE WAS LARGELY GUIDED BY RETAIL INVESTORS THE WITHDRAWAL OF INSTITUTIONAL INVESTORS ALSO UNDERMINED BLUECHIPS IN WELLINGTON SHARES FINISHED WEAKER IN BUSY TRADING THE BANK OF NEW ZEALAND'S LATEST SET OF ECONOMIC FORECASTS LIFTED STOCKS EARLY IN THE SESSION BUT THE MARKET WAS THEN PUSHED LOWER IN LINE WITH A WEAKENING ON THE AUSTRALIAN BOURSE 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 9309150126 930915 INTERNATIONAL VOLKSWAGEN UNIT IN SPAIN REQUIRES 1 BILLION BAILOUT BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG SAID ITS SPANISH SUBSIDIARY IS FACING MUCH LARGER THAN EXPECTED LOSSES AND WILL NEED A NEARLY 1 BILLION BAILOUT BY THE PARENT TO RESCUE THE TROUBLED SEAT SA UNIT VW SAID IT WILL GIVE SEAT A 15 BILLION MARK 9325 MILLION CASH INJECTION IN EXCHANGE FOR TRANSFERRING SEAT'S PAMPLONA PLANT AND ITS FINANCE COMPANY DIRECTLY ONTO VW BOOKS OFFICIALS OF THE GERMAN AUTO MAKER YESTERDAY COULDN'T SPECIFY TO WHAT EXTENT THE 125 BILLION MARKS OF PROJECTED 1993 LOSSES AT SEAT WERE ALREADY INCLUDED IN VW'S REPORTED FIRST HALF DEFICIT OF 16 BILLION MARKS BUT A VW SPOKESMAN NOTED THAT THE FINANCIAL SITUATION AT SEAT WORSENED DRAMATICALLY SINCE AUGUST THE SEAT LOSS PREDICTED FOR THIS YEAR INDICATES THE UNIT IS LOSING MORE THAN 1200 ON EACH CAR IT PRODUCES THE REVELATIONS FROM SEAT COULD EXPLAIN WHY VW CHAIRMAN FERDINAND PIECH WHO WAS BROUGHT IN AT THE BEGINNING OF THE YEAR TO TURN THE COMPANY AROUND HAS IN RECENT WEEKS BACKED OFF OF EARLIER PROMISES THAT VW WOULD BREAK EVEN IN 1993 VW ATTRIBUTED THE SWELLING LOSSES AT SEAT TO FACTORS BEYOND THE COMPANY'S CONTROL SUCH AS HIGH STARTUP COSTS FOR NEW MODELS AND THE UNEXPECTEDLY STEEP DROP IN EUROPEAN AND SPANISH AUTO SALES SEAT ALSO WAS HURT BY THE DEVALUATION OF THE PESETA BECAUSE IT HAS A LARGE NUMBER OF LOANS DENOMINATED IN MARKS RELATED TO THE BUILDING OF A NEW FACTORY THE SPANISH UNIT ALSO RECEIVES ROUGHLY 50 OF ITS COMPONENT PARTS THROUGH CENTRAL GERMAN PURCHASING AGGRAVATING THE CURRENCY RISK UNFORTUNATELY IT SEEMS TO BE ANOTHER CASE OF VW FINDING OUT RATHER LATE ABOUT PROBLEMS AT OVERSEAS SUBSIDIARIES SAID JOHN LAWSON RESEARCH DIRECTOR AT DRI/MCGRAW HILL IN LONDON CITING PREVIOUS PROBLEMS AT VW'S BRAZILIAN AND US PLANTS THAT WERE LATE IN COMING TO THE ATTENTION OF THE COMPANY'S HEADQUARTERS IN WOLFSBURG GERMANY A VW SPOKESMAN STRESSED THAT AS SOON AS MR PIECH WAS INFORMED THIS MONTH OF THE TROUBLES AT SEAT HE COMMISSIONED A SPECIAL AUDIT OF THE DIVISION THE SEAT MANAGEMENT BOARD IS NOW DRAFTING A RESTRUCTURING PLAN THAT COULD INVOLVE RADICAL PERSONNEL MEASURES VW SAID 9309150125 930915 WHAT'S NEWS WORLDWIDE ISRAEL AND JORDAN AGREED TO AN AGENDA FOR PEACE NEGOTIATIONS A DAY AFTER THE SIGNING OF AN ISRAELIPLO ACCORD JORDAN AND ISRAEL TOOK A SIGNIFICANT STEP TOWARD RESOLVING THEIR DIFFERENCES BY INITIALING A PEACE AGENDA AT THE STATE DEPARTMENT MOROCCO MEANWHILE MOVED TOWARD FORMAL RECOGNITION OF ISRAEL AS KING HASSAN II MET IN RABAT WITH ISRAELI PRIME MINISTER RABIN ON CAPITOL HILL PLO LEADER ARAFAT WHO UNTIL THIS WEEK WAS PROHIBITED FROM VISITING WASHINGTON HUDDLED WITH US LAWMAKERS TO SEEK AID FOR THE PALESTINIANS ARAFAT REAFFIRMED THAT HE INTENDS TO SEE A PALESTINIAN STATE ESTABLISHED AND TO TAKE CONTROL OF EAST JERUSALEM WHICH HE DESCRIBED AS OCCUPIED TERRITORY A GROUP OF GOP SENATORS WILL UNVEIL A HEALTH PLAN TODAY THAT WOULD BE FINANCED THROUGH MEDICARE AND MEDICAID SAVINGS SIMILAR TO THOSE IN CLINTON'S PLAN THE MOSTLY MODERATE REPUBLICANS INCLUDING MINORITY LEADER DOLE WILL PROPOSE A SYSTEM THAT SHUNS MUCH OF THE REGULATION IN THE WHITE HOUSE PLAN A BRITISH TOURIST WAS SLAIN IN FLORIDA AND GOV CHILES REQUESTED FINANCIAL AID FROM CLINTON TO HELP HALT ATTACKS ON VACATIONERS YESTERDAY'S SHOOTING NEAR TALLAHASSEE MARKED THE SECOND KILLING OF A FOREIGNER IN A WEEK AND THE NINTH SINCE LAST FALL STATE TOURISM OFFICIALS SUSPENDED ALL OVERSEAS ADS FOR 30 DAYS A STUDY IN CHINA PROVIDED EVIDENCE THAT NUTRIENTS IN FRUITS VEGETABLES AND GRAINS MAY HELP PREVENT CANCER THE STUDY SPONSORED BY THE US NATIONAL CANCER INSTITUTE FOUND THAT THE CANCER DEATH RATE WAS REDUCED AMONG MIDDLEAGED PEOPLE WHO WERE GIVEN VITAMIN E SELENIUM AND BETA CAROTENE BREAST CANCER MORTALITY IS MUCH HIGHER FOR PROFESSIONAL WOMEN WHO DELAY CHILDBIRTH DURING EDUCATION AND CAREERBUILDING PHASES OF LIFE THE CENTERS FOR DISEASE CONTROL AND PREVENTION REPORTED OFFICIALS SAID THIS SEGMENT OF WOMEN SUFFERS A 50 TO 100 GREATERTHANEXPECTED RISK OF DYING FROM BREAST CANCER EDUCATION SECRETARY RILEY OUTLINED HIS PLAN TO CHANGE THE WAY MONEY IS DISTRIBUTED TO SCHOOL DISTRICTS CALLING FOR MORE FEDERAL DOLLARS TO BE ALLOCATED FOR THE POOREST SCHOOLS HE IS SEEKING TO SHIFT 500 MILLION TO THE NATION'S POOREST SCHOOLS REPRESENTING A 15 INCREASE IN FEDERAL EDUCATION FUNDS THE SENATE APPROVED A 261 BILLION DEFENSE BUDGET THAT TOUGHENS CLINTON'S POLICY ON HOMOSEXUALS IN THE MILITARY AND HELPS COMMUNITIES HURT BY POSTCOLD WAR CUTBACKS THE LEGISLATION PRESERVES SEVERAL MAJOR WEAPONS INCLUDING NAVY DESTROYERS AND TRIDENT SUB MISSILES JURY SELECTION BEGAN IN THE WORLD TRADE CENTER BOMBING CASE IN NEW YORK WITH THE FEDERAL JUDGE SAYING HE BELIEVED THE ACTUAL TRIAL WILL LAST 12 TO 16 WEEKS THE FOUR DEFENDANTS ARE ACCUSED OF CONSPIRING TO PLANT THE BOMB THAT KILLED SIX PEOPLE AND INJURED 1000 WHEN IT EXPLODED ON FEB 26 SHEVARDNADZE RESIGNED AS GEORGIA'S POLITICAL LEADER THE FORMER SOVIET FOREIGN MINISTER LATER TOLD A CROWD IN TBILISI HE MIGHT WITHDRAW HIS RESIGNATION IF LAWMAKERS APPROVE HIS REQUESTED STATE OF EMERGENCY AND AGREE TO SUSPEND THEIR WORK FOR THREE MONTHS CHINA RELEASED LONGTIME POLITICAL PRISONER WEI JINGSHENG WHOSE CRIME WAS TO PUT UP POSTERS CRITICIZING LEADER DENG XIAOPING WEI'S RELEASE SIX MONTHS BEFORE HIS 15YEAR SENTENCE WAS DUE TO END CAME NINE DAYS BEFORE THE INTERNATIONAL OLYMPIC COMMITTEE MEETS TO SELECT A HOST CITY FOR THE GAMES IN THE YEAR 2000 QUEBEC'S PREMIER BOURASSA SAID HE WON'T SEEK ANOTHER TERM AS HEAD OF THE CANADIAN PROVINCE'S LIBERAL PARTY THE ANNOUNCEMENT CAME AFTER MONTHS OF SPECULATION THAT BOURASSA DIAGNOSED WITH CANCER IN 1990 WOULD STEP DOWN A SENATE APPROPRIATIONS PANEL APPROVED A LABOR HEALTH AND EDUCATION BUDGET THAT WOULD OVERTURN LONGSTANDING FEDERAL RESTRICTIONS ON MEDICAIDFUNDED ABORTIONS FOR POOR WOMEN THE MEASURE IS EXPECTED TO BE CHALLENGED DURING FLOOR DEBATE CHILDREN FREQUENTLY PERFORM MORE POORLY AT SCHOOL AND ARE AFFECTED BY A HIGHER INCIDENCE OF BEHAVIORAL PROBLEMS WHEN THEIR FAMILIES RELOCATE OFTEN A STUDY FOUND 9309150123 930915 TRAVEL DONOTRENT' LISTS TAG BAD DRIVERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL CARRENTAL COMPANIES ARE DEVELOPING BLACKLISTS OF BAD DRIVERS AS HAS BEEN WIDELY PUBLICIZED CAR COMPANIES SINCE LAST SUMMER HAVE BEEN ELECTRONICALLY CHECKING MOTOR VEHICLE DEPARTMENT RECORDS IN NEW YORK AND MORE RECENTLY IN FLORIDA TO SCREEN OUT HIGHRISK DRIVERS WHO RENT CARS IN THOSE STATES WHAT IS LESS WELL KNOWN IS THAT AT TWO MAJOR RENTAL COMPANIES HERTZ CORP AND NATIONAL CAR RENTAL SYSTEMS INC REJECTED DRIVERS ARE PLACED ON INTERNAL DONOTRENT LISTS THAT PREVENT THEM FROM RENTING CARS ANYWHERE IN THE COUNTRY EVEN IN STATES THAT DON'T YET HAVE COMPUTER CHECKS AVIS INC SAYS IT LIKELY WILL DEVELOP THE SAME TYPE OF LIST THESE BLACKLISTS GREATLY EXPAND THE SWEEP OF THE CARRENTAL COMPANIES' CRACKDOWN AND INDUSTRY EXECUTIVES SAY IMPROVE SAFETY ON THE ROAD THE LISTS WHICH HAVE EXISTED ABOUT A YEAR WILL GROW AS RENTAL COMPANIES CONDUCT DRIVER CHECKS IN MORE REGIONS INCLUDING CALIFORNIA AND WASHINGTON DC THIS MONTH AND POSSIBLY PENNSYLVANIA BY THE END OF THE YEAR BUT CRITICS INCLUDING SOME CARRENTAL EXECUTIVES SAY THESE LISTS CAN BE ABUSED AND ARE SUBJECT TO ERROR INDEED BUDGET RENT A CAR CORP RECENTLY ABANDONED ITS BLACKLIST BECAUSE THE INFORMATION COULDN'T BE KEPT CURRENT WE DIDN'T FEEL COMFORTABLE USING A LIST WHERE INFORMATION ON DRIVING RECORDS CHANGES SO RAPIDLY SAYS DENNIS STUTH DIRECTOR OF RISK MANAGEMENT AT BUDGET A UNIT OF BEECH HOLDINGS CORP HERTZ AND NATIONAL HOWEVER SAY THEY WOULD BE REMISS IF THEY PERMITTED A REJECTED DRIVER FROM SAY NEW YORK TO RENT A CAR IN TENNESSEE OR TEXAS IF WE DON'T WANT TO RENT TO SOMEONE IN ONE STATE AND WE KNOW THEY'RE HIGH RISK WE CANNOT IN GOOD CONSCIENCE RENT TO THEM IN ANOTHER STATE A HERTZ SPOKESMAN SAYS THE CONTROVERSY STEMS FROM RENTALCOMPANIES' EFFORTS TO DETERMINE THE LIABILITY RISK OF CUSTOMERS BY TAPPING INTO STATE DRIVING RECORDS VIRTUALLY ALL MAJOR CAR COMPANIES CHECK RENTERS WHO HAVE A DRIVER'S LICENSE IN NEW YORK OR FLORIDA AND WHO RENT AUTOS IN EITHER OF THOSE TWO STATES ABOUT 4 TO 8 OF THESE DRIVERS ARE REJECTED FOR SUCH MISDEEDS AS USING AN INVALID LICENSE OR HAVING BEEN CONVICTED FOR DRIVING WHILE INTOXICATED WITHIN THE PAST SIX YEARS DRIVERS IN NEW YORK AND FLORIDA ARE BEING SCREENED IN PART BECAUSE CAR COMPANIES SAY THEIR STUDIES SHOW THEY REPRESENT THE GREATEST LIABILITY RISKS ANOTHER FACTOR IS TECHNOLOGY SO FAR ONLY NEW YORK OHIO FLORIDA AND MARYLAND PROVIDE DRIVING RECORDS ELECTRONICALLY FOR A FEE TO THE CAR COMPANIES ALTHOUGH MORE STATES INCLUDING CALIFORNIA ARE PREPARING TO DO SO CAR COMPANIES PAY AN ELECTRONICS COMMUNICATIONS COMPANY TML INFORMATION SERVICES INC IN NEW YORK IS THE MOST WIDELY USED TO RUN THE DRIVER'S LICENSE CHECK WHILE CUSTOMERS WAIT AT THE COUNTER THE INDUSTRY HAS BEEN PRAISED FOR CRACKING DOWN ON UNLICENSED OR CLEARLY RECKLESS DRIVERS BUT SOME CRITICS SAY THE REQUIREMENTS TO RENT ARE UNDULY STRICT FOR EXAMPLE UNDER GUIDELINES DEVELOPED BY HERTZ AND COPIED BY THE REST OF THE INDUSTRY CUSTOMERS WHO HAVE TWO OR MORE ACCIDENTS IN THE PAST THREE YEARS CAN'T RENT A CAR REGARDLESS OF FAULT INDUSTRY OFFICIALS SAY THEY USE THE SAME RISK ANALYSIS AS THE INSURANCE INDUSTRY MANY CARRENTAL COMPANIES HAVE LONG KEPT DONOTRENT LISTS OF PEOPLE WHO HAVEN'T PAID THEIR BILLS BUT BLACKLISTS FOR BAD DRIVERS ARE THE LATEST TWIST THE TWO COMPANIES WITH THE LISTS INDUSTRY LEADER HERTZ A UNIT OF PARK RIDGE CORP AND NATIONAL A UNIT OF GENERAL MOTORS CORP WON'T SAY HOW MANY NAMES THEY HAVE AMASSED BUT THEY SAY THE NAMES ARE PROPRIETARY AND NOT SHARED WITH ANYONE ELSE HERTZ AND NATIONAL SAY THEY NOTIFY TURNEDAWAY DRIVERS BY MAIL THAT THEY WILL BE UNABLE TO RENT CARS FROM THEM ANYWHERE IN THE COUNTRY UNTIL THEY REGAIN ELIGIBILITY SOME DRIVERS CAN REGAIN ELIGIBILITY ONLY BY WAITING UNTIL THEIR RECORD IS CLEAR OTHER CUSTOMERS WHO FORGOT TO RENEW THEIR LICENSE CAN FIX THAT PROBLEM PROMPTLY BY VISITING THEIR MOTOR VEHICLE DEPARTMENT A MORE DIFFICULT PROBLEM ARISES IN HOW CUSTOMERS ONCE THEY HAVE CLEARED THEIR DRIVING RECORDS CAN GET THEIR NAMES OFF A CARRENTAL BLACKLIST FOR EXAMPLE WITHOUT ACTION BY THE DRIVER A PERSON COULD REMAIN ON THE LIST INDEFINITELY COMPUTERS AT HERTZ AND NATIONAL AREN'T LINKED TO THE MOTOR VEHICLE DEPARTMENTS SO THE LISTS AREN'T AUTOMATICALLY UPDATED AS DRIVING RECORDS CHANGE THUS AS BUDGET DISCOVERED THE NAMES OFTEN DON'T REFLECT THE CORRECT STATUS OF EACH PERSON'S DRIVING RECORD THAT IS WHY THRIFTY RENTACAR SYSTEM INC A UNIT OF CHRYSLER CORP RECENTLY REJECTED KEEPING A LIST EVEN THOUGH IT IS CHECKING DRIVERS IN NEW YORK AND FLORIDA IF SOMEONE GETS ON THE LIST YOU HAVE AN OBLIGATION TO MAKE SURE THAT THE INFORMATION IS CORRECT A SPOKESWOMAN SAYS HERTZ CONCEDES THE PROBLEM EXISTS THE ISSUE HAS COME UP AND WE ARE DEVELOPING SOME MECHANISM TO TRY TO CLEAR ITS LIST OF DRIVERS WHO SHOULDN'T BE ON IT A SPOKESMAN SAYS NATIONAL SAYS REJECTED CUSTOMERS WHO REGAIN ELIGIBILITY MUST CALL THE COMPANY TO HAVE THEIR NAMES CLEARED THEY HAVE TO CONTACT US TO CHANGE IT SUCH STEPS WOULDN'T BE NECESSARY IF HERTZ AND NATIONAL COULD SIMPLY CHECK THE MOTOR VEHICLE RECORDS EACH TIME A CAR WAS RENTED OUT OF STATE BUT THE CHECKS AREN'T CHEAP THE COMPANIES MUST PAY THE MOTOR VEHICLE DEPARTMENT IN NEW YORK 4 FOR EACH CHECK OR 241 IN FLORIDA PLUS THE FEE CHARGED BY TML CALIFORNIA WILL CHARGE 5 FOR A CHECK ALSO OUTOFSTATE CHECKS ARE DIFFICULT HERTZ AND NATIONAL SAY SOME CONSUMER ADVOCATES SAY BLACKLISTS OF ANY KIND ARE REPREHENSIBLE BECAUSE THERE IS NO GUARANTEE OF HOW THE LISTS WILL BE USED ANOTHER PROBLEM SAYS ED PERKINS EDITOR OF CONSUMER REPORTS TRAVEL LETTER A SAN FRANCISCO NEWSLETTER IS THAT CUSTOMERS HAVE LITTLE RECOURSE ONCE ON THE LIST WHAT ASSURANCES ARE THERE ABOUT THE FAIRNESS OF THE LIST HE ASKS IN THE INSURANCE BUSINESS THERE ARE REGULATORY OVERSIGHTS BUT THERE ARE NO SUCH OVERSIGHTS IN CAR RENTALS 9309150122 930915 NOTABLE & QUOTABLE FROM THE SEPTEMBER HARPER'S BARD COLLEGE PRESIDENT LEON BOTSTEIN SPEAKING AT A FORUM TITLED NEW RULES ABOUT SEX ON CAMPUS IT'S INTERESTING I WOULD ARGUE THAT STUDENTS THROUGH THE 1960S ACCEPTED THE IDEA THAT HIGHER EDUCATION WAS ABOUT TRYING ON THE CLOTHES OF ADULTHOOD SO THEY EAGERLY ACCEPTED RESPONSIBILITY FOR THEIR ACTIONS IF THEY GOT INVOLVED WITH SOMEONE IF THEY GOT DRUNK IF THEY HURT SOMEONE THEY SOUGHT TO TAKE RESPONSIBILITY TODAY'S STUDENTS BELIEVE THEY ARE NOT RESPONSIBLE QUITE THE OPPOSITE THEY FEEL THEY ARE OWED SOMETHING AN ENTITLEMENT TO A REWARD FROM DISTRESS AND WHEN THEY ARE HURT THEY ARE MORE PRONE TO CALL THEMSELVES VICTIMS LIFE AS THE THEOLOGIANS HAVE TAUGHT US FOR A LONG TIME IS INHERENTLY VICTIMIZING SO WHEN SOMETHING GOES WRONG A STUDENT FEELS EMPOWERED TO DISTRIBUTE THE BLAME ELSEWHERE 9309150121 930915 NEW YORK POST SALE APPROVED NEW YORK THE NEW YORK POST SAID THE CHIEF FEDERAL BANKRUPTCY JUDGE FOR THE SOUTHERN DISTRICT OF NEW YORK APPROVED NEWS CORP'S ACQUISITION OF THE PAPER FOR MORE THAN 25 MILLION IN CASH AND ASSUMED DEBT AND LIABILITIES THE POST SAID IT EXPECTS TO COMPLETE THE SALE BY THE END OF THE MONTH IT IS PENDING RATIFICATION OF THREE LABOR CONTRACTS AND COMPLETION OF CERTAIN LEASE NEGOTIATIONS 9309150120 930915 TECHNOLOGY & HEALTH MERCK DROPS FINAL BID TO DEVELOP DRUG FOR AIDS IN FACE OF VIRAL RESISTANCE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL MERCK & CO DROPPED ITS FINAL EFFORTS TO DEVELOP A ONCE HIGHLY PROMISING AIDS DRUG NOTING THAT USE OF THE DRUG CAUSES THE AIDS VIRUS TO MUTATE AND BECOME RESISTANT THE NEWS IS FURTHER EVIDENCE OF THE PROFOUND OBSTACLES FACING RESEARCHERS TRYING TO DEVELOP NEW MEDICINES AGAINST HUMAN IMMUNODEFICIENCY VIRUS OR HIV WHICH CAUSES AIDS ABOUT A DOZEN PHARMACEUTICAL COMPANIES INCLUDING MERCK ARE CONTINUING TO CHASE AFTER NEW AIDS MEDICINES BUT VIRAL RESISTANCE HAS BEEN AN ESPECIALLY DIFFICULT ISSUE TO OVERCOME IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MERCK ROSE 75 CENTS TO 32125 THE MERCK DRUG KNOWN AS L661 WAS DEVELOPED BY MERCK IN AN UNUSUALLY INTENSE AND SWIFT RESEARCH EFFORT BETWEEN 1990 AND 1991 THE COMPANY THEN RUSHED THE DRUG INTO HUMAN TESTS BUT IN LATE 1991 MERCK'S RESEARCHERS WERE DEALT A SEVERE SETBACK WHEN IT WAS DETERMINED THAT THE VIRUS MUTATED INTO A RESISTANT STRAIN WITHIN WEEKS OF THE DRUG'S BEING ADMINISTERED TO PATIENTS SINCE THEN MERCK HAS ATTEMPTED TO REVIVE L661 BY COMBINING IT WITH AZT WHICH WORKS AGAINST THE VIRUS THROUGH A DIFFERENT MECHANISM AND BY SIGNIFICANTLY BOOSTING THE DRUG'S DOSAGE IN A STATEMENT FROM ITS WHITEHOUSE STATION NJ HEADQUARTERS MERCK SAID RECENT ANALYSIS OF THE COMBINATION STUDIES CONCLUDED THAT THE VIRAL RESISTANCE PROBLEM IS SO CLINICALLY SIGNIFICANT THAT DEVELOPMENT SHOULD BE DISCONTINUED THE DRUG WORKS BY BLOCKING THE ACTION OF REVERSE TRANSCRIPTASE AN ENZYME CRUCIAL TO VIRAL REPLICATION AZT BLOCKS THE SAME ENZYME BUT IN A DIFFERENT WAY IT'S VERY DEPRESSING NEWS SAID MICHAEL BECKER A NEW YORK LAWYER AND AIDS ACTIVIST WHO CLOSELY MONITORS DRUG RESEARCH EFFORTS BOEHRINGER INGELHEIM CORP RIDGEFIELD CONN IS CONTINUING TO CONDUCT STUDIES OF A DRUG CALLED NEVERAPINE THAT WORKS IN A FASHION SIMILAR TO MERCK'S L661 AN OFFICIAL AT THE US AFFILIATE OF BOEHRINGER INGELHEIM INTERNATIONAL GMBH OF GERMANY SAID ITS RESEARCH SUGGESTS THE DRUG'S HIGHER POTENCY THAN THE MERCK DRUG MAY HELP IT OVERCOME VIRAL RESISTANCE IN ANOTHER BID TO SURMOUNT THE RESISTANCE ISSUE NEVERAPINE ALSO IS BEING TESTED IN A FEDERALLY SPONSORED STUDY IN A SOCALLED TRIPLE COMBINATION WITH AZT AND DDI AN AZTLIKE DRUG SOLD BY BRISTOLMYERS SQUIBB CO NEW YORK MEANWHILE A DOZEN DRUG MAKERS STILL ARE TRYING TO FIND NEW TYPES OF AIDS MEDICINES RECENTLY MERCK ABBOTT LABORATORIES UPJOHN CO HOFFMANNLA ROCHE INC A UNIT OF ROCHE HOLDING LTD OF SWITZERLAND AND DUPONTMERCK A JOINT VENTURE OF DUPONT CO AND MERCK HAVE BEEN TESTING IN HUMANS A DRUG THAT BLOCKS ANOTHER VIRAL ENZYME CALLED PROTEASE RESULTS OF THOSE STUDIES HAVE YET TO SHOW WHETHER THAT CLASS OF DRUG WILL PROVE SUCCESSFUL 9309150119 930915 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY HOW RUSSIA STILL ABETS MIDEAST TERROR BY JOHN P HANNAH WITH THIS WEEK'S SIGNING OF LANDMARK AGREEMENTS BETWEEN ISRAEL AND THE PALESTINIANS AND BETWEEN ISRAEL AND JORDAN ALL EYES NOW TURN TOWARD SYRIA WILL PRESIDENT HAFEZ ASSAD SEIZE UPON THE CLIMATE OF RECONCILIATION TO MAKE ISRAEL A PEACE OFFER IT CAN'T REFUSE OR WILL HE CONTINUE HIS DOUBLE GAME OF NEGOTIATING ON THE ONE HAND WHILE SUPPORTING TERROR AND ARMING FOR WAR ON THE OTHER IN THIS RESPECT A PARTICULARLY CURIOUS AND TROUBLING INCIDENT HAPPENED JUST OVER FIVE WEEKS AGO ON AUG 8 RUSSIAN TRANSPORT PLANES TOUCHED DOWN IN DAMASCUS THE CAPITAL OF SYRIA AND UNLOADED THEIR DEADLY CARGO COMPONENTS FOR SCUDC BALLISTIC MISSILES CAPABLE OF CARRYING CHEMICAL WEAPONS AND REACHING TARGETS DEEP INSIDE ISRAEL IN A BIZARRE TWIST THE MISSILE PARTS WERE NOT EVEN OF RUSSIAN ORIGIN RATHER THEY CAME FROM NORTH KOREA THE RUSSIANS IT SEEMS ADOPTING A NOVEL POSTCOLD WAR ROLE FOR THEMSELVES WERE MERELY ACTING AS DELIVERY MEN RUSSIA'S READINESS TO GREASE THE MILITARY PIPELINE THAT RUNS BETWEEN NORTH KOREA'S STALINISTS AND SYRIA'S DICTATOR SHOULD TROUBLE US POLICY MAKERS FOR ANY NUMBER OF REASONS BOTH NORTH KOREA AND SYRIA REMAIN CHARTER MEMBERS OF THE STATE DEPARTMENT'S ROGUES' GALLERY PROMINENTLY MENTIONED ON ITS LIST OF MAJOR STATE SPONSORS OF INTERNATIONAL TERRORISM WORSE YET IF HISTORY IS ANY GUIDE PART OF THE SCUDC CONSIGNMENT ALMOST CERTAINLY FOUND ITS WAY TO IRAN TERRORISM'S DE FACTO GLOBAL HEADQUARTERS RUSSIA'S ACTIONS FLEW IN THE FACE OF MAJOR US DIPLOMATIC INITIATIVES UNDER WAY AT THE TIME WITH NORTH KOREA TO STOP ITS EFFORTS TO DEVELOP NUCLEAR WEAPONS AND MARKET ITS BALLISTIC MISSILES TO THE WORLD'S HOT SPOTS ESPECIALLY THE MIDDLE EAST WITH SYRIA TO BROKER A BREAKTHROUGH IN PEACE TALKS WITH ISRAEL INDEED THE RUSSIAN SHIPMENT CAME JUST TWO DAYS AFTER SECRETARY OF STATE WARREN CHRISTOPHER DEPARTED DAMASCUS FOLLOWING A WEEK OF INTENSE EFFORTS TO RESURRECT ARABISRAELI NEGOTIATIONS ALSO TROUBLING IS THE FACT THAT THE SCUDC DELIVERY CAME AMID A FLURRY OF NEW RUSSIAN PROMISES TO ABIDE BY THE MISSILE TECHNOLOGY CONTROL REGIME MTCR A MULTINATIONAL EFFORT TO RESTRICT BALLISTIC MISSILE PROLIFERATION INDEED RUSSIA'S PRIME MINISTER DUTIFULLY MADE SUCH PROMISES AGAIN JUST TWO WEEKS AGO IN WASHINGTON WINNING LUCRATIVE PLEDGES OF US SPACE COOPERATION IN RETURN BUT THE MTCR CLEARLY RULES OUT THE TRANSFER OF SCUDCS WHOSE 300MILE RANGE FAR EXCEEDS THE REGIME'S LIMITS WHILE A CASE MIGHT BE MADE THAT SIMPLY TRANSPORTING AS OPPOSED TO ACTUALLY SUPPLYING THE MISSILE COMPONENTS DOES NOT VIOLATE THE REGIME'S LETTER IT MOST CERTAINLY MAKES A MOCKERY OF ITS SPIRIT THE EFFORT TO SOLICIT RUSSIAN INVOLVEMENT IN THIS DEADLY DEAL MAKES EMINENT SENSE TWICE BEFORE NORTH KOREA SOUGHT WITH GREAT TROUBLE TO USE ITS OWN SURFACE SHIPS TO DELIVER SCUDCS TO SYRIA AND IRAN ON THE FIRST OCCASION IN LATE 1991 ISRAELI THREATS TO SINK NORTH KOREA'S FREIGHTER FORCED IT TO RETREAT BEFORE IT COULD DOCK IN SYRIA THEN IN THE SPRING OF 1992 A SECOND ATTEMPT NARROWLY SUCCEEDED DESPITE THE THREAT OF INTERCEPTION BY THE US NAVY WHEN THE NORTH KOREAN VESSEL UNEXPECTEDLY DIVERTED TO AN IRANIAN PORT FROM THERE IRANIAN PLANES FLEW SOME OF THE MISSILES TO DAMASCUS USING RUSSIA AS A MIDDLEMAN OFFERS SEVERAL ADVANTAGES FIRST LOGISTICALLY RUSSIA'S MASSIVE AERIAL TRANSPORT CAPABILITIES PERMIT THE SCUDC PARTS TO BE MOVED ENTIRELY BY AIR RATHER THAN SHIP THIS DRAMATICALLY SPEEDS UP DELIVERY TIME WHILE REDUCING OPPORTUNITIES FOR THIRDPARTY DETECTION AND SABOTAGE SECOND FROM A POLITICAL STANDPOINT RUSSIAN INVOLVEMENT PROVIDES THE OPERATION WITH A FOOLPROOF SECURITY GUARANTEE IT IS IMPOSSIBLE TO IMAGINE THE US OR ISRAEL BLOWING A RUSSIAN PLANE OUT OF THE SKY MUCH LESS ONE BELONGING TO BORIS YELTSIN'S DEMOCRATIC RUSSIA APOLOGISTS FOR MR YELTSIN'S REGIME ARE QUICK TO EXPLAIN AWAY SUCH INCIDENTS THEY SUGGEST THAT ROGUE ELEMENTS IN RUSSIA'S MILITARYINDUSTRIAL COMPLEX ARE ACTING WITHOUT HIS KNOWLEDGE PERHAPS BUT IF TRUE THIS RAISES ITS OWN SET OF DEEPLY DISTURBING QUESTIONS ABOUT COMMAND AND CONTROL IN A COUNTRY STILL TARGETING THOUSANDS OF NUCLEAR WARHEADS AT AMERICAN CITIES EVEN IF WE ACCEPT THAT MR YELTSIN WAS INITIALLY UNAWARE OF THE OPERATION ANOTHER QUESTION ARISES WHY DIDN'T HE ORDER IT STOPPED WHEN HE WAS FINALLY INFORMED ISRAELI PRIME MINISTER YITZHAK RABIN SAID THAT SECRETARY CHRISTOPHER TOLD HIM ABOUT THE PENDING SCUD SHIPMENT DURING THE LATTER'S TRIP TO THE MIDDLE EAST AT LEAST 48 HOURS BEFORE THE ACTUAL DELIVERY WE CAN BE FAIRLY CERTAIN THEREFORE THAT THE US WAS IN TOUCH WITH AUTHORITIES IN MOSCOW AT LEAST THAT EARLY IN AN EFFORT TO STOP THE SHIPMENT DID MR YELTSIN MAKE AN EFFORT TO DO SO WAS HE TOO LATE WAS HE REBUFFED IF SO DID HE MOVE TO PUNISH THOSE RESPONSIBLE OR ON THE OTHER HAND DID HE REJECT THE US DEMARCHE AND ALLOW THE SCUDC DELIVERY TO PROCEED EITHER WAY THE IMPLICATIONS FOR WESTERN INTERESTS ARE TROUBLING FOR AT LEAST TWO REASONS FIRST AS CONCERNS THE MIDDLE EAST PEACE PROCESS TWO YEARS AGO THE DEMISE OF SYRIA'S SOVIET PATRON FORCED PRESIDENT ASSAD TO TALK PEACE WITH ISRAEL GETTING HIM TO FOLLOW IN THE FOOTSTEPS OF YASSER ARAFAT AND ACTUALLY MAKE PEACE WITH THE JEWISH STATE MEANS ENSURING THAT HIS MILITARY OPTION IN THE KREMLIN IS NOT NOW RESURRECTED A SECOND WORRY CONCERNS THE BROADER USRUSSIAN RELATIONSHIP PLAYING MATCHMAKER FOR NORTH KOREA AND SYRIA IS SIMPLY THE LATEST IN A SERIES OF ACTIONS SUGGESTING THAT USRUSSIAN RELATIONS FACE SOME TROUBLE AHEAD FROM ITS CONTRARIAN DIPLOMACY ON BOSNIA TO ITS GROWING PENCHANT FOR BULLYING ITS NEWLY INDEPENDENT NEIGHBORS FROM ITS EFFORTS IN JUNE TO SHIP ROCKETFUEL INGREDIENTS TO LIBYA TO ITS READINESS EARLIER THIS MONTH TO INITIAL ECONOMIC FRAMEWORK AGREEMENTS WITH SADDAM HUSSEIN ALL INDICATE THAT MOSCOW IS INCREASINGLY GUIDED BY A FOREIGN POLICY MUSE THAT IS NOT JUST DIFFERENT FROM AMERICA'S BUT OFTEN AT CROSS PURPOSES TO IT SHOULD THIS TREND CONTINUE IT COULD BE CAUSE FOR WORRY INDEED MR HANNAH DEPUTY DIRECTOR OF THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY WAS A MEMBER OF THE STATE DEPARTMENT'S POLICY PLANNING STAFF FROM 1991 TO 1993 9309150118 930915 INDUSTRY FOCUS US SUPERCOMPUTER MAKERS POISED FOR JAPANESE SALES TECHNOLOGY TRADE PRESSURE AND STIMULUS PLAN HELP GIVE THEM AN EDGE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER YEARS OF FRUSTRATION US SUPERCOMPUTER MAKERS MAY THIS YEAR GET THEIR BEST SHOT YET AT SELLING THEIR MACHINES TO THE JAPANESE GOVERNMENT THANKS TO A SUPERCOMPUTER SHOPPING SPREE PART OF JAPAN'S LAST BIG ECONOMIC STIMULUS PACKAGE AND INTENSIFIED US GOVERNMENT PRESSURE US COMPANIES HAVE MORE CHANCES THAN EVER BEFORE TO GET THEIR FOOT IN THE DOOR OF A MARKET THAT'S BEEN ESPECIALLY DIFFICULT FOR THEM AT THE SAME TIME US COMPANIES HOLD A TECHNOLOGICAL EDGE THAT COULD WIN THEM FOUR OR FIVE PROCUREMENTS OUTRIGHT MORE IN A SINGLE YEAR THAN US CONCERNS HAVE WON IN TOTAL FROM THE JAPANESE GOVERNMENT SINCE 1987 US SUPERCOMPUTER MAKERS CERTAINLY HAVEN'T HAD MUCH LUCK CRACKING THE JAPANESE PUBLIC SECTOR FROM 1987 TO 1992 CRAY RESEARCH INC WHICH PIONEERED THE SUPERCOMPUTER MARKET SOLD ONLY FOUR OF ITS EXTREMELY FAST BUT EXPENSIVE MACHINES TO JAPANESE MINISTRIES OVER THE SAME PERIOD JAPANESE FIRMS SUCH AS HITACHI LTD FUJITSU LTD AND NEC CORP SOLD 14 MACHINES TO THE GOVERNMENT CRAY RESEARCH HAS NEVER WON A HEADTOHEAD COMPETITION AGAINST A JAPANESE MAKER IN EACH OF ITS FOUR SALES ITS WAS THE SOLE BID STILL US MAKERS HAVE DOMINATED OTHER GOVERNMENT AND PRIVATESECTOR MARKETS YEARS OF RESULTING USJAPAN TRADE FRICTION PRODUCED TWO SUPERCOMPUTER TRADE AGREEMENTS IN 1987 AND 1990 NEITHER OF WHICH HAS SATISFIED THE US IN APRIL US TRADE REPRESENTATIVE MICKEY KANTOR ANNOUNCED A SPECIAL REVIEW OF JAPAN'S SUPERCOMPUTER BUYING PRACTICES WITH THE SPECIFIC AIM OF ENSURING THAT JAPAN LIVES UP TO THOSE AGREEMENTS SINCE THEN THE US AND JAPAN ALSO HAVE SIGNED A TRADE FRAMEWORK PACT UNDER WHICH THE TWO SIDES WILL AGAIN WRANGLE OVER ISSUES SUCH AS GOVERNMENT PROCUREMENT PARTICULARLY OF SUPERCOMPUTERS AND JAPAN'S COMPLIANCE WITH PAST TRADE AGREEMENTS NOW TWO NEW FORCES ARE CHANGING THE DIMENSIONS OF THE DISPUTE FIRST THERE'S JAPAN'S EXTENDED ECONOMIC SLUMP WHICH EARLIER THIS YEAR LED THE GOVERNMENT TO PASS A 132 TRILLION YEN 1244 BILLION ECONOMIC STIMULUS PACKAGE WITH ONE CHUNK OF THAT MONEY SEVERAL JAPANESE MINISTRIES HAVE ANNOUNCED PLANS TO BUY 11 SUPERCOMPUTERS FOR THEIR RESEARCH INSTITUTES ADD FOUR OTHER MACHINES PURCHASED EARLIER THIS YEAR THROUGH ITS REGULAR BUDGET AND THE JAPANESE GOVERNMENT PLANS TO BUY ALMOST AS MANY SUPERCOMPUTERS THIS YEAR AS IT HAS IN THE SIX YEARS SINCE THE FIRST SUPERCOMPUTER TRADE AGREEMENT THEN FOR THE FIRST TIME FOUR OR FIVE OF THOSE MACHINES ARE LIKELY TO BE NEXTGENERATION MACHINES KNOWN AS MASSIVELY PARALLEL PROCESSING OR MPP SUPERCOMPUTERS A FIELD IN WHICH US COMPANIES ARE DOMINANT UNLIKE TRADITIONAL VECTOR PROCESSING SUPERCOMPUTERS WHICH PERFORM HIGHSPEED CALCULATIONS ON A HANDFUL OF EXTREMELY POWERFUL PROCESSORS MPP SUPERCOMPUTERS DIVIDE UP THEIR CALCULATIONS AMONG HUNDREDS OR THOUSANDS OF SMALLER BUT CHEAPER PROCESSORS WHILE JAPANESE FIRMS ARE WORKING ON MPP MACHINES OF THEIR OWN MANY ANALYSTS SAY THEY ARE YEARS BEHIND US FIRMS SUCH AS INTEL CORP AND THINKING MACHINES CORP US COMPANIES ALREADY REIGN SUPREME IN THE JAPANESE PRIVATESECTOR MARKET WHERE SOME ANALYSTS ESTIMATE THAT 75 TO 85 OF ALL MPP INSTALLATIONS ARE US MACHINES MPP TECHNOLOGY AND INNOVATION IS REALLY COMING OUT OF THE US ACADEMIC COMMUNITY SAYS HOWARD RICHMOND DIRECTOR OF THE HIGHPERFORMANCE COMPUTING GROUP AT THE GARTNER GROUP A STAMFORD CONN CONSULTING GROUP THE TECHNOLOGY IS NEW AND CHANGES VERY RAPIDLY THE JAPANESE PLANNING PROCESS JUST DOESN'T ACCOMMODATE TWOYEAR TECHNOLOGY CYCLES US FIRMS EXPECT TO DO WELL IN THE MPP PROCUREMENTS AND MAY EVEN WALK AWAY WITH ALL OF THEM THE COMPETITION HAS DRAWN THE INTEREST OF US COMPANIES THAT HAVEN'T SOLD SUPERCOMPUTERS TO THE JAPANESE GOVERNMENT INCLUDING INTEL THINKING MACHINES AND INTERNATIONAL BUSINESS MACHINES CORP WHICH INTRODUCED ITS OWN MPP MACHINE IN FEBRUARY SOME JAPANESE MAKERS ARE ALREADY SOUNDING A RETREAT NEC FOR INSTANCE WHICH RECENTLY INTRODUCED ITS OWN MPP MACHINE SAYS IT MAY INSTEAD BUY A USMADE MPP MACHINE AND THEN SELL IT TO THE JAPANESE GOVERNMENT DEPENDING ON WHAT YOU LOOK AT US MACHINES ARE MORE ADVANCED SAYS AN NEC SPOKESMAN SUCH AN ARRANGEMENT MIGHT ALSO BENEFIT SMALLER MPP MAKERS SUCH AS THINKING MACHINES WHICH HASN'T DONE BUSINESS IN JAPAN LONG ENOUGH TO MEET STANDARDS SET FOR COMPANIES THAT BID ON GOVERNMENT CONTRACTS THE US ADVANTAGE IN MPP TECHNOLOGY HOWEVER HASN'T SHAKEN THE US GOVERNMENT'S RESOLVE TO PRESS ITS CASE ON SUPERCOMPUTER PURCHASES IN FACT US OFFICIALS APPEAR TO HAVE ALREADY DISCOUNTED THE MPP PROCUREMENTS AND AS A RESULT ARE FOCUSING EVEN MORE INTENTLY ON THE REMAINING SIX OR SEVEN CASES IN WHICH JAPAN WILL BUY MORE TRADITIONAL VECTORPROCESSING SUPERCOMPUTERS LATE LAST MONTH FOR INSTANCE A SENIOR US OFFICIAL FLEW FROM WASHINGTON TO VISIT JAPANESE MINISTRIES AND REMIND THEM THAT THE US WILL BE WATCHING THEIR SUPERCOMPUTER DECISIONS CLOSELY WE'RE LOOKING FOR TANGIBLE MEASURABLE RESULTS THE OFFICIAL TOLD REPORTERS AT THE TIME OUR SUPERCOMPUTERS ARE THE MOST COMPETITIVE IN THE WORLD YET WE'RE EFFECTIVELY SHUT OUT OF THE MARKET HERE HE SAID THE US WAS PARTICULARLY CONCERNED THAT JAPANESE FIRMS WON FOUR SUPERCOMPUTER PROCUREMENTS ANNOUNCED IN JULY THREE OF WHICH CRAY RESEARCH BID ON FROM THE JAPANESE SIDE US PRESSURE LOOKS A LOT LIKE INTIMIDATION ALTHOUGH JAPANESE OFFICIALS ADMIT IT MIGHT BE WORKING THE US OFFICIAL'S VISIT PUT CONSIDERABLE PRESSURE ON JAPANESE MINISTRIES SAYS ONE OFFICIAL AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY DIRECTORS OF THE MINISTRIES WONDERED WAS THIS A THREAT' THE OFFICIAL SAYS I'M AFRAID THAT SUCH PRESSURE WILL LEAD THE PROCUREMENT PROCESS DOWN A COURSE THAT'S NOT FAIR TO THE US GOVERNMENT THE ISSUE ISN'T JUST ONE OF LOST SALES OFFICIALS CLAIM THAT PAST JAPANESE GOVERNMENT PRACTICES SUCH AS RESTRICTIVE BIDDING LAX ANTITRUST ENFORCEMENT AND ARBITRARY ADMINISTRATIVE DECISIONS ESSENTIALLY BUILT UP A STRONG DOMESTIC SUPERCOMPUTER INDUSTRY AT THE EXPENSE OF FIRMS LIKE CRAY RESEARCH JAPANESE FIRMS NOW OFFER VECTORPROCESSING SUPERCOMPUTERS THAT IN SOME RESPECTS OUTPACE THE FASTEST MODELS FROM CRAY RESEARCH ALTHOUGH THE JAPANESE SPEED ADVANTAGE LIES MOSTLY IN PARTICULAR APPLICATIONS RATHER THAN OVERALL PERFORMANCE SOME CRITICS SAY THOSE ARGUMENTS RING A BIT HOLLOW COMING FROM THE US GOVERNMENT WHICH HAS PLAYED A BIG ROLE IN FUNDING DEVELOPMENT OF BOTH VECTORPROCESSING AND MPP SUPERCOMPUTERS HAS NEVER PURCHASED A JAPANESE SUPERCOMPUTER AND HAS DISCOURAGED PRIVATE INSTITUTIONS FROM INSTALLING JAPANESE MACHINES 9309150117 930915 YOUR MONEY MATTERS THE CLINTON HEALTH PLAN NURSINGHOME PROVISION MAY BE REMEDY FOR FAMILIES FACING ELDERCARE COSTS BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S HEALTH PLAN WOULD PROVIDE SOME RELIEF FOR MANY PEOPLE WORRIED ABOUT PROTECTING THEMSELVES AND THEIR FAMILIES FROM THE BURDENSOME COSTS OF FUTURE NURSINGHOME CARE AS SPELLED OUT IN THE ADMINISTRATION'S WORKING DRAFT THE PLAN WOULD PROVIDE FUNDING FOR NURSINGHOME ALTERNATIVES AND MAKE LONGTERM CARE INSURANCE MORE ATTRACTIVE IT ISN'T A SOLUTION TO THE LONGTERM CARE PROBLEM SAYS ARMOND BUDISH A CLEVELAND LAWYER BUT DESPITE ITS LIMITED SCOPE HE SAYS THE PROPOSAL IS A STEP IN THE RIGHT DIRECTION CURRENTLY MEDICAID THE HEALTHCARE ASSISTANCE PROGRAM FOR THE POOR IS THE ONLY GOVERNMENT PROGRAM THAT PAYS FOR NURSINGHOME CARE WHILE LONGTERM CARE INSURANCE POLICIES DESIGNED TO COVER THE COST OF A NURSING HOME ARE AVAILABLE FROM PRIVATE INSURERS THE POLICIES ARE EXPENSIVE AND OFTEN RIDDLED WITH EXCLUSIONS THAT KEEP PEOPLE FROM COLLECTING AS A RESULT MANY MIDDLEINCOME PEOPLE HAVE RESORTED TO IMPOVERISHING THEMSELVES ON PAPER IN ORDER TO QUALIFY FOR MEDICAID BY DIVERTING INCOME AND SHIFTING ASSETS OFTEN INTO SOCALLED MEDICAID TRUSTS MANY INDIVIDUALS WERE ABLE TO KEEP THEMSELVES AND THEIR SPOUSES FROM BEING BANKRUPTED BY NURSING HOME BILLS BUT THE ETHICS OF THIS STRATEGY HAVE ALWAYS BEEN CONTROVERSIAL AND THE NEW TAX ACT SIGNED INTO LAW LAST MONTH LEAVES INDIVIDUALS MUCH LESS ROOM TO MANEUVER PRESIDENT CLINTON'S LONGTERM HEALTHCARE PROPOSALS WOULD APPROACH THE PROBLEM IN SEVERAL WAYS A CORNERSTONE OF THE PLAN IS REVAMPING LONGTERM CARE INSURANCE WHICH CAN COST 4000 A YEAR FOR SOMEONE IN THEIR 70S UNDER THE CLINTON PLAN THE GOVERNMENT WOULD SET STANDARDS AIMED AT ELIMINATING MANY CURRENT CONSUMER OBJECTIONS THAT WOULD MAKE THESE POLICIES A BETTER BUY SAYS FRANK MCCARDLE A PARTNER WITH HEWITT ASSOCIATES IN WASHINGTON AND THERE WOULD BE A TAX INCENTIVE TO BUY THEM INDEED LONGTERM CARE PREMIUMS WOULD BE DEEMED MEDICAL EXPENSES FOR TAX PURPOSES MAKING THEM DEDUCTIBLE BY INDIVIDUALS IN SOME CIRCUMSTANCES MORE SIGNIFICANTLY HOWEVER EMPLOYERS WOULD GET A TAX BREAK FOR PROVIDING EMPLOYEES WITH THIS COVERAGE AND EMPLOYEES WOULDN'T BE TAXED ON THE BENEFIT THE CLINTON PLAN ALSO WOULD ENCOURAGE ALTERNATIVES TO NURSINGHOME CARE BY CREATING NEW FUNDING FOR HOME CARE AND COMMUNITYBASED CARE IT WOULD KEEP PEOPLE WHO LACK ANOTHER OPTION FROM BEING FORCED INTO NURSING HOMES THE GOVERNMENT WOULD PROVIDE AT LEAST 60 OF THE COST OF THIS CARE NO MATTER HOW MUCH MONEY INDIVIDUALS HAVE THE PLAN WOULD ALSO MAKE IT A BIT EASIER TO QUALIFY FOR MEDICAID TYPICALLY MEDICAID BENEFITS ARE AVAILABLE ONLY TO PEOPLE WITH LESS THAN 2000 IN ASSETS UNDER THE CLINTON HEALTH PACKAGE THAT LIMIT WOULD INCREASE TO 12000 THAT'S STILL TOO LOW TO PROVIDE MUCH RELIEF FOR MANY MIDDLEINCOME INDIVIDUALS ELDERCARE LAWYERS SAY IT WON'T DO AWAY WITH PEOPLE'S NEED TO DO MEDICAID PLANNING SAYS MR BUDISH ON TOP OF THAT PEOPLE NOW MUST DEAL WITH STRICTER RULES IMPOSED BY THE NEW TAX ACT IF PEOPLE ARE NOT AWARE OF THE CHANGES AND GO ABOUT DOING THINGS ON THEIR OWN THEY COULD REALLY FALL INTO AN UNBELIEVABLE TRAP SAYS GIDEON ROTHSCHILD A NEW YORK LAWYER TO APPRECIATE THE COMPLICATIONS OF THE NEW LAW CONSIDER WHAT HAPPENS WHEN SOMEONE APPLIES FOR MEDICAID TODAY AT THE TIME OF APPLICATION A SNAPSHOT IS TAKEN OF THE PERSON'S RESOURCES UNDER THE NEW LAW THAT SNAPSHOT INCLUDES A LOOKBACK PERIOD OF 36 MONTHS THUS SOMEONE WHO GIVES AWAY 300000 ON JAN 1 1994 WOULD QUALIFY FOR MEDICAID IMMEDIATELY IF THEY APPLIED IN JANUARY 1997 BUT IF THAT SAME PERSON APPLIED ON DEC 31 1996 ONE DAY SHORT OF THREE YEARS THE STORY WOULD BE VERY DIFFERENT ANY TRANSFER OF ASSETS WITHIN THE 36 MONTHS AUTOMATICALLY TRIGGERS A PERIOD OF INELIGIBILITY UNDER THE OLD LAW THE MAXIMUM WAIT WAS 30 MONTHS NOW THE INELIGIBILITY PERIOD CAN BE AS LITTLE AS A MONTH OR AS LONG AS YOUR WHOLE LIFETIME DEPENDING ON THE AMOUNT THAT HAS BEEN GIFTED SAYS MR BUDISH THE WAITING PERIOD WOULD VARY FROM STATE TO STATE AND IS CALCULATED BY DIVIDING THE VALUE OF ASSETS TRANSFERRED BY THE STATE'S AVERAGE MONTHLY COST OF NURSINGHOME CARE FOR EXAMPLE IN MASSACHUSETTS WHERE AVERAGE NURSING HOME COSTS ARE 3000 A MONTH THAT PERSON WHO GAVE AWAY 300000 WITHIN THE LOOKBACK PERIOD WOULD HAVE TO WAIT 100 MONTHS OR 83 YEARS FROM THE DATE OF TRANSFER USE OF A TRUST APPARENTLY CAN TRIGGER A LONGER LOOKBACK PERIOD OF 60 MONTHS BUT LANGUAGE IN THE LAW HAS MANY LAWYERS SO CONFUSED THAT EVEN THEY AREN'T SURE EXACTLY WHAT ACTIVATES THIS PENALTY THIS CONFUSION ALONE MAY BE ENOUGH TO DISCOURAGE USE OF SUCH TRUSTS FOR NOW INDEED EVEN BEFORE THE NEW HEALTHCARE PROPOSALS BECAME PUBLIC ELDERCARE LAWYERS WERE SAYING LONGTERM CARE INSURANCE WAS WORTH ANOTHER LOOK JUST AS PEOPLE LOOK TO INSURANCE TO MINIMIZE ESTATE TAXES I FEEL PEOPLE OUGHT TO LOOK TO PROTECT THEIR ESTATES DURING THEIR LIFETIMES SAYS PETER J STRAUSS AN ELDERCARE LAWYER WITH EPSTEIN BECKER & GREEN NEW YORK HE COMPARES LONGTERM CARE COVERAGE TO AUTO HOMEOWNERS OR DISABILITY INSURANCE AS A BASIC PART OF FINANCIAL PLANNING THE CRUX HOWEVER IS NOT WHETHER PEOPLE NEED IT BUT WHETHER THEY CAN AFFORD IT HE SAYS NOTING THAT SUCH COVERAGE IS BEYOND THE REACH OF MANY WHO HAVE TURNED TO MEDICAID PLANNING 9309150116 930915 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 ALLEGHENY GENERATING CO 50 MILLION OF DEBENTURES SOLD VIA COMPETITIVE BIDDING AND WON BY PRUDENTIAL SECURITIES INC THE DEBENTURES DUE SEPT 1 2003 WERE PRICED AS 5625S AT 9891 TO YIELD 577 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS AND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP ALLEGHENY IS A UNIT OF ALLEGHENY POWER SYSTEM INC ALLEGHENY GENERATING CO 100 MILLION OF DEBENTURES SOLD VIA COMPETITIVE BIDDING AND WON BY GOLDMAN SACHS & CO THE DEBENTURES DUE SEPT 1 2023 WERE PRICED AS 6875S AT 99679 TO YIELD 69 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS AND ARE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF MEDIUMTERM NOTES DUE SEPT 28 1998 PRICED AT PAR TO YIELD 492 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 17 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO COCACOLA FEMSA SA 6563620 AMERICAN DEPOSITARY SHARES PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO OF THE TOTAL 4922700 ADSS ARE BEING OFFERED IN THE US AND 1640920 ADSS INTERNATIONALLY EACH OF THE AMERICAN DEPOSITARY SHARES WHICH ARE LISTED ON THE NEW YORK STOCK EXCHANGE REPRESENTS 10 SERIES L SHARES MFS COMMUNICATIONS CO FOUR MILLION COMMON SHARES PRICED AT 50 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AND BEAR STEARNS & CO PAIRGAIN TECHNOLOGIES INC INITIAL OFFERING OF 42 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PENNZOIL CO FIVE MILLION COMMON SHARES PRICED AT 6250 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC KENTUCKY STATE PROPERTY & BUILDING COMMISSION 416 MILLION OF REVENUE AND REVENUEREFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 26 IN 1994 TO 53 IN 2013 THE BONDS HAVE BEEN RATED SINGLEA BY BOTH MOODY'S AND S&P NEBRASKA PUBLIC POWER DISTRICT 379 MILLION 1993 SERIES C POWERSUPPLYSYSTEM REVENUE BONDS PRICED BY A FIRST BOSTON CORP GROUP YIELDS RANGE FROM 27 IN 1994 TO 535 IN 2017 THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S S&P IS EXPECTED TO ASSIGN A SINGLEAPLUS RATING NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 1438 MILLION 1993 SERIES D AND SERIES E MENTALHEALTHSERVICE FACILITIESIMPROVEMENT REVENUE BONDS PRICED BY A CHEMICAL SECURITIES INC GROUP INCLUDED ARE 1229 MILLION SERIES D BONDS PRICED TO YIELD FROM 3 IN 1994 TO 557 IN 2023 THERE ARE ALSO 209 MILLION SERIES E BONDS WHICH HAVE YIELDS THAT RANGE FROM 3 IN 1994 TO 525 IN 2004 MOODY'S RATED THE BONDS BAA1 AND S&P ASSIGNED A TRIPLEBPLUS RATING FEDERAL HOME LOAN MORTGAGE CORP 350 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1607 IS BACKED BY THE AGENCY'S 20YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 237 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993204 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS CREDIT FONCIER DE FRANCE FRENCH AGENCY THREE BILLION FRENCH FRANCS OF 65 EUROBONDS DUE OCT 13 2008 AT ISSUE AND REOFFER PRICE 986 VIA BANQUE PARIBAS BONDS YIELD 665 A MARGIN OF 20 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 04 DENMARK SOVEREIGN 102 MILLION MARKS OF 575 EUROBONDS DUE NOV 15 1995 AT ISSUE AND REOFFER PRICE 10025 VIA DAIWA EUROPE DEUTSCHLAND GMBH BONDS YIELD 5614 FEES UNDISCLOSED NISSAN MOTOR CO JAPAN 10 BILLION YEN OF REVERSECOUPON FLOATINGRATE EURONOTES DUE JAN 28 1998 AT ISSUE PRICE 101475 VIA FUJI INTERNATIONAL FINANCE PLC REOFFERED AT PAR ANNUAL COUPON 385 UNTIL JANUARY 1997 THEREAFTER INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH YEN LONDON INTERBANK OFFERED RATE LESS 0125 PUT OPTION EXERCISABLE ON JAN 28 1997 AT PAR FEES 1625 SAFRA REPUBLIC HOLDINGS SA LUXEMBOURG 100 MILLION OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1998 AT ISSUE AND REOFFER PRICE 9875 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS FLAT ISSUED ON FIDUCIARY BASIS THROUGH CHASE MANHATTAN BANK BONDS CALLABLE AFTER THREE YEARS AT PAR FEES 025 SHINAGAWA FUEL CO JAPAN 150 MILLION OF 0625 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE SEPT 30 1997 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD GUARANTOR FUJI BANK WARRANTS EXERCISABLE FROM OCT 14 1993 TO SEPT 22 1997 TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED SEPT 21 AT INDICATED PREMIUM 25 YESTERDAY'S CLOSING SHARE PRICE 1170 YEN FEES 225 LESS 02 POINT FOR LEAD MANAGER UNY CO JAPAN 10 BILLION YEN OF 38 EUROBONDS DUE JAN 6 1998 AT ISSUE AND REOFFER PRICE PAR VIA TOKAI BANK EUROPE LTD BONDS YIELD 38 FEES 025 YUKONG LTD KOREA 70 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 1 NOTES DUE OCT 6 1998 AT PAR VIA SWISS BANK CORP BONDS CONVERTIBLE FROM OCT 20 1993 TO DEC 15 1998 TERMS SET SEPT 16 FEES 175 9309150114 930915 USAIR REDUCES FARES TO EUROPE BY UP TO 40 UNITED AMERICAN ADOPT SIMILAR MOVES OTHERS PLAN TO STUDY INITIATIVE BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL OFFSEASON TRAVEL TO EUROPE JUST BECAME A GOOD DEAL CHEAPER USAIR GROUP'S USAIR UNIT ANNOUNCED PRICE REDUCTIONS OF 27 TO 40 ON FOUR NORTH ATLANTIC ROUTES PHILADELPHIAPARIS PITTSBURGHFRANKFURT CHARLOTTE NCFRANKFURT AND CHARLOTTELONDON THE NONREFUNDABLE FARES WHICH REQUIRE A 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY WENT ON SALE YESTERDAY FOR TRAVEL STARTING NOV 1 THE NEW ROUNDTRIP FARES WHICH CAME ON TOP OF ALREADY REDUCED TARIFFS RANGE FROM 358 TO 448 AMR CORP'S AMERICAN AIRLINES PROMPTLY MATCHED THE DISCOUNTS ON ALL THE ROUTES VIA OTHER HUBS EXCEPT THE CHARLOTTELONDON ROUTE UNITED AIRLINES A UNIT OF UAL CORP SAID IT WILL MATCH USAIR'S TARIFFS ON THE FOUR CITYPAIRS VIA ITS HUB AT WASHINGTON'S DULLES AIRPORT OTHER MAJOR TRANSATLANTIC AIRLINES YESTERDAY SAID THEY WERE STUDYING USAIR'S INITIATIVE DELTA AIR LINES WHICH HAD INTRODUCED EARLIER AUTUMN FARE CUTS TO EUROPE SAID IT IS CERTAINLY GOING TO BE COMPETITIVE WHILE DELTA DOESN'T COMPETE DIRECTLY ON THE USAIR ROUTES A SPOKESMAN SAID THE CARRIER WILL HAVE TO CONSIDER CUTTING PRICES ON ITS ROUTES TO EUROPE FROM ATLANTA CINCINNATI NEW YORK AND WASHINGTON TRANS WORLD AIRLINES WHICH MATCHED AN EARLIER DELTA AND USAIR FARE CUT ON ITS OWN PITTSBURGHFRANKFURT SERVICE SAID IT IS STUDYING WHICH OF ITS OTHER US GATEWAYS MIGHT BE AFFECTED WE'RE NOT MATCHING AT THIS TIME BUT WE'RE STUDYING SAID A SPOKESMAN EUROPEAN CARRIERS SUCH AS AIR FRANCE AND LUFTHANSA SAID THEY WERE WAITING FOR REACTIONS FROM THE US AIRLINES TO USAIR'S INITIATIVE WE ARE MONITORING THE SITUATION TO SEE WHAT OTHER AIRLINES WILL MATCH AND FROM WHICH CITIES SAID A LUFTHANSA SPOKESMAN LUFTHANSA SERVES 12 US CITIES NONE INCLUDED IN THE USAIR PROMOTION THE USAIR PRICE CUT COULD BE A BIT AWKWARD FOR BRITISH AIRWAYS WHICH EARLIER THIS YEAR BOUGHT 246 OF USAIR BRITISH AIRWAYS PLANS TO TAKE OVER USAIR'S BALTIMORELONDON ROUTE OCT 1 AND INTENDS TO START A CHARLOTTELONDON SERVICE OF ITS OWN JAN 5 AMONG ITS EXISTING 16 US DESTINATIONS BRITISH AIRWAYS ALSO SERVES PHILADELPHIA AND PITTSBURGH FROM LONDON WE ARE LOOKING AT THE SITUATION A BRITISH AIR SPOKESMAN SAID OF USAIR'S TICKET SALE THE NORTH ATLANTIC LONG HAS BEEN A HIGHLY COMPETITIVE MARKET BECAUSE OF THE NUMBER OF CARRIERS AND FREEDOM OF PRICING RECENTLY SOME US CARRIERS HAVE CUT BACK THEIR CAPACITY IN THE FACE OF BIG OPERATING LOSSES IN THE MARKET AMERICAN AIR HAS SAID IT WILL SUSPEND THREE NORTH ATLANTIC ROUTES THIS FALL DELTA RECENTLY DROPPED A MIAMIFRANKFURT SERVICE AND TWA PULLED OUT OF FOUR EUROPEAN DESTINATIONS LAST YEAR UNDER THE USAIR FARE OFFER A FIRST ROUND OF DISCOUNTED TICKETS IS FOR SALE THROUGH THE END OF SEPTEMBER FOR TRAVEL NOV 1 TO MARCH 15 A SECOND ROUND OF DISCOUNTS WITH SLIGHTLY HIGHER PRICES WILL BE OFFERED DURING OCTOBER FOR TRAVEL DEC 1 TO MARCH 15 ALL THE ROUTES BUT PHILADELPHIAPARIS HAVE BLACKOUT PERIODS DURING THE CHRISTMAS HOLIDAYS 9309150113 930915 FLORIDA'S GOVERNOR SEEKS FEDERAL HELP AFTER ANOTHER FOREIGN TOURIST IS SLAIN BY MICHAEL J MCCARTHY AND EMORY THOMAS JR STAFF REPORTERS OF THE WALL STREET JOURNAL THE SLAYING OF ANOTHER FOREIGN TOURIST IN FLORIDA PROMPTED GOV LAWTON CHILES TO REQUEST ASSISTANCE FROM PRESIDENT CLINTON TO HELP BLUNT A YEARLONG SERIES OF ATTACKS ON VACATIONERS FROM OVERSEAS THE BLOODSHED HAS CONFOUNDED STATE OFFICIALS AND REKINDLED WORLDWIDE JITTERS ABOUT TRAVELING TO FLORIDA WHOSE 30 BILLION TOURISM INDUSTRY IS ESSENTIAL TO THE STATE'S ECONOMY THE SHOOTING EARLY YESTERDAY OF A 34YEAROLD BRITISH TOURIST NEAR TALLAHASSEE MARKED THE SECOND KILLING OF A FOREIGN VISITOR IN A WEEK AND THE NINTH SINCE LAST FALL POLICE SAID GARY COLLEY OF ENGLAND WAS KILLED DURING AN APPARENT ROBBERY ATTEMPT AT A REST STOP NEAR INTERSTATE 10 EAST OF TALLAHASSEE AS HE NAPPED IN HIS CAR WITH HIS GIRLFRIEND TWO ARMED YOUTHS APPROACHED AND DEMANDED MONEY POLICE SAID WHEN MR COLLEY TRIED TO DRIVE AWAY HE WAS SHOT HIS GIRLFRIEND WAS WOUNDED BY GUNFIRE IN ADDITION TO ASKING MR CLINTON FOR A 4 MILLION FEDERAL GRANT TO EXPAND THE STATE'S TASK FORCE ON VIOLENT STREET CRIME GOV CHILES YESTERDAY SAID HE WAS REASSIGNING HUNDREDS OF STATE EMPLOYEES LICENSED TO CARRY ARMS TO AUGMENT THE STATE HIGHWAY PATROL FORCE HE PLANS TO DRAW ON AMONG OTHERS AUXILARY HIGHWAY PATROL OFFICERS AND OFFICIALS FROM THE DEPARTMENT OF TRANSPORTATION AND THE GAME AND FRESH WATER FISH COMMISSION HE ORDERED 24HOUR SECURITY AT ALL STATE REST STOPS AND SAID HE WOULD SEEK 3 MILLION IN EMERGENCY STATE FUNDS TO PAY FOR THE BEEFEDUP SECURITY FLORIDA'S DIVISION OF TOURISM DECIDED TO PULL FOR 30 DAYS ALL ITS OVERSEAS AND DOMESTIC ADVERTISING UNVEILED IN JULY AND TITLED ONE FLORIDA MANY FACES THE SERIES OF PRINT ADS HAS A BUDGET OF 67 MILLION FLORIDA'S SECRETARY OF COMMERCE GREG FARMER SAID HE EXPECTS DOUBLEDIGIT DROPS IN FOREIGN TOURISM TO THE STATE AS A RESULT OF THE RECENT ATTACKS EUROPEAN TOURISM COULD FALL AS MUCH AS 25 HE ESTIMATED THE ANTICIPATED DROP IN FOREIGN TOURISM IS PARTICULARLY TOUGH TO SWALLOW IN LIGHT OF RECENT TRAVEL TRENDS INTERNATIONAL TOURISM WHICH NOW ACCOUNTS FOR 20 OF FLORIDA'S VISITORS EACH YEAR HAS BEEN A FASTGROWING SEGMENT FOR THE STATE SO FAR THIS YEAR GERMAN TOURISM TO FLORIDA WAS UP 32 MR FARMER SAID AND BRITISH TOURISM WAS UP 13 IT'S A CRISIS SITUATION FOR US MUCH LIKE HURRICANE ANDREW SAID A SPOKESWOMAN FOR FLORIDA'S COMMERCE DEPARTMENT WHICH IS CLOSELY MONITORING THE STATE'S IMAGE AND BOOKINGS ABROAD ON THE HEELS OF LAST WEEK'S GLOBAL HEADLINES ABOUT THE KILLING OF A GERMAN TOURIST IN MIAMI THE LATEST SHOOTING AGAIN MADE FRONTPAGE NEWS IN EUROPE YESTERDAY AFTERNOON'S EDITIONS OF THE EVENING STANDARD IN ENGLAND FOR ONE CARRIED THE HEADLINE FLORIDA GANG SHOOT BRITONS AT FLORIDA NETWORK TOURS A NORTH MIAMI BEACH TOUR OPERATOR CATERING TO FOREIGN TRAVELERS BUSINESS FROM GERMANSPEAKING COUNTRIES HAS VIRTUALLY HALTED THE COMPANY WHICH TYPICALLY BOOKS 60 TO 80 TOURS A DAY IN THE FALL IS SEEING FEWER THAN 10 I THINK IT'LL TAKE ABOUT A YEAR BEFORE PEOPLE FORGET SAID SUELY AUERBACH FLORIDA NETWORK'S PRESIDENT SHE SAID SHE EXPECTS TO LAY OFF THREE OF HER SEVEN MIAMI STAFFERS AND WILL ADJUST TO THE DOWNTURN BY PUSHING OTHER AMERICAN DESTINATIONS SUCH AS CALIFORNIA AND HAWAII STILL OTHER TRAVEL INDUSTRY OFFICIALS AND AIRLINES MONITORING THE SITUATION FROM BOTH SIDES OF THE ATLANTIC SAY THEY HAVE YET TO SEE ANY IMPACT IN BERLIN FLORIDA DREAM TRAVEL A SPECIALIST IN VACATIONS TO THE SUNSHINE STATE HAS SEEN NO DECLINE IN BOOKINGS LIKEWISE FOR THE BRITISH FOREIGN OFFICE WHICH ESTIMATES THAT 800000 BRITONS VISIT FLORIDA ANNUALLY IN NEW YORK LUFTHANSA SAID A FEW CUSTOMERS HAVE ASKED TO BE ROUTED AWAY FROM MIAMI BUT IT HAS SEEN NO PATTERN DEVELOP A SPOKESMAN FOR THE GERMAN AIRLINE SAID TRAVEL BUSINESSES GENERALLY HOWEVER ARE BRACING FOR A DOWNTURN SAID A SPOKESMAN FOR DELTA AIR LINES IN ATLANTA IT'S OBVIOUS THAT THIS KIND OF PUBLICITY WILL NEGATIVELY IMPACT TRAVEL FOLLOWING THE APRIL SHOOTING OF A GERMAN TOURIST FLORIDA'S GOVERNMENT AND BUSINESSES LAUNCHED A CAMPAIGN TO PREVENT FURTHER ATTACKS POLICE OFFICERS WEARING BERMUDA SHORTS AND TOTING CAMERAS AND MAPS POSED AS TOURISTS TO MAKE ARRESTS RENTAL CAR COMPANIES BEGAN REMOVING ALL MARKINGS AND LOGOS FROM THEIR VEHICLES TO MAKE OCCUPANTS LESS CONSPICOUS AND THE STATE TOURISM DIVISION ISSUED SAFETY PAMPHLETS WRITTEN IN SEVERAL LANGUAGES TRAVEL INDUSTRY OFFICIALS GENERALLY APPLAUDED FLORIDA'S HANDLING OF THE CRIMES STATE OFFICIALS HAVE DONE JUST ABOUT EVERYTHING THEY CAN TO MAKE IT AS SAFE AS THEY CAN SAID EDWARD R BOOK PRESIDENT OF THE TRAVEL INDUSTRY ASSOCIATION OF AMERICA BUT WITH ALL THEY'VE DONE THE CRIMINAL ELEMENT SEEMS TO HAVE THE UPPER HAND AT THE MOMENT 9309150112 930915 ECONOMY VEHICLE SALES ARE STILL SLOW EDGING UP 21 IN EARLY SEPTEMBER PERIOD GM CONTINUED TO LOSE GROUND TO US RIVALS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT VEHICLE SALES IN EARLY SEPTEMBER ROSE SLIGHTLY FROM A YEAR EARLIER MAINTAINING THE RECENT LACKLUSTER PACE AS GENERAL MOTORS CORP CONTINUED TO LOSE SUBSTANTIAL GROUND TO ITS DOMESTIC RIVALS SALES OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS IN THE FIRST 10 DAYS OF SEPTEMBER ROSE JUST 21 TO 236469 UNITS FROM A YEAR EARLIER THAT WAS EQUIVALENT TO A SEASONALLY ADJUSTED RATE OF 114 MILLION VEHICLES A YEAR UP FROM THE YEAREARLIER'S ANEMIC 104 MILLION BUT ABOUT FLAT WITH THE UNIMPRESSIVE AUGUST RATE IMPORT SALES AREN'T AVAILABLE ON A 10DAY BASIS GM WHICH LOST MARKET SHARE IN AUGUST WAS THE BIG LOSER AGAIN IN EARLY SEPTEMBER WHILE FORD MOTOR CO POSTED A 78 GAIN IN VEHICLE SALES AND CHRYSLER CORP SALES ROSE AN ESTIMATED 197 GM'S VEHICLE SALES PLUMMETED 165 CHRYSLER DOESN'T REPORT 10DAY SALES THE ESTIMATE IS FROM WARD'S AUTOMOTIVE REPORTS THE NO 1 AUTO MAKER SOLD 84903 CARS AND LIGHT TRUCKS DURING THE 10 DAYS JUST 7712 MORE THAN FORD THE SHRINKAGE IS PARTLY BY DESIGN AS GM HAS DELIBERATELY SCALED BACK ITS LESSPROFITABLE BULK SALES TO DAILY RENTAL FLEETS THIS YEAR BUT IN THE HIGHLY PROFITABLE LIGHTTRUCK SEGMENT FORD OUTSOLD GM FOR THE THIRD CONSECUTIVE 10DAY PERIOD THE LATEST SCORE WAS 36521 FOR FORD COMPARED WITH 33884 FOR GM IN A CATEGORY THAT INCLUDES MINIVANS PICKUPS AND SPORTUTILITY VEHICLES IN SPORTUTILITY VEHICLES ALONE FORD SOLD 6516 EXPLORERS MORE THAN THE 6481 THAT GM COULD MUSTER WITH SPORTUTILITY VEHICLES AND MINIVANS COMBINED GM'S EXPLANATION THEY HAVE TRUCKS TO SELL AND WE DON'T A GM SPOKESMAN SAID IT'S A MATTER OF KEEPING UP SUPPLY WITH DEMAND HE ADDED WE'RE HOPEFUL THAT WHAT WE'RE SEEING IS A SHORTTERM SUPPLY PROBLEM IN THE INTENSELY COMPETITIVE PICKUPTRUCK SEGMENT GM DID BEST FORD IN THE LATEST 10DAY PERIOD SELLING 11192 CHEVROLET C/K PICKUP TRUCKS COMPARED WITH 9889 FSERIES PICKUPS SOLD BY FORD BUT IN A FRESH SIGN OF CONTINUING RETRENCHMENT GM YESTERDAY ANNOUNCED THAT ITS CHEVROLET DIVISION WILL END THIS YEAR ITS SUBSIDIES FOR PRODUCTION OF ENGINES FOR INDY CAR RACING TEAMS THE DIVISION CITED ESCALATING COSTS AND THE NEED TO DEVOTE ALL AVAILABLE RESOURCES TO CHEVY'S MAINSTREAM PRODUCT AND MARKETING INITIATIVES AS THE REASONS FOR ENDING A SEVENYEAR INVOLVEMENT IN INDY CAR RACING GM WILL KEEP A 25 STAKE IN ILMOR ENGINEERING LTD THE BRITISH PRODUCER OF THE CHEVY INDY V8 ENGINES AT THE END OF AUGUST GM'S INVENTORY OF UNSOLD VEHICLES STOOD AT AN AVERAGE 56DAY SUPPLY COMPARED WITH A 65DAY SUPPLY AT FORD AND A 64DAY SUPPLY AT CHRYSLER A 60TO65DAY SUPPLY IS CONSIDERED IDEAL SPOT INVENTORY SHORTAGES IN EARLY SEPTEMBER DEPRESSED SALES SAID TOM WEBB CHIEF ECONOMIST OF THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION BUT HE ADDED NEW MODELS DISCOUNTED LEASES AND LOW INTEREST RATES WILL KEEP THE MARKET RELATIVELY STRONG IN THE FOURTH QUARTER MEANWHILE FORD YESTERDAY SLASHED CASH INCENTIVES TO THE CUSTOMER BY AS MUCH AS 500 ON CERTAIN MODELS FOR EXAMPLE FORD CUT THE REBATE ON ITS FORD TAURUS IN HALF TO 500 FROM 1000 THE COMPANY HAS BEEN MOVING AWAY FROM CASH INCENTIVES AND TOWARD DISCOUNTING LEASE PROGRAMS THE JAPANESE AUTO MAKERS ALSO SAW BIG GAINS IN THE LATEST PERIOD HONDA MOTOR CO WHICH WILL SOON INTRODUCE ITS RESTYLED ACCORD POSTED A 102 JUMP IN TOTAL VEHICLE SALES NISSAN MOTOR CO RIDING ON STRONG SALES OF ITS ALTIMA SEDAN POSTED A 619 SURGE IN ITS TOTAL VEHICLE SALES TOYOTA MOTOR CORP'S SALES CLIMBED 36 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING GM FORD AND CHRYSLER ALL MOVED LOWER GM FELL 175 TO 4775 FORD 125 TO 5375 AND CHRYSLER 875 CENTS TO 44625 9309150111 930915 ALLSTAR ANALYSTS 1993 SURVEY MACHINERY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL EITHER YOU'VE GOT IT OR YOU'D BETTER GET IT HIGH PRODUCTIVITY THAT IS US MANUFACTURING IS UNDERGOING A SHIFT TOWARD EFFICIENCY AND PRODUCTIVITY NOT TOWARD ADDING CAPACITY HIGH PRODUCTIVITY IS CRUCIAL IN A WORLD IN WHICH PRICE INCREASES ARE RARE AND INTERNATIONAL COMPETITION IS FIERCE THAT BODES WELL FOR SEVERAL MACHINERY COMPANIES TOP STOCK PICKERS IN THIS GROUP SAY SPECIFICALLY THE ALLSTAR ANALYSTS LIKE SUCH COMPANIES AS GIDDINGS & LEWIS CINCINNATI MILACRON NEWCOR CATERPILLAR INGERSOLLRAND APPLIED POWER AND SHILOH INDUSTRIES ALEXANDER P PARIS OF BARRINGTON RESEARCH IN BARRINGTON ILL TOPPED THE STOCK PICKING RANKS FOR 1992 WITH BIG GAINS IN NEWCOR REGAL BELOIT AND GIDDINGS & LEWIS HE IS A DOUBLE ALLSTAR HONORED ALSO FOR HIS WORK IN THE AUTOPARTS AREA MR PARIS IS STILL A GIDDINGS & LEWIS FAN HE CALLS THE FOND DU LAC WIS COMPANY A ONESTOP AUTOMATION PLAY KNOWN FOR PROVIDING HIGHLY COMPUTERIZED GROUPS OF MACHINE TOOLS THAT PIECE TOGETHER PRODUCTS MR PARIS ALSO LIKES TWO OTHER MACHINE TOOL MAKERS CINCINNATI MILACRON AND NEWCOR AFTER THE JAPANESE SNATCHED AWAY MUCH OF THE US MARKET FOR STANDARD MACHINE TOOLS CINCINNATI MILACRON LAUNCHED ITS WOLFPACK PROJECT AIMED AT REDESIGNING HOW THE COMPANY MAKES ITS PRODUCTS ONE RESULT IT SLASHED THE NUMBER OF PARTS IT TAKES TO MAKE A STANDARD MACHINE TOOL BY 50 NOW THEY CAN COMPETE VERY EFFECTIVELY AGAINST THE JAPANESE WHERE THE JAPANESE ARE THE STRONGEST HE SAYS AS FOR NEWCOR MR PARIS LIKES ITS FOCUS ON SERVING THE AUTO INDUSTRY WHICH IS TRYING HARD TO BRING OUT NEW MODELS QUICKER AND TO BOOST PRODUCTIVITY AND HE NOTES THAT NEWCOR HAS SEVERAL LONGTERM CONTRACTS TO MAKE PRECISION PARTS SECONDRANKED THOMAS G BURNS JR OF NATWEST SECURITIES IN NEW YORK LIKES THE SAME THREE STOCKS THAT PROPELLED HIM INTO THE ALLSTAR RANKS GIDDINGS & LEWIS CATERPILLAR AND INGERSOLLRAND HE SAYS INVESTORS NEED ONLY LOOK AT THE FLOORS OF THE MOST EFFICIENT MANUFACTURERS TO SEE WHY GIDDINGS'S STOCK IS A GOOD BUY ITS PRODUCTS ARE MOST LIKELY THERE MR BURNS LIKES THE EUROPEAN FLAVOR OF CATERPILLAR AND INGERSOLLRAND BOTH GET 20 TO 25 OF THEIR SALES IN EUROPE THAT SHOULD BOOST EARNINGS WHEN THE ECONOMY BEGINS TO RECOVER THERE NEXT YEAR HE SAYS BOTH COMPANIES HAVE ALSO DONE EXTENSIVE AND RIGOROUS COSTCUTTING HE SAYS MICHAEL BRAIG OF STIFEL NICOLAUS SNAGGED THIRD PLACE WITH GAINS IN GIDDINGS TRINOVA AND NACCO HIS FAVORITES TODAY HOWEVER ARE SHILOH INDUSTRIES AND APPLIED POWER SHILOH BASED IN MANSFIELD OHIO IS IN TWO LINES OF BUSINESS STEELCOIL PROCESSING AND STEEL STAMPING IT SUCCEEDS BY PROMISING TO DELIVER PARTS ANY WAY CUSTOMERS WANT MR BRAIG SAYS APPLIED POWER BASED IN BUTLER WIS IS A POWERHOUSE IN HYDRAULIC TOOLING COMPANIES ORDER HYDRAULIC TOOLING TO CLAMP SHIFT MOVE AND PRESS PARTS INTO OTHER PARTS THE TOOLING ALLOWS COMPANIES TO ESSENTIALLY BUILD ROBOTS FOR THESE TASKS BUT MR BRAIG WOULD STAY AWAY FROM CATERPILLAR WHICH HE THINKS CAN THRIVE ONLY IN A BOOMING ECONOMY AND WHICH HE SEES AS LOCKED IN A LINGERING BATTLE WITH THE UNITED AUTO WORKERS 9309150110 930915 ALLSTAR ANALYSTS 1993 SURVEY POLLUTION CONTROL BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL THE POLLUTIONCONTROL INDUSTRY CONTINUES TO BEFUDDLE WOULDBE STOCK PICKERS TECHNOLOGIES ARE STILL IN FLUX REGULATORY ENFORCEMENT OF ANTIPOLLUTION LAWS IS UNEVEN WITH THE ECONOMY LACKLUSTER THE AMOUNT OF WASTES OOZING FROM THE NATION'S SMOKESTACKS AND DRAINPIPES ISN'T GROWING VERY FAST AND COMPANIES ARE TIGHTFISTED ABOUT SPENDING FOR CLEANUPS NO WONDER THE AVERAGE POLLUTIONCONTROL ANALYST'S PICKS LOST ABOUT 4 DURING 1992 BUT SOME ANALYSTS BUCKED THE TREND MICHAEL CARSTENS RANKED AT THE TOP OF THE STOCKPICKING BRIGADE AS AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES HE SCORED BIG GAINS IN TRC AND US FILTER AFTER THAT HE SWITCHED FROM HANCOCK TO BARCLAY INVESTMENTS ONE AREA TO WHICH MR CARSTENS AND OTHER ANALYSTS ARE GRAVITATING IS POLLUTION DETECTION AND MEASURING INSTRUMENTS MR CARSTENS' FAVORITE COMPANY IN THAT SEGMENT IS THERMO ELECTRON WHOSE INCREASINGLY SOPHISTICATED PRODUCTS ARE REDEFINING WHAT POLLUTION IS HE SAYS HE CONTINUES TO LIKE US FILTER WHICH HAS LONG MADE FILTERS FOR BREWERIES AND NOW ALSO MAKES THEM FOR TREATING INDUSTRIAL AND MUNICIPAL WASTE WATERS IT HAS POTENTIAL FOR GENERATING EARNINGS GROWTH OF 15 TO 30 ANNUALLY HE SAYS RANKED SECOND IN STOCK PICKING LAST YEAR THANKS MAINLY TO A GAIN IN ROLLINS ENVIRONMENTAL WAS DEBORAH L THIELSCH OF FIRST BOSTON SHE HAS LEFT THE FIRM AND COULDN'T BE REACHED FOR COMMENT COLLEAGUES SAY SHE IS STARTING A FAMILY COMPANY OFFICIALS AND SOME COMPETITORS SAY THEY DON'T KNOW HOW TO REACH HER HIS FAVORITE PICK AT THE MOMENT IS BROWNINGFERRIS FOR ITS TURNAROUND POTENTIAL HE SAYS BROWNING'S OPERATING PROFIT MARGIN IS CONSIDERABLY BELOW THAT OF ITS MAJOR COMPETITOR WMX AND BROWNING HAS PROGRAMS IN PLACE TO CLOSE THE GAP ANOTHER COMPANY MR CALLAGHAN IS RECOMMENDING IS ZURN INDUSTRIES WHICH BUILDS PLANTS THAT BURN WOOD WASTE AND GARBAGE AND OTHER BIOMASS TO GENERATE ENERGY MR CALLAGHAN HAS DROPPED A NUMBER OF COMPANIES FROM HIS COVERAGE LIST ONE WAS CHAMBERS DEVELOPMENT A SOLIDWASTE COMPANY THAT WAS A HIGHFLIER UNTIL LAST YEAR WHEN IT RESTATED ITS FINANCIAL RESULTS TO REPORT LOSSES FOR THE PREVIOUS COUPLE OF YEARS AND MR CARSTENS HAS DROPPED HANDEX FROM HIS LIST BECAUSE OF SHARP CUTBACKS BY THE OIL INDUSTRY AND CALGON CARBON BECAUSE MUNICIPALITIES ARE STRETCHING OUT SPENDING ON WATER PURIFICATION 9309150109 930915 ABREAST OF THE MARKET STOCKS FALL AFTER BOND SELLOFF BASED ON CONSUMER PRICES DATA BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SLID AFTER INTEREST RATES JUMPED IN REACTION TO AN UNEXPECTEDLY SHARP RISE IN CONSUMER PRICES EVEN SPECIALIZED STOCKMARKET INDEXES LOST GROUND THE DOW JONES TRANSPORTATION AVERAGE DIVED 2223 POINTS TO 161253 AS INVESTORS DUMPED AIRLINE STOCKS ON NEWS OF AGGRESSIVE FARECUTTING AND THE DOW JONES UTILITY AVERAGE PLUNGED 132 TO 25514 AMID A SELLOFF IN BONDS DECLINING ISSUES TOPPED ADVANCERS 1329 TO 679 VOLUME ON THE BIG BOARD CLIMBED TO 2586 MILLION SHARES FROM 2434 MILLION SHARES MONDAY STOCKS TUMBLED AT THE OPENING BELL FOLLOWING BOND PRICES LOWER ON NEWS THAT CONSUMER PRICES ROSE A SEASONALLY ADJUSTED 03 IN AUGUST MANY ECONOMISTS WERE ANTICIPATING INFLATION ON THE CONSUMER LEVEL TO SHOW 02 GROWTH BUT THE BRISK PICKUP IN PRICES UPSET BOND INVESTORS WHO PUSHED THE YIELD ON THE BENCHMARK 30YEAR BOND TO 597 FROM 588 MONDAY THE SELLING IN STOCKS CONTINUED IN SPITE OF A REPORT THAT SHOWED RETAIL SALES ROSE 02 LAST MONTH BETTER THAN MOST ANALYSTS EXPECTED AND MARKING THE FIFTH STRAIGHT MONTHLY INCREASE IN SALES WAYNE NORDBERG A PARTNER AT LORD ABBETT SAID INVESTORS DESPERATELY ARE TRYING TO GET A SENSE ABOUT THE STATE OF THE ECONOMY THERE IS A MAJOR BATTLE GOING ON BETWEEN THE ACCELERATIONISTS WHO THINK THE ECONOMY IS POISED TO ACCELERATE AND INTEREST RATES ARE GOING TO BE A PROBLEM AND THE DEFLATIONISTS WHO THINK THAT THE INFLATION NUMBERS THE SLUGGISH CREDIT DEMAND ARE SIGNS THAT THE ECONOMY IS ROLLING OVER SAID MR NORDBERG SO FAR MR NORDBERG SAYS NEITHER SIDE CAN CLAIM VICTORY BECAUSE THE RECENT ECONOMIC DATA HAVE BEEN INCONCLUSIVE THE RETAIL SALES REPORT IS JUST ANOTHER ONE OF THOSE REPORTS THAT LEAVES US IN NO MAN'S LAND SAID MR NORDBERG IT'S NOT TERRIBLY BULLISH AND IT'S NOT TERRIBLY BEARISH MR NORDBERG SAID HE EXPECT STOCKS TO SEESAW UNTIL THE END OF OCTOBER WHEN INVESTORS WILL HAVE A CLEARER IDEA OF HOW ORDERS FOR GOODS ARE SHAPING UP AND WHAT NEXT YEAR'S CORPORATE PROFITS WILL LOOK LIKE EVEN IF THE ECONOMY APPEARS TO BE GROWING FASTER THAN ANALYSTS BELIEVE MICHAEL METZ CHIEF STOCK STRATEGIST AT OPPENHEIMER SAYS IT'S UNLIKELY STOCKS WILL RALLY MUCH MORE THE PROBLEM WITH THE STOCK MARKET IS THAT ALL THESE HIGH EXPECTATIONS ARE ALREADY BAKED IN THE CAKE SAID MR METZ TECHNOLOGY STOCKS TUMBLED THE SELLING CAME AFTER COMPAQ SAID LATE MONDAY THAT PERSONALCOMPUTER SHIPMENTS IN NORTH AMERICA WILL BE RELATIVELY FLAT IN THE SECOND HALF FOLLOWING A 40 INCREASE IN THE FIRST PART OF THE YEAR THOUGH COMPAQ JUMPED 3 TO 56 1/4 AFTER FALLING MORE THAN 4 POINTS MONDAY OTHER TECHNOLOGY STOCKS SANK ON NASDAQ INTEL LOST 1 1/2 TO 63 1/4 MICROSOFT FELL 1 1/8 TO 75 1/4 APPLE DROPPED 1 TO 24 1/4 AND ORACLE WAS DOWN 5/8 TO 48 3/4 AIRLINE STOCKS TUMBLED AFTER THE INDUSTRY SCUTTLED A 20 FARE INCREASE AND SLASHED FALL FARES FOR LEISURE TRIPS BY AS MUCH AS 45 UAL THE PARENT OF UNITED AIRLINES SKIDDED 4 1/4 TO 142 1/4 DELTA AIR LINESFELL 1 5/8 TO 52 5/8 USAIR WAS DOWN 1/4 TO 13 7/8 AND AMR PARENT OF AMERICAN AIRLINES FELL 3/8 TO 64 3/8 AMR'S CHAIRMAN SAID THE CARRIER PLANS TO CUT 5000 JOBS BY THE END OF 1994 GROUND 11 ADDITIONAL PLANES AND TERMINATE SOME ROUTES TO EUROPE THIS WINTER STOCKS OF THE BIG THREE AUTO MAKERS EASED AFTER THEY RELEASED DATA ON EARLY SEPTEMBER CAR SALES GENERAL MOTORS FELL 1 3/4 TO 45 3/4 FORD DROPPED 1 1/4 TO 53 3/4 AND CHRYSLER FELL 7/8 TO 44 5/8 PARAMOUNT COMMUNICATIONS SLIPPED 1 1/8 TO 63 1/8 VIACOM CLASS A SHARES DROPPED 2 5/8 TO 61 1/2 ON THE AMERICAN STOCK EXCHANGE THIS NEWSPAPER REPORTED YESTERDAY THAT HEAVY BUYING OF THINLY TRADED VIACOM STOCK BY THE COMPANY'S CHAIRMAN HELPED BOOST PRICES OF THE CABLE COMPANY'S SHARES IN THE WEEKS BEFORE IT STRUCK A DEAL TO ACQUIRE PARAMOUNT HOME DEPOT PLUMMETED 4 TO 36 1/4 GOLDMAN SACHS REMOVED THE ATLANTA HOMEIMPROVEMENT RETAILER FROM THE FIRM'S RECOMMENDED LIST DSC COMMUNICATIONS SKIDDED 2 1/4 TO 56 1/8 ON NASDAQ THE COMPANY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 25 MILLION COMMON SHARES SOLECTRON SOARED 5 7/8 TO 47 5/8 THE MAKER OF COMPUTER PRODUCTS SAID THAT PROFIT IN THE FOURTH QUARTER SWELLED TO 54 CENTS A SHARE FROM 24 CENTS A YEAR EARLIER NEXTEL COMMUNICATIONS FELL 2 TO 38 1/4 ON NASDAQ PAINEWEBBER DOWNGRADED THE STOCK TO NEUTRAL FROM ATTRACTIVE CROWN CORK & SEAL ROSE 1/4 TO 34 3/4 IN HEAVY TRADING GOLDMAN SACHS ADDED THE METAL CAN MAKER'S STOCK TO ITS PRIORITY LIST CROWN CORK ALREADY HAD BEEN ON GOLDMAN'S RECOMMENDED LIST 9309150108 930915 NEW STUDY LINKS CHILDREN'S PROBLEMS TO FREQUENT MOVES KIDS IN MOBILE FAMILIES PERFORM WORSE IN SCHOOL AND HAVE MORE BEHAVIORAL TROUBLES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL CHILDREN OF FAMILIES THAT RELOCATE FREQUENTLY PERFORM MORE POORLY AT SCHOOL AND ARE AFFECTED BY A HIGHER INCIDENCE OF BEHAVIORAL PROBLEMS A NEW STUDY HAS FOUND THE STUDY PUBLISHED TODAY IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION SHOWED THAT 23 OF CHILDREN WHOSE FAMILIES FREQUENTLY MOVED HAD TO REPEAT A GRADE COMPARED WITH 12 OF CHILDREN WHO NEVER MOVED OR DID SO INFREQUENTLY ALSO 18 OF CHILDREN WHO MOVED OFTEN SUFFERED AT LEAST FOUR BEHAVIORAL PROBLEMS COMPARED WITH 7 OF CHILDREN WHO DIDN'T MOVE OFTEN AFTER DISCOUNTING THE POSSIBLE EFFECT OF OTHER VARIABLES THAT COULD HAVE A DETRIMENTAL EFFECT ON CHILDREN INCLUDING FAMILY INCOME RACE SEX OR FAMILY STRUCTURE THE STUDY CONCLUDED THAT CHILDREN WHO MOVED WERE 35 MORE LIKELY TO HAVE FAILED A GRADE AND 77 MORE LIKELY TO HAVE FOUR OR MORE BEHAVIORAL PROBLEMS MOVING IS A DISRUPTIVE EXPERIENCE BECAUSE A CHILD HAS TO ADJUST TO NEW FRIENDS A NEW SCHOOL AND A NEW NEIGHBORHOOD SAID PAUL NEWACHECK OF THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO'S SCHOOL OF MEDICINE ONE OF THE AUTHORS OF THE STUDY ALTHOUGH PREVIOUS STUDIES HAD INCLUDED THE EFFECT OF RELOCATION ON A CHILD'S BEHAVIOR AND SCHOOL PERFORMANCE THIS IS THE FIRST STUDY TO ISOLATE THE EFFECT OF FREQUENT MOVES FROM THE OTHER VARIABLES WHILE THE FINDINGS MAY NOT APPEAR TO BE SURPRISING THIS IS STRONG EVIDENCE OF HOW STRESSFUL MOVING CAN BE FOR A CHILD DR NEWACHECK SAID US FAMILIES ARE HIGHLY MOBILE WITH RELOCATION RATES DOUBLE THOSE IN BRITAIN AND GERMANY ACCORDING TO THE STUDY 19 OF AMERICANS MOVE EACH YEAR ALTHOUGH THAT FIGURE INCLUDES INDIVIDUALS LEAD RESEARCHER DAVID WOOD OF THE PEDIATRICS DEPARTMENT AT CEDARSSINAI MEDICAL CENTER IN LOS ANGELES SAID THE STUDY SHOULD ALERT PHYSICIANS AND PARENTS TO THE POSSIBLE STRESSES OF FREQUENT MOVES THAT MAY AFFECT A CHILD'S SCHOOL PERFORMANCE HEALTH OR BEHAVIOR IT'S A RISK FACTOR JUST LIKE POVERTY HE SAID POOR FAMILIES MOVE 50 TO 100 MORE OFTEN THAN WELLOFF FAMILIES ACCORDING TO THE STUDY THROUGHOUT OUR HISTORY POOR AND MINORITY FAMILIES HAVE BEEN FORCED TO MOVE FOR NEFARIOUS REASONS SUCH AS ECONOMIC DEPRIVATION EVICTION AND RACISM THIS SHADOW SIDE OF AMERICAN MOBILITY AND ITS RELATIONSHIP TO RACE AND POVERTY ARE ONLY NOW BEING BETTER UNDERSTOOD THE RESEARCHERS SAID THE STUDY ALSO FOUND THAT CHILDREN IN WHITE FAMILIES MOVED MORE OFTEN THAN THOSE IN BLACK OR HISPANIC FAMILIES AND CHILDREN IN FAMILIES HEADED BY SINGLE PARENTS MOVED MORE OFTEN THAN THOSE RAISED BY TWO PARENTS THE STUDY WAS BASED ON DATA FROM ALMOST 10000 CHILDREN SIX TO 17 YEARS OLD 9309150107 930915 COMMERCE AGENCY ACCUSED ON EXPORTS ALLOWED FOR IRAN BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF A HOUSE FOREIGN AFFAIRS SUBCOMMITTEE ACCUSED THE COMMERCE DEPARTMENT OF AUTHORIZING AN INCREASED FLOW OF HIGHTECHNOLOGY EXPORTS FROM THE US TO IRAN IN AN APPARENT VIOLATION OF TOUGH NEW RESTRICTIONS IMPOSED BY CONGRESS REP TOM LANTOS SAID 461 MILLION OF EXPORTS WAS SHIPPED TO IRAN BETWEEN NOVEMBER 1992 AND LAST MAY UNDER A PROVISION THAT DOESN'T REQUIRE AN INDIVIDUAL EXPORT LICENSE BEFORE THEN HE SAID 60 OF US EXPORTS TO IRAN REQUIRED SUCH A LICENSE BUT SINCE THAT TIME THE COMMERCE DEPARTMENT HAS IMPOSED THE LICENSING REQUIREMENT ON LESS THAN 3 EITHER WE ARE SHIPPING INFERIOR GOODS OR SOMEBODY IS TELLING US A COCKANDBULL STORY THE CALIFORNIA DEMOCRAT CONTENDED DURING A SUBCOMMITTEE HEARING HE SAID GOVERNMENT DOCUMENTS SHOW RECENT SALES INCLUDED HIGHTECHNOLOGY ITEMS SUCH AS CENTRIFUGE PARTS TURBOJET ENGINES AND A 907500 COMPUTER ALL OF THE EXPORTS ACCORDING TO THE SUBCOMMITTEE CHAIRMAN WERE ALLOWED TO BE SHIPPED UNDER A GENERAL LICENSING CATEGORY CALLED GDEST THAT DOESN'T TRIGGER AN EXAMINATION BY THE STATE AND DEFENSE DEPARTMENTS AND US INTELLIGENCE AGENCIES REP LANTOS NOTED THAT A LAW PASSED LAST OCTOBER APPLIED TOUGH NEW EXPORT RESTRICTIONS ON IRAN BECAUSE OF ITS DEALINGS WITH TERRORIST GROUPS AND ITS ONGOING DEVELOPMENT OF WEAPONS OF MASS DESTRUCTION AFTER THE LAW WAS ENACTED HE SAID THE NUMBER OF INDIVIDUAL LICENSES ISSUED BY THE COMMERCE DEPARTMENT'S BUREAU OF EXPORT ADMINISTRATION FOR IRANIANBOUND GOODS DROPPED SHARPLY BUT SALES UNDER GDEST SUDDENLY EXPANDED WHEN IT COMES TO PROLIFERATION CONTROLS THE COMMERCE DEPARTMENT HAS APPARENTLY DECIDED IT WOULD EXERCISE A DON'T ASK DON'T TELL' POLICY REP LANTOS QUIPPED A COMMERCE DEPARTMENT OFFICIAL DENIED THAT THE AGENCY HAD ISSUED EXPORT LICENSES IN VIOLATION OF THE TRADE RESTRICTIONS THE LAW DOES NOT PROHIBIT COMPANIES FROM SELLING GDEST ITEMS TO IRAN SAID THE OFFICIAL WHO ADDED THAT EXPORTS UNDER THE CATEGORY HAVE INCREASED GDEST HE SAID WORKS AS A KIND OF HONOR SYSTEM RELYING ON COMPANIES TO DECLARE WHEN A SHIPMENT INVOLVES SENSITIVE TECHNOLOGY THE OFFICIAL ASKED NOT TO BE IDENTIFIED 9309150106 930915 BUSINESS BRIEF SCORE BOARD INC CAPITAL CITIES UNIT TO CARRY SPORTS SHOPPING PROGRAM SCORE BOARD INC SAID IT REACHED AN AGREEMENT TO DEVELOP AND SUPPLY SPORTS AND ENTERTAINMENT COLLECTIBLES FOR WEEKEND AFTERNOON TELEVISED SHOPPING SHOWS OF CAPITAL CITIES/ABC INC'S ESPN INC UNIT THE SHOW IS TO BE TELECAST ON ESPN2 THE CABLE SPORTS NETWORK THAT BEGINS OPERATION OCT 1 THE COMPANIES SAID FINANCIAL TERMS WEREN'T DISCLOSED SCORE BOARD CHERRY HILL NJ SAID THE SHOW POWER2 SHOP WILL HAVE ITS PREMIERE OCT 2 AND INCLUDE FOUR HOURS OF PROGRAMMING EACH WEEKEND THE PROGRAM WILL BE AIMED AT VIEWERS 18 TO 34 YEARS OLD AND SELL SPORTS MERCHANDISE AND COLLECTIBLES SUCH AS AUTOGRAPHED BASEBALLS AND JERSEYS 9309150105 930915 ALLSTAR ANALYSTS 1993 SURVEY PROPERTY AND CASUALTY INSURANCE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL WAITING FOR THE FABLED TURN IN THE PROPERTY AND CASUALTY INSURANCE CYCLE HAS BEEN LIKE WAITING FOR GODOT WHEN HURRICANE ANDREW HIT FLORIDA LAST YEAR SOME INVESTORS STARTED TO BID UP THE SECTOR'S STOCKS ON THE THEORY THAT NOW INSURERS WOULD HAVE TO STOP THEIR FRATRICIDAL PRICE WARS AND CHARGE ENOUGH TO MAKE AN UNDERWRITING PROFIT THAT HASN'T HAPPENED TO ANY MARKED DEGREE SO SOME SKEPTICS VIEW THE WHOLE STOCK GROUP AS UNPROMISING BUT RONALD FRANK OF SMITH BARNEY THE NO 1 STOCK PICKER IN THE GROUP FOR 1992 BELIEVES INVESTORS CAN MAKE MONEY BY BUYING SELECTED ISSUES WE'RE TRYING TO HIT SINGLES AND DOUBLES AND NOT HOME RUNS SAYS MR FRANK LAST YEAR HE STAYED AWAY FROM THE BIGGEST MULTILINE COMPANIES LIKE AETNA CIGNA AND TRAVELERS AND SCORED BIG IN FRONTIER INSURANCE GROUP AMERICAN INTERNATIONAL GROUP AND CHUBB THESE DAYS HE LIKES LINCOLN NATIONAL WHICH HAS SURPRISED WALL STREET IN RECENT QUARTERS WITH BETTERTHANEXPECTED EARNINGS THE COMPANY HAS LEFT THE MANAGEDCARE BUSINESS CLEANED UP ITS PROPERTY AND CASUALTY BUSINESS AND IS NOW WORKING ON ITS LIFE INSURANCE COMPANY MR FRANK ALSO LIKES SAFECO WHICH HAS RESOLVED A PRICING DISPUTE WITH REGULATORS IN CALIFORNIA ITS BIGGEST MARKET AMERICAN INTERNATIONAL GROUP WHOSE OVERSEAS OPERATIONS CONTINUE TO GROW STRONGLY AND INTEGON WHICH HE THINKS CAN GAIN MARKET SHARE IN CAR INSURANCE FOR HIGHRISK DRIVERS WILLIAM BITTERLI OF NORTHINGTON PARTNERS GRABBED SECOND PLACE IN THE 1992 STOCK PICKING DERBY HIS BIGGEST WINNER WAS PROGRESSIVE CORP AND HE REMAINS A FAN BASED IN BEECHWOOD OHIO PROGRESSIVE ALSO INSURES INSURES HIGHRISK DRIVERS THE STREET ESTIMATES ARE ALWAYS LOW ON THIS COMPANY SAYS MR BITTERLI HE SAYS PROGRESSIVE HAS GOTTEN OUT OF POORERPERFORMING BUSINESSES SUCH AS TRUCKING INSURANCE AND SEVERED A COSTLY INVESTMENT CONTRACT WITH ALFRED LERNER ITS FORMER CHAIRMAN MR BITTERLI THINKS HIGHLY OF HARTFORD STEAM BOILER INSPECTION & INSURANCE IT HAS TWO MAJOR BUSINESSES BOILER INSURANCE AND ENGINEERING SERVICES PRICES FOR BOILER INSURANCE HAVE BEEN RISING AS FOR ENGINEERING SERVICES EARNINGS FROM THAT SEGMENT WILL PICK UP AFTER WASHINGTON FINALIZES NEW ENVIRONMENTAL REGULATIONS MR BITTERLI BELIEVES ANOTHER OF HIS PICKS IS WR BERKLEY A GREENWICH CONN INSURER WITH A GOOD RECORD FOR ACQUISITIONS THIRDRANKED HARRY FONG OF CONNING & CO HAD A BIG HIT LAST YEAR IN PHOENIX REINSURANCE HE STILL LIKES IT AND ALSO IS RECOMMENDING GENERAL RE OF STAMFORD CONN HE CALLS GENERAL RE A COMPANY KNOWN FOR SKILLFUL UNDERWRITING AND CREDIBLE RESERVES THE CLASS ACT AMONG REINSURERS REINSURANCE PRICES HAVE DOUBLED IN THE PAST THREE YEARS AND HAVE RISEN 40 JUST SINCE HURRICANE ANDREW MR FONG ALSO PLUMPS FOR MERCURY GENERAL WHICH HAS BEEN GAINING MARKET SHARE IN THE CALIFORNIA AUTO INSURANCE MARKET AND ST PAUL COS WHICH IS BENEFITING FROM HIGHER RATES IN SEVERAL LINES 9309150104 930915 ALLSTAR ANALYSTS 1993 SURVEY COMPUTER HARDWARE BY LAURIE HAYS AND MICHAEL W MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL COMPUTER HARDWARE ALLSTARS GENERALLY PICK WINNERS BASED ON TWO KEY FACTORS HOW UNIQUE AND CRUCIAL IS THE PRODUCT LINE AND HOW COSTCOMPETITIVE IS THE COMPANY SO FAR INTERNATIONAL BUSINESS MACHINES ISN'T ON ANYONE'S TURNAROUND LIST FOR THE NEAR FUTURE BUT THE ANALYSTS' OUTLOOK FOR THE INDUSTRY IN GENERAL ISN'T BAD THEY SAY TECHNOLOGY IS ONE PART OF THE ECONOMY THAT'S GROWING JOHN C LEVINSON WHO LAST YEAR WAS AN ANALYST WITH GOLDMAN SACHS RANKED FIRST IN COMPUTERHARDWARE STOCK PICKING WITH A JUMBO GAIN IN SEQUENT COMPUTER AND A NICELY TIMED CALL ON HEWLETTPACKARD MR LEVINSON HAS SINCE BECOME A MONEY MANAGER WITH LYNCH & MAYER TODAY COMPAQ COMPUTER IS HIS FAVORITE PICK IN THE GROUP THE PERSONALCOMPUTER MAKER HAS GOTTEN ITS COSTS IN LINE HE SAYS AND THE PC PRICE WARS WON'T RAGE FOREVER AT SOME POINT FRAGILE COMPETITORS EITHER WILL GO BUST OR STOP CUTTING PRICES SO SEVERELY IN ADDITION HE LIKES COMPAQ'S FLOOD OF NEW PRODUCTS HE ALSO LIKES DSC COMMUNICATIONS A NETWORKING COMPANY THAT MR LEVINSON CALLS AN ARMS SUPPLIER IN THE WORLD WAR BETWEEN CABLE TELEPHONE AND CELLUAR COMPANIES AND PYXIS WHICH MAKES A MACHINE THAT DISPENSES DRUGS IN HOSPITALS ON HIS DISLIKE LIST MR LEVINSON PUTS CRAY RESEARCH A SUPERCOMPUTER MAKER WHOSE STOCK HAS FALLEN MORE THAN 75 SINCE 1987 AS FOR IBM HE SAYS I WOULDN'T TOUCH IT THE STOCK IS GOING NOWHERE CURT ROHRMAN OF CS FIRST BOSTON FINISHED SECOND WITH GAINS LAST YEAR IN UNISYS SUN MICROSYSTEMS AND SEQUENT COMPUTER HE SUFFERED ONLY A SMALL LOSS IN IBM HE LIKED SUN MICRO FOR ITS NEW WORKSTATIONS AND UNISYS ONCE ON THE BRINK OF EXTINCTION AS A TURNAROUND MR ROHRMAN STILL HAS A BUY ON UNISYS HE ALSO CONTINUES TO RECOMMEND SEQUENT COMPUTER WHOSE SERVERS THE HUBS OF COMPUTER NETWORKS BENEFIT FROM THE MOVE TOWARD OPEN SYSTEMS WHICH CAN USE MANY DIFFERENT KINDS OF SOFTWARE HE ALSO LIKES FOUR SUPERSERVER MAKERS WHICH MAKE SOUPEDUP SERVERS FOR NETWORKS PARALLAN TRICORD AUSPEX AND NETFRAME SYSTEMS SECULAR GROWTH IN THIS NICHE IS GOING TO BE 40 TO 45 OVER THE NEXT FEW YEARS HE SAYS HE EXPECTS THAT THESE COMPANIES' PROFITS WILL BE COMING OUT OF THE POCKETS OF OLD GIANTS SUCH AS IBM DIGITAL EQUIPMENT AND HEWLETTPACKARD WHOSE OUTLOOK HE SEES AS STILL DIFFICULT VERY BEARISH RAYMOND REED OF JANNEY MONTGOMERY SCOTT TOOK THIRD PLACE WITH GAINS IN SUN MICROSYSTEMS AND HEWLETTPACKARD HIS ONLY PICK IN THE GROUP AT THE MOMENT IS SUN MICROSYSTEMS THE WORKSTATION MAKER SUN REPORTED A FANTASTIC JUNE QUARTER AND THE STOCK REALLY HASN'T DONE ANYTHING MR REED SAYS INVESTORS HE THINKS ARE UNDULY WORRIED ABOUT POTENTIAL NEW COMPETITION FROM AMONG OTHERS MICROSOFT AND INTEL BUT MR REED SAYS SUN IS POSITIONED FINANCIALLY AND ORGANIZATIONALLY TO GENERATE GOOD PROFITS EVEN AGAINST TOUGH COMPETITION 9309150103 930915 ALLSTAR ANALYSTS 1993 SURVEY BANKS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL BANK STOCKS HAVE HAD TWO GREAT YEARS SHOULD INVESTORS GO FOR THREE ONLY SELECTIVELY SAY THE INDUSTRY'S LEADING ANALYSTS NO LONGER THEY SAY CAN INVESTORS BUY ALMOST ANY BANK STOCK AND WATCH IT DOUBLE IN PRICE THEY ARE LOOKING FOR BANKS THAT SHOW LOAN GROWTH THAT HAVE ATTRACTIVE NICHE BUSINESSES OR THAT COULD BE BOUGHT OUT IN THE CONTINUING ROUND OF BANKACQUISITION MUSICAL CHAIRS IT'S MUCH MORE OF A STOCKPICKING GAME RATHER THAN A GROUP PLAY SAYS LAWRENCE COHN BANKING ANALYST AT PAINEWEBBER IN 1992 MR COHN PICKED HIS WAY TO THE TOP SPOT AMONG MONEYCENTER BANK ANALYSTS POUNDING THE TABLE FOR BANK OF NEW YORK CITICORP AND CHASE MANHATTAN MR COHN IS STILL FOND OF CHASE MANHATTAN CALLING IT AND BANK OF BOSTON THE RODNEY DANGERFIELDS OF BANK STOCKS THEY ARE BOTH CHEAP STOCKS THAT GET NO RESPECT HE SAYS BUT ASSET QUALITY IS ON THE MEND AT BOTH BANKS AND MANAGEMENTS HAVE AN IMPROVED FOCUS HE'S LOOKING FOR CHASE TO EARN 475 A SHARE NEXT YEAR AND BANK OF BOSTON TO EARN 360 YOU'RE NOT STEPPING DOWN IN QUALITY AS FAR AS THE MARKET THINKS YOU ARE HE SAYS IN ADDITION HE LIKES BANKAMERICA HE BELIEVES THE STOCK MARKET HAS BECOME TOO BEARISH ON THE MOUNTING COSTS ASSOCIATED WITH BANKAMERICA'S ACQUISITION OF SECURITY PACIFIC HE'S LOOKING FOR BANKAMERICA TO EARN 590 NEXT YEAR AND FOR ITS STOCK TO HIT CLOSE TO 60 BY THE END OF 1994 THE COMPANY HE SAYS IS ON THE VERGE OF SHOWING SOME GOOD NUMBERS JUST AS THE MARKET HAS THROWN IN THE TOWEL CHERYL SWAIM BANKING ANALYST AT OPPENHEIMER SNAGGED SECOND PLACE THANKS TO A NICE RISE IN FIRST INTERSTATE BANCORP THE FUNDAMENTALS OF THE INDUSTRY CONTINUE TO LOOK POSITIVE SHE SAYS MARGINS COULD FALL AND EARNINGS COULD STILL SHOW GROWTH NOW THAT LOAN DEMAND SEEMS TO BE PICKING UP OPPENHEIMER IS RECOMMENDING FIRST CHICAGO AND FIRST INTERSTATE BASED ON CONTINUED REDUCTION IN BADLOAN COSTS FIRST CHICAGO HAS WRITTEN DOWN 2 BILLION IN TROUBLED REAL ESTATE WHICH WILL SHARPLY REDUCE ITS FUTURE PROVISION FOR LOAN LOSSES REVENUE GROWTH AT FIRST INTERSTATE WHICH HAD STALLED OUT MAY RESUME SOON MS SWAIM BELIEVES ROBERT ALBERTSON BANKING ANALYST AT GOLDMAN SACHS TOOK THE NO 3 SPOT WITH BUYS ON CITICORP AND WELLS FARGO HE STILL LIKES CITICORP IT STILL HAS A LONG WAY TO GO BUT IS ALSO RECOMMENDING A NEW LIST OF BANKS THAT WILL BENEFIT FROM AN UPTICK IN LOAN GROWTH LAST WEDNESDAY MR ALBERTSON PLAYED HOST TO A CONFERENCE CALL OF 150 CLIENTS IN WHICH HE ARGUED THAT BANK STOCKS DON'T PEAK UNTIL THE LENDING CYCLE PEAKS AND THAT HE THINKS IS A LONG WAY OFF HE BELIEVES BANK STOCKS COULD APPRECIATE 35 TO 50 FROM CURRENT LEVELS IT'S TIME TO SHIFT INTO CYCLICALLY DEPENDENT REVENUE STORY BANKS HE SAYS SUGGESTING PNC BANK NATIONSBANK BANC ONE AND BANKAMERICA 9309150102 930915 ALLSTAR ANALYSTS 1993 SURVEY AUTOMOBILES AND AUTO PARTS BY ROBERT L SIMSON STAFF REPORTER OF THE WALL STREET JOURNAL THE BEST THING AN AUTO ANALYST COULD DO IN 1992 WAS RECOMMEND CHRYSLER EARLY AND OFTEN CHRYSLER STOCK NEARLY TRIPLED RONALD A GLANTZ OF DEAN WITTER REYNOLDS DID JUST THAT AND ALSO NOTCHED HUGE GAINS IN AUTOPARTS MAKERS EXCEL INDUSTRIES AND SUPERIOR INDUSTRIES WITH THOSE RESULTS IN HIS POCKET IT HARDLY MATTERED THAT MR GLANTZ'S TIMING SPUTTERED ON FORD AND GENERAL MOTORS HE CRUISED TO THE TOP RANK OF AUTOINDUSTRY STOCK PICKERS TODAY MR GLANTZ AND OTHER ALLSTARS STILL SEE PLENTY OF UPSIDE POTENTIAL IN THE AUTO GROUP THAT'S UNUSUAL BECAUSE THE GROUP BOTTOMED IN DECEMBER 1991 20 MONTHS AGO AUTO STOCKS NORMALLY OUTPERFORM THE MARKET FOR NINE TO 18 MONTHS FROM THE CYCLICAL BOTTOM SAYS MR GLANTZ THIS TIME HE THINKS THE GOOD TIMES WILL ROLL LONGER AND CHRYSLER IS STILL HIS FAVORITE CHRYSLER HAS THE MOST EXCITING PRODUCTS OF ANYONE MR GLANTZ SAYS RAVING ESPECIALLY ABOUT ITS NEW DODGE RAM FULLSIZED PICKUP TRUCK HE ALSO PREDICTS CHRYSLER WILL RAISE ITS DIVIDEND FROM THE PRESENT 60 CENTS A SHARE ANNUALLY MR GLANTZ STILL LIKES EXCEL INDUSTRIES ON THE GROUNDS THAT ITS MODULAR WINDOW ASSEMBLIES WILL SEIZE MORE BUSINESS AS AUTO MAKERS INCREASINGLY RELY ON SUPPLIERS TO CUT THEIR COSTS FOR SIMILAR REASONS HE SEES MANY AUTOPARTS MAKERS THAT SUPPLY MANUFACTURERS AS GOOD BUYS BUT HE WOULD AVOID GENUINE PARTS WHICH CONCENTRATES ON REPLACEMENT PARTS CARS ARE BETTER NOW HE SAYS SO WE SEE SLOWER GROWTH IN REPLACEMENT PARTS SECONDRANKED HARVEY HEINBACH OF MERRILL LYNCH MISSED THE START OF CHRYSLER'S RUN LAST YEAR BUT JUMPED ON BOARD IN TIME FOR HIS FOLLOWERS TO DOUBLE THEIR MONEY HE ALSO SCORED A NICE GAIN IN ECHLIN MR HEINBACH AGREES THAT THERE IS MORE TO GO IN THE AUTO AND AUTOPARTS RALLY VEHICLE SALES ARE STILL WELL BELOW NORMAL THE DOMESTICS WILL CONTINUE TO GAIN MARKET SHARE FOR A WHILE AND THE JAPANESE WILL HAVE TO RAISE PRICES TO COVER THE HIGHER VALUE OF THE YEN HE SAYS MR HEINBACH REMAINS A CHRYSLER FAN BUT HE'S NEARLY AS BULLISH ON FORD CITING ITS STRONG FINANCIAL CONDITION HEALTHY PENSION FUND AND LINEUP OF COMING NEW PRODUCTS TRUE EUROPE HAS BEEN A DRAIN AND PROFITS HAVEN'T KEPT PACE WITH SALES BUT MR HEINBACH THINKS MANAGEMENT IS POISED TO TURN THOSE PROBLEMS AROUND THIRDRANKED ALEXANDER P PARIS OF BARRINGTON RESEARCH WHO SPECIALIZES IN AUTOPARTS MAKERS HAD STRIKING GAINS IN EXCEL AND DONNELLY CORP LAST YEAR AT THE TOP OF HIS LIST TODAY IS WALBRO A LEADING SUPPLIER OF FUELINJECTION SYSTEMS CARS ARE SWITCHING ALMOST 100 TO FUEL INJECTION TO IMPROVE FUEL ECONOMY AND CUT POLLUTION HE OBSERVES WALBRO CAN PROFIT FROM THE TREND NOT ONLY IN NORTH AMERICA BUT ALSO IN EUROPE AND LATIN AMERICA THROUGH JOINT VENTURES STANDARD PRODUCTS A LEADING MAKER OF VARIOUS PLASTIC AND RUBBER AUTO PARTS IS PROBABLY ONE OF THE MOST PROFITABLE OF THE PARTS SUPPLIERS MR PARIS SAYS HE'S ALSO FOND OF SNAPON TOOLS WHICH IS EXPANDING ABROAD AND RADIATOR MAKER MODINE MANUFACTURING WHICH HE THINKS WILL CAPITALIZE ON THE AGING OF THE NATION'S CAR FLEET 9309150101 930915 ALLSTAR ANALYSTS 1993 SURVEY RETAILERS BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL FOR RETAILERS 1992 WAS A BREATH OF FRESH AIR AFTER YEARS OF STUMBLING ALONG RETAIL CHAINS BEGAN TO CHURN OUT PLEASANT SURPRISES IN SALES AND EARNINGS POSTELECTION EUPHORIA PROPELLED SHOPPERS INTO STORES DURING THE CRITICAL CHRISTMAS SEASON BUT THE HONEYMOON ABRUPTLY ENDED EARLY THIS YEAR CONCERNS ABOUT TAX INCREASES AND SLOW JOB GROWTH HAVE KEPT CONSUMERS AT HOME THEIR RETREAT HAS CAUGHT BOTH RETAILERS AND WALL STREET OFF GUARD IT'S A GOOD THING YOU'RE NOT LOOKING AT MY PICKS THIS YEAR SAYS HARRY G KATICA AN ANALYST WITH RAYMOND JAMES WHO WAS AMONG THE TOP TOP STOCK PICKERS IN THE INDUSTRY LAST YEAR TOPRANKED WAS JOHN CURTI OF SECURITIES CORP OF IOWA WHOSE BETS ON BEAT UP RETAILERS PAID OFF IN SPADES HE HAD A GIANT GAIN IN YOUNKERS A LARGE INCREASE IN BRADLEES AND A NICE PROFIT BY CATCHING A BOTTOM IN US SHOE MR CURTI SAYS HIS TWOANALYST FIRM MADE A BIGGER BET IN RETAILING THAN IN ANY OTHER INDUSTRY IN 1992 BUT THIS YEAR WITH THE WAY THE ECONOMY IS IT'S TOUGH FOR RETAILERS IT'S FRANKLY AN AREA WE'RE DEEMPHASIZING NOW HIS FAVORITE PICK NOW IS TANDY CORP AN UNDERDOG BECAUSE OF ITS ANEMIC AND ERRATIC EARNINGS HE EXPECTS TANDY'S STOCK TO RISE BECAUSE THE FORT WORTH TEXAS COMPANY IS SELLING ITS NONRETAILING UNITS AND EXPANDING WITH WHAT HE THINKS ARE PROMISING SUPERSTORE FORMATS ANOTHER PICK MERCANTILE STORES WHOSE STOCK MR CURTI CHARACTERIZES AS JUST SITTING THERE WITH MORE CONSUMERS STAYING HOME TO SAVE MONEY RETAILERS THAT SELL HOMEIMPROVEMENT AND HOMEDECORATION ITEMS ARE DOING WELL THAT HELPED TAMMIRA KUNTZ AN ANALYST WITH MORGAN KEEGAN IN MEMPHIS TENN WHO WATCHES SUCH COMPANIES LAND SECOND PLACE IN THE ALLSTAR STOCKPICKING ROSTER SHARES IN BOMBAY A FORT WORTH TEXAS HOMEFURNISHINGS RETAILER TRIPLED LAST YEAR I MET THE MANAGEMENT AT THE END OF '91 AND JUST LOVED 'EM THEY'RE GREAT GUYS MS KUNTZ SAYS I THOUGHT THEY HAD A GOOD VISION HEILIGMEYERS AND PIER 1 IMPORTS ALSO CONTRIBUTED TO HER STRONG SHOWING TODAY ONE OF HER FAVORITES IS HECHINGER A HOMEIMPROVEMENT COMPANY THAT HAS BEEN DOWN AND OUT BUT WHOSE NEW HOME PROJECT CENTER CONCEPT SEEMS TO BE WORKING MR KATICA OF RAYMOND JAMES WHO RANKED THIRD GENERALLY PICKS COMPANIES THAT EXPLOIT NICHE MARKETS LAST YEAR HE POUNDED THE TABLE FOR CIRCUIT CITY STORES AN APPLIANCE AND ELECTRONICS GOODS RETAILER WHOSE STOCK MORE THAN DOUBLED AT THE MOMENT MR KATICA IS RECOMMENDING ONLY A FEW RETAIL STOCKS ONE IS DISCOUNT AUTO PARTS WHOSE FORTUNES AREN'T DIRECTLY TIED TO AN ECONOMIC CYCLE BECAUSE PEOPLE ALWAYS HAVE TO BUY CAR PARTS HE EXPECTS THE LAKELAND FLA COMPANY'S EARNINGS TO RISE 25 ANNUALLY OVER THE NEXT FIVE YEARS HIS LONGSHOT IS SERVICE MERCHANDISE A GENERAL MERCHANDISER BASED IN BRENTWOOD TENN WE'RE BETTING THAT ALL CRITICS WILL BE WRONG AND CHRISTMAS WILL BE AT LEAST ACCEPTABLE MR KATICA SAYS 9309150100 930915 LAW LEGAL BEAT PLAN TO CUT CIVIL LITIGATION COSTS BLOCKED BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL JUDGES SEEKING TO STREAMLINE CIVIL LITIGATION AND REDUCE ITS COST APPEAR TO HAVE BEEN OUTMANEUVERED BY LAWYERS AND INDUSTRY GROUPS THAT OPPOSE THE JUDGES' PROPOSAL AFTER A PERIOD OF FIERCE LOBBYING CONGRESS IS MOVING TO REJECT THE FEDERAL JUDICIARY'S PLAN TO REQUIRE LITIGANTS TO SHARE WITH EACH OTHER KEY DOCUMENTS AND OTHER RELEVANT INFORMATION SOON AFTER A LEGAL COMPLAINT IS FILED THE AUTOMATIC DISCLOSURE REQUIREMENT WAS AIMED AT REDUCING FIGHTS OVER SUCH PRETRIAL DISCLOSURES AND SPEEDING THE PROCESS OF GETTING CASES TO TRIAL THE PLAN WAS AUTHORIZED LAST SPRING BY THE SUPREME COURT AS PART OF A PACKAGE OF RULE CHANGES THAT ARE SCHEDULED TO BECOME EFFECTIVE DEC 1 BUT MOUNTING OPPOSITION FROM LAWYERS AND A DECISION BY THE CLINTON ADMINISTRATION TO OPPOSE THE DISCLOSURE CONCEPT HAVE SPARKED THE MOVEMENT IN CONGRESS TO INTERVENE IN THE PROCESS A HOUSE JUDICIARY COMMITTEE SUBCOMMITTEE UNANIMOUSLY APPROVED LEGISLATION EARLIER THIS SUMMER THAT WOULD DELETE THE PROVISION FROM THE RULE CHANGES THE FULL COMMITTEE IS EXPECTED TO ENDORSE THE BILL LATER THIS MONTH I DON'T KNOW OF ANY OPPOSITION SAID NEW JERSEY DEMOCRAT WILLIAM J HUGHES CHAIRMAN OF THE HOUSE INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION SUBCOMMITTEE AND A COSPONSOR OF THE BILL THERE IS A GREAT DEAL OF CONSENSUS THAT WE SHOULD DEFER AT THIS POINT THE BILL STILL COULD BE DERAILED IN THE SENATE ALTHOUGH SUPPORT APPEARS STRONG FOR IT THERE AS WELL LOBBYISTS SAY THE MAIN IMPEDIMENT IS GETTING THE MATTER THROUGH BOTH HOUSES BY THE DEC 1 DEADLINE WHILE SUCH CONGRESSIONAL INTERVENTION ISN'T UNPRECEDENTED IT IS CONSIDERED HIGHLY UNUSUAL ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE US COURTS CONGRESS HAS BLOCKED RULE CHANGES ONLY FOUR TIMES OVER THE LAST 60 YEARS SOME JUDGES LIKE TO THINK IT IS A PREROGATIVE OF THE COURTS TO SET THEIR OWN GROUND RULES THE JUDICIARY LIKES TO THINK IT HAS GIVEN FULL AND COMPLETE AIRING TO ALL THE ISSUES SAID A SPOKESMAN AT THE SAME TIME FEW RULES HAVE PROVOKED SUCH A RANGE OF COMMENT REP HUGHES SAID HE WAS DELUGED BY PLAINTIFF AND DEFENSE FIRMS FROM BACK HOME WHO WANTED TO COME IN AND PRESENT THEIR VIEW ON IT THE LOBBYING WAS VERY INTENSIVE HE ADDED VERY FEW ISSUES GENERATE THAT KIND OF DEBATE BY MANDATING DISCLOSURE OF CORE DOCUMENTS WITNESSES AND OTHER DATA WHILE DISPENSING WITH THE NEED FOR FORMAL WRITTEN REQUESTS THE JUDGES HAD HOPED TO REDUCE THE COSTS OF THE FACTFINDING PORTION OF A LAWSUIT KNOWN AS DISCOVERY BUT INDUSTRY AND DEFENSE LAWYER GROUPS CONTEND SUCH A RULE UNFAIRLY EXPOSES COMPANIES TO SANCTIONS FOR FAILING TO VOLUNTEER POTENTIALLY DAMAGING EVIDENCE AND THEY HAVE ARGUED THAT THE RULE WOULD SPAWN COSTLY PERIPHERAL LITIGATION OVER WHAT INFORMATION HAD TO BE DISCLOSED TRADE GROUPS FOR THE ACCOUNTING CHEMICALS BANKING INSURANCE AND SECURITIES INDUSTRIES AMONG OTHERS HAD LINED UP IN OPPOSITION TO THE RULE REPRESENTED BY KIRKLAND & ELLIS'S ALFRED W CORTESE JR AND JAMES F FITZPATRICK OF ARNOLD & PORTER JUSTICE DEPARTMENT OFFICIALS MOREOVER HAVE EXPRESSED CONCERN THAT THE RULE WOULD INTERFERE WITH A 1990 LAW THAT REQUIRES FEDERAL JUDICIAL DISTRICTS TO EXPERIMENT WITH LITIGATION REFORMS INCLUDING DISCLOSURE OTHER OPPONENTS INCLUDE THE AMERICAN BAR ASSOCIATION AND RALPH NADER'S PUBLIC CITIZEN LITIGATION GROUP PROPONENTS OF THE RULE SAY ITS POTENTIAL DOWNSIDE HAS BEEN GREATLY EXAGGERATED AND SOME NOTE THAT LAWYERS HAVE A FINANCIAL INTEREST IN OPPOSING A PLAN THAT MIGHT SHORTEN COURT CASES AND REDUCE LAWYERS' BILLABLE HOURS BUT A STUDY RELEASED JUST THIS WEEK BY INSIDE LITIGATION AN INDUSTRY NEWSLETTER FOUND THAT USE OF DISCLOSURE IN THE ARIZONA STATE COURTS HAD BEEN WELLRECEIVED BY JUDGES AND LAWYERS REDUCING DISCOVERY MOTIONS AND CUTTING OUT GAMESMANSHIP BY ATTORNEYS WAYNE BRAZIL A US MAGISTRATE JUDGE IN SAN FRANCISCO WHERE DISCLOSURE HAS BEEN TRIED FOR ABOUT A YEAR SAID THE SKY DOES NOT FALL WHEN THESE KIND OF IDEAS ARE ADDED TO THE PROCEDURAL MIX NONETHELESS MR BRAZIL ADMITS I AM NOT OPTIMISTIC THAT THE RULE WILL SURVIVE REP HUGHES'S BILL WOULD ALSO DELETE A RULE CHANGE THAT WOULD HAVE ALLOWED A SINGLE PARTY IN A LAWSUIT TO DISPENSE WITH A STENOGRAPHIC TRANSCRIPTION OF DEPOSITIONS IN FAVOR OF AN AUDIO OR VISUAL RECORDING THE NATIONAL COURT REPORTERS ASSOCIATION HAD LOBBIED HARD FOR THE DELETION SEPARATE LEGISLATION HAS BEEN INTRODUCED IN THE HOUSE AND SENATE THAT WOULD PUT OFF CHANGES IN THE RULES TO SOFTEN THE IMPOSITION OF SANCTIONS FOR FRIVOLOUS LITIGATION ALTHOUGH THE OUTLOOK IS MUCH LESS CERTAIN ATTORNEYS WHO FILED MORE THAN 20 CLASS ACTIONS AGAINST GENERAL MOTORS CORP ARE EXPECTED TO SEEK 21 MILLION IN FEES UNDER A PROPOSED SETTLEMENT THAT WILL GIVE COUPONS TO OWNERS OF GM PICKUPS WITH SIDEMOUNTED GAS TANKS IN THE PROPOSED SETTLEMENT WHICH MUST BE APPROVED BY US JUDGE WILLIAM YOHN IN PHILADELPHIA AND BY STATE COURTS THROUGHOUT THE SOUTHEAST GM AGREED TO SEND 1000 COUPONS GOOD ON A NEW GM TRUCK TO THE ROUGHLY SIX MILLION OWNERS OF THE VEHICLES WHICH CRITICS SAY EXPLODE EASILY ON SIDEIMPACT GM WHICH CHANGED ITS PICKUP DESIGN IN 1988 SAYS ITS TRUCKS ARE SAFE TODAY ATTORNEYS SUING IN A CONSOLIDATED FEDERAL CASE ARE EXPECTED TO FILE FOR ROUGHLY 96 MILLION IN FEES AND EXPENSES LATER ATTORNEYS IN TEXAS ARE EXPECTED TO REQUEST BETWEEN 5 MILLION AND 7 MILLION AND ATTORNEYS WHO FILED 10 SEPARATE CASES IN THE SOUTHEAST ARE TO REQUEST 5 MILLION TIMOTHY CROWLEY AND SAM BAXTER THE ATTORNEYS WHO FILED A CLASS ACTION SUIT IN TEXAS WERE ABLE TO NEGOTIATE RELATIVELY HIGH FEES BECAUSE TEXAS JURIES ARE THOUGHT TO BE SYMPATHETIC TO PLAINTIFFS TEXAS HAS A HIGH CONCENTRATION OF THE TRUCKS AND THE TEXAS CASE WAS ADVANCING RAPIDLY WHEN THE PROPOSED SETTLEMENT WAS REACHED THERE HAD BEEN SOME PUBLIC SPECULATION PREVIOUSLY THAT ATTORNEY FEES WOULD TOTAL MORE THAN 30 MILLION PLAINTIFFS' ATTORNEYS SAID THE 21 MILLION IN FEES WAS MODEST AND NOTED THAT EVEN IF ONLY 10 OF THE 6 BILLION IN COUPONS ARE REDEEMED THE FEES WOULD STILL REPRESENT ONLY 35 OF THE TOTAL CRITICS OF THE SETTLEMENT HOWEVER CONTEND THAT THE COUPONS WILL BE VIRTUALLY WORTHLESS BECAUSE MOST OF THE TRUCK OWNERS CANNOT AFFORD TO PURCHASE A NEW VEHICLE EVEN WITH A DISCOUNT ROBERT D CHEELEY AN ATLANTA ATTORNEY WHO PLANS TO OBJECT TO THE SETTLEMENT SAID WHY NOT GIVE THE TRUCK OWNERS MONEY AND GIVE THE LAWYERS COUPONS MOREOVER MR CHEELEY SAID THE SETTLEMENT IS FLAWED BECAUSE IT WILL DO NOTHING TO REMOVE WHAT HE SEES AS DANGEROUS TRUCKS FROM THE ROAD UNDER THE PROPOSED SETTLEMENT WHICH REQUIRES COURT APPROVAL TRUCK OWNERS CAN SELL OR CONTINUE TO USE THEIR PICKUPS AFTER THEY REDEEM THEIR COUPONS SALOMON INC WON PRELIMINARY APPROVAL OF A SETTLEMENT IN WHICH IT WILL PAY AS MUCH AS 67 MILLION TO RID ITSELF OF A SCORE OF LAWSUITS ARISING FROM THE 1991 US TREASURYAUCTION BIDDING SCANDAL US JUDGE ROBERT P PATTERSON IN NEW YORK WILL HEAR ARGUMENTS NOV 23 ON WHETHER HE SHOULD GIVE FINAL APPROVAL TO THE AGREEMENT WHICH WAS ANNOUNCED IN JUNE UNDER THE AGREEMENT SALOMON WILL PAY 545 MILLION TO INVESTORS WHO BOUGHT CERTAIN SECURITIES INCLUDING CALL OPTIONS TO BUY SALOMON COMMON STOCK AND CLAIM THEY WERE HURT BY THE SCANDAL THE INVESTMENT BANK ALSO AGREED TO PAY AS MUCH AS 125 MILLION IN PLAINTIFFS' ATTORNEY FEES THE SETTLEMENT WILL BE PAID FROM A 100 MILLION RESTITUTION FUND SALOMON ESTABLISHED LAST YEAR SALOMON IN NEW YORK STILL FACES MORE THAN 10 CASES BROUGHT BY BUYERS OF TREASURY SECURITIES WHO'S NEWS WHITECOLLAR CRIMINAL DEFENSE LAWYER DAVID S KRAKOFF JOINED THE WASHINGTON OFFICE OF LAW FIRM BEVERIDGE & DIAMOND MR KRAKOFF PREVIOUSLY WAS SPECIAL COUNSEL AT NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM WILL TOM FORMERLY PARTNER IN THE WASHINGTON OFFICE OF ATLANTA LAW FIRM SUTHERLAND ASBILL & BRENNAN JOINED THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION AS COUNSELOR TO THE ASSISTANT ATTORNEY GENERAL CHILDREN'S ADVOCATES A PROGRAM TO TRAIN LAWSCHOOL STUDENTS SPECIALIZING IN CASES OF CHILD ABUSE AND NEGLECT HAS BEGUN AT LOYOLA UNIVERSITY CHICAGO THE CIVITAS CHILD LAW CENTER BELIEVED TO BE THE FIRST PROGRAM OF ITS KIND IN THE US WILL COMBINE LAW STUDIES WITH COURSES IN MEDICINE PSYCHOLOGY AND SOCIAL WORK PESTICIDE RULING WASHINGTON APPLE GROWERS LOST THEIR LAWSUIT AGAINST CBS INC OVER A NEWS REPORT ON POSSIBLE DANGERS OF THE PESTICIDE ALAR THE FARMERS CLAIMED THAT A 1989 60 MINUTES REPORT WHICH FOCUSED ON ALAR'S POTENTIAL DANGER TO CHILDREN DISPARAGED THEIR PRODUCT AND CAUSED MILLIONS OF DOLLARS IN LOSSES BUT A FEDERAL JUDGE DISMISSED THE CASE FINDING THAT THE GROWERS DIDN'T PROVE THAT CBS'S STATEMENTS WERE FALSE ALAR IS NO LONGER USED ON FOOD PRODUCTS IN THE US AN ATTORNEY FOR THE GROWERS SAID IT IS TOO EARLY TO SAY WHETHER THE DECISION WILL BE APPEALED DOUGLAS LAVIN IN DETROIT AND JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9309150099 930915 ALLSTAR ANALYSTS 1993 SURVEY CHEMICALS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL LIKE ANY CHEMICAL INDUSTRY ANALYST WORTH HIS OR HER SODIUM CHLORIDE PAUL LEMING REGULARLY GRINDS OUT REAMS OF DATA BUT THE KIDDER PEABODY ANALYST IS BEST KNOWN FOR HIS OFTENCAUSTIC COMMENTS THAT BURN THROUGH THE CLUTTER OF INFORMATION RIGHT NOW MR LEMING SAYS CHEMICAL STOCKS AFFORD MEDIOCRE INVESTMENT OPPORTUNITIES AS TOO LITTLE CUSTOMER DEMAND FOR CHEMICALS CHASES TOO MUCH PRODUCTION CAPACITY AROUND THE WORLD MR LEMING RANKED FIRST IN CHEMICAL INDUSTRY STOCK PICKING LAST YEAR RACKING UP GAINS IN WR GRACE PPG INDUSTRIES AND ROHM & HAAS BUT THIS YEAR CHEMICAL SHARES MAKE HIM YAWN WHEN PRESSED HE GIVES DOW CHEMICAL A LUKEWARM ENDORSEMENT AS THE BEST OF A HOHUM BUNCH EVERYTHING THAT COULD GO WRONG HAS GONE WRONG FOR DOW ALREADY HE SAYS THE CONVENTIONAL OVERVIEW ON THE CHEMICAL INDUSTRY GOES LIKE THIS SHIPPING VOLUMES UP PRICES FLAT TO DOWN JUST WAIT TIL THOSE EUROPEAN ECONOMIES RECOVER AND SEVERAL OF MR LEMING'S COMPETITORS HAVE BEEN TOUTING THE INDUSTRY'S COSTCUTTING DRIVE OF THE PAST FEW YEARS AS A REASON TO OWN CHEMICAL STOCKS BUT MR LEMING THINKS COST CUTTING IS REACHING A POINT OF DIMINISHING RETURNS FOR EXAMPLE HE SAYS DUPONT HAS BEEN BATTLING ITS FIXED COSTS FOR SEVERAL YEARS YET EARNINGS STAY PUT CJ LAWRENCE'S DONALD PATTISON RANKED SECOND IN 1992 AMONG CHEMICALINDUSTRY STOCK PICKERS WITH NICE GAINS IN PPG INDUSTRIES AND BORDEN CHEMICALS & PLASTICS HE OFTEN EMPHASIZES SMALLER COMPANIES THAT DON'T GET THE SATURATION RESEARCH COVERAGE BIG COMPANIES RECEIVE TJ INTERNATIONAL OF BOISE IDAHO IS ONE EXAMPLE THE COMPANY TAKES WOOD FROM ASPEN TREES AND MIXES IT WITH ADHESIVES TO PRODUCE A SYNTHETIC WOOD STRONGER THAN DOUGLAS FIR MR PATTISON SAYS THE END PRODUCT IS USED INCREASINGLY IN HOME CONSTRUCTION CITING ONE HOUSINGINDUSTRY YARDSTICK OF SUCCESS MR PATTISON SAYS TJ INTERNATIONAL LAST YEAR HAD 115 OF SALES FOR EACH HOUSING START AND THIS YEAR THE RATE IS ABOUT 160 PER START MR PATTISON ALSO LIKES MATERIAL SCIENCES OF ELK GROVE VILLAGE ILL WHICH MAKES SPECIAL COATINGS AND PLASTICS AND MAPCO BASED IN TULSA OKLA WHICH SUPPLIES NATURALGAS LIQUIDS ETHANE PROPANE AND BUTANE TO CHEMICALINDUSTRY CUSTOMERS ALONG THE GULF COAST THIRDRANKED STOCK PICKER JAMES H WILBUR AT SMITH BARNEY SHEARSON DISAGREES WITH TOPRANKED MR LEMING IN THAT HE THINKS THE INDUSTRY'S COST CUTTING WILL PAY OFF IT DID LAST YEAR FOR HERCULES AND WITCO HE SAYS BOTH COMPANIES ALSO IMPROVED THEIR PRODUCT LINES BY JUDICIOUS SALES AND PURCHASES WITH THE ECONOMY LOOKING TREACHEROUS HE SAYS I WAS LOOKING FOR THOSE CORPORATIONS THAT WERE MANAGING THEIR OWN DESTINY MR WILBUR STILL HAS BUYS ON HERCULES AND WITCO AND ALSO LIKES BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES IT'S CUTTING COSTS AND IT ALSO STANDS TO BENEFIT MORE DIRECTLY THAN US COMPANIES FROM THE EXPECTED REBOUND IN THE EUROPEAN ECONOMY HE SAYS 9309150098 930915 ALLSTAR ANALYSTS 1993 SURVEY CONGLOMERATES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL CONGLOMERATES HAVEN'T BEEN PORTFOLIO MANAGERS' DARLINGS FOR YEARS THEIR ASSORTED BUSINESSES CAN SUGGEST CHAOS OR AT LEAST INEFFICIENCY OFTEN THEIR THRIVING OPERATIONS ARE OBSCURED BY LESS SUCCESSFUL ONES AND UNLESS AN ANALYST TRULY ENJOYS BEING A JACKOFALLTRADES CONGLOMERATES ARE NOTORIOUSLY HARD TO ANALYZE AND FOLLOW AS A RESULT THE STOCKS OF MOST CONGLOMERATES ARE UNDERVALUED SAYS JACK MODZELEWSKI OF PAINEWEBBER WHO TOPPED CONGLOMERATE ANALYSTS IN STOCK PICKING LAST YEAR MR MODZELEWSKI'S RISE TO THE TOP IN 1992 WAS HELPED BY GOOD CALLS ON ITT AND INSTRUMENT SYSTEMS TODAY ONE OF HIS FAVORITES IS TEXTRON WHICH HE EXPECTS TO SHOW CONSISTENT EARNINGS GROWTH PARTLY BECAUSE HE THINKS IT IS BETTER MANAGED THAN IT USED TO BE HE ALSO FAVORS INSTRUMENT SYSTEMS WHICH HAS REDUCED ITS DEBT CONSIDERABLY IN THE PAST THREE YEARS AND DIAL CORP WHICH HAS SHED SEVERAL OF ITS OPERATIONS TO CONCENTRATE MAINLY ON ITS NICHE IN CONSUMER PRODUCTS MR MODZELEWSKI NOTES THAT ALTHOUGH WALL STREET IS UNIFORMLY POSITIVE ABOUT ITT HONEYWELL AND ALLIEDSIGNAL IT MAKES HIM NERVOUS WHEN EVERYONE LIKES THE SAME STOCK HE PREFERS TO SEEK OUT ISSUES THAT ARE BEING IGNORED BY OTHERS COSTCUTTING AMONG CONGLOMERATES IS RIFE HE NOTES BUT THERE'S A LIMIT TO HOW MUCH PROFITS CAN BE BURNISHED BY CUTTING COSTS IT'S TRUE THAT A RISING TIDE LIFTS ALL BOATS BUT THERE'S VERY LITTLE WATER IN THIS SLUGGISH ECONOMY HE SAYS HE THINKS MOST ANALYSTS' EARNINGS ESTIMATES FOR CONGLOMERATES ARE TOO HIGH SECONDRANKED STOCK PICKER RICHARD A HENDERSON OF PERSHING CLEANED UP IN MASCOTECH LAST YEAR AND ALSO HAD NICE GAINS IN TRW AND GENERAL ELECTRIC HE BELIEVES A BOOST IN GOVERNMENT SPENDING ON INFRASTRUCTURE WILL ALLOW THE GES AND FLUORS OF THE WORLD TO OUTPERFORM THE OVERALL ECONOMY HE CONTINUES TO LIKE TRW AND MASCOTECH AND ALSO FAVORS TRIMAS IDEX MEYERS INDUSTRIES LUKENS AND R&B WHICH HE CALLS A GEM HE IS PARTICULARLY PARTIAL TO CONGLOMERATES THAT MAKE AUTO PARTS MORE CAR MAKERS ARE OUTSOURCING THEIR SUPPLIES OF AUTOMOTIVE PARTS HE SAYS AND JAPAN INC WILL INCREASE ITS PURCHASES OF AMERICANMADE PARTS IN RESPONSE TO POLITICAL PRESSURE EDWARD CIMILLUCA FORMERLY OF LEHMAN BROTHERS AND CURRENTLY DIRECTOR OF RESEARCH AT MONEY MANAGER J&W SELIGMAN SPECIALIZES IN MEDIUMSIZE CONGLOMERATES LOOKING FOR BUSINESS DIVISIONS WITHIN OTHERWISE MUNDANE CONGLOMERATES THAT LEAP OUT AND GET ME INTERESTED HE ALSO LIKES CONGLOMERATES THAT BUY BACK THEIR OWN STOCK A SIGN OF CONFIDENCE LAST YEAR MR CIMILLUCA RANKED THIRD AMONG CONGLOMERATESTOCK PICKERS THANKS IN LARGE PART TO A BIG GAIN IN STANDEX INTERNATIONAL HE STILL LIKES STANDEX BECAUSE OF ITS FREQUENT STOCK BUYBACKS ONE OF MR CIMILLUCA'S FAVORITES TODAY IS TYCO LABORATORIES A MAKER OF INDOOR SPRINKLERS AMONG A HOST OF OTHER THINGS HE EXPECTS THE RETROFITTING OF OLD BUILDINGS TO BOOST SPRINKLER SALES HE ALSO FAVORS HILLENBRAND INDUSTRIES A MAKER OF CASKETS FURNITURE AND LOCKS 9309150097 930915 ALLSTAR ANALYSTS 1993 SURVEY COSMETICS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL JOSEPH KOZLOFF DOESN'T USE MANY OF THE CONSUMER PRODUCTS HE FOLLOWS AS A COSMETICS ANALYST AT SMITH BARNEY SHEARSON I DON'T EVEN SHAVE THE BEARDED MR KOZLOFF SAYS THUS WHEN PICKING STOCKS MR KOZLOFF PUTS ASIDE PERSONAL BRAND PREFERENCES AND STICKS SOLELY TO FUNDAMENTALS GLEANED FROM CORPORATE FINANCIAL DOCUMENTS FOR THE PAST THREE YEARS HE'S BEEN RECOMMENDING AVON PRODUCTS WHICH HE CALLS A PURE AND TOTAL CASH MACHINE THE NEW YORK COSMETICS GIANT WIPED OUT 1 BILLION OF DEBT IN FOUR YEARS AND RAISED ITS DIVIDEND TO 180 A YEAR FROM 1 IN LESS THAN THREE YEARS HE ALSO LIKES AVON'S EXTENSIVE DISTRIBUTION NETWORK IN RAPIDLY EXPANDING THIRD WORLD MARKETS WHERE AVON NOW GENERATES MORE THAN HALF ITS SALES MR KOZLOFF DIDN'T FIND MUCH ELSE TO LIKE IN THE COSMETICS FIELD LAST YEAR BUT HE DIDN'T NEED TO AVON ROSE ENOUGH TO PUT MR KOZLOFF FIRST AMONG COSMETICSTOCK PICKERS ALICE BEEBE LONGLEY OF DONALDSON LUFKIN & JENRETTE PLACED SECOND SHE TOO LIKED AVON BUT HER AVERAGE GAIN WAS REDUCED SLIGHTLY BY HER OTHER PICKS WHICH INCLUDED NEUTROGENA GILLETTE HELENE CURTIS AND INTERNATIONAL FLAVORS & FRAGRANCES THIRDRANKED DIANA TEMPLE OF SALOMON BROTHERS HAD SEVERAL FAVORITES SIMILAR TO MS LONGLEY'S BUT WAS PULLED DOWN A BIT BY SMALL LOSSES IN ALBERTO CULVER AND BEAUTICONTROL LATELY MR KOZLOFF HAS TAKEN A SHINE TO AMERICAN SAFETY RAZOR A STAUNTON VA MARKETER OF PRIVATELABEL RAZORS AND BLADES THAT HE THINKS HAS BIG POTENTIAL IN OVERSEAS MARKETS HE SAYS AMERICAN SAFETY RECENTLY TRADING AT NINE TIMES ANNUAL EARNINGS IS A CHEAP STOCK AND THE ONLY ONE HE FOLLOWS WITH 50 UPSIDE EARNINGS POTENTIAL IN THE NEXT YEAR MS LONGLEY OF DONALDSON LUFKIN SAYS THE PRIME THEME OF MY STOCKS IS GLOBALIZATION HER CURRENT FAVORITES GILLETTE AVON AND PROCTER & GAMBLE ALL HAVE MUSHROOMING INTERNATIONAL FRANCHISES IN DEVELOPING COUNTRIES MARKETS THAT ARE LIKELY TO SEE RAPID GROWTH IN COMING YEARS SHE BELIEVES THAT OVERSEAS BUSINESS WILL HELP BOSTONBASED GILLETTE GROW ABOUT 15 ANNUALLY FOR THE NEXT THREE TO FIVE YEARS WHEN IT COMES TO RAZOR BLADES GILLETTE IS THE CLOSEST THING TO A MONOPOLY SHE SAYS MS TEMPLE WHO FOLLOWS COSMETICS STOCKS FOR SOLOMON WHERE SHE IS DIRECTOR OF RESEARCH GATHERS BRAND DATA EVERY TIME SHE SHOPS I LOOK TO SEE WHAT'S ON THE SHELF SHE SAYS BECAUSE FLUCTUATIONS IN MARKET SHARE ARE CLOSELY TIED TO PRODUCT AVAILABILITY AND BECAUSE THE COSMETICS INDUSTRY IS DRIVEN BY NEW PRODUCTS AGGRESSIVE COUPONING A SYMPTOM OF BLOATED INVENTORY IS ONE RED FLAG SHE WATCHES FOR WITH SHAMPOO FOR EXAMPLE SHE SAYS THAT WHEN THE COUPONS ARE 50 CENTS TO 1 OFF THEN YOU KNOW THERE MIGHT BE A PROBLEM MS TEMPLE CURRENTLY FAVORS THE STOCKS OF DIRECT SELLERS SUCH AS AVON AND PREMARK INTERNATIONAL A DEERFIELD ILL MAKER OF TUPPERWARE GIVEN THE SLUGGISH ECONOMY SHE SAYS THE KEY QUESTION SHE'S PUTTING TO COSMETICS COMPANIES IS WHAT ARE YOUR INVENTORY LEVELS AT RETAIL RETAILERS HAVE BEEN SLASHING COSMETICS INVENTORIES AND DEMANDING DISCOUNTS FROM MANUFACTURERS SHE EXPLAINS BECAUSE THEY BYPASS RETAILERS SHE BELIEVES DIRECT SELLERS ARE IN A BETTER POSITION TO CONTROL THEIR OWN DESTINY 9309150096 930915 ALLSTAR ANALYSTS 1993 SURVEY COMPUTER SOFTWARE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL PERSONALCOMPUTER SOFTWARE CONCERNS SUCH AS MICROSOFT AND LOTUS DEVELOPMENT SEEM TO GET ALL THE ATTENTION BUT THE ALLSTAR SOFTWARE ANALYSTS LAST YEAR WERE THOSE WHO PANNED FOR NUGGETS IN THE INDUSTRY'S LESS GLAMOROUS WATERS SOFTWARE FOR LARGER COMPUTER SYSTEMS AND SOFTWARESERVICE COMPANIES CHARLES PHILLIPS OF SOUNDVIEW FINANCIAL WAS THE SEGMENT'S TOP STOCK PICKER IN 1992 WITH A KINGSIZE GAIN IN INFORMIX AND LARGE ADVANCES IN SYBASE AND ORACLE SYSTEMS AMONG OTHERS MR PHILLIPS HAS SINCE SWITCHED JOBS MOVING TO KIDDER PEABODY HIS FAVORITES THESE DAYS ARE ORACLE SYSTEMS A DATABASESOFTWARE PRODUCER AND PEOPLESOFT A MAKER OF PERSONNELMANAGEMENT PROGRAMS THE DATABASE INDUSTRY IS GOING THROUGH A RESURGENCE IN DEMAND MR PHILLIPS SAYS MOREOVER ORACLE IS QUICKLY ADDING REVENUE FROM SERVICES SUCH AS CONSULTING AND HAS A LEG UP IN PROMISING NEW MARKETS SUCH AS LATIN AMERICA AND ASIA PEOPLESOFT IS PRACTICALLY THE ONLY COMPANY OFFERING HUMANRESOURCES SOFTWARE WHICH PERFORMS TASKS SUCH AS BENEFITS ADMINISTRATION PAYROLL AND JOBAPPLICANT TRACKING FOR COMPUTERS USING THE INCREASINGLY POPULAR UNIX OPERATING SYSTEM SAYS MR PHILLIPS PEOPLESOFT WILL INTRODUCE A LINE OF ACCOUNTING SOFTWARE LATER THIS YEAR AND MR PHILLIPS SEES A LOT OF SYNERGIES BETWEEN THE TWO PRODUCT LINES WILLIAM SHATTUCK OF MONTGOMERY SECURITIES PLACED SECOND WITH MAJOR GAINS IN INFORMIX ASK GROUP AND ORACLE ONE OF HIS CURRENT FAVORITES IS SYSTEM SOFTWARE WHICH MAKES SOFTWARE THAT MANAGES MANUFACTURING PROCESSES HE THINKS THE COMPANY HAS A WELLFORMULATED PLAN TO MOVE ITS SOFTWARE OVER TO OPEN OPERATING SYSTEMS LIKE UNIX AND WINDOWS NT A TASK IT SHOULD HAVE DONE BY SPRING MR SHATTUCK REMAINS FOND OF INFORMIX WHICH SPECIALIZES IN SOFTWARE THAT MANAGES DATABASES IT IS COMING OUT WITH ENHANCEMENTS TO ITS HIGHEND DATABASE THAT WILL MAKE IT COMPETITIVE IN MARKETS TRADITIONALLY DOMINATED BY ORACLE AND SYBASE HE SAYS AND HAS A BETTER DISTRIBUTION NETWORK THAN ITS COMPETITORS IN LOWEND DATABASES ROBERT BOLEN OF JC BRADFORD & CO WHO SPECIALIZES IN SOFTWARESERVICE COMPANIES SNAGGED THIRD PLACE HE POSTED A HUGE GAIN IN ACXIOM AND NICE RISES IN FIRST FINANCIAL MANAGEMENT NATIONAL DATA AND ANACOMP HE CONTINUES TO SPEAK HIGHLY OF BOTH ACXIOM AND FIRST FINANCIAL MANAGEMENT ACXIOM PROCESSES AND ANALYZES HUGE MAILING LISTS AND CUSTOMER LISTS IT USES PROPRIETARY SOFTWARE TO SORT DATABASES OF NAMES ADDRESSES CREDIT HISTORIES AND PURCHASING HISTORIES INTO LISTS FOR TARGETED MARKETING PROGRAMS FIRST FINANCIAL IS A DATAPROCESSING COMPANY WITH 14 BILLION IN 1992 SALES IT IS BIG IN CREDITCARD PROCESSING CHECKGUARANTEE SERVICES MICROFILM STORAGEANDRETRIEVAL SERVICES AND HEALTHCLAIMS PROCESSING BECAUSE 85 OF HEALTHCARE CLAIMS ARE STILL PROCESSED ON PAPER MR BOLEN FIGURES THERE'S ROOM FOR GROWTH IN THAT AREA AMONG MR BOLEN'S NEWER PICKS IS ENVOY A PROVIDER OF COMPUTER SYSTEMS FOR THE HEALTHCARE AND CREDIT CARDPROCESSING INDUSTRY ENVOY HE FIGURES SHOULD PROFIT FROM COMPUTERIZATION OF DOCTORS' PRACTICES PHARMACIES AND STATE FOODSTAMP PROGRAMS 9309150095 930915 ALLSTAR ANALYSTS 1993 SURVEY MEDICAL BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL ANALYSTS WATCHING THE MEDICAL INDUSTRY ARE LOOKING FOR THE COMPANIES THAT WILL BEST SURVIVE OR EVEN THRIVE IN THE UPHEAVALS SHAKING THE INDUSTRY ELEANOR KERNS A BOSTONBASED ANALYST FOR BALTIMORE'S ALEX BROWN WAS THE BEST STOCK PICKER IN THE MEDICAL GROUP IN 1992 THE GROUP INCLUDES ALL HEALTHCARE RELATED STOCKS EXCEPT FOR DRUG COMPANIES AND BIOTECH COMPANIES SHE POSTED MAJOR GAINS IN FOUNDATION HEALTH PACIFICARE HEALTH SYSTEMS UNITED HEALTHCARE AND US HEALTHCARE TODAY THERE'S MORE EMPHASIS ON THE APPROPRIATENESS AND QUALITY OF HEALTH CARE ON ITS COST/BENEFIT RATIO MS KERNS SAYS SHE THINKS THE DIRECT IMPACT OF ANY HEALTHCAREREFORM PROGRAMS FROM WASHINGTON IS AT LEAST A COUPLE OF YEARS OFF BUT THE INDUSTRY AS A WHOLE IS EVOLVING EVEN WITHOUT MARCHING ORDERS FROM WASHINGTON ONE TREND SHE SEES GATHERING STEAM IS CONSOLIDATION AS THE INDUSTRY EVOLVES THE LARGE PLAYERS WILL GET LARGER AND WILL BE ABLE TO TAKE ADVANTAGE OF THE ECONOMIES OF SCALE SHE SAYS THIS WILL MAKE IT MUCH HARDER FOR THE SMALL PLAYERS TO COMPETE HER BUY LIST FEATURES FIVE HMO HEALTH MAINTENANCE ORGANIZATION AND MANAGED CARE COMPANIES OXFORD HEALTH PLANS PACIFICARE UNITED HEALTHCARE US HEALTHCARE AND VALUE HEALTH JOSEPH E MILLSAP WITH MORGAN KEEGAN IN MEMPHIS TENN GRABBED SECOND PLACE IN MEDICALSTOCK PICKING HE KEPT A STRONG BUY ALL YEAR ON COVENTRY CORP WHICH DOUBLED HE ALSO DESERVES PRAISE THOUGH NO CREDIT IN THE ALLSTAR CALCULATIONS FOR A WELLTIMED SELL CALL ON TOKOS MEDICAL WHICH DROPPED MORE THAN 50 AFTERWARD HEALTHCARE REFORM IS GOING TO BE THE MAIN SUBJECT IN EVERYBODY'S LIVING ROOM MR MILLSAP SAYS HE RECENTLY CUT HIS LIST OF BUYS TO THREE STOCKS FROM 12 BECAUSE OF UNCERTAINTIES ABOUT THE IMPACT OF THE REFFORM EFFORT THOSE THREE ARE PHYCOR REHABILITY AND SOFAMOR DANEK GROUP PHYCOR IS ONE OF THE NEW COMPANIES THAT ARE BUYING UP PHYSICIANS' PRACTICES IT GIVES DOCTORS THE BENEFITS OF BIG MANAGEMENT LIQUIDITY AND ACCESS TO LOWCOST GROWTH CAPITAL MR MILLSAP SAYS REHABILITY PROVIDES PHYSICAL REHABILITATION SERVICES ON AN OUTPATIENT BASIS IT HAS RAPID GROWTH PROSPECTS AND IS UNDERVALUED MR MILLSAP SAYS SOFAMOR DANEK CLAIMS 43 OF THE MARKET IN ORTHOPEDIC SPINAL IMPLANTS USED TO TREAT SCOLIOSIS CURVATURE OF THE SPINE IN ADOLESCENTS AND OTHER SPINAL DEFORMITIES THIRDRANKED DANIEL LEMAITRE A BOSTONBASED ANALYST FOR NEW YORK'S COWEN & CO SAYS THERE'S A PRICE WAR IN FRONT OF THE INDUSTRY AS HEALTHCARE BUYERS INCREASINGLY CALL THE TUNE WITH OR WITHOUT WASHINGTON THE HEALTHCARE INDUSTRY IS GOING WHOLESALE HE SAYS HE IS LOOKING FOR COMPANIES THAT HE THINKS WILL BE ISOLATED FROM THE PRICE WARS AND OTHER UPHEAVALS OF HEALTHCARE REFORM BECAUSE THEY HAVE SOME DRAMATIC LIFESAVING PRODUCT TWO COMPANIES THAT HE THINKS FILL THE BILL ARE MEDTRONICS AND VENTRITEX BOTH ARE BEGINNING TO MARKET IMPLANTABLE HEART DEFIBRILLATORS THAT AUTOMATICALLY CORRECT IRREGULAR HEART RHYTHMS IN HEART PATIENTS THIS IS A 250 MILLIONAYEAR MARKET NOW BUT IT HAS THE POTENTIAL TO BE A 1 BILLION MARKET HE SAYS THE DEVICES ARE QUITE EXPENSIVE HE SAYS BUT THE BENEFIT/COST RATIO IS HIGH SINCE THE ALTERNATIVE TO GETTING ONE IS DEATH 9309150094 930915 ALLSTAR ANALYSTS 1993 SURVEY GOLD BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SEVERAL YEARS IN THE DOLDRUMS GOLD BULLION AND GOLD STOCKS HAVE JUMPED AROUND THIS YEAR THE SECTOR'S TOP THREE ANALYSTS THINK INVESTORS SHOULD BE PICKY AT THIS POINT GENERALLY THEY SUGGEST STICKING WITH COMPANIES THAT BOAST LOWCOST PRODUCTION AMPLE EXPLORATION OPPORTUNITIES AND HEALTHY CASH FLOW BUT NONE OF THOSE CHARACTERISTICS WILL MATTER MUCH THEY ARE QUICK TO CONCEDE UNLESS THE PRICE OF GOLD IS STABLE OR RISING HEADING THE ALLSTAR ROSTER FOR GOLDSTOCK PICKS IN 1992 IS MARC D COHEN OF KIDDER PEABODY HE SEES GOLD AVERAGING 400 AN OUNCE NEXT YEAR WITH A SHOT AT 425 ON AVERAGE FOR 1995 IF IMPROVING SUPPLYANDDEMAND FUNDAMENTALS STAY ON COURSE FOR THE CURRENT YEAR MR COHEN PREDICTS GOLD WILL AVERAGE ABOUT 360 IN 1992 MR COHEN SNUBBED ALMOST ALL THE GOLD SHARES HE COVERS BUT IN MAY HE TOOK A SHINE TO AMERICAN BARRICK RESOURCES AND RODE IT TO A HANDSOME GAIN HE STILL LIKES THE TORONTOBASED COMPANY A PURE GOLD PLAY WITH A STRONG BALANCE SHEET BUT THE SHARES HAVE MORE THAN DOUBLED FROM HIS ORIGINAL PURCHASE PRICE AND NOW TRADE AT A RELATIVELY HIGH MULTIPLE OF EARNINGS AND AMERICAN BARRICK HASN'T HAD ANY MAJOR NEW DISCOVERIES FOR A WHILE HE SAYS SO HIS ENTHUSIASM IS WANING A BIT MR COHEN IS KEENER THESE DAYS ON FREEPORT MCMORAN COPPER & GOLD IT HAS EXCELLENT UNIT GROWTH HE SAYS AND WHAT I CONSIDER TO BE THE FINEST EXPLORATION ACREAGE IN THE BUSINESS IN INDONESIA VAHID FATHI OF KEMPER SECURITIES WEIGHED IN AS THE SECOND BEST GOLD STOCK PICKER FOR 1992 DESPITE THE RECENT RETREAT IN GOLD PRICES HE REMAINS A BULL ON BULLION WE'RE LOOKING FOR A 550 AN OUNCE PRICE IN THE FIRST QUARTER OF 1995 HE SAYS MR FATHI USUALLY PREFERS LARGE LOWCOST PRODUCERS WITH POTENTIAL FOR LEAPS IN MINING OUTPUT HIS FAVORITE IS DENVERBASED NEWMONT MINING IT HAS INTERESTING EXPOSURE TO GOLD ASSETS IN PERU AND IN THE FORMER SOVIET UNION HE SAYS ITS MANAGEMENT HAS A PROVEN TRACK RECORD IT HAS AN AGGRESSIVE EXPLORATION PROGRAM WORLDWIDE HE ALSO LIKES PLACER DOME BUT HE URGES CAUTION ON AMERICAN BARRICK BECAUSE OF THE COMPANY'S AGGRESSIVE HEDGING PROGRAM UNDER WHICH IT LOCKS IN SELLING PRICES FAR IN ADVANCE SHOULD GOLD PRICES TURN WEAK BARRICK WOULD COME MORE INTO FAVOR HE SAYS BUT SHOULD PRICES CLIMB STEADILY AS HE EXPECTS THE COMPANY WON'T BE ABLE TO BENEFIT AS MUCH AS OTHER LESSHEDGED FIRMS PLACING THIRD WAS J CLARENCE MORRISON A VETERAN METALS ANALYST WITH PRUDENTIAL SECURITIES LIKE MR COHEN HE AVOIDED MOST GOLD SHARES LAST YEAR BUT WON WITH AMERICAN BARRICK HE RECOMMENDED IT AT A SLIGHTLY HIGHER PRICE THAN MR COHEN DID MR MORRISON SEES GOLD AVERAGING 365 THIS YEAR AND 385 NEXT YEAR A GOOD STRETCH BELOW THE OTHER TWO ALLSTARS' FORECAST HIS SOLE FAVORITE IN THE GROUP REMAINS AMERICAN BARRICK WHICH HE PREDICTS WILL INCREASINGLY WIN A PLACE IN PENSIONFUND PORTFOLIOS HE SAYS THE COMPANY IS SKILLFUL AT PROTECTING ITSELF FROM GOLDMARKET PRICE FLUCTUATIONS AND HAS ADMIRABLY LOW PRODUCTION COSTS AROUND 250 TO 265 AN OUNCE INCLUDING OVERHEAD 9309150093 930915 ALLSTAR ANALYSTS 1993 SURVEY OIL INTERNATIONAL BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL THE BEHEMOTHS OF THE OIL WORLD GIANT INTERNATIONAL OIL COMPANIES HAVEN'T BEEN HOT STOCKS FOR YEARS LAST YEAR FOR EXAMPLE MOBIL AND TEXACO DECLINED SLIGHTLY IN PRICE WHILE EXXON EKED OUT A GAIN OF LESS THAN 1 SURE THE STOCKS PAY GOOD DIVIDENDS BUT THAT'S BEEN ABOUT IT BUT THOMAS LEWIS OF DUFF & PHELPS IN CHICAGO THE SECTOR'S NO 1 STOCK PICKER FOR 1992 THINKS THE SHARES ARE GOOD BUYS NOW HE RECOMMENDS MOBIL ROYAL DUTCH/SHELL GROUP AND BRITISH PETROLEUM AS STRONG BUYS AND EXXON AS A SECONDARY PURCHASE HE LIKED MOST OF THE SAME STOCKS LAST YEAR AND MANAGED A MODEST GAIN IN THEM BY FAVORABLE TIMING OF HIS RECOMMENDATIONS AS MR LEWIS SEES IT THE BIG INTERNATIONALS ARE WELLPOSITIONED TO PROFIT FROM AN INCREASE IN OIL NATURAL GAS AND CHEMICAL PRICES HE EXPECTS THE PRICE OF CRUDE OIL TO GROW 5 ANNUALLY OVER THE NEXT FOUR TO FIVE YEARS AND NATURAL GAS PRICES TO INCREASE 7 A YEAR MR LEWIS SAYS THE FOUR ELEPHANTSIZED COMPANIES ARE RICH IN EXCESS CASH FLOW GIVING THEM FINANCIAL FLEXIBILITY AND MUSCLE MOBIL HAS HEAVY EXPOSURE TO NATURAL GAS AND A PRESENCE IN THE PACIFIC RIM WHERE ECONOMIES ARE GROWING QUICKLY ROYAL DUTCH HE SAYS ISN'T WELL UNDERSTOOD BY MANY US INVESTORS AND SO TRADES AT AN UNDESERVED DISCOUNT TO OTHER MAJOR OIL COMPANIES BP'S PROFITS SHOULD GROW EVEN IF OIL PRICES DON'T RISE MR LEWIS SAYS BECAUSE OF THE HEAVY RESTRUCTURING UNDERTAKEN BY IN THE PAST 18 MONTHS AS FOR EXXON HE LIKES THE COMPANY BUT THINKS THE SHARES ARE FULLY VALUED CLAYTON VAN LEVY WITH HOWARD WEIL LAST YEAR AND NOW WITH JEFFERIES & CO WON THE NO 2 SPOT WITH SLIM GAINS IN ALL FOUR STOCKS HE RECOMMENDED MAXUS ENERGY MURPHY OIL GLOBAL NATURAL RESOURCES AND HADSON ENERGY RESOURCES UNLIKE MR LEWIS HE DISDAINS THE BIG BOYS OF THE INTERNATIONAL OIL WORLD THEY AREN'T THE FASTESTGROWING STOCKS AND I'M INTERESTED IN GROWTH STOCKS HE SAYS IT CAN TAKE DECADES FOR AN EXXON TO DOUBLE MR LEVY PREFERS STOCKS LIKE MURPHY OIL AND UNION TEXAS PETROLEUM MURPHY HAS A STRONG BALANCE SHEET AND A LOT OF CASH HE SAYS HE THINKS IT BARGAINED SHREWDLY IN OBTAINING A PIECE OF THE HIBERNIA OIL FIELD OFF THE EAST COAST OF CANADA AND A PIECE OF A NORTH SEA OIL FIELD UNION TEXAS WHICH SHED MOST OF ITS DOMESTIC OPERATIONS OVER THE PAST 18 MONTHS HAS SOLID CASH FLOW FROM ITS OPERATIONS IN INDONESIA AND THE UNITED KINGDOM PLUS EXPLORATION PROJECTS OFFSHORE ARGENTINA AND ALASKA BENJAMIN RICE JR OIL ANALYST WITH BROWN BROTHERS HARRIMAN WAS NO 3 WITH SMALL GAINS IN MOBIL AND CHEVRON TODAY HE IS HIGH ON AMOCO BECAUSE OF ITS HUGE POSITION IN THE NORTH AMERICAN GAS SECTOR NATURAL GAS HAS FINALLY TURNED THE CORNER HE SAYS HE FIGURES THAT AMOCO HAS THE SECONDSTRONGEST BALANCE SHEET IN THE INDUSTRY NEXT TO ROYAL DUTCH IT'S THE BIGGEST MARKETER OF GASOLINE IN THE US AND OWNS EIGHT BILLION BARRELS OF HEAVY CANADIAN OIL PURCHASED CHEAPLY MR RICE ALSO EXPECTS AMOCO TO INCREASE ITS DIVIDEND IN EARLY 1994 HE IS ALSO POSITIVE ON ROYAL DUTCH AND ATLANTIC RICHFIELD ROYAL DUTCH OWNS 15 YEARS OF OIL RESERVES COMPARED WITH AN INDUSTRY AVERAGE OF 114 YEARS AND HAS THE STRONGEST INDUSTRY BALANCE SHEET ATLANTIC RICHFIELD HOLDS A DOMINANT POSITION IN ALASKA AN AREA MR RICE SAYS IS STILL LARGELY UNEXPLORED 9309150092 930915 ALLSTAR ANALYSTS 1993 SURVEY BIOTECHNOLOGY BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BIOTECH STOCKS TRADE AS MUCH ON PSYCHOLOGY AS ON FUNDAMENTALS LATELY INVESTOR PSYCHOLOGY HAS BEEN SOUR A COUPLE OF DRUGS EXPECTED TO BE BLOCKBUSTERS FIZZLED IN TESTING AND THE SQUEEZE IS ON FOR HEALTHCARE COSTS ALL THIS ADDS TO VOLATILITY IN WHAT WAS ALREADY A NOTORIOUSLY VOLATILE GROUP TINA RIZOPOULOS OF PAINEWEBBER NAVIGATED THE GROUP'S STOCKPICKING TERRAIN BEST IN 1992 AS SHE SCORED HUGE GAINS IN CALGENE AND CELLPRO SHE LOOKS BROADLY AT BIOMEDICAL STOCKS NOT JUST GENESPLICING COMPANIES THESE DAYS SHE LIKES A PAIR OF DEVELOPMENTSTAGE COMPANIES ADVANCED TISSUE SCIENCES AND CELLPRO ADVANCED TISSUE LA JOLLA CALIF IS DEVELOPING A SYSTEM FOR REPLICATING HUMAN TISSUES OF THE SKIN CARTILAGE BONE AND LIVER NEAR TERM MS RIZOPOULOS SEES PROMISE IN ITS SKINREPLACEMENT PRODUCT FOR TREATING BURNS AND SKIN ULCERS SHE DOESN'T EXPECT THE COMPANY TO TURN PROFITABLE UNTIL 1996 OR SO AND CAUTIONS IT'S A LONGTERM BUY FOR THE SPECULATIVE INVESTOR CELLPRO BOTHELL WASH IS PIONEERING A DEVICE TO HARVEST STEM CELLS FROM THE BLOODSTREAM SUCH CELLS WHICH GIVE RISE TO ALL THE RED AND WHITE BLOOD CELLS OF THE BODY MIGHT BE USED TO RESTORE THE IMMUNE SYSTEM AFTER CHEMOTHERAPY AS WELL AS IN DIAGNOSTIC TESTS PROFITS PROBABLY IN 1996 OR 1997 LONG TERM THEY'RE VERY GOOD INVESTMENTS BUT THEY'RE NOT FOR THE FAINTOFHEART MS RIZOPOULOS SAYS OF THE BIOTECH GROUP DAVID MOLOWA OF BEAR STEARNS RANKED SECOND SHOWING A KNACK FOR BOTTOM FISHING HE RECOMMENDED BIOGEN AFTER IT PLUNGED TO 2150 FROM 40 AND SAW IT REBOUND TO 48 BY THE END OF LAST YEAR HE ALSO PROFITED BY SCOOPING UP GENZYME ON A DIP TIMING THAT'S THE ISSUE WITH THESE VERY VOLATILE STOCKS MR MOLOWA SAYS IF I LIKE A COMPANY FUNDAMENTALLY I TRY TO WAIT TILL IT'S AT A LOW PRICE NOT FOR FUNDAMENTAL REASONS BUT FOR PSYCHOLOGICAL ONES OR BECAUSE PEOPLE ARE BASHING THE ENTIRE GROUP RIGHT NOW HIS FAVORITE IS BIOGEN THE CAMBRIDGE MASS COMPANY HAS POSITIVE CASH FLOW LOW DEBT AND TWO PROMISING DRUGS UNDER DEVELOPMENT HIRULOG AN ANTICOAGULANT AND BETA INTERFERON AN IMMUNESYSTEM REGULATOR FOR PATIENTS WITH MULTIPLE SCLEROSIS OR HEPATITIS TEENA LERNER OF LEHMAN BROTHERS RANKED THIRD SHE SCORED A BIG GAIN IN BIOGEN AND PICKED SEVERAL OTHER WINNERS BUT LOSSES IN GENZYME AND CHIRON PULLED DOWN HER AVERAGE SOMEWHAT MS LERNER VIEWS PICKING A WINNING STOCK TODAY AS A MUCH BIGGER CHALLENGE THAN IT USED TO BE IN THE PAST BIOTECH AND HEALTH CARE WERE GROWING INDUSTRIES AND THE WIND WAS AT YOUR BACK I NEED TO SHOW OBJECTIVELY THAT A STOCK IS UNDERVALUED SHE SAYS INVESTORS ARE MORE SKEPTICAL OF BREAKTHROUGHS AFTER THE FAILURE OF HIGHLY TOUTED DRUGS SUCH AS CENTOCOR'S CENTOXIN FOR THE FUTURE SHE SAYS INVESTORS SHOULD EXPECT SOME CONSOLIDATION OF BIOTECH COMPANIES ESPECIALLY SMALLER OR TROUBLED ISSUES MY THREE TOP PICKS TODAY ARE AMGEN GENZYME AND BIOGEN SHE SAYS THEY'RE QUALITY COMPANIES WITH PRUDENT TRACK RECORDS WHOSE STOCKS ARE CURRENTLY SELLING BELOW THEIR FUNDAMENTAL VALUE 9309150091 930915 MARKETING & MEDIA ADVERTISING REEBOK FIRES CHIAT/DAY AND HIRES BURNETT BY KEVIN GOLDMAN IN A SURPRISE MOVE REEBOK INTERNATIONAL FIRED BOTH ITS US AD AGENCY CHIAT/DAY AND ITS EUROPEAN SHOP EURO RSCG AWARDING THE WORLDWIDE 140 MILLION ACCOUNT TO LEO BURNETT THE LOSS IS ESPECIALLY STAGGERING FOR CHIAT/DAY WHICH CREATED THE NEW PLANET REEBOK CAMPAIGN AND HANDLED THE ENTIRE 80 MILLION US REEBOK ACCOUNT IT'S ALSO A MAJOR BLOW TO EURO RSCG THE AGENCY WHICH SNARED THE 60 MILLION EUROPEAN PORTION OF THE BUSINESS ONLY LAST YEAR REEBOK SAYS IT ISN'T DISSATISFIED WITH CHIAT/DAY'S CREATIVE WORK WHICH INCLUDED ADS FEATURING BASKETBALL STAR SHAQUILLE O'NEAL TRUMPETING HIS OWN LINE OF ATHLETIC FOOTWEAR RATHER REEBOK BASED IN STOUGHTON MASS SAYS IT'S MAKING THE ABRUPT CHANGE TO TAKE ADVANTAGE OF BURNETT'S WORLDWIDE MARKETING CAPABILITY UNLIKE ITS SMALLER COMPETITORS BURNETT HAS A NETWORK OF 55 OFFICES IN 40 COUNTRIES AND 20 MULTINATIONAL CLIENTS INCLUDING PROCTER & GAMBLE KELLOGG PHILIP MORRIS AND MCDONALD'S BUT THE MOVE COMES AS THE SALES FOR REEBOK THE NO 2 ATHLETIC FOOTWEAR MANUFACTURER FELL 34 IN THE FIRST SIX MONTHS OF THE YEAR REEBOK HAD SALES OF 683 MILLION COMPARED WITH 7069 MILLION FOR THE SAME PERIOD A YEAR EARLIER ACCORDING TO SPORTING GOODS INTELLIGENCE A NEWSLETTER THAT TRACKS THE HOTLY COMPETITIVE BUSINESS IN COMPARISON ARCHRIVAL NIKE'S SALES ROSE 18 TO 9955 MILLION FROM 8436 MILLION IN THE YEAREARLIER PERIOD NIKE'S JUST DO IT CAMPAIGN DESIGNED BY WIEDEN & KENNEDY IS CONSIDERED A BIG SUCCESS AS IS ITS ENDORSEMENT DEAL WITH MICHAEL JORDAN AND JIMMY CONNORS THE NEWS DELIVERED BY REEBOK CHAIRMAN PAUL FIREMAN TO CHIAT/DAY EXECUTIVES IN NEW YORK YESTERDAY AFTERNOON WILL SURELY MEAN LAYOFFS AT THE BELEAGUERED AGENCY THAT AT ONE TIME SEEMED TO DO NO WRONG IN AN INTERVIEW JAY CHIAT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHIAT/DAY SAID 18 PEOPLE WORKED ON THE ACCOUNT BUT HE WASN'T SURE HOW MANY EMPLOYEES WOULD RECEIVE PINK SLIPS REEBOK MAINTAINS IT'S HAPPY WITH THE PLANET REEBOK CAMPAIGN AND HAS NO PLANS TO CHANGE IT NOW BUT REEBOK IS CLEARLY WORRIED ABOUT THE BRUISING FIGHT FOR MARKET SHARE BOTH IN THE US AND OVERSEAS THIS INDUSTRY IS LEVELING OUT AND WE'RE IN ONE HELL OF A MARKETSHARE BATTLE SAYS DAVID ROPES REEBOK'S VICE PRESIDENT OF MARKETING SERVICES WORLDWIDE REEBOK WHICH HAS WORLDWIDE SALES OF ABOUT 25 BILLION WANTS TO ACHIEVE 100 GROWTH IN THREE YEARS SAYS MR ROPES AND IT DIDN'T FEEL CHIAT/DAY'S MARKETING CAPABILITY WAS UP TO THE TASK WE MADE THIS DECISION BECAUSE WE NEED BETTER GLOBAL RESOURCES HE SAYS WE WANT TO TAP INTO BURNETT'S WORLDWIDE NETWORK TO DRIVE OUR SALES WORLDWIDE MR ROPES SAYS CHIAT/DAY WILL CONTINUE TO WORK ON HIGHPROFILE SPOTS FOR THE NATIONAL FOOTBALL LEAGUE'S SUPER BOWL CHIAT KNOWS FULL WELL HOW FICKLE REEBOK CAN BE THE AGENCY HAD THE ACCOUNT ONCE BEFORE UNTIL REEBOK FIRED IT SHORTLY AFTER ITS DISASTROUS U BE U CAMPAIGN IN 1991 REEBOK THEN SHIFTED THE BUSINESS TO BOSTONBASED AGENCY HILL HOLLIDAY CONNORS COSMOPULOS BEFORE GIVING THAT SHOP THE BOOT AND RETURNING TO CHIAT/DAY FOR CHIAT/DAY THE NEWS COMES AT A TIME WHEN THE AGENCY IS TRYING TO RECOVER FROM OTHER MAJOR LOSSES IN THE PAST YEAR INCLUDING THE AMERICAN EXPRESS CHARGECARD ACCOUNT AND VIACOM'S MTV NETWORKS NOT ALL THE NEWS IS GLOOMY AT CHIAT HOWEVER IT WON THE PRESTIGIOUS INFINITI AUTOMOTIVE ACCOUNT AND IS A FINALIST IN THE MUCHSOUGHTAFTER PERSONAL COMPUTER ACCOUNT FROM INTERNATIONAL BUSINESS MACHINES MR CHIAT SAYS SOME OF THE EMPLOYEES WHO TOILED ON THE REEBOK ACCOUNT IN FACT WILL BE SHIFTED TO THE IBM PITCH MR CHIAT ADMITS THE REEBOK LOSS IS A HARSH BLOW ONE THAT IS MAKING THE FLAMBOYANT EXECUTIVE RETHINK HIS ADVERTISING STRATEGY THE AGENCY'S EFFORTS TO EXPAND GLOBALLY HAVEN'T SUCCEEDED LAST NOVEMBER CHIAT/DAY SOLD AUSTRALIA'S BIGGEST SHOP MOJO MDA GROUP LTD WHICH IT PURCHASED IN 1989 TO RIVAL FOOTE CONE & BELDING WE HAVE TO ASSESS WHAT WE'RE DOING GLOBALLY MR CHIAT SAYS NOW WE'VE BEEN PUTZING AROUND ON THIS FOR TOO LONG ASKED WHETHER HIS AGENCY IS NOW FOR SALE OR PRIME FOR A MERGER MR CHIAT SAYS GIVE ME A BREAK THIS JUST HAPPENED A FEW HOURS AGO THE ONLY THING WE KNOW NOW IS THAT WE NEED NEW BUSINESS EURO RSCG OFFICIALS COULDN'T BE REACHED FOR COMMENT YESTERDAY FOR BURNETT MEANWHILE THE WIN IS A MAJOR COUP THE AGENCY GOT ITS FOOT IN THE DOOR WITH REEBOK LAST YEAR WHEN IT WAS AWARDED THE REEBOK ACCOUNT IN LATIN AMERICA AND THE FAR EAST THE AGENCY'S WORK SO IMPRESSED REEBOK THAT THE COMPANY DECIDED TO AWARD BURNETT THE ENTIRE ACCOUNT AFTER A FEW SECRET MEETINGS WITH BURNETT OFFICIALS THE MOST RECENT HELD LAST THURSDAY RICHARD FIZDALE BURNETT'S CHAIRMAN AND CHIEF CREATIVE OFFICER SAID HIS AGENCY WILL LEVERAGE OFF THE CAMPAIGN CHIAT/DAY STARTED ASKED WHETHER BURNETT WILL CHANGE THE PLANET REEBOK ADS AT ALL MR FIZDALE RESPONDS I THINK WE'D BE FIRED IF I MADE SUCH A SUGGESTION BURNETT AND CHIAT/DAY COULDN'T BE MORE DIFFERENT IN CREATIVE STYLES WHEREAS CHIAT/DAY IS KNOWN FOR HIP AND FUNNY ADS INCLUDING THOSE STARRING THAT BATTERYCHARGED BUNNY WHO JUST KEEPS ON GOING BURNETT'S REPUTATION IS FOR WARM AND FUZZY ADS FEATURING THE PILLSBURY DOUGH BOY AND JOLLY GREEN GIANT IT'S UNUSUAL TO FIRE AGENCIES WHEN THE CLIENT IS SATISFIED WITH THE CREATIVE WORK BUT REEBOK'S MR ROPES SAYS THAT WITH BURNETT'S STRATEGIC CAPABILITY WORLDWIDE I CAN COMMUNICATE IN A SINGLE MEETING THE STRATEGY WE NEED I COULDN'T DO THAT WITH OUR PRESENT AGENCIES FURTHERMORE AT LEAST ONE INDUSTRY OBSERVER BELIEVES REEBOK'S SALES WOES AREN'T TIED TO THE ADVERTISING BUT RATHER TO PROBLEMS AT RETAIL LEVEL WHERE THE AGENCY HAS LOST SHARE IN AT LEAST ONE IMPORTANT CATEGORY BASKETBALL SHOES THE ADVERTISING WHILE LOOKING A LOT LIKE NIKE'S ISN'T BAD SAYS JOHN HORAN PUBLISHER OF SPORTING GOODS INTELLIGENCE GLEN MILLS PA REEBOK'S PROBLEMS AREN'T ADVERTISINGRELATED THEY'RE PRODUCTRELATED LEO BURNETT RESHUFFLED TOP EXECUTIVES INTO A SIXMEMBER GLOBAL MANAGEMENT GROUP WITH AN EYE TOWARD BETTER MANAGING GLOBAL GROWTH A SPOKESWOMAN SAID THE NEW CADRE OF GROUP PRESIDENTS REPORTS TO WILLIAM LYNCH THE CHICAGOBASED AGENCY'S PRESIDENT AND CHIEF EXECUTIVE AND TO MR FIZDALE THE REORGANIZATION FOLLOWS A RARE DEPARTURE FROM THE AGENCY'S CLOSED RANKS IN JULY WHEN TED BELL PRESIDENT AND CHIEF CREATIVE OFFICER OF US OPERATIONS LEFT FOR YOUNG & RUBICAM IN NEW YORK MICHAEL CONRAD 48 YEARS OLD FORMERLY INTERNATIONAL PRESIDENT AND CHIEF CREATIVE OFFICER WAS NAMED GROUP PRESIDENT OVERSEEING THE AGENCY'S CREATIVE COMMITTEE AND THE PHILIP MORRIS ACCOUNT JAMES M JENNESS 47 FORMERLY A CORPORATE VICE CHAIRMAN WAS NAMED GROUP PRESIDENT IN CHARGE OF NORTH AMERICAN OPERATIONS AND THE KELLOGG CEREAL ACCOUNT JAMES G OATES 50 FORMERLY CHAIRMAN OF US OPERATIONS WAS NAMED GROUP PRESIDENT OF BURNETT'S ASIAPACIFIC OPERATIONS AND ACCOUNTS INCLUDING THE JUSTWON REEBOK SNEAKER ACCOUNT OTHER GROUP PRESIDENTS INCLUDE KERRY M RUBIE 53 JOHN SMITH 55 AND ROGER HAUPT 45 WHO REMAINS CHIEF FINANCIAL OFFICER THE AGENCY ALSO NAMED AN EXECUTIVE VICE PRESIDENT ROBERT WELKE 46 TO THE POST OF CHIEF CREATIVE OFFICER OF US OPERATIONS ONE OF MR BELL'S FORMER ROLES SEARS CAMPAIGN SEARS ROEBUCK & CO SAYS IT INTENDS TO SPEND 40 MILLION THIS FALL ON ITS NEW APPAREL AD CAMPAIGN BY YOUNG & RUBICAM AIMED AT BOOSTING SALES OF WOMEN'S APPAREL THE NEW TELEVISION ADS TAGGED COME SEE THE SOFTER SIDE OF SEARS ARE SET TO AIR SUNDAY DURING ABC'S BROADCAST OF THE EMMY AWARDS PROGRAM FINALISTS GENERAL NUTRITION CENTERS INC THE PITTSBURGHBASED RETAILER NARROWED ITS AD AGENCY REVIEW TO TWO NEW YORK SHOPS ALLY & GARGANO AND THE INCUMBENT WINNER COMMUNICATIONS EXPECTED 1994 BILLINGS ARE 30 MILLION SAY GENE BEHAGE THE CHAIN'S VICE PRESIDENT OF MARKETING A DECISION IS EXPECTED BY THE END OF THE MONTH GNC IS A UNIT OF THE BOSTON HOLDING COMPANY THOMAS H LEE & CO WHO'S NEWS ALICJA LESNIAK MANAGING DIRECTOR OF THE LONDON OFFICE OF WPP GROUP'S J WALTER THOMPSON WAS NAMED CHIEF FINANCIAL OFFICER OF ANOTHER WPP GROUP AGENCY OGILVY & MATHER MS LESNIAK 41 SUCCEEDS PETER SCARPERI WHO'S LEAVING THE AGENCY 9309150090 930915 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9309150089 930915 INTERNATIONAL BRIEF BARCLAYS BANK PLC BRITISH BANK ANNOUNCES PLAN TO CUT WORK FORCE BY 500 BARCLAYS BANK PLC PLANS TO CUT ITS WORK FORCE BY 500 PEOPLE IN LONDON AND THE SOUTHEAST OF ENGLAND THE LARGE BRITISH CLEARING BANK ALREADY HAS A VOLUNTARY CUTBACK PLAN IN PLACE AND SAID IT RESORTS TO COMPULSORY LAYOFFS WHEN OTHER AVENUES FAIL TO RESULT IN THE DESIRED NUMBER OF STAFF CUTBACKS SINCE 1990 BARCLAYS HAS CUT 13500 STAFF MEMBERS IN NOVEMBER THE BANK ANTICIPATED THAT JOB LOSSES DURING 19901995 WOULD LIKELY TOTAL 18000 UP FROM AN ESTIMATE OF 15000 THE LATEST JOB CUTS WILL REDUCE THE TOTAL NUMBER OF EMPLOYEES TO 70500 FROM THE CURRENT 71000 AND FROM A PEAK OF ABOUT 84500 AT THE END OF 1990 THE COMPANY HAS SAID IT PLANS TO REDUCE STAFFING TO ABOUT 66000 OVER THE NEXT FEW YEARS 9309150088 930915 FOREIGN EXCHANGE DOLLAR DROPS AGAINST YEN AS PLAYERS SHRUG OFF LATEST US ECONOMIC DATA BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CURRENCY PLAYERS SNUBBED THE DOLLAR TUESDAY SHRUGGING OFF SOME UNEXPECTED DATA ON THE US ECONOMY AND LEAVING IT LOWER AGAINST THE YEN BUT THE DOLLAR HELD STEADY AGAINST THE MARK WHICH ALSO REMAINED WEAK AS PLAYERS CONTINUED TO TAKE PROFITS AFTER A RECENT RUN UP AND THE AILING AUSTRALIAN DOLLAR TOUCHED ITS LOWEST LEVEL SINCE JANUARY 1987 IN THE WAKE OF SELLING BY JAPANESE LIFEINSURANCE COMPANIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16095 MARKS UP A BIT FROM 16085 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10583 YEN DOWN FROM 10632 YEN STERLING WAS TRADING AT 15460 UP SLIGHTLY FROM 15455 FINANCIAL MARKETS WERE CLOSED IN TOKYO WEDNESDAY IN OBSERVANCE OF A PUBLIC HOLIDAY THE DOLLAR BEGAN ITS DECLINE AGAINST THE YEN EARLY IN THE TOKYO DAY HIT BY A COMBINATION OF LARGE SALES BY JAPANESE BANKS HEDGING DOLLARDENOMINATED LOANS AND BY THE FALLOUT FROM JAPANESE BUYING OF YEN FOR AUSTRALIAN DOLLARS CURRENCY ANALYSTS SAID THAT THE JAPANESE BANKS SOLD ABOUT 500 MILLION IN TOKYO TO HEDGE CURRENCY RISKS AS THEIR YENDENOMINATED LOANS TO BRAZIL GET RESTRUCTURED INTO DOLLARDENOMINATED LOANS UNDER THE BRADY PLAN AIMED AT EASING DEVELOPINGCOUNTRY DEBT MEANWHILE TRADERS SAID THAT THE JAPANESE LIFE INSURERS WERE RUMORED TO HAVE SOLD AS MUCH AS ONE BILLION AUSTRALIAN DOLLARS US6494 MILLION AND EXPLAINED THE SALES HURT THE US DOLLAR AS THOSE FUNDS MOVED INTO THE YEN THE DOLLAR THEN FELL AS FAR AS 10550 YEN DURING THE TOKYO DAY BEFORE RUMORS OF BUYING BY THE BANK OF JAPAN GAVE IT A BIT OF A BOOST BUT TRADERS IN NEW YORK EXPRESSED FRUSTRATION WHEN REPORTS SHOWING BETTERTHANEXPECTED US RETAIL SALES AND SURPRISING TRACES OF INFLATION GAVE THE DOLLAR ONLY A TINY BOOST BEFORE PLAYERS STEPPED IN TO CONTINUE TO SELL THE DOLLAR THE COMMERCE DEPARTMENT SAID US RETAIL SALES ROSE 02 IN AUGUST COMPARED WITH FORECASTS OF A 01 DROP FOR THE MONTH THE LABOR DEPARTMENT MEANWHILE SAID THAT THE US CONSUMER PRICE INDEX OR CPI ROSE A SEASONALLY ADJUSTED 03 IN AUGUST THE MARKET HAD THOUGHT THE CPI FIGURE WOULD SHOW ONLY A 01 RISE THERE WAS AN UNDERCURRENT OF DOLLAR SELLERS EVEN THOUGH THE FIGURES WERE BETTER THAN EXPECTED SAID JACK STAPLETON THE CHIEF CORPORATE DEALER AT STANDARD CHARTERED BANK PLC IN NEW YORK WE DIDN'T GET ANY STRONG BUYING INTEREST SIGNS OF HIGHER INFLATION ARE SOMETIMES CONSIDERED BULLISH ON THE BELIEF THAT THEY COULD PROMPT THE FEDERAL RESERVE TO INCREASE US INTEREST RATES AND THUS TEND TO BOOST YIELDS ON US DEPOSITS BARUCH DEUTSCH A SENIOR VICE PRESIDENT AT LEHMAN BROTHERS INC ADDED I THINK IT'S A NEGATIVE MARKET OUT THERE THEY WANT TO SELL THE DOLLAR ON ANY RALLY TRADERS NOTED HOWEVER THAT THE YEN'S GAINS WERE CAPPED BY UNCERTAINTY OVER AN ANNOUNCEMENT EXPECTED THURSDAY FROM THE JAPANESE GOVERNMENT ON THE MEASURES IT WILL TAKE TO STIMULATE THE NATION'S SAGGING ECONOMY JAPAN IS EXPECTED TO UNVEIL A HOST OF MEASURES DESIGNED TO SPUR THE ECONOMY AND BEGIN TO PARE THE COUNTRY'S HUGE TRADE SURPLUS BUT TRADERS SAID THAT THE MARKET IS STILL UNSURE WHAT SPECIFIC MEASURES THE STIMULUS PACKAGE WILL CONTAIN AND SAID THAT FEW PLAYERS SEEM WILLING TO TAKE STRONG POSITIONS AHEAD OF THE ANNOUNCEMENT 9309150087 930915 INTERNATIONAL BRIEF BRITISH TELECOMMUNICATIONS PLC DATATRANSMISSION VENTURE WITH SANTANDER IS PLANNED BRITISH TELECOMMUNICATIONS PLC AND BANCO SANTANDER SA PLAN A JOINT VENTURE AIMED AT CAPTURING MORE THAN 20 OF SPAIN'S RECENTLY LIBERALIZED MARKET FOR DATA TRANSMISSION THE VENTURE WILL CHALLENGE THE HOLD OF STATECONTROLLED TELEFONICA DE ESPANA SA ON SPAIN'S TELECOMMUNICATIONS MARKET PENDING REGULATORY APPROVAL THE TOTAL INVESTMENT IN THE NEW COMPANY IS EXPECTED TO TOTAL 80 BILLION PESETAS 6252 MILLION OVER 10 YEARS UNDER THE ACCORD BT WILL SUBSCRIBE TO A CAPITAL INCREASE BY SANTANDER'S DATATRANSMISSION UNIT MEGARED THE MOVE WILL TRIPLE MEGARED'S CAPITAL TO 31 BILLION PESETAS THE DATA PROJECT IS CONSIDERED A SPRINGBOARD TO OTHER TELECOMMUNICATIONS PROJECTS HOWEVER ANALYSTS SAY BT IS PROBABLY TOO LATE TO WIN ONE OF SPAIN'S TWO OR THREE MOBILETELEPHONE LICENSES WHICH ARE EXPECTED TO BE GRANTED BY THE GOVERNMENT IN OCTOBER 9309150086 930915 CREDIT RATINGS ORION CAPITAL CORP NEW YORK STANDARD & POOR'S CORP RAISED ITS RATING ON ABOUT 110 MILLION OF THIS INSURANCE HOLDING COMPANY'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBMINUS THE RATINGS AGENCY SAID ORION HAD REDUCED ITS FINANCIAL LEVERAGE TO 317 AT THE END OF JUNE 1993 FROM 477 IN 1990 INCREASED THE PROPORTION OF COMMON EQUITY IN ITS CAPITAL BASE AND REDUCED THE OVERALL COST OF CAPITAL U S WEST INC ENGLEWOOD COLO HAD ITS LONGTERM DEBT RATINGS CONFIRMED BY MOODY'S INVESTORS SERVICE INC THE AGENCY ALSO CONFIRMED THE RATINGS ON DEBT OF THE COMPANY'S SUBSIDIARIES ABOUT 46 BILLION IN DEBT IS AFFECTED MOODY'S SAID IT SAID THE DECISION WAS BASED ON ITS EXPECTATION U S WEST'S INVESTMENT IN TIME WARNER INC'S ENTERTAINMENT UNIT TIME WARNER ENTERTAINMENT WILL BE PERMANENTLY FINANCED WITH A SIGNIFICANT EQUITY COMPONENT MOODY'S ALSO SAID IT EXPECTED U S WEST'S EXIT FROM THE FINANCIAL SERVICES BUSINESS WILL BE SUCCESSFUL MOODY'S SAID THIS ACTION COMPLETES A RATINGS REVIEW BEGUN MAY 14 WHEN U S WEST SAID IT WOULD INVEST 25 BILLION IN TIME WARNER ENTERTAINMENT OVER FOUR YEARS UNION CAMP CORP WAYNE NJ STANDARD & POOR'S CORP SAID IT LOWERED RATINGS ON THIS PAPER PRODUCER'S SENIOR DEBT TO SINGLEAMINUS FROM SINGLEA THE COMPANY HAS ABOUT 18 BILLION IN DEBT OUTSTANDING S&P SAID THE DOWNGRADE REFLECTS CONTINUED WEAKERTHANANTICIPATED EARNINGS AND THE EXPECTATION THAT POOR PRICING IN THE FIRM'S CORE MARKETS WILL CONTINUE WELL INTO 1994 DELAYING ANY TURNAROUND IN PERFORMANCE 9309150085 930915 INTERNATIONAL BRIEF KINGFISHER PLC UK RETAILER POSTS 31 RISE IN FIRSTHALF PRETAX PROFIT UK RETAILER KINGFISHER PLC REPORTED A 31 INCREASE IN FIRSTHALF PRETAX PROFIT TO 82 MILLION 1267 MILLION MUCH OF THE GAIN WAS ASCRIBED TO THE NEWLY ACQUIRED FRENCH ELECTRICAL RETAILER DARTY KINGFISHER SAID THAT UK RETAILING OPERATIONAL PROFIT WOULD HAVE BEEN UP ONLY 81 IF THE DARTY CONTRIBUTION HAD BEEN EXCLUDED INCLUDING DARTY THE COMPANY'S OPERATING PROFIT WAS 736 MILLION A 38 RISE FROM A YEAR EARLIER KINGFISHER MERGED WITH FINANCIERE DARTY SA THE MAJORITY OWNER OF DARTY ET FILS SA FRANCE'S LEADING ELECTRICALGOODS RETAILER IN FEBRUARY THE 161 MILLION DARTY CONTRIBUTION INCLUDES THE FRENCH COMPANY'S JUNE AND JULY RESULTS ONLY THE INTEREST CHARGE ON THE DARTY ACQUISITION WAS AROUND 56 MILLION WHICH LEAVES A CONTRIBUTION NEAR 10 MILLION NOTED ONE ANALYST THE INTERIM DIVIDEND WAS INCREASED 48 TO 44 PENCE SEVEN CENTS A SHARE KINGFISHER SAID TOTAL SALES ROSE 18 TO 183 BILLION 283 BILLION 9309150084 930915 INTERNATIONAL BRIEF LAFARGE COPPEE SA BUILDING MATERIALS GROUP POSTS DROP IN FIRSTHALF NET FRENCH BUILDING MATERIALS GROUP LAFARGE COPPEE SA POSTED A SLIGHT DROP IN FIRSTHALF NET INCOME TO 693 MILLION FRANCS 1235 MILLION FROM 695 MILLION FRANCS AND ANNOUNCED THAT IT PLANS A CAPITAL INCREASE FULL DETAILS OF THE CAPITAL INCREASE WILL BE RELEASED MONDAY BUT THE COMPANY SAID IT WANTS TO EXPAND CAPITAL 10 AND RAISE 25 BILLION FRANCS 45 MILLION IT ALSO SAID THE CAPITAL INCREASE WOULD INCLUDE THE ISSUE OF ONE WARRANT WITH EACH NEW SHARE HOLDERS WOULD BE ABLE TO SUBSCRIBE TO ONE NEW SHARE FOR EVERY TWO WARRANTS HELD LAFARGE ADDED THAT OFFICIALS HAVE DECIDED TO AWARD ONE FREE SHARE FOR EVERY 10 HELD AT THE YEAR END 9309150083 930915 HEARD ON THE STREET UNDERWATER OILSERVICES FIRM STOLT COMEX INSPIRES SOME ANALYSTS TO ADVISE DIVE IN NOW BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S A DIFFERENT KIND OF BOTTOMFISHING STOLT COMEX SEAWAY SENDS DIVERS AND ROBOTIC EQUIPMENT TO THE OCEAN FLOOR TO BUILD PIPELINES AND PLATFORMS BASED IN MARSEILLE FRANCE THE NASDAQTRADED COMPANY WAS BORN OF A MARRIAGE OF TWO BITTER COMPETITORS STOLTNIELSEN SEAWAY AND COMEX SERVICES THE TWO ENDED THEIR COMPETITIVE DOGFIGHT BY MERGING INTO ONE ENTITY LAST YEAR AND THEN SOLD THE PUBLIC A 30 STAKE THIS SPRING THE STOCK DOESN'T YET HAVE A WIDE FOLLOWING ON THE STREET BUT A FEW NEW YORK ANALYSTS ARE CALLING IT A MATCH MADE IN HEAVEN STOLT COMEX THEY SAY IS THE WORLD'S LEADING SUBSEA CONTRACTOR FOR THE OIL INDUSTRY AND THE STOCK IS ONE OF THE TOP CHOICES IN THE ENTIRE OILSERVICE SECTOR IT'S THE ONLY PURE PLAY IN SUBSEA SERVICES AND NOW IS ABSOLUTELY THE TIME TO BUY IT SAYS JAMES H STONE OIL SERVICES ANALYST FOR WERTHEIM SCHRODER & CO THE STOCK CLOSED AT 16 3/4 YESTERDAY UNCHANGED AS A SUBSEA CONTRACTOR STOLT COMEX BECOMES INVOLVED IN ALMOST EVERY PHASE OF THE WORK NECESSARY TO EVALUATE UNDERWATER OILPRODUCTION SITES AS WELL AS TO BUILD AND MAINTAIN THE UNDERWATER PORTION OF PRODUCTION EQUIPMENT THE WORK IS DONE BY HUMAN DIVERS OR UNMANNED REMOTECONTROLLED VEHICLES JOBS CAN RANGE FROM WELDING ON THE UNDERWATER PIECE OF THE GIANT PRODUCTION PLATFORMS TO HOOKING UP THE PIPELINES SNAKING ALONG THE SEABED AND AS MORE OIL EXPLORATION AND PRODUCTION EFFORTS MOVE OFFSHORE INTO DEEP WATER AS THEY ARE PROJECTED TO DO SERVICES OFFERED BY STOLT COMEX WILL BE IN INCREASING DEMAND SUBSEA WORK IS EXPECTED TO INCREASE 15 ANNUALLY FOR THE REST OF THE DECADE IT WILL ACCOUNT FOR MORE THAN 25 OF ALL COMPLETIONS OF OFFSHORE WELLS BY 2010 ROYAL DUTCH/SHELL GROUP SAYS IN A REPORT AND STOLT COMEX IS WELLPOSITIONED IT OPERATES IN 24 COUNTRIES IN EUROPE SOUTH AMERICA THE FAR EAST WEST AFRICA AND THE MIDDLE EAST IN ADDITION THE COMPANY HOLDS THE LARGEST POSITION FOR SUBSEA WORK IN THE NORTH SEA WHERE MUCH OF THAT TYPE OF DEVELOPMENT WILL INITIALLY TAKE PLACE A LOT OF THE WORK WILL INVOLVE SMALLER SATELLITE OIL FIELDS WHOSE PROXIMITY TO LARGER FIELDS MAKES DEVELOPMENT WORTHWHILE OF COURSE 70 OF STOLT COMEX'S SHARES ARE STILL IN THE HANDS OF A FAMILYCONTROLLED PARENT COMPANY SHIPPER STOLTNIELSEN BASED IN LUXEMBOURG AND ALTHOUGH STOLT COMEX HAS EXPRESSED INTEREST IN PUTTING MORE OF ITS STOCK OUT INTO THE PUBLIC SECTOR THE FAMILY IS UNLIKELY TO RELINQUISH ITS VOTING CONTROL THE WAY THE COMPANY IS STRUCTURED CURRENTLY ALLOWS STOLTNIELSEN TO RETAIN 82 OF THE VOTE SO IF AN INVESTOR IS INTERESTED IN LIQUIDITY AND THE COMPANY'S TAKEOVER POTENTIAL THOSE FACTORS COULD BE SEEN AS A NEGATIVE BULLS RECOMMEND THE STOCK BE PURCHASED AND HELD IT'S NOT A QUICK INANDOUT STOCK SAYS JAMES CRANDELL OF SALOMON BROTHERS STOLT COMEX HAS BEEN PUBLICLY TRADED SINCE MAY WHEN THREE MILLION SHARES OR A 30 STAKE WERE OFFERED ALMOST A YEAR FOLLOWING THE MERGER THE MERGER WAS ENGINEERED BY JACOB STOLTNIELSEN PATRIARCH OF THE PARENT COMPANY WHOSE ROOTS GO BACK TO THE FISHING INDUSTRY IN NORWAY THE UNION OF THE TWO IS CALLED A STROKE OF GENIUS BY A FEW BULLISH ANALYSTS STOLTNIELSEN WITH OPERATIONS BASED MOSTLY IN THE NORWEGIAN NORTH SEA HAD THE SOPHISTICATED DIVING SUPPORT VESSELS AND UNMANNED REMOTECONTROLLED CRAFT COMEX HAD THE SKILLS IN SUBSEA CONSTRUCTION WORLDWIDE STOLT COMEX DOES HAVE COMPETITORS SUCH AS ROCKWATER A SUBSIDIARY OF HALLIBURTON AND STENA LINE BASED IN SWEDEN HOWEVER ANALYSTS PRAISE STOLT COMEX FOR AN EXTRAORDINARILY WIDE RANGE OF SERVICES AND THE SHARES OF STOLT COMEX ARE HEAVILY DISCOUNTED RELATIVE TO ITS PEERS SAYS MR CRANDELL OF SALOMON SOME WALL STREET FANS OF THE STOCK ESTIMATE THAT INVESTORS WHO BUY INTO THE COMPANY NOW CAN EXPECT A 50 RISE IN THE STOCK IN 18 TO 24 MONTHS THEY BASE THEIR ENTHUSIASM ON EARNINGS WHICH SHOULD JUMP SIGNIFICANTLY MR STONE SAYS STOLT COMEX SHOULD EARN ABOUT 85 CENTS A SHARE THIS YEAR 140 A SHARE IN 1994 AND 250 A SHARE IN 1995 BEFORE THE MERGER THE TWO COMPANIES REPORTED RESULTS THAT WHEN COMBINED EQUALED A LOSS OF 63 CENTS A SHARE FOR 1992 THE LOSS REFLECTED SOME UNPROFITABLE BUSINESS UNDERTAKINGS AND AGGRESSIVE COMPETITION WITHIN THE INDUSTRY AND BETWEEN THE TWO COMPANIES BEFORE THE MERGER A COMPANY REPRESENTATIVE SAYS 1993 PROJECTIONS BY ANALYSTS ARE ATTAINABLE ALTHOUGH HE DECLINED TO COMMENT ON PROJECTIONS FARTHER OUT IT'S TOO EARLY WE'RE JUST BIDDING ON 1994 PROJECTS THE SPOKESMAN SAYS INDEED THE COMPANY WAS JUST AWARDED TWO CONTRACTS TOTALING 26 MILLION FOR WORK IN THE NORTH SEA THERE'S ALSO AN 80 MILLION AGREEMENT THE LARGEST SUBSEA CONTRACT TO DATE TO DO OILSERVICES WORK RELATED TO THE HUGE TROLL OIL FIELD IN THE NORTH SEA SIXMONTHS ENDED MAY 31 1993 SECOND QUARTER MAY 31 1993 9309150082 930915 BCE LTD UNIT WINS NYNEX CORP CONTRACT NEW YORK NORTHERN TELECOM LTD SAID IT RECEIVED A CONTRACT POTENTIALLY WORTH OVER 1 BILLION OVER FIVE YEARS TO PROVIDE DIGITAL SWITCHING EQUIPMENT TO NYNEX CORP NORTHERN TELECOM WHICH HAS REPORTED WEAK RESULTS AND A MAJOR RESTRUCTURING PLAN IN RECENT MONTHS SAID THE CONTRACT WILL ADD TO REVENUE IN 1994 AND 1995 HAVING A CUSTOMER STAND BEHIND YOU IN HARD TIMES IS A SIGNIFICANT SIGN OF CONFIDENCE SAID GERRY BUTTERS PRESIDENT OF NORTHERN TELECOM INC THE US UNIT NORTHERN TELECOM LTD'S PARENT BCE LTD IS BASED IN CANADA NYNEX IS BUYING THE SWITCHING EQUIPMENT AS PART OF A PLAN TO MODERNIZE ITS TELECOMMUNICATIONS NETWORK AND IS NEGOTIATING SIMILAR PURCHASES WITH ANOTHER UNDISCLOSED MANUFACTURER ONE OF NORTHERN TELECOM'S MAIN COMPETITORS IN THE SWITCHING EQUIPMENT MARKET IS AMERICAN TELEPHONE & TELEGRAPH CO NYNEX SAID IT EXPECTS TO REPLACE ITS EXISTING ANALOG SWITCHING SYSTEMS WITH DIGITAL SYSTEMS WITHIN FIVE YEARS DIGITAL SYSTEMS ROUTE VOICE AND DATA TRAFFIC AT HIGH SPEEDS AND ARE EXPECTED TO BE MORE COSTEFFECTIVE NYNEX SAID MORE THAN 15 MILLION CUSTOMER TELEPHONE LINES WILL BE UPGRADED WITH NORTHERN TELECOM'S DIGITAL SYSTEMS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE NORTHERN TELECOM LTD GAINED 25 CENTS TO 27625 9309150081 930915 ALLSTAR ANALYSTS 1993 SURVEY FOOD BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL AFTER MORE THAN A DECADE OF FAT RETURNS INVESTORS IN FOOD STOCKS HAVE BEEN FORCED ON A CRASH DIET AFTER A BOUNTEOUS DECADE DURING THE 1980S THE GROUP'S STOCKMARKET PERFORMANCE HAS BEEN WEAK FOR THE PAST 18 MONTHS THE ALLSTAR ANALYSTS WHO FOLLOW THE INDUSTRY DON'T EXPECT IT TO IMPROVE MUCH SOON CAROLINE S LEVY OF LEHMAN BROTHERS RANKED TOPS IN STOCK PICKING WITHIN THE GROUP IN 1992 WITH GAINS IN SPICE PURVEYOR MCCORMICK & CO CHEWING GUM MAKER WRIGLEY AND EVEN CEREAL MAKER KELLOGG IT WAS DOWN FOR THE YEAR BUT SHE GOT OUT NEAR THE TOP MS LEVY'S OUTLOOK IS SUCCINCT I'M BEARISH LONGER TERM ONE REASON THE BALANCE OF POWER HAS SHIFTED TO RETAILERS ARMED WITH REAMS OF DATA FROM ELECTRONIC SCANNERS RETAILERS ARE GAINING THE UPPER HAND OVER PRODUCERS ORDERING FAR MORE WISELY AND KEEPING INVENTORIES LEAN THAT'S A REAL POTENTIAL NEGATIVE FOR FOOD STOCKS MS LEVY SAYS STILL SHE FINDS SOME NOURISHMENT IN THE GROUP SHE EXPECTS TAKEOVER ACTIVITY IN FOOD STOCKS TO PICK UP AGAIN AS CASHRICH COMPANIES SUCH AS PHILIP MORRIS AND NESTLE TRY TO BUY THE GROWTH THAT THEY CAN NO LONGER COMMAND SIMPLY BY RAISING PRICES MS LEVY'S ONLY TABLETHUMPING BUY IS FOR WRIGLEY WHICH SELLS THE ULTIMATE GLOBAL PRODUCT WRIGLEY IS COKE WITH NO MIDDLEMAN SHE SAYS THEY DON'T NEED A BOTTLER IT'S INCREDIBLY TRANSPORTABLE AND IT'S VERY AFFORDABLE SHE IS PARTICULARLY KEEN ON WRIGLEY'S STRONG BUSINESS IN FASTDEVELOPING ASIAN MARKETS WRIGLEY JUST OPENED A PLANT IN CHINA BASED ON STRONG GROWTH IN ASIA EASTERN EUROPE AND MEXICO WRIGLEY UNIT VOLUME GROWTH IS ABOUT 15 A YEAR ASTOUNDING FOR A FOOD COMPANY SAYS MS LEVY BUT MS LEVY WARNS THAT INVESTORS SHOULD CUT CEREAL COMPANIES OUT OF THEIR DIET THERE IS A PRICE UMBRELLA UNDER WHICH THE STORE BRANDS WILL MAKE INROADS SHE SAYS DAVID A GOLDMAN OF OPPENHEIMER PICKED UP SECOND PLACE WITH GAINS IN CONAGRA AND CPC MR GOLDMAN WHO SEES NO REAL IMPROVEMENT IN THE GROUP THROUGH 1995 CURRENTLY ISN'T RECOMMENDING ANY LARGE US FOOD COMPANY STOCKS LIKE OTHERS HE WORRIES THAT THE FOOD BEHEMOTHS FACE INCREASING PRIVATELABEL COMPETITION WHICH WILL CRIMP PROFIT MARGINS SWISSBASED NESTLE IS THE ONE LARGE FOOD COMPANY HE RECOMMENDS OTHERWISE HE IS TRYING TO GET CLIENTS TO PAY ATTENTION TO SMALLER COMPANIES THAT NORMALLY WOULD FALL BELOW MOST PORTFOLIO MANAGERS' RADAR SCREENS SUCH AS GRIST MILL WHICH MAKES PRIVATELABEL FRUIT SNACKS AND CEREAL AND JOHN B SANFILIPPO & SONS SANFILIPPO HAS ABOUT 50 OF THE PRIVATELABEL NUT MARKET AND MR GOLDMAN PREDICTS IT WILL HAVE 30 OF THE TOTAL NUT MARKET WITHIN FIVE YEARS THIRDRANKED JACK P RUSSO OF AG EDWARDS & SONS MADE THE ALLSTAR ROSTER MAINLY ON HIS RECOMMENDATION OF RICHFOOD HOLDINGS A MIDATLANTIC FOOD WHOLESALER THAT HAS REPORTED EARNINGS PER SHARE GAINS OF 30 OR GREATER IN 11 OF THE PAST 13 QUARTERS RICHFOOD REMAINS HIS FAVORITE TODAY 9309150080 930915 BUSINESS BRIEF ITT CORP INSURANCE UNIT TO SELL BULK OF BUSINESS TO MASS MUTUAL ITT CORP SAID ITS ITT HARTFORD LIFE INSURANCE COS UNIT REACHED AN AGREEMENT TO TRANSFER A MAJORITY OF ITS GROUP MEDICAL AND DENTAL BENEFITS BUSINESSES TO MASSACHUSETTS MUTUAL LIFE INSURANCE CO FINANCIAL TERMS WEREN'T RELEASED ITT HARTFORD LIFE SAID THE TRANSFER WILL ENABLE IT TO TRIM STAFF AND REDUCE COSTS IN A BUSINESS THAT HAS GROWN MORE COMPETITIVE AND EXPENSIVE IN RECENT YEARS MASS MUTUAL SPRINGFIELD MASS SAID THE ITT HARTFORD BUSINESS WOULD ADD 500 GROUP CUSTOMERS AND 820 MILLION IN PREMIUMS AND PREMIUM EQUIVALENTS TO ITS OWN 2200 GROUP CLIENTS AND 19 BILLION IN MEDICAL AND DENTAL PREMIUMS AND PREMIUM EQUIVALENTS MASS MUTUAL SAID IT WOULD PAY ITT HARTFORD FOR EACH ACCOUNT TRANSFER BASED ON A ROYALTY SCHEME THAT WAS NOT DISCLOSED 9309150079 930915 BUSINESS BRIEF DNA PLANT TECHNOLOGY CORP CONCERN IS SELLING CARROTS FROM VENTURE IN SCHOOLS DNA PLANT TECHNOLOGY CORP SAID IT HAS BEGUN SELLING CARROTS FROM ITS FRESHWORLD AGRICULTURAL JOINT VENTURE WITH DUPONT CO IN CHICAGO PUBLIC SCHOOLS DISNEY WORLD AND ACME SUPERMARKETS ON THE EAST COAST THE CINNAMINSON NJ AGRICULTURAL BIOTECHNOLOGY COMPANY SAID THE CHICAGO SCHOOL SYSTEM IS SELLING FRESHWORLD'S VEGISNAX CARROT STICKS ON A TRIAL BASIS THROUGH ITS LUNCH PROGRAM DISNEY WORLD SELLS VEGISNAX CARROT STICKS ON HEALTHFOOD CARTS AND IN SELECTED CAFETERIAS AT THE THEME PARK IN MIDAUGUST FRESHWORLD FARMS WHOLE CARROTS WERE LAUNCHED IN ACME MARKETS WHICH ARE MAINLY IN THE PHILADELPHIA AREA AND IN SOUTHERN NEW JERSEY THE COMPANY SAID IT HAS BEGUN SELLING BITESIZE CARROTS IN THE SOUTHEAST AND SOUTHWEST 9309150078 930915 TREASURY PLANS TO ISSUE ABOUT 224 BILLION IN SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 1708 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 224 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 3948 BILLION INCLUDING A 129DAY CASH MANAGEMENT BILL THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON DEC 23 1993 AND MARCH 24 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G99 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794J62 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9309150077 930915 YIELDS ON CDS SHOWED LITTLE CHANGE IN SURVEY NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 270 FROM 272 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 446 FROM 454 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 302 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLID TO 448 FROM 456 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 277 FROM 275 ON FIVEYEAR JUMBOS THE AVERAGE DROPPED TO 449 FROM 457 ACCORDING TO BANXQUOTE 9309150076 930915 ALLSTAR ANALYSTS 1993 SURVEY DRUGS BY ELYSE TANOUYE AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL MANY BIGNAME DRUG STOCKS REMAIN IN CRITICAL CONDITION AS CORPORATIONS AND GOVERNMENT BODIES TRY TO SLASH HEALTHCARE COSTS SO IT'S NOT SURPRISING THAT FINDING WINNERS IN THE DRUG GROUP HAS BEEN HARD BOTH IN 1992 AND 1993 AN ANALYST WHO COULD SHOW ANY GAIN AT ALL FOR 1992 WAS A CANDIDATE FOR THE ALLSTAR ANALYSTS' ROSTER ROBERT GOLDMAN WHO THIS YEAR MOVED TO SMITH BARNEY SHEARSON FROM DEAN WITTER EARNED HIS SLOT AS THE GROUP'S TOP STOCK PICKER WITH A NICELY TIMED BUY ON ELAN A PHARMACEUTICALS CONCERN IN ATHLONE IRELAND ELAN DEVELOPS TECHNOLOGIES TO IMPROVE OTHER COMPANIES' DRUGS SUCH AS CONTROLLEDRELEASED FORMULATIONS THAT REDUCE A DOSAGE FROM TWICEADAY TO ONCEADAY A RELATIVELY SMALL COMPANY ELAN HAS NOVEL PRODUCTS AND RAPID EARNINGSPERSHARE GROWTH OF ABOUT 50 ANNUALLY MR GOLDMAN SAYS AT HIS NEW FIRM MR GOLDMAN MOSTLY FOLLOWS HOSPITAL SUPPLY COMPANIES AND NO LONGER TRACKS ELAN THE ONLY DRUG FIRM HE RECOMMENDS NOW IS ABBOTT LABORATORIES WHICH HAS INTERESTS IN THE DIAGNOSTIC NUTRITIONAL AND HOSPITAL SUPPLY BUSINESSES A DIVERSIFICATION THAT IS A VIRTUE IN THIS KIND OF UNCERTAIN ENVIRONMENT BUT MR GOLDMAN EXPECTS NEW DRUGS ESPECIALLY ZILEUTON AN ANTIASTHMA TABLET NOW IN CLINICAL TESTING TO BRING ABBOTT HIGHER EARNINGS IN THE FUTURE D LARRY SMITH AT HAMBRECHT & QUIST CAME IN SECOND WITH GAINS IN SUCH STOCKS AS PFIZER AND ALZA HE STILL LIKES PFIZER BECAUSE HE THINKS ITS NEWPRODUCT ARRAY LOOKS STRONG HE ALSO RATES MERCK A BUY NOT FOR ITS TRADITIONAL LINES OF BUSINESS BUT BECAUSE HE LIKES ITS PROPOSED MERGER WITH MAILORDER DRUG COMPANY MEDCO CONTAINMENT SERVICES AND WARNERLAMBERT'S NEW STRATEGY OF SELLING OVERTHECOUNTER VERSIONS OF OTHER COMPANIES' PRESCRIPTION DRUGS WILL TRANSFORM A VERY MEDIOCRE ETHICAL DRUG COMPANY INTO ONE OF THE INDUSTRY'S MOST ATTRACTIVE HE SAYS STILL IN THE NEAR TERM HE FIGURES THE STOCK MAY BE WEAK MR SMITH DISLIKES MARION MERRELL DOW SYNTEX AND UPJOHN BECAUSE THEY ARE LOSING PATENT PROTECTION ON KEY DRUGS AND DON'T EXPECT BRANDNAME DRUG COMPANIES IN GENERAL TO SHOW MUCH EARNINGS GROWTH SOON HE WARNS THE UNFAVORABLE POLITICAL CLIMATE GIVES THE BIG DRUG COMPANIES LITTLE INCENTIVE TO SHOW EARNINGS GROWTH HE BELIEVES SHOWING EARNINGS NOW IS LIKE CASTING PEARLS BEFORE SWINE THIRDRANKED MARTIN BUKOLL OF WILLIAM BLAIR LOOKS FOR NICHE PLAYERS FOREST LABORATORIES WHOSE UNIT SALES ARE GROWING AT 16 TO 17 A YEAR IS HIGH ON HIS BUY LIST THANKS TO SUCH NICHE PRODUCTS AS AEROBID A STEROID AEROSOL INHALER FOR ASTHMA HE ALSO LIKES THE OUTLOOK FOR MONEYSAVING GENERIC FIRMS ESPECIALLY MYLAN LABORATORIES WHICH AS A BONUS SELLS ELDEPRYL A REVOLUTIONARY DRUG FOR PARKINSON'S DISEASE MR BUKOLL ALSO HAS BUYS ON DRUG DELIVERY COMPANIES SUCH AS ELAN AND THERATECH REFORMULATING AN EXISTING DRUG IS FAR CHEAPER THAN BRINGING OUT A NEW ONE HE SAYS PUTTING THESE COMPANIES' SERVICES IN GREAT DEMAND BY THE EMBATTLED BIG DRUG COMPANIES 9309150075 930915 POLITICS & POLICY POLL SHOWS HALF APPROVE OF CLINTON'S PERFORMANCE WASHINGTON THE VIEW OF PRESIDENT CLINTON'S PERFORMANCE HAS RISEN TO ITS HIGHEST POINT SINCE EARLY IN HIS TERM ACCORDING TO A NEW WSJ/NBC NEWS POLL IN THE POLL 50 OF THOSE SURVEYED SAID THEY APPROVE OF THE JOB MR CLINTON IS DOING AS PRESIDENT THAT IS UP FROM 45 IN JULY AND 41 IN JUNE AND IT MARKS THE FIRST TIME IN FOUR SURVEYS SINCE APRIL THAT HALF OF THOSE QUESTIONED IN THE JOURNAL/NBC POLL HAVE SAID THEY APPROVE OF THE PRESIDENT'S PERFORMANCE IN THE NEW SURVEY CONDUCTED FRIDAY THROUGH MONDAY 39 SAID THEY DISAPPROVE OF MR CLINTON'S PERFORMANCE THAT'S DOWN FROM 45 IN JULY 9309150074 930915 INTERNATIONAL BRIEF AXA SA AFFILIATE EQUITABLE COS SEEKS YEARLY PROFIT GROWTH OF 15 EQUITABLE COS THE US LIFE INSURANCE AFFILIATE OF FRANCE'S AXA SA IS TARGETING 15 ANNUAL PROFIT GROWTH BY THE END OF 1995 AN EQUITABLE EXECUTIVE TOLD FRENCH FINANCIAL ANALYSTS GREG WILCOX IN CHARGE OF INVESTOR RELATIONS AT EQUITABLE GAVE AN OPTIMISTIC OUTLOOK FOR THE COMPANY WHICH ALSO IS ACTIVE IN ASSET MANAGEMENT AND INVESTMENT BANKING EQUITABLE SURPRISED ANALYSTS IN JULY WHEN IT ANNOUNCED THAT SECONDQUARTER RESULTS SWUNG TO PROFIT OF 475 MILLION FROM A YEAREARLIER LOSS OF 188 MILLION IN THE FIRST HALF OVERALL EQUITABLE HAD PROFIT OF 79 MILLION COMBINED WITH A YEAREARLIER LOSS OF 225 MILLION MR WILCOX SAID DECLINING EXPENSES AT EQUITABLE COMBINED WITH STRONG GROWTH POTENTIAL IN THE RETIREMENT FUND MARKETS WILL UNDERPIN THE INSURER'S GROWTH HE SAID EQUITABLE HAS REDUCED SHARPLY THE AMOUNT OF PROVISIONS NEEDED TO COVER THE REIMBURSEMENT OF SOCALLED GUARANTEED INVESTMENT CONTRACTS WHICH WERE THE PRIME REASON FOR THE GROUP'S FINANCIAL DIFFICULTIES A FEW YEARS AGO 9309150073 930915 ALLSTAR ANALYSTS 1993 SURVEY TOBACCO BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THESE DAYS TOBACCO ANALYSTS ARE HAVING A LOT OF SHORT CONVERSATIONS WITH PORTFOLIO MANAGERS WHEN YOU TALK ABOUT TOBACCO STOCKS PEOPLE GET SORT OF A GLAZED LOOK IN THEIR EYES SAYS BARRY M ZIEGLER OF AG EDWARDS THE TOPRATED STOCK PICKER IN THE GROUP FOR 1992 YOU COULD TELL THE GREATEST STORY IN THE WORLD AND PEOPLE ARE NOT RECEPTIVE THE PREVAILING PESSIMISM MAY BE WELLFOUNDED THE CIGARETTE PRICE CUTS ANNOUNCED BY PHILIP MORRIS ON APRIL 2 A DAY THAT NOW LIVES IN INFAMY AS MARLBORO FRIDAY SET OFF A PLUNGE IN THE STOCK PRICES AND PROFIT OUTLOOKS OF TOBACCO COMPANIES AND DAVID A GOLDMAN TOBACCO ANALYST AT OPPENHEIMER & CO SAYS THE PRICE GAP BETWEEN CHEAP CIGARETTES AND PREMIUM BRANDS IS STILL TOO WIDE AND MUST BE NARROWED BY FURTHER PRICE CUTS I SEE ANOTHER SHOE YET TO FALL HE SAYS NONETHELESS THE TOP TOBACCO ANALYSTS ARE RECOMMENDING A FEW TOBACCO STOCKS MR ZIEGLER WON HIS SPURS LAST YEAR WITH GAINS IN LEAF TOBACCO PROCESSORS DIBRELL BROTHERS WHICH HE TRADED IN AND OUT OF WITH EXQUISITE TIMING AND UNIVERSAL CORP HE REMAINS BULLISH ABOUT THEIR PROSPECTS ALONG WITH THOSE OF MONKAUSTIN IN A SINGULAR VIEW AMONG THE TOP ANALYSTS MR ZIEGLER ALSO IS RECOMMENDING PHILIP MORRIS BASED ON ITS STRONG CASH FLOW GENEROUS YIELD AND OVERSEAS GROWTH PROSPECTS BUT HE IS ADVISING THAT INVESTORS AVOID RJR NABISCO HOLDINGS S LEIGH FERST OF PRUDENTIAL SECURITIES RANKED SECOND LAST YEAR IN TOBACCO STOCK PICKING WITH GAINS IN UST AND UNIVERSAL CORP SHE SHARES MR ZIEGLER'S FONDNESS FOR UNIVERSAL BUT DISAGREES ON PHILIP MORRIS MS FERST IN FACT WANTS TO BE REMEMBERED NOT SO MUCH FOR HER BUY RECOMMENDATIONS IN 1993 BUT RATHER FOR THE FACT THAT SHE DOWNGRADED PHILIP MORRIS ON MARCH 5 NEARLY A MONTH BEFORE THE APRIL 2 SELLOFF MS FERST HAS HOLD RECOMMENDATIONS ON ALL CIGARETTE STOCKS NOR WOULD SHE BUY THE DOMINANT SNUFF MAKER UST SHE IS CONCERNED THAT CHEAP PRIVATELABEL SNUFF WILL UNDERMINE HUGELY PROFITABLE UST PRIVATE LABEL IS A TIME BOMB FOR UST SHE SAYS MAYBE IT DOESN'T GO OFF FOR A FEW YEARS BUT THE FUSE IS LIT THIRDRANKED MR GOLDMAN OF OPPENHEIMER ALSO MADE SOME MONEY IN DIBRELL AND UST BUT HIS TIMING WASN'T AS ACUTE AS MR ZIEGLER'S AND HE LOST A LITTLE MONEY IN RJR NABISCO AND PHILIP MORRIS TODAY HIS SOLE TOBACCO RECOMMENDATION IS DIBRELL WHICH HE SAYS WILL BENEFIT GREATLY FROM THE GROWING POPULARITY OF AMERICANBLEND TOBACCO OVERSEAS AMERICANBLEND CIGARETTES ARE LOWER IN TAR AND MILDER THAN THE HARSH DARK TOBACCO SMOKED IN MANY OVERSEAS MARKETS AS A RESULT MR GOLDMAN BELIEVES DIBRELL'S EARNINGS CAN GROW AS MUCH AS 30 A YEAR GOING FORWARD OTHERWISE MR GOLDMAN'S GLOOMY VIEW IS THAT MOST MAJOR TOBACCO COMPANIES WILL EARN LESS IN 1994 THAN THEY WILL THIS YEAR 9309150072 930915 BUSINESS BRIEF SUN DISTRIBUTORS LP INDUSTRIAL EQUIPMENT SHARES DROP 14 IN HEAVY TRADING SHARES OF A PARTNERSHIP INVESTING IN INDUSTRIAL EQUIPMENT PLUNGED 14 EVEN THOUGH THE COMPANY SAID IT WAS EXPLORING WAYS TO ENHANCE ITS VALUE THE ANNOUNCEMENT BY MANAGEMENT OF SUN DISTRIBUTORS LP MAJORITYOWNED BY A UNIT OF AMERICAN EXPRESS CO'S LEHMAN BROTHERS UNIT SAID THE RESTRUCTURING COULD INCLUDE SALE OF ASSETS OR A LIQUIDATION HINT OF A LIQUIDATION APPARENTLY TRIGGERED THE DECLINE THE PARTNERSHIP INTERESTS HAVE A MAXIMUM LIQUIDATION VALUE OF 10 EACH ALTHOUGH THEY HAVE BEEN TRADING NEAR 12 RECENTLY BECAUSE OF A HEFTY 110 ANNUAL PAYOUT IN HEAVY NEW YORK STOCK EXCHANGE TRADING CLASS A INTERESTS CLOSED AT 1025 DOWN 1625 MORE THAN 217000 SHARES CHANGED HANDS COMPARED WITH A DAILY AVERAGE OF 13898 PHILADELPHIABASED SUN DISTRIBUTORS SAID ITS LATEST MOVES REFLECT PENDING EXPIRATION OF ITS TAXEXEMPT INDUSTRIAL LIMITED PARTNERSHIP STATUS 9309150071 930915 ALLSTAR ANALYSTS 1993 SURVEY LEISURE BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL CASINO AND GAMBLINGRELATED STOCKS PRODUCED WINNING HANDS FOR THE LEISURE INDUSTRY'S TOPRANKED ANALYSTS ALL CITE A FEW BIG CASINO OPERATORS AS FAVORITES BUT THEY DIFFER SHARPLY ON THE PROSPECTS FOR THE AGGRESSIVE NEW GROUP OF SMALL COMPANIES SPRINGING UP TO SLAKE THE PUBLIC'S THIRST FOR GAMBLING AS GAMBLING SPREADS TO RIVERBOATS INDIAN RESERVATIONS AND INTERNATIONAL VENUES THE GAMING GROUP STILL HAS PLENTY OF GROWTH AHEAD THE ANALYSTS AGREE DENNIS I FORST OF HANCOCK INSTITUTIONAL EQUITY SERVICES TOOK TOP HONORS IN 1992 STOCK PICKING PROMUS UP 150 LAST YEAR HAS BEEN A FAVORITE OF HIS FOR TWO YEARS MR FORST LIKES THE MEMPHIS TENN COMPANY'S STRONG NEVADA AND NEW JERSEY CASINOS SOLID MANAGEMENT AND SUCCESS IN TAPPING EMERGING MARKETS RECENTLY MR FORST ADDED MIRAGE RESORTS TO HIS BUY LIST CITING ITS GREAT CONSUMER FRANCHISE NEW STRIP RESORT IN LAS VEGAS AND QUEST FOR GROWTH OUTSIDE NEVADA HE ALSO LIKES BOOMTOWN A NEW STOCK BUT A COMPANY WITH 30 YEARS' EXPERIENCE IN THE NEVADA CASINO MARKET MR FORST STEERS CLEAR OF SMALLER RIVERBOAT AND INDIANGAMBLING COMPANIES BECAUSE OF THEIR FROTHY PRICE/EARNINGS MULTIPLES AND LOOMING SHAKEOUTS IN SOME LOCAL MARKETS SUCH AS TUNICA AND BILOXI MISS HE ALSO SHUNS COMPANIES WITH WHAT HE CONSIDERS TIRED PROPERTIES SUCH AS SAHARA RESORTS A FEW SUCH AS MGM GRAND HAVE FINE FUNDAMENTALS BUT EXORBITANT PRICES HE SAYS JIM MURREN OF CJ LAWRENCE RANKED SECOND IN 1992 STOCK PICKS BY TAPPING INTO THE STRENGTH OF INDUSTRY LEADERS PROMUS MIRAGE CAESARS WORLD AND CIRCUS CIRCUS BUT UNLIKE MANY COMPETITORS MR MURREN IS A BIG FAN OF MANY OF THE SMALLER NEW COMPANIES HE LOOKS FOR AGILE OPERATORS THAT HAVE SNATCHED UP PROMISING SITES IN EMERGING MARKETS WHILE THE BIGCAP COMPANIES MAY GET THE LION'S SHARE OF GOOD NEW SITES THERE'S STILL ROOM FOR SMALLER FRY TO MAKE MONEY HE SAYS HE LIKES CASINO AMERICA CASINO MAGIC AND GRAND CASINOS ALTHOUGH RIVERBOAT STOCKS HAVE TRADED ERRATICALLY IN RECENT MONTHS BECAUSE OF CONCERNS ABOUT OVERBUILDING HE SAYS TOP OPERATORS SHOULD REBOUND MANY STATES HAVEN'T LEGALIZED CASINOSTYLE GAMBLING YET AND THOSE DECISIONS WILL TAKE TIME MR MURREN SAYS BUT POLITICAL PRESSURES FOR MORE JOBS AND TAX REVENUE BODE WELL FOR LEGAL GAMES THIRDRANKED WILLARD BROWN OF DEAN WITTER REYNOLDS CALLS HIMSELF A RIFLE SHOOTER THREE BIG COMPANIES IN HIS SIGHTS ARE CIRCUS CIRCUS CAESARS WORLD AND INTERNATIONAL GAME TECHNOLOGY CIRCUS CIRCUS HAS SPENT MORE TIME THAN ANY OTHER STOCK ON DEAN WITTER'S OFFICIAL RECOMMENDED LIST MR BROWN NOTES HE CONSIDERS CAESARS THE CHEAPEST STOCK IN THE CASINO GROUP IGT A MANUFACTURER OF GAMBLING EQUIPMENT DOMINATES THE SLOT MACHINE BUSINESS BY LURING SHARP MANAGERS SPENDING HEAVILY ON RESEARCH AND DEVELOPMENT AND CREATING HIGHQUALITY GAMES HE SAYS MR BROWN ALSO LIKES A SMALL COMPANY AUTOTOTE WHICH MAKES TOTALIZATOR SYSTEMS FOR PARIMUTUEL WAGERING AS STATES MOVE TO PRIVATIZE OFFTRACK BETTING OPERATIONS HE SAYS AUTOTOTE SHOULD BE A PRIME BENEFICIARY BUT MR BROWN IS LEERY OF MOST RIVERBOAT OPERATORS ESPECIALLY THOSE WITH COMPETITION FROM OTHER BIG RIVERBOAT SITES OR LANDBASED CASINOS THERE ARE 22 RIVERBOATS OPERATING TODAY AND ALMOST 80 PENDING APPLICATIONS HE SAYS IF ALL THOSE ARE BUILT WE'LL HAVE BANKRUPTCIES LIKE YOU WON'T BELIEVE 9309150070 930915 ALLSTAR ANALYSTS 1993 SURVEY OIL DOMESTIC BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S NO SECRET THAT NATURAL GAS PRICES HAVE RISEN STRONGLY OVER THE PAST YEAR AND TAKEN AN ARRAY OF STOCKS UP WITH THEM THE CHALLENGE TO THE ALLSTAR ANALYSTS IS TO FIND ENERGY STOCKS THAT HAVEN'T GONE ALONG FOR THE RIDE OR HAVE MORE ROOM TO CLIMB BARRY SAHGAL RESEARCH DIRECTOR OF LADENBURG THALMANN IN NEW YORK SNUCK INTO FIRST PLACE IN 1992 FOR STOCK PICKING IN THE DOMESTIC OIL GROUP EVEN THOUGH HE'S A GENERALIST NOT AN OIL ANALYST MR SAHGAL RECOMMENDED THREE ENERGY STOCKS LAST YEAR EASTEX ENERGY OCCIDENTAL PETROLEUM AND GRAND VALLEY ALL THREE ROSE WITH EASTEX DOUBLING TODAY MR SAHGAL IS PARTIAL TO GIANT INDUSTRIES A SMALL SOUTHWEST OIL REFINER AND TRUCK STOP OPERATOR AND HORNBECK OFFSHORE SERVICES A GULF OF MEXICO SUPPLYBOAT OPERATOR GIANT PRODUCES HIGHER PROFIT MARGINS THAN OTHER REFINERS HE SAYS AND THE COMPANY HAS INCREASED ITS PRODUCTION CAPACITY HE PREDICTS DOUBLEDIGIT YEARTOYEAR EARNINGS INCREASES THAT WILL GRAB INVESTORS' ATTENTION MR SAHGAL LIKES DOMESTIC OIL REFINERS HE BELIEVES MORE PLANTS WILL SHUT DOWN UNDER THE BURDEN OF NEW ENVIRONMENTAL REGULATIONS AND HE NOTES THAT GASOLINE DEMAND IS CLIMBING ALBEIT SLOWLY IF CAPACITY IS TRENDING DOWN AND DEMAND IS TRENDING UP AT SOME POINT THE TWO LINES CROSS HE SAYS WE'RE VERY CLOSE TO THAT HIS FAVORITE REFINER IS GIANT BECAUSE ITS OPERATIONS IN ARIZONA AND NEW MEXICO HAVE FEW COMPETITORS MR SAHGAL SELECTS HORNBECK BECAUSE HIGHER NATURAL GAS PRICES HAVE BOOSTED DRILLING IN THE GULF OF MEXICO DAY RATES FOR HORNBECK'S BOATS HAVE DOUBLED IN THE PAST YEAR AND COULD CLIMB FURTHER HE SAYS JANET DZWIERZYNSKI A CHICAGO NATURALGAS ANALYST FOR DUFF & PHELPS RANKED SECOND WITH A BIG GAIN IN ENRON AND A SMALLER GAIN IN COASTAL CORP THE FUNDAMENTALS IN THE GAS INDUSTRY ARE PROBABLY AS GOOD AS WE'VE EVER SEEN THEM SHE SAYS BUT STOCKS OF GAS PIPELINES AND OF COMPANIES THAT EXPLORE FOR GAS HAVE RISEN SO MUCH OFTEN 30 TO 60 THIS YEAR THAT SHE CAN'T RECOMMEND THEM BEING CONSERVATIVE IF I OWNED ONE OF THESE I'D BE THINKING OF TAKING MY GAINS AT THIS POINT SHE SAYS ONE OF THE FEW PIPELINES STOCKS NOT TO SOAR ARKLA IS STILL BURDENED BY A RESTRUCTURING THAT MS DZWIERZYNSKI THINKS COULD TAKE A LOT LONGER TO WORK OUT AS A RESULT SHE DOESN'T SEE ANY IMMEDIATE OPPORTUNITY THERE IN THIRD PLACE WAS GEORGE GASPAR OF ROBERT W BAIRD IN MILWAUKEE LAST YEAR HE WAS A STRONG ADVOCATE OF TIDEWATER WHICH ROSE MORE THAN 50 TODAY HE SAYS SO MANY STOCKS HAVE MADE A VERY SIGNIFICANT MOVE OFF THEIR BOTTOMS OF A YEAR AGO THAT FINDING OPPORTUNITY IS HARD BUT HE STILL HAS A FEW FAVORITES ONE IS PRIDE PETROLEUM SERVICES WHICH DRILLS WORKOVER WELLS THAT REPAIR AND MAINTAIN EXISTING WELLS THOUGH TRADITIONALLY A DOMESTIC COMPANY PRIDE IS STARTING MOVE INTO NEW MARKETS OVERSEAS LIKE ARGENTINA AND VENEZUELA ANOTHER IS OFFSHORE LOGISTICS A HELICOPTER COMPANY THAT FLIES PEOPLE AND SUPPLIES TO DRILLING PLATFORMS IN THE GULF OF MEXICO ITS HELICOPTERS ARE BUSY NOW AND WILL GET BUSIER HE SAYS BECAUSE OF INCREASED PUMPING OF GAS OUT OF EXISTING WELLS IN THE GULF 9309150069 930915 BUSINESS BRIEF FERROFLUIDICS CORP SHAREHOLDER LAWSUIT ALLEGES PAY FOR FAVORABLE COVERAGE FERROFLUIDICS CORP SAID IT AND SOME OF ITS OFFICERS HAVE BEEN NAMED AS DEFENDANTS IN TWO FEDERAL SUITS FILED BY SHAREHOLDERS IN US DISTRICT COURT IN MASSACHUSETTS THE NASHUA NH COMPANY UNDER INVESTIGATION BY FEDERAL REGULATORS FOR ALLEGEDLY VIOLATING SECURITIES LAWS SAID THE SUITS ALLEGE AMONG OTHER THINGS THAT THE COMPANY MADE FALSE AND MISLEADING STATEMENTS BY FAILING TO DISCLOSE IT MADE PAYMENTS TO GET FAVORABLE COVERAGE BY ANALYSTS AND THAT IT OVERSTATED EARNINGS FOR THE FIRST THREE QUARTERS OF FISCAL YEAR ENDED JUNE 30 1993 THE MAKER OF MAGNETIC FLUIDS HAS SAID IT PLANS TO RESTATE ABOUT 2 MILLION IN OPERATING PROFIT AND 11 MILLION IN REVENUE FOR ALL THREE QUARTERS THE COMPANY SAID IT INTENDS TO VIGOROUSLY DEFEND THE LAWSUITS AS WELL AS ANOTHER SHAREHOLDER'S SUIT FILED AGAINST IT IN AUGUST 9309150068 930915 WOULD YOU USE A WOK TO MAKE A BOEUF BOURGUIGNON MAIS NON BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL A HEAVY DOSE OF IMPORTED GARLIC HAS SET OFF AN INTERNATIONAL DISPUTE THE BIG STINK COMES FROM SPAIN AND FRANCE TWO GARLICLOVING NATIONS WHO FEEL THEIR PALATES NOT TO MENTION THEIR FARMERS THREATENED BY A SURGE IN IMPORTS OF CHINESE GARLIC THEY RECENTLY COMPLAINED TO THE EUROPEAN COMMUNITY WHICH AGREED TO BLOCK ALL SUCH IMPORTS FROM CHINA FOR THE REST OF THE YEAR IN THE GARLIC BELT OF SOUTHERN EUROPE SEASONINGS AREN'T TAKEN LIGHTLY IT'S SORT OF NATIONAL PRIDE SAYS PHILIP DEGEUNIN SPOKESMAN FOR THE FRENCH AGRICULTURE MINISTRY IT'S LIKE MUTTON FOR THE BRITISH PIZZA FOR THE ITALIANS HE JUSTIFIES THE OUTLAWING OF CHINESE GARLIC AS A WAY OF PROTECTING THE PUBLIC MR DEGEUNIN SAYS THE FRENCH RELY ON GARLIC FOR THEIR SOUPE AU PISTOU AND AILLOLI AMONG OTHER DISHES AND BESIDES HE SAYS YOU ALSO GET RID OF WITCHES WITH IT IN SPAIN WHICH GROWS 70 OF EUROPE'S GARLIC SOME ADHERE TO THE BELIEF THAT GARLIC ENHANCES VIRILITY ACTUALLY ARGENTINA EXPORTS MORE GARLIC TO EUROPE THAN CHINA BUT THE EC DETERMINED THAT CHINESE SHIPMENTS MORE THAN QUINTUPLED BETWEEN 1988 AND 1992 AND ALREADY HAVE TOPPED LAST YEAR'S FIGURE SO FAR IN 1993 THIS HAS DRAGGED DOWN PRICES AND HURT EUROPEAN PRODUCTION YOU CAN'T FROM ONE DAY TO THE OTHER DOUBLE YOUR IMPORTS SAYS AN EC SPOKESMAN WHO BLAMES 80 OF THE INCREASE ON US COMPANIES DOING BUSINESS IN CHINA A SPOKESWOMAN AT THE CHINESE EMBASSY IN LONDON DECLINED TO COMMENT NOT EVERYONE IN EUROPE LIKES THE SMELL OF THE NEW BARRIERS THE FRENCH ARE BEING AS NATIONALISTIC ABOUT THEIR GARLIC AS THEY ARE WITH THEIR WINES AND CHEESES GROUSES JOHN FOWLER WHO BUYS GARLIC AND OTHER SUPPLIES FOR PERSONAL CATERING CO IN LONDON JANE EDWARDS AN ECONOMIST WITH LEHMAN BROTHERS INTERNATIONAL IN LONDON CALLS THE MOVE YET ANOTHER EXAMPLE THAT THE FRENCH APPROACH TO RECESSION IS THE ERECTION OF FORTRESS EUROPE BUT SHE FIGURES THE GARLIC LOBBY WILL PREVAIL THIS IS SMALL ENOUGH THAT FRANCE CAN GET ITS OWN WAY AND APPEASE ITS FARMERS GARLIC JOINS A LONG LIST OF PRODUCTS FOR WHICH EUROPEANS HAVE SOUGHT PROTECTION POLISH BEEF CORN BYPRODUCTS FROM THE US RASPBERRIES AND STRAWBERRIES FROM HUNGARY APPLES FROM CHILE BUT LET IT NOT BE SAID THAT THE EC BLINDLY PROTECTS ITS VEGETABLES IT DID TURN DOWN A SPANISH REQUEST FOR CUCUMBER BARRIERS 9309150067 930915 ALLSTAR ANALYSTS 1993 SURVEY LIFE INSURANCE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL LIFE INSURANCE STOCKS HAVE ENJOYED A NICE RALLY WITH FALLING INTEREST RATES GETTING MUCH OF THE CREDIT INSURERS TYPICALLY OWN HUGE BOND PORTFOLIOS AND FALLING RATES ENHANCE THE VALUE OF THE BONDS THEY HOLD MY ONE CONCERN IS RISING RATES SAYS FIRST BOSTON ANALYST CHARLES GATES THE NO 1 STOCK PICKER IN THE LIFE INSURANCE GROUP LAST YEAR HE FEARS THAT THE WHITE HOUSE WILL DECIDE THE ECONOMY NEEDS MORE STIMULUS AND THAT EFFORTS TO GET THE ECONOMY GOING AHEAD WILL PUSH RATES IN AN UNPLEASANT DIRECTION MR GATES HAD A BIG GAIN LAST YEAR IN CONSECO HE ALSO MADE MONEY IN AMERICAN BANKERS AMERICAN GENERAL AND A COUPLE OF OTHER STOCKS TODAY AMERICAN GENERAL HEADS HIS LIST OF BUYS THE HOUSTONBASED LIFE INSURER CONTAINS A STRONG CONSUMER FINANCE COMPANY AND A STRONG ANNUITY COMPANY THAT SPECIALIZES IN SELLING TO TEACHERS HE SAYS IT PAYS A BETTERTHANAVERAGE DIVIDEND AND OFFERS A HIGHQUALITY BALANCE SHEET MR GATES ALSO LIKES ANOTHER COMPANY THAT SELLS TO TEACHERS HORACE MANN EDUCATORS IN SPRINGFIELD ILL THE COMPANY WHICH WRITES CAR AND HOMEOWNERS INSURANCE AS WELL AS LIFE INSURANCE HAS A FIRSTRATE SALES FORCE AND COMPETITIVE PRICING HE SAYS NORMAN L ROSENTHAL OF MORGAN STANLEY EARNED THE NUMBERTWO SLOT BY DINT OF A BIG GAIN IN TORCHMARK HE IS A BULL ON THE INDUSTRY WHICH HE SAYS WILL BENEFIT FROM THE AGING OF THE BABY BOOMERS AND FROM THE NEW TAX LAW BY RAISING TAX RATES THE NEW LAW MAKES THE TAX ADVANTAGES OF INVESTMENTORIENTED LIFE INSURANCE PRODUCTS MORE IMPORTANT MR ROSENTHAL LIKES TORCHMARK A BIRMINGHAM ALA INSURER WITH AN ENVIABLE RECORD FOR CONSECUTIVE EARNINGS INCREASES HE'S ALSO FOND OF CHUBB A WARREN NJ INSURER THAT SELLS LIFE POLICIES AS WELL AS PROPERTY AND CASUALTY INSURANCE AND HAS GOOD GROWTH PROSPECTS OVERSEAS IN HIS VIEW AND HE RECOMMENDS BERMUDABASED MUTUAL RISK MANAGEMENT A COMPANY THAT MANAGES SOCALLED CAPTIVE INSURERS CAPTIVES ARE VEHICLES FOR CORPORATIONS TO SELFINSURE MARGARET ALEXANDRE OF SALOMON BROTHERS MORE THAN DOUBLED HER CLIENTS' MONEY LAST YEAR IN EQUITABLE OF IOWA ONE STOCK SHE LIKES NOW IS EQUITABLE COS NO RELATION THE BIG NEW YORK INSURER THAT USED TO BE A MUTUAL COMPANY OWNED BY ITS POLICYHOLDERS EQUITABLE HAS IMPROVED ITS OPERATIONS AND ITS FINANCES SINCE GOING PUBLIC LAST YEAR SHE SAYS NWNL COS AN INSURER IN MINNEAPOLIS HAS BEEN SELLING AT A SUBSTANTIAL DISCOUNT TO OTHER LIFE INSURERS MY SENSE IS IT'S AN UNDISCOVERED VALUE SHE SAYS REINSURANCE GROUP OF AMERICA A ST LOUISBASED COMPANY IS HER FINAL PICK AS ONE OF THE FEW LIFE REINSURERS OWNED BY PUBLIC SHAREHOLDERS THIS COMPANY HAS ALSO GONE UNDISCOVERED UNLIKE PROPERTY AND CASUALTY REINSURANCE LIFE REINSURANCE ISN'T A CYCLICAL BUSINESS MS ALEXANDRE SAYS SO THE COMPANY SHOULD BE ABLE TO SUSTAIN ITS GROWTH 9309150066 930915 INSIDE TRACK SEAGATE INSIDERS PARE HOLDINGS OF FIRM'S STOCK BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE COMPUTER DISKDRIVE INDUSTRY MIRED IN A PRICE WAR INSIDERS AT SEAGATE TECHNOLOGY HAVE BEEN PARING THEIR HOLDINGS OF THE COMPANY'S STOCK SEAGATE IS ONE OF THE INDUSTRY'S STRONGER PERFORMERS SO SOME ANALYSTS VIEW THE INSIDER SELLING AS A SIGN THAT THE INDUSTRY'S TRAVAILS AREN'T OVER DISKDRIVE MAKERS SUPPLY THE DEVICES USED TO STORE DATA IN PERSONAL COMPUTERS THE SELLING AT THE SCOTTS VALLEY CALIF DISKDRIVE MAKER FOLLOWED ITS MIDJULY REPORT OF A 44 DROP IN FISCALFOURTH QUARTER EARNINGS FOLLOWING THAT NEWS WHICH WAS GENERALLY IN LINE WITH ANALYSTS' EXPECTATIONS 30 COMPANY INSIDERS NOTIFIED THE SECURITIES AND EXCHANGE COMMISSION OF THEIR INTENTION TO SELL A COMBINED 10 MILLION OF SEAGATE STOCK AT AN AVERAGE PRICE OF 1938 A SHARE FROM JULY 30 TO AUG 31 SEAGATE CLOSED YESTERDAY AT 17625 A SHARE OFF 1 OR 54 ON THE NASDAQ OVERTHECOUNTER MARKET MUCH OF THE INDICATED SELLING AT SEAGATE IS RELATED TO THE EXERCISE OF OPTIONS A SITUATION DEEMED RELATIVELY ROUTINE AT MANY COMPANIES BUT AT SEAGATE THE NUMBER OF INSIDERS WHO ARE SELLING AND THE AMOUNT OF SALES OVERALL ARE AT HIGHERTHANUSUAL LEVELS FOR THE COMPANY SEAGATE EARNED 48 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JULY 2 AND IS WIDELY EXPECTED TO BE THE ONE MAJOR DISKDRIVE MAKER TO BE PROFITABLE IN THE CURRENT QUARTER BUT EXECUTIVES ACKNOWLEDGE THAT THE INDUSTRY IS DEEP IN THE BUST PHASE OF ITS CHARACTERISTIC BOOMANDBUST CYCLE WITH LITTLE SIGN OF AN END OF THE LONG PRICE WAR THERE ARE SIMPLY TOO MANY DISKDRIVE COMPANIES SAID ALAN SHUGART SEAGATE'S CHIEF EXECUTIVE OFFICER MR SHUGART IN A TELEPHONE INTERVIEW SAID HE SOLD 45000 SHARES OF A 90000SHARE OPTION IN MIDAUGUST TO PAY THE COSTS OF ACQUIRING THE OTHER 45000 SHARES OF THAT OPTION FOLLOWING THAT DISPOSAL AND AN EARLIER OPENMARKET SALE OF 150000 SHARES ON JULY 23 MR SHUGART HOLDS 332778 SEAGATE SHARES DIRECTLY AND 500000 SHARES INDIRECTLY AS WELL AS A NUMBER OF OPTIONS SEC DATA SHOW THE SEAGATE EXECUTIVE INSISTED SEAGATE IS DOING WELL COMPARED WITH ITS HANDFUL OF COMPETITORS WE DO NOT PLAN TO REPORT A LOSS THIS QUARTER HE SAID IF I THOUGHT OUR STOCK WAS GOING SOUTH I WOULD HAVE SOLD OUT HE SAID WITH A BIT OF HYPERBOLE ANALYSTS EXPECT THE COMPANY TO REPORT NET INCOME OF AROUND 40 TO 50 CENTS A SHARE FOR THE QUARTER ENDING SEPT 30 ROBERT SANDIE SENIOR VICE PRESIDENT WORLDWIDE MATERIALS SAID HE SOLD OFF HIS ENTIRE CURRENT HOLDING OF 21409 SHARES IN THE OPEN MARKET IN LATE JULY BECAUSE HE FELT IT PROBABLY WAS A GOOD TIME TO DO A BIT OF LIQUIDATION HE SAID THAT HE RETAINED MORE THAN 100000 OPTIONS THAT ARE CURRENTLY EXERCISABLE AND THAT HE FELT THE COMPANY'S PROSPECTS UNDER MR SHUGART'S DIRECTION WOULD CONTINUE TO IMPROVE WE'RE DISTANCING OURSELVES FROM THE COMPETITION MR SANDIE SAID BUT THE STOCK COULD FACE MORE PRESSURE SIMPLY BECAUSE WALL STREET TENDS TO LUMP TOGETHER THE PLAYERS IN THIS HIGHLY CYCLICAL BUSINESS SOME EXECUTIVES BELIEVE WE WILL BE PROFITABLE CONSISTENTLY SAID JON VAN BRONKHORST SEAGATE'S DIRECTOR OF INVESTOR RELATIONS BUT WE CAN'T CONTROL WHAT WALL STREET DOES TO OUR STOCK ALL DISKDRIVE COMPANIES MOVE IN UNISON AND I WOULDN'T BE SURPRISED IF OUR STOCK GOT HIT SOME IN THE FUTURE HE SAID JOHN ROSSI AN ANALYST WITH ROBERTSON STEPHENS IN SAN FRANCISCO SAYS SEAGATE'S DIVERSE CUSTOMER BASE AND PRODUCT LINE MAKE IT A LITTLE BIT MORE STABLE THAN ITS COMPETITORS BUT HE STILL DOESN'T RATE THE STOCK A BUY IT'S HARD BEING COMFORTABLE OWNING THESE STOCK WHEN MARGINS ARE UNDER PRESSURE HE SAID FOR NOW HE'S MAINTAINING A NEARTERM HOLD RATING ON SEAGATE'S STOCK IF WE HAVE CONTINUED EXCESS CAPACITY IN THE DISKDRIVE BUSINESS IT WILL RESTRAIN SEAGATE'S SHARE PRICE HE SAYS BUT HE MIGHT REVIEW HIS RATING ONCE HE SEES SURE SIGNS OF INVENTORY REDUCTION THROUGHOUT THE INDUSTRY SOME ANALYSTS THINK DEMAND FOR PERSONAL COMPUTERS WHICH REMAINED STRONG DURING THE FIRST HALF MAY SOFTEN THROUGH THE REST OF THE YEAR IF THAT OCCURS THE INDUSTRY WOULD BE STUCK WITH ITS GLUT OF DISK DRIVES AND FEWER COMPUTERS TO PUT THEM IN LAST YEAR ANALYSTS SAY THE DEMAND FOR DISK DRIVES EXCEEDED SUPPLY SO THERE WAS LITTLE PRESSURE TO KEEP PRICES DOWN BUT DISKDRIVE MAKERS SHARPLY ACCELERATED PRODUCTION AND ESSENTIALLY FLOODED THE MARKET CREATING THE OVERSUPPLY THAT IN THE FIRST QUARTER FUELED PRICE CUTS OF AS MUCH AS 20 ON SOME PRODUCTS SEAGATE WAS SPARED SOME OF THE MOST SEVERE PRICE EROSION BECAUSE OF ITS RELATIVELY PROMINENT PRESENCE IN HIGHCAPACITY DISK DRIVES WHERE GROSS MARGINS HAVE BEEN MUCH HEALTHIER ANALYSTS SAY THEY'RE DOING THE BEST OF ANY DISKDRIVE COMPANY IN A REAL BAD ENVIRONMENT SAYS STEVEN OSSAD AN ANALYST WITH COWEN & CO IN SAN FRANCISCO IT'S A VERY SICK INDUSTRY RIGHT NOW HE RATES SEAGATE AN OUTPERFORM 9309150065 930915 BUSINESS BRIEFS LUMEX INC'S CYBEX DIVISION WHICH MAKES FITNESS EQUIPMENT WILL SELL ITS PRODUCTS DIRECTLY TO HOME CONSUMERS FOR THE FIRST TIME INITIALLY IN CHICAGO AND MINNEAPOLIS EVANS & SUTHERLAND COMPUTER CORP RECEIVED A CONTRACT VALUED AT ABOUT 20 MILLION FROM LORAL CORP A NEW YORK DEFENSEELECTRONICS CONCERN TO PROVIDE ELECTRONIC DISPLAY EQUIPMENT FOR FLIGHT SIMULATORS CINCINNATI BELL INC REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE WATS MARKETING THE TELEPHONE MARKETING UNIT OF FIRST DATA CORP WARNERLAMBERT CO ACQUIRED CACHOU LAJAUNIE A MAKER OF BREATHFRESHENING PRODUCTS FROM THE FRENCH FIRM PIERRE FABRE TERMS WEREN'T DISCLOSED GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS UNIT RECEIVED 17 MILLION IN ORDERS TO SUPPLY STEAM TURBINES FOR TWO PROJECTS IN CHINA AND ONE IN SINGAPORE 9309150064 930915 BUSINESS BRIEF PINNACLE WEST CAPITAL CORP UNIT TO BUILD GAS FACILITY IN ARIZONA FOR PACIFICORP A UNIT OF PINNACLE WEST CAPITAL CORP SAID IT WILL BUILD A 100 MILLION NATURAL GAS POWER PLANT IN ARIZONA THE PLANT WILL BE FINANCED AND OWNED BY PACIFICORP A PORTLAND ORE COMPANY THE DEVELOPMENT PACT PART OF A BROADER SET A COSTSAVING AGREEMENTS BETWEEN ARIZONA PUBLIC SERVICE CO A UNIT OF PINNACLE WEST AND PACIFICORP WAS SIGNED IN LATE 1990 THE DEVELOPMENT PORTION OF THE AGREEMENTS REQUIRES PACIFICORP TO PAY ARIZONA PUBLIC SERVICE TO BUILD THE FACILITY WHICH WILL OPERATE ONLY DURING PERIODS OF PEAK ENERGY DEMAND OR EMERGENCIES UNDER A COLLATERAL 30YEAR AGREEMENT ARIZONA PUBLIC SERVICE WILL MAINTAIN AND OPERATE THE PLANT ARIZONA PUBLIC SERVICE SAID IT IS STUDYING TWO RURAL LOCATIONS NEAR PHOENIX AND WILL SELECT ONE OF THEM BY OCTOBER 1994 AS THE CONSTRUCTION SITE ARIZONA PUBLIC SERVICE SAID GROUNDBREAKING IS SCHEDULED FOR SEPTEMBER 1995 AND THAT COMMERCIAL OPERATION WILL BEGIN IN DECEMBER 1996 9309150063 930915 GROUP OF GOP SENATORS TO UNVEIL TODAY THEIR OWN PLAN TO REFORM HEALTH CARE BY HILARY STOUT AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A GROUP OF REPUBLICAN SENATORS INCLUDING MINORITY LEADER ROBERT DOLE WILL UNVEIL A GOP HEALTH PLAN TODAY THAT WOULD BE FINANCED THROUGH MEDICARE AND MEDICAID SAVINGS SIMILAR TO THOSE IN PRESIDENT CLINTON'S PROPOSAL A WEEK BEFORE MR CLINTON IS TO UNVEIL HIS HEALTH PLAN IN A SPEECH TO CONGRESS ABOUT TWO DOZEN MOSTLY MODERATE REPUBLICANS HAVE CALLED A CAPITOL HILL NEWS CONFERENCE TO SUBMIT THEIR ALTERNATIVE A SYSTEM THAT SHUNS MUCH OF THE GOVERNMENT REGULATION IN THE WHITE HOUSE PLAN BUT CONTAINS MANY OTHER ELEMENTS SIMILAR TO THOSE IN MR CLINTON'S PROPOSAL THE GOP PLAN DEVELOPED UNDER THE LEADERSHIP OF JOHN CHAFEE OF RHODE ISLAND INDICATES THERE MAY BE FERTILE GROUND FOR A COMPROMISE ON HEALTH CARE BETWEEN THE CLINTON ADMINISTRATION AND MODERATE REPUBLICANS MOREOVER THE MEDICARE AND MEDICAID SAVINGS CLAIMED BY THE REPUBLICANS MAY HELP TO INSULATE THE WHITE HOUSE FROM CHARGES THAT THEIR PROJECTED SAVINGS FROM THOSE PROGRAMS ARE UNREALISTIC UNLIKE THE CLINTON PLAN IN WHICH ALL EMPLOYERS WOULD HAVE TO PAY FOR HEALTH INSURANCE FOR THEIR WORKERS THE REPUBLICAN PROPOSAL WOULD REQUIRE ALL INDIVIDUALS TO OBTAIN HEALTH COVERAGE MUCH AS STATES REQUIRE CAR OWNERS TO BUY AUTO INSURANCE BOTH PROPOSALS WOULD DEFINE A UNIFORM BENEFITS PACKAGE THAT WOULD BE GUARANTEED TO EVERY CITIZEN AND LEGAL RESIDENT OF THE US TO ASSIST INDIVIDUALS WHO CAN'T AFFORD A HEALTH POLICY THE GOP PLAN WOULD PROVIDE GOVERNMENT VOUCHERS TO PEOPLE WITH INCOMES AS MUCH AS 240 OF THE POVERTY LEVEL A GOP AIDE SAYS THE VOUCHERS ARE ESTIMATED TO COST THE FEDERAL GOVERNMENT 210 BILLION OVER THE FIRST FIVE YEARS TO PAY FOR THEM THE PROPOSAL WOULD PLACE CEILINGS ON THE ANNUAL RATE OF GROWTH IN MEDICARE AND MEDICAID THAT AIDES SAY WOULD WRING 213 BILLION FROM PROJECTED INCREASES IN THE TWO GOVERNMENT HEALTH PROGRAMS BY THE YEAR 2000 THE CLINTON PLAN CLAIMS SAVINGS OF 238 BILLION IN MEDICARE AND MEDICAID BY THE YEAR 2000 ALSO THROUGH SPENDING CAPS ON THE TWO PROGRAMS THAT PROVIDE HEALTH COVERAGE TO ELDERLY DISABLED AND POOR PEOPLE THE REPUBLICAN CEILINGS WOULD LIMIT THE ANNUAL GROWTH IN THE TWO PROGRAMS COMBINED TO 7 BY THE YEAR 2000 THE CLINTON CAPS WOULD LIMIT EACH PROGRAM'S YEARLY GROWTH RATE TO THE INCREASE IN THE CONSUMER PRICE INDEX PLUS THE GROWTH IN THE PROGRAMS' POPULATIONS BOTH PLANS ALSO WOULD SET UP REGIONAL INSURANCE BUYING POOLS IN EACH STATE BANDING BUSINESSES AND CONSUMERS TOGETHER TO INCREASE THEIR BUYING POWER AND SPREADING RISK OVER LARGE NUMBERS OF PEOPLE BUT WHILE THE CLINTON PLAN WOULD REQUIRE ALL BUT THE LARGEST EMPLOYERS TO JOIN ONE OF THE POOLS WHICH THE WHITE HOUSE CALLS HEALTH ALLIANCES THE REPUBLICAN PLAN WOULD MAKE ENROLLMENT VOLUNTARY FOR EVERYONE THE BUYING POOLS DIFFER BETWEEN THE TWO PLANS IN ANOTHER SIGNIFICANT WAY THE CLINTON PLAN WOULD ESTABLISH ONLY ONE ALLIANCE PER REGION WHILE THE REPUBLICAN PLAN WOULD ALLOW COMPETING POOLS WHICH THEY CALL PURCHASING COOPERATIVES TO BE SET UP IN AN AREA THE INSURANCE INDUSTRY HAS LOUDLY PROTESTED THE DEVELOPMENT OF SINGLE MANDATORY PURCHASING POOLS BOTH THE WHITE HOUSE AND REPUBLICAN PLANS ALSO WOULD LIMIT THE FAVORABLE TAX TREATMENT GIVEN TO EMPLOYERPROVIDED HEALTH BENEFITS REPUBLICANS ARE FAR FROM UNITED ON HEALTH CARE EARLIER THIS YEAR A GROUP OF CONSERVATIVE GOP SENATORS LED BY PHIL GRAMM OF TEXAS BROKE AWAY FROM THE CHAFEE TASK FORCE TO DEVELOP THEIR OWN PLAN THE CHAFEE GROUP HAS BEEN TRYING TO LURE SOME OF THEM BACK BUT WITH ONLY MINIMAL SUCCESS SEPARATELY ADMINISTRATION OFFICIALS ARE EXPECTED THIS MORNING TO ANNOUNCE THAT FEDERAL OFFICIALS WON'T USE ANTITRUST LAWS TO DEFEAT CERTAIN HOSPITAL MERGERS THE ANTITRUST ENFORCEMENT GUIDELINES ALSO WILL PROVIDE SAFETY ZONES THAT SHIELD CERTAIN PURCHASING ARRANGEMENTS AMONG HOSPITALS AND PHYSICIAN JOINT VENTURES FROM CHALLENGES BY THE JUSTICE DEPARTMENT OR THE FEDERAL TRADE COMMISSION OFFICIALS SAY THE GUIDELINES WHICH TAKE EFFECT IMMEDIATELY COVER SIX AREAS WHERE HEALTHCARE AND ANTITRUST MATTERS COINCIDE AND FOLLOW CLOSELY THE ANTITRUST ISSUES IDENTIFIED IN THE DRAFT DOCUMENT OUTLINING PRESIDENT CLINTON'S OVERALL HEALTHCARE PACKAGE GOVERNMENT OFFICIALS SAY THAT RATHER THAN CHANGING ENFORCEMENT POLICY THE GUIDELINES PUT IN WRITING AND CLARIFY EXISTING PRACTICE BUT WITHOUT THAT CLARIFICATION INDUSTRY OFFICIALS SAY HOSPITALS WOULD BE STYMIED BY UNCERTAINTY FRED GRAEFE A HOSPITAL LOBBYIST WITH THE BAKER & HOSTETLER LAW FIRM SAID THAT IN THE ABSENCE OF SOME CLEAR GUIDANCE THE HOSPITAL INDUSTRY WOULD NEED INDUSTRIALSTRENGTH PROZAC TO GET THROUGH THE PRESIDENT'S HEALTHCARE PLAN FRED ENTIN GENERAL COUNSEL OF THE AMERICAN HOSPITAL ASSOCIATION WHICH ASKED FOR ANTITRUST GUIDANCE CALLED THE GUIDELINES A GOOD FIRST STEP IT MEANS WE HAVE A DIALOGUE GOING WITH THE AGENCIES THE DRAFT DOCUMENT SAYS THAT HOSPITALS SMALLER THAN A CERTAIN SIZE AS MEASURED FOR EXAMPLE BY NUMBER OF BEDS OR PATIENT CENSUS REQUIRE CERTAINTY THAT THEY WILL NOT BE CHALLENGED BY THE FEDERAL GOVERNMENT IF THEY ATTEMPT TO MERGE SUCH HOSPITALS OFTEN ARE SOLE COMMUNITY PROVIDERS THAT DO NOT COMPETE WITH OTHER HOSPITALS THE DOCUMENT ALSO PERMITS PHYSICIAN GROUPS THAT CONTROL LESS THAN 20 OF THE DOCTOR BUSINESS IN THEIR AREA TO NEGOTIATE PRICES WITH HEALTH PLANS WITHOUT RUNNING AFOUL OF FEDERAL LAW THE GUIDELINES WILL GIVE EXAMPLES OF HOSPITAL JOINT PURCHASING ARRANGEMENTS THAT WOULDN'T BE CHALLENGED BY THE JUSTICE DEPARTMENT OR THE FTC THE TWO AGENCIES WOULD BE DIRECTED TO PROVIDE ADVISORY OPINIONS ON THE JOINT ARRANGEMENTS AND HEALTH ISSUES GENERALLY WITHIN 90 DAYS OF A REQUEST FROM HEALTH INDUSTRY OFFICIALS HILLARY RODHAM CLINTON WHO SPEARHEADED THE ADMINISTRATION'S HEALTHCARE EFFORT WAS TO ANNOUNCE THE POLICIES WITH ATTORNEY GENERAL JANET RENO FTC CHAIRWOMAN JANET STEIGER AND ASSISTANT ATTORNEY GENERAL ANNE BINGAMAN MEANWHILE WHITE HOUSE AIDES CONTINUED AN EFFORT TO SIEZE CONTROL OF THE HEALTHCARE DEBATE AFTER A LEAK OF THE 239PAGE DRAFT OF THE CLINTON PROPOSAL DASHED THEIR HOPES OF UNVEILING THE SWEEPING PLAN IN A PRESIDENTIAL SPEECH SEPT 22 ELABORATING ON THE DRAFT SENIOR ADMINISTRATION OFFICIALS SAID THAT A REPORT CARD CONTAINING SOME 50 MEASURES OF QUALITY WOULD BE DEVELOPED TO HELP PEOPLE CHOOSE THEIR COVERAGE IN THE NEW SYSTEM THE MEASURES DESIGNED TO ASSESS ACCESS TO CARE THE APPROPRIATENESS OF CARE THE OUTCOME OF CARE RECEIVED AND CONSUMER SATISFACTION WOULD BE DEVELOPED UNDER THE NEW NATIONAL HEALTH BOARD ESTABLISHED BY THE PROPOSAL ALTHOUGH CRITICS WILL CHARGE THAT A 50MEASURE DATA DUMP WOULD BE TOO TECHNICAL AND UNWIELDY CLINTON ADVISERS PROMISED AN EDUCATION CAMPAIGN TO MAKE SURE THAT PEOPLE UNDERSTOOD WHAT THEY WERE LOOKING AT RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9309150062 930915 CHRYSLER CORP CANADIAN UNION SET 3YEAR PACT ACCORD GIVES WAGE BOOSTS PLUS GAINS IN PENSIONS FORD UAW STILL TALK BY NEAL TEMPLIN AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL CHRYSLER CORP AND THE CANADIAN AUTO WORKERS UNION SAID THEY AGREED TO A TENTATIVE THREEYEAR LABOR CONTRACT AVERTING A POTENTIALLY COSTLY STRIKE THAT WOULD HAVE STOPPED PRODUCTION OF SOME OF CHRYSLER'S MOST PROFITABLE VEHICLES CHRYSLER'S 10500 EMPLOYEES IN CANADA WON WAGE INCREASES EACH YEAR OF THE PACT PLUS IMPROVEMENTS IN THEIR PENSIONS WE'VE GOT A GREAT AGREEMENT THAT MEETS ALL THE GOALS OF THE UNION SAID BUZZ HARGROVE PRESIDENT OF THE CANADIAN AUTO WORKERS UNION DETAILS OF THE PACT WEREN'T IMMEDIATELY AVAILABLE MEANWHILE CONTRACT TALKS CONTINUED LATE LAST NIGHT BETWEEN FORD MOTOR CO AND THE UNITED AUTO WORKERS UNION IN DEARBORN MICH THE TWO SIDES WERE BELIEVED CLOSE TO AN AGREEMENT THAT WOULD GIVE FORD LOWER STARTING WAGES FOR NEW HIRES BUT NEGOTIATIONS APPEARED TO BOG DOWN AS THE CONTRACT DEADLINE OF 1201 AM THIS MORNING APPROACHED FORD WHICH HAS BEEN GAINING MARKET SHARE WILL BE HIRING THOUSANDS OF NEW WORKERS IN THE NEXT FEW YEARS TO REPLACE UAWREPRESENTED EMPLOYEES EXPECTED TO RETIRE IN THE CONTRACT THAT EXPIRED THIS MORNING NEW HIRES STARTED AT 85 OF FULL PAY AND REACH THE FULL WAGE RATE OF 1750 AN HOUR IN JUST 18 MONTHS BUT UNDER THE NEW CONTRACT FORD HAD HOPED TO GET BOTH A LOWER STARTING WAGE AND LONGER BREAKIN PERIOD UNTIL THEY RECEIVE FULL WAGE FORD WAS THE UAW'S CONTRACT TARGET THIS YEAR AND THE INITIAL CONTRACT TRADITIONALLY SERVES AS THE PATTERN FOR THE REST OF THE INDUSTRY IF FORD SUCCEEDS IN GETTING LOWER STARTING WAGES IT WOULD BE WELCOME NEWS TO CHRYSLER WHICH ALSO EXPECTS TO DO HEAVY HIRING IN COMING YEARS BUT IT WOULD DO LITTLE TO IMPROVE THE COMPETITIVE POSITION OF GENERAL MOTORS CORP WHICH STILL MUST TRIM 60000 TO 70000 HOURLY WORKERS FROM ITS PAYROLL TO BECOME COMPETITIVE AND THUS WON'T BE HIRING ANY NEW WORKERS FOR YEARS INSTEAD GM HAS BEEN TELLING THE UAW THAT IT NEEDS PERMANENTLY LOWER WAGES IN ITS PARTSMAKING OPERATIONS TO BECOME COMPETITIVE WITH OUTSIDE SUPPLIERS WITH LOWER LABOR COSTS GM'S 85000 WORKERS IN ITS PARTSMAKING OPERATIONS RECEIVE AN AVERAGE OF 42 AN HOUR IN PAY AND BENEFITS OR ABOUT TWICE THE AVERAGE FOR EMPLOYEES OF INDEPENDENT PARTS MAKERS 9309150061 930915 ALLSTAR ANALYSTS 1993 SURVEY DEFENSE AND AEROSPACE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL FOR TWO YEARS BAD NEWS FOR AEROSPACE COMPANIES HAS FILLED THE NEWSPAPERS DEFENSE CUTBACKS DRAG ON THE TIMING OF A REBOUND AMONG AIRLINES REMAINS NAGGINGLY UNCERTAIN SO IT DIDN'T TAKE BIG GAINS FOR AN AEROSPACE ANALYST TO MAKE THE ALLSTAR LIST FOR 1992 PERFORMANCE A BREAKEVEN PERFORMANCE WOULD HAVE PUT AN ANALYST IN THE TOP FIVE YET SOME AEROSPACE AND DEFENSE STOCKS HAVE POSTED HANDSOME GAINS BOTH LAST YEAR AND THIS YEAR CONSOLIDATION COSTCUTTING AND DIVERSIFICATION HAVE PAID OFF FOR CERTAIN COMPANIES AND THE INDUSTRY'S TOP ANALYSTS SEE A CHANCE FOR MORE GAINS IN SELECTED STOCKS PHIL FRIEDMAN OF MORGAN STANLEY EARNED THE TOP SPOT FOR STOCK PICKING AMONG THE INDUSTRY'S ALLSTARS LAST YEAR HIS NEUTRAL RATINGS ON MCDONNELL DOUGLAS ROHR PRECISION CASTPARTS AND FOR MOST OF THE YEAR BOEING SAVED CLIENTS MONEY WHEN THOSE STOCKS TANKED AND HE EKED OUT GAINS IN THIOKOL AND BE AEROSPACE TODAY MR FRIEDMAN FORESEES CASH BUBBLING FORTH AT GRUMMAN GENERAL DYNAMICS MCDONNELL DOUGLAS RAYTHEON AND MARTIN MARIETTA BECAUSE OF THE WAY EACH HAS COME TO GRIPS WITH THE TIMES GRUMMAN IS A PLAY THAT MOST OF THE STREET HAS MISSED HE SAYS BECAUSE INVESTORS HAVEN'T SHIFTED THEIR GAZE FROM THE DEMISE OF HIGHPROFILE WEAPONS SUCH AS THE F14 NAVY FIGHTER MEANWHILE GRUMMAN HAS CUT SPENDING PUMPED UP ITS DIVIDEND AND BOUGHT BACK STOCK WHILE ITS JSTARS BATTLEMANAGEMENT AIRCRAFT AND REDIRECTED COMPUTERSYSTEMS UNIT ARE SURGING AT GENERAL DYNAMICS MR FRIEDMAN EXPECTS PAYMENT OF A LAST BIG SPECIAL DIVIDEND BY YEAR END AND ANOTHER STOCK BUYBACK PERHAPS NEXT YEAR MCDONNELL DOUGLAS HAS STRUGGLED WITH ITS TRANSITION BUT NOW APPEARS TO HAVE STABILIZED NICELY HE SAYS HE ALSO LIKES MARTIN MARIETTA AND RAYTHEON FOR THEIR AGGRESSIVE EFFORTS TO DIVERSIFY HE IS COOLER TOWARD LORAL LOCKHEED AND BOEING GIVING THEM HOLDS HOWARD RUBEL WHO EARNED HIS ALLSTAR STRIPES WHILE AT CJ LAWRENCE LAST YEAR SNARED SECOND PLACE BY WISELY AVOIDING WHAT PROVED TO BE THE YEAR'S LOSERS AND TIMING HIS MIDYEAR RECOMMENDATION ON LOCKHEED WELL NOW A GOLDMAN SACHS ANALYST HE FAVORS ESYSTEMS FOR ITS STRONG BALANCE SHEET ITS MILITARYINFORMATION PRESENCE AND ITS EYE TOWARD COMMERCIAL ENDEAVORS MR RUBEL LIKES DIVERSIFIED COMPANIES THAT DISPLAY AGGRESSIVE MANAGEMENT OF ASSETS AND THAT TARGET NICHES HE IS POUNDING THE TABLE FOR ROCKWELL INTERNATIONAL AND ALLIEDSIGNAL IN MILDER TERMS HE ALSO RECOMMENDS GENERAL DYNAMICS AND RAYTHEON HE CONSIDERS LOCKHEED MCDONNELL DOUGLAS AND NORTHROP FAIRLY VALUED HE SEES BOEING AS AN UNDERPERFORMING STOCK FOR NOW ADDING THAT IMPROVEMENT FOR THAT COMPANY IS JUST A QUESTION OF TIMING PETER ASERITIS OF FIRST BOSTON FINISHED A CLOSE THIRD WITH A HUGE GAIN IN GENERAL DYNAMICS AND A NICE PROFIT ON LOCKHEED MR ASERITIS STUNNED SOME OBSERVERS LAST YEAR WHEN HE SUGGESTED THAT A CLINTON VICTORY COULD BE GOOD FOR DEFENSE STOCKS BUT HE FEELS VINDICATED NOW CORPORATE MANAGEMENTS WERE COMPLACENT HE SAYS BUT THEY AWOKE TO THE NEED FOR ACTION WITH THE ELECTION TODAY HE LIKES LOCKHEED MARTIN MARIETTA LORAL AND GENERAL DYNAMICS HIS SECOND TIER INCLUDES MCDONNELL DOUGLAS AND GM HUGHES ELECTRONICS BUT HE'S STAYING AWAY FROM BOEING SOME SMALLER BOEING SUPPLIERS AND DEFENSEELECTRONICS MAINSTAY ESYSTEMS 9309150060 930915 BUSINESS BRIEF MELLON BANK CORP HEARINGS ARE SET FOR REQUEST OF SMITH BARNEY INJUNCTION A FEDERAL JUDGE SET DATES FOR HEARINGS ON MELLON BANK CORP'S REQUEST FOR A PRELIMINARY INJUNCTION TO BAR SMITH BARNEY SHEARSON INC FROM ESTABLISHING NEW MUTUAL FUNDS AND PROVIDING CUSTODIAL AND ADMINISTRATIVE SERVICES THE HEARINGS WILL BE NOV 8 AND 9 IN PITTSBURGH THE JUDGE ALSO AGREED TO THE PITTSBURGHBASED BANK'S REQUEST FOR EXPEDITED DISCOVERY MELLON IS SUING SMITH BARNEY AND ITS PARENT PRIMERICA CORP ACCUSING THEM OF DIVERTING MUTUALFUND BUSINESS FROM BOSTON CO WHICH MELLON ACQUIRED FOR 145 BILLION THIS YEAR THE SUIT CONTENDS SMITH BARNEY SET UP MUTUAL FUNDS THAT ARE CLONES OF FUNDS THAT BOSTON CO ADMINISTERS FOR SHEARSON ACCORDING TO THE SUIT THIS VIOLATES A NONCOMPETE AGREEMENT THAT WAS PART OF PRIMERICA'S 115 BILLION ACQUISITION OF SHEARSON FROM AMERICAN EXPRESS CO ANNOUNCED IN MARCH MELLON SAYS ITS AGREEMENT TO ACQUIRE BOSTON CO FROM SHEARSON SPECIFIED THAT IT WOULD CONTINUE TO ADMINISTER THE SHEARSON FUNDS SMITH BARNEY HAS DESCRIBED THE SUIT AS FACTUALLY INCORRECT AND WITHOUT MERIT 9309150059 930915 ENTREPRENEUR ORDERED OUSTED IN SEC PROBE OF ALLEGED PONZI SCAM A WALL STREET JOURNAL NEWS ROUNDUP THE SECURITIES AND EXCHANGE COMMISSION SAID A FEDERAL JUDGE ORDERED THE PERMANENT OUSTER OF ENTREPRENEUR STEPHEN MURPHY FROM CONTROL OF AMERICAN CAPITAL INVESTMENTS INC WHICH HE PROMOTED AS A REALESTATE INVESTMENT VEHICLE MR MURPHY COLLECTED AT LEAST 145 MILLION FROM INVESTORS IN WHAT THE SEC DESCRIBED AS A PONZILIKE SCHEME IN WHICH NEW INVESTORS' MONEY IS USED TO PAY PURPORTED PROFIT TO EARLIER INVESTORS THE SEC SAID JUDGE CONSUELO MARSHALL OF LOS ANGELES IN A RULING LATE MONDAY PROHIBITED MR MURPHY FROM RAISING MORE MONEY AND APPOINTED A PERMANENT RECEIVER TO TAKE CONTROL OF AMERICAN CAPITAL INVESTMENTS BASED ON AN SEC COMPLAINT EARLY THIS MONTH THE JUDGE TEMPORARILY FROZE THE ASSETS OF MR MURPHY AND HIS COMPANY MR MURPHY SAID THE MAJORITY OF THE SEC'S ALLEGATIONS ARE FALSE WE HAVE BEEN UNJUSTLY ACCUSED HE SAID WE WILL BE VINDICATED MR MURPHY'S LAWYER IRVING EINHORN SAID THROUGH A SPOKESWOMAN THAT HE WOULDN'T COMMENT UNTIL JUDGE MARSHALL SIGNS AN ORDER MR MURPHY SPENT ABOUT 5 MILLION OF INVESTORS' MONEY TO ACQUIRE COMMERCIAL REAL ESTATE ACCORDING TO KAREN MATTESON SENIOR TRIAL COUNSEL IN THE SEC'S LOS ANGELES OFFICE MS MATTESON SAID ANOTHER 3 MILLION WAS SPENT ON SYNDICATION COSTS INCLUDING SALES COMMISSIONS FOR THE INVESTMENT OPPORTUNITIES ANOTHER 15 MILLION WAS SPENT ON PUBLISHING AND ADVERTISING FOR BOOKS WRITTEN BY MR MURPHY MS MATTESON SAID AT LEAST 3 MILLION OF THE INVESTORS' FUNDS COLLECTED BY AMERICAN CAPITAL INVESTMENTS IS UNACCOUNTED FOR 9309150058 930915 LEISURE & ARTS BOOKSHELF LIFE AND LOVE IN COROFIN BY JANET BYRNE AMONG THE VOICES OF IRISH RESIGNATION I HEARD IN CHILDHOOD THE MOST MOROSELY BELIEVABLE WAS MY FATHER'S THE MASS OF MEN LEAD LIVES OF QUIET DESPERATION HE OFTEN SAID GROWING UP IN INDUSTRIAL NORTHEAST NEW JERSEY ADJACENT TO A TOWN THAT SET A RECORD FOR NUMBER OF BARS PER BLOCK HIS WORDS LEFT A DIFFERENT MEANING FROM THE ONE INTENDED BY THOREAU ON THE BANKS OF WALDEN POND DESPERATION PERMANENTLY AFFLICTS THE STATE OF FRANCIS MACNAMARA THE PUBLICANMANAGER OF DILLON'S THE OLDEST OF THE EIGHT PUBS LINING THE COUNTY CLARE VILLAGE OF COROFIN'S SINGLE STREET FRANCIS IS ONE OF THE MEMORABLE CHARACTERS IN ROSEMARY MAHONEY'S WHOREDOM IN KIMMAGE IRISH WOMEN COMING OF AGE DUTTON 416 PAGES 2195 LONELY COURTLY PAINED BY THE PROFANITY THAT POURS FORTH FREER THAN THE STOUT AND LAGER HE FALLS IN LOVE WITH THE AUTHOR IN A RATHER QUIET AND ANXIOUS WAY THERE IS A SHORTAGE OF WOMEN IN COROFIN AND EFFORTS TO ROMANCE MS MAHONEY ARE SOON PUBWIDE IN HER RENDERING THESE PASSES TEND TO FALL SOMEWHERE BETWEEN ARTHURIAN AND ANTEDILUVIAN AN UPPERCRUST BOSTONIAN MS MAHONEY LIVED FOR SEVERAL MONTHS IN 1991 IN A DISUSED 10ROOM 15THCENTURY NORMAN CASTLE ON COROFIN'S OUTSKIRTS INTENDING TO DEPICT THE LIVES OF CONTEMPORARY IRISH WOMEN SHE WOUND UP INSTEAD HAVING MANY BOOZY REVEALING AND OFTEN HIGHLY DIVERTING CONVERSATIONS WITH THE MEN OF COUNTY CLARE MOST ARE DILLON'S REGULARS AMONG THEM FRANCIS'S BROTHER CONOR WHO IS MISSING HIS EYETEETH AND HAS A BURR THICK WITH VESTIGIAL GAELIC AND THEIR COUSIN JOHN PAT LYNCH A SIMPLEMINDED FASTIDIOUSLY DRESSED 75YEAROLD WITH THE HORMONES AND NERVE OF A TEENAGER THOSE WHO ARE NOT FRANCIS'S BLOOD RELATIONS ARE RELATED BY INSISTENT FAMILIARITY EAMON THE BUTCHER LAUGHING AT PRIVATE JOKES ON THE SAME STOOL EACH NIGHT AND MICK PAT CROWN AN ENRAGED POLITE FARMER OBSESSED WITH AN UNPAID DECADEOLD DEBT THIRTYFOUR YEARS OUT OF COROFIN HE SPENT THE TIME AS A FOUNDRY WORKER FOR BRITISH LEYLAND MOTORWORKS HAS NOT SMOOTHED FRANCIS'S SOCIAL CLUNKINESS OR ASSUAGED HIS SHYNESS HIS IDEA OF A DATE IS A SATURDAY EVENING MASS THEN DRINKS AT DALY'S A RELATIVELY ARRIVISTE PUB WITH SHINY GREEN LINOLEUM AND 1950S DANISH MODERN FURNITURE DILLON'S IS STILL HEATED BY A COAL FIRE ROSE HE ASKS UNCOMFORTABLE IN A PAIR OF NEW BOOTS WITH A COMPLICATED SET OF LACES DO YOU FANCY A PUB LIKE THIS THEY HEAD BACK TO DILLON'S TO FINISH OUT THE NIGHT WITH CONOR CHAPTERS AT DILLON'S ALTERNATE ROUGHLY WITH DUBLIN CHAPTERS DEVOTED TO MS MAHONEY'S OSTENSIBLE INTENT TO BUILD A CASE THAT IRISH WOMEN ARE SLOWLY EMERGING FROM A BOG OF REPRESSIVE TRADITION STRUGGLING TO THEIR FEET AND ATTENDING SINEAD O'CONNOR CONCERTS UNLIKE THE PROSE AND SCENES COUNTY CLARE EVOKES THESE ARE MORE LITERAL TRANSCRIPTIONAL ACCOUNTS WOMEN'SRIGHTS MEETINGS LESBIAN PUBCRAWLS OR INTERVIEWS WITH SUCH FAMOUS FIGURES AS THE POET EAVAN BOLAND AND IRISH PRESIDENT MARY ROBINSON WHOSE UPLIFTING IF COMMONPLACE REMARKS RECEIVE AN INORDINATE AMOUNT OF SPACE A TYPICAL INTERVIEWEE IS RUTH RIDDICK A DUBLIN PREGNANCY AND ABORTION COUNSELOR WHO SPEAKS IN PARAGRAPHS MS MAHONEY AN INCURABLE SPOTTER OF UNFORTUNATE DETAIL CANNOT HELP BUT NOTICE THAT SHE ARRIVES FOR THEIR FIRST MEETING WITH A GIANT BLACK SATIN BOW IN HER HAIR AND A STRANGE ASSORTMENT OF JEWELRY THAT INCLUDES LARGE CAMEO EARRINGS A NECKLACE STRUNG WITH PINBALLSIZED PEARLS AND A SPACE AGE WATCH MS RIDDICK PROVIDES THE BOOK'S TITLE AS SHE DESCRIBES AN ENCOUNTER IN THE HIGH COURT GALLERY BETWEEN A MEMBER OF THE SOCIETY FOR THE PROTECTION OF THE UNBORN CHILD AND FEMINISTS AGITATING FOR ABORTION RIGHTS THOSE WOMEN ENCOURAGE WHOREDOM IN KIMMAGE THE WOMAN HISSED ENVISIONING THE MORAL DOWNFALL OF THIS ONCENOTORIOUS WORKINGCLASS DUBLIN DISTRICT SEVERAL BLOCK QUOTES LATER I WAS EAGER TO RETURN TO THE INSPIRED RANTINGS NON SEQUITURS AND PUNISHING ARGUMENTS OF FRANCIS AND COMPANY IN A MAGNIFICENT SCENE THE DRAMATIS PERSONAE OF DILLON'S FRESH FROM A COUSIN'S FUNERAL ACCOMPANY MS MAHONEY HOME IN THE RAIN TO VIEW HER CASTLE WHILE SHE LOOKS ON THEY POLISH OFF HER WHISKEY AND SLOWLY SLUMP IN OUTSIZED CHAIRS OR FALL TO THE FLOOR CONVERSATION DECONSTRUCTS INTO A HEATED CATTY APPRAISAL OF MAGGIE BUTLER SISTER OF THE DEAD COUSIN WHO HAD HAD THE MAN CREMATED AN UNUSUAL PRACTICE IN IRELAND MAGGIE BUTLER IS A SOCIAL SOCIAL CLIMBER ONE OF THEM SCREAMS IRKED AT THE SPECTACLE OF ASHES BEING CARRIED IN A MINIATURE COFFIN JOHN PAT LYNCH CONFESSES HE DOES NOT UNDERSTAND THE TERM SOCIAL CLIMBER AND HIS CONFUSION OCCUPIES MINUTES OF INSCRUTABLE DIALOGUE THIS KIND OF ENTERTAINMENT MIGHT SEEM MEANSPIRITED IN SOMEONE ELSE'S HANDS AND IN FACT THERE IS AN UNDERCURRENT OF LOATHING AND IMPATIENCE EVIDENT IN MS MAHONEY'S TONE AT TIMES AND A CORRESPONDING GENEROSITY WHEN SHE IS BACK IN CIVILIZED DUBLIN HER REAL STRENGTH HOWEVER IS NOT FOR INTERPRETING THE WELLMEANING REASONABLE OFTEN DULL SETSPEECHES OF ACTIVISTS POLITICIANS AND PUBLIC FIGURES BUT FOR THE NUANCES AND COMMONALITIES OF ORDINARY PEOPLE GETTING ON WITH THEIR LIVES MS BYRNE IS WRITING A BIOGRAPHY OF FRIEDA LAWRENCE 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 9309150057 930915 ALLSTAR ANALYSTS 1993 SURVEY BEVERAGES BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE TITANS OF SOFT DRINKS COCACOLA AND PEPSICO LONG HAVE BEEN FAVORITES OF BEVERAGESTOCK ANALYSTS TODAY ANNUAL VOLUME GROWTH IN THE DOMESTIC SOFTDRINK BUSINESS HAS SLOWED TO ABOUT 2 SO ADVOCATES OF THE STOCKS ARE COUNTING ON OVERSEAS GROWTH TO BUOY COKE AND ON RESTAURANTS AND SNACK FOODS TO BOOST PEPSI IN THE BEER INDUSTRY DOMESTIC SALES GROWTH SEEMS TO HAVE STOPPED ALTOGETHER AS A RESULT THE THREE TOP BEVERAGE STOCK PICKERS OF 1992 DON'T EXPECT MUCH FROM ANHEUSERBUSCH WHICH THEY VIEW AS STUCK IN A MATURE INDUSTRY ALLAN KAPLAN OF MERRILL LYNCH EARNED HIS FIRSTPLACE RANK IN 1992 STOCK PICKING BY AVOIDING COCACOLA WHICH WAS CLOSE TO FLAT AND RECOMMENDING PEPSICO WHICH FIZZED UP A PLEASANT 22 OR SO EVEN THOUGH ANHEUSERBUSCH WAS DOWN FOR THE YEAR MR KAPLAN MANAGED A GAIN ON IT BY BUYING ON A DIP TODAY MR KAPLAN IS NEUTRAL ON ALL THE BEVERAGE STOCKS HE COVERS ALTHOUGH SOFTDRINK CONSUMPTION CONTINUES TO GROW OVERSEAS HE THINKS THE STOCK PRICES ADEQUATELY REFLECT THAT FACT COCACOLA FOR EXAMPLE IS NOT A CHEAP STOCK AT MORE THAN 25 TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS HE SAYS PEPSICO HE ADDS HAS EXPERIENCED INTENSE PRICE COMPETITION IN EVERY AREA OF ITS BUSINESS HE CITES HEIGHTENED COMPETITION IN THE PIZZA AND SNACK FOOD BUSINESSES AND SAYS THAT SOFTDRINK PRICING HAS BEEN POOR FOR THE PAST EIGHT YEARS PEPSI HAS GOT GREAT MANAGEMENT BUT WHAT'S SO GOOD ABOUT GREAT MANAGEMENT IF THE BUSINESSES ARE DOING POORLY MR KAPLAN ASKS THEY HAVE STILL DONE BETTER THAN I EXPECTED THEM TO ANHEUSERBUSCH IS A GOOD COMPANY IN A DULL INDUSTRY IN MR KAPLAN'S VIEW ALTHOUGH THE BEER CONCERN HAS BEEN ABLE TO GET VOLUME GAINS SLIGHTLY BETTER THAN THE INDUSTRY AVERAGE THE COMPANY HASN'T BEEN ABLE TO RAISE PRICES MR KAPLAN SAYS LAWRENCE ADELMAN OF DEAN WITTER TOOK SECOND PLACE IN THE GROUP RECOMMENDING BOTH PEPSICO AND COCACOLA ALL YEAR COKE'S SMALL RISE DILUTED THE EFFECT OF PEPSI'S LARGER ONE MR ADELMAN IS MORE OPTIMISTIC NOW THAN MR KAPLAN IS HE LIKES PEPSICO BEST CITING ITS GROWTH PROSPECTS AND ITS REASONABLE AND ATTRACTIVE VALUATION COCACOLA COMES IN SECOND WE'RE SOMEWHAT CONCERNED ABOUT THE PRICE/EARNINGS MULTIPLE BUT WE UNDERSTAND WHY THE MULTIPLE IS HIGH HE SAYS COKE CONSISTENTLY HAS DELIVERED ABOVEAVERAGE EARNINGS GROWTH EVEN DURING GLOBAL ECONOMIC DOWNTURNS MR ADELMAN RETAINS A NEUTRAL RATING ON ANHEUSERBUSCH IT'S A GOOD COMPANY IN AN UNATTRACTIVE INDUSTRY HE SAYS INDUSTRYWIDE PRICE INCREASES HAVE BEEN MINIMAL AND VOLUME GROWTH HAS BEEN FLAT FOR 1993 HE THINKS ANHEUSER EARNINGS WILL BE UP ONLY ABOUT 4 TO 360 A SHARE THIRDRANKED DIANE MUSTAIN OF DUFF & PHELPS ALSO LIKED COKE AND PEPSI LAST YEAR BUT HER RETURN WAS PULLED DOWN A BIT BY A SMALL LOSS IN ANHEUSERBUSCH RECENTLY SHE STOPPED COVERING THE INDUSTRY TO WORK FOR DUFF & PHELPS' MONEYMANAGEMENT SUBSIDIARY BUT IF SHE WERE STILL A BEVERAGE ANALYST MS MUSTAIN SAYS HER PICKS WOULD BE COCACOLA BECAUSE OF ITS STRONG GLOBAL PRESENCE AND PEPSICO BECAUSE IT HAS BEEN ABLE TO GET NICE GROWTH OUT OF SOME OF ITS BUSINESSES ANHEUSERBUSCH SHE SAYS IS A COMPANY THAT YOU WANT TO LIKE BUT IT'S DIFFICULT 9309150056 930915 CHICAGO MERC NYMEX TO DEVELOP A SYSTEM TO CLEAR FUTURES DEALS CHICAGO THE CHICAGO MERCANTILE EXCHANGE AND NEW YORK MERCANTILE EXCHANGE SAID THEY AGREED TO JOINTLY DEVELOP A NEW SYSTEM TO CLEAR FUTURES TRADES THE AGREEMENT CALLS FOR THE TWO EXCHANGES TO SHARE DATA IN ORDER TO CUT THE COST OF PROCESSING FUTURES TRADES A FIRST FOR THE US FUTURES INDUSTRY MANY IN THE INDUSTRY HAVE PREDICTED THAT IT WILL CONSOLIDATE AS EXCHANGES SEEK WAYS TO TRIM OPERATING EXPENSES THE CMENYMEX VENTURE ALSO REPRESENTS AN EFFORT BY US EXCHANGES TO JOIN FORCES TO HALT THE ADVANCES OF OVERSEAS FUTURES MARKETS WHICH ARE RAPIDLY BECOMING FORMIDABLE COMPETITORS THE THREAT IS FROM GLOBAL COMPETITION TO OUR FRANCHISES SAID DANIEL RAPPAPORT NYMEX CHAIRMAN THE CME IS BEST KNOWN FOR ITS FUTURES CONTRACTS BASED ON STOCKS AND SHORTTERM US INTEREST RATES WHILE THE NYMEX TRADES OIL AND GASOLINE FUTURES CONTRCTS THE CHICAGO AND NEW YORK EXCHANGES WILL SPLIT THE 193 MILLION COST OF THE NEW SYSTEM OFFICIALS SAID 9309150055 930915 LEISURE & ARTS THIRTY YEARS OF ARTFORUM BY DEBORAH SOLOMON IF ART MAGAZINES CAN BE SAID TO HAVE THEIR MOMENTS THE '60S BELONG TO ARTFORUM THE MAGAZINE WHICH IS CELEBRATING ITS 30TH BIRTHDAY THIS MONTH WAS ONCE THE HEIGHT OF HIP ITS ARTICLES WERE WIDELY READ AND DISCUSSED AND ITS DENSE DRYASSAND LANGUAGE MADE YOUNG ARTISTS EVERYWHERE SOUND AS IF THEY WERE TRYING OUT FOR A JOB WITH THE CORPS OF ARMY ENGINEERS IN ITS EARLY YEARS ARTFORUM WAS CONSIDERED AS PRESCIENT A RECORD OF CONTEMPORARY ART AS CAHIERS D'ART HAD BEEN IN THE PARIS OF THE '20S ITS ARID TONE WAS AN APT MATCH FOR THE ARID ART OF THE '60S THIS WAS THE DECADE WHEN THE MINIMALISTS AND CONCEPTUALISTS RULED THE ART SCENE AND THE CUBES AND GRIDS PROLIFERATING ON GALLERY WALLS WERE EXPECTED TO HAVE A THEORY TO GO WITH THEM IN CONTRAST TO THE SPLASHANDSMEAR THEATRICS OF THE '50S ART SCENE THE '60S WAS THE ERA OF IVY LEAGUE ART ARTISTS WHO HELD ADVANCED DEGREES AND WHOSE WORK ALL TOO OFTEN SHOWED IT FOUND AN OUTLET FOR THEIR PENTUP ERUDITION IN THE PAGES OF ARTFORUM PHYSICALLY THE MAGAZINE SET ITSELF APART FROM OTHER ART MAGAZINES BY ADOPTING A SQUARE FORMAT THAT SUITED THE OVERSIZED GEOMETRIC ART IT PROMOTED DEVOTEES STILL GET MISTYEYED RECALLING THE 1967 ISSUE THAT BROUGHT TOGETHER CRITIC MICHAEL FRIED'S ART AND OBJECTHOOD AND PIECES BY THE ARTISTS ROBERT MORRIS SOL LEWITT AND ROBERT SMITHSON THEIR ARTICLES FOLLOWED A DISSERTATION APPROACH WHEREBY A WRITER'S INTELLIGENCE WAS PRESUMED TO BE DIRECTLY PROPORTIONATE TO THE NUMBER OF FOOTNOTES APPENDED TO THE END OF THE PIECE AND IMPARTED AN AURA OF UNASSAILABLE AUTHORITY TO THE MOST RECENT ART THE CURRENT ANNIVERSARY ISSUE IS PACKED WITH SELFSATISFIED REMINISCENCES FROM ARTISTS AND WRITERS AND IT GIVES OFF AN AIR OF SENTIMENTALITY SURPRISING FOR A MAGAZINE THAT ONCE PRIDED ITSELF ON ITS VANGUARD COOL PERHAPS THIS UNGUARDEDNESS IS A RETURN TO ARTFORUM'S ROOTS IN SAN FRANCISCO WHERE IT WAS FOUNDED IN 1962 IT GAINED ITS FIRST PROMINENCE UNDER PHILIP LEIDER A LAWSCHOOL DROPOUT WHO WAS RECRUITED FOR THE POST OF EDITOR FROM THE UNLIKELY RANKS OF THE CITY WELFARE DEPARTMENT HE WAS A GREAT EDITOR AND HE LOVED HIS WIFE GUSHES THE HEADLINE ABOVE MICHAEL FRIED'S TRIBUTE TO MR LEIDER CELEBRATING AN ANNIVERSARY OBVIOUSLY POSES SPECIAL PROBLEMS FOR A FAMILY MADE UP OF ODDBALL CHARACTERS FOR ONE THING HOW DO YOU FIND EVERYONE PHILIP LEIDER IS NOW AN ARTWORLD MIA LAST SPOTTED ROAMING ISRAEL MANY OF THE CRITICS WHO WORKED UNDER HIM HAVE SPLINTERED FROM THE MAGAZINE OVER INTELLECTUAL DIFFERENCES NONETHELESS FOR THE CENTRAL PAGES OF THE SEPTEMBER ISSUE THE MAGAZINE HAS MANAGED TO ROUND UP A DOZEN OR SO UNESTRANGED CRITICS WHO'VE BEEN ASKED TO REFLECT ON THE PAST 30 YEARS AND SELECT A FAVORITE WORK OF ART OR TO PUT IT IN ARTFORUM ARTSPEECH A WORK THAT REARRANGED THE LANDMARKS OF THEIR CULTURAL GEOGRAPHIES PETER SCHJELDAHL THE ORACLE OF THE DOWNTOWN ART SCENE GOES FOR A HORSE PAINTING BY SUSAN ROTHENBERG THE OMNIPRESENT ARTHUR DANTO PICKS THE OMNIPRESENT ANDY WARHOL LINDA NOCHLIN A COMMITTED FEMINIST MUSES ON AN UNCHARACTERISTICALLY CLOTHED PHILIP PEARLSTEIN PORTRAIT OF HERSELF CHOICES SUCH AS THESE SEEM BLANDLY CONSERVATIVE REMINDING US THAT WITH THE PASSAGE OF TIME EVEN THE MOST REBELLIOUS VOICES ARE LIKELY TO SPROUT MOLES AND POT BELLIES IN THE MIDST OF ALL THIS SELFCONGRATULATION THE READER CAN'T HELP BUT WONDER WHETHER THERE ISN'T AT LEAST ONE CRITIC WILLING TO HONOR THE MAGAZINE'S OLD SPIRIT OF PRETENTIOUS PROLIXITY BUT THEN WE TURN TO PAGE 163 WHERE ROSALIND KRAUSS RISES NOBLY TO THE TASK A STAR OF THE ACADEMIC ARTHISTORY CIRCUIT MS KRAUSS BEGAN HER CAREER ESPOUSING THE CHASTE FORMALISM OF CLEMENT GREENBERG BUT LATER BECAME ONE OF HIS NOISIEST FOES ACCUSING HIM OF REPRESSING ALL THAT WAS SEXUAL AND ATAVISTIC ABOUT ART FOR THIS ISSUE OF ARTFORUM MS KRAUSS HAS WRITTEN ON THE PHOTOGRAPHER CINDY SHERMAN AND THE BODY OF CRITICAL THEORY SURROUNDING HER WORK WHICH SHE CONSIDERS INTELLECTUALLY INADEQUATE WHY BECAUSE SHE LAMENTS NO ONE LOOKS AT THE INITIAL RELATION OF SIGNIFIER AND SIGNIFIED TO SEE HOW THEY ARE CONSTRUCTED THAT'S THE SORT OF WRITING IN WHICH ARTFORUM USED TO SPECIALIZE AND ITS AGGRESSIVELY THEORETICAL STANCE WAS A HARBINGER OF THE CURRENT SCENE THESE DAYS ART HISTORY STUDENTS INDIFFERENT TO BRUEGHEL OR BOTTICELLI CAN QUOTE VERBATIM FROM CRITICAL MASTERS WALTER BENJAMIN AND JEAN BAUDRILLARD TO BE POSTMODERN IS TO BE IN LOVE WITH THEORY FOR ITS OWN SAKE PERHAPS BECAUSE SO MUCH RECENT ART LACKS VISUAL VIGOR AND THUS NEEDS A VERBAL CRUTCH THE IRONY IS THAT ARTFORUM ITSELF WHICH HELPED POPULARIZE THE MOST THEORYLADEN STYLE OF CRITICISM NOWADAYS FAVORS A PLAINER APPROACH IN 1980 IT WAS TAKEN OVER BY INGRID SISCHY A DOWNTOWN WRITER IN HER TWENTIES WHO IN KEEPING WITH THE TIMES TURNED THE MAGAZINE INTO A HIGHLOW SHOW IT ADOPTED THE LINE THAT THERE WAS NO LINE BETWEEN HIGH ART AND POPULAR ENTERTAINMENT AND INTRODUCED INTO ITS PAGES NEWFANGLED COLUMNS ON ADVERTISING MOVIES TV AND OTHER SUBJECTS OUTSIDE THE REALM OF ART IN BROADENING ITS SCOPE IT LOST ITS URGENCY IT BECAME READABLE BUT SUDDENLY NO ONE WAS READING IT ANYMORE WHO REALLY WANTS TO HEAR ABOUT THE SEMIOTICS OF LIZA MINELLI PERHAPS THE MORAL IS THAT THERE CAN BE NO CUTTING EDGE WHEN YOUR DEFINITION OF ART HAS NO BOUNDARIES TO PUT IT ANOTHER WAY EVERY TIME I PICK UP THE LATEST ISSUE OF ARTFORUM I'M REMINDED OF AN OLD YIDDISH SAYING THAT ADMONISHES IT'S GOOD TO BE OPENMINDED BUT IF YOU'RE TOO OPENMINDED YOUR BRAINS FALL OUT 9309150054 930915 WHO'S NEWS ELI LILLY'S OUSTED CEO RESIGNS AS A DIRECTOR INDIANAPOLIS VAUGHN D BRYSON FIRED THIS SUMMER AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ELI LILLY & CO RESIGNED AS A DIRECTOR AND SEVERED HIS REMAINING TIES WITH THE COMPANY MR BRYSON 55 YEARS OLD WAS OUSTED BY THE BOARD IN LATE JUNE BUT HAD TECHNICALLY REMAINED A LILLY EMPLOYEE UNTIL HIS RESIGNATION FORMALLY TOOK EFFECT THE GIANT PHARMACEUTICAL COMPANY CONFIRMED YESTERDAY THAT HE HAD ACCEPTED A SEVERANCE PACKAGE TERMS OF WHICH WEREN'T DISCLOSED AND STEPPED DOWN AS A DIRECTOR REDUCING BOARD MEMBERSHIP TO 13 RANDALL L TOBIAS FORMER VICE CHAIRMAN OF AMERICAN TELEPHONE & TELEGRAPH CO WAS NAMED CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT AT THE TIME OF MR BRYSON'S DEPARTURE 9309150053 930915 BUSINESS BRIEF APPLIED MATERIALS INC FINAL AGREEMENT IS SIGNED FOR VENTURE WITH KOMATSU APPLIED MATERIALS INC SANTA CLARA CALIF SAID IT SIGNED THE FINAL AGREEMENT TO FORM A JOINT VENTURE WITH JAPAN'S KOMATSU LTD TO DEVELOP MANUFACTURE AND MARKET FABRICATION EQUIPMENT USED TO PRODUCE FLATPANEL DISPLAYS EACH COMPANY WILL OWN 50 OF THE VENTURE COMPANY WITH KOMATSU MAKING AN EQUITY INVESTMENT OF ABOUT 35 MILLION IN AN EXISTING APPLIED MATERIALS SUBSIDIARY APPLIED DISPLAY TECHNOLOGY INC APPLIED HAS MADE AN EQUITY INVESTMENT OF 5 MILLION IN THE JOINT VENTURE COMPANY WHICH WILL BE RENAMED APPLIED KOMATSU TECHNOLOGY INC FLATPANEL DISPLAYS ARE INCREASINGLY USED TO DISPLAY DATA AND IMAGES IN A WIDE RANGE OF COMPUTERS AND ELECTRONIC EQUIPMENT CREATING A GROWING MARKET FOR THE FACTORY EQUIPMENT USED TO MAKE THE DISPLAYS 9309150052 930915 FORM + FUNCTION BY JOHN PIERSON THE TORTOISE AND THE HARE ARE AT IT AGAIN A EUGENE ORE MAN HAS DEVELOPED A LONG LOW WORKBICYCLE WITH 21 SPEEDS AND A BIG CARGO BOX JAN VANDERTUIN SAYS HIS LONG HAUL CAN CARRY MORE PACKAGES FASTER THROUGH CONGESTED DOWNTOWNS THAN ORDINARY COURIER BIKES OR TRICYCLES THE LONG HAUL IS 30 INCHES LONGER THAN AN ORDINARY BIKE AND HAS A SMALL FRONT WHEEL THAT MAKES ROOM FOR A CONTAINER LIKE ANY BIKE THE LONG HAUL CAN WEAVE THROUGH TRAFFIC THAT STOPS A CAR ANTHONY LAVALLE PRESIDENT OF NEW YORK'S FIVE STAR COURIER SAYS HIS FOUR LONG HAULS CAN CROSS MANHATTAN IN LESS THAN 10 MINUTES MORE THAN TWICE AS FAST AS A VAN THE LONG HAUL CAN CARRY AS MUCH AS 200 POUNDS OF CARGO ITS FIBERGLASS BOX IS WATERPROOF AND LOCKABLE MADE BY HUMAN POWERED MACHINES THE LONG HAUL IS ENTERING A MARKET SERVED FOR ALMOST A CENTURY BY THE BICYCLES AND TRICYCLES OF WORKSMAN TRADING OZONE PARK NY WORKSMAN'S HEAVY CYCLES ARE COMMON SIGHTS MOVING UP TO 500 POUNDS ON FACTORY FLOORS SELLING GOOD HUMOR ICE CREAM OR MAKING DELIVERIES IN NEW YORK MR VANDERTUIN SAYS THE LONG HAUL IS FASTER THAN WORKSMAN'S BIKES WHICH TYPICALLY HAVE A SINGLE GEAR BUT SOON WILL BE OFFERED WITH SEVEN IT IS NARROWER THAN WORKSMAN'S TRIKES AND THUS BETTER ABLE TO NAVIGATE TRAFFIC HE ADDS BUT WORKSMAN VICE PRESIDENT WAYNE SOSIN SAYS LONG HAUL'S TOP PRICE 1395 IS HIGH COMPARED WITH WORKSMAN'S 750 HE SAYS HE HAS A PROBLEM WITH THE STABILITY OF ANY TWOWHEELED CYCLE CARRYING 200 POUNDS DAN LONGCOOGAN OWNER OF PEDALERS EXPRESS IN EUGENE SAYS THE LONG HAUL BECOMES MORE STABLE AS YOU ADD WEIGHT THE WEIGHT IS SO LOW MR VANDERTUIN SAYS THE EXTRA EXPENSE OF HIS BIKE BUYS LIGHTNESS DURABLE COMPONENTS AND A FLASH LOOK THAT MAKES RIDERS PROUD THERE'S HOOPLA IN THE METLIFE BUILDING CONSTRUCTION MANAGERS LEHRER MCGOVERN BOVIS HAVE INSTALLED A BASKETBALL COURT AT THEIR NEW HEADQUARTERS ON THE NINTH FLOOR OF WHAT USED TO BE THE PAN AM BUILDING NEXT TO NEW YORK'S GRAND CENTRAL STATION MOST COMPANIES BUILD FITNESS CENTERS TO REDUCE HEALTHCARE COSTS LEHRER DID IT TO IMPROVE EMPLOYEE TEAMWORK THE BASKETBALL COURT IS HALF SIZE BUT THE TWO BASKETS ARE REGULATION HEIGHT 10 FEET UNDER A 17FOOT CEILING THE CEMENT FLOOR IS COVERED WITH CARPET DESIGNED FOR GYMS DURING THE DAY THE COURT IS USED FOR TRAINING SESSIONS AFTER WORK 14 MIXED TEAMS OF MEN AND WOMEN INCLUDING SOME LEHRER SUBCONTRACTORS PLAY BALL PRESIDENT JIM D'AGOSTINO SAYS THE ROOM ORIGINALLY WAS MEANT ONLY FOR TRAINING BUT SKIDMORE OWINGS & MERRILL ARCHITECT STEPHEN APKING NOTED THE CEILING WAS HIGH ENOUGH FOR BASKETBALL THE COURT INCREASES CAMARADERIE AND TEAMBUILDING SAYS MR D'AGOSTINO IT'S NOT A FITNESS KIND OF THING ADDS MR APKING CORPORATE FITNESS MANAGERS WHILE ADMIRING THE LEHRER COURT SAY THEY BUILT THEIR HEALTH FACILITIES FOR OTHER REASONS A PREVENTIVE HEALTH MEASURE IS WHY CABLEVISION INDUSTRIES PROVIDES EXERCISE MACHINES AT ITS HEADQUARTERS IN LIBERTY NY SAYS VICE PRESIDENT NICHOLAS SPERANZA TEAMBUILDING IS A SIDE EFFECT DICK WATSON MANAGER OF CORPORATE FITNESS AT AETNA LIFE & CASUALTY SAYS THE MAIN PURPOSE OF THE COMPANY'S SEVEN FITNESS CENTERS IN THE HARTFORD CONN AREA IS HEALTHCARE COST CONTAINMENT DR SAUL MILLES MEDICAL DIRECTOR AT GENERAL ELECTRIC WHICH HAS 16 FITNESS FACILITIES AROUND THE US SAYS LEHRER'S COURT IS UNUSUAL ADDING WE WOULD BE WORRIED ABOUT SPRAINED ANKLES AND FALLS LOOK MA NO SCREWS NOR ARE THERE ANY BOLTS NAILS HOOKS ZIPPERS PINS OR GLUE A YOUNG SAN FRANCISCO DESIGNER HAS BUILT A 16PIECE ROCKING CHAIR WITHOUT GLUE OR FASTENERS JOHN STRELOW SAYS FURNITURE WITHOUT FASTENERS IS SIMPLE AND INEXPENSIVE AS WELL AS EASY TO PRODUCE SHIP STORE PUT TOGETHER AND TAKE APART MR STRELOW MADE HIS ROCKER WITH INTERLOCKING PIECES AT ART CENTER COLLEGE OF DESIGN PASADENA CALIF WHERE HE HAS JUST GRADUATED THE ASSIGNMENT WAS TO DESIGN AND BUILD A CHAIR OUT OF A SINGLE PIECE OF PARTICLE BOARD FOUR FEET BY EIGHT FEET BY 3/4 INCH CURRENTLY WORKING WITH AN ARCHITECTURE FIRM MR STRELOW HAS YET TO TRY TO COMMERCIALIZE HIS DESIGN A FEW OTHERS HAVE ALREADY ENTERED THE MARKET DAVID KAWECKI OF SAN FRANCISCO'S 3D INTERIORS IS SELLING HIS PUZZLE ARMCHAIR MADE OF INTERLOCKING PIECES OF THIN BIRCH PLYWOOD CUT WITH A LASER AND PALAZZETTI OFFERS NINE FASTENERLESS PIECESTABLES BOOKSHELVES AND SCREENSDESIGNED BY SILVIO RUSSO OF NEW YORK FURNITURE WITHOUT FASTENERS HAS ITS DOUBTERS DAVID BRIGHT A SPOKESMAN FOR KNOLL GROUP A MAKER OF COMMERCIAL FURNITURE CALLS IT UNLIKELY THAT CHAIRS LIKE MR STRELOW'S COULD MEET INDUSTRY LOAD STANDARDS MR STRELOW REPLIES THAT HIS ROCKER SURVIVED A SESSION WITH A 240POUND FRIEND OF HIS 9309150051 930915 WHO'S NEWS AMERITECH AMERITECH CHICAGO THIS REGIONAL COMMUNICATIONS CARRIER NAMED DOUGLAS L WHITLEY PRESIDENT OF ITS ILLINOIS BELL TELEPHONE COMPANY HE SUCCEEDS BARRY K ALLEN WHO QUIT FRIDAY TO JOIN MARQUETTE ELECTRONICS INC MR WHITLEY 43 HAD BEEN VICE PRESIDENT OF GOVERNMENT RELATIONS SINCE JOINING THE COMPANY IN MARCH BEFORE THAT HE WAS DIRECTOR OF THE ILLINOIS DEPARTMENT OF REVENUE 9309150050 930915 INTERNATIONAL GERMAN IS CONVICTED OF SELLING MATERIALS TO IRAQ FOR WEAPONS SPECIAL TO THE WALL STREET JOURNAL AUGSBURG GERMANY A GERMAN BUSINESSMAN WAS CONVICTED AND SENTENCED TO TWO YEARS AND THREE MONTHS IN PRISON FOR SELLING MATERIALS THAT IRAQ USED IN ITS ROCKETRY AND NUCLEARWEAPONS PROGRAMS BEFORE THE GULF WAR TWO OF THE MAN'S ALLEGED ACCOMPLICES REMAIN ON TRIAL ACCUSED OF SELLING IRAQ 30 MILLION MARKS 187 MILLION OF MATERIALS IN VIOLATION OF GERMANY'S LAWS ON MUNITIONS EXPORTS ALL THREE HAVE BEEN UNDER ARREST WITHOUT BAIL SINCE FEBRUARY 1992 THE INDICTMENT ACCUSED THEM OF SUPPLYING MATERIALS FOR WEAPONS USED AGAINST SAUDI ARABIA AND ISRAEL DURING THE GULF WAR WALTER DITTEL 67 YEARS OLD CONFESSED DURING A TRIAL SESSION AUG 30 THAT HE DELIVERED SAMPLE ELECTRONIC PARTS TO IRAQ IN VIOLATION OF EXPORT CONTROLS ON EQUIPMENT WITH MILITARY POTENTIAL BECAUSE HE HAS ALREADY SPENT 18 MONTHS IN JAIL HE IS EXPECTED TO BE SET FREE SOON HE WAS A MANAGER OF THE BAVARIAN FIRM RHEINBAYERNFAHRZEUGBAU AND WAS ACCUSED WITH HIS TWO SUPERIORS ANTON EYERLE THE COMPANY HEAD AND SUBRAMANIAM VENKAT A DEPARTMENT HEAD THE INDICTMENT SAID THAT THE COMPANY WAS DOING BANNED MILITARY BUSINESS WITH IRAQ THREE YEARS BEFORE THE GULF WAR BROKE OUT AND THAT IT MADE TWO ILLEGAL DELIVERIES TO IRAQ EVEN AFTER A UNITED NATIONS EMBARGO WAS IMPOSED IN AUGUST 1990 AFTER IRAQ INVADED KUWAIT 9309150049 930915 INTERNATIONAL SHEVARDNADZE RESIGNS AS PRESIDENT HIGHLIGHTING EXTENT OF GEORGIA'S WOES BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW GEORGIA'S POLITICAL LEADER EDUARD SHEVARDNADZE RESIGNED HIGHLIGHTING THE DISINTEGRATING HOPES OF GEORGIA AND SEVERAL OTHER FORMER SOVIET STATES MR SHEVARDNADZE WAS BEST KNOWN TO THE WEST IN HIS EARLIER ROLE AS THE SOVIET FOREIGN MINISTER WHO UNDER PRESIDENT MIKHAIL GORBACHEV HELPED RESTRUCTURE THE KREMLIN'S FOREIGN POLICY AFTER THE SOVIET UNION COLLAPSED MR SHEVARDNADZE IN OCTOBER 1992 TOOK ON LEADERSHIP OF HIS NATIVE GEORGIA FOLLOWING THE VIOLENT COUP THAT OUSTED PRESIDENT ZVIAD GAMSAKHURDIA BUT RESTRUCTURING GEORGIA HAS PROVED DAUNTING ONCE ONE OF THE MOST PROSPEROUS AND FREEWHEELING SOVIET STATES GEORGIA HAS SEEN ORDER INSTITUTIONS AND THE ECONOMY RAPIDLY CRUMBLE AT AN ANGRY SESSION OF PARLIAMENT YESTERDAY IN WHICH MR SHEVARDNADZE'S AGENDA INCLUDED A VOTE TO DECLARE A STATE OF EMERGENCY LEGISLATOR DJABA IOSELIANI ACCUSED HIM OF TRYING TO IMPOSE DICTATORSHIP MR SHEVARDNADZE FURIOUS AND SHAKEN DECLARED AS OF THIS MOMENT YOU MAY CONSIDER THAT I HAVE RESIGNED HE WALKED OUT AND LATER IN THE DAY SENT HIS WRITTEN RESIGNATION TO PARLIAMENT BECAUSE MR SHEVARDNADZE'S AUTHORITY DEPENDED MORE ON HIS PERSONAL STANDING IN GEORGIA THAN ON HIS JOB AS PRESIDENT OF PARLIAMENT THERE IS NO OBVIOUS SUCCESSOR LAST NIGHT GEORGIANS WERE TRYING TO PERSUADE MR SHEVARDNADZE TO RESUME HIS POST THOSE MEMBERS OF PARLIAMENT PRESENT VOTED UNANIMOUSLY TO REFUSE MR SHEVARDNADZE'S RESIGNATION THOUSANDS OF GEORGIANS SOME ARMED GATHERED AT THE YELLOW STONE BUILDING WHERE THE LEGISLATURE SITS CALLING FOR THE DISSOLUTION OF PARLIAMENT AND MR SHEVARDNADZE'S RETURN GEORGIA'S POLITICAL UPHEAVAL FOLLOWS SIMILAR CONVULSIONS IN UKRAINE FRUSTRATED BY GOVERNMENT GRIDLOCK AND A NOSEDIVING ECONOMY PRIME MINISTER LEONID KUCHMA LAST WEEK TENDERED HIS RESIGNATION FOR THE FOURTH TIME MR KUCHMA THEN AGREED FOR THE FOURTH TIME TO STAY ON SOME OBSERVERS SAY MR SHEVARDNADZE MAY ALSO BE USING RESIGNATION AS A PLOY TO RETURN TO OFFICE WITH GREATER LEVERAGE OVER AN UNCOOPERATIVE PARLIAMENT INDEED HE TOLD A CROWD OF SUPPORTERS IN TBILISI THAT HE MIGHT WITHDRAW HIS RESIGNATION IF PARLIAMENT APPROVES HIS REQUESTED STATE OF EMERGENCY AND GOES INTO RECESS FOR A FEW MONTHS ACCORDING TO RUSSIA'S ITARTASS NEWS AGENCY MR SHEVARDNADZE SAID HE WOULD GIVE HIS FINAL DECISION IN A TELEVISED SPEECH TODAY AS YESTERDAY'S EPISODE ILLUSTRATES GEORGIA AND COUNTRIES IN THE COMMONWEALTH OF INDEPENDENT STATES SUCH AS UKRAINE BELARUS TAJIKISTAN ARMENIA AZERBAIJAN AND TO SOME EXTENT RUSSIA ITSELF SHARE THE PROBLEM OF GOVERNMENT POWER STRUGGLES THAT HAVE MADE IT IMPOSSIBLE TO ADOPT REFORMS URGENTLY NEEDED TO STEM ECONOMIC CHAOS IN GEORGIA AS IN UKRAINE THE NEW CURRENCY MEANT TO REPLACE THE RUBLE HAS DROPPED DRASTICALLY IN VALUE THE GEORGIAN COUPON THAT TRADED ON THE TBILISI STREETS AT 5000 TO THE DOLLAR IN JULY HAS DROPPED TO 12500 AND LIKE TAJIKISTAN ARMENIA AND AZERBAIJAN GEORGIA HAS SUFFERED FROM SMOLDERING WARFARE ALONG ITS BORDERS CRIME IS ANOTHER WIDESPREAD CIS PROBLEM NOW ACUTE IN GEORGIA ARMED THUGS ROAM THE STREETS AN AMERICAN DIPLOMAT WAS SHOT TO DEATH NEAR TBILISI RECENTLY WHILE DRIVING WITH THE HEAD OF GEORGIAN STATE SECURITY A DIPLOMAT BASED IN TBILISI REPORTS WHOLESALE BRIGANDAGE GOING ON IN THE CITY AND SAYS RESIDENTS FALL ASLEEP AT NIGHT TO A LULLABY OF AUTOMATIC WEAPONS FIRE 9309150048 930915 BUSINESS BRIEF MEDIMMUNE INC STOCK VALUED AT 40 MILLION TO BE PAID TO ACQUIRE A FIRM MEDIMMUNE INC GAITHERSBURG MD SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE MELVILLE BIOLOGICS FROM THE NEW YORK BLOOD CENTER FOR 40 MILLION IN NEWLY ISSUED MEDIMMUNE STOCK MEDIMMUNE A MAKER OF VACCINES AND THERAPEUTICS FOR THE TREATMENT OF INFECTIOUS DISEASE SAID IT WOULD PAY UP TO 5 MILLION IN ADDITIONAL FEES AND CONSIDERATIONS RELATED TO THE PURCHASE FROM THE NOTFORPROFIT BLOOD SUPPLY CENTER MELVILLE BIOLOGICS MELVILLE NY MAKES BLOOD DERIVATIVES USED TO PRODUCE SUCH IMMUNE GLOBULINS AS MEDIMMUNE'S CYTOGAM AND RESPIVIR PRODUCTS MEDIMMUNE SAID IT EXPECTED MELVILLE TO BEGIN CONTRIBUTING TO PROFITS BY 1996 FOR THE SIX MONTHS ENDED JUNE 30 MEDIMMUNE REPORTED A LOSS OF 7 MILLION OR 42 CENTS A SHARE ON REVENUE OF 44 MILLION 9309150047 930915 WHO'S NEWS CSX CORP CSX CORP RICHMOND VA THIS TRANSPORTATION CONCERN NAMED FRANK K TURNER VICE PRESIDENT PRODUCT DEVELOPMENT A NEW POSITION AT ITS CSX TRANSPORTATION UNIT MR TURNER 54 YEARS OLD COMES TO CSX FROM MIDSOUTH CORP JACKSON MISS WHERE HE WAS PRESIDENT AND CHIEF OPERATING OFFICER THE REGIONAL RAIL TRANSPORTATION COMPANY WAS RECENTLY ACQUIRED BY KANSAS CITY SOUTHERN INDUSTRIES INC KANSAS CITY MO 9309150046 930915 HUD SEIZES PROJECT IN TEXAS FOR ALLEGED CIVILRIGHTS VIOLATIONS WASHINGTON THE FEDERAL GOVERNMENT SEIZED CONTROL OF THE PUBLIC HOUSING AUTHORITY IN VIDOR TEXAS CITING REPEATED CIVIL RIGHTS VIOLATIONS HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS SAID HE BELIEVED IT WAS THE FIRST TIME THE DEPARTMENT TOOK SUCH AN ACTION BASED ON THE ALLEGED FAILURE OF A LOCAL AUTHORITY TO COMPLY WITH THE 1964 CIVILRIGHTS LAW AND HUD REGULATIONS HE ALSO CALLED FOR THE RESIGNATION OF THE ORANGE COUNTY HOUSING AUTHORITY EXECUTIVE DIRECTOR AND BOARD OF COMMISSIONERS THE DEPARTMENT WAS RESPONDING TO RECENT ALLEGED HARASSMENT OF BLACKS WHO MOVED INTO THE ALLWHITE PROJECT ALL SUBSEQUENTLY MOVED OUT SAYING THEY HAD BEEN SUBJECTED TO THREATS AND SLURS THE CASE DREW NATIONAL ATTENTION WHEN THE LAST RESIDENT TO MOVE OUT 37YEAROLD BILL SIMPSON WAS SHOT TO DEATH A FEW WEEKS AGO IN WHAT WAS APPARENTLY A RANDOM ROBBERY ATTEMPT AFTER MOVING TO BEAUMONT TEXAS 9309150045 930915 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ GREGORY W SCOTT 40 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS INSURANCE CONCERN'S PRUDENTIAL SECURITIES INC UNIT HE SUCCEEDS JOHN P MURRAY WHO RECENTLY WAS NAMED TO HEAD THE COMPANY'S RISKMANAGEMENT ACTIVITIES MR SCOTT WILL DIRECT TREASURY CONTROLLER TAX FINANCIAL ANALYSIS FINANCIAL PLANNING AND CREDIT ACTIVITIES MR SCOTT WAS VICE PRESIDENT AND HEAD OF THE GROUP INSURANCE BUSINESSES IN THE MIDWEST FOR PRUDENTIAL INSURANCE 9309150044 930915 TECHNOLOGY & HEALTH GROUP FORMS TO TEST A DATA SUPERHIGHWAY BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF UNIVERSITIES GOVERNMENT LABORATORIES COMPUTER CONCERNS AND TELEPHONE COMPANIES HAVE FORMED A CONSORTIUM TO TEST JUST HOW A NATIONAL INFORMATION SUPERHIGHWAY MIGHT BE ASSEMBLED AND USED THE 17MEMBER GROUP LED BY COMPANIES SUCH AS HEWLETTPACKARD CO DIGITAL EQUIPMENT CORP AMERICAN TELEPHONE & TELEGRAPH CO AND SYNOPTICS COMMUNICATIONS INC EXPECTS TO ANNOUNCE TODAY ITS PLAN TO CREATE A PROTOTYPE INFORMATION SUPERHIGHWAY A COMMUNICATIONS NETWORK CAPABLE OF TRANSMITTING HUGE AMOUNTS OF DATA AND TO SHOW THAT SUCH A NETWORK IS USEFUL IN REAL LIFE WE'RE BUILDING A TEST FREEWAY ONCE WE LEARN ABOUT THAT WE EXPECT A LOT MORE TO BE BUILT SAID WILLIAM MURPHY AN HP VICE PRESIDENT AND CHAIRMAN OF THE CONSORTIUM'S STEERING COMMITTEE SEPARATELY PRESIDENT CLINTON IS EXPECTED TO ISSUE AN EXECUTIVE ORDER TODAY CREATING A 25MEMBER ADVISORY COMMISSION ON HOW TO BUILD SUCH INFORMATION HIGHWAYS THE CLINTON ADMINISTRATION HASN'T YET CONFRONTED THE CONTENTIOUS ISSUE OF HOW GOVERNMENT REGULATIONS SHOULD MANEUVER BETWEEN THE CABLE AND TELEPHONE INTERESTS VYING TO BUILD THE NATIONAL NETWORK HOWEVER IN A REPORT TO BE ISSUED TODAY THE ADMINISTRATION WILL LAY OUT NINE PRINCIPLES INCLUDING DEVELOPING THE NETWORK THROUGH PRIVATE INITIATIVE ENSURING THAT ALL CITIZENS HAVE ACCESS TO IT CREATING STANDARDS SO THAT IT LINKS TOGETHER NEATLY AND PUTTING GOVERNMENT DATA ON THE NETWORK THE 17MEMBER CONSORTIUM WILL INDIRECTLY BENEFIT FROM GOVERNMENT DOLLARS THROUGH MEMBERS SUCH AS THE DEPARTMENT OF ENERGY'S SANDIA NATIONAL LABORATORIES THE UNIVERSITY OF CALIFORNIA THE UNIVERSITY OF NEW HAMPSHIRE OREGON STATE UNIVERSITY AND OHIO STATE UNIVERSITY BUT THE BIGGEST DIRECT INVESTMENT OF STAFF AND EQUIPMENT WILL COME FROM PRIVATE INDUSTRY MR MURPHY SAID ALL OF US FELT THAT IF IT'S REALLY GOING TO HAPPEN THE PRIVATE SECTOR AND INDUSTRY HAVE TO TAKE THE LEAD HE SAID IT'S ENLIGHTENED SELFINTEREST MEMBER COMPANIES SUCH AS HP SUN MICROSYSTEMS INC AND NOVELL INC WILL PROVIDE COMPUTERS AND SOFTWARE WHILE MEMBERS SUCH AS AT&T AND SPRINT CORP WILL PROVIDE COMMUNICATIONS LINES IN ITS FIRST DEMONSTRATION THE CONSORTIUM WILL LINK NINE US SITES USING HIGHSPEED COMMUNICATIONS LINES TO GIVE SCIENTISTS ACCESS TO ENVIRONMENTAL DATA COMPILED OVER THE PAST 20 YEARS BY INSTITUTIONS AROUND THE COUNTRY IN A SECOND DEMONSTRATION SCHEDULED FOR 1994 THE CONSORTIUM WILL LINK HOSPITALS AND OTHER HEALTHCARE INSTITUTIONS TO TEST HOW A DATA HIGHWAY CAN STREAMLINE HEALTHCARE TASKS ONE AIM FOR EXAMPLE IS TO CREATE A DOCTOR'S WORKSTATION THAT CAN QUICKLY PULL UP A PATIENT'S MEDICAL RECORDS FROM ACROSS THE COUNTRY DANIEL PEARL IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9309150043 930915 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN KAJ AHLMANN 43 YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF EMPLOYERS REINSURANCE CORP KANSAS CITY KAN THE PROPERTY AND CASUALTY REINSURING UNIT OF GENERAL ELECTRIC'S FINANCIAL SUBSIDIARY GE CAPITAL SERVICES INC MR AHLMANN WHO HAS BEEN MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF EMPLOYERS REINSURANCE CORP INTERNATIONAL A SUBSIDIARY IN COPENHAGEN DENMARK SUCCEEDS THOMAS S CASE 52 WHO IS LEAVING THE COMPANY 9309150042 930915 BUSINESS BRIEF OUTBOARD MARINE CORP AFTER A CHARGE LOSS IS SEEN FOR FISCAL FOURTH QUARTER OUTBOARD MARINE CORP WAUKEGAN ILL SAID IT WILL TAKE A PRETAX RESTRUCTURING CHARGE OF 375 MILLION IN ITS FISCAL FOURTH QUARTER TO REORGANIZE EUROPEAN OPERATIONS THE COMPANY ALSO SAID LOSSES IN EUROPEAN MARKETS WILL RESULT IN A LOSS FOR THE QUARTER WHICH ENDS SEPT 30 IN THE YEAREARLIER QUARTER THE MAKER OF MARINE ENGINES AND BOATS REPORTED NET INCOME OF 3 MILLION OR 16 CENTS A SHARE ON SALES OF 3152 MILLION OUTBOARD SAID IT WILL DRAMATICALLY DOWNSIZE ITS EUROPEAN HEADQUARTERS STAFF CLOSE ITS HEADQUARTERS FACILITY IN BRUGGE BELGIUM DECENTRALIZE CERTAIN FUNCTIONS AND CLOSE ITS BRUGGE MANUFACTURING PLANT OUTBOARD SAID THE RESTRUCTURING ACTIONS AND THE CHARGE COMPLETE ITS PROFIT IMPROVEMENT PROGRAM ANNOUNCED LAST JULY 9309150041 930915 BUSINESS BRIEF NEW ENGLAND MUTUAL LIFE INSURANCE NEW ENGLAND INVESTMENT AND REICH & TANG COMBINE NEW ENGLAND INVESTMENT COS AND REICH & TANG LP SAID REICH & TANG'S UNITHOLDERS APPROVED A COMBINATION OF THE TWO INVESTMENT MANAGEMENT FIRMS' OPERATIONS WHICH WILL CREATE A LIMITED PARTNERSHIP WITH MORE THAN 60 BILLION IN ASSETS UNDER MANAGEMENT REICH & TANG A SMALL NEW YORKBASED MUTUALFUND PARTNERSHIP ISSUED 22 MILLION ADDITIONAL LIMITED PARTNERSHIP UNITS WITH A MARKET VALUE OF MORE THAN 440 MILLION OF THE 22 MILLION UNITS 110000 ARE GENERAL PARTNERSHIP UNITS WHICH WILL ALLOW NEW ENGLAND INVESTMENT A UNIT OF BOSTON'S NEW ENGLAND MUTUAL LIFE INSURANCE CO TO SUCCEED REICH & TANG INC AS GENERAL PARTNER OF THE NEW PARTNERSHIP THE BALANCE ARE LIMITED PARTNERSHIP UNITS TO BE OWNED BY NEW ENGLAND INVESTMENT'S PARENT COMPANY THE INSURER WILL OWN 65 OF THE 31994000 UNITS OUTSTANDING 9309150040 930915 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK THIS PUBLISHING AND INFORMATION SERVICES CONCERN NAMED THOMAS G HUDSON SENIOR VICE PRESIDENT AND GENERAL MANAGER OF ITS FW DODGE DIVISION AN INFORMATION SERVICES PROVIDER IN THE CONSTRUCTION MARKETPLACE THE POST HAS BEEN VACANT SINCE DECEMBER 1990 MR HUDSON 47 YEARS OLD HAD BEEN VICE PRESIDENT SERVICES SECTOR DIVISION AT INTERNATIONAL BUSINESS MACHINES CORP 9309150039 930915 BUSINESS BRIEF HILLS DEPARTMENT STORES INC BANKRUPTCY COURT CONFIRMS RETAILER'S PLAN TO REORGANIZE HILLS DEPARTMENT STORES INC SAID ITS PLAN OF REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE HAS BEEN CONFIRMED BY COURT ORDER SIGNED BY BANKRUPTCY COURT JUDGE TINA L BROZMAN IN THE SOUTHERN DISTRICT OF NEW YORK THE CANTON MASS DISCOUNT RETAILER SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY ON OCT 4 AS HILL STORES CO WITH 151 RETAIL STORES IN 11 STATES A SYNDICATE OF BANKS HEADED BY CHEMICAL BANK HAS COMMITTED TO LEND HILLS 225 MILLION UPON EMERGENCE FROM BANKRUPTCY AS PART OF A THREEYEAR UNSECURED WORKING CAPITAL FACILITY IN ADDITION THE COMPANY SAID IT HAS RECEIVED PRELIMINARY APPROVAL FROM THE NEW YORK STOCK EXCHANGE TO LIST ITS NEW COMMON STOCK 9309150038 930915 BUSINESS BRIEF HYUNDAI MOTOR CO US SALES ARM SAYS PRICES ON 1994 MODELS TO RISE 3 HYUNDAI MOTOR AMERICA SAID PRICES FOR ALL 1994 HYUNDAI MODELS WILL INCREASE 3 OR 281 FROM 1993 PRICES THE US SALES ARM OF SOUTH KOREA'S HYUNDAI MOTOR CO BASED IN FOUNTAIN VALLEY CALIF SAID THE INCREASE REFLECTS EQUIPMENT CHANGES ON VARIOUS MODELS INCLUDING EMISSION SYSTEMS UPGRADES DRIVER'S SIDE AIRBAGS AND CFCFREE AIR CONDITIONING SYSTEMS EXCLUDING ADDED EQUIPMENT THE AVERAGE PRICE INCREASE ON ITS 1994 MODEL LINE IS 11 OR 91 HYUNDAI SAID 1994 BASE PRICES ON ITS SUBCOMPACT EXCEL MODEL RANGE FROM 7190 TO 8099 WITH AN AVERAGE INCREASE OF 21 OR 156 BASE PRICES ON HYUNDAI'S MIDSIZE SEDAN THE SONATA WHICH INCLUDE AUTOMATIC TRANSMISSIONS BEGIN AT 12799 AND GO TO 15769 FOR THE V6 POWERED GLS MODEL 9309150037 930915 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL INFLATION DELIVERS SMALL BUT WELCOME TAX BENEFITS FOR 1994 STANDARD DEDUCTIONS WILL CLIMB BY 100 FOR A SINGLE PERSON AND BY 150 FOR COUPLES FILING JOINTLY AND HEADS OF HOUSEHOLDS THE BENEFIT OF ITEMIZED DEDUCTIONS GENERALLY WILL BE REDUCED AFTER 1994 ADJUSTED GROSS INCOME REACHES 111800 UP FROM 108450 IN 1993 THRESHOLDS FOR THE 28 AND 31 RATE BRACKETS ALSO WILL RISE BUT YOUNG NOTES THE THRESHOLDS FOR THE NEW 36 AND 396 BRACKETS WILL REMAIN THE SAME IN 1994 AS IN 1993 CALIFORNIA PLEASES CLINTON AS WELL AS MULTINATIONALS WITH ITS TAXRELIEF BILL THE BILL AWAITING GOV WILSON'S SIGNATURE TAKES THE CLINTON ADMINISTRATION OFF A DIPLOMATIC HOOK THE BILL EASES STATETAX BURDENS UNDER A WORLDWIDE UNITARY SYSTEM THAT RANKLES US AND FOREIGN COMPANIES AND OTHER NATIONS BRITAIN THREATENED RETALIATION IF THE LAW WEREN'T REVISED THE ADMINISTRATION TRIED TO AVOID TAKING SIDES BUT IT WAS ORDERED BY THE US SUPREME COURT TO GIVE ITS VIEWS ON WHETHER THE COURT SHOULD HEAR A CONSTITUTIONAL CHALLENGE TO THE CURRENT LAW BY BARCLAYS BANK OF BRITAIN THE TREASURY WON'T COMMENT ON CALIFORNIA'S BILL BUT A RELIEVED ADMINISTRATION IS LIKELY TO SAY IN A BRIEF WITHIN A MONTH THAT THE COURT NEEDN'T HEAR THE APPEAL BECAUSE THE ISSUE IS MOOT MULTINATIONALS GENERALLY ARE HAPPY WITH THE BILL DIPLOMATIC SOURCES SAY BRITAIN IS EXPECTED TO WITHDRAW ITS THREAT BUT JAMES CARTER COUNSEL TO A GROUP OF MORE THAN 50 FOREIGNOWNED COMPANIES INSISTS THAT THE SUPREME COURT SHOULD HEAR THE BARCLAYS CASE BECAUSE THE BILL APPLIES TO FUTURE TAXES NOT PAST ISSUES IRS RESEARCH AUDITS WILL ZOOM IN ON MORE FINELY SLICED SAMPLES OF RETURNS FOR 30 YEARS THE IRS RELIED ON PERIODIC EXHAUSTIVE AUDITS OF A CROSS SECTION OF RETURNS FOR DATA TO FORMULATE CRITERIA FOR AUDITS AND ENFORCEMENT THEN LAST FALL THE IRS SAID IT WOULD CURTAIL THIS COSTLY TAXPAYER COMPLIANCE MEASUREMENT PROGRAM AND GET DATA IN WAYS LESS BURDENSOME FOR TAXPAYERS BUT THE GENERAL ACCOUNTING OFFICE CRITICIZED THOSE MOVES AS LIKELY TO IMPAIR AUDITSELECTION FORMULAS NOW IN A TURNABOUT THE IRS SAYS IT HAS PLANS TO REINVIGORATE TCMP BY EXPANDING THE SCOPE ABOUT 150000 RETURNS OF ALL TYPES FOR 1994 ARE TO BE PICKED RANDOMLY IN 1995 TO REPRESENT 25 BUSINESS SECTORS FIVE PERSONALINCOME GROUPS AND 30 GEOGRAPHIC AREAS BEFORE ONLY ONE TYPE OF RETURN WAS DONE AT A TIME RETURNS WERE GROUPED BY INCOME AND IN ONLY SEVEN AREAS SPECIALIZATION COMPUTERS AND BETTER FILES ARE TO MAKE AUDITORS MORE EFFICIENT AT A RECENT MEETING OF THE COMMISSIONER'S ADVISORY GROUP OF OUTSIDE TAX EXPERTS MEMBERS PRAISED THESE PLANS AUDITSELECTION FORMULAS ARE OUTDATED THE MOST RECENT RESEARCH AUDITS COVERED 54000 PERSONAL RETURNS FOR 1988 TO DOUBLE THE ODDS FOR AN IRS AUDIT MOVE TO NEVADA THE 1992 RATE WAS 195 THERE COMPARED WITH 091 NATIONALLY SAYS GEORGE GUTTMAN IN A STUDY FOR THE NATIONAL INSTITUTE OF BUSINESS MANAGEMENT ALASKA AND CALIFORNIA RANKED NEXT HIGHEST AT 024 WISCONSIN WAS BARELY NOTICED PUSHBUTTON FILING BY PHONE WILL BE AVAILABLE IN 1994 TO 47 MILLION INDIVIDUALS IN FLORIDA INDIANA KENTUCKY MICHIGAN SOUTH CAROLINA WEST VIRGINIA AND OHIO IN A TEST IN OHIO THIS YEAR 149000 SINGLE TAXPAYERS WHO OTHERWISE WOULD HAVE USED THE SIMPLE FORM 1040EZ FILED RETURNS THIS WAY A PEEK INSIDE THE IRS IS OFFERED BY ITS RELEASE OF SPECIALIZED GUIDEBOOKS FOR AUDITORS THE FIRST OF 80 COVER THE INTRICACIES OF EXAMINING LAWYERS TRUCKERS MORTUARIES AIRCHARTER COMPANIES BEDANDBREAKFAST OPERATORS AND TAXI CONCERNS THE IRS DIDN'T EXPLAIN THOSE PRIORITIES THE GRIM REAPING OF HIGHER INCOME TAXES HAS ESTATES IN MOURNING THE NEW LAW TAXES INCOME OF ESTATES AND TRUSTS FAR MORE HEAVILY THAN THAT OF INDIVIDUALS THE NEW 36 RATE APPLIES TO TAXABLE INCOME OVER 115000 FOR SINGLE TAXPAYERS BUT OVER 5500 FOR ESTATES AND TRUSTS THE NEW 396 RATE HITS INDIVIDUALS AT 250001 BUT ESTATES AND TRUSTS AT 7501 AND UNLIKE TRUSTS NOTES BERNARD BARNETT OF BDO SEIDMAN CPAS ESTATES ARE CREATED INVOLUNTARILY BY DEATHS NEVER TO AVOID TAXES BARNETT SAYS THIS EXAMPLE SHOWS THE NEW LAW'S INEQUITY A MAN WHOSE TOP RATE IS 28 GETS A 30000 BONUS IN 1993 AND PAYS TAX OF 8400 ON IT YET IF HE DIES IN 1993 BEFORE THE BONUS ARRIVES MAKING IT INCOME TO HIS ESTATE THE ESTATE PAYS 396 ON EVERYTHING OVER 750011880 IF IT ALL IS TAXED AT THAT RATE THE ESTATE MAY BE ABLE TO AVOID THIS BY DISTRIBUTING THE CASH BEFORE YEAR END TO BENEFICIARIES TAXED AT LOWER RATES BUT STATE LAWS CONTROLLING DISTRIBUTIONS MAY DELAY THEM UNTIL IT'S TOO LATE A FINAL INDIGNITY ADDS BARNETT THE LAW OFFERS AN INSTALLMENTPAYMENT PLAN TO PEOPLE HIT BY THE NEW TOP RATES IN 1993 BUT DENIES IT TO ESTATES AND TRUSTS BRIEFS JAMES FIELDS HAS RESIGNED AS THE TREASURY'S TAX LEGISLATIVE COUNSEL A SUCCESSOR HASN'T BEEN NAMED HOUSE REPUBLICANS PROPOSE A PACKAGE OF BILLS TO REPEAL 1993'S RETROACTIVE TAX INCREASES AND TO BAR RETROACTIVE INCREASES IN THE FUTURE 9309150036 930915 ALLSTAR ANALYSTS 1993 SURVEY AIRLINES BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL A FEW YEARS AGO NO ONE WANTED TO LISTEN WHEN ALEX BROWN & SONS ANALYST JOHN LARKIN TALKED ABOUT REGIONAL AIRLINES NOW AS MAJOR AIRLINES STRUGGLE TO MAKE MONEY AND REGIONALS REAP RECORD PROFITS THAT'S ALL INVESTORS WANT TO HEAR ABOUT MR LARKIN IS HAPPY TO OBLIGE BASKING IN THE GLOW OF A STRONG RUNUP IN THE GROUP AND HIS EQUALLY STRONG BUY RECOMENDATIONS THE TOP AIRLINESTOCK PICKER FOR 1992 SAYS THE SMALL CARRIERS WHOSE MAIN PURPOSE IS TO FEED PASSENGERS TO THE HUBS OF THE BIG AIRLINES ARE NOW GROWTH STOCKS MORE THAN ANYTHING ELSE IN 1992 MR LARKIN RECOMMENDED MESA AIRLINES WHOSE STOCK MORE THAN TRIPLED ALONG WITH ATLANTIC SOUTHEAST AIRLINES COMAIR HOLDINGS AND SKYWEST BIG WINNERS ALL RUNNERUP JAMES D PARKER OF ROBINSONHUMPHREY RODE MOST OF THE SAME WINNERS BUT CAME TO SOME OF THEM LATER IN THE YEAR THAN MR LARKIN DID A CONTRARIAN MIGHT ARGUE THAT WITH ALMOST EVERYBODY ON BOARD NOW IS THE TIME TO GET OUT BUT MR LARKIN SEES ANOTHER THREETOFIVEYEAR RUN FUELED BY EARNINGS GROWTH AS REGIONALS TAKE OVER ROUTES FROM THE MAJORS HERE'S WHY AS HIGHCOST MEGACARRIERS SUCH AS DELTA AIR LINES OR UAL'S UNITED AIRLINES LOSE MONEY ON SHORTER ROUTES THEY TAKE THEIR JETS OFF THAT SERVICE AND TURN THE FLYING TO THEIR REGIONAL PARTNERS WHICH SHARE THE COMPUTERRESERVATION CODE AND NAME OF THE LARGER CARRIER THE REGIONALS MAKE MONEY WITH LOWER LABOR COSTS AND SMALLER YET EFFICIENT TURBOPROP PLANES REGIONALS SUCH AS ATLANTABASED ATLANTIC SOUTHEAST AIR A DELTA PARTNER CAN BREAK EVEN BY FILLING JUST 11 SEATS ON ITS 30SEAT PLANES SAYS MR PARKER OF ROBINSONHUMPHREY INCREASE THAT TO 15 SEATS HALF FULL AND PROFIT MARGINS EXCEED 25 BOTH MR PARKER AND MR LARKIN RATE ATLANTIC SOUTHEAST A BUY THEY ALSO LIKE MESA AIRLINES A FARMINGTON NM CARRIER THAT FEEDS FLIGHTS OF UNITED AIRLINES AND USAIR AMONG OTHERS AND HAS A HUB OF ITS OWN IN ALBUQUERQUE NM MR PARKER HAS TWO OTHER DELTA PARTNERS ON HIS BUY LIST CINCINNATIBASED COMAIR AND ST GEORGE UTAHBASED SKYWEST HE SAYS ROUTE ADDITIONS SHOULD HELP REGIONAL AIRLINES POST 25PLUS ANNUAL PROFIT GROWTH FOR THE NEXT SEVERAL YEARS THE CONTRARIAN VIEW COMES FROM THIRDRANKED DANIEL HERSH WHO UNTIL JANUARY WAS THE DENVERBASED AIRLINE ANALYST FOR KEMPER SECURITIES MR HERSH LEFT THE FIRM IN JANUARY DECLINING TO MOVE WHEN KEMPER CONSOLIDATED ITS RESEARCH OPERATIONS IN CHICAGO HE NOW IS AN AVIATION CONSULTANT AND PRIVATE INVESTOR IN DENVER AND AN INVESTOR IN TWO CLOSELY HELD CARRIERS THERE ARE SOME REALLY GOOD REGIONALS OUT THERE BUT I THINK THEIR PRICES ARE TOO HIGH MR HERSH SAYS HE THINKS MANY ROUTES BEING EXPLOITED BY THE REGIONALS ARE RIPE FOR NEW COMPETITION FROM STARTUP JET CARRIERS NOR IS MR HERSH READY TO EMBRACE THE MAJOR AIRLINES WHICH HE SAYS HE HAS LARGELY SHUNNED SINCE 1989 HE RECOMMENDED AMR AND UAL BRIEFLY DURING 1992 BUT TO LITTLE EFFECT HIS BIG GAINS WERE FROM PARTIALYEAR PICKS ON MESA SKYWEST AND AIRTRAN HE BELIEVES ALL THE RECENT TALK ABOUT CUTTING LABOR COSTS HIDES A MORE FUNDAMENTAL PROBLEM THE FAILURE OF AIRLINE MANAGEMENTS TO DRASTICALLY RESTRUCTURE THEIR OPERATIONS 9309150035 930915 EPA ENACTS RULE TO LOWER DRYCLEANER SOLVENT FUMES WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY ISSUED A FINAL RULE AIMED AT REDUCING EMISSIONS OF A SOLVENT COMMONLY USED BY DRY CLEANERS THE RULE IS THE FIRST ISSUED FOR ANY OF THE 189 TOXIC AIR POLLUTANTS DESIGNATED FOR EPA REGULATION UNDER THE 1990 CLEAN AIR ACT IT REPRESENTS THE FIRST TIME DRY CLEANERS HAVE BEEN REQUIRED TO REDUCE TOXIC AIR EMISSIONS UNDER FEDERAL LAW UNDER THE REGULATION DRY CLEANERS ARE EXPECTED TO REDUCE BY AS MUCH AS 80 EMISSIONS OF PERCHLOROETHYLENE THE MOST WIDELY USED DRYCLEANING SOLVENT DRY CLEANERS WILL BE REQUIRED TO REDUCE SUCH EMISSIONS BY INSTALLING REFRIGERATED CONDENSERS ON THEIR DRYCLEANING MACHINES THE CONDENSERS REMOVE THE VAPORIZED PERCHLOROETHYLENE BY TURNING IT BACK INTO A LIQUID WHICH IS THEN REUSED AS A CLEANING AGENT BUSINESSES THAT HAVE ALREADY INSTALLED A POLLUTIONCONTROL DEVICE CALLED A CARBON ADSORBER WHICH USES AN ALTERNATIVE METHOD TO RECYCLE THE PERCHLOROETHYLENE WILL BE EXEMPTED FROM THE REQUIREMENT IN ADDITION BUSINESSES WITH ANNUAL REVENUE OF LESS THAN 75000 WILL BE EXEMPTED 9309150034 930915 WHO'S NEWS FLEXSTEEL INDUSTRIES INC FLEXSTEEL INDUSTRIES INC DUBUQUE IOWA BRUCE LAURITSEN 51 YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE EFFECTIVE SEPT 30 HE SUCCEEDS JACK B CRAHAN 70 WHO CONTINUES AS CHAIRMAN OF THIS FURNITURE MAKER THE POST OF CHIEF OPERATING OFFICER IS VACANT 9309150033 930915 THE BATTLE OVER NAFTA CLINTON OPENS FREETRADE DRIVE BUT SIDE ACCORDS COULD FALL SHORT BY ASRA Q NOMANI AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON LAUNCHED HIS CAMPAIGN TO SELL THE NORTH AMERICAN FREE TRADE AGREEMENT SIGNING LABOR AND ENVIRONMENTAL DEALS THAT PROVIDE POLITICAL COVER FOR PACT SUPPORTERS BUT THE SIDE AGREEMENTS DON'T GO FAR ENOUGH TO WIN OVER OPPONENTS OR TO EASE FEARS THAT NAFTA MAY COST THE US MILLIONS OF JOBS FLANKED BY FORMER PRESIDENTS BUSH CARTER AND FORD AT A WHITE HOUSE CEREMONY MR CLINTON DELIVERED AN IMPASSIONED SPEECH THAT TOUTED THE SIDE AGREEMENTS AND ATTEMPTED TO DISPEL SUGGESTIONS THAT HE IS ONLY A RELUCTANT SUPPORTER OF THE TRADE PACT THE SIGNING ALLOWED MR CLINTON TO SAY THAT HE UPHELD HIS CAMPAIGN PROMISE TO BEEF UP NAFTA BY PROVIDING FOR STRENGTHENED ENFORCEMENT OF ENVIRONMENTAL AND LABOR STANDARDS PARTICULARLY IN MEXICO HE ALSO SIGNED A DEAL TO PROTECT AGAINST A SURGE OF IMPORTS AS TRADE BARRIERS ARE DISMANTLED AMONG THE US CANADA AND MEXICO OVER THE NEXT 15 YEARS THE SIDE DEALS WOULD SET UP TWO COMMISSIONS TO HANDLE COMPLAINTS OVER EACH COUNTRY'S ENFORCEMENT OF ENVIRONMENTAL AND LABOR LAWS BUT THE COMMISSIONS WOULDN'T BE NEARLY AS STRONG AS MR CLINTON PROMISED DURING THE CAMPAIGN FOR EXAMPLE HE PLEDGED THAT THEY WOULD BE ABLE TO ASSESS FINES AGAINST COUNTRIES THAT DON'T ADEQUATELY ENFORCE THEIR LAWS BUT UNDER THE AGREEMENTS HE SIGNED YESTERDAY THEY COULDN'T DO THAT ON THEIR OWN INSTEAD IF THEY FAIL TO WIN VOLUNTARY COMPLIANCE DISPUTES WOULD BE HANDLED BY SEPARATE CONFLICTRESOLUTION PANELS WHAT'S MORE THE ADMINISTRATION'S PUSH TO SELL NAFTA WHICH HAD BEEN EXPECTED TO BE RUNNING FAST AND HARD BY THIS POINT SO FAR HAS COME UP LAME THE PRESIDENT HAS REALLY BLOWN THIS ONE POLITICALLY SAID KENT JONES A FORMER TRADE OFFICIAL AT THE STATE DEPARTMENT AND A PROFESSOR AT BABSON COLLEGE HE LEFT NAFTA HANGING IN THE WIND AND THE INHERENT POLITICAL VALUE OF THE SIDE AGREEMENTS HAS BEEN LOST ROBERT HORMATS A FORMER DEPUTY US TRADE REPRESENTATIVE WHO IS A SENIOR EXECUTIVE AT GOLDMAN SACHS & CO ADDED THE SIDE DEALS MAKE THE AGREEMENT MORE PALATABLE TO PEOPLE WHO WOULD LIKE TO SUPPORT IT FOR OTHER REASONS BUT SO FAR THEY DON'T SEEM TO HAVE CONVERTED VERY MANY OPPONENTS THAT'S LARGELY BECAUSE THE SIDE DEALS DON'T ADDRESS CONCERNS ABOUT JOB LOSSES AND THEY DON'T PRESS MEXICO VERY HARD ON ENVIRONMENTAL ISSUES THE ADMINISTRATION MAINTAINS THAT IT HASN'T YET BEGUN SELLING NAFTA WHICH THEY INSIST WOULD CREATE NEW JOBS WE START BY CLEARING OUT THE MISINFORMATION ABOUT NAFTA SAYS COMMERCE SECRETARY RON BROWN THAT PROCESS BEGAN FULL FORCE TODAY WITH THE PRESIDENT AND THREE OF HIS PREDECESSORS IT IS UNFAIR TO DO A HEAD COUNT WHEN THE BATTLE HAS JUST BEEN JOINED THE CLINTON ADMINISTRATION HOPED TO USE THE SIDE DEALS TO WOO ENVIRONMENTAL GROUPS BUT SUCH BIG ORGANIZATIONS AS THE SIERRA CLUB GREENPEACE AND FRIENDS OF THE EARTH CONTINUE TO OPPOSE NAFTA THEY MAINTAIN THAT THE ENVIRONMENTAL SIDE AGREEMENT WON'T DISSUADE US COMPANIES FROM GOING TO MEXICO TO TAKE ADVANTAGE OF ITS LAX ENVIRONMENTAL ENFORCEMENT THUS PUTTING PRESSURE ON THE US TO RELAX ITS OWN STANDARDS GREENPEACE MEMBERS YESTERDAY UNFURLED A 15FOOT BANNER THAT READ NIX NAFTA FAIR TRADE NOT TOXIC TRADE DURING A CONGRESSIONAL HEARING WHERE ADMINISTRATION OFFICIALS SPOKE NEVERTHELESS MORE MAINSTREAM ENVIRONMENTAL GROUPS SUCH AS THE NATIONAL WILDLIFE FEDERATION THE WORLD WILDLIFE FUND THE NATIONAL AUDUBON SOCIETY AND THE NATURAL RESOURCES DEFENSE COUNCIL BACK THE PACT THEY ARGUE THE PLANNED ENVIRONMENTAL COMMISSION WILL GIVE THE US LEVERAGE IT HASN'T HAD BEFORE TO ENCOURAGE MEXICO TO CLEAN UP ITS ENVIRONMENT THE ADMINISTRATION ALSO UNVEILED YESTERDAY AN 8 BILLION BORDER ENVIRONMENT CLEANUP PLAN THE MONEY WOULD COME FROM THE INTERAMERICAN DEVELOPMENT BANK EXISTING GOVERNMENT PROGRAMS IN MEXICO AND THE US AND THE WORLD BANK THE SIDE PROVISIONS ON LABOR STANDARDS HAVE HAD EVEN LESS SUCCESS THAN THE ENVIRONMENTAL DEAL IN WINNING OVER CRITICS LABOR GROUPS INCLUDING THE AFLCIO WORRY THAT THE PROPOSED DISPUTERESOLUTION PROCESS WOULD BE TOO CUMBERSOME TO ASSURE ADEQUATE MEXICAN ENFORCEMENT OF CHILD LABOR AND WORKERSAFETY STANDARDS AND THEY NOTE THE SIDE DEAL WOULDN'T REQUIRE MEXICO TO ASSURE ITS WORKERS COLLECTIVE BARGAINING RIGHTS BUT PRESIDENT CLINTON SAID THE LABOR SIDE DEAL ALREADY HAS BEEN A PLUS NOTING THAT MEXICO HAS AGREED TO TIE ITS MINIMUM WAGE TO THE GROWTH IN ITS ECONOMY IT MEANS THAT THERE WILL BE AN EVEN MORE RAPID CLOSING OF THE GAP BETWEEN OUR TWO WAGE RATES HE SAID MR CLINTON TRAVELS TODAY TO NEW ORLEANS WHERE HE WILL GIVE A SPEECH IN SUPPORT OF THE NAFTA AGREEMENT THE ADMINISTRATION ALSO PLANS TO SEND CABINET MEMBERS AROUND THE COUNTRY TO PROMOTE THE AGREEMENT MUCH AS IT DID AFTER IT INTRODUCED ITS BUDGET PLAN THE WILD CARD IN ALL THIS IS A RECENT RULING BY A FEDERAL JUDGE THAT THE ADMINISTRATION NEEDS TO FILE AN ENVIRONMENTALIMPACT STATEMENT FOR NAFTA A DECISION IN THE ADMINISTRATION'S APPEAL OF THE RULING IS EXPECTED SOON IF THE ADMINISTRATION LOSES THE EXPECTED NOVEMBER VOTE ON NAFTA COULD BE DELAYED FOR MONTHS 9309150032 930915 TECHNOLOGY HITACHI RETURNS TO CHIP MARKET THAT JAPAN LEFT BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEARLY HALF A DECADE AFTER JAPAN'S SEMICONDUCTOR COMPANIES ALL BUT ABANDONED THE LUCRATIVE MARKET FOR COMPUTER MICROPROCESSORS TO THEIR US RIVALS HITACHI LTD SAYS IT INTENDS TO JUMP BACK IN WITH A CHIP FOR USE IN THE LATEST CLASS OF HANDHELD COMPUTERS WHILE MANY DETAILS REMAIN TO BE WORKED OUT HITACHI'S GAMBIT MARKS THE FIRST TIME IN YEARS THAT A JAPANESE COMPANY HAS SHOWN ANY INTEREST IN DESIGNING AND SELLING ITS OWN MICROPROCESSORS WHICH SERVE AS THE BRAINS OF WORKSTATIONS AND PERSONAL COMPUTERS AND WHICH HAVE HELPED RACK UP HUGE PROFITS FOR SUCH US COMPANIES AS INTEL CORP THE JAPANESE HAVE BEEN LEFT OUT OF THIS BOOM THOUGH THEY HAVE REMAINED STRONG IN MEMORY CHIPS WHICH ARE USED IN EVERYTHING FROM COMPUTERS TO VIDEOCASSETTE RECORDERS IN MANY CASES THE JAPANESE CHIP MAKERS HAVE BEEN REDUCED TO MAKING MICROPROCESSORS FOR US COMPANIES NEC CORP AND TOSHIBA CORP FOR INSTANCE ARE MAKING CHIPS BASED ON A DESIGN FROM MIPS TECHNOLOGIES INC A UNIT OF SILICON GRAPHICS INC FUJITSU LTD IS DEVELOPING CHIPS BASED ON THE SPARC ARCHITECTURE ESTABLISHED BY SUN MICROSYSTEMS INC EVEN HITACHI IS DEPENDING ON HEWLETTPACKARD CO TO SUPPLY A DESIGN FOR A FUTURE LINE OF WORKSTATION MICROPROCESSORS IN THIS INDUSTRY THE MICROPROCESSOR ARCHITECTURE IS ALWAYS FROM THE US SO HITACHI'S PROJECT IS VERY VERY INTERESTING SAYS SHIGERU YOSHINAKA AN ANALYST WITH BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD THE SUCCESS OF US CHIP MAKERS HAS LARGELY RESULTED FROM THEIR ABILITY TO ESTABLISH THEIR DESIGNS AS STANDARDS A PROCESS THAT ENTAILS NOT ONLY FINDING HARDWARE MAKERS TO USE A MICROPROCESSOR IN THEIR COMPUTERS BUT ALSO SIGNING UP SOFTWARE COMPANIES TO WRITE OPERATING SYSTEMS AND APPLICATIONS PROGRAMS THAT WILL RUN ON THE CHIP ONCE HARDWARE AND SOFTWARE COMPANIES HAVE MADE THOSE COMMITMENTS TO A CHIP IT'S MUCH MORE DIFFICULT FOR OTHERS TO BREAK INTO THE MARKET WITH A NEW CHIP HITACHI AND FUJITSU LEARNED THAT THE HARD WAY IN 1986 THE TWO AGREED TO DEVELOP A MICROPROCESSOR BASED ON A JAPANESEDESIGNED ARCHITECTURE CALLED TRON TO CHALLENGE US STANDARDSETTERS INTEL AND MOTOROLA INC BUT THE NEW CHIP FLOPPED IN THE MARKET BECAUSE THERE WAS NO SOFTWARE FOR IT THIS TIME HITACHI SAYS CHANGES IN THE PC MARKET COULD ALLOW IT TO ELBOW ITS WAY INTO THE FIELD IN PARTICULAR IT POINTS TO A NEW CLASS OF HANDHELD COMPUTERS THAT COMBINE COMPUTING AND TELECOMMUNICATIONS FUNCTIONS DUBBED PERSONAL COMMUNICATORS OR PERSONAL DIGITAL ASSISTANTS BECAUSE A MARKET FOR THESE DEVICES HAS YET TO TAKE SHAPE A BATTLE OVER MICROPROCESSOR STANDARDS IS LOOMING THAT HITACHI HOPES WILL ALLOW IT TO GAIN A FOOTHOLD NORIO SOBAJIMA MANAGER OF HITACHI'S SEMICONDUCTOR PLANNING DEPARTMENT SAYS THE COMPANY WILL FOCUS ON A CHIP CALLED THE SH WHICH IT CURRENTLY PLANS TO USE IN EMBEDDED APPLICATIONS SUCH AS CONTROLLING MODEMS AND ARRAYS OF DISK DRIVES TO ENTER THE PERSONAL COMMUNICATOR MARKET WE WILL BE DEVELOPING A DEDICATED PROCESSOR FROM THE SH MR SOBAJIMA SAYS THE COMPETITION NOW IS A RACE TO SET THE STANDARD HE ADDS THAT'S A RACE HITACHI CONCEDES IT CAN'T WIN ON ITS OWN MR SOBAJIMA SAYS THE COMPANY IS LOOKING FOR A TELECOMMUNICATIONS PARTNER TO HELP IT DEVELOP ITS OWN PERSONAL COMMUNICATOR THOUGH HE WOULDN'T SAY WHICH COMPANIES HITACHI IS CONSIDERING WHEN AND IF HITACHI'S MICROPROCESSOR DOES COME TO MARKET IT'S GOING TO FACE A STIFF FIGHT AMERICAN TELEPHONE & TELEGRAPH CO HAS AGGRESSIVELY MARKETED ITS SOCALLED HOBBIT MICROPROCESSOR DESIGNED SPECIFICALLY FOR PERSONAL COMMUNICATORS AND HAS EVEN SIGNED ON JAPAN'S NEC TO HELP MANUFACTURE IT SIMILARLY APPLE COMPUTER INC RECENTLY INTRODUCED ITS NEWTON MESSAGEPAD WHICH USES A MICROPROCESSOR DESIGNED BY ADVANCED RISC MACHINES LTD OF BRITAIN INTEL AND MOTOROLA TOO ARE PLANNING CHIPS FOR THE PERSONALCOMMUNICATOR MARKET SUCH COMPETITION MAY BE ONE REASON THAT FEW OTHER JAPANESE COMPANIES SEEM TO BE FOLLOWING HITACHI'S ATTEMPT TO BREAK OUT OF THE PACK NEC AND TOSHIBA BOTH SAY THEY'RE CONTENT TO DEVELOP A NEW LINE OF CHIPS WITH MIPS TECHNOLOGIES WHILE FUJITSU INTENDS TO PUSH ONWARD WITH ITS LINE OF SPARC CHIPS SOME ANALYSTS THINK THOSE OTHER JAPANESE COMPANIES PROBABLY HAVE THE RIGHT IDEA HITACHI IS PROBABLY MAKING A MISTAKE IN REPOSITIONING THIS CHIP SAYS STEVEN MYERS AN ANALYST WITH JARDINE FLEMING SECURITIES LTD HITACHI WOULD BE BETTER OFF ADAPTING ITS HEWLETTPACKARD CHIPS FOR PERSONAL COMMUNICATORS HE SAYS SO THAT THE COMMUNICATORS WOULD REMAIN COMPATIBLE WITH HITACHI'S OTHER COMPUTERS THIS SOUNDS LIKE A HITACHI SEMICONDUCTOR DIVISION STRATEGY RATHER THAN A TOPDOWN SATISFYTHEUSER STRATEGY HE SAYS 9309150031 930915 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB DEMOCRATS ARE SALIVATING RIGHT NOW AND THERE'S A SIMPLE EXPLANATION HEALTH CARE IS FINALLY ON THE PLATE THIS IS THE ISSUE THAT MANY DEMOCRATS THINK HOLDS THE GREATEST POTENTIAL FOR THEM MAYBE EVEN THE POSSIBILITY OF LOCKING UP MIDDLECLASS LOYALTIES FOR A GENERATION TO COME MUCH AS FRANKLIN ROOSEVELT DID WITH SOCIAL SECURITY IN THEORY THESE DEMOCRATS ARE RIGHT BUT THE REALITY IS THAT ON SEVERAL COUNTS THE COMING CLINTON HEALTH PLAN HAS THE POTENTIAL TO EXPLODE IN THE PARTY'S FACE THAT'S WHY BOTH THE BROAD STROKES OF THE PLAN AND THE WAY THOSE BROAD STROKES ARE IMMEDIATELY PERCEIVED ARE CRUCIAL IT'S NEARLY CERTAIN THAT SOMETIME NEXT YEAR CONGRESS WILL PASS SOMETHING CALLED A HEALTHCARE REFORM PLAN THAT WILL BE DIFFERENT FROM THE ONE MR CLINTON UNVEILS NEXT WEEK BOTH DEMOCRATS AND REPUBLICANS WILL HAVE HELPED SHAPE THE FINAL PRODUCT THE PRINCIPAL MISSION FOR MR CLINTON IS TO CONVINCE THE PUBLIC THAT HE CRAFTED A REASONABLE AND WORKABLE PLAN THAT DREW THE CONTOURS FOR THIS NEW HEALTH SYSTEM VOTERS WANT TO THINK MR CLINTON AND HIS PARTY CAN DO THAT CELINDA LAKE A DEMOCRATIC POLLSTER WHO HAS DONE EXTENSIVE RESEARCH ON HEALTH CARE SAYS HER SURVEYS GIVE DEMOCRATS A 4050 PERCENTAGEPOINT ADVANTAGE OVER REPUBLICANS ON THE QUESTION OF WHO WOULD DO A BETTER JOB FIXING THE SYSTEM AFTER HAVING DANCED AROUND THE PROBLEM OF SOARING HEALTH COSTS FOR A DECADE REPUBLICANS HAVE LOW CREDIBILITY ON THE ISSUE ON TOP OF THOSE BUILTIN ADVANTAGES DEMOCRATS ARE DROOLING OVER HEALTH CARE BECAUSE IT CONNECTS TO PEOPLE'S LIVES AS FEW ISSUES DO AFTER MONTHS OF SELLING THE CASTOR OIL OF DEFICIT CUTS AND TAX INCREASES AND WEEKS OF HEARING ROSS PEROT BERATE THEM OVER A NORTH AMERICAN TRADE AGREEMENT MOST IN THEIR PARTY DON'T EVEN LIKE DEMOCRATIC LEADERS FINALLY ARE GETTING TO PUSH AN ISSUE THEY FEEL GOOD ABOUT THE BUDGET WAS THE RIGHT THING TO DO THE RIGHT VALUES BUT IT DIDN'T REALLY DELIVER ANYTHING CONCRETE TO PEOPLE SAYS STANLEY GREENBERG THE PRESIDENT'S POLLSTER I THINK HEALTH CARE IS VERY TANGIBLE AND WHILE MANY IN THE POLITICALLY VITAL MIDDLE CLASS ARE SUPERFICIALLY SATISFIED WITH THEIR HEALTH COVERAGE THEIR FEELINGS OF INSECURITY OVER COSTS AND THE FUTURE OF THEIR COVERAGE ARE REAL DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM IS GEARING UP THE PARTY'S APPARATUS TO CONVINCE THE PUBLIC THAT DEMOCRATS CAN CURE THOSE INSECURITIES SO THE POTENTIAL FOR A HOME RUN IS THERE HANGING TANTALIZINGLY BEFORE MR CLINTON BUT THAT DOESN'T MEAN THE MIDDLE CLASS WILL BUY INTO HIS PLAN IT'S BIG COMPLICATED AND RISKY AND REPUBLICANS ALREADY THINK THEY HAVE IDENTIFIED ITS VULNERABILITIES IN THE NEXT FEW WEEKS THESE ARE THE COUNTS ON WHICH THEY WILL ATTACK RUBE GOLDBERG WAS HERE THE SHEER COMPLEXITY OF THE CLINTON PLAN IS ONE OF ITS GREAT LIABILITIES OPENING THE WAY FOR REPUBLICANS TO ARGUE THAT ANY GOVERNMENT SCHEME THIS BIG WILL INEVITABLY BE TOO EXPENSIVE AND UNWORKABLE BECAUSE MOST PEOPLE THINK THE PROBLEM WITH THE CURRENT HEALTH SYSTEM IS THAT IT IS CUMBERSOME AND BUREAUCRATIC THEY WON'T BUY INTO A NEW SYSTEM THAT THEY SENSE SUFFERS THE SAME FLAWS THAT PROBLEM WILL BE TELLING UNLESS THE CLINTON TEAM FINDS A WAY TO EXPLAIN ITS APPROACH IN CLEAR TERMS JOBS JOBS JOBS THE LINCHPIN OF THE CLINTON APPROACH IS A MANDATE THAT EMPLOYERS PAY MUCH OF THE COST OF INSURANCE PREMIUMS FOR THEIR EMPLOYEES THE MOST FREQUENTLY HEARD ATTACK WILL BE THAT THIS WILL TRANSLATE DIRECTLY INTO WORKERS LOPPED OFF PAYROLLS THE CLINTON CHALLENGE CONVINCE PEOPLE IMMEDIATELY THAT THE CHANGE AT MOST COMPANIES WON'T BE AS BIG AS IT SOUNDS AND THAT GOVERNMENT SUBSIDIES WILL GET THE SMALLEST BUSINESSES OVER THE HUMP WE HAVE TO BE CLEAR THAT EVEN MOST SMALL BUSINESSES WON'T BE PAYING MORE SAYS GEORGE STEPHANOPOULOS A SENIOR CLINTON ADVISER WHAT MAKES YOU THINK WE CAN AFFORD A CADILLAC THE STANDARD PACKAGE OF BENEFITS THAT EVERYONE WILL BE GUARANTEED UNDER THE CLINTON PLAN IS GENEROUS SIMPLY PUT THE INSTANT REACTION OF SOME GOP LAWMAKERS AFTER BEING BRIEFED ON THE PLAN WAS IT'S TOO RICH WE CAN'T AFFORD IT THAT REFRAIN WILL BE HEARD MUCH MORE IN WEEKS AHEAD TAKE A NUMBER THE CLINTON PLAN'S IMPOSITION OF CAPS ON INSURANCE PREMIUMS COMBINED WITH ITS CALL TO SQUEEZE 238 BILLION OUT OF THE PROJECTED COSTS OF MEDICARE AND MEDICAID BY THE END OF THE DECADE WILL LEAD DIRECTLY TO CHARGES THAT HEALTH CARE WILL BE RATIONED TO FIT UNDER THE NEW COST CONTROLS THERE WILL BE NO MORE EXPLOSIVE IMAGE IN THE COMING DEBATE THAN THE ONE OF PEOPLE STANDING IN LINE TO SEE A DOCTOR THE IMAGE ALREADY IS BEING PAINTED BY REPUBLICAN ARTISTS NONE OF THESE ARGUMENTS ARE UNREASONABLE AND WHILE MR CLINTON HARDLY HAS TO SELL PEOPLE ON ALL THE DETAILS OF HIS PLAN HIS OVERALL CREDIBILITY RIDES ON HIS ABILITY TO CLEAR THESE BASIC HURDLES 9309150030 930915 FINANCING BUSINESS CORRPRO COS CORRPRO COS SAID IT REGISTERED AN INITIAL PUBLIC OFFERING OF 18 MILLION COMMON SHARES AT AN EXPECTED PRICE OF 10 TO 12 EACH OF THE SHARES REGISTERED 1655675 WILL BE OFFERED BY THE COMPANY AND 144325 BY A SHAREHOLDER CORRPRO HAS GRANTED ITS UNDERWRITERS NATWEST SECURITIES LTD AND MCDONALD & CO SECURITIES A 30DAY OPTION TO PURCHASE AS MANY AS 270000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS PROCEEDS TO THE MEDINA OHIO COMPANY WOULD BE USED TO REPAY LONGTERM DEBT AND FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL AND ACQUISITIONS CORRPRO SUPPLIES CORROSIONCONTROL ENGINEERING SERVICES AND EQUIPMENT TO THE CONSTRUCTION AND ENERGY MARKETS THE COMPANY SAID IT IS A LEADER IN CATHODIC PROTECTION SYSTEMS USING CONSTANT LOWLEVEL ELECTRICAL CURRENTS TO PROTECT AGAINST CORROSION CORRPRO HAS APPLIED TO TRADE ITS COMMON STOCK ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL CO 9309150029 930915 HOUSE VOTES 183 BILLION TO FUND RESOLUTION TRUST WASHINGTON THE HOUSE APPROVED 183 BILLION TO FUND THE RESOLUTION TRUST CORP ENDING 18 MONTHS OF POLITICAL WRANGLING OVER HOW TO COMPLETE THE UNPOPULAR AND COSTLY TASK OF DISMANTLING FAILED THRIFTS THE BILL THAT SQUEAKED BY ON A VOTE OF 214208 ALSO AUTHORIZES 8 BILLION TO HELP RECAPITALIZE THE SAVINGS ASSOCIATION INSURANCE FUND WHICH WILL PROTECT THRIFT DEPOSITS OF AS MUCH AS 100000 AFTER MARCH 31 1995 UNTIL THAT DATE FAILED THRIFTS WILL CONTINUE TO BE TAKEN OVER BY THE RTC THAT AGENCY WAS SUPPOSED TO STOP TAKING OVER FAILED THRIFTS AT THE END OF THIS MONTH BUT THE LEGISLATION WOULD EXTEND ITS AUTHORITY FOR ANOTHER 18 MONTHS THE HOUSE BILL NOW MUST BE RECONCILED WITH A SIMILAR BUT POTENTIALLY MORE EXPENSIVE BILL THE SENATE PASSED IN MAY 9309150028 930915 MARKETING & MEDIA MICHAEL MILKEN AGREES TO WRITE AUTOBIOGRAPHY NEW YORK MICHAEL MILKEN HAS DECIDED TO TELL HIS SIDE OF THE STORY THE ONCE HIGHFLYING JUNKBOND KING WHO WENT TO PRISON FOR SIX SECURITIESRELATED FELONIES HAS AGREED TO WRITE HIS AUTOBIOGRAPHY FOR HYPERION A UNIT OF WALT DISNEY CO TERMS WEREN'T DISCLOSED BUT OTHER PUBLISHERS SAY THE ADVANCE WAS ABOUT 1 MILLION THE PUBLISHER SAID MR MILKEN IS GIVING TO CHARITY ALL OF THE MONEY HE RECEIVES WHILE THE BOOK IS SOMETHING OF A RISK FOR HYPERION AND SEVERAL OTHER PUBLISHERS DECLINED TO BID ON THE BOOK OUT OF FEAR ITS APPEAL WOULD BE LIMITED HYPERION HAS SIGNED A VERY SUCCESSFUL COWRITER FOR THE BOOK WILLIAM NOVAK COWROTE THE AUTOBIOGRAPHY OF LEE IACOCCA WHICH WAS HUGELY SUCCESSFUL AS WELL AS BOOKS ABOUT OLIVER NORTH EARVIN MAGIC JOHNSON AND THOMAS P TIP O'NEILL JR HYPERION SAID THE BOOK DUE IN 1995 WILL BE PERSONALLY REVEALING AND FINANCIALLY INSIGHTFUL DETAILING THE DEALS MILKEN STRUCTURED AND THE PERSONALITIES INVOLVED HIS PROSECUTION AND IMPRISONMENT AND FINALLY HIS OUTLOOK ON THE ECONOMIC FUTURE MR MILKEN SAID HE INTENDS TO SPEAK TO ISSUES OPENLY AND DIRECTLY AND HOPE THAT MY FRANK DISCUSSION WILL ADDRESS SOME OF THE PITFALLS I ENCOUNTERED AS A RESULT OF LIVING IN A PERIOD WHEN PERCEPTION BECAME REALITY 9309150027 930915 CREDIT RATINGS MOODY'S RAISES RATING ON ABOUT 12 BILLION OF TIME WARNER DEBT NEW YORK MOODY'S INVESTORS SERVICE INC BOOSTED TIME WARNER INC'S DEBT RATING ONE NOTCH LEAVING IT ONLY ONE STEP SHY OF INVESTMENT QUALITY THE RATING SERVICE HOWEVER LIFTED THE RATING TO INVESTMENT GRADE ON THE DEBT OF THE ENTERTAINMENT GIANT'S SHOW BUSINESS AND CABLE TV UNIT TIME WARNER ENTERTAINMENT CO MOODY'S CITED THE EXPECTED INVESTMENT OF 25 BILLION IN TIME WARNER ENTERTAINMENT BY U S WEST INC AND ANTICIPATED INCREASES IN REVENUE AND CASH FLOW AT TIME WARNER THE RATINGS COVER SOME 12 BILLION OF DEBT INCLUDING BANK LOANS THE TWO HAVE COMBINED DEBT OF 16 BILLION THE COMPANY PILED UP ITS DEBT LOAD IN 1989 DURING ITS FORMATION THROUGH A COMBINATION OF TIME INC AND WARNER COMMUNICATIONS INC LAST YEAR TIME WARNER SHIFTED ITS WARNER BROS STUDIO HBO PAYTV AND CABLETV OPERATIONS INTO TIME WARNER ENTERTAINMENT AND HAS SOLD OFF OR AGREED TO SELL OFF ALMOST 37 OF IT TO STRATEGIC PARTNERS THE PROCEEDS 35 BILLION WERE MOSTLY EARMARKED FOR DEBT REPAYMENT 9309150026 930915 ALLSTAR ANALYSTS 1993 SURVEY HOUSEHOLD PRODUCTS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL ALLSTAR ANALYSTS WHO FOLLOW THE HOUSEHOLD PRODUCTS INDUSTRY ARE UNENTHUSIASTIC ABOUT THEIR STOCK GROUP FOR THE TIME BEING STILL THEY SEE A FEW GOOD BUYS ONE COMPANY THAT ALL THREE OF THE TOP STOCK PICKERS LIKE IS DURACELL INTERNATIONAL THE ALKALINE BATTERY MAKER BASED IN BETHEL CONN LYNNE R HYMAN OF FIRST BOSTON DEEPAK D RAJ OF MERRILL LYNCH AND CONSTANCE M MANEATY OF BEAR STEARNS ALL RATE IT A BUY CITING ITS GROWTH POTENTIAL BOTH IN THE US AND ABROAD DURACELL IS ONE OF THE FEW COMPANIES IN THE CONSUMER AREA WHERE THE UNDERLYING DEMAND IS GROWING FUELED BY GROWTH IN CONSUMER DEVICES CHILDREN AND ADULT TOYS SAYS MS HYMAN MS HYMAN WAS COOL TO MOST STOCKS IN HER GROUP DURING 1992 BUT CHALKED UP A NICE GAIN IN THE SECOND HALF OF THE YEAR ON ECKO GROUP A MAKER OF KITCHEN DOODADS MR RAJ SNARED SECOND PLACE HELPED BY A GAIN IN COLGATEPALMOLIVE MS MANEATY ALSO CAUGHT THE RISE IN COLGATE BUT CAME IN A BIT LATER THAN MR RAJ TODAY THE ANALYSTS ARE SPLIT ON COLGATE WHICH MAKES COLGATE TOOTHPASTE AJAX CLEANSER AND FAB DETERGENT AMONG OTHER PRODUCTS MS HYMAN EXPRESSES CONCERNS ABOUT THE STOCK SAYING THAT EVEN THOUGH NEW YORKBASED COLGATE IS STRONG INTERNATIONALLY THAT ISN'T ENOUGH TO OFFSET THE FACT THAT ITS PRODUCTS AREN'T TOP MARKETSHARE PERFORMERS IN THE US AND EUROPE BUT MR RAJ AND MS MANEATY REMAIN COLGATE FANS MS MANEATY SAYS THAT WHILE THE US IS A MATURE MARKET FOR COLGATE THE COMPANY HAS TOP BRANDS IN DEVELOPING COUNTRIES PARTICULARLY IN ASIA AND LATIN AMERICA WHICH WILL SEE ECONOMIC GROWTH IN COMING YEARS BOTH MS HYMAN AND MR RAJ LIKE BOSTONBASED GILLETTE WHOSE CLOSESHAVING SENSOR RAZORS HAVE BEEN POPULAR ENOUGH TO PROTECT THE COMPANY FROM PRIVATELABEL ENCROACHMENT MS HYMAN SAYS GILLETTE'S BRAUN SMALLAPPLIANCE UNIT THOUGH CURRENTLY STYMIED BY SLUGGISH ECONOMIES IN EUROPE AND JAPAN IS A WONDERFUL BUSINESS SHE SAYS BRAUN PLANS TO LAUNCH SEVERAL PRODUCTS IN THE FALL MR RAJ ALSO LIKES SUNBEAMOSTER OF WILMINGTON DEL FOR ITS STRONG SALES GROWTH AND HIGH MARKET SHARE IN ITS NICHES OUT OF FAVOR WITH MS MANEATY ARE COMPANIES THAT HAVE ONLY ONE OR TWO MAJOR PRODUCTS AND THUS LACK FALLBACK POSITIONS THESE INCLUDE HELENE CURTIS INDUSTRIES CHURCH & DWIGHT AND TWO PRIVATELABEL MAKERS PARAGON TRADE BRANDS AND AMERICAN SAFETY RAZOR WITH PRICE WARS GOING ON IN THE US AND SOME OF THE MAJOR CONSUMER PRODUCTS COMPANIES LOWERING PRICES IT'S GOING TO BE VERY DIFFICULT FOR ONEPRODUCT COMPANIES TO SHOW SUPERIOR SALES AND EARNINGS GROWTH SHE SAYS THE ANALYSTS ARE MONITORING BUT NOT RECOMMENDING PROCTER & GAMBLE THE GIANT CONSUMER PRODUCT CONCERN THAT IN JULY ANNOUNCED PLANS TO ELIMINATE 13000 JOBS AND CLOSE 30 PLANTS ALL THREE BELIEVE THE COST CUTS WILL POSITION CINCINNATIBASED P&G WELL FOR LONGTERM GROWTH BUT IN THE NEAR TERM THEY SAY THE COMPANY FACES INTENSE COMPETITION FROM OTHER BRANDS AND PRIVATELABEL KNOCKOFFS THE ANALYSTS ARE IN AGREEMENT ON ONE THING CONSUMER PRODUCTS STOCKS PALE WHEN COMPARED WITH CYCLICAL STOCKS I'M NEGATIVE ON THE INDUSTRY MS HYMAN SAYS WE MAY BE GETTING CLOSE TO THE BOTTOM BUT I DON'T WANT TO INVEST IN THEM YET SAYS MR RAJ OUR GROUP WILL NOT OUTPERFORM THE MARKET IN THE NEAR FUTURE IT'S GOING TO BE OVERSHADOWED BY GROWTH IN CYCLICAL COMPANIES 9309150025 930915 THE BATTLE OVER NAFTA ILLUSORY BARGAIN SOME US COMPANIES FIND MEXICAN WORKERS NOT SO CHEAP AFTER ALL LOW PRODUCTIVITY AND A HOST OF OTHER WOES UNDERCUT AMERICANS' NAFTA FEARS WHY A COIL FIRM WENT HOME BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL BRISTOL CONN KEITH GIBSON HEARD THE GIANT SUCKING SOUND OF CHEAP MEXICAN WAGES FOUR YEARS AGO AND HEADED SOUTH HE SHUT DOWN A FACTORY ON THE CONNECTICUT COAST AND OPENED ONE IN CIUDAD JUAREZ WHERE HE COULD PAY MEXICANS ONETHIRD THE WAGE RATES HE WAS PAYING AMERICANS ALL THE FIGURES POINTED OUT WE SHOULD MAKE A KILLING HE SAYS INSTEAD THE COMPANY HE RUNS QUALITY COILS INC NEARLY GOT KILLED THE BRISTOLBASED MAKER OF ELECTROMAGNETIC COILS LOST MONEY REGULARLY IN MEXICO HE SAYS BECAUSE OF HIGH ABSENTEEISM LOW PRODUCTIVITY AND PROBLEMS WITH LONGDISTANCE MANAGEMENT WORN DOWN MR GIBSON PULLED THE PLUG ON THE MEXICAN OPERATION LAST APRIL MOVED THE FACTORY BACK TO STONINGTON CONN AND REHIRED SOME OF THE 30 PEOPLE LAID OFF IN 1989 HERE'S WHAT HE LEARNED I CAN HIRE ONE PERSON IN CONNECTICUT FOR WHAT THREE WERE DOING IN JUAREZ THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH FACES TOUGH OPPOSITION IN CONGRESS RESTS LARGELY ON THE QUESTION WILL THE TRADELIBERALIZATION PACT COST THE US JOBS ROSS PEROT ARGUES THAT CHEAP MEXICAN WAGES WILL SUCK MILLIONS OF HIGHPAYING US JOBS ACROSS THE BORDER LIKE A GIANT VACUUM REINFORCING MANY WORKERS' DEEP FEARS THAT THEY ARE BEING SOLD OUT BY MULTINATIONAL COMPANIES UNION ACTIVISTS COMPLAIN THAT THEY CAN'T POSSIBLY COMPETE WITH THE 60CENTANHOUR MINIMUM WAGE IN MEXICO TEAMSTER RALLIES CHANT 4 A DAY/NO WAY BUT THE EXPERIENCE IN MEXICO OF COMPANIES SUCH AS QUALITY COILS SUGGESTS THAT THE PEROT ARGUMENT IS SIMPLISTIC AND PROBABLY WRONG IT OVERLOOKS THE MANY FACTORS OTHER THAN WAGE LEVELS THAT ACTUALLY DRIVE BUSINESS DECISIONS FOR ONE THING WAGES IN MEXICO AREN'T NEARLY AS LOW AS MANY PEOPLE BELIEVE AND LOW MEXICAN PRODUCTIVITY OFTEN ERASES MUCH OF THE WAGE ADVANTAGE ANYWAY MOREOVER A HOST OF PROBLEMS RANGING FROM CONGESTED ROADS TO CORRUPT JUDGES RUN UP OPERATING COSTS AND FEW COMPANIES BASE PLANT LOCATIONS ON A SIMPLE CALCULATION OF WAGE DIFFERENTIALS FOR MOST US MANUFACTURERS THE COST OF LABOR IS LESS IMPORTANT THAN SUCH FACTORS AS THE SKILLS OF THE WORK FORCE THE QUALITY OF TRANSPORTATION AND THE ACCESS TO TECHNOLOGY MEANWHILE MEXICO HAS BECOME A VAST MARKET FOR USMADE GOODS CREATING HUNDREDS OF THOUSANDS OF JOBS AT HOME THE NAFTA TARIFF REDUCTIONS AND INVESTMENT PROTECTION SHOULD ACCELERATE THOSE GAINS MOST ECONOMISTS PREDICT SWAMPING ANY LOSS OF JOBS FROM FACTORIES HEADING SOUTH THE SUCKING SOUND YOU HEAR IS 85 MILLION MEXICANS SUCKING ON US STRAWS DRINKING THEIR US COLAS AND EATING THEIR HAMBURGUESAS FROM MCDONALD'S SAYS DON NIBBE PUBLISHER OF TWIN PLANT NEWS A MAGAZINE IN EL PASO ABOUT MANAGING BUSINESSES IN MEXICO TO HELP EXPORTS ALONG THE COMMERCE DEPARTMENT PLANS A PROGRAM CALLED EXPORT MEXICO WHICH WILL COUNSEL INDUSTRIES ON HOW TO EXPAND SALES TO MEXICO MEXICO BUYS 40 BILLION WORTH OF AMERICAN GOODS EACH YEAR AND WE WANT TO TEACH COMPANIES HOW TO DO MORE BUSINESS SAYS COMMERCE SECRETARY RON BROWN SOMETIMES THE JOB VACUUM PULLS NORTH TOO MCILHENNY CO SET UP A TABASCO FACTORY IN MEXICO CITY IN THE 1950S BECAUSE MEXICO'S HIGH TARIFFS AND STIFF REGULATIONS BLOCKED IMPORTS AND MADE THAT THE ONLY WAY TO SELL THERE BUT MEXICO DISMANTLED ITS IMPORT BARRIERS DURING THE PAST DECADE SO MCILHENNY SHUT DOWN ITS MEXICAN OPERATIONS IN 1989 EXPANDED IN AVERY ISLAND LA AND STARTED EXPORTING TO MEXICO INSTEAD THE MACHINERY IN LOUISIANA COULD BOTTLE THE HOT SAUCE FOUR TIMES AS QUICKLY AS IN MEXICO CITY WIPING OUT ANY LABOR ADVANTAGE SAYS CARLOS MALESPIN THE COMPANY'S VICE PRESIDENT INTERNATIONAL MOREOVER THE COMPANY COULD KEEP BETTER TABS ON QUALITY AT ITS HOME BASE THOMSON SA THE FRENCH ELECTRONICS COMPANY THAT BOUGHT RCA'S CONSUMERELECTRONICS BUSINESS MAY FOLLOW SUIT JOSEPH DONAHUE SENIOR VICE PRESIDENT OF THOMSON'S US SUBSIDIARY SAYS RCA HAS PRODUCED PICTURE TUBES IN MEXICO CITY FOR DECADES TO SELL LOCALLY BECAUSE OF MEXICAN IMPORT RESTRICTIONS IF THE BORDER OPENS UP THERE'S NO REASON FOR THE SMALL AND INEFFICIENT PLANT HE SAYS THOMSON WOULD PROBABLY RETAIN SEPARATE TVCOMPONENT MANUFACTURING IN JUAREZ HOWEVER HAWORTH INC A BIG OFFICEFURNITURE MAKER IN HOLLAND MICH WEIGHED THE FULL COSTS OF MEXICAN PRODUCTION TWICE IN RECENT YEARS AND BOTH TIMES CALCULATED THAT IT COULD MANUFACTURE MORE CHEAPLY IN MICHIGAN IN 1989 RICHARD BERRETH THE COMPANY'S VICE PRESIDENT FOR MANUFACTURING FLEW TO NOGALES TO SEE WHETHER HAWORTH SHOULD BUILD A PLANT THERE TO PRODUCE OFFICE FURNITURE FOR THE BURGEONING MEXICAN MARKET AND TO ESCAPE 15 MEXICAN TARIFFS EVEN IF HE COULD PAY MEXICANS ONLY 1 AN HOUR HE REALIZED HE COULD STILL PRODUCE FURNITURE 25 MORE CHEAPLY IN MICHIGAN HAWORTH WOULD HAVE HAD TO SPEND SEVERAL MILLION DOLLARS BUILDING THE NOGALES FACTORY STAFFING IT AND TRAINING THE WORKERS LATER DURING PRODUCTION IT WOULD RUN UP STEEP BILLS SHIPPING PARTS BACK AND FORTH TO MEXICO LABOR SAVINGS COULDN'T COME CLOSE TO COVERING THOSE EXPENSES THEN WHEN DESIGNING NEW OFFICE EQUIPMENT IN 1991 HAWORTH FACED ANOTHER CHOICE BUY CERTAIN ELECTRICAL SYSTEMS FROM A REGULAR SUPPLIER THAT WOULD PRODUCE THEM IN MEXICO OR MAKE THE COMPONENTS AT A HAWORTH FACTORY IN MICHIGAN HAWORTH CALCULATED THAT IT COULD MAKE THEM FOR 20 LESS THAN THE COST OF BUYING THEM IN MEXICO IN MICHIGAN HAWORTH COULD PRODUCE THE SYSTEMS IN THREE DAYS AND THUS HOLD DOWN INVENTORIES AND MEET CUSTOMER DEMANDS FOR QUICK DELIVERY HIS MEXICOBASED SUPPLIER COULDN'T DO BETTER THAN TWO WEEKS IF YOU CHASE CHEAP LABOR YOU MAY REGRET IT MR BERRETH SAYS SO FAR HAWORTH HAS ADDED 35 JOBS IN MICHIGAN TO PRODUCE THE ELECTRICAL SYSTEMS THE FEAR OF A BIG JOB LOSS TO MEXICO STEMS FROM THE PROXIMITY OF MEXICAN CITIES TO IMPORTANT US MARKETS THE HUGE POOL OF UNDEREMPLOYED MEXICANS AND THEIR STARTLINGLY LOW WAGES LABOR DEPARTMENT FIGURES ESTIMATE THE AVERAGE MEXICAN MANUFACTURING WAGE IN 1992 AT 235 AN HOUR ONESEVENTH THE US LEVEL COMMON SENSE WOULD INDICATE THAT EMPLOYERS WOULD JUMP TO TAKE ADVANTAGE OF THAT GAP AND SOME LOWWAGE US INDUSTRIES SUCH AS APPAREL ARE INDEED LIKELY TO SHIFT PRODUCTION THE COST SAVINGS ARE SO GREAT THAT THEY ARE THE OVERWHELMING FACTOR FOR COMPANIES CHOOSING A PRODUCTION SITE SAYS PAT CHOATE WHO COAUTHORED AN ANTINAFTA BOOK WITH MR PEROT HOWEVER THE APPAREL INDUSTRY IS LOSING JOBS ANYWAY TO VARIOUS UNDERDEVELOPED NATIONS SINCE 1965 SEVERAL THOUSAND FACTORIES HAVE SET UP JUST SOUTH OF THE US BORDER TO TAKE ADVANTAGE OF TAX BREAKS AND LOW WAGES BUT IN RECENT YEARS AS US EXPORTS TO MEXICO HAVE SURGED THOSE SOCALLED MAQUILADORA FACTORIES HAVE ACCOUNTED FOR AN EVERSMALLER PERCENTAGE OF USMEXICAN TRADE AND GARY HUFBAUER AND JEFFREY SCHOTT TWO TRADE ECONOMISTS AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS CONTEND THAT DECADES OF FREE TRADE WITH ANOTHER LOWWAGE HISPANIC AREA NEAR THE US PUERTO RICO DIDN'T SIPHON US JOBS BETWEEN 1970 AND 1990 THEY SAY MANUFACTURING JOBS THERE ROSE ONLY TO 160000 FROM 132000 AND THE MANUFACTURING SECTOR DECLINED AS A SHARE OF THE WORK FORCE BUT LIKE A FABULIST LATIN AMERICAN NOVEL THE REALITIES OF MEXICO HAVE BEEN ENVELOPED BY MYTH ITS LABOR COSTS ARE SURPRISINGLY HIGH BECAUSE OF BENEFITS REQUIRED BY LAW OR LABOR AGREEMENTS HEWITT ASSOCIATES A CONSULTING FIRM IN SUBURBAN CHICAGO TRACKS 103 COLLECTIVE WAGE AGREEMENTS TO CALCULATE MEXICAN WAGES INCLUDING THE FULL RANGE OF FRINGE BENEFITS CHRISTMAS AND VACATION BONUSES PROFIT SHARING GROCERY ALLOWANCES SAVINGS PLANS AND FREE LUNCHES HEWITT ESTIMATES THAT MEXICAN PRODUCTION WORKERS ALONG THE US BORDER ARE AVERAGING 339 AN HOUR IN THE MORE HIGHLY UNIONIZED INTERIOR OF MEXICO THEY AVERAGE 505 AS FOR SENIOR EXECUTIVES SALARIES IN MEXICO CITY AND MONTERREY CAN TOP THOSE IN NEW YORK OR LOS ANGELES ARTURO FISHER A MEXICAN CONSULTANT AT HEWITT SAYS THAT MEXICAN MANAGERS WITH 15 YEARS OF EXPERIENCE INCLUDING A STINT AT A US MULTINATIONAL COMMAND ANNUAL SALARIES OF 175000 AND THAT 500000 ISN'T UNCOMMON THE BIGGEST PROBLEM CONCERNS PRODUCTIVITY DANIEL OKS A WORLD BANK ECONOMIST CALCULATES THAT US WAGES ARE 525 TIMES HIGHER THAN MEXICO'S BUT THAT MEXICAN WORKERS ARE ABOUT ONEFIFTH AS PRODUCTIVE AS AMERICANS BECAUSE OF MUCH OUTDATED MACHINERY CLOGGED TRANSPORTATION INEFFECTIVE MANAGEMENT AND POOR EDUCATION THE RESULT US WAGES ARE JUST 26 HIGHER THAN MEXICO'S ON AVERAGE AFTER FACTORING IN PRODUCTIVITY MR OKS WORRIES ABOUT THE FALLOUT FROM NAFTA BUT HIS FEARS DON'T TRACK MR PEROT'S HE FRETS THAT MEXICO'S MANUFACTURERS WOULDN'T BE ABLE TO COMPETE WITH HIGHERQUALITY US COMPANIES IF TRADE BARRIERS ARE PHASED OUT SOME US COMPANIES ESPECIALLY LARGE ONES BRING THEIR MEXICAN OPERATIONS UP TO US STANDARDS FORD MOTOR CO SAYS ITS HERMOSILLO PLANT RANKS IN THE TOP THIRD OF AUTOINDUSTRY PRODUCTIVITY BUT FORD LAVISHED FAR MORE ATTENTION ON THE PLANT THAN MOST COMPANIES CAN AFFORD BUSING WORKERS SENDING SEVERAL HUNDRED ABROAD FOR TRAINING AND LOBBYING THE MEXICAN STATE GOVERNMENT TO BUILD HOUSING FOR SMALLER COMPANIES THAT LEVEL OF EFFORT IS TOO MUCH QUALITY COILS WITH 10 MILLION IN ANNUAL SALES HAD FIGURED ON BIG COST SAVINGS FOUR YEARS AGO WHEN IT CLOSED THE STONINGTON PLANT AS WITH MANY SMALL BUSINESSES FIRST VENTURING INTO MEXICO QUALITY COILS CONTRACTED WITH A COMPANY THAT PROVIDED FACTORY SPACE IN JUAREZ UTILITY SERVICES AND LABORERS AT AN ALLINCLUSIVE RATE OF 335 AN HOUR WITH ITS CONNECTICUT PRODUCTION WORKERS MAKING 10 AN HOUR WITH BENEFITS AND LABOR CONSTITUTING 30 OF THE COST OF A COIL THE POTENTIAL SAVINGS SEEMED IMMENSE BUT PROBLEMS SURFACED QUICKLY MANY QUALITY COILS CUSTOMERS SEEKING TO KEEP THEIR INVENTORIES LEAN EXPECTED THE COMPANY TO FILL A VARIETY OF SMALL ORDERS FOR SEVERAL THOUSAND COILS EACH WITHIN 30 DAYS BUT THE MEXICAN OPERATIONS COULDN'T ADAPT WELL TO SUCH FLEXIBLEMANUFACTURING REQUIREMENTS INSTEAD THEY COULD PRODUCE ONLY LONG RUNS OF THE SIMPLEST PRODUCTS WHEN YOU'RE TALKING ABOUT SHORT RUNS THE MATERIALSSUPPLY PROBLEMS GET UNMANAGEABLE IN MEXICO SAYS NED DOUGHERTY PRESIDENT OF PENTEX ENTERPRISES INC THE EL PASO TEXAS COMPANY THAT SET UP QUALITY COILS' JUAREZ FACILITY AND EVEN ON COILS THAT COULD BE PRODUCED IN MEXICO PRODUCTION FELL BELOW US STANDARDS SHIPMENTS OF COMPONENTS WOULD SIT AT THE BORDER FOR WEEKS DELAYING PRODUCTION AFTER SOME CHRISTMAS HOLIDAYS WHEN HOMESICK WORKERS WENT BACK TO THE INTERIOR OF MEXICO NEARLY HALF THE PLANT'S 50 EMPLOYEES WOULDN'T RETURN WE WERE CONTINUALLY RETRAINING MR GIBSON SAYS THAT DID AWAY WITH ANY PRODUCTIVITY GAINS UNDER NAFTA HOWEVER THIS PROBLEM COULD DIMINISH BECAUSE MANY SUCH PLANTS WOULD BE LOCATED AWAY FROM THE BORDER AND NEAR THE WORKERS' HOMES FOR A TIME MR GIBSON WAS BEWILDERED BY THE PROBLEMS IN JUAREZ HE SAYS HE FLEW THERE TO TRY TO MEASURE HOW MANY COILS A WORKER COULD PRODUCE AND HE FOUND THAT THE NUMBER WAS ROUGHLY COMPARABLE TO THAT IN CONNECTICUT BUT SOMEHOW THE MEXICAN OPERATIONS WERE LOSING 100000 TO 150000 A YEAR ON SALES OF 750000 IF LABOR WAS CHEAPER AND PRODUCTION COMPARABLE WHY THE LOSSES MR GIBSON SAYS THAT HE SLOWLY REALIZED THAT THE JUAREZ WORKERS WERE PUMPING UP PRODUCTION WHENEVER HE OR OTHER CONNECTICUT MANAGERS WERE IN TOWN TO CONFIRM HIS SUSPICION HE SAYS MANAGERS WOULD PRETEND TO WATCH PRODUCTION IN ONE END OF THE PLANT WHILE KEEPING AN EYE ON OTHER WORKERS THEY NOTICED THAT THE MEXICAN WORKERS WERE PRODUCING AT HALF THE RATE OF THEIR AMERICAN COUNTERPARTS MANY OF WHOM HAD AT LEAST FIVE YEARS OF EXPERIENCE WINDING SOLDERING AND WRAPPING COILS MR GIBSON TRIED VARIOUS WAYS TO RAISE PRODUCTIVITY HE EVEN OFFERED WORKERS WHO EXCEEDED THEIR PRODUCTION QUOTAS COUPONS THAT COULD BE USED TO BUY FOOD IN LOCAL SUPERMARKETS BUT SUCH EFFORTS FLOPPED FINALLY A YEAR AGO MR GIBSON SAYS HE SET AN ULTIMATUM THE MEXICAN OPERATIONS MUST BE ABLE TO RUN 2000 COILS A WEEK THROUGH A MACHINE THAT WINDS COILS ON SPOOLS USING TWO WORKERS A STANDARD THE CONNECTICUT PLANT HAD MET FOR YEARS BUT HE SAYS THE MEXICAN PLANT RARELY MANAGED MORE THAN 1000 THE MEXICAN WORKERS WERE TAKING FAR LONGER TO SET UP THE MACHINE AND MAINTAIN IT SO IT WAS OPERATING FEWER HOURS EACH DAY FINALLY IN FRUSTRATION QUALITY COILS SHUT DOWN THE MEXICAN OPERATION IN APRIL AND REOPENED THE CONNECTICUT FACTORY RANDY SHORTS QUALITY COILS' MANAGER IN JUAREZ SAYS THAT THE MEXICAN WORKERS COULD MATCH THE PRODUCTIVITY IN CONNECTICUT AND HE BLAMES MR GIBSON FOR GIVING UP BUT MR GIBSON SAYS HE IS GLAD HE GOT OUT QUALITY COILS' COSTS FOR WAGES AND OVERHEAD WERE DUE TO INCREASE TO 538 AN HOUR THIS YEAR WITH JUAREZ PRODUCTIVITY OVERALL ONLY ONETHIRD OF CONNECTICUT'S HE FIGURES HE IS BETTER OFF HIRING WORKERS UP NORTH MARK GIBSON A VICE PRESIDENT SAYS THAT 538 AN HOUR TIMES THREE IS A HECK OF A LOT MORE THAN WE PAY IN CONNECTICUT IN STONINGTON KAREN CLARK LOOKS UP FOR A MOMENT FROM HER JOB WRAPPING SMALL COILS WITH PLASTIC TAPE FOUR YEARS AGO QUALITY COILS LAID HER OFF NOW SHE'S BACK ON THE PRODUCTION LINE PEOPLE SHOULD BE WORRIED ABOUT GOING TO MEXICO SHE SAYS THEN SHE QUICKLY TAPES ANOTHER COIL 9309150024 930915 WORKERS SUE ALLEGE KMART SPIED ON UNION ACTIVITIES A GROUP OF KMART CORP WAREHOUSE EMPLOYEES SUED THE COMPANY AND A CONSULTING FIRM FOR SPYING ON THEIR UNION AND OFFTHEJOB ACTIVITIES IN A SUIT FILED YESTERDAY IN STATE COURT IN COOK COUNTY ILL WORKERS SAID KMART VIOLATED THEIR RIGHT TO PRIVACY BY HIRING CONFIDENTIAL INVESTIGATIVE CONSULTANTS INC TO INFILTRATE THE MANTENO ILL WAREHOUSE WITH SPIES POSING AS KMART EMPLOYEES THE CONSULTING FIRM'S SURVEILLANCE REPORT WHICH WORKERS SAID THEY RECEIVED ANONYMOUSLY INCLUDED SUCH DETAILS AS EMPLOYEES' VIEWS ABOUT UNIONISM AND ONE WORKER'S OFFDUTY FISHING PLANS ACCORDING TO THE SUIT THE WAREHOUSE'S 500 WORKERS VOTED IN JULY TO JOIN THE TEAMSTERS UNION ONE OF ONLY TWO KMART WORK SITES SO FAR TO VOTE IN FAVOR OF UNIONIZING THEIR LAWYER TOM JOHNSON OF CHICAGO SAID AT LEAST SOME OF KMART'S ALLEGED INFORMATION GATHERING APPEARED TO BE IN RESPONSE TO UNION ORGANIZING THE TROY MICH DISCOUNT RETAILER RESPONDED THAT IT HIRED CONFIDENTIAL INVESTIGATIVE CONSULTANTS MONTHS BEFORE THE UNION ELECTION PROCESS BEGAN TO BREAK UP A THEFT RING AT THE WAREHOUSE A KMART SPOKESWOMAN CALLED ALLEGATIONS THAT THE COMPANY GATHERED PERSONAL INFORMATION RIDICULOUS 9309150023 930915 INTERNATIONAL ISRAELI POLITICS ASSIGNS OVERSIZED ROLE TO TINY PARTY IN DEBATE ON PEACE PACT BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV ISRAELI PRIME MINISTER YITZHAK RABIN RETURNED FROM WASHINGTON CARRYING A SIGNED PEACE AGREEMENT WITH THE PALESTINE LIBERATION ORGANIZATION NOW HE MUST PERSUADE THE ISRAELI PARLIAMENT TO APPROVE IT UNTIL RECENTLY THAT WASN'T EXPECTED TO BE A PROBLEM THE 62 MEMBERS OF MR RABIN'S RULING COALITION PLUS VOTES BY FIVE ARAB MEMBERS OF THE KNESSET WHOSE PARTIES AREN'T FORMALLY PART OF THE GOVERNMENT BUT SUPPORT IT GAVE THE PRIME MINISTER A CLEAR MAJORITY IN FAVOR OF THE PEACE PLAN RECOGNIZING THE PLO AND SETTING UP PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO THEN INTERIOR MINISTER ARYE DERI HEAD OF THE ULTRAORTHODOX SHAS PARTY ANNOUNCED HIS RESIGNATION OVER ALLEGATIONS OF CORRUPTION AND HINTED HE AND THE PARTY'S FIVE OTHER MEMBERS MIGHT LEAVE THE COALITION THE LOSS WOULD REDUCE MR RABIN'S SUPPORT TO 61 VOTES IN THE 120MEMBER KNESSET AND LEAVE HIM DEPENDENT ON THE ARAB LEGISLATORS TO WIN APPROVAL OF THE PACT SIGNED THIS WEEK IN WASHINGTON GETTING THIS AGREEMENT PASSED WITHOUT SHAS IS GOING TO BE VERY DIFFICULT SAYS ZVI ZOHAR DIRECTOR OF THE HARTMAN INSTITUTE'S CENTER FOR JEWISH LAW IN JERUSALEM WHILE 61 VOTES IS LEGALLY SUFFICIENT TO PASS THE AGREEMENT BOTH PSYCHOLOGICALLY AND SYMBOLICALLY IT'S IMPORTANT THAT A MAJORITY OF THE JEWISH PUBLIC IN ISRAEL BE SEEN TO SUPPORT THIS MOVE HAVING SHAS ON HIS SIDE IS VERY IMPORTANT TO RABIN THUS THE KEY TO THE TREATY'S PASSAGE NOW SEEMS TO LIE IN THE HANDS OF OVADIA YOSEF A 73YEAROLD RABBI WHO IS THE SPIRITUAL MENTOR OF SHAS AND AUTHOR OF MORE THAN 30 VOLUMES ON JEWISH RELIGIOUS LAW HE WILL DECIDE IF SHAS QUITS THE COALITION AND WHAT STAND THE PARTY TAKES ON THE PLO ACCORD WHILE ITS REPRESENTATION IN THE KNESSET IS SMALL SHAS'S DIVERSE BASE OF SUPPORT GIVE IT CONSIDERABLE POLITICAL INFLUENCE THE PARTY WAS FOUNDED IN 1983 BY DISAFFECTED RELIGIOUS SEPHARDIC JEWS WHO IMMIGRATED TO ISRAEL FROM NORTH AFRICA AND THE ARAB NATIONS AND ENCOUNTERED WIDESPREAD DISCRIMINATION IN THE EUROPEANDOMINATED ULTRAORTHODOX WORLD HERE BUT SHAS'S MESSAGE OF ETHNIC PRIDE AND REDRESSING SOCIAL DISCRIMINATION QUICKLY ATTRACTED A FOLLOWING OUTSIDE THE ORTHODOX COMMUNITY PARTY LEADERS STILL REMAIN RABBIS GARBED IN BLACK HATS BUT THE BULK OF THE RANKANDFILE ARE NONORTHODOX SEPHARDIM WHO SERVE IN THE ARMY DON'T STRICTLY FOLLOW RELIGIOUS LAWS AND IDENTIFY WITH THE ZIONIST MOVEMENT THIS MIXTURE HAS RESULTED IN A MORE FLEXIBLE POLITICAL LINE THAN THAT ESPOUSED BY THE PARTY'S ULTRAORTHODOX RIVALS SHAS'S IMPORTANCE GOES FAR BEYOND THIS VOTE THE LEFT AND THE RIGHT IN ISRAEL ARE CLEARLY DIVIDED THE PEOPLE WHO VOTE FOR SHAS ARE ONE OF THE FEW GROUPS LEFT WHO CAN GO EITHER WAY ON MANY KEY ISSUES SAYS GERALD STEINBERG A POLITICAL SCIENTIST AT BARILAN UNIVERSITY IN RAMAT GAN IN THE PAST THEIR MEMBERS HAVE SUPPORTED BOTH LABOR AND THE OPPOSITION LIKUD THEY ARE A CRITICAL SWING GROUP AND VITAL TO THE LABOR PARTY STAYING IN POWER MR DERI HAS BEEN UNDER INVESTIGATION FOR THREE YEARS ON CHARGES HE ALLEGEDLY FUNNELED ABOUT 250000 TO SHAS AND INSTITUTIONS AFFILIATED WITH THE PARTY BEFORE JOINING THE RABIN COALITION AFTER LAST YEAR'S ELECTIONS MR DERI AGREED TO STEP ASIDE IF AN INDICTMENT WAS PRESENTED IN COURT HE DIDN'T RESIGN EVEN AFTER PROSECUTORS DREW UP A CHARGE SHEET AND MR RABIN EMBROILED IN DELICATE NEGOTIATIONS WITH THE PLO WAS RELUCTANT TO MAKE ANY MOVE AGAINST HIM A GOODGOVERNMENT LOBBYING GROUP TOOK THE MATTER TO COURT AND MR DERI SUBMITTED HIS RESIGNATION AFTER THE SUPREME COURT RULED LAST WEEK THAT MR RABIN MUST DISMISS HIM NOW THAT THE PACT IS SIGNED GOVERNMENT OFFICIALS HAVE TURNED TO WORRYING ABOUT HOW SHAS WILL VOTE WHEN THE KNESSET MEETS NEXT WEEK TO APPROVE THE AGREEMENT IRONICALLY A CABINET FILLED MAINLY WITH SECULAR LEFTWING POLITICIANS HAS STARTED TO BEHAVE LIKE A GROUP OF TALMUDIC SCHOLARS PARSING EVERY ONE OF RABBI YOSEF'S PREVIOUS RULINGS FOR SIGNS ON HOW HE WILL DECIDE THIS TIME THEY EAGERLY CITE THE RABBI'S 1989 DECLARATION THAT IT IS PERMISSIBLE TO RETURN PARTS OF THE BIBLICAL LAND OF ISRAEL IF IT WOULD PREVENT WAR AND BLOODSHED THEY ALSO POINT OUT THAT SHAS WOULDN'T WANT TO LOSE ACCESS TO GOVERNMENT FUNDING WHICH HAS ENABLED THE PARTY TO BUILD UP ITS INSTITUTIONS AND EXPAND ITS POLITICAL BASE MOST POLITICAL ANALYSTS GUESS THAT SHAS WILL EITHER ABSTAIN OR VOTE IN FAVOR OF THE AGREEMENT BUT UNTIL THE ACTUAL VOTE THE MOOD REMAINS UNCERTAIN AFTER A MEETING YESTERDAY BETWEEN RABBI YOSEF AND OPPOSITION LEADERS WHO ARGUE THAT THE AGREEMENT WILL HARM ISRAELI SECURITY MR DERI APPEARED TO PULL BACK SHAS SUPPORT SAYING HE FAVORS HOLDING A NATIONAL REFERENDUM ON THE ISSUE IN NOVEMBER WHEN MUNICIPAL ELECTIONS ARE SCHEDULED TO TAKE PLACE LABOR OFFICIALS SAY THAT IF THEY CAN'T MUSTER A MAJORITY IN THE KNESSET THEY WILL GO TO THE PUBLIC AND HOLD A REFERENDUM STILL OTHERS SUSPECT THAT SHAS MAY BE ENJOYING MAKING THE GOVERNMENT SQUIRM AFTER HANDING IN HIS RESIGNATION EARLIER THIS WEEK MR DERI BLAMED THE JUSTICE MINISTER FOR HIS CURRENT TROUBLES SAYING HE WAS BEING PERSECUTED FOR ETHNIC REASONS HOLDING THE SWING VOTES ON THE GOVERNMENT'S MOST IMPORTANT ACHIEVEMENT IS SWEET REVENGE THEY'LL LET THE GOVERNMENT BURN ON THE FIRE FOR AS LONG AS POSSIBLE OVER THIS SAYS MENACHEM FRIEDMAN AN EXPERT ON THE ULTRAORTHODOX AT BARILAN UNIVERSITY THEY HAVE SOME ACCOUNTS TO SETTLE SO THEY'RE CONTENT TO MAKE THE GOVERNMENT WAIT 9309150022 930915 INTERNATIONAL INSOLVENCIES ROSE 33 FROM A YEAR AGO IN JAPAN SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE CORPORATE INSOLVENCIES IN AUGUST ROSE 33 FROM A YEAR EARLIER TO 1192 CASES PRIVATE CREDIT RESEARCH AGENCY TEIKOKU DATA BANK LTD REPORTED IT WAS THE FIRST YEARONYEAR INCREASE IN FOUR MONTHS INSOLVENCIES HAD RISEN FROM YEAREARLIER LEVELS FOR 31 CONSECUTIVE MONTHS THROUGH APRIL THE AUGUST TALLY IS THE SECONDHIGHEST THIS YEAR AFTER THE 1340 CASES IN MARCH DEBTS LEFT BEHIND BY BANKRUPT COMPANIES IN AUGUST ROSE 13 FROM THE YEAR EARLIER TO 42751 BILLION YEN 403 BILLION THE AGENCY SAID THE AGENCY SAID IN ITS AUGUST REPORT THAT UNSEASONABLY COOL AND WET SUMMER WEATHER AND THE SHARP RISE BY THE YEN TO NEARLY 100 YEN TO THE DOLLAR HAVE PUSHED BACK PROSPECTS FOR THE ECONOMY TO PULL OUT OF ITS SLOWDOWN ILLUSTRATING THE EFFECTS OF THE YEN A MAJOR TOKYO JEWELS AND PRECIOUS METALS IMPORTER BECAME INSOLVENT IN AUGUST AS THE YEN'S RISE PUSHED UP THE UNREALIZED LOSSES FROM ITS INVENTORIES RESULTING IN HEAVY BADDEBT PROBLEMS TEIKOKU DATA BANK HIGHLIGHTED THE RISE IN CONSTRUCTION SECTOR INSOLVENCIES WHICH JUMPED 21 IN AUGUST AND IN MANUFACTURING FAILURES UP 14 9309150021 930915 AMEX OPTIONS TRADE TO USE MORGAN STANLEY INDEXES NEW YORK THE AMERICAN STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON MORGAN STANLEY & CO'S CYCLICAL AND CONSUMER STOCK INDEXES SEPT 21 THE EXCHANGE SAID YESTERDAY IT HAD RECEIVED SECURITIES AND EXCHANGE COMMISSION APPROVAL TO TRADE OPTIONS ON THE TWO INDEXES WHICH REFLECT THE TYPICALLY DISTINCT PERFORMANCES OF ECONOMICALLY SENSITIVE STOCKS AND OF CONSUMER GROWTH STOCKS DURING WEAK ECONOMIC TIMES GROWTH STOCKS USUALLY ARE FAVORED BECAUSE THESE COMPANIES TEND TO MAINTAIN THEIR EARNINGS GROWTH EVEN IF THE ECONOMY FLAGS CYCLICAL STOCKS TEND TO PERFORM BEST IN AN IMPROVING ECONOMY THE CYCLICAL INDEX INCLUDES STOCKS IN THE AUTO METAL PAPER MACHINERY CHEMICAL AND TRANSPORT INDUSTRIES WHILE THE CONSUMER INDEX IS MADE UP OF FOOD BEVERAGE DRUG TOBACCO AND PERSONAL PRODUCT STOCKS THE AMEX TRADES 341 STOCK OPTIONS INCLUDING 95 OPTIONS ON OVERTHECOUNTER STOCKS AND 43 LEAPS OR LONGTERM EQUITY ANTICIPATION SECURITIES THE AMEX ALSO TRADES OPTIONS ON SIX BROAD MARKET INDEXES AND SIX INDUSTRYBASED INDEXES 9309150020 930915 ALLSTAR ANALYSTS 1993 SURVEY HOW BROKERAGE FIRMS RANKED BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE ALLSTAR ANALYSTS REPORT IS BASICALLY DESIGNED TO HONOR OUTSTANDING WORK BY INDIVIDUAL ANALYSTS IT'S INDIVIDUALS NOT THEIR FIRMS WHO SQUINT AT COLUMNS OF FIGURES SIT IN CRAMPED AIRLINE SEATS AND EAT PIZZA AT THEIR DESKS AT MIDNIGHT SO THAT THEIR CLIENTS CAN HAVE GREAT STOCK PICKS BUT THE QUESTION OF WHICH BROKERAGE HOUSES HAVE THE MOST ALLSTARS ALSO ITCHES TO BE ANSWERED AFTER ALL A FIRM WHOSE ANALYTICAL CADRE IS LADEN WITH ALLSTARS IS MORE LIKELY TO BE WORTH LISTENING TO THAN ONE THAT BARELY PENETRATED THE ALLSTAR ROSTER BROKERAGE FIRMS AGGRESSIVELY RECRUIT TOP ANALYSTS AND PROVIDE THEM WITH LIBRARIES COMPUTER SOFTWARE ASSISTANTS AND SOMETIMES GUIDANCE FOR ALL THESE REASONS FIRMS THAT SHOW UP FREQUENTLY IN THE ALLSTAR RANKINGS DESERVE SOME RECOGNITION TOO MERRILL LYNCH CAPTURED THE MOST SPOTS ON THE ALLSTAR ANALYSTS ROSTER WITH A TOTAL OF 20 MERRILL WAS PARTICULARLY OUTSTANDING IN THE ACCURACY OF ITS EARNINGS ESTIMATES WITH 13 PEOPLE HONORED ON THAT SCORE IT HAD SEVEN ALLSTARS IN STOCK PICKING THERE'S MORE THAN ONE WAY TO SLICE UP THE HONORS HOWEVER RIVALS MIGHT SAY THAT MERRILL LYNCH SHOULD BE EXPECTED TO HAVE A LOT OF ALLSTARS BECAUSE IT HAS WALL STREET'S BIGGEST FLEET OF ANALYSTS IF YOU LOOK AT HOW MANY PEOPLE REACHED THE ALLSTAR ROSTER AS A PERCENTAGE OF THE NUMBER OF ANALYSTS ZACKS INVESTMENT RESEARCH EVALUATED AT EACH FIRM DEAN WITTER REYNOLDS LOOKS PARTICULARLY IMPRESSIVE OUT OF 23 DEAN WITTER ANALYSTS TRACKED 18 MADE THE ALLSTAR LIST IT'S ALSO INTERESTING TO SEPARATE STOCKPICKING SKILL FROM ACCURACY IN ESTIMATING EARNINGS MANY BIG FIRMS EXCELLED AT THE LATTER BUT THE ULTIMATE GOAL OF INVESTMENT ANALYSIS IS AFTER ALL TO PICK WINNING STOCKS CS FIRST BOSTON HAD THE MOST ALLSTAR STOCK PICKERS WITH 10 DEAN WITTER WAS CLOSE BEHIND AT NINE WHEN IT CAME TO MAKING PINPOINT EARNINGS ESTIMATES MERRILL LYNCH LED WITH 13 FOLLOWED BY DONALDSON LUFKIN & JENRETTE AND MORGAN STANLEY EACH WITH 10 A STRONG SHOWING WAS MADE BY DUFF & PHELPS WHICH ISN'T OFTEN THOUGHT OF AS A MAJOR STOCKRESEARCH HOUSE BUT PRODUCED SIX STOCKPICKING ALLSTARS IN STOCK PICKING CHICAGOBASED DUFF & PHELPS RANKED AHEAD OF TWO HIGHLY RESPECTED NEW YORK FIRMS MORGAN STANLEY WITH THREE STOCKPICKING ALLSTARS AND GOLDMAN SACHS WITH TWO THE ALLSTAR REPORT INCLUDES FIRMS THAT DEAL MAINLY WITH INDIVIDUALS SUCH AS MERRILL LYNCH AND DEAN WITTER AND FIRMS THAT DEAL CHIEFLY WITH INSTITUTIONS SUCH AS CS FIRST BOSTON AND DONALDSON LUFKIN & JENRETTE NEITHER TYPE OF FIRM DEMONSTRATED A CLEAR SUPERIORITY OVER THE OTHER IN ALLSTAR COMPETITION OF ABOUT 100 BROKERAGE FIRMS IN ZACKS'S DATA BANK 65 FIRMS PLACED AT LEAST ONE PERSON ON THE ALLSTAR ANALYSTS ROSTER THE ACCOMPANYING TABLE SHOWS FIRMS WITH FIVE OR MORE ALLSTARS THESE 21 FIRMS ACCOUNTED FOR ABOUT THREEQUARTERS OF THE ROSTER 9309150019 930915 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN AIRLINES SAID IT WILL LAY OFF 5000 WORKERS THIS YEAR AND GROUND 19 MORE JETS THAN ORIGINALLY PLANNED ROBERT CRANDALL CHAIRMAN OF AMR CORP AMERICAN'S PARENT SAID LABOR COSTS MUST COME DOWN IF THE CARRIER IS TO REMAIN A VIABLE COMPETITOR HE SAID HE WOULD BE WILLING FOR EMPLOYEES TO GET A STAKE IN THE COMPANY IN RETURN FOR CONCESSIONS USAIR SLASHED TICKET PRICES BY 27 TO 40 ON FOUR NORTH ATLANTIC ROUTES THE NONREFUNDABLE FARES ARE FOR TRAVEL STARTING NOV 1 UNITED SAID IT PLANNED SIMILAR CUTS WHILE AMERICAN FOLLOWED SUIT ON THREE OF THE ROUTES CHRYSLER AND THE CANADIAN AUTO WORKERS REACHED A TENTATIVE THREEYEAR LABOR PACT AVERTING A STRIKE THAT WOULD HAVE HALTED PRODUCTION OF SOME OF CHRYSLER'S MOST PROFITABLE CARS THE UNION'S MEMBERS WON SUBSTANTIAL IMPROVEMENTS IN PAY AND BENEFITS CAR AND TRUCK SALES ROSE 21 IN EARLY SEPTEMBER SALES CLIMBED 197 AT CHRYSLER AND 78 AT FORD BUT DECLINED 165 AT GENERAL MOTORS RETAIL SALES ROSE AT A SLOWER 02 PACE IN AUGUST WHILE CONSUMER PRICES CLIMBED 03 AFTER RISING 01 IN JULY ANALYSTS SAID LAST MONTH'S PRICE RISE WAS DUE MAINLY TO ONETIME FACTORS BOND PRICES SLID ON THE CONSUMER PRICE DATA WITH THE TREASURY'S 30YEAR ISSUE FALLING MORE THAN 1 3/8 POINTS TO YIELD 598 THE DOW JONES INDUSTRIALS TUMBLED 1845 POINTS TO 361576 CLINTON LAUNCHED HIS CAMPAIGN TO WIN APPROVAL OF NAFTA SIGNING LABOR AND ENVIRONMENTAL DEALS THAT PROVIDE POLITICAL COVER FOR SUPPORTERS BUT THE MOVES DON'T GO FAR ENOUGH TO WIN OVER OPPONENTS OR TO EASE FEARS THAT NAFTA MAY COST THE US MILLIONS OF JOBS A NEW WALL STREET JOURNAL/NBC NEWS POLL FOUND THAT 36 OF AMERICANS SURVEYED OPPOSE THE TRADE PACT WHILE JUST 25 APPROVE OF THE PROPOSAL DEVELOPER EDWARD DEBARTOLO PLANS TO RAISE ABOUT 600 MILLION BY SELLING SHARES IN 51 SHOPPING MALLS RJR NABISCO PLANS TO ELIMINATE ABOUT 1000 TOBACCO JOBS OR 9 OF THE UNIT'S WORK FORCE MORE COSTCUTTING STEPS ARE EXPECTED WITH THE MARKETING BUDGET THE NEXT LIKELY TARGET OPEC MAY RAISE ITS PRODUCTION CEILING IN A MOVE TO TIGHTEN WORLD PETROLEUM SUPPLIES THE TACTIC WOULD ALLOW KUWAIT A QUOTA HIGH ENOUGH TO ENTICE IT BACK INTO THE OPEC FOLD JAPAN'S ECONOMY SHRANK AT AN ANNUAL RATE OF 2 IN THE SECOND QUARTER THE GOVERNMENT IS LIKELY TO ANNOUNCE A STIMULUS PACKAGE TOMORROW MERCK DROPPED ITS EFFORTS TO DEVELOP A ONCEPROMISING AIDS DRUG IT SAID THE DRUG CAUSES THE AIDS VIRUS TO MUTATE AND BECOME RESISTANT REEBOK FIRED BOTH ITS DOMESTIC AD AGENCY CHIAT/DAY AND ITS EUROPEAN SHOP EURO RSCG AWARDING THE 140 MILLION ACCOUNT TO LEO BURNETT THE IMF REVISED DOWNWARD ITS ECONOMIC FORECAST THE AGENCY NOW EXPECTS THE US ECONOMY TO GROW 24 THIS YEAR AND 27 NEXT YEAR IT HAD FORECAST 32 GROWTH IN EACH YEAR CITICORP PLANS TO SPEND MORE THAN 100 MILLION TO UPGRADE ITS GLOBAL NETWORK OF BANK BRANCHES AS THE BANKING GIANT LOOKS TO ADOPT NEW TECHNOLOGIES AND MARKETING STRATEGIES SEAGATE TECHNOLOGY INSIDERS HAVE BEEN PARING THEIR HOLDINGS OF THE DISKDRIVE MAKER'S STOCK AN INDICATION THE INDUSTRY'S PROBLEMS MAY NOT BE OVER STOCKS VOLUME 258621000 SHARES DOW JONES INDUSTRIALS 361576 DOWN 1845 TRANSPORTATION 161253 DOWN 2223 UTILITIES 25514 DOWN 132 BONDS LEHMAN BROTHERS TREASURY INDEX 562008 OFF 6711 COMMODITIES OIL 1696 A BARREL UP ONE CENT DOW JONES FUTURES INDEX 12553 OFF 059 SPOT INDEX 12174 UP 092 DOLLAR 10583 YEN OFF 049 16095 MARKS UP 00010 9309150018 930915 MARKETING & MEDIA LEGO PLANS TO LAUNCH LINE OF CHILDREN'S CLOTHING SPECIAL TO THE WALL STREET JOURNAL COPENHAGEN LEGO AS THE TOY COMPANY THAT MAKES THOSE COLORFUL SNAPTOGETHER BUILDING BLOCKS PLANS TO LAUNCH A LINE OF CHILDREN'S CLOTHING THE DANISH COMPANY SAID ITS LEGO LICENSING AS UNIT REACHED AN AGREEMENT WITH DANISH CLOTHES MAKER KABOOKI AS TO MANUFACTURE LEGO CLOTHING TARGETED AT CHILDREN BETWEEN TWO AND 10 YEARS OF AGE THE FIRST LINE WILL BE LAUNCHED IN SEPTEMBER IN DENMARK NORWAY SWEDEN AND HOLLAND IN FEBRUARY 1994 A NEW COLLECTION WILL BE MARKETED IN BELGIUM AND LUXEMBOURG LEGO'S FIRST VENTURE INTO THE CLOTHING BUSINESS IN 1988 WITH A UKBASED CLOTHING COMPANY SR GENT WASN'T A ROARING SUCCESS THE LEGO CHILDREN'S WEAR WAS SOLD THROUGH BRITISH RETAILER MARKS & SPENCER BUT FRICTION OVER STYLE AND QUALITY ALONG WITH MARKETING PROBLEMS BROUGHT THE COOPERATION BETWEEN LEGO AND SR GENT TO AN END IN 1992 9309150017 930915 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN OFFICIAL RUSSIAN STATISTICS MASSIVELY UNDERSTATE THE COUNTRY'S UNEMPLOYMENT PROBLEM ACCORDING TO A STUDY BY THE INTERNATIONAL LABOR ORGANIZATION MOSCOW'S LATEST OFFICIAL REPORT SAID 716800 PEOPLE WERE REGISTERED AS UNEMPLOYED IN JULY ABOUT 1 OF THE WORK FORCE BUT GUY STANDING DIRECTOR OF THE ILO'S CENTRAL AND EAST EUROPEAN TEAM NOTED THAT IN MEETINGS WITH RUSSIAN OFFICIALS THE CURRENT RATE WAS AGREED TO BE 7 TO 10 ACCOUNTING FOR WORKERS WHO ARE ON UNPAID LEAVE BUT NOT REGISTERED AS UNEMPLOYED WOULD PUSH THE RATE ABOVE 10 AND CONTINUED ECONOMIC REFORM IS LIKELY TO PUSH THE RATE EVEN HIGHER HE ADDED UNEMPLOYMENT HASN'T BEEN A MAJOR POLITICAL ISSUE IN RUSSIA RELYING ON MOSCOW'S DATA SOME OFFICIALS AND ECONOMISTS ARGUE THAT NEW PRIVATE COMPANIES HAVE MADE UP FOR THE LOST INDUSTRIAL JOBS MR STANDING DISPUTED THAT CLAIM HE SAID CULTURAL AND BUREAUCRATIC FACTORS HAVE KEPT RUSSIANS FROM REGISTERING FOR UNEMPLOYMENT AID JOBLESSNESS STILL CARRIES A STIGMA IN RUSSIA WHERE UNTIL 1991 IT WAS A CRIME TO BE OUT OF WORK CHINA'S CIVIL AVIATION ADMINISTRATION HAS OPENED UP THE COUNTRY'S AIRPORTS TO FOREIGN INVESTMENT AND MANAGEMENT IN AN EFFORT TO SPEED UP NECESSARY UPGRADES AND CONSTRUCTION ABOUT 7 BILLION IS NEEDED TO BUILD AND UPGRADE 40 LARGE AIRPORTS IN PROVINCIAL CAPITALS TOURIST DESTINATIONS AND CHINA'S SPECIAL ECONOMIC ZONES INCLUDING SHENZHEN WITH THE UPGRADES HALF THE PROVINCIAL AIRPORTS SHOULD BE ABLE TO HANDLE PLANES THAT SEAT 200 TO 300 PEOPLE THE AIRPORTS ALSO NEED MORE MODERN TRAFFICCONTROL AND COMMUNICATIONS FACILITIES LEADERS OF SOUTH KOREA'S TOP CONGLOMERATES AGREED TO BOOST CAPITAL INVESTMENTS AND SEEK OTHER WAYS TO PULL THE ECONOMY OUT OF A FOURYEAR SLUMP ANSWERING APPEALS FROM PRESIDENT KIM YOUNG SAM THE OFFICIALS REPRESENTING SAMSUNG GROUP HYUNDAI GROUP DAEWOO GROUP AND LUCKYGOLDSTAR GROUP AMONG OTHERS ALSO AGREED TO RAISE THEIR EXPORT GOALS THIS YEAR TO TURN THE NATION'S TRADE BALANCE INTO A 10 BILLION SURPLUS THE FEDERATION OF KOREAN INDUSTRIES WILL SET UP A PANEL TO HAMMER OUT MEASURES TO CLEAR OBSTACLES FOR SOUTH KOREAN EXPORTS AND LOOK FOR WAYS TO BOOST CAPITAL INVESTMENT AND MARKETING TO HELP SOUTH KOREAN PRODUCTS COMPETE GLOBALLY TAIWAN WILL ESTABLISH A USSTYLE PEACE CORPS OF AID WORKERS FOR DEVELOPING NATIONS TO HELP THE ISLAND BREAK OUT OF ITS DIPLOMATIC ISOLATION THE CORPS WILL FOCUS ON DEVELOPING COUNTRIES IN WHICH TAIWAN BUSINESS HAS INVESTED HEAVILY BEGINNING NEXT YEAR 1 MILLION WILL BE SET ASIDE TO SEND AS MANY AS 50 VOLUNTEERS ABROAD ANNUALLY THE FIRST GROUP OF ABOUT 15 WORKERS WILL LEAVE NEXT JULY FOR AN UNSPECIFIED SOUTHEAST ASIAN COUNTRY A NATIONWIDE COMMERCIAL TELEVISION NETWORK THE FIRST IN EASTERN EUROPE WILL GO ON THE AIR IN THE CZECH REPUBLIC IN FEBRUARY REPLACING ONE OF THE THREE STATERUN NETWORKS THE PROGRAMMING WILL REACH NEARLY 100 OF THE POPULATION A 12YEAR LICENSE TO RUN THE COMMERCIAL NETWORK WAS AWARDED IN FEBRUARY TO CET 21 A SMALL PRIVATE GROUP MOST OF CET 21'S 46 MILLION CAPITAL COMES FROM CENTRAL EUROPEAN DEVELOPMENT CORP WHICH IS RUN BY MARK PALMER THE FORMER US AMBASSADOR TO HUNGARY CHINA IS RESTRICTING THE PROLIFERATION OF PAGING COMPUTER MESSAGE MOBILE TELEPHONE AND OTHER COMMUNICATION SERVICES STARTING IN NOVEMBER BUSINESSES WILL HAVE TO OBTAIN A LICENSE TO SELL OR RENT SUCH DEVICES AS RADIO PAGERS AND MOBILE TELEPHONES COMPANIES OFFERING COMPUTER MESSAGE SERVICES SUCH AS EMAIL MUST REGISTER WITH LOCAL AUTHORITIES NONE OF THESE SERVICES HAD BEEN RESTRICTED OR LICENSED BY THE GOVERNMENT THIS YEAR'S RECOVERY IN BRITISH MANUFACTURING APPEARS TO HAVE BEEN CONSIDERABLY WEAKER THAN MANY THOUGHT WITH REVISED GOVERNMENT PRODUCTION FIGURES PINNING SOME OF THE UPTURN ON HIGHER PRICES NOT HIGHER OUTPUT THE DATA COME ON THE HEELS OF BLEAK FORECASTS FROM MAJOR BRITISH MANUFACTURERS AND COULD LOWER THE COUNTRY'S GROWTH PROSPECTS FOR THE YEAR A NEW METHOD OF COMPILING PRODUCTION DATA USING EXPORT PRICES AS WELL AS PRODUCER PRICES SHOWS THAT SOME OF THE RISE IN PRODUCTION THIS YEAR CAME FROM COMPANIES' USING THE DEVALUATION OF THE BRITISH POUND TO RAISE EXPORT PRICES AS A RESULT SOME ESTIMATE THAT MANUFACTURING GREW ABOUT 17 IN THE YEAR TO JULY NOT THE 3 ESTIMATED OTHER FIGURES SHOWED PRODUCTION RISING IN LINE WITH EXPECTATIONS IN THE THREE MONTHS THROUGH JULY TOTAL OUTPUT ROSE 1 FROM THE PREVIOUS THREE MONTHS AND 32 FROM A YEAR EARLIER MANUFACTURING ROSE 01 ON THE MONTH AND 22 ON THE YEAR LIECHTENSTEIN'S PARLIAMENT VOTED TO OUST 34YEAROLD PRIME MINISTER MARKUS BUECHEL CRITICS SAID HE FAILED TO CONSULT PARTY MEMBERS ON KEY DECISIONS A 20FOOT BRONZE STATUE OF GEN DOUGLAS MACARTHUR IN INCHON SOUTH KOREA SITE OF THE AMPHIBIOUS LANDING THAT TURNED THE TIDE OF THE KOREAN WAR 43 YEARS AGO MAY BE RELOCATED BECAUSE THE GENERAL WAS A FOREIGNER A STATUE OF A KOREAN INDEPENDENCE FIGHTER WOULD BE INSTALLED IN ITS PLACE 9309150016 930915 END THE FED'S FINETUNING BY MILTON FRIEDMAN SUPPOSE YOUR FRIENDLY BROKER MADE BETWEEN 25 AND 50 OF TRANSACTIONS FOR EVERY DOLLAR THAT YOU ADDED NET TO YOUR ACCOUNT YOU WOULD BE OUTRAGED AT SUCH CHURNING OF YOUR ACCOUNT SO WOULD THE SECURITIES FIRM AND THE SECURITIES AND EXCHANGE COMMISSION YET THAT IS WHAT YOUR FRIENDLY FEDERAL RESERVE SYSTEM DOES ROUTINELY YEAR AFTER YEAR WITH YOUR MONEY CONSIDER THE DATA IN THE ACCOMPANYING TABLE ON FEDERAL RESERVE TRANSACTIONS AND CHANGES IN THE HOLDINGS OF US GOVERNMENTAL AND FEDERAL AGENCY SECURITIES AND OTHER ITEMS FOR THE PAST THREE YEARS TO EXPRESS THE CHURNING DIFFERENTLY SEVERAL FEDERAL RESERVE TRANSACTIONS AMOUNTED TO ROUGHLY THREE TIMES THE TOTAL VALUE OF ITS SECURITIES HOLDINGS AND 10 TO 15 TIMES TOTAL BANK RESERVES DESPITE THEIR ABSOLUTE SIZE FEDERAL RESERVE TRANSACTIONS CONSTITUTE ONLY ABOUT 2 OR 3 OF THE TRANSACTIONS ENGAGED IN DURING A YEAR BY ALL US GOVERNMENT SECURITIES DEALERS NONETHELESS THEY ARE OF SUBSTANTIAL BENEFIT TO AUTHORIZED DEALERS BOTH THROUGH DIRECT FINANCIAL COMMISSIONS AND PERHAPS EVEN MORE THROUGH THE CONTACTS PRESTIGE AND INFORMATION THAT THEY ACQUIRE BY DEALING DIRECTLY WITH THE FED THE REAL SOCIAL COST CONSISTS OF THE HIGHQUALITY HUMAN AND PHYSICAL RESOURCES ABSORBED BY THE CHURNING WHY DOES THE FED ENGAGE IN SUCH EXTENSIVE TRANSACTIONS WHICH IT TERMS DEFENSIVE TRANSACTIONS THE SOLE PURPOSE IS TO PREVENT FLUCTUATIONS IN THE FEDERALFUNDS RATE WHICH IS THE RATE BANKS PAY TO EACH OTHER FOR OVERNIGHT BORROWINGS THE FED SETS ITSELF A TEMPORARY TARGET FOR THE FEDERALFUNDS RATE AND THEN BUYS SECURITIES WHENEVER THE FUNDS RATE TENDS TO FALL ALL IN ORDER TO FINETUNE THE RATE ON A DAYTODAY BASIS YET PEGGING THE FEDERALFUNDS RATE IS STRICTLY PERIPHERAL TO THE FED'S REAL TASK WHICH IS TO ENSURE THAT THE QUANTITY OF MONEY BEHAVES IN SUCH A WAY AS TO PRODUCE A STABLE PRICE LEVEL IN MY OPINION THE FED SHOULD NOT BE CONCERNED WITH THE FEDERALFUNDS RATE AT ALL IT SHOULD STICK TO CONTROLLING THE BASE CURRENCY PLUS DEPOSITS AT THE FED THE ONLY NOMINAL MAGNITUDE THAT IT CAN DIRECTLY CONTROL OVER ANY SHORT OR LONG PERIOD AND THAT NO MARKET FORCES CAN PREVENT IT FROM CONTROLLING BY CONTRAST IF IT TRIES TO PEG THE FEDERALFUNDS RATE AT THE WRONG LEVEL IT WILL SOONER OR LATER FAIL IN THE INTERIM IT WILL DO MUCH HARM AS WAS DEMONSTRATED SO DRAMATICALLY IN THE 1970S IN PEGGING THE FUNDS RATE DURING THE 1970S THE FED DID NOT SET OUT TO PRODUCE THE FEDERALFUNDS RATE OF NEARLY 20 THAT IT HAD TO TOLERATE AT THE END OF 1980 AND EARLY 1981 ANY MORE THAN IT SET OUT TO PRODUCE THE CUMULATIVE INFLATION OF THE 1970S BOTH WERE THE RESULT OF ITS STUBBORN ADHERENCE TO FLAWED TACTICS MY FAVORITE MODERATE PROPOSAL FOR THE FED MY EXTREME PROPOSAL IS TO ABOLISH IT IS THAT 1 AT THE BEGINNING OF EACH QUARTER HAVE IT ESTIMATE HOW MUCH IT WILL HAVE TO ADD NET TO ITS HOLDINGS DURING THAT QUARTER TO ACHIEVE ITS TARGET MONETARY GROWTH 2 DIVIDE THAT NUMBER BY 12 AND 3 ANNOUNCE THAT EVERY MONDAY MORNING AT 11 AM IT WILL BUY THAT AMOUNT OF SECURITIES FROM THE LOWEST BIDDER AND THEN CLOSE UP SHOP UNTIL THE NEXT MONDAY EXCEPT FOR REPLACING MATURING SECURITIES WHAT HARM WOULD THAT DO IT WOULD MEAN DAYTODAY AND WEEKTOWEEK FLUCTUATION IN THE FEDERALFUNDS RATE HOWEVER THE SOPHISTICATED FINANCIAL MARKETS HAVE SURELY DEMONSTRATED THEIR CAPACITY TO HANDLE WIDE DAILY FLUCTUATIONS IN ALL KINDS OF SECURITIES PRICES DEALING WITH THE FLUCTUATIONS IN THE FEDERALFUNDS RATE WOULD BE CHILD'S PLAY ENDING THE FED'S FINETUNING OF THE FEDERALFUNDS MARKET WOULD HAVE MANY ADVANTAGES THE FED'S FUNCTION IS TO CONTROL THE PRICE LEVEL VIA CONTROLLING THE MONEY SUPPLY NOT TO BE A MAJOR PLAYER IN CREDIT MARKETS IN ITS VAIN ATTEMPT TO CONTROL SOMETHING IT CANNOT CONTROL NAMELY THE REAL INTEREST RATETHE FED HAS PERSISTENTLY TENDED TO DESTABILIZE THE ECONOMY IN RECENT TESTIMONY CHAIRMAN ALAN GREENSPAN UNFORTUNATELY REFERRED EXPLICITLY TO THE REAL INTEREST RATE AS A POSSIBLE INTERMEDIATE TARGET OF THE FED DESPITE EXTENSIVE EVIDENCE THAT IT IS NEITHER A FEASIBLE NOR A DESIRABLE TARGET THE FED'S OBSESSION WITH PEGGING THE FEDERALFUNDS RATE REMINDS ME OF THE ANCIENT STORY OF THE DRUNK WHO IS LOOKING FOR HIS LOST KEYS UNDER THE STREET LIGHT BECAUSE THAT IS WHERE THE LIGHT IS NOT BECAUSE THAT IS WHERE HE LOST THEM THE FED CAN PEG THE FEDERALFUNDS RATE OVER SHORT PERIODS AND THEREFORE GIVE THE ILLUSION OF PERFORMING SUCCESSFULLY EVEN WHEN IT IS DOING A POOR JOB AT ITS REAL FUNCTION AS UNFORTUNATELY IT HAS OVER THE GREATER PART OF ITS HISTORY ESTABLISHED IN 1914 THE FED PRESIDED OVER A MORE THAN DOUBLING OF THE PRICE LEVEL DURING WORLD WAR I GENERATED A MAJOR CONTRACTION FROM 1920 TO 1921 CONVERTED A GARDENVARIETY RECESSION IN 192930 INTO A CATASTROPHIC DEPRESSION PRODUCED A SERIOUS RECESSION IN 193738 WHEN THE ECONOMY WAS RECOVERING FROM THE DEPRESSION PRESIDED AGAIN OVER A MORE THAN DOUBLING OF THE PRICE LEVEL DURING WORLD WAR II AND PRODUCED A DISASTROUS CUMULATIVE INFLATION DURING THE 1970S WHOSE CONSEQUENCES WE ARE STILL LIVING WITH HARDLY A RECORD JUSTIFYING THE CONTINUED USE OF THE FEDERALFUNDS RATE AS THE FED'S PRINCIPAL OPERATING INSTRUMENT MR FRIEDMAN IS A RESEARCH FELLOW AT THE HOOVER INSTITUTION IN STANFORD CALIF 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 9309150015 930915 ALLSTAR ANALYSTS 1993 SURVEY INDUSTRY BY INDUSTRY HERE IS WHAT THE ALLSTARS THINK NOW BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHAT HAVE YOU DONE FOR ME LATELY NOWHERE IS THAT QUESTION MORE POPULAR THAN ON WALL STREET THE MEN AND WOMEN NAMED TO THE ALLSTAR ANALYSTS LIST WILL BE ABLE TO BASK FOR A FEW DAYS IN GLORY MAYBE THEY'LL SIP CHAMPAGNE OR GET A BOUQUET FROM AN OLD FLAME THEN THEY'LL BE REMINDED OF A CLASSIC SAYING ON THE STREET YOU'RE ONLY AS GOOD AS YOUR LATEST PICK IN THAT SPIRIT THE PAGES THAT FOLLOW OFFER AN INDUSTRYBYINDUSTRY TOUR THAT TELLS NOT ONLY WHAT THE ALLSTAR ANALYSTS DID TO EARN THEIR HONORS LAST YEAR BUT WHAT THEY THINK OF THEIR INDUSTRIES TODAY TIMING AFTER ALL IS CRUCIAL IN THE WORLD OF STOCK PICKING WHAT WAS OUT OF FAVOR AND A BARGAIN LAST YEAR MIGHT BE TOO PRICEY TODAY THE TREND THAT WAS WORTH RIDING LAST YEAR MAY FIZZLE OUT OR IT MAY GAIN NEW LIFE AND EVEN INTENSIFY THAT'S WHY THE WALL STREET JOURNAL DEPLOYED MORE THAN 30 REPORTERS TO ASK THE ALLSTAR ANALYSTS FOR THEIR CURRENT OPINIONS ON THE INDUSTRIES AND STOCKS THEY COVER THE INDUSTRY PROFILES THAT FOLLOW RUN THE GAMUT FROM AIRLINES TO UTILITIES EACH PROFILE FEATURES THE VIEWS OF THE INDUSTRY'S THREE TOP STOCK PICKERS DURING CALENDAR 1992 ABOUT STOCKS THEY LIKE AND IN SOME CASES DISLIKE NOW THE TABLES ON PAGES R6 AND R7 PRESENT THE FULL ROSTER OF ALLSTARS INCLUDING BOTH THE FIVE TOP STOCK PICKERS AND THE FIVE ANALYSTS WHOSE EARNINGS ESTIMATES PROVED MOST ACCURATE SOME ALLSTARS ARE STICKING WITH WHAT WORKED WELL LAST YEAR FOR EXAMPLE THE TOP PICKERS IN AIRLINES GENERALLY EMPHASIZED REGIONAL AIRLINES LAST YEAR AND THEY STILL DO THE TOP PICKERS IN DRUGS LAST YEAR CONCENTRATED ON GENERIC DRUG COMPANIES AND DRUGDELIVERY COMPANIES AND THEY TOO LOOK FOR MORE OF THE SAME BUT TOPRATED BEVERAGE ANALYST ALLAN KAPLAN OF MERRILL LYNCH ISN'T RECOMMENDING ANY BEVERAGE STOCKS AT THE MOMENT AND TOPRANKED CHEMICALSTOCK PICKER PAUL LEMING OF KIDDER PEABODY CAN HARDLY FIND A CHEMICAL STOCK HE THINKS IS WORTH ITS SALT THEY ARE JUST TWO OF MANY ALLSTARS WHO FEEL THAT THE CURRENT MARKET CLIMATE CALLS FOR A DIFFERENT APPROACH TO STOCK PICKING THAN THE ONE THEY USED TO EARN THEIR KUDOS LAST YEAR WILL THE REDHOT LITTLE GAMBLING STOCKS CONTINUE THEIR RUN CAN TOBACCO STOCKS BOUNCE BACK FROM THE PRICE WARS THAT BEGAN WITH PHILIP MORRIS'S SLASHING THE PRICE OF MARLBOROS IS THERE GAS LEFT IN THE AUTOS TO SEE WHAT ALLSTAR ANALYSTS SAY ABOUT THESE AND OTHER INVESTMENT QUESTIONS OF THE DAY READ ON 9309150014 930915 ALLSTAR ANALYSTS 1993 SURVEY SOME QUESTION IF ANALYSTS ARE WORTH THEIR PAY BY JOHN R DORFMAN AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL SOME STOCK ANALYSTS ARE WELL PAID OTHERS ARE VERY WELL PAID AT LARGE FIRMS SENIOR ANALYSTS THE FOLKS WHO SIGN THEIR NAMES TO THE OPINIONS OFTEN MAKE 150000 TO 800000 ANNUAL COMPENSATION EXCEEDING 1 MILLION IS POSSIBLE THOUGH RARE EVEN AT SMALL FIRMS SENIOR ANALYSTS FREQUENTLY MAKE 100000 OR MORE ARE ANALYSTS WORTH THEIR PAY NO ONE DENIES THAT ANALYSTS ARE SMART PEOPLE WHO WORK LONG HOURS AND PUBLISH VOLUMINOUS REPORTS STILL IF YOU JUDGE STRICTLY BY THE INVESTMENT PERFORMANCE OF ANALYSTS' STOCK PICKS IT'S NOT OBVIOUS THAT ALL THE JUMBO INCOMES ARE JUSTIFIED JOHN D RYAN WHO HEADED THE WORK ON THIS ALLSTAR ANALYSTS REPORT AT ZACKS INVESTMENT RESEARCH SAYS THAT FOLLOWING THE AVERAGE ANALYST'S ADVICE THROUGHOUT 1992 WOULD HAVE GIVEN AN INVESTOR AN 89 GAIN FOR THE YEAR THAT'S BETTER THAN THE STANDARD & POOR'S 500STOCK INDEX WHICH ROSE 76 BOTH FIGURES INCLUDE DIVIDENDS SO FAR SO GOOD BUT IN 26 OUT OF THE 30 INDUSTRIES STUDIED AN INVESTOR COULD HAVE OUTPERFORMED THE ANALYSTS BY BUYING EQUAL DOLLAR AMOUNTS OF EVERY STOCK IN THAT PARTICULAR INDUSTRY MR RYAN SAYS AND IN MANY CASES THIS NAIVE STRATEGY WOULD HAVE OUTDONE THE ANALYSTS BY 10 PERCENTAGE POINTS OR MORE THAT'S NOT SO GOOD WHY DID THE INDUSTRY INDEXES OUTDO THE INDUSTRY EXPERTS IN LARGE PART MR RYAN SAYS IT'S BECAUSE 1992 WAS A GREAT YEAR FOR SMALL STOCKS SOME OF THE SMALLCAPITALIZATION ISSUES THAT BURNED UP THE TRACK IN 1992 WERE TOO OBSCURE FOR ANALYSTS TO COVER BUT NOT TOO OBSCURE TO AFFECT THE EQUALWEIGHTED INDUSTRY AVERAGE IF STATISTICS HAVE GOOD AND BAD NEWS FOR ANALYSTS SO DO MONEY MANAGERS THE PROFESSIONAL INVESTORS WHO ARE ONE OF THE CHIEF AUDIENCES FOR ANALYSTS' RESEARCH SOME MONEY MANAGERS ARE CONCERNED ABOUT A HERD MENTALITY AMONG WALL STREET ANALYSTS WITH TODAY'S COMPUTER SYSTEMS EVERYBODY ON WALL STREET SOON KNOWS WHAT DONALDSON LUFKIN'S WILLIAM LEACH THINKS COCACOLA'S EARNINGS WILL BE OR WHETHER FIRST BOSTON'S LYNNE HYMAN BELIEVES PROCTER & GAMBLE IS A GOOD BUY AT THE TOUCH OF A BUTTON ANY ANALYST CAN LEARN THE CONSENSUS ON A PARTICULAR STOCK UNFORTUNATELY THAT SEEMS TO DISCOURAGE MANY ANALYSTS FROM STRAYING VERY FAR FROM THE CONSENSUS THERE'S A COPYCAT COVERYOURBEHIND MENTALITY AMONG ANALYSTS SAYS TERENCE J MCLAUGHLIN A PORTFOLIO MANAGER AT ASHLAND MANAGEMENT IN NEW YORK CHRIS BERTELSEN A PORTFOLIO MANAGER WITH EAGLE ASSET MANAGEMENT IN ST PETERSBURG FLA SAYS HE USES BROKERAGEHOUSE ANALYSTS AS A REALITY CHECK AFTER HE HAS DONE HIS OWN RESEARCH HE LOOKS FOR ANALYSTS WHO ARE LESS INFLUENCED BY THEIR PEERS AND WILL TAKE A STAND EVEN IF IT DOESN'T MATCH WHAT THE THREE OTHER LEADING ANALYSTS ARE SAYING THERE'S A REAL PENALTY IN OUR BUSINESS FOR BEING DIFFERENT MR BERTELSEN SAYS IF YOU'RE WITH THE CROWD NOBODY SEEMS TO BLAME YOU THAT MUCH IF AN ESTIMATE OR RECOMMENDATION PROVES TO BE WRONG BUT WHEN AN ANALYST TAKES AN INDEPENDENT STAND AND MISSES HE SAYS PEOPLE BECOME PERSONAL IN AN EFFORT TO PICK ON YOU MONEY MANAGERS ALSO EXPRESS SOME CONCERN ABOUT CERTAIN POTENTIAL BIASES THAT ARE BUILT INTO THE BROKERAGEHOUSE SYSTEM BIG FIRMS DO INVESTMENT BANKING ARRANGING STOCK AND BOND ISSUES FOR COMPANIES AND IT'S TAKEN ALMOST FOR GRANTED ON THE STREET THAT THE ANALYST AT THE INVESTMENT BANKING FIRM WILL SAY KIND THINGS ABOUT A CLIENT'S STOCK PRESTON ATHEY MANAGER OF T ROWE PRICE ASSOCIATES' SMALL CAP VALUE FUND SAYS THAT IN SUCH CASES HE TAKES ANALYSTS' EARNINGS ESTIMATES AND ESPECIALLY THEIR STOCK RECOMMENDATIONS WITH A WHOLE SHAKER FULL OF SALT THEN TOO ANALYSTS ARE EXPECTED THROUGH THEIR RECOMMENDATIONS TO DRUM UP INTEREST IN STOCKS PRODUCING A FLOW OF TRADING COMMISSIONS THESE THINGS AREN'T FORGOTTEN WHEN IT COMES TIME TO SET AN ANALYST'S ANNUAL BONUS AND AT BIG FIRMS MOST OF AN ANALYST'S INCOME COMES NOT FROM SALARY BUT FROM THE BONUS THEIR BONUS DEPENDS HEAVILY ON THE AMOUNT OF INVESTMENT BANKING BUSINESS THEY BRING IN SAYS WAYNE WHIPPLE EXECUTIVE DIRECTOR OF THE NEW YORK SOCIETY OF SECURITY ANALYSTS FROM THE FIRMS' POINT OF VIEW THEN ANALYSTS' BIG INCOMES COULD WELL BE JUSTIFIED BUT PORTFOLIO MANAGERS AREN'T SO SURE DESPITE THE IMMENSE COMPUTER POWER ANALYSTS HAVE AT THEIR FINGER TIPS AND A VAST INCREASE IN THEIR SALARIES OVER THE PAST DECADE OR SO ANALYSTS MAY NOT BE ANY BETTER AT THEIR FUNDAMENTAL JOB TODAY THAN THEY WERE 10 OR 20 YEARS AGO MANY MANAGERS SAY I KNOW THE QUANTITY IS UP I CAN CERTAINLY MEASURE THAT SAYS GEORGE VANDERHEIDEN MANAGER OF THE FIDELITY DESTINY FUNDS IN BOSTON BUT THE QUALITY MIGHT BE SLIPPING A LITTLE BIT HE SAYS BECAUSE SO MANY PEOPLE ARE TRYING TO DO MORE ONE PERSON WITH A HISTORICAL PERSPECTIVE ON HOW ANALYSTS DO THEIR WORK IS ROBERT STOVALL A NEW YORK MONEY MANAGER WHO WAS A WALL STREET DIRECTOR OF RESEARCH TWO DECADES AGO WHEN I STARTED ANALYSTS WERE PAID VERY LITTLE SAYS MR STOVALL TODAY HE SAYS ANALYSTS ARE BETTER PAID BETTER EDUCATED AND HAVE MORE FACTS AVAILABLE VIA COMPUTER BUT STILL ARE RIGHT ABOUT 60 OF THE TIME JUST LIKE IN THE OLD DAYS I WOULDN'T SAY THEY'RE WORSE TODAY MR STOVALL SAYS BUT THEY SHOULD BE BETTER 9309150013 930915 SENATE COMMITTEE APPROVES 261 BILLION SPENDING BILL WASHINGTON THE SENATE APPROPRIATIONS COMMITTEE APPROVED A NEARLY 261 BILLION LABOR HEALTH AND EDUCATION BUDGET THAT WOULD OVERTURN LONGSTANDING FEDERAL RESTRICTIONS ON MEDICAIDFINANCED ABORTIONS FOR POOR WOMEN THE ACTION CAME AS THE FULL SENATE LAST NIGHT ADOPTED A ONEYEAR MORATORIUM BARRING HIGHER FEDERAL GRAZING FEES PROPOSED BY INTERIOR SECRETARY BRUCE BABBITT THOUGH THE NEW RANGE LAND POLICIES MAY YET BE SALVAGED BY THE HOUSE THE STRONG 5940 SENATE VOTE ILLUSTRATES THE IMMENSE POLITICAL SENSITIVITY OF THE ISSUE IN THE WEST IN THE MEDICAID DEBATE ANTIABORTION FORCES CHOSE NOT TO FORCE A COMMITTEE VOTE YESTERDAY FOR FEAR OF ALMOST CERTAIN DEFEAT BUT THE BILL IS SURE TO BE CHALLENGED IN FLOOR DEBATE AND BEARS ON THE BROADER QUESTION OF HOW THE WHITE HOUSE WILL TREAT ABORTION IN ITS PENDING HEALTHCARE PACKAGE THE SENATE BILL WOULD STRIKE STATUTORY LANGUAGE THAT HAS STOOD SINCE THE MID1970S AND RESTORE A SITUATION IN WHICH STATES PARTICIPATING IN MEDICAID COULD BE REQUIRED TO CONTRIBUTE TO THE COST OF PUBLICLY FUNDED ABORTIONS ALMOST 5 BILLION IN DISCRETIONARY SPENDING WOULD BE CUT FROM THE PRESIDENT'S REQUESTS FOR THE FISCAL YEAR BEGINNING OCT 1 BUT THE MEASURE PROVIDES MAJOR INCREASES NONETHELESS AND IS MORE GENEROUS IN SOME CASES THAN THE COMPARABLE HOUSEPASSED BUDGET 9309150012 930915 ALLSTAR ANALYSTS 1993 SURVEY RAILROADS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL RAILROAD COMPANIES WILL CHUG AHEAD IN 1994 SOME LEADING RAIL ANALYSTS THINK BUT RAILROAD STOCKS MAY BE ANOTHER MATTER SAYS TOPRANKED RAIL ANALYST JACK KAWA MR KAWA OF DEAN WITTER REYNOLDS WAS THE GROUP'S TOP STOCKPICKER IN 1992 HELPED BY GAINS IN UNION PACIFIC AND WISCONSIN CENTRAL HE SAYS THE RAIL INDUSTRY IS DOING VERY WELL AND THE STOCKS HAVE DONE WELL BUT AT THIS POINT HE THINKS THE STOCKS ARE ALREADY FAIRLY VALUED MR KAWA'S LONE BUY AT THE MOMENT IS CSX HE IS BETTING ON A RESURGENCE OF CSX'S COAL TRAFFIC AFTER A DISAPPOINTING THREEYEAR STRETCH MARKED BY ABNORMALLY MILD WEATHER A MINERS' STRIKE AND DECREASED EXPORTS TO EUROPE HE RECENTLY DOWNGRADED UNION PACIFIC TO NEUTRAL ON PRICE GROUNDS MR KAWA SAYS RAILROADS WERE CLOSE TO DEATH UNTIL THEY WERE DEREGULATED IN 1981 AND IT TOOK MOST OF THEM 10 YEARS TO FIGURE OUT WHAT WAS GOING ON IN A DEREGULATED ENVIRONMENT NOW HAVING SLASHED COSTS AND IMPROVED OPERATIONS RAILROADS ARE ON THE THRESHOLD OF THEIR FINEST YEARS IN THE LAST 20 TO 30 YEARS BUT MR KAWA DOESN'T THINK THE RAILS DESERVE TO SELL AT MORE THAN 80 OF THE AVERAGE STOCK'S PRICE/EARNINGS RATIO RAIL STOCKS TRADITIONALLY SELL AT SOME DISCOUNT TO THE OVERALL MARKET BECAUSE THEIR EARNINGS ARE SO CYCLICAL HE TERMS RAILROAD BALANCE SHEETS ONLY FAIR AND PROSPECTS FOR REVENUE GROWTH LIMITED RAILROADS HAVE BEEN ABLE TO HIDE THEIR CYCLICAL NATURE FOR THE PAST THREE OR FOUR YEARS WITH COST CUTS HE SAYS BUT A LOT OF THE COST CUTTING MAY BE BEHIND THEM SECONDRANKED ANALYST GARY YABLON 31 A DIRECTOR OF WERTHEIM SCHRODER IS MORE BULLISH I'M CONVINCED THERE ARE MORE COST REDUCTIONS PRODUCTIVITY IMPROVEMENTS AND MARKET SHARE GAINS AHEAD HE ASSERTS MR YABLON JOINED THE ALLSTAR LIST PARTLY THROUGH TIMELY RECOMMENDATIONS OF WISCONSIN CENTRAL UNION PACIFIC AND BURLINGTON NORTHERN HIS FAVORITE NOW IS CONRAIL WHICH HAS BEEN RAISING ITS DIVIDEND AND BUYING IN ITS OWN SHARES HE ALSO LIKES ILLINOIS CENTRAL WHICH HE EXPECTS TO BUY BACK STOCK AND HE IS STILL SWEET ON WISCONSIN CENTRAL WHICH HE SAYS HAS PROBABLY THE BEST EARNINGS GROWTH POTENTIAL IN THE INDUSTRY AND ON BURLINGTON NORTHERN WHICH HE BELIEVES HAS ROOM FOR FURTHER COST SAVINGS VETERAN ANALYST JOEL PRICE 63 OF DONALDSON LUFKIN & JENRETTE RANKED THIRD THANKS IN PART TO CATCHING THE RUNUPS IN CSX AND UNION PACIFIC HE BELIEVES A LOT OF THE RAIL TURNAROUND ALREADY IS REFLECTED IN THE STOCKS BUT HE ADDS THE PARTY'S NOT OVER MR PRICE RECOMMENDS BURLINGTON NORTHERN WHICH HE BELIEVES WILL CUT COSTS MORE THAN ENOUGH TO OFFSET RATE REDUCTIONS IN COALHAULING CONTRACTS HE ALSO FAVORS NORFOLK SOUTHERN WHICH IS MODERNIZING ITS TRUCKING AND REAL ESTATE ASSETS HE SAYS CHICAGO & NORTH WESTERN HOLDINGS A COAL HAULER FACING RATE PRESSURES IS RIDICULOUSLY CHEAP AT ABOUT 20 A SHARE WHAT'S WRONG WITH OWNING A GOOD COMPANY WITH IMPERFECTIONS THAT IS VERY VERY CHEAP HE ASKS ONE STOCK MR PRICE WOULDN'T BUY IS ILLINOIS CENTRAL WHICH HE SAYS HAS AN AGING LOCOMOTIVE FLEET AND FEW MEANINGFUL OPPORTUNITIES LEFT TO REDUCE COSTS NOW THAT IT HAS REMOVED ONE OF THE TWO TRACKS FROM ITS CHICAGONEW ORLEANS LINE 9309150011 930915 DEBARTOLO PLANS TO CEDE CONTROL OF MALL EMPIRE DEVELOPER EXPECTS OFFERING TO RAISE 600 MILLION PUBLIC TO GET 51 STAKE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL EDWARD J DEBARTOLO A REAL ESTATE BARON WHO SPENT 44 YEARS BUILDING ONE OF THE NATION'S PREMIER PRIVATE RETAIL EMPIRES HAS DECIDED TO CEDE CONTROL OF HIS 51 REGIONAL MALLS TO THE PUBLIC IN A 600 MILLION OFFERING IN PLANS FILED LATE YESTERDAY AFTERNOON WITH THE SECURITIES AND EXCHANGE COMMISSION THE 84YEAROLD YOUNGSTOWN OHIO DEVELOPER INDICATED THAT MORE THAN 500 MILLION OF THE PROCEEDS WILL GO TO HIS BANKS AND INSURANCE COMPANY LENDERS THE DEBARTOLO REALTY CORP THE NEWLY FORMED REAL ESTATE INVESTMENT TRUST WILL BE LEFT WITH ABOUT 50 MILLION FOR EXPANSION OF ITS EXISTING MALLS AND FOR BUYING NEW ONES MR DEBARTOLO WHO HAD A REPUTATION FOR DEMANDING ABSOLUTE CONTROL OVER THE OPERATION OF HIS COMPANY IS THE LATEST OF A STRING OF MAJOR RETAIL DEVELOPERS TO TURN TO THE PUBLIC MARKET FOR MUCHNEEDED CAPITAL OVER THE PAST YEAR SUCH PROMINENT MALL DEVELOPERS AS THE TAUBMANS OF SOUTHLAND MICH THE BUCKSBAUMS OF DES MOINES IOWA AND THE PASQUERILLAS OF JOHNSTOWN PA HAVE TAKEN THEIR COMPANIES PUBLIC THE PASQUERILLA OFFERING CROWN AMERICAN REALTY TRUST AT 423 MILLION WAS THE LARGEST INITIAL PUBLIC OFFERING OF AN EQUITY REIT TO DATE THE DEBARTOLO OFFERING IS EXPECTED TO BRING TO AN END THE FINANCIAL CRISIS THAT VIRTUALLY HALTED THE COMPANY'S GROWTH SEVERAL YEARS AGO AND PUT A CLOUD OVER THE FAMILY'S OTHER HOLDINGS WHICH INCLUDE THE SAN FRANCISCO 49ERS OFFICE BUILDINGS AND RACETRACKS DUE TO SEC PROHIBITIONS AGAINST DISCUSSING PENDING OFFERINGS OFFICIALS AT DEBARTOLO DECLINED TO COMMENT AS DID THOSE AT MORGAN STANLEY & CO LEAD UNDERWRITER ON THE DEAL MR DEBARTOLO WAS FORCED TO SEEK RELIEF FROM BANKERS IN 1991 AFTER A SERIES OF MISSTEPS AND A PLUMMETING REAL ESTATE MARKET COMBINED TO PLACE THE EMPIRE ON SHAKY GROUND IN 1989 DEBARTOLO CORP MADE A 480 MILLION LOAN TO FEDERATED DEPARTMENT STORES WHICH WAS OWNED AT THE TIME BY THE DOOMED CAMPEAU CORP ADDING TO THE COMPANY'S PROBLEMS WAS AN AGGRESSIVE STRATEGY OF USING ITS OWN CAPITAL TO FUND THE CONSTRUCTION OF NEW MALLS AFTER BANKS AND INSURANCE COMPANIES STOPPED LENDING FOR NEW PROJECTS LAST YEAR MR DEBARTOLO'S LENDERS AGREED TO RESTRUCTURE MORE THAN 4 BILLION IN DEBT IN EXCHANGE FOR REPOSITIONING THE COMPANY TO GROW AFTER SEVERAL YEARS ON HOLD THE PUBLIC OFFERING WILL REQUIRE MR DEBARTOLO TO GIVE UP 52 OWNERSHIP AND EFFECTIVE CONTROL OF HIS MALL PROPERTIES WHICH ARE SPREAD ACROSS 16 STATES MR DEBARTOLO WHO WILL STAY ON AS A DIRECTOR HAD LONG EXPRESSED HIS DESIRE TO HAND OVER THE REINS OF THE COMPANY TO HIS SON EDWARD DEBARTOLO JR 46 BUT THE BANKS INVOLVED IN LAST YEAR'S RESTRUCTURING RESISTED AND THE ISSUE WASN'T RESOLVED ACCORDING TO ONE LENDER WITH THE OFFERING HOWEVER THE JUNIOR MR DEBARTOLO WILL SERVE AS THE NEW COMPANY'S CHAIRMAN ALTHOUGH DAYTODAY OPERATIONS WILL BE RUN BY RICHARD SOKOLOV THE NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER THAT PROVISION IS EXPECTED TO MAKE THE OFFERING MORE ATTRACTIVE TO INVESTORS BECAUSE OF THE LARGE SIZE OF THE DEBARTOLO OFFERING UNDERWRITERS PROBABLY WILL DEPEND ON SMALL INVESTORS RATHER THAN INSTITUTIONS TO BUY A SIGNIFICANT PORTION OF THE SHARES SMALL INVESTORS HAVE BEEN SNAPPING UP THE FLOOD OF NEW REIT OFFERINGS THIS YEAR MAINLY BECAUSE THEY OFFER ANNUAL DIVIDEND YIELDS IN EXCESS OF 7 THE INITIAL SEC FILING OF THE DEBARTOLO OFFERING DIDN'T SPECIFY AN EXPECTED DIVIDEND YIELD NEITHER MR DEBARTOLO NOR ANY OF HIS FAMILY'S OTHER INTERESTS WILL POCKET ANY OF THE MONEY RAISED IN THE OFFERING THE DEAL WILL LEAVE THE FAMILY OWNING 48 OF A NEW LIMITED PARTNERSHIP WHICH IN TURN WILL OWN THE MALLS THE NEW REIT WILL OWN 51 OF THE PARTNERSHIP WITH THE REMAINING 1 OWNED BY A RETAIL PARTNER THE REIT'S SHARE OF THE DEBT REMAINING ON THE PROPERTIES WILL BE ABOUT 14 BILLION 9309150010 930915 ALLSTAR ANALYSTS 1993 SURVEY 300 TAKE HONORS AS BEST STOCK PICKERS AND PROFIT PROPHETS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHO ARE THE BEST STOCK ANALYSTS IT'S A CRUCIAL QUESTION EVERY DAY INDIVIDUAL STOCKS ARE BOOSTED OR BASHED BY A WALL STREET ANALYST'S KIND OR CRUEL WORDS WHEN STOCKBROKERS CALL YOU TO RECOMMEND BUYING GENTLE GIANT DEMOLITION OR INTERNATIONAL PEDICURE THEY'RE QUICK TO MENTION THAT THEIR FIRM'S ANALYST THINKS THE STOCK CAN DOUBLE IN TWO YEARS THE FOLKS WHO MANAGE YOUR PENSION OR PROFITSHARING PLAN PROBABLY SCAN ENOUGH ANALYSTS' REPORTS EVERY WEEK TO FILL A BATHTUB AND BEHIND THE SCENES WALL STREET ANALYSTS PLAY A VITAL ROLE IN DETERMINING WHICH CORPORATIONS CAN RAISE MONEY BY SELLING STOCK YET FOR ALL THEIR INFLUENCE ANALYSTS RARELY FACE CLOSE SCRUTINY OF HOW WELL THEIR STOCK PICKS PERFORM AND HOW ACCURATELY THEY PREDICT THE EARNINGS OF COMPANIES THEY COVER AND SO THE WALL STREET JOURNAL SET OUT TO CREATE A DIRECT AND OBJECTIVE MEASURE OF THOSE SKILLS FOR THAT THE JOURNAL TURNED TO ZACKS INVESTMENT RESEARCH INC OF CHICAGO WHICH HAS DEVELOPED AN EXTENSIVE DATA BANK ON ANALYSTS' BUY AND SELL RECOMMENDATIONS AND PROFIT FORECASTS FOR THIS SPECIAL ALLSTAR ANALYSTS REPORT ZACKS TRACKED THE RECOMMENDATIONS AND ESTIMATES MADE DURING CALENDAR 1992 BY 1275 ANALYSTS AT ABOUT 100 BROKERAGE HOUSES MORE THAN 32000 RECOMMENDATIONS AND 65000 EARNINGS ESTIMATES WENT INTO THE EVALUATION PREVIOUSLY THE MAIN RANKINGS OF ANALYSTS CAME FROM POLLS OF INSTITUTIONAL INVESTORS THE BESTKNOWN BEING THE ANNUAL INSTITUTIONAL INVESTOR MAGAZINE POLL OF MONEY MANAGERS HIGH STANDING ON THE II ALLAMERICA TEAM CAN RAISE AN ANALYST'S COMPENSATION BY 100000 A YEAR OR MORE INTERESTING THOUGH SUCH POLLS ARE THEY ARE AT BEST INDIRECT MEASURES OF STOCKPICKING SKILL AND EARNINGSFORECAST ACCURACY ANALYSTS FROM LARGE FIRMS HAVE AN ADVANTAGE IN POLLS AS THEIR FLEET OF SALESPEOPLE HELP TO KEEP AN ANALYST'S NAME IN FRONT OF THE INSTITUTIONAL MONEY MANAGERS WHO CAST THE BALLOTS PEOPLE WHO WORK FOR SMALL FIRMS MAY GET FEW VOTES EVEN THOUGH THEY MAKE GREAT STOCK PICKS OR PINPOINTSHARP EARNINGS ESTIMATES IN THIS ALLSTAR ANALYSTS REPORT LARGE AND WELLKNOWN BROKERAGE HOUSES SUCH AS MERRILL LYNCH DONALDSON LUFKIN DEAN WITTER LEHMAN BROTHERS AND MORGAN STANLEY DOMINATED THE RANKINGS FOR ACCURACY OF EARNINGS ESTIMATES BUT IN STOCK PICKING THE WEALTH WAS SPREAD AROUND PEOPLE FROM SMALL FIRMS SNAGGED PLENTY OF SPOTS ON THE ALLSTAR ROSTER THE REPORT COVERS 30 MAJOR INDUSTRIES ANALYSTS WHO FOLLOW OTHER INDUSTRIES AREN'T COVERED NOR ARE ANALYSTS WHO SWITCHED FIRMS DURING 1992 OR COVERED THEIR INDUSTRY FOR ONLY PART OF THE YEAR ZACKS SPENT MUCH OF 1992 DEVELOPING ITS OCEANIC DATABASE AND THE SOFTWARE THAT ALLOWS RESEARCHERS TO DIVE INTO IT AND EMERGE WITH PEARLS OF INFORMATION IN MAY 1993 IT DELIVERED TO THE JOURNAL ITS PRELIMINARY LIST OF 1992 ALLSTARS THEN AN ELABORATE CHECKING PROCESS BEGAN DATA SHEETS WERE SENT TO PEOPLE ON THE PRELIMINARY LIST TO PEOPLE WHO CAME CLOSE AND TO PEOPLE WHO WERE MEMBERS OF THE 1991 II ALLAMERICA TEAM IN ALL MORE THAN 500 DATA SHEETS WERE SENT OUT BROKERAGE HOUSE OFFICIALS SPENT DOZENS OF HOURS CHECKING THE DATA FOR ERRORS AND OMISSIONS IN A THREEMONTH DIALOGUE THAT LASTED UNTIL LATE AUGUST PEOPLE AT THE BROKERAGE HOUSES ZACKS AND THE JOURNAL WORKED TO MAKE SURE THE FACTS AND FIGURES WERE AS ACCURATE AS POSSIBLE HERE'S HOW THE ALLSTAR STUDY WORKS IN STOCK PICKING ANALYSTS WERE JUDGED BY THE ESTIMATED RETURN AN INVESTOR WOULD HAVE ACHIEVED BY BUYING EACH AND EVERY RECOMMENDED STOCK SOME BROKERAGE HOUSES HAVE GRADATIONS OF BUY RECOMMENDATIONS AND SOME DON'T SO IN THE STUDY STRONG BUYS AND WEAK BUYS OR ACCUMULATE RATINGS WERE CONSIDERED THE SAME EQUAL DOLLAR AMOUNTS WERE ASSUMED TO BE INVESTED IN EACH RECOMMENDED STOCK TO KEEP IT THAT WAY THE HYPOTHETICAL PORTFOLIO WAS REBALANCED MONTHLY AND WHENEVER A STOCK WAS ADDED OR SUBTRACTED THE ESTIMATED RETURNS INCLUDE BOTH CAPITAL GAINS OR LOSSES AND DIVIDENDS IN PERIODS WHERE AN ANALYST RATED EVERY STOCK IN HIS OR HER INDUSTRY A HOLD OR SELL THE INVESTOR'S MONEY WAS ASSUMED TO BE PARKED IN TREASURY BILLS TO MEASURE ANALYSTS' EARNINGS FORECASTING ACCURACY ZACKS TOOK A SERIES OF 12 SNAPSHOTS AT THE END OF EACH MONTH FROM DECEMBER 1991 THROUGH NOVEMBER 1992 AT EACH POINT ZACKS LOGGED IN AN ANALYST'S FORECAST OF A COMPANY'S EARNINGS FOR CALENDAR 1992 OR THE CLOSEST FISCAL YEAR EACH FORECAST WAS COMPARED WITH THE ULTIMATE ACTUAL EARNINGS AND THE DIFFERENCE OR ERROR WAS MEASURED AN ERROR OF SAY SEVEN CENTS A SHARE COUNTED THE SAME WHETHER THE ANALYST WAS HIGH OR LOW IS A SEVENCENT MISTAKE GOOD OR BAD THAT DEPENDS ON HOW FAR OFF AN ANALYST'S COMPETITORS WERE IN ESTIMATING EARNINGS FOR THE SAME COMPANY EACH ERROR AMOUNT WAS COMPARED WITH THE ERROR IN THE CONSENSUS FORECAST AN ERROR FACTOR OF 100 JUST MATCHES THE CONSENSUS AN ERROR FACTOR OF 080 MEANS THAT AN ANALYST WAS 20 MORE ACCURATE THAN THE CONSENSUS THUS ANALYSTS WEREN'T PENALIZED IN ANY WAY FOR ISSUING ESTIMATES ON COMPANIES WHOSE EARNINGS ARE HARD TO FORECAST IN THE END ALL THE ERROR FACTORS WERE AVERAGED TOGETHER TO GET A COMPOSITE SCORE FOR AN ANALYST WHO FOLLOWS SEVEN COMPANIES 84 SCORES 12 MONTHLY ESTIMATES FOR EACH COMPANY WOULD BE AVERAGED TOGETHER TO BE CONSIDERED AN ANALYST IN A PARTICULAR INDUSTRY A PERSON HAD TO PUBLISH AT LEAST THREE RECOMMENDATIONS OR EARNINGS ESTIMATES ON COMPANIES IN THAT INDUSTRY UNDER THAT RULE GENERALISTS WHO COVER STOCKS IN MANY INDUSTRIES WERE SOMETIMES ELIGIBLE IN A COUPLE OF CASES GENERALISTS EDGED OUT PEOPLE WHO COVER AN INDUSTRY FULLTIME FOR A SLOT ON THE ALLSTAR ROSTER THE ALLSTAR ANALYSTS RATINGS ARE A LOT LIKE ONE BASEBALL SEASON'S BATTING STATISTICS WADE BOGGS A GREAT HITTER HAD AN OFF YEAR IN 1992 AND SO COULD ANY GIVEN ANALYST ONE YEAR DOESN'T MAKE A WHOLE CAREER BUT CAREERS ARE MADE ONE YEAR AT A TIME AND AN OBJECTIVE MEASURE OF WHO DID A GOOD JOB IN A PARTICULAR YEAR IS CERTAINLY OF VALUE WHETHER TO BASEBALL FANS OR STOCK INVESTORS TO SOME EXTENT STOCKPICKING SUCCESS IN A SINGLE YEAR CAN BE INFLUENCED BY LUCK FOR EXAMPLE THE SECTOR A BROKERAGE FIRM ASSIGNS TO AN ANALYST MIGHT SUDDENLY ZOOM INTO FAVOR LAST YEAR PEOPLE WHO FOLLOW GENERICDRUG STOCKS DID WELL IN THE DRUGINDUSTRY RANKINGS AND PEOPLE WHO FOLLOW REGIONAL AIRLINES DID WELL IN THE AIRLINE INDUSTRY BUT THERE'S NO QUESTION THAT OUTANDOUT SKILL ALSO LOOMS VERY LARGE YOU DON'T WIN A BATTING CHAMPIONSHIP BY BEING LUCKY IN THAT VEIN IT'S WORTH MENTIONING SOME SPECIAL INDIVIDUAL ACHIEVEMENTS BY ALLSTAR ANALYSTS TWO INDIVIDUALS FINISHED FIRST IN TWO DIFFERENT CATEGORIES ALLAN KAPLAN OF MERRILL LYNCH WAS THE LEADING STOCK PICKER IN THE BEVERAGE INDUSTRY AND THE LEADING EARNINGS FORECASTER IN THE TOBACCO INDUSTRY HE ALSO PLACED FOURTH IN STOCK PICKING IN THE TOBACCO INDUSTRY CAROLINE LEVY OF LEHMAN BROTHERS WAS THE LEADING STOCK PICKER FOR THE FOOD INDUSTRY AND THE LEADING EARNINGS ESTIMATOR IN THE RESTAURANT INDUSTRY EIGHT PEOPLE MADE THE ALLSTAR ROSTER ANY OF THE TOP FIVE SPOTS IN THREE CATEGORIES OR MORE TO DO THAT THEY HAD TO COVER MORE THAN ONE INDUSTRY AND DO WELL BOTH IN STOCK PICKING AND ESTIMATE ACCURACY THEY ARE LAWRENCE ADELMAN OF DEAN WITTER PHIL FRIEDMAN OF MORGAN STANLEY LYNNE R HYMAN OF FIRST BOSTON ELI S LUSTGARTEN OF PAINEWEBBER DEEPAK D RAJ AND ALLAN KAPLAN OF MERRILL LYNCH BENJAMIN M RICE OF BROWN BROTHERS HARRIMAN AND DIANA K TEMPLE OF SALOMON BROTHERS ABOUT THREE DOZEN PEOPLE MADE THE ALLSTAR LIST IN MORE THAN ONE CATEGORY WE CAN'T LIST THEM ALL HERE BUT THE TABLES ON PAGES R6 AND R7 TELL THE STORY 9309150009 930915 ALLSTAR ANALYSTS 1993 SURVEY OIL SERVICE BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL NOT FOR 10 YEARS HAVE ANALYSTS BEEN THIS ENTHUSIASTIC ABOUT OIL SERVICE STOCKS I AM AS BULLISH AS BULLISH CAN BE SAYS RUSSELL HOFFMAN OF RAYMOND JAMES & ASSOCIATES WHO RANKED NO 1 IN STOCK PICKING IN THE GROUP LAST YEAR THE RISING TIDE WILL LIFT ALL SHIPS SAYS SECONDRANKED JEFFREY FREEDMAN OF SMITH BARNEY THE INDUSTRY EMERGING FROM A 10YEAR SLUMP HAS BEEN CONSOLIDATING ALMOST 50 OF THE COMPANIES DISAPPEARED DURING THAT PERIOD WHEN THEY WERE SIMPLY TURNING METAL INTO RUST MR FREEDMAN SAYS BUT NOW RISING NATURAL GAS PRICES AND MORE DRILLING FOR GAS ARE KEEPING THE SERVICE COMPANIES BUSY AS THEY PROVIDE MATERIALS TECHNICAL SUPPORT AND LOGISTICAL AID TO DRILLERS MR HOFFMAN EARNED HIS TOP RANKING MAINLY ON THE STRENGTH OF A LARGE GAIN IN SEITEL WHICH PROVIDES SEISMIC SURVEYS AND DATA TO DRILLERS HE IS STILL A SEITEL FAN AND ALSO LIKES MCDERMOTT INTERNATIONAL ROWAN AND GLOBAL MARINE WITH MCDERMOTT THERE ARE THREE DIFFERENT WAYS TO WIN HE SAYS POWER GENERATION MARINE CONSTRUCTION AND ITS SAKHALIN ISLAND PROJECT IN RUSSIA HE CHOOSES ROWAN AND GLOBAL MARINE BECAUSE HE EXPECTS A FURTHER UPTURN IN NATURAL GAS DRILLING THE DRILLING RIG MARKET IS TIGHTER THAN IT WAS HE SAYS DEMAND IS UP AND DURING THE LONG DEPRESSION MANY RIGS SIMPLY RUSTED OUT OR WERE CANNIBALIZED FOR PARTS SMITH BARNEY'S MR FREEDMAN HAD HIS BIGGEST SUCCESS LAST YEAR WITH OFFSHORE PIPELINES TODAY HE FAVORS HALLIBURTON AND DRESSER INDUSTRIES BOTH IN DALLAS HALLIBURTON DOMINATES THE PRESSURE PUMPING AND FRACTURING SERVICES BUSINESSES NECESSARY TO GET NATURAL GAS WELLS COMPLETED AND PRODUCING DRESSER IS THE LARGEST CAPITAL GOODS SUPPLIER TO THE WORLD PETROLEUM INDUSTRY SAYS MR FREEDMAN CHINA AND RUSSIA WILL NEED THIS TYPE OF EQUIPMENT FOR THEIR PETROLEUM INDUSTRY A GOOD PICK FOR THE LONG TERM HE SAYS AMONG OFFSHORE DRILLERS HIS TOP CHOICE IS READING & BATES WHOSE STOCK HE CONSIDERS UNDERPRICED ARVIND SANGER CAPTURED THIRD PLACE LAST YEAR WHEN HE WAS A JOHNSON RICE ANALYST BUT HAS SINCE SWITCHED TO KIDDER PEABODY HE SEES THE INDUSTRY AS IN THE EARLY STAGES OF A LONGTERM CYCLICAL RECOVERY LEAN AND MEAN WITH ABSOLUTELY NO FAT MR SANGER'S FAVORITES INCLUDE SCHLUMBERGER WHICH HAS BEEN AN UNDERPERFORMER IN THE MARKET SCHLUMBERGER IS ONE OF THE BIGGEST PLAYERS INTERNATIONALLY IN THE OIL SERVICE INDUSTRY AND IT HAS DONE A GOOD JOB OF GETTING COSTS DOWN HE SAYS SONAT OFFSHORE DRILLING OF HOUSTON ATTRACTS HIM BECAUSE OF ITS TECHNICAL EXPERTISE IN DEEPWATER DRILLING AND OFFSHORE PIPELINES BECAUSE OF ITS GEOGRAPHICAL DIVERSITY AND STRONG PRESENCE IN THE GULF OF MEXICO HE ALSO LIKES LITTLE ENERGY VENTURES WHOSE BARGE DRILLING CAPABILITIES ARE USED IN MARSHY SWAMPY AREAS SUCH AS LOUISIANA THE COMPANY ALSO MANUFACTURES DRILL PIPE AND PUMPING UNITS 9309150008 930915 ALLSTAR ANALYSTS 1993 SURVEY UTILITIES ELECTRIC BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL AH REGULATED MONOPOLISTIC ELECTRIC UTILITIES A RESPITE FROM THE WILD MACHINATIONS OF VOLATILE INDUSTRIAL STOCKS RIGHT WELL NOT ANYMORE NOW THAT UTILITIES COMPETE MORE FREELY ANALYSTS WHO ONCE FOCUSED ON ARCANE REGULATORY DECISIONS HAVE TO GAUGE UTILITIES' INNOVATIVENESS AND OPERATING EFFICIENCY DOUGLAS A FISCHER OF AG EDWARDS RANKED TOPS IN STOCKPICKING IN THE GROUP LAST YEAR AT EDWARDS'S HEADQUARTERS IN ST LOUIS WE DON'T GET THE FLOW OF MANAGEMENT VISITS THAT NEW YORK DOES MR FISCHER SAYS BUT BEING AWAY FROM WALL STREET ALLOWS US TO BE MORE INDEPENDENT IN OUR THINKING MR FISCHER LOOKS FOR COMPANIES WITH ATTRACTIVE PRICETOEARNINGS RATIOS AND REASONABLE DIVIDEND PAYOUT RATIOS WHEN TOO HIGH A PERCENTAGE OF EARNINGS IS PAID OUT IN DIVIDENDS THE PAYOUT MAY HAVE TO BE CUT OR AT LEAST KEPT CONSTANT AND IF THERE'S ONE THING UTILITY INVESTORS LIKE IT'S RISING DIVIDENDS IN 1992 HE STRUNG TOGETHER A SERIES OF MODERATE GAINS IN STOCKS SUCH AS NIPSCO BOSTON EDISON NIAGARA MOHAWK NEW YORK STATE ELECTRIC & GAS AND WISCONSIN PUBLIC SERVICE HE STILL LIKES MANY OF THE SAME ISSUES WE LIKE NIAGARA MOHAWK BECAUSE IT OFFERS ABOVEAVERAGE EARNING AND DIVIDEND PROSPECTS MR FISHER SAYS BOSTON EDISON IS DOING A GOOD JOB CONTROLLING COSTS AND IT RECENTLY SECURED A FAVORABLE RATE AGREEMENT WITH STATE REGULATORS NIPSCO HE SAYS HAS AGGRESSIVELY RETIRED DEBT AND EXPANDED ITS NATURAL GAS BUSINESS WILLIAM TILLES OF DEAN WITTER REYNOLDS SNAGGED SECOND PLACE WITH GAINS IN PINNACLE WEST PSI RESOURCES AND SEVERAL OTHERS ON HIS LONG COVERAGE LIST WE LIKE TO FIND COMPANIES WITH LOW PRICETOEARNINGS RATIOS LOW PAYOUT RATIOS AND BELOWAVERAGE RATES OF RETURN MR TILLES SAYS THAT MAY SOUND COUNTERINTUITIVE BUT THOSE KINDS OF COMPANIES CAN GET A BOUNCE FROM FAVORABLE REGULATORY ACTION AMONG HIS FAVORITES TODAY ARE DETROIT EDISON AND LONG ISLAND LIGHTING HICKSVILLE LI BOTH OF THESE COMPANIES LOOK QUITE CHEAP COMPARED TO THE INDUSTRY AVERAGE HE SAYS HE ALSO FAVORS DQE OF PITTSBURGH CITING ITS STRONG ENVIRONMENTAL POSITION THEY'RE FULLY SCRUBBED AND BELOWAVERAGE PAYOUT RATIO THIRDRANKED LAWRENCE S ALBERTS OF DUFF & PHELPS CALLS ON A CAREER IN THE UTILITY INDUSTRY TO GIVE HIM AN EDGE IN PICKING STOCKS LAST YEAR HE POSTED GAINS IN NORTHEAST UTILITIES COMMONWEALTH ENERGY SYSTEMS AND NIAGARA MOHAWK MR ALBERTS FAVORS AGGRESSIVE COSTCUTTING BUT A CONSERVATIVE APPROACH ON NEW BUSINESS VENTURES HE DOESN'T HAVE A LOT OF CONFIDENCE IN RECENT FORAYS INTO NONREGULATED ENERGY BUSINESSES BY UTILITIES THOUGH HE BELIEVES THAT THE UTILITY SEGMENT IS MOSTLY OVERVALUED RIGHT NOW HE HAS A FEW FAVORITES INCLUDING HIS OLD MATES AT NEW ENGLAND ELECTRIC I LIKE THEIR MANAGEMENT SAYS MR ALBERTS THEY'RE PROGRESSIVE YET CONSERVATIVE MR ALBERTS ALSO FAVORS TWO SMALLER UTILITIES UNITED ILLUMINATING AND EASTERN UTILITIES ASSOCIATES 9309150007 930915 TECHNOLOGY & HEALTH FDA ALERT CITES 2 PURITANBENNETT DEVICES STOCK SAGS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION ISSUED A SAFETY ALERT TO HOSPITALS USING RESPIRATORS WITH PURITANBENNETT CORP HUMIDIFIERS BECAUSE THE APPLIANCES MAY HAVE CAUSED FIRES SMOKE AND ELECTRIC SHOCKS THE ALERT ISSUED THIS WEEK FOLLOWED SEVERAL INCIDENTS AND A FEW DEATHS INVOLVING THE DEVICES THE FDA'S ACTION IS SERIOUS BUT FALLS SHORT OF A RECALL IN NATIONAL OVERTHECOUNTER TRADING PURITANBENNETT STOCK PLUNGED 104 YESTERDAY TO CLOSE AT 1725 OFF 2 ON VOLUME OF 345600 SHARES MORE THAN THREE TIMES ITS DAILY AVERAGE VOLUME IN THE MOST RECENT INCIDENT THREE RESPIRATOR PATIENTS DIED SEPT 1 AT MAIMONIDES MEDICAL CENTER IN BROOKLYN NY A FLASH FIRE EARLY THAT MORNING SENT THICK SMOKE THROUGH THE HOSPITAL'S SEVENTH FLOOR IMMEDIATELY KILLING TWO PATIENTS IN ONE ROOM AND ANOTHER IN A NEIGHBORING ROOM MORE THAN 160 PEOPLE WERE EVACUATED THE FDA SAID THE TRAGEDY IS BELIEVED TO HAVE ORIGINATED IN EITHER A PURITANBENNETT CASCADE IA HUMIDIFIER OR IN THE PURITANBENNETT 7200 SERIES VENTILATOR RESPIRATOR TO WHICH THE HUMIDIFIER WAS ATTACHED THE AGENCY EMPHASIZED THAT IT HAS RECEIVED REPORTS THAT TENTATIVELY LINK SEVERAL MODELS OF HUMIDIFIERS MADE BY PURITANBENNETT AND OTHER COMPANIES TO FIRES AND OVERHEATING THE MACHINES ARE USED IN CONJUNCTION WITH RESPIRATORS THE SAFETY AGENCY CAUTIONED HOSPITALS AND MEDICAL WORKERS TO TAKE PRECAUTIONS WITH THE MACHINES AMONG THE RECOMMENDED MEASURES IS TO STOP USING ANY SUCH DEVICES SHOWING SIGNS OF OVERHEATING OR ELECTRICAL MALFUNCTION A PURITANBENNETT SPOKESMAN WAYNE PINES SAID THE RESPIRATORS THEMSELVES DIDN'T CAUSE ANY FIRES OR SMOKE THE HUMIDIFIERS HE SAID COULD HAVE BEEN THE CAUSE BUT ONLY IF THEY WEREN'T MAINTAINED PROPERLY BY THE HOSPITAL THERE ARE 26000 PURITANBENNETT 7200 SERIES RESPIRATORS AND ABOUT 140000 PURITANBENNETT CASCADE HUMIDIFIERS BELIEVED TO BE IN USE WORLDWIDE IN MAY A PATIENT IN JAPAN DIED WHEN A PURITANBENNETT HUMIDIFIER ATTACHED TO A RESPIRATOR CAUGHT FIRE THE PATIENT'S HEART STOPPED IMMEDIATELY THE PATIENT DIED AN HOUR LATER AFTER RESUSCITATION ATTEMPTS FAILED MR PINES SAID THE HEATCONTROL MECHANISM ON THAT MACHINE WAS 12 YEARS OLD THE COMPANY BASED IN OVERLAND PARK KAN RECOMMENDS THE MECHANISM BE REPLACED EVERY FIVE YEARS AT BROOKLYN'S MAIMONIDES HOSPITAL THE DAY BEFORE THE FATAL FIRE WORKERS RECEIVED SEVERE SHOCKS AFTER TOUCHING A BEDRAIL AND A POLE USED FOR INTRAVENOUS FLUID IN THE ROOM WHERE THE FIRE OCCURRED HOSPITAL OFFICIALS SAID THEY DON'T KNOW IF THE SHOCKS WERE RELATED TO THE FIRE HOWEVER THE EMPLOYEES WERE SUSPENDED FOR FAILURE TO REPORT THOSE INCIDENTS 9309150005 930915 CREDIT MARKETS BONDS PRICES SLIDE ON MODERATE RISE IN INFLATION AS AUGUST INDEX FALLS SHY OF MARKET EXPECTATION BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LIKE A PERSON EAGERLY AWAITING A BLIND DATE THE BOND MARKET CAN HAVE UNREALISTIC EXPECTATIONS WHILE ANTICIPATING AN ECONOMIC REPORT YESTERDAY A LARGERTHANEXPECTED RISE IN THE CONSUMER PRICE INDEX FOR AUGUST HIT INVESTORS ON THE CHIN THE INDEX IS A MEASURE OF INFLATION THE BANE OF BOND INVESTORS INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE PRICE INDEX ROSE 03 IN AUGUST ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT HAD EXPECTED AN INCREASE OF 01 THOUGH LARGER THAN EXPECTED THE INCREASE STILL PUTS INFLATION AT A RESPECTABLE 28 WHEN THE INDEX IS COMPARED TO AUGUST OF LAST YEAR BUT INVESTORS WERE EXPECTING SOMETHING BETTER WE'RE LIVING IN A RANGE OF INTEREST RATES THAT REQUIRES SOME PRETTY FABULOUS INFLATION NUMBERS SAID ROBERT V DICLEMENTE A DIRECTOR OF ECONOMIC RESEARCH AT SALOMON BROTHERS INC IT'S JUST PROOF THAT THIS IS DANGEROUS TERRITORY FOR THE BOND MARKET HE SAID WHAT THAT MEANS FOR INVESTORS IS THAT THE BOND MARKET TODAY NEEDS MUCH MORE BULLISH NEWS THAN JUST A COUPLE OF MONTHS AGO IN ORDER TO PROVIDE INVESTORS WITH THE SAME TYPES OF RETURNS ON THE OTHER HAND WITH RATES SO LOW 10YEAR TREASURY NOTES HIT THEIR LOWEST YIELDS IN 26 YEARS LAST WEEK IT DOESN'T TAKE MUCH BAD NEWS TO JOLT THE MARKET YESTERDAY WAS AN EXAMPLE THE CPI DATA REALLY ISN'T THAT BAD AT ALL HE SAID BUT TREASURY NOTES AND BONDS ARE TRADING AT YIELDS THAT SUGGEST ANNUAL INFLATION EXPECTATIONS CLOSER TO 25 BUT THE BOND MARKET HAS FALLEN TO INTEREST RATE LEVELS THAT REALLY AREN'T GOING TO TOLERATE EXCUSES HE EXPLAINED WE'RE PLAYING FOR BIG STAKES WITH 30YEAR BOND YIELDS BELOW 6 AND YOU NEED BETTER AND BETTER NEWS TO DO BETTER WITH BONDS PEOPLE HAD GOTTEN A LITTLE TOO EXUBERANT WITH REGARD TO THE INFLATION OUTLOOK SAID MARILYN SCHAJA MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP WE'RE MORE LIKELY TO BE SEEING THIS TYPE OF 02 OR 03 INCREASE FROM NOW ON AS OPPOSED TO THE ZERO OR 01 GAINS WE'VE SEEN OVER THE LAST TWO MONTHS PUSHING PRICES EVEN LOWER LATER IN THE DAY WAS A REPORT FROM THE COMMERCE DEPARTMENT SHOWING THAT RETAIL SALES ROSE 02 DURING THE MONTH IN CONTRAST TO EXPECTATIONS FOR A 01 DECLINE AS WITH THE CPI REPORT ANALYSTS PLAYED DOWN THE REPORT'S STRENGTH THE OVERALL OUTLOOK IS STILL FOR SLUGGISH GROWTH SAID MS SCHAJA OF DONALDSON LUFKIN & JENRETTE THE BOND MARKET HAS BECOME MUCH MORE JUMPY IN RECENT WEEKS OVER THE PAST FOUR TRADING SESSIONS FOR EXAMPLE 30YEAR BONDS HAVE HAD THREE PRICE MOVES OF MORE THAN A POINT TWO LOWER AND ONE HIGHER WE'RE IN UNCHARTED WATERS SAYS KEVIN FLANAGAN A MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC IT IS DIFFICULT FOR INVESTORS TO SEE WHERE WE ARE GOING FROM HERE ONE REASON FOR THE SKITTISHNESS IS THE DECLINE IN SOCALLED REAL INTEREST RATES THAT IS THE YIELD AFTER INFLATION HAS BEEN DISCOUNTED JUST A YEAR AGO THE REAL INTEREST RATE FOR INVESTORS BUYING 30YEAR TREASURY BONDS WAS ABOUT 425 YESTERDAY IT WAS ABOUT 310 REAL INTEREST RATES ACT LIKE A SHOCK ABSORBER FOR MOVES IN THE BOND MARKET SAID FRAZIER EVANS SENIOR ECONOMIST AT COLONIAL INVESTMENT SERVICES INC WHEN THEY ARE LOWER THE BOND MARKET CAN BE MUCH MORE VOLATILE HE SAID ACCORDING TO MR DICLEMENTE OF SALOMON BROTHERS THERE COULD BE SOME BIG BUMPS IN THE ROAD AHEAD FOR BOND INVESTORS IF THE NORTH AMERICAN FREE TRADE AGREEMENT ISN'T APPROVED FOR EXAMPLE IT WOULD BE A PSYCHOLOGICAL BLOW TO THE DISINFLATION ARGUMENT HE SAYS THAT'S BECAUSE THE CHEAPER GOODS AND LABOR OF MEXICO IF ALLOWED TO FLOW FREELY COULD PUSH PRICES DOWN EVEN FURTHER IN THE US THERE'S ALSO PRESIDENT CLINTON'S HEALTH REFORM PLAN SAYS MR EVANS OF COLONIAL BOND INVESTORS HAVE PAID LITTLE ATTENTION TO IT SO FAR BUT IF THEY BEGIN TO BELIEVE IT COULD BOOST GOVERNMENT SPENDING THE BOND MARKET COULD SUFFER IN ADDITION TO THE DATA TRADERS NOTED THE MARKET WILL SOON BE CONTENDING WITH A FRESH ROUND OF SUPPLY THIS AFTERNOON THE TREASURY IS SLATED TO ANNOUNCE THE SIZE OF NEXT WEEK'S REGULAR AUCTIONS OF TWOYEAR NOTES AND FIVEYEAR NOTES BUT MOST PEOPLE IN THE BOND MARKETS DID NOT CONSIDER YESTERDAY'S PRICE DROPS A MAJOR TURNING POINT FRANK RICCARDI SENIOR VICE PRESIDENT AT SOCIETY ASSET MANAGEMENT IN CLEVELAND WAS ONE OF THOSE BETTING THAT THE DECLINES MARKED A PAUSE IN THE MARKET AND NOT A REVERSAL OF THE BULLISH TREND I WOULD TEND TO VIEW THIS AS A NORMAL CORRECTION AFTER AN EXTRAORDINARY RUN SAID MR RICCARDI THE FUNDAMENTALS SUGGEST A WEAK ECONOMY NO PROBLEM WITH INFLATION AND THERE IS STILL A LOT OF MONEY THAN CAN BE THROWN INTO THE MARKET HE SAID I THINK THE DIRECTION OF RATES IN THE LONG END IS NOTICEABLY LOWER CORPORATE DEBT MARKETS WERE QUIET YESTERDAY AS PARTICIPANTS SAT BACK AND WATCHED PRICES FALL IN TANDEM WITH THOSE OF TREASURY SECURITIES THE GOVERNMENT MARKET PRICE DECLINE DESTROYED ANY OPPORTUNITY TO ISSUE PAPER LAMENTED ONE SYNDICATE OFFICIAL THE ONLY DEALS THAT CAME TO MARKET WERE TWO FROM THE ALLEGHENY GENERATING CO UNIT OF ALLEGHENY POWER SYSTEM INC THAT TOTALED 150 MILLION TRADING IN INVESTMENTGRADE ISSUES WAS FAIRLY ACTIVE AS YIELD SPREADS REMAINED UNCHANGED THOUGH PRICES DROPPED DRAMATICALLY AMONG LONG MATURITIES FOLLOWING THE TREND IN TREASURYS IN THE JUNK BOND SECTOR SECONDARY TRADING WAS QUIET AS INVESTORS CONTINUED TO FOCUS ON THE LARGE NEW ISSUE MARKET CALENDAR PRICES DROPPED ABOUT 1/4 POINT CONTINUING A TREND THAT STARTED ABOUT THREE WEEKS AGO THE MARKET IN GENERAL REMAINS WEAK TRADERS SAID MUNICIPAL BONDS FAILED TO RECOVER AFTER THEIR EARLY SLUMP AND MOST ACTIVELY TRADED ISSUES FINISHED WITH LOSSES OF 1/4 TO 5/8 POINT MUNIS AND OTHER US BONDS WHICH WERE VULNERABLE AFTER HEAVY BUYING IN RECENT WEEKS STUMBLED ON THE LATEST US ECONOMIC DATA WHILE THE DATA AREN'T SEEN AS EVIDENCE OF NEW INFLATION AND GROWTH PATTERNS THEY WERE ENOUGH TO TRIGGER WHAT IS VIEWED AS A SHORTLIVED WEAK SPELL FOR MUNIS OFFERINGS PRICED YESTERDAY INCLUDED THE NEBRASKA PUBLIC POWER DISTRICT'S 379 MILLION 1993 SERIES C POWER SUPPLY SYSTEM REVENUE REFUNDING BONDS A FIRST BOSTON CORP GROUP GAVE THE BONDS YIELDS THAT RANGE FROM 270 IN 1994 TO 534 IN 2017 MOODY'S INVESTORS SERVICE INC HAS RATED THE OFFERING SINGLEA1 AND STANDARD & POOR'S CORP IS EXPECTED TO ASSIGN A SINGLEAPLUS RATING MORTGAGE SECURITIES GAVE UP AS MUCH AS 1/2 POINT AFTER A RISE IN THE PRICE INDEX GAVE THE DEBT MARKETS REASON FOR PAUSE STILL THE YIELD GAP BETWEEN MORTGAGES AND TREASURYS NARROWED AMONG PRICES OF CURRENT COUPONS FOR OCTOBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 FELL 15/32 TO 99 62/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 ARE BOTH DOWN 17/32 POINT AT 98 10/32 AND 98 6/32 RESPECTIVELY IN PRIMARY DEALINGS TWO NEW REAL ESTATE INVESTMENT CONDUITS WERE ANNOUNCED FOR A TOTAL OF 850 MILLION THE DEALS WERE BACKED BY 20YEAR AND 30YEAR SECURITIES WITH 650 COUPONS THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9309150004 930915 ALLSTAR ANALYSTS 1993 SURVEY RESTAURANTS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BARRY M STOUFFER DINES OUT HE KEEPS ONE EYE ON CUSTOMERS AND THE OTHER ON HIS WATCH I'LL TIME HOW LONG IT TAKES FOR SOMEBODY TO TAKE MY ORDER SAYS THE RESTAURANT ANALYST AT JC BRADFORD IN NASHVILLE TENN HE STUDIES FELLOW DINERS FOR HINTS AT HOW THEY FEEL ABOUT THEIR FOOD ARE THEY EATING IT ALL ARE TOGO BOXES GOING OUT IS THERE AN ALIVE ATMOSPHERE THAT'S JUST ONE EXAMPLE OF HOW ALLSTAR RESTAURANT ANALYSTS TRY TO GET AN EDGE IN FOLLOWING THEIR INDUSTRY THE TOPRANKED STOCK PICKER LAST YEAR WAS JOHN W WEISS OF MONTGOMERY SECURITIES HE MADE BIG MONEY IN LONE STAR STEAKHOUSE & SALOON AND ALSO NOTCHED A LARGE GAIN IN SONIC A CHAIN OF DRIVEIN RESTAURANTS ONE OF MY THEORIES SAYS MR WEISS IS THAT CONSUMERS ARE CONCENTRATING THEIR VISITS AT A SMALLER AND SMALLER NUMBER OF RESTAURANTS THERE'S GREATER EMPHASIS ON A DESIRE FOR A COMPLETE DINING EXPERIENCE AND LESS FOCUS ON THE LOWEST PRICE POINT THE MONTGOMERY SECURITIES ANALYST REMAINS BULLISH ON BOTH LONE STAR STEAKHOUSE WHICH HIS FIRM BROUGHT PUBLIC AND SONIC HE ALSO RECOMMENDS FOODMAKER A TURNAROUND PLAY AFTER IT WAS HIT BY A FATAL FOODPOISONING EPISODE AT ITS JACKINTHEBOX CHAIN AND PAPA JOHN'S INTERNATIONAL A PIZZA CHAIN WHOSE PIZZA HE SAYS TASTES AS GOOD AS PIZZA HUT'S BUT IS CHEAPER LONE STAR SHINES HE SAYS NOT ONLY BECAUSE IT SERVES QUALITY STEAKS AT A MODERATE PRICE BUT ALSO BECAUSE OF THE CHAIN'S ECONOMICS WITH A HIGH SALESTOINVESTMENT RATIO AND FAT PROFIT MARGINS SONIC HE SAYS OFFERS QUALITY SUPERIOR TO TRADITIONAL FASTFOOD CHAINS ALONG WITH HAMBURGERS AND MALTS SONIC SELLS ONION RINGS AND OTHER ITEMS MISSING FROM COMPETITORS' MENUS CRAIG T WEICHMANN OF MORGAN KEEGAN IN MEMPHIS TENN RANKED SECOND WITH TASTY GAINS IN A WHOLE MENU OF RESTAURANT STOCKS INCLUDING APPLE SOUTH COOKER RESTAURANTS CRACKER BARREL MORRISON RESTAURANTS O'CHARLEY'S VICORP AND WALL STREET DELI HE TRIES TO FIND RESTAURANT CHAINS WITH HIGH OR IMPROVING PRODUCTIVITY POSITIVE SAMESTORE SALES AN ATTRACTIVE EXPANSION RATE AND STABLETORISING OPERATING MARGINS HE ALSO GAUGES WHAT HE CALLS AN AFFORDABILITY INDEX BASED ON DINNER TABS FOR HIS FAMILY OF SIX LATELY MR WEICHMANN HAS DEVELOPED A TASTE FOR SHONEY'S AND RYAN'S FAMILY STEAK HOUSES SHONEY'S MANAGEMENT PREVIOUSLY HELD BACK BY A FORMER CHAIRMAN WHO RETIRED UNDER FIRE IS WORKING HARD TO IMPROVE A STALE MENU TIRED DECOR AND HOHUM EMPLOYEE ATTITUDE MR WEICHMANN SAYS RYAN'S IS ON HIS BUY' LIST BECAUSE WE FEEL THE STOCK HAS BOTTOMED THE CHAIN IS GOING TO A SCATTERBAR SERVING FORMAT RATHER THAN A SINGLE LINE WHICH IMPROVES CUSTOMER PERCEPTION OF VALUE MR WEICHMANN STILL LIKES O'CHARLEY'S AND WALL STREET DELI AS WELL MR STOUFFER OF JC BRADFORD RANKED THIRD IN STOCK PICKING AMONG RESTAURANT ANALYSTS ON THE ALLSTAR ROSTER LIKE MR WEICHMANN HE HAD A LONG LIST OF WINNERS LAST YEAR AMONG THE BIGGEST WERE OUTBACK STEAKHOUSE MAX & ERMA'S RESTAURANTS APPLEBEE'S INTERNATIONAL AND MORRISON RESTAURANTS BESIDES VISITING RESTAURANTS HE ALSO POLLS BRADFORD'S SALES FORCE ON THEIR RESTAURANT EXPERIENCES AMONG HIS FAVORITES TODAY ARE CRACKER BARREL WHICH BRADFORD HELPED TAKE PUBLIC AND O'CHARLEY'S WHOSE SHARES HE CONSIDERS BARGAINPRICED STOCKS TO AVOID HE SAYS INCLUDE RYAN'S THEY'RE HAVING A HARD TIME SHOWING SAMESTORE SALES GAINS AND OUTBACK BECAUSE OF VALUATION 9309150003 930915 TECHNOLOGY SHARES OF GREENWICH PHARMACEUTICALS FALL ON DECISION BY FDA FORT WASHINGTON PA GREENWICH PHARMACEUTICALS INC'S STOCK LOST MORE THAN HALF ITS VALUE AFTER THE FOOD AND DRUG ADMINISTRATION TOLD THE COMPANY IT FAILED TO PROVE ITS ARTHRITIS DRUG THERAFECTIN IS SAFE AND EFFECTIVE IN ISSUING ITS NOT APPROVABLE LETTER THE FDA LEFT THE DOOR OPEN FOR GREENWICH TO SUPPORT ITS CLAIMS BEFORE AN ARTHRITIS ADVISORY COMMITTEE MEETING IN THE NEXT SIX MONTHS IN COMPOSITE OVERTHECOUNTER TRADING YESTERDAY GREENWHICH STOCK CLOSED AT 2875 A SHARE DOWN 3125 THE DRUGDEVELOPMENT COMPANY WHICH HAS BEEN WORKING 14 YEARS TO DEVELOP THE DRUG AS A TREATMENT FOR RHEUMATOID ARTHRITIS SAID THE FDA QUESTIONED A COMPANY CLINICAL STUDY CLAIMING EFFECTIVENESS IT SAID THE FDA PREVIOUSLY HADN'T DISAGREED WITH THE STUDY'S CONCLUSION THERAFECTIN A SYNTHETIC CARBOHYDRATE IS CHEMICALLY DIFFERENT FROM NONSTEROIDAL ANTIINFLAMMATORY DRUGS COMMONLY USED TO TREAT RHEUMATOID ARTHRITIS THE COMPANY SAID THERAFECTIN HASN'T BEEN ASSOCIATED WITH THE STOMACH PROBLEMS SOMETIMES ENCOUNTERED IN USUAL TREATMENTS GREENWICH SAID IT IS CONFIDENT THE ADVISORY COMMITTEE WILL RESOLVE THE DISPUTE WITH THE FDA WE REMAIN CONVINCED THAT THERAFECTIN WARRANTS FDA APPROVAL SAID EDWIN R THOMPSON CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE BUT HEMANT SHAH AN INDEPENDENT HEALTHCARE CONSULTANT IN WARREN NJ SAID THE ARTHRITIS ADVISORY COMMITTEE ALREADY HAS TWICE FAILED IN PRIVATE SESSIONS TO RECOMMEND APPROVAL OF THE DRUG IT WOULD BE VERY DIFFICULT TO REVIVE THIS DRUG HE SAID A SPOKESWOMAN FOR GREENWICH SAID THE COMMITTEE HASN'T BEEN ASKED TO MAKE A RECOMMENDATION TO THE FDA 9309150002 930915 SMALL STOCK FOCUS MARKET SLIPS FURTHER ON INFLATION NEWS BEARISH TECHNOLOGY FORECAST BY COMPAQ BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK A ONETWO PUNCH OF DISAPPOINTING INFLATION NEWS AND A BEARISH TECHNOLOGY FORECAST COMBINED TO KNOCK SMALL STOCKS LOWER THOUGH A MODEST AFTERNOON REBOUND SOFTENED THE DECLINE THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES CLOSED 198 POINTS OR 080 LOWER AT 24446 SETTING THE TONE WAS A REPORT THAT THE CONSUMER PRICE INDEX ROSE 03 IN AUGUST WHILE THE CORE RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY PRICES ALSO INCREASED 03 IN THE MONTH BOTH MEASURES EXCEEDED ESTIMATES A SURVEY BY DOW JONES CAPITAL MARKETS REPORT PRODUCED A CONSENSUS FORECAST OF AN INCREASE OF 01 FOR OVERALL CONSUMER PRICES AND NO CHANGE IN THE CORE RATE ALSO CONTRIBUTING TO THE NEGATIVE SENTIMENT WAS COMPAQ COMPUTER'S MONDAY ANNOUNCEMENT THAT IT EXPECTED PERSONAL COMPUTER SHIPMENTS TO BE RELATIVELY FLAT IN THE SECOND HALF OF 1993 MANY SMALLCAP STOCK OBSERVERS WEREN'T SURPRISED AT THE FEROCITY OF THE MARKET'S CORRECTION BASED ON THE CPI DATA BUT FEW SAID IT WAS THE START OF ANY SORT OF PROTRACTED DOWNTURN THIS IS JUST A SHORTTERM CORRECTION SAID GENE SEAGLE DIRECTOR OF TECHNICAL RESEARCH FOR GRUNTAL & CO THERE ARE A LOT OF NERVOUS NELLIES OUT THERE WE'VE GOT PLENTY OF LIFE LEFT IN THIS BULL MARKET SEVERAL PERSONAL COMPUTERRELATED STOCKS WERE HIT FOLLOWING COMPAQ'S COMMENTS ON MONDAY PCSEMICONDUCTOR MANUFACTURER ALTERA CORP DROPPED 1 1/2 TO 26 5/8 AND TSENG LABS INC FELL 1 TO 13 5/8 ALSO LOWER WERE KOMAG INC A DISKDRIVE MAKER WHICH SANK 1 1/4 TO 17 3/8 AND READRITE CORP A MANUFACTURER OF DISKDRIVE COMPONENTS WHICH DROPPED 5/8 TO 10 INVESTORS REMAIN PARTICULARLY SENSITIVE TO CORPORATE PROFITS AS COMPANIES PREANNOUNCE EARNINGS AND SALES INFORMATION TRADERS SAID DELTA QUEEN STEAMBOAT CO DROPPED 3 3/8 OR 18 TO 15 1/2 AFTER THE NEW ORLEANS CRUISE OPERATOR LOWERED ITS 1993 REVENUE OUTLOOK BECAUSE THIS SUMMER'S FLOODING ALONG THE MISSISSIPPI RIVER TRIGGERED A SPATE OF PASSENGER CANCELLATIONS NATIONAL COMPUTER SYSTEMS INC FELL 1 1/4 TO 14 1/2 THE COMPANY IN EDEN PRAIRIE MINN REVISED ITS SECONDQUARTER EARNINGS TO 27 CENTS A SHARE FROM 32 CENTS TO REFLECT THE REVERSAL OF A SUBSTANTIAL JULY SALE OF SCANNING HARDWARE TO THE VENEZUELAN GOVERNMENT ELSEWHERE GREENWICH PHARMACEUTICALS INC PLUNGED 3 1/8 OR 52 TO 2 7/8 THE DRUG MAKER IN FORT WASHINGTON PA SAID IT RECEIVED A NOT APPROVABLE LETTER ON MONDAY FROM THE FOOD AND DRUG ADMINISTRATION FOR ITS RHEUMATOID ARTHRITIS TREATMENT THERAFECTIN MOTHERS WORK INC DROPPED 1 7/8 TO 11 1/8 A STORY IN THIS NEWSPAPER YESTERDAY NOTED THAT ANOTHER MATERNITYWEAR COMPANY CONSIDERING GOING PUBLIC MIGHT HAVE PROBLEMS BECAUSE OF THE RECENT WEAKNESS IN MOTHERS WORK'S STOCK PRICE AMERICAN DEPOSITARY SHARES OF COCACOLA FEMSA SA NYSE JUMPED TO 22 1/4 FROM ITS OFFERING PRICE OF 20 1/2 THE MEXICAN COMPANY OFFERED 4922700 ADSS IN THE US AND 1640920 INTERNATIONALLY THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO EACH OF THE ADS UNITS REPRESENT 10 SERIES L SHARES AFTER THE MARKET CLOSED PAIRGAIN TECHNOLOGIES PRICED 415 MILLION SHARES AT 14 THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 12 AND 14 THE CERRITOS CALIF CONCERN PROVIDES TELECOMMUNICATIONS PRODUCTS BASED IN HIGH BITRATE DIGITAL SUBSCRIBER TECHNOLOGY THE COMPANY'S PRODUCTS ARE FOR TELECOMMUNICATIONS CARRIERS AND PRIVATE NETWORKS TO ALLOW THEM TO PROVIDE HIGH SPEED DIGITAL SERVICE TO USERS 9309150001 930915 HOUSE PANEL CLEARS MEASURE TARGETING BIAS IN INSURANCE WASHINGTON THE HOUSE ENERGY AND COMMERCE COMMITTEE VOTED TO REQUIRE INSURANCE COMPANIES TO REPORT SALES INFORMATION ON AUTO AND HOMEOWNERS' POLICIES TO HELP REGULATORS SPOT POSSIBLE DISCRIMINATION IF ENACTED INTO LAW THE REQUIREMENTS WOULD BE A STEP BY THE FEDERAL GOVERNMENT TO IMPOSE NEW RULES ON THE INSURANCE INDUSTRY TRADITIONALLY STATEREGULATED THE ANTIREDLINING IN INSURANCE DISCLOSURE ACT IS INTENDED TO COMPLEMENT THE HOME MORTGAGE DISCLOSURE ACT WHICH REVEALED A BROAD PATTERN OF BANKLENDING DISCRIMINATION AGAINST MINORITIES TRYING TO BUY HOMES THAT ACT SPURRED STIFFER FEDERAL POLICING OF FAIRLENDING LAWS CONSUMER GROUPS CONTEND INSURERS OFTEN DISCRIMINATE AGAINST MINORITIES AS WELL THE COMMITTEEAPPROVED BILL WOULD REQUIRE THE 25 LARGEST INSURERS IN THE 25 LARGEST METROPOLITAN AREAS TO REPORT TO THE COMMERCE SECRETARY CERTAIN SALES DATA BY ZIP CODE STARTING IN 1995 THE FEDERAL GOVERNMENT WOULD THEN MAKE THE INFORMATION PUBLIC THE BILL'S SPONSOR DEMOCRATIC REP CARDISS COLLINS OF ILLINOIS SAID THE LEGISLATION WOULD PROVIDE A SIGNIFICANT AMOUNT OF DATA THAT IS SIMPLY NOT PUBLICLY AVAILABLE TODAY BUT CONSUMERS UNION AND SEVERAL OTHER GROUPS ACCUSED THE PANEL OF WATERING DOWN THE LEGISLATION IN RESPONSE TO INDUSTRY LOBBYING THE PANEL AMONG OTHER THINGS REDUCED TO 25 FROM 150 THE NUMBER OF CITIES WHERE INSURERS MUST COLLECT DATA AND IT ELIMINATED A REQUIREMENT THAT THE INSURERS REPORT RACIAL DATA THE INDUSTRY WAS DIVIDED ON THE BILL BUT MANY MAJOR COMPANIES SUPPORTED THE FINAL VERSION THE LEGISLATION MUST BE RECONCILED WITH A TOUGHER VERSION NOW BEFORE THE HOUSE BANKING COMMITTEE AND THEN APPROVED BY THE FULL HOUSE THE SENATE HASN'T YET TAKEN UP THE ISSUE 9309150135 930819 COUNTERPOINT A NEW LEASE ON LIFE FOR RENT CONTROL BY JOHN I GILDERBLOOM THE AMOUNT OF TENANTS' INCOME GOING INTO RENT IS AT RECORD LEVELS HALF ARE PAYING RENTS CONSIDERED UNAFFORDABLE BY TRADITIONAL GOVERNMENT STANDARDS OVER ONEQUARTER OF RENTER HOUSEHOLDS DEVOTE AT LEAST HALF THEIR INCOME TO RENT SINCE 1970 RENTS HAVE QUADRUPLED WHILE TENANTS' INCOME HAS ONLY DOUBLED RENT CONTROL COULD BRING TEMPORARY RELIEF OFFERING TENANTS PROTECTION FROM EXTREME RENT INCREASES UNJUST EVICTIONS AND POOR MAINTENANCE ROUGHLY 150 CITIES AND COUNTIES CURRENTLY HAVE SOME FORM OF RENT CONTROL COVERING AN ESTIMATED 10 OF THE NATION'S HOUSING STOCK PROPERLY APPLIED IT CAN RESULT IN THE CREATION OF AFFORDABLE HOUSING UNITS AND IMPROVE NEIGHBORHOOD STABILITY NEW YORK CITY IS TYPICALLY CITED AS THE TEXTBOOK EXAMPLE OF WHY CONTROLS DO NOT WORK STRINGENT RENT CONTROLS ADOPTED AFTER WORLD WAR II EFFECTIVELY FROZE RENTS OVER TWO DECADES THE LAW ENTIRELY ONESIDED IN FAVOR OF TENANTS DISCOURAGED INVESTMENT IN RENTAL HOUSING AND LOWERED CONSTRUCTION MAINTENANCE AND OVERALL RENTAL PROPERTY VALUE BUT MAKING A GENERALIZATION ABOUT RENT CONTROL BASED SOLELY ON THE NEW YORK CITY EXAMPLE IS LIKE TRYING TO ARGUE THAT ALL CARS ARE BAD BY POINTING TO THE EDSEL TAKING INTO ACCOUNT THE NEW YORK CITY MISTAKES MODERATE RENT CONTROL LAWS WERE INTRODUCED IN MORE THAN 100 CITIES DURING THE EARLY 1970S THESE LAWS GUARANTEE LANDLORDS A FAIR AND REASONABLE RETURN THAT IS COMPETITIVE WITH OTHER KINDS OF INVESTMENTS WITH SIMILAR RISKS MOST OF THESE LAWS EXEMPT NEW CONSTRUCTION REQUIRE ADEQUATE MAINTENANCE AS A CONDITION OF RENT INCREASES GUARANTEE ANNUAL INCREASES AND NECESSARY INCREASES TO COVER OPERATING COSTS AND PROVIDE FOR PASSTHROUGHS OF MAJOR CAPITAL COST INCREASES NEW JERSEY OFFERS A GOOD EXAMPLE OF HOW THESE MODERATE CONTROLS WORK HOUSING CENSUS DATA TAKEN FROM 1970 TO 1990 IN 75 RENTCONTROLLED AND 50 NONRENTCONTROLLED CITIES IN THE STATE SHOW NEITHER A NEGATIVE IMPACT ON NEW CONSTRUCTION NOR OVERCROWDING NOR PLUMBING DEFICIENCIES RENTCONTROLLED TENANTS SAVED AN AVERAGE OF 53 A MONTH NO EVIDENCE CAN BE FOUND THAT THE MIX OF TENANTS IN RENTCONTROLLED UNITS HAS SHIFTED TO HIGHERINCOME PEOPLE THESE LAWS WORK TO STABILIZE RENTS AND PROVIDE A MODICUM OF RELIEF IN THE 1980S SEVERAL CALIFORNIA CITIES TRIED TO DESIGN A RENT CONTROL LAW THAT WOULD AVOID THE EXCESSES OF NEW YORK CITY'S LAW AND THE WEAKNESSES OF NEW JERSEY'S REGULATIONS TYPICALLY THESE CALIFORNIA LAWS PUT MORE TEETH IN THE ORDINANCE BY HOLDING RENT INCREASES TO APPROXIMATELY ONEHALF THE INCREASES IN THE CONSUMER PRICE INDEX PROHIBIT DECONTROL WHEN A UNIT IS VACATED INCLUDE TOUGH ENFORCEMENT MECHANISMS AND PROVIDE FOR A RENT CONTROL BOARD MADE UP LARGELY OF TENANT ACTIVISTS SANTA MONICA'S 14YEAROLD LAW ILLUSTRATES THE REDISTRIBUTIVE FUNCTION OF THESE RENT REGULATIONS A REPORT CONDUCTED FOR THE CALIFORNIA STATE SENATE ESTIMATES THAT THE PERCENTAGE OF RENTERS PAYING 30 OR MORE OF THEIR INCOMES ON HOUSING WILL FALL FROM 48 IN 1986 TO 29 IN 1997 THE REPORT ESTIMATES THAT UNDER SANTA MONICA'S STRONG RENT CONTROL LAW RENTS WILL INCREASE FROM AN AVERAGE OF 458 A MONTH IN 1988 TO 631 IN 1997 WITHOUT CONTROLS RENTS WOULD SKYROCKET TO 1123 A MONTH BY 1997 IN THIS SMALL CALIFORNIA COASTAL CITY OF 87000 TENANTS WILL SAVE CLOSE TO 11 BILLION OVER A 10YEAR PERIOD A 1990 STUDY PUBLISHED IN THE JOURNAL OF THE AMERICAN PLANNING ASSOCIATION FOUND THAT THE ECONOMIC COMPOSITION OF SANTA MONICA RENTERS INCLUDING THE PERCENTAGE OF POOR TENANTS HAS NOT CHANGED SINCE THE ENACTMENT OF RENT CONTROL WITH MORE MONEY TO SPEND IN THE LOCAL ECONOMY RENT CONTROL HAS HELPED FOSTER A BOOM IN COMMERCIAL BUSINESSES AND A SPINOFF OF INCREASED JOBS BEYOND THE TREMENDOUS AMOUNT OF MONEY TENANTS CAN SAVE RENT CONTROL IN SANTA MONICA IS CREATING GREATER NEIGHBORHOOD STABILITY SURVEYS SHOW THAT TENANTS RESIDE IN RENTCONTROLLED UNITS TWICE AS LONG AS IN NONRENT CONTROLLED APARTMENTS THIS LEADS TO STRONGER SOCIAL BONDS AND REDUCES NEIGHBORHOOD CRIME IN THE WAKE OF RECORD LOW INTEREST RATES LANDLORD PROFITS HAVE RISEN SIGNIFICANTLY DUE TO REFINANCING WHILE TENANTS THROUGHOUT THE NATION HAVE WITNESSED A STEADY INCREASE IN RENTS THIS IS INEQUITABLE BECAUSE THE FEDERAL GOVERNMENT ORCHESTRATED LOWER INTEREST RATES SO THAT EVERYONE COULD GET SOME RELIEF LANDLORDS SHOULD SHARE THEIR MORTGAGE COST SAVINGS WITH TENANTS THE REAL LESSON FROM CALIFORNIA'S TAX SLASHING MEASURE PROPOSITION 13 IS THAT LANDLORDS ARE UNWILLING TO PASS SAVINGS ALONG EVEN IN A TIME OF NATIONAL SACRIFICE RENT CONTROL COULD HELP BRING SOME FAIRNESS TO THIS SITUATION RENT CONTROL IS NOT THE ULTIMATE SOLUTION HOWEVER IT IS MERELY A STOPGAP MEASURE THAT CREATES A BETTER BALANCE OF POWER BETWEEN TENANT AND LANDLORD THE BEST KIND OF RENT CONTROL IS HOME OWNERSHIP HIGH RENTS REFLECT HOME PRICES THAT ARE CURRENTLY OUT OF REACH FOR FAR TOO MANY AMERICANS IF MORE AFFORDABLE HOUSING IS BUILT RENTS WILL BE HELD DOWN IN LOUISVILLE KY FOR EXAMPLE HOUSE AND APARTMENT PRICES RANK AMONG THE LOWEST OF ANY US CITY WITH A POPULATION OF MORE THAN 100000 WHY BECAUSE A CONCERTED EFFORT HAS BEEN MADE BY THE CITY BUSINESS GROUPS COMMUNITY ORGANIZATIONS AND COLLEGES TO PRODUCE AND RENOVATE HOUSING FOR SALE TO LOW AND MODERATE INCOME PEOPLE IN LOUISVILLE A ONEBEDROOM CONDOMINIUM GOES FOR AS LITTLE AS 18900 AND ATTRACTIVE THREEBEDROOM TWOBATH COTTAGESTYLE HOMES SELL FOR AS LITTLE AS 45000 IF MORE CITIES WERE TO CONCENTRATE THEIR EFFORTS ON PROMOTING HOME OWNERSHIP OPPORTUNITIES RENT CONTROL WOULD BECOME A SECONDARY ISSUE PRESIDENT CLINTON'S AUG 3 ADDRESS TO THE NATION POINTED OUT THAT HOMEOWNERS WERE GETTING RELIEF FROM HIGH HOUSING COSTS THROUGH LOWERED INTEREST RATES HE ESTIMATED THAT ON A 100000 MORTGAGE REFINANCING THE LOAN FROM 10 TO 75 COULD SAVE A HOMEOWNER 175 A MONTH HE NEGLECTED TO MENTION HOW ACCORDING TO A 1992 ESTIMATE OF THE JOINT COMMITTEE ON TAXATION THE FEDERAL GOVERNMENT WILL PROVIDE HOMEOWNERS WITH A 75 BILLION SUBSIDY IN THE FORM OF MORTGAGE AND TAX WRITEOFFS THIS YEAR COMPARE THIS TO THE 9 BILLION A YEAR IN FEDERAL EXPENDITURES ON SUBSIDIZED HOUSING FOR THE POOR WHERE IS THE RELIEF FOR TENANTS RENT CONTROL IS THE ONE PLAUSIBLE PROGRAM THAT COULD PRODUCE SHORTTERM RELIEF A CONCERTED EFFORT TO CREATE MORE HOME OWNERSHIP OPPORTUNITIES IS THE ONLY LONGTERM SOLUTION MR GILDERBLOOM IS ASSOCIATE PROFESSOR OF ECONOMICS AND URBAN POLICY AT THE UNIVERSITY OF LOUISVILLE HE IS COAUTHOR OF COMMUNITY VERSUS COMMODITY TENANTS AND THE AMERICAN CITY STATE UNIVERSITY OF NEW YORK PRESS SEE RELATED LETTERS LETTERS TO THE EDITOR RENT CONTROL AS A CIVIC RELIGION WSJ SEPT 15 1993 9308190130 YY93 MM09 9309150124 930726 FORD TO RECALL CONTINENTALS AND TAURUS SABLE SEDANS DETROIT FORD MOTOR CO SAID IT'S RECALLING A TOTAL OF ABOUT 500000 1986TO1988MODEL TAURUS AND SABLE SEDANS AND 1988MODEL LINCOLN CONTINENTALS BECAUSE SALT AND MOISTURE CAN EAT THROUGH THE SUBFRAMES THAT HOLD THE CARS' ENGINES AND TRANSMISSIONS IN PLACE FORD HAS 19 REPORTS OF THE SUBFRAMES COMING LOOSE AND DROPPING AN INCH OR TWO ONTO THE MAIN VEHICLE FRAME WHEN THIS HAPPENS THE CARS BECOME DIFFICULT TO STEER FORD SAYS TWO ACCIDENTS HAVE BEEN REPORTED BUT NO INJURIES ACCORDING TO THE COMPANY TO REPAIR THE VEHICLES A REINFORCEMENT PLATE WILL BE INSTALLED TO ENSURE THAT THE SUBFRAME REMAINS IN PLACE THE RECALL IS LIMITED ONLY TO CARS SOLD OR CURRENTLY IN USE IN 14 UPPER MIDWESTERN AND NORTHEASTERN STATES WHERE SALTING ROADS IN WINTERTIME IS COMMON LARGE AMOUNTS OF ROAD SALTS AND MOISTURE CAN LOOSEN EITHER OR BOTH REAR MOUNTS OF THE SUBFRAME THE RECALL IS LIMITED TO VEHICLES IN MAINE VERMONT CONNECTICUT RHODE ISLAND MASSACHUSETTS NEW HAMPSHIRE NEW YORK NEW JERSEY PENNSYLVANIA WISCONSIN MICHIGAN ILLINOIS INDIANA AND OHIO THE COMPANY SAID THAT IT'S NOTIFYING OWNERS OF THE VEHICLES BY MAIL AND THAT THE REPAIRS WILL BE MADE AT NO CHARGE TO THE CUSTOMER SEE RELATED LETTER LETTERS TO THE EDITOR NOT WORTH THEIR SALT WSJ SEPT 15 1993 9307260133 YY93 MM09 9309140169 930914 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS SEPT 1427 THE FIRST MUSEUM TO SURVEY THE ART OF THE AMERICAS WILL OPEN ON SEPT 26 THE NEW GALLERIES WILL FEATURE MORE THAN 6000 WORKS OF ART FROM NORTH CENTRAL AND SOUTH AMERICA DATING FROM PRECOLOMBIAN TIMES THROUGH THE MID20TH CENTURY THE COLLECTION INCLUDES OLMEC AND MAYA STONE SCULPTURE FROM MEXICO CHAVIN AND NASCA CERAMICS FROM PERU GOLD ORNAMENTS FROM COLUMBIA PANAMA PERU AND COSTA RICA AND PRECOLONIAL AS WELL AS 18TH AND 19THCENTURY PAINTINGS FROM NORTH AMERICA DALLAS MUSEUM OF ART 1717 N HARWOOD 214 9221200 DRAWN FROM PUBLIC AND PRIVATE COLLECTIONS THROUGHOUT GEORGIA 60 IMPRESSIONIST PAINTINGS AND DRAWINGS WILL BE ON DISPLAY THE EXHIBITION FEATURES THE WORK OF MARY CASSATT CHILDE HASSAM RICHARD MILLER AND THEODORE ROBINSON AS WELL AS REGIONAL ARTISTS SUCH AS AGNES RICHMOND LILLA CABOT PERRY AND ALLEN TUCKER GEORGIA MUSEUM OF ART UNIVERSITY OF GEORGIA THROUGH NOV 14 THE ACKNOWLEDGED SOURCE OF INSPIRATION FOR SURREALIST MASTERS SUCH AS MIRO DALI AND MAGRITTE ERNST WAS BORN IN GERMANY 100 YEARS AGO THIS TRIBUTE SURVEYS A WIDE RANGE OF WORK MUCH OF IT INSPIRED BY FREUDIAN CONCEPTS OF THE SUBCONSCIOUS PAINTINGS DRAWINGS AND PRINTS AS WELL AS PIECES INVOLVING PHOTOMONTAGE OVERPAINTING AND FROTTAGE THE RUBBING TECHNIQUE ERNST INVENTED ART INSTITUTE OF CHICAGO 111 S MICHIGAN AVE SEPT 18NOV 30 THIS RETROSPECTIVE CELEBRATES THE WORK OF THE MOST FAMOUS FEMALE PAINTER OF THE DUTCH GOLDEN AGE OF REMBRANDT AND HALS LEYSTER'S SCENES FROM EVERYDAY LIFE GAINED HER ADMITTANCE INTO THE ARTIST'S GUILD BUT HER NAME DROPPED OUT OF ART HISTORY AFTER HER DEATHUNTIL SHE WAS REDISCOVERED 100 YEARS AGO THE SEASON OPENS ON SEPT 27 WITH A CELEBRATION OF THE 25TH ANNIVERSARIES OF THE MET DEBUTS OF PLACIDO DOMINGO AND LUCIANO PAVAROTTI THE TENORS WILL PERFORM ACTS FROM WAGNER'S DIE WALKURE AND FROM VERDI'S OTELLO AND IL TROVATORE THE CAST ALSO INCLUDES VLADIMIR CHERNOV KALLEN ESPERIAN WALTRAUD MEIER SHERRILL MILNES PAUL PLISHKA HANS SOTIN AND DOLORA ZAJICK JAMES LEVINE CONDUCTS METROPOLITAN OPERA HOUSE LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS 212 3626000 THE COMPANY OFFERS THE NEW YORK PREMIERE OF SIR MICHAEL TIPPETT'S THE MIDSUMMER MARRIAGE SEPT 14 22 OCT 2 THE OPERA INSPIRED BY SHAKESPEARE'S A MIDSUMMER NIGHT'S DREAM AND MOZART'S THE MAGIC FLUTE IS ABOUT THE STRUGGLES OF TWO PAIRS OF LOVERS THE PRODUCTION FEATURES NINA WARREN AS JENIFER ELIZABETH FUTRAL AS BELLA DENNIS MCNEIL AS MARK BRAD CRESSWELL AS JACK AND JAN OPALACH AS KING FISHER FRANCESCA ZAMBELLO IS THE DIRECTOR CHRISTOPHER KEENE CONDUCTS NEW YORK STATE THEATER LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS 212 8705570 WOLFGANG SAWALLISCH MARKS HIS ARRIVAL AS THE ORCHESTRA'S NEW MUSIC DIRECTOR WITH A FIVECONCERT OPENINGWEEK FESTIVAL SEPT 1419 THE OPENINGNIGHT GALA CONCERT FEATURES AMERICAN COMPOSITIONS AARON COPLAND'S FANFARE FOR THE COMMON MAN AND NED ROREM'S EAGLES MR SAWALLISCH AND THE ORCHESTRA THEN TRAVEL TO NEW YORK TO OPEN THE SEASON AT CARNEGIE HALL WITH MIDORI PERFORMING THE SIBELIUS VIOLIN CONCERTO SEPT 23 ACADEMY OF MUSIC BROAD AND LOCUST STREETS 215 8931999 9309140168 930914 REAL ESTATE BY MITCHELL PACELLE OFFICEBUILDING OWNERS WHO SURVIVED THE OVERBUILDING OF THE 1980S HAVE A FORMIDABLE NEW FOE CORPORATE DOWNSIZINGS VACANCY RATES HAVE SHOT UP IN SOME MARKETS AS COSTCUTTING CORPORATIONS HAVE BEGUN SHEDDING SPACE AS AGGRESSIVELY AS JOBS IN HOUSTON FOR EXAMPLE FIRST CITY BANCORPORATION OF TEXAS VACATED ABOUT 900000 SQUARE FEET IN FOUR BUILDINGS IN THE CENTRAL BUSINESS DISTRICT CONTRIBUTING TO A JUMP IN THE VACANCY RATE TO 266 IN THE SECOND QUARTER FROM 242 IN THE FIRST QUARTER IT WAS THE LARGEST SECONDQUARTER INCREASE IN ANY METROPOLITAN AREA TRACKED BY NATIONAL BROKERAGE FIRM CUSHMAN & WAKEFIELD IT'S BEEN TOUGH ON BUILDING OWNERS BECAUSE 2 1/2 YEARS AGO THEY WERE EXPECTING THINGS TO GET BETTER AND POSSIBLY SEE SOME RENT INCREASES SAYS JAMES PETERS HEAD OF THE FIRM'S HOUSTON OFFICE OVER THE PAST SEVERAL YEARS INTERNATIONAL BUSINESS MACHINES HAS VACATED 17 MILLION SQUARE FEET OF SPACE IN WESTCHESTER COUNTY NY AND IT HAS ANNOUNCED PLANS TO SHED EVEN MORE THERE THE VACANCY RATE IN WESTCHESTER COUNTY HAS CLIMBED TO ABOUT 20 FROM LESS THAN 10 IN THE MID1980S ACCORDING TO NEW YORKBASED COMMERCIAL REAL ESTATE BROKERAGE EDWARD S GORDON CO ABOUT ONEQUARTER OF ALL AVAILABLE OFFICE SPACE IN THE COUNTY WAS ONCE OCCUPIED BY IBM SOME OF THE BUILDINGS THAT WERE HEADED TOWARD RECOVERY WEREN'T EXPECTING TO COMPETE WITH THIS SPACE SAYS MICHAEL SIEGEL HEAD OF GORDON'S WESTCHESTER OFFICE THE LOS ANGELES CENTRAL BUSINESS DISTRICT IS EXPECTED TO EXPERIENCE SIMILAR PRESSURES AS BANKAMERICA VACATES ABOUT 700000 SQUARE FEET OF OFFICE SPACE BECAUSE OF ITS MERGER WITH SECURITY PACIFIC INCLUDING THAT BANK'S FORMER HEADQUARTERS TRADITIONAL RESIDENTIAL BROKERS HAVEN'T EXACTLY ROLLED OUT THE RED CARPET FOR DISCOUNT BROKERS WHO REPRESENT SELLERS FOR REDUCED COMMISSIONS AND BROKERS WHO REPRESENT BUYERS EXCLUSIVELY DISCRIMINATION AGAINST ALTERNATIVE BROKERS BY TRADITIONAL BROKERS IS WIDESPREAD ACCORDING TO A SURVEY OF 85 ALTERNATIVE BROKERS IN 17 MAJOR METROPOLITAN AREAS BY THE CONSUMER FEDERATION OF AMERICA AN ASSOCIATION OF CONSUMER GROUPS SIXTY PERCENT SAID THEIR BUSINESSES HAD BEEN DISPARAGED TO CLIENTS BY TRADITIONAL BROKERS 45 REPORTED ANGRY CRITICISM OR PERSONAL THREATS 35 SAID PUBLICATIONS HAD REFUSED TO RUN THEIR ADS AND 30 SAID TRADITIONAL BROKERS HAD REFUSED TO SHOW HOMES THEY HAD LISTED TRADITIONAL BROKERS TYPICALLY COLLECT A 6 OR 7 FEE FROM SELLERS FOR FINDING BUYERS THE BROKER WHO OBTAINS A LISTING OFTEN SPLITS THE FEE WITH ANOTHER TRADITIONAL BROKER WHO FINDS A BUYER DISCOUNT BROKERS REPRESENT SELLERS FOR 4 OR 5 OR A FLAT FEE BUYER BROKERS EXPECT TO SPLIT THE FEE WITH LISTING BROKERS FOR NEGOTIATING A DEAL ON BEHALF OF A BUYER THE GOOD NEWS IS THAT DISCRIMINATION IS LESSENING SAYS CFA EXECUTIVE DIRECTOR STEPHEN BROBECK THE BAD NEWS IS THAT IT'S STILL WIDESPREAD HE CITED MINNEAPOLIS AS ONE CITY WHERE IT IS A PROBLEM BUYER BROKER STEELE PROPP PRESIDENT OF THAT CITY'S BUYER'S RESOURCE METRO REALTY COMPLAINS OUR INDUSTRY IS VERY RESISTANT TO CHANGE SOME TRADITIONAL BROKERS DISMISS THE SURVEY AS UNSCIENTIFIC AND COMPLAIN THAT NEITHER TRADITIONAL BROKERS NOR CONSUMERS WERE QUESTIONED THIS IS A CASE OF SOUR GRAPES ON BEHALF OF ALTERNATIVE BROKERS SAYS LEONARD MACKINNON A SPOKESMAN FOR BURNET REALTY OF MINNEAPOLIS I CAN'T TELL YOU THERE IS NO DISCRIMINATION BUT I CAN TELL YOU OUR COMPANY ISN'T DOING IT THE PLUNGE IN HOTEL VALUES MAY FINALLY BE OVER THE AVERAGE SELLING PRICE PER ROOM EDGED UP 2 TO 18741 IN 1992 FROM 18400 IN 1991 ACCORDING TO THE HOTEL & MOTEL BROKERS OF AMERICA STILL PRICES WERE 21 BELOW THE 1988 PEAK OF 23630 A ROOM LAST YEAR 195 PROPERTIES WERE SOLD BY THE 150MEMBER TRADE GROUP UP FROM 170 IN 1991 AND JUST 101 IN 1990 MEMBERS ACCOUNT FOR 25 OF ALL HOTEL SALES IN THE NATION PRIMARILY MIDMARKET FRANCHISED PROPERTIES LIKE HOLIDAY INNS AND RAMADAS SALES ARE BOOMING BECAUSE WE'RE AT THE BOTTOM OF THE PRICING AND THERE'S A LOT OF VALUE SAYS PATRICK FORD OF PORTSMOUTH NH'S NATIONAL HOTEL REALTY ADVISORS AUTHOR OF THE REPORT YOU CAN BUY THEM CHEAPER THAN YOU CAN BUILD THEM THE REPORT CAUTIONS HOWEVER THAT THE MARKET MAY SEE A FEW DOWNWARD SPIKES BEFORE PRICES FIRM AND AN UPTURN TREND TAKES HOLD THE HOTEL MARKET WAS SEVERELY OVERBUILT IN THE 1980S THEN HAMMERED BY RECESSION SINCE LATE 1991 HOWEVER OCCUPANCY RATES HAVE BEEN CLIMBING ALBEIT SLOWLY MOST OPERATORS HAVE YET TO RAISE ROOM RATES CONSIDERED CRUCIAL TO AN INDUSTRYWIDE RETURN TO PROFITABILITY WITH THE EXCEPTION OF THE NORTHEAST AND THE WEST THE HOTEL MARKET HAS HIT BOTTOM AND IS RECOVERING SAYS DONALD WISE SENIOR HOTEL BROKER FOR LOS ANGELESBASED CB COMMERCIAL REAL ESTATE GROUP MR FORD SAYS THE MARKET FOR MIDSIZE HOTELS AND MOTELS IS AWASH WITH BUYERS BUT THE MARKET FOR LARGER HOTELS IS MARKEDLY SLOWER ONLY 22 HOTELS SOLD FOR MORE THAN 10 MILLION APIECE IN 1992 DOWN FROM 42 IN 1991 SAYS HOSPITALITY VALUATION SERVICES A HOTEL CONSULTING COMPANY IN MINEOLA NY THE LENDERS THAT AREN'T UNDER DURESS HAVE DECIDED TO HOLD ONTO THE PROPERTIES AND WAIT FOR THE VALUES TO INCREASE EXPLAINS HVS PRESIDENT STEPHEN RUSHMORE THE FORMER BEVERLY HILLS CALIF ESTATE OF SILENT SCREEN STAR HAROLD LLOYD RECENTLY SOLD FOR 20 MILLION BILLED BY SOTHEBY'S INTERNATIONAL REALTY A UNIT OF SOTHEBY HOLDINGS AS THE HIGHEST RESIDENTIAL SALES PRICE IN THE US IN MORE THAN THREE YEARS TO LURE MORE OUTSIDE TENANTS TO ITS HEADQUARTERS OFFICE PARK IN DANBURY CONN UNION CARBIDE HAS CHANGED THE NAME FROM CARBIDE CENTER TO CORPORATE CENTER 9309140167 930914 THE GLOBAL STAKES OF FREE TRADE BY KAREN ELLIOTT HOUSE HONG KONG NO ISLAND IS AN ISLAND THIS ISLAND TRADING CENTER LIKE THE REST OF THE BOOMING ASIAN REGION IS A LONG WAY FROM THE RIO GRANDE BUT SHOCK WAVES FROM THE ALLTOOLIKELY IMPLOSION OF THE NORTH AMERICAN FREE TRADE AGREEMENT WILL BE QUICKLY FELT ALL ACROSS THE PACIFIC WITH DAMAGING ECONOMIC CONSEQUENCES NOT ONLY FOR ASIA BUT FOR ITS LARGEST TRADING PARTNER THE US AS WASHINGTON DEBATES THE IMPORTANCE OF NAFTA IN TERMS OF ITS IMPACT ON BLUECOLLAR JOBS ENVIRONMENTAL REGULATION AND DOMESTIC POLITICS THE FAR LARGER RAMIFICATIONS OF THE TREATY'S IMPENDING DEMISE TO THE ENTIRE GLOBAL TRADING SYSTEM ARE BEING OVERLOOKED BOTH IN THE US AND AMONG ITS ASIAN TRADING PARTNERS THE DANGER IF AN ALLIANCE OF AMERICAN PROTECTIONISTS CAN DEFEAT A FREETRADE TREATY WITH A NEXTDOOR NEIGHBOR WITH WHOM AMERICA ENJOYS A HEALTHY TRADE SURPLUS THE LOGIC IS ALMOST INEXORABLE THAT THE NEXT TARGETS OF EMBOLDENED PROTECTIONISTS WILL BE THE DISTANT ASIAN NATIONS WITH WHOM AMERICA HAS THE LARGEST TRADE DEFICITS JAPAN AND CHINA JAPAN'S RECESSION AND CHINA'S RECENT DECISION TO SLOW ECONOMIC GROWTH TO DAMP INFLATION MEAN NEITHER COUNTRY IS LIKELY TO IMPORT MORE FROM AMERICA SOON AND IF TRADE WARS ENSUE AMONG THE GLOBE'S THREE LARGEST ECONOMIES THE US JAPAN AND CHINA FALLOUT WILL POISON ECONOMIES ON EVERY CONTINENT IN SHORT IF AN AMERICAN HOMEOWNER IS WILLING TO CASUALLY BLUDGEON THE NEXTDOOR NEIGHBOR WITH WHOM HE SHARES A COMMON FRONT YARD WHAT SELFRESTRAINT WILL PREVENT HIS MUGGING LESS FAMILIAR RESIDENTS DOWN THE ROAD IRONICALLY THESE POTENTIAL ASIAN VICTIMS CAUGHT UP IN THE HUBRIS OF THEIR OWN ECONOMIC MIRACLES SEEM REMARKABLY OBLIVIOUS TO THE MUGGING THAT MAY LIE AHEAD IN THEIR MYOPIC VIEW NAFTA HAS LONG BEEN SEEN AS GIVING AN ADVANTAGE TO MEXICO AT THEIR EXPENSE IN THE CRITICALLY IMPORTANT US MARKET SO THE INITIAL ASIAN REACTION TO NAFTA'S TROUBLES IS RELIEF BUT THIS JEALOUSY OF MEXICO HAS MERELY SERVED TO BLIND THEM TO LARGER DANGERS IF MEXICO IS JILTED ASIA IS MUCH MORE LIKELY TO BE ABUSED THAN EMBRACED BY POTOMAC PROTECTIONISTS FOR ALL OF THE GROWTH IN INTRAASIAN TRADE IN RECENT YEARS THE US REMAINS ASIA'S SINGLE LARGEST MARKET ACCOUNTING ON AVERAGE FOR 30 OF THE EXPORTS OF ASIAN COUNTRIES BY THE SAME TOKEN ASIA AS A REGION FAR SURPASSES BOTH EUROPE AND LATIN AMERICA AS A DESTINATION FOR AMERICAN EXPORTS WITHOUT RELATIVE OPENNESS IN THIS TWOWAY TRADE THERE IS NO GLOBAL TRADING SYSTEM MOREOVER IF THE COLLAPSE OF NAFTA WILL HAVE DAMAGING POLITICAL RAMIFICATIONS IN MEXICO THESE ARE SMALL DANGERS COMPARED WITH THE POLITICAL TENSIONS THAT COULD WELL ENSUE FROM JAPAN TO CHINA TO SOUTHEAST ASIA FROM A CONTRACTION IN WORLD TRADE AND THUS ECONOMIC GROWTH WHAT GOES UNDER THE GUISE OF DOMESTIC PROTECTIONISM IN WASHINGTON WOULD BE SEEN ACROSS ASIA AS AMERICAN ECONOMIC IMPERIALISM RESENTMENT OF THE US ALREADY IS GROWING FROM CHINA TO MALAYSIA OVER AMERICAN MORALIZING ON SUCH ISSUES AS CLEAN AIR AND HUMAN RIGHTS TO THE EXTENT THESE TENSIONS ALREADY EXIST IN WHAT REMAINS AN EXPANDING WORLD TRADING SYSTEM HOW MUCH MORE DIVISIVE WILL THEY BECOME IN A CONTEXT OF TRADE CONTRACTION ALL THIS WILL PLAY OUT IN CONGRESS OVER THE NEXT FEW MONTHS WHERE NAFTA MUST COMPETE FOR ATTENTION WITH THE PRESIDENT'S HEALTH CARE PLAN AND THE VICE PRESIDENT'S PROPOSALS TO STREAMLINE GOVERNMENT WHILE MR CLINTON SAYS HE SUPPORTS NAFTA HE CONTINUES TO POSTPONE A MAJOR SPEECH ON ITS BEHALF OR DEMONSTRATE HIS DETERMINATION TO FIGHT AND WIN INDEED SOME OF HIS ADVISERS URGE HIM TO HUSBAND SCARCE POLITICAL CAPITAL FOR HEALTH CARE NOT NAFTA MEXICO AND ASIA OF COURSE WOULDN'T BE THE ONLY LOSERS IF NAFTA DOES FAIL MR CLINTON AMERICAN BUSINESS AND OF COURSE AMERICAN CONSUMERS ALL WOULD LOSE TOO MR CLINTON'S ALREADY LIMITED INTERNATIONAL CREDIBILITY AND INFLUENCE WOULD BE FURTHER ERODED AT THE VERY MOMENT THEY ARE NEEDED TO FORCE A FINISH TO LONGDEADLOCKED TALKS ON A NEW GLOBAL TRADING AGREEMENT BY DECEMBER THE CONGRESSIONAL DEADLINE FOR SUBMISSION OF A TREATY WITHOUT NAFTA OR A NEW GENERAL AGREEMENT ON TARIFFS AND TRADE PROSPECTS OF A GLOBAL TRADE WAR ARE TRULY MENACING IF MOST ASIANS DON'T YET SEE THIS LARGER THREAT IT'S EVEN MORE IRONIC THAT MR CLINTON AND HIS ECONOMIC POLICY MAKERS SEEM OBLIVIOUS TOO THE ADDITIONAL IRONY HERE IS THAT AN ADMINISTRATION THAT IS OVERLY EAGER TO EMBRACE INTERDEPENDENCE AND MULTILATERALISM FOR POLITICAL AND MILITARY PURPOSES SEEMS UNABLE TO GRASP THE FAR GREATER DEGREE OF GENUINE INTERDEPENDENCE IN THE GLOBAL ECONOMY IT'S TRULY BIZARRE THAT THE US IS WILLING TO SEND TROOPS TO SOMALIA AND TO THREATEN TO SEND THEM TO BOSNIA IN THE NAME OF INTERNATIONAL COOPERATION WHILE SEEMING TO BELIEVE THAT A FREETRADE FAILURE CAN BE CONFINED TO ONE CORNER OF THE WORLD EVEN THE SIMPLEST CALCULATION OF SELFINTEREST OUGHT TO MAKE CONGRESS AND THE WHITE HOUSE SEE THE GLOBAL STAKES IN RECENT YEARS NEARLY 50 OF US ECONOMIC GROWTH HAS RESULTED FROM INCREASES IN AMERICA'S EXPORTS SO IF OTHER ECONOMIES DON'T GROW AND ABSORB US EXPORTS AMERICA GROWS MORE SLOWLY YET ALL TOO MANY AMERICANS HAVE BOUGHT THE PROTECTIONIST RHETORIC OF ROSS PEROT THAT FREE TRADE MEANS FORFEITING AMERICAN JOBS AND THE LARGER UNDERLYING FALLACY THAT THE GLOBAL ECONOMY IS A FINITE PIE WHERE GROWTH IN ONE COUNTRY MUST COME AT THE EXPENSE OF ANOTHER HOW DEEPLY THIS FALLACY HAS TAKEN ROOT NOT JUST IN WASHINGTON BUT ACROSS AMERICA IS INDICATED BY AN ANECDOTAL SURVEY CITED BY ROBERT HORMATS VICE CHAIRMAN AT GOLDMAN SACHS INTERNATIONAL WHO SPEAKS OFTEN TO AMERICAN AUDIENCES THESE AMERICANS ASKED WHETHER THEY WOULD PREFER TO SEE A THE US ECONOMY GROW AT 5 A YEAR AND JAPAN AT 10 OR B EACH NATION GROW AT 2 REPEATEDLY OPTED TO SEE THE US PAIRED WITH JAPAN AT LOW GROWTH RATHER THAN TO ENJOY STRONGER ECONOMIC GROWTH IN THE US EVEN IF JAPAN GREW FASTER WHAT THIS ADDS UP TO IS NATIONAL COMPETITIVENESS BEING SUBVERTED AND PERVERTED BY MERCANTILIST MYOPIA THIS BEGGARTHYNEIGHBOR ATTITUDE SPRINGS FROM A LARGER POOL OF PESSIMISM A DOWNBEAT DOGMA THAT OVER THE PAST DECADE HAS BEEN SOLD TO AMERICANS LIKE SNAKE OIL BY POLITICIANS ECONOMISTS AND SUNDRY ACADEMIC EVANGELISTS FROM OIL CRISIS TO DEBT CRISIS FROM BUDGET GAPS TO TRADE GAPS FROM AMERICA IS OVEREXTENDED TO AMERICA CAN'T COMPETE IT'S BEEN A CEASELESS SERMON OF GLOOMANDDOOM DECLINEANDFALL MEANTIME DURING THE 1980S AMERICA GREW NEARLY 20 MILLION NEW JOBS AMERICAN PRODUCTIVITY GAINS OUTPACED THOSE OF ALL MAJOR COMPETITORS US INDUSTRY REASSERTED ITS GLOBAL COMPETITIVENESS SUCH ECONOMIC RIVALS AS JAPAN AND GERMANY FALTERED AND POLITICAL ENEMIES DISAPPEARED IN THE DEBRIS OF THE COLD WAR THE POTION OF PESSIMISM TRULY WAS SNAKE OIL THE PARADOX IS THAT THIS DOGMA OF PESSIMISM THE INTELLECTUAL ELITE HAS PEDDLED FOR SO LONG MAY TURN OUT TO BE A SELFFULFILLING PROPHECY THE FACT THAT ALL THESE OTHER SOCALLED CRISES DIDN'T DAMAGE AMERICA'S COMPETITIVENESS OR DAMP WORLD GROWTH DOESN'T MEAN THAT PROTECTIONISM CAN'T OR WON'T AMERICA A NATION THAT DEMONSTRABLY THRIVES ON RAPID CHANGE HAS BEEN LED TO FEAR PRECISELY THOSE CIRCUMSTANCES OF CHANGE INCLUDING FREE TRADE THAT PLAY TO ITS ADVANTAGE SIMILARLY A NEW CLINTON ADMINISTRATION THAT CAMPAIGNED ON THE THEME OF CHANGE IS FEEDING NATIONAL ECONOMIC INSECURITIES IN THE WORDS OF LABOR SECRETARY ROBERT REICH NAFTA HAS BECOME A SYMBOL OF CHANGE AND THIS IS EXACTLY WHAT SO JEOPARDIZES ITS RATIFICATION IT WILL BE THE FINAL IRONY IF A PAINFULLY RESTRUCTURED AMERICAN ECONOMY AND NEWLY RESURGENT AMERICAN INDUSTRY NOW LOSE THE OPPORTUNITY TO COMPETE IN OPEN GLOBAL MARKETS DUE TO A RISING TIDE OF PROTECTIONISM BORN OF EXAGGERATED AND UNWARRANTED PESSIMISM MS HOUSE IS VICE PRESIDENT INTERNATIONAL OF DOW JONES 9309140166 930914 INTERNATIONAL PORTUGAL CONSUMER PRICES RISE MADRID PORTUGAL'S CONSUMER PRICE INDEX ROSE 04 IN AUGUST FROM JULY THE NATIONAL STATISTICS INSTITUTE SAID THE INSTITUTE SAID THE INCREASE LEFT UNCHANGED PORTUGAL'S YEARONYEAR INFLATION RATE AT 58 BUT THE INFLATION RATE MEASURED AS AN AVERAGE OF THE PAST 12 MONTHS SHOWED A DECLINE TO 73 IN AUGUST FROM 75 IN JULY 9309140165 930914 CANADA'S CONSUMER PRICE INDEX OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 02 IN AUGUST FROM JULY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE AUGUST RISE WAS LED BY HIGHER PRICES FOR CLOTHING TOBACCO PRODUCTS AND ALCOHOLIC BEVERAGES IN JUNE AND JULY THE INDEX ROSE 01 FROM THE PREVIOUS MONTHS 9309140164 930914 DAWN CAPITAL CHANGES ITS NAME MOUNT VERNON NY DAWN CAPITAL CORP SAID IT CHANGED ITS NAME TO DAWN TECHNOLOGIES INC BUT ITS NASDAQ SYMBOL WILL REMAIN DAWN 9309140163 930914 INTERNATIONAL OKI TAPS ACER FOR PC PARTS TOKYO OKI ELECTRIC INDUSTRY CO A COMMUNICATIONS EQUIPMENT MAKER SAID IT WILL CONSIGN PRODUCTION OF KEY PARTS FOR ITS PERSONAL COMPUTERS TO TAIWANESE COMPUTER MAKER ACER INC AN OKI SPOKESMAN SAID THE MOVE IS AIMED AT COPING WITH BOTH THE IMPACT OF THE YEN'S RECENT SURGE IN CURRENCY MARKETS AND THE DOWNWARD TREND IN PERSONAL COMPUTER PRICES ACER WILL MAKE CIRCUIT BOARDS AND OTHER MAIN PERSONAL COMPUTER COMPONENTS THE JAPANESE COMPANY WILL DO FINAL ASSEMBLY AT ITS LOCAL OPERATIONS ACER WILL SUPPLY PARTS FOR 50006000 UNITS IN THE SECOND HALF BEGINNING OCT 1 THE SPOKESMAN SAID THE COMPANY SELLS ABOUT 30000 UNITS A YEAR 9309140162 930914 AQUA BUOY SIGNS LETTER OF INTENT CHESTER NJ AQUA BUOY CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE STATIONERY PLUS A CHAIN OF 26 DISCOUNT STATIONERY SHOPS IN THE UK TERMS WEREN'T DISCLOSED AQUA BUOY WHICH USED TO MAKE MARINE DEVICES RECENTLY REACHED A DEFINITIVE AGREEMENT TO ACQUIRE A PETER PUSHBOTTOM CO A NEW YORK MAKER AND RETAILER OF CHILDREN'S CLOTHING 9309140161 930914 WHOLE FOODS MARKET INC AUSTIN TEXAS WHOLE FOODS MARKET INC SAID IT COMPLETED ITS ACQUISITION OF MRS GOOCH'S NATURAL FOODS MARKETS INC FOR STOCK VALUED AT ABOUT 632 MILLION THE FASTGROWING GROCERY STORE CHAIN SAID IT ISSUED ABOUT 15 MILLION SHARES TO FORMER SHAREHOLDERS OF MRS GOOCH'S A LOS ANGELESBASED GROCERY STORE CHAIN WITH SALES OF 85 MILLION IN 1992 9309140160 930914 THE CLINTON HEALTH PLAN MORE ELDERLY PATIENTS COULD GET THEIR CARE FROM HMOS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL AMERICANS OVER AGE 65 MAY GET MORE OF THEIR MEDICAL CARE FROM HEALTHMAINTENANCE ORGANIZATIONS IF PRESIDENT CLINTON'S HEALTH PLAN IS ENACTED CURRENTLY MOST PARTICIPANTS IN MEDICARE THE FEDERAL HEALTH PLAN FOR THE ELDERLY PICK THEIR DOCTORS AND HOSPITALS ON THEIR OWN FEDERAL DATA SHOW THAT LESS THAN 7 OF THE ELDERLY ARE ENROLLED IN HMOS WHICH PROVIDE LARGE GROUPS OF PATIENTS WITH MANAGED CARE THROUGH A PRESCREENED NETWORK OF DOCTORS AND HOSPITALS BUT THE WORKING DRAFT OF THE ADMINISTRATION'S PROPOSED HEALTHCARE BILL WHICH BEGAN CIRCULATING LATE LAST WEEK INCLUDES BROAD HINTS THAT THE WHITE HOUSE WANTS TO MOVE MORE OF THE ELDERLY INTO HMOS DOING SO IS WIDELY SEEN AS AN ATTEMPT TO HOLD DOWN MEDICARE COSTS WHICH HAVE BEEN RISING MORE THAN 10 A YEAR FOR MOST OF THE PAST DECADE THIS NEW GOVERNMENT ATTITUDE INTRIGUES SOME LEADING HMO EXECUTIVES WE SEE A MAJOR OPPORTUNITY FOR OUR MEMBERS SAYS KAREN IGNAGNI PRESIDENT OF THE GROUP HEALTH ASSOCIATION OF AMERICA THE HMO INDUSTRY ASSOCIATION AS MEDICARE BENEFICIARIES FOCUS ON WHAT THEY DON'T HAVE WE COULD SEE THEM BECOMING MORE INTERESTED IN HMOS AMONG MAJOR HMOS US HEALTHCARE INC SAYS IT PLANS TO DOUBLE ITS MEDICARE ENROLLMENT BY THE END OF 1994 TO 50000 MEMBERS EVEN BEFORE THE CLINTON PLAN IS LIKELY TO TAKE EFFECT TUFTS ASSOCIATED HEALTH PLAN SAYS IT IS LOOKING AT REENTERING THE MEDICARE MARKET AFTER DROPPING OUT IN 1988 AND NICK FRANKLIN HEAD OF GOVERNMENT AFFAIRS AT FHP INC SAYS HE REGARDS THE 237PAGE WORKING DRAFT OF THE CLINTON HEALTH BILL AS OVERALL VERY POSITIVE TO MANAGED CARE INCLUDING THE MEDICARE MARKET SPECIFICALLY THE WORKING DRAFT SAYS THE ADMINISTRATION WANTS TO IMPROVE AND STRENGTHEN THE MEDICARE MANAGED CARE PROGRAM THE DRAFT SPELLS OUT AT LEAST FOUR POTENTIAL CHANGES IN THE WAYS THAT HMOS ARE PAID INCLUDING CREATING A SPECIAL POOL FOR HIGHCOST PATIENTS SOMETHING THAT HMOS WOULD WELCOME THE WORKING DRAFT ALSO STRONGLY IMPLIES THAT ANY HMO THAT WANTS TO PICK UP YOUNGER MEMBERS THROUGH THE PROPOSED NEW SYSTEM OF HEALTH ALLIANCES WILL HAVE TO OFFER SERVICES TO THE MEDICARE POPULATION AS WELL WITHIN THREE YEARS OF ENACTMENT THE DRAFT STATES ALL HEALTH PLANS CAPABLE OF QUALIFYING FOR A MEDICARE CONTRACT ARE REQUIRED TO ENTER INTO A COST CONTRACT AS A CONDITION FOR PARTICIPATION IN HEALTH ALLIANCES TO DATE HMOS HAVE GENERALLY DONE WELL IN HOLDING DOWN COSTS FOR THE ELDERLY CHIEFLY BY REDUCING HOSPITALIZATION TIME INDUSTRY OFFICIALS SAY A TYPICAL GROUP OF 1000 MEDICARE PATIENTS IS LIKELY TO SPEND AT LEAST 3000 DAYS A YEAR IN THE HOSPITAL FOR MEDICARE HMO MEMBERS THOUGH THAT FIGURE OFTEN DROPS TO 1800 OR LESS WE'VE FOUND IT'S POSSIBLE TO REDUCE BOTH THE NUMBER OF PEOPLE WHO GET ADMITTED TO THE HOSPITAL AND THE LENGTH OF TIME THAT THEY STAY SAYS ALAN HOOPS PRESIDENT OF PACIFICARE HEALTH SYSTEMS CYPRESS CALIF THAT HMO WHICH HANDLES 270000 MEDICARE MEMBERS BOASTS A HOSPITALIZATION RATE OF JUST 1200 DAYS PER 1000 PEOPLE THESE BIG DROPS IN MEDICAL USAGE HAVE PROMPTED SOME CONCERN THAT HMOS MAY SKIMP ON TREATMENT FOR THE ELDERLY THERE ARE CASES WHERE PEOPLE HAVE DIFFICULTY IN DEALING WITH MANAGED CARE SAYS JOYCE DUBOW A SENIOR ANALYST IN THE PUBLIC POLICY DEPARTMENT OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS BUT SHE ADDS IN GENERAL THE EVIDENCE IS THAT THE QUALITY OF CARE IN MEDICARE HMOS IS COMPARABLE TO WHAT'S AVAILABLE IN THE FEEFORSERVICE SECTOR HMO EXECUTIVES CONTEND THAT IN MANY CASES ELDERLY PATIENTS ARE HOSPITALIZED LONGER THAN NECESSARY AT FHP FOR EXAMPLE MEDICARE PATIENTS UNDERGOING MASTECTOMIES ARE OFTEN DISCHARGED ON THE DAY OF SURGERY AND ARE SENT HOME WITH A NURSE WHO CAN HELP THEM RECUPERATE AT HOME BY CONTRAST MOST NONHMO PATIENTS UNDERGO SEVERAL DAYS OF HOSPITALIZATION FOR SUCH SURGERY HIP REPLACEMENTS ARE ANOTHER OFTCITED AREA WHERE HMOS CUT DOWN HOSPITAL TIME AT KAISER PERMANENTE MEDICARE PATIENTS ARE SENT TO SPECIAL EXERCISE AND REHABILITATION CLASSES BEFORE UNDERGOING SURGERY THAT PROMOTES BETTER HEALING KAISER SURGEONS CONTEND AND LOWERS HOSPITAL TIME TO TWO OR THREE DAYS INSTEAD OF THE EIGHT DAYS THAT ARE TYPICAL IN A NONHMO SETTING IN A BROADER EFFORT TO CUT HOSPITAL TIME UNITED HEALTHCARE CORP SAYS IT PAYS ITS PHYSICIANS AT LEAST DOUBLE THE USUAL MEDICARE REIMBURSEMENT RATES FOR VISITING NURSINGHOME PATIENTS THE OBJECTIVE SAYS UNITED VICE PRESIDENT CYNTHIA POLICH IS TO SPOT PROBLEMS SUCH AS DEHYDRATION EARLY BEFORE THEY REQUIRE HOSPITALIZATION AT 1000 A DAY WHILE SUCH EXAMPLES SUGGEST THAT HMOS HOLD SOME PROMISE FOR THE MEDICARE POPULATION HMOS ALSO HAVE STUMBLED AT TIMES IN TRYING TO CARE FOR THE ELDERLY SIGNING UP OLDER MEMBERS USUALLY INVOLVES BIG MARKETING COSTS AND SOME RECRUITERS HAVEN'T DONE A GOOD JOB OF EXPLAINING THE RESTRICTIONS INVOLVED IN HMOS AS A RESULT SAYS JACOB GETSON HEAD OF GOVERNMENT AFFAIRS FOR US HEALTHCARE THERE ARE A LOT OF MEDICARE BENEFICIARIES IN FLORIDA AND CALIFORNIA WHO DROPPED OUT OF HMOS AFTER TWO TO THREE MONTHS MR GETSON SAYS US HEALTHCARE HASN'T HAD SUCH PROBLEMS WITH ITS MEDICARE POPULATION BUT ADDS MARKETING IS A REAL ISSUE ANOTHER COMPLEX ISSUE INVOLVES THE RATE OF INCREASE IN GOVERNMENT REIMBURSEMENTS FOR HANDLING MEDICARE POPULATIONS MARGO VIGNOLA A HEALTHCARE ANALYST FOR SALOMON BROTHERS INC NOTES THAT THE FEDERAL GOVERNMENT'S LATEST REIMBURSEMENT RATES WERE BELOW WHAT SOME PEOPLE HAD EXPECTED CAUSING A BRIEF DROP IN STOCKS OF THOSE HMOS WITH A HEAVY INVOLVEMENT IN MEDICARE WE'RE BULLISH ABOUT THE OPPORTUNITIES IN MEDICARE SAYS THE GROUP HEALTH ASSOCIATION'S MS IGNAGNI BUT WE WANT TO BE ADEQUATELY COMPENSATED SO WE CAN DELIVER ADEQUATE CARE 9309140159 930914 FOREIGN EXCHANGE DOLLAR AND YEN REBOUND AS INVESTORS TAKE PROFITS ON SHARP CLIMB OF MARK BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR AND THE YEN REBOUNDED AGAINST THE MARK MONDAY AS INVESTORS CASHED IN ON THE GERMAN CURRENCY'S SHARP CLIMB LAST WEEK BUT TRADERS CAUTIONED THAT THE SALES OF LONG MARK POSITIONS WEREN'T LIKELY TO SPELL THE END OF THE MARK'S RECENT STRENGTH ADDING THAT THE DOLLAR COULD TEST EVEN LOWER LEVELS DURING THE NEXT FEW DAYS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16085 MARKS UP FROM 15975 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10632 YEN UP FROM 10605 YEN STERLING WAS TRADING AT 15455 DOWN FROM 15520 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10563 YEN AND AT 16110 MARKS TRADERS REPORTED THAT WHEN THE MARK FAILED TO CONTINUE TO GAIN GROUND AGAINST OTHER MAJOR CURRENCIES IN EARLY TRADING MONDAY INVESTORS DECIDED IT WAS TIME TO LOCK IN THEIR PROFITS ON THE GERMAN CURRENCY'S CLIMB LAST WEEK THAT SET OFF A ROUND OF MARK SALES LIFTING THE DOLLAR THROUGH A KEY TECHNICAL LEVEL AT 16050 MARKS AND TRIGGERING FURTHER STOPLOSS SALES THOSE SALES BOOSTED THE DOLLAR AS FAR AS 16145 MARKS BEFORE IT SETTLED BACK TO TRADE LATE IN NEW YORK AT 16085 MARKS BUT TRADERS ADDED THAT THE DOLLAR'S GAINS MONDAY WERE LIKELY TO BE SHORTLIVED THEY SAID THE FACTORS THAT HAVE BOOSTED THE MARK DURING RECENT WEEKS SUCH AS GERMANY'S HIGH INTEREST RATES AND PURCHASES OF THE CURRENCY BY EUROPEAN CENTRAL BANKS SEEM LIKELY TO CONTINUE FOR THE FORESEEABLE FUTURE WE WERE PRETTY IMPRESSED WITH THE WAY THE DOLLAR FOUND SUPPORT AND FAILED TO CRACK 159 MARKS DURING THE ASIAN TRADING DAY SAID ANGELO EVANGELISTA A VICE PRESIDENT OF FOREIGN EXCHANGE AT BANK OF BOSTON MR EVANGELISTA NOTED THAT SUPPORT FOR THE DOLLAR MAINLY FROM CORPORATE BUYERS HELPED LIFT THE US CURRENCY OFF AN INTRADAY LOW OF 15940 MARKS AND SPARK THE PROFITTAKING IN MARK POSITIONS HOWEVER HE EMPHASIZED THAT THE MARK CONTINUES TO SEE STRONG BUYING DEMAND PARTICULARLY SINCE EUROPEAN CENTRAL BANKS MUST CONTINUE TO BUY MARKS TO REPLENISH CURRENCY RESERVES SPENT DURING JULY'S CRISIS IN THE EUROPEAN EXCHANGE RATE MECHANISM DURING THAT CRISIS CENTRAL BANKS SOLD BILLIONS OF MARKS IN AN ULTIMATELY FUTILE BID TO KEEP WEAKER ERM CURRENCIES FROM FALLING OUT OF THEIR TRADING BANDS AGAINST THE MARK THE CENTRAL BANKS HAVE SINCE BEEN WIDELY RUMORED TO BE QUIETLY REPLACING THOSE RESERVES BY BUYING MARKS FOR DOLLARS AND THEIR LOCAL CURRENCIES THAT TO ME IS GOING TO THWART ANY TYPE OF DOLLAR RECOVERY MR EVANGELISTA SAID I THINK WE'LL TEST LOWER AGAIN JOHN BEERLING CHIEF DEALER AT NORWEST BANK CORP IN MINNEAPOLIS AGREED THAT THE DOLLAR IS UNLIKELY TO REVERSE MUCH OF ITS LOSSES AGAINST THE MARK IN THE SHORT TERM NOTING THAT GERMANY'S 625 DISCOUNT RATE EVEN AFTER A CUT LAST WEEK REMAINS FAR ABOVE THE US DISCOUNT RATE OF 3 THE RATE DIFFERENTIAL REMAINS SUBSTANTIAL MR BEERLING SAID THE MARKET IS STILL FAIRLY BEARISH 9309140158 930914 INTERNATIONAL SPANISH ANNUAL INFLATION SLIPS MADRID SPAIN'S YEARTOYEAR INFLATION TICKED DOWN TO 46 IN AUGUST FROM 49 A MONTH EARLIER BUT ECONOMISTS REMAIN SKEPTICAL THAT PRICES HAVE RESUMED THEIR PRESUMMER DOWNWARD TREND THE AUGUST CONSUMER PRICE INDEX DECLINED FROM A YEAR EARLIER ALTHOUGH THE MONTHLY RATE ROSE 06 FROM JULY THE NATIONAL STATISTICS INSTITUTE SAID SPAIN'S UNDERLYING INFLATION A MEASURE OF CONSUMER PRICES EXCLUDING UNPROCESSED FOOD AND ENERGY ROSE 02 IN AUGUST FROM JULY BUT THAT MODEST MONTHLY INCREASE PERMITTED THE ANNUAL RATE OF CORE INFLATION TO DECLINE TO 57 IN AUGUST FROM 59 IN JULY THE INSTITUTE SAID BUT ECONOMISTS SAY IT'S PREMATURE FOR THE SPANISH GOVERNMENT TO CLAIM VICTORY IN ITS BATTLE AGAINST INFLATION AND FORECAST A FIGURE OF NEAR 50 BY YEAR END 9309140157 930914 DAYS INN SIGNS LICENSE PACT NEW YORK DAYS INN OF AMERICA INC SIGNED A MASTER LICENSE AGREEMENT TO DEVELOP HOTELS IN ISRAEL IN A NEWS RELEASE THE COMPANY SAID ODA INTERNATIONAL MANAGEMENT CORP A DUTCH CORPORATION WITH OFFICES IN AMSTERDAM TEL AVIV AND NEW YORK IS THE MASTER LICENSEE DAYS INN SAID IT HAS INITIATED AN AGGRESSIVE INTERNATIONAL DEVELOPMENT PROGRAM THE COMPANY HAS MORE THAN 1410 FRANCHISED HOTELS IN THE US MEXICO CANADA INDIA AND EUROPE THE COMPANY SAID IT PLANS TO HAVE FIVE DAYS INN PROPERTIES IN ISRAEL WITHIN THE NEXT FIVE YEARS TEL AVIV HAS BEEN TARGETED AS THE SITE OF THE FIRST PROPERTY DAYS INN ALSO PLANS TO OPEN PROPERTIES IN JERUSALEM HAIFA EILAT AND GALILEE DAYS INN IS PART OF HOSPITALITY FRANCHISE SYSTEMS INC 9309140155 930914 WHO'S NEWS MASCO CORP MASCO CORP TAYLOR MICH CAP HENDRIX 41 YEARS OLD RESIGNED AS PRESIDENT OF THERMADOR CORP A UNIT OF THIS MAKER OF HOUSEHOLD PRODUCTS TO BECOME GENERAL MANAGER OF TORO CO'S IRRIGATION DIVISION IN RIVERSIDE CALIF JIM CONNORS MASCO'S GROUP VICE PRESIDENT WILL ASSUME RESPONSIBILITY FOR THERMADOR FOR THE TIME BEING 9309140154 930914 WHO'S NEWS INFONOW CORP INFONOW CORP BOULDER COLO GEOFFREY S GOEDDE CHIEF SCIENTIST AND A DIRECTOR RESIGNED TO PURSUE OTHER INTERESTS REDUCING THIS COMPUTER SOFTWARE COMPANY'S BOARD TO FOUR THE COMPANY SAID MR GOEDDE 49 YEARS HAD BEEN WITH INFONOW FOR THREE YEARS HE COULDN'T BE REACHED TO COMMENT 9309140153 930914 THEN AS HE FOUND TO HIS HORROR ALL THE CLAWED CREATURES VANISHED BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL IMPERSONATING HORROR WRITER STEPHEN KING CAN GET YOU INTO A LOT OF TROUBLE AROUND HIS HOMETOWN OF BANGOR MAINE AS BERT SID LOOK FOUND OUT AS MR LOOK'S FRIENDS TELL IT HE OR AN ALLY PRETENDED TO BE ACTING FOR MR KING WHILE ENGAGING IN A PERFECTLY UNDERSTANDABLE FORM OF CREDIT COLLECTION BUT THE PENOBSCOT COUNTY MAINE DISTRICT ATTORNEY SAYS THAT WHAT THEY DID WAS THEFT OF 5000 CRUSTACEANS IN SHORT A LOBSTER HEIST THE CAPER BEGAN IN JULY WHEN AFTER TRYING UNSUCCESSFULLY FOR 10 MONTHS TO COLLECT AN ALLEGED 30000 DEBT FROM LOBSTER BROKER JOHN KOSTANDIN MR LOOK ENLISTED THE AID OF AN IMAGINATIVE COMEDIAN TO DEVISE A PLOT THAT WOULD RETRIEVE AT LEAST PART OF THE MONEY ALLEGEDLY DUE SOMEONE THEN INVITED MR KOSTANDIN TO CATER A LOBSTER BAKE AT MR KING'S MANSION IN BANGOR WITH PROMISES OF A PRIVATE PREDINING CHAT WITH THE NOVELIST AT A NEARBY CHINESE RESTAURANT A KING FAN MR KOSTANDIN HAD THE SHELLFISH TRUCKED TO A ROADSIDE STOP FOR A SUPPOSED BANQUET CONSULTATION MR KOSTANDIN WHO ACCOMPANIED THE TRUCK IN A LIMOUSINE WAS THEN TOLD TO PROCEED TO THE RESTAURANT WHILE A CREW WOULD PREPARE THE LOBSTERS BUT THE LOBSTERS WENT TO MR LOOK THE STATE CHARGES MR KOSTANDIN NEVER GOT HIS MEETING WITH MR KING ON FRIDAY MR LOOK FACED ARRAIGNMENT IN BANGOR FOR THEFT BY DECEIT TO WHICH HE PLEADED NOT GUILTY OTHER LOBSTERMEN BACK HIM UP IT'S A TRAVESTY OF JUSTICE SAYS ROGER HUGHES A SPOKESMAN OF A RALLYING GROUP OF NEW ENGLAND FISHERMEN THAT CALLS ITSELF THE SLA SID'S LIBERATION ARMY THIS IS CLEARLY A CASE IN WHICH THE CRIMINAL IS THE VICTIM PENOBSCOT COUNTY DISTRICT ATTORNEY R CHRISTOPHER ALMY WHO CHARGED MR LOOK EQUATES THE SCHEME WITH GOING INTO SOMEONE'S HOME AND RAIDING THE DEBTOR'S PIGGY BANK OR TAKING HIS LIFE SAVINGS FROM UNDER THE MATTRESS IT'S JUST NOT THE WAY THINGS ARE DONE IN THIS COUNTRY TO THE CONTRARY COUNTERS STANLEY BROWN MR LOOK'S ATTORNEY BANKS AND THE INTERNAL REVENUE SERVICE NOT ONLY TAKE YOUR PIGGY BANK AND YOUR MATTRESS THEY TAKE YOUR HOUSE AWAY HE SAYS AND WHAT IS MR KING'S ROLE IN ALL THIS HE KNEW NOTHING OF THE SCHEME SAYS SHIRLEY SONDEREGGER HIS SECRETARY AND WANTS TO STAY OUT OF IT BUT SHE ADDS HE FINDS ALL THIS PRETTY AMUSING 9309140152 930914 WORLD MARKETS TOKYO SHARES ADVANCE 16 IN ANTICIPATION OF JAPAN'S STIMULUS PLAN LONDON STOCKS SLIP A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS JUMPED 16 MONDAY LED BY STRONG FUTURES BUYING IN ANTICIPATION OF A JAPANESE GOVERNMENT FISCAL STIMULUS PACKAGE TO BE OUTLINED EARLY NEXT WEEK LONDON PRICES FELL EXTENDING THE MARKET'S SLOW DECLINE TO TWO WEEKS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11303 UP 018 REFLECTING INCREASES IN AMERICAN AND ASIA/PACIFIC MARKETS AND A DROP IN EUROPEAN MARKETS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16524 UP 371 OR 23 WITH PARAMOUNT OF THE US POSTING A 55 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 11753 DOWN 404 OR 33 WITH BATTLE MOUNTAIN GOLD OF THE US SLIDING 79 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH EDGED DOWN 760 POINTS FRIDAY GAINED 33013 TO 2114811 ON TUESDAY THE NIKKEI FELL 10291 POINTS TO CLOSE THE MORNING SESSION AT 2104520 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 270 MILLION SHARES DOWN FROM 56968 MILLION SHARES FRIDAY GAINERS OUTNUMBERED LOSERS 773259 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH ROSE 116 POINTS FRIDAY CLIMBED 1701 TO 169451 HOUSING AND CONSTRUCTION ISSUES GAINED ON REPORTS THAT THE ADMINISTRATION OF PRIME MINISTER MORIHIRO HOSOKAWA HAS DECIDED ON A 5 TRILLION YEN 47 BILLION FISCAL STIMULUS PACKAGE WHICH WOULD INCLUDE TAX CUTS FOR INDIVIDUALS WHO REFURBISH THEIR HOMES AND RETAILERS THAT INCREASE CAPITAL INVESTMENT SIMILARLY THE FOOD SECTOR WHICH STANDS TO GAIN FROM THE GOVERNMENT'S DEREGULATION MEASURES WERE HIGHER ON THE DAY THE GROWING LIKELIHOOD OF A CUT IN THE BANK OF JAPAN'S OFFICIAL DISCOUNT RATE CURRENTLY AT A HISTORICAL LOW OF 25 ALSO SPURRED INTEREST IN EQUITIES LOWER INTEREST RATES MAKE STOCKS MORE ATTRACTIVE AS INVESTORS SEARCH FOR THE HIGHER YIELDS THAT CAN NO LONGER BE FOUND ON FIXEDRATE INSTRUMENTS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX DROPPED 122 POINTS TO 30248 THE FT 30 INDEX LOST 106 TO 23547 VOLUME TOTALED 5853 MILLION SHARES COMPARED WITH 596 MILLION ON FRIDAY THE FTSE 100'S DECLINE REFLECTING A SLIGHTLY OVERPRICED MARKET AND THE ABSENCE OF FRESH NEWS WAS ALL THE MORE DISAPPOINTING BECAUSE IT OCCURRED AMID BULL MOVES IN JAPAN AND THE US NEW YORK AND LONDON IN PARTICULAR HAD BEEN FEEDING OFF EACH OTHER DURING RECENT RALLIES A LARGE SALE OF FUTURES CONTRACTS DEPRESSED THAT MARKET IN THE AFTERNOON HELPING TO LEAD THE CASH MARKET DOWN OTHER EUROPEAN MARKETS REBOUNDED IN TECHNICAL ACTIVITY IN FRANKFURT STOCKS STAGED A SMALL RALLY IN QUIET TRADING CORRECTING FROM A STRING OF LOSSES LAST WEEK THE DAX 30STOCK INDEX OF BLUECHIPS ROSE 1113 POINTS TO 187257 IN PARIS SHARES ENDED MODERATELY HIGHER FOLLOWING FOUR CONSECUTIVE SESSIONS OF DECLINES MILAN SHARES TOO RECOVERED IN A LATE TECHNICAL ADVANCE SOME IN THE MARKET BELIEVE ITALIAN INTEREST RATES WILL COME DOWN FURTHER THE BANK OF ITALY LAST THURSDAY CUT THE DISCOUNT RATE BY 05 PERCENTAGE POINT TO 85 AS WELL AS CERTAIN OTHER RATES IN MADRID PRICES PLUNGED 14 ON PROFITTAKING THE DECLINES OCCURRED ACROSS THE BOARD WITH BANKS HIT PARTICULARLY HARD SPANISH CONSUMER PRICE DATA FOR AUGUST RELEASED YESTERDAY BORE FEW SURPRISES FALLING IN LINE WITH EXPECTATIONS BUT WHILE THE DATA SHOWED AN EASING IN INFLATION NO CUT IS EXPECTED IN SPAIN'S 10 BENCHMARK INTEREST RATE AT TODAY'S BANK OF SPAIN REPURCHASE TENDER MAJOR ASIAN AND PACIFIC MARKETS WERE MIXED IN SYDNEY SHARES SLIPPED AS LINGERING CONCERN ABOUT THE STABILITY OF THE AUSTRALIAN DOLLAR SIDELINED SOME INVESTORS RESOURCE STOCKS PARTICULARLY GOLD ISSUES ACCOUNTED FOR MUCH OF THE WEAKNESS WHILE MANY INDUSTRIAL SHARES GAINED IN HONG KONG STOCKS SLUMPED ON PROFITTAKING DRIVEN BY FUTURESRELATED ACTIVITIES ON THE EVE OF THE MEETING OF THE SINOBRITISH JOINT LIAISON GROUP WHICH IS OVERSEEING THE COLONY'S SOVEREIGN TRANSFER TO BEIJING AFTER 1997 IN SINGAPORE EQUITIES REBOUNDED IN A TECHNICAL RECOVERY WITH MALAYSIAN OVERTHECOUNTER SHARES PROVIDING THE FOCUS IN TAIPEI STOCKS FELL IN THIN TRADING WITH THE MARKET DOMINATED BY THE MOVEMENT OF SMALLER STOCKS IN SEOUL PRICES ENDED HIGHER BUT BELOW THE DAY'S HIGH AFTER A BARRAGE OF SELLING AS TRADERS TRIED TO NARROW THEIR LOSSES IN MANILA STOCKS JUMPED 31 IN ACTIVE TRADING LED BY STRONG BUYING IN SELECTED ISSUES A NUMBER OF FUND MANAGERS ARE POSITIONING THEIR PORTFOLIOS FOR THE TRADITIONALLY STRONG FOURTH QUARTER WHILE SPECIFIC STOCKS RESPOND TO RECENT BUSINESS DEVELOPMENTS BUT THE MARKET'S STRONG GAINS IN RECENT SESSIONS COULD BE DUE FOR A CORRECTION SOON IN WELLINGTON SHARES WEAKENED IN BUSY TRADING BECAUSE OF SUBSTANTIAL DECLINES IN SELECTED BLUECHIP ISSUES AMONG CORPORATE DEVELOPMENTS IN HONG KONG SOUTH CHINA MORNING POST DROPPED 93 OR 50 HONG KONG CENTS TO HK485 62 US CENTS THE NEWSPAPER PUBLISHER'S SHARES RESUMED TRADING MONDAY AFTERNOON AFTER A HALT OF MORE THAN SIX DAYS THE SHARES HAD RUN UP PREVIOUSLY ON RUMORS OF A TAKEOVER ON SUNDAY ITS MAJOR SHAREHOLDER RUPERT MURDOCH'S NEWS CORP ANNOUNCED IT WAS SELLING A 349 INTEREST IN THE COMPANY IN MADRID ARGENTARIA TUMBLED 270 PESETAS OR 48 TO 5380 PESETAS 4206 THE STATERUN BANKING GROUP RECEIVED GOVERNMENT AUTHORIZATION FOR ANOTHER OFFERING OF AS MUCH AS 25 OF ITS SHARE CAPITAL THE MOVE FOLLOWS A HIGHLY SUCCESSFUL INTERNATIONAL OFFERING IN MAY OF 3136 MILLION SHARES REPRESENTING 25 OF ITS CAPITAL IN SYDNEY FOSTER'S BREWING GROUP FINISHED UNCHANGED AT 128 AUSTRALIAN DOLLARS 83 US CENTS THE BREWER'S OPERATING PROFIT IN THE YEAR ENDED JUNE 30 WAS A3103 MILLION US2018 MILLION COMPARED WITH A LOSS OF A9508 MILLION A YEAR EARLIER THE DIVIDEND WAS DOUBLED TO 6 AUSTRALIAN CENTS A SHARE FROM 3 CENTS 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 9309140151 930914 PEPPERAND SALT FOR EXHIBITING COMPULSIVE BEHAVIOR POSITIVE THINKING NETWORKING AND EVEN IDLE DREAMING CAN BE USEFUL IN A JOB SEARCH SOONER OR LATER THOUGH THE SEEKER MUST MAKE CONTACT WITH A HIRE POWER 9309140150 930914 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED SEPTEMBER 10 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CALVERT CITY KY WILL REDEEM ON OCT 12 1993 ITS 7 POLLUTION CONTROL REVENUE BONDS 1979 SERIES B DUE FEB 1 2009 MELLON BANK PHILADELPHIA IS TRUSTEE ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON OCT 1 1993 60000000 PRINCIPAL AMOUNT OF ITS 585 POLLUTION CONTROL REVENUE BONDS 1977 SERIES A DUE OCT 1 2007 BANKERS TRUST CO NEW YORK IS TRUSTEE MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON OCT 1 1993 THE FOLLOWING 1983 SERIES A RESIDENTIAL DEVELOPMENT BONDS ISSUE III DUE OCT 1 OF THE INDICATED YEAR 92 DUE 1994 93 DUE 1995 94 DUE 1996 95 DUE 1997 96 DUE 1998 975 DUE 2001 10 DUE 2012 AND 65 DUE 2014 SHAWMUT BANK BOSTON IS TRUSTEE MIDDLETOWN TOWNSHIP SEWERAGE AUTHORITY WILL REDEEM ON OCT 14 1993 ITS REVENUE REFUNDING BONDS DATED DEC 1 1973 UNITED COUNTIES TRUST CO SUMMIT NJ IS TRUSTEE PENNSYLVANIA WILL REDEEM ON OCT 1 1993 18965000 PRINCIPAL AMOUNT OF ITS GENERAL OBLIGATION BONDS FIRST 1983 SERIES S AND 3800000 PRINCIPAL AMOUNT OF ITS GENERAL OBLIGATION BONDS 15TH SERIES U DUE OCT 1 19942002 CORESTATES BANK PHILADELPHIA IS LOAN TRANSFER AGENT SOLON CITY OHIO WILL REDEEM ON OCT 1 1993 165000 PRINCIPAL AMOUNT OF ITS 6 1/4 INDUSTRIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS DUE OCT 1 1997 AND 30000 PRINCIPAL AMOUNT OF THE 6 7/8 SERIES 1969 BONDS DUE OCT 1 1969 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE CELLULAR INC WILL REDEEM ON OCT 8 1993 ITS 8 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2000 BANK OF NEW YORK NEW YORK IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON OCT 12 1993 ITS 915 DEBENTURES SERIES SM2000H DUE OCT 10 2000 9309140149 930914 GERSTNER MOVES TO COORDINATE IBM BUSINESSES NEW PANEL NAMED TO HELP UNITS ACT IN CONCERT ZUCKERMAN TO GET POST BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A FURTHER INDICATION THAT HE WANTS TO MAKE INTERNATIONAL BUSINESS MACHINES CORP WORK BETTER NOT BREAK IT UP LOUIS V GERSTNER JR CREATED A TOPLEVEL EXECUTIVE COMMITTEE TO COORDINATE IBM'S BUSINESSES MEANWHILE IBM WILL NAME FREDERICK ZUCKERMAN AS TREASURER TOMORROW ACCORDING TO PEOPLE IN THE COMPUTER INDUSTRY MR ZUCKERMAN CURRENTLY IS TREASURER OF RJR NABISCO INC WHERE MR GERSTNER WAS CHAIRMAN BEFORE JOINING IBM AS CHAIRMAN IN APRIL BOTH MR ZUCKERMAN AND IBM DECLINED TO COMMENT ABOUT THE POST IN A MEMO THAT WAS DISTRIBUTED ELECTRONICALLY TO EMPLOYEES YESTERDAY MR GERSTNER TOOK PAINS TO INSIST THAT HE WASN'T IMPOSING A NEW LAYER OF BUREAUCRACY RATHER HE SAID THE NEW 11PERSON COMMITTEE WILL FOCUS ON POLICY ISSUES THAT CUT ACROSS MULTIPLE UNITS TO ENSURE THAT IBM BUSINESS UNITS WORK IN A COHESIVE AND RESPONSIVE WAY TO SERVE IBM CUSTOMERS MINIMIZING REDUNDANCY MR GERSTNER WROTE IN THE MEMO THAT HE HAD REACHED THE FIRM CONCLUSION THAT DECENTRALIZATION VS CENTRALIZATION ISN'T OUR MOST IMPORTANT ORGANIZATIONAL DILEMMA RATHER IT IS THE WORKING RELATIONSHIPS ACROSS OUR OPERATING UNITS THE MEMO SAID THAT THE COMMITTEE WON'T OVERSEE DIVISIONAL BUDGETS AND STRATEGY INSTEAD OPERATING PERFORMANCE REMAINS THE PRINCIPAL RESPONSIBILITY OF OUR PRODUCT AND MARKETING UNITS WALL STREET ANALYSTS GENERALLY GAVE THE ORGANIZATIONAL BLUEPRINT A THUMBS UP SAYING IT APPEARS TO BE A SAVVY WAY TO TACKLE THE FORMIDABLE PROBLEM OF COORDINATING IBM'S DIVISIONS MANY BELIEVE IT PLAYS TO ONE OF BIG BLUE'S BIGGEST STRENGTHS THE ABILITY TO PROVIDE CORPORATE CUSTOMERS WITH SOCALLED UNIFIED COMPUTING SOLUTIONS THAT INVOLVE THE PRODUCTS OF VARIOUS IBM UNITS HE'S SAYING THAT THE CUSTOMER IS KING SAID DANIEL MANDRESH A COMPUTER ANALYST WITH MERRILL LYNCH GLOBAL SECURITIES THIS IS THE BEST COMBINATION OF STRUCTURES TO SATISFY THE OBJECTIVE OF PROVIDING UNIFIED SOLUTIONS MR MANDRESH NOTED THAT UNDER THE PLAN BUSINESS UNITS ARE LEFT WITH PROFITANDLOSS RESPONSIBILITY WHICH FOSTERS ACCOUNTABILITY AT THE OPERATING LEVEL AT THE SAME TIME THE NEW EXECUTIVE COMMITTEE PROVIDES BUSINESS UNITS WITH A MECHANISM FOR TALKING TO EACH OTHER IN A LARGE CORPORATION IN WHICH BUSINESS UNITS SHARE CUSTOMERS AND HAVE SIMILAR MANUFACTURING PROCESSES SPINNING OFF IS NOT THE ORDER OF THE DAY MR MANDRESH SAID THIS IS CONSISTENT WITH EVERYTHING MR GERSTNER HAS SAID SINCE TAKING THE JOB OTHER ANALYSTS NOTED THAT THE REORGANIZATION REFLECTS A DIMINISHED ROLE FOR THE COMPANY'S FABLED MAINFRAME OPERATIONS UNDER THE PLAN IBM'S MAINFRAME OPERATION FORMERLY KNOWN AS ENTERPRISE SYSTEMS HAS BEEN PLACED UNDER THE SAME EXECUTIVE WHO HEADS THE MIDRANGE MINICOMPUTER BUSINESS THE CHANGES REFLECT THE MODERN COMPUTER INDUSTRY SAYS JAY STEVENS AN ANALYST WITH DEAN WITTER REYNOLDS INC MAINFRAME IS NOT THE MOST PROMINENT WORD IN THIS RELEASE PUTTING THE TWO OPERATIONS UNDER A SINGLE BOSS SUGGESTS THERE WILL BE SOME SHARED TECHNOLOGY BETWEEN THOSE SYSTEMS GOING FORWARD AS IT SHOULD BE MR STEVENS SAID BUT AN IBM SPOKESMAN STRESSED THAT IBM WASN'T ABANDONING ITS COMMITMENT TO MAINFRAMES IN FACT MR GERSTNER NOTED IN THE MEMO THAT THE CHANGES AREN'T NECESSARILY THE FINAL ANSWER TO THE ISSUE OF PRODUCT GROUPINGS SINCE TAKING OVER THE TOP JOB THIS SPRING MR GERSTNER HAS PULLED BACK FROM SOME OF THE EARLY STEPS TAKEN BY HIS PREDECESSOR TO DECENTRALIZE IBM MR GERSTNER PUT ON THE BACK BURNER SOME HIGHLEVEL STUDIES ABOUT WAYS TO SPIN OFF IBM DIVISIONS AND HE ADDED TWO TOPLEVEL JOBS TO COORDINATE STRATEGY AND MARKETING AFTER YEARS OF CUTS TO THE ARMONK NY BUREAUCRACY IN ESTABLISHING THE NEW EXECUTIVE COMMITTEE MR GERSTNER ALSO EXPANDED HIS INNER CIRCLE OF KEY PEOPLE AND GAVE THREE OF THEM EXPANDED OPERATING RESPONSIBILITY IN ADDITION TO THEIR POSTS ON THE EXECUTIVE COMMITTEE THEY ARE JOHN THOMPSON WHO ASSUMES OVERALL RESPONSIBILITY FOR MAINFRAMES AND MINICOMPUTERS ELLEN HANCOCK WHO WILL OVERSEE NETWORKING AND HIGHEND SOFTWARE SYSTEMS AND PATRICK TOOLE WHO BECOMES RESPONSIBLE FOR CHIPS DISK DRIVES PRINTERS AND SPECIALIZED INDUSTRY SOFTWARE ALL ARE CURRENTLY SENIOR VICE PRESIDENTS OTHER SENIOR VICE PRESIDENTS NAMED TO THE COMMITTEE ARE JAMES CANNAVINO HEAD OF THE COMPANY'S PERSONAL COMPUTER BUSINESS GERALD CZARNECKI HEAD OF HUMAN RESOURCES ROBERT LABANT IN CHARGE OF NORTH AMERICAN MARKETING OPERATIONS NED LAUTENBACH IN CHARGE OF OVERSEAS MARKETING BERNARD PUCKETT IN CHARGE OF CORPORATE STRATEGY AND JEROME YORK CHIEF FINANCIAL OFFICER PAUL RIZZO IBM'S VICE CHAIRMAN ALSO WILL SIT ON THE COMMITTEE WITH MR GERSTNER WHO FORMALLY DESIGNATED MR RIZZO AS HIS DEPUTY TO ACT IN HIS ABSENCE CHARGED WITH FOCUSING ON OVERALL CORPORATE RESULTS NOT INDIVIDUAL UNIT PERFORMANCE THE EXECUTIVES WILL BE COMPENSATED LARGELY ON COMPANYWIDE RESULTS AND WILL REPORT TO MR GERSTNER ACCORDING TO THE MEMO BEAR STEARNS & CO ANALYST CLIFFORD FRIEDMAN DESCRIBED THE EXECUTIVES AS A FIDUCIARY COMMITTEE HE SAID MR GERSTNER WHO LACKED A TECHNOLOGY BACKGROUND WHEN HE TOOK THE JOB CAN BOUNCE IDEAS OFF THE COMMITTEE AND GET AN OPINION THAT IS MORE UNBIASED THAN TALKING TO OPERATING HEADS WHO MAY HAVE A VESTED INTEREST IN PARTICULAR PRODUCTS OR STRATEGIES IN THE FUTURE WORLD OF COMPUTERS HE'S BECOMING VERY CUSTOMERCENTRIC SAID SAM ALBERT AN INDEPENDENT COMPUTER ANALYST IN SCARSDALE NY HE SAYS CUSTOMERS WANT A TOTAL SOLUTION AND HE CAN GIVE THEM ONE MEANWHILE MR ZUCKERMAN HAS AGREED TO REJOIN MR GERSTNER'S TEAM MR ZUCKERMAN 59 YEARS OLD WOULD BE THE LATEST OF SEVERAL TOP OFFICIALS RECRUITED BY MR GERSTNER FROM OUTSIDE IBM MR ZUCKERMAN IS NO STRANGER TO IBM WHERE HE WORKED IN FINANCE JOBS IN THE 1960S AND 1970S AND WAS CONTROLLER OF THE REAL ESTATE AND CONSTRUCTION DIVISION FROM 1976 TO 1979 HE ALSO HAS PREVIOUSLY WORKED WITH MR YORK THE CFO WHEN BOTH WERE AT CHRYSLER CORP DURING ITS TURNAROUND IN THE 1980S IBM HAS BEEN LOOKING FOR A NEW TREASURER SINCE JUNE WHEN INCUMBENT ROBERT RIPP SAID HE WOULD RETIRE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IBM SHARES ROSE 125 CENTS TO 43875 9309140148 930914 AYDIN CORP GETS SUBCONTRACT HORSHAM PA AYDIN CORP SAID IT RECEIVED A SUBCONTRACT VALUED AT 195 MILLION FOR AIRBORNE FLIGHT TEST EQUIPMENT FOR A FIGHTER AIRCRAFT THE COMPANY DIDN'T DISCLOSE THE PRIMARY CONTRACTOR IT SAID ALMOST ALL THE WORK CALLED FOR IN THE PACT WILL BE COMPLETED WITHIN THE NEXT FOUR YEARS AT ITS AYDIN VECTOR DIVISION IN NEWTOWN PA 9309140147 930914 SIZELER TO BUY FLORIDA COMPLEX KENNER LA SIZELER PROPERTY INVESTORS INC SAID IT AGREED TO ACQUIRE A 240UNIT APARTMENT COMPLEX IN FLORIDA TERMS AND THE SELLER'S IDENTITY WEREN'T DISCLOSED THE COMPANY SAID THE TRANSACTION IS SUBJECT TO NORMAL DUE DILIGENCE AND IS EXPECTED TO BE COMPLETED BY THE END OF SEPTEMBER WITH THE COMPLETION OF THE ACQUISITION SIZELER SAID IT WILL HAVE ABOUT 2600 APARTMENT UNITS IN ITS PORTFOLIO 9309140146 930914 WHO'S NEWS AFFINITY BIOTECH INC AFFINITY BIOTECH INC BOOTHWYN PA THIS PHARMACEUTICAL CONCERN NAMED DENNIS M FOSS CHIEF FINANCIAL OFFICER AND TREASURER MR FOSS 52 YEARS OLD SUCCEEDS JOSEPH L JACKSON 66 WHO CONTINUES AS SECRETARY AND A DIRECTOR MR FOSS WILL OVERSEE THE COMPANY'S NONRESEARCH AND DEVELOPMENT ADMINISTRATIVE FUNCTIONS IN ADDITION TO HIS FINANCIAL MANAGEMENT RESPONSIBILITIES MR FOSS MOST RECENTLY WAS CHIEF FINANCIAL OFFICER AT CLOSELY HELD SHELTER SYSTEMS GROUP CORP HAINESPORT NJ 9309140145 930914 INTERNATIONAL DIFFICULT TIMES FORCE JAPANESE FIRMS TO SELL CHUNKS OF SHARES CUT PAYOUTS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A GROWING NUMBER OF JAPANESE COMPANIES ARE SELLING MAJOR CHUNKS OF THEIR SHARE PORTFOLIOS OR CUTTING DIVIDEND PAYMENTS AS JAPAN'S ECONOMY SHOWS NO SIGNS OF RECOVERY IN THE PAST WEEK NISSAN MOTOR CO AND NIPPON CREDIT BANK LTD SAID THEY WOULD SELL HUNDREDS OF MILLIONS OF DOLLARS OF SHARES THEY HOLD IN OTHER COMPANIES IN THE FIRST SEVEN MONTHS OF THIS YEAR JAPANESE BUSINESSES SOLD ABOUT 9 BILLION OF SUCH HOLDINGS ACCORDING TO THE TOKYO STOCK EXCHANGE SOME ANALYSTS SAY THE ASSET SALES RAISE THE PROSPECT OF SOMETHING THAT WAS ONCE UNTHINKABLE THE UNWINDING OF LONGHELD CROSSSHAREHOLDINGS OF JAPAN'S KEIRETSU CORPORATE GROUPS THE KEIRETSU ARE THE FOCUS OF COMPLAINTS BY THE US AND OTHER FOREIGN COMPANIES AND GOVERNMENTS WHICH COMPLAIN THAT THE CROSSSHAREHOLDINGS OFTEN EFFECTIVELY KEEP FOREIGN COMPETITORS FROM BREAKING INTO THE JAPANESE MARKET AT THE SAME TIME MORE THAN A DOZEN COMPANIES INCLUDING NIPPON STEEL CORP AND OTHER BIG STEELMAKERS HAVE SUSPENDED OR CUT THEIR DIVIDENDS TO CONSERVE CASH WHAT'S DRIVING THE STOCK SALES AND THE DIVIDEND CUTS IS A GROWING NEED FOR MONEY TO MEET CORPORATE EXPENSES WHILE JAPANESE COMPANIES HAVE BEEN TIGHTENING THEIR BELTS FOR MONTHS THE CUTBACKS APPARENTLY HAVEN'T KEPT PACE WITH THE ECONOMIC DECLINE DESPITE DWINDLING SALES AND PROFITS PAYROLLS AND OTHER CORPORATE EXPENSES REMAIN BLOATED AT COMPANIES THAT PROCLAIM THEIR DEDICATION TO SUCH POLICIES AS LIFETIME EMPLOYMENT SO FAR SOME OF THE MOST AGGRESSIVE MOVES ARE AMONG JAPAN'S AUTO MAKERS AND BANKS BOTH HIT HARD BY RECESSION GIANT AUTO MAKER NISSAN MOTOR CO WILL SELL SOMEWHERE BETWEEN 30 BILLION YEN 282 MILLION AND 60 BILLION YEN IN STOCKS SAYS SPOKESMAN KOJI OKUDA THE COMPANY WHICH HAS PROJECTED A 40 BILLION YEN LOSS FOR THE FISCAL FIRST HALF MUST SELL SOMETHING TO MAKE UP FOR OUR LOSSES SAYS MR OKUDA MAZDA MOTOR CORP WHICH IS BRACING FOR A POSSIBLE LOSS IN THE CURRENT FISCAL YEAR SAYS IT PLANS TO SELL ABOUT 10 BILLION YEN IN ASSETS INCLUDING STOCKS MORE SALES ARE IN THE WORKS NIPPON CREDIT BANK LTD WHICH PLANS TO WRITE OFF SOME 200 BILLION YEN IN BAD LOANS OVER THE NEXT THREE YEARS SAYS IT WILL COVER A MAJOR PORTION OF ITS WRITEOFF WITH STOCK SALES SUMITOMO METAL INDUSTRIES LTD SAYS IT HAS SOLD 11 BILLION YEN IN STOCK SINCE APRIL TO PARTIALLY OFFSET AN EXPECTED LOSS FOR THE HALF ENDING THIS MONTH AND INTENDS TO SELL AN UNSPECIFIED AMOUNT OF SHARES IN ITS SECOND HALF AS PART OF ITS PLAN TO BREAK EVEN DURING THE PERIOD THE SALES COME AMID MOUNTING EVICE THAT JAPANESE COMPANIES ARE USING UP CASH IN THE FIRST QUARTER THE MOST RECENT DATA AVAILABLE MAJOR JAPANESE COMPANIES HAD 1126 TRILLION YEN 106 BILLION IN CASH AND LIQUID DEPOSITS DOWN 44 FROM A YEAR EARLIER SINCE LATE 1990 ACCORDING TO SALOMON BROTHERS ASIA JAPANESE COMPANIES HAVE CONSUMED ABOUT 175 TRILLION YEN FROM THEIR CASH POSITIONS AN AMOUNT EQUAL TO 36 OF JAPAN'S GROSS NATIONAL PRODUCT MANY ANALYSTS THINK JAPAN'S ERODING CORPORATE PROFITS WILL CAUSE A SIGNIFICANT UNRAVELING OF THE CROSSSHAREHOLDINGS THERE ARE WIDESPREAD ESTIMATES THAT THIS FISCAL YEAR WILL SEE A FOURTH YEAR OF DECLINING CORPORATE PROFITS A POSTWAR RECORD IF CORPORATIONS FEEL THEY DON'T HAVE ENOUGH CASH THEY'LL HAVE TO SELL SHARES OF THEIR ALLIES SAYS TETSUO TSUKIMURA CHIEF ECONOMIST FOR JAPAN AT SMITH BARNEY SHEARSON INC IF THEY KEEP THEIR STABLE RELATIONSHIPS THEY'LL LOSE THEIR INTERNATIONAL COMPETITIVENESS THE SALES WILL GO ON FOR ANOTHER 10 YEARS SAYS CRAIG CHUDLER STRATEGIST AT UBS SECURITIES LTD MR CHUDLER THINKS THAT THE DEREGULATION OF JAPAN'S CAPITAL MARKETS IS ANOTHER REASON FOR THE STOCK SALES THE DEREGULATION HAS INCREASED BOND ISSUANCE OFFSHORE FINANCING AND EQUITYLINKED SALES AMONG OTHER NEW FINANCING METHODS A COMPANY USED TO OWN SHARES IN THE BANK IT RELIED ON FOR LOANS AS A SIGN OF GOODWILL BUT NOW MR CHUDLER SAYS THERE'S NO NEED TO HOLD ALL THESE SHARES TO GUARANTE FINANCING WHILE NO LONGER UNTHINKABLE SUCH ASSET SALES REMAIN UNPALATABLE MOST JAPANESE COMPANIES ARE COY ABOUT WHICH STOCKS THEY INTEND TO SELL AND SOME 40 OF SHARES IN THE 380 TRILLIONYEN JAPANESE STOCK MARKET ARE STILL HELD BY JAPANESE COMPANIES EVEN IF COMPANIES WERE TO SELL ALL THESE CROSSSHAREHOLDINGS IT WOULD TAKE MORE THAN FOUR YEARS OF DAILY SELLING GIVEN TOKYO'S LOW TRADING VOLUMES STILL SAYS A JAPANESE BANKER THE CURRENT ASSET SALES ARE A SIGNAL OF A NEW ERA WE USED TO BE RULED BY THE IDEA THAT ONCE WE HOLD A SHARE WE DON'T SELL IT SAYS AN OFFICIAL AT A MAJOR JAPANESE BANK THAT IDEA IS CHANGING 9309140144 930914 WHO'S NEWS APPLIED BIOSCIENCE INTERNATIONAL INC APPLIED BIOSCIENCE INTERNATIONAL INC ARLINGTON VA STEPHEN L WAECHTER 43 YEARS OLD WAS NAMED VICE PRESIDENT FOR FINANCE AND CHIEF FINANCIAL OFFICER AT THIS BIOLOGICAL SAFETY TESTING AND CLINICAL RESEARCH CONCERN MR WAECHTER SUCCEEDS ROBERT F AMUNDSEN FORMER CHIEF FINANCIAL OFFICER WHO RESIGNED TO PURSUE PRIVATE BUSINESS INTERESTS MR WAECHTER WAS VICE PRESIDENT FOR FINANCE AT GENERAL ELECTRIC INFORMATION SERVICES A UNIT OF GENERAL ELECTRIC CO 9309140143 930914 WHO'S NEWS FORD MOTOR CO FORD MOTOR CO DEARBORN MICH HENRY A NICKOL 61YEAROLD VICE PRESIDENT AND GENERAL MANAGER OF THIS AUTO MAKER'S NORTH AMERICAN VEHICLE OPERATIONS SAID HE WOULD RETIRE DEC 31 HE IS TO BE SUCCEEDED BY W DALE MCKEEHAN 55 GENERAL MANAGER OF FORD'S BODY AND ASSEMBLY OPERATIONS THE CHANGES ARE EFFECTIVE OCT 1 WHEN MR NICKOL WILL BE REASSIGNED TO WORK ON SELECTED STRATEGIC PLANNING MATTERS UNTIL HIS RETIREMENT MR NICKOL HAS HELD A NUMBER OF SENIOR MANAGEMENT POSITIONS DURING HIS 40YEAR CAREER WITH THE COMPANY 9309140142 930914 SONOCO PRODUCTS TO ACQUIRE ENGRAPH IN NEW MOVE INTO CONSUMER PACKAGING SONOCO PRODUCTS CO HARTSVILLE SC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ENGRAPH INC IN A TRANSACTION VALUED AT APPROXIMATELY 300 MILLION THE PACT CALLS FOR HOLDERS OF ENGRAPH BASED IN ATLANTA TO RECEIVE 1563 FOR EACH OF THEIR SHARES IN OVERTHECOUNTER TRADING YESTERDAY ENGRAPH JUMPED 2375 CLOSING AT 15375 SHARES OF SONOCO ALSO IN OTC TRADING FELL 50 CENTS TO 2250 FOR SONOCO A MAKER OF PACKAGING PRODUCTS PRIMARILY FOR INDUSTRIAL CUSTOMERS THE ACQUISITION OF ENGRAPH IS PART OF A MAJOR PUSH INTO CONSUMER PACKAGING WHILE SONOCO FOR INSTANCE MAKES TUBES CONES AND DRUMS FOR THE STORAGE OF INDUSTRIAL PRODUCTS SUCH AS TEXTILES ENGRAPH SPECIALIZES IN THE LABELING OF PACKAGES FOR SUCH CLIENTS AS SOFTDRINK SNACK FOOD AND DRUG COMPANIES LAST YEAR APPROXIMATELY TWOTHIRDS OF SONOCO'S 18 BILLION IN SALES CAME IN THE INDUSTRIAL SECTOR BUT THE COMPANY HAS SAID IT EVENTUALLY WANTS CONSUMER PACKAGING TO MAKE UP HALF ITS SALES THE ENGRAPH ACQUISITION WILL TAKE THAT FIGURE UP TO 40 ACCORDING TO SONOCO FOR ENGRAPH WHOSE 1992 SALES EXCEEDED 235 MILLION THE TRANSACTION MAY REPRESENT GREATER ACCESS TO CAPITAL AND NEW OPPORTUNITIES FOR SALES OVERSEAS SONOCO OPERATES IN 22 COUNTRIES WHILE ENGRAPH HAS CONCENTRATED ALMOST EXCLUSIVELY ON DOMESTIC MARKETS SONOCO CAN TAKE THE ENGRAPH MARKETING TO A NEW LEVEL SAID RICHARD S PALM AT MERRILL LYNCH & CO IN NEW YORK ANALYSTS GENERALLY PRAISED THE PLANNED ACQUISITION BUT SOME QUESTIONED THE SHORTTERM VALUE FOR SONOCO SHAREHOLDERS AT THE PRICE SONOCO IS PAYING THE COMPANY EXPECTS 1994 EARNINGS TO BE DILUTED BY APPROXIMATELY 4 SONOCO ADDED THAT IT EXPECTS THAT FIGURE TO DECLINE IN 1995 AND ANTICIPATES NO DILUTION IN 1996 9309140141 930914 WORKPLACE CONCERNS FIGHT TO BE CALLED BEST FOR MOMS BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF AMERICA'S HOTTEST CORPORATE COMPETITIONS CONCLUDES THIS WEEK PROMISING TO SHED NEW LIGHT ON COMPANIES' UNEVEN EFFORTS TO BECOME FAMILY FRIENDLY THE RACE FOR A LISTING AS ONE OF WORKING MOTHER MAGAZINE'S 100 BEST COMPANIES FOR WORKING MOTHERS HAS BEEN HARDER FOUGHT THIS YEAR THAN EVER MORE THAN 1000 INQUIRIES POURED INTO THE MAGAZINE'S MANHATTAN OFFICES MORE THAN DOUBLE THE NUMBER LAST YEAR AFTER EXPANDING THE LIST EVERY YEAR SINCE IT BEGAN IN 1985 WITH 35 COMPANIES THE MAGAZINE CAPPED IT THIS YEAR AT 100 INTENSIFYING THE RIVALRY WE HAD MUCH ROUGHER COMPETITION AND MANY MORE DROPS THAN EVER TO MAKE ROOM FOR NEW COMPANIES SAYS MILTON MOSKOWITZ ONE OF TWO MILL VALLEY CALIF FREELANCE WRITERS WHO COMPILE THE LIST RESULTS WILL BE RELEASED WEDNESDAY THE FREEFORALL REFLECTS THE GROWING IMPORTANCE MANY EMPLOYERS PLACE ON A FAMILYFRIENDLY IMAGE THERE ARE COMPANIES THAT TREAT THIS LIKE THE MALCOLM BALDRIGE AWARD THE COMMERCE DEPARTMENT'S PRESTIGIOUS QUALITYMANAGEMENT CITATION THEY GO AFTER IT WITH ALL SORTS OF PR SAYS SUSAN DOCTORS VICE PRESIDENT HUMAN RESOURCES FOR OFFICIAL AIRLINE GUIDES INC AN OAK BROOK ILL APPLICANT THAT HAS BEEN ON THE LIST IN THE PAST INCREASINGLY THE COMPETITION ALSO EXPOSES THE FAULT LINES IN CORPORATE WORKFAMILY POLICIES PROVIDING ONE OF THE FEW WAYS OF HOLDING COMPANIES ACCOUNTABLE AMID A TREND THAT HAS BEEN HEAVILY INFLATED BY HYPE THOUGH APPLICANTS FOR THE WORKING MOTHER LIST ARE ADDING FLEXIBLE SCHEDULING CHILD CARE AND OTHER PROGRAMS AT A RAPID RATE THE NEW POLICIES AT MANY COMPANIES LACK DEPTH SAY MR MOSKOWITZ AND COAUTHOR CAROL TOWNSEND AT MANY COMPANIES ONLY HEADQUARTERS WORKERS ARE ELIGIBLE AT OTHERS ONLY A TINY MINORITY OF WORKERS FEEL FREE TO USE FLEXIBLE SCHEDULING JOB SHARING FAMILY LEAVE AND OTHER BENEFITS WITHOUT RISKING THEIR JOB OR CAREER PROGRESS PARTICULARLY AMID THIS YEAR'S HEAVY LAYOFFS THE BIGGEST PROBLEM NOW IS THAT HAVING POLICIES IS ONE THING BUT SHOWING THEY ARE ACTUALLY IN USE AND AVAILABLE TO LARGE NUMBERS OF PEOPLE IS ANOTHER MR MOSKOWITZ SAYS A LOT OF IT IS JUST TALK AT MANY COMPANIES THE NUMBER OF EMPLOYEES USING FAMILYFRIENDLY POLICIES IS SO SMALL IT'S SHOCKING HE SAYS SOME PAST LISTINGS HAVE SPARKED A BACKLASH ANGRY EMPLOYEES WROTE LETTERS TO THE JUDGES ABOUT FIVE OF THE COMPANIES LISTED LAST YEAR AFTER A FLURRY OF MEETINGS FAXES PHONE CALLS AND EXPLANATIONS FROM THE COMPANIES THREE OF THEM ARE NOW BACK ON THE LIST THIS YEAR MR MOSKOWITZ SAYS SPRINT CORP THE TARGET OF A UNION ORGANIZING DRIVE WAS AMONG THOSE WHOSE LISTING DREW A BROADSIDE FROM EMPLOYEES WHEN GLORIA MELTON A LONGDISTANCE OPERATOR FOR SPRINT IN JACKSONVILLE FLA SAW THE MAGAZINE'S DESCRIPTIONS OF THE KANSAS CITY MO COMPANY'S FLEXTIME AND JOBSHARING PROGRAMS I ALONG WITH ALL MY FRIENDS WONDERED EXACTLY WHICH SPRINT COMPANY THEY WERE TALKING ABOUT MS MELTON SAYS THE ONLY THING WE COULD FIGURE OUT IS THAT THOSE POLICIES WERE FOR MANAGEMENT IT'S CERTAINLY NOT FOR THE REGULAR PEOPLE LIKE US MS MELTON A LOCAL ORGANIZER FOR COMMUNICATION WORKERS OF AMERICA FAULTS THE COMPANY FOR CHANGING WORKERS' SCHEDULES WITH LESS THAN TWO WEEKS NOTICE PREVENTING PARENTS FROM MAKING CONSISTENT CHILDCARE ARRANGEMENTS THE UNION ALSO SAYS SPRINT PAYS ITS RANKANDFILE EMPLOYEES ABOUT 7000 A YEAR LESS THAN UNIONIZED COMPETITORS ANNE KINNEY MANAGER OF CORPORATE EMPLOYEE RELATIONS FOR SPRINT SAYS THE COMPANY'S WORKFAMILY BENEFITS SUCH AS ADOPTION ASSISTANCE AND PRETAX SETASIDE ACCOUNTS FOR CHILDCARE EXPENSES ARE AVAILABLE TO ALL EMPLOYEES BUT SPRINT'S FLEXIBLESCHEDULING PRACTICES DON'T WORK IN SOME UNITS THAT HAVE TO MAINTAIN CERTAIN SCHEDULES TO MEET CUSTOMER NEEDS SHE SAYS SPRINT TRIES TO GIVE EMPLOYEES AS MUCH NOTICE AS POSSIBLE OF SCHEDULE CHANGES BUT SOME HEAVY PERIODS SUCH AS DURING FLOODS OR HURRICANES AREN'T POSSIBLE TO FORECAST A SPOKESMAN SAYS THE COMPANY ALSO SAYS ITS PAY IS COMPETITIVE WITH OTHER TELECOMMUNICATIONS COMPANIES SPRINT CONTINUES TO EXPAND WORKFAMILY PROGRAMS KEEPING AN EAR TO THE NEEDS OF OUR EMPLOYEES MS KINNEY ADDS CLEARLY COMPANIES HAVE TO DO A LOT MORE TO WIN A LISTING TODAY THAN EVEN A COUPLE OF YEARS AGO THE STANDARDS FOR THE LIST'S MAJOR PERFORMANCE CATEGORIES PAY AND ADVANCEMENT OPPORTUNITIES FOR WOMEN CHILDCARE PROGRAMS AND FAMILY FRIENDLY BENEFITS INCLUDING FOR THE FIRST TIME THIS YEAR ELDER CARE PROGRAMS HAVE RISEN SHARPLY SAYS BETTY HOLCOMB DEPUTY EDITOR OF WORKING MOTHER AS A RESULT NEARLY 60 OF THE HIGHEST PAID WORKERS AT SOME COMPANIES ON THIS YEAR'S LIST ARE WOMEN COMPARED WITH ABOUT 5 AT MOST BIG COMPANIES SHE SAYS THE MAGAZINE IS LOOKING HARDER AT ENTRANTS' TRACK RECORD IN PROMOTING WOMEN A LOT OF COMPANIES HAVE SAID FOR YEARS AND YEARS THAT WE CAN'T INCREASE WOMEN IN UPPER MANAGEMENT UNTIL THEY'RE IN THE PIPELINE IN GREATER NUMBERS' MR MOSKOWITZ SAYS BUT YOU CAN'T JUST SAY THAT YEAR AFTER YEAR WITHOUT SOMETHING HAPPENING AS APPLICANTS HAVE INCREASED MR MOSKOWITZ AND MS TOWNSEND ALSO ARE TAKING A TOUGHER LOOK AT HOW COMPANIES PUT POLICIES INTO EFFECT SOME EMPLOYERS CLAIMING JOBPROTECTED FAMILY LEAVE FOR INSTANCE TOLD MS TOWNSEND THAT THE JOB GUARANTEE EVAPORATES IN THE FACE OF A LAYOFF OTHERS SAID WE WON'T LET THE EMPLOYEE GO DURING THE LEAVE BUT THEY MIGHT BE LAID OFF ON THE DAY THEY COME BACK SHE SAYS SUCH PRACTICES WEAKEN THE COMPANY'S CHANCES SHE SAYS A GROWING NUMBER OF COMPANIES ARE BEGINNING TO FEAR MAKING THE LIST ONE YEAR AND BEING KNOCKED OFF THE NEXT IT'S A TWOEDGED SWORD ONCE YOU'RE ON THE LIST YOU FEEL A LOT OF PRESSURE TO MAINTAIN IT SAYS PATRICIA NAZEMETZ DIRECTOR OF BENEFITS FOR XEROX CORP ONE OF 12 COMPANIES THAT HAVE BEEN INCLUDED ON THE LIST EVERY YEAR SINCE IT BEGAN FALLING OFF BECOMES MORE PAINFUL THAN NOT HAVING GOTTEN ON DESPITE THE RISKS APPLICATION PITCHES ROSE TO AN UPROAR THIS YEAR ONE COMPANY HIRED PUBLICRELATIONS GIANT HILL & KNOWLTON TO PRESS ITS CAUSE WITH THE MAGAZINE'S EDITORS AN EXECUTIVE OF AN EAST COAST COMPANY BOMBARDED MR MOSKOWITZ WITH A TWOHOUR SLIDE SHOW AT THE SAN FRANCISCO AIRPORT ANOTHER APPLICANT A VICE PRESIDENT OF A FORTUNE 500 COMPANY WROTE A LETTER PLEADING ONE OF MY 20TH CENTURY OBJECTIVES IS TO MAKE YOUR 100 BEST COMPANIES' LIST BUT I'M RUNNING OUT OF TIME AND I NEED YOUR HELP ONE ENTRANT EVEN GOT A LETTER FROM OREGON GOV BARBARA ROBERTS LAUDING ITS VIRTUES AS AN EMPLOYER TYLER PHILLIPS PRESIDENT OF THE PARTNERSHIP GROUP A BIG LANSDALE PA WORKFAMILY CONSULTANT SAYS THE NUMBER OF CLIENTS ASKING HIS FIRM FOR HELP IN GETTING ON THE LIST HAS GONE UP A LOT FOR SOME COMPANIES IT'S AN ISSUE OF IMAGE LIKE GET ME A GOOD SEAT AT THE THEATRE I HATE THE THEATRE BUT I WANT TO BE SEEN IN A BOX SEAT' MR PHILLIPS SAYS HE CAUTIONS THEM THAT APPLYING IS NOT LIKE JOINING THE TOTALQUALITY ZERO DEFECTS CLUB BUT REQUIRES A VERY RIGOROUS SELFREVIEW COMPANIES ARE SPENDING FAR MORE TIME ON THEIR APPLICATIONS AFTER BEING DROPPED FROM THE LIST IN 1992 OFFICIAL AIRLINE GUIDES PAID A LOT MORE ATTENTION TO FILLING OUT THE APPLICATION THIS YEAR DESCRIBING SUMMERJOB PROGRAMS FOR EMPLOYEES' CHILDREN AND OTHER BENEFITS IN ADDITION TO ITS CHILDCARE CENTER AND FLEXIBLE HOURS MS DOCTORS SAYS HOWEVER OTHERS WEARY OF THE DEMANDS OF APPLYING FOR THE GROWING ARRAY OF CORPORATE AWARDS HAVE SIMPLY DROPPED OUT WESTINGHOUSE ELECTRIC CORP A 1991 WORKING MOTHER LISTEE THAT RECEIVED THE LABOR DEPARTMENT'S EVE AWARD IN 1990 AND ITS OPPORTUNITY 2000 AWARD IN 1992 BOTH FOR EXCELLENCE IN AFFIRMATIVEACTION PROGRAMS DROPPED OUT OF THE WORKING MOTHER COMPETITION LAST YEAR AFTER CORPORATE STAFF CUTBACKS THE FEELING WAS WE DIDN'T HAVE THE RESOURCES TO FILL OUT AN APPLICATION A SPOKESMAN SAYS 9309140140 930914 INTERNATIONAL KAWASAKI ABB PLAN VENTURE TOKYO KAWASAKI HEAVY INDUSTRIES LTD A JAPANESE SHIPBUILDING AND HEAVY MACHINERY MAKER AGREED ON A JOINT VENTURE WITH ABB ASEA BROWN BOVERI LTD TO MANUFACTURE GAS TURBINES DEVELOPED BY THE SWISS MAKER THE COMPANY WILL BE ESTABLISHED IN KOBE CITY IN WESTERN JAPAN IN JANUARY AT A CAPITALIZATION OF 15 BILLION YEN 141 MILLION OF WHICH KAWASAKI WILL HOLD 40 AND ABB WILL OWN 60 THE JOINT VENTURE WILL MANUFACTURE AND PROVIDE MAINTENANCE SERVICE FOR ABB'S NEW TURBINES USED BY ELECTRIC POWER COMPANIES THE NEW TURBINES GT24 AND GT26 MODELS POSSESS SOME OF THE GREATEST GENERATING CAPACITY IN THE WORLD REACHING AS MUCH AS 240000 KILOWATTS KAWASAKI SAID THE PRODUCTS WILL BE MARKETED THROUGHOUT JAPAN AND SOUTHEAST ASIA BY KAWASAKI AND ABB 9309140139 930914 LASER PHOTONICS ASKS TWO OFFICIALS TO RESIGN FINANCES QUESTIONED ORLANDO FLALASER PHOTONICS INC SAID IT DISCOVERED DISCREPANCIES IN RECENT FINANCIAL STATEMENTS AND THAT BOTH ITS PRESIDENT AND ITS CHIEF FINANCIAL OFFICER RESIGNED AT THE REQUEST OF THE COMPANY THE MAKER OF LASERS FOR MEDICAL AND SCIENTIFIC MARKETS SAID ITS EARNINGS STATEMENTS FOR THE FIRST AND SECOND QUARTERS OF 1993 AS WELL AS FOR ALL OF 1992 CANNOT BE RELIED UPON AND THAT SALES AND INCOME WOULD BE NEGATIVELY AFFECTED TRADING IN LASER PHOTONICS STOCK WAS SUSPENDED YESTERDAY AT THE REQUEST OF THE COMPANY BEFORE THE HALT THE COMPANY'S STOCK WAS DOWN 5 AT 1125 IN OVERTHECOUNTER TRADING OUTSIDE AUDITOR COOPERS & LYBRAND IS ASSESSING THE EFFECT OF THE DISCREPENCIES MARK T FUKUHARA PRESIDENT AND CHIEF EXECUTIVE STEPPED DOWN AS DID ANDREW J O'CONNELL CHIEF FINANCIAL OFFICER ROBERT ANSELMO SENIOR VICE PRESIDENTADMINISTRATION WILL SERVE AS ACTING PRESIDENT AND ELROY MCCONNELL CONTROLLER WILL ASSUME ADDITIONAL FINANCIAL RESPONSIBILITIES OFFICIALS AT LASER PHOTONICS DIDN'T RETURN CALLS MR O'CONNELL REACHED BY TELEPHONE AT HIS HOME DECLINED TO COMMENT MESSRS FUKUHARA ANSELMO AND MCCONNELL COULDN'T BE REACHED FOR COMMENT FOR THE SECOND QUARTER LASER PHOTONICS REPORTED A NET LOSS OF 1 MILLION OR 16 CENTS A SHARE COMPARED WITH EARNINGS OF 201000 OR FOUR CENTS A SHARE A YEAR EARLIER SALES FELL 52 TO 14 MILLION FOR THE FIRST QUARTER OF 1993 IT REPORTED A LOSS OF 337000 OR FIVE CENTS A SHARE COMPARED WITH EARNINGS OF 11 MILLION OR 22 CENTS A SHARE A YEAR EARLIER SALES DROPPED 27 TO 22 MILLION FOR 1992 LASER PHOTONICS REPORTED A PROFIT OF 173000 OR THREE CENTS A SHARE COMPARED WITH A LOSS OF 14 MILLION OR 31 CENTS A SHARE A YEAR EARLIER SALES FELL 81 TO 102 MILLION 9309140138 930914 TECHNOLOGY AND HEALTH LILLY FAILS TO MEET FDA'S DEMANDS FOR HEART DEVICE BY THOMAS M BURTON AND WILLIAM POWER STAFF REPORTERS OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION SAYS ELI LILLY & CO STILL HASN'T FULLY CORRECTED PRODUCTION FAILURES ON ITS LIFEPAK 9 EMERGENCY DEFIBRILLATOR DELAYING ANY RESUMED SALES THE AGENCY HAD HALTED ALL MANUFACTURING AT LILLY'S PHYSIO CONTROL CORP PLANT NEAR SEATTLE IN MAY 1992 AFTER A HIGHLY CRITICAL INSPECTION FOUND EXTENSIVE BREAKDOWNS IN MANUFACTURING PROCESSES AT THE FACILITY A RECENT REINSPECTION FOUND THE LILLY UNIT STILL HASN'T SUCCESSFULLY ASSURED THE AGENCY THE LIFEPAK 9 ELECTROSHOCK MACHINES ARE RELIABLE THE FDA FOUND THE INDIANAPOLIS COMPANY'S QUALITY ASSURANCE COULDN'T YET ELIMINATE THE PRODUCTION PROBLEMS RESULTING IN SYSTEMATIC FAILURE OF CERTAIN COMPONENTS OF SOME OF THE MACHINES THE FINDINGS ALSO AFFECTED A RELATED MODEL CALLED THE 9P BOTH ARE USED TO RESUSCITATE HOSPITAL PATIENTS NEAR DEATH PHYSIO'S MISHAPS HAVE PLAYED A BIG ROLE IN RECENT DISAPPOINTING EARNINGS AT LILLY THIS MAY THE AGENCY ALLOWED LILLY TO RESUME SHIPPING A RELATED BUT MORE PORTABLE MACHINE THE LIFEPAK 10 USED BY PARAMEDICS TO RESUSCITATE PATIENTS WHOSE HEARTS HAVE STOPPED BEATING OR ARE FIBRILLATING BEATING SO FAST THAT THEY BARELY PUMP BLOOD BUT THE MOST RECENT INSPECTION OF PRODUCTION FACILITIES FOR THE LIFEPAK 9 AND 9P LIKELY WILL DELAY THEIR REENTRY ONTO THE MARKET FOR SOME TIME THE FDA'S LATEST FINDINGS MAY BE GOOD NEWS FOR LILLY'S COMPETITORS IN THE DEFIBRILLATOR MARKET SHARES IN RIVAL ZOLL MEDICAL CORP OF BURLINGTON MASS FOR EXAMPLE HAD ALREADY BEEN RISING ON RUMORS THAT THE FDA REPORT WOULD CAUSE PROBLEMS FOR LILLY THE ZOLL SHARES ROSE A TOTAL OF 10 LAST THURSDAY AND FRIDAY IN NASDAQ TRADING TO A RECORD 36 A SHARE BEFORE EASING 75 CENTS TO 3525 YESTERDAY TRADERS SAID THEY BOUGHT ZOLL STOCK LAST WEEK ON THE EXPECTATION THAT THE BURLINGTON MASS COMPANY WILL BENEFIT FROM ANY DELAY LILLY HAS IN SHIPPING ITS LIFEPAK PRODUCTS SUCH BULLISHNESS HAS PUSHED UP ZOLL STOCK TO A VALUATION OF 66 TIMES REPORTED EARNINGS LIKE THE LIFEPAK 10 THE LIFEPAK 9 AND 9P TOGETHER HAD SALES OF ROUGHLY 60 MILLION ANNUALLY BEFORE THEY WERE PULLED FROM THE MARKET ALSO LILLY HASN'T RESUMED SALES OF ANOTHER DEFIBRILLATOR THE LIFEPAK 300 WHICH WAS GENERATING ABOUT 30 MILLION IN YEARLY SALES THE FDA REPORT FOUND THE COMPANY STILL HASN'T ENSURED THAT COMPONENTS LIKE CERTAIN RESISTORS AND CAPACITORS IN SOME LIFEPAK 9 MACHINES WILL ALWAYS WORK PROPERLY BUT THE AGENCY'S CRITICISMS WEREN'T NEARLY AS SWEEPING AS THOSE OF A YEAR AGO TO EXPECT THE FDA TO WRITE UP NOTHING WOULD BE UNREALISTIC SAID RICHARD O MARTIN PHYSIO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SAID LILLY HAS RESPONDED TO THE FDA REPORT IS SEEKING A MEETING SOON WITH THE AGENCY AND HOPES TO RESUME THE SALE OF THE LIFEPAK 9 AND 9P QUICKLY THE AGENCY STILL HAS TO EVALUATE ANY RENEWED PRODUCTION OF THE LIFEPAK 300 9309140137 930914 BLACK & DECKER GETS CONTRACT MCLEAN VA BLACK & DECKER CORP'S PRC COMPUTER UNIT SAID IT RECEIVED A FIVEYEAR CONTRACT FROM THE JOHN A VOLPE TRANSPORTATION CENTER IN CAMBRIDGE MASS TO PROVIDE OPERATIONS RESEARCH AND ANALYSIS SUPPORT IN A NEWS RELEASE THE COMPANY SAID THE CONTRACT IS POTENTIALLY WORTH AS MUCH AS 76 MILLION A SPOKESMAN WAS NOT IMMEDIATELY ABLE TO OUTLINE FINANCIAL SPECIFICS OF THE AGREEMENT UNDER TERMS OF THE CONTRACT PRC WILL ASSIST THE VOLPE CENTER IN HUMAN PERFORMANCE MODELING ECONOMIC AND REGULATORY ANALYSIS SAFETY AND SECURITY ENVIRONMENTAL ANALYSIS AND DISTRIBUTION LOGISTICS 9309140136 930914 INTERNATIONAL DSM TO CUT OUTPUT AT FACILITY AMSTERDAM DUTCH CHEMICAL MAKER DSM NV SAID IT WILL CUT OUTPUT ABOUT 40 AT ONE OF ITS FERTILIZER FACILITIES JAN 1 IN ADDITION IT WILL CLOSE A BIG AMMONIA PRODUCTION UNIT AT THE SAME DUTCH COMPLEX ABOUT 225 JOBS WILL BE CUT AS A RESULT OF THE MOVES DSM TOOK THE STEP BECAUSE OF THE DECLINE IN FERTILIZER CONSUMPTION IN WESTERN EUROPE AND A CONSIDERABLE INCREASE IN LOWPRICED IMPORTS ESPECIALLY FROM EASTERN EUROPE IT SAID IT EXPECTS THE SITUATION TO WORSEN IN THE COMING YEARS DSM LIKE OTHER MAJOR EUROPEAN PRODUCERS OF FERTILIZERS AND BULK CHEMICALS HAS BEEN HIT HARD BY RECESSION AND A SUBSTANTIAL OVERSUPPLY IN ITS MARKETS 9309140135 930914 PHILADELPHIA ELECTRIC SPENDING PHILADELPHIA PHILADELPHIA ELECTRIC CO SAID IT WILL SPEND 244 MILLION TO UPGRADE TWO OF ITS FOUR UNITS AT THE EDDYSTONE GENERATING STATION IN DELAWARE COUNTY THE ELECTRIC UTILITY SAID THE UPGRADE WOULD ALLOW EDDYSTONE UNITS 3 AND 4 WHICH PRODUCE 380 MEGAWATTS OF POWER TO USE NATURAL GAS OIL OR A BLEND OF FUELS CURRENTLY THE TWO UNITS MUST USE A CERTAIN OIL FUEL PHILADELPHIA ELECTRIC SAID THE CONVERSION WOULD SAVE IT 3 MILLION TO 6 MILLION A YEAR IN FUEL COSTS MOREOVER THE COMPANY SAID THE CONVERSION WILL REDUCE SULFUR DIOXIDE AND OTHER EMISSIONS 9309140134 930914 CREDIT MARKETS BOND MARKET SHRUGS OFF PLUNGE IN GOLD PRICES ENDS LITTLE CHANGED AS INVESTORS ANTICIPATE CPI BY JOHN HUGHES AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK DESPITE A SHARP DROP IN GOLD PRICES TREASURY NOTES AND BONDS ENDED LITTLE CHANGED YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND CLOSED AT 105 6/32 TO YIELD 588 UNCHANGED FROM FRIDAY THE 10YEAR NOTE DROPPED 1/32 POINT TO END THE DAY AT 103 17/32 TO YIELD 528 ALSO EVEN WITH FRIDAY DROPPING GOLD PRICES ARE OFTEN TAKEN AS A SIGN OF WANING INFLATIONARY PRESSURES WHICH IS GOOD FOR BONDS INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT BOND PRICES REACTED LITTLE TO NEWS THAT THE DECEMBER GOLD CONTRACT ON NEW YORK'S COMMODITY EXCHANGE PLUNGED 760 TO 34480 PER OUNCE INVESTORS ARE FOCUSING INSTEAD ON THE CONSUMER PRICE INDEX WHICH IS SLATED TO BE RELEASED TODAY THE INFLATION MEASURE COULD PUSH BOND PRICES HIGHER IF IT CONFIRMS OTHER REPORTS OF SUBDUED INFLATION LAST WEEK A WEAKERTHANEXPECTED REPORT ON PRODUCER PRICES HELPED FUEL A MARKET RALLY WHICH PUSHED UP BOND PRICES MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH 1000 FACE VALUE THE VOLUME OF TRADING WAS LOW YESTERDAY PARTLY BECAUSE INVESTORS ARE WAITING TO SEE THE CPI REPORT EVERYONE'S WAITING FOR CPI BUT THE BELIEF IS IT'S NOT GOING TO BE A PROBLEM FOR THE BOND MARKET AND THERE SHOULD BE NO MAJOR PULLBACK SAID MARILYN SCHAJA ECONOMIST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT EXPECT THE CONSUMER PRICE INDEX TO SHOW A GAIN OF 01 IN AUGUST THE SAME AS IN JULY EVEN THOUGH THE INDEX ISN'T EXPECTED TO BE SHARPLY HIGHER MANY IN THE BOND MARKETS ARE NERVOUS ANYWAY SOME ECONOMISTS SAID THE TREASURY MARKET RESEMBLES A LOADED GUN THESE DAYS IT ONLY REMAINS TO BE SEEN WHAT TRIGGERS A CORRECTION AND PUSHES BOND YIELDS UP AS PRICES FALL SHARPLY MANY BELIEVE THAT THE MARKET IS DUE FOR A CORRECTION SIMPLY BECAUSE RATES HAVE FALLEN SO FAR SO FAST THAT INVESTORS HAVEN'T HAD A CHANCE TO CALMLY ASSESS THE VALUE OF A 30YEAR BOND YIELDING A FULL PERCENTAGE POINT LESS THAN WHAT IT YIELDED LESS THAN THREE MONTHS AGO THERE'S BEEN A STAMPEDE BY INVESTORS TO EXTEND MATURITIES A CORRECTION IS OVERDUE SAID MICHAEL METZ ECONOMIST WITH OPPENHEIMER & CO MR METZ SAID THE CURRENT MARKET PSYCHOLOGY WAS MORE CONSISTENT WITH THE END OF A RALLY THAN WITH THE BEGINNING OF ONE THERE'S NOT A PORTFOLIO MANAGER OUT THERE WITH A MEANINGFUL INFLOW OF CASH WHO'S NOT WORRIED THAT THE MARKET HAS COME SO FAR SO FAST SAID HUGH JOHNSON ECONOMIST WITH FIRST ALBANY CORP ALBANY NY YOU ALMOST KNOW THE MARKET'S ADVANCE IS OVER SO YOU HATE TO BUY TODAY AND GET SHELLACKED TOMORROW HE ADDED MR JOHNSON SAID IT WOULDN'T TAKE MUCH OF A BAD NUMBER TO CAUSE A REVERSAL IN THE BOND MARKET WHICH CURRENTLY IS EXTREMELY VOLATILE WE'RE VULNERABLE TO A SHARP CORRECTION AND PEOPLE ARE GUN SHY NO ONE WANTS TO GET CAUGHT HE SAID TRADERS REMEMBER WHAT HAPPENED LAST THURSDAY THE DAY BEFORE THE PRODUCER PRICE INDEX WAS RELEASED ON THAT DAY WITH LITTLE IN THE WAY OF SIGNIFICANT NEGATIVE NEWS TO DIGEST BOND PRICES PLUNGED MORE THAN A POINT WITH ONLY A SMALL DECLINE IN INITIAL JOBLESS CLAIMS THE MARKET SANK LIKE A STONE IT'S GOING TO BE TOUGH TO SUSTAIN THESE LOW INTEREST RATES SAID CHARLES LIEBERMAN AN ECONOMIST WITH CHEMICAL SECURITIES INC LAST THURSDAY WAS A SIGNIFICANT DAY IN THE SENSE THAT IT REINFORCES THAT THE MARKET IS STRETCHED TOO THIN HE SAID MR LIEBERMAN DISMISSED ARGUMENTS THAT LONGTERM INTEREST RATES REMAIN HIGH ON A HISTORICAL BASIS SAYING THE FEDERAL BUDGET DEFICIT NOW PLAYS MORE OF A ROLE AND THAT HEALTHCARE REFORM COSTS HAVE TO BE FACTORED IN MEANWHILE YESTERDAY THE TREASURY SOLD 2262 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION 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 BOTH ISSUES ARE DATED SEPT 16 THE 13WEEK BILLS MATURE DEC 16 1993 AND THE 26WEEK BILLS MATURE MARCH 17 1993 THE CORPORATE NEW DEBT ARENA WAS MODERATELY ACTIVE YESTERDAY AS COMPANIES OFFERED ABOUT 125 BILLION IN NEW ISSUES ANOTHER 561 MILLION OF AGENCY PAPER WAS SOLD AS WELL PACIFIC GAS & ELECTRIC CO SOLD 700 MILLION OF SECURITIES IN A TWO PART OFFERING WHILE ASSOCIATES CORP OF NORTH AMERICA AND HELLER FINANCIAL INC SOLD A TOTAL OF 500 MILLION OF NOTES MATURING IN 6 1/2 YEARS MEANWHILE THE PRICES OF BONDS FROM VIACOM INC JUMPED WHILE THOSE ISSUED BY PARAMOUNT COMMUNICATIONS INC FELL IN REACTION TO NEWS OF VIACOM'S AGREEMENT TO PURCHASE PARAMOUNT FOR 79 BILLION THE PRICE MOVES MAY HAVE BEEN EXAGGERATED BY LIGHT TRADING VOLUME DUE TO UNCERTAINTY ABOUT WHETHER THE DEAL WILL BE COMPLETED BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP PLACED VIACOM'S DEBT UNDER REVIEW FOR A POSSIBLE UPGRADE ON THE OTHER HAND PARAMOUNT'S DEBT RATINGS WERE PLACED ON REVIEW FOR POSSIBLE DOWNGRADE BY MOODY'S WHILE S&P AFFIRMED ITS RATINGS PRICES WERE LITTLE CHANGED IN THE INVESTMENTGRADE MARKET BUT SIGNS OF WEAKNESS CONTINUE TO PLAGUE THE JUNK BOND MARKET BECAUSE OF FEARS OF AN UPCOMING FLOOD OF NEW ISSUES JUNK BOND PRICES DROPPED ABOUT 1/4 POINT YESTERDAY MUNICIPAL BONDS WERE UNCHANGED TO 1/4 POINT FIRMER IN YESTERDAY'S SLOW TRADING TAXEXEMPT BONDS CLIMBED STEADILY DUE TO THE TREASURY MARKET'S STRONG PERFORMANCE EVIDENCE OF ABATING INFLATIONARY PRESSURES AND RECENTLY ENACTED FEDERAL INCOME TAX INCREASES STILL MUNI SPECIALISTS SAY THERE COULD BE FURTHER GAINS IN THE US GOVERNMENT BOND MARKET THE 625 30YEAR BOND WAS 2/32 HIGHER AT 105 10/32 YIELDING 587 BABYLON NY'S 125 MILLION 1993 WASTE FACILITIES GENERAL OBLIGATION BONDS WERE PRICED BY A SMITH BARNEY SHEARSON GROUP AND GIVEN YIELDS RANGING FROM 310 IN 1995 TO 525 FOR ZEROCOUPON BONDS DUE IN 2010 CURRENTCOUPON MORTGAGE SECURITIES FINISHED A LITTLE BETTER YET ARE STILL LOSING GROUND IN RELATION TO COMPARABLE TREASURYS A LACK OF A BID FOR COLLATERAL TO BACK NEW REAL ESTATE INVESTMENT CONDUITS CONTRIBUTED TO THE WIDENING TRADERS SAID AMONG PRICES OF CURRENT COUPONS FOR OCTOBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ROSE 2/32 TO 99 9/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 BOTH ROSE 1/8 POINT TO 98 27/32 AND 98 23/32 RESPECTIVELY MEANWHILE IN THE ASSETBACKED MARKET A 105 BILLION OFFERING WAS PRICED BY CHRYSLER CORP AND BACKED BY AUTO LOANS THAT HAVE YET TO BE ORIGINATED THE OFFERING WILL BE THE FIRST RETAIL AUTOLOAN TRANSACTION TO RELY COMPLETELY ON A COMMON TECHNIQUE KNOWN AS A PREFUNDING ACCOUNTCASH PUT ASIDE AT THE START OF A DEAL FOR THE LATER PURCHASE OF AUTO AND TRUCK LOANS LOANS CAN BE BOUGHT FOR THE ACCOUNT DAILY 9309140133 930914 USX UNIT HALTS WORK ON WELL HOUSTON MARATHON OIL UK LTD SUSPENDED EXPLORATION OF A DISCOVERY WELL LOCATED 155 MILES NORTHEAST OF ABERDEEN SCOTLAND THE WELL WHICH LIES FIVE MILES SOUTH OF MARATHON'S EAST BRAE PLATFORM WAS DRILLED TO A DEPTH OF ABOUT 17000 FEET IT WASN'T DRILLSTEM TESTED AND WORK IS CONTINUING TO FURTHER EVALUATE THE EXTENT OF THIS DISCOVERY MARATHON SAID MARATHON OIL UK IS A UNIT OF USX MARATHON GROUP WHICH IS A UNIT OF USX CORP 9309140132 930914 CALIFORNIA SET TO IMPLEMENT TAX REFORM IN AN EFFORT TO IMPROVE BUSINESS CLIMATE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SACRAMENTO CALIF IN AN EFFORT TO MAKE CALIFORNIA MORE HOSPITABLE TO BUSINESS GOV PETE WILSON SAID HE WILL SIGN A BILL MANDATING SWEEPING TAX REFORMS INCLUDING A GUTTING OF THE STATE'S CONTROVERSIAL UNITARY TAX ON MULTINATIONAL CORPORATIONS THE BILL PASSED OVER THE WEEKEND BY THE STATE LEGISLATURE WITH BIPARTISAN SUPPORT NOW AWAITS MR WILSON'S SIGNATURE AS EARLY AS NEXT WEEK THE BILL ALSO CALLS AMONG OTHER THINGS FOR AN EXPANDED RESEARCHANDDEVELOPMENT TAX CREDIT TAX CREDITS AND EXEMPTIONS FOR COMPANIES BUYING NEW FACTORY EQUIPMENT AND A PARTIAL TAX EXCLUSION FOR LONGTERM CAPITAL GAINS ON INVESTMENTS IN SMALL BUSINESSES SPEAKING AT THE HEADQUARTERS OF HUGHES AIRCRAFT CO IN LOS ANGELES MR WILSON SAID THAT THE BILL IS A GRAND SLAM FOR ALL OF US TRYING TO BRING ABOUT THE GREAT CALIFORNIA COMEBACK BUSINESSES HAVE LONG COMPLAINED THAT CALIFORNIA IS BURDENED BY HIGH COSTS HEAVY TAXES AND UNWIELDY REGULATIONS AND HAS BECOME AN UNATTRACTIVE STATE IN WHICH TO DO BUSINESS HIGHTECHNOLOGY COMPANIES LIKE INTEL CORP HAVE DECIDED AGAINST CALIFORNIA FOR NEW FACTORY SITES IN PART BECAUSE OF THE STATE'S TAXES AND REGULATIONS MEANWHILE THE STATE'S LINGERING RECESSION HAS CUT INTO TAX REVENUES AND MADE ITS POLITICIANS MORE SENSITIVE TOWARD THE DEMANDS OF BUSINESSES IN JULY THE STATE GOT AN IMAGE BOOST AMONG BUSINESSES AFTER IT PASSED A SWEEPING PACKAGE OF MEASURES DESIGNED TO FIX ITS COSTLY AND FRAUDRIDDEN WORKERS COMPENSATION SYSTEM AND GOV WILSON HAS AGREED TO SIGN SEVERAL RECENTLY PASSED BILLS SEEKING TO CUT BUSINESS RED TAPE THE NEW TAX BILL ADDRESSES MANY COMPLAINTS OF BUSINESSES PARTICULARLY ACCUSATIONS BY MULTINATIONAL CORPORATIONS THAT THE STATE UNFAIRLY BASES THEIR TAXES ON THEIR WORLDWIDE EARNINGS INSTEAD OF US EARNINGS CALIFORNIA ALTERED ITS UNITARY TAX IN 1986 TO LET COMPANIES CHOOSE INSTEAD TO HAVE THEIR TAXES BASED ON US EARNINGS IF THEY PAID A FEE AND AGREED TO CERTAIN EXTENSIVE DISCLOSURE REQUIREMENTS THE LAW DISQUALIFIED COMPANIES THAT MADE CERTAIN ERRORS IN THEIR TAX ACCOUNTING DESPITE THE 1986 REFORM THE UNITARY TAX REMAINED EXTREMELY UNPOPULAR AMONG MULTINATIONALS WHICH ARGUED THAT THE FEES AND BOOKKEEPING WERE ONEROUS SEVERAL COMPANIES SUCH AS DENMARK'S LEGO GROUP HAVE RECENTLY WARNED THE UNITARY TAX WOULD PLAY A BIG ROLE IN THEIR DECISIONS ABOUT WHETHER TO INVEST IN CALIFORNIA AND BRITAIN HAS THREATENED TO RETALIATE AGAINST THE TAX THE NEW REFORMS IN EFFECT WOULD GIVE MULTINATIONALS THE CHOICE BETWEEN PAYING TAXES CALCULATED USING UNITARY METHODS AND PAYING TAXES BASED ON THEIR EARNINGS IN THE US AS THEY WOULD IN MOST OTHER STATES THE BILL CALLS FOR REMOVAL OF THE FEE THE EXTRA BOOKKEEPING REQUIREMENTS AND THE DISQUALIFICATIONS FOR COMPANIES OPTING OUT OF UNITARY TAXES THE UNITARY TAX WOULD STILL BE OFFERED AS AN OPTION THE BILL'S OTHER MAIN PROVISIONS INCLUDE A PERMANENT RESEARCHANDDEVELOPMENT TAX CREDIT EXPANDED TO INCLUDE A BROADER RANGE OF R&D EXPENDITURES THE CURRENT CREDIT IS SCHEDULED TO EXPIRE IN 1997 A 50 EXCLUSION ON TAXES ON CAPITAL GAINS ACCRUED ON STOCK HELD IN A SMALL BUSINESS FOR AT LEAST FIVE YEARS A REDUCED TAX RATE FOR CERTAIN CLOSELY HELD CORPORATIONS THE REFORMS ARE EXPECTED TO COST THE STATE ABOUT 400 MILLION IN REVENUE THE FIRST YEAR THEY GO INTO EFFECT THE FISCAL YEAR ENDING JULY 1996 BUT THAT CALCULATION DOESN'T TAKE INTO ACCOUNT REVENUE FROM NEW INVESTMENTS THE REFORMS ARE EXPECTED TO GENERATE SAID LOREN KAYE AN UNDERSECRETARY IN CALIFORNIA'S TRADE & COMMERCE AGENCY WE HAVEN'T SEEN TAX REFORMS FOR BUSINESS IN A VERY VERY LONG TIME MR KAYE SAID THE REFORMS WILL PROVIDE A VERY SIGNIFICANT IMPROVEMENT IN THE BUSINESS CLIMATE 9309140131 930914 LEISURE & ARTS ON SPORTS THE YEAR BELONGS TO ELEGANT PETE BY FREDERICK C KLEIN NEW YORK THE MEN'SSINGLES CHAMPIONSHIP MATCH AT THE US OPEN TENNIS TOURNAMENT ON SUNDAY WAS LESS THAN GRIPPING BUT IT WASN'T PETE SAMPRAS'S FAULT IT WAS CEDRIC PIOLINE'S FAULT IT WAS CEDRIC PIOLINE'S FAULT THAT'S RIGHT IT WAS PIOLINE'S FAULT TWICE AS IN DOUBLE FAULT THE DARKHAIRED FRENCHMAN COMMITTED HIS GAME'S LEAST PARDONABLE SIN EIGHT TIMES IN THE STRAIGHTSET CONTEST BUT IT WASN'T SO MUCH THE FREQUENCY OF HIS ERRANT SERVES THAT DID HIM IN IT WAS THEIR TIMING FOUR OF SAMPRAS'S SIX SERVICE BREAKS WERE TOPPED OFF BY PIOLINE DOUBLE FAULTS INCLUDING MATCH POINT ON A DELIVERY THAT TICKED THE NET AND SAILED LONG HE SEEMED A BIT TIGHT SAID SAMPRAS OF HIS FOE AFTER HIS 64 64 63 WIN IN HIS TURN PIOLINE DIDN'T DENY IT BUT WHO COULD BLAME HIM HERE WAS A GUY WHO AT AGE 24 WHICH IS MIDDLEAGED THESE DAYS FOR A BIGTIME TENNIS PLAYER HAD NEVER WON A PROTOUR EVENT MUCH LESS A GRAND SLAMMER IT WAS THAT KIND OF OPEN FROM DAY ONE A RECORD FIVE OF THE 16 SEEDED MEN DIDN'T SURVIVE THE FIRST ROUND AND TWO MORE FELL IN THE SECOND WALLY MASUR A TENNIS JOURNEYMAN OF 30 FROM AUSTRALIA MADE THE SEMIFINALS MAGNUS LARSSON A SWEDE RANKED ONLY 60TH MADE THE QUARTERS WHAT HAPPENED TO JIM COURIER HERETOFORE THE WORLD'S AND TOURNEY'S NO1 PIOLINE RANKED 14TH AND SEEDED 15TH BEAT HIM BORIS BECKER FELL TO LARSSON STEFAN EDBERG THE TWOTIME DEFENDING CHAMP I TOLD YOU ABOUT HIM LAST WEEK THERE ARE IN THIS AGE OF HIGHTECH RACQUETRY 30 OR 40 YOUNG MEN WHO HIT THE BALL HARD AND WELL ENOUGH TO SCARE THEIR MOST AUGUST COLLEAGUES PIOLINE IS ONE OF THEM AND THIS WAS HIS FORTNIGHT TO SHINE HIS SERVES AT TIMES TOPPED 115 MPH AND HIS OTHER STROKES LOOKED SWELL AS WELL HE HAD TOO MUCH GAME FOR ME SUMMARIZED MASUR AFTER PIOLINE SQUELCHED HIM IN FOUR SETS ON SATURDAY HOW COME HE'S NEVER WON PEOPLE WERE ASKING ON SUNDAY THEY FOUND OUT NOT ONLY DID HE DOUBLE FAULT HIMSELF OUT OF CONTENTION BUT SOME OF HIS OTHER SHOTS HAD SPECTATORS DUCKING FOR COVER SO ERRATIC WERE HIS EFFORTS THAT SAMPRAS WHO NORMALLY TENDS NETWARD MOSTLY STOOD BACK AND RALLIED WAITING FOR EGREGIOUS ERRORS PIOLINE MADE 45 OF THEM TO PETE'S 23 AND ALONG WITH PIOLINE'S DOUBLE FAULTS AND SAMPRAS'S RELENTLESS SERVING EXCELLENCE THEY MADE THE DIFFERENCE NONE OF THE ABOVE SHOULD DIMINISH SAMPRAS'S ACHIEVEMENT THE 22YEAROLD CALIFORNIAN SEEDED SECOND KEPT HIS HEAD WHILE THOSE ABOUT HIM WERE LOSING THEIRS AND IN THE PROCESS MADE 1993 HIS AS LONG AS TENNIS RECORDS ARE KEPT ADDED TO HIS TRIUMPH AT WIMBLEDON IN JULY HIS OPEN WIN GAVE HIM TWO OF THE YEAR'S FOUR MAJORS JUST MAKING THE FINALS HERE PUSHED HIM PAST FELLOW AMERICAN COURIER AS THE WORLD'S NO 1 MALE PLAYER ON THE TOUR COMPUTER AS HE NOTED THOUGH TROPHIES ARE MORE IMPORTANT THAN PRINTOUTS SAMPRAS BRINGS TO TENNIS AN ELEGANCE IT'S LONG LACKED FROM AMERICANS HIS STROKES EVEN HIS BULLET SERVES ARE SMOOTH AND WITHOUT QUIRKS HIS ONCOURT BEHAVIOR BUSINESSLIKE OFFCOURT HE'S WHAT USED TO BE CALLED A CREDIT TO HIS SPORT HE SEEMS TO HAVE A SENSE OF WHAT HE CAN CONTROL AND WHAT HE CAN'T SOMETHING THAT STANDS HIM IN GOOD STEAD AT A FEST AT WHICH PLAYERS' COMPLAINTS ABOUT CONDITIONS ANNUALLY ABOUND THESE RANGE FROM THE TRIVIAL THE CROWDED PLAYERS' LOUNGE FOR INSTANCE TO SUBSTANTIVE SQUAWKS ABOUT THE OFTEN HEADLESS SCHEDULING NIGHT MATCHES RESTLESS CROWDS AND WIDE SWINGS IN TEMPERATURE HE'S WON THIS TOURNEY TWICE NOW HIS FIRST VICTORY WAS IN 1990 AND WAS A FINALIST LAST YEAR SAMPRAS'S GROWING ROLL OF TITLES PROMPTED ONE QUESTIONER TO ASK WHETHER HE MIGHT BEGIN INCLUDING HIMSELF IN THE COMPANY OF ROD LAVER AND KEN ROSEWALL THE OLD AUSSIE GREATS HE'S IDOLIZED SINCE BOYHOOD FOR THEIR SKILLS AND MODEST DEMEANOR HE REPLIED IF I GO ON LIKE THIS FOR 10 MORE YEARS I'LL BE IN THEIR COMPANY SIX OR EIGHT MORE SHOULD DO THERE WERE UPSETS IN THE WOMEN'S TOURNAMENT TOO AS WITNESSED BY THE PRESENCE IN THE FINALS OF THE 12THSEEDED HELENA SUKOVA BUT THE NATURE OF THE CURRENT WOMEN'S GAME FORCES ONE TO REEXAMINE THAT TERM TWO PLAYERS CHAMPION STEFFI GRAF AND MONICA SELES STILL RECUPERATING FROM A STAB WOUND INFLICTED BY A DERANGED SPECTATOR AT A TOURNEY IN MAY SO DOMINATE THEIR SISTERS THAT WHAT GOES ON BENEATH THEM HAS LITTLE TO WITH HOW IMPORTANT TOURNAMENTS COME OUT SINCE 1988 THE YEAR OF GRAF'S SWEEP OF THE FOUR MAJORS WIMBLEDON AND THE AUSTRALIAN FRENCH AND US OPENS GRAF OR SELES HAS WON 21 OF THE 24 WITH GRAF THIS YEAR CAPTURING ALL BUT THE AUSTRALIAN CROWN SELES WON BEFORE HER INJURY NO PLAYER EXTANT SEEMS CAPABLE OF CHANGING THAT RUN SOON IT SURELY WASN'T THE 28YEAROLD SUKOVA A VETERAN TENNIS TOURIST SATURDAY'S FINALS ENCOUNTER WAS HER 21ST WITH GRAF THAT COUNTED AND HER 20TH LOSS THE 6FOOT2 SERVEANDVOLLEYER FROM PRAGUE HAD EARNED HER POSITION BY DEFEATING AMONG OTHERS FOURTIME EXCHAMP MARTINA NAVRATILOVA 36 IN THE ROUND OF 16 AND THE NO 2 SEED ARANTXA SANCHEZ VICARIO IN THE SEMIFINALS BUT IT WASN'T THE OLD MARTINA SHE DEFEATED IT WAS THE OLD MARTINA AND FOR ALL HER HUSTLE SANCHEZ VICARIO IS BEATABLE WHEN AN OPPONENT IS SUFFICIENTLY ON GRAFSUKOVA WAS A TYPICALLY BRISK ONESIDED STEFFI EXERCISE LASTING BUT 65 MINUTES THE GERMAN'S PASSING SHOTS EITHER ZIPPED BY HER FOE OUTRIGHT OR FORCED FEEBLE RETURNS OF THE NINE GAMES SUKOVA SERVED GRAF WON FIVE SHE WAS BETTER THERE WAS NOTHING MUCH I COULD DO ABOUT IT THE LOSER LATER ADMITTED GRAF AFTERWARD WAS ASKED MORE QUESTIONS ABOUT THE ABSENT SELES THAN ABOUT THE MATCH THIS HAS BEEN A NOWIN SITUATION FOR GRAF SHE IS KNOCKED FOR CALLOUSNESS WHEN SHE DOESN'T VOLUNTEER TO SYMPATHIZE WITH HER RIVAL'S PLIGHT AND SUSPECTED BY SOME OF INSINCERITY WHEN SHE DOES AS USUAL SHE ANSWERED AS BEST SHE COULD SAYING THAT WOMEN'S TENNIS NEEDS ITS BEST PLAYERS WHOLE AND SO DOES SHE IT HELPS IF YOU HAVE A PLAYER WHO PUSHES YOU SHE NOTED THIS OPEN SURELY PROVED THAT 9309140130 930914 BASSLED GROUP'S MATLACK STAKE WILMINGTON DEL A GROUP LED BY ROBERT BASS SAID IT ACQUIRED 69 OF THE COMMON STOCK OF MATLACK SYSTEMS INC FOR INVESTMENT PURPOSES ALPINE CAPITAL LP AN AFFILIATE OF THE FORT WORTH INVESTOR SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT HOLDS 400300 SHARES 304360 OF WHICH WERE PURCHASED BETWEEN JULY 21 AND FRIDAY AT PERSHARE PRICES RANGING FROM 1189 TO 1369 MATLACK SYSTEMS A WILMINGTONBASED TRANSPORTER OF BULK COMMODITIES HAD NO COMMENT ON THE BASS GROUP'S PURCHASE IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE MATLACK SYSTEMS CLOSED AT 13625 UP 125 CENTS 9309140128 930914 WHO'S NEWS VALUE HEALTH INC VALUE HEALTH INC AVON CONN THIS PROVIDER OF SPECIALTY MANAGEDCARE BENEFIT PROGRAMS AND HEALTHCARE INFORMATION SERVICES NAMED WILLIAM J MCBRIDE PRESIDENT AND CHIEF OPERATING OFFICER MR MCBRIDE 48 YEARS OLD HAS BEEN EXECUTIVE VICE PRESIDENT AND WILL CONTINUE AS CHIEF FINANCIAL OFFICER MR MCBRIDE SUCCEEDS ROBERT E PATRICELLI 53 WHO WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY ALSO SAID STEVEN J SHULMAN WILL BECOME EXECUTIVE VICE PRESIDENT WITH ADDED RESPONSIBILITIES OF STRATEGIC PLANNING AND NEW BUSINESS DEVELOPMENT A NEW POSITION MR SHULMAN 42 HAD BEEN A SENIOR VICE PRESIDENT 9309140127 930914 WHO'S NEWS ARGOSY GROUP LP ARGOSY GROUP LP NEW YORK MARIO A MONELLO 41 YEARS OLD WAS NAMED PRESIDENT OF A NEW UNIT TO BE CALLED ARGOSY SECURITIES GROUP LP ARGOSY GROUP SAID IT PLANS TO FORM THE SUBSIDIARY TO UNDERWRITE AND TRADE JUNK BONDS AND PROVIDE RESEARCH ON THEM TO INSTITUTIONAL CUSTOMERS THE UNIT WILL AUGMENT ARGOSY'S EXISTING INVESTMENT BANKING BUSINESS ARGOSY ALSO NAMED LEON M WAGNER 40 VICE CHAIRMAN OF THE UNIT MR MONELLO PREVIOUSLY WAS A MANAGING DIRECTOR AT AMERICAN EXPRESS CO'S LEHMAN BROTHERS UNIT MANAGING ITS HIGHYIELD OPERATIONS SINCE 1989 MR WAGNER PREVIOUSLY WAS A PARTNER WITH DABNEY/RESNICK & WAGNER A LOS ANGELES FIRM SPECIALIZING IN HIGHYIELD SECURITIES 9309140126 930914 BUSINESS WORLD CALIFORNIA POLITICAL HEIRESS BLOWS AN INHERITANCE BY TIM W FERGUSON KATHLEEN BROWN THE EARLY FAVORITE FOR GOVERNOR OF CALIFORNIA NEXT YEAR HAS BEEN THE VOICE OF VISION SHE'S CAST HERSELF AS THE OPTIMISTIC FACE OF A BIGGER BETTER STATE IN THE MOLD OF HER FATHER PAT AND NOT THE KIND OF PINCHED DOWNSIZER THAT HER BROTHER JERRY OR HER PROSPECTIVE OPPONENT INCUMBENT PETE WILSON IS WIDELY PERCEIVED TO BE BUT LAST WEEK MS BROWN SIDED AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT DOUBTLESS LOOKING AT POLL NUMBERS SHOWING A BUDDING BUT BROAD SHIFT AGAINST NAFTA AND AT THE LIKELIHOOD OF A DEMOCRATIC PRIMARY FIGHT AGAINST AN OPPONENT WITH A POPULISTLEFT POSE SHE DECIDED THAT THE SIDE AGREEMENTS NEGOTIATED BY THE CLINTON ADMINISTRATION WEREN'T ADEQUATE TONIC FOR CALIFORNIA'S ILLS I'VE GOT TO TELL YOU SHE TOLD THE LOS ANGELES TIMES IN KATHLEENESE I FEEL BURNED BY PROMISES FROM THE FEDERAL GOVERNMENT THE STANCE CAME AS A SHOCK TO A NUMBER OF NEW DEMOCRATS IN CALIFORNIA WHO'D HOPED TO RALLY BEHIND HER THE FIRSTTERM STATE TREASURER'S IDENTIFICATION WITH A PUBLICPRIVATE GROWTH AGENDA APPEALED TO THOSE WHO LIKE THE MARKETPLACE BUT THINK IT NEEDS SEEDING AND A SOFTENING AROUND THE INEQUALITY EDGES TO RICHARD STEINBERG A SAN FRANCISCO TRADE LAWYER WHO'D HEARD MS BROWN SEEM TO SUPPORT NAFTA IN A TALK EARLIER THIS YEAR THIS ABOUTFACE WAS DISTURBING HE WAS AN ASSISTANT COUNSEL TO US TRADE REPRESENTATIVE CARLA HILLS SO HIS REACTION MIGHT BE EXPECTED BUT HE'S A DEMOCRAT WHO WAS DISPOSED TO SUPPORT MS BROWN MR STEINBERG WAS A NONPOLITICAL APPOINTEE AT USTR MARTINA JOHNSON WHO DIRECTS THE EXPORTERBACKED CALIFORNIA COUNCIL FOR INTERNATIONAL TRADE IN SAN FRANCISCO WAS LIKEWISE REALLY DISAPPOINTED MS BROWN HAD EXPRESSED MEASURED SUPPORT FOR NAFTA IN PUBLIC AND PRIVATE AT THE COUNCIL SHE SAID MORLEY WINOGRAD HEAD OF THE DEMOCRATIC LEADERSHIP COUNCIL BRANCH IN LOS ANGELES AND A REGIONAL EXECUTIVE AT AT&T SAID MS BROWN'S REPORTED EXPLANATION OF HER SWITCH WAS NOT CONVINCING OR WELLREASONED MR WINOGRAD IS AMONG PARTY MODERATES FROM WHOM THE CANDIDATE HAS RECEIVED PERIODIC INFORMAL ADVICE I THOUGHT SHE LISTENED WELL AND UNDERSTOOD THE DIRECTION CALIFORNIA AND THE NATION NEED TO GO HE SAID THIS IS NOT IN LINE WITH THAT VISION JOHN HUANG VICE CHAIRMAN OF ONE OF THE CHINESEOWNED BANKS THAT HAVE GAINED A SIGNIFICANT FOOTHOLD IN LOS ANGELES SAID HE REMAINED SUPPORTIVE OF MS BROWN PENDING A CHANCE TO MEET WITH HER PERSONALLY TO FIND OUT THE REAL REASON FOR HER NEW POSITION WORKERDISPLACEMENT CONCERNS ARE LEGITIMATE BUT CAN BE RESOLVED HE SAID NAFTA IS CONTROVERSIAL HE ACKNOWLEDGED YET IF ANYTHING IS AN EASY DECISION IT DOESN'T TAKE A PERSON WITH A LOT OF LEADERSHIP TO MAKE THE DECISION MS BROWN HAD MORE THAN 35 MILLION IN HER CAMPAIGN TREASURY AS OF LAST MONTH SO SHE HAS SOME LATITUDE TO IRK BUSINESS BACKERS AND BESIDES SHE HAS RAISED MOST OF HER CASH FROM LAWYERS AND OTHERS INVOLVED IN PURELY DOMESTIC SECURITIES SHE HANDLES CALIFORNIA'S BOND SALES AND IS INVOLVED IN ITS PENSION INVESTMENTS AND FROM HOLLYWOOD WHICH IS NOT THOUGHT TO HAVE AS MUCH RIDING ON NAFTA AS OTHER MAJOR CORPORATE INTERESTS IN THE STATE BUT BUSINESS GENERALLY HAS A BIG STAKE THE FINANCIAL INDUSTRY WHERE CALIFORNIA STILL HAS SOME MAJOR PLAYERS IS THOUGHT TO BE ESPECIALLY EAGER TO EXPORT TO MEXICO TELECOMMUNICATIONS IS ANOTHER RIPE FIELD FOR SELLING GOODS AND SERVICES AS ARE ELECTRONICS ENVIRONMENTAL TECHNOLOGY CONSTRUCTION SPECIALTY PLASTICS AND PRECISION METAL PARTS EVEN UNDER EXISTING TARIFFS THE STATE'S SHIPMENTS TO MEXICO HAVE GROWN BY 20 A YEAR SINCE 1987 LOWERWAGE JOBS GENERALLY ARE CONSIDERED THE ONES IN CALIFORNIA MOST AT RISK TO MEXICAN COMPETITION FOOD PROCESSING HAS ALREADY BEEN HIT ALTHOUGH MEATPREPARATION FOR EXPORT MIGHT WELL REMAIN NORTH OF THE BORDER OF THOSE BASIC INDUSTRIES STILL IN THE US APPAREL IS MOST FREQUENTLY CITED AS VULNERABLE YET GARMENT PRODUCTION ACTUALLY HAS BEEN RETURNING TO THESE SHORES FROM ASIA IN ORDER TO ALLOW NIMBLER RESPONSE TO RETAIL DEMANDS APPAREL MAKERS MAY BE MOVING OUT OF DOWNTOWN LA BUT DEVELOPERS IN CLOSEBY AREAS HAVE MOBILIZED TO RELOCATE THEM NEVERTHELESS UNIONS IN CALIFORNIA AS ELSEWHERE HAVE INSISTED THAT THEIR POLITICAL ALLIES OPPOSE NAFTA THEY WERE FIRING ACROSS MS BROWN'S BOW AND BEING COURTED BY HER PRESUMPTIVE FOE INSURANCE COMMISSIONER JOHN GARAMENDI WHO CALLS COMPANIES HE REGULATES PIGS AT THE TROUGH TOGETHER WITH THE CLAMOROUS ENVIRONMENTAL AND CONSUMERIST LOBBIES ALSO PROTECTIONIST ORGANIZED LABOR REPRESENTS A RESPECTABLE VOTE BASE IN A DEMOCRATIC PRIMARY MOREOVER THE MIDDLECLASS HOSTILITY TO NAFTA ENGENDERED BY ROSS PEROT AND THE AGREEMENT'S VAGUE LINKAGE WITH THE INFLAMMATORY IMMIGRATION ISSUE IN CALIFORNIA FURTHER INVITED MS BROWN'S NEW STAND HER POLICY DIRECTOR IS ROY BEHR WHO FOR YEARS STRIVED TO ASSOCIATE HIS FORMER BOSS LT GOV LEO MCCARTHY WITH CONCERNS OF ORDINARY FOLKS BUT THE GOVERNORSHIP OF ONE OF THE WORLD'S LARGEST ECONOMIES COMES WITH EXTRAORDINARY EXPECTATIONS INCLUDING A CERTAIN WEIGHTINESS IN MATTERS OF INTERNATIONAL COMMERCE MS BROWN'S PROVINCIALISM ON NAFTA HAS RAISED DOUBTS ON THIS SCORE AMONG EVEN THOSE ATTRACTED TO HER WILSON PEOPLE LONG HAVE SUGGESTED SHE COULDN'T PLAY IN THEIR LEAGUE AND BESIDES THE QUESTION OF WHO OR WHAT COULD HAVE CONVINCED HER THAT THE PACT'S DEMISE IS IN THE STATE'S INTERESTS THE APPEARANCE OF FLIPFLOPPING ON SOMETHING LIKE THIS WILL AID HER OPPONENTS SAID FRED MARTIN A BANK OF AMERICA OFFICIAL WHO CHAIRS CALIFORNIANS FOR NAFTA GOV WILSON FOR ALL THE SMALLNESS THAT INTELLECTUALS TEND TO SEE IN HIS IMMIGRATION PRONOUNCEMENTS HAS KEPT TO WORLDCLASS COMMERCIAL POLICIES THROUGHOUT A MEAN RECESSION IN BUSINESS CIRCLES THAT IS LIKELY TO HELP HIM AGAINST A SELFSTYLED MODERATE WHO CAN NEVER ENTIRELY FREE HERSELF OF OLD DEMOCRATIC URGES KATHLEEN BROWN IS PROBABLY AT ROOT A FREE TRADER BUT IF SHE FOUND EXCUSES TO BACK OFF NAFTA WHAT OF HER GRIT IN GENERAL A FAVORED LINE AMONG THE LEARNED LEFT IS THAT NAFTA IS PRIMARILY SYMBOLISM THAT THE INTERNATIONAL DYNAMICS OF COMPETITIVE CAPITALISM ARE IN MOTION REGARDLESS AND THAT RATIFYING THEM ON BILL CLINTON'S WATCH WILL ONLY BRING HIS PARTY BLAME FOR THE LARGELY INEVITABLE RESULT BE IT BLAME OR CREDIT THERE'S A LOT TO BE SAID FOR THAT VIEW BUT SYMBOLS SUCH AS NAFTA CAN HAVE SUBSTANTIAL SECONDARY EFFECT NOT ONLY IN OPENING UP A GATEWAY TO LATIN AMERICAN AND SECURING MODERNITY IN MEXICO BUT IN FLAGGING THE WORLD TO FOLLOW AND THE SYMBOLIC ACT IS OF COURSE EVER IMPORTANT IN POLITICS IT CAN BURNISH A USEFUL IMAGEOR AS PAT BROWN'S DAUGHTER MAY DISCOVER BEGIN TO SHATTER ONE 9309140125 930914 LETTERS TO THE EDITOR DRUGS LAWS VIOLATE PRINCIPLE OF LIBERTY JUDGE THOMAS GRIESA'S DEFENSE OF DRUG PROHIBITION MISSES THE POINT THERE IS NO CASE FOR LEGALIZING DRUGS EDITORIAL PAGE AUG 10 IN RESPONSE TO THE CRITICISM THAT OUR DRUG LAWS HAVE NOT ENDED DRUG USE AND DRUG TRAFFICKING HE CORRECTLY POINTS OUT THAT WE DON'T REPEAL THE LAWS AGAINST MURDER RAPE AND ROBBERY JUST BECAUSE THE LAWS DON'T STOP THOSE CRIMES BUT VIRTUALLY ALL PEOPLE IN ALL SOCIETIES INSTINCTIVELY KNOW THAT MURDER RAPE AND ROBBERY ARE MORALLY WRONG AND WE DON'T FIND TENS OF MILLIONS OF PEOPLE VIOLATING THOSE LAWS WITH PROHIBITION OF ALCOHOL OR COCAINE OR GAMBLING THE PROBLEM IS THAT MANY PEOPLE DON'T BELIEVE THOSE ACTS ARE MORALLY WRONG AND MILLIONS OF PEOPLE BLITHELY IGNORE THE LAWS THAT'S VERY DIFFERENT FROM THE AGEOLD FAILURE TO COMPLETELY ERADICATE MURDER WORSE PROHIBITION HAS DEVASTATING SIDE EFFECTS DRUG LAWS LIKE ALCOHOL PROHIBITION DRIVE UP PRICES CAUSING ADDICTS TO COMMIT CRIMES TO PAY FOR HABITS THAT WOULD BE EASILY AFFORDABLE IF THEY WERE LEGAL DRUG SELLERS AND PURCHASERS WITH NO RECOURSE TO JUDGE GRIESA'S COURT WHEN THEY HAVE BEEN CHEATED TURN TO VIOLENCE TO ENFORCE THEIR CONTRACTS THE COMPARATIVE ADVANTAGE THUS AFFORDED TO VIOLENT BEHAVIOR ATTRACTS PEOPLE WHO EMPLOY VIOLENCE ON A REGULAR BASIS DRUG PROHIBITION IS NOT A MERE FAILURE IT IS A CATASTROPHE THAT HAS GIVEN US CORRUPTION OF LAW ENFORCEMENT OFFICIALS THREATS TO PRIVATE PROPERTY FROM ASSET FORFEITURE LAWS DEVASTATING CONDITIONS IN OUR INNER CITIES AND SOARING MURDER RATES FROM RICHMOND TO LOS ANGELES JUDGE GRIESA'S ARTICLE IS A PRIME EXAMPLE OF REASONING WELL FROM A BAD PREMISE FOR THE QUESTION IS NOT WHETHER DRUGS SHOULD BE LEGALIZED BUT WHETHER THE STATE HAS A RIGHT TO MAKE THEM ILLEGAL IN THE FIRST PLACE THE STATE MAY ENJOIN A CRIME BECAUSE IT IS THE INTENTIONAL ACT OF AN INDIVIDUAL AGAINST THE PROPERTY OR PERSON OF ANOTHER EVERY CITIZEN HAS A STAKE IN MAKING SURE THAT CRIME DOES NOT UNDERMINE THE SYSTEM OF LIBERTY AND PROPERTY NECESSARY FOR SOCIETY TO FUNCTION VICES ON THE OTHER HAND ARE ACTS BY WHICH AN INDIVIDUAL HARMS HIS OWN INTERESTS IN A MISPLACED ATTEMPT TO FIND HAPPINESS TAKING DRUGS IMPLIES NO MALICE TOWARD OTHERS AND IS THEREFORE A VICE NOT A CRIME THE STATE HAS NO BASIS TO REGULATE THE DRUG USER'S PURSUIT OF HAPPINESS IF THE ACT DOES NOT MEET THE CRIMINAL CRITERIA OF INTENTIONALLY HARMING OTHERS AFTER ALL WE ARE THE ONLY NATION ON EARTH TO FIGHT A REVOLUTION FOR THE RIGHT TO PURSUE OUR OWN HAPPINESS JUDGE GRIESA'S CONDEMNATION OF DRUG TRAFFICKING WHEN SEEN IN THIS LIGHT IS THE CONDEMNATION OF AIDING AND ABETTING A VICE IF PEOPLE COULD BE JAILED FOR ASSISTING VICES EVERYONE FROM CASINO OWNERS TO CHOCOLATE MAKERS WOULD BE MODELING VERTICAL STRIPES IN SHORT OUR DRUG LAWS ARE JUST ONE MORE EXAMPLE OF A STATISM THAT IS DIRECTLY ANTITHETICAL TO THE PRINCIPLES OF INDIVIDUAL LIBERTY ON WHICH THE REPUBLIC IS BASED HOW SAD THAT LIFE LIBERTY AND THE PURSUIT OF HAPPINESS HAS GIVEN WAY TO THE BLATHER OF LEGISLATORS WHO TODAY SPEAK AS IF GRIDLOCK AND POLARIZATION WERE BEDROCK PRINCIPLES AND VOTE ACCORDINGLY WE SHOULD HONOR THE DEAD AT BUNKER HILL AND CONCORD BY WRITING ONLY THOSE LAWS THAT CONFORM WITH THE PHILOSOPHY OF NATURAL LAW THE FOUNDING FATHERS ESPOUSED THE JUDGE'S STATEMENT THAT TO COUNTERMAND THE EXISTING LAWS WOULD TELL THE POPULACE THAT OUR GOVERNING AUTHORITIES ARE MORALLY INDIFFERENT TO THIS FORM OF CRIMINALITY OR ARE ACTUALLY APPROVING IS THE UNDERLYING BELIEF THAT PROPELS THE GOVERNMENT'S WAR ON DRUGS AMERICANS ARE BEING SENT TO PRISON ARE HAVING THEIR PROPERTY CONFISCATED AND ARE BEING KILLED BECAUSE THEY HAVE COMMITTED THE HEINOUS CRIME OF OFFENDING THE MORAL SENSIBILITIES OF THE LAW GIVERS THE WAR ON DRUGS IS A MORAL OUTRAGE IT IS BEING WAGED AGAINST PEOPLE WHOSE MAIN SIN IS THAT THEY LACK SELFCONTROL OR HAVE FALLEN VICTIM TO THE CURIOSITY OF YOUTH THE JUDGE NEEDS TO BE REMINDED THAT IT IS THE DOMAIN OF THE CLERGY NOT THE GOVERNMENT'S TO SAVE LOST SOULS THROUGHOUT HISTORY THE PERPETRATORS OF MANKIND'S GREATEST EVILS HAVE BEEN GOVERNMENTS COMMITTED TO USING THE COLLECTIVE APPROACH TO ATTAIN SALVATION AS A PARENT WHO ALMOST LOST A CHILD TO THE VIOLENCE OF THIS SENSELESS AND UNPARDONABLE WAR I AM NOT WILLING TO SACRIFICE THE LIVES OF MY CHILDREN JUST SO POLITICAL PUNDITS AND JUDICIAL MORALIZERS CAN FEEL GOOD ABOUT THEMSELVES WE NEED TO REPLACE THE RHETORIC AND EMOTION THAT HAVE DOMINATED DISCUSSIONS ON DRUG ISSUES AND REPLACE THEM WITH LOGICAL AND FACTUAL BASED ANALYSIS 9309140124 930914 ABREAST OF THE MARKET CYCLICAL SHARES HELP MARKET RALLY CONTINUE BUT WITH LESS STEAM BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A HANDFUL OF ECONOMICALLY SENSITIVE STOCKS KEPT ALIVE THE RALLY OF THE PREVIOUS SESSION THOUGH THE MARKET'S ADVANCE LOST SOME STRENGTH THE DOW JONES INDUSTRIAL AVERAGE ROSE 1258 OR 035 TO 363421 AFTER CLIMBING 3214 ON FRIDAY BUT BROADER INDEXES MANAGED JUST SLIM GAINS AND THE NASDAQ COMPOSITE INDEX SKIDDED 399 OR 054 TO 74032 THE NYSE COMPOSITE INDEX WAS AT 25606 UP 013 ON THE BIG BOARD THERE WERE 1057 ISSUES ADVANCING AND 969 DECLINING NYSE VOLUME TOTALED 2434 MILLION SHARES COMPARED WITH 2665 MILLION SHARES FRIDAY POWERING THE INDUSTRIAL AVERAGE WERE STOCKS INCLUDING DUPONT WHICH JUMPED 1 5/8 TO 49 1/2 AND MINNESOTA MINING & MANUFACTURING WHICH CLIMBED 1 1/8 TO 107 5/8 AMONG OTHER CYCLICALS FORD MOTOR GAINED 1 3/8 TO 55 AND CHRYSLER ROSE 1 1/4 TO 45 1/2 JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC ATTRIBUTED SOME OF THE STRENGTH TO DATA ON PRODUCER PRICES FRIDAY WHICH INDICATED THE THREAT OF INFLATION IS DIMINISHING THAT NEWS SHOULD HELP KEEP INTEREST RATES LOW HE SAID AND EVENTUALLY BUOY THE ECONOMY AND CORPORATE PROFITS AIRLINE TRUCKING AND RAILROAD ISSUES WERE CARRIED ALONG BY THE BUYING IN CYCLICALS THE DOW JONES TRANSPORTATION AVERAGE SURGED 2330 OR 145 TO 163476 UAL PARENT OF UNITED AIRLINES ROSE 3 1/2 TO 146 1/2 AND DELTA AIR LINES GAINED 1 3/8 TO 54 1/4 EVEN THOUGH MANY AIRLINES ANNOUNCED NEW FARE CUTS THE NASDAQ INDEX WAS BATTERED BY HEAVY SELLING IN TECHNOLOGY ISSUES ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL GROUP SAID PROFITTAKING HIT COMPUTER NETWORKING AND SOFTWARE STOCKS HARDEST GROUPS THAT WERE PARTICULARLY STRONG LATE LAST WEEK THE STANDARD & POOR'S 500 STOCK INDEX ADDED 034 OR 007 TO 46206 AND THE DOW JONES EQUITY MARKET INDEX EDGED UP 033 OR 008 TO 43879 DESPITE THE STRENGTH ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS PREDICTED MORE SELLING NEAR TERM I DON'T SEE THE RISK OF ANY MAJOR PULLBACK BUT WE NEED TO TAKE A LITTLE BIT OF THE FROTH OFF WE HAD A GOOD RALLY IN JULY AND AUGUST HE SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES ATTRIBUTED THE RELATIVELY SUBDUED VOLUME COMPARED WITH FRIDAY TO THE POSSIBILITY SOME INVESTORS MAY HAVE BEEN DELAYING TRADES AHEAD OF THE RELEASE TODAY OF DATA ON CONSUMER PRICES AND RETAIL SALES ANALYSTS EXPECT A GAIN OF 01 FOR AUGUST IN THE CONSUMER PRICE INDEX AND A DROP OF 01 IN RETAIL SALES FOR THE MONTH AN AGREEMENT BY VIACOM TO BUY PARAMOUNT COMMUNICATIONS FOR 82 BILLION OR 6914 A SHARE IN CASH AND STOCK ADDED SOME EXCITEMENT PARAMOUNT JUMPED 3 3/8 TO 64 1/2 ON HEAVY VOLUME OF 36 MILLION SHARES THE STOCK JUMPED 4 1/4 ON FRIDAY IN ANTICIPATION OF THE AGREEMENT WHICH WAS REACHED OVER THE WEEKEND VIACOM SHARES FELL 1 7/8 TO 64 1/8 IN AMERICAN STOCK EXCHANGE TRADING MEANWHILE AMONG OTHER ENTERTAINMENT INDUSTRY GIANTS WALT DISNEY CO ROSE 3/4 TO 40 3/4 AND TIME WARNER CLIMBED 1/2 TO 42 3/4 CONSECO JUMPED 3 TO 68 1/8 AFTER THE CARMEL IND COMPANY AGREED TO INCREASE ITS INTEREST IN BANKERS LIFE HOLDING AND TO SELL A MAJORITY STAKE IN ITS WESTERN NATIONAL LIFE INSURANCE UNIT CONSECO WILL PAY 2876 MILLION TO ICH CORP LOUISVILLE KY FOR A 244 STAKE IN BANKERS LIFE CONSECO WILL SELL THE WESTERN NATIONAL SHARES IN AN INITIAL PUBLIC OFFERING SHARES OF BANKERS LIFE BASED IN CHICAGO EASED 3/8 TO 27 1/2 ICH FELL 3/8 TO 6 1/8 COMPAQ COMPUTER SLUMPED 4 1/8 TO 53 1/4 LATE IN THE DAY AFTER THE HOUSTON COMPANY PREDICTED LITTLE GROWTH IN NORTH AMERICAN PERSONAL COMPUTER SHIPMENTS IN THE SECOND HALF AFTER A 40 JUMP IN SHIPMENTS IN THE FIRST SIX MONTHS OF THE YEAR IT SAID SHIPMENTS IN THE 1992 SECOND HALF WERE PARTICULARLY STRONG BECAUSE OF INDUSTRYWIDE PRICE CUTTING BLOCKBUSTER ENTERTAINMENT FELL 1 TO 27 5/8 THE FORT LAUDERDALE FLA COMPANY AGREED IN PRINCIPLE TO PURCHASE 134 MILLION NEWLY ISSUED SHARES OF SPELLING ENTERTAINMENT FOR ABOUT 100 MILLION SPELLING ALSO OF FORT LAUDERDALE AGREED TO MERGE WITH REPUBLIC PICTURES SPELLING ROSE 1/8 TO 8 IN NASDAQ TRADING REPUBLIC BASED IN LOS ANGELES EASED 1/2 TO 12 1/2 MELLON BANK SKIDDED 3 3/4 TO 56 1/4 AFTER THE COMPANY SAID IT SUED PRIMERICA AND ITS SMITH BARNEY UNIT AS WELL AS AMERICAN EXPRESS AND ITS LEHMAN BROTHERS UNIT MELLON BASED IN PITTSBURGH ALLEGES THAT SEVERAL MOVES BY THE FOUR COMPANIES IN THE MUTUAL FUND ARENA VIOLATE PARTS OF AN AGREEMENT UNDER WHICH MELLON BOUGHT ITS BOSTON CO UNIT FROM LEHMAN PRIMERICA ROSE 5/8 TO 45 5/8 AMERICAN EXPRESS INCHED UP 1/8 TO 34 9309140123 930914 BUSINESS BRIEF BISYS GROUP INC ACQUISITION OF WINSBURY COS IS SET FOR ABOUT 60 MILLION BISYS GROUP INC SAID THAT IT HAS AGREED TO PURCHASE WINSBURY COS A COLUMBUS OHIO MUTUAL FUND SERVICES COMPANY FOR ABOUT 60 MILLION IN CASH BISYS A FINANCIAL INFORMATION AND SERVICES COMPANY BASED IN LITTLE FALLS NJ SAID WINSBURY WOULD HAVE MORE THAN 30 MILLION IN REVENUE IN 1993 BISYS SAID THE ACQUISITION WHICH WILL BE FUNDED BY CASH RESERVES AND A 40 MILLION BANK CREDIT FACILITY WILL BE NONDILUTIVE TO ITS CURRENT FISCAL 1994 EARNINGS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BISYS SHARES CLOSED UNCHANGED AT 22 9309140122 930914 VIACOM'S PROPOSAL TO BUY PARAMOUNT GOT HELPING HAND HEAVY PURCHASES BY CHAIRMAN DROVE UP STOCK LETTING CABLE FIRM PAY PREMIUM BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL HEAVY BUYING OF THINLY TRADED VIACOM INC STOCK BY ITS CHAIRMAN SUMNER REDSTONE HELPED BOOST PRICES OF VIACOM SHARES IN THE WEEKS BEFORE THE CABLE TV COMPANY STRUCK A DEAL VALUED AT 79 BILLION TO ACQUIRE PARAMOUNT COMMUNICATIONS INC THE SOARING PRICE OF VIACOM SHARES WHICH ROSE 26 IN JULY AND AUGUST HELPED VIACOM PAY A PREMIUM FOR PARAMOUNT SHARES ACCORDING TO WALL STREET ANALYSTS VIACOM WILL FINANCE THE BULK OF THE PARAMOUNT ACQUISITION BY GIVING PARAMOUNT HOLDERS VIACOM CLASS B SHARES MR REDSTONE'S PURCHASES DROVE UP THE PRICE OF THE STOCK WHICH MADE IT A VIABLE ACQUISITION CURRENCY SAID CHRISTOPHER DIXON A MEDIA ANALYST AT PAINEWEBBER INC MR REDSTONE'S PURCHASES TRIGGERED QUESTIONS ABOUT WHETHER HE HAD AN UNFAIR ADVANTAGE OVER SHAREHOLDERS WHO SOLD VIACOM STOCK BECAUSE HE WAS AWARE OF THE ONAGAINOFFAGAIN TALKS THAT HAD BEGUN WITH PARAMOUNT CHAIRMAN MARTIN DAVIS IN APRIL A LAWYER FOR VIACOM DENIED ANY IMPROPRIETY BECAUSE MR REDSTONE OWNS 76 OF VIACOM'S 1207 MILLION SHARES OUTSTANDING HIS BUYING HAD A DISPROPORTIONATE IMPACT ON THE PRICE OF THE REMAINING 286 MILLION SHARES THAT TRADE PUBLICLY BETWEEN JULY 5 AND AUG 20 HE ACCOUNTED FOR ABOUT 15 OF THE TOTAL TRADING VOLUME OF VIACOM CLASS B SHARES THE VIACOM OFFER FOR PARAMOUNT IS AN EXTREME EXAMPLE OF HOW MANY COMPANIES' SURGING STOCK PRICES ARE HELPING THOSE COMPANIES FINANCE ACQUISITIONS FUELING THE FIRST MERGER BOOM SINCE THE LATE 1980S ALTHOUGH VIACOM'S STOCK HAS DOUBLED IN THE PAST YEAR IT REMAINS VOLATILE ANY DOWNTURN IN ITS PRICE WOULD REDUCE THE VALUE PARAMOUNT HOLDERS ARE TO RECEIVE FOR THEIR SHARES IN THIS MERGER INDEED VIACOM CLASS B SHARES FELL 2625 TO 5675 YESTERDAY IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE TOGETHER WITH A 1875ASHARE DROP IN VIACOM A SHARES WHICH DECLINED TO 64125 THE DOWNTURN REDUCED THE INDICATED VALUE OF THE VIACOM OFFER FOR PARAMOUNT TO 6659 A SHARE OR 79 BILLION FROM 6914 OR 82 BILLION WHEN THE DEAL WAS ANNOUNCED SUNDAY ANY SERIOUS DECLINE IN VIACOM'S STOCK PRICE COULD HINDER VIACOM'S ABILITY TO COMPLETE THE ACQUISITION PEOPLE CLOSE TO A GROUP LED BY BARRY DILLER CHAIRMAN OF QVC NETWORKS INC WHO IS KNOWN TO BE KEENLY INTERESTED IN PARAMOUNT REFERRED TO VIACOM STOCK OVER THE WEEKEND AS MR REDSTONE'S INVASION CURRENCY THE SAME PEOPLE SUGGESTED THAT A DILLERLED BID WHICH COULD BE LAUNCHED WITH THE BACKING OF JOHN MALONE CHAIRMAN OF LIBERTY MEDIA INC AND CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS INC MIGHT INCLUDE MORE CASH THE POSSIBILITY OF SUCH A BID BY MR DILLER OR SOME OTHER SUITOR SENT PARAMOUNT STOCK SURGING ON THE NEW YORK STOCK EXCHANGE 3375 A SHARE OR 55 TO 6450HIGHER THAN IT WOULD HAVE TRADED IF THE VIACOMPARAMOUNT DEAL WERE CERTAIN TO BE COMPLETED BUT VOLUME WAS A MODERATE 36 MILLION SHARES FEW TAKEOVER TRADERS BOUGHT PARAMOUNT STOCK BECAUSE THE DISCOUNT TO THE OFFER'S CURRENT VALUE WASN'T GREAT ENOUGH TO ALLOW THEM TO ESTABLISH OFFSETTING SHORT POSITIONS IN VIACOM STOCK AS A HEDGE AGAINST VIACOM'S DECLINE BECAUSE MR REDSTONE'S PURCHASES BOOSTED VIACOM'S STOCK PRICE AT A TIME WHEN THE EXECUTIVE WAS AWARE OF THE MERGER TALKS SOME PEOPLE QUESTIONED THEIR PROPRIETY THE TALKS GREW SERIOUS ENOUGH THAT MR REDSTONE ABSTAINED FROM BUYING BETWEEN JUNE 14 AND JULY 2 HE RESUMED BUYING HEAVILY IN JULY AND AUGUST WHEN THE TALKS BROKE OFF AGAIN ON AUG 20 HE HALTED HIS BUYING ONCE MORE WHEN THE TALKS ENTERED THE HOME STRETCH IN ALL MR REDSTONE BOUGHT 413600 CLASS B SHARES BETWEEN JULY 5 AND AUG 20 OR 15 OF THE TOTAL TRADING VOLUME OF 27 MILLION B SHARES DURING THE SAME PERIOD SEVERAL TIMES HIS NORMAL VOLUME BARRY KAPLAN AN ANALYST AT GOLDMAN SACHS & CO SAID MR REDSTONE'S BUYING MAY HAVE BEEN A FACTOR IN THE STOCK PRICE GAIN MICHAEL BRADLEY A PROFESSOR OF FINANCE AND LAW AT THE UNIVERSITY OF MICHIGAN SAID THAT CORPORATE EXECUTIVES GENERALLY HAVE A DUTY EITHER TO DISCLOSE MATERIAL INFORMATION SUCH AS MERGER TALKS OR TO ABSTAIN FROM TRADING BUT STEPHEN VOLK A SENIOR PARTNER AT SHEARMAN & STERLING THE OUTSIDE LEGAL COUNSEL TO VIACOM SAID THAT MR REDSTONE'S STOCK ACQUISITIONS WERE ENTIRELY LAWFUL BECAUSE THEY WERE MADE PURSUANT TO A PUBLICLY ANNOUNCED OPENMARKET PROGRAM OF STOCK PURCHASES BY MR REDSTONE AND HIS CLOSELY HELD NATIONAL AMUSEMENTS INC MOVIETHEATER CHAIN MR VOLK ADDED THAT THE PURCHASES WERE ALL DULY DISCLOSED AND WEREN'T MADE WHILE THE TALKS WITH PARAMOUNT WERE TAKING PLACE ONE PERSON CLOSE TO VIACOM CONTENDED THAT INVESTORS' AWARENESS OF THE STOCK PURCHASE PROGRAM AS WELL AS MONTHLY DISCLOSURE OF MR REDSTONE'S ACTUAL PURCHASES MINIMIZED THE IMPACT ON VIACOM'S STOCK PRICE THE SAME PERSON ADDED THAT THE HEAVIER BUYING IN JULY AND AUGUST MAY HAVE RESULTED FROM MR REDSTONE'S ABSTENTION FROM BUYING DURING THE LAST THREE WEEKS OF JUNE MR DIXON ALSO ATTRIBUTED VIACOM'S JULYAUGUST GAIN TO PROSPECTS FOR OVERSEAS GROWTH OF ITS MTV MUSIC CHANNEL GREATER RECOGNITION OF THE VALUE OF MTV AND OTHER CHANNELS LIKE NICKELODEON AND SPECULATION THAT VIACOM MIGHT BE CAUGHT UP IN MULTIMEDIA MERGER MANIA POSSIBLY BEING ACQUIRED BY A REGIONAL BELL OPERATING COMPANY THE IMPACT OF THE PRICE RUNUP ON VIACOM'S ABILITY TO AFFORD PARAMOUNT WAS SUBSTANTIAL VIACOM PLANS TO ISSUE 115 MILLION NEW CLASS A VOTING SHARES AND 1067 MILLION NEW CLASS B NONVOTING SHARES IN THE MERGER TO ACQUIRE PARAMOUNT THOSE TOTALS DWARF THE NUMBER OF SHARES THAT ALREADY TRADE PUBLICLY MR REDSTONE OWNS 85 OF THE 534 MILLION A SHARES AND 69 OF THE 673 MILLION B SHARES AT THE VIACOM STOCK PRICES THAT PREVAILED ON JULY 2 VIACOM'S OFFER WOULD ONLY BE WORTH 5683 PER PARAMOUNT SHARE OR 67 BILLION THE FEAR IS THAT THE STOCK HAS BEEN GOING UP ON REDSTONE'S BUYING AND YOU'RE CREATING A TREMENDOUS AMOUNT OF NEW STOCK SAID ONE TAKEOVER STOCK TRADER AND UNLIKE SOME DEALS THE TERMS DON'T GIVE PARAMOUNT HOLDERS ANY PROTECTION AGAINST A VIACOM PRICE DROP BEYOND THE DEAL'S CASH COMPONENT OF 910 PER PARAMOUNT SHARE IF THE DEAL GOES THROUGH VIACOM STOCK WILL TRADE BASED ON THE VALUE OF THE TWO COMPANIES' COMBINED BUSINESSES AND THE LARGER ASSET BASE COULD CUSHION THE VOLATILITY OF VIACOM'S STOCK PRICE MR DIXON SAYS THAT THE NEW COMPANY'S CASH FLOW SHOULD GROW SOMEWHERE BETWEEN PARAMOUNT'S CURRENT 10 GROWTH RATE AND VIACOM'S 15 WARREN GETLER CONTRIBUTED TO THIS ARTICLE 9309140120 930914 TECHNOLOGY BRIEF AUTODESK INC NEW EXTENSION OF SOFTWARE LINKS AUTOCAD DATABASES AUTODESK INC AS PART OF A STRATEGY TO PUSH BEYOND ITS TRADITIONAL TECHNICAL MARKETS SAID IT WILL BEGIN SELLING A NEW PROGRAM THAT ALLOWS COMPANIES TO USE ITS DESIGN SOFTWARE TO PERFORM MANAGEMENT TASKS THE SAUSALITO CALIF MAKER OF DRAFTING AND DESIGN SOFTWARE FOR ENGINEERS AND ARCHITECTS SAID IT WILL BEGIN SELLING A PROGRAM CALLED AUTOCAD DATA EXTENSION THAT WILL AUGMENT ITS FLAGSHIP AUTOCAD PROGRAM THE 595 PROGRAM IS DESIGNED TO PROVIDE LINKS BETWEEN DRAWINGS CREATED BY AUTOCAD AND DATABASES SUCH AS THOSE FROM ORACLE CORP OR BORLAND INTERNATIONAL INC PRODUCTS 9309140119 930914 CONSECO AGREES TO PAY 2876 MILLION FOR ICH'S 24 STAKE IN BANKERS LIFE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CONSECO INC AGREED TO PAY 2876 MILLION FOR ICH CORP'S REMAINING 24 STAKE IN BANKERS LIFE HOLDING CORP BOOSTING CONSECO'S OWNERSHIP IN THE CHICAGO HEALTHINSURANCE CONCERN TO 55 UNDER AN EARLIER AGREEMENT THE RAPIDLY GROWING CARMEL IND INSURANCE HOLDING CONCERN PAID AN INDICATED 2160 APIECE FOR THE 133 MILLION SHARES HELD BY ICH SUBSTANTIALLY BELOW THE CURRENT MARKET VALUE OF THE SHARES BUT ICH WILL NEVERTHELESS RECORD A PRETAX GAIN OF 190 MILLION FROM THE SALE REFLECTING THE EXTENT TO WHICH BANKERS LIFE'S FORTUNES HAVE IMPROVED IN RECENT MONTHS ICH LOUISVILLE KY WAS ONCE THE SOLE OWNER OF BANKERS LIFE BUT GROWTH IN THE UNIT WAS CONSTRAINED BY THE PARENT'S FINANCIAL DIFFICULTIES UNTIL ICH LATE LAST YEAR SOLD THE BULK OF BANKERS LIFE TO CONSECO AND A GROUP OF OTHER INSTITUTIONAL INVESTORS CONSECO AND THE OTHERS PROFITABLY TOOK BANKERS LIFE PUBLIC THIS YEAR SEPARATELY CONSECO DISCLOSED PLANS TO SELL TO THE PUBLIC A STAKE OF AS MUCH AS 60 IN WESTERN NATIONAL LIFE INSURANCE CO A LIFEINSURANCE UNIT WITH ASSETS OF 83 BILLION SUCH AN OFFERING WHICH CONSECO CALLED ANOTHER EXAMPLE OF ITS STRATEGY FOR BUILDING VALUE IN ITS ACQUIRED COMPANIES WOULD BE IN LINE WITH A RECENT TREND IN WHICH INSURANCE COMPANIES ARE INCREASINGLY OPTING TO TAKE SUBSIDIARIES PARTICULARLY LIFEINSURANCE UNITS PUBLIC AS A RESULT OF FAVORABLE INDUSTRY TRENDS CONSECO SHARES ROSE 3 TO 68125 IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE WHILE BANKERS LIFE SHARES SLIPPED 375 CENTS FROM A 52WEEK HIGH OF 27875 TO 2750 STILL MARKEDLY ABOVE THE 22 A SHARE AT WHICH THE COMPANY WENT PUBLIC IN LATE MARCH SHARES OF ICH FELL 375 CENTS TO 6125 IN TRADING ON THE AMERICAN STOCK EXCHANGE THE OPPORTUNITY TO INCREASE OUR STAKE CONSECO SAID CAME TO US UNEXPECTEDLY BUT WE SEIZED ON IT BECAUSE OF OUR CONTINUED BELIEF IN THE LONGTERM GROWTH PROSPECTS OF THE COMPANY WE ARE MORE CONVINCED THAN EVER THAT UNDER ANY REALISTIC AFFORDABLE HEALTHCARE REFORM SCENARIO THERE WILL BE MORE OPPORTUNITIES FOR SUPPLEMENTAL INSURANCE PRODUCTS SUCH AS THOSE OFFERED BY BANKERS ICH OFFICIALS APPROACHED CONSECO ABOUT SELLING THE FINAL STAKE A CONSECO OFFICIAL SAID ICH OFFICIALS COULDN'T BE REACHED BUT SAID IN A RELEASE THAT THE BANKERS LIFE SALE HAD BEEN STRUCTURED TO RETAIN A SIGNIFICANT INTEREST IN THE UPSIDE WHILE SIMULTANEOUSLY DELEVERAGING AND SAID THAT IN THE TRANSACTION THAT STRATEGY'S SUCCESS HAS BEEN DEMONSTRATED AGAIN BANKERS LIFE IS THE HOLDING COMPANY FOR BANKERS LIFE & CASUALTY CO A BIG PROVIDER OF MEDICARE SUPPLEMENT LONGTERM CARE AND OTHER INDIVIDUAL HEALTH LIFE ANNUITY AND GROUP INSURANCE PRODUCTS THE LEVERAGED TRANSACTION THROUGH WHICH CONSECO BOUGHT BANKERS LIFE FROM ICH LAST YEAR WAS A COMPLEX ONE CONSECO CAPITAL PARTNERS LP A SINCELIQUIDATED PARTNERSHIP OF INSTITUTIONAL INVESTORS IN WHICH CONSECO SERVED AS GENERAL PARTNER WAS THE ACTUAL ENTITY WHICH PLUNKED DOWN 600 MILLION BUT ICH HELPED FUND THE DEAL AND IT WAS ALSO ONE OF THE LIMITED PARTNERS IN CONSECO CAPITAL PARTNERS AS A RESULT IT WOUND UP WITH AN ABOUT 40 STAKE IN BANKERS LIFE FOLLOWING THE SALE MONTHS LATER BANKERS LIFE WENT PUBLIC THROUGH AN OFFERING OF 1955 MILLION NEW SHARES A PROFITABLE SALE THAT DILUTED THE PROPORTIONATE STAKES OF THE NONSELLING OWNERS ASSUMING CONSECO'S PLANS TO BUY ICH'S REMAINING BANKERS LIFE STAKE GET THE REQUISITE REGULATORY CLEARANCE THE DEAL COULD CLOSE BY THE END OF THIS MONTH OR SHORTLY THEREAFTER CONSECO SAID CONSECO ALSO SAID IT NAMED 62YEAROLD MICHAEL J POULOS FORMERLY VICE CHAIRMAN OF AMERICAN GENERAL CORP TO SERVE AS PRESIDENT AND CHIEF EXECUTIVE OF WESTERN NATIONAL HE WILL HOLD THE TITLE OF CHAIRMAN AS WELL ONCE THE UNIT GOES PUBLIC THE OFFERING OF A 51 TO 60 STAKE IS EXPECTED TO TAKE PLACE IN THE FOURTH QUARTER OF THIS YEAR CONSECO SAID 9309140118 930914 MARKETING SNEAKER MAKERS HEARING CLOMPCLOMP OF COMPETITION LAUNCH RUGGED' LINES BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CONVERSE INC CALLS THEM ALPHA KIDS THEY ARE A FOCUS GROUP OF 13YEAROLD TO 24YEAROLD TRENDSETTING CONSUMERS WHO HAVE PROVED PRESCIENT ON FOOTWEAR FASHION THEIR FAVORITE WORDS THESE DAYS BLACK BROWN FOREST GREEN AND STURDY SAYS EMILIE KAULBACH WHO MANAGES ATHLETIC AND LEISURE PRODUCTS FOR THE NORTH READING MASS COMPANY AND THAT SHE ADDS SPELLS RUGGED OUTDOOR LOUD AND CLEAR AUGMENTING ITS SNEAKER LINE CONVERSE A UNIT OF INTERCO INC RECENTLY BROUGHT OUT LUG BOOT A FLANNELLINED CANVAS HIGHTOP WITH A STUDDED HIKING SOLE NIKE INC HAS AIR RHYOLITE A BLACK AND GREEN HIKING BOOT AND FROM REEBOK INTERNATIONAL LTD COMES THE PUMP MASSIF A WATERPROOF LEATHER MOUNTAIN TREKKER STUNG IN THE MARKETPLACE BY THE GROWING POPULARITY OF OUTDOOR SHOES AND BOOTS THE COMPANIES THAT BUILT THEIR EMPIRES ON THE 1980S' SNEAKER BOOM ARE SHIFTING GEARS HAVING DECIDED THAT THEY CAN'T BEAT SUCH FASTGROWING COMPETITORS AS TIMBERLAND INC WITH ATHLETIC SHOES THE SNEAKER CROWD IS DEVOTING MORE TIME AND RESOURCES TO THEIR OWN OUTDOOR LINES AND MARKETING CAMPAIGNS TO GO WITH THEM A LOT OF THESE KIDS WHO MAY HAVE BOUGHT THREE OR FOUR PAIRS OF SNEAKERS IN THE PAST MAY NOW BUY ONE OR TWO PAIRS OF SNEAKERS AND AUGMENT THEIR PURCHASE WITH ONE OR TWO PAIRS OF RUGGED OUTDOOR GEAR SAID MARK GOLDSTON PRESIDENT AND CHIEF OPERATING OFFICER AT LA GEAR INC WHICH IS EMULATING THE LOOK OF THE GREAT OUTDOORS WITH RUGGED SHOE LINES LIKE STREET HIKER AND KOMBAT GEAR NOT TO BE OUTDONE MARKET LEADER TIMBERLAND IS READYING AN AUTUMN PUBLICITY BLITZ THE MARKETING WARS PROMISE TO PUSH OUTDOORSTYLE SALES TO NEW HEIGHTS THIS ONCE NICHE MARKET IS GOING MAINSTREAM IN A BIG WAY DECLARES JOAN ALVAREZ PUBLISHER OF OUTDOOR RETAILER IN PART MS ALVAREZ'S ENTHUSIASM STEMS FROM LAST MONTH'S OUTDOOR RETAILER EXPO WEST SHOW IN RENO WHERE ATTENDANCE JUMPED TO 16200 FROM 10650 THE PREVIOUS YEAR SPURRED BY THE RISING INTEREST IN CAMPING AND HIKING AS AFFORDABLE VACATIONS AND STOKED BY THE POPULARITY OF TELEVISION SHOWS LIKE NORTHERN EXPOSURE OUTDOOR GEAR FROM HIKING BOOTS TO FANNY PACKS STARTED CATCHING FIRE ABOUT TWO YEARS AGO THEY'RE COOL COMFORTABLE AND GOOD FOR CASUAL DATES SAYS JOHN ZANEWSKY 15 ABOUT A PAIR OF WATERPROOF TIMBERLAND SUEDES HE IS WEARING ON A TRAIN RIDE THROUGH THE MASSACHUSETTS COUNTRYSIDE HIS DATE CINDI TAYLOR ALSO 15 DOTES ON HER COLORFUL VASQUE TERRAIN HIKERS ALL MY FRIENDS HAVE HIKING BOOTS SHE SAYS IF I WERE TO START WEARING TENNIS SHOES OR OXFORDS OR SOMETHING I'D FEEL WEIRD RIGHT NOW SUCH SENTIMENT IS YIELDING A SALES BONANZA A RECENT SURVEY BY SPORTS STYLE A TRADE PUBLICATION SHOWED THAT FOOTWEAR SALES BY THE TOP 10 RUGGEDOUTDOOR FIRMS CLIMBED 30 TO A COMBINED TOTAL OF 6522 MILLION IN 1992 FROM 5027 MILLION THE PRIOR YEAR MANY COMPANIES ARE PROJECTING CONTINUED GROWTH TIMBERLAND THE PREMIER PLAYER EXPECTS SALES TO GROW TO MORE THAN 400 MILLION THIS YEAR UP 37 FROM LAST YEAR'S 291 MILLION TIMBERLAND RAN INTO PROBLEMS IN 1989 BY TRYING TO INTRODUCE TOO MANY NEW MODELS BUT STREAMLINED ITS PRODUCT LINE AND HAS BECOME A WALL STREET FAVORITE WITH A 900 STOCK GAIN IN THE PAST TWO YEARS FAVORED BY MANY IN THE INNER CITY WHERE THEY ARE OFTEN CALLED TIBS TIMBERLAND'S SHOES ARE ALSO GAINING WHITECOLLAR POPULARITY SAYS LEE ALLEN A BOSTON MONEYMANAGEMENT CONSULTANT WHO RECOMMENDS THE STOCK GIVEN ITS BACKWOODS ROOTS TIMBERLAND SEES ITS NEWFOUND TRENDINESS AS SOMEWHAT IRONIC BY THE TIME WE ATTACK A FASHION TREND IT'S USUALLY IN A MUSEUM JOKES JEFFREY SWARTZ CHIEF OPERATING OFFICER LESS AMUSING IS THE ARRIVAL OF HEAVYWEIGHT COMPETITORS INTO THE MARKET CASEY SHEAHAN A MARKETING MANAGER FOR NIKE BASED IN BEAVERTON ORE SAYS THE OUTDOOR MARKET IS THE FASTESTGROWING PART OF OUR BUSINESS WITH FUTURE GROWTH EXPECTED AT 30 TO 50 A YEAR REEBOK GETTING A LATE START IN THE RACE WAS 15TH IN OUTDOORS SALES AT 10 MILLION IN 1992 ACCORDING TO SPORTS STYLE BUT JOHN GILLIS SPOKESMAN FOR THE CANTON MASS CONCERN PREDICTS REEBOK WILL BE NO 2 OR NO 3 BY THE END OF 1994 THAT INDICATES REEBOK IS EXPECTING SALES OF ITS RUGGED OUTDOOR WEAR TO INCREASE BY 15 TIMES ITS CURRENT LEVEL IN THE NEXT 16 MONTHS SOME OBSERVERS ARE SURPRISED BY THE STAMINA OF RUGGEDLOOKING FOOT FASHION THE TREND IS NOW ENTERING ITS THIRD YEAR WHILE THE AVERAGE LIFE OF A FAD IN SNEAKERS IS ABOUT TWO YEARS EVEN IF THEY ARE WARMER AND MORE WATERRESISTANT HIKING BOOTS ALSO STRIKE SOME CONSUMERS AS TOO HEAVY AND UNCOMFORTABLE FOR CASUAL WEAR IF MY BOSS SAID TO ME TAKE THE DAY OFF' I'D SLIP INTO A PAIR OF ULTRALIGHT TENNIS SHOES MAKE SURE I'M NOT WEARING SOCKS AND PUTT AROUND TOWN IN A POLO SHIRT AND CHECKERED SHORTS SAYS GILBERT LA RUSSO A 45YEAROLD BOSTON ATTORNEY WHAT MY FATHER DOESN'T KNOW IS THAT ABOUT 40 PEOPLE WILL BE ACROSS THE STREET LAUGHING AT HIM ADDS STACEY MR LA RUSSO'S 12YEAROLD SON HELPING SUSTAIN THE TREND IS A BOOST FROM HIGH FASHION AND THE ADDITION OF A HOST OF NEW STYLES AND TWISTS DIANE KEATON SPORTED GEORGIA LOGGERS BOOTS IN VOGUE RECENTLY AND MODEL CHRISTY TURLINGTON APPEARS IN NEW LA GEAR BOOTS IN OTHER FASHION MAGAZINES I THINK WOMEN WANT TO PORTRAY THEMSELVES AS DOING SOMETHING ELSE OTHER THAN JUST THEIR NAILS SAYS MS ALVAREZ OF OUTDOOR RETAILER TUNED TO FEMALE INTEREST LA GEAR BOUGHT A 12PAGE INSERT IN VOGUE'S SEPTEMBER AND OCTOBER ISSUES THE COMPANY DEFINES ITS TARGET MARKET AS THE HIGHLY DISCRIMINATING CONSUMERS 13 TO 22 YEARS OLD A GROUP THAT IT RECKONS IS ABOUT 60 FEMALE FOR MANY SNEAKER MANUFACTURERS BOOTS ARE A NEW VENTURE SINCE MOST ATHLETICSHOE FACTORIES DON'T MAKE LEATHER BOOTS THE COMPANIES HAVE HAD TO DEVELOP NEW MANUFACTURING SOURCES A TEMPORARY SETBACK FOR SOME BUT THE SNEAKER FOLKS HAVE SOME OTHER TRICKS REEBOK FOR EXAMPLE IS ABOUT TO INTRODUCE TELOS A HIKING BOOT WHOSE MARKETING PITCH WILL BE THAT 60 TO 70 OF THE SHOE IS MADE OF RECYCLED MATERIALS PART OF THE SOLE IS MADE OF OLD TIRES FROM WASTE DUMPS AND PART OF THE UPPER SHOE COMES FROM RECYCLED PLASTIC BOTTLES NAMED AFTER A MOUNTAIN RANGE IN SOUTH AMERICA TELOS WILL RETAIL FOR 85 ANOTHER REEBOK HIKING BOOT NAMED ZEN BOASTS A SELFCLEANING OUTSOLE WITH ADDED TRACTION EARLY NEXT YEAR LA GEAR PLANS TO INTRODUCE A LINE OF SAWTOOTHEDSOLED SHOES PATTERNED AFTER ROCKCLIMBING FOOTWEAR BUT NOT MEANT TO BE USED AS SUCH ALTHOUGH TRADITIONAL ROCKCLIMBING SHOES COST SEVERAL HUNDRED DOLLARS LA GEAR'S IMITATIVE LINE WILL BE PRICED AT 75 THE ONLY ROCK CLIMBING MANY WEARERS WILL BE DOING IS STEPPING ON A PEBBLE ON MADISON AVENUE MR GOLDSTON ACKNOWLEDGES TIMBERLAND'S WEAKNESS IS THAT IT ISN'T THAT WELLKNOWN OUTSIDE THE NORTHEAST BUT THE COMPANY HOPES ITS PLANNED FALL AD CAMPAIGN WILL REMEDY THAT THE ADS WHICH WILL APPEAR IN 32 CITIES FEATURE FASHION MODELS WHO EXPRESS IGNORANCE OF THE COMPANY SCENES OF MUD AND HEAVY RAINFALL AND THE BLUES TUNES OF MUDDY WATERS 9309140117 930914 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 308 60 TO 119 DAYS 315 120 TO 149 DAYS 316 150 TO 239 DAYS 322 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 314 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 252 ONE MONTH 252 TWO MONTHS 260 THREE MONTHS 269 SIX MONTHS 282 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 305 ONE MONTH 305 THREE MONTHS 315 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 304 90 DAYS 313 120 DAYS 312 150 DAYS 312 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 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 659 60 DAYS 668 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 658 60 DAYS 668 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 490 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 9309140116 930914 INTERNATIONAL HONG KONG'S TRADE WITH US HONG KONG HONG KONG'S JULY TRADE SURPLUS WITH THE US WIDENED 18 TO 1683 BILLION HONG KONG DOLLARS US218 BILLION FROM HK1422 BILLION A YEAR EARLIER THE SURPLUS WAS BOOSTED BY A 28 RISE IN USBOUND REEXPORTS IN THE MONTH HONG KONG POSTED A TRADE DEFICIT OF HK606 BILLION WITH CHINA WHICH WAS THE COLONY'S LARGEST MARKET FOR DOMESTIC EXPORTS AND REEXPORTS FIGURES FOR THE YEAR EARLIER WEREN'T AVAILABLE 9309140115 930914 BUSINESS BRIEF WR GRACE TO TAKE A CHARGE TO REFLECT INSURANCE REDUCTION FOR ASBESTOS CLAIMS WR GRACE & CO SAID THAT IT WOULD TAKE A 300 MILLION OR 330 A SHARE CHARGE IN THE THIRD QUARTER TO REFLECT A REDUCTION IN ITS INSURANCE COVERAGE FOR ASBESTOS DAMAGE CLAIMS THE SPECIALTY CHEMICAL AND HEALTHCARE COMPANY SAID THE CHARGE WAS NECESSARY AFTER THE US COURT OF APPEALS FOR THE SECOND CIRCUIT EARLIER THIS MONTH REVERSED A LOWER COURT RULING ON A TRIGGER DATE FOR CALCULATING ASBESTOS PROPERTY DAMAGE THE APPEALS COURT RULED THAT INSURANCE COVERAGE BEGINS WHEN ASBESTOSCONTAINING MATERIAL WAS INSTALLED RATHER THAN WHEN IT WAS DISCOVERED AS LOWER COURTS HAD RULED THE COMPANY BASED IN BOCA RATON FLA SAID THAT WHILE THE COURT'S DECISION DOES NOT AFFECT GRACE'S TOTAL AMOUNT OF PREVIOUSLY REPORTED INSURANCE IN EXCESS OF 15 BILLION THE EFFECT OF THE RULING WILL BE TO LIMIT GRACE'S AVAILABLE PROPERTY DAMAGE INSURANCE COVERAGE TO APPROXIMATELY 720 MILLION THE COMPANY SAID THAT TOGETHER WITH TAX BENEFITS ITS REMAINING INSURANCE COVERAGE IS CONSIDERED ADEQUATE TO COVER ALL PENDING ASBESTOSRELATED LITIGATION GRACE SAID IT WILL ASK FOR RECONSIDERATION OF THE RULING AND WILL APPEAL IF THE RULING ISN'T CHANGED THE QUARTERLY CHARGE WON'T HAVE MUCH OF AN EFFECT ON THE COMPANY'S CASH FLOW SINCE GRACE HAS ALREADY PAID ABOUT 325 MILLION ON ASBESTOS CLAIMS WITHOUT INSURANCE REIMBURSEMENT IN THE YEARAGO THIRD QUARTER GRACE REPORTED A LOSS OF 821 MILLION OR 92 CENTS A SHARE INCLUDING A 140MILLION NONRECURRING CHARGE TO CLOSE A PLANT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GRACE ROSE 375 CENTS TO CLOSE AT 3750 9309140114 930914 WHO'S NEWS TIME WARNER INC'S BOOKOFTHEMONTH TO HAVE NEW CHIEF NEW YORK TIME WARNER INC'S BOOKOFTHEMONTH CLUB REPLACED ITS EDITOR IN CHIEF BRIGITTE WEEKS WITH AN EDITOR WHO HELPED BUILD THE COMPANY'S QUALITY PAPERBACK BOOK CLUB INTO THE COUNTRY'S SECOND LARGEST EFFECTIVE IMMEDIATELY TRACY BROWN 42 YEARS OLD WILL BE BOOKOFTHEMONTH CLUB'S EDITOR IN CHIEF UNLIKE MS WEEKS WHOSE BACKGROUND IS IN JOURNALISM MR BROWN HAS SPENT MOST OF HIS CAREER WORKING AS AN EDITOR FOR VARIOUS BOOK PUBLISHERS IN THE LATE 1980S HE WAS EDITORIAL DIRECTOR AT THE QUALITY PAPERBACK BOOK CLUB EXPANDING IT FROM A QUIRKY SMALL CLUB INTO A MORE MAINSTREAM CLUB WITH 900000 MEMBERS MS WEEKS 50 WHO HAS FILLED THE BOMC POST SINCE 1988 IS WIDELY RESPECTED IN THE PUBLISHING INDUSTRY BUT GEORGE ARTANDI WHO ARRIVED AT THE BOOK CLUB SEVERAL YEARS AGO AS CHIEF EXECUTIVE WITH A MANDATE TO BOOST FALLING PROFITS SAYS THAT WHILE PROFITS HAVE IMPROVED THE TIMES CALL FOR A DIFFERENT KIND OF EXECUTIVE WITH ALL THE NEW SUPERSTORES COMPETING WITH BOOK CLUBS I FEEL WHAT WE NEED IS SOMEBODY CLOSER TO THE PUBLISHING BUSINESS SAID MR ARTANDI I THINK TRACY HAS GREAT INSTINCTS HE PICKED SEVERAL TITLES FOR THE PAPERBACK BOOK CLUB INCLUDING THE BRIDGES OF MADISON COUNTY' AND WAITING TO EXHALE' WHICH THE MAIN BOOK CLUB PASSED OVER THOSE BOOKS WENT ON TO BECOME HUGE BESTSELLERS MS WEEKS HASN'T ANNOUNCED HER FUTURE PLANS 9309140113 930914 BUSINESS BRIEF KEYCORP TO ACQUIRE COLORADO BANK IN DEAL VALUED AT 95 MILLION ALBANY NY IN A MOVE THAT WOULD MORE THAN DOUBLE THE SIZE OF KEYCORP'S BANKING OPERATIONS IN COLORADO THE BANK AGREED TO ACQUIRE COMMERCIAL BANCORP OF COLORADO FOR ABOUT 95 MILLION IN STOCK THE NEWS PUSHED COMMERCIAL BANCORP'S SHARES UP 550 OR 25 TO CLOSE AT 2775 IN OVERTHECOUNTER TRADING YESTERDAY KEYCORP'S SHARES CLOSED AT 40 DOWN 3750 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE UNDER THE AGREEMENT KEYCORP WILL EXCHANGE 0746 OF ITS SHARES PER COMMERCIAL BANCORP SHARE AS A RESULT KEYCORP WILL ISSUE ABOUT 24 MILLION SHARES BASED ON KEYCORP'S CLOSING PRICE ON FRIDAY OF 39625 THE TRANSACTION IS VALUED AT ABOUT 951 MILLION AS OF JUNE 30 KEYCORP HAD 999 MILLION SHARES OUTSTANDING COMMERCIAL BANCORP HAD 28 MILLION SHARES OUTSTANDING COMMERCIAL BANCORP A DENVER HOLDING COMPANY SPECIALIZES IN SMALLBUSINESS LENDING AS OF JUNE 30 ITS 10 CENTURY BANKS HAD 356 MILLION IN ASSETS FOLLOWING THE ACQUISITION WHICH IS EXPECTED TO BE COMPLETED WITHIN THE FIRST HALF OF 1994 CENTURY BANKS WILL BE MERGED WITH KEYCORP'S KEY BANK OF COLORADO WHICH KEYCORP ACQUIRED IN JUNE KEY BANK OF COLORADO HAS FOUR BRANCHES AND 250 MILLION IN ASSETS KEYCORP HAS ASSETS OF OVER 32 BILLION COMMERCIAL BANCORP'S SHAREHOLDERS AND REGULATORS MUST APPROVE THE TRANSACTION 9309140112 930914 INVESTORS PLANNING PLATFORM OFF TEXAS TO UNLOAD OIL TANKERS CORPUS CHRISTI TEXAS A GROUP OF US AND GERMAN INVESTORS SAID THEY PLAN TO BUILD A 450 MILLION OIL PLATFORM IN THE GULF OF MEXICO AT WHICH SUPERTANKERS WOULD UNLOAD THEIR CARGO THE PROJECT CALLED PETROPORT WOULD BE CONSTRUCTED 35 MILES OFF THE COAST OF FREEPORT TEXAS WHERE A PIPELINE WOULD TAKE THE CRUDE TO ONSHORE STORAGE FACILITIES FROM THERE THE CRUDE COULD BE TRANSPORTED INTO THE EXISTING PIPELINE SYSTEM TO THE NUMEROUS GULF COAST REFINERIES AND CHEMICAL PLANTS OR TO PIPELINES THAT HEAD NORTH THE IDEA BEHIND PETROPORT IS TO PROVIDE A SAFER AND MORE ECONOMICAL PATH FOR THE GROWING AMOUNT OF OIL THAT THE US IS IMPORTING SUPERTANKERS ARE GENERALLY TOO LARGE TO DOCK AT GULF COAST PORTS AND EITHER UNLOAD THEIR OIL AT A PLATFORM OFF THE COAST OF LOUISIANA OR EMPLOY A TECHNIQUE CALLED LIGHTERING WHERE SMALLER VESSELS LOAD THE OIL AT SEA AND BRING IT TO SHORE BUT WITH SHIPPING LANES AND PORTS CROWDED PETROPORT BELIEVES IT CAN GRAB BUSINESS FROM COMPANIES THAT LIGHTER PETROPORT IS JOINTLY OWNED BY INTERNATIONAL PETROBANK INC A GROUP OF INVESTORS THAT INCLUDES SOME WHO WORKED AT MAJOR OIL COMPANIES AND PBKBB INC PBKBB IS JOINTLY OWNED BY CLOSELY HELD PARSONS BRINKERHOFF NEW YORK AND THE GERMAN FIRM PREUSSAG AG OF HANOVER IN 1990 AN OILINDUSTRY GROUP LOOKED AT THE POSSIBILITY OF BUILDING A SIMILAR PLATFORM AT A COST OF 12 BILLION BUT SHELVED THE IDEA 9309140111 930914 POLITICS & POLICY CLINTON FINALLY MANAGING AGENDA SAYS PANEL WHICH URGES HIM TO FOCUS ON DOMESTIC ISSUES BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS SLOWLY GAINING CONTROL OF HIS AGENDA BUT HE WOULD BE WRONG TO THINK THAT FOREIGNPOLICY TRIUMPHS LIKE YESTERDAY'S SOUTH LAWN CEREMONIES WILL WIN MUCH CREDIT WITH VOTERS THE WALL STREET JOURNAL'S PANEL OF POLITICAL EXPERTS AGREES HIS HOPES THE EXPERTS SAY REST WITH DOMESTIC ISSUES AND THAT'S WHERE HE'S SHOWING SOME IMPROVEMENT HE'S MUCH MORE ON TOP OF THE DEBATE AND THAT HELPS SAYS DEMOCRATIC POLLSTER CELINDA LAKE THE GROUP'S NEWEST MEMBER HE IS HANGING ON AT LEAST CONCEDES GOP STRATEGIST JOHN SEARS AND THAT'S HELPING HIS PUBLIC PERCEPTION ALAN BARON A DEMOCRATIC STRATEGIST OFFERS AN EXPLANATION I EXPECT HE'S PICKED UP BECAUSE EXPECTATIONS ARE LOWER HE SAYS THE FEELING AT FIRST WAS THAT HE WOULD DO REMARKABLY WELL BUT IF THE PRESIDENT IS MORE IN CONTROL OF HIS AGENDA THE PANELISTS MOSTLY AGREE THAT AGENDA IS A DIFFICULT AND PROBABLY A DANGEROUS ONE MS LAKE EXPRESSES MORE OPTIMISM THAN THE OTHERS MR CLINTON SAYS REPUBLICAN THEORETICIAN KEVIN PHILLIPS HAS IMPROVED HIS MANAGEMENT OF AN AGENDA HE CHOSE WHEN HE DIDN'T KNOW WHAT HE WAS DOING IN THEIR PREVIOUS SESSION WITH JOURNAL REPORTERS AND EDITORS IN EARLY SUMMER THE EXPERTS AGREED THAT THEY HAD NEVER SEEN OR EVEN HEARD OF A PRESIDENT GETTING OFF TO SUCH A POOR START IT WOULD TAKE MONTHS FOR HIM TO DIG HIMSELF OUT THEY PREDICTED THE DIGGING THEY AGREE IS UNDER WAY HE'S TAKING THE FIRST STEPS IN CONTROLLING THE EVENTS ON HIS AGENDA SAYS DEMOCRATIC STRATEGIST GREG SCHNEIDERS BUT THE EXPERTS AREN'T QUITE SURE OF WHAT THE OUTCOME MIGHT BE MOST LIKELY THEY TEND TO THINK TROUBLE AS THE PANELISTS SEE IT MR CLINTON'S AGENDA FEATURES THE NORTH AMERICAN FREE TRADE AGREEMENT HEALTH CARE AND STREAMLINING OR REINVENTING GOVERNMENT IT DOES NOT THEY AGREE INCLUDE FOREIGN AFFAIRS EVEN ON A DAY HE PRESIDED OVER THE HISTORIC RAPPROCHEMENT BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION IT WON'T HELP BILL CLINTON ANY MORE THAN THE BERLIN WALL COMING DOWN HELPED GEORGE BUSH SAYS MR BARON IT'S NOT A WINNER OR A LOSER MS LAKE AGREES IN POLLS CONDUCTED BY HER FIRM SHE SAYS FOREIGN AFFAIRS TRANSLATES LESS FOR BILL CLINTON THAN ANY PRESIDENT WE'VE EVER SEEN GOING BACK TO 1952 VOTERS SHE SAYS CLEARLY ELECTED BILL CLINTON AS A DOMESTIC PRESIDENT AND SO MR CLINTON FACING DIFFICULT CONGRESSIONAL ELECTIONS NEXT YEAR NEEDS CONGRESSIONAL VICTORIES ON NAFTA AND HEALTH CARE AND A PSYCHOLOGICAL VICTORY ON REINVENTING GOVERNMENT A REALLY DIFFICULT AGENDA SAYS MR SCHNEIDERS NAFTA THE FIVE PANELISTS AGREE IS THE TOUGHEST SELL REAL VOTERS THINK THIS IS A BAD THING SAYS MS LAKE THEY DON'T THINK WE MAKE ANYTHING MEXICANS CAN AFFORD AND THEY DON'T THINK MEXICANS MAKE ANYTHING WE WANT TO BUY MR PHILLIPS SAYS THE VOTERS INSTINCTIVELY FIGURE THAT IT'S GOOD FOR BANKS AND BIG COMPANIES AND THAT'S BASICALLY CORRECT NAFTA WOULDN'T BE SO MUCH A PROBLEM SAYS MR SEARS WHO SUPPORTS THE CONCEPT IF PEOPLE WEREN'T FEELING SUCH A SQUEEZE THEY'RE WORRIED ABOUT THEIR JOBS MR CLINTON MADE A MISTAKE THE PANELISTS SAY IN SIGNING ON TO MR BUSH'S VERSION OF A FREETRADE AGREEMENT WITH MEXICO AND CANADA HE SHOULD HAVE SAID WE'RE GOING TO GO BACK AND DELIVER A GOOD DEMOCRATIC AGREEMENT' MS LAKE ARGUES HE NEVER SHOULD HAVE ROLLED WITH BUSH'S PROPOSAL ADDS MR PHILLIPS WHO CONTENDS THAT EVEN REPUBLICANS WHO HAD FAVORED IT ARE HAVING SECOND THOUGHTS MR SEARS FIGURES MR CLINTON IS BETWEEN A ROCK AND A HARD PLACE ON NAFTA IF HE WINS IT WILL BE WITH REPUBLICAN HELP AND REPUBLICANS WILL SHARE IN THE CREDIT IF HE LOSES HE GETS BLAMED FOR NOT PUSHING HARD ENOUGH REPUBLICANS THE PANELISTS SAY MAY HAVE TO GO ALONG WITH THE PACT TO OVERCOME THE NOTION THAT THE GOP REPRESENTS POLITICAL GRIDLOCK MR PHILLIPS EXPECTS THE SAME GOP PERFORMANCE ON HEALTH CARE FACADEMANSHIP HE CALLS IT THE PANELISTS SEE HEALTH CARE AS THE ONE ISSUE ON WHICH MR CLINTON COULD SCORE A MEANINGFUL VICTORY THOUGH THEY ARE NOT CONVINCED IT IS YET WITHIN HIS REACH WORKING FOR MR CLINTON IS THE FACT THAT VOTERS STILL BELIEVE THAT IN MS LAKE'S WORDS IT'S ONLY THE DEMOCRATS WHO CAN DELIVER SHE BELIEVES VOTERS WILL APPRECIATE SOME OF THE BENEFITS THEY WOULD RECEIVE UNDER THE PLAN IN THE SHORT RUN WHAT THEY GET INITIALLY WILL BE GOOD THINGS THE PRESCRIPTION STUFF THEY'LL GET THE PORTABILITY AND THEY'LL GET THE HEALTH SECURITY KNOWING THEY CAN'T BE LAID OFF WHEN THEY'RE SICK IT'S ONE OF THE ISSUES SHE SAYS WHERE NEITHER ROSS PEROT NOR THE REPUBLICANS HAS ANY CREDIBILITY THE PROBLEM THE PANELISTS SAY IS FIVE YEARS OR MORE DOWN THE ROAD WHEN THE COSTS MAY BEGIN TO PILE UP IT WILL BE DIFFICULT FOR VOTERS TO FIGURE OUT IF THE PUSH TO STREAMLINE GOVERNMMENT LED BY VICE PRESIDENT AL GORE IS WORKING THE PANELISTS SAY BUT MAYBE IT WON'T MAKE MUCH DIFFERENCE THEY SAY WHAT COUNTS IS THAT THE PUSH WILL BE SEEN AS AN EFFORT TO TAME GOVERNMENT THEY'LL GET SOME CREDIT FOR IT SAYS MR SEARS MS LAKE SAYS THE MESSAGE IS ESPECIALLY IMPORTANT BECAUSE IT COMES JUST BEFORE THE LAUNCH OF A BIG INITIATIVE THAT WILL EXPAND GOVERNMENTHEALTH CARE THE PANELISTS TEND TO THINK THAT IF IT WEREN'T FOR MR PEROT THE BEST GOP STRATEGY MIGHT BE SOMETHING ON THE ORDER OF BENIGN NEGLECT THE REAL REPUBLICAN OPPORTUNITY SAYS MR PHILLIPS IS TO ALLOW THE DEMOCRATS TO CONTINUE SCREWING UP AND SINCE IT'S SUCH HIGHWATTAGE SCREWINGUP THEY DON'T NEED TO GET OUT THERE AND TRIP OVER THEIR OWN FEET WHICH AFTER ALL IS ONE OF THEIR SPECIALTIES MR BARON ADDS THAT IT DOESN'T MATTER WHAT THEY THE REPUBLICANS DO THIS MIDTERM ELECTION IS GOING TO BE A REPUBLICAN ELECTION NO MATTER HOW THEY POSITION THEMSELVES HE EXPECTS THE GOP WILL PICK UP TWO OR THREE SEATS IN THE SENATE AND 25 OR MORE IN THE HOUSE THE PANELISTS GENERALLY DISMISS THE THREAT POSED TO THE REPUBLICANS BY THE CHRISTIAN RIGHT SOCIAL ISSUES SEEM LESS IMPORTANT SAYS MR BARON WHEN PEOPLE ARE FEARFUL ABOUT THE ECONOMY WHEN THEY WORRY ABOUT THEIR KIDS GETTING JOBS WHEN THEY HAVE THEIR KIDS LIVING AT HOME THERE'S ONE EXCEPTION GAYS IN THE MILITARY MR CLINTON BY THE MANNER IN WHICH HE TOOK UP THE CAUSE HAS DRIVEN DOWN POLL SUPPORT FOR THE IDEA BY 20 POINTS SAYS MS LAKE BUT MR PEROT IS SOMETHING ELSE HE CREATES A VACUUM IN THE REPUBLICAN PARTY SAYS MS LAKE AND IF I WERE A REPUBLICAN I'D WORRY ABOUT IT MR SEARS IS A REPUBLICAN AND HE DOES WORRY ABOUT IT HE JUST SITS THERE AND TAKES ON CLINTON AND REPUBLICANS SAY HEY THIS IS GREAT' MR SEARS SAYS BUT IT ISN'T GREAT HE SAYS BECAUSE MR PEROT IS STEALING THE GOP THUNDER THE PANELISTS AGREE THAT MR PEROT'S POPULARITY ISN'T WHAT IT USED TO BE HE'S CLEARLY PEAKED SAYS MR PHILLIPS BUT THE TEXAS BILLIONAIRE CONTROLS SIGNIFICANT NUMBERS OF VOTERS AND THAT COULD BE A BIG PROBLEM AT A TIME WHEN BOTH PARTIES ARE IN MR PHILLIPS'S WORDS IN A BREAKDOWN PATTERN 9309140110 930914 INTERNATIONAL US RELAXES TRADE EMBARGO ON VIETNAM FIRMS CAN BID ON PROJECTS FUNDED BY INTERNATIONAL DEVELOPMENT AGENCIES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON EASED THE US TRADE EMBARGO ON VIETNAM CLEARING THE WAY FOR SOME AMERICAN COMPANIES TO DO BUSINESS THERE FOR THE FIRST TIME IN 18 YEARS THE WHITE HOUSE ANNOUNCED YESTERDAY THAT US BUSINESSES WILL BE ALLOWED TO BID ON DEVELOPMENT PROJECTS FUNDED BY INTERNATIONAL LENDING INSTITUTIONS US COMPANIES WILL CONTINUE TO BE BARRED HOWEVER FROM PURSUING OTHER TRADE AND COMMERCIAL INTERESTS THERE THE WORLD BANK AND ASIAN DEVELOPMENT BANK ARE CONSIDERING AN ESTIMATED 500 MILLION IN PROJECTS IN VIETNAM INCLUDING REBUILDING PORTS AND ROADS IMPROVING TELECOMMUNICATIONS AND THE ELECTRICAL GRID AND AGRICULTURAL DEVELOPMENT THE EMBARGO WON'T BE LIFTED TOTALLY SAY ADMINISTRATION OFFICIALS UNTIL THE US IS SATISFIED THAT VIETNAM HAS TURNED OVER ALL INFORMATION ON AMERICANS MISSING OR HELD PRISONER AFTER THE VIETNAM WAR VIETNAM HAS OFFERED SIGNIFICANT COOPERATION ON THE EMOTIONALLY CHARGED ISSUE SAY OFFICIALS AND YESTERDAY'S DECISION ACKNOWLEDGES THAT BUT OFFICIALS SAY THAT SOME QUESTIONS STILL NEED TO BE RESOLVED BEFORE REMAINING RESTRICTIONS CAN BE LIFTED US BUSINESS INTERESTS ARE LOBBYING THE WHITE HOUSE HEAVILY TO END THE EMBARGO AS SOON AS POSSIBLE VIETNAM THEY BELIEVE COULD BE A LUCRATIVE MARKET AND THEY FEAR THEY ARE LOSING OUT TO ASIAN AND EUROPEAN COMPETITORS THERE SOME VETERANS AND FAMILY MEMBERS OF THOSE LOST IN VIETNAM VEHEMENTLY OPPOSE ANY RAPPROCHEMENT AND THE ISSUE IS AN ESPECIALLY SENSITIVE ONE FOR MR CLINTON WHO AVOIDED MILITARY SERVICE DURING THE VIETNAM WAR THE ADMINISTRATION HAS BEEN PARTICULARLY SKITTISH SINCE THE RUSSIAN GOVERNMENT TURNED OVER A SERIES OF DOCUMENTS FROM ITS ARCHIVES SUGGESTING THAT VIETNAM INTENTIONALLY UNDERREPORTED THE NUMBER OF PRISONERS IT HELD AT THE END OF THE WAR US MILITARY AND INTELLIGENCE EXPERTS DOUBT THE VERACITY OF THESE REPORTS BUT THE ADMINISTRATION STILL FEARS THAT IT COULD BE SURPRISED AND EMBARRASSED IF IT MOVES TOO QUICKLY PRESIDENT BUSH FIRST MOVED TO EASE THE EMBARGO LATE LAST YEAR ALLOWING US COMPANIES TO SET UP OFFICES IN HANOI BUT PROHIBITING THEM FROM CONDUCTING ANY BUSINESS THE CLINTON ADMINISTRATION FOLLOWED UP IN JULY WHEN IT STOPPED BLOCKING INTERNATIONAL LENDING TO VIETNAM YESTERDAY'S DECISION WAS A LOGICAL STEP BECAUSE IT FREES AMERICAN COMPANIES TO BID ON PROJECTS BACKED BY INTERNATIONAL LENDING INSTITUTIONS WHICH RECEIVE SIZABLE FUNDING FROM THE US NEVERTHELESS THE ACTION WAS A FUNDAMENTALLY CAUTIOUS ONE REFLECTING THE POLITICAL SENSITIVITIES OF THE ISSUE AT THE SAME TIME AS THE VIETNAM ANNOUNCEMENT THE ADMINISTRATION EXTENDED RESTRICTIONS ON TRADING WITH CUBA AND NORTH KOREA UNDER THE TRADING WITH THE ENEMY ACT 9309140109 930914 MONDAY'S MARKETS STOCK PRICES ARE MIXED BONDS FLAT OIL GOLD SHARES FALL ON INFLATION OUTLOOK DOLLAR POSTS GAINS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES ENDED MIXED AS INVESTORS UNLOADED OIL AND GOLD SHARES IN THE BELIEF THAT INFLATION IS EBBING BOND PRICES WERE UNCHANGED AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE ROSE 1258 POINTS TO 363421 AND STANDARD & POOR'S 500STOCK INDEX GAINED 034 TO 46206 BUT THE NASDAQ COMPOSITE INDEX SLID 399 TO 74032 THE THEME OF DISINFLATION OR POSSIBLY EVEN DEFLATION CONTINUES TO PERMEATE THE MARKETS SAID JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ MR MCALINDEN SAID GOLD AND OIL SHARES WERE BRUISED AS INVESTORS CONTINUED REACTING TO FRIDAY'S REPORT OF TAME PRODUCER PRICES NEWMONT MINING FELL 1 7/8 TO 44 3/4 AMERICAN BARRICK 5/8 TO 20 7/8 HOMESTAKE MINING 5/8 TO 15 3/8 TEXACO 3/4 TO 65 3/8 PHILLIPS PETROLEUM 1/2 TO 31 1/4 AND UNOCAL 1/4 TO 27 5/8 BUT THE PROSPECT OF STABLE PRICES PUSHED ONE INTERESTSENSITIVE BAROMETER THE DOW JONES UTILITY AVERAGE UP 040 TO 25646 MATCHING ITS ALLTIME HIGH THIS INDEX OF 15 UTILITY STOCKS IS CONSIDERED BY SOME ANALYSTS AS A LEADING INDICATOR OF BOND AND STOCK PRICES I THINK PEOPLE ARE NOW SLOWLY ADJUSTING TO THE FACT THAT WE ARE FACING A BENIGN INFLATIONARY ENVIRONMENT SAID GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG TODAY INVESTORS WILL GET ANOTHER READING ON INFLATION WHEN THE LABOR DEPARTMENT RELEASES ITS REPORT ON AUGUST CONSUMER PRICES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 018 TO 11303 IN MAJOR MARKET ACTION STOCK PRICES ENDED MIXED VOLUME TOTALED 2434 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1057 ISSUES ADVANCED AND 969 DECLINED BOND PRICES WERE UNCHANGED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE STOOD AT 588 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTE AT 16085 MARKS AND 10632 YEN COMPARED WITH 15975 MARKS AND 10605 YEN FRIDAY 9309140108 930914 WOLF FINANCIAL UNIT IS ACCUSED BY SEC OF EXCESSIVE MARKUPS NEW YORK THE SECURITIES AND EXCHANGE COMMISSION ACCUSED A BROKERDEALER SUBSIDIARY OF WOLF FINANCIAL GROUP INC OF CHARGING EXCESSIVE MARKUPS ON NEWS COMMUNICATIONS INC STOCK IN A CIVIL COMPLAINT FILED IN FEDERAL DISTRICT COURT IN MANHATTAN THE SEC SAID FN WOLF & CO NEW YORK CHARGED MARKUPS OF BETWEEN 40 AND 125 OF THE PREVAILING MARKET PRICE FOR THE STOCK NEWS COMMUNICATIONS OWNS AND OPERATES FREE NEWSPAPERS IN METROPOLITAN NEW YORK AND EASTERN LONG ISLAND THE MARKUPS WERE MADE ON MORE THAN 940 SALES BETWEEN APRIL 20 1988 AND MAY 20 1988 THE SEC SAID THE COMMISSION ALSO ALLEGED THAT FN WOLF AND ITS PRESIDENT FRANKLIN N WOLF ARTIFICIALLY INFLATED OR STABILIZED THE STOCK'S PRICE THE SEC IS SEEKING 872000 THAT IT SAYS FN WOLF EARNED BECAUSE OF THE MARKUPS NEITHER MR WOLF OF NEW VERNON NJ NOR REPRESENTATIVES OF FN WOLF AND WOLF FINANCIAL GROUP WERE AVAILABLE FOR COMMENT IN JANUARY THE SEC CHARGED FN WOLF WITH USING MISLEADING SALES TACTICS TO PROMOTE SHARES OF TREATS INTERNATIONAL ENTERPRISES INC THAT CASE IS PENDING SAID RICHARD H WALKER REGIONAL SEC DIRECTOR IN NEW YORK 9309140107 930914 TECHNOLOGY & HEALTH CLINTON HEALTH PLAN SKIRTS ISSUE OF BIAS BY INSURERS AGAINST RISKIER CUSTOMERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON HEALTH PLAN LEAVES UNANSWERED ONE OF THE MORE DIFFICULT QUESTIONS IN THE REFORM DEBATE HOW TO KEEP INSURANCE COMPANIES FROM DISCRIMINATING AGAINST THE OLD THE SICK AND THE POOR ALTHOUGH THE PLAN BREAKS NEW GROUND BY ORDERING INSURERS TO ACCEPT ALL COMERS AND TO CHARGE EACH CUSTOMER THE SAME RATE REGARDLESS OF HEALTH STATUS IT LEAVES OPEN HOW TO COMPENSATE INSURERS WHO TAKE ON MORE THAN THEIR FAIR SHARE OF SAY DIABETICS OR MEDICAID RECIPIENTS UNLESS INSURERS ARE REWARDED FOR TAKING HIGHERRISK CUSTOMERS THEY WOULD HAVE INCENTIVE TO DISCOURAGE SUCH CUSTOMERS FROM SIGNING UP FOR THEIR PROGRAMS THIS IS AN AREA THAT ABSOLUTELY HAS TO BE FILLED IN SAID ROBERT LASZEWSKI PRESIDENT OF HEALTH POLICY AND STRATEGY ASSOCIATES A WASHINGTON CONSULTING FIRM IT'S CRUCIAL TO THE SUCCESS OF THE PLAN THE ADMINISTRATION DEFERS THE ISSUE THE 239PAGE OUTLINE OF THE CLINTON PROGRAM REFERS THE MATTER TO THE NATIONAL HEALTH BOARD A GOVERNMENT AGENCY THAT WOULD BE CREATED TO OVERSEE THE HEALTHCARE PROGRAM COMING UP WITH SUCH A SYSTEM WON'T BE EASY NOT ONLY ARE THE MECHANICS EXTREMELY COMPLEX BUT SUCH SYSTEMS ALTHOUGH THEY HAVE BEEN TRIED AT THE STATE LEVEL ARE IN THEIR INFANCY THEY WOULD HAVE TO BUILD THIS PRETTY MUCH FROM SCRATCH SAID WILLIAM JONES DIRECTOR OF HEALTH ISSUES FOR AETNA LIFE & CASUALTY CO AND WHAT THEY'RE TRYING TO DO IS PRETTY COMPLEX THE DOWNSIDE OF MAKING MISTAKES IN THE RISKADJUSTMENT MECHANISM IS HUGE IF INSURANCE COMPANIES LACK ADEQUATE INCENTIVE TO TAKE ON RISKY PATIENTS THEY MIGHT FOR INSTANCE NOT WORK WITH DOCTORS IN POOR NEIGHBORHOODS IN ADDITION THEY MIGHT USE ONLY YOUNG PEOPLE IN THEIR ADVERTISEMENTS AND SEND A MESSAGE THAT THEY DON'T WANT OLDER PEOPLE THEY ALSO MIGHT OFFER CUSTOMERS FEW CHOICES WHEN IT COMES TO PICKING FOR INSTANCE A HEART OR CANCER SPECIALIST SO CONSUMERS WITH THOSE CONDITIONS WOULD LOOK TO COMPANIES WITH MORE SPECIALISTS IN THOSE FIELDS THE RISKADJUSTMENT QUESTION IS AN EXAMPLE OF THE MANY TECHNICAL PROBLEMS ARISING FROM THE CLINTON HEALTH PLAN'S AMBITIOUS GOALS THE PLAN ATTEMPTS TO MAKE HEALTH INSURANCE AFFORDABLE FOR EVERYONE BY ASSURING THAT THE OLD PAY THE SAME FOR HEALTH INSURANCE AS THE YOUNG AND THAT THE SICK PAY THE SAME AS THE HEALTHY THE PLAN ALSO GUARANTEES THAT NO ONE IS LEFT UNCOVERED BY ORDERING COMPANIES TO ACCEPT EVERY APPLICANT AND PAYING FOR THOSE UNABLE TO AFFORD IT OVERT DISCRIMINATION AGAINST RISKY APPLICANTS BY INSURANCE COMPANIES CAN BE PREVENTED BY LAW BUT MORE SUBTLE FORMS OF DISCRIMINATION ARE HARDER TO ELIMINATE THAT'S WHERE THE RISKADJUSTMENT MECHANISMS COME INTO PLAY EARLIER THIS YEAR NEW YORK CREATED A PROGRAM UNDER WHICH INSURERS MUST TAKE ALL APPLICANTS AND CHARGE EACH THE SAME RATES IT SET UP FUNDING POOLS UNDER WHICH INSURANCE COMPANIES WITH YOUNGER CUSTOMERS PAY INTO THE POOL AND INSURERS WITH OLDER CUSTOMERS COLLECT FROM IT A SEPARATE POOL LETS INSURERS WITHDRAW MONEY FOR RISKIER PROCEDURES RISK ALSO CAN BE MEASURED BY EVALUATING THE BILLS PAID BY INSURANCE COMPANIES OR THE DIAGNOSIS OFFERED BY DOCTORS AN OBVIOUS PROBLEM IS THE TIME AND EXPENSE INVOLVED IN GATHERING THE DATA FROM THE INSURANCE COMPANIES AETNA'S MR JONES QUESTIONS THE COSTS IT DOESN'T MAKE SENSE TO SPEND 2 MILLION JUST TO MOVE 1 MILLION FROM ONE INSURANCE PLAN TO ANOTHER HE SAYS BUT HE BELIEVES A WORKABLE RISKADJUSTMENT SYSTEM IS POSSIBLE IF IT IS KEPT SIMPLE 9309140106 930914 WHO'S NEWS RENAULT VOLVO NAME FOUR MEN TO BOARD OF MERGED CONCERN STOCKHOLM RENAULT SA AND VOLVO AB APPOINTED FOUR NEW MEMBERS TO A MANAGEMENT BOARD WHICH WILL DIRECT THE INTEGRATION OF CAR AND TRUCK OPERATIONS UNDER THE NEWLY MERGED COMPANY RENAULTVOLVO RVA RENAULT AND VOLVO UNVEILED THE LONGAWAITED MARRIAGE LAST WEEK THE NEW COMPANY WILL BEGIN OPERATIONS AS THE WORLD'S NO 6 AUTO GROUP JAN 1 RENAULT'S TWO MEMBERS ON THE BOARD WILL BE PHILIPPE GRAS THE 56YEAROLD FORMER HEAD OF RENAULT'S TRUCK DIVISION AND AN EXECUTIVE VICE PRESIDENT SINCE 1989 AND PATRICK FAURE 47 YEARS OLD AN EXECUTIVE VICE PRESIDENT IN CHARGE OF RENAULT'S GLOBAL MARKETING AND SALES SINCE 1991 MR GRAS AND MR FAURE WERE MEMBERS OF JOINT COUNCILS SET UP BY RENAULT AND VOLVO DURING A THREEYEAR STRATEGIC ALLIANCE THAT PRECEEDED A FULL MERGER VOLVO'S REPRESENTATIVES ON THE MANAGEMENT BOARD WILL BE LENNART JEANSSON 52 PRESIDENT OF THE SWEDISH COMPANY'S CAR DIVISION AND KARLERLING TROGEN 47 CURRENTLY HEAD OF VOLVO'S US HEAVY TRUCK OPERATIONS BUT LITTLE KNOWN OUTSIDE THE COMPANY MR TROGEN IS EXPECTED TO EMERGE AS RENAULTVOLVO'S AUTHORITY ON TRUCKS THE SWEDISH ENGINEER DIRECTED AN IMPRESSIVE TURNAROUND AT NORTH CAROLINABASED VOLVO GM HEAVY TRUCK CORP FORGING CLOSER TIES BETWEEN VOLVO GM HEAVY TRUCK AND RENAULT'S STRUGGLING US UNIT MACK TRUCKS INC LOOMS AS A KEY CHALLENGE ANALYSTS SAID THE FOUR WILL JOIN LOUIS SCHWEITZER RENAULT'S CHAIRMAN AND CHIEF EXECUTIVEDESIGNATE OF THE MERGED GROUP WHO WILL ACT AS CHAIRMAN FOR THE MANAGEMENT BOARD 9309140105 930914 WHO'S NEWS ICF KAISER INTERNATIONAL INC ICF KAISER INTERNATIONAL INC FAIRFAX VA REBECCA P MARK WAS ELECTED A DIRECTOR OF THIS CONSULTING ENGINEERING AND CONSTRUCTION CONCERN INCREASING THE BOARD TO SEVEN MS MARK 39 YEARS OLD IS CHAIRWOMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ENRON DEVELOPMENT CORP A UNIT OF ENRON CORP HOUSTON 9309140104 930914 GM'S HUGHES AIRCRAFT SAYS ITS PLANS TO KEEP ITS BASE IN CALIFORNIA LOS ANGELES HUGHES AIRCRAFT CO CALIFORNIA'S LARGEST MANUFACTURING EMPLOYER SAID IT WILL KEEP ITS HEADQUARTERS IN THE GOLDEN STATE DESPITE PAST STATEMENTS OF DISMAY WITH CONDITIONS HERE WITH CONSIDERABLE FANFARE AND CALIFORNIA GOV PETE WILSON AT HIS SIDE HUGHES CHAIRMAN C MICHAEL ARMSTRONG SAID HE SENSED A NEW ATMOSPHERE OF COOPERATION IN STATE POLICIES TOWARD BUSINESS AND PRAISED BUSINESS TAX REDUCTIONS RECENTLY INTRODUCED BY GOV WILSON HUGHES A GENERAL MOTORS CORP UNIT HAS BEEN REDUCING ITS CALIFORNIA PAYROLLS FOR SOME YEARS THE DEFENSE AND ELECTRONICS CONCERN CURRENTLY EMPLOYS ABOUT 40000 OF ITS 58000 WORLDWIDE PAYROLL IN THE STATE OFF FROM A 1986 PEAK WHEN IT HAD MORE THAN 65000 OF ITS 82000 WORLDWIDE WORKERS IN CALIFORNIA FURTHER PAYROLL CUTS ARE EXPECTED SO THAT CALIFORNIA EMPLOYMENT BY THE END OF NEXT YEAR WILL TOTAL ABOUT 37000 OF A COUNT OF ABOUT 54000 WORLDWIDE A HUGHES SPOKESMAN SAID THE PERSONNEL COUNT AT HUGHES HEADQUARTERS ITSELF HAS DECLINED TO ABOUT 600 CURRENTLY FROM 1050 A YEAR AGO THE COMPANY SPOKESMAN SAID EVEN SO MR ARMSTRONG SAID THAT RECENT STEPS INCLUDING BRINGING THE OFTENCONTENTIOUS STATE BUDGET IN ON TIME WORKERS' COMPENSATION REFORM AND THE PROMISED TAX CUTS GIVE THE COMPANY OPTIMISM THAT CALIFORNIA INTENDS TO MAKE ITS BUSINESS ENVIRONMENT MORE COMPETITIVE 9309140103 930914 ASHLAND OIL UNIT'S DIESEL FUEL ASHLAND KY ASHLAND OIL INC'S ASHLAND PETROLEUM CO UNIT SAID IT IS NOW OFFERING A CLEANER BURNING LOWSULFUR DIESEL FUEL FOR USE ON HIGHWAYS THE UNIT SAID THE NEW FUEL MEETS AN ENVIRONMENTAL PROTECTION AGENCY STANDARD THAT TAKES EFFECT OCT 1 THE STANDARD SAYS DIESEL FUEL MUST CONTAIN NO MORE THAN 005 SULFUR DOWN FROM THE CURRENT MAXIMUM CONTENT OF 05 SULFUR ASHLAND PETROLEUM SAID IT HAS THE CAPACITY TO PRODUCE 62500 BARRELS A DAY OF THE FUEL AT ITS REFINERIES IN CATLETTSBURG KY ST PAUL PARK MINN AND CANTON OHIO 9309140102 930914 WHO'S NEWS SIEMENS UNIT CHANGES OFFICERS AT 3 COMPANIES NEW YORK SIEMENS CORP SHUFFLED EXECUTIVES AT THE MEDICAL INDUSTRIAL AUTOMATION AND ELECTROMECHANICAL RELAY UNITS OF THIS ELECTRONICS COMPANY SIEMENS CORP IS THE HOLDING COMPANY FOR US OPERATIONS OF SIEMENS AG WHICH HAS HEADQUARTERS IN MUNICH GERMANY ON OCT 1 ROBERT V DUMKE 54 YEARS OLD WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SIEMENS MEDICAL SYSTEMS BASED IN ISELIN NJ HE WILL SUCCEED ROBERT J MACKINNON 62 WHO IS RETIRING THE UNIT REPORTED ALMOST 18 BILLION IN SALES FOR THE FISCAL YEAR ENDED SEPT 30 1992 ROY H SLAVIN 48 WILL ASSUME MR DUMKE'S CURRENT POSITION AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ATLANTABASED SIEMENS INDUSTRIAL AUTOMATION INC WHICH HAD FISCAL 1992 SALES OF 170 MILLION MR SLAVIN WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF POTTER & BRUMFIELD INC BASED IN PRINCETON IND THE UNIT WHICH MAKES ELECTROMECHANICAL RELAY PARTS USED IN AUTOMOBILES AND TELECOMMUNICATIONS HAD FISCAL 1992 SALES OF 150 MILLION ROLF W COUSIN 52 CURRENTLY VICE PRESIDENT OPERATIONS AT POTTER & BRUMFIELD WILL SUCCEED MR SLAVIN AT THAT UNIT 9309140101 930914 HEARD ON THE STREET THE CLINTON HEALTH PLAN INVESTORS GREET MEDICAL PLAN WITH JUST A SNEEZE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL PRICE CONTROLS HEALTH ALLIANCES FEDERAL OVERSIGHT SUCH IDEAS WERE ENOUGH TO SEND INVESTORS FLEEING OUT OF HEALTHCARE STOCKS A COUPLE OF WEEKS AGO SO WHAT HAPPENED WHEN WALL STREET BEGAN TO DIGEST A DRAFT OF PRESIDENT CLINTON'S PLAN INCLUDING MANY OF THE PROVISIONS MOST DREADED BY THE HEALTHCARE INDUSTRY INVESTORS REACTED WITH A COLLECTIVE YAWN SURE BIG HEALTHCARE STOCKS CLOSED DOWN MODERATELY FOR THE DAY INSURER AETNA LIFE & CASUALTY FELL 13 US HEALTHCARE 34 AND HCAHOSPITAL CORP OF AMERICA 24 BUT THE DAMAGE WASN'T NEARLY AS BAD AS IT MIGHT HAVE BEEN GIVEN THE MANY ITEMS INCLUDED IN THE PROPOSAL THAT PREVIOUSLY MADE INVESTORS CRINGE WHAT GIVES THE ANSWER SAYS IRA LOSS A VICE PRESIDENT AT A NATWEST SECURITIES UNIT THAT COUNSELS INSTITUTIONAL INVESTORS ON DEVELOPMENTS IN WASHINGTON IS THAT NO ONE BELIEVES CLINTON CAN PULL IT OFF IF EVERYONE BELIEVED IT THESE STOCKS WOULD BE GETTING CLOCKED HE SAYS MOREOVER SPECIFIC PROVISIONS IN THE DRAFT HAD A FAMILIAR RING TO MANY BIG INVESTORS SAYS MR LOSS THERE'S NOT MUCH HERE THAT SURPRISED PEOPLE INDEED THE PLAN HAS MANY OF THE SAME FEATURES AS AN EARLIER VERSION DISMISSED BY THE WHITE HOUSE AS PHONY THAT CIRCULATED AMONG INVESTORS AND ANALYSTS SEVERAL WEEKS AGO THAT REPORT WHICH RECEIVED ATTENTION ON WALL STREET WAS ENOUGH TO CAUSE A ROUT IN THE STOCKS OF HEALTH MAINTENANCE ORGANIZATIONS ONE OTHER EXPLANATION FOR YESTERDAY'S MEEK RESPONSE BY INVESTORS IS THAT THEY'RE TIRED OF TRYING TO DECIPHER THE PLAN PEOPLE HAVE BEEN WHIPSAWED AND BURNT MORE THAN ONCE AND THEY'RE KEEPING THEIR POWDER DRY SAYS MR LOSS BUT DON'T THINK THE WORST IS OVER NO MATTER WHAT PROPOSAL FINALLY PASSES THERE WILL BE A MAJOR SHAKEUP IN THE INDUSTRY SAYS ROBERT FRIEDMAN AN ANALYST WITH MICHAEL PRICE'S MUTUAL SERIES MUTUAL FUND AND IT'S TOO EARLY TO KNOW WHO WILL GET HIT THE HARDEST MR LOSS BELIEVES THAT EVEN SOME OF THE BIGGEST PLAYERS SUCH AS LARGE MUTUAL FUNDS ARE ON THE SIDELINES UNTIL THE SMOKE SURROUNDING HEALTHCARE REFORM CLEARS THE BIG MUTUAL FUNDS CAME TO GRIPS WITH THE ISSUE MONTHS AGO WHEN THEY SOLD OFF LARGE AMOUNTS OF HEALTHCARE STOCKS AND INVESTED IN OTHER INDUSTRIES HE SAYS NOW YOU SEE ALL THE HEDGE FUNDS AND PENSION FUND MANAGERS TRYING TO TRADE THESE STOCKS BY DARTING IN AND OUT OF THE MARKET HE SAYS SUCH INVESTORS TRY TO MAKE A PROFIT BY TAKING ADVANTAGE OF SHORTTERM DIPS OR SURGES IN A STOCK'S PRICE SOME INVESTMENT PROS SAY THERE ARE STILL SOME HEALTHCARE STOCKS WORTH BUYING PARTICULARLY FOR INVESTORS WILLING TO TAKE ON HIGH RISKS YOU HAVE TO BE PREPARED TO TAKE A BUMPY RIDE SAYS MR LOSS NATWEST IS RECOMMENDING THE STOCKS OF SOME NURSING HOME COMPANIES FOR EXAMPLE THEY'VE BEEN OVERREGULATED FOR YEARS THERE'S NO WAY THEY COULD BECOME MORE REGULATED MR LOSS SAYS AND HE ADDS DEMOGRAPHICS ARE WORKING IN THE INDUSTRY'S FAVOR TO ME THE KEY IS THAT THE DEMAND FOR BEDS GROWS FASTER THAN THE SUPPLY IN PARTICULAR THE NATWEST OFFICIAL HAS KIND WORDS FOR HILLHAVEN NOW AT 3 1/16 UP 1/16 ON THE AMERICAN STOCK EXCHANGE YESTERDAY AS WELL AS TWO COMPANIES ON THE NEW YORK STOCK EXCHANGE MANOR CARE UP 1/8 TO 20 AND BEVERLY ENTERPRISES OFF 1/8 TO 9 5/8 THE NURSINGHOME GROUP IS EVEN MORE ATTRACTIVE BECAUSE THE SHARES HAVE TAKEN A BEATING ALONG WITH MOST OTHER HEALTHCARE STOCKS MR LOSS SAYS MORE REGULATION MIGHT EVEN HELP ONE OF THE WAYS HMOS TRY TO SAVE MONEY IS TO SHORTEN THEIR HOSPITAL STAYS AND DISCHARGE PEOPLE TO NURSING HOMES WHICH ARE CHEAPER MOREOVER SOME NURSING HOME COMPANIES ARE TRYING TO BOOST THEIR NARROW PROFIT MARGINS BY ADDING BUSINESSES SUCH AS PHARMACY AND REHABILITATION SERVICES AS INVESTORS EXPECTED THE DRAFT OF CLINTON'S PROPOSAL DIDN'T INCLUDE A LOT OF GOOD NEWS FOR HMO STOCKS THE PROVISION FOR PRICE CONTROLS IN PARTICULAR LOOKS ONEROUS FOR HMOS SAYS MR LOSS SINCE THEIR ABILITY TO INCREASE PREMIUMS WILL BE LIMITED BUT BECAUSE USE OF HMOS WILL ALMOST CERTAINLY RISE UNDER HEALTHCARE REFORM SOME INVESTORS ARE TRYING TO PICK OUT THE CREAM OF THE CROP ON THE THEORY THAT THESE HMOS WILL EVENTUALLY BENEFIT CALIFORNIA HMO GEORGE MICHAELIS A PORTFOLIO MANAGER WITH FIRST PACIFIC ADVISORS IN LOS ANGELES SAYS HE'S LOOKING INTO PACIFICARE HEALTH SYSTEMS' B SHARES AN HMO IN CALIFORNIA NOW AT 31 1/4 OFF 5/8 YESTERDAY HIS THEORY IS THAT CALIFORNIA WHERE HMOS HAVE HAD EXTENSIVE SCOPE AND SUCCESS IS A GOOD TEST MARKET FOR THE TYPE OF COMPANY THAT WILL SUCCEED UNDER HEALTHCARE REFORM IF THEY CAN OPERATE HERE THEY CAN OPERATE ANYWHERE HE SAYS THOUGH HE HASN'T YET BOUGHT THE STOCK HE SAYS IT'S WORTH LOOKING AT OTHER INVESTORS SAY THEY BELIEVE BIG MULTILINE INSURERS WILL BENEFIT THE MOST FROM REFORM THEY HAVE THE ABILITY TO BUILD MASS AND CUT COSTS SAYS MUTUAL SERIES' MR FRIEDMAN INVESTING IN HEALTHCARE STOCKS IS A TRICKY BUSINESS RIGHT NOW HOWEVER INVESTORS AGREE THE ONLY THING CERTAIN RIGHT NOW IS THAT THE CONCERNED INDUSTRIES WILL PULL OUT ALL THE STOPS IN THEIR EFFORTS TO LOBBY CONGRESS ON THE ISSUE ONE ANALYST JESTINGLY SUGGESTS BUYING NEWSPAPER STOCKS GIVEN THE BLIZZARD OF LOBBYING HE EXPECTS TO SEE IN ADVERTISEMENTS IT'S TOO EARLY TO START PLACING HEAVY BETS ON WHICH STOCKS WILL BE THE BIG WINNERS UNDER HEALTHCARE REFORM MR FRIEDMAN SAYS PEOPLE KNOW HOW LONG IT TAKES TO CHANGE SOMETHING AS VAST AS HEALTH CARE OF COURSE IF NO HEALTH PLAN GOES THROUGH THE SAME STOCKS THAT HAVE TAKEN A BEATING COULD BOUNCE BACK STRONGLY MOST HEALTHCARE STOCKS WOULD SPRING BACK TO LIFE PREDICTS MR LOSS BUT WHAT ABOUT BONDS MOST INVESTORS HAVE FOCUSED THEIR ATTENTION ON HOW A HEALTHCARE OVERHAUL WOULD AFFECT THE STOCK MARKET YET AT LEAST ONE SAVVY INVESTOR BELIEVES A HEALTHPLAN DEADLOCK COULD BE THE BIG EVENT INVESTORS ARE LOOKING FOR THAT WOULD END THE LONG RALLY IN THE BOND MARKET THIS PENSIONFUND MANAGER WHO ASKED TO REMAIN ANONYMOUS SAYS BOND INVESTORS ARE COUNTING ON A PUSH FROM HEALTHCARE REFORM TO REDUCE THE FEDERAL DEFICIT IF THAT DOESN'T HAPPEN HE SAYS LOOK OUT 9309140100 930914 INTERNATIONAL CREDIT LYONNAIS HEAD REPORTED TO FACE OUSTER BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT REPORTEDLY IS READY TO PUSH ASIDE THE HEAD OF STATEOWNED BANKING GROUP CREDIT LYONNAIS SA UNATTRIBUTED REPORTS IN THREE FRENCH NEWSPAPERS SAID YESTERDAY THAT CREDIT LYONNAIS'S CHAIRMAN JEANYVES HABERER HAS BEEN OFFERED A LESS PROMINENT JOB AS HEAD OF CREDIT NATIONAL A SMALLER STATECONTROLLED BANK BUT HE HASN'T YET GIVEN AN ANSWER CREDIT LYONNAIS OFFICIALS DECLINED TO COMMENT THE NEWSPAPERS SAID MR HABERER IS LIKELY TO BE SUCCEEDED AT CREDIT LYONNAIS BY JEAN PEYRELEVADE CHAIRMAN OF THE COUNTRY'S LARGEST INSURANCE COMPANY UNION DES ASSURANCES DE PARIS OR UAP MR PEYRELEVADE WHO HAS SAID HE WOULD RATHER STAY AT UAP ISSUED A BRIEF STATEMENT DENYING THE REPORTS THE NEWSPAPERS SAID THE MOVES ARE PART OF A WIDER RESHUFFLING OF TOP JOBS IN FRANCE'S HUGE STATECONTROLLED FINANCIAL SECTOR THE PRIME MINISTER'S OFFICE DECLINED TO DISCUSS THE REPORTS THOUGH IT SAID THEY WERE PREMATURE SUCH A REORGANIZATION IF IT HAPPENS WOULD ALLOW THE RECENTLY ELECTED GOVERNMENT EFFECTIVELY TO DEMOTE POLITICAL RIVALS AND PROMOTE ALLIES HIGHLIGHTING ONCE AGAIN THE CLOSE HOLD FRENCH POLITICIANS ENJOY OVER THE NATION'S STATEOWNED COMPANIES BUT THE EXERCISE COULD BE ONE OF THE LAST IN A LONG FRENCH TRADITION BECAUSE THIS TIME AROUND IT IS MOTIVATED MORE BY THE NEED TO PREPARE THE COMPANIES FOR PRIVATIZATION RATHER THAN BY A SPIRIT OF REVENGE OR NEPOTISM EARLIER THIS YEAR THE NEW GOVERNMENT SET IN PLACE NEW TOP EXECUTIVES TO PREPARE OIL GROUP SOCIETE NATIONALE ELF AQUITAINE AND CREDIT LYONNAIS'S MAIN FRENCH RIVAL BANQUE NATIONALE DE PARIS FOR SALE TO INVESTORS BUT MONEYLOSING CREDIT LYONNAIS WHICH HAS BEEN SNARED BY PROBLEM LOANS AND LEGAL TANGLES RECENTLY WASN'T CONSIDERED ATTRACTIVE ENOUGH TO INVESTORS TO ALLOW EARLY FLOTATION 9309140099 930914 DUPONT PLANS TO CUT 4500 JOBS IN US COMPETITION IN CHEMICALS NYLON IS CITED BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO CITING MOUNTING COMPETITION FOR ITS CHEMICALS AND NYLON BUSINESSES SAID IT WILL CUT 4500 US JOBS OR 36 OF ITS WORLDWIDE WORK FORCE BY MID1994 AND THAT IT PLANS TO PARE ITS EUROPEAN STAFF OVER THE NEXT YEAR THE NATION'S LARGEST CHEMICAL COMPANY SAID IT WILL TAKE A 375 MILLION OR 56 CENTS A SHARE CHARGE IN THE THIRD QUARTER TO COVER THE REDUCTION OF ITS DOMESTIC STAFF IT SAID THAT 3000 OF THE US EMPLOYEES BEING DISMISSED WILL BE OFF ITS BOOKS BY THE END OF NOVEMBER INVESTORS APPLAUDED DUPONT'S ANNOUNCED CUTS SENDING DUPONT SHARES 1625 HIGHER TO 4950 IN LATE NEW YORK STOCK EXCHANGE TRADING THE STAFF CUTS ARE THE LATEST ATTEMPT BY DUPONT TO REMAKE ITSELF INTO A LEAN MEAN COMPETITIVE MACHINE SAID PAUL LEMING AN ANALYST WITH KIDDER PEABODY & CO BUT HE AND OTHER ANALYSTS QUESTIONED WHETHER FIRING 4500 EMPLOYEES OUT OF NEARLY 125000 WORLDWIDE WILL PROVIDE MUCH OF A BOOST TO DUPONT'S BOTTOM LINE WHAT YOU'RE SEEING HERE IS WHAT PROCTER & GAMBLE AND ALL MAJOR COMPANIES ARE STARTING TO DO TO STAY IN THE BALLGAME AND REMAIN COMPETITIVE IT DOESN'T MEAN THEY'RE GETTING AHEAD OF THE NEXT GUY MR LEMING SAID IN JULY PROCTER & GAMBLE SAID IT WOULD CUT 13000 EMPLOYEES WITHIN FOUR YEARS OR 12 OF ITS WORK FORCE EVEN THOUGH ITS SALES AND PROFITS ARE RELATIVELY ROBUST DUPONT SAID THAT ITS CONOCO OIL DIVISION WASN'T AFFECTED BY THE LATEST CUTS INDEED THE 375 MILLION CHARGE WILL BE PARTLY OFFSET BY A THIRDQUARTER GAIN OF 235 MILLION OR 35 CENTS A SHARE FROM THE REDUCTION OF DEFERRED OIL TAXES IN THE UNITED KINGDOM BELTTIGHTENING IS NOTHING NEW AT DUPONT AS PART OF PREVIOUSLY ANNOUNCED RESTRUCTURING PROGRAMS DUPONT HAS CUT 10300 OF ITS OWN EMPLOYEES AND NEARLY 3000 CONTRACT WORKERS SINCE MID1991 BUT SLUGGISH ECONOMIES THROUGHOUT MUCH OF THE DEVELOPED WORLD AND A GLOBAL GLUT OF CHEMICALS AND PLASTICS CAPACITY HAVE KEPT A LID ON EARNINGS GAINS LAST YEAR DUPONT REPORTED OPERATING PROFIT OF 975 MILLION BEFORE NONRECURRING CHARGES COMPARED WITH OPERATING PROFIT OF 140 BILLION IN 1991 AND 231 BILLION IN 1990 AFTER ACCOUNTING AND OTHER CHARGES LAST YEAR DUPONT HAD A LOSS OF 393 BILLION OR 585 A SHARE IN 1992'S THIRD QUARTER DUPONT EARNED 420 MILLION OR 63 CENTS A SHARE DUPONT TRIMMED 1 BILLION FROM ITS ANNUAL COSTS BY ELIMINATING ABOUT 9000 JOBS IN 1991 AND 1992 THE COMPANY SAID THE CUTS ANNOUNCED YESTERDAY ARE PART OF AN ADDITIONAL 2 BILLION COSTCUTTING PLAN DISCLOSED IN MID1992 AND CONSTITUTE THE BULK OF THE STAFF REDUCTIONS THAT ARE PART OF THAT PLAN ABOUT 1300 EMPLOYEES WERE FIRED EARLIER THIS YEAR THE COMPANY DIDN'T SAY WHAT COST SAVINGS IT EXPECTED BY FIRING 4500 EMPLOYEES DUPONT INVENTED NYLON MORE THAN 50 YEARS AGO AND THE SYNTHETIC FIBER BUSINESS IS SHOWING ITS AGE DUPONT'S NYLON OPERATIONS IN THE US ACCOUNT FOR ABOUT 1600 OF THE 4500 WHO WILL SOON BE RECEIVING PINK SLIPS THE BALANCE OF THE CUTS WILL OCCUR IN ALMOST ALL OF THE COMPANY'S OTHER OPERATIONS EXCLUDING CONOCO NEARLY 200 CONTRACT EMPLOYEES ALSO WILL BE CUT IN THE NYLON AREA BY YEAR END THE COMPANY SAID THE PLANNED EUROPEAN REDUCTIONS ARE ALSO EXPECTED TO FALL HEAVILY ON THE NYLON OPERATIONS EARLIER THIS YEAR DUPONT BOUGHT THE EUROPEAN NYLON BUSINESS OF IMPERIAL CHEMICAL INDUSTRIES PLC BRITAIN'S LARGEST CHEMICAL PRODUCER TODAY'S STEP IS CRUCIAL IN STRENGTHENING DUPONT NYLON IN THE CURRENT MARKETPLACE AND POSITIONING OURSELVES FOR AGGRESSIVE GROWTH SAID JERRY BLUMBERG DUPONT SENIOR VICE PRSIDENT FOR NYLON DUPONT SAID IT WILL CUT ABOUT 700 OF ITS 1300 EMPLOYEES AT ITS NYLON PLANT IN MARTINSVILLE VA ANOTHER 175 EMPLOYEES WILL BE FIRED AT THE COMPANY'S SEAFORD DEL SITE THE WORLD'S FIRST NYLON PLANT INCLUDING NYLON EMPLOYEES DUPONT SAID IT WOULD BE CUTTING ABOUT 1000 JOBS IN ITS HOME STATE OF DELAWARE DUPONT SAID IT WOULD OFFER EMPLOYEES ONE MONTH'S SEVERANCE PAY FOR EVERY TWO YEARS OF EMPLOYMENT WITH A CAP OF ONE YEAR'S PAY IN TOTAL SEVERANCE COMPENSATION MEDICAL DENTAL AND LIFE INSURANCE BENEFITS WILL CONTINUE FOR ONE YEAR THE COMPANY SAID 9309140098 930914 TRANSCO TO RECORD GAIN HOUSTON TRANSCO ENERGY CO SAID IT WILL RECORD A THIRDQUARTER GAIN OF 31 MILLION OR 79 CENTS A SHARE ON ITS SALE OF TRANSCO ENERGY VENTURES CO TRANSCO SOLD ITS INDEPENDENT POWER PLANT CONSTRUCTION AND DEVELOPMENT UNIT TO A UNIT OF NATIONAL POWER PLC A BRITISH COMPANY FOR 150 MILLION IN LAST YEAR'S THIRD QUARTER TRANSCO EARNED 68 MILLION OR 1 CENT A SHARE ON 6517 MILLION IN REVENUE 9309140097 930914 REVIEW & OUTLOOK EDITORIAL HEALTH CARE CONTRAPTION AS WE PICK OUR WAY THROUGH THE RUBE GOLDBERGIAN PARTICULARS OF THE CLINTON HEALTH PLAN IT SHOULD AT LEAST TELL US SOMETHING ABOUT THAT PHILOSOPHICAL MISSING LINK THE NEW DEMOCRAT AND IT DOES WE BEGIN TO PREFER OLD DEMOCRATS AT LEAST WHEN THEY SET OUT TO ENACT VAST NEW BUREAUCRACIES TO ADMINISTER THEIR EXPENSIVE IMPULSES THEY ADMITTED WHAT THEY WERE DOING YOU COULD ALMOST HEAR THE JAWS DROPPING WHEN IRA MAGAZINER THE WHITE HOUSE'S GURU AT GURUING SAID OVER THE WEEKEND THE GOVERNMENT IS GOING TO SET STANDARDS GUARANTEE HIGHQUALITY AFFORDABLE CARE AND THEN GET OUT OF THE WAY AS ANY OF THE HEALTH CARE REFORMERS WHO USED TO GATHER AT JACKSON HOLE COULD TELL YOU A LOT OF WHAT'S ALREADY WRONG WITH THE MEDICAL ECONOMY ARISES FROM WASHINGTON'S HABIT OF CREATING ENTITLEMENTS WHILE TRYING TO CONCEAL FROM TAXPAYERS HOW MUCH THEY REALLY COST IN A NUTSHELL THOUGH THAT'S THE NEW DEMOCRAT PHILOSOPHY THE WHOLE CLINTON HEALTH CARE SCHEME ADVANCES BEHIND A PHALANX OF EUPHEMISM AIMED AT MUDDYING UP WHAT'S REALLY GOING ON HERE IT WOULD SPAWN HUGE NEW BUREAUCRACIES BUT THESE WILL TRAVEL UNDER THE ALIAS PURCHASING ALLIANCE PRICE CONTROLS ARE SUBSUMED UNDER THE MBAISHSOUNDING GLOBAL BUDGETS AND THE TAXES THAT WOULD FINANCE THE THING ARE CALLED PREMIUMS DEMOCRATS SIMPLY CAN'T SELL THIS SORT OF AGENDA IF THE PRICE TAG IS VISIBLE SO THEY HIDE IT AS REVEALED IN PRESS REPORTS THE PAST FEW DAYS THE CLINTON HEALTH CARE PROPOSAL SHOWS JUST HOW DIFFICULT IT IS FOR NEW DEMOCRATS TO FINESSE THE CONTRADICTIONS OF THE WELFARE STATE WE GOT A TASTE OF THIS LAST WEEK FROM AL GORE'S REINVENTING GOVERNMENT REPORT GOVERNMENT CAN'T RAISE TAXES AND SPEND MORE MONEY AND CREATE A PROGRAM FOR EVERY PROBLEM IT SAID NO NOW THE ANSWER IS TO USE THE FEDERAL GOVERNMENT'S IMMENSE POWER TO STEER WHAT HAPPENS IN THE PRIVATE SECTOR IN THIS EQUATION BUSINESS IS JUST A CIPHER AND THE REAL COST COMES OUT OF EVERYBODY'S POCKETS NOTHING NEW WELL MAYBE ONE THING THE ARROGANCE IS PRETTY UNPRECEDENTED IN ASSEMBLING THIS GIANT CONTRAPTION THE CLINTONS HAVE ASSIDUOUSLY AVOIDED CONSULTING ANYBODY WHO WOULD QUESTION THE HEALTH CARE PLAN'S PREMISES SPECIALISTS WHO EXPRESSED DISAGREEMENTS WITH THE PLAN WERE SIMPLY CUT OUT OF THE LOOP YES THERE IS A PROBLEM HEALTH CARE IS OVERPRICED BUT THAT'S LARGELY BECAUSE OF MEDICARE AND MEDICAID THE GOVERNMENT'S HEALTH CARE BUYERS HAVE GOTTEN INTO THE NASTY HABIT OF SETTING ARBITRARY LIMITS ON WHAT THEY'LL REIMBURSE KNOWING FULL WELL THAT HOSPITALS WILL SOAK PRIVATELY INSURED PATIENTS FOR THE EXTRA COSTS MEDICAID AND MEDICARE ACCOUNT FOR SOMETHING LIKE 41 OF ALL HEALTH SPENDING AND NO DOUBT THE LION'S SHARE OF THE UPWARD PRESSURE ON MEDICAL COSTS A PRUDENT FEDERAL INITIATIVE WOULD HAVE FIRST TRIED TO SOLVE THE PROBLEMS WITH THE PART OF THE HEALTH CARE SYSTEM THAT THE GOVERNMENT ACTUALLY RUNS SOME 150 MILLION WORKERS AND THEIR FAMILIES GET THEIR INSURANCE AT WORK AND THEIR EMPLOYERS ARE WAY AHEAD OF GOVERNMENT WHEN IT COMES TO MOVING THESE FOLKS INTO MANAGED CARE NETWORKS AND TEACHING THEM TO BE RESPONSIBLE CONSUMERS BY HITTING THEM WITH COPAYMENTS AND DEDUCTIBLES MYRIAD OTHER INITIATIVES HAVE BEEN REPORTED IN THE PAST SEVERAL YEARS SOME WILL FAIL TO BE SURE BUT CLEARLY THE SYSTEM WAS IN THE PROCESS OF HEALING ITSELF BEFORE BILL CLINTON BECAME PRESIDENT THE CLINTON PLAN WOULD STEP ON THESE FLOWERS JUST AS THEY'RE STARTING TO BLOOM THE EXISTING SYSTEM MAY LACK THE NEATNESS ON PAPER OF A UNIVERSAL ENTITLEMENT AND YET IT STILL SEEMS TO FIND WAYS TO ACCOMMODATE PEOPLE WHO LACK THE MEANS TO PAY IF ANYTHING INTERFERES WITH THE MEDICAL COMMUNITY'S WILLINGNESS TO CONTINUE PROVIDING CHARITY CARE FOR THOSE WHO FALL THROUGH THE INSURANCE SYSTEM'S CRACKS IT'S WASHINGTON'S POLICY OF TAKING CONTROL OF THEIR CHARITABLE RESOURCES AND USING THEM TO SUBSIDIZE THE RUNAWAY MEDICARE AND MEDICAID PROGRAMS IT'S ODD TO SEE PEOPLE CALLING THEMSELVES NEW DEMOCRATS WHO ARE SO OBVIOUSLY FAR BEHIND THE REST OF THE WORLD'S LEARNING CURVE IN SWEDEN GERMANY AND MOST OTHER SERIOUS PLACES THEY'RE PULLING UTURNS AND BEGINNING TO DISMANTLE THEIR EXPENSIVE WELFARE BUREAUCRACIES IT HAS DAWNED ON THEM THAT THEIR BEST BET FOR THE FUTURE LIES IN FINDING A WAY BACK TO THE DYNAMIC PRODUCTIVE ECONOMIES THAT CAN PROVIDE PEOPLE WITH THE MEANS AND INCENTIVE TO LOOK AFTER THEMSELVES WE DON'T DOUBT THE ADMINISTRATION'S SELFCONFIDENCE THEY SURELY BELIEVE THAT WHEN THE SCREAMING DIES DOWN THE AFFECTED PARTIES KNOW THEY'LL HAVE TO DO BUSINESS WITH THE PLANNERS THEY MAY BE RIGHT OUR SENSE THOUGH IS THAT MOST PEOPLE KNOW THIS PROPOSAL IS GOING TO BE MAINLY A LARGE WASTE OF EVERYONE'S POLITICAL AND INTELLECTUAL RESOURCES IN A RATIONAL POLITICAL WORLD A REFEREE WOULD CRY FAULT AND MAKE THEM GO BACK TO TRY AGAIN FOR NOW THE CLINTON'S CONTRAPTION IS ATTRACTING MYSTIFIED GLANCES 9309140096 930914 MARKETING BRIEF NOTED PUBLISHING NEW YORK TIMES CO SAID IT WILL INCREASE THE SUGGESTED NEWSSTAND PRICE OF ITS SUNDAY NEWSPAPER TO 2 FROM 150 IN THE GREATER NEW YORK METROPOLITAN AREA EFFECTIVE SEPT 26 THE PRICE INCREASE WILL NOT AFFECT WEEKDAY EDITIONS OR SUNDAY HOME DELIVERY THE PUBLISHING COMPANY SAID ABOUT 18 MILLION COPIES OF THE NEW YORK TIMES ARE SOLD ON SUNDAY OF THESE ABOUT 600000 COPIES ARE SOLD IN THE AREAS COVERED BY THE INCREASE 9309140095 930914 INTERNATIONAL TWO US STEEL FIRMS FILE APPEAL OF RULING IN BRAZILIMPORTS CASE CANTON OHIO TWO US STEELMAKERS FILED AN APPEAL OF THE INTERNATIONAL TRADE COMMISSION'S JULY 2 RULING THAT DOMESTIC MAKERS OF SPECIAL QUALITY FINISHED HOTROLLED STEEL BARS AREN'T HURT BY IMPORTS FROM BRAZIL THE APPEAL WAS FILED BY REPUBLIC ENGINEERED STEELS INC AND TIMKEN CO IN THE US COURT OF INTERNATIONAL TRADE IN NEW YORK WE FULLY EXPECT THE COURT TO DECIDE THAT THE ITC RULED INCORRECTLY THE COMPANIES SAID IN A NEWS RELEASE A REPUBLIC SPOKESMAN SAID THAT THE IMPORTED BRAZILIAN STEEL WAS SOLD IN THE US AT 27 BELOW FAIR MARKET PRICE AND ACCOUNTED FOR ABOUT 47 OF THE 46 MILLION TONS OF SPECIALTY BARS AND ROD CONSUMED BY THE US IN 1991 THE TWO COMPANIES NAMED IN THE ORIGINAL ANTIDUMPING PETITION ARE VILLARES INDUSTRIAS SA OF SAO PAULO AND ACO MINOS GERAIS SA OF OURO BRONCO IN THE STATE OF MINAS GERAIS A LAWYER FOR VILLARES SAID THE ITC RULING IS STRONG AND WELL FOUNDED A LAWYER FOR ACO MINOS COULDN'T BE REACHED FOR COMMENT 9309140094 930914 PIER 1 IMPORTS TO POST SLIGHTLY LOWER PROFIT FOR FISCAL 2ND QUARTER FORT WORTH TEXAS PIER 1 IMPORTS INC EXPECTS TO REPORT THAT FISCAL SECONDQUARTER EARNINGS FELL SLIGHTLY TO 73 MILLION OR 20 CENTS A SHARE FROM 74 MILLION OR 20 CENTS A SHARE A YEAR AGO CLARK A JOHNSON CHIEF EXECUTIVE OFFICER SAID THOSE EARNINGS SLIGHTLY ABOVE MOST ANALYSTS' ESTIMATES WERE DEPRESSED BY AN INCREASE IN THE COMPANY'S CORPORATE TAX RATE TO 29 IN THE QUARTER ENDED AUG 31 FROM 20 A YEAR AGO SAID MR JOHNSON ADDING THAT THE COMPANY'S PRETAX PROFIT FOR THE QUARTER WAS 11 HIGHER THAN LAST YEAR SALES FOR THE QUARTER ROSE 9 TO 1814 MILLION FROM 1664 MILLION WITH SALES IN STORES OPEN A YEAR OR MORE RISING 62 HE SAID IN AN INTERVIEW THE YEARAGO TAX RATE IN THE SECOND QUARTER RESULTED FROM AN ADJUSTMENT FOR THE FIRST SIX MONTHS TAKEN IN THAT QUARTER TO REFLECT TAX SAVINGS FROM A STRATEGY OF BUYING MERCHANDISE OFFSHORE ROBERT G HERNDON CHIEF FINANCIAL OFFICER SAID THE EFFECT OF THAT STRATEGY WAS INCLUDED IN TAX RATES FROM THE BEGINNING OF THIS FISCAL YEAR RESULTING IN NO SPECIAL SECONDQUARTER ADJUSTMENT MR JOHNSON SAID THAT WEAK FIRSTQUARTER SALES FOR THE SPRING AND SUMMER CLOTHING LINES FORCED THE SPECIALTY RETAIL CHAIN TO CONDUCT AGGRESSIVE CLEARANCE SALES IN THE SECOND QUARTER RESULTING IN THINNER GROSS PROFIT MARGINS HE ALSO SAID THE COMPANY'S LOWMARGIN FURNITURE BUSINESS ACCOUNTED FOR MORE OF THE SALES MIX THAN USUAL IN THE SECOND QUARTER 28 OF OVERALL SALES A 14 INCREASE FROM THE YEAREARLIER PERIOD MR JOHNSON SAID HE EXPECTS HIGHER GROSS MARGINS IN THE SECOND HALF OF THE YEAR HE SAID THE THINNER MARGINS WERE PARTIALLY OFFSET BY CUTS IN OPERATING COSTS MR JOHNSON SAID PIER 1 EXPECTS A STRONGER CHRISTMAS SEASON THAN LAST YEAR AND THAT THE COMPANY FEELS COMFORTABLE WITH PROJECTIONS OF 10 CENTS A SHARE IN EARNINGS FOR THE THIRD QUARTER AND EARNINGS FOR THE YEAR ENDING FEB 28 1994 OF BETWEEN 70 CENTS AND 72 CENTS A SHARE IN THE MIDRANGE OF ANALYSTS' ESTIMATES LAST YEAR PIER 1 REPORTED EARNINGS OF SIX CENTS A SHARE FOR THE THIRD QUARTER AND 62 CENTS A SHARE FOR THE YEAR 9309140093 930914 A BAJA GRINGA FOR NAFTA BY DOROTHEA M EILER THE NORTH AMERICAN FREE TRADE AGREEMENT IS A CAUSE THAT I NOT ONLY BELIEVE IN BUT THAT ALSO AFFECTS ME PERSONALLY I LIVE ALONG WITH THOUSANDS OF OTHER US CITIZENS A FEW MILES SOUTH OF THE BORDER IN BAJA CALIFORNIA BUT I REPEATEDLY CRINGE WITH EMBARRASSMENT AT THE TREATMENT OF MY FRIENDS IN MEXICO BY THE US GOVERNMENT ONCE AGAIN THE US IS ACTING AS IF WITH SUPERIOR KNOWLEDGE AND UTOPIAN PLANS FOR AMERICANS AND EVERYBODY ELSE IT CAN PLAY THE SAME POLITICS WITH MEXICO AS IT DOES AT HOME WHY DOES THE US HAVE TO LET THE CURRENT MEXICAN GOVERNMENT THE BEST GOVERNMENT THAT NATION HAS EVER HAD SWING IN THE WIND WHILE THE NIMBYS AND THE UNIONS PLAY THEIR LITTLE GAMES NORTH OF THE BORDER IT WILL TAKE MORE THAN THE REPRIMANDS OF US INTEREST GROUPS TO GET MEXICO TO DO MORE THAN IT IS ALREADY DOING TO CLEAN UP POLLUTION IT WILL TAKE MORE PROSPERITY AND MORE COOPERATION BETWEEN THE TWO COUNTRIES THOSE OF US WHO LIVE IN BAJA CALIFORNIA SEE ALL KINDS OF EFFORTS BEING MADE FOR EXAMPLE THOUSANDS OF DROUGHTRESISTANT TREES HAVE BEEN PLANTED IN TIJUANA AND THE GOVERNMENT HAS HAD A PROGRAM TO TEACH PEOPLE HOW TO KEEP THEM HEALTHY WITH A MINIMUM EXPENDITURE OF WATER WATER TREATMENT PLANTS ARE REQUIRED IN NEW HOUSING COMPLEXES ALONG THE COASTLINE AND WE HAVE SEEN A GREAT INCREASE IN THE ABILITY OF THE LOCAL GOVERNMENTS TO MANAGE TRASH PROGRAMS GAS COMPANIES IN BOTH CALIFORNIA AND TEXAS ARE EAGER TO SELL NATURAL GAS TO BAJA CALIFORNIA'S HUGE OIL BURNING POWER PLANT A FEW MILES SOUTH OF THE BORDER AND MEXICO IS EAGER TO CONVERT ALL IT NEEDS IS PERMISSION FROM US AUTHORITIES TO BUILD THE PIPELINES TO THE BORDER IN MY PART OF THE BORDER COMMUNITY THERE ARE GREAT EFFORTS BEING MADE TO CLEAN UP POLLUTION OF ALL KINDS AND THAT INCLUDES POLITICAL CORRUPTION MANY NORTEAMERICANOS ARE UNAWARE BECAUSE IT HAS HAPPENED QUIETLY AND PEACEFULLY THAT BAJA CALIFORNIA IS GOVERNED BY A POLITICAL PARTY IN OPPOSITION TO THE INSTITUTIONAL REVOLUTIONARY PARTY PRI MEXICO'S RULING PARTY IN BAJA CALIFORNIA THE NATIONAL ACTION PARTY PAN A FREE ENTERPRISE PARTY CONTROLS THE LEGISLATURE THE GOVERNOR AND MAYORS OF THREE OF THE FOUR CITIES IN THE STATE ARE PAN MEMBERS TWO OF THOSE CITIES TIJUANA AND MEXICALI ARE AMONG THE FOUR LARGEST CITIES IN MEXICO ALL OF US BAJA GRINGOS WHO LIVE IN THE THE AREA NOTICE HOW MUCH IMPROVEMENT THERE HAS BEEN IN ROADS POLICE AND OTHER ASPECTS OF THE INFRASTRUCTURE WE HAVE EVEN SEEN CORRUPT OFFICEHOLDERS DISMISSED THIS WOULD HAVE BEEN UNTHINKABLE FIVE YEARS AGO AND HAS CAUSED LONGTIME BAJA CALIFORNIA RESIDENTS TO SIMPLY SHAKE THEIR HEADS IN WONDER AT THE CHANGES WE ALSO WATCH IN AMAZEMENT THE IMPROVEMENTS IN THE MEXICAN STANDARD OF LIVING OF COURSE THE TERRIBLE SLUMS IN TIJUANA REMAIN BUT THERE ARE AN INCREASING NUMBER OF AREAS WITH MIDDLECLASS HOUSING LOTS FOR SALE ON CREDIT WITH PAVED STREETS AND UTILITIES AVAILABLE ARE BECOMING COMMONPLACE SIGHTS THEY STAND IN CONTRAST TO THE BELIEF THAT ALL MEXICANS ARE TRYING TO CROSS ILLEGALLY INTO THE US INDEED MANY ARE STAKING THEIR FUTURE ON THE GROWING PROSPERITY AND FREEDOM IN BAJA CALIFORNIA WAGES ARE ALREADY IMPROVING AROUND THE BORDER AREA AND WILL CONTINUE TO DO SO IF NAFTA GOES INTO EFFECT IN FACT ONLY RECENTLY WE IN BAJA CALIFORNIA READ OF A BINATIONAL ELECTRONIC COMPONENT PLANT THAT WAS CLOSING IN TIJUANA AND MOVING TO MAINLAND CHINA WHERE THE WAGES WERE LOWER AND WHERE THERE WERE NO UNIONS FURTHERMORE THOSE OF US WHO HAVE KNOWN BAJA CALIFORNIA FOR A LONG TIME REALIZE THAT THIS IS NO LONGER AN INEXPENSIVE PLACE TO LIVE WORKERS HERE SHOP IN THE US AND THEY WANT PAY THAT WILL MAKE IT POSSIBLE FOR THEM TO DO SO YET THE OPPONENTS OF NAFTA ARE UNAWARE OF THESE FACTS ONE DOES NOT LEARN THESE THINGS ON A ONEDAY CONGRESSIONAL JUNKET TO THE BORDER OR EVEN ACROSS IT FOR A FEW HOURS IN THAT LENGTH OF TIME YOU SEE WHAT YOU ARE LOOKING FOR AND IF IT'S PROBLEMS AND POVERTY YOU SEEK YOU CAN CERTAINLY STILL FIND THEM BUT IF THAT'S WHAT YOU'RE LOOKING FOR POVERTY CAN ALSO BE FOUND NORTH OF THE BORDER IT'S TIME FOR THE TUNNELVISIONED US ELITISTS TO REALIZE THAT NOT ALL BOUNTY FLOWS FROM NORTH OF THE BORDER THAT GOOD THINGS ARE HAPPENING SOUTH OF THE BORDER THAT ALSO ARE OF BENEFIT TO THE US NOBODY IS GOING TO STOP THE GROWTH OF MEXICO AND MEXICANS WILL CONTINUE TO FIGHT POLLUTION THERE BUT THEY WILL BE ABLE TO ACCOMPLISH MORE WITH FREE TRADE THAN THEY WILL BE ABLE TO DO WITHOUT WITH MORE COOPERATION AND MORE INTERCHANGE OF IDEAS AND COMMERCE MORE PEOPLE ON BOTH SIDES OF THE BORDER WILL BE ABLE TO WORK TOWARD IMPROVING CONDITIONS FOR EVERYONE MS EILER IS A RESIDENT OF BAJA CALIFORNIA AND THE AUTHOR OF BAJA GRINGOS BRISTOL 1993 9309140092 930914 BUSINESS BRIEFS ORION CAPITAL CORP ACQUIRED A 98 STAKE IN INTERCARGO CORP AN INSURANCE HOLDING COMPANY SPECIALIZING IN INTERNATIONAL TRADE AND TRANSPORTATION COVERAGES AND HAS AGREEMENTS THAT COULD BOOST ITS INVESTMENT TO ABOUT 20 MONSANTO CO'S GD SEARLE & CO UNIT COMPLETED THE SALE OF A CHEMICAL MANUFACTURING PLANT IN BELGIUM TO CONTI BPC TERMS WEREN'T DISCLOSED ACORN VENTURE CAPITAL CORP REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE 27 FULLSERVICE AUTOMOTIVE RETAIL CENTERS IN THE SOUTHEASTERN US RUBBERMAID INC SIGNED A LETTER OF INTENT TO ACQUIRE TOTER INC STATESVILLE NC A CLOSELY HELD MAKER OF WHEELED CARTS FOR AUTOMATED MUNICIPAL WASTE COLLECTION TERMS WEREN'T DISCLOSED FIFTH THIRD BANCORP'S MIDWEST PAYMENT SYSTEMS UNIT SIGNED A PACT TO PROVIDE AUTOMATED TELLER MACHINE SERVICES TO HAMBUCO FEDERAL CREDIT UNION OF HAMILTON OHIO TERMS WEREN'T DISCLOSED KRANZCO REALTY TRUST ACQUIRED THREE SHOPPING CENTERS IN PENNSYLVANIA FOR 185 MILLION FROM THREE PRIVATE PARTNERSHIPS UNITED BANKSHARES INC COMPLETED ITS 85 MILLION ACQUISITION OF CB&T FINANCIAL CORP'S WESTOVER BANK AND A BRANCH OF COMMUNITY BANK & TRUST 9309140091 930914 REVIEW & OUTLOOK EDITORIAL REVISED WORLD ORDER NATO HAS BEEN GROPING FOR DIRECTION SINCE THE END OF THE COLD WAR THE ALLIANCE HAS BEEN RELUCTANT TO EXTEND ITS HAND TO CENTRAL EUROPE AND BROADEN ITS MANDATE MOST WORRISOME AFTER TAKING THE INITIATIVE RECENTLY TO THREATEN AIR STRIKES IN BOSNIA NATO THEN TURNED THE FINAL SAY OVER TO THE UNITED NATIONS BUT SPEAKING FRIDAY IN BRUSSELS AT AN INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES CONFERENCE NATO SECRETARY GENERAL MANFRED WOERNER DEMONSTRATED THAT THE ORGANIZATION MAY BE REGAINING ITS MOMENTUM HIS ADDRESS GAVE A CLEAR PICTURE OF THE SECURITY PROBLEMS THE WEST FACES AND THE LESSONS TO BE LEARNED FROM THE YUGOSLAV CRISIS THOUGH HE WAS TOO TACTFUL TO SAY IT MR WOERNER'S LESSONS FROM THE YUGOSLAV CRISIS THE PERNICIOUS EFFECTS OF EMPTY THREATS THE LACK OF STRATEGIC OBJECTIVES REACTIONARY DIPLOMACY AND MISUSE OF PEACEKEEPING FORCES AMOUNT TO A RINGING INDICTMENT OF THE WAY THE UNITED NATIONS DOES BUSINESS THE CREDIBILITY OF UN NEGOTIATING EFFORTS IN BOSNIA WERE CONSISTENTLY UNDERCUT BY THE INCREDIBILITY OF THE UN'S THREAT TO USE FORCE WE ALSO GIVE MR WOERNER CREDIT FOR ALBEIT BELATEDLY OPENING NATO'S DOORS AT SOME FUTURE POINT TO NEW MEMBERS RUSSIAN PRESIDENT BORIS YELTSIN'S DECLARATION LAST MONTH THAT HE HAS ESSENTIALLY NO QUALMS ABOUT POLAND JOINING NATO REMOVED ONE OF THE LONGESTSTANDING OBSTACLES TO OPENING NATO MEMBERSHIP TO CENTRAL AND EASTERN EUROPEAN COUNTRIES IT SEEMS ONLY A MATTER OF TIME BEFORE THE NATO FAMILY GROWS NATO HAS UNDERSTANDABLY BEEN WARY OF MAKING SECURITY COMMITMENTS THAT COULD DILUTE ITS DECISIONMAKING ABILITY AND POTENTIALLY DRAW IT INTO REGIONAL CONFLICTS BUT AS THESE NATIONS ESTABLISH THEMSELVES AS STABLE DEMOCRACIES NATO WILL FIND IT EASIER TO INCLUDE THEM IN THE ALLIANCE THEN THERE IS THE WORLD VIEW EXPRESSED AT THE SAME CONFERENCE BY EUROPEAN COMMISSION PRESIDENT JACQUES DELORS HE PAID HOMAGE TO THE ENTIRE INTERNATIONAL COMMUNITY OF ACRONYMS AND WISHED THEM ALL MORE MONEY MR BOUTROSGHALI'S IMAGINATIVE PLANS FOR THE UN DESERVE SUBSTANTIAL ADDITIONAL RESOURCES MR DELORS SAID THE CONFERENCE ON SECURITY AND COOPERATION IN EUROPE CSCE AN INSTITUTIONAL CORPSE OSTENSIBLY PROMOTING PEACE AND STABILITY IN EASTERN EUROPE HAS MANY SHORTCOMINGS HE ACKNOWLEDGES HE NEVERTHELESS CALLS FOR A LARGER MORE UNIFIED BUDGET INCREASED STAFFING AND A PERMANENT RESERVE OF EXPERTS CAPABLE OF PARTICIPATING IN CSCE MISSIONS MR DELORS FEELS TOO SECURE WITH BUREAUCRACIES BUT NATO MUST BE PREPARED TO ACT WHICH REQUIRES A DEGREE OF CONSENSUS NO EASY TASK GIVEN THE DIVERGING VIEWS OF ITS MEMBERS THE FRENCH HAVE OPPOSED EXTENDING NATO EASTWARD AND ARE HEAVILY PROMOTING EUROPEAN DEFENSE ALTERNATIVES SUCH AS THE FORCELESS WESTERN EUROPEAN UNION GERMANY CONSIDERS EASTERN EUROPE AND THE US COMMITMENT IN EUROPE TO BE VITAL TO ITS SECURITY INTERESTS IF US SECRETARY OF DEFENSE LES ASPIN'S SPEECH SUNDAY AT THE SAME CONFERENCE IS ANY INDICATION THE US IS ENTERING THE ERA OF THE INCREDIBLY SHRINKING DEFENSE BUDGET SO MR WOERNER HAS HIS WORK CUT OUT FOR HIM AT LEAST HE'S OFFERING A COGENT VISION BASED ON A REALISTIC ASSESSMENT OF THE WORLD IN THESE TIMES THAT IS PROGRESS 9309140090 930914 WHO'S NEWS BROWN GROUP INC BROWN GROUP INC ST LOUIS MARY SYLVIA SIVERTS 33 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT PUBLIC AFFAIRS AT THIS SHOE AND SPECIALTY RETAILING CONCERN SHE WAS FORMERLY DIRECTOR PUBLIC RELATIONS 9309140089 930914 ECONOMY CLINTON MULLS REQUIRING MORE NOTICE OF LAYOFFS CURRENT PLANTCLOSING LAW HAS PROVEN TO BE FLOP GAO STUDY INDICATES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS WEIGHING A PLAN TO FORCE MORE COMPANIES TO GIVE WORKERS ADVANCE NOTICE BEFORE CLOSING PLANTS A DRAFT DOCUMENT OUTLINING THE PROPOSAL IS CIRCULATING AROUND CAPITOL HILL AS PART OF THE LABOR DEPARTMENT'S DISLOCATED WORKER PLAN WHICH PROPOSES TRANSFORMING THE UNEMPLOYMENTINSURANCE SYSTEM INTO A BROADER JOB TRAINING AND CAREER COUNSELING PROGRAM SINCE ITS ENACTMENT IN 1988 THE PLANTCLOSING LAW HAS BEEN A FLOP OFFICIALLY IT REQUIRES CORPORATIONS TO PROVIDE 60 DAYS NOTICE ANY TIME THEY FURLOUGH A THIRD OR MORE OF THE FULLTIME WORKERS AT ANY SITE OF AT LEAST 150 WORKERS OR IF THEY CUT 500 EMPLOYEES AT ANY FACILITY NOTICE ALSO IS REQUIRED FOR ANY PERMANENT PLANT CLOSURE THAT AFFECTS 50 WORKERS BUT WHOLE SECTORS OF CORPORATE AMERICA HAVE SHUTTERED PLANTS OVER THE PAST SEVERAL YEARS WITHOUT EVER TELLING WORKERS OF THEIR IMPENDING FATE IN A STUDY OF THE LAW THE GENERAL ACCOUNTING OFFICE EARLIER THIS YEAR SAID ABOUT HALF THE PLANT CLOSINGS WERE EXEMPT FROM THE LAW BECAUSE OF SIZE THE GAO SAID THAT OF THE REMAINING PLANTS ABOUT HALF DIDN'T PROVIDE ENOUGH NOTICE OR ANY AT ALL THE GAO SAID MUCH OF THE FAILURE STEMMED FROM COMPANIES' LACK OF KNOWLEDGE ABOUT THE PROVISIONS OF THE LAW AND NO GOVERNMENT ENTITY CURRENTLY HAS THE POWER TO ENFORCE THE LAW THE ADMINISTRATION'S PROPOSAL WOULD LOWER THE THRESHOLD REQUIRING EMPLOYEE NOTIFICATION BY ENDING THE ONETHIRD RULE UNDER THAT NEW PROPOSAL ANY COMPANY THAT LAYS OFF 50 WORKERS WOULD HAVE TO GIVE WORKERS ADVANCE NOTICE NO MATTER WHAT PORTION OF THE COMPANY'S WORK FORCE THAT NUMBER REPRESENTS BUT ADMINISTRATION OFFICIALS ALSO ARE OFFERING ALTERNATIVES FOR HOW TO AMEND THE LAW ONE OPTION WOULD BE TO END THE ONETHIRD REQUIREMENT AND CUT THE THRESHOLD TO 25 WORKERS AN OPTION THAT SEN HOWARD METZENBAUM D OHIO AND REP WILLIAM FORD D MICH HAVE EMBRACED ANOTHER OPTION WOULD KEEP THE ONETHIRD RULE AND REDUCE THE 500WORKER LIMIT A THIRD ALTERNATIVE WOULD BE TO REDUCE THE ONETHIRD LIMIT ACCORDING TO THE LABOR DEPARTMENT THERE WERE NEARLY 3900 PLANT CLOSINGS OF MORE THAN 50 WORKERS IN 1991 THE ADMINISTRATION PLAN DOESN'T ADDRESS THE COMPLIANCE ISSUE CURRENTLY WORKERS WHO HAVE LOST THEIR JOBS WITHOUT APPROPRIATE NOTIFICATION CAN FILE LAWSUITS DEMOCRATS SAID THAT WHILE A BROADER PLANTCLOSING LAW WOULD HELP COMPLIANCE IS THE BIGGER PROBLEM THE ADMINISTRATION'S PLAN WOULD MOVE VERY SUBSTANTIALLY TO FIX THE PROBLEM SAID SEN METZENBAUM BUT WE NEED TO PROVIDE THE DEPARTMENT OF LABOR WITH ENFORCEMENT POWER ON CAPITOL HILL REPUBLICANS CAUTIONED THAT REOPENING THE PLANTCLOSING ISSUE WHICH PROVED CONTENTIOUS WHEN IT FIRST AROSE IN CONGRESS COULD HURT THE ADMINISTRATION'S CHANCES TO PUSH THROUGH ITS DISLOCATEDWORKER PROGRAM WHICH REPUBLICANS WOULD LIKE TO SUPPORT LOWERING THE THRESHOLD DOESN'T PREVENT WORKERS FROM BEING LAID OFF SAID SEN NANCY KASSEBAUM OF KANSAS THE RANKING REPUBLICAN ON THE LABOR COMMITTEE ON THE CONTRARY THIS EXPANDED WORKPLACE REGULATION COULD END UP BEING YET ANOTHER REASON FOR EMPLOYERS TO MOVE TOWARD PARTTIME AND CONTRACT WORKERS DOUG ROSS ASSISTANT SECRETARY FOR EMPLOYMENT AND TRAINING AT THE LABOR DEPARTMENT SAID THE AGENCY WILL REVIEW COMMENTS ABOUT ITS DRAFT PROPOSAL AND DECIDE NEXT MONTH WHETHER TO PROPOSE CHANGES TO THE PLANTCLOSING LAW THE QUESTION IS HOW DO WE DO A BETTER JOB OF KNOWING WHEN SIGNIFICANT GROUPS OF WORKERS ARE ABOUT TO BE LAID OFF MR ROSS SAID HE SAID STUDIES SHOW THAT WHEN THE GOVERNMENT IS ABLE TO REACH LAIDOFF WORKERS EARLIER THEY FIND NEW JOBS FASTER 9309140088 930914 TECHNOLOGY & HEALTH COMPAQ SAYS COMPUTER MARKET IN NORTH AMERICA FACES SLOWDOWN BY KYLE POPE AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP CONFIRMING WHAT MANY ANALYSTS HAVE SUSPECTED FOR MONTHS SAID IT EXPECTS GROWTH IN THE NORTH AMERICAN COMPUTER MARKET TO BE RELATIVELY FLAT IN THE SECOND HALF AFTER NEARLY A YEAR OF RECORD GROWTH BUT THE COMPANY EMPHASIZED THAT ITS OWN GROWTH WASN'T SLOWING INDICATING FURTHER MARKETSHARE GAINS FOR THE REBOUNDING PC MAKER COMPAQ SAID NORTH AMERICAN PC SALES WHICH GREW 40 DURING THE FIRST SIX MONTHS ARE EXPECTED TO FINISH THE YEAR UP ONLY ABOUT 15 COMPAQ THE ONLY MAJOR COMPUTER MANUFACTURER TO REPORT A PROFIT FOR THE SECOND QUARTER NOTED THAT THE EXPECTED DECLINE IN THE GROWTH RATE IS IN THE CONTEXT OF LAST YEAR WHEN PC SALES BOOMED IN RESPONSE TO PLUNGING PRICES WHAT WE'RE GOING TO DO IS CATCH UP FOR THAT EXPLOSIVE GROWTH SAID ROSS COOLEY THE COMPANY'S SENIOR VICE PRESIDENT OF NORTH AMERICA IT'S GOING TO BE MUCH HARDER TO GROW THE US MARKET IN THE LAST PART OF THE YEAR NEVERTHELESS MR COOLEY SAID COMPAQ EXPECTS TO END THE YEAR WITH SALES OF BETWEEN 6 BILLION AND 7 BILLION COMPARED WITH 41 BILLION LAST YEAR DURING THIS YEAR'S FIRST HALF COMPAQ'S PC SHIPMENTS HAVE MORE THAN TRIPLED COMPAQ'S PROJECTION WHICH CAME DURING THE FIRST DAY OF A THREEDAY COMPANY TRADE SHOW IN HOUSTON CAPPED A HECTIC DAY OF NEWS FOR THE COMPUTER GIANT IN ADDITION TO ITS MARKET PROJECTIONS THE COMPANY ALSO UNVEILED A SPATE OF NEW PRODUCTS INCLUDING A NOTEBOOK COMPUTER THAT RECOGNIZES HANDWRITTEN COMMANDS AND A FAMILY OF HIGHEND PC SERVERS AND COMPAQ SAID IT HAS WRITTEN A LETTER TO JAPAN'S TRADE MINISTRY TO PROTEST THE AWARDING OF A MAJOR GOVERNMENT COMPUTER CONTRACT THERE TO A JAPANESE RIVAL STILL IT IS COMPAQ'S MARKET PROJECTIONS THAT LIKELY WILL DRAW THE MOST ATTENTION IN HOUSTON THOUGH MANY MARKET WATCHERS HAVE BEEN WARNING THAT THE US MARKET IS DUE TO COOL OFF AFTER AN OVERHEATED YEAR COMPAQ IS THE FIRST MAJOR VENDOR TO PUBLICLY QUANTIFY ITS PROJECTIONS FOR THE END OF THE YEAR THE COMPANY SAID THE TEPID US MARKET WILL BE OFFSET IN PART BY A BOOMING BUSINESS IN THE PACIFIC RIM WHERE INDUSTRY PC SHIPMENTS ARE EXPECTED TO GROW 185 COMPAQ MEANTIME PREDICTED 23 UNIT GROWTH IN LATIN AMERICA AND 7 GROWTH IN EUROPE IN THE THIRD QUARTER COMPAQ PREDICTED THAT PC SHIPMENTS IN JAPAN WILL JUMP 6 THIS YEAR COMPARED WITH 1992 IN TOKYO COMPAQ DENOUNCED THE JAPANESE GOVERNMENT'S DECISION TO AWARD A RECENT CONTRACT FOR PERSONAL COMPUTERS TO NEC CORP SAYING THE PROCUREMENT FOLLOWED RULES THAT DISCRIMINATE AGAINST FOREIGN VENDORS IN A LETTER SENT EARLIER THIS MONTH TO THE TOP BUREAUCRAT AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY COMPAQ CHIEF EXECUTIVE OFFICER ECKHARD PFEIFFER COMPLAINED THAT IN THE RECENT PROCUREMENT MITI FOCUSED ONLY ON THE PRICE OF THE PCS IGNORING ISSUES SUCH AS SYSTEM PERFORMANCE THAT MIGHT HAVE FAVORED COMPAQ COMPAQ'S NEW SERVER LINE IS AIMED AT CEMENTING THE COMPANY'S LEAD IN A MARKET IT ALREADY DOMINATES THE MACHINES WHICH COORDINATE THE WORK OF DOZENS OF PCS LINKED INTO A NETWORK HAVE FOR YEARS BEEN A QUIET FORCE AT COMPAQ ACCOUNTING FOR A QUARTER OF THE COMPANY'S REVENUE LAST YEAR AND ONETHIRD OF ITS PROFITABILITY COMPAQ'S NEW PROLIANT SERVERS PRICED FROM 6000 TO 14000 WILL TAKE AIM AT MAKERS OF MINICOMPUTERS LIKE INTERNATIONAL BUSINESS MACHINES CORP AS WELL AS OTHER SERVER VENDORS LIKE DELL COMPUTER CORP AND AST RESEARCH INC THE NEW SERVER FAMILY CAN HANDLE 360 COMPUTING TRANSACTIONS A SECOND AND IS EQUIPPED WITH A NEW BATCH OF SOFTWARE AIMED AT MAKING THE MACHINES EASIER TO USE MEANWHILE COMPAQ'S NEW NOTEBOOK MACHINE THE CONCERTO FEATURES A DETACHABLE KEYBOARD THAT CAN DOUBLE AS A PEN WRITING PAD THE CONCERTO PRICED FROM 2499 IS USABLE EITHER AS A PEN MACHINE OR AS A CONVENTIONAL NOTEBOOK PC 9309140087 930914 FOREIGN COMPANIES BORROW IN CHEAP HUNGRY US MARKETS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOREIGN COMPANIES ARE PILING INTO US DEBT MARKETS TO BORROW FUNDS THEY WOULD HAVE TROUBLE RAISING AT HOME OR IN THE OFFSHORE LONDONBASED MARKETS THEY ARE ATTRACTED BY LOW US INTEREST RATES AND THE FACT THAT AMERICAN MONEY MANAGERS ARE GROPING FOR HIGHER RETURNS AND MORE DIVERSIFIED PORTFOLIOS AS INTEREST RATES DECLINE PEOPLE ARE SCRAMBLING TO REPLACE YIELDS WHEREVER THEY CAN SAYS JOHN E CARTLAND A VICE PRESIDENT AT TRAVELERS ASSET MANAGEMENT INTERNATIONAL CORP IN HARTFORD CONN THERE HAS BEEN AN ENORMOUS AMOUNT OF MONEY GOING INTO BONDS AND BOND FUNDS THIS MONEY HAS TO BE INVESTED AND THERE'S A SCARCITY OF PRODUCT THE UPSHOT SAYS R EDWARD CHAMBLISS A MANAGING DIRECTOR AT SBCI THE NEW YORK INVESTMENT BANKING UNIT OF SWISS BANK CORP IS THAT US INVESTORS WILL HAVE AN OPPORTUNITY TO BUY THE BONDS OF CORPORATIONS THAT HAVEN'T ISSUED DEBT IN THE US BEFORE AND IN LONGERTERM MATURITIES THAN THEY HAVE BEEN ABLE TO GET A PRIME EXAMPLE HE AND OTHERS SAY IS TRIPLEBRATED PHILIPS ELECTRONICS NV'S RECENT 500 MILLION OFFERING OF SOCALLED YANKEE BONDS WHICH ARE FOREIGN COMPANIES' DEBT SOLD IN THE US IN A TWOPART UNDERWRITING LED BY GOLDMAN SACHS & CO THE BIG DUTCH CONSUMER ELECTRONICS COMPANY SOLD 250 MILLION IN 10YEAR NOTES AND 250 MILLION IN 20YEAR BONDS BECAUSE PHILIPS HAS A LOW CREDIT RATING ALTHOUGH STILL INVESTMENT GRADE FROM STANDARD & POORS AND WAS ABLE TO BORROW LARGE SUMS AT LONG MATURITIES IN A PUBLIC BOND OFFERING MR CHAMBLISS CALLS THE ISSUE A WATERSHED DEAL OTHER PUBLIC YANKEE DEALS INVESTMENT BANKERS POINT TO INCLUDE ONES BY BRITISH OIL COMPANY LASMO PLC AND SWEDISH BALLBEARING MAKER SKF AB BOTH LEADMANAGED BY MERRILL LYNCH & CO AND A TWOPART 125 BILLION ISSUE BY HANSON PLC THAT HAD FIRST BOSTON CO AS ITS LEAD UNDERWRITER US CAPITAL MARKETS THE WORLD'S LARGEST OFFER FOREIGN COMPANIES ESPECIALLY EUROPEAN CONCERNS A CHANCE TO DIVERSIFY THEIR FUNDING SOURCES AND BORROW AT LONGER MATURITIES THAN THOSE USUALLY AVAILABLE IN EITHER THE EUROMARKET OR THEIR HOME MARKETS ONE REASON SAYS MR CHAMBLISS IS BECAUSE THE US HAS THE LEADING PENSION SYSTEM IN THE WORLD INVESTORS WITH THE ABILITY AND NEED TO MAKE LONGERTERM DECISIONS THAT NO OTHER MARKETPLACE HAS BY CONTRAST ROUGHLY 95 OF ALL EUROBONDS MATURE IN 10 YEARS OR LESS ACCORDING TO SECURITIES DATA CO AND THE SMALL INTERNATIONAL DEBT MARKETS THAT DO EXIST BEYOND 10 YEARS ARE HIGHLY RESTRICTED ONES LARGELY LIMITED TO GOVERNMENTS INTERNATIONAL AGENCIES LIKE THE WORLD BANK GOVERNMENTBACKED CORPORATIONS SELECT INTERNATIONAL BANKS AND BRITISH COMPANIES BORROWING IN THEIR OWN CURRENCY IN ADDITION MANY EUROPEAN COMPANIES INCLUDING PHILIPS HAVE TRADITIONALLY RELIED ON BANK BORROWING FOR MOST OF THEIR FUNDING BUT BECAUSE OF BANKS' BAD LOAN PROBLEMS AND NEW INTERNATIONAL CAPITALADEQUACY STANDARDS THAT MAKE IT PROHIBITIVELY EXPENSIVE TO LEND TO PRIVATE COMPANIES BANK BORROWING CAN'T BE TAKEN FOR GRANTED THE WAY IT USED TO BE IN TERMS OF PRICE MATURITY AND AVAILABILITY SAYS MR CHAMBLISS DURING THE FIRST HALF OF THIS YEAR 825 OF THOSE DOLLARDENOMINATED EUROBONDS THAT WERE RATED WERE DOUBLEA OR ABOVE ACCORDING TO SALOMON BROTHERS INC A HUGE 969 WERE SINGLEA OR HIGHER AMERICAN INSTITUTIONAL INVESTORS ARE ALSO AMONG THE WORLD'S MOST SOPHISTICATED THE US HAS A WELLDEVELOPED PRIVATE PLACEMENT MARKET WHERE THERE IS A LONGSTANDING WELLDEVELOPED CAPACITY TO DO COMPLICATED CREDIT ANALYSIS SAYS JAMES LEIGHPEMBERTON A DIRECTOR SG WARBURG & CO IN LONDON EVEN MORE IMPORTANT THE CURRENT LOWINTEREST RATE ENVIRONMENT IS LURING US PORTFOLIO MANAGERS TO INVESTMENTS THAT REWARD THEM WITH HIGHER YIELDS FOR INSTANCE PHILIPS'S 10YEAR NOTES SOLD AT A SPREAD OF 11 PERCENTAGE POINTS ABOVE COMPARABLE TREASURYS AND ITS 20YEAR BONDS AT A SPREAD OF 105 POINTS REWARDING INVESTORS WITH EVEN HIGHER YIELDS THAN COMPARABLY RATED US CORPORATE BONDS JON WINKELRIED A GOLDMAN SACHS PARTNER IN NEW YORK FIGURES THAT 10YEAR BONDS OF A SIMILAR TRIPLEB US COMPANY WOULD TRADE AT 080 TO 085 POINT OVER 10YEAR TREASURYS THE DEMAND FOR MORE YIELD IS CREATING A WINDOW OF OPPORTUNITY FOR FOREIGN COMPANIES TO LOCK IN LOWCOST MONEY FOR A LONG TIME 20 OR 30 YEARS SAYS MICHAEL GRAY A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON A FUND HE MANAGES OWNS SOME OF THE PHILIPS 10YEAR ISSUE BUYING SPREAD IS ONE OF THE MOST EFFICIENT WAYS OF CREATING PERFORMANCE IN FIXEDINCOME PORTFOLIOS EXPLAINS MR LEIGHPEMBERTON OF SG WARBURG HE POINTS OUT THAT WITH 10YEAR US TREASURY NOTES CURRENTLY YIELDING ABOUT 525 A SPREAD OF 15 PERCENTAGE POINTS WOULD REPRESENT MORE THAN 20 OF A SECURITY'S TOTAL RETURN BUT HE ADDS IF YOU ARE IN AN ENVIRONMENT WHERE TREASURY YIELDS ARE AT 10 AND YOU BUY SOMETHING WITH A SPREAD OF 15 POINTS THE IMPORTANCE OF SPREAD DROPS DRAMATICALLY ALONG WITH HIGHER RETURNS YANKEE BONDS ALSO OFFER US INVESTORS DIVERSITY MR CHAMBLISS OF SBC NOTES THAT PENSION FUNDS AND INSURANCE COMPANIES HAVE MORE MONEY UNDER MANAGEMENT THAN THEY CAN COMFORTABLY PLACE IN THE US AND THAT CONSULTANTS ARE HAMMERING PENSION FUNDS TO DIVERSIFY ACROSS BORDERS ONE REASON IS BECAUSE IN THE PAST THEY HAVE LOST BIG FROM BEING TOO HEAVILY EXPOSED TO ONE INDUSTRY PARTICULARLY REAL ESTATE AMERICANS CAN BUY EUROBONDS BUT NOT UNTIL 40 DAYS AFTER THEY HAVE BEEN ISSUED AND THAT CUTS DOWN ON AVAILABILITY WHEN THESE THINGS COME OUT IN EUROPE THEY'RE BOUGHT AND THEY'RE STASHED SAYS MR CARTLAND OF TRAVELERS THERE ISN'T A LARGE SECONDARY MARKET FOR BONDS IN EUROPE SOME MONEY MANAGERS FEEL US FUND MANAGERS HAVE NO CHOICE BUT TO EXPAND THEIR GLOBAL HORIZONS TO MAINTAIN A COMPETITIVE EDGE SUCCESSFUL MONEY MANAGERS BY THE YEAR 2000 WILL HAVE TO HAVE DEVELOPED CAPABILITIES AROUND THE WORLD SAYS JOHN HAGUE A MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT CO IN NEWPORT BEACH CALIF SIMPLY TO BE A US MONEY MANAGER WILL NOT BE ENOUGH NOTING THAT HIS FIRM HAS BEEN BUILDING ITS INTERNATIONAL INVESTMENT CAPABILITIES FOR FIVE TO SIX YEARS HE SAYS THAT PIMCO HAS MOSTLY INVESTED IN MAJOR FOREIGN GOVERNMENT BOND MARKETS AND ALSO PURCHASED SOME SINGLEANDDOUBLEA RATED CANADIAN AND JAPANESE CORPORATE BONDS MR HAGUE AND OTHERS WORRY THAT IN THEIR SCRAMBLE FOR HIGHER YIELDS MANY INVESTORS MAY BE BUYING FOREIGN SECURITIES WITHOUT FULLY UNDERSTANDING THEIR RISKS SOME TRADITIONAL US INVESTORS WILL RUN INTO PROBLEMS AS THEY EXPAND AROUND THE WORLD THERE WILL BE MISTAKES THAT PLAGUE PEOPLE WHO HAVE GRABBED YIELDS HE WARNS 9309140086 930914 LEISURE & ARTS BREW YOUR OWN BEER BEACHSIDE BY TIM W FERGUSON HERMOSA BEACH CALIF MY TOWN MAY BE ON THE MAP AGAIN IN THE EARLY DAYS OF METRO LOS ANGELES BEFORE THERE WAS AN LAX AIRPORT TO BE EIGHT MILES SOUTH OF THIS WAS A SUMMER OCEAN GETAWAY FOR THE WEEBIT SUCCESSFUL OZZIE AND HARRIET LITERALLY HAD A PLACE HERE AND THEIR BOYS TRACKED IN SAND SINCE THEN THE SUBURB HAS SETTLED FOR BEING A CONTENTED IF SOMETIMES QUARRELSOME MIX OF BOHEMIANS SURFERS BOOMERS AND THOSE WHO'VE RETIRED ON THE EQUITY IN THEIR HOMES BEER IS CHANGING THIS HERMOSA HAS A YOUNG CITY COUNCILMAN WHO SINGS THE NATIONAL ANTHEM AND OTHERWISE IS A MAINSTAY AT AN ANNUAL JULY 4 EVENT CALLED THE IRONMAN PARTICIPANTS RACE ALONG THE BEACH RACE PADDLING SURFBOARDS BACK AND THEN RACE TO POUR A SIXPACK DOWN THEIR GULLETS YOU CAN LOOK THIS UP IN THE 1994 ALMANAC OF AMERICAN POLITICS PAGE 175 THEY OFTEN LOSE THEIR PANCAKE BREAKFASTS IN THE LAST LEG OF THE CONTEST AND THIS HAS BECOME ALTOGETHER TOO MUCH FOR MANY OF THE RETIREES AND OTHER TEMPERATE CITIZENS WHO STILL WANT VENGEANCE FOR THIS YEAR'S DEBAUCHERY IN THIS TENDINGTODRY CLIMATE HOWEVER ANOTHER EXERCISE IN ALE IS UPON US THE HAMILTONGREGG BREWWORKS IS AMERICA'S FIRST COMMERCIAL VENUE FOR MAKING YOUR OWN BEER ITS NUMEROUS CANADIAN FORERUNNERS WERE RECENTLY PROFILED ON THE JOURNAL'S FRONT PAGE THE CONCEPT IS AIMED AT IMBIBERS WHO WANT PERHAPS A BIT MORE TASTE AND A SLOWER INTAKE THAN THE IRONMAN ENTRANTS I THOUGHT SURE I'M READY TO MOVE UP BREWWORKS IS AS PLEASANT AS A DAY AT THE BEACH WHICH HAPPENS TO BE ONLY ABOUT 50 STEPS AWAY THE 1480SQUAREFOOT QUARTERS USED TO BE THE GAS UTILITY'S LOCAL OFFICE BACK WHEN PEOPLE IN NICE AREAS PAID THEIR BILLS IN PERSON THE SITE APPEALED TO THE VENTURE'S THREE OWNERS BECAUSE IT OFFERED VISIBILITY TO THE BRISK WALKBY TRAFFIC IN SUMMER AND BECAUSE WELL THEY LIKE LIVING HERE TOO ONE OF THEM PATRICIA SPIRITUS CAME WEST FROM NEW JERSEY TO WORK AT MATTEL TOYS UP THE ROAD IN ROUNDABOUT FASHION SHE MET JOHN HAMILTON SCUDDER A GRANDSON OF LAURA SCUDDER THE POTATOCHIP QUEEN AND THE MONEY BEHIND BREWWORKS AND ANTHONY GREGG A STRAPPING CANADIAN WHO PATRONIZED THE UBREWS IN TORONTO AND THOUGHT THE EXPERIENCE NEEDED A SOUTHERN EXPOSURE MS SPIRITUS IS THE CIVIC INTERFACE OF THE TRIO ACTIVE IN THE CHAMBER OF COMMERCE THIS IS IMPORTANT IN A TOWN WHERE BICKERING CAN BLOCK ANYTHING OUT OF THE ORDINARY SHE AND THE CHAMBER RECENTLY STAGED A PICKET IN FAVOR OF CONTINUED FILMING HERE OF BEVERLY HILLS 90210 WHICH SOME STUFFED TSHIRTS WANT STOPPED BECAUSE IT IS A DISTRACTION ALONG THE BEACHFRONT AFTER MUCH TIME AND EXPENSE BREWWORKS MANAGED TO GET ACROSS TO THE AUTHORITIES JUST WHAT IT WAS AND WASN'T THE LOCALS AND STATE AND FEDERAL LIQUOR REGULATORS HAVE BEEN MORE OR LESS CONVINCED THAT THIS IS A SERVICE BUSINESS THAT ASSISTS CUSTOMERS IN THEIR PERSONAL BREWING IT IS THEREFORE NOT A MANUFACTURER OR A BAR INFORMAL TASTINGS OCCUR BUT YOU CANNOT GO IN THE BREWWORKS AND EXPECT TO ENJOY A BEER THE OWNERS FLUMMOXED THE CITY PLANNERS BY INSTALLING A SHUFFLEBOARD TABLE FOR CLIENTS WAITING FOR THE WATCHED POTS TO BOIL THERE ISN'T ROOM FOR DARTS BUT OTHERWISE THIS JOINT IS ALL FUNCTION THE PROCESS BEGINS WITH A PERUSAL OF THE TWO DOZEN OR MORE TYPES OF BREW FOR WHICH RECIPES HAVE BEEN PREPARED IN CONSULTATION WITH A MASTER BREWER FROM CANADA WHO OVERSAW SETUP OF THE SHOP THEY ARE A RANGE OF NORTH AMERICAN AND EUROPEAN LAGERS ALES AND PORTERS THAT HAVE BEEN SORT OF REVERSEENGINEERED FROM IDENTIFIABLE COMMERCIAL BRANDS THE QUICKEST TO MAKE ARE THE REPLICATIONS OF WHAT THE BIG DOMESTIC BREWERS PUT OUT SADLY ABOUT A QUARTER OF THE REQUESTS AT BREWWORKS HAVE BEEN FOR THIS STUFF BY INVESTING TWICE THE TIME TWO HOURS OR SO AT THE BREWING END AND A BIT MORE MONEY ONE CAN GET A CZECHLIKE PILSNER OR AN ENGLISH BITTER OR EVEN SOME 9 ALCOHOL BARLEY WINE WHICH IS WHAT MALT LIQUOR WOULD BE LIKE IF IT HAD ANY CLASS ALWAYS OF A POLITICAL MIND I CHOSE THE LIBERTY LAGER A SAMUEL ADAMS DERIVATIVE THIS I LEARNED MAY BE THE MOST POPULAR SELECTION WHICH IS NOT SURPRISING BECAUSE THERE ARE A LOT OF US REVOLUTIONARY REPUBLICANS IN THE AREA IT IS COSTING ME 95 FOR 48 BIG 22OUNCE CONTAINERS OF THE STUFF FIRST TIMERS PAY 30 EXTRA FOR THE BOTTLES WHICH BREWWORKS STERILIZES BETWEEN USES THIS WORKS OUT TO A BIT LESS THAN IMPORTED OR MICROBREWERY FARE AT THE MARKET AND I'M GUARANTEED FRESHNESS SALES TAX IS CHARGED BUT NO ALCOHOL LEVY IN CALIFORNIA THIS SAVES LESS THAN 7 ON THE WHOLE ORDER NOT THE KIND OF DIFFERENCE THAT DRIVES SALES OF THE CANADIAN UBREWS BUT STILL A MINOR VICTORY OVER THE STATE HAVING MADE MY PICK I PROCEED TO THE BREWING ROOM WHICH WITH INDIVIDUAL KETTLES AND COMMON COUNTERTOP CAN ACCOMMODATE AS MANY AS SIX BREWERS AT ONCE YOU MAY BRING A HELPER AS THIS IS AFTER ALL A SOCIAL ACTIVITY A BREWWORKS STAFFER WALKS THE INITIATE THROUGH EACH STEP A LABORIOUS EDUCATIONAL PROCESS THAT IT IS HOPED WILL NOT BE NECESSARY WITH REPEAT CUSTOMERS HOWEVER EVEN THE FIRST TIMER IS EXPECTED TO PERFORM ALL THE SIMPLE FUNCTIONS HIMSELF WHICH ACTUALLY SLOWS THE PROCESS DOWN BUT IS VITAL FOR THE SAKE OF BOTH PRIDE EXPERIENCE AND MEMORY ADD TO TASTE CONFIDES MS SPIRITUS AND LEGALITY HE WHO ADDS THE YEAST IS BY LAW THE BREWER I HAVE DRAWN BRIAN WRIGHT A 22YEAROLD QUAD CITIES ILL PRODUCT AS MY BREW GUIDE A LINK TO ONE OF THE OWNERS HAS LED HIM OUT OF THE FLOODED MIDWEST TO BE AS YET THE COMPANY'S ONLY EMPLOYEE AFTER BUSINESS PICKS UP OTHER PERSONABLE SORTS WILL BE NEEDED WHO HAVE A KNACK FOR THE ENTERPRISE A MODEST SALARY EXPECTATION AND THE ABILITY TO SPEAK WITHOUT ENDING EVERY SENTENCE IN DUDE JUST YET ACCORDING TO MR GREGG APPLICANTS HAVE LEFT PRETTY QUICK WHEN THEY LEARN THERE'S NO ROUTINE TIPPING OR TIPPLING BUT HE'S HOPEFUL MR WRIGHT EXPLAINS THE ALREADYWELLLABELED STEPS TO ME TWICE WHICH IS ABOUT WHAT IT TAKES I GRIND THE GRAIN AND TOSS IT IN THE VAT THE CONTENTS OF WHICH ARE BEING BROUGHT TO A BOIL IN STAGES THE FOUR VARIETIES OF HOPS I'LL BE USING ARE MEASURED OUT FOR STAGGERED APPLICATION A PITCHER OF THE APPROPRIATE MALT EXTRACT A SYRUP THAT TASTES LIKE GOODFORYOU CEREAL AND GIVES THE BEER ITS BODY IS DRAWN FROM A DRUM WITH A PREDICTABLY STICKY SPILL BETWEEN THESE TASKS AND PERIODIC STIRRINGS PLUS A LOT OF NEEDLESS PEERING AT THE CONTENTS AND CHATTING WITH FELLOW BREWERS THE TIME GOES BY WITH NARY A CALL FOR THE SHUFFLEBOARD ONE REASON THIS IS SUCH AN EFFORTLESS ART IS THE SOPHISTICATED EQUIPMENT THAT BREWWORKS HAS INSTALLED FOR REGULATING THE WATER TEMPERATURE AND FIGHTING CONTAMINATION I'M TOLD THIS IS CRITICAL AND HOME BREWERS KNOW IT CAN BE A NIGHTMARE THE WATER WHICH MR GREGG ASSURES ME ALSO REALLY MATTERS IN BEER IS STRAIGHT FROM THE HERMOSA TAP BUT WITH METALS AND CHLORINE SCREENED OUT A WEEK AFTER YOU'VE CREATED YOUR LOT AND STARTED FERMENTATION THE BREWWORKS PEOPLE MOVE IT TO COLDER STORAGE SETTLING TAKES ANOTHER WEEK THE LAGERS COULD MELLOW LONGER THEN AFTER FILTERING AND CARBONATION IT'S YOUR TURN TO FILL CAP AND LABEL THE BOTTLES THEY'RE BIG IN ORDER TO ENCOURAGE US LOUTS TO POUR THE BEER INTO A GLASS AS IT IS BEST SERVED BECAUSE THE BEER ITSELF HAS NO PRESERVATIVES IT NEEDS TO BE KEPT COOL AND IN ANY CASE DRUNK WITHIN A FEW MONTHS IF THIS IS AN INDIVIDUAL ASSIGNMENT THAT RATHER DISCOURAGES ONE FROM EXPERIMENTING WITH THE YASIBERRY OR RED HOT CHILI PEPPER VARIETIES BUT WHAT A WONDERFUL GIFT NO SHIPPING ACROSS STATE LINES THOUGH IT TOOK A YEAR AND A HALF TO GET BREWWORKS RUNNING A PROTOTYPE IS FRAUGHT WITH PROBLEMS OBSERVES MR SCUDDER AND IT'LL BE A STRUGGLE TO START THE NEXT FEW BUT HE AND HIS ASSOCIATES HAVE JUST THAT IN MIND LICENSING AND FRANCHISING IS THE REAL PAYOFF AND THEY'RE ANXIOUS ABOUT BEING THE ONES TO REALIZE IT STARBUCKS WASN'T THE FIRST OF THE CONTEMPORARY COFFEE BARS BUT NOBODY REMEMBERS WHAT WAS BUT THEY DO REMEMBER IT WAS IN SEATTLE WASN'T IT AND THE SAME PIONEER PREMIUM MAY SOON BE HERMOSA'S IN US UBREW I HOPE SO WE NEED TO BE KNOWN FOR SOMETHING AND THE JULY 4 IRONMAN AIN'T QUITE IT DUDE MR FERGUSON WRITES THE BUSINESS WORLD COLUMN FOR THE JOURNAL 9309140085 930914 CORPORATE LOANS ARE CASHING IN ON WALL STREET BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CORPORATE BANK LOANS ARE BLOSSOMING AS HOT TRADING VEHICLES AMONG A GROWING NETWORK OF MAJOR COMMERCIAL BANKS AND WALL STREET SECURITIES FIRMS THE BUDDING MARKET WHERE AN ESTIMATED 65 BILLION OF CORPORATE LOANS CHANGED HANDS DURING THIS YEAR'S FIRST HALF IS BEING DRIVEN BY INSURANCE COMPANIES MUTUAL FUNDS AND OTHER INVESTORS WHO ARE ATTRACTED BY THE RELATIVELY HIGH YIELDS AND SAFETY BANK LOANS ARE SECURED BY COLLATERAL AND HAVE STRONGER COVENANT PROTECTION THAN BONDS INVESTING IN BANK LOANS IS PART OF A VALUEBASED ASSETALLOCATION STRATEGY SAYS JAMES HUNT SENIOR VICE PRESIDENT AT SUNAMERICA INVESTMENTS A UNIT OF LOS ANGELES INSURER SUNAMERICA INC WHICH OWNS AROUND 500 MILLION IN LOANS WALL STREET WAS INITIALLY DRAWN IN BY THE OPPORTUNITIES IN LOANS TO COMPANIES UNDER BANKRUPTCYLAW PROTECTION BUT MANY MAJOR INVESTMENT BANKS SUCH AS GOLDMAN SACHS & CO AND MERRILL LYNCH & CO NOW TRADE PERFORMING BANK LOANS OF COMPANIES WITH HIGH DEBT LOANS AND PITCH THEM TO THEIR TRADITIONAL INSTITUTIONAL INVESTOR CLIENTS EVENTUALLY AS THE BOND AND LOAN MARKETS CONVERGE THE FIRMS HOPE TO UNDERWRITE LEVERAGED BANK LOANS JUST LIKE HIGHYIELD CORPORATE BONDS WE VIEW IT AS A VERY EXCITING BUSINESS WITH GROWTH OPPORTUNITIES SAID THOMAS GAHAN MANAGING DIRECTOR AT MERRILL WE'D LIKE TO BE IN A POSITION TO BE INVOLVED IN UNDERWRITING BANK LOANS MERRILL LYNCH IS ROLLING OUT ITS SECOND MUTUAL FUND THAT WILL INVEST IN BANK LOANS JOINING SIX EXISTING PRIME RATE FUNDS THAT INVEST IN LOANS CRESCENT CAPITAL CORP AN AFFILIATE OF DALLAS LEVERAGED BUYOUT FIRM HICKS MUSE & CO HAS JOINED WITH CHASE MANHATTAN CORP'S CHASE MANHATTAN BANK UNIT TO LAUNCH A 500 MILLION FUND FOR INSTITUTIONAL INVESTORS THAT WILL PREDOMINANTLY INVEST IN BANK LOANS HEDGE FUNDS SUCH AS AFFILIATES OF FINANCIER GEORGE SOROS HAVE BEEN SCOOPING UP LOANS THAT TRADE FROM 85 CENTS TO 95 CENTS ON THE DOLLAR TRADERS SAY MANY LOANS TRADE AT A DISCOUNT TO PAR OR FACE VALUE BECAUSE BANKS WANT TO RID THEIR BALANCE SHEETS OF RISKIER CREDITS OR CREDIT QUALITY HAS WORSENED SINCE THE LOANS WERE MADE MANY LOANS OF COMPANIES EMERGING FROM BANKRUPTCY PROTECTION ALSO TRADE BELOW THEIR IMPLIED VALUES A SPOKESMAN FOR MR SOROS DECLINED TO COMMENT BANKS HAVE FOUND THAT BY USING THE SECONDARY MARKET THEY COULD DIVERSIFY THEIR PORTFOLIO OF LOANS SIMILAR TO THE WAY SECURITIES INVESTORS MANAGE A PORTFOLIO IN STOCKS AND BONDS AFTER BANKS MADE TOO MANY LOANS TO ONE SECTOR SUCH AS REAL ESTATE OR LEVERAGED BUYOUTS SOPHISTICATED INSTITUTIONS HAVE USED PORTFOLIO MANAGEMENT TOOLS TO DIVERSIFY THEIR HOLDINGS AND LIMIT CONCENTRATION IN ANY ONE SECTOR BANKS ARE NOW VIEWING THE SECONDARY MARKET AS AN ASSETMANAGEMENT TOOL SAID JON CALDER HEAD OF SECONDARY LOAN TRADING AT CITICORP'S CITIBANK UNIT LAST YEAR TURNOVER IN THE BANK LOAN MARKET WAS AROUND 11 BILLION ACCORDING TO ESTIMATES BY LOAN PRICING CORP WHICH TRACKS COMMERCIAL LENDING REFLECTING THE INCREASED INTEREST IN INVESTING IN BANK LOANS GOLDMAN SACHS AND LOAN PRICING WILL UNVEIL TODAY AN INDEX OF 19 OF THE MOST LIQUID HIGHLY LEVERAGED CORPORATE LOANS THIS FOLLOWS CITICORP'S INTRODUCTION OF AN INDEX IN FEBRUARY THAT TRACKS AROUND 1000 LOANS THE INDEXES ALLOW INVESTORS AND BANKS TO MONITOR THE PERFORMANCE OF LOANS AS THEY DO STOCKS AND BONDS ESSENTIALLY TREATING LOANS AS JUST ANOTHER CLASS OF ASSETS IN WHICH TO INVEST GOLDMAN AND CITIBANK WANT TO DEVELOP DERIVATIVE INSTRUMENTS SUCH AS SWAP CONTRACTS BASED ON THESE INDEXES THAT WOULD ALLOW INVESTORS OR BANKS TO HEDGE THEIR LOAN PORTFOLIOS WITHOUT ACTUALLY SELLING THEIR LOANS THE SAME WAY INVESTORS USE FUTURES CONTRACTS ON THE STANDARD & POOR'S 500STOCK INDEX TO HEDGE THEIR STOCK PORTFOLIOS ALREADY BANKS ENGAGE IN SWAPS FOR INDIVIDUAL LOANS RATHER THAN POOLS OF LOANS AS A MEANS OF ADJUSTING THEIR EXPOSURE TO SPECIFIC BORROWERS LARGE SYNDICATED BANKS' LOANS ARE UNDERWRITTEN BY A HANDFUL OF BIG BANKS WHICH RESELL THEM TO OTHER FINANCIAL INSTITUTIONS BANKS USED TO HOLD THOSE OBLIGATIONS UNTIL THEY MATURED BUT BADDEBT PROBLEMS OF THE EARLY 1990S AND REGULATORY SCRUTINY PROMPTED BANKS TO UNLOAD HIGHERRISK ASSETS OFTEN AT A DISCOUNT TO FACE VALUE THAT CREATED A MARKET FOR THESE LOANS SIMILAR TO THE EVOLUTION OF THE NOW BOOMING MARKET FOR DEVELOPING COUNTRY DEBT FOR SOME INVESTORS WARY OF RISING INTEREST RATES LOANS CAN BE USED AS A HEDGE BECAUSE THEIR COUPON IS RESET AS INTEREST RATES CHANGE LOANS ARE VIRTUALLY ALWAYS FLOATINGRATE OBLIGATIONS WHOSE COUPON IS SET OFF OF THE BENCHMARK LONDON INTERBANK OFFERED RATE OR LIBOR MOST CORPORATE BONDS HAVE FIXEDRATE COUPONS SO THE BONDS LOSE VALUE WHEN RATES RISE A LOAN IS A FLOATINGRATE ASSET FROM THE INVESTORS' STANDPOINT SAID DAVID BROWNING HEAD OF STRUCTURED FINANCE AT CITICORP ONE OF THE MORE ACTIVE LOAN DEALERS YOU MIGHT THINK OF IT AS A SURROGATE FOR NONINVESTMENT GRADE COMMERCIAL PAPER THE NEW GOLDMAN SACHSLOAN PRICING INDEX SHOWS THAT FOR THE 12 MONTHS ENDED JUNE 30 JUNKBOND RETURNS OUTPACED THOSE OF LOANS THE HIGHYIELD MARKET RETURNED 171 ACCORDING TO MERRILL COMPARED WITH 107 FOR THE INDEX OF LEVERAGED LOANS PART OF THE DIFFERENCE REFLECTS THE SHARP DROP IN RATES WHICH IS DRIVING BOND PRICES HIGHER AND THE SHORTER AVERAGE MATURITY OF THE LOAN INDEX LOANS ALSO CARRY LOWER COUPONS BECAUSE THEY ARE COLLATERALIZED AND THEREFORE LESS RISKY BUT LOAN PRICING HAS FOUND THAT A PORTFOLIO OF HIGHLY LEVERAGED BANK LOANS ISSUED IN 1988 OUTPERFORMED HIGHYIELD BONDS ISSUED THE SAME YEAR BECAUSE THE RECOVERIES OF DEFAULTED LOANS ARE SUBSTANTIALLY HIGHER THAN FOR JUNK BONDS LOANS TO COMPANIES THAT HAVE EMERGED FROM BANKRUPTCYLAW PROTECTION HAVE RECOVERED 90 TO 100 IN MANY CASES UNSECURED CREDITORS ARE LUCKY TO GET 50 CENTS ON THE DOLLAR AND OFTEN JUST GET EQUITY IN THE NEWLY FORMED COMPANY THE SAFETY OF THIS ASSET CLASS HAS AN EXCELLENT TRACK RECORD SAID MR HUNT OF SUNAMERICA THE SECONDARY MARKET FOR LOANS ALLOWS INVESTORS TO COMPARE THE RELATIVE VALUE OF LOANS AND BONDS ISSUED BY THE SAME COMPANY TAKE THE CASE OF STONE CONTAINER CORP A CHICAGO PAPER COMPANY SUFFERING FROM TOO MUCH DEBT AMID A DOWNTURN IN THE PAPER MARKET THE COMPANY'S 11875 BONDS HAVE A YIELD TO MATURITY OF AROUND 124 ITS LOANS PAY 225 PERCENTAGE POINTS OVER LIBOR WHICH IS AROUND 32 AND TRADE AT A PRICE OF 92 CENTS ON THE DOLLAR GIVING IT AN EXPECTED ANNUALIZED RETURN OF 105 BUT THE COMPANY IS SELLING ASSETS AND NEW SECURITIES IN AN EFFORT TO RAISE AROUND 500 MILLION TO REDUCE BANK DEBT AT PAR IF THE PROCEEDS PAY OFF BANK LOANS BY THE END OF NEXT MONTH THE ANNUALIZED RETURN JUMPS TO 1525 9309140084 930914 WHO'S NEWS FLUOR CORP FLUOR CORP IRVINE CALIF VILMA S MARTINEZ AN ATTORNEY WAS ELECTED A DIRECTOR OF THIS CONSTRUCTION AND ENGINEERING CONCERN MS MARTINEZ 49 YEARS OLD HAS BEEN A LITIGATION PARTNER AT THE LOS ANGELES LAW FIRM OF MUNGER TOLLES & OLSON SINCE 1982 HER ELECTION BRINGS THE NUMBER OF FLUOR DIRECTORS TO 14 9309140083 930914 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS AND WEDNESDAY SEPTEMBER 3 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9309140082 930914 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FORTUNE PETROLEUM CORP AN OFFERING OF 900000 UNITS OF TWO COMMON SHARES AND TWO COMMON STOCK PURCHASE WARRANTS PER UNIT VIA DICKINSON & CO ISRAEL AN OFFERING OF 400 MILLION OF ZERO COUPON SAVINGS BONDS AND ECONOMIC DEVELOPMENT ISSUE DOLLAR BONDS VIA DEVELOPMENT CORP OF ISRAEL JC PENNEY CO A SHELF OFFERING OF UP TO 750 MILLION OF DEBT SECURITIES AND WARRANTS M/I SCHOTTENSTEIN HOMES INC AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA PAINEWEBBER INC AND KIDDER PEABODY & CO MOTOROLA INC AN OFFERING OF LIQUID YIELD OPTION NOTES NVIRO INTERNATIONAL CORP AN INITIAL OFFERING OF 2 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO LP AND RAYMOND JAMES & ASSOCIATES 9309140081 930914 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY NATO OUT OF AREA AND VERY MUCH IN BUSINESS THE FOLLOWING IS EXCERPTED FROM A SPEECH BY NATO SECRETARY GENERAL MANFRED WOERNER GIVEN FRIDAY IN BRUSSELS AT THE 35TH ANNUAL CONFERENCE OF THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES THE COLLAPSE OF SOVIET COMMUNISM HAS LEFT US WITH A PARADOX THERE IS LESS THREAT BUT ALSO LESS PEACE THE MEANS WE HAVE BEEN WILLING TO EMPLOY AND THE RISKS WE HAVE BEEN WILLING TO TAKE STILL FALL SHORT OF WHAT IS NEEDED TO STOP AGGRESSION OR CREATE THE BASIS FOR A LASTING PEACE A GAP HAS CONSEQUENTLY EMERGED BETWEEN OUR VISION OF A NEW PEACEFUL ORDER IN EUROPE AND OUR APPRECIATION OF THE PRICE WE MUST PAY TO BRING IT ABOUT THIS GAP NOT ONLY PRODUCES INSTABILITY BUT IT ALSO UNDERMINES OUR DEMOCRATIC VALUES AND THE CREDIBILITY OF THE POSTWAR INSTITUTIONS WHICH HAVE DONE SO MUCH TO END THE COLD WAR WHAT IS THE CONSEQUENCE OF THE FAILURE OF THE INTERNATIONAL COMMUNITY TO DEAL SUCCESSFULLY WITH A MAJOR CRISIS SUCH AS EXYUGOSLAVIA SHALL WE ABANDON OUR OBJECTIVE OF BUILDING A NEW INTERNATIONAL ORDER BASED ON HUMAN RIGHTS THE RULE OF LAW AND DEMOCRACY SHALL WE RENOUNCE OUR GOAL OF A NEW MORE DEMOCRATIC JUST AND PEACEFUL EUROPEAN ORDER SHALL WE GIVE UP OUR CONCEPT OF INTERLOCKING INSTITUTIONS BEFORE WE HAVE EVEN HAD A CHANCE TO IMPLEMENT IT FULLY SHALL WE JUST LEAVE THE WORLD TO THE FORCES OF DISORDER AND LIMIT OURSELVES TO SAFEGUARDING OUR OWN NATIONAL BORDERS AND SECURITY OR AT MOST TO ATTEMPTING TO CONTAIN THE CRISIS SPOTS SO AS TO PREVENT THEM FROM SPREADING MY ANSWERS ARE CLEARLY NO WE SIMPLY CANNOT AFFORD SUCH PASSIVITY NOT ONLY BECAUSE IT GOES AGAINST OUR PRINCIPLES AND MORALS BUT ALSO BECAUSE IT GOES AGAINST OUR NATIONAL SELFINTERESTS IN THE WORLD OF TODAY YOU SIMPLY CANNOT LIVE IN SECURITY SURROUNDED BY CHAOS SOME OF THE LESSONS OF OUR FAILURES ARE OBVIOUS FIRST POLITICAL SOLUTIONS AND DIPLOMATIC EFFORTS WILL ONLY WORK IF BACKED BY THE NECESSARY MILITARY POWER AND THE CREDIBLE RESOLVE TO USE IT AGAINST AN AGGRESSOR SECOND IF YOU CANNOT OR DO NOT WANT TO HELP THE VICTIM OF AGGRESSION ENABLE HIM TO HELP HIMSELF THIRD THE PURPOSE OF INTERVENTION IS NOT NECESSARILY TO WIN A WAR BUT TO INFLUENCE THE BEHAVIOR OF THE PARTY CONCERNED WE NEED TO HAVE LIMITED MILITARY OPTIONS FOR LIMITED POLITICAL OR DIPLOMATIC OBJECTIVES IT IS WRONG TO THINK ONLY IN CATEGORIES OF ALL OR NOTHING FOURTH THREATEN ONLY IF YOU ARE DETERMINED TO IMPLEMENT THE THREAT FIFTH DEFINE THE STRATEGIC OBJECTIVES OF YOUR ACTIONS AS EARLY AND AS CLEARLY AS POSSIBLE SIXTH CRISIS PREVENTION LIKE DETERRENCE WILL WORK ONLY IF YOUR RESOLVE TO PREVENT CONFLICT IS CREDIBLE AND ACCOMPANIED BY FIRM ACTION SEVENTH AVOID SITUATIONS IN WHICH YOUR OWN TROOPS BECOME HOSTAGES FINALLY THE MOST IMPORTANT LESSON IS OF COURSE THAT NO INTERNATIONAL ORGANIZATION CAN WORK EFFICIENTLY WITHOUT THE POLITICAL WILL AND UNITY OF ITS MEMBER NATIONS THE UN AND NATO CAN COMPLEMENT EACH OTHER TO THE BENEFIT OF BOTH THE UNITED NATIONS LACKS THE FORCES THE INFRASTRUCTURE THE LOGISTICS AND THE COMMAND AND CONTROL FACILITIES FOR MAJOR MILITARY OPERATIONS FOR NATO IN TURN COOPERATION WITH THE UN FACILITATES THE ALLIANCE'S NEW ROLE IN CRISIS MANAGEMENT IT PUTS OUR EFFORTS IN A BROAD INTERNATIONALLY ACCEPTED CONTEXT OF COURSE EVERY INSTITUTION KEEPS ITS SPECIFIC AND AUTONOMOUS CHARACTER NATO CANNOT BE REGARDED AS AN INSTRUMENT OR AS A MILITARY SUBCONTRACTOR TO THE UNITED NATIONS NOR DO WE EXPECT THAT THE UNITED NATIONS SHOULD ACCEPT NATO'S LEADERSHIP WE NEED TO DEVELOP A TRUE PARTNERSHIP BETWEEN BOTH ORGANIZATIONS NATO HAS CHANGED MORE THAN ANY OTHER INTERNATIONAL INSTITUTION IN THE LAST FEW YEARS WE HAVE ADOPTED A NEW STRATEGY AND FORCE POSTURE WE HAVE STARTED TO STRENGTHEN OUR EUROPEAN PILLAR WE HAVE ESTABLISHED CLOSE RELATIONS WITH OUR FORMER ADVERSARIES THROUGH NACC THE NORTH ATLANTIC COOPERATION COUNCIL AND WE HAVE STARTED PARTICIPATING IN CRISIS MANAGEMENT BEYOND OUR BORDERS SO THE SLOGAN OUT OF AREA OR OUT OF BUSINESS IS OUT OF DATE WE ARE ACTING OUT OF AREA AND WE VERY MUCH ARE IN BUSINESS STILL WE NEED TO FURTHER ADAPT THE ALLIANCE TO PLAY ITS ROLE IN STABILIZING EUROPE FIRST WE HAVE TO FURTHER DEVELOP THE ALLIANCE'S CAPABILITIES FORCES STRUCTURES AND PROCEDURES FOR CRISIS MANAGEMENT PEACEKEEPING AND PEACEMAKING SECOND A MAJOR AND PERHAPS THE PRIMARY FUTURE MISSION OF NATO WILL BE TO PROJECT STABILITY TO THE EAST WE HAVE MADE CONCRETE AND SUCCESSFUL FIRST STEPS BY CREATING THE NACC IT SHOULD BE OUR TASK TO ENHANCE THE SECURITY OF EUROPE AS A WHOLE THROUGH CONSULTATION AND COOPERATION IN THE NACC FRAMEWORK ESPECIALLY IN AREAS SUCH AS PEACEKEEPING IN ADDITION I THINK WE SHOULD NOW CONSIDER FURTHER STEPS NATO IS NOT A CLOSED SHOP WE HAVE ALWAYS SAID THAT THE OPTION OF MEMBERSHIP IS OPEN THE TIME HAS COME TO OPEN A MORE CONCRETE PERSPECTIVE TO THOSE COUNTRIES OF CENTRAL AND EASTERN EUROPE WHICH WANT TO JOIN NATO AND WHICH WE MAY CONSIDER ELIGIBLE FOR FUTURE MEMBERSHIP THIS SHOULD BE ONE OF THE MAJOR SUBJECTS OF THE FORTHCOMING NATO SUMMIT EVEN IF THERE ARE NO IMMEDIATE PLANS TO ENLARGE NATO SUCH A MOVE WOULD INCREASE THE STABILITY OF THE WHOLE OF EUROPE AND BE IN THE INTEREST OF ALL NATIONS INCLUDING RUSSIA AND UKRAINE WE SHALL INTENSIFY OUR SECURITY PARTNERSHIP WITH RUSSIA UKRAINE AND OUR OTHER COOPERATION PARTNERS MY THIRD AREA CONCERNS THE NEED TO REBALANCE THE ALLIANCE SO THAT EUROPE ASSUMES ITS FAIR SHARE OF RESPONSIBILITY THE END OF THE COLD WAR HAS NOT ONLY CHANGED FUNDAMENTALLY THE NATURE OF WHAT WE ONCE CALLED EASTWEST RELATIONS BUT OF TRANSATLANTIC RELATIONS AS WELL AS US SECRETARY OF STATE WARREN CHRISTOPHER HAS EMPHASIZED THE CHOICE CANNOT BE BETWEEN UNILATERAL AMERICAN ACTION AND NO ACTION AT ALL PUBLIC OPINION IN THE UNITED STATES WILL NOT BE INDIFFERENT TO WHAT IT PERCEIVES AS THE FAILURE OF EUROPE TO DEFEND ITS OWN INTERESTS THE RESULT CAN ONLY BE A MORE RELUCTANT US LEADERSHIP AND LESS INVOLVEMENT OF THE UNITED STATES THE FOURTH AREA IS MAINTAINING A SIGNIFICANT LEVEL OF WELLTRAINED AND WELLEQUIPPED ARMED FORCES THE STABILIZATION OF DEFENSE BUDGETS WHICH NATO DEFENSE MINISTERS AGREED TO LAST MAY IS NOW URGENT IF WE ARE TO AVOID A KIND OF FREEFALL STRUCTURAL DISARMAMENT WHICH WOULD RAPIDLY DEPRIVE OUR MEMBER NATIONS OF MEANINGFUL MILITARY CAPABILITIES FOR MANY YEARS TO COME AND WEAKEN SERIOUSLY OUR CONVENTIONAL DETERRENCE POSTURE IN HANDLING ANY CRISIS WHAT YOU HAVE AVAILABLE VERY MUCH DETERMINES WHAT OPTIONS YOU HAVE THE FEWER DEPLOYABLE FORCES THEN THE FEWER OPTIONS FOR DECISIONMAKERS AND THE LESS CREDIBILITY ACCORDED SUBSEQUENT ACTIONS IT IS NOT BEYOND THE CAPACITY OF OUR WESTERN DEMOCRACIES TO UPHOLD SECURITY AND PEACE IN EUROPE IF THERE IS ONE LESSON FROM HISTORY IT IS THAT THE SOONER ONE STANDS UP TO A BULLY THE LESS THE FORCE REQUIRED AND THE FEWER THE RISKS ENCOUNTERED 9309140080 930914 RAWSTEEL OUTPUT GAINS 12 WASHINGTON RAWSTEEL PRODUCTION BY US MILLS INCREASED 12 LAST WEEK TO 1843000 TONS FROM 1822000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 134 FROM THE 1626000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 879 OF ITS CAPABILITY LAST WEEK COMPARED WITH 869 THE PREVIOUS WEEK AND 753 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9309140079 930914 LEISURE & ARTS BOOKSHELF MARIO CUOMO AT HIS BEST BY RICHARD J TOFEL AS ANY REGULAR VIEWER OF CNN KNOWS THE BEST PUBLIC SPEAKER IN PUBLIC OFFICE TODAY IS THE GOVERNOR OF NEW YORK MARIO M CUOMO ANY LINGERING DOUBTS ON THE MATTER ARE CONCLUSIVELY ERASED BY HIS THIRD BOOK AFTER TWO DIARIES A COLLECTION OF SPEECHES PORTENTOUSLY ENTITLED MORE THAN WORDS ST MARTIN'S 300 PAGES 2395 THESE WORDS ARE MR CUOMO AT HIS BEST STIRRING TOUCHING POINTED OFTEN FUNNY USUALLY POWERFUL BUT ARE THEY MORE THAN WORDS MR CUOMO'S CRITIQUES CAN BE PATHBREAKING VERGING ON BRILLIANT PROPAGANDA IN THE BEST SENSE OF THAT MUCHMALIGNED WORD THIS COLLECTION FOR INSTANCE INCLUDES A 1974 APPEAL TO RETURN THE DEMOCRATIC PARTY TO THE MIDDLE CLASS THE INDIVIDUAL NOT POOR ENOUGH FOR WELFARE NOR RICH ENOUGH TO BE WORRYFREE THE MEN AND WOMEN WHO WORK FOR A LIVING NOT BECAUSE A PSYCHIATRIST SAYS IT'S A GOOD WAY FOR THEM TO FILL THE INTERVAL BETWEEN BIRTH AND ETERNITY ALSO INCLUDED ARE MR CUOMO'S 1984 AND 1985 WORD PORTRAITS OF THE REAGAN YEARS AS A TALE OF TWO CITIES THE CRITIQUE THAT CULMINATED IN THE DEMOCRATIC VICTORY OF 1992 MOREOVER WHILE MR CUOMO DRAWS ON DICKENS FOR THE TITLE OF HIS POLEMIC HIS MOST POWERFUL IMAGE IS PURELY AMERICAN THE REPUBLICANS BELIEVE THE WAGON TRAIN WILL NOT MAKE IT TO THE FRONTIER UNLESS SOME OF OUR OLD SOME OF OUR YOUNG AND SOME OF OUR WEAK ARE LEFT BEHIND BY THE SIDE OF THE TRAIL WE DEMOCRATS BELIEVE THAT WE CAN MAKE IT ALL THE WAY WITH THE WHOLE FAMILY INTACT BUT MR CUOMO'S INSTINCTS ARE NOT UNERRING THE SAME 1984 SPEECH TO THE DEMOCRATIC CONVENTION THE ONE THAT BROUGHT HIM TO NATIONAL PROMINENCE ALSO CHIDES THE REPUBLICANS BECAUSE THEY BELIEVE WE CAN PILE MISSILES SO HIGH THAT THEY WILL PIERCE THE CLOUDS AND THE SIGHT OF THEM WILL FRIGHTEN OUR ENEMIES INTO SUBMISSION WHICH IS NOT UNLIKE WHAT HAPPENED THE COLLECTION ALSO INCLUDES A SPEECH PROVIDING SOME INSIGHT INTO MORE RECENT EVENTS IT IS MR CUOMO'S 1986 ADDRESS ON THE SELECTION OF JUDGES AN AREA IN WHICH EVEN HIS CRITICS ACKNOWLEDGE HE HAS EXCELLED ALMOST SINGLEHANDEDLY MAKING POSSIBLE THE RESTORATION OF THE REPUTATION OF NEW YORK'S HIGHEST COURT WHAT HAS MR CUOMO'S SECRET BEEN AS A JUDGEPICKER THE BEST WAY TO PICK A JUDGE IS BY PICKING SOMEONE WHO'S GOOD AT DOING WHAT A JUDGE IS SUPPOSED TO DO NOT AT WHAT A PRESIDENT A GOVERNOR OR LEGISLATOR IS SUPPOSED TO DO IN OTHER WORDS MR CUOMO MAY NOT BE INTERESTED IN JOINING ANY SUPREME COURT THAT WOULD HAVE HIM FOR A MEMBER THERE IS A FLAW IN THIS COLLECTION OF WORDS HOWEVER AND IT COMES WHEN MR CUOMO TURNS FROM CRITIQUE TO PRESCRIPTION THE BEST EXAMPLE IS PROVIDED BY THE SPEECH OF WHICH THE AUTHOR IS CLEARLY THE MOST PROUD THE ONE ON WHICH HE TELLS US HE WORKED THE HARDEST AND LONGEST HIS 1984 TALK ON ABORTION AT NOTRE DAME MR CUOMO CAME TO THIS ADDRESS UNDER FIRE FOR HIS PROCHOICE STAND AND AS AN OLDFASHIONED CATHOLIC WHO SINS REGRETS STRUGGLES WORRIES GETS CONFUSED AND MOST OF THE TIME FEELS BETTER AFTER CONFESSION HE SEEMS TO SAY HE ACCEPTS THE CHURCH'S VIEW THAT ABORTION IS ALWAYS MORALLY WRONG THIS IS OF COURSE A PERSONAL JUDGMENT AND CERTAINLY A VIEW TO WHICH MR CUOMO CITIZEN AND COMMUNICANT IS ENTITLED BUT THEN WE TURN TO THE PUBLIC ARENA AND FIND THAT GOV CUOMO'S PREFERRED PUBLIC POLICY CONSISTS OF NO RESTRICTIONS ON ABORTION AND PUBLIC FUNDING OF ABORTIONS AT BOTH THE STATE AND FEDERAL LEVELS HE PURPORTS TO RECONCILE THESE VIEWS BY ASSERTING THAT MORALITY SHOULD NOT BE TRANSLATED INTO PUBLIC POLICY ABSENT CONSENSUS THE RESULT IS A PHILOSOPHICAL MUDDLE IT REQUIRES FOR INSTANCE THAT MR CUOMO LOOK FOR SUPPORT TO THE CHURCH'S PRECIVIL WAR SILENCE ON SLAVERY IN THE SOUTH AS A RHETORICAL POINT BEFORE AN AUDIENCE OF CLERICS THIS IS NICE BUT THAT SILENCE MUST CLEARLY BE SEEN FROM THIS DISTANCE AS SHAMEFUL SURELY WE COULD AGREE NOW THE ONLY JUSTIFIABLE ANSWER TO SLAVERY IN 1860 WAS IMMEDIATE ABOLITION AND TO FURTHER BUTTRESS THE CHURCH'S POSITION ON SLAVERY AS MR CUOMO DOES BY NOTING THAT HIS HERO LINCOLN BEHAVED WITH SIMILAR DISCRETION IS TO IGNORE THAT THIS EQUIVOCATION WHILE POLITICALLY PRUDENT IS TO LINCOLN'S EVERLASTING SHAME HIS OVERALL GREATNESS NOTWITHSTANDING IF SOME BEHAVIOR IS ALWAYS MORALLY WRONG IT SHOULD BE OPPOSED CONSTRAINED ELIMINATED AND THE POLITICAL MEANS TO THAT END SHOULD BE FORGED IN PUBLIC BY PUBLIC OFFICIALS UNFORTUNATELY MR CUOMO'S LIMITS AS A POLICYMAKER DESPITE HIS BRILLIANCE AS A PHRASEMAKER ARE ALSO ON DISPLAY HERE AS ANY CLEAREYED COMPARISON OF THE SOARING VISION OF THE FAMILY OF NEW YORK OUTLINED IN HIS FIRST AND SECOND INAUGURAL ADDRESSES AS GOVERNOR WITH THE ACTUAL CONDITION OF NEW YORK TODAY WILL REVEAL MR CUOMO JUSTIFIABLY PAYS TRIBUTE TO LINCOLN FOR HIS GENIUS IN TWO ARENAS THOSE OF WORDS AND DEEDS IT IS AS IF HOMER NOT ONLY CHRONICLED THE SIEGE OF TROY BUT CONDUCTED THE SIEGE AS WELL AS IF SHAKESPEARE SET HIS PLAY WRITING ASIDE TO LEAD THE ENGLISH AGAINST THE ARMADA BUT THE WORK OF CUOMO THE POLITICAL EXECUTIVE IS BETTER SUMMED UP IN HIS OWN RECENT ASSESSMENT OF THE WORLD 25 YEARS AFTER THE DEATH OF ROBERT KENNEDY I HAVE TO CONFESS THE COMMITMENT SEEMS TO LIVE MORE IN THE POETRY OF OUR ASPIRATIONS THAN IN THE PROSE OF THE REALITIES WE HAVE CREATED MR TOFEL IS AN ASSISTANT MANAGING EDITOR OF THE JOURNAL 9309140078 930914 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC EMPLOYMENT PANEL FILES SUIT ALLEGING AGE DISCRIMINATION THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION FILED AN AGEDISCRIMINATION LAWSUIT AGAINST INSURER AMERICAN INTERNATIONAL GROUP INC ACCORDING TO THE SUIT FILED IN FEDERAL COURT IN NEW YORK A MANAGER AT AN AIGOWNED GOLF RESORT FIRED DANIEL CROUSE 54 YEARS OLD AND LINDA CROUSE 45 BECAUSE OF THEIR AGES ACCORDING TO THE SUIT THE MANAGER MADE DEROGATORY REMARKS ABOUT THEIR AGE FIRING THEM AFTER THREE WEEKS THEIR REPLACEMENTS WERE IN THEIR 20S THE SUIT SAID AIG REPRESENTATIVES WEREN'T AVAILABLE FOR COMMENT THE BREWSTER NY GOLF RESORT NAMED IN THE SUIT MOREFAR BACK O'BEYOND IS OWNED BY AIG ASSURANCE CO A UNIT OF NEW YORK CITYBASED AIG 9309140077 930914 CONGRESS ALLOWS 80000ACRE EXCHANGE OF ANCIENT FOREST FOR FEDERAL LAND BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CONGRESS PASSED LEGISLATION ENABLING A TIMBER COMPANY TO EXCHANGE 80000 ACRES OF ANCIENT FOREST FOR LESS ECOLOGICALLY SENSITIVE GOVERNMENTOWNED LANDS IN A DEAL THAT COULD SERVE AS A MODEL FOR HELPING RESOLVE THE BITTER BATTLE OVER THE NATION'S FORESTS THE TRANSACTION CALLS FOR A COMBINATION OF SWAPS OF BIG SKY TIMBER CO LAND FOR US FOREST SERVICE LAND AND OUTRIGHT PURCHASES BY THE GOVERNMENT POSSIBLY WITH FINANCIAL HELP FROM SUCH ORGANIZATIONS AS THE NATURE CONSERVANCY TIM BLIXSETH A COOWNER OF BIG SKY VALUED THE DEAL AT ABOUT 100 MILLION SOME ENVIRONMENTALISTS SAID THE FIGURE WAS HIGH BUT BOTH SIDES SAID IT IS BELIEVED TO BE THE LARGEST SUCH LAND EXCHANGE EVER UNDERTAKEN BY THE FOREST SERVICE SUCH COMBINATIONS OF SWAPS AND PURCHASES HAVE BEEN SEEN BY THE CLINTON ADMINISTRATION AS A TOOL FOR TRYING TO FORGE COMPROMISES BETWEEN LOGGERS AND ENVIRONMENTALISTS IN THIS CASE CONSERVATIONISTS HAVE BEEN TRYING TO WREST THE LAND WHICH INCLUDES 37000 ACRES OF VIRTUALLY ROADLESS WILDERNESS NEAR THE GALLATIN RIVERFROM PRIVATE HANDS FOR NEARLY 75 YEARS ALTHOUGH THE LAND SITS WITHIN THE BOUNDARIES OF THE GALLATIN NATIONAL FOREST ADJACENT TO YELLOWSTONE NATIONAL PARK IT HAS BEEN PRIVATELY OWNED SINCE CONGRESS GRANTED HUGE TRACTS OF WESTERN LANDS TO THE RAILROADS IN RECENT YEARS PRESSURE FROM CONSERVATIONISTS PICKED UP AS BIG SKY WHICH ACQUIRED THE LAND LAST YEAR FROM PLUM CREEK TIMBER LP MADE PLANS TO LOG AREAS SUCH AS PORCUPINE CREEK A BACKCOUNTRY WATERSHED THAT DRAINS INTO THE GALLATIN ONE OF THREE MAJOR RIVERS THAT FLOW THROUGH YELLOWSTONE ENVIRONMENTALISTS ALSO HAVE BEEN CONCERNED ABOUT POSSIBLE MINING BY MERIDIAN MINING CO WHICH OWNS MINERAL RIGHTS TO THE BIG SKY LAND THE LEGISLATION AUTHORIZES THE FOREST SERVICE INITIALLY TO SWAP 16000 ACRES TO BIG SKY IN RETURN FOR THE 37000 ACRES NEAR THE GALLATIN RIVER THAT FOREST SERVICE LAND CONTAINS LESSVALUABLE SECONDGROWTH TIMBER BUT IS EASIER FOR LOGGERS TO ACCESS AND ISN'T LIKELY TO STIR AS MUCH ENVIRONMENTAL RESISTANCE IN ADDITION THE LEGISLATION WILL PROVIDE AN ASYET UNDETERMINED AMOUNT OF MONEY TOWARD THE PURCHASE OF PORCUPINE CREEK'S 8000 VIRGIN ACRES ESTIMATES OF THE POTENTIAL PRICE TAG RANGE FROM 4 MILLION TO MANY TIMES THAT AMOUNT OVER THE NEXT FEW YEARS BIG SKY WILL BE ABLE TO SWAP MORE LAND FOR GOVERNMENT LAND OR NEGOTIATE SALES MERIDIAN HAS AGREED TO SWAP ITS MINERAL RIGHTS FOR THOSE ON OTHER PUBLIC LANDS AND ALSO WILL RECEIVE CERTAIN PAYMENTS FROM THE GOVERNMENT THE DEAL IS A BELLWETHER MODEL FOR HOW DIFFERENT INTERESTS CAN COME TOGETHER TO SOLVE DIFFICULT RESOURCE ISSUES SAID MR BLIXSETH ADDED MICHAEL SCOTT OF THE WILDERNESS SOCIETY ONE OF THE COUNTRY'S BIGGEST ENVIRONMENTAL GROUPS IT'S A SIGNIFICANT VICTORY FOR THE YELLOWSTONE ECOSYSTEM THAT SHOWS HOW A VARIETY OF TECHNIQUES CAN BE APPLIED TO THESE KINDS OF PROBLEMS FOR MR BLIXSETH AND BIG SKY IT ALSO WOULD BE A WINDFALL BIG SKY BOUGHT THE LAND FOR ABOUT 25 MILLION MEANING THAT IF HIS 100 MILLION ESTIMATE OF THE DEAL'S VALUE IS CORRECT BIG SKY WILL TRIPLE ITS MONEY IN JUST A FEW YEARS 9309140076 930914 LONGTIME FOES SHAKE HANDS AS PLO ISRAEL SIGN LANDMARK PEACE ACCORD BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A SCENE UNIMAGINABLE ONLY WEEKS AGO ISRAELI PRIME MINISTER YITZHAK RABIN AND YASSER ARAFAT CHAIRMAN OF THE PALESTINE LIBERATION ORGANIZATION BROKE DECADESOLD TABOOS AND SHOOK HANDS TO CEMENT THE SIGNING OF THEIR LANDMARK PEACE ACCORD UNDER A BRILLIANT SUN THAT MATCHED THE OPTIMISTIC MOOD ON THE SOUTH LAWN OF THE WHITE HOUSE PRESIDENT CLINTON WELCOED THE LONGTIME BITTER ENEMIES TO THIS GREAT OCCASION OF HISTORY AND HOPE AS MESSRS ARAFAT AND RABIN FLANKED MR CLINTON ISRAELI AND PALESTINIAN OFFICIALS SIGNED THE AGREEMENT THAT GRANTS PALESTINIAN AUTHORITY TO GOVERN INITIALLY IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO AND SOON AFTER IN MOST OF THE WEST BANK GAZA AND THE WEST BANK HAVE BEEN OCCUPIED BY ISRAEL SINCE THE 1967 WAR FOLLOWING THE SIGNING MR ARAFAT ASSURED ISRAEL OUR PEOPLE DO NOT CONSIDER THAT EXERCISING THE RIGHT TO SELFDETERMINATION COULD VIOLATE THE RIGHTS OF THEIR NEIGHBORS OR INFRINGE ON THEIR SECURITY AND ISRAELI FOREIGN MINISTER SHIMON PERES WHO SIGNED THE AGREEMENT FOR ISRAEL PAINTED A SWEEPING VISION OF FUTURE ECONOMIC COOPERATION PROMISING PALESTINIANS WE SHALL OFFER YOU OUR HELP IN MAKING GAZA PROSPER AND JERICHO BLOSSOM AGAIN BUT THE DIFFICULTIES AND UNCERTAINTIES THAT LIE AHEAD WERE REFLECTED IN THE HESITANCY WITH WHICH MR RABIN COAXED BY MR CLINTON ACCEPTED MR ARAFAT'S HANDSHAKE AS WELL AS BY THEIR DIFFERENT WORDS ABOUT JERUSALEM FIRST ISRAELIS AND PALESTINIANS MUST RESOLVE SCORES OF PROBLEMS THAT WILL ARISE AS THEY FILL IN THE DETAILS OF THE DECLARATION OF PRINCIPLES SIGNED YESTERDAY TWO YEARS FROM NOW BOTH SIDES WILL BEGIN NEGOTIATIONS ON THE FINAL STATUS OF THE TERRITORIES AND WILL CONFRONT THORNY ISSUES SUCH AS JERUSALEM AND THE STATUS OF PALESTINIAN REFUGEES AND JEWISH SETTLERS POSTPONED BECAUSE THEY APPEAR INTRACTABLE IN THE INTERIM THE AGREEMENT CALLS FOR ISRAEL TO PULL BACK ITS TROOPS FROM THE JERICHO AREA BUT NOW THE TWO SIDES MUST DEFINE PRECISELY WHERE THE LINE OF REDEPLOYMENT WILL BE OTHER POTENTIALLY KNOTTY SHORTTERM ISSUES SAID A SENIOR US OFFICIAL INCLUDE ARRANGEMENTS FOR A PALESTINIAN SAFE PASSAGE BETWEEN GAZA AND JERICHO ACROSS ISRAELI TERRITORY AND WORKING OUT DETAILS OF THE PALESTINIAN ELECTIONS THAT MUST BE HELD WITHIN NINE MONTHS AT A WHITE HOUSE RECEPTION AFTER THE SIGNING MR CLINTON STRESSED TO MR ARAFAT THE IMPORTANCE OF MAINTAINING MOMENTUM ACCORDING TO A US OFFICIAL THAT SPIRIT WILL BE UPHELD TODAY IN OTHER MIDEAST TALKS WHEN ISRAEL AND JORDAN ARE EXPECTED TO SIGN AN AGREEMENT ON A SPECIFIC AGENDA FOR THEIR PEACE TALKS THE TWO NATIONS WILL THEN BEGIN TACKLING THE ISSUES THAT SEPARATE THEM PLAYING TO THEIR DOMESTIC CONSTITUENCIES MR ARAFAT AND MAHMOUD ABBAS A MEMBER OF THE PLO EXECUTIVE COMMITTEE WHO SIGNED THE AGREEMENT FOR THE GROUP STRESSED THE FINAL PHASE OF THE PEACE PROCESS PARTLY TO COUNTER CHARGES FROM RIVAL RADICAL PALESTINIAN GROUPS WHO CLAIM THE PLO HAS SETTLED FOR TOO LITTLE AT THAT TIME WE WILL BE LAYING THE LAST BRICK IN THE EDIFICE OF PEACE WHOSE FOUNDATION HAS BEEN ESTABLISHED TODAY MR ABBAS SAID BOTH MEN MADE THEIR REMARKS IN ENGLISH MR RABIN IN TELEVISION INTERVIEWS OVER THE WEEKEND EMPHASIZED THAT ISRAEL WILL NEVER GIVE UP SOVEREIGNTY OVER ALL OF JERUSALEM THE TWO SIDES WILL HAVE TO WORK OUT HOW TO SATISFY THE CLAIMS OF HUNDREDS OF THOUSANDS OF PALESTINIAN REFUGEES DISPLACED DURING ARABISRAELI WARS THE TWO SIDES ALSO WILL HAVE TO GRAPPLE WITH HOW TO DEAL WITH THE 130000 JEWISH SETTLERS WHO NOW LIVE IN THE WEST BANK AND GAZA A WALL STREET JOURNALNBC NEWS POLL TAKEN OVER THE WEEKEND SHOWS 60 OF AMERICANS POLLED BELIEVE ISRAELIS AND PALESTINIANS WON'T BE ABLE TO PRODUCE A LASTING PEACE AGREEMENT WHILE 32 BELIEVE SUCH AN ACCORD IS POSSIBLE STRONG US ROLE PRESIDENT CLINTON ACKNOWLEDGING THE CONTINUING NEED FOR A STRONG US ROLE SAID THE UNITED STATES IS COMMITTED TO ENSURING THAT THE PEOPLE WHO ARE AFFECTED BY THIS AGREEMENT WILL BE MADE MORE SECURE BY IT AND TO LEADING THE WORLD IN MARSHALING THE RESOURCES NECESSARY TO IMPLEMENT THE DIFFICULT DETAILS THAT WILL MAKE REAL THE PRINCIPLES TO WHICH YOU COMMIT YOURSELVES TODAY THE US ITSELF ISN'T EXPECTED TO MAKE A MAJOR FINANCIAL CONTRIBUTION TO THE MIDEAST AS IT DID IN 1979 WHEN ISRAEL SIGNED A PEACE TREATY WITH EGYPT THE JOURNALNBC POLL SHOWS 70 OF THOSE SURVEYED DON'T BELIEVE THE US SHOULD HELP PAY FOR THE COST OF THE PEACE ACCORD MR CLINTON CLEARLY HAD THE MIDEAST ON HIS MIND YESTERDAY A SENIOR OFFICIAL SAID THAT THE PRESIDENT AWOKE AT 3 AM AND WHEN HE COULDN'T FALL BACK TO SLEEP READ THE BOOK OF JOSHUA AND MADE CHANGES IN HIS SPEECH ON THE ISRAELI SIDE MR RABIN HAD TO TAKE DOMESTIC CONCERNS INTO ACCOUNT WHILE MR PERES THE ISRAELI FOREIGN MINISTER SPOKE ELOQUENTLY OF THINGS THAT COULD BE MR RABIN IN MORE SOLEMN REMARKS TALKED ABOUT THE BLOODY LEGACY OF THE PAST HE MADE CLEAR THAT MAKING PEACE WITH THE PLO CHIEF WHOM ISRAEL CONSIDERED A TERRORIST WAS NOT SO EASY MR RABIN A GRAYING WARRIOR WHO FOUGHT IN EVERY ARABISRAELI WAR SINCE THE STATE'S FOUNDING IN 1948 USED THE OCCASION TO EVOKE THE MEMORY OF THE COUNTLESS WAR DEAD FROM THE ARABISRAELI DISPUTE BUT HE STRESSED WE THE SOLDIERS WHO HAVE RETURNED FROM BATTLES STAINED WITH BLOOD WE WHO HAVE FOUGHT AGAINST YOU THE PALESTINIANS WE SAY TO YOU TODAY IN A LOUD AND A CLEAR VOICE ENOUGH OF BLOOD AND TEARS ENOUGH 9309140075 930914 BUSINESS BRIEF ASSOCIATED NATURAL GAS CORP CONCERN IS TO BUY GAS ASSETS FROM ENDEVCO NOTEHOLDERS ASSOCIATED NATURAL GAS CORP DENVER SAID IT SIGNED A DEFINITIVE AGREEMENT WITH ENDEVCO INC NOTEHOLDERS TO BUY FOUR NATURALGAS PIPELINE SYSTEMS AND CERTAIN CONTRACTUAL GASSTORAGE RIGHTS FOR 325 MILLION AFTER THE ASSETS ARE TRANSFERRED TO THE NOTEHOLDERS THE ASSETS ARE TO BE TRANSFERRED TO THE NOTEHOLDERS ON CONFIRMATION OF ENDEVCO'S PREPACKAGED CHAPTER 11 BANKRUPTCYLAW REORGANIZATION PLAN INCLUDED IN THE TRANSACTION FIRST DISCLOSED LAST MONTH ARE PIPELINES AND GASGATHERING SYSTEMS IN LOUISIANA ARKANSAS AND MISSISSIPPI AND STORAGE RIGHTS FOR AS MUCH AS 300 BILLION BRITISH THERMAL UNITS IN A HATTIESBURG MISS FACILITY 9309140074 930914 LETTERS TO THE EDITOR CHICAGO TAKES ON THE MANDATE MONSTER I READ WITH ENTHUSIASM MATTHEW REES'S AUG 18 EDITORIAL PAGE ARTICLE THE MANDATE MILLSTONE MAYOR RICHARD M DALEY HERE IN CHICAGO HAS BEEN CONCERNED FOR SOME TIME ABOUT THE IMPACT THAT UNFUNDED FEDERAL MANDATES AND BURDENSOME REGULATIONS HAVE HAD ON THE CITY'S ABILITY TO MEET ITS RESIDENTS' BASIC AND OTHER PRIORITY NEEDS WHILE CONTROLLING THE COSTS OF LOCAL GOVERNMENT LAST FALL HE COMMISSIONED A STUDY PUTTING FEDERALISM TO WORK FOR AMERICA WHICH TRACED THE HISTORY OF THE PROBLEM AND SOUGHT TO QUANTIFY ITS COSTS TO LOCAL GOVERNMENTS USING CHICAGO AS AN EXAMPLE IT IS HEARTENING TO KNOW AS MR REES POINTS OUT THAT A NEAR CRITICAL MASS OF OPPOSITION HAS BEEN REACHED ON THE ISSUE OF UNFUNDED FEDERAL MANDATES HOWEVER THE FACT REMAINS THAT FEW INDIVIDUALS CAN DEFINE LET ALONE APPRECIATE AN UNFUNDED MANDATE AND ITS IMPACT ON THEIR LOCAL TAXES AND SERVICES ENGAGING IN A PUBLIC EDUCATION CAMPAIGN IN ORDER TO GARNER SUPPORT ON THIS ISSUE WILL BE THE FIRST ORDER OF WORK FOR THE UNITED STATES CONFERENCE OF MAYORS TASK FORCE ON UNFUNDED MANDATES WHICH IS CHAIRED BY MAYOR DALEY THE CONFERENCE WITH THE HELP OF PRICE WATERHOUSE IS GATHERING DATA TO ESTIMATE CONSERVATIVELY FOR ITS MEMBER CITIES THE ANNUAL COST OF MEETING UNFUNDED FEDERAL MANDATES THE ULTIMATE GOAL IS OF COURSE TO SEE THAT THE FEDERAL GOVERNMENT CEASE THE PRACTICE THROUGH THE IMPOSITION OF UNFUNDED MANDATES OF DICTATING THE PRIORITIES FOR AND SPENDING THE LOCAL TAXES OF LOCAL GOVERNMENTS AND THEIR RESIDENTS 9309140073 930914 MATERNITYWEAR IPO HAS PRICING PROBLEM BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DON'T PUT TOO MANY PEAS IN THIS POD A PEA IN THE POD A MATERNITYWEAR RETAILER PLANNING TO GO PUBLIC THIS MONTH SEEMS TO BE ON WOBBLY GROUND BECAUSE A SIMILAR NEW STOCK TOOK A DIVE LAST WEEK CALL IT THE METOO SYNDROME THE UPS AND DOWNS OF BRINGING A NEW STOCK TO MARKET ARE PARTICULARLY EVIDENT TO HUNDREDS OF COMPANIES THAT SEE A COMPETITOR SUCCESSFULLY SELL SHARES THEN RUSH TO CLIMB ON THE GRAVY TRAIN IN TODAY'S IPO MARKET INVESTORS CAN TAKE A STOCK'S PRICE ON A ROUND TRIP WITHIN MONTHS DAMPING THE HIGH HOPES OF SIMILAR WOULDBE IPOS IF A COMPANY PRICES OFF A PEER IT ALWAYS HAS THE RISK OF THE PEER TANKING SAYS CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT COMPANY BALESTRA CAPITAL AND PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER NOW A PEA IN THE POD HAS A PRICING PROBLEM IT COULD END UP CUTTING ITS PRICE RANGE BY MAYBE 35 A PEA IN THE POD AN IRVING TEXAS RETAILER OF UPSCALE MATERNITY CLOTHING MADE PLANS TO GO PUBLIC IN THE WAKE OF WHAT APPEARED TO BE A HIGHLY SUCCESSFUL PUBLIC LAUNCH FOR ANOTHER MATERNITYWEAR COMPANY MOTHERS WORK OF PHILADELPHIA WATCHING MOTHERS WORK SHARES SKYROCKET A PEA IN THE POD ENVISIONED A PREMIUM PRICE FOR ITS PLANNED IPO ANALYSTS SAY BUT LAST WEEK MOTHERS WORK DROPPED 23 IN ONE DAY NOW ANALYSTS AND MONEY MANAGERS ARE SPECULATING THAT MOTHERS WORK'S PLUNGE WILL FORCE A PEA IN THE POD TO SCALE BACK ITS AMBITIOUS PLANS MOTHERS WORK WHICH WENT PUBLIC ON THE NASDAQ MARKET IN MARCH AT 13 HAS TRADED AS HIGH AS 2275 AND NOW IS BACK DOWN TO 13 UNCHANGED YESTERDAY A PEA IN THE POD WHOSE MANAGEMENT IS JUST BEGINNING TO TRAVEL ACROSS THE COUNTRY TO TELL INVESTORS ABOUT THE PLANNED OFFERING COULD BE HURT ANY BAD NEWS FOR THIS IPO COULD SEND SHUDDERS THROUGH THE RANKS OF SMALL COMPANIES TRYING TO HITCH THEIR IPOS TO OTHER OFFERINGS FOR EXAMPLE TWO SMALL WOMEN'S APPAREL COMPANIES RECENTLY FILED TO GO PUBLIC ON THE COATTAILS OF DONNA KARAN'S PLANNED OFFERING OF 11 MILLION SHARES AT 15 TO 17 EACH SAYS INVESTMENT DEALERS' DIGEST'S NEWSLETTER THE IPO REPORTER BOTH DM MANAGEMENT CO WHICH PROVIDES APPAREL AND ACCESSORIES THROUGH ITS CATALOG AND MAIL ORDER SERVICES BASED IN HINGHAM MASS AND FOOTWEAR MAKER STEVEN MADDEN LTD OF NEW YORK RECENTLY FILED OFFERING DOCUMENTS A PEA IN THE POD FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 1560000 SHARES BETWEEN 13 AND 15 EACH THAT ASSIGNS THE STOCK A STEEP MULTIPLE OF 42 TIMES EARNINGS BASED ON THE MIDPOINT PRICE AND ON LAST YEAR'S EARNINGS OF 33 CENTS A SHARE BEFORE EXTRAORDINARY ITEMS AND AN ACCOUNTING CHANGE ANALYSTS ESTIMATE THE COMPANY'S EARNINGS CAN GROW TO 49 CENTS A SHARE FOR THE YEAR ENDING IN JANUARY WHICH WOULD GIVE THE STOCK A MULTIPLE OF 29 WHEN A PEA IN THE POD FILED ITS MARKETING DOCUMENT LAST MONTH MOTHERS WORK SHARES WERE TRADING AROUND 19 TO 20 AND THE STOCK WAS VALUED AT 34 TIMES ANALYSTS' EARNINGS ESTIMATES OF 58 CENTS A SHARE FOR THE YEAR ENDING THIS MONTH BUT LAST WEEK MOTHERS WORK SAID SAMESTORE SALES OR SALES IN STORES OPEN AT LEAST A YEAR FELL 179 IN AUGUST FROM A YEAR EARLIER BECAUSE OF ECONOMIC MALAISE AND UNSEASONABLY HOT WEATHER THE STOCK'S VALUATION PLUNGED TO A MULTIPLE OF 23 FOR THIS YEAR INVESTORS AREN'T THE ONLY ONES WHO BAILED OUT THE COMPANY'S LEAD UNDERWRITER WHEAT FIRST BUTCHER & SINGER LOWERED ITS SHORTTERM INVESTMENT RATING ON MOTHERS WORK TO SELL FROM BUY EVEN THOUGH IT MAINTAINED ITS LONGTERM BUY RATING THE BROKERAGE HOUSE ALSO CUT ITS FISCAL 1993 ESTIMATE TO 48 CENTS A SHARE FROM 58 CENTS A SHARE OF THE STOCK BEING OFFERED 1060000 SHARES OF A PEA IN THE POD ARE BEING SOLD BY INSIDERS THAT'S NEARLY 68 OF THE OFFERING MOTHERS WORK ALSO SOLD A LARGE AMOUNT OF STOCK INSIDERS SOLD ABOUT 40 OF A 1250000SHARE OFFERING WHEN ASKED TO COMPARE ITS RESULTS TO THOSE OF MOTHERS WORK A PEA IN THE POD'S MANAGEMENT TOLD THE AUDIENCE AT THE ROBERTSON STEPHENS CONSUMER CONFERENCE LAST WEEK THAT THE TWO COMPANIES AREN'T DIRECTLY COMPARABLE BUT DIDN'T ELABORATE ROBERTSON STEPHENS & CO IS THE LEAD MANAGER OF THE PLANNED OFFERING BECAUSE A PEA IN THE POD HAS FILED A REGISTRATION STATEMENT WITH THE SEC IT CAN'T DIVULGE PROJECTED NUMBERS BUT SAID COMPARABLESTORE SALES FOR AUGUST ARE POSITIVE ADDED LOUELLA HUNDT VICE PRESIDENT OF MERCHANDISING AND MARKETING WE DON'T SEE A DRAMATIC DIFFERENCE IN SEASONS A PEA IN THE POD STILL HAS A CHANCE TO HIT THE MARKET WITH SOME PIZAZZ WHEN ANOTHER COMPANY IN THE SAME BUSINESS HAS TROUBLE IT COULD KNOCK THE PRICE DOWN OF THE PENDING IPO SAYS LINDA KILLIAN A NEWISSUES ANALYST WITH RENAISSANCE CAPITAL CORP IN GREENWICH CONN WHO RECOMMENDS THE OFFERING BUT THIS IS A COMPANY WITH VERY CONSISTENT HIGH GROWTH IT COULD BE AN EVEN BETTER BUY AT A LOWER PRICE FOR THE FISCAL FIRST HALF A PEA IN THE POD HAD COMPARABLESTORE NET SALES GROWTH OF 94 SHE SAYS WORKING WOMEN ARE STAYING ON THE JOB LATER INTO THEIR PREGNANCIES AND NEED TO LOOK GOOD IT LOOKS SOLID SO I'M KEEPING MY EYE ON THIS COMPANY SAYS SCOTT SCHOELZEL MANAGER OF FOUNDERS ASSET MANAGEMENT'S GROWTH FUND IN DENVER MR SCHOELZEL SAID HIS WIFE WHO IS PREGNANT WITH THEIR THIRD CHILD REQUESTED NEW CLOTHES FROM A LOCAL A PEA IN THE POD STORE WITH NEW STORES OPENING IT LOOKS LIKE THE COMPANY CAN GROW EARNINGS AT A 30 RATE 9309140072 930914 INTERNATIONAL BRIEF DALGETY PLC FISCALYEAR PRETAX PROFIT EDGED UP DESPITE A CHARGE UK FOOD GROUP DALGETY PLC REPORTED A SLIGHT RISE IN ITS PRETAX PROFIT FOR ITS YEAR ENDED JUNE 30 AFTER A CHARGE SUBTRACTED 9 MILLION 14 MILLION FROM THE RESULT PRETAX PROFIT ROSE TO 1122 MILLION FROM 1116 MILLION SALES CLIMBED 12 TO 453 BILLION FROM 404 BILLION ON AN OPERATING BASIS DALGETY'S PROFIT ROSE 62 TO 1304 MILLION THE CHARGE WAS RELATED TO CLARKSON PUCKLE AN INSURANCE BROKERAGE GROUP DALGETY SOLD IN 1987 THE CHARGE COVERS REMAINING CLAIMS AND LEGAL FEES THAT AROSE FROM THAT SALE ATTRIBUTABLE PROFIT FOR THE YEAR DROPPED SLIGHTLY TO 814 MILLION FROM 823 MILLION STRONG GROWTH IN THE COMPANY'S AGRIBUSINESS AND FOOD MANUFACTURING UNITS HELPED OFFSET A SHARP FALL IN OPERATING PROFITS FROM THE FOOD INGREDIENTS DIVISION 9309140071 930914 BUSINESS BRIEF EXXON CORP TEJAS GAS AGREES TO ACQUIRE PIPELINE SYSTEMS FROM FIRM TEJAS GAS CORP SAID IT SIGNED A DEFINITIVE AGREEMENT WITH EXXON CORP TO BUY SUBSTANTIALLY ALL OF EXXON'S TEXAS AND LOUISIANA NATURALGAS PIPELINE SYSTEMS FOR 380 MILLION THE TRANSACTION FIRST DISCLOSED IN EARLY MAY WILL INCREASE TEJAS'S PIPELINE SYSTEM BY 68 OR 2200 MILES THE TRANSACTION IS SET TO CLOSE TOMORROW HALF OF THE 136 PEOPLE EMPLOYED BY THE EXXON OPERATIONS WILL BE RETAINED BY TEJAS WITH MOST OF THE REST BEING PLACED ELSEWHERE WITHIN EXXON THE COMPANIES SAID OTHERS WILL BE OFFERED A SEVERANCE PACKAGE TEJAS BASED IN HOUSTON SAID IT WILL BORROW THE FUNDS TO PAY FOR THE TRANSACTION WITH MOST COMING FROM NEWLY ESTABLISHED LINES OF CREDIT WITH A CONSORTIUM OF BANKS LED BY BANK OF MONTREAL CANADIAN IMPERIAL BANK OF COMMERCE AND CITIBANK 9309140070 930914 BUSINESS BRIEF PROCTER & GAMBLE CO PHARMACEUTICALS SUBSIDIARY TO MOVE ELIMINATE 155 JOBS PROCTER & GAMBLE CO IN A COSTCUTTING MOVE SAID ITS PROCTER & GAMBLE PHARMACEUTICALS UNIT WILL MOVE MOST OF ITS COMMERCIAL OPERATIONS FROM NORWICH NY TO CINCINNATI WHERE THE PARENT IS BASED THE UNIT WILL CUT 155 JOBS OR 97 OF THE UNIT'S US WORK FORCE AS A RESULT THE UNIT NOW HAS ABOUT 1600 US WORKERS INCLUDING ABOUT 1100 IN NORWICH ABOUT 100 IN CINCINNATI AND THE REST IN FIELD SALES IN THE MOVE 165 WORKERS WILL TRANSFER TO CINCINNATI AND 800 WORKERS WILL REMAIN IN NORWICH THE MOVE EXPECTED TO BE COMPLETE BY SEPTEMBER 1994 WILL MAKE CINCINNATI THE HUB OF P&G'S HEALTH CARE PRODUCTS NETWORK P&G SAID NORWICH WILL REMAIN THE HEADQUARTERS FOR PRODUCT DEVELOPMENT FOR P&G'S PRESCRIPTION DRUG BUSINESS OF THE 800 REMAINING WORKERS IN NORWICH ABOUT 250 ARE INVOLVED IN PRODUCT DEVELOPMENT THAT NUMBER WILL DOUBLE TO 500 BY THE YEAR 2000 P&G SAID PROCTER & GAMBLE IS A DIVERSIFIED MAKER OF HOUSEHOLD PRODUCTS 9309140069 930914 FIVE CHARITABLE AGENCIES JOIN IN WORKPLACE APPEAL NEW YORK FIVE CHARITABLE FEDERATIONS HAVE BANDED TOGETHER TO OFFER MORE CHOICES TO WORKPLACE DONORS IN A MOVE THAT MAY INTENSIFY COMPETITION WITH LOCAL UNITED WAY CAMPAIGNS THE NEW COUNCIL OF FEDERATIONS REPRESENTS SOME 500 AGENCIES IN FIELDS SUCH AS CIVIL RIGHTS INTERNATIONAL AID AND THE ENVIRONMENT IT HOPES THE INCREASED OPTIONS POTENTIALLY WILL BOOST OVERALL DONATIONS BY AT LEAST 1 BILLION ANNUALLY IN THE 199293 DRIVE UNITED WAY CAMPAIGNS RAISED 304 BILLION DOWN 41 FROM A YEAR EARLIER THE COUNCIL INCLUDES THE NATIONAL ALLIANCE FOR CHOICE IN GIVING COMBINED HEALTH APPEAL OF AMERICA NATIONAL/UNITED SERVICE AGENCIES INTERNATIONAL SERVICE AGENCIES AND EARTH SHARE THE UNITED WAY OF AMERICA NOTES ITS RESEARCH SHOWS THAT 84 OF PEOPLE WANT DONORCHOICE OPTIONS WHICH ALLOW THEM TO DESIGNATE THE RECIPIENT OF THEIR DONATION BUT ONLY ABOUT 17 CHOOSE ONE AGENCY OVER THE FEDERATED APPEAL UNITED WAYS TRADITIONALLY FOCUS ON HEALTH AND HUMAN SERVICE AGENCIES THE GROUP PLANS A WORKSHOP WITH CORPORATE EXECUTIVES IN NEW YORK THIS WEEK TO LAY GROUNDWORK FOR ITS APPEAL EXPECTED TO TAKE HOLD NEXT FALL 9309140068 930914 CONTINENTAL AIR TO OFFER NOFRILLS SERVICE ON OCT 1 HOUSTON CONTINENTAL AIRLINES INC SAID IT PLANS TO OFFER SHORTHAUL NOMEALS SERVICE ON MORE THAN 50 ROUTES STARTING OCT CONTINENTAL HAS SAID IT WILL TEST LOWFARE SERVICE CALLED PEANUTS FARES IN CERTAIN EAST COAST ROUTES TO SUCH CITIES AS ATLANTA CLEVELAND BALTIMORE AND NEWARK CONTINTENTAL SAID IT WILL ACCOMPANY THE FLIGHTS WITH AN ADD A PENNY ADD A PAL DISCOUNT OFFER WHICH ALLOWS CUSTOMERS ON THE NOMEALS SYSTEM TO BUY A COMPANION'S TICKET FOR ONE CENT THE WEB OF CITIES AFFECTED WILL CREATE A MINIROUTE SYSTEM INDEPENDENT OF CONTINENTAL'S HUBANDSPOKE SYSTEM CONTINENTAL'S NOFRILLS FARES ARE DISCOUNTED BY 50 TO 80 FROM THE TYPICAL FULL FARES ON AFFECTED ROUTES FOR EXAMPLE THE PEANUTS FARE ON THE NONSTOP JACKSONVILLE FLANORFOLK VA ROUTE IS 99 ONEWAY COMPARED WITH THE INDUSTRY'S TYPICAL FULL FARE OF 336 THE SPECIAL FARES DON'T REQUIRE AN ADVANCE PURCHASE AND ARE REFUNDABLE WITHOUT A PENALTY THE PROMOTION IS MEANT TO COMPETE WITH THE INDUSTRY'S PERENNIAL MONEYMAKER SOUTHWEST AIRLINES THE NEW NONSTOP AND ONESTOP FLIGHTS WILL ADD 108 DAILY DEPARTURES TO CONTINENTAL'S SCHEDULE OF 2000 FLIGHTS 9309140067 930914 BUSINESS BRIEF ELJER INDUSTRIES INC COURT REDUCES DAMAGES TO BE PAID TO DEVELOPER A STATE COURT JUDGE IN SAN DIEGO REDUCED THE PUNITIVE DAMAGES THREE MANUFACTURERS OF A DEFECTIVE PLUMBING SYSTEM WERE ORDERED TO PAY TO A DEVELOPER TO 2 MILLION FROM 48 MILLION THE JUDGE ALSO GRANTED A MOTION BY ELJER INDUSTRIES INC IN DALLAS ITS US BRASS CORP UNIT SHELL OIL CO A UNIT OF THE NETHERLANDS' ROYAL DUTCH/SHELL GROUP AND HOECHST CELANESE CORP A UNIT OF GERMANY'S HOECHST AG FOR A NEW TRIAL IF COLES DEVELOPMENT CO THE DEVELOPER DOESN'T ACCEPT THE REDUCED AWARD ELJER'S SHARE OF THE REDUCED DAMAGES HASN'T BEEN DETERMINED THE PLUMBING PRODUCTS MAKER SAID THE ORIGINAL PUNITIVE DAMAGE AWARD ASSESSED AGAINST ELJER AND ITS US BRASS UNIT AT THE END OF THE APRIL TRIAL WAS 31 MILLION SHELL'S SHARE WAS ORIGINALLY 359 MILLION AND HOECHST CELANESE'S WAS 9 MILLION ELJER SAID THE PUNITIVE DAMAGES AND ITS PORTION OF THE 24 MILLION IN ESTIMATED ATTORNEY FEES AND RELATED COSTS INCURRED BY THE HOMEOWNERS IN THE CASE MIGHTN'T BE COVERED BY ITS INSURANCE 9309140066 930914 MARKETING & MEDIA BLOCKBUSTER ENTERTAINMENT AIDS MERGER OF REPUBLIC PICTURES SPELLING GROUP BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES BLOCKBUSTER ENTERTAINMENT CORP INCREASED ITS HOLLYWOOD CLOUT BY ENGINEERING A MERGER BETWEEN TWO TELEVISION AND MOVIE COMPANIES IN WHICH IT ALREADY HELD LARGE STAKES SPELLING ENTERTAINMENT GROUP INC AND REPUBLIC PICTURES CORP THE TWO COMPANIES AGREED TO MERGE IN A TRANSACTION STRUCTURED SO THAT SPELLING WOULD ACQUIRE ALL OF REPUBLIC'S SHARES FOR 13 IN CASH A SHARE OR ABOUT 100 MILLION BLOCKBUSTER FORT LAUDERDALE FLA WOULD FUND THE TRANSACTION BY ACQUIRING 134 MILLION NEWLY ISSUED SPELLING SHARES FOR ABOUT 100 MILLION IN EITHER CASH OR BLOCKBUSTER STOCK RUSSELL GOLDSMITH REPUBLIC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WOULD BECOME PRESIDENT AND CHIEF EXECUTIVE OF THE NEW COMPANY BLOCKBUSTER BY FAR THE NATION'S LARGEST HOME VIDEO RETAILER WITH NEARLY 3500 STORES WORLDWIDE WOULD OWN ABOUT 705 OF THE NEW COMPANY WHOSE NAME HASN'T BEEN DETERMINED YET ITS EXECUTIVE COMMITTEE WOULD CONSIST OF MR GOLDSMITH SPELLING VICE CHAIRMAN AARON SPELLING AND BLOCKBUSTER CHAIRMAN H WAYNE HUIZENGA AND PRESIDENT STEVEN R BERRARD SOME QUESTIONED WHETHER THE PRICE FOR REPUBLIC WAS HIGH ENOUGH IN THIS ERA OF GROWING VALUE FOR COPYRIGHT HOLDERS OF ENTERTAINMENT PRODUCTS THIS DOESN'T STAND OUT AS A PARTICULARLY GENEROUS DEAL FROM REPUBLIC'S STANDPOINT IT SEEMS A BIT ON THE SCANT SIDE SAID MICHAEL METZ AN ANALYST FOR OPPENHEIMER & CO BUT IN AN INTERVIEW MR GOLDSMITH SAID REPUBLIC NEEDED EFFICIENCIES OF SCALE TO GROW PERHAPS EXPANDING INTO FILM TELEVISION AND MADEFORVIDEO PRODUCTION ALSO REPUBLIC'S STOCK PRICE HAS NEARLY DOUBLED SINCE BLOCKBUSTER BOUGHT ITS STAKE IN JANUARY MR GOLDSMITH HAD A LARGE MEASURE OF CONTROL OVER THE TRANSACTION BECAUSE HE AND HIS FATHER BRAM GOLDSMITH CHAIRMAN OF CITY NATIONAL CORP OWNED ABOUT 10 OF THE VOTING SHARES OF THE COMPANY BEFORE THE INITIAL BLOCKBUSTER PURCHASE IN NATIONAL OVERTHECOUNTER TRADING REPUBLIC SHARES CLOSED AT 1250 DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE TRADING SPELLING SHARES CLOSED AT 8 UP 125 CENTS BLOCKBUSTER SHARES CLOSED AT 27625 DOWN 1 THE NEW COMPANY WOULD CONTROL A FILM AND TV LIBRARY WITH 20000 HOURS OF PROGRAMMING AND BOAST A WORLDWIDE TELEVISION DISTRIBUTION SYSTEM SPELLING'S WORLDVISION UNIT REPUBLIC OWNS ABOUT 1400 FEATURE FILMS REPUBLIC ALSO OWNS MORE THAN 3000 EPISODES OF TV SERIES THAT HAD BEEN OWNED BY NBC BUT WHICH WERE SPUN OFF IN 1971 WHEN GOVERNMENT REGULATIONS CURTAILED THE MAJOR NETWORKS' ABILITY TO PRODUCE AND DISTRIBUTE SUCH PROGRAMMING VIRTUALLY ALL TELEVISION RIGHTS TO REPUBLIC'S LIBRARY BECOME AVAILABLE EARLY NEXT YEAR AND THEY PROBABLY WILL BE DISTRIBUTED BY THE NEW COMPANY WHEN BLOCKBUSTER PAID 25 MILLION LAST JANUARY FOR ABOUT 35 OF REPUBLIC IT CALLED THE MOVE A RESEARCH AND DEVELOPMENT EFFORT TO LEARN ABOUT MOVIE DISTRIBUTION IN MARCH BLOCKBUSTER ACQUIRED A CONTROLLING STAKE IN SPELLING IN A STOCK SWAP VALUED AT ABOUT 140 MILLION THE COMPANY HAD BEEN OWNED BY BUSINESS INTERESTS OF CINCINNATI FINANCIER CARL H LINDNER SPELLING OWNS ABOUT 600 FEATURE FILMS PLUS TV SERIES INCLUDING SOME PRODUCED BY MR SPELLING WHEN HE WAS THE KING OF HOURLONG TELEVISION PRODUCTION IN THE 1970S AND EARLY 1980S SPELLING HAS TELEVISION RIGHTS TO SOME FILMS PRODUCED BY CAROLCO PICTURES CO INCLUDING BASIC INSTINCT AND TERMINATOR 2 JUDGMENT DAY BLOCKBUSTER STILL LACKS MAJOR CAPABILITY IN THE PRODUCTION OF TV AND MOVIES BUT THE COMPANY HAS PLENTY OF CASH TO ACQUIRE SUCH PRODUCERS BLOCKBUSTER'S CURRENT POWER IN HOLLYWOOD IS REFLECTED BY THE FACT THAT MORE THAN 50 OF US MOVIE REVENUE COMES FROM HOME VIDEO DISCUSSIONS BETWEEN REPUBLIC AND SPELLING BEGAN LAST SPRING WERE SUSPENDED THEN REVIVED IN THE MIDDLE OF LAST WEEK AND HAMMERED OUT OVER THE WEEKEND ACCORDING TO INDIVIDUALS CLOSE TO THE SITUATION THE TRANSACTION IS EXPECTED TO BE COMPLETED IN JANUARY ALSO YESTERDAY RON LIGHTSTONE CHIEF OPERATING OFFICER OF SPELLING SAID HE WOULD RESIGN WITHOUT MENTIONING THE MERGER ANITA SHARPE IN ATLANTA CONTRIBUTED TO THIS ARTICLE