FOSTER'S BREWING GROUP OF MELBOURNE AUSTRALIA REPORTED THAT OPERATING PROFIT AFTER TAXES WAS 3103 MILLION AUSTRALIAN DOLLARS US2018 MILLION IN THE YEAR ENDED JUNE 30 COMPARED WITH A YEAREARLIER LOSS OF A9508 MILLION THE RESULTS INCLUDED AN UNUSUAL GAIN OF A46 MILLION COMPARED WITH AN UNUSUAL LOSS A YEAR EARLIER OF A121 BILLION SALES SLIPPED 38 TO A998 BILLION FROM A1037 BILLION THE DIVIDEND WAS DOUBLED TO SIX AUSTRALIAN CENTS A SHARE THE COMPANY SAID THAT ALTHOUGH IT IS ENCOURAGED BY SIGNS THAT ECONOMIC ACTIVITY IS MODERATELY IMPROVING IT DOESN'T ANTICIPATE SIGNIFICANT SHORTTERM IMPROVEMENT IN BEER VOLUMES IN ITS MAIN MARKETS OF AUSTRALIA BRITAIN AND CANADA IT ADDED THAT IT WILL MAINTAIN ITS STRATEGY OF SELLING NONCORE ASSETS CASH FLOWS FROM ASSET SALES TOTALED A648 MILLION FOR THE YEAR THE COMPANY SAID THIS YEAR AGAIN THE FOSTER'S BRAND ACHIEVED DOUBLEDIGIT GROWTH IN THE US AND WITH ENHANCED DISTRIBUTION AND SIGNIFICANT MARKETING SUPPORT THIS TREND SHOULD CONTINUE 9309140063 930914 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN SOUTH KOREA'S PROSECUTOR GENERAL RESIGNED AMID MOUNTING PUBLIC CRITICISM OF GOVERNMENT OFFICIALS SUSPECTED OF GETTING RICH THROUGH QUESTIONABLE MEANS PARK JONG CHUL THE SECOND SENIOR OFFICIAL TO RESIGN UNDER PRESSURE IN FOUR DAYS SAID HE WANTED TO GIVE THE PROSECUTION A CLEANER IMAGE BUT HE DENIED ANY WRONGDOING LAST WEEK MR PARK REPORTED ASSETS TOTALING 24 MILLION MAKING HIM THE FIFTH RICHEST OF ABOUT 50 SENIOR PROSECUTION OFFICIALS REQUIRED TO REGISTER THEIR WEALTH UNDER A NEW ETHICS LAW ABOUT 1100 SENIOR GOVERNMENT AND LEGISLATIVE OFFICIALS REGISTERED THEIR PERSONAL WEALTH WITH AUTHORITIES LAST WEEK AS PART OF PRESIDENT KIM YOUNG SAM'S ANTICORRUPTION CAMPAIGN MEANWHILE FOUR ARMY OFFICERS INCLUDING A MAJOR GENERAL AND A COLONEL WERE ARRESTED ON CHARGES OF TAKING 365000 IN BRIBES FROM CIVILIAN COMMUNICATIONS SUPPLIERS THE HEADS OF SIX ELECTRONICS FIRMS WHO ALLEGEDLY PROVIDED BRIBES OR PAYOFFS TO THE ARMY OFFICERS ALSO WERE CHARGED SWEDEN ONE OF THE STRONGEST CRITICS OF APARTHEID LIFTED ITS TRADE SANCTIONS AGAINST SOUTH AFRICA CITING PROGRESS AT DEMOCRACY TALKS AND PLANS FOR ALLRACE ELECTIONS NEXT APRIL THE SWEDISH GOVERNMENT BARRED TRADE WITH SOUTH AFRICA IN 1987 PART OF ITS CAMPAIGN AGAINST WHITE RULE THERE INVESTMENT SANCTIONS IMPOSED IN 1979 WILL REMAIN IN PLACE PENDING THE CREATION OF A PLANNED TRANSITIONAL COUNCIL WHICH WILL GIVE SOUTH AFRICA'S NONWHITES A VOICE IN GOVERNMENT FOR THE FIRST TIME NIGERIA'S NEW LEADERS DISSOLVED THE HUGE GOVERNING BOARD THAT CONTROLS THE COUNTRY'S OIL INDUSTRY STRIPPING AWAY THE TOP LAYER OF BUREAUCRACY IN AN INDUSTRY THAT HAS BEEN ACCUSED OF MISMANAGEMENT AND GRAFT THE BOARD SERVED AS A GOVERNMENT HOLDING COMPANY FOR STAKES IN OIL FIRMS BASED IN NIGERIA WHICH DERIVES 80 OF ITS REVENUE FROM OIL THE DUTIES OF THE BOARD WILL BE TAKEN OVER BY EXECUTIVES OF THE OIL COMPANIES CRITICS HAD ACCUSED THE PREVIOUS GOVERNMENT OF LYING ABOUT HOW MUCH OIL MONEY NIGERIA MADE SOME COMPLAINED THAT THE GOVERNMENT REFUSED TO ACCOUNT FOR AN ESTIMATED 2 BILLION WINDFALL WHEN PRICES SURGED DURING THE GULF WAR POLAND'S LABOR MINISTRY WILL OFFER JOB TRAINING COUPONS TO AN ESTIMATED 1000 UNEMPLOYED SCHOOL GRADUATES IN THE CENTRAL PLOCK PROVINCE THAT WILL ALLOW THEM TO ATTEND VOCATIONAL COURSES AT TRAINING INSTITUTIONS THE COUPONS EACH WORTH ABOUT 250 ARE PART OF A PROGRAM TO COUNTERACT UNEMPLOYMENT AND WILL BE INTRODUCED ON AN EXPERIMENTAL SCALE TO INCLUDE GRADUATES REGISTERED IN LABOR OFFICES SINCE JUNE 1 POLAND'S JOBLESS ROLLS ARE ESTIMATED TO HAVE GROWN BY 140000 PEOPLE IN AUGUST WITH UNEMPLOYMENT RATES RANGING FROM 68 IN KRAKOW PROVINCE TO A HIGH OF 283 IN NORTHWESTERN KOSZALIN PROVINCE A PROTEST BY UNEMPLOYED WORKERS BLOCKED ITALY'S MAIN NORTHSOUTH HIGHWAY NEAR FLORENCE WHILE ANOTHER DEMONSTRATION HALTED TRAFFIC NEAR THE SOUTHERN PORT OF CROTONE THE BLOCKADES CAME AS TALKS WERE TO BEGIN IN ROME TO SETTLE A WEEKLONG OCCUPATION BY LAIDOFF WORKERS AT A CROTONE CHEMICAL PLANT UNION LEADERS SAID THE ACTION AT CROTONE COULD HERALD A WAVE OF UNREST IN THE SOUTH WHERE UNEMPLOYMENT IS THREE TIMES THE NATIONAL AVERAGE AUSTRALIA IS EXPANDING ITS USE OF PLASTIC BANK NOTES WITH THE INTRODUCTION OF A NEW 10 AUSTRALIAN DOLLAR BILL NOV 1 THE RECYCLABLE NOTES OFFER EXTRA PROTECTION AGAINST COUNTERFEITING WHICH HAS BURGEONED WITH ADVANCES IN PHOTOCOPYING TECHNOLOGY THEY CAN INCORPORATE SUCH SAFETY FEATURES AS SEETHROUGH SECTIONS AND AREAS THAT CHANGE COLOR AS THE VIEWING ANGLE CHANGES IN JULY 1992 AUSTRALIA REPLACED ALL A5 NOTES WITH PLASTIC NOTES PLASTIC NOTES OF OTHER DENOMINATIONS WILL BE ISSUED OVER THE NEXT THREE YEARS THE EUROPEAN COMMUNITY'S AMBITIOUS RESCUE PACKAGE FOR STEELMAKERS IS EXPECTED TO BE DELAYED FOR TWO MONTHS BECAUSE THE EC COMMISSION HAS YET TO REACH AGREEMENT WITH SPAIN AND ITALY ON STATE SUBSIDIES THE CASES INVOLVING ITALY'S ILVA SPA AND SPAIN'S CORP DE LA SIDERURGIA INTEGRAL AREN'T LIKELY TO BE RESOLVED IN TIME FOR NEXT WEEK'S MEETING OF EC INDUSTRY MINISTERS THE MINISTERS WERE EXPECTED TO REACH AN AGREEMENT BASED ON THE COMMISSION'S RECOMMENDATIONS BUT THE COMMISSION WILL BE ABLE TO PROVIDE ONLY AN OUTLINE OF PROGRESS SO FAR THE STEEL RESTRUCTURING PACKAGE AIMS TO REDUCE SURPLUS STEEL CAPACITY ECWIDE BUT PRIVATESECTOR COMPANIES ARE RELUCTANT TO CUT BACK UNLESS GOVERNMENTS CURB SUBSIDIES TO UNPROFITABLE PUBLIC STEELMAKERS SEPARATELY THE COMMISSION IS SEEKING MORE INFORMATION ON A 146 MILLION BELGIAN GOVERNMENT LOAN TO STEELMAKER FORGES DE CLABECQ SA BEFORE DECIDING WHETHER THE AID CONFORMS WITH EC COMPETITION RULES CHINESE CUSTOMS OFFICIALS ARE OFFERING BIG REWARDS TO ENCOURAGE PEOPLE TO TURN IN SMUGGLERS INFORMERS CAN RECEIVE AS MUCH AS 10 OF THE VALUE OF THE SMUGGLED GOODS WITH A LIMIT OF ABOUT 17500 POLICE HEADQUARTERS IN OLONGAPO CITY PHILIPPINES HOME OF THE FORMER SUBIC BAY US NAVAL BASE LOST ITS PHONE CONNECTION FOR FAILING TO PAY ITS 71000 PHONE BILL EFFORTS TO REACH THE DEPARTMENT FOR COMMENT WERE UNSUCCESSFUL 9309140062 930914 BUSINESS BRIEF GREAT WESTERN FINANCIAL CORP CREDITCARD PORTFOLIO IS SOLD TO AFFILIATE OF FORD GROUP GREAT WESTERN FINANCIAL CORP SAID IT AGREED TO SELL ITS 222 MILLION CREDITCARD PORTFOLIO TO ASSOCIATES NATIONAL BANK AN AFFILIATE OF ASSOCIATES CORP OF NORTH AMERICA WHICH IS PART OF FORD MOTOR CO'S FINANCIALSERVICES GROUP TERMS OF THE DEAL WEREN'T DISCLOSED GREAT WESTERN SAID IT EXPECTS TO REALIZE A NET GAIN OF APPROXIMATELY 43 MILLION FROM THE TRANSACTION INCLUDING THE RECOVERY OF LOSS RESERVES THE CHATSWORTH CALIF BANK HOLDING COMPANY SAID IT EXPECTS TO COMPLETE THE DEAL IN SEPTEMBER THE MOVE WILL REDUCE EXPENSES FOR GREAT WESTERN WHILE MAINTAINING SERVICE TO CARD HOLDERS A GREAT WESTERN SPOKESMAN SAID THE BANK'S CREDITCARD OPERATIONS WERE RELATIVELY SMALL HE SAID AND TO BE REALLY COMPETITIVE YOU NEED LARGE ECONOMIES OF SCALE GREAT WESTERN SAID IT WILL CONTINUE TO ISSUE CREDITCARD APPLICATIONS THROUGH ITS BRANCHES BUT GREAT WESTERN CARDS WILL BE ISSUED AND SERVICED BY ASSOCIATES NATIONAL BANK ASSOCIATES NATIONAL BANK IS A LARGE ISSUER OF VISA AND MASTERCARD CREDIT CARDS IN THE US WITH ABOUT 33 MILLION ACCOUNTS AND 26 BILLION IN RECEIVABLES 9309140061 930914 INTERNATIONAL BRIEF FLETCHER CHALLENGE LTD FIRM SEES FURTHER PROGRESS IN REDUCING ITS DEBT LOAD NEW ZEALANDBASED FORESTRY AND RESOURCES CONCERN FLETCHER CHALLENGE LTD SAID IT IS AIMING TO REDUCE ITS DEBT FURTHER IN THEIR ANNUAL REPORT TO SHAREHOLDERS FLETCHER'S DIRECTORS NOTED THAT DEBT AS A PERCENTAGE OF THE COMPANY'S TOTAL CAPITALIZATION FELL TO 514 AT JUNE 30 FROM 591 A YEAR EARLIER SINCE THE END OF THE FINANCIAL YEAR WE HAVE MADE FURTHER PROGRESS AND WILL ACHIEVE OUR TARGET OF 50 BEFORE THE END OF CALENDAR 1993 THE DIRECTORS SAID WE WILL BE AIMING FOR FURTHER IMPROVEMENT IN FUTURE THEY ADDED DURING ITS LATEST FISCAL YEAR FLETCHER'S LIABILITIES FELL TO 108 BILLION NEW ZEALAND DOLLARS US596 BILLION FROM NZ154 BILLION A YEAR EARLIER BANK FUNDING COSTS FELL TO NZ1062 MILLION FROM NZ2432 MILLION A YEAR EARLIER SEPARATELY FLETCHER CHALLENGE SAID IT EXPECTS TO DECIDE BY THE END OF 1993 IF IT WILL LIST ITS SHARES ON THE US MARKET 9309140060 930914 MELLON BANK FILES LAWSUIT OVER BOSTON CO PRIMERICA'S SMITH BARNEY IS ACCUSED OF DIVERTING MUTUALFUND BUSINESS BY GABRIELLA STERN AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL MELLON BANK CORP SUED BROKERAGE GIANT SMITH BARNEY SHEARSON INC ACCUSING IT OF DIVERTING MUTUALFUND BUSINESS FROM BOSTON CO WHICH MELLON ACQUIRED FOR 145 BILLION EARLIER THIS YEAR THE SUIT FILED IN US DISTRICT COURT IN PITTSBURGH CONTENDS THAT SMITH BARNEY SHEARSON AND ITS PARENT PRIMERICA CORP HAVE SET UP MUTUAL FUNDS THAT ARE CLONES OR REPLICAS OF FUNDS THAT BOSTON CO ADMINISTERS FOR SHEARSON THIS VIOLATES A NONCOMPETE AGREEMENT THAT WAS PART OF PRIMERICA'S 115 BILLION ACQUISITION OF SHEARSON FROM AMERICAN EXPRESS CO ANNOUNCED IN MARCH THE SUIT CLAIMS MELLON SAYS THAT WHEN IT AGREED TO ACQUIRE BOSTON CO FROM SHEARSON THERE WAS THE SPECIFIC CONDITION THAT THE MONEYMANAGEMENT COMPANY CONTINUE TO ADMINISTER THE SHEARSON FUNDS THE FUNDS ACCOUNT FOR MOST OF BOSTON CO'S MUTUALFUND SERVICING REVENUE OF 170 MILLION A YEAR INVESTOR CONCERNS ABOUT THE POTENTIAL LOSS OF THE SHEARSON BUSINESS CAUSED MELLON'S STOCK TO PLUNGE 63 YESTERDAY TO 5625 OFF 375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MORE THAN ONE MILLION SHARES CHANGED HANDS JOHN A HEFFERN AN ANALYST WITH ALEX BROWN & SONS INC SAID LOSING THE SHEARSON BUSINESS COULD REDUCE MELLON'S FUTURE EARNINGS BY BETWEEN 22 CENTS A SHARE AND 40 CENTS A SHARE DEPENDING ON HOW QUICKLY MELLON CUTS EXPENSES IN THE FACE OF LOWER REVENUE MR HEFFERN LOWERED HIS RATING OF MELLON COMMON STOCK TO NEUTRAL FROM STRONG BUY MELLON PLAYED DOWN ANALYSTS' CONCERNS SAYING THAT BOSTON CO'S REVENUE FROM SHEARSON MUTUAL FUNDS 100 MILLION A YEAR REPRESENTS LESS THAN 4 OF MELLON'S EXPECTED 1993 ANNUAL REVENUE OF 26 BILLION SENIOR OFFICIALS AT PRIMERICA AND AMERICAN EXPRESS EXPRESSED SURPRISE AT THE SUIT SAYING MELLON OFFICIALS HADN'T WARNED THEM IT WAS COMING INDEED SOME SMITH BARNEY SHEARSON BANKERS HAD RECENTLY TALKED WITH MELLON EXECUTIVES ABOUT DOING SOME UNDERWRITING BUSINESS FOR THE BANK AND DIDN'T HEAR ANY GRIPES WALL STREET EXECUTIVES SAID IN A STATEMENT SMITH BARNEY SHEARSON SAID THE SUIT IS FACTUALLY INCORRECT AND WE BELIEVE IT IS WITHOUT MERIT SMITH BARNEY SHEARSON DECLINED TO ELABORATE ON ITS STATEMENT BUT PEOPLE FAMILIAR WITH THE FIRM SAID THEY BELIEVE THERE WAS NOTHING IN THE MELLON AGREEMENT THAT PREVENTS THE BROKERAGE FROM LAUNCHING ITS OWN FUNDS MERGING OTHER FUNDS WITH SHEARSON PORTFOLIOS AND PROVIDING CUSTODIAL SERVICES TO THE FUNDS THE MELLON SUIT ALLEGES THAT SMITH BARNEY SHEARSON IS ATTEMPTING TO INDUCE CURRENT AND NEW INVESTORS TO PUT MONEY IN THE NEW FUNDS INSTEAD OF THE EXISTING SHEARSON FUNDS MELLON ALSO HAS FILED A SEPARATE SUIT AGAINST AMERICAN EXPRESS AND ITS LEHMAN BROTHERS INC UNIT ALLEGING THAT BY SELLING SHEARSON TO PRIMERICA THEY INTERFERED WITH MELLON'S CONTRACT WITH SHEARSON A PERSON CLOSE TO MELLON ADDED THAT THE BANK BELIEVES AMERICAN EXPRESS AND LEHMAN OFFICIALS HAVE KNOWN FOR MONTHS OF SMITH BARNEY'S INTENTIONS TO MOVE ITS MUTUALFUND BUSINESS FROM BOSTON CO AMERICAN EXPRESS CALLED THE CHARGE ABSOLUTELY UNTRUE SMITH BARNEY SHEARSON THE NATION'S SECONDLARGEST BROKERAGE FIRM HAS TAKEN STEPS IN THE PAST SEVERAL WEEKS TO SEVER ITS TIES WITH LEHMAN BROTHERS FOR INSTANCE LAST MONTH IT PULLED OUT OF A PACT THAT CALLED FOR LEHMAN TO PROVIDE STOCK RESEARCH AND NEW STOCK AND BOND ISSUES TO THE NEW BROKERAGE GIANT FOR AS LONG AS TWO YEARS FRANK V CAHOUET MELLON'S CHAIRMAN SAID IN AN INTERVIEW THAT THE BANK ONLY LEARNED OF SMITH BARNEY SHEARSON'S ACTIVITIES IN THE PAST COUPLE WEEKS AND INITIATED DISCUSSIONS WITH TOP SMITH BARNEY OFFICIALS WE TALKED TO THEM ABOUT IT BUT WE GOT NO SATISFACTION SO WE DECIDED WE'D BETTER MOVE TO PROTECT OURSELVES MR CAHOUET SAID THE SUIT ISN'T THE FIRST HIGHPROFILE CONTROVERSY FOR THE 118YEAROLD BOSTON CO WHOSE BOSTON SAFE DEPOSIT & TRUST CO CATERS TO SOME OF THE NATION'S MOST WELLHEELED INVESTORS IN 1989 BOSTON CO FIRED ITS FORMER PRESIDENT JAMES N VON GERMETEN AFTER THE COMPANY CONCEDED THAT IT OVERSTATED PRETAX PROFIT BY 44 MILLION FOR THE FIRST NINE MONTHS OF 1988 9309140059 930914 MARKETING & MEDIA ADVERTISING AMERICAN GREETINGS TRIES AD IN NEWSCAST BY KEVIN GOLDMAN IF AMERICAN GREETINGS HAS ITS WAY A LOT OF LOCAL TV NEWS ANCHORS WILL BE SAYING HAPPY BIRTHDAY AS THEY PREPARE TO SAY GOODNIGHT DENISE DUFALA ANCHORWOMAN OF NEWSCENTER 8 ON WJW THE CBS AFFILIATE IN CLEVELAND IS A TRAILBLAZER OF SORTS EACH EVENING AS SHE WINDS UP HER 11 PM NEWSCAST SHE HOLDS UP AN AMERICAN GREETINGS CARD AND WISHES ONE MEMBER OF THE AUDIENCE A CHEERY HAPPY BIRTHDAY AS PART OF THE PROMOTION THE HONOREE GETS THE CARD AND AN AMERICAN BEAUTY ROSE MS DUFALA AND HER COANCHOR HAVE BEEN SIGNING OFF THIS WAY FOR ABOUT A YEAR AND THE PRACTICE IS RAISING HACKLES IN BROADCAST JOURNALISM CIRCLES WHERE SOME CRITICS BRAND IT A BLATANT EXAMPLE OF THE BLURRING OF THE LINE BETWEEN NEWS AND COMMERCIAL PROGRAMMING THE SEGMENT ISN'T LABELED AN ADVERTISEMENT EVEN THOUGH IT IS OBVIOUSLY NOT PART OF THE NEWSCAST IT OPENS WITH FOOTAGE OF A GREETING CARD OPENING TO SHOW THE NAME OF THAT NIGHT'S BIRTHDAY CELEBRANT IT ENDS WITH AMERICAN GREETINGS' RED ROSE LOGO WE'RE DEVELOPING PLANS TO TAKE THIS INTO OTHER MARKETS WITH CLEVELAND BEING THE PROTOTYPE SAYS TOM TRAYNOR DIRECTOR OF ADVERTISING AT AMERICAN GREETINGS BASED IN CLEVELAND ALTHOUGH THE PLAN IS TO HAVE LOCAL NEWS ANCHORS READ THE COPY HE CONCEDES THAT SOME STATIONS PROHIBIT THEIR ONAIR NEW TALENT FROM READING COMMERCIAL COPY THE AD IN A NEWSCAST IS ONLY ONE NONTRADITIONAL MARKETING GAMBIT BEING TRIED BY AMERICAN GREETINGS THE NO 2 COMPANY BEHIND HALLMARK CARDS IN AN INDUSTRY WITH 1992 SALES OF 53 BILLION ACCORDING TO THE GREETING CARD ASSOCIATION A WASHINGTON ORGANIZATION BEGINNING TONIGHT AMERICAN GREETINGS IS SPONSORING THE NIGHTLY CELEBRITYBIRTHDAY SEGMENT OF THE SYNDICATED SHOW ENTERTAINMENT TONIGHT THE COMPANY CREATED AN ANIMATED CHARACTER A BEAR TO SHOWCASE THE SEGMENT THE DEAL WITH ENTERTAINMENT TONIGHT PRODUCED BY PARAMOUNT COMMUNICATIONS IS A MULTIYEAR AGREEMENT IT IS SIMILAR TO A SPONSORSHIP THAT HALLMARK HAS WITH TODAY ON GENERAL ELECTRIC'S NBC NETWORK HALLMARK BASED IN KANSAS CITY MO SPONSORS EACH OF WEATHERMAN WILLARD SCOTT'S FOUR REPORTS WHERE HE SALUTES INDIVIDUALS MORE THAN 100 YEARS OLD CELEBRATING BIRTHDAYS THE CAMPAIGN STARTED IN OCTOBER 1991 EXCEEDED OUR EXPECTATIONS SAYS A HALLMARK SPOKESMAN THE IDEA HE SAYS WAS TO GET TOPOFTHEMIND AWARENESS WITH PEOPLE WANTING TO BUY GREETING CARDS IT ALSO REINFORCED THE NOTION OF HALLMARK AND BIRTHDAYS DESPITE THE SUCCESS HALLMARK IS DROPPING ITS SPONSORSHIP AT THE END OF SEPTEMBER IT'S TIME TO MOVE ON THE SPOKESMAN SAYS WITH MARKETING THE IDEA IS TO BE FIRST AND KEEP COMING UP WITH NEW PROMOTIONS AND WE HAVE A NEW IDEA HE DECLINES TO ELABORATE AMERICAN GREETINGS HAS A SIMILAR PURPOSE IN SPONSORING THE DAILY CELEBRITY TRIVIA SEGMENT ON ENTERTAINMENT TONIGHT WHICH WAS THE NO 5RATED SYNDICATED SHOW LAST WEEK ACCORDING TO AC NIELSEN WE WANT TO MAKE OUR COMPANY SYNONYMOUS WITH BIRTHDAYS SAYS MORRY WEISS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN GREETINGS THE COMPANY'S SLOGAN IS THE BIRTHDAY COMPANY MR WEISS SAYS IT ISN'T RISKY TO PIGEONHOLE AMERICAN GREETINGS INTO ONE SPECIAL DAY ABOUT 38 OF ITS SALES ARE FROM BIRTHDAYS AND IT'S CELEBRATED ALL YEAR LONG HE SAYS THE BIGGEST PROBLEM FOR BIRTHDAY CARDS ACCORDING TO MR WEISS IS FORGETFULNESS SO IT MAKES SENSE FOR AMERICAN GREETINGS' LOGO TO REMAIN ON THE TV SCREEN THROUGHOUT THE CELEBRITY BIRTHDAY SEGMENT AMERICAN GREETINGS HASN'T ADVERTISED IN A CONVENTIONAL WAY FOR NEARLY A DECADE IT'S MORE POWERFUL FOR US TO DO OUR ADVERTISING THIS WAY SAYS MR WEISS THE COMPANY IS ALSO DEVELOPING A SOFTWARE PROGRAM FOR ITS ANIMATED BIRTHDAY BEAR DESIGNED FOR COMPANIES THAT WANT TO SHOW THEY CARE THE CARTOON GREETING WILL POP UP ON EMPLOYEES' SCREENS ON THEIR BIRTHDAYS BUT AMERICAN GREETINGS REALLY HOPES TO REACH INDIVIDUAL COMMUNITIES AND RETAILERS WITH THE NEWSCAST PROMOTIONS THE COMPANY PAYS FOR A 15SECOND COMMERCIAL IN WHICH THE LOCAL NEWSCASTER BECOMES IN EFFECT A GREETINGCARD SPOKESMAN THIS ISN'T A PROBLEM FOR US SAYS PHYLLIS QUAIL WJW'S NEWS DIRECTOR EVERYONE ALWAYS CRITICIZES LOCAL NEWS FOR BEING TOO NEGATIVE HERE IS A NICE WAY TO CONCLUDE OUR NEWSCAST SHE ADDS WE DIDN'T ANALYZE THIS AND LOOK THROUGH ALL THE JOURNALISM BOOKS BUT DAVID BARTLETT PRESIDENT OF THE RADIOTELEVISION NEWS DIRECTORS ASSOCIATION SAYS I FIND IT TROUBLING THAT A NEWS ANCHOR IS READING A DISGUISED COMMERCIAL IT'S NOT A GOOD IDEA TO HAVE ANCHORS READ COMMERCIAL ANNOUNCEMENTS THOUGH MR BARTLETT SAYS MANY STATIONS REFUSE TO TAKE PART IN SUCH PRACTICES HE ADDS THERE ARE AS MANY POLICIES AS THERE ARE STATIONS AMERICAN GREETINGS IS UNACCUSTOMED TO ANYTHING THAT EVEN HINTS OF CONTROVERSY CLEARLY WE'RE NOT GOING TO ASK AN ANCHOR TO DO ANYTHING AGAINST STATION POLICY SAYS THE COMPANY'S MR TRAYNOR MAYBE WE WOULD JUST HIRE OUTSIDE TALENT OR HAVE THE STATION ANNOUNCER READ THE BIRTHDAY GREETING AND DOES MS DUFALA THE WJW ANCHORWOMAN HAVE A PROBLEM WITH READING THE GREETINGS NOT AT ALL SHE SAYS THE ONLY DIFFICULTY IS MAKING SURE WE PRONOUNCE EVERYONE'S NAME RIGHT LOOK IT'S ONLY A BIRTHDAY GREETING IT'S NOT LIKE ENDORSING A PRODUCT MASTERCARD INTERNATIONAL AND AMERICAN EXPRESS CO SETTLED THE LAWSUITS THEY HAD FILED AGAINST EACH OTHER IN MARCH OVER CORPORATE CARD AD CAMPAIGNS UNDER TERMS OF THE OUTOFCOURT SETTLEMENT WHICH WAS REACHED LAST WEEK AMERICAN EXPRESS WILL DISCONTINUE ITS PRINT ADS THAT BOASTED ITS CORPORATE CARD HAS NO HIDDEN AGENDAS AMERICAN EXPRESS SAID YESTERDAY IT WILL BEGIN A NEW PRINT CORPORATE CARD AD CAMPAIGN TOMORROW WITH THE TAG LINE IT'S ALL BUSINESS THE ADS ARE CREATED BY TASSANI & PAGLIA CHICAGO WHICH CREATED THE FIRST CORPORATE CAMPAIGN THE COMPANY SAID IT WILL SPEND MORE THAN 3 MILLION ON THE NEW ADS IN THE BALANCE OF THE YEAR EXLAX SANDOZ PHARAMACEUTICALS A UNIT OF SANDOZ CORP SAID IT IS LISTENING TO AGENCY PITCHES FOR ITS EXLAX LAXATIVE ACCOUNT CURRENTLY AT BLOOM FCA OF NEW YORK BILLINGS ARE ABOUT 8 MILLION ACCORDING TO COMPETITIVE MEDIA REPORTING BOB DONOVAN VICE PRESIDENT OF SANDOZ'S CONSUMER PRODUCT GROUP DECLINED TO IDENTIFY THE SHOPS INVOLVED HE SAID THE REST OF BLOOM'S SANDOZ BILLINGS WEREN'T AFFECTED WHO'S NEWS WIEDEN & KENNEDY THE PORTLAND ORE AD AGENCY NAMED JOHN C JAY TO THE POST OF CREATIVE DIRECTOR REPORTING TO AGENCY PRESIDENT DAN WIEDEN MR JAY WAS PREVIOUSLY SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT CATALOGER J CREW GROUP AND BEFORE THAT EXECUTIVE VICE PRESIDENT OF MARKETING AND CREATIVE SERVICES AT BLOOMINGDALE'S A UNIT OF FEDERATED DEPARTMENT STORES 9309140057 930914 BUSINESS BRIEF BOOZALLEN & HAMILTON INC CONSORTIUM LED BY FIRM WINS 5YEAR PACT FROM US BOOZALLEN & HAMILTON INC MCLEAN VA SAID A CONSORTIUM IT LEADS WON A CONTRACT VALUED AT AS MUCH AS 41 MILLION FROM A US AGENCY TO HELP PRIVATIZE CIVILIAN AND DEFENSE INDUSTRIES IN 11 NEWLY INDEPENDENT STATES IN THE FORMER SOVIET UNION THE FIVEYEAR CONTRACT WHICH INCLUDES A THREEYEAR BASE AND TWOYEAR OPTION WAS AWARDED BY THE US AGENCY FOR INTERNATIONAL DEVELOPMENT THE GROUP'S OTHER CORE MEMBERS ARE ERNST & YOUNG A NEW YORK ACCOUNTING FIRM PAINEWEBBER GROUP INC A NEW YORK INVESTMENT BANKING AND BROKERAGE FIRM AND THE WASHINGTON LAW FIRM OF STEPTOE & JOHNSON BOOZALLEN A MANAGEMENT AND TECHNOLOGY CONSULTING FIRM SAID THE GROUP WOULD HELP DEVELOP PRIVATIZATION POLICIES AND TRANSACTIONS AND HELP ENSURE THE COMMERCIAL VIABILITY OF THE PRIVATIZING ENTERPRISES 9309140056 930914 INTERNATIONAL BRIEF ARGENTARIA CORP BANCARIA DE ESPANA OFFERING OF 25 OF CAPITAL IS APPROVED BY GOVERNMENT SPAIN'S STATERUN BANKING GROUP ARGENTARIA CORP BANCARIA DE ESPANA SAID IT RECEIVED GOVERNMENT AUTHORIZATION TO FLOAT ANOTHER 25 OF ITS SHARE CAPITAL IN MAY ARGENTARIA COMPLETED A HIGHLY SUCCESSFUL INTERNATIONAL OFFERING OF 3136 MILLION SHARES REPRESENTING 25 OF ITS CAPITAL ARGENTARIA HAD EXPANDED THAT OFFER TO 25 FROM 22 AFTER THE OFFER WAS OVERSUBSCRIBED BY NEARLY SEVEN TIMES ARGENTARIA WILL WAIT AT LEAST SIX MONTHS AFTER ITS FIRST OFFERING BEFORE BEGINNING ANOTHER A BANK SPOKESMAN SAID THAT WOULD MAKE MIDNOVEMBER THE EARLIEST POSSIBLE DATE FOR THE NEW PLACEMENT THE SPANISH MEDIA QUOTED ARGENTARIA CHAIRMAN FRANCISCO LUZON AS SAYING THE NEW PLACEMENT WILL BE TWOPRONGED WITH DOMESTIC AND INTERNATIONAL TRANCHES MR LUZON SAID THE SECOND FLOTATION WILL ALLOW ARGENTARIA TO RESPOND TO THE INTEREST OF INVESTORS AND SMALL CLIENTS 9309140055 930914 BUSINESS BRIEF SAN DIEGO GAS & ELECTRIC CO UTILITY PANEL TENTATIVELY SET RETURN ON EQUITY FOR 1994 SAN DIEGO GAS & ELECTRIC CO SAID IT REACHED AN AGREEMENT WITH A DIVISION OF THE CALIFORNIA PUBLIC UTILITIES COMMISSION SPECIFYING A 1085 RETURN ON EQUITY FOR 1994 DOWN FROM THIS YEAR'S 1185 THE ANNUAL COST OF CAPITAL SETTLEMENT WOULD LOWER RATES FOR CONSUMERS BY LIMITING THE PROFIT FROM ENERGY USERS THE UTILITY IS ENTITLED TO MAKE THE COMMISSION IS EXPECTED TO DECIDE IN DECEMBER WHETHER TO APPROVE THE AGREEMENT THE MOVE IN PART PRECIPITATED A DEBT REVIEW FOR A POSSIBLE DOWNGRADE BY MOODY'S INVESTORS SERVICE INC WHICH ALSO CITED CONCERNS ABOUT CONSTRUCTION EXPENDITURES AND THE STATE OF THE ECONOMY MALYN MALQUIST VICE PRESIDENT AND TREASURER OF THE UTILITY SAID HE DISAGREED WITH THE MOODY'S ACTION SAYING A NUMBER OF THINGS NEXT YEAR WILL MORE THAN OFFSET THE CHANGE IN THE RETURN ON EQUITY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SAN DIEGO GAS SHARES CLOSED UNCHANGED AT 26875 9309140054 930914 WHAT'S NEWS WORLDWIDE THE ISRAELIS AND PLO SIGNED A PEACE ACCORD AT THE WHITE HOUSE ISRAELI PRIME MINISTER RABIN AND PLO CHIEF ARAFAT BROKE DECADESOLD TABOOS AND SHOOK HANDS TO CEMENT THE SIGNING OF THE LANDMARK PEACE PACT GRANTING PALESTINIAN AUTHORITY TO GOVERNINITIALLY IN GAZA AND JERICHO AND SOON AFTER IN MOST OF THE WEST BANK ENOUGH OF BLOOD AND TEARS ENOUGH RABIN SAID WITH EMOTION AND ARAFAT DECLARED THAT THE HISTORIC AGREEMENT SHOULD MARK THE END OF A CHAPTER OF PAIN AND SUFFERING THAT HAS LASTED THROUGHOUT THIS CENTURY IN THE OCCUPIED TERRITORIES PALESTINIANS DANCED IN THE STREETS BUT IN JORDAN AND SYRIA THEY TORE UP PICTURES OF ARAFAT TROOPS IN BEIRUT KILLED SEVEN PEOPLE AND WOUNDED 41 WHEN THEY FIRED ON PALESTINIANS PROTESTING THE PACT CLINTON EASED THE US TRADE EMBARGO ON VIETNAM CLEARING THE WAY FOR SOME US COMPANIES TO DO BUSINESS THERE THE WHITE HOUSE SAID US BUSINESSES WILL BE ALLOWED TO BID ON DEVELOPMENT PROJECTS FUNDED BY INTERNATIONAL LENDING AGENCIES US FIRMS WILL STILL BE BARRED FROM OTHER TRADE AND COMMERCIAL INTERESTS AMERICANS OVER AGE 65 COULD BE A LOT MORE LIKELY TO GET THEIR MEDICAL CARE FROM HEALTHMAINTENANCE ORGANIZATIONS IF CLINTON'S HEALTH PLAN IS ENACTED A DRAFT OF THE ADMINISTRATION'S PROPOSED HEALTHCARE BILL INCLUDES BROAD HINTS THAT THE WHITE HOUSE WANTS TO MOVE MORE OF THE ELDERLY INTO HMOS SERB ARTILLERY POUNDED THE CROATIAN TOWN OF KARLOVAC AS SERB REBEL FORCES PRESSED ON WITH A COUNTEROFFENSIVE IN DEFIANCE OF UN CEASEFIRE EFFORTS THE ATTACK ON KARLOVAC 30 MILES SOUTHWEST OF ZAGREB PROMPTED A WARNING FROM A SENIOR UN OFFICIAL IN BELGRADE THAT THE SHELLING OF CIVILIAN TARGETS WAS A GRAVE WAR CRIME SOUTH AFRICA'S PARLIAMENT CONVENED IN A SPECIAL SESSION TO BEGIN CONSIDERING LEGISLATION TO END WHITE RULE AND BLACK LEADER MANDELA PLEDGED TO ENDORSE LIFTING SANCTIONS ONCE THE LAWS ARE PASSED THE 11DAY SESSION IS EXPECTED TO PASS MEASURES GIVING BLACKS A ROLE IN RUNNING THE COUNTRY FOR THE FIRST TIME IN SOUTH AFRICAN HISTORY THE UN ACCUSED SOMALI GUNMEN LOYAL TO CLAN LEADER AIDID OF FIRING MORTARS INDISCRIMINATELY INTO A MOGADISHU HOSPITAL DURING A DAWN BATTLE WITH UN FORCES THREE US SOLDIERS WERE WOUNDED IN THE TWOHOUR CLASH NONE SERIOUSLY A SPOKESMAN FOR AIDID CLAIMED THAT AT LEAST 25 SOMALIS WERE KILLED AND MANY MORE WOUNDED EXILED PRESIDENT ARISTIDE DEMANDED THAT HAITI'S ARMY LEADERS AND THE PORTAUPRINCE POLICE CHIEF QUIT FOLLOWING SATURDAY'S ASSASSINATION OF A TOP ARISTIDE SUPPORTER AIDES TO ARISTIDE STRESSED THAT HE WOULDN'T BE INTIMIDATED BY WHAT THEY DESCRIBED AS A CAMPAIGN AIMED AT BLOCKING HIS PLANNED RETURN TO HAITI ON OCT 30 AFTER TWO YEARS OF FORCED EXILE THE US BRITAIN AND FRANCE DRAFTED A UN RESOLUTION TIGHTENING SANCTIONS AGAINST LIBYA UNTIL IT TURNS OVER FOR TRIAL TWO MEN ACCUSED OF BLOWING UP A PAN AM AIRLINER OVER LOCKERBIE SCOTLAND IN 1988 THE DRAFT IS EXPECTED TO BE FORMALLY INTRODUCED IN THE SECURITY COUNCIL AT THE BEGINNING OF NEXT MONTH IF TRIPOLI OFFICIALS FAIL TO ACT GERMANY'S KOHL PROMISED A CRACKDOWN ON NEONAZIS IN A SPEECH MARKING THE UNOFFICIAL START OF HIS REELECTION BID THE CHANCELLOR FACING A CHALLENGE FROM SOCIAL DEMOCRAT CANDIDATE SCHARPING IN THE OCTOBER 1994 VOTE ALSO TOLD FELLOW CHRISTIAN DEMOCRATS THAT WORKERS CAN NO LONGER EXPECT LONG VACATIONS HIGH WAGES AND SHORT WORKWEEKS ANGOLA'S UNITA REBELS WILL IMPLEMENT A UNILATERAL CEASEFIRE ON MONDAY TO HELP REVIVE PEACE TALKS AIMED AT ENDING AN 18YEAROLD CIVIL WAR A UNITA OFFICIAL SAID IN PORTUGAL EARLIER ANGOLAN STATE RADIO SAID UNITA MEMBERS HAD ATTACKED THE CITY OF CUITO WITH TANKS AND WERE CLOSE TO OVERTAKING THE GOVERNMENT GARRISON THERE KAZAKHSTAN AUTHORITIES REPORTED A SHARP RISE IN THE NUMBER OF CHOLERA CASES AND VIRTUALLY SEALED OFF THE FORMER SOVIET REPUBLIC TO OUTSIDERS TO PREVENT AN EPIDEMIC AIR TRAIN AND BUS ROUTES WITH OTHER CENTRAL ASIAN NATIONS WERE CLOSED TO NONKAZAKHS UNLESS THEY HAD CERTIFICATES PROVING THEY WERE FREE FROM INFECTIOUS DISEASES DIED RAYMOND BURR 76 ACTOR WHO PLAYED A CRIMESOLVING LAWYER IN THE PERRY MASON TV SERIES SUNDAY IN DRY CREEK CALIF OF LIVER CANCER 9309140053 930914 AMSOUTH BANCORP TO ACQUIRE FORTUNE VALUE IS 285 MILLION BIRMINGHAM ALA AMSOUTH BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FORTUNE BANCORP INC CLEARWATER FLA FOR ABOUT 285 MILLION IN CASH AND STOCK UNDER THE AGREEMENT FORTUNE SHAREHOLDERS CAN ELECT TO RECEIVE EITHER CASH OR AMSOUTH COMMON STOCK BASED ON A FORMULA THAT INCORPORATES THE PRICE OF AMSOUTH SHARES DURING A SPECIFIC PERIOD IN THE FUTURE BASED ON A RECENT AVERAGE AMSOUTH STOCK PRICE OF 3180 A SHARE THE TRANSACTION IS VALUED AT ABOUT 3425 A SHARE OF FORTUNE STOCK AMSOUTH SAID IT INTENDS TO ISSUE ABOUT 45 MILLION COMMON SHARES AND PAY 1425 MILLION IN CASH SHARES OF FORTUNE JUMPED 10 YESTERDAY ON THE NEWS CLOSING AT 29875 IN OVERTHECOUNTER TRADING UP 275 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMSOUTH SHARES ENDED THE DAY AT 30625 DOWN 1 THE PURCHASE OF FORTUNE PARENT COMPANY OF FORTUNE BANK WHICH HAS 26 BILLION IN ASSETS REPRESENTS THE LARGEST IN A RECENT STRING OF FLORIDA ACQUISITIONS FOR AMSOUTH WITH OPERATIONS IN ALABAMA FLORIDA GEORGIA AND TENNESSEE AMSOUTH EXPECTS ITS TOTAL ASSETS TO EXCEED 16 BILLION ASSUMING ALL PENDING ACQUISITIONS ARE APPROVED IN 1993 THE BANK BASED IN BIRMINGHAM ALA HAS MADE SEPARATE FLORIDA ACQUISITIONS IN CLEARWATER ST PETERSBURG ORLANDO OCALA AND NAPLES WITH FORTUNE BANK IN THE FOLD AMSOUTH'S CURRENT AND PENDING FLORIDA OPERATIONS WILL TOTAL 62 BILLION IN ASSETS RANKING AMSOUTH FIFTH AMONG FLORIDA BANKS THE COMPANY SAID 9309140052 930914 BUSINESS BRIEF FIRST COMMONWEALTH FINANCIAL CORP COMPANY AGREES TO ACQUIRE ANOTHER PENNSYLVANIA BANK FIRST COMMONWEALTH FINANCIAL CORP INDIANA PA SAID IT AGREED TO BUY PEOPLES BANK OF WESTERN PENNSYLVANIA IN A STOCK SWAP CURRENTLY VALUED AT 23 MILLION UNDER THE AGREEMENT FIRST COMMONWEALTH WILLL ISSUE TWO OF ITS COMMON SHARES FOR EACH OF PEOPLES BANK'S 375000 COMMON SHARES OUTSTANDING THE DEAL IS SUBJECT TO APPROVAL BY REGULATORS AND PEOPLES BANK'S SHAREHOLDERS PEOPLES BANK WITH 156 MILLION IN ASSETS HAS SEVEN BANKING OFFICES IN WESTERN PENNSYLVANIA AFTER THE MERGER THE BANK WILL CONTINUE TO OPERATE UNDER ITS CURRENT MANAGEMENT AND ITS OWN NAME FIRST COMMONWEALTH A BANK HOLDING COMPANY HAS SIX BANKS WITH 62 BANKING OFFICES IN WESTERN AND CENTRAL PENNSYLVANIA IT HAD 17 BILLION IN ASSETS AS OF JUNE 30 9309140051 930914 BUSINESS BRIEF BIG O TIRES INC GROUP WITH STAKE OF 99 SEEKS TWO SEATS ON BOARD AN INVESTMENT GROUP HOLDING A 99 STAKE IN BIG O TIRES INC SAID IT ASKED FOR TWO SEATS ON THE COMPANY'S BOARD BECAUSE IT BELIEVES MORE EFFECTIVE GUIDANCE IS NEEDED BALBOA INVESTMENT GROUP LP OF NEWPORT BEACH CALIF SAID IT ASKED BIG O TO ADD TWO DIRECTORS TO ITS EIGHTMEMBER BOARD GENERAL PARTNER KENNETH W PAVIA SAID MANAGEMENT HAD BEEN RESPONSIVE TO BALBOA'S IDEAS BUT BOARD REPRESENTATION WOULD ENSURE MORE ACTIVE INVOLVEMENT IN THE COMPANY THE STAKE WE OWN IS SUBSTANTIALLY MORE THAN ALL OF THE BOARD OWNS IN TOTAL MR PAVIA SAID I THINK IT'S APPROPRIATE THAT SHAREHOLDERS HAVE A MORE ACTIVE VOICE IN RUNNING THE COMPANY A SPOKESWOMAN FOR BIG O IN ENGLEWOOD COLO SAID THE COMPANY HADN'T RESPONDED TO THE REQUEST AND DECLINED COMMENT 9309140050 930914 BUSINESS BRIEF DEAN FOODS CO DAIRY CONCERN SAYS PROFIT FELL IN FISCAL 1ST QUARTER DEAN FOODS CO OF FRANKLIN PARK ILL SAID PERSHARE EARNINGS FOR ITS FIRST QUARTER ENDED AUG 29 WILL FALL 20 TO 25 FROM 39 CENTS A YEAR EARLIER IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY DEAN'S SHARES FELL 1375 TO 27375 OR 48 THE FOOD AND DAIRY CONCERN SAID WEATHER PROBLEMS IN KEY CROP GROWING AREAS AND A HIGHER CORPORATE INCOME TAX RATE AS A RESULT OF THE RECENT BUDGET LEGISLATION WILL CAUSE THE LOWER RESULTS DEAN SAID DISRUPTION OF PLANTING AND ABNORMAL GROWING CONDITIONS FOR VEGETABLE CROPS LED TO HIGHER COSTS THAT COULDN'T BE REFLECTED IN SELLING PRICES DEAN ALSO SAID LOW SELLING PRICES AND HIGH PROMOTIONAL COSTS EXPERIENCED IN THE LAST HALF OF FISCAL 1993 CONTINUED TO AFFECT VEGETABLE EARNINGS IN THE QUARTER 9309140049 930914 INTERNATIONAL BRIEF INCHCAPE PLC FIRSTHALF PRETAX EARNINGS ROSE 11 ACQUISITIONS CITED BRITISH MARKETING AND BUSINESSSERVICES GROUP INCHCAPE PLC REPORTED THAT PRETAX PROFIT ROSE 11 IN THE FIRST HALF FROM THE YEAR BEFORE AS REVENUE JUMPED 29 WITH THE HELP OF CURRENCY MOVEMENTS AND NEW ACQUISITIONS EXCLUDING EXCEPTIONAL ITEMS PRETAX PROFIT ROSE 12 INCHCAPE'S INTERIM PRETAX PROFIT OF 1304 MILLION 2026 MILLION IS AT THE LOWER END OF PRIOR MARKET EXPECTATIONS SALES FOR THE FIRST HALF ROSE 29 TO 301 BILLION THIS FIGURE DOESN'T INCLUDE SALES FROM ASSOCIATED COMPANIES INCHCAPE SAID THE COMPANY'S OPERATING PROFIT ROSE 16 TO 1112 MILLION INCHCAPE OPERATES IN 80 COUNTRIES AROUND THE WORLD WITH THE UNITED KINGDOM ACCOUNTING FOR 23 OF 1992'S PROFIT AND ASIA 42 ITS LEADING ACTIVITIES ARE IN AUTO DISTRIBUTION MARKETING AND SERVICES INCHCAPE SAID ITS MOTORS AND SERVICES DIVISIONS TURNED IN EXCELLENT PERFORMANCES THOUGH MARKETING HELD BACK IN SOME AREAS 9309140048 930914 LAW EDWARD DOWNE GETS PROBATION IN TRADING CASE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EDWARD R DOWNE JR THE BUSINESSMAN AT THE HEART OF A HIGHSOCIETY INSIDERTRADING RING WAS SENTENCED TO THREE YEARS' PROBATION AND 3000 HOURS OF COMMUNITY SERVICE AT THE SAME TIME MR DOWNE'S ATTORNEY ANNOUNCED THAT HIS CLIENT WILL SELL PRACTICALLY EVERYTHING HE OWNS AS PART OF A TENTATIVE SETTLEMENT OF A RELATED CIVIL SUIT FILED BY THE SECURITIES AND EXCHANGE COMMISSION MR DOWNE'S CODEFENDANTS IN THE CIVIL SUIT INCLUDE PUBLICRELATIONS EXECUTIVE STEVEN A GREENBERG AND COSMETICS MAGNATE MARTIN REVSON THE SEC ALLEGED IN THE CIVIL SUIT THAT FROM 1987 TO 1989 THE MEN ILLEGALLY SWAPPED INFORMATION BASED ON TIPS GLEANED IN THEIR ROLES AS CORPORATE DIRECTORS OR INSIDERS MR DOWNE 64 YEARS OLD IS A FORMER BOARD MEMBER OF BEAR STEARNS COS THE FOUNDER OF DOWNE COMMUNICATIONS INC AND THE HUSBAND OF AUTOMOBILE HEIRESS CHARLOTTE FORD HIS CODEFENDANTS INCLUDED NEIGHBORS POKER BUDDIES AND BUSINESS ASSOCIATES THE SEC ALLEGED THAT MR DOWNE MADE ILLEGAL PROFITS OF MORE THAN 8 MILLION IN THE SCHEME IN A COURTROOM PACKED WITH SUPPORTERS MR DOWNE EXPRESSED REPENTANCE FOR THE TRADES FOR WHICH HE PLEADED GUILTY TO TWO FELONY CHARGES LAST YEAR FEDERAL SENTENCING GUIDELINES WHICH REQUIRE ACTUAL PRISON TIME DIDN'T APPLY IN MR DOWNE'S CASE BECAUSE THE CRIMES HE ADMITTED OCCURRED BEFORE THE GUIDELINES TOOK EFFECT I AM SO VERY SORRY FOR THE PAIN I HAVE CAUSED MY FAMILY MR DOWNE SAID ALMOST INAUDIBLY AT THE SENTENCING US JUDGE SHIRLEY WOHL KRAM EXPRESSED SYMPATHY FOR MR DOWNE AND NOTED BEFORE SENTENCING HIM THAT HE HAS COOPERATED SUBSTANTIALLY WITH THE GOVERNMENT SPECIFICS ABOUT THE EXTENT OF HIS COOPERATION WEREN'T DISCLOSED YOU HAVE LIVED A LIFE OF HONESTY AND INTEGRITY UNTIL THIS UNFORTUNATE INCIDENT OCCURRED SHE TOLD HIM JUDGE KRAM ALSO TOOK INTO CONSIDERATION MR DOWNE'S TENTATIVE SEC SETTLEMENT UNDER THE AGREEMENT WHICH STILL NEEDS APPROVAL BY SEC COMMISSIONERS MR DOWNE WOULD SELL MOST OF HIS ASSETS INCLUDING A PRIZED CONTEMPORARYART AND PHOTOGRAPHY COLLECTION HOMES IN IRELAND AND SOUTHAMPTON A FLORIDA CONDOMINIUM SECURITIES AND HIS INTEREST IN VARIOUS PARTNERSHIPS AND BUSINESS VENTURES SOME OF THE MONEY FROM THE SALE OF THE ASSETS WILL GO TO THE INTERNAL REVENUE SERVICE THOMAS PUCCIO A NEW YORK ATTORNEY FOR MR DOWNE SAID HE DIDN'T KNOW THE VALUE OF THE ASSETS AND ADDED THAT MR DOWNE HAS A NEGATIVE NET WORTH THE SENTENCE HANDED DOWN BY JUDGE KRAM CONTRASTED WITH THE 10MONTH PRISON TERM IMPOSED IN FEBRUARY ON MILTON WEINGER A FORMER OPPENHEIMER & CO BROKER WHO WAS MR DOWNE'S ONLY CODEFENDANT IN THE CRIMINAL CASE MR DOWNE WAS ONE OF MR WEINGER'S BIGGEST CUSTOMERS AT OPPENHEIMER MR WEINGER ADMITTED TO CONCEALING THAT MR DOWNE ACTUALLY CONTROLLED A BROKERAGE ACCOUNT OPENED IN MR DOWNE'S SON'S NAME AND ALLEGEDLY USED IN THE INSIDER TRADING MR DOWNE HAD FACED A POSSIBLE SENTENCE OF 10 YEARS ON THE TWO SECURITIESRELATED FELONIES TO WHICH HE ADMITTED AFTER THE SENTENCING JUBILANT SUPPORTERS INCLUDING US SEN CHRISTOPHER DODD EMBRACED MR DOWNE MR PUCCIO SAID SEVERAL SUPPORTERS TURNED DOWN WHITE HOUSE INVITATIONS TO YESTERDAY'S MIDDLE EAST PEACEACCORD SIGNING SO THAT THEY COULD ATTEND THE COURT PROCEEDING 9309140047 930914 BUSINESS BRIEF VISHAY INTERTECHNOLOGY INC MALVERN PA FIRM RECEIVES SETTLEMENT OF 55 MILLION VISHAY INTERTECHNOLOGY INC MALVERN PA SAID IT RECEIVED 55 MILLION IN A BUSINESS INTERRUPTION SETTLEMENT STEMMING FROM A 1992 ROOF COLLAPSE AT ITS PLANT IN DIMONA ISRAEL THE MAKER OF ELECTRONIC PARTS SAID IT RECOGNIZED 2 MILLION OF THE AWARD IN THE FIRST QUARTER THE REMAINING 35 MILLION WILL BE RECORDED IN THE CURRENT QUARTER IN THE YEARAGO THIRD QUARTER VISHAY SAID IT HAD NET INCOME OF 74 MILLION OR 45 CENTS A SHARE ON SALES OF 1649 MILLION FOR THE FIRST NINE MONTHS O 1992 NET WAS 23 MILLION OR 140 A SHARE ON SALES OF 5066 MILLION VISHAY ALSO SAID IT WAS REVIEWING ITS OPERATIONS IN EUROPE AND IT MAY RESTRUCTURE SOME OF ITS OPERATIONS THERE IN ORDER TO ACCELERATE ITS MANUFACTURING BUILDUP IN ISRAEL THE COMPANY WHICH SAID DEMAND FOR ITS COMPONENTS REMAINS STRONG SAID IT PLANS TO BUILD A THIRD PRODUCTION FACILITY IN ISRAEL 9309140046 930914 TECHNOLOGY & HEALTH SPRINT KINKO'S TO BUILD NETWORK FOR VIDEO CALLS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPRINT CORP AND KINKO'S SERVICE CORP PLAN TO BUILD A HUGE PUBLIC VIDEOCONFERENCING NETWORK ALLOWING CUSTOMERS TO MAKE A VIDEO CALL FROM ONE OF KINKO'S 650 COPY CENTERS WORLDWIDE KINKO'S FOUNDER PAUL ORFALEA SAID THE COMPANY WHICH GOT ITS START IN 1970 PROVIDING COPY SERVICES TO COLLEGE STUDENTS IS REPOSITIONING ITS COPY CENTERS TO BE BRANCH OFFICES FOR PEOPLE AWAY FROM THE OFFICE OR WORKING AT HOME THE COMPANY'S CHOICE OF SPRINT IS SOMETHING OF A COUP FOR THE LONGDISTANCE CARRIER WHICH HAS BEEN SLUGGING IT OUT WITH AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP TO LAND VIDEOCONFERENCING TRANSMISSION CUSTOMERS AND WILL NOW HAVE BRAGGING RIGHTS TO THE WORLD'S LARGEST NETWORK THE TWO COMPANIES ARE EXPECTED TO ANNOUNCE THE PROJECT TODAY KINKO'S INTENDS TO PROVIDE THIS SERVICE TO BUSINESS CUSTOMERS AND CONSUMERS WITHIN TWO YEARS MR ORFALEA SAID IN AN INTERVIEW SOME 100 CENTERS WILL BE EQUIPPED BY APRIL 1994 MAKING KINKO'S CHAIN OF NEIGHBORHOOD COPY CENTERS THE LARGEST PROVIDER OF PUBLIC VIDEOCONFERENCING IN THE WORLD HE DECLARED MR ORFALEA IS NOTHING IF NOT ENTHUSIASTIC THIS BUSINESS WILL BE A ROCKET SHIP SIMILAR TO HOW FAX BUSINESS TOOK OFF ACTUALLY THE FIRST PUBLIC VIDEOCONFERENCING ROOMS INTRODUCED BY AT&T IN THE LATE 1970S WERE A COMPLETE DISASTER NOTED ELLIOT GOLD PRESIDENT OF TELESPAN PUBLISHING CORP ALTADENA CALIF WHICH FOLLOWS THE VIDEOCONFERENCING MARKET NOBODY USED THEM MR GOLD NOTED HOWEVER THAT IN THE LAST FEW YEARS THERE HAS BEEN AN EXPLOSION IN THE NUMBER OF VIDEOCONFERENCING ROOMS WHICH MAKE IT POSSIBLE FOR PEOPLE TO MAKE VIDEO CALLS TO OTHERS WHO ARE SIMILARLY EQUIPPED AND HE NOTED EQUIPMENT AND SERVICE PRICING HAS PLUNGED SINCE THE EARLIER ROOMS WENT INTO SERVICE MAKING SERVICE AFFORDABLE THE KINKO'S PROJECT WILL USE VIDEO GEAR MADE BY PICTURETEL CORP DANVERS MASS GIVING CUSTOMERS SEVERAL TYPES OF VIDEO SERVICE THE CUSTOMER WILL BE ABLE TO USE VIDEOCONFERENCING GEAR CONNECTED TO A PERSONAL COMPUTER TO HOLD AN INDIVIDUAL VIDEO CALL WITH SOMEONE AT ANOTHER LOCATION THAT PERSON COULD BE AT ANOTHER KINKO'S OR AT ANY COMPANY ON THE SPRINT VIDEO CONFERENCING NETWORK FOR GROUP VIDEO CALLS KINKO'S PLANS TO INSTALL A BOOTH IN EACH OF ITS CENTERS THE VIDEO BOOTH WILL ACCOMMODATE AS MANY AS FIVE PEOPLE MR ORFALEA SAID TINA MAYLAND SALES AND MARKETING DIRECTOR FOR SPRINT'S VIDEO GROUP NOTED THAT CORPORATE VIDEOCONFERENCING USED TO COST 500000 TO EQUIP A ROOM WITH VIDEO AND AUDIO GEAR PLUS 2000 AN HOUR IN TRANSMISSION CHARGES TODAY A BIG ROOM CAN COST 25000 TO 75000 FOR EQUIPMENT AND 100 TO 250 AN HOUR FOR TRANSMISSION KINKO'S PLANS TO SPEND A LOT LESS MR ORFALEA SAID DECLINING TO BE MORE SPECIFIC TELESPAN'S MR GOLD POINTED OUT THAT PICTURETEL MAKES A VIDEOCONFERENCING UNIT THAT RUNS THROUGH A PERSONAL COMPUTER AND LETS CALLERS SEE EACH OTHER ON THE COMPUTER SCREEN IT SELLS FOR ABOUT 8000 A UNIT LARGER PICTURETEL SYSTEMS FOR A BOOTH WOULD COST ABOUT 14000 TO 20000 EACH THIS MEANS KINKO'S INVESTMENT COULD RUN AS MUCH AS 18 MILLION FOR ONE BOOTH AND PCBASED SYSTEM PER STORE NOT INCLUDING TRANSMISSION CHARGES MR GOLD SAID HE DIDN'T SEE MUCH OF A MARKET FOR CONSUMERS USING THE VIDEO SERVICE SINCE THE COMMUNICATING PARTIES WOULD EACH HAVE TO TRAVEL TO A STORE TO MAKE THE CALLS BUT HE SAID THERE MAY BE A BIG MARKET FOR BUSINESS USERS WHO WANT TO SAY SHOW SOMEONE AT HEADQUARTERS A SLIDE PRESENTATION PREPARED BY THE LOCAL KINKO'S STORE BEFORE SENDING IT OUT VIA OVERNIGHT MAIL KINKO'S BASED IN VENTURA CALIF OFFERS SUCH SERVICES ALLOWING CUSTOMERS TO SEND MATERIAL DIRECTLY FROM THE STORE VIA FEDERAL EXPRESS MR ORFALEA SAID KINKO'S AND SPRINT WHICH IS BASED IN WESTWOOD KAN WILL TRY THIS CHRISTMAS TO SPUR DEMAND AMONG CONSUMERS HE SAID HE WILL KEEP HIS STORES OPEN AND OFFER CONSUMERS VIDEO CALLS FOR 20 PER HALF HOUR 9309140045 930914 BUSINESS BRIEF RECOGNITION INTERNATIONAL INC AEG ELECTROCOM AGREES TO SETTLEMENT OF CIVIL SUIT RECOGNITION INTERNATIONAL INC SAID IT SETTLED A CIVIL SUIT FILED BY COMPETITOR AEG ELECTROCOM OF GERMANY FOR AN UNDISCLOSED CASH AMOUNT MARKING THE END OF LITIGATION RESULTING FROM 1989 CRIMINAL CHARGES AGAINST THE DALLAS COMPANY RECOGNITION THEN KNOWN AS RECOGNITION EQUIPMENT INC ITS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM G MOORE AND FORMER VICE PRESIDENT FOR MARKETING ROBERT W REEDY WERE ACQUITTED ON SEVEN COUNTS OF THEFT WIRE FRAUD AND CONSPIRACY PROSECUTORS ALLEGED RECOGNITION PARTICIPATED IN A SCHEME TO STEER ABOUT 400 MILLION IN US POSTAL SERVICE CONTRACTS TO THE COMPANY AEG ELECTROCOM FILED A CIVIL SUIT IN 1989 CHARGING IT LOST MAILSORTING EQUIPMENT ORDERS BECAUSE OF RECOGNITION'S ALLEGED SCHEME RECOGNITION A MAKER OF DOCUMENTRECOGNITION SYSTEMS SAID IN RETURN FOR ITS PAYMENT TO AEG THE COMPANY WILL RELEASE ALL CLAIMS AGAINST RECOGNITION AND FORMER OFFICERS 9309140044 930914 BUSINESS BRIEF HORIZON HEALTHCARE CORP ANNUAL MEETING SCHEDULED NOV 30 FOR ACQUISITION VOTE HORIZON HEALTHCARE CORP SCHEDULED ITS ANNUAL MEETING OF SHAREHOLDERS FOR NOV 30 TO VOTE IF NECESSARY ON THE PREVIOUSLY ANNOUNCED ACQUISITION OF GREENERY REHABILITATION GROUP INC LAST MONTH HORIZON IN ALBUQUERQUE NM AGREED TO ACQUIRE GREENERY IN NEWTON MASS FOR 85 MILLION IN STOCK AND ASSUMED DEBT THE COMPANY HAS YET TO SETTLE ON TERMS OF THE FINANCING ONE PLAN A PREVIOUSLY ANNOUNCED OFFERING OF FIVE MILLION COMMON SHARES WOULD NOT REQUIRE SHAREHOLDER APPROVAL A SPOKESMAN SAID BUT OTHER OPTIONS WOULD REQUIRE A SHAREHOLDER VOTE HE SAID SINCE THE MERGER ANNOUNCEMENT SHARES IN HORIZON HAVE FALLEN ABOUT 2 TO 12 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HORIZON STOCK CLOSED AT 1275 A SHARE UP 625 CENTS OR 52 SPOKESMAN MICHAEL SEELIGER SAID THE COMPANY IS WAITING TO SEE IF WE GET STRONGER MARKET CONDITIONS AND MIGHT NOT GO THROUGH WITH THE FIVEMILLIONSHARE OFFERING IF THE STOCK PRICE DOESN'T REBOUND 9309140043 930914 MARKETSCAN LITTLE IS BREWING IN ICEDCOFFEE MARKET BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL IT IS TIME FOR BEVERAGE MAKERS TO WAKE UP AND SMELL THE COFFEE READYTODRINK ICED COFFEE ONCE HERALDED AS THE NEW SOFT DRINK THAT WOULD JOLT THE DROWSY BEVERAGE BUSINESS IS TURNING OUT TO BE A TOUGH SELL SOME OF THE NATION'S BIGGEST MARKETERS HAVE SEIZED ON THE IDEA THAT AGING CONSUMERS DISENCHANTED WITH SWEET FIZZY COLAS WILL SWITCH TO SWEET CREAMY COFFEE FROM A BOTTLE OR CAN SOME ANALYSTS PEGGED ICED COFFEE AS A 500 MILLION OPPORTUNITY IT DREW THE ATTENTION OF SUCH HEAVYWEIGHTS AS KRAFT GENERAL FOODS COCACOLA CO AND NESTLE SA RIVALS BRACED THEMSELVES FOR A RUSH OF ACTIVITY INSTEAD PREPARED ICED COFFEE IS OFF TO A SLOW START IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS IN THE 12 MONTHS ENDED AUG 1 THE PRODUCT'S FIRST YEAR OF NATIONAL DISTRIBUTION SALES TALLIED JUST UNDER 38 MILLION ACCORDING TO EXCLUSIVE INFORMATION COMPILED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE THAT FIGURE BARELY REGISTERS AS A NICHE IN THE 47 BILLION BEVERAGE BUSINESS SEVERAL OBSTACLES STAND IN THE WAY OF PLANS TO MAKE ICED COFFEE THE NEXT ALLPURPOSE SOFT DRINK DESPITE THE RISE OF COFFEE BARS SERVING EXOTIC FROZEN LATTES AND ICED ESPRESSOS MOST COFFEE DRINKERS ARE DEEPLY ATTACHED TO HOT COFFEE IN THE US A LITTLE MORE THAN HALF OF ALL PEOPLE OVER AGE 10 DRINK COFFEE BUT ONLY 12 TAKE IT WITH ICE AND THE VAST MAJORITY OF THEM LIKE IT FRESHBREWED RATHER THAN OUT OF A CAN ACCORDING TO THE NATIONAL COFFEE ASSOCIATION A GROUP OF ROASTERS AND IMPORTERS COFFEE DRINKERS ALSO ARE PICKY AND MAKERS OF READYTODRINK VERSIONS DON'T KNOW HOW TO PLEASE THEM YET SOME PRODUCTS ARE CLOSE TO A COFFEEFLAVORED MILKSHAKE SOME ARE LIKE BITTER SYRUP AND SUPERMARKETS CAN'T DECIDE WHERE TO DISPLAY THE NEW PRODUCTS WITH GROUND COFFEE OR IN THE DAIRY SECTION OR IN THE NEW AGE SECTION WITH BOTTLED WATERS AND FRUITY SODAS ALSO THE SMELL OF FRESHBREWED COFFEE IS BETTER THAN THE TASTE SAYS TONY WILLARD A VICE PRESIDENT OF INTERNATIONAL FLAVORS & FRAGRANCES INC THAT IS A HANDICAP FOR ICED COFFEE WHERE SMELL ISN'T A FACTOR SO MOST COMPANIES MAKE THEIR BLENDS MORE PALATABLE BY ADDING CREAM SUGAR AND FLAVORS LIKE CINNAMON CHOCOLATE OR HAZELNUT PHILIP MORRIS COS'S KRAFT UNIT MAKER OF MAXWELL HOUSE COFFEE BEGAN TESTING CAPPIO ICED CAPPUCCINO TWO YEARS AGO AND THE BRAND NOW DOMINATES THE CATEGORY WITH ABOUT 90 OF THE BUSINESS IN ITS FIRST YEAR OF NATIONAL DISTRIBUTION CAPPIO RANG UP 12MONTH SALES OF 331 MILLION IN THE 13 WEEKS ENDING AUG 1 SALES WERE 12 MILLION THE LATTER REPRESENTS A TRIPLEDIGIT INCREASE OVER THE PREVIOUS YEAR WHEN CAPPIO HAD LIMITED DISTRIBUTION THE GROWTH HOWEVER HASN'T BEEN CHEAP KRAFT IS PLOWING THE EQUIVALENT OF ABOUT 40 OF RETAIL SALES BACK INTO A NATIONAL ADVERTISING CAMPAIGN FOR CAPPIO BILLINGS ARE ESTIMATED AT 13 MILLION AND THE BRAND WAS A SPONSOR OF THE US OPEN TENNIS TOURNAMENT MORE TROUBLING CAPPIO APPEARS TO BE GETTING A LUKEWARM RECEPTION FROM CONSUMERS IN PHOENIX AND TUCSON ARIZ WHERE CAPPIO HAS BEEN SELLING SINCE 1991 SALES FOR THE YEAR WERE BASICALLY FLAT UP A MINUSCULE 06 TO 748043 CHARLES A PHILLIPS PRESIDENT OF KRAFT'S MAXWELL HOUSE DIVISION SAYS THE COMPANY IS FAR FROM DISAPPOINTED AMERICAN CONSUMERS HE SAYS CAN'T BE EXPECTED TO START GULPING READYTODRINK COFFEE THE WAY THEIR COUNTERPARTS DO IN JAPAN WHERE ICED COFFEE IS A 6 BILLIONAYEAR BUSINESS IN TEA CULTURES WHERE THERE IS NO COMPARISON TO REGULAR COFFEE COMPANIES HAVE A MUCH EASIER TIME HE SAYS SO FAR THE ICEDCOFFEE SEGMENT HASN'T RECEIVED THE EXPECTED BOOST FROM COKE AND NESTLE IN JAPAN COKE MAKES GEORGIA COFFEE THE NO 1 BRAND OF PREPARED ICED COFFEE AND IN THE US NESTLE'S NESCAFE IS A STRONG FRANCHISE EACH COMPANY PUT UP 100 MILLION TO FORM COCACOLA NESTLE REFRESHMENTS EXPRESSLY TO MARKET ICED COFFEE AND ICED TEA IN THE US AND MOST INTERNATIONAL MARKETS WHILE THE VENTURE NOW MAKES READYMADE NESTEA TEA IT HASN'T INTRODUCED AN ICED COFFEE ON ITS OWN NESTLE RECENTLY PULLED THE PLUG ON ONE TEST BRAND ICEBREAKERS IT SELLS NESCAFE MOCHA COOLER A NEW PRODUCT DISTRIBUTED IN 30 OF THE US THAT HAS LESS THAN A 1 SHARE ACCORDING TO IRI DATA MOST OF THE ENTRIES IN THE ICEDCOFFEE CATEGORY ARE HARDLY PITCHING COFFEE AT ALL INSTEAD SELLING THE DRINKS AS DESSERTLIKE TREATS OUTSIDE METROPOLITAN NEW YORK OR THE BACKWATERS OF BOSTON COLD COFFEE IS A RELATIVELY LOCAL PHENOMENON SAYS MR PHILLIPS OF KRAFT'S MAXWELL HOUSE DIVISION WE'VE NEVER BEEN ABLE TO FIND A MARKET FOR IT SO HE HAS POSITIONED CAPPIO AS AN ICED CAPPUCCINO A CONVENIENT FORM OF THE FROTHY LATTES AND ESPRESSOS SERVED IN SPECIALTY COFFEE BARS RATHER THAN SELLING IT AS THE ICEANDCOLDCOFFEE CONCOCTIONS THAT OFFICE WORKERS DRINK DURING THE SUMMER CAPPIO COMES IN EIGHTOUNCE BOTTLES A FOURPACK USUALLY RETAILS FOR CLOSE TO 3 CALLING IT A CAPPUCCINO HOWEVER IS PROBABLY MORE MARKETING THAN REALITY IT HAS MORE TO DO WITH THE EMOTIONAL APPEAL AND THE IMAGE THAN WITH THE CONCEPT OF CAPPUCCINO ITSELF CONCEDES MICHAEL E GOLDMAN DIRECTOR OF NEW PRODUCT DEVELOPMENT AT CHOCK FULL O' NUTS CORP WHOSE CHOCK O'CCINO ICED CAPPUCCINO COMPETES HEAD ON WITH CAPPIO IT TAKES AWAY SOME OF THE NEGATIVE CONNOTATIONS OF STRAIGHT COLD COFFEE MARKETERS THOUGHT ICED COFFEE WOULD BE THE NEXT BEVERAGE CRAZE BUT THE CATEGORY REMAINS SMALL AND CAPPIO TOWERS OVER SUCH RIVALS AS CHOCK O'CCINO AND NESCAFE MOCHA COOLER 9309140042 930914 BUSINESS BRIEF PROVIDENCE HEALTH CARE INC CONCERN ACQUIRES 40 STAKE IN NUMED FOR CASH AND STOCK PROVIDENCE HEALTH CARE INC IN A MOVE TO EXPAND INTO THE HOME HEALTHCARE MARKET BOUGHT A 40 STAKE IN NUMED HOME HEALTH CARE INC FOR CASH AND STOCK IN A RELATED MATTER PROVIDENCE OF BEREA OHIO AND NUMED OF INDEPENDENCE OHIO SAID THEY MIGHT FORM A JOINT VENTURE TO EXPAND HOME HEALTHCARE OPERATIONS IN OHIO PROVIDENCE WOULD PROVIDE 500000 IN WORKING CAPITAL FOR THE VENTURE UNDER TERMS OF THE TRANSACTION PROVIDENCE PAID 375000 AND ISSUED 925000 SHARES OF ITS OWN COMMON STOCK TO ACQUIRE 3350500 SHARES OF NUMED THAT GIVES NUMED A 20 STAKE IN PROVIDENCE PROVIDENCE ALSO PAID 125000 TO ACQUIRE WARRANT RIGHTS WHICH ENTITLE PROVIDENCE TO INCREASE ITS STAKE IN NUMED TO 501 AT ANY TIME DURING THE NEXT 22 MONTHS PROVIDENCE NAMED NUMED'S CHIEF EXECUTIVE JUGAL K TANEJA 49 YEARS OLD TO THE PROVIDENCE BOARD EXPANDING IT TO FIVE MEMBERS FROM FOUR PROVIDENCE ALSO OBTAINED THE RIGHT TO APPOINT FOUR DIRECTORS TO NUMED'S BOARD WHICH WOULD EXPAND TO 11 MEMBERS 9309140041 930914 POLITICS & POLICY DEMOCRATIC POLLSTER LAKE JOINS POLITICAL FORUM WASHINGTON CELINDA LAKE A DEMOCRATIC POLLSTER AND CONSULTANT HAS JOINED THE WALL STREET JOURNAL'S PANEL OF POLITICAL EXPERTS EXPANDING THE BIPARTISAN GROUP TO FIVE MS LAKE IS A PARTNER IN MELLMAN LAZARUS LAKE INC A DEMOCRATIC POLLING AND CONSULTING FIRM SHE WAS A SENIOR ADVISER TO THE CLINTON PRESIDENTIAL CAMPAIGN AND HAS DONE POLLING FOR NUMEROUS POLITICAL GROUPS AND CANDIDATES PARTICULARLY WOMEN THE OTHER PANELISTS ARE JOHN SEARS ONETIME PRESIDENTIAL CAMPAIGN MANAGER FOR RONALD REAGAN AND NOW A WASHINGTON LAWYER KEVIN PHILLIPS A POLITICAL ANALYST FOR THE 1968 NIXON CAMPAIGN AND NOW AUTHOR OF A POLITICAL NEWSLETTER AND BOOKS ON POLITICAL TRENDS GREG SCHNEIDERS FORMER TOP POLITICAL AIDE TO PRESIDENT JIMMY CARTER AND NOW A DEMOCRATIC POLLSTER AND ALAN BARON FORMER EDITOR OF A POLITICAL NEWSLETTER AND AN ADVISER TO DEMOCRATIC PRESIDENTIAL CANDIDATES GEORGE MCGOVERN AND EDMUND MUSKIE 9309140040 930914 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN BUSINESS APPLAUDS A WHITE HOUSE PLAN ON WORKPLACE SAFETY BUT UNIONS GROAN THE PROPOSAL PART OF THE REINVENTING GOVERNMENT EFFORT WOULD LET FIRMS TAP EMPLOYEES FOR INSPECTIONS OR HIRE OUTSIDE SAFETY AUDITORS BUSINESS GROUPS HOPE THE PLAN WILL JUMPSTART A PROPOSAL BY CONGRESSIONAL REPUBLICANS TO CUT BURDENS ON SAFE COMPANIES SAYS JOHN TYSSE OF THE LABOR POLICY ASSOCIATION IT LETS THE GOOD PROGRAMS OPERATE WITHOUT GOVERNMENT INTERFERENCE AND CONCENTRATES ENFORCEMENT ON THE BAD ACTORS BUT DEMOCRATS AND UNIONS TRYING TO PUSH CONGRESS TO REQUIRE STRICTER SAFETY STANDARDS WORRY THE PROPOSAL WILL DAMAGE EFFORTS TO BEEF UP THE OCCUPATIONAL SAFETY AND HEALTH ACT FOR THE FIRST TIME SINCE 1970 HISTORY SHOWS THESE TYPES OF SAFETY PLANS ARE EASILY CIRCUMVENTED SAYS DEBBIE BERKOWITZ OF THE FOOD WORKERS' UNION WHILE LABOR DEPARTMENT OFFICIALS PRIVATELY DISAVOW THE WHITE HOUSE PLAN THEIR ORIGINAL PROPOSAL SIMILARLY ARGUED FOR MORE CORPORATE SELFPOLICING UNEMPLOYMENT INSURANCE LOOMS AS A POLITICAL BATTLEGROUND CURRENT FEDERAL EMERGENCY BENEFITS ARE SET TO EXPIRE OCT 2 THE WHITE HOUSE WILL SEEK AN EXTENSION BUT PROBABLY LESS THAN THE CURRENT 12 BILLIONAYEAR PAYOUT UNEMPLOYED WORKERS PROBABLY WOULDN'T RECEIVE THE STANDARD 26 WEEKS OF US AID AFTER USING UP STATE BENEFITS LABOR SECRETARY REICH WANTS EVENTUALLY TO LINK FEDERAL MONEY TO JOB COUNSELING AND TRAINING REPUBLICANS WHILE WORRIED ABOUT LOOKING CALLOUS MULL WAYS TO FIGHT THE EXTENSION WHICH THEY VIEW AS A BUDGET BUSTER LIBERAL DEMOCRATS MEANWHILE TRY TO MAKE FEDERAL BENEFITS PERMANENT ENDING THE BIANNUAL FIGHT WHEN THE LONGTERM UNEMPLOYED LOSE JOBLESS BENEFITS THEIR POVERTY RATE SOARS SAYS IRIS LEV OF THE CENTER ON BUDGET AND POLICY PRIORITIES RIDESHARING REVS UP AS FIRMS PONDER NEW MANDATES UNDER THE CLEAN AIR ACT BY THE END OF NEXT YEAR COMPANIES IN THE SMOGGIEST CITIES MUST TELL STATES HOW THEY PLAN TO LIFT THEIR WORKERS' AVERAGE CAR OCCUPANCY BY 25 IN SOUTHERN CALIFORNIA WHERE A REGIONAL ANTIPOLLUTION PLAN ALREADY IS IN EFFECT AMGEN PAYS WORKERS 25 A MONTH TO RIDE BIKES AND ADVANCES THEM BIKEPURCHASE MONEY FLUOR GETS RIDESHARE CREDIT FOR GIVING WORKERS EVERY OTHER FRIDAY OFF IN HOUSTON PENNZOIL PAYS CITY BUS FARES AND SUBSIDIZES PARKING FOR GROUP VEHICLES BUT MANY FIRMS ARE LAGGING FOX THE MOVIE AND TV COMPANY OFFERS CARPOOLING INCENTIVES BUT PRODUCTION SCHEDULES HURT EFFORTS CONCEDES FOX'S ROBERT PAYNE THIS ISN'T A PLACE WHERE THE WHISTLE BLOWS AND EVERYBODY LEAVES AT ONCE LIKE MANY COMPANIES SCOTT PAPER'S PHILADELPHIA HEADQUARTERS HASN'T STARTED DEVELOPING A PLAN US AIDES WONDER IF THE EFFORT WILL WORK IT'S THE ONLY CLEAN AIR ACT PROGRAM DESIGNED TO GET PEOPLE OUT OF THEIR CARS NOTES THE EPA'S DON ZINGER IT'S KIND OF AN EXPERIMENT DUCK BUT DON'T PULL SOMETHING BEING HIT BY AN OBJECT IS THE MOST COMMON WORKPLACE INJURY ACCOUNTING FOR NEARLY 27 OF ALL CLAIMS ITT HARTFORD REPORTS BUT SPRAINS AND STRAINS ARE CLOSE BEHIND AND THEY ARE THE MOST COSTLY IN TERMS OF DAYS LOST FOLLOWED BY SLIPS AND FALLS PROFESSIONAL TRAINERS URGE TAX BREAKS FOR CORPORATIONS TO BOOST WORKER EDUCATION BUT THEY GENERALLY OPPOSE MANDATED TRAINING A SURVEY OF TRAINERS BY LAKEWOOD RESEARCH OF MINNEAPOLIS SHOWS THAT LESS THAN A THIRD WANT A GOVERNMENTDICTATED TRAINING REQUIREMENT ALTHOUGH 42 SAY IT WOULD HELP CREATE A HIGHSKILLED WORK FORCE NEARLY 70 SAY TAX BREAKS WOULD BOOST THEIR COMPANIES' SPENDING ON TRAINING EQUAL BYTES PAY PARITY MAY BE COMING FOR THE COMPUTER INDUSTRY COMPUTERWORLD'S NEWEST SURVEY SHOWS THE SALARY GAP BETWEEN MEN AND WOMEN SLIMMED TO 15 FROM 21 LAST YEAR THE MAGAZINE SAYS AMONG PERSONALCOMPUTER MANAGERS WOMEN ARE ACTUALLY PAID 61 MORE THAN MEN AT THE CHIEF INFORMATION OFFICER LEVEL MEN EARN 62 MORE THE FIGHT RESUMES IN CONGRESS OVER ORPHANS OF THE COAL INDUSTRY LAST YEAR CONGRESS TRIED TO FUND RETIRED MINERS' HEALTH BENEFITS BY ALLOWING ASSESSMENTS ON ALL EMPLOYERS COVERED BY A COAL WAGE CONTRACT DATING FROM 1950 THE GOAL WAS TO PROVIDE FOR SOCALLED ORPHAN MINERS WHOSE COMPANIES HAVE SINCE GONE OUT OF BUSINESS BUT COMPANIES ON THE HOOK ARE TRYING TO SWAY CONGRESS TO REPEAL THE MEASURE BEFORE OCT 25 WHEN THE FUNDING IS REQUIRED SMALL BUSINESSES PARADED BEFORE THE HOUSE WAYS AND MEANS COMMITTEE LAST WEEK TO PLEAD THEIR CASE BARNES & TUCKER CO WHICH NO LONGER MINES BUT LEASES LANDS TO MINE OPERATORS SAYS IT WOULD OWE AS MUCH AS 37 MILLION A YEAR EVEN THOUGH ITS ANNUAL REVENUE IS JUST 14 MILLION UNITED MINE WORKERS' PRESIDENT RICHARD TRUMKA COUNTERS THAT LETTING EMPLOYERS OUT WOULD PLACE INCREASED BURDENS ON THE REMAINING FIRMS CHECKOFF MOSES KNOWS WORK OPPONENTS OF A BILL THAT WOULD BAR PERMANENT REPLACEMENT OF STRIKERS TAP CHARLTON HESTON FOR TV ADS THE HEADLINE OVER A TEAMSTERS' NEWS RELEASE PLUGGING A LAWSUIT AGAINST KMART FOR ALLEGEDLY HIRING INVESTIGATORS TO SPY ON WORKERS ATTENTION KMART SNOOPERS 9309140039 930914 MARKETING & MEDIA DISCOUNTTRAVEL CONCERNS MERGED BY INVESTOR GROUP PRIVILEGE CARD INTERNATIONAL INC A DEVELOPER AND WHOLESALER OF DISCOUNT TRAVEL PROGRAMS AND PLAYERS CLUB INTERNATIONAL WHICH SPECIALIZES IN CUTRATE CASINO TRAVEL ARE JOINING FORCES TO CASH IN ON THE BURGEONING DISCOUNTTRAVEL MARKET PRIVILEGE PLAYERS GROUP INC OF ATLANTA A NEWLY FORMED COMPANY SAID IT ACQUIRED THE ASSETS OF PRIVILEGE CARD OF ATLANTA AND PLAYERS CLUB A SUBSIDIARY OF PLAYERS INTERNATIONAL INC TERMS WEREN'T DISCLOSED BY MERGING THE TWO COMPANIES INVESTORS HOPE TO TAP TRAVELERS' HUNGER FOR CHEAP HOTEL ROOMS RESTAURANTS CASINO FREEBIES AND OTHER PERKS BY SELLING MEMBERSHIPS IN ITS VARIOUS PROGRAMS THE NEW VENTURE IS BEING LED BY MARTIN MARCHMAN AN ATLANTA REALESTATE DEVELOPER AND FORMER OWNER OF PRIVILEGE CARD GEORGE A VANDEMAN A SENIOR PARTNER AT THE LAW FIRM OF LATHAM & WATKINS DAVID WITTIG COHEAD OF MERGERS AND ACQUISITIONS AT SALOMON INC'S SALOMON BROTHERS INC UNIT AND CHARLES H STERN AN ENTERTAINMENT INDUSTRY AGENT 9309140038 930914 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 ASSOCIATES CORP OF NORTH AMERICA 300 MILLION OF NOTES DUE MARCH 30 2000 PRICED AS 525S AT 994 TO YIELD 536 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 216 MILLION OF NOTES DUE SEPT 21 1998 PRICED AT PAR TO YIELD 483 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE SEPT 20 2000 PRICED AT PAR TO YIELD 527 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WERE PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC HELLER FINANCIAL INC 200 MILLION OF NOTES DUE MARCH 15 2000 PRICED AS 5625S AT 99875 TO YIELD 5648 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PACIFIC GAS & ELECTRIC CO 700 MILLION TWOPART ISSUE PRICED BY UNDERWRITERS LED BY CS FIRST BOSTON ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 300 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE OCT 1 2005 WAS PRICED AS 5875S AT 99871 TO YIELD 589 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 63 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 400 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE OCT 1 2023 WAS PRICED AS 675S AT 98732 TO YIELD 685 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P AMERICAN SELECT PORTFOLIOS INITIAL OFFERING OF 135 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PIPER JAFFRAY INC SIERRA PACIFIC RESOURCES 25 MILLION COMMON SHARES PRICED AT 20875 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC BABYLON NY 125 MILLION 1993 WASTEFACILITIES GENERALOBLIGATION BONDS PRICED BY A SMITH BARNEY SHEARSON GROUP YIELDS RANGE FROM 31 IN 1995 TO 52 FOR ZEROCOUPON BONDS DUE IN 2009 AND 2010 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 813 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1606 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS CHRYSLER FINANCIAL CORP 105 BILLION OF ASSETBACKED SECURITIES PRICED IN THREE PARTS BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE 2205 MILLION IN CLASS A1 CERTIFICATES WAS PRICED TO YIELD 3232 THE CERTIFICATES ELIGIBLE TO MONEYMARKET FUNDS HAVE A 046YEAR AVERAGE LIFE AND WERE GIVEN TOP SHORTTERM RATINGS BY DUFF & PHELPS CO FITCH INVESTORS SERVICE S&P AND MOODY'S D&P FITCH AND MOODY'S ALSO RATED THE CERTIFICATES TRIPLEA THE 7875 MILLION IN CLASS A2 CERTIFICATES WAS PRICED AS 422S AT 99875 TO YIELD 4316 A 54BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE A 231YEAR AVERAGE LIFE AND WERE RATED TRIPLEA BY THE FOUR RATING AGENCIES THE 42 MILLION IN SUBORDINATE CERTIFICATES WAS PRICED AS 445S AT 99875 TO YIELD 4549 A 77BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES WITH A 238YEAR AVERAGE LIFE WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY D&P FITCH AND S&P THE ISSUE PREMIER AUTO TRUST 19935 WAS 100 PREFUNDED CHRYSLER FINANCIAL A UNIT OF CHRYSLER CORP IS SELLING THE LOANS CHRYSLER CREDIT CORP IS THE LOAN SERVICER CREDIT ENHANCEMENT CONSISTS OF 4 IN SUBORDINATE CERTIFICATES 45 OVERCOLLATERALIZATION AND A 17 RESERVE FUND COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 150 MILLION ECU OF 6375 EUROBONDS DUE NOV 15 2001 AT ISSUE PRICE 101575 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT PAR TO YIELD 6375 FEES 1575 PETROLEOS MEXICANOS MEXICO 750 MILLION FRENCH FRANCS OF 775 EUROBONDS DUE SEPT 30 1998 AT ISSUE AND REOFFER PRICE 999 VIA BANQUE PARIBAS BONDS YIELD 7775 A SPREAD OF 2125 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 075 TOKYO MUNICIPALITY 240 MILLION OF 55 EUROBONDS DUE OCT 15 2003 AT ISSUE AND REOFFER PRICE 9934 VIA IBJ INTERNATIONAL LTD BONDS YIELD 559 A SPREAD OF 28 BASIS POINTS ABOVE COMPARABLE US TREASURY GUARANTOR JAPANESE GOVERNMENT FEES 0325 VENEZUELA SOVEREIGN 300 MILLION OF EUROBONDS DUE SEPT 20 1995 IN TWO TRANCHES VIA GOLDMAN SACHS INTERNATIONAL LTD FIRST TRANCHE 250 MILLION OF 675 NOTES AT ISSUE AND REOFFER PRICE 10005 TO YIELD 295 BASIS POINTS ABOVE COMPARABLE US TREASURY SECOND TRANCHE 50 MILLION OF NOTES AT ISSUE AND REOFFER PRICE PAR AT 280 BASIS POINTS ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 0533 INTEREST PAYABLE SEMIANNUALLY 9309140037 930914 METPATH UNILAB PAY 398 MILLION TO CLEAR CHARGES TWO MEDICAL LABS ALLEGEDLY RAN UNNECESSARY TESTS GIVING MEDICARE THE BILL BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL TWO OF THE NATION'S LARGEST MEDICAL TEST LABORATORIES CORNING INC'S METPATH DIVISION AND UNILAB CORP TOGETHER PAID 398 MILLION TO SETTLE ALLEGATIONS THAT THEY SUBMITTED MEDICARE CLAIMS FOR UNNECESSARY BLOOD TESTS THE SETTLEMENT IS PART OF THE FEDERAL GOVERNMENT'S CONTINUING PROBE OF BLOOD TESTING LABS' MEDICARE AND MEDICAID BILLING PRACTICES TWO WEEKS AGO CORNING UNILAB AND SEVERAL OTHER LAB COMPANIES RECEIVED DEPARTMENT OF HEALTH AND HUMAN SERVICES SUBPOENAS REQUESTING BILLING DOCUMENTS AND OTHER INFORMATION CORNING AND UNILAB MANIPULATED DOCTORS INTO RECEIVING MEDICALLY UNNECESSARY TEST RESULTS FOR SEVERAL EXTRA TESTS WHENEVER DOCTORS ORDERED CERTAIN BASIC AUTOMATED BLOOD TESTS SAID FRANK W HUNGER AN ASSISTANT ATTORNEY GENERAL IN CHARGE OF THE JUSTICE DEPARTMENT'S CIVIL DIVISION THE SETTLEMENT WAS NEGOTIATED JOINTLY WITH METPATH AND UNILAB A PUBLICLY TRADED SUCCESSOR TO METPATH'S CALIFORNIA OPERATIONS KNOWN AS METWEST THE ALLEGED VIOLATIONS BEGAN IN 1988 WHEN THE CALIFORNIA OPERATIONS WERE PART OF CORNING'S METPATH UNIT CORNING STILL OWNS A 43 STAKE IN UNILAB OF THE TOTAL SETTLEMENT 35 MILLION WAS PAID BY CORNING THE CORNING NY DIVERSIFIED CONSUMER PRODUCTS AND SPECIALTY MATERIALS CONCERN UNILAB BASED IN TARZANA CALIF PAID 48 MILLION TO THE FEDERAL GOVERNMENT PLUS 476000 TO SETTLE SIMILAR CLAIMS BROUGHT BY CALIFORNIA'S MEDICAID PROGRAM A CORNING SPOKESWOMAN SAID SHE DIDN'T KNOW IF THE COMPANY FACES ANY STATE MEDICAID CLAIMS IN SEPARATE STATEMENTS CORNING AND UNILAB SAID THE SETTLEMENT DOES NOT CONSTITUTE AN ADMISSION BY EITHER COMPANY WITH RESPECT TO ANY ISSUE OF LAW THE ALLEGED VIOLATIONS WERE SIMILAR TO PRACTICES THAT RESULTED LAST DECEMBER IN A 1114 MILLION SETTLEMENT WITH NATIONAL HEALTH LABORATORIES INC THE LARGEST MEDICARE SETTLEMENT EVER NHL PLEADED GUILTY TO TWO FELONY COUNTS AND ITS FORMER PRESIDENT SERVED THREE MONTHS IN PRISON SPOKESPEOPLE FOR CORNING AND UNILAB SAID THEY WEREN'T AWARE OF ANY CRIMINAL INVESTIGATION OF THEIR COMPANIES OR EXECUTIVES WHILE SPECIFIC PRACTICES DIFFERED EACH OF THE THREE COMPANIES WAS ACCUSED OF REVISING ITS ORDER FORMS ADDING VARIOUS BLOOD TESTS TO 19 OTHERS THAT ARE ROUTINELY CONDUCTED ON A SEQUENTIAL MULTIPLE ANALYSIS COMPUTER OR SMAC MACHINE DOCTORS ORDERED THE ADDITIONAL TESTS AS PART OF THE SMAC WITHOUT REALIZING THAT MEDICARE WOULD BE CHARGED SEPARATELY FOR THEM THE UNNECESSARY TESTS COST MEDICARE MILLIONS OF DOLLARS THE GOVERNMENT SAID MORE SPECIFIC COST ESTIMATES WEREN'T PROVIDED RICHARD A MICHAELSON UNILAB VICE PRESIDENT OF FINANCE SAID THE SETTLEMENT COVERS ISSUES THE GOVERNMENT HAS RAISED WITH THE COMPANY SINCE THE INVESTIGATION BEGAN IN LATE 1991 BUT THE GOVERNMENT WILL CONTINUE LOOKING AT US ALL LABS AND ALL PROVIDERS AS PART OF ITS LARGER SCRUTINY OF HEALTH CARE HE SAID THE SUBPOENA RECEIVED TWO WEEKS AGO ASKED FOR INFORMATION ABOUT BLOOD TESTS NOT INCLUDED IN THE SETTLEMENT HE NOTED OTHER LAB COMPANIES THAT HAVE ACKNOWLEDGED RECEIVING SUBPOENAS FROM FEDERAL OFFICIALS INCLUDE LONDONBASED SMITHKLINE BEECHAM PLC NICHOLS INSTITUTE SAN JUAN CAPISTRANO CALIF AND ALLIED CLINICAL LABORATORIES INC NASHVILLE TENN THE NHL CORNING AND UNILAB SETTLEMENTS ARE LINKED THROUGH A WHISTLEBLOWER LAWSUIT BROUGHT BY C JACK DOWDEN A FORMER SALES MANAGER FOR METWEST MR DOWDEN CHARGED THE THREE COMPANIES WITH SUBMITTING THOUSANDS OF FALSE MEDICARE AND MEDICAID CLAIMS THE GOVERNMENT SAID MR DOWDEN WILL RECEIVE NEARLY 6 MILLION FOR HIS ROLE IN THE CORNING AND UNILAB CASES ON TOP OF 15 MILLION HE AND HIS ATTORNEYS RECEIVED FROM THE NHL SETTLEMENT AFTER THE NHL SETTLEMENT WAS ANNOUNCED THE IDENTITY OF THE OTHER DEFENDANTS IN MR DOWDEN'S SUIT WAS KEPT SECRET WHILE THE GOVERNMENT INVESTIGATED THEM MR DOWDEN'S ATTORNEY JOHN R PHILLIPS SAID THE SETTLEMENT RESOLVES MR DOWDEN'S LAWSUIT FILED MORE THAN TWO YEARS AGO IN LOS ANGELES FEDERAL COURT UNDER THE FALSE CLAIMS ACT CORNING SHARES ROSE 25 CENTS YESTERDAY TO 3250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UNILAB SHARES SLIPPED 25 CENTS TO 650 IN NATIONAL OVERTHECOUNTER TRADING THE SETTLEMENT WAS ANNOUNCED AFTER THE CLOSE OF MARKETS 9309140036 930914 BLACKS DID BETTER AT SOME COMPANIES NOT ALL COMPANIES LOST A DISPROPORTIONATE SHARE OF THEIR BLACK EMPLOYEES IN THE LAST RECESSION AMERICAN TELEPHONE & TELEGRAPH CO MANAGED TO RETAIN ITS PERCENTAGE OF BLACK WORKERS DESPITE JOB CUTS WE MONITORED WHAT WAS HAPPENING AND WE WORKED AWFUL HARD SAYS ANNE FRITZ AN AT&T HUMANRESOURCES MANAGER WE TRIED TO BE FAIR TO EVERYBODY BUT MOST COMPANIES THAT LOST ONLY A SMALL PERCENTAGE OF BLACK WORKERS OR EVEN GAINED BLACKS DID SO MAINLY BECAUSE OF A GEOGRAPHICAL FLUKE SUCH AS SELLING BUSINESSES OR TRIMMING STAFF IN LARGELY WHITE NEIGHBORHOODS LIKE CORPORATIONS THAT LOST A DISPROPORTIONATE SHARE OF BLACKS THESE COMPANIES SAY THEY HAD NO IDEA THEIR RESTRUCTURING WOULD HAVE SUCH A DISPARATE IMPACT ON ITS EMPLOYEES BLACK EMPLOYEES ALSO BENEFITED FROM EARLYRETIREMENT PROGRAMS AT A FEW COMPANIES BLACKS LOST ONLY FIVE OF 835 JOBS IN EASTMAN KODAK CO'S EARLYRETIREMENT BUYOUT BECAUSE MOST OF THE WORKERS WHO QUALIFIED FOR THE PROGRAM WERE WHITE MALES HIRED IN THE 1950S AND '60S THE DEPARTURES OF THESE EMPLOYEES CREATED SOME VACANCIES THAT WERE FILLED BY A GREATER SHARE OF MINORITIES KODAK SAYS AT&T HAD SIMILAR EARLYRETIREMENT OFFERS IN THE 1980S WHICH ALLOWED IT TO MAINTAIN ITS LEVEL OF STAFF DIVERSITY DESPITE MASSIVE DOWNSIZINGS BUT WHEN THE COMPANY BEGAN LAYOFFS IN THE 1990S IT DECIDED TO LOOK FOR OTHER WAYS TO ENSURE THAT MINORITIES WOULDN'T BE HIT HARDER THAN THE OVERALL STAFF AT&T SAYS IT WANTED TO AVOID ANY UNDOING OF AN INTENSIVE AFFIRMATIVEACTION EFFORT DATING BACK TO 1973 FOLLOWING THE FILING OF SEX AND RACE DISCRIMINATION CHARGES AGAINST IT BY THE EEOC SO DURING THE RECESSION AT&T BEGAN REDUCING ITS PAYROLL BY OFFERING EMPLOYEES TWOYEAR UNPAID LEAVES OF ABSENCE IT ALSO LAID OFF WORKERS BUT OFFERED THEM SEVERAL WAYS TO TRY TO STAY WITH THE COMPANY AT&T LAUNCHED AN INHOUSE EMPLOYMENT SERVICE TO HELP THESE EMPLOYEES FIND OTHER JOBS AT THE COMPANY AND CREATED A TEMPORARY WORK POOL ENABLING THEM TO RECEIVE REDUCED PAY WHILE AWAITING TEMPORARY ASSIGNMENTS INSIDE AT&T THESE EFFORTS SEEM TO HAVE WORKED THE COMPANY'S PAYROLL WAS 164 BLACK IN 1990 AND OF 18525 EMPLOYEES WHO LOST THEIR JOBS IN THE RECESSION ABOUT 16 WERE BLACK FOR MOST COMPANIES HOWEVER BLACK JOB GAINS CAME BY CHANCE THERE ISN'T ANY SPECIFIC CONSIDERATION GIVEN TO MINORITY STATUS SAYS BARRY LACTER A SPOKESMAN FOR LOUISIANAPACIFIC CORP WHERE THE BLACK WORK FORCE GREW BY 77 IN 1991 EVEN AS THE COMPANY CUT ITS OVERALL STAFF BY 61 THE REASON FOR THE GAIN LOCATION LOCATION LOCATION THE COMPANY ELIMINATED JOBS IN ITS RURAL NORTHERN CALIFORNIA PLANTS THAT HAD FEW MINORITIES WHILE ADDING WORKERS IN SOUTHERN STATES WITH LARGE BLACK POPULATIONS SEE RELATED ARTICLE UNEQUAL OPPORTUNITY LOSING GROUND ON THE EMPLOYMENT FRONT LOSING GROUND IN LATEST RECESSION ONLY BLACKS SUFFERED NET EMPLOYMENT LOSS FIRMS ADDED WHITES ASIANS AND HISPANICS OVERALL BUT THEY DENY ANY BIAS EFFECTS OF SENIORITY LOCATION WSJ SEPT 14 1993 9309140035 930914 MARKETING & MEDIA DISNEY UNIT TO PUBLISH JACK THE RIPPER' DIARY DESPITE HOAX CONCERNS NEW YORK HYPERION SAID IT WILL PUBLISH THE DIARY OF JACK THE RIPPER WHICH WAS RECENTLY REJECTED BY WARNER BOOKS AS A HOAX HYPERION NOTED THAT BRITAIN'S SMITH GRYPHON LTD WOULD PUBLISH THE BOOK AS SCHEDULED MAINTAINING THAT IT WAS GENUINE HYPERION'S VERSION WOULD INCLUDE THE FULL TEXT OF THE DOCUMENT ALONG WITH ARGUMENTS REGARDING ITS AUTHENTICITY CERTAINLY IF IT IS A HOAX IT IS A VERY OLD AND ELABORATE ONE SAID ROBERT MILLER VICE PRESIDENT AND PUBLISHER OF HYPERION A UNIT OF DISNEY BOOK PUBLISHING INC AND INDEED IF ULTIMATELY PROVEN TO BE AUTHENTIC IT SOLVES ONE OF THE GREATEST MYSTERIES OF ALL TIME HE ADDED DISNEY BOOK PUBLISHING INC IS A UNIT OF WALT DISNEY CO WARNER BOOKS HAD EARLIER SAID IT WOULDN'T PUBLISH THE BOOK AFTER INVESTIGATORS IT HIRED SAID IT WAS A FORGERY THE TIME WARNER INC UNIT ANTICIPATING A MAJOR BESTSELLER HAD SAID AT THE TIME THAT BOOKSTORES HAD ORDERED MORE THAN 200000 COPIES IN ADVANCE 9309140034 930914 HOW THE DATA WERE ANALYZED TO EXAMINE HOW BLACK WORKERS FARED IN THE RECESSION THE WALL STREET JOURNAL ANALYZED EMPLOYMENT CHANGES AT 35242 COMPANIES THAT FILED REPORTS WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN 1990 AND 1991 MORE THAN 40 MILLION EMPLOYEES OR ABOUT A THIRD OF THE LABOR FORCE WORK FOR THESE CONCERNS THE JOURNAL ALSO ANALYZED CHANGES IN BLACK EMPLOYMENT AT EACH OF ABOUT 400 OF THE NATION'S LARGEST FEDERAL CONTRACTORS IN TERMS OF MARKET CAPITALIZATION THE REPORTS PROVIDE A COMPARISON OF EMPLOYMENT AT THE NATION'S LARGER BUSINESSES BEFORE AND AFTER THE LATEST ECONOMIC DOWNTURN WHICH OFFICIALLY BEGAN IN JULY 1990 AND ENDED IN MARCH 1991 IN 1990 THE COMPANIES HAD TO REPORT PERSONNEL INFORMATION FOR ONE PAYROLL PERIOD BETWEEN JANUARY AND MARCH BUT BECAUSE OF A REGULATION CHANGE THEY DIDN'T HAVE TO FILE THEIR 1991 REPORTS UNTIL THE THIRD QUARTER AFTER THE RECESSION ENDED BUSINESSES WITH 100 OR MORE EMPLOYEES MUST TELL THE EEOC YEARLY THE NUMBER OF WOMEN AND MINORITIES THEY EMPLOY WITH BREAKDOWNS FOR SPECIFIC JOB CATEGORIES COMPANIES WITH 50 OR MORE EMPLOYEES AND A US GOVERNMENT CONTRACT OF AT LEAST 50000 MUST FILE REPORTS TOO THE JOURNAL OBTAINED COMPUTER TAPES OF ALL 1990 AND 1991 EEOC REPORTS BUT WITH THE COMPANY NAMES DELETED TO COMPARE INDIVIDUAL COMPANIES THE JOURNAL USED THE FREEDOM OF INFORMATION ACT TO OBTAIN SUMMARY EMPLOYMENT FILINGS FOR THE LARGEST FEDERAL CONTRACTORS FROM THE LABOR DEPARTMENT'S OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAM TO ANALYZE BLACKS' TREATMENT AT FEDERAL CONTRACTORS WHERE TOTAL EMPLOYMENT FELL BY 500 OR MORE BETWEEN 1990 AND 1991 THE JOURNAL CALCULATED WHAT PERCENTAGE OF EACH COMPANY'S WORK FORCE WAS BLACK IN 1990 AND THEN DETERMINED WHAT PERCENTAGE OF THE EMPLOYMENT DECLINE BETWEEN 1990 AND 1991 REPRESENTED BLACK WORKERS THE BLACK JOBLOSS INDEX WAS COMPUTED BY DIVIDING THE FIRST CALCULATION INTO THE SECOND IF A COMPANY HAD A STAFF THAT WAS 16 BLACK IN 1990 BUT BLACKS ACCOUNTED FOR 24 OF ITS DECLINE IN EMPLOYMENT THE COMPANY'S BLACK JOBLOSS INDEX WOULD BE 150 THUS THE LARGER THE BLACK JOBLOSS INDEX THE MORE DISPROPORTIONATE THE STAFF REDUCTION WAS FOR BLACKS A NUMBER OF LESS THAN ONE INDICATES THE JOBS OF BLACKS WERE ELIMINATED AT A LOWER RATE THAN THEIR 1990 REPRESENTATION AT THE COMPANY THE REPORTS SUBMITTED BY THE FEDERAL CONTRACTORS AREN'T ADJUSTED FOR CORPORATE ACTIONS SUCH AS THE SALE OR ACQUISITION OF A BUSINESS THUS THE YEARTOYEAR COMPARISONS SHOW THE CHANGING RACIAL MAKEUP OF A COMPANY'S WORK FORCE NOT NECESSARILY ACTUAL LAYOFFS SEE RELATED ARTICLE UNEQUAL OPPORTUNITY LOSING GROUND ON THE EMPLOYMENT FRONT LOSING GROUND IN LATEST RECESSION ONLY BLACKS SUFFERED NET EMPLOYMENT LOSS FIRMS ADDED WHITES ASIANS AND HISPANICS OVERALL BUT THEY DENY ANY BIAS EFFECTS OF SENIORITY LOCATION WSJ SEPT 14 1993 9309140033 930914 COURT DISMISSES SUIT OVER DISPUTED ESTATE OF BAXTER'S FOUNDER CHICAGO CAROL FALK LOPACICH'S EFFORT TO WIN PART OF THE FORTUNE LEFT BY HER FATHER THE FOUNDER OF BAXTER INTERNATIONAL INC APPEARS ALL BUT OVER AS A FEDERAL APPEALS COURT HERE UPHELD A RULING DISMISSING HER LAWSUIT THE SUBJECT OF A NOV 25 1991 PAGE ONE ARTICLE IN THE WALL STREET JOURNAL MRS LOPACICH SUED HER BROTHER THAT YEAR SEEKING 375 MILLION AND ALLEGING HE INTENTIONALLY INFLICTED EMOTIONAL HARM THE BROTHER RALPH FALK II RECEIVED MOST OF THE FORTUNE LEFT BY THEIR FATHER SURGEON AND ENTREPRENEUR RALPH FALK THE FORTUNE INCLUDED BAXTER STOCK THAT GREW TO BE WORTH ABOUT 200 MILLION MRS LOPACICH PLUMP AS A CHILD WAS DISOWNED AND DISINHERITED BY HER FASHIONCONSCIOUS MOTHER MARIAN CITRON FALK AND LATER BALLOONED TO 340 POUNDS AS AN ADULT AND SUFFERED EMOTIONAL PROBLEMS FOR MUCH OF HER LIFE JUST PRIOR TO HER MOTHER'S DEATH IN DECEMBER 1990 MRS LOPACICH DIETED DOWN TO 142 POUNDS AND SOUGHT TO RECONCILE WITH HER MOTHER BUT MARIAN FALK HAD GROWN SENILE AND DIDN'T RECOGNIZE HER DAUGHTER THE US COURT OF APPEALS FOR THE SEVENTH CIRCUIT UPHELD A LOWERCOURT RULING THAT MRS LOPACICH DIDN'T HAVE ANY CLAIM AGAINST HER BROTHER RALPH FALK II'S LAWYER MELVIN KATTEN SAID YESTERDAY IT ENDS A CHAPTER OF A VERY SAD FAMILY RELATIONSHIP I'M SORRY THE WHOLE THING WAS UNDERTAKEN 9309140032 930914 PARAMOUNT AND VIACOM PLAN TO SEEK INVESTMENT FROM REGIONAL PHONE FIRM BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS THEY ATTEMPT TO PUT THE FINISHING TOUCHES ON THEIR 79 BILLION MERGER PARAMOUNT COMMUNICATIONS INC AND VIACOM INC SAID THEY WOULD SEEK A MAJOR INVESTMENT FROM A REGIONAL TELEPHONE COMPANY WHILE EXPRESSING CONFIDENCE THEY CAN FEND OFF ANY POTENTIAL RIVAL BIDDERS FOR PARAMOUNT THE COMPANIES SAID THEY HOPE TO CONTINUE VIACOM'S EFFORTS TO FIND A REGIONAL BELL TELEPHONE COMPANY INTERESTED IN BECOMING A PARTNER IN ITS CABLE SYSTEMS VIACOM CHAIRMAN SUMNER REDSTONE WHO WOULD CONTROL THE COMBINED COMPANIES AS CHAIRMAN AND THE LARGEST SHAREHOLDER AFTER THE MERGER CONFIRMED THAT VIACOM RECENTLY SPURNED A SIZABLE OFFER FROM A REGIONAL BELL COMPANY BELIEVED TO BE SOUTHWESTERN BELL CORP WHICH WOULD HAVE VALUED ITS CABLE SYSTEMS AT 24 BILLION IN THEIR FIRST NEWS CONFERENCE SINCE VIACOM'S BOARD APPROVED THE ACQUISITION OF PARAMOUNT ON SUNDAY MR REDSTONE AND MARTIN DAVIS PARAMOUNT'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMBINED COMPANY WOULD EXPLORE A PLETHORA OF PROGRAMMING IDEAS AND VENTURES INCLUDING NEW CABLE CHANNELS MOVIES BASED ON MTV SHOWS SUCH AS BEAVIS AND BUTTHEAD AND INTERACTIVE FORMATS FOR THE TWO COMPANIES' VAST VIDEO AND PUBLISHING LIBRARIES WE WILL BE THE MOST POWERFUL SOFTWAREDRIVEN COMPANY IN THE WORLD AND THAT IS NOT AN UNDERSTATEMENT SAID MR REDSTONE VIACOM'S CONTROLLING STOCKHOLDER HE ADDED LATER WE ARE INDEED STAGGERED BY WHAT WE HAVE WROUGHT BOTH MR REDSTONE AND MR DAVIS REBUFFED ANY SUGGESTIONS THAT NEW POTENTIAL BIDDERS COULD SCUTTLE THE DEAL DESPITE INDUSTRY SPECULATION THAT QVC NETWORK INC CHAIRMAN BARRY DILLER AND TELECOMMUNICATIONS INC CHAIRMAN JOHN C MALONE ARE LOOKING AT PARAMOUNT THIS MARRIAGE WILL NEVER BE TORN ASUNDER THE 70YEAROLD MR REDSTONE VOWED HE WAS QUICK TO MAKE CLEAR HIS INTENTIONS SHOULD SUCH A RIVAL BID EMERGE AS FOR JOHN MALONE HE'S SMART AND HE'S AGGRESSIVE HE'S ONE OF THE SMARTEST GUYS IN THE INDUSTRY I RESPECT HIM BUT I DO NOT FEAR HIM HE SAID HE FURTHER CONTENDED THAT GIVEN THE CABLE INDUSTRY'S PUBLICRELATIONS PROBLEMS IN WASHINGTON I HAVE SOME DOUBT WHETHER MR MALONE CONSIDERS THIS THE GREATEST POLITICAL CLIMATE TO GO TO WAR HE ADDED I THINK YOU MAY BE ANTICIPATING A WAR THAT DOESN'T EXIST WALL STREET TRADERS SEEMED TO CONCUR WITH THAT VIEW YESTERDAY AS PARAMOUNT SHARES CLOSED AT 6450 UP 3375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WHILE VIACOM CLASS B SHARES CLOSED AT 5675 DOWN 2625 IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING THE WAY THE STOCKS ARE TRADING THIS LOOKS LIKE A DEFINITIVE DEAL SAID JOHN TINKER A MEDIA ANALYST AT FURMAN SELZ 9309140031 930914 WHAT'S NEWS BUSINESS AND FINANCE BLACKS WERE THE ONLY RACIAL GROUP TO SUFFER A NET JOB LOSS DURING THE 199091 RECESSION AT FIRMS THAT REPORT JOB DATA TO THE EEOC ACCORDING TO A WALL STREET JOURNAL ANALYSIS COMPANIES CALLED THE SHIFT A STATISTICAL FLUKE THE UNINTENTIONAL RESULT OF CUTBACKS AND REORGANIZATIONS BUT SOME CIVILRIGHTS ADVOCATES ARGUED THAT RACIAL BIAS WAS A CONTRIBUTING FACTOR MELLON BANK SUED PRIMERICA ALLEGING THAT ITS SMITH BARNEY SHEARSON UNIT IMPROPERLY DIVERTED MUTUALFUND BUSINESS FROM BOSTON CO WHICH MELLON ACQUIRED FROM AMERICAN EXPRESS TEXACO PLANS TO SELL ITS PETROCHEMICAL BUSINESS FOR 106 BILLION AND USE THE MONEY FOR MORE PROFITABLE OIL AND GAS EXPLORATION AND DEVELOPMENT DUPONT SAID IT WILL CUT 4500 US JOBS OR 36 OF ITS WORLDWIDE WORK FORCE BY MID1994 AND PLANS TO TRIM ITS EUROPEAN STAFF OVER THE NEXT YEAR THE CHEMICAL COMPANY SAID IT WILL TAKE A 375 MILLION CHARGE TO COVER THE COST HEAVY BUYING OF VIACOM SHARES BY ITS CHAIRMAN HELPED BOOST THE STOCK'S PRICE IN THE WEEKS BEFORE THE CABLE TV FIRM AGREED TO BUY PARAMOUNT FOR 79 BILLION IN VIACOM STOCK AND CASH PARAMOUNT AND VIACOM PLAN TO SEEK A MAJOR INVESTMENT FROM A REGIONAL PHONE COMPANY AND EXPRESSED CONFIDENCE THEY CAN FEND OFF ANY POTENTIAL RIVAL BIDDERS FOR PARAMOUNT AIRLINES SCUTTLED A 20 FARE INCREASE AND SLASHED FALL FARES FOR LEISURE TRIPS BY UP TO 45 THE CUTS ARE THE STEEPEST SINCE LAST YEAR'S HALFOFF SUMMER SALE BUT THERE ARE MORE RESTRICTIONS ON USING THE DISCOUNTS IBM'S CHAIRMAN CREATED AN EXECUTIVE COMMITTEE TO COORDINATE THE COMPANY'S ACTIVITIES LOUIS GERSTNER TOLD EMPLOYEES THE NEW UNIT WILL ENSURE THAT IBM'S BUSINESSES WILL WORK IN A COHESIVE AND RESPONSIVE WAY CORNING AND UNILAB PAID 398 MILLION TO SETTLE FEDERAL ALLEGATIONS THAT SINCE 1988 MEDICAL TEST LABORATORIES THEY OPERATE SUBMITTED FALSE MEDICARE CLAIMS FOR UNNECESSARY BLOOD TESTS BANKS WOULD BE STRONGER IF THEY WERE ALLOWED TO SELL INSURANCE AND OTHER FINANCIAL SERVICES NATIONWIDE THE CURRENCY COMPTROLLER SAID CLINTON IS WEIGHING A PLAN TO FORCE MORE FIRMS TO GIVE WORKERS ADVANCE NOTICE BEFORE CLOSING PLANTS ANY COMPANY LAYING OFF 50 WORKERS WOULD HAVE TO GIVE NOTICE NO MATTER WHAT PORTION OF THE WORK FORCE THAT REPRESENTS CONGRESS PASSED A BILL ENABLING A TIMBER COMPANY TO EXCHANGE 80000 ACRES OF FOREST FOR LESS ECOLOGICALLY SENSITIVE GOVERNMENTOWNED LANDS MANY JAPANESE COMPANIES ARE SELLING CHUNKS OF STOCK HOLDINGS IN OTHER FIRMS OR CUTTING DIVIDENDS TO MEET CORPORATE EXPENSES TOKYO STOCKS ROSE 16 IN ANTICIPATION OF A GOVERNMENT ECONOMIC PACKAGE TO BE OUTLINED EARLY NEXT WEEK SONOCO PRODUCTS SIGNED A PACT TO ACQUIRE ENGRAPH IN A TRANSACTION VALUED AT ABOUT 300 MILLION MARKING A MAJOR PUSH INTO CONSUMER PACKAGING CONSECO AGREED TO PAY 2876 MILLION FOR ICH CORP'S REMAINING STAKE IN BANKERS LIFE HOLDING BOOSTING CONSECO'S OWNERSHIP IN THE CHICAGO HEALTHINSURANCE CONCERN TO 55 BONDS LEHMAN BROTHERS TREASURY INDEX 568719 UP 511 COMMODITIES OIL 1695 A BARREL UP 19 CENTS DOW JONES FUTURES INDEX 12612 OFF 097 SPOT INDEX 12082 OFF 074 DOLLAR 10632 YEN UP 027 16085 MARKS UP 00110 9309140030 930914 MARKETING & MEDIA ABC'S DALLAS AFFILIATE WON'T AIR NYPD BLUE' NEW YORK ABC'S DALLAS AFFILIATE WFAATV HAS DECIDED NOT TO AIR THE NETWORK'S NEW NYPD BLUE CITING THE PROGRAM'S PROFANITY SEX AND VIOLENCE ABC A UNIT OF CAPITAL CITIES/ABC INC SAID SO FAR ABOUT 30 OTHER STATIONS REACHING ABOUT 10 OF 942 MILLION US TELEVISION HOUSEHOLDS HAVE ALSO DECIDED NOT TO CARRY THE PROGRAM'S SEPT 21 PREMIERE ALTHOUGH SOME MAY AIR FUTURE EPISODES DALLAS IS THE COUNTRY'S EIGHTHLARGEST MARKET WITH ABOUT 2 OF ALL TV HOUSEHOLDS WFAA SAID THE GRITTY AND REALISTIC COP SHOW FROM PRODUCER STEVEN BOCHCO WAS NOT CONSISTENT WITH THE STATION'S PROGRAM STANDARDS MOST OF THE OTHER STATIONS THAT ARE NOT CARRYING THE SHOW ARE IN SMALL RURAL COMMUNITIES WHERE ABC IS NOT PARTICULARLY STRONG AN ABC SPOKESMAN SAID THE NETWORK DOESN'T EXPECT THE DEFECTIONS TO HAVE MUCH OF AN IMPACT ON THE SHOW'S VIEWERSHIP 9309140028 930914 COMMODITIES PRICES OF SOYBEAN AND CORN FUTURES INCREASE AMID FORECASTS OF WIDESPREAD FROST FOR MIDWEST BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO PRICES OF SOYBEAN AND CORN FUTURES CONTRACTS ROSE AMID PREDICTIONS FOR WIDESPREAD FROSTS THIS WEEK TO PREMATURELY END THE GROWING SEASON ACROSS MUCH OF THE UPPER MIDWEST IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY JUMPED 1325 CENTS A BUSHEL TO SETTLE AT 6335 A BUSHEL THE SEPTEMBER CORN CONTRACT ROSE 425 CENTS A BUSHEL TO SETTLE AT 2305 A BUSHEL YESTERDAY'S RALLY FOLLOWED A PLUNGE IN SOYBEAN PRICES DURING THE FRIDAY TRADING SESSION COMMODITY FUND MANAGERS REPORTEDLY SOLD FUTURES CONTRACTS COVERING ROUGHLY 50 MILLION BUSHELS OF SOYBEANS IN THE WAKE OF A MONTHLY AGRICULTURE DEPARTMENT HARVEST FORECAST THAT WAS BIGGER THAN EXPECTED BY PRIVATE ANALYSTS THE DEPARTMENT PROJECTED A 191 BILLION BUSHEL SOYBEAN CROP FRIDAY'S PRICE DROP APPARENTLY TRIGGERED BARGAIN BUYING YESTERDAY SOYBEAN PRICES HAVE DECLINED ROUGHLY 120 A BUSHEL SINCE HITTING A PEAK IN MIDJULY AMID REPORTS OF RAIN AND FLOOD DAMAGE TO CROPS AN EARLY MIDWEST FROST WOULD CAUSE SIGNIFICANT DAMAGE TO CORN AND SOYBEAN CROPS MANY FIELDS ACROSS STATES SUCH AS SOUTH DAKOTA MINNESOTA AND IOWA WON'T REACH MATURITY FOR SEVERAL WEEKS BECAUSE EXCESSIVE SUMMER RAIN SLOWED THEIR GROWTH RATE KILLING FROSTS USUALLY END THE GROWING SEASON IN LATE SEPTEMBER AND EARLY OCTOBER THE NATIONAL WEATHER SERVICE'S LATEST SIXTO10DAY FORECAST IS FOR BELOWNORMAL TEMPERATURES ACROSS MUCH OF THE MIDWEST SNOW HAS ALREADY FALLEN IN SOME SPOTS ACROSS EASTERN WYOMING AND WESTERN NEBRASKA AFTER THE CLOSE OF TRADING YESTERDAY THE WEEKLY CROP CONDITION FROM IOWA SHOWED THAT ONLY 32 OF THAT STATE'S CORN CROP HAS REACHED THE DENT STAGE WHICH IS WHEN THE KERNELS BECOME SOLID AND FIRM NORMALLY 92 OF THE STATE'S CORN CROP HAS DEVELOPED THAT FAR BY NOW THE WEEKLY REPORTS FROM THE 17 MAJOR FARM STATES SHOWED LITTLE IMPROVEMENT IN THE CORN AND SOYBEAN CROPS ACCORDING TO THE WIDELY WATCHED SURVEYS 53 OF THE US CORN CROP IS IN GOODTOEXCELLENT CONDITION COMPARED WITH 51 DURING THE PREVIOUS WEEK THE SHARE OF THE SOYBEAN CROP IN GOODTOEXCELLENT CONDITION CLIMBED TO 47 FROM 46 THE PREVIOUS WEEK IN OTHER AGRICULTURAL MARKETS PRICES OF HOG FUTURES CONTRACTS JUMPED AMID CONTINUING REPORTS THAT MEATPACKERS AREN'T SLAUGHTERING AS MUCH LIVESTOCK AS EXPECTED IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE HOG CONTRACT FOR OCTOBER DELIVERY ROSE 125 CENTS A POUND TO SETTLE AT A LIFEOFCONTRACT HIGH OF 4992 CENTS A POUND BASED ON A JUNE HOG SURVEY BY THE AGRICULTURE DEPARTMENT LIVESTOCK TRADERS HAD ANTICIPATED THE HOG SLAUGHTER TO CLIMB 3 THIS SUMMER COMPARED WITH THE SUMMER OF 1992 IN RECENT WEEKS HOWEVER THE HOG SLAUGHTER HAS INEXPLICABLY LAGGED BEHIND YEAREARLIER LEVELS CATTLE FUTURES PRICES SETTLED MOSTLY LOWER SOME TRADERS EXPECT THE AGRICULTURE DEPARTMENT ON FRIDAY TO REPORT THAT RANCHERS IN THE SEVEN MAJOR BEEFPRODUCING STATES PLACED AS MUCH AS 4 MORE CATTLE ONTO FEEDLOTS IN AUGUST COMPARED WITH AUGUST 1992 FEEDLOTS FATTEN YOUNG CATTLE FOR SLAUGHTER IN OTHER COMMODITY MARKETS PRECIOUS METALS GOLD AND SILVER FUTURES PRICES SLUMPED AS BIG INVESTORS CONTINUED TO SELL THE METALS HEAVILY AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY WAS DOWN 760 AN OUNCE TO 34480 AN OUNCE WHILE THE ACTIVELY TRADED DECEMBER SILVER CONTRACT FELL 162 CENTS AN OUNCE TO 3938 AN OUNCE THE MARKET HAS BEEN ON THE DEFENSIVE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THIS WAS A LAST GASP OF SPECULATIVE LIQUIDATION ALSO TUGGING THE MARKET LOWER WAS WEAKNESS OF GOLD PURCHASES BY THE ITALIAN JEWELRY INDUSTRY SEPTEMBER IS USUALLY A PEAK BUYING PERIOD FOR THE INDUSTRY GOLD PRICES HAVE FALLEN SHARPLY IN THE PAST TWO WEEKS AND ANALYSTS SAID YESTERDAY THAT THEY ARE LIKELY IN THE SHORT TERM TO RECOVER SLIGHTLY BUT THE RALLY WE MIGHT HAVE WOULD STILL BE DOOMED UNLESS WE SEE PHYSICAL DEMAND FROM ASIA AND SOME ECONOMIC GROWTH WHICH LOOKS NEGATIVE RIGHT NOW MR O'NEILL SAID IF WE GET ANOTHER BOUNCE IT'S LIKELY TO BE REGARDED BY THE MARKET AS A SELLING OPPORTUNITY ENERGY OIL PRICES ROSE YESTERDAY REGAINING SOME OF THEIR LOSSES OF RECENT DAYS BROKERS ATTRIBUTED THE GAINS TO A COMBINATION OF TECHNICAL FACTORS AS WELL AS THE BELIEF THAT OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE WORKING ON THE FOUNDATION OF AN AGREEMENT WHICH WOULD BRING PRODUCTION UNDER CONTROL AND HELP PROP UP OIL PRICES REPORTS THAT OPEC MAY CONSIDER A FOURTHQUARTER PRODUCTION CEILING OF 245 MILLION BARRELS A DAY ONE MILLION BARRELS HIGHER THAN THE CURRENT CEILING WAS SEEN BY TRADERS AS A SIGN THAT THE ORGANIZATION IS BECOMING MORE REALISTIC WITH REGARD TO WORLD DEMAND INDEPENDENT ANALYSTS PUT OPEC'S CRUDE OUTPUT AT BETWEEN 248 MILLION TO 25 MILLION BARRELS A DAY A HIGHER CEILING IF IT INCLUDED KUWAITI PRODUCTION WOULD STABILIZE OIL PRICES ANALYSTS SAID 9309140027 930914 MORRISON KNUDSEN GETS CONTRACT BOISE IDAHO MORRISON KNUDSEN CORP SAID IT RECEIVED A 45 MILLION CONTRACT TO MANAGE THE CONSTRUCTION OF A WASTEWATERTREATMENT PLANT FOR PFIZER INC A NEW YORK PHARMACEUTICAL AND HEALTHCARE CONCERN MORRISON IS AN ENGINEERING AND CONSTRUCTION CONCERN 9309140026 930914 LETTERS TO THE EDITOR LATE BOOMERS IN REGARD TO THE OUTLOOK AUG 24 HOW CAN BABYBOOMERS POSSIBLY BE SWELLING THE RANKS OF THE 55PLUS AGING POPULATION IF BABYBOOMERS BY DEFINITION WERE BORN AFTER WORLD WAR II I WAS BORN THE YEAR THE US ENTERED THE WAR 1941 WHEN BIRTH RATES WERE LOW AND I HAVE THREE YEARS TO GO BEFORE I'M 55 I DON'T KNOW WHY WRITERS HAVE SUCH A TOUGH TIME WITH THE ARITHMETIC INVOLVED IN CALCULATING WHO THE SOCALLED BABYBOOMERS ARE BUT I SUSPECT IT HAS TO DO WITH A SEARCH FOR NUMBERS TO BOLSTER INTRIGUING HYPOTHESES THE WAR ENDED IN 1945 IT WILL BE 2000 BEFORE EVEN ONE BABYBOOMER PASSES AGE 55 9309140025 930914 SMALL STOCK FOCUS HEALTHCARE REFORM PLANS SPUR SALES OF SOME ISSUES WEIGH DOWN MARKET BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS SAGGED WEIGHED DOWN BY SOME SELLING OF HEALTHCARE ISSUES THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES EASED 012 OR 005 TO 24644 THE MARKET FELL A LITTLE BECAUSE OF THE HEALTHCARE REFORM PLANS SAID DAVID KLASKIN PRESIDENT OF OAK RIDGE INVESTMENTS IN CHICAGO SELLING OF HEALTHCARE STOCKS WAS RELATIVELY CALM AND ORDERLY SINCE MOST OF THE STOCKS HAD ALREADY PLUNGED EARLIER THIS YEAR IN ANTICIPATION OF PRESIDENT CLINTON'S HEALTHCARE PLANS INVESTORS SIFTED THROUGH THE PROPOSALS AND CAUTIOUSLY SOLD SOME SHARES TRADERS SAID BUT MANY HEALTHCARE STOCKS FINISHED THE DAY UNCHANGED OR WITH ONLY SLIGHT CHANGES BECAUSE MANY INVESTORS DON'T BELIEVE THE REFORMS WILL TAKE EFFECT ANY TIME SOON TRADERS SAID IN THE RUSSELL 2000 INDEX OXFORD HEALTH PLANS DROPPED 1 3/4 TO 62 1/4 MEDICAL CARE AMERICA NYSE FELL 1/2 TO 16 1/2 AND TAKECARE SLID 3/4 TO 40 7/8 BUT MR KLASKIN SAID GENERIC DRUG COMPANIES SHOULD DO WELL COPLEY PHARMACEUTICALS A GENERIC DRUG COMPANY JUMPED 2 1/4 TO 45 ROBERTS PHARMACEUTICAL ROSE 1/2 TO 30 I ALSO LIKE THE HMO INDUSTRY HE SAID ANY COMPANY THAT CAN HELP REDUCE HEALTHCARE COSTS SHOULD DO WELL SEVERAL STOCKS POSTED BIG GAINS FOLLOWING ACQUISITION NEWS ENGRAPH JUMPED 2 3/8 TO 15 3/8 ENGRAPH AND SONOCO PRODUCTS SIGNED A DEFINITIVE AGREEMENT CALLING FOR SONOCO TO ACQUIRE ENGRAPH IN ATLANTA FOR ABOUT 15 5/8 A SHARE IN A TRANSACTION VALUED AT ABOUT 300 MILLION ENGRAPH IS ENGAGED IN THE CONVERSION OF PAPER PAPERBOARD AND FILM PRODUCTS INTO PACKAGING AND PRODUCT IDENTIFICATION MATERIALS SONOCO IN HARTSVILLE SC SAID THE TENDER OFFER FOR ALL OF ENGRAPH'S SHARES OUTSTANDING IS EXPECTED TO BEGIN LATER THIS WEEK AND SHOULD RUN FOR 20 BUSINESS DAYS SONOCO SLID 1/2 TO 22 1/2 COMMERCIAL BANCORP OF COLORADO SURGED 5 5/8 TO 27 7/8 THE BANK HOLDING CONCERN IN DENVER ANNOUNCED WITH KEYCORP IN ALBANY NY A DEFINITIVE AGREEMENT FOR KEYCORP TO ACQUIRE COMMERCIAL BANCORP THE AGREEMENT CALLS FOR THE EXCHANGE OF 0746 SHARE OF KEYCORP COMMON FOR EACH SHARE OF COMMERCIAL COMMON STOCK ABOUT 24 MILLION KEYCORP SHARES WILL BE ISSUED IN THE TRANSACTION THE COMPANIES SAID KEYCORP NYSE EASED 3/8 TO 40 COMMERCIAL BANCORP IS A HOLDING COMPANY THAT OWNS CENTURY BANKS FORTUNE BANCORP LEAPED 2 3/4 TO 29 7/8 AMSOUTH BANCORP IN BIRMINGHAM ALA SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FORTUNE BANCORP THE PARENT COMPANY OF FORTUNE BANK A SAVINGS BANK BASED IN CLEARWATER FLA AMSOUTH NYSE DROPPED 1 TO 30 5/8 THE AGREEMENT CALLS FOR FORTUNE SHAREHOLDERS TO RECEIVE CASH OR AMSOUTH COMMON STOCK BASED ON A FORMULA THAT INCLUDES AMSOUTH'S STOCK PRICE DURING A FUTURE PRICING PERIOD BASED ON A RECENT AVERAGE AMSOUTH PRICE OF 3180 A SHARE THE TRANSACTION IS VALUED AT ABOUT 285 MILLION OR 3425 A FORTUNE COMMON SHARE AMSOUTH SAID IIS INTELLIGENT INFORMATION SYSTEMS LTD PLUNGED 7 1/4 TO 25 THE COMPANY IN ISRAEL SAID IT EXPECTS THIRDQUARTER REVENUE TO BE LESS THAN SECONDQUARTER REVENUE OF 316 MILLION IN THE THIRD QUARTER ENDED SEPT 30 1992 THE COMPANY POSTED REVENUE OF 109 MILLION AND EARNINGS OF 41 CENTS A SHARE THE COMPANY BLAMED SLOWER SALES IN US AND EUROPEAN MARKETS FOR THE SHORTFALL THE MANUFACTURER OF COMPUTER PERIPHERAL EQUIPMENT SAID IT EXPECTS GOOD SALES IN SEPTEMBER BUT ADMITTED THAT IT WILL NOT COMPENSATE FULLY FOR SLOW VOLUME IN JULY AND AUGUST MIDDLEBY AMEX ROSE 3/4 TO 2 3/4 ON FRIDAY WHITMAN CORP SAID IT AGREED TO PAY 195 MILLION TO MIDDLEBY IN ROSEMONTROVE ILL TO SETTLE A BREACH OF CONTRACT SUIT THE SUIT AROSE AFTER WHITMAN'S HUSSMAN CORP UNIT SOLD A FOOD SERVICE EQUIPMENT BUSINESS TO MIDDLEBY IN 1989 FOR ABOUT 65 MILLION AS REPORTED IN THE WALL STREET JOURNAL MIDDLEBY CLAIMED THAT THE WHITMAN UNIT MISREPRESENTED THE PROFITABILITY OF THE BUSINESS FIRST CENTRAL FINANCIAL CORP AMEX CLOSED UP 3/4 OR 14 TO 6 1/8 BARRON'S REPORTED YESTERDAY THAT THE LYNBROOK NY INSURER IS ON TARGET TO MEET OR SURPASS MOST OF THE PERFORMANCE GOALS IT SET THREE YEARS AGO 9309140024 930914 INTERNATIONAL CHINA'S OIL NEEDS OUTSTRIP ITS SUPPLY BOOMING NATION TURNS TO IMPORTS FOREIGNERS FOR HELP BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA THIRSTS FOR OIL WITH ITS ECONOMY RACING THE VAST NATION OF 12 BILLION PEOPLE NEEDS MORE AND MORE CRUDE OIL TO KEEP ITS REFINERIES OPERATING ITS INDUSTRY BOOMING AND ITS TRANSPORT MOVING BUT ITS DOMESTIC WELLS ALREADY PUMPING FLAT OUT CAN'T QUENCH DEMAND THAT LEAVES IMPORTS THIS YEAR CHINA WILL IMPORT 110 MILLION BARRELS OF CRUDE OIL UP FROM ABOUT 90 MILLION LAST YEAR AND IT WILL EXPORT ABOUT 140 MILLION BARRELS DOWN FROM 150 MILLION OFFICIALS SAY CHINA'S OIL CONSUMPTION NOW IS JUST UNDER 11 BILLION BARRELS A YEAR ABOUT THE SAME AS ITS PRODUCTION BUT IT'S GROWING AT LEAST TWICE AS FAST AS PRODUCTION NEXT YEAR OR THE YEAR AFTER IN A MAJOR STEP AWAY FROM BEIJING'S LONGCHERISHED IDEAL OF ENERGY INDEPENDENCE CHINA IS LIKELY TO BUY MORE OIL THAN IT SELLS ANALYSTS AND OFFICIALS SAY ALTHOUGH THE COUNTRY REMAINS THE WORLD'S FIFTHLARGEST OIL PRODUCER AND WILL CONTINUE TO EXPORT SOME OF ITS HIGHGRADE OIL TO FULFILL CONTRACTS IT WILL IMPORT EVEN MORE SLAKING CHINA'S OIL NEEDS WILL MEAN BIG CHANGES FOR CHINA'S OIL INDUSTRY AND OPPORTUNITIES FOR FOREIGNERS FOR INTERNATIONAL OIL COMPANIES CHINA ALREADY HAS BECOME A VITAL MARKET AND KEY PARTNER IN OIL PRODUCTION AND REFINING EVERY SINGLE MAJOR OIL COMPANY I KNOW OF HAS BEEN GOING THROUGH CHINA PLANNING SAYS DAVID FRIDLEY WHO FOLLOWS CHINA'S ENERGY BUSINESS FROM THE EASTWEST CENTER IN HONOLULU IT'S THE WORLD'S MOST FAVORABLE MARKET IN THE LONG TERM FOR CHINA THE CHANGING OUTLOOK IMPLIES BIG ADJUSTMENTS AND PERHAPS SOME DISCORD GREATER IMPORTS WILL ACCELERATE A TREND TOWARD HIGHER DOMESTIC PRICES FOR PETROLEUM PRODUCTS BEIJING HAS BEEN TRIMMING FUEL SUBSIDIES AND LIFTING OIL AND GAS PRICES ON ITS MARCH TO A MARKET ECONOMY RIGHT NOW THREEQUARTERS OF CHINA'S CRUDE OIL IS DELIVERED AT STATESET PRICES AS EARLY AS THE END OF THE CENTURY OFFICIALS SAY ALMOST ALL CRUDE AND PETROLEUMPRODUCT PRICES WILL BE NEAR OR AT THE MUCHHIGHER LEVELS THAT PREVAIL ON THE WORLD MARKET ALREADY THE IMPACT OF FASTRISING PRICES IS BEING FELT AND RESENTED BY CONSUMERS MOST CHINESE INDIVIDUALS DON'T OWN CARS SO PRIVATE TRANSPORT COMPANIES COMPLAIN LOUDEST HOPING TO CASH IN ON RISING URBAN WEALTH AND A TRANSPORT SHORTAGE COMPANIES HAVE PUT TENS OF THOUSANDS OF NEW TAXIS ON BEIJING'S STREETS IN THE PAST COUPLE OF YEARS 30000 ALONE SINCE FEBRUARY OF THIS YEAR BY SOME ACCOUNTS AND LEASED THEM OUT TO INDEPENDENT DRIVERS SINCE JANUARY DRIVERS SAY GASOLINE PRICES HAVE DOUBLED TO 50 CENTS A LITER AT FIRST I THOUGHT THE TAXI BUSINESS WAS GOOD SAYS A 35YEAROLD TAXI DRIVER WHO LEFT A TRUCKING JOB TWO YEARS AGO NOW I FEEL CHEATED IT'S A TRAP IF THE PRICE CONTINUES TO GO UP I'LL QUIT OTHER DRIVERS THREATEN TO STAGE PROTESTS IF PRICES CONTINUE TO RISE SUCH A MOVE COULD BE VIEWED AS A THREAT BY CHINA'S AUTHORITARIAN GOVERNMENT EVEN GIANT STATEOWNED PETROLEUM COMPANIES ARE FEELING THE PINCH OF HIGHER PRICES AND THE SHORTAGE OF CRUDE OIL AT CHINA PETROCHEMICAL CO A HUGE CONGLOMERATE OF REFINERIES KNOWN AS SINOPEC THE PRICE OF CRUDE OIL IT USES TO MAKE OTHER PETROLEUM PRODUCTS HAS MORE THAN DOUBLED WHILE THE PRICES IT'S ALLOWED TO CHARGE FOR PRODUCTS HAVE CLIMBED BY LESS THAN HALF ONCEFIXED PROFIT MARGINS ARE ERODING OR BEING REVERSED AT THE SAME TIME SINOPEC CAN'T GET ENOUGH OIL TO KEEP ITS REFINERIES RUNNING AT CAPACITY LAST YEAR SINOPEC REFINED ONLY ABOUT 875 MILLION BARRELS OF CRUDE OIL EVEN THOUGH IT HAS A CAPACITY OF 107 BILLION BARRELS TO HELP FILL THE GAP IT SHELLED OUT SOME 5 MILLION A DAY FOR FOREIGN CRUDE WE HAVE SOME PROBLEMS TO SOLVE SAYS ZHANG PEIYAO A SINOPEC DEPUTY DIRECTOR AND SENIOR ENGINEER YET THE COMPANY ONE OF CHINA'S BIGGEST WITH 700000 EMPLOYEES AND ANNUAL SALES OF 185 BILLION HOPES FOR THE BEST AND IS PLANNING EXPANSIONS AS ARE OTHER DOMESTIC PETROLEUM COMPANIES BY THE END OF THE DECADE SINOPEC HOPES TO BOOST ITS REFINING CAPACITY A THIRD TO 146 BILLION BARRELS THE COST COULD EXCEED 40 BILLION THE ONLY WAY CHINESE PETROLEUM COMPANIES THINK THEY CAN MEET THE HUGE COSTS OF SUCH GROWTH IS TO BECOME MORE INTERNATIONAL SINOPEC AND ITS BIG PETROLEUM PRODUCTS RIVAL CHINA NATIONAL CHEMICALS IMPORT & EXPORT CORP OR SINOCHEM WANT TO DO MORE REFINING FOR FOREIGN CUSTOMERS AS A WAY OF RAISING FOREIGN EXCHANGE MR ZHANG SAYS SINOPEC IS FAR ALONG ON ITS PLANS WITH ROYAL DUTCH/SHELL GROUP TO DEVELOP A 5 BILLION REFINERY IN SOUTHERN CHINA'S GUANGDONG PROVINCE BUT BEFORE OIL CAN BE REFINED INTO OTHER PRODUCTS IT HAS TO BE FOUND CHINA'S MAJOR OIL PRODUCER CHINA NATIONAL PETROLEUM CORP HAS DRAINED MUCH OF ITS ONETIME GUSHERS AT DAQING IN NORTHERN CHINA WORRIED THAT THE FIELD MAY BE PAST ITS PEAK CNPC IS ABOUT TO HIRE FOREIGN OIL COMPANIES TO LOOK FOR OIL AT LEAST 68 COMPANIES HAVE APPLIED IN THE FIRST ROUND OF BIDDING ACCORDING TO CNPC'S GENERAL MANAGER WANG TAO BUT FOREIGN OIL COMPANIES AND CNPC ITSELF ARE MOST INTERESTED IN THE 70 BILLION OR SO BARRELS OF OIL THOUGHT TO BE LYING UNDER THE FORBIDDING DESERTS OF XINJIANG IN CHINA'S FAR WEST SAUDI ARABIA BY CONTRAST HAS RESERVES OF ABOUT 255 BILLION BARRELS THE PROBLEM IS GETTING AT THE OIL IN A TEXASSIZED AREA WHERE 200FOOT SHIFTING SAND DUNES AND 110DEGREE FAHRENHEIT TEMPERATURES ARE COMMON THEN THERE'S THE CHALLENGE OF MOVING THE OIL TO WHERE IT WILL DO SOME GOOD CNPC WANTS TO BUILD A 1900MILE PIPELINE TO CARRY OIL FROM XINJIANG TO SICHUAN PROVINCE IN CENTRAL CHINA THE COST COULD BE AS HIGH AS 10 BILLION CHINESE OFFICIALS SAY WE CAN MANAGE TO PROVIDE THIS SUM OURSELVES MR WANG SAYS BUT OF COURSE IF THERE'S A POSSIBILITY WE ALSO HOPE WE CAN USE FOREIGN CAPITAL SO DETERMINED IS CNPC TO ATTRACT FOREIGN CAPITAL TO DEVELOP THE OIL FIELDS IN XINJIANG THAT BAI SHIYIN A CNPC DIRECTOR OFFERS IN AN INTERVIEW TO SLASH THE COST OF DATA USED BY PROSPECTIVE BIDDERS SOME FOREIGN COMPANIES HAD COMPLAINED THAT THE 16 MILLION PRICE TAG FOR SEISMIC DATA WAS TOO HIGH WITH SOARING OIL NEEDS CHINA ISN'T AFRAID TO ACT A LITTLE DESPERATE IF FOREIGNERS HAVE TROUBLE SELLING THE CRUDE THEY FIND THE CHINESE GOVERNMENT WILL BE WILLING TO BUY IT AT INTERNATIONAL PRICES MR BAI PROMISES BUT PERHAPS THE CLEAREST SIGN OF CHINA'S ANXIOUSNESS ABOUT OIL CAME IN MIDAUGUST WHEN CNPC ANNOUNCED THAT IT WAS TAKING OVER AN OLD OIL FIELD FROM WHICH OFFICIALS BELIEVE THEY CAN STILL EXTRACT 200 MILLION TO 300 MILLION BARRELS OF OIL ITS LOCATION PERU 9309140023 930914 INTERNATIONAL SOUTH CHINA MORNING POST TRADES AGAIN FALLS 10 HONG KONG SHARES OF SOUTH CHINA MORNING POST HOLDINGS LTD RESUMED TRADING MONDAY IN HONG KONG AFTER A SIXDAY SUSPENSION AND PROCEEDED TO FALL NEARLY 10 THE SHARES HAD BEEN SUSPENDED PENDING ANNOUNCEMENT OF A SALE ON SUNDAY MALAYSIAN BUSINESSMAN ROBERT KUOK DISCLOSED A PLAN TO BUY A 35 STAKE IN SOUTH CHINA MORNING POST FROM NEWS CORP OF AUSTRALIA FOR US349 MILLION THE DEAL DREW CRITICISM FOR GIVING MR KUOK EFFECTIVE CONTROL OF THE HONG KONG PUBLISHER WITHOUT OFFERING MINORITY SHAREHOLDERS A PREMIUM KERRY MEDIA LTD A SHELL COMPANY CONTROLLED BY MR KUOK IS PAYING ABOUT HK516 67 US CENTS A SHARE FOR THE STAKE YET THE SHARES FELL NEARLY 10 TO HK485 WHEN TRADING RESUMED MONDAY AFTERNOON BECAUSE OTHER STOCKHOLDERS AREN'T BEING ASKED FOR THEIR SHARES IT STILL ISN'T CLEAR WHAT WILL BECOME OF THE 15 SHARE IN SCMP THAT NEWS CORP WILL RETAIN IN THE DEAL THE DEAL WILL GO THROUGH ONLY IF HONG KONG REGULATORS ASSURE MR KUOK BY SEPT 25 THAT HIS GROUP WON'T BE REQUIRED TO MAKE A PUBLIC OFFER FOR ALL OF THE PUBLISHER'S SHARES A TRANSACTION THAT WOULD COST AS MUCH AS US1 BILLION UNDER CERTAIN CONDITIONS HONG KONG'S TAKEOVER CODE WOULD NECESSITATE AN OFFER FOR THE WHOLE COMPANY 9309140022 930914 LAW LEGAL BEAT LAWYERS EARN LESS FROM '90S TAKEOVERS BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE TAKEOVER WORK TURNED MANY LAWYERS INTO MILLIONAIRES IN THE 1980S BUT THE CURRENT TAKEOVER BOOMLET ISN'T EXPECTED TO BE QUITE SO LAWYERFRIENDLY IT'S NOT THAT LAWYERS AREN'T DELIGHTED WITH THE LATEST SPATE OF DEALS CULMINATING IN VIACOM INC'S ANNOUNCEMENT THAT IT IS ACQUIRING PARAMOUNT COMMUNICATIONS INC FOR 79 BILLION THE CLUSTER OF MAJOR MERGERS AND ACQUISITIONS IN THE PAST FEW MONTHS IS KEEPING SOME BIG LAW FIRMS BUSIER THAN THEY HAVE BEEN IN YEARS BUT THE WORK IS EXPECTED TO BE LESS LUCRATIVE FOR LAWYERS THAN IT WAS IN THE PAST DECADE MOSTLY BECAUSE THE CURRENT DEALS ARE CONSENSUAL RATHER THAN HOSTILE TRANSACTIONS AND DON'T INVOLVE NEARLY AS MUCH LITIGATION IN ADDITION THE DEALS ARE SIMPLER TO STRUCTURE BECAUSE THEY GENERALLY DON'T INVOLVE SUCH COMPLEX FINANCING ARRANGEMENTS IN THE OLD HOSTILE TAKEOVERS WHICH OFTEN WERE FUELED BY JUNKBOND FINANCING THE LITIGATION COMPONENT WAS AT LEAST 50 OF THE LEGAL WORK SAID JACK H NUSBAUM A PARTNER AT WILLKIE FARR & GALLAGHER IN NEW YORK IN THE RECENT FRIENDLY DEALS THERE IS OFTEN MORE CORPORATE WORK TO BE DONE BUT THAT STILL DOESN'T MAKE UP FOR THE VERY FRENETIC LITIGATION TIME THE OVERALL LEGAL TIME IS PROBABLY LESS BECAUSE YOU DON'T HAVE THE LITIGATION SAID MR NUSBAUM WHOSE FIRM NOW REPRESENTS MATTEL INC IN ITS ACQUISITION OF FISHERPRICE INC NO LITIGATORS ARE INVOLVED IN ANY SIGNIFICANT WAY IN THE DEAL BETWEEN VIACOM AND PARAMOUNT AND IN MERCK & CO'S PLANNED ACQUISITION OF MEDCO CONTAINMENT SERVICES INC THERE ALSO HAS BEEN NO LITIGATION BETWEEN THE PARTIES STEPHEN R VOLK WHO REPRESENTS MEDCO SAID HIS CLIENT IS CONTENDING ONLY WITH ROUTINE SHAREHOLDERS' LITIGATION AND A PRIVATE ANTITRUST SUIT NEITHER OF WHICH ARE IMPEDIMENTS TO THE DEAL IT'S NOT LIKE TAKEOVER LITIGATION SAID MR VOLK WHOSE FIRM SHEARMAN & STERLING OF NEW YORK ALSO IS ADVISING VIACOM IN ITS DEAL ON THE CORPORATE SIDE FEWER LAWYERS ARE NEEDED TO HELP ARRANGE COMPLICATED LEVELS OF FINANCING BECAUSE TYPICALLY THERE ARE NONE IN THE HEAVILY DEBTLADEN DEALS OF THE '80S THERE WAS A LOT OF LAWYERING THAT THERE ISN'T WHEN THERE ISN'T A LOT OF LEVERAGING SAID JOHN G FINLEY A MEMBER OF THE 10LAWYER TEAM REPRESENTING PARAMOUNT AT SIMPSON THACHER & BARTLETT OF NEW YORK THERE ARE OTHER DIFFERENCES AS WELL BETWEEN THE TWO TAKEOVER ERAS WHILE OUTSIDE COUNSEL HAD THE LEAD ROLE IN MANY OF THE '80S DEALS IN SOME INSTANCES LAWYERS FROM HIGHPOWERED LAW FIRMS NOW ARE SHARING MORE RESPONSIBILITY WITH INHOUSE LAWYERS MR VOLK SAID THAT IN THE VIACOM AND MEDCO DEALS COMPANY LEGAL STAFF IS VERY MUCH PART OF THE MANAGEMENT AND VERY MUCH CAUGHT UP IN GETTING THE DEAL DONE HE CALLED IT A COOPERATIVE EFFORT TO BE SUREE ARE SOME ADDED PLAYERS INVOLVED IN MERGER DEALS FEW OF THESE DEALS ARE CONCLUDED WITHOUT ENVIRONMENTAL LAWYERS SCRUTINIZING POTENTIAL LIABILITY A STEP THAT WAS LESS COMMON IN THE PAST AND TAX LAWYERS ALSO ARE PLAYING A GREATER ROLE BECAUSE THE INVOGUE STOCK DEALS MOSTLY ARE STRUCTURED FOR THEIR TAX ADVANTAGES STILL ON BALANCE ALL THIS TAKEOVER WORK ADDS UP TO FEWER BILLABLE HOURS WHICH TRANSLATE INTO FEWER DOLLARS GOING TO LAW FIRMS AND BECAUSE THE WARLIKE URGENCY OF HOSTILE TAKEOVERS IS GONE LAW FIRMS ARE UNLIKELY TO TACK PREMIUMS ONTO HOURLY BILLS THE WAY THEY USED TO FOR WORK THAT PUSHED THE BOUNDARIES OF HUMAN ENDURANCE AND INTELLECTUAL POWER NEVERTHELESS EVEN WITHOUT THE WINDFALL PROFITS LAW FIRM PARTNERS ARE GRINNING OVER THEIR SECURITIES FILINGS WHEN THE RECESSION HIT SULLIVAN & CROMWELL OF NEW YORK REASSIGNED ABOUT A THIRD OF THE MORE THAN 25 LAWYERS IT HAD DOING DEALS ACCORDING TO PARTNER BENJAMIN F STAPLETON NOW THE ROUGHLY 15 LAWYERS LEFT DOING THE WORK ARE WORKING FLAT OUT WE'RE GOING TO HAVE TO START ADDING PEOPLE HE SAID AND THE FLURRY OF DEALS MAY OFFER LAW FIRMS A BRIEF RESPITE FROM PRESSURE FROM CLIENTS TO HOLD DOWN BILLING RATES AND EVEN OFFER DISCOUNTS AS HAS BECOME COMMON IN RECENT YEARS WHEN IT COMES TO BIG MERGER TRANSACTIONS IT SEEMS LEGAL COSTS ARE NOT THE HIGHEST PRIORITY FOR INHOUSE COUNSEL EARL H DOPPELT DEPUTY GENERAL COUNSEL AT PARAMOUNT SAID THAT WHILE THERE'S NO DEMAND FOR LITIGATORS ON HIS DEAL CERTAINLY THERE'S ONE SPECIALTY THAT'S STILL IN DEMAND AND THAT'S GOOD JUDGMENT THE GOOD JUDGMENT IS GOING TO BE AT THE BIG FIRMS HE SAID IN AN M&A TRANSACTION LIKE THIS THE IDEA IS TO GET IT DONE RIGHT THE COST ISSUES ARE SECONDARY THE EUROPEAN COMMUNITY COMMISSION HAS ISSUED A GUIDEBOOK ADVISING COMPANIES ON HOW TO IMPLEMENT EC RULES TO COMBAT SEXUAL HARASSMENT IN THE WORKPLACE THE REPORT COMPILED BY THE COMMISSION'S EQUAL OPPORTUNITIES UNIT RECOMMENDS THAT EMPLOYERS CLEARLY SPELL OUT IN THEIR COMPANY POLICIES WHAT KIND OF BEHAVIOR AMOUNTS TO SEXUAL HARASSMENT DURING INVESTIGATIONS OF SEXUAL HARASSMENT COMPANIES ARE ADVISED TO DRAW UP WRITTEN REPORTS ON EVIDENCE SUBMITTED AND TO GIVE EACH PARTY THE REPORT TO CONFIRM ITS ACCURACY IN ASSESSING A SEXUALHARASSMENT CASE THE GUIDEBOOK SAYS EMPLOYERS SHOULD CONSIDER WHETHER THE COMPLAINANT DISCUSSED THE HARASSMENT WITH HER DOCTOR FAMILY COWORKERS OR FRIENDS OR WHETHER HER BEHAVIOR OR DEMEANOR CHANGED AFTER THE ALLEGED INCIDENT WHO'S NEWS CHARLES D TOY A PARTNER AT NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL OF OVERSEAS PRIVATE INVESTMENT CORP THE FEDERAL AGENCY KNOWN AS OPIC PROVIDES RISK INSURANCE AND LOAN GUARANTEES TO US COMPANIES FOR PROJECTS IN DEVELOPING COUNTRIES COMPUTERLAW SPECIALIST ALFRED M WURGLITZ JOINED THE WASHINGTON OFFICE OF O'MELVENY & MYERS A LOS ANGELES LAW FIRM MR WURGLITZ PREVIOUSLY WAS GENERAL COUNSEL OF PRC INC A COMPUTERSYSTEMS UNIT OF BLACK & DECKER CORP DENVER SWITCH THREE PARTNERS FROM DENVER LAW FIRM HOLLAND & HART M JULIA HOOK KENNETH D HUBBARD AND PAUL J SCHLAUCH JOINED THE NATURALRESOURCES GROUP OF BALLARD SPAHR ANDREWS & INGERSOLL THE NEW PARTNERS WILL WORK IN THE PHILADELPHIA LAW FIRM'S 30LAWYER DENVER OFFICE FAMILY VIOLENCE NEVADA HAS BECOME THE FIRST STATE TO REQUIRE ITS JUDGES TO RECEIVE TRAINING ON THE ISSUES OF FAMILY VIOLENCE THE STATE SUPREME COURT ORDERED ALL NEVADA JUDGES TO ATTEND A ONEDAY SEMINAR ON THE SUBJECT THE COURT SAID VIOLENCE AT HOME IS THE CAUSE OF A SUBSTANTIAL PORTION OF CRIMINAL AND DOMESTIC RELATIONS CASE FILINGS AND IS BY FAR THE GREATEST CAUSE OF VIOLENCE OCCURRING IN AND AROUND AMERICAN COURTROOMS IMPROVING JURY DUTY NEW YORK CHIEF JUDGE JUDITH S KAYE APPOINTED A BLUERIBBON PANEL TO REVIEW THE STATE'S JURY SYSTEM AND RECOMMEND WAYS TO IMPROVE IT THE COMMITTEE WILL BE HEADED BY COLLEEN MCMAHON OF NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON CHARLES GOLDSMITH IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9309140021 930914 POLITICS & POLICY US COMPTROLLER FAVORS LETTING BANKS SELL INSURANCE OTHER FINANCIAL SERVICES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BANKS WILL BE STRONGER AND SAFER IF THEY ARE ALLOWED TO SELL INSURANCE AND OTHER FINANCIAL SERVICES AND TO OPERATE NATIONWIDE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG SAID IN A SPEECH FILLED WITH GOOD NEWS FOR BANKS MR LUDWIG ALSO SAID HE FAVORS AGGRESSIVE EFFORTS TO REDUCE THE COSTS OF REGULATION AS LONG AS THE CHANGES DON'T COMPROMISE BANK SAFETY AND SOUNDNESS IN ADDITION HE PREDICTED THAT COMMUNITYDEVELOPMENT EQUALLENDING AND OTHER SOCIAL RULES IMPOSED ON BANKS WILL BE EXTENDED TO NONBANK COMPANIES THAT EXTEND CREDIT AND OFFER FINANCIAL SERVICES MR LUDWIG WHO REGULATES NATIONALLY CHARTERED BANKS FORECAST A MORE LEVEL PLAYING FIELD FOR COMMERCIAL BANKS NEW OBLIGATIONS FOR OTHER FINANCIALSERVICES PROVIDERS AND I HOPE IMPROVED ACCESS TO CAPITAL FOR AMERICA'S LOWINCOME INDIVIDUALS AND NEIGHBORHOODS HE GAVE NO DETAILS BUT IN THE PAST CLINTON ADMINISTRATION OFFICIALS HAVE RAISED THE POSSIBILITY OF EXTENDING COMMUNITY REINVESTMENT REQUIREMENTS TO THE 17 TRILLION MUTUAL FUND INDUSTRY MR LUDWIG'S SPEECH TO A FINANCIALSERVICES CONFERENCE SPONSORED BY MERRILL LYNCH & CO IN NEW YORK IS THE CLEAREST STATEMENT TO DATE ON THE CLINTON ADMINISTRATION'S STANCE ON MAJOR QUESTIONS ABOUT THE STRUCTURE OF THE BANKING INDUSTRY IT'S A VERY SIGNIFICANT SPEECH BECAUSE IT'S THE FIRST TIME ANYBODY IN THE ADMINISTRATION HAS LAID IT ALL OUT SAID EDWARD YINGLING CHIEF LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION MR LUDWIG'S 25YEAR FRIENDSHIP WITH PRESIDENT CLINTON GIVES HIM SPECIAL INFLUENCE ON FINANCIALPOLICY ISSUES BUT THE FACT THAT HE SUPPORTS CHANGES WHICH WOULD FREE BANKS FROM DEPRESSIONERA RESTRAINTS ON THEIR ABILITY TO SELL INSURANCE AND OFFER A FULL RANGE OF SECURITIES AND INVESTMENT SERVICES DOESN'T NECESSARILY MEAN THE CHANGES WILL OCCUR FOR YEARS INSURANCE COMPANIES AND BROKERAGE FIRMS HAVE LOBBIED HARD TO KEEP BANKS OUT OF THEIR BUSINESSES IN ADDITION MANY SMALL BANKS AND CONSUMER GROUPS WHICH FEAR THE CONCENTRATION OF FINANCIAL POWER OPPOSE LARGE BANKS' EFFORTS TO WIN THE RIGHT TO ESTABLISH NATIONWIDE BRANCH NETWORKS PARTIALLY BECAUSE OF THE COST OF REGULATION BANKS HAVE BEEN LOSING CUSTOMERS BORROWERS AS WELL AS DEPOSITORS TO COMPETITORS FOR DECADES MR LUDWIG ARGUED THAT BANKS WILL BE HEALTHIER IF THEY CAN EXPAND INTO NEW SERVICES MANY OF WHICH GENERATE FEEINCOME TO SUPPLEMENT EARNINGS FROM LOANS LENDING IS INHERENTLY RISKY AND BANK LENDING IS GETTING RISKIER AS HIGHERQUALITY CREDITS INCREASINGLY MOVE OUT OF THE BANKING SYSTEM MR LUDWIG SAID IF WE LEAVE BANKS WITHOUT OTHER SAFE LINES OF BUSINESS WE ARE SOWING THE SEEDS OF DISASTER GUARANTEEING THAT THE INDUSTRY WILL BECOME STEADILY LESS SAFE AND LESS SOUND AND THAT WE WILL PAY THE PRICE TOMORROW ALREADY THE BANKING INDUSTRY AND INSURANCE AGENTS ARE PREPARING FOR A POSSIBLE LEGISLATIVE BATTLE OVER THE EXTENT OF BANK POWERS TO SELL INSURANCE AND ANNUITIES MR LUDWIG SAID THAT NEW BANK PRODUCTS AND SERVICES SHOULD BE PERMISSIBLE IF THEY BENEFIT CONSUMERS WITHOUT COMPROMISING BANK SAFETY AND SOUNDNESS TWO YEARS AGO AFTER MORE THAN A THOUSAND BANK FAILURES CONGRESS PASSED A LAW THAT TIGHTENED BANK REGULATION TO REDUCE THE NUMBER AND COST OF BANK CLOSINGS MANY BANKERS COMPLAIN THAT THE NEW LAW CHOKES THEM WITH RED TAPE BUT MR LUDWIG PRAISED THE LAW FOR HELPING BANKS REBUILD CAPITAL AND REDUCE RISK YESTERDAY SEN DONALD RIEGLE D MICH CHAIRMAN OF THE SENATE BANKING COMMITTEE SAID THE PANEL WILL CONSIDER BILLS DEALING WITH INTERSTATE BANKING AND THE SALE OF INSURANCE BY BANKS THIS YEAR IN ADDITION HE SAID THE COMMITTEE HAS ADDED PROVISIONS DESIGNED TO REDUCE PAPERWORK AND REPORTING BURDENS ON BANKS TO A BILL THAT WOULD ESTABLISH A FEDERAL FUND TO SUPPORT COMMUNITYDEVELOPMENT LENDING THE COMMITTEE IS EXPECTED TO COMPLETE WORK ON THE COMMUNITYDEVELOPMENT BILL WHICH ALSO CONTAINS PROVISIONS TO SPUR BANK LENDING TO SMALL FIRMS NEXT WEEK 9309140020 930914 LETTERS TO THE EDITOR SCHWINN YOUTHFUL CONFIDENT BANKRUPT YOUR AUG 23 EDITORIAL SPINNING WHEELS AGAIN ABOUT THE SCHWINN BICYCLE CO AND ITS EXTRAORDINARY DEALER NETWORK WAS RIGHT ON TARGET FROM 1950 TO RETIREMENT IN 1980 I WAS PRIVILEGED TO HELP THE SECOND AND THIRD GENERATIONS OF THE SCHWINN FAMILY BUILD THEIR OUTSTANDING ORGANIZATION OF SMALL FAMILYOWNED DEALERSHIPS THAT SET A NEW STANDARD OF FACTORYTRAINED SERVICE AND CUSTOMER SATISFACTION IN THE BICYCLE BUSINESS THEY COMPETED SUCCESSFULLY WITH ALL OTHER RETAILERS OF BICYCLES AND MADE IT POSSIBLE FOR SCHWINN TO HOLD AN IMPORTANT NICHE IN THE BICYCLE MARKET THAT IS UNTIL THE FOURTH GENERATION OF THE SCHWINNS FRESH OUT OF COLLEGE TOOK OVER MANAGEMENT OF THE COMPANY IN 1980 AND WENT BANKRUPT IN 1992 THERE IS A STRIKING PARALLEL HERE BETWEEN WHAT THE YOUNG INEXPERIENCED BUT SUPREMELY CONFIDENT MEMBERS OF THE SCHWINN FAMILY DID TO THE FAMILYOWNED BUSINESS AND WHAT THE YOUNG INEXPERIENCED BUT SUPREMELY CONFIDENT CLINTON TEAM IS DOING TO THE US ECONOMY AS PART OF THE '60S GENERATION LOADED WITH TEXTBOOK WISDOM THEY WERE NOT AFRAID TO TAKE BOLD STEPS TO CORRECT THE MANY MISTAKES MADE BY PREVIOUS MANAGEMENTS IT WAS AND IS A PRESCRIPTION FOR DISASTER LIKE THE CLINTON TEAM THE NEW SCHWINN FAMILY TEAM BELIEVED IN CENTRALIZED DECISIONMAKING AND CONTROL RATHER THAN RELYING ON DEALER GUIDANCE IN KEEPING AHEAD OF CONSUMER PREFERENCES AND MARKET TRENDS AS ONE OF THE NEW VICE PRESIDENTS SAID IN SQUELCHING A COMPLAINT FROM A LEADING SCHWINN DEALER WELL WE'RE NOT LETTING THE DEALERS RUN THE COMPANY ANYMORE HE WAS RIGHT DEALERS ARE NO LONGER RUNNING THE COMPANY NEW OWNERS ARE YES SCHWINN DEALERS ARE A HARDY LOT AND WON'T GIVE UP EASILY BUT MANY IF NOT MOST ARE S CORPORATIONS THAT WILL BE HIT HARD BY PRESIDENT CLINTON'S NEW TAXES AND BY OVERREGULATION AND A SICK ECONOMY AND THE NEW OWNERS AT SCHWINN HAVE YET TO DEMONSTRATE ANY UNDERSTANDING THAT THEIR FUNCTION IS TO SUPPLY SCHWINN DEALERS WITH EVERYTHING THEY NEED TO SUCCEED THEY CAN'T SUCCEED UNTIL THE DEALERS SUCCEED FIRST AND GOVERNMENT CAN'T SUCCEED UNTIL OUR ECONOMY SUCCEEDS FIRST MR BURCH IS RETIRED VICE PRESIDENT MARKETING OF SCHWINN BICYCLE CO 9309140019 930913 BAXTER INTERNATIONAL LOSES CONTRACTS OF NEARLY 50 MILLION FROM PREMIER BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FINANCIAL FALLOUT FROM BAXTER INTERNATIONAL INC'S LEGAL DIFFICULTIES CONTINUED AS THE COMPANY LOST LABORATORYSUPPLY AND SURGICALGLOVE CONTRACTS TOTALING NEARLY 50 MILLION FROM A MAJOR HOSPITAL GROUP THE DECISION BY PREMIER HOSPITALS ALLIANCE TO SWITCH THIS NEW BUSINESS COMPOUNDS BAXTER'S BUSINESS WOES AND COMES IN THE WAKE OF AN EARLIER SHIFT BY THE 183HOSPITAL GROUP OF A SUBSTANTIAL PORTION OF ANOTHER BIG CONTRACT AWAY FROM BAXTER IN THAT EARLIER MOVE THE NATIONWIDE HOSPITAL SYSTEM SPLIT UP 125 MILLION OF HOSPITALSUPPLY BUSINESS THAT PREVIOUSLY HAD GONE ENTIRELY TO BAXTER IN MAY PREMIER HAD SAID IT HAD CONCERNS OVER BAXTER'S ETHICS AND BUSINESS PRACTICES AND ANNOUNCED PLANS TO REDUCE ITS BUSINESS WITH THE DEERFIELD ILLBASED SUPPLIER BY AS MUCH AS 50 MILLION PREMIER CITED AMONG OTHER FACTORS BAXTER'S GUILTY PLEA IN MARCH TO VIOLATING THE FEDERAL LAW BANNING COOPERATION WITH THE ARAB BOYCOTT OF ISRAEL THE POTENTIAL REVENUE LOSSES TO BAXTER NOW COULD WELL SURMOUNT THAT FIGURE THE LATEST BLOW TO BAXTER WAS A 42 MILLION PREMIER CONTRACT FOR THE DELIVERY OF LABORATORY EQUIPMENT WHICH THE HOSPITAL CHAIN AWARDED FRIDAY TO CURTIN MATHESON SCIENTIFIC INC OF HOUSTON LAST YEAR'S VERSION OF THE CONTRACT TOTALING 32 MILLION HAD GONE TO BAXTER THE CONTRACT TO SUPPLY PREMIER HOSPITALS WITH PRODUCTS FROM BLOOD COLLECTION CONTAINERS AND BLOODTEST REAGENTS TO MICROSCOPE SLIDES PREMIER ALSO IN RECENT WEEKS AWARDED TO OTHER COMPANIES CONTRACTS FOR AT LEAST 5 MILLION OF SURGICAL AND EXAMINATION GLOVES BUSINESS PREVIOUSLY HELD BY BAXTER ON A SOLESOURCE BASIS FURTHER PREMIER EXECUTIVES SAID OFFICIALS AT ITS MEMBER HOSPITALS WILL BE DECIDING INDIVIDUALLY HOW MUCH OF THE 125 MILLION HOSPITALSUPPLY DISTRIBUTION BUSINESS WILL WIND UP WITH BAXTER AND HOW MUCH WITH A COMPETITOR OWENS & MINOR INC OF RICHMOND VA THESE LOCAL HOSPITAL OFFICIALS HAVE CONSIDERABLE DISCRETION IN DECIDING BETWEEN THE TWO COMPANIES SELECTED BY PREMIER'S PURCHASING OFFICIALS AT PREMIER HEADQUARTERS IN WESTCHESTER ILL THE POTENTIAL IS CERTAINLY THERE FOR THE AMOUNT SWITCHED FROM BAXTER TO EXCEED 50 MILLION BUT THAT'S UP TO OUR HOSPITALS SAID JOHN W STRONG SENIOR VICE PRESIDENT AT PREMIER ANTHONY J RUCCI BAXTER SENIOR VICE PRESIDENT SAID BAXTER LOST THE LAB SUPPLY CONTRACT THROUGH COMPETITIVE BIDDING AND ADDED PREMIER HAS NOT GIVEN US ANY INDICATION THEY PLAN TO BE ANY MORE SEVERE THAN THEY HAD INDICATED A BAXTER SPOKESMAN SAID THE COMPANY HAS WON NEW CONTRACTS RECENTLY WITH OTHER HOSPITALS MOST OF THE IMPACT FROM PREMIER'S DECISIONS WILL BEGIN TO BE FELT IN BAXTER EARNINGS BEGINNING IN THE FOURTH QUARTER BAXTER'S STOCK PRICE ALREADY WAS BATTERED LAST WEEK AFTER THE COMPANY DISCLOSED ITS THIRDQUARTER NET INCOME WILL LIKELY FALL SHORT OF LAST YEAR'S 148 MILLION OR 53 CENTS A SHARE A GOOD PORTION OF THE EARNINGS SHORTFALL THIS YEAR DERIVES FROM SLIMMED PROFIT MARGINS IN THE COMPANY'S CORE HOSPITALSUPPLY DIVISION THE COMPANY ANNOUNCED IT WOULD TAKE A THIRDQUARTER 13 MILLION CHARGE RELATED TO RESTRUCTURING AND THE ELIMINATION OF 350 JOBS IN ITS DIAGNOSTICS DIVISION BAXTER EXECUTIVES ALSO TOLD SECURITIES ANALYSTS THAT BECAUSE OF REDUCED PROFIT MARGINS IT IS NOT OUT OF THE QUESTION THAT A FURTHER CHARGE MAY BE NECESSARY IN THE FORESEEABLE FUTURE ANALYSTS QUOTED BAXTER CHAIRMAN VERNON R LOUCKS JR AS SAYING BAXTER'S DIFFICULTIES ARE INDUSTRYWIDE AND THAT THE US HOSPITALSUPPLY BUSINESS IS IN A FREE FALL BAXTER SHARES FELL 17 IN TWO DAYS LAST WEEK AFTER CLOSING TUESDAY AT 26375 BAXTER STOCK CLOSED UNCHANGED AT 21875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY 9309140018 930914 BUSINESS BRIEF CROWN CORK & SEAL CO VENTURE FORMED TO MAKE BEVERAGE CANS IN JORDAN CROWN CORK & SEAL CO PHILADELPHIA SAID IT FORMED A JOINT VENTURE TO PRODUCE TWOPIECE ALUMINIUM BEVERAGE CANS IN JORDAN TERMS WEREN'T DISCLOSED THE VENTURE KNOWN AS MIDDLE EAST CAN MANUFACTURING CO WILL BE 30OWNED BY CROWN CORK & SEAL ITS PARTNERS INCLUDE SHAHEEN BUSINESS & INVESTMENT GROUP OF JORDAN AND AHMED HAMAD ALGOSAIBI & BROTHERS OF SAUDI ARABIA CROWN CORK IS A MAKER OF METAL AND PLASTIC CONTAINERS CROWNS CLOSURES AND PACKAGING MACHINERY CONSTRUCTION OF THE PLANT TO BE LOCATED IN AMMAN JORDAN WILL BEGIN WITHIN 60 DAYS AND ACTUAL PRODUCTION IS EXPECTED BY THE END OF 1994 THE PLANT IS EXPECTED TO SERVE THE MARKETS OF JORDAN SYRIA LEBANON AND EGYPT 9309140017 930914 PITCHMAN OFFERS DISPOSSESSED FARMERS A GLIMMER OF HOPE PAY ROY SCHWASINGER JUST 300 HE'LL GET BACK YOUR LAND AND A PIECE OF PIE IN THE SKY BY ENRIQUE J GONZALES STAFF REPORTER OF THE WALL STREET JOURNAL TULIA TEXAS IN ROY SCHWASINGER BILL BIVENS SAW A GLIMMER OF HOPE HOPE THAT HE COULD RECOVER HIS FAMILY'S FARM AND CATTLE RANCH THAT HAD BEEN LOST TO CREDITORS HIS HOPES WERE DASHED NOW JUST 11 MONTHS AFTER MR SCHWASINGER CAME TO TEXAS PREACHING HIS GOSPEL OF LEGAL REDRESS FOR FARMERS AGAINST THE GOVERNMENT MR BIVENS IS IN ANOTHER SORT OF PICKLE IN A 13COUNT INDICTMENT HANDED UP BY A FEDERAL GRAND JURY IN AMARILLO ON JULY 28 MR SCHWASINGER MR BIVENS AND NINE OTHERS WERE CHARGED WITH OBSTRUCTION OF JUSTICE FOR ALLEGEDLY FILING FALSE AND FRIVOLOUS LIENS TOTALING HUNDREDS OF MILLIONS OF DOLLARS ON PERSONAL PROPERTY HELD BY JUDGES AND BANKRUPTCY TRUSTEES IN LUBBOCK WHO ARE INVOLVED IN THE DEFENDANTS' BANKRUPTCY CASES TO DATE AUTHORITIES HAVE ARRESTED 10 OF THE 11 INCLUDING MR BIVENS AND MR SCHWASINGER BOTH ARE OUT ON BAIL AWAITING TRIAL OTHER LIVES HAVE BEEN SIMILARLY DISRUPTED BY MR SCHWASINGER WHOSE FORT COLLINS COLO ORGANIZATION WE THE PEOPLE HAS URGED FARMERS AND RANCHERS WHO HAVE LOST THEIR PROPERTY THROUGH FORECLOSURES TO FLOOD COURTS IN A DOZEN STATES WITH CLAIMS SO FAR THEY HAVE FILED HUNDREDS OF BOGUS UNIFORM COMMERCIAL CODE LIENS AGAINST THEIR FOES THE LIENS ARE FILED WITH COUNTY CLERKS AND SOME STATE CLERKS OFFICES THAT USUALLY DON'T HAVE THE AUTHORITY OR RESOURCES TO REVIEW OR REJECT FILINGS ON THEIR MERITS THAT DOESN'T MEAN THEY ARE VALID OR LEGITIMATE SAYS JOHN DAVIS AN INVESTIGATOR FOR THE DISTRICT ATTORNEY'S OFFICE IN FORT COLLINS YOU CAN FILE YOUR KID'S THIRDGRADE REPORT CARD AND THEY'D COLORADO COUNTY CLERK'S OFFICES TAKE IT IT DOESN'T HAVE ANYTHING TO DO WITH A CASE MR SCHWASINGER ALSO CAME UP WITH TWO NEW SORTS OF BOGUS DOCUMENTS THAT HE HAS FILED WITH GOVERNMENT OFFICES WARRANTS FOR CITIZEN'S ARREST AND SUBPOENAS TO APPEAR BEFORE HIM HE AND HIS FOLLOWERS HAVE ISSUED 600 OF THE FAKE ARREST WARRANTS AND SERVED AN UNTOLD NUMBER OF THE PHONY SUBPOENAS BOGUS ARREST WARRANTS HAVE BEEN COOKED UP FOR NEBRASKA'S GOVERNOR BEN NELSON GOV ROY ROMER OF COLORADO IOWA'S ATTORNEY GENERAL BONNIE CAMPBELL AND SEVERAL US SENATORS NOBODY HAS ACTUALLY BEEN ARRESTED AS A RESULT BUT IN THE PROCESS MR SCHWASINGER HAS BECOME A MAJOR NUISANCE TO LAWENFORCEMENT AUTHORITIES ACROSS MIDAMERICA DESPITE THE FACT THAT EXPERTS CONSIDER HIS THEORIES AND ADVICE BASED ON THEM RIDICULOUS STATE ATTORNEYS GENERAL IN IOWA OKLAHOMA AND MINNESOTA HAVE ISSUED ADVISORIES WARNING FARMERS ABOUT HIS GROUP AN IOWA JUDGE YESTERDAY ISSUED A TEMPORARY INJUNCTION PROHIBITING MR SCHWASINGER AND 16 OTHER DEFENDANTS FROM SELLING PARTICIPATIONS IN A COLORADO LAWSUIT THAT CLAIMS THE FEDERAL FARMLENDING SYSTEM IS ILLEGAL IN FORT COLLINS MR SCHWASINGER IS AWAITING TRIAL ON CHARGES THAT HE RECORDED BASELESS LIENS AGAINST THE PROPERTY OF ABOUT 30 COLORADO OFFICIALS TO UNDO THE MESS MR SCHWASINGER'S FOLLOWERS HAVE CREATED A FEDERAL JUDGE IN DENVER RECENTLY TOSSED OUT ALL THE GROUP'S CITIZEN'S ARREST WARRANTS AND SUBPOENAS FILED IN COLORADO STREAMLINED THE PROCESS FOR UNDOING BASELESS LIENS AND ORDERED THE GROUP TO STOP FILING SPURIOUS DOCUMENTS STILL VICTIMS OF MR SCHWASINGER'S SHENANIGANS HAVE IN SOME CASES FOUND IT NECESSARY TO SEEK LEGAL REDRESS TO REMOVE BLACK MARKS ON THEIR CREDIT RECORDS THE THEORY ON WHICH MR SCHWASINGER BASES HIS ACTIONS AND COUNSEL GOES LIKE THIS THE FEDERAL GOVERNMENT'S ABANDONMENT OF THE GOLD STANDARD IN 1933 MADE US CURRENCY WORTHLESS AND DROVE THE FEDERAL GOVERNMENT INTO BANKRUPTCY BY 1938 THUS EVERYTHING THE GOVERNMENT HAS DONE SINCE THEN HAVING TO DO WITH US CURRENCY INCLUDING LENDING FORECLOSURES AND THE LEVYING OF TAXES HAS BEEN ILLEGAL THAT IS A FAIRLY COMMON ARGUMENT ROLLED OUT BY TAXPROTEST ACTIVISTS BUT MR SCHWASINGER HAS ADDED A WRINKLE ALL THOSE WHO HAVE PARTICIPATED IN PERPETUATING THE ILLEGITIMATE GOVERNMENT'S ACTS SHOULD BE MADE TO PAY FOR THEIR ALLEGED FINANCIAL MISDEEDS SO FOR A 300 FILING FEE PAID TO MR SCHWASINGER AND HIS ASSOCIATES AGGRIEVED FARMERS CAN SHARE IN A HUGE SETTLEMENT FROM THE FEDERAL GOVERNMENT MR SCHWASINGER PROMISES TO WIN THE KANSAS STATE BOARD OF AGRICULTURE ESTIMATES THAT FARMERS ACROSS THE MIDWEST HAVE PAID OUT MORE THAN 1 MILLION FOR STAKES IN THE PRIZE WHICH WILL BE AVAILABLE AS SOON AS MR SCHWASINGER'S FOLLOWERS ARE APPOINTED RECEIVERS OF GOVERNMENT AGENCIES AND BANKS AND THUS GAIN ACCESS TO THEIR ASSETS UNFORTUNATELY FOR HIS CAUSE HIS RECEIVERSHIP FILINGS HAVE ROUTINELY BEEN REJECTED BY THE COURTS THEY SAID THEY HAD 6 TRILLION AVAILABLE SAYS BOYD BACON A 62YEAROLD WHEAT CORN AND MILO FARMER FROM DUNLOP KAN WHO ATTENDED A JULY 8 MEETING IN EMPORIA WITH ABOUT 30 OTHER FARMERS BUT WAS UNIMPRESSED AND DIDN'T JOIN UP ROY SCHWASINGER THE CENTER OF ALL THE TURMOIL HAS HAD A DECIDEDLY CHECKERED CAREER OVER THE YEARS THE 59YEAROLD NATIVE NEBRASKAN HAS WORKED AS A SALESMAN OF PHARMACEUTICALS AND MAGAZINE SUBSCRIPTIONS AND AS A MEATPACKER FOR THE PAST 10 YEARS FEDERAL OFFICIALS SAY HE HAS CALLED HIMSELF A CONSULTANT MR SCHWASINGER DECLINED TO BE INTERVIEWED FOR THIS STORY BUT IN OTHER FORUMS HE HAS CLAIMED TO BE AN AGENT OF CONGRESS MANDATED TO RIGHT ALL THE WRONGS OF AMERICA I WAS APPOINTED BY THE CONGRESS TO INVESTIGATE DUE TO THE MISAPPLICATION OF FUNDS HE TOLD US DISTRICT JUDGE JIM CARRIGAN AT A JUNE 25 HEARING IN DENVER THE US GOVERNMENT WAS ORDERED TO PAY EXCESSIVE DAMAGES DUE TO THE FRAUD IN THE BANKING INDUSTRY ACCORDING TO PROSECUTORS IN LUBBOCK MR SCHWASINGER CLAIMS TO CARRY A TRANSDUCER THAT LINKS HIM BY SATELLITE TO CONGRESS HIS AUTHORITY HE SAYS IN VIDEOTAPED TALKS TO POTENTIAL CONVERTS INCLUDES THE RIGHT TO KILL AS PART OF HIS CLEANUP PLAN HE SAYS THE US NAVY SECRETLY EXECUTED 170 JUDGES AND LAWYERS ON FEB 10 HE SAYS HE HAS THE SUPPORT OF THE MILITARY AND SUCH IMPORTANT OFFICIALS AS GEORGIA SEN SAM NUNN AN ASSERTION A SPOKESMAN FOR THE SENATOR STRONGLY DENIES WHATEVER HIS ACTUAL AUTHORITY MR SCHWASINGER DEFINITELY HAS THE POWER TO CAUSE TROUBLE A MAN NAMED ERNEST WIMMER SAYS THAT BASELESS LIENS WERE PLACED ON FOUR PROPERTIES HE OWNS IN THE FORT COLLINS AREA BECAUSE HE WAS AN AUCTIONEER IN A FORECLOSURE SALE OF LAND AND EQUIPMENT OWNED BY ONE OF MR SCHWASINGER'S ASSOCIATES SAYS MR WIMMER YOU'D COME HOME AND FIND ANOTHER LETTER FROM THEM MR SCHWASINGER'S FOLLOWERS YOU DIDN'T KNOW WHAT TO DO YOU DIDN'T KNOW HOW TO FIGHT IT CRAIG REEVES PRESIDENT OF FIRST NATIONAL BANK IN CLAYTON NM HAS HAD TO SPEND MORE THAN 100000 TO UNDO LIENS FILED AGAINST HIS AND THE BANK'S PROPERTY IN NEW MEXICO AND IN BOISE CITY OKLA MR REEVES HAS WON JUDGMENTS TOTALING 26 MILLION IN THE TWO STATES AGAINST SCHWASINGER FOLLOWERS BUT HOW MUCH OF THAT HE WILL EVER COLLECT IS IN DOUBT DESPITE ITS OWN LEGAL TROUBLES MR SCHWASINGER'S CRUSADE GRINDS ON THESE DAYS IN COFFEE SHOPS AND HOLIDAY INNS FROM TEXAS TO MINNESOTA SOME 3000 PEOPLE ARE SAID TO HAVE PAID THEIR 300 FILING FEES THEY ARE TOLD THAT NOT ONLY WILL THEY REAP HUGE RETURNS FROM LEGAL ACTIONS AGAINST GOVERNMENT BUT THEY WILL ALSO GET BACK THEIR FORECLOSED LAND AND LOAN PAYMENTS THE PROMISES SOUND GOOD IN PLACES LIKE TULIA A SMALL FARMING COMMUNITY IN THE TEXAS PANHANDLE WHERE THE FARM RECESSION HIT LIKE A TWISTER AND WHERE PEOPLE HAVE LONG HARBORED DEEP SUSPICIONS ABOUT GOVERNMENT SIX OF THOSE INDICTED WITH MR SCHWASINGER ARE RESPECTED MEMBERS OF THE COMMUNITY WHO HAD LOST THEIR FARMS DESPITE HIS INDICTMENT AND ARREST MR BIVENS FOR EXAMPLE DOESN'T REGRET PAYING HIS 300 TO MR SCHWASINGER HE IS VERY FORTHRIGHT THE FARMER SAYS HE'S HONEST 9309140015 930914 INTERNATIONAL BRIEF AMCOR LTD PAPER CONCERN TO ACQUIRE NORTH BROKEN HILL BUSINESSES AMCOR LTD AN AUSTRALIAN PAPER TIMBER PRODUCTS AND PACKAGING COMPANY AGREED TO ACQUIRE THE PULP AND PAPER MERCHANDISING BUSINESSES OF NORTH BROKEN HILL PEKO LTD FOR 415 MILLION AUSTRALIAN DOLLARS US2699 MILLION THE MELBOURNEBASED COMPANY SAID IT WOULD FUND THE PURCHASE THROUGH A MIXTURE OF DEBT AND INTERNAL RESOURCES AMCOR SAID NORTH BROKEN HILL WILL SELL ITS THREE PAPER MILLS AT BURNIE AND WESLEY VALE IN TASMANIA STATE AND SHOALHAVEN ON THE SOUTHERN COAST OF NEW SOUTH WALES NORTH BROKEN HILL WHICH ALSO OWNS AND OPERATES BASE METALS MINES IN AUSTRALIA WILL SELL AMCOR ITS FINE PAPER AND ENVELOPE BUSINESSES BUT RETAIN ITS FORESTRY AND EXPORT WOODCHIP OPERATIONS THE MAJORITY OF NORTH BROKEN HILL'S PULP AND PAPER BUSINESSES OPERATE UNDER THE TRADING NAME OF ASSOCIATED PULP & PAPER MILLS AMCOR SAID THE DIVISION SUPPLIES PRODUCTS FOR PRINTING SCHOOL STATIONERY COPYING COMPUTERS AND ENVELOPES AMCOR HAS AN INTEREST IN THE WHITEPAPER INDUSTRY THROUGH ITS AUSTRALIAN PAPER MANUFACTURERS DIVISION AND A 46 STAKE IN SPICERS PAPER LTD NORTH BROKEN HILL PEKO SAID THE PROCEEDS OF THE SALE ARE LIKELY TO BE USED TO ACQUIRE RESOURCE ASSETS 9309140014 930914 BUSINESS BRIEF PHILLIPS PETROLEUM CO COMPANY TO SELL ITS STAKE IN OIL FIELD OFF AUSTRALIA PHILLIPS PETROLEUM CO SAID IT ACCEPTED AN OFFER TO SELL ITS STAKE IN THE HARRIET FIELD OF AUSTRALIA TO AN AUSTRALIAN ENERGY CONCERN PHILLIPS PETROLEUM BASED IN BARTLESVILLE OKLA DIDN'T DISCLOSE TERMS OF THE TRANSACTION WITH AMPOLEX LTD BUT SAID THE DEFINITIVE SALES AGREEMENTS ARE STILL BEING NEGOTIATED IN A STATEMENT PHILLIPS PETROLEUM SAID THAT THROUGH SUBSIDIARIES IT OWNS A 25 STAKE IN THE HARRIET FIELD WHICH IS IN THE CARNARVON BASIN OFFSHORE WESTERN AUSTRALIA THAT FIELD CURRENTLY PRODUCES ABOUT 10500 BARRELS OF OIL AND 27 MILLION CUBIC FEET OF NATURAL GAS A DAY PHILLIPS PETROLEUM SAID A SPOKESMAN FOR PHILLIPS PETROLEUM SAID THAT WHILE THE SALE COVERS THE COMPANY'S ONLY PRODUCING PROPERTY WE STILL HAVE SOME ACREAGE OFFSHORE THAT WE FEEL HAS POTENTIAL SO WE STILL HAVE A PRESENCE IN AUSTRALIA 9309140013 930914 SETTLEMENTS APPEAR LIKELY IN CAR TALKS AS DEADLINE NEARS BY NEAL TEMPLIN AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL AUTOINDUSTRY LABOR TALKS IN THE US AND CANADA APPEARED HEADED TOWARD SETTLEMENTS BEFORE STRIKE DEADLINES AT MIDNIGHT TONIGHT COMPANY AND UNION OFFICIALS IN BOTH COUNTRIES INDICATED IN TORONTO THE CANADIAN AUTO WORKERS UNION WHICH HAS CARRIED OUT STRIKE THREATS THE LAST FIVE TIMES IN A ROW SOUNDED UNCHARACTERISTICALLY OPTIMISTIC ABOUT SETTLING WITH CHRYSLER CORP AND IN DEARBORN MICH THE UNITED AUTO WORKERS AND FORD MOTOR CO SEEMED TO BE STEAMING TOWARD AN UNEVENTFUL ONTIME SETTLEMENT BARGAINERS IN BOTH PLACES WERE SET TO TALK AROUND THE CLOCK LAST NIGHT THREEYEAR LABOR AGREEMENTS IN BOTH COUNTRIES EXPIRE AT MIDNIGHT TONIGHT IN THE US THE UAW HOPES TO OBTAIN AN AGREEMENT FROM FORD THAT IT CAN THEN APPLY AS AN INDUSTRYWIDE PATTERN SETTLEMENT TO GENERAL MOTORS CORP AND CHRYSLER THE CAW IS FOLLOWING A SIMILAR STRATEGY IN CANADA MONDAY AFTERNOON CAW PRESIDENT BUZZ HARGROVE REPORTED CHRYSLER'S CANADIAN UNIT HAD INDICATED THAT THEY CAN MOVE QUITE SUBSTANTIALLY IN OUR DIRECTION ON SEVERAL KEY ISSUES EARLIER MR HARGROVE HAD SAID IT WAS HARD TO BE OPTIMISTIC ABOUT AVOIDING A STRIKE A STRIKE AGAINST CHRYSLER IN CANADA WOULD QUICKLY AFFECT US OPERATIONS AS WELL A CHRYSLER CANADA SPOKESMAN SAID WE BOTH MOVED SOME AND EXPRESSED OPTIMISM ABOUT AVOIDING A STRIKE AT FORD IN THE US MANY OF THE THORNIEST ISSUES WERE UNDERSTOOD STILL TO BE UNRESOLVED INCLUDING HEALTHCARE BENEFITS HOWEVER UNION AND COMPANY OFFICIALS VOICED OPTIMISM THEY COULD REACH AN AGREEMENT WITHOUT A STRIKE THINGS ARE STILL GOING ALONG FOR BIG THREE NEGOTIATIONS AT A NORMAL PACE A UAW SPOKESMAN SAID 9309140012 930914 TEXACO TO SELL ITS PETROCHEMICAL LINES FOR 106 BILLION TO HUNTSMAN PACKER BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC SIGNED A MEMORANDUM OF UNDERSTANDING TO SELL ITS PETROCHEMICAL BUSINESS FOR 106 BILLION TO A COMPANY JOINTLY CONTROLLED BY CHEMICAL BARON JON HUNTSMAN AND AUSTRALIAN BUSINESSMAN KERRY PACKER IN AN INTERVIEW TEXACO'S CHAIRMAN AND CHIEF EXECUTIVE ALFRED DECRANE SAID THE COMPANY PLANS TO PLOW THE MONEY INTO MORE PROFITABLE OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS AROUND THE WORLD AREAS THAT PROVIDE A GREATER RETURN THAN THE CHEMICALS HAVE BEEN PROVIDING THE CHEMICAL INDUSTRY HAS BEEN MIRED IN A MULTIYEAR SLUMP BECAUSE OF EXCESS CAPACITY THAT WAS BUILT IN THE 1980S AND BECAUSE OF THE CURRENT SLUGGISH WORLD ECONOMY THAT HAS CURBED DEMAND MANY COMPANIES HAVE FOUND THAT PROFIT MARGINS HAVE BEEN WEAK OR NONEXISTENT IN PARTICULAR TEXACO'S CHEMICAL SUBSIDIARY HAD AN OPERATING LOSS OF 14 MILLION IN THE YEAR'S FIRST HALF THE SLUMP ATTRACTED MR HUNTSMAN WHO CONTROLS HUNTSMAN CHEMICAL CORP IN SALT LAKE CITY ALONG WITH OTHER CHEMICAL COMPANIES THAT FORM THE US'S LARGEST CLOSELY HELD CHEMICAL CONCERN OUR PHILOSOPHY HAS BEEN THAT IT'S ESSENTIAL FOR US TO EXPAND AND DIVERSIFY IN THE CHEMICAL BUSINESS AND THE MOST APPROPRIATE TIME TO DO THAT IS IN THE DOWN TIME OF THE CHEMICAL CYCLE MR HUNTSMAN SAID IN AN INTERVIEW AFTER BREAKING THE NEWS OF THE DEAL TO TEXACO CHEMICAL EMPLOYEES IN HOUSTON MR HUNTSMAN SAID THE CURRENT CHEMICAL SLUMP IS LASTING LONGER THAN PREVIOUS DOWN CYCLES AND THAT IT COULD GO ON FOR AN ADDITIONAL TWO OR THREE YEARS THIS KIND OF ACQUISITION IS IN A SENSE A BIT OF SPECULATION HE SAID OTHER COMPANIES ARE ALSO BETTING THAT THE CYCLE MAY HAVE HIT BOTTOM IN JUNE LONDONBASED CONGLOMERATE HANSON PLC AGREED TO BUY TROUBLED QUANTUM CHEMICAL CORP IN A STOCK SWAP VALUED AT AROUND 720 MILLION MR HUNTSMAN WOULDN'T DISCLOSE NET INCOME BUT SAID THAT THE VARIOUS CHEMICAL COMPANIES HE CONTROLS ARE EXPECTED TO POST REVENUES OF 185 BILLION THIS YEAR TEXACO'S CHEMICAL SUBSIDIARY HAD REVENUE OF 124 BILLION LAST YEAR SO IF THE ACQUISITION IS COMPLETED ON JAN 1 1994 AS PLANNED IT WOULD BOOST MR HUNTSMAN'S REVENUE ABOVE 3 BILLION ANNUALLY HE SAID IT WOULD ALSO PROVIDE HIM WITH A BROADER RANGE OF CHEMICAL PRODUCTS MR HUNTSMAN'S COMPANIES NOW OWN AND OPERATE 55 CHEMICAL PLANTS AROUND THE WORLD ALMOST ALL OF WHICH HE HAS ACQUIRED IN INDUSTRY SLUMPS HE SAID MR HUNTSMAN SAID HE WAS NEGOTIATING TO BUY ADDITIONAL PLANTS ALTHOUGH MUCH SMALLER THAN THE TEXACO ACQUISITION HE SAID HE IS MAKING THE ACQUISITION IN A 5050 JOINT VENTURE WITH MR PACKER AN AUSTRALIAN WHO OWNS CONSOLIDATED PRESS HOLDINGS AND IS MORE WELLKNOWN FOR HIS INVOLVEMENT IN THE MEDIA BUSINESS BECAUSE FINANCIALLY IT WOULD BE TOO HEAVY A BURDEN FOR ME TO CARRY ALONE THIS YEAR IN ANOTHER JOINT VENTURE THE TWO MEN ACQUIRED CHEMICAL OPERATIONS IN MELBOURNE AUSTRALIA NEWS OF THE ACQUISITION CAME AFTER THE CLOSE OF STOCK MARKET TRADING IN NEW YORK IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TEXACO FELL 75 CENTS TO 65375 IN WHITE PLAINS NY MR DECRANE TEXACO'S CHAIRMAN SAID THE COMPANY DOESN'T EXPECT TO MAKE ANY OTHER ASSET SALES OF THIS SIZE SOON HE SAID THE COMPANY'S STRONG BALANCE SHEET ENABLES TEXACO TO PUT MOST OF THE MONEY INTO OIL PROJECTS RATHER THAN CUTTING DEBT SPECIFICALLY MR DECRANE SAID PROCEEDS WILL LET TEXACO ACCELERATE SPENDING ON PROJECTS IN THE NORTH SEA US NATURAL GAS DEVELOPMENT AND ENHANCED OIL RECOVERY AS WELL ON SEVERAL PROJECTS IN ASIA WE HAVE A SIGNIFICANT NUMBER OF OPERATING OPPORTUNITIES FOR THE FUNDS THAT WOULD CREATE GREATER VALUE HE SAID TEXACO'S CHEMICAL SUBSIDIARY MAKES COMMODITY AND SPECIALTY CHEMICALS IN SIX US PLANTS AND FACILITIES IN CANADA BELGIUM THE UK BRAZIL AND COLOMBIA THE UNIT'S PRIMARY PRODUCTS INCLUDE ETHYLENE PROPYLENE ETHYLENE OXIDE AND BUTADIENE TEXACO WILL RETAIN ITS CHEMICAL OPERATIONS AT ITS EL DORADO KAN REFINERY AND AT A DELAWARE CITY FACILITY IN PORT NECHES TEXAS TEXACO IS CURRENTLY BUILDING A PLANT THAT MAKES METHYL TERTIARY BUTYL ETHER A GASOLINE ADDITIVE THAT MEETS CLEAN AIR ACT RULES IN CERTAIN CITIES THE COMPANY'S AGREEMENT WITH MR HUNTSMAN GIVES HIM A TWOYEAR OPTION TO PURCHASE EITHER ALL OR HALF OF THE PLANT 9309140011 930914 ENTERPRISE SOME FORMS OF IDENTIFICATION CAN'T BE HANDILY FAKED DEVICES THAT MEASURE PHYSICAL TRAITS CAN FILL VARIOUS SECURITY NEEDS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL BECAUSE IT FROWNS ON FREELOADERS THE UNIVERSITY OF GEORGIA REQUIRES SOME 5000 STUDENTS TO PASS AN UNUSUAL IDENTIFICATION TEST BEFORE THEY CAN USE AN ALLYOUCANEAT PLAN AT A CAMPUS CAFETERIA THEY MUST HAVE THEIR HANDS READ AT THE CAFETERIA'S ENTRANCE ON THE ATHENS GA CAMPUS A CAMERA AUTOMATICALLY COMPARES THE SHAPE OF A STUDENT'S HAND WITH AN IMAGE OF THE SAME HAND PULLED FROM THE MAGNETIC STRIP OF AN ID CARD IF THE PATTERNS MATCH THE CAFETERIA TURNSTILE CLICKS OPEN IF NOT THE WOULDBE MOOCHER EATS ELSEWHERE THE SCANNER CAN MAKE IDENTIFICATIONS BECAUSE THE GEOMETRY OF A PERSON'S HAND IS UNIQUE HANDSCANNING DEVICES ALSO ELIMINATE THE CHANCE OF HUMAN ERROR AND THE POTENTIAL FOR COUNTERFEITING INVOLVED WITH PHOTO ID CARDS THE UNIVERSITY'S HAND GEOMETRY IDENTIFICATION SYSTEM CALLED HANDKEY IS MADE BY RECOGNITION SYSTEMS INC A SMALL FIRM BASED IN CALIFORNIA'S SILICON VALLEY WHOSE SUCCESS SO FAR REFLECTS AN UNCOMMON MARKETING APPROACH FOR A STARTUP COMPANY IT DELIBERATELY SOUGHT TO BROADEN ITS MARKET KEEPING COLLEGE STUDENTS FROM PASSING MEAL CARDS TO THEIR FRIENDS WAS HARDLY THE HIGHSECURITY USE ENVISIONED BY DAVE SIDLASUKAS IN THE MID1980S WHEN HIS CAMPBELL CALIF CONCERN STARTED TO DEVELOP THE HANDSCANNING DEVICE THE COMPANY'S FIRST CUSTOMERS WERE NUCLEAR MATERIAL PROCESSING PLANTS AND NUCLEAR WEAPONS LABORATORIES WHERE ALLOWING ACCESS TO THE WRONG PERSON CARRIES A BIG SECURITY RISK BUT AFTER WE GOT INTO IT WE REALIZED THAT TO MAKE A BUSINESS YOU HAVE TO GET LOWER IN THE SECURITY PYRAMID MR SIDLAUSKAS SAYS IDENTIFYING PEOPLE IS INHERENT IN A LOT OF THINGS WE DO DAILY RATHER THAN PIGEONHOLING ITS HAND SCANNER AS A HIGHSECURITY DEVICE AIMED AT CURBING CRIMINAL BEHAVIOR THE CONCERN FOUND ADDITIONAL CLIENTS INTERESTED IN SIMPLY SPEEDING UP PERSONAL IDENTIFICATIONOR IN REDUCING LIABILITY OR EMBARRASSMENT STEMMING FROM MISTAKEN IDENTIFICATIONS THE UNIVERSITY OF GEORGIA'S DECISION TO BUY EIGHT HANDKEY SCANNERS FOR ABOUT 2150 APIECE IS AN EXAMPLE OF HOW RECOGNITION SYSTEMS PITCHED TO A BROADER CLIENTELE IT IS ALSO EVIDENCE THAT SMALL BUSINESSES OFTEN CAN PROMOTE THEIR PRODUCTS TO A WIDER AUDIENCE THAN THEY FIRST IMAGINED THE APPROACH IS BEGINNING TO PAY OFF FOR RECOGNITION SYSTEMS MR SIDLASUKAS PRESIDENT OF THE 15EMPLOYEE CLOSELY HELD FIRM SAYS IT HAS SOLD ABOUT 3100 HAND SCANNER UNITS IN VARIOUS CONFIGURATIONS HE SAYS THAT SALES IN THE FISCAL YEAR ENDED IN MARCH TOTALED ABOUT 15 MILLION AND THAT THE COMPANY IS COMFORTABLY IN THE BLACK WE'VE BEEN FUNDING OPERATIONS OUT OF PROFITS SINCE THE START HE ADDS A FORMER HEWLETTPACKARD CORP ENGINEER THE 56YEAROLD MR SIDLAUSKAS STARTED RECOGNITION SYSTEMS IN 1986 CONSULTANTS IN THE MID1980S WERE PREDICTING A BRIGHT FUTURE FOR SOCALLED BIOMETRIC DEVICES WHICH MEASURE BODY FEATURES OR TRAITS SUCH AS FINGERPRINTS HANDS VOICE AND THE EYE RETINA BUT ROSY FORECASTS OF A BILLIONDOLLAR MARKET HAVE YET TO MATERIALIZE THERE WAS A LOT OF HYPE AND A LOT OF FAILURES MR SIDLAUSKAS SAYS THE BUSINESS REALLY LOST A LOT OF CREDIBILITY BEN MILLER EDITOR AND PUBLISHER OF PERSONAL IDENTIFICATION NEWSLETTER IN ROCKVILLE MD SAYS RECOGNITION SYSTEMS IS THE ONLY COMPANY CURRENTLY MARKETING HAND SCANNER UNITS AND HAS MADE THE VAST MAJORITY OF INSTALLED BIOMETRIC UNITS AROUND THE WORLD INDEED MR MILLER COUNTS ONLY SEVEN FIRMS ALL SMALL ACTIVELY SELLING BIOMETRIC PRODUCTS BUT HE ADDS THAT THERE ARE DOZENS OF OTHER RESEARCH AND DEVELOPMENT EFFORTS UNDER WAY WORLDWIDE I HAVE HUNDREDS OF SUBSCRIBERS WHO WILL USE BIOMETRIC DEVICES IN LARGE NUMBERS WHEN THE TECHNOLOGY AND PRICE ARE RIGHT MR MILLER SAYS RECOGNITION SYSTEMS RECEIVED A BOOST WHEN THE HANDKEY SCANNER TROUNCED FIVE OTHER BIOMETRICBASED IDENTIFICATION PRODUCTS IN TESTS AT A US GOVERNMENT LABORATORY AT SANDIA NM RESULTS FROM THE 1989 AND 1991 TESTS GOT US A FAIR AMOUNT OF BUSINESS WITH THE DEPARTMENT OF ENERGY MR SIDLAUSKAS RECALLS TODAY HANDKEY USERS VARY WIDELY CALIFORNIA CRYOBANK INC A LOS ANGELES SPERM BANK SAYS IT EMPLOYS A HANDKEY TO VERIFY THE IDENTITY OF YOUNG MEN PAID TO DONATE SPERM THAT IT FREEZES FOR LATER USE IN ARTIFICIAL INSEMINATION THE SPERM BANK'S DONORS MUST MEET STRICT AGE AND PHYSICAL STANDARDS AND UNDERGO A RIGOROUS MEDICAL SCREENING WITHOUT THE SCANNER'S THOROUGH ID CHECKS THE SPERM BANK FEARS THAT ANYONE COULD COME IN AND SAY I'M JIM JONES' AND LEAVE THEIR SPERM SAYS ELIZABETH KIM THE FIRM'S DONOR MANAGER IN A TRIAL PROGRAM DESIGNED TO SPEED UP IMMIGRATION PROCESSING OF ARRIVING INTERNATIONAL PASSENGERS THE IMMIGRATION AND NATURALIZATION SERVICE THIS SUMMER INSTALLED HANDKEY SCANNERS IN THE NEW YORK AREA'S JOHN F KENNEDY AND NEWARK AIRPORTS FREQUENT TRAVELERS FROM 24 SPECIFIED COUNTRIES WHO REGISTER THEIR HAND GEOMETRY IN ADVANCE CAN USE THE SCANNERS TO SIDESTEP THE NOTORIOUSLY LENGTHY IMMIGRATION LINES AS WELL AS INTERROGATION BY AN IMMIGRATION AGENT THE HAND RECORD IS KEYED TO THE TRAVELER'S PASSPORT NUMBER SO FAR IT SEEMS TO BE WORKING OK SAYS VERNE JERVIS AN INS SPOKESMAN WE HAVEN'T UNCOVERED ANY GREAT PROBLEMS HE ADDS BUT NOTES THAT USAGE REMAINS LOW LOTUS DEVELOPMENT CORP A CAMBRIDGE MASS SOFTWARE MAKER SAYS IT REQUIRES NONEMPLOYEES TO UNDERGO HAND GEOMETRY ANALYSIS AHEAD OF TIME IF THEY WISH TO PICK UP AN EMPLOYEE'S CHILD FROM THE COMPANY'S DAYCARE CENTER THEY ARE THEN CLEARED BY HAND SCANNER IDENTIFICATION AND COLOMBIA'S HOUSE OF REPRESENTATIVES IN BOGOTA HAS INSTALLED A HANDKEY ON THE DESKS OF ALL 167 MEMBERS TO ENSURE THAT THE PERSON WHO CASTS A VOTE IS TRULY THE ELECTED REPRESENTATIVE THE BIG POTENTIAL MARKET IS IN MEDIUM TO LOW SECURITY SAYS MR SIDLAUSKAS CITING AUTOMATIC BANK TELLER CARDS PASSPORTS AND VOTER REGISTRATION JUST LOOK AT THE EVERYDAY EXPERIENCE OF PEOPLE WHERE IDENTIFICATION IS IMPORTANT AND ALL YOU NOW HAVE ARE CARDS OR A PICTURE HE CONTINUES WHEN WE GET IN THE 800 RANGE WITH A DEVICE THAT'S VIRTUALLY TECHNICALLY PERFECT YOU'RE GOING TO SEE SOME OF THESE HUGE MARKETS MATERIALIZE 9309140010 930914 TECHNOLOGY & HEALTH BORLAND TO UNVEIL LATEST SOFTWARE FOR WORKGROUPS BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SCOTTS VALLEY CALIF BORLAND INTERNATIONAL INC FOLLOWING RIVALS' FORAYS INTO THE MARKET FOR SOCALLED WORKGROUPCOMPUTING SOFTWARE IS EXPECTED TO UNVEIL TODAY A TECHNOLOGY THAT ALLOWS USERS OF ITS SOFTWARE TO WORK ON COMMON TASKS AND MORE EASILY SHARE DATA PHILIPPE KAHN BORLAND'S CHIEF EXECUTIVE OFFICER SAID THE SOFTWARE MAKER WILL BEGIN INCLUDING THE TECHNOLOGY CALLED OBJECT EXCHANGE IN NEW WORKGROUP VERSIONS OF ITS FLAGSHIP QUATTRO PRO SPREADSHEET AND ITS PARADOX DATABASE WORDPERFECT CORP OF OREM UTAH ALSO SAID IT PLANS TO INCLUDE THE WORKGROUP TECHNOLOGY IN CERTAIN VERSIONS OF ITS WORDPERFECT WORDPROCESSOR SOFTWARE WORKGROUP SOFTWARE A RELATIVELY NEW GENRE OF PERSONALCOMPUTER PROGRAMS INCLUDES TECHNOLOGIES THAT ALLOW SEVERAL USERS CONNECTED BY A NETWORK TO WORK AT A SINGLE TASK SIMULTANEOUSLY WORKERS IN AN OFFICE FOR EXAMPLE COULD UPDATE AN OFFICE CALENDAR IN THEIR INDIVIDUAL MACHINES AND THE WORKGROUP SOFTWARE WOULD MAKE THE CHANGES AUTOMATICALLY IN THE OTHER MACHINES OR PARTICIPANTS IN A PROJECT COULD AUTOMATICALLY HAVE A SPREADSHEET IN THEIR COMPUTERS UPDATED BY THE WORKGROUP SOFTWARE WHEN NEW DATA WERE TYPED INTO A CENTRAL DATABASE BORLAND RIVALS SUCH AS MICROSOFT CORP REDMOND WASH AND LOTUS DEVELOPMENT CORP CAMBRIDGE MASS HAVE ALREADY BEGUN SELLING THEIR OWN WORKGROUP SOFTWARE FOR WHAT IS EXPECTED TO GROW INTO A HUGE MARKET AMONG BUSINESS USERS AS PART OF ITS PREVIOUSLY ANNOUNCED AGREEMENT TO DEVELOP PRODUCTS THAT WORK TOGETHER WITH BORLAND'S WORDPERFECT SAID IT WILL USE BORLAND'S TECHNOLOGY WHICH WILL MAKE IT EASIER FOR USERS OF WORDPERFECT'S WORD PROCESSORS TO WORK OVER NETWORKS WITH USERS OF BORLAND SOFTWARE ADDITIONALLY BORLAND SAID NEW VERSIONS OF ITS QUATTRO PRO WILL INCLUDE SOFTWARE TO HOOK UP TO MCI MAIL THE ELECTRONICMAIL SERVICE OF MCI COMMUNICATIONS CORP USERS CAN QUICKLY BEGIN USING WORKGROUPCOMPUTING FEATURES OF THE SOFTWARE USING MCI MAIL TO EXCHANGE DATA AMONG COMPUTERS BORLAND SAID 9309140009 930914 INTERNATIONAL STAR TV VIEWS CHINA AS A BIG MARKET BUT MURDOCH MAY GET POOR RECEPTION BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG BY SELLING DOWN HIS HONG KONG NEWSPAPER HOLDINGS SOON AFTER MAKING A BIG INVESTMENT IN STAR TV RUPERT MURDOCH IS STAKING MUCH OF HIS ASIA STRATEGY ON CHINA POTENTIALLY THE SATELLITE BROADCASTER'S BIGGEST MARKET JUDGING BY THE RUMBLINGS FROM BEIJING IT SEEMS FAR FROM CERTAIN THAT HIS ENTHUSIASM FOR THE NATION WILL BE RECIPROCATED FOR CHINA A COUNTRY WHICH PRACTICES STRICT MEDIA CONTROL STAR'S UNCENSORED PROGRAMS BEAMING IN FROM SPACE POSE A FORMIDABLE CHALLENGE THE ISSUE SIMMERED IN THE BACKGROUND WHILE THE HONG KONG BROADCASTER WAS CONTROLLED BY LI KASHING A TYCOON WHOM CHINA CONSIDERS A PATRIOT BUT STAR'S TAKEOVER IN LATE JULY BY MR MURDOCH A WESTERN MEDIA BARON WHOSE NEWSPAPERS HAVE AT TIMES BEEN TOUGH ON TOTALITARIAN GOVERNMENT HAS ALARMED MANY CHINESE OFFICIALS THAT CONCERN HAS REMAINED UNPUBLICIZED SO FAR EVIDENTLY BECAUSE CHINA HASN'T DECIDED WHAT IF ANY ACTION TO TAKE SPEAKING ANONYMOUSLY CHINESE OFFICIALS AND OUTSIDERS WITH HIGHLEVEL ACCESS TO BEIJING SAY THE STAR TAKEOVER IS A SUBJECT OF HEATED INTERNAL DEBATE AMONG SEVERAL MINISTRIES INVOLVED WITH SATELLITE BROADCASTING AND HONG KONG AFFAIRS THAT DEBATE INTENSIFIED AFTER MR MURDOCH SAID IN A SPEECH TWO WEEKS AGO THAT THE ELECTRONIC AGE COULD BRING THE CURTAIN DOWN ON TOTALITARIAN RULE AMONG OTHERS THOSE CHINESE OFFICIALS WHO OVERSEE HONG KONG'S 1997 RETURN TO CHINA'S CONTROL SEEM WORRIED THAT STAR MIGHT BECOME A SOURCE OF SOCALLED SUBVERSIVE PROPAGANDA AGAINST CHINA ACCORDING TO A HONG KONG CIVIC LEADER WHO WAS IN BEIJING A WEEK AGO THE ISSUE CAME UP DURING A PRIVATE CONVERSATION WITH SENIOR OFFICIALS HE DESCRIBED THE OFFICIALS AS LIVID OVER SYDNEYBASED NEWS CORP'S TAKEOVER OF STAR ONE OF THEM TOLD THE CIVIC LEADER THAT MR MURDOCH HAS TO BE ACTING WITH THE TACIT SUPPORT OF THE US GOVERNMENT A HONG KONG TELEVISION EXECUTIVE SAYS SIMILAR SENTIMENTS HAVE BEEN EXPRESSED TO HIM BY CHINESE OFFICIALS INVOLVED WITH SETTING BROADCASTING POLICY IN NEW YORK A NEWS CORP OFFICIAL SAYS THE COMPANY ISN'T AWARE THAT ITS INVESTMENT IN STAR HAS UPSET AUTHORITIES IN BEIJING HE EMPHASIZES THAT MR MURDOCH HAS BEEN DILIGENT IN HIS COURTING OF THE CHINESE AUTHORITIES TROUBLE IN CHINA COULD PROVE A SERIOUS BLOW TO MR MURDOCH'S AMBITIONS STAR IN WHICH NEWS CORP HAS BOUGHT 636 FOR US525 MILLION CURRENTLY DEVOTES ONE OF ITS FIVE CHANNELS TO CHINESELANGUAGE PROGRAMMING SO FAR CHINA HAS MADE ONLY HALFHEARTED ATTEMPTS TO REGULATE VIEWER ACCESS TO SUCH PROGRAMMING MANY PEOPLE DOUBT THAT ANY CONTROLS COULD BE VERY EFFECTIVE BUT BESIDES BEING A BIG POTENTIAL MARKET CHINA ALSO IS A SUBSTANTIAL INVESTOR IN SATELLITES ON WHICH STAR IS LEASING OR HAS RESERVED TRANSMISSION CHANNELS KNOWN AS TRANSPONDERS AT LEAST ONE SUCH ARRANGEMENT WHICH EXISTED AS AN AGREEMENT IN PRINCIPLE PRIOR TO THE STAR TAKEOVER NOW SEEMS IN DOUBT THIS ARRANGEMENT CONCERNS A SATELLITE THAT IS SCHEDULED FOR LAUNCH IN LATE 1994 BY HONG KONGBASED ASIA PACIFIC SATELLITE CO WHICH INCLUDES UNITS OF CHINA'S DEFENSE AND AERONAUTICS MINISTRIES AS SHAREHOLDERS UNCERTAINTY ALREADY HANGS OVER THIS PROJECT WHICH COULD BE A TARGET OF RECENTLY ANNOUNCED US SANCTIONS PROHIBITING SALE OF SATELLITE TECHNOLOGY TO CHINA AN OFFICIAL AT ONE OF THE MINISTRIES INVOLVED SAYS STAR'S TAKEOVER BY MR MURDOCH HAS RAISED FURTHER DOUBT AS TO WHETHER THE TENTATIVE AGREEMENT WOULD HOLD IT'S FAR FROM CLEAR WHETHER MR MURDOCH WISHES TO PROCEED WITH NEGOTIATIONS WITH US AND WHETHER WE WOULD LIKE TO DO BUSINESS WITH MR MURDOCH SAYS THE OFFICIAL WHO DECLINES TO BE IDENTIFIED 9309140008 930914 UAL'S UNITED AIR TO SELL 15 KITCHENS TO DIAL'S DOBBS UNIT CHICAGO UAL CORP'S UNITED AIRLINES UNIT SAID IT REACHED AN AGREEMENT TO SELL 15 OF ITS US FLIGHT KITCHENS TO DOBBS INTERNATIONAL SERVICES INC FOR 1194 MILLION IN CASH AND A SEVENYEAR CATERING CONTRACT UNITED WHICH IS NEGOTIATING WITH ITS LABOR UNIONS FOR BROAD CONCESSIONS IN RETURN FOR EQUITY IN UAL HAS BEEN TRYING TO SELL ITS KITCHENS SINCE LAST FEBRUARY MOST BIG US AIRLINES ALREADY HAVE SOLD THEIR CATERING OPERATIONS UNITED SAID IT ESTIMATES THE SALE TO DOBBS A UNIT OF DIAL CORP WOULD SAVE THE AIRLINE NEARLY 400 MILLION OVER SEVEN YEARS UNITED ALSO SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SELL ITS CATERING ASSETS AT NEW YORK'S JOHN F KENNEDY AIRPORT TO CATERAIR INTERNATIONAL CORP ANOTHER CATERING OPERATOR UNITED SAID IT WILL RETAIN KITCHENS IN MIAMI AND TOKYO UNITED SAID THE SALE TO DOBBS IS SUBJECT TO CERTAIN CONDITIONS AND CAN BE TERMINATED BEFORE NOV 13 IF THE AIRLINE'S EMPLOYEES AGREE TO EASE THE CARRIER'S COSTS THE TWOMONTH WAITING PERIOD REFLECTS THAT THE DOOR REMAINS OPEN SHOULD THE UNION WANT TO ADDRESS COST COMPETITIVENESS IN RELATION TO THE KITCHENS A UNITED SPOKESMAN SAID THE KITCHENS TO BE SOLD EMPLOY ABOUT 5200 UNITED EMPLOYEES MOST OF THEM MEMBERS OF THE MACHINISTS UNION MACHINISTS UNION OFFICIALS WEREN'T AVAILABLE FOR COMMENT JOHN W TEETS CHAIRMAN AND CHIEF EXECUTIVE OF DIAL SAID HOWEVER THAT HE EXPECTED UNITED'S SALE TO DOBBS TO BE COMPLETED IN NOVEMBER UNITED IS DOING WHAT OTHER MAJOR US AIRLINES HAVE DONE GETTING OUT OF THE CATERING BUSINESS MR TEETS SAID WHILE DOBBS EMPLOYEES ARE UNIONIZED THEIR KITCHENS SERVE SEVERAL AIRLINES AND THUS ARE MORE COSTEFFICIENT HE SAID 9309140007 930914 CORPORATE FOCUS NIKE'S MANAGEMENT RACES TO REMAKE COMPANY'S IMAGE A NEW AD CAMPAIGN FEATURES UNKNOWN ATHLETES AND OFFBEAT SPORTS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL HOOD RIVER ORE NIKE INC'S LATEST ROUND OF SHOE COMMERCIALS THIS FALL ADDS SOME UNUSUAL NEW TALENT TO THE COMPANY'S FABLED STABLE OF SPORTSSTAR PITCHMEN MY NAME IS FLETCHER AND I WORK AS LITTLE AS POSSIBLE SAYS A YOUNG WIND SURFER TOOLING ALONG HERE IN A WHEEZY VAN THAT MICHAEL JORDAN WOULDN'T USE TO HAUL HIS OLD SNEAKERS ANOTHER LOCAL ATHLETE DISCUSSES HIS PREFERENCE FOR SLEEPING OUT AMONG THE COWS IN A MEADOW IN A THIRD AD AN ADMIRING COLLEAGUE DESCRIBES WIND SURFER ANTON POGUE AS KIND OF LARGER THAN LIFE IN A WAY MR POGUE A 25YEAROLD COLLEGE DROPOUT DOES HAVE A CLAIM TO SPORTING FAME HE WON AN AMATEUR SNOWBOARDING CHAMPIONSHIP TWO YEARS AGO HIS SPORTS EARNINGS TO DATE ABOUT 800 WHILE THE GAP MAY BE VAST BETWEEN HOOD RIVER'S LAIDBACK ATHLETES AND THE MULTIMILLIONAIRE JOCKS NIKE TRADITIONALLY EMPLOYS THE COMPANY IS PLACING A HIGHSTAKES BET ON MR POGUE AND HIS PALS TO HELP IT TAKE OVER THE HOTTEST SECTOR OF THE SHOE BUSINESS THESE DAYSOUTDOOR FOOTWEAR NIKE'S MAIN PROBLEM IS STANDING OUT FROM ALL THE OTHER SHOE COMPANIES PUSHING OUTDOOR WEAR TOWARD THAT END NIKE PLANS TO RUN ITS HOOD RIVER ADS ON BOTH PRIMETIME TELEVISION AND MTV OUTDOOR SPORTS EXPLAINS ANDREW MOONEY NIKE'S VICE PRESIDENT OF MARKETING ISN'T AN AREA DRIVEN BY SPORTS ICONS WE HAVE TO SHOW THAT WE GET IT AND I THINK THOSE ADS DO THAT THEY'D BETTER AFTER A SIXYEAR HOT STREAK THAT MADE NIKE THE WORLD'S BIGGEST SHOE COMPANY NEARLY QUADRUPLING ANNUAL SALES TO 39 BILLION AND PROFITS TO 365 MILLION SNEAKERDOM'S BIGFOOT HAS STUMBLED SALES OF NIKE'S BASKETBALL SHOES ITS MAJOR LINE HAVE PLATEAUED AT AROUND 600 MILLION ANNUALLY RUNNING SHOES AND TENNIS SNEAKERS HAVE ALSO HIT A WALL THE COMPANY'S STOCK IS DOWN 43 FROM A HIGH OF 9025 A SHARE LAST NOVEMBER AND PHILIP KNIGHT NIKE'S FOUNDER AND CHAIRMAN PREDICTS NO MORE THAN SINGLEDIGIT PROFIT GROWTH FOR THE REST OF FISCAL 1994 NIKE STOCK CLOSED AT 51375 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ALL THAT BAD NEWS HAS NIKE'S MANAGEMENT SCRAMBLING TO REMAKE THE COMPANY'S IMAGE AGAIN MANY RETAILING EXPERTS DOUBT THAT NIKE CAN REBOUND BY PUSHING OUTDOOR FOOTWEAR ALONE BUT THE COMPANY HAS OTHER STRATEGIES AS WELL NIKE IS ALREADY AGGRESSIVELY PUSHING INTO THE RETAILING SIDE OF THE BUSINESS IN THE NEXT YEAR IT EXPECTS TO OPEN AS MANY AS 80 NEW CONCEPT SHOPS BOUTIQUES WITHIN LARGER RETAILING OUTLETS THAT ARE DEVOTED SOLELY TO NIKE'S PRODUCTS NIKE OFFICIALS SAY THEY WOULD ALSO LIKE TO SEE THEIR UPSCALE COLEHAAN SHOE UNIT GO TOETOTOE WITH TIMBERLAND INC'S SUCCESSFUL OUTDOORSTYLE BOOTS MR KNIGHT TALKS OF TRANSFORMING STAID COLEHAAN WHICH HAD 100 MILLION IN SALES WHEN NIKE BOUGHT IT FOUR YEARS AGO INTO A 1 BILLION POWERHOUSE AND HE ADDS WE CAN SEE OURSELVES BROADENING OUT BEYOND SHOES AND CLOTHES INDEED NIKE'S CHAIRMAN HAS SHUTTLED BACK AND FORTH BETWEEN THE COMPANY'S HEADQUARTERS IN BEAVERTON ORE AND BEVERLY HILLS CALIF A HALFDOZEN TIMES IN THE LAST YEAR TO CONFER WITH MICHAEL OVITZ THE SIMILARLY EXPANSIONMINDED CHAIRMAN OF CREATIVE ARTISTS AGENCY MR KNIGHT REJECTS TALK THAT NIKE WOULD TEAM UP WITH THE HOLLYWOOD TALENT AGENCY IN ANY KIND OF TALENTMANAGEMENT VENTURE BUT THE TWO HAVE DISCUSSED HOW TO CAPITALIZE ON INTERACTIVE TELEVISION AND CABLE'S VASTLY EXPANDED CHANNEL RANGE BY STAGING EVENTS CLEARLY OVER THE NEXT FIVE YEARS THERE WILL BE LOTS MORE EVENTS ON THOSE 500 CHANNELS MR KNIGHT SAYS WE COULD CREATE EVENTS YOUR IMAGINATION COULD RUN WILD AND IT MAKES PERFECT CORPORATE SENSE THEN THERE IS THE COMPANY'S DABBLING IN THE SPORTSAGENT BUSINESS SO FAR ONLY FOUR YOUNG PROFESSIONAL ATHLETES HAVE AGREED TO LET THE COMPANY TAKE OVER TOTAL MANAGEMENT OF THEIR CAREERS RICK MIRER OF FOOTBALL'S SEATTLE SEAHAWKS AND DEION SANDERS OF THE ATLANTA FALCONS AND BASEBALL'S BRAVES AND BASKETBALL PLAYERS ALONZO MOURNING OF THE CHARLOTTE HORNETS AND HAROLD MINER OF THE MIAMI HEAT BUT MR KNIGHT CLEARLY RELISHES THE ROLE IT GIVES US CONTROL OF OUR PLAYERS AND HOW MUCH WE HAVE TO PAY HE SAYS OTHERS SAY NIKE'S RECENT EXPANSIONIST VENTURES SIMPLY REFLECT MR KNIGHT'S DESIRE FOR CONTROLPERIOD PHIL KNIGHT'S VISION HAS BEEN TO VERTICALLY INTEGRATE HIS BUSINESS FROM OWNING ATHLETES TO MANAGING THEM TO PUTTING THEIR SHOES ON SAYS WILLIAM KUSSELL A MARKETING EXECUTIVE WITH REEBOK INTERNATIONAL LTD NIKE'S BIGGEST COMPETITOR MR KNIGHT'S INFLUENCE AND THE TIDE OF NIKE ENDORSEMENT MONEY HAVE GROWN SO GREAT THAT SPORTS ILLUSTRATED RECENTLY NAMED NIKE THE MOST POWERFUL FORCE IN SPORTS WHATEVER HIS MOTIVATION MR KNIGHT HAS MADE SOME SAVVY MOVES AND LOTS OF MONEY BY MAKING OVER NIKE'S IMAGE IN THE PAST AFTER STARTING OUT IN THE 1960S PEDDLING KNOCKOFFS OF GERMAN RUNNING SHOES OUT OF HIS CAR TRUNK DURING HIGHSCHOOL TRACK MEETS MR KNIGHT CAUGHT THE JOGGING CRAZE OF THE 1970S AND THEN THE AEROBICS BOOM OF THE 1980S WITH EACH FAD NIKE'S GROWTH SPURTED BY LAST YEAR WITH MR JORDAN AND HIS NIKE SNEAKERS ARGUABLY THE WORLD'S BESTKNOWN SPORTS COMBINATION THE COMPANY HAD BECOME THE WORLD'S BIGGEST SHOE PURVEYOR BUT NIKE OFFICIALS SAY THEY BEGAN TO SENSE THAT THINGS HAD GOTTEN OFF TRACK LAST WINTER A MARCH GATHERING OF SALESPEOPLE GRUMBLED ABOUT THE SLOW PACE OF BACKTOSCHOOL ORDERS ESPECIALLY BASKETBALL SNEAKERS NIKE WRITES MOST OF ITS FOOTWEAR ORDERS SIX MONTHS IN ADVANCE AND IT DIDN'T TAKE LONG TO SEE THAT THIS YEAR'S HOLIDAY SALES WOULD BE WAY BEHIND LAST YEAR'S BLOWOUT EVEN THOUGH OUTDOOR SHOES FEATURING THE SOCALLED GRUNGE LOOK WERE SELLING VERY WELL WE HAD AN AWFUL LOT OF PRODUCT OUT THERE AND THINGS JUST WEREN'T MOVING SAYS CLARE HAMILL GENERAL MANAGER OF NIKE'S FOOTWEAR DIVISION IT WASN'T UNTIL MIDWAY THROUGH THE SPRING THAT NIKE WOKE UP MS HAMILL SAYS EXPLAINING SUDDENLY WE WERE HIRING MORE GRUNGY FUNKY DESIGNER TYPES AND PEOPLE MORE IN SYNC WITH THE OUTDOORS NIKE ALSO REVAMPED ITS 1993 HOLIDAY CATALOG ADDING NEARLY A DOZEN NEW BLACKSHOE SNEAKERS AND OUTDOOR BOOTS LAST YEAR'S CATALOG SAYS MS HAMILL HAD MAYBE ONE OR TWO NIKE'S NEW SHOE LINE INCLUDES MODELS LIKE THE VULGARIAN A BLACK HIKING BOOT WITH DOC MARTEN INSPIRATION SAYS MS HAMILL NIKE WILL EVEN OUTFIT MR JORDAN IN A NEW BLACK AND BROWN SHOE LAST YEAR NIKE'S OUTDOOR LINES SOLD 123 MILLION OF OUTDOOR FOOTWEAR INCLUDING ABOUT 25 MILLION OF ATHLETIC SANDALS MODELED AFTER DECKERS CORP'S HOT TEVA SPORTS SANDAL WHILE OUTDOOR SALES WERE JUST A FRACTION OF THE COMPANY'S OVERALL US SALES OF 2 BILLION THE LINE RANG UP ALMOST 100 GROWTH WHILE NIKE'S OTHER SNEAKER LINES BARELY REGISTERED SINGLEDIGIT INCREASES MR KNIGHT PREDICTS SALES OF NIKE'S OUTDOOR SHOES WILL BE AS BIG AS BASKETBALL SNEAKERS IN ANOTHER COUPLE OF YEARS BUT RETAILING EXPERTS LIKE DAVID MORGAN PRESIDENT OF TARGET MANAGEMENT INC A WILTON CONN MARKETING FIRM SAY THAT EVEN IF NIKE DOES LATCH ON TO THE OUTDOOR CROWD THEY WON'T SELL AS MANY SHOES AS BEFORE ACCORDING TO INDUSTRY FIGURES THE AVERAGE MALE TEENAGER OWNS A DOZEN PAIRS OF SHOES INCLUDING FOUR OR FIVE PAIRS OF SNEAKERS MY OWN FEELING MR MORGAN SAYS IS THAT THE OUTDOOR SHOE WON'T GENERATE ANYWHERE NEAR THE MULTIPLE SALES THE BASKETBALL SHOE DOES MR POGUE THE SNOWBOARDER FITS THAT PROFILE HE SAYS HE DIDN'T OWN NIKES UNTIL THE COMPANY'S FILM CREW GAVE HIM A PAIR FOR LETTING THEM FILM HIM AND HIS WINDSURFING PALS NIKE'S HIKING BOOTS ARE NICE SAYS MR POGUE ALTHOUGH HE ADMITS THAT HE PREFERS HIS BEATUP TEVA SANDALS HE ADDS I GUESS I JUST DON'T GO AROUND LOOKING AT SHOES AND STUFF LIKE THAT 9309140006 930914 HOST OF CHARACTERS PRECIOUS MOMENTS IS BRILLIANT AT ANSWERING ITS COLLECTORS' PRAYERS THE TEARDROPEYED CHILDREN ON CARDS STATUES CHAPEL INSPIRE FANS AND BIG SALES PAT BOONE COMPOSES A BALLAD BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL CARTHAGE MO AS REMARKABLE AS ANYTHING ABOUT THE BUSINESS CALLED PRECIOUS MOMENTS ASIDE FROM THE FACT IT GENERATES RETAIL SALES OF MORE THAN 500 MILLION A YEAR IS THE STORY OF HOW SAM BUTCHER CAME TO BUILD THE PRECIOUS MOMENTS CHAPEL HERE IN THE LAZY HILLS OF SOUTHWEST MISSOURI MR BUTCHER IS A 54YEAROLD ARTIST AND BORNAGAIN CHRISTIAN WHO HAS MADE A FORTUNE IN RECENT YEARS BY LICENSING HIS PRECIOUS MOMENTS INSPIRATIONAL DRAWINGS WHICH FEATURE CHILDREN WITH TEARDROPSHAPED EYES FOR EVERYTHING FROM PORCELAIN BISQUE FIGURINES TO PICTURE FRAMES IN THE EARLY 1980S ON A TRIP TO ITALY HE BEHELD THE SISTINE CHAPEL FOR THE FIRST TIME AND WAS SO MOVED THAT HE VOWED TO BUILD A SIMILAR CHAPEL HIMSELF IN PLACE OF MICHELANGELO'S MURALS HE WOULD DECORATE HIS WITH PRECIOUS MOMENTS CHARACTERS MR BUTCHER LATER FLEW TO ARIZONA ON BUSINESS WHERE HE DECIDED TO RENT A CAR AND EMBARK ON A SPIRITUAL JOURNEY TO FIND A CHAPEL SITE I PRAYED LORD I DON'T WANT TO LEAVE THE HIGHWAY EXCEPT TO EAT SLEEP AND GET GAS UNTIL I AM WHERE YOU WANT ME TO BE' HE SAYS ABOUT THREE O'CLOCK ONE MORNING HE WAS ROLLING THROUGH THESE PEACEFUL PARTS ON THE EDGE OF THE OZARKS WHEN HE SUDDENLY WAS OVERWHELMED WITH EMOTION I HAD THE STRONGEST FEELING HE SAYS I KNEW THIS WAS WHERE I SHOULD BE THUS CARTHAGE BECAME HOME TO THE PRECIOUS MOMENTS CHAPEL A SOARING LAVISHLY DECORATED PRERENAISSANCESTYLE STRUCTURE THE CEILING MURAL ALONE HAS 75 TEARDROPEYED ANGELS ON A BACKGROUND OF FLUFFY CLOUDS WHICH MR BUTCHER PAINTED FROM SCAFFOLDING LYING ON HIS BACK LAST YEAR THE ADMISSIONFREE CHAPEL ATTRACTED MORE THAN 500000 VISITORS THE CHAPEL IS THE SPIRITUAL HEART OF A MOST UNUSUAL BUSINESS STORY IT IS THE STORY OF PEOPLE SUCH AS CHERYL AND TOM BRIGGS OF SPRINGFIELD MO SHE'S A NURSE HE'S A NEUROSURGEON WHO BUILT AN ENTIRE ROOM ON THE FRONT OF THEIR NEW HOUSE REPLETE WITH STAINED GLASS WINDOWS FOR HER PRECIOUS MOMENTS COLLECTION OF PLATES BELLS THIMBLES ORNAMENTS CRYSTAL PEWTER BOOKS AND A COMPLETE SET OF FIGURINES RIGHT NOW I STILL HAVE PLENTY OF ROOM TO PUSH THEM TOGETHER AND ADD QUITE A BIT MORE MRS BRIGGS SAYS IT IS THE STORY OF ENESCO CORP A UNIT OF STANHOME INC WHICH INTRODUCED PRECIOUS MOMENTS FIGURINES IN 1978 AFTER ITS PRESIDENT SAW MR BUTCHER'S TEARDROPSTYLE ARTWORK ON A LINE OF RELIGIOUS GREETING CARDS WITHIN A YEAR ENESCO WAS GETTING SOME 1500 FAN LETTERS A WEEK IT IS ALSO THE STORY OF SAM BUTCHER A GENTLE MAN WITH A GENUINE TWINKLE IN HIS BLUE EYES WHOSE FAVORITE READING IS THE BIBLE HE DRESSES RATHER SHABBILY EATS AT MCDONALD'S AND LONG JOHN SILVER'S AND SLEEPS WHEN HE IS IN CARTHAGE ON AN OLD COUCH IN THE GARAGE OF HIS SHOWCASE HOME BECAUSE THAT IS WHERE HE PAINTS HE BUILT THE HOUSE AFTER HIS DIVORCE A FEW YEARS BACK BUT DOESN'T USE IT ASKED WHAT HE'S WORTH HE ANSWERS WELL THEY TELL ME THAT I'M PROBABLY WORTH 50 MILLION OR SOMETHING LIKE THAT NOW BUT ADDS THEY ALSO TELL HIM THAT BECAUSE THE MONEY IS INVESTED IT GROWS THE ROOTS AND SUCCESS OF PRECIOUS MOMENTS COME FROM WHAT MIGHT BE CALLED THE COLLECTOR SECTOR OF THE ECONOMY THOUGH THE COLLECTIBLES INDUSTRY IS HARD TO DEFINE MUCH LESS QUANTIFY PRECIOUS MOMENTS IS AN INDUSTRY GIANT AS SUCH THINGS GO THE FIGURINES ARE THE BIGGEST COLLECTIBLE OF THEIR SORT FAR AHEAD OF SUCH WELLKNOWN AND MORE PRICEY NAMES AS MI HUMMEL ENESCO DOESN'T BREAK OUT ITS REVENUES BUT ANALYSTS ESTIMATE REVENUE FROM THE FIGURINES AT AROUND 175 MILLION A YEAR PRECIOUS MOMENTS TODAY INVOLVES A HOST OF PRODUCTS AND LICENSES WITH LICENSING HANDLED BY PRECIOUS MOMENTS INC A BUTCHER FAMILY CONCERN ONE PRECIOUS MOMENTS INSIDER SAYS ALL PRECIOUS MOMENTS PRODUCTS COMBINED HAVE RETAIL SALES OF ABOUT HALF A BILLION A YEAR ENESCO REMAINS THE BIGGEST LICENSEE AND A NEW ENESCO FIGURINE IS STILL MAJOR NEWS WE SELL IT BEFORE IT EVEN COMES IN THE DOOR SAYS ROY ELWELL OWNER OF THE REEF HALLMARK SHOP IN PALM SPRINGS FLA THE PIECES WHICH ARE SOLD IN GIFT SHOPS FOR AN AVERAGE OF 30 TO 35 ARE MADE TO MR BUTCHER'S DESIGN IN ASIA WHERE THEY ARE HANDPAINTED IN PALE PASTEL COLORS PUNCTUATED BY THE RIVETING BLACK OF THE TEARDROP EYES A PIECE TAKES SEVEN TO 10 DAYS OF WORK AND ARTISTS GET UP TO THREE YEARS' TRAINING IN EYES SAYS ENESCO SPOKESWOMAN PATRICE CAMPBELL SHAW IN ONE TYPICAL FIGURINE A TEARDROPEYED BOY SITS ON A BENCH UNAWARE THAT A TEARDROPEYED PUPPY SITTING NEXT TO HIM IS LICKING HIS HEARTSHAPED LOLLIPOP THE CAPTION ON THE BASE OF THE STATUETTE READS LOVING IS SHARING IN ANOTHER A LITTLE GIRL SITS IN A BUBBLE BATH HOLDING A BIBLE HE CLEANSED MY SOUL IT READS THE FIGURINE THAT STARTED IT ALL IS LOVE ONE ANOTHER WHICH SHOWS A BOY AND GIRL SITTING ON A STUMP HE IN OVERALLS SHE IN A GINGHAM DRESS ENESCO'S PRESIDENT EUGENE FREEDMAN HAD IT SCULPTED IN 1977 TO PERSUADE A SKEPTICAL MR BUTCHER AND HIS THENBUSINESS PARTNER BILL BIEL THAT ART THEY WERE USING ON GREETING CARDS WOULD TRANSLATE INTO FIGURINES WHEN HE UNWRAPPED THE FIRST STATUETTE MR FREEDMAN SAYS SAM FELL TO HIS KNEES AND JUST CRADLED THE FIGURINE IT WAS LIKE A BABY WAS BORN TO HIM MESSRS BUTCHER AND BIEL WHO COINED THE NAME PRECIOUS MOMENTS WHEN THEY STARTED THEIR CARD LINE IN 1975 SPLIT UP IN 1983 THERE NOW ARE NEARLY 900 PIECES IN ENESCO'S PRECIOUS MOMENTS COLLECTION WITH BETWEEN 500 AND 600 IN ACTIVE PRODUCTION NEW ONES ARE ADDED EACH YEAR PRECIOUS MOMENTS SPEAKS TO PEOPLE IN A VERY PERSONAL WAY SAYS MR BUTCHER'S ELDEST SON JOHN WHO HEADS PRECIOUS MOMENTS INC WHICH IS BASED IN THE CHICAGO SUBURB OF ST CHARLES ILL NOT FAR FROM ENESCO IN SUBURBAN ELK GROVE VILLAGE THE INITIAL ATTRACTION IS THE ADORABLE ART WORK BUT THE REAL HOOK IS THE SENTIMENT ON THE BOTTOM OF THE FIGURINE ENESCO SAYS MORE THAN 500000 PEOPLE NOW BELONG TO PRECIOUS MOMENTS COLLECTORS CLUBS A READY BASE FOR THE ENTIRE RANGE OF PRECIOUS MOMENTS MERCHANDISING THOMAS NELSON PUBLISHERS INC HAS SOLD OVER 2 MILLION COPIES OF ITS PRECIOUS MOMENTS CHILDREN'S BIBLE SINCE IT WAS INTRODUCED IN 1985 HALLMARK CARDS INC HAS ABOUT 120 DIFFERENT PRECIOUS MOMENTS GREETING CARDS ROUGHLY THE SAME NUMBER AS ITS PEANUTS AND GARFIELD LINES PLUS OTHER PRODUCTS RANGING FROM PUZZLES TO PARTY GOODS THERE EVEN ARE COTTAGE INDUSTRIES SUCH AS PRECIOUS INSIGHTS A BIMONTHLY MAGAZINE THAT COLLECTOR SHERYL WILLIAMS PUBLISHES FROM HER HOME IN PILLAGER MINN MS WILLIAMS CLAIMS AN INTERNATIONAL READERSHIP OF 10000 INDEED FOR MANY COLLECTORS PRECIOUS MOMENTS IS ALMOST A STYLE OF LIFE IN JULY ABOUT 830 OF THEM PAID 400 AND UP TO JOIN MR BUTCHER MR FREEDMAN AND SINGER PAT BOONE NATIONAL SPOKESMAN FOR THE COLLECTORS CLUBS ON A FOURNIGHT BAHAMAS CRUISE TO MARK THE 15TH ANNIVERSARY OF PRECIOUS MOMENTS FIGURINES MR BOONE WORE WHITE BUCKS AND PERFORMED A NEW BALLAD ENTITLED PRECIOUS MOMENTS WHICH IS AVAILABLE ON CASSETTE TAPE THE CRUISE WAS FOLLOWED BY A TWODAY CONVENTION IN ORLANDO WHICH ATTRACTED MORE THAN 2000 PEOPLE MANY LADEN WITH FIGURINES TO SWAP OR SELL THEN THERE IS THE HOME FRONT I THINK YOU KIND OF HAVE TO HAVE THE SUPPORT OF YOUR HUSBAND SAYS COLLECTOR JEANNE CHIAPPI A PHONECOMPANY EMPLOYEE IN CINCINNATI WHO ESTIMATES THAT SINCE SHE BEGAN COLLECTING IN 1979 SHE HAS SPENT UPWARDS TO 50000 ON PRECIOUS MOMENTS FIGURINES NOT TO MENTION ORNAMENTS PLATES DOLLS NEEDLEPOINT BUTTONS AND ABOUT 25 SCRAPBOOKS OF GREETING CARDS WRAPPING PAPER AND SUCH SHE SAYS SHE HAS 10 OR 12 REAL CLOSE PRECIOUS PEN PALS OTHER COLLECTORS DOWN FROM A PEAK OF ABOUT 25 MRS CHIAPPI SAYS HER HUSBAND MIKE WHO IS A TRUCK DRIVER HAS BEEN WONDERFUL ABOUT HER PURSUIT WITHOUT HIS SUPPORT SOME MIGHT SAY YOU REALLY ARE CARRYING THIS TO AN EXTREME MRS CHIAPPI SAYS AND I CAN UNDERSTAND THAT OF COURSE EXTREMES ARE RELATIVE THE ROOM THAT CHERYL BRIGGS AND HER NEUROSURGEONHUSBAND TOM BUILT FOR HER MAMMOTH PRECIOUS MOMENTS COLLECTION MEASURES ROUGHLY 15 BY 22 FEET IT HAS TWO GOTHICSTYLE STAINEDGLASS WINDOWS FACING THE STREET WITH AN OCTAGONAL STAINEDGLASS WINDOW BETWEEN THEM EACH REPLICATING A FAVORITE PRECIOUS MOMENTS FIGURINE MRS BRIGGS'S FIGURINES SHE HAS OVER 1000 ARE DISPLAYED IN CHERRY CABINETS WITH MIRRORED BACKS GLASS FRONTS AND LIGHTING ON THE FLOOR IS A RUG THAT MRS BRIGGS COMMISSIONED WITH TWO PRECIOUS MOMENTS FIGURES WOVEN INTO IT ON THE WALL IS A PRECIOUS MOMENTS AFGHAN THAT SHE MADE HERSELF MRS BRIGGS SAYS SHE STARTED COLLECTING SERIOUSLY IN 1986 ADDING THAT HER EFFORTS GOT A BOOST THE FOLLOWING YEAR WHEN SHE MARRIED GOING FROM A NURSE'S SALARY TO A PHYSICIAN'S SALARY MAKES A BIG DIFFERENCE SHE SAYS SHE WAS INITIALLY ATTRACTED TO THE FIGURINES BECAUSE THEY'RE CUTE AND HAVE A SCRIPTURE MESSAGE SHE SAYS BUT AFTER A WHILE IT BECAME ONE OF THOSE ADDICTING THINGS SOME OUTSIDERS SAY SUCCESS COULD SPOIL PRECIOUS MOMENTS WHAT THEY DID VERY CLEVERLY WAS CREATE A COLLECTIBLE FOR THE INSPIRATIONAL MARKETPLACE SAYS SETH M SIEGEL COCHAIRMAN OF THE BEANSTALK GROUP INC A NEW YORKBASED LICENSING CONSULTING FIRM THE RISK WHEN YOU ADD ON A LOT OF LICENSEES IS PEOPLE START TO SEE THE COMMERCE IN IT AND NOT THE INSPIRATION IT IS DOUBTFUL THAT SAM BUTCHER WILL ALLOW THAT TO HAPPEN EVEN THOUGH HE ISN'T CLOSELY INVOLVED IN THE DAYTODAY BUSINESS WHEN ASKED WHAT ANNUAL SALES ARE HE SAYS HE DOESN'T KNOW HE RIGOROUSLY POLICES WHAT HE SEES AS THE SPECIAL CHARACTER OF PRECIOUS MOMENTS VETOING PLANS HE FEELS COMPROMISE ITS IMAGE I DRIVE JOHN WILD SOMETIMES HE SAYS OF HIS SON THE EXECUTIVE THE CHAPEL WHICH OPENED IN 1989 IS SAM BUTCHER'S SPECIAL PROJECT SO FAR HE HAS PAINTED 49 MURALS OUT OF A PLANNED 54 AMONG THE FINISHED WORKS THE CREATION AND THE LIFE OF CHRIST JESUS IS THE ONLY CHARACTER WHO IS PAINTED REALISTICALLY MR BUTCHER NOW IS WORKING ON A FOUNTAIN FOR THE CHAPEL GROUNDS HE WANTS IT TO BE BRONZE AND THREE STORIES TALL HE IS BUILDING IT IN BANGKOK THAILAND WHICH HE SAYS IS A CENTER FOR BRONZE HE SHARES AN APARTMENT THERE HE SAYS WITH ABOUT 40 FOURFOOT ANGELS THAT WILL BE PART OF THE FOUNTAIN THE ANGELS ALL HAVE TEARDROP EYES TO MR BUTCHER PRECIOUS MOMENTS IS ALMOST A CALLING HE OFTEN HEARS FROM PEOPLE WHO HAVE BEEN TOUCHED BY A FIGURINE OR MOVED BY THE CHAPEL RELIGIOUS AND OTHER GROUPS SEEK HIM OUT AS A SPEAKER WHEN I BECAME A CHRISTIAN I REALLY WANTED TO REACH PEOPLE HE SAYS AND I THINK THAT'S WHAT HAPPENED WITH PRECIOUS MOMENTS IT'S GIVEN ME OPPORTUNITIES TO MINISTER TO PEOPLE AND I FEEL GOOD ABOUT THAT 9309140005 930914 WATCHDOG GROUP SAYS FED IS FUELING SURGE IN STOCK BOND PRICES WASHINGTON THE SHADOW OPEN MARKET COMMITTEE A SELFAPPOINTED WATCHDOG GROUP SAID THE FEDERAL RESERVE IS FUELING A WORRISOME SURGE IN STOCK AND BOND PRICES BY ALLOWING THE MONEY SUPPLY TO GROW TOO RAPIDLY THE COMMITTEE CONSISTING OF ACADEMIC AND BUSINESS ECONOMISTS OF A MONETARIST BENT SAID THE FED RUNS THE RISK OF CREATING A BUBBLE IN SECURITIES PRICES THAT EVENTUALLY WILL BURST EXCESSIVE ASSET PRICE BUBBLES TEND TO HAVE NASTY ENDINGS WARNED MICKEY LEVY CHIEF FINANCIAL ECONOMIST OF NATIONSBANK CORP THE SHADOW COMMITTEE SAID THE FED'S HIGHLY EXPANSIVE MONETARY POLICY IS IMPRUDENT AND REMAINS ON AN INFLATIONARY PATH FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS SAID THAT THE LINK BETWEEN THE MONEY SUPPLY AND THE ECONOMY HAS BROKEN AND THAT THE MONEY SUPPLY IS NO LONGER A MEANINGFUL MEASURE ALTHOUGH THE ONCE ALLIMPORTANT M2 MEASURE OF THE MONEY SUPPLY WHICH CONSISTS OF CURRENCY CHECKING ACCOUNTS AND SOME SAVINGS AND MONEYMARKET ACCOUNTS ISN'T GROWING OTHER MEASURES PREFERRED BY THE SHADOW COMMITTEE ARE THE COMMITTEE SAID THAT THE MONETARY BASE WHICH CONSISTS OF BANK RESERVES AND CURRENCY SUPPLIED BY THE FED ROSE 11 IN THE YEAR ENDED IN AUGUST MR LEVY SAID THE FED'S EASY POLICY HASN'T GENERATED INFLATIONARY PRESSURES YET BECAUSE OF SUCH FACTORS AS THE SHRINKING DEFENSE INDUSTRY AND SLUGGISH HOUSING ACTIVITY HE SAID RAPID GROWTH IN BANK RESERVES HAS FUELED THE DEMAND FOR FINANCIAL ASSETS BIDDING UP THEIR PRICES THE COMMITTEE SAID THAT THE DECLINE IN INTEREST RATES STEMS IN GOOD PART FROM INVESTORS' VIEW THAT THE NEWLY ENACTED TAX BILL IS BAD FOR THE ECONOMY 9309140004 930914 AIRLINES DISCOUNT FARES AS MUCH AS 45 DROPPING PLAN FOR A 20 PRICE INCREASE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS REAPED A DOUBLE BONANZA YESTERDAY WHEN AIRLINES SCUTTLED A 20 FARE INCREASE AND SLASHED FALL FARES FOR LEISURE TRIPS BY AS MUCH AS 45 THE ACTIONS UNDERSCORE THAT THE INDUSTRY'S GLUT OF SEATS DESPITE EFFORTS BY SOME CARRIERS TO SCALE BACK GROWTH CONTINUES TO DEPRESS PRICES THE MOVES ALSO REFLECT FISSURES IN THE INDUSTRY IN THIS CASE NORTHWEST AIRLINES SANK THE FARE INCREASE AND SPARKED THE INDUSTRYWIDE FARE WAR ANGERING SOME AIRLINES THAT HAVE BEEN PLEADING FOR PRICE STABILITY AND HIGHER YIELDS THE SALE WHICH ENDS FRIDAY REPRESENTS THE DEEPEST DISCOUNT ON A PERCENTAGE BASIS SINCE LAST YEAR'S HALFOFF SUMMER SALE BUT THE BARGAINS THIS TIME AREN'T AS ATTRACTIVE BECAUSE THE BASE FARE IS MUCH HIGHER FOR EXAMPLE BEFORE THE 50 SALE OF 1992 A COASTTOCOAST ROUNDTRIP FARE PURCHASED 14 DAYS IN ADVANCE WAS ABOUT 450 NOW IT'S 609 THE FINANCIAL BLOODBATH THAT ACCOMPANIED LAST YEAR'S FARE WAR ALSO SHOULDN'T OCCUR THIS FALL AS THE INDUSTRY IS IMPOSING FAR MORE RESTRICTIONS ON WHEN TRAVELERS CAN USE THE DISCOUNTS WHILE THE SALE APPLIES TO TRAVEL THROUGH DEC 16 EXCLUDING NOV 24 AND NOV 28 THE STEEPEST DISCOUNTS ARE ONLY AVAILABLE ON TUESDAY WEDNESDAY AND SATURDAY AND ONLY APPLY ON CERTAIN ROUTES OTHERWISE TRAVELERS WILL RECEIVE DISCOUNTS RANGING FROM 25 TO 40 TICKETS MUST BE BOUGHT BY FRIDAY AND A 14DAY ADVANCE PURCHASE AND SATURDAY NIGHT STAY ARE REQUIRED ONE EXAMPLE A NEW YORKSAN FRANCISCO ROUNDTRIP TICKET THAT NORMALLY SELLS FOR 609 FALLS TO 338 WITH THE OFFPEAK 45 DISCOUNT WITH CERTAIN RESTRICTIONS THAT TICKET IS AVAILABLE FOR TRAVEL OTHER TIMES AT 35 OFF OR 396 ROUNDTRIP THE INITIATIVE EXPANDS UPON AN EXISTING FALL FARE SALE THAT BEGAN IN EARLY AUGUST AND WAS DUE TO EXPIRE WEDNESDAY THAT SALE LED BY DELTA AIR LINES INITIALLY CUT PRICES BY 35 THEN SCALED BACK THE DISCOUNTS TO 30 AND MOST RECENTLY 25 NORTHWEST A UNIT OF WINGS HOLDINGS INC SAID THAT DISCOUNT DIDN'T STIMULATE SUFFICIENT TRAFFIC AT A TIME WHEN CHILDREN ARE GOING BACK TO SCHOOL AND FEW VACATIONS ARE PLANNED EVEN THOUGH NORTHWEST WILL LIMIT THE DISCOUNT TICKETS ON EACH FLIGHT SLACK DEMAND HAS LEFT PLENTY OF SEATS FOR SALE SAID TIM GRIFFIN SENIOR VICE PRESIDENT OF MARKET PLANNING AND DEVELOPMENT AT NORTHWEST MR GRIFFIN DECLINED TO COMMENT ON WHY NORTHWEST DIDN'T RAISE ITS FARES OVER THE WEEKEND SCRAPPING THE 20 INCREASE THAT EVERY MAJOR AIRLINE HAD AGREED TO SOME MAJOR CARRIERS SUCH AS DELTA ONLY MATCHED THE FARE SALE IN COMPETING MARKETS OTHERS SUCH AS UAL CORP'S UNITED AIRLINES EXPANDED THE SALE INTO MARKETS WHERE NORTHWEST DOESN'T FLY SOME AIRLINES FEAR THAT THE SALE WON'T INCREASE REVENUE BUT SIMPLY PERMIT TRAVELERS WHO WERE GOING TO FLY ANYWAY TO NOW PAY A CHEAPER PRICE WE'RE GOING TO HAVE TO QUESTION THIS DEEP OF A DISCOUNT SAID A DELTA SPOKESMAN THE RESPONSE TO OUR PREVIOUS SALE WAS VERY STRONG A SPOKESMAN FOR AMERICAN AIRLINES A UNIT OF AMR CORP SAID SUFFICE IT TO SAY WE DIDN'T LEAD THIS SALE AND ARE ONLY MATCHING BECAUSE WE HAVE TO FARE SALES ARE OFTEN INITIATED TO GENERATE QUICK CASH NORTHWEST WHICH ESCAPED FILING FOR BANKRUPTCYLAW PROTECTION THIS SUMMER AFTER UNIONS AND LENDERS AGREED TO CONCESSIONS SAID QUICK CASH WAS NOT A FACTOR THIS TIME LAST MONTH NORTHWEST SAID ITS CASH POSITION WAS NORTH OF 300 MILLION BUT WOULDN'T SAY WHAT IT WAS YESTERDAY AIRLINE SHARES SURGED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UAL STOCK JUMPED 350 OR 24 TO 14650 DELTA SHARES ROSE 1375 OR 26 TO 5425 AND AMR STOCK GAINED 1625 OR 26 TO 6475 9309140003 930914 MARKETING & MEDIA GORY VIDEO GAME RACKS UP BIG SALES ON ITS OPENING DAY TEENAGE BOYS LINE UP TO BUY ACCLAIM'S MORTAL KOMBAT AMID WORRY OVER VIOLENCE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL EAGER BUYERS SWELLED FIRSTDAY SALES OF THE VIDEO GAME MORTAL KOMBAT YIELDING A BONANZA FOR RETAILERS AND MANUFACTURERS BUT HEIGHTENING CONCERN ABOUT VIOLENT PORTRAYALS IN ENTERTAINMENT MORTAL KOMBAT WHICH HAS BEEN POPULAR IN ARCADES BUT PREVIOUSLY UNAVAILABLE FOR THE HOME LETS PLAYERS BE A MARTIAL ARTS CHARACTER WHO CAN RIP OUT THE SPINES OF OPPONENTS DECAPITATE THEM OR THROW THEM OFF A BRIDGE ONTO A BED OF SPIKES ALREADY SPOTTED WITH DEAD BODIES IN SAN FRANCISCO AND ELSEWHERE TEENAGE BOYS LINED UP DESPITE SCHOOL FOR THE PRIVILEGE OF BEING THE FIRST TO SPEND AS MUCH AS 80 ON MORTAL KOMBAT WHICH PLAYS ON THE MOST WIDELY USED HOME VIDEO GAMES AND IS MADE BY ACCLAIM ENTERTAINMENT INC OF OYSTER BAY NY PEGGY CHARREN A MEDIA CONSULTANT AND FOUNDER OF ACTION FOR CHILDREN'S TELEVISION SAID THE MESSAGE HERE IS THAT IN SPITE OF ALL THE NOISE ABOUT VIOLENCE WE'RE MAKING MORE AND MORE VIOLENT VIDEO GAMES SHE ADDS RESEARCH SHOWS THAT EVERYBODY WHO IS INVOLVED IN VIOLENT ENTERTAINMENT TENDS TO THINK THAT VIOLENCE IS A SOLUTION TO PROBLEMS MORE OFTEN THAN THOSE WHO AREN'T IT'S THE BEST OPENING DAY SALES OF ANY TITLE IN OUR HISTORY SAID GARY KUSIN PRESIDENT OF THE BABBAGE'S CHAIN OF VIDEO GAME AND SOFTWARE OUTLETS NINTENDO OF AMERICA THE REDMOND WASH UNIT OF NINTENDO CO FORCED ACCLAIM TO ELIMINATE BLOOD AND DECAPITATIONS FROM THE NINTENDO VERSION IT HAS BEGUN CITING ITS TONEDDOWN VERSION OF MORTAL KOMBAT AS AN EXAMPLE OF ITS GAME CONTENT GUIDELINES THAT PROHIBIT EXCESSIVE AND GRATUITOUS VIOLENCE FROM GAMES LICENSED BY NINTENDO SEGA OF AMERICA A UNIT OF SEGA ENTERPRISES LTD TOKYO TAKES A DIFFERENT APPROACH GIVING GAMES RATINGS BASED ON WHAT ITS PANEL OF REVIEWERS THINKS IS APPROPRIATE IT RATES MORTAL KOMBAT AS APPROPRIATE FOR TEENAGERS RATHER THAN CHILDREN MORTAL KOMBAT IS A TEENAGE PRODUCT A GAME OF BATTLING IS A TEENAGE THEME TO TAKE THE BLOOD OUT DOESN'T CHANGE THE THEME SAYS ELLEN VAN BUSSKIRK DIRECTOR OF MARKETING SERVICES FOR SEGA THE BETTING IS THAT THE SEGA VERSION WILL BE THE BIGGER SELLER THE DATA SAY IT WILL BE THE BETTER SELLER OF THE TWO SAYS MR KUSIN OF BABBAGE'S GARY JACOBSON A TOY ANALYST WITH KIDDER PEABODY & CO SAYS UNFORTUNATELY I THINK THE VIOLENCE ENDS UP HELPING I PREDICT THAT THE SEGA VERSION OUTSELLS NINTENDO ACCLAIM SAYS IT HAS SHIPPED TO RETAILERS TWO MILLION COPIES OF THE GAME FOR TWO DIFFERENT GAME MACHINES AND TWO HANDHELD GAME PLAYERS IT IS SPENDING 10 MILLION TO LAUNCH THE PRODUCT IT DIDN'T DISCLOSE ITS PREDICTIONS FOR SALES ON SEGA'S OR NINTENDO'S MACHINES MORTAL KOMBAT IS ALMOST CERTAIN TO BE A HUGE HIT FOR ACCLAIM MR JACOBSON SAID HE EXPECTS 150 MILLION IN SALES OF THE GAME FOR THE FISCAL YEAR ENDING AUG 31 BOOSTING ACCLAIM'S TOTAL SALES TO 375 MILLION AND ITS PROFIT TO 34 MILLION THAT COMPARES WITH FISCAL 1993'S ESTIMATED SALES OF 300 MILLION AND PROFIT OF 26 MILLION MARKET WATCHERS SAY MORTAL KOMBAT IS UNLIKELY TO EXCEED TOTAL CARTRIDGE SHIPMENTS OF SUCH TAMER PRODUCTS AS NINTENDO'S SUPER MARIO BROTHERS AND SEGA'S SONIC THE HEDGEHOG BOTH THOSE PRODUCTS APPEAL TO ALL AGES MOREOVER THEY HAVE BEEN SHIPPED WITH THE GAME CONSOLE HARDWARE IN MANY CASES HOWEVER OVER TIME IT IS LIKELY TO CHALLENGE STREETFIGHTER 2 FROM CAPCOM LTD A JAPAN VIDEO GAME COMPANY FOR BESTSELLING ACTION GAME IN THE US SAYS JAMES WILLCOX SENIOR EDITOR OF THIS WEEK IN CONSUMER ELECTRONICS A NEW YORK TRADE PUBLICATION 9309140002 930914 WHO'S NEWS MICHAEL BAKER SAYS PRESIDENT AND CEO THOMAS QUIT POSTS PITTSBURGH RICHARD L SHAW CHAIRMAN OF MICHAEL BAKER CORP WAS NAMED TO THE ADDITIONAL POSTS OF INTERIM CHIEF EXECUTIVE OFFICER AND PRESIDENT FOLLOWING THE ABRUPT DEPARTURE OF WILLIAM G THOMAS MR THOMAS 58 YEARS OLD QUIT THOSE POSTS AND HIS SEAT ON THE BOARD OF DIRECTORS LAST TUESDAY BECAUSE OF LOSSES AT MICHAEL BAKER'S INTELCOM SUPPORT SERVICES UNIT MR SHAW SAID YESTERDAY HOWEVER MR THOMAS WILL REMAIN WITH THE ENGINEERING AND CONSTRUCTION CONCERN AS A CONSULTANT ANALYZING NEW ACQUISITIONS MR SHAW 66 SAID HE'S IN NO HURRY TO FIND A PERMANENT REPLACEMENT FOR MR THOMAS THE SHUFFLE FOLLOWS AN INTERNAL INVESTIGATION AND A PRICE WATERHOUSE REVIEW OF LOSSES AT INTELCOM MR SHAW SAID NEITHER INVESTIGATION TURNED UP EVIDENCE OF WRONGDOING HE SAID THE INVESTIGATIONS BEGAN IN JULY AND CONCLUDED FRIDAY DURING THE INVESTIGATION MICHAEL BAKER FIRED INTELCOM'S PRESIDENT JAY WARD 45 MR WARD WHO IS CURRENTLY LOOKING FOR WORK CONFIRMED THAT HE WAS DISMISSED MR THOMAS RESIGNED TUESDAY BECAUSE HE FELT PERSONALLY RESPONSIBLE FOR THE LOSSES AT INTELCOM MR SHAW SAID MR THOMAS WASN'T AVAILABLE TO COMMENT THE UNIT WHICH MICHAEL BAKER ACQUIRED IN 1986 ON THE ADVICE OF MR THOMAS BEGAN LOSING MONEY IN 1991 AS A RESULT OF ITS DECISION TO DIVERSIFY AWAY FROM ITS CORE OPERATIONS AND MAINTENANCE BUSINESS MR SHAW SAID IT BRANCHED INTO CABLE INSTALLATION AND HOUSING RENOVATION BUT ALTHOUGH INTELCOM KNEW A LITTLE ABOUT CABLE INSTALLATION THEY DIDN'T KNOW ANYTHING ABOUT HOUSING RENOVATION SAID MR SHAW AND QUITE FRANKLY WE SUFFERED MIGHTILY FOR IT 9309140001 930914 MARKETING & MEDIA KODAK UNVEILS FORUMS FOR ONLINE COMPUTER PHOTO BROWSING SERVICE ROCHESTER NY EASTMAN KODAK CO IS SET TO OFFER TWO APPLICATIONS FOR ITS KODAK PICTURE EXCHANGE BUSINESS AN ONLINE COMPUTER BROWSING SERVICE IT ANNOUNCED IN AUGUST 1992 ONE APPLICATION AVAILABLE THIS FALL ALLOWS STOCK PHOTO HOUSES TO SELL THEIR PHOTOGRAPHS TO ADVERTISING AGENCIES EDITORS AND OTHER CUSTOMERS VIA COMPUTER FOURTEEN PHOTO HOUSES HAVE SIGNED UP TO PUT 5000 TO 20000 PHOTOS EACH ON THE EXCHANGE THE PICTURES ARE SCANNED INTO THE NETWORK USING KODAK'S PHOTO CD TECHNOLOGY CUSTOMERS WITH DESKTOP COMPUTERS EQUIPPED WITH MODEMS AND SPECIAL SOFTWARE THAT KODAK WILL SELL WOULD DIAL UP THE EXCHANGE AND USE KEYBOARD COMMANDS TO BROWSE THROUGH THE PHOTOS FOR INSTANCE THE KEYWORDS SUNSET AND SAN FRANCISCO WOULD PULL UP ALL PHOTOS OF THAT CITY AT SUNSET CUSTOMERS COULD DOWNLOAD LOWRESOLUTION VERSIONS OF THE PHOTOS THEY LIKE FOR CLOSER INSPECTION IF THEY WANT TO BUY THE PHOTO THEY WOULD ORDER IT VIA COMPUTER THE SECOND APPLICATION A THREEMONTH PILOT PROGRAM ALLOWS STATE FILM COMMISSIONS TO MARKET THEIR STATES AS FILMING LOCATIONS TO MOVIE PRODUCERS THE COMMISSIONS WOULD PUT PICTURES OF THEIR STATES INTO THE EXCHANGE AND PRODUCERS COULD CALL THEM UP VIA MODEM TWO STATES NEW YORK AND ARKANSAS HAVE SIGNED UP TO OFFER PICTURES TO FOUR PARTICIPANTS IN THE PILOT PROGRAM DISNEY UNIVERSAL WARNER BROTHERS AND TWENTIETH CENTURY FOX STUDIOS WHEN KODAK FIRST ANNOUNCED THE PICTURE EXCHANGE LAST YEAR IT SAID IT HAD SIGNED AN AGREEMENT WITH HOMES & LAND PUBLISHING CORP TO MARKET PICTURES OF REAL ESTATE SITES TO POTENTIAL BUYERS A KODAK SPOKESMAN SAID HE HAD NO UPDATE ON WHEN THIS SERVICE MIGHT BE AVAILABLE 9309140156 930823 REVIEW & OUTLOOK EDITORIAL SPINNING WHEELS AGAIN SCHWINN IS THE GRAND OLD NAME OF AMERICAN BICYCLING AND SOME GUTSY ENTREPRENEURS ARE TRYING TO KEEP IT FROM APPEARING ON AN INDUSTRIAL TOMBSTONE IT LOOKS LIKE THEY WILL NOT HAVE THE HELP OF THE CLINTON ADMINISTRATION IN DOING SO LIKE MOST CYCLES SOLD IN THE US EXPENSIVE OR NOT SCHWINNS ARE MADE ABROAD BUT WHAT REMAINS EXCEPTIONAL ABOUT THE BRANDNAME IS ITS EXTRAORDINARY DEALER NETWORK SPANNING THE COUNTRY IN 1800 LOCATIONS THE SERVICE AND CYCLING EDUCATION THESE SHOPS PROVIDE HAVE BEEN VITAL TO THE MARKETING OF SCHWINN'S PRODUCT THE SAME IS TRUE OF A NUMBER OF OTHER MAKES SOLD THROUGH INDEPENDENT BICYCLE DEALERS BUT THE RETAIL BICYCLE BUSINESS LIKE MANY OTHERS IS CHANGING IN THE US MORE THAN 70 OF BIKES ARE NOW SOLD THROUGH MASSMARKET STORES AND DISCOUNTING IS RAMPANT SCHWINN AND SOME OTHER SELLERS OF QUALITY LINES WOULD LIKE TO PROTECT THE DEALERS WHO FUNNEL THEM BUSINESS AND ONE WAY TO DO THAT IS TO MAINTAIN PRICE FLOORS AND THEREFORE MARGINS ALL THE WAY TO FINAL SALE THE SAME THING IS TRUE IN OTHER INDUSTRIES WHICH ALSO HAVE BRANDED PRODUCTS TO THE NEW CLINTON TEAM AT THE ANTITRUST DIVISION OF THE JUSTICE DEPARTMENT THIS TYPE OF ACTIVITY IS VERTICAL PRICEFIXING AND A PUNISHABLE OFFENSE ASSISTANT ATTORNEY GENERAL ANNE BINGAMAN'S RECENT SPEECH TO THE AMERICAN BAR ASSOCIATION WAS A SIGNAL THAT THE GOVERNMENT WAS RETURNING TO THE PROSECUTORIAL STANCE IT TOOK DURING THE CARTER ADMINISTRATION RONALD REAGAN'S TEAM AT JUSTICE HAD REVERSED THAT POLICY IT ARGUED AND THE FEDERAL COURTS INCREASINGLY HAVE AGREED THAT THE MARKETPLACE IS BIG AND OPEN ENOUGH TO INCORPORATE A VARIETY OF RETAIL ARRANGEMENTS AND THAT SOMETIMES RESALE PRICE MAINTENANCE CAN BE OF USE TO CONSUMERS SURELY THE SHOPPING EXPERIENCE OF THE LAST DECADE HAS BORNE OUT THE REAGAN ANTITRUST PHILOSOPHY THE BUYING PUBLIC HAS SEEN A KALEIDOSCOPE OF CHOICES INCLUDING THE DISCOUNTING OF WIDE NUMBERS OF PREMIUM WARES OVERALL PROOF THAT THE MARKET IS WORKING PRICES IN GENERAL ARE STABLE OR FALLING AND BY NOW CONSUMERS CERTAINLY UNDERSTAND THAT PRICE PREMIUMS IN SOME STORES BUY SERVICE AND INFORMATION VERSUS THE FEWFRILLS DISCOUNT OPERATIONS THE CHOICE IS THEIRS HOWEVER THE CLINTONITES BELIEVE THEY HAVE A SWEEPING MANDATE TO OVERTURN THE 1980S SO WE FACE THE PROSPECT OF RENEWED LITIGATION BY ANTITRUST BUSYBODIES WHO WANT TO SECOND GUESS THE OPERATION OF AMERICAN BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR SCHWINN YOUTHFUL CONFIDENT BANKRUPT WSJ SEPT 14 1993 9308230114 YY93 MM09 9309140065 930823 THE OUTLOOK JOB GROWTH WILL STAY WEAK BUT SO WHAT BY LINDLEY H CLARK JR NEW YORK NO ONE CAN DENY THAT AN ECONOMIC RECOVERY IS UNDER WAY GROSS DOMESTIC PRODUCT HAS BEEN GROWING FOR NINE CONSECUTIVE QUARTERS AND FORECASTERS EXPECT ECONOMIC GROWTH TO CONTINUE AT LEAST THROUGH NEXT YEAR BUT JOB GROWTH HAS BEEN UNUSUALLY SLOW AND THE BUREAU OF LABOR STATISTICS THINKS IT WILL STAY SLOW WELL INTO THE NEXT CENTURY THE BUREAU ESTIMATES THAT TOTAL EMPLOYMENT WILL GROW AT AN ANNUAL RATE OF 12 IN THE 19902005 PERIOD COMPARED WITH A GROWTH RATE OF 23 IN THE PREVIOUS 15 YEARS IS THIS TRAGIC NOT REALLY ACCORDING TO THE BLS THE SLOWER GROWTH OF JOBS WILL BE ACCOMPANIED BY A VERY SLOW GROWTH OF THE LABOR FORCE THE GROWTH OF JOBS DROPPED SHARPLY IN THE 199091 RECESSION PUSHING UP THE UNEMPLOYMENT RATE THE RATE LAST MONTH STOOD AT 68 BETWEEN NOW AND 2005 THE BLS EXPECTS JOBS TO GROW FAST ENOUGH TO PUSH THE JOBLESS RATE DOWN TO 55 THAT ISN'T GREAT PERHAPS BUT IT IS PRECISELY WHERE THE RATE WAS IN 1990 AFTER A DECADE OF REAGAN PROSPERITY THE BLS MAKES ITS FORECASTS CAREFULLY BUT IT FOLLOWS A CARDINAL RULE OF ECONOMIC PREDICTING IF YOU HAVE TO FORECAST THE ECONOMY FORECAST IT A LOT THE BUREAU MAKES EXTENSIVE FORECASTS EVERY OTHER YEAR AND IT COMES UP WITH NOT ONE BUT THREE SCENARIOS HIGH GROWTH MODERATE GROWTH AND LOW GROWTH THEN BEING CAREFUL FOLKS THE BLS ANALYSTS BASE MOST OF THEIR SPECIFIC FORECASTS ON THE MODERATE VIEW PRESIDENT CLINTON WANTS CHANGE IN THE ECONOMY AND HE IS SURELY GOING TO GET SOME BETWEEN NOW AND 2005 THE LABOR FORCE THOSE WORKING OR LOOKING FOR WORK IS EXPECTED TO GROW AT AN ANNUAL RATE OF 13 DOWN FROM A 19 RATE IN THE PREVIOUS DECADE AND A HALF SO OVER THE ENTIRE 19902005 PERIOD THE LABOR FORCE IS PREDICTED TO GROW AT ABOUT THE SAME RATE AS THE NUMBER OF JOBS LEAVING THE JOBLESS RATE JUST WHERE IT WAS IN 1990AT 55 THE SLOWDOWN IN LABORFORCE GROWTH BETWEEN 197590 AND THE SUCCEEDING 15 YEARS WILL BE DUE BOTH TO SLOWER GROWTH OF THE WORKINGAGE POPULATION AND TO A SLOWER RISE IN THE PARTICIPATION RATE ACCORDING TO THE BUREAU'S ARITHMETIC THE OLDER LABOR FORCE WORKERS AGED 55 AND OVER IS EXPECTED TO GROW BY 437 IN THE 19902005 PERIOD COMPARED WITH A RISE OF ONLY 76 IN THE PREVIOUS 15 YEARS A MAJOR REASON IS THAT THE BABY BOOMERS WORKERS BORN JUST AFTER WORLD WAR II ARE GETTING OLDER THEY ARE NO LONGER SUCH A LARGE FACTOR IN THE GROWTH IN THE TOTAL LABOR FORCE THEY MADE THEIR PEAK CONTRIBUTION IN 1985 BUT INCREASING NUMBERS ARE MOVING INTO THE OVER55 GROUP WOMEN ARE STILL PLAYING A GROWING ROLE IN THE WORK FORCE BUT THE GROWTH HAS SLOWED THE SIZE OF THE WOMEN'S LABOR FORCE IS EXPECTED TO INCREASE 26 IN THE 19902005 PERIOD DOWN FROM A 51 GAIN IN THE PRECEDING DECADE AND A HALF THE BUREAU HOWEVER EXPECTS A SLOWER RISE IN LABORFORCE PARTICIPATION OF YOUNGER WOMEN REFLECTING IN PART THE INCREASE IN THE BIRTH RATE IN THE PAST DECADE AND THE ACCOMPANYING DIFFICULTY OF ARRANGING FOR CHILD CARE MANY AMERICANS OF COURSE CAN FIND LITTLE COMFORT IN THE FACT THAT THE UNEMPLOYMENT RATE IN 2005 WILL BE ABOUT WHAT IT WAS IN 1990 WHAT BOTHERS THEM ARE THEIR OWN CURRENT JOB SITUATIONS WHICH OFTEN AREN'T VERY GOOD THE GOVERNMENT REPORTED AN INCREASE OF 162000 PAYROLL JOBS IN JULY A REASONABLY HEALTHYLOOKING NUMBER BUT M KATHRYN EICKHOFF AN ECONOMIC CONSULTANT HAS TROUBLE RECONCILING THAT FIGURE WITH THE LACKLUSTER BUSINESS CONDITIONS OF THE PAST MONTH ONE SUGGESTION THE MIDWEST FLOODS LED TO ABSENCES OF THOUSANDS OF WORKERS WHO REMAINED ON PAYROLLS BUT WEREN'T PAID ANOTHER PROBLEM IS THAT MANUFACTURING JOBS ARE EXPECTED TO DROP AT AN ANNUAL RATE OF AROUND 02 A YEAR IN THE 19902005 PERIOD THIS MEANS THAT ABOUT 600000 JOBS JOBS THAT TEND TO BE AMONG THE BETTERPAYING POSITIONS AVAILABLE WILL DISAPPEAR THE REASON THE BLS THINKS MANUFACTURERS WILL CONTINUE TO RAISE PRODUCTIVITY PRODUCTIVITY IS GOOD FOR THE COUNTRY BUT IF THE BUREAU IS RIGHT SOME JOBLESS WORKERS MAY DISPUTE THE POINT IN THE NEXT FEW YEARS THERE ARE HOWEVER SEVERAL FACTORS THAT ARE LIKELY TO HOLD TOTAL EMPLOYMENT AT RESPECTABLE LEVELS OVER THE 19902005 PERIOD THE SERVICEPROVIDING SECTOR WILL CONTINUE TO ACCOUNT FOR ALMOST ALL OF THE JOB GAINS A STAR IN THIS SECTOR IS HEALTH SERVICES WHICH GREW FROM 41 MILLION JOBS IN 1975 TO 78 MILLION IN 1990 THE BLS LOOKS FOR A FURTHER GAIN OF 37 MILLION JOBS IN THE 19902005 PERIOD THE OUTLOOK FOR CONTINUED JOB GROWTH IN THE HEALTHCARE FIELD REFLECTS IN PART THE RISING MEDIAN AGE OF THE POPULATION PUSHING MORE PEOPLE INTO AGE GROUPS WHERE THE DEMAND FOR MEDICAL SERVICES BEGINS TO RISE DRAMATICALLY BEYOND THAT THERE IS NO REASON TO BELIEVE THAT THE STREAM OF TECHNOLOGICAL ADVANCES THAT HAVE HELPED TO SPUR THE DEMAND FOR MEDICAL CARE WILL SLOW FINALLY DESPITE THE TALK OF CURBING MEDICAL COSTS THERE HAS BEEN UP TO NOW NO NOTICEABLE SLOWING OF EMPLOYMENT GROWTH RETAIL TRADE IS EXPECTED TO ADD 5121000 JOBS IN THE 19902005 PERIOD THE FASTEST PREDICTED JOB GROWTH IN THIS GROUP IS IN APPAREL AND ACCESSORY STORES AND EATING AND DRINKING ESTABLISHMENTS THE GAINS WILL REFLECT CONTINUING GROWTH OF PERSONAL INCOME AND CONTINUED INCREASES IN LABORFORCE PARTICIPATION BY WOMEN SO NO BOOM IS IN PROSPECT BUT JOBS WILL GROW STEADILY PUSHING DOWN THE UNEMPLOYMENT RATE FROM THE CURRENT LEVEL WE COULD DO WORSE SEE RELATED LETTER LETTERS TO THE EDITOR LATE BOOMERS WSJ SEPT 14 1993 9308230004 YY93 MM09 9309140058 930818 REGULATORY CHOKEHOLD THE MANDATE MILLSTONE BY MATTHEW REES SOME OF THE LOUDEST COMPLAINTS THAT CAME OUT OF THE NATIONAL GOVERNORS' CONFERENCE THIS WEEK WERE OVER UNFUNDED MANDATES TOO OFTEN THE FEDERAL GOVERNMENT REQUIRES STATES TO FOLLOW AND ENFORCE COSTLY REGULATIONS WITHOUT GIVING THEM THE MEANS TO PAY FOR THEM MANDATES MAY SEEM LIKE AN ARCANE TOPIC BUT THEIR EFFECT AT BEST IS TO STRAIN THE FINANCES OF STATE AND LOCAL GOVERNMENTS ED RENDELL THE REFORMMINDED MAYOR OF PHILADELPHIA HAS CALLED THEM A RUNAWAY EXPRESS TRAIN AND THERE'S ONLY ONE GROUP THAT'S IN THE TRACKS AND THAT'S THE MAYORS AND THE CITIZENS AT WORST MANDATES THREATEN THESE GOVERNMENTS' AUTONOMY AND THE CONCEPT OF FEDERALISM AS WE KNOW IT THE MANDATE ISSUE IS FREQUENTLY A SIMPLE AND A CLASSIC CASE OF CONGRESSIONAL IRRESPONSIBILITY TAKE THE SOCALLED MOTOR VOTER ACT SIGNED INTO LAW MAY 20 IT IS SUPPOSED TO MAKE IT EASIER FOR STATES TO REGISTER VOTERS BY LINKING VOTER REGISTRATION TO DRIVER'S LICENSE APPLICATIONS THE IDEA IS HIGHMINDED BUT THE COST TO STATES IS HEAVY THE LEGISLATION AUTHORIZES VIRTUALLY NO FEDERAL MONEY TO OFFSET THE MORE THAN 100 MILLION IN COSTS THAT WILL BE IMPOSED ON STATES AND LOCALITIES OVER THE NEXT FIVE YEARS MOTOR VOTER IS BUT ONE EXAMPLE IN THE TIDE OF UNFUNDED MANDATES THAT HAS ENGULFED STATE AND LOCAL GOVERNMENTS IN RECENT YEARS ACCORDING TO THE ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS A FEDERAL AGENCY THERE WERE 100 NEW MANDATES PASSED DOWN FROM WASHINGTON TO THE STATES DURING THE 1980S IN THE 1940S THERE WERE JUST 16 REQUIRED STATE SPENDING ON MEDICAID THE GRANDDADDY OF ALL THE MANDATES HAS INCREASED TO 17 OF ALL STATE SPENDING FOR FISCAL 1992 FROM 10 IN 1987 AND COULD REACH 25 BY 1995 A BIG TOPIC AT THE GOVERNORS' MEETING WAS ENVIRONMENTAL MANDATES FROM THE EARLY 1970S ON REMEMBER THE 1974 CLEAN WATER ACT FEDERAL LEGISLATORS HAVE LAID MASSIVE AND SOMETIMES CRIPPLING ENVIRONMENTAL REQUIREMENTS ON THE STATES AND HAVE DONE VERY LITTLE TO HELP OFFSET THE COSTS LAST YEAR AN OHIO MUNICIPAL LEAGUE SURVEY OF NINE OHIO CITIES FORECAST THAT THE COST IN THIS DECADE FOR THESE CITIES TO COMPLY WITH ENVIRONMENTAL MANDATES WOULD BE A WHOPPING 285 BILLION SOME OF THIS SPENDING IS UNDOUBTEDLY USEFUL BUT NOT ALL OF IT THE STUDY FOUND THAT UNDER THE TERMS OF THE FEDERALLY IMPOSED SAFE DRINKING WATER ACT ALL OHIO COMMUNITIES ARE REQUIRED TO TEST THEIR WATER FOR 52 DIFFERENT PESTICIDES EVEN THOUGH ONLY NINE OF THE 52 HAVE EVER BEEN DETECTED WITHIN OHIO WATERS SIMILARLY OHIO'S LOCAL GOVERNMENTS WERE UNTIL VERY RECENTLY REQUIRED TO MONITOR THE PRESENCE OF A COMPOUND CALLED DBCP IN THE WATER SUPPLY EVEN THOUGH ITS USE MOSTLY ON PINEAPPLES IN HAWAII ENDED IN 1977 ANTIMANDATE SENTIMENT APPEARS TO BE REACHING A FEVER PITCH IN WASHINGTON AN ENRAGED COALITION OF LOCAL GOVERNMENT GROUPS HELD A PRESS CONFERENCE LAST THURSDAY TO ANNOUNCE A NATIONAL CAMPAIGN TO END UNFUNDED MANDATES GOV PETE WILSON OF CALIFORNIA ANNOUNCED AN EFFORT LAST WEEK SEEKING 14 BILLION IN REIMBURSEMENT FOR IMMIGRATIONRELATED MANDATES IN THIS CASE THE FEDERAL GOVERNMENT IS REQUIRED BY LAW TO PAY A SHARE OF THE COSTS BUT HAS WELSHED ON THE DEAL CAPITOL HILL FOR ITS PART SEEMS TO BE GETTING THE MESSAGE THERE ARE 20 BILLS FLOATING AROUND CONGRESS SPONSORED BY A BROAD CROSSSECTION OF DEMOCRATS AND REPUBLICANS THAT IN ONE WAY OR ANOTHER WOULD OUTLAW THE PRACTICE OF PASSING LEGISLATION THAT IMPOSES UNFUNDED MANDATES THE MORE HOPEINSPIRING OF THESE CALL FOR PUTTING SOME TEETH INTO THE LOCAL GOVERNMENT COST ESTIMATE ACT THIS 1982 LAW REQUIRES THE CONGRESSIONAL BUDGET OFFICE TO PREDICT THE MANDATERELATED COSTS OF ALL LEGISLATION EXPECTED TO PLACE BURDENS ON STATES AND LOCALITIES IN EXCESS OF 200 MILLION CLOSE TO 600 SUCH ESTIMATES ARE DONE ANNUALLY BUT THERE'S LITTLE INDICATION THAT CONGRESS EVER TAKES THEM INTO ACCOUNT TWO STATES ALABAMA AND SOUTH DAKOTA ARE TAKING A NOVEL APPROACH TO THE PROBLEM BY REQUIRING THEIR REPRESENTATIVES FROM CONGRESS TO APPEAR BEFORE THEM ON A REGULAR BASIS AND EXPLAIN THEIR MANDATEIMPOSING VOTES FOURTEEN OTHER STATES ARE CONSIDERING SIMILAR LEGISLATION THERE IS OF COURSE AN ELEMENT OF HYPOCRISY IN STATE AND LOCAL GOVERNMENTS' COMPLAINTS ABOUT MANDATES OFFICIALS WHINE ABOUT MANDATED BURDENS BUT THEY HAVE LESS TO SAY WHEN QUIZZED ABOUT THE HIRING BINGE IN THE 1980S A PERIOD WHEN STATE EMPLOYMENT ROLLS INCREASED AT MORE THAN TWICE THE RATE OF POPULATION INCREASE MOREOVER SALARIES AND BENEFITS FOR STATE EMPLOYEES INCREASED FOUR TIMES FASTER THAN THEY DID IN THE VERY PROSPEROUS PRIVATE SECTOR BUT THE HEART OF THE MANDATE MILLSTONE STEMS FROM THE CENTRALIZATION OF GOVERNMENT ACTIVITY IN WASHINGTON BEGINNING WITH THE NEW DEAL AND LATER THE GREAT SOCIETY AN INCREASING NUMBER OF RESPONSIBILITIES HAVE BEEN PUT INTO THE HANDS OF WASHINGTON'S RULING CLASS THE FEDERAL GOVERNMENT HAS LIVED UP TO ONLY THE EASY HALF OF THE EQUATION IT HAS HAD THE COURAGE TO PASS EXPENSIVE INTERVENTIONIST LAWS BUT HAS INCREASINGLY SHIFTED THE RESPONSIBILITY TO LOWER LEVELS OF GOVERNMENT ONE OF THE BOLDEST SOLUTIONS OFFERED SO FAR WOULD BE TO DEVOLVE THE FEDERAL GOVERNMENT'S RESPONSIBILITIES TO STATE AND LOCAL GOVERNMENTS A VOCAL ADVOCATE OF SUCH FEDERALISM IS NONE OTHER THAN ALICE RIVLIN BILL CLINTON'S DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET A FORMER CHAIRWOMAN OF THE CBO MS RIVLIN WROTE IN REVIVING THE AMERICAN DREAM A BOOK PUBLISHED LAST YEAR THAT THE FEDERAL GOVERNMENT SHOULD SHIFT ITS RESPONSIBILITIES IN AREAS SUCH AS EDUCATION HOUSING HIGHWAYS SOCIAL SERVICES ECONOMIC DEVELOPMENT AND JOB TRAINING BACK TO THE STATES WITH REGARD TO MANDATES THE EFFECT OF SUCH A MOVE WOULD BE LESS BUCKPASSING LITERALLY AND FIGURATIVELY AND MORE ACCOUNTABILITY THE CASSANDRAS OF STATE AND LOCAL GOVERNMENT ARGUE THAT CONTINUED NEGLECT AND ABUSE FROM WASHINGTON WILL MEAN THE DEATH OF THE STATES THEY MAY EXAGGERATE BUT MANDATES IN ANY CASE CHALLENGE AND DESTROY THE ROLE OF STATES AS MANY AMERICANS INCLUDING SUPREME COURT JUSTICE LOUIS BRANDEIS HAVE KNOWN IT IN 1932 THE JUSTICE WROTE IT IS ONE OF THE HAPPY INCIDENTS OF THE FEDERAL SYSTEM THAT A SINGLE COURAGEOUS STATE MAY IF ITS CITIZENS CHOOSE SERVE AS A LABORATORY AND TRY NOVEL SOCIAL AND ECONOMIC EXPERIMENTS WITHOUT RISK TO THE REST OF THE COUNTRY MR REES IS A JOURNAL EDITORIAL PAGE WRITER SEE RELATED LETTER LETTERS TO THE EDITOR CHICAGO TAKES ON THE MANDATE MONSTER WSJ SEPT 14 1993 9308180069 YY93 MM09 9309140016 930810 THERE IS NO CASE FOR LEGALIZING DRUGS BY THOMAS P GRIESA THE EFFORT TO ENFORCE THE FEDERAL AND STATE NARCOTICS LAWS IS PRODUCING A GOOD DEAL OF FRUSTRATION CERTAIN PROMINENT COMMENTATORS INCLUDING THREE RESPECTED FEDERAL JUDGES IN NEW YORK CITY TAKE THE VIEW THAT THE WAR ON DRUGS UNDER THE CRIMINAL LAW IS LARGELY A FAILURE WHAT THEY WOULD SUBSTITUTE IS DIFFICULT TO PRESENT IN A BRIEF SUMMARY MOST FAVOR LEGALIZATION OR AT LEAST CONSIDERATION OF SUCH A STEP AND SOME SUGGEST A SHIFT OF RESOURCES FROM CRIMINAL LAW ENFORCEMENT TO TREATMENT IT IS RARE FOR JUDGES TO TAKE A PUBLIC POSITION FOR OR AGAINST A BODY OF STATUTORY LAW BUT THERE IS NO REASON IN PRINCIPLE WHY THEY SHOULD NOT AND THE JUDGES WHO ARE CRITICAL OF THE NARCOTICS LAWS ARE SPEAKING FROM THEIR DEEPEST CONVICTIONS ABOUT A UNIQUE AND AGGRAVATED NATIONAL PROBLEM HOWEVER THE PUBLIC SHOULD KNOW THAT THERE ARE JUDGES WHO TAKE A SHARPLY DIFFERENT VIEW I AM ONE NARCOTICS TRAFFICKING IS AS GRIEVOUS AN EVIL AS ANY CRIME ON THE BOOKS IT IS THE DIRECT CAUSE OF DEATH ON A BROAD SCALE AND WHEN LITERAL DEATH DOES NOT OCCUR THE DESTRUCTION OF FUNCTIONING LIVES DOES IT IS DIFFICULT TO UNDERSTAND HOW SOCIETY COULD FAIL TO DECLARE NARCOTICS TRAFFICKING TO BE A SERIOUS CRIME AS THE PROBLEM LIES WITH ENFORCEMENT IT MAY HELP TO CONSIDER THIS IN THE CONTEXT OF CRIMINAL LAW ENFORCEMENT IN GENERAL THE AGEOLD CRIMES OF MURDER RAPE BURGLARY ETC HAVE BEEN WITH US SO LONG THAT WE DO NOT EXPECT TO WAGE A SHORTTERM WAR AGAINST THEM THAT WE PLAN TO WIN WE PLUG ALONG GENERATION AFTER GENERATION DOING THE BEST WE CAN TO CATCH MURDERERS AND THIEVES AND NO ONE SUGGESTS THAT WE TAKE THESE CRIMES OFF THE STATUTE BOOKS BECAUSE WE HAVE NOT ACHIEVED SOME IDEAL SOLUTION SERIOUS NARCOTICS TRAFFICKING AND USAGE STRUCK THIS COUNTRY FAIRLY RECENTLY THIS FACT PLUS THE PARTICULAR SEVERITY OF THE PROBLEM LED TO THE HOPE THAT WITH STRENUOUS LAW ENFORCEMENT EFFORTS THE PROBLEM COULD BE WIPED OUT OR GREATLY REDUCED THIS HAS NOT OCCURRED IT IS UNREALISTIC TO HAVE OUR EXPECTATIONS TOO HIGH THE TEMPTATIONS OF THE NARCOTICS TRADE ARE SO STRONG THAT EXTRAORDINARY PATIENCE AND RESOURCEFULNESS ARE NECESSARY TO ACHIEVE A REMEDY BUT NONE OF THIS MEANS THAT NARCOTICS TRAFFICKING SHOULD NOT CONTINUE TO BE CLASSIFIED IN OUR LAW AS A SERIOUS CRIME 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 OF IT WE SHOULD BEAR IN MIND THAT THE FOUNDATIONAL FACT ABOUT THE CRIMINAL LAW IS THAT IT IS A MORAL JUDGMENT DIFFICULTIES OF ENFORCEMENT HAVE ALWAYS BEEN WITH US FOR EVERY FORM OF CRIME BUT THIS HAS NOT CAUSED US TO DRAW BACK FROM MAKING THE MORAL JUDGMENTS MOREOVER THE EXISTENCE OF THE LAWS REGARDLESS OF THE PROBLEMS OF ENFORCING THEM HAVE GREAT IMPORTANCE EVEN IN OUR FRACTURED SOCIETY MOST PEOPLE RESPECT THE LAW AND IT IS A MOST SERIOUS MATTER TO THEM WHETHER SOMETHING IS OR IS NOT DECLARED TO BE A CRIME AS TO THE ENFORCEMENT OF THE LAW THE FEDERAL AND STATE GOVERNMENTS MUST CONTINUE TO DO THE BEST THAT CAN BE DONE UNDER THE CIRCUMSTANCES RECOGNIZING THAT THERE ARE LIMITS AS WITH OTHER CRIMES BUT EVERY PROSECUTION THAT BREAKS A DRUG RING AND EVERY SEIZURE OF A QUANTITY OF DRUGS SHOULD BE RECOGNIZED FOR WHAT IT IS SOME IMPAIRMENT OF THE NARCOTICS TRADE CUMULATIVELY THE EFFORTS ARE VASTLY BETTER THAN NOTHING THE SUGGESTION OF SHIFTING RESOURCES FROM CRIMINAL LAW ENFORCEMENT TO TREATMENT IS AN INVITATION TO EVEN GREATER FRUSTRATION THAN IS NOW EXPERIENCED OF COURSE THERE SHOULD BE TREATMENT BECAUSE LIKE LAW ENFORCEMENT IT ACCOMPLISHES SOME GOOD BUT ITS SUCCESS RATE IS NOT SUFFICIENT TO JUSTIFY THE DEGREE OF RELIANCE THAT IS PROPOSED WHEN CONDITIONS ARE BAD THERE IS USUALLY A DESIRE FOR CHANGE BUT ONE SIMPLE FACT MUST BE REMEMBERED THINGS CAN BE WORSE AS BAD AS THE SITUATION NOW IS THE CONSEQUENCES OF LEGALIZING NARCOTICS WOULD BE FAR GRAVER SPECIFICALLY A GREAT INCREASE IN THE USE OF NARCOTICS AND IN NARCOTICS ADDICTION THE ANALOGY TO ALCOHOLIC BEVERAGES AND PROHIBITION IS MISPLACED ALTHOUGH THERE IS AN INCREASED RECOGNITION OF THE HARM THAT ALCOHOL INFLICTS UPON SOCIETY THE FACT IS THAT ITS USE HAS BEEN SANCTIONED FROM TIME IMMEMORIAL THE REPEAL OF PROHIBITION PROVIDES NO PRECEDENT FOR LEGALIZING HEROIN AND COCAINE ALTHOUGH I FAVOR THE CONTINUED CRIMINALIZATION OF NARCOTICS I SHARE THE VIEWS OF NUMEROUS OTHER FEDERAL JUDGES THAT THE PRESENT SENTENCING LAWS ARE MISGUIDED THE FEDERAL SENTENCING GUIDELINES FREQUENTLY PRODUCE SENTENCES THAT ARE EITHER TOO HIGH OR TOO LOW BECAUSE THE GUIDELINES MINDLESSLY EQUATE CULPABILITY WITH THE QUANTITY OF THE DRUGS ALSO CONGRESS HAS ENACTED CERTAIN VERY HIGH MINIMUM SENTENCES THAT EVEN THOSE OF US WHO BELIEVE IN THE CONTINUED ENFORCEMENT OF THE NARCOTICS LAWS CONSIDER TOO HARSH JUDGE GRIESA IS CHIEF JUDGE OF THE US DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SEE RELATED LETTERS LETTERS TO THE EDITOR DRUGS LAWS VIOLATE PRINCIPLE OF LIBERTY WSJ SEPT 14 1993 9308100078 YY93 MM09 9309130170 930913 THE EDITORS VOW THEY WILL COVER THE SAME SUBJECT OVER AND OVER BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL QUICK GEORGE STEPHANOPOULOS THE SENIOR POLICY ADVISER TO THE PRESIDENT WAS BORN WHICH OF FOUR CHILDREN OLDEST YOUNGEST OR SOMEWHERE IN BETWEEN DON'T KNOW AND DON'T CARE THEN THE QUIZ IN THE STEPHANOPOULETTER PROBABLY WON'T DO MUCH FOR YOU ON THE OTHER HAND IF TRIVIA ABOUT THE CLINTON AIDE TURN YOU ON THEN THE GEORGE STEPHANOPOULOS FAN CLUB COULD BE THE TICKET THE BRAINCHILD OF TWO STANFORD UNIVERSITY GRADUATE STUDENTS THE CLUB PLANS TO PUBLISH THE FANZINE QUARTERLY THE FIRST ISSUE PUBLISHED THIS SUMMER FEATURES A STEPHANOPOULOS ENEMIES LIST INCLUDING WHITE HOUSE RIVALS REPUBLICANS AND MEDIA TYPES AND AN ANALYSIS OF WHY MEMBERS OF THE PRESS HAVE BEEN SO TOUGH ON MR STEPHANOPOULOS THEY ARE JEALOUS THE CLUB WAS FOUNDED RECENTLY BY POLLY LEE ARENBERG 28 YEARS OLD AND MICHAEL MELCHER 30 WHO WERE TIRED OF HEARING THOSE IN THEIR POSTBABYBOOM GENERATION DISMISSED AS JADED SLACKERS WE DISCOVERED ONE DAY WE HAD THIS MUTUAL FASCINATION FOR GEORGE STEPHANOPOULOS SAYS MR MELCHER A HARVARD GRADUATE WORKING ON DEGREES IN LAW AND BUSINESS AT STANFORD HE REPRESENTS A FOCUS FOR OUR OWN BELIEFS IN A LOT OF WAYS HE REPRESENTS FOR US THE HOPE OF THIS ADMINISTRATION TEN BUCKS GETS YOU THE FANZINE A MEMBERSHIP CARD AND A GEORGE BUTTON SO FAR THE CLUB SAYS MORE THAN 100 PEOPLE HAVE JOINED RANGING FROM HIGHSCHOOL GIRLS TO OLDER PROFESSIONALS MS ARENBERG A BUSINESS STUDENT SAYS PEOPLE OF GREEK HERITAGE OR WITH THE NAME GEORGE AS WELL AS CNN JUNKIES FROM AROUND THE WORLD HAVE WRITTEN THE CLUB AS WELL THE NEXT ISSUE DUE OUT THIS MONTH FEATURES A PHOTO OF MR STEPHANOPOULOS'S CAR AND THE WINNING ESSAY FROM A CONTEST TO DESCRIBE THE DREAM DATE WITH GEORGE CONTENDERS INCLUDE A PAEAN TO GETTING MR STEPHANOPOULOS DRUNK AND A COMPOSITION ABOUT WATCHING BRADY BUNCH RERUNS WITH HIM SEVERAL ENTRIES WERE TOO SEXUALLY EXPLICIT TO BE PUBLISHED THE WINNER WILL GET A FREE DINNER FOR TWO BUT NOT UNFORTUNATELY WITH GEORGE AND WHAT DOES THE OBJECT OF THIS AFFECTION THINK HE'S OBVIOUSLY FLATTERED BUT I THINK HE'S KIND OF EMBARRASSED SAYS A WHITE HOUSE SPOKESWOMAN IT'S KIND OF WEIRD THE ANSWER TO THE QUIZ BY THE WAY IS SECOND 9309130169 930913 AUSTRIA'S OMV SAYS DIVIDEND IS UNLIKELY FORECASTS LOSS FOR YEAR SPECIAL TO THE WALL STREET JOURNAL FRANKFURT AUSTRIA'S OMV AG A MAJOR OIL AND PETROCHEMICALS COMPANY SAID IT IS UNLIKELY TO PROPOSE A DIVIDEND FOR THE YEAR AND PREDICTED AN OPERATING LOSS OF ONE BILLION AUSTRIAN SCHILLINGS 889 MILLION THE COMPANY REPORTED A LOSS ON ORDINARY ACTIVITIES OF 552 MILLION SCHILLINGS FOR THE FIRST HALF SLIGHTLY DOWN FROM A YEAREARLIER LOSS OF 584 MILLION SCHILLINGS ON A 03 IMPROVEMENT IN SALES TO 40 BILLION SCHILLINGS FROM 399 BILLION SCHILLINGS IT NOTED THE SIXMONTH LOSS CAME DESPITE COST SAVINGS OF ONE BILLION SCHILLINGS ANNUALLY A FACT IT SAID DEMONSTRATES THE SEVERITY OF THE ECONOMIC SITUATION OMV POINTED TO A DETERIORATION IN THE ECONOMY DURING THE SECOND QUARTER AND TO DOWNWARD REVISIONS OF THE FORECAST FOR AUSTRIA'S GROSS DOMESTIC PRODUCT WHICH IS NOW EXPECTED TO CONTRACT 08 IN THE FIRST QUARTER OMV SAID ITS PLASTICS DIVISION HAD AN EXTREMELY DIFFICULT TIME AND THAT THE SECOND QUARTER WAS MARKED BY A SHARP DROP IN EARNINGS IN THE PETROCHEMICALS REFINING AND CHEMICALS BUSINESS HOWEVER IT SAID ITS GAS BUSINESS REMAINED STRONG THE COMPANY ALSO SAID A ONETIME CHARGE OF 130 MILLION SCHILLINGS WAS ENTERED INTO ACCOUNTS AS A PROVISION FOR ASSET ADJUSTMENTS IN THE ENERGY SECTOR TO BE MADE IN THE SECOND HALF OMV SAID IT DOESN'T ANTICIPATE IMPROVEMENT IN MARKET CONDITIONS IN THE COMING MONTHS THE GENERAL MONETARY AND ECONOMIC SITUATION TOGETHER WITH PROFITABILITY FACTORS SUCH AS OIL AND GAS PRICES AND MONOMER AND POLYMER REVENUE DO NOT SUGGEST MORE FAVORABLE CONDITIONS ARE ON THE WAY THE COMPANY ALSO SAID IT IS DEVELOPING A RESTRUCTURING PLAN IN ORDER TO COPE WITH MARKET CONDITIONS DETAILS ARE STILL BEING WORKED OUT OMV SAID BUT A PLAN WILL BE PRESENTED TO THE SUPERVISORY BOARD IN THE VERY NEAR FUTURE 9309130168 930913 LEISURE & ARTS THE GALLERY THE ART BEHIND THE ARTIST BY JUDY FAYARD CAEN FRANCE IN MARCEL PROUST'S REMEMBRANCE OF THINGS PAST THE PAINTER ELSTIR PLAYS A PIVOTAL ROLE HE IS PROUST'S SYMBOL FOR ART THE EMBODIMENT OF THE AUTHOR'S AESTHETIC CONVICTIONS A SIGNAL INFLUENCE ON THE CENTRAL CHARACTER OF THE NARRATOR AS WELL AS HIS ALTER EGO LIKE MOST OF THE OTHER CHARACTERS IN REMEMBRANCE ELSTIR IS A COMPOSITE A KALEIDOSCOPIC MONTAGE OF MANY REAL ARTISTS AMONG THEM MONET MANET WHISTLER DEGAS TURNER RENOIR GUSTAVE MOREAU AND FANTINLATOUR PROUST AMUSED HIMSELF BY CONFUSING THE ISSUE BLITHELY MIXING DIVERSE ELEMENTS OF KNOWN PAINTERS AND PAINTINGS INTO HIS DESCRIPTIONS OF ELSTIR AND HIS OEUVRE WITH PROUST AND THE PAINTERFIGURES OF ELSTIR THE BEAUX ARTS MUSEUM HERE ATTEMPTS TO CAPTURE THE ESSENCE OF ELSTIR WITH 18 CAREFULLY CHOSEN MOSTLY CONTEMPORARY PAINTINGS AND DRAWINGS SOME ARE SPECIFICALLY DESCRIBED IN REMEMBRANCE OTHERS ARE REPRESENTATIVE WORKS BY ARTISTS WHO ARE PART OF ELSTIR MOST ARE ASSOCIATED WITH THE NORMANDY COAST WHICH WAS SO IMPORTANT TO THE NOVEL AND TO PROUST HIMSELF IT IS A MODEST SHOW UP THROUGH WEDNESDAY BUT A THOROUGHLY INTELLIGENT OBJECT LESSON IN WHAT A SMALL MUSEUM CAN DO WITH RESEARCH AND IMAGINATION INSTEAD OF CASH AND CLOUT THE CHARM OF UNRAVELING ELSTIR BEGINS WITH HIS NAME PRESUMABLY HIS SURNAME HE DOESN'T SEEM TO HAVE A FIRST NAME AT ALL IS A PARTIAL ANAGRAM OF WHISTLER A PAINTER MUCH ADMIRED BY PROUST AND BY ELSTIR WHEN THE BAY OF BALBEC HAVING LOST ITS MYSTERY HAD BECOME FOR ME JUST AN ANONYMOUS PART INTERCHANGEABLE WITH ANY OTHER OF THE QUANTITIES OF SALTY WATER THERE ARE ON THE GLOBE ELSTIR GAVE IT BACK ITS INDIVIDUALITY BY TELLING ME THAT IT WAS THE OPALESCENT GULF OF WHISTLER WITH ITS HARMONIES OF SILVER AND BLUE VENETIAN RENAISSANCE PAINTING IS IDENTIFIED AS ELSTIR'S EARLIEST INFLUENCE AND SO THE EXHIBIT BEGINS WITH A LARGE VERONESE ASSUMPTION OF THE VIRGIN DENSE AND FULL WITH SWIRLING DRAPERY IN SHADES OF AQUAMARINE AND ROSE IT IS FOLLOWED BY A SMALL CHARDIN STILL LIFE AND THE AFFINITY BETWEEN THE TWO IS STARTLING THE DENSITY THE DRAPED FOLDS OF A NAPKIN THE TONES OF BLUE AND RED ART HISTORY DOESN'T COMPARE THEM SAYS THE MUSEUM CURATOR ALAIN TAPIE BUT PROUST DOES AND VOILA PROUST WENT OFTEN TO SEE THE CHARDINS AT THE LOUVRE AND CREDITS THE 18THCENTURY ARTIST WITH TEACHING US WHAT IS REAL AND BEAUTIFUL IN A HUMBLE DINING ROOM BEFORE SEEING CHARDIN HE WROTE IN AN ESSAY I HAD NOT REALIZED HOW MUCH BEAUTY THERE WAS AT HOME IN A SET TABLE A CORNER OF THE TABLECLOTH TURNED UP A KNIFE AGAINST AN EMPTY OYSTER EACH PICTURE IN THE SHOW HAS ITS OWN STORY ONE LEADING TO THE NEXT LIKE A GAME OF DOMINOS A WATERCOLOR SKETCH FOR HESIOD AND THE MUSE BY MOREAU IS THE MODEL FOR AN ELSTIR SKETCH IN THE COLLECTION OF THE DUCHESS OF GUERMANTES CERTAINLY NOT THE BEST OF ELSTIR NOTES THE NARRATOR PROUST REFERS OFTEN TO MOREAU AND USES HIM TO DESCRIBE THE CHARACTER OF ODETTE IN REMEMBRANCE A SHIMMERING AMALGAM OF UNKNOWN AND DIABOLIC ELEMENTS SET LIKE AN APPARITION OF GUSTAVE MOREAU WITH POISONOUS FLOWERS ENTWINED WITH PRECIOUS STONES MANET'S FAMOUS BUNCH OF ASPARAGUS IS ALSO ATTRIBUTED DIRECTLY TO ELSTIR 20 OR SO GLISTENING WHITE ASPARAGUS WITH VIOLET TIPS BOUND WITH A CORD AGAINST A BLACK BACKGROUND MANET'S ORIGINAL WAS BOUGHT BY THE COLLECTOR CHARLES EPHRUSSI ONE OF THE MODELS FOR PROUST'S CENTRAL CHARACTER CHARLES SWANN IN THE NOVEL SWANN DOESN'T BUY THE PICTURE BUT TRIES TO CONVINCE THE RATHER BOURGEOIS BAZIN TO DO SO AS BAZIN TELLS IT THAT'S ALL THERE WAS IN THE PAINTING A BUNCH OF ASPARAGUS PRECISELY LIKE THE ONES YOU ARE IN THE PROCESS OF SWALLOWING WELL ME I WASN'T ABOUT TO SWALLOW THE ASPARAGUS OF M ELSTIR HE WANTED THREE HUNDRED FRANCS FOR THEM THREE HUNDRED FRANCS FOR A BUNCH OF ASPARAGUS ONE LOUIS THAT'S ALL THAT THEY'RE WORTH EVEN THE EARLY ONES AS THE EXHIBIT'S EXCELLENT CATALOG TELLS THE STORY EPHRUSSI OFFERED MANET MORE THAN THE ASKING PRICE IN RETURN MANET SENT HIM A SECOND PAINTING OF A SINGLE ASPARAGUS WITH A NOTE SAYING YOUR BUNCH IS MISSING ONE MANET ALSO IS IN THE SHOW TO REPRESENT ELSTIR'S JAPANESE PERIOD WITH A RARE SEASCAPE IN MILKY PEARLS AND GRAYS IT IS NEARLY FLAT IN PERSPECTIVE LIKE A JAPANESE WOODCUT AND ODDLY COMPOSED WITH A SAIL IN THE FOREGROUND CUT OFF AT THE BOTTOM EDGE MONET WHO LIKE CHARDIN FOUND BEAUTY IN THE BANAL IS PRESENT WITH MORE OPALINE SILVER AND BLUE IN THE BREAKUP OF ICE IN THE SEINE ONCE OWNED BY EPHRUSSI AND HERE ON LOAN FROM THE MUSEE D'ORSAY IN THE NOVEL IT'S CALLED THAW AT BRISEVILLE AND IS ONE OF ELSTIR'S KEY WORKS IN WHICH THE DAZZLED EYE IS UNCERTAIN IF IT SEES A FLOE OF AZURE ICE OR A RAY OF SUNLIGHT ON THE WATER THE NARRATOR ALSO MENTIONS ELSTIR'S DESOLATION SUNRISE WHICH SEEMS A PLEASANT LITTLE POKE AT MONET'S IMPRESSION SUNRISE THE GLOWING VIEW OF LE HAVRE FROM WHICH THE MOVEMENT TOOK ITS NAME THE EXHIBIT'S BEAUTIFUL RENOIR PORTRAIT OF MADAME PAUL BERARD WHOM PROUST OFTEN VISITED IN DIEPPE COULD EASILY HAVE BEEN PAINTED BY ELSTIR GIVEN THAT ELSTIR SEEMS TO HAVE PAINTED RENOIR'S MADAME CHARPENTIER AND HER CHILDREN AND LA DANSE A LA VILLE LA DANSE A LA CAMPAGNE ELSTIR ALSO MIGHT HAVE PAINTED THE SUPERB DEGAS JOCKEYS BEFORE THE RACE THAT IS THE UNEXPECTED STAR OF THIS SHOW BUT COULD THE SAME ONE MAN HAVE PAINTED THE FEATHERY BOUDIN BEACHES AND PLACID COWS AT PASTURE THE SMOOTH SCARLET AND WHIPPEDCREME WHITENESS OF FANTINLATOUR'S ROSES AND THE SOCIETY PORTRAITS OF PAUL HELLEU AND JACQUESEMILE BLANCHE AS THIS EXHIBIT SHOWS IN 18 WELLTRACED STEPS PROUST'S ELSTIR WAS THE SUM AND SUMMUM OF MODERN PAINTING ITSELF IF PROUST HAD LIVED LONGER ELSTIR WOULD MOST LIKELY HAVE GONE ON TO PAINT GUERNICA MS FAYARD IS A WRITER IN PARIS 9309130167 930913 CANADIAN JOBLESS RATE IS DOWN OTTAWA CANADA'S UNEMPLOYMENT RATE DECLINED TO 113 OF THE WORK FORCE IN AUGUST FROM 116 IN JULY STATISTICS CANADA SAID THE RATE DECLINE RESULTED FROM A 03 DROP IN THE WORK FORCE IN AUGUST 9309130165 930913 THE CLINTON HEALTH PLAN VISITS TO DOCTOR'S OFFICE WILL BE DIFFERENT BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S A FAMILY TO DO YOU HAVE QUIT YOUR JOB AT ENNUI INDUSTRIES AND ARE STARTING OVER AS A SELFEMPLOYED CONSULTANT HOPING THAT YOU STILL CAN FIND FULL HEALTH COVERAGE YOU THINK YOU ARE HEALTHY BUT YOU WANT A CHECKUP YOUR SPOUSE HAS A WEIRD RASH AND WANTS TO SEE THE BEST DERMATOLOGIST IN TOWN YOUR PARENTS CAN'T CARE FOR THEMSELVES ANYMORE YOUR KIDS NEED VACCINATIONS AND YOUR HALFBROTHER BOB JUST HAD A RELAPSE OF HIS CHRONIC ILLNESS MANY OF THESE EVERYDAY MEDICAL SITUATIONS ARE LIKELY TO PLAY OUT DIFFERENTLY IF PRESIDENT CLINTON'S PROPOSED AMERICAN HEALTH SECURITY ACT IS VOTED INTO LAW PARTS OF THE FAMILY PROFILE ABOVE ARE WHIMSICAL BUT THE OBJECTIVE IS SERIOUS TO SHOW HOW THE ADMINISTRATION'S NEW HEALTH PLAN OR ANY OTHER SYSTEM OF COVERAGE WOULD AFFECT PEOPLE'S DAYTODAY CARE IN MOST CASES BASED ON A DRAFT OF THE PLAN THE NEW SYSTEM WOULD LET MORE PEOPLE ENJOY BROADER MEDICAL COVERAGE THERE IS LIKELY TO BE A PRICE THOUGH PEOPLE WILL HAVE TO SURRENDER SOME FREEDOM TO PICK THEIR DOCTORS AND HOSPITALS IF THEY WANT LOWCOST COVERAGE PEOPLE WHO OPT INSTEAD FOR MAXIMUM FREEDOM OF CHOICE ALMOST CERTAINLY WILL PAY EXTRA THE MOST SWEEPING CHANGE UNDER THE CLINTON PLAN AS IT IS CURRENTLY DRAFTED WOULD BE TO PROVIDE UNINTERRUPTED COVERAGE FOR PEOPLE EVEN IF THEY SWITCH JOBS MOVE OR LOSE A JOB THAT NEW PORTABILITY OF HEALTH INSURANCE WILL HAVE CONSIDERABLE POLITICAL APPEAL OBSERVES PRINCETON UNIVERSITY HEALTH ECONOMIST UWE REINHARDT TO MAKE UNINTERRUPTED COVERAGE A REALITY EVERY AMERICAN WOULD GET A NEW NATIONAL HEALTH SECURITY CARD HOLDERS WOULD SHOW THESE CARDS TO NEWLY FORMED REGIONAL HEALTH ALLIANCES WHICH WOULD AMOUNT TO BUYING COOPERATIVES THAT WOULD OFFER MEMBERS A CHOICE OF ACTUAL HEALTHINSURANCE PLANS PEOPLE WHO MOVE TO NEW STATES WOULD USE THESE HEALTH CARDS TO AFFILIATE WITH A NEW ALLIANCE AND HEALTH PLAN PEOPLE WHO SWITCH JOBS WITHIN THE SAME REGION WOULD PROBABLY KEEP THE SAME ALLIANCE AND HEALTH PLAN CARDHOLDERS WOULD NEED TO CHOOSE A HEALTH PLAN BEFORE THEY COULD START SEEING DOCTORS ONE SET OF CHOICES WOULD INVOLVE PREPAID MANAGEDCARE PLANS WITH THEIR OWN NETWORKS OF DOCTORS AND HOSPITALS MUCH LIKE CURRENT HEALTHMAINTENANCE ORGANIZATIONS THERE ALSO WOULD BE A FEEFORSERVICE OPTION WHICH WOULD ALLOW MEMBERS TO USE ANY DOCTOR OR HOSPITAL AND THEN BE REIMBURSED FOR SERVICES ON A CASEBYCASE BASIS WHITE HOUSE AIDES HAVE CONTENDED FOR MONTHS THAT THE HEALTHALLIANCE SYSTEM WON'T TILT IN FAVOR OF EITHER MANAGEDCARE OR FEEFORSERVICE PLANS BUT OUTSIDE EXPERTS EXPECT THE MANAGEDCARE OPTION TO BE CONSIDERABLY CHEAPER FOR MEMBERS AND THUS TO GAIN FAVOR IN THE PAST FEW YEARS CALIFORNIA HAS OFFERED ITS STATE EMPLOYEES A SIMILAR CHOICE BETWEEN CUTPRICE MANAGEDCARE PLANS AND A FEEFORSERVICE PLAN THAT RUNS ABOUT 130 A MONTH EXTRA SOME 60 OF THE STATE EMPLOYEES HAVE OPTED FOR THE MANAGEDCARE PLANS COMPARED WITH ABOUT A 40 ENROLLMENT RATE FOR HMOS IN THE REST OF THE STATE AND ABOUT 20 NATIONWIDE PEOPLE WHO ENTER A MANAGEDCARE NETWORK FOR THE FIRST TIME IN RESPONSE TO ANY INCENTIVES IMBEDDED IN THE CLINTON PLAN ARE LIKELY TO FIND SEVERAL BIG CHANGES IN THEIR MEDICAL TREATMENT FIRST MEMBERS WILL BE DIRECTED TO PICK A REGULAR PRIMARYCARE PHYSICIAN WHO WILL BE THEIR FIRST POINT OF CONTACT WHENEVER CARE IS NEEDED THESE DOCTORS EMPHASIZE PREVENTIVE CARE IN FACT THE CLINTON PLAN CALLS FOR CHOLESTEROL CHECKS EVERY FIVE YEARS FOR ADULTS A HOST OF VACCINATIONS FOR INFANTS PAP SMEARS EVERY THREE YEARS FOR WOMEN AND MAMMOGRAMS EVERY TWO YEARS FOR WOMEN OVER 50 ALL THOSE SERVICES AND ASSOCIATED CHECKUPS EVERY TWO TO THREE YEARS WOULD BE FULLY PAID FOR BY THE HEALTH PLANS AT THE SAME TIME THOUGH IT IS LIKELY THAT PRIMARYCARE DOCTORS WILL TRY TO PREVENT EXCESSIVE USE OF SPECIALISTS SOMEONE WITH A RASH FOR INSTANCE COULDN'T START VISITING DERMATOLOGISTS ON HIS OR HER OWN IN MOST MANAGEDCARE PLANS INSTEAD HE OR SHE WOULD NEED TO SEE THE PRIMARYCARE DOCTOR FIRST WHO WOULD DECIDE WHETHER THE CONDITION WAS EASILY TREATABLE OR REQUIRED A SPECIALIST'S ATTENTION THIS IS GOING TO REQUIRE A DEGREE OF DISCIPLINE THAT PEOPLE AREN'T USED TO SAYS MICHAEL DUKAKIS THE FORMER GOVERNOR OF MASSACHUSETTS WHO RECENTLY HAS BEEN STUDYING HEALTHCARE ISSUES MILLIONS OF AMERICANS MAKE THEIR OWN DIAGNOSES AND THEN GO FROM DOCTOR TO DOCTOR THEY'RE SPOILED IN SOME CASES PEOPLE MAY FIND THAT A VISIT TO THE DOCTOR ACTUALLY BECOMES A VISIT TO THE NURSE THE CLINTON PLAN CALLS FOR DOUBLING THE NUMBER OF NURSES GRADUATING EACH YEAR IN TWO HIGHSKILL AREAS AND SUGGESTS THAT NURSES MAY PLAY A GREATER ROLE IN PROVIDING PRIMARY CARE TO PATIENTS FOR THE ELDERLY AND CHRONICALLY ILL THE CLINTON PLAN ALSO WOULD MEAN SIGNIFICANT CHANGES IN AN EFFORT TO HOLD DOWN COSTS OF THE MEDICARE PROGRAM FOR PEOPLE OVER AGE 65 THE NEW HEALTH BILL OPENS THE DOOR FOR BRINGING MORE MEDICARE MEMBERS INTO MANAGEDCARE GROUPS IT ALSO ENVISIONS A GREATER ROLE FOR HOMEBASED CARE OF THE DISABLED AS AN ALTERNATIVE TO NURSING HOMES FOR PEOPLE UNDER 65 WITH CHRONIC ILLNESSES THE NEW BILL IS A MIXED BAG IT PROVIDES SIGNIFICANT OUTPATIENT BENEFITS FOR MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT BUT ONLY 60 DAYS A YEAR OF INPATIENT TREATMENT IT WILL COVER COSTS OF PEOPLE PARTICIPATING IN GOVERNMENTAPPROVED INVESTIGATIONAL TRIALS OF NEW MEDICINES BUT MAY DRAW THE LINE AT MORE SPECULATIVE TREATMENTS AS PEOPLE TRY TO SORT THEIR WAY THROUGH THE NEW SYSTEM AT LEAST THEY SHOULD HAVE LOTS OF DATA TO HELP THEM THE CLINTON PLAN CALLS FOR STATES AND HEALTH ALLIANCES TO GATHER INFORMATION ON QUALITY OF CARE BY DIFFERENT PLANS AND TO MAKE THAT DATA FREELY AVAILABLE THAT INFORMATION COULD LET CONSUMERS PICK THE HEALTH PLANS THAT FOR EXAMPLE HAD THE HIGHEST VACCINATION RATES THE BEST SURVIVAL RATES AFTER HEART SURGERY OR THE FEWEST COMPLICATIONS ASSOCIATED WITH MATERNAL DELIVERIES THE WORKINGGROUP DRAFT OF THE CLINTON PLAN LEAVES UNCLEAR EXACTLY HOW INFORMATION WILL BE DISSEMINATED BUT DAVID WELTMAN A BOSTON LAWYER WHO FOCUSES ON HEALTH ISSUES SPECULATES THAT BY THE END OF THE DECADE THE NAMES OF THE BEST AND WORSTPERFORMING DOCTORS WILL BECOME A REGULAR FEATURE OF LOCAL TELEVISION STATIONS' EVENING NEWS EVERYONE WILL BE ISSUED A NATIONAL HEALTH CARD THIS WILL ENTITLE YOU TO MEDICAL COVERAGE OFFERED THROUGH YOUR LOCAL HEALTH ALLIANCE YOU WILL BE ENCOURAGED TO PICK A REGULAR PRIMARYCARE DOCTOR WHO WILL BE YOUR FIRST POINT OF CONTACT WHENEVER CARE IS NEEDED IF YOU ARE IN A MANAGEDCARE PROGRAM HIGHPRICED SPECIALISTS WILL BE LARGELY OFF LIMITS UNLESS YOUR PRIMARYCARE PHYSICIAN REFERS YOU TO ONE SHUTTLING FROM SPECIALIST TO SPECIALIST WILL BE DISCOURAGED PREVENTIVE CARE WILL BECOME MORE COMMON HEALTHY PEOPLE WILL GET CHOLESTEROL SCREENINGS PAP TESTS SMOKEENDING CLASSES AND THE LIKE GENERALLY WITH YOUR HEALTH PLAN PICKING UP THE TAB DATA ON DOCTORS' PAST TREATMENT RECORDS WILL BECOME PUBLIC FINDING OUT WHICH PHYSICIANS DO ESPECIALLY WELL OR BADLY MAY BE AS SIMPLE AS CHECKING YOUR LOCAL NEWSPAPER OR TV STATION HIGHLY TRAINED NURSES MAY TAKE OVER SOME OF THE PRIMARYCARE DUTIES NOW PERFORMED BY DOCTORS 9309130164 930913 NATO CHIEF SEEKS TO ADD NEW MEMBERS SECRETARY GENERAL URGES OPENING DOOR TO NATIONS IN EAST CENTRAL EUROPE BY FREDERICK KEMPE STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE HEAD OF NORTH ATLANTIC TREATY ORGANIZATION CALLED UPON THE ALLIANCE TO OPEN UP THE MEMBERSHIP TO FORMER WARSAW PACT COUNTRIES PLACING NEW PRESSURE ON PRESIDENT CLINTON TO RESOLVE CONTINUED ADMINISTRATION DISAGREEMENT ON THE ISSUE NATO ISN'T A CLOSED SHOP SAID SECRETARY GENERAL MANFRED WOERNER IN A SPEECH TO THE ANNUAL MEETING OF THE INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES IN BRUSSELS IN MY VIEW 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 HE SAID THE ALLIANCE'S MAIN GOAL SHOULD BE TO PROJECT STABILITY TO THE EAST AND THAT NATO EXPANSION SHOULD BE ONE OF THE MAJOR SUBJECTS OF THE NATO SUMMIT SCHEDULED FOR JANUARY THE APPEAL GIVEN AT A FORUM THAT HAS BEEN A USUAL STAGE FOR IMPORTANT STRATEGIC POLICY SPEECHES PLACED MR WOERNER ALONGSIDE GERMAN DEFENSE MINISTER VOLKER RUEHE AND US SEN RICHARD LUGAR WHO HAVE THUS FAR LED THE OFFICIAL CAMPAIGN FOR NATO EXPANSION THEY HAVE PARTICULARLY EMPHASIZED OPENING THE DOOR TO THE COUNTRIES OF THE VISEGRAD TRIANGLE POLAND HUNGARY AND THE CZECH REPUBLIC MR WOERNER'S ADDRESS ALSO BUILT ON RUSSIAN LEADER BORIS YELTSIN'S APPARENT GREEN LIGHT THIS MONTH FOR POLISH MEMBERSHIP ISSUED IN A JOINT COMMUNIQUE FOLLOWING HIS SUMMIT WITH PRESIDENT LECH WALESA THE MOVE BY MR WOERNER WAS SIGNIFICANT IN THAT THE DEBATE OVER ALLIANCE EXPANSION IS STILL EMOTIONALLY CHARGED AND UNDECIDED ALTHOUGH HE STRESSED SUCH NEW MEMBERSHIP WOULDN'T BE IMMEDIATE HIS DETERMINATION TO PUT THE ISSUE ON THE SUMMIT AGENDA PUT HIM AHEAD OF SOME US OFFICIALS AND AT ODDS WITH OTHERS AT THE SAME STRATEGIC STUDIES CONFERENCE DEFENSE SECRETARY LES ASPIN IN HIS PUBLIC REMARKS SIDESTEPPED ENTIRELY THE ISSUE OF ALLIANCE EXPANSION DUE TO UNSETTLED ADMINISTRATION DISCUSSIONS AHEAD OF THE SUMMIT IN AUGUST SECRETARY OF STATE WARREN CHRISTOPHER SAID EXPANSION IS NOW NOT ON THE AGENDA ONE US OFFICIAL SAID THE STATE DEPARTMENT IS REVIEWING THAT POSITION WOERNER HAS BEEN MUCH MORE FORWARD LEANING THAN ANYONE IN THE ADMINISTRATION SAID STEPHEN LARRABEE OF RAND CORP WHO JOINTLY AUTHORED A FOREIGN AFFAIRS MAGAZINE PAPER THAT HAS HELPED PUT THE ISSUE ON THE AGENDA ALLIANCE POLICY IS BEING DRIVEN BY EUROPEANS BUT NONE OF THESE ISSUES CAN BE RESOLVED UNLESS CLINTON GETS ENGAGED THE SUMMIT WHICH IS INCREASINGLY BEING CONSIDERED A WATERSHED EVENT BY SECURITY ANALYSTS WILL BE WATCHED CLOSELY BY EUROPEANS TAKING THE MEASURE OF MR CLINTON ON WHAT IS EXPECTED TO BE HIS FIRST TRIP TO EUROPE AS PRESIDENT US OFFICIALS SAID MANY EXPERTS IN THE ADMINISTRATION RESIST TALK OF NATO EXPANSION DUE TO CONCERN OVER HOW RUSSIAN MILITARY LEADERS AND ANTIWESTERN POLITICIANS MIGHT REACT GIVEN THE IMPRESSION THAT FORMER WARSAW PACT COUNTRIES CAN JOIN NATO BUT MOSCOW WOULD BE EXCLUDED DESPITE MR YELTSIN'S JOINT COMMUNIQUE WITH MR WALESA THEY SAY THE RUSSIAN OFFICERS ARE STILL AGAINST POLISH CZECH AND HUNGARIAN MEMBERSHIP AND FEEL BETRAYED BY MR YELTSIN ON THE ISSUE IN HIS SPEECH MR WOERNER STRESSED THAT ANY EXPANSION WOULD BE ENGINEERED SO THAT THE RUSSIANS AND UKRAINIANS ALSO HAVE SOME FORM OF CLOSER TIES TO NATO WE INTEND TO BUILD BRIDGES AND NOT BARRIERS HE SAID NOBODY WILL BE ISOLATED WE SHALL INTENSIFY OUR SECURITY PARTNERSHIP WITH RUSSIA UKRAINE AND OUR OTHER COOPERATION PARTNERS SOME US OFFICIALS ALSO FEAR DILUTING NATO THE ONE INTERNATIONAL SECURITY ORGANIZATION THAT HAS CONTINUED TO WORK EFFICIENTLY BY ADDING MEMBERS THAT COULD CONFUSE ITS MISSION OR DRAG IT INTO PROMISING DEFENSE TO COUNTRIES THAT ARE STILL ECONOMICALLY AND POLITICALLY UNSTABLE OTHERS BELIEVE THE WEST COULD HELP EASTERN EUROPEAN STABILITY FAR MORE BY REDUCING PROTECTIONISM AND OPENING UP MARKETS TO THEIR PRODUCTS ALLIANCE OFFICIALS SAID THE MOST LIKELY CONDITIONS NATO WOULD LIKE TO PLACE ON THE PROSPECTIVE MEMBERS WOULD BE THAT THEY HAVE ALREADY MADE A SUCCESSFUL CONVERSION TO DEMOCRACY HAVE ACHIEVED SUCCESS IN THEIR ECONOMIC REFORMS AND ENJOY PEACEFUL RELATIONS WITH ALL THEIR NEIGHBORS OFFICIALS SAY ONLY THE THREE COUNTRIES OF THE VISEGRAD TRIANGLE ARE CONSIDERED IN A GOOD POSITION TO APPLY THE PRESSURE FROM PRACTICALLY ALL EASTERN EUROPEAN COUNTRIES TO BE CONSIDERED FOR MEMBERSHIP HAS GROWN WITH EACH MONTH OF THE YUGOSLAV CRISIS AT ANOTHER POINT IN HIS SPEECH MR WOERNER REJECTED CRITICISM OF NATO OVER BOSNIA I AM NOT PREPARED TO ACCEPT THE BLAME WHERE WE DON'T HAVE THE RESPONSIBILITY HE SAID HE NOTED THAT NATO ON BEHALF OF THE UNITED NATIONS WAS ENFORCING THE EMBARGO AT SEA AND THE NOFLY ZONE IN THE AIR AND THAT IT WAS SUPPLYING UN PEACEKEEPERS WITH COMMAND AND CONTROL EQUIPMENT AND PROTECTIVE AIR POWER HOWEVER HE EMPHASIZED THAT WHEN NATO FINALLY TOOK THE INITIATIVE TO THREATEN AIR STRIKES TO RELIEVE THE STRANGULATION OF SARAJEVO AND OTHER SAFE AREAS THE FINAL POWER TO AUTHORIZE REMAINED WITH THE UN NATO WASN'T AND ISN'T IN CHARGE HE SAID HE LISTED THE LESSONS LEARNED FROM THE CONFLICT WHICH WAS INTERPRETED BY NATO OFFICIALS AS CRITICISM OF WESTERN LEADERS AND THE UNITED NATIONS ALIKE HE SAID LESSONS INCLUDED THE FINDING THAT POLITICAL AND DIPLOMATIC SOLUTIONS CAN WORK ONLY IF BACKED BY MILITARY POWER AND RESOLVE THAT IF YOU CAN'T HELP THE VICTIM IN THIS CASE THE BOSNIAN MUSLIMS YOU MUST ENABLE HIM TO DEFEND HIMSELF AND THAT THE WEST MUST AVOID SITUATIONS IN WHICH ITS OWN TROOPS BECOME HOSTAGES THE PRECARIOUS LOCATION OF SOME ALLIED TROOPS ON UN MISSIONS AGAINST WHOM THE SERBS COULD TAKE RETRIBUTION HAS BEEN ONE OF THE PRIMARY ARGUMENTS AGAINST TAKING MILITARY ACTION HE SAID THAT WESTERN LEADERS NEED TO RETHINK THEIR OPPOSITION TO LIMITED MILITARY OBJECTIVES TO ACHIEVE LIMITED POLITICAL OR DIPLOMATIC OPTIONS THE PURPOSE OF INTERVENTION ISN'T NECESSARILY TO WIN A WAR BUT TO INFLUENCE THE BEHAVIOR OF THE PARTY CONCERNED HE SAID IT IS WRONG TO THINK ONLY IN CATEGORIES OF ALL OR NOTHING 9309130163 930913 SAFECARD SERVICE BOOSTS BUYBACK CHEYENNE WYO SAFECARD SERVICES INC SAID ITS BOARD OF DIRECTORS HAS INCREASED THE NUMBER OF SHARES TO BE REPURCHASED TO SIX MILLION FROM FOUR MILLION THE CREDITCARD SERVICES COMPANY ALSO EXTENDED THE ENDING DATE OF THE REPURCHASE PROGRAM TO OCT 31 1994 SEPERATELY SAFECARD SAID IT HAS HIRED SALOMON BROTHERS INC A UNIT OF SALOMON INC AS A FINANCIAL ADVISER 9309130162 930913 SYSCO AUTHORIZES STOCK BUYBACK HOUSTON SYSCO CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MUCH AS 10 MILLION SHARES OF COMMON STOCK THE FOOD SERVICE COMPANY SAID THE REPURCHASE PROGRAM IS INTENDED TO OFFSET THE IMPACT OF FUTURE CONVERSIONS OF LIQUID OPTION NOTES AND ANTICIPATED SHARE ISSUANCES CONNECTED TO EMPLOYEE COMPENSATION AND BENEFIT PLANS 9309130161 930913 PEREGRINE INVESTMENTS IS TARGET OF ACTION BY SECURITIES OFFICIALS SPECIAL TO THE WALL STREET JOURNAL HONG KONG SECURITIES REGULATORS CRACKED DOWN ON HIGHFLYING BROKERAGE FIRM PEREGRINE INVESTMENTS HOLDINGS LTD FOR TRADING ACTIVITY WHICH WAS OR WAS LIKELY TO BE PREJUDICIAL TO THE INTERESTS OF THE INVESTING PUBLIC THE SECURITIES AND FUTURES COMMISSION TOOK ACTION AGAINST TWO PEREGRINE ARMS PEREGRINE CAPITAL LTD AND PEREGRINE BROKERAGE LTD ALLEGING MISCONDUCT IN HANDLING SOME NEWSHARE ISSUES UNDER THE SFC'S DIRECTION PEREGRINE BROKERAGE AGREED TO PAY 35 MILLION HONG KONG DOLLARS US452000 INTO A COMPENSATION FUND AS THE SFC HAS NO AUTHORITY TO IMPOSE FINES TWO OFFICIALS OF THE FIRM ALSO WERE CENSURED THE SFC FOUND CONCERNS ABOUT THE CONDUCT OF PEREGRINE BROKERAGE LTD AND TWO OF ITS DIRECTORS IN THE ISSUES AND TRADING OF TERMBRAY INDUSTRIES INTERNATIONAL HOLDINGS LTD HANWAH HOLDINGS LTD SHUN SHING HOLDINGS LTD AND HONG KONG FORTUNE LTD THE SFC SUSPENDED THE DEALING DIRECTOR LICENSE OF THE BROKERAGE'S JIMMY PANG FOR 2 1/2 YEARS FOR ENGAGING IN TRADING ACTIVITY PREJUDICIAL TO THE INTERESTS OF THE INVESTING PUBLIC THE SFC ALSO SAID PEREGRINE BROKERAGE'S CHIEF OPERATING OFFICER AND DIRECTOR PETER WONG SHOULD BE PUBLICLY REPRIMANDED FOR HIS FAILURE TO MANAGE ADEQUATELY AND PROPERLY SUPERVISE THE HANDLING OF CLIENT TRADING ACTIVITIES WITHIN PEREGRINE BROKERAGE IN A RELATED MOVE THE SFC FOUND THAT PEREGRINE CAPITAL THE FIRM'S MERCHANT BANK FAILED IN 1991 TO ENSURE THAT THE PUBLIC LISTINGS OF TERMBRAY INDUSTRIES AND HANWAH HOLDINGS MET HONG KONG STOCK EXCHANGE RULES THAT 25 OF THE CAPITAL IN A FLOATED COMPANY IS PUT IN PUBLIC HANDS THE SFC SAID IT EXPRESSED ITS GRAVE CONCERN TO PEREGRINE CAPITAL LTD THE SPONSOR OF THE ISSUES AS IN THE SFC'S VIEW THE SPONSOR MUST BEAR SOME OF THE RESPONSIBILITY PEREGRINE OFFICIALS WERE UNAVAILABLE TO COMMENT ON THE ACTIONS PEREGRINE INVESTMENTS BASED IN HONG KONG IS A KEY LINK BETWEEN MAINLAND CHINESE INTERESTS AND THE HONG KONG STOCK MARKET 9309130160 930913 THE CLINTON HEALTH PLAN COMMON QUESTIONS ABOUT BENEFITS PERSONAL CONTRIBUTIONS ARE ANSWERED BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HERE ARE ANSWERS TO COMMON QUESTIONS THAT CONSUMERS AND BUSINESSES MAY HAVE ABOUT THE NEW SYSTEM ENVISIONED BY THE DRAFT VERSION OF PRESIDENT CLINTON'S HEALTHCARE PROPOSAL Q WHAT IS IN THE BENEFITS PACKAGE A THE PACKAGE WOULD COVER HOSPITALIZATION EMERGENCY SERVICES DOCTORS' VISITS PREVENTIVE SERVICES INCLUDING PRENATAL CARE CHILDHOOD IMMUNIZATIONS MAMMOGRAMS PAP SMEARS CHOLESTEROL SCREENING AND WELLBABY CARE MENTAL HEALTH SERVICES SUBSTANCE ABUSE TREATMENT FAMILY PLANNING SERVICES HOSPICE CARE HOME HEALTH CARE DENTAL CARE AT FIRST FOR CHILDREN ONLY THEN FOR ADULTS BY THE YEAR 2000 EYE CARE PROSTHETIC AND ORTHODONTIC DEVICES PRESCRIPTION DRUGS AND REHABILITATION SERVICES THERE WOULD BE SOME LIMITATIONS ON THE COVERED SERVICES FOR EXAMPLE THE MENTAL HEALTH BENEFIT WOULD BE LIMITED AT FIRST TO 60 INPATIENT DAYS A YEAR AND 30 PSYCHOTHERAPY VISITS ANNUALLY BY THE YEAR 2000 INPATIENT LIMITS WOULD RISE TO 90 DAYS AND THERE WOULD BE NO PSYCHOTHERAPY CEILING BY THE YEAR 2000 THERE WOULD BE A FEDERAL LONGTERM CARE PROGRAM SUBSIDIZING NURSING HOME AND HOMEBASED AND COMMUNITYBASED CARE FOR THE ELDERLY AND CHRONICALLY ILL Q WHAT WOULD I HAVE TO PAY UNDER THIS NEW SYSTEM A YOUR EMPLOYER WOULD CONTRIBUTE ON YOUR BEHALF AT LEAST 80 OF THE AVERAGE PREMIUM FOR THE STANDARD BENEFITS PACKAGE IN YOUR REGION YOU WOULD PAY THE REMAINDER UNLESS YOUR EMPLOYER DECIDED TO PICK UP THE ENTIRE COST IF YOU CHOSE A PLAN WITH A LOWERTHANAVERAGE PREMIUM YOU WOULD PAY LESS THAN IF YOU CHOSE ONE WITH A HIGHERTHANAVERAGE PREMIUM INDIVIDUALS WOULD ALSO BE ASKED TO PICK UP A PORTION OF MOST DOCTOR AND HOSPITAL BILLS GENERALLY 20 UNDER A TRADITIONAL FEEFORSERVICE PLAN THAT WOULD ALLOW YOU TO GO TO THE DOCTOR OF YOUR CHOICE OR 10 A VISIT IF YOU WERE ENROLLED IN A HEALTH MAINTENANCE ORGANIZATION OR OTHER NETWORK THERE WOULD ALSO BE AN ANNUAL DEDUCTIBLE OF 200 FOR EACH INDIVIDUAL AND 400 FOR EACH FAMILY UNDER THE FEEFORSERVICE PLANS HMOS AND OTHER NETWORKS WOULD GENERALLY HAVE NO DEDUCTIBLES EACH YEAR'S OUTOFPOCKET EXPENSES WOULD BE LIMITED TO 1500 FOR INDIVIDUALS AND 3000 FOR FAMILIES Q WHAT WOULD HAPPEN IF I COULDN'T AFFORD MY PORTION OF THE PREMIUM A THE ADMINISTRATION'S PLAN WOULD OFFER FEDERAL FINANCIAL ASSISTANCE TO LOWINCOME PEOPLE AND TO SMALL BUSINESSES WITH LOW AVERAGE WAGES ALL FAMILIES AND INDIVIDUALS WITH ANNUAL INCOMES BELOW 150 OF THE FEDERAL POVERTY LINE WOULD QUALIFY FOR SUBSIDIES THE AMOUNT OF THE ASSISTANCE WOULD VARY CCORDING TO INCOME EMPLOYERS WITH 50 OR FEWER FULLTIME WORKERS AND AN AVERAGE WAGE OF LESS THAN 12000 WOULD PAY NO MORE THAN 35 OF PAYROLL AS THEIR CONTRIBUTION TOWARD WORKER PREMIUMS THE FEDERAL GOVERNMENT WOULD MAKE UP THE DIFFERENCE THE SCALE OF THE EMPLOYER CONTRIBUTION CAPS RISES WITH A FIRM'S AVERAGE WAGE EMPLOYERS WITH AVERAGE WAGES OF BETWEEN 21000 AND 24000 WOULD PAY NO MORE THAN 65 OF PAYROLL FOR EXAMPLE NO EMPLOYER WOULD HAVE TO PAY MORE THAN 79 OF PAYROLL A DRAFT OF THE PLAN SAYS Q WOULD MY EMPLOYER CONTRIBUTE TO MY HEALTH COVERAGE IF I ONLY WORK PART TIME A EMPLOYERS WOULD HAVE TO CONTRIBUTE TO PARTTIME WORKERS' PREMIUMS BUT THE CONTRIBUTION WOULD BE PRORATED ACCORDING TO THE NUMBER OF HOURS WORKED THE WORKER WOULD BE RESPONSIBLE FOR THE REST OF THE PREMIUM EXCEPT IF QUALIFIED FOR A LOWINCOME SUBSIDY Q HOW DO FAMILIES WITH TWO WORKING SPOUSES AND CHILDREN GET THEIR COVERAGE A THE EMPLOYERS OF BOTH SPOUSES WOULD CONTRIBUTE TO THE FAMILY'S PREMIUM THE CONTRIBUTION WOULD BE BASED ON A FORMULA THAT DEPENDS ON THE AVERAGE NUMBER OF WORKERS PER FAMILY WITHIN A REGIONAL HEALTH ALLIANCE SOME REGIONAL HEALTH ALLIANCES MAY ALLOW SPOUSES TO ENROLL IN SEPARATE HEALTH PLANS Q WHAT IF I'M SELFEMPLOYED A SELFEMPLOYED PEOPLE WOULD PAY BOTH THE EMPLOYEE AND EMPLOYER SHARE OF THE PREMIUM MEANING ALL OF IT BUT THEY COULD TAKE A TAX DEDUCTION ON THE ENTIRE COST THE LAW NOW ALLOWS A 25 DEDUCTION Q WOULD I HAVE TO PAY TAXES ON MY HEALTH BENEFITS A NOT UNLESS YOUR EMPLOYER GAVE YOU BENEFITS NOT IN THE FULLY PHASEDIN FEDERALLY GUARANTEED BENEFITS PACKAGE AND IF YOU WERE RECEIVING BENEFITS AS OF JAN 1 1993 NOT INCLUDED IN THE FEDERAL PACKAGE YOU COULD CONTINUE TO GET THEM TAXFREE FOR 10 YEARS AFTER ENACTMENT OF THE LEGISLATION AN EMPLOYER COULD CONTINUE TO DEDUCT AS A BUSINESS COST ALL HEALTH BENEFITS PROVIDED TO ITS EMPLOYEES REGARDLESS OF WHETHER THEY ARE IN THE FEDERALLY GUARANTEED PACKAGE Q WOULD I BE ABLE TO CHOOSE MY DOCTOR A YOU COULD SELECT ANY DOCTOR IF YOU ENROLLED IN A FEEFORSERVICE INSURANCE PLAN BUT YOU WOULD PROBABLY HAVE TO PAY A HIGHER PREMIUM FOR SUCH COVERAGE THE ADMINISTRATION IS HOPING TO ENCOURAGE PEOPLE TO ENROLL IN HMOS AND OTHER NETWORKS OF DOCTORS AND HOSPITALS WHICH PROVIDE ALL NECESSARY CARE FOR A FLAT ANNUAL PREMIUM AND MINIMAL PATIENT COPAYMENTS MOST PEOPLE WOULD ALSO HAVE THE OPTION OF JOINING A HYBRID PLAN IN WHICH PATIENTS WOULD CHOOSE FROM WITHIN A NETWORK OF DOCTORS BUT HAVE THE OPTION OF GOING OUTSIDE THE NETWORK IF THEY PAID A GREATER SHARE OF THE BILL THE CLINTON PLAN WOULD ACTUALLY EXPAND CHOICE FOR MANY PEOPLE BECAUSE IT WOULD ALLOW THEM TO SELECT THEIR OWN HEALTH PLAN MANY PEOPLE ARE CURRENTLY ENROLLED IN THE PLAN THEIR EMPLOYER HAS CHOSEN TO BUY WITHOUT BEING GIVEN THE OPPORTUNITY TO PICK A DIFFERENT OPTION Q WHICH IS THE BEST PLAN TO CHOOSE A THE REGIONAL HEALTH ALLIANCES WOULD PROVIDE AN ARRAY OF INFORMATION TO ASSIST CONSUMERS IN SELECTING A HEALTH PLAN THEY WOULD PUBLISH INFORMATION ON EACH PLAN INCLUDING ITS PRICE THE NAMES OF PARTICIPATING DOCTORS AND HOSPITALS THE NUMBER OF PEOPLE ENROLLED AND THE NUMBER OF PEOPLE WHO DROPPED OUT DURING THE PREVIOUS YEAR ALLIANCES WOULD ALSO ISSUE ANNUAL QUALITY REPORTS ON EACH PLAN Q WHEN WOULD I BEGIN RECEIVING BENEFITS UNDER THE CLINTON PLAN A IT DEPENDS ON WHERE YOU LIVE ALL STATES WOULD BE REQUIRED TO SET UP THE SYSTEM BY JAN 1 1997 ALTHOUGH SIXMONTH EXTENSIONS MIGHT BE GRANTED TO SOME BUT THE FEDERAL GOVERNMENT WOULD OFFER INCENTIVES TO ENCOURAGE STATES TO START UP EARLIER SOME OF THE BENEFITS SUCH AS ADULT DENTAL CARE WOULDN'T BE AVAILABLE UNTIL THE YEAR 2000 Q WOULD EVERYONE RECEIVE COVERAGE UNDER THE CLINTON PLAN A ILLEGAL ALIENS WOULDN'T BE ENTITLED TO RECEIVE THE STANDARD BENEFITS PACKAGE THROUGH THE ALLIANCE 9309130159 930913 FINANCING BUSINESS PROGRESSIVE CORP PROGRESSIVE CORP MAYFIELD HEIGHTS OHIO FILED A SHELF REGISTRATION STATEMENT FOR AS MUCH AS 150 MILLION OF DEBT SECURITIES THAT THE INSURER MAY ISSUE FROM TIME TO TIME 9309130158 930913 RANGE ROVER STICKER PRICES SET LANHAM MD LAND ROVER NORTH AMERICA INC A UNIT OF BRITAIN'S ROVER GROUP PLC SAID THE BASE PRICE OF ITS NEW CONVERTIBLE DEFENDER 90 SPORTUTILITY VEHICLE WILL BE 27900 THE BASE PRICE OF THE AUTOMOTIVE COMPANY'S 1994 LUXURY RANGE ROVER COUNTY LWB WILL BE 50200 UP 2 FROM THIS YEAR'S INTRODUCTORY PRICE THE BASE RANGE ROVER COUNTY IS PRICED AT 46900 UP 53 9309130157 930913 GOODYEAR JOINT VENTURE IN INDIA AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT FORMED A JOINT VENTURE WITH AN INDIAN COMPANY CEAT LTD TO MAKE TIRES IN INDIA THE VENTURE IN WHICH THE TWO WILL BE EQUAL PARTNERS IS SUBJECT TO APPROVAL BY THE INDIAN GOVERMENT CEAT BASED IN BOMBAY HAS ANNUAL TIRE SALES OF 250 MILLION AND PRODUCES TIRES AT THREE PLANTS GOODYEAR WHICH HAS OPERATED A TIRE PLANT NEAR NEW DELHI FOR 30 YEARS REPORTED REVENUE IN INDIA OF 88 MILLION LAST YEAR 9309130155 930913 INTERNATIONAL SWEDISH EXPORTS ROSE IN 1ST HALF STOCKHOLM SWEDISH EXPORTS ROSE 10 IN VALUE AND 14 IN VOLUME DURING THE FIRST HALF FROM THE YEAREARLIER PERIOD ACCORDING TO FIGURES RELEASED BY SCB THE NATIONAL STATISTICS AGENCY IN THE SECOND QUARTER EXPORT VOLUMES INCREASED 5 FROM A YEAR EARLIER SAID SCB THE CHEMICAL SECTOR SHOWED THE BIGGEST INCREASE UP 22 IN VALUE AND 11 IN VOLUME THE AGENCY SAID A SHARP JUMP FOR PHARMACEUTICAL PRODUCTS WITH VALUES RISING 32 AND VOLUMES UP 19 IS THE PRIMARY REASON FOR THE SECTOR'S GAINS IT SAID 9309130153 930913 MARKETING & MEDIA NEWS CORP TO SELL STAKE IN NEWSPAPER FOR 349 MILLION BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA RUPERT MURDOCH'S NEWS CORP AGREED TO SELL MOST OF ITS STAKE IN THE SOUTH CHINA MORNING POST HONG KONG'S PRINCIPAL ENGLISHLANGUAGE NEWSPAPER TO A MALAYSIAN BUSINESSMAN FOR 349 MILLION DRIVING THE SALE WAS AN ATTRACTIVE OFFER FOR THE STAKE AND A DESIRE TO FOCUS ON DEVELOPING ITS TELEVISION INTERESTS A NEWS CORP OFFICIAL SAID NEWS CORP ALSO SAID IT WOULD USE SOME OF THE PROCEEDS TO RETIRE BANK DEBT ASSUMING CERTAIN REGULATORY CONDITIONS ARE MET KERRY MEDIA LTD WILL BUY 35 OF SOUTH CHINA MORNING POST HOLDINGS LTD LEAVING NEWS CORP WITH 15 NEWS CORP'S STATEMENT DIDN'T IDENTIFY THE OWNERS OF KERRY MEDIA BUT CALLED THE PURCHASER AN ASSOCIATE OF ROBERT KUOK HOCK NIEN'S KERRY GROUP LTD MR KUOK HAD BEEN RUMORED TO BE NEGOTIATING WITH NEWS CORP FOR MORE THAN A WEEK TRADING IN SHARES OF SOUTH CHINA MORNING POST HAVE BEEN SUSPENDED SINCE SEPT 3 WHEN THE STOCK BEGAN CLIMBING ON TALK OF A SALE NEWS CORP PUBLISHES NEWSPAPERS AND MAGAZINES IN AUSTRALIA THE US AND BRITAIN BUT SOME MURDOCH WATCHERS THINK THE SALE OF MOST OF NEWS CORP'S STAKE IN THE SOUTH CHINA MORNING POST INDICATES MR MURDOCH'S INTENTION TO REDUCE HIS NEWSPAPER INTERESTS IN FAVOR OF ELECTRONIC MEDIA IN JULY NEWS CORP SPENT 525 MILLION TO BUY 64 OF STAR TV A SATELLITE BROADCASTER IN HONG KONG THAT ACQUISITION EXPANDED ACROSS ASIA MR MURDOCH'S EXISTING BROADCAST CHAIN WHICH ALREADY ENCOMPASSES THE US AND BRITAIN BESIDES PUBLISHING HONG KONG'S HIGHLY PROFITABLE MAIN DAILY WHICH HAS AN AVERAGE DAILY CIRCULATION OF 100000 SOUTH CHINA MORNING POST ALSO OWNS A CHINESELANGUAGE NEWSPAPER IN HONG KONG AND PART OF A THAI PUBLISHER THE CHANGE OF CONTROL OF THE SOUTH CHINA MORNING POST HAS SPARKED CONCERN AMONG SOME PEOPLE IN HONG KONG THAT THE NEWSPAPER MAY LOSE ITS PROBRITISH STANCE MR KUOK IS WIDELY VIEWED AS SYMPATHETIC TO BEIJING WHICH IS SET TO REGAIN SOVEREIGNTY OVER HONG KONG IN 1997 THE SOUTH CHINA MORNING POST HAS BEEN A BONANZA FOR NEWS CORP MR MURDOCH BOUGHT THE PAPER IN 1986 FOR 22 BILLION HONG KONG DOLLARS US2844 MILLION IN 1990 HE SOLD ABOUT HALF OF IT ON THE STOCK MARKET AND REAPED HK226 BILLION SALLY D GOLL AND CRAIG S SMITH IN HONG KONG CONTRIBUTED TO THIS ARTICLE 9309130152 930913 REVIEW & OUTLOOK EDITORIAL MOGADISHU ROOFTOP REVISITED GENERAL COLIN POWELL WAS ON CAPITOL HILL FRIDAY TESTIFYING THAT WE'VE GOT TO STAY IN SOMALIA FOR THE SAKE OF OUR ABILITY TO PARTICIPATE IN MULTILATERAL ORGANIZATIONS INDEED THE CLINTON ADMINISTRATION SEEMS COMMITTED TO A MULTILATERAL WORLD ORDER OF SUCH UNINSPIRED PEACEKEEPING MISSIONS WE HOPE SOMEONE IS KEEPING A DETAILED LOG OF THE SOMALI EXPERIENCE START WITH THE RECENT STORY ABOUT US RANGERS SUPPOSEDLY ATTACKING SOME HARMLESS UN INSTALLATION IN MOGADISHU IT NOW APPEARS THAT THE RANGERS OF THE US ARMY KNEW EXACTLY WHAT THEY WERE DOING THE HOUSE WAS IN A NEIGHBORHOOD CONTROLLED BY GENERAL AIDID AND PART OF A COMPOUND THAT ACCORDING TO SOLID INTELLIGENCE HAD BEEN USED TO DIRECT MORTAR ATTACKS ON UN MILITARY PERSONNEL HOW COULD THIS HAPPEN THE PROBLEM IS THAT THE UN OPERATIONS THERE ARE INTERLACED WITH MR AIDID'S FACTION HE'S THEIR LANDLORD SUPPLIES THEM WITH SOMALI WORKERS AND HAS EVEN BEEN SHAKING THEM DOWN FOR PROTECTION MONEY NOW LATE LAST WEEK WE HAD THE MEDIA REPORTING THAT US HELICOPTERS MACHINEGUNNED SOMALI WOMEN AND OTHERS WHO'D JOINED A GUERRILLA AMBUSH OF A UN CONVOY WELL THERE IS BY NOW A LONG HISTORY OF THESE SOMALI CIVILIAN AMBUSHES BEING SET TO KILL THE UN'S SOLDIERS WE THOUGHT A UN MILITARY OFFICER HAD IT RIGHT ABOUT THIS ONE IN AN AMBUSH THERE ARE NO SIDELINES NO BLEACHER SEATS ALAS IT'S TRUE THE EUPHEMISM CALLED PEACEKEEPING CAN'T SUSTAIN THE HARSH REALITY THAT THESE COMMITMENTS ARE OFTEN GOING TO BE ABOUT WAR FIGHTING ONCE THAT'S OBVIOUS IT'S SAFE TO PREDICT THAT OUR POTENTIAL PARTNERS IN MULTILATERLISM WILL BECOME EVER MORE SCARCE WHILE THE US WAS TAKING ON GENERAL AIDID'S MILITIA THE OTHER ACTION IN THE SOMALI THEATER WAS A WAR OF WORDS BETWEEN NIGERIAN AND ITALIAN TROOPS SEVEN NIGERIANS WERE KILLED LAST MONTH TRYING TO DISARM A SOMALI CHECKPOINT AND THE NIGERIANS BLAME THE ITALIANS STATIONED UP THE ROAD FOR SITTING ON THEIR HANDS THE ITALIANS TAKE UMBRAGE AT THE SLUR TO THEIR MARTIAL VIGOR BUT THEY DON'T DENY HAVING STRUCK A SEPARATE NONAGGRESSION PACT WITH THE SOMALIS AT THE CHECKPOINT ONE ITALIAN OFFICER SUGGESTED THAT THE NIGERIANS' MISTAKE WAS IN NOT CUTTING THEIR OWN DEAL IN FACT THE ITALIANS WERE ON THEIR WAY HOME UNTIL THE NIGERIAN IMBROGLIO WE NOTICE THAT MANY OF THE PEACEKEEPING CONTINGENTS IN EXYUGOSLAVIA AREN'T EXACTLY POSSESSED OF A KEEN SENSE OF MISSION EITHER THE FRENCH UN COMMANDER IN ZAGREB APPARENTLY HAS HIS HANDS FULL THESE DAYS TRYING TO CURB THE HEROIN AND GASOLINE SMUGGLING OF HIS UKRAINIAN TROOPS THE FRENCH CONTINGENT ITSELF REPORTEDLY DOES BUSINESS IN WINE GOLD AND SELLING ARMORED TAXI SERVICE ACROSS FREEFIRE ZONES ENFILADED BY SERBIAN SNIPERS MEANWHILE MOSCOW CALLED HOME ITS COMMANDER IN CROATIA FOR BEING TOO PARTIAL TO THE LOCAL SERB CRAZIES ON THE WAY OUT THE SERBS GAVE HIM A WHITE MERCEDES AND A FAREWELL BASH WE COULD GO ON BUT THE POINT IS MADE THE UN ISN'T CUT OUT FOR CONDUCTING SERIOUS MILITARY OPERATIONS WHAT TROOPER IS GOING TO RISK HIS LIFE FOR A BUNCH OF STRANGE CHARACTERS HE'S JUST BEEN THROWN TOGETHER WITH ESPECIALLY WHEN HE'S GOT EVERY REASON TO DOUBT THEIR TRAINING DISCIPLINE AND RECIPROCAL DEVOTION NONETHELESS ON FRIDAY A US COMMISSION SET UP BY CONGRESS PROPOSED CREATING A PERMANENT UN FORCE OF UP TO 10000 TROOPS TO TAKE ON THESE JOBS SAID THE COMMISSION'S COCHAIRMAN REP JIM LEACH PEACEKEEPING IS A GROWTH INDUSTRY IT SOUNDS TO US AS IF IT'S TIME FOR SOME FOLKS IN THE CLINTON ADMINISTRATION AND THE US FOREIGNPOLICY COMMUNITY TO GET HOLD OF THEMSELVES HOW IN THE WORLD DID THE ASSUMPTION TAKE HOLD THAT THE UN'S MEMBERS ALL OF A SUDDEN HAVE THE ABILITY OR WILL FOR THIS SORT OF THING THE EVIDENT REALITY OF A SOMALIA IS THAT THE ITALIANS AND THE REST CAN FOLLOW MR BOUTROSGHALI INTO A MESS CHANGE THEIR MINDS RUN UP THE WHITE FLAG AND EVERYBODY JUST CHUCKLES THE WORLD WOULD TREMBLE IF THE US PULLED A STUNT LIKE THAT SO ONLY THE US IS REALLY SUSCEPTIBLE TO BEING QUAGMIRED BY THE UN IT'S ONE THING TO USE THE UNITED NATIONS AS AN ADJUNCT TO SERIOUS US POLICY IT'S ANOTHER TO TURN THE US MILITARY INTO AN APPENDAGE OF THE UN'S SECRETARY GENERAL WHO CAN'T POSSIBLY INSPIRE OR CONTROL THE PEOPLE HE NOMINALLY COMMANDS THE BOTTOM LINE HASN'T CHANGED THE US IS GOING TO BE ON THE FRONT LINE SO IT HAS TO LEAD 9309130151 930913 FORD UAW SEE NEW CONTRACT BEFORE DEADLINE ACCORD LIKELY WILL CONTAIN LOWER STARTING WAGES THREAT OF STRIKE FADES BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WITH LESS THAN TWO DAYS LEFT ON THEIR CURRENT CONTRACT FORD MOTOR CO AND THE UNITED AUTO WORKERS APPEAR TO BE MAKING PROGRESS TOWARD A NEW ACCORD THAT IS LIKELY TO INCLUDE LOWER STARTING WAGES FOR NEWLY HIRED WORKERS UNION OFFICIALS SAID THEY EXPECTED TO REACH AN AGREEMENT BEFORE THE CURRENT CONTRACT EXPIRES AT 1201 AM EASTERN TIME WEDNESDAY AND THEY SAID A STRIKE WAS UNLIKELY NEITHER SIDE CAN AFFORD IT SAID ONE UAW NEGOTIATOR CITING FORD'S MARKETSHARE GAINS THIS YEAR THIS IS THE FIRST TIME IN YEARS THAT WE'VE BEEN KICKING THE BUTTS OF THE JAPANESE CAR MAKERS A COMPANY SPOKESMAN ALSO PREDICTED A CONTRACT WOULD BE SIGNED WITHOUT A STRIKE THERE'S NO REASON TO THINK WE CAN'T FINISH ON TIME HE SAID COMPANY AND UNION OFFICIALS BARGAINED THROUGH MUCH OF THE WEEKEND AND THEY PLAN TO MEET AGAIN TODAY UNTIL LATE TONIGHT MANY OF THE KEY ECONOMIC DETAILS SUCH AS THE SIZE OF PAY INCREASES ARE TYPICALLY NOT SETTLED UNTIL THE LAST MOMENT HOWEVER UNION OFFICIALS EXPECT THE NEW CONTRACT WILL CONTAIN LARGELY THE SAME GENEROUS HEALTHCARE BENEFITS AND GUARANTEED PAY IN THE EVENT OF LAYOFFS AS THE CURRENT CONTRACT CURRENTLY UAW WORKERS START AT 85 OF FULL PAY AND REACH THE FULL RATE OF 1750 AN HOUR IN 18 MONTHS HOWEVER FORD HAS BEEN PUSHING HARD FOR A LOWER STARTING WAGE ARGUING THAT IT WOULD HELP PRESERVE JOBS IN ITS PARTS MAKING OPERATIONS FORD PROPOSED THAT NEW WORKERS START AT 60 OF FULL PAY AND TAKE SIX YEARS TO REACH PARITY UNION OFFICIALS CALLED THIS FAR TOO BIG A CHANGE BUT SAID THEY WOULD ACCEPT A LOWER STARTING WAGE IF THE COMPANY CAN GUARANTEE IT WILL HIRE A CERTAIN NUMBER OF NEW WORKERS AND THEN RETAIN THOSE JOBS AS ONE UNION OFFICIAL POINTED OUT EVEN WITH LOWER STARTING PAY THE WAGE WOULD STILL BE ABOVE OUTSIDE SUPPLIERS' PAY THUS FORD STILL COULD ARGUE LATER THAT ITS OPERATIONS WEREN'T COMPETITIVE BECAUSE OF HIGH LABOR COSTS HE SAID IF FORD AND THE UAW SIGN A CONTRACT BY THE DEADLINE AND IF IT'S PROMPTLY RATIFIED BY THE FORD RANK AND FILE THEN THE UNION COULD START NEGOTIATING WITH EITHER CHRYSLER CORP OR GENERAL MOTORS CORP IN A COUPLE OF WEEKS THE UNION NORMALLY WOULD WAIT TO TACKLE GM LAST BECAUSE OF ITS WEAK FINANCIAL CONDITION AND ITS INSISTENCE ON MAJOR CONCESSIONS THIS YEAR FROM THE UAW THUS THE UAW WOULD PREFER TO DEAL WITH GM AFTER IT HAS ALREADY SIGNED CONTRACTS WITH FORD AND CHRYSLER WHICH PUTS MORE PRESSURE ON GM TO SIGN A SIMILAR AGREEMENT HOWEVER ALL BETS ARE OFF IF CHRYSLER'S CANADIAN OPERATIONS ARE STRUCK BY THE CANADIAN AUTO WORKERS UNION NEXT WEEK CHRYSLER IS THE CONTRACT TARGET THIS YEAR FOR THE CAW WHOSE CONTRACT ALSO EXPIRES AT 1201 AM WEDNESDAY A STRIKE IN CANADA WOULD IDLE MANY OF CHRYSLER'S US OPERATIONS AND THE UAW WOULD HAVE LITTLE LEVERAGE IF IT TRIED TO NEGOTIATE A US CONTRACT AT THE SAME TIME A TOP UNION OFFICIAL SAID THE UNION PROBABLY WOULD TURN TO GM NEXT IN THAT CASE GM IS UNLIKELY TO BE PLEASED BY THE DIRECTION THAT CONTRACT TALKS ARE HEADING AT FORD GM WHICH HAS TO TRIM ANOTHER 60000 TO 70000 HOURLY WORKERS BY THE LATE 1990S ISN'T GOING TO HIRE ANYONE FOR YEARS AND WOULDN'T BENEFIT FROM A LOWER STARTING WAGE SEPARATELY UAW OFFICIALS SAID GM RECEIVED AN OFFER LAST WEEK FOR FIVE PARTSMAKING PLANTS THAT IT PUT UP FOR SALE IN DECEMBER A GM SPOKESMAN REFUSED TO CONFIRM THE OFFER OTHER THAN TO SAY THE FIVE PLANTS WHICH MAKE UP THE FORGE AND FINALDRIVE BUSINESS OF GM'S SAGINAW DIVISION ARE STILL UP FOR SALE THE PLANTS THREE IN MICHIGAN AND TWO IN UPSTATE NEW YORK EMPLOY 7000 WORKERS IF THOSE PLANTS WERE SOLD IMMEDIATELY THE NEW OWNER CONCEIVABLY COULD TRY TO NEGOTIATE WAGE OR BENEFIT CONCESSIONS FROM THE PLANTS' WORKERS AS SOON AS THE CURRENT GM CONTRACT EXPIRES WEDNESDAY MORNING HOWEVER A GM SPOKESMAN SAID THAT ANY SALE IF THERE IS ONE WOULDN'T BE CONSUMMATED UNTIL AFTER GM SIGNS A NEW THREEYEAR CONTRACT WITH THE UAW AND THUS THE WORKERS STILL WOULD BE INCLUDED IN THE NEW THREEYEAR PACT 9309130150 930913 INTERNATIONAL ITALIAN SMALL TRUCK SALES DROP MILAN SALES OF SMALL COMMERCIAL VEHICLES IN ITALY PLUNGED 2973 IN AUGUST FROM A YEAR AGO ACCORDING TO FIGURES RELEASED FRIDAY BY THE NATIONAL ASSOCIATION OF CAR MAKERS ANFIA ANFIA SAID THAT IN THE FIRST EIGHT MONTHS OF 1993 COMMERCIAL VEHICLE SALES WERE DOWN 3003 FROM THE YEARAGO PERIOD ANFIA ALSO REPORTED FIGURES FROM JULY WHICH WERE DELAYED FROM RELEASE BECAUSE OF AUGUST HOLIDAYS IN ITALY IN JULY SMALL TRUCK SALES FELL 3642 FROM THE YEAR EARLIER COMMERCIAL VEHICLES ARE SMALL TRUCKS AND BUSES WITH A WEIGHT OF UP TO 35 METRIC TONS 9309130149 930913 PEANUT CROP EXPECTED TO DECLINE ATLANTA DROUGHT IN THE SOUTHEAST IS SHRINKING THE PEANUT CROP TO ITS LOWEST LEVEL IN A DECADE THE PEANUT ADVISORY BOARD SAID FARMERS ARE PROJECTED TO HARVEST 175 MILLION TONS DOWN 18 FROM LAST YEAR'S CROP THE ATLANTA TRADE GROUP ESTIMATES THAT FARMERS WILL LOSE 171 MILLION IN SALES BECAUSE OF THE SMALLER CROP A LARGE STOCKPILE HOWEVER IS EXPECTED TO CUSHION RETAIL PRICES FOR PEANUTS AND PEANUT BUTTER PEANUTS ARE THE BIGGEST CASH CROP IN GEORGIA AND ALABAMA WHERE THE HARVEST IS BEGINNING 9309130148 930913 MESA AIRLINES'S AUGUST TRAFFIC FARMINGTON NM MESA AIRLINES SAID AUGUST TRAFFIC INCREASED 21 TO 829 MILLION REVENUE PASSENGER MILES FROM A YEAREARLIER 812 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE REGIONAL AIRLINE SAID ITS LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS THAT ARE OCCUPIED SLID FOR AUGUST TO 53 FROM 57 FOR THE FIRST EIGHT MONTHS OF THE YEAR TRAFFIC SURGED 70 TO 6236 MILLION REVENUE PASSENGER MILES FROM 3669 MILLION LOAD FACTOR ROSE TO 501 FROM 495 9309130147 930913 SOUTH KOREA FINDS NATURAL GAS SEOUL SOUTH KOREA'S MINISTRY OF TRADE INDUSTRY AND ENERGY SAID A LAYER OF GOOD QUALITY NATURAL GAS WAS FOUND OFF A SOUTHEASTERN PORT CITY OF THE PENINSULA ACCORDING TO THE MINISTRY THE GAS LAYER WHICH IS ESTIMATED TO HAVE A MAXIMUM RESERVE OF 56 MILLION TONS WAS FOUND ON THE PENINSULA'S CONTINENTAL SHELF 43 KILOMETERS SOUTHEAST FROM ULSAN PORT CITY TOGETHER WITH A RESERVE OF 22 MILLION TONS NEARBY THE FIND IS EXPECTED TO BE COMMERCIALLY VIABLE THE MINISTRY SAID 9309130146 930913 FINANCING BUSINESS COASTAL BANC SAVINGS ASSOCIATION COASTAL BANC SAVINGS ASSOCIATION HOUSTON FILED A REGISTRATION STATEMENT FOR A PROPOSED OFFERING OF 25 MILLION IN PREFERRED STOCK THE DIVIDEND RATE HASN'T BEEN DETERMINED PROCEEDS WILL BE USED FOR FURTHER EXPANSION AND FOR GENERAL CORPORATE PURPOSES COASTAL BANC SAID THE MANAGING UNDERWRITERS WERTHEIM SCHRODER & CO INC PIPER JAFFRAY INC AND RAUSCHER PIERCE REFSNES INC WILL HAVE THE OPTION TO PURCHASE AN ADDITIONAL 150000 SHARES FOR OVERALLOTMENTS IF ANY 9309130145 930913 THE CLINTON HEALTH PLAN SQUEEZE ON COSTS FROM ALL SIDES IS INTENDED TO DEFLATE CHARGES AVOIDING SHIFTS OF PAST BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S PAST ATTEMPTS TO CONTROL HEALTH COSTS HAVE BEEN LIKENED TO SQUEEZING ONE END OF A BALLOON SQUEEZE INPATIENT COSTS AND OUTPATIENT COSTS RISE CLAMP DOWN ON CHARGES FOR GOVERNMENTINSURED PATIENTS AND CHARGES TO PRIVATELY INSURED PATIENTS GO UP PRESIDENT CLINTON'S STRATEGY IS TO SIT ON THE BALLOON TO SQUEEZE OUT SOME OF THE AIR AND HOPE THAT IT DOESN'T POP BESIDES REQUIRING EMPLOYERS TO PROVIDE HEALTH INSURANCE TO THEIR EMPLOYEES THE CLINTON HEALTH PLAN PROPOSES NEW GOVERNMENT SUBSIDIES TO HELP COMPANIES WITH LOWWAGE WORKERS AND LOWINCOME FAMILIES PAY FOR COVERAGE AND TWO MAJOR NEW GOVERNMENT PROGRAMS ONE OF THE NEW PROGRAMS IS FEDERALLY FINANCED CARE AT HOME TO KEEP THE DISABLED AND THE FRAIL ELDERLY OUT OF NURSING HOMES THE OTHER WOULD PROVIDE PRESCRIPTIONDRUG COVERAGE FOR THE ELDERLY WHO ARE COVERED BY MEDICARE ALL THIS WILL TAKE MONEY OF COURSE THESE THREE ELEMENTS OF PLAN WOULD COST ABOUT 320 BILLION OVER THE NEXT SEVEN YEARS ACCORDING TO PRELIMINARY ESTIMATES IN THE DRAFT OF THE PLAN PROVIDED TO MEMBERS OF CONGRESS BUT MR CLINTON FIGURES HE CAN PAY FOR THAT WITH MONEY LEFT OVER TO REDUCE THE FEDERAL DEFICITWHILE AVOIDING ANY MAJOR BROADBASED TAX INCREASES THE ONLY SUBSTANTIAL TAX LISTED IS A 15 BILLIONAYEAR INCREASE IN SIN TAXES WHICH AREN'T SPECIFIED IN THE DOCUMENT AT A WHITE HOUSE BRIEFING YESTERDAY ADMINISTRATION HEALTH OFFICIALS DEFENDED THEIR COST AND SAVINGS ESTIMATES AND FLATLY DENIED REPORTS THAT THEY WERE SEARCHING FOR NEW REVENUE SOURCES THE NUMBERS IN THE PLAN ARE CREDIBLE AND CONSERVATIVE SAID WHITE HOUSE ADVISER IRA MAGAZINER WHO IS OVERSEEING THE HEALTHCARE EFFORT WE STAND FIRMLY BEHIND THEM HE ADDED THOUGH HE CAUTIONED THAT SOME FIGURES COULD CHANGE SLIGHTLY BEFORE MR CLINTON FORMALLY UNVEILS THE PLAN WHAT'S MR CLINTON'S SECRET IT'S TO SQUEEZE THE WASTE AND INEFFICIENCIES OUT OF THE AMERICAN HEALTHCARE SYSTEM AND USE THAT MONEY TO FINANCE EXPANDED BENEFITS AN APPROACH LONG ADVOCATED BY MR MAGAZINER IF SAVINGS ATTAINED THROUGH EFFECTIVE COMPETITION AND REDUCTIONS IN ADMINISTRATIVE COSTS DON'T ACHIEVE THE SPENDING GOALS THE DOCUMENT SAYS THEN MR CLINTON'S STRINGENT CEILINGS ON GOVERNMENT AND PRIVATE HEALTHCARE SPENDING WILL THE DOCUMENT INDICATES THAT FEDERAL SPENDING ON MEDICARE FOR INSTANCE IS PROJECTED TO BE ABOUT 10 LOWER IN THE YEAR 2000 THAN THE CONGRESSIONAL BUDGET OFFICE PROJECTS EVEN WITH THE NEW PRESCRIPTIONDRUG BENEFIT WHAT ISN'T ENTIRELY CLEAR HOWEVER IS WHAT HAPPENS IF THE NEW BENEFITS TURN OUT TO COST A LOT MORE THAN ANTICIPATED OR IF THE SAVINGS PROVE ELUSIVE THE DOCUMENT OUTLINES ALL SORTS OF CONTROLS THAT COULD BE IMPOSED TO KEEP HEALTHCARE SPENDING IN LINE BUT IT DOESN'T SPECULATE ON THE POLITICAL OR ECONOMIC CONSEQUENCES IF THE COMPLEX 1 TRILLION AMERICAN HEALTHCARE SYSTEM DOESN'T BEHAVE AS EXPECTED THAT IS IF THE NEWLY GUARANTEED HEALTH BENEFITS CANNOT BE DELIVERED FOR THE SUMS PROVIDED IF ACCEPTED BY CONGRESS AND THAT'S A BIG IF THE CLINTON HEALTH PLAN WOULD BE AN ECONOMIC EXPERIMENT OF UNPARALLELED DIMENSIONS BASED ON THE LIMITED INFORMATION AVAILABLE IT'S DIFFICULT TO GAUGE THE IMPACT ON THE ECONOMY CONSIDER THE STRAIGHTFORWARD QUESTION OF WHETHER THE PLAN WOULD CREATE OR DESTROY JOBS FORCING ALL EMPLOYERS TO PROVIDE AND LARGELY PAY FOR HEALTH INSURANCE FOR THEIR WORKERS WILL UNDOUBTEDLY DISCOURAGE HIRING PARTICULARLY OF LOWWAGE WORKERS BUT THE PROJECTED INCREASE YES INCREASE IN TOTAL SPENDING ON HEALTH IN THE NEXT FEW YEARS COULD PRODUCE AN OFFSETTING INCREASE IN EMPLOYMENT IN THE HEALTH INDUSTRY THE WHITE HOUSE DOCUMENT PROJECTS THAT TOTAL PRIVATE AND PUBLIC SPENDING ON HEALTH CARE WOULD BE HIGHER THAN IT WOULD OTHERWISE BE EACH OF THE NEXT FOUR YEARS BUT WOULD BE LOWER IN SUBSEQUENT YEARS A SET OF TABLES APPENDED TO THE DRAFT GIVES SOME INFORMATION ON HOW THE WHITE HOUSE FIGURES THE PLAN WILL AFFECT THE FEDERAL BUDGET THERE ARE HINTS THOUGH THAT THE FIGURES IN THE DOCUMENT DATED SEPT 6 HADN'T BEEN VETTED BY BUDGET AND TAX ANALYSTS IN THE WHITE HOUSE BUDGET OFFICE OR THE TREASURY FOOTNOTES DESCRIBE THE COST ESTIMATES AS PRELIMINARY AND ONE MAJOR TAX COMPONENT IS FURTHER LABELED AS UNOFFICIAL AN INDICATION THAT IT DIDN'T COME FROM THE TREASURY ECONOMISTS WHO GENERALLY MAKE SUCH ANALYSES MANY OF THE NUMBERS COULD CHANGE BEFORE THE PLAN IS FORMALLY RELEASED TO MAKE THE NUMBERS WORK THE TAX INCREASES COME FIRST A POINT SURE TO BE NOTED BY REPUBLICANS THE INCREASED SIN TAXES WHICH OFFICIALS SAY ARE LIKELY TO BE LEVIED ON CIGARETTES AND POSSIBLY ALCOHOLIC BEVERAGES ARE ASSUMED TO KICK IN BY JANUARY 1994 EVEN THOUGH THE NEW HEALTH BENEFITS ARE TO BE PHASED IN OVER THE NEXT SEVERAL YEARS WITHOUT THIS MANEUVER THE PLAN WOULDN'T PAY FOR ITSELF OVER THE NEXT FIVE YEARS AND WOULD VIOLATE THE DEFICITREDUCTION LAW MR CLINTON JUST SIGNED IF THE 15 BILLIONAYEAR IN SIN TAXES AREN'T APPROVED THE PLAN WOULD CAUSE THE FEDERAL DEFICIT TO GROW SLIGHTLY RATHER THAN SHRINK IN THE NEXT FIVE YEARS BUT THESE TAXES ARE A SMALL PART OF THE OVERALL FINANCING SCHEME OVER THE SIX FISCAL YEARS FROM 1994 WHICH BEGINS THIS OCT 1 TO 2000 THE CLINTON PLAN PROPOSES AN ADDITIONAL 350 BILLION IN FEDERAL SPENDING OR TAX BREAKS INCLUDING THE SUBSIDIES TO LOWWAGE WORKERS THE COST OF THE NEW MEDICARE BENEFITS AND THE 2 BILLIONAYEAR COST OF ADMINISTERING THE NEW SYSTEM OVER THE SAME YEARS HOWEVER THE PLAN ENVISIONS CUTTING 285 BILLION FROM PROJECTED INCREASES IN SPENDING ON MEDICAID AND MEDICARE AS WELL AS PENTAGON VETERANS' AND FEDERAL EMPLOYEES' HEALTH BENEFITS PRIMARILY FROM SQUEEZING OUT INEFFICIENCIES IT ANTICIPATES COLLECTING 51 BILLION MORE IN TAXES BECAUSE COMPANIES WILL HAVE SMALLER HEALTHCARE EXPENSES TO DEDUCT ON THEIR TAX RETURNS AS WELL AS 105 BILLION FROM THE SIN TAXES A CATEGORY THAT ALSO APPEARS TO INCLUDE REVENUE FROM A 1 LEVY ON THE PAYROLLS OF BIG COMPANIES THAT DECIDE TO MAINTAIN THEIR OWN HEALTH PLANS RATHER THAN JOINING THE NEW HEALTH ALLIANCES THE NET REDUCTION IN THE DEFICIT WOULD BE 91 BILLION OVER THE SIX YEARS THE MAGNITUDE OF THE PROJECTED SAVINGS FROM MEDICARE 124 BILLION OVER THE SIX YEARS AND MEDICAID 114 BILLION IS STARTLING BOTH ECONOMICALLY AND POLITICALLY IT IS WIDELY ACKNOWLEDGED THAT MEDICARE AND MEDICAID PAY HOSPITALS AND DOCTORS LESS THAN IT COSTS TO PROVIDE CARE EMPLOYERS AND WORKERS PICK UP THE DIFFERENCE PAYING MORE THAN IT ACTUALLY COSTS TO PROVIDE CARE SQUEEZING MEDICARE AND MEDICAID HARDER WOULD ENCOURAGE MORE SHIFTING OF COSTS TO THE PRIVATE SECTOR SQUEEZING THE PRIVATE SECTOR SIMULTANEOUSLY IS SUPPOSED TO STOP THAT FROM OCCURRING IT'S A NEAT TRICKPROVIDED THE BALLOON DOESN'T POP CONGRESS IS BOUND TO HAVE RESERVATIONS ABOUT TAKING SO MUCH MONEY OUT OF MEDICARE AND MEDICAID DURING THE RECENT DEFICITREDUCTION DEBATE ADMITTEDLY A DIFFERENT CONTEXT LIBERALS ARGUED THAT TRYING TO GET ANOTHER 6 BILLION OR 8 BILLION OUT OF MEDICARE OVER FIVE YEARS WOULD BE DEVASTATING IF CONGRESS BALKS AT THE SPENDING RESTRAINTS IT WILL HAVE TO CURTAIL THE BENEFITS PROVIDED OR TURN TO NEW TAXES IN EITHER CASE THE WHITE HOUSE CAN BLAME CONGRESS FOR THE BAD NEWS BORROWING AN APPROACH PUSHED BY PRESIDENT BUSH'S BUDGET DIRECTOR RICHARD DARMAN THE PLAN WOULD SET LEGAL CEILINGS ON HOW MUCH MONEY COULD BE SPENT ON MEDICAID AND MEDICARE AMONG OTHER THINGS SUCH CEILINGS MAKE IT MORE LIKELY THAT THE INFLUENTIAL CONGRESSIONAL BUDGET OFFICE WILL ATTEST THAT MR CLINTON'S NUMBERS ADD UP ONE OF THE WHITE HOUSE'S GOALS THE CBO HASN'T HOWEVER EVALUATED THE NUMBERS AND IS UNLIKELY TO OFFER MR CLINTON AN UNQUALIFIED ENDORSEMENT THE SAVINGS FROM MEDICAID THE JOINT FEDERALSTATE PROGRAM THAT INSURES THE POOR APPEAR TO RESULT FROM A FIAT THE NEW REGIONAL HEALTH ALLIANCES WILL COVER MEDICAID BENEFICIARIES BUT WILL BE PAID ONLY 95 OF WHAT THE STATE IN QUESTION SPENT PER CAPITA IN THE YEAR PRIOR TO IMPLEMENTATION OF REFORM WITH ANNUAL RATES OF INCREASE SUBJECT TO THE NATIONAL HEALTH CARE BUDGET THE DRAFT DOES HOWEVER LIST 23 SPECIFIC CHANGES DESIGNED TO REDUCE PROJECTED MEDICARE SPENDING SO THAT IT COMES IN BELOW THE PLAN'S NEW SPENDING CAPS MR CLINTON WOULD MAKE INDIVIDUALS WITH INCOMES ABOVE 100000 AND COUPLES WITH INCOMES ABOVE 125000 PAY MORE FOR THEIR MEDICARE BUT THE DRAFT DOESN'T SAY HOW MUCH MORE HE ALSO WOULD MAKE BENEFICIARIES PAY 20 OF THEIR CLINICAL LAB BILLS WHICH ARE NOW FULLY COVERED AND MAKE THEM PAY 10 FOR HOME HEALTH VISITS MADE MORE THAN 20 DAYS AFTER A HOSPITAL DISCHARGE BUT THE BULK OF THE SAVINGS ARE TO COME FROM ALTERING MEDICARE FORMULAS SO THAT HOSPITALS AND MANY DOCTORS GET PAID LESS THAN THEY OTHERWISE WOULD HAVE RECEIVED 9309130144 930913 HEARD ON THE STREET SOME QUESTION IF COKE FEMSA IS REAL THING BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CHEAP STOCKS LITTLEKNOWN COMPANIES AMAZING GROWTH RATES SO GOES THE HYPE ABOUT EMERGING MARKETS BUT IN FACT MANY OF THESE FOREIGN MARKETS ARE LOADED WITH OVERVALUED STOCKS OF COMPANIES WITH MATURING BUSINESS LINES COULD THAT DESCRIBE COCACOLA FEMSA SA A MEXICAN COMPANY NOW PREPARING TO OFFER A 20 STAKE TO THE PUBLIC INCLUDING US INVESTORS COKE FEMSA AS INVESTORS ARE CALLING THE NEW COMPANY IS ONE OF THE LARGEST COCACOLA BOTTLING FRANCHISES IN THE WORLD IT SERVES MEXICO CITY AND AREAS SOUTH WHERE SOME 24 MILLION PEOPLE SLUGGED DOWN 2217 MILLION CASES OF COCACOLA CO'S SOFT DRINKS LAST YEAR IN MEXICO EVERY MAN WOMAN AND CHILD DRINKS ABOUT 300 EIGHTOUNCE SERVINGS OF COCACOLA PRODUCTS ANNUALLY ANALYSTS ESTIMATE SO MUCH FOR THE THEORY THAT LESS DEVELOPED COUNTRIES ARE AWASH IN CONSUMERS JUST WAITING TO GET A CHANCE TO CONSUME THE ALREADY HIGH LEVEL OF MEXICAN CONSUMPTION NEARLY EQUAL TO US CONSUMPTION HAS INVESTORS WONDERING WHERE ADDITIONAL GROWTH CAN COME FROM BEAR STEARNS COS WILL UNDERWRITE THE GLOBAL DEAL WITH AN OFFERING OF 4922700 AMERICAN DEPOSITARY SHARES IN THE US AND 1640900 IN EUROPE IN THE NEXT FEW DAYS THE ADS UNIT IS EXPECTED TO BE PRICED SOMEWHERE BETWEEN 17 AND 19 PERHAPS HIGHER EACH ADS REPRESENTS 10 SERIES L COMMON SHARES AND THE ADS UNITS WILL TRADE ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL KOF SOME 164 MILLION INDIVIDUAL SERIES L SHARES WILL BE OFFERED HERE TO MEXICAN INVESTORS ALSO COKE FEMSA IS A SPLITOFF DESIGNED TO GIVE INVESTORS A PURE PLAY ON THE COLA BOTTLING BUSINESS OF FOMENTOS ECONOMICO MEXICANO SA FAMILIARLY KNOWN AS FEMSA BESIDES SOFT DRINKS FEMSA HAS PACKAGING AND CONVENIENCESTORE BUSINESSES BUT IT IS PERHAPS BEST KNOWN AS A BREWERY PRODUCING SUCH MEXICAN BEERS AS TECATE AND BOHEMIA FEMSA'S SHARES ARE ALREADY PUBLICLY LISTED AND ARE TRADED ON THE MEXICAN BOLSA AT AROUND 125 TIMES THE ESTIMATED 1994 EARNINGS OR AT A SLIGHT PREMIUM TO THE MEXICAN STOCK MARKET FEMSA RESTRUCTURED ITS SOFTDRINK UNIT IN MAY WIPING OUT ALL LONGTERM DEBT WITH THE HELP OF A 200 MILLION CASH INFUSION THE MEXICAN BOTTLER FEMSA WILL MAINTAIN A 51 STAKE IN THE NEW COMPANY'S CAPITAL STOCK AND HOLD 63 OF ALL VOTING RIGHTS ATLANTABASED COCACOLA CO BOUGHT A 30 STAKE IN THE NEW COMPANY IN JUNE FOR 195 MILLION OR 137 A SHARE THOUGH THE US SOFTDRINK GIANT DOESN'T HAVE MAJORITY VOTING RIGHTS IT WILL HAVE A WEIGHTY INFLUENCE OVER COKE FEMSA'S MARKETING PLANS NOW LESS THAN THREE MONTHS LATER INVESTORS ARE BEING ASKED TO PAY THE EQUIVALENT OF 170 TO 190 APIECE FOR SERIES L SHARES THAT HAVE LIMITED VOTING RIGHTS I DON'T LIKE PAYING 190 WHEN COKE ONLY PAID 137 SAYS C THOMAS TULL PRINCIPAL AT GULFSTREAM GLOBAL INVESTORS LTD IN DALLAS HIS EARNINGS MODEL SHOWS THAT AT AN OFFERING PRICE OF 17 TO 19 COKE FEMSA COULD BE OWNED FOR ABOUT 12 TO 135 TIMES 1994 ESTIMATED EARNINGS THIS SEEMINGLY REASONABLE VALUATION SHOULD MAKE THE DEAL AN EASY SELL FOR BEAR STEARNS YET SOME EXPERIENCED INVESTORS IN LATIN AMERICAN STOCKS SUCH AS JEAN VAN DE WALLE PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT WONDER HOW COKE FEMSA WILL GENERATE FUTURE GROWTH BOTTLERS ARE MATURE BUSINESSES IN LATIN AMERICA AND THE MEXICO CITY MARKET IS AS COMPETITIVE AS THEY COME STOCKBROKERS SAY RISING MEXICAN PURCHASING POWER AND PROMOTION WILL GENERATE EVEN MORE CONSUMPTION THAT'S A STRETCH SOFT DRINKS HERE ARE MORE OF A FOOD SOURCE THAN A LUXURY ITEM CONSUMPTION IS ALREADY BRISK MR VAN DE WALLE THINKS COKE FEMSA'S EARNINGS WILL GROW AT A 13 TO 15 ANNUAL RATE THIS YEAR AND NEXT BUT HE'S CONCERNED THAT GROWTH COULD TAIL OFF IN 1995 SALES VOLUME IS ALREADY HIGH IN MEXICO SAYS SORAYA BETTERTON MANAGER OF THE GT LATIN AMERICA GROWTH FUND WE THINK THE COMPANY WILL BE A MODERATE GROWER BUT BULLS ON THE ISSUE THINK THE COCACOLA ALLIANCE WILL HELP THE NEW COKE FEMSA UNIT PLAY A MORE STRATEGIC GAME IN MEXICO PERCAPITA CONSUMPTION IS PROBABLY NOT GOING TO INCREASE IN MEXICO CITY SAYS CARRIE SCHLOSS COMANAGER OF THE KEMPER INTERNATIONAL FUND BUT SHE THINKS COKE FEMSA CAN GAIN MARKET SHARE IN THE FLAVORED SOFTDRINK SEGMENT ALSO SHE EXPECTS DEMAND FOR ALL SOFT DRINKS TO STRENGTHEN IN SOUTHEASTERN MEXICO A FEMSA MARKET SINCE COKE FEMSA HASN'T ANY LONGTERM DEBT SOFTDRINK PRICE INCREASES COULD DELIVER A BIG BOOST TO THE BOTTOM LINE A 12OUNCE UNIT COSTS ABOUT 19 CENTS HERE NOT INCLUDING DEPOSIT COMPARED WITH ABOUT 50 CENTS IN THE US PRICE INCREASES ARE RISKY THOUGH OUR WORRY IS THAT IF THEY ATTEMPTED TO INCREASE PRICES THERE WOULD BE A DROPOFF IN DEMAND SAYS MS BETTERTON REALISTICALLY YOU ARE PROBABLY LOOKING AT NO PRICE INCREASES IN REAL TERMS SO INVESTORS HAVE TO COUNT ON VOLUME GAINS AND THERE'S ALWAYS THE THREAT OF PRICE CUTS PEPSI BOTTLER GRUPO EMBOTELLADOR DE MEXICO ISN'T EXPECTED TO SIT BACK AND WATCH COKE FEMSA MAKE A GRAB FOR AN EVEN GREATER SHARE OF THE SECOND LARGEST SOFTDRINK MARKET IN THE WORLD THE REAL BET INVESTORS ARE MAKING IN THIS ISSUE IS THAT COCACOLA CO HAS AN INTEREST IN GETTING A HIGH RETURN ON ITS INVESTMENT THE COLA GIANT HAS THE FINAL WORD ON WHAT HAPPENS TO THE 17 OTHER COKE FRANCHISES IN MEXICO COKE FEMSA HAS REACHED CERTAIN AGREEMENTS WITH COCACOLA CO ABOUT POSSIBLE PURCHASES THE PROSPECTUS SAYS SOME INVESTORS EVEN THINK THAT CENTRAL AND SOUTH AMERICAN FRANCHISES COULD END UP WITH COKE FEMSA CASTING A CLOUD OVER SUCH SPECULATION IS THE FACT THAT COCACOLA CO'S BIG FRANCHISE COMPANY IN THOSE MARKETS PAN AMERICAN BEVERAGES IS ALSO GOING PUBLIC LAZARD FRERES IS LEADING THE OFFERING COCACOLA CO HAS A 10 STAKE IN PAN AMERICAN MR VAN DE WALLE OF ALLIANCE SAYS COKE FEMSA IS A HIGHQUALITY MEXICAN BLUE CHIP YOU HAVE TO ASSUME COCACOLA CO WILL HAVE AN ACTIVE MANAGEMENT ROLE HIS ADVICE BUY THE MEXICAN STOCK AND WATCH THE ATLANTA COMPANY'S STEPS FOR THE NEXT TWO YEARS IF THERE'S NO FRANCHISE EXPANSION AT COKE FEMSA TURN THE STOCK IN AND COLLECT YOUR DEPOSIT SOMETIME IN 1995 CHINA MYSTIQUE INVESTORS POURED NEARLY 260 MILLION INTO LAST WEEK'S HOT INITIAL PUBLIC OFFERING OF TEMPLETON CHINA WORLD FUND WHOSE SHARES CAME PUBLIC AT 15 AND ENDED THE WEEK ALSO AT 15 ON THE BIG BOARD UNDER THE SYMBOL TCH THE CLOSEDEND FUND OFFERING REAPED MORE THAN FOUR TIMES THE MONEY UNDERWRITERS HAD AIMED FOR IN THEIR PRELIMINARY PROSPECTUS AND IT COMES DURING A DROUGHT FOR ONECOUNTRY STOCK FUNDS THERE HASN'T BEEN A COUNTRY STOCKFUND OFFERING IN NEARLY A YEAR ACCORDING TO LIPPER ANALYTICAL SERVICES THE FUND RUN BY ACCLAIMED TEMPLETON EMERGING MARKET STOCK PICKER J MARK MOBIUS WILL INVEST AT LEAST 65 OF ITS ASSETS IN COMPANIES IN CHINA HONG KONG OR TAIWAN AND AS MUCH AS 35 IN COMPANIES ELSEWHERE THAT ARE EXPECTED TO BENEFIT FROM THE GROWTH OF THE CHINESE ECONOMY TEMPLETON EMERGING MARKETS FUND ANOTHER FUND RUN BY MR MOBIUS HAS TURNED IN A WINNING RECORD AND DEMAND FOR THE SHARES IS SO GREAT THAT IT SELLS FOR A 26 PREMIUM TO THE VALUE OF THE STOCKS IN ITS PORTFOLIO THREE OTHER CHINA FUNDS ALL OF WHICH WENT PUBLIC LAST YEAR ALSO SELL AT PREMIUMS BUT IT ALMOST ALWAYS PAYS TO WAIT A BIT RATHER THAN BUYING A CLOSEDEND FUND ON ITS INITIAL PUBLIC OFFERING SAYS CATHERINE GILLIS EDITOR OF THE CHICAGOBASED NEWSLETTER MORNINGSTAR CLOSEDEND FUNDS IN FACT THE STOCK MARKETS IN THE CHINA REGION HAVE BEEN COOLING OFF LATELY THE THREE CHINA FUNDS AND THE TWO TAIWANESE FUNDS HAVE LOST 1 TO NEARLY 8 OF THE VALUE OF THEIR PORTFOLIOS IN THE THREE MONTHS THROUGH AUG 31 THAT DECLINE HASN'T BEEN REFLECTED YET IN THE FUNDS' SHARE PRICES MS GILLIS SAYS IF IT DOES SHAREHOLDERS WILL LOSE MONEY THE NEW CHINA FUND'S SHARES SEEM ATTRACTIVE MS GILLIS SAYS GIVEN THE GOLDEN TOUCH OF MR MOBIUS BUT SHE ADVOCATES WAITING A BIT BEFORE BUYING MARK MOBIUS MAY BE A GENIUS BUT HE CAN'T STOP A MARKET FROM COOLING OFF ROBERT MCGOUGH IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9309130143 930913 TREASURY PLANS TO RAISE 350 MILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 350 MILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1525 BILLION OF 52WEEK BILLS TO REDEEM 1489 BILLION IN MATURING BILLS THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL BE DATED SEPT 23 AND WILL MATURE SEPT 22 1994 THE CUSIP NUMBER FOR THE BILLS IS 912794L77 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT THURSDAY 9309130142 930913 SPAIN'S TOURISM FIGURES IMPROVE MADRID NET INCOME FROM TOURISM ROSE 52 IN THE FIRST FIVE MONTHS TO 589 BILLION PESETAS 455 BILLION FROM 560 BILLION PESETAS IN THE YEAREARLIER PERIOD SPAIN'S INDUSTRY TRADE AND TOURISM MINISTRY SAID GROSS TOURISM INCOME FOR THE FIRST FIVE MONTHS ROSE 96 TO 803 BILLION PESETAS FROM 733 BILLION PESETAS IN MAY ALONE 188 BILLION PESETAS IN GROSS INCOME WAS EARNED ON TOURISM UP 68 FROM THE YEAREARLIER PERIOD'S 176 BILLION PESETAS THE MINISTRY SAID THAT IN THE FIRST SEVEN MONTHS OF THE YEAR THE NUMBER OF VISITORS TO SPAIN ROSE 26 TO 299 MILLION TOURISTS FROM A YEAREARLIER 291 MILLION 9309130141 930913 WHO'S NEWS GERRITY OIL & GAS CORP GERRITY OIL & GAS CORP DENVER LES J LIEBERMAN 38 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OIL COMPANY MR LIEBERMAN IS CHIEF EXECUTIVE OF INDOSUEZ CAPITAL THE MERCHANT AND INVESTMENT BANKING DIVISION OF BANQUE INDOSUEZ HE TAKES THE BOARD SEAT VACATED BY FRANK D BRACKEN 29 MR BRACKEN ALSO RESIGNED AS CHIEF FINANCIAL OFFICER A COMPANY SPOKESMAN SAID THE JOB RESPONSIBILITIES WOULD BE ABSORBED BY OTHER EXECUTIVES 9309130140 930913 WHO'S NEWS AMERICAN GENERAL CORP AMERICAN GENERAL CORP HOUSTON ROBERT S CAUTHEN JR WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERICAN GENERAL LIFE INSURANCE CO A UNIT OF THIS FINANCIAL SERVICES CONCERN MR CAUTHEN 48 YEARS OLD SUCCEEDS ROBERT M DEVLIN WHO LAST WEEK WAS ELECTED VICE CHAIRMAN AND DIRECTOR OF THE PARENT COMPANY MR CAUTHEN HAS SERVED AS THE INSURANCE UNIT'S SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER SINCE 1991 9309130139 930913 WHO'S NEWS MHI GROUP INC MHI GROUP INC TALLAHASSEE FLA DAVID J MCLAURIN 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FUNERALSERVICES COMPANY HE HAD BEEN VICE PRESIDENT MARKETING AND OPERATIONS MR MCLAURIN SUCCEEDS ROBERT J SERRES 56 WHO RESIGNED TO PURSUE OTHER OPPORTUNITIES MHI SAID FRED O DRAKE JR THE COMPANY'S 66YEAROLD CHAIRMAN SAID IT WAS MR SERRES'S DECISION TO LEAVE CALLING THE DEPARTURE FRIENDLY MR DRAKE SAID MR SERRES WILL BE ADVISING WITH US ON SOME ACQUISITIONS MR SERRES COULDN'T BE REACHED 9309130138 930913 WITH SIGNING OF TREATY US RETURNS TO CENTRAL ROLE IN MIDEAST PEACEMAKING BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH THE HISTORIC SIGNING OF AN ISRAELIPALESTINIAN PEACE ACCORD AT THE WHITE HOUSE TODAY THE US RETURNS TO A CENTRAL ROLE IN MIDEAST PEACEMAKING SECRETARY OF STATE WARREN CHRISTOPHER WILL HOLD AN UNPRECEDENTED STATE DEPARTMENT MEETING WITH YASSER ARAFAT CHAIRMAN OF THE PALESTINE LIBERATION ORGANIZATION FOLLOWING THE TREATY SIGNING MARKING THE HIGHESTLEVEL MEETING BETWEEN THE US AND THE PLO MR CHRISTOPHER ALSO SAID THAT SHOULD ISRAEL AND SYRIA REACH A PEACE AGREEMENT THE CLINTON ADMINISTRATION WOULD CONSIDER PUTTING US MILITARY FORCES ON THE GOLAN HEIGHTS AS PART OF A PEACEKEEPING EFFORT THE US WAS ON THE SIDELINES AS ISRAELIS AND PALESTINIANS WITH THE AID OF NORWEGIAN INTERMEDIARIES NEGOTIATED THE GROUNDBREAKING TREATY NOBODY BELIEVES EVEN IN TODAY'S BREATHTAKING ATMOSPHERE THAT PEACE BETWEEN ISRAEL AND SYRIA IS IMMINENT BUT UNDERSCORING THE US COMMITMENT TO ISRAEL'S SECURITY MR CHRISTOPHER IN AN APPEARANCE YESTERDAY ON CBS'S FACE THE NATION SAID THAT IT MIGHT WELL MEAN SOME KIND OF UNITED STATES FORCES IN THE GOLAN JUST AS WE PROVIDED FORCES IN THE SINAI TO HELP ENSURE PEACE BETWEEN ISRAEL AND EGYPT IN 1979 AT HIS MEETING WITH MR ARAFAT MR CHRISTOPHER PLANS TO DISCUSS HOW WE MOVE FROM SIGNING TO ACTUALLY CARRYING OUT THE PEACE PLAN WHICH GIVES PALESTINIANS AUTHORITY TO GOVERN INITIALLY IN GAZA AND THE WEST BANK TOWN OF JERICHO AND THEN THROUGHOUT MOST OF THE WEST BANK THE US ALSO WILL PLAY A KEY ROLE IN COORDINATING INTERNATIONALAID EFFORTS FOR THE PALESTINIANS AND IN PRODDING SYRIA AND ISRAEL TOWARD AN ACCORD IN THE LONG TERM THE US WILL HAVE TO HELP THE ISRAELIS AND PALESTINIANS WORK OUT SOME SEEMINGLY INTRACTABLE ISSUES THAT ARE BEING POSTPONED UNTIL TALKS ON THE PERMANENT STATUS OF THE OCCUPIED TERRITORIES BEGIN IN ABOUT TWO YEARS THESE ISSUES INCLUDE THE ULTIMATE STATUS OF JERUSALEM PALESTINIAN REFUGEES AND JEWISH SETTLERS WHO NOW LIVE IN THE TERRITORIES MR CHRISTOPHER IS LIKELY TO TRAVEL TO THE REGION BY EARLY OCTOBER SENIOR US OFFICIALS SAID YESTERDAY MR ARAFAT AND ISRAELI PRIME MINISTER YITZHAK RABIN WILL ATTEND TODAY'S WHITE HOUSE CEREMONY BUT THE ACCORD WILL BE SIGNED BY ISRAELI FOREIGN MINISTER SHIMON PERES AND A SENIOR PLO OFFICIAL WHEN ASKED YESTERDAY ON CNN'S NEWSMAKER SUNDAY WHETHER HE WILL SHAKE MR ARAFAT'S HAND MR RABIN BEGRUDGINGLY SAID IF IT WILL BE NEEDED THE PUBLIC MEETING OF THE TWO WHO HAVE BEEN BITTER ENEMIES FOR 30 YEARS WAS UNTHINKABLE JUST WEEKS AGO EVEN THE LOWKEY MR CHRISTOPHER WHEN DISCLOSING HIS MEETING WITH MR ARAFAT ADDED WON'T THAT BE AN UNUSUAL EVENT INDEED MR ARAFAT HAS NEVER BEFORE BEEN PERMITTED TO COME TO WASHINGTON HIS ONE TRIP TO THE US WAS IN 1974 TO ADDRESS THE UNITED NATIONS WHERE HE APPEARED WITH A HOLSTER STRAPPED TO HIS HIP AND THEN WAS HUSTLED OUT OF THE COUNTRY US OFFICIALS HAVE BEGUN TO LAY THE GROUNDWORK FOR THE FUND RAISING THAT WILL BE NEEDED TO MAKE MESSRS RABIN AND ARAFAT'S JOINT VENTURE SUCCESSFUL BESET WITH ITS OWN ECONOMIC PROBLEMS THE US WON'T MAKE A MAJOR FINANCIAL CONTRIBUTION BUT THE EUROPEAN COMMUNITY HAS PLEDGED ABOUT 600 MILLION OVER FIVE YEARS AND SCANDINAVIAN NATIONS WILL CONTRIBUTE ABOUT 140 MILLION OVER THE SAME PERIOD US OFFICIALS SAID PRESIDENT CLINTON ALSO HAS PLEDGES OF SUPPORT FOR A MULTILATERAL EFFORT FROM SAUDI ARABIA AND JAPAN BEFORE THE AGREEMENT WAS SIGNED THE SAUDIS HAD CUT OFF ALL FUNDING TO THE PLO BECAUSE OF THE GROUP'S SUPPORT OF IRAQ'S SADDAM HUSSEIN DURING THE PERSIAN GULF WAR ARAB OFFICIALS ESTIMATE THAT MR ARAFAT WILL NEED 200 MILLION TO 250 MILLION ANNUALLY FOR MUNICIPAL SERVICES TO GOVERN GAZA AND THE WEST BANK SOME ISRAELI OFFICIALS ESTIMATE THAT ABOUT 80 MILLION COULD BE RAISED BY TAXES IN THE TERRITORIES BUT A SUBSTANTIAL REBUILDING EFFORT ALSO WILL BE NEEDED PARTICULARLY IN GAZA ONE OF THE WORLD'S POOREST AND MOST DENSELY POPULATED AREAS THE WORLD BANK PROPOSED OVER THE WEEKEND A 3 BILLION 10YEAR ECONOMIC DEVELOPMENT PLAN ACCORDING TO REUTERS MR RABIN SAID DURING YESTERDAY'S CNN INTERVIEW THAT ISRAEL ALSO WILL HAVE TO SPEND HUNDREDS OF MILLIONS OF DOLLARS TO REDEPLOY ITS MILITARY FORCES FROM THE OCCUPIED TERRITORIES AND HE ADDED THAT ISRAEL HASN'T INSISTED UPON COMPENSATION FOR THESE COSTS AS A CONDITION FOR PEACE HE DID MAKE CLEAR HOWEVER THAT ISRAELIPALESTINIAN NEGOTIATIONS OVER FINAL ARRANGEMENTS FOR THE TERRITORIES WON'T BE EASY AND LIKELY WILL REQUIRE A MAJOR US ASSIST MR RABIN WHO AS ARMY CHIEF OF STAFF LED THE CONQUEST OF THE OCCUPIED TERRITORIES IN 1967 SAID ISRAEL WOULD NEVER AGREE TO A DIVIDED JERUSALEM OR TO ISRAEL'S PRE1967 BORDERS WHEN REMINDED THAT MR ARAFAT LAST WEEK EVOKED THE IMAGE OF THE PALESTINIAN FLAG FLYING OVER JERUSALEM MR RABIN SAID HE CAN FORGET ABOUT IT THE US ALSO WILL PLAY A CRUCIAL ROLE IN SYRIANISRAELI TALKS EARLIER THIS SUMMER SYRIAN PRESIDENT HAFEZ ALASSAD TOLD US OFFICIALS HE WANTED MR CHRISTOPHER TO ACT AS A MEDIATOR BY CONVEYING MESSAGES BETWEEN HIM AND MR RABIN BUT SYRIA'S PRICE FOR PEACE IS ALSO A BETTER RELATIONSHIP WITH WASHINGTON IT IS UNDERSTOOD THAT MR ASSAD COMPLAINS TO OTHER ARAB LEADERS THAT HE HAS MADE A NUMBER OF CONCILIATORY GESTURES TOWARD THE US BUT HAS RECEIVED NOTHING IN RETURN SYRIA WANTS TO BE REMOVED FROM THE US LIST OF STATES THAT SUPPORT INTERNATIONAL TERRORISM AND IT ALSO WANTS US AID TO HELP DEVELOP ITS ECONOMY THE ADMINISTRATION HAS A LESSER ROLE TO PLAY IN PEACE TALKS BETWEEN ISRAEL AND JORDAN US OFFICIALS EXPECT THE TWO NATIONS TO AGREE TOMORROW TO A SPECIFIC AGENDA FOR PEACE TALKS THE TWO SIDES WILL THEN FORM WORKING GROUPS TO DEAL WITH SPECIFIC ISSUES INCLUDING THE STATUS OF AND POSSIBLE COMPENSATION TO HUNDREDS OF THOUSANDS OF PALESTINIAN REFUGEES WHO FLED THEIR HOMES DURING ARABISRAELI WARS TODAY HOWEVER THE ATTENTION WILL BE ON THE ISRAELIPALESTINIAN TRACK I THINK THE OPTIMISTS WON NABIL SHAATH A SENIOR PLO OFFICIAL SAID LAST WEEK 9309130137 930913 BRITAIN'S TRADE GAP CONTRACTED SLIGHTLY IN SECOND QUARTER SPECIAL TO THE WALL STREET JOURNAL LONDON BRITAIN'S MERCHANDISE TRADE GAP WITH THE REST OF THE WORLD NARROWED SLIGHTLY IN THE SECOND QUARTER AS MANUFACTURERS BENEFITED FROM LOWER EXPENSES AND FAVORABLE EXCHANGE RATES DATA RELEASED FRIDAY BY THE CENTRAL STATISTICAL OFFICE SHOWED THE MERCHANDISE TRADE DEFICIT NARROWING TO 33 BILLION 511 BILLION ON A SEASONALLY ADJUSTED BASIS FROM A FIRSTPERIOD 35 BILLION ECONOMISTS SAID DECLINES IN WAGE COSTS AND THE WEAKENING OF THE POUND SINCE SEPTEMBER HAVE ALLOWED MANUFACTURERS TO KEEP PRICE INCREASES TO A MINIMUM THIS THEY SAID NOT ONLY HELPED UNITED KINGDOM GOODS TO SELL OVERSEAS DESPITE THE RECESSION IN CONTINENTAL EUROPE BUT ENCOURAGED CONSUMERS AT HOME TO BUY DOMESTIC RATHER THAN IMPORTED PRODUCTS WHAT WE'RE SEEING AT THE MOMENT ARE THE BENEFITS OF EVERYTHING THAT'S HAPPENED RECENTLY FALLING WAGE COSTS DEVALUATION AND SO ON SAID DAVID OWEN ECONOMIST AT KLEINWORT BENSON SECURITIES IN LONDON MR OWEN ALSO NOTED THAT THE DATA HIGHLIGHTED THE FACT THAT THE RECESSION IN EUROPE AND RECOVERY IN THE UK HASN'T LED TO AN EXPLOSION IN THE TRADE DEFICIT THE STATISTICAL OFFICE SAID THE FIRSTQUARTER DEFICIT WAS REVISED SHARPLY FROM AN ESTIMATE OF P45 BILLION MARKET EXPECTATIONS FOR THE SECOND QUARTER WERE FOR A TRADE GAP BETWEEN 42 BILLION AND 47 BILLION FIGURES FOR TRADE WITH THE OTHER 11 MEMBERS OF THE EUROPEAN COMMUNITY ALONE SHOWED A SECONDQUARTER DEFICIT OF 800 MILLION COMPARED TO A REVISED FIRSTQUARTER DEFICIT OF 400 MILLION THE FIRSTQUARTER GAP WAS REVISED SHARPLY DOWN FROM AN ORIGINAL ESTIMATE OF 11 BILLION THE VALUE OF EXPORTS TO THE EC FELL 63 IN THE SECOND QUARTER TO 15 BILLION FROM A REVISED FIRSTQUARTER 16 BILLION AND IM PORTS FELL 37 TO 158 BILLION FROM A REVISED 164 BILLION 9309130136 930913 WHO'S NEWS ALLIED WASTE INDUSTRIES INC ALLIED WASTE INDUSTRIES INC HOUSTON LUKE F BOTICA WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE SOLIDWASTE DISPOSAL AND RECYCLING COMPANY MR BOTICA 42 YEARS OLD WAS MOST RECENTLY VICE PRESIDENT PLANNING AND CORPORATE DEVELOPMENT AT CHEMICAL WASTE MANAGEMENT INC 9309130135 930913 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK RANDOLPH W SIDES 38 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND DEPUTY HEAD OF US GOVERNMENT SECURITIES AT THE BANK'S CHASE SECURITIES INC UNIT MR SIDES WAS PREVIOUSLY MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF CS FIRST BOSTON AUSTRALIA HOLDINGS A UNIT OF CS FIRST BOSTON INC THAT NOW OPERATES UNDER THE PARENT'S NAME 9309130134 930913 JAPAN SUSPENDS PART OF BUSINESS OF 3 BROKERAGES TOKYO KYODO JAPAN'S FINANCE MINISTRY SAID FRIDAY THAT IT ORDERED YAMAICHI SECURITIES CO AND TWO OTHER BROKERAGES TO SUSPEND PART OF THEIR STOCK BROKERAGE BUSINESS FOR TWO TO FIVE DAYS FOR THEIR INVOLVEMENT IN A STOCKPRICE MANIPULATION CASE THE SUSPENSION CAME IN RESPONSE TO A RECOMMENDATION FROM THE SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION LAST WEEK THAT THE THREE BROKERAGES BE PUNISHED FOR BEING INVOLVED IN A JUMP IN THE SHARE PRICE OF NIHON UNISYS LTD THE TWO OTHER BROKERAGES ARE UNIVERSAL SECURITIES CO AND KYOSEI SECURITIES CO YAMAICHI WAS ORDERED TO SUSPEND BROKERAGE BUSINESS AT ITS BRANCH IN GOTANDA TOKYO FOR TWO DAYS BEGINNING THURSDAY FOR THE BRANCH'S INVOLVEMENT IN THE PRICE MANIPULATION THE MINISTRY ALSO ORDERED UNIVERSAL SECURITIES TO SUSPEND BROKERAGE BUSINESS AT ITS BRANCH IN HIBIYA TOKYO FOR THREE DAYS BEGINNING THURSDAY AND KYOSEI SECURITIES TO SUSPEND BROKERAGE BUSINESS AT ITS SALES OUTLET IN MIZONOGUCHI KAWASAKI FOR FIVE DAYS THE THREE BROKERAGES HAVE ADMITTED THESE BRANCHES RECEIVED ORDERS FOR SHARES IN THE COMPUTER COMPANY AND BOUGHT THEM BETWEEN SEPTEMBER 1990 AND MAY 1991 WHILE KNOWING THAT A SPECULATOR WAS TRYING TO MANIPULATE THE SHARE PRICE THE BROKERAGES HOWEVER COULDN'T BE REACHED FOR COMMENT OR CONFIRMATION REGARDING THE REPORTED SUSPENSIONS NIHON UNISYS IS PARTLY OWNED BY UNISYS CORP OF THE US THE COMMISSION ALSO RECOMMENDED THAT 13 EMPLOYEES FROM A TOTAL OF 11 BROKERAGES INCLUDING KYOSEI BE PUNISHED BY THE JAPAN SECURITIES DEALERS ASSOCIATION WHICH MONITORS THE BROKERAGE INDUSTRY THE ASSOCIATION IS EXPECTED TO SUSPEND OR CANCEL STOCK SALES LICENSES GIVEN TO THE 13 INDIVIDUALS INDUSTRY SOURCES SAID 9309130133 930913 ITALY'S ANSALDO DOUBLES ITS INVESTMENT IN HUNGARIAN UNIT TO KEEP IT AFLOAT BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST ANSALDO SPA OF ITALY IS PLOUGHING ANOTHER 16 MILLION INTO ITS UNPROFITABLE HUNGARIAN SUBSIDIARY IN A BID TO KEEP IT AFLOAT AND MAINTAIN THE ITALIAN COMPANY'S STRATEGIC PRESENCE IN EASTERN EUROPE THE NEED FOR A FRESH CAPITAL INJECTION INTO ANSALDO'S SUBSIDIARY REFLECTS THE PERILS FACING MANY WESTERN COMPANIES THAT WERE AMONG THE FIRST TO ENTER THE EAST EUROPEAN MARKET THE MOVE WHICH DOUBLES ANSALDO'S ORIGINAL INVESTMENT HERE IS AIMED AT MODERNIZING AND EXPANDING PRODUCTION FACILITIES AT ITS HUNGARIAN UNIT GANZ ANSALDO AN ELECTRICALEQUIPMENT MANUFACTURER THE MONEY GOES INTO A NEW JOINT VENTURE WITH DUNAFERR HUNGARY'S LARGEST STATE STEEL COMPANY TO BUILD A HIGHTECH FACTORY OUTSIDE BUDAPEST FOR ELECTROMECHANICAL COMPONENTS GANZ ANSALDO'S OUTDATED PRODUCTION FACILITY IN BUDAPEST IS TO CLOSE DOWN DUNAFERR WHICH IS ONE OF HUNGARY'S MOST INDEBTED STATE COMPANIES WILL PROVIDE THE FACTORY SITE AND RECEIVE ORDERS FOR STRUCTURAL STEEL TO BUILD THE PLANT AT TAPIOSZELE 80 KILOMETERS SOUTH OF BUDAPEST DUNAFERR ALSO HOPES TO TRANSFER SOME OF ITS WORKERS TO JOBS AT THE FACTORY ANSALDO IS PART OF FINMECCANICA WHICH IN TURN IS PART OF IRI ITALY'S HUGE STATEOWNED HOLDING COMPANY FORMALLY NAMED ISTITUTO PER LA RICOSTRUZIONE IN 1991 ANSALDO BOUGHT 51 OF THE GANZ ELECTRICAL WORKS FROM THE STATE FOR 16 MILLION IN HOPES OF SECURING A QUICK FOOTHOLD IN THE REGION GANZ HAD A REPUTATION FOR TECHNICAL PROWESS SKILLED WORKERS AND A SECURE CUSTOMER BASE BUT THE COLLAPSE OF THE SOCIALIST MARKET DID AWAY WITH GANZ'S TRADITIONAL BUYERS MOREOVER THE LIBERALIZATION OF HUNGARY'S ECONOMY OPENED THE COUNTRY TO OTHER WESTERN INDUSTRIAL GIANTS WHO EASILY OUTSTRIPPED GANZ'S COMPETITIVENESS DELIVERY TIMES AT GANZ WERE TWICE AS LONG AS WESTERN FIRMS AND 90 OF ITS TRANSFORMERS SHORTED OUT IN THE FIELD ORDERS REVENUE AND PROFIT PLUNGED AND ANSALDO WAS FORCED TO LAY OFF 2000 EMPLOYEESHALF OF THE ENTIRE WORK FORCE DESPITE A MASSIVE REORGANIZATION IT PROVED MORE DIFFICULT THAN ANTICIPATED TO IMPROVE QUALITY AND PRODUCTION BRUNO MUSSO VICE PRESIDENT AND MANAGING DIRECTOR OF ANSALDO DESCRIBES THE NEW JOINT VENTURE AS A STRATEGIC ALLIANCE THAT IS PART OF GANZ ANSALDO'S CONTINUING RESTRUCTURING EFFORT HE DEFENDED THE FURTHER INVESTMENT AS NECESSARY TO KEEP THE COMPANY A MAJOR PLAYER IN BOTH THE DOMESTIC AND INTERNATIONAL MARKETS WE ARE INVESTING MORE TO AVOID LOSING MORE IN THE FUTURE SAYS MR MUSSO TO BE HONEST OUR LOSSES AT GANZ ANSALDO DO NOT JUSTIFY THE ENTIRE ENGAGEMENT AND IF I LOOK CAREFULLY AT THE FIGURES I WOULD CLOSE IT DOWN HE SAYS BUT IT'S A STRATEGIC COMPANY FOR US BECAUSE A GLOBAL ELECTROMECHANICAL GROUP LIKE ANSALDO MUST HAVE A BASE IN EASTERN EUROPE MR MUSSO SEES SIGNS OF A TURNAROUND AT GANZ ANSALDO AND IF THE TREND CONTINUES PROFITABILITY BY 1996 HOWEVER HE IS WARY OF PREDICTIONS WE CANNOT DEMAND OR EXPECT AN ECONOMIC RETURN IN THE SHORT TERM AND WE ARE THEREFORE COMMITTED TO REMAINING HERE AND KEEPING GANZ PART OF ANSALDO'S OPERATIONS HE SAYS THE JOINT VENTURE ALSO FITS INTO DUNAFERR'S SURVIVAL STRATEGY BY DIVERSIFYING THE STATE COMPANY'S FOCUS OF OPERATION BEYOND METALLURGY WHICH CURRENTLY MAKES UP THE BULK OF ITS ACTIVITIES ISTVAN HORVATH GENERAL DIRECTOR OF DUNAFERR SAYS THE JOINT VENTURE OPENS THE WAY FOR FURTHER COOPERATION WITH ANSALDO WE WILL NOT ONLY BUILD THE FACTORY BUT HOPE TO GET INVOLVED IN SUPPLYING AND MAINTAINING PRODUCTS IN ITS OTHER NONMETALLURGICAL SUBSIDIARIES HE SAYS DUNAFERR LIKE OTHER HUNGARIAN IRON AND STEEL PRODUCERS HAS BEEN HARD HIT BY THE LOSS OF ITS OLD CUSTOMERS THE GENERAL DOWNTURN IN THE GLOBAL STEEL MARKET AND THE UNITED NATIONS EMBARGO AGAINST THE FORMER YUGOSLAVIA WHICH HAS DISRUPTED ITS RIVER SUPPLY ROUTE ON THE DANUBE MR HORVATH HOPES THE ALLIANCE WILL MAKE DUNAFERR MORE ATTRACTIVE AS IT MOVES TOWARD PARTIAL PRIVATIZATION ACCORDING TO A GOVERNMENT DECREE 75 IS TO BE SOLD OFF WHILE THE STATE RETAINS A 25 STAKE 9309130132 930913 DIVIDENDS ALLEGHENY POWER SYSTEM INC ALLEGHENY POWER SYSTEM INC NEW YORK SAID IT RECOMMENDED A 2FOR1 STOCK SPLIT SUBJECT TO SHAREHOLDER APPROVAL HOLDERS OF THE ELECTRIC UTILITY HOLDING COMPANY WOULD HAVE TO APPROVE CHANGING THE PAR VALUE OF THE STOCK FROM A PRESPLIT 250 TO A POSTSPLIT 125 PER SHARE THE SPLIT WILL BE DISTRIBUTED NOV 3 TO STOCK OF RECORD SEPT 24 THE COMPANY HAS ABOUT 571 MILLION SHARES OUTSTANDING THE COMPANY ALSO DECLARED AN 82 CENTS PER SHARE QUARTERLY DIVIDEND PAYABLE SEPT 30 TO STOCK OF RECORD SEPT 1 9309130131 930913 YOUR MONEY MATTERS THE CLINTON HEALTH PLAN WOULD YOU FARE BETTER UNDER HEALTH REFORM BY ELLEN E SCHULTZ AND GEORGETTE JASEN STAFF REPORTERS OF THE WALL STREET JOURNAL WHAT WOULD THE CLINTON HEALTH PLAN MEAN FOR YOU AND YOUR FAMILY THE ANSWER DEPENDS A LOT ON WHAT KIND OF HEALTH COVERAGE YOU HAVE NOW CLEAR WINNERS WOULD INCLUDE THE MILLIONS OF PEOPLE CURRENTLY WITHOUT HEALTH COVERAGE INCLUDING PARTTIME WORKERS AND THOSE WHO WORK AT SMALL BUSINESSES PEOPLE NEAR OR IN RETIREMENT THE DISABLED THE UNEMPLOYED DEPENDENT STUDENTS AND INDEPENDENT CONTRACTORS WOULD ALSO STAND TO GAIN BUT THE PLAN COULD BE A MIXED BLESSING FOR PEOPLE ALREADY COVERED IN THE WORKPLACE WHILE THEY WOULD GAIN INCREASED SECURITY IN THE EVENT OF UNEMPLOYMENT OR A JOB SWITCH THEY COULD END UP PAYING MORE AND FACING NEW RESTRICTIONS AMONG OTHER PROPOSED CHANGES THE CLINTON PLAN WOULD REPEAL A MAJOR BENEFIT ENJOYED BY EMPLOYEES AT MANY COMPANIES WHO USE PRETAX DOLLARS TO PAY FOR SOME OF THEIR HEALTHCARE PREMIUMS AND FOR UNREIMBURSED MEDICAL EXPENSES AND IF AN EMPLOYER IS OFFERING RICHER BENEFITS WITH MORE DENTAL MENTAL HEALTH OR MEDICAL COVERAGE THAN WOULD BE MANDATED UNDER THE BASIC FEDERAL PACKAGE THE VALUE WOULD AFTER A 10YEAR GRACE PERIOD COUNT AS TAXABLE INCOME TO THE INDIVIDUAL OF COURSE THERE IS ENORMOUS UNCERTAINTY ABOUT THE FATE OF THE SWEEPING HEALTHCARE OVERHAUL PROPOSED IN A 239PAGE DRAFT MAKING THE ROUNDS IN WASHINGTON NUMEROUS CHANGES ARE NOT ONLY POSSIBLE BUT LIKELY AS HEALTHCARE CONSUMERS AND OTHERS WEIGH IN WITH THEIR VIEWS IT'S POLITICAL DYNAMITE TO TAX HEALTH BENEFITS SO THIS IS A DELAYED FUSE SAYS FRANK MCARDLE PARTNER AND MANAGER OF RESEARCH GROUP HEWITT ASSOCIATES UNDER THE ADMINISTRATION'S DRAFT PROPOSAL ALL AMERICANS WOULD HAVE HEALTHCARE COVERAGE THE BASIC CHOICE WOULD BE BETWEEN A HEALTH MAINTENANCE ORGANIZATION A FEEFORSERVICE PLAN OR A COMBINATION PLAN BUT HOW THE PROPOSAL WOULD ACTUALLY WORK AND HOW MUCH AN INDIVIDUAL OR FAMILY WOULD HAVE TO PAY WOULD DEPEND NOT ONLY ON WHICH OPTION YOU SELECTED BUT ALSO ON SUCH THINGS AS YOUR EMPLOYMENT STATUS THE SIZE OF YOUR EMPLOYER AND INCOME HERE'S HOW THE PLAN WOULD AFFECT DIFFERENT GROUPS OF PEOPLE CORPORATE EMPLOYEES THE ESTIMATED AVERAGE PREMIUM COST FOR INDIVIDUAL COVERAGE UNDER THE PROPOSAL WOULD BE 1800 AND 4200 FOR FAMILY COVERAGE EMPLOYERS WOULD BE REQUIRED TO PAY A MINIMUM OF 80 OF THE PREMIUM COST FOR A MANDATED PACKAGE OF BENEFITS THE EMPLOYEE WOULD BE REQUIRED TO PAY AS MUCH AS 20 PROBABLY THROUGH PAYROLL WITHHOLDING IN ADDITION EMPLOYEES WOULD BE RESPONSIBLE FOR OUTOFPOCKET COSTS WHICH COULD INCLUDE 10 PER VISIT TO AN HMO OR 20 COPAYMENTS PLUS ANNUAL DEDUCTIBLES UNDER A FEEFORSERVICE OPTION THESE OUTOFPOCKET COSTS WOULD BE CAPPED AT 1500 A YEAR FOR INDIVIDUALS AND 3000 FOR A FAMILY AN EMPLOYEE OPTING FOR A HIGHCOST PLAN THAT OFFERS MORE CHOICES AND ADDITIONAL SERVICES THAN THE MINIMUM MANDATED UNDER THE CLINTON PROPOSAL COULD END UP PAYING MORE THAN 20 OF THE PREMIUM COST IT WORKS LIKE THIS LET'S SAY THE ANNUAL PREMIUM FOR FAMILY COVERAGE IS 4500 COMPARED WITH THE 4200 AVERAGE THE EMPLOYER WOULD BE OBLIGATED TO PAY 3360 AND THE EMPLOYEE COULD PAY AS MUCH AS 1140 MORE THAN 25 OF THE ANNUAL COST A FEW THINGS COULD ALSO ADD TO AN INDIVIDUAL'S COSTS IN ADDITION TO ENDING THE ABILITY TO PAY FOR CERTAIN EXPENSES WITH PRETAX DOLLARS THE PLAN WOULDN'T PERMIT EMPLOYEES TO OPT OUT OF COVERAGE SO THOSE WHO CURRENTLY HAVE THE OPTION UNDER CORPORATE FLEX PLANS TO RECEIVE ONLY CATASTROPHIC COVERAGE WOULD NO LONGER BE ABLE TO DO SO SMALL BUSINESS EMPLOYEES PEOPLE WORKING FOR SMALL BUSINESSES ARE LIKELY TO HAVE BETTER HEALTHCARE COVERAGE THAN THEY HAVE NOW SINCE MANY SMALL BUSINESSES CURRENTLY DON'T PAY FOR HEALTH INSURANCE FOR EMPLOYEES OR REQUIRE EMPLOYEES TO PAY A SIGNIFICANT SHARE OF THE COST FOR COVERAGE THAT IS LIMITED COMPARED WITH BIGCOMPANY OFFERINGS THOSE WHO HAVE NEVER HAD COVERAGE WILL HAVE IT NOW SAYS JOEL KAVET OF BENEFITS CONSULTANTS WILLIAM M MERCER INC IN STAMFORD CONN AND EMPLOYEES OF SMALL COMPANIES WILL HAVE COVERAGE ON A PAR WITH IBM STILL CRITICS OF THE CLINTON PLAN CONTEND THAT EMPLOYERS WHO HAVE TO PAY MORE FOR HEALTHCARE COVERAGE WILL SEEK TO PAY LESS FOR OTHER THINGS PAY RAISES ARE GOING TO BE CONSTRAINED THEY'RE GOING TO HAVE TO LAY PEOPLE OFF PREDICTS HAL DAUB DIRECTOR OF FEDERAL GOVERNMENT AFFAIRS FOR ACCOUNTANTS DELOITTE & TOUCHE AND A FORMER REPUBLICAN CONGRESSMAN FROM NEBRASKA AFTER A WHILE PEOPLE ARE GOING TO SAY THEY HAD A BETTER DEAL THE OTHER WAY SELFEMPLOYED SELFEMPLOYED INDIVIDUALS WOULD HAVE TO PAY BOTH THE EMPLOYER AND THE EMPLOYEE PORTIONS OF THE HEALTHCARE PREMIUM THEY WOULD PAY THE SAME RATES AS LARGE CORPORATIONS WHICH WOULD BE LOWER THAN CURRENT PREMIUMS FOR INDIVIDUAL COVERAGE STILL SOME PEOPLE WOULD PAY MORE THAN THEY DO NOW BECAUSE THEY WOULD BE REQUIRED TO PAY FOR AT LEAST THE BASIC MINIMUM COVERAGE CURRENTLY THE SELFEMPLOYED MAY BE COVERED UNDER A SPOUSE'S PLAN AT WORK OR THEY MAY OPT FOR A POLICY THAT IS LIMITED TO HOSPITALIZATION OR CATASTROPHIC ILLNESS AND COSTS SIGNIFICANTLY LESS THAN THE COMPREHENSIVE PLAN PROPOSED IN PRESIDENT CLINTON'S DRAFT PLAN BUT THEIR TOTAL HEALTHCARE COSTS COULD BE LOWER WITH THE COVERAGE UNDER THE CLINTON PLAN AN HMO FOR INSTANCE MIGHT GIVE MORE COVERAGE THAN THEY HAVE CURRENTLY AT LOWER COST WHAT'S MORE IT WOULD BE EASIER TO GET COVERAGE CURRENTLY MANY INSURANCE COMPANIES ARE RELUCTANT TO WRITE INDIVIDUAL POLICIES AND SUCH POLICIES CAN BE QUITE COSTLY PEOPLE WITH HEALTH PROBLEMS OFTEN CAN'T GET COVERAGE AT ALL THE SITUATION OF BEING LEFT ALONE TO BUY YOUR OWN CARE WON'T BE AS HIDEOUS AS IT IS TODAY SAYS MR KAVET OF MERCER THE TOTAL COST OF THE PREMIUM COULD BE TAXDEDUCTIBLE FOR THE SELFEMPLOYED UNDER THE CLINTON PLAN COMPARED WITH 25 NOW INDEPENDENT CONTRACTORS INDEPENDENT CONTRACTORS WHO EARN MORE THAN 80 OF THEIR ANNUAL INCOMES FROM ONE EMPLOYER WOULD BE COVERED AS AN EMPLOYEE OF THAT EMPLOYER THIS PROVISION IS INTENDED TO PREVENT EMPLOYERS FROM CLASSIFYING WORKERS AS INDEPENDENT CONTRACTORS TO AVOID PAYING THEIR HEALTH PREMIUMS PARTTIME WORKERS PEOPLE WHO WORK MORE THAN 30 HOURS A WEEK WOULD BE ENTITLED TO FULL MEDICAL BENEFITS WHILE THOSE WHO WORK 10 HOURS TO 30 HOURS WOULD BE ENTITLED TO COVERAGE ON A PRORATED BASIS THIS WOULD BE A CLEAR BOON TO MANY PARTTIME WORKERS WHO CURRENTLY HAVE LITTLE OR NO MEDICAL BENEFIT MR MCARDLE OF HEWITT BELIEVES THIS WOULD RAISE COSTS FOR COMPANIES WITH LARGE POOLS OF CURRENTLY UNCOVERED PARTTIME WORKERS WHICH MAY LEAD THEM TO INCREASE OVERTIME FOR FULLTIME WORKERS SHIFT JOBS OFFSHORE OR AUTOMATE RETIREES RETIREES WOULD BE AMONG THE BIGGEST WINNERS UNDER THE PROPOSAL AT A TIME WHEN EMPLOYERS ARE INCREASINGLY CUTTING HEALTHCARE COVERAGE FOR RETIREES THESE INDIVIDUALS OFTEN FIND THEMSELVES WITHOUT MEDICAL COVERAGE OR WITH EXORBITANT COSTS UNTIL THEY REACH AGE 65 AND QUALIFY FOR MEDICARE BUT MR MCARDLE THINKS EARLY RETIREMENTS WOULD INCREASE BY A THIRD SINCE THE CLINTON PLAN WOULD PROVIDE PEOPLE WITH SECURITY THEY NOW LACK THIS WOULD BE A BOON TO COMPANIES THAT ARE DOWNSIZING AND TO COMPANIES WITH LARGE RETIREE HEALTH OBLIGATIONS SUCH AS AUTOMOTIVE AND STEEL COMPANIES SINCE THEY COULD SHIFT MOST OF THEIR COSTS TO THE REGIONAL ALLIANCES MEDICARE RECIPIENTS INDIVIDUALS OVER AGE 65 WOULD CONTINUE TO ENROLL IN THE MEDICARE PROGRAM BUT THE FEDERAL GOVERNMENT WOULD INCREASE PREMIUMS FOR INDIVIDUALS WITH INCOMES OF MORE THAN 100000 AND FOR COUPLES WITH INCOMES ABOVE 125000 UNEMPLOYED WORKERS A PERSON WHO IS LAID OFF OR FIRED WOULD BE COVERED BY A SPOUSE'S PLAN IF SINGLE OR IF THE SPOUSE IS ALSO UNEMPLOYED THE WORKER WOULD BE COVERED BY THE REGIONAL ALLIANCE SOME LARGER EMPLOYERS WOULD BE REQUIRED TO CONTINUE TO PAY THEIR SHARE OF THE HEALTH PREMIUM FOR SIX MONTHS LOWWAGE WORKERS EMPLOYEES WHO COULDN'T AFFORD TO PAY THEIR 20 OF THE HEALTH INSURANCE PREMIUM MAY QUALIFY FOR GOVERNMENT SUBSIDIES THE SUBSIDIES WOULD KICK IN IF FAMILY INCOME FELL BELOW 150 OF THE POVERTY LEVEL BASED ON A SLIDING SCALE PEOPLE WHO NOW RECEIVE MEDICAID THE FEDERAL HEALTH SYSTEM FOR THE POOR WOULD INSTEAD JOIN A REGIONAL HEALTH ALLIANCE IF EMPLOYED THEIR EMPLOYER WOULD PAY PART OF THEIR PREMIUM IF UNEMPLOYED THE GOVERNMENT WOULD PAY THE COSTS DISABLED WORKERS DISABLED INDIVIDUALS IN THE WORKPLACE WOULD FIND RELIEF UNDER THE PLAN SINCE THEY COULD NOT BE EXCLUDED FROM COVERAGE OR BE FORCED TO PAY HIGHER PREMIUMS THE PLAN WOULD ALSO ENCOURAGE THE NONWORKING DISABLED TO MOVE BACK INTO THE WORK FORCE SINCE THEY WOULD NOT JEOPARDIZE ANY BENEFITS THEY WERE RECEIVING UNDER MEDICAID OR SOCIAL SECURITY MORE IMPORTANT THE PROPOSAL WOULD PROVIDE EMPLOYED INDIVIDUALS WHO REQUIRE ASSISTANCE WITH DAILY LIVING A TAX CREDIT FOR 50 OF THEIR COSTS UP TO 15000 A YEAR THIS COULD INCLUDE HOME HELP COMMUNICATION AND MOBILITY SERVICES WORK RELATED SUPPORT SERVICES AND ASSISTANCE WITH LIFE SKILLS INCLUDING MONEY MANAGEMENT SERVICES INJURED WORKERS THE PLAN WOULD CONTINUE TO PROVIDE WORKERS' COMPENSATION FOR EMPLOYEES WHO BECOME SICK OR INJURED ON THE JOB THE BIG DIFFERENCE IS THAT EMPLOYEES WOULD RECEIVE CARE UNDER THE SAME REGIONAL ALLIANCES THAT PROVIDE THEIR HEALTH COVERAGE FURTHER THE PLAN WOULD PREVENT DOCTORS FROM CHARGING INJURED WORKERS MORE THAN THEIR INSURER WOULD REIMBURSE STUDENTS UNDER THE CLINTON PROPOSAL DEPENDENT FULLTIME STUDENTS WOULD BE ENROLLED UNDER THE REGIONAL ALLIANCE WHERE THEY ATTEND SCHOOL AND THEIR PARENTS' PLAN WOULD PAY THE PREMIUMS INDEPENDENT STUDENTS WOULD ENROLL IN THE REGIONAL ALLIANCE WHERE THEIR SCHOOL IS LOCATED WHATEVER HAPPENS TO PRESIDENT CLINTON'S PROPOSED HEALTH PLAN MANY EMPLOYERS ARE ALREADY INCREASING DEDUCTIBLES COPAYMENTS AND THE PERCENTAGE OF PREMIUMS EMPLOYEES HAVE TO PAY FOR MEDICAL COVERAGE AND THAT TREND IS LIKELY TO ACCELERATE AS A RESULT HERE ARE SOME THINGS EMPLOYEES SHOULD CONSIDER DOING NOW HAVE MEDICAL AND DENTAL APPOINTMENTS THIS YEAR YOUR SHARE OF THE COSTS WILL ALMOST CERTAINLY INCREASE NEXT YEAR AND SOME COVERAGE MAY BE CUT BACK SIGN UP FOR TAXDEFERRED MEDICAL SAVINGS ACCOUNTS WHILE THESE WOULD BE REPEALED UNDER THE PROPOSED PLAN THEY WOULD BE IN EFFECT NEXT YEAR AND CAN SAVE YOU HUNDREDS OF DOLLARS FILE CLAIMS IMMEDIATELY MANY COMPANIES ARE INSTALLING CUTOFF POINTS THAT DISQUALIFY YOU FROM GETTING REIMBURSED IF YOU DON'T FILE IN A TIMELY MANNER BEFORE GETTING COSTLY CARE DOUBLE CHECK WITH YOUR BENEFIT OFFICE TO SEE IF IT'S STILL COVERED AND IF IT REQUIRES PRIOR APPROVAL WHILE MANY PLANS ARE IMPLEMENTING CHANGES NEXT YEAR MANY HAVE ALREADY INSTALLED FURTHER LIMITS WHICH EMPLOYEES MAY BE UNAWARE OF 9309130130 930913 THE CLINTON HEALTH PLAN MAJOR EMPLOYERS FEAR NEW RESTRAINTS NO IMMUNITY CHANGES TO HIT EVERY SIZE FIRM BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU THINK THAT BECAUSE YOU WORK FOR A BIG COMPANY YOU ESCAPE THE IMPACT OF THE CLINTON PLAN GUESS AGAIN THE DRAFT VERSION OF THE PLAN EXPLICITLY SAYS COMPANIES WITH MORE THAN 5000 WORKERS DON'T HAVE TO JOIN THE NEW REGIONAL ALLIANCES THAT WOULD BE CREATED TO BUY HEALTH INSURANCE INSTEAD EACH COMPANY COULD FORM ITS OWN CORPORATE ALLIANCE PROVIDED THEY MEET ALMOST ALL FEDERAL STANDARDS INCLUDING THE MANDATED GOVERNMENT BENEFITS PACKAGE BUT BIG COMPANIES CAN VOLUNTARILY JOIN THE ALLIANCES AND THE PLAN PROVIDES PLENTY OF REASONS TO VOLUNTEER SUCH AS POSSIBLY IMPOSING HIGHER COSTS FOR GOING IT ALONE ABOUT 35 OF THE WORK FORCE WORKS FOR COMPANIES WITH MORE THAN 5000 EMPLOYEES FOR WORKERS THE MOVE INTO A HEALTH ALLIANCE COULD MEAN EITHER JOINING A FEEFORSERVICE PLAN OR A A HEALTHCARE NETWORK SUCH S A HEALTH MAINTENANCE ORGANIZATION AND ALTHOUGH THE OUTOFPOCKET COSTS FOR EMPLOYEES COULD STAY THE SAME THE WORKERS RATHER THAN THEIR EMPLOYERS WOULD BECOME RESPONSIBLE FOR PICKING A HEALTH INSURER THEY WOULD THEN GET TO CHOOSE FROM AN ARRAY OF HEALTH PLANS OFFERED BY THE ALLIANCE MOST BIG COMPANIES COVER THEIR EMPLOYEES THROUGH SOME FORM OF SELFINSURANCE ALTHOUGH AETNA LIFE & CASUALTY CO METROPOLITAN LIFE INSURANCE CO OR SOME OTHER HEALTHINSURANCE COMPANY ADMINISTERS THE INSURANCE PROGRAM THE COMPANY ABSORBS THE RISKS AND PAYS THE BILLS LARGE COMPANIES HAVE FOUND SELFINSURANCE CHEAPER THAN BUYING AN INSURANCE PLAN BUT WHILE THE CLINTON PROPOSAL ALLOWS BUSINESS AS USUAL IT ABOLISHES MANY OF THE MOTIVES TO SELFINSURE SUCH AS THE AVOIDANCE OF STATEMANDATED HEALTH BENEFITS AND COMPANIES THAT CONTINUE TO SELFINSURE WOULD SUDDENLY FIND THEMSELVES OPERATING UNDER A WHOLE NEW SET OF RULES THEIR INSURANCE PLAN FOR INSTANCE WOULD HAVE TO MEET TOUGH SOLVENCY RULES THE CLINTON PLAN GIVES A HOST OF INCENTIVES FOR EMPLOYERS TO JOIN THE ALLIANCES INCLUDING SUBSIDIES TO EMPLOYERS SUCH AS AUTO MAKERS WHOSE HEALTHCARE COSTS EXCEED A CERTAIN PERCENTAGE OF THEIR PAYROLL EXPENSES THAT'S GOING TO CREATE A VERY SUBSTANTIAL REDISTRIBUTION OF THE COST BURDEN SAID PAUL COOPER VICE PRESIDENT FOR HEALTH POLICY AT PRUDENTIAL INSURANCE CO OF AMERICA JOINING AN ALLIANCE WOULD ALSO ALLOW BIG EMPLOYERS TO ESCAPE A POSSIBLE SURCHARGE ON PAYROLLS ASSESSED ON COMPANIES THAT GO IT ALONE EVEN A LARGE EMPLOYER THAT IS DEAD SET AGAINST JOINING A HEALTH ALLIANCE COULD END UP IN A STATERUN SYSTEM THE CLINTON PLAN GIVES STATES THE OPTION OF HAVING THEIR HEALTH ALLIANCES ACT AS THE SOLE PAYERS OF HEALTH CARE VERMONT HAS TALKED ABOUT IT AND NEW YORK WOULD CERTAINLY BE A POSSIBILITY MR COOPER SAID SEE RELATED ARTICLE COMPANIES FRET OVER CONTROLS INCREASED COSTS WSJ SEPT 13 1993 9309130129 930913 MERGING MEDIA VIACOM AND PARAMOUNT GET TOGETHER TO FORM NEW INDUSTRY COLOSSUS BUT PLANNED 82 BILLION DEAL ALSO RAISES SPECULATION NEW SUITOR MAY EMERGE LEADERSHIP BATTLES EXPECTED BY WALL STREET JOURNAL STAFF REPORTERS LAURA LANDRO JOHNNIE L ROBERTS AND RANDALL SMITH NEW YORK FOUR YEARS AFTER BEGINNING THE MATING DANCE VIACOM INC HAS AGREED TO ACQUIRE PARAMOUNT COMMUNICATIONS INC THE 82 BILLION DEAL WOULD CREATE A MULTIMEDIA BEHEMOTH BUT THE END OF THIS RITUAL MAY BE JUST THE BEGINNING OF A BIGGER COURTSHIP BATTLE BY FINALLY PUTTING AN OFFER ON THE TABLE VIACOM ESSENTIALLY HAS PUT PARAMOUNT IN PLAY AND THERE MAY BE OTHER DEEPPOCKETED SUITORS CONSIDERING WHETHER TO TOP ITS BID OF 6914 PER SHARE COMPOSED OF 910 IN CASH AND THE BALANCE IN VIACOM STOCK IF THE DEAL IS COMPLETED THE BIG WINNER IS SUMNER REDSTONE THE 70YEAROLD CHAIRMAN AND CONTROLLING SHAREHOLDER OF VIACOM MR REDSTONE WOULD TAKE THE HELM OF THE NEW COMPANY AND PARAMOUNT CHAIRMAN AND CHIEF EXECUTIVE MARTIN DAVIS 66 WOULD REMAIN AS CEO BUT REPORT TO HIM MR REDSTONE WHO WAS WIDELY VIEWED AS PAYING TOO MUCH FOR VIACOM WHEN HE ACQUIRED IT FOR 34 BILLION IN 1987 WOULD HAVE 698 OF THE VOTING STOCK AND 385 OF THE EQUITY OF THE NEW PARAMOUNT VIACOM INTERNATIONAL INC MR REDSTONE HAS BEEN AN ACTIVE BUYER OF VIACOM STOCK IN RECENT MONTHS CONTRIBUTING TO A RECENT PRICE RUNUP AND MAKING IT A MORE VALUABLE CURRENCY WITH WHICH TO BUY PARAMOUNT EVEN THOUGH VIACOM HAS LESS THAN HALF THE REVENUE OF PARAMOUNT IT HAS A SLIGHTLY LARGER STOCKMARKET VALUE THIS WOULD BE THE LARGEST MEDIAINDUSTRY MERGER SINCE THE 1989 UNION THAT CREATED TIME WARNER INC AND IT WOULD CREATE A FORMIDABLE COMPETITOR TO BOTH TIME WARNER AND RUPERT MURDOCH'S NEWS CORP BY LINKING PARAMOUNT PICTURES SIMON & SCHUSTER MTV NETWORKS 12 BROADCAST STATIONS AND CABLE SYSTEMS SERVING 11 MILLION SUBSCRIBERS PARAMOUNT VIACOM WOULD BE ONE OF THE WORLD'S LEADING PRODUCERS AND DISTRIBUTORS OF FILMED ENTERTAINMENT CABLE PROGRAMMING AND PUBLISHED INFORMATION WITH ONLY 35 BILLION IN DEBT AND A STOCK MARKET VALUE OF ABOUT 15 BILLION IT WOULD BE FINANCIALLY ABLE TO ADD ACQUISITIONS OR START NEW BUSINESSES SUCH AS A FIFTH BROADCAST NETWORK WE HAVE PUT TOGETHER THE NO 1 SOFTWARE COMPANY IN THE WORLD A MONSTER ENTERTAINMENT COMPANY SAID MR REDSTONE YESTERDAY WE'VE SUCCEEDED IN CHANGING THE FACES OF OUR OWN COMPANIES AND IN CHANGING THE FACE OF THE MEDIA BUSINESS ADDED MR DAVIS IN A JOINT TELEPHONE INTERVIEW THIS IS THE BEST POSSIBLE DEAL FOR THE SHAREHOLDERS OF PARAMOUNT WITH THE STRENGTH OF OUR BALANCE SHEET WE HAVE UNLIMITED OPPORTUNITIES WE'RE NOT STOPPING HERE THE SALE OF PARAMOUNT WOULD CAP THE WAVE OF HOLLYWOOD STUDIO ACQUISITIONS THAT BEGAN IN THE 1980S WITH NEWS CORP'S PURCHASE OF FOX INC AND SAW UNIVERSAL STUDIOS AND COLUMBIA PICTURES GOBBLED UP BY JAPANESE ELECTRONICS GIANTS NOW AS TELEPHONE AND CABLE COMPANIES SCRAMBLE TO CONTROL THE MULTIMEDIA LANDSCAPE OF THE FUTURE AND AS GLOBAL OPPORTUNITIES FOR USMADE MOVIES AND TV PROGRAMMING SURGE SUPPLIERS OF PROGRAMMING AND INFORMATION LIKE PARAMOUNT ARE BECOMING SCARCE INDEED ONLY GIANT WALT DISNEY CO REMAINS AS A MAJOR HOLLYWOOD PLAYER NOT LINKED WITH A FOREIGN COMPANY OR A CABLE OR BROADCASTING POWER TELEPHONE AND CABLE COMPANIES SEEKING PROGRAMMING NOW MAY HAVE TO STRIKE DEALS WITH A STUDIO AS DID U S WEST WHICH IS SPENDING 25 BILLION FOR A 25 STAKE IN TIME WARNER'S ENTERTAINMENT OPERATIONS WITH THE DEAL ANNOUNCED YESTERDAY SPECULATION ALREADY IS RIFE THAT A RIVAL BID FOR PARAMOUNT MAY EMERGE POSSIBLY LED BY BARRY DILLER WHO RAN THE PARAMOUNT AND FOX STUDIOS AND IS NOW CHAIRMAN OF HOME SHOPPING COMPANY QVC NETWORKS INC HE MIGHT BE BACKED IN SUCH A MOVE BY JOHN MALONE WHO IS CHAIRMAN OF LIBERTY MEDIA INC A PART OWNER OF QVC AND CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE COMPANY MR DILLER DECLINED COMMENT AND LIBERTY AND MR MALONE COULDN'T BE REACHED BUT PEOPLE CLOSE TO THEM SAY THEY ARE KEENLY INTERESTED IN PARAMOUNT MR MALONE IN THE PAST HAS HELD UNSUCCESSFUL TALKS WITH PARAMOUNT ABOUT MERGING WITH TCI EARLIER THIS YEAR MESSRS DILLER AND MALONE REPORTEDLY PREPARED A BID IN THE RANGE OF 70 A SHARE FOR PARAMOUNT WITH A LARGER AMOUNT OF CASH THAN VIACOM IS OFFERING BUT THEY DELAYED THE BID TO COMPLETE THE LONGPLANNED MERGER OF QVC AND HOME SHOPPING NETWORK INC MR DAVIS REPORTEDLY WAS INCREASINGLY CONCERNED ABOUT THEIR INTENTIONS AND THUS MORE MOTIVATED TO FINALLY DO THE DEAL HE HAD BEEN TALKING ABOUT FOR SO LONG WITH VIACOM MESSRS REDSTONE AND DAVIS DENY THAT THEY HAVE ANYTHING TO FEAR FROM A RIVAL SUITOR SOMEONE CAN OFFER 2 MORE OR LESS PER SHARE BUT THEY CAN'T MATCH THE FUTURE CREATION OF VALUE FOR THE SHAREHOLDERS SAID MR REDSTONE NO ONE CAN OFFER THIS COMBINATION OR A STOCK WITH THE LONGTERM REWARDS OF PUTTING TOGETHER PARAMOUNT AND VIACOM AS FOR A BID FROM THE DEBTRIDDEN LIBERTY AND QVC HE WAS DISMISSIVE A DEAL FOR PARAMOUNT USING QVC OR LIBERTY STOCK FORGET IT INDEED SOME THINK THE TAKEOVER THREAT FROM MESSRS DILLER AND MALONE IS OVERPLAYED WITH THE HOME SHOPPING MERGER STILL INCOMPLETE IT WOULD BE TOUGH TO TAKE ON AN EXPENSIVE BATTLE FOR PARAMOUNT AND IT ISN'T CLEAR EITHER EXECUTIVE HAS THE STOMACH FOR AN ALLOUT BATTLE WITH MR DAVIS AND MR REDSTONE AT THE SAME TIME ONE PERSON CLOSE TO THE SITUATION SAYS THE APPROACHES MADE TO MR DAVIS BY THE DILLER AND MALONE CAMP WERE MERELY EXPLORATORY THERE WERE TALKS THEY WERE BRIEF THIS PERSON SAYS MARTY MISREAD IT HE IS CONJURING UP A DILLER TAKEOVER SCENARIO AND HE IS JUMPING THE GUN WITH THE VIACOM DEAL PARAMOUNT OBVIOUSLY WOULD HAVE TO CONSIDER A HIGHER OFFER BUT IT HAS STRONG DEFENSES IN PLACE TO COMPLETE THE MERGER IT WANTS WITH VIACOM PARAMOUNT HAS KEPT A POISON PILL IN PLACE DESIGNED TO MAKE AN UNWANTED TAKEOVER PROHIBITIVELY EXPENSIVE UNDER THE TERMS OF THE AGREEMENT WITH VIACOM MOREOVER PARAMOUNT HAS GRANTED VIACOM AN OPTION TO ACQUIRE ABOUT 20 OF PARAMOUNT'S COMMON STOCK AT 6914 PER SHARE AN OPTION THAT WOULD BE TRIGGERED WERE A RIVAL BID MADE ALSO IF THERE WERE A SUCCESSFUL RIVAL BID PARAMOUNT WOULD HAVE TO PAY VIACOM 100 MILLION IN THE BID AS IT STANDS FOR EACH OF PARAMOUNT'S 1185 MILLION SHARES VIACOM WILL PAY 01 SHARE OF ITS CLASS A VOTING STOCK AND 09 SHARE OF ITS CLASS B VOTING STOCK AS WELL AS 910 IN CASH SOME ANALYSTS SAY THAT IN A MORE CONVENTIONAL CASH PURCHASE PARAMOUNT SHOULD FETCH CLOSER TO ITS 77PERSHARE ASSET VALUE BUT ED HATCH AN ANALYST AT UBS SECURITIES SAYS THAT BY TAKING VIACOM STOCK AT A LESSER PRICE PARAMOUNT SHAREHOLDERS WOULD AVOID TAXES AND HAVE UPSIDE POTENTIAL IN THE COMBINED COMPANY MR HATCH NOTES THAT VIACOM HAS BEEN TRADING AT ABOUT 90 OF ITS ASSET VALUE OF ABOUT 68 PER SHARE MAKING IT AN ATTRACTIVE CURRENCY FOR VIACOM TO USE WHILE VIACOM OWNS CABLE NETWORKS LIKE MTV AND NICKELODEON AND BROADCAST AND CABLE PROPERTIES IT HAS NO CREATIVE PRODUCTION ENTITY SPENDING ONLY ABOUT 100 MILLION ANNUALLY TO MAKE PROGRAMMING FOR ITS VARIOUS NETWORKS PARAMOUNT BY CONTRAST OWNS A LEADING STUDIO THAT SPENDS UP TO 800 MILLION A YEAR TO PRODUCE MOVIES AND TV SHOWS PARAMOUNT GREATLY ENHANCES VIACOM'S ABILITY TO DEVELOP ORIGINAL PROGRAMMING WHICH IS THE KEY TO THE WHOLE BUSINESS IN THE FIRST PLACE MR HATCH SAYS WHILE MANY ON WALL STREET ARE HAILING THE MERGER AS A SYNERGISTIC BLEND THAT REWARDS PARAMOUNT HOLDERS WITH A NICE PREMIUM TO THE RECENT STOCK PRICE CRITICS OF THE DEAL SAY PARAMOUNT IS BEING ACQUIRED FOR A PRICE ONLY SLIGHTLY ABOVE WHERE ITS STOCK WAS IN 1989 AND THE CURRENCY SHAREHOLDERS ARE GETTING VIACOM STOCK HAS ALREADY MORE THAN DOUBLED IN THE PAST YEAR AND TRADES AT A LOFTY 16 TIMES CASH FLOW BECAUSE THERE IS NO PROVISION FOR PRICE PROTECTION PARAMOUNT HOLDERS COULD WIND UP WITH FAR LESS VALUE IF VIACOM STOCK SHOULD DECLINE BEFORE THE DEAL CLOSES PROBABLY NOT BEFORE 1994 PARAMOUNT WOULD BE HARD PRESSED TO TURN DOWN A HIGHER OFFER AS MR DAVIS LONG A VOCAL CHAMPION OF DELIVERING VALUE TO SHAREHOLDERS KNOWS ONLY TOO WELL IN 1989 HE TRIED TO BREAK UP THE STOCK MERGER OF TIME AND WARNER BY MAKING A 200ASHARE OFFER FOR TIME THOUGH HE FAILED TIME WAS FORCED TO SCRAP THE ORIGINAL MERGER PLAN AND TAKE ON NEARLY 14 BILLION IN DEBT TO ACQUIRE WARNER PARAMOUNT AND ITS SUPPORTERS ON WALL STREET CHARGED THAT TIME AND WARNER HAD SHORTCHANGED TIME'S STOCKHOLDERS IF A HIGHER OFFER MATERIALIZES FOR PARAMOUNT THEY ARE VULNERABLE FOR PRECISELY THE ARGUMENT NOTES ONE INVESTMENT BANKER MONEY MANAGER MARIO GABELLI WHOSE FUNDS OWN STAKES IN BOTH VIACOM AND PARAMOUNT SAYS MARTIN DAVIS OVERBID THE WARNERTIME DEAL AND SET A PRECEDENT THAT COULD NOW BE DONE TO HIM SOME ON WALL STREET CHARACTERIZED THE DEAL AS AN ACKNOWLEDGEMENT THAT MR DAVIS HAS BEEN UNABLE TO BUILD PARAMOUNT BY MAKING THE RIGHT ACQUISITIONS HIMSELF THOUGH ANALYSTS PRAISE PARAMOUNT'S ASSETS THEY HAVE BEEN IMPATIENT WITH THE FIRM'S FAILURE AFTER LOSING TIME INC TO MAKE ANOTHER BIG PURCHASE SUCH AS A CABLE SYSTEM OR A RECORD COMPANY MR DAVIS HAS BEEN EXPECTED TO MAKE A BIG ENTERTAINMENT DEAL SINCE HE REAPED MORE THAN 2 BILLION IN CASH FROM SELLING THE FINANCIALSERVICES UNIT OF WHAT HAD BEEN CALLED GULF & WESTERN WHILE PRAISING HIM FOR CLEANING UP THE CORPORATE DEBRIS FROM THE CONGLOMERATE BUILT BY HIS PREDECESSOR CHARLES BLUHDORN THEY SAY HE HASN'T BUILT THE COMPANY MEANINGFULLY INSTEAD THE COMPANY SPENT ABOUT HALF ITS CASH ON STOCK REPURCHASES AND ON SMALLER ACQUISITIONS SUCH AS A MIDSIZE THEME PARK OPERATOR AND SOME TV STATIONS AND PUBLISHING PROPERTIES PARAMOUNT'S EARNINGS HAVE ESSENTIALLY BEEN FLAT FOR THE PAST SEVERAL YEARS AND ITS STOCK PRICE HAD DECLINED FROM THE MID60S IN 1989 TO THE LOW 40S LESS THAN A YEAR AGO HOWEVER MR DAVIS OVER THE YEARS HAS HELD TALKS OF VARYING INTENSITY WITH VIRTUALLY EVERY POTENTIAL STRATEGIC PARTNER IN THE INDUSTRY INCLUDING TCI TURNER BROADCASTING SYSTEM INC GENERAL ELECTRIC CO'S NBC UNIT CHRISCRAFT INDUSTRIES INC AND CAPITAL CITIES/ABC INC PARAMOUNT PASSED ON GEFFEN RECORDS AS TOO PRICEY BEFORE IT WAS SOLD TO MCA INC IT ALSO DISCUSSED DEALS WITH THORN EMI PARENT OF CAPITOL RECORDS AND HELD EXPLORATORY TALKS WITH GERMAN MEDIA GIANT BERTELSMANN AG AND PHILIPS ELECTRONICS NV OF HOLLAND MANAGEMENT CONTROL WAS ONE STUMBLING BLOCK MR DAVIS WANTED A DEAL THAT LEFT HIM IN THE DRIVER'S SEAT WHILE HE HOLDS NO SIGNIFICANT STAKE IN PARAMOUNT MR DAVIS IS A STRONGWILLED EXECUTIVE WHO SPENT HIS CAREER AT ONE COMPANY TAKING OVER IN 1983 AFTER THE DEATH OF MR BLUHDORN AND RESHAPING GULF & WESTERN FROM AN UNWIELDY CONGLOMERATE INTO A STREAMLINED ENTERTAINMENT CONCERN IN THE 1980S MR DAVIS FENDED OFF TAKEOVER ADVANCES FROM CARL ICAHN AND IRWIN JACOBS AND HE HAS NEVER BEEN APPROACHED SINCE BY A HOSTILE BIDDER LONGTIME STOCK INVESTORS HAVE SEEN A SIZABLE APPRECIATION DESPITE THE RECENT LAG AND PEOPLE CLOSE TO MR DAVIS SAY HE COULD MUSTER THE SUPPORT OF INDIVIDUAL SHAREHOLDERS WITH UP TO 20 OF PARAMOUNT'S STOCK IN ANY BATTLE FOR CONTROL NOW HE WOULD BE PARTICULARLY LOATH FOR EXAMPLE TO GIVE UP THE COMPANY TO MR DILLER WHOM MR DAVIS ONCE OUSTED AS HEAD OF PARAMOUNT PICTURES HOW LONG MR DAVIS WILL STAY IN PLACE IF THE VIACOMPARAMOUNT MERGER GOES THROUGH IS ANYONE'S GUESS MANAGEMENT CONTROL ALSO WAS SAID TO BE A LONGSTANDING PROBLEM PREVENTING AN EARLIER MERGER WITH VIACOM BOTH SIDES DENY THAT WAS THE CASE SAYING THAT MR REDSTONE AGREED THAT MR DAVIS SHOULD STAY ON AS CHIEF EXECUTIVE AND VALUE WAS THE ONLY ISSUE IN EARLY DISCUSSIONS FOR EXAMPLE MR REDSTONE WAS SEEKING A STRAIGHT MERGER OF EQUALS IN WHICH HE WOULD PAY NO EXTRA CASH PEOPLE INVOLVED IN THE DEAL SAY ODD COUPLE MR REDSTONE AND MR DAVIS ARE SEEN AS AN UNLIKELY TEAM TO SHARE POWER BOTH ARE REGARDED AS AMONG THE TOUGHEST BOSSES IN THE INDUSTRY PRONE TO BURSTS OF TEMPER THE TWO EXECUTIVES HAVE KNOWN EACH OTHER FOR DECADES MR REDSTONE WAS A THEATER OWNER IN 1965 WHEN MR DAVIS THEN AN ASSISTANT TO MR BLUHDORN ASKED HIM TO LEAD A STOCKHOLDER COMMITTEE TO PROTECT THE COMPANY FROM A THREATENED TENDER OFFER BUT THEY HAVE BEEN AT LOGGERHEADS TOO IN THE LATE 1980S PARAMOUNT AND VIACOM BECAME EMBROILED IN A BITTER LAWSUIT OVER MOVIE RIGHTS ALTHOUGH THIS DEAL GIVES MR DAVIS THE TITLE OF CHIEF EXECUTIVE OFFICER MR REDSTONE CLEARLY WILL BE CALLING THE SHOTS AND CHOOSING TOP MANAGEMENT BY VIRTUE OF HIS OWNERSHIP STAKE MR REDSTONE MAINTAINS THAT MR DAVIS WILL BE AN INTEGRAL PART OF THE FUTURE MARTIN AND I WILL RUN THIS COMPANY TOGETHER WE'RE PARTNERS WE HAVE A SHARED STRATEGIC VISION AND A SHARED MANAGEMENT APPROACH MR REDSTONE SAYS IT WAS A HARDER DECISION FOR MARTIN THAN IT WAS FOR US HE HAS RUN THIS COMPANY HIMSELF AND THIS IS AN ACTION ON HIS PART THAT HE FELT WOULD TRULY SERVE PARAMOUNT SHAREHOLDERS WITHOUT REGARD TO HIS OWN INTERESTS BUT EVEN THE PEOPLE ON PARAMOUNT'S SIDE SAY MR DAVIS WILL BE SERVING AS A BRIDGE TO THE NEXT GENERATION THE POTENTIAL FOR CONFLICT ALREADY EXISTS BOTH VIACOM CHIEF EXECUTIVE FRANK BIONDI AND PARAMOUNT PRESIDENT STANLEY JAFFE WILL REMAIN AT THE COMBINED COMPANY ALONG WITH MESSRS DAVIS AND REDSTONE IN A TRANSITION TEAM AS MR REDSTONE'S CEO AT VIACOM MR BIONDI 48 IS SEEN BY MANY AS THE MORE LOGICAL SUCCESSOR TO MR DAVIS HE IS A TIME INC VETERAN WHO RAN ITS HOME BOX OFFICE UNIT AND OVERSAW COCACOLA CO'S TELEVISION OPERATIONS BEFORE THEY WERE SOLD TO SONY CORP WHILE MR BIONDI IS A STRONG FINANCIAL AND STRATEGIC EXECUTIVE MR JAFFE 52 IS A FORMER MOVIE PRODUCER WHO WAS MAKING FILMS FOR PARAMOUNT UNTIL HE TOOK HIS PRESENT JOB IN 1991 MR JAFFE IS CREDITED WITH TURNING AROUND PARAMOUNT'S MADISON SQUARE GARDEN UNIT AND BEEFING UP PRODUCTION AT THE STUDIO THE PARAMOUNT DEAL WOULD CEMENT MR REDSTONE'S REPUTATION AS ONE OF THE SHREWDEST INVESTORS IN THE ENTERTAINMENT INDUSTRY AND A TENACIOUS ONE TO BOOT MR REDSTONE WHO SURVIVED A 1979 BOSTON HOTEL FIRE BY HANGING ONTO A WINDOW LEDGE SEVERELY BURNING HIS HAND IS AN ATTORNEY BY TRAINING WHO STILL TEACHES OCCASIONALLY AT HARVARD LAW SCHOOL HE BUILT SOME FAMILYOWNED DRIVEINS INTO AN 800SCREEN CHAIN OF THEATERS NATIONAL AMUSEMENTS INC HE MADE HEFTY PROFITS INVESTING IN ENTERTAINMENT COMPANIES HIS BIG MOVE CAME IN A 1987 BIDDING WAR FOR VIACOM A TV COMPANY CREATED IN 1970 WHEN CBS INC WAS FORCED BY THE GOVERNMENT TO SPIN OFF ITS RERUN BUSINESS MR REDSTONE SWEETENED HIS PRICE THREE TIMES TO COMPETE WITH A MANAGEMENT LEVERAGEDBUYOUT PLAN TO RUN VIACOM HE RECRUITED MR BIONDI WHO HAS METHODICALLY PAID DOWN DEBT WHILE RIDING THE WAVE OF EXPANSION IN CABLE PROGRAMMING WITH VIACOM'S MTV NICKELODEON AND SHOWTIME NETWORKS IF THE DEAL ANNOUNCED YESTERDAY GOES THROUGH PARAMOUNT VIACOM INTERNATIONAL HAS SOME CHALLENGES AHEAD CRITICS CONTEND THAT THE PARAMOUNT PICTURES STUDIO IS STILL STRUGGLING TO TURN OUT A SUCCESSFUL SLATE OF FILMS AND REINVIGORATE ITS TV PRODUCTION ARM AFTER NBC'S CANCELLATION OF CHEERS VIACOM IS STRUGGLING WITH ITS SHOWTIME NETWORK AND IS TOO SMALL A PLAYER IN CABLE TV TO MAKE A DIFFERENCE IT WAS CLOSE TO A DEAL TO SELL ITS CABLE PROPERTIES TO SOUTHWESTERN BELL RECENTLY BUT ANALYSTS MAINTAIN THAT THE OPPORTUNITIES ARE MANY PARAMOUNT IS A LEADING EDUCATIONAL AND CONSUMER PUBLISHER AND IS PUSHING THAT BUSINESS INTO NEW ELECTRONIC AND INTERACTIVE MARKETS IT ALSO HAS HAD RECENT COMMERCIAL FILM SUCCESSES WITH THE FIRM AND INDECENT PROPOSAL IN TELEVISION PARAMOUNT HAS THREE NEW NETWORK SHOWS IN THE FALL LINEUP AND THE SUCCESSFUL SERIES WINGS IN SYNDICATION IT ALREADY HAS THE STRONGEST LINEUP OF SERIES PRODUCED FOR DIRECT SALE TO TELEVISION SUCH AS STAR TREK THE NEXT GENERATION DEEP SPACE NINE THE UNTOUCHABLES AND ENTERTAINMENT TONIGHT PARAMOUNT AND VIACOM COMBINED OWN 12 TV STATIONS THAT COULD HELP BE THE LAUNCHING PAD FOR A FIFTH BROADCAST NETWORK THE MERGED COMPANY'S BIGGEST STRENGTH WOULD BE ITS CABLE PROGRAMMING PARAMOUNT BRINGS A HALFINTEREST IN GIANT USA NETWORK AND IN THE FLEDGLING SCIFI CHANNEL AND COMPLETELY OWNS MADISON SQUARE GARDEN NETWORK WHICH BROADCASTS ITS KNICKS AND RANGERS SPORTS TEAMS' GAMES VIACOM HAS THE SHOWTIME MTV VH1 NICKELODEON AND NICK AT NITE NETWORKS AS WELL AS A HALFINTEREST IN THE COMEDY CHANNEL AND A THIRD OF THE LIFETIME NETWORK THE MTV NETWORKS GROUP IS THE FASTEST GROWING MAJOR CABLE NETWORK IN TERMS OF ADVERTISING WITH SALES GROWING AT 25 TO 35 ANNUALLY ALREADY DOMINANT IN THE CHILDREN'S AND YOUNG ADULT MARKETS IN THE US THE NETWORKS ARE EXPANDING RAPIDLY OVERSEAS MTV ALREADY REACHES 233 MILLION HOUSEHOLDS IN 77 MARKETS WORLDWIDE INCLUDING ASIA THE NETWORKS ARE NOW BEING LAUNCHED IN SOUTH AMERICA NICKELODEON LAST DECEMBER ENTERED A JOINT VENTURE WITH NEWS CORP'S BSKYB SATELLITE SERVICE TO LAUNCH THE SERVICE IN THE UK 9309130128 930913 FINANCING BUSINESS DOMINION TEXTILE INC DOMINION TEXTILE INC MONTREAL SAID ITS DOMINION TEXTILE USA INC UNIT PLANS TO OFFER 150 MILLION OF GUARANTEED SENIOR NOTES DUE 2003 THE NOTES WILL BE UNCONDITIONALLY GUARANTEED BY DOMINION TEXTILE INC AND WILL BE OFFERED BY UNDERWRITERS GOLDMAN SACHS & CO AND FIRST BOSTON CORP NET PROCEEDS WILL BE USED TO REFINANCE CERTAIN DEBT OF DOMINION TEXTILE USA INC AND FOR GENERAL CORPORATE PURPOSES THE OFFERING IS EXPECTED TO BE CONCLUDED DURING OCTOBER A REGISTRATION STATEMENT FOR THE OFFERING HAS BEEN FILED WITH THE US SECURITIES AND EXCHANGE COMMISSION 9309130127 930913 BAA AIRPORT TRAFFIC RISES 47 LONDON BAA PLC SAID PASSENGER TRAFFIC AT ITS SEVEN UK AIRPORTS ROSE 47 IN AUGUST FROM A YEAR EARLIER TO 86 MILLION PASSENGERS LONDON HEATHROW THE WORLD'S BUSIEST AIRPORT FOR INTERNATIONAL TRAFFIC HANDLED 47 MILLION PASSENGERS UP 61 FROM AUGUST 1992 BAA SAID BUT LONDON GATWICK CONTINUED TO BE TROUBLESOME REGISTERING A 02 DECLINE IN PASSENGERS TO 25 MILLION AT BAA'S THIRD LONDONAREA AIRPORT STANSTED PASSENGER TRAFFIC JUMPED 18 FROM A SMALL BASE TO 341900 BAA'S THREE SCOTTISH AIRPORTS EDINBURGH GLASGOW AND ABERDEEN COMBINED FOR ONE MILLION PASSENGERS IN AUGUST UP 69 FROM A YEAR EARLIER SOUTHAMPTON AIRPORT IN SOUTH ENGLAND HAD 46600 PASSENGERS UP 06 9309130126 930913 INTERNATIONAL WASHINGTON INSIGHT CLINTON MUST YET TAILOR FOREIGN POLICY TO NEW POSTCOLD WAR REALITIES IN ASIA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION STILL HASN'T ADJUSTED ITS FOREIGN POLICY TO POSTCOLD WAR REALITIES IN ASIA FOR MORE THAN FOUR DECADES THE US MAINTAINED A MUSCULAR MILITARY BULWARK IN THE REGION AGAINST THE SOVIET UNION THE MASSIVE US PRESENCE ALSO GUARANTEED STABILITY IN THE RAPIDLY GROWING AREA AND KEPT IN CHECK THE AMBITIONS AND HISTORIC ANIMOSITIES OF VARIOUS ASIAN COUNTRIES BUT NOW WITH THE GLOBAL THREAT GONE THE LOCAL RIVALRIES AND MUTUAL SUSPICION ARE GROWING MILITARY PLANNERS IN SOUTH KOREA FOR INSTANCE ARE BEGINNING TO WORRY MUCH MORE ABOUT JAPAN WHICH THEY VIEW AS TOMORROW'S ENEMY THAN ABOUT THEIR TRADITIONAL ENEMY NORTH KOREA JAPAN IS CONCERNED ABOUT THE GROWING MILITARY STRENGTH OF CHINA AND THE NOTTOODISTANT PROSPECT OF A UNIFIED KOREA POSSIBLY WITH NUCLEAR POTENTIAL SO SEOUL IS BUILDING NAVAL DESTROYERS AND BUYING SUBMARINES FROM GERMANY RATHER THAN BEEFING UP GROUND FORCES AS IT WOULD IF ITS MAJOR FEAR WERE A NORTH KOREAN LAND ATTACK JAPAN TOO IS ADDING TO ITS NAVAL FORCES IN PART BECAUSE OF THE PERCEPTION THAT THE US MILITARY PRESENCE WILL BE REDUCED OVER TIME CONCERNS ABOUT AN AMERICAN WITHDRAWAL COUPLED WITH BARGAINPRICE WEAPONS FROM RUSSIA ALSO HAVE IGNITED AN ARMS RACE AMONG PROSPEROUS SOUTHEAST ASIAN NATIONS FOR INSTANCE MALAYSIA RECENTLY ANNOUNCED THAT IT MAY BUY FIGHTER AIRCRAFT FROM BOTH THE US AND MOSCOW THE ADMINISTRATION SEEMS UNSURE HOW TO DEAL WITH THIS NEW WORLD IT SAYS IT WANTS TO FORGE STRONG REGIONAL ALLIANCES WITH WASHINGTON AT THE CENTER BUT SO FAR US ACTIONS ARE SENDING MIXED SIGNALS SECRETARY OF STATE WARREN CHRISTOPHER WENT TO THE REGION IN JULY AND PROCLAIMED THAT ASIA WAS A TOP US PRIORITY BUT HE WEAKENED HIS OWN CASE BY CUTTING HIS VISIT SHORT TO TEND TO MIDEAST BUSINESS THE PENTAGON'S RECENT DECISION TO DESIGN THE US MILITARY TO FIGHT TWO CONFLICTS NEARLY SIMULTANEOUSLY HAS ANGERED SOUTH KOREANS THEY BELIEVE THAT NORTH KOREA WOULDN'T ATTACK THEM UNLESS THE US ALREADY WAS ENGAGED ELSEWHERE SO THEY FEAR THAT THE NEW US DOCTRINE MEANS WASHINGTON WOULD CONCENTRATE ON ITS OTHER ADVERSARY FIRST AND TREAT THEM AS A SECONDARY PRIORITY THERE'S A GULF BETWEEN WORDS AND ACTIONS AND IT DOESN'T LEAVE ASIANPACIFIC PEOPLE FEELING VERY COMFORTABLE SAYS SETH CROPSEY DIRECTOR OF ASIAN STUDIES AT THE HERITAGE FOUNDATION WHAT CAN THE US DO TO RETAIN A CENTRAL ROLE IN ASIA WASHINGTON MUST BUILD ITS BILATERAL RELATIONSHIPS INTO EFFECTIVE MULTILATERAL ORGANIZATIONS WITH ITS BIGGEST ASSET IN ASIA ITS MILITARY ROLE CERTAIN TO DIMINISH THE US MUST ANCHOR ITSELF IN A WEB OF OVERLAPPING REGIONAL INSTITUTIONS SAYS ROBERT MANNING A FORMER STATE DEPARTMENT OFFICIAL NOW AT THE SIGUR CENTER FOR EAST ASIAN STUDIES AT GEORGE WASHINGTON UNIVERSITY OF COURSE MANY ASIANS WORRY THAT MR CLINTON'S VERSION OF MULTILATERALISM WON'T WORK ANY BETTER IN ASIA THAN IT HAS IN BOSNIA HE WILL HAVE A CHANCE TO PERSUADE THEM OTHERWISE AND SHOW THAT HE INTENDS TO PAY SUSTAINED ATTENTION TO ASIA WHEN HE CONVENES A MEETING OF THE REGION'S HEADS OF STATE IN SEATTLE IN NOVEMBER THE 15MEMBER ASIAPACIFIC ECONOMIC COOPERATION ORGANIZATION FOCUSES MOSTLY ON REGIONAL TRADE AND INVESTMENT BUT MR CLINTON COULD GIVE IT MORE OF A POLITICAL DIMENSION BY USING IT TO BUILD A REGULAR FORUM AT WHICH HEADS OF STATE COULD DISCUSS A WIDE VARIETY OF REGIONAL ISSUES JUST AS THE GROUP OF SEVEN INDUSTRIALIZED NATIONS DO AT THEIR ANNUAL SUMMIT THE US HAS OTHER OPPORTUNITIES TO FORGE MULTILATERAL COOPERATION IN ASIA PERHAPS THE MOST IMPORTANT WOULD BE TO HELP BRING THE US CHINA JAPAN AND RUSSIA TOGETHER TO ADDRESS THE CONCERNS OF NORTHEAST ASIA SUCH A FORUM WHICH INITIALLY COULD DISCUSS THE THORNY PROBLEMS OF THE KOREAN PENINSULA COULD HELP QUELL POSTCOLD WAR JITTERS IN THE REGION OTHER RELEVANT TOPICS WOULD BE DEFENSE SPENDING MARITIME AND ENVIRONMENTAL ISSUES AND EVEN THE REMARKABLE BUT GROWING CONCERN IN THE REGION THAT JAPAN MIGHT SOME DAY USE ITS PLUTONIUMREPROCESSING CAPABILITIES TO BECOME A NUCLEAR POWER MR CLINTON WOULD HAVE TO OVERCOME ISOLATIONIST SENTIMENT IN THE US AND HIS OWN PREOCCUPATION WITH DOMESTIC AFFAIRS TO PURSUE SUCH A ROLE IN ASIA BUT THE CASE FOR SUCH ACTIVISM MAY BE EASIER TO MAKE FOR THE ASIAPACIFIC REGION WITH WHICH US TRADE HAS SOARED TO 316 BILLION IN 1991 FROM 80 BILLION IN 1978 FOR CLINTON WHO IS FOCUSING ON THE ECONOMY IT'S GOT LOGIC SAYS MR MANNING ASIA IS A SEAMLESS WEB IN THE EXTENSION OF HIS DOMESTIC AGENDA 9309130125 930913 CREDIT RATINGS IBM CORP UNITS SEE SENIOR DEBT RATINGS CUT BY DUFF & PHELPS NEW YORK DUFF & PHELPS CREDIT RATING CO DOWNGRADED THE SENIOR DEBT RATING OF INTERNATIONAL BUSINESS MACHINES CORP AND SEVERAL OF ITS UNITS ABOUT 32 BILLION IN DEBT IS AFFECTED DUFF & PHELPS LOWERED THE SENIOR DEBT RATING TO SINGLEA FROM DOUBLEAMINUS DUFF & PHELPS SAID THAT ALTHOUGH THE SUBSTANTIAL RESTRUCTURING CHARGES TAKEN BY THE ARMONK NY COMPUTER GIANT IN 1992 AND 1993 WILL RESULT IN CONSIDERABLE COST SAVINGS IT EXPECTS IBM TO HAVE SIGNIFICANT CASH OUTFLOW FOR THE REMAINDER OF THIS YEAR AND 1994 MOREOVER THE RATINGS AGENCY WARNED THAT THE HIGHLY COMPETITIVE COMPUTER MARKET COULD LIMIT OR DELAY EXPECTED BENEFITS FROM THE COMPANY'S DOWNSIZING STILL DUFF & PHELPS WHICH WAS THE FIRST MAJOR RATINGS AGENCY TO STRIP IBM OF ITS TRIPLEA RATING BACK IN APRIL 1990 IS CONFIDENT THAT IT WON'T HAVE TO DOWNGRADE IBM AGAIN IN THE NEAR FUTURE WE THINK WE'VE FOUND WHERE THE BOTTOM IS SAID DAN DONOGHUE SENIOR VICE PRESIDENT CORPORATE RATINGS AT DUFF & PHELPS THIS INDUSTRY IS PLAGUED BY RAPID CHANGE BUT WE STILL FIRMLY BELIEVE THAT IBM HAS THE RESOURCES AND PERSONNEL TO REALIGN THEIR BUSINESSES TO BE COMPETITIVE DUFF & PHELPS ALSO LOWERED THEIR RATINGS ON IBM CREDIT CORP IBM INTERNATIONAL FINANCE NV IBM ASSOCIATES LP IBM JAPAN LTD MOODY'S INVESTORS SERVICE INC RATES IBM'S SENIOR DEBT SINGLEA3 AND STANDARD & POOR'S CORP RATES THE COMPUTER CONCERN'S DEBT SINGLEA IBM DECLINED TO COMMENT ON THE DOWNGRADE 9309130124 930913 CHICAGO MERC ISSUES SUSPENSION TO TRADER CONVICTED OF FRAUD CHICAGO THE CHICAGO MERCANTILE EXCHANGE SAID ITS BOARD OF GOVERNORS SUSPENDED FOR TWO YEARS THE TRADING PRIVILEGES OF A YEN TRADER WHO WAS CONVICTED OF FEDERAL MAILFRAUD CHARGES IN AN INSURANCE SCAM IN A SETTLEMENT WITH THE MERC JUDD HIRSCHBERG NEITHER ADMITTED NOR DENIED VIOLATING THE EXCHANGE RULE AGAINST ACTS SUBSTANTIALLY DETRIMENTAL TO THE INTEREST OR WELFARE OF THE EXCHANGE IN MARCH 1991 A FEDERAL JURY CONVICTED MR HIRSCHBERG ALONG WITH EURODOLLAR TRADER RICHARD LOWRANCE OF FAKING THE 1984 THEFT OF MR HIRSCHBERG'S MERCEDESBENZ TO POCKET 43300 IN INSURANCE PROCEEDS THE CAR WAS DISCOVERED IN FLORIDA IN 1989 REPAINTED AND UNDER A DIFFERENT VEHICLE IDENTIFICATION NUMBER REGISTERED TO MR LOWRANCE'S MOTHER ATTORNEYS FOR THE MEN HAD SAID THE FEDERAL PROSECUTION ON THE INSURANCE FRAUD CASE WAS AIMED AT PRESSURING THE FUTURES TRADERS IN AN EFFORT TO FIND POTENTIAL INFORMANTS FOR ITS INVESTIGATION OF THE CHICAGO FUTURES MARKETS BECAUSE OF MR HIRSCHBERG'S CONVICTION ON THE FOUR MAILFRAUD COUNTS THE MERC COMMITTEE SUSPENDED HIS TRADING PRIVILEGES BUT BECAUSE CREDIT WAS GIVEN FOR THE TWOYEAR PERIOD BEGINNING JULY 17 1991 HIS PRIVILEGES ARE NOW BACK IN FORCE THE COMMITTEE ALSO ORDERED MR HIRSCHBERG TO COMPLY WITH HIS UNDERTAKING TO TRADE ONLY FOR HIS OWN ACCOUNT AS WELL AS SUPERVISION STIPULATIONS TO WHICH HE AGREED AS PART OF THE SETTLEMENT 9309130123 930913 INTERNATIONAL SPAIN'S UNEMPLOYMENT RATE MADRID THE PERCENTAGE OF SPAIN'S TOTAL WORK FORCE REGISTERED AS UNEMPLOYED WITH THE NATIONAL EMPLOYMENT INSTITUTE INCHED DOWN TO 162 IN AUGUST FROM 164 IN JULY THE LABOR MINISTRY SAID THE MINISTRY SAID THE NUMBER OF PEOPLE REGISTERED AS OUT OF WORK FELL BY 10 OR 25233 PEOPLE TO 2470000 BY THE END OF AUGUST 9309130122 930913 MARGARETTEN FORECASTS THIRDPERIOD LOSS CITING REFINANCINGS PERTH AMBOY NJ MARGARETTEN FINANCIAL CORP SAID IT EXPECTS TO REPORT A LOSS FOR BOTH THE THIRD QUARTER AND THE NINE MONTHS CITING FALLING INTEREST RATES THAT HAVE PROMPTED MORTGAGE PREPAYMENTS THE MORTGAGEORIGINATION AND SERVICING COMPANY SAID IT WOULD INCREASE AMORTIZATION EXPENSE FOR MORTGAGESERVICING RIGHTS TO 35 MILLION FOR THE THIRD QUARTER AND ESTABLISH A 25 MILLION PROVISION AGAINST FUTURE SIMILAR COSTS MORTGAGE COMPANIES WHICH PAY A PREMIUM TO ACQUIRE THE RIGHT TO SERVICE A MORTGAGE AMORTIZE THAT COST OVER THE NUMBER OF YEARS THEY EXPECT TO SERVICE THE MORTGAGE WHEN CONSUMERS REFINANCE THEY REDUCE THE LENGTH OF TIME MORTGAGE COMPANIES COLLECT SERVICING FEES THUS AMORTIZATION EXPENSE HAS ESCALATED DRAMATICALLY SAID FELIX BECK CHAIRMAN AND CHIEF FINANCIAL OFFICER IN 1992'S THIRD QUARTER MARGARETTEN EARNED 67 MILLION OR 44 CENTS A SHARE ON 489 MILLION IN REVENUE THE COMPANY DOESN'T PUBLICLY BREAK OUT THE PERCENTAGE OF ITS INCOME DERIVED FROM PURCHASED SERVICING RIGHTS MARGARETTEN ALSO DERIVES REVENUE FROM RETAIL ORIGINATION AND WHOLESALE PURCHASE OF MORTGAGES ORIGINATED BY BROKERS THE COMPANY REPORTED THAT LOANPRODUCTION ACTIVITY THROUGH AUGUST TOTALED 7 BILLION UP 55 FROM THE YEAREARLIER PERIOD TO SHOW CONFIDENCE IN THE COMPANY'S STOCK DIRECTORS AUTHORIZED A REPURCHASE OF UP TO TWO MILLION SHARES OR 13 OF OUSTANDING STOCK MARGARETTEN ALSO SAID IT PLANS TO ISSUE UP TO 40 MILLION OF PREFERRED STOCK IN A PUBLIC OFFERING ITS STOCK CLOSED FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 1350 A SHARE DOWN 50 CENTS 9309130121 930913 BUSINESS BRIEF SECOND OFFERING OF GENERAL INSTRUMENT IS BEING PROPOSED BY FORSTMANN LITTLE CHICAGO FORSTMANN LITTLE AND CO A NEW YORK INVESTMENT FIRM COULD RAISE MORE THAN 260 MILLION THROUGH A PROPOSED SECONDARY OFFERING OF GENERAL INSTRUMENT INC SHARES ACCORDING TO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE OFFERING WOULD BE FORSTMANN'S SECOND THIS YEAR AND WOULD SUBSTANTIALLY REDUCE ITS STAKE IN THE MAKER OF CABLE AND SATELLITE TELEVISION EQUIPMENT ACCORDING TO THE SEC FILING FORSTMANN AND ITS AFFILIATES ARE PROPOSING THE SALE OF 51 MILLION SHARES IN GENERAL INSTRUMENT IT FOLLOWS A SECONDARY OFFERING IN MARCH IN WHICH FORSTMANN RAISED 305 MILLION FROM THE SALE OF 10 MILLION GENERAL INSTRUMENT SHARES AT 3050 A SHARE THE 260 MILLION IS BASED ON THE CLOSING PRICE OF GENERAL INSTRUMENT'S SHARES ON FRIDAY THEY CLOSED AT 52125 DOWN 2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING OTHER GENERAL INSTRUMENT HOLDERS WILL SELL THE REMAINING 550000 SHARES OF THE 56 MILLION SHARE OFFERING ACCORDING TO THE FILING FORSTMANN AFFILIATES WHICH HOLD 409 OF THE COMPANY'S STOCK WILL HAVE A 324 POSITION AFTER THE SALE ON A FULLY DILUTED BASIS HOWEVER FORSTMANN'S STAKE WILL FALL TO ABOUT 21 FROM 48 GENERAL INSTRUMENT'S SHARES HAVE RISEN STEADILY IN THE LAST NINE MONTHS MORE THAN DOUBLING IN VALUE SINCE JANUARY FORSTMANN WHICH TOOK GENERAL INSTRUMENT PRIVATE IN 1990 IN A 15 BILLION LEVERAGED BUYOUT PAID 550 A SHARE FOR ITS CONTROLLING STAKE GOLDMAN SACHS & CO AND MERRILL LYNCH & CO ARE UNDERWRITERS 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 9309130120 930913 FORMER CHIEF OF UNION AT BOEING CO PLEADS GUILTY TO EMBEZZLING SEATTLE THE FORMER CHIEF OF BOEING CO'S LARGEST UNION PLEADED GUILTY IN FEDERAL COURT TO TWO COUNTS OF EMBEZZLING FROM THE LABOR ORGANIZATION AND AGREED TO PAY THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS MORE THAN 33000 IN RESTITUTION TOM BAKER WHO RAN THE UNION'S DISTRICT 751 FOR THREE FOURYEAR TERMS AND WITHDREW HIS REELECTION BID LAST YEAR FACES A MAXIMUM PENALTY OF FIVE YEARS IN JAIL AND 500000 IN FINES HE WAS ACCUSED OF A SCHEME IN WHICH HE BILLED THE UNION FOR FIRSTCLASS AIRPLANE TICKETS FOR BUSINESS TRIPS THEN FLEW COACH CLASS AND POCKETED THE DIFFERENCE ALTHOUGH MR BAKER WAS ONLY CHARGED WITH TWO COUNTS HE AGREED TO PAY BACK THE UNION FOR 25 SUCH BUSINESS TRIPS WHICH INVESTIGATORS SAY HE USED FOR THE SCHEME SINCE STEPPING DOWN FROM HIS POSITION AS DISTRICT PRESIDENT MR BAKER HAD SERVED IN AN ADMINISTRAIVE JOB FROM WHICH HE WAS SUSPENDED WITHOUT PAY LAST THURSDAY AS A RESULT OF THE PLEA MR BAKER 56 YEARS OLD IS BARRED FROM UNION ACTIVITIES FOR UP TO 13 YEARS MR BAKER LED THE UNION THROUGH SEVERAL CONTRACT NEGOTIATIONS AND A 48DAY STRIKE IN 1989 BILL JOHNSON THE NEW PRESIDENT OF THE DISTRICT WHICH REPRESENTS SOME 32000 ACTIVE BOEING WORKERS WAS MEETING WITH BOEING WORKERS AND UNAVAILABLE FOR COMMENT A SPOKESMAN SAID IN A STATEMENT MR JOHNSON SAID NEW REIMBURSEMENT PRACTICES FOR AIR TRAVEL HAD BEEN PUT INTO EFFECT AND PRAISED MR BAKER FOR HIS ROLE IN NEGOTIATING WAGE INCREASES HE SAID TOTALED MORE THAN 200 MILLION 9309130119 930913 BUSINESS BRIEFS WELLS FARGO BANK A SUBSIDIARY OF WELLS FARGO & CO PROVIDED GOTTSCHALKS INC WITH A 115 MILLION REVOLVING CREDIT FACILITY SYMIX SYSTEMS INC EXTENDED UNTIL NOV 30 ITS PROGRAM TO REPURCHASE SHARES ON THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS IT ALSO INCREASED THE NUMBER OF SHARES THAT MAY BE PURCHASED TO 400000 FROM 200000 CABOT OIL & GAS CORP AGREED TO PURCHASE INTERESTS IN 25 PRODUCING WELLS AND CERTAIN GAS GATHERING FACILITIES FROM CNG TRANSMISSION CORP OF CLARKSBURG WVA TERMS WEREN'T DISCLOSED 9309130117 930913 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST BOND FUNDS WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED FNET DILUTION FROM RIGHTS OFFERING VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE 9309130116 930913 THE CLINTON HEALTH PLAN MEDICAL INDUSTRY SCRAMBLES TO KEEP UP WITH CHANGES BY RON WINSLOW AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S HEALTH PROPOSAL LANDS IN THE MIDDLE OF A MEDICAL MARKETPLACE ALREADY REELING IN RESPONSE TO PRIVATESECTOR INITIATIVES AND BROAD PUBLIC CONCERNS OVER THE SOARING COSTS OF HEALTH CARE ACROSS THE COUNTRY HOSPITALS ARE FORGING ALLIANCES WITH FORMER COMPETITORS AND DEVELOPING NEW RELATIONSHIPS WITH DOCTORS IN A SCRAMBLE TO PROTECT THEIR MARKETS THE CONCEPT OF ORGANIZED DELIVERY SYSTEMS THAT CAN DELIVER CRADLETOGRAVE MEDICAL SERVICES ALL UNDER ONE UMBRELLA ORGANIZATION IS REPLACING THE SOLO PRACTITIONER AND THE INDEPENDENT COMMUNITY HOSPITAL MEANWHILE THE NATION'S HEALTHINSURANCE INDUSTRY AFTER YEARS OF MAKING MONEY BY PROCESSING CLAIMS IS STRUGGLING FOR SURVIVAL AS PURCHASERS BEGIN TO WEAN THEMSELVES FROM TRADITIONAL FEEFORSERVICE MEDICINE AND ASK THAT INSURERS NOT ONLY HELP FINANCE CARE BUT DELIVER IT AS WELL AND MEDICAL SUPPLIERS ARE BRINGING INSTRUMENTS AND DEVICES TO MARKET UNDER FASTCHANGING GROUND RULES THAT SAY NEW PRODUCTS ARE NO PRODUCTS UNLESS THEY IMPROVE CARE AND SAVE MONEY THERE'S NO QUESTION THERE WILL BE A REVOLUTION IN HEALTH CARE REGARDLESS OF WHAT THE GOVERNMENT DOES SAYS JEROME GROSSMAN CHIEF EXECUTIVE OFFICER OF NEW ENGLAND MEDICAL CENTER IN BOSTON AMONG THE MOST INFLUENTIAL CHANGES SAYS DR GROSSMAN WILL BE A WIDESPREAD SWITCH TO SOCALLED CAPITATION SYSTEMS WHICH CHARGE FIXED PRICES FOR TREATING PATIENTS' HEALTH NEEDS OVER MONTHS OR YEARS INSTEAD OF THE CURRENT SYSTEM OF CHARGING SEPARATELY FOR EACH MEDICAL SERVICE BY PROPOSING TO POOL THE PURCHASING OF HUNDREDS OF THOUSANDS OF CONSUMERS INTO REGIONAL ALLIANCES THE PLAN DRAFTS OF WHICH WERE CIRCULATED LAST WEEK IN THE VIEW OF MANY EXPERTS IS EXPECTED TO ACCELERATE THESE MARKET FORCES BUT COMING AS IT DOES WITH A HEAVY DOSE OF REGULATION AND PROVISIONS FOR SPENDING RESTRAINTS AND FACING A VETTING IN CONGRESS OVER THE NEXT YEAR HOW THE PLAN AND THE MARKETPLACE WILL MIX IS FAR FROM CLEAR WE'RE GOING TO SEE A CONSTANT POINTBYPOINT NEGOTIATION AS THE PLAN WORKS ITS WAY THROUGH CONGRESS PREDICTS DR GROSSMAN MY GREATEST CONCERN IS THAT WE WILL END UP WITH A FRAGMENTED CHAOTIC PROGRAM AND THAT ALL THE EXCITING CHANGES HAPPENING RIGHT NOW COULD BE DISRUPTED WHAT FOLLOWS IS A SAMPLING OF THE LIKELY IMPACT OF THE PLAN AS IT CURRENTLY IS DRAFTED ON SOME MAJOR SEGMENTS OF THE HEALTHCARE INDUSTRY THE KEY TO ALMOST ANY HEALTH REFORM PLAN IS TO EFFECTIVELY ENCOURAGE DOCTORS TO PRACTICE COSTEFFECTIVE MEDICINE CHANGES CURRENTLY ENVISIONED BY PRESIDENT CLINTON WOULD COMPEL THEM TO JOIN LARGER GROUPS OF PHYSICIANS AND ENTER MORE FORMAL ARRANGEMENTS WITH HOSPITALS HEALTH NETWORKS OR HEALTH MAINTENANCE ORGANIZATIONS THE ERA OF THE SOLO PRACTITIONER IS ALL BUT DONE AWAY WITH SAYS ALAN L HILLMAN DIRECTOR OF THE CENTER FOR HEALTH POLICY AT THE UNIVERSITY OF PENNSYLVANIA'S LEONARD DAVIS INSTITUTE INDIVIDUAL PHYSICIANS WON'T BE ABLE TO COMPETE WITH MORE EFFICIENT LARGE GROUP PRACTICES AND PHYSICIANHOSPITAL ORGANIZATIONS DOCTORS MAY ALSO FACE GREATER MONITORING OF THEIR WORK BY OUTSIDERS IN THE NAME OF IMPROVING QUALITY OR AVOIDING OVERUSE OF SERVICES THE CLINTON PLAN IMPLIES CONSIDERABLE SUPERVISION OF DOCTORS BY LAY PEOPLE SAYS UWE REINHARDT A HEALTH ECONOMICS PROFESSOR AT PRINCETON UNIVERSITY THAT WILL DIVERT INCOME FROM PEOPLE WHO LAY HANDS ON PEOPLE TO PEOPLE WHO SUPERVISE DOCTORS ON THE OTHER HAND DOCTORS WHO GIVE UP SOME AUTONOMY TO JOIN SOME HMOS OR OTHER GROUP PRACTICES MAY REDUCE SUCH OVERSIGHT A GROWING NUMBER OF HMOS AND OTHER GROUP PRACTICES ARE ADOPTING PRACTICE GUIDELINES FOR PROCEDURES AND REDUCING MICROMANAGEMENT OF DOCTORS' DECISIONS THE CLINTON PLAN ESPECIALLY THE CONTROVERSIAL AND NEGOTIABLE PROPOSAL TO SHARPLY CONTAIN GROWTH IN MEDICARE AND MEDICAID SPENDING WOULD SQUEEZE PHYSICIAN INCOME OTHER ASPECTS WILL REWARD AND ENCOURAGE PRIMARYCARE DOCTORS WHILE REDUCING USE OF HIGHCOST SPECIALISTS IF THE PLAN IS UNDERFUNDED AS MOST OBSERVERS NOW BELIEVE IT HAS TO TRANSLATE IN A VERY SHORT TIME INTO A PROBLEM OF PHYSICIAN MORALE WARNS EDWARD FX HUGHES A PHYSICIAN AND DIRECTOR OF THE CENTER FOR HEALTH SERVICES AND POLICY RESEARCH AT NORTHWESTERN UNIVERSITY EVANSTON ILL THERE'S NOTHING IN THE ORGANIZATIONAL LITERATURE THAT SAYS A SUCCESSFUL ENTERPRISE RUNS WELL WITH UNHAPPY WORKERS HOSPITALS TOO WOULD BE HIT BY REDUCED MEDICARE SPENDING THE AMERICAN HOSPITAL ASSOCIATION SAYS ABOUT 70 OF HOSPITALS WILL LOSE MONEY THIS YEAR CARING FOR MEDICARE PATIENTS SINCE THE FEDERAL PROGRAM FOR THE ELDERLY ACCOUNTS FOR AT LEAST 40 OF REVENUE FOR MANY HOSPITALS IMPROVING EFFICIENCY BOTH BY TRIMMING ADMINISTRATIVE COSTS AND DEVELOPING STRONGER RELATIONS WITH DOCTORS WILL BE CRUCIAL TO THEIR FINANCIAL HEALTH INDEED A LIKELY AREA OF CONTROVERSY FOR THE HOSPITAL INDUSTRY IS HOW QUICKLY THE GROWTH RATE IN OVERALL MEDICAL SPENDING CAN BE CUT THE WHITE HOUSE PLAN ENVISIONS THAT HEALTH ALLIANCE SPENDING WILL RISE IN 1996 BY THE CONSUMER PRICE INDEX PLUS 15 PERCENTAGE POINTS FROM 1997 ONWARD THE ADMINISTRATION ADDS THAT RATE WILL CLIMB ONLY IN LINE WITH THE CPI IN RECENT YEARS MEDICAL SPENDING HAS RISEN AS MUCH AS EIGHT TO 10 PERCENTAGE POINTS FASTER THAN THE CONSUMER PRICE INDEX THE BIGGEST SHARE OF THAT SPENDING IS IN HOSPITALS AND WHILE HOSPITAL EXECUTIVES SAY THEY ARE HARD AT WORK ON COSTCUTTING PLANS THEY QUESTION HOW FAST SPENDING GROWTH CAN BE REINED IN WITHOUT HURTING THE QUALITY OF CARE OUR EXPENSES WENT UP 5 TO 8 LAST YEAR SAYS THE NEW ENGLAND MEDICAL CENTER'S DR GROSSMAN WHILE HE BELIEVES THE RATE OF MEDICAL SPENDING CAN BE SLOWED CONSIDERABLY HE SUGGESTS THAT IT COULD BE DIFFICULT TO TRIM IT MUCH MORE THAN A PERCENTAGE POINT A YEAR ANOTHER DILEMMA FOR HOSPITALS WHOSE MARKETS TRANSCEND STATE BOUNDARIES IS THE INSISTENCE IN THE PLAN THAT HEALTH ALLIANCES ADHERE TO STATE BORDERS SAYS JOHN M EISENBERG CHAIRMAN OF MEDICINE AT GEORGETOWN UNIVERSITY MEDICAL CENTER WASHINGTON THAT COULD CAUSE PROBLEMS FOR BIG ACADEMIC RESEARCH CENTERS THAT COUNT ON OUTOFSTATE REFERRALS FOR MUCH OF THEIR BUSINESS AND IT COULD INHIBIT RATHER THAN PROMOTE DEVELOPMENT OF MEDICAL CENTERS OF EXCELLENCE DR EISENBERG SAYS WHERE TECHNOLOGY AND EXPERTISE FOR HIGHCOST COMPLEX PROCEDURES ARE CONCENTRATED AT A LIMITED NUMBER OF HOSPITALS TO REDUCE COSTS AND IMPROVE QUALITY THE CLINTON PLAN COULD FORCE HUNDREDS OF HEALTH INSURERS OUT OF BUSINESS BUT MAKE THE INDUSTRY GIANTS EVEN BIGGER THERE ARE NOW MORE THAN 500 HEALTH INSURERS BUT THE CLINTON PLAN MAKES IT TOUGH TO CONTINUE TO PAY FOR HEALTH CARE IN THE TRADITIONAL WAY BY HAVING THE INSURANCE COMPANY PAY FOR WHATEVER A DOCTOR OR HOSPITAL CHOOSES TO BILL INSTEAD IT WANTS PEOPLE TO GET THEIR HEALTH CARE THROUGH HEALTH MAINTENANCE ORGANIZATIONS AND OTHER NETWORKS THAT HAVE DOCTORS ON CONTRACT IN THAT SORT OF ARENA ONLY BIG INSURANCE COMPANIES WITH THE RESOURCES TO SIGN UP HUNDREDS OF DOCTORS CAN COMPETE NOT ALL HEALTH INSURERS WILL BE HURT HOWEVER THE NATION'S BIGGEST HEALTH INSURERS PRUDENTIAL INSURANCE CO OF AMERICA METROPOLITAN LIFE INSURANCE CO CIGNA CORP AETNA LIFE & CASUALTY CORP TRAVELERS CORP AND THE NATION'S BLUE CROSS AND BLUE SHIELD ORGANIZATIONS COULD EMERGE STRONGER THAN EVER SOME SMALLER PLAYERS SHOULD ALSO SURVIVE PARTICULARLY THOSE THAT SPECIALIZE IN NICHES UNTOUCHED BY THE CLINTON PLAN AND THOSE THAT INSURE PEOPLE IN RURAL AREAS NOT SERVED BY HMOS EXPERTS ARE DIVIDED ABOUT THE PROSPECTS FOR MEDICALEQUIPMENT MAKERS ROBERT MANN A PROFESSOR OF BIOMEDICAL ENGINEERING AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY PREDICTS THAT WORK ON NEW DEVICES WILL CONTINUE BRISKLY DESPITE THE CLINTON ADMINISTRATION'S EFFORTS TO HOLD DOWN COSTS IT WILL BE VERY DIFFICULT TO PREVENT THE ONSET OF NEW MEDICAL TECHNOLOGY PROF MANN SAYS AMONG PROJECTS THAT HE EXPECTS TO ROLL FORWARD ARE DEVELOPMENT OF SYNTHETIC CARTILEGE AND WAYS TO DELIVER INSULIN TO DIABETICS VIA SLOWRELEASE PATCHES INSTEAD OF INJECTIONS INNOVATORS' DESIRE TO COME UP WITH SUCH BREAKTHROUGHS IS INSATIABLE PROF MANN CONTENDS BUT THE HEAD OF A LEADING MEDICAL EQUIPMENT COMPANY IS MORE CAUTIOUS JOHN BROWN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STRYKER CORP PREDICTS THAT HEALTHCARE PROVIDERS WILL FORCE SUPPLIERS TO DELIVER MORE FOR LESS COST WILL BECOME A MAJOR ISSUE STRYKER MAKES SURGICAL EQUIPMENT ARTIFICIAL HIPS AND OTHER MEDICAL EQUIPMENT GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9309130115 930913 ECONOMY PRODUCER PRICES FELL 06 IN AUGUST IN SIGN INFLATION THREAT IS RECEDING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INFLATION SCARE EARLIER THIS YEAR SEEMS A DISTANT MEMORY THE LATEST SIGN THAT INFLATION ISN'T A THREAT CAME FRIDAY WITH A LABOR DEPARTMENT REPORT THAT PRICES AT THE WHOLESALE LEVEL TUMBLED 06 IN AUGUST THAT'S THE FOURTH CONSECUTIVE MONTHLY DECLINE IN PRODUCER PRICES AND THE LARGEST SINCE FEBRUARY 1991 WHEN PRODUCER PRICES FELL THE SAME AMOUNT EXCLUDING FOOD AND ENERGY PRODUCER PRICES FELL 1 LAST MONTH PRICES PAID BY WHOLESALERS AND CONSUMERS HAVE BEEN WELL UNDER CONTROL SINCE MAY AFTER NOTICEABLE GAINS AT THE START OF THE YEAR THEY WERE UP ONLY 06 FOR THE YEAR ENDED IN AUGUST COMPARED WITH A 25 GAIN FOR THE YEAR ENDED IN APRIL THE BIG RISES IN THE FIRST FEW MONTHS OF 1993 RAISED CONCERNS THAT THE FEDERAL RESERVE WOULD PUSH UP INTEREST RATES BUT RECENT SIGNS THAT INFLATION ISN'T A PROBLEM COUPLED WITH INDICATIONS THAT THE ECONOMY IS STILL SLUGGISH HAVE MADE ANALYSTS FAIRLY CONFIDENT THAT AN INTERESTRATE INCREASE ISN'T IMMINENT THERE ARE TOO MANY UNCERTAINTIES ABOUT HEALTHCARE REFORM AND UNCERTAINTIES ABOUT WHERE THE ECONOMY IS HEADING IN LIGHT OF RECENT INFLATION NEWS THE FED SHOULD HOLD STEADY SAID SAMUEL KAHAN CHIEF ECONOMIST OF FUJI SECURITIES INC IN CHICAGO THE STRENGTH OF THE RECOVERY IS STILL MUCH IN QUESTION JOBS ARE STILL HARD TO GET EMPLOYERS CONTINUE TO CUT THEIR PAYROLLS AND FACTORIES IN PARTICULAR ARE HAVING A TOUGH TIME GAINING MOMENTUM THERE ARE SOME BRIGHT SPOTS THOUGH CAPITAL INVESTMENT IS STRONG CONSUMERS SEEM WILLING TO SPEND AND PRICES ARE IN CHECK ALL OF THE DROP IN PRICES LAST MONTH REFLECTED A HUGE 256 FALL IN TOBACCO PRICES WHICH HAVE FALLEN FOR THREE CONSECUTIVE MONTHS AS CIGARETTE MAKERS BATTLE FOR A SHRINKING CONSUMER BASE INFLATION IS UP IN SMOKE DUE TO TOBACCO PRICES SAID RON SHREIBMAN VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS BUT ASIDE FROM TOBACCO PRICES WERE STILL QUITE FAVORABLE LAST MONTH RISING JUST 02 AMONG FINISHED CONSUMER GOODS PRICES FOR WOMEN'S AND CHILDREN'S CLOTHES FOOTWEAR AND HOUSEHOLD APPLIANCES ALL DECLINED AND AMONG CAPITAL EQUIPMENT PRICES FOR AGRICULTURAL MACHINERY TOOLS COMPUTERS AND OFFICE EQUIPMENT FELL AS WELL HOWEVER CAR PRICES ROSE SHARPLY AND PRESCRIPTION DRUGS WERE UP TOO PRICES FOR INTERMEDIATE GOODS WERE UNCHANGED IN AUGUST THEY ROSE 02 EXCLUDING FOOD AND ENERGY PRICES FOR CRUDE GOODS DROPPED 05 IN AUGUST THEY WERE OFF 26 EXCLUDING FOOD AND ENERGY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR AUGUST BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM AUGUST 1992 9309130114 930913 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE NUMBER OF PEOPLE LINING UP FOR UNEMPLOYMENT BENEFITS HAS FALLEN IN FIVE OF THE PAST SIX WEEKS BUT ANALYSTS SAY IT'S TOO EARLY TO TELL IF THAT INDICATES UNDERLYING STRENGTH IN THE JOB MARKET THE NUMBER OF PEOPLE FILING INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS FELL TO 316000 IN THE WEEK ENDED SEPT 4 THE FEWEST TO FILE IN FOUR YEARS AND THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH SMOOTHS OUT WEEKLY FLUCTUATIONS ALSO FELL TO ITS LOWEST LEVEL IN FOUR YEARS IT'S ENCOURAGING BUT IT'S TOO EARLY TO TELL FOR SURE SAID MICHAEL NIEMIRA ECONOMIST AT MITSUBISHI BANK IF WE GET A COUPLE MORE WEEKS OF IMPROVEMENT IN THE MOVING AVERAGE WE WILL BE CONVINCED IT'S REAL MR NIEMIRA IS FORECASTING A SLIGHT INCREASE IN UNEMPLOYMENT CLAIMS TO 325000 FOR THE WEEK THAT ENDED SATURDAY SEPT 11 HE SAID THE RECENT DROP IN UNEMPLOYMENT CLAIMS IS A BIT CONFUSING BECAUSE IT DOESN'T JIBE WITH OTHER JOBMARKET DATA SUCH AS A 39000JOB DECLINE IN JULY NONFARM PAYROLL THE DECREASE IN UNEMPLOYMENT CLAIMS COULD BE THE RESULT OF FEWER FILINGS AS PEOPLE'S BENEFITS EXPIRE OR PERHAPS THERE IS SOME FUNDAMENTAL IMPROVEMENT IT LOOKS GOOD AT THIS POINT MR NIEMIRA SAID WE'RE JUST LOOKING FOR SOME CONFIRMING EVIDENCE 9309130113 930913 GAMES CREATOR FINDS SUCCESSFUL FORMULAS ARE AN ELUSIVE GOAL PLAY TESTS AND RULE REVISIONS ARE PART OF LONG PROCESS AND MARKETING IS COSTLY BY DANIEL WEEKS SPECIAL TO THE WALL STREET JOURNAL NEW YORK EMBEZZLEMENT TOXIC WASTE AND ENVIRONMENTAL DEVASTATION USUALLY AREN'T CONSIDERED LAUGHING MATTERS AND IF A LARGE US CORPORATION WERE FOUND TO BE MAINTAINING A SLUSH FUND FOR PAYING OFF OFFICIALS IT WOULD MAKE HEADLINES ACROSS THE COUNTRY BUT TO EVAN JONES IT'S ALL JUST A GAME THE GAME IS DOG EAT DOG IN WHICH RINKY DINK INC A MAJOR WIDGET MANUFACTURER USES ITS SLUSH FUND FOR BRIBES AND DIRTY TRICKS CLEARCUTS A RAIN FOREST TO PROVIDE RAW MATERIALS AND TURNS A PARK INTO A TOXIC WASTE DUMP IN THE NAME OF INCREASED WIDGET PRODUCTION TWO TO SIX PLAYERS ACT AS RINKY DINK'S CORPORATE OFFICERS CHAIRMAN PRESIDENT TREASURER SALES MANAGER PRODUCTION SUPERVISOR AND PERSONNEL DIRECTOR THE PLAYERS MUST COOPERATE TO MAINTAIN WIDGET PRODUCTION BUT THEY MUST COMPETE TO SQUIRREL AWAY THE MOST GRAFT BY CLAIMING ADMINISTRATIVE EXPENSES ON THEIR BUDGETS THE GAME ENDS WHEN THE COMPANY GOES BANKRUPT AND THE WINNER IS THE PLAYER WITH THE MOST MONEY HIDDEN IN A SWISS BANK ACCOUNT MR JONES HAS WORKED ON DOG EAT DOG ON AND OFF SINCE ABOUT 1982 HE SAYS AND IS PUSHING TO HAVE IT READY FOR PRODUCTION BY THE END OF THE YEAR IT WILL THEN BECOME THE SECOND OFFERING IN THE CATALOG OF QED GAMES WHICH CONSISTS OF MR JONES AND PARTNER JEFF SIMONS MR SIMONS WHO ALSO HAS A FULLTIME JOB AS AN ASSISTANT CREATIVE DIRECTOR AT MARVEL COMICS HANDLES MARKETING AND MR JONES WORKS ON THE GAMES QED'S FIRST PRODUCT IS ANOTHER OF MR JONES'S DESIGNS STASH AN OUTRAGEOUS LOOK AT NEW YORK'S COUNTERCULTURE AS A SALES SHEET DESCRIBES IT MR JONES CREATED THE GAME THAT EVENTUALLY BECAME STASH IN 1978 WRITING THE RULES AND DESIGNING A PLAYING BOARD OF THE NEIGHBORHOODS OF NEW YORK CITY THE GAME WAS VERY POPULAR AMONG HIS FRIENDS AND PRODUCING AND SELLING IT WHEN HE COULD AFFORD TO WAS IN MIND FROM THE BEGINNING MR JONES TINKERED WITH THE GAME OVER THE YEARS MAKING REVISIONS TO THE RULES AND THE MAP AND LAST YEAR HE AND MR SIMONS POOLED FUNDS FOR A PRODUCTION RUN OF 5000 COPIES STASH IS THE SECOND OF MR JONES'S DESIGNS TO BE PUBLISHED A NOWDEFUNCT COMPANY PUBLISHED 1000 COPIES OF AN EARLIER EFFORT THIS IS YOUR LIFE IN THE LATE 1970S AND MR JONES PURCHASED THE UNSOLD STOCK OF GAMES FROM THE COMPANY WHEN SALES PROVED DISAPPOINTING MR JONES DESIGNED HIS FIRST GAME WHEN HE WAS IN HIGH SCHOOL AN UNOFFICIAL VARIATION OF THE CLASSIC DIPLOMACY IN WHICH THE PLAYERS REPRESENT THE NATIONS OF 19THCENTURY EUROPE AND BACKSTABBING BY SUPPOSEDLY TRUSTY ALLIES IS NOT JUST TOLERATED BUT ENCOURAGED AND THEN HE SAYS I DISCOVERED WAR GAMES I HAD ALWAYS PLAYED GAMES AS A KID BUT THERE WASN'T THAT MUCH AROUND TO PLAY STRATEGY GAMING CHANGED MY LIFE IN ADDITION TO GIVING MR JONES SOMETHING TO PLAY WAR GAMES ALSO IGNITED AND EXPANDED HIS INTEREST IN MILITARY HISTORY MR JONES TURNED INTO AN AVID WARGAMER HELPING TO TEST NEW DESIGNS OCCASIONALLY FOR SIMULATIONS PUBLICATIONS INC A NOWDEFUNCT WARGAME PUBLISHER BEFORE HE WENT TO COLLEGE MR JONES STARTED COLLEGE AS AN ENGINEERING STUDENT AT TULANE UNIVERSITY HE SWITCHED HIS MAJOR TO HISTORY FINISHED HIS UNDERGRADUATE WORK AT NEW YORK'S HUNTER COLLEGE AND EARNED A MASTER'S DEGREE IN AMERICAN HISTORY AT COLUMBIA UNIVERSITY IT WAS WHILE HE WAS AT HUNTER THAT MR JONES DESIGNED HIS FIRST GAME FROM THE GROUND UP HE SAYS FINDING HIMSELF NEAR THE DEADLINE FOR A TERM PAPER MR JONES INSTEAD CAME UP WITH REALPOLITIK A GAME ABOUT THE INTERNAL UNIFICATION OF GERMANY AND ITALY AND SET IN 1859 I EVALUATED THE AGRICULTURAL AND INDUSTRIAL POTENTIAL OF ALL THE PROVINCES AND DREW UP A MAP BUT IT WAS HARD TO FIND NATIONAL ECONOMIC DATA FOR THE PERIOD HE SAYS MR JONES'S TEACHER LOVED THE GAME AND GAVE HIM AN A AND I NEVER WROTE ANOTHER TERM PAPER MR JONES SAYS I GOT AN A FOR EVERY OTHER GAME I DESIGNED BUT ONE AND I GOT AN A FOR THAT COURSE ANYWAY AFTER EARNING HIS MASTER'S DEGREE MR JONES PUSHED AHEAD WITH STASH AND DOG EAT DOG WHILE WORKING AS AN ARCHIVIST AT A NEW YORK CITY INVESTIGATIVE FIRM DOG EAT DOG IS AT WHAT HE CALLS THE TOUGH PART OF ITS EVOLUTION THE BASIC STRUCTURE OF THE GAME HAS BEEN LAID OUT AND NOW THE RULES HAVE TO BE REFINED MR SIMONS DOES HIS SHARE OF SWEATING BETWEEN WORKING AT MARVEL AND RUNNING THE STASH SALES CAMPAIGN FROM HIS APARTMENT THE FIRST ADVERTISING CONSISTED OF A SMALL CLASSIFIED AD IN ROLLING STONE WHICH HAS GENERATED A TRICKLE OF SALES IN ADDITION THE PAIR RECENTLY COMPLETED THEIR FIRST MASS MAILING TARGETING 2000 POTENTIAL GAME WHOLESALERS AND RETAILERS IN THE NORTHEAST A SECOND MAILING IS PLANNED FOR SEPTEMBER AND MR SIMONS IS SHOOTING FOR A FULLPAGE AD IN A NATIONAL PUBLICATION DURING THE FALL THE GAME HAS SUCH VISUAL AND TACTILE APPEAL WE HAVE TO SHOW IT IN THE AD THAT PUTS US IN AN EXPENSIVE AREAA FULLPAGE COLOR AD SAYS MR SIMONS WHO WAS A PRINCIPAL IN A SMALL AD AGENCY BEFORE JOINING MARVEL JUST PRODUCING THE GAME IS A VICTORY BUT GETTING IT TO THE PUBLIC REQUIRES EXPENSES THAT ARE PROHIBITIVE ON OUR BUDGET WE GET ONE OR TWO SHOTS AND THEN THE MONEY RUNS OUT SO WE HAVE TO CHOOSE THOSE SHOTS CAREFULLY 9309130112 930913 GREENSPAN SAYS FICO DEBT SERVICE POSES A CHALLENGE TO THRIFTS INSURANCE FUND BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN OFFBUDGET BORROWING ARRANGEMENT FROM THE LATE 1980S IS POSING NEW CHALLENGES FOR THE SAVINGSANDLOAN INDUSTRY AND ITS INSURANCE FUND ACCORDING TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN AT ISSUE IS THE FINANCING CORP OR FICO IT WAS CREATED BY CONGRESS IN 1987 TO BORROW AS MUCH AS 108 BILLION OFF THE FEDERAL BUDGET TO RECAPITALIZE THE FEDERAL SAVINGS AND LOAN INSURANCE FUND ZEROCOUPON BONDS WERE PURCHASED TO REPAY THE PRINCIPAL ON THESE OBLIGATIONS BUT THE THRIFT INDUSTRY WAS LEFT TO PAY INTEREST ON THE BONDS THROUGH INSURANCE FUND ASSESSMENTS UNDER A 1989 LAW MR GREENSPAN NOTED FICO HAS AN ONGOING CLAIM ON SAIF SAVINGS ASSOCIATION INSURANCE FUND ASSESSMENTS THROUGH THE YEAR 2019 TO FUND INTEREST PAYMENTS ON FICO BONDS THE FED CHIEF SAID THAT THOSE BONDINTEREST PAYMENTS ARE CONSUMING A HEFTY PERCENTAGE OF THRIFT INSURANCEFUND ASSESSMENT REVENUE AND THAT NO RELIEF IS IN SIGHT HE WARNED THAT THIS DEBTSERVICE REQUIREMENT COULD EXERT A CONTINUING DRAG ON THE SAIF AND THE THRIFT INDUSTRY MR GREENSPAN ADDRESSED THE ISSUE IN A WRITTEN RESPONSE TO A SENATE BANKING COMMITTEE QUERY HE SAID IT WOULD BE UNFORTUNATE IF THE THRIFT INDUSTRY'S FRAGILE RECOVERY WERE IMPEDED BY A SIGNIFICANT ACTUAL OR POTENTIAL DIFFERENTIAL BETWEEN DEPOSIT ASSESSMENT RATES FOR THE BANK INSURANCE FUND AND THE SAIF IF ADEQUATE FUNDS ARE NOT APPROPRIATED FOR THE SAIF IT IS LIKELY THAT SAIF MEMBER INSTITUTIONS WOULD OPERATE AT AN ONGOING DISADVANTAGE TO OTHER FINANCIAL CONCERNS AND CONSEQUENTLY WOULD BE LESS ABLE TO ATTRACT CAPITAL TO MAINTAIN THEIR FINANCIAL HEALTH MR GREENSPAN SAID HE SAID CURRENT BIF AND SAIF AVERAGE ASSESSMENT RATES ARE BOTH AT THE HISTORICALLY HIGH LEVELS OF ABOUT 25 CENTS PER 100 OF INSURED DEPOSITS HE SAID THE BANKING INDUSTRY IS EXPECTED TO EXPERIENCE A SIGNIFICANT DECLINE IN THIS RATE OVER TIME BUT THAT THE THRIFT INDUSTRY IS TO RECEIVE A TWOCENT INCREASE AND TO REMAIN AT THAT LEVEL FOR AT LEAST 20 YEARS MR GREENSPAN SAID PROSPECTS OF SMALLER BIF PREMIUMS COULD PROVIDE A STRONG INCENTIVE FOR THRIFTS TO CONVERT TO THE BIF AFTER A MORATORIUM ON SUCH CONVERSIONS EXPIRES NEXT AUGUST EVEN IF THE MORATORIUM IS EXTENDED HE SAID THE SAIF ASSESSMENT BASE IS LIKELY TO DECLINE AS SAIF MEMBERS TAKE STEPS TO REDUCE THEIR ASSESSMENTS AND AN ERODING ASSESSMENT BASE OR HIGHER INSURANCE LOSSES WOULD REQUIRE STILL HIGHER SAIF ASSESSMENT RATES FURTHER CONTRIBUTING TO THE EROSION OF THE ASSESSMENT BASE MR GREENSPAN SAID 9309130111 930913 WHO'S NEWS HOLSON BURNES GROUP INC HOLSON BURNES GROUP INC NORTH SMITHFIELD RI MALCOLM R LLOYD JOINED THIS PHOTOGRAPHALBUM MAKER AS PRESIDENT AND CHIEF OPERATING OFFICER AND WAS ELECTED A DIRECTOR MR LLOYD 54 YEARS OLD WAS PRESIDENT OF ALBERTO CULVER INTERNATIONAL A UNIT OF THE CHICAGO'S ALBERTO CULVER CO A PERSONAL CARE PRODUCTS CONCERN MR LLOYD WILL TAKE OVER FROM JOSH BEKENSTEIN A DIRECTOR WHO BECAME INTERIM PRESIDENT IN JANUARY AFTER THOMAS E HOFFMEISTER 41 RESIGNED TO PURSUE OTHER ACTIVITIES MR BEKENSTEIN 34 WILL REMAIN A DIRECTOR MR LLOYD'S APPOINTMENT INCREASES THE BOARD SIZE TO SIX MEMBERS 9309130110 930913 FINANCING BUSINESS NOVA SCOTIA POWER INC NOVA SCOTIA POWER INC HALIFAX NOVA SCOTIA THE ELECTRIC UTILITY SAID IT FILED A PRELIMINARY SHORTFORM PROSPECTUS WITH CANADIAN SECURITIES COMMISSIONS FOR THE SALE OF 200 MILLION CANADIAN DOLLARS US1519 MILLION CUMULATIVE REDEEMABLE FIRST PREFERRED SHARES SERIES A AT C25 US1899 A SHARE DIVIDENDS WILL BE PAYABLE ON THE SHARES AT A RATE OF 6 ANNUALLY THE SHARES WILL BE REDEEMABLE OR CONVERTIBLE INTO COMMON SHARES AT THE OPTION OF THE UTILITY ON OR AFTER SEPT 1 2000 THE SHARES WILL ALSO BE CONVERTIBLE INTO COMMON SHARES AT THE OPTION OF THE HOLDER ON DIVIDEND PAYMENT DATES AFTER OCT 1 2000 SUBJECT TO CERTAIN CONDITIONS 9309130109 930913 INTERNATIONAL JAPAN PREPARES SPENDING PLAN OF 949 BILLION GOVERNMENT SEEKS TO BOOST ECONOMY AS A SURVEY FINDS CONFIDENCE DOWN BY QUENTIN HARDY AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN IS PREPARING NEW MEASURES TO PUMP LIFE BACK INTO ITS FALTERING ECONOMY AND SENDING POSITIVE SIGNALS ABOUT CUTTING ITS MAMMOTH TRADE SURPLUS PRIME MINISTER MORIHIRO HOSOKAWA TOLD HIS CABINET TO CRAFT A SPENDING PACKAGE WORTH ONE TRILLION YEN 949 BILLION FOR NEW SOCIAL OUTLAYS SUCH AS SCHOOLS AND CULTURAL FACILITIES PART OF THE GOVERNMENT'S THIRD SPECIAL FISCAL STIMULUS PROGRAM IN A YEAR THE ANNOUNCEMENT CAME FRIDAY AS A BELLWETHER CENTRAL BANK SURVEY SHOWED A SHARP DECLINE IN BUSINESS CONFIDENCE IN THE PAST THREE MONTHS EVIDENCE THAT JAPAN'S ECONOMIC OUTLOOK IS WORSENING US OFFICIALS WANT TOKYO TO DO MORE TO HALT THE RECESSION WHICH THEY SAY INFLATES JAPAN'S TRADE SURPLUS BY DAMPING JAPANESE DEMAND FOR FOREIGN GOODS SEPARATELY TSUTOMU HATA DEPUTY PRIME MINISTER AND FOREIGN MINISTER TOLD REPORTERS FRIDAY IT'S POSSIBLE TO DISCUSS SUCH THINGS AS TARGETS FOR CUTTING JAPAN'S TRADE SURPLUS OVER THE NEXT FEW YEARS UNLESS YOU SET A TARGET HE SAID IT'S HARD TO BE UNDERSTOOD THE CLINTON ADMINISTRATION HAS BEEN DEMANDING SUCH A GOAL FOR MONTHS BUT JAPANESE LEADERS HAVE REJECTED THE IDEA AS MANAGED TRADE OTHER JAPANESE OFFICIALS CONTINUED THAT LINE FRIDAY SAYING MR HATA WAS SPEAKING FOR HIMSELF NOT THE GOVERNMENT JAPANESE OFFICIALS TRAVELING TO WASHINGTON FOR TRADE TALKS LAST WEEK STRESSED THAT THE NEW GOVERNMENT IN TOKYO HADN'T CHANGED ITS POSITION OF REJECTING THE IDEA OF CONCRETE TRADE TARGETS ONE SAID THAT BECAUSE THE GOVERNMENT HAS MADE DEREGULATION A GOAL IT WOULD HAVE EVEN LESS INFLUENCE OVER THE ACTIONS OF INDUSTRY STILL SUPPORT FOR THE IDEA IS GROWING IN THE JAPANESE BUSINESS COMMUNITY ONE PROMINENT EXECUTIVE LAST WEEK SAID JAPAN SHOULD PLEDGE TO CUT ITS SURPLUS TO 2 OF GROSS NATIONAL PRODUCT DOWN FROM A FORECAST OF 4 THIS YEAR MANY ECONOMISTS SAY SUCH A PLEDGE SHOULD BE PAINLESS AS VARIOUS TRENDS INDICATE JAPAN'S SURPLUS WILL START SHRINKING NEXT YEAR ANYWAY MR HOSOKAWA WHO TOOK POWER A MONTH AGO IS SCHEDULED TO VISIT THE US THIS MONTH FOR HIS FIRST SUMMIT WITH PRESIDENT CLINTON ANALYSTS SAID LAST WEEK'S GESTURES WERE JUST THE BEGINNING OF A LIKELY STREAM OF ANNOUNCEMENTS IN ADVANCE OF THE MEETING DESIGNED TO SHOW THAT JAPAN IS SERIOUS ABOUT BOOSTING GROWTH AND EASING THE WORSENING BILATERAL TRADE IMBALANCE THE POSSIBLE MEASURES RUN THE GAMUT FROM LOWERING INTEREST RATES TO CUTTING TAXES THE BANK OF JAPAN IS WIDELY EXPECTED TO CUT ITS OFFICIAL DISCOUNT RATE AS EARLY AS THIS WEEK TO A RECORD LOW OF 2 FROM 25 HOSOKAWA AIDES HOPE TO DRAFT A BROADER ECONOMIC POLICY PACKAGE FOCUSING ON DEREGULATION AND IMPORT PROMOTION WHEN PARLIAMENT RECONVENES FRIDAY MANY ECONOMISTS SAY THE LATEST STIMULUS PACKAGE WILL LIKELY GROW TO ABOUT FIVE TRILLION YEN BY THE TIME MR HOSOKAWA GOES TO THE US MEANWHILE THE BAD NEWS WILL ALSO CONTINUE TO SPILL OUT TOKYO IS SCHEDULED TO RELEASE TOMORROW THE LATEST MONTHLY TRADE REPORT WHICH IS LIKELY TO SHOW THE SURPLUS WIDENED YET AGAIN IN AUGUST THE GOVERNMENT SOON WILL ANNOUNCE GNP FIGURES FOR THE APRILJUNE QUARTER WHICH COULD SHOW THE ECONOMY CONTRACTED THE BANK OF JAPAN'S QUARTERLY SURVEY OF BUSINESS CONDITIONS OR TANKAN RELEASED FRIDAY FUELED THAT FEAR IT SHOWED SENTIMENT AT MAJOR CORPORATIONS DROPPED AGAIN AFTER LEVELING OFF IN THE LAST REPORT IN MAY THE INDEX FOR MAJOR MANUFACTURERS WAS THE WORST SINCE 1975 THE DEPTHS OF JAPAN'S BATTERING BY THE OIL EMBARGO THE TANKAN SHOWS WE HAVEN'T GONE OUT OF THE ECONOMIC DOWNTURN SAID A BANK OF JAPAN OFFICIAL WHO ADDED THAT JAPAN'S WORK FORCE CUTBACKS WILL HAVE TO CONTINUE FOR A WHILE THE TANKAN RECORDS SENTIMENT BY SUBTRACTING THE PERCENTAGE OF COMPANIES THAT FORESEE IMPROVING CONDITIONS FROM THOSE EXPECTING DETERIORATION IN FRIDAY'S SURVEY THE INDEX FOR MAJOR MANUFACTURERS STOOD AT MINUS 51 DOWN FROM MINUS 49 IN MAY THE INDEX FOR MAJOR NONMANUFACTURERS INCLUDING THE CONSTRUCTION REALESTATE AND RETAILING INDUSTRIES STOOD AT MINUS 41 A RECORD LOW THE SURVEY ALSO SHOWED A SMALL INCREASE IN INVENTORIES AMONG PRINCIPAL MANUFACTURERS FOLLOWING A DECLINE IN MAY ECONOMISTS ISSUED MIXED REVIEWS ON WHETHER MR HOSOKAWA'S TRILLIONYEN PACKAGE WOULD DO MUCH TO TURN AROUND THAT DISMAL TREND THERE IS NO SILVER BULLET IN THIS UNPRECEDENTED RECESSION SAID JESPER KOLL OF SG WARBURG SECURITIES JAPAN INC THEY'RE STILL SHYING AWAY FROM WHAT'S REQUIRED SAID KENNETH S COURTIS OF DEUTSCHE BANK AG THEY'VE REALLY GOT TO START TAX REFORM ROBERT FELDMAN OF SALOMON BROTHERS ASIA LTD SAID THE GOVERNMENT WILL LIKELY SOON PROMISE TAX CUTS AND MORE SPENDING AS PART OF A TOTAL FOUR TRILLION TO FIVE TRILLION YEN PACKAGE TO STOP THE VICIOUS CIRCLE OF NEGATIVE SENTIMENT POOR CONSUMER SPENDING AND DISMAL BUSINESS RESULTS IN ADDITION TO THE FUNDS FOR SOCIAL OUTLAYS MR FELDMAN SAID THE PACKAGE WILL INCLUDE SPENDING ON DISASTER RELIEF PUBLIC WORKS AND HOUSING PLUS AN INCOME TAX CUT AND OUTLAYS FOR SMALL BUSINESS 9309130108 930913 EC IMPOSES 306 TAX ON CHINA BIKE MAKERS FOR DUMPING EXPORTS SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY IMPOSED ANTIDUMPING DUTIES OF 306 ON EC IMPORTS OF BICYCLES FROM CHINA EFFECTIVE THIS PAST SATURDAY THE DUTIES WHICH ARE TO BE IMPOSED FOR FIVE YEARS TO PROTECT THE EC BICYCLE MANUFACTURING INDUSTRY FROM PRICE UNDERCUTTING OF AROUND 59 BY CHINESE COMPANIES APPLY TO ALL CHINESE COMPANIES INCLUDING CHINA'S LARGEST PRODUCER CHINA BICYCLES CO ACCORDING TO THE EC THE COMMUNITY PRODUCERS' MARKET SHARE HAS DECLINED TO 302 FROM 402 IN 1988 IN ADDITION EC MANUFACTURERS' SALES HAVE FALLEN DESPITE AN INCREASE IN THE COMMUNITY BICYCLE MARKET THE EC SAID THE STAGNATION OF SALES THE LOSS OF MARKET SHARE AND UNSATISFACTORY PROFITS DURING A PERIOD OF INCREASED DEMAND CONCLUDES THAT THE COMMUNITY INDUSTRY SUFFERED MATERIAL DAMAGE THE EC DEFINES DUMPING AS THE EXPORT OF GOODS AT PRICES BELOW THEIR PRODUCTION COST OR LESS THAN THEY SELL FOR IN THEIR HOME MARKET 9309130107 930913 THE CLINTON HEALTH PLAN INSURERS FRET THAT PRICE CONTROLS MAY DETER INVESTMENT IN HMOS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE PRICECONTROL ASPECTS OF THE CLINTON HEALTH PLAN COULD DISCOURAGE INVESTMENT INTO THE VERY HEALTH NETWORKS THAT ARE ESSENTIAL TO THE PLAN'S SUCCESS SAY PEOPLE IN THE INSURANCE INDUSTRY THE PRESIDENT WANTS TO MAKE THE DELIVERY OF MEDICAL SERVICE MORE EFFICIENT BY ENCOURAGING HEALTH MAINTENANCE ORGANIZATIONS AND OTHER FORMS OF MANAGED HEALTH CARE BUT HMOS HAVE A LONG WAY TO GO BEFORE THEY ARE CAPABLE OF DOING ALL THE PRESIDENT ASKS OF THEM ALTHOUGH HMOS HAVE EXISTED FOR YEARS THEY ONLY SERVE ABOUT ONE IN EVERY SIX OR SEVEN AMERICANS INVESTORS PRESUMABLY WOULD PAY FOR CREATING MORE HMOS BUT ONLY IF THEY CAN EARN AN ADEQUATE RETURN ON THEIR INVESTMENT THE CLINTON PLAN THREATENS INVESTMENT RETURNS BY LIMITING THE GROWTH IN HEALTHCARE SPENDING THIS WILL STIFLE INNOVATION AND DRIVE INVESTMENT AWAY SAID DR JAMES MULVIHILL SENIOR VICE PRESIDENT OF HEALTH POLICY FOR TRAVELERS CORP ADDS CHARLES RONSON A STOCK ANALYST WITH BALESTRA CAPITAL ASSUMING THERE'S NOT GOING TO BE WAYS TO GET AROUND PRICE CONTROLS INVESTING IN HMOS IS NOT GOING TO BE VERY ATTRACTIVE THE DRAFT VERSION OF THE CLINTON PLAN STOPS SHORT OF TELLING DOCTORS AND HOSPITALS THE MAXIMUM THEY CAN CHARGE FOR EACH PROCEDURE OR SERVICE BUT IT DOES LIMIT GROWTH RATES ON INSURANCE PREMIUMS INSURANCE COMPANIES ARGUE THAT PUTS THEM IN THE POSITION OF TELLING DOCTORS AND HOSPITALS WHAT THEY CAN CHARGE BY THE YEAR 2000 THE ANNUAL INCREASE IN INSURANCE PREMIUMS WOULD BE PROHIBITED BY LAW FROM EXCEEDING THE INFLATION RATE THE AMOUNT OF MONEY AT STAKE IS HUGE HEALTHCARE SPENDING ACCOUNTS FOR ABOUT ONESEVENTH OF THE COUNTRY'S ECONOMY THE ADMINISTRATION ARGUES THAT HEALTHCARE COMPANIES CAN EARN ADEQUATE RETURNS DESPITE THE PROPOSED CHANGES FOR ONE THING THE REFORMS WILL BRING THEM MORE BUSINESS BECAUSE THE PLAN PAYS FOR COVERING THE 37 MILLION PEOPLE WHO NOW LACK HEALTH INSURANCE AND ALTHOUGH THE CLINTON HEALTH PLAN FORCES COMPANIES TO WATCH THEIR COSTS THE ADMINISTRATION ARGUES COSTCUTTING IS EASILY ACCOMPLISHED BECAUSE THE INSURANCE COMPANIES ARE NOW GROSSLY INEFFICIENT THE INSURANCE COMPANIES STRONGLY DISAGREE IF THERE WAS SO MUCH WASTE AND INEFFICIENCY SOMEONE WOULD COME ALONG AND BID OUR BRAINS OUT SAID LAWRENCE ENGLISH PRESIDENT OF CIGNA CORP'S HEALTHCARE DIVISION IF INVESTORS WITHHOLD THE MONEY NEEDED TO BUILD MORE HEALTH NETWORKS WHAT WOULD AWAIT THE CONSUMER A POSSIBLE RESULT IS POORER HEALTH CARE INSURERS AND DOCTORS MIGHT CHOOSE TO MEET COST GOALS BY REDUCING EXPENSIVE BUT NECESSARY PROCEDURES PATIENTS COULD BE CONFRONTED WITH LONGER WAITS AND SHODDIER FACILITIES TO BE SURE SOME INVESTMENT DOLLARS COULD FLOW INTO HEALTH CARE BUT INSTEAD OF ATTRACTING INVESTMENT FROM THE BEST COMPANIES IN THE HEALTHINSURANCE BUSINESS HEALTH CARE WILL ATTRACT MONEY FROM THOSE WHO WANT TO MAKE A QUICK BUCK ACCORDING TO SOME HEALTHCARE EXPERTS THERE WOULD BE A LOT MORE BUCKET SHOP ENTREPRENEURS SAID THOMAS PYLE AN EXECUTIVE WITH METROPOLITAN LIFE INSURANCE CO AND CHAIRMAN OF THE JACKSON HOLE GROUP A RESEARCH ORGANIZATION WHOSE IDEAS HELPED INFLUENCE THE CLINTON PLAN 9309130106 930913 THE CLINTON HEALTH PLAN MAJOR EMPLOYERS FEAR NEW RESTRAINTS COMPANIES FRET OVER CONTROLS INCREASED COSTS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL AFTER WORKING MORE THAN FIVE YEARS TO CONTROL HEALTH COSTS BIG EMPLOYERS THAT HAVE LED HEALTH REFORM FACE NEW GOVERNMENT RULES THAT COULD TIE THEIR HANDS BUSINESS COALITIONS THAT IN MANY COMMUNITIES HAVE PIONEERED THE COLLECTIVEPURCHASING STRATEGY AT THE HEART OF PRESIDENT CLINTON'S HEALTHREFORM PLAN WILL LIKELY BE FORCED OUT OF BUSINESS IF CERTAIN FEATURES OF THE PROPOSAL BECOME LAW EVEN BIG COMPANIES LIKE GENERAL ELECTRIC CO WHICH BECAUSE OF ITS SIZE HAS BEEN ABLE TO NEGOTIATE TO KEEP ITS HEALTH COSTS DOWN WOULD FIND ITS BARGAINING POSITION DIMINISHED BY THE PLAN'S HUGE GOVERNMENTADMINISTERED PURCHASING ALLIANCES SAYS ROBERT GALVIN MANAGER OF HEALTHCARE SERVICE AT GE IN FAIRFIELD CONN THESE ARE JUST A COUPLE OF THE POSSIBLE CONSEQUENCES FOR EMPLOYERS THAT EMERGE FROM MR CLINTON'S 239PAGE BLUEPRINT FOR OVERHAULING THE HEALTHCARE SYSTEM THE SWEEPING PROPOSAL AFFIRMS AND EXPANDS AMERICA'S LONGSTANDING RELIANCE ON EMPLOYERS TO FINANCE THE PURCHASE OF HEALTH CARE FOR THEIR WORKERS AND BY PROVIDING FOR GENEROUS COVERAGE FOR ALL AMERICANS IT ADDRESSES THE PLIGHT OF MILLIONS WITHOUT HEALTH INSURANCE BUT THE PLAN PROPOSES TO REVAMP THE EMPLOYEE RETIREMENT AND INCOME SECURITY ACT OR ERISA WHICH HAS LONG EXEMPTED LARGE MULTISTATE EMPLOYERS FROM ADHERING TO STATE HEALTHCARE LAWS A DEVELOPMENT THAT COULD SUBJECT MAJOR COMPANIES TO A CONFOUNDING ARRAY OF NEW STATE REGULATIONS IN PARTICULAR STATES FOR THE FIRST TIME ARE EXPECTED TO BE ABLE TO LEVY IN EFFECT A HEALTHCARE TAX ON LARGE CORPORATIONS THAT CHOOSE TO PURCHASE CARE ON THEIR OWN THE TAX WOULD BE A WAY FOR THE STATES TO HELP FINANCE COVERAGE FOR THE POOR AND UNINSURED WHAT WE SEE IN THE PLAN IS THAT MOST OF THE INCENTIVES SEEM TO BE BUDGET CONTROLS RATHER THAN INCENTIVES TO CONTROL QUALITY SAYS MARY JANE ENGLAND PRESIDENT OF THE WASHINGTON BUSINESS GROUP ON HEALTH A HEALTHPOLICY GROUP REPRESENTING ABOUT 200 MAJOR US COMPANIES WHILE SHE LAUDS THE PLAN'S FEATURES FOR REVAMPING THE HEALTHDELIVERY SYSTEM SHE SAYS WE DON'T BELIEVE THE ONLY WAY TO CONTROL COSTS IS TO SET BUDGETS AND COMPANIES FRET THAT THEY WILL BEAR THE BRUNT OF PAYING FOR REFORM AMID WIDESPREAD SKEPTICISM THAT THE PLAN CAN BE FINANCED AS PROPOSED THROUGH SAVINGS FROM FEDERAL MEDICAL PROGRAMS FOR THE ELDERLY AND THE POOR AND THROUGH SIN TAXES ON TOBACCO AND ALCOHOL WE MAY BE ON THE RIGHT ROAD BUT IF THE SYSTEM DOESN'T CONTROL ITSELF WHERE ARE WE GOING TO GET THE MONEY ASKS KATHRYN ABERNETHY PRACTICE LEADER FOR HEALTH CARE AT BENEFITS CONSULTANT TOWERS PERRIN IN WASHINGTON BUSINESS IS THE FIRST PLACE THEY GO IT'S AN ENORMOUS THREAT AS PROPOSED THE PLAN REQUIRES EMPLOYERS TO PROVIDE COVERAGE FOR AT LEAST 80 OF A STANDARD PACKAGE OF BENEFITS FOR THEIR FULLTIME EMPLOYEES AND A PRORATED SHARE OF THE PACKAGE FOR PARTTIMERS WHO WORK LESS THAN 30 HOURS A WEEK FOR COMPANIES WITH LESS THAN 5000 EMPLOYEES THE PREMIUMS WILL BE PAID TO STATE OR REGIONAL PURCHASING ALLIANCES THAT WILL NEGOTIATE CONTRACTS WITH LOCAL HEALTH PLANS EMPLOYEES WOULD CHOOSE THEIR HEALTH PLANS THROUGH THE QUASIPUBLIC ALLIANCES RATHER THAN THROUGH OPTIONS OFFERED BY THEIR COMPANIES AS IS GENERALLY THE CURRENT PRACTICE COMPANIES WITH MORE THAN 5000 WORKERS WILL BE ALLOWED TO OPT OUT OF THE ALLIANCES AND OPERATE AS THEIR OWN CORPORATE ALLIANCE AS LONG AS THEY FOLLOW RULES ESTABLISHED FOR THE GOVERNMENTSANCTIONED PURCHASING GROUPS THE 5000EMPLOYEE THRESHOLD HAS ALREADY PROVOKED ENORMOUS DEBATE AND MANY OBSERVERS BELIEVE THE ULTIMATE NUMBER IN ANY PLAN APPROVED BY CONGRESS WILL BE PERHAPS 1000 OR EVEN LOWER HOW THE PLAN AFFECTS INDIVIDUAL COMPANIES DEPENDS LARGELY ON THE MAKEUP OF THEIR WORK FORCE AND THEIR CURRENT HEALTHBENEFITS POLICIES FOR SOME COMPANIES THIS WILL BE A DEVASTATING FINANCIAL LOSS AND RESULT IN DRAMATIC CHANGES IN EMPLOYMENT AND COMPENSATION POLICIES MS ABERNETHY SAID BIG RETAILERS SUCH AS SEARS ROEBUCK & CO AND SERVICE COMPANIES SUCH AS MARRIOTT CORP BOTH OF WHICH HIRE LARGE NUMBERS OF PARTTIME WORKERS WHO HAVE LITTLE OR NO COVERAGE WILL FACE POTENTIALLY HUGE NEW COSTS SMALL BUSINESSES THAT CURRENTLY DON'T PROVIDE ANY COVERAGE WILL BE REQUIRED TO CONTRIBUTE ALTHOUGH AT SUBSIDIZED RATES IN MANY CASES BUT THE BIG THREE AUTO MAKERS AS WELL AS OTHER INDUSTRIAL CONCERNS THAT COMPLAIN THAT THE COST OF PROVIDING HEALTH CARE TO THEIR HUGE RETIREE POPULATIONS UNDERMINES THEIR COMPETITIVENESS COULD GET A WINDFALL THE PLAN ANTICIPATES THE GOVERNMENT WILL BEAR MUCH OF THE COST PREMIUMS FOR EARLY RETIREES THUS IN THE SHORT TERM AT LEAST THE PLAN APPEARS TO REARRANGE RATHER THAN RECTIFY DIFFERENCES IN THE IMPACT OF HEALTH COSTS ON THE FINANCIAL HEALTH OF COMPANIES AND INDUSTRIES FOR LARGE EMPLOYERS WHO CHOOSE TO PURCHASE CARE ON THEIR OWN THE PLAN APPEARS TO OFFER AN INGREDIENT THAT MANY BUSINESS LEADERS CONSIDER IMPORTANT THE ABILITY TO NEGOTIATE PREMIUMS BASED ON THE EXPERIENCE OF THEIR EMPLOYEES PRESUMABLY THAT WOULD ENABLE COMPANIES WITH HEALTHIER WORKERS TO NEGOTIATE SAVINGS THAT WOULDN'T BE AVAILABLE THROUGH GOVERNMENTADMINISTERED ALLIANCES WHERE PREMIUMS WOULD BE THE SAME FOR EVERY CONSUMER SERVED BY THE ALLIANCE BUT WITH THOSE HUGE ALLIANCES DOMINATING THE MARKET GE'S DR GALVIN AMONG OTHERS WORRIES THAT INDIVIDUAL COMPANIES' CLOUT WILL DIMINISH AND HEALTH PLANS WON'T HAVE MUCH REASON TO OFFER THEM A BETTER RATE IN ADDITION THE LIKELIHOOD THAT THE ERISA EXEMPTION WILL BE WEAKENED MAY HELP DISCOURAGE BIG COMPANIES FROM GOING IT ALONE THE PLAN OFFERS FLEXIBILITY TO STATES IN DETERMINING HOW THE REGIONAL PURCHASING ALLIANCES WILL OPERATE RAISING THE POSSIBILITY THAT CORPORATIONS WITH EMPLOYEES IN SEVERAL STATES WOULD HAVE TO FOLLOW DIFFERENT RULES IN DIFFERENT LOCATIONS IF YOU'RE A MULTISTATE EMPLOYER IT'S GOING TO LOOK LIKE A BEWILDERING PATCHWORK QUILT OF REQUIREMENTS SAYS TOWERSPERRIN'S MS ABERNETHY OF COURSE SOME COMPANIES BOTH LARGE AND SMALL ARE LIKELY TO WELCOME THE CHANCE TO UNLOAD THE HEADACHE OF MANAGING HEALTH BENEFITS ONTO THE STATESANCTIONED ALLIANCES BUT MANY LARGE EMPLOYERS WHO HAVE THE OPTION TO STAY OUT PROBABLY WILL AT LEAST INITIALLY MS ABERNETHY SAYS FOR ONE THING ONCE COMPANIES CHOOSE TO USE THE NEW ALLIANCES IT IS ALMOST IMPOSSIBLE TO GET OUT FOR ANOTHER THESE COMPANIES ARE CONVINCED THEY CAN DO A BETTER JOB THAN A QUASIGOVERNMENT ORGANIZATION MANAGING PROGRAMS THEY BELIEVE ARE CRITICAL TO MAINTAINING A PRODUCTIVE WORK FORCE AT DUPONT CO WHICH LAUNCHED AN OVERHAUL OF ITS BENEFITS PLAN A YEAR AGO TO MOVE MOST OF ITS 66000 EMPLOYEES AND 75000 RETIREES INTO MANAGEDCARE NETWORKS THE PROSPECT OF INCREASED STATE AUTHORITY OVER HEALTH CARE POSES THE DAUNTING POSSIBILITY OF HAVING TO DEAL WITH 50 DIFFERENT HEALTH PLANS BUT FOR NOW WE WANT TO RUN OUR OWN PLAN THE WAY WE HAVE BEEN SAYS BRUCE W KARRH VICE PRESIDENT INTEGRATED HEALTH CARE AT XEROX CORP WHICH IS CONSIDERED TO OPERATE ONE OF THE NATION'S MOST INNOVATIVE HEALTHBENEFITS PLANS HELEN DARLING MANAGER OF HEALTHCARE STRATEGY AND PROGRAMS SAYS WE'RE ASSUMING WE'LL STILL BE ALLOWED TO PICK AND CHOOSE AS LONG AS WE MEET MINIMUM STANDARDS WHICH WE DO ANYWAY BUT SHE ALSO WORRIES THAT A NEW REGULATORY APPARATUS WILL EMERGE TO OVERSEE THE OPERATIONS OF CORPORATE PURCHASERS WE MAY HAVE TO CREATE A PAPERWORK SYSTEM TO DOCUMENT THAT WE'RE DOING WHAT WE'RE DOING SHE SAYS MEANTIME BUSINESS COALITIONS IN SUCH COMMUNITIES AS MEMPHIS TENN AND MINNEAPOLIS THAT HAVE MADE HEADWAY BOTH IN SAVING MONEY AND HELPING TO DEVELOP A MORE COSTEFFECTIVE HEALTHDELIVERY SYSTEM WON'T BE ABLE TO ACT AS PURCHASING ALLIANCES UNDER THE PLAN IN MEMPHIS FOR INSTANCE THE 50MEMBER MEMPHIS BUSINESS GROUP ON HEALTH IN A CONTRACT WITH BAPTISTS HOSPITAL HAS HELD AVERAGE ANNUAL HEALTHCOST INCREASES TO ABOUT 6 OVER THE LAST FIVE YEARS COMPARED WITH A NATIONAL AVERAGE OF ABOUT 15 AT A MEETING IN SEATTLE IN JULY SEAN SULLIVAN EXECUTIVE DIRECTOR OF THE NATIONAL BUSINESS COALITION ON HEALTH AN UMBRELLA GROUP FOR BUSINESS COALITIONS URGED THE ADMINISTRATION NOT TO INSTITUTE A POLICY THAT WOULD DISMANTLE COALITION EFFORTS PLEASE DON'T BREAK WHAT WE'RE FIXING HE SAID WHILE YOU FIX WHAT'S STILL BROKEN SEE RELATED ARTICLE SMALL BUSINESS SEES BURDENS GETTING LIGHTER WSJ SEPT 13 1993 9309130105 930913 TECHNOLOGY STRATUS COMPUTER TO BUY SOFTWARE FIRM IN OPENING MOVE OF DIVERSIFICATION PLAN BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL STRATUS COMPUTER INC HAS AGREED TO ACQUIRE A SMALL SPECIALTY SOFTWARE MAKER THE OPENING MOVE IN A 100 MILLION INVESTMENT PLAN INTENDED TO HELP THE COMPANY DIVERSIFY INTO SOFTWARE STRATUS OFFICIALS SAY THAT IN THE COMING YEAR THE MAKER OF FAULTTOLERANT COMPUTERS PLANS TO BUY OR FORGE ALLIANCES WITH SOFTWARE AND SERVICE COMPANIES THAT SPECIALIZE IN ONLINE TRANSACTION PROCESSING THE TASK FOR WHICH MOST STRATUS MACHINES ARE BOUGHT ONLINE PROCESSING IS USED IN AUTOMATED TELLER NETWORKS AIRLINE RESERVATION SYSTEMS AND OTHER APPLICATIONS WHERE A SINGLE COMPUTER HICCUP WOULD BE DISASTROUS STRATUS'S COMPUTERS ARE DESIGNED WITH BUILTIN REDUNDANCIES INTENDED TO KEEP THEM RUNNING EVEN IF A COMPONENT FAILS BASED IN MARLBOROUGH MASS STRATUS HAS BUILT A SOLID FRANCHISE IN THE FAULTTOLERANT NICHE IT HAD REVENUE OF 486 MILLION LAST YEAR BUT REVENUE GROWTH HAS SLOWED AS IT HAS THROUGHOUT THE INDUSTRY AS THE COMPANY HAS ATTEMPTED TO MAKE THE TRANSITION TO STANDARD OPERATING SYSTEMS FROM ITS PROPRIETARY ONES IN THE FIRST DIVERSIFICATION MOVE EXPECTED TO BE ANNOUNCED THIS WEEK A STRATUS EXECUTIVE SAID THE COMPANY WILL PAY 15 MILLION FOR SHARED FINANCIAL SYSTEMS INC A CLOSELY HELD DALLAS COMPANY WITH ABOUT 200 EMPLOYEES AND SALES OF 20 MILLION FOR THE YEAR ENDED MARCH 31 SHARED FINANCIAL WHICH IS PROFITABLE WITH GROWING SALES WILL REMAIN IN DALLAS AND CONTINUE UNDER EXISTING MANAGEMENT THE OFFICIAL SAID SHARED FINANCIAL MAKES SOFTWARE FOR CREDITCARD AUTHORIZATION AND BANKING AND RETAIL SYSTEMS AND ITS CUSTOMERS INCLUDE MANY MAJOR BANKS CREDITCARD ASSOCIATIONS AND RETAIL DRUG CHAINS STRATUS HAS ABOUT 173 MILLION IN CASH RESERVES TO HELP PAY FOR SHARED FINANCIAL AND FINANCE ITS OTHER INVESTMENT PLANS STRATUS'S STRATEGY FOCUSES ON BUILDING EXPERTISE IN A FEW INDUSTRY SEGMENTS SUCH AS TELECOMMUNICATIONS OR HEALTH CARE STRATUS IS SEEKING SOFTWARE COMPANIES SPECIALIZING IN THOSE AREAS AND HAS LOOKED AT ALMOST 100 SUCH SMALL SPECIALIZED SOFTWARE CONCERNS STRATUS IS TRYING TO BUILD AN ENVIRONMENT WHERE THEY HAVE MORE CONTROL OVER THEIR DESTINY THAN MOST HARDWARE COMPANIES SAID JOHN B JONES AN ANALYST AT SALOMON BROTHERS HE SAID STRATUS STOCK HAS BEEN WEAK LATELY BECAUSE INVESTORS WORRY THAT IT WON'T BE ABLE TO EXECUTE ITS EVOLVING STRATEGY CHANGE MEANS RISK HE ADDED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY STRATUS SHARES FELL 375 CENTS TO 23625 STRATUS'S EFFORTS TO BOOST SALES OF SOFTWARE AND SERVICES AS A PERCENTAGE OF ITS TOTAL REVENUE COMES AS GROWTH HAS SLOWED IN ITS FLAGSHIP COMPUTER HARDWARE LINE FOR THE SECOND QUARTER ENDED JULY 4 REVENUE ROSE JUST 57 TO 1241 MILLION WHILE PROFIT WAS FLAT AT 135 MILLION OR 57 CENTS A SHARE UNTIL THIS YEAR STRATUS ENJOYED QUARTERTOQUARTER GROWTH IN REVENUE AND PROFIT THAT WAS AMONG THE STRONGEST IN THE INDUSTRY STRATUS HAS BEEN HURT BY A SHARP DROPOFF IN SALES THROUGH INTERNATIONAL BUSINESS MACHINES CORP WHICH HAD RESOLD SOME STRATUS MODELS UNDER THE IBM NAME IT IS ALSO IN THE MIDST OF A TRANSITION FROM ITS OWN PROPRIETARY OPERATING SOFTWARE TO STANDARD UNIX OPERATING SOFTWARE UNIXBASED COMPUTERS NOW MAKE UP 15 OF STRATUS SALES AND STRATUS IS INVESTING IN A NEW PRODUCT LINE BUILT AROUND A NEW GENERATION OF CHIP CALLED THE PARISC MADE BY HEWLETTPACKARD CO 9309130104 930913 INDUSTRY FOCUS MOBILE RADIO COMPANIES HEED CALL OF CELLULAR MARKET DIGITAL NETWORKS CAN OFFER SERVICES GEARED TO THE MOBILE WORK FORCE' BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL AS IF THE WIRELESS WARS WEREN'T FEVERISH ENOUGH AN UNLIKELY BREED OF PLAYERS IS GEARING UP TO GIVE THE 9 BILLION CELLULAR INDUSTRY A RUN FOR ITS MONEY IN SOME OF THE BIGGEST URBAN MARKETS THE UPSTARTS ARE SPECIALIZED MOBILE RADIO COMPANIES PROVIDERS OF RADIO DISPATCH SERVICES FOR PLUMBERS TRUCKERS AND TAXI CABS IN THE PAST FEW MONTHS THEIR ONCEOBSCURE AND STATICFILLED RADIO FREQUENCIES HAVE BECOME REMARKABLY VALUABLE SPURRED BY THE RELAXATION OF CERTAIN FEDERAL RULES THESE FIRMS ARE CONVERTING THEIR ANTIQUATED ANALOG TECHNOLOGY TO MORE POWERFUL DIGITAL SYSTEMS IN TIME THIS WILL ALLOW A HOST OF FIRMS TO BRANCH OUT FROM DISPATCH SERVICES INTO CELLULARLIKE PHONE AND DATA SERVICES THERE'S A BIG SHIP CALLED CELLULAR PLOWING THROUGH DECLARES ALAN SHARK PRESIDENT OF AMERICAN MOBILE TELECOMMUNICATIONS ASSOCIATION BUT ITS WAKE HAS JUST GOTTEN A LOT LARGER DISPATCH CARRIERS HAVE BEEN GOBBLING UP MOMANDPOP MOBILE RADIO COMPANIES A NUMBER HAVE GONE PUBLIC AND THE PARTICULARLY AGGRESSIVE NEXTEL COMMUNICATIONS INC FORMERLY FLEET CALL INC HAS RAISED OVER A BILLION DOLLARS FROM SEVERAL LARGE COMPANIES AND PUBLIC INVESTORS IN THE PAST 12 MONTHS NEXTEL'S STOCK HAS INCREASED FOURFOLD TO ALMOST 40 A SHARE MOBILE RADIO FIRMS HOPE TO CARVE A NICHE BY OFFERING VOICE PAGING AND DISPATCH SERVICES ON A SINGLE HANDSET THESE SERVICES OFFERED ON DIGITAL NETWORKS WILL LET THEM PURSUE THE MOST LUCRATIVE END OF THE MARKET THE SOCALLED MOBILE WORK FORCE INCLUDING COURIERS REAL ESTATE AGENTS AND TRAVELING EXECUTIVES THE WINDOW OF OPPORTUNITY IS THE NEXT SIX MONTHS ASSERTS JEFFREY HULTMAN CHIEF EXECUTIVE OF DIAL PAGE INC A PAGING COMPANY THAT RECENTLY TOOK THE PLUNGE INTO MOBILE RADIO BY THAT TIME HE SAYS THE FEDERAL COMMUNICATIONS COMMISSION WOULD LIKELY HAVE HANDED OUT MOST AVAILABLE DIGITAL FREQUENCIES FOR DISPATCH AMONG MOBILE RADIO FIRMS NO ONE IS MOVING FASTER THAN NEXTEL THE RUTHERFORD NJ COMPANY RECENTLY ACTIVATED ITS FIRST DIGITAL NETWORK IN SOUTHERN CALIFORNIA AND PLANS TO EXPAND ITS SERVICES IN THE REST OF THE STATE BY EARLY NEXT YEAR NEXTEL'S HEAD START OWES MUCH TO ITS CHAIRMAN AND FORMER FCC LAWYER MORGAN O'BRIAN WHO HAD THE IDEA OF PROVIDING CELLULAR SERVICE ON THE DISPATCH RADIO SPECTRUM AFTER A BUYING SPREE NEXTEL OWNED LICENSES FROM OVER 100 MOBILE RADIO OPERATORS NEXTEL ALSO GOT MOTOROLA INC TO DESIGN THE DIGITAL HANDSETS BUT MANY DISPATCH OPERATORS FEARING THEY'D HAVE TO SPEND SMALL FORTUNES TO MATCH NEXTEL'S DIGITAL SERVICE IN THEIR AREAS INITIALLY OPPOSED THE COMPANY CHUCK WELLS OF MOBILE UHF INC CALLED NEXTEL'S EXPANSION MONSTROUS OTHERS LOBBIED THE FCC TO BLOCK THE COMPANY'S PLANS AND AT AN INDUSTRY MEETING BRIAN MCAULEY NEXTEL'S PRESIDENT ANGERED COLLEAGUES WHEN HE DESCRIBED DISPATCH FIRMS AS DINOSAURS AND URGED THEM TO IMPROVE THEIR TECHNOLOGY NEXTEL EVENTUALLY PLACATED OTHER DISPATCH FIRMS BY AGREEING NOT TO PLACE ITS DIGITAL SITES TOO CLOSE TO THEIRS INDUSTRY OPPOSITION FINALLY DIED DOWN ONCE OTHER DISPATCH CARRIERS DECIDED TO GO DIGITAL THEMSELVES NEXTEL FACED A MORE DAUNTING HURDLE HOW TO PERSUADE THE FCC TO WAIVE CERTAIN RULES WHICH EFFECTIVELY BLOCKED ITS PLAN TO GO DIGITAL ALTHOUGH THE FCC WANTED TO ENCOURAGE COMPETITION AMONG THE CELLULAR EMPIRES MOST FREQUENCIES IN THE CELLULAR PORTION OF THE SPECTRUM HAD ALREADY BEEN DISTRIBUTED NEXTEL'S SCHEME SEEMED A CLEVER WAY AROUND THE PROBLEM IT PROVED AN UPHILL TASK HOWEVER CELLULAR OPERATORS INCLUDING THE BABY BELLS AND GTE CORP UNLEASHED ALL THEIR LOBBYING POWER AT THE FCC IN AN ATTEMPT TO PREVENT NEXTEL FROM RECEIVING REGULATORY WAIVERS ACCORDING TO A PERSON FAMILIAR WITH THE SITUATION A LOT OF LATE NIGHT BATTLES FOLLOWED AT ONE POINT WHEN DEMOCRATIC SEN ERNEST F HOLLINGS OF SOUTH CAROLINA PRESSED THE FCC TO BLOCK NEXTEL'S PLAN IT SEEMED THE COMPANY'S PROGRESS WOULD BE SEVERELY DELAYED BUT NEXTEL HAD AN ACE UP ITS SLEEVE IT WON THE CRUCIAL BACKING OF POWERFUL IF UNLIKELY ALLIES SEVERAL MAJOR TV NETWORKS THE BROADCAST COMPANIES HAD THEIR REASONS FOR SUPPORTING NEXTEL ANTICIPATING THE DAY WHEN THEY COULD OFFER HIGHDEFINITION TELEVISION THE NETWORKS WANTED TO OWN CERTAIN ULTRAHIGHFREQUENCY CHANNELS NOT YET DISTRIBUTED BY THE FCC BUT IF THE WAIVERS WERE DENIED TO NEXTEL THE FCC IN ITS EFFORT TO SPUR CELLULAR COMPETITION MIGHT OFFER THESE CHANNELS FOR WIRELESS SERVICES WHICH WOULD BE A BLOW TO THE NETWORKS' PLANS THE LOBBYING POWER OF THE NETWORKS UNDERCUT A LOT OF THE VALUE OF THE SENATOR'S OPPOSITION TO NEXTEL THE PERSON FAMILIAR WITH THE SITUATION SAID EVENTUALLY IN FEBRUARY 1991 NEXTEL RECEIVED THE WAIVERS THERE WERE 250 LAWYERS OPPOSING US INCLUDING TWO EXFCC CHAIRMEN BOASTS MR MCAULEY BUT WE KNEW WHAT THE RULES WERE THE FIELD IS NOW BRIMMING WITH PLAYERS CENCALL COMMUNICATIONS CORP DENVER PLANS TO OFFER DIGITAL SERVICES IN SEVERAL STATES WE'RE NOT LOOKING TO OVERTAKE CELLULAR CARRIERS SAYS STEVE SCHOVEE CHIEF EXECUTIVE WE'RE JUST LOOKING FOR A SHARE OF THE MARKET DESPITE THEIR MOMENTUM COMPANIES FACE A NUMBER OF OBSTACLES MOBILE RADIO HANDSETS ARE LIKELY TO BE MORE EXPENSIVE THAN CELLULAR PHONES SUCH FIRMS MUST RAISE BILLIONS TO BUILD EXPENSIVE TRANSMISSION TOWERS TO LINK THE COUNTRY AND THEY WILL HAVE TO COMPETE WITH ENTRENCHED CELLULAR FIRMS WHO ALSO PLAN TO OFFER VARIOUS SERVICES ON A SINGLE HANDSET MARKETING IS GOING TO BE THE BIGGEST CHALLENGE SAYS SUSAN PASSONI ANALYST AT COWEN & CO AS WITH CELLULAR FIRMS IT WILL COST DISPATCH CARRIERS A STEEP 600 TO 700 IN MARKETING EXPENSES TO SUCCESSFULLY WOO EACH SUBSCRIBER SHE SAYS THE DISPATCH INDUSTRY IS ALSO FAR FROM PROVIDING A SEAMLESS NETWORK COASTTOCOAST ALTHOUGH LEADING FIRMS ARE PUTTING TOGETHER A CONSORTIUM WHICH WILL ALLOW THEM TO HANDLE EACH OTHER'S CALLS AND PERMIT NATIONAL ROAMING STILL FOR THE FIRST TIME DISPATCH IS CROSSING OVER FROM BLUE COLLAR SUBSCRIBERS LIKE TAXI CABS TO WHITE COLLAR USERS LIKE REAL ESTATE AGENTS SAYS MARK HULL VICE PRESIDENT OF AMERICAN MOBILE SYSTEMS INC WOODLAND HILLS CALIF THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION ONCE OPPOSED RECENTLY SAID IT WILL ACCEPT NEXTEL AND OTHERS AS MEMBERS BIGGER PLAYERS ARE ALSO HUNGRY FOR A SLICE OF THE PIE MOTOROLA THE LARGEST OPERATOR OF MOBILE RADIO IS AWAITING FCC PERMISSION TO GO DIGITAL IN SOME MARKETS AND THE BABY BELLS AND GTE CURRENTLY BARRED FROM PROVIDING DISPATCH SERVICES ARE AGGRESSIVELY LOBBYING THE COMMISSION TO REVAMP ITS RULES MOST PEOPLE IN THE INDUSTRY WOULD AGREE IT'S PROBABLY AN INEVITABILITY THAT LOCAL PHONE COMPANIES WILL EVENTUALLY ENTER THE DISPATCH MARKETS SAYS DEBRA B WAYNE SENIOR EDITOR OF THE LAND MOBILE RADIO NEWS NEWSLETTER NEXTEL COMMUNICATIONS HAS STARTED OPERATIONS IN LOS ANGELES EXPECTS TO ACTIVATE SYSTEMS IN SAN FRANCISCO IN EARLY 1994 CENCALL COMMUNICATIONS HAS LICENSES TO INTRODUCE SYSTEMS IN PACIFIC NORTHWEST AND ROCKY MOUNTAINMIDWEST REGIONS DIAL PAGE PLANS TO ACTIVATE FIRST SYSTEM IN MID1994 WILL SET UP ADDITIONAL OPERATIONS IN SIX SOUTHEASTERN STATES MOTOROLA IS AWAITING FCC APPROVALS FOR SOME MARKETS AMERICAN MOBILE SYSTEMS NEXTEL PLANS TO BUY A MAJORITY STAKE IN THIS COMPANY IN EARLY 1994 AMERICAN MOBILE IS AWAITING FCC APPROVAL TO GO DIGITAL POWERFONE EXPECTS TO SET UP FIRST DIGITAL SYSTEM IN DETROIT IN EARLY 1995 AND EVENTUALLY COVER THE MIDWEST ADVANCED MOBILECOMM/QUESTAR THE FIRMS' JOINT VENTURE WILL PROVIDE SERVICE IN PORTLAND ORE SEATTLE SALT LAKE CITY PHOENIX SAN DIEGO AND LAS VEGAS IN ABOUT TWO AND A HALF YEARS ADVANCED RADIO COMM SERVICES OF FLA WILL OPERATE IN MIAMI FT LAUDERDALE WEST PALM BEACH BY LATE 1994 PITTENCRIEFF COMMUNICATIONS PLANS TO START OPERATIONS IN EL PASO TEXAS IN MID1994 9309130103 930913 INTERNATIONAL BANKS AGREE TO 17 BILLION RESCUE OF FAILED CANARY WHARF OFFICE PROJECT BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BANK LENDERS AGREED TO A 11 BILLION 17 BILLION RESCUE PACKAGE FOR LONDON'S HUGE CANARY WHARF OFFICE COMPLEX CLEARING THE WAY FOR THE PROJECT TO EMERGE FROM COURT ADMINISTRATION LLOYDS BANK PLC HEADING A CONSORTIUM OF 10 LENDERS SAID SALVAGING CANARY WHARF WOULD BE THE LARGEST REFINANCING IN UK HISTORY THE COURTAPPOINTED ADMINISTRATORS SAID THE PROJECT COULD EXIT FROM BRITISH BANKRUPTCY LAW PROTECTION BY THE END OF OCTOBER IF THE PLAN IS APPROVED BY CREDITORS CANARY WHARF WAS DEVELOPED BY CANADA'S OLYMPIA & YORK DEVELOPMENTS LTD WHICH LAST YEAR BECAME ONE OF THE BIGGEST CORPORATE FAILURES EVER THE ILLFATED OFFICE PROJECT'S INITIAL PHASES WERE BEING COMPLETED JUST AS LONDON'S OVERHEATED PROPERTY MARKET COLLAPSED IN THE EARLY 1990S OCCUPANCY RATES HAD BEEN BROUGHT UP TO THE CURRENT 40 ONLY SLOWLY MOSTLY AT RENTS FAR BELOW THE AMOUNTS NEEDED TO SUPPORT THE PROJECT'S DEBT THE AGREEMENT REQUIRES THE BACKING OF 75 OF CANARY WHARF'S UNSECURED CREDITORS WHO WOULD RECEIVE 117 MILLION TO 149 MILLION OR 106 TO 15 OF THEIR CLAIMS CONSTRUCTION CREDITORS COULD RECLAIM AN ADDITIONAL 25 BY GIVING WARRANTIES ON THEIR WORK STEPHEN ADAMSON AN ACCOUNTANT WITH ERNST & YOUNG AND AN ADMINISTRATOR OF CANARY WHARF SAID REJECTION BY THE UNSECURED CREDITORS WOULD ALMOST INEVITABLY LEAD TO LIQUIDATION GIVEN THAT ALTERNATIVE UNDER WHICH UNSECURED CREDITORS WOULD GET NOTHING THEY ARE EXPECTED TO APPROVE THE PLAN ON SEPT 30 ITS TERMS ARE ALMOST IDENTICAL TO THOSE THAT HAVE BEEN UNDER DISCUSSION FOR MONTHS ADMINISTRATORS SURVEYED THE 1400 UNSECURED CREDITORS AND CALLED THE RESPONSE ENCOURAGING UNDER THE PLAN THE 10BANK CONSORTIUM WOULD DEFER PAYMENTS ON DEBT OF 568 MILLION PLUS ACCRUING INTEREST UNTIL 2007 LLOYDS BANK WOULDN'T DISCLOSE REPAYMENT TERMS AFTER THE 14YEAR EXTENSION LENDERS WOULD ALSO PROVIDE 278 MILLION IN NEW FINANCING INCLUDING 98 MILLION FROM THE EUROPEAN INVESTMENT BANK FOR AN EXTENSION OF THE LONDON UNDERGROUND TO THE COMPLEX THE EXTENSION WOULD TAKE 4 1/2 YEARS TO BUILD AFTER WHICH LENDERS WILL PAY LONDON REGIONAL TRANSPORT AN ADDITIONAL 300 MILLION THE BANKS WOULD OWN THE PROJECT AS SYLVESTER INVESTMENTS LTD NAMED FOR THE CAT THAT TRIED TO EAT THE CANARY THE NEW COMPANY PLANS TO COMPLETE THE ONE UNFINISHED BUILDING FROM THE PROJECT'S FIRST TWO PHASES THE THIRD AND FOURTH PHASES WILL BE DEMANDLED IT SAID AN 11TH BANK NATIONAL BANK OF CANADA HAD DECIDED AGAINST PROVIDING FURTHER LOANS TO THE PROJECT LLOYD'S DIDN'T LIST THE CANADIAN BANK AS A MEMBER OF THE CONSORTIUM AND IT DIDN'T RESPOND TO CALLS SEEKING COMMENT US BANKS IN THE CONSORTIUM ARE CITIBANK AND CHEMICAL BANKING CORP CITIBANK WHICH SET ASIDE A 380 MILLION LOSS PROVISION FOR LOANS TO O&Y SAID IT WOULD BE INAPPROPRIATE TO DISCUSS THE EFFECTS OF THE CANARY WHARF PLAN OVEREXTENDED IN THE WORLD REAL ESTATE MARKET O&Y FILED FOR PROTECTION FROM CREDITORS IN THE US AND CANADA IN MAY 1992 AFTER FAILING TO RESTRUCTURE 12 BILLION IN DEBT OUT OF COURT 9309130102 930913 CORRECTIONS & AMPLIFICATIONS ROBERT MANCHESTER IS AN ATTORNEY FOR CHARLES J BAZARIAN WHO WAS ACCUSED IN A LAWSUIT OF PARTICIPATING IN AN ALLEGED STOCK MANIPULATION SCHEME IN AN ARTICLE ABOUT THE CASE IN FRIDAY'S EDITION MR MANCHESTER WAS INCORRECTLY IDENTIFIED AS ROBERT MONTGOMERY 9309130101 930913 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 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 89 DAYS 309 90 TO 119 DAYS 317 120 TO 179 DAYS 318 180 TO 239 DAYS 324 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 312 60 DAYS 313 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 256 TWO MONTHS 260 THREE MONTHS 271 SIX MONTHS 287 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 306 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 304 90 DAYS 314 120 DAYS 313 150 DAYS 313 180 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 TUESDAY SEPTEMBER 7 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 295 13 WEEKS 303 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 666 60 DAYS 671 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 663 60 DAYS 673 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 9309130100 930913 THE CLINTON HEALTH PLAN ANGRY DRUG MAKERS SAY RULES WOULD STRANGLE R&D BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOP PHARMACEUTICAL INDUSTRY EXECUTIVES REACTED ANGRILY TO ASPECTS OF THE CLINTON HEALTH REFORM PROPOSAL SAYING IT WOULD CREATE HARSH PRICE CONTROLS THAT WOULD RESTRICT RESEARCH FOR NEW MEDICINES WE'RE TALKING ABOUT REGULATIONS THAT COULD AFFECT THE VERY SURVIVAL OF AN INDUSTRY THAT USED TO BE VERY SUCCESSFUL SAID LODEWIJK DE VINK PRESIDENT AND CHIEF OPERATING OFFICER OF WARNERLAMBERT CO HE SAID THE REGULATIONS MAY ACTUALLY MAKE IT IMPOSSIBLE TO CONDUCT COSTLY HIGHRISK RESEARCH NECESSARY FOR COMBATING DISEASES THAT STILL AREN'T WELLTREATED SUCH AS ALZHEIMER'S DISEASE AND CANCER IN CONVERSATIONS WITH NUMEROUS KEY DRUG COMPANY EXECUTIVES IT WAS CLEAR THAT THE INDUSTRY LONG KNOWN FOR ITS FRACTIOUSNESS WAS IN UNUSUAL AGREEMENT SOME EXECUTIVES SPECULATED THAT THE CLINTON HEALTH PLAN AS DESCRIBED AFTER ITS DRAFT'S RELEASE ON FRIDAY WOULD UNIFY AN INDUSTRY THAT HAS FAILED TO EFFECTIVELY LOBBY WASHINGTON BECAUSE OF THE COMPANIES' DIVERSE OPINIONS THE OFFICIALS SAID THEY OPPOSED THE PLAN'S DEMAND FOR STEEP DISCOUNTS FOR DRUGS USED BY MEDICARE RECIPIENTS THEY ALSO ATTACKED A PROPOSAL THAT WOULD ALLOW THE SECRETARY OF HEALTH AND HUMAN SERVICES TO EXCLUDE NEWLY DEVELOPED PRESCRIPTION MEDICINES FROM THE MEDICARE PROGRAM IF THE PRICE WAS DEEMED EXCESSIVE THOSE FACETS ARE PRICE CONTROLS NO MATTER WHAT YOU CALL THEM SAID CHARLES SANDERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE US UNIT OF THE HUGE BRITISH DRUG MAKER GLAXO HOLDINGS PLC THEY ARE REAL SHOWSTOPPERS FOR OUR ABILITY TO DO INNOVATIVE R&D AS DESCRIBED IN THE DRAFT OF THE CLINTON ADMINISTRATION'S HEALTH PLAN A PRESCRIPTION DRUG BENEFIT WOULD BE A STANDARD REQUIRED PART OF ALL INSURANCE PLANS THIS WOULD EXTEND PRESCRIPTION DRUG COVERAGE TO ELDERLY MEDICARE RECIPIENTS FOR THE FIRST TIME BUT IN EXCHANGE THE PLAN WOULD REQUIRE PHARMACEUTICAL COMPANIES TO DISCOUNT DRUG PRICES TO MEDICARE BY ABOUT 15 ABOUT THE LEVEL COMPANIES PROVIDE STATES FOR DRUGS USED BY LOWINCOME MEDICAID PATIENTS MOREOVER THE DRAFT SAYS THE HEALTH AND HUMAN SERVICES SECRETARY CAN NEGOTIATE PRICES OF NEW MEDICINES CONSIDERED EXCESSIVELY HIGH IT PROPOSES THAT THE GOVERNMENT CAN EXCLUDE FROM MEDICARE COVERAGE ANY NEW MEDICINE WHOSE PRICE ISN'T ACCEPTABLE TO THE SECRETARY THOSE TWO REGULATIONS WEREN'T UNEXPECTED SINCE THE ADMINISTRATION HAS BEEN CRITICIZING DRUG PRICES OF DOUBLE THE RATE OF CONSUMER INFLATION DURING THE 1980S BUT COMPANY OFFICIALS HAD HOPED THE ADMINISTRATION WOULD ALLOW THEM TO RESTRAIN DRUG PRICES VOLUNTARILY SINCE MANY COMPANIES HAVE PLEDGED TO LIMIT PRICE INCREASES TO INFLATION SOME EXECUTIVES SAID HOWEVER THAT THEY WERE SURPRISED BY THE DRAFT PLAN SINCE ON SEPT 2 PRESIDENT CLINTON SAID IT WOULDN'T INCLUDE DRUGPRICE CONTROLS AS A RESULT OF THAT STATEMENT INVESTORS BID UP SHARES OF PHARMACEUTICAL COMPANY STOCKS WHICH HAD DROPPED SHARPLY SINCE LATE 1992 SEVERAL ANALYSTS SAID THEY EXPECTED DRUG STOCKS TO TUMBLE ANEW AS A RESULT OF THE NEW DETAILS SOME OF THE INDUSTRY'S MOST RESPECTED LEADERS WERE GUARDED IN THEIR CRITICISMS MAKING A POINT TO APPLAUD WHAT ONE CALLED MR CLINTON'S COURAGE IN TRYING TO EXTEND HEALTHCARE COVERAGE TO UNINSURED AMERICANS WHILE TRYING TO CONTAIN COSTS P ROY VAGELOS THE WIDELY ESTEEMED CHAIRMAN AND CHIEF EXECUTIVE OF MERCK & CO SAID HE DIDN'T WANT TO DISCUSS THE PLAN UNTIL THE PRESIDENT RELEASED IT BUT HE SAID THE DRAFT AS DESCRIBED CONCERNS US SINCE IT EVIDENCES A DISTRUST OF THE FREE MARKETPLACE WHICH RECENTLY HAS BEEN UNDERGOING VIGOROUS AND CONSTRUCTIVE CHANGE MANY EXECUTIVES POINTED OUT THAT THE GROWTH OF LARGE MANAGEDCARE INSURANCE PLANS HAD FORCED DRUG MAKERS TO COMPETE AGGRESSIVELY FOR BUSINESS BY GIVING UNPRECEDENTED DISCOUNTS THIS HAS CAUSED COMPANIES TO INCREASE PRICE DISCOUNTS TO 16 ON AVERAGE FROM 4 A FEW YEARS AGO SEVERAL SAID AS A RESULT OF THE VOLUNTARY PRICECONTROL PLEDGES AND INTENSIFYING COMPETITION DRUG COMPANY PROFIT ON AVERAGE IS EXPECTED TO RISE ABOUT 10 THIS YEAR DOWN FROM AN AVERAGE 17 IN 1991 DR VAGELOS AND OTHERS SAID THEY HAD HOPED THE CLINTON PLAN WOULD ATTACK DRUG PRICES BY ENCOURAGING THE GROWTH OF MANAGEDHEALTH PLANS DR VAGELOS ALSO SAID HE HOPED TO MEET WITH THE PRESIDENT'S TOP HEALTH ADVISERS SOMETHING HE HAS BEEN TRYING TO ARRANGE SINCE EARLY THIS YEAR ADDED JERRY KARABELAS PRESIDENT OF SMITHKLINE BEECHAM PLC'S NORTH AMERICAN OPERATIONS WE NEED TO HAVE A CONSTRUCTIVE DIALOGUE WE HAVEN'T HAD AN OPPORTUNITY TO SPEAK TO ANYBODY ABOUT THESE PROPOSALS YET THE EXECUTIVES SAID THEY EXPECTED EXTENSION OF A DRUG BENEFIT TO ALL AMERICANS TO INCREASE PHARMACEUTICAL SALES BY 3 TO 5 BUT BECAUSE MEDICARE RECIPIENTS REPRESENT ABOUT 25 OF REVENUE PROVIDING A 15 DISCOUNT FOR DRUGS USED BY THE ELDERLY WOULD REDUCE TOTAL SALES IN THE NEXT 15 TO 20 YEARS WE ARE LOOKING AT A REVOLUTION IN THE RESEARCH APPROACHES TO MAJOR DISEASES FOR WHICH WE ONLY HAVE RUDIMENTARY TREATMENTS NOW SAID ANDREW BODNAR PRESIDENT OF SPECIALTY PHARMACEUTICALS AT BRISTOLMYERS SQUIBB CO BUT THAT'S GOING TO REQUIRE INVESTMENT OF ENORMOUS RESOURCES WHY WOULD YOU DO THAT IF YOU COULDN'T BE CERTAIN THAT IN 10 OR 12 YEARS YOU COULD RECOUP YOUR INVESTMENT 9309130099 930913 LAUNDER FACES BRIBERY CHARGE IN CARRIAN CASE BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG EWAN QUAYLE LAUNDER WHO ONCE HEADED THE POWERFUL MERCHANT BANKING ARM OF HONGKONG & SHANGHAI BANKING CORP HAS BEEN REMANDED IN CUSTODY AFTER HIS ARREST IN LONDON IN CONNECTION WITH THE CARRIAN BRIBERY CASE MR LAUNDER 58 YEARS OLD IS AMONG THE MOST PROMINENT INDIVIDUALS TO BE IMPLICATED IN THE CASE WHICH DATES BACK TO THE 1983 COLLAPSE OF THE HONG KONGBASED CARRIAN GROUP AND IS STILL REGARDED AS ONE OF THE COLONY'S WORST BUSINESS FIASCOS HE APPEARED IN BOW STREET MAGISTRATES' COURT SATURDAY AFTER BEING ARRESTED A DAY EARLIER BY NEW SCOTLAND YARD OFFICERS ACTING FOR HONG KONG'S INDEPENDENT COMMISSION AGAINST CORRUPTION OR ICAC MR LAUNDER FACES ONE CHARGE OF ACCEPTING BRIBES TOTALING HK45 MILLION US58 MILLION IN RETURN FOR GRANTING CREDIT FACILITIES TO THE DIVERSIFIED CARRIAN GROUP AND AN ASSOCIATED PROPERTY CONCERN THE EDA GROUP WHICH COLLAPSED IN 1982 AT THE TIME OF THE ALLEGED OFFENSE MR LAUNDER WAS CHIEF EXECUTIVE OF WARDLEY LTD NOW A MERCHANTBANKING UNIT OF HSBC HOLDINGS PLC WARDLEY WAS THE COLONY'S MOST ACTIVE DEALMAKER UNDER MR LAUNDER HIS POSITION ALONG WITH HIS CLOSE RELATIONSHIP WITH THE THENCHAIRMAN OF HONGKONG BANK MICHAEL SANDBERG MADE HIM AN INFLUENTIAL FIGURE MR LAUNDER'S CLIENTS INCLUDED GEORGE TAN AN ENTREPRENEUR WHOSE CARRIAN GROUP ENJOYED A METEORIC RISE IN HONG KONG IN THE LATE 1970S HONGKONG BANK MOVED MR LAUNDER OUT OF HIS WARDLEY POST IN 1983 AFTER HE MADE A SERIES OF UNSUCCESSFUL BIDS TO RESTRUCTURE CARRIAN'S BALLOONING DEBTS AFTER A SHORT STINT AT A LONDON SUBSIDIARY HE RESIGNED FROM THE BANK HE WAS ARRESTED AT HEATHROW AIRPORT FRIDAY ON HIS ARRIVAL FROM BERLIN HONG KONG'S ICAC SAID IN A STATEMENT THAT WARRANTS FOR HIS ARREST WERE ISSUED IN 1989 AND THAT THE SEARCH FOR HIM HAD SPANNED THREE CONTINENTS THE ANTICORRUPTION AGENCY SAID IT PLANS TO SEEK HIS EXTRADITION FROM BRITAIN CARRIAN WHOSE BUSINESSES INCLUDED PROPERTY SHIPPING AND INSURANCE LEFT DEBTS OF ABOUT US12 BILLION AFTER ITS COLLAPSE ITS CHAIRMAN MR TAN 59 YEARS OLD IS AWAITING TRIAL ON CHARGES OF CONSPIRACY TO DEFRAUD AND OFFERING BRIBES CHUNG CHINGMAN CHAIRMAN OF THE NOWDEFUNCT EDA GROUP LEFT HONG KONG AFTER HIS COMPANY FAILED AND IS BELIEVED TO BE RESIDING IN TAIWAN SEVERAL FORMER BANKING EXECUTIVES HAVE BEEN CONVICTED ON CARRIANRELATED BRIBERY OFFENSES THE MOST PROMINENT AMONG THEM IS LORRAIN ESME OSMAN A FORMER DIRECTOR OF BANK BUMIPUTRA MALAYSIA BHD AFTER LOSING A SEVENYEAR BATTLE IN LONDON AGAINST EXTRADITION HE RETURNED LAST DECEMBER TO HONG KONG HE PLEADED GUILTY TO ONE CHARGE OF CONSPIRING TO DEFRAUD A HONG KONG BRANCH OF HIS BANK OF US292 MILLION AND WAS RELEASED IN AUGUST AFTER SERVING ONLY PART OF HIS ONEYEAR SENTENCE 9309130097 930913 CIE DE SUEZ UNIT ANNOUNCES APPOINTEES AT CARR BROKERAGE FIRM SPECIAL TO THE WALL STREET JOURNAL HONG KONG BANQUE INDOSUEZ SAID FRIDAY IT REORGANIZED ITS WI CARR FAR EAST LTD BROKERAGE FIRM IN HONG KONG WITH NEWS THAT IT BECAME THE LATEST FIRM TO RECRUIT A TOP BARING SECURITIES HONG KONG LTD OFFICIAL HELEN CALLENDER'S APPOINTMENT AS DIRECTOR OF REGIONAL RESEARCH FOR WI CARR IS ONLY THE LATEST DEFECTION AT THE BARINGS PLC UNIT WHICH HAS LOST SOME INFLUENTIAL MARKET PLAYERS IN RECENT MONTHS IN SOME NOTEWORTHY MOVES LATE LAST YEAR SALOMON BROTHERS HONG KONG LTD HIRED BARING'S CHIEF WILLIAM PHILLIPS AS MANAGING DIRECTOR AND ECONOMIST MIRON MUSHKAT LEFT BARING LAST MONTH FOR LEHMAN BROTHERS ASIA LTD THE BANK SAID CHANGES AT THE HONG KONG OPERATION OF WI CARR IS PART OF A WORLDWIDE REORGANIZATION AT THE BROKERAGE ANNOUNCED FRIDAY INCLUDING STAFF CUTBACKS AT ITS LONDON AND TOKYO OPERATIONS THE REORGANIZATION WILL ALLOW THE BANK TO FOCUS ITS RESOURCES ON THOSE BROKERAGE UNITS WITH A SIGNIFICANT SHARE OF MARKETS IN WHICH THEY OPERATE BANQUE INDOSUEZ OF FRANCE SAID IN A STATEMENT IT SAID THE WI CARR OPERATION IN HONG KONG WHICH DEALS IN THE REGION INCLUDING JAPAN IS ONE SUCH OPERATION ALSO JOINING THE FIRM FRIDAY WAS TESSA CODRON AS HEAD OF DERIVATIVES TRADING SHE HAD BEEN WITH CRT INTERNATIONAL IN LONDON BANQUE INDOSUEZ IS A UNIT OF FRANCE'S CIE DE SUEZ SA FINANCIAL GROUP 9309130096 930913 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT PACIFIC GAS & ELECTRIC CO TWOPART OFFERING OF 700 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS VIA CS FIRST BOSTON ALLEGHENY POWER SYSTEM TWO PART OFFERING OF 150 MILLION OF DEBT VIA COMPETITIVE BID FLAGSTAR CORP 200 MILLION OF EIGHTYEAR SENIOR SUBORDIATED DEBENTURES AND 200 MILLION OF 10YEAR SENIOR SUBORDINATED DEBENTURES VIA MORGAN STANLEY & CO PM ACQUISITION CORP 200 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA KIDDER PEABODY 7 CO ANTEC CORP INITIAL 74 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP COCACOLA FEMSA SA KOF INITIAL PUBLIC OFFERING OF 49 MILLION AMERICAN DEPOSITARY SHARES EACH REPRESENTING 10 SERIES L SHARES VIA BEAR STEARNS & CO COHEN & STEERS TOTAL RETURN REALTY FUND INITIAL 4 MILLION SHARES VIA MERRILL LYNCH & CO FRONTIER INSURANCE GROUP INC 1320000 SHARES VIA BEAR STEARNS HERZFELD CARIBBEAN BASIN FUND INITIAL 2 MILLION SHARES VIA THOMAS HERZFELD & CO MFS COMMUNICATIONS CO 4 MILLION SHARES VIA SALOMON BROTHERS INC MICROAGE INC 19 MILLION SHARES VIA ROBINSONHUMPHREY CO MINNESOTA POWER & LIGHT CO 1 MILLION SHARES VIA PAINEWEBBER INC NEUREX CORP INITIAL 3 MILLION CLASS A SHARES VIA LEHMAN BROTHERS AND KIDDER PEABODY & CO NUVEEN CA PREMIUM INCOME MUNI FUND 2 INITIAL 100000 SHARES VIA ALEX BROWN NUVEEN PREMIUM INCOME FUND 6 INITIAL 100000 SHARES VIA ALEX BROWN PAIRGAIN TECHNOLOGIES INC INITIAL 3650000 SHARES VIA LEHMAN BROTHERS PENNZOIL CO 5 MILLION SHARES VIA LEHMAN BROTHERS REDMAN INDUSTRIES INC INITIAL 43 MILLION SHARES VIA DILLON READ & CO ROCHESTER GAS & ELECTRIC CORP 1350000 SHARES VIA SMITH BARNEY SHEARSON SIERRA PACIFIC RESOURCES 25 MILLION SHARES VIA LEHMAN BROTHERS VENTRITEX INC 13 MILLION SHARES VIA ROBERTSON STEPHENS & CO NEW JERSEY HEALTH CARE FACILITIES FINANCE AUTHORITY 1069 MILLION OF SERIES F REVENUE BONDS VIA COMPETITIVE BID NEBRASKA PUBLIC POWER DISTRICT 380 MILLION OF REVENUE REFUNDING BONDS VIA A FIRST BOSTON CORP GROUP KENTUCKY STATE PROPERTY & BUILDINGS COMMISSION 350 MILLION OF REVENUE AND REVENUE REFUNDING BONDS VIA A MERRILL LYNCH & CO GROUP CONNECTICUT 335 MILLION OF BONDS VIA A MORGAN STANLEY & CO GROUP ILLINOIS 330 MILLION OF SALES TAX REVENUE BONDS VIA A LEHMAN BROTHERS GROUP GUAM 175 MILLION OF GENERAL OBLIGATION BONDS VIA A LEHMAN BROTHERS GROUP NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 165 MILLION OF SERIES D AND E MENTAL HEALTH SERVICE FACILITIES IMPROVEMENT REVENUE BONDS VIA A CHEMICAL SECURITIES INC GROUP BABYLON NY 125 MILLION OF GENERAL OBLIGATION BONDS VIA A SMITH BARNEY SHEARSON GROUP PANHANDLEPLAINS HIGHER EDUCATION AUTHORITY TEXAS 120 MILLION OF STUDENTLOAN REFUNDING REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 110 MILLION OF SERIES 1993A REVENUE REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP WAKE COUNTY NC 105 MILLION OF HOSPITAL REVENUE BONDS VIA A MERRILL LYNCH GROUP 9309130095 930913 MOODY'S RAISES CHINA DEBT RATINGS CITING STEPS TOWARD MARKET ECONOMY BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED CHINA'S DEBT RATINGS AND MAY ALSO UPGRADE CHINESE INSTITUTIONS BECAUSE OF STEPS BY THAT COUNTRY TOWARD A MARKET ECONOMY CHINA'S FOREIGNCURRENCY DEBT RATING WAS BOOSTED TO SINGLEA3 FROM BAA1 AND AFFECTS THE GOVERNMENT'S RECENTLY ISSUED 30 BILLIONYEN EUROBOND DUE 1998 THE DEBTRATING AGENCY SAID THE MOVE REFLECTS EXPECTATIONS THAT THE CHINESE GOVERNMENT WILL ULTIMATELY SUCCEED IN LEADING THE COUNTRY IN ITS SHIFT TO A FULLFLEDGED MARKET ECONOMY ALTHOUGH IT CAUTIONED THAT THE TRANSITION COULD BE SLOWED BY POLITICAL CONFLICT AND UNEVEN ECONOMIC PERFORMANCE IT WILL TAKE MANY YEARS TO REVAMP ECONOMIC INSTITUTIONS THOROUGHLY REFORM THE FINANCIAL SYSTEM REESTABLISH THE FLOW OF FISCAL RESOURCES TO THE CENTRAL GOVERNMENT AND RESOLVE THE PROBLEM OF SUBSIDIZED STATE ENTERPRISES MOODY'S SAID THE REFORMS COULD TRIGGER POLITICAL COUNTERREACTIONS PERIODS OF CIVIL UNREST OR WIDE SWINGS IN ECONOMIC GROWTH AND INFLATION IT ADDED SOME ANALYSTS SAID THEY WERE CAUGHT OFF GUARD BY THE UPGRADE I MUST SAY IT SURPRISES ME THAT THEY'VE UPGRADED CHINA DURING A PERIOD OF CLEAR DIFFICULTY SAID JOHN PURCELL DIRECTOR OF EMERGING MARKETS AT SALOMON BROTHERS FUND INC HE SAID THE MOVE IS IN STARK CONTRAST TO MOODY'S MORE CONSERVATIVE TREATMENT OF ITALY'S DEBT RATING WHICH HAS BEEN DOWNGRADED FROM TRIPLEA1 TO SINGLEA1 OVER THE PAST 18 MONTHS OTHERS SAID THAT THE UPGRADE BRINGS CHINA'S DEBT RATING TO THE SAME LEVEL AS HONG KONG A MOVE THEY SAID THEY HAD ANTICIPATED IN THE LONGER TERM GIVEN THE UPCOMING RETURN OF THE BRITISH COLONY TO THE MAINLAND IN 1997 BUT DAVID LEVEY ASSOCIATE DIRECTOR OF SOVEREIGN RISK AT MOODY'S SAID THE MOVE WASN'T UNUSUAL WHAT WE TRY TO DO IS TAKE A VERY LONGRANGE VIEW HE SAID THERE IS LESS UNCERTAINTY NOW THAN A FEW YEARS BACK ABOUT GENERAL DIRECTION OF CHINA'S DEVELOPMENT AND DESPITE A RECENT OVERHEATING OF CHINA'S ECONOMY WHICH SWELLED 13 IN 1992 WITH INFLATION SOARING UP TO 20 IN SOME MAJOR CITIES THERE APPEARS TO BE A CLEAR AWARENESS OF THE NEED TO TAKE REFORM HE SAID NATURALLY WE'D BE CONCERNED IF THEY COULDN'T BRING INFLATION UNDER CONTROL HE ADDED BUT OVER TIME NOT OVERNIGHT WE EXPECT THEY WILL HAVE A REASONABLY SOFT LANDING THE OUTLOOK COULD BE FURTHER BRIGHTENED MOODY'S ADDED BY SUCCESSFUL IMPLEMENTATION OF A RECENTLY ANNOUNCED CHINESE GOVERNMENT REFORM PACKAGE THAT TARGETS THE FISCAL FINANCIAL AND ENTERPRISE SYSTEMS INTENDED TO CREATE A TRUE CENTRAL BANK CONVERT EXISTING STATE BANKS INTO GENUINE COMMERCIAL BANKS GUARANTEE A STEADY FLOW OF TAX REVENUE FOR INVESTMENT IN KEY INFRASTRUCTURE PROJECTS AND STIMULATE ENTERPRISE MANAGERS THESE MEASURES COULD INCREASE OVERALL PERCAPITA INCOME WHILE STILL PRESERVING FINANCIAL STABILITY AND A MODERATE EXTERNAL DEBT IT ADDED THE AGENCY'S REVIEW OF CHINA'S INSTITUTIONS WILL FOCUS ON THEIR IMPLICATIONS FOR THE GOVERNMENT'S PLANS TO RESTRUCTURE AND MODERNIZE THE FINANCIAL SYSTEM IT ADDED THOSE UNDER REVIEW INCLUDE THE BAA1 SENIOR LONGTERM FOREIGNCURRENCY DEBT RATINGS OF BANK OF CHINA PEOPLE'S CONSTRUCTION BANK OF CHINA AND CHINA INTERNATIONAL TRUST AND INVESTMENT CORP AS WELL AS THE BAA1 RATING ON LONGTERM DEPOSITS OF THE PEOPLE'S CONSTRUCTION BANK MOODY'S SAID 9309130094 930913 AIR FARES RISE BUT AIRLINES PLAN SWEETER BONUSES DISCOUNTS MAY CONTINUE NORTHWEST AS HOLDOUT MAY DRIVE PRICE BACK BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AIR FARES ROSE OVER THE WEEKEND BUT TRAVELERS SHOULD NOT DESPAIR THE INCREASE OF 20 ON ROUNDTRIP DOMESTIC TICKETS PURCHASED 14 DAYS IN ADVANCE MAY NOT LAST IF NORTHWEST AIRLINES DOESN'T MATCH BY LATE YESTERDAY AFTERNOON THE WINGS HOLDINGS INC UNIT WAS THE ONLY MAJOR CARRIER NOT TO RAISE ITS PRICES TRANS WORLD AIRLINES LED THE FARE INCREASE EVEN IF THE HIGHER FARES STICK NEW FREQUENTFLIER PROMOTIONS WILL TAKE AWAY THE STING OF STEEPER PRICES TWA WILL UNVEIL THIS WEEK A FALL BONUS FOR ITS FREQUENTFLIER MEMBERS HANDING OUT EXTRA MILES UPGRADES AND FREE TICKETS OTHER CARRIERS ARE EXPECTED TO MATCH ALL OR PART OF THE PROMOTION IN ADDITION DISCOUNTS ARE STILL AVAILABLE ALTHOUGH THEY MAY BE CALCULATED OFF A HIGHER BASE FARE IF THE INCREASE STICKS A 25 FALL FARE SALE AIMED AT LEISURE TRAVELERS ENDS WEDNESDAY BUT THE DISCOUNT IS EXPECTED TO BE EXTENDED AND PERHAPS EVEN SWEETENED BECAUSE OF SLACK DEMAND THE CARRIERS' BEHAVIOR RAISING SOME FARES ON ONE HAND WHILE SIMULTANEOUSLY CUTTING OTHERS AND THROWING IN FREE TRIPS TO BOOT HAS BECOME THE STANDARD FOR AN INDUSTRY THAT PRICES ITS PRODUCT IN A CONTRADICTORY MANNER IT REFLECTS THE INDUSTRY'S CONTINUED FINANCIAL TROUBLES DESPITE NARROWED LOSSES IN THE QUARTER ENDED JUNE 30 AND UNDERSCORES HOW BADLY THE AIRLINES HAVE MISCALCULATED THEIR MARKET THE AIRLINES NEED TO RAISE FARES TO OFFSET THEIR HIGH COSTS BUT THE TICKET PRICES CARRIERS NEED TO CHARGE TO TURN A PROFIT ARE HIGHER THAN WHAT MOST PASSENGERS ARE WILLING TO PAY THUS THE INDUSTRY PLAYS FARE GAMES AS IT'S DOING THIS WEEK IN WHICH IT TRIES TO LURE SOME PASSENGERS ABOARD WITH DISCOUNTS WHILE SQUEEZING EVERY DOLLAR OUT OF OTHER FLIERS AIRLINES CALL THIS YIELD MANAGEMENT BUT OTHERS CALL IT CRAZY DR FREUD WOULD HAVE HAD THE TIME OF HIS LIFE IF HE HAD DONE HIS RESEARCH ON AIRLINES IN THE SECOND HALF OF THE 20TH CENTURY THE LEVEL OF SCHIZOPHRENIA IS BIZARRE SAID IVAN M SCHAEFFER PRESIDENT OF WOODSIDE TRAVEL TRUST A CONSORTIUM OF 2600 TRAVEL AGENCIES THE LATEST 20 FARE INCREASE CONTINUES THE TREND OF AIRLINES TRYING TO BUMP UP PRICES ON THE WEEKEND A JUSTICE DEPARTMENT CONSENT DECREE THAT MOST MAJOR AIRLINES ARE FOLLOWING PROHIBITS THEM FROM SIGNALING FUTURE FARE ACTIONS IN THE COMPUTER RESERVATION SYSTEMS INSTEAD CARRIERS ARE RAISING PRICES ON WEEKENDS WHEN FEW TICKETS ARE BOUGHT AND WITHDRAWING THE INCREASE IF RIVALS DON'T MATCH EVEN IF THIS WEEKEND'S FARE INCREASE STAYS INDUSTRY OBSERVERS BELIEVE LEISURE TRAVELERS STILL WILL BE ABLE TO FIND PLENTY OF DISCOUNTS PERHAPS AS MUCH AS 40 OFF FALL FARES THE FALL FARE SALE THAT HAS BEEN IN EFFECT FOR FIVE WEEKS HAS NOT GENERATED ENOUGH TRAFFIC TO FILL THE INDUSTRY'S PLANES AS LEISURE TRAVEL TYPICALLY COLLAPSES AFTER SUMMER INITIAL REACTION TO THE SALE WAS GOOD BUT IT'S TAPERED OFF IN THE LATTER STAGES SAID A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES IF LOW FARES DON'T BRING PEOPLE BACK ON BOARD FREQUENTFLIER MILES MIGHT IN TWA'S NEW PROMOTION WHICH APPLIES TO TRAVEL BETWEEN OCT 1 THROUGH DEC 15 INTERNATIONAL PASSENGERS FLYING FIRSTCLASS WILL RECEIVE THREE MILES FOR EVERY MILE FLOWN OR A FREE ECONOMYCLASS TICKET FOR EVERY 10000 DOMESTIC MILES FLOWN OTHER AIRLINES TYPICALLY MATCH FREQUENTFLIER PROMOTIONS BUT THIS GIVEAWAY MAY NOT PRODUCE A LOT OF EXTRA TRAVEL AIRLINES ALREADY HAVE GIVEN OUT MANY FREE TICKETS FOR FALL TRAVEL THROUGH A SIMILAR FREQUENTFLIER PROMOTION LAST WINTER TOM PARSONS EDITOR OF BEST FARES A TEXAS TRAVEL PUBLICATION SAID THE AIRLINES ARE THROWING FREE TICKETS TO PEOPLE WHO'VE ALREADY GOT FREE TICKETS 9309130093 930913 WORLD MARKETS WHILE US DEBATES ITS EMBARGO STOCK PLAYS ON VIETNAM ARE ALREADY AVAILABLE AROUND ASIA BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG PRESIDENT CLINTON IS TO DECIDE BY TOMORROW WHETHER THE US WILL EXTEND ITS TRADE EMBARGO AGAINST VIETNAM FOR ANOTHER YEAR BUT VIETNAM IS ALREADY OPEN FOR BUSINESS WITH STOCK INVESTORS FROM ANYWHERE IN THE WORLD SOME BROKERAGE ANALYSTS IN SOUTHEAST ASIA SAY SINGAPOREBASED GK GOH STOCKBROKERS PTE LTD IS DISTRIBUTING TO CLIENTS A RESEARCH REPORT BLUNTLY TITLED THIRTYONE LISTED COMPANIES FROM SINGAPORE MALAYSIA AND HONG KONG NOW HAVE INTERESTS IN VIETNAM THAT PITCH MAY BE A LITTLE STRONG JUST THREE MONTHS AGO MANY ANALYSTS IN THE REGION WERE HARDPRESSED TO NAME EVEN TWO LISTED COMPANIES WITH ANY SIGNIFICANT INTERESTS IN THE COUNTRY EVEN SKEPTICS AGREE HOWEVER THAT VIETNAM ITSELF LOOKS LIKE A ROUGH GEM GK GOH EXPECTS VIETNAM'S GROSS DOMESTIC PRODUCT TO JUMP 75 THIS YEAR AFTER RISING 83 IN 1992 ITS TRADE DEFICIT HAS SHRUNK 974 SINCE 1985 TO 30 MILLION DESPITE THE COLLAPSE OF ITS MAIN TRADING PARTNER THE SOVIET UNION AND IN THEORY AT LEAST VIETNAM IS SUDDENLY AMONG ASIA'S WARMEST HOSTS OF FOREIGN INVESTMENT COMPANIES CAN BE 100 FOREIGNOWNED THOUGH SO FAR ALMOST ALL FOREIGN INTERESTS ARE HELD THROUGH JOINT VENTURES WITH LOCAL PARTNERS FOREIGN INVESTMENT ADVISERS ADD THAT VIETNAMESE AUTHORITIES ARE KEEN EVEN IF SLOWED BY THEIR BUREAUCRATIC NATURE TO HELP OUTSIDERS GRAB A FOOTHOLD MOST FOREIGN COMPANIES GAIN THAT FOOTHOLD AROUND HO CHI MINH CITY AS SAIGON IS NOW KNOWN IN OFFICIAL CIRCLES THEY'RE ATTRACTED IN PART BECAUSE OF ITS RESIDENTS' LINGERING FAMILIARITY WITH THE WEST SO FAR SOUTHERN VIETNAMESE HAVE USED THEIR RESURRECTED ENGLISH MOSTLY WITH SINGAPOREANS AND LISTED SINGAPOREAN COMPANIES PROVIDE THE EASIEST BRIDGE TO VIETNAM FOR STOCK INVESTORS BUT SINGAPORE'S STOCKS ARE ALREADY EXPENSIVE AND ITS COMPANIES' AMBITIONS IN VIETNAM ARE GENERALLY YEARS AWAY FROM MAKING THE KIND OF MONEY THAT WILL AFFECT THEIR BOTTOM LINES SINGAPORE LAUNCHED ITS OWN EMBARGO AGAINST VIETNAM WHEN VIETNAMESE TROOPS INVADED CAMBODIA IN 1978 BUT AFTER THE TROOPS' WITHDRAWAL IN 1989 IT QUICKLY EMBRACED HANOI'S LIBERALIZATION EFFORTS SINGAPORE'S BIGGEST SUCCESS SO FAR IS ASIA PACIFIC BREWERIES SINGAPORE PTE LTD WHICH ALREADY HAS CAPTURED 85 OF VIETNAM'S BEER MARKET WITH EXPORTS OF ITS TIGER BRAND TO THE COUNTRY IT'S SCHEDULED TO OPEN A BREWERY IN HO CHI MINH CITY THIS MONTH IN A JOINT VENTURE 40OWNED BY AN AGENCY OF THE LOCAL GOVERNMENT AMONG SINGAPOREAN INVESTMENTS IN VIETNAM ASIA PACIFIC'S FACTORY IS THE MOST LIKELY TO AFFECT THE LONGTERM GROWTH PROSPECTS OF ITS PARENT COMPANY SAYS GK GOH GARY DARWIN A BROKER WHO WATCHES BEVERAGE COMPANIES FOR KAY HIAN JAMES CAPEL PTE LTD AGREESSORT OF IN TERMS OF PROFIT CONTRIBUTION VIETNAM ISN'T SIGNIFICANT NOW HE SAYS BUT ITS GROWTH WILL COME FROM VIETNAM AND CHINA DOES THAT PROSPECT MAKE THE STOCK A DEAL IT'S ACTUALLY VERY EXPENSIVE SAYS MR DARWIN THE SHARES ENDED FRIDAY AT 1340 SINGAPORE DOLLARS US837 24 TIMES HIS ESTIMATE OF ITS 1993 PERSHARE EARNINGS THE VIETNAM PLAY IS LESS CERTAIN AND PRICIER WITH SOME OTHER STOCKS TOUTED BY GK GOH SINGAPORE'S DIVERSIFIED KEPPEL CORP HAS FOUND AN IDEAL APPROACH SAYS THE BROKERAGE HOUSE IN BUILDING RELATIONSHIPS WITH HANOI THROUGH A NUMBER OF SMALL PROPERTY AND TELECOMMUNICATIONS PROJECTS IN THE WORKS BUT THE STOCK IS TRADING AT S9 OR 23 TIMES THE AVERAGE 1993 PERSHARE EARNINGS FORECAST BY 25 ANALYSTS SURVEYED FOR THE ESTIMATES DIRECTORY A REGIONAL FORECASTING MONITOR AND THE PROJECTS HAVEN'T PAID OFF YET ONE OF THEM SAYS THE UNIT SPEARHEADING KEPPEL'S EFFORTS IN VIETNAM STRAITS STEAMSHIP LAND CO WON'T GENERATE REVENUE IN TWO OR THREE YEARS FROM TWO COMMERCIAL DEVELOPMENTS IT'S BUILDING IN HANOI AND HO CHI MINH CITY ADDS MARTIN ADAMS MANAGING DIRECTOR OF VIETNAM FUND MANAGEMENT COONE OF THE SITES IS STILL OCCUPIED BY ANOTHER BUILDING THAT MAKES STOCK IN STRAITS STEAMSHIP LAND AN EXPENSIVE BET ON THE FUTURE OF VIETNAM'S PROPERTY MARKET THE SHARES ENDED FRIDAY AT S336 35 TIMES THE AVERAGE 1993 PERSHARE EARNINGS FORECAST IN THE ESTIMATES DIRECTORY STOCK INVESTORS PERUSING VIETNAM PLAYS SHOULD ALSO KNOW THAT ANNOUNCEMENTS OF PROJECTS DON'T ALWAYS BEAR FRUIT EVERY AGREEMENT MUST BE APPROVED BY A GOVERNMENT COMMITTEE IN HANOI WHICH SEEKS THE ADVICE OF A NUMBER OF OTHER MINISTRIES AND BY THE TIME IT IS APPROVED A PROJECT MAY BE BURDENED WITH CONDITIONS THAT MAKE IT UNFEASIBLE THERE ARE OTHER OBSTACLES ONCE AN INVESTMENT IS APPROVED GK GOH LIKES LUKS INDUSTRIAL CO A HONG KONG COMPANY THAT MAKES TELEVISION SETS IN VIETNAM AND WHOSE SHARES ENDED FRIDAY AT 194 HONG KONG DOLLARS 25 US CENTS A LURING 67 TIMES PROJECTED EARNINGS BUT VIETNAM WATCHERS WARN THAT IT HAS TOUGH COMPETITION IN A COUNTRY WHOSE STREET STALLS ALREADY BULGE WITH SMUGGLED GOODS TOKYO STOCKS ENDED MIXED FRIDAY AFTER THE BANK OF JAPAN'S QUARTERLY TANKAN SURVEY OF BUSINESS SENTIMENT SPURRED A LATE RALLY BUT THE NIKKEI INDEX STRETCHED ITS LOSING STREAK TO FIVE SESSIONS IN LONDON PRICES GAINED SLIGHTLY SUPPORTED BY THE POTENTIAL FOR IMPROVED ECONOMIC GROWTH FOLLOWING THURSDAY'S INTEREST RATE CUTS ACROSS EUROPE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11285 UP 023 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND EUROPE AND A DROP IN ASIA/PACIFIC MARKETS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16153 UP 436 OR 277 WITH PARAMOUNT COMMUNICATIONS OF THE US POSTING A 747 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 12678 DOWN 327 OR 251 WITH ROWAN OF THE US SLIDING 571 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 9261 POINTS THURSDAY DROPPED 760 TO 2081798 ON MONDAY THE NIKKEI ROSE 7461 POINTS TO CLOSE THE MORNING SESSION AT 2089259 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 570 MILLION SHARES MORE THAN DOUBLE THE 24712 MILLION SHARES ON THURSDAY GAINERS EDGED DECLINERS 544461 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH GAVE UP 648 POINTS THURSDAY PICKED UP 116 TO 167750 THE DISMAL TANKAN FUELED SPECULATION THAT JAPANESE INTEREST RATES WILL COME DOWN SOON THAT WOULD AIDE BUSINESSES AND CONSUMERS ALIKE AND HASTEN THE FLOW OF FUNDS INTO THE EQUITIES MARKET MOST OTHER ASIAN AND PACIFIC MARKETS WERE MIXED ON FRIDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX EDGED UP 61 POINTS TO 30373 THE FT 30 INDEX DROPPED 14 TO 23653 FRIDAY'S VOLUME TOTALED 5946 MILLION SHARES COMPARED WITH 7268 MILLION DEALERS SAID THAT THE MARKET WAS ALSO BUOYED BY RELIEF THAT A BUSY WEEK OF CORPORATE RESULTS REPORTS WHICH BROUGHT LITTLE GOOD NEWS WAS OVER IN FRANKFURT PRICES WEAKENED ACROSS THE BOARD AMID DISAPPOINTMENT ABOUT THE GERMAN CENTRAL BANK'S MOVES THE WEIGHTED DAX 30STOCK OF BLUECHIPS DROPPED 1937 POINTS OR 1 TO 186144 ITS SIXTH STRAIGHT DECLINE THE BUNDESBANK'S 010 POINT CUT IN THE RATE FOR SECURITIES REPURCHASE AGREEMENTS WAS SMALLER THAN MANY TRADERS HAD HOPED IN MADRID SHARES PLUNGED 12 THE STOCK OF TELECOMMUNICATIONS GROUP TELEFONICA LOST 3 AFTER ITS RECOMMENDATION WAS DOWNGRADED BY MERRILL LYNCH OTHER EUROPEAN MARKETS FINISHED MIXED OR SLIGHTLY LOWER 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 9309130091 930913 CREDIT MARKETS MANAGERS BEGIN TO AVOID MUNICIPAL DERIVATIVES FEARING LACK OF LIQUIDITY DURING A BEAR MARKET BY ROBERT MCGOUGH AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MUTUAL FUNDS HAVE BEEN GORGING THEMSELVES ON EXOTIC MUNICIPAL BONDS FOR THREE YEARS BUT NOW SOME ARE STARTING TO BACK AWAY FROM THE TABLE FUND MANAGERS USE THESE SOCALLED DERIVATIVE SECURITIES TO HEDGE AGAINST RISING INTEREST RATES AND TO MAKE UP FOR INCOME LOST BECAUSE HIGHERYIELDING BONDS HAVE BEEN CALLED AWAY BUT WITH SOME LONGTERM INTEREST RATES HOVERING NEAR A 26YEAR LOW MANAGERS FEAR THEY MIGHT HAVE TROUBLE SELLING OFF THESE INTRICATE HOLDINGS IF INTEREST RATES MOVE AGAINST THEM THE 30YEAR TREASURY BOND YIELDED 588 FRIDAY DOWN FROM 596 THURSDAY SOME MONEY MANAGERS SAY UNDERWRITERS AND BROKERS OF THE SECURITIES AREN'T PROVIDING ENOUGH PRICING INFORMATION AND MARKET SUPPORT THEY ALSO COMPLAIN THAT UNDERWRITERS SEEM MORE CONCERNED WITH CREATING NEW PRODUCTS THAN WITH MAINTAINING THE MARKET FOR PRODUCTS ALREADY SOLD DAVID JOHNSON A PORTFOLIO MANAGER AT VAN KAMPEN MERRITT IN OAKBROOK TERRACE ILL IS ONE OF THESE MANAGERS VAN KAMPEN MERRITT HAS BEEN A BIG BUYER OF MUNICIPAL DERIVATIVE SECURITIES IT OWNS ABOUT 750 MILLION OF THEM OR 8 OF ITS TOTAL MUNICIPAL ASSETS OF 9 BILLION BUT MR JOHNSON RECENTLY SENT A LETTER TO 12 BROKERDEALERS SAYING THAT VAN KAMPEN MERRITT WON'T BUY MORE UNTIL THE BROKERS IMPROVE THE INFORMATION THEY PROVIDE ON THESE EXOTIC SECURITIES DERIVATIVES ARE COMPLICATED AND OFTEN UNDERGO FAR WIDER PRICE SWINGS THAN ORDINARY MUNICIPAL BONDS IN A COPY OF THE LETTER OBTAINED BY THE WALL STREET JOURNAL MR JOHNSON SAID OUR CONCERNS ARE GROWING BECAUSE THE CURRENT WEAKNESSES IN SERVICING THE PRODUCTS WOULD SEVERELY AGGRAVATE THE LIQUIDITY OF THIS MARKET SEGMENT DURING A BEAR MARKET MR JOHNSON ASKED ABOUT THE LETTER DENIES THAT VAN KAMPEN'S MOVE INDICATED THE FIRM FEELS MUNI DERIVATIVES ARE UNSAFE OR THAT THEY ARE DIFFICULT TO PRICECHARGES SOME MONEY MANAGERS HAVE LEVELED AT THE SECURITIES WE LIKE THESE SECURITIES MR JOHNSON SAYS HIS COMPLAINT HE SAYS IS THAT IT HAS BECOME DIFFICULT TO GET BASIC INFORMATION ON DERIVATIVES TRADING IN THE SECONDARY OR RESALE MARKET HE SAYS THE PROBLEM STEMS IN PART FROM THE SCRAMBLE BY UNDERWRITERS TO KEEP ISSUING MORE DERIVATIVES WHILE DEMAND FOR THEM REMAINS HOT LIKE ANY OTHER HOT MARKET SOMETIMES THE FOCUS MOVES AWAY FROM SUPPORT TO MARKETING THE NEXT PRODUCT MR JOHNSON SAYS A FLURRY OF NEW EXOTIC MUNI SECURITIES APPEARED IN RECENT MONTHS FROM UNDERWRITERS SUCH AS MERRILL LYNCH & CO LEHMAN BROTHERS AND GOLDMAN SACHS & CO LEHMAN BROTHERS ALONE HAS LAUNCHED AT LEAST THREE DIFFERENT MUNI DERIVATIVEPRODUCT PROGRAMS SINCE THE BEGINNING OF THE YEAR UNDERWRITERS ARE LOOKING TO CASH IN ON FALLING INTEREST RATES BY OFFERING PRODUCTS THAT PAY MORE THAN PLAINVANILLA MUNICIPAL BONDS BUT MONEY MANAGERS SAY THE UNDERWRITERS HAVE DONE LITTLE TO CREATE MARKETS FOR THESE PRODUCTS THAT'S IMPORTANT BECAUSE WITHOUT A LARGE AND LIQUID MARKET INVESTORS IN THE NEW SECURITIES WILL HAVE A HARD TIME SELLING THEM THE SMALLER THE MARKET FOR A PARTICULAR SECURITY THE MORE AN INVESTOR WILL HAVE TO DISCOUNT IN ORDER TO UNLOAD IT MOST OF THE DERIVATIVES OWNED BY VAN KAMPEN ARE IN ITS LEVERAGED CLOSEDEND MUNICIPAL BOND FUNDS THOSE DERIVATIVES INCLUDE SOCALLED IMBEDDED CAPS WHICH ARE SUPPOSED TO INCREASE THEIR COUPON PAYMENTS WHEN SHORTTERM INTEREST RATES RISE A RISE IN SHORTTERM RATES COULD BE PARTICULARLY PAINFUL TO HOLDERS OF THESE LEVERAGED BOND FUNDS AND THE DERIVATIVES ARE INTENDED TO HEDGE AGAINST THAT RISK WHILE MR JOHNSON SAYS HE WASN'T WORRIED ABOUT THE ABILITY TO TRADE DERIVATIVES NOW OTHER FUND MANAGERS SAY THEY ARE STAYING AWAY FROM THEM OUT OF FEARS THAT THEY WON'T FIND BUYERS FOR THEM SHOULD THEY NEED TO SELL IN A BEAR MARKET PAMELA HUNTER MANAGER OF VISTA TAXFREE INCOME FUND SAYS SHE HAS LESS THAN 1 OF HER FUND ASSETS IN DERIVATIVES THE PROBLEM I HAVE WITH THEM RIGHT NOW IS THAT THEY'RE REALLY NOT VERY LIQUID AT ALL GIVEN THAT MUTUAL FUNDS ARE THE DOMINANT BUYERS OF DERIVATIVES WE DON'T HAVE ANYTHING WE CAN'T GET OUT OF TOMORROW IN THE PORTFOLIO MOREOVER SHE IS PUT OFF BY THE INSTRUMENTS' COMPLEXITY I DON'T LIKE OWNING THINGS THAT IT TAKES A LAWYER TO INTERPRET SHE SAYS IAN MACKINNON A PORTFOLIO MANAGER AT VANGUARD GROUP SAYS THE DEMAND FOR MANY DERIVATIVES PARTICULARLY A VARIETY KNOWN AS INVERSE FLOATERS COMES FROM FUND MANAGERS WHO WANT TO ARTIFICIALLY LENGTHEN THE MATURITY OF THEIR FUND PORTFOLIOS IN ORDER TO BETTER CATCH THE GAINS FROM FALLING INTEREST RATES THE PROBLEM WOULD COME HE SAYS IF INTEREST RATES RISE AND FUND MANGERS GET FORCED TO SELL BONDS TO MEET REDEMPTIONS YOUR MOTIVATION AS A PORTFOLIO MANAGER IS TO GET RID OF THESE FIRST MR MACKINNON SAYS UNFORTUNATELY THAT'S A MOTIVATION THAT WILL BE SHARED BY EVERY FUND MANAGER THAT OWNS THEM IT WILL BE DIFFICULT TO FIND FRIENDLY BUYERS AT THAT TIME FUND MANAGERS COULD OF COURSE SELL OTHER BONDS TO MEET REDEMPTIONS BY DEPARTING SHAREHOLDERS BUT MR MACKINNON SAYS THAT SELLING OTHER BONDS BUT HOLDING ONTO INVERSE FLOATERS WOULD EFFECTIVELY LENGTHEN A PORTFOLIO'S MATURITY MAKING IT EVEN MORE SUSCEPTIBLE TO PRICE LOSSES SHOULD INTEREST RATES RISE FURTHER UNEXPECTEDLY GOOD NEWS ON INFLATION SENT PRICES OF US TREASURY NOTES AND BONDS SHARPLY HIGHER FRIDAY REVERSING MOST OF THE STEEP DECLINES POSTED THE PREVIOUS DAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1 1/8 POINTS OR MORE THAN 1125 FOR A BOND WITH A 1000 FACE VALUE TO 105 6/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 588 FROM 596 THURSDAY THE 10YEAR NOTE ROSE 1/2 POINT TO 103 18/32 TO YIELD 528 PRICES HAD BEEN SENT TUMBLING THURSDAY IN A BROADBASED WAVE OF PROFITTAKING THAT PUSHED DOWN THE PRICE OF THE 30YEAR BOND NEARLY 1 1/2 POINTS TRADERS HAD TERMED THAT SELLOFF A CORRECTION BUT BULLISH NEWS ON PRODUCER PRICES FROM THE LABOR DEPARTMENT HELPED THE MARKET TO REVERSE THE CORRECTION THE GOVERNMENT REPORTED THAT THE PRODUCER PRICE INDEX A MEASURE OF WHOLESALE PRICES PLUNGED 06 DURING AUGUST THE CULPRIT BEHIND THE DECLINE WAS AN UNEXPECTEDLY LARGE DROP IN TOBACCO PRICES THE OFFICIAL NEWS ON INFLATION WAS UNDERSCORED BY A STEEP DROP IN OIL AND GOLD PRICES AT MIDMORNING MEANWHILE IN THE CORPORATE BOND MARKET JUNK BOND PRICES DROPPED ABOUT HALF A POINT PRICE DECLINES HAVE PLAGUED THE JUNK MARKET FOR MUCH OF THE PAST TWO WEEKS AN EXPECTED FLOOD OF NEW OFFERINGS HAS MADE BUYERS MUCH MORE PICKY A NUMBER OF DEALS PLANNED FOR LAST WEEK AND THE WEEK BEFORE HAD TO BE CANCELED DUE TO LACK OF DEMAND 9309130090 930913 PEPPERAND SALT HAS BEEN HOLDING DOWN MY JOB YOUR ULCERS ARE GRATIS 9309130089 930913 WHO'S NEWS HOW GREENHILL BAGGED FIRST MEGADEAL IN NEW ROLE AT SMITH BARNEY SHEARSON BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROBERT GREENHILL HAS BAGGED HIS FIRST MEGADEAL FOR HIS NEW FIRM OF SMITH BARNEY SHEARSON INC BY ADVISING VIACOM INC ON ITS PROPOSED 82 BILLION ACQUISITION OF PARAMOUNT COMMUNICATIONS INC THE 58YEAROLD MR GREENHILL ONE OF THE TOP DEALMAKERS OF THE 1980S WHO BUILT THE MERGERS DEPARTMENT AT MORGAN STANLEY GROUP INC JUMPED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE SMITH BARNEY SHEARSON UNIT OF PRIMERICA INC IN JUNE ONLY A FEW MONTHS AFTER BEING PUSHED OUT AS MORGAN STANLEY PRESIDENT EARLIER IN THE YEAR HE WAS HIRED BY HIS FORMER CLIENT SANFORD WEILL CHAIRMAN OF PRIMERICA TO BUILD A DEALMAKING CAPABILITY FOR SMITH BARNEY SHEARSON WITH THE ACQUISITION OF THE SHEARSON RETAIL BROKERAGE THIS SUMMER THE FIRM WITH 11000 BROKERS RIVALS MERRILL LYNCH & CO AS THE LARGEST RETAIL BROKERAGE HOUSE MR GREENHILL HAD WORKED WITH SUMNER REDSTONE CHAIRMAN OF VIACOM WHILE AT MORGAN STANLEY WHICH LED VIACOM'S MOST RECENT STOCK OFFERING ABOUT TWO YEARS AGO ONE WAY HE GOT TO KNOW THE CABLE MOGUL WAS BY INVITING HIM TO A TENNIS CAMP IN CARMEL CALIF WITH ABOUT A DOZEN OTHER CLIENTS IN AN INTERVIEW YESTERDAY MR REDSTONE SAID THAT HE AND PARAMOUNT CHAIRMAN MARTIN DAVIS HAD HELD OFFANDON MERGER TALKS FOR THREE YEARS BUT THEY HAD LED NOWHERE IT WAS MR GREENHILL HE SAID WHO BROUGHT HIM AND MR DAVIS TOGETHER IN APRIL IN A PRIVATE DINING ROOM AT MORGAN STANLEY TO LAUNCH THE FINAL TALKS THAT LED TO THIS DEAL BOB WAS RESPONSIBLE FOR THIS TAKING PLACE HIS ROLE WAS UNEQUALED BY ANYONE EACH TIME I GAVE UP ON THE TRANSACTION BOB STUCK TO IT AND INSISTED HE WOULD GO ON SAID MR REDSTONE WHO HAD TRIED TO MAKE A DEAL WITH MR DAVIS ON SEVERAL OCCASIONS DURING THE PAST THREE YEARS WHEN MR GREENHILL LEFT MORGAN STANLEY MR REDSTONE ADDED HE WENT TO SMITH BARNEY AND WE WENT WITH THEM BY SNAGGING THE VIACOM DEAL FROM MORGAN STANLEY MR GREENHILL GETS A NEEDED BOOST TO HIS EFFORTS TO BUILD A CREDIBLE INVESTMENTBANKING ORGANIZATION AT SMITH BARNEY WHICH RECENTLY SEVERED ITS TIES TO SHEARSON'S FORMER INVESTMENT BANKING ARM LEHMAN BROTHERS BY ITSELF THE ONE DEAL DOESN'T ASSURE THAT MESSRS WEILL AND GREENHILL WILL HAVE THE PATIENCE TO BUILD A BROAD INVESTMENT BANKING FRANCHISE PARTICULARLY IF THE STRONG MARKET FOR STOCK AND BOND UNDERWRITING FADES IT ISN'T CLEAR HOW FAR MR WEILL WHO IS KNOWN FOR TIGHT FINANCIAL CONTROLS AND SMOOTHRUNNING BACKOFFICE SYSTEMS IS WILLING TO GO IN SUBSIDIZING BIG SALARIES FOR INVESTMENT BANKERS BEFORE THE PROFITS COME ROLLING IN SEVERAL MEMBERS OF PARAMOUNT'S NEGOTIATING TEAM AGREED THAT MR GREENHILL DESERVED CREDIT WHEN THE TALKS GATHERED SPEED TWO MONTHS AGO GREENHILL ON THIS WAS LIKE AN UNCAGED TIGER SAID ONE HE WAS BOUND AND DETERMINED IT WAS GOING TO HAPPEN HE WAS COMPLETELY FEROCIOUS ON GETTING THIS THING DONE MR GREENHILL ALREADY HAD A STRONG RELATIONSHIP WITH MR DAVIS WHOM HE HAD ADVISED ON PARAMOUNT'S 122 BILLION HOSTILE BID FOR TIME INC WHICH ULTIMATELY FAILED TO DERAIL TIME'S MERGER WITH WARNER COMMUNICATIONS INC MANY RETAIL FIRMS THAT SPECIALIZE IN SELLING SECURITIES TO INDIVIDUAL INVESTORS HAVE TRIED TO BUILD INVESTMENTBANKING ORGANIZATIONS BUT FEW HAVE SUCCEEDED USUALLY BECAUSE THE EFFORT WAS TOO COSTLY AND TIMECONSUMING THE CHIEF EXCEPTION HAS BEEN MERRILL LYNCH WHICH USED ITS BALANCE SHEET TO MAKE BRIDGE LOANS TO GAIN MERGER ASSIGNMENTS AND JUNKBOND BUSINESS IN THE 1980S AND HAS RISEN TO THE TOP OF THE UNDERWRITING RANKS BY BUILDING A WORLDWIDE INSTITUTIONAL SALES AND TRADING CAPABILITY ALONGSIDE ITS HUGE BROKERAGE SALES FORCE SMITH BARNEY SHEARSON COULD BECOME ANOTHER EXCEPTION BECAUSE MR GREENHILL RANKS ALONGSIDE FELIX ROHATYN OF LAZARD FRERES & CO WHO WITH HIS COLLEAGUE STEVEN RATTNER ADVISED PARAMOUNT ON THE DEAL ANNOUNCED YESTERDAY ON THE SHORT LIST OF WALL STREET'S PREMIER MERGER ADVISERS BUT IT STILL ISN'T CLEAR THAT MR GREENHILL CAN PARLAY THAT STANDING AS A MERGERS ACE SO IMPORTANT IN THE 1980S INTO AN ABILITY TO ATTRACT NEW STOCK AND BOND OFFERINGS CURRENTLY WALL STREET'S BIGGEST MONEYMAKER FROM CORPORATE CLIENTS FOR THE SMITH BARNEY SHEARSON BROKERS TO SELL SMITH BARNEY SHEARSON GOT AN ASSIGMENT TO COMANAGE A HIGHPROFILE 15 BILLION PREFERRED OFFERING BY RJR NABISCO HOLDINGS INC THIS SUMMER BUT THE FIRM HASN'T YET BEEN PICKED TO LEAD ANY BIG UNDERWRITINGS MR GREENHILL HAS HIRED EIGHT OTHER INVESTMENT BANKERS FROM MORGAN STANLEY LED BY ROBERT LESSIN HEAD OF INVESTMENT BANKING AND THREE BANKERS FROM OTHER FIRMS BUT OTHER MORGAN STANLEY BANKERS HAVE REJECTED HIS OVERTURES DESPITE REPORTS OF HUGE OFFERS FEATURING GUARANTEES OF MILLIONS OF DOLLARS ANNUALLY OVER SEVERAL YEARS SOME WHO REJECTED OFFERS SAID PRIVATELY THEY DIDN'T WANT TO WORK FOR MR LESSIN AN INTENSE BANKER WHO STARTS HIS DAYS AT 430 AM AND SOMETIMES RETURNS TO WORK AFTER DINNER AT HOME BOTH MR LESSIN AND MR GREENHILL DECLINED TO COMMENT 9309130088 930913 FINANCIALSERVICES COMPANIES SCURRY TO ESTABLISH JOINT VENTURES IN INDIA BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA AS INDIA GRADUALLY FREES ITS FINANCIAL MARKETS FROM A BUREAUCRATIC STRAITJACKET FOREIGN FINANCIALSERVICES COMPANIES ARE SCURRYING TO SET UP JOINT VENTURES AND OTHER ALLIANCES WITH INDIAN PARTNERS I THINK THERE'S A VERY GOOD OPPORTUNITY TO CREATE A PROFITABLE BUSINESS OF A SUBSTANTIAL SIZE SAID TIMOTHY BRENNER A PARTNER AT ASIAN CAPITAL PARTNERS HONG KONG TOWARD THAT END ACP RECENTLY FORMED A JOINT VENTURE WITH STATEOWNED INDUSTRIAL DEVELOPMENT BANK OF INDIA TO PROVIDE INVESTMENTBANKING SERVICES THE SURGE OF FOREIGN INTEREST IS DUE LARGELY TO FINANCIAL DEREGULATION SINCE THE BEGINNING OF THE YEAR BANKS IN INDIA HAVE BEEN ALLOWED TO SET THEIR OWN INTEREST RATES ON LOANS OF MORE THAN 200000 RUPEES 6420 SUBJECT TO A MINIMUM RATE CURRENTLY 15 THE PRIVATE SECTOR HAS BEEN PERMITTED TO PROVIDE MORE BANKING SERVICES AND OPERATE MUTUAL FUNDS WHILE THE STOCK MARKET HAS BEEN OPENED MORE TO FOREIGN INVESTORS MANY FOREIGNERS STILL FIND DOING BUSINESS IN INDIA FRUSTRATING MOREOVER INDIA'S FINANCIAL REFORMS WERE SLOWED BY LAST YEAR'S BIG SECURITIES SCANDAL IN WHICH MONEY WAS SIPHONED FROM BANKS INTO THE STOCK MARKET THROUGH BOGUS BANK RECEIPTS BUT FINANCIAL EXECUTIVES BELIEVE THE GOVERNMENT'S ECONOMIC REFORMS WILL CONTINUE NOW IS THE TIME TO SET UP SHOP THEY SAY WE'RE GETTING IN NOW BECAUSE THE COST OF ENTRY ISN'T SO HIGH AS IT WILL BE IN A FEW YEARS SAID PROMODH BHASIN PRESIDENT OF GE CAPITAL INDIA A UNIT OF GENERAL ELECTRIC CO GE CAPITAL RECENTLY SET UP A CONSUMERFINANCE JOINT VENTURE WITH HOUSING DEVELOPMENT FINANCE CORP OR HDFC OF INDIA THAT VENTURE IS THE BEGINNING OF WHAT GE CAPITAL HOPES WILL BE A BLITZ OF FINANCIALSERVICES VENTURES IN INDIA OUR AIM IS QUITE SIMPLY TO INTRODUCE AS MANY BUSINESSES OF GE CAPITAL AS MAKE SENSE AND TO POSITION OURSELVES FOR THE LONG RUN MR BHASIN SAID THE LIST LIKELY WILL INCLUDE POWER PROJECT FINANCING EQUIPMENT MANAGEMENT AND LEASING AND INSURANCE WHEN THE GOVERNMENT PERMITS GE CAPITAL PLANS TO USE 100 MILLION OF EQUITY PARTLY FOR THE JOINT VENTURE BUT MOSTLY TO FINANCE POWER PROJECTS FOR WHICH GE HOPES TO SUPPLY EQUIPMENT THIS IS JUST FOR STARTERS SAID MR BHASIN WE'LL BRING IN EQUITY AS AND WHEN WE NEED IT IN MANY SECTORS SERVICES THAT OTHER ASIAN COUNTRIES TAKE FOR GRANTED ARE BARELY AVAILABLE IN INDIA FOR INSTANCE APART FROM CAR LOANS OFFERED BY CITICORP AND A FEW OTHERS THERE HAS BEEN LITTLE ORGANIZED CONSUMER FINANCING ON THE MARKET THE GEHDFC VENTURE HOPES TO FILL THAT GAP WE HOPE TO DO 700 MILLION TO 800 MILLION RUPEES OF LENDING IN THE FIRST FULL YEAR OF BUSINESS GOING UP TO 25 BILLION TO THREE BILLION RUPEES IN THE SECOND YEAR SAID SATISH MEHTA OF HDFC THE FIRST LOANS ARE EXPECTED TO BE GRANTED BY YEAR END MR MEHTA SAID THE COMPANY IS LOOKING TO GE CAPITAL'S STRENGTHS IN PRODUCT DEVELOPMENT MARKETING AND TECHNOLOGY IN RETURN HDFC OFFERS LOCAL KNOWLEDGE AND A NETWORK OF 26 BRANCH OFFICES THAT REASONING IS FAIRLY TYPICAL OF THE RECENT ALLIANCES FOREIGN INVESTORS TEND TO SEEK OUT LOCAL EXPERTISE TO DEMYSTIFY THE VAST AND COMPLEX INDIAN MARKET FOR THE INDIAN PARTNERS ALLIANCES PROVIDE CAPITAL AND A SHORTCUT TO THE LATEST FINANCIAL PRODUCTS AND TECHNOLOGIES TIME IS BECOMING A MAJOR COST INPUT SAID KA CHAUKAR MANAGING DIRECTOR OF ISEC A NEW JOINT VENTURE BETWEEN A UNIT OF JP MORGAN & CO AND INDUSTRIAL CREDIT & INVESTMENT CORP OF INDIA IF I'M WILLING TO GO AT MY PACE I DON'T NEED A JOINT VENTURE BUT IF WE WANT TO LEAPFROG JP MORGAN WILL BE A GREAT HELP MR CHAUKAR ALSO PREDICTS THAT FINANCE COMPANIES WILL NEED MORE ACCESS TO CAPITAL IF YOU'RE GOING TO PLAY A BIG GAME HE SAYS YOU NEED BIG MONEY IN MARCH THE GOVERNMENT ALLOWED THE MARKET TO DETERMINE THE RUPEE'S EXCHANGE RATE FOR FOREIGNTRADE TRANSACTIONS THAT MEANS MANY INDIAN COMPANIES NEED NEW SKILLS TO CONTROL FOREIGNEXCHANGE RISKS SOME ARE SETTING UP TREASURY DEPARTMENTS BUT MANY NEED OUTSIDE ADVICE A LOT OF COMPANIES ARE LOOKING AT THEIR BOTTOM LINES A LITTLE DIFFERENTLY SAYS TIRATH MULCHANDANI OF TIGAN GAIACORP CURRENCY MANAGEMENT LTD A NEW JOINT VENTURE OWNED BY GAIACORP AS OF DENMARK MR MULCHANDANI AND HIS SON NANIK MULCHANDANI WHO OWNS TIGAN LTD HONG KONG THEY'RE LOOKING AT CURRENCIES AS AN ASSET THEY CAN UTILIZE AND EVEN MAKE GAINS FROM THE ELDER MR MULCHANDANI SAYS THE JOINT VENTURE AIMS IN ITS FIRST THREE YEARS TO PROVIDE RISKMANAGEMENT SERVICES TO ABOUT 10 COMPANIES EACH WITH A MINIMUM FOREIGNEXCHANGE EXPOSURE OF 20 MILLION OTHER FINANCIAL COMPANIES ARE POSITIONING THEMSELVES TO ENTER A POTENTIALLY VAST FIELD PRIVATIZATION FOR INSTANCE 20TH CENTURY VENTURE CAPITAL CORP OF BOMBAY RECENTLY SOLD 5 OF ITS EQUITY TO THE INTERNATIONAL FINANCE CORP AN ARM OF THE WORLD BANK PARTLY TO TAP THAT INSTITUTION'S EXPERIENCE WITH PRIVATIZATION ELSEWHERE INCLUDING EASTERN EUROPE 9309130087 930913 THE CLINTON HEALTH PLAN MALPRACTICE PLAN STRIVES TO PLEASE ALL BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION SORTED THROUGH DOZENS OF DIFFERENT PROPOSALS TO OVERHAUL THE MEDICALMALPRACTICE SYSTEM AND ENDORSED ASPECTS OF NEARLY ALL OF THEM THE SOMETHINGFOREVERYONE APPROACH INCLUDES REQUIRING THAT EVERY HEALTHINSURANCE PLAN ADOPT OUTOFCOURT MEANS OF RESOLVING MALPRACTICE CLAIMS THE CLINTON PROPOSAL ALSO WOULD PUT SOME LIMITS ON THE SIZE OF JURY AWARDS AND LAWYERS' FEES AND IT WOULD PROMOTE EXPERIMENTS WITH MORE RADICAL IDEAS SUCH AS FREEING DOCTORS OF MALPRACTICE LIABILITY IF THEY CAN SHOW THAT THEY FOLLOWED PRESCRIBED PRACTICE GUIDELINES EACH OF THESE PROPOSALS HAS BEEN TRIED IN SOME STATES BUT NO STATE HAS ADOPTED THEM IN TANDEM AS THE CLINTON PLAN ENVISIONS THE RISK OF SUCH A MULTIFACETED PLAN HEALTH SPECIALISTS SAY IS THAT IT MIGHT CREATE A LABYRINTHINE BUREAUCRACY THAT WOULD INCREASE RATHER THAN REDUCE HEALTH COSTS IN ADDITION IT ISN'T LIKELY FULLY TO PLEASE TWO OF THE MAJOR LOBBYING GROUPS WITH INTERESTS IN MALPRACTICE REFORM DOCTORS AND PLAINTIFFS' LAWYERS IT'S AN ATTEMPT TO KEEP AS MANY PEOPLE AS HAPPY AS POSSIBLE AND WILL PROBABLY END UP KEEPING EVERYONE EQUALLY UNHAPPY SAID JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCATION KEEPING INTEREST GROUPS HAPPY IS ESPECIALLY CRITICAL IN THE AREA OF MALPRACTICE REFORM BECAUSE THE ISSUE IS A POLITICAL HOTBUTTON FOR THE MEDICAL PROFESSION MALPRACTICE VERDICTS SETTLEMENTS AND LEGAL COSTS AMOUNT TO ONLY A SMALL PERCENTAGE OF THE MORE THAN 800 BILLION THE NATION SPENDS YEARLY ON HEALTH CARE BUT MANY DOCTORS VIEW HIGH MALPRACTICE INSURANCE PREMIUMS AND THE CONSTANT THREAT OF LIABILITY AS ONEROUS AND UNFAIR AS A RESULT MALPRACTICE RELIEF HAS BECOME IMPORTANT AS A POLITICAL CHIP TO ENLIST PHYSICIAN SUPPORT FOR OTHER HEALTH REFORMS AT BEST THE PRESIDENT'S MALPRACTICE PROPOSAL IS LIKELY TO WIN MIXED SUPPORT FROM DOCTORS THE PROPOSAL ADVOCATES SEVERAL MEASURES THAT DOCTORS PUSHED FOR INCLUDING SOME LIMITS ON LAWYERS' FEES AND A PROVISION ALLOWING DAMAGES TO BE PAID OVER A PERIOD OF TIME RATHER THAN IN A LUMP SUM IT WOULD ALSO PREVENT INJURED PATIENTS FROM GETTING PAID TWICE FOR THE SAME INJURY BOTH BY THEIR DOCTOR'S MALPRACTICE INSURANCE AND BY THEIR OWN HEALTHINSURANCE PLAN BUT DOCTORS LOBBIED ESPECIALLY HARD FOR A REFORM THAT ISN'T INCLUDED A CAP ON THE MONEY THAT INJURED PATIENTS CAN GET FOR THEIR PAIN AND SUFFERING ALSO THE PROPOSAL STILL WOULD ALLOW LAWYERS TO TAKE UP TO ONETHIRD OF A TOTAL MALPRACTICE AWARD A MORE GENEROUS COMPENSATION THAN MANY STATES NOW ALLOW THE PROPOSAL IS PROBABLY THREEQUARTERS OF A LOAF SAID THE AMA'S DR TODD THE DISAPPOINTMENT IS THAT THEY WOULDN'T GO THE FINAL STEP AND PUT A LIMIT ON PAIN AND SUFFERING AWARDS THE CLINTON PROPOSAL ALSO WOULD MAKE IT MORE DIFFICULT FOR INJURED PATIENTS TO GET TO COURT AN APPROACH THAT IS CERTAIN TO TRIGGER VIGOROUS OPPOSITION BY PLAINTIFFS' LAWYERS AND CONSUMER GROUPS FIRST SOMEONE CLAIMING A MALPRACTICERELATED INJURY WOULD HAVE TO GET AN AFFIDAVIT FROM A DOCTOR STATING THAT THE TREATING PHYSICIAN'S CARE WASN'T UP TO PAR IN ADDITION A PATIENT WOULD HAVE TO SUBMIT THE CLAIM TO AN OUTOFCOURT PANEL THOUGH HE OR SHE COULD THEN GO TO COURT IF DISSATISFIED WITH THE PANEL'S RULING THE PROPOSAL ISN'T SPECIFIC ABOUT WHO WOULD SIT ON THE PANELS BUT PANELS SET UP BY STATE REFORMS TYPICALLY HAVE INCLUDED BOTH DOCTORS AND LAY PERSONS EVERYTHING THAT'S IN THE CLINTON PROPOSAL WOULD MAKE IT MORE DIFFICULT FOR A VICTIM TO BE ABLE TO RECOVER IF THEY'VE BEEN INJURED SAID BARRY J NACE PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA IN WASHINGTON THE ASSOCIATION HAS LONG MAINTAINED THAT LIABILITY REFORM IS A SEPARATE ISSUE FROM HEALTH REFORM AND THAT IT SHOULDN'T BE INCLUDED IN THE PRESIDENT'S HEALTH PLAN MANDATORY ALTERNATIVE DISPUTE RESOLUTION ADDS AN EXTRA LAYER OF BUREAUCRACY AND EXPENSE FOR INJURED PLAINTIFFS MR NACE SAID AND EVEN A RELATIVELY SMALL LIMIT ON FEES HE SAID WILL DISSUADE SOME LAWYERS FROM TAKING MALPRACTICE CASES AND WILL MAKE IT HARDER FOR INJURED PEOPLE TO GET REPRESENTATION IN STATES WITHOUT SUCH LIMITS SOME LAWYERS CURRENTLY TAKE 40 OR MORE OF THE INJURY AWARD THE MALPRACTICE PROPOSAL ALSO CALLS FOR EXPERIMENTATION WITH TWO MORE RADICAL REFORMS FIRST IT RECOMMENDS THE USE OF FEDERAL FUNDS TO SUPPORT STATES' EFFORTS TO TEST SOCALLED ENTERPRISE LIABILITY THAT IDEA WOULD SHIFT LIABILITY FOR MEDICAL INJURIES FROM DOCTORS TO HEALTH PLANS HOPING TO IMPROVE THE MONITORING OF PHYSICIANS' CARE BY HOSPITALS AND HEALTH MAINTENANCE ORGANIZATIONS MR CLINTON'S HEALTHCARE TASK FORCE PREVIOUSLY FLIRTED WITH ENTERPRISE LIABILITY AS AN OVERALL APPROACH TO MALPRACTICE REFORM BUT DISCARDED THE IDEA IN THE FACE OF OPPOSITION FROM PHYSICIANS THE PRESIDENT HAS ENDORSED A SEPARATE PILOT PROGRAM MODELED ON A NOVEL REFORM UNDER WAY IN MAINE THE PROGRAM WOULD GIVE LIABILITY PROTECTION TO DOCTORS WHO FOLLOW GOVERNMENTPRESCRIBED CHECKLISTS ON HOW TO TREAT PATIENTS ONCE WARY OF STATEISSUED CHECKLISTS PHYSICIANS' GROUPS HAVE BEGUN TO ENDORSE THE EXPERIMENTS AS LONG AS DOCTORS HAVE A ROLE IN DRAFTING THE GUIDELINES BUT THE DRAFT DOESN'T SPECIFY WHETHER DOCTORS WOULD HAVE SUCH A ROLE 9309130086 930913 BUSINESS BRIEF WINGS HOLDINGS INC NORTHWEST AIRLINES REPORTS AUGUST TRAFFIC FELL 124 NORTHWEST AIRLINES SAID AUGUST TRAFFIC FELL 124 FROM A YEAR EARLIER THE UNIT OF CLOSELY HELD WINGS HOLDINGS INC OF MINNEAPOLIS SAID IT FLEW 571 BILLION REVENUE PASSENGER MILES COMPARED WITH 652 BILLION REVENUE PASSENGER MILES IN AUGUST 1992 WHICH IS WHEN AN INDUSTRY FARE WAR INFLATED AIRLINE TRAVEL A REVENUE PASSENGER MILE REPRESENTS ONE PAYING PASSENGER FLOWN ONE MILE NORTHWEST SAID THE PERCENTAGE OF SEATS OCCUPIED IN AUGUST DROPPED 63 PERCENTAGE POINTS TO 745 TRAFFIC DURING THE FIRST EIGHT MONTHS OF THE YEAR FELL BY LESS THAN 1 TO 396 BILLION REVENUE PASSENGER MILES FROM 398 BILLION REVENUE PASSENGER MILES FOR THE SIMILAR 1992 PERIOD 9309130085 930913 COMMODITIES FATE OF GLOBEX IS RESTING UPON CBOT DECISION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A YEAR AFTER ITS LAUNCH THE FATE OF THE UNDERACHIEVING GLOBEX COMPUTERIZED FUTURES TRADING NETWORK APPEARS TO REST ON THE ABILITY OF THIS CITY'S TWO FUTURES MARKETS TO LAY ASIDE THEIR RIVALRY AND PROTECTIONIST TRADITIONS THE CHICAGO MERCANTILE EXCHANGE AND CHICAGO BOARD OF TRADE PURVEYORS OF FUTURES CONTRACTS BASED ON US INTEREST RATES STOCKS AND CURRENCIES ARE PARTNERS WITH REUTERS HOLDINGS PLC IN GLOBEX WHICH HAS BEEN TOUTED AS THE WORLD'S FIRST INTERNATIONAL ELECTRONIC TRADING SYSTEM YET TRADING ON GLOBEX HAS BEEN SLUGGISH FROM THE START AND NOW THE CBOT IS COMING UNDER PRESSURE FROM THE CME AND OTHERS TO ABANDON POLICIES THAT MANY FEEL HINDER THE SYSTEM'S GROWTH THE QUESTION OF THE MOMENT IS WHETHER THE CBOT WILL ALLOW EUROPE'S BIGGEST FUTURES MARKET THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE OR LIFFE TO TRADE ITS HUGE CONTRACT BASED ON THE BENCHMARK GERMAN BUND ON THE GLOBEX SYSTEM GLOBEX IS MEANT TO BE THE GLOBAL VILLAGE OF TRADE FOR THE MAJOR CONTRACTS OF THE WORLD SAYS JOHN F SANDNER CHAIRMAN OF BOTH THE CME AND GLOBEX THE BUND BEING MISSING FROM THAT COMPLEX WOULD BE A SERIOUS BLOW TO GLOBEX IF IT WERE ON THERE GLOBEX WOULD TAKE A GIANT LEAP FORWARD TOWARD BECOMING A GLOBAL MARKETPLACE UNDER THE GLOBEX CONTRACT THE CBOT HAS AN EXCLUSIVE RIGHT TO TRADE BUND FUTURES CONTRACTS ON THE SYSTEM THE CHICAGO EXCHANGE BEST KNOWN FOR ITS US TREASURYBOND FUTURES CONTRACT DOESN'T YET TRADE A BUND CONTRACT BUT PLANS TO LAUNCH ONE NEXT YEAR SIMILARLY THE CME HAS AN EXCLUSIVE RIGHT TO USE GLOBEX TO TRADE THE EUROMARK FUTURES CONTRACT ANOTHER BIG LIFFE CONTRACT BASED ON SHORTTERM GERMAN INTEREST RATES BUT THE CME HAS UNILATERALLY WAIVED THIS RIGHT IN AN EFFORT TO PERSUADE THE LONDON EXCHANGE TO JOIN THE SYSTEM AT AN INTERNATIONAL FUTURES CONFERENCE IN BURGENSTOCK SWITZERLAND LAST WEEK CBOT CHAIRMAN PATRICK H ARBOR APPEARED TO GIVE SOME GROUND ON THE ISSUE IT WAS ALWAYS OUR POSITION THAT IF OTHER ISSUES WERE RESOLVED WE WOULD CONSIDER RELINQUISHING EXCLUSIVITY ON THE BUND CONTRACT MR ARBOR SAYS IT'S MY PERSONAL FEELING THAT WE WOULD BE FAVORABLE TO IT STILL MR ARBOR MAY HAVE A TOUGH TIME SELLING HIS VIEW TO CBOT DIRECTORS AND TRADERS WHO HAVE A HISTORY OF SHOOTING DOWN PROPOSALS THAT SEEM TO GIVE UP THE EXCHANGE'S TURF THE CBOT'S CURRENT POSITION IS THAT IT WON'T GIVE UP THE BUND CONTRACT UNTIL OTHER ISSUES ABOUT GOVERNANCE OF GLOBEX AND THE LENGTH OF LIFFE'S COMMITMENT TO THE SYSTEM ARE RESOLVED LIFFE SUSPENDED NEGOTIATIONS ABOUT JOINING GLOBEX LAST MONTH AFTER THE CBOT REFUSED TO RELINQUISH ITS BUND EXCLUSIVITY UNILATERALLY AND LIFFE'S OFFICIALS SAY THEIR STANCE IS UNCHANGED THEY WON'T NEGOTIATE ABOUT JOINING GLOBEX UNLESS THE CBOT FIRST AGREES TO GIVE UP THE CONTRACT WE'D BE INTERESTED IN REOPENING NEGOTIATIONS IF IT WAS ABSOLUTELY CLEAR THAT THE BUND CONTRACT WAS IN THE FRAME SAYS DANIEL HODSON LIFFE'S CHIEF EXECUTIVE BUT FROM OUR POINT OF VIEW THERE'S NO POINT IN GOING THROUGH LONG AND DIFFICULT NEGOTIATIONS TO FIND THE BUND WAS NEVER THERE IN THE FIRST PLACE IT IS CRUCIAL THAT LIFFE JOIN GLOBEX MR SANDNER SAYS BECAUSE THE SYSTEM WAS DESIGNED TO DO MOST OF ITS BUSINESS DURING EUROPEAN AND ASIAN TRADING HOURS WHEN THE CHICAGO MARKETS ARE CLOSED TO ATTRACT VOLUME DURING THESE HOURS HE SAYS THE SYSTEM NEEDS TO INCLUDE THE BIG FUTURES CONTRACTS OF EUROPE AND THE FAR EAST AT THE MOMENT ONLY ONE FOREIGN FUTURES EXCHANGE PARTICIPATES IN GLOBEX THE PARISBASED MARCHE A TERME INTERNATIONAL DE FRANCE OR MATIF WHICH LISTS ITS CONTRACTS BASED ON FRENCH BONDS ON THE SYSTEM TRADING OF MATIF CONTRACTS ON THE SYSTEM DWARFS ACTIVITY IN SUCH CHICAGO CONTRACTS AS THE CBOT'S TBOND FUTURES AND THE CME'S EURODOLLAR FUTURES ON SHORTTERM US INTEREST RATES MATIF CONTRACTS ARE TRADING AT A PACE OF ABOUT 23000 CONTRACTS A NIGHT COMPARED WITH A MEAGER 3200 CHICAGO CONTRACTS A NIGHT THE WEAKNESS OF TRADING IN CHICAGO CONTRACTS ISN'T A PROBLEM MR SANDNER ASSERTS IF MORE OF THE BIG CONTRACTS OF EUROPE AND ASIA CAN BE ENLISTED FOR THE SYSTEM YET SOME OF THE FOREIGN FIRMS WHOSE BUSINESS GLOBEX WANTS TO ATTRACT ARE SKEPTICAL OF THIS NOTION IF LIFFE CONTRACTS ARE LISTED ON GLOBEX I DON'T EXPECT IMMEDIATE VOLUME INCREASES SAYS GAKU NITTA SENIOR VICE PRESIDENT OF YAMAICHI INTERNATIONAL AMERICA INC THE LIFFE PRODUCTS WOULD START VERY SLOWLY I BELIEVE MR SANDNER IS ABOUT TO BEGIN A TRIP THROUGH ASIA TO SELL INVESTORS THERE ON GLOBEX THUS FAR GLOBEX HASN'T WON PERMISSION FROM THE JAPANESE MINISTRY OF FINANCE TO LIST THE HUGE FUTURES CONTRACTS OF JAPANBASED ON JAPANESE STOCKS AND INTEREST RATES ON THE SYSTEM BUT IT RECENTLY WON APPROVAL TO INSTALL GLOBEX TRADING TERMINALS IN JAPAN MR SANDNER SAYS GLOBEX WAS DESIGNED IN LARGE PART FOR THE PACIFIC RIM TIME ZONE HE SAYS SO FAR WE HAVEN'T HAD THE TERMINALS THERE TO DO MUCH TRADING BUT NOW WE HAVE THE OPPORTUNITY TO PUT THE TERMINALS THERE WHICH SHOULD HELP A LOT MR NITTA AGREES THAT INSTALLING GLOBEX TERMINALS IN JAPAN WOULD BE A BOOST FOR THE SYSTEM BUT HE DOESN'T VIEW THE STEP AS A PANACEA FOR A JAPANESE FIRM LOCATING A TERMINAL IN TOKYO IS FOR HOUSE PROPRIETARY TRADING NOT FOR BROKERING TRADES HE SAYS FOR EXAMPLE WHEN JAPANESE SECURITIES FIRMS FILL CUSTOMERS' ORDERS FOR EURODOLLAR FUTURES THEY TEND TO USE THE EURODOLLAR MARKET AT THE SINGAPORE MONETARY EXCHANGE RATHER THAN GLOBEX MR NITTA SAYS IRONICALLY THAT IS POSSIBLE ONLY BECAUSE THE CME HAS AN AGREEMENT WITH THE SINGAPORE EXCHANGE TO ALLOW CHICAGO AND SINGAPORE EURODOLLAR CONTRACTS TO DIRECTLY OFFSET ONE ANOTHER AND BECAUSE THIS SOCALLED MUTUAL OFFSET AGREEMENT BRINGS ASIAN BUSINESS TO THE CME MR SANDNER IS UNWILLING TO REVOKE IT SIMPLY TO BENEFIT GLOBEX MEANWHILE MR ARBOR AND HIS COLLEAGUES AT THE CBOT MUST NOW DECIDE WHETHER TO ABANDON THEIR REFUSAL TO GIVE UP THEIR BUND EXCLUSIVITY LIFFE EXECUTIVES PLAN TO VISIT CHICAGO IN OCTOBER BUT THEY SAY THEY WILL ONLY NEGOTIATE ABOUT JOINING GLOBEX IF THE CBOT'S POSITION HAS CHANGED 9309130084 930913 POLITICS & POLICY THE CLINTON HEALTH PLAN FORGING OF NATIONAL MEDICAL REFORM PROMISES TO BE AN OPEN SUBSTANTIVE BIPARTISAN DEBATE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEALTHCARE POLICY BAZAAR IS ABOUT TO OPEN HIS NEW REFORM PLAN FINALLY IN HAND PRESIDENT CLINTON IS PREPARING TO EMBARK ON A NOHOLDSBARRED CAMPAIGN TO CONVINCE AMERICANS THEY NEED TO PERFORM SURGERY ON THEIR HEALTHCARE SYSTEM THE ESSENCE OF THE COMING ONSLAUGHT IS SUMMARIZED IN THE SECOND SENTENCE OF THE 239PAGE DRAFT OF THE PLAN AMERICANS LACK SECURITY BUT BEHIND THIS BLITZ WILL LURK A STRIKINGLY DIFFERENT POLITICAL REALITY EVEN AS IT SELLS ITS PACKAGE THE ADMINISTRATION IS SIGNALING THE PATH IS OPEN TO NEGOTIATION COMPROMISE AND CHANGE THAT WILL PRODUCE A FAR DIFFERENT POLITICAL DYNAMIC THAN WHAT OCCURRED DURING THE SUMMER BUDGET WRANGLING THE DEBATE PROMISES TO BE MARKED LESS BY PURE PARTISAN POSTURING AND MORE BY SUBSTANTIVE GIVE AND TAKE WE KNOW FROM THE BEGINNING THAT THIS IS GOING TO HAVE TO BE AN INCLUSIVE PROCESS SAYS GEORGE STEPHANOPOULOS A SENIOR ADVISER TO MR CLINTON THIS IS GOING TO BE A TRUE DEBATE REPUBLICANS SENSE THE DIFFERENCE AND ARE REACTING ACCORDINGLY WHATEVER COMPLAINTS THEY REGISTER ABOUT THE CLINTON PLAN IN THE NEXT FEW WEEKS AND THERE WILL BE MANY REPUBLICANS ARE GOING TO BE AS EAGER AS DEMOCRATS TO TELL VOTERS THEY PRODUCED HEALTHCARE REFORM BY THE 1994 CONGRESSIONAL ELECTIONS I THINK IT'S TERRIBLY IMPORTANT THAT WE MOVE AHEAD WITH THIS HEALTHCARE REFORM STRESSED RHODE ISLAND REPUBLICAN SEN JOHN CHAFEE YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY SEN CHAFEE THE GOP'S CONGRESSIONAL POINT MAN ON HEALTH CARE CALLED THE CLINTON PLAN A GOOD BASIS ON WHICH TO PROCEED BUT ADDED IT'S OBVIOUSLY GOING TO BE CHANGED FEW ADMINISTRATION OFFICIALS WOULD DISAGREE WITH THAT PREDICTION IN FACT THE ADMINISTRATION'S INTERNAL TIMETABLE ACKNOWLEDGES THAT THERE WILL BE EXTENSIVE NEGOTIATION THOUGH HILLARY RODHAM CLINTON THE PRIME AUTHOR OF THE ADMINISTRATION PLAN DECLARED IN AT LEAST ONE LATESUMMER MEETING WITH LAWMAKERS THAT SHE WANTED A VOTE BY CHRISTMAS ADMINISTRATION AIDES PRIVATELY ACKNOWLEDGE THAT THE VOTES WILL COME NEXT YEAR AFTER DETAILED HEARINGS BY A SERIES OF CONGRESSIONAL COMMITTEES THE ADMINISTRATION'S GOAL IS TO USE THESE MONTHS OF DEBATE TO CONDUCT A KIND OF NATIONAL SEMINAR ON HEALTH CARE ITS PURPOSE WILL BE TO CONVINCE AMERICANS OF THE WISDOM OF THE CLINTONS' OVERALL APPROACH WHICH INCLUDES A PACKAGE OF GUARANTEED BENEFITS FOR ALL CITIZENS MANDATORY EMPLOYER COVERAGE OF MANY PREMIUM COSTS AND REGIONAL ALLIANCES TO HELP EMPLOYERS GET A BETTER DEAL IN BUYING HEALTHCARE COVERAGE I THINK THERE'S GOING TO BE A SPACE FOR CONSIDERATION OF THE HEALTHCARE PLAN WHICH WILL BE LESS FRACTIOUS THAN FOR THE BUDGET PLAN SAYS STANLEY GREENBERG THE PRESIDENT'S POLLSTER I THINK IT WILL GET A HEARING FOR SEVERAL MONTHS IN FACT A PERIOD OF DEBATE MAY BE NEEDED BY THE ADMINISTRATION TO WIN OVER A SKEPTICAL PUBLIC A NEW TIME MAGAZINE/CNN POLL INDICATES THAT ONLY 15 OF THOSE POLLED HAD A LOT OF CONFIDENCE IN MR CLINTON'S ABILITY TO REFORM THE HEALTHCARE SYSTEM AND ONLY 19 SAID THEY THOUGHT THE QUALITY OF HEALTH CARE WOULD IMPROVE UNDER HIS PLAN ABOVE ALL THE ADMINISTRATION'S CAMPAIGN WILL STRESS THE WORD SECURITY ADMINISTRATION ADVISERS SENSE THAT HOWEVER SATISFIED THEY MAY BE WITH THEIR CURRENT COVERAGE MIDDLECLASS AMERICANS ARE INCREASINGLY HAUNTED BY THE FEAR THEY WILL LOSE HEALTH INSURANCE IF THEY SWITCH JOBS OR ARE LAID OFF OR SIMPLY BECAUSE THEIR EMPLOYERS FIND IT TOO COSTLY TO CONTINUE THE SECURITY NOT TO WORRY ABOUT SUCH THINGS IS WHAT MR CLINTON WILL BE SELLING INDEED THE CLINTON PLAN ITSELF WILL BE CALLED THE AMERICAN HEALTH SECURITY ACT OF 1993 TO DRAMATIZE THE POINT MR CLINTON MAY HOLD UP A SOCALLED HEALTH SECURITY CARD DURING HIS NATIONALLY TELEVISED SPEECH TO CONGRESS UNVEILING HIS PROPOSAL ON SEPT 22 THE DEMOCRATIC NATIONAL COMMITTEE ALREADY HAS PRINTED THOUSANDS OF BUMPER STICKERS WITH THE SLOGAN HEALTH CARE THAT'S ALWAYS THERE FORMER OHIO GOVERNOR RICHARD CELESTE HAS BEEN BROUGHT ON BOARD TO RUN A CAMPAIGN ALONG THAT THEME WHILE THAT CAMPAIGN UNFOLDS THE ADMINISTRATION EXPECTS TO BE NEGOTIATING THE DETAILS ALREADY FOR EXAMPLE THE WHITE HOUSE HAS HINTED IT IS PREPARED TO COMPROMISE OVER ONE OF THE PLAN'S MOST CONTROVERSIAL ELEMENTS THE PROPOSAL TO WRING 238 BILLION OUT OF PROJECTED COSTS IN MEDICARE AND MEDICAID SPENDING BY THE YEAR 2000 CRITICS CALL THOSE ESTIMATES WILDLY UNREALISTIC OR CHARGE THEY CAN BE ACHIEVED ONLY BY SHARPLY CURBING BENEFITS FOR SENIOR CITIZENS AND THE POOR AUTHORS OF THE CLINTON PLAN DEFEND THEIR PROJECTIONS BUT ALSO SAY THEY ARE FLEXIBLE THE ADMINISTRATION EVEN APPEARS TO HAVE SET UP SOME TRADE OFFS BY WHICH THE MEDICARE AND MEDICAID CLAMPDOWN CAN BE EASED FOR INSTANCE THE CLINTON PLAN CALLS FOR USING THE 124 BILLION IN SAVINGS FROM PROJECTED MEDICARE COSTS TO HELP PAY FOR LONGTERM CARE AND MEDICARE DRUG BENEFITS IF CONGRESS WANTS TO EASE THE PRESSURE ON MEDICARE IT COULD CHOOSE SIMPLY TO SHRINK THOSE PLANS FOR LONGTERM CARE AND DRUG COVERAGE THE OVERALL CLINTON APPROACH IS SURE TO BE HIT FROM BOTH THE RIGHT AND THE LEFT ON THE LEFT LIBERAL DEMOCRATS WILL COMPLAIN THAT A FAR SIMPLER AND FAIRER WAY TO ENSURE COVERAGE FOR ALL AMERICANS IS TO ESTABLISH A SOCALLED SINGLEPAYER PROGRAM IN WHICH THE GOVERNMENT PAYS ALL HEALTH BILLS REGARDLESS OF HOW THE SYSTEM IS FINANCED ON THE RIGHT CONSERVATIVES WILL ATTACK THE REQUIREMENT THAT ALL EMPLOYERS BUY HEALTH COVERAGE FOR THEIR EMPLOYEES AND THE ESTABLISHMENT OF NEW QUASIGOVERNMENTAL HEALTH ALLIANCES TO PROVIDE HEALTH COVERAGE BUT IN THE CENTER REPUBLICANS AND DEMOCRATS AREN'T AS FAR APART AS THE EARLY RHETORIC WILL SUGGEST A GROUP OF MODERATE REPUBLICAN SENATORS FOR INSTANCE PLANS TO UNVEIL ITS ALTERNATIVE HEALTH PLAN WEDNESDAY AND IT ACTUALLY WILL BE SIMILAR TO THE PRESIDENT'S APPROACH IN MANY RESPECTS LIKE THE ADMINISTRATION'S PLAN IT WILL INCLUDE ASPECTS OF A MANAGEDCOMPETITION APPROACH IN WHICH THE GOVERNMENT TRIES TO STEER THE HEALTH SYSTEM IN WAYS THAT WILL GENERATE MORE COSTPRODUCING COMPETITION AMONG PROVIDERS AND HEALTH PLANS SIGNIFICANTLY THIS REPUBLICAN ALTERNATIVE WON'T HAVE THE MANDATE THAT EMPLOYERS PAY MUCH OF THE COST OF INSURANCE OR THE GOVERNMENTSET LIDS ON THE COST OF INSURANCE PREMIUMS FOUND IN THE CLINTON PLAN BUT THE REPUBLICAN APPROACH WILL CALL FOR A MANDATE ON INDIVIDUALS WHO WOULD BE REQUIRED TO FIND SOME HEALTH COVERAGE MUCH AS AUTO OWNERS NOW ARE REQUIRED TO BUY AUTO INSURANCE AND OFFER TAX CREDITS TO HELP THE POOR GET COVERAGE AND LIKE THE ADMINISTRATION'S PLAN IT WILL CALL FOR A STANDARD BENEFITS PACKAGE FOR ALL AND HEALTH ALLIANCES TO POOL INDIVIDUAL AND SMALLBUSINESS INSURANCE BUYING POWER THOSE KINDS OF SIMILARITIES ARE WHAT PRESIDENT CLINTON HOPES TO EXPAND IN THE COMING DEBATE THE BASIS FOR AGREEMENT IS THERE MAINTAINS PAUL ELLWOOD COFOUNDER OF THE JACKSON HOLE GROUP THE ORGANIZATION OF HEALTH ANALYSTS THAT CREATED THE MANAGED COMPETITION THEORY I REALLY THINK THAT THE VARIOUS PLANS ARE CLOSE ENOUGH TOGETHER THAT IT'S GOING TO BE POSSIBLE TO NEGOTIATE THE DIFFERENCES 9309130083 930913 CREDIT RATING NOBLE DRILLING CORP HOUSTON STANDARD & POOR'S CORP RAISED ITS RATING ON THIS OFFSHORE OIL DRILLING CONTRACTOR'S PREFERRED STOCK TO SINGLEB FROM SINGLEBMINUS ABOUT 75 MILLION OF PREFERRED STOCK IS OUTSTANDING S&P ALSO ASSIGNED A DOUBLEBMINUS RATING TO 125 MILLION OF NOBLE'S SENIOR NOTES DUE 2003 AND RAISED ITS RATINGS OUTLOOK ON THE COMPANY TO POSITIVE FROM STABLE S&P SAID THE UPGRADE REFLECTS THE EXPECTED POSITIVE IMPACT OF NOBLE'S ACQUISITION OF 11 DRILLING RIGS ITS COMMITMENT TO A CONSERVATIVE FINANCIAL POLICY AND AN IMPROVEMENT IN NOBLE'S MAIN OPERATING AREA 9309130082 930913 BUSINESS BRIEF AMERICAN ELECTRIC POWER SERVICE REGULATORS APPROVE TARIFF FOR TRANSMISSION OF POWER AMERICAN ELECTRIC POWER SERVICE CORP SAID IT RECEIVED FEDERAL REGULATORY APPROVAL TO IMPLEMENT A TARIFF OF ABOUT 252 PER KILOWATT PER MONTH FOR TRANSPORTING POWER TO OTHER UTILITIES ON ITS AEP'S TRANSMISSION SYSTEM THE TARIFF WHICH WAS EFFECTIVE SEPT 7 IS SUBJECT TO RATE HEARINGS TO BEGIN WITHIN A MONTH AND A REFUND IN THE EVENT OF A LOWER RATE THE COLUMBUS OHIO UTILITY HAD REQUESTED A TARIFF OF 280 PER KILOWATT MONTH FOR POWER SUPPLIED ON ITS POWER GRID THROUGH SEVEN EASTERN AND CENTRAL STATES THE NATIONAL ENERGY POLICY ACT PASSED BY THE US CONGRESS LAST YEAR REQUIRES OPEN ACCESS TO TRANSMISSION SYSTEMS THE TARIFF COVERS THE TERMS CONDITIONS AND PRICE OF THE SERVICE 9309130081 930913 BUSINESS BRIEF ENTERGY CORP FERC AIDE CONDITIONALLY APPROVES GULF STATES MERGER ENTERGY CORP SAID A FEDERAL ENERGY REGULATORY COMMISSION ADMINISTRATIVE JUDGE APPROVED THE COMPANY'S PROPOSED MERGER WITH GULF STATES UTILITIES CO THE APPROVAL WAS CONDITIONED UPON NEW ORLEANSBASED ENTERGY'S ADOPTING A CERTAIN FUELCOST TRACKING MECHANISM TO PROTECT ITS PRESENT OPERATING COMPANIES FROM UNEXPECTED INCREASES IN FUEL COSTS AFTER THE MERGER WITH GULF STATES OF BEAUMONT TEXAS ALSO PROFITS FROM POWER SALES UNDER CONTRACT PRIOR TO THE MERGER WILL CONTINUE TO BE DISTRIBUTED TO ENTERGY'S OPERATING COMPANIES AND WILL EXCLUDE GULF STATES AFTER THE MERGER ENTERGY AND GULF STATES SAID THEY SUPPORTED THE CONDITIONS THE OFFICIAL'S RECOMMENDATION GOES BEFORE THE FERC COMMISSIONERS WHO ARE EXPECTED TO RULE ON THE MERGER THIS FALL IN JUNE 1992 ENTERGY PROPOSED TO BUY GULF STATES FOR 23 BILLION TEXAS AND LOUISIANA REGULATORS HAVE APPROVED THE MERGER THE SECURITIES AND EXCHANGE COMMISSION AND NUCLEAR REGULATORY COMMISSION MUST STILL APPROVE 9309130080 930913 BUSINESS BRIEF FIELDCREST CANNON INC DIRECTORS APPROVE PROGRAM TO OFFER EARLY RETIREMENT FIELDCREST CANNON INC SAID DIRECTORS APPROVED A VOLUNTARY EARLY RETIREMENT PROGRAM OFFERED TO ABOUT 400 OF ITS MORE THAN 2200 SALARIED EMPLOYEES THE OFFER IS BEING MADE TO EMPLOYEES AT LEAST 55 YEARS OLD BY NOV 1 WHO HAVE A MINIMUM 20 YEARS OF SERVICE EMPLOYEES WHO PARTICIPATE WILL HAVE THREE YEARS OF SERVICE AND THREE YEARS OF AGE ADDED TO THEIR RECORD FOR CALCULATING RETIREMENT BENEFITS AND WILL RECEIVE A SUPPLEMENTAL RETIREMENT PAYMENT FIELDCREST BASED IN EDEN NC MANUFACTURES AND MARKETS BED AND BATH PRODUCTS UNDER THE FIELDCREST ST MARYS CANNON ROYAL FAMILY CANNON MONTICELLO AND PRIVATEBRAND LABELS 9309130079 930913 THE CLINTON HEALTH PLAN MAJOR EMPLOYERS FEAR NEW RESTRAINTS SMALL BUSINESS SEES BURDENS GETTING LIGHTER BY UDAYAN GUPTA AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL FOR MANY SMALL BUSINESSES SADDLED WITH ESCALATING HEALTHCARE COSTS PRESIDENT CLINTON'S HEALTHCARE PACKAGE COMES AS AN UNEXPECTED WINDFALL BUSINESS OWNERS EXPRESS PREDICTABLE SKEPTICISM ABOUT HOW THE PROPOSALS WOULD BE FINANCED AND WORRY ABOUT THE BUREAUCRATIC CONTROLS THAT WOULD ENCUMBER THEM WITH YET MORE RED TAPE BUT MANY BUSINESS OWNERS SAY THE PROVISIONS OF THE PLAN MIGHT ACTUALLY OFFER THEM SIGNIFICANT RELIEF FROM THE COSTS THEY ARE PAYING NOW AND MANY CONCEDE THAT AN OVERHAUL IS OVERDUE WE'RE ALREADY PAYING TOP DOLLAR FOR OUR HEALTH COVERAGE SAYS ROGER LONGMAN MANAGING PARTNER OF WINDHOVER INFORMATION INC A SOUTH NORWALK CONN HEALTHCARE INFORMATION PUBLISHER WITH 15 EMPLOYEES WINDHOVER LACKS THE RESOURCES TO COMMAND GENEROUS TERMS WITH INSURERS BUYING THROUGH A REGIONALHEALTH ALLIANCE OF THE SORT OUTLINED IN THE PROPOSAL HAS TO REDUCE OUR COSTS MR LONGMAN SAYS LIKEWISE JAY EDWARD JONES PRESIDENT OF TECHNICAL LAND CONSULTANTS CORP AN ENGINEERING AND SURVEY FIRM IN YOUNGSTOWN OHIO ALSO WITH 15 EMPLOYEES CRUNCHES THE NUMBERS IN MR CLINTON'S PLAN AND SAYS I'LL TAKE IT MR JONES VOICES DISTRUST FOR MANY EXISTING GOVERNMENT SOCIALWELFARE PROGRAMS YOU DON'T GET ANYTHING FOR FREE HE SAYS BUT HE COMPARES THE 429 HE PAYS EACH MONTH FOR AN EMPLOYEE'S FAMILY COVERAGE WITH AS LITTLE AS 420 A YEAR UNDER THE CLINTON PACKAGE CONTRIBUTIONS OF COMPANIES WITH 50 OR FEWER EMPLOYEES WOULD BE CAPPED FROM A LOW OF JUST 35 OF PAYROLL IF WAGES AVERAGE LESS THAN 12000 A YEAR NEW YORK ENTREPRENEUR GREGORY BAXTER POINTS OUT THAT UNDER CURRENT CONDITIONS SURGES IN HEALTHCARE COSTS CAN COME OUT OF THE BLUE PLAYING HAVOC WITH PROFITS AND PLANNING HE SHOULD KNOW THE COST OF HEALTHCARE COVERAGE AT HIS STIRLING WINDSOR CAPITAL CORP A NEW YORK INVESTMENT BOUTIQUE ROSE 70 ON AUG 1 BECAUSE OF A NEW STATE LAW THAT MANDATES EXPANDED EMPLOYEE COVERAGE HE SAYS INDEED EVEN AS BIG BUSINESSES HAVE BEEN MAKING STRIDES TOWARD CONTROLLING HEALTHCARE COSTS THROUGH COLLECTIVEPURCHASING AGREEMENTS AND OTHER INITIATIVES MOST SMALL BUSINESSES HAVE BEEN HANDICAPPED BY THEIR SIZE NOW THEIR SIZE GIVES THEM AN EDGE RATHER A DISADVANTAGE OVER THE GIANTS IN THE DRAFT VERSION OF THE CLINTON PLAN THE SMALLEST OF THEM WILL GET SUBSIDIES TO HELP PAY FOR THE TRUE COST OF COVERAGE MOREOVER THEY WILL BE HANDED A MANDATED MECHANISM FOR BANDING TOGETHER IN LARGE GROUPS WITH MORE NEGOTIATING CLOUT THAN EVER ANNEMARIE CORNER HEAD OF BIOSYN INC A PHILADELPHIA BIOMEDICAL RESEARCH AND DEVELOPMENT FIRM ALSO LIKES THE LOOK OF THE CLINTON PLAN IT PROJECTS AN AVERAGE PREMIUM FOR A STANDARD BENEFITS PACKAGE OF 1800 A YEAR FOR INDIVIDUALS COMPARED WITH THE 2400 HER COMPANY NOW PAYS FOR THE MOST BASIC POLICY THAT SHE CAN FIND ANYTHING THAT WOULD GUARANTEE BUYING INTO A POOL AT REASONABLE RATES WOULD BE BENEFICIAL MS CORNER SAYS OF COURSE NOT EVERY BUSINESS OWNER IS HAPPY WITH MR CLINTON'S INITIATIVE KEITH KLINGENBERG PRESIDENT OF TLC GROUP INC A TRANSPORTATION AND WAREHOUSING COMPANY IN ZEELAND MICH INSISTS HIS COMPANY CAN MANAGE HEALTH CARE BETTER THAN ANY SORT OF MANDATED GOVERNMENT PROGRAM THE FEDERAL PLAN HE NOTES FORESEES AN AVERAGE PREMIUM OF 4200 A YEAR FOR FAMILIES MY COSTS ARE NOW JUST A LITTLE OVER 2000 FOR FAMILY COVERAGE HE SAYS AND MY PLAN IS MORE INCLUSIVE TLC GROUP WOULDN'T BENEFIT FROM A SMALLBUSINESS CEILING ON PREMIUMS BECAUSE HIS WORKERS NUMBER MORE THAN 300 AND MOST OF THEM INCLUDING TRUCK DRIVERS EARN MORE THAN 40000 A YEAR MR KLINGENBERG ESTIMATES THAT THE CLINTON PROPOSALS IF ENACTED AS THEY NOW STAND WOULD DOUBLE HIS COMPANY'S HEALTHINSURANCE COSTS TO 1 MILLION SLASHING PROFIT MARGIN THIS ISN'T EXPENSE CONTROL IT'S JUST ANOTHER SHIFT OF GOVERNMENT RESPONSIBILITY ONTO THE BACKS OF SMALL BUSINESS HE SAYS MOREOVER A HUGE NUMBER OF SMALL BUSINESSES WOULD BE ADVERSELY AFFECTED BECAUSE THEY DON'T CURRENTLY OFFER ANY HEALTHCARE BENEFITS AT ALL MANDATED COVERAGE WOULD ADD AN EXPENSE THAT THEY CAN ILL AFFORD AND SOME SMALLBUSINESS ADVOCATES CLAIM MANY OF THEM WOULD HAVE TO SHUT DOWN THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH HAS LONG OPPOSED ANY REQUIREMENT TO FORCE EMPLOYERS TO PROVIDE COVERAGE ESTIMATES THAT ONLY ABOUT 25 OF COMPANIES WITH FIVE OR FEWER EMPLOYEES NOW PROVIDE HEALTH INSURANCE IN SPITE OF THE PROMISE OF BREAKS FOR THE SMALLEST EMPLOYERS JOHN MOTLEY THE NFIB'S CHIEF LOBBYIST WONDERS HOW LONGLASTING THEY WOULD BE IF THERE ARE SMALL BUSINESS SUBSIDIES HOW LONG WILL THEY BE IN PLACE HE ASKS IF THERE'S A CAP ON A SMALL COMPANY'S HEALTHCARE PREMIUM IS IT A ONEYEAR OR A THREEYEAR CAP THE PLAN IS SHAPING UP TO BE SO HEAVY SO EXPENSIVE AND SO RADICAL IT'LL HAVE A VERY DIFFICULT TIME PASSING CONGRESS HE ADDS I PREDICT THEY'LL HAVE TO FALL BACK ON A LESS RADICAL PLAN THE BIGGEST BENEFICIARIES COULD WELL BE SMALL FASTGROWING BUSINESSES THAT NOW HAVE TO PAY DEARLY FOR HEALTHCARE COVERAGE AS THEY COMPETE FOR HIGHLEVEL TALENT A COMPREHENSIVE HEALTHCARE PACKAGE IS A COMPETITIVE TOOL SAYS WILLIAM MUNIER CHIEF EXECUTIVE OFFICER OF QSM INC A BOSTON STARTUP THAT MARKETS CLINICAL COSTANDPERFORMANCE MEASUREMENT SYSTEMS IN ATTEMPTING TO PROVIDE SUCH COVERAGE QSM AND OTHERS FIND THEMSELVES PLACED IN HIGHRISK GROUPS PAYING PREMIUMS MUCH HIGHER THAN BIG COMPANIES DO MOREOVER A SINGLE ACCIDENT OR CATASTROPHIC ILLNESS SOMETIMES CAN TRIGGER A SHARP PREMIUM INCREASE OR EVEN LEAD TO A DENIAL OF FULL COVERAGE UNDER THE PROPOSED PLAN QSM WHICH HAS ABOUT 15 EMPLOYEES SHOULD COME OUT AHEAD SAYS MR MUNIER EVEN THOUGH THE EXACT DETAILS OF HOW THE GOVERNMENT WILL MANAGE THIS PROGRAM AND WHAT IT MIGHT PAY ARE STILL UNCLEAR THE PROPOSED PLAN CERTAINLY LEVELS THE PLAYING FIELD BETWEEN LARGE AND SMALL COMPANIES HE SAYS FURTHERMORE THE PLAN'S MANDATE TO ALL EMPLOYERS THAT THEY PROVIDE AT LEAST 80 OF TOTAL THE COST OF COVERAGE BRINGS A CONSISTENCY AND EQUITY TO WORKERS AT SMALL COMPANIES THE ENTREPRENEUR ADDS SMALLBUSINESS ADVOCATES SAY THEY ARE CROSSING THEIR FINGERS AND HOPING THAT CONGRESS CAN COME UP WITH A REASONABLE PLAN BUT THEY HAVE THEIR DOUBTS I WOULDN'T REJECT THIS CLINTON PLAN OUT OF HAND SAYS DONALD JONOVIC PRESIDENT OF FAMILY BUSINESS MANAGEMENT SERVICES A CLEVELAND CONSULTING FIRM BUT HE ADDS EVEN WHERE THE GOVERNMENT IS HELPING YOU KNOW WHERE THE PAPERWORK IS GOING TO FALL WE ALSO KNOW THAT ONCE THESE THINGS GET STARTED THE HIDDEN COSTS START TO SKYROCKET ROBERT WIELER A DALLAS BUSINESS CONSULTANT WHO DOES WORK FOR THE NATIONAL ASSOCIATION FOR THE SELFEMPLOYED SAYS MR CLINTON IS ON THE RIGHT TRACK BY ORGANIZING BUSINESSES INTO REGIONAL GROUPS BUT HE TOO OPPOSES MANDATORY EMPLOYER PARTICIPATION WORRYING THAT THE EXTRA COST WILL DESTROY MARGINAL BUSINESSES AND COST JOBS HE PREDICTS IT WILL TAKE THE COUNTRY AT LEAST FIVE YEARS TO ADJUST TO A MAJOR HEALTHCARE OVERHAUL THE QUESTION IS HE SAYS CAN A SMALL BUSINESS MAKE IT THROUGH THAT TRANSITION PERIOD SEE RELATED ARTICLE COMPANIES FRET OVER CONTROLS INCREASED COSTS WSJ SEPT 13 1993 BEING SMALL PAYS CONTRIBUTIONS FOR EMPLOYERS WITH 50 OR FEWER EMPLOYEES ARE CAPPED AT A LOWER LEVEL BASED ON THE AVERAGE WAGE OF THE FIRM CAP ON EMPLOYER AVERAGE WAGE CONTRIBUTIONS PER FULLTIME AS PERCENTAGE OF EQUIVALENT WORKER TOTAL PAYROLL LESS THAN 12000 35 12000 TO 15000 38 15000 TO 18000 44 18000 TO 21000 55 21000 TO 24000 65 GREATER THAN 24000 79 NOTE EMPLOYERS WITH MORE THAN 50 EMPLOYERS PAY NO MORE THAN 79 OF PAYROLL SOURCE DRAFT OF ADMINISTRATION HEALTH PLAN 9309130078 930913 INTERNATIONAL JAPAN STEELMAKERS LOWER PROJECTIONS FOR FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO FIVE MAJOR JAPANESE STEELMAKERS LOWERED PROJECTIONS FOR PARENTCOMPANY EARNINGS FOR THE FISCAL FIRST HALF AND SAID THEY PLAN TO SUSPEND PAYMENTS OF THEIR INTERIM DIVIDENDS THE REVISIONS WERE IN LINE WITH THE MOVE BY JAPAN'S BIGGEST STEELMAKER NIPPON STEEL CORP WHICH LAST TUESDAY TRIPLED ITS FORECAST FOR PRETAX LOSSES FOR THE SIX MONTHS ENDING SEPT 30 TO 150 BILLION YEN 142 MILLION NOTING THE DOWNTURN IN DEMAND FROM CAR MAKERS AND THE FACT THAT THE SLOWDOWN SHOWS NO SIGNS OF BOTTOMING OUT AT OTHER MANUFACTURERS AND CONSTRUCTION COMPANIES THE FIVE NEXTLARGEST STEELMAKERS AFTER NIPPON STEEL ALSO SAID JAPAN'S RECESSION AND THE APPRECIATION OF THE YEN HAD WIPED OUT THEIR PROFITS KAWASAKI STEEL CORP SUMITOMO METAL INDUSTRIES LTD AND KOBE STEEL LTD MORE THAN DOUBLED THEIR FORECAST FOR PRETAX LOSSES TO 8 BILLION YEN 9 BILLION YEN AND 9 BILLION YEN RESPECTIVELY NKK CORP MAINTAINED ITS PREVIOUS FORECAST OF A 15 BILLION YEN PRETAX LOSS BUT LOWERED ITS PROJECTION FOR SALES NISSHIN STEEL CO LOWERED ITS PRETAX FORECAST BY 60 TO 2 BILLION YEN ALL OF THE STEELMAKERS HAVE ENGAGED IN DRASTIC COSTCUTTING STRATEGIES INCLUDING PARING THEIR WORK FORCES AND SLASHING CAPITAL INVESTMENT IN AN ATTEMPT TO REGAIN PROFITABILITY 9309130077 930913 MANAGER'S JOURNAL SALESMEN SHOULDN'T SELL BUYERS SHOULDN'T BUY BY CLIFTON J REICHARD IF PARADIGM SHIFTS AND REENGINEERING INTEREST YOU I'VE GOT A COUPLE OF BEAUTS FOR YOU TO CHEW ON SALESMEN SHOULDN'T SELL AND BUYERS SHOULDN'T BUY I SAY THIS AFTER 40 YEARS OF EXPERIENCE AT EVERY LEVEL OF SALES MANAGEMENT CALLING ON EVERY LEVEL OF PURCHASING MANAGEMENT MY FIRM IS A TRULY SUPERB FORTUNE 200 COMPANY 187TH TO BE EXACT I LOVE AND RESPECT THE COMPANY AND ITS PEOPLE BUT WHEN I TELL PROSPECTIVE BUYERS WHAT I KNOW TO BE HONEST AND ACCURATE ABOUT MY COMPANY'S STELLAR RECORD THEY DON'T BELIEVE ME THEY IMMEDIATELY SUSPECT THERE ARE A LOT OF SKELETONS IN OUR CLOSET WHEN I TRY TO DISSUADE THEM OF THIS IT SEEMS TO ADD TO THEIR DISBELIEF AFTER ALL EVERYONE KNOWS YOU CAN'T BELIEVE ANYTHING A SALESMAN TELLS YOU IF I AM SUCCESSFUL ENOUGH TO AROUSE ENOUGH INTEREST IN A PURCHASING AGENT TO CAUSE HIM TO THINK OF BUYING FROM US I FIND HE HAS A VP OF PURCHASING WHO THINKS OTHERWISE AND IF OVER TIME I AM SUCCESSFUL IN GETTING THE VP OF PURCHASING TO AGREE TO TRY US I FIND THERE IS A VP OF MANUFACTURING WHO SAYS HE HAS PROFIT RESPONSIBILITY FOR THE PLANTS AND NONE OF OUR PRODUCTS ARE GOING INTO HIS PLANTS UNTIL HE SAYS SO THEN I FIND OUT THE VP OF R&D THINKS HE IS THE PROTECTOR OF THE FAMILY JEWELS AND NONE OF OUR PRODUCTS WILL BE ACCEPTED UNLESS AND UNTIL THEY MEET HIS SPECIFICATIONS SO HERE WE ARE SENDING OUT ONE LONELY SALESMAN NO ONE IS GOING TO BELIEVE AND EXPECTING HIM TO PERSUADE AN ENTIRE ORGANIZATION TO BUY FROM US THE HUGE DIFFICULTY OF THE TASK CRIES OUT FOR A RETHINKING OF THE PROCESS LET'S START BY TURNING THE PROCESS UPSIDE DOWN DON'T SELL OUT THERE SELL IN HERE DON'T LET THE SALESMAN SELL CREATE CONDITIONS WHERE THE COMPANY CAN SELL ITSELF WE TELL OUR PROSPECTS THAT IF THEY GIVE US 24 HOURS WE'LL INTRODUCE THEM TO OUR PEOPLE MAKING THE PRODUCTS THEY WILL BE BUYING ALL THE WAY UP TO THE CEO AND HIS MANAGEMENT TEAM THEY CAN JUDGE FOR THEMSELVES IF WE ARE THE KIND OF PEOPLE AND COMPANY THEY WOULD LIKE TO BUY FROM ALL OF US TOGETHER CAN SELL BETTER THAN ANY ONE OF US CAN INDIVIDUALLY THE ENTIRE ORGANIZATION FROM THE BOTTOM UP BEING THEMSELVES AND DEMONSTRATING THEIR CAPABILITIES HAS A COMBINED CREDIBILITY THAT NO ONE SALESPERSON CAN EVER ADEQUATELY REPRESENT WE CAN CONVEY MORE IN ONE TRIP TO OUR PLANTS AND OFFICES THAN ONE SALESPERSON CAN CONVEY IN A LIFETIME OF TRIPS CALLING ON PROSPECTS OF COURSE IF YOU HAVE PLANTS YOU DON'T WANT CUSTOMERS TO SEE AND IF YOU HAVE PEOPLE YOU DON'T WANT CUSTOMERS TO MEET THEN YOU ARE THE COMPETITION WE ARE LOOKING FOR WE WILL FLY THE PROSPECTIVE CUSTOMER AT OUR EXPENSE TO SEE YOU SO WE CAN BE ABSOLUTELY SURE THE PROPER COMPARISON AND ASSESSMENT ARE MADE LET ME SWITCH GEARS AND TRY ON THE OTHER PARADIGM SHIFT BUYERS SHOULDN'T BUY I KNOW IT PROBABLY ISN'T TRUE OF YOUR COMPANY BUT THERE ARE A LOT OF PURCHASING DEPARTMENTS OUT THERE THAT BUY MOSTLY ON PRICE THEY CONSIDER PRICE TO BE THE ALLIMPORTANT FACTOR AND THEY ASK FOR QUOTES BOTH BUYERS AND SELLERS SHOULD TAKE THE OFFER TO QUOTE VERY SERIOUSLY THE OFFER TO QUOTE IS AN OFFER TO DO BUSINESS TOGETHERTANTAMOUNT TO GETTING IN BED TOGETHER UNDER NO CIRCUMSTANCES SHOULD THE PARTIES GET IN BED FOR A PRICE BECAUSE THAT WOULD PROSTITUTE THE RELATIONSHIP FROM THE START AS A SUPPLIER WE WANT TO BE THE ONE THEY TAKE HOME TO MOTHER WE HAVE NO INTEREST IN BEING THE ONE NIGHT STAND THAT ISN'T RESPECTED IN THE MORNING MARRIAGES FOR MONEY DON'T LAST IN OUR SOCIAL LIVES AND MARRIAGES FOR PRICE DON'T LAST IN OUR BUSINESS LIVES EITHER THERE IS NO EMOTIONAL TIE AND THERE IS NO MORAL BASIS FOR THE RELATIONSHIP TO ENDURE AS IMPORTANT AS PRICE IS THE DISCUSSION OF IT SHOULD BE KEPT ON A HIGH PLANE AND IN ITS PROPER SEQUENCE IN THE SALES PROCESS CUTTING PRICES TO GET BUSINESS IS A TACTIC THAT SHOULD BE REJECTED BY BOTH BUYER AND SELLER ON MORAL GROUNDS IS PRICE IMPORTANT YOU BET IT IS BUT IT SHOULD NOT BE THE DRIVING FORCE TO MAKE THE SALE MANY BUYERS EQUATE LOW PRICES WITH BECOMING A LOWCOST PRODUCER BUT EXPERIENCE SHOWS THAT LOW COSTS AND LOW PRICES CAN BE POLES APART THE FIRST LESSON WE LEARN IN TOTAL QUALITY MANAGEMENT IS THAT IF YOU HAVE A PURCHASING DEPARTMENT THAT INSISTS ON BUYING FROM THE LOWEST BIDDER THERE IS NO WAY THE QUALITY PROCESS CAN WORK IT TAKES NO BRAINS TO BUY OR SELL WITH THE LOWEST PRICES BUYING CHEAP AND SELLING CHEAP PRODUCES CHEAP AND AMERICAN BUSINESS CAN NO LONGER COMPETE WORLDWIDE WITH THIS WORNOUT FORMULA THE BUYING THRUST SHOULD BE TO SUPPORT MANUFACTURING'S QUEST TO BE THE QUALITY LOWCOST PRODUCER AND PURCHASING SHOULD BE MOTIVATED BY THAT GOAL NOT BY HOW MUCH IS SAVED BY BEATING SUPPLIERS TO DEATH THEREFORE BUYERS SHOULDN'T BUY THEY SHOULD LOOK FOR SUPPLIERS WHO WOULD MAKE THE BEST PARTNERS IN PURSUING THE MANUFACTURING QUEST AND THE BEST WAY TO MAKE THAT DETERMINATION IS TO GO VISIT THE RANGE OF SUPPLIERS AND SEE WHICH ONE IS BEST SUITED TO HELP THE BUYER BECOME A WORLDCLASS PRODUCER THIS UPSIDE DOWN THESIS OF SELLING IN HERE NOT OUT THERE OF SELLING GROUPTOGROUP NOT ONEONONE IS THE WAY COMPANIES SHOULD BUY AS WELL AND IF IN THE PROCESS WE DEVELOP TRUE PARTNERSHIPS DEDICATED TO ELIMINATING WASTE FROM BOTH OPERATIONS THEN PRICE WILL HAVE BEEN PLACED IN ITS PROPER PERSPECTIVE AND THROUGH TEAM EFFORT BETWEEN THE PARTNERS WE CAN GET ON WITH COMPETING AGAINST THE REST OF THE WORLD MR REICHARD IS DIRECTOR OF BUSINESS DEVELOPMENT FOR BALL CORP A GLASS AND METAL PACKAGING COMPANY 9309130076 930913 NOTABLE & QUOTABLE IN THE TIMES OF LONDON OF JULY 9 COLUMNIST BERNARD LEVIN REPORTS ON A BRITISH GOVERNMENT PAMPHLET ON HOW TO GET DOGS TO STOP BARKING THE PAMPHLET LIES BEFORE ME ITS OPENING WORDS ARE BARKING COMES NATURALLY TO DOGS WELL FEW OF US WOULD THINK THEY HAD TO BE TAUGHT THE ART THE DOCUMENT CONTINUES WITH AN EVEN MORE STRIKING REVELATION SAYING THE CONSTANT BARKING OR WHINING OF A DOG CAN BE DISTURBING OR ANNOYING FOR THE NEIGHBORS THEN AGAIN WE LEARN FROM THE MINISTRY'S INDEPTH RESEARCH THE ASTONISHING NEWS THAT THERE ARE MANY REASONS WHY YOUR DOG MAY BARK STARTLING INSIGHTS NOW BEGIN TO FLOW IN THEIR DOZENS FOR INSTANCE SOME DOGS WILL BARK BECAUSE THEY WANT TO JOIN IN WHAT'S GOING ON OUTSIDE SO IT GOES ON WE ARE TOLD TO CHECK THAT THE ROOM IS NOT TOO HOT OR TOO COLD TO TRY NOT TO LEAVE YOUR DOG FOR LONG PERIODS TO THINK CAREFULLY ABOUT WHERE YOU PUT HIS KENNEL MOREOVER TRAINING IS IMPORTANT SO THAT YOUR DOG DOES NOT BARK AT ALL TIMES SOME DOGS WILL SETTLE ONLY IF THEY CAN HEAR A HUMAN VOICE LEAVING A RADIO ON AT LOW VOLUME MIGHT HELP YES THE MINISTRY DID ADD BUT MAKE SURE THE RADIO IS NOT TOO LOUD YOU DON'T WANT TO HAVE COMPLAINTS ABOUT THAT YES THE MINISTRY DID ADD THE EXCLAMATION MARK WAS I FANTASISING ABOUT THE GOVERNMENT'S INTENTION OF REDUCING US ALL TO CHILDREN WAS I PROPHESYING WAS I EVEN EXAGGERATING 9309130075 930913 BUSINESS BRIEF MITSUI TOTATSU CHEMICALS INC FIRM EXPECTS TO BREAK EVEN FOR YEAR AS DEMAND SLOWS MITSUI TOTATSU CHEMICALS INC REVISED DOWNWARD ITS INITIAL FORECAST FOR PARENTONLY SALES AND EARNINGS FOR THE FISCAL YEAR SAYING IT WOULD BREAK EVEN ON BOTH PRETAX PROFIT AND NET PROFIT FOR THE YEAR ENDING MARCH 31 THE TOKYO CHEMICAL MAKER HAD PRETAX PROFIT OF 631 BILLION YEN 60 MILLION AND NET OF 302 BILLION YEN A YEAR EARLIER THE COMPANY SAID THAT AS A RESULT OF THE SLUGGISHNESS OF FINAL DEMAND PRICES FOR SUCH CHEMICAL PRODUCTS AS SYNTHETIC RESINS CONTINUED TO SOFTEN IT ALSO CITED THE DEBILITATING EFFECTS OF THE YEN'S RISE WHICH IS DEEPENING THE SLUMP AMONG AUTOMOBILE AND HOME APPLIANCE MAKERS TO WHICH THE CONCERN PROVIDES CHEMICALS 9309130074 930913 BUSINESS BRIEF SOGO CO DEPARTMENT STORE OPERATOR REVISES FORECASTS DOWNWARD JAPAN'S SOGO CO A MAJOR DEPARTMENT STORE OPERATOR BASED IN OSAKA ANNOUNCED FRIDAY BROAD DOWNWARD REVISIONS TO ITS UNCONSOLIDATED EARNINGS FORECASTS FOR THE FISCAL FIRST HALF AND THE FULL FISCAL YEAR THE LACK OF STRONG CONSUMER DEMAND THE SLUGGISHNESS OF THE JAPANESE ECONOMY AND THE UNSEASONABLE WEATHER WERE ALL BEHIND THE EARNINGS REVISIONS THE COMPANY SAID SOGO'S FISCAL FIRST HALF HAS SEEN AN UNUSUALLY HEAVY AMOUNT OF RAINFALL WHICH TENDS TO KEEP CONSUMERS AT HOME RATHER THAN OUT SHOPPING FURTHERMORE THE COOL SUMMER CONTRIBUTED TO SLACK SALES OF SUMMERRELATED GOODS SOGO SAID THAT DESPITE EFFORTS TO DRUM UP SALES AND CUT COSTS IT FORESAW DIFFICULTY IN MEETING THE ORIGINAL FORECASTS THE DOWNWARD REVISIONS COME AT A TIME WHEN MOST JAPANESE DEPARTMENT STORES ARE LOWERING THEIR EARNINGS EXPECTATIONS FOR BOTH THE FISCAL FIRST HALF AND THE FULL FISCAL YEAR 9309130073 930913 BUSINESS BRIEF WHITMAN CORP FIRM TO PAY 195 MILLION TO SETTLE SUIT BY MIDDLEBY WHITMAN CORP SAID IT AGREED TO PAY 195 MILLION TO MIDDLEBY CORP TO SETTLE A LAWSUIT THE BREACH OF CONTRACT SUIT AROSE AFTER WHITMAN'S HUSSMAN CORP UNIT SOLD A FOOD SERVICE EQUIPMENT BUSINESS TO MIDDLEBY IN 1989 FOR ABOUT 65 MILLION IN THE SUIT MIDDLEBY CLAIMED THE WHITMAN UNIT MISREPRESENTED THE PROFITABILITY OF THE BUSINESS LAST YEAR A CHICAGO FEDERAL JURY AWARDED MIDDLEBY 27 MILLION BUT A JUDGE ORDERED A SECOND TRIAL WHITMAN ROLLING MEADOWS ILL SAID THE SETTLEMENT WON'T RESULT IN A CHARGE AGAINST EARNINGS THE COMPANY SAID IT CREATED A RESERVE DURING THE 1992 THIRD QUARTER IN ANTICIPATION OF THE LITIGATION A SPOKESMAN FOR MIDDLEBY SAID THE CHICAGO MANUFACTURER OF KITCHEN EQUIPMENT WILL USE THE SETTLEMENT TO REDUCE DEBT AND PAY LITIGATION EXPENSES 9309130071 930913 ABREAST OF THE MARKET STOCKS BONDS MAY DECOUPLE IF ECONOMY KEEPS LOOKING WEAK BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE HAPPY MARRIAGE BETWEEN THE STOCK AND BOND MARKETS MAY BE UNRAVELING FOR NEARLY THREE YEARS FALLING INTEREST RATES HAVE HELPED PROPEL STOCK PRICES HIGHER EARLY ON DECLINING SHORTTERM RATES SPURRED INVESTORS TO BAIL OUT OF LOWYIELDING CERTIFICATES OF DEPOSIT AND SEEK HIGHER RETURNS IN THE STOCK MARKET AND LAST MONTH PLUNGING LONGTERM INTEREST RATES HELPED DRIVE STOCK PRICES TO RECORD LEVELS BUT ANALYSTS SAY THE LATEST STUNNING PLUNGE IN LONGTERM RATES RAISES SOME WARNING FLAGS THAT BODE ILL FOR STOCK PRICES THEY ARGUE THAT A NEW ENVIRONMENT IS EMERGING IN WHICH STOCK PRICES WILL NO LONGER SHOOT HIGHER EVERY TIME INTEREST RATES SINK LOWER THE DIVERGENCE IN THE PERFORMANCE OF STOCK AND BOND PRICES CAME SHARPLY INTO FOCUS IN THE PAST TWO WEEKS WHEN LONGTERM INTEREST RATES BROKE BELOW THE 6 LEVEL IN A BLISTERING RALLY BEFORE THE LABOR DAY WEEKEND STOCK PRICES EDGED JUST SLIGHTLY HIGHER THEN EVEN AS THE BOND RALLY CONTINUED SIZZLING EARLY LAST WEEK STOCKS TOOK A DRUBBING ALTHOUGH STOCK AND BOND PRICES ROSE FRIDAY THEIR DIVERGENCE IS LIKELY TO CONTINUE THERE COMES A TIME WHEN LOWER LONGTERM INTEREST RATES START TO MATTER LESS TO STOCKS BECAUSE THEY START TO SIGNAL PROBLEMS WITH THE ECONOMY SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP WE'VE PASSED THE POINT WHERE INVESTORS FOCUS ON RATES AND MOVED TO THE POINT WHERE THEY START TO ASK WHAT WILL HAPPEN TO EARNINGS IN RECENT WEEKS INVESTORS HAVE BEEN HIT BY ROUND AFTER ROUND OF DISAPPOINTING ECONOMIC NEWS WHILE THE POOR DATA SIGNAL THAT INFLATION WILL REMAIN SUBDUED AN IMPORTANT FACTOR IN POWERING THE BOND MARKET RALLY THEY LEAVE STOCK INVESTORS TROUBLED ABOUT FUTURE ECONOMIC GROWTH MR JOHNSON SAYS CONSUMER AND BUSINESS SENTIMENT IS SO POOR THAT THE SHARP DROP IN RATES IS FAILING TO STIMULATE ECONOMIC ACTIVITY HE NOTES THAT INDIVIDUALS AND CORPORATIONS ARE STILL REDUCING DEBT RATHER THAN TAKING ON NEW LOANS TO SPEND OR TO EXPAND BUSINESSES LOWER RATES ARE NOT GOING TO LEAD TO AN INCREASE IN BORROWING TO FINANCE SPENDING AND INVESTMENT MR JOHNSON SAYS THERE JUST ISN'T ENOUGH CONFIDENCE FOR CORPORATIONS AND INDIVIDUALS TO LOOSEN UP THE PURSE STRINGS MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK NOTES THAT SINCE THE CLINTON ADMINISTRATION'S ECONOMIC PACKAGE EKED THROUGH CONGRESS EARLY LAST MONTH THE STOCK MARKET HAS FAILED TO KEEP PACE WITH THE BOND MARKET HE SAYS THAT RATHER THAN STIMULATING ECONOMIC ACTIVITY FALLING RATES ARE MERELY REFLECTING THE SLUGGISH ENVIRONMENT BOND YIELDS ARE COMING DOWN BY A MUCH LARGER PERCENTAGE THAN STOCK PRICES ARE GOING UP MR LEVY SAYS THAT'S CONSISTENT WITH THE MARKET PERCEPTION THAT HIGHER TAXES WILL HURT ECONOMIC ACTIVITY BUT WITH FIXEDINCOME INVESTMENTS PAYING LOWER AND LOWER RETURNS AS RATES FALL STOCKS WILL STILL LIKELY BENEFIT AS INVESTORS TAKE ON HIGHER RISK IN PURSUIT OF HIGHER RETURNS IN ADDITION ANALYSTS SAY THAT INVESTORS ARE MORE LIKELY TO REINVEST FUNDS PULLED FROM LOWER YIELDING INSTRUMENTS RATHER THAN SPEND THE MONEY MR LEVY EXPECTS STOCK PRICES TO CLIMB HIGHER BUT STILL AT A SLOWER RATE THAN BONDS THE INCREASED LIQUIDITY MERELY SLOSHES AROUND AMONG FINANCIAL ASSETS AND BIDS UP THEIR PRICES HE SAYS THAT WILL CONTINUE UNTIL THE GROWTH RATE OF LIQUIDITY SLOWS OR UNTIL SPENDING ACCELERATES IF LOW INTEREST RATES CAN NO LONGER PROVIDE THE PUNCH TO DRIVE STOCK PRICES HIGHER THEN CORPORATE EARNINGS MUST RISE ENOUGH TO KEEP THE STOCK MARKET AFLOAT BUT SOME ANALYSTS WORRY THAT AMID AN ECONOMY MARKED BY SLOW GROWTH AND LOW INFLATION EARNINGS AREN'T LIKELY TO GIVE THE NEEDED PUSH DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS BELIEVES THE PERFORMANCES OF THE STOCK AND BOND MARKETS HAVE DIVERGED SINCE PRESIDENT CLINTON FIRST ANNOUNCED HIS TAX PLANS IN A MAJOR ADDRESS IN FEBRUARY INDEED BOND PRICES SURGED THE FOLLOWING DAY AND THE DOW JONES INDUSTRIAL AVERAGE SLID MR SHULMAN ARGUES THAT THE TAX PROGRAM IN AN ENVIRONMENT OF SUBDUED INFLATION WILL CONTRIBUTE TO SUBSTANTIALLY LOWER EARNINGS HE PREDICTS ANNUAL PROFIT INCREASES OF ABOUT 4 RATHER THAN THE 6 TO 8 ESTIMATES OF MANY ANALYSTS STOCKS HAVE SEPARATED FROM BONDS BECAUSE CORPORATE EARNINGS ARE GOING TO BE A LOT LOWER HE SAYS A LOWER PROFIT OUTLOOK SUGGESTS THAT STOCK PRICES ARE OVERVALUED AND THE MARKET IS HEADED FOR A POSSIBLE DOWNTURN MR SHULMAN SAYS THE MARKET COULD STAY OVERVALUED FOR A LONG TIME HE NOTES BUT WE'RE AT A LEVEL WHERE ACCIDENTS CAN HAPPEN SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS CONCEDES THAT RISKS CERTAINLY EXIST IN THE MARKET BUT HE STILL EXPECTS LOWER RATES TO SUSTAIN FURTHER GAINS IN STOCK PRICES MR SOHN STUDIED THE RELATIVE PERFORMANCE OF THE TREASURY'S BENCHMARK 30YEAR BOND AND THE DOW JONES INDUSTRIAL AVERAGE FROM 1989 TO THE PRESENT AND FOUND A STRONG CORRELATION HE PREDICTS THE RELATIONSHIP BETWEEN DECLINING RATES AND RISING STOCKS WILL CONTINUE IS THERE A REASON TO BELIEVE STOCKS AND BONDS MOVE IN DIFFERENT DIRECTIONS I DON'T THINK SO HE SAYS THE BOND MARKET IS AN EXCELLENT LEADING INDICATOR OF THE STOCK MARKET MR SOHN PREDICTS THAT THE YIELD ON THE LONG BOND WILL FALL TO 55 OVER THE NEXT SIX MONTHS SENDING MORE FUNDS IN SEARCH OF HIGHER RETURNS THAT MONEY POURING INTO THE STOCK MARKET WILL LIFT THE INDUSTRIAL AVERAGE ANOTHER 50 TO 100 POINTS OVER THE PERIOD MR SOHN SAYS THE STOCK MARKET WILL CONTINUE TO BENEFIT FROM LOWER RATES HE SAYS STOCKS COMPETE WITH BONDS SO AS BOND YIELDS COME DOWN STOCKS LOOK MORE ATTRACTIVE EVEN MORE BULLISH IS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA HE ARGUES THAT STOCKS HAVE ENTERED THE THIRD LEG OF THE BULL MARKET WHICH WILL REALLY TAKE OFF AFTER CHRISTMAS AND DRIVE THE INDUSTRIAL AVERAGE ABOVE 4000 A STRONGERTHANEXPECTED ECONOMY WILL FUEL THE ADVANCE MR HAYS SAYS HE BELIEVES LONGTERM INTEREST RATES HAVE FALLEN FAR MORE THAN ECONOMIC CONDITIONS MERIT INVESTORS ARE SO PESSIMISTIC THEY FOCUS ONLY ON THE BAD NEWS MR HAYS SAYS FOR INSTANCE WHILE THE LATEST EMPLOYMENT SURVEY OF COMPANIES SHOWED A LOSS OF 39000 JOBS IN AUGUST A SURVEY OF HOUSEHOLDS SHOWED A GAIN OF 409000 JOBS MR HAYS ADDS THAT WORKERS ALSO ARE RACKING UP MORE OVERTIME HOURS NOW THAN EVER BEFORE AND INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE ARE AT THE LOWEST LEVEL IN MORE THAN FOUR YEARS AS A RESULT STOCK AND BOND PRICES WILL MOVE IN OPPOSITE DIRECTIONS MR HAYS PREDICTS THE STRONG ECONOMY WILL PUSH INTEREST RATES HIGHER AND BETTER EARNINGS WILL POWER THE STOCK MARKET HE SAYS THE STOCK AND BOND MARKETS ALWAYS DECOUPLE IN THE THIRD LEG OF A BULL MARKET MR HAYS SAYS STOCK PRICES ROSE ON UPBEAT INFLATION NEWS THE DOW JONES INDUSTRIAL AVERAGE SURGED 3214 POINTS TO 362163 STANDARD & POOR'S 500STOCK INDEX CLIMBED 422 TO 46172 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 219 TO 25593 VOLUME ON THE BIG BOARD CLIMBED TO 266460000 SHARES FROM 257130000 SHARES THURSDAY RISING ISSUES OUTNUMBERED DECLINERS 1322 TO 676 FOR THE WEEK THE INDUSTRIAL AVERAGE LOST 034 S&P 500 INCHED UP 008 AND THE BIG BOARD COMPOSITE DROPPED 011 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 023 TO 11285 STOCK PRICES BOUNDED HIGHER AFTER THE LABOR DEPARTMENT REPORTED THAT PRODUCER PRICES FELL IN AUGUST MANY ECONOMISTS HAD EXPECTED A SLIGHT RISE THE NEWS SENT BOND PRICES HIGHER TOO NATIONAL SEMICONDUCTOR ROSE 1 TO 20 1/2 ON UPBEAT FIRSTQUARTER EARNINGS BANK STOCKS ROSE ON EXPECTATIONS OF GOOD EARNINGS FOR THE GROUP CHEMICAL BANKING WAS UP 7/8 TO 44 JP MORGAN 1 3/8 TO 79 AND BANK OF NEW YORK 1 1/2 TO 56 3/8 PARAMOUNT JUMPED 4 1/4 TO 61 1/8 AND VIACOM ROSE 3/8 TO 66 THE TWO COMPANIES ARE CONSIDERING A STOCK SWAP THAT WOULD CREATE AN ENTERTAINMENT GIANT THE WALL STREET JOURNAL REPORTED PARAMOUNT ALSO REPORTED THAT FIRSTQUARTER EARNINGS ROSE TO 101 A SHARE FROM 96 CENTS A SHARE A YEAR EARLIER DRUG STOCKS WERE MIXED DESPITE PRESIDENT CLINTON'S PLAN TO REQUIRE PHARMACEUTICAL COMPANIES TO GIVE AT LEAST A 15 REBATE TO THE GOVERNMENT FOR DRUGS UNDER MEDICARE AND MEDICAID PFIZER LOST 1 1/4 TO 61 3/8 AND WARNERLAMBERT FELL 1 7/8 TO 67 1/4 BUT UPJOHN GAINED 1/2 TO 27 1/2 ERICSSON CLIMBED 2 1/2 TO 52 1/2 ON NASDAQ THE COMPANY SAID IT FILED A COUNTERSUIT AGAINST INTERDIGITAL TECHNOLOGY A UNIT OF INTERDIGITAL COMMUNICATIONS CORP ON THURSDAY INTERDIGITAL TECHNOLOGY SAID IT FILED A PATENT SUIT AGAINST ERICSSON ATLANTIC SOUTHEAST AIRLINES ROSE 2 TO 29 ON NASDAQ THE COMPANY SAID IT FLEW 579 MILLION REVENUE PASSENGER MILES IN AUGUST AN 187 INCREASE FROM THE YEAREARLIER LEVEL 9309130070 930913 BUSINESS BRIEF SNAPPLE BEVERAGE CORP CONTROLLING HOLDERS TO SELL FOUR MILLION OF FIRM'S SHARES SNAPPLE BEVERAGE CORP VALLEY STREAM NY SAID ITS CONTROLLING SHAREHOLDERS PLAN TO SELL FOUR MILLION SHARES OF THE HIGHFLYING COMPANY WHICH AT CURRENT PRICES WOULD BE WORTH ABOUT 215 MILLION THE BEVERAGE COMPANY'S STOCK PRICE HAS SOARED SINCE ITS INITIAL PUBLIC OFFERING IN DECEMBER AT 10 A SHARE THE COMPANY HAS ANNOUNCED TWO 2FOR1 STOCK SPLITS THE LATEST TO TAKE EFFECT LATE THIS MONTH THE HOLDERS WHO INCLUDE 13 OFFICERS AND DIRECTORS SO FAR HAVEN'T SOLD ANY SHARES AFTER THE INITIAL OFFERING THE COMPANY SAID THE GROUP IS SELLING ABOUT 8 OF ITS HOLDINGS UNDERWRITERS LED BY PAINEWEBBER INC HAVE BEEN GRANTED AN OPTION TO PURCHASE AN ADDITIONAL 600000 SHARES TO COVER OVERALLOTMENTS IN OVERTHECOUNTER TRADING FRIDAY SNAPPLE SHARES CLOSED AT 5375 UP 250 OR 49 BEFORE THE ANNOUNCEMENT 9309130068 930913 THE CLINTON HEALTH PLAN SWEEPING PROPOSAL CLINTON HEALTH PLAN PUSH COOMPETITION BE READY TO REGULATE COMPREHENSIVE CARE SCHEME WILL SET TERMS OF A BATTLE NOT SOON TO BE RESOLVED STRONG ARM OF GOVERNMENT BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S AMBITIOUS HEALTHCARE PROPOSAL PROMISES TO RELY ON THE UNSEEN HAND OF THE MARKETPLACE BUT ITS REAL POWER STEMS FROM THE STRONG ARM OF GOVERNMENT AS OUTLINED IN A 239PAGE DRAFT CIRCULATING IN WASHINGTON THE CLINTON PROPOSAL IS A SWEEPING YET INTRICATE BLUEPRINT FOR OVERHAULING THE COUNTRY'S NEARLY 1 TRILLION HEALTH SYSTEM THROUGH NEW REQUIREMENTS ON EMPLOYERS THE PLAN WOULD GUARANTEE A COMPREHENSIVE PACKAGE OF HEALTH BENEFITS TO ALL AMERICANS WHILE TAKING UNPRECEDENTED STEPS TO HALVE THE PROJECTED GROWTH RATE IN NATIONAL MEDICAL SPENDING BY THE LATE 1990S THE PRESIDENT'S REMARKABLY EXHAUSTIVE PROPOSAL IS ONLY THE OPENING SHOT IN WHAT IS SURE TO BE A LONG AND ARDUOUS POLITICAL STRUGGLE CONGRESS IS CERTAIN TO MAKE MAJOR CHANGES AND CONTROVERSY IS BUILDING OVER HOW THE PLAN IS TO BE PAID FOR YET MR CLINTON'S PLAN CLEARLY ESTABLISHES THE TERMS OF THE DEBATE TO COME A DEBATE THAT LAWMAKERS AND INTEREST GROUPS AGREE STANDS THE BEST CHANCE IN DECADES OF EVENTUALLY YIELDING A SYSTEM THAT DELIVERS HIGHQUALITY AFFORDABLE MEDICAL CARE TO EVERYONE ONE MARK OF THE MOMENTOUSNESS OF THE CLINTON PROPOSAL IS THAT EVEN SUCH INTEREST GROUPS AS THE AMERICAN MEDICAL ASSOCIATION WHICH HAS STYMIED NUMEROUS EFFORTS TO REVAMP THE HEALTH SYSTEM SINCE THE 1930S AND THE AMERICAN HOSPITAL ASSOCIATION ARE TREATING IT WITH RESPECT IT IS CERTAINLY A STEP IN THE RIGHT DIRECTION SAYS JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMA THE PLAN WHICH WAS DEVISED UNDER THE SUPERVISION OF HILLARY RODHAM CLINTON AIMS TO STIMULATE MARKET FORCES SO THAT HEALTH PLANS AND PROVIDERS COMPETE ON THE BASIS OF QUALITY SERVICE AND PRICE BUT LOOMING OVER THE NEW SYSTEM WOULD BE TOUGH NEW FEDERAL AND STATE POWERS AT THE VERY HEART OF THE PLAN BY WHICH MR CLINTON WOULD FINANCE THE SYSTEM LIES A GOVERNMENT MANDATE THE STIPULATION THAT EVERY BUSINESS PAY AT LEAST PART OF HEALTHINSURANCE PREMIUMS FOR ITS EMPLOYEES EVEN THOSE WHO WORK AS LITTLE AS 10 HOURS A WEEK MR CLINTON'S ADVISERS SAY THAT IS THE FAIREST MOST EFFICIENT WAY TO ENSURE THAT EVERYONE CONTRIBUTES SOMETHING TO THE NEW SYSTEM BUT MANY SMALL BUSINESSES IN PARTICULAR BRISTLE AT THE CONCEPT AT THE SAME TIME A PRESIDENTIALLY APPOINTED NATIONAL HEALTH BOARD WOULD SET STRICT BUDGETS THAT IN TURN WOULD CAP THE AMOUNT PRIVATE HEALTH INSURERS COULD CHARGE THE PLAN WOULD ALSO SET UP NEW BUREAUCRACIES IN EVERY STATE THAT COULD LIMIT ENROLLMENT IN HIGHCOST HEALTH PLANS AND IN SOME CASES APPROVE HOW MUCH A DOCTOR COULD CHARGE FOR SERVICES THE GOVERNMENT'S REACH WOULD EXTEND INTO SOME NARROWER AREAS TOO FOR INSTANCE A SPECIAL NATIONAL ADVISORY COUNCIL FOR MEDICAL SCHOOLS WOULD DETERMINE THE APPROPRIATE NUMBER OF TRAINING SLOTS FOR EACH SPECIALTY ATTORNEYS' FEES IN MALPRACTICE CASES WOULD BE LIMITED TO A MAXIMUM OF ONETHIRD OF AN AWARD WHITE HOUSE ADVISERS SAY THAT MANY OF THE CONTROLS ARE MERELY A BACKUP MECHANISM IN CASE THE PLAN'S SPURRING OF THE MARKET IS NOT AS EFFECTIVE AS ANTICIPATED THE GOVERNMENT IS GOING TO SET THE STANDARDS GUARANTEE HIGHQUALITY AFFORDABLE CARE AND THEN GET OUT OF THE WAY WHITE HOUSE HEALTH ADVISER IRA MAGAZINER MAINTAINED AT A BRIEFING FOR JOURNALISTS YESTERDAY AFTERNOON MANY EXPERTS THOUGH PREDICT THAT THE CONTROLS WILL QUICKLY BECOME THE DRIVING FORCE THAT'S WHERE THE REAL ACTION IS SAYS FRANK SLOAN A HEALTH POLICY AND ECONOMICS PROFESSOR AT DUKE UNIVERSITY THE REST OF THIS STUFF IS RHETORIC TED MARMOR A HEALTH AND WELFARE EXPERT AT YALE WHO HAS READ THE DRAFT OF THE PROPOSAL MR CLINTON PLANS TO UNVEIL OFFICIALLY SEPT 22 SAYS THAT WHAT THEY'RE TRYING TO DO IS TALK RIGHT AND GO LEFT ALL AT THE SAME TIME SUPPORTERS DON'T THINK THAT IS NECESSARILY BAD NEARLY EVERY OTHER NATION REGULATES MEDICAL PRICES IN SOME WAY IN ORDER TO PROVIDE HEALTH COVERAGE TO ALL CITIZENS MOREOVER BACKERS ARGUE THAT THE CURRENT US SYSTEM IS SUCH A MESS WHAT WITH 37 MILLION PEOPLE UNINSURED HEALTHCARE COSTS THE WORLD'S HIGHEST AND RISING AT MORE THAN TWICE THE RATE OF INFLATION AND AN INCREASINGLY FEARFUL MIDDLE CLASS THAT ONLY THE MUSCLE OF THE FEDERAL GOVERNMENT CAN FIX IT IN ADDITION THE DEGREE OF GOVERNMENT CONTROL IN THE PLAN IS FAR LESS THAN IT MIGHT BE EARLY IN HIS DELIBERATIONS DESPITE CONSIDERABLE PRESSURE FROM SOME MEMBERS OF HIS OWN PARTY MR CLINTON REJECTED THE MOST RIGID REGULATORY STRUCTURE OF ALL A SOCALLED SINGLEPAYER SYSTEM UNDER WHICH THE GOVERNMENT WOULD PAY ALL MEDICAL BILLS ALSO THE PROPOSAL SEEKS TO CUT RED TAPE IN MANY AREAS LIFTING SOME REGULATORY BURDENS ON MEDICAL LABS DOCTORS AND HOSPITALS BUT MR CLINTON'S PROPOSAL WOULD STILL PLACE GOVERNMENT IN A POSITION OF VAST POWER OVER AN AREA THAT TOUCHES EVERY PERSON AND BUSINESS THE PROSPECT TERRIFIES SOME THERE'S AN EXORBITANT AMOUNT OF HIDDEN GOVERNMENT CONTROL COMPLAINS MARK UGORETZ PRESIDENT OF THE ERISA INDUSTRY COMMITTEE WHICH REPRESENTS LARGE CORPORATIONS ON BENEFITS MATTERS WE DO NOT VIEW THAT AS REFORM WE VIEW THAT AS A STEP BACKWARD SOME ALSO WORRY THAT THE PARTICULAR BLEND OF IDEOLOGIES IS THE WORST OF BOTH WORLDS IT LACKS THE SIMPLICITY INHERENT IN A SINGLEPAYER SYSTEM WHILE CONTAINING ENOUGH REGULATION TO POTENTIALLY UNDERCUT THE FORCES OF COMPETITION THIS MAKES BOTH CONSERVATIVES AND LIBERALS UNHAPPY SAYS REP JIM COOPER A TENNESSEE DEMOCRAT WHO CHAMPIONS A PURE MARKETORIENTED MANAGED COMPETITION HEALTH PLAN YOU CAN'T HAVE A SAUSAGE PRODUCT WHEN IT COMES TO HEALTH CARE THE CLINTON PLAN THE FINAL DETAILS OF WHICH ARE STILL SUBJECT TO CHANGE WOULD GUARANTEE ALL CITIZENS AND LEGAL RESIDENTS OF THE US A UNIFORM PACKAGE OF HEALTH BENEFITS INCLUDING COVERAGE OF HOSPITALIZATION HOME HEALTH CARE PRESCRIPTION DRUGS SOME MENTAL HEALTH SERVICES DENTAL AND PREVENTIVE CARE NO ONE COULD BE DENIED OR LOSE THIS COVERAGE EVEN IF HE OR SHE BECAME SICK OR UNEMPLOYED MOVED OR SWITCHED JOBS EVERY EMPLOYER FROM THE SMALLEST CORNER GROCER TO THE LARGEST CORPORATION WOULD BE REQUIRED TO PAY ON BEHALF OF ITS WORKERS AT LEAST 80 OF THE AVERAGE PRICE OF THE BENEFITS PACKAGE OFFERED IN ITS REGION EMPLOYEES WOULD PAY THE REST 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 ALTHOUGH THE PRICE OF THE FEDERAL BENEFITS PACKAGE WOULD VARY WIDELY THROUGHOUT THE COUNTRY ADMINISTRATION OFFICIALS ESTIMATE THE AVERAGE IN 1994 WOULD BE 1800 FOR AN INDIVIDUAL POLICY AND 4200 FOR A FAMILY COVERAGE WOULD BE PURCHASED THROUGH STATEESTABLISHED HEALTH ALLIANCES REPRESENTING MOST EMPLOYERS AND INDIVIDUALS IN A GEOGRAPHIC AREA THE ALLIANCES WOULD AMOUNT TO GIANT INSURANCEBUYING POOLS LINKING LARGE NUMBERS OF CONSUMERS SO THEY WOULD HAVE GREATER CLOUT IN THE MARKETPLACE WHILE ALSO SPREADING THEIR RISK WIDELY THE ENTIRE SYSTEM WOULD BE COMMUNITY RATED MEANING THAT INSURERS WOULD NO LONGER BE ALLOWED TO CHARGE PEOPLE WITH PREEXISTING CONDITIONS SUCH AS CANCER AND AIDS MORE THAN THEY CHARGE OTHERS EACH YEAR THE ALLIANCES WOULD COLLECT MONEY FROM EMPLOYERS AND INDIVIDUALS AND CONTRACT WITH HEALTH PLANS BE THEY HEALTH MAINTENANCE ORGANIZATIONS FEEFORSERVICE PLANS OR HYBRIDS THAT MET FEDERAL STANDARDS ONCE A YEAR EVERYONE IN THE ALLIANCE WOULD ENROLL IN THE PLAN OF HIS OR HER CHOICE TO HELP THEM DECIDE ALLIANCES WOULD PUBLISH INFORMATION ON THE COST OF THE VARIOUS PLANS AND LIST THE DOCTORS AND HOSPITALS PARTICIPATING IN EACH THE ALLIANCES ALSO WOULD ISSUE ANNUAL QUALITY PERFORMANCE REPORTS ON EACH PLAN COMPANIES WITH MORE THAN 5000 EMPLOYEES WOULD BE ALLOWED TO FORM THEIR OWN CORPORATE ALLIANCES BUT THEY WOULD HAVE TO PROVIDE THE SAME FEDERALLY GUARANTEED BENEFITS PACKAGE AND MEET VIRTUALLY ALL OTHER GOVERNMENT GUIDELINES OVERSEEING THE ENTIRE SYSTEM WOULD BE A NATIONAL HEALTH BOARD WITH SEVEN MEMBERS APPOINTED BY THE PRESIDENT IT WOULD HAVE SEVERAL RESPONSIBILITIES THE MOST IMPORTANT AND POTENTIALLY MOST INTRUSIVE OF WHICH WOULD BE SETTING THE BUDGETS IN THE FORM OF PREMIUM TARGETS FOR THE REGIONAL ALLIANCES THE BUDGETS WOULD BE UNBENDING THE AVERAGE BID SUBMITTED BY HEALTH PLANS SEEKING TO DO BUSINESS WITH AN ALLIANCE COULD BE NO GREATER THAN THE TARGETS IF THE AVERAGE WAS HIGHER PLANS WOULD BE ASKED TO SUBMIT NEW BIDS IF ANY PLAN PERSISTED IN TRYING TO CHARGE SO MUCH THAT IT WOULD SKEW THE AVERAGE THE ALLIANCE COULD SIMPLY REFUSE TO CONTRACT WITH THE OFFENDER IN THE UNLIKELY EVENT THAT THE ALLIANCES ACCEPTED A SET OF BIDS OVER THE AVERAGE AN ASSESSMENT WOULD BE COLLECTED FROM PLANS AND THEIR PROVIDERS TO BRING THINGS BACK IN LINE IN THE END ACCORDING TO THE DRAFT DOCUMENT OTHER TOOLS AVAILABLE TO STATES TO CONTAIN COSTS INCLUDE SETTING RATES FOR HEALTH PROVIDERS THE ADMINISTRATION MAINTAINS THIS SETUP ISN'T A FORM OF PRICE CONTROLS BUT RATHER AN INCENTIVE TO FORCE TOUGH PRICE NEGOTIATIONS AMONG ALLIANCES HEALTH PLANS AND MEDICAL PROVIDERS MANY ARE SKEPTICAL WE BELIEVE THIS IS JUST ANOTHER WAY OF GETTING AT PRICE CONTROLS SAYS SEN JOHN CHAFEE A RHODE ISLAND REPUBLICAN WHO LEADS A SENATE GOP HEALTH TASK FORCE THAT WILL INTRODUCE AN ALTERNATIVE HEALTH BILL THIS WEEK BUT SOME IN THE HEALTH INDUSTRY ARE RELIEVED THAT THE PROPOSED COSTCURBING STRATEGY ISN'T MORE STRINGENT THE NEGOTIATING PROCESS THE PREMIUM TARGETS ARE INTENDED TO SPARK WOULD BE A WHOLE LOT BETTER THAN THE GOVERNMENT COMING IN AND TELLING YOU WHAT TO DO SAYS JAMES BENTLEY SENIOR VICE PRESIDENT FOR POLICY AT THE AMERICAN HOSPITAL ASSOCIATION THE ADMINISTRATION'S INTENT IN IMPOSING THESE PRIVATESECTOR SPENDING CAPS WHICH WOULD WORK ALONGSIDE CEILINGS ON MEDICARE AND MEDICAID SPENDING IS TO BRING THE GROWTH IN HEALTH EXPENDITURES DOWN TO THE GENERAL INFLATION RATE PLUS INCREASES IN POPULATION THE PROPOSAL ALSO HOPES TO WRING OUT WASTE THE WHITE HOUSE CONTENDS THE REGIONAL ALLIANCES WOULD STREAMLINE THE CURRENT SYSTEM AND ITS HODGEPODGE OF CORPORATE BENEFITS MANAGERS BROKERS AND HOSPITAL BOOKKEEPERS WHO MUST TRY TO MAKE SENSE OF MORE THAN 1500 DIFFERENT INSURANCE FORMS BUT SOME WORRY THAT HAND IN HAND WITH THE GOVERNMENT'S NEW REGULATORY POWER WOULD COME NEW LAYERS OF BUREAUCRACY THE CLINTON PLAN WOULD ESTABLISH A STAFF FOR THE NATIONAL HEALTH BOARD A COMMITTEE TO CONSIDER THE PRICING OF BREAKTHROUGH DRUGS A NEW QUALITY MANAGEMENT COUNCIL NEW NATIONAL AND REGIONAL COUNCILS ON GRADUATE MEDICAL EDUCATION A COMMITTEE TO PROVIDE ADVICE ON ADJUSTING THE ALLIANCES' PAYMENTS TO HEALTH PLANS AND VARIOUS OTHER BODIES MR MAGAZINER SAID AT YESTERDAY'S BRIEFING THAT HE ENVISIONS THE NATIONAL BOARD FUNCTIONING LIKE A BOARD OF DIRECTORS WITHOUT MUCH STAFF ALTHOUGH THE BOARD WOULD HAVE ULTIMATE RESPONSIBILITY FOR POLICING THE SYSTEM MUCH OF THE NEW POWER WOULD BE CONCENTRATED IN THE HANDS OF THE STATES AND ALLIANCES FOR EXAMPLE A STATE COULD ELECT TO ESTABLISH ITS OWN SINGLEPAYER SYSTEM IN WHICH IT WOULD CONTRACT DIRECTLY WITH MEDICAL PROVIDERS ON BEHALF OF EVERYONE IN THE STATE THE ALLIANCES WOULD HAVE TO APPROVE ALL MARKETING MATERIALS THAT HEALTH PLANS SENT OUT THE ALLIANCES COULD LIMIT TO THREE THE NUMBER OF HEALTH PLANS REIMBURSING PROVIDERS ON A FEEFORSERVICE BASIS THE ALLIANCES WOULD BAR DOCTORS FROM CHARGING PATIENTS MORE THAN AN ADOPTED FEE SCHEDULE PROVIDES A TACTIC KNOWN AS BALANCE BILLING THEN THERE'S THE BIGGEST GOVERNMENT CLAMP OF ALL IF A STATE CONTINUALLY FAILED TO COMPLY WITH FEDERAL REQUIREMENTS ACCORDING TO THE DRAFT DOCUMENT THE SECRETARY OF THE TREASURY WILL IMPOSE A PAYROLL TAX ON ALL EMPLOYERS IN THE STATE BIG ENOUGH TO PROVIDE HEALTH COVERAGE TO ALL RESIDENTS SUCH A MEASURE WHILE RESERVED FOR THE MOST EXTREME CIRCUMSTANCES UNDERSCORES THE TREMENDOUS UPHEAVAL TO THE SYSTEM THAT THE PRESIDENT IS SEEKING TO THOSE WHO FAVOR SLOWER INCREMENTAL CHANGE THAT IS JUST WRONGHEADED IN THE WORDS OF CHIP KAHN AN OFFICIAL OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA BUT OTHERS ARE CONVINCED THAT A TRULY RADICAL RESTRUCTURING OF HOW MEDICAL CARE IS DELIVERED AND PAID FOR IS THE ONLY WAY TO GO UNDER THE CLINTON PLAN THERE IS A CHANCE FOR REAL CHANGE TO BEGIN TO HAPPEN ARGUES JIM KAGEN A PRINCIPAL AT APM INC A NEW YORK HEALTHCARE CONSULTING FIRM AND THAT'S WHAT WE ALL WANT TO SEE BECAUSE THIS CHIPPING AWAY FOR THE PAST 10 YEARS HASN'T BEEN REAL EFFECTIVE THIS WILL BEGIN TO FORCE THINGS 9309130067 930913 BUSINESS BRIEF NOVA CORP SALE OF AFFILIATE COULD RAISE AS MUCH AS 1135 MILLION NOVA CORP OF ALBERTA SAID IT PLANS TO OFFER NOVALTA RESOURCES INC ITS AFFILIATE FOR SALE THE CALGARY PIPELINE AND PETROCHEMICALS COMPANY SAID NOVALTA AN ALBERTA GAS PRODUCER HAS 364 BILLION CUBIC FEET OF PROVED NATURAL GAS RESERVES 46 MILLION BARRELS OF GAS LIQUIDS RESERVES AND AVERAGED 70 MILLION CUBIC FEET A DAY OF GAS PRODUCTION IN THE FIRST SIX MONTHS OF 1993 RICHARD WYMAN AN ANALYST WITH CALGARY BROKERAGE FIRM PETERS & CO SAID THAT BASED ON THESE FIGURES NOVA MIGHT EXPECT TO RAISE BETWEEN 100 MILLION AND 150 MILLION CANADIAN DOLLARS 76 MILLION AND 1135 MILLION FROM THE SALE OF THE UNIT NOVA SENIOR VICE PRESIDENT JOHN FEICK SAID THE COMPANY HAD TO DECIDE WHETHER TO KEEP NOVALTA AS A PARTIAL HEDGE AGAINST INCREASING NATURALGAS FEEDSTOCK COSTS FOR ITS ALBERTA PETROCHEMICALS BUSINESSES OR TO CAPTURE ITS MARKET VALUE WHICH HAS RISEN SIGNIFICANTLY DUE TO LARGE RECENT INCREASES IN NATURAL GAS PRICES MR FEICK SAID NOVALTA IS BEING SOLD BECAUSE NOVA CAN USE THE CASH FOR OTHER THINGS HE DECLINED TO BE MORE SPECIFIC 9309130066 930913 LEISURE & ARTS TELEVISION CAN THEY TALK ZZZZZZZZZZZZZZZZZZZZ BY ROBERT GOLDBERG NEW YORK A FEW NIGHTS BACK BARBARA WALTERS WAS INTERVIEWING AL PACINO FOR ONE OF HER SPECIALS ABOUT TWOTHIRDS OF THE WAY IN SHE PUT A SYMPATHETIC EXPRESSION ON HER FACE AND ASKED ONE OF THOSE BARBARA WALTERS QUESTIONS WHAT'S YOUR FANTASY MR PACINO STARED AT HER FOR A LONG MOMENT MY FANTASY ONLY THE FAINTEST SMILE CROSSED HIS INTELLIGENT EYES TO HAVE MY OWN TALK SHOW WELL WHY NOT NOTHING GETS MORE ATTENTION THESE DAYS THAN CHAT WITH THE PREMIERES OF DAVID LETTERMAN'S LATE SHOW CBS WEEKNIGHTS 1135 PM1235 AM AND CHEVY CHASE'S CHEVY CHASE SHOW FOX WEEKNIGHTS 11 PM12 AM JOINING JAY LENO AND ARSENIO HALL THE LATE NIGHT AIRWAVES ARE NOW THOROUGHLY CLOGGED WITH TALK SHOWS AND THE OTHER MEDIA ARE CLOGGED WITH TALK ABOUT THEM I SPENT LAST WEEK WATCHING THEM ALL STAYING UP THROUGH THE DARK HOURS NIGHT AFTER NIGHT WITH JAY AND DAVE AND CHEVY AND ARSENIO IT WAS HAZARDOUS DUTY BUT SOMEONE HAD TO DO IT SO HERE'S A REPORT FROM THE FRONT LINES OF THE TALK SHOW WARS CHEVY CHASE DEBUTED ON TUESDAY HE STARTED OUT WITH A VOMITING HAND PUPPET AND IT WAS ALL DOWNHILL FROM THERE STRIDING ACROSS THE STAGE OF THE OLD AQUARIUS THEATER IN LOS ANGELES WITH A DESPERATELY INGRATIATING SMILE ON HIS FACE CHEVY LAUNCHED INTO A NERVOUS HOUR OF SHAKY MATERIAL HE HAD BROUGHT ALONG SOME SHOW BIZ FRIENDS FOR HIS OPENER INCLUDING THE OTHER WOMAN IN MY LIFE GOLDIE HAWN HIS FREQUENT FILMACTING PARTNER PERCHED ON THE SOFA AND GUSHED I HOPE EVERYBODY KNOWS HOW WONDERFUL YOU ARE SHE CALLED HIM HONEY AND SWEETIE A HALFDOZEN TIMES WENT OVER A FEW TEPID DO YOU REMEMBER THE TIME WE STORIES AND FINALLY BROKE INTO SONG LOOK AT THAT FACE SHE WARBLED THAT FACE IS JUST A MIRACLE THEY SMOOCHED DANCED TOGETHER AND GENERALLY DEMONSTRATED THAT THEY'VE BEEN IN HOLLYWOOD WAY TOO LONG AROUND THE DIAL ARSENIO HALL FOR ALL HIS WOULDBE HIPSTER JIVING WASN'T DOING MUCH BETTER WHAT'S YOUR FAVORITE MOVIE HE ASKED ROSANNA ARQUETTE ARE YOU A VERY SPIRITUAL PERSON BY WEDNESDAY SOME OF CHEVY'S STRENGTHS HAD BEGUN TO EMERGE HIS WIT AND HIS DEADPAN I LIKE TO KEEP IN TOUCH WITH MY AUDIENCES BUT I DON'T WANT TO PICK UP ANY RASHES AS ANYONE WHO REMEMBERS MR CHASE'S PRATFALLS RECALLS HE'S NOT AFRAID TO MAKE FUN OF HIMSELF OR TO PUT A GERBIL DOWN HIS PANTS WHAT COLOR UNDERWEAR DO YOU WEAR AN AUDIENCE MEMBER ASKED HIM IT CHANGES CHEVY REPLIED DEPENDING ON WHAT I'VE HAD FOR LUNCH MR CHASE HAS RESURRECTED THE OLD WEEKEND UPDATE FORMAT THAT HE ORIGINATED ON SATURDAY NIGHT LIVE AND IT SERVES HIM AS WELL AS EVER AFTER ALL GENERALISSIMO FRANCISCO FRANCO IS STILL DEAD THEN TOO CHEVY HAS A MODICUM OF ACTUAL MUSICAL ABILITY PERHAPS MORE EVEN THAN BILL CLINTON AND HE'S GOT A KEYBOARD BUILT INTO HIS DESK SITTING IN WITH THE BAND LED BY SAXMAN TOM SCOTT OR SINGING DOOWOP ALONG WITH THE ENCHANTERS MR CHASE BRINGS AN EXTRA TUNEFUL DIMENSION TO THE SHOW OVERALL CHEVY COMES ACROSS AS A GENUINELY WARM SMART FUNNY GUY THE KIND OF GUY YOU'D WANT AS A FRIEND BUT NOT AS A TALK SHOW HOST HE DOESN'T KNOW HOW TO ASK QUESTIONS HIS CHAT IS BLAND PORRIDGE ONE VERBATIM EXCHANGE YOU LOOK FABULOUS YOU LOOK WONDERFUL YOU LOOK FANTASTIC MR CHASE MAY BE FUNNIER AS A STRAIGHT MAN PLAYING OFF ODDBALL REAL LIFE GUESTS BUT RIGHT NOW HE'S TRYING TO BE TOO LOVABLE IT'S EMBARRASSING DAVID LETTERMAN BY CONTRAST CAN HE POSITIVELY MALICIOUS BUT HE'S ALSO AMUSING TO WATCH NOW ON CBS HE'S BASICALLY DOING THE SAME PROGRAM AS HE DID FOR YEARS ON NBC JUST 55 MINUTES EARLIER WITH THE SAME SNEAKY INNUENDO THE SAME WACKY TRIVIA THE SAME TONGUEINCHEEK DIGS ON THE NEW SHOW HE TOOK TO CALLING DEMI MOORE DINTY MOORE WHEN MICHAEL J FOX TRIED TO BE GRACIOUS I DON'T WANT TO SELL MOVIES I WANT TO TALK ABOUT YOU MR LETTERMAN SHUT HIM DOWN WELL WE GOTTA GO THERE WERE MORE IMPORTANT THINGS TO DO LIKE KICK A FEW FOOTBALLS INTO THE AUDIENCE STILL IN THE CURRENT LATE NIGHT WARS DAVE SEEMS TO HAVE ALL THE AMMUNITION ENOUGH CLOUT TO GET VICE PRESIDENT AL GORE ONTO HIS SHOW AND TYPICALLY HE MADE EVEN MR GORE WAIT WHILE HE WENT THROUGH HIS JOKES HIS CHITCHAT AND A TOP 10 LIST MAYBE IT'S ONLY ME BUT THERE'S SOMETHING A LITTLE BIZARRE ABOUT THE VICE PRESIDENT OF THE UNITED STATES COOLING HIS HEELS WHILE SOME COMEDIAN TROTS OUT THE TEN SIGNS THAT TELL YOU YOU HAVE A BAD AIRLINE PILOT MR GORE WAS A GOOD SPORT PITCHING HIS NEW EFFICIENT ADMINISTRATION PLAN LIKE AN ACTOR WITH A NEW MOVIE SMASHING AN ASHTRAY EVEN OFFERING UP A TOP TEN LIST OF HIS OWN AND JUST HOW MUCH TAXPAYER MONEY WENT INTO DRAFTING TEN REASONS IT'S COOL TO BE VICE PRESIDENT LIKE NUMBER THREE YOU GET TO EAT ALL THE FRENCH FRIES THE PRESIDENT CAN'T GET TO GOOD LUCK WITH THIS GOVERNMENT THING SAID DAVE IN PARTING BY THURSDAY AND FRIDAY SOME PATTERNS HAD BEGUN TO SURFACE CHEVY WAS RECYCLING OTHER PEOPLE'S GUESTS LIKE KATHLEEN TURNER THE DAY AFTER A TONIGHT APPEARANCE WEARING A SIMILAR OUTFIT MAKING THE SAME STRANGE GRIMACES EVEN REPEATING THE SAME LINES THERE'S SOMETHING SO SATISFYING ABOUT BEATING UP MEN CLEARLY IT'S ONLY A MATTER OF WEEKS BEFORE ALL THESE SHOWS RUN OUT OF NEW GUESTS DESPITE THE MUCHBALLYHOOED COMPETITION THE MORE YOU FLIP AROUND THE DIAL FROM DAVE TO JAY TO ARSENIO TO CHEVY THE MORE THEY SEEM TO BLEND TOGETHER THEY'RE ALL MIDDLEAGED MALE COMEDIANS WITH BIG BANDS AND BIGGER EGOS TELLING A FEW JOKES TALKING BUT NOT LISTENING TO THE SAME ACTOR ON A SOFA MIXING IN A FEW GOOFY BITS SURE THEY'RE A LITTLE DIFFERENT JAY'S THE BEST INTERVIEWER DAVE'S THE MOST SLY FUN TO WATCH CHEVY NEEDS WORK ON HIS JUMP SHOT BUT I TAKE THIS AS THE FIRST MANIFESTATION OF THE 500CHANNEL WORLD WITH TOO MANY CHOICES EACH PRETENDING TO BE REVOLUTIONARY WHEN THEY'RE REALLY ALMOST INTERCHANGEABLE CONAN O'BRIEN IS STILL TO COME STARTING THIS WEEK ON NBC AFTER TONIGHT BUT AS FOR ARSENIO AND DAVE AND CHEVY AND JAY LET ME GIVE YOU SOME ADVICE ADVICE YOU MIGHT HAVE MISSED IN ALL THE HYPE TURN OFF YOUR TV AND GO TO BED NONE OF THIS STUFF IS WORTH MISSING A GOOD NIGHT'S SLEEP FOR 9309130065 930913 MCDONNELL FACES NEW POTENTIAL SETBACK AS C17'S WING IS DAMAGED IN STRESS TEST BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP'S C17 TRANSPORT WITH YEARS OF COST OVERRUNS AND TECHNICAL PROBLEMS INCURRED YET ANOTHER POTENTIAL SETBACK DURING GROUND TESTS OF THE PLANE'S WINGS LAST FRIDAY IN A TERSE STATEMENT ISSUED OVER THE WEEKEND THE COMPANY SAID THAT THE LEFT WING OF A C17 UNDERGOING STATIC TESTS SUSTAINED DAMAGE WHEN SUBJECTED TO STRESSES APPROACHING 150 OF DESIGN LIMIT LOADS PRELIMINARY DATA INDICATE THAT THE AVERAGE STRESS ON THE WING WHEN IT FAILED WAS BETWEEN 144 AND 147 ACCORDING TO ONE PERSON FAMILIAR WITH THE RESULTS AND THE COMPANY BELIEVES THAT A SECOND PORTION OF THE WING FAILED BECAUSE OF STRESSES CREATED BY THE PREMATURE CANCELLATION OF THE TEST ACHIEVING THE FULL 150 LOAD LIMIT IS CRUCIAL BECAUSE IT IS SPELLED OUT IN THE COMPANY'S CONTRACT AND AIR FORCE OFFICIALS HAVE USED IT AS A STRICT BENCHMARK TO SELL THE PLANE TO CONGRESS AND THE PUBLIC BUT THE WORDING AND THE TIMING OF THE RELEASE SUGGESTED THAT A PART OF THE WING IN FACT MAY HAVE FAILED TO UNQUESTIONABLY MEET BINDING AIR FORCE REQUIREMENTS THAT THE TRANSPORT BE ABLE TO WITHSTAND AT LEAST 15 TIMES THE STRUCTURAL STRESS IT IS EXPECTED TO ENCOUNTER DURING A LIFETIME OF NORMAL USE AND THERE COULD BE DISPUTES BETWEEN THE COMPANY THE AIR FORCE AND CONGRESSIONAL CRITICS OF THE PLANE ON INTERPRETING THE TEST RESULTS REFLECTING THE CAUTIOUS TONE OF THE RELEASE COMPANY SPOKESMAN LARRY MCCRACKEN SAID YESTERDAY THAT IT WAS STILL A LITTLE PREMATURE TO MAKE A CONCLUSION OF THE TEST RESULT MR MCCRACKEN HOWEVER INDICATED THAT THE FAILURE WAS LIKELY TO CAUSE ONLY A SLIGHT TWOWEEK DELAY IN THE GROUNDTEST PROGRAM AND HE PREDICTED THERE WOULDN'T BE A SIGNIFICANT FINANCIAL IMPACT ON THE TROUBLED PROGRAM AIR FORCE OFFICIALS WHO ALSO SPENT THE WEEKEND ANALYZING TEST RESULTS ARE EXPECTED TO RELEASE THEIR PRELIMINARY CONCLUSIONS SOON BUT THEY ARE EXPECTED TO STOP SHORT OF SAYING FLATLY THAT THE PLANE MET THE CONTRACTUAL STRESS REQUIREMENT MCDONNELL DOUGLAS SAID THAT THE GROUND TEST WAS SUCCESSFUL TO THE POINT THAT IT MAY CLEAR C17S UNDERGOING FLIGHT TESTS AT EDWARDS AIR FORCE BASE IN CALIFORNIA TO BEGIN ACCUMULATING ACTUAL FLIGHT LOAD DATA OPERATING AT OR NEAR THEIR 100 DESIGN LIMIT CURRENTLY THE PLANES ARE RESTRICTED TO 80 OF THAT LIMIT DETAILS OF WHAT HAPPENED AT THE COMPANY'S LONG BEACH CALIF FACILITY MAY NOT COME OUT FOR SOME TIME BUT INDICATIONS ARE THAT THEY MAY TURN OUT TO BE MORE SIGNIFICANT THAN THE COMPANY ACKNOWLEDGED THE ANNOUNCEMENT COMES ONLY A FEW DAYS BEFORE HIGHRANKING PENTAGON ACQUISITION OFFICIALS ARE SCHEDULED TO RESUME MEETING ON THE FATE OF THE C17 LAST OCTOBER A C17 TEST PLANE'S WINGS BUCKLED AND FRACTURED DURING A SMILIAR TEST AT 128 OF THE MAXIMUM LOAD LIMIT THAT SPECTACULAR FAILURE PROMPTED THE PENTAGON TO ORDER A TOPPRIORITY REVIEW OF STRUCTURAL DEFICIENCIES ON WINGS FLAPS AND SLATS USED ON THE C17 JUST A FEW WEEKS AGO DEFENSE OFFICIALS SAID THEY WERE CONCERNED ABOUT ANOTHER ROUND OF PREMATURE BUCKLING AND EXTRA STRAIN ON PORTIONS OF THE PLANE'S WING DURING GROUND TESTS MEANWHILE A WEEKLY INDUSTRY NEWSLETTER REPORTED THAT THE RETROFIT PROGRAM TO STRENGTHEN THE PLANE'S WINGS MAY LEAD TO LONGTERM CORROSION PROBLEMS IN EDITIONS DISTRIBUTED TODAY DEFENSE WEEK DISCLOSED THAT AN INTERNAL PENTAGON REPORT CONCLUDES THAT ATTACHING COATED STAINLESS STRAPS INSIDE THE PLANE'S WING PANELS ADDS TECHNICAL RISK FROM POSSIBLE INSTALLATION QUALITY AND COULD PROMPT INCREASED CORROSION OF SOME ALUMINIUM PARTS 9309130064 930913 THE OUTLOOK ECONOMY'S SLOW PACE MASKS COMPETITIVENESS BY ALFRED L MALABRE JR NEW YORK CONCERN ABOUT THE ECONOMY'S SLUGGISH PACE OBSCURES A WELCOME DEVELOPMENT OF TRANSCENDENT IMPORTANCE A REMARKABLE IMPROVEMENT IN AMERICA'S ABILITY TO COMPETE IN WORLD MARKETS BEHIND THIS IMPROVEMENT IS THE INCREASINGLY COMPETITIVE COST OF US LABOR THIS PARTLY REFLECTS THE DOLLAR'S REDUCED FOREIGNEXCHANGE VALUE SINCE THE MID1980S BUT IT ALSO REFLECTS MORE RESTRAINED PAY INCREASES AND STRONGER PRODUCTIVITY GAINS IN THE US THAN IN MOST OTHER NATIONS THIS INCREASED US COMPETITIVENESS CAN BE GLIMPSED IN INTERNATIONAL COMPARISONS OF PRODUCTIVITY AND LABOR COSTS IN MANUFACTURING LAST YEAR ACCORDING TO A RECENT LABOR DEPARTMENT STUDY THE HOURLY OUTPUT OF US WORKERS ROSE 46 THIS WAS A BETTER SHOWING THAN IN EIGHT OF 10 OTHER COUNTRIES SURVEYED IT EASILY EXCEEDED COMPARABLE PRODUCTIVITY GAINS IN SUCH IMPORTANT US COMPETITORS AS GERMANY 06 FRANCE 29 ITALY 37 AND CANADA 42 IN JAPAN PRODUCTIVITY FELL 62 BY NO COINCIDENCE THE US ALSO EXCELLED IN HOLDING DOWN LABOR COSTS IN THE US LABOR COSTS PER UNIT OF OUTPUT FELL 15 LAST YEAR THESE COSTS EXPRESSED IN TERMS OF THE DOLLAR'S INTERNATIONAL VALUE ROSE SHARPLY IN MOST OF THE OTHER COUNTRIES STUDIED AMONG THE SHARPEST INCREASES 183 IN JAPAN 12 IN GERMANY 113 IN THE NETHERLANDS AND 72 IN FRANCE THE RECENT US PERFORMANCE IS IN MARKED CONTRAST TO ITS SHOWING SOME YEARS AGO IN 197985 US PRODUCTIVITY GAINS AVERAGED ONLY 2 A YEAR THIS WAS APPRECIABLY LESS THAN COMPARABLE INCREASES IN SUCH NATIONS AS ITALY 5 BRITAIN 46 THE NETHERLANDS 42 JAPAN 39 FRANCE 31 AND CANADA 24 IN THE SAME PERIOD NOT SURPRISINGLY LABOR COSTS IN THE US INCREASED SHARPLY WHILE THEY FELL IN MOST OTHER COUNTRIES THE AVERAGE YEARLY INCREASE IN THE US WAS 49 THIS COMPARED WITH DECLINES OF 75 IN THE NETHERLANDS 54 IN SWEDEN 4 IN GERMANY 34 IN FRANCE 33 IN ITALY 2 IN BRITAIN AND 08 IN JAPAN DATA FOR SUCH EMERGING INDUSTRIAL NATIONS AS SOUTH KOREA AND TAIWAN ARE LESS COMPLETE BUT THEY ALSO POINT TO IMPROVING US COMPETITIVENESS WHILE LABOR COSTS IN THE US WERE FALLING LAST YEAR SUCH COSTS EXPRESSED IN DOLLAR TERMS ROSE 124 IN TAIWAN AND 05 IN SOUTH KOREA TO BE SURE HOURLY PAY LEVELS IN SUCH EMERGING NATIONS REMAIN FAR LESS THAN IN THE US BUT THE GAPS HAVE NARROWED SINCE THE MIDDLE OF THE LAST DECADE IN SOME CASES CONSIDERABLY IN 1985 HOURLY PAY IN SOUTH KOREA TAIWAN AND MEXICO ALL AVERAGED ABOUT 10 OF THE US LEVEL LAST YEAR THE SOUTH KOREAN RATE REACHED 30 OF THE COMPARABLE US PAY FIGURE THE TAIWANESE RATE REACHED 35 AND THE MEXICAN RATE ROSE TO ABOUT 15 IN 1985 HOURLY PAY IN THE US WAS ALSO A GOOD DEAL HIGHER THAN IN THE OTHER MEMBERS OF THE SOCALLED GROUP OF SEVEN THE SEVEN MAJOR TRADING NATIONS IN CANADA THE PAY LEVEL WAS ABOUT 85 OF THE US RATE THE GERMAN PAY RATE WAS 75 OF THE US LEVEL LOWER STILL WERE THE COMPARABLE RATES IN ITALY 60 FRANCE 58 JAPAN 50 AND BRITAIN 45 LAST YEAR BY COMPARISON HOURLY PAY IN THE US WAS LOWER THAN IN MOST OTHER G7 NATIONS IN GERMANY THE HOURLY RATE WAS SOME 60 HIGHER THAN IN THE US IN ITALY THE RATE WAS ABOUT 20 ABOVE THE US FIGURE ONLY IN BRITAIN WAS HOURLY PAY STILL BELOW THE US LEVEL BUT THE ONCEHUGE GAP WAS NEARLY GONE AMERICA'S IMPROVING COMPETITIVENESS HELPS EXPLAIN WHY IN RECENT YEARS US EXPORTS HAVE BEEN THE FASTESTGROWING COMPONENT OF THE NATION'S ECONOMY AT PRESENT SOME 12 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT IS RELATED TO EXPORTS THIS IS UP FROM ONLY 7 IN 1985 EARLIER IN CONTRAST THE EXPORT SHARE OF GDP SHOWED LITTLE CHANGE H ERICH HEINEMANN CHIEF ECONOMIST OF LADENBURG THALMANN & CO NOTES THAT US EXPORTS ADJUSTED FOR CHANGES IN PRICES AND EXCHANGE RATES NOW MAKE UP ABOUT 23 OF THE TOTAL EXPORTS OF INDUSTRIAL NATIONS IN 1985 THE US SHARE WAS ONLY 17 THE US IS THE WORLD'S LARGEST EXPORTER MR HEINEMANN SAYS ADDING THAT AMERICA'S 200 BILLION INCREASE IN EXPORTS SINCE 1987 IS LARGER THAN TOTAL EXPORTS FROM ALL BUT FIVE OTHER COUNTRIES IN THE WORLD IN RECENT MONTHS A STUDY BY GOLDMAN SACHS & CO CAUTIONS WEAK ECONOMIC CONDITIONS AMONG US TRADE PARTNERS HAVE SLOWED EXPORT GROWTH THE REPORT GOES ON TO OBSERVE THAT THE US TRADE DEFICIT HAS WIDENED AS THE US HAS EMERGED FROM RECESSION BEFORE MOST OTHER NATIONS IN SUCH A SITUATION IMPORTS TEND TO EXPAND AS DOMESTIC ECONOMIC ACTIVITY RISES WHILE EXPORTS SUFFER FROM WEAK DEMAND ABROAD IN LIGHT OF AMERICA'S IMPROVED COMPETITIVENESS HOWEVER THIS WIDENING OF THE TRADE DEFICIT SEEMS LIKELY TO BE LIMITED IT SHOULD END WITH A PICKUP IN ECONOMIC ACTIVITY ABROAD WHICH THE GOLDMAN SACHS STUDY EXPECTS WILL OCCUR IN 1994 A SIMILAR FORECAST COMES FROM COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH WHICH CONSTRUCTS LEADING ECONOMIC INDICATORS FOR 10 MAJOR COUNTRIES ABROAD THESE INDICATORS BY AND LARGE HAVE BEEN ON THE RISE IN RECENT MONTHS ACCORDINGLY THE COLUMBIA RESEARCH ORGANIZATION PREDICTS THAT A GLOBAL RECOVERY IS IMMINENT AND THIS SHOULD HELP US EXPORTS IN THE YEAR AHEAD A MORE COMPETITIVE US ECONOMY MAY SEEM COLD COMFORT FOR AMERICANS WHOSE JOBS HAVE RECENTLY DISAPPEARED OR WHOSE PAYCHECKS BUY LESS THAN A FEW YEARS AGO BUT IT SURELY BEATS THE ALTERNATIVE OF AN INCREASINGLY UNCOMPETITIVE ECONOMY IN AN INCREASINGLY INTERCONNECTED COMPETITIVE WORLD 9309130063 930913 WHO'S NEWS BRIEF ALDEN ELECTRONICS INC RECORDING EQUIPMENT MAKER DISMISSES INVESTMENT ADVISER ALDEN ELECTRONICS INC A MAKER OF WEATHER AND UNDERSEA RECORDING EQUIPMENT SAID IT TERMINATED THE SERVICES OF BIGELOW CO AN INVESTMENT ADVISER IT HIRED IN JANUARY TO FIND BUYERS FOR ALDEN AFTER NO SUBSTANTIAL PURCHASE OFFERS WERE MADE WHILE ALDEN SAYS IT WILL CONTINUE TO EXPLORE DIVESTITURE OPTIONS IT INTENDS TO MOVE FORWARD WITH RESTRUCTURING EFFORTS THE WESTBOROUGH MASS COMPANY ALSO SAID IT HAS RECEIVED NOTICE OF RETIREMENT FROM JOSEPH H GIROUARD CHAIRMAN OF THE BOARD CHIEF EXECUTIVE OFFICER AND PRESIDENT WHO TOOK A LEAVE OF ABSENSE IN JUNE FOR HEALTH REASONS ALSO RETIRING IS S CHARLES SVIOKLA TREASURER AND CLERK THE RETIREMENTS WERE EFFECTIVE SEPT 9 THOUGH BOTH MEN WILL REMAIN WITH THE COMPANY UNTIL DEC 31 TO HELP WITH TRANSITION MATTERS JOHN A NUBER VICE PRESIDENT OF ENGINEERING WAS ELECTED ACTING PRESIDENT ROBERT J WENTWORTH SENIOR CONTROLLER WAS ELECTED TREASURER AND CLERK 9309130062 930913 BUSINESS BRIEF NATIONAL FOODS LTD STAKE IN RIDLEY TO BE SOLD FOR TOTAL OF 661 MILLION NATIONAL FOODS LTD AN AUSTRALIAN FOODPRODUCTS CONCERN SAID FRIDAY IT AGREED TO SELL ITS 957 MILLION SHARES IN RIDLEY CORP A STOCKFEED AND SALTREFINING CONCERN FOR ABOUT 101 MILLION AUSTRALIAN DOLLARS US661 MILLION NATIONAL FOODS SAID IT ENTERED AN AGREEMENT WITH BROKERAGE CONCERNS SBC DOMINGUEZ BARRY SECURITIES LTD AND ANZ MCCAUGHAN SECURITIES LTD TO SELL ITS SHARES IN RIDLEY AT A106 A SHARE THE SHARES WILL BE PLACED WITH SBC DOMINGUEZ AND ANZ MCCAUGHAN'S INSTITUTIONAL AND RETAIL CLIENTS THERE ALSO WILL BE A PRIORITY OFFERING OF 18 MILLION RIDLEY SHARES TO SHAREHOLDERS IN NATIONAL FOODS NATIONAL FOODS SAID IT WILL USE THE MONEY FROM THE SALE TO REDUCE DEBT AND REINVEST IN CORE BUSINESSES SOME OF THE MONEY WILL GO TO PREVIOUSLY ANNOUNCED PLANS TO BUY A MILKPROCESSING CONCERN UNITED DAIRIES LTD GRAHAM REANEY NATIONAL FOODS' MANAGING DIRECTOR SAID THAT ALTHOUGH THE COMPANY WAS HAPPY WITH ITS RIDLEY HOLDING IT CAN ENHANCE RETURNS BY REDEPLOYING THE MONEY INTO CORE BUSINESSES 9309130061 930913 SOLAR FINANCIAL AUDITOR RESIGNS FINANCE CHIEF IS ON TEMPORARY LEAVE MIAMI SOLAR FINANCIAL SERVICES INC SAID ITS INDEPENDENT AUDITOR RESIGNED AND ITS CHIEF FINANCIAL OFFICER LAURANCE B HANKIN TOOK A TEMPORARY LEAVE OF ABSENCE AND STEPPED DOWN AS DIRECTOR SOLAR WHICH SELLS AND FINANCES USED AUTOS SAID THE AUDITOR BDO SEIDMAN HAD TOLD THE COMPANY IT WOULD BE UNABLE TO COMPLETE ITS AUDIT FOR THE FISCAL YEAR ENDED MAY 31 BECAUSE OF SOLAR'S INTERNAL CONTROL ENVIRONMENT SEIDMAN WAS THE THIRD ACCOUNTING FIRM USED IN THE PAST YEAR BY SOLAR DAVID L PAVSNER SOLAR'S PRESIDENT AND CHIEF EXECUTIVE SAID MR HANKIN'S DEPARTURE WAS RELATED TO HEALTH PROBLEMS HE ADDED THAT THOSE PROBLEMS MAY HAVE CONTRIBUTED TO DISAGREEMENTS WITH BOTH SEIDMAN AND SOLAR'S PREVIOUS AUDITOR BERKOWITZ DICK & POLLACK PRICE WATERHOUSE HAD BEEN SOLAR'S AUDITOR UNTIL MARCH ACCORDING TO FEDERAL FILINGS MR PAVSNER SAID SOLAR AND PRICE WATERHOUSE PARTED COMPANY BECAUSE OF THE LATTER'S FEES MR HANKIN WASN'T AVAILABLE FOR COMMENT SEIDMAN BASED IN NEW YORK DIDN'T RETURN TELEPHONE CALLS OFFICIALS AT BERKOWITZ AND PRICE WATERHOUSE BOTH IN MIAMI DECLINED COMMENT SOLAR SAID SEIDMAN'S RESIGNATION WOULD DELAY THE FILING OF ITS ANNUAL REPORT ORIGINALLY SCHEDULED FOR SEPT 13 THE COMPANY ADDED IT IS NOW INTERVIEWING ACCOUNTING FIRMS TO REPLACE SEIDMAN SOLAR'S STOCK WAS HALTED FOR TRADING FOR MOST OF FRIDAY IT CLOSED AT 4375 A SHARE OFF 125 CENTS IN OVERTHECOUNTER TRADING 9309130060 930913 BUSINESS BRIEF PIONEER ELECTRONIC CORP DIVIDEND IS PLANNED DESPITE FORECAST OF FALLOFF IN RESULTS JAPAN'S PIONEER ELECTRONIC CORP SAID IT WILL MAINTAIN A DIVIDEND OF 125 YEN 12 CENTS PER SHARE FOR ITS FISCAL FIRST HALF ENDING SEPT 30 A SPOKESMAN SAID THE ELECTRONICS MAKER'S POLICY IS TO MAINTAIN A STABLE DIVIDEND EVEN AS PROFIT FLUCTUATES FOR THE HALF PIONEER HAS FORECAST PRETAX PROFIT OF 13 BILLION YEN 123 MILLION AND NET PROFIT OF 700 MILLION YEN EACH DOWN 83 FROM YEAREARLIER 75 BILLION YEN AND FOUR BILLION YEN RESPECTIVELY SALES ARE SEEN TO BE 179 BILLION YEN OFF 58 FROM A YEAREARLIER 190 BILLION YEN PIONEER AND OTHER EXPORTORIENTED ELECTRONICS MAKERS ARE SEEING SHARP DECLINES IN PROFIT WHICH THEY ATTRIBUTE TO UNFAVORABLE EXCHANGE RATES AND TO SLUGGISH DEMAND MANY LARGE JAPANESE COMPANIES FACING SUCH REDUCED MARGINS HAVE SAID THEY PLAN TO CUT DIVIDENDS 9309130059 930913 BUSINESS BRIEF SINGAPORE AIRLINES CARRIER US CONCERN SET PLANS FOR AIRCRAFT LEASING IN A PRELUDE TO ITS ENTRY INTO THE AIRCRAFT LEASING BUSINESS SINGAPORE AIRLINES ANNOUNCED IT HAS PACKAGED AN OPERATING LEASE FOR CHINA SOUTHERN AIRLINES THE SINGAPOREBASED CONCERN DECLINED TO GIVE THE VALUE OF THE TRANSACTION BUT SAID IT AND SEATTLE COMPANY BOULLIOUN AVIATION SERVICES INC HAVE BOUGHT A ONEYEAROLD BOEING 767300ER FROM CANADIAN AIRLINES INTERNATIONAL LTD BOULLION IS AN INTERNATIONAL AIRCRAFT LEASING FINANCE AND MARKETING COMPANY IN A STATEMENT THE AIRLINE ALSO SAID THE TWO PLAN TO USE THIS TRANSACTION AS A SPRINGBOARD TO SET UP LATER THIS YEAR A JOINTLY OWNED OPERATING LEASE COMPANY BASED IN SINGAPORE RELEASING FEW OTHER DETAILS SIA ADDED THAT THE VENTURE WILL SEEK TO TAP THE LARGE WORLDWIDE POTENTIAL FOR OPERATING LEASE FINANCE BUT WILL FOCUS IN PARTICULAR ON THE STRONG ASIAN MARKET 9309130058 930913 LEISURE & ARTS BOOKSHELF THROUGH THE COSMOLOGICAL LOOKINGGLASS BY JIM HOLT ALTHOUGH STEPHEN HAWKING HAS NEVER WON A NOBEL PRIZE HE HAS MANAGED TO GET INTO THE GUINNESS BOOK OF RECORDS THANKS TO THE BOFFO SALES OF A BRIEF HISTORY OF TIME SURELY THE ONLY PHYSICS BOOK EVER MADE INTO A MOVIE AS A FOLLOWUP HE HAS NOW GIVEN US BLACK HOLES AND BABY UNIVERSES BANTAM 182 PAGES 2195 AN ASSORTMENT OF ESSAYS COMPOSED FOR DIVERSE AUDIENCES BETWEEN 1976 AND 1992 LIKE A BRIEF HISTORY THESE PIECES ARE SUCCINCT ILLUMINATING AND CONSIDERING THE INHERENTLY BAFFLING NATURE OF CONTEMPORARY COSMOLOGY REMARKABLY EASY TO READ SOME OF MR HAWKING'S THEMES GO BEYOND PHYSICS INTO METAPHYSICS DOES IT MAKE SENSE TO ASK WHETHER OUR SCIENTIFIC THEORIES CORRESPOND TO REALITY NOT REALLY HE ARGUES SINCE WE DO NOT KNOW WHAT REALITY IS INDEPENDENT OF A THEORY IS FREE WILL POSSIBLE IN A UNIVERSE WHERE EVERYTHING IS DETERMINED BY A FUNDAMENTAL SET OF PHYSICAL LAWS YES HE CONTENDS BECAUSE THE LOGIC OF THESE LAWS RENDERS THEM USELESS FOR PREDICTING HUMAN ACTION SEVERAL ESSAYS ARE AUTOBIOGRAPHICAL IN MY EXPERIENCE WITH ALS MR HAWKING TELLS HOW THE DISCOVERY THAT HE HAD LOU GEHRIG'S DISEASE AN INCURABLE AFFLICTION OF THE NERVOUS SYSTEM THAT HAS LEFT HIM WHEELCHAIRBOUND AND ABLE TO SPEAK ONLY THROUGH A COMPUTERIZED VOICE SYNTHESIZER SHOCKED HIM OUT OF HIS YOUTHFUL TORPOR AND IN TIME INTO CAMBRIDGE'S LUCASIAN CHAIR OF MATHEMATICS FROM AN AMUSING INTERVIEW HE GAVE LAST CHRISTMAS ON BBC RADIO'S DESERT ISLAND DISCS WE LEARN THAT HIS LOVE FOR MOZART'S REQUIEM IS EXCEEDED PERHAPS ONLY BY HIS PASSION FOR CREME BRULEE BUT IT IS MR HAWKING'S MUSINGS ON THE ORIGIN AND FATE OF THE COSMOS AND THE PROGRESS OF PHYSICS IN MAKING SENSE OF IT ALL THAT ARE OF PARAMOUNT INTEREST EVEN IF MR HAWKING IS HARDLY THE AVATAR OF COSMIC GENIUS AS EXCITABLE JOURNALISTS LIKE TO SUGGEST A SERIES OF THEORETICAL COUPS HAVE PLACED HIM COMFORTABLY WITHIN THE TOP TIER OF LIVING COSMOLOGISTS IN THE '60S HE PROVED WITH ROGER PENROSE THAT IF EINSTEIN'S THEORY OF RELATIVITY IS TRUE THE UNIVERSE MUST HAVE BEGUN AS A SINGULARITY A MATHEMATICAL POINT OF INFINITE DENSITY A DECADE OR SO LATER HE DID CALCULATIONS SHOWING THAT A BLACK HOLE IS NOT COMPLETELY BLACK SINCE QUANTUM UNCERTAINTY ALLOWS A THIN STREAM OF PARTICLES TO CHEAT ITS GRAVITATIONAL FIELD AND ESCAPE HE JUSTLY DESCRIBES THIS AS THE FIRST NONTRIVIAL RESULT OF COMBINING EINSTEIN'S GENERAL RELATIVITY WITH THE QUANTUM PRINCIPLE IN THE LAST DECADE MR HAWKING HAS GONE ONE BETTER BY APPLYING QUANTUM THEORY ORIGINALLY CONCOCTED TO ACCOUNT FOR THE WEIRD BEHAVIOR OF TINY SYSTEMS LIKE THE HYDROGEN ATOM TO THE COSMOS AS A WHOLE HIS APPROACH CALLED QUANTUM COSMOLOGY INVOLVES NOTIONS LIKE IMAGINARY TIME AND SUMMING OVER HISTORIES OF THE UNIVERSE THAT ARE AS ALLURING AS THEY ARE ABSTRUSE THE REAL NETTLE TO BE GRASPED IS THE BIG BANG IF THE UNIVERSE AROSE FROM A BIG BANG SINGULARITY THEN THE LAWS OF PHYSICS BEING UNABLE TO COPE WITH INFINITIES BREAK DOWN WOULDN'T SOME EXTERNAL AGENCY A PRIME MOVER THEN HAVE TO BE INVOKED TO EXPLAIN HOW THE COSMOS BEGAN NOT AT ALL SAYS MR HAWKING WITH CONSIDERABLE INGENUITY HE SIMPLY GETS RID OF THE BEGINNING OF THE UNIVERSE BY MERGING IT WITH THE END THROUGH THE ARTIFICE OF IMAGINARY TIME THE BIG BANG AND THE BIG CRUNCH ARE MATHEMATICALLY JOINED TO MAKE AN ORDINARY POINT OF SPACE TIME THE RESULT A COSMOS THAT LIKE A CIRCLE IS FINITE BUT HAS NO BOUNDARIES SUCH A CLOSED UNIVERSE IS COMPLETELY DETERMINED BY THE LAWS OF PHYSICS THERE IS NO NEED FOR A CREATOR TO GET IT UNDERWAY BY WILLING ITS INITIAL STATE WHICH IS JUST FINE WITH MR HAWKING STILL HE DOES ADMIT THAT EVEN IF QUANTUM EQUATIONS ACCOUNT FOR HOW THE UNIVERSE BEGAN THEY SHED NO LIGHT ON WHY IT BOTHERS TO EXIST IF YOU LIKE HE SAYS YOU CAN DEFINE GOD TO BE THE ANSWER TO THAT QUESTION WHAT HE FAILS TO ACKNOWLEDGE IS THE QUESTIONBEGGING CHARACTER OF HIS NOBOUNDARY CONDITION GETTING RID OF AN ARBITRARY PRIME MOVER MEANS ADOPTING THE EQUALLY ARBITRARY ASSUMPTION THAT THE UNIVERSE MUST BE SELFCONTAINED FINITE IN BOTH SPACE AND TIME HIS PREFERENCE FOR COSMIC FINITUDE SHARED BY EINSTEIN CANNOT BE JUSTIFIED ON PURELY SCIENTIFIC GROUNDS AS DAVID LINDLEY POINTS OUT IN HIS SUPERBLY WRITTEN THE END OF PHYSICS THE MYTH OF A UNIFIED THEORY BASIC 275 PAGES 25 FOR ALL ITS TECHNICAL SOPHISTICATION QUANTUM COSMOLOGY IS GROUNDED IN WHAT IS ESSENTIALLY AN AESTHETIC CONVICTION MR LINDLEY AN ASTROPHYSICIST AND AN EDITOR OF SCIENCE MAGAZINE DOES A THOROUGH JOB OF DEFLATING THE CLAIM THAT PHYSICS IS ON THE VERGE OF A THEORY OF EVERYTHING WHILE AT THE SAME TIME ADMIRABLY EXPLAINING THE ESOTERIC IDEAS INVOLVED IN THE QUEST SUPERSYMMETRY GRAVITONS COSMIC INFLATION WHAT GOOD HE ASKS IS A MATHEMATICALLY ELEGANT FRAMEWORK LIKE STRING THEORY WHICH UNIFIES ALL THE FORCES IN THE UNIVERSE BY SUPPOSING SPACE TO BE 10DIMENSIONAL IF IT YIELDS NOT A SINGLE PREDICTION THAT CAN BE EXPERIMENTALLY TESTED THIS SORT OF SKEPTICISM CAN BE TAKEN TOO FAR STILL THOSE WHO ARE ANNOYED BY THE OCCASIONAL ERUPTIONS OF HUBRIS IN MR HAWKING'S WRITINGS WILL FIND THIS BOOK AN EXCELLENT ANTIDOTE 9309130057 930913 BUSINESS BRIEF DILLINGER HUETTE SAARSTAHL AG CREDITORS VOTE UNANIMOUSLY TO KEEP STEEL UNIT RUNNING THE CREDITORS OF GERMAN STEELMAKER SAARSTAHL AG WHICH IS IN BANKRUPTCY PROCEEINGS THURSDAY VOTED UNANIMOUSLY IN FAVOR OF KEEPING THE COMPANY RUNNING ITS BANKRUPTCY ADMINISTRATORS SAID ADMINISTRATORS JEAN LANG AND HANS RINGWALD TOLD JOURNALISTS THAT ALTHOUGH SAARSTAHL WOULDN'T BE DISMANTLED TO SETTLE OUTSTANDING LIABILITIES OF SOME SEVEN BILLION DEUTSCHE MARKS 438 BILLION LAYOFFS AT THE PLANT ITS SUBSIDIARIES AND ITS DILLINGER HUETTENWERK SISTER COMPANY WOULD TOTAL AROUND 5000 JOBS LANG SAID EFFORTS TO SECURE LIQUIDITY FINANCING FROM A BANKING CONSORTIUM TO CONTINUE RUNNING SAARSTAHL HAD SO FAR PROVEN UNSUCCESSFUL RINGWALD SAID THE STATE OF SAARLAND WHICH OWNS 275 OF SAARSTAHL'S PARENT HOLDING DILLINGER HUETTE SAARSTAHL AG HAS NEARLY REACHED AGREEMENT WITH FRENCH STEEL GROUP USINOR SACILOR AG WHICH OWNS 70 OVER THE FRENCH COMPANY'S CONTINUED INVOLVEMENT IN SAARSTAHL THE REMAINING 25 OF DHS IS OWNED BY LUXEMBOURG'S ARBED SA 9309130056 930913 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN THE OWNER OF THE CHINESE SHIP THAT WAS SEARCHED AT US INSISTENCE FOR CHEMICAL WEAPONS COMPONENTS SAID IT MAY GO TO COURT TO COLLECT NEARLY 13 MILLION IN DAMAGES FROM WASHINGTON CHINA HAS SHARPLY CRITICIZED THE US FOR FAILING TO COMPENSATE THE OWNERS OF THE YIN HE FREIGHTER AFTER A 10DAY INVESTIGATION IN SAUDI ARABIA FAILED TO UNCOVER CHEMICALS THAT THE US BELIEVED WERE BOUND FOR IRAN A COMPANY OFFICIAL DISMISSED SUGGESTIONS THAT THE SUSPECTED CHEMICALS WERE DUMPED OVERBOARD BEFORE THE SEARCH OR UNLOADED EARLIER THE DAMAGE FIGURE INCLUDES NEARLY 3 MILLION FOR DIRECT LOSSES SUCH AS CANCELLATION OF PORT CALLS AND ADDITIONAL FOOD AND WATER EXPENSES CHINA OCEAN SHIPPING GROUP CO SAID THE REMAINDER IS FOR DAMAGE TO REPUTATION WASHINGTON MAINTAINS THAT IT ISN'T LIABLE FOR LOSSES INCURRED BY THE CHINESE VESSEL A CLAIM BEIJING DISPUTES TEN MAJOR JAPANESE ELECTRIC UTILITIES AND THREE GAS SUPPLIERS ANNOUNCED 251 BILLION IN RATE CUTS TO PASS ON THE BENEFITS OF THE STRONG YEN TO CONSUMERS THE REDUCTIONS TAKE EFFECT IN NOVEMBER TOKYO ELECTRIC POWER CO SAID ITS RATE CUT WILL AMOUNT TO ABOUT 94 CENTS TO 104 A MONTH FOR A TYPICAL FAMILY THE OTHER ELECTRIC UTILITIES' CUTS RANGE FROM 47 CENTS TO 142 A MONTH THE GAS SUPPLIERS' CUTS AMOUNT TO 123 TO 142 A MONTH FOR THE AVERAGE HOUSEHOLD INDONESIA WHICH SELLS MORE THAN 642 MILLION IN GOODS TO THE US EACH YEAR THREATENED TO RETALIATE IF WASHINGTON REVOKES CERTAIN TRADE PRIVILEGES ON HUMANRIGHTS GROUNDS SAYING THAT INDONESIA WOULD RATHER LOSE THE PRIVILEGES THAN ITS SELFRESPECT A LABOR OFFICIAL NOTED THAT A SIMILAR THREAT FROM THE NETHERLANDS CONCERNING ALLEGED HUMAN RIGHTS VIOLATIONS LED JAKARTA TO REJECT 93 MILLION IN ECONOMIC AID HE SAID LIFTING THE US PRIVILEGES WOULD REDUCE JOB OPPORTUNITIES AND WORSEN WORKING CONDITIONS IN INDONESIA US COMPANIES APPEAR HESITANT TO RUSH BACK INTO SOUTH AFRICA DESPITE A PLEDGE FROM AFRICAN NATIONAL CONGRESS LEADER NELSON MANDELA TO SEEK AN END TO ECONOMIC SANCTIONS AGAINST THE COUNTRY BUSINESSES REMAIN WARY OF THE WEAK ECONOMY AND POLITICAL UNCERTAINTY AND A NUMBER OF MAJOR CORPORATIONS THAT PULLED OUT INCLUDING GENERAL ELECTRIC CO AND XEROX CORP ARE COOL ON THE QUESTION OF RETURNING MR MANDELA HAS SAID HE WILL ENDORSE THE LIFTING OF SANCTIONS AFTER PARLIAMENT APPROVES A MULTIRACIAL COUNCIL TO RUN THE NATION UNTIL THE APRIL 27 ELECTIONS SOME 135 US COMPANIES HAVE DIRECT INVESTMENTS OR EMPLOYEES IN SOUTH AFRICA COLLEGE INSTRUCTORS IN NIGERIA ENDED A FOURMONTH STRIKE THAT SHUT DOWN THE COUNTRY'S UNIVERSITIES AND KEPT ABOUT 100000 STUDENTS OUT OF CLASS LEADERS OF UNIONS REPRESENTING 23000 INSTRUCTORS VOTED TO ACCEPT A GOVERNMENT OFFER TO RAISE FUNDING OF HIGHER EDUCATION BY 45 MILLION THE STRIKE BEGAN MAY 3 IN PROTEST OF A SHARP DECLINE IN EDUCATION FUNDING AND STANDARDS DURING THE EIGHTYEAR RULE OF GEN IBRAHIM BABANGIDA WHO STEPPED DOWN IN AUGUST CRITICS OF THE DICTATOR ACCUSED HIM OF RESISTING NEGOTIATIONS SO THAT UNIVERSITIES WOULD REMAIN CLOSED STEMMING POTENTIAL STUDENT PROTESTS AGAINST HIS SCRAPPING A PLAN TO RETURN NIGERIA TO DEMOCRACY SOUTH KOREA WILL ALLOW TRADERS AND REINSURERS TO SETTLE IMPORT EXPORT AND REINSURANCE CONTRACTS OF AS MUCH AS 100000 IN THE LOCAL CURRENCY EFFECTIVE OCT 1 THE GOVERNMENT ALSO WILL LET FOREIGNERS IN SOUTH KOREA OPEN ACCOUNTS AT 82 FOREIGN EXCHANGE BANKS THAT ALLOW THEM TO DEPOSIT FOREIGN CURRENCY AND WITHDRAW THEIR MONEY IN WON AND VICE VERSA CURRENTLY ONLY TRADE SETTLEMENTS WORTH LESS THAN TWO MILLION WON 2500 CAN BE CLEARED IN WON WIDER USE OF THE CURRENCY IN CONTRACT SETTLEMENTS SHOULD HELP LOCAL FIRMS MINIMIZE EXPOSURE TO CURRENCY RISK AND HELP THE INTERNATIONAL BUSINESS OF LOCAL FINANCIAL INSTITUTIONS GERMANY'S FOURMILLIONMEMBER IG METALL INDUSTRIAL UNION WILL FORGO BIG RAISES IN 1994 AND LIMIT ITS WAGE DEMANDS TO COMPENSATION FOR INFLATION AND PRODUCTIVITY GAINS THE UNION'S UNUSUALLY MODEST REQUEST SIGNALED THAT ORGANIZED LABOR IN GERMANY FACES ITS WEAKEST BARGAINING POSITION SINCE UNIFICATION MOST UNIONS ACKNOWLEDGE THAT IT WILL BE IMPOSSIBLE FOR WAGE INCREASES TO MATCH NEXT YEAR'S INFLATION RATE WHICH SHOULD SLOW TO ABOUT 3 OR 35 LAST YEAR EVEN THE MOST POWERFUL UNIONS SETTLED FOR 3 RAISES WELL BELOW WESTERN GERMANY'S 42 INFLATION RATE LAVISH CONTRACTS FOLLOWING UNIFICATION HAVE SWELLED GERMAN LABOR COSTS MANY EMPLOYERS ARE URGING WORKERS TO ACCEPT A PAY FREEZE NEXT YEAR AND GOVERNMENT OFFICIALS HAVE JOINED THEIR CALLS IG METALL REPRESENTS WORKERS IN A BEVY OF INDUSTRIES THAT HAVE BEEN HIT HARD BY GERMANY'S RECESSION AUTOS SHIPBUILDING STEEL MACHINE TOOLS AND ELECTRONICS CHINA REJECTED US CHARGES THAT IT ENGAGED IN THE ILLEGAL TRADE OF RHINOCEROS HORN AND TIGER PRODUCTS THE ALLEGATIONS MADE BY INTERIOR SECRETARY BRUCE BABBITT LAST WEEK PAVE THE WAY FOR POSSIBLE TRADE SANCTIONS LEFTIST REBEL ATTACKS ON COLOMBIA'S OIL INFRASTRUCTURE HAVE CUT CRUDE OIL OUTPUT 10 THIS YEAR 9309130055 930913 MCI CABLE CUT IN OHIO DISRUPTED CALLS FRIDAY NEW YORK MCI COMMUNICATIONS CORP SAID A HIGHWAY ROAD CREW IN OHIO CUT A MAJOR COMMUNICATIONS CABLE THERE ON FRIDAY AND KNOCKED OUT MOST OF MCI'S EASTWEST SERVICE FOR THE DAY AN MCI SPOKESMAN SAID MILLIONS OF RESIDENTIAL AND BUSINESS CUSTOMERS WERE UNABLE TO MAKE COASTTOCOAST CALLS DURING THE SEVENHOUR DISRUPTION A CREW BORING HOLES FOR HIGHWAY ROAD SIGNS CUT ONE OF THE COMPANY'S HIGHCAPACITY FIBEROPTIC CABLES AT 845 AM EDT THE CABLE WASN'T REPAIRED UNTIL ABOUT 4 PM CUSTOMERS CALLING FROM NEW YORK TO DETROIT COULD BE AFFECTED ALONG WITH CUSTOMERS CALLING FROM SAN FRANCISCO TO NEW YORK THE SPOKESMAN SAID SOME TRAFFIC WAS REROUTED AROUND THE CUT ARTERY BY MCI'S NETWORK COMPUTERS BUT THE SYSTEM JAMMED AS A LARGE VOLUME OF CALLERS REPEATEDLY DIALED HE SAID THE SPOKESMAN FOR THE PROVIDER OF LONGDISTANCE COMMUNICATIONS SERVICES SAID THAT THE CABLE ROUTE WAS CLEARLY MARKED WITH SIGNS TO NOTIFY MCI BEFORE DIGGING BUT THE COMPANY DIDN'T RECEIVE ANY CALLS FROM THE ROAD CREW THE ACCIDENT OCCURRED IN EVERETT OHIO WHICH IS BETWEEN CLEVELAND AND AKRON OHIO 9309130054 930913 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CAMPBELL SOUP CO 100 MILLION OF NOTES DUE SEPT 15 2003 PRICED AS 5625S AT 99531 TO YIELD 5687 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE SEPT 17 1998 PRICED AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF NINE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE SEPT 15 2003 PRICED AT PAR TO YIELD 578 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC HARSCO CORP 150 MILLION OF NOTES DUE SEPT 15 2003 PRICED AS 6S AT 99313 TO YIELD 6093 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC FEDERAL HOME LOAN MORTGAGE CORP 420 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1605 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS BANCO CREDIBANCO SA BRAZIL 60 MILLION OF 875 EUROBONDS DUE SEPT 23 1996 AT ISSUE AND REOFFER PRICE 9975 VIA INTERNATIONALE NEDERLANDEN BANK NV BONDS YIELD 885 A SPREAD OF 473 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES ONE POINT INTEREST PAYABLE SEMIANNUALLY BANCO SAFRA SA BRAZIL 100 MILLION OF 8 EUROBONDS DUE SEPT 17 1996 AT ISSUE AND REOFFER PRICE PAR VIA BEAR STEARNS INTERNATIONAL LTD BONDS YIELD 8 A MARGIN OF 386 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE POINT INTEREST PAYABLE SEMIANNUALLY FORD CREDIT CANADA LTD US PARENT 150 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE OCT 9 1998 AT ISSUE PRICE 10155 VIA WOOD GUNDY INC REOFFERED AT PAR TO YIELD 7 A MARGIN OF 75 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR FORD MOTOR CREDIT CO FEES 1875 POINTS R&I BANK OF WESTERN AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 65 EUROBONDS DUE OCT 29 1998 AT ISSUE PRICE 10145 VIA HAMBROS BANK LTD BONDS YIELD 6603 AT COMANAGERS' BREAKEVEN PRICE OF 99575 A MARGIN OF 33 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND FEES TWO POINTS LESS 0125 FOR LEAD MANAGER URBAN MORTGAGE BANK OF SWEDEN SWEDEN 100 MILLION OF FLOATINGRATE NOTES DUE OCTOBER 1998 AT ISSUE AND REOFFER PRICE 9965 VIA CHEMICAL INVESTMENT BANK LTD INTEREST PAYABLE SEMIANNUALLY AT 375 BASIS POINTS OVER SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS FEES 025 POINT 9309130053 930913 POLITICS & POLICY CONSERVATIVE SEN WALLOP WON'T SEEK A FOURTH TERM WASHINGTON SEN MALCOLM WALLOP A WYOMING REPUBLICAN WHO HAS BEEN AMONG THE SENATE'S MOST OUTSPOKEN CONSERVATIVES ANNOUNCED HE WON'T SEEK A FOURTH TERM NEXT YEAR MR WALLOP WHO MAY RUN FOR GOVERNOR NEXT YEAR SAID HE WAS RETIRING OUT OF RESPECT FOR HIS CONSTITUENTS' EXPRESSED DESIRE TO LIMIT TERMS OF OFFICEHOLDERS A WYOMING TERMLIMITATION STATUTE APPROVED LAST FALL IF UPHELD AS CONSTITUTIONAL WOULD LIMIT SENATORS TO TWO SIXYEAR TERMS BUT IT WOULDN'T APPLY RETROACTIVELY TO MR WALLOP A ONETIME RANCHER WHO ALREADY HAS OVERSTAYED A TWOTERM LIMIT HE DECLARED FOR HIMSELF WHEN HE FIRST RAN FOR THE SENATE IN 1976 THE 60YEAROLD SENATOR IS RANKING REPUBLICAN ON THE SENATE ENERGY AND NATURAL RESOURCES COMMITTEE WHERE HE HAS BATTLED ENVIRONMENTALISTS AND TOUTED THE MERITS OF NUCLEAR POWER MR WALLOP ALSO HAS BEEN AN ARDENT DEFENDER OF THE STRATEGIC DEFENSE INITIATIVE AND A PROPONENT OF CUTTING CAPITALGAINS TAXES POTENTIAL DEMOCRATIC CANDIDATES FOR THE WYOMING SENATE SEAT INCLUDE GOV MIKE SULLIVAN AND SECRETARY OF STATE KATHY KARPIN REPUBLICAN PROSPECTS INCLUDE FORMER BUSH ADMINISTRATION DEFENSE SECRETARY DICK CHENEY OR MORE LIKELY HIS WIFE LYNNE FORMER CHAIRWOMAN OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES 9309130052 930913 INTERNATIONAL FIRST FOREIGNOWNED BANK OPENS ITS DOORS IN RUSSIA SPECIAL TO THE WALL STREET JOURNAL ST PETERSBURG RUSSIA THE FIRST FULLSERVICE BANK OWNED BY FOREIGNERS OPENED FOR BUSINESS HERE FRIDAY AND PREDICTED IT WOULD ATTRACT MORE EUROPEAN INVESTMENT JEANBAPTISTE BRANDEHO DEPUTY GENERAL MANAGER OF BNPDRESDNER RUSSIA SAID HE KNEW OF AT LEAST 50 FRENCH COMPANIES THAT WOULD SEE THE OPENING AS A SIGNAL TO EXPAND OPERATIONS IN RUSSIA THEY'VE ONLY BEEN WAITING FOR THE OPENING OF A WESTERN BANK MR BRANDEHO SAID BNPDRESDNER IS A JOINT SUBSIDIARY OF THE BANQUE NATIONALE DE PARIS AND DRESDNER BANK AG EACH PUT UP 5 MILLION TO FOUND THE RUSSIAN BRANCH OTHER WESTERN BANKS HAVE OPENED OFFICES AND SENT REPRESENTATIVES TO RUSSIA BUT BNPDRESDNER IS THE FIRST WITHOUT A RUSSIAN PARTNER SAID MAYOR ANATOLY SOBCHAK OF ST PETERSBURG THE COUNTRY'S BANKING LAWS HAVE CHANGED FREQUENTLY IN THE PAST TWO YEARS AND NOW ALLOW WHOLLY FOREIGNOWNED INSTITUTIONS BUT NEW LEGISLATION UNDER CONSIDERATION COULD RESTRICT THE TYPE OF ACCOUNTS RUSSIANS CAN OPEN 9309130051 930913 US CHARGES THREE MEN WITH BID TO SELL FAKE BOND COLUMBIA SC THE US ATTORNEY'S OFFICE SAID TWO JAPANESE MEN AND ONE AMERICAN WERE ARRESTED FOR ALLEGEDLY TRYING TO SELL A 500 MILLION FAKE JAPANESE BOND MOTOKICHI MUTO 66 YEARS OLD OF JAPAN AND YUJI HITOMI 45 AND DOUGLAS T WRIGHT OF LAS VEGAS NEV WERE ARRESTED SEPT 2 AND CHARGED WITH WIRE FRAUD AND CONSPIRACY THE US ATTORNEY'S OFFICE IN SOUTH CAROLINA SAID THE MEN WERE ARRAIGNED ON CHARGES THAT THEY ATTEMPTED TO SELL THE FORGED BOND TO AN UNDERCOVER FEDERAL AGENT IN COLUMBIA THE JAPANESE GOVERNMENT EARLIER THIS YEAR ISSUED A WARNING ABOUT THE RISE IN ATTEMPTED SALES OF FORGED CERTIFICATES FOR GOVERNMENT BONDS THE US ATTORNEY'S OFFICE SAID MR WRIGHT WAS RELEASED ON A 25000 BOND BUT THAT THE TWO OTHER MEN ARE STILL DETAINED BECAUSE OF CONCERNS THEY MAY FLEE THE COUNTRY THE MAXIMUM PENALTY EACH DEFENDANT FACES IS A 250000 FINE AND OR A FIVEYEAR PRISON TERM THE ATTORNEYS FOR MESSRS WRIGHT AND HITOMI COULDN'T BE REACHED FOR COMMENT CREIGHTON COLEMAN MR MUTO'S COUNSEL SAID HIS CLIENT CONTENDS THE BOND ISN'T A FORGERY AND THAT IF IT IS HE DIDN'T KNOW ABOUT IT 9309130050 930913 MICHAEL JACKSON IS DENIED BID TO PERFORM IN KOREA SEOUL SOUTH KOREA THE KOREAN GOVERNMENT FRIDAY REJECTED FOR THE SECOND TIME A BID BY SINGER MICHAEL JACKSON TO PERFORM IN SEOUL SAYING IT WOULD BE NEGATIVE FOR KOREAN CULTURE THE DECISION BY THE MINISTRY OF CULTURE AND SPORT CAME DESPITE PLEAS ON MR JACKSON'S BEHALF BY BLACK LEADERS IN THE US WHO WARNED THAT BANNING THE POP STAR COULD IRRITATE STRAINED RELATIONS BETWEEN KOREANAMERICAN AND AFRICANAMERICAN COMMUNITIES MR JACKSON IS APPEARING IN ASIA DURING THE FIRST LEG OF HIS DANGEROUS WORLD CONCERT TOUR KOREAN GOVERNMENT OFFICIALS SAID A JACKSON CONCERT WOULD BE INCONSISTENT WITH THE COUNTRY'S AUSTERITY BAN WHICH STRESSES TRADITIONAL VALUES AND THRIFT ALLEGATIONS OF CHILD ABUSE INVOLVING THE POP STAR DIDN'T PLAY A ROLE IN THE DECISION THEY SAID 9309130049 930913 FOREIGN EXCHANGE A YEAR LATER BRITAIN REAPS DIVIDENDS FROM ITS DECISION TO PULL OUT OF THE ERM BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE BRITISH GOVERNMENT'S YEAROLD DECISION TO PULL THE POUND OUT OF EUROPE'S EXCHANGE RATE MECHANISM IS REAPING DIVIDENDS THE WITHDRAWAL ANNOUNCEMENT LAST SEPT 16 WAS DUBBED BLACK WEDNESDAY AT THE TIME NOW HOWEVER ANALYSTS ARE CROWING ABOUT THE BRIGHT PROSPECTS FOR THE POUND AND THE INCREASINGLY HEALTHY STATE OF THE BRITISH ECONOMY LEAVING THE ERM WAS UNQUESTIONABLY A GOOD THING SAYS PAUL TURNBULL AN ECONOMIST AT SMITH NEW COURT PLC IT FREED US FROM BEING DRAGGED FURTHER DOWN BY THE CONTINENT'S RECESSION AND ALLOWED GROWTH TO BEGIN AN IMPROVING TRADE ACCOUNT RELATIVELY SLOW INFLATION AND STRONGER RETAIL SALES ALL BODE WELL FOR THE ONCEFORLORN POUND FORECASTERS EXPECT STERLING TO CONTINUE THE RECOVERY IT BEGAN ABOUT FOUR MONTHS AGO EVENTUALLY GAINING BACK ABOUT 10 OF ITS VALUE AGAINST OTHER MAJOR EUROPEAN CURRENCIES AND WHILE OTHER CURRENCIES INCLUDING THE MARK AND THE FRENCH FRANC ARE EXPECTED TO FALL ABOUT 12 AGAINST THE DOLLAR DURING THE NEXT 12 MONTHS STERLING'S DECLINE IS EXPECTED TO BE ABOUT HALF THAT THE GOVERNMENTS OF SOME CONTINENTAL EUROPEAN COUNTRIES PARTICULARLY FRANCE DENMARK AND BELGIUM ARE ALMOST CERTAINLY WONDERING IF THEY SHOULD TAKE THE SAME CUT AND RUN APPROACH AND UNCOUPLE THEIR CURRENCIES FROM THE MARK EVEN THOUGH THE SYSTEM THAT LINKS THE CURRENCIES OF THE ERM WAS LOOSENED AT THE START OF AUGUST THE OLD PATTERNS IN THE ERM WILL TAKE SOME TIME TO CHANGE AND GERMANY'S CENTRAL BANK CONTINUES TO DOMINATE UNTIL THE BUNDESBANK CUT ITS KEY INTEREST RATES BY 05 PERCENTAGE POINT LAST WEEK OTHER COUNTRIES HADN'T EASED THEIR OWN MONETARY POLICIES MOST EC COUNTRIES HAVE BEEN MEMBERS OF THE SYSTEM FOR SO LONG THAT THEY NO LONGER HAVE GOVERNMENT OFFICIALS WHO HAVE PRACTICAL EXPERIENCE IN RUNNING A TRULY INDEPENDENT MONETARY POLICY BUT THAT ISN'T THE CASE WITH BRITAIN WHICH SLASHED RATES BY FOUR PERCENTAGE POINTS IN THE FOUR MONTHS FOLLOWING THE POUND'S DEPARTURE FROM THE ERM THE POUND HAD BEEN A MEMBER OF THE ERM SINCE ONLY 1989 WHILE MOST OF THE OTHER CURRENCIES HAVE BEEN IN THE SYSTEM FOR MORE THAN A DECADE BRITAIN'S RECOVERY HAS LARGELY BEEN EXPORTLED AS ILLUSTRATED BY TRADE FIGURES RELEASED FRIDAY THEY SHOWED THAT THE COUNTRY'S TRADE DEFICIT NARROWED TO A SEASONALLY ADJUSTED 33 BILLION 51 BILLION IN THE SECOND QUARTER FROM 35 BILLION IN THE PRIOR THREE MONTHS EXPORT VOLUME EXCLUDING OIL AND SOME OTHER ERRATIC CATEGORIES ROSE 07 WHILE IMPORTS FELL 28 WHILE MOST OF THE GAINS WERE CAUSED BY THE POUND'S LOWER VALUE WHICH MAKES EXPORTS LESS EXPENSIVE AND IMPORTS MORE EXPENSIVE THE COUNTRY'S PROGRESS IN KEEPING WAGES DOWN AND BOOSTING PRODUCTIVITY ALSO PLAYED A ROLE THE IMPROVEMENT WAS PARTICULARLY NOTEWORTHY BECAUSE BRITAIN'S MAIN TRADING PARTNERS ON THE CONTINENT ARE MIRED IN RECESSION ECONOMISTS EXPECT BRITAIN'S EXPORT PERFORMANCE TO IMPROVE FURTHER ONCE THOSE COUNTRIES START TO REVIVE HOW WELL EXPORTS PERFORM WILL DEPEND TO AN EXTENT ON STERLING'S STAYING AT ABOUT ITS CURRENT LEVEL HOWEVER A SURVEY OF 106 CURRENCY FORECASTS BY CONSENSUS ECONOMICS INC PREDICTS THAT THE POUND WILL RISE TO 256 MARKS UP FROM ITS LEVEL LATE FRIDAY IN NEW YORK OF 24793 MARKS THE 256MARK LEVEL WOULD STILL BE A FAR CRY FROM THE 285MARK CENTRAL RATE THAT STERLING WAS ASSIGNED IN THE ERM BUT WOULD BE AN ALMOST 10 IMPROVEMENT FROM THE POUND'S LOW OF ABOUT 234 MARKS IN FEBRUARY THE POUND STOOD AT 15520 IN NEW YORK FRIDAY UP FROM 15490 THE DAY BEFORE AGAINST OTHER CURRENCIES THE DOLLAR WAS QUOTED AT 15975 MARKS DOWN FROM 16005 MARKS THURSDAY AND AT 10605 YEN UP FROM 10540 YEN ABOUT NOON MONDAY IN TOKYO STERLING WAS AT 15505 UNCHANGED FROM LATE FRIDAY THE DOLLAR WAS TRADING AT 10610 YEN AND AT 15965 MARKS THE POUND'S STRENGTH COULD INSPIRE KENNETH CLARKE BRITAIN'S CHANCELLOR OF THE EXCHEQUER TO CUT RATES FURTHER WHEN HE PRESENTS HIS NEW BUDGET IN NOVEMBER THE BUDGET IS LIKELY TO INCLUDE TAX INCREASES THE RECOVERY HERE SEEMS TO BE COMING TOGETHER QUITE NICELY SAYS KEITH WADE CHIEF ECONOMIST AT SCHRODER INVESTMENT MANAGEMENT LTD IN LONDON BUT AUTHORITIES DON'T WANT THE POUND TO BE TOO STRONG BECAUSE IT'S GENERALLY RECOGNIZED WE NEED A COMPETITIVE CURRENCY TO KEEP THINGS MOVING BRITISH CONSUMER PRICES INCREASED IN JULY AT AN ANNUAL PACE OF ONLY 14 THE LOWEST RATE IN MORE THAN 25 YEARS ANALYSTS EXPECT INFLATION TO REMAIN MODEST WITH A RATE OF ABOUT 17 BY YEAR'S END AS THE ECONOMY PICKS UP THOUGH SO WILL INFLATION THE RATE FOR 1994 IS EXPECTED TO BE ABOUT 36 ANY ACCELERATION IN INFLATION COULD PROVE BULLISH FOR THE POUND IF CURRENCY DEALERS BEGIN BETTING THAT THE AUTHORITIES WILL BE QUICK TO RAISE INTEREST RATES TO NIP RISING PRICES IN THE BUD 9309130048 930913 NAVY GETS LOCKHEED OFFER TO UPGRADE STEALTH PLANES CALABASAS CALIF LOCKHEED CORP SCRAMBLING TO FIND DEFENSE BUSINESS IN UNLIKELY CORNERS HAS GIVEN THE NAVY AN UNSOLICITED OFFER TO UPGRADE THE COMPANY'S F117 STEALTH FIGHTER FOR USE AS A CARRIERBASED ATTACK PLANE THE PROPOSAL DISCLOSED BY AVIATION WEEK & SPACE TECHNOLOGY MAGAZINE HAS GENERATED LITTLE ENTHUSIASM IN THE PENTAGON AND ISN'T LIKELY TO WIN MANY CONVERTS ON CAPITOL HILL EITHER DUBBED THE F117N SEAHAWK BY THE COMPANY THE PLANE WOULD DIFFER FROM THE CURRENT AIR FORCE VERSION BY BEING FITTED WITH NEW WINGS AND RADAR A SENATE SUBCOMMITTEE PREVIOUSLY MADE AN UNSUCCESSFUL BID TO RESTART THE F117 LINE BY TRYING TO GET THE AIR FORCE TO BUY ADDITIONAL FIGHTERS BUT THE PROPOSAL NEVER BECAME LAW AND LOCKHEED DIDN'T ATTEMPT TO REVIVE THAT IDEA 9309130047 930913 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS INCLUDING AN INITIAL PUBLIC OFFERING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED FIVE NEW LISTINGS INCLUDING TWO INITIAL OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS THE BIG BOARD BEGAN TRADING SHARES OF TEMPLETON EMERGING MARKETS INCOME FUND INC ST PETERSBURG FLA A CLOSEDEND FUND UNDER TCH AS AN INITIAL OFFERING AND BALLARD MEDICAL PRODUCTS DRAPER UTAH A MAKER OF MEDICAL PRODUCTS UNDER BMP BALLARD FORMERLY TRADED OVERTHECOUNTER THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ADDED TWO INITIAL OFFERINGS TO ITS NATIONAL MARKET SYSTEM INBRAND CORP MARIETTA GA A MAKER AND MARKETER OF DISPOSABLE INCONTINENCE PRODUCTS FOR ADULTS UNDER INBR AND CORNERSTONE IMAGING INC SAN JOSE CALIF A DEVELOPER OF DOCUMENT IMAGING PROCESSING SUBSYSTEMS UNDER CRNR THE NASDAQ ADDED TWO COMPANIES THAT FORMERLY TRADED ON THE AMEX BENTON OIL & GAS CO OXNARD CALIF AN OIL & GAS CONCERN UNDER BNTN AND BIOSAFETY SYSTEMS INC SAN DIEGO CALIF A MAKER OF PRODUCTS AIMED AT MINIMIZING OCCUPATIONAL RISKS TO HEALTH CARE WORKERS UNDER BSSI THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING SHARES IN FIRST COLONIAL GROUP INC NAZARETH PA A BANK HOLDING COMPANY UNDER FTCG THE COMPANY FORMERLY TRADED IN THE PINK SHEETS THE AMEX ADDED TWO COMPANIES THAT PREVIOUSLY TRADED OVERTHECOUNTER HARVARD INTERNATIONAL TECHNOLOGIES LTD VANCOUVER BRITISH COLUMBIA A MAKER OF A PROPRIETARY FRENCH FRIED POTATO VENDING MACHINE UNDER FRY AND SAHARA RESORTS LAS VEGAS A CASINO HOLDING COMPANY UNDER SRE MOVING UP FROM THE AMEX'S EMERGING COMPANY MARKETPLACE NORTHERN TECHNOLOGIES INTERNATIONAL CORP LINO LAKES MINN A MAKER OF CORROSIONINHIBITING PRODUCTS WILL TRADE UNDER NTI THE AMEX BEGAN TRADING OPTIONS ON ALLSTATE CORP CALIFORNIA MICROWAVE INC INTELCOM GROUP INC AND CITIZENS UTILITIES CO CLASS B STOCK THE AMEX ALSO BEGAN TRADING FLEXIBLE EXCHANGE INDEX OPTIONS ON THE ITS MAJOR MARKET AND INSTITUTIONAL INDEXES AS WELL AS ON THE STANDARD & POOR'S MIDCAP 400 INDEX THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON PLATINUM SOFTWARE CORP CATO CORP FIELDCREST CANNON HEILIGMYERS CO M/ACOM INC S3 INC CALIFORNIA MICROWAVE INC HERBALIFE INTERNATIONAL INC INTELCOM GROUP INC AND STATION CASINOS INC THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS IN STATION CASINOS INC 9309130046 930913 WILLIAM USERY IS NAMED MEDIATOR IN UMW STRIKE THE FEDERAL MEDIATION AND CONCILIATION SERVICE SAID IT APPOINTED WILLIAM J USERY A SPECIAL MEDIATOR IN THE FOURMONTHLONG STRIKE BY THE UNITED MINE WORKERS AGAINST THE BITUMINOUS COAL OPERATORS ASSOCIATION MR USERY WAS A MEDIATOR IN THE SETTLEMENT OF THE VIOLENT 1989 STRIKE BY THE UMW AGAINST PITTSTON COAL CO A UNIT OF PITTSTON CO HE ALSO IS A FORMER SECRETARY OF LABOR AND FORMER DIRECTOR OF THE FEDERAL MEDIATION AND CONCILIATION SERVICE IN A STATEMENT ROBERT B REICH SECRETARY OF LABOR SAID MR USERY BRINGS ADDITIONAL STATUS ABILITY AND A SPECIAL KNOWLEDGE OF THE INDUSTRY TO THE BARGAINING TABLE THE UMW CALLED THE ANNOUNCEMENT A POSITIVE AND CONSTRUCTIVE STEP TOWARD SETTLING THIS STRIKE WITH AN AGREEMENT THAT'S FAIR TO BOTH PARTIES BUT BR BROWN BCOA'S CHIEF NEGOTIATOR SAID IN A STATEMENT THAT A SPECIAL MEDIATOR ALONE CANNOT SOLVE THE PROBLEMS AT THE BARGAINING TABLE THE PARTIES MUST DO THAT THEMSELVES THE UMW IS STRIKING OVER JOB SECURITY IT SAYS BCOA MEMBERS ARE SHIFTING JOBS TO NONUNION WORKERS THE STRIKE INCLUDES 17000 MINERS AT SIX COMPANIES THE TWO SIDES HAVE HAD FACETOFACE TALKS SINCE AUG 11 UNDER THE GUIDANCE OF THE FEDERAL MEDIATION AND CONCILIATION SERVICE THE SELECTIVE STRIKE BEGAN MAY 10 9309130045 930913 WHO'S NEWS TELXON CORP TELXON CORP AKRON OHIO J ROBERT ANDERSON 57 YEARS OLD VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF GRUMMAN CORP AN AIRCRAFT AND AEROSPACE CONCERN BASED IN BETHPAGE NY WAS ELECTED A DIRECTOR OF THIS MAKER OF PORTABLE DATA COMMUNICATIONS PRODUCTS HIS ELECTION RAISES THE BOARD'S SIZE TO SIX MEMBERS 9309130044 930913 TECHNOLOGY CYGNUS NICOTINE PATCH WORKS WITH COUNSELING REDWOOD CITY CALIF CYGNUS THERAPEUTIC SYSTEMS INC SAID A NEW STUDY OF ITS NICOTINE PATCH SHOWED 25 OF PATIENTS USING THE PATCH AMID A PROGRAM OF PHYSICIAN COUNSELING STAYED OFF CIGARETTES FOR ONE YEAR COMPARED WITH 9 OF PATIENTS USING A PLACEBO PATCH THE STUDY PAIRING THE PATCH WITH DOCTORS' COUNSELING SHOWED THE DEVICE WORKED AS WELL OR BETTER THAN IT DID IN A 1991 STUDY WHEN THE PATCH WAS TESTED IN CONJUNCTION WITH SPECIAL BEHAVIOR MODIFICATION PROGRAMS FOR SMOKING CESSATION IN THAT STUDY THE PATCH ACHIEVED A ONEYEAR QUIT RATE OF 17 COMPARED WITH 4 FOR THE PLACEBO GROUP THE COMPANY'S 16HOUR PATCH WHICH IS WORN ONLY DURING WAKING HOURS IS MARKETED BY THE PARKEDAVIS UNIT OF WARNERLAMBERT CO UNDER THE BRAND NAME NICOTROL GREGORY B LAWLESS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CYGNUS SAID THE STUDY INDICATES THAT WHEN USED AS PART OF A TYPICAL PHYSICIAN COUNSELING PROGRAM OUR 'WAKING HOURS' NICOTINE PATCH MAY HELP ACHIEVE LONGTERM SMOKING CESSATION WITHOUT THE NEED FOR SPECIAL BEHAVIOR MODIFICATION EFFORTS 9309130043 930913 DIVIDENDS ORION CAPITAL CORP ORION CAPITAL CORP NEW YORK DECLARED A 5FOR4 STOCK SPLIT AND BOOSTED ITS QUARTERLY DIVIDEND 13 THE 225 CENT DIVIDEND IS PAYABLE OCT 1 TO SHAREHOLDERS OF RECORD SEPT 21 THE PROPERTY/CASUALTY INSURANCE COMPANY PREVIOUSLY PAID 20 CENTS THE SPLIT IS FOR SHARES OF RECORD OCT 15 ON A POSTSPLIT BASIS THE NEW QUARTERLY DIVIDEND RATE WILL BE 18 CENTS NEW SHARES WILL BE ISSUED NOV 15 THE COMPANY WILL HAVE 145 MILLION SHARES OUTSTANDING 9309130042 930913 LTV PLANS PUBLIC OFFERING TOTALING 20 MILLION SHARES CLEVELAND LTV CORP SAID IT INTENDS A PUBLIC OFFERING OF 20 MILLION SHARES OF ITS COMMON STOCK THE STEELMAKER WHICH JUST EMERGED FROM REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY LAW SAID PROCEEDS WOULD BE USED FOR GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE CAPITAL EXPENDITURES TO CONTINUE THE COMPANY'S FACILITIES IMPROVEMENT AND COST REDUCTION PROGRAMS OR FOR CONTRIBUTIONS TO LTV'S PENSION PLAN THE COMPANY'S STOCK WAS QUOTED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY AT 11 A SHARE DOWN 50 CENTS SALOMON BROTHERS INC GOLDMAN SACHS & CO AND SMITH BARNEY SHEARSON INC WILL ACT AS MANAGING UNDERWRITERS THE COMPANY'S CREDITORS OWN MOST OF LTV'S PRESENT 608 MILLION OUTSTANDING COMMON SHARES WHICH HAVE BEEN TRADED SINCE LATE JUNE WHEN THE COMPANY EMERGED FROM BANKRUPTCY THE COMPANY'S PREVIOUS SHARES WHICH HAD DIPPED TO AN EIGHTH OF A CENT WHILE THE COMPANY WAS IN BANKRUPTCY WERE CANCELED 9309130041 930913 INTERNATIONAL JACQUES DE LAROSIERE TO ASSUME PRESIDENCY AT EUROPEAN BANK SPECIAL TO THE WALL STREET JOURNAL LONDON ON SEPT 27 BANK OF FRANCE GOVERNOR JACQUES DE LAROSIERE WILL TAKE UP HIS NEW POST AS PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD MR DE LAROSIERE'S FOURYEAR TENURE IS INTENDED TO USHER IN A NEW ERA OF STABILITY AND ACCOUNTABILITY AT THE BELEAGUERED BANK MR DE LAROSIERE SUCCEEDS ANOTHER FRENCHMAN JACQUES ATTALI WHO RESIGNED THIS SUMMER DISGRACED BY A SERIES OF FINANCIAL GAFFES THAT BROUGHT GREAT EMBARRASSMENT TO THE BANK MR DE LAROSIERE FORMER HEAD OF THE INTERNATIONAL MONETARY FUND IS A HANDSON MANAGER WITH GREAT EXPERIENCE IN INTERNATIONAL FINANCE MR ATTALI WAS KNOWN FOR HIS VISION WHICH SPAWNED THE BANK BUT WASN'T KNOWN FOR HIS ATTENTION TO DETAIL AND WAS INEXPERIENCED IN BANK MANAGEMENT JEANCLUDE TRICHET FRANCE'S TREASURY DIRECTOR WHO HAS SERVED UNDER BOTH CONSERVATIVE AND SOCIALIST GOVERNMENTS DURING THE PAST SIX YEARS IS EXPECTED TO BE NAMED BY THE FRENCH CABINET MONDAY AS THE NEXT GOVERNOR OF THE BANK OF FRANCE TRICHET 50 YEARS OLD CONSIDERED A CENTRAL PLAYER IN FRENCH AND INTERNATIONAL ECONOMIC AFFAIRS WILL ARRIVE AT THE BANK OF FRANCE AS IT IS PREPARING FOR POLICY INDEPENDENCE WHEN THAT HAPPENS INTEREST RATE ADJUSTMENTS AND OTHER KEY MONETARY DECISIONS NO LONGER WILL BE DICTATED BY THE GOVERNMENT BUT OBSERVERS DON'T EXPECT MR TRICHET TO USE THE BANK'S FREER HAND AS AN EXCUSE TO SHIFT THE POLICY ORIENTATION AWAY FROM ITS CONSERVATIVE TREND 9309130040 930913 MARKETING & MEDIA RANDOM HOUSE TO PRODUCE TITLES WITH BRODERBUND NEW YORK PUBLISHER RANDOM HOUSE INC AND BRODERBUND SOFTWARE INC ANNOUNCED THE CREATION OF A JOINT VENTURE TO PRODUCE MULTIMEDIA SOFTWARE FOR CHILDREN TERMS WEREN'T DISCLOSED BUT THE NEW VENTURE PAIRS THE COUNTRY'S BIGGEST CONSUMER PUBLISHER WITH AN INNOVATIVE PRODUCER OF SOFTWARE BRODERBUND HAS BEEN A PIONEER IN INTERACTIVE ELECTRONIC CHILDREN'S BOOKS SUCH AS ARTHUR'S TEACHER TROUBLE THE BOOKS ENABLE CHILDREN TO CHOOSE OPTIONS SUCH AS ANIMATED SEQUENCES OR HAVING A PASSAGE READ ALOUD BY PARTNERING WITH RANDOM HOUSE NOVATO CALIFBASED BRODERBUND GAINS ACCESS TO A VAST BACKLIST OF CHILDREN'S LITERATURE THAT MAY BE ADAPTED ELECTRONICALLY INCLUDING THE WORKS OF DR SEUSS THE NEW VENTURE TO BE CALLED LIVING BOOKS WILL ISSUE FOUR TITLES IN THE NEXT SEVERAL MONTHS WITH AN ADDITIONAL FIVE TO SEVEN TITLES PLANNED IN 1994 THE TITLES WILL ALL BE CDROM DISKS WHICH CAN ONLY BE PLAYED ON COMPUTERS WITH CDROM DRIVES TOGETHER WE SHOULD BECOME A DOMINANT FORCE IN CHILDREN'S STORYBASED SOFTWARE SAID ALBERTO VITALE CHAIRMAN OF RANDOM HOUSE A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC 9309130039 930913 LOEWEN GROUP SPENT MORE THAN EXPECTED TO ADD FUNERAL HOMES BURNABY BRITISH COLUMBIA LOEWEN GROUP SAID IT HAS SPENT CLOSE TO 200 MILLION CANADIAN DOLLARS US1519 MILLION TO BUY MORE FUNERAL HOMES THIS YEAR AGAINST C120 MILLION IT PREVIOUSLY EXPECTED TO SPEND ROBERT GARNETT SENIOR VICE PRESIDENT FINANCE OF THE BURNABY FUNERALSERVICE COMPANY SAID HE EXPECTS TO CLOSE ANOTHER C25 MILLION TO C50 MILLION OF ACQUISITIONS WITHIN A FEW MONTHS MR GARNETT SAID ABOUT 95 OF THE NEW ACQUISITIONS ARE IN THE US HE SAID THE COMPANY HAS ACCELERATED ITS ACQUISITIONS BECAUSE RECENT US TAX INCREASES AND WORRIES ABOUT MORE OF THEM HAVE HEIGHTENED THE WILLINGNESS TO SELL AMONG SMALL FUNERALBUSINESS OWNERS HE SAID LOEWEN GROUP HAS ABOUT C165 MILLION AVAILABLE FOR FURTHER ACQUISITIONS LOEWEN GROUP SAID FRIDAY IT RECEIVED C79 MILLION IN EXCHANGE FOR SENIOR GUARANTEED NOTES FROM THE EXERCISE OF A PRIVATE PLACEMENT OF WARRANTS ISSUED EARLIER THIS YEAR MR GARNETT SAID THE COMPANY WILL USE THE PROCEEDS TO PAY DOWN BANK DEBT AND HENCE TO FREE UP REVOLVING CREDIT THAT IT USES TO FUND ACQUISITIONS HE SAID THE COMPANY ALSO REALIZED C67 MILLION FROM A PREVIOUSLY REPORTED SHARE ISSUE LAST MONTH AND INTENDS TO USE THE MONEY FOR ACQUISITIONS 9309130038 930913 WHAT'S NEWS WORLDWIDE CLINTON'S HEALTH PLAN ENTAILS TOUGH NEW FEDERAL AND STATE POWERS AS OUTLINED IN A 239PAGE DRAFT THE PROPOSAL AIMS TO STIMULATE MARKET FORCES SO THAT HEALTH PLANS AND PROVIDERS COMPETE ON THE BASIS OF QUALITY SERVICE AND PRICE HOWEVER THE PLAN'S FINANCING WOULD STIPULATE THAT EVERY BUSINESS PAY AT LEAST PART OF HEALTHINSURANCE PREMIUMS FOR ITS EMPLOYEES EVEN PARTTIMERS A PRESIDENTIALLY APPOINTED BOARD WOULD SET STRICT BUDGETS THAT IN TURN WOULD CAP THE AMOUNT PRIVATE HEALTH INSURERS COULD CHARGE THE PLAN INTENDS TO SQUEEZE THE WASTE OUT OF THE HEALTHCARE SYSTEM AND USE THAT MONEY TO FINANCE EXPANDED BENEFITS EVEN AS THE ADMINISTRATION PREPARES TO SELL ITS HEALTHCARE PACKAGE OFFICIALS ARE SIGNALING THAT THE REFORMS ARE OPEN TO NEGOTIATION AND CHANGE RABIN AND ARAFAT FLEW TO THE US TO WITNESS THE SIGNING OF A PEACE PACT THE ISRAELI PRIME MINISTER AND THE PLO LEADER WILL APPEAR WITH CLINTON ON THE SOUTH LAWN OF THE WHITE HOUSE FACING 3000 GUESTS WHO WILL ATTEND THIS MORNING'S SIGNING OF AN ISRAELIPALESTINIAN PEACE ACCORD THE AGREEMENT WILL BE SIGNED BY ISRAEL'S FOREIGN MINISTER AND A TOP PLO OFFICIAL LATER SECRETARY OF STATE CHRISTOPHER WILL CONFER WITH ARAFAT MARKING THE HIGHESTLEVEL MEETING EVER BETWEEN THE US AND THE PLO CHRISTOPHER SAID THAT IF ISRAEL AND SYRIA REACH A PEACE PACT THE US WOULD CONSIDER PUTTING ITS TROOPS IN THE GOLAN HEIGHTS AS A PEACEKEEPING FORCE NATO IS DEVELOPING A PLAN TO SEND ABOUT 50000 PEACEKEEPING TROOPS TO BOSNIA UP TO HALF OF THEM AMERICANS IF A PEACE ACCORD IS REACHED DEFENSE SECRETARY ASPIN SAID HE STRESSED HOWEVER THAT IT WOULD BE HARD TO GET CONGRESS TO APPROVE US PARTICIPATION IF THE ALLIES DON'T CONTRIBUTE HALF THE FORCE REBEL SERBS FIRED ROCKETS INTO TOWNS CLOSE TO THE CROATIAN CAPITAL DEFYING A CEASEFIRE ORDER FROM CROATIA'S PRESIDENT TUDJMAN THE HEAVY ATTACKS NEAR ZAGREB WERE IN RETALIATION FOR A SURPRISE OFFENSIVE ON THURSDAY BY THE CROATIAN ARMY AGAINST SERB VILLAGES IN SOUTHWESTERN CROATIA FIBERGLASS RESEARCH WILL BE REVIEWED UNDER AN ORDER FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE RESEARCH WHICH CONCLUDED THAT FIBERGLASS INSULATION USED IN 90 OF US HOMES IS A POSSIBLE CARCINOGEN HAD BEEN CRITICIZED BY FIBERGLASS MANUFACTURERS EPA CHIEF BROWNER GAVE CALIFORNIA A REPRIEVE FROM SANCTIONS FOR FAILING TO COMPLY WITH CLEAN AIR LAWS SHE SAID THE STATE WOULD BE GIVEN SEVERAL MONTHS TO COME UP WITH AN ACCEPTABLE AUTOINSPECTION PROGRAM LAWMAKERS ADJOURNED OVER THE WEEKEND WITHOUT ADOPTING A STATERUN PROGRAM AS DEMANDED BY FEDERAL OFFICIALS A HAITIAN POLICE CHIEF IS LINKED TO A WAVE OF KILLINGS THREATENING THE RETURN OF HAITI'S EXILED LEADER ARISTIDE UN ENVOY DANTE CAPUTO SAID A DAY AFTER THE SLAYING OF ONE OF ARISTIDE'S KEY FINANCIAL BACKERS IT WAS THE FIRST TIME ANY HAITIAN OR FOREIGN OFFICIAL HAS PUBLICLY TIED THE PORTAUPRINCE POLICE CHIEF MICHEL FRANCOIS TO THE SHOOTINGS SPACE SHUTTLE DISCOVERY WAS LAUNCHED ON A SATELLITEDEPLOYMENT MISSION AFTER TWO MONTHS OF DELAYS THE FLORIDA BLASTOFF HAD BEEN POSTPONED FIVE TIMES FOR EQUIPMENT FAILURES PAYLOAD PROBLEMS AND A METEOR SHOWER THE FIVE ASTRONAUTS SUCCESSFULLY DEPLOYED THE 363 MILLION SATELLITE DEFENSE SECRETARY ASPIN MET IN ROME WITH HIS ITALIAN COUNTERPART IN A BID TO RESOLVE DIFFERENCES CONCERNING THE UN OPERATION IN SOMALIA THE TWO MEN LATER SAID THEY AGREED ON THE NEED FOR A POLITICAL SOLUTION ITALY HAS FAULTED A USLED CRACKDOWN ON CLAN LEADER AIDID NORWEGIANS BEGAN VOTING IN AN ELECTION THAT IS EXPECTED TO KEEP THE LABOR PARTY IN POWER POLLS HAVE SHOWN ERODING SUPPORT FOR THE OPPOSITION CONSERVATIVES ISSUES IN THE VOTE WHICH ENDS TODAY INCLUDE JOBLESSNESS AND NORWAY'S APPLICATION TO JOIN THE EC PETE SAMPRAS OF THE US DEFEATED CEDRIC PIOLINE OF FRANCE IN THREE SETS TO WIN THE US OPEN MEN'S SINGLES TENNIS TITLE ON SATURDAY STEFFI GRAF OF GERMANY BEAT HELENA SUKOVA OF THE CZECH REPUBLIC IN TWO SETS FOR THE WOMEN'S TITLE DIED ERICH LEINSDORF 81 LEADING ORCHESTRA CONDUCTOR WHO WAS KNOWN FOR REVIVING NEGLECTED MUSIC AND EXPLORING NEW WORKS SATURDAY IN ZURICH OF CANCER 9309130037 930913 COURT OVERTURNS ORDER BY CANADA REMOVING LIMITS ON BARLEY TRADE REGINA SASKATCHEWAN CANADA'S FEDERAL COURT STRUCK DOWN A FEDERAL GOVERNMENT ORDER THAT LIFTED RESTRICTIONS ON TRADE IN BARLEY BETWEEN CANADA AND THE US ON AUG 1 THE COURT RULED THAT THE ORDER WAS UNCONSTITUTIONAL BECAUSE IT WASN'T APPROVED BY PARLIAMENT A SPOKESMAN FOR THE GOVERNMENT SAID IT INTENDS TO APPEAL THE RULING THE GOVERNMENT'S DEREGULATION OF THE BARLEY MARKET WAS SUPPORTED BY MANY WESTERN CANADIAN BARLEY GROWERS BUT IT WAS OPPOSED BY MANY OTHER GRAIN FARMERS WHO FEARED IT WOULD UNDERMINE THE CANADIAN WHEAT BOARD THE GOVERNMENT'S GRAIN MARKETING AGENCY THE SASKATCHEWAN WHEAT POOL A FARMERS' COOPERATIVE THAT LED THE LEGAL CHALLENGE OF THE GOVERNMENT'S BARLEY DECISION SAID THE COURT'S RULING MEANS THAT THE WHEAT BOARD HAS BEEN RESTORED TO ITS POSITION AS THE EXCLUSIVE AGENT FOR SALES OF CANADIAN BARLEY IN THE US AND FOR SALES OF MALT BARLEY IN CANADA 9309130036 930913 CURRAGH FAILS TO FIND INVESTOR 2 PROPERTIES ENTER RECEIVERSHIP TORONTO TWO MINERAL PROPERTIES OWNED BY CURRAGH INC WERE PLACED UNDER RECEIVERSHIP AFTER THE BELEAGUERED MINING CONCERN WAS UNABLE TO FIND A LASTMINUTE INVESTOR AN ONTARIO COURT LATE FRIDAY LET BANK OF NOVA SCOTIA APPOINT A RECEIVER FOR CURRAGH'S STRONSAY PROPERTY IN BRITISH COLUMBIA AND SA DENA HES PROPERTY IN YUKON CURRAGH OWES THE BANK ABOUT 37 MILLION CURRAGH SAID ITS CHAIRMAN CLIFFORD FRAME WAS IN EUROPE LAST WEEK SEEKING A CASH INJECTION FROM AN UNNAMED INVESTOR TO REPLENISH THE COMPANY'S EMPTY COFFERS NO SUCH AGREEMENT HAD BEEN MADE BY FRIDAY CURRAGH HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION SINCE APRIL THE COMPANY'S OTHER ASSETS MAINLY THE FARO LEAD AND ZINC MINE IN YUKON AND THE WESTRAY COAL MINE IN NOVA SCOTIA WILL OPERATE UNDER COURT PROTECTION AT LEAST UNTIL SEPT 20 WHEN THE REMAINING CREDITORS WILL PRESENT THEIR PLANS IN COURT IN TOTAL CREDITORS ARE OWED MORE THAN 168 MILLION INCLUDING 130 MILLION IN UNSECURED NOTES CURRAGH'S FINANCIAL WOES BROUGHT ON BY LOW LEAD AND ZINC PRICES WERE WORSENED LAST YEAR BY AN UNDERGROUND EXPLOSION AT THE WESTRAY MINE LAST YEAR THAT KILLED 26 MINERS 9309130035 930913 BOEING RECOMMENDS A CHANGE TO PROTECT WIRING ON SOME JETS SEATTLE BOEING CO IS URGING AIRLINES TO INSTALL A SPECIAL PLASTIC CONDUIT DESIGNED TO PREVENT FRAYING OF ELECTRICAL WIRES THAT COULD CAUSE CARGO DOORS OF ITS 747 JUMBO JETS TO MALFUNCTION THE MOVE ISSUED AS A VOLUNTARY RECOMMENDATION BY THE COMPANY RATHER THAN A MANDATORY FIX ORDERED BY THE GOVERNMENT COMES AFTER YEARS OF DEBATE AND FEDERAL INVESTIGATION OF THE ISSUE IN EARLY 1989 NINE PEOPLE WERE KILLED WHEN A CARGO DOOR OF A UNITED AIRLINES 747 RIPPED OFF THE PLANE NEAR HONOLULU THE NATIONAL TRANSPORTATION SAFETY BOARD EVENTUALLY BLAMED BOEING AND THE FEDERAL AVIATION ADMINISTRATION FOR KNOWING ABOUT WEAK LOCKS AND SUSPECT WIRING ON CARGO DOORS SINCE THE EARLY 1970S BUT FAILING TO CORRECT THEM QUICKLY ENOUGH STRONGER LOCKS AND MORE ELABORATE WARNING INDICATORS HAVE SINCE BEEN INSTALLED ON THE CARGO DOORS OF ALL 747S AND A BOEING SPOKESMAN SAID THAT NOW EVEN A SHORT IN THE WIRES CAN'T CAUSE PROPERLY LOCKED DOORS TO OPEN PREMATURELY A COMPANY SPOKESMAN SAID THE CONDUIT IS INTENDED TO ALLEVIATE A MAINTENANCE RATHER THAN A SAFETY ISSUE TWO YEARS AGO FRAYED WIRES OPENED THE UNLOCKED CARGO DOOR OF A PARKED UNITED 747 UNDERGOING MAINTENANCE 9309130034 930913 WHAT'S NEWS BUSINESS AND FINANCE VIACOM AGREED TO ACQUIRE PARAMOUNT COMMUNICATIONS FOR 82 BILLION A MOVE THAT WOULD CREATE A MULTIMEDIA BEHEMOTH BUT YESTERDAY'S ACCORD ESSENTIALLY PUTS PARAMOUNT IN PLAY AND THERE MAY BE OTHER DEEPPOCKETED SUITORS READY TO TOP VIACOM'S 6914ASHARE OFFER PARAMOUNT STOCK ROSE 425 OR 75 TO FINISH AT 61125 IN FRIDAY'S TRADING FORD AND THE UAW APPEAR TO BE MAKING PROGRESS TOWARD A NEW CONTRACT THAT IS LIKELY TO INCLUDE LOWER STARTING WAGES FOR NEWLY HIRED EMPLOYEES UNION OFFICIALS SAID THEY EXPECT AN AGREEMENT BEFORE THE CURRENT PACT EXPIRES AT MIDNIGHT TOMORROW CHRYSLER SAID IT DOESN'T INTEND TO COLLABORATE WITH FORD AND GM IN A JOINT EFFORT TO PRODUCE ELECTRIC CARS MOST AIRLINES BOOSTED FARES BY 20 ON ROUNDTRIP DOMESTIC TICKETS PURCHASED 14 DAYS IN ADVANCE BUT THE INCREASES MAY NOT STICK UNLESS NORTHWEST AIR FOLLOWS SUIT EVEN IF THEY DO STICK NEW FREQUENTFLIER PROMOTIONS AND DISCOUNTS THAT ARE LIKELY TO BE EXTENDED WILL TAKE AWAY THE STING PRODUCER PRICES TUMBLED 06 IN AUGUST THE FOURTH CONSECUTIVE MONTHLY DECLINE AND THE LARGEST SINCE FEBRUARY 1991 LAST MONTH'S DECLINE REFLECTED A HUGE 256 DROP IN TOBACCO PRICES AS CIGARETTE MAKERS CONTINUE TO BATTLE FOR A SHRINKING CONSUMER BASE STOCKS AND BONDS ROSE ON THE NEWS WITH THE DOW JONES INDUSTRIALS CLIMBING 3214 POINTS TO 362163 THE 30YEAR TREASURY BOND ROSE MORE THAN 1 1/8 POINTS AS ITS YIELD FELL TO 588 JAPAN IS PREPARING NEW MEASURES TO PUMP LIFE BACK INTO ITS ECONOMY PRIME MINISTER HOSOKAWA CALLED FOR A 949 BILLION SPENDING PACKAGE FOR NEW SOCIAL OUTLAYS JAPAN'S FOREIGN MINISTER SENT POSITIVE SIGNALS ABOUT CUTTING THE NATION'S BIG TRADE SURPLUS BAXTER INTERNATIONAL LOST NEARLY 50 MILLION IN CONTRACTS AS A BIG HOSPITAL GROUP CHANGED SUPPLIERS THE MOVE COMES AFTER THE SAME GROUP TOOK ANOTHER BIG CONTRACT AWAY FROM BAXTER CITING CONCERNS ABOUT ITS ETHICS BANKERS REACHED AN ACCORD ON A 17 BILLION RESCUE PACKAGE FOR LONDON'S HUGE CANARY WHARF OFFICE COMPLEX CLEARING THE WAY FOR THE PROJECT TO EMERGE FROM COURT SUPERVISION NEWS CORP AGREED TO SELL MOST OF ITS STAKE IN THE SOUTH CHINA MORNING POST HONG KONG'S PRINCIPAL ENGLISHLANGUAGE NEWSPAPER TO A MALAYSIAN BUSINESSMAN FOR 349 MILLION UNISYS PLANS TO UNVEIL TODAY A LOWCOST MAINFRAME COMPUTER THE MOVE IS A FORERUNNER OF SIMILAR STEPS BY OTHER MAINFRAME MAKERS ALL DESPERATE TO DEFEND THEIR TURF FROM INCREASINGLY POWERFUL SMALLER MACHINES STRATUS COMPUTER HAS ARRANGED TO ACQUIRE A SMALL SPECIALTY SOFTWARE MAKER THE OPENING MOVE IN A 100 MILLION INVESTMENT PLAN INTENDED TO HELP THE COMPANY DIVERSIFY INTO SOFTWARE BONDS LEHMAN BROTHERS TREASURY INDEX 568208 UP 4062 COMMODITIES OIL 1676 A BARREL OFF 21 CENTS DOW JONES FUTURES INDEX 12709 OFF 001 SPOT INDEX 12156 OFF 088 DOLLAR 10605 YEN UP 065 15975 MARKS OFF 00030 9309130033 930913 THE CLINTON HEALTH PLAN ALLIANCES TO MEAN MORE BUREAUCRACY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF PRESIDENT CLINTON GETS HIS WAY ON HEALTHCARE CHANGE GET READY FOR MORE BUREAUCRACY UNDER THE PROPOSAL MOST PEOPLE WOULD EVENTUALLY BUY HEALTH INSURANCE THROUGH PURCHASING GROUPS RUN BY THE STATES EXPERTS ESTIMATE THERE COULD BE AS MANY AS 250 OF THESE EACH WITH ITS OWN BIG STAFF DEPENDING ON HOW THE STATES SET THEM UP THE ALLIANCES WILL DO EVERYTHING FROM DETERMINING HOW MUCH HEALTH INSURERS CAN CHARGE TO EXAMINING THE SOLVENCY OF HEALTH PLANS THEY ALSO WOULD GATHER INFORMATION ON THE PERFORMANCE OF DOCTORS AND HOSPITALS ANALYZE THE DATA AND DISTRIBUTE IT TO MEMBERS WE ARE TALKING ABOUT NEW INSURANCE DEPARTMENTS OF AN INCREDIBLE SIZE SAID CONSULTANT ROBERT LASZEWSKI PRESIDENT OF HEALTH POLICY AND STRATEGY ASSOCIATES IN WASHINGTON THIS IS AN ENORMOUS BUREACRACY ALREADY SOME IN WASHINGTON APPEAR TO BE ESCHEWING THE TERM ALLIANCE AND EVOKING IMAGES OF BIG GOVERNMENT BY CALLING THE GROUPS HEALTH INSURANCE PURCHASING DEPARTMENTS THE PRESIDENT WANTS TO HOLD DOWN HEALTHCARE COSTS BY WRINGING ADMINISTRATIVE WASTE OUT OF THE SYSTEM BUT MR LASZEWSKI AND OTHERS BELIEVE THE ALLIANCES WILL EAT UP A LOT OF THE SAVINGS ANYONE WHO THINKS WE'RE GOING TO SAVE A LOT OF ADMINISTRATIVE COSTS IS KIDDING THEMSELVES HE SAID UNDER THE CLINTON PLAN STATES WOULD HAVE THE FLEXIBILITY TO SET UP ALLIANCES IN VARIOUS WAYS AS LONG AS THEY MEET CERTAIN CRITERIA SOME STATES MIGHT HAVE A SINGLE ALLIANCE RESPONSIBLE FOR ALL HEALTHCARE PURCHASING IN THE STATE OR SEVERAL EACH ASSIGNED TO A SPECIFIC REGION A STATE MIGHT MAKE ALLIANCES AN ARM OF GOVERNMENT OR IT MIGHT MAKE THEM INDEPENDENT AGENCIES WITH BOARD MEMBERS APPOINTED FROM THE PRIVATE SECTOR THE THEORY BEHIND THE ALLIANCES IS SIMPLE CURRENTLY LARGE EMPLOYERS PAY LESS FOR HEALTH INSURANCE FOR THEIR WORKERS THAN SMALL BUSINESSES AND INDIVIDUALS BECAUSE THEY BUY IN BULK BY POOLING SMALL BUSINESSES AND INDIVIDUALS TOGETHER IN AN ALLIANCE THESE GROUPS COULD ENJOY THE SAME DISCOUNTS SMALL BUSINESS AND INDIVIDUALS NOW PAY VASTLY MORE FOR HEALTH INSURANCE THAN BIG EMPLOYERS ALLIANCES ALSO WOULD ALLOW MEMBERS TO MAINTAIN HEALTH INSURANCE EVEN IF THEY SWITCH JOBS ALREADY FLORIDA AND CALIFORNIA HAVE VERSIONS OF ALLIANCES UNDER RECENT HEALTH REFORMS IN THOSE STATES EMPLOYEES OF SMALL BUSINESSES CAN JOIN A PURCHASING GROUP TO BUY INSURANCE THEIR WORKERS THEN SELECT FROM HEALTH PLANS THAT MEET THE STANDARDS OF THE PURCHASING GROUP BUT THOSE GROUPS DIFFER FROM WHAT CLINTON PROPOSES IN AN IMPORTANT RESPECT THEIR MEMBERSHIP IS VOLUNTARY IF A SMALL BUSINESS WANTS TO BUY INSURANCE WITHOUT GOING THROUGH THE ALLIANCE IT'S FREE TO DO SO PROPONENTS ARGUE SUCH OUTSIDE COMPETITION IS ESSENTIAL IN KEEPING THE ALLIANCES EFFICIENT COMPETITION WOULD FORCE ALLIANCES TO BE INNOVATIVE AND COST EFFECTIVE BECAUSE UNHAPPY MEMBERS COULD QUIT AND GO ELSEWHERE 9309130032 930913 BUSINESS BRIEF MAXTOR CORP HYUNDAI ELECTRONICS SEALS AGREEMENT TO BUY 40 STAKE MAXTOR CORP SAID SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES CO FINALIZED ITS AGREEMENT TO ACQUIRE AN ESTIMATED 40 STAKE IN IT VALUED AT 150 MILLION A MAXTOR SPOKESMAN SAID THAT THE INVESTMENT WILL INJECT A HEALTHY DOSE OF WORKING CAPITAL IN THE SAN JOSE CALIF DISKDRIVE MAKER ALLOWING IT TO BECOME MORE COMPETITIVE HYUNDAI ELECTRONICS HE SAID WAS LOOKING TO GAIN A STRONGER FOOTHOLD IN THE AMERICAN ELECTRONICS MARKET TERMS OF THE TRANSACTION EXPECTED TO CLOSE IN NOVEMBER CALL FOR HYUNDAI ELECTRONICS TO BUY ABOUT 194 MILLION SHARES OF MAXTOR'S COMMON STOCK AT 770 A SHARE THE DEAL ALSO CALLS FOR HYUNDAI ELECTRONICS TO RECEIVE CERTAIN VOTING RIGHTS AND TO BOARD REPRESENTATION UNDER THE AGREEMENT HYUNDAI ELECTRONICS CAN'T ACQUIRE MORE THAN A 45 STAKE IN THE DISK DRIVE MAKER IN OVERTHECOUNTER TRADING FRIDAY MAXTOR ROSE 25 CENTS TO 625 A SHARE 9309130031 930913 CANADIAN STEEL OUTPUT FALLS OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 275968 METRIC TONS IN THE WEEK ENDED SEPT 4 A 36 DECLINE FROM 286387 TONS THE PREVIOUS WEEK BUT A 33 INCREASE FROM 267088 TONS A YEAR EARLIER A METRIC TON IS EQUAL TO 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 9753712 TONS A 56 INCREASE FROM 9239323 TONS A YEAR EARLIER STATISTICS CANADA SAID 9309130030 930913 GLOBAL VIEW HOW MUCH PEACE CAN WESTERN MONEY BUY BY GEORGE MELLOAN IT SEEMS THAT EVERYONE WANTS A MARSHALL PLAN YASSER ARAFAT EXPECTS SHORTLY TO CONTROL THE WEST BANK AND GAZA AND WOULD LIKE 6 BILLION TO SUPPORT WHATEVER HE PLANS TO DO THERE NELSON MANDELA IS CONFIDENT THAT HE SOON WILL ASSUME POWER IN SOUTH AFRICA LAST WEEK HE TOLD A GROUP OF WHITE BUSINESSMEN IN CAPE TOWN THAT HE WILL NEED MASSIVE FOREIGN INVESTMENT FOR SCHOOLS HOUSING AND THE LIKE SINCE HIS CHANCES FOR PRIVATE INVESTMENT AREN'T GREAT CERTAINLY NOT FOR THE PURPOSES MENTIONED HE PRESUMABLY WAS SOLICITING MONEY FROM GOVERNMENTS AND MULTILATERAL BANKS IN CAMBODIA THE US AND ITS FRIENDS HAVE PROMISED 880 MILLION TO THE NEW ROYALIST GOVERNMENT BUT PRINCE NORODOM SIHANOUK HAS BEEN MIFFED AT AN INITIAL CONDITION SET BY THE US ONE THAT SEEMED REASONABLE IN THE LIGHT OF RECENT HISTORY THE US DEMANDED THAT THE PRINCE KEEP THE MURDEROUS KHMER ROUGE OUT OF GOVERNMENT BUT IT MAY NOW BE WAVERING IT IS INTERESTING THAT IN ALL THREE CASES THE MENDICANTS FEEL THAT WESTERN LEADERS ARE TRIPPING OVER THEMSELVES TO FETCH THEM FUNDS SO WHY NOT SET THE TERMS BUT THE MENDICANTS DIDN'T GET TO WHERE THEY ARE WITHOUT AUDACITY MR ARAFAT'S PALESTINE LIBERATION ORGANIZATION MR MANDELA'S AFRICAN NATIONAL CONGRESS AND THE KHMER ROUGE HAVE COMMANDED THE ATTENTION OF THE WORLD THROUGH A PRIMITIVE AND PERSUASIVE MEANSTERRORISM THEY NOW LAY CLAIM TO WESTERN FINANCING AS THEIR PRICE FOR GOING STRAIGHT AT LEAST MR ARAFAT AND MR MANDELA'S ANC MORE OR LESS PROMISE TO BEHAVE IT IS NOT CLEAR THAT THE KHMER ROUGE HAVE OFFERED PRINCE SIHANOUK ANYTHING AT ALL AS REWARD FOR EMPLOYING PRINCELY PETULANCE TO EXTRACT AMERICAN CASH THE PLO'S MOST FAMOUS TERRORIST EXPLOIT WAS THE MURDER OF 11 MEMBERS OF ISRAEL'S OLYMPIC TEAM IN MUNICH IN 1972 THE ANC'S MILITANT WING PRACTICED THE ART OF NECKLACING LOOPING A KEROSENEFILLED TIRE AROUND A VICTIM'S NECK AND SETTING IT ALIGHT AS FOR THE KHMER ROUGE ITS VICTIMS ARE COUNTED NOT IN THE THOUSANDS BUT MILLIONS ALL THREE HAVE TERRORIZED THEIR OWN PEOPLE THE ANC'S VICTIMS HAVE USUALLY BEEN BLACK AFRICANS AND THOSE OF THE KHMER ROUGE FELLOW CAMBODIANS THE PLO'S TERROR HAS BEEN PRACTICED NOT ONLY AGAINST JEWS BUT PALESTINIAN MODERATES AS WELL LET'S NOW DROP THE KHMER ROUGE OUT OF THE DISCUSSION FOR A MOMENT NO ONE IN THE WEST IS TRYING SO FAR AS I KNOW TO WIN THEM EXCULPATION BUT THE ANC'S MR MANDELA HAS BECOME SOMETHING OF AN INTERNATIONAL FOLK HERO A STATUS THAT WILL GREATLY ENHANCE HIS CLAIM TO WESTERN FINANCING IF HE COMES TO POWER AND OF COURSE TODAY IS MR ARAFAT'S TURN TO STEP INTO THE LIMELIGHT WITH A SMILE AND BOW ASSUMING THAT TODAY'S WHITE HOUSE SIGNING OF A PLOISRAELI PEACE ACCORD COMES OFF AS PLANNED PRESIDENT CLINTON WILL OFFICIATE AT THE WEDDING AS A PROUD PARSON DO YOU YITZHAK RABIN TAKE YASSER ARAFAT AS YOUR I DO BECAUSE I DON'T SEEM TO HAVE MUCH CHOICE SAYS MR RABIN WE'LL HAVE TO TRY TO MAKE THE BEST OF IT IN THIS CONTEST OF SYMBOLISM IT WILL BE INTERESTING TO SEE IF MR ARAFAT WILL SUCCEED IN PACKING THE PISTOL HE ALWAYS CARRIES ON HIS HIP PAST THE WHITE HOUSE GUARDS IT WAS THERE WIRE SERVICES SAID WHEN HE TOOK OFF FROM TUNIS IN HIS BOEING 707 YESTERDAY AT ABOUT THE TIME HE WAS DUE TO ARRIVE IN WASHINGTON THE WORLD BANK RELEASED ITS RECOMMENDATION ON HOW MUCH MONEY HE SHOULD GET A SUM CONSIDERABLY LESS THAN THE 6 BILLION HE HAD DEMANDED IT PROPOSED HALF THAT TO BE EXACT A MERE 3 BILLION SPREAD OVER 10 YEARS THE MONEY WOULD GO MAINLY FOR INFRASTRUCTURE THINGS LIKE POWER PLANTS SEWAGE FACILITIES AND TRANSPORT MAYBE MR ARAFAT COULD RAISE SOME MORE WITH ARAFAT BONDS TO BE SOLD TO WEALTHY PALESTINIANS AROUND THE WORLD THE BANK SUGGESTED IN EUROPE YESTERDAY GERMAN CHANCELLOR HELMUT KOHL INVOKED THOSE OFTUSED MAGIC WORDS MARSHALL PLAN AS HE BACKED THE IDEA OF AN INTERNATIONAL WEDDING GIFT TO MR ARAFAT AS FOR GERMANY HE SAID IN AN INTERVIEW WITH THE BERLINER MORGENPOST THAT IT WOULD DO WHAT IT COULD BUT THIS IS A TASK PARTICULARLY FOR SEVERAL OF OUR EC PARTNERS WHO HAVE A MUCH BIGGER HISTORICAL RESPONSIBILITY THAN GERMANY IN THE MIDDLE EAST THERE WERE NO REPORTS ON HOW JOHN MAJOR AND EDOUARD BALLADUR REACTED BUT LET'S GET DOWN TO CASES WILL MONEY BUY PEACE IN ANY OF THESE PLACES ISRAEL IS TAKING A GAMBLE ON MR ARAFAT BECAUSE ITS PEOPLE ARE TIRED OF TERRORISM THE SIXYEAROLD INTIFADA HAS SAPPED THE MORALE OF ISRAELI SOLDIERS BY SUBJECTING THEM TO AMBUSHES AND FORCING THEM INTO IGNOBLE COMBAT WITH PEOPLE WHO ARE OSTENSIBLY CIVILIANS MANY OF THEM VERY YOUNG MR ARAFAT FOR HIS PART IS SHORT ON CASH BUT EVEN IF HE IS SINCERELY COMMITTED TO PEACE HE WILL BE TRYING TO MAINTAIN ORDER IN SECTORS INCREASINGLY DOMINATED BY ARAB MILITANTS WHO ARE NOT MEMBERS OF THE PLO AND WHO HAVE REJECTED HIS PEACE DEAL IT IS HARD TO IMAGINE MR ARAFAT BRINGING MILITANTS UNDER CONTROL AND UNLIKELY THAT WESTERN MONEY WILL HELP MUCH IN SOUTH AFRICA SIMILARLY MR MANDELA AND THE ANC MAY INDEED GAIN POWER BUT THE NEGOTIATIONS LEADING UP TO POWER SHARING HAVE BEEN MARKED BY THE FREQUENCY WITH WHICH ZULU CHIEFTAIN MANGOSUTHU BUTHELEZI LEADER OF THE LARGEST BLACK TRIBE HAS BEEN CROWDED OUT OF THE TALKS LOWGRADE WARFARE BETWEEN THE ANC AND MR BUTHELEZI'S INKATHA MOVEMENT SEEMS LIKELY TO CONTINUE AND COULD ESCALATE IF THE ANC IS ALLOWED TO DOMINATE GOVERNMENT WESTERN MONEY WON'T PREVENT THAT EITHER IN CAMBODIA THE HISTORY OF THE KHMER ROUGE IS SUCH THAT IT SEEMS UNLIKELY TO GIVE UP ITS AMBITIONS TO REGAIN POWER IT DOESN'T REALLY NEED WESTERN MONEY IT DERIVES AN INCOME FROM THE SALE OF HARDWOOD AND GEMSTONES THROUGH THAILAND AN EXCELLENT ARTICLE IN THE WALL STREET JOURNAL EUROPE LAST WEEK WENT A BIT FURTHER THAN THESE SKEPTICAL COMMENTS DANIEL DORON A FREEMARKET ISRAELI ARGUED THAT PAST FINANCIAL AID FAR FROM AMELIORATING CONFLICT MAY HAVE HELPED SUPPORT IT IN PALESTINE THE MONEY OFTEN HAS GONE FOR WELFARE SYSTEMS THAT FINANCE IDLENESS DIVERTING THE CONSIDERABLE TALENTS OF PALESTINIAN ARABS FROM WEALTH CREATION TO POLITICAL ACTIVISM AND RADICALISM IN ISRAEL US AID HAS SUPPORTED STATISM DENYING THE WHOLE REGION PRIVATE ECONOMIC GROWTH THAT COULD HAVE RELIEVED STRIFE BUT THE IDEA THAT PEACE CAN BE BOUGHT DIES HARD MODERN POLITICIANS EVEN THOSE RUNNING BIG DEFICITS ALSO ARE GUIDED BY THAT OLD LINE IT'S ONLY MONEY 9309130029 930913 WHO'S NEWS DIED WERNER NIEFER 65 THE FORMER CHAIRMAN OF MERCEDESBENZ AG WHO STARTED WITH THE GERMAN LUXURY CAR MAKER A UNIT OF DAIMLERBENZ AG AS AN APPRENTICE AND ROSE THROUGH THE RANKS TO BECOME CHAIRMAN HE DIED SUNDAY IN STUTTGART GERMANY FOLLOWING SURGERY FOR LUNG CANCER 9309130028 930913 THE HOTELS IN UMAG ARE FULL OF REFUGEES AS WELL AS TOURISTS CROATIAN RESORT PLAYS DOWN ITS MANY NONPAYING GUESTS IN QUEST FOR HARD CURRENCY BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL UMAG CROATIA STAYING AT THE HOTEL ADRIATIC OVERLOOKING THE MARINA ARE SEVERAL DOZEN ITALIANS AND AUSTRIANS WHO HAVE COME TO THIS SEASIDE RESORT FOR AN INEXPENSIVE WEEKEND OF LOUNGING IN THE SUN AND TRYING THEIR LUCK AT ROULETTE STAYING AT THE NEIGHBORING HOTEL PUNTA ARE 442 REFUGEES FROM THE CROATIAN TOWN OF VUKOVAR THEY ARE HOPING TO GET LUCKY TOO THEY HAVE BEEN HOLED UP HERE EVER SINCE THE YUGOSLAV CIVIL WAR DROVE THEM FROM THEIR HOMES 18 MONTHS AGO THE FOOD IS BETTER AT THE ADRIATIC WHERE A ROOM CAN BE HAD FOR 25 OR LESS A NIGHT AT THE PUNTA FOOD IS PROVIDED BY RELIEF AGENCIES THIS PLACE DOESN'T HAVE A SWIMMING POOL A CASINO OR TOILET PAPER SOAP IS DELIVERED FROM TIME TO TIME BY THE RED CROSS SHUFFLING BACK TO HER ROOM AT THE PUNTA WITH A DISH OF GREASY STEW KATJA DRAGIC A BOSNIAN REFUGEE IN HER FIFTIES DESCRIBES THE MAIN DIFFERENCE TOURISTS ARE HERE BECAUSE THEY LIKE IT SHE SAYS GRIMLY WE ARE HERE BECAUSE WE HAVE NO CHOICE WELCOME TO ISTRIA A HILLY PENINSULA JUTTING INTO THE ADRIATIC JUST SOUTH OF TRIESTE AND ACROSS THE WATER FROM VENICE LONG A TOURIST SPOT IT NOW EXHIBITS A BIZARRE JUXTAPOSITION OF PLEASURESEEKERS FROM THE WEST LOOKING FOR A BARGAIN AND REFUGESEEKERS FROM THE EAST WHO HAVE LOST WHAT LITTLE THEY ONCE HAD THE VACATIONERS STAY IN THE CLASSIER HOTELS OR AT CAMPSITES GORGE THEMSELVES ON FRIED SHRIMP AND BUY TSHIRTS AT THE LOCAL STORES THAT BOAST IN FRACTURED ENGLISH I SURVIVED HOLLIDAYS IN CROATIA THE REFUGEES REAL SURVIVORS ARE PUT UP IN THE B' CATEGORY HOTELS OR AT A NEARBY REFUGEE CAMP THEIR TSHIRTS WERE GIVEN TO THEM BY HUMANITARIAN ORGANIZATIONS THE 20 IT MIGHT COST FOR DINNER AT THE BEST RESTAURANT IN TOWN WOULD KEEP THEM FED FOR TWO WEEKS THE ART OF COEXISTING HERE IS FOR THE TWO CAMPS TO PRETEND NOT TO NOTICE EACH OTHER TO THE TOURISTS THE REFUGEES ARE AN UNWELCOME REMINDER OF THE REAL WORLD THE REFUGEES HAVE BEEN WARNED BY POLICE NOT TO SCARE OFF THE PAYING GUESTS THE REFUGEE CAMP IN SAVUDRIJA A SHORT DISTANCE UP THE COAST FROM UMAG IS ONE OF THE BIGGEST IN CROATIA CURRENTLY HOUSING ABOUT 2500 BOSNIANS MOST OF THEM SURVIVORS OF ETHNIC CLEANSING IN THE REGION AROUND SARAJEVO THE CAMP SITS ON A PROMONTORY OVERLOOKING THE BAY WITH CLUSTERS OF PREFABRICATED HUTS AND TRAILERS NEATLY ARRAYED AMONG THE PINES DESPITE AN OUTBREAK OF HEPATITIS LAST WINTER IT'S ONE OF THE BEST SAYS CHRISTIAN GORITSCHNIG 35 AN AUSTRIAN AID WORKER WHO SUPERVISES RELIEF EFFORTS AT THE REFUGEE CAMP ITALY AND AUSTRIA ARE CLOSE SO ALL THE HUMANITARIAN AID ARRIVES AND THE WAR IS QUITE FAR AWAY LESS THAN 200 MILES ON THE PEBBLE BEACH JUST IN FRONT OF THE CAMP LIE SEVERAL HUNDRED TOURISTS SUNNING THEMSELVES DOZING UNDER BIG RED COCACOLA UMBRELLAS OR WATCHING YACHTS BOBBING IN THE BAY MANY OF THE VACATIONING WOMEN ARE IN SKIMPY SWIMSUITS OR ARE TOPLESS THE BOSNIAN REFUGEE WOMEN CROUCHING UNDER TREES 50 YARDS AWAY ARE CLAD IN BLACK FROM SCARF TO ANKLE NO I DIDN'T KNOW THERE WAS A CAMP HERE SAYS JAROSLAV TINTERA SQUINTING IN THE DIRECTION OF THE HUTS HE IS A PHYSICIST WORKING IN GERMANY WHO HAS DRIVEN DOWN ON VACATION WITH HIS WIFE AND DAUGHTER THE BIG PACKAGETOUR COMPANIES NO LONGER OFFER ISTRIA AS A TOURIST DESTINATION BUT THE PLACE IS A LOT BUSIER THAN IT WAS A YEAR AGO NOTWITHSTANDING THE REFUGEES RAMPANT INFLATION AND AN UGLY CEMENT FACTORY BY THE BEACH IN UMAG PRICES NEVER PARTICULARLY HIGH HAVE BEEN CUT BY AS MUCH AS 30 IF YOU PAY IN HARD CURRENCY IT'S CHEAP HERE MR TINTERA SAYS YOU CAN GET BEER SALAD AND A PIZZA FOR 50 CENTS THE PROBLEM NOW IS FINDING ACCOMMODATION JASMIN A 16YEAROLD WAIF FROM CENTRAL BOSNIA AND HIS FAMILY HAVE ALSO HAD ACCOMMODATION PROBLEMS WHEN SERBIAN TROOPS ATTACKED HIS VILLAGE AND DESTROYED HIS HOUSE A YEAR AGO HE FLED WITH HIS MOTHER AND BROTHER HIS FATHER WAS CAPTURED AND HELD FOR THREE MONTHS AS A PRISONER OF WAR BUT MANAGED TO JOIN THEM AT THE REFUGEE CAMP AFTER AN EXCHANGE OF PRISONERS I GET USED TO LIVING HERE JASMIN SAYS WITH A SHRUG THE MEALS ARE NOT VERY GOOD BUT WE GET MEALS HE IS NERVOUS ABOUT TALKING AS ARE ALL THE OTHER REFUGEES CROATIAN POLICE PATROL THE CAMP AND ACTIVELY DISCOURAGE THEM FROM MINGLING WITH THE TOURISTS A FEW DAYS EARLIER THE POLICE TOOK AWAY TWO MEN WHOSE PAPERS WEREN'T IN ORDER AND NOBODY KNOWS WHAT BECAME OF THE MEN THE BOSNIAN REFUGEES HAVE THE WORST DEAL MANY OF THE ETHNIC CROATS WHO FLED THEIR HOMES ARE HOUSED IN THE HOTELS AND CAN FIND WORK THEIR CHILDREN ARE ALLOWED TO GO TO THE LOCAL SCHOOLS ETHNIC BOSNIANS ON THE OTHER HAND ARE KEPT IN THE CAMP UNDER A CURFEW AND THE CHILDREN AREN'T ALLOWED TO ATTEND REGULAR SCHOOLS SOME DO GO TO CLASSES TAUGHT BY AID WORKERS IN THE CAMP DISCRIMINATION STARTS WITH THEIR REFUGEE PAPERS WHICH ARE GREEN ETHNIC CROATS HAVE WHITE ONES WE ALL WANT TO LEAVE BUT NOBODY WILL HAVE US SAYS ONE MIDDLEAGED BOSNIAN SHAKING HIS HEAD CROATIA WHICH BADLY NEEDS ALL THE HARDCURRENCY REVENUE IT CAN EARN FROM TOURISM WOULD LOVE TO BE RID OF THE BOSNIAN REFUGEES AND DOESN'T PARTICULARLY LIKE HAVING CROATIAN REFUGEES IN THE HOTELS IT CAN'T EXPEL ANY OF THE REFUGEES BECAUSE OF WESTERN PRESSURE SO IT TRIES TO HIDE THE PROBLEM STANDING AT A FLIP CHART IN HIS UMAG OFFICE DINKO BENOLIC THE LOCAL DIRECTOR OF TOURISM TALKS ABOUT HIS PUBLICITY CAMPAIGN TO ATTRACT FOREIGN GUESTS THEN OUTLINES HIS PLANS FOR DEVELOPING THE RESORT THE ADRIATIC 30 YEARS OLD IS TO BE TORN DOWN AND REPLACED BY A NEW HOTEL THE CEMENT FACTORY IS TO BE RELOCATED A GOLF COURSE AN UNDERGROUND PARKING GARAGE A NEW MARINA ALL ARE IN THE OFFING AS FOR FINANCING THE 150 MILLION PROGRAM CREDIT IS DIFFICULT TO GET NOW MR BENOLIC SAYS BUT WHEN THE WAR STOPS WE THINK IT WILL NOT BE A PROBLEM BESIDES HE ADDS WE ARE VERY SATISFIED WITH THIS SEASON THE HOTELS ARE 90 FULL WHAT ABOUT ALL THE REFUGEES BEING PUT UP IN THE HOTELS MR BENOLIC SWALLOWS HARD THE TOURIST DESTINATIONS ARE EXEMPTED FROM HAVING REFUGEES HE SAYS THAT ISN'T WHAT THE GLOSSY BROCHURE MR BENOLIC HAS BEEN PRINTING SUGGESTS IT FEATURES AMONG OTHERS THE HOTEL PUNTA FULLY BOOKED THOUGH IT IS WITH REFUGEES AT THE PUNTA LUCANA ZUBIN THROWS OPEN THE DOOR TO ROOM 777 AND WAVES HER ARM JUST LOOK AT THAT SHE SAYS IN DISGUST THE BED FRAME IS TURNED ON ITS SIDE THE MATTRESS THROWN IN A CORNER ALL THE LIGHT FIXTURES ARE BROKEN THE BATHROOM STINKS THIS IS THE REFUGEES' WAY OF SAYING THANK YOU MS ZUBIN SAYS THEATRICALLY THROWING OPEN THE WINDOW TO LET IN SOME BADLY NEEDED FRESH AIR THE 40YEAROLD MS ZUBIN USED TO BE THE HOTEL'S CHIEF RECEPTIONIST WHEN THE REFUGEES FROM VUKOVAR STARTED ARRIVING IN SEPTEMBER 1991 SHE BECAME THE HOTEL'S ADMINISTRATOR SEVENTYTWO CHILDREN UNDER 10 ONE CHILD RUN OVER BY A PASSING CAR ONE MARRIAGE THREE BIRTHS ONE HEART ATTACK SHE REELS OFF HER TALLY AS IF SHE WERE RECITING THE DINNER MENU IN THE OLD DAYS THE SAME AUSTRIAN FAMILIES USED TO COME TO THE HOTEL AGAIN AND AGAIN SHE RECALLS NOW THE RECEPTION AREA HAS BEEN BOARDED UP AND SHE MUST DEAL WITH THIS NEW SORT OF HOTEL GUEST THEY DON'T HAVE A HIGH LEVEL OF CULTURE SHE SAYS WRINKLING HER NOSE BUT THEY ARE IN THE MIDDLE OF CIVILIZATION WHERE THEY CAN MEET BELGIANS AND GERMANS THESE THINGS DON'T GO TOGETHER VERY WELL IT'S LATE AFTERNOON OVER AT THE ADRIATIC GUESTS ARE HAVING THEIR APERITIFS ON THE TERRACE AT THE PUNTA IT IS GREASY MACARONI SOUP AGAIN A FEW OF THE DINERS STOP TO TALK I THANK GOD I'M STILL ALIVE BUT I DON'T LIKE THE FOOD SAYS A MAN IN HIS TWENTIES IN A WHITE TSHIRT AND CHEAP SUNGLASSES AT THE EXIT STANDS DJURO VUJEVIC HE HAS JUST FOUND A JOB AS A BUS DRIVER HE HOPES THE WAR WILL SOON END SO HE AND HIS WIFE AND TWO DAUGHTERS CAN GO HOME TO VUKOVAR IT'S FUNNY LIVING HERE WE HAVE NOTHING THE OTHERS HAVE SO MUCH HE SAYS I THINK WE DISTURB THE TOURISTS 9309130027 930913 EC WILL URGE US FLEXIBILITY' ON FARM AID FRANCE'S FIERCE OPPOSITION TO SUBSIDY CUTS SPURS MEETING IN WASHINGTON BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL ALDEN BIESEN BELGIUM THE EUROPEAN COMMUNITY FACED WITH FIERCE FRENCH OPPOSITION TO AN ECUS ACCORD ON FARM SUBSIDIES SENT ITS TOP OFFICIALS TO WASHINGTON TO URGE THE US TO SHOW FLEXIBILITY IN INTERPRETING THE CRUCIAL AGREEMENT ENDING A TWODAY MEETING AT A REMOTE CASTLE SURROUNDED BY APPLE ORCHARDS EC FOREIGN MINISTERS SOUGHT TO DRAW A DISTINCTION BETWEEN RENEGOTIATING THE BLAIR HOUSE ACCORD WHICH THE US HAS DISMISSED AS UNACCEPTABLE AND FINDING SOME REFINING LANGUAGE THAT MEETS FRANCE'S UNRELENTING OPPOSITION TO THE SUBSIDYSLASHING DEAL REACHED IN NOVEMBER WE DON'T BELIEVE IT SHOULD BE RENEGOTIATED BUT WHAT CAN BE DONE TO CLARIFY IT IS ANOTHER QUESTION SAID BRITISH FOREIGN SECRETARY DOUGLAS HURD FRANCE HAS A FIRSTCLASS POLITICAL PROBLEM AND THERE'S A TRADITION IN THE COMMUNITY THAT WHEN A MEMBER STATE HAS A FIRSTCLASS POLITICAL PROBLEM OTHERS LISTEN AND TRY TO HELP EC COMMISSION PRESIDENT JACQUES DELORS AND BELGIAN FOREIGN MINISTER WILLY CLAES WHOSE COUNTRY HOLDS THE ROTATING EC PRESIDENCY WERE TO MEET TODAY WITH US SECRETARY OF STATE WARREN CHRISTOPHER THE TWO HAD BEEN INVITED TO WASHINGTON FOR THE SIGNING OF THE ISRAELPALESTINE LIBERATION ORGANIZATION PEACE AGREEMENT I AM GOING TO ASK FOR SOME FLEXIBILITY FROM THE AMERICANS SAID MR CLAES SEPARATELY A SCHEDULED MEETING IN WASHINGTON IS EXPECTED TO TAKE PLACE BETWEEN SIR LEON BRITTAN THE EC'S FOREIGN TRADE COMMISSIONER AND US TRADE REPRESENTATIVE MICKEY KANTOR FRANCE'S THREAT TO VETO THE BLAIR HOUSE ACCORD WHICH COULD DERAIL SIXYEAROLD EFFORTS TO REACH A WORLD TRADE DEAL HAS DOMINATED EC POLITICS FOR THE PAST THREE WEEKS WHILE THERE WAS NO SUBSTANTIVE CHANGE OF POSITION AT THE FOREIGN MINISTERS' INFORMAL WEEKEND RETREAT IN EASTERN BELGIUM THE MEETING'S TONE INDICATED GRUDGING ACCEPTANCE THAT THE FRENCH VETO THREAT IS REAL AND THAT WASHINGTON SHOULD BE CLEARLY TOLD THAT A GLOBAL ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IS IMPERILED UNLESS SOMETHING IS DONE TO MAKE THE PACKAGE MORE ACCEPTABLE TO THE FRENCH THE VETO THREAT IS VERY SERIOUS AND I DID NOT HEAR ANY MINISTER TAKE THE QUESTION LIGHTLY SAID MR DELORS WE ARE SEEKING WAYS IN WHICH TO BE HELPFUL TO A MEMBER STATE THAT HAS A REAL PROBLEM WHILE AT THE SAME TIME LIVING UP TO AN INTERNATIONAL AGREEMENT ADDED THE DANISH FOREIGN MINISTER NIELS HELVEG PETERSEN NO ONE PREDICTS THAT WILL BE EASY THE FOREIGN MINISTERS WENT OUT OF THEIR WAY TO PLAY DOWN EXPECTATIONS THAT ANY NEW BREAKTHROUGH WILL EMERGE THIS WEEK IN TIME FOR A MUCHBALLYHOOED JUMBO MEETING OF EC FOREIGN AND FARM MINISTERS ON SEPT 20 IN BRUSSELS THE FOREIGN MINISTERS MEET OCT 45 IN LUXEMBOURG SEVERAL MINISTERS INCLUDING MR CLAES ALSO SAID IT COULD BE POINTLESS TO HAVE A SPECIAL EC SUMMIT IF THE COMMUNITY WAS STILL SQUABBLING OVER GATT THE SUMMIT IS TENTATIVELY SET FOR OCT 29 ASSUMING GERMANY OVERCOMES A COURT CHALLENGE AND BECOMES THE LAST EC NATION TO RATIFY THE MAASTRICHT TREATY BUT A GATT BROUHAHA WOULD ONLY UNDERSCORE THE COMMUNITY'S DIVISIONS AT A SUMMIT DESIGNED TO SHOWCASE ITS NEW MAASTRICHTERA UNITY ECHOING THE FRENCH GOVERNMENT'S BATTLE CRY OF RECENT WEEKS FOREIGN MINISTER ALAIN JUPPE SAID WE ARE FIRMLY DECIDED NOT TO ACCEPT BLAIR HOUSE AS IT IS THE ACCORD CALLS FOR A 21 REDUCTION IN THE VOLUME OF SUBSIDIZED FARM EXPORTS OVER SIX YEARS SEVERAL POSSIBLE CLARIFICATIONS ARE BEING DISCUSSED WITHIN EC CIRCLES PUSH THE BULK OF THE CUTS FROM THE START OF THE PERIOD TOWARD THE END KNOWN AS BACKLOADING IN GATT JARGON ALLOW AN AGGREGATE SUBSIDY CUT RATHER THAN SINGLING OUT PRODUCTS AND EXCLUDE SOME EC STOCKPILES MR DELORS ALSO SUGGESTED THAT STRENGTHENED EC TRADE DEFENSES SUCH AS ANTIDUMPING DUTIES AS URGED BY FRANCE EARLIER THIS MONTH MIGHT BE AN IMPORTANT PART OF ANY GATTRELATED PACKAGE ANOTHER OPTION DISCUSSED BY THE FOREIGN MINISTERS WHO MET JUST 124 MILES FROM THE NOWFAMOUS DUTCH TOWN OF MAASTRICHT WHERE THE EUROPEAN UNITY TREATY WAS SIGNED CALLS FOR SOME TYPE OF FRENCH OPT OUT ALONG THE LINES OF DENMARK'S EXEMPTION FROM THE MAASTRICHT TREATY'S KEY ELEMENTS BUT SEVERAL OFFICIALS INCLUDING THE DANISH MINISTER SAID THERE ARE KEY DIFFERENCES BETWEEN THE TWO SITUATIONS IN THAT MAASTRICHT INVOLVES EC INSTITUTIONAL ISSUES WHILE BLAIR HOUSE AND GATT CONCERN INTERNATIONAL AGREEMENTS 9309130026 930913 LETTERS TO THE EDITOR LAWS THAT MAKE CHILDREN CHATTEL AFTER MONTHS OF NEWS COVERAGE AND EDITORIAL COMMENT ON THE BABY JESSICA CASE WE WERE HEARTENED TO SEE CHARLOTTE ALLEN'S ARTICLE OUR ARCHAIC ADOPTION LAWS IN YOUR AUG 11 RULE OF LAW COLUMN UNFORTUNATELY MS ALLEN'S PIECE MAY MISLEAD UNWARY READERS ON SEVERAL COUNTS ADOPTION ESSENTIALLY AN INVENTION OF US STATE LAW IS MORE THAN 300 YEARS OLD IT WAS NOT SET UP DECADES AGO ADOPTION WAS NOT CREATED ONLY FOR INFANTS BORN TO UNWED MOTHERS BUT FOR ALL CHILDREN IN NEED OF NEW PERMANENT LEGAL PARENTS THE ALLEGED DECLINE IN THE STIGMA OF UNWED PARENTHOOD HAD NOTHING TO DO WITH THE BABY JESSICA CASE EVERYONE INVOLVED KNEW CARA CLAUSEN WAS UNMARRIED AND PREGNANT NOT JUST NOW BUT BEFORE THE LATE '60S ADOPTIONS OF INFANTS BORN OUT OF WEDLOCK CONSTITUTED THE MINORITY OF ADOPTIONS SOCALLED OPEN ADOPTIONS ACTUALLY ARRANGEMENTS WHERE WOMEN DIRECTLY NEGOTIATE ADOPTION WITH PROSPECTIVE PARENTS PREDATE THE PAST TWO DECADES THEY ARE NOTHING NEW EXCEPT FOR THE CLEVER MARKETING THAT SURROUNDS THEM THE GREATEST CALAMITY IN ADOPTION LAW AND FOR THAT MATTER IN PRIVACY RIGHTS FOR WOMEN WAS INDEED THE 1972 SUPREME COURT RULING IN STANLEY V ILLINOIS THE RULING IS WIDELY MISUNDERSTOOD AS GRANTING ALL MALE BIOLOGICAL PARENTS THE RIGHT TO VETO ADOPTIONS THE YEAR BEFORE THE SUPREME COURT DECIDED ROE V WADE WHICH HELD THAT A WOMAN'S PRIVACY RIGHTS ENABLED HER TO MANAGE HER PREGNANCY BY CHOOSING AN ABORTION STANLEY HELD THAT A WOMAN'S PRIVACY RIGHTS COULD BE INVALIDATED IF SHE DECIDED TO MANAGE HER PREGNANCY BY CHOOSING AN ADOPTION LATER RULINGS BY THE SUPREME COURT WENT FURTHER WHILE EVEN A HUSBAND COULD NOT LEGALLY INTERFERE WITH AN ABORTION DECISION A MAN SHE HAD BEEN INVOLVED WITH ON ONLY ONE OCCASION AND WHO HAD THEN DISAPPEARED COULD BLOCK HER ADOPTION DECISION THE SUPREME COURT HAD TILTED IN FAVOR OF PRIVACY BUT AGAINST PRIVACY IF THE CHOICE WAS ADOPTION MOST WOMEN UNDERSTANDABLY CONTINUED TO MANAGE THEIR PREGNANCIES AS IF THE LAW WERE CONSISTENT THEY GENERALLY DECLINED TO NAME THE SPERM FATHER EVEN IF THAT MEANT SETTING UP AN ADOPTION THROUGH A LAWYER INSTEAD OF A LICENSED ADOPTION AGENCY A FEW AVAILED THEMSELVES OF THEIR CONSTITUTIONAL RIGHT TO TRAVEL AND WENT TO JURISDICTIONS OUTSIDE THE US WHERE SENSIBLY SPERM FATHERS HAD NO RIGHTS MOST SPERM FATHERS ARE NOT THWARTED FATHERS THEY DISAPPEAR AT THE FIRST HINT OF A PREGNANCY AND THE RESULTING RESPONSIBILITIES LEGAL ECONOMIC MORAL AND SOCIAL TRUE FATHERHOOD ENTAILS FOR THE TINY PERCENTAGE OF RESPONSIBLE INVOLVED MALES WHO ACTUALLY ARE THWARTED IN THEIR ATTEMPTS TO PLAY A ROLE THE LAW PROVIDES MUCH MORE OF A ROLE IN THE ADOPTION SCENARIO THAN IF ABORTION IS CHOSEN THE DETAILS OF CARA CLAUSEN'S ADOPTION DECISION ARE MUCH MORE COMPLEX THAN MS ALLEN'S PIECE SUGGESTS THE EARLY SIGNATURE IN MS CLAUSEN'S CASE WHILE INAPPROPRIATE BECAUSE OF THE LAW WAS NOT AN ISSUE TO OVERTURN THE ADOPTION THE COURTS NEVER CHALLENGED THE VALIDITY OF MS CLAUSEN'S CONSENT PARTICULARLY SINCE SHE HAD TWO WEEKS IN WHICH TO REVOKE HER CONSENT AND DID NOT TAKE ADVANTAGE OF IT MANY WOMEN WANT TO RESOLVE THE ADOPTION BEFORE LEAVING THE HOSPITAL BUT CURRENT HOSPITAL POLICY REQUIRES PATIENT DISCHARGES WELL BEFORE THE THREE OR FIVEDAY PERIOD THAT WAS COMMON WHEN MOST CURRENT ADOPTION STATUTES BECAME EFFECTIVE IN FACT HOSPITAL EMPLOYEES HAVE SAID THAT IT WAS MS CLAUSEN WHO WANTED TO SIGN THE PAPERS EARLY SO SHE COULD GO HOME AND NOT WORRY ABOUT THE ADOPTION ANYMORE THERE IS NO EVIDENCE OF COERCION OR PRESSURE FROM THE ATTORNEY TO SIGN EARLY THE GENERAL PRINCIPLE UNDERLYING IOWA AND MICHIGAN LAW IS NOT A NOBLE ONE THAT PRINCIPLE MAKES CHILDREN CHATTEL AND REFUSES TO RECOGNIZE THAT WHEN ONE DECIDES A CHILD'S FUTURE THE CHILD'S BEST INTERESTS MUST BE PARAMOUNT BEST INTERESTS HARDLY BOIL DOWN TO PRESUMED FITNESS FOR LAWYERS AND PRESUMED UNFITNESS FOR TRUCK DRIVERS AS MS ALLEN SEEMS TO SUGGEST 9309130025 930913 WHO'S NEWS MARQUETTE ELECTRONICS INC MARQUETTE ELECTRONICS INC MILWAUKEE BARRY K ALLEN THE 44YEAROLD FORMER PRESIDENT OF AMERITECH'S ILLINOIS BELL TELEPHONE CO UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF MEDICAL DIAGNOSTIC EQUIPMENT AS PRESIDENT HE SUCCEEDS MICHAEL J CUDAHY 69 WHO WAS NAMED TO THE NEW POSTS OF CHAIRMAN AND CHIEF EXECUTIVE 9309130024 930913 DOMESTIC AUTO MAKERS REPORT VEHICLE OUTPUT LAST WEEK FELL 158 DETROIT THE 10 DOMESTIC AUTO MAKERS SAID THEY BUILT A COMBINED ESTIMATED TOTAL OF 155272 CARS AND TRUCKS LAST WEEK DOWN 158 FROM 184433 VEHICLES BUILT IN THE SAME WEEK A YEAR AGO AUTO MAKERS BLAME THE LABOR DAY HOLIDAY FOR THE LOWER OUTPUT COMPARED WITH THE YEARAGO PERIOD GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP HAVE SCHEDULED OVERTIME THIS WEEK AT SEVERAL US AND CANADIAN ASSEMBLY PLANTS LAST MONTH THE AUTO MAKERS BUILT A TOTAL OF 796309 VEHICLES AN INCREASE OF 56 FROM THE 754305 UNITS BUILT IN AUGUST LAST YEAR 9309130023 930913 INTERNATIONAL AGRICULTURAL CRISIS IN MEXICO DEEPENS AS MORE FARMERS FACE LOAN DELINQUENCY BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICO IS FACING ITS WORST AGRICULTURAL CRISIS IN 50 YEARS A SLUGGISH DOMESTIC ECONOMY REDUCED SUBSIDIES AND FOREIGN COMPETITION ARE BEARING DOWN HARD ON THE MEXICAN FARMER BANKS ARE SEIZING PROPERTY FROM FARMERS DELINQUENT ON LOANS MANY OF WHICH ARE AT HIGH INTEREST RATES ESTIMATES OF FARM LOANS IN DEFAULT RANGE FROM 13 BILLION TO AS HIGH AS 4 BILLION MIGUEL DUENAS WORKS HIMSELF INTO A SWEATY HUFF EXPLAINING HOW HIS TRACTOR USED BY SIX FAMILIES WAS SEIZED WHEN HIS BANK LOAN WENT INTO ARREARS THEY LIKE TO SAY WE'RE LAZY BUT WE WANT TO WORK OUR LAND SAYS THE 60YEAROLD MELON GROWER WITHOUT THE TRACTOR WE CAN'T TALES LIKE THAT OF MR DUENAS ARE BEING TOLD REPEATEDLY IN A GROWING TENT CITY THAT HAS SPRUNG UP IN THE CENTRAL PLAZA HERE IN FRONT OF THE NATIONAL PALACE AGRICULTURE IS OF COURSE SUFFERING AROUND THE WORLD BUT IN MEXICO ABOUT 30 OF THE POPULATION OF 85 MILLION MAKES ITS LIVING OFF THE FARM IN THE US A SCANT 3 OF THE POPULATION DEPENDS ON THE FARM WHILE STABLE FOOD PRICES HAVE HELPED TO BRING MEXICO'S ONCE TRIPLEDIGIT INFLATION RATE DOWN TO A SINGLE DIGIT THE COST OF THE FARMER'S PRODUCTION HAS ONLY RISEN FOR MARI DE LA CRUZ CASTREJON A BANANA FARMER FROM MEXICO'S WESTERN COAST THAT MEANS A KILO OF BANANAS FETCHES ONLY A THIRD OF ITS COST OF PRODUCTION WHEN THEY OPENED BORDERS THE PRICES FELL SAYS MRS DE LA CRUZ CASTREJON IF THE NORTH AMERICAN FREE TRADE AGREEMENT IS SIGNED WE'LL BE SLAVES TO YOU SHE TELLS US VISITORS SITTING IN HER GREEN PLASTIC TENT YOU'LL BE GETTING OUR GOOD LAND UNLESS A SOLUTION IS REACHED MEXICAN FARMERS SAY THEY'LL HOLD THE CENTRAL PLAZA HOSTAGE THROUGH WEDNESDAY WHEN THE COUNTRY CELEBRATES ITS MOST IMPORTANT HOLIDAY THAT'S WHEN PRESIDENT CARLOS SALINAS DE GOTARI REENACTS THE GRITO OR CRY OF INDEPENDENCE FROM SPAIN BEFORE ELEGANTLY ATTIRED GUESTS INSIDE THE NATIONAL PALACE WHILE A COMMONMAN REVELRY TAKES PLACE IN THE PLAZA SAYS THE PLUCKY MRS DE LA CRUZ CASTREJON IF THEY WANT THE GRITO HERE THEY'LL HAVE TO RESOLVE THE PROBLEM THE FARMERS PROVIDE A PARTICULARLY DELICATE PROBLEM FOR OTHER REASONS AS WELL CAMPESINOS ARE THE ROMANTICIZED VICTORS OF THE 1910 MEXICAN REVOLUTION WHOSE PEASANT LEADER EMILIANO ZAPATA LED THE CHARGE FOR AGRARIAN REFORM BUT TODAY'S FARMING FAILURES ONLY PROPEL MORE ILLEGAL IMMIGRATION TO THE US SHAKING HIS BANK PAPERS MR DUENAS SAYS THIS IS WHY YOU SEE SO MANY PEOPLE GOING TO THE US WITH THE MAGNITUDE OF THE FARM PROBLEM IT WAS NO SURPRISE WHEN PRESIDENT SALINAS WAS BERATED LAST MONTH BY A FARMER IN THE GOVERNOR'S PALACE IN THE HUGE AGRICULTURAL STATE OF CHIHUAHUA SENOR PRESIDENTE REMEMBER IT WAS THE CAMPESINOS WHO STARTED THE REVOLUTION SAID THE FARMER AS FARMER RAGE HAS RISEN HERE THE MEXICAN GOVERNMENT HAS SAID IT WILL STOP SEIZURES BY ITS GOVERNMENT BANK WHICH HOLDS ABOUT A THIRD OF THE DELINQUENT LOANS BUT SEIZURE PROCEDURES THAT HAVE ALREADY BEEN PLACED INTO THE JUDICIAL PROCESS WILL CONTINUE SAYS LUIS TELLEZ AN AGRICULTURE MINISTRY UNDERSECRETARY SUCH A PLAN DOESN'T AFFECT THE FARM LOANS HELD BY MEXICO'S NEWLY PRIVATIZED BANKS OUR PROBLEM IS THAT INTERNATIONAL PRICES FOR FOOD PRODUCTS ARE ON THE FLOOR SAYS DR TELLEZ TO MAKE MATTERS WORSE LAST WEEK THE US PROPOSED NEW SANITARY RULES ON MEXICAN CATTLE EXPORTS THE MOVE WHICH WOULD REQUIRE LENGTHIER INSPECTIONS AND TESTS WILL SLOW THE EXPORT PROCESS AND AS A RESULT COULD CAUSE MEXICO'S 500 MILLION BEEF EXPORTINDUSTRY TO COLLAPSE SAY MEXICAN AGRICULTURAL OFFICIALS THEY SAY THE COSTS OF IMPLEMENTING THE NEW SCREENING MEASURES WOULD IMPOSE PROHIBITIVELY HIGH COSTS ON THE INDUSTRY MY IMPRESSION IS THAT THEY EXPORTS WOULD COLLAPSE SAID DR TELLEZ EVEN ON WALL STREET THE PROBLEMS ARE GETTING ATTENTION IN THE LAST FIVE YEARS MEXICO HAS BECOME THE HOTTEST CAPITALMARKET PLAY SOUTH OF THE RIO GRANDE BUT ANALYSTS ARE PONDERING HOW LONG THE BAD LOANS HELD BY THE PRIVATE BANKS WILL BE ON THE BOOKS POLITICALLY THIS IS A BIG CHALLENGE FOR THE SALINAS ADMINISTRATION SAYS RAFAEL BELLO A MORGAN STANLEY ANALYST BUT THE BANKS AREN'T TO BLAME 9309130022 930913 TECHNOLOGY RESEARCHERS GET APPROVAL FROM PANEL FOR TEST ON GENE THERAPY AGAINST HIV BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO GOT A GREEN LIGHT FROM THE FEDERAL RECOMBINANT DNA ADVISORY COMMITTEE TO CONDUCT A SAFETY TEST OF A NEW GENE THERAPY AGAINST HUMAN IMMUNODEFICIENCY VIRUS OR HIV THE PROPOSED CLINICAL TEST IS THE SECOND PROPOSED GENE THERAPY AGAINST HIV THE VIRUS THAT CAUSES AIDS TO RECEIVE THE COMMITTEE'S APPROVAL STILL PENDING IS APPROVAL BY THE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH AND THE FOOD AND DRUG ADMINISTRATION RESEARCHERS FLOSSIE WONGSTAAL AND DAVID LOONEY AND THEIR COLLEAGUES AT THE UNIVERSITY PLAN TO RECRUIT SIX HIVPOSITIVE VOLUNTEERS TO RECEIVE A SINGLE DOSE OF GENETICALLY ALTERED CELLS THIS INITIAL DOSE IS SOLELY FOR PURPOSES OF ASSESSING SAFETY AND WILL PROBABLY NOT BE ENOUGH TO AFFECT PROGRESSION OF THEIR DISEASE THE UNIVERSITY CAUTIONED IN A STATEMENT DR WONGSTAAL WHO FORMERLY WORKED IN THE LABORATORY OF ROBERT GALLO OF THE NATIONAL CANCER INSTITUTE PLANS TO DRAW VOLUNTEERS' BLOOD AND ISOLATE CERTAIN WHITE BLOOD CELLS TO USE AS CARRIERS FOR A THERAPEUTIC GENE THEN THESE BLOOD CELLS WILL THEN BE REINFUSED INTO THE PATIENTS AT THE HEART OF THE THERAPY IS A MOLECULE DISCOVERED LAST YEAR BY DR WONGSTAAL AND COLLEAGUES THAT CAN THWART THE AIDS VIRUS BY CUTTING ITS GENETIC MATERIAL KNOWN AS RNA OR RIBONUCLEIC ACID ONCE INSERTED INTO THE BLOOD CELLS THE MOLECULE KNOWN AS A HAIRPIN RIBOZYME INHIBITS THE VIRUS IN TWO WAYS BY PREVENTING HIV FROM INFECTING NEW CELLS AND ALSO BY DISABLING HIV INSIDE AN ALREADYINFECTED CELL SO THAT NEW COPIES OF THE VIRUS CAN'T BE RELEASED TO SPREAD THE INFECTION PENDING FINAL APPROVALS THE SAFETY TRIAL SHOULD BEGIN WITHIN THE YEAR AS A PRELUDE TO A LARGER STUDY OF THE TREATMENT'S EFFECTIVENESS THE UNIVERSITY SAID DR WONGSTAAL SAID IN A STATEMENT SHE BELIEVES AT ITS ROOT HIV IS A GENETIC DISEASE THE VIRUS INTEGRATES ITSELF INTO THE GENETIC CODE OF THE INFECTED CELL THIS MAKES US HOPEFUL THAT THERE MAY BE AN EFFECTIVE TREATMENT FOR HIV AT THE GENETIC LEVEL AMONG THE MANY HURDLES FACED BY GENE THERAPY RESEARCHERS IS THE SEARCH FOR A LONGERLASTING METHOD TO DELIVER AND MAINTAIN THE THERAPEUTIC GENE IN THE BODY TO THIS END DR WONGSTAAL'S GROUP IS ALSO WORKING ON THE NEXT STAGE OF THEIR PROJECT TO INSERT THE HAIRPIN RIBOZYME INTO LONGLASTING STEM CELLS STEM CELLS WHICH GIVE RISE TO ALL OF THE BODY'S RED AND WHITE BLOOD CELLS CAN SURVIVE FOR DECADES IN THE BLOODSTREAM POTENTIALLY SUSTAINING THE GENE THERAPY FOR THE LIFETIME OF A PATIENT 9309130021 930913 BUSINESS BRIEF CIE DE SUEZ SA BANK UNIT'S SIXMONTH NET INCREASED NEARLY FOURFOLD BANQUE INDOSUEZ A BANKING UNIT OF FRANCE'S CIE DE SUEZ SA FINANCIAL GROUP SAID FRIDAY IT MADE A NET PROFIT OF 320 MILLION FRANCS 568 MILLION IN THE FIRST SIX MONTHS OF THIS YEAR NEARLY FOUR TIMES THE PROFIT OF 81 MILLION FRANCS A YEAR EARLIER THE PARIS BANK ATTRIBUTED THE SHARP INCREASE TO A 59 RISE IN ITS OPERATING INCOME TO 263 BILLION FRANCS AND TO AN 80MILLIONFRANC DECLINE IN NEW PROVISIONS TO 131 BILLION FRANCS IT NOTED THAT ITS FIRSTHALF PERFORMANCE WASN'T HELPED BY EXCEPTIONAL ITEMS WHICH AMOUNTED TO 13 BILLION FRANCS FOR 1992 TOTAL INCOME ADVANCED 178 IN THE FIRST SIX MONTHS OF 1993 FROM A YEAR EARLIER WHILE OPERATING EXPENDITURES HELD STEADY THE COMPANY CITED PROFITABILITY OF ITS MARKET OPERATIONS THANKS TO THE VOLATILITY OF INTEREST AND EXCHANGE RATES AND HEAVY TRADING VOLUME IN THE MARKETS 9309130020 930913 MARKETING BRIEF NEW YORK TIMES CO CUSTOMPUBLISHING DIVISION TO PRODUCE USAIR MAGAZINE NEW YORK TIMES CO SAID ITS CUSTOMPUBLISHING DIVISION WILL TAKE OVER PRODUCTION OF USAIR'S INFLIGHT MAGAZINE STARTING WITH THE JANUARY ISSUE TERMS OF THE DEAL WEREN'T DISCLOSED USAIR MAGAZINE WHICH HAS BEEN PRODUCED FOR THE AIRLINE BY A SERIES OF OUTSIDE PUBLISHERS SINCE ITS DEBUT IN 1979 WILL BE REVAMPED SAID A NEW YORK TIMES SPOKESMAN JAMES CUTIE PRESIDENT OF THE TIMES COMPANY'S INFORMATION SERVICES GROUP WHICH OVERSEES CUSTOM PUBLISHING SAID THAT MOST OF THE ARTICLES IN THE MAGAZINE WILL BE NEW COMMISSIONED MATERIAL BUT THEY WILL BE MIXED WITH NEW YORK TIMES FEATURES SUCH AS COLUMNS AND CROSSWORD PUZZLES ALSO ARTICLES WILL BE REPRINTED FROM THE PARENT COMPANY'S OTHER MAGAZINES INCLUDING TENNIS AND GOLF DIGEST 9309130019 930913 CHRYSLER DISTANCES ITSELF FROM PROJECT TO CREATE ELECTRIC CAR WITH FORD GM BY DOUGLAS LAVIN AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL CHRYSLER CORP SAID PUBLICLY FOR THE FIRST TIME THAT IT DOESN'T INTEND TO COLLABORATE WITH GENERAL MOTORS CORP AND FORD MOTOR CO IN WHAT WAS ONCE PORTRAYED AS A JOINT EFFORT BY THE BIG THREE TO PRODUCE AN ELECTRIC CAR IN RESPONSE TO QUESTIONS ABOUT A DETROIT NEWS REPORT THAT IT WAS BACKING OUT OF THE PROJECT CHRYSLER CHAIRMAN ROBERT J EATON SAID WE HAVE NEVER HAD ANY PLANS TO JOIN IN MR EATON WHO WAS IN TRIBURG GERMANY SAID FRIDAY THE PROJECT HAD NEVER PROCEEDED BEYOND THE DISCUSSION STAGE AND CONTINUED TO FACE MANY HURDLES SINCE FORMING A CONSORTIUM THREE YEARS AGO TO STUDY BATTERY TECHNOLOGY THE BIG THREE HAVE TALKED ABOUT THE POSSIBILITY OF JOINTLY BUILDING AN ELECTRIC VEHICLE THAT WOULD MEET CALIFORNIA RULES REQUIRING THE SALE OF ZEROEMISSION VEHICLES BY 1998 BUT MR EATON'S REMARKS CONFIRMED WHAT OTHERS INVOLVED IN THE TALKS HAVE BEEN SAYING PRIVATELY THAT COLLABORATIVE EFFORTS AMONG THE BIG THREE CONTINUE TO BE MARRED BY LONGRUNNING RIVALRIES AND FUNDAMENTAL DIFFERENCES IN PHILOSOPHIES ALTHOUGH IT DIDN'T RULE OUT THE POSSIBILITY OF FUTURE TALKS CHRYSLER'S RELUCTANCE REPRESENTS A SHIFT FROM WHERE THE BIG THREE SEEMED TO STAND IN JUNE WHEN FORD CHAIRMAN HAROLD RED POLING CLAIMED THEY WERE ON THE VERGE OF MAKING A JOINT ANNOUNCEMENT ABOUT THEIR ELECTRICVEHICLE DISCUSSIONS A FORD SPOKESWOMAN SAID THE COMPANY HADN'T HEARD FROM CHRYSLER I THINK THE TALKS HAVE BEEN UNDER WAY FOR QUITE SOME TIME AND AT CERTAIN POINTS THEY HAVE BEEN CLOSER THAN AT OTHER POINTS SHE SAID A SPOKESWOMAN FOR GM SAID THAT WHILE THE AUTO MAKER ALSO HAD NOT HEARD FROM CHRYSLER THE POSSIBILITY FOR FURTHER TALKS EXISTS CHRYSLER HOWEVER APPEARS MORE COMMITTED TO ITS OWN ELECTRIC VEHICLE EFFORTS ALTHOUGH IT CONTINUES TO COOPERATE ON JOINT RESEARCH EFFORTS THROUGH THE US ADVANCED BATTERY CONSORTIUM WHICH RECEIVES FUNDING FROM THE AUTO MAKERS UTILITY COMPANIES AND THE FEDERAL GOVERNMENT WE HAVE ESTABLISHED OUR DIRECTION AND WE ARE GOING WITH IT SAID MR EATON HE SAID THE AUTO MAKERS CANNOT EVEN AGREE ON WHAT TYPE OF BATTERY TECHNOLOGY TO PURSUE CHRYSLER FOR EXAMPLE FAVORS THE ELECTRIC VEHICLE IT HAS DEVELOPED OUT OF ITS MINIVAN PLATFORM AND WILL SELL FOR 120000 THE VEHICLE POWERED BY NICKELIRON BATTERIES HAS RECEIVED THE APPROVAL OF CALIFORNIA REGULATORS CHRYSLER HAS SAID IT ALSO IS WILLING TO INVESTIGATE OTHER BATTERY FORMATS FORD HOWEVER IS STICKING WITH A SODIUMSULFUR BATTERY IT INVENTED DECADES AGO THE COMPANY IS USING THE BATTERY TO POWER VEHICLES IT DEVELOPED OUT OF A SMALL TRUCK IT SELLS IN EUROPE GM MEANWHILE IS PUTTING ITS FAITH IN LEADACID BATTERIES AS IT STICKS TO ITS COUPESTYLED IMPACT A CAR THAT ONCE WAS SLATED FOR MASS PRODUCTION BUT IS NOW ON HOLD 9309130018 930913 MARKETING & MEDIA GM'S CHEVROLET DIVISION IS DROPPING ITS HEARTBEAT OF AMERICA' AD CAMPAIGN BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS GENERAL MOTORS CORP'S CHEVROLET DIVISION IS DUMPING ITS FAMILIAR HEARTBEAT OF AMERICA ADVERTISING SLOGAN AND HOPING TO WIN NEW CUSTOMERS BY STRESSING QUALITY VALUE AND NEW SERVICES SUCH AS FREE TRANSPORTATION FOR BUYERS WHO BRING THEIR CARS TO DEALERS FOR WARRANTY WORK JIM PERKINS CHEVROLET'S GENERAL MANAGER SAID THE HEARTBEAT CAMPAIGN HAS RUN ITS COURSE AND THAT AN UPDATED THEME IS NEEDED WE HELD ON TO THE HEARTBEAT' AD LINE AS LONG AS WE THOUGHT WE COULD HE SAID IT WAS LOSING ITS GRIP A NEW AD CAMPAIGN WILL BE UNVEILED NEXT SPRING WHEN CHEVROLET INTRODUCES ITS REDESIGNED LUMINA AND MONTE CARLO CARS MR PERKINS SAID IN THE MEANTIME CHEVROLET WILL STICK WITH ITS LIKE A ROCK TRUCK SLOGAN AND THE GET TO KNOW GEO SLOGAN FOR ITS LINE OF SMALL CARS THE GOAL OF CHEVROLET'S NEW MARKETING PROGRAMS MR PERKINS SAID IS TO ASK CUSTOMERS NOT TO BUY ANOTHER CAR WITHOUT LOOKING AT A CHEVROLET IT WAS THE CONSENSUS OF CONSUMERS OUR DEALERS AND OUR OWN MARKETING PEOPLE THAT IT IS TIME TO SIGNAL A NEW CHEVROLET THE DIVISION MUST TRANSFORM ITSELF IF IT HOPES TO REGAIN THE MARKET SHARE IT LOST DURING THE 1980S CHEVROLET'S SALES HAVE INCREASED 89 THIS YEAR THROUGH AUG 31 TO 1570772 VEHICLES BUT IN 1985 THE DIVISION HAD SOLD A WHOPPING 1988576 CARS AND TRUCKS THROUGH THE FIRST EIGHT MONTHS OF THAT YEAR FOR ALL OF 1993 MR PERKINS SAID CHEVROLET WILL SELL SLIGHTLY MORE THAN 23 MILLION CARS AND TRUCKS UP 95 FROM 1992 SALES IN 1994 THE DIVISION EXPECTS TOTAL VEHICLE SALES TO REACH 24 MILLION CHEVY OWES MUCH OF ITS RECENT SALES SUCCESS TO THE VALUE PRICING MARKETING STRATEGY WHICH OFFERS BETTEREQUIPPED CARS AT LOWER PRICES PUSHED BY AN ADVERTISING CAMPAIGN THAT TOUTED PRICES AS LOW AS 7620 FOR A CAR WITH STANDARD ANTILOCK BRAKES SALES OF THE 12YEAROLD CHEVROLET CAVALIER HAVE SHOT UP SO FAR THIS YEAR THE CAVALIER IS THE NO 3 SELLING CAR IN THE COUNTRY EVEN THOUGH ITS STYLING IS OUTDATED CUSTOMERS WANT VALUE FOR THEIR MONEY MR PERKINS SAID BUT CLEARLY THE DIVISION NEEDS TO DO MORE THAN CUT PRICES TO SUSTAIN A REBOUND CHEVROLET OFFICIALS SAID THAT ITS PRODUCTS AND CUSTOMER PROGRAMS WILL FURTHER BOLSTER SALES MR PERKINS SAID CHEVROLET WILL OFFER FREE TRANSPORTATION TO ALL BUYERS OF 1994 CHEVROLET AND GEO CARS AND TRUCKS WHOSE VEHICLES ARE BROUGHT TO DEALERSHIPS FOR WARRANTY SERVICE UNDER THE PROGRAM OWNERS ARE REIMBURSED FOR A BORROWED CAR RENTAL CAR OR PUBLIC TRANSPORTATION AS WELL AS FUEL EXPENSES DURING THE TIME THEIR VEHICLE IS BEING SERVICED OWNERS WHOSE VEHICLES ARE BEING REPAIRED MAY ALSO GET A FREE SHUTTLE RIDE TO WORK FROM THE DEALERSHIP UP TO 10 MILES CHEVROLET FACES SOME TOUGH TIMES AHEAD THE DIVISION WON'T HAVE A REDESIGNED LUMINA CAR UNTIL NEXT SPRING AND IT WON'T INTRODUCE ITS ALLNEW CAVALIER AND GEO METRO UNTIL THE FALL OF 1994 THIS IS INDEED A TRANSITION YEAR FOR US MR PERKINS ACKNOWLEDGED CHEVY DOES INTRODUCE THIS FALL ITS ALLNEW S10 SERIES OF COMPACT PICKUP TRUCKS WHICH ARE BIGGER AND MORE POWERFUL THAN THEIR PREDECESSORS CHEVROLET EXPECTS TO SELL 225000 OF THE PICKUPS DURING THE 1994 MODEL YEAR WHICH BEGINS IN OCTOBER COMPARED WITH SALES OF 191000 DURING THE 1993 MODEL YEAR THE DIVISION SAID IT WILL INTRODUCE IN FEBRUARY THE IMPALA SS SEDAN IT WILL BE THE FIRST TIME SINCE 1969 THAT CHEVROLET HAS USED THE IMPALA NAME THE CAR WILL SPORT A CORVETTE ENGINE WITH 260 HORSEPOWER 9309130017 930913 OPINION RESEARCH OFFERING TO RAISE UP TO 165 MILLION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL SKILLMAN NJ LEADING MARKET RESEARCH AND INFORMATION SERVICES FIRM OPINION RESEARCH CORP PLANS TO COME TO MARKET SOON WITH AN INITIAL PUBLIC OFFERING EXPECTED TO RAISE BETWEEN 135 MILLION AND 165 MILLION THE CONSUMER BUSINESS AND PUBLIC OPINION POLLING CONCERN WILL USE PROCEEDS TO FINANCE A RECENT ACQUISITION AND TO EXPAND ITS OPERATIONS PARTICULARLY OVERSEAS OPINION RESEARCH IS CONCENTRATING ON HIGHERMARGIN PROJECTS THAT REQUIRE PERIODIC UPDATING AND TRACKING OF INFORMATION ACCORDING TO THE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SUCH PROJECTS ACCOUNTED FOR 43 OF REVENUE IN THE FIRST HALF OF 1993 UP FROM 5 IN 1989 THE COMPANY ACQUIRED FOR 9 MILLION IN A 1991 MANAGEMENTLED BUYOUT FROM ARTHUR D LITTLE INC CAMBRIDGE MASS COLLECTS CUSTOMER AND MARKET INFORMATION FOR BUSINESSES THROUGH TELEPHONE INTERVIEWS MAIL QUESTIONNAIRES AND OTHER METHODS HEADED BY CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL R COOPER 47 YEARS OLD OPINION RESEARCH EMPLOYS ABOUT 112 FULLTIME EMPLOYEES IN THE US AND UK AND MORE THAN 1000 PARTTIME HOURLY EMPLOYEES WHO WORK AS TELEPHONE OPERATORS AND DATA PROCESSORS ITS LARGEST CLIENT THE US POSTAL SERVICE ACCOUNTED FOR 18 OF REVENUE LAST YEAR AMONG ITS PROJECTS FOR THE POSTAL SERVICE OPINION RESEARCH DISTRIBUTES 900000 MAIL SURVEYS A YEAR ON CUSTOMER SATISFACTION IN 1992 THE COMPANY HAD REVENUE OF 21 MILLION AND NET INCOME OF 441000 ON A PRO FORMA BASIS INCLUDING THE RECENT ACQUISITION REVENUE WAS 289 MILLION AND NET INCOME WAS 13 MILLION OR 30 CENTS A SHARE AFTER THE OFFERING THE COMPANY WILL HAVE 43 MILLION COMMON SHARES OUTSTANDING WHICH WOULD VALUE IT AT 43 MILLION BASED ON AN ASSUMED 10 A SHARE OFFERING PRICE THE COMPANY WILL SELL 15 MILLION SHARES AND CERTAIN SHAREHOLDERS WILL SELL ANOTHER 400000 PRINCIPALLY ARTHUR D LITTLE INC WHICH WILL SELL 275000 SHARES AND REDUCE ITS HOLDINGS TO 1 OF THE COMPANY UNDERWRITERS ARE ADVEST INC AND LADENBURG THALMANN & CO IN ADDITION TO PROJECTS FOR CORPORATE CLIENTS FOR MORE THAN 30 YEARS THE POLLING FIRM HAS CONDUCTED WEEKLY CARAVAN TELEPHONE SURVEYS WITH COSTS SHARED BY CLIENTS THE CARAVAN SURVEY IS SCHEDULED TO BE INTRODUCED TO EUROPE LATE THIS YEAR DEMAND FOR INFORMATION ABOUT FOREIGN MARKETS AND BUSINESSES HAS SPURRED OPINION RESEARCH TO EXPAND ABROAD LAST MONTH THE COMPANY ACQUIRED GORDON SIMMONS RESEARCH GROUP LTD A UKBASED MARKET RESEARCH FIRM WHOSE CLIENTS IN 1992 INCLUDED THE EUROPEAN OPERATIONS OF FORD MOTOR CO AND INTERNATIONAL BUSINESS MACHINES CORP 9309130016 930913 SMALL STOCK FOCUS WOES AT LILLY GIVE A BOOST TO ZOLL SHARES BY WILLIAM POWER AND THOMAS M BURTON STAFF REPORTERS OF THE WALL STREET JOURNAL ZOLL MEDICAL MAKES DEFIBRILLATORS THE ELECTRICPOWERED DEVICES USED TO JUMPSTART HEARTS LATELY IT SEEMS AS IF SOMEONE HAS HOOKED UP A DEFIBRILLATOR TO ZOLL STOCK SHARES OF THE BURLINGTON MASS COMPANY SHOT UP 5 THURSDAY AND AN ADDITIONAL 5 FRIDAY ON THE NASDAQ MARKET TO A RECORD CLOSE OF 36MORE THAN TRIPLE LAST YEAR'S INITIAL PUBLIC OFFERING PRICE OF 10 FOR MONTHS ZOLL'S STOCK HAS BEEN RISING AS TROUBLES HAVE MOUNTED FOR A COMPETITOR ELI LILLY'S PHYSIOCONTROL UNIT WHICH HAD BEEN FORCED TO STOP SHIPPING ITS OWN DEFIBRILLATORS BECAUSE OF MANUFACTURING PROBLEMS ZOLL FOR ITS PART IS ALSO TAKING CARE OF A SMALLER PRODUCTRECALL PROBLEM BUT WHAT ACCOUNTS FOR THE LATEST ZOLL ZOOM THE WORD LATE LAST WEEK AMONG BULLISH TRADERS WAS THAT THE LILLY UNIT HAS EVEN MORE PROBLEMS THAN IT HAS LET ON IT NEEDS FOOD AND DRUG ADMINISTRATION PERMISSION TO RESUME SHIPMENTS OF ITS LIFEPAK 9 MODEL DEFIBRILLATOR AND THE TRADERS CLAIM THE FDA HAS ISSUED A NEW CRITICAL REPORT TO THE COMPANY SUGGESTING THAT SHIPMENTS WILL BE HELD UP FOR SOME TIME THE REPORT HASN'T BEEN MADE PUBLIC YET IF SO NEITHER LILLY NOR THE FDA WOULD COMMENT FRIDAY THAT CAN ONLY BENEFIT ZOLL THE COMPANY IN JULY REPORTED THAT FISCAL NINEMONTH SALES INCREASED 79 TO 263 MILLION AND NET INCOME NEARLY TRIPLED TO 26 MILLION OR 41 CENTS A SHARE FOR THE THIRD QUARTER ENDED JUNE 26 PERSHARE EARNINGS JUMPED TO 17 CENTS FROM 10 CENTS UNTIL NOW MANY INVESTORS HAD BEEN EXPECTING ZOLLTRADING AT A PRICEY 68 TIMES THE PAST YEAR'S PERSHARE EARNINGSTO TUMBLE ONCE GIANT LILLY STRAIGHTENED OUT ITS PROBLEMS AND RESUMED REGULAR SHIPMENTS AS A REFLECTION OF THAT BEARISHNESS THE SHORT POSITION IN ZOLL SHARES BORROWED AND SOLD BY INVESTORS EXPECTING A DECLINE WAS 870070 SHARES AS OF MIDAUGUST OR A QUARTER OF THE ESTIMATED PUBLIC FLOAT LAST WEEK'S ADVANCE IN ZOLL SHARES PROBABLY INCLUDED SOME SHORTCOVERING OR BUYING BY SHORT SELLERS TO CLOSE OUT SOME OF THEIR BEARISH BETS THE COMPANY'S STOCKMARKET VALUE NOW EXCEEDS 225 MILLION WHETHER THE FDA REPORT IS SCATHING AS ONE TRADER CLAIMS OR MERELY ROUTINE IT DOESN'T SEEM AS IF LILLY WILL BE RESUMING SHIPMENTS OF ITS LIFEPAK 9 AS QUICKLY AS THE COMPANY'S SALESPEOPLE HAD HOPED LILLY'S PHYSIOCONTROL UNIT BASED IN REDMOND WASH VOLUNTARILY SUSPENDED SHIPPING LIFEPAK PRODUCTS IN MID1992 FOLLOWING AN FDA INSPECTION THE COMPANY SIGNED AN AGREEMENT STATING THAT IT MUST SATISFACTORILY UNDERGO REINSPECTION BY THE FDA PRIOR TO RESUMING OPERATIONS IN MAY THE FDA GAVE THE GOAHEAD TO RESUME SHIPMENTS OF A DIFFERENT MODEL LIFEPAK 10 BUT LILLY'S PUBLICRELATIONS PROBLEMS WORSENED AS THE RALPH NADER GROUP PUBLIC CITIZEN RECENTLY CALLED FOR CRIMINAL CHARGES FOR DEATHS ALLEGEDLY CAUSED BY LIFEPAK DEVICES THE FDA THEN SAID IT WOULD TAKE A VERY CLOSE LOOK AT THE GROUP'S COMPLAINT ZOLL OFFICIALS SAY THEY'RE NOT REJOICING IN LILLY'S WOES THEY ADD THAT THEY DON'T KNOW THEMSELVES WHAT THE LATEST FDA REPORT SAYS WE'VE HEARD ALL THE RUMORS SAYS DUANE DESISTO ZOLL'S CHIEF FINANCIAL OFFICER OUR REACTION IS WE'RE GOING TO WORRY ABOUT THE PIECE OF THE BUSINESS WE CAN CONTROL AND THAT'S US HE SAYS THAT FROM THE DAY ZOLL WENT PUBLIC IT HAS ASSUMED LILLY WOULD CONTINUE TO BE A VERY STRONG COMPETITOR AND THAT ASSUMPTION STILL HOLDS PERHAPS ZOLL IS CAUTIOUS BECAUSE IT HAS HAD EQUIPMENT PROBLEMS OF ITS OWN AND A RELATED STOCKPRICE DIVE THAT HAPPENED IN JUNE WHEN ZOLL STOCK TUMBLED 8 IN A DAY AFTER THE COMPANY RECALLED 100 TO 200 CARDIAC RESUSCITATION DEVICES MR DESISTO ON FRIDAY SAID THAT THE RECALL IS GOING WELL ASKED IF THE RECALL HAD EXPANDED TO INVOLVE MORE THAN 200 MACHINES MR DESISTO SUGGESTS THAT IT DID BUT WON'T GIVE AN EXACT NUMBER WE NOTIFIED MORE USERS THAN 200 JUST TO BE SAFE HE SAYS HE CALLS THE WHOLE THING A LONG TEDIOUS PROCESS INVOLVING A 4 PART THAT WON'T HAVE A MATERIAL IMPACT ON THE COMPANY CATHY BECKER AN ANALYST AT ALEX BROWN & SONS RECOMMENDS ZOLL STOCK REGARDLESS OF WHAT HAPPENS WITH THE FDA AND LILLY IT'S ALMOST IMPOSSIBLE FOR US TO BET AGAINST THE MOMENTUM WE SEE THE ANALYST SAYS SHE SAYS ZOLL MAKES SUPERIOR PRODUCTS THEY DON'T NEED LILLY OUT OF THE MARKETPLACE FOR A YEAR TO CONTINUE TO GAIN MARKET SHARE THEY DON'T NEED IT MS BECKER HAS HOWEVER DOWNGRADED HER OPINION ON ZOLL TO BUY FROM STRONG BUY CITING THE RECENT SHARP ACCELERATION IN THE STOCK PRICE THE RUSSELL 2000 INDEX A MEASURE OF THE SMALLEST STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES ROSE 194 OR 079 TO 24656 THE INDEX IS JUST BELOW ITS RECORD HIGH OF 24867 REACHED A WEEK EARLIER GOVERNMENT TECHNOLOGY SERVICES ROSE 1 3/4 TO 12 1/4 THE CHANTILLY VA COMPANY SAID IT IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT IT WILL EARN 125 TO 130 A SHARE IN 1993 UP FROM 91 CENTS A SHARE A YEAR EARLIER THE COMPANY RESELLS COMPUTER HARDWARE SOFTWARE AND NETWORKING PRODUCTS TO GOVERNMENT AGENCIES GERAGHTY & MILLER ROSE 1 OR 93 TO 1175 AFTER IT SAID IT WAS NEGOTIATING A POSSIBLE STOCKSWAP WITH HEIDEMIJ HOLDING NV WHICH WOULD MAKE IT A UNIT OF THE CLOSELY HELD DUTCH CONCERN THE ENVIRONMENTAL SERVICES COMPANY SAID NEGOTIATIONS ARE CONTINUING BUT NO DEFINITIVE AGREEMENT HAD BEEN REACHED THE TWO COMPANIES HAVE COMBINED ON AT LEAST ONE JOINT VENTURE IN THE PAST DATARAM AMEX ROSE 1 5/8 TO 9 3/8 THE PRINCETON NJ COMPANY SAID IT MAY REPURCHASE AS MANY AS 400000 COMMON SHARES A COMPANY OFFICIAL SAID DATARAM HAS 3807805 SHARES OUTSTANDING GENETIC THERAPY ROSE 1 1/4 TO 21 THE GAITHERSBURG MD COMPANY SAID THE RECOMBINANT DNA ADVISORY COMMITTEE OF THE NATIONAL INSTITUTES OF HEALTH HAS APPROVED A HUMAN GENE THERAPY TRIAL TO TREAT BRAIN TUMORS THE TRIAL IS EXPECTED TO BEGIN FOLLOWING APPROVAL BY THE FOOD AND DRUG ADMINISTRATION 9309130015 930913 FINANCING BUSINESS CMS ENERGY CORP CMS ENERGY CORP DEARBORN MICH SAID IT IS ISSUING UP TO FOUR MILLION NEW SHARES OF ITS COMMON STOCK THE UTILITY CURRENTLY HAS 81 MILLION COMMON SHARES OUTSTANDING PROCEEDS FROM THE SALE WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING DEBT RETIREMENT 9309130014 930913 LETTERS TO THE EDITOR WORDSMITHS OF THE WORLD FORGE AHEAD IN SPEECHWRITERS OF THE WORLD GET LOST MANAGER'S JOURNAL AUG 2 PHIL THEIBERT WAS RIGHT ON THE MONEY QUITE LITERALLY WHEN I WENT FROM BEING A CORPORATE SPEECHWRITER TO FREELANCE I HAD TO UNLEARN ALMOST ALL MY TRAINING NO INTOUCH EXECUTIVE WAS WILLING TO PAY HIS OR HER MONEY FOR A JFKSOUNDING ELOQUENT SPEECH WITH QUOTES FROM CHURCHILL AND ANECDOTES ABOUT HOW THOMAS EDISON PERSEVERED HECK EVEN LEE IACOCCA IS NOW TOO FAR BEHIND THE CURVE TO QUOTE ALSO I HAD TO STOP THINKING OF MY ROLE AS A CLEVER WORDSMITH WITH DOWNSIZING IT BECAME NECESSARY TO ALSO POSITION AND PACKAGE THE EXECUTIVES' POINT OF VIEW FEW NOW HAD THE STAFF TO WRITE UP THOSE POLICY PAPERS THAT USED TO PROVIDE THE PUBLICAFFAIRS MARCHING ORDERS IN ADDITION I HAD TO BECOME AN ADEPT INTERVIEWER TO FIND OUT HOW EXECUTIVES FELT IN THEIR GUT ABOUT THE ISSUES HOWEVER UNLIKE MR THEIBERT I'M CONVINCED THAT THERE'S A REAL NEED FOR SPEECHWRITERS AT LEAST NONELOQUENT ONES TODAY'S EXECUTIVES ARE SIMPLY TOO BUSY TO WRITE THEIR OWN MATERIAL IF THEY HAD THE TIME YES MOST OF THEM COULD BANG OUT TERRIFIC SPEECHES WE SPEECHWRITERS DON'T HAVE A MONOPOLY ON TALENT BUT EXECUTIVES DON'T HAVE THE TIME TO SPARE THAT'S WHY I'M STILL IN BUSINESS OUR PROFESSION THOUGH IS CHANGING OUR CUSTOMERS DEMAND MORE FROM US NOT JUST QUANTITATIVELY BUT QUALITATIVELY FOR INSTANCE THEY WANT A METAPHOR RIGHT UP THERE IN FRESHNESS WITH THE ENERGIZER BUNNY HUMOR THAT'S REALLY FUNNY AND A KNOWLEDGE OF TRENDS BOTH BUSINESS AND POP CULTURE THEIR SURVIVAL DEPENDS ON HOW WELL THEY COMMUNICATE IF WE CAN'T HELP THEM WITH THAT WE'RE GOING TO BE OUT OF BUSINESS IF IT'S TRUE AS MR THEIBERT CONTENDS THAT MOST OF THE SPEECHES TOP EXECUTIVES GIVE STINK ONE REASON MAY BE THAT THE EXECUTIVES ENTRUST THEIR PUBLIC STATEMENTS TO SECONDRATE TALENT LIKE MR THEIBERT HIS VIEW OF SPEECHWRITING IS APPALLINGLY ERRONEOUS AND SIMPLISTIC THE FACT IS MOST EXECUTIVES CAN'T WRITE THEIR OWN SPEECHES THEY DON'T HAVE THE TIME WHICH IS WHY THEY NEED SOMEONE TO GENERATE IDEAS FOR THEIR CONSIDERATION OR TO HELP THEM ELUCIDATE THEIR OWN AND THEY DON'T HAVE THE WRITING SKILLS EVEN IF THEY COULD COMPOSE FLAWLESSLY INTELLIGIBLE SENTENCES WHICH MOST CAN'T THEY USUALLY CAN'T ORGANIZE ANY TEXT LONGER THAN A PARAGRAPH SUCH THAT THE OVERALL STRUCTURE THUS THE MESSAGE IS EFFECTIVELY COMMUNICATED THERE IS NO DICHOTOMY BETWEEN BREVITY AND SIMPLICITY ON THE ONE HAND AND ELOQUENCE ON THE OTHER IN THIS AGE OF SOUND BITES AND SHORT ATTENTION SPANS BREVITY AND SIMPLICITY ARE ELOQUENCE MR THEIBERT'S DEFINITION OF ELOQUENCE WITTY QUOTES AND ANECDOTES IS MORE PROPERLY APPLIED TO ORNAMENTATION MR THEIBERT WRONGHEADEDLY ADVANCES THE FUNDRAISING SPEECH HERE ARE THE FACTS NOW ACT ON THEM AS THE ONE TRUE MODEL AS HE WOULD NO DOUBT LEARN IN A BASIC COURSE IN RHETORIC SPEAKER/TOPIC/AUDIENCE DYNAMICS ARE FAR MORE VARIED AND COMPLEX AND THE SPEECHWRITER MUST FIND THE STYLE TONE AND STRUCTURE THAT EFFECTIVELY RESPOND TO THE SITUATION AT HAND WHY NOT BARBERS OF THE WORLD GET LOST AFTER ALL WE ALL KNOW HOW TO USE A PAIR OF SCISSORS RIGHT THAT'S AN ANALOGY PHIL IT HELPS YOU MAKE YOUR POINT I CAN ONLY CONCLUDE THAT WHATEVER THEY'RE PAYING MR THEIBERT AT THAT LARGE WESTERN UTILITY IT'S TOO MUCH MR THEIBERT CLAIMS SPEECHWRITERS JUSTIFY THEIR JOBS BY PUTTING IN WITTY QUOTES AMUSING ANECDOTES AND REAMS OF STATISTICS SORRY MR THEIBERT YOU WEREN'T DESCRIBING SPEECHWRITERS JUST BAD SPEECHWRITERS BAD SPEECHWRITERS THINK BUSINESS SPEAKING ENGAGEMENTS ARE AN EXCUSE FOR TIRED GAGS WEAK PUNS AND LONG STORIES GOOD SPEECHWRITERS KNOW BUSINESS SPEAKING ENGAGEMENTS ARE ABOUT BUSINESS THEY WRITE SPEECHES THAT WILL MOTIVATE THE AUDIENCE TO ACT IN WAYS THEIR BUSINESS DESIRES MR THEIBERT ACKNOWLEDGES THIS BY SAYING THE GOAL OF A GOOD SPEECH IS CLEAR COMMUNICATION HE ADVISES EXECUTIVES TO FIRE THEIR WRITERS AND PREPARE THEIR OWN PRESENTATIONS USING BRIEF CONCISE IDEAS IN THE ANNALS OF THE OBVIOUS THIS GEM RANKS RIGHT UP THERE WITH BUY LOW SELL HIGH AS WITH ANY OTHER BUSINESS PROFESSIONAL THE SPEECHWRITER ADDS VALUE BY OFFERING EXPERTISE MOST PEOPLE FIND IT DIFFICULT TO REDUCE A COMPLICATED ISSUE TO A FEW BRIEF CONCISE IDEAS WANT PROOF READ THE NEXT MEMO THAT HITS YOUR DESK I HAVE YET TO WORK WITH A SINGLE INDIVIDUAL WHO WAS NOT CAPABLE OF DOING HIS OR HER OWN SPEECHWRITING THE ISSUE ISN'T WHO CAN DO THE JOB BUT RATHER HOW CAN THE WHOLE PROCESS OF RESEARCHING WRITING AND EDITING GET DONE BETTER FASTER AND WITH THE GREATEST ACCURACY NO ONE HAS EVER SERIOUSLY SUGGESTED THAT JAY LENO OR DAVID LETTERMAN PHASE OUT THEIR USE OF COMEDY WRITERS THOUGH BOTH ARE EMINENTLY CAPABLE OF PENNING ALL THEIR OWN JOKES OR THAT CONGRESSMEN SENATORS AND PRESIDENTS GIVE UP THEIR GHOSTS FOR SOME PUBLIC GOOD SIMILARLY NO POSSIBLE BENEFIT COULD COME FROM HAVING BUSINESS EXECUTIVES DO THEIR OWN SPEECHES ALL THE TIME WRITING FOR OTHERS WHEN DONE WELL IS BOTH HONORABLE AND AS LEGITIMATE AS ANY OTHER KIND OF CONFIDENTIAL BUSINESS OR MANAGEMENT CONSULTING 9309130013 930913 INTERNATIONAL ITALIANS ENGAGE IN FIERCE SELFSCRUTINY IN MIDST OF WIDE CORRUPTION SCANDALS BY PETER GUMBEL AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN AFTER A SUMMER OF DISCLOSURES ABOUT CORPORATE CORRUPTION INCLUDING ALLEGATIONS OF A 100 MILLION PAYOFF TO TOP POLITICIANS AND BRIBES PAID TO A LEADING JUDGE ITALY IS DEBATING WHETHER ITS ENTIRE CAPITALIST SYSTEM IS ROTTEN EVEN LEADING BUSINESS EXECUTIVES ARE PUBLICLY AGONIZING OVER THE ISSUE ACKNOWLEDGING THAT CORRUPTION IS SYSTEMIC IN ITALY AND DEMANDING DECISIVE ACTION TO CLEAN UP THE MESS THEY SAY THE TIME HAS COME TO END THE HEAVY POLITICAL INTERFERENCE LAX OVERSIGHT AND MURKY ETHICAL STANDARDS THAT CHARACTERIZE ITALIAN BUSINESS IN THE LONG RUN THEY ADD IT IS ITALIAN BUSINESS ITSELF THAT HAS THE MOST TO GAIN FROM A RADICAL OVERHAUL ITALIAN CAPITALISM NEEDS RULES SAID CARLO DE BENEDETTI THE CHAIRMAN OF ING C OLIVETTI & CO AND ONE OF ITALY'S BESTKNOWN EXECUTIVES SPEAKING AT A CONFERENCE OF BUSINESS LEADERS THIS MONTH IN CERNOBBIO MR DE BENEDETTI DESCRIBED THE ITALIAN SYSTEM AS PSEUDOCAPITALISM A TWILIGHT WORLD CHARACTERIZED BY OLIGOPOLIES AND CORRUPT TIES BETWEEN BUSINESS AND POLITICS RATHER THAN A TRULY OPENMARKET SYSTEM MARXISM REMAINS A POTENT POLITICAL FORCE IN ITALY AND SOME BUSINESS LEADERS FRET THAT SUCH CRITICISM BY CORPORATE LEADERS PLAYS INTO THE HANDS OF COMMUNIST THEORISTS MR DE BENEDETTI SAID IT WAS WRONG TO QUESTION CAPITALISM AS A SYSTEM BUT ADDED THE SEED OF A NONMARKET OF NONCOMPETITION HAS PENETRATED EVERYWHERE AND FOR TOO LONG IT'S EASY TO PREDICT THE CURE WILL BE LONG AND PAINFUL NOT EVERYONE AGREES IT'S DIFFICULT TO SAY THAT CAPITALISM DOESN'T EXIST IN ITALY WHEN WE ARE THE FIFTH INDUSTRIAL POWER IN THE WORLD RATHER LET'S SAY THAT THE STATE SYSTEM HAS FUNCTIONED POORLY PIETRO MARZOTTO CHAIRMAN AND CONTROLLING SHAREHOLDER OF A LARGE ITALIAN TEXTILE COMPANY TOLD THE CONFERENCE BUT IN REMARKS THAT ARE BEING ECHOED BY MANY HE ADDED WHAT IS NEEDED IS LESS STATISM AND MORE STATE IN THE SENSE OF IMPOSING CLEAR RULES ON THE GAME ITALIAN BUSINESS HAS TAKEN A SEVERE BATTERING IN THE PAST FEW MONTHS AS MAGISTRATES IN MILAN AND ELSEWHERE EXTENDED THEIR INVESTIGATIONS INTO POLITICAL AND CORPORATE CORRUPTION DOZENS OF LEADING EXECUTIVES FROM ITALY'S BIGGEST AND BESTKNOWN COMPANIES BOTH STATERUN AND PRIVATE HAVE BEEN ARRESTED OR TOLD THEY ARE UNDER INVESTIGATION FOR CORRUPTION THEY INCLUDE TOP OFFICIALS OF AUTO MAKER FIAT SPA ENTE NAZIONALE IDROCARBURI SPA OR ENI THE GIANT STATEOWNED ENERGY CONGLOMERATE CONSTRUCTION GROUP PREMAFIN FINANZIARIA SPA AND ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE OR IRI A STATERUN CONGLOMERATE THAT IS THE NATION'S BIGGEST COMPANY FOLLOWING THE ARREST OF ITS EXECUTIVES FIAT THIS YEAR INSTITUTED AN ETHICS POLICY EVEN MR DE BENEDETTI HAS CONCEDED THAT HIS COMPANIES PAID KICKBACKS TO GOVERNMENT OFFICIALS HE SAYS IT WAS IMPOSSIBLE TO WIN GOVERNMENT CONTRACTS WITHOUT MAKING PAYOFFS THE DISCLOSURES SEEMED AT FIRST TO BE ISOLATED INCIDENTS MAINLY INVOLVING STATE PROCUREMENT CONTRACTS BUT AS MORE SCANDALS HAVE SURFACED PARTICULARLY DETAILS OF THE SOCALLED ENIMONT AFFAIR SIGNS OF SYSTEMIC CORRUPTION HAVE EMERGED ENIMONT SPA WAS A SHORTLIVED JOINT VENTURE BETWEEN ENI AND FERRUZZI FINANZIARIA SPA'S MAIN CHEMICAL COMPANY MONTEDISON SPA THAT COLLAPSED TWO YEARS AFTER IT WAS SET UP IN 1988 ALLEGATIONS THAT A WHOPPING 100 MILLION WAS PAID IN BRIBES TO LEADERS FROM EVERY POLITICAL PARTY IN POWER WHEN MONTEDISON EVENTUALLY SOLD ITS STAKE IN ENIMONT BACK TO THE STATE HAVE BEEN THE MAIN FOCUS OF MILAN MAGISTRATES WHO ARE INVESTIGATING WHAT THE PRESS HAS DUBBED THE MOTHER OF ALL KICKBACKS MUCH PUBLICITY HAS ALSO SURROUNDED THE SUICIDES OF THE TWO MAIN EXECUTIVES INVOLVED GABRIELE CAGLIARI THE FORMER ENI CHAIRMAN AND RAUL GARDINI FORMER CHAIRMAN OF FERRUZZI AND MONTEDISON NO LESS SHOCKING HAS BEEN THE WAY THAT ITALIAN INSTITUTIONS THAT ARE SUPPOSED TO PROVIDE CONTROLS HAVE ALSO BEEN SUCKED INTO THE SCANDAL BRUNO PAZZI 81YEAROLD FORMER PRESIDENT OF CONSOB THE STOCK MARKET'S REGULATORY AGENCY WAS ARRESTED IN LATE JULY ON CHARGES HE ACCEPTED PAYMENTS IN 1990 FROM ENIMONT TO TURN A BLIND EYE TO WRONGDOING CONSOB IN TURN HAS BANNED FERRUZZI'S MAIN AUDITORS PRICE WATERHOUSE FROM HANDLING THE ACCOUNTS FOR THE NEXT THREE YEARS ALLEGING THAT THE ACCOUNTANTS MISSED DOZENS OF IRREGULARITIES AND EARLIER THIS MONTH MILAN MAGISTRATES ARRESTED ONE OF THEIR SENIOR COLLEAGUES DIEGO CURTO HE ADMITS RECEIVING 400000 SWISS FRANCS 282200 IN RETURN FOR ORDERING ENIMONT'S SHARES TO BE FROZEN AT A CRUCIAL MOMENT IN THE ENIMONTEDISON DISPUTE OVER THE JOINT VENTURE'S FUTURE MR CURTO HAS TOLD INVESTIGATORS THAT HE AND HIS WIFE HAD RETRIEVED MONEY FROM A SWISS BANK THIS SUMMER BUT HAD THROWN IT AWAY BECAUSE THE ENIMONT EXECUTIVE WHO HAD GIVEN IT TO HIM HAD BEEN ARRESTED THE CURRENT DEBATE ABOUT ITALIAN CAPITALISM WAS SPARKED BY A SERIES OF FIERCE FRONTPAGE EDITORIALS LAST MONTH IN THE NEWSPAPER CORRIERE DELLA SERA THE FIRST HEADLINED CAPITALISM WITHOUT LAWS AND WRITTEN BY ERNESTO GALLI DELLA LOGGIA A TURIN POLITICALSCIENCE PROFESSOR LAMBASTED THE NATION'S BUSINESSMEN HE SAID THE CURRENT ROUND OF CORRUPTION WASN'T ISOLATED POINTING TO EARLIER SCANDALS INVOLVING THE COLLAPSED BANCO AMBROSIANO CLOSELY LINKED TO THE VATICAN AND BANCA NAZIONALE DEL LAVORO WHICH HAS BEEN LINKED TO ILLEGAL PAYMENTS TO IRAQ A HUGE CONCERN SUCH AS FERRUZZI WHICH IS NOW IN DIRE FINANCIAL STRAITS USED FALSE ACCOUNTING ROBBED ITS SHAREHOLDERS AND GAVE CARTE BLANCHE TO PEOPLE WHO ARE EITHER INCOMPETENT OR DISHONEST OR BOTH AT THE SAME TIME THE CORRIERE EDITORIAL SAID THIS SHOULD SEND AN ALARM THAT ETHICAL AND PROFESSIONAL STANDARDS IN THE ITALIAN BUSINESS COMMUNITY HAVE BEEN SUBJECTED TO SERIOUS POLLUTION THAT IT IS IMPOSSIBLE TO IGNORE IT SAID ADDRESSING THE CERNOBBIO CONFERENCE THE CURRENT PRESIDENT OF CONFINDUSTRIA THE NATION'S INDUSTRY CONFEDERATION LUIGI ABETE ACKNOWLEDGED THAT UNFORTUNATELY WE IN ITALY ARE STILL FAR FROM A WIDESPREAD CULTURE OF THE MARKET WITH ITS LAWS AND LIMITS BUT HE INSISTED THAT ITALIAN BUSINESS STILL HAS MANY POSITIVE MERITS AND THAT ONLY A SMALL MINORITY HAS BEEN PAYING BRIBES 9309130012 930913 WOULD ANYONE BUY A USED CAR FROM A MAN IN BUDAPEST WELL DEALERS WITH A SOFT SELL CAN MOVE PLENTY OF MODELS IN A MUSHROOMING MARKET BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BUDAPEST HAWKING USED CARS A BUSINESS THAT PRACTICALLY INVENTED THE HARD SELL ATTILA RADOSICZKY HAS FOUND THAT ANYTHING MORE AGGRESSIVE THAN A STUDIED INDIFFERENCE SENDS CUSTOMERS SCURRYING WE DON'T EVEN GO UP AND TALK TO THEM HE SAYS WE WAIT FOR THEM TO COME TO US IT'S DIFFICULT TO ARGUE WITH SUCCESS MR RADOSICZKY IS A COOWNER OF STARCAR AUTO AGENCY ONE OF THE DOZENS OF USEDCAR LOTS THAT HAVE SPRUNG UP AROUND BUDAPEST DURING THE FIRST HEADY DAYS IN 1991 AFTER MOST BARRIERS TO IMPORTING CARS TO HUNGARY TUMBLED STARCAR SOMETIMES SOLD USED WESTERN CARS BEFORE THEY WERE UNLOADED FROM THE TRUCK OCCASIONALLY BIDDING WARS ERUPTED BETWEEN CUSTOMERS WANTING THE SAME CAR THINGS HAVE SETTLED DOWN SINCE THEN BUT MR RADOSICZKY STILL SELLS AN AVERAGE OF ONE CAR A DAY BRISK BUSINESS FOR THE SMALL LOT A RECENT SELECTION INCLUDED ABOUT 20 CARS MOST OF WHICH APPEAR TO BE IN FAIRLY GOOD CONDITION THERE'S A WHITE MERCEDESBENZ PARKED DIRECTLY OUTSIDE THE OFFICE FOR SECURITY REASONS AND A BROWN VW GOLF MR RADOSICZKY'S BESTSELLERS ARE ANYTHING GERMAN HE SAYS ALTHOUGH THE RUSH TO BUY PRICEY MERCEDESBENZES AN 8YEAROLD 190 MODEL WENT FOR 13 MILLION FORINTS 14075 NOT TOO LONG AGO HAS SLOWED MANY OF THESE HIGHEND CUSTOMERS ARE BUSINESSMEN WITH PRIVATECOMPANIES AND THOSE WHO HAD MONEY LIKE THAT HAVE NOW SPENT IT OR INVESTED IT HE EXPLAINS AMERICAN CARS HARDLY SELL BECAUSE THEY ARE VERY EXPENSIVE AND ARE GAS GUZZLERS SAYS ISTVAN KARIKO ANOTHER PARTNER IN THE BUSINESS ON A RECENT DAY THE LOT FEATURES TWO MOTORBOATS AND A 1991 FORD AEROSTAR PASSENGER VAN SIMILAR TO AN AIRPORT SHUTTLE BUS PRICED AT 21 MILLION FORINTS WE'RE TRYING OUT NEW MODELS IN NEW AREAS MR KARIKO SAYS HE SAYS HE SOLD A FLETSCHER MERCURY MOTORBOAT TO A RUSSIAN BUSINESSMAN FOR 18 MILLION FORINTS MR RADOSICZKY HIS PARTNERS AND THEIR COMPETITORS TEND TO LOOK THE PART OF WESTERN USEDCAR SALESMEN AT LEAST THE PART THAT LENDS ITSELF TO CARICATURE SOME WEAR GOLD NECK CHAINS OR STUDDED LEATHER BELTS OR DIAMOND PINKIE RINGS MR KARIKO FAVORS SILVER BRACELETS AND BELT BUCKLES BUT THIS OPERATION IS DECIDEDLY UNWESTERN IN OTHER WAYS THAN THE SOFTER SELL HIGH INTEREST RATES MAKE CREDIT A RARITY MOST TRANSACTIONS INVOLVE WADS OF HARD CASH AND TEST DRIVES ARE DISCOURAGED MR RADOSICZKY RECOUNTS HOW ONE OF HIS CARS A 10YEAROLD AUDI WAS STOLEN DURING A TEST SPIN TWO YEARS AGO THE THIEF WHO WAS POSING AS A CUSTOMER SIMPLY PULLED UP NEXT TO ANOTHER CAR FILLED WITH PEOPLE WHO APPEARED TO BE HIS FRIENDS AND ORDERED THE SALESMAN OUT WE'RE NOW VERY CAREFUL HE SAYS ABOUT WHO WE LET DRIVE CARS THE MARKET REMAINS VERY MUCH IN FLUX AFTER THE INITIAL EUPHORIA SURROUNDING THE FALL OF THE IRON CURTAIN WORE OFF CUSTOMERS BECAME MORE CAUTIOUS NOW SOME GOVERNMENTS INCLUDING HUNGARY'S ARE PONDERING WAYS TO CHECK THE FLOW OF USED CARS PARTICULARLY INEXPENSIVE ONES INTO THEIR COUNTRY WHILE MOST MAJOR AUTO MAKERS ARE RUSHING TO BUILD DEALERSHIPS TO SELL NEW CARS THE BULK OF THE BUSINESS REMAINS IN THE HANDS OF PEOPLE LIKE MR RADOSICZKY KNOWN AS WILD OR GRAY DEALERS SUCH BUSINESSES LINE MOST OF THE ROADS LEADING INTO BUDAPEST AND ARE OFTEN LITTLE MORE THAN A FENCED PLOT OF LAND WITH A TRAILER ON ONE SIDE SERVING AS AN OFFICE ONE ANALYST ESTIMATES THAT AS MUCH AS 70 OF THE TOTAL CAR MARKET IN EASTERN EUROPE IS FOR USED CARS THE DEALERS GET THEIR CARS FROM WESTERN EUROPE OFTEN TAKING VEHICLES THAT CAN NO LONGER PASS STRINGENT TECHNICAL TESTS REQUIRED FOR REGISTRATION SOME CRITICS FRET THAT EASTERN EUROPE IS ON THE VERGE OF BECOMING A GRAVEYARD FOR WESTERN EUROPE'S OLD CARS I USED TO BE BOTHERED BY THIS SAYS ZSUZSA KAPITANY A SPECIALIST ON THE AUTO INDUSTRY AT THE HUNGARIAN ACADEMY OF SCIENCES BUT TO UNDERSTAND THIS MARKET YOU HAVE TO LOOK AT WHAT THESE PEOPLE HAD BEFORE THEY MIGHT BE GIVING UP A 15YEAROLD TRABANT FOR A 10YEAROLD BMW SO TO THEM IT'S A STEP UP YET LATELY THE MARKET HAS TAKEN A UTURN THE OLD SOCIALIST CARS LIKE LADAS AND SKODAS HAVE STARTED TO SELL WELL AGAIN BECAUSE PEOPLE HAVE BECOME DISAPPOINTED WITH SECONDHAND WESTERN CARS SAYS MR RADOSICZKY THEY THINK A 6 OR 7YEAROLD WESTERN CAR ISN'T AS GOOD AS A NEW LADA SAMARA AND SPARE PARTS FOR WESTERN CARS ARE MORE EXPENSIVE AND HARDER TO GET SOMETIMES ERNEST BECK IN BUDAPEST CONTRIBUTED TO THIS ARTICLE 9309130011 930913 TECHNOLOGY UNISYS TO OFFER NEW MAINFRAME FOR LOWER COST BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL UNISYS CORP WILL UNVEIL TODAY A LOWCOST MAINFRAME COMPUTER THAT MARKS AN EARLY EXAMPLE OF A SURVIVAL STRATEGY SWEEPING THROUGH ONE OF HIGHTECH'S MOST EMBATTLED MARKETS SEEKING TO SHORE UP ITS MAINFRAME BUSINESS AMID PLUNGING PRICES UNISYS IS BORROWING A LOWCOST CHIP DESIGN MORE COMMONLY USED IN PERSONAL COMPUTERS UNISYS CLAIMS THE DESIGN KNOWN AS CMOS COMPLEMENTARY METALOXIDE SEMICONDUCTOR LETS IT OFFER TWO TO THREE TIMES MORE COMPUTING POWER PER DOLLAR LIKE OTHER MAINFRAME MAKERS UNISYS ALSO WANTS TO BREAK FROM THE GIANT MACHINES' TRADITIONAL USE AS SELFCONTAINED ISLANDS OF COMPUTING INSTEAD THE BLUE BELL PA COMPANY WANTS ITS NEW MACHINE THE 2200/500 TO BE USED AS THE HUB OF A BIG NETWORK THE NEW UNISYS COMPUTER IS A FORERUNNER OF SIMILAR MOVES ON THE WAY FROM INTERNATIONAL BUSINESS MACHINES CORP AND OTHER MAINFRAME MAKERS ALL OF THEM ARE DESPERATE TO DEFEND THE MAINFRAME'S TURF FROM INCREASINGLY POWERFUL SMALLER MACHINES EVEN IF IT MEANS MAKING THE MAINFRAME CHEAPER AND LESS PROFITABLE IT'S AN UPHILL BATTLE SAID PETER KASTNER A VICE PRESIDENT OF BOSTON MARKET RESEARCHER ABERDEEN GROUP THEY CAN KEEP TRYING TO SELL HIGHPRICED POWER TO A DECREASING AUDIENCE OR THEY CAN CUT THEIR PRICES AND SELL A LOT MORE TO KEEP EVEN HE CALLED THE 2200/500 A RADICAL CHANGE FOR UNISYS UNISYS SAID THE MACHINE USES JUST 18 CMOS CHIPS AS ITS MAIN ENGINE COMPARED WITH 197 CHIPS FOR A BIGGER MAINFRAME IN THE 2200 LINE IT SAID THE SAVINGS LET IT OFFER THE MODEL 500 AT PRICES STARTING AT 350000 NORMALLY THE PRICE RANGE OF SMALLER MINICOMPUTERS AS IT PULLS OUT OF A DEEP SLUMP UNISYS HAS BEEN FARING CONSIDERABLY BETTER IN MAINFRAMES THAN ITS MOST VISIBLE RIVAL IBM UNISYS' MAINFRAME REVENUE SAW DOUBLEDIGIT GAINS LAST YEAR WHILE IBM'S FELL SHARPLY BUT UNISYS EXECUTIVES ACKNOWLEDGE THAT MAINFRAMES AREN'T WHERE ITS GROWTH LIES AND ARE PUSHING HARD INTO NEW MARKETS IN COMPUTER SERVICES 9309130010 930913 FINANCING BUSINESS PRATT HOTEL CORP PRATT HOTEL CORP DALLAS SAID TWO OF ITS SUBSIDIARIES HAVE PROPOSED A REFINANCING PLAN INVOLVING THE PUBLIC OFFERING OF DEBT PRATT SAID GB PROPERTY FUNDING CORP PLANS TO ISSUE 205 MILLION OF FIRST MORTGAGE NOTES TO BE GUARANTEED BY GREATE BAY HOTEL AND CASINO INC THE NOTES WILL BE SECURED BY A LIEN ON PRATT'S SANDS HOTEL AND CASINO IN ATLANTIC CITY ALSO PRT FUNDING CORP WILL ISSUE 875 MILLION OF SENIOR NOTES TO BE GUARANTEED BY PRATT CASINO CORP GREATE BAY'S PARENT COMPANY 9309130008 930913 TEAR DOWN THE TRADE WALL BY RONALD REAGAN FOR DECADES AMERICA HAS LED FREEDOMSEEKING PEOPLE AROUND THE WORLD IN THEIR STRUGGLES TO DESTROY AND DISMANTLE THE OPPRESSIVE BARRIERS THAT DIVIDE COUNTRIES AND RESTRICT LIBERTY TODAY MANY OF THOSE BATTLES HAVE BEEN FOUGHT AND WON THE BARRICADES THAT ONCE STOOD BETWEEN COUNTRIES NO LONGER EXIST AND THEIR CITIZENS ARE ABLE TO LIVE TOGETHER IN FREEDOM AND PROSPERITY WITH THIS IN MIND WE AS AMERICANS AS NORTH AMERICANS ARE FACED WITH A NEW CHALLENGE THE COLD WAR IS OVER AND NOW WE MUST BREAK DOWN THE TARIFF WALLS THAT RESTRICT THE FREE FLOW OF TRADE ON OUR CONTINENT THE NORTH AMERICAN FREE TRADE AGREEMENT CAN BRING US THAT VICTORY THE REASON FOR A FREE TRADE AGREEMENT IS SIMPLE THROUGHOUT HISTORY WHENEVER AND WHEREVER TRADE BARRIERS HAVE BEEN LOWERED THE PARTICIPATING ECONOMIES HAVE FLOURISHED THROUGH NAFTA WE WILL MOST CERTAINLY SEE A BOOST TO THE ECONOMIC VITALITY OF THE US CANADA AND MEXICO IT WILL HELP MATURE AND EXPAND THE NORTH AMERICAN ECONOMY KEEPING US GLOBALLY COMPETITIVE PRESIDENTS OF BOTH POLITICAL PARTIES HAVE EMBRACED THE NORTH AMERICAN FREE TRADE AGREEMENT IN ORDER TO FORGE A POWERFUL BLOC TO COMPETE IN TODAY'S GLOBAL ECONOMY ITS HISTORY GOES BACK EVEN FURTHER WHEN I ANNOUNCED MY CANDIDACY FOR PRESIDENT IN 1979 I BELIEVED IN THE POTENTIAL FOR THE WORLD'S LARGEST FREE TRADE ZONE AND CALLED FOR THE CREATION OF SUCH A NORTH AMERICAN ACCORD WE TOOK A MAJOR STEP FORWARD IN 1988 WHEN WE WERE ABLE TO FORGE A HISTORIC TRADE AGREEMENT BETWEEN THE US AND CANADA THIS AGREEMENT CUT TARIFFS AND ELIMINATED OTHER TRADE BARRIERS AND AS A RESULT THE WORLD'S LONGEST UNDEFENDED BORDER GOT A LOT BUSIER BACK THEN OBJECTIONS WERE RAISED BUT THE CRITICS WERE PROVEN WRONG AND OUR TRADE GREW TO A WORLD RECORD 175 BILLION AND OUR TWOWAY INVESTMENT ALSO REACHED RECORD LEVELS THE NORTH AMERICAN FREE TRADE AGREEMENT COMPLETES THE PICTURE WITH A FULL THREEWAY ACCORD THREE PROUD INDEPENDENT NATIONS PULLING TOGETHER FOR A DYNAMIC FUTURE OF ECONOMIC GROWTH AND PROSPERITY IT CLEARS AWAY THE TANGLED UNDERBRUSH OF OLD TRADE BARRIERS THAT FOR TOO LONG HAVE STOOD IN THE WAY OF AMERICAN INDUSTRY FROM FORTUNE 500 COMPANIES TO SMALL FAMILYOWNED BUSINESSES THE NORTH AMERICAN PEOPLE CAN NOW CONSTRUCT THE HOUSES AND FACTORIES OF THE FUTURE FROM MONTREAL TO MINNEAPOLIS TO MEXICO CITY NEW MARKETS WILL OPEN UP IN BANKING INSURANCE TELECOMMUNICATIONS TRUCKING AUTOMOBILES TEXTILES ENERGY AGRICULTURE INTELLECTUAL PROPERTY AND INVESTMENT IT WILL FORM THE LARGEST RICHEST AND MOST IMPORTANT FREE TRADE ZONE IN THE WORLD I'VE NEVER BEEN ONE TO GO ALONG WITH THE CROWD JUST TO FIT IN BUT I MIGHT SUGGEST NAFTA TO YOU FOR ANOTHER CONVINCING REASON BECAUSE VIRTUALLY EVERY OTHER REGION IN THE WORLD IS DOING IT A MAJOR OBJECTIVE OF NAFTA IS SIMILAR TO THAT BEING ADOPTED BY THE EUROPEAN COMMUNITY NOW THERE'S ALSO TALK AFOOT OF CREATING AN ASIAN FREE TRADE ZONE INCLUDING BOOMING ECONOMIES LIKE JAPAN KOREA HONG KONG AND SINGAPORE AS WELL AS THE CHINESE GIANT IF NAFTA FAILS TO BE APPROVED BY CONGRESS AMERICA RUNS THE RISK OF BEING LEFT ON THE SIDELINES WHILE OUR ASIAN COMPETITORS AND THE EUROPEAN COALITIONS MAY BECOME ECONOMICALLY SELFSUFFICIENT AND THE DEMAND FOR US GOODS WOULD BE DRAMATICALLY REDUCED THE US HAS ALWAYS BEEN THE LEADER OF THE GLOBAL ECONOMY AND WE WOULD BE FOOLISH TO ALLOW OURSELVES TO BE LEFT BEHIND THE FUTURE OF THE WORLD ECONOMY IS IN THESE MEGAALLIANCES AND NAFTA IS AN INVESTMENT IN AMERICA'S FUTURE OPPONENTS OF THE PLAN BELIEVE THAT LOWER WAGE RATES IN MEXICO WILL LURE LABORINTENSIVE BUSINESSES FROM THE US LIKE AFTERCHRISTMAS SHOPPERS TO MACY'S BASEMENT WHILE I UNDERSTAND THEIR HESITATION I HAVE TO WONDER WHAT'S PREVENTED AMERICAN BUSINESSES FROM MOVING TO MEXICO ALREADY WITHOUT NAFTA IF A COMPANY WANTS TO RELOCATE ITS PLANT SOUTH OF THE BORDER IT CERTAINLY DOESN'T NEED THIS AGREEMENT TO DO SO AS FOR JOBS THE NAFTA OPPONENTS ADD UP ALL THE JOBS IN US INDUSTRY WHERE LABOR ACCOUNTS FOR AT LEAST 20 OF TOTAL COSTS AND WHERE THE AVERAGE WAGE IS GREATER THAN 7 AN HOUR WITH THIS KIND OF ARITHMETIC THEY COME UP WITH NEARLY SIX MILLION JOBS THEY SAY MAY MOVE TO MEXICO THE TROUBLE WITH THIS REASONING IS THAT IT'S JUST PLAIN WRONG INDEED THE OPPOSITE WILL BE TRUE AND MANY NEW US JOBS WILL BE CREATED IF NAFTA IS APPROVED BY CONGRESS AND IMPLEMENTED HERE IS WHY MEXICO WITH ITS LARGE AND GROWING POPULATION IS A MAJOR MARKET FOR US CONSUMER PRODUCTS DESPITE THE FACT THAT MEXICO'S TARIFFS ARE ON AVERAGE MORE THAN TWICE OURS ITS CITIZENS HAVE BEEN BUYING US PRODUCTS IN INCREASING QUANTITIES WITH NAFTA IN PLACE THOSE TARIFFS WILL FALL WHAT IS NOW A STEADY STREAM OF GROWTH IN THE SALE OF US TEXTILES APPAREL HOME FURNISHINGS AND SPORTING GOODS MAY WELL BECOME AN ECONOMIC GUSHER THE LEADERS OF AMERICAN BUSINESSES CERTAINLY RECOGNIZE THIS FACT AND ACTIVELY SUPPORT THE PASSAGE OF NAFTA RECENTLY THE CHAIRMAN OF PROCTER & GAMBLE PREDICTED THAT NAFTA WOULD RESULT IN THE CREATION OF NEARLY 2000 NEW JOBS IN HIS COMPANY ALONE MEXICO IS ALREADY ONE OF THE BEST CUSTOMERS FOR AMERICAN PRODUCTS RESULTING IN A TRADE SURPLUS IN OUR FAVOR YEAR AFTER YEAR THERE'S NO DOUBT MEXICO STANDS TO BENEFIT FROM NAFTA AND MEXICANS ARE VIGOROUSLY WORKING TO PROMOTE ITS PASSAGE BUT THE BENEFITS ARE MUTUAL THERE IS ONLY ONE REASON I FAVOR THIS AGREEMENT QUITE BLUNTLY BECAUSE OF WHAT'S IN IT FOR THE UNITED STATES THERE'S NO QUESTION THAT WE MUST WORK TO COMPETE IN A RAPIDLY CHANGING AND EXPANDING GLOBAL MARKETPLACE NAFTA WILL LEVEL THIS PLAYING FIELD IT'S UNIQUE AND OFFERS A COMBINATION OF ECONOMIC GROWTH OPPORTUNITY BENEFITS TO WORKERS AND ENVIRONMENTAL SENSITIVITY NEVER BEFORE SEEN IN THE WORLD I'VE ALWAYS SAID THAT NORTH AMERICANS HAVE HISTORICALLY BEEN UNITED IN OUR VISION IN OUR OPTIMISM AND IN OUR COMMITMENT TO MOVING FORWARD TOGETHER OUR BORDERS NEED TO BE MEETING PLACES NOT DIVIDING LINES OR OPPRESSIVE SLABS OF CONCRETE HINDERING ECONOMIC PROGRESS THEY SHOULD BE BUSY AND EXCITING AND OVERFLOWING WITH PROSPERITY FOR EVERYONE TODAY THE DARK CLOUD OF COMMUNISM IS LIFTED AND WE REJOICE IN THE FACT THAT FREEDOM IS ONE THE MOVE AROUND THE WORLD WHEN IT COMES TO FREEDOM AND PROSPERITY AMERICANS HAVE NEVER BEEN CONTENT MERELY WITH THE STATUS QUO OR ALLOWED LIMITATIONS TO BE PLACE UPON US TODAY WE MUST REALIZE THE COMPETITIVE CHALLENGES OF THE GLOBAL ECONOMY AND STEP RIGHT UP TO OUR RIGHTFUL PLACE AS LEADER IN DOING SO LET US REMEMBER THAT ONE OF THE MOST IMPORTANT HUMAN FREEDOMS IS FREE EXCHANGE MR REAGAN WAS THE 40TH PRESIDENT OF THE US 9309130007 930913 BUSINESS BRIEF KATY INDUSTRIES INC POSTPONES MEETING VOTE ON PRIVATIZATION ELGIN ILL KATY INDUSTRIES INC POSTPONED A STOCKHOLDER MEETING THAT HAD BEEN SCHEDULED FOR THIS WEEK AT WHICH HOLDERS WERE TO VOTE ON A PROPOSAL TO TAKE THE COMPANY PRIVATE THE CONTROLLING CARROLL FAMILY HAS OFFERED 2575 A SHARE FOR THE 48 STAKE OWNED BY THE PUBLIC RECENTLY NEW YORK'S ROSECLIFF PENSLER PARTNERS LP PROPOSED TO ACQUIRE THE ENTIRE COMPANY FOR 29 A SHARE OR ABOUT 262 MILLION THE CARROLL FAMILY HAS SAID IT WON'T SELL AND SINCE ITS EARLIER PROPOSAL REQUIRES ONLY A SIMPLE MAJORITY IT APPEARS TO HAVE ENOUGH VOTES TO SQUELCH THE HIGHER BID KATY ATTORNEYS TOLD A DELAWARE COURT THAT THE COMPANY INTENDS TO SEND STOCKHOLDERS A SUPPLEMENT TO THE PROXY MATERIAL SENT EARLIER PROVIDING INFORMATION ABOUT THE ROSECLIFF BID AND CLARIFYING THAT THE LEGAL RIGHTS OF SHAREHOLDERS TO HAVE THEIR STOCK INDEPENDENTLY APPRAISED AREN'T EXTINGUISHED OR WAIVED BY THE MERGER AGREEEMENT THOSE RIGHTS WOULD PERMIT HOLDERS TO REFUSE TO ACCEPT THE CARROLL FAMILY OFFER AND TO HAVE THE COURT INDEPENDENTLY ESTABLISH A VALUE FOR THEIR SHARES TYNDALL PARTNERS LP HOLDER OF ABOUT 201000 KATY SHARES HAD FILED SUIT ALLEGING THAT THE PROXY STATEMENT MAILED LATE LAST MONTH RAISED THE POSSIBILITY OF CONFUSION ON THE PART OF STOCKHOLDERS ABOUT THE STATUS OF THE APPRAISAL RIGHTS THE STOCKHOLDER MEETING MUST TAKE PLACE AT LEAST 10 DAYS AFTER THE SUPPLEMENT IS MAILED THE COMPANY SAID AND A KATY OFFICIAL SAID THE MEETING WILL BE CONVENED ON THURSDAY AS SCHEDULED BUT BE ADJOURNED WITH NO ACTION KATY OFFICIALS NOW EXPECT IT TO BE THE SECOND HALF OF SEPTEMBER THE OFFICIAL SAID 9309130006 930913 AT&T EXEMPLOYEE ADMITS TO CONSPIRING TO EXTORT 1 MILLION NEWARK NJ THE US ATTORNEY'S OFFICE SAID A FORMER EMPLOYEE OF AMERICAN TELEPHONE & TELEGRAPH CO ADMITTED TO CONSPIRING TO EXTORT 1 MILLION FROM THE COMPANY BETWEEN APRIL AND JUNE 1993 FEDERAL PROSECUTORS SAID 30YEAROLD LOUIS PACICH A FORMER PROJECT COORDINATOR FOR AT&T IN PISCATAWAY AND HIS 42YEAROLD UNCLE RICHARD VIGNEVIC OF MARYLAND PLEADED GUILTY TO THE EXTORTION PLAN IN FEDERAL COURT IN TRENTON AND FACE SENTENCING NOV 22 PROSECUTORS SAID MR PACICH ADMITTED TO STEALING COMPUTERIZED RECORDS FROM 4000 CUSTOMER ACCOUNTS IN APRIL 1993 MR VIGNEVIC THEN CONTACTED THE COMPANY AND FALSELY WARNED THAT SOMEONE AT AT&T WAS SELLING ACCOUNT INFORMATION TO COMPETITOR COMPANIES MR VIGNEVIC DEMANDED 1 MILLION FROM THE COMPANY IN ORDER TO PLUG THE LEAK HE SAID ON A TAPE SENT TO AT&T FEDERAL AGENTS ARRESTED THE MEN JUNE 9 IN MARYLAND WHEN THEY ATTEMPTED TO PICK UP AN ANTICIPATED 500000 CASH PAYMENT FROM THE COMPANY BOTH MEN ARE FREE PENDING SENTENCING ON 100000 BAIL EACH THEY FACE A MAXIMUM OF 20 FEARS IN FEDERAL PRISON AND A 250000 FINE MR PACICH'S ATTORNEY COULDN'T BE REACHED FOR COMMENT JOHN P MCDONALD MR VIGNEVIC'S COUNSEL SAID HIS CLIENT GOT INVOLVED IN THE EXTORTION SCHEME IN ORDER TO GET MONEY TO GIVE TO HIS RELATIVES MANY OF WHOM ARE ILL MR MCDONALD SAID HE EXPECTS HIS CLIENT TO RECEIVE BETWEEN 18 MONTHS AND 24 MONTHS IN FEDERAL PRISON PAROLE ISN'T OFFERED IN THE FEDERAL PENAL SYSTEM BUT MR MCDONALD SAID HE EXPECTS THAT MR VIGNEVIC WILL SERVE ABOUT 85 OF HIS SENTENCE AND GET THE REST OFF FOR GOOD BEHAVIOR 9309130005 930913 RATNERS HOLDERS VOTE FOR NAME CHANGE NARROWER LOSS POSTED SPECIAL TO THE WALL STREET JOURNAL LONDON RATNERS GROUP PLC A BRITISH COMPANY THAT OWNS CHAINS OF JEWELRY STORES IN THE UNITED KINGDOM AND THE US SAID SHAREHOLDERS VOTED TO CHANGE ITS NAME TO SIGNET GROUP PLC EFFECTIVE IMMEDIATELY THE COMPANY ALSO REPORTED THAT ITS PRETAX LOSS NARROWED TO 269 MILLION 417 MILLION FOR THE FIRST HALF ENDED JULY 31 FROM 277 MILLION A YEAR EARLIER AND IT ANNOUNCED THAT IT WAS CLOSING AND CONVERTING ITS NAMESAKE STORES INTO DIFFERENT FORMATS RATNERS CHAIRMAN JAMES MCADAM SAID THAT AS PART OF THE COMPANY'S ATTEMPT TO REMAKE ITSELF AND BECOME PROFITABLE AGAIN A PROCESS THAT HAS SEEN THE RATNERS FAMILY OUSTED FROM MANAGEMENT 40 NAMESAKE STORES IN THE UK WILL BE CONVERTED INTO H SAMUEL STORES BY EARLY 1994 BY MID1994 THE RATNERS JEWELRYSTORE CHAIN WILL BE DOWN TO NO MORE THAN 60 SHOPS HE SAID WHICH MAY TAKE ON A COMPLETELY NEW NAME AND FORMAT RATNERS STORES CONTINUED TO UNDERPERFORM IN THE FIRST HALF MR MCADAM SAID WITH COMPARABLE SALES DOWN 12 TOTAL SALES ROSE 86 TO 3997 MILLION FROM 3679 MILLION SALES AT H SAMUEL AND ERNEST JONES TWO OTHER UK JEWELRYSTORE CHAINS INCREASED BY 2 AND 4 RESPECTIVELY ON A COMPARABLE BASIS WHICH EXCLUDES STORE CLOSURES SALES AT SALISBURY A UK LUGGAGESTORE CHAIN FELL 8 ON LIKEFORLIKE BASIS AND MCADAM SAID A NEW MANAGEMENT TEAM HAS BEEN PUT IN PLACE TO REVIEW THE CHAIN'S STRATEGY IN THE US THE STERLING AND KAY JEWELRYSTORE CHAINS SAW SALES RISE 5 ON A COMPARABLE BASIS US PROFIT BEFORE INTEREST ROSE TO 86 MILLION FROM 51 MILLION RATNERS CONTINUED TO SUSPEND PAYMENT OF DIVIDENDS ON ITS PREFERENCE SHARES AND PAID NO INTERIM DIVIDEND ON ORDINARY SHARES 9309130004 930913 LEGG MASON TO DROP EXOTIC' DERIVATIVES SAYING THEY'RE TOO HARD TO UNDERSTAND BY RICHARD T SILVERMAN STAFF REPORTER OF THE WALL STREET JOURNAL LEGG MASON WOOD WALKER INC HAS DECIDED TO DISCONTINUE SELLING EXOTIC DERIVATIVES TO ITS RETAIL CUSTOMERS BECAUSE THE SECURITIES ARE HARD TO UNDERSTAND A COMPANY OFFICIAL SAID THE CLIENT DIDN'T UNDERSTAND IT THE INVESTMENT ADVISER DIDN'T UNDERSTAND IT AND WE THOUGHT IT WAS A MAJOR WORRY SAID EDWARD A TABER III AN EXECUTIVE VICE PRESIDENT WITH THE FIRM'S PARENT LEGG MASON INC WE FELT THIS WOULD BE IN THE BEST INTERESTS OF EVERYBODY MR TABER MADE HIS COMMENTS IN BALTIMORE LATE LAST WEEK AT A NEWS CONFERENCE HELD BY LEGG MASON AND TWO OTHER BALTIMOREBASED FINANCIAL SERVICES FIRMS ALEX BROWN INC AND T ROWE PRICE ASSOCIATES INC THE MOVE BY LEGG MASON INSTITUTED THIS SPRING BUT FIRST DISCLOSED LAST WEEK UNDERSCORES THE DIFFICULTY IN COMPREHENDING NOT ONLY HOW THE OFTENCOMPLEX SECURITIES WORK BUT ALSO THE RISK THEY POSE PARTICULARLY TO INDIVIDUAL INVESTORS WITH THE PROBLEMS MANY ON WALL STREET ALREADY HAD IN GRASPING HOW SUCH ARCANE SECURITIES AS INVERSE FLOATERS AND INTERESTONLY STRIPS WORK AND THE DIFFICULTIES IN PRICING THE PRODUCTS CRITICS HAVE CALLED FOR MORE REGULATION MORE DISCLOSURE AND BY SOME EVEN OUTRIGHT PROHIBITION OF ALL DERIVATIVES HOWEVER PROPONENTS ARGUE THAT DERIVATIVES HAVE VALUE AS A HEDGE AGAINST VARIOUS CURRENCYEXCHANGE AND INTEREST RATES AS WELL AS COMMODITY PRICES DERIVATIVES ARE SECURITIES SUCH AS FUTURES AND OPTIONS WHOSE VALUE DEPENDS ON THE PRICE OF OTHER SECURITIES MR TABER SAID LEGG MASON HASN'T STOPPED SELLING VANILLA DERIVATIVES SUCH AS COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS TO RETAIL CUSTOMERS AND CONTINUES TO SELL A RANGE OF PRODUCTS TO INSTITUTIONS MR TABER SAID LEGG MASON DIDN'T SELL MUCH IN THE DERIVATIVES AREA TO RETAIL CLIENTS SO ABANDONING THE MARKET WON'T RESULT IN ANY SIGNIFICANT LOSS FOR THE FIRM MR TABER NOTED THAT LEGG MASON'S PROTOTYPICAL RETAIL CLIENT IS AN OLDER PERSON NEARING RETIREMENT A FACTOR THAT WOULD MAKE IT EVEN MORE ILLADVISED FOR A BROKER TO PLACE A LEGG MASON CUSTOMER IN A POTENTIALLY RISKY DERIVATIVE INVESTMENT TO ME EVEN THE PEOPLE WHO DESIGN AND STRUCTURE DERIVATIVES FREQUENTLY DON'T UNDERSTAND THEM MR TABER SAID SOMETIMES THEY DON'T EVEN PERFORM HOW THEY'RE DESIGNED TO PERFORM SO IF THEY'RE THAT DIFFICULT TO UNDERSTAND THEY DON'T BELONG IN RETAIL HANDS MR TABER SAID THERE WASN'T ANY ONE PROBLEM THAT PROMPTED THE FIRM TO CHANGE ITS POSITION ON SELLING DERIVATIVES TO RETAIL CUSTOMERS IT ISN'T KNOWN IF OTHER RETAILORIENTED BROKERAGE FIRMS HAVE ALSO BANNED SELLING EXOTIC DERIVATIVES LEGG MASON'S ACTIONS PORTEND A FUTURE TREND SAID MICHAEL FLANAGAN AN ANALYST WITH LIPPER ANALYTICAL SERVICES I WHOLEHEARTEDLY SUPPORT THE MOVE HE SAID ONE OF BIGGEST CHALLENGES IN THE INDUSTRY IS TO PROPERLY TREAT NEW INVESTORS AND THAT MEANS MATCHING APPROPRIATE INVESTMENTS WITH INVESTMENT OBJECTIONS THAT SAID IT WOULD BE A STRETCH TO THINK OF DERIVATIVES AS AN APPROPRIATE INVESTMENT FOR A CUSTOMER BRINGING CERTIFICATE OF DEPOSIT MONEY INTO THE INDUSTRY FOR THE FIRST TIME MR FLANAGAN SAID THAT GIVEN THE LACK OF UNDERSTANDING DERIVATIVES COULD BE A TICKING TIMEBOMB FOR UNSOPHISTICATED INVESTORS DERIVATIVE INVESTMENTS COULD HAVE AS MUCH IF NOT MORE RISK THAN THE PARTNERSHIP INVESTMENTS OF THE 1980S JAMES HANBURY AN ANALYST AT WERTHEIM SCHRODER SAID IT'S NOT SURPRISING LEGG MASON WOULD TAKE SUCH A STANCE THEY'RE A VERY CONSERVATIVE FIRM HE SAID THEY DON'T ENCOURAGE MARGIN ACCOUNTS THEY DON'T DO COMMODITIES THEY DON'T DO OPTIONS I KNOW A LOT OF FIRMS SAY THEY'RE CONSERVATIVE BUT LEGG MASON IS REALLY CONSERVATIVE 9309130003 930913 BROOKE GROUP PLANS TO SPIN OFF PORTION OF ITS SKYBOX UNIT NEW YORK BROOKE GROUP LTD SAID IT WILL SPIN OFF PART OF ITS SKYBOX INTERNATIONAL INC UNIT IN AN ATTEMPT TO REDUCE ITS POTENTIAL LIABILITY TO HOLDERS OF CERTAIN SECURITIES THE SECURITIES KNOWN AS CONTINGENCY VALUE RIGHTS WERE ISSUED TO SHAREHOLDERS AS PART OF A MERGER AGREEMENT IN 1990 BROOKE GROUP IN EFFECT GUARANTEED THAT ITS SHARES WOULD BE TRADING AT LEAST 1950 BY THIS NOV 15 AND THAT IF THE PRICE WERE BELOW THAT FIGURE THE RIGHTS COULD BE REDEEMED AT THE DIFFERENCE MINUS ANY DIVIDEND PAYMENTS ISSUED AFTER THE RIGHTS WITH BROOKE GROUP SHARES CURRENTLY TRADING IN THE 5 RANGE THE RIGHTS HAVE A POTENTIAL VALUE OF AROUND 14 A SHARE IF HOLDERS DEMAND PAYMENT BY FASHIONING THE PARTIAL SPINOFF OF ITS TRADING CARD COMPANY AS A DIVIDEND PAYMENT BROOKE GROUP SAYS IT SHOULD BE ABLE TO SUBSTANTIALLY REDUCE ITS LIABILITY TO RIGHTS HOLDERS STOCK IN THE SPINOFF WILL BE ISSUED SEPT 23 TO HOLDERS OF RECORD SEPT 14 ON THE BASIS OF ONE SKYBOX SHARE FOR EACH BROOKE SHARE HELD BROOKE GROUP DIDN'T GIVE AN EXPECTED VALUE FOR THE SKYBOX SHARES TO BE SPUN OFF IN NEW YORK STOCK EXCHANGE TRADING FRIDAY BROOKE GROUP SHARES GAINED 175 OR 47 TO CLOSE AT 550 THE CONTINGENCY RIGHTS WHICH TRADE SEPARATELY ON THE NEW YORK STOCK EXCHANGE CLOSED AT 575 UNCHANGED THE COMPANY HAS ABOUT 18 MILLION COMMON SHARES AND 3 MILLION RIGHTS OUTSTANDING IN 1992 BROOKE GROUP WHICH ALSO OWNS CIGARETTEMAKER LIGGETT GROUP INC HAD ABOUT 720 MILLION IN SALES THE DIVIDEND PLAN REQUIRE SECURITIES AND EXCHANGE COMMISSION APPROVAL THE COMPANY SAID IT WOULD RETAIN VOTING CONTROL OF SKYBOX 9309130002 930913 MARKETING & MEDIA ADVERTISING AMERICAN EXPRESS TRIES TO SERVE AN ACE TO VISA IN US OPEN AD BY KEVIN GOLDMAN THERE IS NO LOVE LOST BETWEEN AMERICAN EXPRESS AND VISA USA BUT THE LATEST AD FROM AMERICAN EXPRESS HAS HIT A NEW HIGH IN THE ESCALATING ANIMOSITY BETWEEN THE TWO RIVALS IN A SEARING DOUBLEPAGE ADVERTISEMENT WITH LANGUAGE DRIPPING WITH CONTEMPT AMERICAN EXPRESS ACCUSES VISA OF PERSUADING VENDORS AT THE US OPEN TENNIS TOURNAMENT TO STOP ACCEPTING AMERICAN EXPRESS ADS IN RETURN FOR PROMISING THEM MILLIONS IN ADVERTISING THE AD TITLED HOW VISA SEDUCES WELLKNOWN MERCHANTS INTO DROPPING THE AMERICAN EXPRESS CARD SAYS IN PART CUSTOMERS WHO DON'T HAVE A VISA OR MASTERCARD ARE TOLD THEY HAVE TO PAY CASH OR THEY CAN'T BUY ANYTHING HARDLY A CUSTOMERSENSITIVE PROGRAM BUT VISA DID GIVE THE OPEN AN EXPENSIVE COMMERCIAL IN ADDITION AMERICAN EXPRESS ALSO PRODUCED A SARCASTIC TELEVISION COMMERCIAL THAT WAS BROADCAST NATIONALLY OVER THE WEEKEND IN FOOTBALL GAMES AND THE US OPEN TELECAST AS WELL AS IN SELECT LOCAL NEWSCASTS THE AD SHOWED A BOUNCING TENNIS BALL AS THE ANNOUNCER REPEATED MANY CHARGES AGAINST VISA THAT WERE INCLUDED IN THE PRINT AD AND CONCLUDED THANKS TO VISA THIS YEAR'S OPEN IS ANYTHING BUT OPEN FORTUNATELY THE REST OF THE WORLD STILL ENJOYS COMPETITION THE ADS FROM WPP GROUP'S OGILVY & MATHER ARE THE NASTIEST SALVO YET IN THE GREAT CREDITCARD WAR IT COMES AS THE MEMBERSHIP RATE FOR THE AMERICAN EXPRESS CARD CONTINUES TO SLIDE AND VISA'S MEMBERSHIP STEADILY CLIMBS IT ALSO COMES AS VISA COMMANDS A 3TO1 EDGE OVER AMERICAN EXPRESS IN THE TOTAL NUMBER OF STORES AND RESTAURANTS WILLING TO ACCEPT THE VISA CARD AMERICAN EXPRESS'S NEW ASSAULT MAY ACTUALLY BACKFIRE EXPERTS SAY INSTEAD OF STIRRING ANGER AT VISA AMONG AMERICAN EXPRESS CARD HOLDERS IT MAY SIMPLY UNDERSCORE HOW DESPERATE AMERICAN EXPRESS IS BECOMING IN ITS BID TO HOLD ON TO MEMBERS AND SIGN UP NEW MERCHANTS STUPID CHILDISH AND ATROCIOUS SPENCER NILSON SAYS OF THE AMERICAN EXPRESS ONSLAUGHT THE PUBLISHER OF THE NILSON REPORT A SANTA MONICA CALIFBASED NEWSLETTER FOR THE CREDITCARD INDUSTRY ADDS NO ONE THERE HAS ANY SENSE OF ADVERTISING I DON'T UNDERSTAND WHY A COMPANY OF AMERICAN EXPRESS'S STATURE WOULD STOOP TO THIS I'VE BEEN IN THIS BUSINESS SINCE 1954 AND THIS TAKES THE CAKE IT'S THE WORST AD I'VE EVER SEEN THIS AD IS AN EXPRESSION AT ITS OWN FRUSTRATION SAYS ROBERT MCKINLEY PRESIDENT OF THE RAM RESEARCH CORP A CREDITCARD RESEARCH FIRM IN FREDERICK MD THEY'RE GETTING HAMMERED IN THE CONSUMER CARD CATEGORY HE SAYS AMERICAN EXPRESS HAS 243 MILLION CARD HOLDERS THIS YEAR DOWN FROM 258 MILLION A YEAR AGO AND 259 MILLION TWO YEARS AGO VISA BOASTS 1495 MILLION CARD HOLDERS UP 58 FROM LAST YEAR AND VISA IS TAKEN AT 35 MILLION DOMESTIC LOCATIONS COMPARED WITH 11 MILLION LOCATIONS THAT TAKE AMERICAN EXPRESS THE PRINT SALVO FROM THE GREENCARD COMPANY CARRIES AN ILLUSTRATION OF TWO MEN GLEEFULLY HOLDING A POOR SAP UPSIDE DOWN BY THE ANKLES AND SHAKING MONEY FROM HIS POCKETS MAYBE YOU'D LIKE THE VISA BANKS TO DROP THEIR INTEREST RATES A FEW PERCENTAGE POINTS INSTEAD OF VISA SPENDING MILLIONS OF DOLLARS ADVERTISING A SMOKE SCREEN THAT LIMITS YOUR CHOICES THE AD SAYS IF CUSTOMERS DON'T SPEAK UP ABOUT VISA'S DEAL WITH THE UNITED STATES TENNIS ASSOCIATION THE AD WARNS THERE WILL BE OTHERS AND WE'LL BE BACK TO TELL YOU ABOUT THEM THE ADS ARE A FAR CRY FROM THE TONY MEMBERSHIP HAS ITS PRIVILEGES CAMPAIGN AND SPOTS THAT SHOWED A LOVING COUPLE RELAXING TO THE TEMPTATIONS OLDIE MY GIRL IN THOSE ADS EVERYTHING TURNED OUT ALL RIGHT THANKS TO THE AMERICAN EXPRESS CARD VISA DISMISSES THE AD AS SOUR GRAPES BY AMERICAN EXPRESS BECAUSE WE ARE ABLE TO MAKE THE CLAIMS ABOUT SUPERIOR ACCEPTABILITY AND THEY AREN'T SAYS JAN SODERSTROM VISA'S SENIOR VICE PRESIDENT OF ADVERTISING READERS OF THE AD WHICH APPEARED IN THE NEW YORK TIMES YESTERDAY AND LAST FRIDAY WERE ENCOURAGED TO CALL A TOLLFREE TELEPHONE NUMBER IF YOU WANT A SAY IN HOW YOU SPEND YOUR MONEY AN AMERICAN EXPRESS SPOKESWOMAN SAYS THE NUMBER RECEIVED 2300 CALLS THE VAST MAJORITY IN SUPPORT WHAT IS PARTICULARLY GALLING TO SOME OBSERVERS IS THAT AMERICAN EXPRESS UNLOADS WITH BOTH BARRELS AGAINST VISA'S INTEREST RATES TODAY THE POWER AND INFLUENCE OF VISA CARDS HAVE ALLOWED THEM TO SELL PEOPLE ON THE IDEA THAT PAYING INTEREST RATES AS HIGH AS 18 ISN'T ONLY LEGAL IT'S AMERICAN AS APPLE PIE AMERICAN EXPRESS'S OWN CREDIT CARD OPTIMA CHARGES INTEREST RATES EXCEEDING 18 FOR CERTAIN DELINQUENT BORROWERS MS SODERSTROM SAYS AMERICAN EXPRESS IS BLOWING SMOKE BY RAISING THE INTEREST RATE ISSUE AND TRYING TO HIDE ITS INFERIOR ACCEPTABILITY AMONG EVERYONE INCLUDING CUSTOMERS SHE SAYS 95 OF AMERICAN EXPRESS CARD HOLDERS ALSO HAVE VISA THE TWO CREDITCARD GIANTS HAVE A HISTORY OF TAKING SHOTS AT ONE ANOTHER THERE IS FOR EXAMPLE THE HIGHLY SUCCESSFUL CAMPAIGN THAT EXTOLS LOCATIONS AND EVENTS WHERE VISA IS ACCEPTED BUT WHERE THEY DON'T TAKE AMERICAN EXPRESS VISA FOR INSTANCE PAID 20 MILLION TO BE THE OFFICIAL SPONSOR OF THE 1992 SUMMER OLYMPICS IN BARCELONA SPAIN AMERICAN EXPRESS COUNTERED THAT EFFORT WITH ADS THAT URGED PEOPLE TO BRING THEIR AMERICAN EXPRESS CARDS TO SPAIN AND REMEMBER TO VISIT SPAIN YOU DON'T NEED A VISA RECENTLY VISA PLACED FULLPAGE ADS PRODUCED BY OMNICOM GROUP'S BBDO IN PUBLICATIONS SUCH AS FORTUNE AND BUSINESS WEEK SHOWING HOW MERCHANTS WOULD BE BETTER OFF ACCEPTING VISA OVER ITS COMPETITOR BUT VISA DOESN'T TAKE THE OBVIOUS LOW ROAD IN ONE AD IT SAYS AMEX HAS A SPLENDID CARD CAN DELIVER A TON OF HOUSEHOLDS WITH INCOMES OVER 50000 THE AD CONTINUES VISA CAN BRING YOU MORE CUSTOMERS MORE AFFLUENT CUSTOMERS MORE WEALTHY CUSTOMERS AND MORE INCREDIBLY RICH CUSTOMERS THAN AMEX CAN IN THEIR WILDEST STATISTICAL DREAMS AMERICAN EXPRESS DIDN'T PRODUCE ITS LATEST AD IN RESPONSE TO VISA'S EFFORT IT PLACED THE AD BECAUSE CUSTOMERS ARE ANGRY THEY CAN'T USE THEIR AMERICAN EXPRESS CARDS ANYWHERE ON THE SITE OF THE TENNIS MATCHES SOMETHING THEY WERE ABLE TO DO LAST YEAR THE AMERICAN EXPRESS SPOKESWOMAN SAYS FURTHERMORE AMERICAN EXPRESS SAYS IT BELIEVES VISA IS PROMISING MERCHANTS A CHANCE TO STAR IN VISA COMMERCIALS IF THEY DROP AMERICAN EXPRESS MS SODERSTROM FLATLY DENIES THIS ADDING A ZINGER MERCHANTS DON'T NEED AN INCENTIVE TO DROP AMERICAN EXPRESS AND WILL VISA RESPOND TO AMERICAN EXPRESS'S LATEST SLAP IN THE WALLET MS SODERSTROM SAYS NO IT'S NOT NECESSARY SHE SAYS THIS ONE IS SO NASTY WE THINK WE'LL STAY ON THE SIDELINE SULLIVAN COMMUNICATIONS INC A PRINTER OF NEWSPAPER INSERTS BASED IN BRENTWOOD TENN FILED A FEDERAL LAWSUIT AGAINST ITS TWO BIGGEST RIVALS IN THE COUPONDISTRIBUTION BUSINESS ALLEGING THEY CONSPIRED TO MONOPOLIZE THE CENTSOFF COUPONS BUSINESS SULLIVAN'S LAWSUIT CHARGES THAT NEWS AMERICA FSI INC AND VALASSIS COMMUNICATIONS INC CONSPIRED TO CREATE DOUBTS ABOUT SULLIVAN'S FINANCES BY DISPARAGING THE COMPANY TO CUSTOMERS SULLIVAN A PRINTER OF COMICS AND OTHER NONCOUPON NEWSPAPER INSERTS LAST YEAR STARTED UP A UNIT TO PRINT AND DISTRIBUTE MANUFACTURERS' COUPONS ALSO KNOWN AS FREESTANDING INSERTS A 13 BILLION BUSINESS SULLIVAN NOW HAS ABOUT A 7 SHARE OF THE BUSINESS THE COMPANY SAID THE COMBINED MARKET SHARES OF VALASSIS 49OWNED BY CONSOLIDATED PRESS HOLDINGS LTD OF AUSTRALIA AND NEWS AMERICA OWNED BY NEWS CORP OF AUSTRALIA EXCEED 90 SULLIVAN SAYS SPOKESWOMEN FOR VLASSIS AND NEWS AMERICA DECLINED TO COMMENT ON THE SUIT WHICH WAS FILED IN FEDERAL COURT IN MANHATTAN 9309130001 930913 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE ON THE WHOLE AMERICANS HAVE HEALTHIER HABITS THAN THEY DID 10 YEARS AGO THOUGH THERE'S STILL ROOM FOR IMPROVEMENT THE ADULT POPULATION OF THE US SCORED AN AVERAGE OF 67 OUT OF 100 POINTS ON THE 10TH ANNUAL PREVENTION INDEX FROM PREVENTION MAGAZINE THE SCALE MEASURES 21 DOCUMENTED HEALTHPROMOTING BEHAVIORS WEIGHTING SOME MORE THAN OTHERS EXCEPT FOR A SLIGHT DROP IN 1988 THE SCORE HAS RISEN STEADILY SINCE IT WAS FIRST TABULATED AT 615 IN 1983 THE IMPROVEMENT MASKS SOME BACKSLIDING HOWEVER THE SHARE OF ADULTS WHO SMOKE DECLINED TO 25 IN 1991 FROM 30 IN 1983 THEN JUMPED TO 30 AGAIN IN 1992 THE SHARE OF ADULTS WHO ARE OVERWEIGHT CLIMBED TO 65 FROM 58 IN 1983 AND THE SHARE WHO AVOID CAFFEINE SLIPPED TO 27 FROM 37 IN 1985 THE FIRST YEAR CAFFEINE CONSUMPTION WAS TRACKED THE PROPORTIONS OF ADULTS WHO GET REGULAR CHECKUPS AND MEDICAL TESTS ARE SUBSTANTIAL BUT THEY HAVEN'T IMPROVED IN THE PAST FEW YEARS EATING HABITS HAVEN'T CHANGED MUCH EITHER THE SHARE WHO AVOID TOO MUCH FAT WAS 58 UP JUST SLIGHTLY FROM 55 IN 1983 AND THE SHARE WHO AVOID TOO MUCH SUGAR AND SWEETS DECLINED TO 46 FROM 51 IN 1983 THE GOOD NEWS IS SLOW BUT STEADY IMPROVEMENT ON VARIOUS FRONTS THE SHARE WHO DON'T DRINK ALCOHOL AT ALL GREW TO 40 FROM 34 IN 1983 AS DID THE SHARE WHO EXERCISE AT LEAST THREE TIMES A WEEK THE SHARE OF WOMEN WHO DO A BREAST SELFEXAM AT LEAST ONCE A MONTH INCREASED TO 50 FROM 37 IN 1983 THE SHARE OF ADULTS WHO ALWAYS WEAR A SEAT BELT IN VEHICLES INCREASED TO 71 FROM JUST 19 IN 1983 THAT MAY RESULT MORE FROM NEW LAWS THAN COMMON SENSE ABOUT 73 OF THOSE IN STATES MANDATING SEATBELT USE ALWAYS BUCKLE UP COMPARED WITH 42 IN STATES WITHOUT SUCH LAWS SOME THINGS NEVER CHANGE ABOUT 13 OF AUTOMOBILE DRIVERS AGED 18 TO 29 SAID THEY NEVER OBEY THE SPEED LIMIT COMPARED WITH JUST 1 OF THOSE 65 OR OLDER OLDER MARRIED WOMEN ARE MORE LIKELY TO WORK THAN THEY USED TO BE WHILE OLDER SINGLE WOMEN ARE LESS LIKELY TO WORK IN 1972 75 OF NEVERMARRIED WOMEN AGED 55 TO 59 WERE IN THE LABOR FORCE COMPARED WITH JUST 41 OF THEIR MARRIED COUNTERPARTS ACCORDING TO THE FEDERAL BUREAU OF LABOR STATISTICS BY 1992 HOWEVER THE SHARE OF WORKING SINGLES IN THEIR LATE 50S HAD DECLINED TO 63 WHILE THE SHARE OF MARRIED WORKING WOMEN HAD GROWN TO 54 THE TREND IS SIMILAR FOR WOMEN AGED 60 TO 64 THOUGH THE RATES ARE LOWER IN 1972 58 OF SINGLE WOMEN IN THEIR EARLY 60S WERE IN THE LABOR FORCE COMPARED WITH 28 OF MARRIED WOMEN BY 1992 THE GAP HAD NARROWED WITH A RATE OF 48 FOR SINGLES AND 32 FOR WIVES THE RATE FOR WIDOWED AND DIVORCED WOMEN IN BOTH AGE GROUPS STAYED ABOUT THE SAME DURING THE PERIOD WITH 66 OF THOSE AGED 55 TO 59 IN THE WORK FORCE AND 44 OF THOSE AGED 60 TO 64 BECAUSE MOST WOMEN IN THEIR LATE 50S ARE MARRIED THEIR RISING PARTICIPATION IN THE WORK FORCE BOOSTED THE RATE FOR THE ENTIRE AGE GROUP TO 57 IN 1992 FROM 48 IN 1972 THE TREND IS LESS PRONOUNCED AMONG WOMEN IN THEIR EARLY 60S THE OVERALL RATE FOR THAT AGE GROUP GREW SLIGHTLY TO 37 IN 1992 FROM 35 IN 1972 BLS ECONOMISTS SUGGEST THAT LABOR RATES FOR NEVERMARRIED WOMEN AGED 55 TO 64 MAY BE DECLINING BECAUSE THEY'RE MORE LIKELY THAN THEY WERE IN THE PAST TO HAVE WORKED MUCH OF THEIR ADULT LIVES AND TO HAVE JOBS WITH PENSION PLANS SO THEY CAN BETTER AFFORD TO TAKE EARLY RETIREMENT THE HIGHER RATE OF OLDER MARRIED WOMEN IN THE WORK FORCE REFLECTS THE RAPID GROWTH IN EMPLOYMENT AMONG MARRIED WOMEN OF ALL AGES WIVES WERE THE LAST GROUP OF WOMEN TO ENTER THE WORKPLACE IN FORCE AND THEY'RE STARTING TO CATCH UP WITH NEVERMARRIED DIVORCED AND WIDOWED WOMEN PLACING A FAMILY MEMBER IN A NURSING HOME IS OFTEN A LAST RESORT ACCOMPANIED BY FEELINGS OF GUILT AND DEPRESSION LOIS GRAU OF THE ROBERT WOOD JOHNSON MEDICAL SCHOOL AND COLLEAGUES SURVEYED 422 FAMILY MEMBERS OF PATIENTS AT TWO NEW YORKAREA NURSING HOMES WHO WERE DESIGNATED BY THE HOMES AS THE RESPONSIBLE PARTY ABOUT 45 OF CAREGIVERS WERE DAUGHTERS 20 WERE SONS 13 WERE SPOUSES AND 22 WERE OTHER RELATIVES INCLUDING SIBLINGS OF PATIENTS AS MIGHT BE EXPECTED SPOUSES PROVIDED THE MOST CARE BEFORE THEIR HUSBANDS OR WIVES WERE INSTITUTIONALIZED AND THEY EXPERIENCED THE HIGHEST LEVEL OF DEMORALIZATION AFTERWARD AS MEASURED THROUGH A VARIETY OF QUESTIONS ABOUT ANXIETY LEVELS SELFESTEEM FEELINGS OF HOPELESSNESS AND SADNESS SPOUSES ALSO FELT MORE WORRY AND GUILT THAN OTHER RELATIVES OVER PLACING A LOVED ONE IN A HOME DAUGHTERS AND OTHER RELATIVES OF NURSINGHOME PATIENTS FELT BAD BUT NOT AS BAD AS SPOUSES SONS WERE LEAST DEMORALIZED BY PUTTING A PARENT INTO A NURSING HOME THOUGH HAVING A MENTALLY CONFUSED PARENT BOTHERED THEM MORE THAN IT DID OTHERS THE STUDY ALSO FOUND THAT FEELINGS OF GUILT AND WORRY DON'T SUBSIDE OVER TIME MARRIED WOMEN WHO WORK PROVIDE ABOUT ONETHIRD OF THEIR FAMILY'S INCOME ON AVERAGE THE SHARE VARIED LITTLE FOR THOSE WITH CHILDREN UNDER 18 AND THOSE WITHOUT COMING IN AT 30 AND 33 RESPECTIVELY DATA FROM THE BLS ALSO SHOWED THAT JUST OVER HALF OF WIVES WORK FULL TIME AND YEARROUND AND THEY CONTRIBUTE 41 OF FAMILY INCOME A 1991 SURVEY FROM OHIO STATE UNIVERSITY FOUND THAT 63 OF WORKERS AGED 26 TO 34 WHO HAVE RECEIVED FORMAL ONTHEJOB TRAINING ARE MEN HOWEVER 54 OF THOSE WHO HAVE RECEIVED SEMINAR AND OTHER TRAINING OUTSIDE THE WORKPLACE ARE WOMEN WOMEN ALSO MAKE UP THE VAST MAJORITY OF THOSE WHO GET VOCATIONAL TRAINING AT A BUSINESS SCHOOL WHILE MEN MAKE UP THE LION'S SHARE OF THOSE WHO GO THROUGH APPRENTICESHIP PROGRAMS THE STUDY FOUND 9309130154 930811 RULE OF LAW OUR ARCHAIC ADOPTION LAWS BY CHARLOTTE ALLEN IT WAS SO HEARTRENDING AS TO SEEM A MEDIA CLICHE THAT FRONTPAGE PHOTOGRAPH OF 2 1/2YEAROLD JESSICA DEBOER SCREAMING FOR THE ONLY MOTHER SHE HAD EVER KNOWN AS SHE WAS FORCED BY COURT ORDER INTO A VAN TO BEGIN A JOURNEY OF HUNDREDS OF MILES TO A STRANGE NEW HOME A STRANGE NEW COUPLE WHO CALLED THEMSELVES HER PARENTS AND EVEN A STRANGE NEW NAME THIS SAD AND PROTRACTED LEGAL TUG OF WAR BETWEEN THE COUPLE IN IOWA WHO HAD CONCEIVED THE LITTLE GIRL WHOM THEY CALL ANNA AND THE MICHIGAN COUPLE WHO TOOK HER IN WHEN SHE WAS TWO DAYS OLD OCCURRED BECAUSE OF A BREAKDOWN IN THE LAW OF ADOPTION A LEGAL SYSTEM SET UP DECADES AGO TO PROVIDE HOMES FOR INFANTS BORN TO WOMEN FACING THE STIGMA OF UNWED MOTHERHOOD RAN SMACK INTO THE SOCIAL REALITY OF THE '90S WHEN PARENTING WITHOUT BENEFIT OF CLERGY IS NO LONGER SO DISGRACEFUL AND THE COURTS PAY MORE CARE TO THE RIGHTS OF BIOLOGICAL MOTHERS AND FATHERS DURING THE MORE THAN TWO YEARS OF LEGAL BATTLES OVER BABY JESSICA ALL THE ADULTS JUDGES LAWYERS WRANGLING COUPLES FORGOT THE PRIMARY GOAL THAT SHOULD INFORM EVERY ADOPTION PROCEEDING A SPEEDY AND FINAL DECISION ABOUT THE CHILD'S FATE SO AS TO MINIMIZE PSYCHIC HARM TO HER WITH EVERY PASSING DAY JESSICA BECAME MORE ATTACHED TO JAN AND ROBERTA DEBOER THE COUPLE WHO LOST HER LAST WEEK AND LESS LIKELY TO MAKE AN EASY TRANSITION TO THE HOME OF HER BIOLOGICAL PARENTS DANIEL AND CARA SCHMIDT UNTIL THE LATE '60S THE MAJORITY OF ADOPTIONS INVOLVED AN UNWED MOTHER IN A BIND ABORTION WAS GENERALLY ILLEGAL AND A CHILDLESS COUPLE THE GENERAL THINKING WAS THAT IT WAS IN EVERYONE'S BEST INTEREST TO SEVER CONNECTIONS BETWEEN OLD AND NEW FAMILIES PROMPTLY AND COMPLETELY HENCE A CONCERN WITH ANONYMITY STATE ADOPTION LAWS HAVE ALWAYS REQUIRED THE BIRTH MOTHER'S CONSENT BUT THERE WERE FEW PROVISIONS TO SAFEGUARD THE INTERESTS OF THE UNWED FATHER WHO WAS PRESUMED TO HAVE NO RIGHTS OR RESPONSIBILITIES WITH RESPECT TO HIS ILLEGITIMATE OFFSPRING OVER THE PAST TWO DECADES EVERYTHING HAS CHANGED EXCEPT THE LEGAL FRAMEWORK NOW ABOUT 60 OF THE 160000 OR SO CHILDREN ADOPTED EVERY YEAR IN THE US ARE ADOPTED BY RELATIVES OR STEPPARENTS ONLY A TINY PERCENTAGE OF UNWED MOTHERS PUT THEIR CHILDREN UP FOR ADOPTION WITH SINGLE PARENTHOOD'S GROWING ACCEPTABILITY THE ANONYMITY SURROUNDING ADOPTIONS IS NO LONGER SUCH A STRONG CONSIDERATION OPEN ADOPTIONS IN WHICH THE ADOPTIVE PARENTS MAINTAIN SOME DEGREE OF CONTACT WITH THE BIRTH MOTHER ARE NOT UNUSUAL COURTS AND LAWMAKERS HAVE BECOME INCREASINGLY CONCERNED WITH ENSURING THAT THE BIRTH MOTHER'S CONSENT IS TRULY VOLUNTARY ESTABLISHING WAITING PERIODS AND OTHER PROTECTIONS FOR HER THE GREATEST REVOLUTION IN ADOPTION LAW AND THE ONE WITH THE MOST IMPLICATIONS FOR JESSICA'S CASE WAS THE RECOGNITION VIA A SERIES OF SUPREME COURT DECISIONS STARTING IN 1972 THAT IF UNWED MOTHERS HAD A RIGHT TO VETO AN ADOPTION SO DID UNWED FATHERS WHO MOVED PROMPTLY TO SUPPORT THEIR OFFSPRING LESS CLEAR IS THE LEGAL STATUS OF THE THWARTED FATHER WHO IS PREVENTED BY THE MOTHER FROM ESTABLISHING A RELATIONSHIP WITH HIS NEWBORN CHILD WITH BIOLOGICAL MOTHERS AND FATHERS NOW CLAIMING RIGHTS AND INTERESTS HOSTILE TO THOSE OF PROSPECTIVE ADOPTIVE PARENTS A NEW PHENOMENON HAS BECOME COMMON THE CONTESTED ADOPTION FOUGHT OUT IN COURT IT WAS INTO THIS LEGAL MORASS THAT AN UNMARRIED CARA CLAUSEN BORE HER BABY GIRL ON FEB 8 1991 A MERE 40 HOURS LATER SHE SIGNED AWAY HER PARENTAL RIGHTS IN VIOLATION OF IOWA'S MANDATORY 72HOUR WAITING PERIOD BEFORE A LAWYER REPRESENTING THE DEBOERS A FEW DAYS LATER THE MAN WHO MS CLAUSEN SAID FALSELY WAS THE BABY'S FATHER ALSO SIGNED A CONSENT FORM THE DEBOERS ACTING WITH UNDERSTANDABLE SPEED TO REGULARIZE THEIR RELATIONSHIP WITH JESSICA FILED A PETITION FOR ADOPTION IN THE IOWA DISTRICT COURT ON FEB 25 ON FEB 27 MS CLAUSEN INFORMED THE REAL BIOLOGICAL FATHER DANIEL SCHMIDT ABOUT THE BABY MS CLAUSEN PROMPTLY FILED A PETITION TO INVALIDATE HER CONSENT AND MR SCHMIDT SOUGHT TO BLOCK THE ADOPTION HE HAD NOT BEEN THE BEST OF PARENTS IN THE PAST HE HAD TWO OLDER CHILDREN HE NEITHER SAW NOR SUPPORTED MUCH COURT RECORDS INDICATE BUT HE SEEMED GENUINELY CONCERNED ABOUT HIS NEW DAUGHTER HE AND MS CLAUSEN MARRIED IN APRIL 1992 AND HAD ANOTHER CHILD THE IOWA COURTS OPTED FOR A SIMPLE APPROACH THAT IGNORED THE DEBOERS' CLAIMS AND CARA'S AND JESSICA'S FOR THE MOST PART TO FOCUS ALMOST EXCLUSIVELY ON MR SCHMIDT'S CONTENTION THAT HE HAD A NEARABSOLUTE RIGHT TO VETO HIS DAUGHTER'S ADOPTION WHEN THE CASE WAS RECAST IN THAT LIGHT MR SCHMIDT'S FATHERLY RIGHTS VS A WEAKER CONTENTION THAT HE WAS NOT AS WORTHY A PARENT AS THE DEBOERS HE HAD TO WIN THE STATE CANNOT INTERFERE WITH THE RIGHTS OF NATURAL PARENTS SIMPLY TO BETTER THE MORAL AND TEMPORAL WELFARE OF THE CHILD AS AGAINST AN UNOFFENDING PARENT RULED THE IOWA SUPREME COURT LAST SEPTEMBER QUOTING A STANDARD LEGAL TREATISE THE MICHIGAN COURTS AND THE US SUPREME COURT AGREED THE GENERAL PRINCIPLE THAT THE IOWA HIGH COURT ENUNCIATED WAS A NOBLE ONE OTHERWISE PARENTS WHO DID NOT SAY GO TO LAW SCHOOL MIGHT BE JUDGED UNWORTHY TO RAISE THEIR OWN CHILDREN BUT IT IS CLEAR NONETHELESS THAT SOMETHING WENT HORRIBLY WRONG IN THIS CASE THE SCHMIDTS PROBABLY HAD A RIGHT TO BE DECLARED JESSICA'S PARENTS AND THEY PROBABLY HAD A RIGHT TO PREVENT THE DEBOERS FROM ADOPTING HER BUT DID THEY HAVE A RIGHT TO FORCE HER TO MOVE OUT OF HER HOME AND SEVER ALL TIES TO THE PEOPLE SHE LOVED MORE THAN ANYONE ON EARTH I THINK THAT IS ONE OF THE MOST TROUBLESOME ASPECTS OF THIS CASE SAYS JOAN HOLLINGER A VISITING LAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WHO IS DRAFTING A UNIFORM ADOPTION ACT FOR ALL STATES EVEN IF THE FATHER'S RIGHTS ARE NOT TERMINATED THAT'S A SEPARATE ISSUE FROM THE ISSUE OF APPROPRIATE CUSTODY FOR THE CHILD FOR A TODDLER LIKE JESSICA IT MIGHT HAVE BEEN APPROPRIATE FOR THE COURT TO DECIDE THAT THE DEBOERS HAD BECOME HER PARENTS IN FACT IF NOT IN BLOOD THERE HAVE BEEN MANY SUGGESTIONS FOR ENSURING THAT THERE ARE NO MORE CASES LIKE JESSICA'S SEPARATE OUT QUESTIONS OF CUSTODY IN CONTESTED ADOPTIONS FROM QUESTIONS OF TERMINATION OF RIGHTS MANDATE MORE LEGAL PROTECTIONS INDEPENDENT LAWYERS AND NEUTRAL COUNSELING FOR BIRTH MOTHERS THE MOST IMPORTANT GOAL OF ALL HOWEVER SHOULD BE TO SET UP A PROCESS THAT ALLOWS ALL OF THESE MATTERS TO BE DECIDED QUICKLY AND FOR GOOD IN ORDER TO MINIMIZE HARM TO THE CHILDREN WE MIGHT REMEMBER THAT SOLOMON'S PARTICULAR WISDOM WHEN HE JUDGED A QUESTION OF PARENTHOOD WAS TO ACT WITH DISPATCH MRS ALLEN IS A WRITER IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR LAWS THAT MAKE CHILDREN CHATTEL WSJ SEPT 13 1993 9308110114 YY93 MM09 9309130092 930802 MANAGER'S JOURNAL SPEECHWRITERS OF THE WORLD GET LOST BY PHIL THEIBERT I HAVE BEEN A CORPORATE SPEECHWRITER FOR OVER 10 YEARS I DON'T MEAN TO OFFEND ANYONE BUT MOST OF THE SPEECHES TOP EXECUTIVES GIVE STINK AND BECAUSE EXECUTIVES ARE SURROUNDED BY PEOPLE WANTING FAVORS OR CONTRACTS OR SIMPLY BY PEOPLE WHO'VE GROWN ACCUSTOMED TO GETTING A REGULAR PAYCHECK THEY NEVER HEAR THE TRUTH ABOUT THEIR SPEECHES IF YOU'RE GIVING A SPEECH LET ME OFFER SOME ADVICE FIRST WRITE IT YOURSELF DON'T HAVE A SPEECHWRITER DO IT FOR YOU SPEECHWRITERS JUSTIFY THEIR JOBS BY PUTTING IN WITTY QUOTES AMUSING ANECDOTES AND REAMS OF STATISTICS THIS MAY IMPRESS THE SPEAKER BUT IT ALSO CREATES A TOWER OF BABEL THAT NO LISTENER CARES TO SCALE WHY WELL HERE'S A DIRTY LITTLE SECRET FEW SPEECHWRITERS WILL TELL YOU AUDIENCES RARELY CARE HOW WITTY OR AMUSING YOU ARE THEY HAVE TWO GOALS IN MIND THEY WANT TO HEAR YOUR POINTS AS DIRECTLY AND SIMPLY AS POSSIBLE AND THEY WANT TO GET THE HELL OUT OF THERE THE BEST WAY TO APPROACH A SPEECH FORGET ABOUT ELOQUENCE WE DON'T LIVE IN AN AGE OF ELOQUENCE OVER HALF THE PEOPLE IN YOUR AUDIENCE HAVE GROWN UP WITH MTV THEIR ATTENTION SPAN IS LIMITED TO SOUND BITES ON THE EVENING NEWS THERE ARE ONLY TWO ELEMENTS THAT MAKE A SPEECH GREAT SINCERITY AND BREVITY I'VE OFTEN TALKED TO CHIEF EXECUTIVES AND THEY WANT TO KNOW WHAT THEY SHOULD SAY THAT'S EASY TELL THE AUDIENCE WHAT YOU REALLY BELIEVE IN YOUR HEART AND IF YOU DON'T GIVE A DAMN ABOUT THE TOPIC DON'T GIVE THE DAMN SPEECH IF YOU DON'T CARE YOUR AUDIENCE SURELY WON'T IF YOU'RE GIVING A SPEECH DIG DOWN DEEP FIND OUT WHAT YOUR BELIEFS REALLY ARE AND HIT YOUR AUDIENCE BETWEEN THE EYES WITH THEM AND DON'T FORGET THAT ANY SPEECH IS ONLY 20 TEXT AND 80 SPEAKER IF YOU'RE NOT SINCERE IF YOUR SOUL DOESN'T COME THROUGH IN THAT SPEECH YOU WILL HEAR SNORING FROM THE FRONT ROW ALL THE WAY BACK TO THE EXIT DOOR ANOTHER THING THERE WAS ONCE A PRESIDENT FROM MISSOURI HE BELIEVED IN PLAIN SPEAKING PLAIN SPEAKING REALLY COMPRISES JUST THREE SIMPLE RULES COMMUNICATION GURUS CAN'T JUSTIFY THEIR EXISTENCE IF YOU REMEMBER THESE POINTS LET ME GIVE YOU TWO QUICK EXAMPLES I'VE PULLED FROM SPEECHES THAT HAVE CROSSED MY DESK SOME SLIGHT EDITING HAS BEEN DONE TO SPARE THE EXECUTIVES IN QUESTION ANY ANGUISH A BAD EXAMPLE MY ASSOCIATES KNOW I HAVE AN ABIDING INTEREST IN THE PERSONALITY AND THE WRITINGS OF WINSTON CHURCHILL IF YOU EXAMINE HIS SPEECHES HIS HISTORY OF THE ENGLISHSPEAKING PEOPLES' AND HIS HISTORY OF THE SECOND WORLD WAR OKAY ENOUGH FIRST NOBODY REALLY CARES ABOUT OLD WINSTON ANYMORE MOST OF THE PEOPLE HE INSPIRED ARE DEAD I'LL MAKE YOU A BET THAT HALF YOUR AUDIENCE WILL HAVE TROUBLE EVEN IDENTIFYING WHO HE WAS AND THAT HOLDS TRUE WITH ANY AUDIENCE SECOND THE SPEECH IS NOT ABOUT WINSTON IT'S NOT ABOUT YOUR ADMIRATION FOR WINSTON IN FACT I'M NOT QUITE SURE WHAT THE SPEECH WAS ABOUT I NEVER GOT DOWN THAT FAR CONTRARILY HERE IS A GOOD EXAMPLE TAKEN FROM A FUNDRAISING SPEECH PLAIN AND SIMPLE WE NEED MONEY TO RUN THE FOUNDATION JUST LIKE YOU NEED MONEY TO DEVELOP NEW PRODUCTS WE NEED MONEY TO MAKE THIS WORK WE NEED MONEY FROM YOU PICK UP THAT PLEDGE CARD FILL IT OUT TURN IT IN AT THE DOOR AS YOU LEAVE MAKE A STATEMENT ABOUT YOUR COMMITMENT MAKE IT A BIG STATEMENT I LIKE THAT CLOSING BOOM BOOM BOOM HERE ARE THE FACTS NOW ACT ON THEM REMEMBER KEEP IT SIMPLE KEEP IT PLAIN TELL THEM THE TRUTH AND GET THE HELL OUT OF THERE BE BRIEF BE SINCERE FINALLY WHEN IT COMES TO BAD OR UNCOMFORTABLE NEWS PEOPLE WANT THE TRUTH RIGHT BETWEEN THE EYES IF SOMEONE LISTENS TO YOUR SPEECH AND SAYS I DON'T AGREE WITH WHAT HE SAYS BUT HE GAVE IT TO ME STRAIGHT YOU HAVE DONE YOUR JOB MR THEIBERT LIVES IN PHOENIX AND IS A SPEECHWRITER FOR A LARGE WESTERN UTILITY SEE RELATED LETTERS LETTERS TO THE EDITOR WORDSMITHS OF THE WORLD FORGE AHEAD WSJ SEPT 13 1993 9308020143 YY93 MM09 9309100203 930910 TWO CANDIDATES FOR KODAK CEO REJECT INTEREST DIRECTORS CONTINUE REVIEW SCULLEY GAINS SUPPORT OF ONE PHOTOFINISHER BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL TWO OF THE MEN ON EASTMAN KODAK CO'S SHORT LIST OF CANDIDATES FOR CHIEF EXECUTIVE OFFICER RULED THEMSELVES OUT OF THE RACE AS THE COMPANY'S BOARD BEGAN REVIEWING THEIR NAMES IT WAS UNCLEAR WHEN THE BOARD WHICH CONTINUES ITS REGULAR MEETING TODAY WOULD DECIDE WHICH CANDIDATES TO WOO OR WHETHER THE BOARD WOULD ASK ITS SEARCH FIRM FOR A WHOLE NEW LIST OF NAMES A SPOKESMAN FOR THE ROCHESTER NY PHOTOGRAPHY HEALTH CARE AND CHEMICALS COMPANY DECLINED TO COMMENT STANLEY GAULT CHAIRMAN AND CHIEF EXECUTIVE OF GOODYEAR TIRE & RUBBER CO SAID IN A NEWS RELEASE THAT HE HAS ABSOLUTELY REFUSED TO TALK ABOUT ANY POSITION WITH A COMPANY OTHER THAN GOODYEAR CHARLES KNIGHT CHAIRMAN AND CHIEF EXECUTIVE OF EMERSON ELECTRIC CO SAID HE IS NOT A CANDIDATE FOR THE POSITION OTHERS ON THE LIST INCLUDING APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY DIDN'T RETURN PHONE CALLS HOWEVER MR SCULLEY GOT AN UNUSUAL VOTE OF CONFIDENCE YESTERDAY A PHOTOFINISHER AND KODAK CUSTOMER 30 MINUTE PHOTOS ETC OF IRVINE CALIF ISSUED A RELEASE URGING OTHER PHOTOFINISHERS TO CALL KODAK AND ITS SEARCH FIRM HEIDRICK & STRUGGLES TO INSIST THAT KODAK CHOOSE MR SCULLEY AS ITS NEW CEO MITCHELL GOLDSTONE WHO OWNS 30 MINUTE PHOTOS ISN'T FAZED BY CRITICISM OF MR SCULLEY ALTHOUGH HE STEERED APPLE THROUGH COMPUTER PRICE WARS MR SCULLEY HAS BEEN CRITICIZED FOR BEING CONSISTENTLY LATE TO MARKET WITH CRUCIAL PRODUCTS SUCH AS A COLOR MONITOR AND A LOWCOST PERSONAL COMPUTER WHAT'S MORE CRITICS SAY MR SCULLEY MISSED A CHANCE TO LICENSE APPLE'S OPERATING SYSTEM TO OTHER COMPUTER MAKERS THUS ALLOWING RIVAL MICROSOFT CORP TO SEIZE THAT MARKET WITH ITS WINDOWS OPERATING SYSTEM MR GOLDSTONE STANDS BY HIS STATEMENT THAT MR SCULLEY HAS THE UNIQUE ABILITY TO REINVENT KODAK'S CORPORATE STRUCTURE WITH DYNAMIC VISION HE SAYS HE'S SO EXCITED ABOUT MR SCULLEY THAT HE FELL OFF HIS TREADMILL YESTERDAY MORNING WHEN HE READ MR SCULLEY'S NAME ON A SHORT LIST OF CANDIDATES IN THE WALL STREET JOURNAL KODAK HAS BEEN SEARCHING FOR A NEW CEO SINCE AUGUST WHEN THE BOARD ANNOUNCED THE OUSTER OF KAY R WHITMORE THE BOARD SAID MR WHITMORE 61 YEARS OLD LACKED A VISION FOR THE COMPANY AND HAD MOVED TOO SLOWLY TO CUT COSTS HE WILL STEP DOWN WHEN HIS SUCCESSOR IS NAMED WHICH IS EXPECTED TO BE BEFORE YEAR'S END IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY KODAK ROSE 75 CENTS TO 5975 9309100201 930910 EXECUTIVE EDUCATION A SPECIAL REPORT SCHOOL DAYS ADVENTURES IN LEARNING FORGET THE CLASSROOM THESE DAYS SCHOOL IS HELD JUST ABOUT ANYWHERE BY CARRIE DOLAN CARMEL VALLEY CALIF IT'S A SUNNY TUESDAY AFTERNOON AND A DOZEN PEOPLE ARE SEATED ON WHITE LAWN CHAIRS LISTENING TO AN INSTRUCTOR TALK ABOUT THE AERODYNAMICS OF GOLF AFTERWARD THEY EACH HIT A BUCKET OF BALLS THEN PUTTER OFF IN GOLF CARTS TO PLAY NINE HOLES AT THIS CHALLENGING COURSE SITUATED ON A 1700ACRE RESORT IN THE EVENING THERE ARE COCKTAILS DINNER AND A VIDEO ANALYSIS OF EACH PERSON'S SWING BY A GOLF COACH THEN THE GOLFERS WALK PAST FLOWERS TREES AND SPAS AND RETIRE TO THEIR SUITES WHICH HAVE A FIREPLACE IN THE BEDROOM AND THE BEST PART OF ALL THIS IS SCHOOL MORE PRECISELY IT'S THE ULTIMATE PERFORMANCE TRAINING EXPERIENCE AN EDUCATIONAL SEMINAR TAUGHT BY J MITCHELL PERRY A FORMER FAMILY COUNSELOR WHO NOW DOES CORPORATE TRAINING EACH PARTICIPANT'S EMPLOYER HAS PAID 3000 FOR 2 1/2 DAYS OF INSTRUCTION SOME OF IT IN THE CLASSROOM BUT MUCH OF IT ON THE LINKS STILL THE COURSE DOESN'T HAVE A LOT TO DO WITH GOLF SAYS RUSSELL SNOW A FIRST INTERSTATE BANK EXECUTIVE VICE PRESIDENT DECKED OUT IN A PANAMA HAT SHORTS AND BLACK AND WHITE GOLF SHOES IT'S TO IMPROVE PERFORMANCE TO UNDERSTAND HOW THE MIND WORKS AND CAPITALIZE ON THAT HE SAYS HIS CORPORATION WHICH HAS SENT OTHERS THROUGH THIS PROGRAM IS LOOKING FOR ALTERNATIVE WAYS OF THINKING WE WANT TO MAKE LOANS BUT WE DON'T WANT TO MAKE THEM THE WAY WE USED TO GETTING OUT OF THE CLASSROOM FOR SCHOOLING IS GAINING ACCEPTANCE IN THE CORPORATE WORLD SAYS BABS BAKER EXECUTIVE DIRECTOR OF THE ASSOCIATION OF EXPERIENTIAL EDUCATION IN BOULDER COLO IT'S A FUN WAY TO LEARN TRADITIONAL METHODS HAVE STYMIED THE GROUP BOASTS MORE THAN 500 MEMBERS THAT OFFER ALL SORTS OF NONTRADITIONAL FARE TO CORPORATE CLIENTS IN THEIR COURSES THE DESKBOUND EXECUTIVE CAN CLIMB FROZEN WATERFALLS KAYAK IN THE OCEAN EXPLORE CAVES AND PERHAPS THE SCARIEST ACTIVITY OF THEM ALL FALL BACKWARD INTO A CIRCLE OF COWORKERS THE EXPERIENCE OF LETTING GO AND FALLING INTO THE ARMS OF PEOPLE WHO ARE THERE FOR YOU IS VERY POWERFUL SAYS MS BAKER PEG HOWELL SALES DIRECTOR FOR OUTWARD BOUND'S PROFESSIONAL DEVELOPMENT DIVISION IS SEEING PLENTY OF THE LATTER COMPANIES AFTER ALL THE GUTWRENCHING MASSIVE CHANGE OF DOWNSIZING PEOPLE ARE FROZEN SHE SAYS THE SURVIVORS HAVE TO COME TOGETHER IN A NEW WAY OUTWARD BOUND THE GRANDDADDY OF THE ADVENTURETRAINING FIELD EXPECTS ITS CORPORATE BUSINESS TO BE UP ABOUT 50 THIS YEAR REBOUNDING AFTER TWO WEAK YEARS WHEN BUSINESS WAS HURT BY THE RECESSION THOUGH THE COMPANY'S PROGRAMS WHICH COST ABOUT 300 PER PERSON PER DAY INCLUDE SUCH RIGOROUS ACTIVITIES AS MOUNTAINEERING AND DOGSLEDDING IN NORTHERN MINNESOTA WE CAN ACCOMMODATE VERY SEDENTARY LIVES MS HOWELL SAYS THEN AGAIN IT DEPENDS UPON YOUR DEFINITION OF SEDENTARY FOR INSTANCE MS HOWELL SAYS THAT INSTEAD OF MOUNTAIN CLIMBING AT 14000 FEET WE COULD DO IT AT 9000 FEET SO NO ONE HAS AN ALTITUDE PROBLEM ALL OUTWARD BOUND PARTICIPANTS HAVE TO PASS A BASIC MEDICAL SCREENING TO MAKE SURE THEY DON'T FALL INTO HIGHRISK CATEGORIES SUCH AS THOSE WITH HEART CONDITIONS PEOPLE WITH SPECIAL CONDITIONS CAN OBSERVE AND PARTICIPATE IN THE DEBRIEFING SESSIONS AFTERWARD ADVENTURE TRAINING ALLOWS WORKERS TO LEARN THINGS IN MEMORABLE METAPHORICAL WAYS MS HOWELL SAYS COMPANIES THAT NEED TO WORK ON TEAM BUILDING FOR INSTANCE SEND WORKERS WHITEWATER RAFTING THOSE WHO NEED TO STRESS PARTNERSHIPS SEND EMPLOYEES CANOEING TO BUILD TRUST TRY ROCKCLIMBING WITH YOUR BOSS IT BECOMES VERY CLEAR VERY QUICKLY HOW MUCH YOU TRUST A PERSON WHEN THEY'RE THE ONE HOLDING YOUR ROPE SAYS MS HOWELL FOR OTHER CORPORATIONS CHEAPER AND LESS THRILLING ADVENTURES DO JUST FINE WAKE FOREST UNIVERSITY IN WINSTONSALEM NC ONCE REQUIRED OUTWARD BOUND TRAINING FOR CERTAIN MBA STUDENTS BUT DROPPED THE PROGRAM IN 1990 BECAUSE IT WAS TOO EXPENSIVE AND SOME STUDENTS DIDN'T ENJOY IT NOW THE UNIVERSITY PUTS STUDENTS THROUGH THE WORLD BUSINESS GAMES WHICH INCLUDE SUCH ACTIVITIES AS HAVING TEAMS MAKE A VEHICLE OUT OF PLYWOOD AND SEVERAL HUNDRED TENNIS BALLS A SPOKESWOMAN FOR THE UNIVERSITY SAYS IT FEELS THE GAMES TEACH MANY OF THE SAME SKILLS AS MORE EXPENSIVE PROGRAMS THE HUGE GROWTH IN INTEREST IN EXPERIENTIAL TRAINING IS AN ACKNOWLEDGEMENT THAT PASSIVE LEARNING TECHNIQUES PUTTING INFORMATION ON AN OVERHEAD PROJECTOR AND TELLING PEOPLE THEY NEED TO BECOME BETTER TEAMS JUST DON'T WORK SAYS DR GASS OF THE UNIVERSITY OF NEW HAMPSHIRE BUT WITH THE PROLIFERATION OF NOVEL PROGRAMS HE SAYS CORPORATIONS HAVE A DIFFICULT TIME TELLING WHAT IS VALID AND EFFECTIVE AND WHAT'S GOING TO BE A WASTE OF DOLLARS CORPORATIONS NEED TO CAREFULLY EXAMINE WHETHER PARTICIPANTS WILL GET SOMETHING OF VALUE OR JUST GET A TAN DR PERRY SAYS HE HAS NO TROUBLE ATTRACTING 12 TO 18 PEOPLE TO FILL HIS CADILLACPRICED LEADERSHIP/GOLF COURSE THREE OR FOUR TIMES A YEAR INTEREST IS ALSO STRONG IN HIS 1700 EXECUTIVE SAILING COURSE ON THE SAN FRANCISCO BAY BUT HE CONCEDES HE HAD TO DO BACK FLIPS TO GET THE FIRST ONE FILLED WHEN HE STARTED THE COURSE IN 1990 UNFORTUNATELY PEOPLE ASSOCIATE VALUE WITH PAIN HE SAYS THE IDEA IF IT'S FUN IT CAN'T BE THAT WORTHWHILE' IS DRILLED THROUGH US THE DOZEN PARTICIPANTS IN THIS SESSION FIND GAIN IN NO PAIN THIS DOESN'T APPEAR TO BE PERCEIVED AS A BOONDOGGLE SAYS DON CHRISTENSEN A HUMAN RESOURCES MANAGER FOR INTERNATIONAL RECTIFIER CORP WHICH HAS SENT SEVERAL PEOPLE THROUGH THIS TRAINING A LOT OF COURSES TEND TO BE TOO THEORETICAL HE SAYS HERE YOU LEARN TO APPLY PRINCIPLES LIKE NOT WORRYING ABOUT THINGS HE NOTES THAT ON HIS FIRST DAY GOLFING HE LOST THREE BALLS BUT DIDN'T GET UPSET NORMALLY I PROBABLY WOULD HAVE TOSSED THE CLUB IN THE WATER PARTICIPANTS SPEND FOUR HOURS EACH MORNING IN CLASS LEARNING ABOUT POSITIVE THINKING FOR OPTIMAL PERFORMANCE DR PERRY SAYS PEOPLE MUST ENJOY WHAT THEY'RE DOING IS ENJOYMENT A CHOICE HE ASKS YES IT IS I'M GOING TO SHOW YOU HOW TO ASSUME THE POSITION OF ENJOYMENT HE TELLS THEM TO VISUALIZE THEMSELVES FINDING SUCCESS WHETHER ON THE LINKS OR IN THE OFFICE TO LEARN TO CAPITALIZE ON THEIR STRENGTHS PARTICIPANTS ARE TOLD WHEN THEY HIT A GOOD BALL THEY MUST HOLLER YES TO RECOVER FROM A LOUSY SHOT THEY ARE TO ASK WHAT DID I NOTICE ABOUT THAT AND WHAT CAN I LEARN FROM IT THESE PRACTICES SHOULD GO BACK TO WORK WITH THEM DR PERRY ALSO WARNS CLIENTS TO IGNORE THEIR CRITICAL ADVISER THE NEGATIVE INNER VOICE THAT CAUTIONS PEOPLE AGAINST DOING ANYTHING THAT MIGHT MAKE THEM LOOK SILLY THE CLASS ENDS WITH A HYPNOSIS SESSION LIGHTS ARE DIMMED EYES ARE CLOSED DR PERRY TELLS THE GROUP TO VISUALIZE THE CRITICAL ADVISER AS AN UGLY HAIRY CARTOON CHARACTER AND THEN TO GET OUT A MINIATURIZATION GUN TO MAKE HIM SMALLER OUT ON THE GOLF COURSE STUDENTS TRY TO PUT THESE NEW CONCEPTS INTO ACTION DR PERRY RIDES AROUND THE COURSE LAUGHING CLAPPING LOUDLY AND SHOUTING ENCOURAGEMENT AMAZING ARE WE ALLOWING BEGINNERS TO HIT THAT WELL HE ASKS ONE PLAYER IT FEELS GOOD TO FEEL GOOD DOESN'T IT HE SAYS TO ANOTHER CONFIDENTIALLY HE PROVIDES AD HOC ANALYSIS OF CERTAIN STUDENTS AFTER ONE TAKES A LESSTHANSPECTACULAR SWING HE SAYS HE'S A TREMENDOUS ACHIEVER BUT HE'S PACKED TOO TIGHT WATCHING ANOTHER FRUSTRATED DUFFER HE SAYS HIS NEED TO APPEAR THAT EVERYTHING IS HUNKYDORY IS GREATER THAN HIS NEED TO LEARN THE GROUP INCLUDES BOTH SEASONED GOLFERS AND NOVICES JANICE GOODMAN THE LONE WOMAN IN THE GROUP SAYS HER ONLY PREVIOUS EXPERIENCE WITH THE GAME IS MINIATURE GOLF BUT ALL ARE DETERMINED ONE PARTICIPANT SPRAINS HIS ANKLE ON THE FIRST HOLE BUT PLAYS THROUGH THE IMPORTANT THING BOTH DR PERRY AND THE STUDENTS AGREE IS THAT SKILLS LEARNED HERE BE TRANSPORTED BACK TO WORK DON BESSLER EXECUTIVE DIRECTOR OF FABRICATION OPERATIONS FOR INTERNATIONAL RECTIFIER SAYS HE CAN USE THE ABILITY TO VISUALIZE A GOLF BALL FOR THE VISUALIZATION OF BUSINESS SUCCESS JOEL FRIEDMAN OF ANDERSEN CONSULTING WHO DESCRIBES HIMSELF AS AN EMINENTLY MEDIOCRE GOLFER SAYS CONCENTRATING ON THE RECOVERY PROCESS IS IMPORTANT IN LEARNING HOW TO DEAL WITH SETBACKS THE GOLF COURSE DR PERRY SAYS IS SIMPLY A LAB TO TEST PRINCIPLES NOT TO TEACH GOLF THIS IS TO TEACH PEOPLE HOW TO RELAX AND ENJOY THEMSELVES YOU CAN TRANSFER THESE SKILLS TO WORK PARENTING EVEN SEX THE SAME PRINCIPLES APPLY FOR SEX WHEN I WAS DOING FAMILY COUNSELING I SAW ALL THE SAME PERFORMANCE ANXIETIES THOUGH HE ENJOYED PRIVATE PRACTICE HE HAS FOUND HIS CALLING WITH CORPORATE TRAINING I'M REALLY FOCUSED ON MY MISSION DR PERRY SAYS I'M OBSESSED WITH MAKING A DIFFERENCE USING MY GIFTS AND SKILLS IT'S MY RESPONSIBILITY TO MAKE A SERIOUS CONTRIBUTION TO IMPROVING THE QUALITY OF LIFE AT THE TEE OF THE TERRACED 13TH HOLE WITH A PANORAMIC VIEW OF ROLLING HILLS AND POOLS OF WATER FRANK GRESIK DEMONSTRATES THE PRACTICAL APPLICATION OF DR PERRY'S TRAINING DR PERRY ENCOURAGES HIM JUST LET THE CLUB DO THE WORK DON'T KILL IT SEE IT IN YOUR MIND MR GRESIK TAKES A DEEP BREATH SWINGS AND HITS A LONG STRAIGHT SHOT HIS COLLEAGUES BURST INTO APPLAUSE CHEERS AND LOUD CRIES OF YES THANKS GUYS REPLIES THE BEAMING MR GRESIK I SHUT THE LITTLE BASTARD UP OFF THE COURSE MR GRESIK A MANAGEMENT CONSULTANT BASED IN SOUTHERN CALIFORNIA SAYS THE CLASS HAS TAUGHT HIM TO CONCENTRATE ON RELAXING AND TO STOP CRITICIZING MYSELF AND TAKING THINGS TOO SERIOUSLY THE COMBINATION OF GOLF AND CLASSROOM MADE THE LESSONS MORE MEMORABLE HE SAYS IF YOU TAKE AWAY TWO OR THREE THINGS THAT IMPACT YOUR WORK IT'S BEEN A SUCCESS THERE MAY EVEN BE AN ADDED BONUS HE THINKS THE SKILLS LEARNED HERE CAN ALSO IMPROVE HIS SURFING MS DOLAN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9309100199 930910 EXECUTIVE EDUCATION A SPECIAL REPORT SURVEY HOW THE SURVEY WAS CONDUCTED THE WALL STREET JOURNAL AND BRICKER'S INTERNATIONAL DIRECTORY BEGAN DEVELOPING THIS SURVEY IN JANUARY 1993 IN FEBRUARY A PRELIMINARY SURVEY WAS MAILED TO MANAGERS OF EXECUTIVE EDUCATION AT 1100 LARGE COMPANIES SOLICITING INFORMATION ABOUT CRITERIA THEY USE TO SELECT EXECUTIVE COURSES AND TO MEASURE THE PAYBACK ON THEIR INVESTMENT RESPONDENTS WERE ALSO ASKED TO SELECT THE TOP UNIVERSITYBASED PUBLICENROLLMENT EXECUTIVE PROGRAMS IN EACH OF SEVERAL TOPIC CATEGORIES AND TO NAME INDIVIDUAL CONSULTANTS AND NONUNIVERSITY INSTITUTIONS THAT THEIR COMPANIES HAD ENLISTED FOR EXECUTIVE TRAINING IN THE PREVIOUS TWO YEARS BASED ON RESPONSES TO THE FEBRUARY MAILING A SECOND MORE REFINED SURVEY WAS SENT IN JUNE TO EXECUTIVEEDUCATION MANAGERS AT 650 LARGE COMPANIES THE MAILING LIST INCLUDED THE FIVE LARGEST CORPORATE CLIENTS IDENTIFIED BY EACH OF SOME 40 BUSINESS SCHOOLS THAT HAD RESPONDED TO A SEPARATE DATACOLLECTION SURVEY THE FINAL CORPORATE SURVEY LISTED A TOTAL OF 68 PROGRAMS IN FIVE CATEGORIES GENERAL MANAGEMENT LEADERSHIP AND BUSINESS STRATEGY HUMAN RESOURCES AND ORGANIZATION MARKETING AND SALES AND GLOBAL STRATEGIES RESPONDENTS WERE ASKED TO RESPOND ONLY ON THOSE COURSES WITH WHICH THEY HAD HAD DIRECT EXPERIENCE WITHIN THE PAST TWO YEARS PREFERABLY THOSE FOR WHICH THEY HAD WRITTEN EVALUATIONS FROM PARTICIPANTS PHONE CALLS PRECEDED AND FOLLOWED THE MAILING TO ALERT RECIPIENTS TO THE SURVEY AND TO URGE REPLY AS OF AUG 16 93 COMPANIES HAD RESPONDED BY MAIL FAX OR PHONE OFFERING A TOTAL OF 487 EVALUATIONS REGARDING 61 OF THE LISTED PROGRAMS PROGRAMS THAT DIDN'T GENERATE AT LEAST FIVE RESPONSES EACH WERE ELIMINATED FROM THE FINDINGS TWO FULL PROGRAM CATEGORIES MARKETING AND SALES AND GLOBAL STRATEGIES AND HALF OF THE LEADERSHIP AND BUSINESSSTRATEGY CATEGORY WERE ALSO ELIMINATED FROM THE FINDINGS BECAUSE THE COURSES INVOLVED DIDN'T REPRESENT AN ADEQUATE POOL THE FINDINGS PRESENTED HERE REFLECT A TOTAL OF 358 INDIVIDUAL CORPORATE RESPONSES COVERING A TOTAL OF 31 PROGRAMS THE RATINGS REPRESENT THE AVERAGE OF ALL RESPONSES FOR EACH QUESTION FOR EACH PARTICULAR COURSE INDIVIDUAL PROGRAM RESPONSE RATES RANGED FROM FIVE COMPANIES TO 34 THOUGH MORE HEAVILY REPRESENTED COURSES DIDN'T GENERATE AVERAGE RATINGS SIGNIFICANTLY HIGHER OR LOWER THAN COURSES THAT WERE LESS WELL REPRESENTED SEE RELATED ARTICLE REPORT CARD ACCORDING TO THE WSJ / BRICKER'S SURVEY THE BESTKNOWN COURSES AREN'T NECESSARILY THE BEST COURSES WSJ SEPT 10 1993 9309100198 930910 CANADIAN HOUSING STARTS DROP OTTAWA CANADIAN HOUSING STARTS FELL 52 IN AUGUST FROM JULY TO A SEASONALLY ADJUSTED ANNUAL RATE OF 153300 UNITS CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID THE CORPORATION SAID STRONGER HOME CONSTRUCTION ACTIVITY IS EXPECTED IN THE COMING MONTHS 9309100197 930910 INTERNATIONAL NESTLE PROFIT ROSE BY 6 IN 1ST HALF TO 879 MILLION SPECIAL TO THE WALL STREET JOURNAL ZURICH NESTLE SA THE WORLD'S LARGEST FOOD GROUP SAID ITS CONSOLIDATED PROFIT IN THE FIRST HALF ROSE 6 FROM THE SAME PERIOD A YEAR AGO THE SWISS COMPANY ALSO SAID THAT IT EXPECTS TO SEE A SATISFACTORY RISE IN PROFIT FOR ALL OF 1993 AND THAT SALES GROWTH IN THE SECOND HALF SHOULD EXCEED THE 44 GROWTH RATE SEEN IN THE FIRST HALF NESTLE SAID THAT CONSIDERING THE SEVERITY OF THE RECESSION IN EUROPE THE RESULTS WERE SATISFACTORY THE COMPANY ATTRIBUTED ITS IMPROVEMENT IN EARNINGS TO ITS PORTFOLIO OF STRONG BRAND NAMES ITS GEOGRAPHICAL DIVERSIFICATION AND ITS ONGOING EFFORTS TO STREAMLINE OPERATIONS NET INCOME TOTALED 1246 BILLION SWISS FRANCS 879 MILLION COMPARED WITH 1175 BILLION FRANCS A YEAR EARLIER SALES ROSE TO 27446 BILLION FRANCS FROM 26291 BILLION FRANCS SALES WERE DOWN IN EUROPE UP SLIGHTLY IN NORTH AMERICA AND UP SHARPLY IN THE FAR EAST AND LATIN AMERICA NESTLE'S FIRSTHALF EARNINGS WERE AT THE UPPER END OF EXPECTATIONS AMONG SWISS ANALYSTS HEINZ BOSSERT AN ANALYST AT RUED BLASS & CO IN ZURICH SAID HE EXPECTS THE COMPANY'S FULLYEAR NET PROFIT FOR 1993 TO BE UP 12 TO 302 BILLION FRANCS FROM 27 BILLION FRANCS IN 1992 BOOSTED BY MORE FAVORABLE EXCHANGERATE CONDITIONS FIRSTHALF PERSHARE PROFIT INCREASED TO 337 FRANCS FROM 319 FRANCS IN THE SAME PERIOD A YEAR AGO THE COMPANY SAID CASH FLOW PER SHARE ROSE TO 621 FRANCS FROM 61 FRANCS NESTLE SAID THE EFFECT OF EXCHANGE RATES WHICH WAS NEGATIVE DURING THE FIRST PART OF THE YEAR SHOULD BE NEUTRAL IF NOT POSITIVE DURING THE SECOND HALF SINCE THE COMPARISON PERIOD WILL BE THE LATTER HALF OF 1992 WHEN THE SHARP DECLINE OF THE DOLLAR DURING THE SUMMER AND THE AUTUMN AS WELL AS THE DEVALUATION OF SEVERAL EUROPEAN CURRENCIES HAD A HEAVY IMPACT 9309100196 930910 ECONOMY MARKETING RULES FOR LIFE INSURERS ARE UNDER STUDY TASK FORCE FAULTS INDUSTRY FOR MISLEADING PUBLIC ON POLICY PERFORMANCE BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL INSURANCE REGULATORS MAY SOON CONSIDER NATIONAL MARKETING STANDARDS FOR LIFE INSURERS BECAUSE OF CONCERN THAT THE PUBLIC IS BEING MISLED WITH INCONSISTENT AND OFTEN INACCURATE ESTIMATES ABOUT THE PERFORMANCE OF POLICIES IN A POSITION PAPER A TASK FORCE FOR THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS THE UMBRELLA GROUP FOR STATE REGULATORS SAYS THE ORGANIZATION SHOULD DEVELOP A FORMAT FOR ALL INSURANCE COMPANIES TO FOLLOW IN MARKETING POLICIES TO THE PUBLIC THE GROUP PLANS TO DISCUSS THE TASK FORCE REPORT IN A MEETING LATER THIS MONTH INSURANCE INDUSTRY EXECUTIVES ALSO WILL PARTICIPATE ANY DECISION BY THE NAIC IS STILL MONTHS AWAY BUT IF ADOPTED THE STANDARDS COULD BE IMPLEMENTED BY THE INSURANCE COMMISSIONERS IN THEIR INDIVIDUAL STATES THE NAIC HAS BEEN TAKING A MUCH TOUGHER STANCE TOWARD THE INDUSTRY IN THE PAST FEW YEARS BECAUSE OF FINANCIAL PROBLEMS AT MANY INSURERS WHICH HEIGHTENED CALLS FOR FEDERAL REGULATION FOR INSTANCE THE GROUP RECENTLY DEVELOPED UNIFORM RISKBASED CAPITAL GUIDELINES FOR LIFE INSURERS AND IS WORKING ON SIMILAR STANDARDS FOR PROPERTYCASUALTY INSURERS STILL THERE IS GOING TO BE TREMENDOUS OPPOSITION TO THIS SAID JOSEPH BELTH PROFESSOR EMERITUS OF INSURANCE AT INDIANA UNIVERSITY INSURERS ARE A VERY POWERFUL POLITICAL GROUP AND HAVE HAD A GREAT DEAL OF RESOURCES THEY CAN BRING IN MAKING THEIR ARGUMENTS MR BELTH ADDED THAT MANY OF THE PROBLEMS HAVE BEEN IDENTIFIED BEFORE IN ITS HIGHLY CRITICAL REPORT THE NAIC TASK FORCE INDENTIFIES NINE PROBLEMS WITH THE CURRENT MARKETING PRACTICES OF LIFE INSURERS AMONG THEM ARE WHAT THE TASK FORCE CALLED INAPPROPRIATE USE OF ILLUSTRATIONS TO ESTIMATE FUTURE PERFORMANCE AND TO COMPARE PEFORMANCE OF DIFFERENT POLICIES LACK OF ACCOUNTABILITY OF ANY OF THE PARTIES TO THE SALE LACK OF STANDARDS AND INCONSISTENT DEFINITIONS LANGUAGE ASSUMPTIONS AND METHODOLOGY AND CUSTOMERS NOT BEING NOTIFIED OF CHANGES IN CURRENT ASSUMPTIONS THE TASK FORCE LED BY IOWA INSURANCE COMMISSIONER DAVID LYONS WAS FORMED LAST YEAR TO CONSIDER PROBLEMS RAISED IN CONGRESSIONAL HEARINGS BY SEN HOWARD METZENBAUM DOHIO THIS CONFIRMS OUR COMPLAINTS SEN METZENBAUM SAID IN AN INTERVIEW SALES PITCHES TO CONSUMERS HE SAID OFTEN ARE BASED ON MISLEADING ASSUMPTIONS ABOUT THE VALUE OF THE POLICIES IN FUTURE YEARS AND CONSUMERS MIGHT NOT BE GIVEN ENOUGH INFORMATION TO KNOW THAT THEIR POLICIES CAN BE CANCELED BEFORE THEY DIE IT TOOK A LOT OF GUTS FOR MR LYONS TO WRITE SUCH A STRONG REPORT SEN METZENBAUM ADDED MINUTES OF THE TASK FORCE'S AUG 19 MEETING SHOW HOW STRONGLY THE MEMBERS ALL STATE INSURANCE COMMISSIONERS FELT ABOUT THE ISSUE THE WORKING GROUP DECIDED THAT CURRENT PRACTICES IN THE AREA OF SALES ILLUSTRATIONS ARE INAPPROPRIATE AND UNACCEPTABLE ONE PASSAGE READS IN THE SUBSEQUENT REPORT THE TASK FORCE SAYS THAT ILLUSTRATIONS USED IN SALES PRESENTATIONS MAY USE PRECISE NUMBERS THAT GIVE THE IMPRESSION THAT IT IS AN ACCURATE PROJECTION OF FUTURE PERFORMANCE BUT THE REPORT ADDED EVEN IF THE ASSUMPTIONS USED ARE EXACTLY THE SAME AS CURRENT EXPERIENCE IT WON'T BE ACCURATE BECAUSE FUTURE EXPERIENCE WON'T BE IDENTICAL TO CURRENT PERFORMANCE THE REPORT ALSO SAID THERE IS OFTEN A LACK OF SUPPORTABILITY OF THE ASSUMPTIONS USED THE TASK FORCE SAID THE NAIC SHOULD CONSIDER FOUR POSSIBLE REMEDIES INCLUDING USING STANDARD ASUMPTIONS OR REQUIRING THAT INSURERS LIKE MUTUAL FUNDS CITE ONLY PAST PERFORMANCE NOT FUTURE PROJECTIONS EVEN IF THE NAIC ADOPTS UNIFORM RULES ALONG THE LINES SUGGESTED SEN METZENBAUM SAID HIS SENATE SUBCOMMITTEE PROBABLY WOULD CONSIDER FEDERAL LEGISLATION BECAUSE SOME STATES MAY DRAG THEIR FEET ON IMPLEMENTING THE STANDARDS I JUST HOPE THE INSURANCE COMMISSIONERS WHO HAVE NOT ALWAYS WON AWARDS FOR PROFILES IN COURAGE WILL STAND UP AND NOT TRY TO WHITTLE THIS REPORT DOWN SEN METZENBAUM SAID ANY ATTEMPT TO IMPOSE FEDERAL REGULATION IS LIKELY TO BE RESISTED BY THE INSURANCE INDUSTRY 9309100195 930910 ENTERPRISE FOCUS ON FRANCHISING FINANCIAL CLAIM REQUIREMENT CONSIDERED BY REGULATORS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL REGULATORS WEIGH REQUIRING FRANCHISERS TO MAKE EARNINGS CLAIMS THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION IS CONSIDERING WHETHER FRANCHISERS SHOULD HAVE TO MAKE FORMAL CLAIMS ABOUT FRANCHISEES' SALES AND EARNINGS THE GROUP'S RECOMMENDATIONS OFTEN PROMPT STATES TO ADOPT FRANCHISING AND SECURITIES REGULATIONS AN ASSOCIATION COMMITTEE EXPECTS TO COMPLETE ITS REVIEW OF THE ISSUE WITHIN A YEAR SAYS JOSEPH J BJERKE COMMITTEE CHAIRMAN AND SOUTH DAKOTA'S FRANCHISE ADMINISTRATOR THE ASSOCIATION WANTS TO INCREASE PROTECTION FOR PROSPECTIVE FRANCHISEES MR BJERKE ADDS EVEN GROSS SALES IS MORE THAN MANY PEOPLE ARE GETTING RIGHT NOW WHICH IS NOTHING THE FEDERAL TRADE COMMISSION REQUIRES A REASONABLE BASIS FOR VOLUNTARY CLAIMS BY FRANCHISERS ABOUT FRANCHISEE FINANCIAL RESULTS BUT NEITHER THE FTC NOR ANY STATE MANDATES SUCH CLAIMS A BILL PROPOSED BY REP JOHN J LAFALCE D NY WOULD REQUIRE THE CLAIMS BUT IT IS UNCLEAR WHETHER THE MEASURE WILL PASS ONLY ABOUT 18 OF 366 FRANCHISERS SURVEYED MADE FORMAL EARNINGS CLAIMS IN 1991 ACCORDING TO A REPORT RELEASED LAST YEAR FOR THE INTERNATIONAL FRANCHISE ASSOCIATION BUT NEARLY A THIRD WERE EXPECTED TO MAKE SUCH CLAIMS IN 1992 THE SURVEY PROJECTED THE FTC IS EXPECTED TO ENDORSE OTHER FRANCHISEDISCLOSURE CHANGES APPROVED BY THE STATE REGULATORS GROUP IN APRIL THOSE CHANGES SEEK TO GIVE POTENTIAL FRANCHISEES MORE DETAILS ABOUT EXPECTED COSTS BRUTAL HONESTY TACO BELL SPELLS OUT FRANCHISEES' ENCROACHMENT RISKS THE PEPSICO INC UNIT ALTERS ITS FRANCHISEOFFERING CIRCULARS TO TACKLE A SENSITIVE ISSUE NEW FRANCHISES' POSSIBLE ENCROACHMENT ON EXISTING ONES THE FASTFOOD FRANCHISER SAYS IT DOESN'T GRANT EXCLUSIVE TERRITORIES TO FRANCHISEES BUT THE CIRCULAR'S REVISED WORDING SPECIFIES MORE ABOUT POTENTIAL DANGERS IT SAYS TACO BELL AND OTHER PEPSICO CHAINS MAY ESTABLISH NEW FACILITIES THAT REDUCE THE SALES OR PROFIT OF EXISTING TACO BELLS TACO BELL SAYS IT HASN'T CHANGED POLICY BECAUSE ITS CONTRACTS WITH FRANCHISEES HAVE LONG USED THE SAME LANGUAGE THIS IS FURTHER CLARIFICATION OF A POINT THAT'S BEEN MADE BEFORE SAYS A SPOKESMAN FOR TACO BELL BASED IN IRVINE CALIF BUT THE ALTERED CIRCULARS DO THROW A SPOTLIGHT ON TENSIONS INSIDE PEPSICO'S FRANCHISING CHAINS WHICH INCLUDE PIZZA HUT KENTUCKY FRIED CHICKEN AND OTHERS SOME FRANCHISEES COMPLAIN THAT NEWER OUTLETS WHICH INCREASINGLY INCLUDE KIOSKS AND CARTS ALONG WITH TRADITIONAL RESTAURANTS CANNIBALIZE SALES OF OLDER UNITS ONE TACO BELL FRANCHISEE RECENTLY GRIPED ABOUT PEPSICO'S LATEST ENCROACHMENT WORDING IN A LETTER TO REP LAFALCE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE TACO BELL SAYS ONLY ABOUT 1 OF ITS 1400 FRANCHISED RESTAURANTS WERE AFFECTED BY ENCROACHMENT LAST YEAR AND OFTEN THEIR SALES QUICKLY REBOUNDED THE TERMINATOR THIS TIME IS A COKE BOTTLER DISTRIBUTORS SAY COCACOLA BOTTLING CO OF NEW YORK SAYS IT DOESN'T INTEND TO RENEW AGREEMENTS WITH ABOUT 325 DISTRIBUTORS WHEN THEY EXPIRE IN 1995 THE GREENWICH CONN BOTTLER 53 OWNED BY COCACOLA CO SAYS IT AIMS TO GAIN FLEXIBILITY AND EFFICIENCY BY TRANSFORMING THE DISTRIBUTORS INTO EMPLOYEES EACH DISTRIBUTOR NOW CONTROLS A TRUCKDELIVERY ROUTE IN A LETTER IN MAY COKE NEW YORK OFFERED TO PAY THE DISTRIBUTORS A TOTAL OF 100 MILLION FOR YOUR ASSISTANCE IN TRANSITIONING TO THE NEW SYSTEM AND TO RESOLVE ANY DISPUTES BETWEEN US THE LETTER TRIGGERED A SERIES OF MEETINGS BETWEEN THE BOTTLER AND DISTRAUGHT DISTRIBUTORS THE NEW YORK COCACOLA DISTRIBUTORS ASSOCIATION SAYS MEMBERS ARE BEING ASKED TO EXCHANGE LUCRATIVE BUSINESSES FOR LOWWAGE JOBS JAMES L GREEN AN ASSOCIATION ATTORNEY SAYS THE DISTRIBUTORS VALUE THEIR BUSINESSES AT MORE THAN 180 MILLION AFTER FAILING TO PERSUADE THE COMPANY TO RENEW THE CONTRACTS THE ASSOCIATION SAYS IT WILL ATTEMPT TO WIN LARGER COMPENSATION FOR THE PLANNED TRANSITION THE GROUP FACES A COMMON FRANCHISING PITFALL FRANCHISEES SUDDENLY CAN BE LEFT WITH NO BUSINESS WHEN CONTRACTS EXPIRE COKE NEW YORK CONFIRMS PLANS FOR FURTHER TALKS OBVIOUSLY THERE ARE SOME THINGS THAT NEED TO BE WORKED OUT A SPOKESMAN SAYS A FLORIDA ENTREPRENEUR SEEKS TO BRING US FASTFOOD CHAINS TO POLAND IN JUNE CAPITAL ACQUISITIONS INC MIAMI BEACH ACQUIRED EXCLUSIVE RIGHTS FROM DOMINO'S PIZZA INTERNATIONAL INC TO FRANCHISE DOMINO'S PIZZA STORES IN THE POLISH MARKET CAPITAL THEN FORMED A NEW SUBSIDIARY INTERNATIONAL PIZZA CORP TO DEVELOP AT LEAST 50 DOMINO'S OUTLETS IN POLAND DURING THE NEXT DECADE CAPITAL HAD OBTAINED THE POLISH RIGHTS TO DEVELOP BURGER KING RESTAURANTS FRANCHISED BY A UNIT OF GRAND METROPOLITAN PLC INTERNATIONAL FAST FOOD CORP A MAJORITYOWNED UNIT OF CAPITAL OPENED ITS FOURTH BURGER KING UNIT IN WARSAW IN JULY NEARLY SIX MONTHS AHEAD OF PLAN INTERNATIONAL FAST FOOD SAYS IT HAS AGREED TO OPEN AT LEAST 13 BURGER KINGS IN POLAND BY SEPTEMBER 1996 A TASK IT EXPECTS TO COMPLETE TWO YEARS AHEAD OF SCHEDULE ENTREPRENEUR MITCHELL RUBINSON WHO CONTROLS CAPITAL DECLINES TO DISCUSS HIS EXPANSION PLANS CITING THE QUIET PERIOD FOR A SECURITIES OFFERING BY INTERNATIONAL PIZZA CAPITAL AND INTERNATIONAL FAST FOOD HAVE RAISED MORE THAN 19 MILLION FROM PUBLIC FINANCINGS SINCE 1991 THE NEW PIZZA UNIT AIMS TO SELL AT LEAST 76 MILLION IN STOCK ACCORDING TO A PRELIMINARY PROSPECTUS ANALYSTS SAY OTHER US RESTAURANT COMPANIES INCLUDING MCDONALD'S CORP AND FRANCHISING CHAINS OWNED BY PEPSICO AIM TO TAKE OVER MUCH OF THE POLISH MARKET SERVED BY STREET KIOSKS AND LOCAL RESTAURANTS BRIEFS THE INTERNATIONAL FRANCHISE ASSOCIATION SIGNS UP ITS FIRST MEMBER FROM THE FORMER SOVIET UNION A RUSSIAN PIZZA FRANCHISER KNOWN AS DOKA THE CONGRESSIONAL BLACK CAUCUS WILL HONE IN ON THE POSITION OF BLACKS IN THE FRANCHISING INDUSTRY IN A PANEL DISCUSSION AT THE WASHINGTON CONVENTION CENTER ON THURSDAY 9309100194 930910 WHO'S NEWS PETER J SOLOMON CO PETER J SOLOMON CO FRANCIS T FAY VINCENT THE COMMISSIONER OF MAJOR LEAGUE BASEBALL FROM 1989 TO 1992 JOINED THE INVESTMENT BANKING COMPANY AS A SENIOR ADVISER PARTICULARLY ON TRENDS IN SPORTS ENTERTAINMENT AND MEDIA PUBLISHING MR VINCENT IS A FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COLUMBIA PICTURES AND FORMER CHAIRMAN AND CEO OF COCACOLA CO'S ENTERTAINMENT BUSINESS SECTOR 9309100193 930910 TECHNOLOGY SCICLONE GETS DRUG APPROVAL SAN MATEO CALIF SCICLONE PHARMACEUTICALS INC SAID IT RECEIVED GOVERNMENT APPROVAL TO MARKET THE DRUG ZADAXIN THYMOSIN ALPHA 1 IN SINGAPORE THE DRUG WHICH IS USED TO TREAT CHRONIC HEPATITIS B IS CURRENTLY IN CLINICAL TRIALS FOR USE IN THE US 9309100192 930910 CANADA PLANS TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 180 BILLION CANADIAN DOLLARS US137 BILLION OF 75 BONDS DUE DEC 1 2003 THE NEW BONDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9309100191 930910 WHO'S NEWS PRIMERICA CORP PRIMERICA CORP NEW YORK THOMAS J BURNS WAS NAMED CHIEF FINANCIAL OFFICER AT THE SMITH BARNEY SHEARSON INC BROKERAGE UNIT OF THIS FINANCIAL SERVICES CONCERN MR BURNS 43 YEARS OLD WILL REPORT TO ROBERT DRUSKIN 46 VICE CHAIRMAN AND CHIEF ADMINISTRATIVE OFFICER MR BURNS HAD BEEN CONTROLLER AT SHEARSON LEHMAN BROTHERS INC AND SHEARSON LEHMAN BROTHERS HOLDINGS BOTH FORMERLY UNITS OF AMERICAN EXPRESS CO 9309100190 930910 WHO'S NEWS BOOKSAMILLION INC BOOKSAMILLION INC BIRMINGHAM ALA SANDRA B COCHRAN FORMERLY VICE PRESIDENT FINANCE OF THIS BOOK RETAILER WAS PROMOTED TO VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SHE SUCCEEDS GERALD H DAUGHERTY WHO WILL CONTINUE AS EXECUTIVE VICE PRESIDENT AND AS A DIRECTOR 9309100189 930910 INTERNATIONAL CRIMES AGAINST FOREIGNERS ARE ADDING TO BURDEN OF DOING BUSINESS IN RUSSIA BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AN AMERICAN BUSINESSMAN LET'S CALL HIM TOM FOUND HIMSELF FACE TO FACE WITH RUSSIA'S MAFIA AT A MOSCOW HOTEL SEVERAL WEEKS AGO THE MOB DEMANDED A SLICE OF TOM'S EXPANDING COMMUNICATIONS OPERATIONS IN THE RUSSIAN CAPITAL THEY MADE HIM A DEAL THEY THOUGHT HE COULDN'T REFUSE HAND OVER A TENTH OF THE VENTURE'S REVENUE PAYABLE TO A NUMBERED BANK ACCOUNT OVERSEAS OR LOSE THE BUSINESS TO BACK UP THE THREAT THE GANG LEADER BROUGHT TWO OVERSIZED GOONS TO THE NEGOTIATIONS SHAKEN THE NATIVE NEW YORKER CONTACTED THE US EMBASSY IN MOSCOW THE FEDERAL BUREAU OF INVESTIGATION IN WASHINGTON AND THE MOSCOW POLICE ORGANIZEDCRIME SQUAD HE TOYED WITH A POLICE SUGGESTION TO WIRE HIMSELF TO TAPE SUBSEQUENT TALKS WITH THE MOBSTERS BUT FEARING FOR HIS OWN SAFETY AND THAT OF HIS RUSSIAN PARTNERS NOT TO MENTION HIS 2 MILLION INVESTMENT HE AGREED TO PAY CONTINUING FEARS PREVENT TOM FROM DISCLOSING HIS FULL NAME OR THE COMPANY HE REPRESENTS WE ALWAYS TRIED TO KEEP OUR HEADS DOWN TO AVOID ATTRACTING THE INTERESTS OF RUSSIA'S CRIMINALS SAYS THE BUSINESSMAN BUT MOSCOW IS GETTING TO BE A MORE BRUTAL PLACE EVERY MONTH THIS SUMMER HAS SEEN A SERIES OF HARROWING AND WELLPUBLICIZED CRIMES AGAINST RUSSIA'S FOREIGN BUSINESS COMMUNITY THE LOCAL PARTNER OF A USRUSSIAN JOINTVENTURE RESTAURANT WAS MURDERED IN AN APPARENT CONTRACT KILLING A BRITISH BUSINESSMAN WAS FOUND STABBED TO DEATH IN HIS LUXURY HOTEL ROOM AN AMERICAN TRADER WAS KIDNAPPED AND HELD FOR RANSOM FOR 10 DAYS BEFORE ESCAPING CRIME HAS BECOME THE TALK OF THE TOWN AMONG WESTERN BUSINESS EXECUTIVES WHO HAVE ORGANIZED MEETINGS TO POOL INFORMATION AND DISCUSS HOW TO RESPOND WHILE SOME CONTEND THAT FEARS OVER SAFETY HAVE BEEN BLOWN OUT OF PROPORTION ALL AGREE THAT PROVIDING SECURITY FOR THEIR VENTURES AND EMPLOYEES HAS ADDED SIGNIFICANT NEW COSTS TO DOING BUSINESS IN RUSSIA ROBBERIES ARE A FACT OF LIFE IN ANY BIG CITY BUT IT'S THE PRESENCE OF ORGANIZED CRIME IN RUSSIA THAT IS MOST UNSETTLING EXTORTION IS A GROWING PROBLEM ESPECIALLY FOR COMPANIES THAT TEND TO DEAL IN CASH THE RUSSIAN PARTNER OF A RUSSIANBRITISH TRADING COMPANY IN MOSCOW SAYS HE MUST PAY THE MOB 2000 A MONTH FOR PROTECTION THE RUSSIAN WHO ALSO DECLINES TO BE NAMED MAKES THE TRANSACTION WITHOUT INVOLVING HIS BRITISH PARTNERS WHO ARE HAPPY TO BE OUT OF THE LOOP THE INTERNATIONAL ACCOUNTING FIRM ERNST & YOUNG TOOK NO CHANCES WHEN A PAIR OF SUSPICIOUS CHARACTERS APPROACHED ITS MOSCOW MANAGERS RECENTLY AS THE TALK VEERED DANGEROUSLY CLOSE TO AN ATTEMPT AT EXTORTION ONE MANAGER SUMMONED THE COMPANY'S TWO ARMED DOORMEN TO QUICKLY ESCORT THE UNWANTED PAIR OUT OF THE OFFICE THEY HAVEN'T RETURNED THIS ISN'T CHICAGO IN THE 20S AT LEAST NOT YET SAYS GEORGE REESE ERNST & YOUNG'S MANAGING PARTNER IN RUSSIA STILL IT'S A BIG CITY AND YOU HAVE TO USE COMMON SENSE TO MANY FOREIGNERS COMMON SENSE MEANS NOT DRAWING ATTENTION TO THEMSELVES BY WEARING ROLEXES MINK COATS OR DRIVING FLASHY CARS IT MEANS AVOIDING NIGHTCLUBS LATE AT NIGHT MR REESE EVEN ADVISES CLIENTS CONSIDERING INVESTMENTS IN RESTAURANTS OR RETAIL STORES WHERE MOST TRANSACTIONS INVOLVE CASH TO SERIOUSLY RECONSIDER DOING BUSINESS IN RUSSIA WHILE THE LEVEL OF CRIMINAL CASES STILL DOESN'T APPROACH THAT OF SAY NEW YORK THERE IS A PERCEPTION THAT MOSCOW HAS BECOME AT LEAST AS DANGEROUS THAT'S PARTLY BECAUSE A FEW YEARS AGO THERE WAS ALMOST NO CRIME OR AT LEAST ALMOST NONE REPORTED AND IN THE PAST FEW CRIMINALS TANGLED WITH FOREIGNERS WHO WERE FREQUENTLY TAILED BY SOVIET INTELLIGENCE RUSSIA'S CRIMINAL ELEMENTS HAVE BECOME FAR MORE AGGRESSIVE SINCE THE IRON HAND OF THE GOVERNMENT WAS LIFTED A FEW YEARS AGO SAYS DALE SLAGHT HEAD OF THE US EMBASSY'S COMMERCIAL SECTION WHO HEARS SCORES OF COMPLAINTS FROM AMERICANS NOW AS THE INTERNATIONAL BUSINESS COMMUNITY EXPANDS HERE FOREIGNERS INCREASINGLY ARE BEING TARGETED BOTH FOR STREET CRIME AND FOR EXTORTION RUSSIA'S INTERIOR MINISTRY SAYS CRIMES AGAINST FOREIGNERS ROSE 70 IN THE PAST YEAR IN MOSCOW ALONE THERE WERE 956 SUCH REPORTS IN THE FIRST SEVEN MONTHS OF 1993 COMPARED WITH 664 IN THE SAME PERIOD IN 1992 MAXWELL ASGARI AN AMERICAN WHO HEADS THE LOCAL UNIT OF THE SWISS INDUSTRIAL ENGINEERING GROUP ASEA BROWN BOVERI LTD IS TAKING NO CHANCES LIKE MANY OTHER FOREIGN COMPANIES HERE ABB NOW PROVIDES ITS LOCAL AND FOREIGN STAFF WITH VARIOUS SECURITY SYSTEMS SUCH AS STEEL DOORS FOR THEIR HOMES AND ALARMS FOR THEIR CARS THE ULTIMATE COST TO PROTECT ABB'S SEVERAL HUNDRED EMPLOYEES IN RUSSIA COULD RUN TO A FEW HUNDRED THOUSAND DOLLARS IT ISN'T SO MUCH THAT THE CURRENT LEVEL OF CRIME IS SO BAD SAYS MR ASGARI BUT IT'S GROWING RAPIDLY AND I DON'T SEE ANY VEHICLE OR RESOURCE THAT THE GOVERNMENT HAS TO PREVENT IT MOST PREVALENT HAS BEEN A RASH OF AUTO THEFTS OFFICIALS SAY AS MANY AS 100 CARS ARE STOLEN IN MOSCOW EACH DAY AND FEW CASES ARE SOLVED THE CHINESE EMBASSY HAS LOST A FLEET OF MERCEDES VEHICLES THAILAND'S DEFENSE ATTACHE HAD HIS LOCKED MERCEDES STOLEN IN BROAD DAYLIGHT DURING THE 10 MINUTES HE PARKED OUTSIDE A MOSCOW STORE THE MOSCOW OFFICE OF THE WALL STREET JOURNAL LOST A BRAND NEW TOYOTA TO THIEVES THE POLICE ORGANIZEDCRIME SQUAD IN MOSCOW HAS HAD RELATIVELY FEW SUCCESSES THOUGH IT HAS BEEN RESPONSIVE TO FOREIGNERS' COMPLAINTS THE SQUAD DID HELP FREE AN AMERICAN THOMAS CHA WHO WAS KIDNAPPED IN MOSCOW IN JUNE AND HELD FOR 10 DAYS HIS ABDUCTORS TRIED TO EXTORT 500000 FROM HIS COMPANY WHICH IMPORTS REINDEER ANTLERS FROM RUSSIA'S FAR EAST POLICE ARRESTED THE GANG AFTER MR CHA FLED HIS CAPTORS IN A MOSCOW POST OFFICE WHILE THE MOSCOW POLICE ACKNOWLEDGE THE INCREASE IN CRIME THE DEPARTMENT'S GRUFF ANTIMOB ENFORCER THINKS THE FOREIGN COMMUNITY IS EXAGGERATING THE PROBLEM FOR THE MOST PART IF YOU ARE LAWABIDING NO ONE WILL HARM YOU SAYS VLADIMIR RUSHAILO LOOK IS MOSCOW ANY WORSE THAN NEW YORK NO WAY SOME AMERICANS IN MOSCOW AGREE MARK PITTS RECENTLY CAME TO OPEN DUN & BRADSTREET CORP'S OFFICE IN MOSCOW HE PLAYS DOWN THE THREAT NOTING THAT CRIME IN MOSCOW HAS NOTHING ON NEW YORK WHERE THE COMPANYS BASED STILL MR PITTS CONCEDES THAT WHEN HIS BOSS A NEW YORKBASED VICE PRESIDENT VISITS MOSCOW LATER THIS YEAR HE WILL PROVIDE HER WITH A FULLTIME BODYGUARD 9309100188 930910 FINANCING BUSINESS FOREST OIL CORP FOREST OIL CORP DENVER SAID IT COMPLETED AN OFFERING OF 100 MILLION 11 1/4 SENIOR SUBORDINATED NOTES DUE SEPT 1 2003 THE NOTES WERE PRICED AT 99259 TO YIELD 11 3/8 THE OFFERING WAS MANAGED BY LEHMAN BROTHERS AND SALOMON BROTHERS INC FOREST WILL USE PROCEEDS AND ABOUT 19 MILLION IN CASH TO REDEEM OR BUY ALL OF ITS 12 3/4 SENIOR SECURED NOTES AND LONGTERM SUBORDINATED DEBENTURES OUTSTANDING 9309100187 930910 MARKETING & MEDIA PULITZER COMPLETES PURCHASE ST LOUIS PULITZER PUBLISHING CO SAID IT COMPLETED THE PURCHASE OF TELEVISION STATION KCCITV A CBS AFFILIATE IN DES MOINES IOWA FROM H&C COMMUNICATIONS INC FOR 222 MILLION THE PURCHASE PRICE INCLUDES NET ACCOUNT RECEIVABLES A PULITZER SPOKESMAN SAID THE PURCHASE WAS FINANCED BY BORROWING 20 MILLION FROM THE CANADIAN IMPERIAL BANK OF COMMERCE UNDER A FIVEYEAR REVOLVING AND TERM CREDIT FACILITY THE REMAINDER WAS PAID IN CASH PAUL FREDERICKSEN WILL CONTINUE AS GENERAL MANAGER OF KCCITV AND WILL BECOME A VICE PRESIDENT OF PULITZER BROADCASTING A UNIT OF PULITZER PUBLISHING 9309100186 930910 RTZ PRETAX PROFIT INCREASED 15 IN 1993 FIRST HALF SPECIAL TO THE WALL STREET JOURNAL LONDON RTZ CORP ONE OF THE WORLD'S LARGEST MINING COMPANIES REPORTED FOR THIS YEAR'S FIRST HALF A 15 RISE IN PRETAX PROFIT TO 339 MILLION 5226 MILLION AS CURRENCY FLUCTUATIONS ADDED ABOUT 50 MILLION TO THE RESULTS PRETAX PROFITS IN THE YEAREARLIER PERIOD TOTALED 295 MILLION SALES ROSE 59 TO 241 BILLION 372 BILLION FROM 228 BILLION THE BRITISH COMPANY SAID LOWER METALS PRICES CUT INTO EARNINGS BY ABOUT 43 MILLION CHAIRMAN DEREK BIRKIN NOTED PRICES AREN'T LIKELY TO REBOUND ANY TIME SOON AS WE HAVE PREVIOUSLY WARNED IT MAY BE SOME TIME BEFORE METAL PRICES SHOW ANY MEANINGFUL IMPROVEMENT FROM THEIR PRESENT DEPRESSED LEVELS HE SAID THE COMPANY PAID ITS INTERIM DIVIDEND OF 135 PENCE 21 CENTS A SHARE EARLIER THIS YEAR WHEN IT DECIDED TO SWITCH ITS TRADITIONALLY BIGGER PAYMENT AT YEAR'S END TO MIDYEAR WITHOUT EXCEPTIONAL ITEMS RTZ'S INTERIM PROFIT TOTALED 186 MILLION UP 18 FROM A YEAR EARLIER THAT RESULT IS IN LINE WITH MARKET FORECASTS THE EARNINGS REDUCTION FROM LOW PRICES WAS NEARLY OFFSET BY A GAIN OF 30 MILLION BEFORE FINANCING COSTS BECAUSE OF RECENT INVESTMENTS IN EXPANSIONS AND ADDITIONS TO CORE MINING BUSINESSES OVERALL VOLUMES ELSEWHERE BARELY CHANGED ALSO THE EXCHANGE RATE GAINS PLAYED A SIGNIFICANT ROLE IN THE BIGGER PROFIT THE GAIN AROSE MAINLY BECAUSE OF STERLING'S DEVALUATION AND A WEAKER AUSTRALIAN DOLLAR THE COMPANY SAID RTZ OPERATES MINES ON SEVERAL CONTINENTS AND THE BIGGEST CHUNK OF ITS REVENUE COMES FROM THE US THE COMPANY'S NET ATTRIBUTABLE PROFIT MORE THAN DOUBLED TO 264 MILLION AT INTERIM FROM 128 MILLION A YEAR EARLIER RTZ USES NET ATTRIBUTABLE EARNINGS WHEN COMPARING THE PERFORMANCE OF ITS OPERATIONS BY GEOGRAPHIC REGIONS AND SECTORS THE FIGURE STRIPS OUT EXCEPTIONAL ITEMS AND COSTS SUCH AS EXPLORATION EXPENSES CORPORATE COSTS AND INTEREST RTZ PILLAR A BUILDING AND ELECTRICAL PRODUCTS COMPANY THAT RTZ RECENTLY AGREED TO SELL WAS LARGELY RESPONSIBLE FOR THE GROWTH IN THE INDUSTRIAL MINERALS DIVISION FOR THE FIRST HALF RTZ PILLAR CONTRIBUTED 14 MILLION TO EARNINGS COMPARED WITH 10 MILLION A YEAR EARLIER RTZ SAID IT WILL REALIZE A GAIN OF ABOUT 900 MILLION ON THE SALE OF RTZ PILLAR 9309100185 930910 MARKETING & MEDIA BUDGET WON'T BE A PROBLEM IF YOU WOULD LIKE A JAGUAR RENTAL CAR COMPANY TO OFFER LUXURY SEDANS AS FORD UNIT ATTEMPTS TO IMPROVE IMAGE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FOR LUXURY CAR BUYERS BUDGET HAS OFTEN BEEN THE WORD THAT HAS KEPT THEM OUT OF A JAGUAR THAT'S ABOUT TO CHANGE BEGINNING NEXT MONTH JAGUAR IS MAKING 500 OF ITS 50000 XJ6 SEDANS AVAILABLE FOR RENT THROUGH BUDGET RENT A CAR INC AS PART OF AN UNPRECEDENTED 25 MILLION FLEET SALE AIMED AT GETTING MORE OF THE BRITISH AUTO MAKER'S CARS INTO THE HANDS OF POTENTIAL AMERICAN BUYERS JAGUAR A UNIT OF FORD MOTOR CO HAS LOST MILLIONS SINCE BEING ACQUIRED BY THE NO 2 AUTO MAKER IN 1989 AND PART OF THE PROBLEM HAS BEEN A REPUTATION FOR BUILDING TROUBLERIDDEN AUTOMOBILES JAGUAR NOW HOPES A 59ADAY DRIVE IN ONE OF ITS CARS WILL WIPE AWAY THAT IMAGE AS PEOPLE RENT THESE VEHICLES WE ARE GOING TO SURVEY THEM ON THEIR EXPERIENCES SAYS A SPOKESMAN FOR THE AUTO MAKER'S US SALES UNIT JAGUAR CARS INC AND WHERE THERE IS AN EXPRESSED INTEREST FOR MORE INFO WE ARE GOING TO FOLLOW UP ON THAT THROUGH OUR DEALERS A CLEVER IDEA SAYS ONE INDUSTRY ANALYST IF JAGUAR CAN PULL IT OFF WITHOUT LOSING ITS UPPERCRUST IMAGE TO THAT END BUDGET IS ONLY OFFERING THE XJ6 SEDANS IN 10 MARKETS AND ONLY BY INVITATION TO PREVIOUS JAGUAR OWNERS AND PREVIOUS RENTERS OF BUDGET LUXURY CARS JAGUAR AND BUDGET PLAN TO SEND OUT THE INVITATIONS IN A DIRECTMAIL CAMPAIGN BEGINNING NEXT MONTH UNTIL NOW BUDGET'S LUXURY CARS HAVE MOSTLY BEEN LINCOLN TOWN CAR AND CONTINENTAL SEDANS AND LINCOLN MARK VIII COUPES ALL FROM FORD WHICH HAS A FINANCIAL STAKE IN THE RENTAL CAR COMPANY A UNIT OF BEECH HOLDINGS CORP LISLE ILL THEN AGAIN SINCE MOST NICHE AUTOS HAVE BEEN FOUNDERING IN THE LUXURY SEGMENT JAGUAR MIGHT BENEFIT FROM A MORE HOMESPUN IMAGE I PERCEIVE THIS AS A STEP TOWARD REBUILDING JAGUAR VOLUMES SAYS SUSAN G JACOBS PRESIDENT OF JACOBS & ASSOCIATES INC A LITTLE FALLS NJ CONSULTING FIRM THEY NEED TO BROADEN THEIR IMAGE TO BE MORE OF A MAINSTREAM MANUFACTURER BUT HOW MAINSTREAM CAN JAGUAR GO THIS YEAR THROUGH AUGUST JAGUAR SOLD 7936 CARS ACCORDING TO WARD'S AUTOMOTIVE NEWS AN INDUSTRY JOURNAL THAT IS A 36 INCREASE OVER DISMAL YEARAGO SALES BUT A FAR CRY FROM SALES OF 18728 AS RECENTLY AS 1990 AND WITH RESALE VALUES PLAYING A CRITICAL ROLE IN THE SALE OF ANY NEW LUXURY CAR JAGUAR IS CAREFUL TO SAY THAT IT ISN'T INTERESTED IN MASSIVE FLEET SALES OF ITS XJ6 SEDANS BUDGET HOWEVER IS CONSIDERABLY MORE ENTHUSIASTIC OUR HOPE IS THAT THIS WILL BE SUCCESSFUL AND WE WILL EXPAND THIS PROGRAM NATIONWIDE SAYS DAVID J SPARKS BUDGET'S SENIOR VICE PRESIDENT FOR WORLDWIDE MARKETING AND SALES 9309100184 930910 WHO'S NEWS PHILADELPHIA STOCK EXCHANGE PHILADELPHIA STOCK EXCHANGE PHILADELPHIA RICHARD B FEINBERG 48 YEARS OLD WAS NAMED VICE CHAIRMAN OF THE STOCK EXCHANGE'S BOARD OF GOVERNORS SUCCEEDING JOHN P DAVOLI A PARTNER AT O'CONNOR & ASSOCIATES WHO STEPPED DOWN BECAUSE OF A RECENT MOVE TO CHICAGO MR DAVOLI 34 WILL REMAIN ON THE BOARD MR FEINBERG WHO WORKS FOR RICHARDTALYN & CO WAS VICE CHAIRMAN FROM 1988 THROUGH 1992 9309100183 930910 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON RICHARD A SNELL WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TENNECO AUTOMOTIVE UNIT OF THIS INDUSTRIAL COMPANY MR SNELL 52 YEARS OLD WAS A GENERAL MANAGER IN THE AUTOMOTIVE UNIT HE SUCCEEDS JOHN P REILLY 50 WHO WAS NAMED PRESIDENT OF BRUNSWICK CORP A LAKE FOREST ILL MARINE POWER BOATING AND RECREATION COMPANY 9309100182 930910 EXECUTIVE EDUCATION A SPECIAL REPORT PAYBACK WHEN THINGS GO WRONG EXECUTIVE EDUCATION IS SOMETIMES JUST A WASTE OF MONEY AND SOMETIMES IT'S A LOT WORSE THAN THAT BY FRANK EDWARD ALLEN TALES FROM THE DARK SIDE OF EXECUTIVE EDUCATION A VICE PRESIDENT OF AN INDUSTRIALEQUIPMENT MAKER SAYS HE WAS SENT TO ONE OF THE COUNTRY'S TOP BUSINESS SCHOOLS IN 1991 FOR MORE THAN A MONTH HIS EMPLOYER PICKED UP THE ENTIRE TAB INCLUDING A HOTEL SUITE A RENTED CADILLAC A 1300 PHONE BILL AND SEVERAL FLIGHTS HOME ON WEEKENDS DURING HIS ABSENCE A FEW PEERS AND SUBORDINATES WERE EXPECTED TO TAKE UP THE SLACK WHEN I RETURNED I WAS RESENTED EVEN BY SOME OF MY MOST LOYAL PEOPLE SAYS THE 48YEAROLD EXECUTIVE MY WIFE LEARNED FROM ANOTHER SPOUSE THAT THEY WERE CALLING ME ANOINTED ONE' I'M STILL DOING DAMAGE CONTROL A FORMER FINANCE OFFICER FOR A MAJOR DRUG COMPANY ASSUMED HE WAS BEING PUT ON THE FAST TRACK WHEN HE WAS CHOSEN TO ATTEND A CUSTOMIZED LEADERSHIP PROGRAM AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL IT WAS A BAD ASSUMPTION THE COMPANY INSTEAD WAS HOPING THAT THE PROGRAM WOULD IMPROVE THE EXECUTIVE'S INTERPERSONAL SKILLS NOBODY WAS STRAIGHT WITH ME BEFORE I TOOK THE COURSE THE EXECUTIVE SAYS AS A RESULT HE ADDS MY BOSSES WERE LOOKING FOR A CHANGED MAN BUT I WASN'T ANY KINDER OR GENTLER IF ANYTHING I SUPPOSE I WAS MORE AGGRESSIVE WHICH TO THEM I GUESS WAS MORE ABRASIVE AFTER TWO LATERAL MOVES HE LEFT THE COMPANY A 39YEAROLD MANAGER AT A MIDWESTERN FOOD COMPANY WAS EXCITED ABOUT IMPLEMENTING BOLD INNOVATIONS THAT HE HAD GLEANED FROM A COURSE AT NORTHWESTERN UNIVERSITY'S KELLOGG SCHOOL BUT HIS BOSS DIDN'T SHARE HIS ENTHUSIASM HE WASN'T THE LEAST BIT INTERESTED IN WHAT I HAD LEARNED SAYS THE MANAGER WHAT HE CARED ABOUT WAS WHEN I WAS GOING TO GET CAUGHT UP WITH ALL THE WORK I HAD MISSED EXECUTIVE EDUCATION CLEARLY ISN'T ALWAYS THE TICKET TO SUCCESS BUT SOMETIMES IT'S EVEN WORSE THAN NOT BEING SUCCESSFUL WORSE THAN BEING JUST A WASTE OF TIME AND MONEY SOMETIMES IT ACTUALLY DOES DAMAGE SPECIALIZED TRAINING PROGRAMS FOR BOSSES FOR INSTANCE CAN SABOTAGE CAREERS AND SQUANDER VALUABLE TALENT THEY CAN UNDERMINE MORALE AMONG PEERS WHO AREN'T CHOSEN TO PARTICIPATE BY PROMOTING TEAMWORK AND PARTICIPATORY MANAGEMENT EXECUTIVEEDUCATION PROGRAMS CAN UNDERMINE AUTHORITY AND LEADERSHIP IN CORPORATIONS AND THEY CAN FOSTER A NARROW HOMOGENIZED APPROACH TO STRATEGIC ISSUES THAT EVENTUALLY ERODES A COMPANY'S COMPETITIVE ADVANTAGE FOR EXAMPLE SOME OBSERVERS ATTRIBUTE THE CURRENT COMPETITIVE PROBLEMS OF INTERNATIONAL BUSINESS MACHINES CORP AT LEAST IN PART TO EXECUTIVEEDUCATION OVERKILL IF THE LEARNING IN THESE PROGRAMS IS CONNECTED IN A CREDIBLE WAY TO THE CORE VALUES OF THE COMPANY THEN EVERYONE WILL BENEFIT SAYS JOHN W ROSENBLUM DEAN OF DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF VIRGINIA BUT WHEN THERE IS A DISCONNECT BETWEEN THE LEARNING ACTIVITIES AND THE OTHER IMPORTANT STRATEGIES OF THE BUSINESS THINGS BREAK DOWN INDIVIDUALS ARE ENCOURAGED OR COERCED TO TAKE THE COURSES WITHOUT MUCH THOUGHT AS TO WHY A LOT CAN GO WRONG THE SEEDS OF HARM ARE OFTEN PLANTED BEFORE THE COURSE WORK BEGINS MANY CANDIDATES ARE CHOSEN FOR THE WRONG REASONS OFTEN AS A PERK A REWARD OR A VACATION RATHER THAN AS RECOGNITION THAT CONTINUAL LEARNING IS NECESSARY AND EXPECTED WHEN EXECUTIVE EDUCATION IS USED AS A REWARD THAT'S ABSOLUTELY WRONG SAYS DONALD A LAIDLAW VICE PRESIDENT OF HUMAN RESOURCES AT GULFSTREAM AEROSPACE CORP IN SAVANNAH GA MR LAIDLAW A FORMER HUMANRESOURCE MANAGER AT IBM AND SEVERAL OTHER COMPANIES SAYS HE HAS SEEN PASSEDOVER MANAGERS FEEL EXCLUDED AND BECOME DISCOURAGED CONVINCED THAT THEY WERE NO LONGER VIEWED BY THEIR SUPERIORS AS VITAL TO THE COMPANY MR LAIDLAW ALSO DESCRIBES CASES IN WHICH SOME INDIVIDUALS FELT THEY WERE ANOINTED BECAUSE OF WHAT THEY WERE TOLD AND THE WAY THEY WERE SELECTED FOR ADVANCED TRAINING THEY FORGOT THE PURPOSE FOR GOING HE SAYS INSTEAD HE SAYS THEY ADOPTED AN ATTITUDE OF I AM DIFFERENT AND I AM REALLY REALLY GOOD IN FACT SOME EXPERTS BELIEVE THAT COMPANIES OFTEN SELECT PRECISELY THE WRONG CANDIDATES FOR EXECUTIVE EDUCATION THERE IS A TENDENCY TO WRITE OFF THE MANAGERS WHO HAVE HIT A CAREER PLATEAU SAYS ROBERT QUINN A PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT THE UNIVERSITY OF MICHIGAN WHO IS STUDYING FORD MOTOR CO MIDDLE MANAGERS WHO UNDERWENT SPECIAL LEADERSHIP TRAINING BUT I AM BEGINNING TO SUSPECT THAT THESE EXECUTIVES MAY BE THE MOST RESPONSIVE TO TRANSFORMATION PROGRAMS SAYS PROF QUINN FOR THEM THE REWARDRISK RATIO IS VERY DIFFERENT THEY ARE OFF THE CAREER RACE TRACK SO THEY'RE MUCH MORE WILLING TO TAKE A RISK THEY'RE PROBABLY AN UNTAPPED RESOURCE THE SOLUTION RECOMMENDED BY MOST HUMANRESOURCES EXPERTS IS THAT EVERYBODY IN THE MANAGEMENT RANKS SHOULD BE INCLUDED IN SOME FORM OF ADVANCED EDUCATION OR TRAINING SO THAT ALL SHARE A SENSE OF RESPONSIBILITY FOR THE COMPANY MISSION OF CONSTANT IMPROVEMENT EVERYBODY IN AN ORGANIZATION HAS A RESPONSIBILITY TO GET THEMSELVES DEVELOPED SAYS MR LAIDLAW IF YOU ARE NOT LEARNING YOU ARE NOT GROWING IF YOU ARE NOT GROWING YOU ARE GOING TO GO BACKWARD CONTINUAL DEVELOPMENT FOR EVERYONE NEEDS TO BE PART OF THE BUSINESS STRATEGY BUT STRATEGIES CAN'T WORK IF THEY AREN'T CONVEYED TOO OFTEN TOP OFFICERS FAIL TO MAKE CLEAR TO MANAGERS WHY THEY HAVE BEEN SELECTED TO ATTEND AN EXECUTIVETRAINING PROGRAM IN THESE CASES NOBODY BOTHERS TO DISCUSS THE GOALS OF THE EXPERIENCE THAT LIES AHEAD OR TO HELP CANDIDATES DEVELOP PLANS FOR LEARNING AND FOR APPLYING WHAT IS LEARNED ALBERT A VICERE ASSOCIATE DEAN FOR EXECUTIVE EDUCATION AT PENNSYLVANIA STATE UNIVERSITY'S BUSINESS SCHOOL SUGGESTS THIS COMMUNICATIONS GAP IS ACTUALLY A GULF A RECENT STUDY BY HIS COLLEAGUES FOUND THAT 90 OF THE COMPANIES POLLED INSISTED THEY BRIEFED CANDIDATES THOROUGHLY BEFORE SENDING THEM OFF TO EXECUTIVE PROGRAMS BUT FEWER THAN 20 OF THE CANDIDATES THEMSELVES SAID ANYONE AT THEIR COMPANIES HAD EVER TALKED TO THEM ABOUT THE PURPOSE OR GOALS OF THEIR LEARNING ASSIGNMENTS AND THERE IS A LOT TO DISCUSS NEIL M JOHNSTON PRESIDENT OF ORBIS LEARNING CORP A MANAGEMENT CONSULTANT IN LOS ALTOS CALIF CITES SEVERAL ISSUES THAT OUGHT TO BE ADDRESSED BUT USUALLY AREN'T AMONG THEM DOES THE CANDIDATE'S FAMILY UNDERSTAND WHAT WILL BE INVOLVED AND WHY IT'S IMPORTANT HAVE PLANS BEEN MADE FOR BACKUP MANAGERS WHILE THE CANDIDATE IS GONE WHAT OPPORTUNITIES WILL THE CANDIDATE HAVE FOR READING AND OTHER PREPARATION BEFORE THE COURSE STARTS WHAT PLANS HAVE BEEN MADE FOR THE CANDIDATE TO TALK WITH PEERS IN THE COMPANY AFTERWARD ABOUT WHAT WAS LEARNED MR JOHNSTON ALSO QUESTIONS THE PRACTICE OF USING SUCH EXECUTIVE PROGRAMS AS RITES OF PASSAGE TO TEST A CANDIDATE'S POTENTIAL FOR ADVANCEMENT MANY CANDIDATES DON'T EVEN KNOW THEY ARE BEING TESTED HE SAYS BECAUSE THEIR COMPANIES DON'T REVEAL WHETHER THEY ARE ON THE HIGHPOTENTIAL LIST IN STILL OTHER CASES THE TESTS CANDIDATES FACE ARE ALL TOO OBVIOUS AND THEY CAN BACKFIRE MR JOHNSTON DESCRIBES EXECUTIVETRAINING PROGRAMS BASED ON OUTDOOR EXERCISES THAT FORCE SOME PEOPLE INTO CHALLENGES THEY ARE PHYSICALLY INCAPABLE OF MEETING SUCH AS JUMPING DOWN A CLIFF SCALING A WALL OR FALLING BACKWARD FROM A HIGH PERCH INTO THE ARMS OF TEAMMATES IN A COUPLE OF THESE PROGRAMS MR JOHNSTON SAYS HE HAS OBSERVED PEOPLE WHO WERE DEVASTATED BECAUSE THEY WERE LABELED AS THE ONE WHO COULDN'T DO IT RESIDUAL DAMAGE CAN BE SEVERE SOME MANAGERS CARRIED WITH THEM THE BURDEN OF NOT HAVING DONE THE WHOLE PROGRAM MR JOHNSTON SAYS I HAVE SEEN THIS MANIFEST ITSELF LATER AS A DESIRE TO MOVE ON TO ANOTHER TEAM OR ANOTHER JOB THE BIG PHYSICAL CHALLENGE WAS DESIGNED TO BE MOTIVATIONAL AND UPLIFTING BUT IT HAD AN UNSETTLING EFFECT THEN THERE ARE THE PROGRAMS THAT ARE TOO UPLIFTING CANDIDATES ARE FILLED WITH FALSE HOPES ABOUT HOW FAR THEY WILL ADVANCE AND THE POSITIVE DIFFERENCES THEY CAN MAKE WHEN THEY RETURN BUT AS COMPANY ORGANIZATIONS BECOME SMALLER AND FLATTER CHANCES FOR PROMOTION ARE REDUCED THIS IS THE TIME FOR RIGHTSIZING THE BUSINESS BUT WHAT ARE PEOPLE GETTING IN EXECUTIVEEDUCATION CASE STUDIES ASKS DOUGLAS A READY EXECUTIVE DIRECTOR OF INTERNATIONAL CONSORTIUM FOR EXECUTIVE DEVELOPMENT RESEARCH IN LEXINGTON MASS THEY'RE READING ALL ABOUT HOW TO TAKE OVER A UNIT HOW TO RUN LARGE ORGANIZATIONS SO NATURALLY THE FIRST THING THEY WANT TO DO WHEN THEY RETURN IS GRAB THE REINS REALITIES OF RETURNING CAN BE HARSH CALHOUN W WICK PRESIDENT OF A RESEARCH AND CONSULTING FIRM IN WILMINGTON DEL RECALLS A CLIENT'S ACCOUNT OF ATTENDING A COURSE AND THEN SHARING CANDIDLY WITH HIS BOSS SOME OF HIS NEW INSIGHTS AND EXPECTATIONS ABOUT HOW HE WANTED THEIR ORGANIZATION TO CHANGE FIVE WEEKS LATER HE WAS FIRED REPORTS MR WICK BECAUSE HE HAD RAISED ISSUES HIS BOSS DID NOT WANT TO ADDRESS MR WICK ALSO EMPHASIZES HOW RARELY MOST COMPANIES FOLLOW THROUGH AFTER EXECUTIVE TRAINING HE DESCRIBES A VISIT TO A PLANT SITE OF A FORTUNE 100 COMPANY SIX MONTHS AFTER CONDUCTING A SEMINAR HE WANTED TO SEE IF PARTICIPANTS HAD IMPLEMENTED ANY OF HIS SUGGESTIONS AT THE END OF HIS VISIT HE SAYS ONE MANAGER TOLD HIM THIS IS THE FIRST TIME IN MY 23 YEARS WITH THIS COMPANY THAT SOMEONE HAS COME BACK TO SEE HOW WE ACTUALLY IMPLEMENTED WHAT WE LEARNED IN A COURSE CHARLES FERGUSON A FORMER BUSINESS RESEARCHER AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WHO IS NOW AN INDEPENDENT CONSULTANT CITES ANOTHER TROUBLING TENDENCY OVER TIME HE SAYS THE EXECUTIVE PROGRAMS AT BUSINESS SCHOOLS AND THE LEADERSHIPDEVELOPMENT PROGRAMS OPERATED INTERNALLY BY MANY LARGE COMPANIES HAVE BECOME INBRED AND HIGHLY POLITICIZED THE TONE AND CONTENT SELFCONGRATULATORY CORPORATE ASSUMPTIONS AND STRATEGIES MAY BE OUTDATED OR DESERVING OF FRESH SCUTINY HE SAYS BUT TOO OFTEN EXECUTIVEEDUCATION PROGRAMS SERVE TO REVERE AND REINFORCE THEM INSTEAD IN ADDITION HE SAYS SOME COMPANIES TEND TO SELECT PEOPLE TO GO TO PROGRAMS WHO ALREADY THINK SIMILARLY THE RESULT HE CONTENDS CAN BE A LACK OF EXPOSURE TO SUSTAINED CRITICAL THINKING NOWHERE DOES THE INTERNAL APPROACH APPEAR TO HAVE BEEN MORE DETRIMENTAL THAN AT IBM FOR DECADES THE COMPUTER GIANT INVESTED HUGE AMOUNTS IN ITS INHOUSE COURSES RECENTLY THE COMPANY HAS BEGUN TO SCALE BACK BUT AT THE PEAK IBM CARRIED A ROSTER OF MORE THAN 1200 INSTRUCTORS KNOWN AS PRESENTERS THE TYPICAL FACULTY AT A LARGE UNIVERSITY BUSINESS SCHOOL IS ONLY ABOUT A TENTH THAT SIZE PERHAPS THE BEST KNOWN IBM COURSE WAS ITS ADVANCED MANAGEMENT PROGRAM A DEMANDING CURRICULUM EXPERIENCED BY ABOUT 30 MANAGERS A YEAR THE PROGRAM WHICH CRAMMED 16 TO 18 HOURS OF INSTRUCTION INTO EACH DAY CAME TO BE DESCRIBED AS HARVARD BUSINESS SCHOOL IN THREE WEEKS SOME SCHOLARS BELIEVE IBM TOOK ITS PROGRAMS TOO FAR IBM DEVELOPED TOO STRONG A SET OF BELIEFS AND THEY BECAME RULES OF THINKING SAYS PENN STATE'S MR VICERE THAT STANDARDIZED WAY OF THINKING WAS REINFORCED BY THE COMPANY'S MASSIVE COMMITMENT TO EDUCATION IT KEPT THE COMPANY FROM MAKING ADJUSTMENTS SOME TRAINING WENT SO FAR AS TO ENCOURAGE A UNIFORM WAY FOR IBM MANAGERS TO TALK ACCORDING TO A BUSINESSSCHOOL ADMINISTRATOR FAMILIAR WITH IBM'S OPERATIONS THE COMPANY'S SENIOR MANAGEMENT DECIDED THAT IT WOULD BE INAPPROPRIATE TO HAVE EMPLOYEES DISAGREEING OR SAYING NO TO EACH OTHER AS A RESULT THE ADMINISTRATOR SAYS THE PREFERRED IBM EXPRESSION BECAME TO NONCONCUR AS IN I NONCONCUR WITH YOUR IDEA SIMILARLY WHENEVER A DECISION WAS MADE TO KILL A PROJECT OR VENTURE IBM EXECUTIVES WERE SUPPOSED TO SAY WE ARE GOING TO HAVE TO DECOMMIT IBM'S EDUCATION COURSES WERE FINANCED CENTRALLY OUT OF CORPORATE HEADQUARTERS SO IN THEORY THERE WAS NO COST TO ANY OF THE USERS THE BUSINESS UNITS SAW IT AS FREE GOODS SAYS ROBERT E MITTELSTAEDT JR WHARTON'S VICE DEAN WHO IS INVOLVED IN AN EFFORT TO REVAMP IBM'S EDUCATION PRACTICES AS A RESULT COURSE OFFERINGS PROLIFERATED ACCORDING TO EDUCATORS AND FORMER IBM OFFICIALS UNTIL ABOUT TWO YEARS AGO IT WAS HARD FOR IBM TO ADMIT THAT IT DIDN'T HAVE ALL THE ANSWERS INTERNALLY BUT AS SEVERE MARKETING AND PRODUCTDEVELOPMENT PROBLEMS BECAME APPARENT THE COMPANY SOUGHT HELP FROM WHARTON AND OTHER OUTSIDE INSTITUTIONS SINCE THEN ABOUT 1500 IBM MANAGERS AND SENIOR EXECUTIVES HAVE ATTENDED CUSTOMIZED PROGRAMS AT WHARTON MEANWHILE IBM HAS REORGANIZED MOST OF ITS OWN INSTRUCTIONAL PROGRAMS UNDER A SEPARATE COMPANY CALLED SKILL DYNAMICS AND IBM UNITS NOW HAVE TO PURCHASE THE TRAINING INTERNAL DEMAND FOR THE COURSES HAS FALLEN AT LEAST 50 CONCLUDES MR MITTELSTAEDT THAT WAS THE ONLY WAY TO FIND OUT WHAT DEMAND REALLY WAS GERALD M CZARNECKI IBM'S RECENTLY APPOINTED SENIOR VICE PRESIDENT HUMAN RESOURCES AND ADMINISTRATION CONCEDES THAT THE COMPANY'S MASSIVE INTERNALTRAINING EFFORTS MAY HAVE CONTRIBUTED TO THE COMPANY'S WOES BUT HE FAULTS THE COMPANY'S PREVIOUS MANAGEMENT NOT ITS TRAINING FOR CREATING THE PROBLEMS IN THE FIRST PLACE THE ASSERTION THAT IBM'S TRAINING REINFORCED THE WRONG CULTURE MAY BE TRUE HE SAYS BUT YOU CAN'T BLAME THE TRAINING FUNCTION FOR MISTAKES MADE BY MANAGEMENT IN THE RUNNING OF THAT COMPANY WHAT YOU HAVE TO CONCLUDE IS THAT THE MANAGEMENT PHILOSOPHY WAS WRONG WHILE COST PRESSURES HAVE FORCED IBM TO REDUCE ITS INTERNAL EDUCATION PROGRAMS MR CZARNECKI DEFENDS THE NOTION OF TRAINING AND ITS ABILITY TO HELP A COMPANY CONVEY ITS CORE VALUES OBJECTIVES AND PRINCIPLES HOWEVER MR CZARNECKI SAYS IBM IS INCLUDING MORE OUTSIDERS AMONG ITS INSTRUCTORS TO INTERJECT NEW THOUGHT AND GUARD AGAINST THE KIND OF INSULARITY THAT CHARACTERIZED IBM'S PREVIOUS TRAINING EFFORTS COMPANIES THAT ARE THE DYNAMIC LEADERS OF BUSINESS THESE DAYS ARE THOSE THAT HAVE LEARNED HOW TO RENEW THAT HAVE REENERGIZED HE SAYS SOMETIMES YOU CAN'T DO THAT USING PEOPLE INSIDE SOMETIMES THE EXISTING AGENTS CAN'T DO ANYTHING BUT REINFORCE THE EXISTING CULTURE PERHAPS THE HARSHEST CRITICISM OF CURRENT EXECUTIVE EDUCATION COMES FROM ELLIOTT JAQUES A MANAGEMENTSCIENCE PROFESSOR AT GEORGE WASHINGTON UNIVERSITY IN WASHINGTON DC A PSYCHOANALYST BY TRAINING DR JAQUES ATTACKS TRAINING THAT PROMOTES SUCH CONCEPTS AS QUALITY CIRCLES EMPOWERMENT PARTICIPATORY MANAGEMENT AND CROSSFUNCTIONAL TEAMWORK WHAT'S BEING TAUGHT IS TEAMS TEAMS TEAMS HE SAYS BUT THESE TEAMS ARE ACTUALLY UNDERCUTTING THE IMPORTANCE OF MANAGERIAL ACCOUNTABILITY AND LEADERSHIP IT'S HAVING A DISFUNCTIONAL EFFECT IN PARTICULAR DR JAQUES CRITICIZES THE WIDELY TAUGHT NOTION THAT LEADERSHIP IS DIFFERENT FROM MANAGEMENT PEOPLE WHO ATTEND THESE PROGRAMS ARE TAUGHT THAT MANAGEMENT IS LOWER DOWN WHERE THINGS ARE ROUTINE HE SAYS BUT THAT DEVALUES MANAGEMENT AT THE FIRST AND MIDDLE LEVELS FIRSTLINE MANAGERS ARE FURTHER UNDERCUT BY SELFMANAGED TEAMS OF EMPLOYEES DR JAQUES SAYS LINES OF AUTHORITY AND RESPONSIBILITY ARE BLURRED NOBODY IS IN CHARGE AND WORK GETS DONE ONLY AFTER INTERMINABLE DELAYS AS AN EXAMPLE DR JAQUES DESCRIBES A MANUFACTURING GIANT WITH 360 PEOPLE ASSIGNED TO 18 CROSSFUNCTIONAL TEAMS FOR PRODUCT DESIGN ACCOUNTABILITY ON THESE TEAMS IS ABOUT AS UNCLEAR AS A DOG'S DINNER HE SAYS SIMILARLY HE SAYS MANAGERS AT A LEADING CONSUMERPRODUCTS COMPANY IN THE NORTHEAST ARE FED UP TO THE EYEBALLS WITH EXECUTIVEEDUCATION PROGRAMS THAT HAVE RUINED RELATIONSHIPS WITH THEIR SUBORDINATES THEY TELL ME THEY HESITATE TO SPEAK UP ABOUT TEAM ACTIVITIES THAT THEY CAN SEE ARE FAILING BECAUSE IT WILL BE TAKEN AS UNWARRANTED INTERFERENCE BUT DR JAQUES ACKNOWLEDGES THAT HIS OWN PREFERENCE FOR TRADITIONAL HEIRARCHY MAKES HIM UNFASHIONABLE IN BUSINESSEDUCATION CIRCLES I USED TO BE CALLED FASCIST AND MARXIST HE SAYS NOW I GET CALLED MILITARIST MR ALLEN IS A NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9309100181 930910 EXECUTIVE EDUCATION A SPECIAL REPORT COVER TAKING CONTROL COMPANIES SPEND MILLIONS OF DOLLARS TO TEACH THEIR EXECUTIVES NEW WAYS OF DOING BUSINESS NOW THEY ARE FINALLY ASKING WHERE DOES THE MONEY GO BY GILBERT FUCHSBERG WOULD YOU SPEND MILLIONS OF DOLLARS WITHOUT KNOWING WHAT IF ANYTHING YOU'RE GETTING FOR IT INCREDIBLY THAT'S WHAT COMPANIES HAVE BEEN DOING FOR YEARS IN A QUEST TO MAKE THEIR BEST MANAGERS BETTER THEY HAVE PAID CONSULTANTS BUSINESS SCHOOLS TRAINERS AND GURUS TO HELP MOLD VICE PRESIDENTS INTO PRESIDENTS TO BANG MARKETING SENSE INTO NUMBERMUMBLING DIVISION HEADS TO TELL CHIEF OPERATING OFFICERS HOW TO EXPAND WITHOUT GOING BUST TENS OF THOUSANDS OF TOP MANAGERS AND MANY WHO ASPIRE TO THEIR RANKS HAVE SLOGGED THROUGH DAYS OF SPEECHES AND SLIDE SHOWS AT CORPORATE MEETING CENTERS EVEN TEAMCLIMBED CLIFFS IN SUBZERO CLIMATES FORSAKING WEEKS OF WORK AND FAMILY LIFE FOR SOUPEDUP DORMITORIES AND ACADEMIC CASE STUDIES ALL TO GET READY FOR THE NEXT BIG THING THERE'S JUST ONE PROBLEM NO ONE HAD A CLUE WHETHER ANY OF IT MATTERED WHETHER ANY OF THIS TRAINING DELIVERED ON ITS PROMISE INDEED PERHAPS NO AREA OF CORPORATE ENDEAVOR HAS SO COMPLETELY ELUDED SCRUTINY FOR SO LONG AS THE MYRIAD ACTIVITIES THAT CONSTITUTE EXECUTIVE EDUCATION THAT IS UNTIL NOW IN A MOVEMENT AFFECTING HOW LEGIONS OF BUSINESS PEOPLE LEARN HOW TO RUN THINGS COMPANIES NATIONWIDE ARE ASSUMING UNPRECEDENTED CONTROL OVER THE WORLD OF MIDCAREER EXECUTIVE TRAINING THEY ARE FORCING REVISIONS IN WHAT IS TAUGHT HOW AND AT WHAT PRICE AS WELL AS CHANGING WHO IS ELIGIBLE AND WHY THE THRUST OF THEIR EFFORTS TO BETTER LINK TRAINING TO REAL BUSINESS NEEDS COMPANIES ARE GETTING A LOT SMARTER AND A LOT MORE ACTIVE IN GETTING WHAT THEY WANT OUT OF EXECUTIVE EDUCATION SAYS JOHN HUMPHREY PRESIDENT OF FORUM CORP A BOSTONBASED TRAINING FIRM ADDS DOUGLAS READY HEAD OF INTERNATIONAL CONSORTIUM FOR EXECUTIVE DEVELOPMENT RESEARCH IN LEXINGTON MASS A CORPORATEUNIVERSITY GROUP RESEARCHING EXECUTIVEDEVELOPMENT ISSUES COMPANIES ARE BECOMING MUCH MORE DEMANDING CUSTOMERS IT'S AS SIMPLE AS THAT AS THEY SEEK GREATER CONTROL CORPORATIONS ARE ASSUMING POWERFUL NEW LEVERAGE OVER TRAINING PROVIDERS WHO LONG PRACTICED A TAKEITORLEAVEIT ATTITUDE SHUNNING CRITICISM OF THEIR TEACHING METHODS AND CURRICULA THE PRESSURE IS PROMPTING PARTICULARLY BIG CHANGES AMONG THE NATION'S TOP BUSINESS SCHOOLS WHICH COMBINED RUN SEVERAL HUNDRED COURSES ANNUALLY ATTRACTING THOUSANDS OF EXECUTIVES MOST NOTABLY THEY'RE MOVING FROM SIMPLY RUNNING GENERIC COURSES TO COACHING INDIVIDUAL COMPANIES CREATING NEW COMPETITION FOR CONSULTANTS AND ADDING YET MORE CHOICE TO AN ALREADY CROWDED TRAINING MARKET TO BE SURE THE NEW ACTIVISM IS HARDLY UNIVERSAL MANY COMPANIES ARE STILL SPENDING HEAVILY ON EXECUTIVE EDUCATION WITHOUT MUCH CARE EXPERTS SAY IT'S STILL FRIGHTENING TO SEE HOW SOME DECISIONS ARE BEING MADE INVOLVING HUGE DOLLARS IN THIS AREA MR READY SAYS AND MANY TOP BUSINESS SCHOOLS STILL FACE CHALLENGES IN SATISFYING THEIR CLIENTS ACCORDING TO A NEW STUDY BY THE WALL STREET JOURNAL AND BRICKER'S INTERNATIONAL DIRECTORY A LEADING GUIDE TO EXECUTIVEEDUCATION OFFERINGS COMPANIES ARE MORE SATISFIED THAN NOT WITH THE RETURNS THEY'RE GETTING FROM UNIVERSITYBASED NONDEGREE EXECUTIVE PROGRAMS YET SOME OF THE MOST POPULAR EXPENSIVE AND WIDELY RENOWNED COURSES ARE UNDERPERFORMING THEIR LESSERKNOWN COMPETITORS AND GENERATING BELOWAVERAGE RETURNS FOR PARTICIPANTS AND THEIR ORGANIZATIONS THE STUDY BASED ON SURVEY RESPONSES OF EXECUTIVEDEVELOPMENT OFFICIALS AT 93 COMPANIES SUGGESTS THAT AMONG FLAGSHIP PROGRAMS IN MANAGEMENT PROGRAMS CARNEGIE MELLON UNIVERSITY INSEAD AND THE UNIVERSITY OF VIRGINIA'S DARDEN SCHOOL ARE DOING THE BEST JOB OF DELIVERING VALUE TO COMPANIES AND THEIR EXECUTIVES TRAILING THE LIST HARVARD COLUMBIA AND NORTHWESTERN UNIVERSITIES THOUGH THEIR EVALUATIONS FROM COMPANIES AREN'T TERRIBLE FOR THE FULL RESULTS PLEASE TURN TO PAGE R8 HOW MUCH MONEY ARE WE TALKING ABOUT HOW MUCH DO COMPANIES SHELL OUT FOR EXECUTIVE TRAINING THAT DOESN'T LEAD TO ANY DEGREE THE ANSWER IS A LOT ALTHOUGH NOBODY KNOWS PRECISELY HOW MUCH ONE DIFFICULTY IS DEFINING WHO IS AN EXECUTIVE ANOTHER IS THAT SPENDING IS DECENTRALIZED IN MANY COMPANIES AND THEREFORE HARD TO TRACK THE MOST WIDELY CITED OVERALL ESTIMATE OF ABOUT 3 BILLION WAS DEVELOPED SEVERAL YEARS AGO BY THE AMERICAN SOCIETY FOR TRAINING AND DEVELOPMENT A TRADE GROUP IN ALEXANDRIA VA FORMAL TRAINING FOR ALL MANAGERS TOTALS ABOUT 6 BILLION OR ONEFIFTH OF THE 30 BILLION TOTAL CORPORATETRAINING BILL THE SOCIETY SAYS SPENDING ON EXECUTIVE LEVEL MANAGERS THOSE WITH BUDGETARY AUTHORITY PROBABLY ACCOUNTS FOR HALF OF THAT AMOUNT THE SOCIETY SAYS AND LARGER COMPANIES SPEND THE BULK OF THAT EVIDENCE OF HOW MUCH INDIVIDUAL COMPANIES SPEND IS A BIT STRONGER IT ALSO SUGGESTS THAT SPENDING IS RISING FOLLOWING CUTBACKS DURING THE RECESSION SOME 80 OF 36 COMPANIES RECENTLY SURVEYED BY ALBERT A VICERE ASSOCIATE DEAN FOR EXECUTIVE EDUCATION AT PENNSYLVANIA STATE UNIVERSITY'S SMEAL COLLEGE OF BUSINESS REPORTED THAT THEIR 1992 BUDGETS AVERAGING ABOUT 2 MILLION EACH WOULD HOLD STEADY OR INCREASE THIS YEAR MOST COMPANIES CONTACTED FOR THIS STORY SAY THEY WILL SPEND MORE ON EXECUTIVE EDUCATION THIS YEAR THAN EVER BEFORE AMERICAN TELEPHONE & TELEGRAPH CO FOR ONE ESTIMATED ITS DIRECT COSTS ON COURSES FOR EXECUTIVES AT ABOUT 7 MILLION NOT INCLUDING SALARIES OF PARTICIPANTS AND TRAVEL EXPENSES AND WHERE'S THAT MONEY GOING AMONG 472 EXECUTIVEEDUCATION PROGRAMS REPORTING 1994 TUITION TO BRICKER'S INTERNATIONAL DIRECTORY THE COST OF A UNIVERSITYBASED NONDEGREE EXECUTIVE PROGRAM WILL RANGE FROM 695 FOR A THREEDAY COURSE AT GEORGE WASHINGTON UNIVERSITY TO 50500 FOR A NINEMONTH PROGRAM AT STANFORD UNIVERSITY THE AVERAGE 1994 TUITION 4997 THE AVERAGE DURATION ABOUT 2 1/2 WEEKS SOME OF THE BESTKNOWN GENERALMANAGEMENT PROGRAMS ARE AMONG THE MOST EXPENSIVE ON A PERWEEK BASIS TAKING THE 18 SUCH COURSES IN THE WALL STREET JOURNAL/BRICKER'S SURVEY 1994 COSTS AVERAGE MORE THAN 3700 WEEKLY WHATEVER THE PRECISE SIZE OF THE MARKET COMPANIES AND PROVIDERS ALIKE SAY IT HAS MOVED INTO A NEW ERA OF ACCOUNTABILITY SIGNALING THE PASSING OF EXECUTIVE EDUCATION AS VACATION A HIATUS BETWEEN ASSIGNMENTS OR REWARD FOR CAREER ACHIEVEMENTS VERY FEW PEOPLE SEE THESE PROGRAMS ANYMORE AS A PERK SAYS MR VICERE EXECUTIVE EDUCATION IS NOW TAKEN VERY SERIOUSLY THIS IS ESPECIALLY SO INDUSTRY OFFICIALS EXPLAIN BECAUSE EXECUTIVE EDUCATION IS NO LONGER SEEN MERELY AS A MEANS OF ASSISTING INDIVIDUAL EXECUTIVES IN THEIR JOBS RATHER IT'S EMERGING AS A TOOL FOR HELPING ENTIRE COMPANIES ENGINEER BROAD STRATEGY SHIFTS LEADERSHIP TRAINING HAS TYPICALLY BEEN ABOUT CAREERS WHAT PEOPLE NEED TO KNOW TO MANAGE A DEPARTMENT INSTEAD OF A UNIT SAYS MR HUMPHREY OF FORUM WHAT WE SEE NOW IS ORGANIZATIONS WANTING GUIDANCE ABOUT HOW TO WIN CARING ABOUT CUSTOMERS AND PROCESSES AND QUALITY THAT STUFF WASN'T ON THE SLATE FIVE YEARS AGO THE GROWING INFLUENCE OF COMPANYTRAINING OFFICIALS IS ANOTHER FORCE DRIVING GREATER CORPORATE CONTROL OVER EXECUTIVE EDUCATION ONCE A MINOR FUNCTION OF PERSONNEL DEPARTMENTS WORKPLACE TRAINING AND EDUCATION OF ALL SORTS FROM BASIC SKILLS FOR CLERKS AND NEW ASSEMBLY TECHNIQUES FOR FACTORY WORKERS TO COMPUTER HELP FOR EMPLOYEES OF EVERY STRIPE HAS BECOME MORE PROMINENT IN RECENT YEARS SO TOO HAVE THOSE WHO OVERSEE IT EMPLOYERS ARE ALSO SEEKING WAYS TO ACTIVELY DEVELOP MANAGERS MOTIVATED PARTLY BY THE DESIRE TO DIVERSIFY THEIR EXECUTIVE RANKS MORE COMPANIES ARE CHARTING CAREER PLANS TO GUARANTEE SELECTED HIGH POTENTIAL EMPLOYEES INCLUDING MINORITYGROUP MEMBERS AND WOMEN THE SKILLS AND EXPOSURE THEY NEED TO ADVANCE ALONG WITH JOB ROTATION MENTOR RELATIONSHIPS AND SPECIAL ASSIGNMENTS EXECUTIVE EDUCATION IS INCREASINGLY CONSIDERED ESSENTIAL EXPERIENCE THE FIRST STEP THEN IS TAKING ALL THIS SPENDING MORE SERIOUSLY NOW THE HARD PART SPENDING THE MONEY WISELY ONE MAJOR SIGN OF RISING CORPORATE CONTROL OVER EXECUTIVE EDUCATION IS A GROWING INVESTMENT IN COURSES DESIGNED EXCLUSIVELY FOR INDIVIDUAL COMPANIES MORE THAN THREE OF EVERY FOUR EXECUTIVEEDUCATION DOLLARS NOW GO TOWARD SUCH PROGRAMS RATHER THAN TO THE PUBLIC OR OPENENROLLMENT BUSINESSSCHOOL COURSES THAT DRAW PARTICIPANTS FROM A MULTITUDE OF FIRMS AND COMPANIES PLAN TO FOCUS EVEN MORE ON CUSTOMTAILORED PROGRAMS WHETHER RUN INHOUSE OR IN CONJUNCTION WITH BUSINESS SCHOOLS OR CONSULTANTS MR VICERE'S STUDY SHOWS SEVERAL COMPANIES INCLUDING GENERAL ELECTRIC CO MOTOROLA CORP AND XEROX CORP HAVE EVEN SET UP THE EQUIVALENT OF CORPORATE UNIVERSITIES TO DEVELOP AND RUN INTERNAL TRAINING ON A HUGE SCALE THE APPEAL OF INTERNAL PROGRAMS IS SIMPLE COMPANIES CAN FOCUS ON THEIR SPECIFIC NEEDS WITHOUT DISTRACTION THEY CAN DECIDE WHAT'S TAUGHT WHO TEACHES IT HOW LONG IT IS AND WHO ATTENDS AND THEY CAN DISCUSS PROPRIETARY ISSUES WE CAN GET WHAT WE WANT AND WHAT WE NEED SAYS WILLARD P ANDERSEN DIRECTOR OF TRAINING AND DEVELOPMENT FOR ITT CORP WHICH SENDS ABOUT 50 HIGH POTENTIAL MANAGERS EACH YEAR TO A TWOWEEK ITTONLY PROGRAM AT DUKE UNIVERSITY'S FUQUA SCHOOL IN DURHAM NC IT'S A LITTLE BIT DIFFERENT FROM WHAT EVERYONE ELSE IS GETTING AND IT'S BEING DONE IN THE FASHION WE WANT AND IF IT'S NOT WE CAN CHANGE IT SUPPORTERS SAY INTERNAL PROGRAMS RANK AMONG THE MOST EFFECTIVE WAYS FOR COMPANY LEADERS TO CONVEY THEIR VISION OR A NEW STRATEGY TO LARGE GROUPS OF MANAGERS ALL AT ONCE AND THROUGH THEM TO THE ENTIRE ORGANIZATION CAMPBELL SOUP CO FOR INSTANCE LAUNCHED AN INTERNAL LEADERSHIP DEVELOPMENT PROGRAM THIS YEAR TO ACCULTURATE AS MANY AS 100 EXECUTIVES ANNUALLY TO THE COMPANY'S GOAL OF CAMPBELL BRANDS PREFERRED AROUND THE WORLD SAYS EDWARD WALSH VICE PRESIDENT HUMAN RESOURCES THE COURSE TAUGHT IN TWO THREEDAY STINTS ABOUT TWO MONTHS APART TO 25 OR SO PEOPLE AT A TIME SUPPLEMENTS CAMPBELL'S PRIMARY EXECUTIVE DEVELOPMENT TOOL OF IMPARTING EXPERIENCE THROUGH JOB ROTATION AND STRETCH ASSIGNMENTS MR WALSH SAYS COMPANIES ARE ALSO SEEKING STRONGER LINKS BETWEEN THEIR CUSTOM EDUCATIONAL EFFORTS AND THE PROBLEMS PARTICIPANTS FACE IN THEIR JOBS AT&T FOR INSTANCE HAS DONE JUST THAT IN NEW VERSIONS OF TWO LONGSTANDING INTERNAL EXECUTIVE PROGRAMS THAT IT UNVEILED LAST YEAR THE COMPANY ASKS PARTICIPANTS TO WRITE UP THE BIGGEST CHALLENGE THEY'RE DEALING WITH ON THE JOB AND THEN SCREENS PROSPECTIVE PROJECTS AHEAD OF TIME TO MAKE SURE THEY'RE MANAGEABLE PARTICIPANTS ARE DIVIDED INTO GROUPS OF SIX OR SEVEN PEOPLE THAT MEET OFTEN DURING THE TWOWEEK PROGRAMS TO CONSULT ON ONE ANOTHER'S PROJECTS THE TEAM PUSHES EACH PERSON TO REALLY DEFINE THE ISSUES SAYS DICK SETHI WHO DIRECTS ONE OF THE AT&T PROGRAMS BY THE TIME EACH PERSON LEAVES THEY'VE GOT AN ACTION PLAN THEY CAN GO BACK AND DO SOMETHING CUSTOM COMPANY PROGRAMS CARRY RISKS OF COURSE INSULAR BY NATURE THEY CAN REINFORCE A COMPANY'S WEAKNESSES AND LIMIT THE PERSPECTIVE PARTICIPANTS GAIN NOT SURPRISINGLY BUSINESS SCHOOLS THAT STILL RELY LARGELY ON OPENENROLLMENT EXECUTIVEEDUCATION COURSES ARE AMONG THE STRONGEST CRITICS OF CUSTOM PROGRAMS IT'S DANGEROUS TO DO EVERYTHING INTERNALLY SAYS ALAN F WHITE DIRECTOR OF EXECUTIVE PROGRAMS AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S SLOAN SCHOOL OF MANAGEMENT THESE DAYS WITH EVERYTHING CHANGING IT'S EVEN MORE IMPORTANT THAT PEOPLE BE GIVEN OPPORTUNITIES TO GET PERSPECTIVE ON AN ORGANIZATION AND THAT'S IMPOSSIBLE IF PEOPLE DON'T GET OUTSIDE THEIR ORGANIZATIONS ADOPTING THAT VIEW SOME COMPANIES ARE SHUNNING HEAVY INVESTMENT IN INTERNAL PROGRAMS WHILE MAINTAINING SEVERAL INTERNAL TRAINING COURSES HEWLETTPACKARD CO HAS INCREASED TO ROUGHLY 100 THE NUMBER OF EXECUTIVES IT SENDS ANNUALLY TO OPENENROLLMENT PROGRAMS UP FROM PERHAPS TWO DOZEN A FEW YEARS AGO THE COMPUTER MAKER WANTS TO BROADEN THEIR EXPOSURE TO THE WORLD OUTSIDE SILICON VALLEY HISTORICALLY WE DEALT WITH A PRETTY DEFINED SET OF CUSTOMERS THAT WE UNDERSTOOD PRETTY WELL PEOPLE JUST LIKE US SAYS BARBARA BAILL HEWLETTPACKARD'S MANAGER OF EXECUTIVE EDUCATION THAT'S NO LONGER TRUE WE NEED TO UNDERSTAND MORE OF WHAT'S GOING ON IN OTHER MARKETS EXECUTIVES SELECT COURSES FROM COMPANYAPPROVED LISTS OF ABOUT EIGHT GENERALMANAGEMENT PROGRAMS AND 40 FUNCTIONAL PROGRAMS OTHER COMPANIES ARE TAKING A BLENDED APPROACH PURSUING COURSES DESIGNED FOR A LIMITED NUMBER OF COMPANIES TYPICALLY NONCOMPETITORS THAT COVER SUBJECTS OF COMMON NEED BY INCLUDING OTHER COMPANIES IN THE MIX EXECUTIVES GET A FEEL FOR HOW OTHER FIRMS SOLVE SIMILAR PROBLEMS MOREOVER THESE CONSORTIUM PROGRAMS PERHAPS THE FASTEST GROWING NICHE IN THE MARKET MAY ALSO PROVE LESS EXPENSIVE THAN SINGLECOMPANY PROGRAMS SINCE PARTICIPATING COMPANIES TYPICALLY SHARE ANY UPFRONT DESIGN COSTS WARNERLAMBERT CO FOR ONE RECENTLY JOINED AT LEAST THREE GROUPS OF COMPANIES WORKING WITH BUSINESS SCHOOLS AND OTHER INSTITUTIONS ON SPECIAL CONSORTIUM EXECUTIVE PROGRAMS ONE ON GLOBAL PERSPECTIVES FOR US MANAGERS ORGANIZED WITH SEVEN OTHER COMPANIES AND THE AMERICAN GRADUATE SCHOOL OF INTERNATIONAL MANAGEMENT KNOWN AS THUNDERBIRD RAN FOR THE FIRST TIME IN MAY AT THUNDERBIRD IN GLENDALE ARIZ TWO OTHER 10COMPANY GROUPS ARE NOW PLANNING PROGRAMS ONE AT THE UNIVERSITY OF VIRGINIA'S DARDEN SCHOOL THE OTHER WITH THE TRIO OF THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL THE CENTER FOR CREATIVE LEADERSHIP IN GREENSBORO NC AND THE BROOKINGS INSTITUTE A WASHINGTON DC THINK TANK WE BELIEVED THAT SOME OF THE PUBLIC PROGRAMS WERE TOO GENERIC FOR OUR NEEDS SAYS PETER WENTWORTH WARNERLAMBERT'S DIRECTOR OF EXECUTIVE DEVELOPMENT WE WANTED RELATIONSHIPS WITH SPECIFIC SCHOOLS THAT WOULD HAVE A GREATER PAYOFF FOR US MR WENTWORTH SAYS WARNERLAMBERT HASN'T SHUNNED PUBLIC PROGRAMS AT THE BUSINESS SCHOOLS ALTOGETHER CERTAIN NARROW COURSES SUCH AS ONE AT THE UNIVERSITY OF SOUTHERN CALIFORNIA ON MEDICAL MARKETING FIT A VERY SPECIFIC NEED THAT CAN'T BE REPLICATED ON A COSTEFFECTIVE BASIS INHOUSE HE SAYS BUT FOR BROADER TOPICS THE CONSORTIA APPROACH IS PREFERABLE ALLOWING CONTENT TO BE FOCUSED ON THE SPECIFIC NEEDS OF THE PARTICIPATING COMPANIES FOR INSTANCE THE PROGRAM INCLUDING THE BROOKINGS INSTITUTE WILL FOCUS ON WORLDWIDE POLITICAL ISSUES AND GOVERNMENT PRACTICES BUT MAY INCLUDE OPPORTUNITIES FOR PARTICIPANTS FROM EACH COMPANY TO MEET SEPARATELY WITH LEGISLATORS AND LOBBYISTS WHOSE AGENDAS INCLUDE THEIR COMPANY'S CONCERNS IN ADDITION THE COMPANIES IN A CONSORTIUM GROUP CAN CREATE A SPECIFIC MIX OF PARTICIPANTS IN TERMS OF SEX RACE AND OTHER CRITERIA IN THE THUNDERBIRD CONSORTIA EACH OF THE EIGHT COMPANIES WHICH ALSO INCLUDED KELLOGG CO AND SCOTT PAPER CO SENT FIVE EXECUTIVES WITH THREE OF THE FIVE FROM ABROAD WE WILL BE DOING THAT EACH TIME THE PROGRAM IS RUN MR WENTWORTH SAYS GENERAL REVISION COMPANIES ARE ALSO DEMANDING MORE RELEVANCE AND GREATER PAYBACK FROM OPENENROLLMENT BUSINESSSCHOOL COURSES PARTICULARLY THEIR FLAGSHIP GENERALMANAGEMENT PROGRAMS ALREADY MANY SCHOOLS IN RECENT YEARS HAVE TRIMMED THE LENGTH OF THEIR GENERALMANAGEMENT PROGRAMS OR REPACKAGED THEM INTO SMALLER CHUNKS TO MAKE THEM MORE APPEALING TO EXECUTIVES WHO COULDN'T SPEND TWO OR THREE MONTHS AT A TIME OUT OF THE LOOP HARVARD'S TWO LONGEST PROGRAMS RUN 11 WEEKS STANFORD'S LONGEST NOW RUNS SEVEN DOWN FROM EIGHT MANY SCHOOLS ALSO ADDED A HOST OF MORE NARROWLY FOCUSED COURSES RUNNING A WEEK OR LESS NOW SCHOOLS ARE MAKING OTHER CHANGES TO BETTER SATISFY CLIENT COMPANIES THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL FOR INSTANCE IS INTERVIEWING MORE APPLICANTS TO CERTAIN PROGRAMS TO SCREEN OUT PARTICIPANTS WHOSE EXPERIENCE DOESN'T REALLY FIT THE INTENDED LEVEL OF A COURSE OR ITS OTHER PARTICIPANTS WE'D GET PEOPLE SAYING THIS COURSE WASN'T RIGHT FOR ME' SAYS ROBERT E MITTELSTAEDT JR WHARTON'S VICE DEAN AND DIRECTOR OF ITS EXECUTIVEEDUCATION DIVISION WE NEEDED TO MAKE SURE WE DON'T ALLOW THAT TO HAPPEN FOR INSTANCE FOR ITS COURSE ON SALESFORCE MANAGEMENT WHARTON NOW CONTACTS EVERY APPLICANT WHO DOESN'T HAVE A TITLE SUCH AS VICE PRESIDENT SALES THAT CLEARLY INDICATES THE PERSON ACTUALLY HAS RESPONSIBILITY FOR MANAGING A SALES FORCE THAT'S BECAUSE THE COURSE HAD BEEN ATTRACTING SALES PEOPLE WHO WEREN'T MANAGERS AND WHO WANTED TO TALK ABOUT SALES TACTICS WHICH WASN'T THE INTENDED TOPIC THE SALES PEOPLE WOULD BECOME DISRUPTIVE MR MITTELSTAEDT SAYS NOW SALES PEOPLE ARE TURNED AWAY FROM THE COURSE AMONG OTHER CHANGES THE BUSINESS SCHOOLS AT COLUMBIA UNIVERSITY IN NEW YORK AND THE UNIVERSITY OF MICHIGAN HAVE ADDED SOCALLED ACTION LEARNING ELEMENTS TO THEIR GENERALMANAGEMENT PROGRAMS INSTEAD OF REVAMPING AN ENTIRE PROGRAM TO BE COMPANYSPECIFIC THESE AND OTHER SCHOOLS SET ASIDE TIME TO CONSULT WITH PARTICIPANTS ABOUT THEIR PARTICULAR WORKPLACE PROBLEMS EXECUTIVES IN COLUMBIA'S MAIN EXECUTIVE PROGRAM DEVELOP WRITTEN ACTION PLANS TO USE BACK ON THE JOB WHARTON MIT AND MICHIGAN MEANWHILE HAVE DEVISED A WAY TO FOLLOW UP ON THEIR PROGRAMS AND AT THE SAME TIME PLANT SEEDS FOR REPEAT BUSINESS ALL THREE SCHOOLS HAVE LAUNCHED ASSOCIATIONS AND REUNIONS SPECIFICALLY FOR ALUMNI OF THEIR EXECUTIVE PROGRAMS WHARTON LAST YEAR RAN ITS FIRST REUNION FOR ALUMNI OF ITS ADVANCED MANAGEMENT PROGRAM THE THREEDAY SESSION TO BE REPEATED EVERY OTHER YEAR DREW ABOUT 100 EXECUTIVES TO LECTURES BY SEVERAL OF THE PROGRAM'S MOST POPULAR INSTRUCTORS PEOPLE GOT TO TALK ABOUT WHAT THEY'VE PUT INTO PRACTICE MR MITTELSTAEDT SAYS THAT HELPS TO REINFORCE THEIR LEARNING MIT RECENTLY LAUNCHED A THREEDAY SEMINAR OFFERED EACH FALL AND SPRING FOR ALUMNI OF SEVERAL OF ITS EXECUTIVE PROGRAMS THE SEMINARS INCLUDE LECTURES FROM MIT INSTRUCTORS TO UPDATE EXECUTIVES ON TOPICS THEY MAY HAVE COVERED DURING THEIR PROGRAMS ALUMNI ALSO DISCUSS THEIR EXPERIENCES IN IMPLEMENTING IDEAS THEY LEARNED WHILE AT MIT THE SCHOOL ALSO VISITS AND WRITES TO ITS ALUMNI TO INQUIRE ABOUT THEIR PROGRESS IN TURN MR WHITE SAYS EXECUTIVES OFTEN HIRE FACULTY MEMBERS THEY HAVE MET IN A PROGRAM TO CONSULT MORE CLOSELY WITH THEM AND THEIR COMPANIES WE FEEL THAT IT'S VERY IMPORTANT FOR US TO STAY IN TOUCH WITH GRADUATES AND COMPANIES IN EVERY WAY WE CAN TO TEST THE IMPACT OF WHAT THEY LEARNED IN OUR PROGRAM MR WHITE SAYS MEASURING THE PAYBACK FOR ALL THE INCREASED EFFORT HARD EVIDENCE OF THE EFFICACY OF EXECUTIVE EDUCATION IS STILL REMARKABLY THIN IF ANYONE HAS REALLY CRACKED THAT CODE I WANT TO HEAR ABOUT IT SAYS MR WENTWORTH OF WARNERLAMBERT CERTAIN THINGS ARE NOT QUANTIFIABLE IN MY MIND AND THIS IS ONE OF THEM MOST BUSINESS SCHOOLS AND COMPANIES CAN CITE TESTIMONIALS AND ANECDOTES ATTESTING TO PROBLEMS SOLVED LEADERSHIP SKILLS ENHANCED PROCESSES QUICKENED COSTS CUT PROMOTIONS GAINED BUT FEW HAVE SUCCESSFULLY TRACKED THE EFFECTS OF THEIR EFFORTS WITH GREATER PRECISION MOST HAVEN'T TRIED WHEN ONE IS TALKING ABOUT AN EXECUTIVE'S ABILITY TO LEAD IT IS STILL DIFFICULT TO QUANTIFY WITH ANY GREAT VALIDITY AND RELIABILITY SAYS CURT PLOTT PRESIDENT OF THE AMERICAN SOCIETY FOR TRAINING AND DEVELOPMENT IN MANY CASES COMPANIES ARE STILL MAKING INVESTMENTS BASED ON A LEAP OF FAITH INDUSTRY OFFICIALS SAY THAT PERHAPS THE BIGGEST BARRIER TO MEASURING EXECUTIVEEDUCATION EFFICACY IS ISOLATING ITS EFFECTS LET'S SAY SOMEBODY GOES TO A PROGRAM AND SAVES 10 MILLION ON SOME PROJECT MR WENTWORTH SAYS CAN YOU SAY THAT SAVINGS RESULTED FROM THE PROGRAM I CAN'T SAY I DON'T KNOW SOME COMPANIES HOWEVER ARE SEEKING TO ANSWER SUCH QUESTIONS AT&T FOR INSTANCE RECENTLY INTERVIEWED DOZENS OF EXECUTIVES WHO MONTHS EARLIER HAD ATTENDED NEW VERSIONS OF ITS INTERNAL MANAGEMENT PROGRAMS ASKING THEM AS WELL AS SOME OF THEIR PEERS SUPERVISORS AND SUBORDINATES WHETHER THEY HAD NOTICED ANY EFFECTS AMONG 74 PARTICIPANTS SURVEYED 635 REPORTED THAT THEY HAD BEEN ABLE TO RESOLVE THE BUSINESS CHALLENGE THEY HAD INTRODUCED AND 70 OF THE 70 NONPARTICIPANTS WHO WERE SURVEYED PERCEIVED THAT THE ATTENDEES HAD RESOLVED THE BUSINESS CHALLENGE IN QUESTION WE STILL NEED TO FIND OUT ABOUT THAT OTHER THIRD WHY THEY COULDN'T DO IT SAYS MR SETHI WE NEED TO UNDERSTAND HOW WE CAN INCREASE THAT TO 100 ARTHUR ANDERSEN & CO SC WHICH MAINTAINS A 13PERSON RESEARCH STAFF TO EVALUATE A WIDE RANGE OF INTERNAL EDUCATIONAL EFFORTS HAS GONE SO FAR AS TO PROVE THAT SOME OF ITS INVESTMENTS IN TECHNICAL AND SKILLS TRAINING HAVE PAID OFF IT COMPARED THE REVENUE OF ONE GROUP OF TAX PREPARERS WHO HAD TAKEN A NEW COURSE IN STATE AND LOCAL TAXATION WITH ANOTHER THAT HADN'T AFTER A YEAR THE PREPARERS WHO GOT TRAINING HAD GENERATED 10 MORE REVENUE WITHIN 15 MONTHS THE TRAINING HAD PAID FOR ITSELF CLEARLY JUSTIFYING EXPANDING ITS USE THE INCREASE WAS CONSISTENT FOR EVERY PERSON AND EVERY OFFICE SAYS DARRYL JINKERSON DIRECTOR OF EVALUATION SERVICES FOR THE ACCOUNTING AND CONSULTING GIANT BUT MEASURING THE BOTTOMLINE IMPACT OF EXECUTIVE TRAINING INCLUDING THE WEEKLONG PROGRAM ANDERSEN RUNS FOR SEVERAL HUNDRED OF ITS 2500 PARTNERS EACH YEAR IS MUCH HARDER MR JINKERSON SAYS NOT THAT EVALUATIONS AREN'T DONE SURVEYS OF PARTNERS WHO GO THROUGH THE PROGRAM CAN GAUGE THEIR SENSE ABOUT ITS VALUE AND MAY HELP DETERMINE COURSE CONTENT AND STRUCTURE FOR SUBSEQUENT PROGRAMS BUT MR JINKERSON QUESTIONS WHETHER IT'S EVEN FEASIBLE TO MEASURE WHETHER AN INCREASED AWARENESS OF WHAT'S GOING ON IN EUROPE FOR INSTANCE WILL TRANSLATE INTO DOLLARS FOR THE FIRM NOT ALL TRAINING LENDS ITSELF TO ORGANIZATIONAL IMPACT ANALYSIS HE SAYS BELL ATLANTIC CO PHILADELPHIA HASN'T BOILED ITS RESULTS DOWN TO NUMBERS BUT DEBORAH K HARRIS THE COMPANY'S LEADERSHIPDEVELOPMENT DIRECTOR CLAIMS THAT THE ACTION PLANS EMERGING FROM SEVERAL CUSTOM PROGRAMS IT RECENTLY HIRED WHARTON TO RUN ARE UNIVERSALLY SUCCESSFUL THOUGH THE SPECIFICS ARE PROPRIETARY SHE SAYS DOZENS OF BUSINESS PROCESSES HAVE BEEN IMPROVED OR QUICKENED IN ADDITION AFTER SURVEYING PARTICIPANTS AND OTHER EMPLOYEES AROUND THEM THE COMPANY HAS NOTED AT LEAST ONE MARKED IMPROVEMENT AMONG EVERY ALUMNUS OF ITS WHARTON PROGRAMS ON AN INDEX OF LEADERSHIP SKILLS AND ATTRIBUTES FROM ENTREPRENEURIAL VISION AND DRIVE TO CHARISMA AND COMPATIBILITY TAKE ANDREW D ANGELOZZI AN ENGINEERING MANAGER WITH BELL ATLANTIC'S OPERATIONS GROUP IN BURLINGTON NJ MR ANGELOZZI A 22YEAR BELL ATLANTIC VETERAN WHO TOOK ONE OF THE WHARTON PROGRAMS LAST YEAR SAYS HE LEARNED HOW TO BETTER BUILD A CONSENSUS AND APPRECIATE THE VIEWPOINTS OF OTHERS SKILLS THAT ALLOWED HIM TO PUT TOGETHER A TEAM THAT GETS AWAY FROM SQUABBLING AND BUREAUCRACY AND THAT REALLY WORKS COLLECTIVELY TO SOLVE PROBLEMS MR ANGELOZZI CITES IN PARTICULAR A SECTION OF THE COURSE ON BEHAVIORAL STYLES THAT HELPED HIM UNDERSTAND THE DIFFERENCE BETWEEN LEADING AND MANAGING AND THE FACT THAT IF I WANT TO GET PEOPLE TO COMMIT TO WHAT I WANT TO DO THEN I'VE GOT TO ENLIST THEM TO ENABLE THEM NOT JUST TELL THEM WHAT TO DO AMONG OTHER STEPS MR ANGELOZZI RECRUITED TO HIS TEAM A CLERK WHOM HE HADN'T PREVIOUSLY SOLICITED FOR ADVICE BUT WHO OBSERVES A LOT OF THINGS THAT ARE WRONG WITH THE WAY WE DO BUSINESS SOMETIMES PEOPLE LOWEST IN AN ORGANIZATION CAN REALLY HELP MANAGEMENT LEARN MR ANGELOZZI SAYS JUST LEARNING THAT AND ENABLING THAT CLERK WAS A REAL SUCCESS FOR ME EMERGING FROM ALL THIS HEIGHTENED ACTIVITY ONE EFFECT IS CLEAR THE EXECUTIVEEDUCATION MARKET IS GROWING MORE COMPETITIVE THE RESULT IS MORE CHOICE AND RISK FOR CORPORATE BUYERS OF TRAINING THIS REPORT SEVERAL TOP SCHOOLS THAT HAD LONG REFUSED TO RUN COURSES FOR INDIVIDUAL COMPANIES INCLUDING HARVARD AND STANFORD HAVE STARTED TO ENTER THAT BUSINESS CONCERNED ABOUT DECLINING DEMAND FOR OPENENROLLMENT COURSES OTHER PRESTIGIOUS SCHOOLS THAT HAVEN'T RUN NONDEGREE EXECUTIVE PROGRAMS OF ANY CONSEQUENCE SUCH AS THE UNIVERSITY OF CHICAGO AND WASHINGTON UNIVERSITY IN ST LOUIS SAY THEY MAY JUMP IN TOO HEDGING THEIR BETS AS INTEREST IN MBA PROGRAMS WEAKENS BUT AS THE SCHOOLS MOVE MORE AGGRESSIVELY INTO THE CUSTOMPROGRAM BUSINESS THEY JOIN A MARKET ALREADY CROWDED WITH THEIR OWN STAR ACADEMICS DOUBLING AS CONSULTANTS WITH CORPORATETRAINING FIRMS SUCH AS FORUM HARBRIDGE HOUSE OF NORTHBROOK ILL AND PERSONNEL DECISIONS INC OF MINNEAPOLIS AND WITH MANAGEMENT CONSULTANTS SUCH AS ERNST & YOUNG AND ANDERSEN CONSULTING WHICH ARE ADDING EXECUTIVE EDUCATION TO THEIR SERVICES COMPANIES WITH BIG INTERNAL TRAINING FACILITIES AND STAFFS INCLUDING ARTHUR ANDERSEN GTE CORP INTERNATIONAL BUSINESS MACHINES CORP EVEN WALT DISNEY CO ARE ALSO GETTING INTO THE BUSINESS MARKETING EVERYTHING FROM THEIR CONFERENCE CENTERS TO THEIR CUSTOMERSERVICE TECHNIQUES TO OTHER COMPANIES EAGER FOR EXPERTISE IT'S A PRETTY VOLATILE INDUSTRY RIGHT NOW SAYS MR READY WHO HEADS THE INDUSTRYUNIVERSITY RESEARCH GROUP THIS IS BECOMING A VERY CRAZY BUSINESS FOR BUSINESS SCHOOLS BECOMING MORE AGGRESSIVE MAY PROVE A MATTER OF SURVIVAL BEYOND THE PROFITS THAT EXECUTIVEEDUCATION PROGRAMS TYPICALLY GENERATE THE SCHOOLS CITE ADDITIONAL RETURNS FROM WORKING MORE CLOSELY WITH COMPANIES MORE REAL WORLD EXPOSURE AND CONSULTING ARRANGEMENTS FOR PROFESSORS FODDER FOR RESEARCH CASE STUDIES FOR USE IN MBA COURSES AND NETWORKS FOR CONTACTS AND JOBS FOR STUDENTS IF IT'S DONE RIGHT AND DONE WELL THEN THIS CAN BE AN EXTREMELY POSITIVE MOVE MR READY SAYS BUT THERE ARE RISKS HE ADDS AMONG THEM HE SAYS THE DANGER EXISTS BECAUSE OF THE LURE OF MONEY AND OF GETTING IN WITH A GOOD COMPANY THAT A UNIVERSITY WILL CHASE A PIECE OF BUSINESS FOR WHICH IT HAS LITTLE EXPERTISE THAT COULD LEAD AN INSTITUTION TO OVERPROMISE AND TO LOSE ITS WAY WHILE MR READY SAYS HE ISN'T AWARE OF THAT HAPPENING YET HE SAYS ALL IT'S GOING TO TAKE IS TWO OR THREE BUSINESS SCHOOLS DOING A PARTICULARLY BAD JOB TO RAISE QUESTIONS ABOUT ALL OF THEM 9309100180 930910 BREASTIMPLANT MAKERS PROPOSE BIG SETTLEMENT DOW CORNING OTHERS TO JOIN IN 475 BILLION PACKAGE FOR THOUSANDS OF SUITS BY SCOTT MCMURRAY AND THOMAS M BURTON STAFF REPORTERS OF THE WALL STREET JOURNAL DOW CORNING CORP AND OTHER SILICONE BREASTIMPLANT MAKERS PROPOSED A 475 BILLION SETTLEMENT OF THOUSANDS OF LAWSUITS FILED BY WOMEN WHO CLAIM TO HAVE BEEN HARMED BY THE IMPLANTS BUT FUNDS FROM THE PROPOSED SETTLEMENT AREN'T LIKELY TO BE AVAILABLE FOR IMPLANT RECIPIENTS UNTIL NEXT YEAR AT THE EARLIEST DOW CORNING SAID MANY DETAILS OF THE PROPOSAL REACHED AFTER MORE THAN SIX MONTHS OF NEGOTIATIONS BETWEEN THE MANUFACTURERS AND A TEAM OF PLAINTIFF LAWYERS STILL ARE BEING WORKED OUT AND CERTAIN ASPECTS SUCH AS PAYMENT RATES FOR SPECIFIC IMPLANTRELATED ILLNESSES ALREADY ARE BEING ASSAILED BY LAWYERS FOR HUNDREDS OF BREASTIMPLANT PLAINTIFFS IT WOULD BE VERY OPTIMISTIC TO ASSUME THAT A FINAL SETTLEMENT WILL BE REACHED BEFORE YEAR END SAID GARY E ANDERSON A DOW CORNING EXECUTIVE VICE PRESIDENT AS IN OTHER MASSINJURY LITIGATION THE MANUFACTURERS' STRATEGY IS TO SEEK A UNIVERSAL SETTLEMENT THAT COULD IMPOSE A CEILING ON THEIR TOTAL LIABILITY THE SOCALLED GLOBAL SETTLEMENT WOULD BE FUNDED OVER 30 YEARS BY DOW CORNING AND OTHER FORMER IMPLANT MAKERS AND INDUSTRY MEMBERS THE SETTLEMENT WOULD ESSENTIALLY ACT LIKE A HEALTH INSURANCE POLICY FOR WOMEN WITH IMPLANTS MR ANDERSON SAID WOMEN WITH IMPLANTS WILL HAVE THE RIGHT TO OPT OUT OF THE SETTLEMENT AND TAKE DOW CORNING OR OTHER IMPLANT MANUFACTURERS TO COURT DOW CORNING WAS FOR YEARS THE LEADING MANUFACTURER OF SILICONEGEL BREAST IMPLANTS IT ALSO SUPPLIED SILICONE GEL TO MUCH OF THE REST OF THE INDUSTRY FOR DECADES THE MIDLAND MICH COMPANY WHICH IS JOINTLY OWNED BY DOW CHEMICAL CO AND CORNING INC MADE MORE THAN 800000 IMPLANTS SINCE STARTING PRODUCTION IN 1964 AND HAS BEEN NAMED IN MORE THAN 6800 SUITS WALL STREET APPLAUDED THE PROPOSED SETTLEMENT AS LIFTING A CLOUD FROM THE FINANCIAL OUTLOOK OF THE TWO PARENT COMPANIES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CORNING CLOSED AT 3225 UP 1625 AND DOW CHEMICAL CLOSED AT 59 UP 125 CENTS MORE THAN ONE MILLION WOMEN ARE BELIEVED TO HAVE RECEIVED SILICONE BREAST IMPLANTS THE FOOD AND DRUG ADMINISTRATION ORDERED A MORATORIUM ON SILICONE BREAST IMPLANTS IN JANUARY 1992 FOLLOWING A MOUNTING NUMBER OF LAWSUITS AND COMPLAINTS OF HEALTH PROBLEMS TRIGGERED BY SILICONE LEAKING FROM BREAST IMPLANTS THE MORATORIUM WAS PARTIALLY LIFTED IN APRIL OF LAST YEAR TO ALLOW IMPLANTS FOR MEDICAL REASONS DOW CORNING SAID IT WAS TOO EARLY TO TELL HOW MUCH EACH OF THESE PARTICIPANTS INCLUDING DOW CORNING AND ITS INSURANCE CARRIERS WOULD CONTRIBUTE TO THIS FUND SOME INDUSTRY OFFICIALS AND SECURITIES ANALYSTS ESTIMATED THAT AFTER INSURANCE PAYMENTS THE CHARGE TO DOW CORNING COULD BE AS LITTLE AS 200 MILLION WHICH WOULD BE SPLIT BY ITS PARENT COMPANIES OTHER COMPANIES THAT COULD BECOME PART OF THE SETTLEMENT INCLUDE BRISTOLMYERS SQUIBB CO BAXTER INTERNATIONAL INC MINNESOTA MINING & MANUFACTURING CO AND GENERAL ELECTRIC CO SOME OF THESE COMPANIES MADE RAW SILICONE WHILE OTHERS PURCHASED FORMER IMPLANT MANUFACTURERS ONE OF THE COMPANIES BAXTER INTERNATIONAL SAID YESTERDAY IT HAS SET ASIDE 44 MILLION IN RESERVES TO COVER LIABILITY STEMMING FROM 2000 LAWSUITS AND 1000 OTHER CLAIMS PLAINTIFF LAWYERS DESCRIBE THE STILLCONFIDENTIAL SETTLEMENT PROPOSAL AS HIGHLY COMPLEX SETTING DOLLAR FIGURES THAT WOULD BE PAID OUT FOR VARIOUS ILLNESSES ASCRIBED TO SILICONE SAN FRANCISCO LAWYER ELIZABETH JOAN CABRASER ONE OF THE FIVE ATTORNEYS FROM THE PLAINTIFF STEERING COMMITTEE WHO NEGOTIATED THE PROPOSED SETTLEMENT SAID WOMEN'S COMPENSATION WOULD DEPEND ON THE NATURE AND SEVERITY OF ILLNESSES IN ADDITION ANY WOMAN WHO IS HEALTHY NOW BUT BECOMES ILL DURING THE NEXT 30 YEARS WILL QUALIFY FOR COMPENSATION UNDER THE PROPOSED SETTLEMENT WOMEN WITH VARIOUS AUTOIMMUNE ILLNESS SYMPTOMS COULD RECEIVE AS MUCH AS 200000 EACH WOMEN WITH DISABLING LUPUS OR SCLERODERMA COULD GET 2 MILLION VARIOUS RESEARCHERS IN RHEUMATIC DISEASES CONTEND SILICONE IMPLANTS CAUSE DISEASES THAT MIMIC TRADITIONAL AUTOIMMUNE ILLNESSES IN WHICH A PERSON'S IMMUNE SYSTEM ATTACKS ITS OWN TISSUE THESE ILLNESSES ATTACK JOINTS AND OTHER SUCH CONNECTIVE TISSUE OF THE HUMAN BODY MANUFACTURERS DISPUTE THIS ARGUING NO SUCH LINK HAS BEEN ESTABLISHED SOME LAWYERS FOR WOMEN WITH SILICONE BREAST IMPLANTS RAISED SERIOUS CONCERNS ABOUT THE ADEQUACY OF THE PROPOSED SETTLEMENT IF THAT OPPOSITION CONTINUES THE 475 BILLION FUND MIGHT NOT BE THE FINAL LIABILITY CEILING FOR IMPLANT MANUFACTURERS PLASTIC SURGEONS RAWMATERIAL SUPPLIERS FOR IMPLANTS AND OTHER HEALTHCARE PROVIDERS ALSO ARE PARTIES TO THE PROPOSED SETTLEMENT DOW CORNING SAID SALVADOR A LICCARDO A SAN JOSE CALIF LAWYER REPRESENTING 200 WOMEN CRITICIZED THE COMPENSATION PLAN AS A TERRIBLE AGREEMENT THAT PROVIDES INSUFFICIENT FUNDING TO ADEQUATELY COMPENSATE THE MOST SERIOUSLY INJURED VICTIMS MR LICCARDO IS A MEMBER OF THE STEERING COMMITTEE OF PLAINTIFF ATTORNEYS IN CHARGE OF SUPERVISING BREASTIMPLANT LITIGATION THAT WAS CONSOLIDATED IN BIRMINGHAM ALA FEDERAL DISTRICT COURT LAST YEAR IN MR LICCARDO'S VIEW WOMEN SUFFERING FROM SCLERODERMA A SEVERE AND POTENTIALLY LIFETHREATENING ILLNESS THAT CAN FEATURE HARDENING OF THE SKIN WON'T BE ADEQUATELY COMPENSATED UNDER THE PROPOSED SETTLEMENT THESE WOMEN WILL NOT RECEIVE ENOUGH TO COMPENSATE THEM FOR MEDICAL COSTS AND LOSS OF EARNINGS HE SAID ONE OF THE FIVE NEGOTIATORS FOR PLAINTIFF LAWYERS RALPH I KNOWLES JR OF ATLANTA SAID BENEFITS OF THE DEAL INCLUDE A 100 MILLION FUND FOR WOMEN TO GET IMPLANTS SURGICALLY REMOVED IN ADDITION HE SAID LARGER MANUFACTURERS EFFECTIVELY ARE SUBSIDIZING SMALLER MANUFACTURERS TO ENSURE THAT NO INJURED WOMEN WILL BE WITHOUT COMPENSATION BECAUSE OF A COMPANY'S WEAKER FINANCIAL CONDITION IN FEDERAL COURT IN BIRMINGHAM YESTERDAY WHERE THE GLOBAL SETTLEMENT WOULD HAVE TO BE APPROVED US DISTRICT JUDGE SAM C POINTER JR APPROVED A SEPARATE 26 MILLION SETTLEMENT WITH MENTOR CORP A RELATIVELY SMALL COMPANY THAT MAKES BREAST IMPLANTS THAT FUND WILL BECOME PART OF THE LARGER FUND IF THE OVERALL DEAL IS APPROVED SAID MR KNOWLES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MENTOR CLOSED AT 14 UP 1 9309100179 930910 BRITISH GAS POSTS NARROWER LOSS FOR 2ND QUARTER DATA REFLECT FIRM'S EFFORT TO EVOLVE FROM UTILITY INTO GLOBAL OIL CONCERN BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITISH GAS PLC REPORTED SECONDQUARTER RESULTS THAT DESPITE OVERALL LOSSES REFLECTED THE COMPANY'S EFFORT TO EVOLVE FROM A BRITISH UTILITY INTO A GLOBAL OIL AND GAS CONCERN THE LOSS OF 80 MILLION 1233 MILLION ON A CURRENTCOST BASIS WAS NARROWER THAN THE YEAREARLIER LOSS OF 86 MILLION REVENUE ROSE SLIGHTLY TO 1936 BILLION FROM 1924 BILLION THE COMPANY'S MAIN BUSINESS IS SUPPLYING GAS FOR THE BRITISH MARKET BUT THIS IS CHANGING YESTERDAY'S RESULTS SHOWED THE COMPANY'S EXPLORATION AND PRODUCTION OPERATIONS RECORDED AN OPERATING PROFIT OF 21 MILLION ON A CURRENTCOST BASIS IN THE QUARTER UP FROM 2 MILLION BRITISH GAS'S OVERSEAS GAS SUPPLY BUSINESS SHOWED OPERATING PROFIT OF 20 MILLION DOWN FROM 23 MILLION THESE FIGURES FOR THE MOMENT ESSENTIALLY REFLECT OPERATIONS IN CANADA WHERE THE COMPANY OWNS 85 OF CONSUMERS GAS THAT COUNTRY'S LARGEST GAS DISTRIBUTION COMPANY EARLIER THIS YEAR BRITISH GAS LED A CONSORTIUM THAT ACQUIRED A 70 STAKE IN ARGENTINA'S LARGEST AND NEWLY PRIVATIZED GAS DISTRIBUTOR DISTRIBUIDORA DE GAS METROPOLITANA BRITISH GAS HAS A 41 STAKE IN THE CONSORTIUM PROFITS FROM THIS OPERATION WILL START SHOWING UP IN TIME NOTED DAVID CLINE AN ENERGY ANALYST AT PARIBAS IN LONDON INDEED BRITISH GAS NOW IS ACTIVE IN 45 COUNTRIES FROM ANGOLA TO YEMEN ANALYSTS EXPECT A RISING SHARE OF THE COMPANY'S PROFITS WILL COME FROM THESE OPERATIONS AND FROM EXPLORATION AND PRODUCTION OPERATIONS IN THE NORTH SEA THE COMPANY'S GAS SUPPLY BUSINESS IN BRITAIN IS EXPECTED BY ANALYSTS TO SHOW A FLAT PROFILE THAT BUSINESS IS REGULATED A COMPLEX PRICE FORMULA FOR INSTANCE LIMITS WHAT BRITISH GAS CAN CHARGE HOUSEHOLD CUSTOMERS AT SWISS BANK CORP IN LONDON ANALYST ALAN MARSHALL RECKONS THAT IN 1993 MORE THAN 30 OF BRITISH GAS'S OPERATING PROFIT WILL DERIVE FROM ITS EXPLORATION AND PRODUCTION ACTIVITIES WHICH AREN'T REGULATED BY THE GOVERNMENT AND ITS GLOBAL GAS DIVISION UP FROM LESS THAN 10 TWO YEARS AGO HE SEES IT RISING TO 35 NEXT YEAR AND EXPECTS THE COMPANY WANTS TO SEE IT AT 40 OR HIGHER IN 1995 FOR THE FIRST HALF OF 1993 OPERATING PROFIT FROM EXPLORATION AND PRODUCTION AND OVERSEAS GAS SUPPLY BUSINESS WAS 317 MILLION A THIRD OF THE COMPANY'S TOTAL OPERATING PROFIT OF 952 MILLION EVEN BEFORE IT WAS PRIVATIZED IN 1986 BRITISH GAS WAS A SUCCESSFUL EXPLORER AND PRODUCER OF GAS IN THE NORTH SEA IN THE EARLY 1980S ITS UPSTREAM PRODUCING ASSETS AND EXPLORATION ACREAGE WAS PRIVATIZED TO FORM ENTERPRISE OIL NOTES MR MARSHALL WHO RECKONS BRITISH GAS HAS LEADINGEDGE TECHNOLOGY THAT WOULD HELP IT COMPETE WITH MAJOR ENERGY COMPANIES WORLDWIDE IN A PHONE INTERVIEW PHILIP ROGERSON BRITISH GAS'S FINANCE DIRECTOR CONFIRMED THE COMPANY'S INTEREST IN EXPLORATION AND PRODUCTION SPECIFICALLY BRITISH GAS IS FOCUSING ON THREE REGIONS ASIA/PACIFIC LATIN AMERICA AND EUROPE WHERE THE COMPANY IS INVOLVED IN MAJOR GAS AND OILFIELD DEVELOPMENT IN KAZAKHSTAN THE COMPANY WAS YESTERDAY AWAITING THE IMMINENT SIGNING OF A 300 MILLION PROJECT TO DEVELOP THE DOLPHIN GAS FIELD IN TRINIDAD IN PARTNERSHIP WITH TEXACO INC AT A NEWS CONFERENCE FOLLOWING THE ANNOUNCEMENT OF RESULTS CHIEF EXECUTIVE OFFICER CEDRIC BROWN SAID THERE ARE VERY SIGNIFICANT OPPORTUNITIES WORLDWIDE FOR GAS THIS MARKET IS EXPECTED TO GROW SIGNIFICANTLY IN THE NEXT DECADE BUT BRITISH GAS IS BEING HAMPERED BY UNCERTAINTY ON ITS HOME GROUND A REPORT BY THE UK MONOPOLIES AND MERGERS COMMISSION LAST MONTH RECOMMENDED THAT THE COMPANY'S MONOPOLY IN THE HOUSEHOLD SUPPLY AREA BE ABOLISHED BY 2002 AND THE COMPANY'S TRADING ARM BE SOLD BY 1997 TO ENCOURAGE COMPETITION THE GOVERNMENT HAS YET TO DECIDE ON A COURSE OF ACTION MR BROWN SAID YESTERDAY THAT WHAT WE REALLY NEED IS SOME OF THE UNCERTAINTY OF THE MCC ACTION REMOVED BEFORE BRITISH GAS CAN MAP OUT ITS EXPANSION STRATEGY WHATEVER THIS STRATEGY TURNS OUT TO BE ANALYSTS ALREADY ARE COUNTING ON A SHARP INCREASE IN BRITISH GAS'S OIL AND GAS PRODUCTION TO 410000 BARRELS OF OIL EQUIVALENT A DAY BY 1995 FROM 240000 BARRELS A DAY IN 1992 ACCORDING TO MR MARSHALL AT SWISS BANK 9309100178 930910 FINANCIER EMBRY SUED BY SEC SETTLES CASE OVER DISCLOSURE RULES NEW YORK FINANCIER TALTON R EMBRY WAS SUED BY THE SECURITIES AND EXCHANGE COMMISSION FOR ALLEGEDLY HIDING CONFLICTS OF INTEREST AND FAILING TO REPORT HUNDREDS OF PERSONAL SECURITIES TRANSACTIONS IN A SETTLEMENT ANNOUNCED SIMULTANEOUSLY WITH THE FILING MR EMBRY A COCHAIRMAN OF REVCO DS INC AND CHIEF EXECUTIVE OFFICER OF JUNKBOND INVESTMENT ADVISER MAGTEN ASSET MANAGEMENT CORP AGREED TO PAY 1 MILLION INTO A PROPOSED FUND ESTABLISHED FOR THE BENEFIT OF CERTAIN OF MAGTEN'S ADVISORY CLIENTS THE SEC SAID MR EMBRY A HIGHPROFILE BANKRUPTCY SPECULATOR ADMITTED NO WRONGDOING AS PART OF THE SETTLEMENT IN FEDERAL DISTRICT COURT IN MANHATTAN THE SEC HAD ALLEGED THAT IN 1985 LEVERAGEDBUYOUTFINANCINGS INVOLVING FARLEY/NORTHWEST INDUSTRIES INC AND P&C FOOD MARKETS INC MR EMBRY DEPRIVED HIS INVESTMENT CLIENTS OF OPPORTUNITIES TO BUY COMMON STOCK IN THOSE COMPANIES HE OFFERED HIS CLIENTS ONLY HIGHYIELD SECURITIES THAT WERE SOLD IN TANDEM WITH THE COMMON STOCK THE SEC ALLEGED THE SEC ALSO SAID IN THE CIVIL SUIT THAT MR EMBRY MADE TRANSACTIONS BETWEEN HIS PERSONAL ACCOUNT AND CLIENTS' ACCOUNTS WITHOUT THEIR KNOWLEDGE THE COMMISSION ALSO ALLEGED THAT HE REPORTED NONE OF HIS 769 PERSONAL SECURITIES TRANSACTIONS TO THE INVESTMENT ADVISER OF THREE INVESTMENT COMPANIES THAT HE MANAGED BETWEEN 1984 AND 1989 THE SEC SAID MR EMBRY WOULD HAVE GOTTEN A STIFFER PENALTY HAD HE NOT COOPERATED WITH THE AGENCY IN AN UNRELATED MATTER IN 1991 AS PART OF THE SETTLEMENT MR EMBRY WILL SET UP A SYSTEM FOR INDEPENDENTLY AUDITING HIS SECURITIES TRANSACTIONS AND THOSE OF MAGTEN IN NEW YORK WHICH ALSO WAS NAMED IN THE SUIT LEE S RICHARDS A NEW YORK ATTORNEY FOR MR EMBRY SAID HIS CLIENT WAS UNAWARE THAT HE HAD TO DISCLOSE THE TRANSACTIONS AND THE OPPORTUNITIES TO BUY COMMON STOCK AS SOON AS HE FOUND OUT HE VOLUNTARILY INSTITUTED DISCLOSURE POLICIES MR RICHARDS SAID 9309100177 930910 US MEXICAN OFFICIALS PLAN TO CREATE AIRPOLLUTION ZONE FOR BORDER RESIDENTS BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL US AND MEXICAN OFFICIALS EAGER TO SHOW PROGRESS ON CROSSBORDER ENVIRONMENTAL ISSUES ARE DRAFTING PLANS TO CREATE THE FIRST INTERNATIONAL AIRPOLLUTION CONTROL DISTRICT WITH AUTHORITY TO REGULATE GROWTH IN BOTH COUNTRIES THE COOPERATIVE EFFORT SUPPORTED BY MEXICO'S ENVIRONMENTAL MINISTER AND OFFICIALS AT BOTH THE US ENVIRONMENTAL PROTECTION AGENCY AND THE STATE DEPARTMENT IS INTENDED TO COVER SOME TWO MILLION RESIDENTS LIVING AROUND EL PASO TEXAS AND THE FASTGROWING CITY OF JUAREZ ON THE OTHER SIDE OF THE BORDER AT THE BEGINNING THE PROPOSED DISTRICT WOULD FOCUS ON JOINTPOLLUTION MONITORING AND VOLUNTARY CONTROL PROGRAMS BUT DOWN THE ROAD PROPONENTS WANT THE DISTRICT TO HAVE POWER TO ESTABLISH AND ENFORCE ITS OWN EMISSION STANDARDS AS WELL AS TO DETERMINE HOW AND WHERE CONSTRUCTION CAN TAKE PLACE SUCH AUTHORITY GOES BEYOND POLLUTIONCONTROL INITIATIVES ON THE USCANADIAN BORDER THE PLAN WHICH MAY GET FORMAL APPROVAL FROM REPRESENTATIVES OF THE TWO COUNTRIES IN THE NEXT FEW WEEKS IS CONSISTENT WITH THE WORK ALREADY UNDER WAY AND IS A SIGNIFICANT STEP FORWARD TO REDUCE POLLUTION ALONG THE BORDER ACCORDING TO STAN MEIBURG THE EPA'S TOP AIRPOLLUTION OFFICIAL IN THE REGION EVENTUALLY THE PLAN ENVISIONS EVENTUAL TRADING OF EMISSION CREDITS ACROSS AN INTERNATIONAL BOUNDARY FOR THE FIRST TIME WHILE THE DISCUSSIONS AREN'T DIRECTLY LINKED TO THE PENDING NORTH AMERICAN FREE TRADE AGREEMENT BOTH GOVERNMENTS HOPE TO SEIZE ON THE IDEA AS A WAY OF DEFUSING THE CRITICISM NAFTA HAS FACED FOR FAILING TO GO FAR ENOUGH TO CONTROL ANTICIPATED POLLUTION CREATION OF SUCH A DISTRICT DOESN'T REQUIRE CONGRESSIONAL APPROVAL BECAUSE THE TERMS COULD BE INCORPORATED IN AN ANNEX TO AN EXISTING TREATY COVERING CROSSBORDER ENVIRONMENTAL MATTERS THE DRIVING FORCE BEHIND THE CONCEPT HAS BEEN THE ENVIRONMENTAL DEFENSE FUND A PROMINENT ANTIPOLLUTION GROUP THAT HAS GENERATED BUSINESS SUPPORT FOR THE PLAN AND CLAIMS THAT THE DISTRICT COULD BE IN OPERATION WITHIN TWO YEARS THE TWO CITIES SIMPLY CAN'T DEAL WITH THE SEVERE POLLUTION PROBLEMS THEY HAVE UNLESS THEY ACT TOGETHER SAID PETER EMERSON A SENIOR ECONOMIST AT THE ANTIPOLLUTION ORGANIZATION MARIO AGUILLAR A TOP ENVIRONMENTAL OFFICIAL IN MEXICO'S EMBASSY IN WASHINGTON SAID THAT HIS GOVERNMENT HAS BEEN VERY SUPPORTIVE OF THE EFFORT AND IS NOW WORKING OUT THE DETAILS OF HOW AN INTERNATIONAL POLLUTIONCONTROL DISTRICT CAN BE SET UP THE EL PASOJUAREZ AREA IS ONE OF THE MOST DENSELY POPULATED SECTIONS OF THE BORDER AND TRANSBOUNDARY POLLUTION IS ESPECIALLY IMPORTANT THERE BECAUSE POLLUTANTS ARE TRAPPED IN A VALLEY THAT EXTENDS INTO BOTH COUNTRIES THE PROPOSED DISTRICT HAS BEEN EMBRACED BY LOCAL BUSINESSES AND STATE ENVIRONMENTAL REGULATORS AS A WAY TO DEVELOP MORE FLEXIBLE AND COSTEFFECTIVE SOLUTIONS TO IMPROVE AIR QUALITY COMPANIES PLANNING TO EXPAND PLANTS OR OTHER FACILITIES IN EL PASO FOR EXAMPLE COULD OFFSET THEIR INCREASED EMISSIONS BY INVESTING IN STREET PAVING PARKANDRIDE LOTS OR OTHER PROJECTS TO REDUCE POLLUTION IN JUAREZ JUST A FEW WEEKS AGO TEXAS GOV ANN RICHARDS WROTE PRESIDENT CLINTON A LETTER STRONGLY ENDORSING THE CONCEPT AS THE BEST WAY TO MEET AIRQUALITY GOALS IN A TIMELY AND EFFICIENT MANNER CREATION OF SUCH A DISTRICT WILL EXPAND OUR OPTIONS FOR ACHIEVING POLLUTION REDUCTIONS AND LOWER THE COST OF SUCH STEPS THE GOVERNOR SAID NO MATTER HOW STRINGENT POLLUTION CONTROLS TEXAS WILL REQUIRE IN THE FUTURE GOV RICHARDS HAS TOLD THE WHITE HOUSE THEY MAY HAVE NO APPRECIABLE IMPACT ON AIR QUALITY AROUND EL PASO BECAUSE OF INCREASING POLLUTION DRIFTING FROM THE MEXICAN SIDE OF THE BORDER STATE OFFICIALS SAID THAT THE ADMINISTRATION'S INFORMAL RESPONSE HAS BEEN POSITIVE WITH TRADE REPRESENTATIVE MICKEY KANTOR EXPRESSING SUPPORT FOR THE GENERAL CONCEPT AND OTHER WHITE HOUSE OFFICIALS CONSIDERING LANGUAGE IN THE NAFTA SIDE AGREEMENTS TO PAVE THE WAY FOR THE NEW ZONE IN ADDITION TO SUPPORTING THE PROPOSED DISTRICT EPA OFFICIALS ALSO ARE SEARCHING FOR WAYS TO HELP US CONCERNS SELL POLLUTIONCONTROL EQUIPMENT TO MEXICO AND ENCOURAGE THE MEXICAN GOVERNMENT TO RELY MORE HEAVILY ON CLEANBURNING NATURAL GAS TO FUEL ITS INDUSTRIALIZATION DRIVE 9309100176 930910 RETAILING NEWER TEEN FASHIONS TRIP UP HIPHOP BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEVENTEENYEAROLD MINGO ROBERTS STANDING IN LINE TO BUY A COOKIE AT A SOUTH SIDE MALL HERE LOOKS HIP IN HIS RALPH LAUREN POLO SHIRT AND PLAIN JEANS WHAT HE NO LONGER LOOKS IS HIPHOP THE WASHINGTON DC TEENAGER HAS DISCARDED THE BAGGY CUTS AND BRIGHT COLORS THAT DEFINED THE YOUTH FASHION SCENE JUST A YEAR AGO BUT ONLY FOR A MINUTE ASSERTS MINGO HIS FRIEND BEN WHITT IS ALSO MOVING AWAY FROM LAST YEAR'S LOOK OF URBAN COOLNESS WEARING A NOTSOBAGGY TSHIRT WITH LOOSEFITTING RED DENIM SHORT PANTS BUT NOT AS LOOSEFITTING AS HE MIGHT HAVE WORN LAST YEAR THAT HANG BENEATH HIS KNEES BUT DON'T HANG QUITE AS LOW AS HIPHOP GARB PEOPLE PRETTY MUCH WEAR WHAT THEY WANT TO WEAR THESE DAYS SAYS THE 17YEAROLD CHICAGOAN THAT IS BAD NEWS FOR SEVERAL RETAILERS THAT HAVE GAMBLED HEAVILY ON HIPHOP NOTABLY MERRYGOROUND ENTERPRISES INC BASED IN JOPPA MD TOTAL SALES IN MERRYGOROUND STORES OPEN AT LEAST A YEAR HAVE FALLEN FOR SEVEN CONSECUTIVE MONTHS AND THROUGH AUGUST WERE 86 BELOW YEARAGO LEVELS THAT PRODUCED A SECONDQUARTER NET LOSS OF 25 MILLION OR FIVE CENTS A SHARE COMPARED WITH A GAIN OF 64 MILLION OR 12 CENTS A SHARE IN THE PRIOR YEAR EDISON BROTHERS STORES INC OF ST LOUIS FARING ONLY SLIGHTLY BETTER SUFFERED AN OVERALL SALES DROP OF 2 THROUGH THE FIRST SEVEN MONTHS OF ITS FISCAL YEAR EDISON BROTHERS DOESN'T RELEASE SAMESTORE SALES RESULTS THE COMPANY'S SECONDQUARTER EARNINGS PLUMMETED 75 TO 32 MILLION OR 15 CENTS A SHARE FROM 127 MILLION OR 59 CENTS A SHARE A YEAR EARLIER THE CLEAREST SIGNAL THAT HIPHOP IS FADING EMERGES FROM THE LATEST FASHIONS CREATED BY THREADS 4 LIFE THE COMMERCE CALIF CONCERN WHOSE CROSS COLOURS CLOTHING DEFINED THE HIPHOP LOOK OVER THE LAST TWO YEARS CROSS COLOURS' LATEST LINES SUBSTITUTE EARTH TONES FOR THE LINE'S ERSTWHILE BRIGHT RED GREEN AND YELLOW PALETTE IT SUPPLANTS OVERSIZE TSHIRTS WITH BUTTONDOWN OXFORD SHIRTS AND BAGGY PANTS WITH TROUSERS THAT HAVE A MORE FITTED LOOK THAN LAST YEAR'S OFFERINGS IN MR JONES'S VIEW HIPHOP ISN'T DYING IT'S EVOLVING WHICH IS ANOTHER WAY OF SAYING THAT OTHER FASHIONS ARE EMERGING CLOTHES THAT MAKE YOU LOOK LIKE YOU OPERATE A CEMENT MIXER BIB OVERALLS AND WORK BOOTS ARE AMONG THE NEWER TRENDS THAT HAVE EVOLVED FROM THE HIPHOP LOOK RECENTLY COMEDIAN EDDIE MURPHY APPEARED AS A GUEST DEEJAY ON MTV IN OVERALLS AND TALKSHOW HOST ARSENIO HALL WORE WORK CLOTHING TO HIS JOB OTHER FASHION TRENDS SUCH AS GRUNGE AND RAVE HAVE SIPHONED OFF INTEREST IN HIPHOP TOO GRUNGE IS THE SEATTLE ROCKMUSICSCENEINSPIRED GENRE FEATURING OLD FLANNELS AND DINGY JEANS RAVE HAS HIPHOP'S OVERSIZE SILHOUETTES BUT INCLUDES MILDLY CONTRASTING STRIPES AND SOFT PRINTS CALL IT HIPHOP FOR SURFERS ONE OF THE CASUALTIES OF THE HIPHOP FLOP HAS BEEN FILM DIRECTOR SPIKE LEE'S EFFORT TO FIELD A CLOTHING LINE AFTER A WIDELY PUBLICIZED OPENING LAST FALL IN SUCH STORES AS MACY'S AND SOME DAYTON HUDSON CORP DEPARTMENT STORES THE LINE HAS ALL BUT VANISHED DAYTON HUDSON OFFICIALS SAY THEY STOPPED CARRYING THE LINE AFTER IT FAILED TO GENERATE INTEREST AMONG YOUTH MR LEE DECLINES TO COMMENT MANY FASHION WATCHERS SAY THE BIGGEST OBSTACLE TO SELLING A LOT OF ANYTHING THIS YEAR IS THAT THE CURRENT PERIOD LACKS A SINGLE CLOTHING ITEM FOR KIDS WHO SPEND 75 BILLION ANNUALLY ON CLOTHES TO ORGANIZE THEIR WARDROBES AROUND IN THE MID1980S MICHAEL JACKSON'S LEATHER JACKET SPURRED SALES OF SIMILAR DUDS AND LATER THAT DECADE THE SPORTS JACKETS WORN BY ACTOR DON JOHNSON ON THE MIAMI VICE TELEVISION SERIES PROVIDED CLEAR FASHION CUES FASHION EXPERTS BELIEVE THE CURRENT GENERATION OF YOUNG ADULTS SIMPLY WANT TO THINK FOR THEMSELVES UNLIKE THE BABY BOOMERS WHO PRECEDED THEM TODAY'S YOUTH DOESN'T WANT TO BLEND IN EVEN WITH CONTEMPORARIES INDIVIDUALITY IS EXTREMELY IMPORTANT TO THESE KIDS SAYS PEGGY MONTGOMERY A PRINCIPAL AT CAROL FARMER ASSOCIATES A BOCA RATON FLA CONSUMERCONSULTING CONCERN EVERYONE SEEMS TO BE GOING IN THEIR OWN DIRECTION AGREES FLINT FINLINSON MARKETING DIRECTOR FOR EDISON BROTHERS' OAK TREE STORES A CHAIN OF 304 STORES THAT SELLS DRESSY CLOTHING TO YOUNG MEN SUCH ATTITUDES MAKE IT DIFFICULT FOR STORES LIKE MERRYGOROUND AND OAK TREE WHICH DO WELL WHEN THERE IS A SINGLE FASHION TREND AND THEY HAVE IT FIRST THE RETAILERS' PREDICAMENT HAS SENT STOCK ANALYSTS SCURRYING TO CUT THEIR EARNINGS ESTIMATES FOR MERRYGOROUND AND EDISON BROTHERS IT'S A MISERABLE ENVIRONMENT FOR YOUNG MEN'S TRENDY APPAREL SAYS ROBERT BUCHANAN AN ANALYST WITH ALEX BROWN & SONS IN BALTIMORE MR BUCHANAN HAS TWICE LOWERED HIS EARNINGS FORECAST FOR BOTH COMPANIES THIS YEAR MERRYGOROUND DECLINES TO COMMENT BUT THE COMPANY HAS TOLD ANALYSTS THAT ITS SALES SLIDE ALSO IS DUE TO GROWING CONSUMER PREFERENCE FOR ITS PRIVATELABEL MERCHANDISE WHICH COSTS LESS THAN ITS BRANDED APPAREL EDISON BROTHERS APPEARS TO BE DETERMINED TO RIDE OUT THE STORM AMONG OTHER THINGS THE COMPANY PLANS TO PARE INVENTORIES BY 10 TO 15 BY NOVEMBER AND HAS REDUCED CERTAIN PURCHASING LEVELS BY 30 IT ALSO IS EXPERIMENTING WITH NEW LOOKS BUT NOT IN A MAJOR WAY EDISON BROTHERS EXECUTIVES BELIEVE A FASHION RESURGENCE IS NEAR BUT THEY AREN'T CERTAIN WHAT FORM IT WILL TAKE THE CUSTOMER HASN'T DECIDED ON WHAT FASHION TO BUY SAYS MARTIN SNEIDER EDISON BROTHERS' PRESIDENT LIKE ALL FASHION FADS HIPHOP HAS SUCCUMBED TO AGE AND SUCCESS SAYS RON ROBINSON OWNER OF FRED SEGAL MELROSE A TRENDY LOS ANGELES BOUTIQUE RETAILERS JUMPED ON THE STYLE WITH SUCH VIGOR LAST YEAR THAT IT BECAME MAINSTREAM HE CONTENDS WHEN YOUR FRIENDS ARE WEARING IT AND EVERYBODY IS WEARING IT THEN YOU'RE NOT DIFFERENT ANYMORE MR ROBINSON SAYS ADDING YOU'RE NOT EXPRESSIVE ANYMORE YOU'RE NOT HIP 9309100175 930910 TRAINING R&D ARE CALLED KEY TO NEW EC JOBS PREVIEW OF WHITE PAPER' ALSO URGES FLEXIBILITY IN WAGES LABOR FORCE BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS IN A PREVIEW OF THE EUROPEAN COMMUNITY'S BLUEPRINT ON JOB CREATION SENIOR EC COMMISSION OFFICIALS SAID THEY ARE FOCUSING ON TRAINING PROGRAMS AND RESEARCH AS TWO CRUCIAL AREAS FOR LONGTERM GROWTH THE COMMUNITY GETS MEAGER RESULTS FROM ITS RESEARCH AND DEVELOPMENT SPENDING THE OFFICIALS TOLD A CONFERENCE AT THE CENTER FOR EUROPEAN POLICY STUDIES AND THE EC HAS FAILED TO EFFECTIVELY RETRAIN WORKERS TO ADAPT TO A CHANGING LABOR MARKET ONEROUS NONWAGE COSTS BORNE BY EMPLOYERS ESPECIALLY FOR LOWSKILLED WORKERS IS ANOTHER AREA THE COMMISSION IS EXPLORING ALONG WITH WAYS TO IMPROVE LABOR FLEXIBILITY BUT OFFICIALS FROM THE COMMISSION AND THE PARISBASED ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT EMPHASIZED THAT LABORMARKET DEREGULATION IN VOGUE WITHIN EC CIRCLES ISN'T A SOLUTION IN ITSELF BECAUSE IT CAN LEAD TO RISING WAGE INEQUALITY AND ITS ATTENDANT SOCIAL COSTS A REPORT BY THE OECD THE ECONOMIC FORUM FOR THE WORLD'S LEADING INDUSTRIAL COUNTRIES CALLS FOR GREATER WAGE FLEXIBILITY COUPLED WITH COMPREHENSIVE TRAINING SCHEMES IN ORDER TO ENCOURAGE PEOPLE TO MOVE TO HIGHERPAID JOBS THE OFFICIALS PAINTED A SOBERING PICTURE MOREOVER OF THE EC'S PROSPECTS OF RAPIDLY EMERGING FROM ITS ECONOMIC MALAISE THEY WARNED THAT PEOPLE SHOULD NOT EXPECT ANY MIRACLE CURES FROM THE WHITE PAPER ON JOB CREATION THE PANEL IS PREPARING FOR DECEMBER'S COMMUNITY SUMMIT IN BRUSSELS WE MUST NOT GIVE THE IMPRESSION THAT THERE'S A SIMPLE ANSWER OR A QUICK FIX SAID CHRIS BOYD A TOP ADVISER TO COMMISSION PRESIDENT JACQUES DELORS IT'S TAKEN MANY YEARS TO DIG THE HOLE WE'RE IN AND IT'S GOING TO TAKE A LONG TIME TO DIG OUT ANOTHER OFFICIAL INVOLVED IN THE WHITE PAPER SAID THERE IS ONLY SO MUCH THAT CAN BE DONE AT THE EC LEVEL BECAUSE ECONOMIC POLICY LARGELY IS SET BY NATIONAL CAPITALS WE CAN PROVIDE A FRAMEWORK FOR MAKING NATIONAL POLICIES MORE EFFECTIVE SAID DAVID O'SULLIVAN A TOP AIDE TO THE EC SOCIAL AFFAIRS COMMISSIONER PADRAIG FLYNN BUT THE HUGE DIVERSITY IN NATIONAL POLICIES AND CIRCUMSTANCES RESULTS IN FEW AREAS IN WHICH IT IS APPROPRIATE TO SAY EUROPE SHOULD THE EC'S UNEMPLOYMENT RATE IS PROJECTED TO HIT 12 NEXT YEAR MEANING 20 MILLION PEOPLE OUT OF WORK THE COMMUNITY IS EXPECTED TO HAVE ECONOMIC GROWTH OF ONLY 125 IN 1994 FAR BELOW THE 25 TO 3 NEEDED TO REDUCE UNEMPLOYMENT OFFICIALS ADDRESSING THE BRUSSELS CONFERENCE STRESSED HOWEVER THAT THE EC'S UNEMPLOYMENT WOES RESULT LARGELY FROM DEEPSEATED STRUCTURAL PROBLEMS THAT DEFY SIMPLE SOLUTIONS ONCE THE INCIDENCE OF LONGTERM EMPLOYMENT INCREASES IN EC COUNTRIES THERE IS LITTLE TENDENCY FOR IT TO DECLINE ONCE THE BUSINESS CYCLE IMPROVES SAID JOHN MARTIN DEPUTY DIRECTOR OF THE OECD'S LABOR MARKET UNIT MR BOYD OUTLINED RATHER FRIGHTENING STATISTICS ON THE COMMUNITY'S ECONOMIC CONDITION THE EC'S VOLUME SHARE OF WORLD GOODS HAS DECLINED FROM 235 AT THE BEGINNING OF THE 1980S TO 18 COMPARED WITH A US INCREASE OF 15 TO 19 DURING THE PERIOD THE EC IS STRONGEST IN SLOWGROWTH AREAS SUCH AS METAL GOODS AND TEXTILES BUT WEAKER IN HIGHGROWTH SECTORS LIKE ELECTRONICS AND EC PRODUCTS FARE BEST IN THE WORLD'S LOWGROWTH REGIONS ALTHOUGH THE COMMUNITY ACCOUNTS FOR 28 OF RESEARCH AND DEVELOPMENT SPENDING AMONG THE 24 OECD COUNTRIES IT REGISTERS ONLY 18 OF PATENTS FILED IN THE US WHICH IS THE BENCHMARK GIVEN THAT MOST INVENTIONS ARE REGISTERED IN THE US JAPAN'S SPENDING IS 16 OF THE OECD TOTAL BUT IT ACCOUNTS FOR 21 OF US PATENT REGISTRATIONS JAPAN SAYS MR BOYD MANAGES WITH MUCH LESS R&D TO ACHIEVE GREATER RESULTS THE COMMISSION'S WHITE PAPER WAS ORDERED BY EC LEADERS AT THEIR LAST SUMMIT HELD IN JUNE IN COPENHAGEN MEMBER STATES WERE INVITED TO SUBMIT IDEAS TO THE COMMISSION BUT CONTRIBUTIONS FROM BRITAIN DENMARK PORTUGAL AND GERMANY HAVE BROKEN LITTLE NEW GROUND WHAT STRIKES ME ONE EC OFFICIAL SAID IS THEIR LACK OF ANALYSIS THEY SEEM TO HAVE BEEN WRITTEN BY POLITICIANS THERE'S A LOT OF ASSERTIONS ON WHAT WE OUGHT TO DO WITHOUT ANY REAL JUSTIFICATIONS OF HOW THESE POLICY PRESCRIPTIONS ARE GOING TO HELP US 9309100174 930910 CREDIT MARKETS BOND PRICES DECLINE ON WAVE OF PROFITTAKING YIELD ON 30YEAR TREASURY ISSUE JUMPS TO 596 BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AFTER PLUNGING INTO THE BOND MARKET WITH LONGTERM RATES AT THEIR LOWEST LEVELS IN OVER 25 YEARS SOME INVESTORS ARE STARTING TO HAVE SECOND THOUGHTS WHEN THOSE INVESTORS RUSHED TO SELL THEIR BONDS YESTERDAY THEY PUSHED 30YEAR TREASURY BOND PRICES DOWN NEARLY 1 1/2 POINTS OR NEARLY 15 FOR A BOND WITH 1000 FACE VALUE TO 103 31/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE JUMPED TO 596 FROM 586 ON WEDNESDAY THE PRICE OF THE 10YEAR NOTE DROPPED A POINT TO 103 AS ITS YIELD CLIMBED TO 535 FROM 522 THERE WAS LITTLE IN THE WAY OF SIGNIFICANT BAD NEWS THAT COULD HAVE CAUSED SUCH A LARGE PLUNGE OTHER THAN INVESTOR NERVOUSNESS THAT YIELDS HAD DROPPED TOO FAR TOO FAST ACCORDING TO BOND TRADERS BOND PLAYERS WERE QUICK TO CALL THE DROP A CORRECTION OR A NECESSARY ADJUSTMENT OCCASIONALLY MADE BY THE MARKET TO MAKE UP FOR A RAPID FALL IN RATES BUT THE FACT THAT RATES ROSE PRECIPITOUSLY FOR LITTLE REASON OTHER THAN NERVOUSNESS SHOWS JUST HOW SENSITIVE THE BOND MARKET IS THESE DAYS THE MARKET HAS GONE A LONG WAY IN A SHORT PERIOD OF TIME WITH VERY FEW DOWN SESSIONS SAID STEVEN WOOD DIRECTOR OF FINANCIAL MARKET RESEARCH AT BANK OF AMERICA THE MARKET WAS RIPE FOR A CORRECTION AND BINGO IT SHOWED UP TODAY THE SELLING BEGAN DURING FAR EAST TRADING IN PART DUE TO REPORTS THAT A HOUSE WAYS AND MEANS SUBCOMMITTEE WILL BE CONSIDERING A PROPOSAL TO REIMPOSE A 30 WITHHOLDING TAX ON INTEREST RECEIVED BY FOREIGNERS ON CERTAIN PORTFOLIO INVESTMENTS INCLUDING US TREASURY SECURITIES MARKETWATCHERS CAUTIONED THAT SUCH A MEASURE HAS BEEN PROPOSED NUMEROUS TIMES IN THE PAST AND EACH TIME HASN'T COME CLOSE TO BEING ENACTED INTO LAW AND THE WITHHOLDING TAX PROPOSAL IS WIDELY EXPECTED TO FAIL AGAIN THIS YEAR BUT CONFUSION OVER THE PROPOSAL GENERATED ENOUGH UNCERTAINTY TO SPARK SELLING THAT CONTINUED THROUGH THE EUROPEAN TRADING DAY AND ACCELERATED ONCE NORTH AMERICAN ACTIVITY GOT UNDER WAY HELPING FUEL THE BURST OF PROFITTAKING IN THE US WAS STRONGERTHANEXPECTED ECONOMIC NEWS TRADERS SAID THE LABOR DEPARTMENT REPORTED INITIAL UNEMPLOYMENT CLAIMS FELL 10000 DURING THE WEEK ENDED SEPT 4 TO 316000 MOST ECONOMISTS HAD BEEN EXPECTING A RISE IN CLAIMS SOME MARKETWATCHERS DOWNPLAYED THE SIGNIFICANCE OF THE CLAIMS DATA AND TAX TALK ARGUING THAT INVESTORS WERE LOOKING FOR JUST ABOUT ANY REASON TO CASH IN THEIR CHIPS THE FACT THAT THE MARKET WAS SO VULNERABLE TO THOSE TWO FACTORS SHOWS THAT PEOPLE WERE LOOKING FOR AN EXCUSE TO JUSTIFY A CORRECTION SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS PEOPLE WERE A BIT SCARED AFTER BUYING LAST FRIDAY WHEN 30YEAR BOND YIELDS DIPPED BELOW 6 SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP BUT THIS IS NOT THE END OF THE BOND MARKET RALLY HE ADDED EVEN WITH THE SIZABLE LOSSES PARTICIPANTS SAID THE DECLINES PALE IN COMPARISON WITH THE SCOPE OF THE MARKET'S RALLY WE GOT A SUBSTANTIAL BACKUP BUT WHEN YOU COMPARE IT WITH WHAT HAS HAPPENED IN RECENT WEEKS IT'S A MODEST CORRECTION SAID ROGER EARLY A SENIOR VICE PRESIDENT AT FEDERATED INVESTORS IT WAS UGLY BUT IT DOESN'T NECESSARILY MEAN IT WAS THE BEGINNING OF A TREND SAID MR KARYDAKIS OF FIRST CHICAGO INVESTORS ALSO ARE NERVOUS ABOUT AN INFLATION REPORT THAT IS SLATED TO BE RELEASED TODAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT SAID THE PRODUCER PRICE INDEX WHICH IS A MEASURE OF WHOLESALE PRICES ROSE 02 IN AUGUST COMPARED WITH A DROP OF 02 IN JULY BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN ONE OF THE REASONS THE BOND MARKET RALLY HAS CONTINUED IS BECAUSE MANY INVESTORS HAVE BECOME CONVINCED INFLATION WILL REMAIN SUBDUED BUT SOME BOND MARKET ANALYSTS SAY INVESTOR EXPECTATIONS MAY BE TOO OPTIMISTIC MOST OF THE GOOD NEWS ON INFLATION ALREADY HAS BEEN PRICED INTO THE BOND MARKET AND EVEN IF TOMORROW'S NUMBER IS SOMEWHAT FRIENDLY THE UPSIDE IS RELATIVELY LIMITED COMMENTED JACK MCINTYRE A SENIOR FIXEDINCOME STRATEGIST IN A REPORT FROM TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES HOWEVER IF THE DATA ARE NEUTRAL TO HIGHER THAN EXPECTED A MAJOR LEAGUE SELLOFF WILL OCCUR WITH THE LATEST RALLY HAVING TAKEN THE YIELD ON THE 30YEAR BOND TO A LOW OF 586 FROM 670 IN MIDJULY AND MORE THAN 7 IN MAY YIELDS COULD RISE A BIT MORE AND THE MARKET WOULD STILL BE IN GOOD SHAPE ACCORDING TO MIKE MYERS A VICE PRESIDENT AT RODMAN & RENSHAW CAPITAL GROUP IT LOOKS TO US LIKE IT'S JUST A CORRECTION MR MYERS SAID YOU COULD TAKE ANOTHER COUPLE POINTS OUT OF IT AND THE MARKET WOULDN'T REALLY HAVE BEEN HURT HE SAID MR EARLY OF FEDERATED ARGUED THAT AS LONG AS CASH CONTINUES TO FLOOD INTO BOND MUTUAL FUNDS THE WAY IT HAS THIS SUMMER THERE IS LITTLE REASON TO EXPECT THE BULL MARKET TO FALTER THE 13 BILLION INFLOW INTO BOND FUNDS IN JULY WAS A RECORD ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A MUTUAL FUND TRADE GROUP THE MASSIVE FLOWS INTO BOND FUNDS SUGGEST THAT MONEY MAY STILL HAVE TO BE PUT TO WORK MR EARLY SAID AND ONLY WHEN THE RATE OF CASH INFLOWS INTO BOND MUTUAL FUNDS SLOWS WILL IT BE SAFE TO LOOK FOR A TOP IN THE MARKET HE SAID ALTHOUGH WE MAY NOT SEE BOND FUND FLOWS GO BACK TO WHERE THEY WERE A YEAR AGO EVEN JUST TO SEE THE GROWTH RATE STOP GROWING WOULD BE A PRETTY GOOD SIGN THAT THE END IS NEAR HE SAID BUT MANY MUTUAL FUND EXECUTIVES ARE CONCERNED THAT INVESTORS PLUNGING INTO BOND FUNDS MAY NOT UNDERSTAND THE RISKS THAT THEY ARE TAKING DESPERATE FOR HIGHER YIELDS THAN THEY CAN FIND IN CERTIFICATES OF DEPOSIT MANY INVESTORS ARE BUYING BONDS WITH LITTLE REGARD FOR THE RISKS WITH INTEREST RATES SO LOW A RISE IN RATES DOES MUCH GREATER DAMAGE THAN WHEN INTEREST RATES ARE HIGHER A ONEPERCENTAGEPOINT RISE IN 30YEAR BOND RATES FOR EXAMPLE FROM 6 TO 7 WOULD MEAN A PRICE DROP OF NEARLY 13 IN TERMS OF LOST CAPITAL THAT'S EQUAL TO A DROP OF MORE THAN 450 POINTS IN THE DOW JONES INDUSTRIAL AVERAGE THE NEWISSUE JUNKBOND MARKET SHOWED SIGNS OF FATIGUE AS TWO DEALS WERE PULLED DUE TO POOR MARKET CONDITIONS ACCORDING TO ONE SYNDICATE OFFICIAL A NUMBER OF OTHER DEALS ALSO MAY BE PULLED OR POSTPONED DUE TO WEAKENING DEMAND ROHR INDUSTRIES INC AND PRESIDENT BAKING CO BOTH PULLED DEBT OFFERINGS BECAUSE OF WEAK DEMAND WITH THE FORWARD CALENDAR OF JUNK BOND OFFERINGS BUILDING UP IT'S NOW A BUYER'S MARKET WHERE INVESTORS CAN DEMAND HIGHER YIELDS THAN SOME ISSUERS MAY WANT TO PAY NEW ISSUES IN THE INVESTMENTGRADE MARKET HOWEVER CHUGGED ALONG NICELY AS 14 BILLION OF CORPORATE AND 600 MILLION OF AGENCY PAPER WAS PRICED ISSUERS INCLUDED NATIONSBANK CORP FORD MOTOR CREDIT CO A UNIT OF FORD MOTOR CO BANK OF MONTREAL AND LORAL CORP IN THE INVESTMENTGRADE MARKET TRADING WAS MODERATE AS PRICES FOLLOWED TREASURY ISSUES DOWNWARD DESPITE RAISING THE INTEREST RATE TO 12 TO ATTRACT INVESTORS ROHR DECIDED TO PULL ITS 125 MILLION OFFERING OF NONCALLABLE 10YEAR SUBORDINATED NOTES THE COMPANY HAD FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY 2 AND EXPECTED THE DEBT WOULD BE PRICED NEAR 1075 TO 11 ACCORDING TO JIM KERLEY CHAIRMAN AND ACTING CHIEF FINANCIAL OFFICER INVESTORS WERE REPORTEDLY DEMANDING A HIGHER YIELD BECAUSE THEY WERE CONCERNED ABOUT THE AIRLINE INDUSTRY IN GENERAL AND A CHANGE IN COMPANY MANAGEMENT THIS YEAR IN ADDITION INVESTORS WERE CAUTIOUS BECAUSE THE COMPANY'S CASH FLOW WOULD HAVE ONLY JUST COVERED ITS INTEREST PAYMENTS AND THERE WERE MANY OTHER DEALS TO CHOOSE FROM MAKING THE MARKET VERY COMPETITIVE A HIGHYIELD MARKET SPECIALIST NOTED PRESIDENT BAKING A UNIT OF PRESIDENT INTERNATIONAL INC DECIDED TO POSTPONE ITS OFFERING AND HAS NO FUTURE PLANS TO COME TO THE MARKET A COMPANY OFFICIAL SAID THE COMPANY HADN'T BEGUN MARKETING ITS 200 MILLION OFFERING OF 10YEAR SENIOR SUBORDINATED NOTES WITH A FIVEYEAR CALL OPTION MUNICIPAL BONDS WERE BETWEEN 1/8 POINT AND 7/8 POINT LOWER IN LATE TRADING AMONG ACTIVE ISSUES THE OMAHA PUBLIC POWER DISTRICT NEB 530 OF ELECTRIC REVENUE BONDS DUE IN 2016 WERE 1/2 POINT LOWER AT 99 1/2 TO YIELD 530 IN THE PRIMARY MARKET ISSUANCE SLOWED SUBSTANTIALLY AFTER A WAVE OF PRICINGS ON WEDNESDAY SOUTH CAROLINA PUBLIC SERVICE AUTHORITY'S 6425 MILLION 1993 REFUNDING SERIES C REVENUE BONDS WERE PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELDS FROM 270 IN 1994 TO 545 IN 2032 IN THE COMPETITIVE PRICING SECTOR NEVADA'S 1676 MILLION REFUNDING BONDS WERE APPARENTLY WON BY A GOLDMAN SACHS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 46887 YIELDS FOR THOSE BONDS RANGE FROM 310 IN 1995 TO 500 IN 201012 MORTGAGE SECURITIES DECLINED REFLECTING THE TUMBLE IN TREASURY PRICES FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUE DROPPED 29/32 WHILE ITS 8 ISSUE DECLINED ONLY 9/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ISSUE FOR SEPTEMBER DELIVERY FELL 24/32 TO 99 13/32 FEDERAL HOME LOAN MORTAGAGE GOLD 6 ISSUE WAS DOWN 26/32 AT 98 26/32 AND FANNIE MAE 6 SECURITIES FELL 26/32 AT 98 21/32 DAVID JACOB WHO HEADS MORTGAGEBACKED RESEARCH AT NOMURA SECURITIES INTERNATIONAL SUGGESTED BUYERS STICK WITH GINNIE MAE SECURITIES WHICH OFFER MORE PROTECTION FROM RAPID LOAN REPAYMENTS THE ASSETBACKED MARKET WAS HOST TO MORE THAN 2 BILLION IN NEW SECURITIES INCLUDING A 135 BILLION OFFERING OF AUTO LOAN CERTIFICATES FROM GENERAL MOTORS CORP'S GMAC UNIT AND A 600 MILLION OFFERING OF AMERICAN EXPRESS CO CHARGECARD CERTIFICATES JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9309100173 930910 WHO'S NEWS AMERICAN GENERAL AGAIN FACES LOSS OF POTENTIAL CHIEF BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON MICHAEL J POULOS RETIRED UNEXPECTEDLY AS VICE CHAIRMAN OF AMERICAN GENERAL CORP TO RUN ANOTHER COMPANY BECOMING THE SECOND TOP EXECUTIVE TO LEAVE THE INSURANCE AND FINANCIAL SERVICES COMPANY IN THE PAST FIVE WEEKS ROBERT M DEVLIN PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S LIFE INSURANCE UNIT SINCE 1986 WILL SUCCEED MR POULOS EFFECTIVE OCT 1 AS VICE CHAIRMAN A DIRECTOR AND AS A MEMBER OF THE THREEPERSON OFFICE OF THE CHAIRMAN MR DEVLIN 52 YEARS OLD JOINS HAROLD S HOOK CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND PRESIDENT JAMES R TUERFF IN THE OFFICE OF THE CHAIRMAN THE COMPANY SAID THE MOVE SETS UP A POTENTIAL INTERNAL COMPETITION FOR AMERICAN GENERAL'S TOP SPOT IT'S THE SAME OLD QUESTION WHAT'S THE LINE OF SUCCESSION SAID JOANNE SMITH AN ANALYST WITH FOXPITT KELTON THAT HAS BEEN A SIMMERING ISSUE AT AMERICAN GENERAL WHERE MR HOOK HAS ANNOUNCED PLANS TO RETIRE NEAR THE END OF NEXT YEAR MR POULOS 62 A 35YEAR AMERICAN GENERAL VETERAN WHO HAS BEEN A DIRECTOR SINCE 1980 AND HAS BEEN THE MOST PROMINENT SPOKESMAN FOR THE COMPANY WITH WALL STREET WAS EXPECTED TO DEPART CONCURRENTLY WITH MR HOOK BUT HE POSSIBLY COULD HAVE SERVED AS AN INTERIM CHAIRMAN ANALYSTS SAID MR TUERFF 52 WAS PROMOTED LAST MONTH WHEN ROY W HALEY ABRUPTLY QUIT AS PRESIDENT THE THIRD POTENTIAL HEIR APPARENT TO RESIGN IN FIVE YEARS AT THE TIME MR TUERFF WAS LABELED THE NEXT HEIR APPARENT AND MR HOOK NOTED YESTERDAY THAT IF RANK BECOMES AN ISSUE WITHIN THE OFFICE OF THE CHAIRMAN MR TUERFF WILL RANK AHEAD OF MR DEVLIN HE IS THE SENIOR MAN THE LONGTIME CHAIRMAN SAID OF MR TUERFF ADDING THAT BOTH MEN ARE QUALIFIED GENERAL MANAGERS WHAT WE'VE DONE IS ADD A REPRESENTATIVE OF THE NEXT GENERATION OF MANAGEMENT HERE AND THAT STRENGTHENS THE OVERALL ORGANIZATION MR HOOK 61 SAID THE MOVES DO NOT AFFECT HIS RETIREMENT PLANS HE SAID HE HAD ALWAYS ANTICIPATED A STAGGERED DEPARTURE FOR HIMSELF AND MR POULOS ALTHOUGH I EXPECTED TO BE THE FIRST ONE OUT THE TWO WORKED TOGETHER AT AMERICAN GENERAL FOR 23 YEARS MR POULOS SAID HE WAS APPROACHED AUG 19 WITH THE NEW OPPORTUNITY AT A COMPANY HE DECLINED TO IDENTIFY HIS HIRING WILL BE ANNOUNCED NEXT WEEK HE SAID ADDING THAT HIS POST WILL BE A NO 1 SPOT AND THAT THE FIRM IS INSURANCERELATED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN GENERAL FELL 125 TO 34375 9309100172 930910 VIRGIN FLIGHT PLAN UK TO HONG KONG MAY BE SUSPENDED BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG RICHARD BRANSON IS THREATENING TO SUSPEND PLANS FOR HIS VIRGIN ATLANTIC AIRWAYS TO FLY BETWEEN LONDON AND HONG KONG BECAUSE AUTHORITIES HERE INSIST ON GIVING HIM THE EQUIVALENT OF A GRAVEYARD SHIFT IN WHICH TO OPERATE MR BRANSON WHO HAS BEEN TRYING TO ELBOW INTO THE CROWDED ROSTER AT HONG KONG'S KAI TAK AIRPORT FOR MONTHS SAID LONDONBASED VIRGIN WILL DECIDE WHETHER TO PROCEED NEXT WEEK BUT HE ADDED IN A TELEPHONE INTERVIEW IF WE CAN'T GET IT RESOLVED WE WOULD PUT IT OFF INDEFINITELY MR BRANSON VIRGIN'S CHAIRMAN WANTS TO LAUNCH DAILY SERVICE ON THE ROUTE IN FEBRUARY 1994 AND WOULD NEED FOUR MONTHS' NOTICE TO PREPARE HE HAS OVERCOME A MAJOR HURDLE AT HOME CLINCHING ADEQUATE TAKEOFF TIMES FROM HEATHROW AIRPORT IN HONG KONG HOWEVER HE HAS BEEN OFFERED DEPARTURE TIMES THAT WOULD MEAN BRINGING PASSENGERS INTO LONDON IN THE MIDDLE OF THE NIGHT HONG KONG'S SLOT COORDINATOR HAS OFFERED TAKEOFF TIMES BETWEEN 9 PM AND 10 PM ON MOST DAYS WHICH WOULD MEAN ARRIVING IN THE UK AROUND 3 AM RIVALS BRITISH AIRWAYS AND SWIRE PACIFIC LTD'S CATHAY PACIFIC AIRWAYS WHICH BOTH FLY TWICE DAILY TO LONDON TOUCH DOWN THERE EARLY IN THE DAY AIRPORT AUTHORITIES SAY KAI TAK WHICH IS NEARING ITS CAPACITY HAS VIRTUALLY NO SLOTS AVAILABLE FOR NEW ENTRANTS INCREASINGLY ALL OF HONG KONG IS PEAK TIME SAID JOHN SLOSAR A CATHAY PACIFIC EXECUTIVE WHO ALSO SERVES AS SLOT COORDINATOR AT KAI TAK IF YOU WANT TO ARRIVE AT 630 AM AND LEAVE BEFORE 9 AM THERE ARE SLOTS AVAILABLE HE CONCEDED THAT SUCH A SCHEDULE DOESN'T SUIT CARRIERS FLYING LONGHAUL INTERCONTINENTAL ROUTES ESTABLISHED CARRIERS CLAIM GRANDFATHER RIGHTS OVER THE SLOTS THEY ALREADY USE AND HAVE PRIORITY IF NEW SLOTS OPEN LOTS OF CARRIERS IF THEY DON'T GET WHAT THEY WANT HAVE TO GO FOR SOMETHING ELSE MR SLOSAR SAID MR BRANSON SAID THAT UNLESS WE HAVE TIMES COMPETITIVE WITH THE AIRLINES FLYING THE ROUTE WE CAN'T ATTRACT BUSINESS PASSENGERS WE WOULD HAVE THOUGHT A THIRD COMPETITOR ON SUCH AN IMPORTANT ROUTE WOULD BE IMPORTANT ENOUGH FOR SLOTS TO BE HAD THE ARRIVAL OF HIS CARRIER ON THE ROUTE COULD BREAK THE DUOPOLY OF BRITISH AIRWAYS AND CATHAY PACIFIC AND PUSH DOWN FARES IT WOULD BE A SHAME FROM THE CONSUMER POINT OF VIEW IF HE DOESN'T COME SAID STEVE MILLER DIRECTOR OF TRINITY AVIATION AN AIRCRAFT CONSULTING CONCERN THE GUY IS VERY DYNAMIC AND HE WOULD CERTAINLY STIR UP THE MARKET VIRGIN A VIRGIN GROUP LTD UNIT HAS BEEN PARTICULARLY SUCCESSFUL AT LURING BUSINESS PASSENGERS FROM RIVAL CARRIERS BY SELLING FIRSTCLASS SERVICE AT PRICES EQUIVALENT TO CLUBCLASS FARES ABOUT 60 OF VIRGIN'S MARKET CONSISTS OF BUSINESS TRAVELERS VIRGIN'S SOCALLED UPPER CLASS OFFERS MORE LEG ROOM THAN MOST AIRLINES AS WELL AS SUCH UNORTHODOX AMENITIES AS A MASSAGE SERVICE VIRGIN FLIES FROM LONDON TO FIVE CITIES IN THE US AND TO ATHENS AS WELL AS TOKYO MR BRANSON SAID HE AIMS TO BEGIN FLIGHTS TO SINGAPORE AUSTRALIA SOUTH AFRICA AND MORE US CITIES IN THE NEXT YEAR 9309100171 930910 LETTERS TO THE EDITOR LONELY CONFEDERACY IN STAY OUT OF BOSNIA MY SEPT 9 EDITORIAL PAGE ARTICLE YESTERDAY I WAS MISTAKEN ABOUT THE DIPLOMATIC HISTORY OF THE CONFEDERACY WHICH NEVER WAS GRANTED FORMAL RECOGNITION BY ANY COUNTRY I REGRET MY ERROR WHICH ORIGINATES IN THE FACT THAT WHEN MY FATHER DRAGGED ME FROM ONE CIVIL WAR BATTLEFIELD TO ANOTHER I WAS NOT PAYING SUFFICIENT ATTENTION 9309100170 930910 PEPPERAND SALT THAT IT JUST MIGHT BE THEY'RE PUTTING SAFETY SECOND IS THE CURRENT GET A LIFE 9309100169 930910 INTERNATIONAL GLAXO REPORTS STRONG RESULTS BOOSTS PAYOUT BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LONDON GLAXO HOLDINGS PLC REPORTED A SURPRISINGLY ROBUST 17 JUMP IN PRETAX PROFIT FOR THE YEAR ENDED JUNE 30 AND SWEETENED ITS YEARLY DIVIDEND PAYOUT TO SHAREHOLDERS IN A BID TO DISPEL A PROTRACTED MALAISE FOR ITS STOCK EUROPE'S BIGGEST DRUGMAKER SAID PRETAX PROFIT IN FISCAL 1993 SPURTED TO 168 BILLION 26 BILLION FROM 143 BILLION THE PREVIOUS YEAR SALES JUMPED 20 DURING FISCAL 1993 TO 493 BILLION FROM 41 BILLION A YEAR EARLIER GLAXO SAID THAT EXCLUDING CURRENCY FACTORS SALES ROSE A MORE MODEST 11 WITH VOLUME GROWTH ACCOUNTING FOR 10 PERCENTAGE POINTS OF THE INCREASE AND PRICE JUMPS A SINGLE POINT VOLUME GROWTH IS A CLOSELY WATCHED BAROMETER OF DRUGINDUSTRY PERFORMANCE AT A TIME WHEN COSTCONTAINMENT PRESSURE SPREADING AMONG PURCHASERS THROUGHOUT THE WORLD MAKES PRICE INCREASES VIRTUALLY IMPOSSIBLE TO ACHIEVE SEPARATELY GLAXO DIRECTORS APPROVED A 29 BOOST IN THE DIVIDEND PAYOUT TO 22 PENCE 34 CENTS A SHARE FROM 17 PENCE A SHARE A YEAR EARLIER CHIEF EXECUTIVE RICHARD SYKES CALLED THE DIVIDEND A REFLECTION OF OUR STRONG BUSINESS PERFORMANCE OUR FUTURE PROSPECTS AND A REFLECTION OF CASH IN HAND THAT CASH PILE WHICH BALLOONED 36 DURING FISCAL 1993 TO 18 BILLION HAS BECOME A POINT OF CONTENTION IN MARKETS HERE WITH SOME ANALYSTS PRESSING THE COMPANY TO LAUNCH A SHARE BUYBACK PROGRAM HOWEVER DR SYKES INSISTED THAT GLAXO IS IN NO HURRY TO GET RID OF THAT CASH AND DENIED ANY IMMEDIATE PLANS FOR A SHARE BUYBACK PROGRAM INVESTORS STILL GAVE THE GLAXO REPORT A BULLISH RECEPTION DRIVING THE PRICE OF THE COMPANY'S STOCK UP 27 PENCE OR 45 TO 628 PENCE IN HEAVY LONDON TRADING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY GLAXO AMERICAN DEPOSITARY RECEIPTS CLOSED AT 1950 UP 1375 OR 76 ON HEAVY VOLUME OF 4806300 ADRS GLAXO'S SALES RELECTED CONTINUED GROWTH FOR ITS FLAGSHIP ULCER DRUG ZANTAC AS WELL AS BURGEONING SALES OF A SPATE OF PROMISING PRODUCTS LAUNCHED DURING THE PAST THREE YEARS ZANTAC SALES EXCLUDING EXCHANGERATE FLUCTUATIONS ROSE 11 TO 217 BILLION REPRESENTING AN UNCHANGED 44 SHARE OF GLAXO'S TOTAL REVENUE US SALES OF ZANTAC JUMPED 13 IN CONSTANTEXCHANGE RATES THE RATE OF GROWTH IN EUROPE WAS A MORE MODEST 6 9309100168 930910 TECHNOLOGY FDA CLEARS SALE OF ALZHEIMER'S DRUG WARNERLAMBERT'S COGNEX IS SOLE TREATMENT COULD PRODUCE HUGE REVENUE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL THE US FOOD AND DRUG ADMINISTRATION CLEARED THE WAY FOR WARNERLAMBERT CO TO SELL ITS ALZHEIMER'S DISEASE DRUG COGNEX THE FIRST MEDICINE TO WIN GOVERNMENT APPROVAL FOR TREATING THE DEGENERATIVE BRAIN DISORDER THE FDA'S ACTION HAD BEEN ANTICIPATED SINCE MARCH WHEN AN ADVISORY PANEL TO THE FEDERAL AGENCY RULED THAT THE DRUG ALSO KNOWN AS TACRINE PRODUCED A STATISTICALLY SIGNIFICANT BENEFIT TO PEOPLE WITH MILD TO MODERATE CASES OF ALZHEIMER'S DISEASE NONETHELESS RELEASE OF THE DRUG FOR COMMERCIAL MARKETING IS EXPECTED TO CAUSE A STIR AMONG DOCTORS AND FAMILIES OF PEOPLE WITH ALZHEIMER'S SINCE THERE CURRENTLY IS NO OTHER TREATMENT FOR THE DISEASE COGNEX ISN'T A CURE AND RESEARCH STUDIES SUGGEST ONLY ABOUT 40 OF MILDLY AFFECTED PEOPLE WILL REALIZE A BRIEF SLOWING OF PROGRESSIVE MEMORY LOSS AS A RESULT OF TAKING THE DRUG BUT SPECIALISTS WHO TREAT THE DISEASE EXPECT MANY OF THE FOUR MILLION AMERICANS WITH ALZHEIMER'S DISEASE TO GIVE THE DRUG A TRY WARNERLAMBERT SAID ITS PARKEDAVIS UNIT WILL SELL COGNEX AT 305 FOR A DAILY DOSE AT WHOLESALE MAKING IT AVAILABLE FOR PRESCRIPTION BY MIDOCTOBER AT THE LATEST DRUG INDUSTRY ANALYSTS PREDICT COGNEX MAY GENERATE AS MUCH AS 500 MILLION IN REVENUE BY 1996 THAT WOULD MAKE IT BY FAR THE MOST IMPORTANT DRUG IN WARNERLAMBERT'S HISTORY SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER INC INVESTORS RESPONDED POSITIVELY TO THE APPROVAL AND THE COMPANY'S STOCK WAS QUOTED AT 69125 UP 1875 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COGNEX HAS RUN AN ESPECIALLY ROUGH SEVENYEAR ROAD TO APPROVAL THE DRUG GAINED NATIONAL ATTENTION IN LATE 1986 WHEN AN OBSCURE CALIFORNIA PSYCHIATRIST WILLIAM SUMMERS REPORTED STARTLING BENEFITS FROM USE OF THE DRUG THEN CALLED THA THE REPORT LED THE NATIONAL INSTITUTE OF AGING AND THE FDA TO UNDERTAKE A MAJOR TRIAL OF THE DRUG WHICH WAS RUN BY WARNERLAMBERT IN EXCHANGE THE MORRIS PLAINS NJ PHARMACEUTICALS AND CONSUMER HEALTH COMPANY RECEIVED EXCLUSIVE RIGHTS TO MARKET THE DRUG THE FDA LATER FOUND A LARGE NUMBER OF IRREGULARITIES IN DR SUMMERS'S STUDY MOREOVER THE FIRST WARNERLAMBERT STUDY PRODUCED EQUIVOCAL RESULTS IN 1991 THE ADVISORY PANEL TO THE FDA TWICE REJECTED THE DRUG SUGGESTING WARNERLAMBERT REDESIGN THE CLINICAL TRIAL AND TEST THE DRUG AT HIGHER DOSES IN TWO NEW STUDIES COMPLETED LATE LAST YEAR ONE OF 12 WEEKS' DURATION AND ANOTHER 30 WEEKS LONG RESEARCHERS FOUND THAT PATIENTS WHO TOOK THE DRUG HAD A SLOWER LOSS OF MEMORY AND COGNITIVE FUNCTION THAN THOSE GIVEN A PLACEBO COGNEX APPEARS TO WORK BY BLOCKING AN ENZYME THAT DESTROYS ACETYLCHOLINE A NERVE TRANSMITTER THAT HELPS SEND MESSAGES FROM ONE BRAIN CELL TO ANOTHER SCIENTISTS BELIEVE MEMORY LOSS FROM THE DISEASE RESULTS FROM THE DEATH OF CELLS THAT MAKE ACETYLCHOLINE COGNEX DOESN'T AFFECT THE UNDERLYING CAUSE OF CELL DEATH BUT MAY IMPROVE THE SUPPLY OF ACETYLCHOLINE FOR A WHILE THE DRUG CAN PRODUCE AN INCREASE IN LIVER ENZYMES SUGGESTING POTENTIAL LIVER DAMAGE IN ABOUT ONETHIRD OF PATIENTS DOCTORS ARE BEING TOLD TO MONITOR PATIENTS WITH BLOOD TESTS EVERY WEEK FOR THE FIRST 18 WEEKS OF TREATMENT THE COMPANY SAID ENZYME LEVELS RETURN TO NORMAL WHEN TREATMENT IS REDUCED OR DISCONTINUED ANALYSTS SAID THEY BELIEVED APPROVAL OF COGNEX HAD BEEN HELD UP BY THE FDA UNTIL THE AGENCY AND WARNERLAMBERT REACHED AN AGREEMENT OVER A DISPUTE RESULTING FROM INSPECTIONS OF THE COMPANY'S MANUFACTURING OPERATIONS ANALYSTS SAID THEY EXPECTED THE AGENCY TO SOON APPROVE ANOTHER COMPANY DRUG NORONTIN AN ANTICONVULSANT ALSO AS A RESULT OF THE AGREEMENT 9309100167 930910 TECHNOLOGY LPA CHOLESTEROL MAY PLAY A ROLE IN CLOT PROBLEMS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL HEARTDISEASE RESEARCHERS MAY HAVE FOUND HOW A STRANGE FORM OF CHOLESTEROL IS INVOLVED IN HEART ATTACKS KNOWN AS LIPOPROTEIN A OR LPA THIS TYPE OF CHOLESTEROL APPEARS TO BLOCK THE BODY'S NORMAL ABILITY TO DISSOLVE BLOOD CLOTS ACCORDING TO A TEAM OF RESEARCHERS AT THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER IN DALLAS OF THE MANY FORMS OF CHOLESTEROL IN THE BLOOD BEARING SUCH DESIGNATIONS AS HDL AND LDL THE LPA FORM HAS BEEN ONE OF THE MOST BAFFLING IT'S BELIEVED THAT LPA MAY BE INVOLVED IN ONEFOURTH OF THE HEART ATTACKS THAT HIT YOUNG AND MIDDLEAGED MEN BUT HOW IT WREAKS ITS DAMAGE HAS BEEN UNKNOWN THE NEW CLUE THAT LPA MAY INTERFERE WITH THE BREAKUP OF BLOOD CLOTS IS DESCRIBED IN A REPORT APPEARING IN THIS MONTH'S ISSUE OF THE JOURNAL CIRCULATION BY L DAVID HILLIS AND HIS COLLEAGUES MOST HEART ATTACKS ARE CAUSED BY A BLOOD CLOT PLUGGING UP ONE OF THE HEART MUSCLE'S CORONARY ARTERIES IN MANY INSTANCES THE TEXAS RESEARCHERS NOTED THE BODY WILL RELEASE NATURAL CLOT DISSOLVERS THAT GET RID OF THE CLOT AND REOPEN THE BLOCKED ARTERY IN SOME PATIENTS THIS CLOT DISSOLUTION OCCURS IN A MATTER OF MINUTES WHILE IN OTHERS IT MAY TAKE HOURS OR DAYS IN STILL OTHERS THE OFFENDING CLOT MAY NEVER GET DISSOLVED IN THEIR STUDY THE RESEARCHERS MEASURED LPA LEVELS IN 105 PATIENTS SEVERAL MONTHS AFTER THEY HAD THEIR FIRST HEART ATTACK THE 53 PATIENTS WHOSE ARTERIES REMAINED BLOCKED BY A BLOOD CLOT HAD AN AVERAGE LPA LEVEL TWICE AS HIGH AS THE 52 PATIENTS WHOSE ARTERIES HAD SPONTANEOUSLY REOPENED WITHIN MINUTES TO DAYS AFTER THEIR HEART ATTACK THE REOPENING PRESUMABLY OCCURRED WHEN THE BODY DISSOLVED THE CLOT THAT CAUSED THE HEART ATTACK NONE OF THE PATIENTS HAD BEEN TREATED WITH ANY OF THE NEW CLOTDISSOLVING DRUGS THE SCIENTISTS NOTED THAT PREVIOUS LABORATORY RESEARCH SHOWED THAT A PROTEIN THAT COATS EACH TINY GLOBULE OF LPA CHOLESTEROL BEARS A REMARKABLE SIMILARITY TO THE PROTEIN THE BODY PRODUCES TO TRIGGER THE DISSOLUTION OF BLOOD CLOTS THE NEW STUDY PROVIDES THE FIRST EVIDENCE IN HUMANS SUPPORTING THE THEORY THAT THE LPA PROTEIN MAY MIMIC THE CLOT DISSOLVER AND THEREBY JAM THE CHEMICAL CHAIN REACTION THAT NORMALLY GETS RID OF BLOOD CLOTS THE RESEARCHERS SAID NEW STUDIES ARE NEEDED TO SEE IF A HIGH LPA LEVEL IS A RISK FACTOR FOR HEART DISEASE AND IF MEASURING LPA LEVELS WILL HELP PREDICT A HEARTATTACK PATIENT'S ODDS OF SURVIVING 9309100166 930910 FOREIGN EXCHANGE MARK STAYS STRONG DESPITE RATE CUTS GAINS ON DOLLAR MOST OTHER CURRENCIES BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK UNFAZED BY A CUT IN GERMAN INTEREST RATES INVESTORS CONTINUED TO BUY MARKS BOOSTING IT AGAINST THE DOLLAR AND MOST OTHER CURRENCIES IN ACTIVE TRADING BUT THE US CURRENCY MANAGED TO HOLD ITS GROUND AGAINST THE YEN AS PLAYERS LOOKED AHEAD TO FRIDAY'S RELEASE OF THE BANK OF JAPAN'S QUARTERLY SURVEY OF JAPANESE BUSINESS SENTIMENT FOR SIGNS OF WEAKNESS IN THE JAPANESE ECONOMY LATE IN NEW YORK YESTERDAY THE DOLLAR WAS QUOTED AT 16005 MARKS DOWN FROM 16130 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10540 YEN OFF A BIT FROM 10560 YEN STERLING WAS TRADING AT 15490 UP FROM 15415 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10558 YEN AND AT 16018 MARKS TRADERS SAID THE NEWS THAT THE BUNDESBANK SLICED GERMANY'S KEY DISCOUNT AND LOMBARD RATES HALF A PERCENTAGE POINT EACH CAUSED THE DOLLAR TO PLUNGE AFTER IT BECAME CLEAR THAT BULLISH MARK INVESTORS WEREN'T GOING TO SWITCH OUT OF THE CURRENCY IT WAS A BIGGER CUT THAN EXPECTED BUT THERE WAS NO SELLING OF MARKS SAID PAUL FARRELL A TRADER AT CHASE MANHATTAN BANK IN NEW YORK THERE WAS STILL A STRONG UNDERLYING DEMAND FOR MARKS THE VALUE OF A CURRENCY USUALLY FALLS WHEN A COUNTRY LOWERS ITS INTEREST RATES BECAUSE DEPOSITS DENOMINATED IN THAT CURRENCY YIELD LESS BUT TRADERS SAID THAT WHEN THE DOLLAR FAILED TO GAIN ANY GROUND AGAINST THE MARK ON THE RATECUT NEWS SENTIMENT ON THE DOLLAR QUICKLY SOURED CAUSING THE US CURRENCY TO DROP THROUGH KEY SUPPORT LEVELS ANOTHER FACTOR HURTING THE DOLLAR WAS THE BELIEF THAT THE BUNDESBANK'S RATE CUTS WOULD HELP THE GERMAN ECONOMY TO RECOVER IT SEEMED OK AS LONG AS WE HELD OVER 16100 MARKS BUT WHEN WE BROKE THAT LEVEL ALL HELL BROKE LOOSE SAID CHRISTOPHER S BOURDAIN A CORPORATE TRADER AT CREDIT SUISSE IN NEW YORK THE DOLLAR BROKE THROUGH THAT LEVEL EARLY IN THE NORTH AMERICAN DAY THE DOLLAR THEN SLID AS FAR AS 15935 MARKS ITS LOWEST LEVEL SINCE JUNE 4 BEFORE BUYERS EMERGED TO PROP IT BACK UP FOR THE REST OF THE DAY CHASE'S MR FARRELL NOTED THAT EVEN AFTER THE BUNDESBANK MOVES WHICH SET GERMANY'S DISCOUNT RATE AT 625 AND ITS LOMBARD RATE AT 725 GERMAN RATES REMAIN FAR ABOVE THOSE IN THE US ALSO HE ARGUED GLOBAL INVESTORS SEE OPPORTUNITIES IN GERMANY AS MORE ATTRACTIVE THAN THOSE IN THE US WHERE STOCK AND BOND MARKETS ARE ALREADY AT RECORD LEVELS AND MIGHT BE EXPECTED TO DROP IN THE SHORT TERM FROM THIS POINT FORWARD PEOPLE FEEL MOST COMFORTABLE IN GERMANY HE SAID THAT'S THE HIGHEST YIELDING RETURN YOU CAN RECEIVE MR FARRELL AND OTHER TRADERS ALSO NOTED THAT YESTERDAY'S EASING MEANS GERMAN RATES ARE UNLIKELY TO FALL FURTHER IN THE SHORTTERM LOCKING IN THE INTERESTRATE DIFFERENTIAL BETWEEN THE MARK AND OTHER CURRENCIES I THINK FURTHER INTERESTRATE CUTS IN GERMANY ARE GOING TO BE SLOW TO COME SAID MICHAEL MCKEEVER AN ASSISTANT VICE PRESIDENT AT FUJI BANK IN NEW YORK AGAINST THE YEN HOWEVER THE DOLLAR MANAGED TO REMAIN FAIRLY FIRM TRADERS SAID THE US CURRENCY WAS SUPPORTED ON EXPECTATIONS THAT FRIDAY'S DATA FROM THE JAPANESE ECONOMIC SURVEY WILL SHOW CONTINUED WEAKNESS AND COULD PROMPT JAPAN TO TAKE ADDITIONAL STIMULATIVE MEASURES 9309100165 930910 SEMICONDUCTOR ORDERS INDICATOR SAN JOSE CALIF SEMICONDUCTOR ORDERS CONTINUED TO BE ROBUST WITH THE INDUSTRY'S LEADING INDICATOR IN AUGUST THE BOOKTOBILL RATIO AT 107 THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THE RATIO INDICATES THAT FOR EVERY 100 IN CHIPS SHIPPED THE INDUSTRY GOT 107 IN ORDERS NEW ORDERS BASED ON A THREEMONTH AVERAGE WERE 224 BILLION DOWN SLIGHTLY FROM 229 BILLION IN JULY 9309100164 930910 HONDA NAMES ITS NEWEST VEHICLE TORRANCE CALIF HONDA MOTOR CO'S US ARM SAID THE NAME OF ITS NEW SPORTUTILITY VEHICLE IS THE PASSPORT THE PASSPORT WILL BE BUILT FOR HONDA AT THE JOINTVENTURE SUBARUISUZU ASSEMBLY PLANT IN LAFAYETTE IND HONDA HOPES TO SELL 20000 PASSPORTS IN THE 1994 MODEL YEAR 9309100163 930910 WHO'S NEWS RHONEPOULENC RORER RESTRUCTURES TOP MANAGEMENT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL COLLEGEVILLE PA FOLLOWING THE DEPARTURE OF ONE OF ITS TOP OFFICERS RHONEPOULENC RORER INC SAID IT WILL CONSOLIDATE ITS TOP MANAGEMENT MICHEL DE ROSEN 42 YEARS OLD WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF THE DRUG CONCERN REPORTING TO ROBERT E CAWTHORN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR DE ROSEN HAS BEEN CHIEF EXECUTIVE OFFICER OF RHONEPOULENC SA'S FIBRES AND POLYMERS BUSINESS SINCE 1988 MARTIN PINOT CURRENTLY EXECUTIVE VICE PRESIDENT OF THE FIBRES AND POLYMERS DIVISON AT RHONEPOULENC SA WILL SUCCEED MR DE ROSEN AS CHIEF EXECUTIVE OFFICER OF THAT DIVISION ACCORDING TO RHONEPOULENC RORER WHICH IS AN AFFILIATE OF THE RHONEPOULENC SA DRUG CONCERN MR DE ROSEN'S APPOINTMENT ELIMINATES RHONEPOULENC RORER'S OFFICE OF THE PRESIDENT CREATED THREE YEARS AGO THE OFFICE WAS OCCUPIED BY RANDY H THURMAN AND JEANJACQUES BERTRAND BOTH EXECUTIVE VICE PRESIDENTS MR THURMAN'S DEPARTURE GAVE US THE TIME TO ANALYZE OUR BUSINESS AND DECIDE HOW WE COULD CONSOLIDATE OUR TOP MANAGEMENT A SPOKESWOMAN SAID MR BERTRAND WHO ALSO IS PRESIDENT OF RHONEPOULENC RORER SA WILL BECOME VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PASTEUR MRIEUX SERUMS & VACCINES ANOTHER FRENCH DRUG CONCERN EFFECTIVE JAN 1 1994 MR THURMAN 44 ALSO PRESIDENT OF RHONEPOULENC RORER PHARMACEUTICALS INC A RHONEPOULENC RORER DIVISION IS LEAVING TO ASSUME THE NEWLY CREATED POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF METPATH LABORATORIES A UNIT OF CORNING INC'S CORNING LAB SERVICES DIVISON CORNING NAMED DENNIS L JILOT PRESIDENT AND CHIEF OPERATING OFFICER OF METPATH MR JILOT 46 DIRECTED THE METPATH BUSINESS SINCE 1992 AND WILL REPORT TO MR THURMAN A SPOKESWOMAN FOR CORNING SAID THE CREATION OF THE TOP EXECUTIVE POSITION IS PART OF THE COMPANY'S EFFORT TO PLACE MORE EMPHASIS ON THE METPATH BUSINESS IN AUGUST CORNING COMPLETED AN ACQUISITION OF DAMON CORP THE SPOKESWOMAN SAID MR THURMAN WILL DIRECT THE INTEGRATION OF THE DAMON BUSINESS INTO METPATH RHONEPOULENC RORER IS A PUBLICLY TRADED VENTURE FORMED BY THE MERGER OF THE FRENCH GOVERNMENTOWNED RHONEPOULENC SA AND RORER GROUP INC OF PENNSYLVANIA 9309100162 930910 TECHNOLOGY SYSTEM SOFTWARE BUYS AFFILIATE CHICAGO SYSTEM SOFTWARE ASSOCIATES INC SAID IT HAS ACQUIRED ITS MEXICAN BUSINESS AFFILIATE SOLUCIONES PRODUCTIVAS SA DE CV FINANCIAL TERMS WERE NOT DISCLOSED THE COMPANY SAID THE ACQUIRED AFFILIATE'S OPERATIONS INCLUDE TWO OTHER COMPANIES TECNOLOGIA Y GERENCIA INTERNACIONAL SA DE CV AND TECHNOLOGIA MRP SA DE CV 9309100161 930910 BUSINESS BRIEF P&G'S CHAIRMAN GOT 124 PAY BOOST FOR FISCAL 1993 DESPITE MAJOR CUTBACKS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO WHICH IS CUTTING 13000 JOBS AS PART OF A RESTRUCTURING GAVE ITS CHAIRMAN A 124 SALARY INCREASE FOR FISCAL 1993 ACCORDING TO THE COMPANY'S PROXY STATEMENT THE SALARY OF EDWIN L ARTZT P&G'S CHAIRMAN INCREASED TO 1137500 FROM 1012500 IN FISCAL 1992 MR ARTZT ALSO RECEIVED AN INCREASE IN HIS INCENTIVE BONUS MOREOVER THE CINCINNATIBASED CONSUMERPRODUCTS COMPANY SAID IT'S STILL CALCULATING INCENTIVE BONUSES AND COULD ADJUST THEM UPWARD MR ARTZT'S INCENTIVE BONUS INCREASED 87 TO 625000 FROM 575000 THOUGH THE FINAL AMOUNT COULD BE HIGHER A P&G SPOKESWOMAN SAID MR ARTZT AND SEVERAL OTHER TOP EXECUTIVES DID TAKE CUTS IN RESTRICTED STOCK AWARDS LINKED TO EARNINGS PERFORMANCE MR ARTZT RECEIVED RESTRICTED STOCK VALUED AT 262800 DOWN 543 FROM 575000 THE PREVIOUS YEAR ADDING IN OTHER COMPENSATION SUCH AS INSURANCE AND BENEFITS MR ARTZT'S ENTIRE PACKAGE PRIOR TO ANY BONUS ADJUSTMENTS TOTALED 207 MILLION DOWN 59 FROM 22 MILLION A YEAR EARLIER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY P&G CLOSED AT 48125 OFF 1125 THE SALARY OF DURK I JAGER AN EXECUTIVE VICE PRESIDENT INCREASED 189 TO 576700 FROM 485000 AND HIS INCENTIVE BONUS ROSE 16 TO 290000 FROM 250000 THE VALUE OF HIS RESTRICTED STOCK AWARD DECLINED 512 TO 122000 FROM 250000 FOR FISCAL 1993 WHICH ENDED JUNE 30 P&G POSTED A LOSS OF 656 MILLION OR 111 A SHARE REFLECTING A FOURTHQUARTER 156 BILLION RESTRUCTURING CHARGE A 1 BILLION RESERVE FOR ACCOUNTING CHANGES AND A 200 MILLION AFTERTAX RESTRUCTURING RESERVE FOR THE DIVESTITURE IN SEPTEMBER OF THE COMPANY'S JUICE BUSINESS THE RESULTS COMPARE WITH FISCAL 1992'S NET INCOME OF 187 BILLION OR 262 A SHARE FISCAL 1993 SALES ROSE 36 TO 3043 BILLION FROM 2936 BILLION A YEAR EARLIER 9309100160 930910 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CELLULAR TECHNICAL SERVICES CO AN OFFERING OF 421000 COMMON SHARES INTEGRACARE INC AN INITIAL OFFERING OF ONE MILLION COMMON SHARES VIA FIRST EQUITY CORP JPE INC AN INITIAL OFFERING OF ONE MILLION SHARES VIA RONEY & CO 9309100159 930910 WHO'S NEWS MILLIPORE CORP MILLIPORE CORP BEDFORD MASS JOHN F RENO WAS NAMED A DIRECTOR OF THE WATERPURIFICATION PRODUCTS MAKER MR RENO 53 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DYNATECH CORP A BURLINGTON MASS MAKER OF ELECTRONIC MICROPROCESSORBASED EQUIPMENT HE SUCCEEDS PAUL LAWRENCE WHO RETIRED AS A MILLIPORE DIRECTOR IN APRIL WHEN HE TURNED 70 THE COMPANY'S MANDATORY RETIREMENT AGE 9309100158 930910 WHO'S NEWS ZALE CORP ZALE CORP DALLAS PETER COPSES WAS ELECTED TO THE BOARD OF THIS RETAIL JEWELER FILLING A VACANCY CREATED BY THE DEATH OF DIRECTOR MARTIN ACKERMAN MR COPSES 35 YEARS OLD IS AN OFFICER OF LOS ANGELESBASED APOLLO CAPITAL MANAGEMENT INC THE GENERAL PARTNER OF APOLLO ADVISORS LP AN AFFILIATED APOLLO LIMITED PARTNERSHIP RECENTLY SAID IT ACQUIRED 139 OF ZALE STOCK ON A WHENISSUED BASIS 9309100157 930910 ICF KAISER'S BIG BOARD LISTING FAIRFAX VA ICF KAISER INTERNATIONAL INC A CONSULTING ENGINEERING AND CONSTRUCTION COMPANY SAID ITS COMMON STOCK WILL BEGIN TRADING ON THE NEW YORK STOCK EXCHANGE TUESDAY UNDER THE SYMBOL ICF ICF KAISER CURRENTLY TRADES IN THE NASDAQ NATIONAL MARKET SYSTEM THE COMPANY SAID BIG BOARD TRADING WOULD INCREASE ITS EXPOSURE TO INVESTORS AS WELL AS PROVIDE HIGHER LIQUIDITY 9309100156 930910 ABREAST OF THE MARKET INDUSTRIAL AVERAGE EDGES HIGHER DESPITE JUMP IN INTEREST RATES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS EKED OUT A SMALL GAIN DESPITE SURGING INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 056 POINT TO 358949 ENDING A TWODAY LOSING STREAK STANDARD & POOR'S 500STOCK INDEX GAINED 085 TO 45750 AND THE NASDAQ COMPOSITE INDEX SOARED 698 TO 73771 RECOUPING PART OF THE BRUISING LOSSES IT SUFFERED EARLIER THIS WEEK ADVANCING ISSUES OUTPACED DECLINERS 1130 TO 877 VOLUME ON THE BIG BOARD DROPPED TO 257127440 SHARES FROM 278689970 SHARES WEDNESDAY THOUGH LONGTERM INTEREST RATES SHOT UP TO 596 FROM 586 WEDNESDAY STOCKS WERE HELPED BY NEWS OF CUTS IN GERMAN INTEREST RATES AND BY REPORTS THAT INITIAL UNEMPLOYMENT CLAIMS FELL 10000 IN THE WEEK ENDED SEPT 4 BOTH DEVELOPMENTS REVIVED INVESTORS' HOPE THAT THE US ECONOMY IS ON A FIRM PATH TO RECOVERY BUT THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER SAID HE WAS DISAPPOINTED WITH THE PERFORMANCE OF STOCKS THOUGH THE MARKET ATTEMPTED TO RALLY SEVERAL TIMES DURING THE DAY IT FAILED EACH TIME WHEN WE LEFT WEDNESDAY THERE WAS A FEELING THAT THE MARKET HAD SEEN THE WORST AND PEOPLE WOULD COME IN AND BUY STOCKS HE SAID BUT THE BULLS COULDN'T GET THE MARKET GOING OTHER STOCK STRATEGISTS WEREN'T QUITE SO PESSIMISTIC HOWEVER RICHARD HOEY PORTFOLIO MANAGER OF DREYFUS'S 844 MILLION GROWTH & INCOME FUND SAID HE WAS IMPRESSED THAT STOCKS MANAGED TO STAY AFLOAT PEOPLE WHO ARE BEARISH HAVE BEEN SAYING FOR A WHILE WAIT TILL THE BOND MARKET BACKS UP STOCKS ARE GOING TO GET SMASHED' HE SAID MR HOEY CAUTIONED HOWEVER THAT STOCK INVESTORS WILL HAVE TO WRESTLE WITH A HEAVY CALENDAR OF NEW STOCK ISSUES IN COMING WEEKS THERE'S THIS POWERFUL SUPPLYDEMAND BATTLE GOING ON HE SAID BANK STOCKS CAPTURED INVESTORS' ATTENTION YESTERDAY MERRILL LYNCH'S BANK ANALYSTS TOLD CLIENTS THAT THE STOCKS COULD BE GEARING UP FOR A CATCHUP SEPTEMBER RALLY SANDRA FLANNIGAN AN ANALYST AT MERRILL SAID BANK STOCKS HAVE BEEN LAGGING BEHIND DURING THE RECENT MARKET RALLY SHE SAID THEY ARE LIKELY TO BENEFIT IN COMING WEEKS FROM STRONG THIRDQUARTER EARNINGS AN INCREASED EMPHASIS ON VALUE INVESTING AND THE RECENT DECLINE IN INTEREST RATES WHICH MAKES CAPITAL CHEAPER SOME OF THE BIGGEST GAINERS WERE STOCKS THAT MERRILL AND OTHER INVESTMENT BANKS TOUTED JP MORGAN SOARED 1 3/4 TO 77 5/8 A 52WEEK HIGH MELLON BANK GAINED 2 1/4 TO 59 1/8 FIRST UNION ROSE 2 TO 47 3/4 FLEET FINANCIAL GAINED 1 TO 33 AND NATIONAL CITY ADDED 7/8 TO 27 1/8 OTHER BANK STOCKS ALSO BENEFITED CITICORP SURGED 1 3/4 TO 35 3/8 A 52WEEK HIGH FIRST INTERSTATE ROSE 2 1/8 TO 64 3/8 AND CHEMICAL BANKING INCREASED 2 1/8 TO 43 1/8 TECHNOLOGY STOCKS SNAPPED BACK FROM A RECENT SELLOFF ON NASDAQ MICROSOFT LEAPED 1 3/4 TO 76 1/4 SYNOPSYS JUMPED 3 TO 50 LOTUS DEVELOPMENT GAINED 1 3/4 TO 35 3/4 AND APPLIED MATERIALS ROSE 2 3/4 TO 68 TAMBRANDS ROSE 1 1/4 TO 49 1/8 THE STOCK ADVANCED AFTER USA TODAY COLUMNIST DAN DORFMAN REPORTED THAT GILLETTE IS EXPLORING THE POSSIBILITY OF ACQUIRING THE COMPANY GILLETTE EASED 3/8 TO 52 3/4 DIVIDENDRELATED TRADING IN HANSON PLC AND ROYAL DUTCH/SHELL HELPED INFLATE COMPOSITE VOLUME BY MORE THAN 57 MILLION SHARES HANSON ADDED 1/4 TO 19 3/8 ON COMPOSITE VOLUME OF 414 MILLION SHARES THE LONDONBASED COMPANY WILL PAY A GROSS QUARTERLY DIVIDEND OF ABOUT 27 CENTS FOR EACH AMERICAN DEPOSITARY RECEIPT ROYAL/DUTCH SHELL JUMPED 1 1/8 TO 101 5/8 THE COMPANY INCREASED ITS STOCK DIVIDEND FOR THE FIRST HALF OF 1993 GLAXO HOLDINGS GAINED 1 3/8 TO 19 1/2 THE DRUG COMPANY RAISED ITS DIVIDEND AND REPORTED THAT ITS PRETAX PROFIT FOR THE FISCAL YEAR ENDED JUNE 30 LEAPED 17 SG WARBURG RAISED ITS INVESTMENT RATING ON GLAXO TO BUY FROM ADD BAXTER INTERNATIONAL SLID 1 1/8 TO 21 7/8 DECLINING FOR THE SECOND STRAIGHT DAY NATWEST SECURITIES LOWERED ITS INVESTMENT RATING ON BAXTER TO HOLD FROM BUY NATWEST ALSO REDUCED ITS 1993 PERSHARE EARNINGS ESTIMATE TO 204 FROM 221 AND ITS 1994 PROJECTION TO 225 FROM 252 COMERICA EASED 5/8 TO 28 THE BANK SAID IT HAS REACHED A DEFINITIVE AGREEMENT TO ACQUIRE PACIFIC WESTERN BANCSHARES FOR STOCK PACIFIC WESTERN AMEX LOST 1 1/4 TO 9 3/8 9309100155 930910 LEISURE & ARTS A MARRIAGE OF CLAY AND GLAZE BY ROXANE ORGILL NEW YORK OTTO NATZLER LOVES TO TELL THE STORY OF HOW HE BECAME ACQUAINTED WITH CLAY HIS DEEPBROWN EYES SPARKLE AS HE BEGINS THIS IS A LOVE STORY I MET A GIRL WHO TOLD ME ALL ABOUT CLAY AND I SAID THIS SOUNDS VERY INTERESTING I WOULD LIKE TO TRY MY HAND AT IT COULD YOU BRING ME A LUMP OF CLAY' THREE DAYS LATER SHE BROUGHT ME THIS LUMP OF CLAY IT WAS LOVE AT FIRST SIGHT FOR CLAY AND FOR GERTRUD AMON AFTER A FEW INFORMAL LESSONS IN CERAMICS THE COUPLE SET UP A STUDIO IN VIENNA IN 1934 EMBARKING UPON A 37YEAR PARTNERSHIP AND EVENTUAL MARRIAGE THAT WOULD PRODUCE SOME OF THE MOST ELEGANT CERAMICS OF THE 20TH CENTURY THEIR COLLABORATION WAS TO ALL APPEARANCES AS NEAR TO PERFECT AS CAN BE MR NATZLER HIMSELF ADMITS IF WE HAD NEVER MET NEITHER OF US WOULD HAVE ACHIEVED ANYTHING THE PROOF IS IN THE POTS 103 OF WHICH ARE ON VIEW AT THE AMERICAN CRAFT MUSEUM HERE THROUGH OCTOBER 10 AND THEN WILL RESURFACE IN VIENNA AT THE NEW JUDISCHES MUSEUM LATE NEXT APRIL A SHALLOW GREEN BOWL THE SIZE OF A LILY PAD HAS SIDES SO THIN ONE WONDERS HOW THEY COULD POSSIBLY BE MADE FROM CLAY BUT THE SLENDER RIM IS LEFT UNGLAZED AND EARTH BROWN AS IF TO REMIND US OF THE POT'S LOWLY ORIGINS GERTRUD DIED IN 1971 BUT OTTO AT 85 IS SPRY THIS YEAR'S BIRTHDAY INVITATION FEATURED HIM STANDING ON HIS HEAD IN HIS BIRTHDAY SUIT AND STILL WORKING IN CLAY DESPITE ARTHRITIS HE WAS REMARRIED IN 1973 TO A PHOTOGRAPHER GAIL REYNOLDS NATZLER 53 WHOM HE CREDITS WITH GETTING HIM BACK INTO THE STUDIO AFTER HIS WIFE'S DEATH HE DOESN'T THROW POTS ON THE WHEEL THAT WAS GERTRUD'S DOMAIN BUT BUILDS CUBES AND DISKS AND CYLINDERS FROM SLABS OF CLAY ALTHOUGH HE HAS BEEN WORKING SOLO FOR 18 YEARS IN CONVERSATION HE IS DRAWN LIKE A MAGNET TO THE COLLABORATION WITH GERTRUD TO THEIR SHAKY BEGINNINGS AND THEIR ENDLESS ADVENTURES AT THE START SHE WORKED AS A SECRETARY BY DAY AND THREW POTS AT NIGHT OTTO WHO HAD RECENTLY LOST HIS JOB AS A TEXTILE DESIGNER WHICH HE HATED ANYWAY DEVOTED HIMSELF FULLTIME TO DECIPHERING THE MYSTERIES OF GLAZE CHEMISTRY WHY DID THE PINK LIQUID IN ONE JAR TURN GREEN AFTER IT WAS FIRED AND THE PINK IN ANOTHER JAR BECOME BLUE THEIR FIRST FIRING AFTER WEEKS OF PREPARATION WAS A TOTAL DISASTER EVERYTHING TURNED SHADES OF BROWN AND MUCH OF THE GLAZE RAN OFF THE POTS AND FORMED PUDDLES ON THE KILN SHELVES MORE CURIOUS THAN DISCOURAGED MR NATZLER SLOWLY MASTERED A FEW OF THE COMMERCIAL GLAZES THEN TRIED MIXING THEM WHEN TO HIS SURPRISE BLACK AND WHITE DID NOT PRODUCE GRAY BUT GREEN HE CONSULTED HIS ONLY SOURCE ON THE SUBJECT HIS HIGH SCHOOL CHEMISTRY TEXT FROM A HALFPAGE DEVOTED TO POTTERY AND PORCELAIN HE LEARNED ABOUT SOME OF THE RAW MATERIALS USED IN THE MANUFACTURE OF GLAZES HE DECIDED TO MAKE HIS OWN OF COURSE I STARTED OUT WITH ONEHUNDREDPERCENT DISASTERS IT WAS AT LEAST HALF A YEAR BEFORE I HAD WHAT COULD BE CALLED A GLAZE WHICH MELTED PROPERLY AND ADHERED TO THE CLAY HE SAYS HE WAS DESTROYING SO MANY OF GERTRUD'S FINE POTS THAT HE MADE CLAY TILES EXPRESSLY FOR HIS EXPERIMENTS LIKE A SCIENTIST HE KEPT DETAILED RECORDS OF THE MINERALS AND CHEMICALS USED AND TEMPERATURES AT WHICH THE CLAY WAS FIRED IN TIME HE BUILT A REPERTOIRE OF MORE THAN 2500 GLAZES THE NATZLERS PRACTICAL SUCCESS REALLY BEGAN IN 1938 WHEN THEY RECEIVED A SILVER MEDAL AT THE PARIS INTERNATIONAL EXPOSITION ON THE EVENING OF THE SAME DAY THE NAZIS MARCHED INTO VIENNA MR NATZLER LOST NO TIME IN APPLYING FOR EMIGRATION AND SEVEN MONTHS LATER HE AND GERTRUD WERE SETTLED IN LOS ANGELES AT FIRST THEY DID A LITTLE TEACHING TO MAKE ENDS MEET BUT BY YEAR'S END THEY WERE ABLE TO SUPPORT THEMSELVES BY CERAMICS ALONE THEY BOUGHT A HOUSE NESTLED IN ONE OF THE HOLLYWOOD HILLS AND MADE A STUDIO OUT OF A SMALL APARTMENT OVER THE TWOCAR GARAGE THEY WORKED IN ADJACENT ROOMS WE LEFT EACH OTHER COMPLETELY ALONE SHE DID HER WORK AND I WAS SUPPOSED TO BE INSPIRED BY IT TO INVENT A NEW GLAZE OR USE AN OLD ONE WHICH I HAD INVENTED 20 YEARS EARLIER USUALLY THERE WAS NO DISCUSSION ONLY OCCASIONALLY SHE WOULD SAY WOULDN'T IT BE NICE IF YOU COULD USE THIS GLAZE THAT YOU USED ON THAT BOTTLE' AND MOST OF THE TIME I AGREED THEIR UNDERSTANDING WAS ROOTED PERHAPS IN SHARED VALUES OF PATIENCE AND PERFECTIONISM JUST AS HE WORKED DOGGEDLY TO MASTER MONOCHROMATIC GLAZES AND VARIOUS FIRING TECHNIQUES SHE PERSISTED IN PERFECTING A VERY FEW FORMS WHICH SHE MADE OVER AND OVER WITH SLIGHT VARIATIONS SHE TOSSED OUT MANY MANY POTS WITH A CURT EXPLANATION I DIDN'T LIKE IT SAYS HE TO HER ONE MILLIMETER MADE ALL THE DIFFERENCE THEY LISTENED TO MUSIC WHILE THEY WORKED TO SCHUBERT LIEDER AND OPERA THEY PRACTICED YOGA TOGETHER AND WENT ON A GRAPEFRUITONLY DIET HE OUTLASTED HER BY A WEEK WE HAD AN INTERESTING LIFE NEVER A DULL MOMENT MS ORGILL IS A WRITER IN HOBOKEN NJ 9309100154 930910 ECONOMY REICH UNVEILS ADMINISTRATION PLANS FOR CENTRAL REEMPLOYMENT SYSTEM' BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WANTS TO OVERHAUL THE WAY FEDERAL UNEMPLOYMENT BENEFITS ARE MANAGED AND INSTEAD CREATE A CENTRAL SYSTEM FOR FINANCIAL AID CAREER ADVICE JOB SEARCH HELP AND TRAINING THE PLAN DUBBED A REEMPLOYMENT SYSTEM BY LABOR SECRETARY ROBERT REICH WOULD BE TARGETED AT WORKERS PERMANENTLY CUT FROM THEIR JOBS BY MILITARY CONVERSION IMPORTS ENVIRONMENTAL POLICY OR CHANGES IN TECHNOLOGY THE PROGRAM WOULD BE DESIGNED TO REPLACE THE CURRENT 12 BILLIONAYEAR PAYOUT OF FEDERAL EMERGENCY UNEMPLOYMENT AID AMERICAN WORKERS MR REICH SAID NEED TO REALIZE THAT THE IDEA OF A SECURE JOB IS A THING OF THE PAST JOB SECURITY AS WE HAVE KNOWN IT IS NOT COMING BACK THE END OF THE COLD WAR FOR EXAMPLE MEANS MORE THAN JUST CLOSING MILITARY BASES IT ALSO MEANS ELIMINATING ENTIRE SECTORS OF THE CIVILIAN DEFENSE INDUSTRY REPRESENTING MORE THAN A MILLION JOBS LABOR DEPARTMENT STATISTICS SHOW THREE OF FOUR WORKERS WHO LOSE THEIR JOBS AREN'T BEING REHIRED TO THOSE JOBS THE HIGHEST RATE OF PERMANENT JOB LOSS SINCE THE AGENCY BEGAN KEEPING TRACK IN 1968 AS A RESULT IF THE GOVERNMENT DOESN'T IMPROVE WORKERS' ABILITY TO SWITCH CAREERS MR REICH ARGUED WE ARE GOING TO FACE MORE AND MORE POLITICAL PRESSURE TO PRESERVE THE PAST CHANGE BECOMES THE ENEMY WHEN THERE IS THIS MUCH ANXIETY OUT THERE THE UNEMPLOYMENT PROPOSAL WHICH WILL BE SENT TO CONGRESS BY LATE OCTOBER COMES AT A TIME WHEN THE ADMINISTRATION IS FIGHTING TO PROVE ITS AGENDA FOR THE FALL FEATURING THE NORTH AMERICAN FREE TRADE AGREEMENT AND HEALTHCARE REFORM WILL CREATE PRIVATESECTOR JOBS RATHER THAN DESTROY THEM AS CRITICS CONTEND IN ADDITION THE ADMINISTRATION HAS JUST ANNOUNCED A PLAN TO CUT A TOTAL OF 252000 FEDERAL JOBS OVER THE NEXT FIVE YEARS IN A RELATED MATTER MR REICH SAID HE EXPECTS THE WHITE HOUSE TO SEEK ANOTHER EXTENSION OF EMERGENCY UNEMPLOYMENT INSURANCE WHEN THE CURRENT PROGRAM EXPIRES AT THE END OF THIS MONTH BUT HE SAID THE ADMINISTRATION WOULD LIKELY SEEK TO REDUCE THE ADDITIONAL 26 WEEKS OF FEDERAL AID FOR WORKERS WHO HAVE EXHAUSTED THEIR STATE BENEFITS WE'VE CREATED A VERY VERY EXPENSIVE PROGRAM MR REICH TOLD REPORTERS SINCE EMERGENCY BENEFITS WERE FIRST VOTED BY CONGRESS IN 1991 THEY HAVE BEEN EXTENDED TWICE TO ALLOW THE UNEMPLOYED TO RECEIVE UP TO 52 WEEKS IN TOTAL BENEFITS INCLUDING STATE AID BUT WITH THE GOVERNMENT ESTIMATING THAT PLANT CLOSINGS WILL PUT 22 MILLION PEOPLE OUT OF WORK MR REICH ARGUES THAT THE NATURE OF UNEMPLOYMENT HAS CHANGED SIGNIFICANTLY RATHER THAN WAITING OUT A DOWNTURN IN THE BUSINESS CYCLE UNTIL A REHIRE HE SAID WORKERS NEED TO LEARN NEW SKILLS TO BECOME USEFUL FOR DIFFERENT WORKPLACES IN THE 1970S FOR EXAMPLE 11 OF ALL UNEMPLOYED STAYED OUT OF WORK FOR MORE THAN SIX MONTHS BY 1992 THAT RATE HAD NEARLY DOUBLED MR REICH SAID UNDER THE ADMINISTRATION'S PROPOSAL WORKERS WHO LOSE THEIR JOBS WOULD BE CLASSIFIED ACCORDING TO WHETHER THE LOSS IS TEMPORARY OR PERMANENT IN THE CASE OF A PERMANENT JOB LOSS WORKERS COULD SEARCH THROUGH GOVERNMENTSPONSORED JOB BANKS WORKERS ALSO COULD LEARN WHAT JOBS ARE IN DEMAND AND WHAT SKILLS ARE REQUIRED FOR THOSE POSITIONS THROUGH A JOB COUNSELOR THE WORKER COULD THEN DETERMINE WHERE SCHOOLING IS AVAILABLE FOR A DESIRED JOB COMPANIES OR SCHOOLS THAT WOULD PROVIDE TRAINING FOR CERTAIN JOBS WOULD BE REQUIRED TO SUBMIT CREDENTIALS SUCH AS HOW MANY OF THEIR STUDENTS GRADUATE AND ARE PLACED IN JOBS THOSE STATISTICS WOULD BE AVAILABLE TO JOB SEEKERS AND MARKET FORCES COULD HELP THE GOOD TRAINING PROVIDERS THRIVE THE POINT MR REICH SAID IS TO MATCH POTENTIAL JOB CHANGERS WITH AVAILABLE JOBS FOR EXAMPLE WHILE MANY YOUNG PEOPLE TELL HIM THEY WANT TO BECOME HAIR STYLISTS HE SAID THE MARKET FOR THOSE JOBS IS GROWING MUCH MORE SLOWLY THAN COMPUTERSYSTEMS INTEGRATORS LABOR OFFICIALS ESTIMATE THAT THE PROGRAM WOULD BE USED BY 13 MILLION PEOPLE IN A TYPICAL YEAR ABOUT THREEQUARTERS OF THOSE WOULD FIND JOBS THROUGH THE SYSTEM WHILE ROUGHLY 300000 WOULD NEED NEW TRAINING AND EXTENDED UNEMPLOYMENT BENEFITS AGENCY OFFICIALS SAID BUSINESS OFFICIALS SUPPORT THE CONCEPT THIS WOULD ELIMINATE WASTE BY CONSOLIDATING PROGRAMS AND REALIZING THAT A DISPLACED WORKER IS A DISPLACED WORKER NO MATTER WHAT THE REASON SAID KEITH POSTON OF THE NATIONAL ALLIANCE OF BUSINESS TO HAVE A SINGLE PLACE TO GO FOR SERVICES IS AN AMBITIOUS AND WORTHY GOAL 9309100153 930910 EXECUTIVE EDUCATION A SPECIAL REPORT ESSAY COURSES THAT COUNT WHY CAN'T EXECUTIVE EDUCATION TEACH THE STUFF THAT MANAGERS REALLY CARE ABOUT BY GIL SCHWARTZ GOOD MORNING LADIES AND GENTLEMEN OF SENIOR MANAGEMENT IT IS MY GREAT PLEASURE TO SPEAK TO YOU ABOUT THE TRAINING MODULE YOU HAVE ASKED US TO PREPARE FOLLOWING THE TERMINATION OF YOUR ENTIRE HUMANRESOURCE GROUP LAST FEBRUARY AS YOU KNOW EARLY ON WE DETERMINED THAT THE PROBLEM WITH MOST EXECUTIVETRAINING PROGRAMS IS THEIR INSENSITIVITY TO THE NEEDS OF THEIR TARGET CUSTOMERS AMBITIOUS HIGHPOTENTIAL MANAGERS STRIVING TO RISE ABOVE THEIR PEERS ALWAYS SEEKING TO IMPROVE THEMSELVES NO MATTER HOW INSIGNIFICANT AND FUNGIBLE THEY MIGHT BE FORGET ABOUT MARKETING AND PACKAGING AND POSITIONING THIS IS THE '90S THERE ARE REAL CONTEMPORARY BUSINESS SKILLS THAT THESE PEOPLE NEED TO KNOW AND WE THINK ANY SERIOUS CORPORATE TRAINING EFFORT MUST ADDRESS THE BASIC FACT THAT AS ALWAYS THE CUSTOMER COUNTS AS A TOTAL QUALITY DOCUMENT THEN THIS CURRICULUM IS POSSIBLY MORE UPTODATE AND FREE OF PRIOR NOTIONS OF WHAT SHOULD BE TAUGHT THAN ANY APPROACH NOW BEING OFFERED ANYWHERE TO ARRIVE AT THIS RESULT WE PUT FORTH ONLY THOSE COURSES THAT ADDRESSED THE NEEDS ARTICULATED BY THOSE FEW EMPLOYEES WILLING TO ARTICULATE ANY NEEDS AT ALL BEYOND CONTINUED EMPLOYMENT EACH SUBJECT WE PROPOSE IS THEREFORE BASED ON REAL PERCEIVED OR IMAGINED YEARNINGS VOICED BY RESPONDENTS MOST OF WHOM ARE OF DEPARTMENTHEAD LEVEL INDIVIDUALS THAT IS WHO BELIEVE THEY KNOW EVERYTHING ALREADY THE KEY IMPROVEMENT WE BELIEVE IS THE INTRODUCTION OF A CONTEXTINTENSIVE APPROACH TO THE SUBJECT MATTER PLACING THE TRAINING MATERIAL WITHIN A REALISTIC LOCATION THAT MIRRORS ITS PROBABLE PLACE IN EVERYDAY BUSINESS LIFE WITHOUT FURTHER ADO THE CURRICULUM AS SCHOLARS CHECK IN AT OUR TRAINING SESSION THEY ARE UNWITTINGLY ENGAGED IN THE FIRST OF OUR SEMINARS MAKING THINGS WORK IN THE DEPOPULATED BUSINESS ENVIRONMENT THEY ARE HANDED A BULKY MANILA ENVELOPE FILLED WITH STUPID AND UNNECESSARY DOCUMENTATION AND ORDERED TO PRODUCE ENORMOUSLY DETAILED IMPECCABLE REPLIES BEFORE THEY RECEIVE THEIR ROOM ASSIGNMENTS A COMPUTER ROOM IS AVAILABLE BUT RESEARCH TYPING AND OTHER SUPPORT SERVICES ARE LIMITED TO ONE HYPERSENSITIVE CAREER EXECUTIVE ADMINISTRATIVE ASSISTANT WHO DOESN'T DO WINDOWS AS THEY FLOUNDER AROUND ATTEMPTING TO WORK OUT THIS DIFFICULT PROBLEM STUDENTS MAY AVAIL THEMSELVES OF TWO RELATED COURSES MAKING PEOPLE WHO DON'T REALLY REPORT TO YOU DO WHAT YOU WANT THEM TO FOR NO PARTICULAR REASON AND DOING THINGS YOURSELF STUDENTS WHO CHOOSE THE FORMER AND WHO SEEM WILLING TO ISSUE DESPERATE UNREALISTIC ORDERS TO ANYBODY WITHIN EARSHOT ARE IMMEDIATELY SHOWN TO THEIR ROOMS STUDENTS WHO SELECT THE LATTER ARE IMMEDIATELY EJECTED FROM THE MANAGEMENT TRAINING PROGRAM STUDENTS NEXT WRESTLE WITH THE VERY CURRENT PROBLEM OF MANAGING THE OVERWORKED EMPLOYEE OUR FOLKS WILL BE TAKEN BY PRIVATE JET TO AN UNDERSTAFFED STUCKEY'S ON ROUTE 80 IN THE DEEPEST PART OF OHIO AND FORCED TO ORDER AN ENTIRE LUNCHEON FOR 20 REPLACING EXTRA TURKEY WITH ROAST BEEF IN ALL THE CHEF SALADS AND OTHERWISE REQUIRING THE PRETEEN SERVICE STAFF TO SNAP OUT OF ITS TORPOR AND PROVIDE A SUPERB LEVEL OF CUSTOMER SERVICE NO MATTER HOW OBNOXIOUS YOUR REQUESTS EXTRA CREDIT WILL BE OFFERED TO THOSE STUDENTS WHO CAN CONVINCE EXHAUSTED EMPLOYEES THAT AMERICAN BUSINESS IS DOING SO POORLY THAT IT WOULD BE INAPPROPRIATE TO GIVE ANYONE MORE THAN A 35 TIP RESPONDENTS TO OUR RESEARCH MADE PARTICULAR NOTE OF THE CURRENT BUSINESS TREND TOWARD GREATER DECENTRALIZATION AND TOTAL LACK OF SUPERVISION MADE POSSIBLE BY THE LEANING MEANING AND REAMING OF MIDDLE MANAGEMENT IN RESPONSE WE SUGGEST STUDENTS SPEND SOME TIME CONSIDERING OUR NEXT MODULE HOW TO MAKE THE MOST OF THE UNSTRUCTURED WORKPLACE INFORMATION WILL BE OFFERED ON THE KEY SUBJECTS OF STEPPING AWAY WITHOUT ATTRACTING CRITICISM SAYING YOU'RE SOMEWHERE YOU'RE NOT WITH NOBODY FINDING OUT EVER AND TRAVELING TO GREAT PLACES FOR UNDESIGNATED REASONS EXTRA SPECIAL ATTENTION WILL BE PAID TO THE NEW TREND IN WHICH PEOPLE ARE STRIPPED OF THEIR PERMANENT OFFICES AND FORCED TO BOOK SPACE AT THEIR WORK LOCATIONS IF THEY DARE TO BE IN TOWN FOR MORE THAN A COUPLE OF DAYS IN A PROGRAM ENTITLED EXPLOITING INHUMAN MANAGEMENT THAT DOESN'T DESERVE ANY BETTER STUDENTS ARE TAUGHT TO MAKE AS MANY PERSONAL PHONE CALLS COPY AS MANY OF THEIR CHILDREN'S TERM PAPERS AND TAKE AS MANY NAPS AS THEY CAN ON THOSE RARE DAYS THEY ARE PERMITTED TO COME IN OFF THE ROAD IN THE SAME VEIN IT PAYS TO REMEMBER THAT LIFE DOES GO ON EVEN WHILE MOST JOBS DON'T AND PERHAPS ONE OF THE MOST REQUESTED COURSES IS INTERMEDIATE FACESTUFFING PUT IT ON YOUR TAB WHICH NOW HAS MODULES TAUGHT IN CHICAGO LOS ANGELES MIAMI NEW YORK AND TELLURIDE COLO WHERE THE CHICKEN WINGS ARE PARTICULARLY AGGRESSIVE BASICS IN CALIFORNIA BISEXUAL MENUS POWERORDERING FOR BEST BUSINESS EFFECT AND EATING WEIRD STUFF WITH JAPANESE GUYS WITHOUT GETTING NAUSEATED ARE ALL COVERED SPECIAL ATTENTION IS PAID TO EXPENSEREPORT GENERATION IN WHICH A TRAINED HYPNOTIST/PSYCHOLOGIST IS INVITED IN TO ASSIST STUDENTS IN CREATING MEMORIES IN ALL FRIENDS AND ACQUAINTANCES WHO CAN BE UTILIZED IN THE ASSEMBLY OF COHERENT IMPRESSIVE AND BOGUS BACKGUND DOCUMENTATION THE ALLIMPORTANT RECREATIONAL SIDE OF BUSINESS IS ALSO EXPLORED IN AN ANCILLARY COURSE SCHMOOZING AND BOOZING OFFERED ONLY TO HIGHLEVEL EXECUTIVES WITH MORE THAN 10 DIRECT REPORTEES THIS IS A SKILLINTENSIVE SESSION TAUGHT ON AN ACCREDITED PGA GOLF COURSE STUDENTS ARE TAKEN TO THE GREENS AND SET LOOSE ON THE FIRST TEE WITH A GROUP OF FELLOW DUFFERS AND A SECRET HIDDEN AGENDA THAT IS GIVEN TO THEM IN THEIR GOLF BAGS IT COULD BE SOMETHING AS SIMPLE AS GET ARNIE WISKOFF TO LAUGH AT THE ATTACHED SERIES OF EXTREMELY TIRED HILLARY CLINTON JOKES TO THE MORE COMPLICATED EXPLAIN TO YOUR FOURSOME HOW DIGITAL FIBEROPTIC NETWORKS THAT CARRY 500 ENTERTAINMENT CHANNELS MAKE SENSE TO MASSMARKET ADVERTISERS WITHOUT ANYONE EITHER FALLING ASLEEP OR HITTING YOU OVER THE HEAD WITH A PITCHING WEDGE AT THE END OF THE DAY TIRED BUT HAPPY OUR STUDENTS ARE USHERED ONTO THE 19TH HOLE FOR AN INTENSIVE FOLLOWUP SESSION IN THAT OLDEST DUO OF TRADITIONAL SPORTS DRINKING AND HURLING THAT BEAUTIFUL BOWL OF COMPLIMENTARY CHERRIES DOESN'T ALWAYS COME SO EASY OF COURSE SO ONE OF OUR MOST POPULAR COURSES IS ACQUIRING YOUR FREE CAR IN THIS SEMINAR EXECUTIVES ARE TAKEN BY BUS TO A REMOTE USED CAR LOT IN THE PORTION OF SOUTHERN NEVADA EAST OF LAS VEGAS THAT IS SO DESOLATE IT MAKES MOST OF UTAH LOOK PRETTY GOOD BY COMPARISON THE TASK CONVINCE THE GRIM UNIMPRESSED AUTO SALESPERSON THAT FOR SOME REASON THEY DESERVE TO GET FREE THAT FOR WHICH MOST AMERICANS PAY UP TO 50000 EXTRA CREDIT WILL THEN BE GIVEN TO THOSE WHO DRIVE THE CAR THEY ACQUIRE BACK TO THEIR HOME OFFICES AND PARK FREE IN A COMMERCIAL PARKING LOT OUR CURRICULUM ISN'T ALL ABOUT SELFISH ISSUES OF COURSE ALTHOUGH FOR SOME REASON THOSE DO SEEM TO TAKE UP A LOT OF TIME WITH OUR RESPONDENTS AS OUR TRAINING COURSE ROUNDS THE CLUBHOUSE TURN STUDENTS ARE FORCED TO CONFRONT THE REALITIES OF MANAGING CHAOS AWAKENED AT 3 AM OUR PEOPLE ARE WHISKED TO WASHINGTON DC WHERE THEY ARRIVE DISORIENTED BUT EXCITED IN TIME FOR PRESIDENT BILL CLINTON'S MORNING STAFF MEETING SEATED IN TINY UNCOMFORTABLE CHAIRS IN THE CORNER OF THE ROOM THEY WATCH IN AWE AND AMAZEMENT AS THE PRESIDENT'S MERRY DISCOMBOBULATED STAFF CONFRONTS THE PROBLEMS THAT BESET THE UNION DURING THE FINAL MINUTES OF THE MEETING AS THE DIN RISES TO A DEAFENING PITCH AND THE PRESIDENT ISSUES COMMANDS AND POLICY DIRECTIVES TO NOBODY IN PARTICULAR WHO MOVE TO CARRY THEM OUT IMMEDIATELY EACH OF OUR STUDENTS IS REQUIRED TO MANAGE CHAOS BY FORCING PRESIDENT CLINTON TO DECLARE HIS INTENTION OF STUDYING OPTIONS ON AT LEAST ONE MATTER OF GREAT INTEREST TO THE BUSINESS COMMUNITY AND PROBABLY NOBODY ELSE EXTRA CREDIT IS GIVEN TO ANYONE ABLE TO DERAIL ANY PART OF THE PRESIDENT'S ATTEMPTS TO INTRODUCE TAXATION THAT WOULD BE ONEROUS TO RICH PEOPLE AFTER A BRISK SHOWER OUR CREW MEMBERS GET INTO THEIR RALPH LAUREN KHAKIS AND HEAD OUT TO THE VIRTUAL HUNTING RANGE FOR THEIR SESSION ON VICIOUSNESS AND HEARTLESSNESS THE TOOLS OF THE '90S EQUIPPED WITH REAL AIR RIFLES AND BALLS OF WET COTTON WADDING WHICH MAKES A RESOUNDING SMACK WHEN IT HITS NAKED SKIN OUR GANG FANS OUT OVER THE COUNTRYSIDE TO HUNT FOR INSUFFICIENTLY PRODUCTIVE LIFE FORMS AS WELL AS ALL ANNOYING CREATURES WHO DO THINGS THE OLD WAY FAIL TO MAKE USE OF INTERORGANIZATIONAL SYNERGY OR INSIST ON PAYING ATTENTION TO ARCHAIC WORK RULES NEGOTIATED WHEN UNIONS HAD WAY TOO MUCH POWER HIGHERLEVEL FINANCIAL EXECUTIVES WILL FIND SOMEWHERE OUT ON THE VIRTUAL VELDT ONE OR TWO REPRESENTATIVES OF COMPETING COMPANIES ONCE BAGGED THESE CAN BE RIPPED TO PIECES AND SOLD FOR THE VALUE OF THEIR INDIVIDUAL BODY PARTS OUR CLASS NOW HAS ACHIEVED THE HIGHEST RANKS OF TRAINING AND IS READY TO REAP ITS RICH REWARD BIGTIME STATUS IN THE REAL WORLD OF TODAY AND MAYBE EVEN NEXT WEEK AS THEY RECEIVE THEIR DIPLOMAS OUR GRADUATES INADVERTENTLY PASS ONE LAST HURDLE LEARNING HOW TO MAKE THINGS WORK IN THE NEW GENDER ENVIRONMENT AT THE DANCE HELD ON THE LAST SATURDAY NIGHT AT THIS FABULOUS EVENT THEY MAY LOOK AT BUT NOT TOUCH ANYONE OF THE OPPOSITE SEX NO MATTER HOW MUCH EVERYBODY HAS BEEN DRINKING INDIVIDUALS WHO ARE EVEN PERCEIVED TO HAVE FAILED THIS TEST ARE DROPPED IN THE MIDDLE OF THE MOJAVE DESERT WITH AN EMPTY CANTEEN AND A TWEEZERS AND ENCOURAGED TO FIND A DIGNIFIED WAY OUT ON THE BUS HOME OUR HAPPY SINGING GROUP RECEIVES COMPLIMENTARY VIDEOTAPES ON TREMENDOUS EXIT BENEFITS AND HOW TO GET THEM WITH REMARKABLE FOOTAGE SHOT IN THE EXECUTIVEDEPARTURE LOUNGES OF SEVERAL MAJOR CORPORATIONS AT HOME AS THEY EMBRACE THEIR VERY SIGNIFICANT OTHERS THEY FIND A HUGE BOX IN THEIR LIVING ROOMS STUFFED WITH A COMPUTER HOME MODEM FAX AND INSTRUCTIONAL MATERIAL ON TRANSITIONING TO CONSULTANCY THAT'S RIGHT THEY'RE MIDDLE MANAGEMENT AND HAVING BEEN WELL TRAINED THEY'RE READY TO ESCAPE THE CORPORATION AND JOIN THE RANKS OF THOSE WHO DON'T SHOW UP ON HEADCOUNTS AND MAKE 10 TIMES MORE THAN REAL WORKING PEOPLE CONGRATULATIONS TO THEM AND TO YOU FOR GETTING RID OF THEM IN CLOSING ONE THING REMAINS TO BE NOTED OUR BELIEF THAT THE SUPERIORITY OF THIS PROGRAM WILL EXPLAIN ITS ADMITTEDLY EXTRAORDINARY COST TO THE CORPORATION WHEN CONSIDERING THE TOTAL PRICE TAG WE ARE SUGGESTING BE COMMITTED TO THE OVERALL TRAINING EFFORT WE URGE YOU TO REMEMBER THAT AN INVESTMENT IN THE TALENTED MANAGEMENT EMPLOYEE IS AN INVESTMENT IN TOMORROW OURS ANYHOW MR SCHWARTZ IS A WRITER AND BUSINESS EXECUTIVE IN NEW YORK CITY 9309100152 930910 FORD UNVEILS PRICE STRATEGY FOR '94 MODELS AVERAGE 22 RISE IS IN LINE WITH PUSH TO WIN BACK GROUND FROM JAPANESE BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO SAID IT IS RAISING THE BASE PRICE OF ITS 1994 MODEL VEHICLES FROM 09 ON ITS LEAST EXPENSIVE VEHICLES TO AS MUCH AS 133 ON ITS BESTSELLING FSERIES PICKUP BUT IN A MOVE TO JUMPSTART SALES OF ITS SLOWERSELLING VEHICLES THE NO 2 AUTO MAKER SLASHED THE PRICE OF ITS FORD CROWN VICTORIA LX BY 39 OVERALL FORD SAID ITS 1994 VEHICLES PRICES WILL RISE AN AVERAGE 22 FROM 1993 MODEL PRICES ADJUSTING FOR NEW STANDARD EQUIPMENT SUCH AS AIR BAGS FORD SAID THE AVERAGE 1994 MODEL PRICE INCREASE WOULD BE ONLY 02 FORD'S PRICING STRATEGY APPEARS TO BE IN LINE WITH PREVIOUSLY ANNOUNCED INCREASES BY GENERAL MOTORS CORP AND CHRYSLER CORP DETROIT'S PRICING STRATEGY SETS THE STAGE FOR A MAJOR SHOWDOWN IN THE LONGTERM BATTLE TO WIN A BIGGER SHARE OF THE US VEHICLE MARKET BACK FROM RIVAL JAPANESE AUTO MAKERS PUMMELED BY THE SURGING YEN THE MAJOR JAPANESE AUTO MAKERS HAVE INSTITUTED PRICE INCREASES THAT ON AVERAGE FAR OUTSTRIP THOSE SOUGHT BY DETROIT TOYOTA MOTOR CORP LAST WEEK ANNOUNCED IT WILL RAISE PRICES 25 TO 127 FROM INTRODUCTORY 1993 PRICES MAZDA MOTOR CORP HAS ANNOUNCED PRICE INCREASES RANGING FROM 18 TO 44 THE RESULT IS THAT BIG THREE PASSENGER CARS COST AN AVERAGE 2800 LESS THAN A COMPARABLE JAPANESE MODEL ANALYSTS SAY FOR EXAMPLE THE BASE PRICE OF A 1994 TAURUS GL IS 16140 UP 649 OR 42 OVER 1993 INTRODUCTORY PRICES THE 1994 TAURUS HOWEVER IS PRICED 3088 LESS THAN THE TOYOTA'S 1994 MODEL 19228 CAMRY LE AND THE TAURUS GL IS PRICED 1090 LESS THAN HONDA MOTOR CO'S REDESIGNED ACCORD LX FORD IS TRYING TO SEIZE UPON AN OPPORTUNITY TO WIN MORE BUYERS BACK THAT DEFECTED TO THE JAPANESE SAID CHRISTOPHER CEDERGREN AN AUTO ANALYST WITH AUTOPACIFIC GROUP INC SANTA ANA CALIF BUT HE ADDED FORD CHRYSLER AND GM ARE WALKING A FINE LINE OF TRYING TO INCREASE PROFITS AND KEEP PRICES INCREASES LOW ENOUGH TO INCREASE MARKET SHARE UNLIKE GM FORD STEERED AWAY FROM OFFERING A WIDER SELECTION OF VALUE PRICED MODELS ITS TAURUS GL WILL NOW COMPETE WITH A WELLEQUIPPED CHEVROLET LUMINA VALUEPRICED AT 15305 THAT'S 835 LESS THAN THE BASE TAURUS GL INSTEAD FORD IS EXPECTED TO EXPAND A STRATEGY OF PUSHING LOWPRICED SHORTTERM LEASES THAT BRING CUSTOMERS BACK TO SHOWROOMS EVERY TWO YEARS AND DESPITE FORD'S EFFORT TO PLAY DOWN ITS PRICE INCREASES YESTERDAY THE NO 2 AUTO MAKER CLEARLY HOPES TO CAPITALIZE ON THE MODEST US SALES RECOVERY PARTICULARLY IN THE LIGHT TRUCK MARKET WHERE JAPANESE COMPETITION IS MINIMAL FORD'S MOST AGGRESSIVE PRICE INCREASES CAME ON ITS TOPSELLING LIGHT TRUCKS FORD RAISED THE BASE ITS FSERIES SPECIAL 4X2 PICKUP THE TOPSELLING VEHICLE IN THE US TO 12772 UP 133 OR 1504 OVER THE 1993 INTRODUCTORY PRICE THE BASE PRICE OF ITS HOTSELLING EXPLORER XLT 4X4 SPORT UTILITY VEHICLE JUMPED 51 TO 22410 THAT'S 1092 HIGHER THAN THE 1993 INTRODUCTORY PRICE FORD'S STEEPEST PRICE INCREASE AMONG ITS PASSENGER CARS CAME ON THE FORD THUNDERBIRD UP 65 TO 16830 AND MERCURY COUGAR UP 95 TO 16260 FORD SAID THE PRICE INCREASES ON THOSE MODELS REFLECTED ADDITIONAL SAFETY EQUIPMENT AND OTHER FEATURES FORD IS ALSO CONTINUING ITS ONEPRICE STRATEGY FOR ALL ESCORT MODELS THE 1994 BASE PRICE HOWEVER IS 10550 UP 51 OR 509 OVER THE INTRODUCTORY 1993 PRICE FORD DIDN'T RELEASE PRICES FOR ITS NEW FORD MUSTANG WHICH WILL DEBUT DEC 9 ITS NEW FORD ASPIRE THE REPLACEMENT CAR FOR THE FORD TEMPO AND MERCURY TOPAZ AND VILLAGER MINIVAN FORD SAID THOSE PRICES WILL BE ANNOUNCED LATER BUT HAVE BEEN FACTORED INTO YESTERDAY'S ANNOUNCEMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FORD SHARES ROSE 1375 TO 52875 9309100151 930910 REVIEW & OUTLOOK EDITORIAL DISCHARGE DRAMA IT TOOK REP JIM INHOFE LESS THAN SEVEN MINUTES ON WEDNESDAY TO GATHER ENOUGH SIGNATURES ON THE HOUSE FLOOR TO FORCE A VOTE TO END SECRET DISCHARGE PETITIONS HOUSE LEADERS FAILED TO CONVINCE ANY MEMBERS TO REMOVE THEIR NAMES FROM MR INHOFE'S PETITION THE SHROUD OF CONGRESSIONAL SECRECY THAT ALLOWS MEMBERS TO SAY ONE THING BACK HOME WHILE DOING THE OPPOSITE ON CAPITOL HILL MAY SOON BE LIFTED THE LEADERSHIP HASN'T GIVEN UP OF COURSE IT WILL TRY TO SUBSTITUTE ITS OWN FAKE REFORM FOR MR INHOFE'S BUT HE IS NOW DUE A FLOOR VOTE ON HIS MEASURE SEPTEMBER 27 IF IT PASSES THE CONSEQUENCES COULD BE MOMENTOUS MEMBERS WILL FINALLY HAVE A REALISTIC WAY OF BRINGING POPULAR LEGISLATION TO THE HOUSE FLOOR EVEN IF THE LEADERSHIP WANTS TO BLOCK IT THE ADOPTION OF MR INHOFE'S MEASURE CAN BE VIEWED AS THE NECESSARY PREDICATE FOR ANY AND ALL FUTURE HOUSE REFORMS THAT ARE WORTHY OF THE NAME THERE WAS SOME REAL DRAMA AT NOON WEDNESDAY AS THE HOUSE ENDED ITS RECESS SOME 15 DEMOCRATS LINED UP TO SUPPORT REP INHOFE MORE THAN HALF WERE TURNED AWAY AFTER THE INHOFE PETITION WENT OVER THE TOP WITH THE 218TH SIGNATURE THAT OF REP MARJORIE MARGOLIESMEZVINSKY LAST MONTH SHE CAST THE CONTROVERSIAL FINAL VOTE THAT PASSED THE CLINTON BUDGET THIS TIME SHE APPARENTLY HAD NO CHOICE BUT TO GO WITH THE WISHES OF HER CONSTITUENTS RULES COMMITTEE CHAIRMAN JOE MOAKLEY WHOSE POWER DEPENDS ON MAINTAINING HOUSE SECRECY TRIED TO CONVINCE FRESHMEN DEMOCRATS NOT TO SIGN BUT EARLY WEDNESDAY WITH ROSS PEROT'S SUPPORTERS MOUNTING AN ALLNIGHT PROTEST VIGIL IN FRONT OF HIS HOME OFFICE HE THREW IN THE TOWEL HE TOLD A MEETING OF FRESHMEN DEMOCRATS THEY COULD SIGN IF THEY HAD TO NORMAN ORNSTEIN THE AMERICAN ENTERPRISE INSTITUTE'S BELTWAY SCHOLAR ACCOMPANIED REP MOAKLEY TO THE MEETING TO WARN THAT ENDING SECRECY WOULD ENHANCE THE POWER OF LOBBYISTS AND RESULT IN NEW LAWS THAT WOULD BUST THE BUDGET ONE FRESHMAN DEMOCRAT TOLD US MR ORNSTEIN'S ARGUMENTS DON'T SQUARE WITH WHAT I KNOW ABOUT THIS PLACE IN FACT THE CURRENT SYSTEM GIVES ENORMOUS POWER TO SPECIAL INTERESTS NOW THEY CAN MOVE THEIR AGENDA BY SIMPLY FOCUSING PAC DOLLARS ON A FEW KEY COMMITTEE CHAIRMEN WHO CONTROL THE FLOW OF LEGISLATION RECALL HOW THE COZY RELATIONSHIP BETWEEN THRIFTS AND HOUSE BANKING CHAIRMAN FERNAND ST GERMAIN SET OFF THE S&L CRISIS ROSS PEROT SUMMED UP HOW LOBBYISTS REALLY FEEL ABOUT HOUSE SECRECY AT A NEWS CONFERENCE AFTER MR INHOFE'S SUCCESS WHEN TOLD IT WAS RAINING HE QUIPPED THAT'S NOT RAIN THAT'S THE SOUND OF ALL THE SPECIAL INTERESTS INSIDE THE BELTWAY CRYING IN UNISON INDEED THE DISCHARGEPETITION BATTLE HAS DEMONSTRATED HOW AMERICAN POLITICS IS CHANGING IN THE ELECTRONIC ERA THE INHOFE VICTORY RESULTED FROM HUGE GRASSROOTS SUPPORT BACK HOME WHICH PREVAILED AGAINST A DETERMINED HOUSE LEADERSHIP BUT THE UNFOLDING BATTLE RECEIVED ZERO COVERAGE FROM THE NETWORKS AND WAS VIRTUALLY IGNORED BY MAJOR PAPERS SO HOW DID IT HAPPEN AFTER WE PUBLISHED THE LIST OF THOSE MEMBERS WHO DIDN'T BACK MR INHOFE'S REFORM IN MIDAUGUST AN ALTERNATIVE INFORMATION NETWORK CAME TO LIFE IT CONSISTED OF TALK SHOW HOSTS LED BY RUSH LIMBAUGH ROSS PEROT'S VOLUNTEERS AND GRASSROOTS GROUPS SUCH AS AMERICANS FOR TAX REFORM AND CITIZENS FOR A SOUND ECONOMY THEY SPREAD THE WORD BYPASSING THE PRESS TALK SHOWS HAVE BECOME A PRIME MEANS OF GETTING INFORMATION TO PEOPLE THAT THEY WOULDN'T OTHERWISE GET FROM TRADITIONAL MEDIA SOURCES REP PORTER GOSS A RULES COMMITTEE MEMBER WAS ASTONISHED THAT ALL OVER THE COUNTRY HE WAS ASKED ABOUT SOMETHING AS ARCANE AS DISCHARGE PETITION REFORM WE'RE HAPPY TO HAVE PLAYED A ROLE IN THIS PHENOMENON REP VIC FAZIO THE HOUSE CHAIRMAN KNOWN AS THE PRINCE OF PERKS ATTACKED THIS PAGE WEDNESDAY AS PART OF A VELVET TRIANGLE OF MINORITY HOUSE MEMBERS AND THINK TANKS THAT CONSTANTLY BEDEVIL CONGRESS OVER IN THE VICTORS' LOCKER ROOM ROSS PEROT SINGLED US OUT FOR PRAISE IN BOLD HEADLINES FOR BRINGING THIS REFORM TO THE ATTENTION OF THE AMERICAN PEOPLE WE HAVE PROFOUND DIFFERENCES ON TRADE WITH ROSS PEROT BUT IT'S EVIDENT THAT HE GENERALLY ARTICULATES THE FRUSTRATIONS OF A LARGE NUMBER OF VOTERS WHO ARE FED UP WITH THE WASHINGTON ESTABLISHMENT THIS WEEK PEROT SUPPORTERS HELPED MAKE A REAL CONTRIBUTION TO OPENNESS IN GOVERNMENT AND THEY NOW PROMISE TO GO ON RED ALERT TO MAKE SURE MR INHOFE'S REFORM IS IMPLEMENTED INTACT IF THE PEROT MOVEMENT EVER MADE CLEANING UP CONGRESS ITS TOP PRIORITY THERE IS NO TELLING WHAT IT COULD ACCOMPLISH FOR THE COUNTRY THE DISCHARGE BATTLE SHOWED THAT BEATING THE BELTWAY IS INDEED POSSIBLE 9309100150 930910 POLITICS & POLICY SENATE PUTS CLINTON ON NOTICE TO DEFINE POLICY ON SOMALIA BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE FIRED A WARNING SHOT ACROSS THE BOW OF THE CLINTON ADMINISTRATION'S SOMALIA POLICY BUT STOPPED SHORT OF SETTING A DEADLINE FOR A US WITHDRAWAL THE SUDDEN TWODAY SENATE REBELLION AGAINST THE STAY THE COURSE POLICY OF HELPING TO STABILIZE THE AFRICAN COUNTRY CONCLUDED LATE LAST NIGHT WITH APPROVAL OF A NONBINDING RESOLUTION CALLING ON THE ADMINISTRATION TO PROVIDE BY OCT 15 A REPORT ON ITS GOALS AND OBJECTIVES IN SOMALIA THEN IT ASKS THE PRESIDENT TO SEEK CONGRESSIONAL APPROVAL BY NOV 15 FOR ANY CONTINUED US PRESENCE THERE THE RESOLUTION ALSO ASKS THE ADMINISTRATION TO REPORT ON THE PLANNED DURATION AND SIZE OF THE US MILITARY MISSION IN SOMALIA AND UNDERSCORING WIDESPREAD CONGRESSIONAL DISSATISFACTION WITH THE WAY THE UNITED NATIONS HAS HANDLED EVENTS IN SOMALIA IT ASKS THAT THE PRESIDENT EXPLAIN THE COMMAND ARRANGEMENTS GOVERNING US FORCES THERE WE'RE GOING TO FORCE A SHOWDOWN ON THIS ONE WAY OR ANOTHER SAID SEN ROBERT BYRD THE LEADER OF REBELLION HE SAID HE THINKS US TROOPS WILL HAVE TO PULL OUT IF CONGRESS DOESN'T AUTHORIZE CONTINUED OPERATIONS THE WEST VIRGINIA DEMOCRAT ORIGINALLY HAD SOUGHT TO EFFECTIVELY REQUIRE THE US TO WITHDRAW BY THE END OF NEXT MONTH UNLESS CONGRESS SPECIFICALLY AUTHORIZED CONTINUING THE MISSION BUT MANY IN THE SENATE WERE UNCOMFORTABLE WITH SETTING SUCH A DEADLINE SO QUICKLY YET EVEN OPPONENTS OF THE ORIGINAL BYRD AMENDMENT AGREED THAT THE US MISSION HAS BEEN TOO OPENENDED AND HAZILY DEFINED NEWS REPORTS FROM MOGADISHU THE SOMALI CAPITAL SAID US HELICOPTER GUNSHIPS KILLED DOZENS OF RESIDENTS INCLUDING MANY WOMEN AND CHILDREN DESCRIBED BY A US MILITARY SPOKESMAN AS COMBATANTS WE WENT TO SOMALIA TO KEEP PEOPLE FROM STARVING TO DEATH SAID SEN JOHN MCCAIN R ARIZ NOW WE ARE KILLING WOMEN AND CHILDREN AS COMBATANTS IT'S GOT TO STOP IN MANY WAYS THE DEBATE OVER SOMALIA WAS A PRELUDE FOR ENGAGING THE ADMINISTRATION OVER ITS PLANS TO SEND MORE THAN 20000 PEACEKEEPERS TO BOSNIA IF A PEACE AGREEMENT IS REACHED THERE A MISSION TO THE BALKANS WOULD BE FAR MORE DIFFICULT THAN SOMALIA HAS BEEN BUT THE ADMINISTRATION HASN'T CLEARLY EXPLAINED ITS RATIONALE FOR EITHER COMMITMENT DEFENSE SECRETARY LES ASPIN RECENTLY LAID OUT THE US GOALS IN SOMALIA BUT DIDN'T EXPLAIN WHY THOSE GOALS ARE IMPORTANT 9309100149 930910 REVIEW & OUTLOOK EDITORIAL THE PERILS OF PEACE THE EUPHORIA IS BUILDING OVER THE SCHEDULED MONDAY SIGNING IN WASHINGTON OF A PEACE AGREEMENT BETWEEN ISRAEL AND THE PLO WE COULDN'T HELP BUT NOTICE HOWEVER THAT NEWS REPORTS ALSO SAID THAT THE FULL DETAILS OF THE AGREEMENT WOULDN'T BE REVEALED BY THE SIGNING PARTIES UNTIL SOMETIME TODAY THUS THE PLAN IS A HIGHRISK LEAP FOR ISRAELIS WITH ONLY A SHORT TESTING TIME TO SEE IF THE PLO IS UP TO GOVERNING THE TREATY OFFERS NO WAY BACK IF THE EXPERIMENT DOESN'T WORK THIS DOESN'T MEAN WE SHOULD DISMISS THE AGREEMENT FLAT OUT BUT MERELY THAT THE RUSH TO EMBRACE THE PLAN BY GOVERNMENTS PUNDITS AND ORGANIZATIONS WAS MORE IN THE NATURE OF A MANIA THAN A CAREFUL INVESTIGATION OF THE INNERWORKINGS NONETHELESS THE MAIN ARGUMENTS OF THE LEADING ISRAELI CRITICS OF THE PLAN ARE NOT AUTOMATICALLY PERSUASIVE THEY POINT OUT CORRECTLY THAT IN NINE MONTHS THE PLO WILL CONTROL THE HILLS 10 MILES FROM TEL AVIV AND TWO MILES FROM JERUSALEM BUT THE PLAN NEED NOT PRESENT A MORTAL THREAT TO ISRAEL ISRAEL KEEPS CONTROL OF EXTERNAL DEFENSES INCLUDING BASES ON THE JORDAN RIVER AND ON THE MAJOR EASTWEST ROADS THE DOCUMENT DOES NOT ENVISION A PLO ARMY THE REAL RISK OF THE PLAN IS THE POSSIBILITY OF CHAOS AND TERROR THE RUSH IN THE ISRAELI FOREIGN MINISTRY TO REACH AN AGREEMENT SEEMS TO HAVE GROWN FROM THE FEELING THAT THE PLO WAS ABOUT TO CRUMBLE INTO DUST WITH CHAOS DEEMED WORSE THAN ARAFAT BUT THE BOOST THE PLO WOULD RECEIVE FROM THE AGREEMENT INCLUDING AN ACTIVE RELATIONSHIP WITH THE CLINTON ADMINISTRATION MAY NOT BE ENOUGH TO ALLOW IT TO SMASH ITS PALESTINIAN ENEMIES OR ITS INTERNAL CORRUPTION THE PLO REGULARLY LOSES ELECTIONS IN THE GAZA STRIP AND WEST BANK TO HAMAS THE FUNDAMENTALIST GROUP DEDICATED TO THE DESTRUCTION OF ISRAEL AND SECULAR ARAB REGIMES PALESTINIAN LEADERS SAY THEY WILL BUILD A POLICE FORCE OF UP TO 30000 TRAINED IN OTHER ARAB COUNTRIES STILL DISORDER COULD BE EXACERBATED BY THE ARRIVAL OF HUNDREDS OF THOUSANDS OF CURRENTLY DISPLACED PALESTINIANS AN ISSUE FUDGED IN THE AGREEMENTS ASTONISHINGLY THERE WERE NO ISRAELI SECURITY EXPERTS AT THE OSLO NEGOTIATIONS ISRAELI GENERALS HAVE BEEN ALARMED AT THE PLAN'S ACADEMIC QUALITY THE ISRAELI CHIEF OF STAFF USUALLY AN ALLY OF PRIME MINISTER RABIN DECLARED THAT THE PLAN POSES SERIOUS RISKS ZEEV SCHIFF ONE OF ISRAEL'S MOST RESPECTED SECURITY EXPERTS HAS POINTED TO NUMEROUS PROBLEMS WHAT HE ASKS IF THE PLO LETS ANTIISRAELI TERRORISTS ROAM FREELY IN THEIR TERRITORY THERE IS NO MENTION OF WHETHER OR HOW ISRAEL AND THE PLO WILL COORDINATE ANTITERROR EFFORTS THERE IS NO AGREEMENT ON WHETHER ISRAELIS CAN PURSUE TERRORISTS BACK ONTO PLO TURF WHAT WEAPONS WILL PLO POLICEMEN CARRY IN ADDITION THERE IS NO CLEAR DEFINITION OF HOW ISRAELI DRIVERS WILL BE SECURE AS THEY PASS THROUGH THE TERRITORIES ON THEIR WAY SAY FROM JERUSALEM TO GALILEE THERE'S NO EXPLANATION OF HOW JEWISH SETTLEMENTS WILL BE PROTECTED OR WHAT POWERS PLO POLICE FORCES WILL HAVE OVER ISRAELIS IF THE EXILED PLO PROFESSORS ARE UNABLE TO CREATE A STABLE COUNTRY ISRAEL WILL BE TEMPTED TO TAKE BACK THE LAND SOME OF THOSE RAISING CONCERNS DON'T WANT TO SCOTCH THE WHOLE AGREEMENT BECAUSE THE UPSIDE POSSIBILITIES OF THE PLAN ARE CORRESPONDINGLY HUGE ISRAEL COULD REDUCE ITS DEFENSE EXPENDITURE ISRAELI BUSINESSES ENVISION REGIONAL VENTURES TERRORISM SHOULD IT COME WOULD FINALLY HAVE AN ADDRESS MOST OF ALL PEACE IS A WONDERFUL THING NO WONDER SO MANY ISRAELI HAWKS ARE WILLING TO TAKE THE RISK IN THE END THE IMPORTANT BARRIERS MAY NOT BE ON PAPER BUT IN THE MENTALITIES OF THE TWO PEOPLES THE PAST WEEKS HAVE SEEN A REVOLUTION IN ISRAELI THINKING PLO LEADERS ARE NOW FEATURED GUESTS ON ISRAELI TV BUT THE PALESTINIANS WHO DANCED ON THE ROOFTOPS AS THE SCUDS RACED OVERHEAD AND WHO IDOLIZE SADDAM HUSSEIN HAVE SHOWN SCANT EVIDENCE OF ANY CHANGE OF THINKING ANYBODY WHO KILLS A JEW STILL A FREQUENT EVENT IS LIONIZED ARAFAT HAS RENOUNCED TERROR BEFORE AND KEPT ON SPONSORING IT AS FOR OURSELVES WE ARE SKEPTICAL OF THE PLAN AS IS BUT WILLING TO BE WON OVER IF THE NEXT FEW WEEKS PRODUCE IMPROVEMENTS IN THE AGREEMENT AND IF THE PALESTINIAN PEOPLE THEMSELVES ACCEPT THEIR ISRAELI NEIGHBORS OBVIOUSLY MUCH GOOD WILL HAS BEEN BROUGHT FORTH BY THIS AGREEMENT HISTORY WORKS IN UNPREDICTABLE WAYS AND THERE'S ROOM FOR A PLEASANT SURPRISE BUT THOSE WITH RESERVATIONS CAN'T BE DISMISSED AS ANTIPEACE A CLOSE LOOK SUGGESTS THIS MAY NOT BE THE MEASURE THAT CUTS THE GORDIAN KNOT THE GOAL IS WORTHY THE DETAILS MATTER 9309100148 930910 EXECUTIVE EDUCATION A SPECIAL REPORT SELLING THE SCHOOLS CAVIAR U LIFE AT EXECUTIVETRAINING COURSES ISN'T ALL THAT HARD TO GET USED TO BY DAVE KANSAS HARRIMAN NY SIPPING ON A FINE WINE NIBBLING ON SHRIMP UDON WATCHING BIRDS FROLIC THROUGH THE TREES OF THE RAMAPO MOUNTAINS THAT'S WHAT SCHOOL OUGHT TO BE LIKE AND AT COLUMBIA UNIVERSITY'S ARDEN HOUSE RETREAT IT IS DINGY DORM ROOMS AND WARMEDOVER CAFETERIA FOOD DON'T ATTRACT VERY HIGHCLASS CLIENTELE ANYMORE INSTEAD IT'S FOURSTAR DINING PRIVATE ROOMS AND TWICEDAILY MAID SERVICE FOR TODAY'S HARDSTUDYING EXECUTIVES STUDENTS IN COLUMBIA UNIVERSITY'S MBA PROGRAM FACE A GRITTY URBAN CAMPUS ON THE EDGE OF POVERTYSTRICKEN HARLEM BUT COLUMBIA'S EXECUTIVEEDUCATION PUPILS RECEIVE ROYAL TREATMENT AT ARDEN HOUSE A MOUNTAINTOP MANSION NEAR THIS UPSTATE NEW YORK TOWN ORIGINALLY OWNED BY WEALTHY RAILROAD MAGNATE EH HARRIMAN ARDEN HOUSE IS NOW USED PRIMARILY TO EDUCATE AND PAMPER EXECUTIVES HOW ABOUT SOME TENNIS ON COURTS OVERLOOKING CRANBERRY LAKE PERHAPS A DIP IN THE OUTDOOR POOL STILL BORED TRY THE SCULPTURE GARDEN THE HIKING TRAIL MAYBE EVEN HEAD OFF TO CLASS THERE'S NO GOLF COURSE BUT THE STAFF WILL GLADLY CHAUFFEUR YOU TO NEARBY LINKS BOO OF COURSE THE RUSTIC TURNOFTHECENTURY BUILDING HAS ITS QUIRKS SOME STUDENTS REPORT THAT THE BUILDING IS HAUNTED AND ENTERPRISING STAFFERS KEEP A LOGBOOK OF THE POLTERGEISTS IN 1908 MR HARRIMAN DIED IN THE STILLUNFINISHED HOUSE COLUMBIA HOWEVER INSISTS THAT THE BUILDING ISN'T HAUNTED ARDEN HOUSE'S ELEGANCE IS NO ABERRATION PLUSH PILLOWFLUFFING TREATMENT IS THE ORDER OF THE DAY AT MANY EXECUTIVEEDUCATION PROGRAMS WHILE BUSINESS SCHOOLS INSIST THAT A GOOD EDUCATIONAL PROGRAM IS THE KEY TO A SUCCESSFUL COURSE THEY ALSO CONCEDE THAT LUXURY DOESN'T HURT AND BESIDES THEY SAY COMPANIES PAY FOR THE LUXURY AT COLUMBIA FOR INSTANCE THE PRICE FOR A ONEWEEK COURSE IS A HEFTY 4250 STILL IT DOES SEEM AT TIMES AS THOUGH THE SCHOOLS PAY AT LEAST AS MUCH ATTENTION TO THE WINE LIST AS TO THE COURSE LIST THE UNIVERSITY OF PENNSYLVANIA IN PHILADELPHIA FOR INSTANCE SPENT 26 MILLION TO BUILD ITS OPULENT STEINBERG CENTER FOR EXECUTIVE EDUCATION IN 1987 AND DUKE UNIVERSITY IN DURHAM NC PLUNKED DOWN 15 MILLION TO BUILD ITS R DAVID THOMAS EXECUTIVEEDUCATION CENTER IN 1989 MEANWHILE THE UNIVERSITY OF VIRGINIA IN CHARLOTTLESVILLE PLANS TO SPEND 30 MILLION BY 1996 TO CONSTRUCT LIVING QUARTERS AND NEW CONFERENCE FACILITIES AND CASE WESTERN RESERVE UNIVERSITY'S WEATHERHEAD SCHOOL OF MANAGEMENT PLANS TO SPEND 75 MILLION ON ITS NEW EXECUTIVEEDUCATION FACILITY IN CLEVELAND BUT CUSHY CLASSROOMS AND DOWN COMFORTERS DO NOT GUARANTEE A MONEYMAKER EVEN PENN CONCEDES THAT PAYING FOR ITS CENTER HAS BEEN DIFFICULT DESPITE A JAMMED PROGRAM SCHEDULE AT ITS ARESTY INSTITUTE FOR EXECUTIVE EDUCATION LOCATED IN THE STEINBERG CENTER IT'S WORKED OUT OK BUT IT HASN'T BEEN AS ROSY AS WE THOUGHT IT WOULD BE SAYS VICE DEAN AND DIRECTOR OF EXECUTIVE EDUCATION ROBERT E MITTELSTAEDT MR MITTELSTAEDT WON'T ELABORATE ON PENN'S DIFFICULTIES BUT SAYS IN ANY BUSINESS WHERE YOU MAKE A SUBSTANTIAL CAPITAL INVESTMENT YOU NEED TO BE CAREFUL TO ENSURE THAT WITH NORMAL SWINGS IN THE BUSINESS CYCLE YOU'RE GOING TO BE ABLE TO HANDLE THE REPAYMENT OF THAT INVESTMENT MANY SCHOOLS LOOKING AT BUILDING THESE CENTERS BELIEVE THAT IT'S A PANACEA AND FORGET THAT THESE KINDS OF THINGS ARE SUBJECT TO NORMAL BUSINESS CYCLES AND SWINGS PENN'S STEINBERG CENTER LIKE SO MANY OF THE NEW WAVE OF EXECUTIVE CENTERS HAS ITS OWN ART COLLECTION SAUNA FULLY STOCKED BAR AND TELEVISION ROOMS MOST CENTERS WILL STOP AT NOTHING TO PLEASE STUDENTS FROM THE WELLHEELED EXECUTIVE SET IF THEY ASK FOR IT WE'LL DO WHATEVER WE CAN TO GET IT SAYS JAMES R GILLIGAN A MANAGER OF COLUMBIA'S EXECUTIVEEDUCATION PROGRAM MR GILLIGAN HAS DISPATCHED STAFFERS TO A NEARBY VILLAGE TO SECURE FISHING CREDENTIALS FOR OUTOFTOWN VISITORS ARRANGED A KARAOKE NIGHT SINGALONG AND ONCE FOUND A GUITAR AMONG HIS STAFF TO LEND TO AN INSOMNIAC BUSINESS STUDENT NORTHWESTERN PROVIDES SEVERAL PERKS AT ITS ALLEN CENTER SITUATED ON THE SHORE OF LAKE MICHIGAN ALONG WITH THE USUAL AMENITIES OUTSTANDING FOOD AND GOOD CUSTOMER SERVICE THE FACILITY JUST NORTH OF CHICAGO USUALLY PROVIDES A GOOD VIEW OF THE LAKE BUT NOT ALWAYS WHEN I WENT IT WAS FREEZING COLD AND WE HAD ICE STORMS SAYS LINDA HAGERTY A MANAGER AT CAREMARK INC A LINCOLNSHIRE ILL HEALTHCARE SERVICE COMPANY BUT IT COULD'VE BEEN A NICE VIEW ESPECIALLY IN THE SUMMER SOUTHERN SCHOOLS NEEDN'T WORRY SO MUCH ABOUT THE WEATHER AND THEY OFTEN TAKE ADVANTAGE OF THAT DUKE UNIVERSITY FOR INSTANCE HAS A GOLF COURSE PRACTICALLY ACROSS THE STREET FROM ITS R DAVID THOMAS CENTER SOME FOLKS MAY DEBATE THE ATHLETIC NATURE OF GOLF BUT IT ALONG WITH OTHER SPORTING AND FITNESS ACTIVITIES HAVE BECOME MORE IMPORTANT TO THE EXECUTIVE CENTERS BOOZING IS DOWN SAY DIRECTORS AND BEEFCAKES ARE UP I USUALLY COME BY THE FITNESS CENTER IN THE MORNING AND THE PLACE IS FULL SAYS PENN'S MR MITTELSTAEDT EXECUTIVES LIKE MUCH OF THE COUNTRY HAVE BECOME MORE CONCERNED ABOUT THEIR HEALTH BUT HE ADDS EVEN THOUGH WE PUT OUT MORE FRESH FRUIT NOW THE CHOCOLATE CHIP COOKIES ARE ALWAYS THE FIRST TO GO TYPICAL OF THOSE CENTERS OFFERING FITNESS FACILITIES PENN'S STEINBERG CENTER OFFERS A WORKOUT ROOM FILLED WITH A STABLE OF STAIRMASTERS A ROWING MACHINE A NORDICFLEX GOLD SKIING MACHINE MACHINE WEIGHTS PINGPONG TABLE SAUNA AND A FRUITJUICE DISPENSER SOME FACILITIES SUCH AS COLUMBIA'S ARDEN HOUSE ALSO OFFER OUTDOOR SWIMMING AND TENNIS AND BASKETBALL COURTS MOST CENTERS HAVE TRAINED CHEFS AND BAKERS AND THE MENU IS PACKED WITH OPTIONS STUDENTS HAVE TO SLUM A LITTLE DURING BREAKFAST AND LUNCH SERVING THEMSELVES BUFFET STYLE BUT DINNER IS ANOTHER THING AFTER A LONG DAY TOILING IN THE AIRCONDITIONED CLASSROOMS STUDENTS BECOME CHIC COUNTRY CLUBBERS FOR THE EVENING MEAL WHICH USUALLY FEATURES WAITER SERVICE CHOICE OF ENTREES WINE LISTS DESSERTS AND SOMETIMES ENTERTAINMENT AT THE UNIVERSITY OF MICHIGAN'S EXECUTIVE EDUCATION CENTER A RECENT MEAL OFFERED THE FOLLOWING ENTREES VEALWRAPPED BEEF TENDERLOIN SERVED WITH DIJONSHALLOTS SAUCE CHICKEN BREAST WITH HERBS LIGHTLY SEASONED AND BAKED ROAST PORK LOIN ROASTED WITH APPLES AND ONIONS BASTED WITH SHERRY OR SHRIMP UDON MADE WITH JAPANESE WHEAT NOODLES IN A LIGHT FATFREE BROTH GARNISHED WITH SHRIMP AND GREEN ONIONS AND DON'T FORGET THE SCALLOPS APPETIZER OR THE POSTMEAL ESPRESSO COLUMBIA WHICH TRIES TO INCLUDE NATIVE DISHES FOR INTERNATIONAL STUDENTS HAS FOUND ITSELF CALLING EMBASSIES FOR RECIPES JAMES TUOHY DIRECTOR OF ARDEN HOUSE'S FOOD AND BEVERAGE SERVICE ONCE CONJURED UP A MEAL OF BOBOTIE A BAKED MEATLOAF WITH CUSTARD AND NUTS FOR SOME SOUTH AFRICAN STUDENTS DUKE UNIVERSITY OF PENNSYLVANIA AND SEVERAL OTHER SCHOOLS PROVIDE INTENSELY RICH DINING FARE I USUALLY DON'T EAT ANYMORE WHEN I'M UP HERE SAYS MR GILLIGAN ABOUT THE COOKING AT COLUMBIA'S ARDEN HOUSE I'M NOT SELFDISCIPLINED ENOUGH IF I SIT DOWN TO EAT I JUST KEEP ON EATING CUSTOMER SERVICE IS KING AT THE EDUCATION CENTERS MOST OFFER FAX SERVICES MAID SERVICE COMPUTERHELP SERVICES AND JUST ABOUT ANY SERVICES A GUEST MIGHT DESIRE COLUMBIA HAS SENT KITCHEN WORKERS DEEP INTO BROOKLYN TO FIND FOREIGN BEER PETER BYRNES PRESIDENT OF WINCHESTER HOMES A HOMEBUILDING COMPANY IN CALVERTON MD RECALLS THAT A LARGE STORM NEARLY DESTROYED HIS TOUR OF PHILADELPHIA WHILE HE WAS STUDYING AT THE UNIVERSITY OF PENNSYLVANIA'S EXECUTIVEEDUCATION CENTER THE STORM JUST CAME OUT OF NO PLACE RECALLS MR BYRNES VERY FEW PEOPLE HAD PLANNED FOR THAT SO WE DIDN'T HAVE ANY UMBRELLAS AND JUST LIKE THAT THE SCHOOL HAD STAFFERS WITH SCORES OF UMBRELLAS FOR US IT WAS REALLY AMAZING MR KANSAS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9309100147 930910 EXECUTIVE EDUCATION A SPECIAL REPORT SELLING THE SCHOOLS TEACHER TEACH THYSELF A CHANGING MARKET IS FORCING BUSINESS SCHOOLS TO RETHINK THEIR COURSES AND THEIR MARKETING BY ANN DE ROUFFIGNAC HANOVER NH IN THIS LEAFY NEW ENGLAND VILLAGE DARTMOUTH COLLEGE'S AMOS TUCK SCHOOL HAS LONG TAUGHT SUCH MARKETING CONCEPTS AS THE PRODUCTLINE EXTENSION NOW TUCK HOPES IT LEARNED A COUPLE OF THINGS ITSELF ALONG THE WAY THE SCHOOL'S CHALLENGE IS CLEAR REFORMULATE ITS EXECUTIVEEDUCATION PROGRAMS IN THE FACE OF A CHANGING MARKET AND INCREASED COMPETITION SO FAR IT HAS INTRODUCED NEW CRAM COURSES THAT ARE 75 SHORTER AND CHEAPER THAN THE SCHOOL'S TRADITIONAL FOURWEEK VERSION IT HAS DEVISED NEW OFFERINGS THAT IT FEELS ARE MORE IN TUNE WITH CURRENT MANAGEMENT ISSUES AND IT HAS REVAMPED ITS MARKETING STRATEGY CHANGING EVERYTHING FROM THE WAY IT FINDS POTENTIAL STUDENTS TO THE BROCHURES IT SENDS OUT TO LURE THEM IT ISN'T AN EASY SELLING JOB IN AN ERA OF CORPORATE CUTBACKS AND DWINDLING JOB SECURITY EXECUTIVE EDUCATION IS A PRODUCT THAT NO LONGER FLIES OFF THE SHELF THE WAY IT ONCE DID MOREOVER COURSES THAT DEMAND A MAJOR TIME COMMITMENT ARE MUCH TOUGHER TO PROMOTE AS A RESULT ALL PROVIDERS ARE FINDING THEY HAVE TO RETHINK THEIR PROGRAMS THE GLORY DAYS ARE OVER SAYS JOHN SHANK A TUCK PROFESSOR OF ACCOUNTING AND MANAGEMENT CONTROL IF A MANAGER CAN LEAVE HIS POSITION THAT LONG THEN IN TODAY'S BUSINESS ATMOSPHERE THE COMPANY MIGHT CONCLUDE IT CAN GET ALONG PERMANENTLY WITHOUT THAT MANAGER BUT EXECUTIVEEDUCATION PROVIDERS ACROSS THE COUNTRY THINK THE POTENTIAL PAYOFF IS WORTH THEIR EFFORTS TO REVAMP THEIR COURSES CONSIDER THE NUMBERS AT TUCK ITS EXECUTIVEEDUCATION PROGRAMS BRING IN ABOUT 15 MILLION A YEAR 23 OF THE BUSINESS SCHOOL'S TUITION REVENUE OF 64 MILLION THE PRICE TAG FOR A FOURWEEK TUCK COURSE IS 16500 PER STUDENT INCLUDING ROOM AND BOARD AN AMOUNT EQUAL TO 80 OF THE TAB PAID BY A DARTMOUTH UNDERGRADUATE FOR AN ENTIRE ACADEMIC YEAR THE ONEWEEK COURSE COSTS 4200 MOREOVER WITH ACCESS TO THE COLLEGE'S FACULTY AND FACILITIES THE TUCK COURSE'S OVERHEAD STAYS LOW SO WHILE THE SCHOOL WON'T DISCLOSE ITS PROFIT MARGIN SOME EDUCATION OFFICIALS ESTIMATE IT IS IN THE RANGE OF 30 TO 40 IN FACT TUCK'S PROBLEMS AND ITS STRUGGLE TO OVERCOME THEM IS ILLUSTRATIVE OF WHAT'S HAPPENING AT MANY SCHOOLS ENROLLMENT FOR TUCK'S ORIGINAL FOURWEEK COURSE PEAKED RIGHT BEFORE THE OCTOBER 1987 STOCKMARKET CRASH AND THEN BEGAN A LONG GRADUAL SLUMP IN 1988 THE PROGRAM ATTRACTED 100 MANAGERS BY 1992 ENROLLMENT HAD FALLEN TO 50 DURING THAT PERIOD MUCH TOUGHER COMPETITION EMERGED FROM OTHER TOP SCHOOLS AND TUCK'S OWN REPUTATION SLIPPED WE WERE MILKING AND COASTING SAYS PROF SHANK OUR PROGRAM WASN'T REALLY VERY INNOVATIVE SO THE SCHOOL DECIDED TO FIGHT BACK THE FIRST STEP WAS TO BEGIN OFFERING MORE SPECIALIZED CURRICULA IN VARIOUS FIVEDAY MINICOURSES THE NEW SMALL COURSES PROVED POPULAR TUCK'S ENROLLMENT IN THE SHORTER COURSES INCREASED TO 145 LAST YEAR FROM 98 IN 1988 HELPING THE SCHOOL MAINTAIN THE 15 MILLION IN EXECUTIVEEDUCATION REVENUE DESPITE THE DROP IN ENROLLMENT IN THE LONGER COURSES THEN IN EARLY 1992 SOME DARTMOUTH PROFESSORS BEGAN TO WORRY THAT THEIR EXECUTIVE COURSE TOPICS HAD BECOME CLICHES A HALF DOZEN OF THEM GATHERED IN AN OFFICE ONE WINTER AFTERNOON FOR AN INFORMAL RAP SESSION THEY TALKED ABOUT HOW DRASTICALLY THE CONTENT OF TUCK'S REGULAR MBA PROGRAMS HAD CHANGED NEW TRENDS AND CONCEPTS WERE BEING TAUGHT INCLUDING ACTIVITYBASED COSTING STRATEGIC ALLIANCES AND CORE COMPETENCIES BUT THE EXECUTIVE PROGRAM HADN'T KEPT UP THE PROFESSORS STARTED COUNTING ALL THE NEW SUBJECTS THEY PROBABLY SHOULD HAVE BEEN OFFERING TO EXECUTIVES AND THEIR PROSPECTIVE COURSE LIST QUICKLY REACHED 15 THAT WAS TOO LONG FOR A ONEWEEK SESSION SO THEY ELECTED TO GIVE EXECUTIVES A CHOICE OF TWO SEPARATE PROGRAMS EACH OFFERED FOR FIVE DAYS ONCE OR TWICE A YEAR DEPENDING ON DEMAND PRICED AT 4200 EACH THE TWO SERIES ARE TAUGHT BY THE SAME CORE GROUP OF A DOZEN PROFESSORS TO GET STARTED TUCK OFFICIALS CHOSE TO TARGET THE NATION'S 600000 BUSINESSSCHOOL GRADUATES WHOSE DEGREES WERE AT LEAST 10 YEARS OLD THEY SETTLED ON A BASIC SALES PITCH TO TEASE THESE GRADUATES INTO WONDERING WHETHER THEIR DEGREES WERE OUT OF DATE PROF SHANK WHO IS GENERALLY CREDITED WITH THE IDEA FOR THE NEW PROGRAM ALSO CAME UP WITH ITS TITLE MBA UPDATE 2000 THE NAME WAS INTENDED TO IDENTIFY THE TARGET GROUP OF EXECUTIVE STUDENTS IT ALSO ALLUDES TO THE COMING MILLENNIUM TO REMIND THEM THAT THEIR DIPLOMAS ARE YELLOWING PAUL ARGENTI A TUCK PROFESSOR OF COMMUNICATIONS SUGGESTED NAMING THE COURSE TEN YEARS AFTER REMINISCENT OF THE POPULAR ROCK GROUP HIS IDEA WAS REJECTED THAT WAS TOO RADICAL FOR THIS PLACE HE SAYS DARTMOUTH DECIDED TO MARKET MBA UPDATE AS AN ADVANCED CLASS A PRESTIGIOUS OPPORTUNITY FOR MANAGEMENT TRAINING UPDATE WAS DESIGNED FROM THE OUTSET FOR EXECUTIVES WHO ALREADY HAVE BLOCKING AND TACKLING SKILLS OF BUSINESS SAYS MARIE EITER THE SCHOOL'S DIRECTOR WITH THE NEW PLAN CAME A NEW BROCHURE SOMETHING TUCK HADN'T BOTHERED WITH FOR YEARS THE OLD VERSION PROBABLY FAILED TO CAPTURE DARTMOUTH'S CHARACTER AND IDENTITY THE NEW ONE ACCENTUATED THE SCHOOL'S OFFICIAL COLOR GREEN AND ITS COVER DEPICTED THE GIANT GEORGIAN COLUMNS SO DISTINCTIVE TO THE CAMPUS IN ADDITION THE NEW BROCHURE LISTED TOPICS THAT SOUNDED MORE CURRENT AND ACTIONPACKED SUCH AS THE RISE OF STRATEGIC COST MANAGEMENT EMERGENCE OF A SERVICE ECONOMY CAPTURING GLOBAL COMPETITIVENESS AND BUILDING HIGHPERFORMANCE CULTURES IN THE EARLY SUMMER OF 1992 TUCK OFFICIALS IDENTIFIED MARKETS TO TARGET BY USING HOT LISTS OF EXECUTIVES SUCH AS SUBSCRIBERS TO THE HARVARD BUSINESS REVIEW THEY MAILED 90000 BROCHURES AT A COST OF ABOUT 42000 THE CAMPAIGN'S RESULT WAS JUDGED A FLOP IT BROUGHT A MERE 34 RESPONSES NOW TUCK IS DOING MORE HOMEWORK TO FIND BETTER SOURCES FOR PROSPECTS PROF ARGENTI SAYS THE SCHOOL IS SEARCHING FOR A NATIONAL LIST CONSISTING ONLY OF MBAS I'D BE IN HEAVEN IF I COULD FIND THAT LIST HE SAYS AS A FURTHER INDICATOR OF THE NEW SENSITIVITY TO MARKETING AT TUCK SCHOOL OFFICIALS ARE CONSIDERING YET ANOTHER NAME CHANGE FOR THE COURSE THEY MAY DECIDE TO CALL IT MANAGEMENT UPDATE TO RID THEMSELVES OF THE MBA MONIKER IN MANY OF COMPANIES WHERE TUCK IS RECRUITING THE MBA LABEL DOESN'T HAVE THE STATURE IT ONCE DID SAYS PROF SHANK COMPANIES DON'T WANT TO ANOINT THESE GUYS AND HAVE THEM RULE THE WORLD ANYMORE NOW THAT TUCK OFFICIALS ARE IN A MARKETING MOOD THEIR BROCHURE MAY SOON BE CHANGED AGAIN THE SCHOOL IS DESIGNING A FANCIER FOLDER THAT CONTAINS EVEN BETTER PICTURES OF THE CAMPUS THE CURRENT BROCHURE DESCRIBES THE PROGRAM ADEQUATELY BUT DOES NOT CONVEY A GOOD PICTURE OF DARTMOUTH'S AMBIANCE MS EITER SAYS TUCK OFFICIALS ARE ALSO REALIZING THAT THEY MUST SELL THE DARTMOUTH EXPERIENCE IN ITS NEW ENGLAND VILLAGE SETTING NOT JUST THE CAMPUS AND THE COURSE CONTENT DARTMOUTH DOES POSSESS A CERTAIN STATUS APPEAL A MARKETING ADVANTAGE THAT MANY OF ITS COMPETITORS IN EXECUTIVE EDUCATION DON'T HAVE MOREOVER TUCK BOASTS ONE OF THE HIGHEST RATIOS IN THE COUNTRY OF MBA ALUMNI WHO CONTRIBUTE FINANCIALLY TO THE SCHOOL AND TUCK DOES HAVE ITS FAITHFUL CORPORATE CLIENTS POLAROID AND GENERAL MOTORS HAVE BEEN SENDING PEOPLE CONSISTENTLY TO TUCK PROGRAMS FOR OVER 10 YEARS SAYS MS EITER OTHER COMPANIES INCLUDING CHAMPION INTERNATIONAL CORP STILL SEND STUDENTS EVERY YEAR BUT NOW ONLY TO THE SHORT PROGRAMS MS EITER ESTIMATES THAT MORE THAN HALF OF THE MANAGERS WHO ATTENDED MBA UPDATE IN MAY ALREADY HAD SOME CONNECTION TO DARTMOUTH MANY ARE TUCK ALUMNI SHE SAYS AND OTHERS WORK FOR ASSOCIATE COMPANIES OF THE TUCK SCHOOL CONCERNS THAT DONATE MONEY AND VOLUNTEER TIME ON CAMPUS ALTHOUGH TUCK OFFICIALS ARE STILL UNDECIDED ABOUT TRYING NATIONAL NEWSPAPER ADS THEY PLAN TO CUT BACK ON MASS MAILINGS IN FAVOR OF MORE SELECTED ONES TO ALUMNI SUPPLEMENTED BY PERSONAL SALES VISITS TO LIKELY CORPORATE CUSTOMERS SAYS MS EITER IF WE CAN JUST GET THEM HERE THE FIRST TIME WE ARE CONFIDANT THAT REFERRALS FROM THOSE STUDENTS WILL FILL THE CLASSES IN THE FUTURE WHY NOT ADVERTISE ON TELEVISION OR RADIO THE WAY MANY FOREIGNLANGUAGE CRASH COURSES DO TUCK'S CONCERN ABOUT ITS IMAGE JUST WON'T ALLOW THAT SAYS MS EITER TRADITIONALLY IT'S JUST NOT DONE SHE SAYS AND TRADITIONS WITH ALL THE TRIMMINGS ARE A MAJOR PART OF WHAT TUCK IS SELLING EXECUTIVEEDUCATION STUDENTS ARE HOUSED IN THE COLLEGEOWNED HANOVER INN A 200YEAROLD SHOWPLACE DECORATED IN ANTIQUES AND FEATURING STARCHED TABLECLOTHS AND CRABTREE & EVELYN TOILETRIES THE BEDTIME TURNDOWN SERVICE IS FIRST RATE SAYS SEMINAR ATTENDEE BARBARA BROWN BUDGET DIRECTOR FOR INTERMOUNTAIN HEALTH CARE A HOSPITALMANAGEMENT COMPANY BASED IN SALT LAKE CITY CHOCOLATES ON MY PILLOW AT NIGHT SHE SAYS WHAT MORE COULD YOU WANT HOW ABOUT LESS SUGAR IN THE BRAIN FOOD THESE CLASSES ARE ABOUT ORGANIZATIONS STRATEGY AND TACTICS WHICH ARE INSPIRING AND EXCITING TO TALK ABOUT SAYS PETER LINDENFELSER VICE PRESIDENT OF LONGOL CORP A WALLINGFORD CONN MAKER OF INDUSTRIAL LAMINATES BUT THIS ISN'T WHERE THE RUBBER MEETS THE ROAD IN MANUFACTURING THIS IS THINKTANK STUFF IF YOU TRIED TO DO THIS TWO WEEKS A YEAR IT WOULD GET VERY OLD AND BE A WASTE OF TIME TO BE SURE A GOOD BIT OF BREAD AND CIRCUS GOES INTO MAKING A FAVORABLE IMPRESSION THAT TUCK'S EXECUTIVES WILL REPORT BACK TO THEIR COMPANIES THUS GENERATING MORE STUDENTS FOR EXAMPLE STUDENTS REGULARLY DINE WITH TUCK PROFESSORS ON SUCH FARE AS WHOLE LOBSTERS JOHN KENNEY PRESIDENT OF AN ARCHITECTURAL FIRM IN TARRYTOWN NY OBSERVES BETWEEN MOUTHFULS YOU GUYS ARE PUTTING ON A GREAT SHOW FOR US TUCK DOESN'T PROMOTE THE NOTION THAT EXECUTIVES WILL RETURN FROM THIS RETREATLIKE ATMOSPHERE TO SHOW THEIR COMPANY COLLEAGUES INSTANTLY HOW TO MAKE MORE OR BETTER WIDGETS INDEED MANY STUDENTS DON'T SEE THAT AS THE PURPOSE KEN RIDDLE VICE PRESIDENT OF A DEFENSECONTRACTING UNIT OF NEW YORKBASED LORAL CORP SAYS HE CAME TO TUCK FOR ACADEMIC INSIGHTS INTO THE GENERAL TRENDS OF BUSINESS AND TO SHOOT THE BREEZE WITH EXECS FROM OTHER BUSINESSES DARTMOUTH DOESN'T GIVE THE EXECUTIVE STUDENTS ANY EXAMS OR REQUIRE THEM TO WRITE RESEARCH PAPERS THERE AREN'T ANY GRADES THE UNIFORM OF THE DAY IS JEANS TSHIRTS AND TENNIS SHOES THIS IS FUN GOING TO SCHOOL AGAIN GETTING AWAY FROM WORK IN THIS SETTING SAYS INTERMOUNTAIN'S MS BROWN IN ONE CLASS 38 STUDENTS FILE INTO OAKPANELED LECTURE ROOMS TO HEAR PROFESSORS LECTURE ON SOME OF THE MOST ABSTRACT TOPICS THAT BUSINESS EXPENSE ACCOUNTS CAN BUY MANAGING KNOWLEDGE TRANSFERS IN GLOBAL MARKETS VALUECHAIN ANALYSIS AND ACTIVITYBASED MANAGEMENT FOR EXAMPLE TUCK'S JAMES BRIAN QUINN A PROFESSOR OF MANAGEMENT LECTURES EXECUTIVES ON THE CONCEPT OF CORE COMPETENCIES TO SOME MANAGERS TAKING THE COURSE SOME OF PROF QUINN'S ADVICE MAY NOT AMOUNT TO MUCH MORE THAN THE FAMILIAR MOTTO STICK TO YOUR KNITTING BUT IT SOUNDS GOOD TO AT LEAST ONE STUDENT JOHN RAWORTH VICE PRESIDENT OF PLANNING AT WELDWOOD OF CANADA LTD A PULP AND PAPER COMPANY IN VANCOUVER SAYS DR QUINN'S IDEAS MAY ENABLE HIM TO REDUCE COSTS BY HIRING OUTSIDE CONTRACTORS FOR CERTAIN MANUFACTURING OPERATIONS CONCLUDES MR RAWORTH I CAN TAKE THE CONCEPT OF CORE COMPETENCY BACK TO MY COMPANY MS DE ROUFFIGNAC IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S HOUSTON BUREAU 9309100146 930910 BUSINESS BRIEF PROFIT AT NATIONAL SEMICONDUCTOR ROSE IN AUG 29 QUARTER NATIONAL SEMICONDUCTOR CORP'S FISCAL FIRSTQUARTER NET INCOME MORE THAN DOUBLED ON AN 18 JUMP IN REVENUE ON STRONG DEMAND FOR ITS SEMICONDUCTORS FOR THE QUARTER ENDED AUG 29 THE CHIP MAKER POSTED NET OF 571 MILLION OR 43 CENTS A SHARE VS 219 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 5589 MILLION FROM THE YEARAGO 4724 MILLION NATIONAL'S EARNINGS WERE WAY ABOVE ANALYSTS' ESTIMATES OF 30 CENTS A SHARE THOMAS THORNHILL III AN ANALYST WITH MONTGOMERY SECURITIES SAID HE WAS SURPRISED TO SEE HOW WELL SEMICONDUCTOR PRICES HELD UP AND IN SOME CASES INCREASED DUE TO ROBUST SALES WE ARE IN A VERY STRONG DEMAND PERIOD MR THORNHILL SAID NATIONAL CONTINUES TO SHOW HEALTHY QUARTERLY GROWTH AS CHIEF EXECUTIVE OFFICER GILBERT AMELIO PURSUES PLANS BEGUN IN 1991 TO REIN IN EXPENSES FOCUS ON HIGHMARGIN PRODUCTS AND FEED HEALTHY DEMAND OUR EFFORTS TO REBUILD THE COMPANY ARE CLEARLY WORKING MR AMELIO SAID IN A STATEMENT LOOKING AHEAD MR AMELIO SAID WE EXPECT BOTH BOOKING AND BILLINGS TO STRENGTHEN SEASONALLY IN THE FALL QUARTER BUT WE REMAIN CAUTIOUS ABOUT THE LONGTERM ECONOMIC OUTLOOK IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NATIONAL SHARES ROSE 125 TO 1925 9309100145 930910 TECHNOLOGY P&G SYNTEX OFFER CHANGES TO GAIN APPROVAL FOR DRUG BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL A NONPRESCRIPTION VERSION OF THE PAIN RELIEVER NAPROSYN APPEARS TO BE INCHING TOWARD FOOD AND DRUG ADMINISTRATION APPROVAL PROCTER & GAMBLE CO AND SYNTEX CORP WHICH TOGETHER ARE SEEKING FDA APPROVAL TO MARKET NAPROSYN SAID THEY HAVE ALTERED PROPOSED DOSAGE RECOMMENDATIONS AND AGREED TO NEW LABELING LANGUAGE TO ADDRESS CONCERNS RAISED BY TWO FDA ADVISORY COMMITTEES THOSE COMMITTEES IN JUNE RECOMMENDED AGAINST GRANTING MARKETING APPROVAL TO AN OVERTHECOUNTER NAPROSYN WHOSE MAIN INGREDIENT IS NAPROXEN CITING CONCERNS ABOUT DOSAGE AND USE BY CHILDREN AND THE ELDERLY WHILE THE FINAL DECISION IS UP TO THE FDA THE ADVISORY COMMITTEES' DECISION WAS A SERIOUS BLOW TO THE JOINT VENTURE BECAUSE THE FDA RARELY OVERTURNS ADVISORY COMMITTEE RECOMMENDATIONS HOWEVER P&G AND SYNTEX NOW SAY THEY HAVE MADE SEVERAL CONCESSIONS TO ADDRESS ISSUES VOICED BY COMMITTEE MEMBERS THE COMPANIES HAVE AGREED TO REDUCE THE RECOMMENDED DAILY DOSAGE FOR PEOPLE BETWEEN THE AGES OF 12 AND 65 TO THREE TABLETS A DAY FROM FOUR WITH INTERVALS OF EIGHT TO 12 HOURS BETWEEN DOSES THE COMPANIES ALSO HAVE AGREED TO USE LABELS ADVISING ADULTS OVER AGE 65 TO CONSUME ONLY TWO TABLETS A DAY WITH A 12HOUR INTERVAL AND WARNING THAT CHILDREN UNDER 12 SHOULD USE THE PRODUCT ONLY UNDER A PHYSICIAN'S SUPERVISION THE FDA PRESENTED SIMILAR DOSAGE AND LABELING CHANGES TO THE ARTHRITIS AND OVERTHECOUNTER DRUGS ADVISORY COMMITTEES AT A MEETING WEDNESDAY RICHARD VIETOR AN ANALYST WITH MERRILL LYNCH WHO SENT A REPRESENTATIVE TO THE FDA MEETING SAID IT APPEARS THAT THE FDA INTENDS TO MOVE AHEAD ON THIS APPROVAL THE FDA REMINDED THE ADVISORY COMMITTEES THAT THEY'RE ONLY THERE TO ADVISE A SPOKESMAN FOR THE FDA SAID THAT NO FINAL DECISION HAS BEEN MADE IF APPROVED NAPROSYN WOULD BE THE FIRST OVERTHECOUNTER PAIN RELIEVER CONTAINING A NEW ANALGESIC INGREDIENT ENTRY SINCE IBUPROFEN RECEIVED FDA APPROVAL IN 1984 IN THE 27 BILLION PAINRELIEVER MARKET THE PRODUCT WOULD COMPETE WITH SUCH ESTABLISHED BRANDS AS JOHNSON & JOHNSON'S TYLENOL WHOSE ACTIVE INGREDIENT IS ACETAMINOPHEN AND IBUPROFENBASED ADVIL WHICH IS MADE BY AMERICAN HOME PRODUCTS CORP PROCTERSYNTEX HEALTH PRODUCTS CO A 5050 JOINT VENTURE FORMED IN 1988 HAS NOT DISCLOSED MARKETING PLANS BUT ANALYSTS EXPECT IT TO DRAW ON NAPROSYN'S REPUTATION AS A WIDELY USED PRESCRIPTION PAIN RELIEVER FOR PEOPLE SUFFERING FROM ARTHRITIS AS WELL AS ACUTE TYPES OF PAIN SOME ANALYSTS HAVE SPECULATED IT MIGHT ALSO BE GEARED TOWARD SPORTSRELATED INJURIES 9309100144 930910 WHO'S NEWS GILLETTE CO GILLETTE CO BOSTON JORGEN WEDEL HAS BEEN APPOINTED PRESIDENT OF THE COMPANY'S ORALB LABORATORIES SUBSIDIARY WHICH MAKES TOOTHBRUSHES AND DENTAL CARE PRODUCTS EFFECTIVE DEC 1 MR WEDEL 45 YEARS OLD IS CURRENTLY GROUP GENERAL MANAGER OF BRAUN US CANADA AND MEXICO A GILLETTE UNIT THAT MAKES AND SELLS ELECTRIC SHAVERS AND HOUSEHOLD ORAL CARE AND HAIRCARE APPLIANCES A SUCCESSOR TO THE BRAUN POST WILL BE ANNOUNCED SHORTLY MR WEDEL SUCCEEDS MICHAEL C HAWLEY 55 WHO HAS BEEN APPOINTED EXECUTIVE VICE PRESIDENT OF GILLETTE'S INTERNATIONAL GROUP ALSO EFFECTIVE DEC 1 9309100143 930910 THE AMERICAS COSTA RICAN UNIONS BROUGHT BACK TO LIFE BY AFLCIO BY JAIME DAREMBLUM SAN JOSE AS A POOR CHILD GROWING UP IN A RURAL AREA RAFAEL RIVAS SHARED WITH HIS FATHER THE TASK OF SUPPORTING THE FAMILY TODAY AS AN ACCOUNTANT IN A CAR DEALERSHIP IN SAN JOSE HE OWNS A COMFORTABLE HOME AND A CAR HIS CHILDREN ATTEND A RESPECTED HIGH SCHOOL AND HIS WIFE OPERATES A SMALL CONVENIENCE STORE IN THE NEIGHBORHOOD MR RIVAS'S REMARKABLE UPWARD MOBILITY HAS BEEN SIGNIFICANTLY INFLUENCED BY SOLIDARISMO AN INDIGENOUS LABORMANAGEMENT COOPERATIVE SYSTEM BEGUN IN THE 1950S BY MEANS OF JOINT CONTRIBUTIONS IT HAS DEVELOPED CREDIT UNIONS SAVINGS AND PENSION PLANS AND BUILDS RECREATIONAL FACILITIES AND SETS UP HOUSING PROGRAMS FOR EMPLOYEES ON WEEKENDS MR RIVAS AND HIS RELATIVES RELAX AT A COUNTRYSIDE CLUB SPONSORED BY THE SOLIDARISTA ASSOCIATION OF EMPLOYEES AT THE COMPANY WHERE HE WORKS AND HIS HOUSE CAR AND THE INITIAL INVESTMENT FOR HIS WIFE'S STORE WERE FINANCED BY THE SAME SOLIDARISTA ASSOCIATION ABOUT THE ONLY GROUP NOT PLEASED WITH THE SOLIDARISTA ASSOCIATIONS ARE THE COUNTRY'S LARGELY CORRUPT UNIONS WHICH HAVE LOST THE BULK OF THEIR MEMBERS TO THIS LESSCONFRONTATIONAL APPROACH TO LABOR MANAGEMENT THE CAMPAIGN WAGED BY COSTA RICAN UNIONS AGAINST SOLIDARISMO HAS LATELY RECEIVED FRESH OXYGEN FROM THE AFLCIO INCREDIBLE AS IT MAY SOUND THE US LABOR ORGANIZATION IS USING US TAXPAYERS' MONEY IN AN ATTEMPT TO REVIVE DISCREDITED TRADE UNIONS WHOSE RESURRECTION IS UNNEEDED AND UNWANTED BY MOST COSTA RICANS WHILE TRADE UNIONS REMAIN STRONG IN COSTA RICA'S PUBLIC SECTOR IN THE PRIVATE SECTOR SOLIDARISMO IS NOW THE LEADING FORCE OF AN ESTIMATED ONE MILLION PEOPLE CURRENTLY EMPLOYED ABOUT 150000 ARE AFFILIATED WITH TRADE UNIONS OF THESE NEARLY 100000 WORK IN THE PUBLIC SECTOR IN CONTRAST SOLIDARISMO HAS A TOTAL OF SLIGHTLY MORE THAN 180000 MEMBERS VIRTUALLY ALL IN THE PRIVATE FIELD SUCH BALANCE OWES AS MUCH TO THE BENEFITS DERIVED FROM SOLIDARISMO AS TO THE BAD REPUTATION SURROUNDING TRADE UNIONS CLOSELY IDENTIFIED IN THE PAST WITH COMMUNISM UNIONS TODAY ATTRACT THE DISLIKE OF BOTH LABOR AND MANAGEMENT BECAUSE OF THE HIGHHANDEDNESS AND CORRUPT PRACTICES OF SOME OF ITS LEADERS A 1992 POLL BY LA NACION NEWSPAPER SHOWED TRADE UNIONS AS THE NATION'S LEAST TRUSTED INSTITUTION IN THEIR LOSING BATTLE WITH SOLIDARISMO FOR OVER A DECADE COSTA RICAN UNIONS HAVE SOUGHT TO OBTAIN LEGAL ADVANTAGES THAT WOULD GIVE THEM AN UPPER HAND FOR INSTANCE THEY HAVE DEMANDED UNSUCCESSFULLY PROVISIONS TO PROHIBIT THE FIRING OF UNION ORGANIZERS UNDER THE COSTA RICAN LABOR CODE ENACTED IN 1943 AN EMPLOYEE CAN BE DISCHARGED AT ANY TIME IF HE IS PROPERLY COMPENSATED WITH SEVERANCE PAYMENTS THESE INCLUDE IN ADDITION TO PRIOR NOTICE AND PROPORTIONAL VACATIONS AND CHRISTMAS BONUS A MONTH'S SALARY FOR EACH YEAR OF EMPLOYMENT UP TO A MAXIMUM OF EIGHT YEARS TRADE UNIONS ARGUE THAT THIS STATUTE LEAVES ORGANIZERS AT THE WHIM OF MANAGEMENT AND WANT LEGISLATION THAT WOULD BAN THE DISMISSAL OF UNION PROMOTERS NO MATTER WHAT HOWEVER THERE IS WIDESPREAD PUBLIC OPPOSITION TO GRANTING LABOR BOSSES THE FREE HAND THEY WOULD LIKE TO EXERT IN PRIVATE BUSINESS MANAGEMENT GROUPS POINT TO THEIR PROVEN RECORD OF DAMAGING HEALTHY COMPANIES WHILE MANY WORKERS COMPLAIN OF THE INTIMIDATION SUFFERED AT THE HANDS OF UNDEMOCRATIC UNION CLIQUES LAST JUNE THE AFLCIO FILED A COMPLAINT WITH THE US TRADE REPRESENTATIVE USTR ASKING TO SUSPEND COSTA RICA'S BENEFITS UNDER THE GENERALIZED SYSTEM OF PREFERENCES AND THE CARIBBEAN BASIN INITIATIVE BECAUSE OF INSUFFICIENT LEGAL PROTECTION FOR LABOR UNIONS TODAY THE USTR IS SCHEDULED TO DECIDE WHETHER TO DROP THE CHARGES OR CONTINUE WITH PROCEDURES AGAINST COSTA RICA A SIMILAR SUIT WAS FILED LAST YEAR AGAINST EL SALVADOR IF THE AFLCIO SUCCEEDS IN DEPRIVING COSTA RICA OF THE TRADE BENEFITS IT NOW ENJOYS THE EFFECTS ON THE ECONOMY WOULD BE DEVASTATING ABOUT 330 MILLION IN EXPORTS WOULD BECOME SUBJECT TO TAXES AND TURN UNCOMPETITIVE AND 200000 JOBS WOULD BE LOST SUCH AN OUTCOME COULD LEAD TO AN OUTFLOW OF CRITICALLY NEEDED FOREIGN INVESTMENT WHILE THE SUDDEN SHOCK OF MASSIVE UNEMPLOYMENT FOREBODES DIRE POLITICAL CONSEQUENCES COSTA RICA IS OF COURSE A MATURE AND STABLE DEMOCRACY BUT OTHER COUNTRIES IN THE REGION THREATENED BY SIMILAR AFLCIO TACTICS ARE JUST BEGINNING TO ENJOY PLURALISTIC SYSTEMS WHICH MAY BE JEOPARDIZED BY SOCIAL UNREST THAT WAS PRECISELY THE SCENARIO WHICH NOT LONG AGO THE RADICAL LEFT TRIED TO CREATE IN ORDER TO PREVENT THE GROWTH OF DEMOCRATIC INSTITUTIONS THE VEHICLE FOR THE AFLCIO'S ACTIONS IN THE AREA HAS BEEN THE AMERICAN INSTITUTE FOR FREE LABOR DEVELOPMENT AIFLD GENEROUSLY FUNDED BY THE US GOVERNMENT THROUGH THE AGENCY FOR INTERNATIONAL DEVELOPMENT AID SOME 4 MILLION IN THE LAST FISCAL YEAR JUST FOR EL SALVADOR AND WITH THE FINANCIAL AND ORGANIZATIONAL BACKING OF ITS PARENT AIFLD PROVIDES POLITICAL COVER AS WELL AS TRAINING AND MATERIAL SUPPORT TO LOCAL UNIONS ALTHOUGH US DIPLOMATS IN SAN JOSE TEND TO MINIMIZE AIFLD'S ROLE HERE THE REALITY IS DIFFERENT LAST SPRING VICKY MEKBEL THE COSTA RICAN EXECUTIVE DIRECTOR OF THE CHAMBER OF TEXTILE PRODUCERS WAS ASKED BY US EMBASSY OFFICIALS TO SCHEDULE VISITS TO SPECIFIC LOCAL PLANTS BY A VISITING TEAM OF POTENTIAL INVESTORS INTERESTED IN OBSERVING USOWNED CONCERNS AFTERWARD AND MUCH TO THE HOSTS' DISMAY IT WAS LEARNED THAT THE SOCALLED FOREIGN EXECUTIVES WERE ACTUALLY UNION ORGANIZERS FROM THE AFLCIO DURING THEIR ROUNDS IN SAN JOSE THE BOGUS BUSINESSMEN CONCENTRATED ON GETTING DETAILS ON THE EMPLOYEES AND PARTICULARLY THEIR NUMBER AND AFFILIATION TO SOLIDARISMO TO AN EXPERIENCED US MANAGER OF ONE OF THE PLANTS VISITED IT WAS OBVIOUS THEY WERE TRYING TO EVALUATE THE SCENE FOR UNION PENETRATION THIS LED HIM TO ASK HIS GUESTS POINT BLANK WHETHER THEY WERE AFLCIO'S ENVOYS GETTING A RELUCTANT BUT AFFIRMATIVE ANSWER WHILE COSTA RICAN UNIONS ARE ATTEMPTING TO DISLODGE SOLIDARISMO THE REAL VICTIM OF THEIR JOINT VENTURE WITH THE AFLCIO IS FREE TRADE BY TARGETING THE FAVORABLE TREATMENT THE US HAS ACCORDED TO CERTAIN IMPORTS FROM NATIONS OF THE CARIBBEAN BASIN THE AFLCIO HOPES TO PROTECT LESS EFFICIENT PRODUCTION UNITS BASED IN THE US MORE LIKELY SANCTIONS WOULD RESULT IN OPERATIONS BEING MOVED TO WHERE THEY CAN STILL COMPETE IN THE US MARKET NAMELY MEXICO JAMAICA OR THE DOMINICAN REPUBLIC IN THE END TOGETHER WITH US CONSUMERS WORKERS ON BOTH SIDES OF THE RIO GRANDE WILL BEAR THE BRUNT OF THE AFLCIO'S MISGUIDED TACTICS MR DAREMBLUM IS A COSTA RICAN BUSINESS LAWYER AND COLUMNIST