LONDON IN RECENT MONTHS ENGINEERS AT APPLE COMPUTER INC HAVE BEEN DABBLING IN A PECULIAR HOBBY FOR COMPUTER MAVENS COLLECTING HANDWRITING SAMPLES FROM AROUND EUROPE THEY NUMBER SEVERAL THOUSAND SAMPLES BY NOWHARDTOREAD SCRIBBLES FROM ENGLISH DOCTORS BROAD LOOPS AND CURVES FROM GERMAN STUDENTS AND THE ODD JOTTING OR TWO FROM APPLE'S OWN EMPLOYEES IN FRANCE WHY THE PEOPLE IN EACH COUNTRY WRITE DIFFERENTLY SAYS BERTRAND EICHINGER AN APPLE EUROPE MARKETING MANAGER THEREIN LIES JUST ONE FACET OF THE ENORMOUS TASK THAT APPLE FACES AS IT PREPARES ITS MUCHBALLYHOOED NEW COMPUTER THE NEWTON MESSAGEPAD FOR SALE IN EUROPE IN THE COMING MONTHS THE MACHINE ONE OF A NEW BREED OF HANDHELD COMPUTER CALLED A PERSONAL DIGITAL ASSISTANT NEEDS REPROGRAMMING TO WORK FOR EUROPEAN CUSTOMERS AMONG OTHER THINGS ITS SOFTWARE TO DECIPHER ITS OWNERS' HANDWRITING WAS TRAINED ON AMERICAN PENMANSHIP NOT GERMAN OR FRENCH AND AS SO MANY OF THE FUNCTIONS INVOLVE COMMUNICATING WITH THE WORLD OUTSIDE APPLE EXECUTIVES HAVE BEEN SCURRYING ACROSS THE CONTINENT FINDING PARTNERS TO MAKE IT WORK WITH EUROPEAN TELEPHONE SYSTEMS AND OTHER SERVICES PREPARING NEWTON FOR MARKET IN EUROPE IS DIFFERENT THAN LOCALIZING A PC SAYS GUERINO DE LUCA VICE PRESIDENT AND GENERAL MANAGER IN EUROPE OF THE APPLE DIVISION PROMOTING NEWTON LOCALIZATION THE PROCESS OF ADAPTING A COMPUTER'S HARDWARE AND SOFTWARE TO A NEW COUNTRY COSTS MORE AS A PERCENTAGE OF NEWTON'S PRICE THAN FOR A CONVENTIONAL PERSONAL COMPUTER HE SAYS BUT THAT JUST GOES WITH THE TERRITORY FOR A MACHINE THAT'S DESIGNED TO MATCH THE PECULIAR HABITS OF ITS OWNER MORE THAN A TYPICAL PC HE SAYS FOR THOSE WHO MIGHT HAVE MISSED MORE THAN A YEAR OF APPLE PUBLICITY THE MESSAGEPAD LOOKS AND WORKS LIKE A PAPER CLIPBOARD WITH A PEN ATTACHED WHEN THE USER WRITES ON THE COMPUTER'S SCREEN THE MACHINE IS PROGRAMMED TO TRY DECIPHERING THE HANDWRITING AND EXECUTING THE COMMANDS WHETHER TO NOTE AN APPOINTMENT IN ITS COMPUTERIZED DIARY TO TAKE A MEMO OR TO FAX A MESSAGE TO A COLLEAGUE SINCE ITS INTRODUCTION AUG 2 IN THE US THE MESSAGEPAD HAS SOLD BRISKLY IN THE FEW MARKETS WHERE IT'S AVAILABLE BUT THE VERDICT IS STILL OUT ON WHETHER IT WILL BE THE SALES HIT APPLE WANTS THE CUPERTINO CALIFBASED COMPANY HAD BEEN PROMOTING THE MACHINE FOR MORE THAN A YEAR BEFORE IT APPEARED ON ANY STORE SHELVES AND EVEN THE STIFF 700 STARTING PRICE WOULDN'T HAVE DISCOURAGED THE TRUEBELIEVER TECHNOJUNKIES WHO ARE AMONG ITS FIRST BUYERS AMONG THE PROBLEMS MANY CRITICS SAY IS ITS HANDWRITING RECOGNITION SOFTWARE ISN'T YET AS ERRORFREE AS IT NEEDS TO BE FOR SUCCESS IN EUROPE INDUSTRY ANALYSTS SAY THE DIFFICULTY OF ADAPTING NEWTON TO EUROPE AND DIFFERENCES BETWEEN THE US AND EUROPEAN COMPUTER MARKETS WILL MAKE NEWTON A HARDER SELL HERE FOR STARTERS SAYS JEFFREY GOLDBERG A BRITISH ANALYST WITH DATAQUEST INC A SAN JOSE CALIF MARKET RESEARCH FIRM EUROPEAN CONSUMERS ARE MORE RESISTANT TO THE HYPE AND ALLURE OF GETTING A NEW TECHNOGADGET JUST BECAUSE IT'S NEW THEY ALSO HAVE ON AVERAGE LOWER DISPOSABLE INCOMES THAT'S A SIGNIFICANT PROBLEM HE SAYS GIVEN THAT LIKE MOST COMPUTERS MESSAGEPAD WILL COST MRE IN EUROPE THAN IN THE US APPLE OFFICIALS SAY THEY EXPECT THE BASIC MODEL TO SELL FOR BETWEEN 590 909 AND 640 TAX INCLUDED IN BRITAIN AND BETWEEN 1600 MARKS 994 AND 1700 MARKS IN GERMANY THEY'RE JUST TOO EXPENSIVE FOR A EUROPEAN MASS MARKET SAYS DATAQUEST'S MR GOLDBERG I DON'T THINK IT'S GOING TO BE A SIGNIFICANT SELLER THE MACHINE IS DUE TO GO ON SALE IN BRITAIN ON SEPT 16 IN GERMANY DURING NOVEMBER AND IN FRANCE DURING THE FIRST QUARTER OF NEXT YEAR BECAUSE OF THE TIME IT TAKES TO ADAPT NEWTON TO EACH COUNTRY THE DEBUT IN MANY OTHER EUROPEAN COUNTRIES MAY BE EVEN LATER EVEN BEFORE THAT THOUGH APPLE HAS TO FINISH THE TECHNICAL WORK OF ADAPTING NEWTON SOFTWARE TO EUROPEAN HANDWRITING LANGUAGES AND CULTURAL PECULIARITIES FOR NEARLY EVERY MAJOR COUNTRY APPLE'S ENGINEERS HAVE TO REWRITE THE HANDWRITING RECOGNITION ALGORITHMS TO IDENTIFY NATIONAL PECULIARITIES THEN THEY HAVE TO TRANSLATE THE COMPUTERIZED DICTIONARIES STORED IN EACH MACHINE ON THE ORDER OF 10000 WORDS THAT NEWTON REFERS TO WHEN TRYING TO GUESS THE WRITER'S MEANING THEY ALSO HAVE TO TAILOR THE MACHINE'S STORED LIST OF PROPER NAMES LOCAL CITIES PUBLIC FIGURES COMMON FIRST AND LAST NAMES THAT ARE UNIQUE TO EACH COUNTRY 9309100140 930910 EXECUTIVE EDUCATION A SPECIAL REPORT SURVEY REPORT CARD ACCORDING TO THE WSJ / BRICKER'S SURVEY THE BESTKNOWN COURSES AREN'T NECESSARILY THE BEST COURSES BY GILBERT FUCHSBERG ARE EXECUTIVEEDUCATION COURSES WORTH THEIR OFTENHEFTY COST YES BUT NOT OVERWHELMINGLY SO ACCORDING TO A NEW SURVEY BY THE WALL STREET JOURNAL AND BRICKER'S INTERNATIONAL DIRECTORY A LEADING REFERENCE GUIDE TO EXECUTIVE PROGRAMS PUBLISHED BY PETERSON'S GUIDES INC OF PRINCETON NJ THE JOURNAL AND BRICKER'S ASKED HUNDREDS OF MAJOR COMPANIES IN THE US AND EUROPE SIX QUESTIONS ABOUT SEVERAL DOZEN OF THE MOST WIDELY USED NONDEGREE PUBLICENROLLMENT EXECUTIVE COURSES THE QUESTIONS ADDRESS SEVERAL CRITICAL DIMENSIONS OF PAYBACK THAT IS THE VALUE OF A COURSE IN HELPING PARTICIPANTS BACK ON THE JOB AND IN THEIR CAREERS THE SURVEY'S BIGGEST SURPRISE ON A QUESTION ABOUT THE COURSES' OVERALL WORTH SOME OF THE BESTKNOWN GENERALMANAGEMENT COURSES THE FLAGSHIP COURSES AT HARVARD COLUMBIA AND NORTHWESTERN UNIVERSITIES EARNED LOWER AVERAGE RATINGS FROM COMPANIES THAN SOME OF THEIR LESSVISIBLE COMPETITORS AT SUCH SCHOOLS AS CARNEGIE MELLON INSEAD AND THE UNIVERSITY OF VIRGINIA BUT THAT DOESN'T MEAN THAT HARVARD COLUMBIA AND NORTHWESTERN ARE DOING A TERRIBLE JOB EVEN THE LOWESTRATED GENERALMANAGEMENT COURSE HARVARD'S 33800 ADVANCED MANAGEMENT PROGRAM GARNERED A 414 AVERAGE RESPONSE ON THE SURVEY'S SIXPOINT SCALE WITH SIX BEING THE HIGHEST POSSIBLE RANKING AND THE OVERALL AVERAGE RESPONSE TO THE QUESTION OF WORTH 485 SUGGESTS THAT THE 18 GENERALMANAGEMENT PROGRAMS LISTED HERE ARE GENERALLY SEEN AS BEING MORE WORTHWHILE THAN NOT SENT TO CORPORATE OFFICIALS WHO SELECT AND PURCHASE EXECUTIVEEDUCATION COURSES THE SURVEY SOUGHT RESPONSES TO THE SIX QUESTIONS ON A SCALE OF ONE A STRONG NO TO SIX A STRONG YES THE FINDINGS DETAILED ON THIS PAGE REFLECT RESPONSES FROM 93 COMPANIES REGARDING 31 COURSES IN ALL 358 RESPONSES WERE RECORDED THE COURSES FALL INTO THREE CATEGORIES THE FLAGSHIP PROGRAMS IN GENERAL MANAGEMENT AS WELL AS TWO OF THE MOST POPULAR CATEGORIES OF COURSES FOCUSING ON NARROW FUNCTIONAL TOPICSLEADERSHIP AND HUMAN RESOURCES AND ORGANIZATION WITHIN EACH GROUP THE COURSES ARE LISTED ACCORDING TO HOW THEY FARED ON AVERAGE IN RESPONSE TO THE SURVEY'S PRIMARY QUERY WAS THE PROGRAM WORTH ITS COST TOP RESPONSES ON THE OTHER QUESTIONS ARE HIGHLIGHTED ON THE GRID BENEATH EACH QUESTION RESPONSES TO THE OTHER FIVE QUERIES PROBING MORE SPECIFIC ASPECTS OF PAYBACK SUCH AS BOTTOMLINE IMPACT WERE TYPICALLY LESS POSITIVE THE LIKELY REASON COMPANIES CAN'T EASILY TRACK THE EFFECTS OF EXECUTIVE TRAINING SO THEY ARE MORE SKEPTICAL ABOUT SPECIFIC RESULTS THAN ABOUT THE MORE GENERAL IMPRESSIONISTIC ISSUE OF OVERALL VALUE AMONG THE FUNCTIONAL PROGRAMS IN THE SURVEY THE LEADERSHIP AT THE PEAK COURSE RUN BY THE CENTER FOR CREATIVE LEADERSHIP IN GREENSBORO NC WAS SEEN AS THE MOST WORTHWHILE IN THE LEADERSHIP CATEGORY THE UNIVERSITY OF MICHIGAN'S STRATEGIC HUMAN RESOURCE PLANNING COURSE WAS JUDGED THE HUMAN RESOURCES AND ORGANIZATION COURSE MOST WORTH ITS COST THE SURVEY REQUIRES SOME CAVEATS FOR ONE THESE LISTS OF PROGRAMS AREN'T ALLINCLUSIVE AND THE RATINGS FOR THE INDIVIDUAL COURSES DON'T REFLECT JUDGMENTS ABOUT THE SCHOOLS' OTHER OFFERINGS NOR SHOULD A SCHOOL'S OMISSION BE SEEN AS INDICATIVE OF ITS QUALITY SOME PROGRAMS SUCH AS GENERALMANAGEMENT COURSES AT THE LONDON BUSINESS SCHOOL AND THE UNIVERSITY OF PITTSBURGH WERE INCLUDED IN THE INITIAL SURVEY MAILING BUT DIDN'T GARNER ENOUGH RESPONSES TO JUSTIFY INCLUSION IN THE FINDINGS ALL PROGRAMS LISTED RECEIVED AT LEAST FIVE CORPORATE RESPONSES EACH AND AMONG THE PROGRAMS LISTED THE NUMERICAL SPREAD BETWEEN SOME RESPONSES IS SO NARROW JUST HUNDREDTHS OF A POINT AS TO MAKE SIGNIFICANT DISTINCTIONS BETWEEN COURSES DIFFICULT TO DETERMINE FROM THESE SURVEY FINDINGS ALONE SEE ACCOMPANYING TABLE WSJ SEPT 10 1993 9309100139 930910 INTERNATIONAL PREUSSAG'S SALES DECLINE HANOVER GERMANY GERMAN INDUSTRIAL GROUP PREUSSAG AG SAID SALES FELL 28 FOR ITS THIRD QUARTER ENDED JUNE 30 AND 24 FOR THE FIRST NINE MONTHS OF THE FISCAL YEAR WHICH BEGAN OCT 1 FOR THE THREE MONTHS SALES TOTALED 5907 BILLION MARKS 366 BILLION DOWN FROM 608 BILLION MARKS A YEAR EARLIER FOR THE NINE MONTHS SALES FELL TO 16824 BILLION MARKS FROM 17246 BILLION MARKS IN THE YEAREARLIER PERIOD PREUSSAG SAID ALTHOUGH IT CLEARLY FELT THE CURRENT STEEL CRISIS AND THE DESOLATE SITUATION IN THE METALS MARKETS ITS ENERGY TRANSPORT SHIPBUILDING PLANTBUILDING ENVIRONMENTAL TECHNOLOGY AND CONSTRUCTION TECHNOLOGY DIVISIONS ALL WERE HAVING GOOD SUCCESS 9309100138 930910 A CLEAN SLATE ISRAEL AND PLO AGREE TO MUTUAL RECOGNITION IN A HISTORIC ACCORD ARAFAT'S MONEY PROBLEMS ISRAEL'S DOMESTIC UNREST HELP CLINCH AGREEMENT IS A PALESTINIAN STATE NEXT BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM TWENTYONE YEARS AFTER HER HUSBAND YOSEF AND 10 OTHER MEMBERS OF THE ISRAELI ATHLETIC TEAM AT THE 1972 MUNICH OLYMPICS WERE TAKEN CAPTIVE AND KILLED BY MEMBERS OF A PALESTINIAN TERROR GROUP ILANA ROMANO TURNED ON HER TELEVISION SET TO LEARN THAT HER GOVERNMENT WAS CONDUCTING NEGOTIATIONS WITH THE MAN SHE HOLDS RESPONSIBLE FOR HER HUSBAND'S MURDER PALESTINE LIBERATION ORGANIZATION CHAIRMAN YASSER ARAFAT I KNOW THERE IS NO OTHER WAY TO MAKE PEACE SAYS MS ROMANO HER FACE CLOUDED BY CONFLICTING EMOTIONS OF FEAR AND HOPE AS SHE CONTEMPLATES MAKING PEACE WITH THE MAN WHO HAS SO LONG SYMBOLIZED TERRORISM IN HER COUNTRY BUT WHEN I STAND IN FRONT OF YOSEF'S TOMBSTONE MY HEART KNOWS THAT THE PLO MURDERED MY HUSBAND AND THAT YASSER ARAFAT GAVE THE ORDER IN THE WEST BANK CITY OF RAMALLAH HUSSEIN ZMIKHAH A LEADER OF THE PALESTINIAN INTIFADA OR UPRISING IS ALSO STRUGGLING TO ADJUST TO A NEW POLITICAL REALITY TWO MONTHS AGO HE WAS RELEASED FROM AN ISRAELI PRISON WHERE HE SAYS HE SPENT 69 CONSECUTIVE DAYS IN SOLITARY CONFINEMENT TIED TO A CHAIR WITH A HOOD OVER HIS HEAD I DON'T TRUST THE ISRAELIS I DON'T THINK THEY EVER INTEND TO WITHDRAW FROM THE ENTIRE WEST BANK SAYS MR ZMIKHAH WHO CAN'T SHAKE THE MEMORY OF ISRAELI SOLDIERS SHOOTING AT CHILDREN IN HIS TOWN BUT WE ARE READY FOR PEACE AFTER NINE MONTHS OF SECRET NEGOTIATIONS ISRAEL AND THE PLO YESTERDAY REACHED A HISTORIC ACCORD EMBRACING MUTUAL RECOGNITION AND PEACEFUL COEXISTENCE NOW BOTH SIDES MUST STRUGGLE LIKE MS ROMANO AND MR ZMIKHAH TO PUT PAINFUL RECOLLECTIONS BEHIND THEM AND TO START OVER AGAIN AS BEST AS THEY CAN THIS IS AN EXTRAORDINARY MOMENT OF GRACE SAYS YARON EZRAHI A PROFESSOR OF POLITICAL PHILOSOPHY AT HEBREW UNIVERSITY IN JERUSALEM PRAGMATISM AND DIPLOMACY HAVE TRIUMPHED OVER THE POWER OF MEMORY UNDER THE ACCORD ISRAEL RECOGNIZES THE PLO FOR THE FIRST TIME WHILE THE PLO RECOGNIZES ISRAEL'S RIGHT TO EXIST IN PEACE THE AGREEMENT CALLS FOR PALESTINIANS LIVING IN THE OCCUPIED TERRITORIES TO REFRAIN FROM VIOLENCE REVOKES CLAUSES IN THE PLO CHARTER WHICH REFER TO THE DESTRUCTION OF ISRAEL AND SETS UP A PROCESS TO RESOLVE PROBLEMS PEACEFULLY IT PAVES THE WAY FOR THE SIGNING SCHEDULED FOR MONDAY AT THE WHITE HOUSE OF A PACT INITIALED LAST WEEK THAT WOULD PROVIDE FOR PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO MOST PALESTINIANS AND MANY ISRAELIS SEE THAT PACT AS THE FIRST STEP IN THE ESTABLISHMENT OF A SEPARATE PALESTINIAN STATE ENCOMPASSING THE WEST BANK AND GAZA STRIP ISRAEL'S CABINET YESTERDAY VOTED UNANIMOUSLY TO APPROVE THE MUTUAL RECOGNITION AGREEMENT THE 13 MEMBERS ATTENDING A MEETING OF THE PLO'S RULING EXECUTIVE COMMITTEE ENDORSED THE ACCORD LATER IN THE DAY THOUGH ONLY AFTER MUCH DEBATE AND BY A TINY MARGIN MR ARAFAT SIGNED THE AGREEMENT IN TUNIS EARLY THIS MORNING YESTERDAY TRYING TO EXPLAIN TO THE ISRAELI PARLIAMENT WHY THE PLO WAS NOW WILLING TO ABANDON ITS ARMED STRUGGLE AND RECOGNIZE ISRAEL'S RIGHT TO EXIST ISRAELI FOREIGN MINISTER SHIMON PERES SAID WE DIDN'T CHANGE ARAFAT CHANGED IN FACT BOTH SIDES HAVE UNDERGONE PROFOUND TRANSFORMATIONS ON THE PALESTINIAN SIDE THE DEAL MUST BE SEEN AGAINST THE CONTEXT OF THE PLO'S FINANCIAL DIFFICULTIES OVER THE YEARS WHAT HAD ONCE BEEN ONE OF THE RICHEST LIBERATION MOVEMENTS IN HISTORY APPEARED ON THE VERGE OF FINANCIAL COLLAPSE UNTIL THE 1991 GULF WAR SAUDIA ARABIA AND THE OILRICH GULF STATES HAD SUPPLIED THE BULK OF THE PLO'S 275 MILLION ANNUAL BUDGET BUT THEY CUT OFF AID TO THE PLO AS PUNISHMENT FOR MR ARAFAT'S DECISION TO PUBLICLY SIDE WITH IRAQ DURING THE WAR THE FINANCIAL CRISIS FORCED THE PLO TO SHUT SCHOOLS HOSPITALS AND OTHER PUBLIC INSTITUTIONS THAT HAD FORMED THE BASE OF ITS SUPPORT IN THE OCCUPIED TERRITORIES IRANBACKED ISLAMIC FUNDAMENTALIST GROUPS INCLUDING THE EXTREMIST HAMAS RUSHED IN TO FILL THE GAPS FIGHTING FOR POLITICAL SURVIVAL MR ARAFAT TURNED TO THE ISRAELIS CULMINATING WHAT HAD BEEN AN EVOLUTIONARY CHANGE IN THE PLO'S POSITION TOWARD THE JEWISH STATE WHILE THE PLO HAD NEVER FORMALLY REVOKED ITS 1968 COVENANT CALLING FOR THE LIBERATION OF ALL PALESTINE THROUGH ARMED STRUGGLE MR ARAFAT REALIZED SUCH A STRATEGY HAD BECOME OUTDATED IN THE FACE OF ISRAEL'S OVERWHELMING MILITARY STRENGTH IN 1974 THE PLO HAD TAKEN ITS FIRST STEPS TOWARD POLITICAL SETTLEMENT WHEN THE PALESTINIAN NATIONAL COUNCIL PNC ADOPTED A NEW APPROACH THE LIBERATION OF PALESTINE IN STAGES STARTING WITH THE OCCUPIED TERRITORIES BUT IN 1987 THE PNC WAS TAKEN BY SURPRISE BY THE OUTBREAK OF THE INTIFADAAN UNPLANNED SPONTANEOUS OUTBURST AMONG PALESTINIANS IN THE OCCUPIED TERRITORIES FRUSTRATED BY ISRAEL'S OCCUPATION AND MR ARAFAT'S INABILITY SOLVE THEIR PROBLEMS GOADED INTO ACTION THE PNC IN 1988 PROCLAIMED THE ESTABLISHMENT OF A PALESTINIAN STATE IN THE OCCUPIED TERRITORIES IT ALSO SAID IT WAS WILLING TO CONSIDER A TWOSTATE SOLUTION INSTEAD OF SIMPLY CALLING FOR THE ULTIMATE DEMISE OF ISRAEL THE ISRAELIS MEANWHILE HAD BEEN REANALYZING SOME OF THEIR OWN ASSUMPTIONS SIX YEARS OF THE INTIFADA HAD PROMPTED GROWING DOUBTS ABOUT THE MORAL COSTS OF THE OCCUPATION AND HAD ALREADY LED TO CALLS FOR ISRAEL TO UNILATERALLY WITHDRAW FROM GAZA ISRAELIS WERE TIRED SAYS URI DROMI AN ISRAELI GOVERNMENT SPOKESMAN FOR 20 YEARS THE PALESTINIANS HAD SPOILED US AND LET US RULE THEM WITHOUT TOO MUCH TROUBLE WHEN THEY TOOK ROCKS IN THEIR HANDS THEY WERE KNOCKING ON OUR DOORS AND TELLING US HEY WE EXIST' IN THAT SENSE THE INTIFADA SUCCEEDED GOVERNMENT OFFICIALS WERE ALSO WARY OF GROWING PALESTINIAN SUPPORT FOR HAMAS WHICH OPPOSES ANY NEGOTIATION WITH ISRAEL INCREASINGLY MANY OFFICIALS FELT THEY HAD NO OTHER CHOICE BUT TO TALK TO THE MORE MODERATE PLO ISRAEL'S DOMESTIC PROBLEMS ALSO PLAYED A ROLE AS THE COUNTRY STRUGGLES TO ABSORB HUNDREDS OF THOUSANDS OF NEW RUSSIANJEWISH IMMIGRANTS MANY ISRAELIS HAVE GROWN TO BELIEVE PEACE WOULD BRING THE ECONOMIC BOOM NECESSARY FOR CREATING NEW JOBS WHAT'S MORE ISRAEL DURING THE 1991 MADRID PEACE CONFERENCE ORGANIZED BY PRESIDENT BUSH HAD ALREADY DEALT WITH PALESTINIAN NEGOTIATORS WHO OPENLY IDENTIFIED WITH THE PLO IN EFFECT ISRAEL WAS ALREADY NEGOTIATING WITH THE PLO SOME ISRAELIS FIGURED SO WHY NOT MAKE IT OFFICIAL IF IT WOULD HELP LEAD TO A PEACE AGREEMENT STILL MR RABIN'S OWN PERSONAL TRANSFORMATION TOOK LONGER HE HAD PROMISED ISRAELI VOTERS DURING THE ELECTION CAMPAIGN LAST YEAR THAT ISRAEL WOULD NEVER SPEAK WITH THE TERRORIST PLO UNTIL RECENTLY HE INSISTED THAT ALTERNATIVES TO THE PLO COULD BE FOUND AMONG THE LOCAL PALESTINIAN LEADERSHIP LIVING IN THE TERRITORIES BUT TWO YEARS OF STALLED PEACE NEGOTIATIONS AND GROWING PRESSURE BY THE ISRAELI PUBLIC TO DELIVER ON HIS ELECTION PROMISE TO REACH AN AUTONOMY AGREEMENT WITH THE PALESTINIANS WITHIN ONE YEAR LED HIM TO CONCLUDE THAT THERE WAS NO PALESTINIAN PARTNER BESIDES THE PLO WHEN THE NORWEGIANS OFFERED TO BE THE MIDWIFE FOR SECRET MEETINGS BETWEEN ISRAELI AND PLO OFFICIALS THE STAGE WAS SET FOR AN AGREEMENT WITH THE PACT SEALED EMOTIONS ARE RUNNING HIGH ON BOTH SIDES RIGHTWING CRITICS INSIDE ISRAEL INSIST THAT THE ACCORD WILL LEAD TO A PALESTINIAN STATE WHICH IN TURN WILL TRY TO DESTROY ISRAEL THE UNDERLYING GOAL OF THE PLO REMAINS THE DISMANTLING OF ISRAEL AND ZIONISM SAYS BENJAMIN NETANYAHU LEADER OF THE LIKUD OPPOSITION PARTY THIS MARCH OF FOLLY IS UNPRECEDENTED EVEN IN THIS CENTURY OF FOLLIES THIS AGREEMENT WILL NOT LEAD TO PEACE EXTREMIST PALESTINIANS MEANWHILE SAY MR ARAFAT HAS SOLD OUT HIS PEOPLE HE NOT ONLY DIDN'T GET THE RETURN OF PALESTINE'S HISTORIC LANDS BUT HE DIDN'T EVEN GET A PROMISE OF A PALESTINIAN STATE PALESTINIAN EXTREMISTS WERE ALREADY ALIENATED FROM MR ARAFAT AND WITH THE NEW PACT THEY ARE TURNING ON HIM WITH A VENGEANCE IN THE SYRIAN CAPITAL OF DAMASCUS RADICAL PALESTINIAN GUERRILLA COMMANDER AHMED JIBRIL LEADER OF THE POPULAR FRONT FOR THE LIBERATION OF PALESTINEGENERAL COMMAND IMMEDIATELY PREDICTED THAT MR ARAFAT WILL BE ASSASSINATED THIS WILL DELAY OUR LIBERATION FOR HUNDREDS OF YEARS SAYS ADLY SHARIF AN ELECTRICAL ENGINEER IN THE WEST BANK TOWN OF RAMALLAH WHO OPPOSES THE AGREEMENT PALESTINIANS WILL FIGHT EACH OTHER JUST AS PALESTINIANS LOOK UPON THE LEADERSHIP OF 1947 AND SAY THEY MADE A MISTAKE HISTORY WILL JUDGE THE LEADERSHIP OF 1993 IN THE SAME WAY FOR THE VAST MAJORITY OF BOTH ISRAELIS AND PALESTINIANS THOUGH CONFUSION IS THE EMOTION OF THE MOMENT WITH BOTH GROUPS DESPERATELY WANTING PEACE BUT WARY OF THE OTHER THE TWO SIDES HAVE SPENT YEARS PRETENDING THE OTHER DIDN'T EXIST OR WOULD SOMEHOW DISAPPEAR THE ISRAELIS WHO DREAMED FOR 2000 YEARS OF RETURNING TO ZION DIDN'T RECOGNIZE THE SENSE OF DISPLACEMENT THE PALESTINIANS WOULD FEEL THEY PERSISTED WITH THE NOTION THAT THE REFUGEES HAD NO SEPARATE NATIONAL IDENTITY AND COULD THEREFORE BE RESETTLED IN THE SURROUNDING ARAB STATES THE PALESTINIANS WHO MOURN THE LOSS OF EVERY VILLAGE AND EVERY FIELD FAILED TO GRASP THE INTENSITY OF ISRAELI ATTACHMENT TO THE SAME LAND THEY DIDN'T UNDERSTAND HOW PROFOUNDLY THE HOLOCAUST AND THE CONSTANT WAR WITH ARAB NEIGHBORS SHAPED THE ISRAELIS' BELIEF THAT ONLY A JEWISH STATE COULD ENSURE THAT THEY WOULD NEVER BE VICTIMS AGAIN WHEN YOSEF ROMANO WAS KILLED DURING THE MUNICH OLYMPICS ILANA WAS 26 YEARS OLD AND THE MOTHER OF THREE GIRLS AGED SIX FOUR AND FOUR MONTHS MY YOUNGEST DAUGHTER IS NOW 21 YEARS OLD AND SHE HAS NEVER SAID THE WORD FATHER ONCE IN HER LIFE SAYS MS ROMANO 47 A PETITE WOMAN WHO TODAY RUNS HER OWN ITALIAN RESTAURANT IT'S HARD FOR ME TO MAKE THIS SWITCH SO QUICKLY TO ONE DAY BE THINKING MR ARAFAT IS A TERRORIST AND THE NEXT DAY TO SEE HIM SITTING DOWN WITH THE LEADERS OF MY GOVERNMENT SAYING HE WANTS TO MAKE PEACE SHE AND HER FELLOW ISRAELIS ARE NOW STRUGGLING TO REDEFINE THEIR VIEWS NOT JUST OF THE PLO BUT OF THEIR OWN COUNTRY THE OLD VIEW AND THE EMERGING NEW ONE MAY HAVE BEEN BEST ILLUSTRATED BY TWO PICTURES THAT RAN SIDE BY SIDE IN AN ISRAELI NEWSPAPER EARLIER THIS YEAR ON ONE SIDE WAS A GRAINY BLACKANDWHITE PHOTO OF A WOUNDED GIRL HER MOUTH OPEN IN A SCREAM BEING CARRIED IN HER BROTHER'S ARMS OUT OF A SCHOOL IN THE NORTHERN ISRAELI CITY OF MAALOT WHERE PALESTINIAN TERRORISTS IN 1974 KILLED 25 PEOPLE ALL BUT FOUR OF THEM CHILDREN NEXT TO IT WAS A COLOR PICTURE OF THE SAME GIRL NOW GROWN UP STANDING NEXT TO HER BROTHER ON HER WEDDING DAY UNTIL NOW THE SMILING PICTURE OF THE BRIDE ON THE VERGE OF A NEW LIFE HAD BEEN A STRANGER TO ISRAELIS IT IS THE PICTURE OF THE GIRL HER FEAR AND HER POWERLESSNESS THAT HAD BECOME EMBEDDED IN THE ISRAELI NATIONAL CONSCIOUSNESS YITZHAK RABIN HAS TOUCHED THE DEEPEST CHORDS OF ISRAELI YEARNING FOR A FUTURE FREE OF THE ANXIETY AND TRAUMA AND SELFPERCEPTION OF BEING ETERNAL VICTIMS SAYS MR EZRAHI THE ISRAELI POLITICAL PHILOSOPHY PROFESSOR BY RECOGNIZING ARAFAT WE ARE SAYING THAT WE ARE FINALLY WILLING TO LOOK INTO THE FUTURE FOR THE PALESTINIANS AS WELL A SIMILAR CHOICE IS AT STAKE MUHAMMAD WAHIEDI A 29YEAROLD PALESTINIAN JOURNALIST WAS BORN AND RAISED IN THE GAZA STRIP BUT THROUGHOUT HIS CHILDHOOD HE WAS INSTRUCTED BY HIS FATHER TO TELL ANYONE WHO ASKED THAT HE WAS FROM BEERSHEBA THE ISRAELI CITY IN THE NEGEV DESERT WHICH THE FAMILY FLED IN 1948 SOMEDAY HIS FATHER USED TO SAY WE WILL GO BACK TO BEERSHEBA MR WAHIEDI SAYS THAT IF THE PALESTINIANS GAIN SOVEREIGNTY IN THE WEST BANK AND THE GAZA STRIP HE WILL HAVE NO PROBLEM DOING WHAT WOULD HAVE BEEN UNTHINKABLE FOR SOMEONE OF HIS FATHER'S GENERATION SEEKING FINANCIAL COMPENSATION FOR THE LOSS OF THE FAMILY'S LAND IN BEERSHEBA A RECOGNITION THAT HE IS GIVING UP HIS HISTORICAL IF NOT HIS EMOTIONAL CLAIM THERE FOUR MONTHS FROM NOW PALESTINIAN SELFRULE IS EXPECTED TO BEGIN IN THE GAZA STRIP RIGHT AROUND THE TIME THAT MR WAHIEDI'S PREGNANT WIFE WILL DELIVER THE COUPLE'S FIRST CHILD MY FATHER WAS FROM BEERSHEBA SAYS MR WAHIEDI I HOPE MY CHILD WILL BE FROM PALESTINE FOLLOWING IS THE TEXT OF LETTERS EXCHANGED BETWEEN ISRAELI PRIME MINISTER YITZHAK RABIN AND PLO CHAIRMAN YASSER ARAFAT THAT DETAIL THEIR MUTUAL RECOGNITION THE SIGNING OF THE DECLARATION OF PRINCIPLES MARKS A NEW ERA IN THE HISTORY OF THE MIDDLE EAST IN FIRM CONVICTION THEREOF I WOULD LIKE TO CONFIRM THE FOLLOWING PLO COMMITMENTS THE PLO RECOGNIZES THE RIGHT OF THE STATE OF ISRAEL TO EXIST IN PEACE AND SECURITY THE PLO ACCEPTS UNITED NATIONS SECURITY COUNCIL RESOLUTIONS 242 AND 338 THE PLO COMMITS ITSELF TO THE MIDDLE EAST PEACE PROCESS AND TO A PEACEFUL RESOLUTION OF THE CONFLICT BETWEEN THE TWO SIDES AND DECLARES THAT ALL OUTSTANDING ISSUES RELATING TO PERMANENT STATUS WILL BE RESOLVED THROUGH NEGOTIATIONS THE PLO CONSIDERS THAT THE SIGNING OF THE DECLARATION OF PRINCIPLES CONSTITUTES A HISTORIC EVENT INAUGURATING A NEW EPOCH OF PEACEFUL COEXISTENCE FREE FROM VIOLENCE AND ALL OTHER ACTS WHICH ENDANGER PEACE AND STABILITY ACCORDINGLY THE PLO RENOUNCES THE USE OF TERRORISM AND OTHER ACTS OF VIOLENCE AND WILL ASSUME RESPONSIBILITY OVER ALL PLO ELEMENTS AND PERSONNEL IN ORDER TO ASSURE THEIR COMPLIANCE PREVENT VIOLATIONS AND DISCIPLINE VIOLATORS IN VIEW OF THE PROMISE OF A NEW ERA AND THE SIGNING OF THE DECLARATION OF PRINCIPLES AND BASED ON PALESTINIAN ACCEPTANCE OF SECURITY COUNCIL RESOLUTIONS 242 AND 338 THE PLO AFFIRMS THAT THOSE ARTICLES OF THE PALESTINIAN COVENANT WHICH DENY ISRAEL'S RIGHT TO EXIST AND THE PROVISIONS OF THE COVENANT WHICH ARE INCONSISTENT WITH THE COMMITMENTS OF THIS LETTER ARE NOW INOPERATIVE AND NO LONGER VALID CONSEQUENTLY THE PLO UNDERTAKES TO SUBMIT TO THE PALESTINIAN NATIONAL COUNCIL FOR FORMAL APPROVAL THE NECESSARY CHANGES IN REGARD TO THE PALESTINIAN COVENANT IN RESPONSE TO YOUR LETTER OF SEPTEMBER 9 1993 I WISH TO CONFIRM TO YOU THAT IN LIGHT OF THE PLO COMMITMENTS INCLUDED IN YOUR LETTER THE GOVERNMENT OF ISRAEL HAS DECIDED TO RECOGNIZE THE PLO AS THE REPRESENTATIVE OF THE PALESTINIAN PEOPLE AND COMMENCE NEGOTIATIONS WITH THE PLO WITHIN THE MIDDLE EAST PEACE PROCESS 9309100137 930910 TECHNOLOGY MICROSOFT TO CHANGE SUPPORT POLICY TO CHARGE FOR CALLS ABOUT WINDOWS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP PLANS TO ANNOUNCE TODAY CHANGES IN ITS TECHNICAL SUPPORT SERVICES WHICH INCLUDE CHARGING CUSTOMERS FOR THE FIRST TIME FOR TELEPHONE INQUIRIES ABOUT ITS FLAGSHIP SOFTWARE WINDOWS THE REDMOND WASH COMPANY ALSO PLANS TO BEGIN OFFERING CUSTOMERS WAYS TO RECEIVE ADVICE AND TECHNICAL SUPPORT AT RATES VARYING FROM A 2AMINUTE CALL ON A 900 PHONE NUMBER TO A 20000 ANNUAL FLAT FEE FOR A COMPREHENSIVE SERVICE PLAN THE MOVE BY MICROSOFT MAY BE FOLLOWED BY OTHER SOFTWARE MAKERS WHO ARE FACED WITH THE DAUNTING TASK OF PROVIDING WHAT WAS ONCE UNLIMITED FREE ADVICE TO A GROWING NUMBER OF USERS AS SOFTWARE PRICES AND PROFIT MARGINS FALL SOFTWARE CONCERNS MUST FIND REVENUE TO PAY FOR THE TECHNICAL SUPPORT STAFFS THAT HANDLE THE CALLS WITH SOFTWARE PRICES DROPPING THEY SOFTWARE COMPANIES MUST FIND OTHER WAYS OF BRINGING IN REVENUE SAID TIM BAJARIN PRESIDENT OF CREATIVE STRATEGIES RESEARCH INTERNATIONAL A COMPUTER CONSULTING FIRM ADVANCES IN SOFTWARE HAVE ADDED A PLETHORA OF FEATURES AND OPTIONS TO PROGRAMS BUT AT THE SAME TIME MADE THEM INCREASINGLY DIFFICULT TO USE RATHER THAN WADING THROUGH DICTIONARYSIZE INSTRUCTION MANUALS NOVICES HAVE THE LUXURY OF CALLING A MANUFACTURERPROVIDED PHONE NUMBER FOR INSTANT TECHNICAL ADVICE BUT THAT HELP IS BECOMING RESTRICTED FOR EXAMPLE BUYERS OF MICROSOFT'S WINDOWS OPERATING SYSTEM ENHANCEMENT WERE ONCE ALLOWED UNLIMITED PHONE CALLS UNDER THE NEW POLICY CUSTOMERS CAN CALL FOR FREE ADVICE DURING AN INITIAL 90DAY PERIOD AFTER WHICH THEY MUST PAY AN AMOUNT DETERMINED BY DIFFERENT OPTIONS DEBORAH WILLINGHAM A MICROSOFT GENERAL MANAGER SAID THE COMPANY REVISED ITS SUPPORT POLICY FOR WINDOWS TO MATCH THE POLICIES ALREADY IN PLACE FOR ITS MSDOS OPERATING SYSTEM SOFTWARE CALLS ABOUT THAT SOFTWARE ARE ALSO FREE FOR AN INITIAL 90 DAYS BEFORE CUSTOMERS ARE CHARGED SHE SAID MICROSOFT'S PLANS CALL FOR A VARIETY OF SERVICE PACKAGES WITH DIFFERENT FEES DEPENDING ON THE AMOUNT OF SUPPORT AND AVAILABILITY NEEDED AT THE TOP OF THE SCALE IS A 20000 PACKAGE FOR 24HOURADAY SERVICE LOWER RATES INCLUDE 95 FOR INDIVIDUAL CALLS OR 2 A MINUTE FOR A 900 NUMBER CALL MS WILLINGHAM SAID MICROSOFT DOESN'T EXPECT TO PROFIT FROM THE SERVICE OFFERINGS ITS INTENT IS TO PROVIDE A BROADER RANGE OF SERVICES AND OPTIONS TO ITS CUSTOMERS THE NEW SERVICES AREN'T PRICED TO BE A PROFITMAKING PART OF THE BUSINESS SHE SAID MICROSOFT WILL CONTINUE TO OFFER UNLIMITED FREE CALLS ABOUT APPLICATION SOFTWARE PRODUCTS SUCH AS ITS WORD PROCESSING SPREADSHEET AND DATABASE PRODUCTS MS WILLINGHAM SAID 9309100136 930910 ENTERTAINMENT PARAMOUNT VIACOM DISCUSS A STOCK SWAP BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC AND VIACOM INC ARE WEIGHING A STOCK SWAP THAT WOULD CREATE AN ENTERTAINMENT GIANT ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS THE TWO COMPANIES WHICH HAVE HAD DISCUSSIONS SEVERAL TIMES IN RECENT YEARS RESUMED TALKS IN EARNEST THIS SUMMER PARAMOUNT DIRECTORS WERE BRIEFED ON THE TALKS AT A REGULAR BOARD MEETING YESTERDAY PEOPLE CLOSE TO BOTH COMPANIES SAID BUT NO FORMAL ACTION WAS TAKEN BOTH COMPANIES DECLINED TO COMMENT ALTHOUGH SOME INDUSTRY OBSERVERS ARE SKEPTICAL ABOUT WHETHER A DEAL CAN BE REACHED WALL STREET PROFESSIONALS SAID THE TRANSACTION NOW UNDER DISCUSSION WOULD LEAVE VIACOM AS THE SURVIVING COMPANY VIACOM WOULD ISSUE 0915 SHARE FOR EACH OF PARAMOUNT'S ROUGHLY 120 MILLION SHARES OUTSTANDING SUCH A TRANSACTION WOULD VALUE PARAMOUNT AT CLOSE TO 60 A SHARE AT CURRENT MARKET PRICES PARAMOUNT'S STOCK MARKET VALUE IS ABOUT 68 BILLION AND VIACOM'S IS 79 BILLION VIACOM ALSO HAS ABOUT 27 BILLION IN DEBT PARAMOUNT SHARES CLOSED AT 56875 YESTERDAY UP 1875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE VIACOM CLASS A SHARES CLOSED AT 65625 ON THE AMERICAN STOCK EXCHANGE UP 1375 ITS CLASS B SHARES JUMPED 1875 TO 58625 VIACOM CHAIRMAN SUMNER REDSTONE WHO OWNS 763 OF VIACOM WOULD CONTROL ABOUT 30 OF THE NEW COMPANY MR REDSTONE 70 YEARS OLD AND MARTIN DAVIS 66 PARAMOUNT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAVE HAD INFORMAL DISCUSSIONS ON A MERGER OR JOINT VENTURES FOR SEVERAL YEARS OFF AND ON BUT THEY HAVE NEVER BEEN ABLE TO AGREE ON A VALUE OR DECIDE HOW A NEW COMPANY SHOULD BE RUN PEOPLE FAMILIAR WITH THE TALKS SAID IN JULY ACCORDING TO ONE PERSON FAMILIAR WITH THE SITUATION THE TWO COMPANIES ALMOST SEALED A DEAL AFTER AGREEING THAT MR REDSTONE WOULD BE CHAIRMAN OF THE COMBINED COMPANY ONLY TO HAVE THE PROPOSAL COLLAPSE OVER PRICE NOW PEOPLE FAMILIAR WITH THE TALKS SAID THE TWO SIDES ARE CLOSE TO AN AGREEMENT ON BOTH PRICE AND MANAGEMENT BUT INDUSTRY OBSERVERS REMAIN HIGHLY SKEPTICAL ABOUT WHETHER MESSRS REDSTONE AND DAVIS CAN FINALLY PUT TOGETHER A DEAL THOUGH THE MERGER MAKES PERFECT STRATEGIC SENSE THE CONTROL ISSUES APPEAR INSURMOUNTABLE TO SOME IT'S A LOGICAL DEAL WITH TERRIFIC SYNERGIES AND ONE PLUS ONE EQUALS TWO AND A HALF WITH VIACOM AND PARAMOUNT SAID MARIO GABELLI WHOSE GABELLI FUNDS OWNS LARGE STAKES IN BOTH COMPANIES BUT I DON'T THINK YOU CAN GET PAST THE ISSUE OF CONTROL BETWEEN SUMNER REDSTONE AND MARTIN DAVIS BECAUSE MR DAVIS HOLDS NO SIGNIFICANT STAKE IN PARAMOUNT AND MR REDSTONE OWNS MOST OF VIACOM IT WOULD BE LOGICAL FOR MR REDSTONE TO WIND UP IN CONTROL OF THE COMBINED COMPANIES AND DESPITE A REPUTATION FOR BEING UNWILLING TO GIVE UP HIS POWER MR DAVIS ALWAYS HAS SAID THAT HE WOULD MAKE THE BEST DEAL FOR HIS SHAREHOLDERS BUT SOME ON WALL STREET HAVE BEEN IMPATIENT WITH PARAMOUNT'S FAILURE TO DO A DEAL AND DISAPPOINTED IN ITS RECENT STOCK PERFORMANCE MR DAVIS HAS LONG BEEN LOOKING FOR A STRATEGIC ACQUISITION OR MERGER HIS MOST AMBITIOUS PLANS WERE THWARTED IN 1989 IN A FAILED BID TO BREAK UP THE MERGER OF TIME INC AND WARNER COMMUNICATIONS INC WITH A 200ASHARE BID FOR TIME SINCE THEN PARAMOUNT HAS HAD TALKS WITH TURNER BROADCASTING SYSTEM INC CAPITAL CITIES/ABC INC GENERAL ELECTRIC CO'S NBC UNIT AND TELECOMMUNICATIONS INC BUT NONE HAVE BEEN FRUITFUL DESPITE PARAMOUNT'S ATTRACTIVE ASSETS NO OTHER COMPANY HAS EVER MADE AN UNSOLICITED OFFER FOR PARAMOUNT OR ATTEMPTED A HOSTILE BID IT ISN'T CLEAR WHETHER ANOTHER BIDDER MIGHT EMERGE TO TRY TO BREAK UP A PARAMOUNTVIACOM DEAL BY MAKING AN OFFER FOR PARAMOUNT SOME INDUSTRY EXECUTIVES SAID MR DAVIS HAS BEEN MORE MOTIVATED LATELY TO COMPLETE A TRANSACTION BECAUSE OF CONCERN OVER THE INTENTIONS OF CABLE TELEVISION MOGUL JOHN MALONE AND PROGRAMMING WIZARD BARRY DILLER WHO ALONG WITH COMCAST CORP CONTROL QVC NETWORK INC RUMORS HAVE CIRCULATED OVER THE PAST YEAR THAT MR MALONE CEO OF TELECOMMUNICATIONS AND CHAIRMAN OF LIBERTY MEDIA CORP AND MR DILLER QVC CHAIRMAN AND A FORMER HEAD OF THE PARAMOUNT STUDIO ARE INTERESTED IN A POSSIBLE PURCHASE OF PARAMOUNT MANY OBSERVERS ARGUE THAT VIACOM OFFERS THE BEST FIT FOR PARAMOUNT THE COMBINATION WOULDN'T FACE THE REGULATORY HURDLES THAT WOULD BAR A MERGER BETWEEN A HOLLYWOOD STUDIO AND A BROADCAST NETWORK FOR EXAMPLE TOGETHER THEY WOULD BE A POWERHOUSE IN CABLE AND BROADCAST PROGRAMMING AND DISTRIBUTION FILMED ENTERTAINMENT AND PUBLISHING VIACOM'S CABLE NETWORKS INCLUDE MTV NICKELODEON AND SHOWTIME PARAMOUNT PICTURES IS A LEADING MOVIE AND TV PRODUCTION STUDIO AND A HALFOWNER OF USA NETWORK BOTH COMPANIES OWN TELEVISION STATIONS AND PRODUCE AND SYNDICATE PROGRAMMING THAT COULD HELP FORM THE BASIS OF A FIFTH BROADCAST NETWORK PARAMOUNT ALSO OWNS MADISON SQUARE GARDEN THE NEW YORK KNICKS BASKETBALL TEAM AND PUBLISHING HOUSE SIMON & SCHUSTER 9309100133 930910 WHO'S NEWS WALBRO CORP WALBRO CORP CASS CITY MICH GARY L VOLLMAR 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF WALBRO AUTOMOTIVE CORP A SUBSIDIARY OF THIS MANUFACTURER OF AUTOMOTIVE AND SMALLENGINE FUEL SYSTEM COMPONENTS MR VOLLMAR HAD BEEN VICE PRESIDENTFINANCE AND TREASURER OF WALBRO HE WILL CONTINUE TO SERVE AS WALBRO'S CHIEF FINANCIAL OFFICER ON AN INTERIM BASIS 9309100132 930910 WHO'S NEWS FEDERAL EXPRESS CORP FEDERAL EXPRESS CORP MEMPHIS TENN RICHARD D SCHNEIDER MANAGING DIRECTOR CHICAGO METRO DISTRICT OF THIS AIREXPRESS COMPANY WAS PROMOTED TO VICE PRESIDENT CENTRAL REGION MR SCHNEIDER SUCCEEDS DAVID F REBHOLZ WHO WAS RECENTLY NAMED SENIOR VICE PRESIDENT SALES AND CUSTOMER SERVICE 9309100131 930910 WHO'S NEWS KENFIL INC KENFIL INC VAN NUYS CALIF DONALD ESTERS AND SYDNEY IRMAS WERE ELECTED DIRECTORS OF THIS MICROCOMPUTER SOFTWARE CONCERN INCREASING THE BOARD TO SEVEN MEMBERS MR ESTERS 54 YEARS OLD IS PRESIDENT OF STANDARD CABINET WORKS A PRIVATELY OWNED COMMERCIAL CABINET MAKER IN LOS ANGELES MR IRMAS 68 IS AN ATTORNEY AND FORMER CHAIRMAN OF A SOFTWARE COMPANY ACQUIRED ABOUT TWO YEARS AGO BY CHIPSOFT INC A SAN DIEGO PUBLISHER OF PERSONALFINANCE COMPUTER SOFTWARE 9309100130 930910 CREDIT RATING UNISYS CORP RATINGS ON 22 BILLION OF DEBT ARE BOOSTED BY S&P NEW YORK UNISYS CORP HAD ITS RATING RAISED BY STANDARD & POOR'S CORP ON SENIOR DEBT TO DOUBLEBMINUS FROM SINGLEBPLUS AS WELL AS OTHER RATINGS AFFECTING 22 BILLION OF DEBT S&P SAID THE UPGRADE REFLECTS THE INFORMATION SYSTEMS COMPANY'S SUSTAINED RETURN TO PROFITABILITY AND ITS REDUCED DEBT BURDEN THE COMPANY WAS REMOVED FROM S&P'S CREDITWATCH LIST THE RATING ALSO REFLECTS A HIGH DEGREE OF BUSINESS RISK ASSOCIATED WITH A DECLINING REVENUE BASE IN MAINFRAMES MAINTENANCE AND DEFENSE PRODUCTS WHICH ACCOUNTED FOR 63 OF 1992 REVENUE S&P SAID UNISYS IS SHIFTING TOWARD THE FASTERGROWTH BUT HIGHLY COMPETITIVE CLIENT SERVER AND SERVICES AND SYSTEMS INTEGRATION SEGMENTS S&P NOTED DESPITE SIGNIFICANT DEBT REDUCTIONS UNISYS' LEVERAGE REMAINS HIGH FOR A TECHNOLOGY COMPANY AND PREFERRED STOCK DIVIDENDS ARE A SIZABLE CALL ON CASH FLOW A STRONG CASH POSITION IN EXCESS OF 750 MILLION AS OF JUNE 30 1993 PROVIDES IMPORTANT SUPPORT FOR THE RATING S&P SAID 9309100129 930910 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED SEPT 3 ACCOUNTED FOR 14 OR AN AVERAGE 32 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 156 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 238 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 383 IN THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 573 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 361 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 66 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES AND NOMURA SECURITIES EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY SALOMON BROTHERS AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9309100128 930910 COMMODITIES SOYBEAN FUTURES PRICES MAY FALL CORN MAY RISE AS A RESULT OF USDA'S CROP PRODUCTION FORECAST BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SOYBEAN FUTURES PRICES ARE EXPECTED TO FALL AND CORN FUTURES PRICES TO RISE SLIGHTLY AS THE AGRICULTURE DEPARTMENT PREDICTED HIGHERTHANEXPECTED SOYBEAN PRODUCTION AND UNEXPECTEDLY LOW CORN PRODUCTION IN ITS MONTHLY CROP PRODUCTION REPORT THE USDA FORECAST THIS YEAR'S SOYBEAN CROP AT 191 BILLION BUSHELS UP FROM 190 BILLION BUSHELS IN ITS AUGUST REPORT THIS REFLECTED THE DEPARTMENT'S VIEW THAT FAVORABLE GROWING WEATHER IN AUGUST IMPROVED THE PROSPECTS OF A CROP THAT HAD BEEN PLAGUED EARLIER IN THE SUMMER BY TOO MUCH RAIN MOST GRAIN ANALYSTS HAD EXPECTED AN ESTIMATE OF ABOUT 186 BILLION BUSHELS AND WERE SURPRISED BY THE USDA'S HIGHER NUMBER EARLY CALLS WERE FOR SOYBEAN FUTURES PRICES TO FALL THREE TO FIVE CENTS A BUSHEL AT THE CHICAGO BOARD OF TRADE EARLY TODAY BUT SOME ANALYSTS ASSERT THAT THE MARKET MAY FALL FURTHER THAN THAT I THINK SOYBEANS ARE GOING TO BE THE WEAK HAND HERE SAID FRANK STEARNS GRAIN ANALYST FOR REFCO INC THEY COULD BE DOWN AS MUCH AS A DIME A BUSHEL ON THE OPENING MEANWHILE IN ANOTHER SURPRISE FOR THE GRAIN INDUSTRY THE USDA'S ESTIMATE OF CORN PRODUCTION FELL THE DEPARTMENT FORECAST A CORN CROP OF 723 BILLION BUSHELS DOWN FROM 742 BILLION BUSHELS IN LAST MONTH'S CROP PRODUCTION REPORT LAST YEAR US FARMERS PRODUCED A RECORD CORN CROP OF 948 BILLION BUSHELS THE CORN NUMBER SHOWED THAT FAVORABLE AUGUST WEATHER DID LITTLE TO HELP THE STUNTED CORN CROP IN THE WESTERN CORN BELT SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO EARLY CALLS WERE FOR CORN FUTURES PRICES TO RISE ONE TO TWO CENTS A BUSHEL ON THE OPENING AT THE CBOT BUT A LOWERTHANEXPECTED OPENING IN SOYBEAN FUTURES WOULD LIKELY DRAIN STRENGTH FROM THE CORN MARKET ANALYSTS SAID THEY NOTED THAT THE USDA REPORT FORECAST HIGHERTHANEXPECTED PRODUCTION OF COARSE GRAINS INCLUDING CORN SORGHUM OATS AND BARLEY ON A WORLDWIDE BASIS THE DEPARTMENT PREDICTED PRODUCTION OF 807 MILLION TONS OF COARSE GRAINS GLOBALLY UP FROM 800 MILLION TONS IN THE LAST REPORT BASICALLY OTHER COUNTRIES WILL TAKE AWAY SOME OF THE DEMAND FOR OUR CORN MR STEARNS SAID SO THE HIGHER CORN PRODUCTION NUMBER IN THE REPORT ISN'T AS BULLISH AS IT WOULD SEEM THE USDA FORECAST US PRODUCTION OF HARD RED WINTER WHEAT AT 628 MILLION BUSHELS DOWN FROM 686 MILLION BUSHELS IN LAST MONTH'S REPORT THAT REFLECTS SOME FARMERS' CROP LOSSES TO DISEASE RELATED TO THE UNUSUALLY WET WEATHER OF EARLY SUMMER ANALYSTS SAID TOTAL US WHEAT PRODUCTION IS NOW FORECAST AT 249 BILLION BUSHELS AT THE CBOT EARLY CALLS WERE FOR WHEAT FUTURES PRICES TO OPEN STEADY TO TWO CENTS HIGHER IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES FIRMED ON THE BUNDESBANK'S INTEREST RATE CUTS THE GERMAN CENTRAL BANK TRIMMED ITS KEY DISCOUNT AND LOMBARD RATES A HALF PERCENTAGE POINT EACH YESTERDAY ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY GAINED 290 TO SETTLE AT 35650 AN OUNCE ANALYSTS SAID THAT THE PRECIOUS METAL CONTINUES TO FOLLOW A PATTERN OF SHORTTERM PRICE APPRECIATION FOLLOWING RATE CUTS BY THE BUNDESBANK SUCH RATE CUTS WHICH TYPICALLY PUT DOWNWARD PRESSURE ON RATES GLOBALLY MAKE THE OPPORTUNITY COST OF OWNING GOLD LOWER AND HENCE TEND TO BOLSTER THE PRICE OF BULLION BUT THE GAINS POSTED BY GOLD YESTERDAY WERE NOT AS DRAMATIC AS PREVIOUS RISES IN THE WAKE OF GERMAN INTEREST RATE CUTS ANALYSTS AND TRADERS NOTED I'M NOT THAT IMPRESSED SAID BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER IN NEW YORK HE SAID THE TRUE TEST OF GOLD IN THE COMING WEEK WILL BE WHETHER IT CAN MAINTAIN SUPPORT ABOVE 350 AN OUNCE IN OTHER COMMODITY EXCHANGE ACTIVITY YESTERDAY SILVER FOR DECEMBER DELIVERY GAINED TWO CENTS TO SETTLE AT 4277 AN OUNCE COPPER FUTURES PRICES FELL SHARPLY IN NEW YORK FOLLOWING DECLINES IN THE BIG LONDON COPPER MARKET ON THE COMEX COPPER FOR DECEMBER DELIVERY FELL 220 CENTS TO 8280 CENTS A POUND IN LONDON COPPER PRICES TUMBLED FOLLOWING ACTION BY THE LONDON METAL EXCHANGE TO ALLEVIATE A TECHNICAL SQUEEZE IN THE MARKET DEALERS SAID THE SQUEEZE ON LONDON METAL MERCHANTS WHO HAD SOLD THE METAL SHORT ON EXPECTATIONS OF PRICE DECLINE RESULTED EARLIER IN THE WEEK IN AN UNUSUAL SITUATION WHERE SPOT PRICES WERE TRADING AT A PREMIUM OF THREE CENTS A POUND OR MORE THAN 3 OVER FUTURES PRICES IN NORMAL MARKETS SPOT PRICES SHOULD TRADE AT A DISCOUNT TO FUTURES PRICES BECAUSE OF THE TRANSPORT AND FINANCE COSTS ON METAL QUOTED FOR FUTURE DELIVERY TO COUNTER THE SQUEEZE WHICH WAS APPARENTLY PERPETRATED BY ASIAN BUYERS THE LONDON METAL EXCHANGE RULED LATE WEDNESDAY THAT IT WOULD LIMIT THE PREMIUM TO 023 CENT A POUND OR A QUARTER PERCENT ALLOWING METAL MERCHANTS HOLDING SHORT POSITIONS TO COVER THOSE POSITIONS AT MUCH REDUCED LOSSES AS A RESULT MERCHANTS THEN BOUGHT SPOT METAL TO MEET DELIVERY DEMANDS AND SOLD IT FORWARD FORCING FUTURES PRICES LOWER IN LONDON AND NEW YORK TRADERS SAID THE LME'S MOVE SEEMS TO HAVE ROBBED THE STRUGGLING COPPER FUTURES MARKET OF RECENT FORWARD MOMENTUM SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH IN NEW YORK COFFEE COFFEE FUTURES ROSE SHARPLY ON GROWING CONFIDENCE IN A NEW PRODUCTIONRETENTION SCHEME DUE TO TAKE EFFECT NEXT MONTH TRADERS SAID ON THE COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR DECEMBER DELIVERY JUMPED 340 CENTS TO 8220 CENTS A POUND THERE'S A GROWING IDEA IN THE MARKET THAT THE RETENTION SCHEME MAY BE A SUCCESS SAID MR O'NEILL THE MERRILL LYNCH STRATEGIST LATIN AND AFRICAN PRODUCERS RECENTLY AGREED TO AN EXPORTLIMITATION AGREEMENT SET TO TAKE EFFECT OCT 1 THE PACT IS AIMED AT LIFTING PRICES BY WITHHOLDING 20 OF EXPORTABLE COFFEE SUBJECT TO PREVAILING MARKET CONDITIONS 9309100127 930910 TECHNOLOGY LOTUS DEVELOPMENT SELLS MOST OF ITS STAKE IN DATASERVICES UNIT CAMBRIDGE MASS LOTUS DEVELOPMENT CORP SAID IT SOLD MOST OF ITS INTEREST IN ITS LOTUS ONESOURCE INFORMATIONSERVICES UNIT WHICH DISTRIBUTES FINANCIAL DATA ON COMPACT DISKS TO BANKS AND INVESTORS THE UNIT HAS ANNUAL REVENUE OF 35 MILLION AND HAS BEEN MODESTLY PROFITABLE AN EXECUTIVE SAID BUT THE COMPANY CONCLUDED ONESOURCE'S OFFERINGS CONFLICTED WITH THE COMPANY'S RELATIONSHIPS WITH OTHER INFORMATION PROVIDERS THROUGH ITS LOTUS NOTES SOFTWARE THE SALE WILL HAVE LITTLE EFFECT ON OPERATING RESULTS THE EXECUTIVE SAID THE NEW COMPANY IS OWNED BY A GROUP THAT INCLUDES MEMBERS OF MANAGEMENT AS WELL AS TWO VENTURECAPITAL FIRMS INFORMATION PARTNERS OF BOSTON AND WILLIAM BLAIR VENTURE PARTNERS OF CHICAGO LOTUS HAS RETAINED A MINORITY INVESTMENT OTHER TERMS WEREN'T DISCLOSED THE SOFTWARE MAKER SAID THE NEW COMPANY'S NAME IS ONESOURCE INFORMATION SERVICES INC DAN SCHIMMEL FORMERLY GENERAL MANAGER OF THE UNIT HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER 9309100126 930910 MONEY FUND ASSETS CLIMBED 960 BILLION IN THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 960 BILLION TO 58076 BILLION FROM 57116 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 648 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 404 BILLION TO 38925 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 408 TAXABLE MONEY MARKET FUNDS ROSE BY 263 BILLION TO 30545 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS ROSE BY 142 BILLION TO 8380 BILLION ASSETS OF THE 271 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 555 BILLION TO 19151 BILLION AMONG INSTITUTIONAL FUNDS ASSETS OF 220 TAXABLE MONEY MARKET FUNDS ROSE BY 468 BILLION TO 16950 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 8768 MILLION TO 2201 BILLION 9309100124 930910 INTERNATIONAL CADBURY TO BUY A&W BRANDS FOR 334 MILLION ACQUISITION REFLECTS INTENT BY BRITISH COMPANY TO BOOST US PRESENCE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CADBURY SCHWEPPES PLC GATHERING UP MORE OF THE US SOFTDRINK MARKET AGREED TO BUY A&W BRANDS INC OF WHITE PLAINS NY FOR 334 MILLION OR 2450 A SHARE THE MOVE PUSHED A&W SHARES UP 20 THE ACQUISITION BY THE BRITISH BEVERAGE AND CANDY COMPANY TOGETHER WITH AN INCREASE OF ITS STAKE IN DR PEPPER/SEVENUP COS TO 26 LAST MONTH SIGNALS CADBURY'S INTENT TO BECOME A MAJOR FACTOR IN THE 47 BILLION US SOFTDRINK BUSINESS CADBURY THE WORLD'S THIRDLARGEST SOFTDRINK COMPANY SAID THE PURCHASE OF A&W WILL INCREASE ITS US MARKET SHARE TO 56 FROM 34 NOT INCLUDING ITS SHARE OF DR PEPPER/SEVEN UP AND STRENGTHEN ITS POSITION AS THE FOURTHLARGEST PLAYER IN THE US AFTER COCACOLA CO PEPSICO INC AND DR PEPPER CADBURY'S US BRANDS INCLUDE SCHWEPPES CANADA DRY CRUSH SUNKIST AND MOTT'S AND SOFT DRINKS ACCOUNT FOR 57 OF ITS SALES THE PURCHASE OF A&W KNOWN FOR ITS ROOT BEER CREAM SODA AND COUNTRY TIME LEMONADE WILL GIVE THE TWO MORE CLOUT WITH BOTTLERS AND RETAILERS THE COMPANY SAID COSTS WILL BE CUT QUITE A BIT THOUGH THE TWO EMPLOY ONLY A FEW HUNDRED WORKERS IN THE US WHAT CADBURY IS SAYING TO THE WORLD IS THEY'RE BIG ENOUGH TO HAVE A SIGNIFICANT INFLUENCE ON THE US BEVERAGE INDUSTRY SAYS TIM POTTER AN ANALYST WITH SMITH NEW COURT A LONDON SECURITIES FIRM MR POTTER PREDICTED THAT CADBURY AND DR PEPPER WILL ULTIMATELY TIE THE KNOT EITHER THROUGH AN OUTRIGHT ACQUISITION OR A JOINT VENTURE IN WHICH DR PEPPER WOULD MANAGE CADBURY'S US BRANDS IN EXCHANGE FOR A BIG EQUITY STAKE AND BOARD MEMBERSHIP HELLEN BERRY OF THE NEW YORK CONSULTING FIRM BEVERAGE MARKETING CORP SAID SUCH A COMBINATION BY CREATING A STRONG NO 3 WOULD INCREASE COMPETITION ESPECIALLY AS PEPSI AND COCACOLA DIVERSIFY INTO NONCOLA DRINKS THAT WOULD GIVE THEM A MUCH MUCH STRONGER CLOUT IN THE TOTAL SOFT DRINK INDUSTRY SHE SAID HOWEVER IT'S UNCERTAIN HOW SOON ANY SUCH COMBINATION MIGHT HAPPEN AFTER CADBURY INCREASED ITS DR PEPPER STAKE FROM 57 DR PEPPER ADOPTED A POISON PILL MEASURE TO THWART HOSTILE SUITORS DAVID WELLINGS CADBURY'S CHIEF EXECUTIVE OFFICER SAID YESTERDAY THE POISON PILL DOESN'T CHANGE THE STRATEGIC OR FINANCIAL LOGIC FOR AN ACQUISITION OF DR PEPPER BUT CHAIRMAN DOMINIC CADBURY SAID THE COMPANY HAS NO IMMEDIATE INTEREST IN BUYING THE REST OF DR PEPPER WE HAVE NO HOSTILE INTENTIONS HE ADDED OUR AIM WOULD BE TO SEE WHAT FURTHER BUSINESS OPPORTUNITIES THERE ARE CADBURY SAID IT WOULD EXPECT BOARD REPRESENTATION AND WILL CONTINUE TALKS BUT AN ACQUISITION OF HIGHLY LEVERAGED DR PEPPER APPEARS EXPENSIVE NOW FOR CADBURY WHICH HAS DEBT OF 600 MILLION 9249 MILLION OFFICIALS OF DR PEPPER WHICH HAS BEEN SUED BY SHAREHOLDERS SEEKING TO RESCIND THE POISON PILL DIDN'T RETURN CALLS SEEKING COMMENT THE BRITISH COMPANY WILL FUND THE A&W PURCHASE AND ITS DR PEPPER INVESTMENT WITH A 324 MILLION EQUITY OFFERING CADBURY CALLED THE PURCHASE PRICE FAIR BUT RICHARD DAVIS AN ANALYST WITH WESSELS ARNOLD & HENDERSON IN MINNEAPOLIS SAID THE PRICE ALTHOUGH HIGHER THAN PREVIOUSLY RUMORED WAS LOW IT EITHER MEANS OUR EXPECTATIONS AS ANALYSTS WERE WRONG ABOUT THE EARNINGS OR IT'S TOO CHEAP HE SAID A&W SHARES MOVED UP 4 OR 20 TO 2425 IN NATIONAL OVERTHECOUNTER TRADING CADBURY SHARES CLOSED UNCHANGED AT 470 PENCE A SHARE ON THE LONDON STOCK EXCHANGE REFLECTING IN PART THE NEW EQUITY OFFERING SEPARATELY CADBURY REPORTED A 32 INCREASE IN PRETAX PROFIT IN THE FIRST HALF TO 1662 MILLION FROM 1259 MILLION SALES ROSE 16 TO 171 BILLION FROM 147 BILLION THE COMPANY ALSO RAISED ITS FIRSTHALF DIVIDEND 91 TO 360 PENCE A SHARE FROM 330 PENCE CADBURY SAID NEITHER ITS DR PEPPER INVESTMENT NOR ITS A&W PURCHASE WOULD AFFECT 1993 EARNINGS NOTE CADBURY ESTIMATES ITS SHARE TO BE 34 AND A&W TO BE 22 9309100123 930910 TRACKING TRAVEL BY JONATHAN DAHL APPARENTLY EVERYONE IS UPSET ABOUT A NEW TAX CHANGE AFFECTING CORPORATE TRAVELERS EXCEPT THE TRAVELERS TRAVEL INDUSTRY REPRESENTATIVES WERE ONE OF THE STRONGEST OPPONENTS OF A PLAN IN CONGRESS TO CUT THE DEDUCTIONS THAT BUSINESSES TAKE FOR MEALS AND ENTERTAINMENT TO 50 OF EXPENSES FROM 80 THE PLAN WAS RECENTLY PASSED AS PART OF PRESIDENT CLINTON'S NEW BUDGET DESPITE WARNINGS FROM SOME TRAVEL AGENTS AND EXECUTIVES THAT THE LEGISLATION WOULD SLASH BUSINESS TRAVEL BUT A NEW SURVEY OF 400 CORPORATE TRAVEL MANAGERS FOUND ABOUT HALF OF THEM THINK THE TAX CHANGE WON'T HAVE ANY IMPACT ON BUSINESSTRAVEL BUDGETS ABOUT 40 THOUGHT THE CHANGE WOULD ONLY SOMEWHAT AFFECT BUDGETS AND JUST 4 THOUGHT THE CHANGE WOULD CUT TRAVEL SPENDING SIGNIFICANTLY IT'S ONE OF THOSE CHANGES MOST BUSINESSES CAN PROBABLY LIVE WITH SAYS JOHN HINTZ PAST PRESIDENT OF THE NATIONAL BUSINESS TRAVEL ASSOCIATION HE SAYS THE CHANGE COULD SERVE AS A TIEBREAKER WHEN A COMPANY ISN'T SURE IT NEEDS TO PAY FOR AN EMPLOYEE'S TRIP BUT FOR ANY COMPANY THAT NEEDS TO TRAVEL TO CONDUCT BUSINESS THIS ISN'T GOING TO STOP THEM MR HINTZ NOTES THAT WHEN THE SAME DEDUCTION WAS CUT A FEW YEARS AGO TO 80 FROM 100 TRAVEL INDUSTRY OFFICIALS COMPLAINED THEN TOO BUT WE DIDN'T REALLY SEE ANY CHANGE IN BUSINESS TRAVEL BECAUSE OF IT HE SAYS STILL IT ISN'T AS IF CORPORATE AMERICA WON'T BE AFFECTED AT ALL AMERICAN EXPRESS SAYS THAT FOR MANY COMPANIES THE CHANGE IN DEDUCTIBLE EXPENSES COULD BOOST AFTERTAX MEALS AND ENTERTAINMENT COSTS 13 BUSINESS MEALS AND ENTERTAINMENT ACCOUNT FOR 25 OF THE 130 BILLION SPENT BY COMPANIES ON TRAVEL ANNUALLY AMERICAN EXPRESS SAYS IF YOU BOOK A COMPACT RENTAL CAR YOUR CHANCES OF GETTING A FREE UPGRADE TO A LARGER CAR MAY BE IMPROVING SEVERAL CARRENTAL FIRMS INCLUDING HERTZ AND NATIONAL CAR RENTAL SYSTEMS ARE GRADUALLY INCREASING THEIR PROPORTION OF LARGERSIZE CARS AS A RESULT CONSUMER ADVOCATES SAY THERE IS A SMALL BUT NOW GREATER CHANCE THAT TRAVELERS RESERVING COMPACT CARS MAY ARRIVE AND DISCOVER THAT THERE ARE NO COMPACTS LEFT SINCE CARRENTAL COMPANIES TRADITIONALLY OVERBOOK SOME CARRENTAL FIRMS ALSO OVERBOOK COMPACT CARS JUST TO MAKE SURE THEY DON'T LOSE CUSTOMERS TO COMPETITORS THIS ISN'T BAD NEWS THOUGH WHEN COMPACTS AREN'T AVAILABLE MOST COMPANIES SIMPLY UPGRADE THE CUSTOMER TO THE LARGER CAR AT NO ADDITIONAL CHARGE AND THAT CAN BE A GREAT DEAL BECAUSE MIDSIZE AND FULLSIZE CARS CAN COST 70 MORE A WEEK THAN COMPACT CARS IT CAN HAPPEN BUT I WOULDN'T TAKE THAT CHANCE SAYS A SPOKESMAN FOR HERTZ BUT CONSUMER ADVOCATES SAY THAT CONSUMERS WHO PREFER BUT DON'T NECESSARILY NEED MIDSIZE CARS MIGHT CONSIDER RESERVING COMPACT CARS IF I REALLY NEEDED THE LARGER CAR I WOULDN'T TAKE THE CHANCE BEFORE BUT I MIGHT NOW SAYS MICHAEL ASHINGTONPICKETT WHO RUNS A CONSUMER NEWSLETTER BEARING HIS NAME BASED IN ORLANDO FLA WHY PAY EXTRA THE CHANCES OF GETTING AN UPGRADE VARY CONSIDERABLY BY COMPANY CONSUMER ADVOCATES SAY ABOUT A YEAR AGO CHRYSLER'S THRIFTY RENTACAR SYSTEM OFFICIALS CONCEDE CUSTOMERS BOOKING A COMPACT CAR HAD A BETTER THAN 50 CHANCE OF GETTING A MIDSIZE CAR FOR NO EXTRA CHARGE BUT THRIFTY SAYS IT NOW HAS INCREASED THE NUMBER OF ITS COMPACT CARS SO THE ODDS ARE DRASTICALLY CUT PRETTY MUCH IF YOU BOOK A COMPACT THAT'S WHAT YOU'LL GET A SPOKESWOMAN INSISTS REFUNDS OF AMTRAK TICKETS ARE SOMETIMES A LITTLE TRYING WITH AIRLINE TICKETS YOU HAVE THE CHOICE OF GOING BACK TO THE AIRLINE OR YOUR TRAVEL AGENT WHICHEVER IS EASIER BUT AMTRAK TYPICALLY REQUIRES PASSENGERS WHO BUY A TICKET FROM A TRAVEL AGENCY TO RETURN IT TO THE AGENCY NOT AMTRAK THAT ISN'T ALWAYS CONVENIENT PARTICULARLY IF THE TRAVELER BOUGHT THE TICKET FROM AN OUTOFTOWN AGENCY ALSO SOME AGENTS ARE TOO BUSY OR PUT OFF BY REQUESTS FOR REFUNDS THEIR PROFITS AFTER ALL COME FROM COMMISSIONS SELLING NOT REFUNDING TICKETS AMTRAK JUST ISN'T AS EQUIPPED OR AUTOMATED FOR REFUNDS AS AIRLINES ARE SAYS RICHARD BERNS OWNER OF EQUITY TRAVEL IN SOMERS NY AMTRAK REFUNDS ARE JUST A LITTLE MORE COMPLICATED BOTH FOR THE TRAVELER AND THE TRAVEL AGENT AN AMTRAK SPOKESWOMAN SAID SHE HAD NEVER HEARD OF ANY COMPLAINTS ABOUT THE REFUND POLICY IN ALL ABOUT 40 OF AMTRAK TICKETS ARE SOLD BY TRAVEL AGENTS SHE SAID THAT'S JUST THE AMTRAK POLICY SHE SAID MOST PEOPLE WANT TO GO TO THE TRAVEL AGENTS AND AVOID LINES AT OUR STATIONS SHE DID SAY THAT AMTRAK MAY MAKE EXCEPTIONS SOMETIMES AND REFUND AN AGENTISSUED TICKET DIRECTLY BUT THAT COULD MEAN HAVING TO TAKE A TRIP TO AN AMTRAK STATION ONLY TO DISCOVER YOU AREN'T AN EXCEPTION TRAVELERS APPARENTLY VOTED WITH THEIR WALLETS AND STAYED HOME MUCH OF THIS SUMMER WHEN AIRLINES REFUSED TO DROP FARES DOMESTIC AIR TRAFFIC IN JULY FELL 9 FROM A YEAR EARLIER WHEN DISCOUNTING BY AIRLINES WAS HEAVY ACCORDING TO THE AIR TRANSPORT ASSOCIATION THAT WAS THE LARGEST MONTHLY DECLINE THIS YEAR TRAFFIC ALSO FELL 5 IN JUNE AGAIN WHEN FARES WERE HIGH UNTIL JUNE AIR TRAFFIC HAD RISEN EVERY MONTH THIS YEAR COMPARED WITH THE YEAREARLIER MONTH STATISTICALLY SPEAKING 1992 WAS ONE OF THE BETTER YEARS FOR AIRLINE SAFETY THE FATAL ACCIDENT RATE THAT YEAR WAS 0058 FATALITY FOR EACH 100000 FLIGHTS ACCORDING TO FIGURES PUBLISHED IN TRAVEL WEEKLY A TRADE MAGAZINE SINCE 1982 THE RATE HAS BEEN HIGHER SEVEN OTHER YEARS THE HIGHEST RATE WAS IN 1989 WHEN THERE WAS 0166 FATALITY FOR EACH 100000 FLIGHTS THE LOWEST RATE IN THE PAST 10 YEARS WAS IN 1984 WHEN THERE WAS 0018 FATALITY FOR EACH 100000 FLIGHTS 9309100122 930910 HERCULES INC IS CITED BY OSHA FOR FAILING TO FIX SAFETY HAZARDS WASHINGTON THE LABOR DEPARTMENT PROPOSED FINING HERCULES INC AN EXPLOSIVES PRODUCER 63 MILLION FOR FAILING TO FIX A NUMBER OF HEALTH HAZARDS AT A NEW JERSEY PLANT IN NOVEMBER 1989 THE AGENCY'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ISSUED CITATIONS FOR HEALTH HAZARDS AFTER AN EXPLOSION AT THE 1200ACRE PLANT IN KENVIL NJ INJURED 12 WORKERS THREE OF THE WORKERS WERE SERIOUSLY INJURED THE AGENCY SAID HERCULES KNEW OR SHOULD HAVE KNOWN OF THE HAZARDS HERCULES SETTLED THE ORIGINAL CHARGES FOR 100000 LESS THAN HALF THE AMOUNT OSHA HAD PROPOSED BUT OSHA SAID FOLLOWUP INSPECTIONS UNCOVERED THAT THE COMPANY HADN'T FIXED PROBLEMS CITED AFTER THE BLAST INCLUDING PROBLEMS THAT OSHA CONCLUDED LED TO THE EXPLOSION FOR EXAMPLE OSHA SAID THE COMPANY HADN'T MOVED A CONTROL ROOM AND A ROAD THAT WERE TOO CLOSE TO WHERE GUNPOWDER WAS BEING PROCESSED OSHA ALSO SAID THE COMPANY DIDN'T KEEP PROPER RECORDS OF WORKPLACE INJURIES GIVEN HERCULES'S PRIOR HISTORY IN LIFEENDANGERING INCIDENTS THE GRAVITY OF THE EXPLOSIONRELATED UNABATED CONDITIONS CANNOT BE OVEREMPHASIZED SAID JAMES STANLEY OSHA'S NEW YORK REGIONAL ADMINISTRATOR HERCULES HAS 15 DAYS TO APPEAL THE CHARGES RELATING TO THE 300WORKER FACILITY WHERE IT MAKES ABOUT SIX MILLION POUNDS OF GUNPOWDER A YEAR A SPOKESMAN FOR THE WILMINGTON DEL AEROSPACE AND CHEMICAL COMPANY SAID HERCULES HAD NOT HAD A CHANCE TO REVIEW THE CITATION YET BUT ADDED THE COMPANY BELIEVES THAT ALL THE ITEMS IN THE 1991 SETTLEMENT HAVE BEEN PROPERLY ABATED AND THAT THE PLANT IS OPERATING IN A SAFE MANNER THE SPOKESMAN SAID THE CITATIONS MAY STEM FROM DISAGREEMENTS BETWEEN OSHA AND HERCULES ABOUT HOW BEST TO RESOLVE THE SAFETY ISSUES THE SPOKESMAN NOTED THAT THE COMPANY PLANS TO CONTEST ALL APPLICABLE ITEMS 9309100121 930910 DIVIDEND NEWS UNITED COUNTIES BANCORP UNITED COUNTIES BANCORP CRANFORD NJ RAISED ITS QUARTERLY DIVIDEND 17 TO 70 CENTS A SHARE FROM 60 CENTS A SHARE PAYABLE NOV 1 TO STOCKHOLDERS OF RECORD OCT 22 UNITED COUNTIES THE PARENT OF UNITED COUNTIES TRUST CO HAS ASSETS OF 15 BILLION 9309100120 930910 FINANCING BUSINESS NATIONSBANK CORP NATIONSBANK CORP CHARLOTTE NC SAID IT PLANS TO OFFER 300 MILLION OF FIVEYEAR SENIOR NOTES NATIONSBANK SAID THE OFFERING IS PART OF A 4 BILLION SHELF REGISTRATION FOR CORPORATE DEBT SECURITIES AND PREFERRED AND COMMON STOCK PREVIOUSLY DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION PROCEEDS WILL BE USED FOR THE PENDING ACQUISITION OF CERTAIN ASSETS OF U S WEST INC'S U S WEST FINANCIAL SERVICES INC UNIT NATIONSBANK SAID THE BANK ADDED THAT THE FIVEYEAR NONCALLABLE SENIOR NOTES HAVE A COUPON INTEREST RATE OF 5125 THE OFFERING WILL BE SOLD THROUGH UNDERWRITERS LED BY NATIONSBANC CAPITAL MARKETS INC BEAR STEARNS & CO LEHMAN BROTHERS AND MERRILL LYNCH & CO 9309100119 930910 BTR POSTS 99 RISE IN PROFIT FOR 1ST HALF AGREES TO SELL UNIT SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH INDUSTRIAL CONGLOMERATE BTR PLC REPORTED THAT PRETAX PROFIT ROSE 99 FOR THE FIRST HALF OF 1993 AS MOST OF ITS MAJOR MARKETS MOVED VERY SLOWLY OUT OF RECESSION BTR ALSO SAID IT AGREED TO SELL NEWEY & EYRE GROUP LTD A BIRMINGHAM ENGLAND ELECTRICAL SYSTEMS DISTRIBUTOR TO HAGEMEYER NV OF THE NETHERLANDS FOR AS MUCH AS 165 MILLION 2543 MILLION PRETAX PROFIT ROSE TO 602 MILLION FROM 548 MILLION SALES ROSE 13 TO 487 BILLION FROM 431 BILLION THE RESULTS WERE IN LINE WITH MARKET EXPECTATIONS BUT THE COMPANY'S STOCK FELL 175 PENCE OR 44 TO 3815 PENCE ON THE LONDON STOCK EXCHANGE THE COMPANY RAISED ITS CASH INTERIM DIVIDEND BY 65 TO 495 PENCE A SHARE FROM 465 PENCE AND PROPOSED A 50 ENHANCED SCRIP DIVIDEND FOR THE INTERIM WORTH 7425 PENCE ENHANCED SHARE DIVIDENDS HAVE BECOME POPULAR AMONG UNITED KINGDOM COMPANIES SINCE CHANGES IN THE UK TAX LAW EARLY THIS YEAR MADE CASH DIVIDENDS LESS VALUABLE TO PENSION FUNDS AND WEALTHY INDIVIDUALS LOOKING AHEAD BTR SAID THE OUTLOOK REMAINS UNCERTAIN FOR ANY MEANINGFUL UPTURN IN THE SECOND HALF AUSTRALIA STANDS AS THE MOST HOPEFUL AND CONTINENTAL EUROPE AS THE MOST DIFFICULT VOLUMES IN THE MARKET REMAIN WELL BELOW THEIR CAPACITIES HOWEVER THE COMPANY ADDED WE CONTINUE TO OBTAIN BENEFITS FROM OUR RECENT ACQUISITIONS THE BIGGEST OF THESE WAS BTR'S PURCHASE AT THE END OF 1991 OF UK AEROSPACE COMPANY HAWKER SIDDELEY GROUP PLC FOR 155 BILLION AFTER A LONG HOSTILE BATTLE WITH HAWKER'S MANAGEMENT BTR SAID THAT THE RECOVERY IN THE US ECONOMY APPARENTLY SO MARKED IN THE LAST QUARTER OF 1992 HAS NOT MAINTAINED THE SAME MOMENTUM IN THE FIRST HALF OF 1993 IN BRITAIN BTR SAID EVIDENCE THAT THE RECOVERY IS TRANSLATING INTO SIGNIFICANT INCREASES IN CORPORATE PROFITABILITY IS STILL INCONCLUSIVE BTR SAID THE MONEY RAISED FROM NEWEY & EYRE WHICH INCLUDES A 110 MILLION INITIAL PAYMENT AND LATER PAYMENTS OF AS MUCH AS 55 MILLION WILL BE USED TO REDUCE BORROWINGS THE DEAL IS EXPECTED TO CLOSE OCT 4 9309100117 930910 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 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 309 60 TO 119 DAYS 317 120 TO 179 DAYS 318 180 TO 239 DAYS 323 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 314 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 271 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 304 ONE MONTH 306 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 311 120 DAYS 312 150 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 5/16 3 3/16 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 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE 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 670 60 DAYS 678 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 669 60 DAYS 679 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 490 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309100116 930910 MARKETING & MEDIA GRAHAM STEPS DOWN AT WASHINGTON POST SON IS NEW CHAIRMAN WASHINGTON WASHINGTON POST CO SAID KATHARINE GRAHAM STEPPED DOWN AFTER 20 YEARS AS CHAIRMAN AND WILL BE SUCCEEDED BY HER SON DONALD E GRAHAM THE COMPANY'S CHIEF EXECUTIVE OFFICER THE DEPARTURE OF THE MATRIARCH OF THE GRAHAM PUBLISHING EMPIRE CAME AS LITTLE SURPRISE TO MEDIA ANALYSTS WHO HAVE BEEN ANTICIPATING MR GRAHAM'S ASCENT TO THE TOP SPOT MRS GRAHAM 76 YEARS OLD HAS NOT BEEN INVOLVED IN DAYTODAY OPERATIONS AT THE COMPANY SINCE MAY 1991 WHEN MR GRAHAM ASSUMED THE CHIEF EXECUTIVE OFFICER'S TITLE IN THE PAST SEVERAL YEARS AS THE HEAD OF WASHINGTON POST CO MRS GRAHAM DIRECTED THE EXPANSION OF THE COMPANY'S CABLE TELEVISION PROPERTIES AND THE ACQUISITION OF TELEVISION STATIONS MR GRAHAM 48 WILL REMAIN THE COMPANY'S CHIEF EXECUTIVE OFFICER AND PUBLISHER OF THE WASHINGTON POST NEWSPAPER A COMPANY SPOKESMAN SAID MR GRAHAM WOULD NOW ASSUME MORE OF THE TRADITIONAL FUNCTIONS HANDLED BY THE CHAIRMAN ALAN G SPOON 42 WILL SUCCEED MR GRAHAM AS PRESIDENT OF THE COMPANY MR SPOON BECAME EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER IN MAY 1991 FOLLOWING A STINT AS PRESIDENT OF NEWSWEEK A MAGAZINE OWNED BY WASHINGTON POST HE RETAINS THE TITLE OF CHIEF OPERATING OFFICER MRS GRAHAM REMAINS A DIRECTOR OF THE COMPANY AS CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE WHICH WILL ALSO INCLUDE MESSRS GRAHAM AND SPOON 9309100115 930910 DIVIDEND NEWS MBIA RAISES PAYOUT GIVES ELLIOTT NEW ROLE AS COMPANY CHAIRMAN ARMONK NY MBIA INC A MUNICIPAL BOND INSURANCE CONCERN RAISED ITS DIVIDEND 24 AND SAID DAVID H ELLIOTT PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL ASSUME THE ADDITIONAL JOB OF CHAIRMAN EFFECTIVE JAN 1 MR ELLIOTT 51 YEARS OLD SUCCEEDS WILLIAM O BAILEY WHO WILL RETAIN HIS SEAT ON THE COMPANY'S BOARD MR ELLIOTT AND MR BAILEY 67 HAVE PROVIDED THE COMPANY'S SENIOR MANAGEMENT SINCE ITS INCORPORATION IN 1987 AT THAT TIME MR BAILEY WAS CHAIRMAN AND CHIEF EXECUTIVE AND MR ELLIOTT WAS PRESIDENT MR ELLIOTT ASSUMED THE ADDITIONAL TITLE OF CHIEF EXECUTIVE IN 1991 MBIA RAISED ITS QUARTERLY DIVIDEND TO 26 CENTS A SHARE FROM 21 CENTS PAYABLE OCT 15 TO HOLDERS OF RECORD SEPT 20 MBIA THROUGH ITS MBIA CORP UNIT INSURES MUNICIPAL BONDS INCLUDING NEW ISSUES AND BONDS TRADED IN THE SECONDARY MARKET IN 1992 THE COMPANY HAD ABOUT 3279 MILLION IN REVENUE 9309100114 930910 TECHNOLOGY WORKER EXERCISE PROGRAMS BENEFIT FIRMS STUDY SAYS ATLANTA COMPANIES THAT HELP EMPLOYEES GET LEANER IF NOT MEANER CAN SHAPE UP THEIR OWN BOTTOM LINES ACCORDING TO A FEDERAL STUDY THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN A REPORT PUBLISHED TODAY ESTIMATES THAT 56 OF MEN AND 61 OF WOMEN IN THE US NEVER OR RARELY EXERCISE THAT INACTIVITY RESULTS IN 57 BILLION A YEAR SPENT ON TREATMENT OF HEART DISEASE TO COUNTER THAT TREND THE AGENCY IS URGING COMPANIES TO PROVIDE EXERCISE CLASSES AND THE LIKE FOR THEIR WORKERS NOTING THAT THE PROGRAMS CAN RESULT IN SIGNIFICANT SAVINGS THE CDC POINTS TO CANADIAN LIFE ASSURANCE CO IN TORONTO WHICH OFFERS ITS 1200 EMPLOYEES EXERCISE CLASSES SEVERAL TIMES A WEEK AN ONSITE GYM AND EXERCISE EQUIPMENT FOR EACH WORKER CANADIAN LIFE SAVED 679 IN INSURANCE CLAIMS EVERY YEAR COMPARED WITH A SIMILAR COMPANY THAT HAD NO EXERCISE PROGRAM ACCORDING TO THE CDC IN ALL CANADIAN LIFE SAW A RETURN OF 685 FOR EACH DOLLAR INVESTED IN THE EXERCISE PROGRAM ACCORDING TO THE STUDY 30 MINUTES OF MODERATE EXERCISE ANYTHING FROM WALKING TO YARDWORK FIVE TIMES A WEEK WILL SHARPLY LOWER THE RISK OF HEART DISEASE 9309100113 930910 WHO'S NEWS NEW YORK'S MUSEUM OF MODERN ART SAYS DIRECTOR WILL RETIRE NEW YORK RICHARD E OLDENBURG WILL RETIRE FROM HIS POSITION AS DIRECTOR OF NEW YORK'S MUSEUM OF MODERN ART ON JUNE 30 1994 AFTER 21 YEARS IN THE POST THE MUSEUM ANNOUNCED HIS UNEXPECTED RESIGNATION GIVEN TO THE MUSEUM'S BOARD WEDNESDAY OPENS ONE OF THE MOST INFLUENTIAL AND PRESTIGIOUS JOBS IN THE MUSEUM WORLD DURING MR OLDENBURG'S TENURE HE OVERSAW THE DOUBLING OF THE MUSEUM'S EXHIBITION SPACE AND INSTITUTED SEVERAL BLOCKBUSTER EXHIBITIONS INCLUDING THE PABLO PICASSO RETROSPECTIVE IN 1980 THE ANDY WARHOL RETROSPECTIVE IN 1989 AND THE HENRI MATISSE EXHIBITION LAST FALL WHICH RESULTED IN RECORDBREAKING ATTENDANCE FOR THE 64YEAROLD INSTITUTION IT'S A BIGGER PLACE THAN THE ONE I FOUND MR OLDENBURG SAID IN A TELEPHONE INTERVIEW HE ADDED THAT HE WAS VERY PLEASED ABOUT THE SUCCESS OF THE EXHIBITIONS HE HAD OVERSEEN AND THE GROWTH OF THE MUSEUM'S ENDOWMENT DURING HIS DIRECTORSHIP TO 180 MILLION FROM 20 MILLION MR OLDENBURG 59 YEARS OLD WHO WAS APPOINTED DIRECTOR EMERITUS AND HONORARY TRUSTEE SAID HE PLANS VERY MUCH TO BE A PARTICIPANT IN THE SEARCH FOR HIS SUCCESSOR AND MAY TAKE A SABBATICAL AFTER THAT SEARCH IS COMPLETED 9309100112 930910 USE OF INTERVENTION IN EXCHANGE MARKETS IS BACKED BY STUDY WASHINGTON A NEW STUDY ON THE IMPACT OF GOVERNMENT INTERVENTION IN FOREIGN EXCHANGE MARKETS HAS SOME UNCOMFORTABLE ADVICE FOR SECRETIVE CENTRAL BANKERS TELL THE PUBLIC IN A BOOK PUBLISHED BY THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK TWO SCHOLARS CONCLUDED THAT INTERVENTION BUYING OR SELLING CURRENCIES IN INTERNATIONAL MARKETS CAN HAVE A MORE POWERFUL EFFECT ON EXCHANGE RATES THAN PREVIOUSLY THOUGHT THE AUTHORS KATHRYN DOMINGUEZ OF HARVARD UNIVERSITY AND JEFFREY FRANKEL OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAID INTERVENTION IS PARTICULARLY EFFECTIVE WHEN THE CENTRAL BANKS OR FINANCE MINISTRIES INVOLVED TELL THE MARKETS WHAT THEY'RE DOING CONTRARY TO MUCH ACTUAL PRACTICE THE AUTHORITIES SHOULD MAKE THEIR INTERVENTION ACTIVITIES PUBLIC THE STUDY SAID IN DISCUSSING THEIR FINDINGS THE ECONOMISTS CITED THE AUG 19 MOVE BY THE US AND JAPAN TO HALT THE RISE OF THE YEN AGAINST THE DOLLAR AS A PERFECT EXAMPLE OF EFFECTIVE INTERVENTION THE COORDINATED ACTION BY THE FEDERAL RESERVE AND THE BANK OF JAPAN CAUGHT THE MARKETS BY SURPRISE IN PART BECAUSE IT CONFLICTED WITH EARLIER US INDICATIONS THAT WASHINGTON WASN'T PREPARED TO INTERVENE TO SUPPORT THE DOLLAR THE TREASURY THEN ANNOUNCED IT WAS ACTING TO STOP THE DOLLAR'S SLIDE AND THE DOLLAR QUICKLY ROSE 4 AGAINST THE YEN AND HAS REMAINED AT THE HIGHER LEVEL THE STUDY BASED ON PREVIOUSLY SECRET FOREIGN EXCHANGE TRADING RECORDS FROM THE FED AND THE GERMAN BUNDESBANK LOOKED AT 11 EXAMPLES OF INTERVENTION TO CHANGE THE DOLLARMARK RELATIONSHIP BETWEEN 1985 AND 1991 INTERVENTION IS MORE POTENT THAN CONVENTIONAL ECONOMIC WISDOM SUGGESTS THE STUDY SAID AND CAN CHANGE EXCHANGE RATES OVER THE SHORT TERM EVEN WITHOUT SHIFTS IN UNDERLYING ECONOMIC POLICY 9309100111 930910 INTERNATIONAL IMF HOLDS AID TO RUSSIA CITING FALTERING REFORMS WASHINGTON THE INTERNATIONAL MONETARY FUND HAS TOLD RUSSIA NOT TO EXPECT ANY MORE LENDING UNTIL MOSCOW GETS ITS FALTERING ECONOMIC REFORMS BACK ON TRACK UNDER PRESSURE FROM THE CLINTON ADMINISTRATION THE IMF AGREED LAST SPRING TO LOOSEN ITS CRITERIA FOR LOANS TO RUSSIA IT PROMISED 3 BILLION IN IMMEDIATE LENDING IF THE CASHSTRAPPED GOVERNMENT TOOK EVEN PRELIMINARY STEPS TO BRING ITS BUDGET DEFICIT UNDER CONTROL AND REDUCE INFLATION IN JUNE THE IMF RELEASED 15 BILLION OF THOSE FUNDS WHILE EXPRESSING STRONG MISGIVINGS ABOUT THE PACE OF ECONOMIC REFORM BUT WITH PRESIDENT BORIS YELTSIN SO FAR UNABLE TO IMPOSE DISCIPLINE ON RUSSIA'S CENTRAL BANK AND MONTHLY INFLATION RUNNING AT 15 TO 20 THE IMF IS NOW REFUSING TO RELEASE THE REMAINING 15 BILLION THIS TIME THE US ISN'T EXPECTED TO COME TO MOSCOW'S DEFENSE EARLIER THIS WEEK TREASURY UNDERSECRETARY LAWRENCE SUMMERS WARNED RUSSIA AGAINST BACKSLIDING ON ECONOMIC REFORMS SUCH CONCERNS ALSO COULD MAKE IT MORE DIFFICULT FOR THE CLINTON ADMINISTRATION TO WIN SENATE APPROVAL FOR A FOREIGN AID BILL THAT INCLUDES 25 BILLION IN ASSISTANCE FOR RUSSIA RUSSIA IS ALSO IN ARREARS TO THE US FOR GRAIN PURCHASES A PROBLEM THAT WILL BE TAKEN UP IN MEETINGS NEXT WEEK 9309100110 930910 LEISURE & ARTS BOOKSHELF FEMINIST ELDER PONDERS OLD AGE BY MARYLIN BENDER JUST IN THE NICK OF TIME AS TRIAL BALLOONS FOR THE CLINTON HEALTH PLAN HAVE BEEN LEAKING CONFLICTING REPORTS OF CAPS AND CUTS FOR MEDICARE COMES BETTY FRIEDAN'S WISE AND CHALLENGING EXPLORATION OF THE STATE OF THE ELDERLY THE FOUNTAIN OF AGE SIMON & SCHUSTER 653 PAGES 25 THE MOTHER OF THE WOMEN'S LIBERATION MOVEMENT A TITLE THE 72YEAROLD MS FRIEDAN CONFESSES SHE HATED BECAUSE IT EVOKED HER OWN DREAD OF AGING IS TRYING ONCE MORE TO CATALYZE A REVOLUTION AS SHE DID IN 1963 WITH THE FEMININE MYSTIQUE NOW AS THEN THE FEMINIST LEADER DRAWS ON PERSONAL EXPERIENCE TO PUSH FOR PROFOUND SOCIAL CHANGE HER RELIABLE GEIGER COUNTER SHE SAYS TELLS HER THAT THE EMANCIPATION OF WOMEN FROM NARROW SEXDEFINED ROLES AS WIVES AND CHILDBEARERS HAS ALTERED THE MEANING OF GROWING OLDER FOR THEM AND FOR MEN AS WELL MIGHT THE STEADILY INCREASING SPAN OF YEARS PAST 65 OFFER SOMETHING OTHER THAN STEADY DECLINE AND DETERIORATION COULD AGING POSSIBLY BE A GRAND ADVENTURE MS FRIEDAN BELIEVES SO BUT SHE MAINTAINS THAT THE PRESENT AMERICAN WAY OF TREATING THE SENIOR POPULATION DISTORTS REALITY AND WASTES ECONOMIC RESOURCES A BRILLIANT CONCEPTUALIZER WITH AN UNCANNY SENSE OF TIMING SHE POSES HARD QUESTIONS INSTEAD OF ORGANIZING AGE AROUND HOPELESS ATTEMPTS TO DENY DEATH SUCH AS ARTIFICIAL CARE OF NO LONGER YOUTHFUL BODIES AND CURE OF INCURABLE DISEASES WOULD IT NOT BE PREFERABLE TO LIVE OUR LIFE AND OUR DEATH AS PART OF A NATURAL CONTINUUM ANSWERING YES REQUIRES AN OVERHAUL OF CULTURAL HABITS AND SOCIAL POLICIES IN 1970 MS FRIEDAN WAS ELBOWED OUT OF THE PRESIDENCY OF THE NATIONAL ORGANIZATION FOR WOMEN NOW THE POLITICAL VEHICLE SHE HAD HELPED TO FOUND BY YOUNGER RADICAL FEMINISTS WHO OFTEN PUSHED A LESBIAN AGENDA WHICH SHE FEARED WOULD ALIENATE MIDDLEOFTHEROAD SUPPORTERS SINCE THEN SHE HAS WAGED CAMPAIGNS TO ADDRESS WOMEN'S LARGER CONCERNS SUCH AS FAMILY CARE AND ECONOMIC SURVIVAL HER UNIVERSITYBASED THINK TANKS AND SEMINARS HAVE BEEN FUNDED BY CORPORATIONS AND FOUNDATIONS WHOSE MALE CEO'S REGARD HER AS THE LEAST THREATENING OF FEMINIST ADVOCATES THIRTY YEARS AGO MS FRIEDAN BLAMED CONSUMER PRODUCT ADVERTISING FOR THE FEMININE MYSTIQUE THAT KEPT EDUCATED WOMEN IN DOMESTIC ISOLATION THIS TIME AROUND SHE TARGETS AN ASSORTMENT OF INDUSTRIES AND PROFESSIONS THAT PROFIT FROM THE MYTH OF AGE DEFINED AS DISEASE THE NETWORK INCLUDES PHYSICIANS AND PHARMACEUTICAL COMPANIES JOINED BY THE MEDIA IN PROMOTING ESTROGEN THERAPY A HALFBILLIONDOLLAR MARKET AND STILL GROWING AS BABY BOOMERS TROOP OVER THE HORIZON THE SILENT PASSAGE A HYSTERICAL BOOK BY GAIL SHEEHY MADE MENOPAUSE THE CHIC MALADY OF 1992 MS FRIEDAN SAYS THAT SHE WAS PROMPTED TO UNDERTAKE THE DECADE OF RESEARCH FOR HER BOOK AFTER SHE OBSERVED SO MANY VITAL WOMEN SAILING THROUGH MENOPAUSE WITHOUT RESORTING TO RISKY HORMONE DOSAGE MS FRIEDAN ASSAULTS NURSING HOME OPERATORS FINANCIAL PLANNERS HAWKING EXPENSIVE NURSING HOME CARE INSURANCE AND REAL ESTATE DEVELOPERS OF ASSISTED LIVING AND LIFETIME CONGREGATE CARE FACILITIES THAT PREMATURELY SEGREGATE MEN AND WOMEN IN GHETTOS FOR THE AGED THE RIGHT TO DIE CRUSADE SHE WARNS DIVERTS SERIOUS ATTENTION FROM BEING PAID TO DEVELOPING HEALTH CARE HOUSING AND OTHER SERVICES THAT ENABLE OLDER PEOPLE TO KEEP ON LIVING INDEPENDENTLY AND WORKING PRODUCTIVELY MEANWHILE VAST AMOUNTS ARE SPENT ON HIGHTECH INTERVENTIONS FOR TERMINAL DISEASE WHILE MEDICARE DOES NOT COVER THE HOME CARE AND NONMEDICAL THERAPIES THAT CAN ENHANCE THE QUALITY OF REMAINING LIFE IN THE ELDERLY AT MUCH LESS COST WHATEVER NATIONAL HEALTH CARE PLAN EMERGES IT IS CLEAR THAT RESOURCES WILL HAVE TO BE RATIONED MANAGED CARE IS RATIONED CARE BUT WHY MS FRIEDAN ASKS SHOULD AGE BE THE CRITERION WHY NOT LIKELIHOOD OF RECOVERY TO FULL FUNCTION AT ANY AGE WHY NOT LIMIT CORONARY BYPASS OPERATIONS FACE LIFTS OR THE EXORBITANT PROFITS MADE BY THE OWNERS OF NURSING HOMES AND LEASERS OF DIALYSIS UNITS THE FOUNTAIN OF AGE OVERFLOWS WITH ENERGY AND POSITIVE OUTLOOK THE AUTHOR BACKS UP HER THESIS WITH TORRENTIAL RESEARCH FROM SCIENTIFIC STUDIES TO ANECDOTAL EVIDENCE HER PRODUCTIVE ELDERS TEND TO COME FROM BUSINESS AND PROFESSIONAL CIRCLES SIMILAR TO HER OWN LOTS OF DIVORCED SINGLES FIND SOLACE IN COMMUNAL ARRANGEMENTS WITH LOVING OFFSPRING AND GRANDCHILDREN TO TAKE UP THE SLACK SCARCELY A CHILDLESS LONER A MINORITY OR A POOR PERSON IN SIGHT THOUGH HAD SHE REACHED OUT TO VARIOUS STRUGGLING ETHNIC GROUPS SHE MIGHT HAVE FOUND INTERESTING EXAMPLES OF EXTENDEDFAMILY SUPPORT FOR THE AGED IN PART THIS IS A SELFHELP BOOK MS FRIEDAN OFFERS CONCRETE ANSWERS TO THE PARADOX OF RETIREMENT FROM WORK ONE OF THE TWO EXPERIENCES FREUD DEEMED BASIC TO HUMAN IDENTITY DESPITE LEGISLATION OUTLAWING AGE DISCRIMINATION IN EMPLOYMENT RETIREMENT IS STILL OFTEN COERCED AS FOR THE SECOND BASIC LOVE THE EXAMPLES SHE REPORTS OF ELDER JOY IN THE BEDROOM AND ELSEWHERE ARE ENCOURAGING MS BENDER IS FORMER BUSINESS EDITOR OF THE NEW YORK TIMES 9309100109 930910 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE US TRADE AND DEVELOPMENT AGENCY GRANTED 700000 TO MACAO'S CIVIL AVIATION DEPARTMENT FOR A STUDY TO HELP THE PORTUGUESE ENCLAVE TURN ITS NEW AIRPORT INTO A CARGO HUB AND AIRCRAFTMAINTENANCE CENTER FOR THE BOOMING REGION THE MACAO AIRPORT TO OPEN IN MID1995 IS LIKELY TO BENEFIT FROM SPILLOVER FROM HONG KONG'S CROWDED KAI TAK AIRPORT AT LEAST UNTIL A NEW HONG KONG AIRPORT IS COMPLETED IN MID1997 AT THE EARLIEST MACAO ALSO IS POISED TO TAP INTO SOARING PASSENGER AND FREIGHT TRAFFIC IN THE PEARL RIVER DELTA REGION OF SOUTHERN CHINA THE EIGHTMONTH STUDY TO BE LED BY AN INDEPENDENT US TEAM COULD ENCOURAGE US ENGINEERING AND AVIATION CONCERNS TO GET INVOLVED IN THE MACAO AIRPORT AND US AIRLINES TO CONSIDER OPERATING THERE AN AVIATION CONSULTANT SAID MACAO OFFERS THE OPPORTUNITY FOR AMERICAN COMPANIES TO GET INTO THE GROUNDWORK AN OPPORTUNITY THEY NEVER HAVE HAD IN HONG KONG UAL CORP'S UNITED AIRLINES WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND FEDERAL EXPRESS CORP ARE AMONG US CARRIERS ALREADY EXPLORING MACAO'S POSSIBILITIES SALES OF NEW CONDOMINIUMS IN THE TOKYO AREA ADVANCED IN AUGUST AS PRICES AND JAPANESE LENDING RATES WERE BOTH LOWER IN A 57 JUMP FROM A YEAR EARLIER 1354 CONDOS WENT ONTO THE MARKET AND 84 OF THOSE WERE SOLD TOPPING THE 80 LEVEL FOR THE FIFTH CONSECUTIVE MONTH THE PRIVATELY RUN REAL ESTATE ECONOMY INSTITUTE SAID PRICES AVERAGED 422835 DOWN 31 FROM THE LATE1980S SPECULATIVE RUNUP THE INSTITUTE PREDICTED AT LEAST 5000 UNITS A MONTH WILL BE OFFERED IN SEPTEMBER THROUGH NOVEMBER A PERIOD WHEN THE CONDO MARKET TRADITIONALLY PICKS UP BULGARIA IMPOSED MEASURES AIMED AT PROTECTING THE ECONOMY FROM LOWERPRICED IMPORTS THE DECREES ALLOW QUOTAS AND EXTRA DUTIES FOR COMMODITIES THAT ARE IMPORTED IN LARGE QUANTITIES AND HARM DOMESTIC MANUFACTURERS IMPORT LICENSES MAY BE CANCELED OR AMENDED MINIMUM IMPORT PRICES MAY BE SET FOR COMMODITIES TO PROTECT LOCAL PRODUCERS AND MINIMUM PRICES WERE SET FOR IMPORTS OF SOME FARM GOODS ALCOHOLIC BEVERAGES AND CIGARETTES THE GOVERNMENT HOPES TO CURTAIL WHAT IT TERMED IMPORTERS' EXCESS PROFITS ECUADOR SOLD A 1 STAKE IN THE NATIONAL CEMENT COMPANY TO THE PUBLIC IN A TRIAL RUN OF A PRIVATIZATION PROGRAM THE 4345 SHARES OF CEMENTO NACIONAL THE COUNTRY'S BIGGEST CEMENT MAKER SOLD QUICKLY FOR 192 EACH OR 834240 THE GOVERNMENT STILL OWNS 46 OF CEMENTO NACIONAL WHICH PRODUCES 15 MILLION TONS OF CEMENT A YEAR AND EARNED 61 MILLION IN 1992 ECUADOR INTENDS TO SELL OFF DOZENS OF STATE FIRMS INCLUDING UTILITIES AND AN AIRLINE MOST ARE UNPROFITABLE AND OVERSTAFFED HUNGARY IS INVESTIGATING ALLEGATIONS OF BANK FRAUD INVOLVING AS MUCH AS 212 MILLION BETWEEN 25 AND 30 BANKS IN BUDAPEST AND OUTLYING AREAS ARE BEING EXAMINED THE NATIONAL BANK OF HUNGARY TOLD PARLIAMENT THAT THE CASES GENERALLY RESULTED FROM IRRESPONSIBLE CREDIT PRACTICES IN WHICH BANK OFFICIALS TOOK MONEY FOR BACKING CREDIT RISKS OF BORROWERS THE BANK SAID THIS OCCURRED MOSTLY AT RURAL SAVINGS COOPERATIVES AND INVOLVED STARTUP LOANS FOR SMALL VENTURES INFLATION CONTINUED TO PLAGUE THE 10 MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES IN JULY THE CIS STATISTICS COMMITTEE THE RELIABILITY OF ITS DATA UNCERTAIN BECAUSE OF ECONOMIC CHANGES IN THE FORMER SOVIET STATES SAID WHOLESALE PRICES SKYROCKETED 30 FROM JUNE AND RETAIL PRICES JUMPED 21 IN THE FIRST SEVEN MONTHS WHOLESALE PRICES WERE 10 TIMES AND RETAIL PRICES 11 TIMES HIGHER THAN AVERAGE YEAREARLIER LEVELS CIS INDUSTRIAL OUTPUT SLID AN INFLATIONADJUSTED 14 IN JULY THE SEVENMONTH DROP WAS 16 FRANCE LOGGED A TRADE SURPLUS FOR MAY THAT MARKED A RECORD SINCE WORLD WAR II SURPRISING ANALYSTS YET PARIS ECONOMISTS SAID THE SHARP GROWTH OF THE SURPLUS TO 191 BILLION MIGHT NOT BE A FLUKE THE MAY TOTAL WIDENED FROM A REVISED 102 BILLION IN APRIL INITIALLY POSTED AS 134 BILLION THE FIGURES HAVE BEEN VOLATILE BECAUSE OF A LACK OF DETAILED CUSTOMS INFORMATION ON EUROPEAN COMMUNITY TRADE SINCE THIS YEAR'S MARKET UNIFICATION BARRING A SHARP DOWNWARD REVISION NEXT MONTH THE LATEST DATA SHOW THAT FRANCE HAS REGAINED SOME OF ITS COMPETITIVE EDGE ECONOMISTS SAID CITING STRONG EXPORTS ANALYSTS WERE IMPRESSED BY FRANCE'S INDUSTRIAL PERFORMANCE WITH CAPITAL GOODS LEADING THE WAY IN MAY THE TRADE SURPLUS IN NONMILITARY INDUSTRIAL GOODS EXPLODED TO 126 BILLION FROM 4887 MILLION WHILE THE MILITARY SURPLUS INCHED UP TO 1951 MILLION FROM 1686 MILLION FRANCS IMPORTS WERE LITTLE CHANGED IN MAY AT 1554 BILLION WHILE EXPORTS INCREASED 57 TO 1745 BILLION EUROPEAN COMMUNITY UNEMPLOYMENT ROSE TO 106 IN JULY FROM 95 A YEAR EARLIER REFLECTING THE 12 MEMBER STATES' ECONOMIC SLUMP THE EC PREDICTS A RECORD 12 JOBLESS RATE NEXT YEAR IRAN AND LEADERS OF SEVERAL FAITHS FAULTED AN ASSYRIAN CHURCH BISHOP'S VISION OF TEHRAN'S DESTRUCTION BY AN EARTHQUAKE AT NOON SUNDAY BUT MANY OF THE CITY'S SEVEN MILLION RESIDENTS TAKING NO CHANCES MADE WEEKEND PLANS TO BE AWAY FROM THE EARTHQUAKEPRONE IRANIAN CAPITAL 9309100108 930910 TECHNOLOGY INTEL MCI SIGN PACT TOWARD INTEGRATING PHONE SERVICES PCS SANTA CLARA CALIF INTEL CORP SAID IT SIGNED AN AGREEMENT WITH MCI COMMUNICATIONS CORP TO DEVELOP WAYS TO COMBINE PERSONAL COMPUTERS AND TELEPHONES THE COMPANIES DIDN'T ANNOUNCE ANY SPECIFIC PRODUCTS BUT SAID THEY ARE LOOKING AT WAYS TO USE TELEPHONES IN CONJUNCTION WITH COMPUTERS FOR SUCH PURPOSES AS VIDEO CONFERENCING SENDING AND RECEIVING DATA AND WORKING WITH AUDIO INTEL AND MCI A TELEPHONE COMPANY SAID THEIR COMBINED EXPERTISE WILL ALLOW THEM TO TAP INTO A MARKET FOR SUCH TECHNOLOGY INTEL WHICH SUPPLIES COMPUTER CHIPS USED IN PERSONAL COMPUTERS HAS BEEN PURSUING ALLIANCES THAT WILL HELP IT EXTEND ITS REACH TO OTHER TYPES OF EQUIPMENT SUCH AS TELEPHONES LAST MONTH INTEL ANNOUNCED IT SIGNED AN AGREEMENT WITH PACIFIC BELL TO WORK TOWARD INTEGRATING NEW AUDIO VIDEO AND DATA APPLICATIONS FOR USERS OF PCS UNDER THE AGREEMENT INTEL AND PACIFIC BELL A UNIT OF SAN FRANCISCOBASED PACIFIC TELESIS GROUP WILL COLLABORATE TO INTEGRATE PCS AND TELEPHONES SO PCS CAN BE USED FOR SUCH THINGS AS VIDEO CONFERENCING INTEL HAS ALSO SET UP AGREEMENTS WITH OTHER REGIONAL BABY BELLS NATIONWIDE 9309100107 930910 TECHNOLOGY DIGITAL EQUIPMENT CORP TO UNVEIL PC CHIP TODAY MAYNARD MASS DIGITAL EQUIPMENT CORP TODAY WILL UNVEIL A PERSONALCOMPUTER CHIP THAT THE COMPANY SAYS DELIVERS MORE PROCESSING POWER AT A LOWER PRICE THAN RIVAL CHIPS FROM INTEL CORP OR MOTOROLA INC THE COMPUTER MAKER'S CHIP WHICH EMPLOYS REDUCEDINSTRUCTIONSET OR RISC TECHNOLOGY TARGETS INTEL'S PENTIUM AND THE POWERPC CHIP WHICH IS BACKED BY A CONSORTIUM OF MOTOROLA APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP IT IS AIMED AT THE HIGH END OF THE PC MARKET RUNS MICROSOFT CORP'S WINDOWS NT OPERATING SYSTEM AND OFFERS THE NEW PCI LOCAL BUS OR INTERCONNECT TECHNOLOGY A DIGITAL EXECUTIVE SAID THE 21066 CHIP PART OF THE COMPANY'S ALPHA LINE WILL BE PRICED AT 385 EACH FOR 5000 OR MORE AND 366 IN QUANTITIES OF 20000 OR MORE HE ALSO SAID IT WILL BE THE FIRST RISC MICROPROCESSOR TO INCLUDE INTEGRATED ON THE CHIP ITSELF THE STANDARD PCI INTERCONNECT THAT TYPICALLY COSTS A COMPUTER MAKER AN ADDITIONAL 70 TO 100 A UNIT LINLEY GWENNAP EDITOR OF MICROPROCESSOR REPORT AN INDUSTRY NEWSLETTER CALLED THE NEW CHIP AGGRESSIVELY PRICED WITH MORE SPEED THAN PENTIUM AT AROUND HALF THE PRICE THE DIGITAL EXECUTIVE SAID THE COMPANY IS IN TALKS WITH COMPUTER MAKERS INTERESTED IN ADOPTING THE CHIP 9309100106 930910 BLACKSTONE GROUP FUND IS SHOPPING IN HONG KONG LEVERAGED BUYOUT FUNDS ARE JUMPING ON THE EMERGINGMARKETS BANDWAGON BLACKSTONE GROUP LP A NEW YORK SECURITIES COMPANY SAID ITS MERCHANTBANKING FUND PLANS TO INVEST ABOUT 155 MILLION IN ALCO HOLDINGS LTD A HONG KONG COMPANY THAT MAKES AUDIO PRODUCTS SUCH AS HOME STEREOS AND COMPACT DISC PLAYERS ALCO SELLS UNDER BRAND NAMES SUCH AS SONY GOLDSTAR AND CASIO IN MASS MERCHANDISERS WALL STREET HAS BEEN PROMOTING INVESTMENTS IN EMERGING MARKETS SUCH AS LATIN AMERICA EASTERN EUROPE AND ASIA THAT COULD GROW FASTER THAN THOSE OF DEVELOPED NATIONS BUT BUYOUT FUNDS TYPICALLY INVEST IN MATURE STABLE COMPANIES IN INDUSTRIES LESS SUSCEPTIBLE TO RAPID FLUCTUATIONS IN VALUE THE BLACKSTONE INVESTMENT WILL TAKE THE FORM OF NOTES CONVERTIBLE INTO ABOUT A 20 STAKE IN ALCO IT'S THE FIRST TIME BLACKSTONE'S 800 MILLION FUND HAS MADE AN INVESTMENT WITHOUT GAINING CONTROL BLACKSTONE PRESIDENT STEPHEN A SCHWARZMAN SAID ALCO IS CAPABLE OF VERY SUBSTANTIAL GROWTH PARTICULARLY SINCE ALCO'S LARGEST CUSTOMER IS A COMPANY 52 OWNED BY SONY CORP A LONGTIME BLACKSTONE CLIENT 9309100105 930910 LETTERS TO THE EDITOR DEEP DENIAL ON THE IMMIGRATION ISSUE JULIAN SIMON WRITING ON YOUR AUG 4 EDITORIAL PAGE SAYS THAT A RECENT LOS ANGELES COUNTY STUDY ON IMMIGRATION STOKED THE FIRES OF NATIVISM AS THE GRANDSON OF IMMIGRANTS I AM AMUSED BY MR SIMON'S CHILDISH SMEAR TACTIC OF SUBSTITUTING NAME CALLING FOR REASONED ARGUMENT AT THE SAME TIME I AM CONCERNED THAT HIS DISTORTIONS OF FACT MAY CONFUSE SOME OF YOUR READERS MR SIMON IGNORES THE DISTINCTION BETWEEN LEGAL AND ILLEGAL IMMIGRATION LEGAL IMMIGRATION WHICH I AND ALL DECENT AMERICANS SUPPORT IS ONE OF THE GREATEST STRENGTHS AND INDEED GLORIES OF THIS COUNTRY ILLEGAL IMMIGRATION IS AN AFFRONT TO LAW ABIDING IMMIGRANTS WHO WAIT PATIENTLY TO COME TO AMERICA AND IT IS ALSO A SERIOUS FINANCIAL DRAIN MR SIMON MISLEADS YOUR READERS BY BLURRING THE DISTINCTIONS BETWEEN LEGAL AND ILLEGAL IMMIGRANTS THE LOS ANGELES COUNTY STUDY WHICH WAS REQUESTED BY ALL SUPERVISORS REPUBLICAN AND DEMOCRAT WAS A CAREFUL ANALYSIS OF THE PROBLEM IT CONCLUDED THAT ILLEGAL IMMIGRANTS AND THEIR CHILDREN IMPOSE A 143 BILLION PER YEAR BURDEN ON LOS ANGELES COUNTY IN HEALTH AND WELFARE JUSTICE AND EDUCATION ON THE OTHER SIDE OF THE LEDGER ILLEGAL ALIENS GENERATE REVENUE TO THE COUNTY OF ONLY 362 MILLION TOTAL REVENUES GENERATED BY THESE ILLEGALS TO ALL LEVELS OF GOVERNMENT AMOUNT TO 9032 MILLION THE NET IMPACT ON THE COUNTY BUDGET IS CATASTROPHIC AND THE NET IMPACT ON AMERICAN TAXPAYERS MORE GENERALLY IS A HALFBILLION DOLLARS A YEAR AGAIN THIS IS JUST FOR LOS ANGELES COUNTY SIXTYTHREE PERCENT OF ALL CHILDREN BORN IN OUR COUNTY HOSPITALS AT TAXPAYER EXPENSE ARE BORN TO ILLEGAL ALIEN MOTHERS SUCH CHILDREN NOW REPRESENT 30 OF ALL AFDC CASES IN LOS ANGELES COUNTY AND THEIR ANNUALIZED AFDC COSTS TOTAL OVER 400 MILLION MR SIMON COMPLETELY IGNORES A PROBLEM THAT THE RESIDENTS OF LOS ANGELES COUNTY DO NOT HAVE THE LUXURY OF IGNORING THE ONSLAUGHT OF ILLEGALALIEN CRIMINALS IN LOS ANGELES COUNTY ILLEGAL ALIENS ACCOUNT FOR MORE THAN 11 OF ALL INMATES MR SIMON ALSO CLAIMS THAT THE LOS ANGELES COUNTY STUDY DID NOT CONSIDER IMMIGRANTS WHO ENTERED BEFORE 1980 THIS IS INACCURATE THE HUNDREDS OF THOUSANDS OF ILLEGAL ALIENS IN THE COUNTY WHO ENTERED BEFORE 1980 AND WERE GRANTED AMNESTY WERE INCLUDED IN THE STUDY BESIDES ASSAILING SUPPOSED NATIVISTS AS OPPOSED TO ALIENISTS MR SIMON IGNORES THE GROWING NUMBERS IN THE US CONGRESS AND THE EXECUTIVE BRANCH LED BY PRESIDENT CLINTON WHO HAVE RECOGNIZED THAT IMMIGRATION LAW REFORM IS SORELY NEEDED HE CHALLENGES THOSE WHO QUESTION WHETHER IMMIGRANTS RIP OFF THE WELFARE SYSTEM DOES HE NOT CONSIDER IT A VALID LINE OF QUESTIONING TO ASK TO WHAT EXTENT IMMIGRANTS USE THE WELFARE SYSTEM AFTER ALL OUR IMMIGRATION LAW PROVIDES FOR SCREENING OUT PERSONS WHO ARE LIKELY TO BECOME A PUBLIC CHARGE MR SIMON ASSERTS THAT IMMIGRANTS DO NOT STEAL JOBS FROM NATIVE BORN AMERICANS WITHOUT KNOWING WHAT CONSTITUTES THE THEFT OF A JOB IT IS PATENTLY FALSE FOR HIM TO ASSERT THAT NO IMMIGRANTS ARE HOLDING JOBS THAT OTHERWISE MIGHT BE HELD BY AMERICANS SIMILARLY IT IS PATENTLY FALSE TO ASSERT THAT NO LEGAL IMMIGRANT WORKERS ARE DISPLACED BY ILLEGAL IMMIGRANTS THE QUESTION MR SIMON SHOULD BE TRYING TO ANSWER AS ARE OTHER RESEARCHERS IS TO WHAT EXTENT THIS OCCURS ONLY BY ANSWERING THOSE QUESTIONS CAN PUBLIC POLICY BE RESPONSIBLY SHAPED DENIAL IS NOT HELPFUL IN A RECENT EXCHANGE I HAD WITH JULIAN SIMON ON CNN'S CROSSFIRE I CHALLENGED HIS CONTENTIONS BY SAYING BUT YOU'RE ASKING EVERYONE TO DETACH THEMSELVES FROM THE MOORINGS OF COMMON SENSE MR SIMON RETORTED THAT'S EXACTLY WHAT ECONOMICS DOES IN HIS ARTICLE FOR YOU HE AGAIN PROVES THAT HIS ECONOMICS AT LEAST RUN CONTRARY TO BASIC COMMON SENSE UNDER HIS NOVEL METHODOLOGY AN INCREASE IN THE LABOR SUPPLY DOES NOT DECREASE LABOR'S COST SOMEHOW BY USING DATA OFTEN 20 YEARS OLD MR SIMON CONTINUES TO SPIN OUT A MYTHOLOGY REGARDLESS OF THE FACTS HE NOTES THAT BETWEEN 1960 AND 1977 THE EVIDENCE SHOWED THAT IMMIGRATION DID NOT AFFECT THE UNEMPLOYMENT RATE IN ANY SIGNIFICANT WAY IN 1993 THE PICTURE IS SOMEWHAT DIFFERENT IN ALL MAJOR IMMIGRANTRECEIVING STATES AND THE TOP SIX IMMIGRANTRECEIVING CITIES INCLUDING LOS ANGELES/LONG BEACH NEW YORK CITY CHICAGO SAN DIEGO ANAHEIM SANTA ANNA AND MIAMI THE UNEMPLOYMENT RATES ARE SUBSTANTIALLY ABOVE THE NATIONAL AVERAGE CONGRATULATIONS TO MR SIMON ON SUCH A REFRESHING COHERENT AND POWERFUL REBUTTAL TO A SERIES OF RECENT ARTICLES IN THE JOURNAL PROMOTING NATIVISM AND ANTIIMMIGRATION AGENDA XENOPHOBIC HYSTERIA IN AMERICA TENDS TO INCREASE IN BAD ECONOMIC TIMES AS AN ASIAN AMERICAN I AM PARTICULARLY SENSITIVE TO A RELATED ISSUE THAT OFTEN GETS LOST IN THE IMMIGRATION POLEMICS MOST SCHOLARS AGREE THAT THE CURRENT ANNUAL CEILING ON IMMIGRATION ROUGHLY 400000 IS TOO LOW BE THAT AS IT MAY WE MUST ENSURE THAT THE CURRENT DISCRIMINATORY PRACTICES ON DISTRIBUTION OF THE OVERALL QUOTA ROOTED IN RACIAL AND OTHER BIASES ARE OUTLAWED FOR EXAMPLE WE RECENTLY ALLOTTED A LARGE NUMBER OF GREEN CARDS BY PURE LOTTERY ADVERTISING IN LOCAL NEWSPAPERS BUT IT WAS RESTRICTED TO WESTERN READ WHITE EUROPE NO SUCH LOTTERY WAS CONDUCTED IN AFRICA LATIN AMERICA OR ASIA HAITIAN BOAT PEOPLE ARE ECONOMIC REFUGEES BUT FOR SOME REASON WHITE RUSSIANS ARE NOT BY A STROKE OF MISGUIDED GENIUS SOME POLITICIANS HAVE BEEN ABLE TO LEGALIZE THEIR OWN BIASES BY MAKING AN INHERENTLY UNFAIR NATIONAL QUOTA SYSTEM APPEAR QUITE FAIR TO THE UNINFORMED BY THIS SYSTEM THE CHINESE ONE BILLION PEOPLE AND THE INDIANS 800 MILLION PEOPLE ARE HELD TO THE SAME NUMERICAL QUOTA AS THE NORWEGIANS THREE MILLION PEOPLE IF OTHER FACTORS ARE CONSTANT THIS GIVES THE SCANDINAVIANS 300 TO 1 ODDS AGAINST THE CHINESE AND THE INDIANS IRRESPECTIVE OF THEIR QUALIFICATION FAMILY SITUATION AND DEMAND FOR THEIR SKILLS IN THE THE US 9309100104 930910 NISSAN MOTOR MAY SELL SOME STOCKHOLDINGS TOKYO NISSAN MOTOR CO BATTERED BY A DOWNTURN IN AUTO SALES SAID IT MAY SELL SOME OF ITS STOCKHOLDINGS TO MAKE UP FOR A SHORTFALL IN EARNINGS IN THE SECOND HALF OF ITS FISCAL YEAR A NISSAN SPOKESMAN WOULDN'T DISCLOSE THE AMOUNT OF STOCK THE AUTO MAKER IS CONSIDERING SELLING BUT THE NIHON KEIZAI SHIMBUN A JAPANESE BUSINESS DAILY REPORTED THAT THE FIGURE IS LIKELY TO BE 60 BILLION YEN 5682 MILLION JAPANESE AUTO MAKERS HAVE BEEN HURT BY A SEVERE SLUMP IN DOMESTIC CAR SALES AND THE STRONG YEN BUT NISSAN HAS BEEN HIT WORSE THAN MOST FOR THE FIRST SEVEN MONTHS OF THIS YEAR THE COMPANY'S DOMESTIC SALES WERE DOWN 88 IN VOLUME EARLIER THIS YEAR NISSAN DECIDED TO CLOSE ONE OF ITS JAPANESE AUTO PLANTS THE COMPANY WHICH POSTED AN UNCONSOLIDATED PRETAX LOSS OF 2625 BILLION YEN FOR THE YEAR ENDED MARCH 31 HAS ESTIMATED IT WILL BREAK EVEN THIS YEAR NOW HOWEVER SAID THE NISSAN SPOKESMAN IT APPEARS IT WILL BE DIFFICULT TO MEET NISSAN'S PROJECTION OF A 40 BILLION YEN FOR SECONDHALF PRETAX PROFIT THUS THE COMPANY MAY UNLOAD SOME STOCK THE SPOKESMAN ADDED 9309100103 930910 INTERNATIONAL LEHMAN BROTHERS SUED IN MAXWELL STOCKLENDING LONDON LIQUIDATORS SEEKING TO RECOVER CASH MISSING FROM THE PENSION FUNDS OF THE MAXWELL MEDIA EMPIRE SUED THE LONDON OPERATIONS OF LEHMAN BROTHERS INC SEEKING 100 MILLION 154 MILLION FOR ALLEGED STOCKLENDING IMPROPRIETIES IN A SERIES OF TRANSACTIONS BEGINNING IN 1989 LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS LENT FUNDS TO THE MAXWELL ORGANIZATION AGAINST STOCKS AS COLLATERAL THE NEW YORKBASED INVESTMENT BANK DENIES ANY WRONGDOING THE LONDON ACCOUNTING FIRM OF ROBSON RHODES ALLEGES IN THE LAWSUIT THAT LEHMAN BROTHERS IMPROPERLY ACCEPTED STOCKS TAKEN FROM MAXWELL PENSION FUNDS ROBSON RHODES IS THE COURTAPPOINTED LIQUIDATOR OF BISHOPSGATE INVESTMENT MANAGEMENT LTD A MANAGER OF FUNDS FOR THE MAXWELL EMPIRE LEHMAN BROTHERS SAID IT WOULD FIGHT THE MATTER IN COURT WE TOTALLY REJECT THE CLAIMS THE US BROKERAGE SAID WE ENGAGED IN BONA FIDE BUSINESS TRANSACTIONS UNDER A LEGITIMATE STOCKLOAN ARRANGEMENT AND HAD NO NOTICE OF ANY IMPROPRIETIES ROBSON RHODES LAWYERS CONTEND THAT LEHMAN BROTHERS SHOULD HAVE KNOWN THAT SOME OF THE EQUITY ASSETS IN QUESTION COULDN'T LEGALLY BE TAKEN FROM THE PENSION FUNDS 9309100102 930910 INTERNATIONAL CUBA WILL ALLOW PEOPLE IN 100 TRADES TO GO INTO BUSINESS FOR THEMSELVES BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL CUBA WHICH HAS CLUNG TO SOCIALISM AS THE REST OF THE SOCIALIST WORLD EMBRACES THE FREE MARKET SAID IT WOULD CAREFULLY ALLOW TRADESPEOPLE IN MORE THAN 100 OCCUPATIONS TO GO INTO BUSINESS FOR THEMSELVES AMONG THE NEWLY LIBERALIZED OCCUPATIONS ARE TAXI DRIVERS MECHANICS PLUMBERS CARPENTERS PAINTERS HAIRDRESSERS COBBLERS COOKS DOMESTICS CRAFTSPEOPLE FARM PRODUCTS SALES AND COMPUTER PROGRAMMERS ACCORDING TO THE OFFICIAL NEWSPAPER GRANMA THE NEWLY PUBLISHED REGULATIONS PROHIBIT UNIVERSITY GRADUATES ESPECIALLY DOCTORS COMPANY DIRECTORS AND MANAGEMENT PERSONNEL FROM GOING INTO PRIVATE PRACTICE BUT RETIREES HOUSEWIVES AND WORKERS LAID OFF OR WORKING PART TIME AS A RESULT OF CUBA'S ECONOMIC CRISIS WILL BE ALLOWED TO TAKE ADVANTAGE OF THE ECONOMIC OPENING AS LONG AS THEY DON'T EMPLOY OTHERS ACCORDING TO THE REGULATIONS INDIVIDUALS NEED PERMISSION FROM LOCAL AUTHORITIES TO WORK FOR THEMSELVES AND WILL HAVE TO PAY A FIXED MONTHLY FEE TO THE STATE AUTHORITIES WOULD KEEP A CLOSE EYE ON THE ACTIVITIES TO ENSURE THAT INTERMEDIARIES AND PARASITES DIDN'T APPEAR SUCH MARXIST JARGON REFERS TO PEOPLE WHO BUY AND SELL GOODS OR PROFIT FROM THE LABOR OF OTHERS CUBAN ANALYSTS WERE DIVIDED ABOUT THE IMPORTANCE OF THE ANNOUNCEMENT WE ARE BACK TO WHERE CUBA WAS 25 YEARS AGO SAID EDWARD GONZALEZ AN ANALYST AT RAND CORP A US THINKTANK HE NOTED THAT FIDEL CASTRO'S 1968 REVOLUTIONARY OFFENSIVE NATIONALIZED THOUSANDS OF SMALL BUSINESSES SUCH AS BEAUTY SALONS IT'S A HALF STEP FORWARD SAID MR GONZALEZ PRIVATE WORK OF THE TYPE ANNOUNCED YESTERDAY SHOULD HAVE BEEN POSSIBLE SINCE THE ADOPTION OF A NEW CUBAN CONSTITUTION IN 1991 IT TOOK THEM TWO YEARS THEY JUST CAN'T BRING THEMSELVES TO LET GO AND COME FULLY TO THE MARKET MR GONZALEZ SAID THE MOVE COULD EASE CONDITIONS IN CUBA WHILE CREATING MORE SOCIAL TENSIONS THE PEOPLE WHO WILL BE GETTING AHEAD ARE PRECISELY THE ONES THAT AREN'T POLITICALLY CORRECT SAID MR GONZALEZ IT WILL FURTHER DEMORALIZE THE PARTY CADRES AND GOVERNMENT WORKERS LIVING ON FIXED INCOMES NOTING THAT THE LISTED ACTIVITIES ARE ALREADY WIDESPREAD IN CUBA'S ENORMOUS BLACK MARKET ARTURO VILLAR PUBLISHER OF LATIN AMERICAN BUSINESS REPORTS IN MIAMI WHO OFTEN TRAVELS TO CUBA SAID THE MOVE WAS THE GOVERNMENT'S ATTEMPT TO CONTROL THE UNDERGROUND ECONOMY IT SHOWS AN ECONOMY OUT OF CONTROL HE SAID ADDING THAT HAVANA IS PLAYING CATCHUP NOW THAT THEY HAVE LEGALIZED THIS PEOPLE WILL GO ONE STEP FURTHER GET MONEY FROM US RELATIVES AND SET UP COTTAGE INDUSTRIES THEN THE GOVERNMENT WILL HAVE TO ALLOW THE COTTAGE INDUSTRIES ARCHIBALD RITTER AN EXPERT ON THE CUBAN ECONOMY AT CARLETON UNIVERSITY IN OTTAWA CALLED THE CUBAN MOVE A VERY IMPORTANT STEP MR RITTER SAID HE EXPECTED A NOTICEABLE AND RATHER QUICK IMPACT ON THE FACE OF HAVANA NOW NOTABLE FOR ITS GRIMNESS AND THE ALMOST TOTAL ABSENCE OF BUSINESS ACTIVITY A FLOWERING OF ALL TYPES OF ENTREPRENEURSHIP WILL BRING A LOT OF THE BLACK MARKET TO THE SURFACE MR RITTER SAID THE NEW LAW COMES ON THE HEELS OF HAVANA'S JULY ANNOUNCEMENT DECRIMINALIZING THE POSSESSION OF DOLLARS BY CUBANS BOTH MEASURES ARE IN RESPONSE TO THE ISLAND'S DEEPENING ECONOMIC CRISIS CAUSED BY THE COLLAPSE OF CUBA'S TRADE RELATIONS WITH THE FORMER SOVIET BLOC 9309100101 930910 US WIDENS INQUIRY INTO POSSIBLE USE OF WATER TO BOOST WEIGHT PRICE OF GRAIN BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT IS WIDENING ITS INVESTIGATION INTO WHETHER GRAIN ELEVATORS ARE PADDING PROFITS BY ADDING WATER TO CROPS A SENATE AGRICULTURE SUBCOMMITTEE WAS TOLD YESTERDAY THAT 30 ELEVATORS THAT USE WATER HAVE BEEN INVESTIGATED SO FAR KAY STANG A COMPLIANCE OFFICER WITH THE AGRICULTURE DEPARTMENT'S FEDERAL GRAIN INSPECTION SERVICE SAID SOME ELEVATORS SPRAY CROPS WITH FIRE HOSES AND HIDDEN PIPES SEPARATELY IT WAS LEARNED THAT THE FEDERAL INQUIRY INTO THE WATERING PRACTICES OF CONAGRA INC'S GRAINHANDLING UNIT IS EXPANDING INTO NEW AREAS AGENTS OF THE USDA'S OFFICE OF INSPECTOR GENERAL IN RECENT MONTHS HAVE VISITED CONAGRA EXPORT TERMINALS IN THE PACIFIC NORTHWEST AND GULF OF MEXICO TO INVESTIGATE TANGENT ISSUES SAID AN AGRICULTURE DEPARTMENT OFFICIAL WHO ADDED THAT THE FEDERAL BUREAU OF INVESTIGATION WAS INVOLVED BRIEFLY CONAGRA DIDN'T TESTIFY BEFORE THE PANEL HEADED BY SEN THOMAS A DASCHLE D SD A SPOKESMAN FOR THE FOOD AND COMMODITY PROCESSOR BASED IN OMAHA NEB SAID THE COMPANY CONSULTED LEGAL COUNSEL AND DECIDED TO STICK TO THE POSITION THAT ITS ELEVATORS USE ONLY ENOUGH WATER TO CONTROL DUST AND THAT SUCH SYSTEMS PROTECT THE LIVES OF ITS EMPLOYEES THE WALL STREET JOURNAL IN A PAGE ONE ARTICLE JULY 1 DISCLOSED THE GOVERNMENT'S CONCERN ABOUT THE SPREADING PRACTICE OF WETTING GRAIN THE TECHNIQUE STARTED IN THE 1980S AS A WAY TO SUPPRESS THE DUST THAT TRIGGERS ELEVATOR EXPLOSIONS THE WATER ALSO MAKES GRAIN HEAVIER AND THUS MORE EXPENSIVE THE GOVERNMENT IS INVESTIGATING WHETHER THE USE OF WATER GOES BEYOND DUST CONTROL YESTERDAY'S TESTIMONY SIGNALS THAT THE GOVERNMENT'S INVESTIGATION INVOLVES MORE THAN ELEVATORS CONTROLLED BY CONAGRA FEDERAL GRAIN INSPECTION SERVICE OFFICIALS DIDN'T IDENTIFY THE 30 ELEVATORS BUT CONAGRA HAS SAID THAT ONLY ABOUT A DOZEN OF ITS 87 US GRAIN ELEVATORS ARE EQUIPPED WITH DUSTSUPPRESSING WATER SYSTEMS THE HEARING ALSO SHOWED WIDESPREAD SUPPORT WITHIN AGRICULTURE TO CURB GRAINWATERING SYSTEMS INDEED THE DEBATE IS MOSTLY BETWEEN LIMITING OR BANNING THE PRACTICE EVEN CONAGRA ADVOCATED SOME SORT OF PERMIT SYSTEM IN A WRITTEN STATEMENT SOME FARM GROUPS SUCH AS AMERICAN SOYBEAN ASSOCIATION WANT A BAN WE'RE WELL AWARE THAT WATER APPEARS TO HAVE BEEN ABUSED SAID DENNIS SHARPE CHIEF EXECUTIVE OFFICER OF THE GROUP SEN DASCHLE IS CONSIDERING LEGISLATION THAT WOULD LARGELY OUTLAW THE USE OF WATER BY GRAIN HANDLERS AGRICULTURE SECRETARY MIKE ESPY BEGAN PUSHING FOR A REGULATORY PROHIBITION THIS SUMMER AFTER THE DEPARTMENT'S ORIGINAL INVESTIGATION INTO THE USE OF WATER BY CONAGRA ELEVATORS IN INDIANA AMONG OTHER PLACES A SEALED REPORT ON THAT INQUIRY BY THE USDA'S OFFICE OF INSPECTOR GENERAL WHICH WAS HELPED BY THE GRAIN INSPECTION AGENCY WAS FORWARDED IN JULY TO THE JUSTICE DEPARTMENT 9309100100 930910 INDUSTRY FOCUS EUROPE GETS A LESSON FROM DETROIT SMALLER IS BETTER RECESSION FORCES CONTINENT'S BLOATED AUTO INDUSTRY TO MAKE HARD CHOICES BY DOUGLAS LAVIN AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL FRANKFURT AT EUROPE'S LARGEST AUTO SHOW WHICH OPENED HERE THIS WEEK UNDER THE CLOUD OF THE STEEPEST PLUNGE IN CAR SALES SINCE WORLD WAR II MERCEDESBENZ IS SHOWING A PROTOTYPE CAR THAT IS NO BIGGER THAN A FORD FESTIVA HELMUT WERNER MERCEDES'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DESCRIBES IT AS PART OF AN EFFORT BY THE COMPANY TO BECOME LESS VULNERABLE TO CYCLICAL SWINGS BUT HE AND HIS COMPETITORS ACKNOWLEDGED IN INTERVIEWS HERE THIS WEEK THAT SHRINKING A FEW CAR MODELS WON'T BE ENOUGH TO SURVIVE IN THE 1990S THE WHOLE INDUSTRY HAS TO SHRINK IT'S AS IF THE PAST DECADE IN THE US AUTO INDUSTRY WERE BEING REPLAYED IN EUROPE JUST AS DETROIT'S BIG THREE HAVE HAD TO GO ON CRASH DIETS SLASHING JOBS SQUEEZING SUPPLIERS AND BOOSTING PRODUCTIVITY SO MUST EUROPE'S AUTO MAKERS MORE THAN 100000 JOBS ARE TO BE CUT BY THE END OF NEXT YEAR AND THERE'S LITTLE SIGN THAT THOSE CUTS WILL END THE PAIN IN THE EUROPEAN AUTO INDUSTRY THE CURRENT SLUMP IS STRUCTURAL NOT CYCLICAL SAYS JACQUES CALVET CHAIRMAN OF PSA PEUGOT CITROEN HE PREDICTS THAT CAR SALES IN EUROPE THIS YEAR WILL DROP BY ALMOST 25 MILLION VEHICLES A DECLINE EQUIVALENT TO THE TOTAL PRODUCTION OF ONE OF EUROPE'S BIG SIX CAR MAKERS LAST YEAR CAR SALES IN EUROPE TOTALED ABOUT 134 MILLION UNITS MOREOVER MR CALVET PROJECTS THAT DESPITE THE SHRINKAGE JAPANESE MARKET SHARE IN EUROPE WILL GROW TO 123 FROM 11 THIS YEAR IN THE FACE OF RECENTLY TIGHTENED IMPORT RESTRICTIONS BOTH ARE SMALL CARS BUILT IN NORTH AMERICAN PLANTS THAT ARE BEING OPERATED ON JAPANESE LEANPRODUCTION MODELS THEY ARE REVERSING WHAT WAS ONCE A WELLESTABLISHED TREND THE EXPORT OF EUROPEAN SMALL CARS TO THE US WITH THE PLUNGING VALUE OF THE DOLLAR AND A DECADE'S HEAD START IN LEARNING LEANPRODUCTION TECHNIQUES US FACTORIES AND WORKERS CAN BUILD CARS AT LOWER COST THAN MOST EUROPEAN RIVALS AT THE HIGH END OF THE MARKET EUROPEAN AUTO MAKERS FACE ANOTHER COMPETITIVE THREAT WHILE DAIMLERBENZ AG'S MERCEDES AND BAYERISCHE MOTOREN WERKE AG PROMISE TO DEVELOP NEW COMPACT CARS BASED ON PROTOTYPES ON DISPLAY HERE JAPANESE COMPANIES ARE MAKING INROADS IN THE LUXURY SEGMENT MAZDA MOTOR CO USED THE MOTOR SHOW TO UNVEIL ITS NEW XEDOS 9 LUXURY CAR WHILE TOYOTA MOTOR CORP'S LEXUS LUXURY DIVISION SHOWED OFF THE NEW GS 300 SEDAN IT IS INTRODUCING IN EUROPE JUST AS THE US RECESSION EXPOSED THE COMPETITIVE SHORTCOMINGS OF DETROIT'S BIG THREE PARTICULARLY GENERAL MOTORS CORP THE EUROPEAN SLUMP IS FORCING AUTO MAKERS THERE TO FACE UP TO HARSH CHOICES THE MOST TROUBLED PLAYER IS EUROPE'S BIGGEST CAR MAKER VOLKSWAGEN AG REELING FROM A 16 BILLION MARK 990 MILLION FIRSTHALF LOSS VW IS A DUCK UNABLE TO FLY AFTER TOO MANY YEARS OF OVERFEEDING IN THE WORDS OF NO LESS AN AUTHORITY THAN FERDINAND PIECH VW'S CHAIRMAN UNTIL RECENTLY VW FACTORIES HAD TO RUN OVERTIME JUST TO BREAK EVEN MR PIECH SAYS HE AND PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA HAVE REDUCED THE BREAKEVEN POINT BUT THERE'S STILL A LONG WAY TO GO IT DOESN'T MAKE THE TASK ANY EASIER THAT MESSRS LOPEZ AND PIECH HAVE THE DISTRACTION OF A CRIMINAL INVESTIGATION INTO ACCUSATIONS THAT MR LOPEZ AND SEVERAL ASSOCIATES TOOK REAMS OF TOPSECRET COST INFORMATION TO VW FROM THEIR FORMER EMPLOYER GM NO CHARGES HAVE BEEN FILED BUT PROSECUTORS IN GERMANY LAST MONTH RAIDED VW HEADQUARTERS AND CARTED OUT BOXES OF DOCUMENTS AND MORE THAN TWO DOZEN COMPUTERS THE INDUSTRIAL ESPIONAGE CONTROVERSY HAS DRAMATIZED THE FIGHT FOR SURVIVAL IN AN INDUSTRY THAT HAD BEEN A BASTION OF GENTLEMANLY COMPETITION EVEN GM'S ADAM OPEL AG UNIT WHICH WAS ONE OF THE FEW EUROPEAN CAR MAKERS TO STAY IN THE BLACK IN THE FIRST HALF THIS YEAR NOW ACKNOWLEDGES THAT IT WILL HAVE DIFFICULTY TURNING A PROFIT IN THE SECOND HALF GM EUROPE CHAIRMAN LOUIS HUGHES SAYS THERE WILL HAVE TO BE FURTHER JOB CUTBACKS IN GM'S EUROPEAN OPERATIONS PROBABLY AT SOME OF ITS OLDER PLANTS THAT UNDERSCORES HOW EVEN ONE OF EUROPE'S MOST EFFICIENT CAR MAKERS MISJUDGED THE MARKET AFTER THE FALL OF THE IRON CURTAIN IN 1989 GM EUROPE RUSHED INTO EASTERN EUROPEAN EXPANSION IT SUCCEEDED IN SEIZING LEADERSHIP IN SOME MARKETS AND ITS NEW ASSEMBLY PLANT IN EISENACH IN THE FORMER EAST GERMANY IS A SHOWCASE WITH ONE OF EUROPE'S HIGHEST PRODUCTIVITY AND LOWEST WORKER ABSENTEEISM RATES BUT IT IS CAPACITY THAT GM COULD HAVE DONE WITHOUT JUST NOW ACKNOWLEDGES PAUL SCHMIDT GM EUROPE'S VICE PRESIDENT FINANCE IT CAME ON LINE AT JUST THE WRONG TIME HE SAYS SIMILARLY FORD IS STEPPING UP EFFORTS TO CUT COSTS AND MAKE ITS EUROPEAN OPERATIONS MORE COMPETITIVE THERE ISN'T AN AUTOMOTIVE MANUFACTURER IN EUROPE WHO IS NOT OVERSTAFFED SAYS JACQUES NASSER CHAIRMAN OF FORD OF EUROPE IT IS CLEAR THAT ACROSS EUROPE WE AND EVERY OTHER MANUFACTURER HAVE MORE PEOPLE THAN WE NEED TO SUPPLY DEMAND LATE LAST MONTH MERCEDES SAID IT NEEDED TO STEP UP ITS EFFORTS TO IMPROVE PRODUCTIVITY AND ANNOUNCED THE GOAL OF CUTTING AN ADDITIONAL 14000 JOBS UNVEILING ITS VISION A 93 SUBCOMPACT CONCEPT CAR WHICH WOULD BE IN THE SAME SIZE CLASS AS FIAT SPA'S NEW PUNTO MERCEDES PRESIDENT WERNER SAID THE LUXURY CAR MAKER WANTS TO CREATE A TREND OF OUR OWN EUROPE'S SALES DOWNTURN WAS ANTICIPATED SAYS BERND PISCHETSRIEDER CHAIRMAN OF BMW WHICH UNTIL 1993 ENJOYED 30 STRAIGHT YEARS OF RISING SALES BUT EUROPE'S AUTO MAKERS FOUND IT DIFFICULT TO PUSH THROUGH PAINFUL EFFICIENCY IMPROVEMENTS WHILE PROFITS WERE STILL ROLLING IN HE SAYS IF YOU WANT TO RETRENCH YOUR PEOPLE YOU NEED PUBLIC SUPPORT MR PISCHETSRIEDER SAYS AND MANAGEMENT PREDICTIONS OF DOOM SIMPLY AREN'T ENOUGH TO CONVINCE WORKERS THAT MORE PRODUCTIVITY IS NEEDED THAT IS WHY SOME INDUSTRY GURUS SAY THE SALES DOWNTURN IS GIVING EUROPE'S AUTO MAKERS A UNIQUE OPPORTUNITY THIS RECESSION IS BRILLIANT SAYS DANIEL T JONES A PROFESSOR OF MANAGEMENT AT CARDIFF UNIVERSITY IN WALES AND COAUTHOR OF A STUDY THAT SHOWED THAT EUROPEAN CAR MAKERS IN SOME CASES WERE ROUGHLY HALF AS EFFICIENT AS JAPANESE CAR MAKERS THE MOST IMPORTANT THING YOU WILL BE ABLE TO ASK A FEW YEARS FROM NOW IS HOW WELL DID YOU USE THE RECESSION' HE SAYS 9309100099 930910 MURDOCH PRESSED TO SHARE DETAILS OF HONG KONG DEAL A WALL STREET JOURNAL ROUNDUP HONG KONG RUPERT MURDOCH'S NEWS CORP IS COMING UNDER REGULATORY PRESSURE TO DISCLOSE FURTHER DETAILS ABOUT NEGOTIATIONS TO SELL ITS 50 STAKE IN THE SOUTH CHINA MORNING POST HONG KONG'S PRINCIPAL ENGLISHLANGUAGE NEWSPAPER THE NEGOTIATIONS WERE FIRST DISCLOSED LAST FRIDAY IN A STATEMENT FROM SOUTH CHINA MORNING POST HOLDINGS LTD THE NEWSPAPER'S PUBLISHER AND A HONG KONGLISTED SUBSIDIARY OF NEWS CORP THE TERSE STATEMENT DIDN'T IDENTIFY THE PROSPECTIVE BUYER OR BUYERS ALTHOUGH PEOPLE CLOSE TO THE TALKS SAY ROBERT KUOK A WEALTHY MALAYSIAN CHINESE IS KNOWN TO BE ONE OF THE INTERESTED PARTIES THE SCMP'S FATE IS A SENSITIVE TOPIC FOR HONG KONG WHICH IS DUE TO COME UNDER CHINESE RULE IN 1997 MANY PEOPLE SPECULATE THAT CHINA DESIRES SOME DEGREE OF INFLUENCE OVER THE NEWSPAPER WHOSE COVERAGE IS WIDELY REGARDED AS PROBRIH ON THURSDAY THE COLONY'S SECURITIES AND FUTURES COMMISSION PUBLICLY VOICED CONCERN OVER THE LENGTHY SUSPENSION IN TRADING OF SCMP STOCK WHICH HAS BEEN IN EFFECT SINCE LAST FRIDAY IN A STATEMENT THE REGULATORY COMMISSION ALSO SAID WE HAVE STRONGLY URGED THE PARTIES TO MAKE AN ANNOUNCEMENT DISCLOSING THE STATE OF THE NEGOTIATIONS AND THE PARTIES INVOLVED SO THAT TRADING CAN RESUME AS EARLY AS POSSIBLE THE FACT THAT NOTHING HAS BEEN DISCLOSED IN A WEEK HAS SPAWNED SPECULATION THAT EITHER THE NEGOTIATIONS HAVE HIT A HITCH OR THAT NEW BIDDERS HAVE EMERGED ON THE BASIS OF THE SCMP'S LASTTRADED PRICE THE 50 STAKE HELD BY NEWS CORP BEARS A MARKET VALUE OF ABOUT HK4 BILLION US517 MILLION THE RUMORED BIDDERS INCLUDE CHINACONTROLLED COMPANIES AND NEWSPAPER PUBLISHING CONCERNS SUCH AS SINGAPORE PRESS HOLDINGS LTD WHICH HOLDS A 5 SCMP STAKE OFFICIALS AT SINGAPORE PRESS HOLDINGS COULDN'T BE REACHED FOR COMMENT SO FAR THOUGH THE ONLY KNOWN BIDDER IS MR KUOK A COMMODITIES TRADER WITH DIVERSE PROPERTY HOLDINGS AND BEST KNOWN IN ASIA FOR THE SHANGRILA HOTEL CHAIN HE CONTROLS HE IS ALSO KNOWN TO BE CLOSE TO MANY POLITICAL LEADERS IN THE REGION INCLUDING CHINA'S IN MALAYSIA A LONGTIME ASSOCIATE FAMILIAR WITH MR KUOK'S INVESTMENTS SAID THURSDAY THAT THE BUSINESSMAN IS A PARTY TO THE SCMP TALKS HE BECAME INVOLVED BECAUSE HE SEES VAST BUSINESS POTENTIAL IN THE NEWSPAPER AND NOT BECAUSE HE WANTS TO DO THE CHINESE GOVERNMENT ANY POLITICAL FAVORS THE ASSOCIATE SAID 9309100098 930910 HEARD ON THE STREET BOOK VALUE IS MORE RARELY REQUIRED READING NOW BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MONEY MANAGERS ARE CLOSING THE BOOK ON BOOK VALUE BARGAINHUNTING INVESTORS USED TO PAY A LOT OF ATTENTION TO BOOK VALUE NAMELY A COMPANY'S ASSETS MINUS ITS LIABILITIES BUT NOW EVEN DIEHARD FANS CONCEDE THAT THIS MEASURE OF A COMPANY'S WORTH HAS LOST MUCH OF ITS MEANING BECAUSE OF NEW ACCOUNTING RULES SHARE BUYBACKS AND WRITEOFFS I WAS A BIG PROPONENT OF BOOK VALUE SAYS RICHARD FONTAINE A TOWSON MD STOCKPICKER WITH 270 MILLION UNDER MANAGEMENT BUT IT'S VERY DIFFICULT TO USE IT AS A YARDSTICK ANYMORE THE DISTORTIONS HAVE GOTTEN SO BIG THAT IT'S GOT RID OF MOST OF THE VALUE FOR VALUE INVESTORS WHO FAVOR BEATENDOWN STOCKS THAT ARE CHEAP COMPARED WITH CORPORATE ASSETS BOOK VALUE USED TO PROVIDE AN EASY WAY TO FIND BARGAINS ALL YOU HAD TO DO WAS COMPARE A COMPANY'S STOCK PRICE WITH ITS BOOK VALUE ON A PERSHARE BASIS WHICH CAN BE CALCULATED USING THE BALANCE SHEET IN A COMPANY'S ANNUAL REPORT VALUE INVESTORS WOULD OFTEN BE DRAWN TO COMPANIES WHOSE SHARES WERE TRADING NEAR OR BELOW BOOK VALUE THESE DAYS HOWEVER FEW STOCKS ARE AT SUCH DEPRESSED LEVELS ACCORDING TO THE LEUTHOLD GROUP A MINNEAPOLIS RESEARCH FIRM THE COMPANIES IN THE STANDARD & POOR'S 400STOCK INDEX ARE TRADING AT AN ASTOUNDING 31 TIMES BOOK VALUE HIGHER EVEN THAN AT THE 1987 STOCK MARKET PEAK PART OF THE REASON IS LOFTY STOCK PRICES BUT ALSO IMPORTANT HAS BEEN THE SHRINKING BOOK VALUE OF MANY COMPANIES BOOKVALUE MEASUREMENTS HAVE GONE THROUGH SO MANY CHANGES AS TO BE ALMOST MEANINGLESS SAYS WAYNE NORDBERG PARTNER IN CHARGE OF EQUITY INVESTMENTS AT NEW YORK'S LORD ABBETT & CO WE LOOK AT IT BUT IT DOESN'T OCCUPY THE SAME POSITION IN OUR ANALYTICAL PROCESS AS IT DID FIVE OR 10 YEARS AGO WHY WAS BOOK VALUE CONSIDERED SO IMPORTANT IT REFLECTS THE AMOUNT OF MONEY INVESTED IN A COMPANY THROUGH ISSUING STOCK AND RETAINED EARNINGS IF A COMPANY'S SHARES ARE BELOW BOOK VALUE THEY ARE IN EFFECT TRADING FOR LESS THAN THE CAPITAL INVESTED IN THE FIRM FOR INVESTORS ANXIOUS TO FIND CHEAP STOCKS THAT MAY BE AN APPETIZING PROSPECT UNFORTUNATELY BOOK VALUE IS MORE THAN SIMPLY THE SUM OF EQUITY CAPITAL RAISED AND EARNINGS RETAINED MR NORDBERG SAYS MANY COMPANIES HAVE SEEN THEIR BOOK VALUES SHRINK SHARPLY BECAUSE OF SHARE REPURCHASES WRITEOFFS CAUSED BY CORPORATE RESTRUCTURINGS AND THE ADOPTION OF A NEW ACCOUNTING RULE THAT REQUIRES THE SETUP OF A RESERVE TO COVER RETIREE HEALTH BENEFITS MANY MONEY MANAGERS BELIEVE THESE ITEMS SOMETIMES ARTIFICIALLY DEPRESS A COMPANY'S BOOK VALUE LAST YEAR FOR INSTANCE GENERAL MOTORS' BOOK VALUE SHRANK TO 847 A SHARE FROM 4289 IN LARGE PART BECAUSE OF NEW ACCOUNTING RULES REGARDING RETIREE BENEFITS AT DAYTON HUDSON BOOK VALUE FELL BETWEEN YEAREND 1986 AND YEAREND 1989 AS THE RETAILER BOUGHT LARGE CHUNKS OF ITS OWN STOCK IN RECENT YEARS INTERNATIONAL BUSINESS MACHINES' BOOK VALUE HAS SHRIVELED AS THE COMPUTER GIANT TOOK WRITEOFFS TO COVER ITS RESTRUCTURING AS INDIVIDUAL COMPANIES HAVE TAKEN HITS TO THEIR BOOK VALUE THE STOCK MARKET HAS STARTED TO APPEAR INCREASINGLY EXPENSIVE BASED ON PRICETOBOOK MULTIPLES THE TREND PROMPTED GOLDMAN SACHS'S MARKET STRATEGIST ABBY COHEN TO ISSUE A REPORT SAYING INVESTORS SHOULD NOT CONCLUDE THAT MARKET VALUATION HAS WORSENED IN HER REPORT MS COHEN NOTES THAT WHILE THE MARKET MIGHT SEEM EXPENSIVE BASED ON A PRICETOBOOK VALUE YARDSTICK STOCKS ARE IN THE MIDDLE OF THEIR HISTORICAL TRADING RANGE BASED ON PRICETOREPLACEMENT BOOK VALUE REPLACEMENT BOOK VALUE ADJUSTS FOR THE EFFECT OF FACTORS SUCH AS INFLATION WE'D SAY THAT STOCKS ARE TRADING AT THEIR 33YEAR AVERAGE BASED ON REPLACEMENT BOOK VALUE SAYS MS COHEN AS RESULT SHE SAYS I WOULDN'T CONCLUDE THAT STOCKS ARE PARTICULARLY EXPENSIVE OR PARTICULARLY CHEAP NOT EVERYBODY IS WILLING TO GIVE UP ON BOOK VALUE SOME FIGURE IT'S A HANDY TOOL FOR GAUGING HOW CONSERVATIVELY CAPITALIZED A COMPANY IS AND FOR JUDGING WHETHER THE STOCK IS UNDERVALUED NICK WHITRIDGE MANAGER OF THE 40 MILLION BABSON VALUE FUND FAVORS STOCKS AT LOW MULTIPLES OF BOOK VALUE SUCH AS INSURER AETNA LIFE & CASUALTY SHIPPER OVERSEAS SHIPHOLDING BROKER SALOMON INC AND WALLACE COMPUTER SERVICES WHICH SELLS COMPUTER SUPPLIES PRICETOBOOK VALUE IS A BENCHMARK OF VALUE THAT'S FAR MORE STABLE THAN PRICETOEARNINGS ARGUES MR WHITRIDGE AND WHERE THERE ARE DISTORTIONS YOU KNOW THEY'RE THERE SO YOU CAN ALLOW FOR THEM I STILL THINK IT'S AN EFFECTIVE MEASURE MR FONTAINE THE MARYLAND MONEY MANAGER SAYS HE CONTINUES TO USE BOOK VALUE TO IDENTIFY CHEAP STOCKS BUT WE HAVE TO DIG DEEPER TO SEE IF IT'S BEEN DISTORTED RIGHT NOW HE'S INTRIGUED BY STOCKS SUCH AS CHARMING SHOPPES AND MERRYGOROUND ENTERPRISES THE PRICETOBOOK VALUE OF BOTH SPECIALTY RETAILERS IS LOW COMPARED WITH WHERE THE SHARES HAVE TRADED HISTORICALLY NOTES MR FONTAINE LORD ABBETT'S MR NORDBERG DESPITE HIS GENERAL MISGIVINGS ABOUT BOOK VALUE SAYS THE YARDSTICK CAN STILL BE USEFUL IN VALUING UTILITIES AND FINANCIAL COMPANIES HE SAYS INSURANCE STOCKS AND BANKS ARE CHEAP IN RELATION TO HISTORIC BOOK VALUE BASED ON THEIR LOW PRICETOBOOK VALUE LORD ABBETT OWNS BANKS SUCH AS CHEMICAL BANKING FIRST CHICAGO AND CLEVELAND'S NATIONAL CITY THE NEW YORK MONEY MANAGER ALSO HAS BOUGHT INSURERS SUCH AS AFLAC OF COLUMBUS GA HOUSTON'S AMERICAN GENERAL AND LINCOLN NATIONAL OF WAYNE IND IF THE PRICETOBOOK VALUE CRITERION HAS BECOME MISLEADING WHAT ARE ANALYSTS USING INSTEAD BOTH MR NORDBERG AND MR FONTAINE SAY THEY HAVE STARTED TO PAY MORE ATTENTION TO STOCKS THAT ARE CHEAP BASED ON THE RELATIONSHIP OF THE COMPANY'S STOCK PRICE TO ITS ANNUAL SALES BOOKVALUE ANALYSIS IS STILL USEFUL WITH UTILITIES AND FINANCIAL COMPANIES SAYS MR NORDBERG BUT IN MANUFACTURING COMPANIES CONSUMER COMPANIES AND SERVICE COMPANIES THE PRICETOSALES MAY BE A MUCH BETTER GAUGE OF VALUE 9309100097 930910 UNITED'S TRAFFIC GREW IN AUGUST THOUGH LOAD FACTOR DECLINED CHICAGO UAL CORP SAID AUGUST TRAFFIC AT ITS UNITED AIRLINES UNIT ROSE 2 TO 1034 BILLION REVENUE PASSENGER MILES FROM 1014 BILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE HOWEVER BECAUSE THE CARRIER'S CAPACITY AS MEASURED IN AVAILABLE SEAT MILES INCREASED 12 UNITED'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED SHOWED A SHARP DECLINE TO 73 FROM 80 FOR THE YEAREARLIER PERIOD THE DECLINE IN LOAD FACTOR REFLECTS THE FACT THAT LAST YEAR'S DOMESTIC TRAFFIC WAS INFLATED BY A FARE WAR THAT FILLED SEATS BUT YIELDED LITTLE PROFIT UAL SAID IN OUR INTERNATIONAL MARKETS THE COMPANY SAID OUR LOAD FACTORS IMPROVED IN BOTH THE PACIFIC AND LATIN AMERICAN REGIONS WHILE WE CONTINUE TO BE DISAPPOINTED IN THE ATLANTIC DIVISION WHILE LOAD FACTOR FOR THE COMPANY'S PACIFIC ROUTES ROSE 19 PERCENTAGE POINTS TO 793 UAL SAID THE LOAD FACTOR ON ATLANTIC FLIGHTS SLIPPED 02 PERCENTAGE POINT TO 813 AS THE INCREASE IN PASSENGER TRAFFIC FAILED TO MATCH THE CARRIER'S 18 INCREASE IN TRANSATLANTIC CAPACITY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE UAL CLOSED AT 142625 UP 1625 9309100096 930910 EDUCATION COED SCHOOLS ARE STUDYING ALLGIRL CLASSES BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN A SELECT GROUP OF NINTH GRADERS ENTERED COED MARIN ACADEMY IN SAN RAFAEL CALIF LAST WEEK THEY BEGAN A YEARLONG EXPERIMENT IN THEIR BIOLOGY CLASS THERE WEREN'T ANY BOYS FOLLOWING THROUGH ON A PILOT PROJECT IN WHICH 14 STUDENTS ENROLLED IN AN ALLGIRL ALGEBRA I CLASS LAST YEAR THE PRIVATE HIGH SCHOOL ADDED A SCIENCE CLASS AND A GEOMETRY CLASS TO ITS GIRLSONLY CURRICULUM STUDENTS IN THE PROGRAM SAY THE SEPARATION GAVE THEIR MATH GRADES A BOOST IT WAS A REAL DRASTIC CHANGE FOR ME FROM MY LAST MATH CLASS SAYS 15YEAROLD WAYAN KAUFMAN NEAR THE END OF THE YEAR I DIDN'T NEED TO GO TO MY MATH TEACHER FOR HELP DURING STUDY HALL MY GRADES IMPROVED BY THE END OF THE YEAR THE SCHOOL WHICH HAS ABOUT 300 STUDENTS ENROLLED THIS YEAR EXPANDED ITS PROGRAM THIS FALL BECAUSE OF PRELIMINARY EVIDENCE OF RISING GRADES AMONG THE GIRLS PARTICIPATING IN THE PILOT CLASS AND BECAUSE OF SUPPORT FROM RETURNING STUDENTS AND THEIR PARENTS WHILE SINGLESEX EDUCATION ISN'T NEW MARIN ACADEMY'S EFFORT TO PROVIDE ALLGIRL SETTINGS IN A COED SCHOOL IS A RESPONSE TO RECENT STUDIES THAT FOUND THAT GIRLS ARE OFTEN SHORTCHANGED IN TRADITIONAL CLASSROOMS PARTICULARLY IN MATH AND SCIENCE IN FACT THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS BASED IN WASHINGTON DC REPORTS THAT A HANDFUL OF ITS 900 PRIVATESCHOOL MEMBERS ALREADY OFFER SINGLESEX SETTINGS AT VARIOUS GRADE LEVELS THE MARIN SCHOOL TRIED THE IDEA AFTER SEEING GROWING EVIDENCE THAT GIRLS DO BETTER WITHOUT BOYS A STUDY DONE BY WELLESLEY COLLEGE A WOMEN'S COLLEGE IN WELLESLEY MASS FOR EXAMPLE FINDS GIRLS DO BETTER IN ALLGIRL SETTINGS A STUDY BY THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN ALSO RECENTLY REPORTED ON GENDERBIAS IN THE CLASSROOM THERE'S CERTAINLY A NATIONAL TREND TO DEBATE AND DISCUSS THE ADVANTAGES OF A GIRLSONLY SETTING SAYS WHITNEY RANSOME EXECUTIVE DIRECTOR FOR THE NATIONAL COALITION OF GIRLS' SCHOOLS OF CONCORD MASS WHICH REPRESENTS 40000 GIRLS IN 67 PUBLIC AND PRIVATE SCHOOLS ACCORDING TO ARLYCE SEIBERT HEAD OF PRIVATE CRANBROOK KINGSWOOD UPPER SCHOOL WHICH HAS MORE THAN 680 STUDENTS IN BLOOMFIELD HILLS MICH A SURVEY OF ITS GRADUATES FINDS THAT A SINGLESEX SETTING ENCOURAGED GIRLS AS WELL AS BOYS TO SPEAK IN THEIR OWN VOICES SHE NOTES THAT FOR BOYS THOUGH THE SINGLESEX SETTINGS DON'T MAKE TOO MUCH OF A DIFFERENCE BUT FOR GIRLS IT DOES THERE'S NOT BEEN A LONGTERM STUDY OF STUDENTS INVOLVED IN SINGLESEX CLASSES TO SAY DEFINITIVELY THAT THEIR GRADES HAVE GONE UP HOWEVER RESEARCH SHOWS THE MATH CLASS IS DEFINITELY SUCCESSFUL IN SHORTTERM THINKING SAYS MARLENE MOORE ASSISTANT HEAD FOR ADVANCEMENT AT MARIN ACADEMY THEIR FINDINGS BOLSTER WHAT HEADS OF GIRLS' SCHOOLS HAVE LONG CONTENDED THAT SUCH SETTINGS PROVIDE THE FOCUS ATTENTION AND A CHANCE TO STUDY AND COMPETE AGGRESSIVELY AWAY FROM DISTRACTING SOCIAL PRESSURES THE REASON THAT GIRLS' SCHOOLS EXIST IS BECAUSE COED SCHOOLS DON'T PAY THE SAME ATTENTION TO GIRLS AS BOYS SAYS ARLENE HOGAN PRINCIPAL OF HAMLIN SCHOOL A SAN FRANCISCO SCHOOL FOR GIRLS IN KINDERGARTEN THROUGH EIGHTH GRADE IN A COED COMPUTER LEARNING CLASS WHICH IS DOMINATED BY BOYS GIRLS FEEL LIKE FOREIGNERS LIKE PEOPLE WHO DON'T BELONG SAYS MS HOGAN BUT IN A GIRLS' SCHOOL SHE ADDS THAT'S ELIMINATED GIRLS ARE EXPECTED TO SUCCEED IN MATH AND SCIENCE IT'S A CHANCE FOR EVERY GIRL TO TRY ON ALL ROLES BEFORE THEY GO INTO THE REAL WORLD WHERE THE DECK ISN'T STACKED EVENLY SUCH IDEAS REMAIN CONTROVERSIAL HOWEVER STATE CIVIL RIGHTS LAWS WITH FEW EXCEPTIONS DON'T ALLOW PUBLIC SCHOOLS TO SEGREGATE STUDENTS ON THE BASIS OF GENDER AND SAYS WILLIAM L RUKEYSER A SPOKESMAN FOR THE CALIFORNIA DEPARTMENT OF EDUCATION MOST WOMEN ARE GOING TO END UP IN A COED ENVIRONMENT FOR THE BALANCE OF THEIR LIVES AND IT'S A REALITY THAT THEY HAVE TO GET TRAINED FOR EARLY ON IN ORDER TO SUCCEED BEYOND HIGH SCHOOL TEACHERS FIND THEY MUST BE DIPLOMATIC ABOUT DESIGNATING SELECT GROUPS OF STUDENTS ANITA MATTISON A MATH TEACHER AT MARIN ACADEMY WHO TAUGHT LAST YEAR'S RANDOMLY CHOSEN ALLGIRL CLASS SAYS AT FIRST SOME OF THE GIRLS THOUGHT THEY WERE SINGLED OUT IN A NONPOSITIVE WAY BUT ANYTIME YOU MAKE ONE GROUP SPECIAL IN ONE WAY OR ANOTHER THE PEOPLE NOT INVOLVED MIGHT THINK THEY WERE LESS IMPORTANT THAN OTHERS IN THIS CASE THE BOYS MIGHT FEEL LEFT OUT DANIELLE BUSH 15 WHO SAW HER OWN PERFORMANCE IMPROVE IN THE ALLGIRL MATH CLASS SAYS GIRLS WHO WEREN'T INCLUDED IN IT WERE SORT OF JEALOUS OTHER UNEXPECTED CHALLENGES AROSE WE WERE SO COMFORTABLE WITH JUST BEING GIRLS THAT OUR TEACHER SOMETIMES LOST CONTROL OF US WE WERE SO ENTHUSIASTIC THAT WE WEREN'T INTIMIDATED SAYS STUDENT MISS KAUFMAN OTHER GIRLS QUIT THE PROGRAM TO RETURN TO A CLASSROOM WITH MALE CLASSMATES SAYS ELIZABETH KNUDSEN A 14YEAROLD 10TH GRADER WHO GOT A'S IN HER EIGHTHGRADE MATH CLASS AND EARNED STRAIGHT A'S IN THE NINTH GRADE I JUST DIDN'T SEE THAT IT WAS MUCH DIFFERENT THAN ANY OF MY OTHER CLASSES A FEW PUBLIC SCHOOLS ARE INDEED ALL GIRLS ONE EXAMPLE IS PHILADELPHIA HIGH SCHOOL FOR GIRLS WHICH WAS A GIRLS' SCHOOL BEFORE LAWS WERE ENACTED AND HASN'T HAD ANY BOYS APPLY SINCE ANOTHER WESTERN HIGH SCHOOL IN BALTIMORE WITH 1340 STUDENTS HAS BEEN AN ALLGIRL SCHOOL SINCE 1844 RATHER THAN BEING LESS COMPETITIVE GIRLS HAVE BECOME MORE COMPETITIVE SAYS SANDRA WIGHTON PRINCIPAL OF WESTERN THEY HAVE POISE AND CONFIDENCE TO DO ANYTHING THEY WANT TO DO ALEXANDRA DUGGER 15 A STUDENT AT WESTERN HIGH SCHOOL FINDS IT EASIER TO CONCENTRATE I CAN FOCUS ON MY WORK RATHER THAN THE OPPOSITE SEX I'M NOT COMPETING WITH OTHER GIRLS TO GET A BOY'S ATTENTION YOU DON'T HAVE TO WORRY ABOUT HOW YOU DRESS IT'S ALL HOW YOU WORK AND STUDY AT WESTERN SEVENTEENYEAROLD NOVICE JOHNSON WHO GRADUATED AS THE VALEDICTORIAN AT WESTERN HIGH SAYS THE EXPERIENCE HELPED ME TO LEARN TO TAKE A LEADERSHIP ROLE AND RESPONSIBILITY WITH THAT FOUNDATION SHE SAYS SHE'S READY TO TAKE ON THE REAL WORLD IN A COED COLLEGE I'M READY TO EXPERIENCE A COED SCHOOL AGAIN SHE SAYS I WON'T HAVE THAT SHOCK OF LEAVING COLLEGE AND THEN DEAL WITH MEN AGAIN 9309100095 930910 TRAVEL CONTINENTAL PLANS TEST OF LOWFARE NOFRILLS FLIGHTS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AT CONTINENTAL AIRLINES IMITATION MAY BE MORE THAN JUST THE SINCEREST FORM OF FLATTERY IT COULD BE A SHORTCUT TO PROFITS CONTINENTAL WILL BEGIN A SIXMONTH TEST OF A LOWFARE NOFRILLS SERVICE PATTERNED AFTER THE INDUSTRY'S PERENNIAL MONEYMAKER SOUTHWEST AIRLINES CONTINENTAL'S EXPERIMENT WILL INCLUDE SEVERAL CITIES ON THE EAST COAST STARTING OCT 1 THE AIRLINE WON'T SAY WHICH CITIES ARE INVOLVED UNTIL THE OFFICIAL ANNOUNCEMENT MONDAY BUT IT IS KNOWN THAT THEY NUMBER ABOUT NINE AND INCLUDE GREENSBORO NC JACKSONVILLE FORT LAUDERDALE AND TAMPA FLA AND NEWARK NJ THE CITIES ALL WILL CONNECT WITH EACH OTHER WITH NONSTOP AND ONESTOP FLIGHTS TO CREATE A MINIROUTE SYSTEM INDEPENDENT OF CONTINENTAL'S HUBANDSPOKE SYSTEM LIKE SOUTHWEST THE AIM IS TO PROVIDE FREQUENT SERVICE TO THESE DESTINATIONS IN PART BY ENSURING THAT THE AIRCRAFT SPEND AS LITTLE TIME ON THE GROUND AS POSSIBLE A SPOKESMAN FOR CONTINENTAL WOULDN'T COMMENT ON ANY ASPECT OF THE PROGRAM WHILE THE INTERNAL WORKING NAME FOR THE NEW SERVICE HAS BEEN CALLITE IT WON'T BE DISTINGUISHED FROM REGULAR CONTINENTAL FLIGHTS WITH A DIFFERENT NAME OR BRAND IDENTITY PEOPLE FAMILIAR WITH THE PROGRAM SAY THEY ADD THAT CONTINENTAL PLANS TO RESURRECT AN OLD MARKETING GIMMICK PEANUTS FARES THE ROCKBOTTOM TICKET PRICES THAT FIRST BROUGHT CONTINENTAL'S CORPORATE ANCESTOR TEXAS INTERNATIONAL TO NATIONAL ATTENTION IN THE MID1970S FOR PASSENGERS FLYING CONTINENTAL'S LITE PRODUCT WILL BE NO DIFFERENT FROM BEING ON BOARD CURRENT SHORT CONTINENTAL FLIGHTS AS ON SOUTHWEST PASSENGERS ON THOSE QUICK HOPS WILL BE SERVED DRINKS AND PEANUTS RATHER THAN MEALS CONTINENTAL'S PLANES WON'T LOOK ANY DIFFERENT AND OTHER SERVICES BAG CHECKING ASSIGNED SEATS UPGRADES AND THE LIKE WILL BE THE SAME TICKET PRICES WILL BE LOWER BUT IT WASN'T IMMEDIATELY CLEAR HOW MUCH LOWER IT IS UNCLEAR HOW CONTINENTAL'S CLOSEST COMPETITOR ON THOSE ROUTES USAIR GROUP INC WILL RESPOND TO THIS INCURSION INTO WHAT HAS TRADITIONALLY BEEN ITS TERRITORY THIS IS A DOUBLE WHAMMY FOR USAIR WHICH IS CURRENTLY FENDING OFF SOUTHWEST'S AGGRESSIVE MOVE INTO BALTIMORE CONTINENTAL ISN'T THE ONLY CARRIER SEEKING TO EMULATE SOUTHWEST THE ONLY CONSISTENTLY PROFITABLE CARRIER AMONG MAJOR AIRLINES LAST WEEK DELTA AIR LINES FLOATED THE IDEA OF A LOWCOST OPTION WITHIN ITS VAST ROUTE NETWORK AND UAL CORP'S UNITED AIRLINES HAS DISCUSSED THE POSSIBILITY OF SETTING UP SUCH A COMPANYWITHINACOMPANY FOR SEVERAL MONTHS IN JUNE ALASKA AIRLINES STARTED FLYING BETWEEN PORTLAND AND SEATTLE TO LEISURE DESTINATIONS RENO AND LAS VEGAS NEV ADVANCEPURCHASE TICKETS COST 140 ROUND TRIP NEW CARRIERS CITE DALLASBASED SOUTHWEST AS THEIR ROLE MODEL TOO FOR EXAMPLE THAT IS HOW KIWI AIRLINES BASED IN NEWARK NJ BILLED ITSELF WHEN IT STARTED SERVICE LAST YEAR BUT INDUSTRY OBSERVERS AND ANALYSTS CAUTION THAT WHAT WORKS FOR SOUTHWEST AND NEW CARRIERS MAY NOT WORK FOR OLDER MORE ESTABLISHED AIRLINES YOU HEAR A LOT OF CRITICISM OF AIRLINES FOR NOT REMAKING THEMSELVES LIKE SOUTHWEST AND THE FACT IS THEY CAN'T SAYS MELVIN A BRENER A TRANSPORTATION CONSULTANT BASED IN CONNECTICUT THEY'D HAVE TO HAVE A FOOT IN BOTH CAMPS THEY'D HAVE TO COMPETE ON ONE END OF THE SCALE WITH SOUTHWEST AND ON THE OTHER WITH BRITISH AIR THAT'S A VERY TOUGH CHALLENGE EVEN SOUTHWEST IS SKEPTICAL MY FEELING HAS ALWAYS BEEN THAT PEOPLE ACCEPT OUR SERVICE BECAUSE WE DON'T PURPORT TO BE SOMETHING WE'RE NOT SAYS COLLEEN BARRETT SOUTHWEST'S EXECUTIVE VICE PRESIDENT FOR CUSTOMERS MS BARRETT BELIEVES THAT A NEW ENTRANT WOULD MORE EASILY ESTABLISH ITSELF IN THE SOUTHWEST MOLD THAN AN EXISTING CARRIER COULD SCALE DOWN I DON'T THINK YOU CAN REASONABLY ON THE SAME CARRIER GIVE PEOPLE ONE KIND OF SERVICE AND THEN OFFER A DIFFERENT KIND OF SERVICE SHE SAYS I THINK IT'S JUST TOO CONFUSING THAT IS ONE REASON AMERICAN AIRLINES ABANDONED THE IDEA OF STARTING ITS OWN SOUTHWEST IMITATION THE AMR CORP UNIT STUDIED THE PROSPECT IN 1991 AND 1992 BUT SHELVED THE IDEA AFTER DECIDING SOUTHWEST'S SUCCESS IS BASED ONLY PARTLY ON ITS SERVICE FORMULA IT'S ALSO DRIVEN BY THE FACT THEY PAY PEOPLE LESS AND WORK THEM HARDER SAYS GERARD ARPEY AMERICAN'S SENIOR VICE PRESIDENT FOR PLANNING IF WE HAD THEIR WORK RULES AND THEIR LABOR RATES OUR FORMULA WOULD BE WORKING AMERICAN DECIDED TO STICK TO ITS HUBANDSPOKE SYSTEM BUT IS DOWNSIZING ITS UNPROFITABLE OPERATIONS SOUTHWEST IS HEAVILY UNIONIZED BUT ITS LABOR CONTRACTS WOULD BE HARD FOR OTHER AIRLINES TO MATCH PILOTS CAN HELP FLIGHT ATTENDANTS CLEAN AIRPLANE CABINS BETWEEN FLIGHTS AND GROUNDCREW WORKERS TAKE TURNS SLINGING LUGGAGE AND GUIDING THE AIRCRAFT UP TO GATES ALL EMPLOYEES ARE ENCOURAGED TO WORK IN THE FIELD DOING ANOTHER EMPLOYEE'S JOB FLIGHT CREWS ARE PAID BY THE TRIP NOT THE HOUR SUCH ADVANTAGES KEEP SOUTHWEST'S LABOR COSTS UP TO 40 LOWER THAN LARGER RIVALS OF ALL THE MAJOR AIRLINES HOWEVER CONTINENTAL COULD PULL OFF A LOWCOST ALTERNATIVE BECAUSE IT TOO HAS AMONG THE LOWEST LABOR RATES AMONG MAJOR AIRLINES EXCEPTING SOUTHWEST AND AMERICA WEST AIRLINES UNTIL LAST YEAR CONTINENTAL WAS MAINLY UNIONFREE EXCEPT FOR A FEW DOZEN FLIGHT DISPATCHERS THAT IS A VESTIGE OF ITS FIRST BANKRUPTCY IN 1983 WHEN THE AIRLINE ABROGATED LABOR CONTRACTS AND IMPOSED LOWER WAGES AND NEW WORK RULES IN ITS SECOND BANKRUPTCY CONTINENTAL GOT MORE WAGE CUTS FROM EMPLOYEES BUT HALF OF THOSE CUTS WERE RESTORED AND WHILE CONTINENTAL'S PILOTS RECENTLY VOTED FOR A UNION IT IS IN ITS INFANCY CONTINENTAL HAS HAD EXPERIENCE WITH THIS KIND OF SERVICE BEFORE AS ITS REINSTATEMENT OF PEANUTS FARES ATTESTS THE SERVICE IT IS OFFERING RECALLS THE ULTRALOW FARES AND SERVICE OF PEOPLE EXPRESS AIRLINES WHICH TEXAS AIR CORP BOUGHT IN 1986 AND MERGED INTO CONTINENTAL A YEAR LATER MANY OF THE JETS IN CONTINENTAL'S FLEETS ARE STILL PEOPLE EXPRESS PLANES AND CONTINENTAL IS PICKING A FERTILE PROVING GROUND ONE OF THE REASONS FRANK LORENZO FORMER CHAIRMAN OF CONTINENTAL WANTED TO START HIS OWN NEW AIRLINE ON THE EAST COAST WAS BECAUSE THE AREA IS POPULATION RICH AND STARVED FOR LOW FARES SHORTHAUL MARKETS IN THE EAST HAVE SEEN FARES JUMP 106 WHILE TRAFFIC HAS DROPPED 12 OVER THE PAST 10 YEARS HOWEVER WESTERN MARKETS WHERE SOUTHWEST HAS BEEN VERY AGGRESSIVE HAVE SEEN TRAFFIC SKYROCKET 75 WHILE FARES HAVE INCHED UP ONLY 5 IN ADDITION CONTINENTAL MAY BE WISE IN TRYING TO ESTABLISH A SOUTHWESTSTYLE SERVICE IN THE SOUTHEAST RIGHT NOW EVENTUALLY SOUTHWEST ITSELF BUILDING FROM ITS NEW TOEHOLD IN BALTIMORE COULD SET ITS SIGHTS ON FLORIDA 9309100094 930910 DRUG FIRMS MAY PAY 15 REBATE TO US FOR MEDICAID MEDICARE IN CLINTON PLAN BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON UNDER THE CLINTON HEALTH PLAN PHARMACEUTICAL COMPANIES WOULD BE REQUIRED TO GIVE AT LEAST A 15 REBATE TO THE GOVERNMENT FOR DRUGS COVERED IN THE MEDICARE AND MEDICAID PROGRAMS ACCORDING TO AN OUTLINE OF THE PLAN CIRCULATING ON CAPITOL HILL AS A CONDITION OF PARTICIPATION IN MEDICARE AND MEDICAID DRUG MANUFACTURERS MUST SIGN REBATE AGREEMENTS WITH THE SECRETARY OF HEALTH AND HUMAN SERVICES ACCORDING TO THE DOCUMENT IN ADDITION THE SECRETARY WOULD HAVE THE AUTHORITY TO EXCLUDE NEW PHARMACEUTICALS FROM MEDICARE COVERAGE IF A REASONABLE PRICE CAN'T BE NEGOTIATED THE DOCUMENT SAYS THE 239PAGE OUTLINE WHICH IS BEING REVIEWED BY LAWMAKERS AND THEIR STAFFS THIS WEEK BEHIND CLOSED DOORS WAS OBTAINED BY THE WALL STREET JOURNAL HOWEVER ADMINISTRATION OFFICIALS CAUTIONED THAT SOME OF THE DETAILS IN THE DOCUMENT WHICH IS DATED SEPT 7 ARE BEING REVISED PRESIDENT CLINTON HAS REPEATEDLY LAMBASTED DRUG COMPANIES FOR WHAT HE CALLS EXCESSIVE PRICES BUT HIS HEALTH PLAN COULD BE A BOON TO THE PHARMACEUTICAL INDUSTRY BECAUSE IT WOULD GUARANTEE PRESCRIPTIONDRUG COVERAGE TO ALL AMERICANS AND ADD A PRESCRIPTIONDRUG BENEFIT AS PART THE MEDICARE PROGRAM FOR THE ELDERLY HOWEVER THE WHITE HOUSE DOCUMENT SHOWS THAT THE PRESIDENT WILL TRY TO RECAPTURE AT LEAST SOME OF THOSE NEW DRUG COMPANY REVENUES WITH THE PROPOSED REBATES THE REBATES REQUIRED UNDER THE CLINTON PLAN WILL AMOUNT TO THE LARGER OF 15 OF THE AVERAGE MANUFACTURER RETAIL PRICE OR THE DIFFERENCE BETWEEN THAT PRICE AND THE WEIGHTED AVERAGE OF PRICES CHARGED TO HIGHVOLUME BUYERS SUCH AS HOSPITALS A RECENT FEDERAL LAW ALREADY REQUIRES DRUG COMPANIES TO GRANT A SIMILAR REBATE TO STATE MEDICAID PROGRAMS TO FURTHER PARE DRUG COSTS MEDICARE UNDER THE CLINTON SYSTEM ALSO WOULD ONLY COVER GENERIC DRUGS UNLESS THE PHYSICIAN INDICATES THAT A BRANDNAME MEDICATION IS REQUIRED THE WHITE HOUSE DOCUMENT SAYS THE ADMINISTRATION'S HEALTH PLAN WHICH THE WHITE HOUSE SAID MR CLINTON PLANS TO UNVEIL IN A 9 PM EDT SPEECH TO CONGRESS ON SEPT 22 WOULD GUARANTEE ALL AMERICANS A STANDARD PACKAGE OF HEALTH BENEFITS COVERING HOSPITALIZATION PREVENTIVE CARE PRESCRIPTION DRUGS MENTALHEALTH TREATMENT AND A VARIETY OF OTHER MEDICAL SERVICES THE PROPOSAL WOULD REQUIRE ALL EMPLOYERS TO PAY 80 OF THE AVERAGE PREMIUM FOR THE STANDARD BENEFITS PACKAGE IN A REGION THE GOVERNMENT WOULD SUBSIDIZE CARE FOR LOWINCOME PEOPLE AND ALSO PROVIDE FINANCIAL ASSISTANCE TO HELP SMALL AND LOWWAGE BUSINESSES AFFORD HEALTH INSURANCE THE WHITE HOUSE DOCUMENT MEANWHILE SHOWS THAT THE ADMINISTRATION WILL PROPOSE THAT THE GOVERNMENT ABSORB MOST OF THE COST OF PROVIDING HEALTH BENEFITS FOR THE NATION'S EARLY RETIREES POTENTIALLY HANDING A WINDFALL TO THE BIG THREE AUTO MAKERS AND OTHER MATURE INDUSTRIES UNDER THE PROVISION FOR EARLY RETIREES THE GOVERNMENT WOULD PICK UP 80 OF THE AVERAGE COST OF THE FEDERALLY GUARANTEED PACKAGE OF HEALTH BENEFITS THAT'S TO BE OFFERED BY REGIONAL INSURANCE POOLS IN THE CLINTON HEALTH SYSTEM DEPENDING ON CONTRACTUAL OBLIGATIONS EITHER EMPLOYERS OR THE EARLY RETIREES THEMSELVES WOULD PAY THE REMAINING 20 SUCH A MOVE WHICH WHITE HOUSE OFFICIALS ESTIMATE WOULD COST THE GOVERNMENT NO MORE THAN 4 BILLION TO 6 BILLION A YEAR IS DESIGNED TO BE A CARROT FOR BOTH INDUSTRY AND LABOR UNIONS AS WELL AS A WAY OF ENSURING THAT EARLY RETIREES DON'T FALL THROUGH THE CRACKS IN THE NEW HEALTHCARE SYSTEM EARLY RETIREES AGED 55 TO 65 ARE TOO YOUNG TO BE COVERED BY MEDICARE AND HAVE BECOME A MAJOR BURDEN FOR THE AUTO COMPANIES IN PARTICULAR LAST YEAR THE BIG THREE SPENT 24 BILLION ON RETIREE HEALTHCARE COSTS ACCOUNTING FOR 40 OF THEIR TOTAL HEALTHCARE BILL UNDER NEW ACCOUNTING RULES REQUIRING COMPANIES TO RECOGNIZE THE FUTURE COSTS OF RETIREE BENEFITS THE AUTO MAKERS HAVE BEEN FORCED TO TAKE SIZABLE HITS INCLUDING A 208 BILLION CHARGE LAST YEAR BY GENERAL MOTORS CORP CONCEIVABLY THE CLINTON PLAN COULD ALLOW THE AUTO MAKERS TO REVERSE SOME OF THOSE WRITEOFFS INDUSTRY ANALYSTS SAID THIS WOULD BE A BONANZA ESPECIALLY FOR GM SAID RONALD GLANTZ OF DEAN WITTER REYNOLDS INC IT WOULD HAVE A NICE IMPACT ON BOTH THE BALANCE SHEET AND EARNINGS JUST HOW MUCH OF A BONANZA THE PLAN MIGHT BE HOWEVER IS FAR FROM CLEAR WHITE HOUSE OFFICIALS SAID YESTERDAY THAT THEY STILL WERE DECIDING FOR EXAMPLE WHETHER TO RECAPTURE SOME OF THE FINANCIAL GAIN THAT COMPANIES WOULD ENJOY UNDER THE PLAN ACCORDING TO THE OUTLINE ONE OPTION UNDER REVIEW IS THAT EMPLOYERS WHO REALIZE A REDUCTION IN RETIREE HEALTH COSTS MAY BE ASSESSED A ONETIME PAYMENT FOR THE EXTRA COST ASSOCIATED WITH INDUCED EARLY RETIREMENTS DUE TO THE RETIREE SUBSIDY PROGRAM ANOTHER IDEA BEING KICKED AROUND INSIDE THE ADMINISTRATION WOULD FORCE COMPANIES TO DIVERT SOME OF THE MONEY SAVED ON EARLY RETIREES INTO ANY UNDERFUNDED PENSION PLANS THEY MAY HAVE IT ISN'T CERTAIN HOW SOMETHING LIKE THIS COULD BE ENFORCED HOWEVER MOREOVER NOT ALL EARLY RETIREES WILL SEE THEIR HEALTH COVERAGE PAID FOR BY THE GOVERNMENT THOSE WITH HIGHER INCOMES WOULD HAVE TO FOOT THE BILL THEMSELVES OR HAVE THEIR COMPANIES DO IT ADMINISTRATION OFFICIALS SAID YESTERDAY THAT THE EXACT CUTOFF POINT IS STILL BEING DECIDED TO QUALIFY EARLY RETIREES WOULD HAVE TO HAVE BEEN EMPLOYED FOR AT LEAST 10 CONSECUTIVE YEARS THE SAME REQUIREMENT TO BE ELIGIBLE FOR SOCIAL SECURITY EVEN IF THE EARLY RETIREE MEASURE PASSES THE CAR COMPANIES STILL WOULD HAVE SOME SUBSTANTIAL COSTS TO BEAR UNDER THEIR CONTRACT WITH THE UNITED AUTO WORKERS UNION THEY WOULD HAVE TO PAY THE 20 SHARE OF THE PREMIUMS AS WELL AS CERTAIN COPAYMENTS AND OTHER FEES IN THE CLINTON HEALTH PLAN FURTHERMORE THE BIG THREE PRESUMABLY WOULD CONTINUE TO HAVE TO PICK UP WHATEVER COSTS MEDICARE DOESN'T COVER FOR RETIRED WORKERS AND THEIR SPOUSES 65 YEARS AND OLDER STILL THE COMPANIES WOULD COME OUT FAR AHEAD WHITE HOUSE OFFICIALS SAID A PRIMARY AIM OF THE PLAN IS TO GIVE US INDUSTRY ESPECIALLY THE AUTO MAKERS A BREAK AND HELP THEM BE MORE COMPETITIVE THE ADMINISTRATION IS REALIZING NOT ONLY DO WE HAVE A PROBLEM FOR OLDER AMERICANS WHO LACK HEALTHCARE COVERAGE BUT WE ALSO HAVE A PROBLEM THAT MANUFACTURING COMPANIES CONFRONT IN GLOBAL COMPETITION SAID WALLY MAHER A WASHINGTONBASED OFFICIAL WITH CHRYSLER CORP NEAL TEMPLIN IN DETROIT CONTRIBUTED TO THIS ARTICLE 9309100093 930910 ARJO WIGGINS REPORTS PRETAX PROFIT DROPPED BY 36 IN FIRST SPECIAL TO THE WALL STREET JOURNAL LONDON ANGLOFRENCH PAPER GROUP ARJO WIGGINS APPLETON PLC ANNOUNCED A 36 DROP IN ITS FIRSTHALF PRETAX PROFIT CITING OVERCAPACITY IN THE EUROPEAN PULP AND PAPER SECTOR AS WELL AS 146 MILLION 225 MILLION OF SPECIAL RESTRUCTURING CHARGES THE PRETAX PROFIT DECLINE TO 63 MILLION FROM 991 MILLION WAS IN LINE WITH PREVIOUS FORECASTS BY ANALYSTS BUT THE UNCHANGED DIVIDEND OF 265 PENCE WAS RICHER THAN SOME FORECASTS WHICH HAD CALLED FOR A CUT TO 21 PENCE OR 20 PENCE A SHARE COB STENHAM THE COMPANY'S CHAIRMAN SAID THAT VERY DIFFICULT TRADING CONDITIONS IN EUROPE PARTICULARLY IN FRANCE GERMANY AND SPAIN AND OVERCAPACITY IN THE PULP AND PAPER INDUSTRY CONTINUED DURING THE FIRST HALF OF 1993 HE ADDED THAT PRESSURE WAS ESPECIALLY STRONG ON THE GROUP'S CARBONLESS AND COATEDPAPERS DIVISION ARJO WIGGINS TOOK THE SPECIAL CHARGES OF 146 MILLION IN THE FIRST HALF FOR THE PLANNED CLOSURE OF A GERMAN MILL NEXT MONTH AND A 25 REDUCTION OF THE WORK FORCE AT ITS SPANISH FORESTRY ARM IN 1994 NO SUCH CHARGES WERE TAKEN IN THE YEAREARLIER PERIOD THE COMPANY GAVE A BLEAK ASSESSMENT OF ITS OPERATIONS SAYING THE OUTLOOK FOR THE SECOND HALF OF THE YEAR IN EUROPE IS FOR A CONTINUANCE OF THE ARDUOUS BUSINESS CLIMATE THAT HAS PREVAILED SINCE LAST YEAR THE SECTORS OF THE CONTINENTAL EUROPEAN ECONOMIES IN WHICH WE OPERATE ARE EXPECTED TO REMAIN FIRMLY IN THE GRIP OF RECESSION IT ADDED THAT RECOVERY IN THE UK AND US CONTINUES BUT REMAINS UNEVEN AND SUBDUED SALES ROSE 10 TO 143 BILLION FROM 130 BILLION BUT THE COMPANY SAID THAT SALES VALUE FELL 5 AT CONSTANT EXCHANGE RATES REFLECTING PRICE CUTS IN MOST EUROPEAN OPERATIONS NORTH AMERICAN BUSINESSES SAW A 12 INCREASE IN OPERATING PROFIT IN DOLLAR TERMS WHICH WHEN TRANSLATED INTO STERLING WAS A 34 GAIN TO 712 MILLION 9309100092 930910 LETTERS TO THE EDITOR EARLIER DEFEAT OF HITLER WAS POSSIBLE FOR BRITAIN PAUL JOHNSON IN HIS REVIEW OF JOHN CHARMLEY'S BOOK THE END OF GLORY LEISURE & ARTS AUG 16 MAKES A FEW INTERESTING OBSERVATIONS BUT THERE IS SOME MERIT IN MR CHARMLEY'S IDEA OF A POSSIBLE NEGOTIATED ANGLOGERMAN PEACE IN 1940 THE WAR HAD BEEN GOING BADLY FOR BRITAIN IN 193940 A VICTORY WAS ESSENTIAL IF CHURCHILL HAD NOT TRIED TO AID THE GREEKS AND INSTEAD CONCENTRATED ON DEFEATING THE ITALIANS IN NORTH AFRICA BEFORE ROMMEL ARRIVED THEN BRITAIN WOULD HAVE HAD A STRONGER NEGOTIATING POSITION AFTER A MAJOR VICTORY IT WOULD HAVE BEEN IN BRITAIN'S INTEREST IN 1940 TO HAVE HAD A PEACE HITLER OF COURSE WANTED TO AVOID A TWOFRONT WAR IN PREPARATION FOR AN ATTACK ON THE USSR JUST AS HE HAD PREVENTED A TWOFRONT WAR IN 1939 WITH THE RUSSOGERMAN PACT BRITAIN HAD NO OBLIGATIONS TO THE SOVIET UNION INDEED THE COMMUNISTS WERE FALLING ALL OVER THEMSELVES IN THEIR EFFORTS TO APPEASE HITLER IN THE INTERVAL FROM 1940 TO 1941 BRITAIN COULD HAVE REINFORCED SINGAPORE WHICH MIGHT HAVE DETERRED AN ATTACK BY JAPAN WHEN HITLER DID ATTACK THE SOVIET UNION IN JUNE 1941 THE BRITISH COULD HAVE REENTERED THE WAR ON THEIR OWN TERMS BRITAIN THEN WOULD HAVE BEEN IN A STRONGER POSITION TO HAVE PREVENTED STALIN FROM TAKING OVER EASTERN EUROPE IF CHURCHILL HAD LISTENED TO THE VIEWS OF THE BRITISH MILITARY STRATEGISTS MAJOR GENERAL JFC FULLER AND CAPT LATER SIR BH LIDDELL HART THEN HE MIGHT HAVE BEEN ABLE TO DEFEAT HITLER SOONER AND HE MIGHT HAVE BEEN ABLE TO UNDERSTAND WHAT WAS THE STRATEGIC CENTER OF GRAVITY OF THE SOVIET UNION 9309100091 930910 SOMANETICS EXPECTS TO POST 750000 LOSS FOR ITS 3RD QUARTER TROY MICH SOMANETICS CORP EXPECTS TO REPORT A LOSS OF ABOUT 750000 OR SIX CENTS A SHARE IN THE THIRD QUARTER ENDED AUG 31 COMPARED WITH A LOSS OF 11 MILLION OR 10 CENTS A SHARE IN THE SAME PERIOD A YEAR AGO SAID RAYMOND W GUNN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SOMANETICS WHICH PRODUCES MEDICAL DIAGNOSTIC AND MONITORING EQUIPMENT SAID IT EXPECTS TO REPORT THIRDQUARTER SALES TOPPED 1 MILLION IN ITS FIRST FULL QUARTER OF COMMERCIAL SALES SINCE IT WENT PUBLIC IN MARCH 1991 SOMANETICS'S INITIAL PRODUCT THE INVOS 3100 CEREBRAL OXIMETER PROVIDES NONINVASIVE CONTINUOUS MONITORING OF OXYGEN LEVELS OF THE BLOOD IN AN ADULT'S BRAIN THE DEVICE WHICH RETAILS AT ABOUT 13500 IN THE US HELPS MEDICAL PERSONNEL TAKE EARLY CORRECTIVE ACTION WHEN NEEDED TO PREVENT CERTAIN BRAIN INJURIES AND REDUCE PATIENT HOSPITAL STAYS CURRENTLY A SIGNIFICANT PART OF SOMANETIC'S MARKET IS EXPORT WITH 40 DISTRIBUTORS IN 30 COUNTRIES AND PRODUCT PATENTS IN THE US JAPAN CANADA AND THE EUROPEAN PATENT COMMUNITY THE COMPANY SAID IT EXPECTS ITS EXPORT SALES TO COMPRISE ABOUT 50 OF ITS WORLDWIDE SALES GUNN SAID A BENCHMARK FOR THE PERIOD WAS SURPASSING THE COMPANY ESTIMATE OF 66000 IN ANNUAL SALES FOR EACH OF ITS 52 FULLTIME EMPLOYEES TO THE CURRENT RATE OF 80000 IN SALES PER EMPLOYEE HE SAID THE COMPANY IS CURRENTLY SHIPPING FROM A BACKLOG OF ORDERS AND ESTIMATES THE OVERALL MARKETPLACE FOR CEREBRAL OXIMETER AT OR IN EXCESS OF 12 BILLION IN AUGUST THE COMPANY SAID IT WOULD EXTEND THE REDEMPTION DATE FOR ITS CLASS B WARRANTS UNTIL DEC 29 TO ALLOW HOLDERS TO REVIEW THE COMPANY'S THIRDQUARTER RESULTS AND TO PROVIDE MORE TIME TO EXERCISE THE WARRANTS MR GUNN SAID ONE OF THE COMPANY'S 1994 OPERATING PLAN OBJECTIVES IS TO EXCEED NET INCOME OF 24 MILLION ANNUALLY BEFORE TAXES 9309100090 930910 MARRIAGE OF RENAULT VOLVO ISN'T ALL BLISS OFFICERS BEGIN ROAD SHOW' AMID DROP IN SWEDISH CONCERN'S STOCK BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL THIS WEEK'S MARRIAGE OF RENAULT SA AND AB VOLVO MAY HAVE DELIGHTED BOTH COMPANIES' MANAGEMENTS BUT THE NEWS SENT VOLVO STOCK PLUMMETING ON INTERNATIONAL EQUITY MARKETS UNDER THE COMPLEX MERGER PLAN UNVEILED IN PARIS ON MONDAY RENAULT AND VOLVO AGREED TO JOIN THEIR CAR TRUCK AND CERTAIN OTHER OPERATIONS TO FORM THE WORLD'S SIXTHBIGGEST AUTO GROUP AND ONE OF EUROPE'S TOP 20 CORPORATIONS PENDING VARIOUS REGULATORY CLEARANCES THE NEW COMPANY KNOWN AS RENAULTVOLVO RVA WILL BEGIN OPERATIONS JAN 1 SINCE THE ANNOUNCEMENT VOLVO'S BENCHMARK BSTOCK THE CLASS OF EQUITY MOST TRADED INTERNATIONALLY HAS PLUNGED 98 TRADING REMAINED VOLATILE YESTERDAY AS VOLVO BSHARES FELL 5 SWEDISH KRONOR 63 CENTS CLOSING AT 442 KRONOR 5556 THE FOURTH STRAIGHT DAILY DECLINE SOME ANALYSTS SAY VOLVO SHARES DESERVE THE POUNDING BECAUSE THE FRENCH GOT THE BETTER OF THE MERGER BARGAINING AFTER ALL THE FRENCH GOVERNMENT SNAGGED 65 OF THE NEW AUTO GIANT WHILE VOLVO SETTLED FOR A MODEST 35 OTHER ANALYSTS ARGUE THAT THE FALL IN VOLVO STOCK IS A RESULT MORE OF PROFITTAKING THAN INVESTORS PANNING THE MATCH PRIOR TO MONDAY VOLVO STOCK HAD SURGED 43 FOR THE YEAR TO DATE DRIVEN STEADILY HIGHER IN RECENT WEEKS BY RAMPANT SPECULATIVE BUYING MUCH OF THIS WEEK'S DECLINE REFLECTS UNLOADING OF MANY OF THOSE SPECULATIVE POSITIONS ANALYSTS INSIST ON WEDNESDAY AS THE CHAMPAGNE TOASTS ABATED VOLVO CHAIRMAN PEHR GYLLENHAMMAR AND RENAULT CHAIRMAN LOUIS SCHWEITZER ATTEMPTED DAMAGE CONTROL IN SOCALLED ROAD SHOWS WITH INVESTORS AND ANALYSTS IN STOCKHOLM AND LONDON THOUGH ACCUSTOMED TO ABRUPT SWINGS IN VOLVO'S STOCK PRICE MR GYLLENHAMMAR CONCEDED HE HAD HOPED FOR A MORE POSITIVE REACTION TO THE MERGER BUT WE THINK AN AGREEMENT OF THIS SIZE AND SCOPE HAS TO BE EXPLAINED AND FULLY UNDERSTOOD BY THE MARKET BEFORE IT CAN BE FAIRLY JUDGED THE VOLVO CHIEF SAID PART OF THE PROBLEM IS THAT THE MERGER PLAN TRIES TO SIMULTANEOUSLY ADDRESS TWO DISTINCTLY DIFFERENT TIME FRAMES BEFORE AND AFTER PRIVATIZATION OF THE FRENCH GOVERNMENT'S RENAULT HOLDING ADDING TO THE CONFUSION MESSRS GYLLENHAMMAR AND SCHWEITZER REMAIN EXTREMELY DISCREET IN PUBLIC COMMENTS FOR FEAR OF OFFENDING FRENCH POLITICIANS YET SPEAKING PRIVATELY OFFICIALS INSIST THE POSTPRIVATIZATION PICTURE OF RENAULTVOLVO IS THE ONE THAT REALLY COUNTS AND THAT PICTURE IS MUCH MORE FAVORABLE TO VOLVO THAN MANY INVESTORS APPEAR TO HAVE ASSUMED AFTER PRIVATIZATION FOR EXAMPLE VOLVO WILL EMERGE AS RENAULTVOLVO'S BIGGEST SINGLE SHAREHOLDER WITH COMBINED DIRECT AND INDIRECT HOLDINGS OF 35 THAT IS NEARLY DOUBLE THE INDIRECT 1785 STAKE IN RENAULTVOLVO THAT THE FRENCH GOVERNMENT WILL SELL TO A SELECT GROUP OF DOMESTIC CORPORATIONS AND FINANCIAL INSTITUTIONS THE REMAINING 47 OF RENAULTVOLVO NOW DIRECTLY CONTROLLED BY THE FRENCH GOVERNMENT WILL BE SOLD TO PRIVATE INVESTORS UNDER A BROADLY BASED PUBLIC OFFERING AFTER THAT RENAULTVOLVO WILL BECOME A PUBLICLY TRADED COMPANY LINCHPIN OF THE NEW GROUP'S POSTPRIVATIZATION OWNERSHIP WILL BE A PRIVATE HOLDING COMPANY DESIGNATED SO FAR AS RVC WHICH WILL OWN 35 OF RENAULTVOLVO THE TRUSTED HARD CORE OF FRENCH INSTITUTIONAL SHAREHOLDERS WILL CONTROL 51 OF RVC VOLVO 49 THOUGH SHORT OF MAJORITY RVC'S STAKE IN RENAULTVOLVO WILL GUARANTEE UNASSAILABLE CONTROL THROUGH VARIOUS ANTITAKEOVER PROVISIONS AND OTHER TERMS OF A SHAREHOLDERS' PACT BETWEEN VOLVO AND THE FRENCH GOVERNMENT RVC'S BOARD WILL INCLUDE THREE MEMBERS APPOINTED BY THE FRENCH AND AN EQUAL NUMBER SELECTED BY VOLVO THE SEVENTH MEMBER A FRENCH APPOINTED CHAIRMAN WOULD HAVE A POTENTIALLY DECISIVE VOTE BUT THE SHAREHOLDERS' PACT INSURES VOLVO VETO POWER OVER MAJOR STRATEGIC DECISIONS SUCH AS INVESTMENT PROGRAMS OR CAPITAL INCREASES BECAUSE OF FRENCH LEGISLATION GOVERNING RENAULT'S BYLAWS THE RVC BOARD MUST CONTINUE TO INCLUDE VARIOUS STATE APPOINTEES UNTIL PRIVATIZATION MR GYLLENHAMMAR SAID BUT AFTER PRIVATIZATION THERE WILL BE A PERFECT BALANCE PENDING PRIVATIZATION THE SHAREHOLDER AGREEMENT PROHIBITS VOLVO FROM SELLING ANY OF ITS CURRENT STAKE IN EITHER RENAULT/VOLVO OR RVC AS PART OF PRIVATIZATION THE FRENCH GOVERNMENT ALMOST CERTAINLY WILL DESIGN A SOCALLED GOLDEN SHARE WHICH WOULD THWART HOSTILE TAKEOVER ATTEMPTS BUT ALSO PREVENT VOLVO FROM POSSIBLY WRESTING MAJORITY CONTROL OF RENAULTVOLVO EXCEPT THROUGH A FRIENDLY TRANSACTION ACCORDINGLY THE PARENT VOLVO WILL REMAIN IN A PECULIAR SORT OF LIMBO FOR THE NEXT 18 MONTHS A PUBLICLY TRADED COMPANY VASTLY CHANGED BY A HUGE INDUSTRIAL MERGER IN PROGRESS MR GYLLENHAMMAR AND SOEREN GYLL VOLVO'S CHIEF EXECUTIVE OFFICER TRIED HARD TO SPELL OUT THE COMPANY'S PROSPECTS MORE CLEARLY AT THIS WEEK'S ANALYSTS' MEETINGS IN LINE WITH MR GYLLENHAMMAR'S VISION THE FUTURE VOLVO ESSENTIALLY WILL BE A HOLDING COMPANY WITH MAJOR INTERESTS IN THE AUTO INDUSTRY VIA RENAULT VOLVO PHARMACEUTICALS VIA AFFILIATE PROCORDIA AB AND A CORE OF BRANDED CONSUMER PRODUCT OPERATIONS INHERITED AS PART OF A BREAKUP PLAN FOR PROCORDIA BRANDED CONSUMER PRODUCTS ANNOUNCED EARLIER THIS YEAR THE MERGER OF CAR AND TRUCK OPERATIONS WITH RENAULT WILL SHRINK VOLVO'S TOTAL ASSETS TO ABOUT 58 BILLION KRONOR FROM 119 BILLION KRONOR BEFORE THE MERGER PRO FORMA FIRSTHALF ACCOUNTS RESTATED FOR THE MERGER INDICATE PRETAX PROFIT IN THE PERIOD WOULD HAVE BEEN HALVED TO 200 MILLION KRONOR AND SALES SLASHED TO ABOUT 39 BILLION KRONOR FROM 488 BILLION KRONOR HAD THE MERGER BEEN IN EFFECT THE BRANDED CONSUMER PRODUCTS BUSINESS WILL PRODUCE AMPLE CASH FLOW IN COMING YEARS BUT VOLVO'S HEFTY DEBT WILL SWALLOW A BIG CHUNK OF FUNDS LEAVING THE FUTURE OUTLOOK HEAVILY DEPENDENT ON DIVIDEND INCOME FROM RENAULTVOLVO MR GYLLENHAMMAR INSISTS IT IS TOO EARLY TO PREDICT WHAT 1994 WILL BRING FOR RENAULT/VOLVO NOTING THE AUTO INDUSTRY REMAINS IN A RECESSION AND PROFIT FIGURES FOR MOST EUROPEAN AND JAPANESE COMPANIES THIS YEAR WILL BE VERY MEAGER 9309100089 930910 INTERNATIONAL WORLD BANK TO SUSPEND LENDING TO IRAN BOWING TO PRESSURE FROM WHITE HOUSE BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT THE BEHEST OF THE CLINTON ADMINISTRATION THE WORLD BANK QUIETLY AGREED TO PUT A HOLD ON LOANS TO IRAN UNTIL AT LEAST LATER THIS YEAR THE US HAS BEEN TRYING FOR MONTHS TO PERSUADE ITS EUROPEAN ALLIES AND JAPAN TO CURTAIL TRADE WITH TEHRAN AND HAS BEEN URGING THE BANK TO CUT OFF LENDING TO IRAN ADMINISTRATION OFFICIALS MAINTAIN THAT IRAN IS A LEADING SPONSOR AND PERPETUATOR OF INTERNATIONAL TERRORISM IN CONGRESSIONAL TESTIMONY THIS YEAR SECRETARY OF STATE WARREN CHRISTOPHER COMPLAINED THAT THE ALLIES WERE GUIDED MOSTLY BY COMMERCIAL INTERESTS AND HAD RESISTED JOINING THE US IN TRYING TO PRESSURE IRAN TO ALTER ITS BEHAVIOR MR CHRISTOPHER RAISED THE SUBJECT AGAIN AT A NORTH ATLANTIC TREATY ORGANIZATION FOREIGN MINISTERS MEETING IN EUROPE IN JUNE TREASURY OFFICIALS PRIVATELY HAVE BEEN URGING THE BANK TO STOP SUCH LENDING IT IS UNDERSTOOD THAT US OFFICIALS PROVIDED THE WORLD BANK WITH INTELLIGENCE INFORMATION DOCUMENTING TEHRAN'S INVOLVEMENT IN TERRORIST ENTERPRISES US OFFICIALS ADDED THAT UNLIKE DURING PREVIOUS EFFORTS OTHER NATIONS HAD JOINED THE US TO PERSUADE THE BOARD TO PUT A HOLD ON IRANIAN LOANS THE OFFICIALS DECLINED TO NAME THE OTHER COUNTRIES WORLD BANK OFFICIALS HAVE TOLD THE ADMINISTRATION THEY WON'T APPROVE FURTHER LOANS TO IRAN UNTIL THE BANK'S BOARD HOLDS A BROAD DISCUSSION ON LENDING TO IRAN MEANWHILE THE BANK'S STAFF HAS BEEN DISCUSSING POSSIBLE PROJECTS WITH OFFICIALS IN TEHRAN ACCORDING TO A MONTHLY OPERATING SUMMARY PREPARED FOR THE BOARD FOUR IRANIAN PROJECTS ARE UNDER CONSIDERATION TOTALING ABOUT 475 MILLION THESE INCLUDE EDUCATION NATURAL RESOURCE DEVELOPMENT AND SEWERAGE PROJECTS ACCORDING TO THE DOCUMENT A WORLD BANK OFFICIAL SAID THE PROJECTS WON'T BE BROUGHT TO THE BOARD FOR ACTION UNTIL AN OVERALL POLICY ON IRAN HAS BEEN DETERMINED IN JUNE BEFORE PRESIDENT CLINTON LEFT TO ATTEND THE TOKYO SUMMIT OF HEADS OF MAJOR INDUSTRIAL COUNTRIES A BIPARTISAN GROUP OF SENATORS URGED HIM TO MAKE THE CURTAILMENT OF TRADE AND CREDITS TO IRAN A TOP PRIORITY THE LETTER NOTED THAT THE ALLIES OVERRODE US OPPOSITION AND APPROVED 450 MILLION IN LOANS FROM THE WORLD BANK LAST YEAR DESPITE THE CLEAR AND GROWING IRANIAN THREAT IN A REPLY LETTER TO REPUBLICAN SEN CONNIE MACK OF FLORIDA MR CLINTON SAID WE BELIEVE THAT A UNIFIED POLICY OF ECONOMIC PRESSURE CAN BRING IRAN TO ALTER ITS POLICIES IRAN ALREADY IS SUFFERING ECONOMICALLY LARGELY BECAUSE OF MISMANAGEMENT OF ITS ECONOMY AND SAGGING OIL PRICES IRAN'S FOREIGN DEBT TRIPLED TO 17 BILLION IN 1991 FROM 1990 AND ROSE TO MORE THAN 20 BILLION IN 1992 ACCORDING TO A SENIOR US ANALYST THE ANALYST ESTIMATED THAT IRAN IS ABOUT 3 BILLION IN ARREARS IN DEBT REPAYMENTS AS A RESULT SOME EUROPEAN AND JAPANESE COMPANIES ALREADY HAVE TRIMMED BACK ON NEW CREDITS 9309100088 930910 LETTERS TO THE EDITOR WHAT WE DO FOR YOU IT IS INCORRECT TO IMPLY THAT ALL THE DEPARTMENT OF ENERGY DOES IS REGULATE THE OIL AND GAS INDUSTRY THE BUDGET CUTS CLINTON MISSED BY STEPHEN MOORE AND WILLIAM NISKANEN EDITORIAL PAGE AUG 16 THE DEPARTMENT GOT OUT OF THE REGULATORY BUSINESS WHEN PRICE CONTROLS WERE ENDED IN 1981 TODAY IT HAS A MUCH BROADER MISSION WE MUST PROVIDE THE SCIENTIFIC FOUNDATION TECHNOLOGY POLICY AND INSTITUTIONAL LEADERSHIP NECESSARY TO ACHIEVE EFFICIENCY IN ENERGY USE DIVERSITY IN ENERGY SOURCES A MORE PRODUCTIVE AND COMPETITIVE ECONOMY IMPROVED ENVIRONMENTAL QUALITY AND A SECURE NATIONAL DEFENSE CLEANING UP RADIOACTIVE NUCLEAR WASTE PROMOTING ALTERNATIVEFUELED VEHICLES AND RENEWABLE ENERGY SOURCES AND NUCLEAR WEAPONS DISARMAMENT AND NONPROLIFERATION ACTIVITIES ARE ALL VITAL TO US INTERESTS HERE AND ABROAD 9309100087 930910 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 BANK OF MONTREAL 300 MILLION OF SUBORDINATED NOTES DUE SEPT 15 2005 PRICED AS 61S AT 9975 TO YIELD 613 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS RATED SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO EXPORTIMPORT BANK OF THE US 172 MILLION OF CERTIFICATES PRICED IN TWO ISSUES THROUGH UNDERWRITER CHASE SECURITIES INC THE CERTIFICATES ARE BACKED BY EXIMBANK PROMISSORY NOTES THAT PROVIDE FINANCING FOR AEROLINEAS ARGENTINAS SA GUARANTEED EXPORT TRUST 1993C WAS PRICED AT PAR WITH A COUPON OF 52 THE CERTIFICATES HAVE A FINAL MATURITY OF OCT 15 2004 AND AN AVERAGE LIFE OF 558 YEARS PRINCIPAL AND INTEREST WILL BE PAID QUARTERLY BEGINNING OCT 15 GUARANTEED EXPORT TRUST 1993D WAS PRICED AT PAR WITH A COUPON OF 523 THE CERTIFICATES HAVE A FINAL MATURITY OF MAY 15 2005 AND AN AVERAGE LIFE OF 592 YEARS PRINCIPAL AND INTEREST WILL BE PAID QUARTERLY BEGINNING NOV 15 THE CERTIFICATES WERE RATED TRIPLEA BY BOTH S&P AND MOODY'S INVESTORS SERVICE INC A LIQUIDITY FACILITY WAS PROVIDED BY THE PRIVATE EXPORT FUNDING CORP FEDERAL HOME LOAN BANK SYSTEM 200 MILLION OF NOTES DUE SEPT 20 1995 PRICED AT PAR TO YIELD 384 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE BASIS POINT ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE SEPT 16 1998 PRICED AS 49S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 19 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FORD MOTOR CREDIT CO 500 MILLION OF FLOATINGRATE NOTES DUE SEPT 16 1998 SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE NOTES WILL PAY AND FLOAT QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 35 BASIS POINTS ACCORDING TO MCM CORPORATEWATCH THE NOTES CALLABLE IN TWO YEARS WILL BE SOLD INITIALLY AT PAR AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO LORAL CORP 200 MILLION OF DEBENTURES DUE SEPT 15 2023 PRICED AS 7S AT 98764 TO YIELD 71 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC NATIONSBANK CORP 300 MILLION OF SENIOR NOTES DUE SEPT 15 1998 PRICED AS 5125S AT 99782 TO YIELD 5175 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY NATIONSBANC CAPITAL MARKETS NEVADA 1676 MILLION REFUNDING BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING TRUE INTEREST COST AT 46887 YIELDS RANGE FROM 31 IN 1995 TO 5 IN 20102012 BOTH MOODY'S AND S&P RATED THE ISSUE DOUBLEA SOUTH CAROLINA PUBLIC SERVICE AUTHORITY 6425 MILLION 1993 REFUNDING SERIES C REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 27 IN 1994 TO 545 IN 2032 BONDS DUE IN 20032009 AND 2013 ARE INSURED BY AMBAC INDEMNITY CORP WHILE BONDS DUE IN 2024 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO ALL THOSE SECURITIES CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE BALANCE OF THE BONDS ARE EXPECTED TO RECEIVE A SINGLEA1 RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P FEDERAL HOME LOAN MORTGAGE CORP 325 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1604 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NIKKO SECURITIES CO INTERNATIONAL THE OFFERING SERIES 1993203 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS AMERICAN EXPRESS CO 600 MILLION GLOBAL ISSUE OF CHARGECARD CERTIFICATES PRICED AS 5375S AT 99854 TO YIELD 54 ACCORDING TO MCM CORPORATEWATCH THE OFFERING AMERICAN EXPRESS MASTER TRUST 19931 WAS STRUCTURED AS A SEVENYEAR BULLET SECURITY WITH AN EXPECTED MATURITY OF SEPT 15 2000 AND A LEGAL FINAL MATURITY OF JULY 15 2001 THE YIELD AT PRICING REFLECTED A 38BASISPOINT SPREAD ABOVE THE TREASURY 875 NOTE OF AUGUST 2000 RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ABOUT 25 OF THE ISSUE WAS SOLD OVERSEAS GENERAL MOTORS ACCEPTANCE CORP 134 BILLION OF AUTOMOBILELOAN ASSETBACKED CERTIFICATES PRICED AS 4S AT 9985 TO YIELD 414 ACCORDING TO MCM CORPORATEWATCH THE OFFERING GMAC 1993B GRANTOR TRUST HAS A 149 YEAR AVERAGE LIFE THE PRICING REFLECTED A YIELD SPREAD OF 30 BASIS POINTS ABOVE THE TREASURY'S TWOYEAR NOTE RATED TRIPLEA BY FITCH INVESTORS SERVICE MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC GMAC IS THE FINANCE ARM OF GENERAL MOTORS CORP THE COLLATERAL BACKING THE TRANSACTION CONSISTS OF RETAIL INSTALLMENT CONTRACTS ON NEW AND USED AUTOS AND LIGHT TRUCKS HOUSEHOLD AFFINITY FUND CORP 9529 MILLION OF CREDITCARD CERTIFICATES PRICED LATE WEDNESDAY IN TWO PARTS THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE OFFERING HOUSEHOLD AFFINITY CREDIT CARD MASTER TRUST I 19931 IS BACKED BY GENERAL MOTORS CORP CREDITCARD RECEIVABLES HOUSEHOLD FINANCE CORP IS SERVICING THE CREDITCARD LOANS THE 900 MILLION SENIOR FLOATING RATE CLASS A CERTIFICATES WERE PRICED WITH A 3325 COUPON AT 999062 TO YIELD 3345 THE ISSUE FLOATS 20 BASIS POINTS ABOVE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES RATED TRIPLEA BY BOTH MOODY'S AND S&P HAVE AN AVERAGE LIFE OF 504 YEARS THE 52945 MILLION IN SUBORDINATE FIXEDRATE CLASS B CERTIFICATES WAS PRICED AS 53S AT 99853313 TO YIELD 539 A 65 BASISPOINTSPREAD ABOVE THE TREASURY'S SEVENYEAR NOTE DUE APRIL 1999 THE CERTIFICATES WITH AN AVERAGE LIFE OF 558 YEARS WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE TRANSACTION TRUSTEE IS BANK OF NEW YORK THE CERTIFICATES WILL BE ISSUED IN A CONTROLLED AMORTIZATION STRUCTURE MONTHLY PAYMENTS BEGIN OCT 15 WESTERN FINANCIAL SAVINGS BANK 1875 MILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES PRICED AS 425S AT 99847 TO YIELD 436 ACCORDING TO MCM CORPORATEWATCH THE OFFERING WESTERN FINANCIAL AUTO LOAN GRANTOR TRUST 19933 HAS AN AVERAGE LIFE OF 185 YEARS THE PRICING REFLECTS A YIELD SPREAD OF 30 BASIS POINTS ABOVE THE TREASURY'S TWOYEAR NOTE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP WESTERN FINANCIAL IS A UNIT OF WESTCORP BANCO DO ESTADO DE SAO PAULO SA BRAZIL 150 MILLION OF 925 EUROBONDS DUE OCT 4 1996 AT ISSUE AND REOFFER PRICE 9994 VIA CREDIT SUISSE FIRST BOSTON LTD BONDS YIELD SPREAD OF 515 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES ONE POINT INTEREST PAYABLE SEMIANNUALLY BARCLAYS BANK PLC UK 100 MILLION OF 9 PERMANENT INTERESTBEARING CAPITAL BONDS AT ISSUE AND REOFFER PRICE 100458 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 8959 A MARGIN OF 155 BASIS POINTS ABOVE 875 UK GILT DUE 2017 BONDS CALLABLE AT LEVEL GILT YIELDS AT ANY TIME UP TO AND INCLUDING OCT 10 2023 THEREAFTER CALLABLE AT ANY TIME AT PAR FEES 075 POINT CREDIT FONCIER DE FRANCE FRENCH AGENCY 500 MILLION FRENCH FRANCS OF 8375 EUROBONDS DUE FEB 8 2007 AT ISSUE AND REOFFER PRICE 11451 VIA CAISSE CENTRALE DES BANQUES POPULAIRES BONDS YIELD 669 A MARGIN OF 18 BASIS POINTS ABOVE FRENCH TREASURY DUE 2008 BONDS WILL TRADE INTERCHANGEABLY WITH THREE BILLION FRANCS OF OUTSTANDING IDENTICAL NOTES TOTAL ISSUE SIZE NOW 35 BILLION FRANCS FEES UNDISCLOSED HYDRO QUEBEC CANADA 200 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE OCT 1 2005 AT ISSUE AND REOFFER PRICE 9975 VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT 025 POINT BELOW SIXMONTH DOLLAR LONDON INTERBANK OFFERED RATE MINIMUM COUPON 5 MAXIMUM 8 FEES 05 POINT ONTARIO CANADIAN PROVINCE 500 MILLION CANADIAN DOLLARS OF 725 EUROBONDS DUE SEPT 27 2005 AT ISSUE PRICE 100275 VIA WOOD GUNDY INC REOFFERED AT 985 TO YIELD 7443 A MARGIN OF 63 BASIS POINTS ABOVE BENCHMARK 10YEAR CANADIAN GOVERNMENT BOND FEES 2125 POINTS CHINA SOVEREIGN 30 BILLION YEN OF 4375 EUROBONDS DUE SEPT 22 1998 AT ISSUE AND REOFFER PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS YIELD 4375 FEES 025 POINT TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 50 MILLION OF 5 DEUTSCHE MARKLINKED EUROBONDS DUE SEPT 29 1995 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD REDEMPTION AMOUNT CALCULATED ON FOLLOWING FORMULA 100 PLUS 15 TIMES THE DIFFERENCE BETWEEN 57 AND THREEYEAR MARK OFFER SWAP RATE BONDS REPAID IN US DOLLARS SUBJECT TO MINIMUM OF ZERO THREEYEAR MARK RATE DETERMINED BY CALCULATING AGENT CS FINANCIAL PRODUCTS ON SEPT 26 1995 BY REFERENCE TO THREEYEAR MARK OFFER SWAP RATE AS PUBLISHED ON TELERATE PAGE 42280 AT 1100 GMT ON THAT DATE BONDS ARE UNSECURED GENERAL OBLIGATIONS OF ISSUER ISSUED OFF EURO MEDIUMTERMNOTE PROGRAM NO FEES UMWELT UND WASSERWIRTSCHAFTS FOND AUSTRIA 500 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE NOV 4 2005 PRICED AT 10225 VIA CREDIT SUISSE FEES 2875 POINTS WESTPAC BANKING CORP AUSTRALIA 350 MILLION OF FLOATINGRATE EURONOTES DUE OCTOBER 1995 AT ISSUE AND REOFFER PRICE 9995 VIA SALOMON BROTHERS INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS PLUS 10 BASIS POINTS FEES 0125 POINT WORLD BANK SUPRANATIONAL C200 MILLION OF 625 EUROBONDS DUE OCT 15 1998 AT ISSUE PRICE 101445 VIA DAIWA EUROPE LTD AND SANWA INTERNATIONAL PLC REOFFERED AT 9982 TO YIELD 6293 A MARGIN OF 10 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES 1875 POINTS 9309100086 930910 TECHNOLOGY LATEST COMPAQ IDEA TO BALLYHOO ITS PCS IS TO PUT ON A SHOW SIZE OF TRADE MEETING EVOKES DE MILLE MOVIES BUT SOME WONDER WHAT IT'S ABOUT BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP WILL ROLL OUT ITS LATEST GIMMICK IN THE PERSONAL COMPUTER MARKETING WARS NEXT WEEK THE COMPANYSPONSORED TRADE SHOW AN EXPECTED THRONG OF ABOUT 5000 INDUSTRY BIGWIGS INCLUDING TOP EXECUTIVES FROM INTEL CORP MICROSOFT CORP AND NOVELL INC WILL PAY 700 EACH TO HEAR COMPAQ'S VIEW OF THE PC WORLD AT AN EXHIBITION AND CONFERENCE BEGINNING MONDAY IN HOUSTON THE HOUSTONBASED PC GIANT HAS ALSO ASSEMBLED A 60000SQUAREFOOT TRADE SHOW WITH 96 BOOTHS ALONG WITH 120 TUTORIALS FEATURING NEARLY 300 SPEAKERS THE WHOLE AFFAIR DUBBED INNOVATE WILL BE CHRONICLED BY ABOUT 225 REPORTERS THE BIGGEST NEWS MEDIA CONTINGENT TO HIT THE CITY SINCE FORMER PRESIDENT GEORGE BUSH BROUGHT THE WORLD ECONOMIC SUMMIT TO HOUSTON THREE YEARS AGO WHILE COMPANYSPONSORED SUMMITS AREN'T UNUSUAL IN THE TECHNOLOGY WORLD DIGITAL EQUIPMENT CORP HOSTED THE LAVISH DECWORLD SHOW FOR YEARS ANALYSTS NOTE THAT GLITZ HAS RECENTLY BEEN IN SHORT SUPPLY IN THE PERSONAL COMPUTER BUSINESS PLUNGING PRICES HAVE CUT DEEPLY INTO COMPANY MARGINS EVEN AT COMPAQ AND MOST INDUSTRY WATCHERS NOW PREDICT PC DEMAND WILL SLOW THROUGHOUT THE REST OF THE YEAR THOUGH COMPAQ WON'T SAY HOW MUCH IT IS SPENDING ON INNOVATE OPPENHEIMER & CO ANALYST JAMES POYNER FOR ONE ALREADY HAS RUN THE NUMBERS YOU BETTER HAVE THIS IN YOUR MODEL IN THE THIRD QUARTER HE SAYS I'M SURE THIS IS A SOLID 250000 HURRAH OFFICIALS AT COMPAQ WHICH WILL USE THE SHOW TO INTRODUCE NEW COMPUTER SERVERS AND OTHER PRODUCTS SAY THE TRADE SHOW IS SIMPLY PART OF THE COMPANY'S ONGOING MARKETING PROGRAM INDEED COMPAQ'S CHIEF EXECUTIVE OFFICER ECKHARD PFEIFFER HAS SOUGHT FOR MONTHS TO PITCH THE COMPANY AS A TECHNOLOGY PACESETTER PARTICULARLY IN LIGHT OF THE CONTINUING WOES AT ARCHRIVAL INTERNATIONAL BUSINESS MACHINES CORP THE POLE POSITION IN THIS BUSINESS HAS BEEN UP FOR GRABS FOR A WHILE SAID CHERYL CURRID A HOUSTON COMPUTER CONSULTANT HIRED BY COMPAQ TO HELP ORGANIZE THE TRADE SHOW NO DOUBT THERE'S A BIGGER AGENDA HERE SO FAR THOUGH COMMUNICATING THAT AGENDA AND THE RATIONALE BEHIND NEXT WEEK'S EVENT HAS PROVEN DIFFICULT FOR COMPAQ GIVEN THE PC INDUSTRY'S CURRENT WOES I'M TOTALLY CONFUSED SAYS A CALIFORNIA ANALYST SCHEDULED TO SPEAK AT THE TRADE SHOW I STILL HAVEN'T THE FAINTEST IDEA WHAT THIS IS ABOUT COMPAQ OFFICIALS SAY THEY AREN'T NECESSARILY EXPECTING THE EVENT TO GENERATE SALES RATHER THEY SEE IT OFFERING MORE EPHEMERAL BENEFITS LIKE INCREASED NAME IDENTIFICATION AND BRAND AWARENESS IT REALLY IS A SMART MARKETING INVESTMENT A COMPAQ SPOKESMAN SAID AT DELL COMPUTER CORP COMPAQ'S AUSTIN TEXAS COMPETITOR EXECUTIVES HAVE BEGUN TO POINT TO THE SHOW AS EVIDENCE OF A RETURN OF HUBRIS AT COMPAQ WHICH ONLY RECENTLY HAS SHAKEN OFF A REPUTATION AS AN ARROGANT LAVISH SPENDER ARE WE ALREADY BACK TO THE COMPAQ OF OLD ASKED THOMAS MARTIN DELL'S VICE PRESIDENT OF WORLDWIDE MARKETING YOU GOTTA WONDER 9309100085 930910 TECHNOLOGY HEALTH GROUP URGES US FOCUS ON PREVENTION BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A COALITION REPRESENTING MORE THAN 2000 US COMPANIES SAID THE CLINTON ADMINISTRATION'S HEALTH REFORM PLAN WILL FAIL UNLESS IT GIVES MUCH MORE EMPHASIS TO PROMOTING HEALTH AND PREVENTING DISEASE THE POSITION REFLECTS A GROWING CONCERN AMONG EMPLOYERS AND HEALTH POLICY EXPERTS THAT REDUCING DEMAND FOR MEDICAL SERVICES IS A CRITICAL INGREDIENT TO CONTAINING HEALTHCARE COSTS WHILE THE CLINTON PROGRAM IS EXPECTED TO INCLUDE SUCH SERVICES AS CHILDHOOD IMMUNIZATIONS AND PRENATAL CARE THE COALITION MAINTAINS THAT MORE ACTIVE HEALTH PROMOTION EFFORTS INCLUDING ANTISMOKING CAMPAIGNS EXERCISE AND NUTRITION PROGRAMS BLOOD PRESSURE AND CHOLESTEROL SCREENINGS AND PERIODIC ASSESSMENTS OF PERSONAL HEALTH RISKS ARE NECESSARY TO MAKE A LONGTERM DIFFERENCE IN DEMAND FOR HEALTH SERVICES WE'RE CALLING FOR A SHIFT IN EMPHASIS FROM DIAGNOSIS AND TREATMENT IN MEDICAL CARE TOWARD HEALTH PROMOTION AND DISEASE PREVENTION SAID R WILLIAM WHITMER COORDINATOR OF THE COALITION BUT THE COALITION CALLED THE WORKSITE HEALTH PROMOTION ALLIANCE IS CONCERNED THAT ELEMENTS OF MR CLINTON'S HEALTH PLAN COULD UNDERMINE THE GROWING NUMBER OF WORKSITE HEALTH PROMOTION PROGRAMS THAT ACCORDING TO SOME STUDIES ARE PROVING EFFECTIVE IN REDUCING HEALTH COSTS AND IMPROVING WORKER PRODUCTIVITY THE PLAN IS EXPECTED TO ENDORSE A CONCEPT KNOWN AS COMMUNITY RATING IN WHICH EMPLOYERS WOULD PAY THE SAME PREMIUM FOR THEIR EMPLOYEES NO MATTER HOW MANY HEALTHCARE SERVICES THEIR WORKERS USED THAT MEANS EMPLOYERS WOULDN'T POCKET ANY DIRECT SAVINGS FOR HELPING THEIR WORKERS STAY HEALTHY WE'D LIKE TO SEE ENOUGH FLEXIBILITY IN THE PLAN SO INCENTIVES REMAIN TO SUPPORT EMPLOYER WORKSITE PROGRAMS SAID SUSAN SEIDLER DIRECTOR OF WORKSITE HEALTH PROMOTION FOR THE WASHINGTON BUSINESS GROUP ON HEALTH A COALITION MEMBER THAT REPRESENTS MORE THAN 200 MAJOR US COMPANIES ON HEALTH POLICY ISSUES THE CLINTON ADMINISTRATION HAS PROMISED GENEROUS COVERAGE FOR SOME PREVENTIVE SERVICES AND SAYS HEALTH PROVIDERS WILL BE EXPECTED TO STRESS HEALTH MAINTENANCE IN THE SERVICES PROVIDED TO CONSUMERS 9309100084 930910 JUDGE SETS ASIDE DAMAGES IMPOSED ON TEXACO UNITS BY CON PSARRAS SPECIAL TO THE WALL STREET JOURNAL SALT LAKE CITY A STATE COURT JUDGE EFFECTIVELY SET ASIDE A JURY VERDICT AWARDING A TINY UTAH GOLD MINING COMPANY DAMAGES OF 4042 MILLION AGAINST TWO UNITS OF TEXACO INC THE JURY LAST WEEK HAD FOUND IN FAVOR OF GOLD STANDARD INC SALT LAKE CITY THE MINING COMPANY ALLEGED THAT GETTY OIL CO AND GETTY MINING CO HAD DEFRAUDED IT OUT OF PARTNERSHIP INTERESTS IN THE MERCUR GOLD MINE LOCATED ABOUT 90 MILES WEST OF SALT LAKE CITY THE JURY AWARDED COMPENSATORY DAMAGES OF 1542 MILLION FOR FRAUD AND PUNITIVE DAMAGES OF 250 MILLION JUDGE FRANK G NOEL YESTERDAY GRANTED A MOTION MADE DURING TRIAL BY GETTY OIL LAWYERS SEEKING A DIRECTED VERDICT IN FAVOR OF GETTY THE LAWYERS HAD ARGUED THAT GOLD STANDARD FAILED TO PROVE THAT FRAUD WAS COMMITTED DURING THE TRIAL JUDGE NOEL TOOK THE MATTER UNDER ADVISEMENT AND ALLOWED PROCEEDINGS TO CONTINUE IN GRANTING THE MOTION THE JUDGE RULED THAT THE CASE SHOULD NEVER HAVE GONE TO THE JURY FOR DELIBERATIONS JAMES S LOWRIE A LAWYER FOR GOLD STANDARD CHARGED THAT THE JUDGE USURPED THE ROLE OF THE JURY ADDING THAT THE COMPANY INTENDS TO APPEAL STEPHEN G CROCKETT A LAWYER FOR GETTY OIL SAID THE JUDGE CORRECTLY INTERPRETED FACTS WHICH THE JURY MISCONSTRUED WHAT REALLY HAPPENED IS GETTY LEANED OVER BACKWARDS TO HELP GOLD STANDARD MR CROCKETT ADDED THIS LAWSUIT IS JUST A RESULT OF WHAT THEY DID TO TRY TO HELP THEM AND WHAT THE JUDGE DID IS RIGHT THE RULING WHICH WAS MADE AFTER THE CLOSE OF TRADING COULD HAVE A BIG IMPACT ON GOLD STANDARD'S STOCK ON TUESDAY THE FIRST TRADING DAY AFTER LAST WEEK'S JURY AWARD GOLD STANDARD'S SHARES MORE THAN DOUBLED TO CLOSE AT 3375 UP 206 IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY'S STOCK CLOSED YESTERDAY AT 306 UP 1875 CENTS TEXACO'S STOCK MEANWHILE WASN'T MUCH AFFECTED BY THE JURY VERDICT LAST WEEK CLOSING AT 65125 DOWN 625 CENTS ON THE NEW YORK STOCK EXCHANGE STOCK OF THE OIL COMPANY BASED IN WHITE PLAINS NY CLOSED YESTERDAY AT 6450 DOWN 50 CENTS 9309100083 930910 ECONOMY US SURVEY FINDS BUSINESSES RAISING THEIR ESTIMATES OF '93 CAPITAL SPENDING BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN BUSINESSES ARE GENERALLY MORE OPTIMISTIC ABOUT 1993 CAPITAL SPENDING THAN THEY WERE JUST THREE MONTHS AGO A COMMERCE DEPARTMENT SURVEY CONDUCTED IN JULY AND EARLY AUGUST FOUND THAT COMPANIES EXPECT TO INCREASE SPENDING ON PLANT AND EQUIPMENT 71 THIS YEAR SIGNIFICANTLY MORE THAN THE 64 INCREASE THEY WERE EXPECTING THREE MONTHS EARLIER CAPITAL SPENDING CLIMBED A REVISED 46 IN 1992 THE PLANT AND EQUIPMENT SPENDING REPORT HOWEVER ISN'T ALWAYS ON THE MARK COMPANIES INCREASED ACTUAL SPENDING ON PLANT AND EQUIPMENT BY 28 IN THE SECOND QUARTER SUBSTANTIALLY LESS THAN THE 4 INCREASE THEY HAD ANTICIPATED FOR THAT QUARTER IN THE PREVIOUS SURVEY MANUFACTURERS SEEM TO HAVE GROWN MORE OPTIMISTIC IN THE LAST THREE MONTHS JUDGING FROM THE LATEST SURVEY THEY NOW PLAN TO INCREASE CAPITAL SPENDING FOR THE YEAR BY 34 IN THE PREVIOUS SURVEY THEY WERE PLANNING A 25 INCREASE PRODUCERS OF DURABLE GOODS ITEMS EXPECTED TO LAST THREE YEARS OR MORE NOW ESTIMATE A 104 INCREASE UP FROM A 56 FORECAST IN THE LAST SURVEY AUTO MAKERS PLAN A 395 INCREASE COMPARED WITH A 166 BOOST ANTICIPATED IN THE PREVIOUS QUARTER LARGE INCREASES ALSO ARE EXPECTED IN THE STONE CLAY GLASS AND ELECTRONIC MACHINERY INDUSTRIES BUT MANUFACTURERS OF NONDURABLE GOODS ARE PLANNING TO DECREASE THEIR SPENDING FROM 1992 LEVELS BY 12 IN THE LAST SURVEY THEY HAD ANTICIPATED A SMALL 02 RISE SPENDING PROJECTIONS FOR AIRCRAFT CONTINUE TO PLUMMET REFLECTING CUTBACKS IN DEFENSE SPENDING AND THE DOMESTIC AIRLINE BUSINESS THE LATEST PLANS CALL FOR A 221 DECREASE FROM LAST YEAR'S SPENDING OTHER LOSERS INCLUDE RUBBER PETROLEUM AND NONFERROUS METALS BUT OVERALL SOME ANALYSTS BELIEVE ACTUAL SPENDING ON CAPITAL EQUIPMENT MAY INCREASE EVEN MORE THAN FORECAST ACTUAL INVESTMENT MAY WELL EXCEED THE LEVELS CURRENTLY PLANNED BY BUSINESS SAID GORDON RICHARDS AN ECONOMIST AT THE NATIONAL ASSOCIATION OF MANUFACTURERS IN FACT EQUIPMENT SPENDING INCREASED AT AN ANNUALIZED RATE OF CLOSE TO 16 IN THE FIRST HALF OF THE YEAR AND THERE IS NO REASON TO BELIEVE THIS PACE WILL ABATE ANYTIME SOON ECONOMISTS ATTRIBUTE THE HEAVY CAPITAL SPENDING IN PART TO FAVORABLE FINANCIAL CONDITIONS INCLUDING LOW LONGTERM INTEREST RATES AND HIGH STOCK PRICES IN ADDITION US COMPANIES HAVE BEEN STRIVING TO INCREASE PRODUCTIVITY BY INVESTING IN COMPUTERS AND OTHER EFFICIENCYINCREASING MACHINERY SOME ECONOMISTS BELIEVE THAT ONE REASON FOR THE FAIRLY WEAK EMPLOYMENT GAINS IN THE CURRENT RECOVERY IS THE HEAVY INVESTMENT IN SUCH CAPITAL EQUIPMENT YESTERDAY THE LABOR DEPARTMENT REPORTED THAT PRODUCTIVITY IN THE NONFARM BUSINESS SECTOR DROPPED AT A 13 ANNUAL RATE IN THE SECOND QUARTER NOT THE 25 RATE ORIGINALLY REPORTED THE REPORT DIDN'T CHANGE ANALYSTS' VIEW THAT PRODUCTIVITY IS ON A LONGTERM UPWARD TREND BUT THEY CONCEDED THAT IT IS SOMETHING TO KEEP AN EYE ON THE INCREASE IN UNIT LABOR COSTS WAS REVISED TO 28 IN THE SECOND QUARTER FROM 42 SEPARATELY THE LABOR DEPARTMENT SAID INITIAL UNEMPLOYMENT CLAIMS FELL TO 316000 IN THE WEEK ENDED SEPT 4 FROM 326000 THE PREVIOUS WEEK THAT LEFT THEM AT THEIR LOWEST LEVEL SINCE JUNE 1989 THE FOURWEEK MOVING AVERAGE OF CLAIMS A BETTER INDICATOR OF LABOR MARKET CONDITIONS FELL TO A FOURYEAR LOW OF 324250 FROM 328000 SEPARATELY THE COMMERCE DEPARTMENT RELEASED REVISED ESTIMATES OF ITS FIXEDWEIGHTED PRICE INDEXES THEY SHOW THAT INFLATION HAS BEEN SLIGHTLY HIGHER OVER THE PAST THREE YEARS THAN PREVIOUSLY THOUGHT ALTHOUGH THEY DON'T CHANGE THE PERCEPTION THAT INFLATION HAS BEEN BEEN MODERATING IN THE SECOND QUARTER THE INDEX ROSE AT A 28 ANNUAL RATE NOT THE 26 RATE PREVIOUSLY REPORTED IN 1992 THE INDEX ROSE 33 NOT 29 IN 1990 IT ROSE 41 INSTEAD OF THE 4 REPORTED THE 1990 INDEX WAS 46 UNCHANGED THE INDEX IS CONSIDERED ONE OF THE BEST MEASURES OF INFLATION BECAUSE IT INCLUDES THE COSTS OF A FIXED AMOUNT OF GOODS AND SERVICES THAT COVER THE WHOLE ECONOMY 9309100082 930910 LEVITT OPPOSES BROADER RULES ON MUNICIPALS SEC CHIEF SAYS CONGRESS SHOULD GIVE REVISIONS A CHANCE BEFORE ACTING BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PROPOSED REGULATORY REVISIONS FOR THE MUNICIPAL SECURITIES MARKET SHOULD BE GIVEN TIME TO WORK BEFORE CONGRESS MANDATES BROADER CHANGES SAID ARTHUR LEVITT CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION BUT MR LEVITT SPEAKING BEFORE THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE SAID HE FAVORS IMMEDIATE LEGISLATION REQUIRING MORE FINANCIAL DATA ABOUT TAXFREE SECURITIES THAT ARE USED TO FINANCE SPECIFIC INDUSTRIAL PROJECTS SUCH AS NURSING HOMES OR SPORTS FACILITIES THESE SOCALLED CONDUIT BONDS ARE THE FORM OF MUNICIPAL SECURITIES THAT MOST CLOSELY RESEMBLE CORPORATE SECURITIES BECAUSE THEY TYPICALLY FINANCE PRIVATE ENTERPRISES AS WITH ALL MUNICIPAL BONDS ISSUERS OF CONDUIT BONDS AREN'T REQUIRED TO PROVIDE FINANCIAL DATA PRIOR TO OR AFTER SALES TO INVESTORS AND THAT HAS SHIELDED THE QUESTIONABLE NATURE OF SEVERAL CONDUIT BONDFINANCED PROJECTS FROM INVESTORS ALLEGATIONS OF INADEQUATE DISCLOSURE IN CONDUIT BOND ISSUES ARE TOO COMMON TO DISREGARD MR LEVITT SAID THE SEC WANTS LEGISLATION THAT WOULD REQUIRE ISSUERS OF CONDUIT BONDS TO REGISTER THE SECURITIES WITH THE AGENCY AND PROVIDE PERIODIC UPDATES OF FINANCIAL DATAREQUIREMENTS SIMILAR TO THOSE FOR PUBLICLY TRADED SECURITIES THE PUBLIC SECURITIES ASSOCIATION THE TRADE GROUP FOR MUNICIPAL BOND UNDERWRITERS ESTIMATES THAT A REGISTRATION REQUIREMENT WOULD HAVE AFFECTED ABOUT 658 BILLION IN CONDUIT ISSUES LAST YEAR AND ABOUT 415 BILLION IN THE FIRST SIX MONTHS OF THIS YEAR THE PSA SAID THE FIGURES ARE LARGER THAN NORMAL FOR 1992 AND 1993 BECAUSE ISSUERS ARE TAKING ADVANTAGE OF LOW INTEREST RATES TO REFUND OLD ISSUES MR LEVITT WAS LESS INSISTENT ON THE NEED FOR LEGISLATION REGARDING THE BULK OF THE 12 TRILLION MUNICIPAL SECURITIES MARKET INSTEAD HE SAID HE WANTS TO SEE WHETHER REGULATORY PROPOSALS AND THE THREAT OF CONGRESSIONAL ACTION WILL PROMPT ISSUERS TO BE MORE FORTHCOMING WITH FINANCIAL DATA AND ENCOURAGE BOND UNDERWRITERS AND OTHER PROFESSIONALS TO STOP IMPROPER POLITICAL CONTRIBUTIONS IN THAT VEIN MR LEVITT ANNOUNCED THAT THE SEC WILL EXAMINE THE SELECTION OF UNDERWRITING SYNDICATES BY MUNICIPAL BOND ISSUERS THE PRACTICE DIFFERS STARKLY FROM CORPORATE FUND RAISING IN WHICH COMPANIES TYPICALLY SELECT THE MANAGING UNDERWRITER AND ALLOW THAT UNDERWRITER TO PUT TOGETHER THE SYNDICATE MR LEVITT SAID THE MUNICIPAL SECURITIES PRACTICE APPEARS TO GIVE ISSUERS TOO MUCH CONTROL OVER THE FLOW OF FUNDS AND LEAVES THEM OPEN TO UNDUE INFLUENCE BY POLITICAL CONTRIBUTIONS MR LEVITT'S RELUCTANCE TO CALL FOR CONGRESSIONAL ACTION ON BROADER MUNICIPALBOND REVISIONS WAS GREETED WITH SKEPTICISM FROM SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D MASS WHO SAID HE IS UNCONVINCED THAT REGULATORS WILL BE ABLE TO FORCE CHANGES IN THE LEASTREGULATED OF ALL FINANCIAL MARKETS WE'RE GOING TO CONTINUE TO CAST AN ARCHED EYEBROW TOWARD THIS INITIATIVE REP MARKEY SAID I THINK THERE IS A VERY HIGH PROBABILITY THAT THIS SUBCOMMITTEE WILL BE LEGISLATING IN THIS AREA 9309100081 930910 WHO'S NEWS BORDEN NAMES MORRIS TO NEW STRATEGY POST NEW YORK BORDEN INC BROUGHT IN ANOTHER PACKAGED FOOD INDUSTRY VETERAN AS IT CONTINUES TO ADJUST ITS MANAGEMENT STRUCTURE NAMING GEORGE P MORRIS TO THE NEW POSITION OF VICE PRESIDENT FOR STRATEGY AND FINANCE FOR ITS WORLDWIDE FOOD BUSINESS MR MORRIS 49 YEARS OLD HAD BEEN VICE PRESIDENT AND GROUP EXECUTIVE OF MAXWELL HOUSE COFFEE CO PART OF THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS HE ALSO HAD SERVED AS CONTROLLER OF GENERAL FOODS USA MR MORRIS WILL REPORT TO ERVIN R SHAMES BORDEN'S NEW PRESIDENT AND CHIEF OPERATING OFFICER ON STRATEGY MATTERS AND TO LAWRENCE O DOZA BORDEN'S CHIEF FINANCIAL OFFICER ON CONTROLLER FUNCTIONS A SPOKESMAN SAID EARLIER THIS WEEK BORDEN HIRED ROBERT W ALLEN FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OF BOLSWESSANEN USA DAIRIES TO HEAD ITS TROUBLED US DAIRY OPERATIONS 9309100080 930910 BUSINESS BRIEF REEBOK INTERNATIONAL LTD ELLESSE UNIT TO BE SOLD TO A COUPLE FROM FLORIDA REEBOK INTERNATIONAL LTD SAID IT AGREED TO SELL ELLESSE USA INC A FOOTWEAR AND APPAREL UNIT TO A COUPLE FROM FLORIDA THE COUPLE HOMER AND CAROLE ALTICE WERE PREVIOUSLY NORTH AMERICAN LICENSEES FOR FILA FOOTWEAR THEY COULD NOT BE REACHED FOR COMMENT NO PRICE WAS DISCLOSED FOR THE SALE OF ELLESSE A MAKER OF ATHLETIC SHOES AND HIGHPRICED TENNIS AND SKI CLOTHING WHICH HAD 1992 REVENUE OF 34 MILLION THE SALE IS PART OF A RESTRUCTURING THAT THE STOUGHTON MASS FOOTWEAR AND APPAREL GIANT ANNOUNCED IN DECEMBER 1992 WHEN IT SAID IT PLANNED TO SELL ELLESSE AND BOSTON WHALER INC ITS BOAT MANUFACTURING SUBSIDIARY BOTH UNITS WERE UNPROFITABLE IN 1992 REEBOK SAID BOSTON WHALER WITH REVENUE OF 45 MILLION LAST YEAR WAS SOLD FOR AN UNDISCLOSED SUM IN JULY TO MCANDREWS & FORBES HOLDINGS INC A CLOSELY HELD HOLDING COMPANY BASED IN NEW YORK 9309100077 930910 BUSINESS BRIEF SMITH INTERNATIONAL INC SETTLEMENT OF SUIT TO RESULT IN CHARGE OF 195 MILLION SMITH INTERNATIONAL INC SAID IT WILL RECORD A ONETIME CHARGE OF 195 MILLION IN THE THIRD QUARTER TO COVER THE COST OF SETTLING A PRICEFIXING LAWSUIT THE HOUSTONBASED OILSERVICE COMPANY WAS SUED IN A CLASS ACTION IN WHICH BUYERS OF CERTAIN KINDS OF OILDRILLING BITS ALLEGED THAT SMITH CONSPIRED WITH OTHER MANUFACTURERS TO FIX PRICES OTHER DRILLBIT MAKERS HAVE ALREADY MADE SETTLEMENTS A SMITH SPOKESMAN SAID THE COMPANY WAS CONFIDENT IT WOULD HAVE WON THE SUIT BUT HE ADDED THAT A TRIAL WAS APPROACHING AND SMITH DIDN'T THINK THAT TRYING THE CASE WAS WORTH THE RISK IN THE SECOND QUARTER SMITH HAD NET INCOME OF 27 MILLION OR SIX CENTS A SHARE ON REVENUE OF 527 MILLION 9309100076 930910 BUSINESS BRIEF INTERNATIONAL LEASE FINANCE CORP FIRM LEASES 14 JETS VALUED AT 673 MILLION TO 10 AIRLINES INTERNATIONAL LEASE FINANCE CORP SAID IT LEASED 14 JETS TO 10 AIRLINES TERMS OF THE LEASES WEREN'T DISCLOSED THE 14 LEASED PLANES HAVE A MARKET VALUE OF ABOUT 673 MILLION ACCORDING TO THE COMPANY WHICH IS BASED IN CENTURY CITY CALIF INTERNATIONAL LEASE FINANCE LEASES COMMERCIAL JETS TO AIRLINES AROUND THE WORLD AND HAS A PORTFOLIO OF ABOUT 250 JET AIRCRAFT VALUED AT MORE THAN 8 BILLION INTERNATIONAL LEASE FINANCE A UNIT OF AMERICAN INTERNATIONAL GROUP INC NEW YORK LEASED PLANES TO THE FOLLOWING AIRLINES AIR EUROPA PALMA DE MALLORCA SPAIN BRAATHENS SAFF OSLO NORWAY CARNIVAL AIR LINES DANIA FLA CATHAY PACIFIC AIRLINES HONG KONG CHINA SOUTHERN AIRLINES GUANGZHOU CHINA DRAGONAIR HONG KONG GUYANA AIRWAYS GEORGETOWN GUYANA MORRIS AIR SALT LAKE CITY UTAH NORTH AMERICAN AIRLINES NEW YORK AND WUHAN AIRLINES WUHAN CHINA 9309100075 930910 INTERNATIONAL BRIEF NEC CORP MORE THAN 1000 ENGINEERS TO BE TRANSFERRED TO SALES NEC CORP IS RELOCATING MORE THAN 1000 OF ITS SYSTEM ENGINEERS ENGAGED IN SOFTWARE DEVELOPMENT FOR LARGESCALE COMPUTERS AND MAKING THEM SALES PEOPLE UNDER THE FIVEYEAR PROGRAM THE WORKERS WILL BE MOVED TO SALES DIVISIONS FOR WORKSTATIONS AND PERSONAL COMPUTERS NEC OFFICIALS SAID AMID THE DOWNSIZING TREND IN THE COMPUTER INDUSTRY THERE IS AN EXCESS OF SOFTWARE DEVELOPERS FOR LARGE COMPUTER COMPANIES THEY SAID NEC HAS ALREADY REASSIGNED ABOUT 300 SYSTEM ENGINEERS INCLUDING 100 AT ITS 13 SOFTWARE SUBSIDIARIES TO SALES DIVISIONS IT PLANS TO TRANSFER 800 MORE WORKERS AT ITS SUBSIDIARIES TO SALES SECTIONS OVER THE FIVE YEARS TOKYOBASED NEC HAD 10500 SYSTEM ENGINEERS FOR LARGE COMPUTERS INCLUDING 8000 AT ITS GROUP SUBSIDIARIES 9309100074 930910 RX FOR SALES MANAGED HEALTH CARE JEOPARDIZES OUTLOOK FOR DRUG DETAILERS' PHARMACEUTICAL MARKETING DEMANDS NEW STRATEGIES COSTS OVER CAMARADERIE NO FREE PENS PADS OR PILLS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF LADD REYNOLDS IS ITCHING TO DO BUSINESS AS HE PULLS HIS BLACK THUNDERBIRD INTO THE PARKING LOT OF KAISER PERMANENTE'S HOSPITAL MR REYNOLDS IS A TOP DRUG SALESMAN FOR GLAXO HOLDINGS PLC AND HIS CAR TRUNK IS PACKED WITH CARGO THERE ARE SAMPLES OF ASTHMA MEDICINE VIVID YELLOW KITS THAT SHOW OFF A NEW MIGRAINE CURE AND SCIENTIFIC STUDIES HERALDING GLAXO'S ULCER DRUG BUT THE 29YEAROLD MR REYNOLDS DOES NOT GET MUCH OF A WELCOME WHEN HE ENTERS THE HOSPITAL HE IS HANDED AN UNSIGHTLY VENDOR BADGE AND SENT OFF TO A DINGY BASEMENT HE SHARES THE HALLWAY WITH AN UNSHAVEN CONSTRUCTION WORKER WIELDING A NOISY POWER DRILL GAMELY MR REYNOLDS SETS UP A SMALL DISPLAY TABLE AND TRIES TO CHAT UP ANY DOCTOR WHO PASSES BY IT ISN'T EASY ONE DOCTOR SCOFFS AT MR REYNOLDS' ULCER STUDY OUT OF DATE HE SNAPS AND WALKS OFF ANOTHER PHYSICIAN REFUSES TO HEAR A WORD OF THE HEADACHE PITCH UNTIL MR REYNOLDS ASSURES HIM THAT GLAXO'S DRUG IS ON KAISER'S LIST OF APPROVED MEDICATIONS AFTER AN HOUR'S WORK MR REYNOLDS COMES AWAY WITH PERHAPS FOUR USEFUL CONTACTS AND 20 SNUBS SUCH ARE THE NEW REALITIES OF PHARMACEUTICAL MARKETING POWERFUL MANAGEDHEALTHCARE NETWORKS LIKE KAISER ARE SHUNTING DRUG SALES REPRESENTATIVES ASIDE AS PART OF A CRUSADE TO RESTRAIN PHARMACEUTICAL COSTS DRUG COMPANIES ARE SCRAMBLING FOR NEW WAYS TO SELL TO THESE MANAGEDCARE GIANTS BUT THEY ALSO ARE STARTING TO REASSESS THE VALUE OF MAINTAINING BIG SALES FORCES JUST A FEW YEARS AGO BEING A DRUG COMPANY REPRESENTATIVE WAS ONE OF THE MORE PLEASANT SALES JOBS AROUND DETAILERS DROPPED BY TO DISCUSS THEIR PRODUCTS WITH THE PRIVATE INDEPENDENT PHYSICIANS WHO PRESCRIBED MOST OF AMERICA'S PILLS DETAILERS WERE WELCOMED FOR THEIR KNOWLEDGE OF NEW DRUGS AND MEDICATIONS AS WELL AS FOR THEIR SUPPLIES OF FREE SAMPLES AND SUCH PROMOTIONAL GOODIES AS PRESCRIPTION PADS PENS AND SPORTS TICKETS THEY ENJOYED A STEADY FLOW OF NEW PRODUCTS AND GOOD RAPPORT WITH DOCTORS/CUSTOMERS WHO SELDOM NEEDED TO BE CONCERNED WITH THE COST OF MEDICINE THEY PRESCRIBED NOW THE RULES ARE CHANGING FAST MORE DOCTORS ARE JOINING MANAGEDCARE ORGANIZATIONS WHICH SEEK TO HOLD DOWN MEDICAL COSTS FOR LARGE GROUPS OF PATIENTS THESE ORGANIZATIONS FROWN ON DRUGCOMPANY HANDOUTS CONCERNED THEY WILL UNDULY SWAY DOCTORS' PRESCRIBING PATTERNS IN FACT MANY MANAGEDCARE GROUPS ARE SETTING UP THEIR OWN PHARMACY COMMITTEES WHICH ARE MEANT TO SUPPLANT DRUGCOMPANY DETAILERS ENTIRELY AND PROVIDE DOCTORS WITH IMPARTIAL ADVICE ON WHAT MEDICATIONS ARE MOST COSTEFFECTIVE COPING WITH THIS MANAGEDCARE ONSLAUGHT HAS BECOME A LEADING STRATEGIC CHALLENGE FOR PHARMACEUTICAL COMPANIES ALL TOLD THE DRUG INDUSTRY SPENDS ABOUT 20 OF TOTAL REVENUE THE EQUIVALENT OF 12 BILLION IN 1992 ON SALES AND MARKETING MOST OF THAT MONEY GOES FOR ARMIES OF SAMPLETOTING REPRESENTATIVES WITH SALARIES AND BONUSES SUCCESSFUL DETAILERS TOPPED 60000 A YEAR IN EARNINGS AND SALES MANAGERS WHO SUPERVISE FIVE TO 50 DETAILERS CAN EARN MORE THAN 100000 BUT THEIR FUTURE IS INCREASINGLY CLOUDED THIS SUMMER THE DRUG INDUSTRY'S MOSTPROMINENT EXECUTIVE MERCK & CO CHAIRMAN ROY VAGELOS DECLARED WE MUST TAKE BOLD ACTION NOW TO BECOME A LEADER IN THE EMERGING MANAGEDCARE ERA TO DO SO MERCK AGREED TO BUY ONE OF THE LARGEST MANAGEDCARE PHARMACY COMPANIES MEDCO CONTAINMENT SERVICES INC FOR 6 BILLION OTHER DRUG COMPANIES ARE TRYING DIFFERENT STRATEGIES INCLUDING CUTTING THEIR SALES FORCES AND OFFERING UNPRECEDENTED PRICE DISCOUNTS IN AN EFFORT TO WIN BETTER STANDING ON A MANAGEDCARE GROUP'S LIST OF PREFERRED DRUGS KNOWN AS FORMULARIES IT ISN'T CLEAR YET WHICH APPROACH IF ANY WILL WORK BEST BUT THERE IS WIDESPREAD AGREEMENT THAT AS ONE DRUG COMPANY EXECUTIVE PUTS IT WE CAN'T JUST WAIT FOR MANAGED CARE TO GO AWAY MEANWHILE GLAXO HAS EMBARKED ON ONE OF THE INDUSTRY'S MORE INTENSE SALES EFFORTS TO MAKE SENSE OF THE NEW ENVIRONMENT WE RECOGNIZED IN 1986 THAT MANAGED CARE WAS STARTING TO AFFECT THE AVAILABILITY OF OUR PRODUCTS SAYS STEVE STEFANO A MARKETING VICE PRESIDENT AT GLAXO'S US UNIT WE DEVELOPED A SPECIAL 45PERSON SALES TEAM TO DEAL WITH IT GLAXO'S SALES SQUAD FACES SOME OF ITS TOUGHEST TESTS WHEN DEALING WITH AMERICA'S LARGEST MANAGEDCARE ORGANIZATION KAISER BASED IN OAKLAND CALIF KAISER PROVIDES HEALTH COVERAGE FOR 64 MILLION AMERICANS THROUGH HOSPITALS PHARMACIES AND HEALTH MAINTENANCE ORGANIZATIONS OF PHYSICIANS AND STAFF WHO WORK DIRECTLY FOR KAISER THIS YEAR KAISER PLANS TO BUY MORE THAN 700 MILLION OF PHARMACEUTICALS RANKING IT AMONG THE DRUG INDUSTRY'S TOP FIVE CUSTOMERS AND KAISER'S FRUGAL WAYS OFTEN ARE CITED BY HEALTHCARE REFORMERS AS A POSSIBLE MODEL FOR THE REST OF THE US WITHIN KAISER SOME TOP ADMINISTRATORS DON'T HIDE THEIR DISDAIN FOR DRUGCOMPANY SALES REPRESENTATIVES WITH VERY FEW EXCEPTIONS THERE IS NO LEGITIMACY TO DRUG DETAILING SAYS FRANCIS J CROSSON JR KAISER'S ASSOCIATE MEDICAL DIRECTOR FOR NORTHERN CALIFORNIA IT'S NOT AN OBJECTIVE EDUCATIONAL PROCESS IT'S SELLING THE COSTS ARE JUST BEING PASSED ON TO LITTLE OLD LADIES WHO NEED THEIR HYPERTENSION MEDICINE THE WHOLE PROCESS IS OFFENSIVE AND WE HAVE NO INTEREST IN PROMOTING IT KAISER BEGAN CRACKING DOWN ON DETAILERS ABOUT FIVE YEARS AGO AND NOW SUBJECTS THEM TO 32 RULES ALL DESIGNED TO BLOCK OVERLY AGGRESSIVE MARKETING PROMOTING ANY MEDICINE THAT ISN'T ON THE KAISER FORMULARY IS FORBIDDEN DITTO FOR CRUISING KAISER HALLS LOOKING FOR DOCTORS TO CHAT WITH DETAILERS CAN'T VISIT A KAISER FACILITY WITHOUT AN APPOINTMENT AND AT SOME SITES THEY CAN'T HAND OUT ANY LEAFLETS THAT KAISER DEEMS TOO GLIB OR MADISON AVENUE LAST WINTER GLAXO SENT PERSONALIZED PRESCRIPTION PADS TO THOUSANDS OF DOCTORS ACROSS THE US WITH IMITREX THE NAME OF A GLAXO MIGRAINE CURE PRINTED ON THE FRONT THAT'S ORDINARY MARKETING IN MOST PLACES BUT A DIRECT VIOLATION OF KAISER RULE NO 31 NO PRESCRIPTION PADS PROMOTING SPECIFIC DRUGS PADS WERE DELIVERED TO SEVERAL KAISER NEUROLOGISTS IN REDWOOD CITY CALIF AND THEY TURNED GLAXO IN THE EMBARRASSED DRUG COMPANY BLAMED AN OUTSIDE VENDOR FOR THE MAILING MIXUP AND SENT EACH KAISER DOCTOR AN APOLOGY AND OFFERED TO DESTROY THE OFFENDING PRESCRIPTION PADS AFTER ALL TWO RULES VIOLATIONS WITHIN A YEAR PUT A DRUG COMPANY ON PROBATION THREE VIOLATIONS AND ITS REPRESENTATIVES ARE BARRED FROM KAISER PREMISES FOR SIX MONTHS WE'VE PROBABLY EXPELLED 10 OR 15 DRUG COMPANIES OVER THE YEARS SAYS KAISER'S DR CROSSON AND ALMOST EVERYONE IS CARRYING A VIOLATION OR TWO A WEEK IN THE FIELD WITH MR REYNOLDS AND HIS KAISER CUSTOMERS SHOWS HOW TOUGH IT IS FOR DRUG SALES REPRESENTATIVES TO THRIVE IN SUCH A STRICT MANAGEDCARE SETTING EVERY NOW AND THEN MR REYNOLDS AND HIS GLAXO BOSSES MAKE HEADWAY EITHER BY LOWKEY EDUCATIONAL PROMOTION OF TOP GLAXO DRUGS OR BY PRICE CUTS ON OTHER MEDICINES MORE OFTEN HOWEVER KAISER'S BARRIERS PREVAIL YOU LEARN TO COPE WITH AN AWFUL LOT OF REJECTION SAYS MR REYNOLDS AN AMIABLE ILLINOIS NATIVE WHO COVERS FOUR LARGE KAISER FACILITIES JUST SOUTH OF SAN FRANCISCO TAKE ULCER MEDICINE ALMOST EVERYWHERE ELSE GLAXO'S ZANTAC IS KING GLAXO SOLD 32 BILLION OF ZANTAC WORLDWIDE IN 1992 MAKING IT THE BESTSELLING DRUG ON EARTH ACCORDING TO WALL STREET ANALYSTS IN THE US ZANTAC COMMANDS ABOUT A 45 MARKET SHARE KEEPING IT WELL AHEAD OF THREE RIVAL COMPANIES' ULCER MEDICINES ZANTAC'S MAIN EDGE SOME DOCTORS BELIEVE IT IS LESS LIKELY THAN RIVALS' PRODUCTS TO INTERACT BADLY WITH OTHER MEDICINES BUT KAISER CONTENDS THAT FOR MOST PATIENTS ZANTAC LACKS ANY CLINICAL EDGE OVER TAGAMET MADE BY SMITHKLINE BEECHAM PLC BECAUSE KAISER CAN BUY TAGAMET AT 18 BELOW ZANTAC'S PRICE FOR ITS DISPENSARIES THE MANAGEDCARE GIANT URGES ITS DOCTORS TO PRESCRIBE THE CHEAPER DRUG WHEN APPROPRIATE AMONG KAISER'S WAYS OF GETTING THAT MESSAGE ACROSS DISTRIBUTING TO ITS DOCTORS THOUSANDS OF LIMEGREEN PENS EMBOSSED WITH TAGAMET AND THE KAISER LOGO SINCE THE PROTAGAMET LOBBYING CAMPAIGN BEGAN IN 1988 ZANTAC'S SHARE OF THE KAISER MARKET HAS TUMBLED TO JUST 35 ACCORDING TO TRACIE PAIVA WHO OVERSEES KAISER'S OWN DRUGEDUCATION PROGRAMS KAISER'S FAVORITISM TOWARD A COMPETITOR IRKS MR REYNOLDS YET HE IS POWERLESS TO STOP IT OR EVEN DEBATE IT WE REGARD OURSELVES AS THE DRUGINFORMATION SOURCE SAYS MARY WHITE A DRUGEDUCATION COORDINATOR AT KAISER'S REDWOOD CITY CALIF HOSPITAL SHE PUTS TOGETHER HER OWN EDUCATIONAL PACKETS FOR DOCTORS AS WELL AS COST AND EFFECTIVENESS SURVEYS THOSE ARE MORE OBJECTIVE THAN WHAT DETAILERS PROVIDE AND ARE MORE TRUSTED BY DOCTORS SHE CONTENDS FOR THE PAST FEW YEARS KAISER HAS INVITED ITS DOCTORS TO DECLARE THEMSELVES ENTIRELY OFFLIMITS TO DRUG REPRESENTATIVES THAT'S WHAT 92 OF THE APPROXIMATELY 250 DOCTORS AT KAISER'S SAN JOSE HOSPITAL HAVE DONE THEIR NAMES APPEAR ON A DON'T CALL LIST THAT DETAILERS SEE EACH TIME THEY SIGN INTO THE FACILITY THESE PHYSICIANS GET ALL THEIR DRUG DATA FROM JOURNALS SEMINARS AND KAISER'S OWN STAFF DETAILERS VIOLATE KAISER POLICY IF THEY MAKE ANY EFFORT TO CONTACT THESE DOCTORS SOME PHARMACEUTICAL COMPANIES FIND THESE BARRIERS TOO DAUNTING TO FACE AT SAN JOSE KAISER MANAGER CHRISTOPHER OLIVA TELLS OF A VISIT FROM A NEW DRUG REPRESENTATIVE WHOSE TERRITORY INCLUDED BOTH KAISER AND HUNDREDS OF PRIVATEPRACTICE DOCTORS FROM MONTEREY TO FRESNO THE DETAILER WANTED TIPS ON HOW TO BE EFFECTIVE AT KAISER MR OLIVA'S ADVICE TO HER DON'T WASTE YOUR TIME HERE BUT GLAXO DOESN'T GIVE UP EASILY WHEN MR REYNOLDS VISITS KAISER HOSPITALS HE FINDS SOME DOCTORS AREN'T NEARLY AS HOSTILE TOWARD DRUG DETAILING AS HE HAS BEEN LED TO BELIEVE AT SANTA CLARA FOR INSTANCE ONE KAISER DOCTOR WHISPERS TO HIM YOU'RE MAKING INROADS ON ZANTAC WE'RE DEFINITELY USING MORE THAN WE USED TO AND WHILE MANY DOCTORS WON'T LET MR REYNOLDS INTO THEIR OFFICES HE SOMETIMES STILL CAN CATCH THEIR ATTENTION BY BRINGING IN A TOPFLIGHT SPEAKER THIS SPRING FOR EXAMPLE GLAXO PAID FOR A UNIVERSITY OF TEXAS RESEARCHER TO COME TO CALIFORNIA AND TALK ABOUT ANTINAUSEA DRUGS FOR CHEMOTHERAPY PATIENTS INCLUDING GLAXO'S POTENT ZOFRAN ONE OF KAISER'S TOP CANCER SPECIALISTS JOSEPH MASON ATTENDED THAT SESSION EVEN THOUGH HE USUALLY WON'T TALK TO GLAXO DR MASON FAULTS GLAXO FOR MAKING ZOFRAN OUTRAGEOUSLY EXPENSIVE IN ITS INJECTABLE FORM THE DRUG COSTS 4 PER MILLIGRAM OR AS MUCH AS 120 PER TREATMENT STILL DR MASON SAYS ZOFRAN IS UNQUESTIONABLY A MAJOR ADVANCE BECAUSE MANAGEDCARE ORGANIZATIONS LIKE KAISER ARE SO DETERMINED TO CONTROL COSTS THEY HAVE BEGUN THEIR OWN PROMOTIONS KAISER PROVIDES ITS DOCTORS WITH DESK CALENDARS FOR EXAMPLE THAT TOUT DOZENS OF LOWCOST MEDICINES INCLUDING GLAXO'S ANTIASTHMA DRUG BECONASE THAT PLUG IS WELCOME NEWS FOR GLAXO'S CORPORATE HEADQUARTERS WHICH AGREED SEVERAL YEARS AGO TO SELL BECONASE TO KAISER AT A DISCOUNT TO THE REGULAR PRICE GLAXO WAS ONE OF THE FIRST DRUG COMPANIES TO FIGURE OUT WHAT WE WANTED SAYS KAISER'S ACTING HEAD OF PHARMACY DALE KRAMER WE'RE REALLY ONLY INTERESTED IN THREE THINGS QUALITY PRICE AND SERVICE AND IF YOU AREN'T WILLING TO COMPETE ON PRICE WELL IT'S A COMPETITIVE MARKET OUT THERE KAISER'S OWN PROMOTIONS FURTHER REDUCE THE ROLE OF DETAILERS LIKE MR REYNOLDS IN THIS CASE KAISER ALREADY HAS DONE MUCH OF HIS JOB FOR HIM WITHIN PARTS OF KAISER HARDLINERS TALK ABOUT THE DAY WHEN DETAILERS WON'T BE ALLOWED TO VISIT AT ALL I COULD SEE IT HAPPENING WITHIN A FEW YEARS SAYS DAVID CAMPEN HEAD OF THE PHARMACY AND THERAPEUTICS COMMITTEE AT KAISER'S SANTA CLARA HOSPITAL IT'S NOT IN OUR INTERESTS TO ALLOW THEM TO DETAIL YET SOME MODERATES WITHIN KAISER DISAGREE THEY SAY DETAILERS PERFORM USEFUL SERVICES ESPECIALLY WHEN IT COMES TO LETTING THE WORLD KNOW ABOUT NEW DRUGS A LOT OF NEW DRUGS ARE VERY SOPHISTICATED AND HAVE NARROW APPLICATIONS OBSERVES KAISER'S MR KRAMER IS IT BETTER FOR OUR PEOPLE TO TRY TO LEARN ALL ABOUT THEM OR TO LET A COMPANY REP EXPLAIN THEM NEW PRODUCTS GENERATE THE BIGGEST BONUSES UNDER GLAXO'S PAY SCALE THEY ALSO BRING THE WARMEST EMOTIONAL REWARDS SAYS MR REYNOLDS JUST A FEW WEEKS AGO MR REYNOLDS SAYS HE WALKED INTO A KAISER HOSPITAL AND GOT A BIG HUG FROM A NURSE WHO HAD STARTED TAKING IMITREX AND FOUND THAT IT MADE HER MIGRAINES VANISH BECAUSE OF SUCH MOMENTS MR REYNOLDS SAYS HE'S CONVINCED HE MADE THE RIGHT CAREER CHOICE STILL HE GETS WISTFUL SOMETIMES WHEN HE REMEMBERS HIS PREVIOUS SALES TERRITORY COVERING SMALLTOWN DOCTORS IN SOUTHERN CALIFORNIA PRIVATE PRACTICES IT WAS EASY TO VISIT 12 DOCTORS A DAY AND THEY WERE GLAD TO SEE ME MR REYNOLDS RECALLS THEY'D GIVE ME 10 OR 15 MINUTES OF THEIR TIME AND THEN THEY'D INTRODUCE ME TO THEIR COLLEAGUES SOMETIMES I TELL MYSELF LADD YOU DIDN'T REALIZE HOW GOOD YOU HAD IT BACK THEN 9309100073 930910 BUSINESS BRIEF COMERICA INC FIRM AGREES TO SWAP SHARES IN PACIFIC WESTERN PURCHASE COMERICA INC EXPANDING ITS PRESENCE IN THE CALIFORNIA MARKET SAID IT AGREED TO ACQUIRE PACIFIC WESTERN BANCSHARES INC IN A STOCK SWAP VALUED AT 133 MILLION UNDER THE PROPOSED ACQUISITION PACIFIC WESTERN SHAREHOLDERS WILL RECEIVE 0358 COMERICA SHARE FOR EACH PACIFIC WESTERN COMMON SHARE A TOTAL OF 4585000 SHARES WILL BE ISSUED TO PACIFIC WESTERN SHAREHOLDERS COMERICA SAID PACIFIC WESTERN A HOLDING COMPANY WITH ASSETS OF 1 BILLION IS THE PARENT OF PACIFIC WESTERN BANK OF CALIFORNIA IT OPERATES 23 BRANCHES IN THAT STATE COMERICA BASED IN DETROIT OPERATES 11 COMERICA BANKCALIFORNIA BRANCHES IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY PACIFIC WESTERN SHARES CLOSED AT 9375 DOWN 125 OR 12 COMERICA SHARES CLOSED AT 28 DOWN 625 CENTS IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9309100072 930910 BUSINESS BRIEF REYNOLDS METALS CO SALE IS PLANNED OF INTEREST IN GOLD MINE IN AUSTRALIA REYNOLDS METALS CO SAID IT WILL PUT ON THE BLOCK ITS 40 INTEREST IN THE BODDINGTON GOLD MINE AUSTRALIA'S THIRDLARGEST GOLDMINING OPERATION REYNOLDS HAS RETAINED CHEMICAL BANK TO ASSIST IT A SPOKESMAN FOR THE RICHMOND VA COMPANY SAID IT WAS TRYING TO DETERMINE A VALUE FOR ITS INTEREST AND DECIDED TO SELL BECAUSE IT BELIEVES THIS IS THE IDEAL TIME TO MAXIMIZE OUR INVESTMENT THE SPOKESMAN DECLINED TO DISCLOSE THE MINE'S BOOK VALUE OR ITS REVENUE LOCATED NEAR PERTH THE BODDINGTON GOLD MINE HAS BEEN IN OPERATION SINCE 1987 AND LAST YEAR PRODUCED ABOUT 350000 OUNCES OF GOLD THE MINE IS OPERATED BY WORSLEY ALUMINA PTY LTD ON BEHALF OF FOUR JOINT VENTURE PARTNERS REYNOLDS BILLITON AUSTRALIA GOLD PTY LTD 30 NEWCREST MINING WA LTD 20 AND KOBE ALUMINA ASSOCIATES AUSTRALIA PTY LTD 10 9309100071 930910 BUSINESS BRIEF EL PASO ELECTRIC CO JUDGE DENIES COMPETING PROPOSAL FOR REORGANIZATION A US BANKRUPTCY COURT JUDGE DENIED A REQUEST BY SOUTHWESTERN PUBLIC SERVICE CO TO FILE A REORGANIZATION PLAN FOR EL PASO ELECTRIC CO A MOVE THAT PUTS EL PASO ELECTRIC CLOSER TO ITS GOAL OF BEING ACQUIRED BY CENTRAL & SOUTH WEST CORP JUDGE FRANK MONROE HAS ALREADY ACCEPTED DALLASBASED CENTRAL'S PLAN TO BUY EL PASO ELECTRIC FOR ABOUT 22 BILLION A SPOKESMAN FOR EL PASO ELECTRIC BASED IN EL PASO TEXAS SAID THE COMPANY WILL NOW BE ABLE TO SOLICIT VOTES ON THE PLAN FROM CREDITORS SHAREHOLDERS AND OTHERS WITHOUT THE DISTRACTION OF A COMPETING REORGANIZATION PLAN THE UTILITY FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN JANUARY 1992 OFFICIALS FROM SOUTHWESTERN BASED IN AMARILLO TEXAS COULDN'T BE REACHED TO COMMENT ON THE DECISION OR ON SOUTHWESTERN'S PLANS FOR ITS PROPOSAL TO ACQUIRE EL PASO ELECTRIC 9309100070 930910 GOLDSTAR TO FORM JOINT VENTURE SEOUL SOUTH KOREA'S GOLDSTAR CO SIGNED A CONTRACT WITH HONG KONG AND CHINESE COMPANIES TO FORM A JOINT VENTURE FOR THE PRODUCTION OF AUDIO UNITS IN GUANGDONG CHINA THE CONTRACT WAS SIGNED BETWEEN GOLDSTAR HONG KONG'S GREAT WALL CO AND CHINA'S TELECOMMUNICATION CO IN GUANGDONG A GOLDSTAR OFFICIAL SAID GOLDSTAR WILL OWN 65 OF THE VENTURE TO BE CAPITALIZED AT 9 MILLION WHILE GREAT WALL AND TELECOMMUNICATION WILL OWN 20 AND 15 RESPECTIVELY THE VENTURE SLATED FOR COMPLETION IN APRIL 1994 WILL HAVE AN ANNUAL CAPACITY OF ONE MILLION AUDIO UNITS SEPARATELY GOLDSTAR HAS TENTATIVELY AGREED TO SUPPLY COMBINATION TELEVISION/VCRS FOR JAPANESE ELECTRONICS MAKER SONY CORP CHOSUN ILBO SOUTH KOREA'S LEADING DAILY NEWSPAPER REPORTED GOLDSTAR OFFICIALS HOWEVER REFUSED TO COMMENT ON THE REPORT 9309100069 930910 ECONOMY GERMAN RATES ARE LOWERED BY CENTRAL BANK DISCOUNT LOMBARD MOVES SET OFF ROUND OF CUTS THROUGHOUT EUROPE BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANY'S CENTRAL BANK LOWERED ITS TWO KEY LENDING RATES TRIGGERING A ROUND OF INTERESTRATE CUTS THROUGHOUT EUROPE THE BUNDESBANK'S CUT IN ITS DISCOUNT AND LOMBARD RATES AND THE WAVE OF SUBSEQUENT REDUCTIONS IN OTHER COUNTRIES DEMONSTRATED THAT THE GERMAN CENTRAL BANK STILL RUNS EUROPEAN MONETARY POLICY DESPITE LAST MONTH'S LOOSENING OF THE SYSTEM THAT LINKS THE CURRENCIES OF MOST OF THE COUNTRIES IN THE EUROPEAN COMMUNITY WHILE THE RATE REDUCTIONS ARE WELCOME NEWS FOR GERMANY AND ITS NEIGHBORS THEY ARE PROBABLY TOO SMALL TO GIVE MUCH STIMULUS TO EUROPE'S RECESSIONHIT ECONOMIES IT ALSO REMAINS UNCERTAIN HOW QUICKLY THE CAUTIOUS BUNDESBANK WHICH IS ALWAYS WORRIED ABOUT GERMAN INFLATION WILL CUT ITS INTEREST RATES AGAIN NONETHELESS THE RATE CUTS WERE ALSO WELCOMED BY THE US GOVERNMENT AMERICAN OFFICIALS HOPE THAT LOWER EUROPEAN INTEREST RATES AND WHATEVER ECONOMIC STIMULUS THEY TRIGGER WILL INCREASE THE APPETITE FOR AMERICAN EXPORTS IN WASHINGTON DEPUTY TREASURY SECRETARY ROGER ALTMAN CALLED THE GERMAN RATE CUT POSITIVE THE BUNDESBANK'S RATE CUT YESTERDAY WAS ITS FIRST IN NINE WEEKS THE CENTRAL BANK LOWERED ITS DISCOUNT RATE TO 625 FROM 675 THE FIFTH REDUCTION THIS YEAR IN THE IMPORTANT RATE WHICH STOOD AT 825 AT THE END OF 1992 THE REDUCTIONS HAVE PROVIDED DOWNWARD SCOPE FOR GERMAN MONEY MARKETS AND COMMERCIAL LENDING RATES THE BUNDESBANK ALSO LOWERED ITS LOMBARD RATE TO 725 FROM 775 THE DISCOUNT FACILITY OFFERS BANKS A LIMITED AMOUNT OF INEXPENSIVE REFINANCING UNDER FIXED BORROWING QUOTAS WHILE BORROWING FROM THE LOMBARD FACILITY IS UNLIMITED THE LOMBARD RATE SERVES AS A CEILING FOR SHORTTERM MONEYMARKET RATES THE CUTS WERE QUICKLY FOLLOWED BY OTHER EUROPEAN CENTRAL BANKS WHICH CONTINUE TO KEEP THEIR CURRENCIES ALIGNED WITH THE MARK DESPITE THE DE FACTO SUSPENSION OF THE EUROPEAN EXCHANGE RATE MECHANISM FRANCE BELGIUM THE NETHERLANDS ITALY AND AUSTRIA ALL SEIZED THE CHANCE TO EASE CREDIT COSTS WITHOUT SHAKING THEIR CURRENCY PARITIES AGAINST THE MARK BUT EUROPEAN FINANCIAL MARKETS WERE LARGELY UNIMPRESSED THIS WAS PARTLY BECAUSE THE CUTS HAD BEEN WIDELY ANTICIPATED AND PARTLY BECAUSE MANY TRADERS EXPECT THAT FUTURE GERMAN RATE REDUCTIONS COULD BECOME INCREASINGLY RARE THE MARK ROSE AGAINST THE US DOLLAR AND MOST EUROPEAN CURRENCIES ON PERCEPTIONS THAT LOWER GERMAN RATES WOULD AID THE COUNTRY'S ECONOMIC RECOVERY MANY ECONOMISTS BELIEVE THAT QUICKER AND DEEPER CUTS WILL BE NEEDED TO HELP REVIVE EUROPEAN ECONOMIC GROWTH AND TURN AROUND AN AVERAGE 12 JOBLESS RATE AND AN EXPECTED ECONOMIC CONTRACTION IN THE EUROPEAN COMMUNITY THIS YEAR EUROPE'S EXPORT MARKETS REMAIN SLACK AND EUROPE NEEDS MORE THAN JUST INCREMENTAL CHIPS OFF THE COST OF CREDIT TO SPUR DOMESTIC DEMAND BY WAITING FOR THE BUNDESBANK LEAD OTHER EUROPEAN CENTRAL BANKS SHOWED AGAIN THAT THE MONETARY RESTRICTIONS OF THE OLD ERM LIVE ON UNLESS THE BUNDESBANK PICKS UP THE PACE THE RESULT COULD BE PROLONGED RECESSION THE GERMAN INSTITUTE FOR ECONOMIC RESEARCH IN BERLIN OR DIW ONE OF THE SIX THINK TANKS REGULARLY ADVISING THE BONN GOVERNMENT ON ECONOMIC POLICY ARGUES AGAINST THE BUNDESBANK GRADUALIST APPROACH INDUSTRY TENDS TO WAIT UNTIL RATES HIT BOTTOM BEFORE GEARING UP SPENDING ON NEW EQUIPMENT AND JOBS THE BUNDESBANK NEEDS TO GO DOWN BY A FULL PERCENTAGE POINT AT A TIME NOT BY QUARTERPOINTS AND HALFPOINTS SAYS DIW ECONOMIST GUSTAV HORN A BUNDESBANK STATEMENT ACCOMPANYING THE RATE REDUCTIONS SAID THE ACTIONS CONTINUE ITS POLICY OF GRADUAL EASING OF MONETARY POLICY IT CALLED THE STEP DEFENSIBLE BECAUSE THE EXPECTED BOOST TO MONEY SUPPLY FROM JULY'S EXCHANGE MARKET INTERVENTION ON BEHALF OF OTHER EUROPEAN CURRENCIES COULD BE SMALLER THAN EXPECTED THE BUNDESBANK ALSO SAID THAT LOWER INTEREST RATES WERE MADE POSSIBLE BY SIGNS OF SLOWING INFLATION AND A STRONG MARK WESTERN GERMAN ANNUAL INFLATION WAS STILL RUNNING AT 42 IN AUGUST FAR FROM THE BUNDESBANK'S 2 INFLATION TARGET BUT THE CENTRAL BANK SAID THE AUGUST YEARONYEAR RATE INCLUDES THE EFFECTS ON PRICES OF THE ONEPERCENTAGEPOINT INCREASE IN GERMANY'S VALUEADDED TAX ON RETAIL ITEMS LAST JANUARY WE ARE NOT OUT OF THE WOODS YET BUT IT LOOKS BETTER THAN BEFORE SAID A BUNDESBANK OFFICIAL THE BUNDESBANK ALSO ANNOUNCED A 67 FIXED INTEREST RATE ON ITS NEXT SECURITIES REPURCHASE AGREEMENT THE INSTRUMENT USED BY MANY CENTRAL BANKS TO STEER LIQUIDITY IN MONEY MARKETS DOWN ONLY 010 PERCENTAGE POINT FROM THE PREVIOUS 68 REPO RATE THE REDUCTION REFLECTED THE BANK'S DESIRE NOT TO BE SEEN AS LOWERING ITS SHIELD AGAINST INFLATION THIS CAUTION IS EXCESSIVE SAY MANY GERMAN ECONOMISTS IN LIGHT OF GERMANY'S ANEMIC ECONOMY WHICH IN BETTER TIMES HAS PROVIDED EUROPE WITH AN ENGINE FOR GROWTH 9309100068 930910 BUSINESS BRIEFS TAKECARE INC A HEALTHCARE MANAGEMENT COMPANY ACQUIRED COMPRECARE INC IN A STOCK AND CASH DEAL VALUED AT MORE THAN 100 MILLION SYRATECH CORP SIGNED AN AGREEMENT WITH MARTIN MARIETTA CORP TO BUY A WAREHOUSE AND DISTRIBUTION FACILITY IN GEDDES NY FUTURE NOW INC ACQUIRED BASICOMPUTER CORP AKRON OHIO FOR 12 MILLION THE TWO COMPANIES HAD SIGNED A DEFINITIVE AGREEMENT FOR THE ACQUISITION JULY 28 PILLOWTEX CORP A MAKER OF PILLOWS MATTRESS PADS AND DOWN COMFORTERS PURCHASED THE VOTING STOCK OF TENNESSEE WOOLEN MILLS A LEBANON TENN BLANKET MAKER PILLOWTEX PAID 133 MILLION FOR TENNESSEE WOOLEN WHICH HAS ANNUAL SALES OF ABOUT 25 MILLION CALIFORNIA BANCSHARES INC SIGNED A LETTER OF INTENT TO ACQUIRE MBC CORP IN A STOCK SWAP VALUED AT 204 MILLION TERMS CALL FOR EACH SHARE OF MBC COMMON TO BE EXCHANGED FOR ABOUT 085 SHARE OF CALIFORNIA BANCSHARES COMMON SUBJECT TO ADJUSTMENT BASED ON CALIFORNIA BANCSHARES' STOCK PRICE PRIOR TO THE CLOSE 9309100067 930910 BUSINESS BRIEF COCACOLA CO SALE OF CANNED SOFT DRINKS SPURS EXPANSION IN ALGERIA COCACOLA CO SAID IT HAS BEGUN PRODUCING AND SELLING CANNED COCACOLA IN ALGERIA CALLING THE MOVE A FIRST STEP IN THE DEVELOPMENT OF THE SOFTDRINK INDUSTRY IN THE NORTHWEST AFRICAN COUNTRY AS PRODUCTION CAPACITY GROWS SPRITE AND FANTA WILL ALSO BE PRODUCED IN CANS ATLANTABASED COKE SAID FOR THE PAST 20 YEARS THE COMPANY HAS BEEN SELLING ITS BEVERAGES IN BOTTLES IN ALGERIA BUT CANNED PRODUCTS TEND TO BOOST SALES VOLUMES BECAUSE THEY ARE MORE CONVENIENTLY PACKAGED FOR CONSUMERS AS PART OF ITS DRIVE INTO ALGERIA COKE ALSO SAID IT IS IN TALKS TO FORM A JOINT VENTURE WITH THE STATEOWNED COMPANY ENAVA OR ENTERPRISE NATIONALE DES VERRES ET ABRASIFS UNDER THE JOINT VENTURE COKE AND THE ALGERIAN COMPANY WOULD INITIALLY CONSTRUCT TWO SOFTDRINK PLANTS IN ALGERIA 9309100066 930910 MARKETING & MEDIA ADVERTISING OLD SPICE DROWNS ITS SAILOR ICON GRABS A NEW AD PLAN FOR LIFEBOAT BY KEVIN GOLDMAN OLD SPICE IS ENTERING ROUGH UNCHARTED WATERS THE VENERABLE MEN'S FRAGRANCE BRAND HAVING TOSSED OVERBOARD ITS TRADEMARK WHISTLING SAILOR IS LAUNCHING A NEW AD CAMPAIGN THAT USES RAPIDFIRE EDITING AND MENINACTION SCENES OLD SPICE IS EVEN BRINGING ON BOARD THE PERKY FEMALE MTV VEEJAY DUFF AT A PRESS CONFERENCE IN NEW YORK TODAY TO DETAIL THE NEW MARKETING STRATEGY WHY DUFF ACCORDING TO OLD SPICE SHE REPRESENTS THE NEW YOUTHFUL TARGET MARKET FOR AFTERSHAVE AND DEODORANT PRODUCTS THE SHIFT IN ADVERTISING FOR THE BRAND OWNED BY PROCTER & GAMBLE SINCE 1990 COMES AS BUSINESS IS BOOMING IN THE MEN'S FRAGRANCE CATEGORY SALES HOWEVER ARE OFF FOR OLD SPICE'S AFTERSHAVE LOTION THE ADVERTISING SHIFT ALSO COMES AS OLD SPICE IS TRYING TO ERASE THE IMAGE OF YOUR FATHER'S AFTERSHAVE IT'S A PROBLEM THAT OTHER COMPANIES RANGING FROM GENERAL MOTORS' OLDSMOBILE TO THE THOM MCAN SHOE CO ARE ALSO WRESTLING WITH HOW TO SPRUCE UP AN IMAGE THAT MAY JUST BE TOO OLD ALTHOUGH OLD SPICE STILL IS RANKED THE NO 1 MEN'S AFTERSHAVE ITS SHARE IS BEING NIBBLED BY DESIGNER BRANDS SAYS ALLAN MOTTUS A HEALTHCARE AND BEAUTY MARKETING CONSULTANT FURTHER OLD SPICE IS THE ONLY TOP BRAND WITH SALES THAT ACTUALLY FELL IN A 52WEEK PERIOD THAT ENDED AUG 1 ACCORDING TO INFORMATION MARKETING SERVICES THE ENTIRE MEN'S FRAGRANCE CATEGORY HAD SALES OF 4452 MILLION UP 95 FROM THE SAME PERIOD A YEAR EARLIER OLD SPICE LED WITH SALES OF 555 MILLION TO CAPTURE 125 OF THE ENTIRE CATEGORY BUT ITS SALES FELL 28 THE SALES OF PFIZER'S STETSON RANKED NO 2 ROSE 86 TO 525 MILLION AND CHESEBROUGHPOND'S BRUT FOLLOWED WITH SALES UP 28 TO 289 MILLION SALES OF OLD SPICE HIGH ENDURANCE DEODORANT ROSE 48 TO 62 MILLION IN THE 52WEEK PERIOD ENDING JUNE 20 IT OUTPERFORMED THE ENTIRE DEODORANT CATEGORY WHICH HAD SALES OF 15 BILLION AN INCREASE OF 29 OVER THE SAME PERIOD A YEAR AGO ALTHOUGH INFORMATION MARKETING SERVICES COULDN'T PROVIDE AN EXACT RANKING FOR OLD SPICE'S DEODORANT IT HAD A 42 MARKET SHARE IN COMPARISON CATEGORY LEADER SECRET HAD SALES OF 170 MILLION AND A 115 MARKET SHARE OLD SPICE IS ABOUT TO GET SOME HEFTY COMPETITION IN THE DEODORANT CATEGORY YESTERDAY GILLETTE ANNOUNCED PLANS TO ACHIEVE CLEAR LEADERSHIP IN THE COMPETITIVE DEODORANT/ANTIPERSPIRANT CATEGORY INTRODUCING CLEAR GEL ANTIPERSPIRANT AND DEODORANT TO ITS RIGHT GUARD SOFT & DRI AND DRY IDEA BRANDS BOSTONBASED GILLETTE HAS ALLOCATED MORE THAN 57 MILLION IN TOTAL MARKETING SUPPORT FOR THE NEW CLEAR GEL PRODUCTS THE MARKETING SUPPORT PROGRAM WILL INCLUDE PRINT AND BROADCAST ADVERTISING AMONG OTHER TACTICS WE RECOGNIZE THE NEED TO CHANGE AND BRING IN A NEW GENERATION OF YOUNG USERS SAYS JON HALL MARKETING DIRECTOR AT OLD SPICE AT THE SAME TIME WE DON'T WANT TO ALIENATE THE USERS WE ALREADY HAVE TO WALK THAT DELICATE LINE MR HALL SAYS OLD SPICE WILL BOOST ITS ANNUAL AD BUDGET OVER ANY AMOUNT IT SPENT PREVIOUSLY LAST YEAR OLD SPICE SPENT APPROXIMATELY 50 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING IN OLD SPICE'S LATEST ADS FROM TATHAM RSCG CHICAGO A BICYCLIST PEDALS FEVERISHLY WHILE HIS GIRLFRIEND CHEERS HIM ON THE SECRET TO A STRONG FINISH IS ENDURANCE SAYS THE ANNOUNCER THE PRODUCT DOESN'T WEAR OUT LIKE THE OTHER GUYS THE FINAL SHOT SHOWS THE COUPLE REUNITED AND HUGGING WITH THE SCENE DISSOLVING INTO A SHOT OF THE FAMILIAR OLD SPICE WAVE THE WAVE IS THE ONLY IMAGE FROM THE SEATHEME CAMPAIGN THAT BUILT THE WHISTLING MARINER INTO AN OLD SPICE ICON ACCORDING TO COMPANY LORE MANY MEN FIRST SPLASHED THEMSELVES WITH OLD SPICE AFTERSHAVE DURING WORLD WAR II WHEN THE PRODUCT WAS INSERTED IN TOILETRY KITS FOR GIS THE WHISTLING MARINER'S RETIREMENT IS A BIT OF A RISK SAY MARKETING AND IMAGE EXPERTS ALTHOUGH THEY WERE CLEARLY ANCHORED IN THE PAST SAYS PETER J HARLEMAN EXECUTIVE VICE PRESIDENT OF LANDOR ASSOCIATES THEY COULD BE RUNNING SMACK INTO OTHER FRAGRANCE COMPANIES THAT ALREADY HAVE A LOCK ON THE YOUNGER HIPPER IMAGE BUT JOHN LISTER CHIEF EXECUTIVE OFFICER AND CREATIVE DIRECTOR OF LISTER BUTLER A BRANDIDENTITY CONSULTING FIRM SAYS IT'S TIME FOR A CHANGE THE NAME DOESN'T HELP ESPECIALLY WITH THE WORD OLD' HE SAYS AND THE GRAPHIC IMAGE OF THE SCHOONER ALSO DIDN'T ADD ANYTHING TO MAKE THE IMAGE YOUNGER MR LISTER ADDS BUT THERE IS A DANGER OF DISCARDING A WELLKNOWN IMAGE THE SAILOR CAN BE RECALLED EASILY BUT IN THE END THE SAILOR IS STUCK IN TIME AND CANNOT BE MODIFIED INDEED THE MARINER'S IMAGE IS SO ENTRENCHED THAT EXPERTS SUCH AS MR LISTER HAD TO BE REMINDED THAT THE SAILOR HASN'T BEEN INCLUDED IN COMMERCIALS FOR ABOUT 18 MONTHS OLD SPICE'S MR HALL HOWEVER SEES LITTLE RISK IN THE NEW CAMPAIGN WHEN WE BOUGHT THE BUSINESS HE SAYS WE REALIZED WE HAD TO GET YOUNGER CUSTOMERS TO THAT END OLD SPICE IS BECOMING A SPONSOR OF BEACH VOLLEYBALL GAMES IN FACT IT TRUCKED IN 800 TONS OF SAND TO A BEACH ON THE OHIO RIVER RECENTLY FOR SUCH AN EVENT AND OLD SPICE IS THE TITLE SPONSOR FOR TWO ASSOCIATION OF VOLLEYBALL PROFESSIONALS' TOURNAMENTS THIS YEAR WE HAVE KEPT THE BYTHESEA IMAGE THAT THE SAILOR EMBODIED SAYS MR HALL WE ARE JUST DOING IT IN A DIFFERENT YOUNGER WAY AND MR HALL QUICKLY ADDS RESEARCH SHOWS IT IS BEING DONE IN A WAY THAT DOESN'T ALIENATE ITS CORE CUSTOMER ANCHORS AWEIGH DIGITAL EQUIPMENT CORP MAYNARD MASS IS REVIEWING AT LEAST FOUR AGENCIES FOR A BIG NEW PERSONAL COMPUTER ADVERTISING PUSH INDUSTRY EXECUTIVES SAID CREATING A SECOND CHANCE FOR SHOPS THAT FAILED TO MAKE THE CUT IN ANOTHER ONGOING PC PITCH THAT OF INTERNATIONAL BUSINESS MACHINES CORP ALTHOUGH BILLINGS COULDN'T BE DETERMINED EXECUTIVES SAID THE NEW PUSH COULD BE VALUED AT AS MUCH AS 30 MILLION ANNUALLY A DIGITAL SPOKESWOMAN CONFIRMED THAT A PITCH IS UNDER WAY DECLINING TO IDENTIFY COMPETITORS OR BILLINGS THE INCUMBENTS ON THE BUSINESS ARE THE PITTSBURGH OFFICE OF KETCHUM ADVERTISING AND KRUPP TAYLOR FOOTE CONE & BELDING'S LOS ANGELES DIRECTMARKETING UNIT THE SPOKESWOMAN SAID A DECISION IS EXPECTED IN SEVERAL WEEKS EXECUTIVES SAID KETCHUM AND FOOTE CONE ARE AMONG THE CONTENDERS ALSO PARTICIPATING EXECUTIVES SAID ARE TWO AGENCIES THAT WERE INVITED TO THE FIRST ROUND OF IBM'S PITCH EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER AND YOUNG & RUBICAM Y&R HAD DECLINED TO PARTICIPATE IN IBM'S SEARCH AGENCIES ARE ON ALERT FOR ACCOUNT REPERCUSSIONS FROM TWO MAJOR SHIFTS IN CONSUMER PRODUCTS BRANDS THIS WEEK UNILEVER'S ANTICIPATED ACQUISITION OF ICE CREAM BRANDS INCLUDING BREYERS SEALTEST AND FRUSEN GLADJE FROM PHILIP MORRIS'S KRAFT GENERAL FOODS BODES A LIKELY LOSS OF BILLINGS FOR YOUNG & RUBICAM THE BIG NEW YORK SHOP CREATES THE ICE CREAM ADS BUT IT ISN'T PART OF UNILEVER'S AGENCY STABLE BREYERS BILLED AN ESTIMATED 11 MILLION IN 1992 ACCORDING TO COMPETITIVE MEDIA REPORTING A UNILEVER SPOKESMAN SAID THE COMPANY HASN'T SET PLANS YET FOR THE BRANDS' ADVERTISING CADBURY SCHWEPPES'S US BEVERAGE GROUP PLANS TO ACQUIRE A&W BRANDS BUT CADBURY SAYS IT IS TOO SOON TO TELL WHETHER THE MOVE WILL RESULT IN A CHANGE OF AGENCIES FOR THE A&W SODAS MOST ADVERTISING FOR THE A&W LINE CURRENTLY IS HANDLED BY EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER NEW YORK A&W SODAS BILLED ABOUT 6 MILLION LAST YEAR NEW CAMPAIGN NATIONSBANK CHARLOTTE NC PLANS TO LAUNCH A NEW ADVERTISING CAMPAIGN IN AN ATTEMPT TO MAKE PEOPLE MORE FAMILIAR WITH THE BANK'S NAME THE MAIN THEME OF THE CAMPAIGN HANDLED BY TEMERLIN MCCLAIN OF DALLAS IS THAT NATIONSBANK TRANSFORMS THE COMMUNITIES IT SERVES INTO FINANCIAL CENTERS THE BANK HOLDING COMPANY WOULDN'T DISCUSS ITS AD BUDGET 9309100065 930910 BUSINESS BRIEF LIVING CENTERS OF AMERICA INC CONCERN EXPECTS NET INCOME FOR 4TH QUARTER ROSE 21 LIVING CENTERS OF AMERICA INC EXPECTS TO REPORT THAT FISCAL FOURTHQUARTER NET INCOME INCREASED 21 TO 35 MILLION OR 37 CENTS A SHARE FROM A YEAR EARLIER SAID EDWARD L KUNTZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE HOUSTON COMPANY WHICH OWNS AND OPERATES NURSING HOMES SAID THE EXPECTED HIGHER PROFITS FOR THE QUARTER ENDED SEPT 30 CAME FROM AN EXPANSION OF SPECIALTYCARE SERVICES THAT HAVE HIGHER MARGINS FOR THE YEAREARLIER QUARTER THE COMPANY EARNED 29 MILLION OR 31 CENTS A SHARE ON REVENUE OF 949 MILLION MR KUNTZ SAID THE COMPANY EXPECTS TO REPORT THAT REVENUE ROSE TO ABOUT 98 MILLION IN THE LATEST PERIOD LIVING CENTERS OWNS 211 LONGTERM HEALTH CENTERS IN NINE STATES BUT FOCUSES ON TEXAS COLORADO AND FLORIDA IT EXPECTS TO COMPLETE AN ACQUISITION OF ANOTHER NURSINGHOME COMPANY VARICARE INC FOR ABOUT 42 MILLION IN TWO WEEKS THE PURCHASE WILL EXPAND LIVING CENTER'S BEDS NOW AT ABOUT 19000 BY 13 9309100064 930910 MARKETING & MEDIA BASEBALL OWNERS TO DIVIDE LEAGUES EXPAND PLAYOFFS MAJOR LEAGUE BASEBALL OWNERS DECIDED TO DIVIDE EACH LEAGUE INTO THREE DIVISIONS AND TO EXPAND THE PLAYOFFS FROM FOUR TO EIGHT TEAMS IN 1994 SIX DIVISION WINNERS AND TWO WILDCARD TEAMS WILL MAKE THE PLAYOFFS WHICH WILL HAVE THREE ROUNDS INSTEAD OF TWO DROOPING TELEVISION REVENUES HAVE IN PART DRIVEN OWNERS TO CONSIDER THE POTENTIALLY MORE LUCRATIVE FORMAT WHICH IS SUBJECT TO THE PLAYER ASSOCIATION'S APPROVAL THE BASEBALL OWNERS ALSO ANNOUNCED A NEW CABLE TELEVISION ACCORD WITH ESPN INC A UNIT OF CAPITAL CITIES/ABC INC LEAGUE OFFICIALS SAID ESPN WILL PAY ABOUT 2556 MILLION FOR A SIXYEAR CONTRACT THAT BEGINS NEXT YEAR THE AMOUNT FALLS WELL SHORT OF ESPN'S CURRENT 390 MILLION FOURYEAR CONTRACT THE CABLE CHANNEL WILL SHOW THREE GAMES A WEEK DOWN FROM SIX GAMES A WEEK WE FELT THAT THERE WAS TOO MUCH BASEBALL ON TELEVISION AN ESPN SPOKESWOMAN SAID THE BASEBALL OWNERS ALSO REACHED A SIXYEAR 505 MILLION CONTRACT WITH CBS RADIO FOR RADIO RIGHTS A FOURYEAR PACT EXPIRING THIS YEAR TOTALED 525 MILLION THE OWNERS AGREED EARLIER THIS YEAR TO SHARE WITH NBC AND ABC THE PROFIT AND EXPENSES FROM NETWORK TELEVISION BASEBALL COVERAGE UNDER THE CURRENT 1057 BILLION FOURYEAR TV CONTRACT WITH CBS PROCEEDS FROM THAT PACT ARE EXPECTED TO BE ABOUT HALF 9309100063 930910 FAREWELL TO THE OLD PLO BY STEVEN EMERSON YESTERDAY'S ANNOUNCEMENT BY ISRAEL AND THE PLO THAT THEY WILL RECOGNIZE EACH OTHER'S RIGHT TO EXIST IS INDEED HISTORIC BUT THE AGREEMENT WILL SUCCEED ONLY IF YASSER ARAFAT AND HIS PALESTINE LIBERATION ORGANIZATION UNDERGO A GENUINE TRANSFORMATION IN PRACTICAL TERMS THIS WILL REQUIRE THE OLD MR ARAFAT AND THE OLD PLO TO DISAPPEAR IN SYMBOLIC TERMS THE ACCORD HOLDS FAR MORE IMPORTANCE FOR MR ARAFAT THAN FOR ISRAEL IT MEANS THAT THE PLO LEADER HAS FINALLY FOUND THE HOLY GRAIL HE HAS BEEN SEEKING FOR SO MANY YEARS LEGITIMACY FOR THE PAST DECADE IT HAS BEEN MR ARAFAT'S DESIRE FOR LEGITIMACY THAT HAS PROPELLED HIM TOWARD ACCEPTANCE OF THE STATE OF ISRAEL AND A PUBLIC MODERATION OF HIS VIEWS IN 1988 MR ARAFAT PUBLICLY RENOUNCED TERRORISM AND ACCEPTED ISRAEL'S RIGHT TO EXIST THESE UTTERANCES SHAPED BY AMERICAN OFFICIALS WHO WANTED TO CONFER RECOGNITION UPON HIM IMMEDIATELY RESULTED IN DIRECT TALKS WITH THE US AT THE SAME TIME HOWEVER MR ARAFAT WANTED TO HAVE HIS CAKE AND EAT IT TOO HE TRIED TO BE ALL THINGS TO ALL HIS PLO CONSTITUENT GROUPS GROUPS THAT INCLUDE HIS DOMINANT MODERATE FATAH FACTION AS WELL AS THOSE THAT CONTINUED TO REJECT ISRAEL'S EXISTENCE AMONG THE LATTER ARE NAIF HAWATMEH'S DEMOCRATIC FRONT FOR THE LIBERATION OF PALESTINE GEORGE HABASH'S POPULAR FRONT FOR THE LIBERATION OF PALESTINE AND ABU ABBAS'S OF ACHILLE LAURO FAME PALESTINE LIBERATION FRONT THUS WHILE TELLING EAGER WESTERN JOURNALISTS THAT HE ACCEPTED A TWOSTATE SOLUTION MR ARAFAT CONTINUED TO ISSUE PUBLIC STATEMENTS IN THE ARAB WORLD DENYING JEWISH CLAIMS TO PALESTINE WORSE DESPITE HIS RENUNCIATION OF TERROR HE CONTINUED TO SPONSOR TERRORIST ACTS AGAINST ISRAELI TARGETS FROM 1988 TO 1992 FATAH WAS RESPONSIBLE FOR DOZENS OF ATTACKS AGAINST ISRAEL IF THERE IS A KEY TO MR ARAFAT'S SUCCESS AT BEING RECOGNIZED BY ALL PALESTINIANS AS MR PALESTINE IT HAS BEEN THIS CAREFUL AMBIGUITY TOWARD ISRAEL EVER SINCE HE TOOK OVER THE PLO IN 1969 HIS SURVIVAL HAS DEPENDED ON HIS ABILITY TO BE ALL THINGS TO ALL PEOPLE RADICALS AND MODERATES ALIKE TAKE FOR EXAMPLE THE HISTORIC 1988 DECLARATION DRAFTED BY MR ARAFAT AND RATIFIED BY THE 450MEMBER PALESTINE NATIONAL COUNCIL IT DECLARED THE EXISTENCE OF AN INDEPENDENT PALESTINIAN STATE AND HINTED INDIRECTLY AT ITS ACCEPTANCE OF ISRAEL IMMEDIATELY AFTER PASSAGE OF THIS RESOLUTION HOWEVER AS PLO HISTORIAN BARRY RUBIN HAS NOTED FAROUK KADOUMI HEAD OF THE PLO'S POLITICAL DEPARTMENT AND A CLOSE FATAH ASSOCIATE OF MR ARAFAT DENIED THAT THE RESOLUTION ACCEPTED ISRAEL'S EXISTENCE AT THE SAME TIME YAKOUB TERZI THE PLO REPRESENTATIVE TO THE UNITED NATIONS WAS ASSURING THE WORLD THAT THE RESOLUTION RECOGNIZED ISRAEL IN SHORT IT HAS BEEN MR ARAFAT'S OBSESSION WITH NATIONAL UNITY KNOWN IN ARABIC AS WACHTA WATANIA THAT HAS BEEN RESPONSIBLE FOR HIS SUCCESS WITHIN PALESTINIAN POLITICS THAT SUCCESS HAS BEEN ACHIEVED AT A GREAT LOSS HE HAS LET MANY STRATEGIC DIPLOMATIC OPPORTUNITIES FALL THROUGH HIS HANDS ULTIMATELY THE END RESULT WAS THE PERPETUATION OF THE ISRAELI OCCUPATION AND THE CONTINUED SUFFERING OF THE PALESTINIAN PEOPLE THE AGREEMENT SIGNED YESTERDAY SIGNALS MR ARAFAT'S INTENTION TO FINALLY RISK THE NATIONAL UNITY THAT HE HAS SO LONG TRIED TO PRESERVE BUT IN DOING SO MR ARAFAT WILL HAVE TO FORGE A RADICAL COURSE HE MUST EITHER TRANSFORM OR DESTROY THE PLO CREATED IN 1964 THE PLO SO FAR HAS SERVED AS A MICROCOSM OF THE ARAB WORLD IT HAS BEEN AN UMBRELLA GROUP FOR DIFFERENT PALESTINIAN FACTIONS SPANNING THE ENTIRE SPECTRUM OF POLITICS AND LIKE THE ARAB WORLD FOR MUCH OF ITS HISTORY IT WAS THE LOWEST COMMON DENOMINATOR THAT SERVED AS THE UNIFYING FACTOR PALESTINIAN OPPOSITION TO YESTERDAY'S ACCORD IS NOT INSIGNIFICANT HAMAS AND THE PALESTINIAN ISLAMIC JIHAD TWO RADICAL FUNDAMENTALIST GROUPS HAVE DECLARED THEIR INTENTION TO FIGHT IT AHMED JABRIL HEAD OF THE SYRIANCONTROLLED POPULAR FRONT FOR THE LIBERATION OF PALESTINE VOWS TO KILL MR ARAFAT WITHIN HIS OWN FACTION OF THE PLO FAROUK KADOUMI SHAFIK ALHOUT AND SEVERAL OTHER SENIOR FATAH OFFICIALS IN ADDITION TO GEORGE HABASH AND NAIF HAWATMEH HAVE ANNOUNCED THEIR REJECTION OF THE AGREEMENT MR ARAFAT HIMSELF WILL NOT CONVENE THE PALESTINE NATIONAL COUNCIL TO RESCIND THE RACIST SECTIONS OF THE PLO COVENANT A DEMAND ORIGINALLY MADE AND THEN DROPPED BY ISRAEL PRECISELY BECAUSE HE KNOWS HE CANNOT GET IT PASSED IF MR ARAFAT IS COMMITTED TO ACCEPTING ISRAEL HE WILL HAVE TO CHANGE HIS BEHAVIOR AND REDEFINE THE PLO THIS MEANS SEVERAL THINGS FIRST HE WILL HAVE TO CONFRONT HIS ADVERSARIES IN LANGUAGE THAT UNAMBIGUOUSLY ACCEPTS THE LEGITIMACY OF ISRAEL AND CLAMPS DOWN ON TERRORISM IF HE SPONSORS ALLOWS OR TURNS A BLIND EYE TO TERRORIST ATTACKS CARRIED OUT AGAINST ISRAELI TARGETS HE WILL FACE A SEVERE ISRAELI BACKLASH THAT WILL UNDO ALL THE PROGRESS THAT HAS BEEN ACHIEVED CONVERSELY IF HE SHOWS A REAL DETERMINATION TO STOP TERROR AND TO APPREHEND THOSE WHO COMMIT IT HE WILL DEMONSTRATE TO ISRAEL A GENUINE TRANSFORMATION THAT WILL HAVE THE EFFECT OF NEUTRALIZING A GREAT DEAL OF LONGTIME AND JUSTIFIABLE ISRAELI DISTRUST SECOND MR ARAFAT CANNOT REMAIN AS HEAD OF THE PLO AS CURRENTLY CONSTITUTED HE SIMPLY CANNOT CLAIM TO SPEAK ON BEHALF OF THE ENTIRE ORGANIZATION IF SUBSTANTIAL OPPOSITION WORKS AGAINST HIS NEGOTIATIONS WITH ISRAEL EITHER HE AND HIS SUPPORTERS WILL HAVE TO LEAVE THE PLO OR HIS OPPOSITION WILL HAVE TO LEAVE MR ARAFAT IS OBLIGATED TO ASSURE ISRAEL OF SATISFACTORY ANSWERS TO THE QUESTIONS THAT HAVE BEEN NAGGING CONSTANTLY AT THE HEELS OF ITS NEGOTIATORS WITH WHICH PLO DID WE SIGN CAN MR ARAFAT DELIVER AS HE SAYS IF HE CAN'T SUCCEED IN FORMALLY CHANGING THE PLO COVENANT WILL HE BE STRONG ENOUGH TO STAND UP TO HIS OPPOSITION THIRD MR ARAFAT WILL NOT BE ABLE TO GET AWAY WITH HIS PREVIOUS PATTERN OF AGREEING TO ONE THING AND THEN BLITHELY DISPUTING IT ALREADY THE FIRST INDICATIONS ARE NOT VERY PROMISING THIS WEEK MR ARAFAT GAVE SEVERAL INTERVIEWS IN ARAB NEWSPAPERS CLAIMING THAT HE AND THE PLO WOULD CONTROL ACCESS OVER THE ALLENBY BRIDGE TO JORDAN FROM THE WEST BANK IN FACT CONTROL OVER THE ALLENBY BRIDGE WAS EXPLICITLY LEFT IN THE HANDS OF ISRAEL ACCORDING TO THE TERMS OF THE AGREEMENT WORKED OUT IN NORWAY FOURTH MR ARAFAT AND HIS PEOPLE WILL HAVE TO STOP SUPPORTING PLO TERRORISTS FOR EXAMPLE IN TORONTO TODAY THE PLO HAS BEEN PAYING FOR THE DEFENSE OF A CONVICTED PLO TERRORIST WHO RAKED AN ELAL PLANE WITH MACHINEGUN FIRE IN GREECE IN 1988 KILLING AN ISRAELI IN THE PAST THREE YEARS IT HAS TRIED TO BLOCK THE EXTRADITION BY THE US OF SEVERAL CAPTURED PLO TERRORISTS FIFTH MR ARAFAT WILL HAVE TO DEMOCRATIZE THE PLO ONE OF THE BIGGEST COMPLAINTS MADE AGAINST HIM IN RECENT YEARS BY PALESTINIANS OF ALL POLITICAL STRIPES IS HIS AUTOCRATIC STYLE MOREOVER SHOULD MR ARAFAT DIE THERE IS NO CLEAR SUCCESSOR SELFANOINTED HEIRS COULD EASILY RENOUNCE MR ARAFAT'S ACCEPTANCE OF ISRAEL OR DISAVOW THE PLO EXECUTIVE COMMITTEE'S RAZORTHIN APPROVAL OF MUTUAL RECOGNITION TO AVOID THIS POTENTIAL CALAMITY HE WILL HAVE TO SHARE HIS BASE OF POWER AND INSTITUTIONALIZE THE LINE OF SUCCESSION FOR MANY YEARS MR ARAFAT HAS BEEN ASKING WHAT HE HAD TO DO TO GET SOME RESPECT BY SPEAKING THE RIGHT WORDS YESTERDAY HE HAS FINALLY ACHIEVED HIS LONGTIME GOAL BUT RELATIVELY SPEAKING YESTERDAY'S AGREEMENT WAS EASY NOW THE HARD PART WHAT TO DO NEXT MR EMERSON IS THE AUTHOR OF THE FORTHCOMING MOHAMMED'S ARMY ON ISLAMIC FUNDAMENTALISM 9309100062 930910 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY THAT LITTLE BUNDLE OF JOY WILL COST YOU A BUNDLE BY LYNN ASINOF ADD UP THE DIAPERS THE SNEAKERS THE BREAKFAST CEREAL THE TOYS THE NURSERY SCHOOL THE PIANO LESSONS THE BICYCLES THE SUMMER CAMP THE BIRTHDAY PARTIES THE BLUE JEANS THE HAIRCUTS THE USE OF THE FAMILY CAR THE STEREO EQUIPMENT AND THE PROM CLOTHES WHAT YOU'LL FIND IS NO SURPRISE CHILDREN ARE EXPENSIVE JUST HOW EXPENSIVE IS TOUGH TO CALCULATE NOT ONLY IS IT HARD TO KNOW WHETHER KIDS OR GROWNUPS ATE THE CHEERIOS BUT THE AMOUNT SPENT ALSO VARIES ACCORDING TO THE INCOME OF THE FAMILY THE ORDER OF BIRTH WHERE THE FAMILY LIVES HOW MANY CHILDREN ARE IN THE FAMILY AND WHETHER THE PARENTS ARE DIVORCED BUT TRY THIS ON FOR SIZE IN FAMILIES THAT MAKE MORE THAN 52000 A YEAR A CHILD BORN IN 1992 WILL COST HIS OR HER PARENTS 180690 BY THE AGE OF 18 ACCORDING TO A STUDY BY THE FAMILY ECONOMICS RESEARCH GROUP OF THE UNITED STATES DEPARTMENT OF AGRICULTURE THAT'S WITH NO INFLATION FIGURING A 6 ANNUAL INFLATION RATE THE COST BECOMES 314550 A LOT OF PEOPLE WILL SPEND MORE THAT'S BECAUSE THESE NUMBERS ARE FOR THE SECOND OF TWO CHILDREN IN A FAMILY OF FOUR THE FIRST CHILD WOULD COST ABOUT 3 MORE WITH PARENTS GENERALLY SPENDING MORE ON CLOTHING AND A CATEGORY THAT INCLUDES EDUCATION CHILD CARE AND OTHER IF YOU'RE TALKING ABOUT AN ONLY CHILD THE COSTS GO UP A WHOPPING 21 SINCE THE COST OF THE CRIB THE FAMILY CAR AND THE BIGGER HOUSE AREN'T SPREAD OVER MORE THAN ONE CHILD THAT MEANS AN ONLY CHILD COSTS 218635 OR 380605 IN INFLATIONADJUSTED DOLLARS ADD ANOTHER 25 IF YOU LIVE IN THE NORTHEAST EVEN THEN THESE NUMBERS DON'T GIVE YOU THE WHOLE PICTURE THEY DON'T INCLUDE THE COST OF PRENATAL CARE OR CHILDBIRTH NOR ARE THE EXPENSES OF COLLEGE TUITION ROOM AND BOARD WHICH CAN BE 30000 OR YEAR OR MORE PART OF THAT TOTAL WHERE DOES THE MONEY GO HOUSING GETS THE BIGGEST SHARE SOME 65000 OF THE 180690 THE EDUCATION CHILD CARE AND OTHER CATEGORY RANKS SECOND AT A COST OF 37000 THAT'S WHERE STEREO EQUIPMENT HAIRCUTS AND VIDEO RENTALS ARE HIDDEN CLOTHES TYPICALLY COST 1000 A YEAR BY THE TIME A CHILD IS 12 AND TRANSPORTATION EXPENSES HIT MORE THAN 2000 A YEAR BY THE TIME A CHILD IS 15 YEARS OLD TAKING INTO ACCOUNT THE INDIRECT COSTS SUCH AS THE LOST CAREER OPPORTUNITIES AND THE FOREGONE EARNINGS THAT RESULT FROM TAKING TIME TO REAR CHILDREN RESEARCHERS HAVE FOUND THAT COSTS CAN ACTUALLY BE MORE THAN DOUBLE THESE ESTIMATES SAYS MARK LINO AUTHOR OF THE REPORT BUT PEOPLE CONTINUE TO HAVE CHILDREN HE SAYS THEY MUST BE WORTH IT SEE RELATED ARTICLES PERSONAL FINANCES REVOLVE AROUND THE FAMILY AND PROVIDING FOR FAMILY THROUGH THE AGES WSJ SEPT 10 1993 9309100061 930910 WORLD MARKETS LONGANTICIPATED RATE CUTS BY GERMANY LEAVE EUROPEAN STOCK MARKETS LARGELY UNIMPRESSED BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL THE GERMAN CENTRAL BANK'S INTERESTRATE CUTS YESTERDAY LEFT EUROPEAN FINANCIAL MARKETS LARGELY UNIMPRESSED PARTLY BECAUSE THE REDUCTIONS HAD BEEN ANTICIPATED AND BECAUSE DEALERS EXPECT ANY FURTHER BUNDESBANK MONETARY EASINGS TO BE FEW AND FAR BETWEEN WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11262 UP 009 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND A DROP IN ASIA/PACIFIC MARKETS ADVERTISING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13060 UP 270 OR 21 WITH INTERPUBLIC GROUP OF THE US POSTING A 37 GAIN IN ITS LOCAL CURRENCY STEEL STOCKS TRAILED AT 11063 DOWN 147 OR 13 WITH NIPPON STEEL OF JAPAN SLIDING 5 IN LOCAL CURRENCY THE GERMAN MARK ROSE AGAINST THE US DOLLAR AND MOST EUROPEAN CURRENCIES AMID PERCEPTIONS THAT THE LOWER GERMAN RATES WOULD SPEED THE COUNTRY'S ECONOMIC RECOVERY TRADERS WERE ENCOURAGED BY BUNDESBANK PRESIDENT HELMUT SCHLESINGER'S ASSERTIONS THAT GERMAN INFLATION WAS BEING PUT UNDER CONTROL AMONG STOCK MARKET PARTICIPANTS ABOUT HALF HAD EXPECTED THE GERMAN MOVE AFTER THE BUNDESBANK HAD HELD RATES FIRM FOR NINE WEEKS THE OTHER HALF WASN'T SURPRISED THIS IS ALL PART OF THE PROCESS OF THE BUNDESBANK BEING SLOW TO CUT SAID ALBERT EDWARDS A STRATEGIST AT KLEINWORT BENSON SECURITIES LTD IN GENERAL BUNDESBANK POLICY REMAINS QUITE TIGHT THE DISCOUNT RATE CHARGED ON BUNDESBANK LOANS TO BANKS WAS LOWERED TO 625 FROM 675 THE LOMBARD RATE WHICH THE CENTRAL BANK CHARGES ON SUPPLEMENTAL BORROWINGS THAT USE SECURITIES AS COLLATERAL WAS REDUCED TO 725 FROM 775 THIS RATE SERVES AS A CEILING FOR SHORTTERM MONEY MARKET RATES EVA HERMES AN ECONOMIST AT WESTDEUTSCHE LANDESBANK GIROZENTRALE SAID THE RATE CUTS HAD ALREADY BEEN FACTORED INTO GERMAN GOVERNMENT BOND PRICES DURING THE PAST WEEK THE MARKET WAS LOOKING A BIT OVERBOUGHT SO PROFITTAKING IS UNDERSTANDABLE PROFITTAKING WAS THE ORDER OF THE DAY ON MOST EUROPEAN STOCK MARKETS FOLLOWING A DOWNWARD TREND THAT BEGAN MONDAY IN FRANKFURT THE DAX 30STOCK INDEX SHED 448 POINTS TO 188081 AFTER ANTICIPATING THE BUNDESBANK CUT FOR ALMOST THREE MONTHS MARKET PARTICIPANTS IMMEDIATELY BEGAN TO SPECULATE THAT THIS WOULD BE THE LAST REDUCTION FOR A WHILE THE BUNDESBANK WON'T BE IN ANY HURRY TO CUT RATES FURTHER SAID IAN MCCAFFERTY AN ECONOMIST AT NATWEST MARKETS IN LONDON THEY WILL WAIT TO SEE AN ACTUAL IMPROVEMENT IN THE MONEY SUPPLY FIGURES RATHER THAN JUST ANTICIPATING THEM IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 42 POINTS TO 30312 AND THE FT 30STOCK INDEX FELL 59 POINTS TO 23667 ON VOLUME OF 7268 MILLION SHARES UP FROM 6004 MILLION SHARES A DAY EARLIER IN PARIS THE CAC40 INDEX SHED 2069 POINTS TO 210875 IN LACKLUSTER DEALINGS WHEN THE CUTS ARRIVED THEY HAD ALREADY BEEN TAKEN AS A FAIT ACCOMPLI ON THE BOURSE SAID FLORENT BRONES DIRECTOR OF EUROPEAN STRATEGY AT SOCIETE GENERALE IN PARIS THE GAINS OVER THE LAST MONTH SET THE MARKET UP FOR A CONSOLIDATION BUT MR BRONES SAID HE WAS OPTIMISTIC ABOUT EUROPEAN EQUITIES IN GENERAL AND FRENCH STOCKS IN PARTICULAR OVER THE MEDIUM TERM SINCE THE VIRTUAL COLLAPSE OF THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM AT THE BEGINNING OF AUGUST MOST EUROPEAN EQUITY MARKETS GAINED BETWEEN 5 AND 12 IN THE EXPECTATION THAT THE WIDER BANDS FOR CURRENCY TRADING WOULD MEAN LOWER INTEREST RATES THE BUNDESBANK CUTS SET THE STAGE FOR EVEN LOWER BOND YIELDS THAT MANY PEOPLE HAVE BEEN ANTICIPATING MR BRONES SAID LOWER YIELDS SHOULD SUPPORT STOCKS BY SPEEDING THE ECONOMIC RECOVERY BRITISH MONETARY AUTHORITIES ARE BELIEVED TO BE KEEN ON HOLDING DOWN THE POUND TO KEEP THE COUNTRY'S LARGELY EXPORTLED ECONOMIC REBOUND GOING BUT A CUT IN BRITAIN'S BASE LENDING RATE IS ANTICIPATED FOR NOVEMBER AROUND THE TIME THE GOVERNMENT PRESENTS THE NEW BUDGET WHICH PROBABLY WILL INCLUDE TAX INCREASES OTHER MARKETS TOKYO STOCKS FELL THURSDAY FOR A FOURTH DAY RUNNING AS ARBITRAGERS SOLD HOLDINGS AHEAD OF THE SETTLEMENT OF SEPTEMBER INDEX DERIVATIVE CONTRACTS FRIDAY WHEN SPECIALQUOTATION PRICES ARE FIXED BASED ON OPENING STOCK PRICES SHARE PRICES MOSTLY MOVED DOWN THROUGHOUT THE SESSION BUT RETAILERS AND ISSUES VIEWED AS BENEFITING FROM ANY JAPANESE GOVERNMENT DEREGULATION MEASURES BUCKED THE TREND RETAILERS ATTRACTED INTEREST BECAUSE OF EXPECTATIONS THAT THE GOVERNMENT WILL CUT INCOME TAXES TO SPUR THE ECONOMY THROUGH CONSUMER SPENDING IN OTHER SECTORS STEEL STOCKS WERE BIG LOSERS ON DISAPPOINTING EARNINGS ESTIMATES AND OIL REFINERS WERE HURT BY A SOFTER YEN WHICH MAKES DOLLARBASED CRUDEOIL PURCHASES MORE EXPENSIVE AND BY A NEWS REPORT THAT THE GOVERNMENT ASKED THE REFINERS TO PASS ON BENEFITS OF THE YEN'S RECENT STRENGTHENING TO CONSUMERS IN THE FORM OF LOWER PRICES AT THE PUMP IN SYDNEY SHARE PRICES RECOVERED SOME EARLY LOSSES BUT STILL CLOSED LOWER MAINLY BECAUSE OF A WEAK GOLD PRICE IN SINGAPORE STOCKS FELL AS INVESTORS CASHED IN PROFITS ON BLUE CHIPS HONG KONG SHARES FINISHED LOWER AFTER LATE SELLING WIPED OUT GAINS THAT HAD PUSHED THE MARKET TO NEW HEIGHTS FOLLOWTHROUGH BUYING FROM THE PREVIOUS SESSION'S SURGE LIFTED SHARES TO A RECORD INTRADAY PEAK OF 766363 ON THE HANG SENG INDEX BUT INVESTORS TURNED CAUTIOUS AND TOOK PROFITS BECAUSE OF POLITICAL WORRIES ABOUT THE LACK OF PROGRESS IN SINOBRITISH NEGOTIATIONS ON HONG KONG'S CONSTITUTIONAL REFORMS SEOUL STOCKS SURGED ON POSITIVE FACTORS INCLUDING RUMORS OF A CURRENCY EXCHANGE IN WHICH OLD SOUTH KOREAN WON NOTES AND COINS WOULD BE SWAPPED SEPT 23 FOR NEW BANKNOTES AND COINS OF THE SAME VALUES THIS COULD INJECT MORE CASH INTO THE STOCK EXCHANGE BY DRAWING MONEY FROM THE NATION'S HUGE CURBSIDE ECONOMY IN MANILA PRICES MOVED UP INTO RECORD TERRITORY IN HECTIC TRADING LED BY A STRONG TELEPHONE SECTOR HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9309100060 930910 BUSINESS BRIEF KAMAN CORP NET LOSS FOR THIRD QUARTER EXPECTED DUE TO BIG CHARGE KAMAN CORP SAID IT ANTICIPATES A LOSS OF 210 TO 240 A SHARE FOR THE THIRD QUARTER BECAUSE OF A PRETAX RESTRUCTURING CHARGE OF APPROXIMATELY 65 MILLION THE INDUSTRIAL COMMERCIAL AND DEFENSE CONCERN BASED IN BLOOMFIELD CONN SAID THE CHARGE STEMS FROM ANTICIPATED RESTRUCTURING COSTS DURING THE NEXT TWO YEARS AS KAMAN CONVERTS SOME OF ITS AEROSPACE DEFENSE LINES TO CIVILIAN BUSINESSES DEFENSE NOW ACCOUNTS FOR 34 OF TOTAL REVENUE WHICH WAS 785 MILLION IN 1992 THE YEAR EARLIER KAMAN REPORTED NET INCOME 45 MILLION OR 25 CENTS A SHARE BASED ON THE COMPANY'S PERSHARE ESTIMATE FOR 1993'S THIRD QUARTER THE LOSS FOR THE QUARTER WOULD BE APPROXIMATELY 38 MILLION TO 44 MILLION KAMAN WHICH CURRENTLY EMPLOYS 5400 WORKERS SAID THE REDUCTIONS AND DELAYS IN AEROSPACE DEFENSE PROGRAMS AND CUTS IN COMMERCIAL AIRLINER ORDERS WILL RESULT IN STAFF REDUCTIONS OF ABOUT 600 EMPLOYEES BY MID1995 MOST OF THE REDUCTIONS WILL BE IN THE COMPANY'S AEROSPACE UNIT KAMAN AEROSPACE CORP 9309100059 930910 WHAT'S NEWS WORLDWIDE THE PLO AND ISRAEL REACHED A HISTORIC ACCORD ON MUTUAL RECOGNITION AFTER MONTHS OF SECRET TALKS PLO LEADERS AND ISRAEL SWEPT AWAY A MAJOR OBSTACLE TO MIDEAST PEACE ISRAEL'S CABINET VOTED UNANIMOUSLY TO APPROVE MUTUAL RECOGNITION AND THE PLO'S RULING COMMITTEE LATER ENDORSED THE ACCORD BY AN 84 VOTE ISRAEL AGREED TO RECOGNIZE THE PLO FOR THE FIRST TIME WHILE THE PLO AGREED TO RECOGNIZE ISRAEL'S RIGHT TO EXIST IN PEACE THE ACCORD PAVES THE WAY FOR THE SIGNING SCHEDULED FOR MONDAY AT THE WHITE HOUSE OF A PACT THAT WOULD PROVIDE FOR PALESTINIAN SELFRULE IN GAZA AND JERICHO CLINTON CALLED THE ACCORD A VERY BRAVE AND COURAGEOUS THING HE TOLD CONGRESSIONAL LEADERS THAT WASHINGTON WOULD RENEW DIALOGUE WITH THE PLO SUSPENDED IN 1990 SCORES OF SOMALIS WERE KILLED AS US HELICOPTER GUNSHIPS OPENED FIRE THE ATTACK HELICOPTERS FIRED ON CROWDS OF SOMALIS INCLUDING WOMEN AND CHILDREN DURING FIERCE GUNBATTLES AFTER US AND PAKISTANI PEACEKEEPING TROOPS CAME UNDER ATTACK ACCORDING TO A UN MILITARY SPOKESMAN IN MOGADISHU RESIDENTS SAID MORE THAN 100 SOMALIS WERE KILLED OR WOUNDED DURING THREE HOURS OF FIGHTING A PAKISTANI SOLDIER WAS KILLED AND FIVE PAKISTANIS AND THREE US SOLDIERS WERE WOUNDED UN OFFICIALS SAID THE SENATE APPROVED A NONBINDING RESOLUTION CALLING ON THE CLINTON ADMINISTRATION TO PROVIDE BY OCT 15 A REPORT ON US GOALS IN SOMALIA NEW FIGHTING NEAR SARAJEVO KNOCKED OUT ELECTRICITY AND RUNNING WATER IN THE BOSNIAN CAPITAL FIGHTING ALSO WAS REPORTED IN THE CITY OF MOSTAR IN WASHINGTON BOSNIA'S MUSLIM PRESIDENT SAID HIS GOVERNMENT WAS READY TO RESUME PEACE NEGOTIATIONS IN GENEVA BUT INSISTED THAT SERBS AND CROATS MUST AGREE TO YIELD MORE TERRITORY DEFENSE SECRETARY ASPIN REJECTED A NEWS REPORT THAT ALLEGED THAT THE PENTAGON FAKED A 1984 DEMONSTRATION OF STAR WARS TECHNOLOGY IN WHICH A MISSILE DESTROYED A MOCK WARHEAD WHILE THERE WAS A RADAR BEACON ABOARD THE MOCK WARHEAD'S MISSILE HE SAID THERE WASN'T A RECEIVER ON THE INTERCEPTOR A REEMPLOYMENT SYSTEM IS PLANNED BY THE ADMINISTRATION IN A BID TO OVERHAUL THE WAY JOBLESS BENEFITS ARE MANAGED THE PROGRAM ENVISIONING A CENTRAL SYSTEM FOR FINANCIAL AID JOB SEARCH HELP AND TRAINING WOULD TARGET THOSE WHO LOST JOBS BECAUSE OF MILITARY CONVERSION IMPORTS OR TECHNOLOGY US AND MEXICAN OFFICIALS ARE DRAFTING PLANS TO CREATE AN AIRPOLLUTION CONTROL DISTRICT THAT WOULD COVER ABOUT TWO MILLION RESIDENTS LIVING AROUND EL PASO TEXAS AND IN THE MEXICAN CITY OF JUAREZ AT THE START THE PROPOSED DISTRICT WOULD FOCUS ON JOINT POLLUTION MONITORING AND VOLUNTARY CONTROL PROGRAMS THE SENATE ENDORSED A POLICY ON HOMOSEXUALS IN THE MILITARY THAT IS MORE RESTRICTIVE THAN CLINTON'S COMPROMISE PLAN THE 6333 VOTE LEFT INTACT THE COMPROMISE ALLOWING CLINTON TO END A BAN AGAINST HOMOSEXUALS BUT THE SENATE TOOK A TOUGHER STANCE STIPULATING FOR INSTANCE THAT HOMOSEXUALITY IS INCOMPATIBLE WITH MILITARY SERVICE CUBA SAID IT WOULD ALLOW TRADESPEOPLE IN MORE THAN 100 OCCUPATIONS TO GO INTO BUSINESS FOR THEMSELVES THE NEW REGULATIONS ARE A DEPARTURE FOR THE GOVERNMENT WHICH HAS CLUNG TO SOCIALISM AS MANY OTHER SOCIALIST NATIONS HAVE MOVED TOWARD FREEMARKET ECONOMIES THE FDA CLEARED THE WAY FOR WARNERLAMBERT TO SELL ITS ALZHEIMER'S DRUG COGNEX THE FIRST MEDICINE TO WIN GOVERNMENT APPROVAL FOR TREATING THE DEGENERATIVE BRAIN DISORDER THE ACTION HAD BEEN EXPECTED SINCE MARCH WHEN A PANEL SAID THE DRUG ALSO KNOWN AS TACRINE PRODUCED A SIGNIFICANT BENEFIT CLINTON IS EXPECTED TO ORDER MAJOR CHANGES IN THE WAY THE GOVERNMENT ISSUES REGULATIONS AN EXECUTIVE ORDER WHICH COULD BE RELEASED AS EARLY AS MONDAY WOULD GIVE VICE PRESIDENT GORE THE LEAD ROLE IN SHAPING REGULATORY PRIORITIES AND SETTLING CLASHES BETWEEN AGENCIES NEW YORK'S FORMER CHIEF JUDGE RECEIVED A PRISON SENTENCE OF 15 MONTHS FOR HARASSING HIS FORMER LOVER SOL WACHTLER HAD PLEADED GUILTY IN MARCH TO A BIZARRE SERIES OF ACTIONS IN WHICH HE DISGUISED HIS IDENTITY AND AMONG OTHER THINGS THREATENED TO KIDNAP THE WOMAN'S DAUGHTER 9309100058 930910 A STUDIO IS TEACHING A TWANG OR TWO TO FOREIGN CROONERS BUT A SLOVAK COWBOY BOMBS PROVING NASHVILLE'S SOUND IS EASIER SAID THAN SUNG BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL NASHVILLE TENN A LOT OF PEOPLE SPEND TIME TRYING TO GET RID OF TWANGS COLIN CLARK A BRITISH DAIRYMAN IS SPENDING GOOD MONEY TO ACQUIRE ONE IN A ROOM HERE AT THE GARGANTUAN OPRYLAND HOTEL MR CLARK RUMBLES THROUGH THE LINES OF A COUNTRY TUNE ANYTIME A GOOD TIME CALLED ME/YOU COULD BET THAT I WOULD GO IMAGINE JOHNNY CASH FORCEFED ELOCUTION LESSONS BY PROF HENRY HIGGINS AND YOU GET SOME NOTION OF MR CLARK'S PROGRESS IT'S NOT QUITE THE NASHVILLE SOUND NOT YET THIS IS WHERE PATTY PARKER AND HER HUSBAND FRANK FARA COME IN THEY ARE OWNERS OF COMSTOCK RECORDS A TINY INDEPENDENT RECORD LABEL THAT SPECIALIZES FOR A FEE IN IMPARTING COUNTRY MUSIC'S TWANGY NUANCES AND LOVIN'ANDLOSIN' THEMES TO WOULDBE CROONERS FROM FOREIGN COUNTRIES BESIDES MR CLARK FROM ENGLAND'S BUCOLIC WEST SUSSEX REGION CURRENT CLIENTS INCLUDE A SWISS BANKER A SWISS LEGAL SECRETARY AND A KILTCLAD SCOTSMAN DOES THE WORLD NEED THIS SERVICE MR FARA THINKS SO HE IS CONVINCED COUNTRY MUSIC WILL SOON TAKE EUROPE BY STORM AND COMSTOCK'S COURSES WILL HELP PAVE THE WAY FOR THE FIRSTWAVE OF EUROPEAN COUNTRY MUSIC STARS ON A MORE PERSONAL LEVEL MR CLARK CURRENTLY FINISHING UP HIS FOURTH COMSTOCK SESSION HAS ALREADY SOLD SCORES OF SINGLES BACK AT THE DAIRY IN WEST SUSSEX THESE ARE SCORES MORE THAN HE ORIGINALLY COUNTED ON AND HE SAYS GRINNING AN AWSHUCKS GRIN I'M VIRTUALLY KNOWN AS THE BRITISH JOHNNY CASH TWANGS IN THE NASHVILLE VERNACULAR AIN'T CHEAP NOR EASY THE BASIC COMSTOCK COURSE COSTS 4500 THOUGH IT INCLUDES REHEARSAL AND RECORDING OF TWO ORIGINAL SONGS WITH AN AUTHENTIC NASHVILLE BAND AND THE PROMISE TO DISTRIBUTE THE RESULT TO RADIO STATIONS AND REVIEWERS ELOCUTION DIFFICULTIES ARE ANOTHER MATTER MR FARA DIGS OUT A TAPE SENT OVER BY A SLOVAK SINGER THAT SOUNDS MORE OR LESS LIKE THIS DUN'T BELIEF HEEM ANYTING HE SAY/YOU SHALL NEBER CHEN HEEM AND I PLIZ YOU NOT TO TRRRRY EEF YOU VANT HIM BECK YOU'LL LET HEEM KNOW YOU WHY THIS ISN'T THE WORST HE'S HEARD MR FARA MUSES THAT AN AMAZING NUMBER 40 OR MORE DON'T REALIZE THEY CAN'T SING THEY HAVE A TOTAL DISREGARD OF THEIR OWN LACK OF TALENT STILL COUNTRY MUSIC IS A WORLD OF ETERNAL HOPE IF A COALMINER'S DAUGHTER CAN BECOME A COUNTRYSINGING MILLIONAIRE WHY NOT AN OLAF FROM OSLO COMSTOCK HASN'T FOUND THE NEXT GARTH BROOKS BUT IT CLAIMS SOME LIMITED SUCCESSES COMSTOCK TRAINEES INGER NORDSTROM AND HER RHINESTONE BAND GOT RAPTUROUS PUBLICITY AND A STRING OF GIGS IN THEIR NATIVE SWEDEN AFTER BEING NOMINATED FOR A MINOR MUSIC AWARD IN NASHVILLE AND RICK DEAN A DUTCH SINGER OPENED FOR EMMYLOU HARRIS WHEN SHE PLAYED THE NETHERLANDS LAST YEAR AND THERE ARE SIGNS THAT EUROPE WHERE COUNTRY MUSIC HAS NEVER ENJOYED MORE THAN A CULT FOLLOWING IS BEGINNING TO WARM UP TO THE GENRE SOME US COUNTRY HITS LIKE ACHYBREAKY HEART HAVE DONE WELL THERE OF LATE AND THE COUNTRY MUSIC ASSOCIATION RECENTLY OPENED AN INTERNATIONAL DEVELOPMENT OFFICE AT ITS NASHVILLE HEADQUARTERS IT ONLY FOLLOWS SAYS MR FARA THAT IF COUNTRY MUSIC TAKES OFF ABROAD SOME FOREIGN CROONER WILL EVENTUALLY MAKE IT BIG IN THE US IT'S GOING TO BE IMPOSSIBLE TO KEEP EUROPEANS OUT OF OUR MUSIC SYSTEM HE SAYS NOT EVERYBODY SHARES THIS UNBRIDLED ENTHUSIASM AND SOME WORRY THAT PAYYOUROWNWAY INDEPENDENTS LIKE COMSTOCK ARE SIMPLY SELLING FALSE HOPE TO ANYBODY WITH THE MONEY TO PAY FOR A SESSION SAYS BARRY MCCLOUD A BRITISH GUITAR PLAYER AND SONGWRITER WHO LIVES IN NASHVILLE FOR ANY EUROPEAN TO RECORD HERE IS AN EGO TRIP YOU HAVE AS MUCH CHANCE OF MAKING IT AS OF FLYING TO THE MOON ONETIME PERFORMERS MR FARA AND MS PARKER FOUND THEIR MARKET NICHE AFTER THEY STARTED PRODUCING RECORDS FOR FELLOW BAR BANDS SIX YEARS AGO THEY TOOK ON A BRITISH SINGER WHO HAD HEARD ABOUT THEM FROM A TOURING CANADIAN BAND AND WORD SPREAD QUICKLY THROUGH THE EUROPEAN COUNTRY UNDERGROUND THESE DAYS COMSTOCK FINDS ITSELF SCRAMBLING TO LINE UP INTERPRETERS TO TRANSLATE THE SLEW OF FAXES AND LETTERS IT GETS FROM ASPIRANTS WHO WANT TO SING COUNTRY BUT WHO WRITE IN CZECH GERMAN FRENCH AND OTHER LANGUAGES AND DESPITE CRITICISM THAT INDEPENDENTS ARE ONLY IN IT FOR THE MONEY MR FARA SAYS COMSTOCK REJECTS LARGE NUMBERS OF APPLICANTS ACCENTS AND UNMELODIOUS VOICES AREN'T THE ONLY BARRIERS A BRITISH BAND SENT MR FARA AN AUDITION TAPE OF AN ORIGINAL SONG CALLED COWBOY ZOMBIE IT WENT LIKE THIS THEY SAID HE WAS TOUGH BUT SO IS FATE/THEY BLEW OUT HIS BRAINS WITH A 38/SOME THINGS ARE BETTER THAN BEING DEAD/HE'S A COWBOY ZOMBIE WITH A HOLE IN HIS HEAD MR FARA UPON HEARING THE TAPE WENT LIKE THIS THUMBS DOWN FOR MR CLARK INTRODUCED TO COMSTOCK BY AN ENGLISH TALENT AGENT IN 1989 TALK OF BEING EXPLOITED IS NONSENSE HE HAS DEVOTED FOUR OF HIS PAST FIVE ANNUAL VACATIONS TO COMSTOCK SESSIONS SETTING ASIDE ALMOST HALF OF HIS 320 TAKEHOME PAY EACH WEEK TO FUND HIS PILGRIMAGES WITH THIS TRIP HE HAS AMASSED ENOUGH MATERIAL FOR AN ALBUM ON COMPACT DISC ALTHOUGH IT WILL TAKE HIM UNTIL NEXT YEAR TO SAVE THE 4500 HE NEEDS TO PRODUCE IT OVER A BEER MR CLARK POINTS OUT THAT A LONDON RECORDING SESSION WOULD HAVE COST 8000 MORE THAN THE PRICE OF HIS COMSTOCK SESSION PLANE TICKET AND LIVING EXPENSES ALL ROLLED TOGETHER AND NOT ONLY DOES HE GET HIGHERQUALITY MUSICIANS TO WORK WITH BUT BRITISH STATIONS ARE MORE APT TO PLAY A RECORD IF IT'S FROM NASHVILLE HE SAYS MERELY RECORDING HERE EARNED HIM AN INTERVIEW ON A SUSSEX TELEVISION SHOW TRUE IT AIRED AT 4 AM BUT HIS PARENTS TAPED IT HE SAYS ON A RECENT DAY MR CLARK BOUNDS INTO COMSTOCK'S STUDIOS DRESSED IN A TWOTONE BLACK AND WHITE WESTERN SHIRT HE HAS SPENT MONTHS REHEARSING HIS TWO SONGS WITH HELP FROM MS PARKER WHO HAS DRILLED HIM VIA TAPES AND LETTERS IN THE LAZY COUNTRYWESTERN WAY OF ENUNCIATION MR CLARK SWITCHES ON A PRACTICE TAPE HE'S MADE OF ONE OF THE SONGS IT'S TIME I SETTLED DOWN EYEBROWRAISING CHORDS SQUAWK OUT OF THE TAPE PLAYER OUR CHARTS ARE UHM A LITTLE DIFFERENT FROM THIS VERSION A STUDIO KEYBOARD PLAYER TELLS HIM DIPLOMATICALLY WE'LL GO WITH THE CHART FINDING THE RIGHT KEY AND TEMPO MR CLARK SINGS LUSTILY AS IN PAST YEARS COMSTOCK WILL PRESS MR CLARK'S WORK ONTO SINGLES EVERYONE AT THE DAIRY COLLECTS THEM SAYS HIS GIRLFRIEND DENISE CRAGG AND SHIP ABOUT 400 COPIES TO US RADIO STATIONS AND REVIEWERS MOSTLY IN SMALL MARKETS ANOTHER 200 WILL GO TO COUNTRYSHOW HOSTS AND REVIEWERS IN EUROPE MR FARA SAYS PLAY LISTS COMPILED BY COMSTOCK SHOW THAT MR CLARK'S EARLIER SINGLES HAVE GRACED THE AIRWAVES IN SUCH COUNTRYWESTERN HOTBEDS AS TRONDHEIM NORWAY SKJERN DENMARK LOMMEL BELGIUM AND DULUTH MINN THAT MAY NOT SOUND LIKE A ROAD MAP TO THE GRAND OLE OPRY BUT IT STILL BEATS HIS MILK ROUTE AFTER A LATE NIGHT GIG ON THE SUSSEX PUB CIRCUIT AT LEAST I CAN SAY I'VE DONE IT HE SAYS 9309100057 930910 CARMIKE CINEMAS ACQUISITION COLUMBUS GA CARMIKE CINEMAS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THEATERS IN THE NORTHEAST FROM A PRIVATELY HELD COMPANY THE MOVIE THEATER OPERATOR WOULD NEITHER DISCLOSE THE NUMBER OF THEATERS IT AGREED TO ACQUIRE NOR IDENTIFY THE SELLER A COMPANY SPOKESMAN SAID THE PURCHASE WOULD BE FOR LESS THAN 20 MILLION BUT SPECIFIC TERMS PROBABLY WON'T BE DISCLOSED FOR TWO TO THREE WEEKS 9309100056 930910 HARD ROCK HARVEY'S HOTEL & CASINO PLAN VENTURE IN LAS VEGAS A WALL STREET JOURNAL NEWS ROUNDUP THE HARD ROCK CAFE CHAIN'S PETER A MORTON IS MOVING AHEAD WITH PLANS FOR AN 80 MILLION LAS VEGAS HOTEL AND CASINO AFTER LANDING A NEW PARTNER HARVEY'S HOTEL & CASINO OF LAKE TAHOE NEV THE PRIVATELY OWNED CASINO COMPANY REPLACES THE HARRAH'S CASINO HOTELS UNIT OF PROMUS COS AS MR MORTON'S PARTNER IN THE LAS VEGAS PROJECT THE ORIGINAL PARTNERSHIP BROKE DOWN OVER ISSUES OF OPERATING CONTROL A SPOKESMAN FOR THE RESTAURATEUR SAID MR MORTON A COFOUNDER OF THE HARD ROCK CHAIN IS CHAIRMAN AND OWNER OF HARD ROCK AMERICA INC BASED IN LOS ANGELES HE WILL RETAIN A CONTROLLING INTEREST IN THE VENTURE WITH HARVEY'S WHILE MOST OTHER ASPECTS OF THE 325ROOM HOTEL AND CASINO PROJECT REMAIN THE SAME HARVEY'S OPERATOR OF THE LAKE TAHOE PROPERTY SINCE 1944 ALSO WILL OPERATE THE HARD ROCK VENTURE PLANS ARE FOR A 12STORY TOWER NEXT DOOR TO THE EXISTING LAS VEGAS HARD ROCK CAFE LIKE THE CHAIN'S RESTAURANTS THE GAMING COMPLEX WILL FEATURE ROCK MEMORABILIA A REVOLVING VINTAGE CADILLAC OVER THE BAR AND GUITARSHAPED ROULETTE TABLES ARE ON THE DRAWING BOARD CONSTRUCTION IS EXPECTED TO BEGIN LATER THIS YEAR WITH OPENING PLANNED FOR DECEMBER 1994 FINANCING FOR THE PROJECT HAS BEEN OBTAINED FROM FIRST INTERSTATE BANCORP'S FIRST INTERSTATE BANK OF NEVADA THE SPOKESMAN SAID 9309100055 930910 BUSINESS BRIEF CHRISTIE'S INTERNATIONAL PLC AUCTION HOUSE PRETAX PROFIT NEARLY TRIPLED IN FIRST HALF ARTAUCTION HOUSE CHRISTIE'S INTERNATIONAL PLC REPORTED THAT PRETAX PROFIT NEARLY TRIPLED IN THE FIRST HALF PRETAX PROFIT IN THE PERIOD ROSE TO 109 MILLION OR 38 CENTS A SHARE FROM 38 MILLION OR 12 CENTS A SHARE IN THE SAME PERIOD IN 1992 THE COMPANY SAID AUCTION SALES ROSE 14 IN STERLING BUT SHOWED A MODEST DECLINE TO 503 MILLION FROM 519 MILLION IN DOLLAR TERMS ACCORDING TO THE COMPANY CHRISTIE'S SAID RECOVERING MARKETS INCLUDED JEWELRY AND IMPRESSIONIST AND CONTEMPORARY PAINTINGS AND SCULPTURE A SECTOR IN WHICH SALES ROSE 57 FROM LAST YEAR THE COMPANY CITED AN IMPROVING ART MARKET COST CONTROLS AN INCREASE IN THE COMMISSION IT CHARGES BUYERS AND REVENUE FROM ITS NEW ARTDEALER UNIT SPINK & SON AS REASONS FOR THE UPTURN CHRISTIE'S PURCHASED SPINK & SON A DEALER IN STAMPS AND ASIAN ART LAST SPRING 9309100054 930910 WHO'S NEWS BRUNSWICK CORP BRUNSWICK CORP LAKE FOREST ILL JOHN P REILLY 50 YEARS OLD FORMERLY PRESIDENT OF TENNECO AUTOMOTIVE A UNIT OF TENNECO INC WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MARINE POWER PLEASURE BOATING AND RECREATION CONCERN EFFECTIVE OCT 15 HE SUCCEEDS JACK F REICHERT 62 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9309100053 930910 BUSINESS BRIEF MACMILLAN BLOEDEL LTD CANADIAN COMPANY TO SELL NINE MILLION COMMON SHARES MACMILLAN BLOEDEL LTD SAID IT AGREED TO SELL NINE MILLION COMMON SHARES FOR 21625 CANADIAN DOLLARS US1640 EACH OR C1946 MILLION TO A SYNDICATE OF CANADIAN UNDERWRITERS THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING ON THE TORONTO STOCK EXCHANGE WHERE THE VANCOUVER BRITISH COLUMBIA FOREST PRODUCTS COMPANY'S SHARES CLOSED AT C22375 UP 875 CANADIAN CENTS THE ISSUE IS THE LATEST IN A SPATE OF SUCH TRANSACTIONS BY CANADIAN FORESTPRODUCT COMPANIES WHICH HAVE SOUGHT TO CAPITALIZE ON STRONG LUMBER PRICES AND INDICATIONS THAT MARKETS FOR SOME PAPER PRODUCTS MAY BE STARTING TO FIRM AFTER A LONG SLUMP MACMILLAN BLOEDEL SAID IT WILL USE NET PROCEEDS OF THE SHARE ISSUE FOR CAPITAL EXPENDITURES OTHER INVESTMENTS AND DEBT REPAYMENT THE ISSUE IS EXPECTED TO CLOSE ON SEPT 28 SUBJECT TO REGULATORY APPROVALS THE SHARES WON'T BE OFFERED OR SOLD IN THE US SUBJECT FOR CERTAIN EXCEPTIONS 9309100052 930910 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY WILL REPUBLICANS TAKE A HIKE ON NAFTA IF THE VOTE IS CLOSE CONCERNS GROW AMONG TRADEPACT SUPPORTERS THAT IN A TIGHT BATTLE GOPERS WOULD DELIVER JUST ENOUGH HOUSE VOTES SO THEY COULD NOT BE ACCUSED OF FOSTERING GRIDLOCK BUT NOT QUITE ENOUGH TO GIVE CLINTON A WIN THE TEMPTATION WILL BE VERY STRONG TO EMBARRASS THE PRESIDENT SAYS GARY HUFBAUER A TRADE ANALYST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS PRONAFTA GOP REP DREIER SAYS THERE'S A SENSE THAT SOME REPUBLICANS WILL SAY THAT THE SECOND AND THIRDRANKING DEMOCRATS REPS GEPHARDT AND BONIOR AREN'T FOR THIS SO WHY SHOULD WE HAND BILL CLINTON A VICTORY REPUBLICAN BACKERS OF THE PACT FAULT CLINTON FOR A LACK OF LEADERSHIP GOP REP KOLBE BACKS AWAY FROM EARLIER PREDICTIONS THAT REPUBLICANS COULD DELIVER 120 HOUSE VOTES THE PROISRAEL LOBBY SCRAMBLES TO REDEFINE ITS ROLE AFTER PEACE THE AMERICANISRAEL PUBLIC AFFAIRS COMMITTEE WHICH LAST SUMMER WAS ON THE OUTS WITH ISRAEL'S NEW LABOR GOVERNMENT BRAGS THAT ITS PRESIDENT WAS IN ISRAEL MEETING WITH RABIN AS THE HISTORIC ACCORD WITH THE PLO WAS BEING APPROVED AFTER DECADES OF DEMONIZING THE PLO AIPAC'S NEWSLETTER SAYS THE ACCORD GIVES PALESTINIANS THE GOLDEN OPPORTUNITY TO RUN THEIR OWN AFFAIRS SOME ARAB DIPLOMATS TALK ABOUT TAKING FUNDS FROM THE MORE THAN 5 BILLION IN AID THAT GOES TO ISRAEL AND EGYPT TO USE TO BOLSTER THE PALESTINIANS THE PROISRAEL LOBBY'S NEW LINE IN CONGRESS ISRAEL NEEDS US AID MORE THAN EVER NOW THAT THE JEWISH STATE IS TAKING RISKS FOR PEACE THE FED SHRUGS OFF WORRIES THAT THE RECOVERY IS FALTERING LAST MONTH'S DOWNTURN IN PAYROLLS IS VIEWED AS A TEMPORARY HICCUP OUTSIDE OF CALIFORNIA THE FED FIGURES THE JOBLESS RATE HAS FALLEN TO BELOW 64 FROM 76 LAST SUMMER FLOOD DAMAGE COULD DEPRESS GROWTH THIS QUARTER BUT OFFICIALS ARE HEARTENED BY THE PACE OF CONSUMER SPENDING AND BUSINESS INVESTMENT THIS ISN'T THE BOOM SOME PEOPLE MIGHT LIKE TO SEE BUT IT IS RESPECTABLE GROWTH SAYS SAN FRANCISCO FED PRESIDENT ROBERT PARRY WITH INFLATION LOW THE UNDERLYING RATE HAS BEEN RUNNING AT ABOUT 25 OVER THE PAST FIVE MONTHS AND THE BOND MARKET STRONG HIGHER INTEREST RATES ARE NOT LIKELY ANY TIME SOON ALSO ENCOURAGING THE FED TO KEEP RATES LOW WHAT OFFICIALS SEE AS THE COOLING EFFECTS OF THE DEFICITREDUCTION LAW BUSINESS IS BUSINESS WHILE CLINTON MEDIA ADVISER MANDY GRUNWALD HAS PRIVATELY WARNED THE PRESIDENT OF THE POLITICAL PERILS OF PURSUING THE FREETRADE PACT WITH MEXICO HER FIRM WILL PRODUCE ADS FOR USA NAFTA A PRONAFTA BUSINESS GROUP MEANWHILE THE FIRM OF HER FORMER PARTNER AND FELLOW CLINTON ADVISER FRANK GREER IS PRODUCING ANTINAFTA SPOTS REPUBLICAN WARINESS OF PEROT GROWS SEN COCHRAN WHO THINKS PEROT WANTS TO RUN IN THE 1996 GOP PRESIDENTIAL PRIMARIES TERMS HIM A DEMAGOGUE AND A HOAX GOP POLLSTER NEIL NEWHOUSE SAYS THE PARTY RISKS LOSING ITS IDENTITY IF ITS IMAGE BLURS WITH PEROT'S IN THE PUBLIC MIND I'M WITH ROSS' DOES NOTHING FOR THE REPUBLICAN PARTY HE SAYS CLINTON MAY USE HIS UN GENERAL ASSEMBLY SPEECH LATER THIS MONTH TO PRESENT THE RATIONALE FOR SENDING 25000 US PEACEKEEPING TROOPS TO BOSNIA IF A SETTLEMENT IS SIGNED BUT STATE DEPARTMENT OFFICIALS REMAIN CONCERNED THAT WITH HEALTH CARE AND NAFTA CLAMORING FOR HIS ATTENTION CLINTON MAY NOT HAVE THE TIME POLITICAL CAPITAL OR WILL TO FOLLOW THROUGH ON BOSNIA ALREADY TURNING TO NEXT YEAR'S BUDGET THE WHITE HOUSE STRAINS TO COPE WITH NEW SPENDING CEILINGS THE NEW DEFICITREDUCTION LAW FREEZES TOTAL APPROPRIATIONS FOR FISCAL 1995 WHICH BEGINS OCT 1 1994 AT 1994 LEVELS EVEN WITH A SHRINKING DEFENSE BUDGET THAT DOES NOT LEAVE MUCH WIGGLE ROOM CLINTON AIDES SAY THEY PONDER WHICH OF HIS MANY INVESTMENT PRIORITIES TO PUSH IN THE FEBRUARY BUDGET CLINTON BEGINS THE TOUGH SALES JOB FOR HIS HEALTHOVERHAUL PROPOSAL LAYING THE GROUNDWORK FOR HIS SEPT 22 ADDRESS TO THE NATION THE WHITE HOUSE IS ALLOWING REPRESENTATIVES OF HOSPITAL DOCTOR INSURANCE BUSINESS AND CONSUMER GROUPS TO PEEK AT A DRAFT OF THE PLAN NEXT WEEK IT PLANS A SERIES OF NEWS BRIEFINGS AND A HEALTH CARE UNIVERSITY ON CAPITOL HILL ON SEPT 20 AND 21 MANY INTEREST GROUPS INCLUDING THE POWERFUL AMA ARE LIKELY TO MUTE THEIR INITIAL CRITICISM OF THE CLINTON PLAN CALLING IT AN IMPORTANT STEP BEFORE CRITICIZING SPECIFIC DETAILS THE CONSUMER GROUP CITIZEN ACTION SUMMONS ITS 50 STATE DIRECTORS AND BOARD MEMBERS TO DECIDE WHETHER TO SUPPORT OR OPPOSE THE PLAN AND TO WHAT DEGREE CLINTON PLANS AN EARLYOCTOBER BUS TRIP WITH HILLARY AND POSSIBLY AL AND TIPPER GORE MINOR MEMOS AT A CLINTON EDUCATION EVENT IN DELAWARE A STUDENT FORGETS TO INTRODUCE THE PRESIDENT INSTEAD TURNING TO HIM ON THE PODIUM AND SAYING OK YOU'RE ON STEPHANOPOULOS HELPS BRING DOWN THE GOVERNMENT STEFANOS STEPHANOPOULOS THAT IS A MEMBER OF GREECE'S PARLIAMENT GEORGE SAYS IT'S A PRETTY SAFE ASSUMPTION THEY ARE RELATED GORE'S REPORT SUGGESTS NO CHANGES IN THE WHITE HOUSE ITSELF BECAUSE IT IS REGULARLY REINVENTED WITH EACH CHANGE OF ADMINISTRATION 9309100051 930910 AMERICA WEST AUGUST TRAFFIC PHOENIX AMERICA WEST AIRLINES SAID ITS AUGUST TRAFFIC DECREASED 81 THE AIRLINE FLEW 11 BILLION REVENUE PASSENGER MILES COMPARED WITH 12 BILLION IN AUGUST 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 741 FROM 703 SEPARATELY THE AIRLINE SAID IT IS OFFERING DISCOUNTS OF AS MUCH AS 30 ON LEISURE FARES FOR PASSENGERS TRAVELING THROUGH DEC 15 TICKETS MUST BE PURCHASED BY OCT 27 AND 14 DAYS IN ADVANCE DELTA AIR LINES AND AMR CORP'S AMERICAN AIRLINES SAID THEY WOULD MATCH THE FARE SALE IN COMPETITIVE MARKETS AS THEY DID WITH PRIOR SALES 9309100050 930910 WHEELINGPITTSBURGH PRICE BOOST WHEELING WVA WHEELINGPITTSBURGH STEEL CORP SAID IT WILL INCREASE BY 5 THE BASE PRICE AND SELECTED EXTRAS ON TIN MILL PRODUCTS EFFECTIVE OCT 3 THE BOOST WILL COVER TINPLATE TINFREE STEEL TINCOATED SHEET AND BLACK PLATE 9309100049 930910 BUSINESS BRIEF NELLCOR INC HOSPITAL EQUIPMENT MAKER SEES FLAT QUARTERLY PROFIT NELLCOR INC HAYWARD CALIF SAID ITS FISCAL FIRSTQUARTER NET INCOME IS EXPECTED TO BE FLAT COMPARED WITH ITS YEARAGO FIRST QUARTER BECAUSE OF A ONETIME CHARGE RELATED TO A COMPANY CONSOLIDATION THE HOSPITAL EQUIPMENT MAKER SAID NET INCOME FOR THE QUARTER ENDING OCT 3 IS EXPECTED TO MATCH THE YEARAGO NET INCOME OF 48 MILLION OR 29 CENTS A SHARE ON SLIGHTLY HIGHER REVENUE THAN THE YEARAGO REVENUE OF 486 MILLION NELLCOR SAID IT WAS COMBINING ITS INSTRUMENTS AND MONITORING SYSTEMS DIVISIONS INTO ONE OPERATION AS WELL AS CONSOLIDATING THE DIVISIONS' TWO MANUFACTURING OPERATIONS THE REORGANIZATION WILL RESULT IN THE DISMISSAL OF 25 EMPLOYEES OR 2 OF ITS WORK FORCE NELLCOR SAID THE COMPANY SAID IT WAS MAKING THE CHANGES TO MORE EFFECTIVELY USE ITS RESOURCES IN LATE OVERTHECOUNTER TRADING NELLCOR WAS UP 150 AT 2150 A 75 INCREASE 9309100048 930910 WHAT'S NEWS BUSINESS AND FINANCE BOND PRICES PLUNGED AFTER A SELLOFF THAT BEGAN OVERSEAS SWEPT THROUGH THE US BOND MARKET THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL NEARLY 1 1/2 POINTS ITS YIELD ROSE TO 596 ANALYSTS SAID FOREIGN INVESTORS BEGAN DUMPING US BONDS OVERNIGHT ON RUMORS THAT CONGRESS PLANNED TO CONSIDER REIMPOSING A 30 WITHHOLDING TAX ON FOREIGN INVESTMENTS IN US TREASURYS THE CLINTON HEALTH PLAN WOULD REQUIRE PHARMACEUTICAL FIRMS TO GIVE AT LEAST A 15 REBATE TO THE GOVERNMENT FOR DRUGS UNDER MEDICARE AND MEDICAID ACCORDING TO A DRAFT PROPOSAL GERMANY'S CENTRAL BANK LOWERED ITS TWO KEY LENDING RATES TRIGGERING A ROUND OF INTERESTRATE CUTS THROUGHOUT EUROPE THE RATE REDUCTIONS WERE WELCOME NEWS TO THE US AND EUROPE BUT MAY BE TOO SMALL TO GIVE MUCH STIMULUS TO EUROPE'S ECONOMIES PARAMOUNT AND VIACOM ARE WEIGHING A STOCK SWAP THAT WOULD CREATE AN ENTERTAINMENT GIANT ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS DOW CORNING AND OTHER SILICONE BREASTIMPLANT MAKERS PROPOSED A 475 BILLION SETTLEMENT OF THOUSANDS OF LAWSUITS FILED BY WOMEN WHO SAY THEY WERE HARMED BY THE DEVICES CONTINENTAL AIR PLANS A SIXMONTH TEST OF A LOWFARE NOFRILLS SERVICE PATTERNED AFTER SOUTHWEST AIRLINES THE EXPERIMENT WILL INVOLVE SEVERAL CITIES ON THE EAST COAST STARTING OCT 1 TWO OF KODAK'S CEO CANDIDATES RULED THEMSELVES OUT OF THE RACE AS THE COMPANY'S BOARD BEGAN REVIEWING A SHORT LIST OF EXECUTIVES FORD PLANS TO RAISE THE BASE PRICE OF 1994MODEL VEHICLES BETWEEN 09 ON ITS LEAST EXPENSIVE VEHICLES AND 133 ON CERTAIN BESTSELLING PICKUPS US COMPANIES EXPECT TO INCREASE CAPITAL SPENDING 71 THIS YEAR A SURVEY TAKEN IN JULY AND AUGUST SHOWS INSURANCE REGULATORS MAY CONSIDER RULES FOR MARKETING LIFE INSURANCE POLICIES AMID CONCERN THAT THE PUBLIC IS BEING MISLED BY INCONSISTENT AND OFTEN INACCURATE PRICE ESTIMATES CADBURY SCHWEPPES AGREED TO BUY A&W BRANDS OF THE US FOR 334 MILLION SIGNALING THE BRITISH BEVERAGE MAKER'S INTENT TO BECOME A BIG PLAYER IN THE US SOFTDRINK BUSINESS A VERDICT AGAINST TWO TEXACO UNITS WAS EFFECTIVELY SET ASIDE BY A JUDGE A WEEK AFTER THE JURY IN THE CASE AWARDED A TINY UTAH GOLD MINING COMPANY DAMAGES OF 4042 MILLION INVESTORS CAN'T COLLECT PUNITIVE DAMAGES FOR FRAUD UNLESS THEY PROVE THEY ACTUALLY RELIED ON MISREPRESENTATIONS IN MAKING INVESTMENT DECISIONS THE CALIFORNIA SUPREME COURT RULED NESTLE SAID ITS CONSOLIDATED PROFIT IN THE FIRST HALF OF THE YEAR ROSE 6 FROM THE SAME PERIOD A YEAR AGO THE SWISS FOOD COMPANY SAID IT EXPECTS A SATISFACTORY PROFIT RISE FOR 1993 AMERICAN GENERAL'S MICHAEL J POULOS RETIRED UNEXPECTEDLY AS VICE CHAIRMAN TO RUN ANOTHER COMPANY HE IS THE SECOND TOP EXECUTIVE TO LEAVE THE INSURANCE AND FINANCIAL SERVICES COMPANY IN THE PAST FIVE WEEKS BONDS LEHMAN BROTHERS TREASURY INDEX 564146 OFF 6044 COMMODITIES OIL 1697 A BARREL OFF SIX CENTS DOW JONES FUTURES INDEX 12710 UP 084 SPOT INDEX 12244 UP 065 DOLLAR 10540 YEN OFF 020 16005 MARKS OFF 00125 9309100047 930910 INTERNATIONAL STANDARD CHARTERED IN VIETNAM BANGKOK THAILAND VIETNAM AGREED TO ALLOW STANDARD CHARTERED BANK A UNIT OF STANDARD CHARTERED PLC OF THE UK TO OPEN A BRANCH IN HANOI VIETNAMESE STATERUN RADIO REPORTED WHEN THE BRANCH OPENS NEXT YEAR IT WILL BE THE FIRST BRITISH BANK TO OPERATE IN THE COUNTRY THE OFFICIAL VOICE OF VIETNAM SAID A FRENCH BANK TWO THAI BANKS AND AN AUSTRALIAN BANK ALREADY OPERATE IN VIETNAM VIETNAMESE BANKS ALSO RUN JOINT VENTURES WITH INDONESIAN MALAYSIAN AND SOUTH KOREAN INTERESTS 9309100046 930910 TECHNOLOGY BRIEF ARCH COMMUNICATIONS GROUP INC NATIONAL PAGING IS PLANNED BELOW CURRENTSYSTEM PRICES ARCH COMMUNICATIONS GROUP INC A SMALL PAGER COMPANY SAID IT WILL DEVELOP A NATIONAL PAGING SYSTEM BY NEXT MARCH THAT WILL BE SUBSTANTIALLY BELOW PRICES OF EXISTING NATIONAL SYSTEMS ARCH BASED IN WESTBOROUGH MASS SAID ITS SERVICE WILL USE A NEW PAGER FROM MOTOROLA INC THAT SCANS FREQUENCIES RATHER THAN JUST CHECKING A SINGLE FREQUENCY FOR MESSAGES THE TECHNOLOGY LETS ARCH SIGN UP OTHER PAGER SYSTEMS TO CARRY ITS NATIONWIDE PAGING WE WON'T HAVE TO INVEST SIGNIFICANT CAPITAL TO CONSTRUCT A NATIONAL NETWORK THAT WILL PROVIDE US WITH LOWER COSTS SAID CE BAKER JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE PAGING UNITS OF U S WEST CORP AND AMERITECH INC HAVE ALREADY AGREED TO JOIN ARCH'S NATIONWIDE NETWORK THE COMPANY SAID CURRENTLY NATIONWIDE PAGING IS OFFERED BY SKYTEL A UNIT OF MOBILE TELECOMMUNICATION TECHNOLOGIES CORP AND MOBILECOMM A UNIT OF BELLSOUTH CORP 9309100045 930910 TECHNOLOGY BAYER'S MILES INC FORMS UNIT PITTSBURGH MILES INC THE US ARM OF GERMAN PHARMACEUTICAL GIANT BAYER AG SAID IT WILL FORM A BIOLOGICAL PRODUCTS BUSINESS UNIT FOR MANUFACTURING AND MARKETING PLASMABASED PRODUCTS AND BIOTECHNOLOGICALLY DERIVED THERAPEUTICS MILES SAID ITS GOAL IS TO ACHIEVE MORE THAN DOUBLE ITS CURRENT 500 MILLION IN ANNUAL SALES OF BIOLOGICAL PRODUCTS BY THE END OF THE DECADE 9309100044 930910 BUSINESS BRIEF BANK SOUTH CORP ACCORDS ARE SET TO ACQUIRE CHATTAHOOCHEE AND MERCHANT BANK SOUTH CORP SAID IT AGREED TO ACQUIRE TWO ATLANTA BANKS FOR STOCK VALUED AT ABOUT 66 MILLION UNDER A LETTER OF INTENT ATLANTABASED BANK SOUTH SAID IT WOULD PAY 1150 IN STOCK FOR EACH SHARE OF CHATTAHOOCHEE BANCORP THE COMPANY PLANS TO ISSUE CHATTAHOOCHEE 32 MILLION BANK SOUTH SHARES VALUED AT ABOUT 46 MILLION UNDER A SEPARATE LETTER OF INTENT BANK SOUTH SAID IT WOULD PAY 975 IN STOCK FOR EACH SHARE OF CLOSELY HELD MERCHANT BANK CORP IT PLANS TO ISSUE MERCHANT 14 MILLION SHARES VALUED AT 20 MILLION BOTH TRANSACTIONS THE PRICES OF WHICH MAY BE ADJUSTED UNDER CERTAIN CIRCUMSTANCES REQUIRE REGULATORY APPROVAL AMONG OTHER CONDITIONS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CHATTAHOOCHEE SHARES CLOSED AT 1024 UP 125 OR 14 IN NEW YORK STOCK EXCHANGE TRADING BANK SOUTH SHARES CLOSED AT 15375 DOWN 125 CENTS 9309100043 930910 INTERNATIONAL COATS VIYELLA'S PROFIT GROWS LONDON BRITISH TEXTILES MANUFACTURER COATS VIYELLA PLC REPORTED A 35 INCREASE IN FIRSTHALF PRETAX PROFIT AND SAID IT'S WELL ON TRACK TO ACHIEVE SIGNIFICANTLY IMPROVED RESULTS IN 1993 COATS VIYELLA'S PRETAX PROFIT OF 628 MILLION 968 MILLION COMPARED WITH 464 MILLION A YEAR EARLIER IT WAS WELL ABOVE MARKET FORECASTS THE 1992 RESULTS WERE RESTATED TO COMPLY WITH NEW ACCOUNTING STANDARDS SALES ROSE 147 TO 117 BILLION FROM 102 BILLION 9309100042 930910 BUSINESS BRIEF PT BARITO PACIFIC TIMBER INDONESIA FIRM'S SHARE OFFER IS 24 TIMES OVERSUBSCRIBED THE PUBLIC SHARE OFFERING OF PT BARITO PACIFIC TIMBER A BIG INDONESIAN TIMBER COMPANY WAS OVERSUBSCRIBED 24 TIMES THE UNDERWRITER SAID THE DOMESTIC PORTION OF THE OFFERING 51 OF THE 85 MILLION SHARES OFFERED WAS 92 TIMES OVERSUBSCRIBED WHILE THE FOREIGN PORTION 49 WAS 385 TIMES OVERSUBSCRIBED IN THE OFFERING THAT RAISED ABOUT 295 MILLION BARITO PACIFIC SOLD NEW SHARES AT 7200 RUPIAH 342 EACH THE 85 MILLION SHARES ARE EQUIVALENT TO 12 OF THE COMPANY'S EXPANDED SHAREHOLDING BARITO PACIFIC PICKED A GOOD TIME TO SELL SHARES PLYWOOD PRICES HAVE BEEN HIGH THIS YEAR MAKING SOME ANALYSTS VERY BULLISH ON THE COMPANY'S PROSPECTS AND THE JAKARTA STOCK EXCHANGE SURGED LAST MONTH AND HAS ATTRACTED INTEREST FROM US FUND MANAGERS LOOKING TO SHIFT SOME FUNDS TO EMERGING MARKETS THE COMPANY SAYS IT WILL USE SOME OF THE PROCEEDS FROM THE OFFERING TO RETIRE DEBT AND SOME FOR A PULP PROJECT IN SUMATRA 9309100041 930910 PEP BOYS OPENS SUPERCENTER PHILADELPHIA PEP BOYSMANNY MOE & JACK OPENED ITS FIRST WAREHOUSEFORMAT AUTOMOTIVE SUPERCENTER IN WARWICK RI THE COMPANY SAID IT EXPECTS TO OPEN 28 ADDITIONAL AUTOMOTIVE SUPERCENTERS DURING THE FISCAL YEAR ENDING JAN 31 INCLUDING ITS FIRST UNITS IN MISSOURI ILLINOIS AND INDIANA 9309100040 930910 BUSINESS BRIEF AMERICAN MEDICAL HOLDINGS INC CHARGE TOTALING 19 MILLION IS SET FOR FOURTH QUARTER AMERICAN MEDICAL HOLDINGS INC SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF 19 MILLION OR 25 CENTS A SHARE FOR THE EARLY RETIREMENT OF DEBT DURING LAST YEAR'S FOURTH QUARTER WHICH ENDED AUG 31 THE DALLASBASED HEALTHCARE COMPANY REPORTED NET INCOME OF 14 MILLION OR ONE CENT A SHARE ON 5628 MILLION IN REVENUE THOSE RESULTS INCLUDED A CHARGE OF 5 MILLION OR EIGHT CENTS A SHARE FROM RETIRING DEBT AMERICAN MEDICAL YESTERDAY SAID IT REPLACED ITS EXISTING BANK LINE WITH A LESS COSTLY 600 MILLION REVOLVING CREDIT FACILITY THE NEW LINE ALONG WITH THE PURCHASE OF OTHER COMPANY DEBT WILL RESULT IN ANNUALIZED PRETAX INTEREST SAVINGS OF ABOUT 14 MILLION THE COMPANY SAID AMERICAN MEDICAL HAS CUT ITS DEBT TO 13 BILLION FROM 31 BILLION SINCE THE COMPANY'S LEVERAGED BUYOUT IN 1989 IN LATE NEW YORK STOCK EXCHANGE TRADING AMERICAN MEDICAL'S SHARES WERE QUOTED UNCHANGED AT 12125 9309100039 930910 BUSINESS BRIEF AUTOTOTE CORP TELE CONTROL DEAL BOOSTS COMPANY'S POSITION TO 98 AUTOTOTE CORP SAID IT COMPLETED ITS ANNOUNCED 175 MILLION ACQUISITION OF A 73 INTEREST IN AN AUSTRIAN PROVIDER OF LOTTERY SYSTEMS THE NEWARK DEL COMPANY WHICH MANAGES OFFTRACK AND OTHER BETTING VENUES AND MAKES WAGERING EQUIPMENT SAID THE ACQUISTION OF THE STAKE IN VIENNABASED TELE CONTROL GMBH INCREASES ITS OWNERSHIP OF THE COMPANY TO 98 TELE CONTROL PROVIDES LOTTERY SYSTEMS TO CUSTOMERS IN CENTRAL AND NORTHERN EUROPE AND WAGERING SYSTEMS TO RACING ORGANIZATIONS IN GERMANY AND AUSTRIA AUTOTOTE SAID IT PAID 15 MILLION IN CASH FOR THE TELE CONTROL STAKE AND WILL PAY AN ADDITIONAL 25 MILLION IN 1994 AND TWO MORE CONTINGENT PAYMENTS OF AS MUCH AS 75 MILLION TOTAL BY 1996 THE COMPANY SAID IT FINANCED THE PURCHASE WITH A PORTION OF THE PROCEEDS FROM A RECENTLY COMPLETED PRIVATE PLACEMENT OF 40 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES 9309100038 930910 MARKETING BRIEF CBS INC BROADCASTERS TO FORM GROUP TO COVER WORLDWIDE NEWS CBS NEWS SAID IT WILL JOIN FORCES WITH SEVERAL INTERNATIONAL BROADCASTERS INCLUDING NEWS CORP'S 50OWNED EUROPEAN NEWS SERVICE BRITISH SKY BROADCASTING TO FORM A SATELLITE NEWSGATHERING CONSORTIUM TO COVER LIVE EVENTS IN EUROPE NORTHERN AFRICA AND THE MIDDLE EAST A KEY FEATURE OF THE VENTURE IS A FULLTIME SATELLITE TRANSPONDER FOR THE PARTNERS TO USE IN EXCHANGING MATERIAL ELIMINATING THE NEED TO LEASE SATELLITE TIME THE VENTURE WITH A BUDGET OF SEVERAL MILLION DOLLARS WILL ALSO HIRE SEVERAL EUROPEBASED EDITORIAL EMPLOYEES TO COORDINATE AND PRODUCE NEWS COVERAGE THE MATERIAL WILL BE EXCLUSIVE TO THE PARTNERS WHICH IN ADDITION TO CBS A UNIT OF CBS INC AND BSKYB INCLUDE BELGIUM'S VLAAMSE TELEVISIE MAATSCHAPPIJ WHICH IS OWNED BY NINE FLEMISH PUBLISHERS AND THE TOKYO BROADCASTING SYSTEM 9309100035 930910 TECHNOLOGY BRIEF ADVANCED MICRO DEVICES INC SEVERAL HOLDER SUITS FILED OVER CHIP ANNOUNCEMENT ADVANCED MICRO DEVICES INC SAID SEVERAL SHAREHOLDER LAWSUITS HAVE BEEN FILED AGAINST IT AND CERTAIN COMPANY OFFICIALS AMD SAID THE SUITS ALLEGE SECURITIES LAWS VIOLATIONS RELATED TO ITS ANNOUNCEMENT EARLIER THIS MONTH THAT IT DEVELOPED A COMPUTER CHIP CLONE OF INTEL CORP'S 486 CHIP PARTIALLY USING AN INTEL DESIGN AMD BASED IN SUNNYVALE CALIF SAID IT INTENDS TO VIGOROUSLY DEFEND ITSELF AGAINST THE SUITS 9309100034 930910 INTERNATIONAL BRIEF MITSUI MINING CO EXDIRECTORS TO COMPENSATE FOR STOCK DEAL COURT RULES JAPAN'S SUPREME COURT ORDERED SIX FORMER DIRECTORS OF MITSUI MINING CO TO PAY THE COMPANY 100 MILLION YEN 947000 IN COMPENSATION FOR DAMAGE CAUSED BY THEIR ILLEGAL DEALING IN ITS STOCKS UPHOLDING A LOWER COURT DECISION PRESIDING JUDGE OSAMU MIMURA RULED THAT THE SIX INCLUDING SHINGO ARIYOSHI FORMER COMPANY PRESIDENT VIOLATED THE COMMERCIAL LAW WHEN THEY BOUGHT MITSUI MINING SHARES IN 1975 FROM A RIVAL GROUP AND SOLD THEM AT A LOSS ACCORDING TO THE RULING THE COMPANY'S MANAGEMENT PLANNED TO MERGE WITH AN AFFILIATED CEMENT MAKER IN 1975 BUT WAS CONFRONTED WITH A GROUP OPPOSING THE MOVE BY CORNERING ABOUT 26 OF MITSUI MINING'S SHARES THE DIRECTORS BOUGHT THE SHARES IN A SECRET DEAL AT A COST OF ABOUT 821 BILLION YEN THEY RESOLD THE SHARES TO OTHER MITSUI GROUP COMPANIES FOR ABOUT 466 BILLION YEN THE RULING SAID THE PLAINTIFF IN THE CASE TAKASHI MIZUNO IS A MITSUI MINING SHAREHOLDER MITSUI MINING DECLINED TO COMMENT ON THURSDAY'S RULING THE DEFENDANTS COULDN'T BE REACHED FOR COMMENT 9309100033 930910 INTERNATIONAL BRIEF DEUTSCHE AEROSPACE AIRBUS GMBH MEMBER OF AIRBUS INDUSTRIE PLANS WORK FORCE REDUCTION DEUTSCHE AEROSPACE AIRBUS GMBH THE GERMAN PARTNER OF THE AIRBUS INDUSTRIE CONSORTIUM SAID IT PLANS TO CUT MORE THAN 8 OF ITS WORK FORCE OVER THE NEXT TWO YEARS THE COMPANY FACES SHRINKING ORDERS AS AIRLINE LOSSES MOUNT AND DEMAND FOR NEW JETS FALLS ACCORDING TO A SPOKESMAN AT THE COMPANY'S HAMBURG HEADQUARTERS DEUTSCHE AIRBUS IS IN TALKS WITH ITS WORKERS ABOUT HOW TO MAKE THE CUTS THE SPOKESMAN SAID THE COMPANY'S CONFIRMATION FOLLOWED AN ANNOUNCEMENT BY THE INHOUSE LABOR BOARD THAT MANAGEMENT WANTS TO ELIMINATE 3000 OF THE COMPANY'S 22000 JOBS BY 1995 THE NEW CUTS AREN'T INCLUDED IN THE 8000 JOBS THAT PARENT COMPANY DEUTSCHE AEROSPACE AG KNOWN AS DASA WILL CUT THIS YEAR AND NEXT FROM ITS 81000MEMBER WORK FORCE DASA THE DEFENSE AND AEROSPACE DIVISION OF GERMANY'S DAIMLERBENZ AG GROUP FACES LOSSES THIS YEAR AND NEXT 9309100031 930910 ENTERPRISE OIL PLC SAYS PROFIT SOARED IN FIRST HALF OF '93 SPECIAL TO THE WALL STREET JOURNAL LONDON ENTERPRISE OIL PLC A BRITISH OIL EXPLORATION AND PRODUCTION COMPANY SAID NET INCOME JUMPED SHARPLY IN THE FIRST HALF OF 1993 ON HIGHER REVENUE REDUCED SPENDING ON EXPLORATION AND A CONTRIBUTION FROM ELF ENTERPRISE PETROLEUM ITS JOINT VENTURE WITH SOCIETE NATIONALE ELF AQUITAINE OF FRANCE THE COMPANY RAISED ITS CASH INTERIM DIVIDEND BY 46 AND PROPOSED A 50 ENHANCED SCRIP ALTERNATIVE ENTERPRISE'S HALFYEAR NET INCOME OF 801 MILLION 1235 MILLION WHICH COMPARED WITH 346 MILLION A YEAR EARLIER WAS WELL ABOVE PRIOR MARKET ESTIMATES WHICH HOVERED AROUND 584 MILLION POUNDS WHILE ENTERPRISE'S OPERATING PROFIT ROSE 56 TO 659 MILLION FROM 423 MILLION THE TWO BIG WILD CARDS IN ITS RESULTS WERE THE CONTRIBUTION FROM ELF ENTERPRISE AND A SHARP REDUCTION IN UK TAX CHARGES ENTERPRISE SAID THE VENTURE WHOSE 92 MILLION PROFIT CONTRIBUTION COMPARED WITH A 500000 LOSS A YEAR BEFORE BENEFITED FROM AN INCREASE THAT WON'T BE REPEATED IN ITS SHARE OF UK PETROLEUM REVENUE TAX REFUNDS TO 82 MILLION FROM 20 MILLION MEANWHILE ENTERPRISE SAID ITS OWN BRITISH TAX BILL DROPPED TO 500000 FROM 163 MILLION THE REDUCTION WAS THE IMMEDIATE RESULT OF THE UK GOVERNMENT'S DECISION IN ITS MOST RECENT BUDGET TO REDUCE TAX CREDITS ON EXPLORATION IN THE UK'S NORTH SEA WHILE AT THE SAME TIME LOWERING TAXES ON PRODUCTION FROM EXISTING FIELDS ENTERPRISE SAID THAT BROUGHT IT A 270 MILLION EXCEPTIONAL CREDIT IN THE FIRST HALF ENTERPRISE SAID THE INCREASE IN ITS CASH INTERIM DIVIDEND BY 46 TO 95 PENCE FROM 65 PENCE WAS PART OF A PLAN TO REVERSE THE RELATIVE SIZE OF ITS INTERIM AND FINAL DIVIDENDS AS 95 PENCE WAS THE SIZE OF ENTERPRISE'S FINAL DIVIDEND IN 1992 NO DECISION HAS BEEN MADE AS TO THE AMOUNT OF THE FINAL DIVIDEND THE COMPANY SAID ENTERPRISE SAID IT WAS PROPOSING THE ENHANCED SCRIP ALTERNATIVE FOR THE INTERIM DIVIDEND BECAUSE ITS INCOME FROM THE NORWEGIAN NORTH SEA WAS GIVING IT A UK TAX DISADVANTAGE THE GROUP MADE GOOD PROGRESS DURING THE FIRST HALF OF 1993 SAID GRAHAM HEARNE CHAIRMAN AND CHIEF EXECUTIVE HOWEVER HE NOTED THE RECENT FALL IN OIL PRICES WILL LEAD TO A LOWER OUTTURN IN THE SECOND HALF MR HEARNE SAID ENTERPRISE WILL OPERATE ON THE EXPECTATION OF LOW OIL PRICES AND WILL PUT ITS FAITH INSTEAD IN THE INCREASED PRODUCTION CREATED BY ITS TWO NEW NORTH SEA FIELDS SCOTT AND NELSON WITH THOSE TWO PROJECTS OUT OF THE WAY SPENDING ON DEVELOPMENT PROJECTS DECLINED TO 1129 MILLION IN THE FIRST HALF FROM 1334 MILLION A YEAR BEFORE ENTERPRISE'S PRODUCTION ROSE 16 TO 157430 BARRELS OF OIL EQUIVALENT PER DAY IN THE FIRST HALF FROM 135500 BARRELS A YEAR BEFORE OF THAT INCREASE 136 PERCENTAGE POINTS REPRESENTED ENTERPRISE'S DIRECT PRODUCTION THE REMAINDER WAS ENTERPRISE'S THIRD SHARE IN ELF ENTERPRISE WHERE PRODUCTION ROSE TO THE EQUIVALENT OF 11280 BARRELS OF OIL A DAY FROM 6900 BARRELS A YEAR BEFORE 9309100029 930910 NEW YORK PENSION FUNDS INCREASED STOCKHOLDINGS NEW YORK TO BOLSTER RETURNS NEW YORK CITY'S PENSION FUND MANAGERS HAVE SUBSTANTIALLY INCREASED THEIR STOCKHOLDINGS INVESTED OVERSEAS AND REPLACED SHORTTERM BONDS WITH LONGERTERM ONES THE MORE AGGRESSIVE INVESTMENT STRATEGY HELPED THE CITY'S FIVE EMPLOYEE FUNDS BEAT THE ACTUARIAL ASSUMPTION OF EARNINGS BY 51 BILLION OVER THE LAST THREE FISCAL YEARS COMPTROLLER ELIZABETH HOLTZMAN SAID IN RELEASING A REPORT ON THE FUNDS MS HOLTZMAN WHO IS RUNNING FOR REELECTION IS AN ADVISER TO THE FUNDS THE REPORT SAYS THAT THE FUNDS HAD 59 OF THEIR ASSETS IN STOCKS AS OF JUNE 30 1993 UP FROM 35 IN FISCAL YEAR 1990 THE FUNDS BEGAN INVESTING OVERSEAS IN 1991 AND NOW HOLD 77 OF THEIR ASSETS INTERNATIONALLY WHILE THE INDIVIDUAL PORTFOLIOS WERE EXPECTED TO RETURN 85 TO 9 ANNUALLY OVER THE LAST THREE YEARS RETURNS HAVE RANGED FROM 83 TO 153 THE AVERAGE RETURN FOR THE FUNDS IN THE MOST RECENT FISCAL YEAR WAS 147 BY LAW THE FUNDS DO NOT USE FINANCIAL HEDGING INSTRUMENTS TO MITIGATE RISK FROM SUCH FACTORS AS SHIFTING CURRENCY EXCHANGE RATES BUT THE REPORT SAYS THAT THE FUNDS' OVERALL RISK WAS NOT INCREASED BECAUSE DIVERSIFICATION EFFORTS WERE INCREASED 9309100028 930910 LAND OF MIGHTY ALP TURNS FOR PROTECTION TO LITTLE WHITE PILLS NEARNESS OF NUCLEAR PLANT SPURS SWISS CIVILDEFENSE AIDES TO BATTLE A CANCER THREAT BY MARGARET STUDER STAFF REPORTER OF THE WALL STREET JOURNAL OBERGOESGEN SWITZERLAND AMID THE FARMLAND OF THIS IDYLLIC VILLAGE THE LARGE CONE OF A NUCLEARPOWER PLANT JUTS OUT LIKE A SORE THUMB ON MONDAY LOCALS WILL GET A SORT OF BANDAGE FOR IT IN A SOMEWHAT MACABRE AND UNIQUELY SWISS OPERATION CIVILDEFENSE OFFICERS WILL VISIT EACH HOME IN OBERGOESGEN TO HAND OUT LITTLE WHITE PILLS MEANT TO HELP PREVENT CANCER IN THE EVENT OF A NUCLEAR ACCIDENT THE PILLS ARE THE LATEST ADDITION TO THE ALREADY CONSIDERABLE ARMORY THIS SAFETYCONSCIOUS NATION HAS PUT TOGETHER OVER THE DECADES TO PROTECT ITS CITIZENS IN TIMES OF CATASTROPHE OR WAR EVERY HOUSE MUST HAVE A CELLAR EQUIPPED WITH MASSIVE DOORS CAPABLE OF BLOCKING DEADLY RADIOACTIVITY A PRESCRIBED ASSORTMENT OF EMERGENCY GROCERIES AND SPECIAL BEDS READY FOR ASSEMBLING IF A FAMILY SUDDENLY FINDS ITSELF SLEEPING ROUGH UNDERGROUND PARKING LOTS CAN BE CONVERTED OVERNIGHT INTO MASS FALLOUT SHELTERS THERE ARE 141 UNDERGROUND OPERATING STATIONS THROUGHOUT THE COUNTRY AND A MAZE OF MEDICAL CENTERS THAT CAN DEAL WITH MORE MINOR HEALTH PROBLEMS THE 500000MEMBER CIVILDEFENSE CORPS TRAINS REGULARLY THOUGH NOW IT FOCUSES LESS ON WAR AND MORE ON OTHER DISASTERS IN OBERGOESGEN CIVILDEFENSE CHIEF RUDOLF PUCK HAS BEEN PREPARING FOR PILLDISTRIBUTION DAY FOR MONTHS HE HAS 15 MEN REPORTING FOR DUTY ALL HAVING BEEN PREPPED TO ANSWER QUESTIONS WE DON'T WANT OUR CITIZENS TO FEEL ANXIOUS SAYS MR PUCK WHO ALSO WORKS FOR A SHOE COMPANY IF PEOPLE AREN'T HOME WHEN WE CALL ON MONDAY THEN WE WILL BE BACK ON TUESDAY SAYS MR PUCK NEWSPAPERS POSTERS AND RADIO HAVE ADVISED OF THE IMPENDING VISIT THE SWISS OFFICE OF PUBLIC HEALTH ACQUIRED 65 MILLION POTASSIUM IODIDE PILLS SUFFICIENT FOR SWITZERLAND'S WHOLE POPULATION IN CASE OF A MAJOR ATOMIC POWER ACCIDENT IF TAKEN IN TIME AFTER A SERIOUS ACCIDENT THE PILLS PREVENT INHALED RADIOACTIVE IODINE FROM ACCUMULATING IN THE THYROID GLAND REDUCING THE DANGER OF POSTCATASTROPHE CANCER THEY DON'T GUARD AGAINST OTHER TYPES OF CANCERS THAT COULD COME FROM EXPOSURE TO RADIOACTIVITY HOWEVER SWITZERLAND IS THE ONLY COUNTRY WHICH HAS ORDERED ENOUGH PILLS TO COVER THE TOTAL POPULATION SAYS A SPOKESWOMAN FOR MERCK OHG SUPPLIER AND EUROPE'S LEADING MANUFACTURER OF IODIDE PILLS OTHER COUNTRIES HAVE DONE IT IN A MUCH MORE LIMITED WAY FOR EXAMPLE MAKING THE PILLS AVAILABLE FOR THOSE LIVING CLOSE TO NUCLEAR PLANTS BUT NEVER THE WHOLE POPULATION THE SWISS PUT A LOT OF EFFORT INTO SAFETY SAYS DAVID KYD A SPOKESMAN FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY AND HE ADDS SWITZERLAND IS SUITED TO SUCH AN OPERATION YOU HAVE A SMALL POPULATION WHICH IS DISCIPLINED HE SAYS THE MIND BOGGLES AT THE THOUGHT OF CARRYING OUT SUCH AN OPERATION IN INDIA THE OPERATION COSTS THE GOVERNMENT NEARLY 4 MILLION INCLUDING THE PILLS INDEED IT'S HARD TO BEAT THE CAUTIOUS SWISS WHEN IT COMES TO BEING PREPARED FOR BAD THINGS WERNER WYSS DIRECTOR OF DEMOSCOPE MARKET RESEARCH SAYS SURVEYS INDICATE A HIGH NEED FOR SECURITY AMONGST THE SWISS WE CLASS TWOTHIRDS OF SWISS AS VERY SECURITYCONSCIOUS SWITZERLAND'S FIRST NUCLEAR PLANT STARTED OPERATING IN 1969 AND NOW THERE ARE FIVE NEARLY 40 OF SWITZERLAND'S ELECTRICITY IS GENERATED BY NUCLEAR ENERGY HOWEVER THE IDEA OF SUPPLYING THE POPULATION WITH PROTECTIVE POTASSIUM IODIDE PILLS DAWNED ONLY AFTER THE SOVIET UNION'S CHERNOBYL NUCLEAR PLANT CATASTROPHE IN 1986 IF YOU LIVE WITHIN A 25MILE RADIUS OF AN ATOMIC POWER STATION THE PILLS ARE DELIVERED TO YOUR DOORSTEP FOR STORAGE AT HOME EACH MEMBER OF THE FAMILY RECEIVES A PACKET OF 10 WITH THE PACKET COME LARGELETTERED BLUE AND WHITE SIGNS THAT CAN BE STUCK ON A CUPBOARD TO CLEARLY INDICATE WHERE THE PILLS ARE STORED A MAJOR PROBLEM SAY ORGANIZERS IS THE POSSIBILITY THAT PEOPLE WILL FORGET WHERE THEY PUT THEM INFORMATION SHEETS ACCOMPANY THE PILLS WHICH HAVE A SHELF LIFE OF EIGHT YEARS EXPLAINING HOW THEY SHOULD BE TAKEN AND GIVING APPROPRIATE WARNINGS INFORMATION IS WRITTEN NOT ONLY IN GERMAN FRENCH AND ITALIAN THE COUNTRY'S MAJOR LANGUAGES BUT IN ENGLISH SPANISH GREEK PORTUGUESE CZECH ARAB RUSSIAN AND TAMIL MR PUCK REGRETS THAT THERE ARE NO INSTRUCTIONS IN VIETNAMESE WE HAVE A LOT OF VIETNAMESE HERE PEOPLE LIVING WITHIN A RADIUS OF 25 TO 12 MILES WILL BE ASKED TO FETCH THE PILLS 9309100027 930910 BOARD ALLEGES KARCHER PLANS JOINT VENTURE FOR PERSONAL BENEFITS A WALL STREET JOURNAL NEWS ROUNDUP THE MANAGEMENT AND OUTSIDE DIRECTORS OF CARL KARCHER ENTERPRISES INC ACCUSED CHAIRMAN CARL KARCHER OF CHARTING A CORPORATE STRATEGY INTENDED IN PART TO RESOLVE HIS PERSONAL FINANCIAL PROBLEMS IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY'S MANAGEMENT SAID THAT THE CHAIRMAN'S BID TO HAVE THE FIRM JOIN FORCES WITH ANOTHER ANAHEIM CALIF FASTFOOD CHAIN GB FOODS CORP IS RELATED TO PROPOSED ARRANGEMENTS UNDER WHICH MR KARCHER PERSONALLY WOULD RECEIVE A 6 MILLION LOAN FROM THE PRINCIPAL SHAREHOLDER OF GB FOODS MR KARCHER COULD NOT BE REACHED YESTERDAY FOR COMMENT AS REPORTED MR KARCHER 76 YEARS OLD HAS ACKNOWLEDGED THAT HE IS IN DEFAULT OF SOME LOAN AGREEMENTS AND IS EXPLORING WAYS TO RESTRUCTURE HIS PERSONAL FINANCES LAST WEEK MR KARCHER ALSO THREATENED TO TRY TO OUST DIRECTORS WHO ARE BALKING AT HIS PLANS TO HAVE THE FIRM'S CARL'S JR OUTLETS TEST MARKET MEXICAN FOOD IN CONJUNCTION WITH GB FOODS' GREEN BURRITO STORES IN ONE LETTER FILED WITH THE SEC DIRECTOR KENNETH OLSEN WROTE MR KARCHER THAT IN ALL CANDOR THE OTHER OUTSIDE DIRECTORS DO NOT FEEL THAT THEY HAVE RECEIVED COMPLETE ANSWERS ABOUT THE PROPOSED VENTURE WITH GB FOODS MR KARCHER AND RELATED PARTIES OWN ABOUT 34 OF THE COMPANY'S SHARES OUTSTANDING IN AN INTERVIEW DONALD DOYLE PRESIDENT AND CHIEF EXECUTIVE OF CARL KARCHER ENTERPRISES SAID THAT MR KARCHER'S PUBLIC STATEMENTS WERE NOT REALLY COMPLETE MR DOYLE ALSO SAID THAT THE BOARD WON'T GO ALONG WITH THE CHAIRMAN'S IDEAS UNLESS IT RECEIVES MORE SPECIFIC INFORMATION ABOUT THE POTENTIAL PERSONAL BENEFITS HE STANDS TO RECEIVE FROM ANY VENTURE WITH GB FOODS THE DOCUMENTS FILED WITH THE SEC INDICATE AMONG OTHER THINGS THAT THE DISCUSSIONS OVER THE PAST FEW MONTHS BETWEEN MR KARCHER AND WILLIAM THEISEN THE PRINCIPAL SHAREHOLDER OF GB FOODS HAVE INVOLVED PERSONAL FINANCES AND TAKING PERSONAL FINANCIAL RISKS AS PART OF MR KARCHER'S PROPOSAL THE TWO COMPANIES WOULD EXCHANGE WARRANTS AND MR THEISEN WOULD JOIN THE BOARD OF CARL KARCHER ENTERPRISES 9309100026 930910 POLITICS & POLICY CLINTON TO ORDER CHANGES IN METHOD OF REGULATION EXPANDING GORE'S ROLE BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO ORDER SWEEPING CHANGES IN THE WAY THE GOVERNMENT ISSUES REGULATIONS WHICH WOULD EXPAND THE POWER OF VICE PRESIDENT AL GORE AND DIMINISH THE INFLUENCE OF TRADITIONAL WHITE HOUSE REGULATORY REVIEWERS CLINTON ADMINISTRATION OFFICIALS AND REGULATORY ANALYSTS INVOLVED IN THE PROCESS SAID THE EXECUTIVE ORDER COULD BE RELEASED AS EARLY AS MONDAY A REGULATORY REVIEW TEAM HEADED BY MR GORE'S AIDES HAS BEEN WORKING ON THE PROJECT SINCE THE EARLY DAYS OF THE CLINTON ADMINISTRATION ALTHOUGH THE EFFORT IS SEPARATE FROM THE VICE PRESIDENT'S PROGRAM OF REINVENTING GOVERNMENT ONE OF PRESIDENT CLINTON'S FIRST ACTS IN OFFICE WAS TO ABOLISH FORMER VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL WHICH HAD THE GOAL OF REDUCING REGULATION ON BUSINESS AND BEGIN WORKING ON A REPLACEMENT THE NEW ORDER WILL GIVE MR GORE WHO REPEATEDLY CRITICIZED THE COMPETITIVENESS COUNCIL DURING THE CAMPAIGN FOR USURPING POWER FROM ADMINISTRATIVE AGENCIES THE LEAD ROLE IN SHAPING THE ADMINISTRATION'S REGULATORY PRIORITIES AND SETTLING CLASHES BETWEEN AGENCIES OVER REGULATION IF FOR EXAMPLE THE OFFICE OF MANAGEMENT AND BUDGET DIFFERED WITH THE INTERIOR DEPARTMENT OVER RANGELAND MANAGEMENT THE VICE PRESIDENT WOULD TRY TO BRING THE SIDES TOGETHER AND PRESENT RECOMMENDATIONS FORMALLY PRESIDENT CLINTON WOULD BE THE FINAL ARBITER OF DISPUTES THE NEW REGULATORY PROCESS TRIES TO STRIKE A BALANCE BETWEEN BUSINESS AND CONSUMER GROUPS BUT BOTH SIDES SAY THE RULES ARE UNSATISFACTORY BUSINESS GROUPS WORRY THAT MR GORE AN ARDENT ENVIRONMENTALIST WILL USE HIS POSITION TO PRESS FOR AN EXPANSION OF REGULATION CONSUMER AND ENVIRONMENTAL GROUPS COMPLAIN THAT THE ADMINISTRATION IS SETTING UP ROADBLOCKS THAT WILL MAKE IT MORE DIFFICULT FOR THE AGENCIES TO REGULATE UNDER THE NEW PROCESS OFFICIALS SAID AGENCIES WOULD BE REQUIRED TO MEET SEVERAL REQUIREMENTS BEFORE ISSUING NEW RULE PROPOSALS FOR INSTANCE THE AGENCY WOULD BE ASKED TO EXPLAIN THE IMPORTANCE OF THE NEW RULE COMPARED WITH OTHER REGULATORY PRIORITIES THE AGENCIES MIGHT HAVE IN THE CASE OF THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION THE AGENCY WOULD HAVE TO JUSTIFY WHY A PROPOSAL TO LIMIT EXPOSURE TO SAY ASPHALT FUMES SHOULD TAKE PRECEDENCE OVER OTHER HEALTH REGULATIONS OSHA HOWEVER HAS THOUSANDS OF CHEMICALS IT MIGHT CHOOSE TO REGULATE AND MAY FIND IT DIFFICULT TO PROVIDE A REASONABLE RANKING OF HEALTH RISKS IN A DEPARTURE FROM REPUBLICAN ADMINISTRATIONS WHITE HOUSE REVIEWERS AT THE OFFICE OF INFORMATION AND REGULATORY AFFAIRS WOULDN'T ANALYZE EVERY NEW REGULATORY PROPOSAL INSTEAD THEY WOULD CHOOSE ONLY RULES THAT HAVE SIGNIFICANT IMPACT EITHER ECONOMICALLY OR ON REGULATORY POLICY FOR DETAILED ANALYSIS AND THEN THE REVIEWERS WOULD ANALYZE THE PROPOSALS FROM A BROADER PERSPECTIVE THAN DURING THE PAST 12 YEARS WHEN THE WHITE HOUSE INSISTED THAT THE ECONOMIC BENEFITS OF RULES OUTWEIGH THEIR COSTS UNDER THE CLINTON PLAN THE REVIEWERS WOULDN'T SCRAP COSTBENEFIT ANALYSIS BUT IN AN EARLIER INTERVIEW SALLY KATZEN HEAD OF THE WHITE HOUSE REGULATORY OFFICE SAID THE ADMINISTRATION WOULD HAVE A BROADER DEFINITION OF COSTS AND BENEFITS FOR EXAMPLE REVIEWS COULD TAKE INTO ACCOUNT THE INTANGIBLE VALUE OF PRESERVING A WILDERNESS AREA AT THE SAME TIME THE REVIEWERS ARE EXPECTED TO STRESS THAT THE AGENCY CHOOSE THE LEAST COSTLY WAY OF DEVISING REGULATIONS PAUL PORTNEY VICE PRESIDENT FOR RESOURCES FOR THE FUTURE AN ENVIRONMENTAL THINKTANK SAID THAT EFFORT COULD LEAD THE ADMINISTRATION TO BACK MARKETBASED INCENTIVES SUCH AS SWAPPING POLLUTION CREDITS AS LESS EXPENSIVE ALTERNATIVES TO TRADITIONAL REGULATION THE REGULATORY OFFICE ALSO WOULD BE TIED TO TIGHT SCHEDULES FOR COMPLETING THEIR REVIEW IN AN ATTEMPT TO KEEP THE AGENCY FROM HOLDING UP RULES INDEFINITELY AS HAD HAPPENED UNDER THE BUSH ADMINISTRATION IF THE REVIEW ISN'T COMPLETED ON TIME AGENCIES WOULD BE FREE TO PUBLISH NEW RULES ROBERT COAKLEY EXECUTIVE DIRECTOR OF THE COUNCIL ON REGULATORY AND INFORMATION MANAGEMENT A BUSINESS GROUP CONCERNED WITH REGULATION SAYS THE NEW SYSTEM COULD GIVE AGENCIES FREE REIN ONCE YOU SAY A RULE ISN'T SIGNIFICANT AGENCIES WON'T HAVE THE SAME INCENTIVE TO GET PUBLIC COMMENT AND CONSIDER IT SERIOUSLY HE SAID 9309100025 930910 LAW LEGAL BEAT INVESTORS LOSE SECURITIESFRAUD RULING BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SECURITIESFRAUD LAWSUITS JUST GOT A LITTLE LESS THREATENING FOR CORPORATE DEFENDANTS IN A DECISION WITH NATIONAL IMPLICATIONS THE CALIFORNIA SUPREME COURT HELD THAT INVESTORS WHO SUE FOR FRAUD CAN'T COLLECT PUNITIVE DAMAGES UNLESS THEY PROVE THAT THEY ACTUALLY RELIED ON CORPORATE MISREPRESENTATIONS IN MAKING THEIR INVESTMENT DECISIONS THE PLAINTIFFS IN THE CLASSACTION CASE HAD ARGUED THAT A FEDERAL DOCTRINE KNOWN AS THE FRAUDONTHEMARKET THEORY HAD OBVIATED THE NEED TO PROVE THAT THE PLAINTIFFS HAD ACTUALLY HEARD OR READ FRAUDULENT STATEMENTS ALLEGEDLY MADE BY THE COMPANY THE DECISION APPLIES ONLY TO CASES FILED IN CALIFORNIA UNDER PROVISIONS OF THE STATE'S CIVIL CODE PROHIBITING DECEIT AND NEGLIGENT MISREPRESENTATION BUT THAT STATE HAS BEEN A SECURITIES LITIGATION HAVEN IN RECENT YEARS GIVEN THE UPS AND DOWNS OF HIGHTECH COMPANIES IN THE SILICON VALLEY MOREOVER THE RULING IS BELIEVED TO BE THE FIRST ON THIS ISSUE BY THE TOP COURT OF ANY LARGE STATE AND THUS IS EXPECTED TO HAVE AN IMPACT ON THE DEVELOPMENT OF THE LAW NATIONALLY THE LAWSUIT INVOLVING TRADING IN THE SHARES OF MAXICARE HEALTH PLANS INC A HEALTHCARE COMPANY THAT CRASHED AND BURNED IN THE LATE 1980S REFLECTED AN ATTEMPT TO TURN STATE LAW INTO MORE OF A WEAPON IN SECURITIES CASES PUNITIVE DAMAGES AREN'T ALLOWED UNDER FEDERAL SECURITIES LAWS ALTHOUGH SOME STATE LAWS ALLOW THEM UNDER CERTAIN CONDITIONS AND SUCH CLAIMS ARE ROUTINELY INCLUDED IN INVESTOR LAWSUITS WHEN PUNITIVE DAMAGES ARE ASSESSED THEY ARE DESIGNED TO PUNISH AND DETER PARTICULARLY SERIOUS WRONGDOING AND MAY BE FAR LARGER THAN A PLAINTIFF'S ACTUAL FINANCIAL LOSSES IT IS A SETBACK FOR THE PLAINTIFFS' BAR SAID DONALD J SCHMID AN ATTORNEY FOR GIBSON DUNN & CRUTCHER IN LOS ANGELES WHO REPRESENTED TWO DEFENDANTS IN THE CASE SALOMON BROTHERS INC AND MONTGOMERY SECURITIES INC WHO UNDERWROTE MAXICARE STOCK MR SCHMID SAID THE DECISION REJECTS AN ATTEMPT TO PRETTY RADICALLY EXTEND THE CALIFORNIA LAW OF FRAUD THE CASE MIRKIN V WASSERMAN HAD BEEN CLOSELY WATCHED BY BOTH SIDES OF THE SECURITIES BAR BECAUSE IT HAD THE POTENTIAL OF DRAMATICALLY INCREASING THE STAKES IN INVESTOR LAWSUITS LONG THE BANE OF CORPORATE DEFENDANTS IT IS CERTAINLY A DECISION THAT WILL BE CHEERED BY THE CORPORATE COMMUNITY UNDERWRITERS AND ACCOUNTING FIRMS BUT IT IS A SAD DAY FOR INDIVIDUAL INVESTORS SAID WILLIAM LERACH A SAN DIEGO SHAREHOLDER ATTORNEY WHO REPRESENTED PLAINTIFFS IN THE CASE IN ITS OPINION THE CALIFORNIA COURT KNOWN IN RECENT YEARS FOR ITS CONSERVATISM IN BUSINESS CASES EXPRESSED CONCERN THAT ALLOWING PUNITIVE DAMAGES WOULD INTERFERE WITH A FEDERAL SCHEME THAT ALREADY POSES POTENTIALLY CRUSHING LIABILITY FOR DEFENDANTS IN SUCH SUITS THE COURT ALSO SAID THE AVAILABILITY OF PUNITIVE DAMAGES COULD BOOST THE SETTLEMENT VALUE OF MARGINAL CLAIMS THE DECISION IS ALSO IMPORTANT BECAUSE STATE COURTS IN GENERAL HAVE INCREASINGLY BECOME THE FORUM OF CHOICE FOR INVESTORS SUING LARGE CORPORATIONS REFLECTING MORE GENEROUS STATUTES OF LIMITATION THAT ALLOW THE FILING OF LAWSUITS LONG AFTER THE ALLEGED FRAUD OCCURRED IN ADDITION FEDERAL JUDGES IN RECENT YEARS HAVE MADE IT TOUGHER FOR PLAINTIFFS TO PROVE FRAUD IN SUCH CASES AND A GROWING NUMBER OF THESE SUITS ARE BEING DISMISSED I THINK THIS WILL HAVE AN ADVERSE IMPACT ON THAT EFFORT AND PROBABLY RESULT IN FEWER ACTIONS IN STATE COURT PROBABLY ACROSS THE COUNTRY MR SCHMID SAID PART OF WASHINGTON'S HATECRIME LAW GOES TOO FAR IN RESTRICTING SPEECH THE STATE SUPREME COURT RULED THE COURT SAID THE LAW IS CONSTITUTIONAL WHEN IT PUNISHES A HARMFUL ACT BUT NOT WHEN IT PUNISHES THE EXPRESSION OF AN OPINION THE JUSTICES LET STAND A LOWERCOURT RULING THAT FOUND A SKINHEAD'S FREESPEECH RIGHTS WERE VIOLATED WHEN HE WAS CHARGED UNDER THE HATECRIME LAW THE SKINHEAD DAVID TALLEY WAS ACCUSED OF BURNING A CROSS IN HIS YARD AND UTTERING RACIAL EPITHETS AT A MIXEDRACE COUPLE WHO WERE CONSIDERING BUYING A HOUSE NEXT DOOR THE WASHINGTON SUPREME COURT SAID THE GOVERNMENT COULD ONLY BAR CRIMES SUCH AS CROSS BURNINGS IF THEY RESULT IN DAMAGE TO VICTIMS' PROPERTY OR CAUSE VICTIMS TO FEAR FOR THEIR LIVES IN 1992 THE US SUPREME COURT STRUCK DOWN A ST PAUL MINN ORDINANCE THAT BANNED CROSS BURNINGS AND OTHER EXPRESSIONS OF RACIAL BIAS ON FREESPEECH GROUNDS THE US HIGH COURT RULED THIS YEAR HOWEVER THAT PEOPLE WHO COMMIT CRIMES MOTIVATED BY BIGOTRY MAY BE SENTENCED TO EXTRA PUNISHMENT WITHOUT VIOLATING THEIR FREESPEECH RIGHTS WHO'S NEWS ROBERT O ADERS BECAME OF COUNSEL TO WASHINGTON LAW FIRM COLLIER SHANNON RILL & SCOTT MR ADERS WILL SPECIALIZE IN ANTITRUST TRADE REGULATION AND LABOR ISSUES HE WILL CONTINUE TO SERVE AS CHAIRMAN OF THE INTERNATIONAL ADVISORY BOARD OF THE FOOD MARKETING INSTITUTE A GROCERY WHOLESALER AND RETAILER ASSOCIATION NY JUDGE SENTENCED SOL WACHTLER FORMER CHIEF JUDGE OF NEW YORK'S HIGH COURT WAS SENTENCED TO 15 MONTHS IN PRISON FOR HARASSING HIS FORMER LOVER THE ASSOCIATED PRESS REPORTED MR WACHTLER PLEADED GUILTY IN MARCH TO A BIZARRE SERIES OF ACTIONS IN WHICH HE DISGUISED HIS IDENTITY AND AMONG OTHER THINGS THREATENED TO KIDNAP THE WOMAN'S TEENAGE DAUGHTER MR WACHTLER ONCE CONSIDERED ONE OF THE NATION'S LEADING JURISTS BLAMED HIS BEHAVIOR ON MENTAL ILLNESS IN FEDERAL COURT IN TRENTON NJ MR WACHTLER ALSO WAS FINED 30000 CHINA CONNECTION CHINESELAW SCHOLAR TIMOTHY A GELATT HAS JOINED THE NEW YORK OFFICE OF O'MELVENY & MYERS WHERE HE WILL BE OF COUNSEL KOYUNG TUNG HEAD OF THE LOS ANGELES LAW FIRM'S GLOBAL PRACTICE GROUP SAID THE FIRM IS EXPANDING ITS ASIAN PRACTICE AND HOPES TO OPEN OFFICES IN CHINA AND HONG KONG MR GELATT WILL CONTINUE TEACHING AT NEW YORK UNIVERSITY AND COLUMBIA LAW SCHOOLS 9309100024 930910 PRIVATIZATION CLEARS POLITICAL BARRIER IN TURKEY TELECOMMUNICATION FIRM'S SALE BY GOVERNMENT COULD REAP 15 BILLION BY JAMES M DORSEY SPECIAL TO THE WALL STREET JOURNAL ISTANBUL TURKEY PRIME MINISTER TANSU CILLER HAS ACHIEVED CRUCIAL AGREEMENT WITHIN HER RULING COALITION TO PUSH AHEAD WITH PRIVATIZATION OF TURKEY'S STATEOWNED TELECOMMUNICATIONS MONOPOLY WEAKENED BY A CORRUPTION SCANDAL MS CILLER'S JUNIOR COALITION PARTNER THE SOCIAL DEMOCRATS PAVED THE WAY FOR THE PRIVATIZATION BY DROPPING ITS OPPOSITION THE MOVE CAME AFTER THE PRIME MINISTER AGREED THAT THE GOVERNMENT WOULD MAINTAIN A 51 STAKE IN THE COMPANY THE SALE OF THE REMAINDER IS EXPECTED TO EARN THE GOVERNMENT AS MUCH AS 15 BILLION THE DECISION TO MOVE AHEAD IS WIDELY SEEN AS AN INDICATION THAT MS CILLER IS SERIOUS ABOUT URGENTLY NEEDED ECONOMIC REFORMS TO NARROW TURKEY'S 5 BILLION BUDGET DEFICIT TO SLOW INFLATION GALLOPING AT 73 AND TO LIMIT THE STATE'S DOMINANT ROLE IN THE ECONOMY IT COMES SHORTLY BEFORE A PARTY CONGRESS THAT IS TO ELECT A NEW LEADER FOR THE SOCIAL DEMOCRATS WHO WILL REPLACE RETIRING DEPUTY PRIME MINISTER ERDAL INONU AS PARTY HEAD AND THE NO 2 FIGURE IN THE GOVERNMENT EXPECTATIONS THAT THE NEW PARTY LEADER WOULD TAKE A TOUGHER STAND ON ISSUES INCLUDING PRIVATIZATION HAVE BEEN OFFSET BY THE RECENT ARREST OF ERGUN GOKNEL THE FORMER HEAD OF THE ISTANBUL MUNICIPAL WATERWORKS ON CHARGES THAT HE ACCEPTED BRIBES FOR HIMSELF AND FOR SENIOR SOCIAL DEMOCRATIC MEMBERS OF THE GOVERNMENT MR GOKNEL HAS DENIED THE CHARGES AND THE PARTY ALSO HAS DENIED PARTICIPATION IN THE SCANDAL A WORLD BANK DELEGATION IN ANKARA IS HELPING THE GOVERNMENT ESTABLISH A FRAMEWORK FOR PRIVATIZATION THIS INVOLVES SPLITTING THE POSTAL TELEPHONE & TELEGRAPH TURKEY'S MOST PROFITABLE STATERUN ENTERPRISE WITH 15 BILLION IN ASSETS INTO A POSTAL ENTITY AND A TELECOMMUNICATIONS WING ACCORDING TO GOVERNMENT OFFICIALS AND INDUSTRY PEOPLE PRIVATIZATION OF TELECOMMUNICATIONS IS POLITICALLY SENSITIVE BECAUSE MANY TURKS SEE IT AS SURRENDERING CONTROL OF A KEY NATIONAL ASSET BUT ECONOMICALLY IT IS RELATIVELY SAFE BECAUSE IT IS UNLIKELY TO SIGNIFICANTLY REDUCE THE NUMBER OF JOBS THIS IS A POLITICAL AND MORAL ISSUE IT'S AS IF WE ARE SELLING OUR COUNTRY SAYS A YOUNG TURKISH BANKER PRIVATIZATION OF TELECOMMUNICATIONS IS A VERY SERIOUS MOVE SAYS MAARTEN HULSHOFF THE HEAD OF CITIBANK'S BRANCH IN TURKEY INDUSTRY PEOPLE ESTIMATE THE POTENTIAL VALUE OF THE COMPANY AT BETWEEN 20 BILLION AND 30 BILLION UNDER THE COALITION AGREEMENT BETWEEN MS CILLER'S TRUE PATH PARTY AND THE SOCIAL DEMOCRATS THE GOVERNMENT WILL MOVE IMMEDIATELY TO PRIVATIZE UP TO 20 OF THE TELECOMMUNICATIONS COMPANY AND IT HAS COMMITTED TO SELLING OFF AN ADDITIONAL 29 WITHIN FIVE YEARS IN EXCHANGE FOR THE SOCIAL DEMOCRATS' CONSENT TO THE SALE MS CILLER DROPPED HER PLAN TO SELL OFF 51 OF THE COMPANY BUT THE SOCIAL DEMOCRATS REMAIN AMBIVALENT TO THE POLICY OF PRIVATIZATION FOR THE TIME BEING THE REMAINING 51 WILL REMAIN IN THE HANDS OF THE STATE NOBODY CAN PREDICT WHAT WILL HAPPEN AFTER FIVE YEARS SAYS SEKI MITVELIOGLU A SENIOR AIDE TO MS CILLER TORN BETWEEN CONCLUDING AN AGREEMENT WITH AN INTERNATIONAL TELECOMMUNICATIONS COMPANY AND A PUBLIC OFFERING OF SHARES WHICH WOULD BE SAFER POLITICALLY THE GOVERNMENT IS EXPECTED TO OPT FOR A FORMULA THAT ENCOMPASSES BOTH IT HAS TO BE A COMBINATION WE WILL FIRST SEEK AN INTERNATIONAL OPERATOR AND THEN MAKE A PUBLIC OFFERING SAYS MR MITVELIOGLU THE AIDE TO THE PRIME MINISTER THOSE IN THE INDUSTRY SAY A SHARE SALE TO AN INTERNATIONAL FIRM WOULD ENHANCE THE TELECOMMUNICATION COMPANY'S STANDING THE GOVERNMENT HASN'T DECIDED WHETHER TO SPLIT THE TELECOMMUNICATIONS WING OF PTT INTO GEOGRAPHIC OR FUNCTIONAL UNITS OR TO MARKET IT AS ONE ENTITY WHICHEVER WAY IT GOES EVERY MAJOR TELEPHONE OPERATOR WILL BE INTERESTED IN THIS SAYS ISAK ANTIKA HEAD OF THE CHASE MANHATTAN BANK OFFICE IN TURKEY SELLING THE PTT IS A CASH COW ADDS KEMAL OZDEN VICE PRESIDENT OF NETAS SA A PRIVATE TURKISH TELECOMMUNICATIONS FIRM WITH ONLY 16 TELEPHONES FOR EVERY 100 PEOPLE TURKEY CONSTITUTES A MARKET WITH TREMENDOUS GROWTH POSSIBILITIES THIS MARKET HAS A GOOD UPSIDE POTENTIAL THE MORE CONNECTIONS THE MORE BUSINESS SAYS CITIBANK'S MR HULSHOFF THOSE IN THE INDUSTRY CAUTION HOWEVER THAT MUCH WILL DEPEND ON THE GOVERNMENT'S WILLINGNESS TO LIBERALIZE PRICING POLICY AND ADJUST PRICES TO THE RATE OF INFLATION THEY NOTE THAT TELECOMMUNICATIONS CHARGES HAVE REMAINED CONSTANT THE PAST YEAR DESPITE SPIRALING INFLATION WITHIN THE MONTH THE GOVERNMENT IS EXPECTED TO INVITE BROKERAGE FIRMS TO BID ON CONSULTING ON THE PRIVATIZATION IN ADDITION TO CITIBANK AND CHASE MANHATTAN FIRST NATIONAL BANK OF BOSTON MERRILL LYNCH JP MORGAN GOLDMAN SACHS AND LEHMAN BROTHERS ARE EXPECTED TO ENTER BIDS SAYS MR HULSHOFF THERE'S A LOT OF INTEREST THIS IS GOING TO BE ONE IMPORTANT PRIVATIZATION 9309100023 930910 IT'S ABOUT TIME POLITICAL VERBIAGE BECAME THE SUBJECT OF A LAWSUIT BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW JERSEY GOVERNOR'S RACE IS SHAPING UP AS A WAR OF WORDS AND A WAR OVER WORDS AS WELL THE STATE'S 21 COUNTY CLERKS TASKED WITH PRINTING AND MAILING SAMPLE BALLOTS TO VOTERS ARE UP IN ARMS ABOUT A LAW THAT CALLS FOR THE BALLOTS TO INCLUDE 500WORD STATEMENTS FROM EACH GUBERNATORIAL CANDIDATE THE CLERKS HAVE DONE THIS DUTY SINCE 1977 BUT THIS YEAR THEY SAY THEY'VE GOT MORE WORDS THAN THEY CAN HANDLE NEW JERSEY HAS 19 CANDIDATES INCLUDING DEMOCRATIC INCUMBENT JIM FLORIO AND REPUBLICAN CHRISTINE TODD WHITMAN IN PAST YEARS YOU WOULD HAVE ONE DEMOCRAT ONE REPUBLICAN AND TWO OR THREE SCREWBALLS RUNNING FOR GOVERNOR SAYS WALTER HALPIN UNION COUNTY CLERK THERE WERE 14 CANDIDATES IN 1977 BUT SINCE THEN THE FIELD HAS USUALLY BEEN SMALLER WITH 19 CANDIDATES THE 500WORD STATEMENTS COULD ADD UP TO 9500 WORDS WHICH IN MOST COUNTIES MUST BE CRAMMED ONTO ONE SHEET OF PAPER FIVE COUNTIES MUST PUBLISH THE INFORMATION IN SPANISH AND ENGLISH IN BERGEN COUNTY A PROTOTYPE FOR THIS YEAR'S SAMPLE BALLOT MEASURED 25 INCHES BY 19 INCHES COMPARED WITH THE 12BY19INCH SAMPLE IN 1989 WHEN SIX CANDIDATES RAN THE TYPE STILL HAD TO BE SHRUNK TO ABOUT HALF THE TYPE SIZE IN THIS NEWSPAPER THE CLERKS WORRY NOT ONLY ABOUT THE STRAIN ON VOTERS' EYES BUT ALSO THE STRAIN ON COUNTY BUDGETS FROM HIGHER PAPER AND POSTAGE COSTS COUNTIES ARE SUPPOSED TO BE REIMBURSED FOR THOSE COSTS BUT IN 1989 THE STATE ELECTION LAW ENFORCEMENT COMMISSION DIDN'T PAY UP THIS YEAR THE COMMISSION HAS BUDGETED ONLY 175000 BERGEN COUNTY ALONE PUTS ITS COSTS AT 84000 THE CLERKS HAVE SUED THE COMMISSION DEMANDING THAT IT PAY THE ESTIMATED 3 MILLION IN EXPENSES FOR ALL 21 COUNTIES OR ALLOW THE CLERKS TO PUBLISH THE STATEMENTS IN NEWSPAPERS INSTEAD A HEARING IS SET FOR TODAY IN STATE COURT IN HACKENSACK NOT EVERYONE IS SYMPATHETIC NEIL UPMEYER EDITOR OF THE BIMONTHLY NEW JERSEY REPORTER SAYS INCLUDING THE STATEMENTS IN THE SAMPLE BALLOT IS A MINOR CONTRIBUTION TO FREE SPEECH THAT SHOULD BE PRESERVED AS FOR THE COUNTIES' GRIPE ABOUT MONEY HE SAYS DOZENS OF PROVISIONS OF STATE LAW ARE IMPOSED ON THE COUNTIES AND THE COUNTIES MUST PAY FOR THEM 9309100022 930910 LEISURE & ARTS ON SPORTS BEST BOXERS POUND FOR POUND BY FREDERICK C KLEIN IT'S NOT MY USUAL PRACTICE TO PREVIEW EVENTS I DON'T PLAN TO COVER BUT I'M MAKING AN EXCEPTION FOR TONIGHT'S BOXING MATCH FROM SAN ANTONIO BETWEEN JULIO CESAR CHAVEZ AND PERNELL WHITAKER THE FORMAL TITLE ON THE LINE WILL BE WHITAKER'S WORLD BOXING COUNCIL WELTERWEIGHT 147POUND CROWN BUT THE REAL AND MORE IMPORTANT ISSUE AT STAKE WILL BE WHO'S THE BEST FIGHTER AROUND POUNDFORPOUND MOST EXPERTS RANK THE COMBATANTS 12 IN THAT DEPARTMENT ALTHOUGH THE ORDER VARIES NO ONE KNOWS WHAT'LL HAPPEN ONCE THE BELL RINGS OF COURSE BUT FROM HERE CHAVEZWHITAKER SHAPES UP AS A CLASH OF TWO SUPREMELY SKILLED FIGHTERS IN THEIR PRIMES WITH AN INTERESTING CONTRAST IN STYLES TO BOOT THE 31YEAROLD CHAVEZ UNBEATEN IN 87 PROFESSIONAL BOUTS WITH 75 KNOCKOUTS AND VARIOUS CHAMPIONSHIP BELTS IS THE PROTOTYPICAL ATTACKER RELENTLESS IN PURSUIT THE 29YEAROLD WHITAKER WHOSE RECORD IS 321 WITH HIS ONLY LOSS AVENGED IS PROBABLY THE MOST ELUSIVE BOXER EXTANT A TRUE MASTER OF EVASION HIS 15 KNOCKOUTS SHOW HE ISN'T LACKING IN CLOUT THE FIGHT PLUS PRELIMS WILL BE AVAILABLE ON PAYPERVIEW TELEVISION THE CABLE OPERATOR IN MY AREA IS CHARGING 2995 IF THAT'S TOO STEEP YOU CAN INVITE A FEW FRIENDS AND DIVIDE THE COST IF YOU'RE ENTREPRENEURIAL YOU CAN JOIN THE UNDERGROUND ECONOMY BY ESTABLISHING A TRUE HOME BOX OFFICE IN A BETTER WORLD GOOD BOXING MATCHUPS WOULD BE FREQUENT AND THE ANCIENT ACTIVITY WOULD PROSPER IN THIS ONE A PAIRING LIKE CHAVEZWHITAKER OCCURS RARELY AND THEN MOSTLY BECAUSE THE HANDLERS OF THE FIGHTERS INVOLVED HAVE RUN OUT OF OTHER LESSTESTING TARGETS FOR THEIR TIGERS GIVEN THE OBVIOUS DANGERS THAT ITS RIGORS IMPOSE BOXING SHOULD BE OUR CLOSESTREGULATED SPORT IN FACT IT LACKS ANY REGULATION WORTH THE NAME ONE NEED LOOK NO FURTHER THAN THE HEAVYWEIGHT DIVISION THE ONLY ONE MANY PEOPLE FOLLOW TO VERIFY BOXING'S USUAL ABYSMAL CONDITION THE WORLD BOXING ORGANIZATION AN ENTITY OF DUBIOUS ORIGIN RECOGNIZES AS ITS HEAVYWEIGHT CHAMPION TOMMY MORRISON WHO HITS HARD BUT IS OTHERWISE UNSKILLED ON AUG 30 IN KANSAS CITY MORRISON WAS TO FIGHT MIKE WILLIAMS WHOSE MAIN CREDENTIAL WAS THAT HE USED TO SPAR WITH MIKE TYSON THE IMPRISONED FORMER CHAMPION TWO DAYS BEFORE THE BOUT WILLIAMS BACKED OUT SAYING HIS BACK HURT OTHERS ATTRIBUTED HIS WITHDRAWAL TO A REFUSAL TO TAKE A DRUG TEST FACED WITH A CANCELLATION OF HIS CARD PROMOTER BOB ARUM SUMMONED ONE TIM TOMASHEK A SOMETIMEFIGHTER SOMETIMEFORKLIFTOPERATOR WHOSE ROTUND FIGURE FULLY SUPPORTS HIS NICKNAME OF THE DOUGHBOY THE WAY THE FIGHT WAS PRESENTED ON ESPN MANY HAD THE IMPRESSION THAT TOMASHEK WAS PULLED FROM THE AUDIENCE TO FACE MORRISON IN ANY CASE HE LASTED BUT FOUR ROUNDS BEFORE MORRISON PREVAILED VIA A TKO THE WBO NODDED APPROVINGLY OR TAKE THE CASE OF RAY MERCER THE 1988 OLYMPIC HEAVYWEIGHT GOLD MEDALIST HE'S UNDER INDICTMENT ON CHARGES THAT HE WAS OVERHEARD OFFERING A BRIBE TO STAVE OFF AN UPSET AT THE HANDS OF JESSE FERGUSON WHILE THE LATTER WAS PUMMELING HIM THE CHARGES STILL PEND BUT THE TWO HAVE SIGNED FOR A NOV 19 REMATCH THAT PROMOTER ARUM IS BILLING AS THE FINAL VERDICT YOU'D CRY IF YOU WEREN'T LAUGHING THE REST OF THE HEAVYWEIGHT CHAMPIONSHIP SCENE IS ONLY MARGINALLY BETTER THE GENERALLY ACKNOWLEDGED CHAMP IS RIDDICK BOWE WHO WON THE TITLE BY SOUNDLY DEFEATING EVANDER HOLYFIELD LAST NOVEMBER IN THE PAST 10 MONTHS BOWE HAS DEFENDED HIS CROWN TWICE AGAINST AN OVERTHEHILL MICHAEL DOKES AND THE ABOVEMENTIONED FERGUSON A LONGTIME PRELIMINARYBOUT WARRIOR BOWE'S NEXT SCHEDULED BOUT IS AGAINST HOLYFIELD WHO DOESN'T PROMISE TO IMPROVE WITH AGE THE BEST THING BOWE HAS DONE AS CHAMP IS THROW IN THE GARBAGE LITERALLY THE BELT OF THE WORLD BOXING COUNCIL ANOTHER OF THE SPORT'S NONREGULATING REGULATORS THE WBC IS RUN BY JOSE SULAIMAN WHO IS RUN BY PROMOTER DON KING SULAIMAN IS BEST REMEMBERED FOR HIS EFFORTS TO OVERTURN THE OUTCOME OF THE 1990 TITLE BOUT IN WHICH BUSTER DOUGLAS KNOCKED FLAT KING'S FIGHTER TYSON THE WBC RESPONDED TO BOWE'S GESTURE BY GIVING THE DISCARDED BELT OR ANOTHER TO LENNOX LEWIS WHO'D BEATEN BOWE AS AN AMATEUR A BOWELENNOX MATCH IS WIDELY DESIRED BUT LIKE BOWE LEWIS IS OTHERWISE OCCUPIED HIS NEXT FOE BEING THE MEDIOCRE FRANK BRUNO AT VARIOUS TIMES IN THE PAST THE US CONGRESS HAS LOOKED INTO INSTITUTING FEDERAL BOXING OVERSIGHT BUT BECAUSE OF OPPOSITION BY PROMOTERS AND OTHERS WITH A STAKE IN THE STATUS QUO BACKED OFF NOW COMES SEN WILLIAM ROTH JR RDEL WITH ANOTHER EFFORT SEN ROTH'S INTEREST IN BOXING REFORM WAS PIQUED WHEN HE WATCHED A CONSTITUENT MIDDLEWEIGHT DAVE TIBERI LOSE A DECISION HE THOUGHT TIBERI SHOULD HAVE WON ORDINARY FANS CAN ONLY GRIPE IN SUCH CIRCUMSTANCES SENATORS CAN LAUNCH INVESTIGATIONS ROTH'S BILL INTRODUCED IN JULY WITH BIPARTISAN COSPONSORSHIP WOULD ESTABLISH A PROFESSIONAL BOXING CORP TO SET AND ENFORCE MINIMUM HEALTH SAFETY AND BUSINESS STANDARDS FOR STATE AGENCIES AS WELL AS THE SOCALLED WORLD SANCTIONING OUTFITS AFTER A STARTUP LOAN THAT WOULD BE REPAID IT WOULD USE NO TAX DOLLARS ONLY BOXING REVENUES TO SUPPORT ITSELF AMONG OTHER THINGS PBC WOULD REQUIRE REGULAR PHYSICAL EXAMS FOR PROFESSIONAL BOXERS TIE THEM TO LICENSING AND ESTABLISH A CENTRAL DATABASE THAT WOULD CONTAIN FIGHTERS' HEALTH AND WONLOST RECORDS THIS SHOULD ELIMINATE THE SUBTERFUGE THAT SOMETIMES SURROUNDS SUCH SUBJECTS THE PBC ALSO WOULD PLUMP FOR NATIONAL UNIFORMITY IN REQUIRING ARMSLENGTH AGREEMENTS BETWEEN MANAGERS AND PROMOTERS AND PROHIBITING THE INFAMOUS CONTRACTS THROUGH WHICH PROMOTERS TIE UP FIGHTERS IN EXCHANGE FOR OFFERING THEM CHAMPIONSHIP SHOTS THE BILL DOESN'T GO FAR ENOUGH FOR INSTANCE IT WOULDN'T INVOLVE PBC IN POLICING DIVISIONAL RANKINGS THE MANIPULATION OF WHICH BY THE SANCTIONING BODIES AND THEIR PROMOTER COHORTS PERMITS SO MANY CHAMPIONSHIPBOUT MISMATCHES IN TOTAL THOUGH IT LOOKS LIKE A START TOWARD RIGHTING SOME OF THE SPORT'S WRONGS SO ENJOY TONIGHT'S BOUT THEN WRITE YOUR CONGRESSMAN AND TELL HIM TO BACK THE ROTH BILL 9309100021 930910 SMALL STOCK FOCUS PRICES REBOUND AS NEW ISSUES SURGE LED BY CORNERSTONE IMAGING'S DEBUT BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS ROSE AS NEW ISSUES CONTINUED TO BUBBLE WITH THE DEBUT OF CORNERSTONE IMAGING THE RUSSELL 2000 INDEX A MEASURE OF THE SMALLEST ISSUES ON THE NASDAQ MARKET AND NEW YORK AND AMERICAN STOCK EXCHANGES CLIMBED 162 OR 067 TO 24462 CORNERSTONE IMAGING LEAPED 3 1/2 OR 32 TO 14 1/2 ON ITS FIRST TRADING DAY THE STOCK WAS PRICED LATE WEDNESDAY THROUGH ITS LEAD UNDERWRITER ROBERTSON STEPHENS & CO AT 11 ABOVE ITS RANGE OF 8 1/2 AND 10 THE COMPANY OFFERED ABOUT 14 MILLION SHARES OF THE 18 MILLION SHARE OFFERING THE REMAINDER WERE OFFERED BY SELLING SHAREHOLDERS THE SAN JOSE CALIF SOFTWARE COMPANY MAKES DOCUMENTIMAGE PROCESSING SUBSYSTEMS THAT IMPROVE THE LEGIBILITY OF SMALL CHARACTERS IN BUSINESS DOCUMENTS THE STOCK IS TRADING AT 41 TIMES ANALYSTS' ESTIMATES OF 35 CENTS A SHARE FOR THIS YEAR WHICH WOULD MORE THAN DOUBLE LAST YEAR'S EARNINGS OF 15 CENTS A SHARE ROBERT NATALE A NEW ISSUES ANALYST WITH STANDARD & POOR'S SAID CORNERSTONE IMAGING HAS A LEADING POSITION IN A RAPIDLY GROWING NICHE MARKET HE ESTIMATES THAT THE COMPANY COULD EARN 70 CENTS A SHARE IN 1994 THE MONTHOLD MANUGISTICS ROSE 2 5/8 TO 12 3/4 ALEX BROWN & SONS THE UNDERWRITER FOR THE COMPANY'S INITIAL PUBLIC OFFERING INITIATED COVERAGED OF THE STOCK WITH A STRONG BUY IN MIDAUGUST MANUGISTICS OFFERED 24 MILLION SHARES AT 10 ALEX BROWN & SONS ANALYST W CHRISTOPHER MORTENSON ESTIMATES EARNINGS AT 45 CENTS A SHARE FOR THE FISCAL YEAR ENDING FEBRUARY 1994 HE EXPECTS EARNINGS OF 65 CENTS IN FISCAL 1995 BASED IN ROCKVILLE MD MANUGISTICS MAKES SOFTWARE FOR OPERATIONS MANAGEMENT APPLICATIONS WHICH HELPS COMPANIES PLAN AND TRACK MANUFACTURING AND DISTRIBUTION FUNCTIONS THROUGH ALL PHASES OF OPERATIONS SMALL STOCKS OVERALL BEGAN TO RECOVER FROM A TWODAY DROPOFF TRADERS SAID THE MARKET WAS KNOCKED DOWN PRETTY HARD AND THEY'RE BOUNCING BACK SAID PETER DAPUZZO HEAD OF OVERTHECOUNTER TRADING AT CANTOR FITZGERALD SMALL STOCKS CAN MOVE UP MORE EASILY AND RECOVER MORE QUICKLY INVESTORS BELIEVE SMALL COMPANIES WILL BE THE FIRST TO BENEFIT FROM ANY POSITIVE ECONOMIC NEWS A&W BRANDS SURGED 4 TO 24 1/4 CADBURY SCHWEPPES HAS CONFIRMED ITS LONGRUMORED AGREEMENT TO BUY THE WHITE PLAINS NY SOFTDRINK MAKER CADBURY ROSE 1/4 TO 28 7/8 THE PRICE OF 334 MILLION OR 2450 FOR EACH A&W SHARE WILL BE MET WITH A RIGHTS ISSUE OF NEW CADBURY SHARES TO RAISE 324 MILLION 4994 MILLION AFTER EXPENSES OPTICAL DATA SYSTEMS PLUNGED 5 5/8 TO 11 1/8 THE RICHARDSON TEXAS COMPUTER NETWORKING CONCERN SAID NET INCOME FOR THE THIRD QUARTER MAY BE DOWN 30 FROM THE 19 CENTS A SHARE REPORTED IN THE SECOND QUARTER IN 1992'S THIRD QUARTER THE COMPANY HAD NET OF 18 CENTS A SHARE AS REPORTED IN THE WALL STREET JOURNAL YESTERDAY THE COMPANY BLAMED SLOW ORDERS PARTICULARLY IN EUROPE DESPITE WHAT IT CALLED HIGH ACCEPTANCE FOR ITS NEW INFINITY SERIES OF COMPUTER NETWORKING HUBS ARKANSAS BEST JUMPED 1 7/8 TO 10 1/2 THE FORT SMITH ARK COMPANY SAID IT EXPECTS THIRDQUARTER EARNINGS TO BE IN THE RANGE OF THE YEAREARLIER'S 30 CENTS A SHARE THE TRANSPORTATION HOLDING COMPANY SAID THE RESULTS WOULD EXCEED ANALYSTS' ESTIMATES OF 21 CENTS TO 24 CENTS A SHARE FOR THE PERIOD ARKANSAS BEST SAID REVENUE WAS HIGHER THAN EXPECTED IN JULY AND AUGUST IN ITS ABF FREIGHT SYSTEM UNIT ITS MAJOR TRUCKING OPERATION AMSCO INTERNATIONAL NYSE DROPPED 1 1/8 TO 10 1/8 THE PITTSBURGH COMPANY SAID IT IS UNLIKELY IT WILL MEET ANALYSTS' ESTIMATES OF 10 CENTS TO 12 CENTS PER DILUTED SHARE IN THE THIRD QUARTER IT EARNED 23 CENTS A SHARE A YEAR EARLIER THE COMPANY BLAMED LOWER SALES IN JULY AND AUGUST COMPARED WITH YEARAGO LEVELS AND THE EXPECTATION OF CONTINUED SLUGGISHNESS AMSCO MANUFACTURES INFECTION CONTROL DECONTAMINATION AND SURGICAL PRODUCTS MOTHERS WORK TUMBLED 4 TO 13 1/2 AFTER TRADING ENDED WEDNESDAY THE PHILADELPHIA COMPANY SAID SAMESTORE SALES OR SALES IN STORES OPEN AT LEAST A YEAR FELL 179 IN AUGUST FROM A YEAR AGO THE SPECIALTY RETAILER OF MATERNITY CLOTHES SAID SAMESTORE SALES ALSO FELL 47 IN JULY FROM A YEAR AGO THE COMPANY SAID IT OPENED FIVE STORES IN JULY AND SEVEN IN AUGUST BRINGING THE NUMBER OF STORES TO 90 AS OF AUG 31 IN MARCH THE COMPANY PRICED ITS INITIAL PUBLIC OFFERING AT 13 THROUGH UNDERWRITERS LED BY WHEAT FIRST BUTCHER & SINGER YESTERDAY THE BROKERAGE FIRM LOWERED ITS SHORTTERM RATING OF THE STOCK TO SELL FROM BUY BUT LEFT UNCHANGED ITS LONGTERM BUY RECOMMENDATION NATURE FOOD CENTRES TUMBLED 4 1/4 TO 12 1/4 THE WILMINGTON MASS COMPANY SAID COSTS FROM STORE EXPANSION PLANS WILL REDUCE SLIGHTLY THIRD AND FOURTHQUARTER INCOME FROM CONTINUING OPERATIONS FROM LAST YEAR'S RESULTS 9309100020 930910 EXABYTE CUTS WORK FORCE BOULDER COLO EXABYTE CORP SAID IT REDUCED ITS PAYROLL BY 55 EMPLOYEES CONTINUING CUTBACKS THAT HAVE REDUCED THE COMPANY'S WORK FORCE BY 14 SINCE MARCH THE MAKER OF DATA STORAGE EQUIPMENT SAID EMPLOYMENT HAS FALLEN TO 1028 FROM A PEAK OF 1190 IN MARCH AFTER THE COMPLETION OF THREE SMALL ACQUISITIONS EXABYTE SAID THE SEVERANCE COSTS ASSOCIATED WITH THE REDUCTION WILL BE ACCRUED IN THE THIRD QUARTER BUT AREN'T EXPECTED TO HAVE A MATERIAL IMPACT ON RESULTS 9309100019 930910 BUSINESS BRIEF CRI INC JOINT VENTURE WILL ACQUIRE LOANS ON HOTELS AND RESORTS CRI INC A ROCKVILLE MD REAL ESTATE INVESTMENT FIRM SAID IT FORMED A JOINT VENTURE WITH A FOREIGN INVESTMENT BANK TO ACQUIRE LOANS VALUED AT 400 MILLION ON US HOTEL AND RESORT PROPERTIES THE FOREIGN BANK WAS NOT IDENTIFIED THE COMPANY INTENDS TO BUY PERFORMING AND NONPERFORMING LOANS WITH OUTSTANDING BALANCES BETWEEN 1 MILLION TO 10 MILLION FROM BANKS INSURANCE COMPANIES AND GOVERNMENT AGENCIES THEN POOL THEM FOR RESALE TO INVESTORS AS SECURITIES CRI WHICH MANAGES 10 REAL ESTATE INVESTMENT TRUSTS AND PUBLIC PARTNERSHIPS HAS BEEN BUYING REAL ESTATE LOANS PORTFOLIOS IN BULK FOR THE PAST TWO YEARS 9309100018 930910 STATE SECURITIES AGENCY SUES BAZARIAN OTHERS OVER ALLEGED FRAUD OKLAHOMA CITY THE OKLAHOMA DEPARTMENT OF SECURITIES SUED 20 PEOPLE AND SIX BUSINESSES INCLUDING CONVICTED BANK SWINDLER CHARLES J BAZARIAN TO RECOVER AT LEAST 2 MILLION IN ILLEGAL PROFITS FROM AN ALLEGED SCHEME TO MANIPULATE THE STOCK PRICES OF TWO COMPANIES THE SUIT FILED IN STATE COURT HERE ALLEGED THAT MR BAZARIAN CURRENTLY THE SUBJECT OF A FEDERAL BUREAU OF INVESTIGATION MANHUNT HIS SON HARRY C BAZARIAN 29 YEARS OLD AND THE OTHER DEFENDANTS PARTICIPATED IN A SCHEME TO INFLATE THE STOCK PRICES OF PERFORMANCE NUTRITION INC A DALLAS MAKER OF HEALTH FOODS AND REMINGTON FINANCIAL GROUP INC AN OKLAHOMA CITY FINANCIAL CONSULTING FIRM IN OVERTHECOUNTER TRADING BETWEEN NOVEMBER 1991 AND MARCH 1992 THE SUIT STATES PERFORMANCE NUTRITION'S STOCK ROSE TO A HIGH OF 750 A SHARE FROM A LOW OF 0375 A SHARE AND BETWEEN FEBRUARY 1992 AND JUNE 1992 REMINGTON'S STOCK SURGED TO A HIGH OF 250 A SHARE FROM FIVE CENTS A SHARE IRVING FAUGHT ADMINISTRATOR OF THE OKLAHOMA AGENCY SAID THE DEFENDANTS INCREASED THE ASSET VALUE OF RELATED SHELL COMPANIES BY TRANSFERRING TO THEM PACKAGES OF LOANS FROM FAILED SAVINGS AND LOAN INSTITUTIONS THEN THE SUIT ALLEGES THE DEFENDANTS ISSUED PHONY PRESS RELEASES AND USED OTHER PROMOTIONAL TACTICS TO INFLATE THE STOCKS' PRICES MR FAUGHT SAID CHARLES BAZARIAN PERSONALLY CONTROLLED THE COMPANIES' STOCKS AND WAS THE MASTERMIND OF THE SCHEME AN ATTORNEY FOR CHARLES BAZARIAN ROBERT MONTGOMERY SAID HE EXPECTS TO VIGOROUSLY CONTEST THE SUIT HARRY BAZARIAN DECLINED TO COMMENT FEDERAL AUTHORITIES ARE ALSO INVESTIGATING THE SCHEME MR MONTGOMERY SAID THE SECURITIES AND EXCHANGE COMMISSION AND A FEDERAL GRAND JURY HAVE BEEN REQUESTING DOCUMENTS AND TESTIMONY FROM SOME OF THE DEFENDANTS FOR SEVERAL MONTHS MR FAUGHT SAID HIS AGENCY WORKED CLOSELY WITH THE SEC AND THE US ATTORNEY AND SAID HE EXPECTS FURTHER CIVIL ACTIONS IN THE CASE BY FEDERAL AUTHORITIES THE FBI HAS BEEN LOOKING FOR THE ELDER MR BAZARIAN 57 YEARS OLD SINCE LAST WEEKEND WHEN HE DIDN'T RETURN TO FEDERAL CUSTODY AFTER BEING FREED ON A ONEDAY PASS TO ATTEND HIS DAUGHTER'S WEDDING MR BAZARIAN WAS BEING RETURNED TO PRISON FOR VIOLATING CONDITIONS OF A PAROLE GRANTED AFTER SERVING THREEANDAHALF YEARS IN FEDERAL PRISON ON CHARGES OF DEFRAUDING SAVINGS AND LOAN INSTITUTIONS IN FLORIDA CALIFORNIA AND OKLAHOMA 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 9309100017 930910 THURSDAY'S MARKETS SELLOFF SWEEPS BOND MARKET STOCKS RISE 056 BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL A SELLOFF THAT BEGAN OVERSEAS SWEPT THROUGH THE BOND MARKET DEVOURING A LARGE PORTION OF THE GAINS RACKED UP IN THE RECENT RALLY AND DRIVING LONGTERM INTEREST RATES BACK TO NEARLY 6 STOCK PRICES INCHED HIGHER WHILE THE DOLLAR FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE PLUMMETED DRIVING THE YIELD ON THE ISSUE TO 596 FROM 586 WEDNESDAY THE DOW JONES INDUSTRIAL AVERAGE CREPT UP 056 POINT TO 358949 AND STANDARD & POOR'S 500STOCK INDEX ROSE 085 TO 45750 BUT THE NASDAQ COMPOSITE INDEX JUMPED A ROBUST 698 TO 73771 ANALYSTS SAID FOREIGN INVESTORS BEGAN DUMPING US BONDS OVERNIGHT ON RUMORS THAT CONGRESS PLANNED TO CONSIDER REIMPOSING A 30 WITHHOLDING TAX ON FOREIGN INVESTMENTS IN US TREASURYS THE SELLING BEGAN IN TOKYO SPREAD TO LONDON AND THEN SWEPT THROUGH NEW YORK ACCELERATING AFTER AN AIDE ON THE HOUSE WAYS AND MEANS COMMITTEE SAID A HEARING ON THE INITIATIVE WAS PLANNED FOR SEPT 21 EVERYBODY WAS LOOKING FOR A CORRECTION SAID WAYNE F WONG SENIOR FIXEDINCOME STRATEGIST AT MARINVEST A SUBSIDIARY OF HONGKONG & SHANGHAI BANK THIS GAVE INVESTORS AN EXCUSE TO SELL MR WONG SAID A TAX ON FOREIGNERS' INVESTMENTS IN TREASURYS WOULD HURT THE BOND MARKET AND DRIVE UP INTEREST RATES OVER THE LONG TERM WE'VE SEEN THIS TYPE OF TAX PROPOSAL BEFORE AND IT ALWAYS GETS KNOCKED OUT HE SAID BUT A LOT OF PEOPLE THINK THIS ADMINISTRATION MAY BE MORE SERIOUS A SENIOR CLINTON ADMINISTRATION OFFICIAL SAID THE WHITE HOUSE WASN'T ACTIVELY CONSIDERING THE MEASURE BUT THE COMMENT HAD LITTLE IMPACT ON THE MARKET MR WONG SAID THE BOND MARKET DOWNTURN WAS JUSTIFIED BECAUSE THE RUNUP WAS FAR TOO EXTREME THE DROP IN INTEREST RATES WAS TELLING US WE'RE HEADING INTO A RECESSION HE SAID BUT IF YOU LOOK AT MOST ECONOMISTS' PREDICTIONS NO ONE IS LOOKING FOR LESS THAN 25 GROWTH IN GROSS DOMESTIC PRODUCT EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE BELIEVES THE BOND RALLY WILL RESUME HE SAID THE CLIMATE OF SLUGGISH ECONOMIC GROWTH AND SUBDUED INFLATION ARGUES FOR FURTHER DROPS IN LONGTERM INTEREST RATES POSSIBLY AS LOW AS 55 BY YEAR'S END AND 5 A YEAR LATER IN EUROPE GERMANY'S CENTRAL BANK LOWERED ITS DISCOUNT RATE TO 625 FROM 675 SPARKING A SERIES OF INTERESTRATE CUTS BY CENTRAL BANKS IN FRANCE BELGIUM ITALY THE NETHERLANDS AND AUSTRIA UNIMPRESSED TRADERS AND INVESTORS DUMPED THE DOLLAR UNLOADED SHARES IN SEVERAL OF EUROPE'S BIGGEST STOCK MARKETS AND LEFT MAJOR EUROPEAN BOND MARKETS LOWER OR MIXED THE DOLLAR FELL BECAUSE MOST PEOPLE IN THE MARKET BELIEVE THE GERMAN ECONOMY IS SET FOR RECOVERY AND THAT RATE CUTS WILL ACCELERATE THAT PROCESS SAID MICHAEL BURKE AN ECONOMIST AT CITIBANK IN LONDON BUT HE WARNED INVESTORS ARE BEING TOO OPTIMISTIC ABOUT THE MARK TOO SOON TRADERS AND ANALYSTS SAID THE BUNDESBANK IS STILL TOO WORRIED ABOUT GERMAN INFLATION TO GO ON A RATECUTTING BINGE THERE'S GOING TO BE NO MORE EASING UNTIL NOVEMBER SAID DAVID D HALE CHICAGOBASED CHIEF ECONOMIST AT KEMPER FINANCIAL COS MANY EUROPEAN STOCK MARKETS INITIALLY ROSE ON BUYING BY SECURITIES FIRMS AFTER THE BUNDESBANK ANNOUNCED ITS DISCOUNT RATE CUT BUT THEY FELL WHEN TRADERS BEGAN TO FOCUS MORE ON THE BANK'S MUCH LOWER 010 POINT CUT IN A KEY MONEYMARKET RATE MARKET MAKERS HAD ALL THIS EXTRA STUFF AND HAD TO SELL IT SAID JAMES CORNISH A STRATEGIST AT NATWEST MARKETS LTD IN LONDON SO THE PRICES WENT DOWN WORLDWIDE STOCK PRICES INCHED HIGHER IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 009 TO 11262 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2571 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1130 ISSUES ROSE AND 877 FELL BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST NEARLY 1 1/2 POINTS OR ALMOST 15 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16005 MARKS AND 10540 YEN COMPARED WITH 16130 MARKS AND 10560 YEN WEDNESDAY 9309100016 930910 BLUE CIRCLE SHARES RISE 5 ON NEWS OF UNIT'S PROFIT SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH CEMENT MAKER BLUE CIRCLE INDUSTRIES PLC FINDING PROFITS AT A UNIT IN AN UNLIKELY CORNER OF SOUTH AMERICA PRODUCED AN INTERIM EARNINGS REPORT THAT SENT ITS SHARE PRICE SOARING SHARES OF THE BUILDING MATERIALS MANUFACTURER JUMPED 5 TO 284 PENCE 438 PRETAX PROFIT WAS DOWN 30 TO 605 MILLION 933 MILLION FROM 864 MILLION BUT THAT DECLINE WAS LARGELY BECAUSE OF EXCEPTIONAL GAINS THAT BOOSTED ITS YEAREARLIER RESULT BY 401 MILLION A MORE ACCURATE MEASURE OF BUSINESS WAS THE 32 RISE IN OPERATING PROFIT TO 779 MILLION BOOSTED SIGNIFICANTLY BY CEMENT AND READYMIXED CONCRETE SALES IN CHILE TOTAL SALES WERE UP 40 TO 7988 MILLION FROM 5704 MILLION INDUSTRY ANALYSTS WHOSE OPERATING PROFIT FORECASTS GENERALLY WERE ABOUT 10 LOWER SAID THEY WERE AS SURPRISED BY THE SOURCE OF GROWTH AS BY THE GAIN ITSELF THE CHILEAN UNIT CEMENTO MELON REPORTED A 76 INCREASE IN OPERATING PROFIT TO 165 MILLION AFTER THE UK CHILEAN OPERATIONS PRODUCED THE BIGGEST OPERATING PROFIT FOR THE GROUP FAR SURPASSING THOSE OF THE US AND MAINLAND EUROPE WHERE SALES WERE MUCH HIGHER CHILE IS A PARTICULARLY GOOD PLACE TO SELL CEMENT BECAUSE IT'S A DEVELOPING COUNTRY BUILDING INFRASTRUCTURE AND PRICES ARE RELATIVELY HIGH BECAUSE THERE ISN'T THAT MUCH COMPETITION INDUSTRY ANALYSTS SAID GENERALLY ANALYSTS SAID THEY WILL BE BOOSTING THEIR FULLYEAR FORECASTS FOR THE COMPANY CURRENT ESTIMATES FOR THE YEAR AVERAGE 139 MILLION IN PRETAX PROFIT OUTSIDE CHILE BLUE CIRCLE'S RESULTS WERE MIXED ANALYSTS SAID THE OPERATING PROFIT IN THE UK FELL 24 TO 121 MILLION ANALYSTS WERE IMPRESSED BY THE COMPANY'S PERFORMANCE IN THE US WHERE SALES GROWTH IS BETTER THAN THE US NATIONAL AVERAGE THE COMPANY'S PRESENCE IN THE SOUTHERN STATES HAS HELPED PARTICULARLY IN ATLANTA WHERE CONSTRUCTION HAS PICKED UP IN ANTICIPATION OF THE 1996 OLYMPIC GAMES THEY SAID RECESSION IN FRANCE AND GERMANY WHERE THE COMPANY MAKES HEATING PRODUCTS KEPT PROFITS FLAT THERE BETTER PERFORMANCE IN ITALY HELPED BOOST THE TOTAL OPERATING PROFIT FROM MAINLAND EUROPE BY ABOUT 6 TO 99 MILLION 9309100015 930910 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY PERSONAL FINANCES REVOLVE AROUND THE FAMILY BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL FAMILIES MAKE FINANCES COMPLICATED ASK ANY NEW PARENT WHO IS SUDDENLY TALKING ABOUT FUNDING A COLLEGE EDUCATION ASK ANY NEWLYWED WHO IS BUSY CHANGING THE BENEFICIARIES ON HER COMPANY RETIREMENT PLAN OR ASK ANYBODY WHO HAS JUST REALIZED THAT HIS AGING PARENTS ARE NO LONGER ABLE TO CARE FOR THEMSELVES FOR MOST PEOPLE THIS IS WHAT PERSONAL FINANCE IS ALL ABOUT SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER WHEN YOU STRIP IT ALL DOWN PERSONAL FINANCE REVOLVES PRETTY MUCH AROUND THE FAMILY TRADITIONALLY FAMILY FINANCIAL PLANNING MEANT TAKING ON HOUSE PAYMENTS AND RAISING CHILDREN IN YOUR 20S AND 30S SENDING THE KIDS TO COLLEGE WHEN YOU WERE IN YOUR 40S AND FOCUSING ON ESTATE PLANNING AND GRANDCHILDREN IN YOUR 60S BUT WITH MANY PEOPLE DELAYING MARRIAGE AND CHILDREN AND WITH THE RISE OF SECOND MARRIAGES AND SECOND FAMILIES THE TRADITIONAL RULES HAVE BEEN BENT THESE DAYS FAMILIES MAY HAVE TO DEAL WITH TODDLERS AND AGING PARENTS AT THE SAME TIME OR THEY MAY BE FUNDING THEIR KIDS' EDUCATION JUST AS THEY BEGIN RETIREMENT THEY MAY EVEN HAVE CHILDREN AND GRANDCHILDREN STARTING COLLEGE AT THE SAME TIME TODAY'S FINANCIAL PLANNING DECISIONS ARE INFLUENCED LESS BY YOUR AGE THAN WHAT AGE YOUR KIDS ARE AND WHAT AGE YOUR PARENTS ARE SAYS VIRGINIA APPLEGARTH A BOSTON FINANCIAL AND INSURANCE ADVISER THE ONLY THING DEPENDENT ON YOUR AGE IS RETIREMENT PLANNING STILL THE BASIC RULES DON'T CHANGE FAMILIES NEED TO BALANCE CURRENT LIFESTYLE AGAINST FUTURE NEEDS SUCH AS A HOUSE DOWN PAYMENT COLLEGE TUITION OR RETIREMENT IN ADDITION AT EACH LIFE STAGE FAMILY MEMBERS HAVE TO CONSIDER THREE THINGS INVESTING INSURANCE AND WHAT THEY WILL LEAVE BEHIND THE TOOLS FOR DOING THIS ARE STRAIGHTFORWARD ADVISERS SAY EVERY FAMILY NEEDS SOME STOCKS OR STOCK MUTUAL FUNDS FOR GROWTH SOME FIXEDINCOME INVESTMENTS TO OFFSET STOCKMARKET VOLATILITY AND INSURANCE TO PROTECT AGAINST THE UNEXPECTED A WILL BY ITSELF OR COMBINED WITH SOME SORT OF TRUST TAKES CARE OF THE REST THE REALITY OF FAMILY AND FINANCES HOWEVER IS NEVER EASY MIXING FAMILY AND MONEY CAN BE HIGHLY EMOTIONAL THERE ARE FEW THINGS THAT ARE MORE INTIMATE AND MORE STRESS PRODUCING THAN FEARS ABOUT MONEY SAYS MR KOCHIS IT CAN BE DIFFICULT TO BALANCE THE NEEDS AND DESIRES OF ONE FAMILY MEMBER AGAINST ANOTHER WITHOUT CREATING ILL WILL WHAT HAPPENS WHEN ONE CHILD WANTS TO GO TO GRADUATE SCHOOL AND THE OTHER NEEDS A DOWN PAYMENT ON A NEW HOUSE WHAT HAPPENS IF YOUR PARENTS GET ILL JUST AS YOU ARE CLOSING ON YOUR NEW HOME THIS FAMILY BALANCING ACT CAN BE EASIER IF THERE IS GOOD COMMUNICATION ABOUT MONEY BETWEEN PARENTS AND CHILDREN THAT DOESN'T MEAN YOU ARE GOING TO SHOW THEM YOUR 1040 SAYS KAREN SPERO A CLEVELAND FINANCIAL PLANNER BUT IT DOES MEAN TEACHING YOUNG CHILDREN ABOUT MONEY AND INCLUDING OLDER CHILDREN WHEN MAKING FINANCIAL DECISIONS THAT AFFECT THEM YOU SHOULD FOR EXAMPLE TELL CHILDREN EARLY ON IF THE ONLY WAY YOU CAN AFFORD HARVARD OR YALE IS IF THEY GET A SCHOLARSHIP OR MAKE IT CLEAR THAT THEY'LL HAVE TO EARN MONEY TO HELP PAY THEIR COLLEGE LIVING EXPENSES THEY MAY NOT LIKE YOU VERY MUCH FOR THESE DISCUSSIONS SAYS MS SPERO BUT IF YOU WAIT UNTIL LATER AND HAVE TO BRING IT UP THEY WILL HATE YOU SHE CITES THE CASE OF ONE CHILD WHO LEARNED ONLY AFTER COLLEGE GRADUATION THAT HIS PARENTS HELD HIM RESPONSIBLE FOR PART OF THE LOANS THEY HAD TAKEN OUT TO PAY FOR HIS EDUCATION NOW SADDLED WITH A DEBT HE DIDN'T ASK FOR HE SAYS HE WOULD HAVE GONE TO A CHEAPER SCHOOL HAD HE KNOWN HE WOULD BE EXPECTED TO COME UP WITH THE MONEY EVEN WHEN YOUR CHILDREN ARE GROWN YOU NEED TO KEEP THEM INFORMED SO THAT THEY UNDERSTAND YOUR ESTATE PLANNING AND SO THEY CAN MAKE THEIR OWN PLANS YOU DON'T FOR EXAMPLE WANT THEM WAITING AROUND FOR AN INHERITANCE THAT MAY NOT EXIST IT'S NOT A GOOD IDEA FOR THE KIDS TO BE SHOCKED OR SURPRISED BY YOUR ESTATE PLAN SAYS MICHAEL FAY SENIOR PARTNER WITH THE LAW FIRM HALE & DORR BOSTON THAT CAN CAUSE GREAT FAMILY DAMAGE SUCH FAMILY FINANCIAL CONVERSATIONS ARE NEVER EASY BUT THEY ARE ALMOST ALWAYS HARDER FOR THE CHILDREN TO INITIATE SAYS MR FAY WHEN THE KIDS HAVE TO TAKE THE INITIATIVE THEY MAY BE VIEWED AS GREEDY OR GRASPING HE SAYS WHEN THE PARENTS TAKE THE INITIATIVE ALL THOSE PSYCHOLOGICAL CONCERNS CAN BE DISSIPATED EVEN THEN THOUGH IT MAY BE HARD FOR ONE GENERATION TO EMPATHIZE WITH THE CONCERNS OF THE OTHER EACH STAGE HAS ITS OWN CONCERNS ESTATE TAX AVOIDANCE ISN'T A HIGH PRIORITY FOR A 25YEAROLD AND RETIREES AREN'T LIKELY TO REMEMBER HOW HARD IT WAS TO SAVE FOR A BIGGER HOUSE BUT WHATEVER THE STAGE A LONGTERM VIEW IS ESSENTIAL THE DECISION YOU MAKE TODAY MAY LEAD TO THE BILL YOU PAY TOMORROW SENDING THE KIDS TO PRIVATE SCHOOL FOR EXAMPLE WILL PROBABLY LEAD TO PRIVATE COLLEGE AND THAT MAY PRECLUDE EARLY RETIREMENT OR A FAMILY VACATION HOME EVERYTHING IS A TRADEOFF SAYS MS SPERO THE CLEVELAND FINANCIAL PLANNER HOW YOU SPEND YOUR MONEY IS YOUR CHOICE BUT IF YOU CHOOSE TO DO THIS NOW IT MAY WELL MEAN THAT YOU MAY NOT BE ABLE TO DO THAT LATER SEE RELATED ARTICLES PROVIDING FOR FAMILY THROUGH THE AGES AND THAT LITTLE BUNDLE OF JOY WILL COST YOU A BUNDLE WSJ SEPT 10 1993 9309100014 930910 EXECUTIVE EDUCATION A SPECIAL REPORT PAYBACK MEAT AND POTATOES SOMETIMES THE MOST SUCCESSFUL COURSES ARE THE MOST BASIC BY ELLEN GRAHAM WHEN IT COMES TO BUYING EXECUTIVE EDUCATION SALESPEOPLE ARE SOME OF THE TOUGHEST CUSTOMERS AROUND FOR THEM AFTER ALL TIME IS MONEY TO ENTICE COMMISSIONED ACCOUNT EXECUTIVES AWAY FROM THEIR TERRITORIES AND INTO A CLASSROOM EVEN FOR A FEW DAYS MANAGEMENTEDUCATION VENDORS MUST PROMISE A DOLLARSANDCENTS PAYBACK IS THAT PROMISE FULFILLED TO FIND OUT THE WALL STREET JOURNAL INTERVIEWED PARTICIPANTS IN TWO ADVANCED SALES SEMINARS OFFERED BY THE AMERICAN MANAGEMENT ASSOCIATION ABOUT A YEAR HAD ELAPSED SINCE MOST HAD ATTENDED THE TWODAY COURSES GIVING THEM AMPLE TIME TO HAVE PUT THE LESSONS INTO PRACTICE OR TO HAVE FORGOTTEN EVERYTHING AT A TIME WHEN MANY CORPORATIONS ARE CLOSELY AND SKEPTICALLY SCRUTINIZING THE RETURN ON THEIR TRAINING DOLLAR THESE TWO AMA SEMINARS AT LEAST APPEAR TO BE DELIVERING THE GOODS MANY ATTENDEES AND THEIR EMPLOYERS CITED TANGIBLE BENEFITS RESULTING FROM THE TRAINING RANGING FROM INCREASED BILLINGS AND IMPROVED CUSTOMER SATISFACTION TO PERSONAL CAREER ADVANCEMENT WHEN ASKED BY A REPORTER NO ONE RATED THE COURSES LOWER THAN AN EIGHT ON A SCALE OF 10 ACCORDING TO THE AMA'S OWN FOLLOWUP QUESTIONNAIRE MORE THAN 98 OF ATTENDEES SAID THEY WOULD RECOMMEND THE COURSE TO COLLEAGUES THE NONPROFIT AMA BASED IN NEW YORK POSITIONS ITSELF AS AN EXECUTIVEEDUCATION SUPERMARKET IT HOLDS OVER 5000 DIFFERENT TRAINING SESSIONS ANNUALLY RANGING FROM ONEDAY SEMINARS TO INTENSIVE FOURWEEK PROGRAMS IN CONTRAST TO MANY OF THE MORE COSMIC UNIVERSITYBASED EXECUTIVEDEVELOPMENT PROGRAMS THE AMA LEANS TOWARD CONCISE SKILLBUILDING SEMINARS LED BY INSTRUCTORS WITH REALWORLD BUSINESS EXPERIENCE SUCH MEATANDPOTATOES TRAINING IS WELL WORTH EXAMINING PARTICULARLY AS COMPANIES BEGIN TO TAKE A MORE BOTTOMLINE APPROACH TO EXECUTIVE EDUCATION BY STICKING TO THE BASICS AND GIVING PRACTICAL ADVICE THAT CAN BE IMPLEMENTED QUICKLY AND EASILY THESE TARGETED COURSES ARE ATTRACTING AN INCREASING NUMBER OF COMPANIES COMPANIES TEND TO SELECT SHORT FOCUSED AMA SEMINARS TO HELP MANAGERS ENHANCE SKILLS AND PERFORMANCE FACTORS SAYS ALBERT A VICERE ASSOCIATE DEAN FOR EXECUTIVE EDUCATION AT PENNSYLVANIA STATE UNIVERSITY'S SMEAL COLLEGE OF BUSINESS MR VICERE WHO HAS JUST FINISHED A 10YEAR STUDY ON HOW COMPANIES DEVELOP EXECUTIVE TALENT USING EDUCATION SAYS LONGER UNIVERSITY PROGRAMS ARE THE CHOICE WHEN COMPANIES WANT TO STRETCH TOP EXECUTIVES BY EXPOSING THEM TO LEADINGEDGE THINKING AND ENABLING THEM TO BUILD NETWORKS WITH PEERS FROM AROUND THE WORLD CLEARLY IT'S THE NARROWER GOAL THAT BRINGS MANAGERS TO THE TWO AMA SEMINARS SALES FORCE PRODUCTIVITY AND VALUEADDED SELLING THE SEMINARS EACH LAST FOR TWO DAYS SEVEN HOURS A DAY THEY ARE HELD SIX TIMES A YEAR IN MAJOR CITIES LIKE NEW YORK CHICAGO ATLANTA AND LOS ANGELES TUITION IS 1260 FOR SALES FORCE PRODUCTIVITY AND 1145 FOR VALUEADDED SELLING THOUGH AMA MEMBER COMPANIES GET A SLIGHT DISCOUNT ATTENDANCE AT ANY GIVEN SESSION RANGES FROM 20 TO 35 PARTICIPANTS AND THE FORMAT INCLUDES LECTURES CASE STUDIES TEAM EXERCISES ROLE PLAYING AND VIDEOS OUR COMPETITION IS GETTING BETTER THE BAR IS BEING RAISED EVERY DAY SAYS DON COOPER PRESIDENT AND SALES MANAGER OF COOPER & COOK INSUE SERVICES IN PLEASANTON CALIF MR COOPER ATTENDED THE SALESPRODUCTIVITY COURSE AIMED AT MANAGERS RESPONSIBLE FOR SQUEEZING MORE FROM THEIR SALES ORGANIZATIONS IF WE ARE GOING TO SURVIVE HE SAYS WE HAVE TO DO A BETTER JOB ONE TECHNIQUE MR COOPER DREW FROM THE SEMINAR IS TARGETED MARKETING HIS 10PERSON SALES FORCE IS NOW DEVELOPING INSURANCE PACKAGES TAILORED TO SPECIFIC BUSINESSES SUCH AS GOLF COURSES THIS WAY AS YOU DEVELOP EXPERTISE IN A GIVEN INDUSTRY IT MAKES THE SALE MUCH EASIER HE SAYS MR COOPER WHO WAS NEW TO SALES MANAGEMENT WHEN HE TOOK THE COURSE HAS ALSO INTRODUCED FORMALIZED SALES QUOTAS AND HAS FIRED A FEW UNDERPERFORMERS PROSPECTS FOR INCREASED SALES IN THE NEXT 18 MONTHS ARE GOOD HE SAYS BECAUSE OF THE HIGHER QUALITY PEOPLE WE HAVE NOW INSTRUCTOR JIM HACKETT PRESIDENT OF BUNKER HILL CONSULTING GROUP IN PEABODY MASS HAS A DRACONIAN FORMULA THAT HE HAMMERS HOME AT EVERY AMA SESSION HE TEACHES HE MAINTAINS THAT COMPANIES NEED TO DEVISE WAYS TO OBJECTIVELY MEASURE THEIR EMPLOYEES' PERFORMANCE AND THEN SHED THE BOTTOM 10 EVERY YEAR OR SO OTHERWISE HE SAYS YOU'RE SAYING TO THE TOP 10 THAT PERFORMANCE DOESN'T COUNT BUT IN PRACTICE HE ARGUES CORPORATIONS TOLERATE MEDIOCRITY AND MANAGERS SPEND MOST OF THEIR TIME ON POOR PERFORMERS RATHER THAN GROOMING STARS TO ACHIEVE EVEN GREATER HEIGHTS SUCH THINKING WASN'T EXACTLY A REVELATION TO STEPHEN DONLY DISTRICT MANAGER FOR RYDER SYSTEM INC'S COMMERCIALLEASING AND SERVICES DIVISION IN CINCINNATI BUT HE FOUND THE COURSE VERY MOTIVATIONAL INSPIRING HIM TO FUNDAMENTALLY CHANGE HOW HE SUPERVISES EIGHT ACCOUNT MANAGERS RESPONSIBLE FOR TRUCK LEASING AND SERVICE IN HIS TERRITORY WHICH COVERS PARTS OF OHIO AND KENTUCKY INSTEAD OF FILING PERIODIC CONTACT REPORTS NOTING PAST SALES CALLS HIS ACCOUNT MANAGERS HAVE BEGUN RECORDING DAILY PERFORMANCE OBJECTIVES ON INDEX CARDS EACH SALESPERSON NOW SETS A DAILY GOAL TO EITHER SELL A NEW CLIENT OR TO PERFORM A SERVICE FOR AN EXISTING CLIENT THIS IS MUCH MORE PROACTIVE THAN THE OLD SYSTEM MR DONLY SAYS WE AREN'T INTERESTED IN AN AUTOPSY OF WHAT HAPPENED AS MUCH AS WHAT THEY ARE DOING TODAY TO ACHIEVE OBJECTIVES HE CREDITS THE NEW SYSTEM WITH A 19 IMPROVEMENT IN HIS DISTRICT'S QUARTERLY CUSTOMERSATISFACTION INDEX A SIGNIFICANT INCREASE OVER PAST PERIODS YEARTODATE SALES ARE UP 14 OVER THE PREVIOUS YEAR HE SAYS ADDING I THINK A PORTION OF THAT WAS A RESULT OF THE COURSE FOR GAIL SAKURADA COMPTROLLER FOR SALES AND MARKETING AT NATIONAL SEMICONDUCTOR CORP'S AMERICAS DIVISION IN SANTA CLARA CALIF THE SALESPRODUCTIVITY COURSE PROVED THE TICKET TO EXPANDED RESPONSIBILITIES ON THE JOB AS A RESULT OF THIS AND OTHER TRAINING SHE WAS RECENTLY NAMED PROJECT LEADER OF THE DIVISION'S NEW SALESINCENTIVE PLAN IN CHARGE OF REDESIGNING THE COMPENSATION OF THE DIVISION'S 200PERSON SALES STAFF INSTEAD OF PAYING COMMISSIONS SIMPLY FOR BILLINGS NATIONAL'S SALES ENGINEERS ALSO WILL BE REWARDED FOR STEPS TAKEN ON THE WAY TO WINNING THE ULTIMATE SALE FIGURING OUT HOW TO DO THAT EQUITABLY WAS MS SAKURADA'S JOB HER BOSS DENNIS HOERTT THE DIVISION'S SALES VICE PRESIDENT SAYS THE AMA SEMINAR HELPED MS SAKURADA STRETCH BEYOND HER ACCOUNTANT'S PERSPECTIVE SHE BECAME MORE OF A BUSINESS PERSON LESS OF A SCOREKEEPER HE SAYS INSTEAD OF MERELY REPORTING WHAT HAPPENED SHE CAN ACTIVELY PARTICIPATE IN IMPROVING THE SCORE IF MR HACKETT'S SALESPRODUCTIVITY COURSE IS INTENDED MAINLY FOR MANAGERS THE AMA'S POPULAR VALUEADDED SELLING SEMINAR IS DESIGNED FOR SALESPEOPLE AS WELL AS THEIR SUPERVISORS INSTRUCTOR PAUL GOLDNER TRIES TO STEER THEM AWAY FROM COMPETING ONLY ON PRICE A TACTIC HE TERMS THE DEATH OF THE SALESMAN BECAUSE SOMEONE CAN ALWAYS DO IT FOR LESS MR GOLDNER THE EXECUTIVE VICE PRESIDENT OF SALES & PERFORMANCE GROUP A NEW YORK SALESTRAINING FIRM OFFERS A DIFFERENT APPROACH SALESPEOPLE HAVE TO SELL MORE THAN JUST THEIR COMPANY'S PRODUCTS AND SERVICE HE SUGGESTS MOST IMPORTANT VENDORS MUST BE ABLE TO QUANTIFY IN HARD DOLLARS HOW THEY CAN DO BETTER THAN THE COMPETITION TO IMPROVE A CUSTOMER'S PROFITABILITY HE POINTS TO A STUDY SHOWING THAT THE PURCHASE PRICE OF A COMPUTER IS ONLY 25 OF THE TOTAL COST OF OWNERSHIP THE SALESMAN'S JOB IS TO SHOW THE CUSTOMER HOW TO MINIMIZE THAT TOTAL COST OF OWNERSHIP HE SAYS JOHN CASLIONE WHO ALSO CONDUCTS THE AMA'S VALUEADDED SELLING SEMINARS SEES THE STRATEGY AS A GRASSROOTS MOVEMENT THAT IS BUBBLING UP FROM SALES DIVISIONS TO SENIOR MANAGEMENT AND TRANSFORMING ENTIRE CORPORATE MARKETING STRATEGIES COMPANIES THAT FOCUS ON HOW TO GROW THEIR CUSTOMERS' BUSINESSES AND IMPROVE THEIR PROFITABILITY HAVE BEEN VERY SUCCESSFUL SAYS MR CASLIONE WHO IS PRESIDENT OF ANDREWWARD INTERNATIONAL INC A CHICAGO SALESTRAINING CONSULTING FIRM MR CASLIONE HELPED DESIGN THE VALUEADDED COURSE WHICH GREW OUT OF ONE OF THE AMA'S BIANNUAL COUNCIL MEETINGS WITH CORPORATE LEADERS IN VARIOUS FIELDS WHO KEEP THE AMA ABREAST OF THE BUSINESS COMMUNITY'S TRAINING NEEDS IN ONE CLASSROOM EXERCISE RANDY HABERMAN WAS ASKED TO LIST THE VALUE ADDED ACTIVITIES HIS COMPANY PROVIDES TO CUSTOMERS FOR MR HABERMAN THE DIRECTOR OF MANUFACTURING AT WELDCRAFT PRODUCTS INC A UNIT OF DOVER CORP BASED IN BURBANK CALIF THE PROCESS YIELDED FRESH INSIGHTS THE TROUBLE I HAD AND WE HAD AS A COMPANY WAS DEFINING OUR CUSTOMER MR HABERMAN SAYS HE EXPLAINS THAT AS A MANUFACTURER OF WELDING TORCHES WELDCRAFT SELLS THROUGH INDUSTRIAL WHOLESALERS WHO SELL TO DISTRIBUTORS WHO IN TURN SELL TO WELDING SHOPS SERVICE AND VALUE MEANT SOMETHING DIFFERENT TO EACH RETURNING TO WORK AFTER THE SEMINAR MR HABERMAN AND HIS COLLEAGUES WRESTLED WITH THE PROBLEM EVENTUALLY IDENTIFYING DISTRIBUTORS AS THEIR CHIEF CUSTOMERS WELDCRAFT'S SALES FORCE HAS BEEN REDEPLOYED ACCORDINGLY INSTEAD OF CONCENTRATING ON WHOLESALERS MR HABERMAN FIGURES HIS SALESPEOPLE NOW SPEND AT LEAST HALF THEIR TIME WITH DISTRIBUTORS NOW THEY ARE PITCHING TO THE PEOPLE WHO ARE ACTUALLY BUYING THE PRODUCT HE SAYS FURTHER MR HABERMAN SCRUTINIZED EACH OF THE COMPANY'S ACTIVITIES AND SERVICES TRYING TO IDENTIFY WHICH ADDED VALUE FOR THE CUSTOMER AND WHICH DID NOT ONE RESULT WELDCRAFT'S PURCHASING DEPARTMENT WAS REDUCED BY TWOTHIRDS THE COMPANY'S FACTORY MANAGERS NOW ORDER MOST RAW MATERIALS DIRECTLY FROM VENDORS VIA COMPUTER HELPING PREVENT SHORTAGES AND CUTTING COSTS THE IMPORTANCE OF SHOWING CUSTOMERS HOW YOUR PRODUCT CAN IMPROVE THEIR BOTTOM LINE WAS WHAT RUSSELL KIGER TOOK AWAY FROM THE VALUEADDED CLASS I'D NEVER EMPHASIZED THAT BEFORE SAYS MR KIGER WHO SELLS CITRUS FRUIT TO NATIONAL GROCERY CHAINS FOR A DUDA & SONS INC AN OVIEDO FLA GROWER LAST YEAR'S BUMPER CITRUS CROP AND LOWER PRICES HELPED DRIVE THIS SALES POINT HOME WITH CUSTOMERS HE SAYS MY SALES NUMBERS INCREASED SIGNIFICANTLY HE SAYS NOTING THAT HIS VOLUME ROSE TO 700000 BOXES OF FRUIT THIS SEASON FROM 589000 LAST YEAR HE ALSO PICKED UP SEVERAL NEW ACCOUNTS MR KIGER WHO TRIES TO TAKE A TRAINING SEMINAR DURING SLOW SUMMER MONTHS OBSERVED A FEW OTHER PARTICIPANTS AT HIS ATLANTA VALUEADDED CLASS DUCKING OUT AFTER THE FIRST DAY THEIR COMPANIES MADE IT MANDATORY HE SAYS AND THEY OBVIOUSLY DIDN'T WANT TO BE THERE NONETHELESS SHE FOUND THE VALUEADDED SALES SEMINAR INSTRUCTIVE AS MUCH FOR THE INPUT FROM OTHER PARTICIPANTS AS FROM THE INSTRUCTOR MS MALONE ISN'T CLASSIFIED A SALES PERSON BUT SHE DRAWS ON HER MANY CONTACTS IN THE TRANSIT INDUSTRY TO SCOUT NEW MARKETS FOR HER COMPANY'S RUBBERTIRED TROLLEYS SINCE I REALLY HAVEN'T BEEN TRAINED FOR SALES I NEEDED TO SEE WHAT OTHERS WERE DOING SHE SAYS EXPLAINING WHY SHE TOOK THE AMA COURSE ONE SEMINAR TACTIC SHE'S APPLYING ON THE JOB KNOW UPFRONT WHO THE DECISIONMAKERS ARE OTHERWISE SHE SAYS YOU CAN SPEND HOURS AND HOURS TALKING WITH SOMEONE AND THEN FIND OUT THEY DON'T HAVE THE AUTHORITY TO MAKE THE PURCHASE OR DON'T KNOW WHETHER THEY WANT THIS WIDGET OR THAT ONE MS GRAHAM IS A NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9309100013 930910 BUSINESS BRIEF TEXACO INC COMPANY BRITISH GAS AGREE TO DEVELOP NATURAL GAS SITE TEXACO INC AND BRITISH GAS PLC AGREED TO SPEND 300 MILLION TO DEVELOP A NATURAL GAS FIELD 50 MILES OFF THE EAST COAST OF TRINIDAD AND TOBAGO THE OIL COMPANIES AGREED TO SUPPLY THE COUNTRY WITH NATURAL GAS FROM THE SOCALLED DOLPHIN FIELD FOR 20 YEARS TEXACO IN WHITE PLAINS NY AND BRITISH GAS IN LONDON ALSO AGREED TO EXPLORE FOR ADDITIONAL GAS RESERVES ELSEWHERE OFF THE COAST THE DOLPHIN FIELD IS LOCATED IN 400 FEET OF WATER TEXACO SAID PRODUCTION IS EXPECTED TO BEGIN IN 1996 AT 87 MILLION CUBIC FEET OF GAS A DAY AND GROW TO 275 MILLION CUBIC FEET DAILY BY 2003 9309100012 930910 BUSINESS BRIEF COLTEC INDUSTRIES INC OFFICES OF HOLLEY DIVISION WILL BE MOVED TO KENTUCKY COLTEC INDUSTRIES INC NEW YORK SAID IT WILL MOVE THE ADMINISTRATIVE OFFICES AND WAREHOUSE OPERATIONS OF ITS HOLLEY REPLACEMENT PARTS DIVISION TO A SITE NEAR ONE OF THE DIVISION'S MANUFACTURING OPERATIONS IN BOWLING GREEN KY THE MOVE WILL RESULT IN AN UNSPECIFIED NUMBER OF LAYOFFS HOLLEY'S ADMINISTRATIVE OFFICES ARE LOCATED IN WARREN MICH AND THE WAREHOUSE OPERATIONS ARE IN GOODLETTSVILLE TENN COLTEC MAKES PRODUCTS FOR AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL MARKETS 9309100011 930910 BUSINESS BRIEF PEPSICO INC NEW TAX LAW IS EXPECTED TO REDUCE 1993 EARNINGS PEPSICO INC SAID IT EXPECTS NEW FEDERAL TAX LEGISLATION TO REDUCE 1993 EARNINGS BY ABOUT FIVE CENTS A SHARE THE PURCHASE NY FOOD AND BEVERAGE COMPANY EXPECTS TO TAKE TWO TAXLAW CHARGES IN THE THIRD QUARTER THE FIRST WOULD AMOUNT TO FOUR CENTS A SHARE TO ADJUST NETDEFERRED TAX LIABILITIES AS REQUIRED UNDER SFAS 109 THE SECOND WOULD AMOUNT TO ABOUT A PENNY A SHARE REFLECTING A 1 INCREASE IN THE CORPORATE TAX RATE RETROACTIVE TO THE BEGINNING OF THE YEAR IN THE YEARAGO THIRD QUARTER PEPSICO HAD NET INCOME OF 4257 MILLION OR 53 CENTS A SHARE 9309100010 930910 BUSINES BRIEF LONE STAR INDUSTRIES INC COMPANY SELLS ITS HOLDING IN BRAZILIAN CEMENT CONCERN LONE STAR INDUSTRIES INC STAMFORD CONN SAID IT SOLD ITS 496 INTEREST IN BRAZILIAN CEMENT MANUFACTURER COMPANHIA NACIONAL DE CIMENTO PORTLAND AG FOR 696 MILLION THE SALE RESULTED IN A LOSS OF 248 MILLION OR 149 A SHARE ABOUT 76 MILLION LESS THAN LONE STAR HAD PREVIOUSLY FORECAST THE CONSTRUCTION MATERIALS COMPANY SAID LOSSES WERE REDUCED BY A MORE FAVORABLE FOREIGN EXCHANGE RATE AND A HIGHER MARKET VALUE OF SHARES OF LAFARGE COPPEE SA BASED IN PARIS WHICH PURCHASED THE INTEREST THE PROCEEDS WERE BASED ON THE VALUE OF SHARES OF LAFARGE COPPEE WHICH OWNS THE REMAINING INTEREST 9309100009 930910 THE WAR ON WASTE AGAIN BY J PETER GRACE IT WAS JEFFERSON MADISON AND HAMILTON WHO REINVENTED GOVERNMENT AMERICANS TODAY SHOULDER THE TASK OF CUTTING DOWN TO SIZE THE BLOATED MONSTER GOVERNMENT HAS BECOME TAMING THE FEDERAL LEVIATHAN HAS BEEN ATTEMPTED MANY TIMES IN THIS CENTURY AT A CLIP OF ROUGHLY ONE EFFORT PER DECADE TEDDY ROOSEVELT'S KEEP COMMISSION THE TAFT COMMISSION HARDING'S COMMISSION ON ECONOMY AND EFFICIENCY TWO HOOVER COMMISSIONS AND SO ON IN 1982 PRESIDENT REAGAN ASKED ME TO HAVE SOME OF AMERICA'S BEST BUSINESS BRAINS TAKE A HARD LOOK AT THE WAY THE GOVERNMENT WORKS AFTER TWO YEARS WE HANDED HIM A 47VOLUME REPORT CONTAINING 2478 RECOMMENDATIONS TO SAVE 4244 BILLION WHEN FULLY IMPLEMENTED AND WE DID IT ALL AT NO COST TO THE TAXPAYERS MANY GRACE RECOMMENDATIONS WERE ENACTED SAVING TAXPAYERS 250 BILLION SINCE 1986 SIGNED SEALED AND DELIVERED WHILE VICE PRESIDENT GORE'S NATIONAL PERFORMANCE REVIEW HAS TAKEN GOOD IDEAS FROM ITS PREDECESSORS AND INTRODUCED MANY OF ITS OWN IT USES A BUTTER KNIFE ON A JOB THAT REQUIRES A CHAIN SAW THE 108 BILLION IN SAVINGS OVER FIVE YEARS PROPOSED BY THE NATIONAL PERFORMANCE REVIEW JUST WON'T MEAN MUCH TO A NATION HEADING TOWARD COMPLETE BANKRUPTCY AT THE RATE OF A BILLION DOLLARS A DAY EVEN IF WE MANAGE TO SAVE THE 108 BILLION THAT'S ONLY 13 OF FEDERAL SPENDING OVER FIVE YEARS THUS MR GORE'S VAUNTED REINVENTING OF GOVERNMENT IS A MONUMENTAL EXAGGERATION NO MATTER HOW MANY FORKLIFTS ARE SEEN IN THE BACKGROUND BY CONTRAST THE GRACE COMMISSION PROPOSED CUTTING 14 OF ALL FEDERAL SPENDING THE FIRST HOOVER COMMISSION 194749 105 SO EVEN AS REVOLUTIONARY RHETORIC SOARS EXPECTATIONS DROP IN A CLOSEDDOOR BRIEFING FOR SENIOR CAPITOL HILL STAFFERS JUST BEFORE THE REVIEW'S RELEASE NATIONAL PERFORMANCE REVIEW OFFICIAL ELAINE KAMARCK EMPHASIZED THIS IS NOT AN EXERCISE IN BUDGET CUTTING SADLY SHE WAS CORRECT EVEN SO THE NATIONAL PERFORMANCE REVIEW HAS SOME GOOD IDEAS TO ITS CREDIT IT ADOPTS MANY GRACE COMMISSION RECOMMENDATIONS AND PROPOSES MANY OTHER NEEDED FUNDAMENTAL CHANGES THE VICE PRESIDENT TOLD TODAY SHOW VIEWERS THIS WEEK THAT HE WAS SHOCKED TO FIND THERE WAS NO UNIFORM ACCOUNTING STANDARD IN THE FEDERAL GOVERNMENT WELCOME TO GOVERNMENT ACCOUNTING 101 THE GRACE COMMISSION FOUND 332 INCOMPATIBLE ACCOUNTING SYSTEMS ALONG WITH 319 SEPARATE PAYROLL SYSTEMS AND RECOMMENDED FOLDING THEM INTO ONE THE NATIONAL PERFORMANCE REVIEW FOUND 287 DIFFERENT ACCOUNTING SYSTEMS AND SAID THEY SHOULD BE CONSOLIDATED UNFORTUNATELY BASED ON THE NINE YEARS IT'S APPARENTLY TAKEN TO GET RID OF 45 OF THOSE RELICS WE WON'T HAVE UNIFICATION UNTIL THE YEAR 2050 NATIONAL PERFORMANCE REVIEW INITIATIVES AIMED AT THE CONSOLIDATION OF REDUNDANT OR ANACHRONISTIC AGENCIES PRIVATIZATION REGULATORY REFORM AND BRINGING BUSINESS ACUMEN TO BUREAUCRACY MANAGEMENT ARE LAUDABLE IDEAS IN THE SPIRIT OF THE GRACE COMMISSION THE GRACE COMMISSION IDENTIFIED SERIOUS STRUCTURAL AND PROCEDURAL PROBLEMS IN EXECUTIVE BRANCH MANAGEMENT PROCESSES ORGANIZATION INFORMATION FLOW BUDGETING PLANNING AND EVALUATION CONTINUITY OF MANAGEMENT AND COMMUNICATIONS PROCESSES SOUND FAMILIAR THE NATIONAL PERFORMANCE REVIEW NOTES THAT THE FEDERAL GOVERNMENT IS FILLED WITH GOOD PEOPLE TRAPPED IN BAD SYSTEMS BUDGET SYSTEMS PERSONNEL SYSTEMS PROCUREMENT SYSTEMS FINANCIAL MANAGEMENT SYSTEMS INFORMATION SYSTEMS LET'S HOPE THAT 10 YEARS FROM NOW ANOTHER REPORT WON'T DRAW THE SAME CONCLUSIONS UNFORTUNATELY THE NATIONAL PERFORMANCE REVIEW ALSO CONTAINS A NUMBER OF OMISSIONS AND HALFMEASURES WHY PRIVATIZE ONE OF THE NATION'S POWER MARKETING ADMINISTRATIONS AND NOT ALL FIVE IT ADVOCATES REDUCTION RATHER THAN ELIMINATION OF AN ESSENTIAL AIR SERVICES PROGRAM THAT SUBSIDIZES AIR FARES OF WASHINGTONIANS WINGING THEIR WAY TO THE POSH HOMESTEAD RESORT FOR VACATIONS OR CONGRESSIONAL JUNKETS THE GORE FOLKS COULD FIND ONLY 15 OBSOLETE PROGRAMS IN THE ENTIRE BUREAUCRACY THERE MUST BE AT LEAST THAT MANY IN THE AGRICULTURE DEPARTMENT ALONE PAYMENTS TO INDIVIDUALS ARE MORE THAN TWOTHIRDS OF FEDERAL SPENDING AND HAVE INCREASED AS A PERCENTAGE OF GNP BY MORE THAN SEVEN PERCENTAGE POINTS SINCE THE KENNEDY ADMINISTRATION AS AN EXAMPLE THERE ARE NOW 1032 SEPARATE AND DISTINCT SOCIAL PROGRAMS ANY ATTEMPT AT REINVENTION THAT DOES NOT ADDRESS THE ENORMOUS SIZE OF THIS EXPENSE CANNOT DELIVER REAL CHANGE MANY GOOD WASTECUTTING IDEAS WEREN'T PROPOSED AT ALL BY THE NATIONAL PERFORMANCE REVIEW FOR EXAMPLE THE RURAL ELECTRIFICATION ADMINISTRATION HAS LONG OUTLIVED ITS MANDATE TO BRING ELECTRICITY AND TELEPHONE SERVICE TO AMERICA'S HINTERLANDS THIS YEAR CITIZENS AGAINST GOVERNMENT WASTE THE FOLLOWON ORGANIZATION TO GRACE CULLED PUBLIC AND PRIVATE SOURCES AND CONSOLIDATED SEVERAL HUNDRED RECOMMENDATIONS INTO ONE PACKAGE THAT COULD SAVE TAXPAYERS NEARLY 12 TRILLION OVER FIVE YEARS NOW THAT'S A NUMBER EVEN VETERAN WASTE WARRIORS LIKE ME CAN GET EXCITED ABOUT WHILE I'M AT IT I WANT TO SET THE RECORD STRAIGHT FOR THOSE WHO THINK THE GRACE COMMISSION WAS A BUNCH OF RIGHTWING ANTIGOVERNMENT REPUBLICAN OUTSIDERS I'VE BEEN A DEMOCRAT MY WHOLE LIFE AND SO WERE MANY OF THE CEOS ON THE COMMISSION'S EXECUTIVE COMMITTEE LIKE VICE PRESIDENT GORE WE SPOKE TO THE PEOPLE IN THE TRENCHES OUR ENVIRONMENTAL PROTECTION AGENCY REPORT SPEAKS FOR ITSELF INITIALLY MORE THAN 200 EPA EMPLOYEES WERE INTERVIEWED IN A DIAGNOSTIC SURVEY THAT IDENTIFIED AREAS FOR FURTHER STUDY THE FINAL REPORT IS BASED UPON DISCUSSIONS WITH OVER 300 AGENCY EMPLOYEES REPRESENTATIVES OF EIGHT STATE ENVIRONMENTAL AGENCIES AND VISITS TO REGIONAL OFFICES AND MANY LABORATORY FACILITIES SINCE WE TALKED TO FEDERAL WORKERS AND THE NATIONAL PERFORMANCE REVIEW TALKED TO FEDERAL WORKERS NO ONE SHOULD BE SURPRISED AT THE SIMILAR RESULTS OF COURSE BUREAUCRATS INVOLVED IN THE DAYTODAY OPERATIONS OF GOVERNMENT SHOULD BE CONSULTED BUT TAXPAYERS ARE LESS INTERESTED IN BUILDING A BETTER BUREAUCRAT THAN IN GETTING THE BUREAUCRACY OFF THEIR BACKS AND OUT OF THEIR WALLETS CITIZENS AGAINST GOVERNMENT WASTE DESERVES A LARGE MEASURE OF THE CREDIT FOR EDUCATING THE CITIZENRY ABOUT THIS ISSUE AND FOSTERING A POLITICAL CLIMATE THAT MADE THE GORE EFFORT IMPERATIVE RATHER THAN OPTIONAL ANY ADMINISTRATION WILLING TO SPILL SOME BLOOD RAIDING LEGISLATIVE FIEFDOMS WILL GAIN POLITICAL CAPITAL WHERE IT REALLY COUNTSWITH THE PEOPLE OLD AND NEW REFORMERS ALIKE SHOULD WORK TO STRENGTHEN SOME OF THE WEAKER PROPOSALS LOBBY HARD FOR THE INCLUSION OF THOSE THAT WERE IGNORED OR DELETED AND DRIVE A BULLDOZER THROUGH THE WINDOW OF OPPORTUNITY CRACKED OPEN BY THE NEW ADMINISTRATION LET'S HOPE THAT THE NATIONAL PERFORMANCE REVIEW WILL MARK AN END TO THE PARALYZING POLITICIZATION OF THE WASTE ISSUE AND THE DAWNING OF A TRULY BIPARTISAN APPROACH TO REFORM MR GRACE IS CHAIRMAN OF WR GRACE & CO AND COCHAIRMAN OF CITIZENS AGAINST GOVERNMENT WASTE 9309100008 930910 EXECUTIVE EDUCATION A SPECIAL REPORT PAYBACK PUTTING ONE COURSE TO THE TEST BY GILBERT FUCHSBERG WE'VE ALL BEEN THERE GATHERED AROUND A CONFERENCE TABLE DOODLING ON OUR PADS FEIGNING INTEREST IN THE OVERHEADS AS A COLLEAGUE PITIFULLY JITTERS ABOUT ARMS WAVING LOOKING EVERY WHICH WAY MUMBLING THROUGH A CRUCIAL PRESENTATION IT'S ENOUGH TO MAKE MOST COMPANIES WELL THROW UP THEIR HANDS ARTHUR ANDERSEN & CO SC HOWEVER HAS FOUND A CURE FOR THE OFTEN POOR PRESENTATION SKILLS OF EXECUTIVES AND MANAGERS AND WHAT ANDERSEN HAS DONE TO PROVE ITS APPROACH SHOWS THE EXTENT TO WHICH SOME COMPANIES NOW GO TO TEST THE EFFECTS OF THEIR EXECUTIVEEDUCATION EFFORTS ANDERSEN'S TWODAY COURSE ON EFFECTIVE PRESENTATIONS HAS LONG BEEN ONE OF THE MOST POPULAR OFFERINGS OF ITS INHOUSE TRAINING CENTER IN ST CHARLES ILL ANNUALLY DRAWING HUNDREDS OF PARTNERS AND MANAGERS BUT UNTIL A FEW YEARS AGO THE CHICAGO ACCOUNTING AND CONSULTING FIRM DIDN'T KNOW WHETHER THE COURSE WORKED THAT IS WHETHER IT ACTUALLY IMPROVED THE WAY PEOPLE CAME ACROSS WHEN PITCHING PROSPECTIVE CLIENTS OR PRESSING A CASE TO COWORKERS SO ANDERSEN VIDEOTAPED A BUNCH OF EXECUTIVES' PRESENTATIONS DURING THE COURSE AND AGAIN MONTHS LATER TO SEE WHETHER THE LEARNING STUCK RESEARCHERS THEN ANALYZED THE TAPES AND METICULOUSLY RATED EACH PRESENTER ON A GAMUT OF BEHAVIOR MAKE THAT VERY METICULOUSLY TOO MANY SHIFTS IN HEAD MOVEMENT SUGGESTED POOR EYE CONTACT FOR EXAMPLE WHILE HANDS JOINED IN THE FIG LEAF OR PRAYING POSITIONS MADE FOR INEFFECTIVE GESTURES MORE EFFECTIVE ONE OR BOTH HANDS BEING MOVED ABOVE ELBOW HEIGHT OR RESTING AT ONE'S SIDES THEN THERE WERE THE MEASUREMENTS FOR LOWER BODY MOVEMENT/STANCE ACCORDING TO THE COMPANY'S STUDY PARTICIPANTS WERE THOUGHT TO BE STANDING APPROPRIATELY IF THEY HAD THEIR FEET STATIONARY AND SHOULDER WIDTH APART WEIGHT EVENLY DISTRIBUTED AN INEFFECTIVE RATING WOULD BE GIVEN TO SOMEONE WITH WEIGHT UNEVENLY DISTRIBUTED OR WHO WAS PACING ROCKING OR TURNING TOWARD FLIPCHART OR OVERHEAD SCREEN NONWORDS UMHS AHS FILLERS RESTARTING A WORD OR SENTENCE WERE LOGGED IN 15SECOND INTERVALS MARKS WERE ASSIGNED ON VOICE PROJECTION ORGANIZATION OF CONTENT AND OVERALL PRESENTATION AND PARTICIPANTS COMPLETED WRITTEN SURVEYS TOO TO GAUGE THEIR PERCEPTIONS ABOUT THE COURSE THE RESULTS PARTICIPANTS BECAME MORE POLISHED IN VIRTUALLY EVERY AREA THE BIGGEST EXCEPTION NO SIGNIFICANT DIFFERENCES WERE NOTED IN HEAD SHIFTS ACCORDING TO THE STUDY SUGGESTING THAT INDIVIDUALS DID NOT INCREASE DURATION OF EYE CONTACT DURING PRESENTATIONS ON A POSITIVE NOTE ANDERSEN DID RECORD SOMEWHAT LESS GLANCING AT THE FLOOR CEILING OR WALLS AMONG ALUMNI OF THE COURSE BUT THE IMPROVEMENTS WEREN'T SIGNIFICANT AND 16 OF 18 EXECUTIVES IN THE STUDY BELIEVED THEIR PRESENTATIONS HAD GREATER IMPACT AS A RESULT OF THE COURSE THE OTHER TWO SAID THEIR IMPACT HADN'T CHANGED MOREOVER ANDERSEN'S STUDY SAYS MANY INDICATED THAT THEY HAD LEARNED MORE IN THIS COURSE THAN IN ANY OTHER THEY HAD COMPLETED WHILE AT THE FIRM ANDERSEN OFFICIALS SAY THEY WOULD LIKE TO APPLY THE SAME STRICT MEASURES TO EVERY TRAINING COURSE THEY RUN AND THEY'RE TRYING THE COMPANY MAINTAINS A 13PERSON TRAINING EVALUATION STAFF BUT THE FIRM HAS FOUND IT'S MUCH EASIER TO ANALYZE THE RESULTS OF FOCUSED TECHNICAL TRAINING IN SUCH AREAS AS PRESENTATION SKILLS OR A SPECIFIC PART OF THE TAX CODE THAN THE TYPE OF BROAD AMORPHOUS LEADERSHIP SCHOOLING TYPICAL OF SO MANY EXECUTIVEEDUCATION PROGRAMS PRESENTATIONS ARE ONE THING SAYS DARRYL JINKERSON ANDERSEN'S DIRECTOR OF EVALUATION SERVICES EXECUTIVE TRAINING IN GENERAL WELL THE RESEARCH JUST ISN'T AS NICE AND CLEAN 9309100005 930910 WHO'S NEWS DUN & BRADSTREET SAYS GLOVER RESIGNS POST AS PRESIDENT OF UNIT NEW YORK DUN & BRADSTREET CORP SAID RON K GLOVER RESIGNED AS PRESIDENT OF ITS DUN & BRADSTREET INFORMATION SERVICES NORTH AMERICA UNIT WHICH WAS OVERHAULED FOLLOWING COMPLAINTS IN THE LATE 1980S ABOUT THE MANAGEMENT OF ITS CREDITREPORTING BUSINESS THE COMPANY SAID THE 53YEAROLD MR GLOVER WILL BE SUCCEEDED BY VOLNEY TERRY TAYLOR 53 WHO WILL CONTINUE IN HIS CURRENT POSITION AS CHAIRMAN OF INFORMATION SERVICES MR GLOVER WAS BROUGHT IN TO LEAD THE BUSINESS CREDIT SERVICES UNIT IN MARCH 1990 WHEN THE COMPANY WAS COPING WITH COMPLAINTS BY CUSTOMERS THAT THE COMPANY SOLD THEM SERVICES THEY DIDN'T NEED AND PROVIDED SLOPPY AND POORLY PREPARED CREDIT REPORTS SINCE THEN THE BUSINESSCREDIT SERVICES ARM RECEIVABLESMANAGEMENT AND BUSINESSMARKETING SERVICES HAVE BEEN MERGED INTO AN INFORMATION SERVICES DIVISION MR GLOVER SAID HE'S LOOKING INTO PROFESSIONAL POSSIBILITIES WITH A MORE INTERNATIONAL BENT BUT HASN'T DECIDED ON HIS NEXT POSITION THE COMPANY SAID MR GLOVER IS LEAVING ON GOOD TERMS AND CREDITS HIM WITH DEVELOPING A MARKETING STRATEGY THAT HAS ENABLED DUN & BRADSTREET TO BRANCH INTO OTHER AREAS SUCH AS PROVIDING INFORMATION TO THE LEGAL AND PURCHASING MARKETS MR GLOVER ADDED THAT HE HAD BEEN AT DUN & BRADSTREET LONG ENOUGH TO ACCOMPLISH WHAT I WAS HIRED TO DO AND THAT IS TO INTEGRATE SERVICES AND BRING MORE PERSONALIZED SERVICE TO THE MARKETPLACE HE NOTED THAT THE COMPANY REVERSED THE DECLINE OF ITS TROUBLED US CREDIT SERVICES UNIT AND OVERALL RESULTS HAVE IMPROVED GREATLY THE COMPANY SAID IT DOESN'T PLAN ANY MAJOR STRATEGY CHANGES IN ITS INFORMATION SERVICES UNIT 9309100004 930910 DEVLIEGBULLARD SEES RESULTS IMPROVING ON PICKUP IN ORDERS WESTPORT CONN DEVLIEGBULLARD INC BELIEVES AN AGGRESSIVE REVAMPING OF OPERATIONS AND A PICKUP IN ORDERS IS HELPING TO PUT MOST OF ITS RECENT TROUBLES BEHIND IT THE COMPANY WHICH PROVIDES PARTS AND MACHINE REBUILDING SERVICES TO MACHINE TOOL OPERATORS SAID IT EXPECTS FISCAL FOURTHQUARTER PROFIT OF 800000 TO 900000 OR SIX CENTS TO SEVEN CENTS A SHARE IT HAD A LOSS OF 81 MILLION OR 68 CENTS A SHARE A YEAR EARLIER BILL THOMAS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID DEVLIEGBULLARD EXPECTS TO REPORT REVENUE OF 14 MILLION TO 15 MILLION IN THE FISCAL FOURTH QUARTER ENDED JULY 31 REVENUE A YEAR AGO WAS 17 MILLION BUT INCLUDED BETWEEN 1 MILLION AND 2 MILLION IN AN UNUSUAL SHIPMENT OF ORDERS MR THOMAS SAID THE COMPANY REPORTED POOR RESULTS IN 1992 MAINLY BECAUSE ITS RECESSIONHURT CUSTOMERS SHELVED PLANS TO REPLACE MACHINE PARTS AND REBUILD RUNDOWN MACHINES BUT AS THE COUNTRY COMES OUT OF THE RECESSION AND AS BUSINESSES HAVE TO DEAL WITH THE PROBLEM OF REBUILDING THEIR MACHINES WE'LL GET A LOT OF BUSINESS OUT OF THEM MR THOMAS SAID THE COMPANY PRIMARILY REMANUFACTURES WORNOUT MACHINE TOOLS REBUILD ORDERS RANGE FROM 50000 TO SEVERAL MILLION DOLLARS REBUILDING PARTS AND SERVICES CONTRIBUTES ABOUT 26 MILLION OR 45 TO OVERALL ANNUAL REVENUE THE COMPANY SELLS ITS PRODUCTS AND SERVICES MAINLY TO LARGE CORPORATIONS INCLUDING GENERAL ELECTRIC CO AND BOEING CO AND LARGE MACHINE SHOPS MUCH OF THE IMPROVED RESULTS REFLECTS AN OPERATIONS OVERHAUL MR THOMAS SAID THE COMPANY CLOSED FOUR FACILITIES AND LAID OFF 60 SALARIED EMPLOYEES OR ABOUT 20 OF ITS SALARIED WORK FORCE IN TWO YEARS 9309100003 930910 INFLUENCED BY MERCK MEDCO UNION BRISTOLMYERS SETS VENTURE WITH AXION BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISTOLMYERS SQUIBB CO FORMED A JOINT VENTURE WITH A DRUG DISTRIBUTOR IN THE LATEST WAVE OF ALLIANCES EXPECTED TO BE FORMED IN THE WAKE OF MERCK & CO'S MARRIAGE WITH MEDCO CONTAINMENT SERVICES INC BRISTOLMYERS A LEADING PRODUCER OF CANCER DRUGS HAS TEAMED WITH AXION PHARMACEUTICALS INC A SIXYEAROLD PRIVATELY HELD DISTRIBUTOR SPECIALIZING IN SALES TO CANCER TREATMENT CLINICS THE CLINICS ARE LOCATED OUTSIDE OF HOSPITALS WHILE THE JOINT VENTURE'S ANTICIPATED REVENUE ABOUT 100 MILLION A YEAR INITIALLY PALES BESIDE THE DIMENSIONS OF THE MERCKMEDCO MERGER THE DEAL REFLECTS THE PHARMACEUTICAL INDUSTRY'S CONCERNS OVER INCREASED GOVERNMENT REGULATION AIMED AT SPIRALING HEALTH CARE COSTS MEDCO CONTAINMENT A MAILORDER AND MARKETER OF DISCOUNT DRUG PRESCRIPTIONS WITH 1992 SALES OF 22 BILLION IS BEING ACQUIRED BY MERCK THE NATION'S LARGEST PHARMACEUTICAL COMPANY MERCK HAS AGREED TO PAY 6 BILLION IN STOCK AND CASH ANALYSTS NOTE THAT BEFORE COSTCONSCIOUSNESS OVERTOOK THE HEALTHCARE FIELD DRUG MAKERS COULD SAFELY ASSUME THEY COULD SELL THEIR DRUGS AT THEIR PRICES NO ONE EVER USED TO ASK ABOUT THE PRICES SAYS FIRST BOSTON CORP HEALTHCARE ANALYST JOYCE ALBERSSCHONBERG NOW EVERY DRUG MANUFACTURER IS LOOKING TO LINK UP WITH SOME KIND OF DISTRIBUTOR WHO CAN HELP PUSH THE PRODUCT OUT THE DOOR DRIVE THE VOLUME AND GAIN MARKET SHARE THREE YEARS AGO SAN FRANCISCOBASED AXION BEGAN SELLING COMPETITIVELY PRICED CANCERFIGHTING DRUGS AND RELATED SUPPLIES TO ONCOLOGY PRACTICES THOSE NOW NUMBER MORE THAN 2000 ACCORDING TO BRISTOLMYERS BRISTOLMYERS DRUGS REPRESENTED 25 OF AXION'S SALES AS OF SEPT 1 WHEN THE MULTIYEAR JOINTVENTURE TOOK EFFECT AXION DOES NOT RELEASE FINANCIAL DATA PUBLICLY AXION PRIDES ITSELF ON VALUEADDED SERVICES SUCH AS EXTENDED PAYMENT TERMS SIMPLIFIED PROCUREMENT PROCEDURES AND QUICK DELIVERIES ALLOWING FOR BETTER INVENTORY MANAGEMENT WHILE ANALYSTS HAVE DUBBED MEDCO THE WALMART OF PILLS MICHAEL GOLDBERG AXION'S PRESIDENT AND CHIEF EXEUCTIVE OFFICER YESTERDAY LABELED HIS BUSINESS THE NORDSTROM OF INJECTABLES BRISTOLMYERS LINKED UP WITH AXION UPON RECOGNIZING THAT NATIONAL HEALTHCARE REFORM EFFORTS WOULD DRIVE TREATMENT SERVICES OUT OF HIGHERCOSTING HOSPITALS AND INTO DOCTORS' OFFICES AND SELFSTANDING CLINICS SAID DONALD HAYDEN JR VICE PRESIDENT AND GENERAL MANAGER OF THE BRISTOL MYERS ONCOLOGY DIVISION BUT BRISTOLMYERS DIDN'T HAVE THE EXPERTISE TO SERVICE THOUSANDS OF SMALL ACCOUNTS HE SAID UNDER THE JOINT VENTURE AGREEMENT BRISTOLMYERS'S DRUGS WILL BE SOLD AT THE DRUG MAKER'S LOWEST LIST PRICES PREVIOUSLY BRISTOLMYERS CHARGED AXION A HIGHER PRICE ALTHOUGH BRISTOLMYERS WITH 1116 BILLION IN 1992 SALES WOULD NOT DISCLOSE PAST BUSINESS VOLUME WITH AXION MR HAYDEN TERMED IT VERY LITTLE NONETHELESS TO MAKE UP FOR LOST REVENUE BRISTOLMYERS IS COUNTING ON INCREASED VOLUME ANALYSTS SAID BRISTOLMYERS WILL PROVIDE IT CHEAPER IF THE COMPANY CAN ASSURE THEM HIGHER VOLUME FIRST BOSTON'S MS ALBERSSCHONBERG SAID FINANCIAL TERMS OF THE JOINT VENTURE WERE NOT RELEASED ANALYSTS SAID THAT DRUG MAKERS ARE OBSESSED WITH INCREASING VOLUME BECAUSE THE DEBATE OVER SPIRALING HEALTHCARE COSTS IS MAKING IT DIFFICULT TO BOOST EARNINGS WITH HEFTY ANNUAL PRICE INCREASES THEY'RE ALL LOOKING FOR CREATIVE WAYS TO GET AS WIDE A DISTRIBUTION AS POSSIBLE WHETHER IT'S A JOINT VENTURE WITH AN AXION OR A MERGER WITH A MAILORDER MEDCO SAYS JOSEPH RICCARDO AN ANALYST WITH BEAR STEARNS & CO DAVID LIPPMAN AN ANALYST WITH PRUDENTIAL SECURITIES RESEARCH NOTED THAT WHILE BRISTOLMYERS IS THE LEADING MARKETER OF CANCER DRUGS IT HAS IMPORTANT PRODUCTS SOON COMING OUT OF PATENT PROTECTION YOU WANT TO TRY AND GET YOUR DRUGS FEATURED BY A POWERFUL DISTRIBUTION COMPANY HE SAYS BECAUSE SUCH A DISTRIBUTOR KNOWS HOW TO BUNDLE TOGETHER THOSE DRUGS PROTECTED BY PATENTS WITH THOSE THAT ARE NOT 9309100002 930910 EXECUTIVE EDUCATION A SPECIAL REPORT SCHOOL DAYS DO IT YOURSELF WITH MOST OF TODAY'S OFFBEAT BUSINESS BOOKS READERS CAN GET JUST ABOUT THEIR MONEY'S WORTH BY SUZANNE ALEXANDER SO YOU NEED ADVICE ON HOW TO RALLY YOUR TROOPS BUT EXECUTIVEEDUCATION CLASSES ARE JUST TOO EXPENSIVE EMMETT C MURPHY HAS A BOOK FOR YOU THE GENIUS OF SITTING BULL 13 HEROIC STRATEGIES FOR TODAY'S BUSINESS LEADERS COMMUNICATE WITH YOUR BRAVES THE BOOK ADVISES LIVE AND WORK AS THEY DO PERFORM THE SAME TASKS CLAIM NO SPECIAL PRIVILEGES AND EXPLOIT THE WEAKNESSES OF YOUR RIVALS SUCH AS GEORGE ARMSTRONG CUSTER'S PREDICTABLE TACTIC OF ATTACKING JUST BEFORE DAWN AT THE BATTLE OF THE LITTLE BIGHORN SITTING BULL FACED THE ULTIMATE CHALLENGE THE GENOCIDE OF HIS PEOPLE SAYS MR MURPHY YOU CAN'T TAKE THIS GUY LIGHTLY OK SO IT MAY NOT BE IN SEARCH OF EXCELLENCE BUT A RESPECTABLE 35000 COPIES OF SITTING BULL HAVE BEEN SOLD AT 19 EACH WELCOME TO THE NICHE OF THE CHEAP OFFBEAT ALTERNATIVE MANY PEOPLE ARE EAGER TO UPGRADE THEIR SKILLS AND KNOWLEDGE THROUGH BUSINESSEDUCATION COURSES BUT THE COST OF A MASTERS IN BUSINESS ADMINISTRATION KEEPS CLIMBING AND MORE COMPANIES ARE TURNING DOWN THE PRIVILEGE OF PAYING THOUSANDS OF DOLLARS PER MANAGER FOR SHORTTERM SEMINARS ON EXECUTIVE DEVELOPMENT NO WONDER SO MANY BILL GATES WANNABES IN SEARCH OF LOWCOST SHORTCUTS TO GET AHEAD ARE TURNING TO THE PROLIFERATING STACKS OF UNCONVENTIONAL BUSINESSADVICE BOOKS EVERY MONTH DOZENS OF THESE NEW DOITYOURSELF TITLES ARE ARRIVING AT BOOKSTORES AND RETAILERS SAY THEY COMMAND FAR MORE SHELF SPACE THAN THEY DID JUST A FEW YEARS AGO CRITICS SAY THAT MOST OF THE BOOKS ARE A MONUMENTAL WASTE OF TIME AS WELL AS MONUMENTALLY BORING BUT PEOPLE KEEP ON BUYING AND WRITERS KEEP ON WRITING CONSIDER SOME RECENT TITLES THERE'S SHAKESPEARE ON MANAGEMENT FOR INSTANCE LINCOLN ON LEADERSHIP AND VICTORY SECRETS OF ATTILA THE HUN FOR MARKETING PROBLEMS YOU MIGHT TRY SAMURAI SELLING THE ANCIENT ART OF SERVICE IN SALES YOU SAY YOUR MANAGERS ARE ACTING ABUSIVE PERHAPS YOU CAN CALM THEM WITH SMALL DECENCIES REFLECTIONS AND MEDITATIONS ON BEING HUMAN AT WORK OR MAYBE YOUR PERSUASIVE POWERS NEED POLISHING THE GODDESS IN THE OFFICE REVEALS WITCHCRAFT SPELLS THAT PROMISE TO PROPEL YOU TO SUCCESS IF YOU DON'T HAVE TIME TO READ DON'T DESPAIR THERE IS AN ABUNDANCE OF AUDIO TAPES AVAILABLE TO LISTEN TO AS YOU RIDE TO WORK YOU CAN START WITH HOW TO SELL ANYTHING TO ANYBODY A CASSETTE OFFERING ADVICE FROM A SELFDESCRIBED FORMER THIEF WHO WAS EXPELLED FROM HIGH SCHOOL AND FIRED FROM 40 JOBS BEFORE HE FOUND HIS CALLING AS A SALESMAN A TAPE ENTITLED THE TEN COMMANDMENTS OF BUSINESS & HOW TO BREAK THEM SUGGESTS TREATING EMPLOYEES LIKE ROYALTY TO MAXIMIZE PROFITS THE SILVA METHOD UNLOCKING THE GENIUS WITHIN TEACHES WAYS TO TAP THE UNDERUTILIZED RIGHT SIDE OF THE HUMAN BRAIN FOR BETTER DECISIONMAKING SKILLS PEOPLE WHO RELY ON SUCH OFFBEAT APPROACHES TO SALVAGE A BUSINESS OR GET PROMOTED PROBABLY SHOULD HAVE BOTH SIDES OF THEIR BRAIN EXAMINED SAYS EDWARD LAWLER A MANAGEMENT PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA TIMES OF CRISES OFTEN PRODUCE DESPERATE SOLUTIONS HE SAYS ARE THESE BOOKS LIKELY TO PROVIDE USEFUL TIPS THAT LEAD TO SUCCESS PROBABLY NOT EVEN SOME PUBLISHERS AND EDITORS ARE PUZZLED BY THE BOOKS' APPEAL I DON'T FIND THE BOOKS ALL THAT USEFUL SAYS JANET COLEMAN BUSINESS BOOK EDITOR AT CURRENCY A DIVISION OF BANTAM DOUBLEDAY DELL I ALWAYS THINK OF THEM AS A CUTE GIFT BUT HOW MANY CUTE GIFTS CAN PEOPLE BUY SUCH DOUBTS DON'T SEEM TO DETER PUBLISHERS FROM CLAIMING A PIECE OF THE ACTION HOWEVER BANTAM DOUBLEDAY FOR EXAMPLE TOUTS THE POWER OF FOLLOWERSHIP A BOOK THAT DESCRIBES THE IMPORTANT ORGANIZATIONAL ROLE OF FOLLOWERS AND MANAGING BY STORYING AROUND WHICH TEACHES HOW TO BECOME A BETTER MANAGER THROUGH STORYTELLING TO BE SURE NOT EVERY SELFHELP BUSINESS BOOK IS OFFBEAT JAY CONGER A PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT HARVARD BUSINESS SCHOOL SAYS MANY SELFHELP BOOKS OFFER GOOD CORE IDEAS JOHN WILEY & SONS INC IN NEW YORK PUBLISHES THE PORTABLE MBA SERIES OF BOOKS ABOUT ACCOUNTING FINANCE MARKETING AND MANAGEMENT EACH CHAPTER OFFERS ADVICE FROM FACULTY MEMBERS AT UNIVERSITIES SUCH AS COLUMBIA HARVARD AND STANFORD THE INTENT IS TO PROVIDE READERS WITH INSTANT MBA LITERACY WITHOUT MBA COST BUT SOME READERS ARE UNIMPRESSED BY CORNY ANALOGIES IN ONE CHAPTER ON POLITICS AND INFLUENCE IN THE PORTABLE MBA IN MANAGEMENT FOR EXAMPLE THE CONCEPT OF THE POWER ONION IS INTRODUCED ALONG WITH INSTRUCTIONS ON HOW TO PEEL THE LAYERS OF POWER IN AN ORGANIZATION PROPERLY SO AS TO AVOID CRYING ANALYZING ORGANIZATIONAL PROBLEMS IS LIKE PEELING AN ONION THE TEXT SAYS THERE ARE ALWAYS MANY MORE LAYERS THAN YOU WOULD SUSPECT THE MORE YOU PEEL THE CLOSER YOU GET TO THE HEART OF THE MATTER BUT ALL OF THE LAYERS MAKE UP THE ONION LATER THE 25 BOOK INTRODUCES THE TEN COMMANDMENTS OF MANAGING CHANGE THE FIRST RULE ANALYZE THE ORGANIZATION AND ITS NEED FOR CHANGE KARL WEBER ASSOCIATE PUBLISHER OF JOHN WILEY & SONS DECLINES TO COMMENT SPECIFICALLY ON THE POWER ONION OR OTHER PARTS OF THE TEXT BUT HE SAYS THE SERIES IS VERY SERIOUS AND VALUABLE I THINK THE CONTRIBUTORS WOULDN'T HAVE BEEN ASSOCIATED WITH IT IF IT WASN'T A TOPNOTCH PRODUCT MR WEBER DECLINES TO REVEAL SALES OF THE ENTIRE SERIES WHICH WAS INTRODUCED IN 1990 AND CONTINUES TO BE PUBLISHED BUT HE SAYS THE FIRST BOOK IN THE SERIES ALONE SOLD MORE THAN 200000 COPIES INDEED JOHN WILEY & SONS IS SO CONFIDENT IN THE CONCEPT THAT IT RECENTLY LAUNCHED A QUARTERLY PORTABLE MBA NEWSLETTER THAT FOR 40 A YEAR WILL DETAIL EMERGING TRENDS IN BUSINESS SO FAR ABOUT 2500 PEOPLE HAVE SUBSCRIBED THE TREND IN OFFBEAT BUSINESS BOOKS BEGAN FOUR YEARS AGO WITH THE PUBLISHING OF THE POPULAR LEADERSHIP SECRETS OF ATTILA THE HUN WARNER BOOKS NEW YORK THE TIME WARNER INC DIVISION THAT PUBLISHED ATTILA WON'T DISCLOSE SALES BUT SAYS IT PRINTED A ROBUST 640000 COPIES SINCE THEN PUBLISHERS ESTIMATE THAT 1000 SELFHELP BUSINESS VOLUMES HAVE BEEN MARKETED MANY DESERVING THE OFFBEAT LABEL NO ONE KEEPS TRACK OF TOTAL SALES BUT RETAILERS ARE CLEARLY ATTRACTED TO GOODS THAT MOVE FOUR YEARS AGO I WAS ORDERING 50 LESS OF THIS CATEGORY SAYS THOMAS FALVEY BUSINESSBOOK BUYER FOR BORDERS INC A 50STORE CHAIN BASED IN ANN ARBOR MICH IT'S A REAL AREA OF INTEREST FOR PEOPLE BECAUSE IT COSTS ONLY 995 OR 1995 FOR A BOOK THAT COULD BRING TANGIBLE RESULTS IN YOUR WORK LIFE WHAT'S BEHIND THE SURGE IN SALES TOM POWER SENIOR EDITOR AT PRENTICE HALL/SIMON & SCHUSTER A NEW YORK UNIT OF PARAMOUNT COMMUNICATIONS SAYS PEOPLE ARE WILLING TO TURN TO BOOKS THAT OFFER NOVEL APPROACHES BECAUSE JOB PRESSURES AND THE UNCERTAIN ECONOMY HAVE MADE THEM FEARFUL AND CONFUSED HE SAYS THEY WANT TO KNOW HOW DO I FIT IN WHAT'S GOING TO HAPPEN NEXT HOW DO I MAKE MYSELF MORE VALUABLE TO THE CORPORATION BUT CONFUSION AND FEAR AREN'T THE ONLY MOTIVATORS AVERSION TO TEXTBOOKS IS ANOTHER DEBRA ENGLANDER EDITOR OF THE FORTUNE BOOK CLUB IN NEW YORK A DIVISION OF TIME WARNER SAYS PUBLISHERS FAVOR BOOKS THAT HELP PROFESSIONAL DEVELOPMENT WHILE OFFERING SOME PLEASURE TO SPARETIME READERS WHAT'S MORE MS ENGLANDER SAYS OFFBEAT BOOKS ATTRACT WIDER AUDIENCES TOM PETERS IS A VERY WELLKNOWN NAME BUT NOT EVERYONE ELSE IS IF YOU DON'T HAVE A WELLKNOWN AUTHOR A CATCHY TITLE AND CONCEPT WILL HELP SELL THE BOOK QUOTES DONALD E MARTIN A PROFESSED SPORTS JUNKIE SAYS HE WROTE TEAMTHINK USING THE SPORTS CONNECTION TO DEVELOP MOTIVATE AND MANAGE A WINNING BUSINESS TEAM BECAUSE HE'S CONVINCED THAT PEOPLE WON'T SPEND TIME GOING THROUGH HUGE THEORY BOOKS ANYMORE HE RECALLS HOW HE LEARNED ABOUT LEADING MOTIVATING AND MANAGING WHILE GROWING UP WATCHING SPORTS I DIDN'T HAVE AN MBA BUT I DID HAVE THE NBA THE NFL AND THE NHL HE SAYS MR MARTIN CHIEF EXECUTIVE OF CALSURANCE COS AN INSURANCE BROKER IN ORANGE CALIF SPENT THREE YEARS WRITING HIS MANAGEMENT BOOK FOR RESEARCH HE READ HUNDREDS OF NEWS ARTICLES AND BOOKS ON SPORTS AND WROTE DOWN QUOTES FROM TELEVISION INTERVIEWS THE BOOK IS A COMPILATION OF SHORT STORIES ABOUT COACHES AND PLAYERS SUCH AS JOLLY CHOLLY GRIMM MANAGER OF THE MINOR LEAGUE MILWAUKEE BREWERS IN THE 1940S ON HIS BIRTHDAY MR GRIMM WAS TOASTED ON THE PITCHER'S MOUND BEFORE A GAME BY THE TEAM'S OWNER AS A CAKE WAS WHEELED ONTO THE FIELD THE MORAL MR MARTIN CONCLUDES IS THAT EMPLOYEES LIKE TO BE REMEMBERED AND BIRTHDAYS ARE A PRIME DAY TO DO IT PREPARING TO PLAY MEANS LEARNING WHAT TO DO EDWARD DE BONO AUTHOR OF THE SIX ACTION SHOES TRIES TO HELP WORKERS KNOW WHAT TO DO IN EVERY PREDICAMENT HIS ADVICE EMPLOYEES MUST THINK OF IMAGINARY SHOES TO WEAR IN EACH SITUATION AND ACT ACCORDINGLY WHEN THE OCCASION CALLS FOR LEADERSHIP AND COMMAND FOR EXAMPLE IMAGINE PUTTING ON PURPLE RIDING BOOTS PURPLE SIGNIFIES POWER THE BOOK SAYS WHILE RIDING BOOTS SUGGEST SOMEONE RIDING A HORSE OR AT LEAST A MOTORCYCLE THE SUGGESTION IS OF AUTHORITY WEARING THE PURPLE BOOTS WORKERS SHOULD FIND IT EASIER TO FOCUS ON THE DUTIES AT HAND MR DE BONO SAYS DURING EMERGENCIES PRETEND TO PUT ON ORANGE RUBBER BOOTS ORANGE SUGGESTS DANGER AND EXPLOSIONS WHILE RUBBER BOOTS TRIGGER VISIONS OF FIRE FIGHTERS AND RESCUE WORKERS THE TEXT SAYS THE BOOK IS DESIGNED TO GIVE YOU A REFERENCE WHEN PLANNING ACTION SAYS MR DE BONO A LONDONBASED MANAGEMENT CONSULTANT WHO WROTE THE BOOK ON A 1991 FLIGHT FROM LONDON TO AUCKLAND NEW ZEALAND THE IDEA IS TO DIVIDE ACTION INTO SIX BASIC SHOE STYLES MANAGERS CAN THEN INDICATE WHAT STYLE IS APPROPRIATE FOR ANY SITUATION SALES OF THE SIX ACTION SHOES HAVE BEEN PATCHY CONCEDES MR DE BONO WHO ALSO WROTE SIX THINKING HATS ABOUT DIFFERENT COLORS OF HATS THAT PEOPLE SHOULD IMAGINE WEARING HIS PUBLISHER HARPERBUSINESS NEW YORK A DIVISION OF HARPERCOLLINS PUBLISHERS INC DECLINES TO REVEAL THE NUMBERS WHILE DEMAND IS HIGH FOR NONTRADITIONAL BUSINESS BOOKS PUBLISHERS STILL AREN'T JUMPING AT EVERY PROPOSAL JAY SHAFRITZ SAYS HE WAS REJECTED 24 TIMES BEFORE THE PUBLISHING UNIT OF NEW YORKBASED CAROL COMMUNICATIONS INC AGREED LAST YEAR TO PRINT SHAKESPEARE ON MANAGEMENT WISE COUNSEL AND WARNINGS FROM THE BARD MR SHAFRITZ A PROFESSOR OF GOVERNMENT AT THE UNIVERSITY OF PITTSBURGH SAYS HE APPROACHED VIRTUALLY EVERYONE AND GOT SOME OF THE NICEST REJECTION LETTERS EVER HE PERSISTED HE SAYS BECAUSE HIS BOOK OFFERS VALUABLE LESSONS IN MANAGEMENT THAT HAVE BEEN IGNORED FOR CENTURIES IN HAMLET FOR EXAMPLE HE FINDS A CASE STUDY OF A TOOSENSITIVE YOUNG EXECUTIVE WHO FAILS BECAUSE OF INDECISIVENESS ACCORDING TO MR SHAFRITZ JULIUS CAESAR REPRESENTS A TALE OF A PARTICULARLY HOSTILE TAKEOVER BY DISGRUNTLED STOCKHOLDERS AND THE PLOT OF KING LEAR SERVES AS A WARNING TO FAMILY BUSINESS OWNERS OF THE PERILS OF DIVESTITURE AND EARLY RETIREMENT THE TEXT SAYS THE BOOK ENCLOSED IN A COVER FEATURING A MAN DRESSED IN 16TH CENTURY GARB WHO IS TALKING ON THE TELEPHONE WHILE SITTING IN A MODERN EXECUTIVE'S CHAIR HAS SOLD FEWER THAN 5000 COPIES MR SHAFRITZ BLAMES THE MEAGER RESULTS ON HIS PUBLISHER FOR NOT KNOWING HOW TO MARKET THIS KIND OF THING ALTHOUGH HIS EDITOR BRUCE SHOSTAK CONSIDERS THE BOOK TO BE A LIGHTHEARTED LOOK AT BUSINESS MR SHAFRITZ EXPLAINS THAT THE BOOK ISN'T SUPPOSED TO BE FUNNY THIS IS NOT A PARODY HE SAYS NOTHING IS MADE UP ANYONE WHO HAS TAKEN AN INTRODUCTORY MANAGEMENT COURSE WOULD KNOW IMMEDIATELY THAT IT'S ABSOLUTELY SERIOUS MS ALEXANDER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BOSTON BUREAU 9309100001 930910 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY PROVIDING FOR FAMILY THROUGH THE AGES BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL FIRST THERE'S THE STUFF YOU HAVE TO DO THEN THERE'S THE STUFF YOU SHOULD DO AND WHEN YOU ARE STARTING OUT THE STUFF YOU SHOULD DO USUALLY TAKES A BACK SEAT NEWLYWEDS WHO ARE STRUGGLING WITH BALANCING THEIR NEW JOINT CHECKING ACCOUNT FOR EXAMPLE PROBABLY AREN'T GOING TO BE THINKING ABOUT WRITING WILLS SETTING UP INVESTMENT PLANS OR BUYING LIFE INSURANCE BUT WHEN CHILDREN ARRIVE THINGS CHANGE IN TODAY'S TWOINCOME FAMILIES EITHER ONE PARENT HAS TO STAY HOME TO TAKE CARE OF THE KIDS OR CHILD CARE IS NEEDED THE FINANCIAL BURDENS OF THE FAMILY START TO GO WAY UP EITHER BECAUSE THE INCOME OF THE FAMILY HAS GONE WAY DOWN OR THE EXPENSES HAVE GONE WAY UP SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER THEN COMES THE REALIZATION OF WHAT A CHILD REALLY COSTS IT'S NOT JUST THE NECESSITIES BUT ALSO THE THINGS YOU WANT FOR YOUR CHILD SUCH AS PIANO LESSONS AND SUMMER CAMP AND COLLEGE LOOMS LARGE AS THE BLACK HOLE OF FAMILY FINANCES THE FINANCIAL REALITY OF ALL THIS RESPONSIBILITY HITS EVERYONE SAYS KAREN SPERO A CLEVELAND FINANCIAL PLANNER IF YOU HAVEN'T DONE SO YET NOW IS THE TIME TO MAKE SURE YOU HAVE AN ADEQUATE RESERVE FUND THAT COVERS TWO TO SIX MONTHS OF LIVING EXPENSES IT ISN'T UNTHINKABLE THAT SOMEONE COULD LOSE THEIR JOB SAYS KEMP FAIN A KNOXVILLE TENN FINANCIAL PLANNER NOW WITH TWO FAMILY INCOMES BEING REQUIRED TO AFFORD A FAMILY HOME IT IS VERY IMPORTANT TO SET UP A RESERVE FUND MONEY MAY BE TIGHT BUT ADVISERS SAY YOU SHOULD PUT SOMETHING AWAY REGULARLY BECAUSE FAMILY EXPENSES TEND TO INCREASE AS THE CHILDREN GROW THE SOONER YOU START SAVING FOR SUCH THINGS AS COLLEGE THE EASIER THE TASK IS IT ALSO MAKES SENSE TO MAKE SOME INVESTMENTS IN YOUR KIDS' NAMES THAT'S BECAUSE CHILDREN WHO ARE TAXED AT THE PARENTS' RATE UNTIL THEY TURN 14 GET A TAX BREAK ON THE FIRST 1200 OF UNEARNED INCOME WHICH IS ROUGHLY EQUIVALENT TO A 17000 INVESTMENT EARNING 7 A YEAR UNCLE SAM COLLECTS NOTHING ON THE FIRST 600 AND ONLY 90 ON THE SECOND 600 AFTER THAT ADVISERS GENERALLY AGREE THERE'S LITTLE POINT TO PUTTING MONEY IN A CHILD'S NAME IF YOU GIVE IT TO THE CHILD YOU LOSE CONTROL SAYS DENNIS GURTZ A WASHINGTON FINANCIAL PLANNER NOTING THAT MONEY EARMARKED FOR COLLEGE COULD GET SPENT ON A CAR OR A TRIP TO EUROPE INDEED IT'S IMPORTANT TO REMEMBER THAT KIDS AREN'T BORN WITH MONEY MANAGEMENT SKILLS THEY NEED TO BE TAUGHT HOW TO HANDLE MONEY USE CREDIT AND MAKE INVESTMENTS THIS CAN START WITH SOMETHING SIMPLE SUCH AS AN ALLOWANCE IN THEIR ELEMENTARY SCHOOL YEARS AND EXPAND TO INCLUDE BANK ACCOUNTS CREDIT CARDS AND INVESTMENTS SOME PARENTS EVEN START FAMILY INVESTMENT CLUBS WHERE A SET AMOUNT IS INVESTED EACH MONTH AND CHILDREN HELP RESEARCH INVESTMENT OPTIONS AND DECIDE WHERE THE MONTHLY INVESTMENT WILL GO THE PIGGY BANK NEEDS TO GROW UP SAYS MR KOCHIS HE ENCOURAGES PARENTS AND GRANDPARENTS TO BUY CHILDREN SHARES IN MUTUAL FUNDS OTHER CONCERNS AT THIS STAGE SHOULD INCLUDE HAVING A WILL SAYS MICHAEL FAY SENIOR PARTNER AT HALE & DORR BOSTON THE MOST FREQUENT OBSTACLE HE SAYS IS NOT KNOWING WHOM TO CHOOSE AS A GUARDIAN FOR THE CHILDREN BUT RATHER THAN SUCCUMB TO ESTATE PLANNING PARALYSIS AND END UP WITH NO WILL AT ALL PARENTS SHOULD MAKE A CHOICE KNOWING THEY CAN CHANGE THEIR WILL LATER HAND IN HAND WITH THE WILL GOES LIFE INSURANCE YOU'VE GOT TO HAVE IT IF YOU'VE GOT CHILDREN AND THIS ISN'T A PLACE TO SKIMP DON'T FORGET TO INSURE A NONWORKING SPOUSE SAYS ROBERT E WILLARD A COLORADO SPRINGS COLO FINANCIAL PLANNER BY THE TIME YOU REACH YOUR 40S AND 50S YOU'VE ALREADY LEARNED THAT CHILDREN ARE EXPENSIVE BUT HANG ON BECAUSE THEY ARE GOING TO GET MORE EXPENSIVE AND SOON YOU MAY ALSO BE FINDING OUT HOW MUCH YOUR AGING PARENTS CAN COST THIS IS THE PERIOD OF GREATEST COMPROMISE SAYS SAN FRANCISCO FINANCIAL PLANNER TIM KOCHIS NOTING THAT PEOPLE OFTEN FIND THEMSELVES IN A THREEWAY TUG OF WAR BETWEEN THE NEEDS OF THEIR KIDS THEIR PARENTS AND THEMSELVES HERE IS WHEN YOU HAVE THE MAXIMUM NUMBER OF OBJECTIVES AT THE SAME TIME AND MANY OF THEM HAVE VERY BIG PRICE TAGS ON THEM FOR MANY THE BIGGEST CRUNCH WILL BE THE CHILDREN'S COLLEGE TUITION BILL MOST PEOPLE HAVEN'T SAVED ENOUGH TO COVER THE EXPENSE WHICH CAN RUN 30000 A YEAR OR MORE MOST PEOPLE HAVE NEVER WRITTEN A CHECK FOR AN EXPENSE THIS LARGE IN THEIR WHOLE LIFE SAYS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER IF YOU HAVEN'T SAVED ENOUGH EITHER REFINANCING YOUR HOME OR TAKING A HOMEEQUITY LOAN MAY BE THE CHEAPEST SOURCE OF TUITION MONEY SINCE RATES ARE FAIRLY LOW AND INTEREST ON THESE LOANS IS USUALLY DEDUCTIBLE ON YOUR INCOME TAX ONE COMMON APPROACH IS FOR PARENTS TO USE THEIR HOME EQUITY FOR A PORTION OF THE TUITION WITH THE STUDENT TAKING OUT A SEPARATE LOAN TO COVER THE REST IT IS A GOOD WAY FOR YOUR KIDS TO LEARN ABOUT THE VALUE OF MONEY EARLY SAYS VIRGINIA APPLEGARTH A BOSTON FINANCIAL ADVISER AGING PARENTS MAY ALSO BE GETTING COSTLY BUT ADVISERS AGREE THERE IS LITTLE THAT CHILDREN CAN DO TO PREPARE FOR THIS EXPENSE KEMP FAIN A KNOXVILLE TENN FINANCIAL PLANNER SAYS HE TELLS MOST CLIENTS TO SIMPLY STAND READY TO HELP IF IT IS REQUIRED IF YOU WANT TO DO SOMETHING OVERT HE SAYS PERHAPS THE ONLY ALTERNATIVE IS TO BUY THEM A LONGTERM CARE POLICY BUT NONE OF HIS CLIENTS HAS ACTUALLY TAKEN THAT STEP SINCE THE POLICIES ARE EXPENSIVE AND MAY NEVER BE NEEDED CAUGHT BETWEEN THE TWO GENERATIONS 40 AND 50YEAROLDS CAN'T AFFORD TO BE TOO SELFLESS THESE ARE THE YEARS WHEN PEOPLE SHOULD BE ACCUMULATING MOST OF THEIR RETIREMENT SAVINGS YOU REALLY HAVE TO HIT ON ALL CYLINDERS TO GET YOUR RETIREMENT FUNDED SAYS MR FAIN ONE AREA THAT IS OFTEN OVERLOOKED AT THIS STAGE OF LIFE IS ESTATE PLANNING I WOULD ARGUE THAT BY THE TIME YOU GET INTO YOUR 50S ESTATE PLANNING IS IMPORTANT AND IT SHOULD BE FAIRLY ELABORATE SAYS MR FAIN THAT'S BECAUSE MANY PEOPLE IN THIS AGE GROUP NOW HAVE ESTATES THAT WILL BE TAXED BY UNCLE SAM WHEN THEY DIE ALTHOUGH THE ENTIRE ESTATE CAN PASS TAXFREE TO THE SURVIVING SPOUSE WHEN HE OR SHE DIES FEDERAL ESTATE TAXES WILL TAKE 37 TO 55 OF ANYTHING OVER 600000 INCLUDING LIFE INSURANCE DEATH BENEFITS THAT MAKES IT IMPORTANT TO TAKE STEPS OFTEN RELATIVELY SIMPLE ONES TO TRY TO REDUCE THE TAX BITE TYPICALLY THOSE STEPS INCLUDE SHIFTING ASSETS OUT OF JOINT OWNERSHIP CREATION OF RECIPROCAL BYPASS TRUSTS AND POSSIBLY CREATION OF A LIFE INSURANCE TRUST SAYS ALEXANDER A BOVE JR A BOSTON ATTORNEY THIS IS A BASIC STRAIGHTFORWARD PLAN HE SAYS THAT ALLOWS YOU AND YOUR SPOUSE TO BOTH TAKE ADVANTAGE OF THE 600000 FEDERAL ESTATE TAX EXEMPTION BY TAKING ASSETS OUT OF JOINT OWNERSHIP AND PUTTING AS MUCH AS 600000 OF THEM INTO A REVOCABLE TRUST FOR THE BENEFIT OF YOUR SURVIVING SPOUSE AND CHILDREN YOU IN EFFECT BYPASS YOUR SPOUSE'S ESTATE CREATING A TRUST FOR YOUR LIFE INSURANCE KEEPS THE DEATH BENEFIT OUT OF YOUR ESTATE ALTOGETHER BUT TRUSTS ARE COMPLICATED SO BE SURE TO GET KNOWLEDGEABLE PROFESSIONAL HELP THERE ARE LOTS OF WAYS TO GET TRIPPED UP MR BOVE SAYS NOTING THIS IS NOT THE PLACE FOR DOITYOURSELFERS THERE'S A LIGHT AT THE END OF THE TUNNEL THE KIDS ARE ON THEIR OWN THE MORTGAGE IS PAID OFF AND THERE'S MONEY IN THE BANK BUT YOU'RE NOT OFF THE HOOK YET JUST AT THE TIME WHEN YOU FEEL YOU HAVE KIND OF GOT YOURSELF IN A GOOD PLACE ONE OF YOUR KIDS WILL TELL YOU THEY ARE GETTING MARRIED SAYS KAREN SPERO A FINANCIAL PLANNER IN CLEVELAND OR THEY ARE GETTING DIVORCED AND COMING BACK TO LIVE WITH YOU OR THEY NEED HELP WITH THE HOME DOWN PAYMENT OR THE GRANDCHILDREN NEED BRACES EVEN WHEN CHILDREN DON'T ASK THERE ARE THINGS YOU WANT TO BE ABLE TO DO TO MAKE THEIR LIVES EASIER ADVISERS SAY IT'S GREAT TO HELP WHEN YOU CAN BUT THEY SAY YOU WON'T DO ANYONE ANY FAVORS BY BEING TOO GENEROUS THE BEST THING YOU CAN DO FOR YOUR KIDS IS TO ARRANGE YOUR FINANCES SO THAT YOU ARE NOT NOW AND DO NOT BECOME A BURDEN TO YOUR KIDS SAYS BOSTON ATTORNEY MICHAEL FAY IF YOU DO THAT YOU HAVE ACCOMPLISHED A GREAT DEAL YOU CAN ALSO MAKE YOUR KIDS' LIVES A LOT EASIER BY TALKING WITH THEM ABOUT THE WHAT IFS AND PLANNING FOR WHAT COULD HAPPEN THAT'S NOT TO SAY YOU SHOULD HAND YOUR FINANCES OVER TO THE KIDS RATHER YOU SIMPLY NEED TO MAKE SURE THE DOCUMENTS ARE DRAWN UP AND THAT THE CHILDREN KNOW BOTH WHERE TO FIND THEM AND WHAT TO DO AMONG THE NECESSARY DOCUMENTS IS A DURABLE POWER OF ATTORNEY DRAFTED WITH THE HELP OF A GOOD LAWYER THIS DOCUMENT WOULD ALLOW THE CHILD TO DO SUCH THINGS AS SIGN TAX RETURNS AND MAKE FINANCIAL DECISIONS FOR A PARENT IF HE OR SHE SHOULD BECOME INCOMPETENT EQUALLY IMPORTANT IS A HEALTHCARE PROXY WHICH DELEGATES THE RIGHT TO MAKE HEALTHCARE DECISIONS RULES VARY FROM STATE TO STATE BUT OFTEN A LIVING WILL IS INCORPORATED INTO THE DOCUMENT OUTLINING SPECIFICALLY WHAT MEASURES WOULD BE ACCEPTABLE TO PROLONG LIFE THE THIRD ITEM IS A LIST OF ASSETS AND WHERE THEY CAN BE FOUND YOU DON'T HAVE TO HAND YOUR KIDS THE LIST NOW BUT KEEP IN MIND THAT WITHOUT SOME GUIDANCE THEY MAY BE FINDING STOCK CERTIFICATES IN THE ATTIC YEARS AFTER YOUR DEATH EVEN IF MOST OF YOUR ASSETS ARE ALREADY IN A TRUST A WILL IS IMPORTANT A WILL SPECIFIES YOUR WISHES AFTER DEATH IT NAMES YOUR EXECUTOR AND DIVIDES ANY ASSETS THAT REMAIN IN YOUR ESTATE IF YOU HAVE LOTS OF ASSETS OR SPECIAL CONCERNS YOUR USE OF TRUSTS MAY EXPAND YOU MAY FOR EXAMPLE WANT TO ESTABLISH A MARITAL TRUST TO HANDLE THE PART OF YOUR ESTATE THAT WILL PASS DIRECTLY TO YOUR SPOUSE A SIMILAR ARRANGEMENT STRUCTURED AS A LIVING TRUST MAY EVEN MAKE SENSE BEFORE YOU DIE IF YOU OR YOUR SPOUSE IS INFIRM IT IS MORE THAN JUST MONEY SAYS ROBERT E WILLARD A COLORADO SPRINGS COLO FINANCIAL PLANNER WHO ADMINISTERS SUCH TRUSTS FOR HIS PARENTS WHERE ARE THEY GOING TO LIVE WHO IS GOING TO PAY THE BILLS HOW MUCH CONTROL ARE THEY GOING TO HAVE RECENTLY TRUSTS HAVE BEEN USED TO SHELTER ASSETS SO THAT PEOPLE CAN QUALIFY FOR MEDICAID WHEN THEY NEED NURSING HOME CARE BUT THE LAW HAS JUST CHANGED SAYS ALEXANDER A BOVE JR A BOSTON ATTORNEY WHO SPECIALIZES IN MEDICAID LAW MOST OF US FEEL THEY WILL BE VIRTUALLY USELESS IN THE FUTURE ONCE YOU HAVE YOUR AFFAIRS IN ORDER YOU MAY FIND YOU CAN AFFORD THE PLEASURE OF SEEING YOUR HEIRS USE SOME OF YOUR ASSETS WHILE YOU'RE ALIVE UNCLE SAM LETS YOU GIVE AS MUCH TO 10000 A YEAR TO EACH OF AN UNLIMITED NUMBER OF PEOPLE WITHOUT TRIGGERING A GIFT TAX IF YOU ARE MARRIED YOU AND YOUR SPOUSE CAN EACH GIVE 10000 TO EACH RECIPIENT BUT YOU'RE NOT LIMITED TO THAT MR FAY SAYS YOU CAN ALSO MAKE GIFTS OF UNLIMITED AMOUNTS TO PAY TUITION BILLS AND MEDICAL BILLS AS LONG AS THE CHECK IS MADE PAYABLE DIRECTLY TO THE SCHOOL OR THE MEDICAL PROVIDER SEE RELATED ARTICLES PERSONAL FINANCES REVOLVE AROUND THE FAMILY AND THAT LITTLE BUNDLE OF JOY WILL COST YOU A BUNDLE WSJ SEPT 10 1993 9309100134 930816 LEISURE & ARTS BOOKSHELF A REVISIONIST'S LOOK AT WORLD WAR II BY PAUL JOHNSON JOHN CHARMLEY AUTHOR OF CHURCHILL THE END OF GLORY HARCOURT BRACE 742 PAGES 3495 MAY NOT BE A GREAT HISTORIAN BUT HE IS CERTAINLY A LUCKY FELLOW FOLLOWING THE COMPLETION OF MARTIN GILBERT'S MONUMENTAL OFFICIAL BIOGRAPHY OF WINSTON CHURCHILL IT WAS INEVITABLE THAT SOMEONE SHOULD HAVE A SHOT AT DEBUNKING THE OLD HERO IN FACT IT HAS BEEN TRIED BEFORE BUT WITHOUT ATTRACTING MUCH ATTENTION MR CHARMLEY WAS FORTUNATE IN THAT THE LONDON TIMES CHOSE TO MARK THE OCCASION OF HIS BOOK'S PUBLICATION THERE LAST YEAR BY RUNNING A PROVOCATIVE ARTICLE BY ALAN CLARK WHICH ARGUED THAT CHURCHILL HAD LOST THE BRITISH EMPIRE BY HIS FAILURE TO MAKE PEACE WITH HITLER IN 1941 FEW HAD HEARD OF MR CHARMLEY BUT MR CLARK SON OF LORD KENNETH CIVILIZATION CLARK IS A WELLKNOWN EVEN NOTORIOUS FIGURE AN OUTSPOKEN ADMIRER OF MARGARET THATCHER HE IS A MINISTER OFTEN IN SCRAPES AS WHEN HE REFERRED TO BLACK AFRICAN STATES AS BONGOBONGO LAND MR CLARK IS A MILITARY HISTORIAN OF SORTS AND HIS RECKLESS ADOPTION OF EXTREME POSITIONS IS NOT WHOLLY UNATTRACTIVE HIS TIMES ARTICLE HOWEVER WENT TOO FAR FOR MOST PEOPLE'S TASTES AND HISTORIANS AND POLITICIANS WHO REMEMBERED WHAT HAD HAPPENED IN 19401941 TOOK IT UPON THEMSELVES TO REFUTE HIS CLAIM THAT A DEAL WITH HITLER WOULD HAVE BEEN TO BRITAIN'S ADVANTAGE IN THE SUBSEQUENT UPROAR MR CHARMLEY AN OXFORD GRADUATE WHO IS NOW A LECTURER AT THE UNIVERSITY OF EAST ANGLIA SUDDENLY FOUND HIMSELF CELEBRATED AND HIS BIOGRAPHY IN GREAT DEMAND THE EPISODE PROVIDED COMFORT TO THOSE WHO STILL BELIEVE THAT REVIEWS CAN SELL BOOKS HOWEVER IT SHOULD BE POINTED OUT THAT MR CLARK'S THESIS GOES RATHER FURTHER THAN MR CHARMLEY'S THOSE TURNING TO CHURCHILL THE END OF GLORY IN HOPE OF FINDING A DEVASTATING NEW CASE FOR PEACEMAKING WITH HITLER WILL BE DISAPPOINTED IN THE FIRST PLACE MR CHARMLEY'S ANTIHERO DOES NOT GET THE TOP JOB IN 1940 UNTIL PAGE 407 THE QUESTION OF WHETHER BRITAIN SHOULD HAVE NEGOTIATED WITH HITLER OR NOT CROPS UP ONLY IN THE NEXT 44 PAGES AFTER WHICH RUSSIA ENTERS THE WAR AND IT BECOMES MORE WINNABLE SO FAR AS I CAN SEE MR CHARMLEY HAS NOT TURNED UP MUCH NEW ARCHIVAL EVIDENCE THOUGH HE USEFULLY TIES TOGETHER A LOT OF PUBLISHED PRIMARY AND SECONDARY MATERIAL THIS IS CERTAINLY A BOOK WORTH READING BUT ALL HIS CRITICISMS OF CHURCHILL BOTH AS A PERSON AND STRATEGIST HAVE BEEN MADE BEFORE MOST OF THEM MANY TIMES MR CHARMLEY IS MISTAKEN I THINK IN BELIEVING THERE ARE ANY MYTHS ABOUT CHURCHILL OR THAT HE IS AN ICON WHO HAS BEEN UNTHINKINGLY WORSHIPPED AS A BOY AGED 11 I RECALL ELDERLY WISEACRES SHAKING THEIR HEADS EVEN AS CHURCHILL THRILLED US WITH HIS RADIO SPEECHES ADVENTURER WARMONGER HOTHEADED VAIN AND BIG MOUTH WERE TERMS WHICH CLUNG TO HIM ALL HIS LIFE MR CHARMLEY'S CHARGES ARE REALLY TWOFOLD FIRST HE CHALLENGES CHURCHILL'S CONTENTION WHICH LED CHURCHILL TO DISCOUNT ANY POSSIBILITY OF A COMPROMISE WITH HITLER THAT WARS ARE WON BY SUPERIOR WILLPOWER RATHER THAN BY SUPERIOR FIREPOWER THE POINT CAN BE ARGUED UNTIL THE COWS COME HOME BUT IT IS NOT HARD TO SEE WHY CHURCHILL TOOK THIS VIEW IN 1940 THE ANGLOFRENCH GROUND FORCES HAD JUST BEEN BEATEN BY A NUMERICALLY INFERIOR ARMY BECAUSE THE GERMAN MOTIVATION WAS FAR GREATER THE FRENCH HAD LOST THE WILL TO WIN OR EVEN TO AVOID DEFEAT AND THE BRITISH HAD NOT YET FOUND IT GERMAN AIR SUPERIORITY HAD PLAYED A PART AS IT DID FOR THE JAPANESE DURING THEIR CONQUEST OF MALAYA IN 194142 BUT THE GERMANS WERE TO SHOW IN ITALY IN 1943 AND IN NORTHWEST EUROPE IN 194445 THAT A WELLTRAINED AND STRONGLY MOTIVATED ARMY COULD FIGHT WITH EXTRAORDINARY TENACITY WITH LITTLE OR NO AIR SUPPORT WHILE HEAVILY OUTNUMBERED AND OUTGUNNED ON THE GROUND I WILL ALWAYS BELIEVE THAT IN 19401941 CHURCHILL WAS RIGHT TO SEE DEFEATISM NOT LACK OF MATERIAL AS THE REAL ENEMY HE WAS CONFIDENT THAT IF HE COULD OVERCOME THE LACK OF WILL TO WIN THE FORCE OF GEOPOLITICS WOULD EVENTUALLY DO FOR HITLER AS INDEED IT DID TO NEGOTIATE WITH HIM THEN WOULD THEREFORE BE TO SURRENDER TO BRITAIN'S WORST WEAKNESS WHICH LAY WITHIN ITSELF BESIDES NEITHER MR CHARMLEY NOR MR CLARK HAS EXAMINED WHAT PARLEYING WITH HITLER WOULD HAVE ACTUALLY MEANT NO ONE EVER SUCCEEDED IN GETTING HITLER TO STICK TO A PROMISE OR AN AGREEMENT NO ONE INDEED EVER NEGOTIATED WITH HIM SUCCESSFULLY THE ONLY EXCEPTION BEING GENERAL FRANCO WHO EFFECTIVELY BAFFLED HITLER WITH HIS INTRANSIGENCE THE IDEA OF A DEAL WHICH WOULD BE PERMANENT WAS NEVER A POSSIBILITY MR CHARMLEY'S SECOND CONTENTION IS THAT CHURCHILL WAS TOO BUSY FIGHTING THE OLD ENEMY GERMANY TO PERCEIVE THE DANGER FROM THE NEW ONE RUSSIA THIS WAS A THOUGHT WHICH STRUCK CHURCHILL HIMSELF WAS HE HE ASKED HAROLD MACMILLAN IN 1943 BEHAVING LIKE OLIVER CROMWELL IN THE MID17TH CENTURY OBSESSED BY THE POWER OF SPAIN AND THUS FAILING TO RECOGNIZE THE RISING POWER OF FRANCE THE ANSWER IS THAT CHURCHILL WAS NEVER BLIND TO THE MENACE OF SOVIET POWER AND INFLUENCE WHICH TO HIM MEANT BOLSHEVISM BUT HE BELIEVED RIGHTLY IN MY OPINION THAT THE GERMAN THREAT WAS MORE IMMINENT AND EVEN MORE RUTHLESS HE THOUGHT THAT WHILE BRITAIN COULD NOT LIVE WITH A TRIUMPHANT HITLERITE GERMANY IT COULD IN ALLIANCE WITH THE US LIVE WITH A TRIUMPHANT SOVIET UNION THAT PROVED TO BE IN EVERY WAY A CORRECT CALCULATION BY OMITTING CHURCHILL'S POST1945 CAREER MR CHARMLEY ROBS IT OF ITS VITAL CODA THE PART CHURCHILL PLAYED IN ALERTING THE WORLD TO THE EMERGENCE OF THE IRON CURTAIN AND THE SOVIET THREAT CHURCHILL ALWAYS PUT THE ANGLOAMERICAN ALLIANCE FIRST IN A SENSE THE CREATION OF THE NORTH ATLANTIC TREATY ORGANIZATION WHICH FULLY INVOLVED THE US IN THE DEFENSE OF DEMOCRACY IN EUROPE ON A PERMANENT BASIS WAS THE CLIMAX OF HIS CAREER IN GEOPOLITICS EVEN THOUGH HE WAS OUT OF OFFICE WHEN THE TREATY WAS SIGNED FOR NATO FLOWED NATURALLY FROM THE CLOSE WARTIME ALLIANCE HE CREATED AND WHICH WOULD I THINK HAVE BEEN IMPOSSIBLE UNDER ANY OTHER BRITISH LEADER NATO EVENTUALLY OUTFACED AND OUTLIVED THE SOVIET EMPIRE WHICH CHURCHILL RIGHTLY GUESSED WOULD NOT LAST FOREVER AND WOULD DIE OF ITS OWN FAILURES IF THE WESTERN FREE ENTERPRISE POWERS POOLED THEIR COLLECTIVE STRENGTH THE LOSS OF THE BRITISH EMPIRE WAS NEITHER HERE NOR THERE MERELY A MATTER OF FASHION IT WAS THE FASHION TO DISBAND THE EMPIRE IN 194570 JUST AS IT IS BECOMING THE FASHION TO REVIVE THE NOTION OF WHITE MAN'S BURDEN IN THE 1990S AS WITNESS SOMALILAND CHURCHILL'S WARTIME STRATEGY OF MAKING HITLER ENEMY NUMBER ONE HAD LITTLE IMPACT ON WHETHER THE EMPIRE CONTINUED OR NOT WHAT IT DID ENSURE WAS THAT BRITAIN DESPITE A HUNDRED YEARS OF RELATIVE DECLINE WAS STILL DEMOCRATIC AND INDEPENDENT AT THE END OF THE 20TH CENTURY MR JOHNSON'S LAST BOOK WAS BIRTH OF THE MODERN SEE RELATED LETTER LETTERS TO THE EDITOR EARLIER DEFEAT OF HITLER WAS POSSIBLE WSJ SEPT 10 1993 9308160079 YY93 MM09 9309100118 930804 THE NATIVISTS ARE WRONG BY JULIAN L SIMON IN THE PAST YEAR TWO PUBLICATIONS HAVE STOKED THE FIRES OF NATIVISM AND THE ANTIIMMIGRATION MOVEMENT THE FIRST IS A LOS ANGELES COUNTY STUDY THE SECOND A PAPER WRITTEN FOR A POPULATIONCONTROL ORGANIZATION BY RICE UNIVERSITY PROFESSOR EMERITUS DONALD HUDDLE THESE WRITINGS RAISE IMPORTANT QUESTIONS WHETHER IMMIGRANTS RIP OFF THE WELFARE SYSTEM AND WHETHER IMMIGRATION INCREASES NATIVE UNEMPLOYMENT MY ECONOMIC ANALYSES AND THOSE OF OTHERS DURING THE PAST 15 YEARS CONVINCE ME THAT THE ANSWER TO BOTH QUESTIONS IS A RESOUNDING NO IMMIGRANTS DO NOT ABUSE THE WELFARE SYSTEM NOR DO THEY STEAL JOBS FROM NATIVEBORN AMERICANS START WITH THE WELFARE SYSTEM THE MOST IMPORTANT FACT ABOUT IMMIGRANTS IS THAT THEY TYPICALLY ARRIVE WHEN THEY ARE YOUNG AND HEALTHY HENCE THEY USE FEWER WELFARE SERVICES ON AVERAGE THAN DO NATIVE FAMILIES NEW COHORTS DO NOT RECEIVE EXPENSIVE SOCIAL SECURITY MEDICARE AND OTHER AID TO THE AGED AND FOR ITS FIRST SEVERAL DECADES IN AMERICA THE AVERAGE IMMIGRANT FAMILY PAYS MORE TAXES THAN DOES THE AVERAGE NATIVE FAMILY ALTOGETHER THE IMMIGRANT FAMILY CONTRIBUTES YEARLY ABOUT 2500 MORE IN TAXES TO PUBLIC COFFERS THAN IT OBTAINS IN SERVICES THESE FINDINGS ARE BASED ON MASSIVE CENSUS BUREAU DATA FOR 1970S EARNINGS FAMILY COMPOSITION AND PUBLIC SERVICES USED THEY ARE CORROBORATED BY A SIMILAR STUDY USING 1980S DATA FOR CANADA BY ST MARY'S UNIVERSITY ECONOMIST ATHER AKBARI AND BY RECENT TENTATIVE STUDIES BY ME AND OTHERS FOR GERMANY AND SWITZERLAND ANTIIMMIGRATION ACTIVISTS CLAIM THAT THE LOS ANGELES COUNTY REPORT SHOWED THAT IMMIGRANTS TAKE MORE THAN THEY PUT INTO OUR SYSTEM IN FACT THE REPORT DIDN'T SAY THAT THE REPORT STATED THAT RECENT IMMIGRANTS GENERATE 18 TIMES MORE REVENUE TO THE FEDERAL GOVERNMENT NINE TIMES MORE REVENUE TO THE STATE OF CALIFORNIA AND ABOUT TWO AND ONEHALF TIMES MORE REVENUE TO OTHER LOCAL GOVERNMENT ENTITIES THAN TO THE COUNTY OF LOS ANGELES THE LA COUNTY REPORT CALCULATED IMMIGRANTRELATED REVENUES TO THE COUNTY OF 139 MILLION VS COSTS OF 947 MILLION THIS IS MISLEADING IF ONLY BECAUSE IT REVEALS MORE ABOUT OUR SYSTEM OF TAXATION AND DISTRIBUTION THAN ABOUT IMMIGRANTS THE FEDERAL GOVERNMENT RECEIVES MOST OF THE TAXES IMMIGRANTS PAY WHILE LOCAL COMMUNITIES COUGH UP MOST OF THEIR WELFARE AND IMMIGRATION COSTS BUT EVEN IF THE NUMBERS WERE CORRECT THEY IMPLY THAT TOTAL TAXES PAID BY THIS GROUP 43 BILLION IN FEDERAL STATE AND LOCAL TAXES ARE QUADRUPLE THEIR LOCAL COSTS THE LA STUDY HAS ANOTHER SHORTCOMING IT CONSIDERS ONLY THOSE IMMIGRANTS WHO ARRIVED AFTER 1980 IT LUMPS EARLIER IMMIGRANTS THOSE WHO MAKE THE LARGEST TAX CONTRIBUTIONS INTO THE SAME CATEGORY AS NATIVES THIS GROUP OF EARLIER IMMIGRANTS IS PARTICULARLY PRODUCTIVE AND PUTS A GREAT DEAL MORE INTO THE SYSTEM THAN IT TAKES OUT THE REPORT IS FURTHER FLAWED BECAUSE IT GIVES NO APPARENT SOURCE FOR CRUCIAL INCOME ESTIMATES IN ANOTHER STUDY IMMIGRANTS IN LOS ANGELES COUNTY WERE STUDIED BY REBECCA CLARK AND JEFFREY PASSEL OF THE URBAN INSTITUTE THEY TOO ESTIMATED TAX REVENUES FROM RECENT IMMIGRANTS AND REACHED A FAR DIFFERENT CONCLUSION THEY FOUND THAT THIS GROUP PAYS MORE PROPERTY TAXES MORE FICA MORE UNEMPLOYMENT INSURANCE AND MORE FEDERAL AND STATE INCOME TAXES THAN THE LA COUNTY STUDY SAID THEY DID ON THE COST SIDE HOT BUTTON ISSUES LIKE PUBLIC SOCIAL SERVICES AND HEALTH SERVICES MS CLARK AND MR PASSEL FOUND THAT THE COUNTY'S STATISTICAL WORK OVERESTIMATED OUTLAYS THEY ALSO FOUND THAT THE STUDY DIDN'T LOOK AT A CRUCIAL NUMBER THE BALANCE OF PAYMENTS FOR NONIMMIGRANTS THE VARIOUS IMMIGRANT GROUPS MAY BE NO DIFFERENT FROM OTHER GROUPS SAYS MS CLARK INDEED SHE AND MR PASSEL NOTE THAT NUMBERS FROM THE LA REPORT ITSELF SUGGEST THAT NOT ONLY IMMIGRANTS BUT ALSO NATIVES COST MORE THAN THEY PAY IN TAXES AT THE COUNTY LEVEL A NEARABSURDITY THE OTHER MAJOR PUBLICATION FUELING THE ANTIIMMIGRATION DEBATE THAT OF THE RICE UNIVERSITY'S DONALD HUDDLE ALSO ASKS WHETHER IMMIGRANTS COST THE US MORE THAN THEY GIVE THE FIRST BULLETED ITEM IN HIS SUMMARY READS 118 MILLION LEGAL IMMIGRANTS PRESENT IN THE US IN 1992 COST ALL LEVELS OF GOVERNMENT THAT YEAR MORE THAN 45 BILLION ABOVE AND BEYOND THE TAXES THEY PAID BUT MR HUDDLE BUILDS ON THE FLAWED LA COUNTY NUMBERS FOR EXAMPLE ONE OF HIS FUNDAMENTAL TABLES TAX PAYMENTS BY FLOW OF LEGAL IMMIGRANTS FOR 1992 IS BASED LARGELY ON THOSE COUNTY FIGURES HE ALSO ADDUCES NUMBERS FROM OTHER SOURCES AND PROCEEDS WITH CALCULATIONS THAT I CHALLENGE ANYONE TO MAKE SENSE OF MOREOVER MR HUDDLE BASES MUCH OF HIS WORK ON LEGAL IMMIGRANTS FOR 1992 WHO CANNOT POSSIBLY BE REPRESENTATIVE OF ALL IMMIGRANTS ISSUE TWO IN THE CURRENT ANTIIMMIGRATION CLAMOR IS UNEMPLOYMENT A SOLID BODY OF STUDIES SHOWS THAT CONTRARY TO MR HUDDLE'S ASSERTIONS IMMIGRANTS DO NOT INCREASE NATIVE UNEMPLOYMENT THOMAS MULLER OF THE URBAN INSTITUTE COMPARED LABORMARKET CONDITIONS IN LOS ANGELES WITH THOSE IN THE REST OF THE US THE INFLUX OF IMMIGRANTS IN SOUTHERN CALIFORNIA IN THE 1970S AFFECTED NATIVE UNEMPLOYMENT LITTLE IF AT ALL HE SAYS THOMAS ESPENSHADE OF PRINCETON AND MR MULLER FOUND THAT IN WEST COAST METROPOLITAN AREAS BLACK UNEMPLOYMENT RATES ARE NOT INCREASED IF ANYTHING THEY ARE LOWERED BY A RISE IN THE PROPORTION OF MEXICAN IMMIGRANTS KEVIN MCCARTHY AND R BURCIAGA VALDEZ OF THE RAND CORPORATION FOUND IN THE 1980S THAT IN CALIFORNIA IMMIGRANTS' NEGATIVE LABOR MARKET EFFECTS HAVE BEEN MINOR AND CONCENTRATED AMONG THE NATIVEBORN LATINO POPULATIONS USING 1980 CENSUS DATA GREGORY DEFREITAS OF HOFSTRA UNIVERSITY SHOWED THAT HISPANIC IMMIGRANTS MANY OF THEM ILLEGAL HAD NO DISCERNIBLE NEGATIVE EFFECT ON UNEMPLOYMENT JOSEPH G ALTONJI OF NORTHWESTERN AND DAVID CARD OF PRINCETON STUDIED THE EFFECTS OF IMMIGRANTS ON LESSSKILLED NATIVES IN VARIOUS CITIES IN 1970 AND 1980 THEY CONCLUDED WE FIND LITTLE EVIDENCE THAT INFLOWS OF IMMIGRANTS ARE ASSOCIATED WITH LARGE OR SYSTEMATIC EFFECTS ON THE EMPLOYMENT OR UNEMPLOYMENT RATES OF LESSSKILLED NATIVES STEPHEN MOORE RICHARD SULLIVAN AND I STUDIED THE RELATIONSHIP BETWEEN THE RATES OF IMMIGRATION AND THE UNEMPLOYMENT RATES AMONG US CITIES DURING ALL THE YEARS FOR WHICH DATA EXIST 1960 TO 1977 THE GOVERNMENT CEASED TO COLLECT DATA IN THIS FASHION AFTER 1977 CONCLUSION THE EFFECT WAS AT MOST INSIGNIFICANT IT IS LIKELY THAT THERE WAS NO EFFECT AT ALL NOW CONTRAST THIS CONSENSUS WITH THE WORK BY DONALD HUDDLE ACCORDING TO ONE OF MR HUDDLE'S PUBLICATIONS HE SENT STUDENTS TO CONSTRUCTION SITES IN THE HOUSTONGALVESTON AREA WHEREVER THEY OBSERVED ILLEGAL IMMIGRANTS MR HUDDLE SIMPLY ASSUMED THAT THEY HAD DISPLACED NATIVES HE THEN PROJECTED THAT ONTO THE US AS A WHOLE ARRIVING AT THE ASSUMPTION THAT ONE MILLION NATIVES ON CONSTRUCTION PROGRAMS ALONE WERE PERMANENTLY UNEMPLOYED BECAUSE OF IMMIGRATION MR HUDDLE USES A STATIC ANALYSIS THAT DOES NOT TAKE INTO ACCOUNT THE DYNAMICS OF EMPLOYMENT FEW WORKERS REMAIN PERMANENTLY UNEMPLOYED EVEN IF THEY LOSE JOBS AND AS SOME NATIVE WORKERS MOVE UP THE JOB LADDER THEY LEAVE BEHIND OPPORTUNITIES FOR THE LESS SKILLED WHO MAY BE IMMIGRANTS AND HIS METHOD COUNTS ONLY THE JOBS AT WHICH IMMIGRANTS WORK DISREGARDING THE OTHER SIDE OF THE EQUATION AS WORKERS IMMIGRANTS OR NATIVE YOUTHS ENTER THE LABOR FORCE THEY NOT ONLY TAKE JOBS BUT ALSO MAKE NEW JOBS BY SPENDING THEIR EARNINGS ON THE OUTPUT OF OTHER WORKERS THAT GENERATES EMPLOYMENT BOTH THE LA COUNTY REPORT AND MR HUDDLE'S WORK HAVE RECEIVED A GREAT DEAL OF ATTENTION ESPECIALLY IN RECENT MONTHS AS THE HEADLINES ARE FULL OF STORIES ABOUT CHINESE BOAT PEOPLE AND FOREIGNERS WHO ARE SUPPOSEDLY ABUSING AMERICA'S LENIENT SYSTEM OF POLITICAL ASYLUM ANTIIMMIGRATIONISTS HAVE USED BOTH STUDIES AS EVIDENCE CALLING FOR THE US TO CUT BACK SUBSTANTIALLY THE NUMBER OF IMMIGRANTS IT ACCEPTS IF THIS IS THE BEST EVIDENCE THEY CAN FIND THEY HAVE NO CASE MR SIMON WHO TEACHES BUSINESS AT THE UNIVERSITY OF MARYLAND IS THE AUTHOR OF THE ECONOMIC CONSEQUENCES OF IMMIGRATION BASIL BLACKWELL 1989 SEE RELATED LETTERS LETTERS TO THE EDITOR DEEP DENIAL ON THE IMMIGRATION ISSUE WSJ SEPT 10 1993 9308040135 YY93 MM09 9309100007 930816 THE BUDGET CUTS CLINTON MISSED BY WILLIAM NISKANEN AND STEPHEN MOORE ONE OF THE GREAT TRAGEDIES OF THE CLINTON BUDGET PLAN IS THAT IT SQUANDERED A RARE OPPORTUNITY TO ALLEVIATE THE DEFICIT CRISIS SUBSTANTIALLY AT A TIME WHEN THE AMERICAN PUBLIC FINALLY APPEARS READY AND WILLING TO ACCEPT DEEP CUTBACKS IN FEDERAL SPENDING PROGRAMS THE ADMINISTRATION HAS INCREASED OUTLAYS BY ABOUT 110 BILLION IN THE FIRST TWO YEARS OF ITS PACKAGE AND 300 BILLION THROUGH 1998 FAR FROM RESTRAINING ENTITLEMENTS THE BUDGET WIDENS ELIGIBILITY FOR THE EARNED INCOME TAX CREDIT MEDICAID AND FOOD STAMPS AT A TAXPAYER COST OF 40 BILLION THE ONLY GENUINE SPENDING CUTS ARE CONFINED TO THE PENTAGON HENCE WE NOW HAVE THE UNUSUAL SITUATION WHERE EVEN SOME LIBERAL DEMOCRATS IN CONGRESS ARE COMPLAINING THAT FEDERAL SPENDING HAS NOT BEEN CUT ENOUGH FOR ALL THESE REASONS WE HOPE THAT THE PRESIDENT IS SINCERE WHEN HE SAYS THAT THIS FALL HE WILL UNVEIL AN ADDITIONAL LIST OF COMPREHENSIVE BUDGET CUTS IF HE IS HE AND OTHER DEMOCRATS MIGHT SPEND SERIOUS TIME LOOKING FOR THE MANY AND SUBTLE BUDGET CUTS THIS NATION NEEDS IF HE WANTS A SHORTER ANSWER WE THINK WE CAN BE HELPFUL THIS JANUARY WE PRODUCED A BUDGET PROPOSAL THAT WOULD REDUCE BASELINE FEDERAL EXPENDITURES IN 1998 BY ABOUT 250 BILLION BELOW WHAT THE PRESIDENT'S BUDGET YIELDS OUR PLAN WOULD REDUCE THE DEFICIT TO BELOW 1 OF GROSS DOMESTIC PRODUCT IT IS NOW 5 BY ALLOWING FEDERAL OUTLAYS TO CLIMB ONLY FROM 146 TRILLION THIS YEAR TO 152 TRILLION IN 1998 WE DO NOT BELIEVE THAT THERE ARE A LARGE NUMBER OF AMERICANS WHO THINK THAT THE FEDERAL GOVERNMENT CANNOT DO THE THINGS IT IS SUPPOSED TO DO FOR 152 TRILLION ONE CONSPICUOUS FAILURE OF THE BUDGET PLAN THAT MR CLINTON SIGNED INTO LAW LAST WEEK IS THAT NOT A SINGLE ONE OF THE THOUSANDS OF MAJOR FEDERAL AGENCIES IS SCHEDULED TO BE CANCELED BUT IF WE ARE GOING TO REINVENT GOVERNMENT WE HAVE TO BE ABLE TO DISCARD OBSOLETE OR FAILED PROGRAMS HERE IS OUR SUGGESTED LIST OF THE DIRTY DOZEN THAT OUGHT TO BE TERMINATED BY SIMPLY ABOLISHING THESE 12 UNNECESSARY SPENDING PROGRAMS THE FEDERAL GOVERNMENT WOULD SAVE 115 BILLION OVER FIVE YEARS THIS ALONE WOULD BOOST MR CLINTON'S ALLEGED BUDGET SAVINGS BY ALMOST HALF VIRTUALLY ALL OF THESE PROGRAMS EXIST TODAY NOT BECAUSE THEY ARE SUPPORTED BY THE AMERICAN PUBLIC BUT BECAUSE THEY ARE SUPPORTED BY WASHINGTON BUREAUCRATS AND NARROW SPECIAL INTEREST GROUPS SO PLEASE MR PRESIDENT LET'S END THE PAST QUARTER CENTURY OF GRIDLOCK AND FISCAL PARALYSISSHIRT MR NISKANEN IS CHAIRMAN OF THE CATO INSTITUTE MR MOORE IS AN ECONOMIST ON LEAVE FROM CATO WORKING FOR THE MINORITY STAFF OF THE JOINT ECONOMIC COMMITTEE SEE RELATED LETTER LETTERS TO THE EDITOR WHAT WE DO FOR YOU WSJ SEPT 10 1993 9308160054 YY93 MM09 9309090175 930909 WORLD MARKETS TOKYO PRICES FALL FOR THIRD DAY IN ROW SHARES IN LONDON RESIST PRESSURES END WITH SMALL LOSS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SOFTENED WEDNESDAY FOR THE THIRD DAY IN A ROW AS INVESTORS ONCE AGAIN CAPTURED WINNINGS FROM A TWOWEEK PRICE RUNUP LONDON EQUITIES EASED SOME BUT THE MARKET RESISTED PRESSURE FROM DISAPPOINTING CORPORATE NEWS AND WALL STREET'S SHARP DROP THE PREVIOUS DAY FRANKFURT PRICES ENDED MIXED BUT THE MAIN INDEX FELL FOR THE FOURTH CONSECUTIVE SESSION WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11253 DOWN 094 REFLECTING DECREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14434 UP 109 OR 076 WITH ASIATIC OF MALAYSIA POSTING A 76 GAIN IN ITS LOCAL CURRENCY MEDICAL SUPPLIES STOCKS TRAILED AT 7932 DOWN 299 OR 36 WITH BAXTER INTERNATIONAL OF THE US SLIDING 13 IN LOCAL CURRENCY IN THE LARGELY DIRECTIONLESS SESSION SHARE PRICES SKIDDED 07 IN THE FIRST HOUR WITH JAPANESE AND FOREIGN INVESTORS TAKING PROFITS AFTER RECENT GAINS PRICES RECOVERED IN A DEALERLED PUSH TO BOOST THE NIKKEI ABOVE 21000 BUT A SECOND ROUND OF PROFITTAKING TOOK HOLD IN THE LATE AFTERNOON IN THE TWO WEEKS ENDED LAST FRIDAY THE NIKKEI RALLIED 34 ON WIDESPREAD ANTICIPATION OF A JAPANESE INTERESTRATE REDUCTION AMONG WEDNESDAY'S TOP GAINERS WERE STOCKS TIED TO AN ANTICIPATED REDENOMINATION OF THE JAPANESE CURRENCY ON SPECULATION THAT THE GOVERNMENT IS CONSIDERING SUCH A MOVE TO BOLSTER THE ECONOMY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 32 POINTS TO 30354 THE FT 30STOCK INDEX FELL 71 POINTS TO 23726 VOLUME WAS 6003 MILLION SHARES DOWN FROM 6262 MILLION SHARES A DAY EARLIER THE PERFORMANCE WAS VIEWED AS GOOD CONSIDERING NEW YORK STOCKS TUMBLED TUESDAY AND WEAKENED FURTHER YESTERDAY MORNING THE LONDON EXCHANGE OPENED 17 POINTS LOWER AND THOUGH SUBSEQUENT CORPORATE NEWS WASN'T ENCOURAGING THE 100SHARE INDEX FINALLY MANAGED TO RECOVER ALMOST ALL OF THE OPENING DECLINE BUT THE MARKET ISN'T EXPECTED TO DO MUCH SIGNIFICANT UNTIL EUROPEAN CENTRAL BANKS CUT THEIR INTEREST RATES TO STIMULATE RECESSIONARY ECONOMIES LONDON'S MAIN INDEX HAS FOUND TECHNICAL SUPPORT AROUND 3000 AS THE MARKET HAS GENERALLY IGNORED BAD NEWS ASSOCIATED WITH THE CONTINENT'S ECONOMIC PROBLEMS FOCUSING RATHER ON BRITAIN AND THE US AS THE ENGINES FOR A GROWTH REBOUND SOME BRITISH STOCKS ARE STILL CONSIDERED ATTRACTIVELY PRICED EVEN AFTER THE RECENT RALLY IN FRANKFURT THE MARKET CONSOLIDATION CONTINUED THE DAX 30STOCK INDEX EDGED DOWN 067 POINT TO 188529 MAKING THIS WEEK'S TOTAL DECLINE 3987 POINTS THE MARKET LACKED DIRECTION AND MOST ACTIVITY WAS DETERMINED BY DERIVATIVES TRADING OF THE DAX STOCKS 14 ROSE AND 16 FELL NEWS LATE IN THE SESSION THAT VOLKSWAGEN MIGHT PAY A 1993 DIVIDEND HELPED THE MARKET RECOVER FROM EARLY LOWS DESPITE US DOLLAR WEAKNESS EXPORTSENSITIVE SECTORS SUCH AS CHEMICALS REBOUNDED IN PARIS STOCKS ENDED LOWER IN UNEVENTFUL TRADING AS THE MARKET SHIFTED ITS ATTENTION TO TODAY'S MEETING OF GERMAN CENTRAL BANK POLICY MAKERS WHO HAVE BEEN INUNDATED WITH GLOBAL APPEALS TO LOWER THEIR INTEREST RATES IN AMSTERDAM PRICES SLUMPED ON LATE INDEXDRIVEN SELLING MILAN STOCKS PLUNGED IN WHAT WAS DESCRIBED AS A BRUTAL SESSION AS PARTICIPANTS UNWOUND POSITIONS AHEAD OF TECHNICAL DEADLINES NEXT WEEK IN MADRID PRICES FELL AS MOST INVESTORS KEPT TO THE SIDELINES AHEAD OF THE GERMAN BUNDESBANK MEETING ON MONETARY POLICY IN STOCKHOLM EQUITIES LOST GROUND FOR THE SECOND DAY IN A ROW ON PRICE DROPS FOR BLUE CHIPS INTERESTRATE JITTERS AND ANXIETY ABOUT THE MARKET'S ABILITY TO ABSORB A WAVE OF NEW STOCK ISSUES IN ZURICH THE MARKET WAS PREOCCUPIED BY THE COMING GERMAN CENTRAL BANK MEETING ON RATES AND SWISS SHARE PRICES CLOSED LOWER IN BRUSSELS SHARES DROPPED BROADLY AS THE BELGIAN FRANC WEAKENED AND INVESTORS AWAITED MONETARY NEWS BEFORE TAKING ANY NEW STOCK POSITIONS IN SYDNEY SHARES SLID ON A PLUNGE IN THE PRICE OF GOLD AND WEAKER US STOCKS WITH THE MARKET'S MAIN INDEX CLOSING AT ITS LOWEST LEVEL IN 10 SESSIONS IN SINGAPORE PRICES FELL AFTER GAINS EVAPORATED WHEN INSTITUTIONAL AND RETAIL INVESTORS COLLECTED BROAD PROFITS IN HONG KONG DRIVEN BY FUTURESRELATED DEALINGS SHARES POSTED A RECORD HIGH ON BUYING OF BLUECHIP LAGGARDS THE HANG SENG INDEX ROSE 6042 POINTS TO 760713 BREAKING THE RECORD OF 760526 SET AUG 19 THE STRONG PERFORMANCE WAS DOMINATED BY OVERSEAS BUYING INVESTORS ALSO WERE BUOYED BY RUMORS OF RESOLUTION OF THE DISPUTED FINANCING PLAN FOR HONG KONG'S NEW AIRPORT IN TAIPEI STOCKS GAVE UP EARLY GAINS AND ENDED LOWER AS INVESTORS WEIGHED WEAK MARKET FUNDAMENTALS TAIWAN'S SECONDQUARTER TRADE DEFICIT AND JULY'S WEAK EXPORT PERFORMANCE ADDED TO PESSIMISM BECAUSE OF NEW SECURITIES REGULATIONS IMPOSED RECENTLY IN SEOUL SHARES DROPPED SHARPLY AMID WIDESPREAD CAUTIOUSNESS FOLLOWING RECENT SURGES 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 9309090174 930909 DIVIDEND NEWS QUAKER OATS CO QUAKER OATS CO CHICAGO RAISED ITS QUARTERLY DIVIDEND TO 53 CENTS A COMMON SHARE FROM 48 CENTS A SHARE PAYABLE OCT 15 TO STOCK OF RECORD SEPT 17 QUAKER IS A GROCERY AND PET FOOD CONCERN 9309090173 930909 DIVIDEND NEWS NEW PLAN REALTY TRUST NEW PLAN REALTY TRUST NEW YORK RAISED ITS QUARTERLY DIVIDEND TO 32 1/2 CENTS FROM 32 1/4 CENTS THE REAL ESTATE INVESTMENT TRUST SAID THE DIVIDEND WILL BE PAID OCT 5 TO SHAREHOLDERS OF RECORD SEPT 20 9309090172 930909 WHO'S NEWS DAYTON HUDSON CORP DAYTON HUDSON CORP MINNEAPOLIS ROBERT J ULRICH 50 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TARGET THE RETAILER'S LARGEST OPERATING DIVISION WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO 14 9309090171 930909 WHO'S NEWS AMTRAN INC AMTRAN INC INDIANAPOLIS ANDREJS P STIPNIEKS A SENIOR GOVERNMENT SOLICITOR IN THE OFFICE OF COMMERCIAL LAW AUSTRALIAN GOVERNMENT SOLICITOR'S OFFICE WAS NAMED A DIRECTOR OF THIS PROVIDER OF AIRLINE SERVICES TO LEISURE TRAVELERS INCREASING BOARD MEMBERSHIP TO SEVEN 9309090170 930909 ENTERPRISE RUSSIA IS SHORT OF MANY THINGS BUT NOT OPPORTUNITIES AMERICANS FINDING SUCCESS BY FILLING GAPS IN SERVICES CONSUMER GOODS BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN ALEXANDER MALCHIK BEGAN MAKING BUSINESS TRIPS TO WHAT WAS THEN STILL THE SOVIET UNION IN 1990 HE ALWAYS TOOK ALONG A FEW POUNDS OF COFFEE AT THE TIME COFFEE THERE WAS SCARCE AND THE BEANS STALE MR MALCHIK SAYS HE SOON DISCOVERED THAT MANY OTHER FOREIGNERS MISSED GOOD COFFEE TOO SO HE AND HIS WIFE APPROACHED THE OWNERS OF MONTANA COFFEE TRADERS IN THEIR HOMETOWN OF WHITEFISH MONT AND SUGGESTED STARTING A GOURMET COFFEE BUSINESS IN RUSSIA IN MARCH 1992 MONTANA COFFEE TRADERS VOSTOK WHICH THE MALCHIKS COOWN WITH OTHER AMERICANS BEGAN ROASTING BEANS IN MOSCOW WITHIN TWO MONTHS THE COMPANY WAS TURNING A PROFIT TODAY IT SUPPLIES COFFEE TO ABOUT TWO DOZEN FOREIGN BUSINESSES SEVERAL LUXURY HOTELS AND 15 HARDCURRENCY SUPERMARKETS IN MOSCOW DESPITE THE FLOWERING OF RUSSIAN ENTERPRISE THE THRONGS OF WESTERNERS MOVING TO RUSSIA THESE DAYS OFTEN FIND LOCAL SERVICES FAR BELOW WESTERN STANDARDS THE RESULT IS THAT MANY FOREIGNERS IN RUSSIA NOW FIND THEIR GREATEST OPPORTUNITY LIES IN SELLING TO OTHER FRUSTRATED FOREIGNERS OFTEN RUSSIANS QUICKLY BECOME CUSTOMERS TOO TODAY SMALL FOREIGN BUSINESSES ARE OFFERING EVERYTHING FROM CATERING TO VIDEO RENTALS ALL FOR HARD CURRENCY THERE'S A LOT OF MONEY TO BE MADE SAYS MICHAEL L OSTER MANAGING DIRECTOR OF OSTER & CO A MOSCOW REAL ESTATE AND DEVELOPMENT FIRM BASICALLY THERE'S STILL A NEED FOR JUST ABOUT EVERYTHING A FORMER MANAGEMENT CONSULTANT WHO CAME TO MOSCOW TO LEARN ABOUT THE SOVIET ECONOMY MR OSTER DECIDED TO START HIS COMPANY WHILE LOOKING FOR AN APARTMENT IN LATE 1991 THROUGH RUSSIAN FRIENDS HE FOUND DOZENS AND REALIZED HOW VALUABLE HE COULD BE AS A GOBETWEEN FOR RUSSIAN PROPERTY OWNERS AND FOREIGN EXECUTIVES WHILE WESTERN COMPANIES NEEDED STAFF HOUSING MUCH OF WHAT WAS ON THE MARKET LACKED THE AMENITIES WESTERNERS DEMAND AND RUSSIAN REAL ESTATE AGENTS OFTEN DEMANDED OUTLANDISH RENTS SO MR OSTER GOT INTO THE BUSINESS OF RENTING APARTMENTS FROM RUSSIANS RENOVATING THEM TO WESTERN STANDARDS AND SUBLETTING THEM TO FOREIGNERS FOR 1000 TO 3000 A MONTH IT HELPS US THAT LARGE FIRMS WITH DEEP POCKETS ARE FINALLY GETTING ACTIVE IN RUSSIA SAYS MR OSTER HE SAYS HE NOW HAS 20 RUSSIAN EMPLOYEES A NEW OFFICE IN ST PETERSBURG AND A LIST OF CLIENTS THAT INCLUDES RJR NABISCO HOLDINGS CORP AND COCACOLA CO LIKE MR OSTER MANY AMERICAN ENTREPRENEURS HAVE GOTTEN IDEAS FOR LAUNCHING BUSINESSES IN RUSSIA BY LIVING IN RUSSIA AND SEEING FOR THEMSELVES HOW BAD THE SERVICES ARE SOME COMMON HORROR STORIES INCLUDE SHEETS THAT COME BACK FROM THE LAUNDRY WITH HOLES IN THEM SHIRTS THAT COME BACK FROM THE DRY CLEANERS MISSING BUTTONS SCRATCHY COPIES OF MOVIE VIDEOS AND THE WIDESPREAD RUDENESS OF SHOP EMPLOYEES ONE OF THE MOST TRYING ORDEALS FOR VISITORS IS THE SEARCH FOR A GOOD MEAL EATING OUT USUALLY MEANS EITHER SPENDING A LARGE SUM AT A HARDCURRENCY RESTAURANT OR MAKING DO WITH FATTY RUSSIAN COMMERCIAL FARE IT WAS A DILEMMA THAT LISA DOBBS A TRAINED FRENCH CHEF AND WIFE OF A FOREIGN CORRESPONDENT TURNED INTO A MONEYMAKING ENTERPRISE TWO YEARS AGO SHE CALLED A WESTERN NEWS ORGANIZATION AND OFFERED TO COOK LUNCH AND DINNER EVERY DAY FOR ITS MOSCOW EMPLOYEES IT ACCEPTED SOON SHE FORMED MOSCOW CATERING CO KALITNIKOVSKI PRODUKTI TODAY SHE SAYS THE CATERING FIRM HAS 18 EMPLOYEES AND IS SWAMPED WITH ORDERS IT RECENTLY BEGAN SELLING PREPARED FOOD BEGINNING ENTREPRENEURS AREN'T THE ONLY BENEFICIARIES OF RUSSIA'S TURN TO A MARKET ECONOMY ESTABLISHED US COMPANIES ARE ALSO FINDING NICHES FEDERAL NEWS SERVICE A PRIVATELY OWNED WASHINGTON DC NEWS AGENCY OPENED A MOSCOW OFFICE LAST YEAR AFTER ITS PRESIDENT VISITED RUSSIA AND REALIZED THAT NOBODY WAS PROVIDING TIMELY ENGLISH TRANSLATIONS OF LOCAL NEWS CONFERENCES FEDERAL SENDS ENGLISH TRANSCRIPTS OF NEWS CONFERENCES BY FAX OR COMPUTER WITHIN THREE HOURS OF THE EVENT MOST OF THE US PRESS AND MANY EMBASSIES SUBSCRIBE NO ONE ELSE IS DOING WHAT WE'RE DOING SAYS NICHOLAS PILUGIN FEDERAL'S MOSCOW BUREAU CHIEF THE SOVIET LEGACY OF CENTRAL PLANNING HELPS EXPLAIN WHY THE SERVICE INDUSTRY HAS SO MANY GAPS INDEED SOME SERVICES ESSENTIAL TO DOING BUSINESS WERE ALL BUT NONEXISTENT UNTIL RECENTLY TWO YEARS AGO FOR INSTANCE NONE OF THE HANDFUL OF QUASICOMMERCIAL BANKS IN THE COUNTRY CASHED TRAVELERS CHECKS MADE ADVANCES ON CREDIT CARDS OR ISSUED LETTERS OF CREDIT SEIZING ON THE DEARTH OF SUCH BANKING SERVICES A GROUP OF US INVESTORS BOUGHT A 50 STAKE IN MOSCOW'S DIALOG BANK IN 1991 DIALOG IS REGISTERED AS A RUSSIAN BANK BUT THE FACT THAT IT IS PARTLY CAPITALIZED AND RUN BY AMERICANS IS A BIG DRAW PETER DERBY ITS PRESIDENT ESTIMATES THAT TWOTHIRDS OF MOSCOW'S APPROXIMATELY 600 JOINT VENTURES AND FOREIGN BUSINESSES BANK AT DIALOG OF COURSE THE SUCCESS OF AMERICAN ENTREPRENEURS IN RUSSIA HAS BEEN HARDWON JUST REGISTERING ONE'S COMPANY WITH THE RUSSIAN GOVERNMENT TAKES AS LONG AS SIX MONTHS SAYS MRS DOBBS THE CATERER MOST RENOVATED COMMERCIAL REAL ESTATE IN MOSCOW IS TOO EXPENSIVE FOR SMALL FIRMS OFTEN FORCING THEM TO SETTLE IN DINGY OVERCROWDED OFFICE BUILDINGS BUT ONCE THEY GET THEIR FOOT IN THE DOOR OF THE RUSSIAN ECONOMY THE OPPORTUNITIES FOR FOREIGN ENTREPRENEURS ARE HUGE AFTERTAX PROFITS CAN BE REPATRIATED WITHOUT RESTRICTION AND MANY BUSINESSES LAUNCHED TO MEET THE NEEDS OF FOREIGNERS ARE FINDING THAT DEMAND FROM RUSSIANS IS DRIVING GROWTH ALTHOUGH GETTING RUSSIANS TO TRY HIS COFFEE WAS INITIALLY TRICKY THEY THOUGHT THE BEANS WERE BURNT MR MALCHIK ESTIMATES THAT NEARLY AS MANY RUSSIANS AS WESTERNERS NOW SNAP UP MONTANA COFFEE TRADERS BEANS AT A HEFTY 9 A POUND MRS DOBBS SAYS 60 TO 70 OF CONSUMERS WHO BUY HER PREPARED FOOD AT HARDCURRENCY STORES THESE DAYS ARE RUSSIAN THERE'S JUST SO MUCH MONEY HERE SHE SAYS PEOPLE AREN'T JUST SERVICING THE FOREIGN COMMUNITY ANYMORE IT'S THE HARDCURRENCY COMMUNITY NOW 9309090169 930909 CHASE MANHATTAN CORP NOTES NEW YORK CHASE MANHATTAN CORP SAID IT WILL REDEEM OCT 8 ALL 350 MILLION OUTSTANDING FACE AMOUNT OF ITS FLOATING RATE SUBORDINATED NOTES DUE 1995 THE NOTES ARE REDEEMABLE AT 100 OF THEIR FACE AMOUNT PLUS ACCRUED INTEREST OF ABOUT 656 PER 1000 FACE AMOUNT TOTAL REDEMPTION PROCEEDS WILL BE ABOUT 352 MILLION 9309090168 930909 COGNOS PACT WITH METROWERKS OTTAWA COGNOS INC SAID IT HAS SIGNED A PARTNERSHIP AGREEMENT WITH METROWERKS INC A COMPUTER SOFTWARE COMPANY BASED IN ST LAURENT QUEBEC UNDER THE AGREEMENT METROWERKS WILL DEVELOP A NEW VERSION OF COGNOS'S POWERHOUSE WINDOWS PRODUCT TO RUN ON APPLE COMPUTER INC'S MACINTOSH PERSONAL COMPUTERS INCLUDING THE NEXT GENERATION OF MACINTOSH PRODUCTS 9309090167 930909 WHO'S NEWS WANG LABORATORIES INC WANG LABORATORIES INC LOWELL MASS MIAS VAN VUUREN 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT GENERAL MANAGER EUROPE AFRICA AND THE MIDDLE EAST OF THIS COMPUTER SOFTWARE AND SERVICES CONCERN MR VAN VUUREN IS FORMER VICE PRESIDENT AND GROUP GENERAL MANAGER EUROPE FOR UNISYS CORP HE SUCCEEDS RICHARD A NORTZ WHO WILL RESUME RESPONSIBILITIES AS SENIOR VICE PRESIDENT GENERAL MANAGER WORLDWIDE CUSTOMER SERVICE MR NORTZ WAS INTERIM GENERAL MANAGER IN EUROPE 9309090166 930909 FOUNDATION HEALTH CORP UNIT RANCHO CORDOVA CALIF FOUNDATION HEALTH CORP SAID ITS UNIT ASSOCIATED CLAIMS MANAGEMENT INC RECEIVED A THREEYEAR CONTRACT TO PROVIDE SERVICES FOR PACIFIC BELL'S WORKERS' COMPENSATION PROGRAM TERMS WEREN'T DISCLOSED THE COMPANY SAID ASSOCIATED CLAIMS WOULD SERVE ABOUT 50000 EMPLOYEES IN CALIFORNIA PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP 9309090165 930909 CONAGRA INC TO BUY BACK SHARES OMAHA NEB CONAGRA INC SAID ITS DIRECTORS AUTHORIZED IT TO PURCHASE UP TO FOUR MILLION OF ITS COMMON SHARES IN THE OPEN MARKET THE FOOD CONCERN WHICH HAS 2518 MILLION COMMON SHARES OUTSTANDING SAID THAT ANY ACQUIRED SHARES MIGHT BE USED FOR EMPLOYEE INCENTIVE PLANS AND THE CONVERSION OF PREFERRED STOCK AMONG OTHER THINGS 9309090164 930909 WHO'S NEWS SARA LEE CORP SARA LEE CORP CHICAGO LUCIEN NESSIM 52 YEARS OLD WAS NAMED TO THE NEW POST OF CHIEF EXECUTIVE OFFICER OF SARA LEE PERSONAL PRODUCTS EUROPE MR NESSIM WAS CHIEF EXECUTIVE OFFICER OF THIS FOOD AND CONSUMER PRODUCTS CONCERN'S PLAYTEX EUROPE DIVISION BASED IN PARIS MR NESSIM IS RESPONSIBLE FOR ALL OF THE COMPANY'S PERSONAL PRODUCTS DIVISIONS IN EUROPE 9309090163 930909 WHO'S NEWS COMTECH TELECOMMUNICATIONS CORP COMTECH TELECOMMUNICATIONS CORP MELVILLE NY J PRESTON WINDUS JR WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF HIGHPOWER AMPLIFIERS SATELLITE AND TELECOMMUNICATIONS PRODUCTS MR WINDUS 50 YEARS OLD SUCCEEDS GERARD R NOCITA WHO IS RETIRING MR WINDUS WAS PRESIDENT AND CHIEF OPERATING OFFICER AT FAIRCHILD DATA CORP A SUBSIDIARY OF FAIRCHILD CORP 9309090162 930909 WHO'S NEWS ORYX ENERGY CO ORYX ENERGY CO DALLAS WILLIAM E BRADFORD WAS NAMED TO THE BOARD OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR BRADFORD 58 YEARS OLD IS PRESIDENT AND CHIEF OPERATING OFFICER OF DRESSER INDUSTRIES INC HIS APPOINTMENT EFFECTIVE NOV 1 INCREASES THE BOARD TO 10 MEMBERS 9309090161 930909 FINANCING BUSINESS ARMANINO FOODS OF DISTINCTION INC ARMANINO FOODS OF DISTINCTION INC SOUTH SAN FRANCISCO CALIF SAID IT EXTENDED THE EXPIRATION DATE OF ITS OUTSTANDING COMMON STOCK PURCHASE WARRANTS BY TWO YEARS THE WARRANTS WILL BE EXERCISABLE AT ANY TIME UNTIL SEPT 18 1995 AT 150 A SHARE THE COMPANY IS A SPECIALTY FOODS CONCERN 9309090160 930909 LETTERS TO THE EDITOR TOP JOB MARKET YOUR AUG 26 ASIDES WORTH EXAMINING DESCRIBED THE PROJECTED DOUBLEDIGIT PERCENTAGE GROWTH AMONG SUPERVISORY AND REGULATORY PERSONNEL AT THE FDIC IN THE NEXT YEAR YOUR REACTION WAS IN A NEW SENSE BANKS ARE STILL WHERE THE MONEY IS MY REACTION IS IN A CONTINUING SENSE GOVERNMENT EMPLOYMENT IS STILL WHERE THE GREATEST JOB GROWTH IS 9309090159 930909 UNILEVER TO ACQUIRE ICE CREAM BUSINESS OWNED BY KRAFT UNIT OF PHILIP MORRIS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL UNILEVER NV AGREED TO BUY THE ICE CREAM BUSINESS OF PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT A MOVE THAT WOULD MAKE THE ANGLODUTCH CONSUMERPRODUCTS COMPANY THE BIGGEST PLAYER IN THE 3 BILLION US ICE CREAM MARKET ALTHOUGH TERMS OF THE AGREEMENT WEREN'T DISCLOSED ANALYSTS ESTIMATED THE PURCHASE PRICE AT 215 MILLION THE UNIT WHICH INCLUDES THE SEALTEST AND BREYERS BRANDS HAD SALES OF NEARLY 500 MILLION LAST YEAR THOUGH IT IS THE LARGEST ICE CREAM MARKETER IN THE US WITH AN ESTIMATED 15 SHARE OF THE HIGHLY FRAGMENTED MARKET ANALYSTS SAID PROFIT MARGINS ARE LOW MOREOVER THE SEALTEST AND BREYERS BRANDS HAVE SUFFERED IN A HIGHLY COMPETITIVE MARKET ANALYSTS SAID SEPARATELY PHILIP MORRIS ANNOUNCED A REORGANIZATION THAT MERGES ITS TWO EUROPEAN FOOD UNITS KRAFT GENERAL FOODS EUROPE AND JACOBS SUCHARD WITH HEADQUARTERS IN ZURICH THE RESULTING COMPANY KRAFT JACOBS SUCHARD WILL HAVE REVENUE OF 9 BILLION PHILIP MORRIS SAID THE CONSOLIDATIONS WILL TAKE PLACE OVER THE NEXT FEW MONTHS THE UNILEVER PURCHASE IS THE LATEST OF A RECENT WAVE OF ACQUISITIONS IN THE FOOD INDUSTRY AS COMPANIES SEARCH FOR NEW WAYS TO GROW AND STRENGTHEN THEIR MARKET SHARES UNDER SLUGGISH CONDITIONS BOTH IN THE US AND OVERSEAS THERE'S A TRADING OF ASSETS GOING ON SAID ROBERT CUMMINS OF WERTHEIM SCHRODER & CO COMPANIES ARE FIGURING OUT WHICH AREAS MAKE MORE SENSE AS A SOURCE OF FUNDS FOR UNILEVER WHICH ALREADY IS THE ICE CREAM MARKET LEADER IN EUROPE THE PURCHASE REPRESENTS ITS LATEST AND MOST AMBITIOUS FORAY INTO THE US ICE CREAM BUSINESS EARLIER THIS YEAR UNILEVER SNAPPED UP THE KLONDIKE AND POPSICLE BRANDS FROM EMPIRE OF CAROLINA INC FOR 155 MILLION THE BRANDS WERE ADDED TO UNILEVER'S GOOD HUMOR LINE ANALYSTS SAID UNILEVER IS MORE LIKELY THAN PHILIP MORRIS TO MAKE THE INVESTMENTS NECESSARY TO BOOST THE US MARKET SHARE OF SEALTEST AND BREYERS ICE CREAM IS ONE OF UNILEVER'S MOST SUCCESSFUL FOOD AREAS SAID MICHAEL LANDYMORE ANALYST AT HENDERSON CROSTHWAITE IN THE UK HE ESTIMATED THAT ICE CREAM ACCOUNTS FOR 30 OF UNILEVER'S FOOD PROFITS WHICH TOTALED 19 BILLION LAST YEAR THEIR APPROACH IN EUROPE IS VERY MUCH IN THE TOP END WITH MARGINS IN THE DOUBLE DIGITS ADDED MARK DUFFY OF SG WARBURG & CO THEY'RE OBVIOUSLY LOOKING TO DO THE SAME IN THE US UNILEVER WILL NEED MARKETING MUSCLE TO BOOST PROSPECTS FOR THE BREYERS AND SEALTEST BRANDS BOTH HAVE BEEN HURT BY UPSCALE COMPETITORS SUCH AS BEN & JERRY'S ON THE HIGH END OF THE MARKET AS WELL AS LOWPRICED PRIVATE LABEL COMPETITION ON THE OTHER END BOTH BRANDS' MARKET SHARES HAVE STAGNATED IN RECENT YEARS AND ANALYSTS SAY PROFIT MARGINS REMAIN IN THE LOW SINGLEDIGITS ACCORDING TO JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC KRAFT GENERAL FOODS WAS HESITANT TO INVEST AN EXPENSIVE STOREDOOR DISTRIBUTION SYSTEM THAT WOULD HAVE HELPED ITS BRANDS COMPETE AGAINST FANCIER RIVALS KRAFT GENERAL FOODS IS ON A BIG CAMPAIGN TO IMPROVE THEIR RETURNS IN THE FOOD BUSINESS AND THIS WOULD HAVE REQUIRED HEAVY CAPITAL SPENDING MR MCMILLIN SAID THEY HAVE SO MANY OTHER FISH TO FRY LAWRENCE ADELMAN AN ANALYST AT DEAN WITTER REYNOLDS INC ADDED THAT THE TOBACCO AND FOOD COMPANY IS TRYING TO IMPROVE ITS RETURN ON ASSETS BY SELLING MARGINAL PERFORMERS THEY ARE GETTING OUT OF SOME BUSINESSES WITH LOWER RETURN HE SAID LAST MONTH FOR INSTANCE PHILIP MORRIS'S MILLER BREWING CO UNIT SOLD ITS BEER CAN BUSINESS TO REYNOLDS METALS CO FOR AN ESTIMATED 100 MILLION TO 250 MILLION MR ADELMAN SAID PHILIP MORRIS ALSO CONSOLIDATED ITS EUROPEAN OPERATIONS AS PART OF A COMPANYWIDE PROGRAM TO CRUNCH DOWN COSTS PHILIP MORRIS DECLINED TO ELABORATE ON THE REASONS FOR THE SALE SAYING IT WASN'T PART OF ANY LARGER STRATEGY A SPOKESMAN SAID THE COMPANY RECEIVED AN UNSOLICITED OFFER FROM UNILEVER AND WE FELT A SHAREHOLDER RESPONSIBILITY TO PURSUE IT UNILEVER SAID IT ALSO WILL ACQUIRE THE LICENSE TO USE THE LIGHT 'N' LIVELY AND KNUDSEN BRAND NAMES ON ICE CREAM PRODUCTS KRAFT GENERAL FOODS WILL RETAIN A LICENSE TO USE THE BREYERS AND SEALTEST BRAND NAMES ON EXISTING NONICE CREAM PRODUCTS THE ACQUISITION WHICH IS SUBJECT TO REGULATORY AND OTHER APPROVALS IS EXPECTED TO BE COMPLETED IN MIDOCTOBER 9309090158 930909 PEPPERAND SALT MAGNETIZE ME EVER HEARD SO WHY DOES THIS GUY ADVERTISE 9309090157 930909 TIDEWATER RETIRES DEBT EARLY NEW ORLEANS TIDEWATER INC SAID IT RETIRED EARLY ALL 511 MILLION OF ITS SENIOR DEBT RESULTING IN A ONETIME CHARGE OF 45 MILLION TIDEWATER WHICH OWNS AND OPERATES A FLEET OF VESSELS THAT SERVICE THE OIL INDUSTRY SAID THAT ITS CURRENT DEBT TO TOTAL CAPITALIZATION STANDS AT 85 THE ACTION FOLLOWS THE COMPANY'S STRATEGY OF REDUCING UNNEEDED DEBT THEREBY INCREASING FUTURE CASH FLOW AND STRENGTHENING OUR BALANCE SHEET SAID JOHN LABORDE CHAIRMAN 9309090156 930909 MEGAFOODS MAY TERMINATE PACT MESA ARIZ MEGAFOODS STORES INC SAID IT PLANS TO EXERCISE ITS OPTION TO TERMINATE ITS SUPPLY AGREEMENT WITH ITS PRINCIPAL INVENTORY SUPPLIER FLEMING COS MEGAFOODS SAID IN A NEWS RELEASE THAT UNLESS FLEMING EXERCISES ITS RIGHT TO CONTINUE TO SUPPLY MEGAFOODS AT A COST EQUAL TO THAT OF THE PROPOSED NEW SUPPLIER THE NOTICE OF TERMINATION WILL BECOME EFFECTIVE IN MIDDECEMBER MEGAFOODS SAID THAT UPON TERMINATION OF ITS SUPPLY AGREEMENT WITH FLEMING IT WILL BEGIN PURCHASING THE BULK OF ITS INVENTORY THROUGH SAFEWAY INC'S TEMPE ARIZ WAREHOUSE 9309090155 930909 ESYSTEMS GETS AIRCRAFT ORDER DALLAS ESYSTEMS INC SAID IT RECEIVED 705 MILLION IN OPTIONS AS PART OF A PREVIOUSLY AWARDED CONTRACT FROM THE FEDERAL AVIATION ADMINISTRATION THE DEFENSE ELECTRONICS CONCERN SAID THE OPTIONS CALL FOR THREE ADDITIONAL AIRCRAFT TO BE DELIVERED TO THE AGENCY WHICH IS UPGRADING ITS FLIGHT INSPECTION FLEET THE FAA CONTRACT AWARDED IN JANUARY IS WORTH MORE THAN 400 MILLION FOR ESYSTEMS IF ALL THE OPTIONS ARE EXERCISED THE DEAL INCLUDES 11 ADDITIONAL AIRCRAFT AND ASSOCIATED SUPPORT SYSTEMS 9309090154 930909 PENNSYLVANIA TRUST ACQUISITION FORT WASHINGTON PA PENNSYLVANIA REAL ESTATE INVESTMENT TRUST SAID IT ACQUIRED A 50 INTEREST IN THE 536UNIT COUNTRYWOOD APARTMENTS IN TAMPA FLA FOR 93 MILLION THE REAL ESTATE INVESTMENT TRUST SAID IT WILL PAY 17 MILLION TO THE OWNING PARTNERSHIP AND FINANCE THE BALANCE OF THE ACQUISITION THROUGH A 69 MILLION MORTGAGE A JOINT VENTURE PARTNER WILL CONTRIBUTE 700000 THE MORTGAGE HAS AN INTEREST RATE OF 8 A TERM OF 10 YEARS AND WILL BE AMORTIZED ON A 20YEAR BASIS THE REAL ESTATE INVESTMENT TRUST ALSO SAID IT COMPLETED ITS ACQUISITION OF THE 220UNIT SHENANDOAH VILLAGE APARTMENTS IN WEST PALM BEACH FOR ABOUT 11 MILLION 9309090153 930909 BUSINESS BRIEF ANNTAYLOR STORES STOCK SLIDES 13 AFTER FORECAST OF FLAT PROFIT FOR PERIOD NEW YORK ANNTAYLOR STORES CORP SHARES PLUNGED 13 AFTER EXECUTIVES TOLD WALL STREET ANALYSTS THE COMPANY EXPECTS EARNINGS FOR ITS THIRD QUARTER TO BE FLAT A WORSE RESULT THAN SOME HAD EXPECTED AT A MEETING YESTERDAY PAUL FRANCIS ANNTAYLOR'S CHIEF FINANCIAL OFFICER TOLD ANALYSTS THAT GIVEN WEAKERTHANEXPECTED AUGUST RETAIL SALES AND CONCERNS FOR THE REST OF THE YEAR ANNTAYLOR'S EARNINGS FOR THE QUARTER ENDING OCT 31 WOULD BE ABOUT 20 CENTS TO 22 CENTS A SHARE OR IN THE LOWER END OF ANALYSTS' ESTIMATES SOME ON WALL STREET HAD FORECAST EARNINGS AS HIGH AS 28 CENTS A SHARE FOR THE QUARTER COMPARED WITH LAST YEAR'S THIRDQUARTER RESULTS OF 42 MILLION OR 20 CENTS A SHARE ON SALES OF 115 MILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ANNTAYLOR SHARES FELL 350 TO 2350 ON A VOLUME OF 204400 SHARES COMPARED WITH ITS AVERAGE DAILY VOLUME OF ABOUT 102000 SHARES ANNTAYLOR SAID FOR THE FULL YEAR IT EXPECTS EARNINGS TO BE 72 CENTS TO 76 CENTS A SHARE ALSO LOWER THAN WHAT SOME ANALYSTS HAD PREDICTED IN THE FISCAL YEAR ENDED JAN 30 1993 ANNTAYLOR HAD NET INCOME OF 59 MILLION OR 28 CENTS A SHARE AFTER A PRETAX CHARGE OF 39 MILLION ANNTAYLOR HAD PREVIOUSLY SIGNALED THAT RESULTS WERE GOING TO BE WORSE THAN EXPECTED SO THE MARKET REACTION SURPRISED SOME ANALYSTS WHO FOLLOW THE COMPANY LAST WEEK THE COMPANY REPORTED THAT SALES AT STORES OPEN AT LEAST A YEAR FELL 22 THAT LED JEFFREY EDELMAN OF CJ LAWRENCE INC LAST THURSDAY TO LOWER HIS EARNINGS ESTIMATE FOR THE COMPANY'S THIRD QUARTER TO 22 CENTS FROM 27 CENTS HE ALSO LOWERED HIS FULLYEAR ESTIMATE TO 73 CENTS FROM 78 CENTS A SHARE MR EDELMAN CALLED YESTERDAY'S STOCK SLIDE A SUBSTANTIAL OVERREACTION AFTER A NUMBER OF ANALYSTS HAD ALREADY BROUGHT THEIR NUMBERS DOWN HE ADDED MAYBE A LOT OF INVESTORS WERE ON VACATION LAST WEEK AND DIDN'T REALIZE THAT AUGUST SALES CAME IN DISAPPOINTING IN AN INTERVIEW YESTERDAY SALLY FRAME KASAKS ANNTAYLOR CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALSO CALLED THE STOCK DECLINE AN OVERREACTION BY INVESTORS WHO PLAY ON THE SIDELINES AND DON'T FOLLOW THE STOCK CLOSELY EXCEPT FOR AUGUST WHICH SHE CHARACTERIZED AS A DIFFICULT MONTH FOR MOST APPAREL RETAILERS ANNTAYLOR'S BUSINESS CONTINUES TO IMPROVE SHE SAID IN 1993 ANNTAYLOR SHOPPERS HAVE BEEN BUYING MORE APPAREL AT FULL PRICE AND THEY ARE BUYING COMPLETE OUTFITS RESULTING IN HIGHER NUMBER OF UNITS PER TRANSACTION THAN IN THE PAST MS KASAKS SAID THE 219STORE RETAILER WHICH POSTED A 53 RISE IN SAMESTORE SALES SO FAR THIS YEAR STILL EXPECTS TO MEET THE OBJECTIVES IT SET IN FEBRUARY A 5 RISE IN SAMESTORE SALES FOR ALL OF FISCAL 1993 AND GROSS MARGINS IN THE 45 TO 46 RANGE SHE SAID ANNTAYLOR HAS MADE A GREAT DEAL OF FINANCIAL PROGRESS THIS YEAR MS KASAKS NOTED WITH FISCAL SECONDQUARTER OPERATING PROFIT BEFORE A REFINANCING CHARGE OF 36 MILLION OR 16 CENTS A SHARE OR FIVE TIMES HIGHER THAN THE YEAREARLIER PERIOD 9309090152 930909 CONGRESSIONAL OFFICE SEES BUDGET DEFICIT SHRINKING LESS THAN CLINTON ESTIMATES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONGRESSIONAL BUDGET OFFICE SAID THE NEW DEFICITREDUCTION LAW WILL MAKE A SUBSTANTIAL DENT IN GOVERNMENT RED INK BUT NOT QUITE AS SUBSTANTIAL AS THE WHITE HOUSE ESTIMATES THE AGENCY ALSO WARNED THAT THE UNDERLYING TREND OF GROWING DEFICITS HASN'T BEEN REVERSED IT SAYS THAT IS PRIMARILY BECAUSE HEALTHCARE COSTS ARE PROJECTED TO KEEP RISING RAPIDLY THE TAX INCREASES AND SPENDING RESTRAINTS ENACTED LAST MONTH COUPLED WITH THE EXPECTED IMPROVEMENT IN THE ECONOMY WILL PUSH THE DEFICIT DOWN TO 200 BILLION BY 1998 THE BUDGET OFFICE SAID A SOMEWHAT MORE OPTIMISTIC REPORT ISSUED BY THE WHITE HOUSE LAST WEEK SAID THE DEFICIT WOULD BE DOWN TO 181 BILLION BY THEN WITHOUT THE LAW THE BUDGET OFFICE SAID THE 1998 DEFICIT WOULD HAVE BEEN ABOUT 343 BILLION BY THE CONGRESSIONAL BUDGET OFFICE'S ACCOUNTING THE LAW WILL REDUCE THE DEFICIT BY 4329 BILLION OVER FIVE YEARS THE WHITE HOUSE BUDGET OFFICE SAYS THE LAW WILL REDUCE THE DEFICIT BY 5048 BILLION IN PART THAT DIFFERENCE STEMS FROM DIFFERENT STARTING POINTS FOR THE FIVEYEAR CALCULATION THE POLITICAL SIGNIFICANCE OF WHICH EXCEEDS ITS ECONOMIC SIGNIFICANCE HAD THE BUDGET OFFICE USED THE WHITE HOUSE BASELINE ITS FIVEYEAR TALLY WOULD HAVE BEEN 4769 BILLION THE REMAINING GAP REFLECTS SLIGHTLY DIFFERENT FORECASTS FOR THE ECONOMY DIFFERENT ESTIMATES FOR PROVISIONS OF THE LAW AND OTHER TECHNICAL DIFFERENCES THE BUDGET OFFICE FOR INSTANCE SAYS AUCTIONING OFF PART OF THE RADIO SPECTRUM WILL BRING IN 76 BILLION OVER FIVE YEARS THE WHITE HOUSE BUDGET OFFICE EXPECTS 126 BILLION THE NEW BUDGET OFFICE REPORT SAYS THAT DESPITE THE NEW LAW THE DEFICIT WILL BEGIN WIDENING AGAIN AFTER 1998 BOTH IN DOLLAR TERMS AND IN RELATION TO THE SIZE OF THE ECONOMY SPENDING ON MEDICAID AND MEDICARE PROJECTED TO CONTINUE GROWING BY MORE THAN 10 A YEAR IS THE PRIMARY CULPRIT THE BUDGET OFFICE STUDY HOWEVER DOES NOT INCLUDE THE POSSIBLE COST SAVINGS OF PRESIDENT CLINTON'S EFFORTS TO REFORM HEALTH CARE NOR THE RECENTLY UNVEILED PLAN TO STREAMLINE THE FEDERAL GOVERNMENT ADMINISTRATION OFFICIALS SAID EARLIER THIS WEEK THAT PROPOSED SPENDING CAPS ON MEDICARE AND MEDICAID WOULD SAVE 238 BILLION IN THE FIRST FIVE YEARS THE WHITE HOUSE ALSO ESTIMATES THAT ITS PROGRAM TO MAKE GOVERNMENT MORE EFFICIENT WOULD SAVE 108 BILLION OVER FIVE YEARS THE CBO PREDICTS THE DEFICIT FOR FISCAL 1993 WHICH CLOSES AT THE END OF SEPTEMBER WILL TOTAL 266 BILLION THAT EQUALS 43 OF THE GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US BY 1998 THE DEFICIT IS PROJECTED TO FALL TO 25 OF GROSS DOMESTIC PRODUCT ROUGHLY HALF OF WHAT IT WOULD HAVE BEEN WITHOUT THE NEW LAW BUT UNLESS CONGRESS ACTS TO SLOW HEALTHCARE SPENDING THE DEFICIT WILL CLIMB TO 36 OF GROSS DOMESTIC PRODUCT BY 2003 THE BUDGET OFFICE SAID LAST YEAR'S DEFICIT WAS A RECORD 290 BILLION OR 49 OF GROSS DOMESTIC PRODUCT THE BUDGETARY DILEMMA WILL BE MADE STILL MORE ACUTE BY THE ADMINISTRATION'S DESIRE TO INCREASE ACCESS TO HEALTH INSURANCE AND HEALTH CARE REFORM THE WELFARE SYSTEM ADDRESS SUCH DOMESTIC NEEDS AS CRIME CONTROL EDUCATION AND JOB TRAINING ALL WITHOUT IMPOSING MAJOR TAX INCREASES THE REPORT SAID THE CBO'S NEW FORECAST OF THE ECONOMY IS SIMILAR TO THAT ISSUED BY THE WHITE HOUSE LAST WEEK THE BUDGET OFFICE SEES THE ECONOMY GROWING 23 AFTER INFLATION THIS YEAR AND 27 THE NEXT THE WHITE HOUSE FORECAST IS FOR 2 GROWTH THIS YEAR AND 3 THE NEXT LIKE THE WHITE HOUSE THE BUDGET OFFICE EXPECTS THE ECONOMY TO EXPAND AT ABOUT A 3 PACE FOR THE SECOND HALF OF THIS YEAR THE ECONOMIC EXPANSION HAS BECOME SELFSUSTAINING ALBEIT AT A SLUGGISH PACE THE AGENCY DECLARED 9309090151 930909 DOFASCO TO REDEEM DEBENTURES HAMILTON ONTARIO DOFASCO INC CANADA'S LARGEST STEEL PRODUCER SAID IT PLANS TO REDEEM FOUR SERIES OF DEBENTURES WITH A TOTAL PRINCIPAL VALUE OF 103 MILLION CANADIAN DOLLARS US78 MILLION DOFASCO SAID THE REDEMPTIONS TO TAKE PLACE IN OCTOBER AND NOVEMBER WILL BE FINANCED FROM THE COMPANY'S EXISTING CASH RESERVES THE COMPANY EXPECTS PRETAX SAVINGS OF BETWEEN C55 MILLION AND C6 MILLION A YEAR AS A RESULT OF THE REDEMPTIONS THE ISSUES TO BE REDEEMED ARE DOFASCO'S 10 SINKING FUND DEBENTURES MATURING JUNE 1 1994 ITS 10 7/8 SINKING FUND DEBENTURES MATURING MAY 15 1995 ITS 10 3/8 SINKING FUND DEBENTURES MATURING MARCH 15 1996 AND ITS 9 3/8 SINKING FUND DEBENTURES MATURING FEB 15 1997 9309090150 930909 ECONOMY REGULATORS SEEK TO BOOST LENDING TO SMALL BUSINESS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOPING TO BOOST CREDIT FOR SMALL BUSINESS BANK REGULATORS HAVE AGREED IN PRINCIPLE TO REDUCE THE AMOUNT OF CAPITAL THAT BANKS MUST HOLD AGAINST SMALLBUSINESS LOANS THAT THEY SELL TO THE SECONDARY MARKET THE CHANGE IS DESIGNED TO MAKE IT MORE ATTRACTIVE FOR BANKS TO MAKE SMALLBUSINESS LOANS AND SELL THEM TO THE SECONDARY MARKET JUST AS BANKS CURRENTLY SELL MORTGAGES AND CREDITCARD LOANS IN THE SECONDARY MARKET LOANS ARE POOLED AND USED AS COLLATERAL FOR SECURITIES THAT ARE SOLD TO INVESTORS THE SECONDARY MARKET FOR SMALLBUSINESS LOANS IS EMBRYONIC AND THE AGREEMENT ON CAPITAL REQUIREMENTS COULD HELP BANKS DEVELOP A MORE LIQUID MARKET FOR THESE LOANS A BILL INTRODUCED BY SEN ALFONSE D'AMATO R NY WOULD CLEAR AWAY SEVERAL LEGAL IMPEDIMENTS TO THE SECURITIZATION OF SMALLBUSINESS LOANS AND INCORPORATE THE NEW CAPITAL RULES THE BILL HAS BROAD BIPARTISAN SUPPORT ON THE SENATE BANKING COMMITTEE AND IS LIKELY TO BE GRAFTED ON TO THE CLINTON ADMINISTRATION'S PROPOSAL TO FUND COMMUNITY DEVELOPMENT INITIATIVES WHEN BANKS SELL LOANS THEY GENERALLY SELL THEM WITH RECOURSE MEANING THAT THEY ARE RESPONSIBLE FOR SOME OF THE LOSS IF THE BORROWER DEFAULTS UNDER CURRENT RULES A BANK MUST MAINTAIN CAPITAL EQUAL TO 8 OF THE ENTIRE VALUE OF A LOAN IT SELLS EVEN IF IT SELLS THE LOAN WITH PARTIAL RECOURSE AFTER NEGOTIATIONS WITH THE STAFF OF THE SENATE BANKING COMMITTEE REGULATORS HAVE AGREED THAT BANKS ONLY WILL HAVE TO HOLD CAPITAL AGAINST THE PORTION OF THE LOAN SUBJECT TO RECOURSE THUS IF A BANK SOLD A 100000 SMALLBUSINESS LOAN BUT RETAINED RESPONSIBILITY FOR LOSSES UP TO 25000 OF THAT LOAN THE BANK WOULD HAVE TO HOLD CAPITAL EQUAL TO 8 OF ONLY 25000 THE CHANGE WOULD REDUCE THE COST OF MAKING AND SELLING SMALLBUSINESS LOANS SIGNIFICANT DETAILS OF THE RULE CHANGE REMAIN TO BE WORKED OUT BY THE FEDERAL RESERVE AND THE TREASURY BUT THE GENERAL THRUST OF THE UNDERSTANDING WILL BE DISCUSSED AT A SENATE BANKING COMMITTEE HEARING TODAY AT A HEARING BEFORE THE PANEL YESTERDAY ON THE ADMINISTRATION'S COMMUNITY DEVELOPMENT PROPOSAL FRANK NEWMAN TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE SAID THAT THE ADMINISTRATION ALSO IS STUDYING WAYS TO PUMP MORE EQUITY CAPITAL INTO SMALL BUSINESSES I DON'T YET HAVE ANYTHING CONCRETE TO PROPOSE HE TOLD THE PANEL BUT THE MECHANISMS FOR MAKING SURE THAT FLOWS OF FUNDS THROUGHOUT THE COUNTRY PROVIDE EQUITY CAPITAL AS NEEDED FOR SMALL BUSINESSES NEEDS SOME ATTENTION AND WE WILL BE ADDRESSING THAT TO DATE MOST OF THE CLINTON ADMINISTRATION'S BANKING INITIATIVES HAVE BEEN DESIGNED TO SPUR LENDING TO POOR NEIGHBORHOODS AND SMALL BUSINESSESBORROWERS WHO OFTEN HAVE TROUBLE GETTING CREDIT FROM BANKS HOWEVER THE ADMINISTRATION IS WORKING ON TWO PROPOSALS THAT COULD FUNDAMENTALLY CHANGE THE STRUCTURE OF THE BANKING INDUSTRY AND THE WAY IT IS REGULATED MR NEWMAN INDICATED TO THE BANKING PANEL THAT THE ADMINISTRATION IS PREPARING TO SUPPORT A PLAN TO ALLOW BANKS TO OPERATE NATIONWIDE BRANCH NETWORKS PROPOSALS TO ALLOW INTERSTATE BRANCHING WHICH ARE STRONGLY SUPPORTED BY MOST BIG BANKS AND OPPOSED BY MANY SMALL BANKS FAILED TO PASS CONGRESS IN 1991 ALTHOUGH ADMINISTRATION OFFICIALS HAVE SUGGESTED SUPPORT FOR BRANCHING IN THE PAST THIS WAS THE FIRST PUBLIC ANNOUNCEMENT THAT THE CLINTON TEAM IS PREPARING A PROPOSAL ON THE CONTROVERSIAL ISSUE IN ADDITION THE ADMINISTRATION IS PREPARING A PROPOSAL TO CONSOLIDATE BANK REGULATORY AGENCIES AT A MINIMUM THE ADMINISTRATION IS LIKELY TO PROPOSE MERGING TWO TREASURY AGENCIES THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION BUT THE ADMINISTRATION COULD GO FURTHER AND TRY TO COMBINE REGULATORY FUNCTIONS OF THE FEDERAL DEPOSIT INSURANCE CORP AND THE FEDERAL RESERVE AS WELL TREASURY OFFICIALS SAID THEY HOPE TO ANNOUNCE A PROPOSAL BY THE END OF THE YEAR 9309090148 930909 USAIR'S AUGUST TRAFFIC ARLINGTON VA USAIR GROUP INC SAID AUGUST TRAFFIC AT ITS AIRLINE UNIT FELL 107 FROM AUGUST 1992 THE USAIR UNIT FLEW 328 BILLION REVENUE PASSENGER MILES COMPARED WITH 368 BILLION REVENUE PASSENGER MILES IN AUGUST 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE USAIR SAID THE PERCENTAGE OF SEATS OCCUPIED BY PAYING PASSENGERS LAST MONTH SANK TO 632 FROM 695 IN AUGUST 1992 TRAFFIC DURING THE FIRST EIGHT MONTHS OF THE YEAR SLIPPED 3 TO 233 BILLION REVENUE PASSENGER MILES 9309090147 930909 CREDIT MARKETS SURGING BOND MARKET SHOWING SIGNS OF FATIGUE AS FED INDICATES IT WON'T CUT SHORTTERM RATES BY CONSTANCE MITCHELL AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE POWERFUL BOND MARKET RALLY SHOWED SIGNS OF FATIGUE WITH PRICES ENDING MIXED IN HECTIC TRADING ALTHOUGH PRICES OF THE BELLWETHER 30YEAR TREASURY BOND CONTINUED TO FORGE AHEAD PRICES OF SOME SHORTTERM NOTES MOVED LOWER IN REACTION TO COMMENTS BY TWO FEDERAL RESERVE OFFICIALS BOTH SUGGESTED THE FED CURRENTLY HAS NO INTENTION OF REDUCING SHORTTERM INTEREST RATES ANY FURTHER FED CHAIRMAN ALAN GREENSPAN INDICATED ON TUESDAY THAT REAL OR INFLATIONADJUSTED SHORTTERM INTEREST RATES ARE TOO LOW HIS WRITTEN STATEMENT WAS IN RESPONSE TO QUESTIONS FROM THE SENATE BANKING COMMITTEE THEN YESTERDAY FED VICE CHAIRMAN DAVID MULLINS TOLD REUTERS THE BENEFITS OF GOING A LITTLE FURTHER ON THE FEDERAL FUNDS RATE SEEM AT BEST ONLY MARGINAL MR MULLINS SAID THE ECONOMY REMAINS ON A MODERATE GROWTH PATH THOSE COMMENTS DASHED SPECULATION THE FED SOON WOULD REDUCE SHORTTERM INTEREST RATES IN RESPONSE TO LAST WEEK'S WEAKERTHANEXPECTED AUGUST EMPLOYMENT REPORT NOW THAT ANOTHER FED EASING APPEARS REMOTE BOND INVESTORS AND TRADERS SAID THEY ARE REEVALUATING PRICES OF SHORTTERM FIXEDINCOME SECURITIES WHICH HAD BECOME SOMEWHAT EXPENSIVE RELATIVE TO OTHER SECURITIES SAID STEVE RICCHIUTO CHIEF ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES INC AFTER THE COMMENTS BY GREENSPAN AND MULLINS THE MARKET HAD TO TAKE OUT THAT EASING PREMIUM FROM THE PRICES OF SHORTTERM SECURITIES HE SAID ONE OF THE THEMES YESTERDAY WAS THAT THE SHORT END HAS GONE AS LOW AT IT CAN GO IN TERMS OF YIELD SAID ALAN LEVENSON MONEY MARKET ECONOMIST AT UBS SECURITIES INC THE TREASURY'S LATEST TWOYEAR NOTES FOR EXAMPLE ENDED AT 100 6/32 TO YIELD 376 COMPARED WITH 100 8/32 TO YIELD 373 ON TUESDAY THREEMONTH TREASURY BILLS WERE QUOTED LATE YESTERDAY AT A DISCOUNT RATE OF 296 FOR A BOND EQUIVALENT YIELD OF 300 COMPARED WITH A DISCOUNT RATE OF 294 TO YIELD 298 TUESDAY BUT WHILE PRICES OF SHORTTERM TREASURYS SUFFERED THE 30YEAR BOND CONTINUED ITS UPWARD MARCH ALBEIT AT A SLOWER PACE THAN IN THE PREVIOUS TWO TRADING SESSIONS THE BELLWETHER BOND ENDED AT A PRICE OF 105 13/32 TO YIELD 586 COMPARED WITH 104 31/32 TO YIELD 589 ON TUESDAY SINCE AUG 12 THE LAST TIME THE TREASURY AUCTIONED 30YEAR BONDS THE PRICE OF THE ISSUE HAS RISEN ABOUT 6 1/2 POINTS WHICH TRANSLATES INTO A GAIN OF 65 FOR EACH 1000 BOND MR LEVENSON SAID THAT THE 30YEAR BOND'S PERFORMANCE YESTERDAY MAY INDICATE THAT THE ISSUE ONCE AGAIN IS TRADING TO ITS OWN SPECIAL CIRCUMSTANCES AMONG THEM THE SCARCITY OF THE SECURITY AS A RESULT THE YIELD CURVE OR THE SPREAD BETWEEN THE YIELD ON SHORTTERM COMPARED WITH LONGTERM RATES WILL NARROW OR FLATTEN MR LEVENSON SAID CONTINUED DEMAND FOR THE 30YEAR BOND AS THE YEAR PROGRESSES COULD NARROW THAT SPREAD BETWEEN THE LATEST 30YEAR BOND AND THE LATEST 10YEAR NOTE TO AS LITTLE AS 020 PERCENTAGE POINT WITHIN THE NEXT SIX MONTHS YESTERDAY THAT GAP WAS ABOUT 064 PERCENTAGE POINT AS FOR THE TWOYEAR NOTE TONY CRESCENZI DIRECTOR OF FIXEDINCOME AT MILLER TABAK HIRSCH & CO SAID HE BELIEVES PRICES WILL ONLY HEAD LOWER IF DEALERS SEE SOME EVIDENCE TO SUPPORT THE VIEWS OF FEDERAL RESERVE OFFICIALS THAT THE ECONOMY IS GAINING STRENGTH WHEN WE GET SOME NEWS TO BACK UP WHAT THEY ARE SAYING THEN THE MARKET COULD GO LOWER HE SAID THAT DIDN'T HAPPEN YESTERDAY WITH THE NOON RELEASE OF THE FEDERAL RESERVE BEIGE BOOK SUMMARY OF REGIONAL ECONOMIC ACTIVITY IN LATE JULY AND AUGUST THE REPORT WHICH WILL BE USED AT THE CENTRAL BANK'S NEXT FEDERAL OPEN MARKET COMMITTEE MEETING SEPT 21 INDICATED THE US ECONOMY GREW AT A SLOW TO MODERATE PACE LITTLE CHANGED FROM THE PREVIOUS PERIOD THE MARKET DIDN'T REACT TO THE BEIGE BOOK REPORT EVEN THOUGH SOME ECONOMISTS BELIEVED THAT THE REPORT SHOWED SIGNS OF STRENGTH MANUFACTURING PRODUCTION AND SALES INCREASED IN MANY DISTRICTS FOR EXAMPLE WHILE DOUBLEDIGIT SALES INCREASES WERE NOTED FOR AUTOS AND ELECTRONIC EQUIPMENT IN ADDITION RESIDENTIAL CONSTRUCTION WAS STRONG IN MANY AREAS ESPECIALLY IN DALLAS AND MINNEAPOLIS THE FED SAID BUT SOME FIXEDINCOME MONEY MANAGERS ARE TURNING CAUTIOUS AND WORRY THAT PRICES OF LONGTERM BONDS WILL SOON FOLLOW PRICES OF SHORTTERM SECURITIES LOWER ROGER MARSHALL PRESIDENT OF RIGGS INVESTMENT MANAGEMENT CORP IN WASHINGTON SAID HIS FIRM WAS CONSIDERING YESTERDAY WHETHER TO TAKE MONEY OUT OF THE MARKET AND PUT IT IN STOCKS OR IN CASH FOR THE LATER PURCHASE OF STOCKS RIGGS INVESTMENT PREVIOUSLY HAD A BIAS TOWARD BONDS IF YOU ARE IN A BOND FUND PUTTING NEW MONEY INTO A BOND I FEEL YOU ARE GETTING A NEGATIVE RATE OF RETURN NOW MR MARSHALL SAID YOU ARE BETTER OFF BUYING STOCKS AND INVESTING IN REAL ESTATE SOMETHING THAT HAS UPSIDE A DIVERSE GROUP OF ISSUERS TAPPED THE NEWISSUE MARKET AND SOLD 288 BILLION OF SECURITIES THE LIST INCLUDED THE WORLD BANK COCACOLA ENTERPRISES NIAGARA MOHAWK POWER CIT GROUP HOLDINGS SOUTHWESTERN BELL AND MASCO SYNDICATE MANAGERS SAID MANY OF THE OFFERINGS WERE WELL RECEIVED BUT ONLY BECAUSE PRICES OF MANY NEW ISSUES WERE AT LEVELS PERCEIVED TO BE FAIR ONE SYNDICATE OFFICIAL POINTED OUT THAT JUST A FEW WEEKS AGO THERE WERE NUMEROUS CORPORATE BONDS THAT WERE PRICED AGGRESSIVELY EVEN THOUGH PRICES OF THE NEW SECURITIES WERE CONSIDERED EXPENSIVE THE RALLY IN THE TREASURY MARKET COULD BE COUNTED ON TO ENSURE SUBSEQUENT PROFITS INVESTORS ARE NOW INSISTING THAT NEW ISSUES BE PRICED AT THE MARKET AND TO PROVIDE VALUE TODAY A SIGN THAT INVESTORS DON'T BELIEVE THE RALLY IN THE BOND MARKET CAN CONTINUE THE WORLD BANK PRICED THE LARGEST DEAL OF THE DAY THE 125 BILLION OFFERING OF GLOBAL BONDS WAS PRICED AT 99401 TO YIELD 533 010 PERCENTAGE POINT ABOVE THE COMPARABLE TREASURY YIELD THE WORLD BANK DECIDED TO LAUNCH THE DEAL IN ASIA BECAUSE THAT IS WHERE THE GREATEST DEMAND WAS EXPECTED OF THE TOTAL PAPER SOLD 45 WAS PLACED IN ASIA 30 IN EUROPE AND 25 IN THE US SAID INVESTMENT BANKERS AT LEHMAN BROTHERS OF THE PAPER SOLD IN ASIA ABOUT 25 WAS PLACED IN TOKYO MUNICIPAL BONDS AGAIN PERFORMED WELL DESPITE THE RAPIDFIRE ISSUANCE OF MORE THAN 15 BILLION OF NEW SECURITIES PRICES OF ACTIVELY TRADED ISSUES CLOSED 1/8 TO 5/8 POINT HIGHER THE DAY'S BIGGEST ISSUE WAS THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 6919 MILLION SERIES 1993C REVENUE REFUNDING BONDS FOR NUCLEAR PROJECT NO 1 AND NO 3 FOLLOWING A REPRICING AT WHICH MOST YIELDS WERE LOWERED BY FIVE TO 10 BASIS POINTS YIELDS RANGED FROM 270 FOR PROJECT NO 1 AND NO 3 BONDS DUE IN 1994 TO 575 FOR PROJECT NO 3 ZEROCOUPON BONDS DUE IN 201518 THE BONDS WERE SOLD THROUGH A FIRST BOSTON CORP THE MORTGAGE SECURITIES MARKET REMAINED UNDER PRESSURE AS THE TREASURY LONGBOND RALLY CONTINUED AND EVIDENCE OF HIGHER PREPAYMENT SPEEDS ABOUNDED MEANWHILE THE ASSETBACKED MARKET AWAITED PRICING OF THE FIRSTEVER DEAL BACKED BY GENERAL MOTORS CORP CREDITCARD RECEIVABLES THE TWOPART OFFERING OF CERTIFICATES HOUSEHOLD AFFINITY CREDIT CARD MASTER TRUST 19931 WAS EXPECTED TO TOTAL ABOUT 953 MILLION A REPORT FROM FEDERAL NATIONAL MORTGAGE ASSOCIATION DETAILED THE KIND OF HIGHER PREPAYMENT RATES THAT HAVE BEEN ROILING THE MORTGAGE SECURITIES MARKET AMONG 30YEAR SECURITIES THE 7 1/2 ISSUES TOOK THE WORST HIT ON A CONSTANTPREPAYMENTRATE BASIS THE COUPON PREPAID ABOUT 65 FASTER IN AUGUST THAN IT DID IN JULY THE 7 ISSUES PREPAID ABOUT 40 FASTER DURING AUGUST THAN IN JULY AND THE 8 SECURITIES PREPAID ABOUT 35 FASTER 9309090146 930909 INTERNATIONAL BOUYGUES PICKED FOR AIRPORT JOB PARIS BOUYGUES SA A FRENCH CONSTRUCTION COMPANY SAID ITS CONSORTIUM WAS CHOSEN TO BUILD THE NEW PRAGUE AIRPORT IN A CONTRACT VALUED AT 120 MILLION THE CONSORTIUM PRAGUE INTERNATIONAL AIRPORT DEVELOPMENT CORP WILL BE RESPONSIBLE FOR FINANCING DESIGNING BUILDING AND MANAGING THE NEW FACILITY IN PARTNERSHIP WITH CZECH AIRPORT AUTHORITIES BOUGUES WILL HAVE A 35 STAKE IN THE CONSORTIUM WHICH ALSO INCLUDES CZECH BANK INVESTICNBANKA WITH 35 ARMBRO OF CANADA 12 BRITISH AEROSPACE PLC 6 AND SCHIPHOL AIRPORT OF THE NETHERLANDS WHICH WILL MANAGE THE NEW AIRPORT BOUYGUES SAID THE OVERALL VALUE OF THE AIRPORT PROJECT IS 200 MILLION 9309090145 930909 OHM GETS EPA CONTRACT FINDLAY OHIO OHM CORP SAID IT WON A CONTRACT FROM THE US ENVIRONMENTAL PROTECTION AGENCY VALUED AT AS MUCH AS 88 MILLION OVER FIVE YEARS THE COMPANY WILL PROVIDE EMERGENCY REMEDIATION SERVICES AT SITES IN NEW YORK NEW JERSEY PUERTO RICO AND THE VIRGIN ISLANDS WHERE THERE IS AN IMMINENT THREAT TO THE PUBLIC HEALTH OR THE ENVIRONMENT THE COMPANY SAID IT IS NEGOTIATING A SIMILAR FIVEYEAR CONTRACT WITH THE US ARMY CORPS OF ENGINEERS WITH A POTENTIAL VALUE OF 50 MILLION TO PROVIDE REMEDIATION SERVICES NATIONWIDE 9309090144 930909 SUPERCUTS EXPANDS IN NEW YORK SAN FRANCISCO SUPERCUTS INC SAID IT PLANS TO OPEN 200 NEW STORES IN THE NEW YORK AREA IN THE NEXT THREE YEARS THE NEW STORES WILL BE FINANCED THROUGH A 30 MILLION PRIVATE PLACEMENT A SPOKESWOMAN SAID SUPERCUTS A FRANCHISER OF HAIR SALONS CURRENTLY HAS 839 STORES NATIONWIDE IN OVERTHECOUNTER TRADING YESTERDAY SUPERCUTS STOCK CLOSED AT 15 A SHARE DOWN 275 OR NEARLY 16 SOME ANALYSTS LOWERED THEIR EARNINGS ESTIMATES FOR THE COMPANY CITING THE LIKELIHOOD OF HIGH STARTUP COSTS FOR THE NEW YORK STORES 9309090143 930909 ABREAST OF THE MARKET INDUSTRIALS FALL 1817 TO 358893 IN SECOND STRAIGHT DAY OF LOSSES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS EXTENDED THEIR LOSSES SLIDING FOR THE SECOND STRAIGHT DAY ON JITTERS ABOUT THE ECONOMY THE DOW JONES INDUSTRIAL AVERAGE FELL 1817 POINTS TO 358893 AFTER RECOUPING NEARLY HALF ITS LOSSES IN THE LAST HOUR STANDARD & POOR'S 500STOCK INDEX DROPPED 187 TO 45665 AND THE NASDAQ COMPOSITE INDEX FELL 862 TO 73073 AS INVESTORS DUMPED TELECOMMUNICATIONS AND HEALTHCARE STOCKS DECLINING ISSUES SWAMPED ADVANCERS 1430 TO 606 VOLUME ON THE BIG BOARD ROSE TO 278690000 SHARES FROM 229320000 SHARES TUESDAY THE HEAVY SELLING IN STOCKS CAME EVEN AS INTEREST RATES CONTINUED TO FALL HELPED IN PART BY A FEDERAL RESERVE BOARD REPORT THAT SHOWED THE ECONOMY GREW AT A SLOW TO MODERATE PACE IN LATE JULY AND AUGUST IN ITS BEIGE BOOK THE FED ALSO SAID THAT PRICES WITH THE EXCEPTION OF LUMBER POSTED LITTLE OR NO CHANGE DURING THE PERIOD THE DOWNBEAT REPORT WAS WELCOME TO BOND INVESTORS WHO THRIVE ON THE PROSPECT OF SLOW GROWTH AND LOW INFLATION BUT IT WAS YET ANOTHER SETBACK FOR STOCK BUYERS WHO HAVE BEEN HOPING THAT A PICKUP IN ECONOMIC ACTIVITY WILL BOOST CORPORATE PROFITS AND IN TURN SPAWN HIGHER EQUITY PRICES EVERYBODY KEPT WAITING FOR THE ACCELERATION OF THIS RECOVERY AND THE REALITY IS THAT THIS IS THE RECOVERY SAID MARY FARRELL STOCK STRATEGIST AT PAINEWEBBER MS FARRELL SAID INVESTORS ARE INCREASINGLY CONCERNED THAT COMPANIES ARE GOING TO HAVE A ROUGH TIME ACHIEVING STRONG GROWTH RATES WITH THE ECONOMY MOVING AT SUCH A SLUGGISH PACE BUT SHE SAID SHE THINKS THE RECENT RETRENCHMENT ISN'T INDICATIVE OF STRUCTURAL WEAKNESS IN THE MARKET SHE EXPECTS STOCK PRICES TO ADVANCE DRIVEN HIGHER IN PART BY THE CONTINUED DECLINES IN INTEREST RATES ALSO LIKELY TO HELP THE STOCK MARKET IS THE FLOOD OF MONEY INTO MUTUAL FUNDS EVEN AS STOCKS SLUMPED YESTERDAY NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT BOSTON'S FIDELITY INVESTMENTS SAID THE NATION'S LARGEST STOCK FUND CONTINUES TO SEE NET INFLOWS OF MONEY INTO ITS EQUITY FUNDS SIMILARLY AT T ROWE PRICE ASSOCIATES IN BALTIMORE CASH KEPT COMING IN YESTERDAY IT LOOKS LIKE INVESTORS ARE NOT ONLY HANGING IN BUT TO SOME EXTENT BUYING ON WEAKNESS SAID MR LITVACK OF FIDELITY NEWS OF DISAPPOINTING PREMIUM INCREASES FOR MEDICARE PATIENTS NEXT YEAR SPARKED A DRAMATIC SELLOFF OF HEALTH MAINTENANCE ORGANIZATION STOCKS ON THE NASDAQ PACIFICARE HEALTH SYSTEMS CLASS A SHARES FELL 5 3/4 TO 34 AND FHP INTERNATIONAL 2 3/4 TO 21 1/2 HUMANA LOST 7/8 TO 12 1/4 THESE COMPANIES DEPEND HEAVILY ON MEDICARE PATIENTS US HEALTHCARE ANOTHER NASDAQ STOCK ALSO LOST 2 TO 44 WHILE UNITED HEALTHCARE FELL 3 3/4 TO 56 1/2 THE SELLING SPILLED OVER INTO OTHER STOCKS RELATED TO HEALTH CARE MEDTRONIC DROPPED 1 TO 61 1/2 BECTON DICKINSON 1 1/4 TO 35 5/8 AND AMERICAN CYANAMID 7/8 TO 53 1/8 BAXTER INTERNATIONAL SKIDDED 3 3/8 TO 23 IN HEAVY TRADING THE DEERFIELD ILL HOSPITALSUPPLY AND HEALTHCARE CONCERN SAID IT WILL FREEZE HIRING AND CUT SENIOR MANAGERS' PAY AS MUCH AS 25 BECAUSE THIRDQUARTER EARNINGS ARE EXPECTED TO TRAIL THE YEAREARLIER PERIOD'S CELLULAR STOCKS WHICH HAVE RUN UP RECENTLY ALSO RETREATED ON NASDAQ LIN BROADCASTING SANK 3 TO 115 1/2 VANGUARD CELLULAR 1 TO 29 1/2 AND MCCAW CELLULAR 1/2 TO 54 3/4 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT SEVERAL INSIDERS AT MCCAW HAVE BEGUN SELLING THEIR HOLDINGS EVEN BEFORE AMERICAN TELEPHONE & TELEGRAPH COMPLETES ITS ACQUISITION OF THE COMPANY INTERNATIONAL BUSINESS MACHINES SLID 1 1/8 TO 44 3/8 IBM OFFERED A GLOOMIER OUTLOOK FOR ITS BIG MINICOMPUTER BUSINESS PREDICTING THAT ITS 1993 REVENUE WILL BE ABOUT FLAT WITH 1992 YPF SA ADDED 7/8 TO 23 1/2 IN HEAVY TRADING OPPENHEIMER INITIATED COVERAGE OF THE COMPANY WITH A BUY RATING ACCORDING TO INDIVIDUALS AT THE FIRM THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX FELL 520 POINTS TO 45108 9309090142 930909 HEARING OFFICER RECOMMENDS LORENZO BE DENIED PERMISSION TO LAUNCH AIRLINE BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN ADMINISTRATIVE LAW JUDGE RECOMMENDED THAT FRANK LORENZO FORMER HEAD OF TEXAS AIR CORP NOT BE PERMITTED TO START UP A LOWFARE AIRLINE IN A 63PAGE ORDER THE TRANSPORTATION DEPARTMENT LAW JUDGE CASTIGATED MR LORENZO'S NEW COMPANY ATX INC FOR DISPLAYING A PATTERN OF DISOBEYING ORDERS AND FILING FRIVOLOUS AND VEXATIOUS PLEADINGS DURING THE PROCEEDING TO DETERMINE WHETHER THE COMPANY WAS FIT TO RUN AN AIRLINE IF AS I HAVE FOUND ATX CANNOT BE TRUSTED TO COMPLY WITH THE DEPARTMENT AND JUDGE'S ORDERS DURING THE COURSE OF THIS PROCEEDING IT CERTAINLY CANNOT BE TRUSTED TO COMPLY WITH FEDERAL LAW REGULATING THE TRANSPORTATION OF PASSENGERS AND CARGO IN SCHEDULED AIR SERVICE SAID ROBERT BARTON THE ADMINISTRATIVE LAW JUDGE MR LORENZO AND OTHERS WISHING TO RESPOND TO THE RECOMMENDATION HAVE 14 DAYS TO REPLY THE ULTIMATE DECISION ON WHETHER MR LORENZO WILL BE ALLOWED TO LAUNCH THE AIRLINE WILL BE MADE BY DEPARTMENT OFFICIALS MR LORENZO WANTS TO START A LOWFARE NOFRILLS AIRLINE BASED IN BALTIMORE OR WASHINGTON TO SERVE EAST COAST LOCATIONS A SPOKESMAN FOR ATX SAID THAT MR BARTON'S ACTION WAS FUNDAMENTALLY AND THOROUGHLY WRONG AND THAT THE COMPANY IS CONFIDENT THE TRANSPORTATION DEPARTMENT WON'T FOLLOW THE RECOMMENDATION THE DECISION IS A BIG VICTORY FOR MR LORENZO'S IMPLACABLE OPPONENTS THE AIR LINE PILOTS ASSOCIATION AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS WHICH ARE URGING THE REJECTION OF MR LORENZO'S APPLICATION THE UNIONS BLAME MR LORENZO FOR ABROGATING LABOR CONTRACTS AT CONTINENTAL AIRLINES AND FOR TAKING STEPS THAT RESULTED IN THE PERMANENT SHUTDOWN OF EASTERN AIRLINES IN 1991 MR LORENZO CONTENDS THAT ECONOMIC CONDITIONS HURT CONTINENTAL AND THAT A LABOR STRIKE SENT EASTERN DOWN THE PATH TO DESTRUCTION BOTH EASTERN AND CONTINENTAL WERE UNITS OF TEXAS AIR MR BARTON SAID ATX SHOWED IT POSSESSES ENOUGH FINANCIAL BACKING FOR THE NEW AIRLINE AND THAT THE COMPANY'S OFFICERS HAVE THE MANAGEMENT SKILLS NEEDED TO RUN A CARRIER BUT HE SAID THAT MR LORENZO WAS FREQUENTLY ARGUMENTATIVE AND FAILED TO ANSWER QUESTIONS DURING THE PROCEEDING AND THAT ATX DIDN'T PRODUCE DOCUMENTS IN A TIMELY WAY WHEN ORDERED JAMES LINSEY AN ATTORNEY REPRESENTING THE AIR LINE PILOTS ASSOCIATION HAILED YESTERDAY'S ACTION SAYING THIS SHOULD BE READ AS A MUCH BROADER SIGNAL THAT THERE'S AGAIN A LEVEL PLAYING FIELD IN THIS BUSINESS 9309090141 930909 WESTINGHOUSE DEBT REDEMPTION PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT WILL REDEEM AT PAR VALUE 100 MILLION OF OUTSTANDING 8375 SENIOR NOTES DUE MARCH 1 1996 AND THE REMAINING 45 MILLION OF OUTSTANDING 760 DEBENTURES DUE OCT 15 1997 WESTINGHOUSE SAID IT IS USING SOME PROCEEDS FROM ITS 600 MILLION BOND OFFERING TO REDEEM THIS RELATIVELY EXPENSIVE DEBT THE REDEMPTION DATE FOR BOTH ISSUES WILL BE OCT 8 THE NOTES AND DEBENTURES WHICH ARE LISTED ON THE NEW YORK STOCK EXCHANGE WERE ISSUED INITIALLY BY WESTINGHOUSE CREDIT CORP AND THEN ASSUMED BY WESTINGHOUSE ELECTRIC CORP IN A MERGER WITH WCC MAY 3 9309090140 930909 CONTINENTAL'S AUGUST TRAFFIC FELL THE AIRLINE FLEW 43 BILLION REVENUE PASSENGER MILES COMPARED WITH 45 BILLION LAST AUGUST A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ALSO FELL TO 698 FROM 727 FOR THE FIRST EIGHT MONTHS OF THE YEAR CONTINENTAL'S TRAFFIC DECREASED SLIGHTLY TO 292 BILLION REVENUE PASSENGER MILES FROM 295 BILLION FOR THE 1992 PERIOD LOAD FACTOR FELL TO 636 FROM 649 9309090139 930909 FINANCING BUSINESS OMNICARE INC OMNICARE INC CINCINNATI SAID IT FILED FOR A 50 PUBLIC OFFERING OF CONVERTIBLE SUBORDINATED NOTES DUE 2003 PROCEEDS WOULD BE USED TO PAY DOWN DEBT UNDER OMNICARE'S REVOLVING BANK CREDIT FACILITY TO MAKE ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES FIRST BOSTON CORP MONTGOMERY SECURITIES AND WILLIAM BLAIR & CO WILL BE UNDERWRITERS 9309090138 930909 BIG BOARD SEAT SOLD FOR 775000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 775000 UP 25000 FROM THE PREVIOUS SALE AUG 9 SEATS ARE CURRENTLY QUOTED AT 700000 BID AND 1 MILLION OFFERED 9309090137 930909 MARKETING & MEDIA JC PENNEY ADOPTS SALES TARGETING OF MINORITY BUYERS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL PLANO TEXAS JC PENNEY CO SAID IT IS TARGETING AFRICANAMERICAN AND HISPANIC CUSTOMERS IN CERTAIN MARKETS BY CARRYING A WIDER RANGE OF GOODS MEN'S WOMEN'S AND CHILDREN'S APPAREL AND HOME FURNISHINGS THAT ITS RESEARCH SHOWS SHOULD APPEAL TO THOSE CUSTOMERS PENNEY LIKE MANY OTHER DEPARTMENT CHAINS HAS LONG VARIED SOME OF ITS SELECTION ACCORDING TO THE CUSTOMER BASE AROUND SPECIFIC STORES THIS LATEST MOVE THOUGH REPRESENTS A MORE SPECIFICALLY TARGETED EFFORT CARRIED OUT IN CONJUNCTION WITH SUPPLIERS WHO CAN PROVIDE GOODS SUCH AS PARTICULAR TYPES OF MAKEUP PREFERRED BY MINORITY CUSTOMERS A SPOKESMAN SAID THE DEVELOPMENT REPORTED YESTERDAY IN THE DALLAS MORNING NEWS WILL PUT NEW ETHNICALLY TARGETED GOODS IN 170 SUBURBAN AND URBAN STORES THIS MONTH WHILE PENNEY WASN'T THE FIRST RETAILER TO MAKE SUCH MOVES ANALYSTS SAY IT HAS BEEN AHEAD OF MOST COMPETITORS IN CATERING TO MINORITY CUSTOMERS TWO YEARS AGO PENNEY EXPERIMENTED WITH SPECIALTY SHOPS OPENED FOR THE HOLIDAY SEASON IN A SMALL NUMBER OF STORES CARRYING LARGELY IMPORTED GOODS FROM AFRICA A SPOKESMAN SAID THE EFFORT ENDED IN 1992 BECAUSE OF THE DIFFICULTIES OF GETTING GOODS FROM AFRICA IN SUFFICIENT QUANTITIES GERALDA MILLER PENNEY SPECIAL SEGMENTS MANAGER FOR WOMEN'S APPAREL SAID THAT A YEARLONG STUDY OF EIGHT MARKETS ACROSS THE COUNTRY LED THE COMPANY TO BELIEVE ITS MINORITY CUSTOMERS HAD DIFFERENT NEEDS AND WANTS WHILE THAT LED TO CARRYING SOME SPECIALITY ITEMS SOME OF THE CHANGES SHE SAID WERE AS SIMPLE AS CARRYING FEWER PASTELS AND BRIGHTER COLORS IN WOMEN'S FASHION AND CARRYING DIFFERENT SIZES MEXICANAMERICAN MEN FOR EXAMPLE TEND TO NEED SHORTER INSEAMS THAN AVERAGE WHILE AFRICANAMERICAN MEN OFTEN NEED LONGER INSEAMS AND SMALLER WAIST SIZES SHE SAID OTHER RETAILERS SUCH AS DAYTON HUDSON CORP AND WOOLWORTH CORP AND WALMART STORES INC ALSO VARY THEIR MIX OF GOODS TO APPEAL TO MINORITY CUSTOMERS IN CERTAIN AREAS WALMART FOR EXAMPLE CARRIES GIRL'S COMMUNION DRESSES IN CERTAIN PARTS OF FLORIDA WHERE THERE'S A LARGE CATHOLIC HISPANIC POPULATION DAYTON HUDSON WHICH CARRIES ETHNICORIENTED GOODS IN SEVERAL OF ITS STORE CHAINS LAST YEAR LAUNCHED AFROCENTRIC SPECIALTY BOUTIQUES IN ITS HUDSON'S DIVISION STORES 9309090136 930909 LUFTHANSA VARIG COMPLETE FRANKFURT GERMANY'S FLAG CARRIER LUFTHANSA AG AND THE BRAZILIAN AIRLINE VARIG COMPLETED A COOPERATION AGREEMENT WHICH WILL GO INTO EFFECT OCT 31 UNDER THE AGREEMENT OUTLINED IN APRIL THE TWO AIRLINES WILL USE CODESHARING BY WHICH THEY WILL SHARE PASSENGERS ON FLIGHTS BETWEEN BRAZIL AND GERMANY AND WILL INCREASE THE NUMBER OF FLIGHTS BETWEEN THE TWO COUNTRIES UNDER CODESHARING A CUSTOMER CAN BOOK A FLIGHT WITH LUFTHANSA BUT WIND UP FLYING ON A VARIG PLANE OR VICE VERSA THE PRICES THE TWO AIRLINE WILL CHARGE FOR FLIGHTS BETWEEN BRAZIL AND GERMANY WILL BE IDENTICAL 9309090135 930909 GRAND MET EXPANDS INTO CHINA LONDON GRAND METROPOLITAN PLC THE BIG BRITISH FOOD AND DRINKS CONCERN SET UP A NEW COMPANY TO SELL ITS LIQUORS THROUGHOUT CHINA INTERNATIONAL DISTILLERS CHINA WILL SET UP HEADQUARTERS IN HONG KONG AND THREE NEW REPRESENTATIVE OFFICES IN CHINA THE COMPANY ALSO IS CONSIDERING A NUMBER OF OPTIONS FOR PRODUCING ITS DRINKS IN CHINA THE COMPANY'S EXPANSION INTO CHINA IS PART OF A FORMERLY STATED STRATEGY OF INCREASING ITS PRESENCE IN THE FAR EAST GRAND MET MARKETS J&B SCOTCH WHISKY SMIRNOFF VODKA BAILEYS LIQUEURS AND OTHER PRODUCTS 9309090134 930909 CANADA WHEAT STOCKS RISE OTTAWA CANADIAN WHEAT STOCKS ROSE NEARLY 22 TO 4495 MILLION BUSHELS AT JULY 31 FROM 3699 MILLION BUSHELS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE RISE WAS ATTRIBUTED TO A DECLINE IN EXPORT SALES IN THE PAST YEAR THE WHEAT STOCKS ON FARMS AND AT VARIOUS COMMERCIAL LOCATIONS INCLUDED 753 MILLION BUSHELS OF DURUM WHEAT AT JULY 31 A 93 DECLINE FROM 83 MILLION BUSHELS A YEAR EARLIER DURUM WHEAT IS USED TO MAKE PASTA PRODUCTS STOCKS OF RAPESEED KNOWN AS CANOLA TOTALED 292 MILLION BUSHELS A 98 DECLINE FROM 324 MILLION BUSHELS A YEAR EARLIER CANOLA IS CANADA'S BIGGEST OILSEED CROP 9309090132 930909 BUSINESS BRIEF BEST PRODUCTS FILES REORGANIZATION PLAN BACKED BY CREDITORS RICHMOND VA MORE THAN 2 1/2 YEARS AFTER FILING FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE BEST PRODUCTS CO SAID IT FILED A PROPOSED PLAN OF REORGANIZATION THAT HAS THE BACKING OF MAJOR CREDITOR GROUPS THE CATALOG AND SHOWROOM RETAILER SOUGHT PROTECTION FROM CREDITORS IN JANUARY 1991 THREE YEARS AFTER A LEVERAGED BUYOUT INCREASED THE COMPANY'S DEBT BURDEN TO 137 BILLION UNDER THE PROPOSED REORGANIZATION PLAN CREDITORS WOULD DIVVY UP ABOUT 70 MILLION IN CASH AND 317 MILLION SHARES OF NEW COMMON STOCK UNDER THE PROPOSAL SENIOR UNSECURED LENDERS WOULD RECEIVE SLIGHTLY MORE THAN 50 OF THE VALUE OF THEIR CLAIMS A BEST PRODUCTS SPOKESMAN SAID TRADE VENDORS WOULD RECEIVE UP TO 48 OF THE VALUE OF THEIR CLAIMS CONTINGENT UPON AGREEMENTS TO CONTINUE SUPPLYING THE RETAILER WITH MERCHANDISE FOR A YEAR ON CREDIT TERMS ACCEPTABLE TO THE RETAILER NO PAYMENTS WOULD BE MADE TO THE LBO GROUP HEADED BY ADLER & SHAYKIN THE SPOKESMAN SAID THE ADLER & SHAYKIN GROUP PUT 85 MILLION IN EQUITY INTO THE COMPANY WE'VE HAD DISCUSSIONS WITH MANY OF THE SIGNIFICANT CREDITOR GROUPS AND RECEIVED THEIR SUPPORT SPOKESMAN ROSS RICHARDSON SAID CHEMICAL BANKING CORP THE LARGEST SINGLE CREDITOR DECLINED COMMENT YESTERDAY BEST PRODUCTS CONFIRMED THAT AT LEAST ONE INDIVIDUAL CREDITOR WHO BOUGHT MORE THAN 50 MILLION IN TRADE CLAIMS FOLLOWING THE BANKRUPTCY FILING OPPOSES THE PLAN THE COMPANY IS CONTINUING TO SUE SOME FINANCIAL INSTITUTIONS THAT PROVIDED SENIOR DEBT FINANCING AND IS CHALLENGING PAYMENTS MADE TO EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A UNIT OF EQUITABLE COS IN THE THREE MONTHS BEFORE THE BANKRUPTCY FILING SETTLEMENTS COULD BOOST THE PAYOUT TO CREDITORS THE PROPOSAL WOULD LEAVE BEST WITH 132 MILLION IN LONGTERM DEBT TO BE HELD BY SECURED CREDITOS AND 100 MILLION OF CAPITALIZED LEASES 9309090130 930909 WHO'S NEWS JACK HENRY & ASSOCIATES INC JACK HENRY & ASSOCIATES INC MONETT MO WILLIAM W CARAWAY 42 YEARS OLD VICE PRESIDENT OF MARKETING WAS NAMED A DIRECTOR OF THIS PROVIDER OF COMPUTER SYSTEMS FOR BANKS THE APPOINTMENT EXPANDS THE BOARD TO EIGHT MEMBERS 9309090129 930909 INTERNATIONAL JAPAN OPENS DOOR A BIT ON CONSTRUCTION BIDDING TOKYO JAPAN'S CONSTRUCTION MINISTRY DECIDED TO WIDEN THE FIELD OF CONSTRUCTION COMPANIES IT ALLOWS TO BID ON PUBLIC WORKS PROJECTS BUT THE MINISTRY'S NEW SYSTEM IS SHORT OF THE COMPLETELY OPEN ONE US OFFICIALS HAVE DEMANDED IN PAST NEGOTIATIONS AS A WAY OF ENDING THE DANGO OR BIDRIGGING PRACTICES SAID TO BE RAMPANT IN JAPAN'S CONSTRUCTION MARKET UNTIL NOW ONLY 10 DESIGNATED CONTRACTORS COULD BID ON A GIVEN PUBLIC WORKS PROJECT ORDERED BY THE CENTRAL GOVERNMENT THE DESIGNATED COMPANIES OFTEN GET TOGETHER BEFORE PLACING BIDS AND COME TO AN UNDERSTANDING OF WHO WILL GET THE CONTRACT BUT UNDER THE NEW SYSTEM SPECIFIC BIDDERS WILL NO LONGER BE DESIGNATED AND ANY COMPANY THAT HAS DONE A PUBLIC WORKS PROJECT VALUED AT 500 MILLION YEN 48 MILLION OR MORE CAN BID BUT CONTRACTORS ALSO MUST HAVE RECENT EXPERIENCE WITH PROJECTS SIMILAR TO THE ONE BEING BID ON THE MINISTRY CONCEDES THAT THE NEW REQUIREMENTS WILL STILL LIMIT THE FIELD TO ABOUT 30 COMPANIES IF A COMPLETELY OPEN BIDDING SYSTEM WERE INTRODUCED IT WOULD ALLOW FIRMS WITH LITTLE EXPERIENCE TO WIN SAID TOSHIO KUTSUKAKE OF THE MINISTRY'S CONSTRUCTION CONTRACTORS DIVISION MR KUTSUKAKE SAID THE NEW BIDDING SYSTEM WILL BE LIMITED TO LARGESCALE PROJECTS OF ONE BILLION YEN OR MORE FOR THE TIME BEING 9309090128 930909 INDIA'S SECURITIES SCANDAL RATTLES THE MARKET AGAIN NEW DELHI THE GHOST OF LAST YEAR'S 128 BILLION SECURITIES SCANDAL IN INDIA STILL HAUNTS THE STOCK MARKET SHARES ARE DOWN SINCE THE BEGINNING OF THE MONTH AS THE MARKET REACTS TO NEWS THAT TAX AUTHORITIES ARE LOOKING INTO TRANSACTIONS ALLEGEDLY INVOLVING BROKERS IMPLICATED IN THE SCANDAL THE BOMBAY SENSITIVE INDEX CLOSED YESTERDAY AT 258024 SLIGHTLY HIGHER THAN TUESDAY'S 253353 CLOSE BUT BELOW A WEEKEARLIER 263379 AND DOWN MORE THAN 4 FROM THE AUGUST PEAK OF AROUND 2700 ON MONDAY TAX AUTHORITIES SAID THEY HAD ATTACHED OR SEIZED SHARES IN NINE PROMINENT INDIAN COMPANIES HANDLED BY BROKERS AND OTHERS IMPLICATED IN THE SECURITIES SCANDAL THE ACTION APPARENTLY WAS PROMPTED BY SUSPICIONS THAT BROKERS ACCUSED IN THE SCANDAL WHOSE ASSETS WERE SEIZED BY AN OFFICIAL CUSTODIAN LAST YEAR HAVE RETURNED TO THE MARKET BY USING OTHERS TO FRONT FOR THEM PENDING LEGAL PROCEEDINGS THE GOVERNMENT IS HOLDING THE SEIZED ASSETS TO MEET CLAIMS THAT MIGHT ARISE AGAINST THE BROKERS THE MOVE WORRIED INVESTORS THAT THEY MIGHT HAVE ACQUIRED SHARES THROUGH BROKERS NAMED ON A LIST CIRCULATED BY AUTHORITIES INVESTORS AND OTHERS FEAR THAT THE SHARES MIGHT BE TAINTED BY ASSOCIATION AND THUS HAVE TO BE SURRENDERED TO THE OFFICIAL CUSTODIAN AT THE MOMENT NO ONE KNOWS WHO'S STUCK WITH SUCH SHARES SAID AN OFFICIAL AT JARDINE FLEMING INDIA SECURITIES A FINANCE MINISTRY SPOKESMAN SAID THE GOVERNMENT INTENDS TO ACT QUICKLY TO SORT OUT THE MATTER 9309090127 930909 CPC MCCORMICK SET EUROPE SPICE VENTURE WITH A DUTCH BANK ENGLEWOOD CLIFFS NJ CPC INTERNATIONAL INC MCCORMICK & CO OF SPARKS MD AND RABOBANK NEDERLAND SAID THEY AGREED TO FORM A VENTURE TO OPERATE A HERB AND SPICE BUSINESS IN EUROPE THE NEW VENTURE EUROPEAN SPICE PARTNERS BV WILL INCLUDE CPC'S RETAIL AND INSTITUTIONAL HERB AND SPICE BUSINESS IN GERMANY AND IRELAND MCCORMICK WILL CONTRIBUTE ITS RETAIL AND INSTITUTIONAL SPICE AND HERB BUSINESS IN BRITAIN SWITZERLAND AND GERMANY AS WELL AS LICENSING ARRANGEMENTS IN FINLAND AND SPAIN THE VENTURE WITH ESTIMATED COMBINED ANNUAL SALES OF MORE THAN 200 MILLION STILL REQUIRES THE APPROVAL OF THE COMMISSION OF THE EUROPEAN COMMUNITIES UNDER ITS MERGER REGULATIONS THE VENTURE PLANS TO BUY KARL OSTMANN GMBH & CO A GERMAN HERB AND SPICE CONCERN WITH ESTIMATED ANNUAL SALES OF ABOUT 90 MILLION IF THE MERGER IS APPROVED THIS IS AN EXCITING COMBINATION THAT PROVIDES BOTH US COMPANIES WITH GOOD PANEUROPEAN POSITIONS SAID JOHN MCMILLIN A FOOD ANALYST WITH PRUDENTIAL SECURITIES THE JOINT VENTURE MAKES A LOT OF SENSE CPC HAS STRONG RETAIL DISTRIBUTION EXPERIENCE AND MCCORMICK HAS GOOD KNOWLEDGE ABOUT THE SPICE BUSINESS CPC AND MCCORMICK WILL EACH HAVE A 375 STAKE IN EUROPEAN SPICE PARTNERS RABOBANK NEDERLAND A DUTCH BANK WILL OWN 25 NONE OF THE OTHER EUROPEAN OPERATIONS OF CPC OR MCCORMICK WILL BE INCLUDED IN THE VENTURE 9309090126 930909 INTERNATIONAL GERMAN GROUP WANTS SEOUL TO RECONSIDER RAIL CONTRACT AWARD SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA A GERMAN CONSORTIUM SAID IT WOULD ASK SOUTH KOREA TO DISCLOSE DETAILS ON ITS EVALUATION PROCESS AND TO RETHINK THE BIDDING ON A 137 BILLION HIGHSPEED RAILROAD PROJECT THE PROJECT WAS AWARDED IN LATE AUGUST TO A FRENCH TEAM SURPRISING THE GERMAN CONSORTIUM LED BY SIEMENS AG SOUTH KOREAN OFFICIALS DECLINED TO COMMENT WE CANNOT AGREE WITH THE DECISION TO GIVE TOP PRIORITY TO GEC ALSTHOM NV OF FRANCE AS FINAL NEGOTIATOR THE GERMAN CONSORTIUM SAID IN A STATEMENT THE RAIL SYSTEM HAS BEEN ONE OF SOUTH KOREA'S MOST CONTROVERSIAL AND HOTLY CONTESTED PROJECTS WITH GERMANY AND FRANCE ENGAGED IN YEARS OF PREPARATIONS IN CHOOSING ALSTHOM ON AUG 20 SOUTH KOREA SAID THE FRENCH GROUP OFFERED BETTER CONDITIONS IN LOANS MANAGEMENT EXPERIENCE ECONOMIC EFFICIENCIES TECHNOLOGY AND COSTS SOUTH KOREAN OFFICIALS SAID THE FRENCH PRICE OF 23 BILLION FOR TRAINS AND SUPPLEMENTARY EQUIPMENT WAS SLIGHTLY LOWER THAN SIEMENS'S BUT SIEMENS CLAIMED IT HAD UNDERBID ALSTHOM WE ALSO OFFERED BETTER CONDITIONS IN TECHNOLOGY AND ITS TRANSFER THE GERMAN GROUP SAID 9309090124 930909 HONDA DEBT FACES POSSIBLE DOWNGRADE DUE TO WEAK SALES NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT MAY LOWER ITS LONGTERM DEBT AND COMMERCIAL PAPER RATINGS OF JAPAN'S HONDA MOTOR CO AND SOME OF ITS UNITS BECAUSE OF WEAK SALES IN NORTH AMERICA AND JAPAN MOODY'S SAID THE RATING REVIEW WILL COVER ABOUT 25 BILLION OF DEBT SECURITIES IT WILL FOCUS ON THE CAR MAKER'S ABILITY TO REBUILD ITS EARNINGS AND REPAY DEBT WHICH HAVE BEEN ERODED BY SLOW DEMAND IN JAPAN AND SHRINKING MARKET SHARE IN NORTH AMERICA THE REVIEW ALSO WILL CONSIDER HONDA'S ABILITY TO TRANSFER PRODUCTION TO ITS NORTH AMERICAN AND EUROPEAN FACILITIES TO OFFSET THE STRONGER YEN WHICH HAS ERODED THE CAR MAKER'S COMPETITIVENESS IN OVERSEAS MARKETS IN ADDITION THE RATING AGENCY WILL ASSESS THE OUTLOOK FOR HONDA'S NEW PRODUCT INTRODUCTIONS AND ITS CHANCES OF RENEWING ITS REPUTATION FOR INNOVATION WHICH HAS SLIPPED WITH MARKET SHARE IN PAST YEARS A MOODY'S SPOKESMAN SAID AMONG THE RATINGS THAT MAY BE AFFECTED ARE HONDA'S SINGLEA1 EUROBOND RATING AND PRIME1 RATING FOR COMMERCIAL PAPER AS WELL AS HONDA INTERNATIONAL FINANCE BV'S SINGLEA1 RATING FOR MEDIUMTERM NOTES AND PRIME1 RATING FOR COMMERCIAL PAPER THE REVIEW ALSO MAY AFFECT AMERICAN HONDA MOTOR CO'S PRIME1 RATING FOR COMMERCIAL PAPER AND AMERICAN HONDA FINANCE CORP'S SINGLEA1 AND PRIME1 RATINGS FOR MEDIUMTERM NOTES AND COMMERCIAL PAPER RESPECTIVELY A SPOKESMAN FOR HONDA SAID HIS COMPANY EXPECTS IMPROVED PERFORMANCE FOLLOWING THE DEBUT OF THE NEW HONDA ACCORD TODAY WITH THAT AND OUR COSTREDUCING STRATEGIES AND EFFORTS WE ARE QUITE CONFIDENT THAT OUR EARNINGS WILL IMPROVE HE SAID THE COMPANY RECENTLY BATTLED THE RISING YEN WITH CUTS IN RESEARCH AND DEVELOPMENT AND THE REDUCTION OF MANUFACTURING COSTS HE SAID ADDING THAT HIGH LOCAL CONTENT HAS MADE FOREIGN PRODUCTION CHEAPER THAN THAT OF SOME OF HONDA'S JAPANESE COMPETITORS HONDA'S NET INCOME SLID 62 IN THE FISCAL FIRST QUARTER ENDED JUNE 30 TO ABOUT 57 MILLION 9309090123 930909 WHO'S NEWS COMMUNITY PSYCHIATRIC SAYS SHOOK RESIGNED HIS 3 EXECUTIVE POSTS LAGUNA HILLS CALIF COMMUNITY PSYCHIATRIC CENTERS SAID ITS PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR LOREN SHOOK RESIGNED AS PART OF A REORGANIZATION MR SHOOK 42 YEARS OLD WAS NAMED TO THE OPERATING POSTS 16 MONTHS AGO AFTER MANY YEARS OF STEADY RISE THROUGH MANAGEMENT RANKS HE WILL BE PURSUING OTHER INTERESTS SAID THE PSYCHIATRIC HOSPITAL CONCERN MR SHOOK WASN'T AVAILABLE TO ELABORATE EXECUTIVE VICE PRESIDENT KAY E SEIM WHO OVERSEES THE US PSYCHIATRIC HOSPITAL DIVISION WILL ASSUME MR SHOOK'S DUTIES IT HASN'T BEEN DECIDED IF A NEW PRESIDENT OR CHIEF OPERATING OFFICER WILL BE NAMED A SPOKESWOMAN SAID MR SHOOK'S DEPARTURE FROM THE BOARD REDUCES IT TO EIGHT MEMBERS COMMUNITY PSYCHIATRIC ALSO SAID IT ELIMINATED FIVE OF ITS NINE DIVISIONS THE CONSOLIDATION AFFECTS ABOUT TWO DOZEN JOBS THE SPOKESWOMAN SAID LOREN SHOOK MADE A TREMENDOUS CONTRIBUTION TO THE COMPANY'S DEVELOPMENT INTO ONE OF THE NATION'S LEADING PROVIDERS OF PSYCHIATRIC SERVICES SAID RICHARD L CONTE CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT SWEEPING CHANGES IN THE PSYCHIATRIC HOSPITAL INDUSTRY ARE FORCING PAINFUL CHANGES HE SAID AS MANAGED CARE FIRMS AND OTHER PAYER GROUPS CONTINUE TO PUT DOWNWARD PRESSURE ON PRICING AND UTILIZATION OF INPATIENT PSYCHIATRIC TREATMENT IT IS ABSOLUTELY IMPERATIVE FOR US TO CONTINUE TO STREAMLINE OUR COST STRUCTURE MR CONTE SAID COMMUNITY PSYCHIATRIC AFTER CLOSING SEVEN HOSPITALS SINCE 1991 HAS 37 HOSPITALS IN THE US AND SEVEN IN THE UK 9309090122 930909 CAMPO ELECTRONICS SALES RISE NEW ORLEANS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC SAID SAMESTORE SALES INCREASED 53 IN AUGUST TO 95 MILLION FROM 62 MILLION A YEAR EARLIER THE COMPUTER RETAILER SAID TOTAL SALES IN AUGUST MORE THAN DOUBLED TO 139 MILLION FROM 62 MILLION IT ATTRIBUTED THE SALES INCREASE TO THE OPENING OF NEW STORES AND THE ACQUISITION OF SHREVEPORT REFRIGERATION INC IN JULY SAMESTORE SALES FOR THE FISCAL YEAR ENDED AUG 31 WERE 885 MILLION UP 18 FROM 748 MILLION A YEAR EARLIER TOTAL SALES FOR THE YEAR INCREASED 36 TO 1018 MILLION FROM 748 MILLION 9309090120 930909 TECHNOLOGY JAPAN CHIP MAKERS ACT TO RAISE PRICES TO COUNTER YEN BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S THREE TOP SEMICONDUCTOR MAKERS SAID THE HIGH YEN HAS FORCED THEM TO SEEK EXPORTPRICE INCREASES OF 8 TO 18 ON MEMORY CHIPS THAT ARE A KEY ELEMENT IN MOST PERSONAL COMPUTERS NEC CORP THE WORLD'S SECONDLARGEST CHIP MAKER SAID IT IS NEGOTIATING WITH ITS US CUSTOMERS MAINLY PC MAKERS TO RAISE PRICES ON ITS POPULAR FOURMEGABIT MEMORY CHIPS BY BETWEEN 1 AND 3 OR BETWEEN 8 AND 18 NEC EXPECTS THOSE PRICE INCREASES WILL AFFECT SHIPMENTS OF MEMORY CHIPS BEGINNING IN OCTOBER TOSHIBA CORP AND HITACHI LTD SAID THEY ARE SEEKING SIMILAR MEMORYCHIP PRICE INCREASES OF 10 TO 15 WHILE US COMPUTER MAKERS PROBABLY WON'T BE HAPPY ABOUT THE MOVE ANALYSTS SAID THE PROPOSED PRICE INCREASES SEEMED REASONABLE IN LIGHT OF THE YEN'S RECENT STRENGTH AGAINST THE DOLLAR AND ARE UNLIKELY TO SLOW BOOMING US SALES OF PCS SIGNIFICANTLY AN 8 TO 18 INCREASE MAY BE RESENTED BUT IT'S NOT GOING TO BE RESENTED THE SAME WAY A 25 OR 33 INCREASE WOULD BE SAID STEVEN MYERS AN ANALYST WITH JARDINE FLEMING SECURITIES LTD IN TOKYO THE COMPANIES AREN'T GOUGING THE RISE IS CLEARLY WITHIN THE RANGE OF THE YEN'S APPRECIATION THE YEN HAS RISEN NEARLY 20 AGAINST THE DOLLAR SINCE THE BEGINNING OF THE YEAR MAKING JAPANESE EXPORTS MORE EXPENSIVE TO SELL OVERSEAS CONTINUED STRONG DEMAND FOR FOURMEGABIT CHIPS MEANS THAT THE JAPANESE COMPANIES PROBABLY WON'T LOSE MUCH MARKET SHARE AS A RESULT OF HIGHER PRICES DESPITE STRONG COMPETITION FROM KOREAN COMPANIES SUCH AS SAMSUNG ELECTRONICS CO THANKS TO THE POPULARITY OF MEMORYHUNGRY SOFTWARE AND STRONG PC SALES MEMORY CHIP MAKERS CAN'T MEET THE ACCUMULATED DEMAND FOR THEIR PRODUCTS RIGHT NOW NEC FOR INSTANCE SAYS THE CHIP INDUSTRY CAN CURRENTLY SATISFY ONLY 80 OF THE TOTAL US DEMAND FOR FOURMEGABIT CHIPS AS A RESULT HIGHER PRICES WILL PROBABLY BOOST THE SAGGING EARNINGS OF THE JAPANESE COMPANIES WHICH ARE SUFFERING FROM SIMULTANEOUS SLUMPS IN THE DOMESTIC JAPANESE ECONOMY AND MANY OF THEIR MAJOR PRODUCT LINES IN THE CURRENT DEPRESSED SITUATION THE FOURMEGABIT CHIP IS THE ONLY BRIGHT SPOT SAID SHIGERU YOSHINAKA AN ANALYST WITH BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD NEC OBVIOUSLY WANTS TO MAKE MONEY BY RAISING PRICES IF AND WHEN THE PC BOOM ENDS HOWEVER THE HIGHER PRICES COULD MAKE JAPANESE MEMORY CHIPS LESS COMPETITIVE AGAINST THEIR CHEAPER KOREAN COUNTERPARTS A SITUATION THAT WOULD FORCE THE JAPANESE COMPANIES TO SACRIFICE EITHER THEIR PROFITS OR THEIR MARKET SHARE ANALYSTS AND THE CHIP MAKERS SAID THE PRICE INCREASES AREN'T CONNECTED TO A JULY ACCIDENT AT SUMITOMO CHEMICAL CO WHERE AN EXPLOSION DESTROYED AN EPOXY RESIN FACTORY THAT MADE AN IMPORTANT CHEMICAL FOR MEMORY CHIPS SPOTMARKET PRICES OF MEMORY CHIPS CLIMBED 50 AFTER THAT ACCIDENT FUELING FEARS THAT LONGTERM CONTRACT PRICES WOULD FOLLOW SUIT SINCE THEN HOWEVER OTHER CHEMICAL MAKERS HAVE RAMPED UP PRODUCTION AND SUMITOMO CHEMICAL ANNOUNCED THAT ONE OF ITS PRODUCTION LINES WILL BE BACK IN OPERATION BY DECEMBER EASING CONCERNS ABOUT POSSIBLE MEMORYCHIP SHORTAGES LATER THIS YEAR 9309090119 930909 HEARD ON THE STREET CHRYSLER FACES BRAKING IF CANADIANS GO ON STRIKE BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL WALL STREET'S GAZE IS RIVETED UPON DETROIT WHERE THE UNITED AUTO WORKERS UNION IS NEGOTIATING A LABOR CONTRACT WITH THE BIG THREE BUT IF YOU OWN STOCK IN CHRYSLER BETTER LOOK NORTH AS WELL THE CANADIAN AUTO WORKERS UNION LAST WEEK TARGETED CHRYSLER AS THE PATTERNSETTER FOR TALKS ON A SEPARATE CANADIAN CONTRACT WHICH WOULD LATER BE PRESENTED TO FORD MOTOR'S AND GENERAL MOTORS' CANADIAN OPERATIONS AGREEMENTS IN BOTH COUNTRIES EXPIRE SEPT 14 AND AT LEAST JUDGING BY RECENT HISTORY CHRYSLER HAS A CONSIDERABLE CHANCE OF FACING A CANADIAN STRIKE THE US UNION FOR ITS PART HAS BACKED AWAY FROM GENERAL STRIKES DURING THE PAST FEW NEGOTIATIONS BUT CANADIAN AUTO WORKERS HAVE STRUCK THEIR CONTRACT TARGET FIVE TIMES IN A ROW INCLUDING A 22DAY WALKOUT AGAINST CHRYSLER IN 1982 A CANADIAN WALKOUT THIS YEAR WOULD BE PARTICULARLY BAD NEWS FOR CHRYSLER BECAUSE SOME OF ITS MOST PROFITABLE PRODUCTS ARE BUILT THERE THESE PRODUCTS INCLUDE CHRYSLER'S POPULAR NEW LH MIDSIZE CARS LARGELY BUILT IN BRAMALEA ONTARIO AND ITS SHORTWHEELBASE MINIVANS AND FULLSIZED VANS BOTH BUILT IN WINDSOR ONTARIO A WORK STOPPAGE AT THESE PLANTS WOULD COST CHRYSLER BETWEEN 39 MILLION AND 45 MILLION A WEEK OR 11 CENTS TO 13 A SHARE IN WEEKLY AFTERTAX EARNINGS ANALYSTS SAY THERE'S NO QUESTION THE FAMILY JEWELS ARE IN CANADA SAYS ANALYST SCOTT MERLIS OF MORGAN STANLEY THOUGH HE DIDN'T MAKE A SPECIFIC ESTIMATE OF HOW MUCH A STRIKE MIGHT PENALIZE EARNINGS AND THAT'S NOT THE WHOLE OF IT WITHIN A WEEK A STRIKE IN CANADA WOULD IDLE MUCH OF CHRYSLER'S US OPERATIONS TOO SEVERAL WALL STREET ANALYSTS BELIEVE THAT'S BECAUSE SEVERAL IMPORTANT PARTS ARE BUILT IN CANADA INCLUDING PISTONS FOR MANY CHRYSLER ENGINES A COMPANYWIDE CLOSING FOR CHRYSLER OF COURSE WOULD HAVE A MUCH GREATER EFFECT ON THE BOTTOM LINE THAN JUST A CANADIAN STRIKE DEAN WITTER'S RONALD GLANTZ SAYS SUCH A TOTAL SHUTDOWN WOULD LOWER CHRYSLER'S NET INCOME BY 155 MILLION A WEEK OR 44 CENTS A SHARE WEEKLY THOSE ARE BIG NUMBERS CHRYSLER WHICH EARNED 685 MILLION OR 186 A SHARE FOR THE SECOND QUARTER IS EXPECTED TO POST SEASONALLY WEAKER THIRDQUARTER RESULTS ANYWAY SEASONAL PLANT CLOSINGS FOR MODEL CHANGEOVERS MAKE THIS A NORMALLY SLOW PERIOD AND THIS YEAR THE USUAL SOFTNESS WILL BE COMPOUNDED BY A LENGTHY IDLING OF CHRYSLER'S BELVIDERE ILL PLANT TO SWITCH OVER TO THE NEON ECONOMY CAR WITHOUT ANY WORK STOPPAGE MR GLANTZ IS ESTIMATING CHRYSLER WILL EARN 270 MILLION OR 75 CENTS A SHARE FOR THE THIRD QUARTER THAT'S ABOUT A ONETHIRD INCREASE FROM 202 MILLION OR 62 CENTS A SHARE A YEAR EARLIER IF THERE ISN'T A STRIKE DAVID HEALY OF SG WARBURG FORECASTS THIRDQUARTER EARNINGS OF 250 MILLION OR 64 CENTS A SHARE FOR CHRYSLER HOW HARD WOULD A STRIKE HIT CHRYSLER'S STOCK PRICE ANALYSTS SAY THE SHARES COULD DROP A POINT OR SO BUT WOULD RECOVER QUICKLY IF THE STRIKE LASTS NO MORE THAN A WEEK A LONGER STRIKE WHICH ANALYSTS CONSIDER LESS LIKELY MIGHT HURT CHRYSLER'S STOCK PRICE FOR A WHILE LONGER DESPITE THE SITUATION IN CANADA AND THE FABULOUS RUNUP THAT CHRYSLER STOCK HAS ENJOYED FOR THE LAST TWO YEARS MANY ANALYSTS REMAIN BULLISH ON THE STOCK CHRYSLER IS STILL A GREAT LONGTERM STORY THAT'S NOT OVER BY ANY STRETCH SAYS JACK KIRNAN OF SALOMON BROTHERS MR HEALY SAYS HE IS STICKING TO HIS BUY RECOMMENDATION I THINK A STRIKE IF WE HAVE ONE IS ONLY A SHORTTERM PHENOMENON HE SAYS AS FOR MR GLANTZ HE RECKONS CHRYSLER STOCK WHICH YESTERDAY CLOSED AT 43 UP 5/8 IS A GOOD BUY UNTIL IT REACHES AT LEAST 50 A SHARE A STRIKEINDUCED DECLINE HE SAYS WOULD BE A BUYING OPPORTUNITY HE ARGUES THAT CHRYSLER'S NEW NEON WHICH MAKES ITS DEBUT EARLY NEXT YEAR SHOULD BRING CHRYSLER 1500 TO 2000 MORE PROFIT PER CAR THAN THE VEHICLES IT REPLACES AND HE BELIEVES CHRYSLER HAS ANOTHER PRODUCT HOME RUN WITH ITS NEW FULLSIZED RAM PICKUP TRUCK WHICH GOES ON SALE OCT 1 HE FIGURES IT WILL ADD 1 A SHARE TO EARNINGS NEXT YEAR THERE ARE 20 REASONS WHY IT'S A BETTER PRODUCT MR GLANTZ SAYS BUT THE MAIN REASON I LIKE IT IS THAT IF YOU WEIGH 250 POUNDS AND HAVE A BEER BELLY THERE IS MORE ROOM FOR THE SEAT TO SLIDE BACK IN THE DODGE THAN IN COMPETING TRUCKS FOR THEIR PART CHRYSLER OF CANADA OFFICIALS ARE OPTIMISTIC THAT A WALKOUT CAN BE AVERTED A SPOKESMAN NOTES THAT IN 1990 WHEN FORD WAS THE TARGET IN CANADA CHRYSLER LATER SIGNED A CONTRACT WITHOUT A STRIKE THOUGH FORD WAS STRUCK IT WAS THE FIRST ONE IN 29 YEARS THAT WE SETTLED WITHOUT A STRIKE HE SAYS WE ARE HOPEFUL WE CAN DO IT AGAIN AS FOR THE CANADIAN AUTO WORKERS THEY'VE ALREADY ENGAGED IN SOME VIGOROUS SABER RATTLING WITH THEIR INVENTORY WHERE IT'S AT AND THE POPULARITY OF THEIR MODELS WE'LL HAVE AN IMPACT ON CHRYSLER VERY SHORTLY AFTER A STRIKE IF THERE IS ONE SAID CAW PRESIDENT BUZZ HARGROVE LAST WEEK AFTER ANNOUNCING CHRYSLER WOULD BE THE TARGET THE UNION IS DEMANDING IMPROVEMENTS IN WAGES PENSIONS AND BENEFITS IT ALSO WANTS A SHORTER WORKWEEK AND IT WANTS CHRYSLER TO HIRE MORE WORKERS INSTEAD OF RUNNING OVERTIME IN A TELEPHONE INTERVIEW YESTERDAY MR HARGROVE SAID THE UNION HAD MADE PROGRESS ON SEVERAL OF THE ISSUES BUT WARNED THERE WON'T BE A SETTLEMENT UNLESS ALL THE ISSUES ARE RESOLVED REGARDLESS OF WHETHER THERE'S A STRIKE MR KIRNAN OF SALOMON FIGURES CHRYSLER WILL HAVE TO OPEN ITS POCKETBOOK A LITTLE WIDER IN CANADA THIS TIME THAN IN THE US THE EXPECTATION IS THAT CANADIAN AUTO WORKERS ARE LIKELY TO GET BIGGER PROPORTIONAL GAINS IN THESE TALKS THAN THE UAW HE SAYS BECAUSE THAT DIFFERENCE IN THEIR LABOR COSTS IS SO HUGE IN DIRECT PAY A CANADIAN ASSEMBLER RECEIVES 2048 CANADIAN DOLLARS AN HOUR THAT'S THE EQUIVALENT OF 1550 IN US CURRENCY WHICH IS LOWER THAN THE US WORKER'S 1750 AN HOUR NOT ONLY STOCK ANALYSTS ARE WATCHING THE LABOR TALKS EARLIER THIS WEEK MOODY'S RAISED ITS DEBT RATING ON CHRYSLER TO INVESTMENT GRADE HOWEVER S&P SAID IT DIDN'T EXPECT TO MAKE A DECISION ON AN IMPROVED RATING DEBT FOR CHRYSLER UNTIL THE COMPANY HAD SIGNED NEW LABOR AGREEMENTS YEAR ENDED DEC 31 1992 SECOND QUARTER JUNE 30 1992 ANOTHER BIG BOOST FOR SALOMON STOCK NOT NECESSARILY THE BIG SECURITIES FIRM ANNOUNCED THAT IT PLANS TO BUY AS MANY AS 10 MILLION OF ITS SHARES INCLUDING 16 MILLION SHARES PREVIOUSLY AUTHORIZED FOR PURCHASE AT FIRST GLANCE THAT SOUNDS LIKE A PRICEBOLSTERING MOVE SINCE 1988 SALOMON HAS GONE AHEAD AND BOUGHT 304 MILLION OF THE 32 MILLION SHARES IT AUTHORIZED FOR REPURCHASE BUT ANALYSTS WERE WARY YESTERDAY AND THE STOCK WAS UNCHANGED AT 50 5/8 SALOMON'S SHARES HAVE SOARED 33 THIS YEAR AS THE FIRM SHAKES OFF ITS 1991 TREASURYAUCTION BIDDING SCANDAL THERE IS MUCH LESS IMPETUS FOR SALOMON TO REPURCHASE SHARES WHEN ITS STOCK IS ALREADY RISING SO THE ANALYSTS AREN'T SURE HOW AGGRESSIVELY THE FIRM WILL PURSUE BUYBACKS THE BUYBACK PLAN DOESN'T HURT SAYS LAWRENCE ECKENFELDER OF PRUDENTIAL SECURITIES BUT IT'S NOT A BIG POSITIVE EITHER SAYS GUY MOSZKOWSKI OF SANFORD C BERNSTEIN AND IF BROKERAGE STOCKS TAKE A TUMBLE AMID A MARKET CORRECTION A BUYBACK WON'T MEAN ANYTHING INVESTORS WILL RUN TO THE HILLS SAYS LEHMAN BROTHERS' DEAN EBERLING HE REMAINS NEUTRAL ON SALOMON 9309090118 930909 INTERNATIONAL CHINESE SEE ANTICORRUPTION CAMPAIGN AS SWATTING AT FLIES NOT CATCHING TIGERS BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL MIANYANG CHINA AT A STREETCORNER TEAHOUSE IN THIS SICHUAN PROVINCE CITY A GROUP OF MEN SIP TEA AND PHILOSOPHIZE ABOUT THE STATE OF THEIR COUNTRY AS THE TALK TURNS TO CORRUPTION THE CONVERSATION TURNS BITTER GOOD IS BAD AND BAD IS GOOD SAYS ONE A RETIRED CARPENTER IF YOU REPORT ROBBERS OR PROSTITUTES THE POLICE WILL BLAME YOU BECAUSE THEY ARE BEING PAID OFF BUT IF A PERSON HAS CONNECTIONS HE ADDS BORROWING FROM AN OLD CHINESE SAYING THEN HIS WHOLE FAMILY ASCENDS TO HEAVEN GROWING PUBLIC ANGER WITH RAMPANT CORRUPTION BY COMMUNIST PARTY AND GOVERNMENT OFFICIALS AND BUREAUCRATS THROUGHOUT CHINA HAS STIRRED FEARS AT THE HIGHEST LEVELS OF A POTENTIAL SOCIAL UNREST COMMUNIST PARTY GENERAL SECRETARY JIANG ZEMIN LAUNCHED A NATIONWIDE CAMPAIGN IN LATE AUGUST TO TACKLE THE PROBLEM WARNING THAT IF WE LET CORRUPTION RUN WILD OUR PARTY WILL BE RUINED BUT GIVEN THE WIDE SCOPE OF SUCH ILLEGAL ACTIVITIES AND A CONTINUING EROSION IN CENTRAL AUTHORITY THERE ARE STRONG DOUBTS THE CRACKDOWN WILL EXTEND BEYOND THE COSMETIC IN BEIJING THE ANTICORRUPTION CAMPAIGN HAS BEEN DUBBED THE CORRUPTION CAMPAIGN BY MANY CHINESE WHO DOUBT THE LEADERSHIP'S RESOLVE INDEED HIGHPROFILE CASES BEING PURSUED INVOLVE PEOPLE WHO ARE WIDELY REGARDED AS EXPENDABLE BECAUSE THEY DON'T HAVE THE PROPER CONNECTIONS TO PROTECT THEMSELVES ONE SUCH CASE INVOLVES A DEPUTY MINISTER ARRESTED IN THE GREAT WALL ELECTRONICS & MACHINERY CORP SCANDAL A CASE IN WHICH THE PUBLIC ALLEGEDLY WAS DEFRAUDED OF ONE BILLION YUAN 176 MILLION THEY ALSO INCLUDE THE HEAD OF DAQIUZHUANG CHINA'S RICHEST VILLAGE ARRESTED MONTHS BEFORE THE ANTICORRUPTION CAMPAIGN IN CONNECTION WITH THE BEATING DEATH OF A WORKER HE RECENTLY RECEIVED A 20YEAR PRISON SENTENCE IN A SHOW TRIAL IN OTHER CASES SEVERAL LOWERRANKING OFFICIALS HAVE BEEN SENTENCED TO DEATH OR LONG PRISON TERMS FOR OFFENSES THAT EVEN THE AUTHORITIES CONCEDE REPRESENT ONLY THE TIP OF THE CORRUPTION ICEBERG A HUNAN PROVINCIAL OFFICIAL SAYS THE ANTICORRUPTION SCRUTINY IN HIS PROVINCE IS FOCUSED ON MIDDLE AND LOWERLEVEL OFFICIALS WE'VE STARTED TO DETAIN PEOPLE BUT ONLY AT THE DEPARTMENT LEVEL HE SAYS SOME PEOPLE WILL THINK THAT WE'RE SWATTING THE FLIES BUT NOT CATCHING THE TIGER BUT IT'S EASIER TO HIT THE FLIES HE ACKNOWLEDGES THAT IT WON'T BE ENOUGH TO SIMPLY PRESENT AN APPEARANCE OF CRACKING DOWN IF WE DO THAT HOW WILL WE EXPLAIN THAT TO THE PEOPLE THEY'RE VERY ANGRY GOING AFTER THE TIGERS IS A SENSITIVE BUSINESS AS IN THE 1980S NUMEROUS HIGHLEVEL OFFICIALS AND IN MANY CASES THEIR FAMILY MEMBERS ARE WIDELY BELIEVED TO BE PROFITING FROM THEIR CONNECTIONS RUMORS ARE RIFE ABOUT THE ACTIVITIES OF TOP CHINESE LEADER DENG XIAOPING'S OFFSPRING AND THEIR SPOUSES WHO ARE INVOLVED IN REAL ESTATE THE STOCK MARKET AND TRADE DURING THE LAST MAJOR CLEANUP AFTER THE 1989 PRODEMOCRACY PROTESTS WHICH WERE TRIGGERED AT LEAST IN PART BY ANGER AGAINST OFFICIAL CORRUPTION A COMPANY RUN BY MR DENG'S SON PUFANG WAS SHUT DOWN HE WASN'T PUNISHED AT ALL AND OTHERS WHO WERE CAUGHT RECEIVED RELATIVELY LIGHT PENALTIES THIS TIME SOME GAOGANZIDI WILL PROBABLY BE HIT AS AN EXAMPLE A CHINESE ACADEMIC SAYS USING A COMMON TERM FOR THE OFFSPRING OF SENIOR PARTY CADRES BUT THE FIRST PRIORITY FOR THE GOVERNMENT IS POLITICAL STABILITY SO THAT WILL PROBABLY PROTECT A LOT OF INTEREST GROUPS THE CAMPAIGN WILL STOP WHERE IT THREATENS THE COLLECTIVE LEADERSHIP ANTICORRUPTION CAMPAIGNS HAVE LONG BEEN PART OF CHINA'S HISTORY WHAT DISTINGUISHES THE CURRENT CORRUPTION TREND FROM OTHERS UNDER COMMUNIST RULE IS THE SCOPE OF PARTICIPATION AND SIZE OF FUNDS INVOLVED LIANG GUOQING DEPUTY PROCURATORGENERAL OF THE SUPREME PEOPLE'S PROCURATORATE SAYS THE NUMBER OF GRAFT CASES INVOLVING MORE THAN ONE MILLION YUAN HAS MORE THAN DOUBLED THIS YEAR TO 95 IN A RECENT CASE IN AUSTRALIA FOR EXAMPLE A CHINESE STUDENT WAS CHARGED WITH SIPHONING 40 MILLION AUSTRALIAN DOLLARS US26 MILLION FROM AN OVERSEAS BANK ACCOUNT HELD BY THE PEOPLE'S LIBERATION ARMY AND TRANSFERRING MOST OF THE MONEY TO THE US CORRUPTION SUCH AS GRAFT AND BRIBERY IS NOW WORSE THAN AT ANY OTHER PERIOD SINCE NEW CHINA WAS FOUNDED IN 1949 MR LIANG TOLD THE OFFICIAL XINHUA NEWS AGENCY IT HAS SPREAD INTO THE PARTY GOVERNMENT ADMINISTRATIONS AND EVERY PART OF SOCIETY INCLUDING POLITICS THE ECONOMY IDEOLOGY AND CULTURE THE MAJORITY OF OFFENDERS ARE PROBABLY MIDDLE AND LOWLEVEL CADRES WHO HAVE AUTHORITY OVER FUNDS OR APPROVAL POWERS OVER OTHER MATTERS CHINESE OFFICIALS SAY THEIR ACTIVITIES SUCH AS APPROVING BANK LOANS IN EXCHANGE FOR UNDERTHETABLE PAYMENTS HAVE ABETTED FEVERISH SPECULATION IN PROPERTY AND STOCKS WHICH IN TURN HAS FUELED DOUBLEDIGIT INFLATION SOME ILLICIT ACTIVITIES MAY BE OCCURRING SIMPLY BECAUSE IT IS OFTEN UNCLEAR WHAT IS LAWFUL AND WHAT ISN'T UNDER THE COUNTRY'S RAPIDLY EVOLVING ECONOMIC REFORMS IN THE PROCESS OF MOVING AWAY FROM CENTRAL PLANNING AND STIMULATING PRIVATE ENTERPRISE CHINA HAS SEEN MARKET ACTIVITIES SPREAD RAPIDLY BUT REFORMS IN ITS BUREAUCRACY AND REGULATORY CONTROLS HAVEN'T KEPT PACE OFFICIALS RETAIN MANY POWERS OVER THE ECONOMY FROM REGISTERING COMPANIES TO ISSUING TRADE PERMITS TO COLLECTING TAXES LEAVING MUCH ROOM FOR ABUSE NOR DOES CHINA HAVE A SYSTEM OF POLITICAL ACCOUNTABILITY TO CHECK ABUSES OF AUTHORITY JULIA LEUNG IN HONG KONG CONTRIBUTED TO THIS ARTICLE 9309090117 930909 GAMBLING BONANZAS FROM RIVERBOAT CASINOS BUOY FORTUNES OF MORE CITIES GAMBLING FIRMS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL SCARCELY TWO YEARS AFTER THE FIRST MODERN RIVERBOAT CASINOS HIT THE MISSISSIPPI SCORES OF CITIES AND STATES ARE PRAYING FOR THEIR OWN SHIPS TO COME IN DESPITE THE LIKELIHOOD OF A SHAKEOUT IN THE ALREADYCROWDED GULF COAST REGION ALONG WITH SOME OVERHEATED GAMBLING STOCKS RIVERBOAT GAMBLING REMAINS ONE OF THE HOTTEST COMMODITIES AFLOAT THE WATERBORNE CASINOS ARE LEGAL IN SIX STATES IOWA ILLINOIS MISSISSIPPI MISSOURI LOUISIANA AND INDIANA AND UNDER CONSIDERATION IN AT LEAST A DOZEN MORE THE 22 RIVERBOAT AND DOCKSIDE CASINOS NOW OPEN WILL CHURN OUT NEARLY 1 BILLION IN GROSS GAMBLING REVENUES THIS YEAR ANALYSTS ESTIMATE DOZENS MORE ARE STATEAPPROVED AND MORE THAN 80 LICENSE APPLICATIONS ARE PENDING SOME OBSERVERS PREDICT THAT 90 FLOATING CASINOS COULD BE IN BUSINESS BY THE END OF 1995 THE GROWTH IS JUST PHENOMENAL BECAUSE THERE ARE SUCH COMPELLING SOCIAL AND ECONOMIC FACTORS BEHIND IT SAYS JIM MURREN AN ANALYST WITH CJ LAWRENCE IF PROPONENTS SUCCEED RIVERBOAT CASINOS MAY RIDE THE WATERS FROM THE TEXAS SHORES TO BOSTON HARBOR BRINGING FLOTILLAS OF SLOT MACHINES TO AMERICA'S LAKES RIVERS AND COASTAL WATERWAYS GAMBLING INTERESTS ARE GEARING UP TO EXPAND THE BOATS FROM HEARTLAND COMMUNITIES LIKE SIOUX CITY IOWA TO URBAN STRONGHOLDS SUCH AS CHICAGO BOSTON PITTSBURGH AND PHILADELPHIA A NOTION THAT HAS INDUSTRY OPERATORS IN ATLANTIC CITY AND ELSEWHERE IN A LATHER DESPITE SOME FORMIDABLE POLITICAL OPPOSITION RIVERBOATS ARE EXPECTED TO APPEAR SOON ON THE LEGISLATIVE AGENDAS OF TEXAS PENNSYLVANIA WEST VIRGINIA MASSACHUSETTS OHIO WISCONSIN MINNESOTA AND OTHER STATES AS LEGISLATORS GRAPPLE WITH CHRONIC BUDGET DEFICITS AND ANTITAX CONSTITUENTS THERE'S SOMETHING POLITICALLY PALATABLE AND NONTHREATENING ABOUT GAMBLING ON A BOAT AND IT'S SOMETHING YOU'D PROBABLY NEED A THEOLOGIAN TO EXPLAIN SAYS ONE CASINOINDUSTRY EXECUTIVE WHY IS IT BETTER ON WATER WHO KNOWS FEW AREAS DEMONSTRATE THE APPEAL OF RIVERBOATS BETTER THAN JOLIET ILL A TOWN OF 77000 ON THE DES PLAINES RIVER ABOUT AN HOUR'S DRIVE FROM CHICAGO DEVASTATED BY THE CLOSING OF A US STEEL PLANT AND OTHER BUSINESSES IN THE EARLY 1980S AND MIRED IN 25 UNEMPLOYMENT BY 1985 JOLIET WAS SELECTED FOR RESUSCITATION BY GAMBLING DOLLARS WHEN THE STATE LEGALIZED RIVERBOAT CASINOS IN 1990 NOW TWO RIVERBOAT CASINOS THE EMPRESS AND PROMUS COS' NORTHERN STAR ARE PUMPING ABOUT 15 MILLION A MONTH INTO LOCAL COFFERS RAISING AN ESTIMATED 15 MILLION OF THE CITY'S 90 MILLION BUDGET THIS YEAR TWO MORE BOATS IN THE WORKS COULD NEARLY DOUBLE THE CITY'S MONTHLY TAKE OFFICIALS SAY THE WINDFALL IS BEING CHANNELED INTO BADLY NEEDED NEIGHBORHOOD IMPROVEMENTS AND A DOWNTOWNREVITALIZATION PROGRAM BUT WITH THE POSSIBILITY OF A HUGE RIVERBOAT ENTERTAINMENT COMPLEX BEING LEGALIZED IN CHICAGO AND MEMORIES OF PAST ECONOMIC TRAUMAS MANY RESIDENTS AND OFFICIALS REMAIN PRAGMATIC IT'S BEEN VERY GOOD SAYS JAN VITALE A CITY PLANNER WHOSE HUSBAND AND SON WORK AT THE CASINOS BUT WE'LL HAVE TO SEE HOW IT GOES PUBLIC POLICY ASIDE THE BOATS ARE A TESTAMENT TO GAMBLING'S ENORMOUS POPULARITY FOR JAMES ISAACSON OF CICERO ILL AND TENS OF THOUSANDS LIKE HIM THE BOATS ARE AN ENTICING ADDITION TO THE ENTERTAINMENT SCENE IT'S SORT OF A HOBBY SAYS MR ISAACSON A RETIREE WHO SAYS THE BOATS HAVE JOINED JOGGING ON HIS LIST OF REGULAR ACTIVITIES THE VARIOUS RIVERBOAT CASINOS NOW AFLOAT IN JOLIET AND ELSEWHERE HAVE DIFFERENT APPROACHES IN IOWA WHERE THE FIRST CASINOS SET SAIL IN APRIL 1991 GAMBLERS CAN TAKE A THREEHOUR MISSISSIPPI RIVER CRUISE ON THE PRESIDENT A REFURBISHED 1920SERA SHIP PATRONS ARE RESTRICTED BY LAW TO 5 BETTING LIMITS AND A MAXIMUM LOSS OF 200 PER CRUISE THAT ALONG WITH OTHER CONSTRAINTS HAS PROMPTED THREE VESSELS TO HEAD DOWN RIVER TO MORE LIBERAL LOCALES THE PRESIDENT HAS THREATENED TO DO THE SAME IF IOWA STATUTES AREN'T EASED DOWN THE RIVER IN GULFPORT MISS THE DOCKSIDE GRAND CASINO'S 225000 SQUARE FEET OF SLOT MACHINES AND GAMBLING TABLES BRIGHT LIGHTS AND RESTAURANTS AND NO BETTING OR LOSS LIMITS WOULD FIT EASILY IN LAS VEGAS OR ATLANTIC CITY AND ALTHOUGH IT TECHNICALLY FLOATS THE GRAND WOULD BE ABOUT AS SEAWORTHY AS A LAS VEGAS CASINO IF FORCED TO MOVE FROM ITS MOORINGS UNDER STATE LAWS THE GAMBLING HALLS AREN'T EVER REQUIRED TO LEAVE THE DOCK AS THE BOATS SPREAD MAJOR CASINO OPERATORS WHO ONCE POOHPOOHED RIVERBOATS HAVE JOINED THE REGATTA IN ADDITION TO DOZENS OF PRIVATE AND SMALLCAPITAL PUBLIC COMPANIES INDUSTRY HEAVYWEIGHTS INCLUDING PROMUS HILTON HOTELS CORP MIRAGE RESORTS INC AND CIRCUS CIRCUS ENTERPRISES ARE COMPETING FOR LICENSES OR WANGLING MANAGEMENT CONTRACTS FROM LOCAL PARTNERS WITH LICENSES BUT IN THIS FASTCHANGING MARKET SOME PLAYERS ARE BOUND TO FOLD THE GULF COAST WITH ITS PHENOMENAL GROWTH IS THE HOT SPOT FOR OVERBUILDING WORRIES MISSISSIPPI HAS NINE BOATS IN THE WATER AND TWO MORE ABOUT TO BE LAUNCHED WHILE LOUISIANA HAS 15 RIVERBOAT LICENSES IN THE WORKS AND A HUGE LANDBASED CASINO SLATED FOR NEW ORLEANS AND WITH TEXAS CONSIDERING RIVERBOATS AND ALABAMA LOOKING INTO LANDBASED CASINOS THE PRESSURE IS MOUNTING BRUCE TURNER AN ANALYST WITH RAYMOND JAMES & ASSOCIATES SAYS THE GULF COAST AREA ALREADY IS OVERBUILT AND EXPECTS TO SEE CONSOLIDATION THERE IN THE NEXT 18 MONTHS HE FIGURES FOR EXAMPLE THAT THE REGION HAS ABOUT 186 MILLION PEOPLE LIVING WITHIN A 360MILE RADIUS OF CASINO TERRAIN ABOUT THE MAXIMUM DISTANCE FOR DRIVEIN CUSTOMERS COMPARED WITH ABOUT 647 MILLION FOR ATLANTIC CITY CASINO EXECUTIVES WITH BIG INVESTMENTS ON THE GULF COAST DON'T DENY THERE WILL BE A SHAKEOUT THERE BUT ARGUE THAT THE AREA WILL CONTINUE TO THRIVE AS A REGIONAL MARKET CERTAINLY THERE IS PLENTY OF GROWTH AHEAD FOR RIVERBOATS IN GENERAL BUT THE DAYS OF EASY MONEY AND 40 PROFIT MARGINS MAY BE HISTORY IN ALL MARKETS BIDDERS FACE MORE COMPETITION FOR PRIME LOCATIONS AND MUNICIPALITIES ARE BECOMING SAVVIER DEMANDING MORE SHORELINE DEVELOPMENT SUCH AS RESTAURANTS AND HOTEL ROOMS THE COSTS OF ENTRY ARE ALREADY A LOT HIGHER SAYS GLENN SCHAEFFER A PARTNER IN GOLD STRIKE RESORTS A CLOSELY HELD NEVADA CASINO COMPANY THAT TEAMED WITH HYATT DEVELOPMENT CORP TO WIN THE FINAL RIVERBOAT LICENSE FROM ILLINOIS THE GROUP PLANS TO SINK 53 MILLION INTO A RIVERBOAT COMPLEX THAT WILL HOUSE MOVIE THEATERS RESTAURANTS AND OTHER ATTRACTIONS SOME AREAS ALSO MAY HAVE TO FIGHT WITH COMPETING GAMBLING INTERESTS FOR GROWTH AS REGIONS REACH THE SATURATION POINT IN PENNSYLVANIA GOV ROBERT P CASEY HAS BEEN A VOCAL OPPONENT OF RIVERBOAT CASINOS BUT PHILADELPHIA MAYOR EDWARD RENDELL LOBBYISTS AND CASINOINDUSTRY EXECUTIVES ALREADY ARE DRAWING UP BATTLE PLANS TO WIN LEGALIZATION THERE'S NO QUESTION THAT RIVERBOATS IN PHILADELPHIA COULD HURT ATLANTIC CITY SAYS PETER BOYNTON PRESIDENT OF CAESARS ATLANTIC CITY ONE OF THE BIGGEST MONEYMAKERS ON THE BOARDWALK ABOUT 30 OF THE ATLANTIC CITY MARKET COMES FROM PHILADELPHIA AND ITS SUBURBS IN CHICAGO A PLAN TO HITCH FIVE RIVERBOATS TO AN ENTERTAINMENT COMPLEX IS EXPECTED TO REEMERGE THIS FALL AS THE CITY GRAPPLES WITH WAYS TO FUND PUBLIC SERVICES THE LAW LEGALIZING RIVERBOATS IN ILLINOIS DIDN'T INCLUDE CHICAGO MEANING A BILL WOULD HAVE TO WIN THE APPROVAL OF BOTH THE LEGISLATURE AND THE GOVERNOR ONE CONCERN IS THAT A CHICAGO GAMBLING CENTER COULD HURT RIVERBOATS IN OUTLYING COMMUNITIES WHICH DEPEND ON CUSTOMERS FROM THE CITY'S SUBURBS BUT FOR THE RIVERBOAT INDUSTRY AS A WHOLE BOOSTERS SAY IT'S FULL STEAM AHEAD THERE MAY BE TWO YEARS WHERE NO STATES LEGALIZE THEM THEN A THIRD YEAR WHERE WE SEE THREE OR FOUR GO ONLINE SAYS LARRY LACAFF PRESIDENT OF THE HARRAH'S RIVERBOAT GAMBLING UNIT OF PROMUS BUT WE DON'T SEE THINGS SLOWING DOWN OVER THE NEXT FIVE TO SEVEN YEARS 9309090116 930909 WHO'S NEWS CS FIRST BOSTON NAMES WHEAT PRESIDENT OPERATING CHIEF FIRM TO USE ONE NAME BY RANDALL SMITH AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CS FIRST BOSTON GROUP NAMED ALLEN WHEAT PRESIDENT AND CHIEF OPERATING OFFICER AND SAID IT PLANS TO ELIMINATE ITS DIFFERENT REGIONAL NAMES TO OPERATE UNDER THE SINGLE NAME OF CS FIRST BOSTON THE PROMOTION OF MR WHEAT 45 YEARS OLD WHO HAS LED THE SECURITIES FIRM'S PROFITABLE DERIVATIVES DIVISION AS WELL AS ITS FOREIGN EXCHANGE AND FIXEDINCOME OPERATIONS FILLS A TOPMANAGEMENT VOID CREATED BY THE DEPARTURE IN MIDJULY OF ARCHIBALD COX JR MR COX WHO WAS PRESIDENT AND CHIEF EXECUTIVE OF THE FIRST BOSTON CORP US UNIT QUIT SUDDENLY AMID A SPATE OF DEFECTIONS OF TOP INVESTMENT BANKERS MANY OF WHOM LEFT COMPLAINING THAT COMPENSATION AT FIRST BOSTON LAGGED BEHIND RIVAL FIRMS MR WHEAT'S RISE AT FIRST BOSTON HAS BEEN RAPID IN 1990 HE WAS HIRED AWAY FROM BANKERS TRUST NEW YORK CORP WHERE HE HELPED LAUNCH ITS PIONEERING AND NOW HUGELY SUCCESSFUL SWAPS AND DERIVATIVES DIVISION BETWEEN 1990 AND 1992 HE LED THE SECURITIES AND INVESTMENT BANKING ACTIVITIES AT CS FIRST BOSTON PACIFIC INC ANALYSTS SAID MR WHEAT'S EXPERTISE IN THE HOT BUSINESSES ON WALL STREET DERIVATIVES FOREIGN EXCHANGE AND THE ASIAN MARKETS MAY SIGNAL A SHIFT IN PRIORITIES AT CS FIRST BOSTON THERE SEEMS TO BE A TILT ON THE PART OF THE FIRM TOWARD THE CAPITAL MARKETS BALANCING FIRST BOSTON'S TRADITIONAL ROOTS IN MERGERS AND ACQUISITIONS AND INVESTMENT BANKING SAID SANFORD C BERNSTEIN & CO ANALYST GUY MOSZKOWSKI UP TO NOW HE ADDED THE FIRM HASN'T JELLED AS A WORLDWIDE UNIT FOR A VARIETY OF REASONS BUT A SINGLE NAME IS A TERRIFIC FIRST STEP MR WHEAT WILL REPORT TO JOHN M HENNESSY 57 CHAIRMAN OF THE FIRM'S EXECUTIVE BOARD AND CHIEF EXECUTIVE OFFICER MR HENNESSY ALSO HAD HELD THE PRESIDENT'S JOB THE FIRM IS A SUBSIDIARY OF CS HOLDING THE SWISSBASED PARENT OF THE GIANT CREDIT SUISSE BANK THE APPOINTMENT OF MR WHEAT TOGETHER WITH SEVERAL OTHER JOB CHANGES ANNOUNCED LATE YESTERDAY ARE THE FIRST TO BE MADE SINCE THE FIRM DECIDED IN JUNE TO OPERATE ALONG PRODUCT LINES INSTEAD OF GEOGRAPHICAL ONES FOR THE PAST FIVE YEARS THE FIRM HAS OPERATED AS FIRST BOSTON CORP IN THE US FINANCIERE CREDIT SUISSEFIRST BOSTON IN EUROPE AND CS FIRST BOSTON PACIFIC IN ASIA HOWEVER THAT STRUCTURE GAVE RISE TO NUMEROUS TERRITORIAL BATTLES AND CONFUSION OVER ITS CORPORATE IDENTITY THE FIRM PLANS TO ELIMINATE THOSE NAMES AND THE CS FIRST BOSTON GROUP NAME BY YEAREND IN AN INTERVIEW MR HENNESSY CONCEDED THE FIRM HAD LOST VALUED BANKERS BUT SAID THE ONE FIRM ONE CLEAR STRUCTURE WILL MAKE IT EASIER TO HIRE PEOPLE IN THE FUTURE HE AND MR WHEAT ALSO SAID THE REORGANIZATION ALONG PRODUCT LINES WOULDN'T CAUSE ANY JOB CUTS THE FIRM NOW EMPLOYS NEARLY 6000 PEOPLE MR HENNESSY ADDED THAT WHILE HE AGREED THAT THERE IS MONEY TO BE MADE IN THE CAPITALMARKETS AREAS THE FIRM INTENDS TO KEEP THE BALANCE BETWEEN THOSE BUSINESSES AND MERGERS AND UNDERWRITING ADDITIONALLY CS FIRST BOSTON NAMED DAVID MULFORD COHEAD OF WORLDWIDE INVESTMENT BANKING AND ROBERT DIAMOND JR HEAD OF FIXED INCOME AND FOREIGN EXCHANGE TO BE VICE CHAIRMEN MR WHEAT HAD BEEN COHEAD OF FOREIGN EXCHANGE WITH MR DIAMOND AND HEAD OF EUROPEAN FIXED INCOME HE REMAINS HEAD OF THE FIRM'S DERIVATIVES OPERATION A JOINT VENTURE WITH CREDIT SUISSE ALSO IN THE REORGANIZATION CHARLES MURPHY HEAD OF US INVESTMENT BANKING BECOMES COHEAD OF WORLDWIDE INVESTMENT BANKING WITH MR MULFORD AND JAMES GANTSOUDES HEAD OF US EQUITIES BECOMES HEAD OF WORLDWIDE EQUITIES MR WHEAT'S PROMOTION IS JUST THE LATEST SIGN OF THE HUGE GROWTH AND PROFITABILITY OF DERIVATIVES ON WALL STREET DERIVATIVES ARE SECURITIES SUCH AS FUTURES AND OPTIONS WHOSE VALUE DEPENDS ON THE PRICE OF OTHER SECURITIES THEY ARE USED BY CORPORATIONS TO HEDGE RISKS AND BY TRADERS TO MAKE BETS ON THE DIRECTION OF PARTICULAR MARKETS 9309090115 930909 ONLY A WELLBALANCED INDIVIDUAL MASTERS THIS COMPUTER SOFTWARE BY MICHAEL WOFSEY STAFF REPORTER OF THE WALL STREET JOURNAL STEVE MILLS IS AMONG THE WORLD'S MOST SUCCESSFUL JUGGLERS BUT THE PRESSURE TO PLEASE JADED AUDIENCES THESE DAYS OFTEN DRIVES HIM TO NEW HEIGHTS LIKE THE CLASSIC CASCADE JUGGLE HE HAS BEGUN DOING WITH A TENNIS BALL HIS SIXYEAROLD DAUGHTER AND HIS TWOYEAROLD SON AND WHEN EVEN FLINGING CHILDREN AROUND FAILS THERE'S JUGGLEPRO TO HELP OUT CREATED BY ED CARSTEN A COLLEGE STUDENT IN GAINESVILLE FLA JUGGLEPRO IS A PERSONALCOMPUTER PROGRAM USING MATHEMATICAL MODELS TO GENERATE JUGGLING COMBINATIONS AND LET JUGGLERS FIND OUT IF A TRICK IS FEASIBLE PROFESSIONALS LIKE MR MILLS ARE USING PROGRAMS LIKE JUGGLEPRO TO TEST TRICKS ON THE SCREEN MR MILLS'S MOST RECENT INVENTION WITH A BIT OF INSPIRATION FROM THE COMPUTER HAS HIM JUGGLING BOWLING PINS WHILE BALANCING A POLE ON HIS NOSE WHICH SUPPORTS A LEAFBLOWER HOLDING UP A BEACH BALL IN ITS AIR STREAM SOFTWARE FOR JUGGLERS COMES AT A TIME WHEN MANY JUGGLERS HAVE TO REACH JUST TO KEEP BREAD ON THEIR TABLES MEDIEVAL JESTERS CHARMED COURTS BY JUGGLING JUST THREE BALLS AND VAUDEVILLE PERFORMERS ONCE CONFOUNDED AUDIENCES BY KEEPING FOUR BOWLING PINS ALOFT BUT MODERN JUGGLERS MUST RESORT TO AS THE FLYING KARAMAZOV BROTHERS DID IN RECENT ACTS TOSSING THINGS LIKE FLAMING CACTI AND BAGS OF PICKLED FROGS TO EVEN GET A GIGGLE BARRY FRIEDMAN ONEHALF OF THE RASPYNI BROTHERS JUGGLING TEAM TAKES A LAPTOP COMPUTER ON THE ROAD WITH HIS ACT AND CONSULTS JUGGLEPRO WHEN HIS CREATIVITY IS FLAGGING IT SHOWS YOU THINGS ON THE SCREEN AND YOU SAY WOW WHAT IS THAT' SAYS MR FRIEDMANSTRONG WORDS COMING FROM A MAN FAMOUS FOR JUGGLING PINGPONG BALLS WITH HIS MOUTH MR CARSTEN CHARGES 20 FOR THE JUGGLEPRO PACKAGE HE HOPES TO UPDATE THE CURRENT VERSION WHICH SHOWS ONLY CARTOONLIKE HANDS JUGGLING BALLS FUTURE VERSIONS HE SAYS MIGHT SHOW ANIMATED FULLBODY TRICKS IN WHICH FOR EXAMPLE JUGGLERS THROW BOWLING PINS BEHIND THEIR BACKS AS IT IS JUGGLEPRO SHOWS FEATS THAT AWE EVEN PROFESSIONALS IF YOU WANT TO SEE A 59BALL JUGGLE JUGGLEPRO IS THE WAY TO DO IT SAYS ANDREW CONWAY AN OCCASIONAL STREET JUGGLER STILL MR CONWAY USUALLY SPURNS ESOTERIC COMPUTERGENERATED COMBINATIONS FOR TRICKS LIKE ONE HE DOES WITH A BALL A TENNIS RACKET AND A TOILET PLUNGER TECHNIQUE DOESN'T GET YOU JOBS HE SAYS COMEDY GETS YOU JOBS 9309090114 930909 POTASH SELLS FOUR MILLION SHARES SASKATOON SASKATCHEWAN POTASH CORP SAID IT SOLD FOUR MILLION COMMON SHARES TO AN UNDERWRITERS GROUP FOR 2575 CANADIAN DOLLARS US1949 A SHARE THE POTASH PRODUCER SAID IT PLANS TO USE THE PROCEEDS TO HELP BUY THE POTASH OPERATIONS OF RIO ALGOM LTD A TORONTO MINING COMPANY FOR C160 MILLION THE ACQUISITION IS EXPECTED TO CLOSE BY OCT 15 THE SHARES WILL BE OFFERED TO THE PUBLIC IN CANADA 28 MILLION OF THEM WILL BE REGISTERED FOR SALE IN THE US THE COMPANY SAID IT PREVIOUSLY HAD 388 MILLION COMMON SHARES OUTSTANDING IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE POTASH SHARES CLOSED AT 20 DOWN 25 CENTS 9309090113 930909 COUNTERPOINT NAFTA FREE TRADE IN NAME ONLY BY JAMES M SHEEHAN THE MASSIVE NORTH AMERICAN FREE TRADE AGREEMENT A 2000PAGE TOME FURTHER ENCUMBERED BY FRESHLY NEGOTIATED SIDE AGREEMENTS IS FINALLY LUMBERING THROUGH THE CONGRESSIONAL RATIFICATION PROCESS BUT BEFORE FREE TRADE PROPONENTS IN CONGRESS SIGN ON TO THIS EPIC OF LEGALESE THEY SHOULD ACTUALLY TRY TO READ IT AS NAFTA UNFORTUNATELY DEMONSTRATES ONE CANNOT JUDGE A BOOK BY ITS COVER DESPITE ITS HOPEFUL TITLE NAFTA PARALLELS THE CLINTON BUDGET PACKAGE IMMEDIATELY RAISING TRADE BARRIERS AND ERECTING A VAST SUPRANATIONAL TRADE BUREAUCRACY ON JAN 1 1994 WHILE PROMISING TARIFF PHASEOUTS THAT DON'T FULLY MATERIALIZE UNTIL THE YEAR 2009 MEANWHILE THE TARIFF REDUCTIONS THEMSELVES MAY BE REPEALED BY PROCEDURES CONTAINED IN NAFTA'S LITTLEKNOWN CHAPTER 8 CALLED SNAPBACK PROVISIONS THE PRENAFTA TARIFFS MAY BE APPLIED AGAINST MEXICAN OR CANADIAN IMPORTS THAT CAUSE OR THREATEN SERIOUS INJURY TO A DOMESTIC INDUSTRY THE CLINTON ADMINISTRATION'S RECENT SIDE AGREEMENTS ALLOW FOR THE EXPANSION OF BOTH IMPORT TARIFFS AND QUOTAS UNDER CHAPTER 8 ENABLING EACH COUNTRY TO ENACT PROTECTIONIST POLICIES FOR PARTICULAR INDUSTRIES FOR THE PURPOSE OF FOR INSTANCE ARRESTING DECLINING UNEMPLOYMENT IN UNCOMPETITIVE INDUSTRIES THIS IS FREE TRADE UPON RATIFICATION NAFTA WILL IMPOSE STRICT RULES OF ORIGIN REQUIRING CERTAIN PRODUCTS TO BE MANUFACTURED WHOLLY OR PARTIALLY IN NORTH AMERICA IF THEY ARE TO ESCAPE PUNITIVE TARIFFS OR QUOTAS THESE SIGNIFICANT TRADE BARRIERS WILL COVER A WIDE RANGE OF PRODUCTS INCLUDING AUTOMOBILES LIGHT TRUCKS TEXTILES COMPUTER CIRCUITRY PEANUT BUTTER ORANGE JUICE AND DAIRY PRODUCTS ATTACHING SOCALLED RULES OF ORIGIN TO NAFTA WAS A THINLY VEILED ATTEMPT TO SHIELD PARTICULAR DOMESTIC PRODUCERS FROM FOREIGN COMPETITION BESIDES OVERT NONTARIFF TRADE BARRIERS THE CLINTON ADMINISTRATION'S SIDE AGREEMENTS CREATE EXPANSIVE BUREAUCRACIES ESTABLISHED TO ENFORCE LABOR AND ENVIRONMENTAL REGULATIONS THESE BODIES INCLUDE MINISTERIAL COUNCILS INTERNATIONAL COORDINATING SECRETARIATS NATIONAL ADMINISTRATIVE OFFICES JOINT ADVISORY COMMITTEES EVALUATION COMMITTEES OF EXPERTS AND DISPUTE SETTLEMENT PANELS THIS ALPHABET SOUP OF TRINATIONAL BUREAUCRACIES IS GRANTED UNPRECEDENTED POWER TO CONDUCT INVESTIGATIONS ISSUE COMPREHENSIVE REPORTS AND FACILITATE COOPERATION BETWEEN NATIONAL GOVERNMENTS FOR THE PURPOSE OF HARMONIZING WORKER SAFETY AND ENVIRONMENTAL REGULATIONS UNLIKE FREE TRADE NAFTA'S INTERNATIONAL RED TAPE COULD EASILY ENTANGLE BUSINESSES A WIDE RANGE OF ISSUES WOULD FALL UNDER THE PURVIEW OF THE NAFTA COMMISSIONS THE LABOR COMMISSION WOULD HAVE A BROAD MANDATE COVERING SUCH ISSUES AS OCCUPATIONAL HEALTH AND SAFETY BENEFITS FOR WORKERS AND INDUSTRIAL RELATIONS THE COMMISSION ON ENVIRONMENTAL COOPERATION WOULD BE ABLE TO CONSIDER ENVIRONMENTAL IMPLICATIONS OF PRODUCTS THROUGHOUT THEIR LIFECYCLES ACCORDING TO THE OFFICE OF THE US TRADE REPRESENTATIVE ANY ENVIRONMENTAL OR NATURAL RESOURCE ISSUE MAY BE ADDRESSED BY THE COMMISSIONS IN ADDITION NAFTA INVENTS A NEW JUSTIFICATION FOR BUREAUCRATIC INTRUSIONS INTO TRADE POLICY WHILE MOST INTERNATIONAL TRADE LAW ALLOWS GOVERNMENT REVIEW OF TRADERELATED ENVIRONMENTAL DISPUTES WHICH REQUIRES SOME TRADE INJURY TO BE SHOWN FOR THE GOVERNMENT TO INTERVENE THE NAFTA ENVIRONMENTAL COMMISSION IS AUTHORIZED TO ADJUDICATE OVER ANY MATTERS THAT ARE REMOTELY TRADECONNECTED THIS NEW DEFINITION EXPANDS GOVERNMENTAL AUTHORITY SO THAT ANY ENVIRONMENTAL ISSUE WITH ANY CONCEIVABLE IMPACT ON CROSSBORDER TRADE OR INVESTMENT IS SUBJECT TO REVIEW THUS THE NAFTA COMMISSION MAY COMPEL MORE STRINGENT ENFORCEMENT OF ANY NATION'S ENVIRONMENTAL LAWS NOT JUST THOSE IMPACTING ON CROSSBORDER TRADE US TRADE REPRESENTATIVE MICKEY KANTOR HIMSELF DESCRIBES THESE LABOR AND ENVIRONMENTAL PROVISIONS AS NEW AND UNIQUE ALSO STUNNING IN TERMS OF TRADE AGREEMENTS NAFTA'S EXPANSION OF EXTRATERRITORIAL BUREAUCRACY IS BOUGHT WITH THE PRICE OF NATIONAL SOVEREIGNTY AS PART OF THE DISPUTE RESOLUTION PROCESS NAFTA'S DISPUTE SETTLEMENT PANEL MAY ASSIGN ACTION PLANS TO NATIONAL GOVERNMENTS COMPELLING THEM TO MORE STRICTLY ENFORCE ENVIRONMENTAL OR LABOR REGULATIONS THE PANEL WOULD BE GIVEN JURISDICTION OVER ALL SUBNATIONAL GOVERNMENTS FROM THE YUKON TO THE YUCATAN INCLUDING OUR OWN STATE AND LOCAL GOVERNMENTS IF AN ACTION PLAN IS NOT CARRIED OUT THE PANEL MAY IMPOSE FINES ON THE OFFENDING COUNTRY OF AS MUCH AS 20 MILLION PER OFFENSE THE PANEL ALSO HAS THE POWER TO AUTHORIZE TRADE SANCTIONS AGAINST A COUNTRY RESULTING IN NOT ONLY TARIFFS BUT A COMPLETE REVOCATION OF NAFTA'S TRADE AND INVESTMENT BENEFITS NAFTA SUBJECTS THE US AND MEXICO TO THE SAME TRADE SANCTIONS THAT CANADA UTTERLY REJECTED AS AN INFRINGEMENT ON ITS AUTONOMY NAFTA'S COMPLEX ADMINISTRATIVE PROCESS WOULD ALSO GRANT EXTRAORDINARY POWER AND INFLUENCE TO NONGOVERNMENTAL ORGANIZATIONS THE AFOREMENTIONED JOINT ADVISORY COMMITTEE ALONG WITH THE EVALUATION COMMITTEES OF EXPERTS WOULD COMPRISE REPRESENTATIVES FROM ENVIRONMENTALIST GROUPS AND LABORSUPPORTED ORGANIZATIONS RESPECTIVELY THEIR ROLE WITH THE COMMISSIONS WOULD BE TO PROVIDE EXPERT ADVICE ON REGULATORY MATTERS AND THEY WOULD ENJOY AN UNPRECEDENTED DEGREE OF ACCESS TO COMMISSION PROCEEDINGS NONGOVERNMENTAL ORGANIZATIONS WOULD BE ABLE TO USE THIS PRIVILEGED POSITION TO CLAMOR FOR TRADE RESTRICTIONS ACTING AS AN INSIDE LOBBY ON BEHALF OF DOMESTIC INDUSTRIES SEEKING PROTECTION FROM THEIR COMPETITORS NAFTA WOULD ALSO IMPEDE ONE OF THE MOST IMPORTANT FUNCTIONS OF FREE TRADE WHICH IS TO FOSTER COMPETITION AMONG GOVERNMENTS FOR CREATING MORE FAVORABLE ECONOMIC CONDITIONS NATIONS LIKE MEXICO ARGENTINA AND CHILE HAVE BEEN LIBERALIZING THEIR ECONOMIES BY DEREGULATING OVERBURDENED SECTORS OF THE ECONOMY VARIOUS PROVISIONS IN NAFTA HOWEVER EXPRESSLY FORBID SUCH DEREGULATION ARTICLE 1114 FOR EXAMPLE PROHIBITS THE RELAXATION OF ENVIRONMENTAL REGULATIONS IN ORDER TO ATTRACT FOREIGN INVESTMENT IN FACT ARTICLE 756 COMMITS THE SIGNATORIES TO UPWARD HARMONIZATION OF REGULATIONS THESE PROVISIONS WILL NOW BE VIGOROUSLY ENFORCED BY NAFTA'S SUPRANATIONAL ENTITIES FREE TRADE SHOULD BE SIMPLE IT SHOULD NOT REQUIRE ENDLESS LOBBYING LITIGATION AND NEGOTIATING ANY COUNTRY THAT WANTS FREE TRADE MUST MERELY ABOLISH ITS OWN TRADE BARRIERS AS MEXICO HAS ALREADY BEEN DOING FOR SEVERAL YEARS NOW HOPELESSLY COMPLEX TRADE AGREEMENTS THAT RESTRICT FREE EXCHANGE ARE NOT REPAIRED BY THE PRESENCE OF FREE TRADE RHETORIC NAFTA'S PROPONENTS ARE INSPIRED MORE BY WHAT THEY HOPE IT COULD BE THAN BY WHAT IT REALLY IS MR SHEEHAN IS A RESEARCH ASSOCIATE AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON 9309090112 930909 CAMPBELL SOUP CO'S WEISE COMFORTABLE' WITH PROFIT ESTIMATES CAMDEN NJ FRANK E WEISE CHIEF FINANCIAL OFFICER OF CAMPBELL SOUP CO SAID HE WAS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE FOOD COMPANY WOULD EARN BETWEEN 46 CENTS AND 51 CENTS FOR THE FISCAL FOURTH QUARTER CAMPBELL IS EXPECTED TO REPORT TOMORROW THE FINANCIAL RESULTS FOR THE YEAR AND QUARTER ENDED AUG 1 IN THE YEAREARLIER QUARTER THE COMPANY HAD PROFIT OF 44 CENTS A SHARE OR 1092 MILLION ANALYSTS ESTIMATE CAMPBELL'S OPERATING PROFIT FOR FISCAL 1993 AT ABOUT 224 TO 229 A SHARE BUT NET INCOME IS EXPECTED TO BE FIVE CENTS A SHARE BECAUSE OF ABOUT 220 A SHARE IN REPORTED ONETIME RESTRUCTURING AND ACCOUNTING CHARGES IN FISCAL 1992 CAMPBELL EARNED 195 A SHARE OR 4905 MILLION DAVID W JOHNSON PRESIDENT AND CHIEF EXECUTIVE OFFICER EXPRESSED CONFIDENCE THAT ON AN OPERATING BASIS CAMPBELL'S PERSHARE EARNINGS WOULD INCREASE BY 12 TO 15 IN FISCAL 1994 AND SAID HE WAS COMFORTABLE WITH ANALYSTS' EXPECTATIONS OF EARNINGS OF 242 TO 252 A SHARE HE SAID NEXT YEAR'S HIGHER TAX RATE WOULD COST CAMPBELL A NICKEL A SHARE IN EARNINGS IN THE YEAR JUST ENDED MR WEISE SAID CAMPBELL POSTED STRONG UNIT VOLUME GAINS HE SAID TOTAL SALES ROSE 3 FOR THE YEAR SOUP SHIPMENTS ALSO GREW 3 MR WEISE SAID THAT BECAUSE THE FISCAL 1993 QUARTER WAS A WEEK SHORTER THAN THE 1992 PERIOD VOLUME WAS DOWN FOR MOST PRODUCT LINES MR JOHNSON SAID CAMPBELL'S FROZEN FOOD BUSINESS IN THE UNITED KINGDOM AND ITS PEPPERIDGE FARM COOKIE BUSINESS IN THE US SHOWED PROFIT IMPROVEMENT IN THE QUARTER STILL THE WEAK ECONOMY CONTINUED TO DRAG ON THE UPSCALE COOKIE BUSINESS MR JOHNSON CONFIRMED THAT CAMPBELL WAS SCOUTING FOR ACQUISITIONS SOME ANALYSTS EXPECT A SIZABLE OVERSEAS ACQUISITION SOON BY CAMPBELL WITH INTEREST RATES LOW AND CAMPBELL'S STRONG CASH FLOW MR JOHNSON SAID WE CAN VERY EASILY GET OUR HANDS ON A LOT OF MONEY 1 BILLION TO 2 BILLION IF THE OPPORTUNITY COMES WE WILL NOT HESITATE TO STRIKE 9309090111 930909 MARKETING & MEDIA QVC NETWORK PACT WITH HOME SHOPPING UNDER CLOSER SCRUTINY WASHINGTON THE FEDERAL TRADE COMMISSION EXPANDING A REVIEW INTO THE PROPOSED COMBINATION OF QVC NETWORK INC AND HOME SHOPPING NETWORK INC HAS ASKED FOR ADDITIONAL INFORMATION FROM QVC SECURITIES ANALYSTS HAD LONG PREDICTED THE FTC WOULD DELVE MORE DEEPLY INTO ANTITRUST ISSUES ARISING FROM THE 14 BILLION PROPOSAL WHICH WOULD MERGE THE TWO COMPANIES THAT VIRTUALLY COMPRISE THE 25 BILLION TELEVISION HOMESHOPPING INDUSTRY ONE ANALYST CRAIG BIBB OF PAINEWEBBER SAID HE RATES THE CHANCES OF FTC APPROVAL AT 75 OR MAYBE 55 IT'S NOT A SLAM DUNK QVC BASED IN WEST CHESTER PA SAID IT WILL PROMPTLY RESPOND TO THE REQUEST AND THAT IT CONTINUES TO BELIEVE THE PROPOSED TRANSACTION COMPLIES WITH ANTITRUST LAWS THE FTC'S INITIAL REVIEW WAS SCHEDULED TO RECESS YESTERDAY BUT NOW WILL RESUME FOR 20 MORE DAYS AFTER QVC'S RESPONSE TO THE REQUEST FOR EXTRA DATA HOME SHOPPING IS BASED IN ST PETERSBURG FLA A QVC SPOKESMAN SAID THE COMPANY HAD NO ADDITIONAL COMMENT 9309090110 930909 SEAGRAM RENEWS BUYBACK PLAN MONTREAL SEAGRAM CO RENEWED ITS AUTHORIZATION TO BUY BACK UP TO 5 OF ITS SHARES OUTSTANDING AS OF SEPT 27 THAT WOULD REPRESENT ABOUT 186 MILLION SHARES OUT OF 3726 MILLION SHARES OUTSTANDING AS OF AUG 31 THE BEVERAGE COMPANY SAID UNDER THE PREVIOUS SHARE REPURCHASE PROGRAM WHICH EXPIRES SEPT 24 35 MILLION COMMON SHARES WERE REPURCHASED AS OF AUG 31 AT AN AVERAGE PRICE OF 25383 9309090109 930909 LEISURE & ARTS FILM AMY TAN'S THE JOY LUCK CLUB' BY JULIE SALAMON THE JOY LUCK CLUB AMY TAN'S 1989 MULTIGENERATIONAL NOVEL ABOUT FOUR CHINESE IMMIGRANTS TO AMERICA AND THEIR CHINESEAMERICAN DAUGHTERS DIDN'T SEEM LIKE GOOD MOVIE MATERIAL BESIDES MOVING BACK AND FORTH IN TIME THE BOOK TELLS MANY SEPARATE STORIES TOO MANY STORIES FOR THE LIMITED SCOPE OF CONVENTIONAL MOVIE NARRATIVE YET A MOVIE HAS BEEN MADE A VERY AFFECTING MOVIE THE JOY LUCK CLUB DOESN'T GRACEFULLY OVERCOME THE INHERENT AWKWARDNESS OF JUMPING FROM STORY TO STORY BUT THE STORIES ARE STRONG AND RELAYED WITH NICE DETAIL AND MUCH FEELING IN SOME WAYS THE UNTIDY TRANSITIONS UNDERSCORE THE EMOTIONAL TRUTH THAT RUNS THROUGH THE PICTURE THE MOVIE BEGINS IN THE PRESENT AT A BON VOYAGE PARTY FOR JUNE A YOUNG WOMAN WHOSE MOTHER DIED A FEW MONTHS EARLIER HER MOTHER WAS A MEMBER OF THE JOY LUCK CLUB FOUR WOMEN WHO MET WEEKLY FOR 30 YEARS TO PLAY MAHJONG THE FOUR WOMEN WERE ORIGINALLY FROM CHINA ALL FOUR HAVE DAUGHTERS THE MOTHERS HAD SURVIVED ENORMOUS HARDSHIPS PUT IN THEIR PATH BY TRADITION AND POLITICS TRAGEDIES REALLY FORCED SEPARATION FROM PARENTS AND CHILDREN ABUSIVE HUSBANDS UPROOTEDNESS DEATH THE DAUGHTERS HAVE LED MUCH SOFTER LIVES THEIR BIGGEST DIFFICULTY IS TRYING TO UNDERSTAND THEIR MOTHERS NOT EASY BECAUSE THE MOTHERS HAVEN'T REVEALED MUCH ABOUT THE PAST BUT NOT TRAGIC THE BON VOYAGE PARTY IS THE ANCHOR FOR ALL THE STORIES AS THE MOVIE FLASHES BACK CHARACTER BY CHARACTER TO THE DISTANT PAST OF THE MOTHERS' YOUTH TO THE MORE RECENT PAST OF THE DAUGHTERS' CHILDHOOD AND TO THE PRESENT DIRECTOR WAYNE WANG WORKING FROM A SCRIPT BY MS TAN AND SCREENWRITER RONALD BASS ORCHESTRATES ALL OF THIS WITH REMARKABLE CLARITY THE CHARACTERS MAINTAIN THEIR INDIVIDUALITY BUT ALSO BECOME PART OF A COLLAGE THE MOTHERS REPRESENT A GENERATION OF IMMIGRANTS FORCED AS ADULTS TO ALTER ENTIRELY THEIR IDEAS ABOUT LIFE AND WHAT THEIR EXPECTATIONS COULD BE AND SHOULD BE THE DAUGHTERS ARE CONNECTED TO ONE ANOTHER BY THE COMMON MYSTERY OF THEIR MOTHERS WHO WERE RAISED IN A CULTURE THE DAUGHTERS CAN ONLY IMAGINE A PROBLEM PERPETUATED BY THEIR MOTHERS' EARNEST AND CONFLICTING DESIRE TO HAVE THEIR DAUGHTERS SUCCEED BY AMERICAN STANDARDS WHILE RETAINING RESPECT FOR SOME BUT NOT ALL OF CHINESE TRADITION NOT SURPRISINGLY THE DAUGHTERS ARE LESS INTERESTING BECAUSE THEY ARE MORE FAMILIAR AS CHILDREN IN AMERICA THEY WORRIED ABOUT PIANO RECITALS AND CHESS COMPETITIONS AS ADULTS THEY COPE LIKE OTHER WOMEN HERE WITH HUSBAND PROBLEMS AND JOBS THEY BECOME INTERESTING ONLY WHEN THEY CONFRONT THEIR MOTHERS AND WE START TO LEARN ABOUT THEIR EARLIER EXOTIC LIVES THAT HISTORY ADDS A LAYER OF COMPLICATION TO THE DAUGHTERS' CONTEMPORARY YUPPIE ANGST WE LEARN THAT HISTORY THROUGH FLASHBACKS TO PRECOMMUNIST CHINA FLASHBACKS THAT ARE THE MOST EVOCATIVE AND THE MOST VISUALLY ARRESTING PARTS OF THE FILM MR WANG WHO HAS MADE SEVERAL ENGAGING PICTURES ABOUT CHINESEAMERICAN LIFE HANDLES THESE PERIOD PIECES WITH APPROPRIATE HUMOR AND HORROR DEPENDING ON WHAT THE SCENE REQUIRES THE MOVIE IS NEVERTHELESS VAGUE ON HISTORICAL DETAIL THAT GOES BEYOND THE PERSONAL WHICH SEEMS OKAY THE PAST OF THE JOY LUCK CLUB MEMBERS HAS BEEN GIVEN THE MYTHOLOGICAL TONE OF A FABLE TOLD THE WAY FAMILY HISTORIES TEND TO BE TOLD SET APART FROM THE PARTICULARS OF POLITICS THE WOMEN REMEMBER CUSTOMS THAT CAUSED THEM PAIN ARRANGED MARRIAGES FOR EXAMPLE FLEEING THEIR HOMES DURING AN UNSPECIFIED POLITICAL UPHEAVAL THE FILMMAKERS WITH THEIR SUPERB CAST MAKE US SEE WHAT UNUSUAL HYBRIDS THE JOY LUCK CLUB MOTHERS ARE BY THE END THE PAST INFORMS THE PRESENT SADLY AND POWERFULLY THE WEDDING BANQUET IS A MULTIPLY TRENDY ROMANTIC COMEDY ABOUT TAIWANESE IMMIGRANTS TO AMERICA ANG LEE A TAIWANESE HIMSELF WHO MOVED TO THE US AS AN ADULT DIRECTED PRODUCED AND COWROTE THIS AMUSING AND TENDER LITTLE PICTURE ABOUT A YOUNG MAN NAMED WAI TUNG WHO WANTS TO LIVE THE WAY HE CHOOSES WITHOUT OFFENDING HIS PARENTS HE'S MANAGED EVEN THOUGH HE'S GAY AND HIS PARENTS ARE CONSERVATIVE PROSPEROUS TAIWANESE HIS FATHER WAS A MILITARY MAN BECAUSE HE LIVES IN NEW YORK AND THEY LIVE IN TAIWAN TROUBLE LOOMS WHEN WAI TUNG'S LOVER SUGGESTS THAT WAI TUNG GET HIS PARENTS OFF HIS BACK BY MARRYING A FEMALE TAIWANESE IMMIGRANT THEY KNOW WHO NEEDS A GREEN CARD WAI TUNG IS A NATURALIZED AMERICAN CITIZEN SHE HAPPENS TO BE PRETTY AND CHARMING SO WHEN WAI TUNG'S PARENTS SHOW UP FOR THE WEDDING THEIR NEW DAUGHTERINLAW PLEASES THEM A LITTLE TOO MUCH FOR THEIR SON'S COMFORT THE PLOT RAISES THE KIND OF COMPLICATIONS THAT USED TO DEVELOP IN DORIS DAYROCK HUDSON MOVIES OR WHICH MIGHT HAVE IF MR HUDSON HAD BEEN OPENLY GAY BUT THE BEST PARTS OF THE PICTURE ARE SOCIOLOGICAL THE DETAILS OF THE EXTRAVAGANT WEDDING BANQUET THE RELATIONSHIP BETWEEN WAI TUNG AND HIS PARENTS YOU FEEL THAT CHINA IS NEAR VIDEO TIP POOR NANCY KWAN BACK WHEN SHE WAS A YOUNG ACTRESS THERE WASN'T MUCH OUT THERE FOR ASIAN AMERICAN ACTRESSES SHE MADE DO WITH WHAT SHE COULD GET MOST PROMINENTLY FLOWER DRUM SONG AND THE WORLD OF SUZIE WONG 9309090108 930909 LETTERS TO THE EDITOR CAN YOU BELIEVE IT YOUR AUG 17 PIECE WHITE HOUSE INDICATES HEALTH REFORM WON'T CALL FOR NEW TAXES WITH IT'S DEWEYEYED HANDCLASPING BELIEF IN MR CLINTON'S HEROIC SURELY TO GOODNESS WE CAN SOLVE THIS PROBLEM STANCE ON HEALTH INSURANCE AND HIS THREAT OF DIRE CONSEQUENCES IF HIS HEALTH CARE PLAN DOESN'T SUCCEED BROUGHT TO MIND TWO PASSAGES THE FIRST IS MALCOM MUGGERIDGE'S OBSERVATION THAT THE 20TH CENTURY IS AN AGE OF ALMOST INCONCEIVABLE CREDULITY IN WHICH CRITICAL FACULTIES ARE STIFLED BY A PLETHORA OF PUBLIC PERSUASION AND INFORMATION SO THAT LITERALLY ANYONE WILL BELIEVE ANYTHING THE SECOND IS SEMIATTRIBUTABLE TO OSCAR WILDE WHEN THE GODS WISH TO PUNISH US THEY MAKE US BELIEVE OUR OWN ADVERTISING 9309090107 930909 POLITICS & POLICY CONSUMERS INCREASED USE OF CREDIT IN JULY AT 81 ANNUAL RATE WASHINGTON AMERICANS INCREASED THEIR USE OF CREDIT IN JULY SUGGESTING THAT CONSUMERS ARE WILLING TO ADD TO THEIR DEBT LOADS DESPITE A WEAK JOB MARKET THE FEDERAL RESERVE SAID CONSUMER INSTALLMENT CREDIT ROSE BY 51 BILLION IN JULY OR AT A 81 ANNUAL RATE THAT COMPARES TO AN INCREASE AT A 6 RATE IN JUNE AND CONTINUES A TREND OF STEADY INCREASES SINCE DECEMBER THE FIGURES SUGGEST THAT AFTER TWO YEARS OF TIGHTENING THEIR CREDIT BELT AMERICANS ARE WILLING AND IN A POSITION TO BORROW AGAIN BANKS HAVE ALSO NOTED AN INCREASE IN CONSUMER LENDING ACTIVITY ALL CATEGORIES OF CREDIT ROSE IN JULY REVOLVING CREDIT WHICH INCLUDES BANK AND DEPARTMENT STORE CARDS ROSE THE MOST INCREASING AT A 128 RATE AUTOMOBILE LOANS WERE UP AT A 92 ANNUAL RATE AFTER A 42 RISE IN JUNE A CATCHALL CATEGORY WHICH INCLUDES LOANS FOR SCHOOLS MOBILE HOMES AND TAXES ROSE AT A 14 RATE AFTER A 94 JUMP THE MONTH BEFORE HOME EQUITY LINES OF CREDIT AREN'T INCLUDED IN THE FED'S FIGURES WHICH HAVE ALL BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR JULY IN BILLIONS AND PERCENTAGE CHANGES FROM JUNE AT AN ANNUAL RATE 9309090106 930909 NEW VALLEY IS IN PACT TO GET 50 MILLION FROM ELECTRONIC DATA UPPER SADDLE RIVER NJ NEW VALLEY CORP WHICH IS IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH ELECTRONIC DATA SYSTEMS CORP THAT CALLS FOR THE COMPUTER SERVICES COMPANY TO INJECT 50 MILLION IN CASH INTO NEW VALLEY FOR A MINORITY EQUITY INTEREST IN THE REORGANIZED COMPANY NEW VALLEY THE PARENT OF WESTERN UNION FINANCIAL SERVICES INC SAID THE AGREEMENT WILL FORM THE FOUNDATION OF A REORGANIZATION PLAN THAT WILL ENABLE THE COMPANY TO SETTLE ITS OUTSTANDING CREDITOR OBLIGATIONS AND EMERGE FROM BANKRUPTCY PROTECTION EARLY NEXT YEAR WESTERN UNION WHICH PROVIDES WORLDWIDE MONEY TRANSFER AND BILL PAYMENT SERVICES ISN'T UNDER CHAPTER 11 BANKRUPTCY PROTECTION THE REORGANIZATION PLAN WHICH NEW VALLEY PLANS TO FILE SOON ALSO CALLS FOR THE COMPANY TO RAISE AT LEAST 225 MILLION THROUGH THE PUBLIC AND PRIVATE SALE OF 10YEAR UNSECURED NOTES IN 1994'S FIRST QUARTER FOLLOWING BANKRUPTCYCOURT CONFIRMATION OF THE REORGANIZATION PLAN UNDER THE PROPOSED PLAN THE BALANCE OF THE EQUITY IN THE REORGANIZED COMPANY WILL BE DISTRIBUTED AS NEW COMMON STOCK TO HOLDERS OF NEW VALLEY'S CLASS A SENIOR PREFERRED SHARES NEW VALLEY'S EXISTING CLASS B CONVERTIBLE PREFERRED SHARES AND COMMON SHARES WILL BE EXTINGUISHED THE PLAN WAS OUTLINED IN FEDERAL BANKRUPTCY COURT IN NEWARK NJ DURING A HEARING ON NEW VALLEY'S REQUEST FOR AN EXTENSION OF THE PERIOD IN WHICH IT RETAINS EXCLUSIVE RIGHT TO FILE A REORGANIZATION PLAN THE COURT EXTENDED THE EXCLUSIVITY PERIOD TO NOV 26 NEW VALLEY SAID IT WILL SEEK THE APPROVAL OF CREDITORS AND THE COURT BY YEAR'S END EDS A DALLASBASED UNIT OF GENERAL MOTORS CORP HAS BEEN PROVIDING MANAGEMENT INFORMATION SERVICES TO NEW VALLEY AND ITS SUBSIDIARIES FOR THE PAST EIGHT YEARS THE AGREEMENT IN PRINCIPLE ALSO CALLS FOR EDS TO ENTER INTO AN EXPANDED CONTRACTUAL ARRANGEMENT 9309090105 930909 LEISURE & ARTS MOUNTAIN TOWN GAMBLES ON OPERA AND WINS BY MARJ CHARLIER CENTRAL CITY COLO OPERA IN THIS TINY HISTORIC MOUNTAIN TOWN HAS NEVER BEEN STUFFY PATRONS ARRIVE IN ANYTHING FROM BLUE JEANS TO EVENING GOWNS THE TINY OPERA HOUSE SEATS ARE SO CLOSE TOGETHER THAT THEY COMPEL CAMARADERIE AND TOLERANCE AMONG STRANGERS AND NO ONE NEEDS SUPERTITLES TO FOLLOW THE LIBRETTO OPERAS HERE HAVE ALWAYS BEEN PERFORMED IN ENGLISH YES THE ATMOSPHERE IS CASUAL BUT EVEN IN THESE HILLS OPERAGOERS HAVE STANDARDS THEY DIDN'T WANT TO SHARE CENTRAL CITY WITH SLOT MACHINES AND BLACKJACK TABLES SO WHEN CENTRAL CITY BECAME ONE OF THREE HISTORIC COLORADO MOUNTAIN TOWNS TO ALLOW SMALLSTAKES GAMBLING OPERA PATRONS FLED WHILE GAMBLING WAS DIFFICULT FOR US IT WAS EVEN MORE DIFFICULT FOR OUR PATRONS TO ACCEPT SAYS OPERA PRESIDENT NANCY PARKER TICKET SALES FELL 15 THE FIRST DROP IN 10 YEARS AND THE OPERA COMPANY WAS ON THE VERGE OF LOSING ITS ALREADY TENUOUS GRIP ON SOLVENCY THE DROP IN PATRONAGE THREATENED NOT ONLY THE FOURTHOLDEST OPERA COMPANY IN THE COUNTRY BUT ALSO ITS NATIONALLY RENOWNED APPRENTICE PROGRAM NEVERTHELESS THE CENTRAL CITY OPERA HOUSE ASSOCIATION WHICH RUNS THE OPERA SEASON WAS DETERMINED NOT TO LET THE OPERA TRADITION HERE DIE THE CENTRAL CITY OPERA HOUSE HAS STOOD ALONG A NARROW WINDING STREET AT A DIZZY ELEVATION OF 8450 FEET ABOVE SEA LEVEL FOR 114 YEARS AND OPERAS HAVE BEEN PERFORMED HERE SINCE 1932 WITH ONLY TWO INTERRUPTIONS WORLD WAR II AND IN 1982 WHEN THE COMPANY WAS IDLE COMPLETELY TO SAVE THE OPERA THE ASSOCIATION LAUNCHED AN UNCHARACTERISTICALLY HUMOROUS ADVERTISING CAMPAIGN LEASED PARKING SPACES FOR PATRONS AND RENTED BUSES TO BRING ITS AUDIENCE UP THE MOUNTAIN PERHAPS MOST IMPORTANTLY HOWEVER THE STAFF DECIDED TO SEEK A NEW AUDIENCE TO REPLACE THE DESERTERS MOST OF THOSE PEOPLE WHO LEFT WILL NEVER COME BACK SAYS JOHN MORIARTY CREATIVE DIRECTOR OUR MISSION IS TO FIND A NEW AUDIENCE THERE IS MUCH FOR THOSE NEWCOMERS TO DISCOVER HERE THE OPERA HOUSE ITSELF IS A HISTORICAL GEM WITH EXCELLENT ACOUSTICS AND A STATELY 19THCENTURY STYLE KNOWN AS BONANZA VICTORIAN IT WAS BUILT IN 1878 BY WELSH AND CORNISH MINERS WHO NEEDED A PLACE FOR THEIR CHORAL SOCIETIES TO PERFORM THE TOWN WAS WEALTHY THEN FLOATING ON A SEA OF GOLD AND SILVER AND THE 757SEAT THEATRE SPORTED FOURFOOTTHICK WALLS A CRYSTAL CHANDELIER AND CEILING FRESCOES AND WALL PANELS PAINTED BY SAN FRANCISCO ARTIST JC MASSMAN THE HOUSE HOSTED SINGERS AND OPERA COMPANIES PASSING THROUGH CENTRAL CITY ON WHAT WAS CALLED THE SILVER CIRCUIT IT WOUND THROUGH OTHER SIMILAR OPERA HOUSES IN LEADVILLE DENVER ASPEN SALT LAKE CITY AND SAN FRANCISCO ALL THESE OPERA HOUSES' FORTUNES SANK WITH THE PRICE OF SILVER AND CENTRAL CITY'S ALONG WITH MANY OTHERS CLOSED IN 1896 THE CENTRAL CITY HOUSE WAS CONVERTED INTO A SILENT MOVIE THEATRE FROM 1910 TO 1927 BEFORE CLOSING AGAIN ITS PLASTER WALLS CRUMBLED AND THE CEILING BEGAN TO LEAK FROM 1929 TO 1932 A HANDFUL OF PHILANTHROPIC COLORADO WOMEN RAISED MONEY TO RESTORE THE OPERA HOUSE SELLING CHAIRS IN THE AUDIENCE FOR 100 EACH IN JULY 1932 IT REOPENED WITH A PRODUCTION OF CAMILLE THE ALEXANDRE DUMAS PLAY STARRING LILLIAN GISH AND RAYMOND HACKET SINCE THEN HELEN HAYES MAE WEST JULIE HARRIS BEVERLY SILLS AND WALTER HUSTON HAVE ALL APPEARED IN CENTRAL CITY OPERA PRODUCTIONS RANGING FROM SUCH STAPLES AS AIDA TO DRAMATIC PRODUCTIONS LIKE OTHELLO THE OPERA WAS SAVED AND IT SAVED CENTRAL CITY WITHOUT LA BOHEME AND THE ELIXIR OF LOVE THE TOWN WOULD HAVE HAD LITTLE TO OFFER EXCEPT A FEW MINERAL SHOPS FOR ROCK HOUNDS AND A COUPLE OF SMALL MINE TOURS THE TOWN ATTEMPTED TO ATTRACT SUMMER TOURISTS TO ITS HANDFUL OF GIFT SHOPS AND ICE CREAM PARLORS WITH JAZZ FESTIVALS AND ANNUAL HISTORIC CELEBRATIONS BUT EVERINCREASING SUMMERTIME COMPETITION FROM LOCAL SKI RESORTS MADE IT ALL THE MORE DIFFICULT FINALLY THE CITY EMBRACED GAMBLING AS ITS SALVATION AND STATE VOTERS APPROVED THE IDEA IN LATE 1990 WHEN GAMBLING FIRST OPENED IN FALL 1991 THE OPERA'S SUMMER SEASON WAS ALREADY OVER BUT THE NEXT SUMMER TOURISTS CURIOUS DENVERITES AND CONSTRUCTION TRAFFIC CLOGGED THE ONCEQUIET STREETS THE TOWN'S ONLY HOTEL BECAME A GAMBLING HALL LOCAL PARKING WAS INADEQUATE AND THE NEARBY GAMBLING ESTABLISHMENTS' GARISH DISPLAYS OF FLASHING LIGHTS AND SLOT MACHINES CLASHED WITH THE HISTORIC LOOK AND FEEL OF OLD CENTRAL CITY MANY OPERA PATRONS SHUNNED THE NEW GLITZ AND CONTRIBUTORS CLOSED THEIR PURSES THEY WERE MORALLY OPPOSED TO GAMBLING SAYS THE COMPANY'S COMMUNICATIONS DIRECTOR JOANN SIMS WHO QUICKLY COMMISSIONED A SURVEY TO FIND OUT WHY THEY HAD ABANDONED THE OPERA THEY WANTED TO KNOW HOW WE COULD HAVE LET THIS HAPPEN IN FACT MANY FORMER OPERAGOERS FELT THE COMPANY HAD SOLD OUT TO GAMBLING WHICH IN A WAY IT HAD BY LEASING A HISTORIC BUILDING TO A GAMBLING OPERATOR FOR YEARS THE CENTRAL CITY OPERA HOUSE ASSOCIATION HAD MAINTAINED THE OLD TELLER HOUSE NEXT TO THE OPERA HOUSE SO PATRONS COULD STOP FOR DINNER OR COFFEE BEFORE HEADING BACK DOWN THE MOUNTAIN THE BUILDING WAS LITERALLY FALLING DOWN BUT THE OPERA GROUP NEVER HAD ENOUGH MONEY TO FIX IT ALTHOUGH THE OPERA STAFF VEHEMENTLY OPPOSED GAMBLING THEY LEASED THE TELLER HOUSE TO TIVOLINO HOLDING AG A GAMBLING AND RESORT CONCERN FROM SWITZERLAND IN RETURN FOR ABOUT 8 MILLION IN REPAIRS SUDDENLY GAMBLING WAS RIGHT NEXT DOOR TO THE OPERA HOUSE AND TOUR BUSES PARKED IN FRONT OF ITS ARCHED DOORWAYS AFTER A ROCKY FIRST YEAR THOUGH THE TELLER HOUSE ARRANGEMENT HAS WORKED OUT WELL THE OPERA PERFORMERS NOW HAVE BETTER ROOMS IN THE TELLER HOUSE FOR RECITALS AND PATRONS HAVE BETTERQUALITY FOOD AND A NICER PLACE TO RELAX BEFORE AND AFTER PERFORMANCES AND THE TELLER HOUSE HAS BEEN SAVED FROM RUIN WE REGRET THAT THERE'S GAMBLING AT ALL SAYS MS PARKER THE COMPANY'S PRESIDENT BUT WE'VE ALL SETTLED DOWN AND ACCEPTED THE FACT INSTEAD OF TRYING TO WIN THOSE PATRONS BACK THE OPERA COMPANY DECIDED TO TRY AND WOO A NEW AUDIENCE ITS ADVERTISING CAMPAIGN TURNED TO YOUNGER SEXIER THEMES THAT STRESSED THE COMPANY'S EFFORTS TO SOLVE CENTRAL CITY'S NEW PROBLEMS COME UP TO CENTRAL CITY FOR ROMANCE AND WE'LL GIVE YOU A PLACE TO PARK SAID ONE ADVERTISEMENT WHEN FAUST WAS STAGED LAST YEAR THE ADS ENCOURAGED DENVERITES TO TAKE A BUS RIDE TO HELL A NEW SUPPORT GROUP CALLED OPERAPROS WAS FORMED AS WELL TO INTRODUCE YOUNG PROFESSIONALS TO THE OPERA THE GROUP ATTENDED A COLORADO ROCKIES BASEBALL GAME HOSTING A TAILGATE PARTY FOR ROCKIES OWNER JERRY MCMORRIS AND HEARING JOYCE CAMPANA THIS YEAR'S STAR OF CENTRAL CITY'S CARMEN SING THE NATIONAL ANTHEM THE GROUP NOW HAS 60 MEMBERS FAR SHORT OF THE 240 OR SO REGULAR PATRONS LOST BUT OPERAPROS PRESIDENT PATRICIA ULLERY IS OPTIMISTIC WE'RE BUILDING AN ORGANIZATION AND BRINGING IN PEOPLE WHO HAVE NEVER GONE TO THE OPERA BEFORE SHE SAYS ALTOGETHER THE EFFORTS HAVE RAISED ATTENDANCE ABOUT 9 THIS YEAR COMPARED WITH 1992 CARMEN WAS SOLD OUT FOR THE ENTIRE SEASON AND FALSTAFF AND ROSE MARIE WERE WELLATTENDED THE OPERA'S EXECUTIVES ARE CAUTIOUSLY BETTING THE COMPANY HAS TURNED THE CORNER AND WILL SURVIVE IT'S STILL EARLY SAYS MS PARKER BUT I THINK WE'RE PRETTY COMMITTED TO THE FACT WE'RE HERE TO STAY MS CHARLIER IS A REPORTER FOR THE JOURNAL IN DENVER 9309090104 930909 LEISURE & ARTS BOOKSHELF GOD AND MAN AT SCHOOL BY RITA KRAMER IN THE CONTINUING SCHOOL WARS NO ISSUE HAS BEEN MORE DIVISIVE THAN RELIGION IN THE PUBLIC SCHOOLS IN BATTLEGROUND POSEIDON PRESS 363 PAGES 24 STEPHEN BATES TELLS THE STORY OF WHAT THE BOOK'S SUBTITLE CALLS ONE MOTHER'S CRUSADE THE RELIGIOUS RIGHT AND THE STRUGGLE FOR CONTROL OF OUR CLASSROOMS THE CASE THE MEDIA WOULD LABEL SCOPES II BEGAN IN THE EAST TENNESSEE TOWN OF CHURCH HILL IN THE FALL OF 1983 WHEN VICKI FROST TOOK EXCEPTION TO HER DAUGHTER'S SIXTHGRADE READING TEXT PUBLISHED BY HOLT RINEHART & WINSTON EVANGELICAL PROTESTANTS THE FROSTS BELIEVED LITERALLY IN THE BIBLE AS REVEALED TRUTH MS FROST ALSO BELIEVED THAT THERE WERE FORCES CONSPIRING TO CORRUPT THAT BELIEF THROUGH THE SPREAD OF SECULAR HUMANISM IN HER SOUTHERN APPALACHIA COMMUNITY MS FROST'S BELIEFS WERE NOT UNIQUE HAWKINS COUNTY WAS SOLIDLY FUNDAMENTALIST BIBLEREADING AND PRAYER DESPITE SUPREME COURT PROHIBITIONS WERE STILL ROUTINELY PART OF THE SCHOOL DAY YET THE COMMUNITY SOON SPLIT INTO TWO BITTER CAMPS WHEN MS FROST AND A FEW OTHER LIKEMINDED PARENTS HAVING FAILED TO GET THEIR CHILDREN EXCUSED FROM READING THE HOLT BOOKS SUED THE LOCAL SCHOOL BOARD THE RESULTING CASE MOZERT VS HAWKINS COUNTY BOARD OF EDUCATION CHARGED THAT THE HOLT READERS VIOLATED THE PLAINTIFF'S RELIGIOUS BELIEFS IN THEIR CHALLENGE TO LOCAL SCHOOL AUTHORITIES MS FROST AND THE OTHER PARENTS WHO BACKED HER SUIT ENLISTED THE HELP OF CONCERNED WOMEN FOR AMERICA CWA AN ORGANIZATION FORMED IN 1979 TO OPPOSE ABORTION GAY RIGHTS PORNOGRAPHY THE ERA AND OTHER THREATS TO CHRISTIAN PRINCIPLES IN AMERICAN LIFE THE OTHER SIDE SOON FOUND ITS OWN GROUP OF SUPPORTERS TV PRODUCER NORMAN LEAR'S PEOPLE FOR THE AMERICAN WAY PAW IN MOZERT PAW FOUND THE COURT CASE IT HAD BEEN LOOKING FOR TO CHALLENGE THE GROWING POLITICAL POWER OF THE RELIGIOUS RIGHT THE CRUX OF THE CASE WAS THE FIRST AMENDMENT'S FREE EXERCISE CLAUSE CONGRESS SHALL MAKE NO LAW RESPECTING AN ESTABLISHMENT OF RELIGION OR PROHIBITING THE FREE EXERCISE THEREOF TO THE CWA PEOPLE SUPPORTING THE MOZERT PLAINTIFFS THEIR FREE EXERCISE HAD BEEN VIOLATED TO THE PAW GROUP THE FUNDAMENTALISTS WERE TRYING TO IMPOSE THEIR RELIGIOUS BELIEFS ON THE SCHOOLS WHAT HAD BEGUN AS A POWER STRUGGLE OVER WHO WAS IN CHARGE OF THE CURRICULUM OF THE HAWKINS COUNTY PUBLIC SCHOOLS EVOLVED AS IT WOUND ITS WAY THROUGH THE COURTS INTO A CONSTITUTIONAL ARGUMENT AIMED AT ESTABLISHING A LEGAL PRECEDENT FOR THE ENTIRE COUNTRY IN THIS STRUGGLE PAW HAD THE EDGE ON CWA THE MEDIA WERE QUICK TO SIDE WITH THE CHAMPIONS OF LIBERAL CAUSES AND TO RIDICULE THE FUNDAMENTALISTS COMPARING THE TRIAL WITH THE 1925 MONKEY TRIAL IN WHICH CLARENCE DARROW HAD DEFENDED THE TEACHING OF EVOLUTION IN THE SCHOOLS DAN RATHER RUSSELL BAKER AND EDITORIAL WRITERS FOR THE WASHINGTON POST AND THE PHILADELPHIA INQUIRER FOUND IT EASY TO DERIDE WHAT SEEMED LIKE AN ATTEMPT AT CENSORSHIP ON THE PART OF CARTOONLIKE BIBLETHUMPERS BUT IF PAW WAS USING THE CASE TO MAKE HEADLINES AND RAISE MONEY ON WHAT ONE LIBERAL ATTENDING THE TRIAL REFERRED TO AS THESE POOR BENIGHTED PEOPLE IN TENNESSEE CWA WAS AFTER PUBLICITY TOO AND HAD NO QUALMS ABOUT USING MS FROST AND HER ALLIES AS THE ISSUE SNOWBALLED BEYOND ANYTHING THE PLAINTIFFS HAD INTENDED THE COMPLEXITIES OF THE CASE WERE LOST IN THE GLEEFUL REPORTING ON THE SPECTACLE OF ENLIGHTENED LIBERALS FACING OFF AGAINST IGNORANT RELIGIOUS EXTREMISTS ACTUALLY AS MR BATES MAKES CLEAR IN HIS BALANCED AND HIGHLY READABLE ACCOUNT OF THE LEGAL PROCEEDINGS THE MOZERT CASE WAS NOT REALLY ABOUT CENSORSHIP THE PLAINTIFFS ASKED ONLY THAT SOME ALTERNATIVE READING MATERIAL BE PROVIDED FOR THEIR OWN CHILDREN OTHER GROUPS LIKE JEHOVAH'S WITNESSES HAD BEEN EXCUSED FROM SCHOOL REQUIREMENTS NOTABLY RECITING THE PLEDGE OF ALLEGIANCE ON THE BASIS OF THEIR RELIGIOUS BELIEFS IN THE VIEW OF THE PLAINTIFFS THE REVISIONS MADE IN TEXTBOOKS TO ACCOMMODATE THE CHAMPIONS OF DIVERSITY NOT ONLY OFFENDED THEIR BELIEFS AND THREATENED THEIR AUTHORITY OVER THEIR OWN CHILDREN BUT ALSO LEFT THEM WHITE FAMILIES IN TRADITIONAL GENDER ROLES OUT OF THE PICTURE ALTOGETHER THEY POINTED OUT THAT WHILE THERE WERE STORIES IN THE READERS ABOUT EVERY OTHER KIND OF RACIAL RELIGIOUS OR ETHNIC GROUP BLACKS HINDUS BUDDHISTS AMERICAN INDIANS THERE WERE AS ONE WITNESS PUT IT NO STORIES ABOUT CHURCHGOERS FAMILIES OR INDIVIDUALS WHO PRAY TO GOD IF EDUCATION COULD BE TAILORED TO MEET THE NEEDS OF THE HANDICAPPED NONENGLISH SPEAKERS TEENAGE PARENTS GAY STUDENTS AND AFRICANAMERICANS THEY ASKED NOT UNREASONABLY WHY NOT CHRISTIANS THE CASE WAS ULTIMATELY DECIDED IN FAVOR OF THE DEFENDANTS THE APPELLATE COURT REASONED THAT MERE EXPOSURE TO THE CONTENTS OF THE HOLT BOOKS REQUIRING NO AFFIRMATION OF BELIEF DID NOT CONSTITUTE A VIOLATION OF THE PLAINTIFF'S RELIGIOUS FREEDOM IN THE END IT'S HARD TO SAY WHO WON AND WHO LOST BY THE TIME THE CASE CAME TO AN END IN 1988 THE CHILDREN OF MS FROST AND THE OTHERS IN THE MOZERT CASE HAD TRANSFERRED TO PRIVATE SCHOOLS SHIELDED FROM WHAT THEIR PARENTS FOUND OBJECTIONABLE THEY LOST THE OPPORTUNITY OF CONFRONTING DIFFERENT POINTS OF VIEW THAT WOULD HAVE HELPED PREPARE THEM FOR CITIZENSHIP IN A PLURALISTIC SOCIETY AND THE PUBLIC SCHOOLS LOST SOME OF THE DIVERSITY THEY OSTENSIBLY SEEK MS KRAMER IS THE AUTHOR OF ED SCHOOL FOLLIES THE MISEDUCATION OF AMERICA'S TEACHERS 9309090103 930909 A DISCOURAGING WORD FOR BABBITT'S RANGE PLAN BY DONALD R LEAL ENVIRONMENTALISTS ARE THRILLED WITH INTERIOR SECRETARY BRUCE BABBITT'S PROPOSALS TO MORE THAN DOUBLE THE FEDERAL GRAZING FEE AND INCREASE GOVERNMENT CONTROL OF GRAZING ENVIRONMENTALISTS REASON THAT IF RANCHERS PAY A FEE CLOSER TO THE RATES PAID ON PRIVATE LAND THE RANCHERS WILL REDUCE THE NUMBER OF LIVESTOCK THEY GRAZE AND RANGE CONDITIONS WILL IMPROVE THE PROBLEM WITH THIS LOGIC IS THAT MR BABBITT'S HIGHER FEE REMAINS COMPLETELY ARBITRARY AS LONG AS THERE IS NO FREE AND OPEN TRADE IN FEDERAL GRAZING PERMITS NO ONE KNOWS WHAT THEIR MARKET VALUE IS GOVERNMENT RESTRICTIONS ON WHO CAN HOLD SUCH PERMITS AND HOW THEY CAN BE USED ARE PREVENTING BETTER RANGE MANAGEMENT FEE INCREASES ASIDE MR BABBITT'S PROPOSALS REDUCE INCENTIVES ON THE PART OF FEDERAL PERMIT HOLDERS TO IMPROVE RANGE CONDITIONS WHEN FEASIBLE HE PLANS FOR EXAMPLE TO NO LONGER CEDE WATER RIGHTS TO PERMIT HOLDERS WHO DIVERT WATER OR DIG WELLS ON PUBLIC LANDS HE ALSO PROPOSES CREATING RESOURCE ADVISORY BOARDS COMPOSED OF A WIDE RANGE OF INTERESTED PARTIES PEOPLE WHO HAVE POLITICAL CLOUT BUT NO ACCOUNTABILITY TO THE PUBLIC IN ESSENCE MR BABBITT THINKS THAT OUTSIDERS GOVERNMENT OFFICIALS ENVIRONMENTALISTS ETC SHOULD HAVE MORE CONTROL THAN THE RANCHER DOES OVER GRAZING LAND IF MR BABBITT REALLY WANTED TO ENSURE RANGE IMPROVEMENT HE WOULD MOVE INSTEAD TOWARD MORE INDIVIDUAL INITIATIVE TWO THINGS ARE NEEDED RIGHTS TO GRAZE SHOULD BE MADE MORE SECURE AND THEY SHOULD BE MADE TRANSFERABLE THAT MEANS THAT THOSE WHO OWN RIGHTS TO GRAZE SHOULD HAVE THEM PERMANENTLY BUT OTHERS SUCH AS ENVIRONMENTAL GROUPS SHOULD BE ALLOWED TO MAKE OFFERS FOR THESE RIGHTS AND ONCE THEY ARE PURCHASED HAVE THE OPTION OF RETIRING THEM CURRENTLY GRAZING PERMITS ARE LEASED WITHOUT COMPETITIVE BIDS AND POTENTIAL PERMIT HOLDERS MUST MEET STRICT ELIGIBILITY REQUIREMENTS SUCH AS BUYING THE ENTIRE RANCH OF SOMEONE WHO HOLDS GRAZING RIGHTS FURTHERMORE PERMIT HOLDERS ARE NOT ALLOWED TO HOLD PERMITS FOR CONSERVATION PURPOSES WITHOUT BEING PENALIZED THE NATURE CONSERVANCY HAS BOUGHT RANCHES IN ARIZONA WITH FEDERAL GRAZING PERMITS ATTACHED BUT WHEN IT TRIED TO RETIRE THEM AN INTERIOR DEPARTMENT ADMINISTRATIVE LAW JUDGE TOOK THEM AWAY WITH SECURE AND TRANSFERABLE PERMITS A RANCHER WOULD BE FREE TO SELL OR LEASE HIS PERMIT TO ANY INDIVIDUAL OR GROUP THAT SEES A BETTER USE FOR THE LAND HE WOULD ALSO BE ENCOURAGED TO INVEST IN IMPROVEMENTS IF THEY WERE ECONOMICALLY FEASIBLE HISTORICALLY THIS HAS BEEN THE CASE ECONOMISTS SUCH AS B DELWORTH GARDNER OF BRIGHAM YOUNG UNIVERSITY AND GARY LIBECAP OF THE UNIVERSITY OF ARIZONA POINT OUT THAT RANCHERS ENJOYED A SENSE OF SECURITY ON THE FEDERAL RANGE FROM THE PASSAGE OF THE 1934 TAYLOR GRAZING ACT THROUGH THE 1960S AND BECAUSE THEY HAD SECURITY RANCHERS INVESTED SUBSTANTIALLY IN RANGE IMPROVEMENTS BUREAU OF LAND MANAGEMENT STATISTICS SHOW THAT DURING THE 1960S GRAZING PERMIT HOLDERS DUG ON AVERAGE 44 OF THE TOTAL WELLS DUG ANNUALLY AND THEY BUILT 30 OF THE FENCES BUT INSECURITY GREW IN THE 1970S AS ENVIRONMENTALISTS APPLIED POLITICAL PRESSURE TO REDUCE GRAZING FROM 1971 TO 1976 PRIVATE INVESTMENT ACCOUNTED FOR ONLY 11 ON AVERAGE OF NEW WELLS AND ONLY 8 OF NEW FENCES AT PRESENT THE BUREAU OF LAND MANAGEMENT CAN INTERFERE ALMOST AT WILL TO REDUCE THE NUMBER OF ANIMALS AN OWNER IS ALLOWED TO GRAZE WHAT HAS MORE BUREAUCRATIC CONTROL ACHIEVED VERY LITTLE ACCORDING TO THE MOST RECENT SURVEY BY THE US GENERAL ACCOUNTING OFFICE WHICH DETERMINED THAT MORE THAN 50 OF THE RANGE REMAINED IN EITHER POOR OR FAIR CONDITION EXACTLY HOW TO MAKE GRAZING RIGHTS TRANSFERABLE AND SECURE IS COMPLEX ONE APPROACH IS FOR THE GOVERNMENT TO HOLD AUCTIONS WHEN PERMITS COME UP FOR RENEWAL THIS WOULD ASSURE A MARKET VALUE FOR EACH PERMIT ANOTHER APPROACH IS TO LET RANCHERS WHO CURRENTLY HOLD THE PERMITS HAVE THE FIRST OPTION TO BUY THE PERMANENT RIGHT THE PRICE OF THE PERMIT WOULD BE THE VALUE THAT TRANSFERABILITY AND SECURITY ADD TO THE RANCH'S APPRAISED VALUE RANCHERS SHOULD ALSO GET CREDIT FOR RANGE IMPROVEMENTS THEY HAVE MADE WHILE SUCH AN APPRAISAL IS SOMEWHAT ARBITRARY IT WOULD GET THE PROCESS STARTED IF THE RANCHER DOESN'T WANT TO PAY THIS AMOUNT THE PERMIT WOULD THEN BE OPEN TO BIDS THE IMPORTANT THING IS TO ENCOURAGE MORE DECISIONS TO BE MADE AT THE LOCAL LEVEL BY PEOPLE WITH A DIRECT STAKE IN THE LONGTERM PRODUCTIVITY OF THE LAND SECURE AND TRANSFERABLE PERMITS NOT MORE POLITICS WOULD HELP ACHIEVE THIS GOAL MR LEAL IS A RESEARCH ASSOCIATE AT THE POLITICAL ECONOMY RESEARCH CENTER IN BOZEMAN MONT 9309090102 930909 TECHNOLOGY EPA PROPOSES EASING GOVERNMENTS' BURDEN IN SAFEWATER LAW WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED A SERIES OF ACTIONS AIMED AT EASING THE BURDEN PLACED ON STATE AND LOCAL GOVERNMENTS BY THE SAFE DRINKING WATER ACT IN A SPEECH BEFORE THE NATIONAL ASSOCIATION OF TOWNS AND TOWNSHIPS EPA ADMINISTRATOR CAROL BROWNER SAID THE SAFEWATER LAW IS BROKEN AND NEEDS TO BE FIXED SHE SAID SOME OF THE PROPOSALS CAN BE IMPLEMENTED IMMEDIATELY WHILE OTHERS WILL REQUIRE CONGRESSIONAL APPROVAL TAKEN TOGETHER THE PROPOSALS WOULD INCREASE FEDERAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS TO ENFORCE FEDERAL DRINKING WATER STANDARDS WHILE LOOSENING THOSE STANDARDS SOMEWHAT PARTICULARLY ON SMALLER COMMUNITIES COMMUNITIES THAT OPT TO INSTITUTE STRICTER DRINKINGWATER PROTECTIONS THAN REQUIRED BY LAW WOULD BE PERMITTED TO DO LESS MONITORING AND TREATMENT SHE SAID FOR EXAMPLE A CITY THAT BUYS LAND SURROUNDING A RESERVOIR TO ELIMINATE THE POSSIBILITY OF CHEMICAL RUNOFF FROM FARMS COULD RECEIVE GREATER REGULATORY LENIENCY FROM THE EPA IN ADDITION SOME SMALL COMMUNITIES WOULD BE ALLOWED TO CHOOSE LESS EXPENSIVE DRINKINGWATER TECHNOLOGIES THAN THOSE REQUIRED OF LARGER SYSTEMS MS BROWNER ALSO SAID THE CLINTON ADMINISTRATION WOULD REINTRODUCE ITS PROPOSAL TO CREATE A 599 MILLION STATE REVOLVING FUND TO ASSIST LOCALITIES IN ENFORCING THE WATER LAW AND SHE PROPOSED A FEDERAL ANNUAL USER FEE OF ABOUT 3 A HOUSEHOLD THAT WOULD BE AVAILABLE TO STATES FOR ADMINISTRATION OF DRINKINGWATER PROGRAMS 9309090101 930909 SEC CHARGES RELATIVES OF CRAZY EDDIE'S ANTAR WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED 11 RELATIVES OF EDDIE ANTAR FORMER HEAD OF CRAZY EDDIE INC OF PROFITING FROM INSIDE INFORMATION ABOUT THE COMPANY AMONG THE FAMILY MEMBERS NAMED IN THE COMPLAINT ARE EIGHT OF MR ANTAR'S NIECES AND NEPHEWS AGED 20 AND YOUNGER THE SEC ALLEGES THAT MR ANTAR SOLD 240000 SHARES OF STOCK ON THEIR BEHALF IN MARCH 1985 FOR A 5 MILLION PROFIT THE SEC IS SEEKING A RETURN OF THE PROFITS THE COMPLAINT FILED IN FEDERAL COURT IN NEWARK NJ ALSO ALLEGES THAT MR ANTAR'S FATHER BROTHER AND BROTHERINLAW MADE PROFITS OF ALMOST 232 MILLION FROM STOCK SALES BETWEEN 1984 AND 1987 MR ANTAR'S FATHER AND BROTHER WORKED FOR THE COMPANY AND HIS BROTHERINLAW OWNED A COMPANY THAT SOLD RECORDS AND TAPES IN CRAZY EDDIE STORES THE SEC ALLEGES THAT MR ANTAR'S RELATIVES WERE AWARE AT THE TIME OF THE SALES THAT THE STOCK PRICE WAS INFLATED AS A RESULT OF FALSE FINANCIAL REPORTS FROM THE COMPANY MR ANTAR AND HIS BROTHER MITCHELL ANTAR WERE CONVICTED OF STOCK FRAUD AND RELATED CHARGES IN JULY ALLEN ANTAR ANOTHER BROTHER NAMED IN THE SEC SUIT WAS ACQUITTED OF CRIMINAL CHARGES SAM M ANTAR EDDIE ANTAR'S FATHER AND A COFOUNDER OF THE CRAZY EDDIE CHAIN ABSOLUTELY DENIES THAT HIS STOCK SALES WERE BASED ON INSIDE INFORMATION SAID HIS LAWYER JOHN J TIGUE JR OF NEW YORK LAWYERS FOR ALLEN ANTAR AND THE REST OF THE ANTAR FAMILY CHARGED BY THE SEC COULDN'T BE REACHED FOR COMMENT 9309090100 930909 WHO'S NEWS TANDEM COMPUTERS NAMES ROEL PIEPER TO UNGERMANN POSTS CUPERTINO CALIF TANDEM COMPUTERS INC SAID IT NAMED ROEL PIEPER A WELLRESPECTED COMPUTER EXECUTIVE WHO LEFT NOVELL INC LAST MONTH TO THE POSTS OF PRESIDENT AND CHIEF EXECUTIVE OF ITS UNGERMANNBASS INC UNIT THE COMPANY ALSO NAMED MR PIEPER 37 YEARS OLD SENIOR VICE PRESIDENT OF TANDEM WHICH SELLS LARGE COMPUTERS TO THE FINANCIAL AND TELECOMMUNICATIONS INDUSTRIES MR PIEPER FILLS POSTS VACATED BY RALPH UNGERMANN COFOUNDER OF UNGERMANNBASS WHO RESIGNED IN JULY MR PIEPER WON HIGH REGARD AS CHIEF EXECUTIVE OF UNIX SYSTEMS LABORATORIES INC WHEN IT WAS A SOFTWARE UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO HE WAS A KEY ADVOCATE IN CONVINCING A NUMBER OF RIVAL COMPUTER MAKERS EACH WITH ITS OWN VERSION OF THE UNIX COMPUTER OPERATING SYSTEM TO AGREE ON STANDARDS FOR UNIX TO MAKE THE SYSTEM A STRONGER WEAPON AGAINST PRODUCTS FROM MICROSOFT CORP THAT AIM TO SERVE THE CORPORATECOMPUTING MARKET WHERE UNIX IS A MAJOR PLAYER NOVELL'S ACQUISITION OF UNIX SYSTEMS IN JUNE LEFT MR PIEPER WITH NO OFFICIAL TITLE AT NOVELL WHERE HE WAS PART OF AN EXECUTIVE TEAM OVER NOVELL'S UNIX SYSTEMS GROUP AT UNGERMANNBASS WHICH MAKES HARDWARE AND SOFTWARE THAT TIES COMPUTERS INTO NETWORKS MR PIEPER WILL BE IN CHARGE OF MAKING THE COMPANY'S OFFERINGS MORE ATTRACTIVE TO CORPORATIONS THAT USE NETWORKS OF MEDIUM AND SMALL COMPUTERS UNGERMANNBASS HAS LONG OFFERED NETWORK TECHNOLOGY FOR THE MAINFRAME MARKET BUT HAS BEEN LATE TO MOVE INTO THE FASTERGROWING MARKET FOR NETWORKING OF SMALLER COMPUTERS 9309090099 930909 MANAGERS' PLAN TO BUY T2 COLLAPSES AND COMPANY'S SHARES TUMBLE 15 BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL T2 MEDICAL INC SAID A PREVIOUSLY ANNOUNCED EFFORT BY CURRENT AND FORMER MANAGEMENT TO ACQUIRE THE COMPANY HAS COLLAPSED THE NEWS SENT T2 SHARES TUMBLING 15 TO 625 OFF 1125 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE ANNOUNCEMENT ALSO RAISED FURTHER QUESTIONS ABOUT THE FUTURE OF A BELEAGUERED T2 WHICH HAS BEEN BUFFETED BY THE RECENT DISCLOSURE OF ACCOUNTING ERRORS THE DEPARTURE OF KEY EXECUTIVES AND THE CONTINUED SCRUTINY OF ITS DOCTORREFERRAL PRACTICES MANY INVESTORS AND ANALYSTS WHO HAVE WATCHED THE COMPANY'S STOCK PLUMMET FROM A HIGH OF 67 IN 1992 HAD HOPED THE BUYOUT ATTEMPT WOULD SUCCEED FRANKLY I WOULD LIKE TO HAVE SEEN T2 BECOME A PRIVATE COMPANY TO GIVE THEM TIME TO RESTRUCTURE AND REBUILD AWAY FROM THE PUBLIC SCRUTINY SAID LORI PRICE SENIOR ANALYST WITH OPPENHEIMER & CO AMONG OTHER SERVICES T2 PROVIDES INTRAVENOUS DRUG THERAPY IN PATIENTS' HOMES THE DISCLOSURE OF THE COMPANY'S ACCOUNTING PROBLEMS COUPLED WITH REGULATORS' CONCERNS ABOUT T2'S CLOSE FINANCIAL RELATIONSHIPS WITH PHYSICIANS MAY WELL HAVE SCOTCHED THE BUYOUT ACCORDING TO INDUSTRY OBSERVERS I THINK IT WAS ALREADY GOING TO BE DIFFICULT TO SECURE FINANCING SAID MS PRICE ONCE THE ACCOUNTING IRREGULARITIES CAME INTO THE PICTURE IT MADE IT SO MUCH MORE DIFFICULT AS RECENTLY AS LAST THURSDAY PHYSICIANINVESTORS IN T2 PRONOUNCED TSQUARED WERE BEING INTERVIEWED BY INVESTMENT BANKERS AT DONALDSON LUFKIN & JENRETTE INC ONE OF THE FIRMS TRYING TO PUT TOGETHER THE DEAL ACCORDING TO ONE NEW YORK PHYSICIAN WHO WAS CONTACTED DLJ WAS TRYING TO DETERMINE THE LEVEL OF DOCTOR SATISFACTION WITH T2 PHYSICIAN LOYALTY WHICH COMES IN THE FORM OF PATIENT REFERRALS IS CRUCIAL TO T2'S BUSINESS A SPOKESMAN FOR T2 BASED IN ALPHARETTA GA SAID HE DIDN'T KNOW WHY THE BUYOUT ATTEMPT FAILED JOSEPH C ALLEGRA T2'S RECENTLY DEPARTED CHIEF EXECUTIVE OFFICER WHO WAS A LEADER OF THE BUYOUT GROUP DECLINED COMMENT INVESTMENT BANKERS AT DLJ IN NEW YORK ROBINSONHUMPHREY CO IN ATLANTA AND KIDDER PEABODY & CO IN NEW YORK DIDN'T RETURN PHONE CALLS YESTERDAY IN AUGUST T2 RESTATED ITS EARNINGS SHARPLY DOWNWARD FOR THE FISCAL 1993 FIRST QUARTER ENDED DEC 31 1992 AND THE FISCAL 1993 SECOND QUARTER AFTER THE COMPANY DISCOVERED ACCOUNTING IRREGULARITIES AND ERRORS THE MOST SIGNIFICANT ADJUSTMENTS RESULTED FROM INADEQUATE PROVISIONS FOR DOUBTFUL ACCOUNTS APPARENTLY BILLINGS MADE BY T2 THAT NEITHER INSURERS NOR PATIENTS WILL COVER AT THE SAME TIME DR ALLEGRA RESIGNED AND THE COMPANY'S CHIEF FINANCIAL OFFICER TOOK ADMINISTRATIVE LEAVE WITH PAY DISCLOSURE OF THE ACCOUNTING ERRORS HAS SPAWNED A HOST OF SHAREHOLDER SUITS AND MANY OF THE PLAINTIFFS ARE SEEKING TO MERGE THEM INTO A SINGLE ACTION IN US DISTRICT COURT IN ATLANTA ACCORDING TO PITTS CARR THE ATLANTABASED COLEAD COUNSEL FOR THE PLAINTIFFS THE COMPANY HAS SAID IT PLANS TO VIGOROUSLY OPPOSE THE SHAREHOLDER LAWSUITS SOME INDUSTRY ANALYSTS QUESTION WHETHER THE COMPANY GIVEN CONCERNS IN CONGRESS ABOUT PHYSICIAN OWNERSHIP OF MEDICAL FACILITIES MAY BE ABLE TO CONTINUE ITS FINANCIAL RELATIONSHIPS WITH DOCTORS THE FOUNDATION OF THE COMPANY'S EARLY SUCCESS THE QUESTION SAID BRUCE D FIELITZ A T2 DIRECTOR IN AN INTERVIEW YESTERDAY IS ONE THAT COMPANY OFFICIALS NOW SPEND A LOT OF TIME ON BUT THE RESOLUTION OF THAT ISSUE WILL HAVE TO WAIT FOR A NEW CHIEF EXECUTIVE MR FIELITZ SAID NO CANDIDATES FOR THE TOP POSITION OR FOR CHIEF FINANCIAL OFFICER HAVE BEEN INTERVIEWED HE SAID NOTING THAT THE BOARD HAS BEEN WAITING FOR THE RESOLUTION OF THE BUYOUT ATTEMPT 9309090098 930909 MARKETING & MEDIA DOW JONES UNION MEMBERS TAKE AIM AT CEO'S PAY NEW YORK MEMBERS OF THE INDEPENDENT ASSOCIATION OF PUBLISHERS' EMPLOYEES WHICH REPRESENTS ABOUT 2000 OF THE NEARLY 10000 PEOPLE EMPLOYED BY DOW JONES & CO FILED TWO SHAREHOLDER RESOLUTIONS THAT TAKE AIM AT THE COMPENSATION OF PETER R KANN CHAIRMAN AND CHIEF EXECUTIVE OFFICER DOW JONES WHICH PUBLISHES THIS NEWSPAPER AND IAPE HAVE BEEN ENGAGED IN CONTRACT NEGOTIATIONS FOR THE PAST NINE MONTHS BOTH PROPOSALS IF THEY MAKE IT ONTO THE AGENDA OF THE COMPANY'S ANNUAL SHAREHOLDER MEETING NEXT YEAR WOULD BE ADVISORY ONLY ONE PROPOSES THAT THE ANNUAL PERCENTAGE RISE IN MR KANN'S TOTAL COMPENSATION SHOULD MATCH THE AVERAGE INCREASE FOR ALL DOW JONES EMPLOYEES THE OTHER SUGGESTS LIMITING HIS TOTAL COMPENSATION TO 20 TIMES THE AVERAGE COMPENSATION OF HIS EMPLOYEES IAPE SAID MR KANN'S TOTAL COMPENSATION IS 40 TIMES THE EMPLOYEE AVERAGE THE MOST RECENT PROXY STATEMENT FOR DOW JONES INDICATES THAT MR KANN'S SALARY AND BONUS ROSE 21 TO 885000 LAST YEAR HIS FIRST FULL YEAR AS CHAIRMAN THE UNION CALCULATED THE VALUE OF HIS TOTAL COMPENSATION INCLUDING RESTRICTED STOCK AWARDS CONTINGENT ON HIS FUTURE PERFORMANCE AT 19 MILLION THE COMPANY SAID THAT FIGURE EXAGGERATED MR KANN'S TRUE COMPENSATION IN 1992 UNION OFFICIALS SAID THE NEW PROPOSALS AROSE OUT OF THEIR FRUSTRATION WITH WHAT THEY CALLED THE COMPANY'S TOUGH STANCE IN BARGAINING A DOW JONES SPOKESMAN SAID THE TIMING OF THE UNION'S MOVE COMING IN THE MIDDLE OF CONTRACT NEGOTIATIONS WAS QUESTIONABLE 9309090097 930909 TECHNOLOGY IBM SAYS ITS CHAIRMAN PURCHASED 17500 SHARES ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID CHAIRMAN LOUIS V GERSTNER JR BOUGHT 17500 SHARES OF IBM STOCK IN AUGUST FOR 772250 IBM SAID MR GERSTNER BOUGHT THE STOCK IN THREE OPENMARKET TRANSACTIONS BETWEEN AUG 2 AND AUG 12 AT PRICES FROM 4188 TO 4475 A SHARE IBM CLOSED YESTERDAY AT 44375 NEAR ITS 18YEAR LOW OF 40675 THE PURCHASES BRING MR GERSTNER'S PERSONAL HOLDINGS IN IBM STOCK TO 20000 SHARES AFTER HE CAME TO IBM IN APRIL MR GERSTNER ALSO RECEIVED OPTIONS TO BUY 500000 IBM SHARES AT 4775 EACH IBM ALSO SAID ITS NEW CHIEF FINANCIAL OFFICER JEROME YORK PURCHASED 7500 IBM SHARES IN AUGUST FOR 315950 IBM SAID MR YORK PAID 4150 TO 4338 A SHARE AN IBM SPOKESMAN SAID THE COMPANY PLANS TO FILE THE INSIDER PURCHASES WITH THE SECURITIES AND EXCHANGE COMMISSION TOMORROW IBM SAID NEITHER EXECUTIVE WAS AVAILABLE FOR COMMENT 9309090096 930909 ECONOMY JAPAN'S ECONOMIC OUTLOOK BAD TO WORSE STRONG YEN SLOW DOMESTIC SALES COULD HOBBLE CORPORATIONS BY JOHN BUSSEY AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO ALARM BELLS ARE SOUNDING IN JAPAN THIS NATION'S BATTERED ECONOMY HOBBLED ABROAD BY THE STRONG YEN AND AT HOME BY ANEMIC CONSUMPTION HAS TAKEN A TURN FOR THE WORSE A GROWING NUMBER OF ECONOMISTS AND EXECUTIVES BELIEVE THE PARTICULARLY PESSIMISTIC ONES THINK THE ECONOMY CONTRACTED IN THE QUARTER ENDED JUNE 30 AND MIGHT NOT BE DOING MUCH BETTER IN THE CURRENT QUARTER PUTTING THE NATION SQUARELY IN RECESSION THAT IN TURN COULD SEVERELY HAMPER US EFFORTS TO REIN IN JAPAN'S MAMMOTH TRADE SURPLUS THE ECONOMY IS STILLBORN IN 1993 SAYS PAUL SUMMERVILLE HEAD OF RESEARCH FOR LEHMAN BROTHERS IN TOKYO EVEN TOP GOVERNMENT LEADERS ACKNOWLEDGE THAT THE OUTLOOK IS GLOOMY ON TUESDAY PRIME MINISTER MORIHIRO HOSOKAWA SAID IN A SPEECH THAT THE ECONOMY IS IN DANGER OF GOING BACKWARD NOBUHIKO KAWAMOTO PRESIDENT OF HONDA MOTOR CO SAYS I DON'T THINK THAT THE JAPANESE PEOPLE UNDERSTAND YET HOW TRULY SERIOUS THE HIGHYEN PROBLEM IS SOME IN MANUFACTURING ARE ALARMED BUT MOST PEOPLE THINK IT ISN'T THEIR PROBLEM THAT IS LIKELY TO CHANGE SOON THE SURGING YEN WHICH HAS RISEN ABOUT 20 AGAINST THE DOLLAR THIS YEAR MAKES JAPAN'S EXPORTS MORE EXPENSIVE IN TERMS OF OTHER CURRENCIES AND AT THE SAME TIME REDUCES THE AMOUNT OF JAPANESE CURRENCY FROM SALES ABROAD THREATENING TO HAMMER CORPORATE SALES AND PROFITS JUST WEDNESDAY JAPAN'S THREE BIGGEST SEMICONDUCTOR MAKERS SAID THE STRONG YEN HAS FORCED THEM TO SEEK EXPORTPRICE INCREASES OF BETWEEN 8 AND 18 ON MEMORY CHIPS AMID THAT BACKGROUND ONE RESEARCH GROUP HERE ESTIMATES THAT COMBINED PRETAX PROFITS FOR 429 MAJOR JAPANESE COMPANIES WILL TUMBLE 17 IN THE CURRENT FISCAL YEAR WHICH ENDS MARCH 31 1994 AND WITH PROFITS BEING SQUEEZED SAYS KOZO KOIDE SENIOR ECONOMIST AT INDUSTRIAL BANK OF JAPAN LTD THERE WILL BE A SLASHING OF LABOR OR A CUT IN WAGES AT JAPANESE COMPANIES IN COMING MONTHS THAT WOULD SERVE TO UNDERMINE CONSUMER CONFIDENCE AND AN ECONOMIC RECOVERY EVEN FURTHER INDUSTRIAL BANK HAS BEEN FORECASTING 06 ECONOMIC GROWTH IN THE CURRENT FISCAL YEAR BUT MR KOIDE NOW CALLS THAT OUTLOOK EXTREMELY ROSY OTHER ECONOMISTS ARE MORE OPTIMISTIC AND PREDICT AN EXPANSION IN INFLATIONADJUSTED GROSS NATIONAL PRODUCT OF 05 TO 15 STILL THAT WOULD BE WELL BELOW THE GROWTH ESTIMATES OF AS MUCH AS 32 MADE ONLY A FEW MONTHS AGO THE GOVERNMENT REPORT ON GNP GROWTH IN THE LATEST QUARTER IS DUE THIS MONTH TO BE SURE EARLIER THIS YEAR ANALYSTS WERE SAYING THAT THE ECONOMY HAD CONTRACTED IN THE QUARTER ENDED MARCH 31 ONLY TO FIND THAT A DOUBLEDIGIT SURGE IN PUBLIC SPENDING CAUSED GNP TO GROW AT A 23 ANNUAL RATE THE GOVERNMENT HAS LAUNCHED A PROGRAM OF STIMULATIVE SPENDING WHICH COULD CONTINUE TO PROP UP THE ECONOMY WHAT'S MORE THE GOVERNMENT HAS OTHER POLICY OPTIONS AVAILABLE AND IS IN A RATHER HEATED DISCUSSION OVER WHETHER TO CUT INCOME TAXES OR ALLOCATE EVEN MORE MONEY FOR STIMULATIVE PUBLIC SPENDING ON WEDNESDAY CABINET MEMBER KOSHIRO ISHIDA INDICATED HE THINKS JAPAN MUST RESOLVE TO JOLT THE ECONOMY WITH SOME COMPREHENSIVE STIMULUS BEFORE PRIME MINISTER HOSOKAWA MEETS PRESIDENT CLINTON IN THE US LATER THIS MONTH STILL THE SENSE IN TOKYO IS THAT EVEN THE TRILLIONS OF YEN THE GOVERNMENT IS ALREADY PUMPING INTO THE ECONOMY ISN'T ENOUGH A FURTHER WORSENING IN THE DOMESTIC ECONOMY HAS BECOME CLEAR SAYS A REPORT BY THE HITACHI RESEARCH INSTITUTE THE THINK TANK FORECASTS THAT GNP WILL SHRINK 04 IN THE FISCAL YEAR A FULLYEAR CONTRACTION WOULD BE THE FIRST SINCE THE 02 DROP IN THE YEAR ENDED MARCH 31 1975 THE STATE OF THE ECONOMY HAS PRODUCED A TWOSIDED TRADE OUTLOOK ON ONE HAND IF THE STRONG YEN CUTS INTO JAPANESE COMPANIES' SALES ABROAD THE HUGE BILATERAL TRADE SURPLUS WITH THE US COULD SHRINK MEETING A KEY POLICY GOAL OF THE CLINTON ADMINISTRATION THE STRONG YEN ALSO REDUCES THE COST OF IMPORTED GOODS PRESUMABLY MAKING IT MORE ATTRACTIVE FOR JAPANESE CONSUMERS TO BUY FROM ABROAD ON THE OTHER HAND THE ECONOMY'S WEAKNESS HAS CURBED CONSUMPTION WITHIN JAPAN SO ANY TRADE ADVANTAGE THAT THE STRONG YEN CREATES FOR THE US COULD BE DILUTED IF JAPANESE DEMAND FOR RAW MATERIALS AND FINISHED GOODS BOTH IMPORTED AND DOMESTIC CONTINUES TO DETERIORATE WHILE THE CONVENTIONAL WISDOM IN JAPAN HOLDS THAT THE COUNTRY'S OVERALL TRADE SURPLUS WILL RISE THIS YEAR AND PLATEAU OR FALL IN 1994 SOME ECONOMISTS NOW BELIEVE THE SURPLUS COULD SIMPLY CONTINUE TO INCREASE IF JAPANESE COMPANIES ARE UNABLE TO FIND BUYERS AT HOME AND CONTINUE TO PUSH PRODUCTS HEAVILY IN EXPORT MARKETS THE TRADE SURPLUS WAS ABOUT 107 BILLION LAST YEAR IF THE RECENT NEWS FROM CORPORATE JAPAN IS ANY INDICATION DOMESTIC CONSUMPTION WILL STAY ANEMIC IN THE COMING MONTHS OR GROW EVEN WORSE COMPANIES RANGING FROM ELECTRONICS MAKERS TO RETAILERS HAVE SAID THEY ARE STEPPING UP EFFORTS TO SLASH JOBS MAINLY THROUGH ATTRITION KAWASAKI STEEL CORP PLANS TO CUT 600 OF ITS 3300 ADMINISTRATIVE POSITIONS TOSHIBA CORP WILL CUT 5000 JOBS OR 66 OF ITS PARENTCOMPANY WORK FORCE OVER THE NEXT SEVERAL YEARS TAKASHIMAYA CO A DEPARTMENTSTORE CHAIN PLANS TO ELIMINATE 1500 JOBS OR ABOUT 10 OF ITS LABOR FORCE MOREOVER BIG COMPANIES PLAN TO CURTAIL HIRING IN THE SPRING NISSAN MOTOR CO SAYS IT WILL HIRE JUST 300 NEW HIGHSCHOOLEDUCATED BLUECOLLAR WORKERS NEXT YEAR HALF AS MANY AS PLANNED AND LESS THAN ONESIXTH THE 1900 IT HIRED IN 1991 TOYOTA MOTOR CORP PLANS TO REDUCE THE HIRING OF FACTORY WORKERS AND ITS EXECUTIVE VICE CHAIRMAN WARNED LAST WEEK THAT JAPANESE COMPANIES MAY HAVE TO SLASH EVEN MORE JOBS IF THE YEN DOESN'T WEAKEN THE SHIFT ABROAD BODES ILL FOR JOB GROWTH IN JAPAN MANY ECONOMISTS EXPECT THE NATION'S UNEMPLOYMENT RATE TO RISE IN COMING MONTHS ABOVE THE CURRENT 25 ALTHOUGH THAT FIGURE IS LOW BY INTERNATIONAL STANDARDS IT IS WIDELY CONSIDERED TO UNDERSTATE JAPAN'S TRUE UNEMPLOYMENT RATE BECAUSE COMPANIES HERE TEND TO HOLD ON TO SURPLUS WORKERS THE ECONOMIC GLOOM HAS PUT EVEN GREATER PRESSURE ON THE GOVERNMENT TO STIMULATE GROWTH THE CENTRAL BANK IS WIDELY EXPECTED TO REDUCE THE DISCOUNT RATE FROM THE CURRENT 25 BUT THE CUT PROBABLY WOULD HAVE TO BE SUBSTANTIAL PERHAPS AS MUCH AS ONE PERCENTAGE POINT FOR IT TO HAVE MUCH EFFECT ON THE ECONOMY MOST ECONOMISTS BELIEVE THE CENTRAL BANK IS WORRIED ABOUT FUELING ANOTHER 1980SSTYLE SPECULATIVE BOOM AND WON'T BE THAT GENEROUS THAT LEAVES MEASURES SUCH AS A TAX CUT OR FURTHER PUBLIC SPENDING JAPAN'S NEW COALITION GOVERNMENT HAS SO FAR PREFERRED INSTEAD TO EMPHASIZE DEREGULATION AS A MEANS TO STIMULATE GROWTH BUT THE GOVERNMENT MAY BE BEGINNING TO FEEL THAT DEREGULATION WON'T BE ENOUGH AND IT SAYS IT WILL PRESENT A PLAN FOR LIFTING THE ECONOMY LATER THIS MONTH THE GENERAL FEELING AMONG ANALYSTS IS THAT AN INCOME TAX CUT IS CRITICAL TO REVIVING CONSUMER SENTIMENT AND DOMESTIC DEMAND EVERYBODY PERCEIVES THE ECONOMY TO BE AT A TURNING POINT SAYS ROBERT FELDMAN AN ECONOMIST WITH SALOMON BROTHERS IN TOKYO IF MEMBERS OF THE GOVERNMENT DRAG IT OUT THERE'S CERTAINLY THE POSSIBILITY OF A NEGATIVE SPIRAL FORMING WE'RE ON A KNIFE'S EDGE RIGHT NOW 9309090095 930909 TECHNOLOGY THREE COMPANIES TEST PHONECALLING SYSTEM THAT TRACES CUSTOMER NEW YORK SPRINT CORP BELLSOUTH CORP AND COMCAST CELLULAR COMMUNICATIONS INC SAID THEY WILL TEST MARKET A SERVICE THAT ENABLES A CUSTOMER TO BE REACHED AT ANY TELEPHONE OR FAX MACHINE THROUGH A SINGLE TELEPHONE NUMBER THE SERVICE SOUNDS A LITTLE LIKE AMERICAN TELEPHONE & TELEGRAPH CO'S EASYREACH 700 SERVICE WHICH ALLOWS A CUSTOMER TO HAVE ALL CALLS FORWARDED TO ONE NUMBER WITH A 700 PREFIX BUT THE NEWER OFFERING GOES BEYOND AT&T'S TELEPHONE NETWORK COMPUTERS PROGRAMMED TO FORWARD THE CALL WILL TRY TO LOCATE A CUSTOMER AT SEVERAL LOCATIONS UNTIL IT RINGS THE APPROPRIATE PHONE SAID GREG BUTZ DIRECTOR OF BUSINESS DEVELOPMENT AT COMCAST CELLULAR A UNIT OF CABLE GIANT COMCAST CORP PHILADELPHIA THE CUSTOMER CAN ALSO CHOOSE TO HAVE FACSIMILE MESSAGES FORWARDED TO THE NUMBER AND BY PUNCHING A FEW BUTTONS ON THE TELEPHONE THE PHONE SYSTEM CAN BE MADE TO PRIORITIZE OR CANCEL INCOMING CALLS THE COMPANIES SAID COMCAST WILL TEST THE SERVICE IN THE PHILADELPHIA AREA THIS MONTH SPRINT CELLULAR PLANS TO LAUNCH THE SERVICE IN NORFOLK/VIRGINIA BEACH VA NEXT MONTH BELLSOUTH COMPUTERS WILL HOLD THE DATABASE OF CUSTOMERS' PHONE NUMBERS AND SPECIAL BELLSOUTH SOFTWARE WILL MAKE THE COMPUTER DIRECT INCOMING CALLS TO THE APPROPRIATE LOCATION 9309090094 930909 FOREIGN EXCHANGE DOLLAR HOLDS STEADY AGAINST THE MARK PENDING DECISION ABOUT GERMAN RATES BY TIMOTHY MAPES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR HELD STEADY AGAINST THE MARK WEDNESDAY AS PLAYERS WAITED TO SEE WHETHER A POLICY MEETING THURSDAY AT GERMANY'S CENTRAL BANK BRINGS A CHANGE IN GERMAN INTEREST RATES BUT THE YEN WEAKENED ACROSS THE BOARD AS THE MARKET GREW MORE CONFIDENT THAT A MEASURE TO HELP PARE JAPAN'S HUGE TRADE SURPLUS IS IN THE WORKS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16130 MARKS UNCHANGED FROM LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10560 YEN UP FROM 10420 YEN STERLING WAS TRADING AT 15415 UP FROM 15395 TRADERS NOTED THAT THE MARKET'S ATTENTION WAS FOCUSED ON THURSDAY'S MEETING OF THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL BUT THEY ADDED THAT THERE IS LITTLE CONSENSUS OVER WHAT RESULTS THE MEETING MIGHT PRODUCE SOME EXPECT THE BANK TO CUT GERMANY'S 675 DISCOUNT RATE AS MUCH AS 05 PERCENTAGE POINT OTHERS EXPECT THE KEY RATE TO HOLD STEADY THERE'S AN AWFUL LOT OF UNCERTAINTY SAID DAVE GLOWACKI A SENIOR TRADER AT THE NATIONAL BANK OF DETROIT THE MARKET IS VERY NERVOUS THE UNCERTAINTY MADE FOR QUIET TRADING ON THE DOLLARMARK FRONT WITH THE DOLLAR BOXED INTO A FAIRLY NARROW RANGE BETWEEN AN INTRADAY LOW OF 16105 MARKS AND A HIGH OF 16219 MARKS TRADERS SAID THAT THE MARK'S STRENGTH IS LIKELY TO CONTINUE FOR THE SHORT TERM EVEN IF THE BUNDESBANK DOES LOWER THE DISCOUNT RATE THURSDAY THEY NOTED THAT GIVEN THE INFLATION AND MONEYSUPPLY PRESSURES FACING GERMANY THE BUNDESBANK IS UNLIKELY TO LET INTEREST RATES FALL VERY FAR VERY FAST LEAVING GERMAN RATES FAR ABOVE COMPARABLE RATES IN JAPAN OR THE US AGAINST THE YEN HOWEVER BOTH THE DOLLAR AND THE MARK MOVED SHARPLY HIGHER AS PLAYERS GREW MORE CERTAIN THAT THE JAPANESE GOVERNMENT IS LIKELY TO COME UP WITH MEASURES TO STIMULATE JAPAN'S ECONOMY AND REDUCE ITS HUGE TRADE SURPLUS THERE SEEMS TO BE A CONSENSUS THAT THE US AND JAPAN HAVE COME TO SOME SORT OF INFORMAL AGREEMENT ON THE TRADE ISSUE NOTED STEVEN WALKER A TRADER AT UNIBANK A/S IN NEW YORK MR WALKER AND OTHER TRADERS CITED COMMENTS TUESDAY BY LAWRENCE SUMMERS US TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS AS A SIGN THAT THE US FEELS COMFORTABLE THAT THE JAPANESE GOVERNMENT IS READY TO ACT TO STIMULATE ITS ECONOMY AND THUS HELP REDUCE THE TRADE IMBALANCE BY LOWERING JAPAN'S RELIANCE ON EXPORTS I THINK YOU CAN LOOK FORWARD TO STEPS BY JAPAN TO SIGNIFICANTLY REDUCE ITS CURRENT ACCOUNT IMBALANCE MR SUMMERS SAID TRADERS ALSO NOTED ADDITIONAL SIGNS WEDNESDAY THAT JAPAN IS READY TO STIMULATE ITS DOMESTIC ECONOMY THOSE INCLUDED A CALL FROM THE CHAIRMAN OF A MAJOR PARTY IN JAPAN'S RULING COALITION FOR QUICK ACTION ON A STIMULUS PACKAGE ALONG WITH A HINT FROM FINANCE MINISTER HIROHISA FUJII THAT IF PENDING ECONOMIC INDICTORS REMAIN WEAK THE GOVERNMENT COULD TAKE NEW STIMULUS MEASURES SOON TRADERS NOTED THAT SALES OF YEN FOR MARKS BOOSTED THE GERMAN CURRENCY ABOVE A KEY RESISTANCE POINT AT 65 YEN TRIGGERING ADDITIONAL STOPLOSS ORDERS THAT RAISED THE MARK AS HIGH AS 6555 YEN BEFORE PROFITTAKING LEFT IT AT 6547 YEN LATE IN NEW YORK THAT WAS UP STRONGLY FROM 6463 YEN LATE TUESDAY 9309090093 930909 LETTERS TO THE EDITOR NEGATIVE DEVELOPMENT KODAK AS A METOOER' YOUR AUG 9 ARTICLE KODAK SEEKS OUTSIDER TO BE CHAIRMAN CEO EXPOSES AN INTERESTING VIEW OF INVESTOR SHORTSIGHTEDNESS AND SHORT MEMORY IT WAS STATED THAT INVESTORS WANT THE ROCHESTER NY PHOTOGRAPHY CHEMICAL AND HEALTHCARE COMPANY TO CUT RESEARCH COSTS AND BECOME AN AGGRESSIVE FOLLOWER' BY CAPITALIZING ON RIVALS' INVENTIONS INSTEAD OF MOSTLY DEVELOPING ITS OWN SHORTSIGHTED WITHOUT INNOVATION AND UNIQUE NEW PRODUCTS MARGINS WILL DROP FOLLOWED BY PROFITS AND INVESTOR VALUE FURTHER THE RIPPLE EFFECTS SUCH RESEARCH CUTS WILL HAVE ON OUR ECONOMY DUE TO SPIRALING LAYOFFS AND LOSS IN TECHNOLOGICAL COMPETITIVE EDGE IS NOT EASILY CALCULABLE BUT CERTAINLY DELETERIOUS SHORT MEMORY THE LAST TIME KODAK FOLLOWED AN AGGRESSIVE FOLLOWER STRATEGY WAS IN 1985 WHEN KODAK WAS ORDERED TO PAY 9095 MILLION IN DAMAGES TO POLAROID FOR FOLLOWING POLAROID'S INSTANT CAMERA TECHNOLOGY THIS EVENT PROMPTED A MEMORABLE AND SOMEWHAT IRONIC HEADLINE IN THE WALL STREET JOURNAL POLAROID'S PATENTCASE AWARD SMALLER THAN ANTICIPATED IS A RELIEF FOR KODAK THE ABOVEQUOTED KODAK INVESTORS SHOULD BE ADVISED THAT AGGRESSIVE FOLLOWING IS NOT HOW TO SPELL RELIEF EITHER IN 1985 OR TODAY IT IS LEADERSHIP IN INNOVATING AND AGGRESSIVELY PROTECTING AND POLICING INNOVATION THAT WILL GROW A BUSINESS AND INCREASE INVESTOR VALUE IT WOULD BE A SAD DAY FOR KODAK ITS EMPLOYEES AND THIS COUNTRY'S TRADITION FOR INNOVATION SHOULD KODAK ABANDON ITS LEADERSHIP ROLE IN THE DEVELOPMENT OF TECHNOLOGY AND BECOME JUST ANOTHER METOO COMPANY 9309090092 930909 KODAK TO REVIEW TOP CANDIDATES FOR CEO TODAY SHORT LIST IS SAID TO INCLUDE APPLE AT&T OFFICIALS HEADQUARTERS MAY MOVE BY JOAN E RIGDON AND JULIE AMPARANO LOPEZ STAFF REPORTERS OF THE WALL STREET JOURNAL EASTMAN KODAK CO'S BOARD WILL REVIEW A SHORT LIST OF CHIEF EXECUTIVE OFFICER CANDIDATES AT ITS REGULAR MEETING TODAY PEOPLE CLOSE TO THE COMPANY SAID THE FIELD IS STILL OPEN TO NEW CANDIDATES BUT SO FAR THE LIST IS TOPPED BY FIVE EXECUTIVES WITH NO CLEAR FAVORITE JOHN SCULLEY CHAIRMAN OF APPLE COMPUTER INC VICTOR PELSON A TOP EXECUTIVE AT AMERICAN TELEPHONE & TELEGRAPH CO STANLEY GAULT CHAIRMAN AND CHIEF EXECUTIVE OF GOODYEAR TIRE & RUBBER CO FORMER KODAK VICE CHAIRMAN J PHILLIP SAMPER NOW A MANAGEMENT CONSULTANT AND KODAK DIRECTOR RICHARD S BRADDOCK THE FORMER CITICORP PRESIDENT WHO IS NOW CHIEF EXECUTIVE OF MEDCO CONTAINMENT SERVICES INC ANOTHER KODAK DIRECTOR JOHN J PHELAN JR PRESIDENT OF THE INTERNATIONAL FEDERATION OF STOCK EXCHANGES AND HEAD OF KODAK'S CORPORATE DIRECTIONS COMMITTEE HAS ALSO THROWN HIS HAT INTO THE RING OF THE TWO KODAK DIRECTORS MR BRADDOCK IS CONSIDERED THE PREFERRED CANDIDATE BECAUSE HE IS YOUNGER AND HAS MORE RELEVANT BUSINESS EXPERIENCE IN A RELATED MATTER THE ROCHESTER NY PHOTOGRAPHY HEALTHCARE AND CHEMICAL CONCERN MAY CONSIDER MOVING ITS CORPORATE HEADQUARTERS TO ANOTHER CITY TO ATTRACT THE RIGHT CANDIDATE PEOPLE CLOSE TO KODAK CONFIRMED SUCH A MOVE WOULD BE A MAJOR CHANGE FOR KODAK WHICH HAS TRADITIONALLY BASED ALL ITS TOP EXECUTIVES IN ROCHESTER WHERE IT WAS FOUNDED IN 1880 A HEADQUARTERS MOVE WOULD BE SEPARATE FROM AND COULD EVEN ABORT KODAK'S ANNOUNCEMENT LAST WEEK THAT IT IS MOVING 200 SENIOR EXECUTIVES FROM ITS CORE IMAGING BUSINESS WHICH INCLUDES FILM AND COPIERS TO THE WASHINGTON AREA THE LIST OF CANDIDATES TO HEAD KODAK ALSO INCLUDES WILLEM ROELANDTS 48 VICE PRESIDENT AND GENERAL MANAGER OF HEWLETTPACKARD CO AND CHARLES KNIGHT 57 CHAIRMAN OF EMERSON ELECTRIC CO PEOPLE CLOSE TO KODAK SAID KODAK HAS BEEN SEARCHING FOR A NEW CHIEF EXECUTIVE OFFICER SINCE AUGUST WHEN THE BOARD ANNOUNCED THE OUSTER OF KAY R WHITMORE THE BOARD SAID MR WHITMORE 61 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 THE END OF THE YEAR THE HEAD OF KODAK'S SEARCH EFFORTS GERARD S ROCHE CHAIRMAN OF HEIDRICK & STRUGGLES DECLINED TO COMMENT THE NEW CEO IS EXPECTED TO BRING IN SEVERAL OF HIS OWN LIEUTENANTS TO RUN THE COMPANY AND MAY EVEN REPLACE THE CURRENT HEADS OF KODAK'S BUSINESS GROUPS LEO JACK THOMAS HEAD OF KODAK'S IMAGING BUSINESS WILLIAM F FOWBLE THE NO 2 EXECUTIVE IN THE IMAGING BUSINESS AND WILBUR J PREZZANO HEAD OF THE HEALTHCARE DIVISION UNTIL MR WHITMORE WAS DEPOSED MR THOMAS WAS WIDELY EXPECTED TO BE HIS HEIR APPARENT HE DECLINED TO RETURN A PHONE CALL SEEKING COMMENT MESSRS PREZZANO AND FOWBLE HOWEVER WERE NOT EXPECTED TO STAY LONG AT KODAK THEY HAD PLANNED TO LEAVE KODAK DURING AN EARLY RETIREMENT BUYOUT IN 1991 ACCORDING TO KODAK'S PROXY BUT DELAYED THEIR DEPARTURES TO HELP MR WHITMORE EXECUTE A RESTRUCTURING PLAN NEITHER ONE RETURNED PHONE CALLS IT'S UNCLEAR HOW MUCH OF KODAK'S CORPORATE STAFF WOULD RELOCATE IF THE COMPANY DECIDES TO MOVE ITS HEADQUARTERS THE COMPANY'S RECENT DECISION TO MOVE ITS IMAGING GROUP EXECUTIVES TO WASHINGTON WAS ANNOUNCED BY ROBERT T HAMILTON HEAD OF THE BUSINESS'S US REGION MR HAMILTON TOLD HIS EMPLOYEES THAT THE MOVE HAD BEEN APPROVED BY KODAK'S BOARD BUT ONE INSIDER SAID THE RELOCATION WAS SIMPLY A ONELINE ITEM IN A LARGER BUSINESS PLAN AND THAT THE BOARD WASN'T FULLY AWARE OF THE PROPOSED MOVE WHEN IT APPROVED THE PLAN MR HAMILTON AND BOARD MEMBERS DIDN'T RETURN PHONE CALLS SEEKING COMMENT PEOPLE CLOSE TO KODAK SAY THE BOARD OPPOSES THE MOVE TO WASHINGTON IT'S UNCLEAR HOW KODAK'S SEARCH COMMITTEE WILL RECEIVE THE LIST OF CANDIDATES TODAY SEVERAL NAMES DON'T JIBE WITH THE BOARD'S EARLIER STATEMENTS THAT IT'S LOOKING FOR A MARKETING WHIZ PREFERABLY WITH EXPERIENCE IN PACKAGED GOODS WHO DID NOT COME THROUGH THE RANKS AT KODAK THE IDEAL CANDIDATE IS SUPPOSED TO HAVE HIGH ENERGY BUT DIPLOMACY SO HE DOESN'T RUN ROUGHSHOD OVER THE TROOPS HERE IS A LOOK AT THE LEADING CANDIDATES JOHN SCULLEY 53 CHAIRMAN APPLE COMPUTER HE COULD PROVIDE KODAK WITH DRIVE AND VISION WHILE HE HAS SPENT THE LAST DECADE AT THE PERSONALCOMPUTER COMPANY MR SCULLEY FORMER PRESIDENT AND CEO OF PEPSICO'S PEPSICOLA CO UNIT HAS PLENTY OF MARKETING EXPERIENCE WHICH KODAK DESPERATELY NEEDS FOR NOW HE'S OFF LIMITS SINCE HE WAS PLACED IN HIS CURRENT JOB BY MR ROCHE IT'S CONSIDERED UNETHICAL FOR A HEADHUNTER TO RECRUIT A CANDIDATE AWAY FROM A COMPANY WHERE THE HEADHUNTER PLACED HIM BUT MR SCULLEY COULD BE FAIR GAME IF HE LEFT APPLE IN JUNE MR SCULLEY STEPPED DOWN AS CEO APPLE DECLINED TO RETURN PHONE CALLS VICTOR PELSON 56 EXECUTIVE VICE PRESIDENT AT&T THOUGH HE'S NOT A CEO HE PREVIOUSLY RAN AT&T'S 40 BILLION COMMUNICATIONS SERVICES DIVISION AND HELPED PUSH THE COMPANY INTO ITS SUCCESSFUL CREDIT CARD BUSINESS HE WAS SHIFTED IN LATE JULY TO A NEW POSITION HEADING THE COMPANY'S GLOBALIZATION EFFORTS AND DIRECTS A SEVENMEMBER OPERATING TEAM MR PELSON DIDN'T RETURN PHONE CALLS STANLEY GAULT 67 CHAIRMAN AND CHIEF EXECUTIVE OF GOODYEAR TIRE & RUBBER AND COCHAIRMAN OF RUBBERMAID INC HE IS CREDITED WITH HELPING TO TURN AROUND GOODYEAR BY PUSHING NEW PRODUCTS AS HE DID AT RUBBERMAID WHILE HE OFFERS MARKETING SAVVY HE MAY BE CONSIDERED TOO OLD TO SERVE 10 YEARS AT A NEW JOB THE AMOUNT OF TIME KODAK EXPECTS FROM ITS NEXT CHIEF MR GAULT WAS TRAVELING AND COULDN'T BE REACHED TO COMMENT A GOODYEAR SPOKESMAN SAID J PHILLIP SAMPER 59 MANAGEMENT CONSULTANT ANNAPOLIS MD HE LEFT KODAK IN JANUARY 1990 AFTER LOSING OUT TO MR WHITMORE FOR THE CHAIRMAN'S SEAT BUT HE'S STILL VIEWED BY MANY INSIDERS AS THE MAN WHO SHOULD HAVE WON HE HEADED THE MARKETING EFFORT OF KODAK'S DISC CAMERA WHICH WAS A FLOP WITH CONSUMERS HIS ALLIES SAY HE WAS SIMPLY STUCK SELLING A PRODUCT THAT SOMEONE ELSE INVENTED HOWEVER MR SAMPER A 29YEAR KODAK VETERAN DOESN'T FIT THE BOARD'S DESIRE FOR AN OUTSIDER ASKED IF HE'S IN THE RUNNING HE SAID I HAVEN'T RULED IT OUT BUT HE WOULDN'T SAY WHETHER HE'S BEEN APPROACHED RICHARD S BRADDOCK 51 CHIEF EXECUTIVE OF MEDCO CONTAINMENT SERVICES AND A KODAK BOARD MEMBER AS HEAD OF THE MAILORDER PRESCRIPTION DRUGS CONCERN HE HAS THE MARKETING EXPERIENCE KODAK WANTS WHAT'S MORE HIS FUTURE IS UNCERTAIN SINCE MERCK & CO AGREED LAST MONTH TO BUY HIS COMPANY THE HEAD OF KODAK'S SEARCH COMMITTEE COCACOLA CO CHAIRMAN ROBERTO C GOIZUETA VOLUNTEERED MR BRADDOCK'S NAME LAST MONTH WHEN ASKED IF ANY OF KODAK'S INDEPENDENT BOARD MEMBERS COULD BE CONSIDERED CANDIDATES MR BRADDOCK DECLINED TO RETURN PHONE CALLS 9309090091 930909 LETTERS TO THE EDITOR TAX BITE VICTIMS I'M DISAPPOINTED IN YOUR AUG 13 ARTICLE REGARDING EFFECTS OF THE NEW TAX LAW YOUR STORY DEALT MAINLY WITH THE TRULY WEALTHY I DOUBT IF SHERI LEWIS WILL FEEL IT OR R DAVID THOMAS WENDY'S OR THE PATENT LITIGATOR WHO EARNED 150 MILLION LAST YEAR OR ALMOST ANYONE ELSE YOUR STORY MENTIONED BUT THE COUPLE WHO IS PERHAPS EARNING 145000 HAS A HEFTY HOME MORTGAGE MAYBE HAS A COUPLE OF KIDS TO STILL GET THROUGH COLLEGE THESE ARE THE PEOPLE WHO WILL FEEL THE NEW TAX BITE THE MOST AND THEY'RE A LOT CLOSER TO MIDDLE INCOME THAN THEY ARE TO TRUE WEALTH 9309090090 930909 LEISURE & ARTS TV SHERLOCK HOLMES IN THE 90S A HISTORY OF AIDS BY DOROTHY RABINOWITZ THE ILLUSTRIOUS DETECTIVE ANTHONY HIGGINS AWAKENS IN L990'S SAN FRANCISCO AFTER NEARLY 10 DECADES ASLEEP AFTER EXPLAINING HOW HE HAS PRESERVED HIS BODY DON'T ASK HE GOES FORTH TO DO COMBAT WITH HEIRS OF THE EVIL MORIARTY AND ALONG THE WAY TO CONFRONT SOME OF THE ODDITIES OF THE LATE 20TH CENTURY A NICE TALE LAID ON WITH A TROWEL BUT BUOYED UP BY EXUBERANCE CATCH SHERLOCK CONFRONTING A CALIFORNIA STREET GANG THIS CHAPTER OF OUR CENTURY CONCERNS THE DECEMBER 1944 MASSACRE BY MEMBERS OF THE FIRST SS PANZER DIVISION OF SOME 86 AMERICAN POW'S CAPTURED IN THE ARDENNES 140 SOLDIERS OF THE US 285TH FIELD ARTILLERY AND OBSERVATION BATTALION WERE HERDED INTO A PASTURE SHOT AND CLUBBED TO DEATH BUT NOT ALL SOME MANAGED TO ESCAPE AND TO TESTIFY AT THE POSTWAR TRIAL OF THE PERPETRATORS ABOUT THE WAY THE GERMANS LAUGHED AS THEY SHOT THE PRISONERS ABETTED BY CONTRIBUTIONS FROM HISTORIAN JAMES J WEINGARTNER AUTHOR OF THE EXCELLENT 1978 MALMEDY MASSACRE STUDY TITLED CROSSROADS OF DEATH THIS IS A SINGULARLY PENETRATING AND GRAPHIC OVERVIEW OF THE EVENT THE HISTORY OF THE SS BATTALION IN QUESTION AND NOT LEAST OF THEIR TRIAL IN ADDITION TO PROVIDING DRAMATIC EXCERPTS OF THE LATTER THE FILM YIELDS RICH DETAILS OF THE CIRCUSLIKE INVESTIGATIONS THAT FOLLOWED WHEN A CONGRESSIONAL COMMITTEE WAS WHIPPED UP TO LOOK INTO IMPROPRIETIES SUPPOSEDLY COMMITTED AGAINST THE SS BY THE US MILITARY NONE OTHER THAN THE SOONTOBE FAMOUS SENATOR FROM WISCONSIN JOSEPH R MCCARTHY LED THE CHARGE ACCUSING THE ARMY OF BESTIAL MALTREATMENT OF THE SS FICTION WRITERS COULD NOT HAVE INVENTED SO WONDERFULLY TELLING A SPECTACLE THE FILM VERSION OF RANDY SHILTS'S POTENT HISTORY OF THE AIDS EPIDEMIC STARS MATTHEW MODINE ALAN ALDA AND AN ESPECIALLY FINE IAN MCKELLEN IN LEAD ROLES NOT THAT THE PERFORMANCES AVAIL MUCH THE PRODUCT OF MANY REWRITES TO SAY NOTHING OF COUNTLESS CUTS AND ADDITIONS DESIGNED TO ASSURE POSITIVE IMAGES OF HOMOSEXUAL LIFE THE MOVIE IS CURIOUSLY OR PERHAPS NOT SO CURIOUSLY UNDRAMATIC IF NOT DOWNRIGHT BLOODLESS THAT'S NOT TO SAY THE FILM DOESN'T HAVE STRONG MOMENTS IN ITS CONSTRICTED WAY THE BESTSELLING WORK ON WHICH IT IS BASED DERIVED ITS FORCE FROM RELENTLESS DOCUMENTATION WHICH SPARED NO ONE INCLUDING THE COMMUNITY MOST AFFLICTED BY AIDS NEVER HAD THERE BEEN SO SHARP AND AUTHORITATIVE A PORTRAIT OF THE RAMPAGING PROMISCUITY AMONG HOMOSEXUALS IN THE PERIOD BEFORE AND DURING THE EPIDEMIC OR SO REVEALING A LOOK AT THE MILITANTS WHO DIDN'T WANT THEIR BATHHOUSES CLOSED AS IN THE SHILTS BOOK DON'T LOOK FOR ANY SUCH CANDOR OR POWER IN THIS STARSTUDDED NEAT SOFTLY ELEGIAC FILM WITH IT'S FAMILIAR HIT LIST THE GOVERNMENT THE MEDICAL BUREAUCRACY RONALD REAGAN GEORGE BUSH ETC IT'S RIGHTMINDED SPEECHES AND SENSITIVE ATTITUDES IN FACT A GOODLY PORTION OF THIS ENTERPRISE FEELS LIKE NOTHING SO MUCH IN SPIRIT AS AN AIDS BENEFIT BENEFITS OF COURSE ARE NOT THE STUFF OF WHICH DRAMA IS MADE THE FRASIER IN QUESTION OF CHEERS FAME APPEARS IN THIS NEW SITCOM THIS TIME AS A RADIO PSYCHOBABBLER DELIVERING ADVICE TO CALLERS THOUGH THERE IS A FAINTLY UNPLEASANT PREDICTABILITY ABOUT MUCH OF THE GOINGS ON IN THIS EPISODE KELSEY GRAMMER FRASIER IS HIS OLD SMOOTHLY ABSURD SELF THAT COULD GO A LONG WAY ESPECIALLY IF THE WRITING IMPROVED AN AMBITIOUS BRITISH POLICEMAN SNIFFS OUT THE WHEREABOUTS OF A PATHOLOGICAL CHARMER WANTED BY THE LONDON POLICE THE CHARACTERISTICALLY HARDBOILED STORY BY LYNDA LAPLANTE AUTHOR OF THE PBS PRIME SUSPECT SCRIPTS DELIVERS A FAIR MODICUM OF SUSPENSE AMID BREATHLESS TWISTS AND PLOT TURNS AND A FREQUENTLY IMPENETRABLE SOUND TRACK AS THE CRIMINAL CHARMER IN QUESTION TIMOTHY DALTON HELPS MATTERS ALONG CONSIDERABLY 9309090089 930909 LETTERS TO THE EDITOR IT'S BLOWIN' IN THE WIND AGAIN IT DIDN'T TAKE LONG TO REDISCOVER OUR ENEMY DID IT WHY IT'S THAT INSIDIOUS DECADE OF SEX DRUGS AND ROCK & ROLL THE '60S DISCREDITING PRESIDENT CLINTON'S POLICIES ON THEIR OWN IS NOT ENOUGH WE NEED TO FIND A DEEPER REASON FOR ALL THAT IS WRONG WITH THIS NEW ADMINISTRATION SEEMS A BIT LIKE A THERAPEUTIC ANALYSIS ANOTHER DEMON INEXPLICABLY ASSOCIATED WITH THE '60S WELL I WOULD LIKE TO REBUT SOME OF THE CONTRIVED THESES OF MR KRISTOL'S CLINTON'S ILLUSION SPIRIT OF THE '60S ON YOUR AUG 19 EDITORIAL PAGE MR KRISTOL DECLARES THAT THE REDISTRIBUTION OF WEALTH AND INCOME IS NEVER A REAL POLITICAL ISSUE IN THE US IT IS NOT AN ISSUE SO LONG AS NO ONE DARE SUGGEST IT BUT THE MOMENT ANY NEW POLICY THAT CAN AFFECT INCOME DISTRIBUTION IS BROUGHT UP IT SURE SEEMS TO TRANSFORM INTO A MAJOR ISSUE TO BE DEFENDED OR FOUGHT TOOTH AND NAIL FURTHER MR KRISTOL WRITES THAT THE ISSUES THAT COUNT ARE DEFICIT ECONOMIC GROWTH AND EVEN FOREIGN POLICY DOES HE SERIOUSLY THINK THAT PRESIDENT CLINTON WOULD DISAGREE WITH SUCH AN OBVIOUS STATEMENT I RECALL CANDIDATE CLINTON SPENDING AN AWFUL LOT OF TIME CAMPAIGNING ON THE ECONOMY MR KRISTOL TIES THE LITIGIOUS AND SOMETIMES ABSURD TRENDS TODAY SUCH AS CONFUSING FLIRTING WITH CRIMINAL OFFENSE TO THE '60S TO HIS MIND IT SEEMS REGULATIONS AND MEDDLING WITH PERSONAL FREEDOM WERE MADE POPULAR BACK THEN I SUBMIT THAT THERE WAS FAR LESS PERSONAL FREEDOM BEFORE THE EVENTS OF THE 1960S WASN'T CIVIL RIGHTS ABOUT FREEDOM THE BANNING OF CIGARETTE SMOKING IN LA RESTAURANTS IS NOT THE SPIRIT OF THE '90S A MORE TYPICAL RESPONSE TO SOMEONE LIGHTING UP IN THE '60S WOULD HAVE BEEN CAN I BUM A CIGARETTE FROM YOU CONTRARY TO RESTRICTING PERSONAL FREEDOM THE '60S VIGOROUSLY QUESTIONED AND PUSHED THOSE RESTRICTIONS TO THE POINT WHERE IT CAUSED CONSIDERABLE DISCOMFORT TO THOSE WHO BELIEVED THAT MEN HAVE MILITARYSTYLE HAIRCUTS AND WOMEN MUST BEHAVE LIKE CHILDREN UNTIL THEY ARE MARRIED OFF I DO NOT DENY THAT MANY NEW GOVERNMENT REGULATIONS WERE SPAWNED IN THE '60S BUT NOT ALL OF THEM WERE CONCOCTED JUST TO FRUSTRATE BUSINESS SOME OF THEM WERE PUT INTO EFFECT TO PREVENT RIVERS FROM BEING DESTROYED AND TO SAVE SOME SONGBIRDS FOR THE NEXT GENERATION ALL IN ALL THE '60S WAS A TIME OF MONUMENTAL CHANGE AND UPHEAVALS TO CONDENSE THE SPIRIT OF SUCH TIMES TO A FEW FOLK SONGS AND POP PSYCHOLOGY IN ORDER TO DEFINE THE CLINTON CROWD IS SIMPLY PREPOSTEROUS THE '60S IS NOT THE '90S AND THE FUTURE IS NOT THE PAST PEACE DESPITE THE MIDDLE CLASS AND EVEN LOWER MIDDLE CLASS ORIGINS OF KEY ADMINISTRATION OFFICIALS THIS GROUP OF PEOPLE IS ISOLATED MORE COMPLETELY FROM AMERICAN MIDDLE CLASS VALUES THAN THE WASHINGTON INSIDERS THEY ENJOY DERIDING A STRIKING IRONY NOT TOUCHED ON BY MR KRISTOL ARISES UPON REFLECTING THAT THE POSTGRADUATE EDUCATION OF KEY MEMBERS OF THIS ADMINISTRATION OCCURRED AT OXFORD HOW THE PRESIDENT AND ROBERT REICH DESCRIBE THEMSELVES AS IN TOUCH WITH THE MIDDLE CLASS AFTER FINISHING THEIR EDUCATION AT PERHAPS THE MOST ELITIST INSTITUTION IN THE ENGLISHSPEAKING WORLD IS ASTOUNDING MR REICH INDEED STANDS AT THE EPICENTER OF THE IRONIC IMAGE IN TELEVISION INTERVIEWS IT SEEMS DIFFICULT FOR MR REICH TO CONCEAL HIS POMPOUS AND PATRONIZING ATTITUDE TOWARD LABOR AND THE MIDDLE CLASS AND HIS CONTEMPT FOR ENTREPRENEURISM AND PRIVATE ENTERPRISE IN GENERAL IT IS CLEAR FROM HIS DISCUSSIONS THAT HE BELIEVES GOVERNMENT SHOULD MANAGE ALL FACETS OF LIFE FOR US POOR BENIGHTED CITIZENS MR KRISTOL WAS UNUSUALLY INCISIVE IN RELATING A FUNDAMENTAL LIBERAL TENENT TYPICAL OF THIS ADMINISTRATION AND STATED SO WELL BY ROSSEAU THEY WILL BE FORCED TO BE FREE IN THE MID1960S AT OHIO UNIVERSITY WE REFERRED TO THEM AS DUDLEYDOGOODS INTELLIGENT GUITARTOTING MISTYEYED ACTIVISTS WHO FELT THAT COMMUNICATION LOFTY INTENTIONS AND MORE GOVERNMENT INVOLVEMENT WERE THE OBVIOUS SOLUTIONS TO MOST OF SOCIETY'S ILLS IT'S TOO BAD THEY WERE NOT RIGHT 9309090088 930909 LETTERS TO THE EDITOR TEDDY ROOSEVELT DESERVES BETTER I HAD HOPED THAT THE WALL STREET JOURNAL WOULD REMAIN A REFUGE FROM THE RAMPANT POLITICAL CORRECTNESS OF OUR TIME BUT APPARENTLY THAT IS NOT TO BE I REFER TO DAVID SHRIBMAN'S REVIEW OF ROBERT M UTLEY'S THE LANCE AND THE SHIELD LEISURE & ARTS AUG 23 NOT CONTENT WITH PAINTING A PICTURE OF SITTING BULL AS THE PERFECT MAN MR SHRIBMAN GOES OUT OF HIS WAY TO ATTACK SOME DEAD WHITE MALES WASHINGTON LINCOLN AND THEODORE ROOSEVELT ALL OF WHOM RANK AMONG OUR GREATEST PRESIDENTS THE MOST GRATUITOUS OFFENSE IS AGAINST TR WHOM MR SHRIBMAN SAYS NOW WE KNOW WAS SICKLY AS A CHILD AND SOMETHING OF A JERK AS AN ADULT HOW ROOSEVELT'S SICKNESS AS A CHILD IS SEEN AS A CRACKING OF HIS IMAGE OVER THE YEARS IS UNEXPLAINED FIRST OF ALL THAT WAS KNOWN IN HIS LIFETIME AND WAS SEEN AS PART OF HIS LEGEND EVEN THEN SECOND THE FACT THAT HE WAS ABLE TO BUILD HIMSELF UP FROM THAT TO THE MODEL OF THE STRENUOUS LIFE THAT HE BECAME IS SEEN BY NORMAL PEOPLE AS A POSITIVE THING NOT A NEGATIVE ONE EVEN MORE GRIEVOUS IS HIS REMARK OF TR AS A SOMETHING OF A JERK AS AN ADULT HE GIVES ABSOLUTELY NO REASON WHY THIS RIDICULOUS CONCLUSION SHOULD BE DRAWN IS IT BECAUSE ROOSEVELT MADE SOME MISTAKES ROOSEVELT HAD THE COURAGE TO ACT AND TO ACT ON THE WORLD STAGE MR SHRIBMAN SHOULD REACQUAINT HIMSELF WITH TR'S FAMOUS WORK THE MAN IN THE ARENA PERHAPS THEN HE WOULDN'T BE SO QUICK TO JUDGE SOME OF HISTORY'S GREAT MEN 9309090087 930909 GM RETIREES TO BE CHARGED FOR INSURANCE PLAN TO CUT HEALTH COSTS WOULD RAISE PREMIUMS FOR CERTAIN MANAGERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP STRUGGLING TO CONTAIN MEDICAL COSTS THAT AVERAGE NEARLY 1500 A VEHICLE WILL FOR THE FIRST TIME CHARGE RETIREES PREMIUMS FOR HEALTH INSURANCE AND GM IS RAISING THE MEDICAL PREMIUMS IT ALREADY CHARGES MANY ACTIVE MANAGEMENT PERSONNEL GM'S DECISION TO DEDUCT AS MUCH AS 107 A MONTH FROM SALARIED RETIREE PENSION CHECKS AND AS MUCH AS 25 MORE A MONTH FROM ACTIVE WHITECOLLAR EMPLOYEES' PAYCHECKS COMES AS THE AUTO GIANT IS GIRDING FOR A BATTLE OVER HEALTHCARE COSTS WITH THE UNITED AUTO WORKERS THE MOVE ALSO WILL REVERBERATE IN WASHINGTON WHERE THE CLINTON ADMINISTRATION IS GEARING UP TO WIN PASSAGE OF A NATIONAL HEALTHCARE PROGRAM AIMED AT REINING IN MEDICALCOST INFLATION IN THE ABSENCE OF A NATIONAL HEALTHCARE ALTERNATIVE GM PRESIDENT JOHN F SMITH JR HAS VOWED THAT GM WILL PRESS ITS 267000 BLUECOLLAR WORKERS TO JOIN GM'S 73000 US SALARIED STAFFERS IN SHARING THE BURDEN OF ESCALATING HEALTH COSTS GM TOOK A 21 BILLION CHARGE IN 1992 TO REFLECT ITS MASSIVE LIABILITY FOR RETIREE MEDICAL BENEFITS ITS CONTINUING MEDICAL COSTS PER VEHICLE ARE MORE THAN DOUBLE THOSE OF RIVALS FORD MOTOR CO AND CHRYSLER CORP BUT THE UAW HAS VOWED TO FIGHT ANY ASSAULT ON ITS MEDICAL BENEFITS WHICH COVER HOSPITAL CHARGES FROM THE FIRST DOLLAR THE UAW AND GM WILL NEGOTIATE A NEW NATIONAL LABOR AGREEMENT THIS FALL BUT ONLY AFTER THE UNION REACHES A PATTERNSETTING DEAL WITH FORD IF FORD ABANDONS ITS EFFORT TO WRING CONCESSIONS FROM THE UAW ON MEDICAL COVERAGE THAT WOULD STRENGTHEN THE UNION'S HAND GOING INTO TALKS AT GM MR SMITH MEANWHILE RISKS UNDERMINING MORALE AMONG A SALARIED STAFF ALREADY BESIEGED BY THREE YEARS OF CANCELED BONUSES REPEATED MANAGEMENT SHUFFLES AND JOB CUTBACKS GM'S 102000 SALARIED RETIREES ARE SURE TO PROTEST GM'S DECISION TO START CHARGING THEM PREMIUMS WHICH COULD BE AS HIGH AS 107 A MONTH FOR FAMILY COVERAGE UNDER A HEALTH MAINTENANCE ORGANIZATION I'M SURE THERE ARE FOLKS WHO ARE UNHAPPY WITH ANY INCREASE BUT IT'S STILL A VERY COMPETITIVE PACKAGE A GM SPOKESMAN SAID GM'S SALARIED RETIREES WERE WARNED LAST YEAR THAT THEY COULD BEGIN PAYING PREMIUMS FOR HEALTH COVERAGE GM SAID IN LETTERS MAILED EARLIER THIS WEEK THAT AS OF JAN 1 1994 AN INDIVIDUAL RETIREE ON MEDICARE WHO ALSO ENROLLS IN AN HMO WILL PAY A MAXIMUM PREMIUM OF 20 A MONTH A RETIREE NOT ELIGIBLE FOR MEDICARE COULD PAY A MAXIMUM OF 39 A MONTH FOR HMO COVERAGE A RETIREE WITH DEPENDENTS AND NO MEDICARE COULD PAY AS MUCH AS 107 A MONTH FOR HMO COVERAGE OR 31 A MONTH FOR GM'S REGULAR ENHANCED INSURANCE PACKAGE GM SALARIED WORKERS WHO ENROLL IN A PREFERRED PROVIDER ORGANIZATION COULD PAY MAXIMUM MONTHLY PREMIUMS OF 160 A MONTH FOR A FAMILY IN 1994 UP FROM A MAXIMUM OF 140 NOW DENTAL COVERAGE WHICH HAD COME WITHOUT A MONTHLY PREMIUM NOW WILL COST A WHITECOLLAR WORKER WITH A FAMILY 5 A MONTH 9309090086 930909 YOUR MONEY MATTERS HOMEOWNERS FIND IT PAYS TO REFINANCE YET AGAIN BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL WITH INTEREST RATES CONTINUING TO FALL REFINANCING YOUR MORTGAGE MAY BE A SMART MOVE EVEN IF YOU DID IT AS RECENTLY AS THREE MONTHS AGO THE OLD RULE OF THUMB WAS THAT THE DIFFERENCE BETWEEN THE INTEREST RATE ON YOUR OLD HOME LOAN AND THE RATE ON A NEW MORTGAGE HAD TO BE AT LEAST TWO PERCENTAGE POINTS TO MAKE REFINANCING WORTHWHILE NOT ANY MORE AS MORTGAGE RATES PLUMMET TO 25YEAR LOWS AND LENDERS RUSH TO GRAB A PIECE OF THE REFINANCING BOOM MANY ARE OFFERING NOCOST LOANS THERE ARE NO POINTS THE UPFRONT FEE BASED ON A PERCENTAGE OF THE MORTGAGE AND THE LENDER PAYS THE CLOSING COSTS AS A RESULT JUST A HALF A PERCENTAGE POINT DIFFERENCE IN RATES MAY BE ENOUGH TO MAKE REFINANCING ATTRACTIVE FOR SOME HOMEOWNERS TAKE DAVID DIESSLIN A FORT WORTH TEXAS FINANCIAL PLANNER HE HAS REFINANCED FIVE TIMES IN THE PAST TWO YEARS MOST RECENTLY BRINGING HIS MORTGAGE RATE DOWN TO 75 FROM 8 THE MONTHLY SAVING IS JUST 50 ON A 30YEAR LOAN BUT BECAUSE THERE WERE NO COSTS INVOLVED IT WAS WORTH IT I ADVISE CLIENTS TO DO THE SAME HE SAYS IT MAKES NO SENSE NOT TO IT USED TO BE THAT TO FIGURE OUT HOW MUCH YOU'D SAVE ON A REFINANCING YOU'D ADD UP ALL THE COSTS INCLUDING POINTS AND SUCH THINGS LIKE LAWYERS' FEES APPLICATIONS APPRAISALS AND FILING PAPERWORK AT THE COUNTY COURTHOUSE AND DIVIDE THE TOTAL BY THE DIFFERENCE IN YOUR MONTHLY PAYMENT THE RESULT WOULD BE THE NUMBER OF MONTHS IT WOULD TAKE TO BREAK EVEN SINCE THE COSTS COULD EASILY ADD UP TO 3 TO 5 OF THE VALUE OF THE LOAN OR 4500 TO 7500 ON A 150000 MORTGAGE IT WAS USUALLY EQUAL TO A PERIOD OF SEVERAL YEARS TODAY CALCULATING THE SAVINGS WITH A NOCOST REFINANCING IS A SIMPLE MATTER OF SUBTRACTING THE NEW PAYMENT FROM THE OLD PAYMENT IT MAKES COMPETITIVE SHOPPING A REAL SNAP SAYS PAUL HAVEMANN VICE PRESIDENT OF HSH ASSOCIATES A BUTLER NJ CONCERN THAT TRACKS MORTGAGE RATES EVEN LENDERS THAT AREN'T ADVERTISING NOCOST MORTGAGES MAY BE WILLING TO OFFER THEM JUST ASK HE ADVISES THE TERM NOCOST IS SOMETHING OF A MISNOMER BECAUSE RATES ON SUCH LOANS ARE USUALLY AT LEAST HALF A PERCENTAGE POINT HIGHER THAN LOANS WITH POINTS AND CLOSING COSTS BUT MORTGAGE RATES ARE FALLING SO FAST THAT EVEN A SLIGHTLY HIGHER RATE MAY OFFER SIGNIFICANT SAVINGS THE AVERAGE RATE ON A 30YEAR FIXEDRATE LOAN WITH ABOUT 15 POINTS WAS 810 A YEAR AGO ACCORDING TO HSH COMPARED WITH 682 NOW EVEN IF THE NOCOST LOAN CARRIES A 75 RATE A HOMEOWNER WITH A 150000 MORTGAGE COULD STILL SAVE 62 A MONTH BY REFINANCING LAST YEAR'S LOAN MR DIESSLIN THE FORT WORTH PLANNER SAYS HE ADVISES CLIENTS TO PUT THEIR MONTHLY SAVINGS INTO A TAXADVANTAGED RETIREMENT PLAN AND INVEST THE CASH THEY WOULD HAVE PAID IN UPFRONT CLOSING COSTS THEY HAVE A CAN'T LOSE SITUATION HE SAYS OVER TIME THE SAVINGS CAN ADD UP TO AN ENORMOUS AMOUNT ASSUMING JUST A 5 RETURN WHICH IS ONLY SLIGHTLY MORE THAN FIVEYEAR BANK CERTIFICATES OF DEPOSIT ARE PAYING THESE DAYS A HOMEOWNER SAVING JUST 50 A MONTH WOULD HAVE MORE THAN 41000 AFTER 30 YEARS HOMEOWNERS LIKE THE FLEXIBILITY TOO IN SWAMPSCOTT MASS A BOSTON SUBURB PAUL JOHNSON AND PAULA POPEO ARE ABOUT TO REFINANCE THEIR HOME MORTGAGE FOR THE THIRD TIME SINCE LAST FALL THE LATEST MOVE WILL GET THEM A 7 RATE ON A 15YEAR 145000 MORTGAGE HALF A PERCENTAGE POINT LOWER THAN THEIR CURRENT RATE AND 50 LESS IN MONTHLY PAYMENTS IF YOU STICK AROUND FOR 15 YEARS 600 A YEAR ADDS UP SAYS MR JOHNSON A LAWYER IN BOSTON AND IF I DECIDE TO SELL NEXT YEAR I DON'T HAVE TO WORRY ABOUT RECOUPING POINTS AND CLOSING COSTS ALTHOUGH THERE MAY BE SOME VARIATIONS BECAUSE OF STATE REGULATIONS USUALLY THERE REALLY IS NOTHING TO PAY UPFRONT RON ROGE A FINANCIAL PLANNER IN CENTEREACH NY SAYS ONE OF HIS CLIENTS ACTUALLY GOT A 250 CHECK FROM THE BANK AT THE CLOSING TO COVER THE APPLICATION FEE THERE ARE NO NATIONWIDE STATISTICS ON NOCOST MORTGAGES BUT LENDERS SAY THEY'RE INCREASING IN POPULARITY ABOUT HALF THE REFINANCING APPLICANTS AT COUNTRYWIDE FUNDING CORP A NATIONWIDE LENDER BASED IN PASADENA CALIF ARE TAKING THE NOCOST ROUTE THESE DAYS SAYS JERRY BAKER MANAGING DIRECTOR ON 30YEAR FIXEDRATE REFINANCIN COUNTRYWIDE CHARGES 6375 FOR BORROWERS PAYING CLOSING COSTS AND 2125 POINTS 65 FOR BORROWERS PAYING 15 POINTS AND COSTS AND 7375 FOR THOSE CHOOSING THE NOPOINTS NOFEES OPTION FINANCIAL ADVISERS SAY IT DOES PAY TO CRUNCH THE NUMBERS BECAUSE HOMEOWNERS WHO REASONABLY EXPECT TO STAY WHERE THEY ARE FOR FIVE YEARS OR LONGER MAY FIND THAT TAKING THE LOWER RATE AND PAYING THE COSTS IS A BETTER DEAL BUT FOR MANY THE NOCOST OPTION LOOKS AWFULLY GOOD IT'S TAKING WHAT YOU CAN GET FOR FREE SAYS ROGER HARRINGTON A MORTGAGE ADVISER IN WHITE BEAR LAKE MINN IF INTEREST RATES RISE YOU'RE BETTER OFF THAN YOU WERE AND IF THEY GO DOWN YOU DO IT AGAIN 9309090084 930909 INTERNATIONAL PRESSURE TO HOST JACKSON CONCERT MOUNTS IN SEOUL BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA MUSIC SUPERSTAR MICHAEL JACKSON HAS SUBMITTED A SECOND APPLICATION TO PERFORM IN SEOUL INCREASING THE PRESSURE ON THE GOVERNMENT TO RECONSIDER ITS REFUSAL MR JACKSON'S TROUBLES WITH SOUTH KOREA HAVE NOTHING TO DO WITH THE LOS ANGELES POLICE DEPARTMENT'S INVESTIGATION OF THE SINGER INSTEAD A SPOKESMAN FOR CULTURE AND SPORTS MINISTER LEE MIN SUP EXPLAINED THAT MR JACKSON'S FIRST APPLICATION WAS REJECTED BECAUSE A JACKSON CONCERT WOULD POSE PUBLIC SAFETY PROBLEMS AND ENCOURAGE RECKLESS SPENDING AT A TIME WHEN THE GOVERNMENT IS WAGING AN ANTICORRUPTION DRIVE STRESSING AUSTERITY AND TRADITIONAL VALUES THE MINISTRY SPOKESMAN CITED THE DEATHS BY SUFFOCATION OF TWO GIRLS AT A CONCERT BY THE ROCK BAND NEW KIDS ON THE BLOCK IN SEOUL TWO YEARS AGO THE SPOKESMAN ALSO SAID MR JACKSON'S DEMAND FOR GUARANTEED CONCERT RECEIPTS OF ABOUT 2 MILLION WAS TOO HIGH THE DECISION MAKES SOUTH KOREA THE ONLY COUNTRY TO BAN A PERFORMANCE BY MR JACKSON NOW ON A WORLD CONCERT TOUR THAT INCLUDES BEIJING AND MOSCOW HIS PROMOTERS SAY IT HAS CAUSED BLACK LEADERS IN THE US LED BY FORMER LOS ANGELES MAYOR TOM BRADLEY TO CAUTION THE SOUTH KOREAN GOVERNMENT AGAINST DOING ANYTHING THAT COULD FURTHER INFLAME RELATIONS BETWEEN BLACK AMERICANS AND ETHNIC KOREANS IN THE US MR BRADLEY SENT A LETTER ON THE SUBJECT TO PRESIDENT KIM YOUNG SAM THIS WEEK AND SOURCES IN MICHAEL JACKSON'S CAMP SAY A LETTER FROM JESSE JACKSON WILL BE GIVEN TO THE PRESIDENT WITHIN DAYS THE CONTROVERSY COMES AT AN AWKWARD TIME FOR SOUTH KOREA WHICH IS TRYING TO SHED ITS IMAGE AS A CULTURALLY ISOLATED COUNTRY AND PROMOTE ITSELF AS A TOURIST DESTINATION SOUTH KOREA'S INTERNATIONAL EXPOSITION WHICH BEGAN AUG 7 AND ENDS NOV 7 HAS ATTRACTED FEWER FOREIGN VISITORS THAN EXPECTED THE EXPO HAS BEEN BILLED AS A SPRINGBOARD FOR VISIT KOREA YEAR WHICH BEGINS JAN 1 FOLLOWING THE ANNOUNCEMENT OFFICIALS FROM SOUTH KOREA'S TRADE AND FOREIGN AFFAIRS MINISTRIES GENTLY LOBBIED MR LEE TO RECONSIDER LOCKING OUT A SUPERSTAR THEY SAID WOULD STRAIN USKOREAN RELATIONS AND JEOPARDIZE THE VISIT KOREA YEAR PROMOTION WITHIN DAYS US LAWMAKERS JOINED THE FRAY IN A LETTER DATED AUG 24 US REP JULIAN DIXON URGED SOUTH KOREA TO REVERSE THE DECISION THE REPRESENTATIVE'S LOS ANGELES CONSTITUENCY INCLUDES A LARGE KOREANAMERICAN COMMUNITY MR JACKSON'S PROMOTERS LOS ANGELESBASED TAE WON ENTERTAINMENT SAID THEY WERE PARTICULARLY DISAPPOINTED WITH THE DECISION BECAUSE OF THE CONCILIATORY TONE OF THEIR APPLICATION AWARE OF THE MINISTRY'S APPREHENSIONS ABOUT ROCK CONCERTS THEY PROPOSED A FEE LOWER THAN WHAT THE SINGER NORMALLY COMMANDS MR JACKSON WHO HAS A KOREAN SISTERINLAW ALSO PROMISED TO VISIT EXPO A TWOHOUR DRIVE SOUTH OF SEOUL DURING HIS TWODAY STAY SHOULD THE MINISTRY APPROVE MR JACKSON'S SECOND BID THE SINGER WOULD APPEAR AT SEOUL'S OLYMPIC STADIUM NOV 13 AND 14 PROMOTERS SAY THEY NEED A REPLY FROM THE MINISTRY BY MONDAY TO SCHEDULE THE DATE WHICH WOULD REQUIRE THE SINGER HIS ENTOURAGE AND TWO 747S CARRYING PROPS TO FLY TO SEOUL FROM A CONCERT IN PUERTO RICO 9309090083 930909 ENVIRONMENT RIVAL UTILITIES LET CLIENT PICK BEST ENERGY MIX BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES SOUTHERN CALIFORNIA'S LARGEST ELECTRIC AND GAS UTILITIES WHICH TYPICALLY COMPETE FEROCIOUSLY AGAINST EACH OTHER HAVE JOINED FORCES FOR AN UNUSUAL ENERGY CONSERVATION PROJECT THAT COULD SPUR MORE SUCH VENTURES NATIONWIDE THE CONCEPT INTENDED TO ALLOW CUSTOMERS TO ACHIEVE OPTIMAL SAVINGS BY SIMULTANEOUSLY RETROFITTING EQUIPMENT THAT RUNS ON ELECTRICITY AND EQUIPMENT THAT USES NATURAL GAS IS BELIEVED TO BE THE FIRST COOPERATIVE EFFORT OF ITS KIND BETWEEN UTILITIES THAT NORMALLY COMPETE HEADTOHEAD FOR NEW BUSINESS IN THIS CASE THE CUSTOMER CAN CHOOSE BETWEEN INCREASED RELIANCE ON GAS OR ELECTRICITY IN ORDER TO ACHIEVE MAXIMUM TOTAL SAVINGS SCECORP'S SOUTHERN CALIFORNIA EDISON UNIT AND PACIFIC ENTERPRISES' SOUTHERN CALIFORNIA GAS UNIT WILL PAY THE ENTIRE COST OF INSTALLING NEW MOREEFFICIENT BOILERS LIGHTS AIRCONDITIONING SYSTEMS PUMPS AND COOLING EQUIPMENT IN A 17STORY OFFICE TOWER IN NEWPORT BEACH CALIF THE UTILITIES ARE SLATED TO BE REPAID FROM THE ANTICIPATED SAVINGS WITHIN A MAXIMUM OF 12 YEARS THE CONSTRUCTION WORK ALREADY IS UNDER WAY BUT THE COMPANIES HAVEN'T YET ANNOUNCED THE INITIATIVE SUPPORTED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION AND A NONPROFIT ENERGY CONSERVATION GROUP THE PROJECT IS THE INITIAL STEP OF A LONGTERM ENERGYSAVING PLAN INVOLVING THE TWO UTILITIES AND PRIVATELY HELD IRVINE CO WHAT IS UNIQUE ABOUT THE IRVINE INITIATIVE SAID DANIEL FESSLER PRESIDENT OF THE COMMISSION IS THAT EFFICIENCY GOALS ARE ACHIEVED THROUGH A PRIVATE PARTNERSHIP BETWEEN THE CUSTOMER AND THE UTILITIES WITHOUT REGULATORY MANDATE THE IRVINE PROJECT IS RELATIVELY SMALL WITH IMPROVEMENTS EXPECTED TO COST ABOUT 15 MILLION BUT ALL OF THE PARTIES BELIEVE THAT IT PAVES THE WAY FOR LARGER MORE AMBITIOUS CONSERVATION PROJECTS DOWN THE ROAD WE THINK THERE ARE MANY MORE BUILDINGS THAT COULD BE AND SHOULD BE UPGRADED USING THE SAME APPROACH SAID SAT TAMARIBUCHI IRVINE CO'S SENIOR DIRECTOR FOR ENVIRONMENTAL ISSUES BOTH UTILITIES SAID THE GOAL IS TO USE MARKET FORCES RATHER THAN STATEIMPOSED REGULATORY DIRECTIVES TO CONTROL POLLUTION AND IMPROVE THE COMPETITIVE POSITION OF ECONOMICALLY PRESSED BUSINESSES IN THE STATE WE OFFER ENERGY EFFICIENCY AS A STRATEGIC WEAPON IN THE COMPETITIVE STRUGGLE SAID JOHN BRYSON SCE'S CHAIRMAN THE PROJECT HAD ITS ROOTS IN A FIRSTOFITSKIND AGREEMENT QUIETLY SIGNED MORE THAN A YEAR AGO BY THE LARGE LAND DEVELOPER AND THE TWO UTILITIES UNDER THAT ARRANGEMENT THE UTILITIES PLEDGED TO WORK TOGETHER TO HELP IRVINE CO IDENTIFY POTENTIAL ENERGY SAVINGS THROUGHOUT ITS PROPERTIES SPECIFICALLY THE PROJECT IN THE ORANGE COUNTY CITY OF NEWPORT BEACH INVOLVES A 286000SQUAREFOOT BUILDING OWNED BY IRVINE CO WHICH WILL RECEIVE A NEW AIR DISTRIBUTION SYSTEM AND A STATEOFTHEART GASFIRED BOILER FEATURING REDUCED NITROGEN OXIDE EMISSIONS THE BUILDING WILL NOW HAVE A GASFUELED RATHER THAN AN ELECTRIC COOLING SYSTEM IRVINE CO OFFICIALS SAID THAT WHAT THEY LEARN FROM THE PROJECT WILL HELP THEM DESIGN RESIDENTIAL BUILDINGS THAT MAY SOMEDAY HAVE THEIR OWN ELECTRIC GENERATING PLANTS OR FUEL CELLS APART FROM FREEING THE PROPERTY'S OWNER FROM HAVING TO INVEST A PENNY UP FRONT THE PROJECT ALSO IS SIGNIFICANT BECAUSE IT RELIES ON THE SUPPORT OF THE NEARBY CITY OF IRVINE AS WELL AS CALIFORNIA AND ORANGE COUNTY REGULATORS CITY OFFICIALS ARE EXPECTED TO FORMALLY SIGN AN AGREEMENT SPELLING OUT THEIR SUPPORT FOR SUCH CONSERVATION EFFORTS MR FESSLER OF THE STATE UTILITY COMMISSION WENT OUT OF HIS WAY TO STRESS THAT THE CONCEPT GIVES CUSTOMERS GREATER FLEXIBILITY TO DETERMINE THE MIX OF SERVICES THEY WANT TO PURCHASE FROM GAS AND ELECTRIC UTILITIES IT'S ONE OF THOSE RARE INSTANCES IN WHICH EVERYBODY AND MOST NOTABLY THE CONSUMER WINS HE SAID FROM AN ENVIRONMENTAL STANDPOINT THE SPONSORS PROJECT THAT THE ENERGY SAVINGS WILL MEAN SUBSTANTIAL REDUCTIONS IN NITROGEN OXIDES SULFUR OXIDES AND CARBON EMISSIONS ASSOCIATED WITH THE BUILDING'S OPERATION IN YEARS TO COME IRVINE CO'S DECISION TO LAUNCH THE INITIATIVE MAY BE COPIED BY OTHER DEVELOPERS AND REALESTATE CONCERNS ACROSS THE COUNTRY BUT IN THE SHORT RUN THE MOST SIGNIFICANT IMPACT WILL BE ON SUBURBAN ORANGE COUNTY THE SPRAWLING AREA SOUTH OF LOS ANGELES WHERE IRVINE CO OWNS ONESIXTH OF THE LAND AND PLANS TO CONTINUE BUILDING FOR DECADES MR TAMARIBUCHI SAID THAT THE COMPANY'S LONGRANGE DEVELOPMENT PLANS SEEK TO FACTOR IN ENERGY EFFICIENCY AND ALTERNATIVE ENERGY SOURCES AS PART OF THE OVERALL COMMUNITY BLUEPRINT 9309090082 930909 MONEYFUND YIELDS WERE LITTLE CHANGED IN MOST RECENT WEEK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE GENERALLY UNCHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 267 FROM 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT INVESTORS ADDED 528 BILLION TO THE TAXABLE FUNDS TRACKED BY THE ASHLAND MASS NEWSLETTER SIX ADDITIONAL FUNDS REPORTED DATA FOR THE LATEST WEEK BRINGING THE TOTAL TO 614 WITH ASSETS OF 47038 BILLION THE NEWSLETTER REPORTED IN THE PRECEDING WEEK ASSETS OF 608 TAXABLE FUNDS DROPPED BY 1194 BILLION SUCH LARGE WEEKTOWEEK ASSET FLUCTUATIONS AREN'T UNCOMMON AS INVESTORS INSTITUTIONS IN PARTICULAR MOVE MONEY IN AND OUT DEPENDING ON HOW THE BOND AND STOCK MARKETS ARE DOING INSTITUTIONAL INVESTORS ACCOUNTED FOR 349 BILLION OF THE INFLOW INTO TAXABLE FUNDS IN THE LATEST WEEK WHILE INDIVIDUAL INVESTORS ADDED 179 BILLION BOTH THE AVERAGE SEVENDAY AND 30DAY SIMPLE YIELDS ON TAXABLE FUNDS REMAINED AT 264 IN THE LATEST WEEK WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 268 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS THE AVERAGE TAXFREE SEVENDAY COMPOUND YIELD SLIPPED TO 198 FROM 202 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 309 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 328 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF TAXEXEMPT FUNDS GREW BY 184 BILLION TO 10379 BILLION ACCORDING TO MONEY FUND REPORT THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY LENGTHENED BY TWO DAYS TO 69 DAYS THE LONGEST IT HAS BEEN SINCE 1986 MONEYFUND MANAGERS ARE LENGTHENING THE MATURITY IN AN EFFORT TO RAISE YIELDS ACCORDING TO THE NEWSLETTER 9309090081 930909 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 307 60 TO 89 DAYS 308 90 TO 119 DAYS 315 120 TO 239 DAYS 322 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 313 60 DAYS 313 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 256 TWO MONTHS 259 THREE MONTHS 270 SIX MONTHS 286 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 303 ONE MONTH 306 THREE MONTHS 318 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 90 DAYS 312 120 DAYS 312 150 DAYS 312 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 1/8 3 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE 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 652 60 DAYS 660 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 652 60 DAYS 662 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 485 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 9309090080 930909 POLITICS & POLICY AGRICULTURE CHIEF ESPY NO WASHINGTON NAME WINS FAME ELSEWHERE WITH FAST AID IN DISASTERS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL AT A RECENT MEETING WITH THE US SECRETARY OF AGRICULTURE AND OTHER GOVERNMENT OFFICIALS IN A SMALL ILLINOIS TOWN A SECURITY GUARD STOPPED THE LONE BLACK PERSON ON HIS WAY INTO THE ROOM WHO DO YOU THINK YOU ARE THE GUARD ASKED THE AGRICULTURE SECRETARY REPLIED THE MAN AND WALKED ON PERHAPS IT ISN'T SURPRISING THAT THE GUARD DIDN'T RECOGNIZE MIKE ESPY ON THE SURFACE AT LEAST HE'S THE MOST UNLIKELY HOLDER OF THE AGRICULTURE JOB IN A LONG TIME A SOFTSPOKEN BLACK MAN FROM THE SOUTH IN A JOB NORMALLY INHABITED BY GREGARIOUS WHITE GUYS FROM THE MIDWEST MOREOVER IN WASHINGTON HIS JOB IS CONSIDERED A POLITICAL BACKWATER AND HE HIMSELF IS OVERSHADOWED ON MOST NATURALRESOURCES ISSUES BY THE MORE FORCEFUL AND MEDIASAVVY SECRETARY OF THE INTERIOR BRUCE BABBITT OUTSIDE THE WASHINGTON BELTWAY THOUGH IT'S A DIFFERENT STORY THANKS LARGELY TO THE RAPID AND SWEEPING GOVERNMENT RESPONSES TO THE MASSIVE FLOODING AND OTHER DISASTERS MR ESPY HAS CONFRONTED IN HIS FIRST EIGHT MONTHS IN OFFICE THE FORMER CONGRESSMAN FROM MISSISSIPPI IS WINNING FAVORABLE REVIEWS IN THE HEARTLAND FROM GROUPS RANGING FROM FAMILY FARMERS TO PUBLICINTEREST ORGANIZATIONS OUT IN THE COUNTRY MIKE ESPY IS ONE OF THE STARS OF THE ADMINISTRATION SAYS KEITH HEARD EXECUTIVE VICE PRESIDENT OF THE NATIONAL CORN GROWERS ASSOCIATION I'D BE WILLING TO BET THAT HE HAS GOTTEN MORE DONE IN SIX MONTHS THAN ANY OTHER MEMBER OF THE CABINET LATELY MOST OF WHAT MR ESPY HAS GOTTEN DONE HAS CENTERED ON THE MIDWEST FLOODS WHICH HAVE CAUSED MORE THAN 25 BILLION IN CROP LOSSES OVER 23 MILLION AFFECTED ACRES IN NINE STATES THE AGRICULTURE SECRETARY HAS MADE 12 TRIPS TO THE REGION SINCE THE RAINS BEGAN IN FACT HE NOTES WITH REGRET THAT HE WAS OUT OF TOWN EVERY WEEKEND IN JULY WHEN HIS KIDS WERE VISITING FROM MISSISSIPPI JUST BY BEING THERE HE AND THE PRESIDENT SHOWED A LOT OF CONCERN SAYS ROBERT NOOTER DIRECTOR OF GOVERNMENT RELATIONS FOR THE AMERICAN FARM BUREAU FEDERATION WE HAVEN'T GOTTEN MANY OF THOSE CALLS IN WHICH PEOPLE SAY NO ONE'S CONCERNED ABOUT MY PROBLEM' AS WE HAVE IN PAST DISASTERS IN AN INTERVIEW MR ESPY BRAGS THAT THE DEPARTMENT SO FAR HAS DELIVERED ON HIS PROMISE TO GET DISASTER CHECKS OUT WITHIN TWO WEEKS AFTER RECEIVING APPLICATIONS FROM FARMERS WHOSE CROPS WERE WIPED OUT OR WHO WERE UNABLE TO PLANT BECAUSE OF THE WATER MR ESPY ALSO WON WHITE HOUSE BUDGET OFFICE SUPPORT FOR A SENATESUPPORTED CHANGE IN A COMPLICATED PAYMENT FORMULA MEANING THAT FARMERS WILL RECEIVE TWICE AS MUCH FOR CROP LOSSES IN THIS DISASTER AS IN PREVIOUS ONES ALL THAT HAS SCORED SOME IMPORTANT POLITICAL POINTS FOR THE ADMINISTRATION IN A REGION THAT IS NOT THE FRIENDLIEST TOWARD IT I'M NOT A VERY GOOD DEMOCRAT BUT I'VE BEEN MUCH IMPRESSED BY HIS SENSITIVITY TO OUR PROBLEM SAYS CHET SEDORE A CORN AND SOYBEAN FARMER IN OTTUMWA IOWA 90 MILES SOUTH OF DES MOINES CRITICS THOUGH NOTE THAT IT'S EASY TO BUY POPULARITY WITH FEDERAL LARGESSE IN CONTRAST TO MR ESPY'S OPENHANDED APPROACH OTHER ADMINISTRATIONS HAVE RESISTED PLEAS TO EASE ELIGIBILITY REQUIREMENTS AND TAKE OTHER STEPS TO INCREASE PAYMENTS CAROL COX WAIT PRESIDENT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET SAYS SHE UNDERSTANDS THE MOTIVATION FOR THE ADMINISTRATION'S ACTIONS WE HAVE THIS NOSTALGIC FEELING ABOUT SMALL FAMILY FARMS COMBINED WITH OUR INCLINATION TO BE COMPASSIONATE BUT SHE ADDS IT'S A DISASTER FOR THE FEDERAL BUDGET MOREOVER PARTLY BECAUSE OF MR ESPY'S BACKGROUND AND LONGSTANDING INTEREST IN SUCH ISSUES AS RURAL DEVELOPMENT MANY PEOPLE IN THE AGRICULTURE DEPARTMENT'S TRADITIONAL FARM CONSTITUENCIES REMAIN CONCERNED THAT THEIR ISSUES MAY BE DEEMPHASIZED IN HIS REGIME IS PRODUCTION AGRICULTURE LOSING INFLUENCE AT THE AGRICULTURE DEPARTMENT AND WITHIN THE ADMINISTRATION TO CONSUMER AND ENVIRONMENTAL CONCERNS AND RURAL DEVELOPMENT ASKS JOHN CAMPBELL ASSISTANT VICE PRESIDENT FOR CORPORATE RELATIONS AT AG PROCESSING INC A SOYBEANPROCESSSING COOPERATIVE IN OMAHA NEB HE ARGUES THAT THE BOTTOM LINE ON MR ESPY'S TENURE WILL DEPEND ON ISSUES HE HAS YET TO FULLY GRAPPLE WITH SUCH AS EXPORT POLICY ACREAGEREDUCTION REQUIREMENTS AND GOVERNMENT PAYMENTS TO FARMERS BUSINESS INTERESTS ALSO ARE CONCERNED ABOUT WHETHER MR ESPY WILL TURN INTO A CAPTIVE OF CONSUMER GROUPS EVEN BUSINESS GROUPS THOUGH GENERALLY APPLAUD THE STEPS HE HAS TAKEN SO FAR TO IMPROVE THE MEATINSPECTION PROCESS AND BOOST FOOD SAFETY AN ISSUE PUSHED TO THE FORE BY THE CONTAMINATEDMEAT CRISIS THAT CAUSED DEATHS AND ILLNESSES IN THE WEST EARLY THIS YEAR IN THE MOST SWEEPING RESPONSE TO DATE THE DEPARTMENT IS REQUIRING SAFEHANDLING LABELS ON ALL RAW MEAT AND POULTRY PRODUCTS STARTING IN MIDOCTOBER MR ESPY HAS HAD HIS SHARE OF DISAPPOINTMENTS OF COURSE HE SAYS HE IS DISSATISFIED WITH HIS DEPARTMENT'S PROGRESS ON OVERHAULING MEAT AND POULTRY INSPECTIONS CONTENDING THAT RECENT INVESTIGATIONS OF PROCESSING PLANTS SHOW THAT THERE HAVE BEEN FLAWS IN THE EXECUTION OF OUR ORDERS WORD HAS TROUBLE BEING RECEIVED DOWN THE LINE THE SLOW PACE OF STAFFING THE AGENCY HAS HAMPERED DECISIONMAKING NOTABLY ON EFFORTS TO REORGANIZE HIS DEPARTMENT BIG PROBLEMS LIE AHEAD TOO THIS WEEK THE ADMINISTRATION UNVEILED INITIAL PLANS FOR STREAMLINING THE BLOATED AGENCY THAT EFFORT WILL EVENTUALLY INVOLVE ELIMINATING 1200 OF 14000 FIELD OFFICES AND WILL DRAW HOWLS OF PROTEST FROM AFFECTED TOWNS ACROSS THE COUNTRY AND THEIR LAWMAKERS MR ESPY ALSO CAN EXPECT INTENSIFYING OPPOSITION FROM MANY FARM GROUPS TO THE FREETRADE ACCORD WITH MEXICO AS THE ADMINISTRATION'S PUSH FOR CONGRESSIONAL APPROVAL OF THE PACT HEATS UP THIS FALL BEING THE FIRST BLACK AGRICULTURE SECRETARY BRINGS WITH IT SOME SPECIAL CHALLENGES ONE HE SAYS IS TO INCREASE THE APPRECIATION THAT BLACK GROUPS HAVE FOR AGRICULTURE I REMAIN DISAPPOINTED THAT THE BLACK COMMUNITY GENERALLY SPEAKING DOESN'T UNDERSTAND HOW VALUABLE AGRICULTURE AND AGRIBUSINESS ARE IN THEIR LIFE HE SAYS AT THE SAME TIME HE HAS BEEN PLEASANTLY SURPRISED AT HOW WELL HE HAS BEEN ACCEPTED BY THE LARGELY WHITE AGRICULTURE AND AGRIBUSINESS COMMUNITY I'VE BEEN TREATED WITH RESPECT HE SAYS NOBODY'S BEEN PUT OFF BY ME I'VE HAD NO FEELINGS OF REJECTION TO GET TO KNOW THE AGRIBUSINESS COMMUNITY MR ESPY HAS EMBARKED ON A SERIES OF DINNERS WITH CHIEF EXECUTIVES OF MAJOR AGRIBUSINESS COMPANIES AND HAS MADE SPECIAL EFFORTS AS WELL TO TRAVEL AND MEET WITH THE DEPARTMENT'S VARIOUS CONSTITUENCIES I THINK EVERYBODY WAS PRETTY GUARDED WHEN HE STARTED SAYS JIM NESSETH AN AGRICULTURE EXTENSION AGENT IN JACKSON COUNTY MINN BUT NOW PEOPLE OUT HERE FEEL COMFORTABLE AND A LITTLE BIT CONFIDENT THAT HE'S WORKING FOR THEM THAT HE'S WILLING TO GO THAT EXTRA MILE 9309090079 930909 ECONOMY FED SURVEY SUGGESTS ECONOMIC GROWTH REMAINS SLOW TO MODERATE ACROSS US BY LUCINDA HARPER AND ELIOT MORGAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ECONOMIC GROWTH REMAINS SLOW TO MODERATE AND INFLATION WELLBEHAVED ACROSS MUCH OF THE NATION THE LATEST SURVEY OF THE 12 FEDERAL RESERVE BANKS SUGGESTS THE REPORT WHICH COVERS THE SIX WEEKS ENDED AUG 31 UNDERSCORES OTHER SIGNS THAT THE RECOVERY MORE THAN TWO YEARS IN PROGRESS IS FAR FROM GAINING SIGNIFICANT MOMENTUM THOUSANDS OF JOBS DISAPPEARED FROM THE ECONOMY IN AUGUST THE MANUFACTURING SECTOR HAS BEEN WEAK THROUGHOUT THE SUMMER AND EXPORT GROWTH HAS BEEN DISHEARTENING AS MAJOR US TRADING PARTNERS ARE STILL IN AN ECONOMIC SLUMP THE FED FOUND THAT THE EAST AND WEST COASTS ARE THE WEAKEST REGIONS WHILE STATES IN THE MIDDLE OF THE COUNTRY ARE DOING BETTER THE REPORT WAS PREPARED FOR USE AT THE NEXT MEETING OF FED POLICY MAKERS SCHEDULED FOR SEPT 21 IN A WIRE SERVICE INTERVIEW FED VICE CHAIRMAN DAVID MULLINS MADE IT CLEAR THAT THE FED ISN'T LIKELY TO CUT INTEREST RATES DESPITE EVIDENCE THAT THE RECOVERY IS FAR FROM ROBUST IT'S HARD TO BELIEVE A LITTLE LOWER FED FUNDS RATE WOULD ASSUAGE THE FEARS OF CONSUMERS OR THE CONCERNS OF SMALL BUSINESSMEN HE TOLD REUTERS THE FEDERAL FUNDS RATE CONTROLLED BY THE FED IS THE RATE BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS THE FED SAID THAT CORPORATE RESTRUCTURING IS CONTINUING TO HINDER EMPLOYMENT GROWTH AND THAT CURBING LABOR COSTS APPEARS TO BE THE FAVORED OPTION FOR IMPROVING PROFITS IN VIEW OF UNCERTAINTY OVER SALES THE REPORT SUGGESTED THAT THE MANUFACTURING SECTOR MAY BE COMING BACK TO LIFE MANUFACTURING PRODUCTION AND SALES WERE REPORTED TO BE INCREASING IN MANY DISTRICTS HOWEVER OTHER INDICATORS SUGGEST THE NATION'S FACTORIES ARE STILL VERY WEAK A RECENT SURVEY OF PURCHASING MANAGERS SUGGESTED THAT MANUFACTURING ACTIVITY CONTRACTED IN AUGUST IN A SIGN THAT INTEREST RATES MAY FINALLY BE BOOSTING THE HOUSING SECTOR THE REPORT SAID HOME CONSTRUCTION WAS IMPROVING IN MANY REGIONS IN DALLAS AND MINNEAPOLIS IN PARTICULAR RESIDENTIAL CONSTRUCTION WAS REPORTED AS STRONG THE FED'S SURVEY ALSO SAID CONSUMER BORROWING IS UP IN MANY AREAS AROUND THE COUNTRY WHILE COMMERCIAL AND INDUSTRIAL LOANS ARE FLAT HERE IS A SUMMARY OF THE REPORT BY THE 12 FED DISTRICT BANKS BOSTON ECONOMIC ACTIVITY GREW SLOWLY RETAIL SALES WERE DISAPPOINTING THOUGH COSTS AND SELLING PRICES WERE UNCHANGED SUGGESTING CONSUMERS WERE HESITANT TO SPEND EMPLOYMENT IN MANUFACTURING REMAINED LEVEL BUT NONAUTORELATED WORKERS CAN EXPECT LAYOFFS NEW YORK SLIGHTLY MORE POSITIVE IN RECENT WEEKS RETAIL SALES WERE MIXED RENEWED INTEREST IN MIDMANHATTAN COMMERCIAL REAL ESTATE BUT HOME BUILDING REMAINED FLAT THE UNEMPLOYMENT RATE WAS DECLINING PHILADELPHIA ECONOMIC ACTIVITY REMAINED STEADY RETAIL SALES WERE SLOW ALTHOUGH AUTO DEALERS REPORTED THE UPWARD TREND IN SALES CONTINUED COMMERCIAL REAL ESTATE ACTIVITY REMAINED WEAK ESPECIALLY IN THE PHILADELPHIA CENTRAL BUSINESS DISTRICT CLEVELAND NEW GROWTH WAS BEING DRIVEN BY BRISK RETAIL SALES WITH STRONG DEMAND FOR AUTOS FURNITURE AND APPLIANCES MANUFACTURERS REPORTED STRONG ORDERS RICHMOND ECONOMY CONTINUED TO GROW SLUGGISHLY WHILE HOT DRY WEATHER BOOSTED TOURISM IT DAMPED SHOPPER TRAFFIC AT RETAIL OUTLETS PUSHED UP MANUFACTURERS' COSTS AND DEVASTATED CROPS CREDIT DEMAND INCREASED SLIGHTLY ATLANTA RETAIL SALES GAINS TAPERED OFF EARLY IN THE THIRD QUARTER AFTER A STRONG SHOWING IN THE FIRST AND SECOND QUARTERS DECLINING PRODUCTION AND ORDERS WERE REPORTED FROM THE APPAREL PACKAGING AND AEROSPACE INDUSTRIES CONSUMER SPENDING UP SLIGHTLY BUT COMMERCIAL LENDING WAS FLAT CHICAGO ECONOMIC EXPANSION PROCEEDED SLOWLY WITH MODEST IMPROVEMENTS IN CONSUMER SPENDING AND HOUSING MARKETS COMMERCIAL AND CONSUMER LENDING WAS SOMEWHAT STRONGER THOUGH MANUFACTURING ACTIVITY WAS FLAT ST LOUIS CONTINUED SLOW GROWTH FLOOD DAMAGE WAS WORSE THAN ORIGINALLY ESTIMATED WITH NEW FIGURES OF 2 BILLION TO 3 BILLION RESIDENTIAL CONSTRUCTION PICKED UP IN AREAS WHERE IT WAS LAGGING AND REMAINED GENERALLY STRONG BARGE TRAFFIC REOPENED ON MISSISSIPPI RIVER AND RESIDENTIAL CONSTRUCTION PICKED UP MINNEAPOLIS ECONOMIC CONDITIONS WERE POSITIVE EMPLOYMENT WAS GROWING ESPECIALLY AT SMALL AND MIDSIZED COMPANIES LAYOFFS AT TWO LARGE COMPANIES APPEAR TO BE THE RESULT OF CORPORATE RESTRUCTURING RATHER THAN SLACK DEMAND CONSTRUCTION WAS STRONG WHILE MANUFACTURING GREW AGRICULTURE WAS ONLY SECTOR WITH DECLINING OUTPUT KANSAS CITY MODERATE GROWTH CONTINUED RETAIL PRICES REMAINED STEADY AND SALES ROSE HOUSING ACTIVITY WAS INCREASING AND DEMAND WAS UP FOR CONSUMER LOANS AND HOME MORTGAGES THE ENERGY SECTOR CONTINUED TO IMPROVE DALLAS ECONOMY EXPANDED AT A MODERATE PACE COMPANIES REPORTED A PICKUP IN SALES AND EMPLOYMENT HOME BUILDING REMAINED STRONG AND THERE WERE INCREASED ORDERS FOR PRODUCERS OF STONE CLAY GLASS LUMBER AND FABRICATED METALS ORDERS FOR SEMICONDUCTORS AND TELECOMMUNICATIONS DEVICES INCREASED SAN FRANCISCO ECONOMIC ACTIVITY WAS MIXED BUT THE RECOVERY CONTINUES TO ELUDE CALIFORNIA ESPECIALLY IN AEROSPACE AND DEFENSERELATED INDUSTRIES TOURISM IN HAWAII SAGGED BUT CONDITIONS IMPROVED IN EASTERN WASHINGTON UTAH IDAHO AND NEVADA 9309090078 930909 CANADIAN UTILITIES LTD TO ISSUE SHARES DEBT FUND CAPITAL SPENDING EDMONTON ALBERTA CANADIAN UTILITIES LTD SAID IT AGREED TO ISSUE 185 MILLION CANADIAN DOLLARS US140 MILLION OF PREFERRED SHARES AND DEBENTURES AND THAT IT PLANS TO USE THE MONEY TO REDEEM EXISTING PREFERRED SHARES AND DEBENTURES AND TO FUND CAPITAL SPENDING THE EDMONTON GAS AND ELECTRICAL UTILITY'S TREASURER OWEN EDMONDSON SAID THAT AFTER THE REFINANCING THE COMPANY'S ANNUAL PREFERREDSHARE DIVIDEND OBLIGATIONS WOULD DROP BY C22 MILLION FROM C53 MILLION AND ITS ANNUAL INTEREST COSTS BY C250000 FROM C138 MILLION HE SAID CANADIAN UTILITIES PLANS TO SPEND C1436 MILLION OF THE PROCEEDS TO REDEEM TWO PREFERRED SHARE ISSUES AND C11 MILLION TO REDEEM CERTAIN OUTSTANDING DEBENTURES HE SAID IT WILL USE THE REMAINING C30 MILLION RAISED FROM THE NEW ISSUES TO PARTIALLY FUND THE COMPANY'S 1993 CAPITAL SPENDING PROGRAM CANADIAN UTILITIES SAID THE NEW SECURITIES WILL COMPRISE A PUBLIC ISSUE OF C125 MILLION OF 59 CUMULATIVE REDEEMABLE SECOND PREFERRED SHARES AND THE PRIVATE PLACEMENT OF C60 MILLION OF 725 DEBENTURES PRICED TO YIELD 7285 OVER 10YEAR TERMS MATURING SEPT 24 2003 IT SAID IT EXPECTS THE PREFERRED SHARE ISSUE TO CLOSE OCT 9309090077 930909 LAW LEGAL BEAT AMA TO FIGHT LIMITS ON DOCTORS' FEES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE AMERICAN MEDICAL ASSOCIATION HAS MAPPED OUT A COMBATIVE LEGAL STRATEGY TO SUPPLEMENT ITS LOBBYING EFFORT OVER PRESIDENT CLINTON'S HEALTH PLAN THE POWERFUL PHYSICIANS' GROUP HAS ENLISTED A MAJOR CHICAGO LAW FIRM TO EXPLORE THE LEGAL LIMITS ON VARIOUS CHANGES BEING CONSIDERED BY THE ADMINISTRATION IN A REPORT TO THE AMA THE LAW FIRM SIDLEY & AUSTIN HAS CONCLUDED THAT THE US CONSTITUTION PUTS TIGHT CONSTRAINTS ON HOW MUCH THE PLAN CAN LIMIT DOCTORS' FEES OR PATIENTS' ACCESS TO CARE SUCH LIMITS THE REPORT SAYS COULD VIOLATE THE FIFTH AMENDMENT AS AN UNFAIR TAKING OF PHYSICIANS' PROPERTY THE THREAT OF LEGAL ACTION FROM THE COUNTRY'S MOST IMPORTANT DOCTORS' ORGANIZATION IS CERTAIN TO BE AN UNWELCOME DISTRACTION TO OFFICIALS STILL HAGGLING OVER VARIOUS PROVISIONS IN THE PLAN CRITICS SAY THE AMA'S STRATEGY IS ONLY THE LATEST EXAMPLE OF A GROWING PROBLEM FOR POLICYMAKERS THE THREAT OF LITIGATION BY ADVOCACY GROUPS SEEKING TO INFLUENCE LEGISLATION THERE IS A TENDENCY TO SHOOT FROM THE HIP WITH PSEUDOCONSTITUTIONAL BULLETS WHEN THE POLITICAL TIDE SEEMS TO BE RUNNING IN A DIRECTION THAT YOU'RE AFRAID OF SAYS HARVARD LAW SCHOOL PROFESSOR LAURENCE TRIBE IT ISN'T SURPRISING THAT THE AMA WOULD TRY TO USE WHATEVER AMMUNITION IS AVAILABLE HE ADDS THE AMA'S GENERAL COUNSEL KIRK JOHNSON SAYS THE LAW FIRM'S REPORT WASN'T MEANT TO BE A PREPARATION FOR LITIGATION BUT WAS SIMPLY TO HELP US INFORM THE ADMINISTRATION ABOUT SOME LEGAL ISSUES INVOLVED IN HEALTH REFORM BUT MR JOHNSON ADDS WE WOULD SUE IF WE FELT THAT THERE WAS A DENIAL OF CONSTITUTIONAL RIGHTS AND THE PLAN WAS BAD LONGTERM HEALTH POLICY THE 32PAGE REPORT CONCLUDES THAT THE ADMINISTRATION CAN LEGALLY REGULATE HEALTHCARE PRICES ONLY IF IT ALLOWS DOCTORS A FAIR RATE OF REIMBURSEMENT THE REPORT SAYS THE PLAN MUST INCLUDE A WAY TO ADJUST PRICES TO TAKE ACCOUNT OF INDIVIDUAL DOCTORS' DIFFERENT TRAINING AND SKILLS IT ALSO SAYS SOCALLED GLOBAL BUDGETS COULD BE UNCONSTITUTIONAL IF THEY LIMIT PATIENTS' ABILITY TO SPEND THEIR OWN MONEY ON HEALTH CARE THE CLINTON PROPOSAL TO BE ANNOUNCED SEPT 22 APPEARS TO HAVE BACKED AWAY FROM THE IDEA OF IMPOSING WIDESPREAD PRICE CONTROLS ON ALL MEDICAL CARE BUT THE AMA MAY SUE EVEN IF THE PLAN CALLS FOR LESS SWEEPING RESTRICTIONS ON PATIENTS AND PRICES FOR EXAMPLE THE CLINTON PROPOSAL IS EXPECTED TO GIVE PATIENTS THE OPTION OF CHOOSING THEIR OWN DOCTORS AND PAYING FOR HEALTH CARE AS THEY NEED IT A PROPOSAL THE AMA FAVORS BUT THE DOCTORS' GROUP REMAINS CONCERNED THAT THE GOVERNMENT WILL IMPOSE RIGID FEE SCHEDULES ON SUCH FEEFORSERVICE CARE MOREOVER ANY CHANGES CONGRESS MAKES IN THE PLAN COULD TRIGGER OTHER LEGAL CONCERNS THE AMA'S MR JOHNSON SAYS IT'S TOO EARLY TO MAKE A JUDGMENT ABOUT WHETHER A LAWSUIT WILL BE NECESSARY HE SAYS THE AMA OFTEN HAS TURNED TO SIDLEY & AUSTIN SINCE THE MID1980S WHEN THE GROUP SAW THAT MORE AND MORE HEALTHCARE ISSUES WERE BEING IRONED OUT IN THE COURTS THE FIRM HAS HANDLED A VARIETY OF AMA CASES FROM DEFENDING DOCTORS IN ANTITRUST SUITS TO FILING BRIEFS IN RIGHTTODIE CASES BUT A LAWSUIT CHALLENGING THE CLINTON HEALTH PROPOSAL WOULD BE THE GROUP'S BIGGEST AND MOST VISIBLE COURTROOM BATTLE YET THE THREE PARTNERS WHO HELPED DRAFT THE REPORT MARK HADDAD TOM MERRILL AND JACK BIERIG ARE ALL OLD HANDS AT AMA LEGAL WORK WE'VE USED THE BEST SUPREME COURT LAWYERS AROUND TO ESTABLISH CREDIBILITY MR JOHNSON SAYS THE DOCTORS' GROUP WILL NEED MORE THAN CREDIBILITY TO WIN IN COURT OF COURSE CONSTITUTIONALLAW SPECIALISTS SAY MANY OF THE AMA'S ARGUMENTS ARE SHAKY AT BEST LAWYERS SAY COURTS HAVE GIVEN THE GOVERNMENT BROAD POWERS TO REGULATE PRICES AND TO RATION SCARCE RESOURCES I WISH THEM WELL SAYS RICHARD EPSTEIN A UNIVERSITY OF CHICAGO LAW PROFESSOR BUT HE SAYS REFERRING TO OTHER LAWSUITS CHALLENGING PRICE REGULATION SHOW ME ONE OF THESE BEASTS THAT HAS SUCCEEDED I THINK THE ANSWER IS YOU CAN'T FIND ONE STILL THE COMBINATION IN COURT OF A MAJOR INTEREST GROUP AND A LEGAL POWERHOUSE SUCH AS SIDLEY & AUSTIN COULD CAUSE THE ADMINISTRATION CONSIDERABLE HEADACHES THE GOVERNMENT WOULD HAVE TO FIGHT AMA ALLEGATIONS THAT PRICING DECISIONS IN THE PLAN WERE IRRATIONAL AND UNFAIR IN ADDITION EVEN WEAK LAWSUITS CAN INFLUENCE THE BALANCE OF POWER IN THE LEGISLATIVE STRUGGLE PROF EPSTEIN SAYS AT THE VERY LEAST THE AMA HOPES ITS LEGAL STRATEGY WILL GIVE IT MORE CLOUT IN NEGOTIATING WITH THE CLINTON ADMINISTRATION SAYS MR JOHNSON THE GOVERNMENT HE CONTENDS WOULD RATHER NEGOTIATE ON THE FRONTEND THAN HAVE A COURT EVALUATE A PLAN THAT LOOKS ON ITS FACE LIKE IT'S ARBITRARY THE EUROPEAN COMMISSION OF HUMAN RIGHTS RULED THAT FORCING A JOURNALIST TO DIVULGE A SOURCE MAY BE A HUMANRIGHTS VIOLATION THE DECISION A PRELIMINARY RULING IN A CASE INVOLVING A LONDON JOURNALIST COULD RESULT IN STRONGER PROTECTIONS FOR JOURNALISTS THROUGHOUT EUROPE ALTHOUGH THE COMMISSION RULED THAT IT HAS JURISDICTION TO HEAR THE CLAIM IT DIDN'T ADDRESS THE MERITS OF THE CASE THE JOURNALIST WILLIAM GOODWIN OF THE ENGINEER A BRITISH TRADE PUBLICATION WAS FINED 5000 7700 FOR REFUSING TO IDENTIFY THE INDIVIDUAL WHO PROVIDED HIM CONFIDENTIAL FINANCIAL INFORMATION ABOUT TETRA LTD A CLOSELY HELD COMPANY IN THE UNITED KINGDOM MR GOODWIN HAD BEEN TOLD THE COMPANY WAS IN FINANCIAL TROUBLE AND WAS SEEKING A LOAN THE STORY NEVER APPEARED IN PRINT BECAUSE THE COMPANY BLOCKED PUBLICATION IN THE BRITISH COURTS ATTORNEYS SAID THE COMMISSION'S DECISION ESTABLISHES AN IMPORTANT PRINCIPLE FOR JOURNALISTS IN THE COUNTRIES THAT HAVE SIGNED THE EUROPEAN CONVENTION ON HUMAN RIGHTS GEOFFREY ROBERTSON A LAWYER WHO REPRESENTED MR GOODWIN SAID THE RULING AMOUNTS TO THE FIRST TIME INTERNATIONAL HUMANRIGHTS LAW RECOGNIZED THERE IS A JOURNALIST'S RIGHT TO PROTECT A SOURCE IN THE US MANY STATES HAVE SOCALLED SHIELD LAWS THAT PROVIDE SIMILAR PROTECTIONS FOR REPORTERS THE EUROPEAN COMMISSION'S RULING APPARENTLY WOULDN'T APPLY IN CRIMINAL CASES IN ITS DECISION THE COMMISSION DIRECTED THE UK TO REACH A FRIENDLY SETTLEMENT OF THE MATTER WHICH WOULD LIKELY MEAN CHANGING THE COUNTRY'S PRESS LAWS OR FACE A TRIAL ON THE ISSUE BEFORE A COMMISSION PANEL DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL AND THE WALL STREET JOURNALEUROPE FILED A BRIEF IN THE CASE IN SUPPORT OF THE JOURNALIST A SPOKESMAN FOR THE BRITISH FOREIGN OFFICE SAID THE GOVERNMENT WILL DEFEND ITSELF IN DUE COURSE THE COMMISSION HAS NO ENFORCEMENT POWER OTHER THAN TO CONDEMN A COUNTRY FOR VIOLATING THE HUMANRIGHTS ACCORD BUT THAT PRESSURE GENERALLY HAS BEEN SUFFICIENT TO CAUSE GOVERNMENTS TO BACK DOWN FROM THEIR POSITIONS ERIC BARENDT A PROFESSOR OF MEDIA LAW AT UNIVERSITY COLLEGE LONDON HOWEVER SAID IT IS UNLIKELY THE BRITISH GOVERNMENT WILL REACH A FRIENDLY SETTLEMENT AND THAT IT WILL BE MORE DIFFICULT TO WIN A FINAL JUDGMENT AGAINST THE UK THE CASE COULD LAST ANOTHER TWO TO THREE YEARS TWO FORMER MANAGERS OF DEFUNCT FILM RECOVERY INC PLEADED GUILTY TO INVOLUNTARY MANSLAUGHTER IN THE CASE OF AN EMPLOYEE WHO DIED FROM EXPOSURE TO CYANIDE ON THE JOB IN 1985 THE TWO OFFICIALS WERE CONVICTED OF MURDER IN THE DEATH OF THE WORKER BUT THOSE CONVICTIONS WERE OVERTURNED ON APPEAL THE MANSLAUGHTER GUILTY PLEAS COME ON THE EVE OF A RETRIAL IN THE CASE WHICH MARKED THE FIRST PROSECUTION OF CORPORATE OFFICIALS FOR A WORKRELATED EMPLOYEE DEATH THE WORKER STEFAN GOLAB COLLAPSED WHILE WORKING OVER A VAT FILLED WITH CYANIDE SOLUTION AND SOON AFTERWARD DIED FROM CYANIDE POISONING PROSECUTORS ALLEGED THAT FILM RECOVERY OFFICERS FAILED TO PROTECT EMPLOYEES FROM POTENTIALLY LETHAL LEVELS OF CYANIDE VAPORS IN THE VATS WHICH WERE USED TO REMOVE SILVER FROM FILM PLATES ACCORDING TO EVIDENCE AT THE FIRST TRIAL IN 1985 COMPANY OFFICIALS KNEW OF THE DANGERS THE EMPLOYEES FACED BUT DIDN'T PROVIDE ANY SAFETY TRAINING OR WARNINGS THE MANSLAUGHTER PLEAS WERE ENTERED BY STEVEN O'NEIL FORMER PRESIDENT AND PART OWNER OF THE ELK GROVE VILLAGE ILL COMPANY AND FORMER PLANT FOREMAN DANIEL RODRIGUEZ ANOTHER FORMER FILM RECOVERY EXECUTIVE PLANT MANAGER CHARLES KIRSCHBAUM DIDN'T PARTICIPATE IN THE PLEA AGREEMENT HIS RETRIAL ON A MURDER COUNT IS TO BEGIN THIS WEEK IN STATE COURT IN THE CHICAGO SUBURB OF MAYWOOD IN THE 1985 TRIAL THE THREE OFFICIALS WERE FOUND GUILTY OF MURDER AND RECKLESS CONDUCT AND WERE SENTENCED TO 25 YEARS IN PRISON AN ILLINOIS APPEALS COURT IN 1990 HOWEVER OVERTURNED THE CONVICTIONS ON THE BASIS THAT IT WAS LEGALLY INCONSISTENT TO FIND THE OFFICIALS GUILTY BOTH OF THE INTENTIONAL ACT OF MURDER AND OF THE UNINTENTIONAL CRIME OF RECKLESS CONDUCT UNDER THE PLEA AGREEMENT MR O'NEIL WILL SERVE THREE YEARS IN PRISON MR RODRIGUEZ WILL SERVE FOUR MONTHS' OF HOME CONFINEMENT AND 30 MONTHS' OF PROBATION AS WELL AS 500 HOURS OF COMMUNITY SERVICE ILLINOIS PROSECUTORS SAY THEY HAVEN'T YET DECIDED WHETHER TO SEEK AGAIN THE EXTRADITION FROM UTAH OF MICHAEL T MACKAY WHO WAS A PART OWNER OF FILM RECOVERY MR MACKAY HAS NEVER STOOD TRIAL IN THE CASE AND UTAH AUTHORITIES HAVE REPEATEDLY REBUFFED THE REQUESTS THAT HE BE EXTRADITED DANA MILBANK IN LONDON AND JAMES P MILLER IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9309090076 930909 COMMODITIES GOLD FUTURES PRICES STABILIZE EDGING UP 110 BUT REMAIN FRAGILE IN WAKE OF TUESDAY'S PLUNGE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES STABILIZED AFTER TUESDAY'S SHARP DROP BUT THE MARKET REMAINS FRAGILE TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE THE ACTIVE DECEMBER GOLD FUTURES CONTRACT EDGED UP 110 TO 35360 AN OUNCE SILVER HOWEVER WAS WEAKER DECLINING 43 CENTS TO 4257 FOR DECEMBER DELIVERY TRADERS SAID THAT THE GOLD MARKET TURNED POSITIVE ON OVERNIGHT BUYING BY JAPANESE INVESTORS WHO ARE TAKING ADVANTAGE OF THE YEN'S STRENGTH AGAINST THE DOLLAR GOLD IS PRICED IN DOLLARS BUT MARKET EXPERTS SAID THAT POWERFUL NEW YORK COMMODITY FUNDS WILL DETERMINE THE LONGERTERM DIRECTION OF GOLD PRICES COMMODITY FUNDS ARE MANAGED POOLS OF INVESTORS' MONEY THESE FUNDS WHICH WERE CHIEFLY RESPONSIBLE FOR THE RALLY IN GOLD PRICES BETWEEN MIDAPRIL AND EARLY AUGUST HAVE TURNED PREDOMINANTLY NEGATIVE ON THE YELLOW METAL AS INFLATIONARY CONCERNS HAVE EVAPORATED AND AS DEMAND FROM GOLD JEWELERS IN CHINA SOUTHEAST ASIA AND THE MIDDLE EAST HAS ALSO WANED DEALERS SAID SOME TRADERS SAID THAT THE MARKET'S RETREAT TUESDAY WAS OVERDONE AND THAT PERCEPTION FORCED MANY OF THE FUNDS YESTERDAY TO COVER THEIR SHORT POSITIONS OR BETS THAT THE PRICE OF THE UNDERLYING COMMODITY WOULD FALL IT LOOKED LIKE WE HAD AN OVERSOLD POSITION GOING INTO THE SESSION YESTERDAY SAID GERARD POLLINO A SENIOR BULLION TRADER WITH MILLENIUM FUTURES GROUP IN NEW YORK MOST OF THE BUYING WAS THE RESULT OF SHORTCOVERING AND SOME NEW LONG POSITIONS BEING TAKEN THE MILLENIUM TRADER EMPHASIZED HOWEVER THAT THE GOLD FUTURES MARKET WHICH HAS NOW SUFFERED TWO DRAMATIC SETBACKS A 2260 DROP ON AUG 5 AND TUESDAY'S 1460 FALL SEEMS POISED TO TEST LOWER PRICE LEVELS THE MARKET NOW LOOKS LIKE IT PROBABLY WILL TRADE SIDEWAYS HE SAID IF WE DON'T GET BACK UP THROUGH 360 ON THE DECEMBER CONTRACT THEN WE POSSIBLY COULD GO AND TEST A MUCH LOWER LEVEL OF 340 AN OUNCE OTHER ANALYSTS SAID THAT THE GOLD MARKET MAY BE SEARCHING FOR A BOTTOM AT CURRENT LEVELS THERE'S NO QUESTION THAT THE GOLD SHAKEOUT WAS CONSIDERABLY BIGGER THAN MOST PEOPLE EXPECTED SAID SCOTT MEYERS SENIOR ANALYST WITH REDEL TRADING IN NEW YORK BUT I'M NOT READY TO DECLARE THIS A BEAR MARKET MOST OF THE DOWNMOVE IS BEHIND US AND I BELIEVE THAT MARKET WILL TRY TO FIND AN AREA FROM WHICH IT CAN BUILD A BASE MR MEYERS PREDICTED MR MEYERS WHO CHARTS PRICE MOVES ON THE BASIS OF HISTORICAL TRENDS SAID THAT THE KEY SUPPORT LEVEL FOR GOLD IS 350 A LEVEL THAT HE SAID COULD PROVE A NEARTERM EQUILIBRIUM PRICE FOR THE METAL THERE'S SUPPORT AT 350 AND RESISTANCE AT 354 SAID BEN PUGLIESI CHIEF METALS DEALER FOR SWISS BANK CORP IN NEW YORK OTHER ANALYSTS SEE EQUILIBRIUM AT LOWER LEVELS GIVEN THE RECENT PRECIPITOUS DECLINE IN ASIAN DEMAND FOR GOLD TED ARNOLD A LONDONBASED SENIOR METALS ANALYST FOR MERRILL LYNCH POINTED TO EQUILIBRIUM LEVELS IN THE 330TO340 RANGE IN A RECENT INTERVIEW IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK & GRAINS PRICES OF HOG FUTURES CONTRACTS ROSE IN THE WAKE OF REPORTS THAT RUSSIA IS BEGINNING TO USE A US FOOD AID PACKAGE TO ACQUIRE DONATED PORK ACCORDING TO TRADERS MOSCOW HAS ALREADY ACQUIRED ABOUT 19 MILLION OF SPLIT HOG CARCASSES AND IS EXPECTED TO ACQUIRE ADDITIONAL PORK VALUED AT 49 MILLION IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE HOG CONTRACT FOR OCTOBER DELIVERY ROSE 090 CENT A POUND TO SETTLE AT 4877 CENTS A POUND PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SETTLED MIXED AS TRADERS TOOK TO THE SIDELINES IN ANTICIPATION OF A MONTHLY GOVERNMENT HARVEST FORECAST SLATED FOR RELEASE TODAY IN AUGUST THE AGRICULTURE DEPARTMENT PREDICTED THAT US FARMERS WILL HARVEST 742 BILLION BUSHELS OF CORN AND 190 BILLION BUSHELS OF SOYBEANS ENERGY LIGHT SWEET CRUDE OIL FUTURES PRICES ENDED LOWER WHILE PRODUCT PRICES SETTLED MIXED IN ACTIVE TRADING YESTERDAY IN THE ABSENCE OF MAJOR FUNDAMENTAL NEWS TRADERS HAD EXPECTED CONTRACTS TO RECOVER SOMEWHAT FROM TUESDAY'S SHARP LOSSES HOWEVER THE PRICE RANGE REMAINED RELATIVELY UNCHANGED INDEED PRICE RECOVERY COULD DEPEND ON WHETHER OIL MINISTERS AT THE NEXT MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SUCCEED IN CURBING OVERPRODUCTION BY MEMBER STATES AND STATISTICS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE LATE YESTERDAY MIGHT NOT DO MUCH TO PROP UP PRICES EITHER THE FIGURES SHOW AN INCREASE IN GASOLINE AND HEATING OIL INVENTORIES LAST WEEK CRUDE OIL STOCKS DECLINED BUT LEVELS STILL REMAIN SHARPLY HIGHER THAN LEVELS LAST YEAR DURING THE SAME PERIOD 9309090075 930909 TRAVELERS SELLS PORTFOLIO TO FUND FOR 634 MILLION BY MITCHELL PACELLE AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL TRAVELERS CORP HAS SOLD A PORTFOLIO OF DISTRESSED REAL ESTATE TO AN INVESTMENT FUND SET UP BY FINANCIER GEORGE SOROS FOR 634 MILLION IN CASH ONE OF THE LARGESTEVER BULK SALES OF REALESTATE ASSETS THE PURCHASE IS THE FIRST FOR NEW YORKBASED QUANTUM REALTY FUND WHICH MR SOROS SET UP IN MARCH TO INVEST IN TROUBLED REAL ESTATE BUT THE INFLUENTIAL INVESTOR SAID HE IS CONSIDERING CONVERTING THE ASSETS INTO A REAL ESTATE INVESTMENT TRUST TO BE SOLD TO THE PUBLIC A MOVE WHICH COULD INCREASE THE VALUE OF THE PURCHASE THE ACQUISITION ALSO REPRESENTS A RETURN TO MAJORLEAGUE DEALMAKING FOR PAUL REICHMANN A ONETIME CONTROLLING SHAREHOLDER OF THE COLLAPSED OLYMPIA & YORK DEVELOPMENTS LTD PROPERTY EMPIRE WHO WAS BROUGHT IN BY MR SOROS TO ACT AS THE FUND'S ADVISER REICHMANN INTERNATIONAL MR REICHMANN'S NEW FIRM SPEARHEADED THE NEGOTIATIONS THE PORTFOLIO CONSISTS OF 35 OFFICE APARTMENT HOTEL AND RETAIL PROPERTIES PLUS A DOZEN COMMERCIAL MORTGAGES WHICH CARRIED AN ORIGINAL BOOK VALUE OF 805 MILLION ACCORDING TO TRAVELERS TRAVELERS WILL TAKE A 20 MILLION CHARGE ON THE SALE IN THE THIRD QUARTER QUANTUM REALTY GEORGE SOROS AND VARIOUS SOROS FAMILY ENTITIES PUT UP ABOUT 300 MILLION IN CASH TO CLOSE THE DEAL THE BALANCE WAS RAISED IN THE FORM OF A BRIDGE LOAN ARRANGED BY KIDDER PEABODY & CO WHICH ACTED AS ADVISER TO TRAVELERS AS A PRELUDE TO A SECURITIZATION IN A STATEMENT MR SOROS INDICATED THAT SOME OR ALL OF THE PORTFOLIO OR POSSIBLY THE ENTIRE QUANTUM REALTY FUND MIGHT EVENTUALLY BE CONVERTED INTO A REAL ESTATE INVESTMENT TRUST WITH SHARES BEING SOLD TO US INVESTORS IN AN INITIAL PUBLIC OFFERING CURRENTLY ALL OF QUANTUM'S FUNDS ARE CLOSED TO US INVESTORS SOROS OFFICIALS DECLINED TO ELABORATE ON THE ANNOUNCEMENT EVERYONE THAT'S ANALYZING THESE LARGESCALE TRANSACTIONS ARE ANALYZING THEM WITH AN EYE TOWARD TAKING THEM PUBLIC SAID STEPHEN ROTH A PRINCIPAL IN LOS ANGELESBASED SECURED CAPITAL CORP WHICH HAS ADVISED BANKS INSURANCE COMPANIES AND RESOLUTION TRUST CORP ON BULK REALESTATE SALES THE PRICES THAT ARE BEING PAID BY THE PUBLIC MARKETS FOR COMMERCIAL REAL ESTATE ARE SIGNFICANTLY HIGHER THAN THOSE BEING PAID BY INDIVIDUAL BUYERS OR PORTFOLIO BUYERS MR SOROS EXPECTS TO BEGIN CONSULTING WALL STREET UNDERWRITERS ABOUT SUCH AN OFFERING PARTLY TO TAKE ADVANTAGE OF THIS ARBITRAGE AS WELL AS TO GIVE THE FUND LIQUIDITY TO PURSUE OTHER DEALS ACCORDING TO A SOURCE FAMILIAR WITH THE TRANSACTION 9309090074 930909 AMTECH'S STOCK FALLS AS ANALYST CUTS BACK ESTIMATES FOR 1994 DALLAS AMTECH CORP'S STOCK SLID 12 AFTER A KEY ANALYST SHARPLY LOWERED HIS 1994 REVENUE AND EARNINGS ESTIMATES BASED ON GUIDANCE FROM THE COMPANY MARK ROBERTS OF ALEX BROWN & SONS IN BALTIMORE WHICH UNDERWROTE AMTECH'S 25 MILLION STOCK OFFERING LAST YEAR SAID HE REDUCED HIS 1994 EARNINGS ESTIMATE TO 85 CENTS A SHARE FROM 110 A SHARE AND HIS REVENUE ESTIMATE TO 67 MILLION FROM 86 MILLION HE SAID HE MADE THE CHANGES AFTER CONSULTING WITH OFFICIALS OF THE COMPANY WHICH MAKES AUTOMATIC VEHICLE AND EQUIPMENT IDENTIFICATION SYSTEMS THE COMPANY IS GIVING US MORE CONSERVATIVE GUIDANCE ON REVENUE EXPECTATIONS FOR 1994 MR ROBERTS SAID THE COMPANY IS EXPECTING LOWER REVENUE IN 1994 THAN I HAD BUT STEVE YORK AMTECH'S CHIEF FINANCIAL OFFICER SAID THE COMPANY ONLY INDICATED WHEN ASKED BY MR ROBERTS'S FIRM THAT THE ESTIMATES APPEARED TO BE AGGRESSIVE AND OUT OF LINE WITH THE CONSENSUS OF 75 CENTS TO 80 CENTS A SHARE IN EARNINGS AND 60 MILLION TO 65 MILLION IN REVENUES STILL MR ROBERTS'S LOWERED EXPECTATIONS HELPED DRIVE AMTECH'S SHARE PRICE DOWN 3625 TO 2550 A SHARE IN NATIONAL OVERTHECOUNTER TRADING AMTECH'S STOCK HAS BEEN SUBJECT TO WIDE SWINGS IN RECENT WEEKS BECAUSSE OF NEWS AND RUMORS ABOUT POTENTIAL CONTRACTS MR ROBERTS SAID HE HAD PREVIOUSLY EXPECTED THE COMPANY WOULD BEGIN REALIZING REVENUE IN THE 1994 THIRD OR FOURTH QUARTER FROM THE EUROPEAN RAIL SYSTEM'S ADOPTION OF AMTECH'S TECHNOLOGY AS A STANDARD FOR AUTOMATIC RAIL CAR IDENTIFICATION BUT THE ANALYST SAID HE NOW BELIEVES THAT REVENUE WON'T BEGIN UNTIL 1995 HE ADDED THAT THE POTENTIAL BENEFIT TO AMTECH'S 1994 REVENUE FROM THE EZPASS ELECTRONIC TOLL COLLECTION SYSTEM PROJECT IN THE NORTHEAST WOULD BE LOWER THAN HE EXPECTED AMTECH IS COMPETING FOR THE CONTRACT AGAINST A JOINT VENTURE INVOLVING AMERICAN TELEPHONE & TELEGRAPH CO AND MARK IV INDUSTRIES INC A DECISION ISN'T EXPECTED UNTIL AFTER OCTOBER 9309090073 930909 CORRECTIONS & AMPLIFICATIONS BAXTER INTERNATIONAL INC PLANS TO FREEZE THE HIRING OF SALARIED EMPLOYEES IN THE US AND PUERTO RICO AN ARTICLE YESTERDAY REPORTED INCORRECTLY THAT THE FREEZE IS ON SALARIES OF EMPLOYEES THE WHITE HOUSE ESTIMATE THAT IT CAN SAVE 404 BILLION OVER FIVE YEARS BY ELIMINATING 252000 FEDERAL JOBS INCLUDES THE SAVINGS FROM ELIMINATING THE 100000 JOBS THAT PRESIDENT CLINTON PREVIOUSLY PROMISED TO ELIMINATE AN ARTICLE YESTERDAY SAID THE SAVINGS DIDN'T INCLUDE THOSE CUTS WPP GROUP'S J WALTER THOMPSON UNIT NAMED EXECUTIVE VICE PRESIDENT CHRIS JONES TO THE ADDITIONAL POST OF MANAGING DIRECTOR FOR SEVERAL BIG EUROPEAN ACCOUNTS AN ITEM IN YESTERDAY'S ADVERTISING COLUMN HAD INCORRECTLY IDENTIFIED HIM AS CHRIS THOMPSON 9309090072 930909 BUSINESS BRIEF MEGAFOODS STORES INC SUPPLIER PACT WITH FLEMING MAY BE ENDED IN DECEMBER MEGAFOODS STORES INC SAID IT HAS NOTIFIED FLEMING COS ITS BIGGEST FOOD SUPPLIER THAT IT MAY CANCEL THE COMPANY'S SUPPLY AGREEMENT LATER THIS YEAR MEGAFOODS A 24STORE GROCERY CHAIN IN MESA ARIZ SAID ITS AGREEMENT WITH FLEMING WILL END IN MIDDECEMBER UNLESS THE COMPANY MATCHES THE PRICES OF SAFEWAY INC A PROPOSED NEW SUPPLIER MEGAFOODS THIS YEAR IS EXPECTED TO BUY ABOUT 175 MILLION FROM FLEMING IN OKLAHOMA CITY OKLA THIS YEAR A FLEMING SPOKESMAN NOTED THAT THE MEGAFOODS BUSINESS ACCOUNTS FOR ONLY ABOUT 1 OF THE COMPANY'S SALES WHICH TOTALED 129 BILLION IN 1992 THE SPOKESMAN HOWEVER SAID THE COMPANY PLANS TO COUNTER THE SAFEWAY SUPPLY DEAL FURTHER DETAILS WEREN'T DISCLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FLEMING STOCK CLOSED AT 33125 A SHARE DOWN 25 CENTS 9309090071 930909 NEWCOLLAR' WORK TELEPHONE SALES REPS DO UNREWARDING JOBS THAT FEW CAN ABIDE BEV DEMILLE SELLS MAGAZINES STICKING TO HER SCRIPTS WITH BOSSES LISTENING IN MILLIONS ARE IN THE SAME BOAT BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL OMAHA NEB BEV DEMILLE IS HAVING A BAD NIGHT THE 51YEAROLD TELEMARKETER IS ON HER 14TH PHONE CALL OF THE SHIFT BUT SO FAR SHE HAS SOLD JUST ONE MAGAZINE RENEWAL COME ON COMPUTER MOVE IT SHE SAYS WAITING FOR THE NEXT BEEP IN HER HEADSET AND THE NEXT NAME TO FLASH ON HER SCREEN AROUND HER COWORKERS TETHERED TO THEIR DESKS BY TELEPHONE CORDS GESTURE AS THEY SPEAK AND SIGNAL SUPERVISORS TO LISTEN TO THE CONFIRMATION OF A SALE A YOUNG SUPERVISOR HALF MS DEMILLE'S AGE REPRIMANDS HER YOU'RE LOW GIRL ONE IN 14 MS DEMILLE GLARES AT HER VIDEO SCREEN I DON'T KNOW WHERE HE GETS OFF SAYING THAT SHE SAYS BUT MS DEMILLE KNOWS THAT THE PRESSURE GOES WITH THE JOB WORKING FOR NINE OTHER EMPLOYERS IN HER 10 YEARS IN TELEMARKETING SHE HAS SEEN COWORKERS TAKE TRANQUILIZERS TO RELIEVE STRESS SHE HAS SEEN PEOPLE FIRED FOR MISSING SALES TARGETS WHEN CONFRONTED ONCE ON A PREVIOUS JOB FOR LEAVING HER DESK TO GO TO THE LADIES' ROOM WITHOUT PERMISSION SHE RETORTED MY BLADDER COULDN'T SEE YOU SAYS MS DEMILLE YOU DON'T GET ANY CREDIT YOU FEEL LIKE SO MANY POUNDS OF BEEF SHUTTLING THROUGH THE CHUTE THAT STRAIN IS FELT BY MANY OF THE NATION'S ESTIMATED THREE MILLION TO FOUR MILLION TELEPHONE SALES REPRESENTATIVES 70 OF WHOM ACCORDING TO TELEMARKETING MAGAZINE ARE WOMEN ONE WORKER IS LIKELY TO TALK WITH HUNDREDS OF INDIFFERENT OR OUTRIGHT HOSTILE CUSTOMERS DAILY WHILE BEING MONITORED BY SUPERVISORS WHO INSIST THAT SALES REPS REMAIN CHEERFUL AND STICK TO THEIR SCRIPTED PATTERS UNDER THE CIRCUMSTANCES WORKERS BURN OUT QUICKLY AND FEEL UNAPPRECIATED MANAGEMENT POWERLESS TO RELIEVE THE MONOTONY MUST COPE WITH DISLOYALTY AND HIGH TURNOVER TOUGH WORK BUT THIS SORT OF JOB IS AMONG THE LARGEST SEGMENTS OF THE AMERICAN WORK FORCE RALPH WHITEHEAD A PROFESSOR AT THE UNIVERSITY OF MASSACHUSETTS AT AMHERST WHO WRITES ABOUT WORKPLACE TRENDS CALLS THEM THE NEWCOLLAR WORKERS HE SAYS THEY NOW MAKE UP NEARLY 40 OF WORKERS BORN AFTER 1945 SOME ARE SALESPEOPLE OR DATA PROCESSORS SOME WORK IN FINANCE OR GOVERNMENT WHAT THEY HAVE IN COMMON IS COMPUTERS OR TELEPHONES THEY DO BLUECOLLAR JOBS IN A WHITECOLLAR WORLD THE NEWCOLLAR WORKERS SPEND THEIR DAYS NOT IN FACTORIES BUT IN AIRCONDITIONED OFFICES BUT UNLIKE PROFESSIONALS AND EXECUTIVES WHO ENJOY SOME VARIETY IN THEIR WORK THEY ARE STUCK DOING LIMITED AND REPETITIVE TASKS THEY HAVE LITTLE TIME FOR CAMARADERIE AND NEXT TO NO CHANCE FOR ADVANCEMENT THERE'S A TREMENDOUS AMOUNT OF STRESS WORK PRESSURE AND PERFORMANCE PRESSURE SAYS MICHAEL SMITH A PROFESSOR OF INDUSTRIAL ENGINEERING AT THE UNIVERSITY OF WISCONSIN AT MADISON THEY'RE TURNOFTHECENTURY FACTORY WORKERS BUT THEY'RE EDUCATED AND THEY HAVE TECHNOLOGY AS IT HAPPENS TENS OF THOUSANDS OF TELEMARKETERS DO THEIR THING IN OMAHA THE INDUSTRY'S HUB RESTLESS IN THEIR CAREERS TELEMARKETERS HERE AS ELSEWHERE FEEL CAPABLE OF MORE THAN THEIR WORK ALLOWS THEM TO DO AND THAT INEVITABLY CREATES TENSION BETWEEN THE DESIRE FOR SOMETHING BETTER AND THE STRONG SUSPICION THAT THEY WILL NEVER GET IT NEXT TO THE GOODYEAR DEALERSHIP ON OMAHA'S WEST SIDE THE SMALL BRICK OFFICE THAT HOUSES A BRANCH OF DIALAMERICA MARKETING INC OF MAHWAH NJ GIVES LITTLE HINT OF THE FRENZY INSIDE WHERE 325 TELEMARKETERS WORK IN THREE SHIFTS FROM 8 AM TO NOON NOON TO 4 AND 5 TO 930 PM THE EVENING SHIFT THE COMPANY'S BUSIEST IS ABOUT TO BEGIN AS THE SALES REPS ARRIVE SUPERVISORS PLACE MAGNETIC NAME TAGS TO DIRECT WORKERS TO THEIR ASSIGNED CUBICLES LET'S DO IT A SUPERVISOR SAYS AS THE CLOCK STRIKES 500 AND THE AUTOMATIC DIALING MACHINE BEGINS PLACING CALLS SUPERVISORS ONE FOR EVERY EIGHT REPS PACE ABOUT EAVESDROPPING ON CALLS WITH CORDLESS PHONES LOGGING SALES ON A BIG BLACKBOARD AND COACHING TONI IS A GOAL BUSTER YIPPIE NICE HOUR ELMON COME ON ATEAM BECAUSE DIALAMERICA BILLS CLIENTS BY THE SALE NOT BY THE HOUR IT LOOKS FOR WAYS TO BOOST PRODUCTIVITY MANAGERS SPLIT THE ROOM INTO TEAMS THE KILLER B'S THE DREAM TEAM THE TERMINATORS EACH REP HAS A BELL TO RING FOR EACH SALE A SIGN FOR THE SUPERVISOR TO LISTEN TO THE CONFIRMATION AND RECORD THE SALE ON THE BOARD AS THE SHIFT DRAGS ON THE ROOM HEATS UP FROM ALL THE BODIES HERE ABOUT 50 OF THEM SOME STANDING AS THEY SPEAK INTO THEIR HEADSETS IT SOUNDS LIKE A COCKTAIL PARTY BUT WITHOUT THE LAUGHTER AND CLINKING OF GLASSES ON EACH SCREEN AN ELECTRONIC MESSAGE REMINDS WORKERS OUR FIRST JOBHAPPY CUSTOMERS EACH REP WILL MAKE AT LEAST 100 CALLS IN A TYPICAL SHIFT PITCHING MAGAZINE SUBSCRIPTION RENEWALS OR TRYING TO GET LAPSED SUBSCRIBERS TO REUP THE COMPANY DOES THIS WORK FOR A NUMBER OF WELLKNOWN PUBLICATIONS IN A TYPICAL SHIFT A REP WILL SPEAK TO THE PERSON HE OR SHE IS TRYING TO REACH ABOUT HALF THE TIME AND WILL CONVERT ABOUT 15 OF THOSE WHO HEAR THE PRESENTATION REPS WHO EARN COMMISSIONS BASED ON THE NUMBER OF SALES AND ON THE PRESUMED DIFFICULTY OF SELLING A PARTICULAR MAGAZINE HAVE NO SAY IN WHAT THEY ARE PITCHING AND TO WHOM THE AUTOMATED DIALING SYSTEM INSTALLED LAST YEAR TAKES CARE OF ALL THAT REPS CHEER FOR HOT TITLES AND GOOD CODES THEY GROAN WHEN THE CODE IS FOR DEAD EXPIRES PEOPLE WHOSE SUBSCRIPTIONS LAPSED LONG AGO OR FOR OLD LEADS NAMES THAT HAVE BEEN PICKED OVER CALLED BEFORE OR DIDN'T ANSWER LAST TIME THEY ALSO CLAIM TO HAVE MORE LUCK WITH LISTS OF WESTERNERS THAN WITH EASTERNERS PARTICULARLY NEW YORKERS FOR THE FIRST HOUR OF THE SHIFT MYAN JENCKS IS LUCKY ONE OF HER FIRST CALLS IS TO A MRS ZWIFELHOFER REACHED ON HER GARDEN TELEPHONE IN WISCONSIN I'VE BEEN ASKED TO CALL YOU PERSONALLY AND OFFER YOU THE ABSOLUTE LOWEST RENEWAL RATE MS JENCKS BEGINS RECITING THE MEMORIZED SCRIPT WHEN MRS ZWIFELHOFER SAYS NO MS JENCKS TRIES ANOTHER TACK THAT BEGINS I CAN CERTAINLY APPRECIATE HOW YOU FEEL BUT MRS ZWIFELHOFER IS COMING AROUND YOU DRIVE A HARD BARGAIN SHE SAYS A LITTLE MORE CAJOLING AND MS JENCKS DRAWS A RELUCTANT ALRIGHTY OUT OF MRS ZWIFELHOFER YOU PUT THE HOOK OUT AND REEL EM IN SAYS MS JENCKS CASTING AN INVISIBLE LINE SHE HAS LOGGED EIGHT SALES IN THE FIRST 35 MINUTES TWICE ANYBODY ELSE'S COUNT BUT JUST THEN THE SUPERVISOR ANNOUNCES THAT A DIFFERENT MAGAZINE IS TO BE PITCHED BY EVERYBODY IN HER GROUP AND MS JENCKS'S LUCK CHANGES THE NAMES OF THE MAGAZINES CAN'T BE MENTIONED HERE A CONDITION DIALAMERICA INSISTED ON IN PROVIDING THE WALL STREET JOURNAL THE RUN OF ITS SALES FLOOR AN IRATE WOMAN IN IOWA DEMANDS TO BE TAKEN OFF THE CALLING LIST WHICH DIALAMERICA AND OTHER TELEMARKETERS ARE OBLIGED TO DO MS JENCKS WAKES UP ONE PROSPECTIVE CUSTOMER REACHES ANOTHER WHO DOESN'T SPEAK ENGLISH AND A THIRD WHO CAN NO LONGER SEE WELL ENOUGH TO READ MAGAZINES I'VE HAD SO MANY BILLS AND MY CAR WENT BAD AND WHEN YOU'RE ON SOCIAL SECURITY IT JUST DON'T REACH ANOTHER EXPLAINS OTHERS DON'T BOTHER WITH EXPLANATIONS I DON'T WANT IT ANYMORE CLICK I'M NOT INTERESTED CLICK ONE THING THAT KEEPS SALES REPS ON THEIR TOES IS THE KNOWLEDGE THAT SUPERVISORS COMPANY EXECUTIVES OR CLIENTS SOME OF WHOM SEED THEIR LISTS TO TEST DIALAMERICA'S METTLE MAY WELL BE LISTENING IN IN A CONFERENCE ROOM OVERLOOKING THE SELLING AREA SUPERVISOR ALAN DRAIN USES A SPEAKERPHONE TO REVIEW ONE OF HIS NEW REPS KATHY BOELTER HE FEELS MS BOELTER'S PRESENTATION IS TOO QUICK AND EAGER WHEN SHE MAKES A SALE SHE SOUNDS SURPRISED MR DRAIN CALLS HER IN YOU'RE WORKING TOO HARD YOU'VE GOT TO SLOW DOWN HE TELLS HER MS BOELTER SAYS SHE KNOWS HOW IT'S SUPPOSED TO GO I HAVE A BA IN BROADCASTING SHE SAYS KATHY WILL MAKE IT MR DRAIN CONFIDES AFTER SHE LEAVES THE ROOM HE PUNCHES IN ANOTHER NUMBER ON THE PHONE AND PRODUCES THE HALTING TIMID VOICE OF ANOTHER NEW REP SHE STUTTERS AND SURRENDERS QUICKLY SHE'S NOT LONG FOR TELEMARKETING MR DRAIN SAYS A CHART ON THE WALL PROVIDES A CONSTANT MEASURE OF PERFORMANCE IT LISTS EVERYBODY'S GUARANTEED PAY FOR THE PREVIOUS WEEK CURRENTLY 750 PER HOUR AND THEIR ACTUAL PAY FROM COMMISSIONS THE BEST ANYBODY IS DOING IS TO MAKE 13 AN HOUR THOSE WHOSE WORK DOESN'T JUSTIFY THE GUARANTEE ARE ON WAGE MAKEUP THE COMPANY'S WAY OF SAYING THAT THEY AREN'T PULLING THEIR WEIGHT TOO MANY WEEKS OF THAT AND THEY ARE OUT OF A JOB PRIVATELY HELD DIALAMERICA IS REGARDED BY WORKERS INTERVIEWED FOR THIS STORY AS ONE OF THE BEST IN THE INDUSTRY ITS SUPERVISORS ARE SAID TO BE MORE LAIDBACK THERE IS NO SCREAMING AT SALES REPS PEOPLE ARE RARELY SENT HOME IN THE MIDDLE OF A SHIFT THEY DON'T HAVE TO ASK PERMISSION TO GO TO THE BATHROOM THEY CAN PRETTY MUCH SET THEIR OWN WORKING HOURS AND THE COMPANY HAS GOOD CLIENTS MAGAZINES THAT ARE FAIRLY EASY TO SELL SITEL CORP BY CONTRAST HAS FACTORYSTYLE TIME CLOCKS EMPLOYEES MUST ASK FOR BATHROOM BREAKS AND CAN'T BRING FOOD OR DRINK INTO THEIR CUBICLES EVERYTHING IS A SCHEDULED EVENT SAYS JIM LYNCH SITEL'S CHIEF EXECUTIVE SITEL THE SECONDLARGEST TELEMARKETER IN OMAHA THAT DOES OUTBOUND CALLING AS OPPOSED TO TAKING ORDERS FROM PEOPLE WHO PHONE IN WOULDN'T ALLOW ITS WORKERS TO BE INTERVIEWED THEY MIGHT PROVIDE MISINFORMATION ITI MARKETING SERVICES INC THE CITY'S LARGEST ALSO WOULDN'T SOME TELEMARKETERS TRY TO HARNESS THE TENSION COMPETING WITH COWORKERS TO LOG THE MOST SALES AND MAKING NICKEL BETS BUT THE RIVALRY SOMETIMES JUST MAKES MATTERS WORSE PAUL CHATTERTON A TRANSPLANTED EASTERNER WAS ONE OF THE BEST SALESMEN AT A SMALL TELEMARKETING FIRM OUTSIDE OF TOWN HIS GOAL EACH NIGHT WAS TO OUTSELL THE OTHERS IN HIS GROUP HE WOULD REWARD HIMSELF WITH STEAK AND ICE CREAM IF HE SUCCEEDED BUT THE STRESS PROVED TOO MUCH PARTICULARLY BECAUSE HIS COMPANY DIDN'T PAY HIM BONUSES FOR THE EXTRA EFFORT ONE NIGHT 18 MONTHS AGO FALLING SHORT OF HIS GOAL MR CHATTERTON THREW HIS EQUIPMENT DOWN AND RAN TO THE BATHROOM TO CRY WHEN WE WORK UNDER STRESS WE CRACK AND WE HAVE TO GET AWAY HE EXPLAINS HE IS BEING TREATED FOR DEPRESSION AGGRAVATING THE TENSION IS THE TELEMARKETERS' FEELING THAT THEY CAN'T FIGHT BACK BEFORE IF SOMEONE BOTHERED ME I'D GET IN HIS FACE HERE YOU'VE GOT TO BITE YOUR TONGUE AND BE QUIET SAYS STEVE MEVERT OF DIALAMERICA WHO BECAME A TELEMARKETER AFTER LOSING HIS OWN BUSINESS DURING A DIVORCE WHEN ONE RECENT CUSTOMER CALLED MR MEVERT AN SOB HE CLENCHED HIS TEETH AND REPLIED THANK YOU VERY MUCH YOU HAVE A NICE DAY THREE WEEKS INTO HER JOB WITH INTELLISEL CORP WHOSE HEADQUARTERS ARE ALSO IN OMAHA ANNETTE PETERSON BROKE DOWN IN THE MIDDLE OF A CALL AND BEGAN SOBBING AN ARKANSAS MAN HAD CALLED HER A STRING OF EPITHETS BEFORE THAT A WOMAN ADVISED HER WHY DON'T YOU GET A REAL JOB AND A REAL LIFE OTHERS JUST HUNG UP THE SUPERVISOR TOOK MS PETERSON ASIDE AND REMINDED HER OF THE FIRST LESSON OF TELEMARKETING DON'T TAKE THE REJECTION PERSONALLY BUT SHE DOES ANYWAY SOME PEOPLE TALK TO YOU AS IF YOU'RE SCUM SHE SAYS THAT'S WHY MOST PEOPLE QUIT TURNOVER IS ALMOST INEVITABLE AT MS PETERSON'S CALLING CENTER IN STANTON IOWA ABOUT AN HOUR FROM HERE MORE THAN 30 WORKERS OF A TOTAL FORCE OF 42 QUIT IN THE FIRST 3 1/2 MONTHS OF THE COMPANY'S OPERATIONS THERE AT DIALAMERICA'S OMAHA FACILITY THE AVERAGE STAY IS 11 WEEKS THE COMPANY SAYS AND MORE THAN THREE MONTHS IS CONSIDERED LONGTERM EMPLOYMENT A POLL AT ANOTHER TELEMARKETING FIRM WHICH ASKED NOT TO BE IDENTIFIED FOUND THAT 88 OF WORKERS HAD HELD THEIR JOBS FOR A YEAR OR LESS ITI SAYS THAT FOR THOSE WHO MAKE IT THROUGH TRAINING AND THAT IS BY NO MEANS EVERYBODY ANNUAL TURNOVER IS 100 IT'S DIFFICULT TO HAVE THEM CONVINCED THEY SHOULD WORK IN A TASKORIENTED ENVIRONMENT FOR ANY LENGTH OF TIME LET ALONE FOR THE REST OF THEIR LIVES SAYS SITEL'S MR LYNCH AT SITEL 47 TELEPHONE REPS APPLIED FOR A RECENT SUPERVISOR'S POSITION WHEN THE COMPANY POSTED THE OPENING OF COURSE TELEMARKETING WORK HAS ITS ATTRACTIONS FOR SOME PEOPLE STUDENTS RETIREES HOMEMAKERS AND OTHERS WHO AREN'T SUITED FOR OR INCLINED TO DO BLUECOLLAR JOBS AND DON'T WANT THE RESPONSIBILITY OF A PROFESSIONAL JOB OTHERS SEE THIS WORK AS SOMETHING TO DO WHEN THEY ARE BETWEEN JOBS AND LOOKING FOR OTHER EMPLOYMENT IT IS A PLUS THAT TELEMARKETERS OFTEN CAN SET THEIR OWN HOURS AND FLEXIBLE SHIFTS AT DIALAMERICA REPS CAN WORK AS FEW AS 15 HOURS A WEEK THEY CAN CHOOSE A MORNING OR EVENING SHIFT WORKING ONE DAY OF THE WEEKEND AND TWO WEEKDAYS THAT IS GOOD FOR CONNIE DURKAN A DIALAMERICA REP WHO WORKS TO RAISE MONEY FOR VISITS TO HER GRANDCHILDREN IN ARIZONA I REACHED A POINT IN LIFE WHERE I DIDN'T NEED A CAREER SAYS MRS DURKAN WHO COMES TO WORK IN JEANS AND TENNIS SHOES IT ISN'T SO EASY FOR THOSE WHO WORK THREE SHIFTS AND ARE ACTUALLY TRYING TO MAKE A LIVING AT THIS TO MAKE ENDS MEET TELEMARKETER SCOTT GOULD WHO HAS A WIFE AND THREE CHILDREN SAYS HE ALSO VOLUNTEERS AS A MEDICAL GUINEA PIG ON WEEKENDS EARNING EXTRA CASH 325 IN TWO DAYS FOR BEING A SUBJECT IN MEDICAL EXPERIMENTS MS JENCKS A 33YEAROLD DIVORCED MOTHER OF TWO WORKS A DOUBLE SHIFT SHE HAS TRIED WORKING THREE CONSECUTIVE SHIFTS BUT BY THE END OF THE DAY SHE SAYS MY WORDS JUST WEREN'T COMING OUT SHE HAS NO MEDICAL INSURANCE THESE JOBS SELDOM PROVIDE HEALTH BENEFITS EXCEPT TO SUPERVISORS SHE SEES HER CHILDREN ON WEEKENDS IS IN DEBT AND DRIVES A BROKENDOWN 1977 CHEVROLET MALIBU IT'S LIKE I'M STUCK SHE SAYS SALES REPS IF THEY WORK TWO OR THREE SHIFTS CAN EARN 15000 TO 20000 A YEAR FROM TELEMARKETING SITEL'S MR LYNCH ACKNOWLEDGES THAT MANY EMPLOYEES DON'T FEEL LOYALTY BECAUSE THE COMPANY DOESN'T GIVE ANYTHING BACK TO THEM THEY HAVE A HIGH LEVEL OF EXPECTATION OF WHAT A COMPANY SHOULD PROVIDE FOR THEM THERE'S NOTHING IN OUR POWER WE CAN DO TO FULFILL THOSE EXPECTATIONS AND THEREIN LIES THE PROBLEM DIALAMERICA TRIES TO BE INDULGENT IT FORGIVES EVEN WEEKLONG DISAPPEARANCES AND PEOPLE WHO HAVE QUIT ARE WELCOME TO RETURN ANYTIME WHEN CARA HARKENDORFF A YOUNG SUPERVISOR HAD HER WAGES GARNISHED BY CREDITORS AFTER HER CAR WAS REPOSSESSED SHE SAYS DAVID HALLER THE BRANCH MANAGER LENT HER 89 THE COMPANY ATTEMPTS TO TAP ITS WORKERS' SKILLS WITH ROUNDTABLE MEETINGS AT WHICH IT SOLICITS IDEAS FOR SCRIPTS BUT GIVEN THE ESSENTIAL TEDIUM OF THE WORK THERE'S NOT A LOT WE CAN DO SAYS MR HALLER BEV DEMILLE AGREES THIS JOB IS NOBODY'S FIRST CHOICEIT BECOMES A WAY OF LIFE WHEN YOU CAN'T DO ANYTHING ELSE BUT LIKE MANY OTHER NEWCOLLAR WORKERS MS DEMILLE SEES NO GOOD ALTERNATIVE WHO'S GOING TO HIRE SOMEONE 51 YEARS OLD WITH A BUM BACK SHE ASKS IT'S ALL I'VE GOT LEFT TO DO I'M GOING TO RETIRE IN ANOTHER 14 YEARS IF I CAN JUST HANG ON THAT LONG 9309090070 930909 SMALL STOCK FOCUS TELECOMMUNICATION HEALTH ISSUES FALL PULLING DOWN PRICES ACROSS THE BOARD BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL STOCKS TUMBLED DRAGGED DOWN BY SELLING IN TELECOMMUNICATIONS AND MEDICALRELATED STOCKS THE RUSSELL 2000 INDEX A MEASURE OF THE SMALLEST ISSUES ON THE NASDAQ MARKET AND NEW YORK AND AMERICAN STOCK EXCHANGES FELL 312 OR 127 TO 243 IT'S ABOUT TIME THE MARKET CAME DOWN SOME SAID LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO IN NASHVILLE TENN INVESTORS TOOK PROFITS IN TELECOMMUNICATIONS STOCKS BUT THE SELLING WAS PRETTY MUCH ACROSS THE BOARD SEVERAL SMALL WIRELESSCOMMUNICATIONS STOCKS WHICH POSTED BIG GAINS IN THE PAST MONTH TOOK A HIT SHARES OF COMPANIES THAT PROVIDE SPECIALIZED MOBILE RADIO OR SMR SERVICES FELL SHARPLY CENCALL COMMUNICATIONS SLUMPED 2 3/8 TO 27 1/2 DIAL PAGE TUMBLED 3 TO 34 3/4 GEOTEK INDUSTRIES FELL 11/16 TO 8 1/2 AND PITTENCRIEFF COMMUNICATIONS DROPPED 1 1/4 TO 19 1/4 GLENAYRE TECHNOLOGIES TOPPLED 6 1/4 TO 68 1/2 BASED IN CHARLOTTE NC GLENAYRE SUPPLIES TELECOMMUNICATIONS EQUIPMENT AND RELATED SOFTWARE SUCH AS TRANSMITTERS AND SERVICE SWITCHES IN AUGUST THE COMPANY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER AN ADDITIONAL 18 MILLION SHARES THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE HEALTHCARE STOCKS DIDN'T FARE WELL ONE OF THE BIGGER STOCKS ON THE RUSSELL 2000 INDEX OXFORD HEALTH PLANS TUMBLED 6 3/4 TO 63 3/4 THE DARIEN CONN COMPANY AND OTHER HEALTHCARE STOCKS WERE DRAGGED DOWN BY NEWS OF DISAPPOINTING PREMIUMRATE INCREASES FOR MEDICARE PATIENTS IN 1994 THE NEW RATES WERE RELEASED ON TUESDAY BY THE HEALTH CARE FINANCING ADMINISTRATION T2 MEDICAL NYSE FELL 1 1/8 TO 6 1/4 THE ALPHARETTA GA INFUSIONTHERAPY COMPANY SAID A GROUP THAT INCLUDES PRESENT AND FORMER MEMBERS OF MANAGEMENT HAS INFORMED T2 THAT IT HAS TERMINATED EFFORTS TO ACQUIRE THE COMPANY THE COMPANY IS CONTINUING ITS ANNOUNCED SEARCH FOR A CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER AND EXPECTS TO REMAIN INDEPENDENT STRUCTURAL DYNAMICS RESEARCH TUMBLED 5 1/4 TO 13 3/4 ON FIVE MILLION SHARES NEARLY 12 TIMES ITS NORMAL VOLUME THE MILFORD OHIO COMPANY SAID IT EXPECTS TO REPORT THIRDQUARTER EARNINGS SUBSTANTIALLY BELOW ANALYSTS' ESTIMATES OF 18 CENTS A SHARE THE COMPANY HAD NET OF 10 CENTS A SHARE A YEAR EARLIER IT CALLED THE STOCK'S DROP A VERY SHORTTERM PROBLEM RONALD HOFFMAN STRUCTURAL DYNAMICS' CHIEF FINANCIAL OFFICER SAID HE EXPECTS WALL STREET ANALYSTS TO DROP THEIR ESTIMATES FOR 1993 TO 60 CENTS TO 65 CENTS A SHARE FROM 70 CENTS HE SAID HE IS COMFORTABLE WITH SUCH ESTIMATES THE COMPANY EARNED 48 CENTS A SHARE IN 1992 THE COMPANY BLAMES ITS ANTICIPATED EARNINGS SHORTFALL ON TECHNICAL PROBLEMS THAT DELAYED RELEASE OF ITS NEW MECHANICAL DESIGN AUTOMATION SOFTWARE BY ONE MONTH CUSTOMERS PUT OFF BUYING THE SOFTWARE UNTIL COMPLETION OF BENCHMARK TESTING WHICH THE COMPANY SAYS SHOULD BE BY THE END OF THE MONTH BORLAND INTERNATIONAL DROPPED 2 TO 15 GOLDMAN SACHS & CO DOWNGRADED THE STOCK TO MARKET PERFORMER FROM MODERATE MARKET OUTPERFORMER GOLDMAN ANALYST RICK SHERLUND ALSO REDUCED HIS FISCAL SECONDQUARTER EARNINGS ESTIMATE FOR BORLAND TO 10 CENTS A SHARE FROM 20 CENTS AND TRIMMED HIS FISCAL 1994 FULLYEAR FORECAST TO 85 CENTS FROM 1 IN THE PERIOD ENDED SEPT 30 1992 BORLAND EARNED 20 CENTS A SHARE IN FISCAL 1992 IT LOST 187 A SHARE ANNTAYLOR NYSE SLID 3 1/2 TO 23 1/2 THE WOMAN'S APPAREL RETAILER SAID EARNINGS FOR THE THIRD QUARTER ARE LIKELY TO FALL BELOW ANALYSTS' MEAN ESTIMATES OF 28 CENTS A SHARE TO ABOUT 20 CENTS TO 21 CENTS A SHARE DUE TO CONTINUED SLUGGISHNESS IN SAMESTORE SALES A SPOKESMAN SAID ANNTAYLOR'S SAMESTORE SALES DROPPED 22 IN AUGUST MILWAUKEE INSURANCE GROUP DROPPED 1 1/4 TO 10 3/4 LATE TUESDAY AFTERNOON THE MILWAUKEE COMPANY SAID THAT IT EXPECTS THIRDQUARTER RESULTS TO FALL SHORT OF YEARAGO EARNINGS OF 48 CENTS A SHARE WHICH INCLUDED AN EXTRAORDINARY GAIN OF EIGHT CENTS THE COMPANY BLAMED THE LARGE VOLUME OF CLAIMS FROM SUMMER STORMS IN THE CURRENT THIRD QUARTER THE INSURER SAID CLAIMS RECEIVED FROM WIND AND HAIL DAMAGE WERE ABOUT 15 MILLION FOR JULY AND AUGUST 9309090069 930909 HAFTS' BATTLE ESCALATES WITH FILING OF NEW SUIT THE HAFT FAMILY FEUD ESCALATED AS DART GROUP CORP CHAIRMAN HERBERT HAFT SUED HIS WIFE AND TWO OF THEIR CHILDREN CLAIMING THEY TRIED TO CAUSE THE IMPROPER DISSOLUTION OF THE FAMILY'S REALESTATE BUSINESS IN A SUIT FILED YESTERDAY IN DISTRICT OF COLUMBIA SUPERIOR COURT HERBERT HAFT 73 YEARS OLD AND HIS SON RONALD 34 ALLEGE THAT GLORIA HAFT 66 AND TWO OF THE COUPLE'S CHILDREN ROBERT 40 AND LINDA 43 BREACHED THEIR DUTIES AS GENERAL AND LIMITED PARTNERS IN THE FAMILY'S CLOSELY HELD COMBINED PROPERTIES THE COMPANY OWNS 43 SHOPPING CENTERS PRIMARILY IN THE WASHINGTON DC AREA IN THEIR 50PAGE COMPLAINT THE MEN ALLEGE AMONG OTHER THINGS THAT THE DEFENDANTS THREATENED TO HURT COMBINED'S RELATIONSHIPS WITH LENDERS IT SEEKS TO ENFORCE COMBINED'S PARTNERSHIP AGREEMENTS THE LAWSUIT FOLLOWS ONE FILED LAST MONTH BY LINDA HAFT WHO CHARGED HERBERT AND RONALD WITH FRAUD AND BREACH OF FIDUCIARY DUTY IN TRYING TO TAKE CONTROL OF THE REALESTATE BUSINESS ROBERT HAFT CALLED HIS FATHER'S SUIT TRAGICALLY FALSE AND UNTRUE MARNA TUCKER AN ATTORNEY FOR GLORIA HAFT CALLED IT A CONTINUING STREAM OF HIS PATTERN OF INTIMIDATION TO TRY TO SCARE HER OUT OF HER FAIR SHARE OF THE MARITAL ASSETS 9309090068 930909 OPTIONS EXCHANGES RENEW LISTINGS FIGHT BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO AS NEW SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT JR SETTLES INTO HIS JOB SOME OF THE NATION'S OPTIONS EXCHANGES ARE RENEWING A TURF BATTLE THAT MANY OBSERVERS THOUGHT HAD BEEN RESOLVED YEARS AGO AT THE HEART OF IT ARE THE EXCHANGES' EXCLUSIVE RIGHTS TO TRADE POPULAR OPTIONS CONTRACTS BASED ON HIGHVOLUME STOCKS A MONOPOLY THE SEC STAFF WANTS TO BREAK UP I THINK THEY'RE WRONG SAID NICHOLAS GIORDANO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PHILADELPHIA STOCK EXCHANGE ONE OF TWO EXCHANGES THOUGHT TO HAVE THE MOST TO LOSE UNDER THE SEC PLAN WHAT THEY WANT TO DO WILL FRAGMENT THE MARKETS IN A WAY MORE DAMAGING TO OPTIONS MARKETS THAN IT WOULD BE TO STOCK MARKETS AT A RATE OF 50 OPTIONS CONTRACTS PER FINANCIAL QUARTER THE SEC IS FORCING EXCHANGES TO RELINQUISH THEIR EXCLUSIVE CONTROL OF THE CONTRACTS CALLED MULTIPLE LISTING THE PLAN EVENTUALLY MAY SPAWN COMPETITION AMONG THE FOUR MAJOR US OPTIONS MARKETS FOR THEIR OWN BREADANDBUTTER FINANCIAL INSTRUMENTS TOGETHER THE CHICAGO BOARD OPTIONS EXCHANGE AND AMERICAN STOCK EXCHANGE COMMAND ROUGHLY 75 OF ALL TRADING IN US STOCK OPTIONS THE CBOE TRADES CONTRACTS ON SUCH BLUECHIP ISSUES AS GENERAL MOTORS AND INTERNATIONAL BUSINESS MACHINES WHILE THE AMEX CONTROLS BIG OPTIONS SUCH AS AMR AND DIGITAL EQUIPMENT IT ISN'T LIKELY THAT ANY OTHER EXCHANGE WILL BE ABLE TO STEAL AWAY BUSINESS IN THESE HUGE CONTRACTS WHEN THEY BECOME ELIGIBLE FOR MULTIPLE LISTING BUT THE SAME ISN'T NECESSARILY TRUE OF THE OPTIONS NOW EXCLUSIVELY TRADED AT THE PHILADELPHIA EXCHANGE AND THE PACIFIC STOCK EXCHANGE THE NEW YORK STOCK EXCHANGE TRADES OPTIONS BUT IS A DISTANT FIFTH IN MARKET SHARE AND REPORTEDLY IS CONSIDERING LEAVING THE BUSINESS THE AMEX AN AGGRESSIVE COMPETITOR THAT ONCE OFFERED TO BUY THE PHILADELPHIA EXCHANGE'S ENTIRE STOCKOPTIONS MARKET IS NOW SAID TO BE EYEING SOME OF THE CONTRACTS THAT TRADE ON THE PHILADELPHIA AND PACIFIC EXCHANGES THE MOST DESIRABLE OPTIONS AT THOSE EXCHANGES ARE COMPAQ COMPUTER AND MICROSOFT ON THE PACIFIC AND HOME DEPOT AND FANNIE MAE IN PHILADELPHIA LEE KORINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PACIFIC EXCHANGE CONTENDS MULTIPLE LISTING IS A BAD IDEA WE'VE GONE THROUGH A NUMBER OF QUARTERS OF MULTIPLE LISTINGS WITH MINIMAL IMPACT HE SAID BUT NOW YOU'RE GETTING DOWN TO THE 200 OR SO OPTIONS THAT ARE REALLY SIGNIFICANT I THINK EVEN THE SEC MAY HAVE SOME QUESTIONS ABOUT HOW INVESTORS ARE GOING TO BE PROTECTED DURING THIS TIME THE MULTIPLE LISTING PLAN WAS LAUNCHED BY THE ADMINISTRATION OF FORMER SEC CHAIRMAN RICHARD BREEDEN MANY IN THE INDUSTRY ASSERT MR BREEDEN FAILED TO ACKNOWLEDGE THE PROBLEMS THE PLAN MIGHT CREATE FOR INVESTORS NOW THROUGH SUCH SYMPATHETIC CONGRESSMEN AS REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE THEY ARE TRYING TO REOPEN THE DEBATE ON MULTIPLE LISTING UNDERLYING THE DISPUTE IS A HARD REALITY OF THE STOCKOPTIONS BUSINESS IN THE 1990S THERE PROBABLY ISN'T ENOUGH DEMAND FOR OPTIONS SINCE THE CRASH OF 1987 TO SUPPORT FOUR MAJOR EXCHANGES THE SMALLER EXCHANGES WORRY THAT BREAKUP OF THEIR MONOPOLY ON LUCRATIVE ISSUES MAY TRIGGER CONSOLIDATION OF THE INDUSTRY FORCING THEM TO MERGE WITH BIGGER EXCHANGES ADDING THEIR VOICES TO THE DEBATE ARE THE WALL STREET FIRMS THAT CONTROL CUSTOMER ORDERS FOR STOCK OPTIONS AN ORGANIZATION CALLED THE COMMITTEE ON OPTIONS PROPOSALS OR COOP WHICH REPRESENTS 38 OPTIONSTRADING FIRMS HAS CALLED FOR SAFEGUARDS TO PROTECT INVESTORS THERE'S GOT TO BE LINKAGE OF THE EXCHANGES ELECTRONICALLY SO THAT THE BEST BID OR OFFER WILL BE EVIDENT AND UPSTAIRS FIRMS WILL BE ABLE TO ROUTE THE ORDER TO THE BEST MARKETPLACE SAID MICHAEL SCHWARTZ CHIEF OPTIONS STRATEGIST AT OPPENHEIMER & CO AND COOP CHAIRMAN THERE APPEAR TO BE GOOD REASONS FOR SUCH LINKAGE ALTHOUGH EXCHANGES HAVE SO FAR REFRAINED FROM COMPETING FOR ONE ANOTHER'S FORMERLY EXCLUSIVE OPTIONS THEY HAVE SHOWN NO SUCH RESTRAINT IN LISTING OPTIONS ON NEW ISSUES LIKE SNAPPLE BEVERAGE AND ROYAL CARIBBEAN CRUISES LISTINGS AT SEVERAL EXCHANGES OF THESE AND OTHER STOCK ISSUES HAVE GIVEN RISE TO FEARS THAT THE SEC'S MULTIPLELISTING PLAN MAY CREATE OPPORTUNITIES FOR PROFESSIONAL SPECULATORS TO PICK OFF MARKET MAKERS ON EXCHANGE FLOORS ON A RECENT MORNING HARRISON ROTH SENIOR OPTIONS STRATEGIST AT COWEN & CO AND CHAIRMAN OF THE COOP'S STANDARDIZATION COMMITTEE PUNCHED UP PRICES FOR OPTIONS ON DEAN WITTER DISCOVER WHICH ARE TRADED AT THREE OF THE FOUR MAJOR OPTIONS EXCHANGES AT THAT MOMENT WITH DISCOVER STOCK TRADING AT 39 A SHARE A JANUARY 40 PUT OPTION ON THE STOCK COULD HAVE BEEN BOUGHT FOR ONE PRICE AT THE AMEX AND IMMEDIATELY RESOLD FOR A PROFIT AT THE EXPENSE OF A PHILADELPHIA STOCK EXCHANGE MARKET MAKER IT'S AN ARBITRAGER'S DREAM BUT A MARKET MAKER'S NIGHTMARE MR ROTH SAID ONE OF THOSE MARKETS MIGHT HAVE BEEN WRONG BECAUSE OF THE FACT THAT THE CONTRACT HADN'T TRADED RECENTLY AND THE MARKET MAKER HADN'T UPDATED HIS LISTING SOMEBODY MIGHT HAVE BOUGHT THE AMEX AND SOLD THE PHILLY YET SOME OPTIONS TRADERS SAY IT MIGHT BE MORE DIFFICULT TO MAKE SUCH CORRECTIONS QUICKLY IN A WORLD WHERE EVERY OPTIONS CONTRACT IS LISTED ON MORE THAN ONE EXCHANGE RECENTLY THE COOP HELPED TO PERSUADE THE SEC TO SLOW THE PACE OF MULTIPLE LISTINGS FROM 100 OPTIONS A QUARTER TO 50 A QUARTER NOW THE COOP IS CALLING FOR SUCH PROTECTIVE MEASURES AS A TRADE OR FADE RULEREQUIRING A MARKET MAKER IN A GIVEN STOCK OPTION IF THE OPTION IS AVAILABLE CHEAPER ELSEWHERE EITHER TO MATCH THE PRICE OR SEND THE ORDER TO THE CHEAPER EXCHANGE ANOTHER SAFEGUARD THE COOP WANTS IS A MECHANISM TO AUTOMATICALLY BLOCK COMPUTERGENERATED ORDERS FROM BEING FILLED AT ONE EXCHANGE IF A CHEAPER PRICE IS AVAILABLE ELSEWHERE THE INDUSTRY IS AWAITING A DECISION BY MR LEVITT AT THE SEC TO DETERMINE WHETHER MULTIPLE LISTING WILL CONTINUE AND IF IT DOES HOW TO PREVENT PROBLEMS THREE MONTHS AGO REP DINGELL WROTE A LETTER TO THE SEC ASKING THE AGENCY TO RETHINK ITS CURRENT MULTIPLELISTING PLAN MR LEVITT INHERITED THAT LETTER SAID ALGER B DUKE CHAPMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CBOE WE DON'T HAVE ANY INDICATION HE'D BE INCLINED TO STOP MULTIPLE LISTING BUT HE STILL HAS TO RESPOND TO THE LETTER MEANWHILE IVERS REILLY SENIOR EXECUTIVE VICE PRESIDENT OF THE AMEX ARGUES THAT MULTIPLE LISTING IS INEVITABLE THERE HAS BEEN FAR TOO MUCH TIME AND ENERGY SPENT ON ARGUING THIS ALREADY MR RILEY SAID I THINK IT'S A NECESSARY THING WE'RE ALL GOING TO HAVE TO LIVE WITH AND WE MIGHT AS WELL GET USED TO IT 9309090067 930909 CORNERSTONE IMAGING INC'S IPO SAN JOSE CALIF CORNERSTONE IMAGING INC ANNOUNCED ITS INITIAL PUBLIC OFFERING OF 18 MILLION SHARES OF COMMON STOCK AT 11 A SHARE OF THE TOTAL 1440000 SHARES WERE OFFERED BY THE COMPANY AND THE REMAINING 360000 SHARES BY CERTAIN SELLING SHAREHOLDERS THE COMPANY WHICH MAKES DOCUMENTIMAGING SUBSYSTEMS FOR PERSONAL COMPUTERS SAID PROCEEDS OF THE OFFERING WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9309090065 930909 WEDNESDAY'S MARKETS STOCKS FALL 1817 POINTS BONDS RALLY FED SURVEY SUGGESTS FURTHER SLUGGISHNESS IN NATION'S ECONOMY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES FELL FOR THE SECOND CONSECUTIVE DAY DESPITE THE CONTINUED BOND MARKET RALLY THE DOLLAR WAS FLAT AGAINST THE MARK BUT ROSE AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE FELL 1817 POINTS TO 358893 THE FIRST TIME THE BENCHMARK HAS BEEN BELOW 3600 SINCE AUG 17 STANDARD & POOR'S 500STOCK INDEX LOST 187 TO 45665 AND THE NASDAQ COMPOSITE INDEX SANK 862 TO 73073 THE STOCK MARKET IS LANGUISHING UNDER A BARRAGE OF POOR ECONOMIC NEWS THE LATEST SIGN OF ECONOMIC SLUGGISHNESS CAME YESTERDAY IN THE FEDERAL RESERVE'S BEIGE BOOK A COMPENDIUM OF ECONOMIC REPORTS FROM AROUND THE COUNTRY THE REPORT SAID THE ECONOMY GREW AT A SLOW TO MODERATE RATE IN LATE JULY AND AUGUST ABOUT THE SAME AS IN THE PREVIOUS PERIOD THE TWODAY DECLINE IN STOCKS SLICED 12 OFF THE INDUSTRIAL AVERAGE DAMAGE WAS WORSE FOR THE NASDAQ COMPOSITE WHICH PLUNGED 26 THE DOW JONES TRANSPORTATION AVERAGE FELL 2008 POINTS TO 159309 YESTERDAY AFTER A 1069POINT DROP TUESDAY FOR A TWODAY DECLINE OF 19 BUT MANY ANALYSTS REMAIN UPBEAT PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES NOTED THAT CONSUMER SPENDING AUTO SALES AND HELPWANTED ADVERTISING ALL ARE IMPROVING HE PREDICTED THAT LOW INTEREST RATES WILL CONTINUE TO SUPPORT THE STOCK MARKET THIS IS NOT THE BIG CORRECTION HE SAID WE'LL PROBABLY COME OUT OF THIS AND MOVE TO NEW HIGHS ON THE DOW IN THE BOND MARKET LONGTERM INTEREST RATES CONTINUED TO FALL BUT SHORTER RATES CREPT HIGHER THE YIELD ON THE 30YEAR ISSUE REACHED ANOTHER 16YEAR LOW AT 586 DONALD MAUDE CHIEF US FIXED INCOME STRATEGIST AT SCOTIA MCLEOD USA SAID SHORTTERM RATES ROSE AFTER FEDERAL RESERVE VICE CHAIRMAN DAVID MULLINS SAID NO FURTHER CUTS WERE LIKELY SOON THE SHORT END WAS BUILDING UP SOME HOPE OF A FED EASING BUT THREW IN THE TOWEL AFTER THOSE COMMENTS MR MAUDE SAID BUT HE ADDED THAT INVESTORS CONTINUE TO POUR HUGE SUMS OF MONEY INTO LONGTERM GOVERNMENT BONDS IN PART AS A RESULT OF FUNDS INVESTED IN MORTGAGEBACKED SECURITIES BEING RETURNED TO THEM AS HOMEOWNERS RUSH TO REFINANCE THEIR MORTGAGES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 094 TO 11253 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2787 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1430 ISSUES FELL AND 606 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16130 MARKS AND 10560 YEN COMPARED WITH 16130 MARKS AND 10420 YEN TUESDAY 9309090064 930909 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRNEDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN HAVE A BITE AT THE SUPERMARKET URGE GROCERY STORES WITH NEW DINING AREAS BIGGER DELIS FOOD COURTS AND FRANCHISE OUTLETS RING IN A GROWING TREND TO COMPETE FOR THE DINING DOLLAR IN THE CHICAGO AREA A JEWEL FOOD MEGASTORE ADDS HOUSE PIZZA A MINIMCDONALD'S A PANDA EXPRESS CHINESE TAKEOUT PLACE AND AN ICE CREAM SHOP JEWEL PARENT AMERICAN STORES SAYS SEVERAL OF ITS OTHER CHAINS MULL THE IDEA A LUCKY STORE NEAR SAN FRANCISCO ADDS A TACO BELL ALSO IN CHICAGOLAND DOMINICK'S PLANS TO SERVE SUCH DISHES AS PASTA AT SEVERAL OF ITS STORES SEEKING DINERS IS ALMOST A NATURAL EXPANSION FOR GROCERY STORES SAYS KAREN BROWN OF THE FOOD MARKETING INSTITUTE IN WASHINGTON BUT SHE NOTES THAT METHOD AND TASTE ARE VERY DIFFERENT BY REGION IN MAINE HANNAFORD BROS FOOD CHAIN CONSIDERS ADDING A FOOD COURT IN THE FORM OF A DELI SPINOFF IN SOME STORES BUT IN NEW YORK FOOD CHAINS LIKE D'AGOSTINO'S AND THE GREAT ATLANTIC & PACIFIC TEA CO SAY SPACE IS TOO DEAR TO ADD DINING FACILITIES KMART SERVES UP LITTLE CAESAR'S PIZZA IN ABOUT 500 OF ITS STORES OTHER KMARTS SELL HOT DOGS AND SUCH PREPARED INHOUSE A SMALLER WINE BOTTLE DESIGNED FOR THE SOBER '90S SEEKS A PLACE ON THE TABLE SOME VINEYARDS TRY TO PUSH WINE IN 500 MILLILITER BOTTLES TWOTHIRDS THE REGULAR WINEBOTTLE SIZE BACKERS SAY THE NEW SIZE WHICH HOLDS FOUR NOT SIX GLASSES IS WELLSUITED TO AMERICANS WHO ARE DRINKING FINER WINES IN SMALLER AMOUNTS CONSUMERS ARE REFUSING TO BUY MORE THAN THEY CAN DRINK SAYS LARRY WILLIAMS OF THE JORDAN WINERY IN CALIFORNIA WHICH THIS YEAR BEGAN SELLING A CABERNET AND A CHARDONNAY IN THE NEW SIZE MR WILLIAMS CONTENDS TOO THAT THE SIZE IS A BETTER OPTION THAN THE HALF OR 375MILLILITER BOTTLE WHICH HOLDS ABOUT THREE GLASSESNOT ENOUGH FOR A DINING COUPLE AFTER 2 1/2 YEARS OF TESTING THE NEW BOTTLE GETS MIXED REVIEWS RETAILERS AND RESTAURATEURS LIKE IT BUT SAY MORE WINERIES NEED TO PROMOTE THE SIZE FOR IT TO BE SUCCESSFUL ABOUT NINE WINERIES HAVE TRIED THE NEW SIZE BUT A FEW LIKE KENDALLJACKSON AND FROG'S LEAP HAVE SINCE DROPPED THE BOTTLE CUSTOM PUBLISHING BLOOMS AS MARKETERS FINETUNE AUDIENCES AND CONTROL COPY ARE THEY MAGAZINES OR CATALOGS THESE GLOSSY PUBLICATIONS THAT MIX ARTICLES AND PRODUCTS TRY MAGALOGS SUGGESTS A SPOKESMAN FOR SONY STYLE A THICK SHINY MAGAZINE FEATURING TOPICS LIKE HOW TO PICK THE RIGHT WALKMAN AND GETTING THE MOST FROM AN ANSWERING MACHINE ALL SONY PRODUCTS OF COURSE AND TARGET STORES SCORES WITH A SPLASHY TARGET THE FAMILY BOOK PUBLISHED BY GRUNER + JAHR'S PARENTS MAGAZINE CUSTOM WORK IS PROBABLY THE STRONGEST SINGLE UNDERCURRENT IN PUBLISHING SAYS JAMES GUTHRIE OF THE MAGAZINE PUBLISHERS OF AMERICA FIRMS WITH CUSTOM PUBLICATIONS OR PLANS FOR SUCH INCLUDE XEROX IBM FORD DATSUN MERRILL LYNCH PROCTER & GAMBLE AND BURGER KING PUBLISHERS GET BESIDES THE BUSINESS A SOPHISTICATED DATABASE AND MARKETRESEARCH INSIGHTS FREQUENCY VARIES BUT MANY OF THE MAGAZINES ARE PUBLISHED AT LEAST ONCE A MONTH MOST OF THE PUBLICATIONS ARE FREE BUT SONY STYLE WHICH COMES OUT TWICE A YEAR FETCHES 495 PER ISSUE HOLOGRAMS HELP FIGHT COUNTERFEITS IN THE SOFTWARE INDUSTRY AND MORE RECENTLY IN THE COMPACTDISK FIELD SAYS PACKAGING MAGAZINE NEXT HOLOGRAPHICS ON PERFUME PHARMACEUTICALS AND LIQUOR IT SAYS ACCESS TO SPECIALISTS AND OTHER SERVICES WILL BE PROVIDED BY OKLAHOMA'S PLANNED TELEMEDICINE NETWORK THE PILOT WILL LINK RURAL HOSPITALS TO URBAN AND REGIONAL MEDICAL CENTERS VIA A SYSTEM FUNDED BY 34 MILLION IN FEDERAL COMMUNITY BLOCK GRANTS BIG HOSPITALS COMPETE FOR LINKUP AND RESULTING CONSULTATION FEES BOWLING CENTERS DIPPED 2 TO 7250 IN THE YEAR ENDED IN JULY SAYS THE AMERICAN BOWLING CONGRESS IN GREENDALE WIS BUT THE GROUP ADDS THAT WHILE THE NUMBER OF CENTERS IS SHRINKING THE AVERAGE SIZE GREW A BIT TO 196 LANES PER CENTER IN THE MOST RECENT YEAR AT ITS PEAK IN 196263 THERE WERE SOME 11476 BOWLING CENTERS AUTUMN MAY BE ROCKY FOR THE GLOBAL TRAVEL INDUSTRY THE WORLD TRAVEL AND TOURISM COUNCIL SAYS THAT ADVANCE SEPTEMBER BOOKINGS FOR EUROPEAN AIRLINES HOTELS AND CAR RENTALS WERE MIXED EUROPEAN AIRLINE BOOKINGS GAINED 78 FROM THE YEARAGO MONTH BUT HOTELS REPORTED A 55 DROP IN BOOKINGS AND CAR RENTALS DIPPED FROM '93 OCTOBER BOOKINGS LOOK BETTER WITH AIRLINES HOTELS AND CAR RENTALS ALL HIGHER THAN A YEAR AGO THE NORTH AMERICAN MARKET IS EVEN MORE MIXED WITH AIRLINE ADVANCE BOOKINGS DOWN 49 FOR SEPTEMBER BUT UP 114 FOR OCTOBER SO FAR THIS YEAR THE UK HAS BEEN A TRAVEL WINNER AS FALLING INTEREST RATES LOW INFLATION AND A DROP IN THE POUND'S VALUE COMBINED TO ATTRACT FOREIGN BUSINESS AND TOURISTS SAYS LONDON'S HORWATH CONSULTING LONDON'S HOTELIERS ARE CLEARLY LEADING THE RECOVERY SAYS GEOFF PARKINSON A HORWATH DIRECTOR STILL HE WARNS THAT HIGH FIXED COSTS AND DEPRESSED CONSUMER SPENDING CONTINUE TO NAG AT HOTELS WITH NO REAL GAINS SEEN UNTIL NEXT YEAR VISITORS TO THE UK HIT A RECORD 69 MILLION TOURISTS FOR THE FIRST FIVE MONTHS OF '93 SAYS THE BRITISH TOURIST AUTHORITY BRIEFS CHEERING FOR ITSELF WINCRAFT INC IN WINONA MINN BOASTS THAT IT MAKES POMPOMS FOR EIGHT OF THE 28 NATIONAL FOOTBALL LEAGUE CHEERLEADING TEAMS A LONDON TOBACCONIST'S SIGN READS THANK YOU FOR SMOKING 9309090063 930909 BUSINESS BRIEFS ALCO STANDARD CORP AN OFFICEEQUIPMENT DISTRIBUTION AND SERVICE COMPANY ACQUIRED COPYTECH INC OF GULFPORT MISS COPYTECH SELLS LEASES AND SERVICES CANON COPIERS AND OTHER EQUIPMENT UNC INC AN AVIATION CONCERN ACQUIRED ALL THE ASSETS OF ALL FAB INC A MAKER OF AEROSPACE STRUCTURAL COMPONENTS AND SHEETMETAL SUBASSEMBLIES TERMS WEREN'T DISCLOSED UNISYS CORP FORMED A CLIENT/SERVER SYSTEMS BUSINESS UNIT THAT WILL CONCENTRATE ON DEVELOPMENT AND MARKETING OF UNISYS UNIX SERVERS WORKSTATION SYSTEMS AND RELATED PRODUCTS GARTNER GROUP INC ACQUIRED THE OUTSTANDING CAPITAL STOCK OF NEW SCIENCE ASSOCIATES INC A PROVIDER OF SUBSCRIPTIONBASED RESEARCH ANALYSIS TERMS WEREN'T DISCLOSED HANOVER DIRECT INC THE WEEHAWKEN NJ DIRECT RETAILER FORMERLY KNOWN AS HORN & HARDART CO AGREED TO ACQUIRE TWEEDS INC A WOMEN'S FASHION CATALOG COMPANY THE PURCHASE PRICE INCLUDES ABOUT 39 MILLION IN STOCK AND THE ASSUMPTION OF ABOUT 51 MILLION IN DEBT 9309090062 930909 WHO'S NEWS MERRILL STRENGTHENS RETAIL DIVISION PUTS URCIUOLI IN CHARGE OF MARKETING BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO IS BEEFING UP ITS HUGE RETAIL DIVISION WITH MOVES THAT COULD POSITION THE SECURITIES FIRM BETTER FOR A MORE HOSTILE INVESTMENT CLIMATE THE HANDFUL OF NEW APPOINTMENTS IN THE RETAIL DIVISION ARE ALSO SEEN AS CONSOLIDATING THE POWER OF THE HEAD OF MERRILL'S BROKERAGE OPERATIONS JOHN L STEFFENS MR STEFFENS IS IN THE RUNNING FOR MERRILL'S PRESIDENCY A POSITION VACANT SINCE JUNE IN THE BIGGEST MOVE MERRILL NAMED J ARTHUR URCIUOLI 55 YEARS OLD AS DIRECTOR OF MARKETING FOR ITS PRIVATE CLIENT GROUP THE RETAIL BROKERAGE DIVISION THAT MANAGES ASSETS FOR 62 MILLION INVESTORS THE POST HAS BEEN VACANT FOR SEVERAL YEARS MR URCIUOLI A SENIOR VICE PRESIDENT AND 24YEAR VETERAN OF MERRILL IS CURRENTLY THE DIRECTOR OF ITS BUSINESS FINANCIAL SERVICES DIVISION UNDER MR URCIUOLI MERRILL HAS USED ITS BUSINESSLENDING UNIT AS A FOOT IN THE CORPORATE DOOR A VEHICLE THROUGH WHICH THE FIRM CAN EVENTUALLY WIN THE JOB OF MANAGING CORPORATE PENSION ASSETS INSURANCE OR FINANCIAL ASSETS OF A CLIENT COMPANY AND ITS EXECUTIVES HE FOUNDED THE UNIT IN 1984 AND NOW HAS ABOUT 100 BILLION UNDER MANAGEMENT INCLUDING 32 BILLION IN LUCRATIVE CORPORATE AND INDIVIDUAL WRAP ACCOUNTS AND 401K PLANS IN GENERAL THE PRODUCTS AND PROGRAMS MR URCIUOLI OVERSAW IN THE BUSINESS GROUP ARE FEEBASED STABLE INCOME PRODUCERS THAT DON'T RELY ON LOW INTEREST RATES OR THE HIGH COMMISSION INCOME THAT COMES DURING A WALL STREET BOOM PRESUMABLY THAT EXPERTISE WILL HELP HIM TO LESSEN THE CYCLICALITY OF THE RETAIL DIVISION'S INCOME IN HIS NEW POSITION HE SAID IT WILL BE STRATEGICALLY IMPORTANT TO ENCOURAGE BOTH INDIVIDUAL AND CORPORATE CLIENTS TO HAVE THE RIGHT BALANCE OF MONEY MARKET FUNDS BONDS AND STOCKS BOTH US AND INTERNATIONAL INVESTMENTS MR URCIUOLI WILL WORK CLOSELY WITH MR STEFFENS WHO HAD UNTIL 1985 ALSO HELD THE POSITION OF DIRECTOR OF MARKETING CURRENTLY THE POSITION OF PRESIDENT IS EMPTY AT MERRILL AND ANALYSTS SAY THE LEADING CANDIDATE IS MR STEFFENS BUT HERBERT M ALLISON JR HEAD OF INVESTMENT BANKING AND FORMER CHIEF FINANCIAL OFFICER AND DAVID KOMANSKY HEAD OF THE FIRM'S EQUITY AND BOND DIVISIONS ARE IN THE RUNNING IN OTHER APPOINTMENTS MADELINE A WEINSTEIN 43 CURRENTLY IN CHARGE OF MERRILL'S MANAGEMENT AND BROKER TRAINEE PROGRAMS WILL BECOME DIRECTOR OF STRATEGIC PROFESSIONAL DEVELOPMENT A NEW POSITION IN ITS PRIVATE CLIENT GROUP MS WEINSTEIN WILL WORK WITH BROKERS AND MERRILL BRANCH MANAGERS ON COMPENSATION CAREER DEVELOPMENT AND PERFORMANCE REVIEW MATTERS FOR MERRILL'S 12000BROKER SALES FORCE G STEPHEN THOMA 48 WAS NAMED DIRECTOR OF BUSINESS FINANCIAL SERVICES FILLING THE VACANCY CREATED BY MR URCIUOLI'S PROMOTION MR THOMA MOST RECENTLY SERVED AS FIRST VICE PRESIDENT OF BUSINESS FINANCIAL SERVICES AND DIRECTOR OF GROUP EMPLOYEE SERVICES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MERRILL CLOSED AT 95 UP 25 CENTS 9309090061 930909 INTERNATIONAL LLOYD'S OF LONDON IS LOSING MERRETT ITS DEPUTY CHIEF BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON STEPHEN MERRETT DEPUTY CHAIRMAN OF LLOYD'S OF LONDON RESIGNED AMID FINANCIAL TROUBLES AT MERRETT HOLDINGS PLC THE LLOYD'S UNDERWRITING GROUP HE HEADS MR MERRETT 54 YEARS OLD ALSO RESIGNED AS A MEMBER OF LLOYD'S COUNCIL AND MARKET BOARD ALL EFFECTIVE IMMEDIATELY HE CITED HIS INCREASING WORKLOAD AS CHAIRMAN OF MERRETT A FAMILY BUSINESS SUCCEEDING MR MERRETT AS DEPUTY CHAIRMAN OF THE INSURANCE MARKET IS RICHARD KEELING THE 48YEAROLD DEPUTY CHAIRMAN OF MURRAY LAWRENCE & PARTNERS MANAGING AGENCY AND A MEMBER OF LLOYD'S COUNCIL MR MERRETT HAS BEEN STRUGGLING TO MAINTAIN THE CAPITAL BASE OF MERRETT HOLDINGS WHICH HAS SEEN A DRAIN OF FUNDS FROM ITS INVESTORS WHO ARE KNOWN AS NAMES THE COMPANY ONE OF THE LARGEST UNDERWRITERS PARTICIPATING IN THE LLOYD'S MARKET HAS SUFFERED HEAVY LOSSES ON ITS ASBESTOS AND POLLUTION INSURANCE IN THE US THE SPOKESMAN ACKNOWLEDGED THAT MERRETT HAS FELT A CONSIDERABLE SHORTFALL OF CAPITAL FROM INDIVIDUAL INVESTORS BUT SAID IT EXPECTS TO MAKE UP FOR THE SHORTFALL WITH CORPORATE CAPITAL BECAUSE OF THE WAY LLOYD'S WAS ESTABLISHED WITH UNLIMITED LIABILITY FOR INSURANCE CLAIMS MANY INDIVIDUAL INVESTORS HAVE LOST THEIR FORTUNES THROUGH THE LLOYD'S MARKET RECENTLY AND AS A RESULT HAVE WITHDRAWN MR MERRETT HAD PREVIOUSLY ANNOUNCED THAT HE WOULD STEP DOWN AT THE END OF THE YEAR AS UNDERWRITER FOR ONE OF MERRETT'S SYNDICATES THE SYNDICATE ONE OF NINE OPERATED BY MERRETT HAD SUFFERED HEAVY LOSSES CRITICS HAD ALSO CHARGED MR MERRETT WITH A CONFLICT OF INTEREST BECAUSE WHILE HE WAS DEPUTY CHAIRMAN OF LLOYD'S HE CHALLENGED A LLOYD'S REVIEW COMMITTEE THAT HAD CRITICIZED ONE OF MERRETT'S SYNDICATES A SPOKESMAN FOR MR MERRETT DISMISSED ANY CONFLICT OF INTEREST AS MORE PERCEPTION THAN REAL HE SAID THAT WHENEVER LLOYD'S COUNCIL REVIEWED ONE OF MERRETT'S SYNDICATES MR MERRETT DISQUALIFIED HIMSELF FROM THE PROCEEDINGS A LLOYD'S SPOKESWOMAN SAID MR MERRETT STEPPED DOWN BECAUSE OF WORK PRESSURE BUT DECLINED TO COMMENT FURTHER 9309090060 930909 FLIGHT ATTENDANT UNION AT AMERICAN AIRLINES TO SHIP STRIKE BALLOTS THE BOARD OF AMERICAN AIRLINES FLIGHT ATTENDANTS UNION VOTED TO SEND STRIKE AUTHORIZATION BALLOTS TO ITS 21000 MEMBERS THE MOVE CAME ONE DAY AFTER A FEDERAL MEDIATOR SUSPENDED NEGOTIATIONS BETWEEN THE AMR CORP UNIT AND THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS THE TWO SIDES HAVE BEEN IN DISCUSSIONS OVER A NEW CONTRACT FOR NEARLY A YEAR A SPOKESMAN FOR AMERICAN SAID THE AIRLINE WASN'T SURPRISED BY THE UNION'S ACTION IT'S NOT UNCOMMON IN LABOR NEGOTIATIONS FOR UNIONS TO DO THIS HE SAID AMERICAN'S MOST RECENT CONTRACT PROPOSAL MADE LAST WEEK IS A PACKAGE THAT OFFERS PAY INCREASES OF AS MUCH AS 40 TO SOME OF ITS LOWSENIORITY FLIGHT ATTENDANTS BUT THE UNION SAYS THE PROPOSED INCREASES ARE ONLY 1 TO 11 HIGHER FOUR YEARS AFTER CUTS TO HEALTH BENEFITS SCHEDULING AND STAFFING ARE FACTORED IN THE ATTENDANTS HAVEN'T HAD A PAY RAISE IN NEARLY 10 YEARS UNION OFFICIALS SAY THE UNION REJECTED AMERICAN'S OFFER BUT WANTS TO RESUME NEGOTIATIONS ON TUESDAY HOWEVER THE AIRLINE THIS WEEK ASKED THE NATIONAL MEDIATION BOARD WHICH OVERSEES LABOR NEGOTIATIONS FOR AIRLINES TO DECLARE AN IMPASSE IN THE TALKS THAT WOULD TRIGGER A 30DAY COOLINGOFF PERIOD AFTER WHICH AMERICAN COULD IMPOSE ITS NEW CONTRACT AND THE FLIGHT ATTENDANTS WOULD BE FREE TO STRIKE WE'VE BEEN IN MEDIATION SINCE LATE MAY 25 AND THERE ARE STILL MORE THAN 200 OPEN PROPOSALS THE SPOKESMAN SAID THAT TELLS US THAT THE MEDIATION PROCESS IS EXHAUSTED 9309090059 930909 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 CIT GROUP HOLDINGS INC 150 MILLION OF FLOATINGRATE NOTES DUE SEPT 15 1995 PRICED THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT DAILY AT PRIME MINUS 240 BASIS POINTS THE NOTES WILL INITIALLY BE PRICED AT PAR PRIME IS CURRENTLY 6 THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP CIT IS A UNIT OF DAIICHI KANGYO BANK AND CHEMICAL BANKING CORP COCACOLA ENTERPRISES INC 250 MILLION OF DEBENTURES DUE SEPT 15 2023 PRICED AS 675S AT 99364 TO YIELD 68 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 200 MILLION OF STEPUP NOTES DUE SEPT 23 1996 PRICED AT PAR TO YIELD 36 ACCORDING TO MCM CORPORATEWATCH THE NOTES CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE TREASURYS THE COUPON STEPS UP TO 45 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE SEPT 17 2003 PRICED AS 574S AT PAR ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 51 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC MASCO CORP 200 MILLION OF NOTES DUE SEPT 15 2003 PRICED AT PAR TO YIELD 6125 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC NIAGARA MOHAWK POWER CORP 230 MILLION OF FIRST MORTGAGE BONDS DUE SEPT 1 2002 PRICED AS 5875S AT 99852 TO YIELD 5896 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SOUTHWESTERN BELL TELEPHONE CO 400 MILLION TWOPART ISSUE OF DEBENTURES PRICED BY UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF DEBENTURES DUE SEPT 1 2004 WAS PRICED AS 575S AT 99643 TO YIELD 5794 THE DEBENTURES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF DEBENTURES DUE SEPT 1 2024 WAS PRICED AS 6625S AT 9775 TO YIELD 68 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHWESTERN BELL TELEPHONE IS A UNIT OF SOUTHWESTERN BELL CORP TEMPLETON CHINA WORLD FUND INC INITIAL OFFERING OF 173 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH CONNECTICUT 2491 MILLION 1993 SERIES B SPECIALTAXOBLIGATION REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 25 IN 1994 TO 475 IN 2006 MOODY'S HAS RATED THE BONDS SINGLEA1 AND BOTH S&P AND FITCH INVESTORS SERVICE INC HAVE ASSIGNED DOUBLEAMINUS RATINGS MARYLAND DEPARTMENT OF TRANSPORTATION 2491 MILLION BONDS APPARENTLY WON BY A GROUP LED BY GOLDMAN SACHS & CO THE GROUP IS BELIEVED TO HAVE WON 40 MILLION CONSOLIDATED TRANSPORTATION BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 45 THE 2091 MILLION CONSOLIDATED TRANSPORTATION REFUNDING BONDS ARE BELIEVED TO HAVE BEEN WON WITH A BID SETTING THE TRUE INTEREST COST AT 411 YIELDS FOR BOTH SETS OF BONDS RANGE FROM 305 IN 1995 TO 455 IN 2005 THE ISSUE HAS BEEN RATED DOUBLEA BY MOODY'S S&P AND FITCH WASHINGTON PUBLIC POWER SUPPLY SYSTEM 6919 MILLION SERIES 1993C REVENUE REFUNDING BONDS FOR NUCLEAR POWER PROJECTS NO 1 AND NO 3 HAVE BEEN PRICED BY A FIRST BOSTON CORP GROUP INCLUDED IN THE OFFERING ARE 1675 MILLION NUCLEAR PROJECT NO 1 BONDS WITH YIELDS RANGING FROM 27 IN 1994 TO TO 552 IN 2015 THE OFFERING ALSO INCLUDES 5244 MILLION NUCLEAR PROJECT NO 3 BONDS PRICED TO YIELD FROM 27 IN 1994 TO 575 FOR ZEROCOUPON BONDS DUE IN 20152018 NEARLY ALL OF THE BONDS HAVE DOUBLEA RATINGS FROM MOODY'S S&P AND FITCH NUCLEAR PROJECT NO 3 BONDS DUE IN 2008 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WISCONSIN 1167 MILLION 1993 SERIES A TRANSPORTATION REVENUE REFUNDING BONDS PRICED BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE FROM 25 IN 1994 TO 503 IN 2012 THE NONCALLABLE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 101 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993202 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993197 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 67 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993201 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 248 BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 85 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 292 YEARS THE UNDERWRITER IS KIDDER PEABODY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993200 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 218 WHICH IS BACKED IN TURN BY 30YEAR 75 MORTGAGE SECURITIES BICBANCO SA BRAZIL 50 MILLION OF 10 EUROBONDS DUE MARCH 15 1996 AT ISSUE AND REOFFER PRICE 99875 VIA SOCIMER INTERNATIONAL BANK LTD BONDS YIELD 9975 A SPREAD OF 615 BASIS POINTS ABOVE US TREASURY CURVE FEES 125 POINTS INTEREST PAYABLE SEMIANNUALLY CHEUNG KONG FINANCE CAYMAN ISLANDS LTD HONG KONG PARENT 500 MILLION OF 55 EUROBONDS DUE SEPT 30 1998 AT ISSUE AND REOFFER PRICE 9991 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 6522 A SPREAD OF 83 BASIS POINTS OVER FIVEYEAR US TREASURY GUARANTOR CHEUNG KONG HOLDINGS LTD FEES 04 POINT DHANA SIAM FINANCE & SECURITIES PUBLIC CO THAILAND 45 MILLION OF CONVERTIBLE EUROBONDS DUE OCT 6 2003 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD INDICATED COUPON 4 TO 45 FINAL ISSUE SIZE AND OTHER TERMS FIXED SEPT 15 BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY FROM DEC 3 TO SEPT 21 2003 AT INDICATED PREMIUM 5 TO 8 OVER AVERAGE CLOSING SHARE PRICE OF FIVE DAYS UP TO AND INCLUDING PRICING DATE YESTERDAY'S CLOSING SHARE PRICE 270 THAI BAHT 1073 AFTER THREE YEARS ISSUER HAS OPTION TO FORCE BONDHOLDERS TO CONVERT BONDS PROVIDED THEN PREVAILING SHARE PRICE IS AT LEAST 140 OF CONVERSION PRICE FEES 25 POINTS LESS 025 POINT FOR LEAD MANAGER MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF 36 EUROBONDS DUE OCT 3 1997 AT ISSUE AND REOFFER PRICE 10025 VIA FUJI INTERNATIONAL FINANCE PLC BONDS YIELD 353 GUARANTOR MITSUBISHI CORP FEES 025 POINT THERMO INSTRUMENTS SYSTEMS INC US PARENT 60 MILLION OF 375 CONVERTIBLE EUROBONDS DUE OCTOBER 2000 AT ISSUE PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT CONVERSION PRICE 3175 A PREMIUM OF 1493 OVER YESTERDAY'S MIDMARKET PRICE BONDS NONCALLABLE FOR FIRST THREE YEARS GUARANTOR THERMO ELECTRON CORP FEES 25 POINTS INTEREST PAYABLE SEMIANNUALLY WORLD BANK SUPRANATIONAL 125 BILLION OF 525 GLOBAL BONDS DUE SEPT 16 2003 AT ISSUE AND REOFFER PRICE 99401 VIA LEHMAN BROTHERS INC AND NOMURA SECURITIES CO BONDS YIELD 533 A SPREAD OF 10 BASIS POINTS ABOVE COMPARABLE US TREASURY THE BORROWER'S OUTSTANDING SENIOR DEBT IS RATED TRIPLEA BY BOTH MOODY'S AND S&P FEES 0325 POINT INTEREST PAYABLE SEMIANNUALLY 9309090058 930909 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG IF YOU USE OR WANT TO USE YOUR PERSONAL COMPUTER TO MANAGE YOUR FINANCES YOU'RE IN LUCK THE BEST SOFTWARE PACKAGE FOR DOING SO INTUIT'S QUICKEN IS GETTING BETTER THIS MONTH WITH IMPROVED VERSIONS THAT STILL WILL COST ONLY AROUND 30 OR 40 IN DISCOUNT STORES AND ANOTHER PUBLISHER COMPUTER ASSOCIATES OF ISLANDIA NY IS BIDDING FOR INSTANT MARKET SHARE BY PRACTICALLY GIVING AWAY A PRETTY GOOD COMPETITOR TO QUICKEN WITH THE UNGAINLY NAME OF KIPLINGER'S CASIMPLY MONEY FOR JUST A 695 SHIPPING AND HANDLING FEE FOR YEARS NOW INTUIT OF MENLO PARK CALIF HAS LED THE WAY IN MAKING IT EASY TO MANAGE YOUR FINANCES ON A COMPUTER QUICKEN HAS BEEN SO USEFUL AND SO LOW PRICED IN FACT THAT FOR SOME FOLKS IT JUSTIFIED OWNING A PC IN THE FIRST PLACE AFTER TESTING THE NEW VERSION FOR IBMCOMPATIBLES RUNNING MICROSOFT WINDOWS A SIMILAR NEW VERSION FOR IBMCOMPATIBLES THAT RUN ONLY THE MSDOS OPERATING SYSTEM WITHOUT WINDOWS ALSO IS DUE OUT THIS MONTH I BELIEVE QUICKEN REMAINS THE BEST PROGRAM IN THIS CATEGORY BUT NOW THERE IS A REAL COMPETITOR TO QUICKEN AT LEAST FOR WINDOWS USERS SIMPLY MONEY ISN'T QUITE AS POWERFUL OR SLICK BUT IT FEATURES ITS OWN DISTINCTIVE EASYTOUSE APPROACH AND IS A TERRIFIC VALUE AT 695 IT HAS A FEW GLITCHES AND SATISFIED QUICKEN USERS WON'T GAIN FROM SWITCHING TO SIMPLY MONEY FOR PEOPLE JUST STARTING TO PUT THEIR FINANCES ON THE COMPUTER HOWEVER IT IS A WORTHY ALTERNATIVE QUICKEN HAS LONG RELIED ON TWO ONSCREEN METHODS FOR ENTERING TRANSACTIONS A SCREEN THAT LOOKS LIKE A CHECK AND ANOTHER THAT RESEMBLES A CHECKBOOK REGISTER THE NEW VERSION NOW ADDS A THIRD WAY OF ENTERING SUCH THINGS AS PAYMENTS DEPOSITS AND TRANSFERS A CALENDAR ONTO WHICH YOU SIMPLY DRAG TRANSACTION ENTRIES USING A MOUSE THIS CALENDAR FEATURE SAVES A LOT OF TYPING AND ALLOWS REALLY ORGANIZED PEOPLE TO PLAN TRANSACTIONS SUCH AS BILL PAYMENTS WELL INTO THE FUTURE DISORGANIZED PEOPLE LIKE ME WHO PAY BILLS WHENEVER THE PILE OF UNOPENED BILL ENVELOPES BEGINS TO ANNOY THEIR SPOUSES CAN STILL USE THE CALENDAR BY SIMPLY DRAGGING A WHOLE BUNCH OF PAYMENT ENTRIES ONTO THE DAY WHEN THE PILE GOT TOO HIGH THE NEW QUICKEN ALSO HAS A BUNCH OF SMALLER ENHANCEMENTS IN THE CHECK REGISTER YOU NOW CAN POP UP A LITTLE CALENDAR THAT LETS YOU PICK OUT A DATE FOR A CHECK OR A LITTLE CALCULATOR TO HELP FIGURE AN AMOUNT YOU CAN INSTANTLY CALL UP A QUICK REPORT ON YOUR PAYMENT HISTORY TO ANY PAYEE RIGHT FROM THE REGISTER INVESTMENT TRACKING HAS BEEN BEEFED UP SUBSTANTIALLY WITH A MULTITUDE OF NEW REPORTS AND GRAPHS FOR VIEWING PORTFOLIO PERFORMANCE IN DIFFERENT WAYS SETTING UP LOANS SUCH AS MORTGAGES HAS BEEN MADE MUCH EASIER QUICKEN CONTINUES TO SPORT TWO EXISTING FEATURES I LIKE FOR SAVING TIME ANY PAYMENT CAN BE SENT ELECTRONICALLY FOR A SMALL FEE THROUGH THE CHECKFREE BILLPAYING SERVICE WITHOUT USING ANY OTHER PIECE OF SOFTWARE THAT SPARES YOU THE PRINTING AND MAILING OF CHECKS AND IF YOU USE A SPECIAL QUICKEN VISA CARD INTUIT WILL SEND YOUR MONTHLY STATEMENT VIA MODEM OR DISK AND QUICKEN SIMPLY SUCKS ALL THE DETAILS INTO YOUR ELECTRONIC FILE AUTOMATICALLY IT COSTS 3 OR 450 A MONTH FOR THIS SERVICE BUT IT SAVES A TREMENDOUS AMOUNT OF TYPING TIME SIMPLY MONEY INTRODUCES ITS OWN NEW USER INTERFACE DRAG AND DROP ICONS ITS MAIN SCREEN IS SEPARATED INTO THREE SECTIONS INCOME ACCOUNTS AND PAYEES EACH SECTION CONTAINS ICONS OR SMALL GRAPHICS REPRESENTING INCOME SOURCES THE VARIOUS ACCOUNTS INTO WHICH THAT INCOME FLOWS AND THE VARIOUS PEOPLE AND COMPANIES TO WHICH MONEY IS PAID REGULARLY FROM THOSE ACCOUNTS TO ENTER A TRANSACTION YOU USE THE MOUSE TO DRAG ONE OF THE ICONS ONTO ANOTHER FOR INSTANCE A PAYCHECK WOULD BE DEPOSITED BY DRAGGING A SALARY ICON ONTO A CHECKING ACCOUNT ICON THIS METHOD LIKELY WILL WORK WELL FOR VISUALLY ORIENTED USERS AND MASTERS OF THE MOUSE BUT FOR OTHERS IT COULD BE CONFUSING THE PROGRAM'S OTHER UNUSUAL FEATURE IS POPUP FINANCIAL ADVICE THAT APPEARS AS YOU WORK THESE TIPS ARE SUPPLIED BY KIPLINGER THE PERSONALFINANCE PUBLISHER AND THEY WILL HELP MANY PEOPLE BUT I FOUND SOME OF THEM IRRITATING AND OBVIOUS FOR INSTANCE WHEN I DELIBERATELY RECORDED A HUGE GROCERY CHECK THE PROGRAM NOTED THAT IT EXCEEDED MY GROCERY BUDGET AND SUGGESTED I DEFER IT A USELESS TIP SINCE I PRESUMABLY HAD ALREADY SPENT IT SIMPLY MONEY MAKES IT A BIT EASIER THAN QUICKEN TO SET UP ACCOUNTS AND IT HAS A NICE FEATURE THAT CONSTANTLY UPDATES THE VALUE OF YOUR HOUSE AS AN ASSET AS YOU ENTER HOME IMPROVEMENTS BUT I PREFERRED QUICKEN'S LATEST GRAPHING REPORTING AND INVESTMENT TRACKING SECTIONS AND SIMPLY MONEY LACKS DIRECT LINKS TO AN ELECTRONIC BILLPAYING SERVICE OR CREDIT CARD THE PROGRAM ALSO FAILED TO PRINT REPORTS PROPERLY ON MY SETUP AND COULDN'T IMPORT QUICKEN DATA CORRECTLY MAKING IT TOUGH TO SWITCH FROM QUICKEN WHAT'S MORE THE 695 PRICE IS A LITTLE DECEPTIVE COMPUTER ASSOCIATES HOPES TO COLLECT MUCH MORE OVER TIME FROM SIMPLY MONEY USERS BY SELLING THEM SPECIAL CHECKS THAT CAN BE PRINTED BY THEIR COMPUTERS UPGRADES TO THE PROGRAM AND A PLANNED FAMILY OF OTHER PROGRAMS INTUIT ALSO MAKES MONEY ON SUCH THINGS OF COURSE BUT IT ISN'T CLAIMING TO BE HANDING OUT ITS SOFTWARE FOR FREE AS SIMPLY MONEY'S MARKETERS DO NEVERTHELESS COMPUTER ASSOCIATES HAS PRODUCED A DECENT COMPETITOR AND PLANS AN IMPROVED VERSION BY YEAR'S END THAT KIND OF COMPETITION IS GOOD FOR ALL COMPUTER USERS 9309090057 930909 CREDIT RATINGS MBNA CORP NEWARK DEL STANDARD & POOR'S CORP RAISED ITS DEBT RATING FOR THIS CREDITCARD COMPANY CITING ITS QUALITY ASSET LEVEL AND STRONG MARKET POSITION ABOUT 372 MILLION IN DEBT IS AFFECTED S&P ALSO SAID THAT MBNA'S UPGRADE STEMS FROM AN IMPROVED FUNDING STRUCTURE AND STRONG CREDITCARD PORTFOLIOS COMPARED WITH PEER COMPANIES S&P RAISED MBNA'S SENIOR DEBT RATING TO TRIPLEBPLUS FROM TRIPLEB AND SUBORDINATED DEBT TO TRIPLEB FROM TRIPLEBMINUS WOOLWORTH CORP NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT PLACED THIS RETAILER'S A1 LONGTERM DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE CITING WOOLWORTH'S DIFFICULTIES IN MAINTAINING SALES AND EARNINGS MOMENTUM ABOUT 265 MILLION OF THE COMPANY'S DEBT IS AFFECTED MOODY'S SAID THE RATINGS AGENCY SAID IT WAS ALSO CONCERNED ABOUT WOOLWORTH'S NEED TO SUBSTANTIALLY MARK DOWN MERCHANDISE DURING THE SECOND QUARTER WOOLWORTH WHICH OPERATES MORE THAN 9200 SPECIALTY AND GENERAL MERCHANDISE STORES COULDN'T BE REACHED FOR A COMMENT 9309090056 930909 ADVERTISING CAMPBELL SHIFTS FAMILIAR SLOGAN TO BACK BURNER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEVER UNDERESTIMATE THE POWER OF YOUR EXISTING SLOGAN IN A RISKY MOVE CAMPBELL SOUP CO IS SHOVING ITS FAMILIAR M'M M'M GOOD TAGLINE TO THE BACK BURNER IN FAVOR OF THE NEW MOUTHFUL NEVER UNDERESTIMATE THE POWER OF SOUP SOME MARKETING CONSULTANTS SAY IT IS A MISTAKE TO DEEMPHASIZE THE INSTANTLY RECOGNIZABLE M'M M'M GOOD AND PREDICT THAT THE NEW CAMPAIGN WILL BE SHORTLIVED BUT CAMPBELL SAYS THAT ITS NEW MOTTO FARED BETTER IN CONSUMER TESTS THAN ANY OTHER CAMPBELL COMMERCIAL IN YEARS AND THAT THE NEW SPOTS WILL PLAY A KEY ROLE IN ITS STRATEGY OF BUILDING SOUP CONSUMPTION YEARROUND FOR CAMPBELL JUICING UP THE STAGNANT 2 BILLION SOUP BUSINESS WITH A NEW MARKETING BLITZ IS CRITICAL IF SOUP DOESN'T GROW THE COMPANY DOESN'T GROW SAYS NOMI GHEZ A GOLDMAN SACHS & CO FOOD ANALYST SOUP SLURPING WHILE CHEAP AND NUTRITIOUS DOESN'T FIT COMFORTABLY INTO TODAY'S FOODGRAZING PATTERNS SOUP IS HARD TO EAT BEHIND THE WHEEL OF A CAR THE CHALLENGE TO THE COMPANY IS TO MAKE SOUP RELEVANT TO TODAY'S LIFESTYLE SAYS MS GHEZ THE POWER OF SOUP CAMPAIGN WHICH IS DESIGNED TO MEET THAT CHALLENGE WILL BREAK IN FORCE AT THE END OF THE MONTH IT IS THE FIRST PIECE OF WORK FOR CAMPBELL'S REDANDWHITE BRANDS BY OMNICOM GROUP'S BBDO NEW YORK SINCE IT WAS HIRED IN JUNE BY THE NEW HEAD OF CAMPBELL'S SOUP BUSINESS MARTY THRASHER THE SOUP BUSINESS IS AN ESTIMATED 45 MILLIONAYEAR ACCOUNT BUT CAMPBELL WON'T REVEAL HOW MUCH IS BEING SPENT TO SHOW OFF ITS NEW SLOGAN AND INAUGURATE THE SOUP SEASON OTHER THAN TO HINT THAT IT WILL BE MASSIVE YOU WILL HAVE TO TRY NOT TO SEE THIS ADVERTISING SAYS A SPOKESMAN THE ADS WILL RUN ON NETWORK TELEVISION AND IN MAJOR MAGAZINES IN A RECENT INTERVIEW DAVID W JOHNSON CAMPBELL PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY PLANNED TO INCREASE ITS MARKETING BUDGET MORE THAN 10 THIS YEAR SOME CRITICS SAY A GOOD CHUNK OF THAT SPENDING MAY BE MISGUIDED PETER J HARLEMAN EXECUTIVE VICE PRESIDENT OF THE MARKETING CONSULTING FIRM LANDOR ASSOCIATES IS HIGHLY CRITICAL OF THE NEVER UNDERESTIMATE THE POWER OF SOUP TAGLINE THIS IS A MISTAKE SAYS MR HARLEMAN I PREDICT YOU WON'T SEE IT LAST VERY LONG INSTEAD MR HARLEMAN SAYS CAMPBELL SHOULD FIND A WAY TO FRESHEN ITS TREMENDOUSLY POWERFUL M'M M'M GOOD SLOGAN HE SAYS COMPANIES OFTEN TIRE OF THEIR MARKETING CAMPAIGNS BEFORE THE PUBLIC DOES COMPANIES HAVE TO LIVE WITH THINGS FROM MINUTE TO MINUTE BUT THE PUBLIC HAS MUCH MORE STAYING POWER HE SAYS CAMPBELL INSISTS THAT M'M M'M GOOD WHICH FIRST AIRED ON CAMPBELL RADIO SPOTS IN THE 1930S ISN'T BEING REJECTED WE ARE NOT DROPPING IT A CAMPBELL SPOKESMAN SAYS BUT HE ADDS THAT FOR THE TIME BEING IT DOESN'T MAKE SENSE TO HAVE TWO TAGLINES OUR MAIN EMPHASIS WILL BE ON THIS NEW CAMPAIGN HE SAYS THE OLD SLOGAN ALONG WITH THE CHERUBIC CAMPBELL'S KIDS WILL BE USED IN A LIMITED FASHION GOING FORWARD SOME MARKETING CONSULTANTS APPLAUD THE NEW CAMPAIGN SAYING IT STRIKES JUST THE RIGHT NOTE FOR BUDGET AND HEALTHCONSCIOUS SHOPPERS IT'S A BRILLIANT SLOGAN SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J SHAPIRO & ASSOCIATES A CHICAGO MARKET RESEARCH FIRM IN GOOD TIMES YOU ADVERTISE THE TASTE OF SOUP IN BAD TIMES YOU NEVER UNDERESTIMATE THE POWER OF SOUP TO HELP FEED YOUR FAMILY AND MANAGE YOUR FOOD BUDGET MR ROSENBAUM SAYS WILLIAM FINNIE A CONSULTANT AND MARKETING PROFESSOR AT WASHINGTON UNIVERSITY IN ST LOUIS SAYS THAT WHILE THE NEW SLOGAN LACKS THE EMOTIONAL TUG OF M'M M'M GOOD IT IS BETTER SUITED TO THE TIMES TALKING ABOUT THE POWER OF SOUP ALLOWS YOU TO GET INTO ITS SPECIFIC PRODUCT ATTRIBUTES AND BENEFITS HE SAYS THE WORLD IS MOVING AWAY FROM IMAGERY TOWARD VALUE THIS IS CONSISTENT WITH CONSUMER TRENDS IN THE 1990S CAMPBELL HAS A SECOND MAJOR ADVERTISING BLITZ PLANNED FOR LATER IN THE SOUP SEASON NEXT YEAR MARKS THE COMPANY'S 125TH ANNIVERSARY THE COMPANY PLANS A 10 MILLION CAMPAIGN AND PROMOTION FOR ITS BIRTHDAY CAMPBELL'S LARGEST SINGLE PROMOTION EVER THE ADS WILL KICK OFF ON NEW YEAR'S EVE AT MIDNIGHT WITH A COUNTDOWN FEATURING A PLUNGING SOUP CAN A LA THE PLUNGING BALL IN TIMES SQUARE THE COUNTDOWN WILL CONCLUDE WITH AN ANNOUNCER WISHING VIEWERS A SOUPER NEW YEAR ACCOUNTS S&A RESTAURANT CORP THE DALLASBASED PARENT OF THE BENNIGAN'S AND STEAK & ALE RESTAURANT CHAINS MOVED ITS ESTIMATED 20 MILLION AD ACCOUNT FROM ROTANDO LERCH & IAFELIECE OF STAMFORD CONN TO TEMERLIN MCCLAIN THE DALLAS UNIT OF BOZELL JACOBS KENYON & ECKHARDT CELESTIAL SEASONINGS THE BOULDER COLO HERBALTEA MAKER TAPPED CHICAGO AGENCY TATHAM EURO RSCG FOR ITS ESTIMATED 6 MILLION ACCOUNT PREVIOUSLY AT ALLY & GARGANO NEW YORK AFTER A REVIEW OF EIGHT AGENCIES 9309090055 930909 WHO'S NEWS POPE & TALBOT INC POPE & TALBOT INC PORTLAND ORE ROBERT STEVENS MILLER JR WAS ELECTED A DIRECTOR OF THIS FORESTPRODUCTS COMPANY RAISING BOARD MEMBERSHIP TO NINE A VICE CHAIRMAN OF CHRYSLER CORP FROM 1990 TO 1992 MR MILLER IS CURRENTLY A DIRECTOR AND TREASURER OF MOORE MILL & LUMBER CO BANDEN ORE 9309090054 930909 INTERNATIONAL ISRAEL JORDAN TENTATIVELY SET TREATY AGENDA PALESTINIANS JEWISH STATE STILL SEEKING LANGUAGE ACCEPTABLE FOR ACCORD BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ISRAEL AND JORDAN REACHED TENTATIVE AGREEMENT ON AN AGENDA FOR NEGOTIATING A PEACE TREATY AS PALESTINIANS AND ISRAELIS CONTINUED SEEKING ACCEPTABLE LANGUAGE ON MUTUAL RECOGNITION AND AN END TO THEIR LETHAL 30YEAR DISPUTE ISRAELI AND JORDANIAN OFFICIALS SAID THEY IRONED OUT ALMOST ALL THE WRINKLES BY LATE YESTERDAY CONCERNING SUBJECTS THEIR PEACE TALKS WOULD COVER INCLUDING SUCH ISSUES AS LAND WATER AND REFUGEES BUT A FORMAL ANNOUNCEMENT THAT THEY HAVE AGREED ON THIS FRAMEWORK WON'T BE MADE UNTIL AFTER ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION COMPLETE THEIR ACCORD THAT MEANS THE ACTUAL ANNOUNCEMENT IS LIKELY TO BE POSTPONED UNTIL THE NEXT ROUND OF MIDEAST PEACE TALKS IN WASHINGTON FOR WHICH A STARTING DATE HASN'T BEEN SET THE CURRENT ROUND IS SET TO END TODAY PROGRESS ON THE JORDANIANISRAELI FRONT DOESN'T MEAN A PEACE TREATY BETWEEN THE TWO NATIONS IS IMMINENT MIDEAST DIPLOMATS SAID WHILE THESE DIPLOMATS DON'T EXPECT MAJOR PROBLEMS OVER LAND AND MUTUAL COOPERATION IN SUCH AREAS AS TRADE TOURISM AND WATER RESOURCES OFFICIALS FROM BOTH NATIONS SAY THERE ARE BIG PROBLEMS IN RESOLVING CLAIMS BY REFUGEES OF THE 15 MILLION PALESTINIAN REFUGEES IN JORDAN SOME HAVE RESIDED THERE SINCE THEY FLED THEIR HOMES IN WHAT IS NOW ISRAEL DURING THE 1948 ARABISRAELI WAR MOST NOW HOLD JORDANIAN PASSPORTS AND IT IS BELIEVED THAT MANY WOULDN'T WANT TO RETURN TO THEIR OLD HOMES HOWEVER EXPERTS SAY MANY OF THESE PEOPLE ARE LIKELY TO DEMAND COMPENSATION FROM ISRAEL PRACTICALLY SPEAKING MOST OF THESE PEOPLE WILL NOT GO BACK SAID AN ARAB DIPLOMAT WE'RE NOT SAYING THEY SHOULD WE'RE SAYING A POLITICAL SOLUTION NEEDS TO BE FOUND THE AGREEMENT ON A FRAMEWORK FOR TALKS SOUNDS LIKE A SMALL STEP BUT IT IS AN IMPORTANT BREAKTHROUGH IN THE NEGOTIATIONS FOR MONTHS ISRAEL AND JORDAN HAD BEEN UNABLE TO COMPLETE THEIR AGENDA AGREEMENT NOW WHEN THE TWO SIDES RETURN TO THE NEGOTIATING TABLE THEY WILL FORM WORKING GROUPS TO TACKLE ISSUES THAT NEED TO BE RESOLVED TO ACHIEVE PEACE IF A PEACE TREATY IS PRODUCED AND MOST EXPERTS BELIEVE IT WILL BE IT WOULD BE THE FIRST BETWEEN ISRAEL AND AN ARAB STATE SINCE THE JEWISH STATE AND EGYPT SIGNED AN ACCORD IN 1979 SOME MIDEAST ANALYSTS BELIEVE JORDAN'S KING HUSSEIN FELT MORE COMFORTABLE ABOUT MAKING PROGRESS WITH ISRAEL AFTER SECRET TALKS IN NORWAY BETWEEN ISRAEL AND THE PLO PRODUCED A HISTORIC ACCORD THAT AGREEMENT GIVES IMMEDIATE AUTONOMY TO PALESTINIANS WHO LIVE IN GAZA AND THE WEST BANK TOWN OF JERICHO AND SHOULD LEAD TO AUTONOMY FOR PALESTINIANS LIVING ELSEWHERE IN THE OCCUPIED WEST BANK PLO CHAIRMAN YASSER ARAFAT WAS SET TO BEGIN MEETING IN TUNIS LATE YESTERDAY WITH HIS ORGANIZATION'S EXECUTIVE COMMITTEE TO TRY TO WIN APPROVAL OF BOTH HIS PEACE DEAL WITH ISRAEL AND LANGUAGE THAT WOULD LEAD TO MUTUAL RECOGNITION BETWEEN THE PLO AND ISRAEL MIDEAST EXPERTS EXPECT MR ARAFAT TO PREVAIL FOLLOWING WHAT IS LIKELY TO BE A STORMY SESSION INVOLVING STRONG OPPOSITION BY RADICAL PLO FACTIONS PRESIDENT CLINTON HAS OFFERED TO HOST A WHITE HOUSE SIGNING NEXT MONDAY OF THE DECLARATION OF PRINCIPLES THAT OUTLINES THE AUTONOMY PLAN BUT NEITHER US NOR MIDEAST OFFICIALS WERE SURE LATE YESTERDAY WHETHER ISRAELIS AND PALESTINIANS COULD AGREE ON THE DETAILS IN TIME THE JEWISH HIGH HOLY DAYS BEGIN NEXT WEDNESDAY AT SUNDOWN RULING OUT A SIGNING LATER NEXT WEEK 9309090053 930909 INTERNATIONAL CLINTON DEFERS TO CONGRESS ON BOSNIA ROLE BY THOMAS E RICKS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BOSNIA COLLIDED WITH SOMALIA IN THE US CAPITAL RAISING QUESTIONS ABOUT AMERICAN COMMITMENTS TO PEACEKEEPING MISSIONS IN BOTH COUNTRIES WITH A REBELLION SUDDENLY BREAKING OUT ON CAPITOL HILL OVER THE COST AND HAZY RATIONALE OF THE US MILITARY INVOLVEMENT IN SOMALIA PRESIDENT CLINTON SAID HE WOULD SEEK CONGRESSIONAL APPROVAL BEFORE SENDING US TROOPS TO ACT AS PEACEKEEPERS IN BOSNIA IN AN EFFORT TO ASSUAGE CONGRESSIONAL CONCERNS ADMINISTRATION OFFICIALS SAID THAT ANY US PEACEKEEPING MISSION IN BOSNIA WOULD BE UNDER THE COMMAND OF THE NORTH ATLANTIC TREATY ORGANIZATION RATHER THAN THE AUSPICES OF THE UNITED NATIONS AS IN SOMALIA GUARANTEEING MORE US MILITARY CONTROL A SENIOR OFFICIAL ALSO SAID THAT THE ADMINISTRATION WOULD BE WILLING TO CONSIDER A TIME LIMIT SUCH AS A YEAR ON THE US COMMITMENT TO BOSNIA WITH CONGRESSIONAL REAUTHORIZATION A POSSIBILITY AFTER THAT IF WE CAN GET THE CONGRESS TO SUPPORT IT THEN I THINK WE SHOULD PARTICIPATE MR CLINTON TOLD REPORTERS AFTER HIS MEETING WITH BOSNIAN PRESIDENT ALIJA IZETBEGOVIC BUT THAT SUPPORT IS BY NO MEANS GUARANTEED WHILE DISCUSSING THE 1994 DEFENSE SPENDING BILL LAST NIGHT THE SENATE ERUPTED INTO A LENGTHY DEBATE OVER AN AMENDMENT THAT EFFECTIVELY WOULD REQUIRE THE US TO WITHDRAW FROM SOMALIA BY ABOUT THE END OF NEXT MONTH UNLESS CONGRESS SPECIFICALLY AUTHORIZES CONTINUING THE MISSION THE TIME HAS COME FOR A HARDNOSED REASSESSMENT OF THE MISSION TO SOMALIA SAID SEN ROBERT BYRD D WVA THE AMENDMENT'S SPONSOR AT SOME POINT WE HAVE TO CALL THE MISSION OVER DONE COMPLETED US OFFICIALS MEANWHILE INSISTED THAT THE US WAS COMMITTED TO STICKING WITH BOTH INITIATIVES THEY HAD HOPED TO POSTPONE ANY DEBATE ON BOSNIAN PEACEKEEPING UNTIL AFTER A PEACE SETTLEMENT WAS SIGNED BUT THE SUDDEN OPPOSITION TO THE TROUBLED SOMALIA MISSION WHERE FOUR US SOLDIERS WERE KILLED LAST MONTH HAS APPARENTLY FORCED THEIR HANDS US OFFICIALS ESTIMATE THAT A NATO PEACEKEEPING FORCE IN BOSNIA WOULD LIKELY NUMBER AROUND 55000 TROOPS ABOUT HALF FROM THE US AND WOULD ALMOST CERTAINLY BE FRAUGHT WITH DANGERS FOR US TROOPS THE SENATE DEBATE WAS AS MUCH ABOUT BOSNIA AS IT WAS ABOUT SOMALIA SEN PAUL SIMON D ILL WHO OPPOSED THE BYRD PROPOSAL SAID THAT FOR THE US TO HIGHTAIL OUT OF SOMALIA AT A TIME IT IS CONTEMPLATING GOING INTO BOSNIA WOULD SEND THE MESSAGE THAT THE US IS FRIGHTENED EASILY THE CREDIBILITY OF OUR COUNTRY REALLY IS AT STAKE HE WARNED BUT SUPPORT FOR THE BYRD WITHDRAWAL PROPOSAL WAS SURPRISINGLY WIDESPREAD REFLECTING GROWING CONCERN IN CONGRESS ABOUT THE OPENENDED NATURE OF ALL PEACEKEEPING MISSIONS AND THEIR HIGH FINANCIAL COST ON TOP OF THAT CONGRESSIONAL CONSERVATIVES GENERALLY ARE WARY OF THE CLINTON ADMINISTRATION'S COMMITMENT TO MULTILATERAL PEACEKEEPING EFFORTS ESPECIALLY ONES WHICH PLACE US TROOPS UNDER FOREIGN COMMAND SEN JOHN MCCAIN R ARIZ FOR EXAMPLE REFERRED IN THE DEBATE TO THAT AS A BIZARRE SCENARIO CONSERVATIVES ALSO ARE PROVOKED BECAUSE THE ADMINISTRATION HAS NOMINATED MORTON HALPERIN A LIBERAL DEFENSE INTELLECTUAL TO OVERSEE THE PENTAGON'S PEACEKEEPING EFFORTS REPUBLICANS PROMISE THAT MR HALPERIN FACES A TOUGH CONFIRMATION HEARING OVER SOME OF HIS PAST POSITIONS AND OVER THE ADMINISTRATION'S HANDLING SO FAR OF PEACEKEEPING 9309090052 930909 INTERNATIONAL BRIEF GEORGE WIMPEY PLC STRONG UK HOUSING SALES HELP FIRM RETURN TO PROFIT UK CONSTRUCTION GROUP GEORGE WIMPEY PLC SAID IT EDGED BACK TO A PROFIT DURING THE FIRST HALF OF 1993 FUELED BY A 59 JUMP IN DOMESTIC HOUSING SALES THE PRETAX PROFIT OF 11 MILLION 17 MILLION WAS BETTER THAN MARKET FORECASTS FOR A LOSS OF ABOUT 5 MILLION THE YEARAGO FIRSTHALF LOSS WAS 246 MILLION THE COMPANY WITH OPERATIONS IN THE US CANADA FRANCE AUSTRALIA AND THE MIDDLE EAST CALLED THE EARNINGS A FIRST SIGN OF RECOVERY AND SAID HIGHER FIRSTHALF HOME SALES WILL RESULT IN PROFIT FOR THE REST OF THE YEAR TOTAL FIRSTHALF SALES FELL 42 TO 7002 MILLION THE COMPANY'S DEBT DROPPED 32 TO 158 MILLION WIMPEY SHARES FELL FIVE PENCE TO 184 PENCE IN LONDON TRADING YESTERDAY DESPITE THE IMPROVED RESULTS TRADERS BLAME THE DECLNE ON PROFITTAKING AFTER A RUN UP PRIOR TO THE EARNINGS ANNOUNCEMENT 9309090051 930909 WHO'S NEWS IMO INDUSTRIES INC IMO INDUSTRIES INC LAWRENCEVILLE NJ DONALD K FARRAR WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF INSTRUMENTS CONTROLS AND POWER PRODUCTS MR FARRAR 55 YEARS OLD SUCCEEDS WJ HOLCOMBE 67 WHO WILL CONTINUE AS CHAIRMAN OF IMO INDUSTRIES MR FARRAR WAS PRESIDENT OF AVCO CORP GREENWICH CONN PRIOR TO ITS MERGER WITH TEXTRON INC IN 1985 MR FARRAR RECENTLY HAS BEEN INVOLVED IN PRIVATE INVESTING 9309090050 930909 INTERNATIONAL BRIEF VOLKSWAGEN AG CONCERN WILL PROBABLY' PAY '93 DIVIDEND CHAIRMAN SAYS GERMANY'S VOLKSWAGEN AG WILL PROBABLY PAY A 1993 DIVIDEND CHAIRMAN FERDINAND PIECH SAID IN AN INTERVIEW ON GERMAN TELEVISION MR PIECH'S REMARKS YESTERDAY WERE A SLIGHT VARIATION OF REMARKS HE MADE TUESDAY AT THE FRANKFURT INTERNATIONAL AUTO SHOW WHEN HE SAID HE HOPED VW WOULD BE ABLE TO PAY A 1993 DIVIDEND IN 1992 THE GERMAN AUTO MAKER SLASHED ITS DIVIDEND TO TWO MARKS 124 FROM 11 MARKS IN 1991 AT THE AUTO SHOW MR PIECH ALSO BACKED OFF FROM EARLIER FORECASTS THAT THE VW GROUP WOULD BREAK EVEN IN 1993 INSTEAD HE SAID THE PARENT COMPANY WOULD SHOW A PROFIT IN 1993 HE DECLINED TO COMMENT ON THE PROSPECTS FOR THE VW GROUP AS A WHOLE IN THE FIRST HALF OF THE YEAR VW POSTED NET LOSSES OF 16 BILLION MARKS 992 MILLION AND IT WAS DISCLOSED SATURDAY THAT VW'S SEAT SUBSIDIARY IN SPAIN MAY REQUIRE A BAILOUT OF AS MUCH AS ONE BILLION MARKS IN 1993 9309090049 930909 WHO'S NEWS TRAVELERS CORP TRAVELERS CORP HARTFORD CONN STEPHEN H MATHESON 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT FOR MANAGEDCARE OPERATIONS AT THIS FINANCIAL SERVICES AND HEALTHCARE COMPANY A NEW POSITION HE ALSO WILL SERVE AS CHAIRMAN OF THE TRAVELERS HEALTH CO WHICH MANAGES TRAVELERS CORP'S HEALTHCARE OPERATIONS MR MATHESON HAS BEEN PRESIDENT OF CIGNA HEALTHPLAN A UNIT OF THE CIGNA CORP IN PHILADELPHIA 9309090048 930909 INTERNATIONAL BRIEF TOTAL SA FRENCH OIL COMPANY'S PROFIT DROPPED 5 IN THE FIRST HALF FRENCH OIL COMPANY TOTAL SA SAID ITS FIRSTHALF GROUP PROFIT FELL 5 BECAUSE OF A TEMPORARY DECLINE IN HYDROCARBON PRODUCTION AND THE DEPRESSED STATE OF THE CHEMICAL INDUSTRY FIRSTHALF EARNINGS TOTALED 181 BILLION FRANCS 3194 MILLION DOWN FROM 191 BILLION A YEAR EARLIER PERSHARE EARNINGS DROPPED TO 84 FRANCS 148 FROM 9 FRANCS PARTLY REFLECTING DILUTION FOLLOWING CAPITAL INCREASES SALES SLIPPED 13 TO 6785 BILLION FRANCS THE FIRSTHALF FIGURES WERE IN LINE WITH EXPECTATIONS OPERATING PROFIT ROSE 27 TO 349 BILLION FRANCS CONTRASTING WITH CHAIRMAN SERGE TCHURUK'S FORECAST EARLIER THIS YEAR THAT FIRSTHALF OPERATING PROFIT WOULD BE STEADY AT BEST MR TCHURUK DECLINED TO MAKE A PROJECTION FOR TOTAL'S 1993 FULLYEAR EARNINGS NOTING THAT A FLUCTUATION OF 10 IN THE VALUE OF THE DOLLAR HAS AN IMPACT OF 700 MILLION FRANCS ON ANNUAL EARNINGS 9309090047 930909 BUSINESS BRIEF PSI RESOURCES INC IPALCO'S DEFEAT LAST MONTH IN PROXY VOTE IS CONFIRMED PSI RESOURCES INC PLAINFIELD IND SAID ITS SLATE OF DIRECTOR NOMINEES DEFEATED THAT OF FAILED HOSTILE SUITOR IPALCO ENTERPRISES INC LAST MONTH BY A NEARLY 2TO1 RATIO IPALCO BASED IN INDIANAPOLIS DROPPED ITS HOSTILE 173 BILLION BID AUG 23 THE DAY OF PSI'S ANNUAL SHAREHOLDER MEETING AT THAT MEETING HOLDERS CAST THEIR BALLOTS EITHER FOR THE SLATE NOMINATED BY PSI MANAGEMENT WHICH FAVORED PSI'S PLANS TO EFFECT A FRIENDLY MERGER WITH CINCINNATI GAS & ELECTRIC CO OR FOR THE IPALCO SLATE WHICH IF ELECTED WOULD HAVE PUSHED FOR IPALCO'S RIVAL BID FOR PSI FORMAL COUNTING OF THE BALLOTS IN SUCH CONTESTED VOTES OFTEN TAKES MORE THAN A WEEK THE ELECTION INSPECTORS' REPORT STILL REMAINS TO BE CERTIFIED PSI NOTED THE ELECTION HAD ONCE BEEN EXPECTED TO BE CLOSE AT THE ANNUAL MEETING HOWEVER IPALCO SURPRISED THE PACKED MEETING BY ANNOUNCING THAT IT KNEW IT HAD FALLEN SHORT IN THE PROXY FIGHT LATER THAT DAY THE UTILITY WITHDREW ITS OFFER PSI IS NOW PRESSING AHEAD WITH ITS MERGER PLAN WITH CG&E 9309090046 930909 BUSINESS BRIEF FLUOR CORP COMPANY RECEIVES CONTRACTS FROM CHIRON FOR 2 PROJECTS FLUOR CORP SAID IT RECEIVED CONTRACTS FROM CHIRON CORP VALUED AT ABOUT 43 MILLION TO RENOVATE A PLANT IN PUERTO RICO AND TO BUILD A PLANT IN CALIFORNIA FLUOR AN ENGINEERING AND CONSTRUCTION COMPANY IN IRVINE CALIF SAID BOTH PROJECTS ARE SET FOR COMPLETION EARLY NEXT YEAR CHIRON IS A BIOTECHNOLOGY COMPANY IN EMERYVILLE CALIF THE RENOVATED PLANT 25 MILES EAST OF SAN JUAN WILL BE USED FOR PURIFICATION AND PACKAGING OF CHIRON'S BETASERON DRUG A TREATMENT FOR MULTIPLE SCLEROSIS FLUOR SAID THE SACRAMENTO CALIF PLANT WILL PRODUCE HUMAN GROWTH FACTORS A FAMILY OF PROTEINS THAT STIMULATE THE FORMATION OF BONE MUSCLE AND CONNECTIVE TISSUE SEPARATELY FLUOR SAID IT RECEIVED A CONTRACT FROM A MARTIN MARIETTA CORP DIVISION FOR ENGINEERING SERVICES AT 12 FEDERAL AVIATION ADMINISTRATION FACILITIES AROUND THE US THE INITIAL 2 1/2 YEAR CONTRACT IS VALUED AT 16 MILLION WITH TWO TWOYEAR OPTIONS VALUED AT ABOUT 50 MILLION FLUOR SAID 9309090045 930909 BUSINESS BRIEF MCDONNELL DOUGLAS CORP PRODUCTION OF APACHE LINE TO BE CUT BACK 40 BY 1995 MCDONNELL DOUGLAS CORP SAID THAT A SLOWDOWN IN DOMESTIC AND FOREIGN ORDERS WILL FORCE A 40 CUT IN PRODUCTION OF APACHE HELICOPTERS BY 1995 THE COMPANY ANNOUNCED PLANS TO SLOW PRODUCTION OF THE AH64 APACHES LATER THIS YEAR TO FOUR OF THE ATTACK HELICOPTERS A MONTH FROM THE CURRENT RATE OF FIVE A MONTH THE PRODUCTION RATE WILL DROP TO THREE A MONTH IN 1995 MCDONNELL DOUGLAS SAID THAT SOME JOBS WILL BE LOST AT THE HELICOPTER UNIT'S MESA ARIZ PLANT BUT IT SAID THE DETAILS OF THOSE CUTS STILL HAVEN'T BEEN FINALIZED THE MOVE EXPECTED BY SOME ANALYSTS IN LIGHT OF THE PENTAGON'S SHRINKING BUDGET IS INTENDED TO AVOID CLOSING THE APACHE LINE BEFORE WORK ON THE SOCALLED LONGBOW UPGRADE VERSION STEPS UP JUST A YEAR AGO MCDONNELL DOUGLAS ANNOUNCED PLANS TO SPIN OFF OR SELL ITS HELICOPTER UNIT WHICH HAD REVENUE OF ABOUT 750 MILLION BEFORE THE LATEST PENTAGON CUTBACKS BUT THOSE EFFORTS DIDN'T BEAR FRUIT 9309090044 930909 WHO'S NEWS GENSIA INC GENSIA INC SAN DIEGO HERBERT J CONRAD 60 YEARS OLD WAS NAMED A DIRECTOR OF THIS BIOPHARMACEUTICAL COMPANY INCREASING THE BOARD TO 11 MEMBERS THE VETERAN PHARMACEUTICAL EXECUTIVE RETIRED LAST MONTH AS A SENIOR VICE PRESIDENT OF HOFFMANNLA ROCHE INC A US AFFILIATE OF ROCHE HOLDING AG BASEL SWITZERLAND HE WAS ALSO PRESIDENT OF THE US AFFILIATE PHARMACEUTICALS DIVISION 9309090043 930909 SOME PEOPLE PLAN SOME PEOPLE PAN THE RISE OF PLANNERS WHILE FRANKLIN MAKES A MINT CRITICS THINK THE GIZMOS ARE MOSTLY A WASTE OF TIME BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL ROLAND WALLACE IS ADDICTED TO HIS LITTLE LEATHERBOUND PLANNER TWICE A DAY SINCE 1985 HE HAS PAINSTAKINGLY PLOTTED HIS LIFE EVERY MINUTE OF EVERY HOUR OF EVERY DAY ONTO ITS PAGES HE CALLS THIS TIME PRAYER IN SOLITUDE LEO FLOROS A CHICAGO PUBLICRELATIONS CONSULTANT WOULDN'T HAVE A PLANNER IF YOU GAVE HIM ONE I'M NOT ABOUT TO STRUCTURE MY DAY AND EVERY HOUR ON PAPER HE SAYS HE FINDS PLANNING FANATICS ANNOYING IT'S OVERKILL WITH SOME PEOPLE PLANNERS THOSE PORTABLE CALENDARS THAT BECAME THE RAGE IN THE MID1980S NOW BULGE FROM AN ESTIMATED 15 MILLION US POCKETS ELECTRONIC VERSIONS HAVE FOLLOWED AND PACK THOUSANDS OF BRIEFCASES AS PLANNERS HAVE PROLIFERATED SO HAVE PEOPLE'S PASSIONS ABOUT THEM SOME FEEL AS STRONGLY ABOUT THEIR PERSONAL ORGANIZERS AS THEY DO ABOUT THEIR BALL TEAMS SOME PEOPLE TAKE THEM EVERYWHERE GARY RIGBY A MERRILL LYNCH EMPLOYEE ADMITS TAKING HIS INTO THE SHOWER SOME THINK THE PLANNER RAGE IS A BIG WASTE OF TIME TIMESAVING TOOLS HAVEN'T INCREASED OUR LEISURE BUT INCREASED STRESS ARGUES JEREMY RIFKIN AUTHOR OF TIME WARS AND PRESIDENT OF THE FOUNDATION ON ECONOMIC TRENDS IN WASHINGTON WHATEVER THE CASE THE WORLD INDEED SEEMS TO HAVE DECAMPED INTO TWO GROUPS THOSE WHO PLAN ASSIDUOUSLY AND THOSE WHO PAN PLANNING AS THE REFUGE OF THE OBSESSIVE THE PLANNER CAMP IN TURN HAS SPLINTERED INTO A NUMBER OF LOOSE CONFEDERACIES THE BIG ONES ARE THE PAPER PLANNERS WHO SPEND A LOT OF TIME SQUABBLING OVER THE RELATIVE MERITS OF PARTICULAR MODELS DAY PLANNER MONTHINVIEW AND WEEKATAGLANCE AMONG OTHERS AND THEN THERE ARE THE ELECTRONICPLANNER PEOPLE WHO BUY DEVICES WITH NAMES LIKE WIZARD AND THE BOSS THE ELECTRONIC FOLK ARE GENERALLY COMPUTER OR GADGETJUNKIES THEY ARE PLANNINGMINDED BUT WOULDN'T BE CAUGHT DEAD WITH ANYTHING SO LOWTECH AS PEN AND PAPER THIS IS HOW IT USUALLY GOES WHEN THE ELECTRONIC GADGETEERS TALK ABOUT THEIR PAPER COMRADES THEY THE PAPER CROWD CAN'T TAKE ALL THEIR INFORMATION WITH THEM SCOFFS ADAM SATTLER PROUD OWNER OF A 122 ELECTRONIC DIGITAL DIARY WHOSE DIMINUTIVE ELECTRONIC BRAIN HOLDS 725 PHONE NUMBERS A CALENDAR OF DAILY APPOINTMENTS AND A LIST OF BUSINESS PROSPECTS THEY'D HAVE TO WALK AROUND WITH BRIEFCASES FULL OF FILES WELL BETTER THAT THAN WALKING AROUND CONSTANTLY SUSCEPTIBLE TO BATTERY FAILURE SAYS THOMAS YOUNG JR A FRANKLIN PAPER PLANNER DEVOTEE HE ALSO THROWS COLD WATER ON THE CLAIM THAT ELECTRONIC PLANNERS ARE FASTER AT RETRIEVING DATA MORE THAN ONCE HE SAYS HE HAS BLOWN AWAY ELECTRONIC ORGANIZERS WITH HIS FRANKLIN AND A LITTLE THUMB DEXTERITY I'VE HAD PEOPLE PULL THEM OUT OF THEIR POCKET AND CHALLENGE ME SAYS MR YOUNG CHAIRMAN OF YOUNG ELECTRIC SIGN CO IN SALT LAKE CITY BUT I CAN FIND DATA QUICKER THAN THEY CAN JUST BY FLIPPING A PAGE WHAT IS SOCIETY TO MAKE OF THIS SOME SEE PLANNERS AS MODERNDAY SECURITY BLANKETS A LOT OF PEOPLE HAVE BOUGHT INTO THE IDEA THAT SOMEHOW IF THEY GET ORGANIZED THEY CAN DO EVERYTHING SAYS MERRILL DOUGLASS PRESIDENT OF TIME MANAGEMENT CENTER A CONSULTING FIRM IN MARIETTA GA INSTEAD THE TIME SAVED USING A PLANNER IS OFTEN SPENT SURPRISE UPDATING THE PLANNER HE ADDS EVEN PEOPLE WHO HELPED INVENT THE PLANNER CRAZE FIND IT A BIT WORRISOME THERE'S AN EMOTIONAL COMMITMENT THAT QUITE FRANKLY SCARES ME SAYS HYRUM SMITH FOUNDER AND CHIEF EXECUTIVE OFFICER OF FRANKLIN QUEST CO MAKER OF THE FRANKLIN DAY PLANNER AFTER ALL HE SAYS YOU COULD DO THIS WITH TWO PIECES OF PAPER AND A MONTHLY CALENDAR MR SMITH OF COURSE HOPES THAT YOU WON'T FRANKLIN JUST WENT PUBLIC IN JUNE AND SALES HAVE BEEN GROWING SHARPLY FOR THE PAST YEAR AFTER REACHING 1208 MILLION IN FISCAL YEAR 1992 HIS COMPANY PEDDLES NOT ONLY PLANNERS BUT A WHOLE TIMEMANAGEMENT REGIMEN MODELED OSTENSIBLY ON THE PRACTICES AND PHILOSOPHIES OF BENJAMIN FRANKLIN THE COMPANY'S 195APERSON SEMINARS ARE ROUTINELY PACKED AND A FRANKLIN CATALOG INCLUDES A 3995 PLANNING KIT ANCHORED BY A HARDCOVER TOME TITLED GAINING CONTROL IT PURPORTS NOT ONLY TO HELP PEOPLE PLAN BUT TO STRAIGHTEN OUT THEIR FAMILY LIVES AS WELL FRANKLIN IS CLEARLY ONTO SOMETHING FOR MANY THE PLANNER PHENOMENON ISN'T MERELY ABOUT ORGANIZATION AMONG OTHER THINGS CARRYING THE RIGHT PLANNER CONNOTES PEER SOLIDARITY AND EVEN POSITION ON THE CORPORATE LADDER MR WALLACE A DOW CHEMICAL CO PERSONNEL TRAINER SAYS HE CAN EASILY SPOT HIS DOW CHEMICAL COLLEAGUES AT A LOCAL SHOPPING MALL BECAUSE THEY INVARIABLY HAVE FRANKLIN PLANNERS STICKING OUT OF THEIR POCKETS VIRTUALLY EVERY EMPLOYEE AT DOW CHEMICAL'S MIDLAND MICH OFFICE CARRIES A FRANKLIN AND THOSE WHO DON'T OFTEN FEEL LEFT OUT THERE'S A SUBTLE PEER PRESSURE TO GET ONE MR WALLACE SAYS AT NIKE INC'S HEADQUARTERS IN BEAVERTON ORE EMPLOYEES TEND TO FOLLOW THE LEADER WHEN CHOOSING A PERSONAL ORGANIZER OBSERVES HELEN ROCKEY A GENERAL MANAGER EXAMPLES SALES REPRESENTATIVES LEAN TOWARD A BRAND CALLED TIME SYSTEMS TO TRACK ACCOUNTS AND SCHEDULES MARKETING TYPES APPRECIATE THE TRIM FILOFAX OR COMPACT DAY RUNNER BECAUSE THEY ARE LIGHT AND EASY TO CARRY EMPLOYEES IN PRODUCTION DISTRIBUTION AND WAREHOUSING OPERATIONS PREFER THE EXPANSIVE FRANKLIN WITH ITS PROJECT PAGES AND MASTER TASK LISTS I HAVEN'T FOUND THE SYSTEM THAT IS PERFECT ENOUGH TO REPLACE THE FRANKLIN SAYS ROBERT KREINBERG NIKE'S DIRECTOR OF OPERATIONS POPPYCOCK SAYS MICHAEL CALDWELL DIRECTOR OF SALES PLANNING AND STRATEGY WITH FRANKLIN IF YOU WANT TO LOOK SOMETHING UP YOU DID IN THE PAST YOU HAD TO REMEMBER THE DAY WAS IT JUNE OR JULY WITH TIME SYSTEMS YOU FILE BY SUBJECT MATTER OR PERSON SO IT'S EASIER TO FIND INFORMATION THE PLANNER MYSTIQUE IS SIMPLY LOST ON MANY PEOPLE PATRICIA ALLEN A MEDIARELATIONS SPECIALIST AT NCR CORP IN DAYTON OHIO RECALLS ASKING A COWORKER FOR ADVICE ON HOW TO GET ORGANIZED THE REPLY DON'T YOU HAVE A FRANKLIN PLANNER IT'S THE LATEST THING MS ALLEN HAD NEVER HEARD OF A FRANKLIN PLANNER BUT A FEW MONTHS LATER NCR SENT HER TO A FRANKLIN PLANNER SEMINAR IT WAS BAFFLING ALL THE TALK ABOUT PRODUCTIVITY PYRAMIDS AND DAILY AFFIRMATIONS WAS A LITTLE TOO COSMIC SHE RECALLS IT'S SUPPOSED TO BE THIS HIGHER GOAL THAT YOU'RE REACHING FOR SAYS MS ALLEN AND ALL I CARE ABOUT IS ORGANIZING MY LIFE HERE AT WORK THE PLANNER DIVIDE EVEN RUNS THROUGH SOME FAMILIES DOW CHEMICAL'S MR WALLACE MAY BE WELL ORGANIZED BUT HE IS NO ROMANTIC HE GAVE HIS WIFE JANICE A PLANNER FOR HER LAST BIRTHDAY SHE SCRIBBLED IN IT FOR A FEW MONTHS THEN TOSSED IT ASIDE MY TIME IS VALUABLE AND I DIDN'T WANT TO SPEND IT THAT WAY SHE SAYS AND THEN THERE ARE PLANNER BACKSLIDERS JIM STARZYNSKI AN NBC TELEVISION ENGINEER IN NEW YORK NOT LONG AGO MOTHBALLED HIS ELECTRONIC WIZARD AFTER TIRING OF LUGGING IT AROUND THESE DAYS HE KEEPS TRACK OF HIS LIFE ON A 39CENT MEMO BOOK HE CARRIES IN HIS POCKET IT WORKS JUST FINE HE SAYS 9309090042 930909 WHAT'S NEWS WORLDWIDE ISRAEL AND JORDAN AGREED ON THE FRAMEWORK FOR A PEACE TREATY OFFICIALS FOR THE TWO NATIONS SAID THEY REACHED A TENTATIVE ACCORD ON THE SUBJECTS THEIR PEACE TALKS WOULD COVER INCLUDING SUCH ISSUES AS LAND WATER AND REFUGEES THE AGREEMENT WAS A MAJOR BREAKTHROUGH FOR THE TWO SIDES WHICH HAD BEEN UNABLE TO AGREE ON AN AGENDA DURING MONTHS OF NEGOTIATION MEANWHILE PALESTINIANS AND ISRAELIS CONTINUED TO SEEK ACCEPTABLE LANGUAGE ON MUTUAL RECOGNITION IN ISRAEL PEACE TALKS WERE OVERSHADOWED BY A CABINET CRISIS AFTER THE SUPREME COURT ORDERED PRIME MINISTER RABIN TO FIRE HIS INTERIOR MINISTER WHO IS UNDER INVESTIGATION FOR CORRUPTION PRESIDENT CLINTON REBUFFED A REQUEST BY BOSNIA'S MUSLIM PRESIDENT TO SET A DEADLINE FOR US AIR STRIKES IF SERBS DON'T REMOVE ARTILLERY AROUND SARAJEVO CLINTON PLEDGED TO EVENTUALLY SEND US TROOPS AS PART OF A NATOLED PEACEKEEPING FORCE BUT HE SAID CONGRESS WOULD HAVE TO APPROVE SUCH A STEP A MISUNDERSTANDING BROUGHT SERB AND MUSLIM TROOPS TO THE BRINK OF RENEWED FIGHTING ON MOUNTAIN SLOPES OVERLOOKING BOSNIA'S CAPITAL BUT BOTH SIDES BACKED DOWN WHEN UN OFFICIALS ANNOUNCED THAT THE MUSLIMLED GOVERNMENT ARMY WAS SIMPLY CARRYING OUT A NORMAL ROTATION OF TROOPS RATHER THAN PREPARING FOR COMBAT NEARLY HALF OF ALL ADULT AMERICANS READ AND WRITE IN ENGLISH SO POORLY THAT THEY ARE UNABLE TO FUNCTION EFFECTIVELY IN THE WORKPLACE ACCORDING TO A DEPARTMENT OF EDUCATION REPORT THE STUDY SAID 90 MILLION ADULTS HAVE A LOW LEVEL OF LITERACY MANY OF THOSE WITH LOW READING WRITING AND MATH SKILLS LIVE IN POVERTY THE SENATE APPROVED AND SENT TO CLINTON LEGISLATION THAT WOULD PROVIDE YOUNG PEOPLE WITH EDUCATION AID IN RETURN FOR DOING COMMUNITY SERVICE WORK THE VOTE ON THE LEGISLATION STRONGLY SUPPORTED BY THE WHITE HOUSE WAS 5740 THE HOUSE APPROVED THE MEASURE LAST MONTH THE BILL AUTHORIZES 15 BILLION FOR THE PROGRAM OVER THREE YEARS SOUTH AFRICAN GUNMEN KILLED 25 BLACKS IN THREE SEPARATE ATTACKS AROUND JOHANNESBURG POLICE SAID THE ATTACKS FOLLOWED A LANDMARK ACCORD ON TUESDAY THAT WILL END WHITEMINORITY RULE IN THE COUNTRY IN THE BLOODIEST ATTACK 10 BLACK GUNMEN IN TWO MINIVANS FIRED RANDOMLY AT COMMUTERS IN A PARKING LOT OFFICIALS SAID THE US AND RUSSIA SIGNED A DEFENSE COOPERATION PACT AND BEGAN MAKING PLANS FOR A PEACEKEEPING EXERCISE INVOLVING AN ARMY DIVISION FROM EACH NATION THE ACCORD WAS SIGNED AT THE PENTAGON BY RUSSIAN DEFENSE CHIEF GRACHEV AND DEFENSE SECRETARY ASPIN WHO SAID A NEW COMMUNICATIONS HOTLINE WOULD LINK THEIR OFFICES AN ACADEMY OF SCIENCES PANEL URGED THE FDA TO UNDERTAKE A RAPID EVALUATION OF AN ABORTION PILL WIDELY USED IN EUROPE BUT BANNED IN THE US THE COMMITTEE SAID THE PILL RU486 HAS BEEN SO EXTENSIVELY TESTED IN FRANCE BRITAIN AND SWEDEN THAT THE FDA SHOULD CONSIDER IT WITHOUT REQUIRING FURTHER CLINICAL TRIALS IN THE US A GERMAN TOURIST WAS SHOT AND KILLED AS HE WAS DRIVING A RENTAL CAR TO A MIAMI BEACH HOTEL FROM THE AIRPORT BECOMING THE EIGHTH FOREIGN TOURIST TO BE SLAIN IN FLORIDA IN A YEAR THE VICTIM WAS SHOT IN THE BACK AFTER A VAN RAMMED HIS VEHICLE THE GERMAN FOREIGN MINISTRY SAID IT WOULD REEXAMINE TRAVEL ADVISORIES BECAUSE OF THE ATTACK UKRAINE'S PRESIDENT AGREED TO FACE A NATIONWIDE VOTE OF CONFIDENCE AND STEP DOWN IF HE LOSES APPARENTLY IN A BID TO FORCE WAVERING SUPPORTERS TO RALLY BEHIND HIM KRAVCHUK HAS BEEN UNDER FIRE FOR AN ACCORD WITH RUSSIA THAT HANDS OVER UKRAINE'S WARHEADS AND BLACK SEA FLEET SHIPS IN EXCHANGE FOR DEBT RELIEF AND NUCLEAR FUEL AT LEAST ONE PERSON WAS KILLED AND SEVERAL WOUNDED IN HAITI WHEN A CEREMONY TO RETURN THE CAPITAL'S PRODEMOCRACY MAYOR TO HIS POST SPARKED SHOOTING RADIO REPORTS SAID MAYOR EVANS PAUL ACCOMPANIED BY THE NEW HAITIAN PRIME MINISTER ROBERT MALVAL WERE CONDUCTING THE BRIEF CITY HALL CEREMONY AS THE VIOLENCE ERUPTED OUTSIDE THE EPA PROPOSED A SERIES OF ACTIONS AIMED AT EASING THE BURDEN PLACED ON STATE AND LOCAL GOVERNMENTS BY THE SAFE DRINKING WATER ACT THE PROPOSALS WOULD INCREASE FEDERAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS TO ENFORCE DRINKING WATER STANDARDS WHILE LOOSENING THOSE STANDARDS SOMEWHAT PARTICULARLY FOR SMALLER COMMUNITIES 9309090041 930909 WHO'S NEWS WOOLWORTH CORP WOOLWORTH CORP NEW YORK FRANK J MARRELLA 51 YEARS OLD WAS NAMED VICE PRESIDENT LOGISTICS A NEW POSITION AT THIS RETAILER MR MARRELLA WILL OVERSEE THE WOOLWORTH OVERSEAS CORP UNIT'S FOREIGN BUYING OPERATION HE WAS PRESIDENT AND CHIEF EXECUTIVE OF THE WOOLWORTH OVERSEAS UNIT AND WILL BE SUCCEEDED BY GARY T FULLER MR FULLER 56 WAS EXECUTIVE VICE PRESIDENT OF THE FW WOOLWORTH CO UNIT THE COMPANY ALSO NAMED EDGAR J SWAIN 58 PRESIDENT AND CHIEF EXECUTIVE OF FW WOOLWORTH CO HE SUCCEEDS ROBERT G LYNN 43 WHO LEFT TO PURSUE OTHER INTERESTS MR SWAIN WAS EXECUTIVE VICE PRESIDENT SPECIALTY STORES 9309090040 930909 NEARLY HALF OF AMERICAN ADULTS POSSESS POOR READING MATH SKILLS SURVEY SAYS BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NEW STUDY ON LITERACY SUGGESTS PRESIDENT CLINTON HAS A LONG WAY TO GO TO ACHIEVE HIS GOAL OF BUILDING A HIGHLY EDUCATED SKILLED WORK FORCE THE NATIONAL ADULT LITERACY SURVEY WHICH WAS COMMISSIONED BY THE EDUCATION DEPARTMENT FOUND THAT 90 MILLION AMERICAN ADULTS ALMOST HALF THE ADULT POPULATION POSSESS AT BEST THE MOST RUDIMENTARY SKILLS IN MATH AND IN READING IN ENGLISH AT THE BOTTOM OF FIVE LEVELS OF LITERACY FOR INSTANCE SOME 40 MILLION TO 44 MILLION PEOPLE COULDN'T LOCATE A SINGLE PIECE OF INFORMATION IN A WRITTEN PASSAGE IF DOING SO REQUIRED AN INFERENCE OR ANY BACKGROUND INFORMATION THEY ALSO COULDN'T PERFORM A SINGLE OPERATION UNLESS THE NUMBERS ARE ALREADY IN PLACE AND THE OPERATION IS SPECIFIED ANOTHER 50 MILLION ADULTS COULDN'T CALCULATE THE TOTAL COST OF A PURCHASE DETERMINE THE DIFFERENCE IN PRICE BETWEEN TWO ITEMS LOCATE AN INTERSECTION ON A STREET MAP OR ENTER INFORMATION ON A SIMPLE FORM ACCORDING TO THE STUDY THOSE FINDINGS ARE DISHEARTENING FOR AN ADMINISTRATION THAT BELIEVES AN EDUCATED WORK FORCE IS THE KEY TO REMAINING COMPETITIVE IN THE EMERGING GLOBAL ECONOMY CONCERNS ABOUT THE HUMAN COSTS OF LIMITED LITERACY HAVE IN A SENSE BEEN OVERSHADOWED BY CONCERNS ABOUT THE ECONOMIC AND SOCIAL COSTS NOTES THE REPORT WHICH WAS CONDUCTED BY THE EDUCATIONAL TESTING SERVICE IN PRINCETON NJ AND WESTAT INC OF ROCKVILLE MD THE SURVEY COVERED MORE THAN 26000 ADULTS AGES 16 AND UP CONFIRMING THAT ECONOMIC ACHIEVEMENT IS LINKED INCREASINGLY TO EDUCATION THE SURVEY FOUND THAT ADULTS WITH THE LOWEST LEVELS OF LITERACY HAVE THE MOST TENUOUS TIES TO THE JOB MARKET AND THE LOWEST LEVEL OF EARNINGS ADULTS WHO RANKED IN THE LOWEST OF FIVE LITERACY LEVELS WORKED AN AVERAGE OF ONLY 18 TO 19 WEEKS A YEAR WHILE THOSE IN THE HIGHEST THREE LEVELS WORKED BETWEEN 34 AND 44 WEEKS A YEAR IN ADDITION THE LEAST LITERATE ADULTS EARNED A MEDIAN WEEKLY INCOME UNDER 250 WHILE THOSE IN THE TOP LEVEL EARNED MORE THAN 600 A WEEK IN ANALYZING FIVE DEGREES OF LITERACY THE LATEST REPORT GOES BEYOND MORE SIMPLE DEFINITIONS IN EARLIER STUDIES MOREOVER THE FIVE CATEGORIES TESTED ACTUAL SKILLS RELEVANT TO DAILY LIFE AND WORK ACCORDING TO THE STUDY 46 TO 51 OF AMERICAN ADULTS FALL IN THE LOWEST TWO LEVELS OF LITERACY SOME 61 MILLION ADULTS ABOUT 31 OR 32 RANK IN THE THIRD LEVEL THEY CAN WRITE A BRIEF LETTER TO EXPLAIN THAT AN ERROR HAS BEEN MADE ON A BILL READ AN ARTICLE AND PROVIDE TWO FACTS THAT SUPPORT AN INFERENCE MADE FROM IT AN ADDITIONAL 34 MILLION TO 40 MILLION ADULTS OR 18 TO 21 PERFORMED IN THE HIGHEST TWO LITERACY LEVELS MEANING THEY DEMONSTRATE AN ABILITY TO HANDLE CHALLENGING TASKS INVOLVING COMPLEX DOCUMENTS NUMEROUS DISTRACTIONS AND INFORMATION REQUIRING BACKGROUND KNOWLEDGE AMONG ADULTS IN THE LOWEST LITERACY LEVEL 75 TO 80 HAD LESS THAN EIGHT YEARS OF FORMAL EDUCATION 16 TO 20 HAD EARNED A HIGH SCHOOL DIPLOMA AND 4 MATRICULATED AT FOURYEAR COLLEGES FEWER THAN 1 IN THE TOP TWO LITERACY LEVELS HAD LESS THAN EIGHT YEARS OF EDUCATION AND 44 TO 50 HAD EARNED COLLEGE DEGREES OTHER CHARACTERISTICS OF ADULTS IN THE LOWEST LITERACY LEVELS INCLUDED 25 WERE IMMIGRANTS JUST LEARNING TO SPEAK ENGLISH 33 WERE OVER 65 YEARS OLD 26 HAD MENTAL PHYSICAL OR HEALTH CONDITIONS THAT PREVENTED THEM FROM FULLY PARTICIPATING IN SOCIETY AND 19 HAD VISUAL DIFFICULTIES THAT AFFECTED READING ABILITY MOST ADULTS WHO PLACED IN THE LOWEST TWO LITERACY LEVELS HOWEVER DESCRIBED THEMSELVES AS READING AND WRITING ENGLISH WELL OR VERY WELL BETWEEN 66 AND 75 OF THOSE IN THE LOWEST LEVEL AND AN OVERWHELMING 93 TO 97 OF LEVEL 2 ADULTS FELT THEIR GRASP OF ENGLISH WAS ACCEPTABLE AND THAT THEY DIDN'T NEED HELP OR ADVANCED KNOWLEDGE THIS SENTIMENT MAY BE THE STRONGEST FACTOR HINDERING PRESIDENT CLINTON'S GOAL TO HAVE ALL AMERICAN ADULTS FUNCTIONING AT ADEQUATE LITERACY LEVELS FOR GLOBAL COMPETITION BY THE YEAR 2000 EVEN THOUGH MANY PEOPLE DO NOT PERCEIVE THEMSELVES AS AT RISK' THE FINDINGS SHOW THAT ADULTS WITH LOWER LITERACY SKILLS ARE FAR LESS LIKELY TO WORK FULL TIME TO EARN HIGH WAGES OR TO VOTE EDUCATION SECRETARY RICHARD RILEY SAID SINCE THOSE WITH LOW LITERACY SKILLS ARE FAR MORE LIKELY TO LIVE IN POVERTY WE MUST WORK TO ENSURE THAT THOSE ADULTS WHO ARE JUST 'GETTING BY' TODAY WILL NOT BE LEFT BEHIND BY PROGRESS IN A GLOBAL ECONOMY BY THE RAPID ADVANCES IN TECHNOLOGY AND BY THE TRANSFORMATION OF THE WORKPLACE 9309090039 930909 MARKETSCAN RETAILERS' PRIVATE LABELS STRAIN OLD TIES BY BOB ORTEGA AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL THE PRIVATELABEL WARS ARE ERODING THE ONCECOZY RELATIONSHIP BETWEEN MANUFACTURERS AND GIANT RETAILERS CONSIDER THE TIES THAT BIND PROCTER & GAMBLE CO AND WALMART STORES INC THE NATION'S LARGEST RETAILER AND THE BIGGEST CUSTOMER FOR P&G'S INDUSTRYLEADING TIDE LAUNDRY DETERGENT IN RECENT YEARS THE TWO HAVE BECOME SO CLOSE THAT P&G HAS STATIONED SOME EMPLOYEES NEAR WALMART'S BENTONVILLE ARK HEADQUARTERS TO WORK WITH THE RETAILER BUT THAT DIDN'T STOP WALMART FROM RECENTLY INTRODUCING ULTRA CLEAN A PRIVATELABEL LAUNDRY DETERGENT THAT TAKES DIRECT AIM AT TIDE IT'S A CONCENTRATED POWDER PACKAGED IN A BOX THAT'S THE SAME SIZE AND SHAPE AS TIDE'S MOST POPULAR PACKAGE BUT PRICED FAR LOWER WHILE P&G DECLINES TO COMMENT ON THE MOVE A FORMER P&G EXECUTIVE SAYS THE COMPANY HAD REAL PROBLEMS WHEN WALMART FIRST GOT INTO PRIVATELABEL HEALTH AND BEAUTY AIDS A FEW YEARS AGO AND HE BELIEVES P&G'S LEADERS ARE UNHAPPY WITH THE LATEST DEVELOPMENT WHICH DIRECTLY THREATENS ONE OF THEIR BIGGEST CATEGORIES WALMART ISN'T EVEN LEADING THE MAJOR DISCOUNTERS' ASSAULT ON A 42 BILLION PRODUCT CATEGORY DISCOUNT CHAINS SUCH AS KMART CORP DAYTON HUDSON CORP'S TARGET STORES AND VENTURE INC ALSO ARE PUSHING PRIVATELABEL DETERGENTS HARDER THAN EVER SOME ARE EVEN EXPANDING THEIR LINES BUT WALMART'S ENTRY ANALYSTS SAY REFLECTS A GROWING BELIEF BY RETAILERS THAT BUDGETCONSCIOUS CONSUMERS ARE ACCEPTING PRIVATELABEL PRODUCTS AND WALMART WITH ITS 2300 STORES AND WAREHOUSE CLUBS NATIONWIDE WILL ADD CONSIDERABLE MUSCLE TO THE PRIVATELABEL DETERGENT MARKET THIS PUSH INTO AREAS ONCE DOMINATED BY BIG CONSUMERPRODUCTS MAKERS HAS LED TO A REAL TIGHTROPE ACT FOR MANUFACTURERS SAYS BOB BROWN CHIEF EXECUTIVE OFFICER OF SPAR/BURGOYNE INC A MARKETING CONSULTANT IT'S A DIFFICULT SITUATION FOR THE COMPANIES BECAUSE THEY'RE TRYING TO BUILD UP GOOD RELATIONS WITH WALMART BUT ON THE OTHER HAND THEY WANT TO DEVELOP A COMPETITIVE STRATEGY TO PROTECT THEMSELVES FROM WALMART AT A RECENT BOARD MEETING OF THE NATIONAL ASSOCIATION OF CHAIN DRUGSTORES FOR EXAMPLE MANUFACTURERS UPSET AT LOSING SHELF SPACE TO PRIVATELABEL PRODUCTS ASKED WHAT THEY COULD DO TO STOP THE EROSION BE MORE INNOVATIVE THE BOARD SUGGESTED COME UP WITH NEW PRODUCTS AND EXTENSIONS OF CURRENT LINES TO STAY AHEAD THE MANUFACTURERS DRYLY REPLIED THAT EVERY TIME THEY SPEND MILLIONS INNOVATING THE RETAILERS TURN AROUND AND CARRY THE PRIVATELABEL KNOCKOFFS THAT INEVITABLY FOLLOW THAT THE DISCOUNT RETAILERS WOULD EVEN CONSIDER TAKING ON ENTRENCHED P&G REFLECTS THE CHANGING TIMES UNTIL RECENTLY THE POWERFUL BRAND NAMES IN THE US LAUNDRY DETERGENT MARKET APPEARED IMMUNE TO CHALLENGE NOW MANUFACTURERS ARE FACING THE POSSIBILITY OF SIGNIFICANT MARKETSHARE EROSION ANALYSTS SAY WHILE PRIVATE LABELS ACCOUNTED FOR JUST 32 OF TOTAL US LAUNDRY DETERGENT SALES IN THE 12 MONTHS ENDED AUG 2 SALES GREW AT A HEALTHY 115 IN DOLLARS MOREOVER SALES AT DISCOUNT CHAINS AND OTHER MASS MERCHANDISERS ROSE 523 ACCORDING TO DATA COLLECTED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE IT'S A ZEROSUM GAME PEOPLE AREN'T GOING TO BE BUYING MORE DETERGENT SO EVERY TIME A RETAILER'S PRIVATELABEL DETERGENT GAINS SHARE ONE OR ANOTHER BRAND LOSES SAYS MR BROWN FURTHERMORE THE CONTINUING CONSOLIDATION IN RETAILING ESPECIALLY THE RISE OF HUGE RETAILERS SUCH AS WALMART KMART AND TARGETIS TIPPING THE BALANCE OF POWER IN THE INDUSTRY TOWARD THE RETAILER THE MANUFACTURER NEEDS THEM FOR DISTRIBUTION AND THE RETAILERS KNOW IT SAYS FRANK NEWMAN PRESIDENT OF JACK ECKERD CORP A DRUG CHAIN RETAILERS TODAY CERTAINLY HAVE A LOT MORE POWER IN THE DISTRIBUTION PROCESS THAN WHEN THERE WERE A GREATER NUMBER OF SMALLER REGIONAL OPERATORS IN OTHER CATEGORIES BRANDNAME MANUFACTURERS HAVE TRIED ALL SORTS OF RESPONSES TO THE PRIVATELABEL CHALLENGE PHILIP MORRIS CO SLASHED PRICES IN THE SPRING ON ITS MARLBORO CIGARETTES SPARKING A CIGARETTE PRICE WAR COCACOLA CO ASSIGNED A COTERIE OF MANAGERS TO SET A STRATEGY OF PROMOTIONS STEPPEDUP ADVERTISING AND SELECTED PRICE CUTS RALSTONPURINA CO STARTED MAKING PRIVATELABEL CEREALS ITSELF APPARENTLY ON THE THEORY THAT IF SOMEONE IS GOING TO MEET THAT DEMAND IT MIGHT AS WELL BE THE ONE TO STAY ON TOP MANUFACTURERS AND CONSULTANTS SAY BRANDNAME SUPPLIERS MUST DEVELOP SUPERIOR PRODUCTS AND PLAN SMARTLY THEY SHOULD MAKE SURE THEIR PRICING IS COMPETITIVE AND CRANK UP ADVERTISING SPENDING SAYS FORMER P&G BRAND MANAGER JOHN BISSELL A MARKETING CONSULTANT THEY MAY WANT TO CONSIDER SPECIAL PROMOTIONAL OFFERS WHEN PRIVATELABEL PRODUCTS ARE INTRODUCED AND THEY MIGHT BE BETTER OFF CONCENTRATING THEIR EFFORTS ON A SMALLER NUMBER OF BRANDS P&G HAS ALREADY GONE TO THE WHIP ANNOUNCING IN JULY PLANS TO CUT THE PRICES OF TIDE AND CHEER LIQUID DETERGENTS ITS TWO BESTSELLING LIQUIDS ANALYSTS PREDICT THAT THE REAL LOSERS IN THE WAR MAY BE THE SECONDTIER BRANDS SUCH AS P&G'S OXYDOL AND DASH UNILEVER PLC'S ALL AND COLGATEPALMOLIVE CO'S FAB GABRIEL D LOWY AN ANALYST WITH OPPENHEIMER & CO SAYS THAT WALMART'S ENTRY OFFERS A CHEAP ALTERNATIVE THAT WILL HASTEN THE DISAPPEARANCE OF SECONDARY AND TERTIARY BRANDS THAT HAVE NO CLEAR IDENTITY OR IMAGE WITH THE CONSUMER UNILEVER'S LEVER BROS UNIT COLGATEPALMOLIVE AND DIAL CORP THE MAKER OF PUREX AND BORATEEM SAY THEY AREN'T WORRIED BECAUSE THEY THINK THEY CAN EITHER PRICE COMPETITIVELY OR PERFORM BETTER AND BECAUSE THEIR BRANDS ARE WELL ESTABLISHED WHERE THE PRICE DIFFERENTIAL ISN'T THAT GREAT CONSUMERS STILL GO WITH THE BRAND THEY KNOW CONTENDS JOHN W TEETS DIAL'S CHAIRMAN STILL ANALYSTS SAY WALMART'S SIZE GIVES IT THE LEVERAGE TO DEMAND THE LOWEST COST FROM PRIVATELABEL VENDORS AND ALLOWS IT TO MAKE UP FOR EXTREMELY LOW MARGINS THROUGH HIGH VOLUME WALMART DID SO WELL WITH BLACKANDWHITE GENERIC DETERGENTS SOLD IN A LIMITED NUMBER OF STORES THAT IT COULD HARDLY KEEP THEM ON THE SHELVES SAYS BURT FLICKINGER III A RETAIL CONSULTANT AT AT KEARNEY AND THE DETERGENT WILL BENEFIT FROM THE SOLID REPUTATION ENJOYED BY WALMART'S DOZENS OF OTHER PRIVATELABEL PRODUCTS PRODUCED UNDER THE GREAT VALUE LABEL FURTHERMORE SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION IF WALMART'S SOAP SUCCEEDS IT WILL GIVE COURAGE TO OTHER RETAILERS TO DEVELOP PRODUCTS THEY'VE BEEN RELUCTANT TO MOVE ON BECAUSE THEY WERE RELUCTANT TO CHALLENGE THE ESTABLISHED BRANDS SO FAR WALMART ONLY SELLS ITS ULTRA CLEAN DETERGENT IN ITS 58 SUPERCENTERS JUMBOSIZED WALMART STORES WITH GROCERY SECTIONS A SPOKESWOMAN SAYS THE COMPANY WHICH EXPECTS TO OPEN 22 MORE SUPERCENTERS BY THE END OF THE YEAR DOESN'T CURRENTLY PLAN TO SELL ULTRA CLEAN IN ITS OTHER STORES IT ALSO DOESN'T PLAN TO ADD ANY LIQUID BIODEGRADABLE OR OTHER DETERGENT TYPES TO ITS SELECTION SHE SAYS HOWEVER DAN HUISH PRESIDENT AND CEO OF HUISH DETERGENTS INC WALMART'S DETERGENT SUPPLIER EXPECTS WALMART TO OFFER ULTRA CLEAN MORE WIDELY IN THE NEAR FUTURE AND WHILE WALMART HASN'T DECIDED WHETHER TO SELL PRIVATELABEL LIQUID DETERGENTS OR A GREEN DETERGENT MR HUISH SAYS IT HAS DISCUSSED THESE POSSIBILITIES WITH HIS COMPANY MR HUISH ESTIMATES BASED ON AVERAGE GROCERYSTORE PRICES THAT WALMART'S PRIVATELABEL PRODUCT WILL BE PRICED 30 TO 40 BELOW PREMIUM BRANDS SUCH AS TIDE AND UNILEVER'S WISK AND 20 TO 30 BELOW LESSEXPENSIVE BRANDS SUCH AS CHURCH & DWIGHT CO'S ARM & HAMMER STILL PHIL FITZELL EDITOR OF PRIVATE LABEL MAGAZINE AND AUTHOR OF A RECENTLY PUBLISHED BOOK CALLED PRIVATE LABEL MARKETING IN THE 1990S SUGGESTS THE NEW COMPETITION MAY JUST SPEED UP BRAND CONSOLIDATION THAT WOULD HAVE HAPPENED ANYWAY IT'S GOING TO HURT SOMEWHAT BUT IT'S NOT GOING TO DESTROY THEM THOUGH THE SECONDARY BRANDS WILL PROBABLY DIE EVENTUALLY HE SAYS 9309090038 930909 INTERNATIONAL BRIEF P&O STEAM NAVIGATION CO SHIPPING CONCERN'S EARNINGS FOR HALF ARE DISAPPOINTING PENINSULAR & ORIENTAL STEAM NAVIGATION CO A BRITISH SHIPPING CONSTRUCTION AND PROPERTY GROUP REPORTED DISAPPOINTING EARNINGS FOR THE FIRST HALF EVEN THOUGH PRETAX PROFIT WAS UP 93 FROM THE YEAREARLIER RESTATED RESULT PRETAX PROFIT ROSE TO 2916 MILLION 4495 MILLION FROM 1512 MILLION BUT EXCLUDING AN EXCEPTIONAL GAIN OF 2115 MILLION FROM THE SALE OF FIXED ASSETS AND BUSINESSES P&O TURNED IN AN UNDERLYING PROFIT OF 801 MILLION WHICH WAS WORSE THAN ANALYSTS EXPECTED AS A RESULT P&O SHARES SANK 49 PENCE OR 7 TO 619 PENCE IN LONDON TRADING ANALYSTS SAY THE RESULTS ARE PARTICULARLY POOR GIVEN THE POSITIVE EFFECTS OF EXCHANGERATE MOVEMENTS IN THE FIRST HALF THE MAIN WORRY FOR THE MARKET IS THAT P&O HAS LITTLE HOPE OF IMPROVING ITS RESULTS IN THE NEAR TERM YESTERDAY'S RESULTS SHOWED THAT A KEY COMPONENT OF THE COMPANY'S OPERATIONS THE CRUISE AND FERRIES SIDE IS BUCKLING UNDER COMPETITIVE PRESSURE SALES ROSE 93 TO 269 BILLION FROM 246 BILLION 9309090037 930909 TECHNOLOGY BRIEF AST RESEARCH INC PACT IS REACHED WITH FIRM FOR COMPUTER SALES IN CHINA AST RESEARCH INC IRVINE CALIF PLANS TO ANNOUNCE TODAY IT SIGNED AN AGREEMENT WITH A COMPUTER RESELLER COMPANY TO SELL 80 MILLION OF AST COMPUTERS IN CHINA OVER THE NEXT 11 MONTHS THE COMPUTER MAKER ALSO PLANS TO ANNOUNCE IT HAS FORMED A JOINT VENTURE WITH THE CHINESE GOVERNMENT TO OPEN A MANUFACTURING FACILITY IN TIANJIN CHINA WHICH IS 60 MILES SOUTHEAST OF BEIJING AST WILL HOLD A 90 STAKE IN THE FACILITY WITH AN INVESTMENT NOT EXPECTED TO EXCEED 16 MILLION AN AST SPOKESMAN SAID THE FACILITY WHICH WILL MANUFACTURE DISTRIBUTE AND REPAIR PERSONAL COMPUTERS IS EXPECTED TO OPEN NEXT SEPTEMBER AND TO EMPLOY ABOUT 400 WORKERS AST'S AGREEMENT WITH HONG KONG COMPUTER RESELLER LEGEND TECHNOLOGY LTD CALLS FOR LEGEND TO SELL 40000 AST COMPUTERS OVER THE NEXT 11 MONTHS IN CHINA AST CLOSED AT 15125 A SHARE DOWN 375 CENTS A SHARE IN COMPOSITE OVERTHECOUNTER TRADING 9309090036 930909 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDONESIA INCREASED TO 13 FROM ONE THE NUMBER OF LABOR UNIONS IT RECOGNIZES WHICH MAY HELP JAKARTA KEEP ITS US TARIFF PRIVILEGES DESPITE CRITICISM THAT IT BARS WORKERS FROM ORGANIZING FREELY THE NEW UNIONS WERE FORMED WHEN THE ONLY AUTHORIZED GROUP THE ALLINDONESIA WORKERS' UNION WAS DIVIDED INTO INDUSTRY UNITS THE RESTRUCTURING CAME SIX WEEKS AFTER INDONESIA BLOCKED A MEETING BY INDEPENDENT UNION AND LESS THAN TWO WEEKS BEFORE A US TEAM WILL STUDY LABOR PRACTICES IN THE COUNTRY IN JUNE THE US PUT INDONESIA ON A LIST OF DEVELOPING COUNTRIES WITH ACCESS TO TRADE BENEFITS SUBJECT TO REVIEW BECAUSE OF CONCERNS ABOUT THEIR LABOR PRACTICES A US SENATE PANEL URGED TYING ARMS SALES TO INDONESIA TO IMPROVEMENT OF ITS HUMAN RIGHTS PERFORMANCE IN EAST TIMOR CHINA WILL BEGIN A DRIVE TO BOOST EXPORTS TO RUSSIA SOUTHEAST ASIA THE MIDEAST AND AFRICA IN A BID TO REDUCE ITS TRADE RELIANCE ON WESTERN MARKETS IT ALSO WILL TRY HARDER TO CONTROL THE QUALITY OF CHINESE EXPORTS WHICH AN OFFICIAL SAID HAVE BEGUN TO DEVELOP A POOR REPUTATION ABROAD BECAUSE OF SHODDY AND FAKELABEL GOODS IN THE FIRST SEVEN MONTHS CHINESE EXPORTS GREW 47 BUT IMPORTS SURGED 26 PRODUCING A TRADE DEFICIT OF 462 BILLION CHINA WANTS TO DIVERSIFY ITS MARKETS BECAUSE 70 OF SHIPMENTS NOW GO TO HONG KONG AND 25 TO WESTERN EUROPE AND NORTH AMERICA THE US WILL OPEN MORE OFFICES IN ASIA SOON UNDER ITS INITIATIVE TO HELP THE FASTGROWING REGION SWITCH TO TECHNOLOGY THAT DOESN'T HARM THE ENVIRONMENT A US TRADE OFFICIAL SAID IN MALAYSIA THE USASIA ENVIRONMENT PARTNERSHIP HAS OFFICES IN SINGAPORE AND HONG KONG OPERATIONS COULD START BY NEXT MONTH IN THAILAND MALAYSIA INDONESIA THE PHILIPPINES SOUTH KOREA INDIA AND TAIWAN THE PROGRAM AIMS TO COORDINATE SALES OF US TECHNOLOGY WITH BUYERS IN ASIA WHERE AIR POLLUTION IS A GROWING PROBLEM FACING POSSIBLE TRADE SANCTIONS TAIWAN VOWED TO CRACK DOWN ON ILLEGAL SALES OF RHINOCEROS HORNS AND TIGER BONES DECLARING TAIWAN AND CHINA IN VIOLATION OF UNITED NATIONS AGREEMENTS ON ENDANGERED SPECIES A UN GROUP HAS URGED A BAN ON SOME PLANT AND ANIMAL TRADE WITH THE TWO COUNTRIES FOR THEIR FAILURE TO STOP THE ILLICIT TRADE IN WILDLIFE PARTS THOUGH TAIWAN AND CHINA HAVE OUTLAWED SELLING RHINO AND TIGER PARTS THESE ARE WIDELY AVAILABLE AND USED IN TRADITIONAL CHINESE MEDICINE CHINA DIDN'T COMMENT ON THE THREAT OF SANCTIONS WHICH COULD HURT SALES RANGING FROM ORCHIDS TO TROPICAL FISH FEWER CHILDREN ARE BEING BORN IN JAPAN IN FAMILIES IN WHICH THE WIFE WORKS OR HOUSEHOLD EXPENSES ARE A BURDEN A GOVERNMENT SURVEY FOUND THAT THE AVERAGE FAMILY HAS 205 CHILDREN THAT NUMBER WAS LOWER AMONG WIVES WHO WORKED REGULARLY THAN FOR HOUSEWIVES 167 VS 219 AMONG CITY RESIDENTS FOR EXAMPLE SIMILARLY BIRTHS BY COUPLES LACKING FINANCIAL HELP FROM PARENTS AVERAGED 211 COMPARED WITH 226 FOR THOSE WHO GOT ASSISTANCE THE SURVEY ALSO FOUND YOUNG COUPLES TEND TO DELAY STARTING FAMILIES 40 OF THOSE MARRIED LESS THAN FOUR YEARS WERE CHILDLESS WESTERN GERMAN EXPORTS COULD GROW AN INFLATIONADJUSTED 3 OR 4 NEXT YEAR AFTER FALLING BETWEEN 5 AND 6 THIS YEAR THE HWWA INSTITUTE FOR ECONOMIC RESEARCH PREDICTED THE HAMBURG INSTITUTE SAID SHIPMENTS NOW HAVE HIT THEIR LOW POINT BUT IT HEDGED ITS FORECAST SAYING THE ABOLITION OF CUSTOMS DECLARATIONS ON TRADE WITHIN THE EUROPEAN COMMUNITY HAS MADE RESEARCHERS DEPENDENT ON DATA FROM COMPANIES TO TRACE THE FLOW OF GOODS INDIA PLANS TO TEST ITS FIRST SATELLITELAUNCHING ROCKET BY NEXT WEEK ONCE IT COMPLETES THREE SUCCESSFUL FLIGHTS THE SPACE AGENCY WILL MARKET THE ROCKET'S SERVICES ABROAD AT WHAT IT SAID WOULD BE HALF THE PRICE WESTERN NATIONS CHARGE THE DOMESTICALLY BUILT POLAR SATELLITE LAUNCH VEHICLE A FOURSTAGE ROCKET IS TO BE LOFTED FROM SRIHARIKOTA ISLAND OFF SOUTHERN ANDHRA PRADESH STATE IT CAN CARRY A PAYLOAD OF AS MUCH AS TWO TONS AND HAS A 560MILE RANGE WHICH THE INDIAN SPACE RESEARCH ORGANIZATION SAID IS IDEAL FOR PUTTING INTO ORBIT SOME KINDS OF SATELLITES SUCH AS THOSE FOR SCIENTIFIC EXPLORATION INDIA HAS SPENT 127 BILLION OVER 20 YEARS ON ITS PROGRAM TO DEVELOP SATELLITES AND LAUNCHERS AND INTENDS TO OPERATE A SELFRELIANT COMMERCIAL BUSINESS SEPARATELY INDIA DECREED THAT HALF OF ALL FEDERAL JOBS WILL BE SET ASIDE FOR THE UNDERPRIVILEGED REFLECTING THEIR PROPORTION OF THE 880 MILLION POPULATION CRITICS SAID THAT WHILE THE AFFIRMATIVE ACTION PROGRAM MAY HELP THE POOR IT ALSO WOULD REINFORCE CASTE DISTINCTIONS BAR QUALIFIED CANDIDATES FROM SOME JOBS AND PROMOTE INEFFICIENCY NEW AIDS CASES IN ASIA MAY EXCEED NEW CASES IN AFRICA BY THE YEAR 2000 WITH STAGGERING EFFECTS ON ASIAN ECONOMIES AN AIDS WORKSHOP IN MANILA WAS TOLD THE ASIAN TOTAL OF INFECTIONS WITH HIV THE VIRUS THAT LEADS TO AIDS WAS TWO MILLION LAST YEAR AND IS EXPECTED TO SURPASS AFRICA WHICH HAD SEVEN MILLION IN 1992 AFTER A MONTH IN OFFICE JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA HAS UNPRECEDENTED POPULAR SUPPORT AS HE PURSUES POLITICAL CHANGE IN THREE POLLS HIS APPROVAL RATINGS RANGED FROM 71 TO 79 POSTWORLD WAR II RECORDS 9309090035 930909 INTERNATIONAL EUROPEAN INTEREST RATES STAY SKYHIGH EC NATIONS DESPITE NEW LATITUDE TAKE CUE FROM GERMANY BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN INTEREST RATES DEFYING EXPECTATIONS HAVE REMAINED SKYHIGH IN THE MONTH SINCE EUROPEAN COMMUNITY GOVERNMENTS LOOSENED THE TIES THAT LINK THEIR NATIONAL CURRENCIES AND THEY COULD STAY THAT WAY FOR SOME TIME RATHER THAN USING THEIR NEWFOUND MONETARY FREEDOM TO CUT RATES AGGRESSIVELY MOST EUROPEAN NATIONS HAVE CHOSEN TO STICK WITH GERMANSTYLE RIGOR AND MAINTAIN STRONG CURRENCIES DESPITE STUBBORN RECESSION AND GROWING UNEMPLOYMENT THE MEDIUMTERM TREND SAY ECONOMISTS AND EUROPEAN MONETARY OFFICIALS IS FOR A CONTINUATION OF THE GENTLE EASING OF RATES THAT STARTED SEVERAL MONTHS AGO BUT THE DECLINE IS LIKELY TO BE SLOWER THAN ANTICIPATED AND WILL CONTINUE TO DEPEND ON THE SPEED AT WHICH THE BUNDESBANK THE GERMAN CENTRAL BANK CUTS ITS RATES THE BUNDESBANK'S RATESETTING COMMITTEE HOLDS ITS REGULAR MEETING TODAY BUT ANALYSTS HAVE BEEN WRONG SO OFTEN IN THE PAST ABOUT WHETHER THE CENTRAL BANK WILL EASE RATES THAT FEW ARE PREDICTING WHAT WILL HAPPEN AT THE MEETING BECAUSE OF THE SLOW ACTION ON RATES THE IMPACT ON EUROPEAN ECONOMIES WILL ACCORDINGLY BE LESS MARKED THAN MANY HAD HOPED AFTER AUGUST'S CURRENCY CRISIS THE ECONOMISTS SAY THAT CRISIS FORCED GOVERNMENTS TO LOOSEN THE BANDS OF EXCHANGE RATES IN WHICH CURRENCIES GROUPED WITHIN THE EUROPEAN MONETARY SYSTEM CAN FLUCTUATE INSTEAD OF BEING ALLOWED TO MOVE JUST 225 AGAINST A CENTRAL RATE AS BEFORE THE MARGIN WAS INCREASED TO 15 THE CHANGE GAVE GOVERNMENTS AND CENTRAL BANKS GREATER FREEDOM TO REDUCE RATES AND UNCOUPLE THEMSELVES FROM GERMAN MONETARY POLICY WHICH HAS BEEN ESPECIALLY TIGHT TO OFFSET THE INFLATIONARY EFFECTS OF GERMAN REUNIFICATION BUT DURING THE CRISIS TALK ABOUT THE FREEDOM AND FLEXIBILITY THAT WERE GAINED WAS OVERVALUED CONCEDES AN OFFICIAL AT THE EUROPEAN COMMUNITY'S EXECUTIVE COMMISSION IN BRUSSELS WHO DEALS WITH MONETARY AND ECONOMIC ISSUES THE CHANGES DID GIVE A LARGER MARGIN OF FLEXIBILITY BUT THERE IS STILL A CLEAR LINK WITH GERMANY THE BUNDESBANK'S INFLUENCE ON THE REST OF THE EUROPEAN COMMUNITY REMAINS ENORMOUS HE ADDED CERTAINLY NOBODY APPEARS TO BE FOLLOWING THE EXAMPLE OF BRITAIN WHICH SLASHED ITS INTEREST RATES AFTER STERLING WAS FORCED OUT OF THE EXCHANGERATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM LAST SEPTEMBER WHILE RATES ON THE CONTINENT HAVE GENERALLY RETURNED TO NEAR THEIR LEVELS BEFORE LAST MONTH'S CRISIS THEY HAVEN'T DROPPED MUCH LOWER INDEED THE BELGIAN CENTRAL BANK LAST WEEK RAISED A KEY RATE TO WARD OFF A RENEWED SPECULATIVE RUN ON ITS CURRENCY THE ONLY EXCEPTION TO THE RULE SO FAR IS SPAIN WHOSE CENTRAL BANK LAST FRIDAY CUT ITS BENCHMARK RATE TO 10 THE LOWEST SINCE THAT NATION BEGAN TO ADAPT ITS MARKETS TO THE EUROPEAN COMMUNITY WHICH IT JOINED IN 1986 THE DECISION NOT TO CUT RATES AGGRESSIVELY APPEARS TO BE MOTIVATED BY A NUMBER OF FACTORS INCLUDING FEAR OF TRIGGERING ANOTHER CURRENCY CRISIS AND THE NEED TO REPLENISH THE HUNDREDS OF BILLIONS OF DOLLARS THE CENTRAL BANKS USED LAST MONTH TO INTERVENE IN FOREIGN EXCHANGE MARKETS IN A DESPERATE ATTEMPT TO PREVENT THE SYSTEM FROM COLLAPSING BUT TWO MAJOR POLITICAL AND PRACTICAL REASONS UNDERLIE THE CAUTIOUS APPROACH GOVERNMENTS ARE ADAMANT THEY WANT TO CONTINUE THEIR GOAL OF CREATING A EUROPEAN MONETARY UNION BY THE END OF THE CENTURY DESPITE THE NEAR BREAKDOWN OF THE CURRENCY SYSTEM THAT WAS SUPPOSED TO BE AT THE HEART OF SUCH A UNION THE COMMITMENT TO MONETARY UNION REMAINS AS GREAT AS EVER SAYS SIR LEON BRITTAN AN EC COMMISSIONER ONE LESSON OF LAST MONTH'S CRISIS HE SAYS IS THAT THE CURRENT SYSTEM LINKING CURRENCIES IS NO SUBSTITUTE FOR A SINGLE CURRENCY SIR LEON SAID VARIOUS OPTIONS ARE UNDER DISCUSSION TO ACHIEVE THAT GOAL BUT DIDN'T ELABORATE THE SECOND MAIN REASON FOR THE CAUTION IN CUTTING RATES STEMS FROM THE REALIZATION THAT EUROPEAN COMMUNITY NATIONS CAN'T EASILY UNDERCUT INTERESTRATE LEVELS IN GERMANY EVEN IF THE REVAMPING OF THE SYSTEM LAST MONTH TECHNICALLY GAVE THEM THE POSSIBILITY OF DOING SO THAT'S BECAUSE ANY ATTEMPT TO LOWER INTEREST RATES TOO FAR BELOW GERMAN LEVELS WOULD AUTOMATICALLY MAKE A NATIONAL CURRENCY LESS ATTRACTIVE IN FINANCIAL MARKETS AND SPARK A CURRENCY DEPRECIATION THAT NO GOVERNMENT OR CENTRAL BANK SEEMS TO WANT THERE IS NO NEED FOR FRANCE TO DEVALUE BECAUSE WE HAVE NO PROBLEMS WITH COMPETITIVENESS NO INFLATION AND EXTERNAL SURPLUSES SAYS PATRICK ARTUS AN ECONOMIST AT THE FRENCH STATEOWNED CENTRAL SAVINGS BANK CAISSE DES DEPOTS & CONSIGNATIONS HE SAYS INTEREST RATE CUTS ARE BADLY NEEDED IN FRANCE TO BOOST THE ECONOMY BUT WE STILL DON'T HAVE A SYSTEM THAT DISCONNECTS INTEREST RATES THE NEW SYSTEM IS LESS UNSTABLE THAN THE OLD SYSTEM BUT IT STILL REVOLVES DE FACTO AROUND GERMANY THE PROBLEM FOR GOVERNMENTS IS THAT POLITICAL DISCONTENT COULD EASILY SOAR UNLESS RATES DESCEND FAIRLY RAPIDLY LIKE FRANCE MOST EC NATIONS ARE BOGGED DOWN IN RECESSION WITH THE JOBLESS RANKS EXPANDING RAPIDLY AND PRIVATE INVESTMENT DROPPING SHARPLY HIGH REAL INTEREST RATES IS THE LAST THING THEY NEED THE DEBATE OVER STRATEGY IS ALREADY HEATING UP AS SUMMER VACATIONS END IN BELGIUM 14 ECONOMISTS FROM THE NATION'S RESPECTED CATHOLIC UNIVERSITY OF LEUVEN SIGNED AN OPEN LETTER TO THE PRIME MINISTER URGING HIM TO REVERSE MONETARY COURSE AND SUSPEND THE BELGIAN FRANC'S LINK TO THE MARK THE GOVERNMENT SHOULD ADOPT A MONETARY POLICY FAVORABLE TO JOB CREATION THE LETTER SAID IN FRANCE MEANWHILE A PRESS DEBATE IS RAGING AMONG SENIOR OFFICIALS WRITING UNDER PSEUDONYMS ONE ARTICLE IN THE DAILY LIBERATION SIGNED CLOVIS DESCRIBED AS THE PSEUDONYM OF A GROUP OF TOP BANKERS ATTACKED THE AYATOLLAHS OF FRANCE'S STRONGFRANC POLICY AND COMPLAINED THAT STRATOSPHERIC RATES OF INTEREST ARE STIFLING THE ECONOMY IT WAS THE REPLY TO AN EARLIER PIECE IN LE MONDE SIGNED BY JEANCLAUDE LEFRANC DESCRIBED AS THE PSEUDONYM FOR A GROUP OF SENIOR FUNCTIONARIES WHO WARNED AGAINST ANY BRITISHSTYLE ATTEMPT TO GO IT ALONE ON INTEREST RATES WHILE THE DISCUSSION CONTINUES GOVERNMENTS ARE LOOKING FOR OTHER WAYS TO CURB GROWING UNEMPLOYMENT THIS HAS LED TO A SHARP INCREASE IN BUDGET DEFICITS ACROSS THE EUROPEAN COMMUNITY ESPECIALLY IN FRANCE AND DENMARK WHICH SOME ECONOMISTS MAINTAIN IS FAR MORE DANGEROUS THAN A DEVALUED CURRENCY PERHAPS THE ONLY WINNER IN THIS SITUATION IS THE BUNDESBANK UNDER THE OLD SYSTEM WITH NARROW BANDS IT WAS COMPELLED TO PROP UP OTHER CURRENCIES AND HAD TO TAKE THAT COMPULSION INTO ACCOUNT WHEN CONSIDERING ITS OWN CREDIT POLICIES NOW WITH THE BANDS WIDENED TO THE POINT OF MEANINGLESSNESS IT IS FREE TO CARRY OUT ITS MONETARY POLICY UNENCUMBERED BY WHAT ITS NEIGHBORS ARE DOING 9309090034 930909 WHITE HOUSE EXPECTS HEALTHCARE PLAN TO TRIM DEFICIT BY 91 BILLION BY 2000 BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CLINTON ADMINISTRATION OFFICIALS ESTIMATE THAT THEIR HEALTHCARE PLAN WOULD PARE 91 BILLION FROM THE FEDERAL BUDGET DEFICIT BY 2000 EVEN AS THE GOVERNMENT SPENDS TENS OF BILLIONS OF NEW DOLLARS EACH YEAR TO COVER THE UNINSURED ASSUMING THE PLAN IS ENACTED BY THE MIDDLE OF NEXT YEAR OFFICIALS EXPECT SOME DEFICIT REDUCTION BY 1996 OR 1997 PRIMARILY AS NEW GOVERNMENT EXPENSES ARE MORE THAN OFFSET BY SPENDING CAPS ON MEDICARE AND MEDICAID AS WELL AS A SHIFT OF INDIVIDUALS IN PUBLICHEALTH PROGRAMS TO EMPLOYERPROVIDED COVERAGE MANY ECONOMISTS HOWEVER HAVE BEEN SKEPTICAL OF THE ADMINISTRATION'S CLAIMS THAT THE GOVERNMENT CAN SAVE MONEY RIGHT AWAY FROM HEALTHCARE REFORM BUDGET ANALYSTS OUTSIDE THE GOVERNMENT DON'T HAVE ENOUGH DATA TO ANALYZE THE WHITE HOUSE ESTIMATES BUT THEY ARE DUBIOUS ABOUT SAVING SO MUCH ON MEDICARE AND MEDICAID AND PUTTING SO MUCH OF THOSE SAVINGS TOWARD DEFICIT REDUCTION IN THE NEXT SEVERAL YEARS IT SEEMS TO DEFY GRAVITY SAID PETE DAVIS A WASHINGTONBASED CONSULTANT ON TAX AND BUDGETARY MATTERS BUT MARTHA PHILLIPS A FORMER HOUSE BUDGET COMMITTEE STAFF DIRECTOR NOW WITH THE CONCORD COALITION TERMED THE ADMINISTRATION'S LATEST PROJECTION AMBITIOUS BUT NOT TOTALLY WITHOUT CREDIBILITY IF YOU'RE TALKING THAT FAR OUT THE 91 BILLION CUMULATIVE SAVINGS WHILE A HUGE SUM WOULD BE MINUSCULE COMPARED WITH THE 1062 TRILLION CUMULATIVE BUDGET DEFICIT PROJECTED BY THE CONGRESSIONAL BUDGET OFFICE FOR FISCAL 1996 THROUGH 2000 STILL IT WOULD MARK A SEA CHANGE IN THE EFFECT OF HEALTH COSTS ON FEDERAL SPENDING THE ESCALATING COST OF MEDICAL ENTITLEMENT PROGRAMS IN RECENT YEARS HAS BEEN THE BIGGEST CONTRIBUTOR TO THE DEFICIT UNDER THE PLAN PRESIDENT CLINTON HOPES TO UNVEIL SEPT 22 ADMINISTRATION OFFICIALS HAVE CALCULATED IT WOULD COST 40 BILLION TO COVER THE 37 MILLION PEOPLE WHO DON'T NOW HAVE HEALTH INSURANCE AND THEY HAVE ESTIMATED IT WOULD COST 20 BILLION TO 30 BILLION TO UPGRADE THE HEALTH POLICIES OF THE INSURED TO THE LEVEL OF THE STANDARD BENEFITS PACKAGE IN THE CLINTON PLAN SOME OF THE COSTS WOULD BE BORNE BY EMPLOYERS WHO UNDER THE CLINTON PLAN WOULD BE REQUIRED TO PAY ON BEHALF OF EACH WORKER 80 OF THE AVERAGE PREMIUM FOR A STANDARD FEDERALLY GUARANTEED PACKAGE OF BENEFITS MUCH OF THE COST ACCORDING TO OFFICIALS WOULD BE PICKED UP BY THE FEDERAL GOVERNMENT THROUGH SUBSIDIES TO SMALL BUSINESSES AND LOWINCOME AND UNEMPLOYED PEOPLE BUT ADMINISTRATION OFFICIALS CLAIM THEY CAN WRING AMBITIOUS SAVINGS FROM PUBLIC PROGRAMS AND COLLECT ENOUGH NEW REVENUE FROM SOCALLED SIN TAXES TO RAISE MORE THAN ENOUGH TO COVER THE SUBSIDIES START A FEDERAL LONGTERM CARE PROGRAM AND ADD A PRESCRIPTIONDRUG BENEFIT TO MEDICARE BETWEEN 1994 AND 2000 ADMINISTRATION OFFICIALS ESTIMATE THE PLAN WOULD SAVE IN ADDITION ACCORDING TO ADMINISTRATION ESTIMATES THE GOVERNMENT WOULD COLLECT IN THOSE YEARS NEW CONGRESSIONAL BUDGET OFFICE PROJECTIONS RELEASED YESTERDAY SHOW THAT THE GOVERNMENT'S TWO MAIN HEALTH PROGRAMS MEDICARE AND MEDICAID WILL COST ABOUT 219 BILLION THIS FISCAL YEAR THAT EQUALS ABOUT 35 OF GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US UNLESS POLICIES ARE CHANGED THEY ARE PROJECTED TO COST 464 BILLION OR 53 OF GDP BY 2000 SEPARATELY A 250PAGE OUTLINE OF THE PLAN SAID THE ADMINISTRATION INTENDS TO SEEK REPEAL OF HEALTH INSURERS' EXEMPTION FROM FEDERAL ANTITRUST LAWS THE MEASURE IS CONTAINED ON PAGE 171 OF THE OUTLINE WHICH MEMBERS OF CONGRESS THEIR STAFFS AND SELECTED INTEREST GROUP REPRESENTATIVES HAVE BEEN PERMITTED TO READ BUT NOT COPY IN LOCKED OR MONITORED ROOMS ON CAPITOL HILL AND AT THE WHITE HOUSE ELIMINATING THE EXEMPTION CREATED BY THE MCCARRANFERGUSON ACT OF 1945 WOULD BE EXTREMELY HELPFUL IN FOSTERING COMPETITION AMONG HEALTH PLANS SAID ROBERT BLOCH AN ANTITRUST LAWYER AND A FORMER JUSTICE DEPARTMENT OFFICIAL WHO SPECIALIZED IN HEALTHCARE ANTITRUST ISSUES SUCH ACTION HE SAID WOULD EXPOSE ALL INSURANCE COMPANIES' PRICESETTING FUNCTION TO ANTITRUST SCRUTINY THE PROPOSAL MEANS THAT HEALTH PLANS WOULD LOSE THEIR ABILITY TO COLLECTIVELY DETERMINE RATES THEY CHARGE AND OTHER TERMS OF THEIR RELATIONSHIP WITH HEALTHCARE PROVIDERS ACCORDING TO THE OUTLINE THE ADMINISTRATION APPEARS TO BE PLANNING TO REPEAL THE EXEMPTION FOR HEALTH INSURERS ONLY NOT OTHER INSURANCE FIRMS ALTHOUGH SOME LARGE HEALTHCARE INSURERS SAY THEY GENERALLY DO NOT SHARE SUCH INFORMATION WITH EACH OTHER THE MOVE IS LIKELY TO BE OPPOSED BY THE INDUSTRY WHICH HAS REGARDED ITS ANTITRUST EXEMPTION AS A HOLY GRAIL THE HEALTH INSURANCE ASSOCIATION OF AMERICA DECLINED TO COMMENT SAYING IT HADN'T SEEN THE PROPOSAL THE ADMINISTRATION ALSO CLARIFIED ITS PROPOSALS ON TAXATION OF HEALTH BENEFITS UNDER THE CLINTON PLAN EMPLOYERS COULD DEDUCT AS A LABOR COST ANY HEALTH BENEFITS THEY PROVIDE THEIR WORKERS EVEN BENEFITS THAT AREN'T CONTAINED IN THE STANDARD PACKAGE THE CLINTON PLAN WOULD GUARANTEE TO ALL AMERICANS EMPLOYEES EVENTUALLY WOULD HAVE TO PAY TAX ON ANY BENEFITS THEY RECEIVE FROM THEIR EMPLOYER THAT AREN'T IN THE GUARANTEED PACKAGE BUT ANY BENEFITS THAT A WORKER RECEIVED AS OF JAN 1 1993 WOULD CONTINUE TO BE TAXFREE FOR EIGHT TO 10 YEARS AFTER THE PLAN IS ENACTED CURRENTLY ALL EMPLOYERPROVIDED HEALTH BENEFITS ARE EXEMPT FROM EMPLOYEES' INCOME DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9309090033 930909 BUSINESS BRIEF VANGUARD REAL ESTATE FUND II EARNINGS OF SECOND QUARTER REVISED DOWN TO 588000 VANGUARD REAL ESTATE FUND II REVISED ITS RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ACCOUNTING FOR 156000 IN INTEREST EXPENSE NOT PREVIOUSLY RECORDED THE VALLEY FORGE PA REAL ESTATE INVESTMENT TRUST SAID THE EXPENSE HAD BEEN MISBOOKED AS INTEREST INCOME FOR THE QUARTER THE CONCERN NOW SAYS NET INCOME WAS 588000 OR NINE CENTS A SHARE COMPARED WITH THE PREVIOUSLY REPORTED 744000 OR 11 CENTS A SHARE FOR THE SIX MONTHS THE REVISED FIGURES RESULT IN A NET LOSS OF 26000 OR 04 CENT A SHARE COMPARED WITH THE PREVIOUSLY REPORTED PROFIT OF 130000 OR TWO CENTS A SHARE IN THE 1992 SECOND QUARTER VANGUARD REPORTED A NET LOSS OF 947000 OR 14 CENTS A SHARE AND FOR THE FIRST SIX MONTHS THE COMPANY REPORTED A NET LOSS OF 539000 OR EIGHT CENTS A SHARE 9309090032 930909 BUSINESS BRIEF MITCHELL ENERGY & DEVELOPMENT OIL AND GAS BUDGET OUTLAYS ARE INCREASED BY 15 MILLION MITCHELL ENERGY & DEVELOPMENT CORP SAID IT INCREASED ITS OIL AND GAS EXPLORATION AND PRODUCTION BUDGET THIS YEAR BY ABOUT 15 MILLION TO 2354 MILLION MORE THAN 10 MILLION OF THE INCREASE WAS ALLOCATED FOR DRILLING NEW WELLS THE COMPANY SAID THE REMAINDER IS FOR PROPERTY ACQUISITIONS SEISMIC DATA AND OTHER ACTIVITIES THE WOODLANDS TEXAS COMPANY SAID THE INCREASE STEMS FROM SHARPLY HIGHER NATURALGAS PRICES GOOD RESULTS FROM DRILLING EFFORTS THIS YEAR AND A LARGE INVENTORY OF PROSPECTS IT ALSO SAID IT LOWERED ITS REALESTATE DIVISION'S CAPITAL BUDGET BY 4 MILLION TO 759 MILLION BECAUSE OF LOWER DEMAND FOR RESIDENTIAL AND RESORT LOTS 9309090031 930909 THREE SHORT SELLERS MUST COVER POSITIONS IN CABLE TV CONCERN NEW YORK A FEDERAL JUDGE RULED THAT THREE SHORT SELLERS WOULD HAVE TO COVER THEIR POSITIONS IN FUTURE COMMUNICATIONS INC AT THE LAST PRICE TRADED BUT ENJOINED THE SECURITIES CLEARINGHOUSE FROM TRANSFERRING ANY FUNDS IN EXCESS OF THAT PRICE IN GRANTING A TEMPORARY RESTRAINING ORDER JUDGE THOMAS P GRIESA RULED THAT THE SHORT SELLERS GORDON & CO FAHNESTOCK/CHRISTOPHER AND ASPEN CAPITAL GROUP WOULD HAVE TO PURCHASE FUTURE COMMUNICATIONS STOCK AT 27375 A SHARE THE PRICE ON AUG 31 WHEN THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HALTED TRADING TO DETERMINE WHETHER THE CABLE TELEVISION CONCERN MET TRADING CRITERIA THE DIFFERENCE BETWEEN THAT PRICE AND THE 36 PRICE SOUGHT BY REYNOLDS KENDRICK STRATTON INC A LOS ANGELESBASED BROKERAGE FIRM WILL BE HELD IN ESCROW PENDING FURTHER ORDER OF THE COURT THE TEMPORARY RESTRAINING ORDER EXPIRES IN 10 DAYS AND LAWYERS INVOLVED IN THE CASE SAID THEY EXPECT THE PLAINTIFFS TO SEEK A PRELIMINARY INJUNCTION THAT WOULD CONTINUE THE TERMS OF THE ORDER FOR THE DURATION OF THE CASE IN A STATEMENT REYNOLDS KENDRICK SAID THAT IT WAS PLEASED WITH THE COURT'S DECISION AND THAT THAT IT BELIEVES THAT WHEN ALL THE FACTS ARE KNOWN THE REMAINDER OF THE FUNDS WILL BE RELEASED FROM ESCROW SEPARATELY ASPEN BASED IN DENVER FILED SUIT HERE LATE TUESDAY AGAINST REYNOLDS KENDRICK JOINING GORDON AND FAHNESTOCK IN THE ACTION THE INVESTMENT FIRMS ALLEGE THAT REYNOLDS KENDRICK AND AN EMPLOYEE BROKER RAFI KHAN HAD EFFECTIVELY CORNERED THE MARKET IN FUTURE COMMON SHARES TO FORCE SHORTSELLERS TO BUY THE STOCK AT A PRICE THAT BORE NO RELATION TO THE MARKET PRICE MR KHAN DENIED THE ALLEGATIONS HE SAID THAT ON FRIDAY HIS FIRM BOUGHT 193676 SHARES AT 36 APIECE AFTER FAILING TO FIND A SELLER FOR A LOWER AMOUNT THUS ESTABLISHING THE PRICE AFTER FUTURE SHARES HAD SOARED FROM 650 IN RECENT MONTHS GORDON FAHNESTOCK AND ASPEN SOLD SHORT A TOTAL OF MORE THAN 150000 SHARES HOPING TO MAKE A PROFIT BY REPLACING THE BORROWED STOCK WITH SHARES PURCHASED AT A LOWER PRICE 9309090030 930909 POLITICS & POLICY PEROT FAMILY'S AIRPORT PROJECT GETS A LITTLE NAFTA OF ITS OWN FROM US BY BOB DAVIS AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE COMMERCE DEPARTMENT HAS APPROVED A TARIFFREDUCTION ARRANGEMENT FOR A PROJECT OF THE FAMILY OF ROSS PEROT EVEN THOUGH MR PEROT HAS BEEN STUMPING THE COUNTRY WARNING THAT CUTTING TARIFFS WITH MEXICO COULD COST MILLIONS OF AMERICANS THEIR JOBS MEANWHILE THE NORTH AMERICAN FREE TRADE AGREEMENT ALREADY STRUGGLING IN CONGRESS FACED ANOTHER SETBACK AS SENATE LEADERS DECIDED THAT THE SENATE WON'T VOTE ON THE PACT BEFORE THE MORE HOSTILE HOUSE DOES SO THIS FALL LATE LAST MONTH THE COMMERCE DEPARTMENT GRANTED THE ALLIANCE AIRPORT PROJECT IN TEXAS A PEROT FAMILY VENTURE THAT IS MANAGED BY ROSS PEROT JR THE RIGHT TO ESTABLISH A FOREIGNTRADE ZONE IN A 17000ACRE DEVELOPMENT NORTH OF FORT WORTH THE PROJECT IS BEING MARKETED AS A MANUFACTURING CENTER WHERE COMPANIES CAN SHIP IN PARTS ASSEMBLE THEM AND SEND OUT FINISHED PRODUCTS SO FAR THE VENTURE HAS BEEN A DISAPPOINTMENT BUT ITS DESIGNATION AS A FOREIGNTRADE ZONE SHOULD GIVE IT A BIG BOOST ITS SALVATION MAY LIE IN EXPANDED TRADE WITH MEXICO IN A FOREIGNTRADE ZONE COMPANIES CAN IMPORT COMPONENTS MANUFACTURE THEM INTO PRODUCTS AND REEXPORT THEM WITHOUT PAYING IMPORT DUTIES THERE ARE THREE OTHER ZONES IN THE DALLASFORT WORTH AREA AND 190 THROUGHOUT THE COUNTRY HAYS LINDSLEY A LAWYER FOR THE PEROT DEVELOPMENT SAID THAT THE FOREIGNTRADE ZONE ISN'T INCONSISTENT WITH THE SENIOR MR PEROT'S OPPOSITION TO THE NORTH AMERICAN FREE TRADE AGREEMENT NAFTA WILL ATTRACT JOBS OUT OF THE US AND INTO MEXICO MR LINDSLEY SAID WHILE THE FOREIGNTRADE ZONE WILL ATTRACT JOBS TO THE US THE COMMERCE DEPARTMENT SAID IT TREATED THE PROJECT AS A ROUTINE MATTER AND JUDGED IT ON ITS ECONOMIC MERITS COMMERCE SECRETARY RON BROWN HIMSELF SIGNED OFF ON THE APPROVAL WHICH HAD BEEN RECOMMENDED BY DEPARTMENT STAFF MEMBERS THE PEROT FAMILY'S PURSUIT OF TARIFF BREAKS WHICH HAS BEEN REPORTED IN THE PRESS CONTRASTS SHARPLY WITH THE SENIOR MR PEROT'S SIMULTANEOUS CRITICISM OF TARIFFBREAK PROVISIONS IN NAFTA ROSS PEROT JR HAS BEEN LEADING THE 200 MILLION AIRPORT PROJECT AND BOTH PEROTS APPEAR SIDEBYSIDE IN A PHOTOGRAPH IN THE FIRST PAGE OF THE ALLIANCE PROMOTIONAL BROCHURE BUT PEOPLE FAMILIAR WITH THE PROJECT SAY THAT THE ELDER MR PEROT IS RUNNING THE SHOW IN TRYING TO GET NAFTA THROUGH CONGRESS PRESIDENT CLINTON AND HIS STRATEGISTS PICKED UP ON A SUGGESTION FROM SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS A NAFTA SUPPORTER AND ATTEMPTED TO SHIFT THE FIRST VOTE TO THE SENATE WHERE APPROVAL IS LIKELY TRADITIONALLY THE HOUSE ACTS FIRST ON TRADE MEASURES THE ADMINISTRATION HOPED THAT SENATE APPROVAL COULD HAVE CREATED MOMENTUM FOR THE DEBATE IN THE HOUSE WHERE BROAD DEMOCRATIC OPPOSITION LEAVES THE PACT'S FATE MUCH IN DOUBT BUT SEN DANIEL MOYNIHAN D NY CHAIRMAN OF THE FINANCE COMMITTEE WHICH IS RESPONSIBLE FOR TRADE ISSUES OPPOSES A SENATEFIRST STRATEGY BECAUSE OF PARLIAMENTARY PROBLEMS THE LAW GOVERNING CONSIDERATION OF THE TRADE AGREEMENT BY CONGRESS PROTECTS IT FROM OPPONENTS' AMENDMENTS OR FILIBUSTERS IN THE SENATE BUT THOSE PROCEDURAL PROTECTIONS WOULD BE FORFEITED IF THE HOUSE DOESN'T GO FIRST ACCORDING TO ADVISORIES FROM THE SENATE PARLIAMENTARIAN'S OFFICE SEN MAX BAUCUS THE DEMOCRAT WHO HEADS THE FINANCE PANEL'S TRADE SUBCOMMITTEE ALSO CHASTISED THE WHITE HOUSE IN A SENATE SPEECH THIS WEEK FOR TAKING SENATE APPROVAL AS A FOREGONE CONCLUSION THE SENATOR FROM WHEATPRODUCING MONTANA IS TROUBLED BY ISSUES RELATED TO CANADIAN WHEAT WHICH HE SAYS IS UNFAIRLY SUBSIDIZED BY THE CANADIAN GOVERNMENT BUT THE TOUGHEST FIGHT CLEARLY WILL BE IN THE HOUSE WHERE EVEN THE DEMOCRATIC LEADERSHIP IS DIVIDED ON THE TRADE PACT YESTERDAY HOUSE SPEAKER THOMAS FOLEY D WASH PREDICTED THE AGREEMENT WOULD PASS BY A CLOSE VOTE AND HE SAID HE'D ACTIVELY WORK TO THAT END IN CONTRAST HIS TOP TWO LIEUTENANTS MAJORITY LEADER RICHARD GEPHARDT D MO AND MAJORITY WHIP DAVID BONIOR D MICH ARE OPPOSED ALSO YESTERDAY TOP ADMINISTRATION OFFICIALS MET ON CAPITOL HILL WITH A BIPARTISAN GROUP OF SUPPORTERS TO BOOST THE TRADE ACCORD WHICH WOULD DISMANTLE TRADE BARRIERS AMONG THE US MEXICO AND CANADA OVER 15 YEARS THE GOOD NEWS IS WE'VE ADVANCED THE BALL TO THE FIVEYARD LINE SAID ARIZONA REP JIM KOLBE GOP LEADER OF THE PRONAFTA FORCES THE BAD NEWS IS IT'S OUR FIVEYARD LINE NOT THEIR FIVEYARD LINE 9309090029 930909 BUSINESS BRIEF WASHINGTON POST CO FIRM SELLS CABLE FRANCHISES TO TELEWEST INTERNATIONAL WASHINGTON POST CO SOLD ITS CABLETELEVISION FRANCHISES IN THE UK TO TELEWEST INTERNATIONAL A VENTURE BETWEEN CABLE COMPANY TELECOMMUNICATIONS INC AND U S WEST INC BOTH BASED IN DENVER TERMS WEREN'T DISCLOSED BUT THE WASHINGTON MEDIA CONCERN SAID IT WOULD REALIZE A GAIN OF 5 MILLION TO 10 MILLION IN THE CURRENT FISCAL THIRD QUARTER ENDING OCT 3 ALAN G SPOON THE POST'S CHIEF OPERATING OFFICER SAID IT SOLD THE FRANCHISES BECAUSE IT WAS UNWILLING TO MAKE THE VERY SUBSTANTIAL CAPITAL INVESTMENT NEEDED TO PROVIDE LOCAL LANDLINE TELEPHONE SERVICES AS WELL AS CABLE REQUIRED BY BRITISH REGULATORY OFFICIALS THE POST'S FRANCHISE AREAS INCLUDED ABOUT 421000 HOMES IN CENTRAL SCOTLAND TELEWEST ALREADY HAD 161000 CABLETV CUSTOMERS AND MORE THAN 107000 TELEPHONE ACCESS LINES IN SERVICE IN THE UK 9309090028 930909 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CLEAR CHANNEL COMMUNICATIONS INC AN OFFERING OF 19 MILLION COMMON SHARES VIA ALEX BROWN & SONS AG EDWARDS & SONS FIRST BOSTON CORP AND PAINEWEBBER INC US TURBINE CORP AN INITIAL OFFERING OF 1250000 COMMON SHARES VIA DICKINSON & CO USX CORP AN OFFERING OF FIVE MILLION SHARES OF USXDELHI GROUP COMMON STOCK VIA LEHMAN BROTHERS AND SALOMON BROTHERS INC 9309090027 930909 WHAT'S NEWS BUSINESS AND FINANCE KODAK'S BOARD WILL REVIEW A SHORT LIST OF CHIEF EXECUTIVE OFFICER CANDIDATES TODAY PEOPLE CLOSE TO THE COMPANY SAID THE CANDIDATES INCLUDE APPLE CHAIRMAN JOHN SCULLEY AT&T EXECUTIVE VICTOR PELSON GOODYEAR CHAIRMAN STANLEY GAULT EXKODAK VICE CHAIRMAN J PHILLIP SAMPER AND MEDCO CEO RICHARD BRADDOCK CLINTON OFFICIALS ESTIMATE THAT THEIR HEALTHCARE PLAN WOULD CUT THE BUDGET DEFICIT BY 91 BILLION IN THE FIRST FIVE YEARS EVEN AFTER SPENDING TENS OF BILLIONS TO COVER THE UNINSURED CS FIRST BOSTON NAMED ALLEN WHEAT PRESIDENT AND SAID IT PLANS TO ELIMINATE ITS DIFFERENT REGIONAL NAMES TO OPERATE UNDER A SINGLE NAME ECONOMIC GROWTH REMAINS SLOW TO MODERATE AND INFLATION IS WELLBEHAVED ACROSS MUCH OF THE NATION A SURVEY OF THE 12 FED BANKS SHOWS GM PLANS TO MAKE ITS RETIRED MANAGERS PAY PART OF THEIR HEALTH INSURANCE THE COMPANY IS ALSO RAISING THE MEDICAL PREMIUMS IT ALREADY CHARGES MANY OF ITS CURRENT MANAGERS STOCKS FELL AND BONDS RALLIED ON POOR ECONOMIC NEWS THE DOW JONES INDUSTRIALS FELL 1817 POINTS TO 358893 THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE 3/8 POINT ITS YIELD FELL TO 586 A 16YEAR LOW GOLD PRICES STABILIZED AFTER TUESDAY'S FALL ROSS PEROT'S FAMILY WON APPROVAL FOR A TARIFFREDUCTION ARRANGEMENT AT ITS TEXAS MANUFACTURING CENTER EVEN THOUGH PEROT ARGUES THAT CUTTING TARIFFS WITH MEXICO COULD COST MILLIONS OF AMERICANS THEIR JOBS MEANTIME THE HOUSE WHICH IS MORE HOSTILE TO NAFTA WILL VOTE ON IT BEFORE THE SENATE DOES UNILEVER AGREED TO BUY THE ICE CREAM BUSINESS OF PHILIP MORRIS'S KRAFT UNIT A MOVE THAT WOULD MAKE THE ANGLODUTCH CONCERN THE BIGGEST PLAYER IN THE US ICE CREAM MARKET BANK REGULATORS AGREED ON A STEP TO CUT THE AMOUNT OF CAPITAL THAT BANKS MUST HOLD AGAINST SMALLBUSINESS LOANS THAT THEY HAVE SOLD MERRILL LYNCH MADE SOME APPOINTMENTS IN ITS HUGE RETAIL UNIT THAT COULD POSITION THE SECURITIES FIRM BETTER FOR A MORE HOSTILE INVESTMENT CLIMATE TWO BIG CALIFORNIA UTILITIES ARE JOINING IN AN ENERGY CONSERVATION PROJECT TO PROVIDE A CUSTOMER THE ABILITY TO CHOOSE BETWEEN GAS AND ELECTRICITY TO MAXIMIZE ITS SAVINGS FRANK LORENZO SHOULDN'T BE PERMITTED TO START UP A LOWFARE AIRLINE AN ADMINISTRATIVE LAW JUDGE SAID LLOYD'S OF LONDON'S DEPUTY CHAIRMAN RESIGNED AMID FINANCIAL TROUBLES AT MERRETT HOLDINGS THE LLOYD'S UNDERWRITING GROUP THAT HE HEADS HE CITED HIS INCREASING WORKLOAD AS CHAIRMAN OF MERRETT A FAMILY BUSINESS BONDS LEHMAN BROTHERS TREASURY INDEX 570190 UP 1592 COMMODITIES OIL 1703 A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX 12626 UP 047 SPOT INDEX 12179 OFF 004 DOLLAR 10560 YEN UP 140 16130 MARKS UNCHANGED 9309090026 930909 BUSINESS BRIEF ARKANSAS BEST CORP THIRDQUARTER NET FORECAST TO BE NEAR YEARAGO RESULT ARKANSAS BEST CORP SAID IT EXPECTS THIRDQUARTER NET INCOME TO BE IN THE RANGE OF YEAREARLIER RESULTS WHEN THE COMPANY EARNED 7 MILLION OR 30 CENTS A SHARE ON REVENUE OF 2486 MILLION THE FORT SMITH ARK TRANSPORTATION HOLDING COMPANY SAID THE RESULTS WOULD EXCEED ANALYSTS' ESTIMATES THAT THE COMPANY WOULD EARN BETWEEN 21 CENTS AND 24 CENTS A SHARE FOR THE THIRD QUARTER ARKANSAS BEST SAID REVENUE AND MARGINS WERE HIGHER THAN EXPECTED IN JULY AND AUGUST AT ITS ABF FREIGHT SYSTEM INC SUBSIDIARY THE COMPANY'S MAJOR TRUCKING OPERATION THE COMPANY SAID IT WOULD INCLUDE IN ITS THIRDQUARTER RESULTS THE RETROACTIVE EFFECT OF THE INCREASE IN CORPORATE FEDERAL INCOME TAXES RECENTLY ENACTED BY CONGRESS WHILE A COMPANY SPOKESMAN WOULDN'T BE MORE SPECIFIC HE DID SAY THAT THE NEGATIVE TAX IMPACT WOULDN'T PREVENT THE COMPANY FROM REPORTING RESULTS ABOVE ANALYSTS' ESTIMATES 9309090025 930909 BUSINESS BRIEF SYLVAN FOODS HOLDINGS INC COMPANY MAY CLOSE PLANT OVER DISPUTE WITH WORKERS SYLVAN FOODS HOLDINGS INC SAID IT WILL CLOSE ITS MOONLIGHT MUSHROOMS INC PLANT IF ITS 965 WORKERS DO NOT AGREE TO WAGE AND BENEFIT REDUCTIONS THE COMPANY IN SARVER PA SAID IT FILED NOTICE WITH THE FEDERAL GOVERNMENT OF THE CLOSING AS REQUIRED BY THE FEDERAL WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT THE MUSHROOM PRODUCER HAS SET NOV 1 AS A TARGET FOR REACHING A NEW AGREEMENT OR MODIFYING THE EXISTING COLLECTIVE BARGAINING AGREEMENT THAT EXPIRES AUG 2 1994 SYLVAN SAID MOONLIGHT ONE OF SYLVAN'S TWO MUSHROOM PRODUCTION SUBSIDIARIES HAD A 99 MILLION LOSS IN THE 1993 FIRST QUARTER AFTER ADOPTION OF A NEW ACCOUNTING STANDARD AND HAS RECORDED OPERATING LOSSES SINCE MID1992 A PERSON ANSWERING THE PHONE AT THE UNITED STEELWORKERS LOCAL 8025 UNION HALL IN WORTHINGTON WHO SAID HE WAS A SPOKESMAN SAID THE UNION DECLINED TO COMMENT 9309090024 930909 TECHNOLOGY BRIEF NATIONAL SEMICONDUCTOR CORP PLANS ARE SET TO EXPAND SEMICONDUCTOR SITE IN MAINE NATIONAL SEMICONDUCTOR CORP BASED IN SANTA CLARA CALIF SAID IT IS PLANNING A 77 MILLION EXPANSION OF ITS SEMICONDUCTOR FACILITY IN SOUTH PORTLAND MAINE THE EXPANSION WILL MORE THAN DOUBLE THE PLANT'S PRODUCTION CAPACITY A SPOKESWOMAN SAID THE PLANT WILL PRODUCE COMPUTER CHIPS USED IN CELLULAR PHONES LAPTOP COMPUTERS AND WIRELESS COMMUNICATION EQUIPMENT FUNDS SPENT ON THE EXPANSION WILL BE SPREAD OUT OVER THREE YEARS AND AREN'T EXPECTED TO AFFECT THE COMPANY'S EARNINGS THE SPOKESWOMAN SAID THE EXPANDED PLANT WHICH WILL ADD 30 NEW JOBS IS EXPECTED TO BEGIN OPERATION IN THE SUMMER OF 1994 9309090023 930909 MARKETING & MEDIA PARAMOUNT BOARD MAY ACT ON POSSIBLE VIACOM DEAL NEW YORK PARAMOUNT COMMUNICATIONS INC IS EXPECTED TO DISCUSS A POSSIBLE MERGER WITH VIACOM INC AT A REGULARLY SCHEDULED MEETING OF PARAMOUNT DIRECTORS TODAY BOTH ENTERTAINMENT AND COMMUNICATIONS COMPANIES DECLINED TO COMMENT PEOPLE FAMILIAR WITH THE TALKS BETWEEN THE TWO COMPANIES SAID LAST NIGHT THAT IT ISN'T CLEAR WHETHER A FORMAL DEAL WILL BE PUT ON THE TABLE FOR A VOTE RECENTLY PARAMOUNT SHARES ROSE TO A 52WEEK HIGH OF 5775 AS RUMORS INTENSIFIED OF THE TALKS WITH VIACOM IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PARAMOUNT CLOSED AT 55 DOWN 875 CENTS VIACOM CLASS A SHARES ALSO HAVE RISEN SHARPLY IN RECENT MONTHS YESTERDAY IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE THE CLASS A SHARES CLOSED AT 6425 DOWN 1875 CENTS BOTH PARAMOUNT AND VIACOM HAVE ACKNOWLEDGED THAT THEY HAVE HAD MERGER TALKS AND THEY REPORTEDLY CAME CLOSE TO A DEAL IN RECENT MONTHS BEFORE TALKS COLLAPSED OVER PRICE AND STRUCTURE HOWEVER PEOPLE CLOSE TO THE SITUATION SAID THE TALKS RECENTLY RESUMED IN EARNEST 9309090022 930909 TECHNOLOGY BRIEF OPTICAL DATA SYSTEMS INC THIRDPERIOD NET MAY BE 30 BELOW 2NDPERIOD PROFIT OPTICAL DATA SYSTEMS INC CITING SLOW CUSTOMER ORDERS SAID ITS NET INCOME IN THE THIRD QUARTER MAY BE ABOUT 30 LOWER THAN THE PROFIT REPORTED DURING THE MOST RECENT PERIOD THE RICHARDSON TEXAS COMPUTER NETWORKING CONCERN ALSO SAID SALES MAY BE ABOUT 10 LOWER THAN SECONDQUARTER SALES WHICH TOTALED 147 MILLION OPTICAL DATA REPORTED NET INCOME OF 15 MILLION OR 19 CENTS A SHARE IN THE SECOND QUARTER DURING THE THIRD QUARTER OF 1992 THE COMPANY REPORTED EARNINGS OF 14 MILLION OR 18 CENTS A SHARE ON SALES OF 123 MILLION THE COMPANY SAID THE SLOW ORDERS PARTICULARLY IN EUROPE HAVE COME DESPITE WHAT IT CALLED HIGH ACCEPTANCE FOR ITS NEW INFINITY SERIES OF COMPUTER NETWORKING HUBS HOWEVER THE COMPANY SAID A SIXMONTH TO 12MONTH LAG IN THE ADOPTION OF NEW NETWORKING PRODUCTS BY CUSTOMERS MEANS THAT THE IMPACT OF NEW INFINITY SALES WON'T BE FELT UNTIL THE END OF 1993 9309090021 930909 INTERNATIONAL BRIEF NEWS CORP BSKYB POSTS PROFIT FOR YEAR AGAINST YEAREARLIER LOSS BRITISH SKY BROADCASTING LTD SWUNG TO A PRETAX PROFIT OF 541 MILLION 834 MILLION FOR THE YEAR ENDED JUNE 30 FROM A YEAREARLIER LOSS OF 398 MILLION SALES ROSE 63 TO 3798 MILLION FROM 233 MILLION BSKYB ISN'T A PUBLICLY TRADED COMPANY RUPERT MURDOCH'S NEWS CORP IS THE LARGEST SHAREHOLDER IN BSKYB WITH BRITISH LEISURE COMPANY GRANADA GROUP PLC MEDIA COMPANY PEARSON PLC AND FRANCE'S CHARGEURS SA HOLDING THE REMAINDER BSKYB WHICH SELLS SATELLITE DISHES AND SUBSCRIPTIONS FOR ACCESS TO CHANNELS WAS FORMED IN 1990 WITH THE MERGER OF BRITISH SATELLITE BROADCASTING AND MR MURDOCH'S SKY TELEVISION ABOUT 75 OF BSKYB'S SALES WERE FROM SUBSCRIPTIONS WITH AIRTIME SALES MAKING UP THE BALANCE THE COMPANY SAID ADVERTISING REVENUE ROSE 47 IN THE YEAR BSKYB SAW A 45 RISE IN THE NUMBER OF PAYING SUBSCRIBERS AND AN INCREASE OF REVENUE EARNED PER SUBSCRIBER AFTER IT LAUNCHED A PAY SPORTS CHANNEL 9309090020 930909 BUSINESS BRIEF CANADIAN MINING & ENERGY CORP KAZAKHSTAN MINE PACT IS SET WITH URANERZBERGBAU UNIT CANADIAN MINING & ENERGY CORP AND GERMANY'S URANERZ EXPLORATION & MINING LTD SAID THEY REACHED AN AGREEMENT WITH THE REPUBLIC OF KAZAKHSTAN TO JOINTLY MINE URANIUM IN THE FORMER SOVIET STATE THE 10YEAR PACT IS WITH KAZAKH NATIONAL JOINT STOCK CO OF ATOMIC POWER ENGINEERING & INDUSTRY OR KATEP WHICH CONTROLS THE REPUBLIC'S URANIUM RESOURCES THE COMPANIES ALSO SAID THEY WILL MARKET A PORTION OF KATEP'S URANIUM WE WOULD LIKE TO BENEFIT FROM THE EXPERIENCE OF CAMECO AND URANERZ IN NEGOTIATING LONGTERM CONTRACTS SAID VICTOR YAZIKOV KATEP'S PRESIDENT INITIALLY THE COMPANIES PLAN TO INVEST 3 MILLION IN KAZAKHSTAN LAST YEAR KATEP PRODUCED 73 MILLION POUNDS OF URANIUM OR ABOUT 8 OF WORLDWIDE OUTPUT PRODUCTION BY CAMECO AND URANERZ ACCOUNTED FOR 15 AND 7 RESPECTIVELY OF THE WORLD'S OUTPUT URANERZ IS A SUBSIDIARY OF GERMAN MINING GROUP URANERZBERGBAU GMBH 9309090019 930909 BUSINESS BRIEF SOUTHWESTERN BELL CORP UNIT CALLS TWO BOND ISSUES AND WILL ISSUE TWO OTHERS TAKING ADVANTAGE OF FALLING INTEREST RATES SOUTHWESTERN BELL CORP SAID ITS SOUTHWESTERN BELL TELEPHONE CO UNIT IS REDEEMING EARLY TWO BOND ISSUES TOTALING 600 MILLION AND ISSUING TWO OTHERS TOTALING 400 MILLION THE BABY BELL WILL TAKE A ONETIME CHARGE OF ABOUT 20 MILLION OR THREE CENTS A SHARE AGAINST 1993 THIRDQUARTER EARNINGS TO COVER THE PREMIUMS AND OTHER EXPENSES ASSOCIATED WITH THE EARLY RETIREMENTS IN THE YEARAGO THIRD QUARTER THE COMPANY HAD NET INCOME OF 3856 MILLION OR 128 A SHARE NET INCLUDED A RELOCATION ACCRUAL THAT REDUCED EARNINGS BY 25 MILLION OR EIGHT CENTS A SHARE THE BELL UNIT IS CALLING 300 MILLION OF DEBENTURES MATURING SEPT 1 2018 AND PAYING 875 ANNUAL INTEREST AND 300 MILLION OF 85 DEBENTURES MATURING MARCH 15 2016 THE TWO NEW ISSUES HAVE MATURITIES OF 31 YEARS AND 11 YEARS RESPECTIVELY AND WILL PAY 6625 AND 575 ANNUAL INTEREST 9309090018 930909 STRUCTURAL DYNAMICS' SHARES LOSE 28 ON WEAK 3RDQUARTER PROFIT ESTIMATE SHARES OF STRUCTURAL DYNAMICS RESEARCH CORP PLUMMETED 525 OR 28 TO 1375 AFTER THE SOFTWARE MAKER PREDICTED THAT ITS THIRDQUARTER EARNINGS WOULD FALL SUBSTANTIALLY BELOW ANALYSTS' EXPECTATIONS OF ABOUT 18 CENTS A SHARE THE MILFORD OHIO COMPANY SAID IT NOW EXPECTS NET INCOME OF FIVE CENTS TO 15 CENTS A SHARE IN THE QUARTER REVENUE IS EXPECTED TO BE 45 MILLION TO 50 MILLION IN THE 1992 THIRD QUARTER THE COMPANY EARNED 28 MILLION OR 10 CENTS A SHARE ON REVENUE OF 377 MILLION STRUCTURAL DYNAMICS ATTRIBUTED THE WORSETHANEXPECTED PERFORMANCE TO TECHNICAL PROBLEMS THAT CAUSED A ONEMONTH DELAY IN THE INTRODUCTION OF ITS IDEAS MECHANICALDESIGN SOFTWARE AS A RESULT CUSTOMERS PUT OFF BUYING THE SOFTWARE PENDING THE COMPLETION OF BENCHMARK TESTING WHICH THE COMPANY SAYS SHOULD BE DONE BY THE END OF THE MONTH IF THE TESTS ARE SUCCESSFUL THE COMPANY COULD COMPLETE AND REALIZE SOFTWARE SALES OF 40 MILLION TO 45 MILLION THIS QUARTER SAID RONALD HOFFMAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER STRUCTURAL DYNAMICS ALSO GETS ABOUT 5 MILLION IN QUARTERLY REVENUE FROM ITS ENGINEERING CONSULTING GROUP HAD THE NEW SOFTWARE NOT BEEN DELAYED THE COMPANY WOULD HAVE HAD SOFTWARE REVENUE OF 46 MILLION TO 47 MILLION AND TOTAL REVENUE OF ABOUT 51 MILLION COMMENTING ON THE STOCK'S SLIDE IN LATE OVERTHECOUNTER TRADING YESTERDAY MR HOFFMAN SAID PEOPLE ARE VERY SENSITIVE TO TECHNOLOGY STOCKS BUT THIS IS A VERY SHORTTERM PROBLEM ONE THAT SHOULDN'T REFLECT ON THE LONGTERM STRENGTH OF THE COMPANY WE'RE JUST LOOKING AT A TIMING ISSUE MR HOFFMAN EXPECTS THAT WALL STREET ANALYSTS WILL LOWER THEIR FULLYEAR EARNINGS ESTIMATES TO 60 CENTS TO 65 CENTS A SHARE FROM 70 CENTS HE SAID HE IS COMFORTABLE WITH THOSE ESTIMATES WITH THE CAVEAT THAT WE HAVEN'T YET DONE A FOURTHQUARTER EARNINGS ESTIMATE BUT FOURTHQUARTER REVENUE IS LIKELY TO RISE 35 FROM THE 455 MILLION RECORDED IN THE 1992 FOURTH QUARTER STRUCTURAL DYNAMICS MAKES SOFTWARE THAT AUTOMATES PRODUCT DESIGN FOR AEROSPACE AUTOMOTIVE AND INDUSTRIAL MANUFACTURERS 9309090016 930909 WHO'S NEWS STEVEN HAYWORTH LEAVES BANKUNITED CORAL GABLES FLA BANKUNITED FINANCIAL SAID STEVEN D HAYWORTH RESIGNED AS CHIEF OPERATING OFFICER TO PURSUE OTHER BUSINESS INTERESTS ALFRED R CAMNER 48 YEARS OLD BANKUNITED'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ASSUMED THE ADDITIONAL DUTIES OF CHIEF OPERATING OFFICER MR HAYWORTH 37 SAID HE RESIGNED TO JOIN A GROUP THAT HAS SIGNED A LETTER OF INTENT TO ACQUIRE A SOUTH FLORIDABASED FINANCIAL INSTITUTION WHICH HE SAID HE COULDN'T YET IDENTIFY MR HAYWORTH HAS BEEN BANKUNITED'S CHIEF OPERATING OFFICER SINCE JANUARY 1990 PRIMARILY RESPONSIBLE FOR ITS PRIVATE BANKING GROUP HE WILL SERVE THE COMPANY AS A CONSULTANT FOR A BRIEF TRANSITION PERIOD BANKUNITED SAID 9309090015 930909 MOMMY WE'RE FREE' IN DEFENSE OF ASYLUM RIGHTS BY JEFFREY S CHASE FIVE YEARS AGO I MET GOLI NOT HER REAL NAME A THREEYEAROLD IRANIAN GIRL DETAINED BY THE IMMIGRATION AND NATURALIZATION SERVICE GOLI'S PARENTS WERE POLITICAL OPPONENTS OF THE AYATOLLAH KHOMEINI'S GOVERNMENT HER FATHER WAS MISSING IN IRAN EITHER KILLED OR IMPRISONED GOLI AND HER MOTHER WERE FORCED TO SEEK REFUGE IN OF ALL PLACES IRAQ THEY HAD SPENT THE LAST TWO YEARS IN A CAMP THERE GOLI WAS SMALL FOR HER AGE AND SICKLY SHE NEEDED SURGERY UNAVAILABLE TO HER IN IRAQ SHE HAD NEVER HAD A REAL HOME OR EVEN HER OWN DOLL WHEN IRAQ'S WAR WITH IRAN ENDED GOLI AND HER MOTHER WERE EXPELLED BY SADDAM HUSSEIN THEY COULD NOT RETURN TO IRAN WHERE THE WAR'S END WAS CELEBRATED WITH THE ARRESTS OF HUNDREDS OF MEMBERS OF THE MOTHER'S OPPOSITION PARTY WITH LITTLE MONEY AND NOWHERE ELSE TO GO THE MOTHER PAID A SMUGGLER TO GET HER AND HER CHILD TO THE US WITH A FALSE PASSPORT THERE THEY WOULD APPLY FOR ASYLUM A RELATIVE OF HER HUSBAND'S A PHYSICIAN LIVING IN MICHIGAN WOULD HELP THEM SETTLE AND ARRANGE FOR GOLI'S MUCHNEEDED MEDICAL CARE GOLI AND HER MOTHER WERE DETAINED ON ARRIVAL AT KENNEDY AIRPORT BY THE INS THEY WERE IMMEDIATELY SCHEDULED FOR A HEARING BEFORE AN IMMIGRATION JUDGE I WAS THEIR ATTORNEY WHEN WE MET GOLI HAD A HIGH FEVER A DOCTOR HAD PRESCRIBED ANTIBIOTICS BUT THE SECURITY GUARDS HAD NOT FOUND TIME TO PURCHASE THEM A WEEK LATER WHEN SHE HAD TAKEN THE ANTIBIOTICS THAT I INSISTED BE PROVIDED SHE FELT BETTER AND A FRIENDLIER CAPTOR PLAYED WITH THE GIRL USING HER HANDCUFFS AS A MAKESHIFT TOY THANKS TO THE RIGHTS AFFORDED BY OUR CURRENT ASYLUM LAWS GOLI AND HER MOTHER WERE RELEASED AFTER A FEW WEEKS TO LIVE WITH THEIR RELATIVES IN MICHIGAN WHEN HER MOTHER CARRIED GOLI OUTDOORS FOR THE FIRST TIME SHE CRIED MOMMY WE'RE FREE REPRESENTING ASYLUM SEEKERS ENTAILS MUCH WORK AND AGGRAVATION WITH LITTLE OR NO PAY THE REWARD IS A HAPPY ENDING I HAVE KNOWN NEARLY 100 OTHERS LIKE GOLI AND HER MOTHER WHO HAVE FOUND REFUGE HERE IN THE US AWAY FROM THE TERROR AND CHAOS REIGNING IN THEIR HOME COUNTRIES BUT RECENTLY PRESIDENT CLINTON ANNOUNCED LEGISLATION SPONSORED BY SEN EDWARD KENNEDY D MASS THAT WOULD END SUCH HAPPY ENDINGS REACTING TO A CRISIS THAT DOESN'T EXIST HE HAS DECIDED TO SHOW HIS POLITICAL TOUGHNESS BY GOING AFTER THE WORLD'S MOST VULNERABLE GROUP REFUGEES UNDER THE PRESIDENT'S BILL ASYLUM SEEKERS ARRIVING HERE WITHOUT PROPER DOCUMENTS WILL HAVE NO RIGHT TO A LAWYER OR A HEARING OR AN APPEAL THE BILL IGNORES THE FACT THAT MANY REFUGEES ARE FORCED TO ESCAPE THEIR HOMELANDS WITHOUT VALID PAPERS BECAUSE THERE IS NO TIME TO OBTAIN THEM OR BECAUSE APPLYING FOR AND CARRYING THE PROPER DOCUMENTS IS TOO DANGEROUS THERE ARE OTHER TROUBLING PROVISIONS ACCORDING TO THE NEW BILL IF REFUGEES ESCAPING CERTAIN DEATH AT HOME TRY FLEEING TO THE US ABOARD A PLANE THAT STOPS EN ROUTE IN GERMANY FOR EXAMPLE THEY WOULD IMMEDIATELY BE DEPORTED TO GERMANY EVEN IF THEY NEVER STEPPED OFF THE PLANE THERE THIS PROVISION IS SIMILAR TO ONE IN MANY WESTERN EUROPEAN NATIONS WHEREBY REFUGEES ARE EXPECTED TO SEEK ASYLUM IN THE FIRST SAFE COUNTRY THEY REACH BUT SENDING REFUGEES BACK TO A COUNTRY WHERE THEY WERE LAST PRESENT IS NO GUARANTEE THAT THEY WILL NOT BE DEPORTED TO THEIR NATION OF ORIGIN AS AN IMMIGRATION ATTORNEY I'VE HEARD HUNDREDS OF ASYLUM CLAIMS IN MY OFFICE AND IN DETENTION CENTERS IN COURTS AND AIRPORT TERMINALS ASYLUM SEEKERS ARE NOT TERRORISTS THEY ARE PEOPLE LIKE GOLI AND HER MOTHER NOR ARE THEY STATISTICS THEY ARE FLESH AND BLOOD THIS PHRASE TAKES ON ADDED MEANING WHEN THE FLESH IS MARKED WITH BULLET WOUNDS CIGARETTE BURNS AND OTHER REMNANTS OF TORTURE BEFORE VOTING ON ANY PENDING IMMIGRATION REFORM LEGISLATION OUR CONGRESSIONAL LEADERS SHOULD MEET WITH ASYLUM SEEKERS AND HEAR THEIR STORIES FIRSTHAND THE IMAGES DESCRIBED BURN INTO ONE'S CONSCIENCE AND HAUNT THE LISTENER I CAN STILL SEE THE AFGHAN TEENAGER MUCH OF WHOSE FACE WAS BLOWN OFF BY A SOVIET LAND MINE I STILL HEAR THE MUSLIM MAN FROM BOSNIA WHO WEPT AS HE TOLD ME HOW SERBIAN TROOPS STOPPED THE UNITED NATIONS BUS HE RODE HE WAS LINED UP AGAINST A WALL WITH OTHER MUSLIM MALES FOR EXECUTION THEY WERE SPARED ONLY WHEN THE WOULDBE EXECUTIONERS DISCOVERED THAT THE BUS WAS LEAVING THE COUNTRY THUS ASSISTING THEM IN THEIR ETHNIC CLEANSING AFTER FINALLY ESCAPING BOSNIA HE STOPPED BRIEFLY IN ANOTHER COUNTRY EN ROUTE TO THE US THE CLINTON LEGISLATION WOULD DEPORT HIM AND SIMILARLY THE LIBERIAN BOY I MET WHO TOLD ME HOW HE SURVIVED A MASSACRE BY A RIVAL CLAN BY LYING STILL AMONG THE CORPSES UNTIL THE ATTACKERS LEFT EVEN SOME WHO ARE SYMPATHETIC TO SUCH CASES MAY FEEL THAT THE US CANNOT ACCEPT ALL OF THE WORLD'S REFUGEES WE DON'T THERE ARE 17 MILLION REFUGEES IN THE WORLD OF THE 300 MILLION ALIENS THE INS INSPECTED LAST YEAR AT PORTS OF ENTRY ONLY 15000 APPLIED FOR ASYLUM THIS MEANS THAT 0005 OF THE PEOPLE WHO SOUGHT ADMISSION TO THE US WERE ASYLUM APPLICANTS IRONICALLY SUCH EXEMPLARS OF HUMAN RIGHTS AS IRAN AND PAKISTAN ACCEPT FAR MORE CONTRARY TO MEDIA REPORTS WE HAVE NOT LOST CONTROL OF OUR BORDERS TO TEEMING HORDES OF ASYLUM SEEKERS WHILE SOME INDIVIDUALS ABUSE THE SYSTEM THEIR NUMBER IS TOO SMALL TO JUSTIFY ALL THE ILLS ASSIGNED TO THEM BY NATIVIST ORGANIZATIONS UNDER THE PROPOSED LEGISLATION IF REFUGEES SOMEHOW MANAGED TO REACH THE US DIRECTLY THEY WOULD HAVE TO PRESENT THEIR CASES ON THE SPOT AT THE AIRPORT TO A JUNIORLEVEL INS OFFICIAL THE ASYLUM APPLICANTS WOULD HAVE NO RIGHT TO COMPILE EVIDENCE SUPPORTING THEIR REQUESTS FOR ASYLUM CALL WITNESSES OR EVEN CONSULT A LAWYER IF THIS LEGISLATION BECOMES LAW A PERSON FIGHTING A PARKING TICKET WOULD HAVE MORE RIGHTS IN OUR COUNTRY THAN A MUSLIM FLEEING CERTAIN DEATH IN BOSNIA THE ANSWER TO THE ASYLUM QUESTION IS NOT TO TURN AWAY GENUINE REFUGEES ADMINISTRATIVE IMPROVEMENTS TO PRESERVE LEGAL PROTECTIONS FOR REFUGEES ARE URGENTLY NEEDED MORE ASYLUM OFFICERS AND FASTER AND FAIRER PROCESSING OF ASYLUM CASES WOULD ELIMINATE ANY INSTANCES OF ABUSE THEY WOULD ALSO MAKE POSSIBLE MORE HAPPY ENDINGS FOR THE WORLD'S FUTURE GOLIS MR CHASE IS CHAIRMAN OF THE ASYLUM AND REFUGEE COMMITTEE OF THE AMERICAN IMMIGRATION LAWYERS ASSOCIATION NEW YORK CHAPTER 9309090014 930909 SUPERCUTS EXPANDS IN NEW YORK SAN FRANCISCO SUPERCUTS INC SAID IT PLANS TO OPEN 200 NEW STORES IN THE NEW YORK AREA IN THE NEXT THREE YEARS THE NEW STORES WILL BE FINANCED THROUGH A 30 MILLION PRIVATE PLACEMENT A SPOKESWOMAN SAID SUPERCUTS A FRANCHISER OF HAIR SALONS CURRENTLY HAS 839 STORES NATIONWIDE IN OVERTHECOUNTER TRADING YESTERDAY SUPERCUTS STOCK CLOSED AT 15 A SHARE DOWN 275 OR NEARLY 16 9309090013 930909 CSX UNIT ADDS TWO DIVISIONS RICHMOND VA CSX CORP SAID ITS CSX TRANSPORTATION UNIT ADDED NEW DIVISIONS IN LOUISVILLE KY AND JACKSONVILLE FLA THE RAIL OPERATOR SAID THE DIVISIONS WILL BE STAFFED BY EXISTING EMPLOYEES 9309090012 930909 OLD AMERICA STORES' AUGUST SALES HOWE TEXAS OLD AMERICA STORES INC SAID AUGUST SALES INCREASED 156 TO 68 MILLION FROM 59 MILLION A YEAR AGO SALES AT STORES OPEN MORE THAN ONE YEAR INCREASED 14 THE SPECIALTY RETAILER SAID SALES FOR THE 24WEEK PERIOD INCREASED 171 TO 475 MILLION FROM 406 MILLION A YEAR EARLIER SAMESTORE SALES FOR THE 24WEEK PERIOD INCREASED 18 9309090011 930909 CORPORATE FOCUS SCRAPPY SATELLITE VENTURE SETS SIGHTS ON GLOBAL GAME PANAMSAT AIMS AT INTELSAT'S MARKET AS DEREGULATION OPENS THE INDUSTRY BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL GREENWICH CONN FREDERICK LANDMAN PRESIDENT AND CHIEF OPERATING OFFICER OF PANAMSAT LP HANDS OUT A TELLING TOKEN ON BEHALF OF HIS COMPANY A YOYO SHAPED LIKE A TINY GLOBE THE WORLD ON A STRING HE GRINS FOUR YEARS AGO THINGS WERE LOOKING LESS BRIGHT FOR THE CLOSELY HELD COMPANY WHICH LAUNCHED AN 85 MILLION COMMUNICATIONS SATELLITE WITH NO CUSTOMERS WHILE PURSUING A 15 BILLION LAWSUIT AGAINST THE US ARM OF A WORLDWIDE SATELLITE CARTEL NOW MR LANDMAN 45 YEARS OLD HAS PLENTY OF REASONS TO BE PLEASED HE'S MAKING MONEY WITH SOME 40 MILLION IN REVENUE IN 1992 AND A HEFTY 424 MILLION IN CAPITAL RAISED IN AUGUST TO LAUNCH THREE NEW SATELLITES WHICH WILL MAKE THE COMPANY THE WORLD'S ONLY PRIVATE GLOBAL SATELLITE BROADCASTER AND THERE ARE HINTS OF A PUBLIC OFFERING THAT HAS SOME PROMINENT INVESTORS INTERESTED LIKE THE COMPANY'S FIRST SATELLITE THE THREE NEWCOMERS SCHEDULED FOR COMPLETION IN 1994 AND 1995 WILL BE GEOSTATIONARY LOCATED ABOUT 22300 MILES ABOVE THE EARTH THAT'S MUCH HIGHER THAN THE SMALLER SATELLITES USED FOR TELEPHONE COMMUNICATIONS PANAMSAT OFFICIALS BOAST THAT THEIR BIRDS WILL ALSO BE TECHNOLOGICALLY ADVANCED USING TECHNIQUES LIKE DIGITAL COMPRESSION WHICH PACKS MORE PROGRAMMING INTO SATELLITE TRANSPONDERS AND BEAMSHAPING A PROCESS THAT LETS SATELLITES TARGET THEIR GEOGRAPHIC AREAS MORE STRATEGICALLY THAT MAY NOT SEEM LIKE MUCH AGAINST RIVAL COMMUNICATIONS SATELLITE CORP'S PLANS TO LAUNCH NINE NEW SATELLITES AT QUARTERLY INTERVALS STARTING THIS OCTOBER COMSAT IS THE US SIGNATORY OF THE INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION OR INTELSAT A GLOBAL GOVERNMENTCORPORATE SATELLITE BROADCASTING CONSORTIUM BUT ANALYSTS SPECULATED THAT PANAMSAT HAS SOME EDGES OVER COMSAT AS A SMALL COMPETITOR IT CAN EMBRACE AND DEPLOY NEW TECHNOLOGIES MORE QUICKLY THAN AN INTERNATIONAL CONSORTIUM NOTES KEN MCGEE A TELECOMMUNICATIONS ANALYST WITH THE GARTNER GROUP IN STAMFORD CONN AND WHILE PANAMSAT IS UNLIKELY TO OVERTAKE THE INTERNATIONAL CONCERN HE SAID THEY CAN SURE MAKE INTELSAT SWEAT FINANCES TOO ARE IMPROVING LAST YEAR PANAMSAT GENERATED 403 MILLION IN REVENUE WITH NET INCOME OF 171 MILLION THAT COMPARED WITH REVENUE OF 32 MILLION AND NET INCOME OF 128 MILLION IN 1991 AND REVENUE OF 157 MILLION AND A 16 MILLION NET LOSS IN 1990 OPERATIONS ARE AT FULL TILT ITS ONE SATELLITE HAS MORE CUSTOMERS THAN WE CAN SIGN ON SAYS MR LANDMAN WITH CLIENTS RANGING FROM BRITISH BROADCASTING CORP TO NHK JAPAN BROADCASTING CORP NOW BEAMING PROGRAMS ABROAD BUSINESS COMMUNICATIONS CUSTOMERS INCLUDE THE ASSOCIATED PRESS AND THE US GOVERNMENT THE NEW SATELLITES COULD INCREASE REVENUE TENFOLD THE COMPANY PROJECTS ALTHOUGH THE PROSPECTUS TARGETS MOREMODEST REVENUE GOALS OF 1957 MILLION BY 1996 AND 3197 MILLION BY 1998 SOME CUSTOMERS ALREADY ARE NEGOTIATING FOR SPACE ON THE NEW SATELLITES BOB ROSS EXECUTIVE VICE PRESIDENT OF TURNER INTERNATIONAL A UNIT OF TURNER BROADCASTING SYSTEM INC THAT MANAGES THE COMPANY'S LATIN AMERICA ACCOUNT WITH PANAMSAT SAID THE COMPANY HAS BEEN AND CONTINUES TO BE EXTREMELY RESPONSIVE TO CUSTOMER NEEDS WE'RE VERY BULLISH ON THEM TURNER IS NEGOTIATING FOR SPACE ABOARD THE NEW PANAMSAT SATELLITES THAT WILL BROADCAST OVER ASIA AND THE INDIAN OCEAN OF COURSE THE BUSINESS HAS ITS RISKS WHILE THERE ARE AT PRESENT AN ESTIMATED 157 COMMUNICATIONS SATELLITES BROADCASTING WORLDWIDE MOST OPERATE WITHIN SINGLE COUNTRIES AND THOSE THAT OPERATE INTERNATIONALLY ARE STILL HEAVILY REGULATED A FACT THAT HAS SLOWED PRIVATECOMPANY ENTRANCE INTO THE SKY PANAMSAT WAS THE FIRST US COMPANY TO COMPETE WITH INTELSAT IN SUCH CROSSBORDER BROADCASTING WITH REVENUE OF 622 MILLION IN 1992 19 OPERATING SATELLITES AND 127 GOVERNMENT OR GOVERNMENTDESIGNATED MEMBERS INTELSAT HAS HAD AN EFFECTIVE MONOPOLY IN INTERNATIONAL BROADCASTING WITH COMPANIES LIKE PANAMSAT FORCED TO SQUEEZE THROUGH A DENSE REGULATORY NET TO START BUSINESS HENCE FINANCING SUCH PRIVATE VENTURES CAN BE EXPENSIVE PANAMSAT WILL PAY STIFF INTEREST RATES FOR ITS RECENT BORROWING 975 FOR 175 MILLION OF SENIOR SECURED NOTES AND 1137 FOR 460 MILLION OF SENIOR NOTES SOLD AT A DISCOUNT AND PAYING NO INTEREST UNTIL 1998 SOME OF THE ENTHUSIASM OVER THE DEAL WAS LIKELY FUELED BY VISIONS THAT PANAMSAT COULD BE THE MCI OF THE SATELLITE WORLD RIDING A WORLDWIDE WAVE OF TELECOMMUNICATIONS DEREGULATION PANAMSAT HAS BEEN VERY SUCCESSFUL IN COMPETING WITH INTELSAT IN THE ATLANTIC AND THERE ARE REGULATORY CHANGES HAPPENING IN PACIFIC AND INDIAN OCEAN REGIONS THAT ARE ENCOURAGING SAYS TIMOTHY LOGUE A SPACE AND TELECOMMUNICATIONS ANALYST WITH THE WASHINGTON LAW FIRM OF REID & PRIEST THE ANALOGY WITH MCI IS PROBABLY APT ALTHOUGH WHETHER IT WILL TURN OUT TO RESHAPE TELECOMMUNICATIONS AS MUCH AS MCI DID REMAINS TO BE SEEN HE ADDS STILL THE COMPANY'S UNIQUE STATUS MAY NOT LAST VERY LONG WITH DEREGULATION PERMITTING MORE COMPETITION WITH INTELSAT AND WITH PRIVATE COMPANIES MOVING TO PROVIDE TELEPHONE SERVICE THROUGH PUBLIC NETWORKS NEW COMPETITION IS EMERGING COLUMBIA COMMUNICATIONS CORP WASHINGTON DC CONTRACTS FOR SPACE ABOARD NATIONAL AERONAUTIC AND SPACE ADMINISTRATION SATELLITES TO BROADCAST IN THE PACIFIC RIM AND ORION NETWORK SYSTEMS INC OF ROCKVILLE MD HAS PLANS TO LAUNCH OVER THE ATLANTIC IN 1994 AND 1995 OTHER SUCH VENTURES ARE LIKELY TO FOLLOW FOR NOW PAMAMSAT OFFICIALS CLEARLY ENJOY THEIR STATUS AS INDUSTRY MAVERICKS LED BY RENE ANSELMO 67 THE COMPANY'S FOUNDER CHAIRMAN AND 50 OWNER THEY MADE SPARKS IN 1989 WITH A HIGHLY PUBLICIZED ANTITRUST SUIT AGAINST COMSAT PANAMSAT CHARGED THAT THE COMPANY WHICH OWNS 23 OF INTELSAT TRIED TO HAMPER COMPETITION IN THE COMMERCIAL SATELLITE BUSINESS THROUGH PREDATORY PRICING AND OTHER PRACTICES COMSAT OFFICIALS DENY THE CHARGES THE WHOLE SUIT IS FRIVOLOUS SAID WARREN ZEGER A COMSAT VICE PRESIDENT AND ITS GENERAL COUNSEL THESE RELATIVE NEWCOMERS AND JOHNNYCOMELATELIES HAVE BEEN SPENDING THEIR TIME DENIGRATING ONE OF THE GREAT AMERICAN CORPORATIONS A FEDERAL COURT DECISION DISMISSED THE PANAMSAT CHARGES IN 1990 HOLDING THAT COMSAT IS PROTECTED FROM ANTITRUST SUITS IN ITS ROLE AS AN INTELSAT REPRESENTATIVE PANAMSAT HAS SINCE FILED AN AMENDED SUIT AGAINST COMSAT'S CORPORATE RATHER THAN GOVERNMENTAL ENTITY AND SAYS THE CASE IS GOING FORWARD MR ANSELMO ALSO HAS HAD FEUDS OVER HIS BUSINESS TIES TO MEXICAN MEDIA ENTREPRENEUR EMILIO AZCARRAGA WHOSE MEXICAN MEDIA COMPANY GRUPO TELEVISA OWNS THE OTHER 50 OF PANAMSAT PANAMSAT OFFICIALS STRESS THAT THE MEXICAN COMPANY EXERTS NO CONTROL 9309090010 930909 WHO'S NEWS WESTERN CO OF NORTH AMERICA WESTERN CO OF NORTH AMERICA HOUSTON THOMAS R HIX WAS NAMED SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF THIS OILFIELD SERVICES COMPANY MR HIX SUCCEEDS SAM R MORROW WHO RESIGNED THOSE POSITIONS TO PURSUE OTHER INTERESTS EFFECTIVE OCT 1 MR HIX WAS EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF OCEANEERING INTERNATIONAL INC 9309090009 930909 WHO'S NEWS H&R BLOCK INC H&R BLOCK INC KANSAS CITY MO DONNA R ECTON 46YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VAN HOUTEN NORTH AMERICA INC AND ANDES CANDIES INC WAS NAMED A DIRECTOR OF THIS INCOME TAX SERVICE CONCERN SUCCEEDING THEKLA R SHACKELFORD WHO RESIGNED 9309090008 930909 US TO PUSH OPEN MARKETS AS TALKS WITH JAPAN START WASHINGTON THE US PLANS TO PRESS JAPAN TODAY TO OPEN ITS MARKETS AS THE FIRST ROUND OF DISCUSSIONS BEGINS UNDER THE SOCALLED FRAMEWORK TALKS TO ENHANCE US EXPORTS TO JAPAN JAPAN FACES CONTINUOUS PRESSURE FROM THE US TO BUY MORE US AUTOS AND AUTO PARTS SAID HIROKAZU HAYASHI THE AUTO NEGOTIATOR FOR JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WHO IS IN WASHINGTON FOR THE TALKS US OFFICIALS SAID THEY EXPECT JAPANESE CAR MAKERS IN THE US AND JAPAN TO MAKE GOOD ON THEIR PLEDGE TO PURCHASE 19 BILLION OF US AUTO PARTS IN THE YEAR ENDING MARCH 30 1994 AND TO AGREE TO MORE AMBITIOUS PURCHASE GOALS IN LATER YEARS THE JAPANESE GOVERNMENT HAS THE ABILITY TO INFLUENCE JAPANESE AUTO COMPANY BEHAVIOR SAID A SENIOR US TRADE OFFICIAL WE WANT THEM TO CONTINUE TO DO THAT THE TALKS TODAY WILL BE CONDUCTED BY TOP OFFICIALS FROM MITI AND THE MINISTRY OF FOREIGN AFFAIRS AND THEIR US COUNTERPARTS LED BY WHITE HOUSE ECONOMIC OFFICIAL BOWMAN CUTTER US OFFICIALS HAVEN'T YET DECIDED ON WHAT CONCRETE DEMANDS TO MAKE OF JAPAN ALTHOUGH THEY SAID THEY WILL CONCENTRATE ON THE AUTO AND INSURANCE MARKETS AND ON GOVERNMENT PROCUREMENT TODAY'S TALKS WILL FOCUS ON JOINT TECHNOLOGY PROJECTS WHILE THE HARD BARGAINING OVER EXPORTS WILL BEGIN LATER THIS MONTH IN SEPARATE TALKS 9309090006 930909 REVIEW & OUTLOOK EDITORIAL THE HOMESTEAD ECONOMY WORD THAT WHITE HOUSE AIDES ARE TRYING TO COME UP WITH WAYS TO SPUR THE ECONOMY COINCIDED THIS WEEK WITH A DISPLAY OF PRESIDENTIAL PIQUE IN HOMESTEAD FLORIDA MAYBE THE TWO EVENTS ARE MORE THAN A COINCIDENCE PRESIDENT CLINTON BLEW HIS COOL ON MONDAY AFTER A SPEECH AT HURRICANEWHIPPED HOMESTEAD AIR FORCE BASE WHERE HE WAS TRYING TO ADVERTISE HIS AUTUMN AGENDA AS THE PRESIDENT SHOOK HANDS IN THE CROWD AN UNIDENTIFIED MAN SHOUTED CAN YOU NAME ONE COUNTRY THAT TAXED AND SPENT ITSELF INTO PROSPERITY THIS IS WHAT MAJOR NEWSPAPERS HAVE TAKEN TO CALLING A RUSH LIMBAUGH QUESTION AFTER THE RADIO HOST WHO BROADCASTS IDEAS THAT PEOPLE CAN'T FIND IN THOSE SAME NEWSPAPERS MR CLINTON WAS APPARENTLY ALSO STRUCK BY THE QUESTION BECAUSE HE SHOUTED BACK CAN YOU NAME ONE COUNTRY THAT HAS BORROWED AND SPENT ITSELF INTO PROSPERITY WENT FROM A ONE TO A FOURTRILLIONDOLLAR DEBT NAME ONE COUNTRY THE PRESIDENT CONTINUED IN WHICH TAX CUTS HAVE SPURRED PROSPERITY AFTER STARTING TO WALK AWAY MR CLINTON COULDN'T RESIST RETURNING TO JAWBONE THE POOR FELLOW ABOUT WHO TAXED AND SPENT MORE IN THE LAST 12 YEARS REPUBLICAN PRESIDENTS OR DEMOCRATIC CONGRESSES ANSWER CLUCKED MR CLINTON THE LAST TWO PRESIDENTS NOW WE CAN UNDERSTAND WHY MR CLINTON WOULD SEEK COMFORT IN HIS OLD CAMPAIGN THEME OF BLAMETHE1980S THOUGH HE'S BEEN PRESIDENT FOR SEVEN MONTHS NOW AND HE'S PASSED HIS ECONOMIC RECOVERY PLAN THE ECONOMY LOOKS LESS THAN TERRIFIC EMPLOYERS CUT PAYROLLS BY 39000 IN AUGUST WHILE THE GOVERNMENT'S FORECASTING INDEX FELL A BIT IN JULY AFTER A BIG DECLINE IN MAY AND A MERE BLIP OF A RISE IN JUNE NEWHOME SALES DIPPED AS DID CONSTRUCTION SPENDING PERSONAL INCOME FACTORY ORDERS AND CONSUMER CONFIDENCE NO WONDER MR CLINTON IS GETTING TESTY WHILE LABOR SECRETARY ROBERT REICH TELLS REPORTERS HE'S SEARCHING FOR STIMULUS MAYBE MR REICH COULD START BY LOOKING AT THE IMPACT OF HIS OWN PRESIDENT'S POLICIES AS THE NEARBY CHART SHOWS THE LATEST COMMERCE DEPARTMENT FIGURES FOR ECONOMIC GROWTH HARDLY FLATTER THE CLINTON ERA SEE ACCOMPANYING ILLUSTRATION WSJ SEPT 9 1993 THEY SHOW WE ACTUALLY HAD A ROARING RECOVERY GOING IN LATE 1992 57 IN THE FOURTH QUARTER BUT THAT THE BOTTOM FELL OUT AFTER MR CLINTON TOOK OFFICE NO DOUBT SOME OF THAT FOURTHQUARTER GROWTH WAS ARTIFICIALLY STOLEN FROM THIS YEAR'S FIRST HALF AS AMERICANS INCLUDING HILLARY CLINTON REALIZED DISCRETIONARY INCOME TO AVOID MR CLINTON'S WELLADVERTISED TAX HIKE AND 1993'S FIRSTHALF GROWTH OF 15 OR SO COULD ALSO BE REVISED UPWARD BUT SOMETHING ELSE HAPPENED THIS YEAR TO BLUNT A GROWING ECONOMY AND WHATEVER IT IS CAN'T BE BLAMED ON THE LAST 12 YEARS OUR OWN VIEW IS THAT MR CLINTON'S TAX INCREASES HAVE HURT BOTH BUSINESS INCENTIVES AND CONSUMER CONFIDENCE WHILE IRA MAGAZINER'S INCREDIBLE LOOMING HEALTHCARE MANDATE SUPPRESSES JOB CREATION ONLY A BRAVE EMPLOYER HIRES NEW WORKERS WHEN HE HAS NO IDEA HOW MUCH THEY WILL COST WE DO GIVE THE CLINTON TEAM HIGH MARKS FOR GIVING THE FEDERAL RESERVE A PASS A FACT THAT HAS HELPED PRODUCE THE MARKED PLUNGE IN LONGTERM INTEREST RATES YET IT'S HARDLY REASSURING THAT EVEN LOWER RATES DON'T SEEM TO BE LIFTING THE REAL ECONOMY AND EVEN THE BUOYANT STOCK MARKET HAS TAKEN A HIT THIS WEEK CAMPAIGN RHETORIC ASIDE MAYBE MR CLINTON WILL YET HAVE TO RETURN TO THE FOLK WISDOM OF THE FELLOW FROM HOMESTEAD FOR IF HE HAD ASKED US ABOUT COUNTRIES THAT PROSPERED AFTER TAX CUTS WE'D HAVE TOLD HIM YES THERE WAS GERMANY UNDER ADENAUER JAPAN FROM THE 1950S ON AND EVEN THE US FIRST UNDER JFK IN THE 1960S AND LATER UNDER RONALD REAGAN STRANGER THINGS HAVE HAPPENED 9309090005 930909 WHO'S NEWS IBM APPOINTS HENKEL OF GERMAN UNIT TO TOP EUROPE JOB RIVAL FOR POST QUITS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON INTERNATIONAL BUSINESS MACHINES CORP NAMED THE HEAD OF ITS GERMAN SUBSIDIARY TO ITS TOP JOB IN EUROPE APPARENTLY PROMPTING A MAIN RIVAL FOR THE POST TO QUIT AND JOIN A COMPETITOR HANSOLAF HENKEL 53YEAROLD PRESIDENT OF IBM GERMANY WAS NAMED TO SUCCEED RENATO RIVERSO 59 AS IBM'S TOP EXECUTIVE IN EUROPE EARLY NEXT YEAR EFFECTIVE IMMEDIATELY HE WAS APPOINTED AS MR RIVERSO'S DEPUTY THE DEPARTURE OF MR RIVERSO WHO HITS THE NORMAL IBM RETIREMENT AGE OF 60 IN FEBRUARY HAD BEEN EXPECTED IBM INSIDERS DESCRIBED MR HENKEL AS A TOUGH TASKMASTER BUT SAID THEY DON'T EXPECT HIM TO BRING ANY MAJOR CHANGES IN BUSINESS STRATEGY THE IBM UNIT HE WILL HEAD LAST YEAR PRODUCED 39 OF THE COMPANY'S 6452 BILLION IN REVENUE AND A 173 BILLION NET LOSS BUT PIERRE HESSLER 49 OFTEN RUMORED INSIDE IBM AS MR HENKEL'S MAIN RIVAL FOR THE TOP EUROPEAN JOB QUIT TO TAKE A SENIOR POST AT IBM'S BIGGEST COMPETITOR IN THE EUROPEAN COMPUTERSOFTWARE AND SERVICES MARKET FRANCE'S CAP GEMINI SOGETI SA HE WAS NAMED DEPUTY GENERAL MANAGER A NO 3 SLOT IN THE MANAGEMENT HIERARCHYAT CAP GEMINI AND AT ITS PARENT COMPANY SOGETI SA AN IBM EUROPE SPOKESMAN DENIED MR HESSLER LEFT BECAUSE HE HAD BEEN PASSED OVER FOR THE EUROPEAN CHAIRMANSHIP AND MR HESSLER WAS SAID TO BE ON VACATION AND UNAVAILABLE FOR A COMMENT MESSRS RIVERSO AND HENKEL AFTER FLYING TOGETHER FROM STUTTGART GERMANY TO PARIS YESTERDAY TO ANNOUNCE THE SUCCESSION TO IBM MANAGERS DIDN'T RETURN CALLS SEEKING A COMMENT BUT THE COMPANY'S INSISTENCE THAT MR HESSLER LEFT MERELY FOR GREENER PASTURES AT CAP GEMINI DIDN'T STOP INDUSTRY ANALYSTS FROM SPECULATING ABOUT A SUCCESSION STRUGGLE MR HENKEL GOT THE NOD AND MR HESSLER DID WHAT HONORABLE PEOPLE DO WHEN THEY ARE BYPASSED ON THE PROMOTION LADDER SAID ROBERT DJURDJEVIC PRESIDENT OF ANNEX RESEARCH INC A PHOENIX ARIZ MARKETRESEARCH FIRM THAT TRACKS IBM WORLDWIDE WITH MR HENKEL NOW NOMINATED IBM OFFICIALS CONTACTED AROUND EUROPE SAID THEY EXPECT THEIR NEW BOSS TO BE TOUGH AT A TIME WHEN THE COMPANY'S ONCEBOOMING EUROPEAN OPERATIONS ARE FARING EVEN WORSE THAN THE US BUSINESS THIS MAN IS VERY STRONG SAID ONE IBM EXECUTIVE WHEN HE BELIEVES SOMETHING HAS TO BE DONE HE EXECUTES IN HIS SIX YEARS AT THE TOP OF IBM GERMANY MR HENKEL MADE A NAME FOR HIMSELF AS AN OUTSPOKEN PUBLIC CRITIC OF GERMAN WORKING HABITS AND AN AXEWIELDER INSIDE THE COMPANY UNDER MR HENKEL'S TENURE IN THE LATE 1980S IBM'S SINDELFINGEN SEMICONDUCTOR PLANT BECAME ONE OF THE FIRST FACTORIES IN GERMANY TO DEFY NORMAL LABOR PRACTICES AND STAY OPEN ON SUNDAYS AND LAST YEAR HE RATTLED GERMAN LABOR RELATIONS BY DECLARING THAT HE WOULDN'T ANY LONGER CONDUCT WHITECOLLAR CONTRACT NEGOTIATIONS WITH ONE OF THE COUNTRY'S MOST POWERFUL UNIONS IG METALL AS PART OF IBM'S WORLDWIDE JOB CUTS MR HENKEL HAS SLATED IBM'S GERMAN WORK FORCE TO FALL TO 21500 BY YEAR END DOWN FROM 27700 IN DECEMBER 1991 HE ORDERED PRODUCTION HALTED AT TWO OF IBM'S FOUR GERMAN FACTORIES AND AS AT IBM EVERYWHERE IN GERMANY HE SUCCESSFULLY PUSHED TO INCREASE REVENUE DERIVED FROM HIGHERPROFIT COMPUTER SOFTWARE AND SERVICES DEEMPHASIZING HARDWARE BUT THE FINANCIAL RESULTS AT IBM GERMANY HAVE BEEN ABOUT AS POOR AS ELSEWHERE IN THE IBM EMPIRE AFTER 892 MILLION MARKS 554 MILLION IN RESTRUCTURING COSTS THE GERMAN UNIT LAST YEAR RECORDED A NET LOSS OF 443 MILLION MARKS ON REVENUE OF 138 BILLION MARKS SEPARATELY IBM SAID MR HENKEL'S DEPUTY IN GERMANY EDMUND HUG 50 WILL SUCCEED MR HENKEL AS PRESIDENT OF THE GERMAN UNIT 9309090004 930909 FEDERAL EXPRESS NOISEKIT ORDERS MEMPHIS TENN FEDERAL EXPRESS CORP SAID IT RECEIVED FIRM ORDERS FROM FOUR COMPANIES FOR 14 AIRCRAFT NOISEREDUCTION KITS THE AIREXPRESS COMPANY DIDN'T DISCLOSE THE VALUE OF THE ORDERS A FEDERAL EXPRESS SPOKESMAN HOWEVER SAID THE LIST PRICE FOR THE SOCALLED STAGE 3 KITS RUNS FROM ABOUT 16 MILLION TO 24 MILLION THE EQUIPMENT IS USED TO REDUCE THE NOISE OF AIRCRAFT ENGINES TO COMPLY WITH FEDERAL GOVERNMENT STANDARDS 9309090003 930909 FLOUR POWER MEXICO'S CAMPAIGN TO MODERNIZE SPARKS BATTLE OVER TORTILLAS BIG MILLER'S NEW PROCESS WINS OFFICIAL SUPPORT HURTING TINY OLDSTYLE MAKERS DOUBTS ABOUT NAFTA'S GAINS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY ROBERTO GONZALEZ BARRERA WANTS TO MODERNIZE THAT ANCIENT STAPLE OF MEXICAN COCINA THE TORTILLA MR GONZALEZ OR DON ROBERTO AS THE COURTLY CORPORATE CHIEFTAIN IS KNOWN IS TRYING TO PERSUADE THOUSANDS OF NEIGHBORHOOD TORTILLA SHOPS TO MAKE THE UNLEAVENED CORNMEAL CAKES WITH FLOUR MANUFACTURED IN THE HIGHTECH FACTORIES OF HIS COMPANY GRUPO INDUSTRIAL MASECA SA HE SAYS HIS PATENTED CORNPROCESSING METHOD IS MORE EFFICIENT THAN THE TRADITIONAL SYSTEM IN WHICH THE TORTILLA SHOPS CLEAN COOK AND MILL THE GRAIN THEMSELVES THE EXPANSION OF MASECA'S CURRENT 20 SHARE OF THE 3 BILLION MEXICAN TORTILLA MARKET MR GONZALEZ SAYS WILL BE PART OF THE INEXORABLE MARCH OF PROGRESS SMALL BUSINESS CAN'T STAND IN THE WAY OF SUPERIOR TECHNOLOGY HE SAYS SITTING IN HIS OFFICE IN THE FASHIONABLE ZONA ROSA DISTRICT DON'T TRY TELLING THAT TO MOISES VALLEZA THE OWNER OF A TINY TORTILLA SHOP IN THE CENTRAL CITY OF LEON MASECA FLOUR PRODUCES TORTILLAS THAT ARE FRAGILE AND PALLID SAYS MR VALLEZA WHOSE BUSINESS IS CALLED YUM KAX AFTER ONE OF THE INDIGENOUS GODS OF MAIZE I WILL STICK TO THE OLD WAY MR VALLEZA'S MILLING TECHNIQUE IS ESSENTIALLY THE SAME AS THAT USED FOR AGES HE BOILS THE CORN IN A STEEL TUB AND THEN GRINDS THE GRAIN INTO DOUGH WITH A STONE WHEEL A NOISY MACHINE STAMPS THE DOUGH INTO FLAT OVALS WHICH ARE PICKED UP BY A CONVEYOR BELT AND LIGHTLY BRONZED OVER A GAS FLAME CUSTOMERS QUEUE UP TO BUY THE TORTILLAS FRESH BUT THE PERSISTENCE OF MASECA IN THE FACE OF RESISTANCE FROM THE SMALL MILLERS HAS SPARKED WHAT HAS COME TO BE CALLED THE TORTILLA WAR A NOHOLDSBARRED BATTLE FOR CONTROL OF MEXICO'S FIFTHLARGEST INDUSTRY SOME SEE THE TORTILLA WAR AS AN ALLEGORY FOR THE CHANGES NOW ROILING MEXICAN INDUSTRY BY OPENING MEXICO'S ECONOMY TO FOREIGN COMPETITION DEREGULATING DOMESTIC INDUSTRIES AND SELLING PUBLIC ASSETS TO THE PRIVATE SECTOR PRESIDENT CARLOS SALINAS DE GORTARI WHOSE ECONOMIC BATTLE CRY IS LA MODERNIDAD HAS PUT A PREMIUM ON INDUSTRIAL EFFICIENCY THAT HAS HELPED BIG BUSINESS GROW EVEN BIGGER BUT THOUSANDS OF TOY MAKERS SHOEMAKERS TAILORS AND OTHER TRADESMEN HAVE GONE UNDER SWAMPED BY THE MODERNIST TIDE THROUGH GRAIN SUBSIDIES AND PRICE CONTROLS ON TORTILLAS THE GOVERNMENT OF PRESIDENT SALINAS IS ACTIVELY PROMOTING THE CONVERSION TO CORN FLOUR IN 1991 CONASUPO THE PUBLIC AGENCY THAT DISTRIBUTES BASIC FOODS SAID IT GRADUALLY WOULD STOP SUPPLYING THE TORTILLA MILLERS WITH DISCOUNTPRICED CORN IN ANY PART OF THE COUNTRY WHERE A NEW CORNFLOUR FACTORY WAS BUILT IF THE TORTILLA MILLERS DIDN'T SWITCH TO FLOUR THEY COULD GO DIRECTLY TO CORN PRODUCERS AND BUY GRAIN AT THE HIGHER MARKET PRICE BUT THE MEXICAN COMMERCE MINISTRY WHICH SETS PRICES SAID IT WOULDN'T LET THE TORTILLA MILLERS PASS THE HIGHER GRAIN PRICE ONTO THE CONSUMER MR GONZALEZ WHO IS IN HIS 60S ISN'T WASTING THIS OPPORTUNITY TO CONVERT THE RIVAL TORTILLA MAKERS INTO HIS CUSTOMERS USING CAPITAL RAISED FROM MASECA'S 1990 WALL STREET EQUITY OFFERING DON ROBERTO HAS BEGUN A SEVENPLANT EXPANSION THAT WILL INCREASE MASECA'S PRODUCTION VOLUME 90 BY THE END OF NEXT YEAR THIS EXPANSION MEANS THAT THERE IS LITTLE CHOICE FOR THE TORTILLA INDUSTRY BUT TO CONVERT TO FLOUR SAYS MANUEL VILLAGOMEZ PRESIDENT OF THE NATIONAL CONFEDERATION OF MICROINDUSTRY IF GOVERNMENT SUPPORT ISN'T ENOUGH TO HELP MASECA WIN OVER THE OLDSTYLE MILLERS DON ROBERTO CAN ALSO COUNT ON VAST RESOURCES WITHIN HIS FARFLUNG BUSINESS EMPIRE IF A TORTILLA SHOP NEEDS THE TORTILLAMAKING MACHINES REQUIRED TO PROCESS MASECA FLOUR IT CAN BUY ONE FROM DON ROBERTO'S FACTORY IF THE SHOP NEEDS A LOAN TO FINANCE THE PURCHASE IT CAN GET THAT FROM THE LARGE BANK THAT DON ROBERTO RECENTLY PURCHASED FROM THE GOVERNMENT SOME MEXICANS FEAR THAT THE COUNTRY IS CREATING AN ECONOMY DOMINATED BY A HANDFUL OF WEALTHY POLITICALLY CONNECTED INDUSTRIALISTS MEN LIKE MR GONZALEZ THEY CITE THE NUMBER OF MEXICANS ON THE FORBES BILLIONAIRE'S LIST THIS YEAR WHICH HAS JUMPED TO 13 FROM ONLY TWO IN 1991 AND THEY FRET THAT THIS SMALL INDUSTRIAL ELITE WILL MONOPOLIZE THE ECONOMIC BENEFITS THAT ARE EXPECTED TO COME TO MEXICO IF THE US CONGRESS APPROVES THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT THE MASECA CHAIRMAN SAYS THE LITTLE TORTILLA MILLERS ARE JUST CRYING OVER THE LOSS OF A SUBSIDY THEY HAVE LONG OBTAINED WHEN BUYING GOVERNMENT CORN THEY HAVE DADDY GOVERNMENT GIVE THEM EVERYTHING SAYS MR GONZALEZ STILL THE GOVERNMENT COMPENSATES MASECA FOR HIGHER GRAIN COSTS THROUGH A REBATE REPRESENTING ABOUT 30 OF THE COMPANY'S 465 MILLION IN REVENUE LAST YEAR MEXICAN FARMERS ARE THE ULTIMATE BENEFICIARIES OF THESE SUBSIDIES MOREOVER ONE DOESN'T HAVE TO SPEND MUCH TIME WITH DON ROBERTO TO SEE THAT HE HIMSELF IS NO STRANGER TO DADDY GOVERNMENT SITTING IN ON AN INTERVIEW IN DON ROBERTO'S OFFICE IS ROMEO FLORES CABALLERO A FORMER RULINGPARTY CONGRESSMAN WHO HAS JUST BEEN HIRED BY MASECA DON ROBERTO INTERRUPTS THE CONVERSATION TO TAKE A CALL FROM THE SUBSECRETARY OF FINANCE GUILLERMO ORTIZ WHAT'S HAPPENING MY VERY GOOD FRIEND GUILLERMO HE BELLOWS MR GONZALEZ HAS CONTACTS IN EVEN HIGHER PLACES RAUL SALINAS LOZANO A FORMER SENATOR AND FATHER OF MEXICO'S PRESIDENT IS AN OLD FRIEND FROM MR GONZALEZ'S HOME STATE OF NUEVO LEON DON ROBERTO ALSO HAS TIES TO THE AGRICULTURE MINISTER CARLOS HANK GONZALEZ WHOSE SON HAS BEEN MARRIED TO DON ROBERTO'S DAUGHTER FOR 24 YEARS THIS HAS LED THE TORTILLA MILLERS TO ACCUSE HIM OF AMIGUISMO OR CRONYISM BUT MR GONZALEZ SAYS HE HASN'T USED THESE CONTACTS TO OBTAIN PREFERENTIAL TREATMENT HE SAYS THE GOVERNMENT IS MOVING TO GIVE HIM STRONGER COMPETITION BY PRIVATIZING THE STATEOWNED CORNFLOUR PRODUCER THAT CONTROLS MOST OF THE 30 OF THE CORNFLOUR MARKET NOT IN MASECA'S HANDS HE ALSO NOTES THAT THE GOVERNMENT IS OFFERING SMALL TORTILLA MAKERS LOANS TO FINANCE THE CONVERSION MR GONZALEZ WAS THE UNDERDOG HIMSELF WHEN HE STARTED OUT WITH A SINGLE MILL IN THE 1940S HE AND SOME TECHNOLOGICALLY INCLINED PARTNERS DEVELOPED A FLOURMAKING PROCESS IN WHICH CORN IS DEHYDRATED WITH A 750DEGREE BLAST OF HEAT DON ROBERTO ENJOYED SUCCESS MARKETING HIS CORN FLOUR TO TORTILLA SHOPS IN THE MORE ECONOMICALLY DEVELOPED STATES OF NORTHERN MEXICO HE ALSO CONTROLS MISSION FOODS THE LARGEST TORTILLAMAKING COMPANY IN THE US BUT IN MOST PARTS OF MEXICO DON ROBERTO WAS HARDPRESSED TO COMPETE WITH SMALL TORTILLA MAKERS WHO WERE CLOSELY ALLIED TO THE RULING INSTITUTIONAL REVOLUTIONARY PARTY ANYONE WANTING TO OPEN A TORTILLA OUTLET NEEDED TO OBTAIN MANY PERMITS NOT TO MENTION HAVING SOME FRIENDS IN THE MILLERS' TRADE UNION THE BUSINESS WAS HIGHLY POLITICAL AND NOT VERY HONEST SAYS ECONOMIST ROBERTO VASQUEZ THE POLITICAL BALANCE BEGAN SHIFTING IN MASECA'S FAVOR WHEN A NEW GENERATION OF IVY LEAGUETRAINED TECHNOCRATS ASCENDED TO KEY POSITIONS IN GOVERNMENT IN THE LATE 1980S SOME OF THEM DON'T EVEN EAT TORTILLAS SAYS MR VILLAGOMEZ THE SMALLBUSINESS LEADER IN 1991 THE EFFICIENCYMINDED TECHNOCRATS ELIMINATED THE WELTER OF REGULATIONS THAT HAD MADE OPENING A TORTILLA SHOP SO DIFFICULT AT THE SAME TIME THE GOVERNMENT BEGAN TO PERCEIVE BENEFITS IN A CONVERSION TO CORN FLOUR A RECENT MEXICAN COMMERCE MINISTRY STUDY FOUND THAT THE INDUSTRIALIZATION OF TORTILLAMAKING ALLOWS THE ACHIEVEMENT OF ECONOMIES OF SCALE SUBSTANTIALLY REDUCES COSTS OF PRODUCTION TRANSPORT AND STORAGE AND INCORPORATES BETTER TECHNOLOGIES THE MASECA PROCESS ALSO CUT WASTE OF CORN BY 20 REDUCING MEXICO'S DEPENDENCE ON GRAIN IMPORTS THE BIGGEST ADVANTAGE OF CORN FLOUR ITS ADVOCATES SAY IS THAT IT DOES LESS HARM TO THE ENVIRONMENT THAN THE OLD MILLING METHOD MASECA SAYS ITS PROCESS REQUIRES ABOUT HALF THE GAS WATER AND ELECTRICITY USED IN THE TRADITIONAL METHOD THE MORE TALK THERE IS ABOUT THE ECOLOGICAL PROBLEMS PRODUCED BY THE OLD INDUSTRY THE MORE CONSCIOUSNESS THERE IS OF THE NEED TO MODERNIZE SAYS MR GONZALEZ PERHAPS BUT FEW ECOLOGISTS PUT TINY TORTILLA MILLERS ANYWHERE NEAR THE TOP OF THE LENGTHY LIST OF MEXICO'S ENVIRONMENTAL WOES IN MEXICO CITY PERHAPS THE MOST POLLUTED CITY IN THE WORLD THREE MILLION AUTOMOBILES AND 35000 FACTORIES ARE THE BIGGEST ENVIRONMENTAL OFFENDERS THE 5000 OR SO TORTILLA SHOPS EXPERTS SAY ARE COMPARATIVELY MINOR POLLUTERS TORTILLA SHOPS ARE A VERY SMALL PART OF A VERY LARGE PROBLEM SAYS HUMBERTO BRAVO A POLLUTION EXPERT AT MEXICO'S NATIONAL UNIVERSITY MEANWHILE MASECA'S OWN ENVIRONMENTAL RECORD IS HARDLY SQUEAKY CLEAN IN JUNE AUTHORITIES IN MR GONZALEZ'S HOMETOWN OF MONTERREY FINED MASECA FOR ILLEGALLY DUMPING UNTREATED WASTE WATER EVEN THOUGH SOME EXPERTS THINK THE GOVERNMENT AND MASECA ARE OVERSTATING THE BENEFITS OF CORN FLOUR THE CONVERSION CAMPAIGN IS MOVING FULLSPEED AHEAD THAT IS UNLEASHING TURMOIL IN TRADITIONBOUND AREAS LIKE THE CENTRAL STATE OF GUANAJUATO AN ENCLAVE OF QUAINT COLONIAL TOWNS AND FARMERS RIDING TWO TO A BURRO WHEN COMMERCE SECRETARY JAIME SERRA PUCHE ATTENDED THE INAUGURATION OF A MASECA PLANT IN THE TOWN OF SILAO IN MARCH 1992 MORE THAN 200 SMALL TORTILLA MAKERS PICKETED AT THE FACTORY GATE IN A CROWD OF MILLERS DRESSED IN WESTERN SHIRTS THE GOVERNMENT MINISTER IN A BUSINESS SUIT SPOKE OUT BLUNTLY AGAINST THE PRECOLUMBIAN METHOD OF MAKING TORTILLAS TO PROTEST WHAT THEY CALLED COERCIVE POLICIES FAVORING CORN FLOUR 900 TORTILLA SHOPS THROUGHOUT THE STATE CLOSED THEIR DOORS IT WAS LIKE CLOSING THE SPAGHETTI STORES IN ITALY SAYS MILLER VICTOR CARRILLO AFTER A WEEK OF MOUNTING PUBLIC DISCONTENT PROVOKED BY THE STRIKE THE GOVERNMENT PERSUADED THE TORTILLA MAKERS TO REOPEN BY GRANTING THEM A MODEST PRICE INCREASE THAT ALLOWED TRADITIONALISTS TO CONTINUE MILLING CORN BOUGHT NOW AT THE HIGHER MARKET PRICE BUT 18 MONTHS AFTER THE PLANT OPENING THE DEBATE OVER THE MERITS OF THE TWO PRODUCTION METHODS CONTINUES TO RAGE IN A SUPERMARKET THAT HAS RECENTLY INSTALLED A MASECA TORTILLAMAKING MACHINE SHOPPER ANGELES FLORES SAYS SHE THINKS THE SWITCH TO CORN FLOUR WAS LONG OVERDUE THE OLD TORTILLA MAKERS GIVE MEXICO THE IMAGE OF A DIRTY THIRD WORLD COUNTRY SAYS THE SMARTLY DRESSED HOMEMAKER BUT A COUPLE OF AISLES AWAY ANOTHER WOMAN YOLANDA MEDINA SAID SHE WILL BUY BREAD BEFORE SHE BUYS MASECA TORTILLAS SOME PRODUCTS THERE IS NO NEED TO MODERNIZE SHE SAYS TORTILLAMAKER JORGE SARABIA SAYS TRADITIONALISTS LIKE HIMSELF ARE JUST TRYING TO HOLD OUT UNTIL PRESIDENT SALINAS'S TERM ENDS LATE NEXT YEAR THEY HOPE THAT HIS SUCCESSOR WILL RECONSIDER THE CONVERSION TO FLOUR DON ROBERTO IS CONFIDENT THAT THERE WILL BE NO TURNING BACK WHEN THE RAILROADS CAME IN THE UNITED STATES THERE WERE WARS HE SAYS BUT MODERNITY WON 9309090001 930909 COMMISSION HEARINGS COULD DELAY SPINOFF OF PACIFIC TELESIS UNIT SAN FRANCISCO AN ADMINISTRATIVE LAW JUDGE PROPOSED CALLING FOR ADDITIONAL HEARINGS RELATING TO PACIFIC TELESIS GROUP'S INTENDED SPINOFF OF ITS WIRELESS OPERATIONS WHICH COULD DELAY THE COMPANY'S PLAN THE BABY BELL ANNOUNCED PLANS LAST DECEMBER TO SPIN OFF ITS 1 BILLION CELLULAR PHONE BUSINESS FROM ITS 9 BILLION TRADITIONAL TELEPHONE BUSINESS TO IMPROVE SHAREHOLDER VALUE THE COMPANY WHICH PLANNED TO COMPLETE THE SPINOFF LATE THIS YEAR SAID IT WOULD WORK WITH REGULATORS BUT DIDN'T BELIEVE APPROVAL WAS NECESSARY UNDER HIS PROPOSAL HOWEVER THE CALIFORNIA PUBLIC UTILITIES COMMISSION JUDGE SAID TO APPROVE THE TRANSACTION BEFORE WE HAVE CONDUCTED A FULL REVIEW WOULD VIOLATE OUR LEGAL AND FIDUCIARY OBLIGATIONS TO RATEPAYERS AND SHAREHOLDERS THE JUDGE ADDED THAT COMPANIES' PAST TRANSACTIONS INVOLVING CHANGES IN CORPORATE ORGANIZATION HAVE REQUIRED THE COMMISSION'S APPROVAL THE PROPOSAL WILL BE HEARD NEXT MONTH BY THE COMMISSION WHICH MAY REJECT CHANGE OR ACCEPT IT PACIFIC TELESIS SAID IT WAS FRUSTRATED WITH WHAT IT CALLED A SERIOUSLY FLAWED DECISION ARGUING THAT THE JUDGE'S PROPOSAL WAS OUT OF SYNC WITH THE REALITIES OF THE RAPID CHANGES IN TELECOMMUNICATIONS TECHNOLOGY AND MARKETS THE COMPANY ALSO SAID THE DELAY COULD POSTPONE BENEFITS TO THE LOCAL ECONOMY SAM GINN PACIFIC TELESIS CHAIRMAN SAID HE WAS ENCOURAGED THAT NORMAN SHUMWAY THE COMMISSIONER FOR THE CASE SAID HE DISAGREED WITH THE PROPOSAL AND PLANNED TO ISSUE AN ALTERNATIVE QUICK RESOLUTION PACIFIC TELESIS'S SHARES CLOSED AT 5450 DOWN 50 CENTS IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9309090133 930826 REVIEW & OUTLOOK EDITORIAL ASIDES WORTH EXAMINING AND YOU THOUGHT WE WERE OVER THE BANKING RECRIMINATIONS SEEMS THE CLINTON BUDGET FOR FISCAL '94 SEES DOUBLEDIGIT PERCENTAGE INCREASES IN STAFFING FOR THE FDIC THE COMPTROLLER OF THE CURRENCY AND THE FEDERAL RESERVE SOME OF THAT REFLECTS SHIFTS FROM WINDING DOWN THE RTC AND OTS BUT HARDLY ALL THE CENTER FOR THE STUDY OF AMERICAN BUSINESS AT WASHINGTON UNIVERSITY IN ST LOUIS IN ITS ANNUAL AUDIT OF THE FEDS FINDS THAT SUPERVISORY AND REGULATORY PERSONNEL ALONE AT THE FDIC WILL GROW 179 IN THE YEAR AHEAD IN A NEW SENSE BANKS ARE STILL WHERE THE MONEY IS SEE RELATED LETTER LETTERS TO THE EDITOR TOP JOB MARKET WSJ SEPT 9 1993 9308260051 YY93 MM09 9309090131 930817 POLITICS & POLICY WHITE HOUSE INDICATES HEALTH REFORMS WON'T CALL FOR NEW BROADBASED TAXES BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION STUNG BY THE BRUISING BATTLE OVER ITS ECONOMIC PLAN IS INDICATING THAT IT CAN FUND ITS HEALTHCARE PROGRAM WITH VIRTUALLY NO NEW TAXES FOR EXAMPLE WHITE HOUSE AIDE IRA MAGAZINER TOLD REPORTERS YESTERDAY THAT SAVINGS GENERATED FROM OVERHAULING THE SYSTEM WOULD BE ENOUGH TO PROVIDE SUBSIDIES FOR SMALL BUSINESSES THAT CAN'T AFFORD INSURANCE COVERAGE FOR THEIR WORKERS MR MAGAZINER'S COMMENTS CAME AFTER PRESIDENT CLINTON MADE A MAJOR HEALTH POLICY ADDRESS TO THE NATIONAL GOVERNORS ASSOCIATION IN TULSA OKLA THE NOTION THAT THE HEALTH PLAN WON'T CALL FOR NEW BROADBASED TAXES A PROSPECT ALSO HIGHLIGHTED IN RECENT WEEKS BY HILLARY RODHAM CLINTON AND SENIOR ADMINISTRATION OFFICIALS DOESN'T MEAN THAT THERE WON'T BE NEW MONIES FLOWING INTO THE HEALTH SYSTEM HOWEVER THOSE EMPLOYERS THAT CURRENTLY DON'T PROVIDE A PORTION OF THEIR WORKERS' HEALTH INSURANCE WOULD BE REQUIRED TO DO SO IN HIS ADDRESS TO THE GOVERNORS YESTERDAY MR CLINTON USED HIS STRONGEST LANGUAGE YET IN DEFENDING THIS ASPECT OF THE PLAN I DO NOT BELIEVE ANYBODY SHOULD GET A FREE RIDE IN THIS DEAL HE ASSERTED AT THE SAME TIME MR CLINTON PROMISED TO BE SENSITIVE TO THE NEEDS OF STRUGGLING COMPANIES BY PROVIDING A LONG PERIOD OF PHASEIN FOR THE PLAN AND A LIMITATION ON HOW MUCH BUSINESSES WOULD HAVE TO PAY INTO THE NEW SYSTEM IF YOU JUST PASSED AN EMPLOYER MANDATE AND DID NOTHING ELSE THERE'D BE A TON OF PROBLEMS IN DOING IT MR CLINTON SAID NO ONE PROPOSES TO DO THAT ELABORATING ON THE PRESIDENT'S REMARKS MR MAGAZINER SAID THE PLAN ULTIMATELY WOULD REQUIRE BIG EMPLOYERS TO PAY 80 OF THEIR EMPLOYEES' PREMIUMS AS EXPECTED WITH WORKERS PAYING THE REST BUT THE ADMINISTRATION IS LIKELY TO LIMIT THOSE PAYMENTS TO ABOUT 7 TO 75 OF PAYROLL HE INDICATED ANOTHER ADMINISTRATION OFFICIAL EXPLAINED THAT THE 7 TO 75 CAP WOULD APPLY ONLY TO LARGE COMPANIES THAT JOIN THE REGIONAL HEALTHINSURANCE PURCHASING POOLS THE CLINTON PLAN WOULD ESTABLISH GIANT COMPANIES PROBABLY WITH 5000 OR MORE WORKERS WOULD HAVE THE OPTION OF REMAINING OUTSIDE THE POOLS IN ADDITION MR MAGAZINER SAID THE ADMINISTRATION WOULD HELP CERTAIN BUSINESSES BY LIMITING THEIR SPENDING ON HEALTH PREMIUMS TO 4 OF THEIR PAYROLLS THESE COMPANIES MOST LIKELY BUSINESSES WITH FEW EMPLOYEES OR LOWWAGE FIRMS WOULD THEN BE OFFERED SUBSIDIES TO HELP PROVIDE FULL COVERAGE MR MAGAZINER SAID THE SUBSIDIES WOULD COME FROM A 30 BILLION TO 40 BILLION POOL FINANCED BY SAVINGS IN MEDICARE MEDICAID AND OTHER FEDERAL HEALTH PROGRAMS MANY OUTSIDE EXPERTS AND EVEN SOME WITHIN THE ADMINISTRATION ARE SKEPTICAL THAT SUCH SAVINGS CAN BE GENERATED QUICKLY ENOUGH BUT THE HEALTH PROPOSAL IS SURE TO RELY ON THEM AS A HUGE SOURCE OF FUNDING FOR ALL THE DETAILS THAT MR MAGAZINER DISCLOSED OR CONFIRMED YESTERDAY MANY IMPORTANT QUESTIONS ARE UNANSWERED PRECISELY WHAT IS TO BE INCLUDED IN THE FEDERALLY GUARANTEED BENEFITS PACKAGE IS UNCLEAR FOR EXAMPLE MR MAGAZINER ALSO SAID THE PRESIDENT HADN'T DECIDED WHETHER TO PROPOSE NEW SIN TAXES ON CIGARETTES OR LIQUOR IF HE DOES THOSE REVENUES WOULD BE USED TO PAY FOR IMPROVEMENTS IN LONGTERM CARE FOR THE ELDERLY MR MAGAZINER SAID ANOTHER WAY TO EASE THE STRAIN ON EMPLOYERS IS TO IMPLEMENT THE NEW HEALTH SYSTEM SLOWLY MR MAGAZINER SAID THE CLINTON PLAN WOULD BE PHASED IN OVER FIVE TO SEVEN YEARS THAT'S A LONGER TIME FRAME THAN SOME ADMINISTRATION OFFICIALS HAD TALKED ABOUT AND REFLECTS IN PART MORE RECENT CONCERNS ABOUT HOW QUICKLY THE STATES CAN ENACT PORTIONS OF THE PLAN IN HIS SPEECH MEANWHILE MR CLINTON WARNED OF THE DIRE CONSEQUENCES IF HIS HEALTHCARE PLAN DOESN'T SUCCEED AND HE LASHED OUT AT THE NAYSAYING TENDENCIES OF WASHINGTON SURELY TO GOODNESS WE CAN STOP WRINGING OUR HANDS AND ROLL UP OUR SLEEVES AND SOLVE THIS PROBLEM HE SAID AND SURELY WE CAN DO IT WITHOUT THE KIND OF RHETORIC AND AIRFILLING BULL THAT WE HEAR SO OFTEN IN THE NATION'S CAPITAL WITH HIS BROAD GESTURES AND PASSIONATE TONE MR CLINTON LEFT NO DOUBT THAT HE WAS DEEPLY COMMITTED TO HIS HEALTHCARE PLAN WHICH IS DUE OUT NEXT MONTH EVEN HIS MUCHBALLYHOOED EFFORT TO TRIM THE FEDERAL BUDGET HE SAID WON'T TAKE AMERICA WHERE WE NEED TO GO UNLESS WE ALSO REFORM THE HEALTHCARE SYSTEM WHICH IS THE BIGGEST OUTSTANDING CULPRIT IN THE FEDERAL DEFICIT AND IN PROMOTING ECONOMIC DISLOCATIONS IN THIS ECONOMY DESPITE ASSURANCES FROM MR CLINTON THAT THE PLAN WOULDN'T COST JOBS SEVERAL BUSINESS GROUPS VOICED DOUBTS YESTERDAY THE PLAN IS GOING TO LEAD MANY COMPANIES RIGHT OFF A CLIFF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SAID IN A STATEMENT FOR THE FIRST TIME MR CLINTON HIMSELF TICKED OFF AN EXTENSIVE LIST OF THE MAJOR ELEMENTS IN HIS HEALTH PLAN IT WOULD PROVIDE HEALTH COVERAGE TO EVERYONE REGARDLESS OF WHETHER THEY ARE SICK UNEMPLOYED OR CHANGE JOBS ESTABLISH A NATIONAL HEALTH SPENDING BUDGET RESTRUCTURE THE INSURANCE INDUSTRY MR CLINTON SAID THERE WOULD BE A SYSTEM OF COMMUNITY RATING IN WHICH HEALTHINSURANCE PREMIUMS WOULD BE BASED ON THE AVERAGE COST OF PROVIDING MEDICAL SERVICES IN A GEOGRAPHIC AREA WITHOUT ADJUSTING FOR EACH INDIVIDUAL'S MEDICAL HISTORY OR LIKELIHOOD OF USING SUCH SERVICES PROMOTE SIGNIFICANT INCREASES NOT DECREASES IN INVESTMENT AND RESEARCH AND TECHNOLOGY FOLD WORKERS' COMPENSATION AND MEDICALRELATED AUTO INSURANCE COVERAGE INTO THE OVERHAUL EFFORT PERMIT SELFEMPLOYED INDIVIDUALS TO DEDUCT THE FULL COST OF THEIR HEALTH BENEFITS UP FROM THE 25 DEDUCTION GIVE STATES A STRONG ROLE IN THE NEW SYSTEM BY PUTTING THEM IN CHARGE OF ESTABLISHING AND ORGANIZING THE INSURANCEPURCHASING POOLS ALLOW FOR PEOPLE OF LOW INCOMES ON MEDICARE BUT NOT POOR ENOUGH TO BE ON MEDICAID TO GET A PRESCRIPTION DRUG BENEFIT PHASED IN OVER A PERIOD OF YEARS SIMILARLY THE PRESIDENT SAID I THINK WE MUST DO THE SAME THING WITH LONGTERM CARE JEFFREY H BIRNBAUM IN WASHINGTON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR CAN YOU BELIEVE IT WSJ SEPT 9 1993 9308170149 YY93 MM09 9309090125 930823 LEISURE & ARTS BOOKSHELF BEHIND THE SITTING BULL MYSTIQUE BY DAVID SHRIBMAN THE GREAT PANTHEON OF AMERICAN CARICATURES IS A CROWDED PLACE THERE IS GEORGE WASHINGTON A STICK FIGURE WHO NEVER TOLD A LIE AND WAS FATHER OF OUR COUNTRY THERE IS ABRAHAM LINCOLN ANOTHER STRAIGHT MAN AND SAVIOR OF THE COUNTRY THERE IS THEODORE ROOSEVELT THE WARRIOR PHILOSOPHER HERO OF THE BADLANDS AND SAN JUAN HILL AND THERE IS SITTING BULL TACITURN INJUN LEADER OF A DOOMED BUT COLORFUL PEOPLE WHO PROVIDE THE ULTIMATE EXAMPLE OF BEING IN THE WRONG PLACE NORTH AMERICA AT THE WRONG TIME THE 19TH CENTURY OVER THE YEARS THESE CARICATURES HAVE CRACKED SOMEWHAT NOW WE KNOW THAT G WASHINGTON PADDED HIS EXPENSE ACCOUNT THAT A LINCOLN WAS A MANICDEPRESSIVE AND THAT T ROOSEVELT WAS SICKLY AS A CHILD AND SOMETHING OF A JERK AS AN ADULT BUT S BULL HE'S STILL THE INDIAN WHO DEFEATED CUSTER AND THEN ENDED UP AS A PATHETIC BIT PLAYER IN TRAVELING WESTERN SHOWS NOW WE HAVE THE PICTURE IN THREE DIMENSIONS ROBERT M UTLEY A FORMER CHIEF HISTORIAN OF THE NATIONAL PARK SERVICE HAS PIECED TOGETHER THE FIRST COMPREHENSIVE BIOGRAPHY OF THE FAMOUS AMERICAN A WARRIOR A HOLY MAN MAYBE EVEN A PHILOSOPHER CERTAINLY A SYMBOL HE GIVES US SITTING BULL IN THE MODERN EDITION IN THE LANCE AND THE SHIELD HENRY HOLT 413 PAGES 25 MR UTLEY DEPICTS SITTING BULL IN WIDE BOLD AND COLORFUL STROKES THIS IS THE NATIVE AMERICAN WHO UNDERSTOOD THAT THE BEGINNING OF THE RAILROAD MEANT THE END OF THE INDIAN WHO MASTERED THE TECHNIQUES OF THE HUNT AND THE BATTLE WHO LIVED IN A SPIRITUAL DIMENSION THAT HIS WHITE RIVALS NEVER UNDERSTOOD AND HELD IN CONTEMPT SITTING BULL CONCLUDES MR UTLEY EMERGES AS A TOWERING FIGURE IN HIS OR ANY OTHER CULTURE THE WARRIOR WHO AT AGE 45 LED THE SIOUX AND CHEYENNE TO VICTORY IN THE BATTLE OF THE LITTLE BIGHORN WAS A MAN OF NOBLE BEARING AN OVERWHELMING FORCE IN BOTH WAR AND PEACE WHO SOMETIMES KILLED FOUR OR FIVE BUFFALOES AT A TIME LATER IN ENFORCED SETTLEMENT HE BUILT AN ESTATE WITH 20 HORSES 45 CATTLE 80 CHICKENS BUT THOUGH HE ACQUIRED THE WHITE MAN'S TOTEMS OF WEALTH HE RESISTED HIS RELIGION AND HIS DOGMA ALL OF THIS IS ILLUMINATED IN A REMARKABLE WORK OF SCHOLARSHIP COBBLED TOGETHER FROM BUREAU OF INDIAN AFFAIRS RECORDS SCRAPS IN THE PROVINCIAL ARCHIVES IN MANITOBA CANADA DOCUMENTS ASSEMBLED BY THE US ARMY CONTINENTAL COMMANDS AND LETTERS FROM SUCH SOURCES AS THE DAKOTA SUPERINTENDENCY THE CHEYENNE RIVER AGENCY THE SPOTTED TAIL AGENCY AND THE STANDING ROCK AGENCY ULTIMATELY OF COURSE THIS IS BIOGRAPHY AS TRAGEDY THE STORY OF SITTING BULL IS THE STORY OF HOW ONE SET OF AMERICANS MISTREATED ANOTHER HOW A WAY OF LIFE WAS SNUFFED OUT AND HOW THE LAND CHANGED TO REFLECT THE CHARACTER OF ITS NEW MASTERS AT THE HEART OF THIS STORY ALONG WITH SITTING BULL'S INDIANS IS THE BUFFALO YET ANOTHER AMERICAN SYMBOL BUT TO THE INDIAN THE BUFFALO WAS MORE THAN A SYMBOL IT WAS A WAY OF LIFE ITS MEAT WAS FOOD ITS HIDE AND FUR WERE CLOTHING AND SHELTER ITS SINEWS WERE BOWSTRINGS AND BINDINGS FOR ALL HIS WISDOM AND INSIGHT SITTING BILL LONG RESISTED THE INEVITABLE CONCLUSION THAT THIS PRIMORDIAL WAY OF LIFE COULD NOT BE PRESERVED THAT THE WHITE SOLDIERS AND SETTLERS COULDN'T BE ROLLED BACK THAT THE RAILROAD WAS ONE OF HISTORY'S IRRESISTIBLE FORCES AND THAT A NOMADIC PEOPLE WITH A MYSTICAL RELIGION BUT INFERIOR WEAPONS WERE BASICALLY SUNK YET BECAUSE HE DID RESIST FOR SO LONG AND WITH SUCH SKILL EVEN GUILE SITTING BULL ACQUIRED A MYSTIQUE OUTSIDE HIS PASTORAL WORLD THAT WAS EVEN LARGER THAN THAT HE HAD WITHIN IT IN THE PERCEPTION OF THE WHITE CITIZENRY MR UTLEY WRITES SITTING BULL WAS THE MAN TO GET THE ARCHDEMON OF THE SIOUX HOLDOUTS THE ARCHITECT OF CUSTER'S DEFEAT AND DEATH THE SUPREME MONARCH OF ALL THE SAVAGE LEGIONS ARRAYED AGAINST THE FORCES OF CIVILIZATION IN SHORT FIRST IN WAR FIRST IN PEACE FIRST ON THE LIST OF MOST WANTED AND IN THIS STORY AT LEAST WHAT THE WHITE MAN WANTED HE GOT SO ULTIMATELY HE GOT SITTING BULL TOO AMERICAN HISTORY HAS NO CODA MORE MOURNFUL THAN SITTING BULL'S LIFE AFTER LITTLE BIGHORN THE BUFFALO HERDS DWINDLED THE INDIAN'S POSITION DETERIORATED AND SOON SITTING BULL'S OWN INDEPENDENCE WAS ENDANGERED I WILL REMAIN WHAT I AM UNTIL I DIE A HUNTER HE VOWED AND WHEN THERE ARE NO BUFFALO OR OTHER GAME I WILL SEND MY CHILDREN TO HUNT AND LIVE ON PRAIRIE MICE FOR WHERE AN INDIAN IS SHUT UP IN ONE PLACE HIS BODY BECOMES WEAK IT WAS THE HUNGER OF HIS PEOPLE FOR FOOD NOT FOR LAND WHICH HAD LONG AGO BEEN LOST THAT LED SITTING BULL AT AGE 50 TO ABANDON THE LIFE OF THE HUNTER AND TO DELIVER HIMSELF INTO THE HANDS OF THE FEDERAL OFFICIALS HE MADE PEACE WITH THE PEACE THAT WAS FORCED UPON HIM HE TRAVELED HE SOLD AUTOGRAPHS AND HE SOLD PICTURES HE MADE APPEARANCES IN BUFFALO BILL'S WILD WEST HE BECAME THE MYTHIC CENTERPIECE IN A SAD STORY MR SHRIBMAN IS WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE SEE RELATED LETTER LETTERS TO THE EDITOR TEDDY ROOSEVELT DESERVES BETTER WSJ SEPT 9 1993 9308230053 YY93 MM09 9309090017 930809 KODAK SEEKS OUTSIDER TO BE CHAIRMAN CEO SEARCH FOR SAVVY MARKETER COST CUTTER FOLLOWS DISMISSAL OF WHITMORE BY JOAN E RIGDON AND JOANN S LUBLIN STAFF REPORTERS OF THE WALL STREET JOURNAL EASTMAN KODAK CO DIRECTORS WHO ANNOUNCED THEIR OUSTER OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER KAY R WHITMORE FRIDAY ARE NOW SEARCHING FOR AN OUTSIDER WHO WON'T NEED PRODDING TO MAKE MASSIVE COST CUTS THE NEW CHAIRMAN AND CHIEF EXECUTIVE WHO WOULD BE THE FIRST OUTSIDER TO HEAD KODAK IS ALSO EXPECTED TO BE A SAVVY MARKETER UNLIKE THE 61YEAROLD MR WHITMORE AND HIS LIEUTENANTS WHO ASCENDED TO THE EXECUTIVE SUITE FROM KODAK'S LABS THE NEW CHAIRMAN WILL BE FREE TO BRING IN HIS OWN TEAM OF SENIOR MANAGERS INCLUDING A NEW CHIEF FINANCIAL OFFICER A PERSON CLOSE TO KODAK SAID ALTHOUGH MR WHITMORE WON'T STEP DOWN UNTIL HIS SUCCESSOR IS IN PLACE KODAK STOCK SURGED 325 OR 59 ON THE NEWS FRIDAY TO CLOSE AT 58625 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEW CHIEF WILL HAVE HIS WORK CUT OUT FOR HIM INVESTORS HAVE BEEN CLAMORING FOR AS MANY AS 20000 LAYOFFS ABOUT 15 OF KODAK'S WORK FORCE THEY ALSO WANT THE ROCHESTER NY PHOTOGRAPHY CHEMICAL AND HEALTHCARE COMPANY TO CUT RESEARCH COSTS AND BECOME AN AGGRESSIVE FOLLOWER BY CAPITALIZING ON RIVALS' INVENTIONS INSTEAD OF MOSTLY DEVELOPING ITS OWN THE OUSTER TOOK PLACE AT A SPECIAL BOARD MEETING AT KODAK HEADQUARTERS JULY 23 BUT WASN'T ANNOUNCED UNTIL FRIDAY BECAUSE KODAK SAID IT NEEDED TIME TO COMMUNICATE WITH CUSTOMERS SUPPLIERS AND BSINESS PARTNERS MR WHITMORE DECLINED TO SPEAK WITH REPORTERS AT THE MEETING THE NINE OUTSIDE DIRECTORS ASKED MR WHITMORE AND THE THREE OTHER INSIDERS TO LEAVE THE ROOM AND THEN VOTED UNANIMOUSLY TO REPLACE HIM BOARD MEMBERS SAID THE VOTE WAS THE CULMINATION OF YEARS OF FRUSTRATION WITH MR WHITMORE WHO HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE SINCE JUNE 1990 AND WAS PRESIDENT FOR SEVEN YEARS BEFORE THAT WE'VE BEEN UNANIMOUS ON THIS FOR TWO YEARS SAID DIRECTOR ROBERTO C GOIZUETA CHAIRMAN OF COCACOLA CO BUT THE BOARD SAID IT DELAYED ITS DECISION TO GIVE MR WHITMORE A CHANCE TO TURN THE COMPANY AROUND IN RECENT MONTHS HOWEVER DIRECTORS SAID MR WHITMORE FOUGHT KEY DECISIONS INCLUDING KODAK'S FIRST LAYOFFS OUTSIDE SEARCHES FOR SENIOR EXECUTIVES AND PLANS TO SPIN OFF THE CHEMICAL BUSINESS THOSE MOVES SHOULD HAVE HAPPENED PRIOR TO THIS SAID DIRECTOR JOHN J PHELAN JR PRESIDENT OF THE INTERNATIONAL FEDERATION OF STOCK EXCHANGES THERE WAS AN AWFUL LOT OF PRESSURE FROM THE BOARD THAT WENT INTO THOSE DECISIONS MR WHITMORE HAS DRAGGED HIS COMPANY THROUGH TWO YEARS OF ALMOST CONSTANT RESTRUCTURING AND WAS PENNING HIS LATEST TURNAROUND PLAN WHEN HE WAS SACKED DIRECTORS SAID THE PLAN FELL SHORT OF THEIR HOPES FOR QUICK AND DEEP COST CUTS AND LACKED GROWTH STRATEGIES KODAK WILL ANNOUNCE THE CASHFLOW AND DEBTREDUCTION PARTS OF MR WHITMORE'S PLAN THIS MONTH BUT A FINAL VERSION ORIGINALLY PROMISED FOR SEPTEMBER WON'T COME UNTIL THE NEW CEO IS IN PLACE THE FINAL DECISION TO OUST MR WHITMORE CAME JUST DAYS AFTER THE BOARD REJECTED HIS CHOICE FOR A NEW CHIEF FINANCIAL OFFICER THE BOARD'S SEARCH COMMITTEE INCLUDING MR PHELAN HAD ENDORSED THE CANDIDATE BUT CHANGED ITS POSITION BECAUSE MR GOIZUETA LOBBIED AGAINST THE CHOICE ACCORDING TO ONE PERSON CLOSE TO THE SITUATION MR GOIZUETA PERSONALLY KNEW THE MAN BECAUSE THEY BOTH LIVE IN THE ATLANTA AREA AND FELT HE WASN'T THE RIGHT CHOICE FOR KODAK THE INDIVIDUAL SAID MR WHITMORE WAS VERY EMBARRASSED HE TOLD THE CANDIDATE THAT HE WAS HIS CHOICE THE CANDIDATE'S IDENTITY COULDN'T BE LEARNED A KODAK SPOKESMAN CONFIRMED THAT THE BOARD REVIEWED BUT REJECTED A CANDIDATE PUT FORWARD BY MR WHITMORE SHORTLY BEFORE THE JULY 23 MEETING THE SPOKESMAN ADDED THAT MR WHITMORE WASN'T PARTICULARLY UPSET BUT SAID HE DIDN'T KNOW WHAT ROLE MR GOIZUETA PLAYED IN THE MATTER THE SEARCH FOR A FINANCIAL CHIEF WAS SUSPENDED JULY 26 KODAK HAS BEEN LOOKING FOR A NEW CHIEF FINANCIAL OFFICER SINCE LATE APRIL WHEN CHRISTOPHER J STEFFEN ABRUPTLY QUIT AFTER 11 WEEKS ON THE JOB IN A DISPUTE WITH MR WHITMORE OVER HOW QUICKLY AND AGGRESSIVELY TO CUT COSTS HIS DEPARTURE TRIGGERED SOME INSTITUTIONAL INVESTORS TO CALL FOR MR WHITMORE'S RESIGNATION MR GOIZUETA WHO HEADS KODAK'S CEO SEARCH COMMITTEE REFUSED TO RULE OUT THE POSSIBILITY THAT THE 51YEAROLD MR STEFFEN WOULD BE CONSIDERED FOR THE CEO POST MR STEFFEN WHO WAS WIDELY VIEWED AS GUNNING FOR MR WHITMORE'S JOB BEFORE HE QUIT COULDN'T BE REACHED TO COMMENT HE NOW OVERSEES FINANCIAL CONTROLS AND OPERATIONS AT CITICORP EVEN IF MR STEFFEN DOESN'T EMERGE AS A CANDIDATE HIS THINKING MAY SERVE AS A PARTIAL BLUEPRINT FOR KODAK'S FUTURE ANALYSTS WERE STRUCK FRIDAY BY THE SIMILARITY BETWEEN THE BOARD'S AGENDA FOR KODAK AND MR STEFFEN'S VIEWS BOARD MEMBERS REPEATEDLY SAID FOR INSTANCE THAT THEY WOULD LIKE KODAK'S BUSINESSES TO BENCHMARK OR COMPARE THEMSELVES TO COMPETITORS AND STRIVE TO BE AMONG THE TOP QUARTILE FAVORITE THEMES OF MR STEFFEN'S SAID WERTHEIM SCHRODER ANALYST MICHAEL ELLMANN NAMES OF SEVERAL OTHER POSSIBLE CANDIDATES SURFACED AMONG EXECUTIVE RECRUITORS ON FRIDAY JOHN SCULLEY CHAIRMAN OF APPLE COMPUTER INC CHARLES KNIGHT THE EMERSON ELECTRIC CO CHAIRMAN WHO WAS A CEO CANDIDATE AT INTERNATIONAL BUSINESS MACHINES CORP PAUL STERN FORMER CHAIRMAN AND CEO OF CANADIAN TELEPHONE EQUIPMENT MAKER NORTHERN TELECOM LTD AND WILLIAM ROELANDTS A SENIOR EXECUTIVE AT HEWLETTPACKARD CO MR SCULLEY IS CONSIDERED A TOP CONTENDER BECAUSE AS A FORMER PEPSICO INC EXECUTIVE HE HAS THE MARKETING EXPERTISE KODAK DESPARATELY NEEDS FOR NOW HE'S OFF LIMITS HE WAS PLACED IN HIS CURRENT JOB BY GERARD R ROCHE HEAD OF HEIDRICK & STRUGGLES INC WHO IS ALSO HANDLING THE KODAK SEARCH IT'S CONSIDERED UNETHICAL FOR A HEADHUNTER TO RECRUIT A CANDIDATE AWAY FROM A COMPANY WHERE THE HEADHUNTER PLACED HIM BUT MR SCULLEY WOULD BE FAIR GAME IF HE LEFT APPLE WHICH ISN'T OUT OF THE QUESTION SINCE HE STEPPED DOWN AS CHIEF EXECUTIVE IN JUNE WHEN ASKED IF ANY OF KODAK'S INDEPENDENT BOARD MEMBERS MIGHT BE CANDIDATES MR GOIZUETA VOLUNTERED THE NAME OF RICHARD S BRADDOCK FORMER CITICORP PRESIDENT WHO IS CHIEF EXECUTIVE AT MEDCO CONTAINMENT SERVICES INC THE DISCOUNT DRUG COMPANY THAT PHARMACEUTICAL GIANT MERCK & CO HAS AGREED TO BUY BUT LATER MR GOIZUETA PLAYED DOWN THE SUGGESTION SAYING THE BOARD HASN'T DISCUSSED THE POSSIBILITY WITH MR BRADDOCK MR WHITMORE NOW JOINS AN ILLUSTRIOUS CROWD OF CHAIRMEN WHO HAVE BEEN OUSTED FROM BLUECHIP COMPANIES THESE COMPANIES INCLUDE IBM WESTINGHOUSE ELECTRIC CORP AMERICAN EXPRESS CO ELI LILLY & CO AND GENERAL MOTORS CORP SEE RELATED LETTER LETTERS TO THE EDITOR NEGATIVE DEVELOPMENT KODAK AS A METOOER' WSJ SEPT 9 1993 9308090011 YY93 MM09 9309080168 930908 ROSE'S STORES SEEKS CHAPTER 11 STATUS LOAN IS ARRANGED BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ROSE'S STORES INC BATTERED BY COMPETITION AND FACED WITH WIDENING LOSSES SAID IT FILED FOR PROTECTION FROM CREDITORS IN BANKRUPTCY COURT THE DISCOUNT RETAILER NOTED HOWEVER THAT IT ALREADY HAS RECEIVED SOME HELP IN THE FORM OF A 125 MILLION LOAN COMMITMENT SUBJECT TO COURT APPROVAL IN AUGUST ROSE'S SAID IT WAS CONSIDERING A RESTRUCTURING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AFTER REPORTING THAT ITS FISCAL SECONDQUARTER LOSS MORE THAN DOUBLED TO 116 MILLION OR 62 CENTS A SHARE FROM THE YEAR EARLIER THE COMPANY'S SAMESTORE SALES FELL 37 FROM THE YEARAGO QUARTER BECAUSE ITS LIMITED BORROWING ABILITY PREVENTED IT FROM RESTOCKING ITS SHELVES AS NEEDED ROSE'S SAID IT MADE THE CHAPTER 11 FILING IN BANKRUPTCY COURT IN RALEIGH NC AS A RESULT OF THE POOR SECONDQUARTER OPERATING RESULTS THE COMPANY WHICH OPERATES 215 DISCOUNT STORES IN THE SOUTHEAST SAID IT EXPECTS TO BE FULLY STOCKED IN TIME FOR THE IMPORTANT CHRISTMAS SEASON ROSE'S BASED IN HENDERSON NC HAS BEEN HURT BY TOUGH NATIONAL RIVALS SUCH AS WALMART STORES INC AND KMART CORP UNDER GEORGE L JONES PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO WAS RECRUITED TWO YEARS AGO FROM DAYTON HUDSON CORP'S TARGET STORES DIVISION ROSE'S HAS BEEN SEEKING WAYS TO DISTINGUISH ITSELF FROM THOSE LARGER COMPETITORS TOWARD THAT END MR JONES SAID HE PLANS TO EXPAND SALES OF CLOSEOUT MERCHANDISE SUCH ITEMS TYPICALLY ARE PURCHASED AT A DISCOUNT FROM MANUFACTURERS UNLOADING OLDER VERSIONS OF PRODUCTS TO MAKE WAY FOR NEWER ONES THIS YEAR ROSE'S HAS BEEN EXPERIMENTING WITH THREE CLOSEOUT STORES CALLED GREATEST DEALS THE COMPANY PLANS TO USE THE EXPERTISE GAINED FROM THOSE STORES TO INCREASE THE FLOOR SPACE AND INVENTORY DOLLARS ALLOCATED FOR CLOSEOUT MERCHANDISE IN THE EXISTING ROSE'S STORES MR JONES EMPHASIZED THAT CLOSEOUT ITEMS WILL SUPPLEMENT NOT REPLACE ROSE'S EXISTING MERCHANDISE LINES TO SPEARHEAD ITS EXPANSION OF CLOSEOUT PRODUCTS ROSE'S YESTERDAY HIRED MARY COOK SCHWARTZ WHO HAD BEEN VICE PRESIDENT MERCHANDISING FOR CONSOLIDATED STORES CORP THE RETAIL CLOSEOUT CHAIN BASED IN COLUMBUS OHIO ROSE'S ALSO SAID IT RECEIVED A COMMITMENT FROM GE CAPITAL CORP FOR THE 125 MILLION LOAN UNTIL NOW MR JONES SAID THE COMPANY HAS BEEN SO CASHSTRAPPED THAT OUR STORES HAVE BEEN SERIOUSLY UNDERSTOCKED IN OVERTHECOUNTER TRADING YESTERDAY ROSE'S VOTING SHARES ROSE TO 15625 UP 3125 CENTS THE NONVOTING CLASS B STOCK CLOSED AT 1 A SHARE OFF 625 CENTS 9309080167 930908 TECHNOLOGY & HEALTH ABBEY HEALTHCARE AGREES TO ACQUIRE TOTAL PHARMACEUTICAL FOR 197 MILLION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL THE TREND TOWARD HEALTHCARE CONSOLIDATION CONTINUED AS ABBEY HEALTHCARE GROUP INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE TOTAL PHARMACEUTICAL CARE INC FOR 197 MILLION OR 23 A SHARE A BENEFICIARY OF THE DEAL WOULD BE RICHARD RIORDAN THE MILLIONAIRE BUSINESSMAN WHO BECAME MAYOR OF LOS ANGELES JULY 1 MAYOR RIORDAN WHO TURNED OVER HIS ASSETS TO A BLIND TRUST WHEN HE ASSUMED OFFICE HELPED START TOTAL PHARMACEUTICAL AND REMAINS ONE OF ITS LARGE SHAREHOLDERS ABBEY A COSTA MESA CALIF PROVIDER OF HOME MEDICAL EQUIPMENT AND RESPIRATORY THERAPY SAID IT AGREED TO BUY TOTAL PHARMACEUTICAL FOR 19 A SHARE IN CASH AND 4 A SHARE IN ABBEY COMMON STOCK TOTAL TORRANCE CALIF PROVIDES INTRAVENOUS MEDICATIONS AND NUTRITION IN THE HOME ABBEY HAS BEEN LOOKING TO PUT DOWN THREE LEGS IN THE HOME HEALTHCARE BUSINESS SO IT CAN OFFER ONESTOP SHOPPING TO NETWORKS OF MANAGEDCARE PROVIDERS SAID TIMOTHY AITKEN ABBEY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER TOTAL GIVES US THE INFUSION THERAPY LEG THE DEAL COMES ONLY FOUR MONTHS AFTER ABBEY LOST A BITTER TAKEOVER FIGHT FOR LIFETIME CORP THE LARGE BOSTONBASED NURSING CARE PROVIDER AGREED IN MAY TO BE PURCHASED BY OLSTEN CORP FOR ABOUT 448 MILLION IN STOCK ABBEY IS ACTIVELY PURSUING SMALLER ACQUISITIONS IN THE NURSING CARE BUSINESS THE THIRD LEG IT NEEDS TO COMPLETE ITS STRATEGY MR AITKEN SAID ABBEY'S OFFER PROPELLED TOTAL'S SHARES UP 60 OR 8 TO 2125 IN NATIONAL OVERTHECOUNTER TRADING ABBEY SHARES ALSO TRADED OTC SLIPPED 75 CENTS TO 22125 AFTER COMPLETION OF THE TRANSACTION EXPECTED BY THE END OF OCTOBER MR AITKEN WILL BECOME ABBEY'S EXECUTIVE CHAIRMAN VICTOR MC CHALTIEL CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TOTAL WILL SUCCEED MR AITKEN AS ABBEY PRESIDENT AND CHIEF EXECUTIVE OFFICER MR CHALTIEL WILL ALSO HAVE A SEAT ON ABBEY'S BOARD INCREASING ITS SIZE TO EIGHT MEMBERS MR AITKEN SAID HIS NEW TITLE IS INTENDED TO SHOW THAT I AM STILL VERY MUCH IN THE BUSINESS VICTOR'S FOCUS WILL BE MORE INTERNAL AND MINE WILL BE MORE EXTERNAL THE CURRENT ABBEY AND TOTAL BUSINESSES WILL BE RUN AS SEPARATE DIVISIONS UNDER THE ABBEY BANNER BUT WILL BE MARKETED TO MANAGEDCARE BUYERS AND PAYERS AS ONE COMPANY SAID RICHARD J RAPP ABBEY CHIEF FINANCIAL OFFICER ANALYSTS EXPECT CONSOLIDATION TO CONTINUE IN THE HOME HEALTHCARE BUSINESS OVER THE NEXT FIVE YEARS REFLECTING PROVIDERS' NEED TO SLASH COSTS TO MEET MARKET DEMAND FOR LOWER PRICES TOTAL PHARMACEUTICAL IS AN ATTRACTIVE ACQUISITION BECAUSE OF ITS SUCCESS IN THE MANAGEDCARE ARENA WHICH ACCOUNTS FOR ABOUT THREEQUARTERS OF ITS REVENUE THE COMPANY GREW UP IN CALIFORNIA AND UNDERSTANDS COST CONTAINMENT MR AITKEN SAID MR AITKEN SAID HE FIRST MET MR CHALTIEL IN 1989 IN THE OFFICES OF MAYOR RIORDAN'S FORMER LAW FIRM ABBEY AND TOTAL ARE BOTH CLIENTS OF THE FIRM VICTOR KNEW ABBEY'S INTEREST IN THE THREE LEGS WE'VE BEEN TALKING ON AND OFF MR AITKEN SAID THOSE CONVERSATIONS PICKED UP AGAIN THREE WEEKS AGO IT SEEMED TO MAKE A LOT OF SENSE TO TRY TO PUT SOMETHING TOGETHER MAYOR RIORDAN WHO MADE MUCH OF HIS FORTUNE AS A VENTURE CAPITALIST PROVIDED SEED MONEY FOR TOTAL PHARMACEUTICAL IN 1984 AND HELPED RECRUIT MR CHALTIEL TO THE COMPANY SEVERAL YEARS AGO IT WAS DICK'S IDEA TO START A HOME INFUSION COMPANY SAID J CHRISTOPHER LEWIS A TOTAL PHARMACEUTICAL DIRECTOR LONGTIME BUSINESS ASSOCIATE OF MAYOR RIORDAN'S AND TRUSTEE OF HIS BLIND TRUST MAYOR RIORDAN HAD AN INTEREST IN 105545 TOTAL PHARMACEUTICAL SHARES HELD BY VARIOUS PARTNERSHIPS IN WHICH HE IS A PARTNER ACCORDING TO A RECENT PROXY STATEMENT HIS DIRECT HOLDINGS WHILE SUBSTANTIAL FALL BELOW THE 5 THRESHOLD FOR REPORTING TO THE SECURITIES AND EXCHANGE COMMISSION MR LEWIS SAID HIS DUTIES AS TRUSTEE OBLIGATE HIM NOT TO DISCUSS THE MAYOR'S PORTFOLIO ABBEY SAID COMPLETION OF THE ACQUISITION IS SUBJECT TO VARIOUS APPROVALS INCLUDING BY SHAREHOLDERS OF BOTH COMPANIES 9309080166 930908 FINANCING BUSINESS RANGER OIL LTD RANGER OIL LTD SAID IT AGREED TO PLACE 50 MILLION US OF SENIOR 695 NOTES WITH SEVERAL NORTH AMERICAN INSURANCE COMPANY FUNDS THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID THE UNSECURED NOTES DUE SEPT 30 2003 HAVE AN AVERAGE EIGHTYEAR LIFE WITH REPAYMENTS COMMENCING ON SEPT 30 1999 IT SAID THE TRANSACTION IS SCHEDULED TO CLOSE SEPT 30 RANGER SAID IT PLANS TO USE THE FUNDS TO REPAY BANK DEBT DEVELOP NORTH SEA OIL AND GAS DISCOVERIES AND ACQUIRE OIL AND GAS PROPERTIES 9309080164 930908 WHO'S NEWS DIXIE YARNS INC DIXIE YARNS INC CHATTANOOGA TENN LOVIC A BROOKS JR AND JOSEPH T SPENCE JR WERE ELECTED DIRECTORS OF THIS TEXTILE AND FLOOR COVERING PRODUCTS COMPANY RAISING BOARD MEMBERSHIP TO NINE MR BROOKS 66 YEARS OLD IS CHIEF EXECUTIVE PARTNER AT THE LAW FIRM OF CONSTANGY BROOKS & SMITH MR SPENCE 52 IS A MANAGING DIRECTOR IN THE ATLANTA OFFICE OF RUSSELL REYNOLDS ASSOCIATES 9309080163 930908 FORD'S EUROPEAN CHIEF PREDICTS AN END TO THE RED INK SOMETIME SOON PERHAPS BY DOUGLAS LAVIN AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL FRANKFURT WITH ANOTHER ROUND OF JOB REDUCTIONS AND MORE COSTCUTTING LINED UP FORD MOTOR CO'S EUROPEAN CHIEF ONCE AGAIN IS PREDICTING AN END TO WHAT HAS BECOME A THREEYEAR FLOOD OF RED INK HE ISN'T SAYING WHEN ONLY SOON PERHAPS BUT JACQUES NASSER THE CHAIRMAN OF FORD OF EUROPE DID SUGGEST IN A BRIEF INTERVIEW BEFORE THE FRANKFURT MOTOR SHOW THAT THE WORST DOWNTURN IN EUROPEAN CAR SALES IN DECADES MAY BE BOTTOMING OUT AND HE PREDICTED A 1 TO 2 MARKET UPTURN FOR NEXT YEAR MR NASSER'S COMMENTS CAME AS FORD ANNOUNCED THIS WEEK THE ELIMINATION OF ROUGHLY 1400 MORE JOBS IN THE UK THROUGH A VOLUNTARY RETIREMENT PROGRAM THAT TOGETHER WITH PREVIOUSLY ANNOUNCED CUTS WILL REDUCE FORD OF EUROPE'S EMPLOYMENT TO ABOUT 82000 AT YEAR END DOWN FROM MORE THAN 90000 AT THE END OF 1992 THE EXECUTIVE VOWED TO CONTINUE FORD OF EUROPE'S EFFORTS TO CUT COSTS THROUGH CLOSER COOPERATION WITH SUPPLIERS AND TO CARRY ON ITS AGGRESSIVE INVESTMENT PROGRAM THE UNIT PLANS TO INVEST MORE THAN 16 BILLION BETWEEN 1991 AND 1995 INCLUDING 45 BILLION FOR NEW PRODUCTS FORD OFFICIALS HAVE ACKNOWLEDGED THAT SOME OF ITS PROBLEMS GREW OUT OF LACKLUSTER PRODUCT INTRODUCTIONS IN THE LATE 1980S MR NASSER SAID THE MONEY TO FUND THAT PROGRAM WON'T BE COMING FROM FORD WORLD HEADQUARTERS IN DEARBORN MICH THERE IS NO BANKROLL MR NASSER SAID IN THE END ANALYSIS YOU REALLY HAVE TO FUND YOURSELF CONSEQUENTLY HE SAID WE NEED TO BE PROFITABLE TO CONTINUE OUR INVESTMENT STRATEGY ALTHOUGH MR NASSER WOULDN'T MAKE A FIRM PREDICTION HIS BOSS IN DEARBORN RECENTLY SUGGESTED THAT FORD OF EUROPE MAY BE TURNING THE CORNER THE UNIT WILL RETURN TO REASONABLE PROFITABILITY SAID W WAYNE BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS IN AN INTERVIEW IT ISN'T YEARS AWAY IT'S MONTHS AWAY OF COURSE FORD HAS THOUGHT IT HAD HIT BOTTOM IN EUROPE BEFORE ONLY TO FIND THE ELEVATOR STILL GOING DOWN LAST SUMMER MR NASSER'S PREDECESSOR L LINDSEY HALSTEAD PREDICTED FORD OF EUROPE WOULD POST A PROFIT FOR 1992 INSTEAD THE RED INK AMOUNTED TO 13 BILLION INCLUDING 400 MILLION IN LOSSES FROM FORD'S JAGUAR UNIT SINCE HE TOOK OVER FORD OF EUROPE LAST JANUARY MR NASSER HAS BEEN ATTACKING THE UNIT'S LOSSES WITH AN AGGRESSIVE COSTCUTTING CAMPAIGN IN A SYMBOLIC MOVE FOR EXAMPLE HE ABOLISHED THE PRACTICE OF ASSIGNING CHAUFFEURS TO MANY TOP FORD EXECUTIVES LAST MONTH HE OUSTED JOHN E HARDIMAN AS HEAD OF FORD'S GERMAN UNIT PARTLY BECAUSE MR HARDIMAN WASN'T CUTTING COSTS AGGRESSIVELY ENOUGH THAT IGNITED AN UNUSUAL PUBLIC DISPUTE BETWEEN MR HARDIMAN AND FORD THAT WAS RECENTLY SETTLED MR NASSER SAID MR HARDIMAN IS TO GO ON SPECIAL ASSIGNMENT UNTIL HE RETIRES IN MARCH 1994 THROUGH AUGUST EUROPEAN CAR SALES ARE RUNNING 167 BELOW LAST YEAR WE'RE IN THE DEPTHS OF THE MOST SERIOUS AUTO SALES DEPRESSION IN 20 YEARS MR NASSER SAID AUGUST SALES WERE OFF 56 FROM A YEAR EARLIER REFLECTING A SEASONAL SURGE IN THE UK MARKET WHICH IS THE ONLY MAJOR EUROPEAN MARKET THAT'S RECOVERING MR NASSER SAID ONE PRODUCT OF FORD'S HEAVY INVESTMENT PROGRAM THE MIDSIZE MONDEO SEDAN INTRODUCED IN EUROPE THIS YEAR AFTER A 6 BILLION DEVELOPMENT PROGRAM IS HELPING TO REVITALIZE FORD OF EUROPE'S IMAGE THE CAR IS TO BE INTRODUCED IN THE US MARKET NEXT YEAR MR NASSER SAID STRONG MONDEO SALES WERE RESPONSIBLE FOR FORD OF EUROPE'S AUGUST SALES UPSURGE TO 151000 UNITS ITS BEST SALES MONTH SINCE MARCH 1992 BUT INDUSTRY ANALYSTS QUESTION WHETHER FORD WILL RECOUP ITS INVESTMENT SOON IN MARCH AFTER PRICING THE MONDEO BETWEEN 11580 AND 18080 17687 AND 27615 FORD HAD TO QUICKLY DROP THE PRICE TO BETWEEN 11200 AND 17450 WHAT'S MORE THE BULK OF MONDEO SALES HAS BEEN IN BRITAIN WHERE HEAVY FLEET SALES AND VOLUME DISCOUNTS ARE THE NORM COMPETITORS SAY FORD HAS BEEN FORCED TO MATCH THEIR DISCOUNTS DESPITE THE NORMALLY INTENSE DEMAND FOR A NEW PRODUCT OTHERS ARGUE THAT FORD'S COSTCUTTING EFFORTS AREN'T GOING FAR ENOUGH THEY'VE STILL GOT TOO MANY PEOPLE SAYS DANIEL T JONES PROFESSOR OF MANAGEMENT AT CARDIFF BUSINESS SCHOOL IN WALES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FORD SHARES ROSE 375 CENTS TO 50875 9309080162 930908 MARKETING & MEDIA KING WORLD BUYS STAKE IN DEVELOPER OF VIDEO GAMES BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL CRYSTAL DYNAMICS INC SAID IT SOLD A 10 STAKE TO KING WORLD PRODUCTIONS INC THE TV DISTRIBUTOR RESPONSIBLE FOR WHEEL OF FORTUNE JEOPARDY AND THE OPRAH WINFREY SHOW TERMS WEREN'T DISCLOSED BUT INDIVIDUALS CLOSE TO THE TRANSACTION VALUED THE INVESTMENT AT 75 MILLION THIS IS SAID TO MATCH LAST JULY'S ACQUISITION OF A 10 STAKE IN CRYSTAL BY TIME WARNER INC'S HOME BOX OFFICE UNIT KING WORLD BASED IN NEW YORK WILL SUPPLY ONE YETTOBEDETERMINED MEMBER TO CRYSTAL'S 10PERSON BOARD ALTHOUGH SMALL AND CLOSELY HELD CRYSTAL A DEVELOPER OF VIDEO GAMES HAS BEEN A PARTICULARLY WELLPUBLICIZED EXAMPLE OF A COMPANY TRYING TO MELD HOLLYWOOD AND VIDEO GAMES IN THE TREND TOWARD INTERACTIVE MULTIMEDIA THE COMPANY'S FIRST GAME TITLE CRASH N BURN WILL BE BUNDLED OR ENCLOSED FREE WITH THE FIRST GAME MACHINES MANUFACTURED BY MATSUSHITA ELECTRIC INDUSTRIAL CO'S PANASONIC UNIT AND SOLD FOR USE THIS FALL WITH THE NEW 32BIT 3DO GAME SYSTEM A BIT IS A UNIT OF DIGITAL INFORMATION CURRENT GAME SYSTEMS FROM SEGA ENTERPRISES LTD AND NINTENDO CO HAVE 16 BITS STRAUSS ZELNICK CRYSTAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE KING WORLD TRANSACTION COMPLETES CRYSTAL'S EFFORTS TO FIND TWO STRATEGIC PARTNERS IN THE ENTERTAINMENT BUSINESS AND THAT ENOUGH CAPITAL HAS BEEN RAISED TO FUND THE COMPANY SUCCESSFULLY TO CASHFLOW BREAKEVEN NOW THAT PRODUCTS ARE COMING TO MARKET CRYSTAL BASED IN PALO ALTO CALIF AND FORMED LAST YEAR BY FORMER EXECUTIVES OF SEGA AND AMIGA COMPUTER CO ALSO HAS EQUITY FUNDING FROM TECHNOLOGY PARTNERS AND KLEINER PERKINS CAULFIELD & BYERS MR ZELNICK SAID KING WORLD ALREADY IS FOCUSED ON INTERACTIVE ENTERTAINMENT BECAUSE THEY'RE IN THE GAME BUSINESS EVEN OPRAH WINFREY IS INTERACTIVE THERE WILL BE NATURAL CROSSOVERS BUT ALL ELECTRONIC RIGHTS TO THE WILDLY POPULAR WHEEL OF FORTUNE AND JEOPARDY ALREADY ARE OWNED BY SONY CORP WHICH OWNS THE COMPANY THAT PRODUCED THOSE SHOWS SONY IS A MAJOR COMPETITOR TO CRYSTAL IN SOFTWARE AND TO THE 3DO SYSTEM IN HARDWARE FOR 1992 KING WORLD POSTED NET INCOME OF 949 MILLION ON REVENUE OF 5032 MILLION WITH FOUR OF THE FIVE TOPRATED SHOWS IN FIRSTRUN SYNDICATION THE COMPANY GENERATES A GREAT DEAL OF CASH CURRENTLY POSSESSING ABOUT 400 MILLION WITH NO DEBT 9309080161 930908 INTERNATIONAL DANISH INDUSTRIAL EMPLOYMENT COPENHAGEN DANISH EMPLOYMENT WITHIN THE INDUSTRIAL SECTOR FOR JUNE ROSE 12 TO 356000 PERSONS FROM 351800 IN MAY DANMARKS STATISTIK THE NATIONAL STATISTICS AGENCY SAID THE INCREASE WAS LARGELY DUE TO A 19 RISE IN THE NUMBER OF BLUECOLLAR WORKERS IN INDUSTRY TO 236400 IN JUNE FROM 232000 IN MAY WHITECOLLAR EMPLOYEES IN THE INDUSTRIAL SECTOR FELL TO 119600 PERSONS IN JUNE FROM 119800 IN MAY 1993 9309080160 930908 ECONOMY OIL PRICES SLIDE AS OUTPUT CLIMBS DEMAND SHRINKS BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES FELL AS ESTIMATES OF OPEC OIL OUTPUT ROSE AND THE INTERNATIONAL ENERGY AGENCY LOWERED ITS DEMAND PROJECTIONS FOR THE REST OF THE YEAR THE IEA MONTHLY REPORT AS WELL AS A HIGHRANKING OFFICIAL OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BOTH REPORTED YESTERDAY THAT THE ORGANIZATION'S CRUDE PRODUCTION HAS GROWN DURING THE LAST MONTH ESTIMATES SUGGEST THAT OPEC IS PUMPING AS MUCH AS 12 MILLION BARRELS A DAY ABOVE ITS QUOTA OF 235 MILLION BARRELS DAILY THE IEA A PARISBASED INTERNATIONAL ENERGY ORGANIZATION ALSO LOWERED ITS ANTICIPATED DEMAND ESTIMATES FOR THE THIRD AND FOURTH QUARTERS BY 300000 BARRELS A DAY THE NEWS IS DEFINITELY BEARISH SAID WILLIAM BROWN III OF WH BROWN & CO INC IN NEW YORK OPEC WILL HAVE TO AGREE TO REDUCE ITS PRODUCTION AT ITS MEETING LATER THIS MONTH AND THAT WILL BE PARTICULARLY HARD FOR A NUMBER OF OIL MINISTERS CRUDE OIL FOR OCTOBER DELIVERY SKIDDED BY 66 CENTS A BARREL TO 1707 A LITTLE MORE THAN A WEEK AGO OIL PRICES HAD CLIMBED TO MORE THAN 19 A BARREL MUCH OF THAT GAIN WAS ATTRIBUTED TO FEARS THAT A NATIONWIDE STRIKE OVER CONTROL OF THE GOVERNMENT IN NIGERIA WOULD STOP THE FLOW OF OIL EXPORTS THERE PRICES FOR OIL PRODUCTS TUMBLED AS WELL YESTERDAY WITH THE PRICE OF GASOLINE FOR OCTOBER DELIVERY HITTING 4894 CENTS A GALLON ITS LOWEST LEVEL SINCE FEBRUARY 1989 THE IEA REPORT POINTED TO SLIGHTLY HIGHER OUTPUT FROM SAUDI ARABIA AND KUWAIT AS ONE OF THE REASONS FOR THE GROUP'S INCREASING PRODUCTION IEA FIGURES ALSO SHOW THAT A NUMBER OF OTHER OPEC MEMBERS HAVE BEEN PUMPING BEYOND THEIR QUOTAS AS WELL THERE HASN'T BEEN MUCH BULLISH NEWS LATELY TO PROP UP PRICES MOST OIL WORKERS IN NIGERIA HAVE RETURNED TO WORK AND INDUSTRY EXPERTS POINT OUT THAT EVEN DURING THE STRIKE SKELETON CREWS WERE ABLE TO KEEP THE FIELDS PRODUCING AND TANKERS LOADING ON THE SUPPLY SIDE THE MARKET ALSO IS BRACING ITSELF FOR ONE OF THE BIGGEST QUARTERTOQUARTER INCREASES IN THE PRODUCTION OF NORTH SEA OIL AS MANY AS FIVE NEW OIL FIELDS ARE EXPECTED TO COME ON LINE BY THE END OF THE YEAR ANALYSTS ESTIMATE THAT ALTHOUGH NONE OF THE FIELDS ARE GIANTS THEIR TOTAL OUTPUT COULD TOP 500000 BARRELS A DAY THAT'S A GOOD CHUNK OF CRUDE MR BROWN SAID ADDING AND THE LAST THING OPEC NEEDS CONCERN OVER THE POSSIBILITY OF RENEWED IRAQI EXPORTS ALSO HAS RETURNED MOST INDUSTRY OFFICIALS DON'T EXPECT IRAQI CRUDE TO ENTER THE MARKET BEFORE THE END OF THIS YEAR BUT BASED ON REPORTS THAT THE CLINTON ADMINISTRATION MIGHT ALLOW A LIFTING OF THE OIL EMBARGO THEY DO PRECEIVE THAT THERE IS SOME MOVEMENT TO SET UP A PROCESS ALLOWING SUCH EXPORTS THERE IS A LOT OF UNDERLYING ANXIETY REGARDING IRAQ SAID ANDREW LEBOW OIL ANALYST FOR ED& F MAN INTERNATIONAL FUTURES INC 9309080159 930908 WHO'S NEWS COMMANDER AIRCRAFT CO COMMANDER AIRCRAFT CO BETHANY OKLA N GENE CRISS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS ELECTED TO THE BOARD OF THIS AIRPLANE MANUFACTURER MR CRISS 50 YEARS OLD SUCCEEDS WILLIAM A BOETTGER AS A DIRECTOR MR BOETTGER RESIGNED LAST MONTH AS PRESIDENT OF THE COMPANY THE PRESIDENT'S POST HASN'T BEEN FILLED YET 9309080158 930908 TECHNOLOGY BRIEF CHIRON CORP PACT REACHED WITH SYNTEX FOR DEVELOPMENT OF DRUGS CHIRON CORP AND SYNTEX CORP SAID THEY PLAN TO JOINTLY DEVELOP DRUGS FOR THE TREATMENT OF ARTHRITIC DISEASES TUMORS AND OTHER DISEASES UNDER TERMS OF THE AGREEMENT SYNTEX A PALO ALTO CALIF HEALTHCARE COMPANY WILL HAVE EXCLUSIVE WORLDWIDE RIGHTS TO DEVELOP AND MARKET DRUGS USED TO TREAT INFLAMMATION ASTHMA AND ALLERGIES CHIRON AN EMERYVILLE CALIF BIOTECHNOLOGY COMPANY WILL HAVE EXCLUSIVE RIGHTS TO DEVELOP AND MARKET DRUGS FOR INFECTIOUS DISEASES ONCOLOGY AND OPHTHALMOLOGY EACH COMPANY HAS THE OPTION TO COFUND THE OTHER COMPANY'S DEVELOPMENT IN RETURN FOR ROYALTIES FINANCIAL TERMS OF THE DEAL WEREN'T DISCLOSED 9309080157 930908 SOUTHWEST AIR AUGUST TRAFFIC DALLAS SOUTHWEST AIRLINES CO SAID ITS AUGUST TRAFFIC INCREASED 206 THE AIRLINE FLEW 16 BILLION REVENUE PASSENGER MILES UP FROM 13 BILLION MILES IN AUGUST 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 722 FROM 691 FOR THE FIRST EIGHT MONTHS OF THE YEAR TRAFFIC ROSE 21 TO 11 BILLION REVENUE PASSENGER MILES FROM 91 BILLION MILES LOAD FACTOR CLIMBED TO 685 FROM 656 9309080156 930908 WHO'S NEWS EXPLOSIVE FABRICATORS INC EXPLOSIVE FABRICATORS INC LOUISVILLE COLO PAUL LANGE 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS METALPRODUCTS MANUFACTURER HE SUCCEEDS DAVID FEASBY WHO SERVED AS INTERIM PRESIDENT AFTER THE FORMER TOP EXECUTIVE WILLIAM F SHARP TOOK ANOTHER POST AT THE COMPANY MR LANGE WHO WILL BEGIN HIS NEW JOB BY OCT 1 FORMERLY WAS VICE PRESIDENT AND GENERAL MANAGER OF THE ENGINEERED MATERIALS GROUP OF ENGELHARD CORP ISELIN NJ 9309080155 930908 BUSINESS BRIEF AKZO NV SALT MAKER AGREES TO ACQUIRE MAJORITY STAKE IN SAGA FOOD AKZO NV SAID IT AGREED TO ACQUIRE AN UNSPECIFIED MAJORITY STAKE IN SAGA FOOD INGREDIENTS AS OF DENMARK TERMS WEREN'T DISCLOSED AND AKZO DECLINED TO RELEASE FINANCIAL DETAILS ABOUT SAGA THE DUTCH COMPANY DIDN'T HAVE A STAKE IN SAGA PREVIOUSLY THOUGH IT HAD SOME COMMERCIAL TIES THE ACQUISITION APPEARS TO BE AIMED AT GAINING ACCESS TO SAGA'S SALT LINES THE DANISH COMPANY HAS A WHOLLY OWNED SALT MANUFACTURING SUBSIDIARY IN ICELAND CALLED ICELANDIC SALT CO OF REYKJAVIK WITH 15 MILLION METRIC TONS OF CAPACITY AKZO IS THE WORLD'S LARGEST SALT PRODUCER IT ALSO HAS BASIC AND SPECIALTY CHEMICALS LINES AS WELL AS PHARMACEUTICAL AND COATINGS BUSINESSES AKZO SAID IT ALREADY IS A DISTRIBUTOR OF ICELANDIC SALT'S MINERAL SALT UNDER THE SAGASALT BRAND 9309080154 930908 BUSINESS BRIEF BRINKER INTERNATIONAL INC PACT FOR PUSH INTO AUSTRALIA IS SIGNED WITH COLES MYER BRINKER INTERNATIONAL INC DALLAS SAID IT SIGNED A LICENSING AGREEMENT WITH COLES MYER LTD MELBOURNE AUSTRALIA TO LEAD BRINKER'S PUSH INTO AUSTRALIA AND NEW ZEALAND UNDER THE ACCORD COLES MEYER ONE OF AUSTRALIA'S BIGGEST RETAILERS WILL DEVELOP AS MANY AS 50 OF BRINKER'S CHILI'S GRILL & BAR RESTAURANTS DURING THE NEXT SEVEN YEARS FURTHER TERMS WEREN'T DISCLOSED BRINKER WHICH ALSO OPERATES THE RAMANO'S MACARONI GRILL GRADY'S AMERICAN GRILL AND SPAGEDDIES CHAINS OPENED ITS FIRST INTERNATIONAL CHILI'S IN CANADA IN 1991 THE COMPANY HAS SINCE ADDED RESTAURANTS IN MONTREAL MEXICO CITY AND MONTERREY MEXICO 9309080153 930908 BUSINESS BRIEF CHICAGO & NORTH WESTERN HOLDINGS FLOOD STRIKE TAX TO TRIGGER THIRDQUARTER NET DECREASE CHICAGO & NORTH WESTERN HOLDINGS CORP SAID IT EXPECTS TO REPORT THAT THE COMBINATION OF MIDWEST FLOODING A MINERS' STRIKE AND TAX CHARGES REDUCED ITS THIRDQUARTER NET INCOME ABOUT 63 THE RAILROAD HOLDING COMPANY SAID IT PROBABLY WILL REPORT IN OCTOBER THAT IT EARNED 72 MILLION OR ABOUT 16 CENTS A SHARE ON REVENUE OF ABOUT 257 MILLION FOR THE QUARTER ENDING SEPT 30 CHICAGO & NORTH WESTERN HASN'T DECIDED WHETHER TO TAKE AN EXTRAORDINARY PRETAX CHARGE OF 16 MILLION IN THE QUARTER TO REFLECT A BANK DEBT REFINANCING TO REDUCE INTEREST EXPENSE THE COMPANY WHICH WENT PUBLIC IN APRIL 1992 EARNED 195 MILLION OR 45 CENTS A SHARE ON REVENUE OF 2534 MILLION FOR THE 1992 THIRD QUARTER CORE RAILROAD FREIGHT REVENUE PROBABLY WILL DECLINE ABOUT 15 FROM A YEAR EARLIER THE COMPANY SAID FLOODING REDUCED REVENUE BY ABOUT 12 MILLION WHILE A STRIKE AT IRONORE MINES IN MICHIGAN'S UPPER PENINSULA COST IT ABOUT 2 MILLION IN REVENUE 9309080151 930908 INTERNATIONAL AUSTRIA UNEMPLOYMENT STEADY VIENNA AUSTRIA'S UNEMPLOYMENT RATE WAS UNCHANGED IN AUGUST FROM ITS JULY LEVEL AT 41 THE GOVERNMENT SAID HOWEVER THE UNEMPLOYMENT RATE WAS UP 03 PERCENTAGE POINT FROM 38 IN AUGUST 1992 A TOTAL OF 186342 PEOPLE ARE WITHOUT WORK IN AUSTRIA DURING THE CURRENT RECESSION IN WESTERN EUROPE AUSTRIA'S UNEMPLOYMENT RATE HAS REMAINED SIGNIFICANTLY BELOW THE LEVELS IN MOST COUNTRIES OF THE ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT 9309080150 930908 BUSINESS BRIEF TRANSCISCO INDUSTRIES INC COURT CLEARS PLAN TO EMERGE FROM CHAPTER 11 PROTECTION TRANSCISCO INDUSTRIES INC SAID A FEDERAL COURT APPROVED ITS PLAN TO EMERGE FROM PROTECTION UNDER CHAPTER 11 OF FEDERAL BANKRUPTCY LAWS UNDER TERMS OF THE PLAN THE SAN FRANCISCO RAILCAR AND EQUIPMENT LEASING COMPANY WILL EXCHANGE 3 MILLION OF A 5 MILLION NOTE FROM PLM INTERNATIONAL INC AND 34 MILLION PLM SHARES FOR 163 MILLION OF TRANSCISCO'S SUBORDINATED DEBT CURRENTLY IN DEFAULT PLM IS ALSO A TRANSPORTATION EQUIPMENT LEASING COMPANY IN SAN FRANCISCO THE PLAN IS EXPECTED TO BECOME EFFECTIVE WITHIN THE NEXT TWO WEEKS PENDING THE SIGNING OF A FORMAL ORDER BY A BANKRUPTCYCOURT JUDGE A TRANSCISCO SPOKESMAN SAID TRANSCISCO SAID IT WILL RETAIN ALL THREE OF ITS OPERATING UNITS WHICH INCLUDE A RAILROAD EQUIPMENT MAINTENANCE COMPANY A RAILCAR LEASING COMPANY AND AN INTERNATIONAL TRADING COMPANY TRANSCISCO FILED FOR BANKRUPTCYLAW PROTECTION IN JULY 1991 FOLLOWING THE FAILURE OF ONE OF ITS RAIL LINES 9309080149 930908 BUSINESS BRIEF TWO FIRMS CREATE AUCTION FOR TRADE OF SMOG RIGHTS IN SOUTHERN CALIFORNIA TWO COMPANIES ARE PLANNING TO RUN A PRIVATE AUCTION OF RIGHTS TO POLLUTE THE AIR OF SOUTHERN CALIFORNIA AS REGULATORS THERE CONSIDER INSTALLING A SWEEPING MARKETBASED SYSTEM OF REDUCING SMOG POLLUTIONRIGHTS TRADING HAS BEEN GOING FOR YEARS IN SOUTHERN CALIFORNIA AS POLLUTERS STRUGGLE TO COMPLY WITH THE NATION'S MOST STRINGENT LOCAL AIRQUALITY STANDARDS TRADING OF RIGHTS TO POLLUTE THE ENVIRONMENT HAS BEEN ALLOWED SINCE THE 1970S UNDER REGULATIONS OF THE US ENVIRONMENTAL PROTECTION AGENCY NOW CALIFORNIA'S SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT OR AQMD IS CONSIDERING A PLAN THAT WOULD CREATE THE MOST COMPREHENSIVE LOCAL MARKETBASED POLLUTIONCONTROL SYSTEM IN THE COUNTRY IT IS MODELED AFTER A NATIONAL MARKETBASED PLAN TO REDUCE EMISSIONS OF SULFUR DIOXIDE BY POWERGENERATING UTILITIES WHICH WAS CREATED WHEN CONGRESS AMENDED THE CLEAN AIR ACT IN 1990 CANTOR FITZGERALD LP A BROKERAGE FIRM AND DAMES & MOORE A LOS ANGELES ENVIRONMENTAL AND ENGINEERING CONSULTING COMPANY WHICH ARE INVOLVED IN THE FLEDGLING SULFURDIOXIDE POLLUTION MARKET SAID YESTERDAY THAT THEY PLAN TO JOINTLY SPONSOR A COMPUTERASSISTED POLLUTIONRIGHTS AUCTION IN CALIFORNIA EARLY NEXT YEAR THE AUCTION GREATLY EXPANDS THE OPPORTUNITY FOR BUYERS AND SELLERS TO MAKE EXACTLY THE TYPES OF TRADES THEY SEEK AT PRICES SET BY THE MARKETS SAID CARLTON BARTELS DIRECTOR OF CANTOR FITZGERALD ENVIRONMENTAL BROKERAGE SERVICES A UNIT OF THE BROKERAGE FIRM THE FIRMS' MOVE TO SET UP AN OFFEXCHANGE CALIFORNIA POLLUTIONRIGHTS MARKET PARALLELS THE ACTIVITY OF BROKERAGE FIRMS IN THE NATIONAL SULFURDIOXIDE POLLUTION MARKET THERE A FEW SUCH FIRMS INCLUDING CANTOR FITZGERALD ARE CREATING A SMALL BUT VIBRANT MARKET THAT SERVES POWERGENERATING COMPANIES AFFECTED BY THE CLEAN AIR ACT CALIFORNIA'S AQMD IS EXPECTED TO VOTE NEXT MONTH ON THE PROPOSED MARKETBASED PLAN IT CALLS RECLAIM IF THE PLAN IS ENACTED THE CANTOR FITZGERALD AND DAMES & MOORE AUCTION WILL INCLUDE BOTH RECLAIM POLLUTION CREDITS AND THE CREDITS THAT HAVE BEEN TRADED IN THE PAST UNDER EPA PROGRAMS IF THE RECLAIM PLAN ISN'T APPROVED THE FIRMS' AUCTION WILL BE RESERVED TO EPAPROGRAM CREDITS MANY COMPANIES HAVE SUSPENDED THEIR EMISSIONTRADING ACTIVITY AWAITING THE FATE OF RECLAIM SAID JOSH MARGOLIS DIRECTOR OF DAMES & MOORE'S AIRTRADE SERVICES GROUP IF THE RECLAIM RULES ARE ADOPTED THERE WILL BE A NEED TO MAKE A CLEAN TRANSITION TO THE NEW PROGRAM 9309080147 930908 LUCAS INDUSTRIES TO ACQUIRE UNIT RESTON VA LUCAS INDUSTRIES INC A UNIT OF LUCAS INDUSTRIES PLC IN BIRMINGHAM ENGLAND SAID IT AGREED TO ACQUIRE DOWTY FUEL SYSTEMS FROM TI GROUP PLC FOR 287 MILLION IN A NEWS RELEASE LUCAS SAID THE CHELTENHAM ENGLAND MAKER OF ENGINE CONTROLS AND ACCESSORIES HAD 1992 SALES OF MORE THAN 304 MILLION LUCAS PLANS TO MERGE THE UNIT WITH ITS LUCAS ENGINE CONTROL SYSTEMS IT NOTED THAT DOWTY'S DEDICATED ALTERNATOR PRODUCT LINE IS NOT INCLUDED IN THE DEAL 9309080144 930908 ADAMS EXPRESS RIGHTS OFFERING BALTIMORE ADAMS EXPRESS CO SAID IT RAISED 1166 MILLION IN NET PROCEEDS FROM A RIGHTS OFFERING THE CLOSEDEND FUND HAD NET ASSETS ON AUG 31 OF MORE THAN 734 MILLION 9309080143 930908 CORPORATE FOCUS MAZDA PONDERS ITS ROUTE THROUGH A BUMPY FUTURE JAPANESE CAR MAKER FACES FALLING SALES AND NEEDS BIGGERSELLING MODELS BY MICHAEL WILLIAMS AND JOHN BUSSEY STAFF REPORTERS OF THE WALL STREET JOURNAL HIROSHIMA JAPAN MAZDA MOTOR CORP IS TRYING TO RIDE OUT A ROUGH 1993 BUT MAY FIND ITS FUTURE IS EVEN BUMPIER I'VE NEVER ENCOUNTERED A SITUATION THIS SERIOUS IN 38 YEARS WITH MAZDA SAYS SENIOR MANAGING DIRECTOR MICHINORI YAMANOUCHI MAZDA'S TOP PRODUCT PLANNER WE ARE PONDERING WHERE TO GO NEXT CONSIDER MAZDA'S LITANY OF WOES ITS VEHICLE SALES PLUNGED 17 IN JAPAN AND FELL 63 IN THE US IN THE FIRST SEVEN MONTHS OF THIS YEAR LAST WEEK IN A MOVE THAT A SPOKESMAN CONTENDED WOULD MAINTAIN MAZDA'S COMPETITIVENESS IN THE MARKETPLACE THE COMPANY SAID THE US BASE PRICE OF CERTAIN 1994 MODEL SEDANS WON'T CHANGE FROM THE CURRENT LEVEL AND THAT MOST OTHER NEW MODELS WILL BE PRICED JUST 18 TO 44 HIGHER THE SPOKESMAN ACKNOWLEDGED HOWEVER THAT THE STRONG YEN IS FORCING MAZDA TO TAKE STEPS TO CUT COSTS IN MANY AREAS WHAT DOES ALL THIS MEAN FOR THE BOTTOM LINE FOR THE YEAR ENDING NEXT MARCH 31 THE COMPANY EXPECTS TO POST A 12 BILLION YEN 1146 MILLION PRETAX LOSS MAZDA ISN'T IDLING IT HAS MODIFIED THE COSTLY EXPANSION STRATEGY IT PLOTTED IN THE BOOMING 1980S THE COMPANY HAS SCALED BACK ITS AMBITIOUS AUTOSALES TARGET FOR JAPAN ITS BIGGEST SINGLE MARKET BY ABOUT 30 TO 550000 CARS A YEAR BY 1998 IT KILLED PLANS FOR A NETWORK OF LUXURYCAR DEALERSHIPS IN THE US LAST YEAR AND SCALED BACK ITS ESTIMATE OF US VEHICLE SALES FOR 1998 BY 20 TO 400000 CARS MAZDA SOLD 338683 CARS IN THE US IN 1992 THE COMPANY HAS ALSO DISMISSED 375 EMPLOYEES IN AMERICA THIS YEAR INCLUDING THE HIGHESTRANKING AMERICAN EXECUTIVE AND FOUR OTHER TOP EXECUTIVES MAZDA IS FACING UP TO REALITY BUT IN INTERVIEWS AT MAZDA HEADQUARTERS IN THIS SOUTHERN JAPANESE CITY MR YAMANOUCHI AND OTHER TOP MAZDA EXECUTIVES SEEM UNSURE OF JUST HOW TO NEGOTIATE THE DEEP POTHOLES THAT POCK THE ROAD AHEAD SUCH AS THE COMPANY'S NEED TO COME UP WITH BIGGERSELLING CARS TO BALANCE ITS LINEUP OF NICHE VEHICLES MAZDA HAS PULLED THROUGH TOUGH TIMES BEFORE WHEN ITS EARNINGS CRASHED DURING THE OIL CRISES OF THE 1970S MAZDA GOT HELP FROM ITS BANKERS AND FROM FORD MOTOR CO WHICH BOUGHT INTO THE STRUGGLING COMPANY FORD NOW OWNS 25 OF MAZDA BUT WHILE MAZDA SAYS IT DOESN'T FACE TODAY THE FINANCIAL CRUNCH IT ENDURED BACK THEN ITS PROBLEMS NOW ARE MORE NUMEROUS AND MORE COMPLEX FOR ONE THING FORD PROBABLY WON'T COME RIDING TO THE RESCUE SHOULD MAZDA NEED THE HELP FORD'S NOT PLANNING ANY MAJOR INVESTMENT IN ANY OTHER COMPANY AT THIS TIME SAYS FORD CHAIRMAN HAROLD POLING WHEN ASKED ABOUT MAZDA MORE CRITICALLY MAZDA HAS SADDLED ITSELF WITH A VAST NETWORK OF FIVE DIFFERENT DEALERSHIP CHAINS IN JAPAN WHICH IT MUST KEEP FILLING WITH A LARGE NUMBER OF DIFFERENT CARS DOING SO COSTS BIG MONEY LIKE OTHER JAPANESE CAR MAKERS MAZDA RELIES HEAVILY ON OVERSEAS SALES BUT IT EXPORTS FROM JAPAN A RELATIVELY HIGH 80 OF THE CARS IT SELLS ABROAD RATHER THAN BUILDING THEM IN THE OVERSEAS MARKETS THAT'S A DISADVANTAGE JAPAN'S CAR MAKERS FACE STRICT EXPORT LIMITS IN EUROPE AND THE RISING YEN IS FORCING THEM TO RAISE THEIR PRICES ABROAD ALL THIS AT A TIME WHEN JAPAN'S CAR MARKET HAS MATURED PERHAPS MAZDA'S THORNIEST PROBLEM THOUGH IS ITS STRICT ADHERENCE TO THE PRINCIPLE THAT FOUNDER JUJIRO MATSUDA ARTICULATED BACK IN THE 1920S A BUSINESS MUST HAVE A UNIQUE PRODUCT WITH THAT THINKING IN MIND MAZDA HAS GROWN BY CRAFTING SOME DASHING TECHNICALLY ADVANCED SPORTS CARS LIKE ITS POPULAR MIATA CONVERTIBLE THE SPORTY CARS MAZDA FIGURED WOULD NOT ONLY EARN A TIDY PROFIT BUT WOULD ALSO ATTRACT CUSTOMERS TO ITS MASSMARKET VEHICLES SUCH AS THE 626 SEDAN TODAY THE STRATEGY NEEDS AN OVERHAUL SAYS JARDINE FLEMING SECURITIES LTD ANALYST JONATHAN DOBSON MAZDA HAS SOME GREAT CARS HE SAYS BUT NO STAPLE PRODUCT' THAT SELLS IN HUGE VOLUMES LIKE HONDA MOTOR CO'S ACCORD MAZDA'S SPORTS CARS ARE LOVED BY CAR BUFFS BUT THEY SELL IN SMALL NUMBERS MAZDA SOLD ABOUT 53000 MIATA CARS WORLDWIDE LAST YEAR IN THE HUGE MIDSIZE SEGMENT MEANWHILE MAZDA TRAILS THE PACK IT SOLD ABOUT 274000 OF ITS 626 MODEL WORLDWIDE IN 1992 HONDA SOLD MORE THAN 390000 ACCORDS IN AMERICA ALONE MAZDA'S LOWVOLUME NICHE STRATEGY SHOWS AT ITS HALFOWNED CAR PLANT IN FLAT ROCK MICH LAST THURSDAY MORNING A NEW 626 SEDAN A SPORTY MX6 AND A FORD PROBE CAME ONE AFTER THE OTHER DOWN THE ASSEMBLY LINE WHILE SUCH FLEXIBLE MANUFACTURING ISN'T UNUSUAL IT IS DIFFICULT TO DO WELL AND MAZDA OFFICIALS IN THE US CONCEDE THAT THERE HAVE BEEN QUALITY PROBLEMS IN THE MOST RECENT JD POWER & ASSOCIATES INITIALQUALITY STUDY MAZDA PRODUCTS RANKED LAST AMONG THE JAPANESE CAR MAKERS I BELIEVE THERE IS A LOT OF ROOM FOR IMPROVEMENT ACKNOWLEDGES YOJI TOYAMA PRESIDENT OF MAZDA NORTH AMERICA INC COMPANY AND UNION OFFICIALS MAINTAIN THAT QUALITY AT THE MICHIGAN PLANT WHICH IS JOINTLY OWNED BY FORD HAS BEEN IMPROVING MAZDA'S PRESIDENT YOSHIHIRO WADA ARGUES THAT MAZDA IS POISED FOR GROWTH WHEN THE MARKET IMPROVES MAZDA WHICH HAS LAUNCHED AN AMBITIOUS COSTCUTTING PROGRAM HOPES TO POST A PRETAX PROFIT OF 60 BILLION YEN FOR THE YEAR ENDING MARCH 31 1998 EVEN IF THE YEN IS TRADING AT 100 TO THE DOLLAR MAZDA HAS BUILT UP CRUCIAL PRODUCTION CAPACITY BY OPENING A NEW HIGHTECH PLANT IN JAPAN MR WADA SAYS THE COSTLY PLANT IS NOW RUNNING AT JUST 40 OF ITS ANNUAL CAPACITY A PAINFULLY INEFFICIENT RATE BUT MR WADA SAYS OUTPUT SHOULD PICK UP WITH DOMESTIC AUTO SALES SOMETIME NEXT YEAR MAZDA'S FIVECHANNEL SALES NETWORK IN JAPAN ADDS THE FORMER BANKER IS AN ASSET NOT AN ALBATROSS MAZDA SIMPLY NEEDS TO FILL IT WITH NEW CARS TWO NEW MODELS FOR JAPAN THIS YEAR A SMALL CAR UNVEILED RECENTLY AND A MIDSIZE LUXURY CAR TO COME WILL PLUG IMPORTANT HOLES MAZDA PROMISES FOR THE US MARKET MAZDA SAYS IT WILL ROLL OUT A NEW LUXURY SEDAN NEXT YEAR ALSO MAZDA HAS LONG WANTED TO BUILD CARS IN EUROPE BUT HASN'T BEEN ABLE TO FIND A PARTNER IT HAD BEEN COUNTING ON HELP FROM FORD WHICH HAS FACTORIES IN EUROPE BUT THAT PLAN FELL THROUGH FOR THE LONG HAUL MAZDA INSISTS IT WILL STICK WITH ITS SPORTY IMAGE AND ITS NICHE CARS EVEN THOUGH IT KNOWS IT NEEDS TO SELL MORE CARS IN THE MASSMARKET SMALL AND MIDSIZE SEGMENTS WE SEE NO PARTICULAR NEED TO CHANGE MAZDA'S IMAGE SAYS SENIOR MANAGING DIRECTOR MASAHIRO UCHIDA MAZDA'S HEAD OF OVERSEAS BUSINESS AND MARKETING MAZDA IS NOT A GIANT CAR COMPANY WE MUST MAINTAIN AN IMAGE OF UNIQUENESS THE PROBLEM IS BEING UNIQUE IS HARDER THAN IT ONCE WAS BECAUSE MOST TOP AUTO MAKERS NOW HAVE WIDE LINEUPS SHORT PRODUCT CYCLES AND EXCELLENT QUALITY THE GAME TODAY PRODUCT MAN MR YAMANOUCHI SAYS IS PRICE COMPETITIVENESS WHICH MAKES IT EVEN TOUGHER FOR A MIDSIZE CAR MAKER LIKE MAZDA TO COMPETE WITH THE LIKES OF TOYOTA MOTOR CORP THE NO 1 JAPANESE PRODUCER AS A RESULT AUTO ANALYSTS COMMONLY MENTION MAZDA AS A POTENTIAL TARGET OF AUTOINDUSTRY CONSOLIDATION MAZDA'S EXECUTIVES COUNTER THAT THE REPORTS OF MAZDA'S PROBLEMS ARE EXAGGERATED WE AREN'T AS WEAK AS PEOPLE SAY SAYS MR UCHIDA DISMISSING THE IDEA THAT MAZDA COULD BE ABSORBED BY ANOTHER CAR MAKER NOR DOES MAZDA NEED A CAPITAL INFUSION SAY TOP MAZDA EXECUTIVES WE HAVE NO CASH PROBLEM MR WADA EXPLAINS NOTE ALL FIGURES CONVERTED TO US DOLLARS AT CURRENT EXCHANGE RATE 9309080142 930908 INTERNATIONAL RUSSIA 5 REPUBLICS SIGN PACT TO KEEP RUBLE AS CURRENCY BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW FIVE FORMER SOVIET REPUBLICS SIGNED A PACT WITH RUSSIA TO KEEP THE RUBLE AS A COMMON CURRENCY AND TO FOLLOW MOSCOW'S LEAD IN MONETARY CREDIT AND OTHER ECONOMIC POLICIES BUT RUSSIA'S OWN ATTEMPT TO MAINTAIN A TIGHTMONEY POLICY IS AGAIN UNDER ATTACK BY CONSERVATIVES IN ITS GOVERNMENT THE SIXWAY AGREEMENT ON FORMING A SOCALLED RUBLE ZONE CAME AS MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES PREPARED TO SIGN A DIFFERENT LOOSER ECONOMIC UNION LATER THIS MONTH IT ALSO FOLLOWS A THREEWAY AGREEMENT AMONG RUSSIA BELARUS AND UKRAINE TO PURSUE ECONOMIC TIES ALONG THE LINES OF THE 12MEMBER EUROPEAN COMMUNITY THE ESTABLISHMENT OF A NEW RUBLE ZONE AND THE ESTABLISHMENT OF AN ECONOMIC UNION APPEAR AS TWO PARTS OF THE SAME PROCESS SAID RUSSIAN VICE PREMIER ALEXANDER SHOKHIN THE AGREEMENT BY RUSSIA ARMENIA BELARUS KAZAKHSTAN TAJIKISTAN AND UZBEKISTAN TO UNIFY THEIR CREDIT BANKING TAX AND CUSTOMS POLICIES ESSENTIALLY MEANS THAT THE CENTRAL BANK OF RUSSIA WILL DETERMINE THE RULES IN ITS FIVE NEIGHBORING STATES UNTIL NOW FEW REPUBLICS HAVE BEEN WILLING TO COMPROMISE THEIR OWN AUTONOMY TO THAT DEGREE DESPITE THE ECONOMIC DIFFICULTIES CAUSED BY THE COLLAPSE OF TIES BETWEEN THE FORMER SOVIET REPUBLICS BUT RUSSIA'S SUDDEN WITHDRAWAL OF PRE1993 RUBLE NOTES IN JULY AND ITS CUTOFF OF ENERGY SUPPLIES TO CERTAIN REPUBLICS PROVIDED THE IMPETUS FOR THE NEW AGREEMENT BUT AS RUSSIA SETS OUT TO DICTATE MONETARY POLICY FOR OTHER FORMER REPUBLICS ITS OWN POLICIES ARE HARDLY SET IN STONE THE FINANCE MINISTRY HAS PRESENTED THE GOVERNMENT WITH A PACKAGE OF COSTCUTTING AND TAX MEASURES DESIGNED TO RESTRAIN THE BUDGET DEFICIT PARLIAMENT CONTINUES TO PUSH FOR A MUCH LARGER BUDGET FOR THE FOURTH QUARTER IN MY OPINION THE SITUATION IS AS FOLLOWS PEOPLE WHO ARE INCOMPETENT IN MATTERS OF MARKET ECONOMICS ARE TRYING TO USE STALINIST CENTRAL PLANNING METHODS TO PROPOSE SOME REMEDIES SAID FINANCE MINISTER BORIS FYODOROV LAST WEEK ECONOMICS MINISTER OLEG LOBOV A RELATIVE CONSERVATIVE IN THE GOVERNMENT AND A LONGTIME FRIEND OF PRESIDENT BORIS YELTSIN ADDED WEIGHT TO PARLIAMENT'S DEMANDS BY URGING IN LETTERS TO THE PRESIDENT THAT INVESTMENTS IN THE STATE SECTOR BE INCREASED AND THAT THE SWEEPING PROGRAM TO AUCTION OFF STATE INDUSTRY BE RESTRUCTURED THE ECONOMICS MINISTRY PROPOSALS HAVEN'T BEEN PUBLISHED BUT A COPY OF MR LOBOV'S LETTERS AND A DRAFT OF A PRESIDENTIAL DECREE MADE AVAILABLE TO THE WALL STREET JOURNAL INCLUDE CONTINUING SUBSIDIES TO MAIN INDUSTRIES AND BRINGING IN MORE INCOME BY SELLING SHARES IN STATE ENTERPRISES RATHER THAN DISTRIBUTING THEM THROUGH THE VOUCHER AUCTION SYSTEM IN WHICH THE GOVERNMENT RECEIVES NO MONEY THE PRESIDENT APPARENTLY SUPPORTS AT LEAST SOME OF MR LOBOV'S CONCLUSIONS BUT REFORMERS IN THE GOVERNMENT SAID THIS IS JUST ANOTHER VOLLEY IN THE BATTLE WITHIN THE CABINET BETWEEN THOSE WHO FAVOR CONTINUED GOVERNMENT SUBSIDIES FOR INDUSTRY AND A SLOWER TRANSITION TO THE MARKET ECONOMY AND THOSE WHO STAND BY FISCAL AUSTERITY AND CURRENCY STABILIZATION SUCH ATTACKS ON ECONOMIC REFORM HAVE BEEN FENDED OFF BEFORE WITHIN THE CABINET AND PROBABLY WILL BE THIS TIME THEY SAID 9309080141 930908 DRESSER AGREES TO BUY BAROID IN STOCK SWAP DEAL VALUED AT 850 MILLION SIGNALS A CONSOLIDATION IN OILSERVICE INDUSTRY BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL DRESSER INDUSTRIES INC AGREED TO ACQUIRE BAROID CORP IN A STOCK TRANSACTION WITH AN INDICATED VALUE OF 850 MILLION A MOVE THAT ANALYSTS SAID MARKS THE BEGINNING OF LARGESCALE CONSOLIDATION IN THE OILSERVICE INDUSTRY THE ACQUISITION WOULD ALLOW DRESSER TO OFFER A GREATER VARIETY OF SERVICES AND MEET CUSTOMER DEMANDS FOR SIMPLER WAYS TO CONTRACT THE HOST OF EQUIPMENT AND SERVICES NEEDED TO DRILL AND DEVELOP OIL FIELDS PARTICULARLY ABROAD WHILE MOST OF THE INDUSTRY'S CUSTOMERS ARE BIG PUBLICLY TRADED OIL COMPANIES AN INCREASING AMOUNT OF OIL EXPLORATION AND DEVELOPMENT BUSINESS IS COMING FROM GOVERNMENTOWNED OIL COMPANIES SUCH AS MEXICO'S PETROLEOS MEXICANOS AND VENEZUELA'S PETROLEOS DE VENEZUELA SA CUSTOMERS WANT COMPLETE PACKAGES OF SERVICES SAID JEFFREY FREEDMAN AN OILSERVICE ANALYST WITH SMITH BARNEY SHEARSON INC IN NEW YORK THEY DON'T WANT TO SHOP AROUND WITH A BUNCH OF COMPANIES TO GET THE JOB DONE DALLASBASED DRESSER WHICH HAD REVENUE OF 38 BILLION IN THE YEAR ENDED OCT 31 1992 SAID IT AGREED TO ISSUE 04 SHARE OF DRESSER COMMON STOCK FOR EACH OF BAROID'S 944 MILLION SHARES OUTSTANDING DRESSER SAID IT EXPECTS TO COMPLETE THE ACQUISITION BY MIDJANUARY 1994 DRESSER'S STOCK OUTSTANDING WILL INCREASE BY 37 MILLION SHARES TO 174 MILLION IF COMPLETED THE TRANSACTION WOULD BE ONE OF THE LARGEST RECENT COMBINATIONS IN THE OILSERVICE INDUSTRY IN APRIL 1987 BAKER HUGHES INC WAS FORMED FROM TWO OILSERVICE COMPANIES IN A COMBINATION VALUED AT 550 MILLION INVESTORS GREETED THE NEWS WARMLY BAROID SHARES WERE UP 75 CENTS OR 98 TO 8375 IN HEAVY NEW YORK STOCK EXCHANGE TRADING DRESSER STOCK WAS QUOTED AT 2250 OFF 25 CENTS ON THE BIG BOARD THE EARNINGS CONTRIBUTION FROM BAROID WILL MORE THAN OFFSET THE ADDITIONAL SHARES SAYS ARVIND SANGER A KIDDER PEABODY & CO ANALYST IN THE QUARTER ENDED JULY 31 DRESSER HAD NET INCOME OF 348 MILLION OR 26 CENTS A SHARE ON REVENUE OF 106 BILLION IN THE QUARTER ENDED JUNE 30 BAROID HAD A PROFIT OF 71 MILLION OR EIGHT CENTS A SHARE ON REVENUE OF 2071 MILLION ALTHOUGH IT'S ALREADY ONE OF THE WORLD'S BIG FOUR OILSERVICE COMPANIES DRESSER RECEIVES ABOUT 85 OF ITS REVENUE FROM MAKING EQUIPMENT FOR REFINERIES PETROCHEMICALS AND LIQUEFIED NATURALGAS PRODUCTION THE SOCALLED DOWNSTREAM PART OF THE OIL BUSINESS ACQUIRING BAROID WOULD GIVE A THREEFOLD BOOST TO THE COMPANY'S REVENUES FROM UPSTREAM OPERATIONS EXPLORATION AND PRODUCTION A DRESSER SPOKESMAN SAID BAROID BASED IN HOUSTON SPECIALIZES IN THE DIRECTIONAL DRILLING THAT IS BECOMING INCREASINGLY COMMON WORLDWIDE THE TECHNIQUE WHICH INVOLVES DRILLING IN MANY DIRECTIONS ALLOWS EASIER ACCESS TO RESERVOIRS THAT WOULD OTHERWISE BE DIFFICULT OR EXPENSIVE TO TAP BAROID ALSO MAKES SPECIALTY DIAMOND DRILL BITS AS WELL AS THE FLUIDS NEEDED TO LUBRICATE DRILL BITS IN JANUARY BAROID ACQUIRED A COMPANY THAT SPECIALIZES IN SERVICING UNDERWATER OIL ACTIVITIES THE MOVE IS A CRITICAL ONE FOR DRESSER IF IT WANTS TO COMPETE IN THE GLOBAL MARKETPLACE OF ENGINEERED DRILLING SERVICES SAID MR FREEDMAN AT SMITH BARNEY HE SAID THE PURCHASE PLACES DRESSER IN THE SAME RANKS IN THE EXPLORATION AND PRODUCTION SIDE OF THE GLOBAL SERVICE BUSINESS AS HOUSTONBASED BAKER HUGHES HALLIBURTON CO OF DALLAS AND SCHLUMBERGER LTD IN NEW YORK HE ESTIMATED THAT THE FOUR COMPANIES WOULD ACCOUNT FOR 50 OF THE WORLD MARKET FOR OILFIELD SERVICES WITH AN INCREASING AMOUNT OF DRILLING ACTIVITY OCCURING OVERSEAS AND THE EVENTUAL NEED TO SET UP NEW OFFICES IN PLACES SUCH AS THE FORMER SOVIET UNION EFFICIENCY ALSO BECAME A FACTOR IN THE ACQUISITION ANALYSTS SAID THEY NOTED THAT IT WOULD BE MORE EFFICIENT TO SET UP A SINGLE OFFICE THAT COULD OFFER NUMEROUS SERVICES THAN FOR EACH COMPANY TO OPEN SEPARATE OFFICES DRESSER'S STOCK PRICE MUST BE BETWEEN 20 AND 28 A SHARE FOR THE ACQUISITION TO BE COMPLETED UNDER TERMS OF THE AGREEMENT IF THE PRICE FALLS OUT OF THAT RANGE THE STOCK CONVERSION RATE WILL BE ADJUSTED BETWEEN 038 AND 042 DRESSER SHARE BOTH COMPANIES' BOARDS HAVE APPROVED THE MERGER BUT IT STILL NEEDS SHAREHOLDER APPROVAL THE DEAL IS A GOOD ONE FOR BAROID SAID KIDDER PEABODY'S MR SANGER BAROID SHAREHOLDERS WILL GET A PREMIUM OVER THE STOCK'S FRIDAY CLOSING PRICE OF 7625 A SHARE SINCE EACH BAROID SHARE IS VALUED AT ABOUT 9 UNDER DRESSER'S OFFER 9309080139 930908 BANK EARNINGS LENDING ARE BOTH UP FDIC SAYS WASHINGTON BANK PROFIT REMAINED HIGH IN THE SECOND QUARTER AND LENDING PICKED UP THE FEDERAL DEPOSIT INSURANCE CORP REPORTED THE AGENCY SAID THE NATION'S 11198 COMMERCIAL BANKS EARNED 104 BILLION IN THE SECOND QUARTER UP SHARPLY FROM THE YEAREARLIER PERIOD'S 78 BILLION BUT DOWN FROM THE RECORD 109 BILLION REPORTED FOR THIS YEAR'S FIRST QUARTER INCOME FROM SECURITIES SALES AND OTHER ONETIME GAINS FELL FROM THE FIRST QUARTER WHILE NET OPERATING INCOME ROSE THE AGENCY REPORTED THE FIGURES IN ITS QUARTERLY BANKING PROFILE BANKS ARE CLEARLY IN A BETTER POSITION TO MAKE LOANS SAID FDIC CHAIRMAN ANDREW HOVE THE FIGURES SHOW THAT LOANS ARE BEGINNING TO RISE AFTER A LONG PERIOD OF RETRENCHMENT AS BANKS REBUILT CAPITAL AND WORKED OFF BAD LOANS NET LOANS AND LEASES ROSE TO 201 TRILLION FOR THE SECOND QUARTER FROM A FIRSTQUARTER 197 TRILLION REVERSING TWO QUARTERS OF DECLINE COMMERCIAL AND INDUSTRIAL LOANS ROSE FOR THE FIRST TIME SINCE 1990'S FIRST QUARTER BUT A JUMP IN LOANS TO FOREIGNERS ACCOUNTED FOR THE ENTIRE INCREASE EARNINGS OF THE NATION'S 408 SAVINGS BANKS ROSE TO 414 MILLION FOR THE SECOND QUARTER FROM A YEAREARLIER 221 MILLION THE NUMBER OF BANKS ON THE FDIC'S PROBLEM LIST INSTITUTIONS SO WEAK THAT THEY MIGHT FAIL FELL TO 640 FOR THE SECOND QUARTER FROM A FIRSTQUARTER 743 AND A YEAREARLIER 1044 9309080138 930908 CHRYSLER'S NEW COMPACT NEON UNVEILED IN GERMANY FRANKFURT CHRYSLER CORP UNVEILED ITS NEON COMPACT SEDAN AT THE AUTO SHOW HERE SAYING THE CAR PROVES THAT US AUTO MAKERS CAN BUILD A GREAT SMALL CAR CHRYSLER IS TRYING TO PORTRAY THE CAR AS ONE THAT CAN COMPETE WITH THE BEST EUROPEAN AND JAPANESE COMPACTS MOREOVER THE INTRODUCTION OF NEON IS PART OF CHRYSLER'S EFFORT TO DEVELOP A GLOBAL SALES BASE FOR NICHE PRODUCTS IN A BID TO DECREASE RELIANCE ON THE CYCLICAL NORTH AMERICAN MARKET CHRYSLER ALSO INTRODUCED ITS EAGLE VISION SEDAN DUBBED THE CHRYSLER VISION TO THE EUROPEAN AUTOMOTIVE PRESS CHRYSLER IS JUST A BIT PLAYER IN EUROPE WHERE IT EXPECTS TO SELL ONLY ABOUT 65000 VEHICLES THIS YEAR BUT WHILE THE OVERALL MARKET IN EUROPE IS DOWN SHARPLY CHRYSLER SALES ARE UP 366 AND IT PREDICTS ANNUAL EUROPEAN SALES GROWTH AT 20 A YEAR HOPING ITS NEON WILL BE A HIT WITH 20 TO 30YEAROLDS CHRYSLER TRIED TO GIVE THE CAR A YOUTHFUL AIR BY UNVEILING IT IN A LARGE ROOM DESIGNED TO LOOK LIKE AN OVERSIZED PINBALL MACHINE ROBERT A LUTZ CHRYSLER'S PRESIDENT CALLED THE CAR FRIENDLY AND HUGGABLE WITH A POWERFUL 16VALVE ENGINE 9309080137 930908 BUSINESS BRIEF PACIFICARE HEALTH SYSTEMS INC ACCORD IS REACHED TO BUY CALIFORNIA DENTAL HEALTH PACIFICARE HEALTH SYSTEMS INC CYPRESS CALIF AGREED TO BUY CLOSELY HELD CALIFORNIA DENTAL HEALTH PLAN FOR 20 MILLION AS PART OF A STRATEGY TO OFFER DENTAL AND VISION SERVICES TO MORE CLIENTS WHILE THE TWO CONCERNS HAVE OFFERED SOME JOINT SERVICES IN CALIFORNIA FOR SEVERAL YEARS THE ACCORD IS AIMED AT PROVIDING DENTAL AND VISION CARE TO MORE CUSTOMERS IN THE STATE IN THE LONG TERM PACIFICARE ALSO HOPES TO OFFER SUCH SERVICES TO EMPLOYER GROUPS AND MEDICARE BENEFICIARIES IN OTHER STATES PACIFICARE SAID THAT AFTER THE ACQUISITION IS COMPLETED CALIFORNIA DENTAL HEALTH PLAN WILL MAINTAIN INDEPENDENT MARKETING EFFORTS IN CALIFORNIA AND CONTINUE PROVIDING BENEFITS TO 450000 CURRENT CALIFORNIA DENTAL MEMBERS BUT BY JOINING FORCES WE SEE A TREMENDOUS AMOUNT OF OPPORTUNITY IN CALIFORNIA SAID JEFF FOLICK PRESIDENT OF PACIFICARE'S CALIFORNIA MANAGED CARE ORGANIZATION CALIFORNIA DENTAL BASED IN TUSTIN CALIF HAS ANNUAL REVENUE OF 45 MILLION 9309080135 930908 BUSINESS BRIEF ROYAL OAK MINES INC REOPENING OF COLOMAC MINE IS SCHEDULED FOR NEXT YEAR ROYAL OAK MINES INC SAID IT WILL REOPEN ITS COLOMAC GOLD MINE BY THE MIDDLE OF NEXT YEAR AND ANTICIPATES THAT FOR 1995 THE MINE WILL BOOST THE COMPANY'S ANNUAL GOLD PRODUCTION BY MORE THAN 53 ROYAL OAK A MINING CONCERN BASED IN VANCOUVER BRITISH COLUMBIA PAID 10 MILLION CANADIAN DOLLARS US75 MILLION IN STOCK LAST SPRING FOR COLOMAC ITS PREVIOUS OWNER NORTHGATE EXPLORATION LTD OF TORONTO SHUT THE MINE AFTER OPERATING PROBLEMS AND A FALL IN GOLD PRICES COLOMAC IS COSTLY TO MINE BECAUSE OF ITS REMOTENESS AND ITS LOW GRADE OF ORE ROYAL OAK WHICH SAID IT WILL SPEND C66 MILLION TO RESTART THE MINE PROJECTS AN AVERAGE CASH OPERATING COST AT COLOMAC OF US295 PER OUNCE OF GOLD GOLD'S MARKET PRICE CURRENTLY IS ABOUT US350 AN OUNCE THE COMPANY SAID IT EXPECTS THE MINE TO PRODUCE 70000 OUNCES OF GOLD NEXT YEAR AND 160000 OUNCES IN 1995 ROYAL OAK EXPECTS TO PRODUCE 300000 OUNCES OF GOLD THIS YEAR FROM ITS OTHER MINES 9309080134 930908 GPA GROUP'S REGROUPING IS DELAYED BY PAPERWORK A WALL STREET JOURNAL ROUNDUP GPA GROUP PLC'S RESTRUCTURING HAS BEEN DELAYED BY LEGAL PAPERWORK BUT A SPOKESMAN SAID NOTHING SUBSTANTIVE WAS HOLDING BACK THE CLOSING A SPOKESMAN FOR THE IRISH AIRCRAFT LEASING GIANT BLAMED THE DRAWNOUT PROCESS OF COMPLETING THE DEAL ON UNEXPECTED TECHNICALITIES OFFICIALS CLOSE TO THE COMPANY HAD BEEN PREDICTING THAT GPA WOULD SIGN AGREEMENTS WITH ITS BANKS AND GE CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO LAST WEEK HE DECLINED TO PINPOINT WHETHER ANY SPECIFIC ASPECT OF THE DEAL IS CAUSING THE DELAY BUT HE WAS LESS THAN CERTAIN ABOUT WHEN THE PAPERWORK WILL BE COMPLETED SAYING THAT HOPEFULLY IT WILL BE LATER THIS WEEK BUT MAY NOT BE FOR AT LEAST ANOTHER WEEK ONCE THE RESTRUCTURING IS COMPLETE GPA WILL CALL A SHAREHOLDER MEETING TO VOTE ON THE DEAL THAT MEETING IS EXPECTED TO TAKE PLACE AROUND ONE MONTH AFTER THE PAPERWORK HAS BEEN FINISHED SINCE FAILING TO PULL OFF A 1 BILLION INITIAL PUBLIC OFFERING IN JUNE 1992 GPA HAS BEEN STRUGGLING TO RESTRUCTURE ITS ORDER BOOK AND BALANCE SHEET THE DEAL INVOLVES AT LEAST 135 COMMERCIAL BANKS FOUR AIRCRAFT MANUFACTURERS GPA'S CURRENT SHAREHOLDERS AND GE CAPITAL 9309080132 930908 TREASURY PLANS TO SELL 224 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 128 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 224 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2367 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING DEC 16 1993 AND MARCH 17 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794E67 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794J54 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9309080131 930908 INTERNATIONAL BRIEF BRITISH PETROLEUM CO PRODUCTION INCREASES ARE SET FOR NORTH SEA OIL GAS WELLS BRITISH PETROLEUM CO SAID IT EXPECTS TO BOOST OIL AND GAS PRODUCTION IN THE NORTH SEA BY MORE THAN 6 BY 1995 MANAGING DIRECTOR JOHN BROWNE TOLD AN INDUSTRY CONFERENCE IN ABERDEEN SCOTLAND THAT THE UNITED KINGDOM COMPANY PLANS TO INCREASE SPENDING THERE BY 10 OVER THE NEXT THREE YEARS AND THAT THE REGION'S PRODUCTION COULD BE MAINTAINED AT WELL OVER TWO MILLION BARRELS A DAY OF OIL EQUIVALENT INTO THE NEXT CENTURY BROWNE SAID THE PLANNED INCREASE IN PRODUCTION IS MADE POSSIBLE BY CHANGES TO THE PETROLEUMINDUSTRY TAX REGIME ANNOUNCED IN THE UK BUDGET IN MARCH 9309080130 930908 ENTERPRISE REDUCING DEBT IS TOP PRIORITY AT SMALL FIRMS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL WILL ROGERS SAID THAT NO MAN WOMAN OR CHILD IS SAFE AS LONG AS CONGRESS IS IN SESSION' AND WE COULDN'T AGREE MORE SAYS MAURICE HAGEMAN HIS SOLUTION PAY DOWN DEBT MR HAGEMAN PRESIDENT OF HAGEMANDIENER ASSOCIATES A HIGHTSTOWN NJ REALESTATE CONCERN SAYS HIS COMPANY IS PAYING OFF ITS BANK DEBT BECAUSE WE WORRY THAT CONGRESS MAY PASS ANOTHER TAX ACT THAT WILL HURT THE REAL ESTATE BUSINESS AS THE '86 LAW DID BY REDUCING TAX BENEFITS FOR REAL ESTATE THE OFFICIAL SAYS HIS COMPANY WAS SEVERELY HURT BY THAT LEGISLATION AND IS TRYING TO CLEAN UP OUR LOANS SO THEY WON'T BE HANGING OVER OUR HEADS WHEN TIMES IMPROVE HE SAYS HIS FIRM WILL WAIT TO SEE HOW THE CURRENT TAX LAWS PLAY OUT BEFORE CONSIDERING BORROWING FOR ANY PURPOSE THE DEBTSHUNNING ENTREPRENEUR HAS PLENTY OF COMPANY AS BANK LOAN RATES ARE THE LOWEST IN TWO DECADES ONE MIGHT EXPECT TO SEE SMALL BUSINESSES RUSHING OUT TO BORROW BORROW BORROW BUT THE REVERSE SEEMS TO BE TRUE MANY SMALL COMPANIES ARE RUSHING TO PAY OFF DEBT NUMEROUS SMALLBUSINESS OWNERS FEAR THAT THE CURRENT TEPID ECONOMIC RECOVERY WON'T LAST THEN AS PROFITS DECLINE EVEN LOWCOST DEBT WOULD SHACKLE THEM WITH INTEREST PAYMENTS ONEROUS BANKIMPOSED LOAN RESTRICTIONS AND THREATS TO THEIR PERSONAL ASSETS REQUIRED AS COLLATERAL ALL OF WHICH BECOME MORE BURDENSOME IN TOUGH TIMES MANY SMALL COMPANIES OF COURSE HAVE FEWER RESOURCES THAN LARGE CONCERNS TO WEATHER THE EFFECTS OF A DOWNTURN AND ARE THUS PARTICULARLY PRONE TO WORRY BIG COMPANIES HAVE PARED THEIR TOTAL BANK DEBT BY CLOSE TO 10 IN THE PAST TWO YEARS ACCORDING TO THE FEDERAL RESERVE BANK AND NOWADAYS A GROWING NUMBER OF SMALLER FIRMS ARE HOPPING ON THE DEBTREDUCTION BANDWAGON BANK ANALYSTS SAY WE'RE PAYING OFF A 2 MILLION FLOATINGRATE LOAN MADE AT THE PRIME RATE PLUS ONE PERCENTAGE POINT AS FAST AS WE CAN EVEN THOUGH INTEREST RATES HAVE DROPPED SAYS DENNIS LUCAS PRESIDENT OF ETC DATA SERVICES INC NEWBURGH NY WHICH HANDLES PAPERWORK PROCESSING FOR BIG COMPANIES ETC WILL PAY OFF THE FINAL 25 OF THE FIVEYEAR LOAN THIS YEAR HE ADDS MR LUCAS SAYS HE PREFERS TO GENERATE FUNDS NEEDED FOR NEW COMPUTER SYSTEMS AND DELIVERY VEHICLES FROM INTERNAL CASH FLOW RATHER THAN BORROW NO MATTER HOW LOW THE INTEREST RATES DROP I SEE NO REASON TO PUT MY HOME AND OTHER ASSETS I OWN AT RISK WHICH BANKS REQUIRE FOR SMALLBUSINESS LOANS HE SAYS CAUTION IS THE BYWORD BECAUSE MANY SMALL BUSINESSES ARE EMERGING FROM HARD TIMES WHEN PAYING INTEREST ON DEBT WAS AN ALBATROSS HANGING AROUND THEIR NECKS SAY COMPANY OWNERS A UNIT OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS RECENTLY ASKED 257 SMALL BUSINESSES WHAT THEY WOULD DO WITH ANY SIGNIFICANT PROFIT RISE FIRST CHOICE CITED BY 50 OF THE BUSINESS OWNERS PAY DOWN DEBT THESE OWNERS FAR OUTNUMBERED THE 21 WHO WOULD CHOOSE THE SECOND FAVORITE OPTION BOOSTING THEIR OWN PAY ANOTHER 15 WOULD INCREASE RETIREMENTPLAN FUNDS ABOUT 40 OF RESPONDENTS CITED PAYING OFF DEBT AS ONE OF THEIR TOP PRIORITIES TO IMPROVE OPERATING RESULTS THIS YEAR SOME BUSINESSES ARE REDUCING DEBT BECAUSE DEBT SERVICE DURING PREVIOUS TOUGH TIMES PROVED BURDENSOME NEW ERA CUSTOM DESIGN & CABINET WORKS INC A FREDERICK MD CABINET MAKER FOR OFFICE BUILDINGS IS PAYING OFF AN 85000 TWOYEAR LOAN AT 1 1/2 POINTS OVER THE PRIME RATE A PREVIOUS 170000 EQUIPMENT LOAN AT A 10 INTEREST RATE WE HAD FROM 1988 THROUGH 1992 CREATED BIG PROBLEMS FOR US WHEN OUR BUSINESS DROPPED SHARPLY FIVE YEARS AGO EXPLAINS JOHN GAGE PRESIDENT AND OWNER WE LOST MONEY IN 1990 AND 1991 AND HAD TO REDUCE OUR MEDICAL BENEFITS AND ELIMINATE DENTAL COVERAGE MR GAGE SAYS THE FIRM ALSO HAD TO CUT ITS WORK FORCE TO 23 FROM 28 EARLY LAST YEAR IN ORDER TO HELP PAY THE PREVIOUS LOAN HE ADDS THIS YEAR BUSINESS HAS IMPROVED AND PROFITS SHOULD MORE THAN DOUBLE FROM LAST YEAR'S LEVEL MR GAGE INDICATES BUT HE IS HESITANT TO BORROW MORE MONEY EVEN THOUGH NEW ERA MAY SOON BE BUYING A NEW 12 MILLION FACTORY AND OFFICE SITE PREVIOUS BAD TIMES HAVE MADE ME OVERLY CAUTIOUS AND I WANT TO BE IN A POSITION WHERE THE COMPANY CAN RESTORE SOME HEALTH BENEFITS TO EMPLOYEES WITHOUT WORRYING ABOUT DEBT SERVICE HE SAYS THINGS ARE LOOKING UP BUT WE'RE NOT RUSHING TO MAKE A PARTY YET AND DON'T WANT TO AGAIN BE UP TO OUR NECKS IN DEBT LOAN RESTRICTIONS ARE ALSO AN ISSUE WILLIAM SINGLETON PRESIDENT AND COOWNER OF LUMBER KING INC A TWOOUTLET LUMBER AND BUILDING MATERIALS RETAILER BASED IN WHITLEY CITY KY SAYS THAT RESTRICTIONS PUT ON HIS BUSINESS DECISIONS BY A BANK HAVE SOURED HIM ON ADDED BORROWING MR SINGLETON SAYS THE COMPANY IS PAYING OFF 100000 THIS YEAR OF A 700000 LOAN IT MADE SEVERAL YEARS AGO AT A HALF POINT OVER PRIME WE WOULD LIKE TO BE DEBTFREE WITHIN FOUR OR FIVE YEARS HE ADDS THE EXECUTIVE COMPLAINS THAT RESTRICTIONS IN HIS LOAN COVENANTS MAKE IT DIFFICULT FOR LUMBER KING TO BUY TRUCKS OR FORKLIFTS WITHOUT CONSULTING THE BANK FIRST SOMETIMES YOU HAVE TO MOVE FAST TO GET A GOOD DEAL IN PURCHASING VEHICLES OR EQUIPMENT AND BY THE TIME THE BANK GETS BACK TO YOU WITH PERMISSION IT'S TOO LATE HE SAYS ALSO THE BANK HAS REQUIRED MR SINGLETON AND HIS PARTNER DWAYNE KING TO PERSONALLY GUARANTEE ALL LOANS MADE BY THE COMPANY SOMETIMES THE PAPERWORK REQUIRED BY BANKS AND REQUIREMENTS THAT WE WORK WITH THEIR LOCAL ATTORNEYS IN CINCINNATI WHERE THE BANKS ARE BASED INCREASES THE COST OF THE LOAN BY 2 SAYS MR SINGLETON WITH BUSINESS STARTING TO IMPROVE WE WANT TO BE ABLE TO EXPAND TO NEARBY AREAS WHERE OUR PROFIT MARGINS COULD BE HIGHER BECAUSE OF LESS COMPETITION WITHOUT ALWAYS WORRYING ABOUT WHETHER THE BANKS LIKE OUR PLANS TO SOME EXTENT THE DRIVE TO REDUCE DEBT IS APPARENTLY GAINING AT THE EXPENSE OF OTHER PRIORITIES AMONG SMALL COMPANIES SURVEYED BY THE AMERICAN INSTITUTE OF CPAS' PRIVATE COMPANIES PRACTICE SECTION 23 ARE TRYING TO REDUCE INVENTORIES THIS YEAR DOWN FROM 36 LAST YEAR SOME 34 ARE TRIMMING PAYROLLS NOW COMPARED WITH 57 LAST YEAR SURVEY PARTICIPANTS CITED TAXES UNEVEN CASH FLOW AND COST OF EMPLOYEE BENEFITS AS THE THREE BIGGEST OBSTACLES TO BUSINESS SUCCESS FEW NAMED FOREIGN COMPETITION OR LOW EMPLOYEE PRODUCTIVITY ABOUT 85 OF THE SURVEY PARTICIPANTS HAVE ANNUAL REVENUES OF LESS THAN 5 MILLION VOLUME RANGES BETWEEN 5 MILLION AND 25 MILLION AT 13 OF THE COMPANIES AND EXCEEDS 25 MILLION AT A BIT MORE THAN 1 OF THE CONCERNS 9309080129 930908 INTERNATIONAL BRIEF SKANSKA AB DIVESTITURE IS NEGOTIATED WITH PENSIONFUND GROUP SWEDEN'S SKANSKA AB SAID IT REACHED AN AGREEMENT TO DIVEST ITSELF OF CERTAIN PROPERTY HOLDINGS AS PART OF AN EFFORT TO REDUCE DEBT THE TRANSACTION BETWEEN SKANSKA A MAJOR NORDIC CONSTRUCTION AND PROPERTYMANAGEMENT GROUP AND THE SWEDISH APFONDERNA IS VALUED AT 25 BILLION KRONOR 3128 MILLION APFONDERNA IS THE GENERAL SWEDISH PENSIONFUND GROUP UNDER THE AGREEMENT APFONDERNA WILL RECEIVE 20 SKANSKA PROPERTIES IN THE STOCKHOLM REGION AND SKANSKA WILL RECEIVE A NUMBER OF INDUSTRIAL AND OFFICE PROPERTIES AND SOME HOUSING BUILDINGS IN THE SWEDISH CITIES OF STOCKHOLM AND MALMO SKANSKA WILL REALIZE A CAPITAL GAIN OF ONE BILLION KRONOR WHICH THE COMPANY SAID WILL BE USED TO REDUCE DEBT SKANSKA WARNED LAST MONTH THAT PROPERTY WRITEDOWNS WOULD BURDEN THIS YEAR'S EARNINGS BUT THAT THEY WOULD BE PARTLY OFFSET BY GAINS FROM DIVESTMENTS 9309080127 930908 WHO'S NEWS AETNA LIFE & CASUALTY CO AETNA LIFE & CASUALTY CO HARTFORD CONN THIS INSURANCE AND FINANCIAL SERVICES CONCERN NAMED R BRIAN WEBB MANAGING DIRECTOR IN CHARGE OF THE RESEARCH GROUP AT ITS AETNA REALTY INVESTORS INC UNIT A NEW POSITION DR WEBB 37 YEARS OLD HAD BEEN A PROFESSOR OF FINANCE AT INDIANA UNIVERSITY AETNA REALTY MANAGES 36 BILLION IN REAL ESTATE ASSETS 9309080126 930908 INTERNATIONAL BRIEF KONINKLIJKE AHOLD NV SECONDQUARTER PROFIT ROSE 11 ON SALES INCREASE OF 30 DUTCH FOODS RETAILER KONINKLIJKE AHOLD NV POSTED DOUBLEDIGIT PROFIT GROWTH BOTH IN THE SECOND QUARTER AND THE FIRST HALF OF 1993 IT ALSO REITERATED FULLYEAR PROFIT WILL BE UP FROM LAST YEAR AND BOOSTED ITS INTERIM DIVIDEND 13 TO 34 DUTCH CENTS A SHARE FROM THE YEAREARLIER 30 CENTS AHOLD ONE OF THE WORLD'S LARGEST FOOD RETAILERS SAID PROFIT ROSE 11 TO 762 MILLION GUILDERS 418 MILLION IN THE SECOND QUARTER OF 1993 FROM 684 MILLION GUILDERS A YEAR EARLIER SALES ROSE 30 TO 635 BILLION GUILDERS FROM 489 BILLION GUILDERS A YEAR EARLIER AHOLD SAID PROFIT IN THE FIRST HALF ROSE TO 1724 MILLION GUILDERS FROM 1535 MILLION GUILDERS SALES ROSE TO 143 BILLION GUILDERS FROM 1139 BILLION 9309080124 930908 INTERNATIONAL BRIEF HILLSDOWN HOLDINGS PLC PRETAX PROFIT SLIPPED 17 FOR THE FIRST HALF OF 1993 HILLSDOWN HOLDINGS PLC SAID THAT ITS PRETAX PROFIT SLIPPED 17 IN THE FIRST HALF OF 1993 CITING HIGH RAW MATERIALS PRICES AND TOUGH TRADING CONDITIONS ACROSS THE FOOD SECTOR THE PRETAX PROFIT SLIP TO 623 MILLION 952 MILLION OR 51 PENCE A SHARE WAS A SHADE BELOW MARKET FORECASTS YEAREARLIER PRETAX PROFIT WAS 748 MILLION OR 64 PENCE SALES FOR THE LATEST HALF WERE UP 64 TO 227 BILLION FROM 214 BILLION A YEAR EARLIER SIR JOHN NOTT CHAIRMAN OF THE FOOD FURNITURE AND PROPERTY GROUP SAID THE PRETAX COMPARISON WAS HURT BY EXCEPTIONAL ITEMS WHICH GENERATED COSTS OF 900000 IN THE LATEST HALF AFTER A YEAREARLIER GAIN OF 62 MILLION CHIEF EXECUTIVE DAVID NEWTON SAID THE TWO MAIN OPERATIONAL FACTORS BEHIND THE PRETAX DROP WERE WEAK CONSUMER DEMAND IN THE RECESSION AND COST PRESSURES CREATED BY STERLING'S DROP FOLLOWING ITS WITHDRAWAL FROM THE EUROPEAN EXCHANGE RATE MECHANISM IN THE AUTUMN OF 1992 9309080121 930908 CLEVELANDCLIFFS MINERS END FIVEWEEK STRIKE CLEVELAND MINERS AT CLEVELANDCLIFFS INC'S IRON ORE MINING PARTNERSHIPS ENDED THEIR FIVEWEEK STRIKE YESTERDAY AFTER THE COMPANY SAID IT REACHED TENTATIVE CONTRACT AGREEMENTS WITH THE UNITED STEELWORKERS OF AMERICA UNION MEMBERS AT THREE MINES THE EMPIRE AND TILDEN MINES IN MICHIGAN AND THE HIBBING TACONITE MINE IN MINNESOTA HAVE BEEN ON STRIKE SINCE JULY 31 WHEN THE PREVIOUS CONTRACTS EXPIRED TERMS OF THE PROPOSED SIXYEAR CONTRACTS WEREN'T DISCLOSED THE CONTRACTS ARE SUBJECT TO RATIFICATION BY THE UNION MEMBERS A UNION SPOKESMAN SAID A RATIFICATION VOTE PROBABLY WON'T BE SET FOR THREE TO FOUR WEEKS 9309080119 930908 MOST YIELDS ON CDS FELL SURVEY INDICATES NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE GENERALLY LOWER IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 272 FROM 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS FELL TO 454 FROM 465 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 302 FROM 312 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD INCHED UP TO 456 FROM 449 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 OR MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 275 FROM 278 ON FIVEYEAR JUMBOS THE AVERAGE DROPPED TO 457 FROM 470 ACCORDING TO BANXQUOTE