MINNEAPOLIS ANGEION CORP NAMED WHITNEY MCFARLIN CHAIRMAN AND CHIEF EXECUTIVE MR MCFARLIN IS THE FORMER PRESIDENT CHIEF EXECUTIVE AND CHAIRMAN OF CLARUS MEDICAL SYSTEMS INC MR MCFARLIN 53 YEARS OLD SUCCEEDS WENDELL KING ALSO 53 IN THE POSTS AT THE MEDICALDEVICE MAKER ANGEION WHICH HAS SPENT SEVERAL YEARS DEVELOPING CARDIOVASCULAR DEVICES ANNOUNCED IN MAY THAT IT WAS SEEKING A NEW PRESIDENT TO FACILITATE ITS MOVE FROM A DEVELOPMENTSTAGE CONCERN TO AN OPERATIONSORIENTED COMPANY THE PROCESS AIMED AT FINDING A NO 2 OFFICIAL WHO COULD BE GROOMED TO EVENTUALLY TAKE THE TOP JOBS WAS INSTIGATED AT MY REQUEST SAID MR KING IN AN INTERVIEW IT WAS MY INTENT TO PHASE OUT AT ANGEION IN FAVOR OF SOME OTHER PROJECTS BUT WITH MR MCFARLIN'S AVAILABILITY WE GOT SUCH A PROVEN ENTITY THAT THE GROOMING PERIOD WASN'T REQUIRED HE WAS MY BOSS AT MEDTRONIC INC FOR FIVE YEARS NOTED MR KING A SPOKESWOMAN SAID THE PRESIDENT'S POSITION IS NOW UNLIKELY TO BE FILLED A MEMBER OF ANGEION'S BOARD SINCE DECEMBER MR MCFARLIN WAS AN OFFICIAL WITH MEDTRONIC FROM 1977 TO 1985 AND THEN SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF EVEREST & JENNINGS INTERNATIONAL LTD UNTIL 1987 THE YEAR HE FOUNDED CLARUS A CLOSELY HELD DEVELOPER OF ENDOSCOPIC SURGICAL KITS MR KING WILL REMAIN A DIRECTOR AND SERVE AS AN ADVISER TO THE COMPANY HE JOINED ANGEION AS PRESIDENT IN 1988 9309080117 930908 INTERNATIONAL FISONS RISE IN PROFIT HELD TO 47 BY LOSS ON INSTRUMENTS LINE LONDON BRITISH HEALTHCARE CONCERN FISONS PLC REPORTED A LACKLUSTER 47 RISE IN FIRSTHALF PRETAX PROFIT AS A BUDDING RECOVERY AT THE FLAGSHIP DRUG DIVISION WAS LARGELY OFFSET BY RED INK FROM RECESSIONBATTERED SCIENTIFIC INSTRUMENT OPERATIONS MANY ANALYSTS EXPECT FISON'S FULLYEAR PRETAX PROFIT TO TUMBLE ABOUT 15 WHICH WOULD BE THE FOURTH CONSECUTIVE EARNINGS DECLINE FISONS STOCK CLIMBED 35 PENCE 53 CENTS TO 1805 PENCE IN LATE LONDON TRADING ON TUESDAY THE BRITISH CONCERN SAID PRETAX PROFIT ROSE TO 423 MILLION 646 MILLION IN THIS YEAR'S FIRST SIX MONTHS FROM 404 MILLION A YEAR EARLIER SALES INCREASED 138 DURING THE PERIOD TO 6514 MILLION FROM 5723 MILLION THE PREVIOUS YEAR THE RATE OF SALES GROWTH BALLOONED BECAUSE OF LAST YEAR'S DEVALUATION OF THE BRITISH POUND HOWEVER BECAUSE FISONS HEDGES A MAJOR PART OF ITS CURRENCY EXPOSURE IMPACT OF THE WEAKER POUND ON PROFITS WON'T BEGIN TO APPEAR UNTIL NEXT YEAR ANALYSTS SAID EXCLUDING CURRENCY FACTORS THE SALES GAIN WAS ACTUALLY A MORE MODEST 6 THE COMPANY SAID THE PHARMACEUTICAL DIVISION'S PROFIT SURGE WAS FUELED BY STRONG GAINS FOR ANTIASTHMA MEDICINES IN THE US THE UK AND FRANCE OPERATING PROFIT AT THE SCIENTIFIC EQUIPMENT DIVISION SKIDDED 23 TO 132 MILLION ON SALES OF 3606 MILLION UP 18 FROM THE PREVIOUS YEAR EXCLUDING CURRENCY FACTORS THE DIVISION'S SALES INCHED UP 2 9309080116 930908 INTERNATIONAL CHINA URGED TO LET ECONOMY BE GUIDED BY LAW BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING IF CHINA IS TO SUSTAIN RAPID ECONOMIC GROWTH NOW THE WORLD'S FASTEST ITS AUTHORITARIAN GOVERNMENT MUST SACRIFICE SOME KEY POWERS ANALYSTS SAY THE TRADEOFF IS LIKELY TO RESULT FROM A STRUCTURAL CHANGE MANY ANALYSTS AND CHINESE OFFICIALS CONSIDER IMPERATIVE CREATION OF AN IMPARTIAL ADMINISTRATIVE AND REGULATORY FRAMEWORK FOR OVERSEEING THE ECONOMY WITHOUT CLEAR RULES CHINA'S ALREADY STRAINED ECONOMY RUNS A RISK OF SPINNING OUT OF CONTROL OR STALLING PROPELLED BY A FLOOD OF NEW MONEY CURRENCY IN CIRCULATION EXPANDED BY HALF IN THE FIRST SIX MONTHS THE ECONOMY RACED AT A 139 ANNUALIZED CLIP THROUGH JUNE YEARONYEAR INFLATION IN SOME CITIES HAS SOARED ABOVE 20 AN ALARMED DEPUTY PREMIER ZHU RONGJI IN JUNE TOOK OVER THE COUNTRY'S CENTRAL BANK AND ISSUED EDICTS TO SLOW THE ECONOMY AND REDIRECT CAPITAL AWAY FROM FRENZIED PROPERTY AND STOCK MARKETS AND INTO INFRASTRUCTURE FARMING AND OTHER KEY SECTORS SOME MEASURES INCLUDING REINFORCING PRICE CONTROLS APPEAR TO INCREASE THE CENTRAL GOVERNMENT'S ECONOMIC ROLE BUT ECONOMISTS SAY BEIJING MUST NOW REDUCE THE DEGREE TO WHICH THE COMMUNIST PARTY AND GOVERNMENT BUREAUCRATS CAN AND DO GUIDE THE ECONOMY BY FIAT CHINA NEEDS TO REPLACE THE RULE OF MAN WITH THE RULE OF LAW SAYS ONE FOREIGN ECONOMIST IT MUST OPEN ITS LEGISLATIVE PROCESS AND CLAMP DOWN ON THE POWERS OF LOCAL COMMUNIST PARTY CADRES WHO ARE OFTEN ACCUSED OF CORRUPTION CHINA ALSO MUST OVERHAUL ITS FINANCIAL SYSTEM TO FOSTER MARKETDETERMINED INTEREST RATES PROFITMINDED COMMERCIAL BANKS AND AN AUTONOMOUS CENTRAL BANK THE ECONOMISTS SAY THEY WILL HAVE TO GIVE UP SOME FORMS OF POWER SAYS JONATHAN HOPE A CHINA SPECIALIST AT JAMES CAPEL & CO A LONDON SECURITIES HOUSE OFFICIALS IN BEIJING SAY THEY ARE AWARE OF THE NEED TO REVAMP SOME INSTITUTIONS BUT THEY DOUBT THAT WILL DIMINISH THE GOVERNMENT'S STATURE OR REORGANIZE THE PARTYDOMINATED POLITICAL STRUCTURE VICE PREMIER QIAN QICHEN SAID RECENTLY THAT THOUGH HE FORESAW NO CHANGE IN CHINA'S POLITICAL STRUCTURE HE BELIEVED A MORE DEMOCRATIC AND OPEN FORM OF ECONOMIC DECISIONMAKING WAS NECESSARY WE ARE NOW IMPLEMENTING A POLICY OF REFORM AND OPENING TO THE OUTSIDE WORLD ON A LARGE SCALE MR QIAN SAID IT IS DIFFICULT FOR US TO DO THIS WITHOUT A TRANSPARENT DECISIONMAKING PROCESS YET WHILE CHINA'S COMMUNIST GOVERNMENT IS WILLING NOW TO TOLERATE SOME DEMOCRACY YOU CAN'T REALLY THINK OF THIS AS RELINQUISHING CONTROL SAYS RICHARD MARGOLIS A MANAGING DIRECTOR WHO FOLLOWS CHINA FOR SMITH NEW COURT FAR EAST LTD A HONG KONG SECURITIES FIRM THIS IS THE ONLY WAY TO REESTABLISH CONTROL HE AND OTHER ECONOMISTS ARGUE THAT ARBITRARY INTERFERENCE BY COMMUNIST APPARATCHIKS HOPING TO RIDE CHINA'S ECONOMIC REFORMS TO WEALTH WERE TURNING PARAMOUNT LEADER DENG XIAOPING'S 15YEAROLD FREE MARKET EXPERIMENT INTO A FREEFORALL UNAUTHORIZED LENDING CORRUPTION AND SMUGGLING PLAGUE CHINA BY MAKING ECONOMIC DECISIONS OPENLY THE GOVERNMENT WILL REDUCE THE OPPORTUNITIES FOR CORRUPTION NEW LAWS ALSO MAY ENTICE FOREIGN INVESTORS WHOSE CAPITAL HAS BEEN TURBOCHARGING THE ECONOMY WE'RE BEGINNING TO SEE THE LEGAL SYSTEM TURN AROUND IN A WAY THAT WILL BENEFIT FOREIGN INVESTORS SAYS JAMES CAPEL'S MR HOPE NEW LEGAL STRUCTURES ALSO WILL PRODUCE FORMAL FISCAL AND TAX REGIMES BY LAYING DOWN CLEAR AND OPEN GUIDELINES THE CENTRAL GOVERNMENT COULD REASSERT CONTROL OVER RENEGADE LOCAL OFFICIALS WITH INTEREST RATES SET BY CENTRAL PLANNERS AND STATEOWNED BANKS BLISSFULLY UNCONCERNED ABOUT LOSING MONEY CAPITAL WAS FLOODING UNCHECKED AND UNGUIDED BY MARKET FORCES INTO THE ECONOMY TO CORRECT THAT ANALYSTS AND SOME ECONOMISTS SAY THE PEOPLE'S BANK OF CHINA SOON WILL HAVE TO BE RESTRUCTURED TO MAKE IT MORE LIKE CENTRAL BANKS IN INDUSTRIALIZED ECONOMIES NOW IT HAS BRANCHES AND COMPETES AS A LENDER WITH OTHER BANKS IT REGULATES ITS BRANCHES AND OPERATING UNITS WILL BE SPUN OFF AND THE HEADQUARTERS WILL FOCUS ON SETTING POLICY AND DEVELOPING CHINA'S MONETARY SYSTEM 9309080115 930908 TECHNOLOGY BRIEF REGENERON PHARMACEUTICALS INC LOU GEHRIG'S DISEASE IS EASED IN TRIAL USAGE OF NEW DRUG REGENERON PHARMACEUTICALS INC OF TARRYTOWN NY SAID 12 PATIENTS WITH LOU GEHRIG'S DISEASE WHO RECEIVED THE HIGHEST DOSE TESTED IN A TRIAL OF ITS CNTF DRUG HAD A 72 SLOWER RATE OF DETERIORATION IN MUSCLE STRENGTH THAN THE 14 PATIENTS WHO RECEIVED A PLACEBO THE HIGH DOSE 30 MICROGRAMS OF CNTF OR CILIARY NEUROTROPHIC FACTOR WAS ADMINISTERED AS PART OF A PHASE II TRIAL OF THE DRUG THAT PRIMARILY TESTED THE EFFECTS OF HIGH DOSAGE LEVELS THE COMPANY SAID REGENERON ADDED THAT THE TEST POOL WASN'T LARGE ENOUGH TO DETERMINE THE EFFICACY OF THE DRUG TO A STATISTICALLY SIGNIFICANT DEGREE OF CERTAINTY LOU GEHRIG'S DISEASE ALSO KNOWN AS AMYOTROPHIC LATERAL SCLEROSIS IS A DEGENERATIVE DISEASE CHARACTERIZED BY THE DEATH OF MOTOR NEURONS AND EVENTUALLY IS FATAL REGENERON'S CNTF IS A PROTEIN THAT HAS SHOWN IN ANIMAL EXPERIMENTS AN ABILITY TO PROMOTE THE SURVIVAL OF NEURONS 9309080114 930908 FINANCING BUSINESS DIAL CORP DIAL CORP PHOENIX SAID IT IS REFINANCING ABOUT 100 MILLION OF ITS FIXEDRATE LONGTERM DEBT AND IT WILL CONTINUE TO CONSIDER FURTHER REFINANCING IF MARKET CONDITIONS WARRANT JOHN TEETS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CONSUMER PRODUCTS AND SERVICES CONCERN SAID THE DECISION REFLECTED THE COMPANY'S STRONG FINANCIAL POSITION IN LIGHT OF RECENT DIVESTITURES THE COMPANY SAID IT PLANS TO TAKE A ONETIME CHARGE OF ROUGHLY 9 MILLION TO REPLACE DEBT HAVING AN AVERAGE INTEREST RATE OF SLIGHTLY OVER 10 9309080113 930908 TECHNOLOGY & HEALTH IBM REDUCES MINICOMPUTER SALES OUTLOOK BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP OFFERED A GLOOMIER NEW OUTLOOK FOR ITS BIG MINICOMPUTER BUSINESS PREDICTING THAT ITS 1993 REVENUE WILL BE ROUGHLY FLAT WITH ITS 1992 RESULTS IN FEBRUARY IBM HAD PREDICTED ITS MINICOMPUTER SALES WOULD GROW 3 TO 4 THIS YEAR ARRESTING A SUDDEN DECLINE LAST YEAR THAT STIRRED FEARS ABOUT IBM'S CHANCES FOR A TURNAROUND BUT IN AN INTERVIEW YESTERDAY JOHN THOMPSON IBM'S TOP MINICOMPUTER EXECUTIVE SAID A SEVERE SLOWDOWN IN EUROPEAN MARKETS HAS HURT IBM'S OUTLOOK HE SAID THE SLUMP IS PARTICULARLY PAINFUL FOR IBM BECAUSE IT GETS ABOUT HALF OF ITS MINICOMPUTER SALES FROM EUROPE A BIGGER PERCENTAGE THAN ITS ARCHRIVALS DIGITAL EQUIPMENT CORP AND HEWLETTPACKARD CO INTRODUCED IN 1988 IBM'S AS/400 MINICOMPUTER WAS FOR YEARS ONE OF IBM'S HOTTEST PRODUCTS POSTING DOUBLEDIGIT SALES GAINS BUT ITS PRICES HAVE BEEN PLUNGING SO FAST THAT IBM CAN'T SUSTAIN THOSE GAINS THE PRECISE PREDICAMENT THAT HAS CRUNCHED THE PERSONALCOMPUTER INDUSTRY THE AS/400 AND PRODUCTS THAT GO WITH IT ARE A 135 BILLION BUSINESS FOR IBM OR ABOUT 20 OF ITS TOTAL SALES MINICOMPUTERS ARE MULTIUSER MACHINES THAT GENERALLY COST BETWEEN 15000 AND 1 MILLION MR THOMPSON SAID MINICOMPUTERS CONTINUE TO BE PROFITABLE FOR IBM HE SAID IBM'S APPLICATION BUSINESS SYSTEMS DIVISION WHICH INCLUDES MINICOMPUTER HARDWARE AND OPERATING SOFTWARE IS POSTING A RETURN ON ASSETS OF ABOUT 17 MR THOMPSON'S COMMENTS CAME AS IBM UNVEILED THREE NEW AS/400 MODELS YESTERDAY DESIGNED TO BE A COMMON STORAGE DEVICE FOR A GROUP OF WORKERS IBM SAID THE NEW MACHINES OFFER THREE TO FIVE TIMES THE PERFORMANCE PER DOLLAR OF EARLIER MODELS SEPARATELY IBM SAID IT EXPECTS THAT IN THE COMING MONTH IT WILL BRING OUT THE FIRST COMPUTER TO USE ITS CLOSELY WATCHED NEW POWERPC MICROPROCESSOR CHIP THE POWERPC IS A JOINT VENTURE OF IBM APPLE COMPUTER INC AND MOTOROLA INC TO INVADE THE LUCRATIVE MICROPROCESSOR MARKET CONTROLLED BY INTEL CORP IN AN INTERVIEW THAT OFFERED NEW DETAILS ABOUT THE CHIP'S SCHEDULE IBM EXECUTIVE PHIL HESTER SAID THE COMPANY PLANS TO START USING THE POWERPC'S FIRST MODEL THE 601 IN ITS WORKSTATIONS EARLY NEXT YEAR IBM WILL START USING THE CHIP IN PCS HE SAID MR HESTER SAID MORE POWERFUL VERSIONS OF THE CHIP WILL BE DESIGNED EARLY NEXT YEAR AND SHOULD START APPEARING IN COMPUTERS IN LATE 1994 OR EARLY 1995 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IBM SHARES FELL 25 CENTS TO 4550 9309080112 930908 WMX PULLS ITS APPLICATION FOR INCINERATOR TRASH HAULER FEELS EFFECTS AS FIRMS CUT AMOUNTS OF WASTE THEY GENERATE BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC GAVE UP TRYING TO BUILD A HAZARDOUS WASTE INCINERATOR IN CALIFORNIA BECAUSE OF RAPIDLY SHRINKING DEMAND FOR SUCH PLANTS THE WITHDRAWAL OF A PERMIT APPLICATION BY THE NATION'S LARGEST TRASH HAULER AND HAZARDOUS WASTE CONCERN ILLUSTRATES THE SHARP DOWNTURN IN A ONCEBOOMING INDUSTRY UNTIL RECENTLY REGULATORS AND BUSINESSES WORRIED THAT THERE WOULDN'T BE ADEQUATE INCINERATION OR DUMP CAPACITY TO HANDLE HAZARDOUS WASTE HOPING TO WIN VALUABLE PERMITS COMPANIES SUCH AS WMX TECHNOLOGIES FORMERLY WASTE MANAGEMENT INC BASED IN OAK BROOK ILL ENDURED COSTLY AND BRUISING BATTLES AGAINST LOCAL RESIDENTS AND NATIONAL ENVIRONMENTAL GROUPS BUT BECAUSE OF AGGRESSIVE REDUCTIONS BY MAJOR CHEMICAL AND MANUFACTURING COMPANIES IN THE AMOUNTS OF WASTE THEY GENERATE DEMAND FOR INCINERATION HAS FALLEN WHAT'S MORE GOVERNMENT AND PRIVATESECTOR SPENDING TO CLEAN UP OLD INDUSTRIAL DUMP SITES HAS FAILED TO MATCH LOFTY EXPECTATIONS AND AFTER YEARS OF ASKING STATES TO PREPARE FOR A DISPOSAL SHORTAGE THE ENVIRONMENTAL PROTECTION AGENCY ACKNOWLEDGED THIS SUMMER THAT ADEQUATE CAPACITY EXISTS NATIONALLY WMX TECHNOLOGIES' HAZARDOUS WASTE UNIT CHEMICAL WASTE MANAGEMENT INC SAID IT WITHDREW ITS APPLICATION IN KINGS COUNTY CALIF TO BUILD AN INCINERATOR ON A SITE WHERE THE COMPANY ALREADY OPERATES ONE OF THE NATION'S LARGEST HAZARDOUS WASTE DUMPS THAT MOVE FOLLOWED ANOTHER WASTE INCINERATION APPLICATION WITHDRAWN EARLIER THIS YEAR IN UPSTATE NEW YORK THE AMOUNT OF CALIFORNIA HAZARDOUS WASTE THAT REQUIRES INCINERATION FELL AN ESTIMATED 30 FROM 1987 TO 1990 AND CONTINUES TO DECLINE BY ABOUT 10 EACH YEAR CHEMICAL WASTE SAID DUPONT CO LAST MONTH CANCELED ITS OWN 100 MILLION INCINERATOR AND VON ROLL LTD OF SWITZERLAND WHICH FINISHED BUILDING ITS CONTROVERSIAL EAST LIVERPOOL OHIO INCINERATOR BEFORE THE FALLING DEMAND WAS ENTIRELY EVIDENT IS WORKING TO FIND CUSTOMERS AFTER DUPONT WMX TECHNOLOGIES AND BASF CORP CANCELED COMMITMENTS TO FEED WASTE TO THE PLANT REFLECTING THE INDUSTRY'S WOES CHEMICAL WASTE STOCK WAS QUOTED AT 9 DOWN 25 CENTS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE LESS THAN HALF THE 22 HIGH OF THE LAST 12 MONTHS CHEMICAL WASTE SAID IN JULY THAT IT IS CONSIDERING A CHARGE TO WRITE DOWN THE VALUE OF ITS ASSETS THAT REVIEW IS EXPECTED TO BE COMPLETED BY SEPT 30 A SPOKESMAN WOULDN'T ELABORATE 9309080111 930908 INTERNATIONAL APATHY APPEARS AS LEADING CANDIDATE IN ELECTION POLLS OF EASTERN GERMANS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL TREBBIN GERMANY WHEN GEORG JOHN A TEACHER WHO RECENTLY MOVED TO THIS EASTERN GERMAN TOWN WENT TO HIS FIRST MEETING OF THE LOCAL SOCIAL DEMOCRATIC PARTY HE WAS PREPARED TO DONATE A LITTLE TIME FOR PUBLIC SERVICE HE DIDN'T EXPECT TO BE ASKED TO BE MAYOR BUT WHEN THE MAYORALTY CAME UP DURING THE PARTY'S MEETING THIS WEEK MAGDALENA BOEHME AN SPD MEMBER OF THE TOWN COUNCIL TURNED TO MR JOHN WHOM SHE HAD NEVER MET BEFORE WHEN I HEARD YOU WERE A TEACHER I THOUGHT MAYBE YOU'RE OUR NEXT MAYOR SHE SAID IMPLORINGLY YOU DON'T NEED TO HAVE POLITICAL EXPERIENCE YOU JUST NEED TO BE AN UNDERSTANDING PERSON THINK ABOUT IT THE UNUSUAL APPEAL CAME BECAUSE IN TREBBIN AS IN MANY OTHER EASTERN GERMAN TOWNS ELECTIVE POLITICS IS ELICITING A BIG COLLECTIVE YAWN INDEED A GENERAL AVERSION TO PARTIES ELECTIONS AND HOLDING OFFICE APPEARS TO BE THE RESPONSE OF EASTERN GERMANS TO THREE YEARS OF POSTUNIFICATION ECONOMIC AND POLITICAL TURMOIL IN THIS TOWN OF 4300 PEOPLE 20 MILES FROM BERLIN NEITHER THE SPD WHICH IS THE LARGEST PARTY THE CENTERRIGHT CHRISTIAN DEMOCRATS CDU OR THE LOCAL ASSOCIATION OF INDEPENDENT VOTERS CAN FIND A CANDIDATE THE INCUMBENT PETER BLOHM A MEMBER OF THE ASSOCIATION OF INDEPENDENTS CANNOT RUN AGAIN BECAUSE HE IS THE TOWN'S PAID BUILDING DIRECTOR AND A NEW ELECTORAL LAW PROHIBITS HIM FROM HOLDING ELECTIVE OFFICE AS WELL THE FLABBERGASTED MR JOHN DECLINED TO PUT HIMSELF FORWARD FOR MAYOR BUT AGREED TO RUN FOR THE LESS TIMECONSUMING CITY COUNCIL TREBBIN'S CANDIDATE DROUGHT IS TYPICAL THROUGHOUT BRANDENBURG ONE OF THE FIVE STATES CREATED OUT OF THE FORMER GERMAN DEMOCRATIC REPUBLIC WITH COMMUNAL ELECTIONS IN THE STATE SET FOR DEC 5 ALL MAJOR PARTIES ARE FINDING THAT APATHY IS THE STRONGEST POLITICAL MOVEMENT IN THE REGION THE ELECTIONS WILL BE THE FIRST IN EASTERN GERMANY SINCE THE STATE AND LOCAL CONTESTS HELD SHORTLY AFTER THE FUSION OF THE GERMANIES IN OCTOBER 1990 THERE'S A DISAPPOINTMENT WITH WHAT'S HAPPENED IN THE LAST TWO OR THREE YEARS AND THERE ARE DOUBTS OVER WHAT LIES AHEAD SAYS MARTIN GORHOLT EXECUTIVE SECRETARY OF BRANDENBURG'S SPD FINANCIAL CONCERNS PLAY A ROLE AS WELL HE SAYS PEOPLE FEEL THEY HAVE TO TAKE CARE OF THEIR OWN WELLBEING BEFORE THEY START WORRYING ABOUT POLITICS YET EVEN WHEN THEIR WELLBEING MIGHT BE IMPROVED FEW WANT TO RUN IN TREBBIN FOR EXAMPLE THE MAYOR'S JOB IS OFFICIALLY UNPAID AS ARE MOST LOCAL ELECTIVE POSTS ALTHOUGH IT CARRIES 1200 A MONTH IN TAXFREE ALLOWANCES A SIZABLE AMOUNT IN THE HARDPRESSED EAST YOU REALLY HAVE TO WONDER WHY NO ONE IS LINING UP FOR THAT SAYS KLAUS HILPERT TREBBIN'S SPD CHAIRMAN MR HILPERT ADDS THAT HE ISN'T SURE HE HAS THE ENERGY FOR THE JOB IN ALL ROUGHLY 19000 POSTS WILL BE CONTESTED IN A STATE OF 25 MILLION MANY OF THOSE OFFICES WILL BE IN BRANDENBURG'S 1100 TOWNS WITH POPULATIONS OF UNDER 500 WITH CANDIDATE SLATES CLOSING NEXT MONTH THE TWO MAJOR PARTIES ARE UNLIKELY TO FIND INDIVIDUALS FOR MORE THAN HALF OF THE JOBS AVAILABLE AND THEY WILL DO THAT WELL ONLY WITH THE HELP OF A LARGE NUMBER OF CANDIDATES WHO ARE NOT PARTY MEMBERS BUT WHO ARE AGREEING TO RUN ON THE PARTY SLATES IN TREBBIN FOR EXAMPLE NINE OF 15 PEOPLE RUNNING FOR THE TOWN COUNCIL ON THE SOCIAL DEMOCRATS' TICKET ARE NOT SPD MEMBERS THE REST WERE EITHER APPROACHED BY PARTY MEMBERS AND ASKED TO RUN OR RESPONDED TO ADVERTISEMENTS THE PARTY HAS PUT IN LOCAL NEWSPAPERS PLEADING FOR CANDIDATES EVEN THE NONMEMBERS WHO AGREE TO RUN FOR THE SPD OR FOR THE CDU SHOW AN AVERSION TO WESTERNSTYLE POLITICS MOST PEOPLE REFUSE TO JOIN THE ORGANIZATIONS EVEN THOUGH THEY AGREE MORE OR LESS TO TOE THE PARTY LINE PARTY MEMBERSHIP LEVELS IN EASTERN GERMANY REMAIN ONE HALF OR LESS THAN THOSE IN THE WEST AND ARE AT BEST HOLDING STEADY THE LACK OF POLITICAL INTEREST IN THE COMMUNAL ELECTIONS HAS OCCASIONED A FAIR BIT OF HANDWRINGING OVER DEMOCRACY'S PROSPECTS IN THE REGION BUT WHAT MAY BE MOST REMARKABLE ABOUT THE TREND IS THAT ACCORDING TO MANFRED GUELLNER OF THE FORSA POLLING INSTITUTE COMMUNAL ELECTIONS ARE THE ONES EASTERNERS CARE MOST ABOUT MR GUELLNER'S SURVEY DATA INDICATE EASTERNERS ARE MORE LIKELY TO VOTE IN COMMUNAL ELECTIONS THAN FEDERAL ONES PERHAPS THE ONLY PARTY THAT STANDS TO GAIN FROM THE DISARRAY IS THE PDS THE REFORMED AND RENAMED COMMUNIST PARTY THAT RULED EAST GERMANY UNTIL 1989 WITH 23000 MEMBERS IN BRANDENBURG THE PARTY HAS MORE THAN TWICE THE STRENGTH OF THE CDU AND MORE THAN THREE TIMES THAT OF THE SPD 9309080110 930908 LEISURE & ARTS V HEX TOUGH ENOUGH FOR BROOKLYN BY PATTI HAGAN BROOKLYN NY ON MY SPRING 1989 BROWSE THROUGH THE SISKIYOU CATALOG I ORDERED A PLANT I'D NEVER HEARD OF VANCOUVERIA HEXANDRA AS A SEATTLE EXPAT IN NEW YORK CITY I WAS HOMESICK FOR A PLANT FROM THE PACIFIC NORTHWEST VANCOUVERIA SOUNDED LIKE A HOMEPLANT CLOSE ENOUGH ANYWAY VANCOUVER'S NOT THAT FAR FROM SEATTLE IN ADDITION TO THE SISKIYOU MOUNTAINS SOUTHWEST OREGON HAS THE SISKIYOU RARE PLANT NURSERY ITS CATALOG CONFIRMED MY NORTHWEST NATIVIST SUSPICIONS ABOUT VANCOUVERIA WOODLAND CREEPING PLANTS FROM OUR LOCAL MOUNTAINS BETTER YET IT WAS A FINE WOODLAND GROUNDCOVER THAT SPREADS EASILY DECIDUOUS AND NICKNAMED INSIDEOUT FLOWER VANCOUVERIA'S PART SHADE NEEDS MET MY BIG CITY BACKYARD REALITIES MY REAR TIER IS IN NEAR FLAWLESS SHADE FROM LATE MAY ON THE MAY DAY THE VANCOUVERIA ARRIVED I HAD JUST BURIED A YOUNG PEKIN DUCK BELONGING TO GARDENDEFICIENT FRIENDS ACROSS THE STREET THE DUCK FUNNY WAS INTERRED NEAR THE PAPER/WHITE BIRCH BETULA PAPYRIFERA THAT MARKED THE 1985 GRAVE OF MY NOBLE GOLDEN RETRIEVER THURBER IN MY GARDEN'S POTTING FIELD THERE IT WAS IN THE SPRAWLING COMPANY OF HERB ROBERT GERANIUM ROBERTIANUM BOOTLEGGED FROM MY MOM'S GARDEN NEAR SEATTLE SENSITIVE FERN ONOCLEA SENSIBILIS WHITE BLEEDING HEART DICENTRA SPECTABILIS ALBA' VIRGINIA BLUEBELLS MERTENSIA VIRGINICA AND LEMON BALM MELISSA OFFICINALIS I LEFT THE VANCOUVERIA ALONE TO ACCULTURATE TO BROWNSTONE BROOKLYN BY FALL AFTER THE V HEX MOST DECIDUOUSLY DROPPED ITS LEAFLETS AND THE HARDY CYCLAMEN TOOK ON AUTUMN AND WINTER BLOOMANDLEAF DUTIES IN THAT LOCUS I FORGOT IT THE FOLLOWING SPRING GRACEFUL PANICLES OF INSIDEOUT FLOWERS SMALL ETHEREAL BACKWARDPETALLED WHITE BLOOMSTOOK ME BY SURPRISE AND SENT ME TO THE BOOKS THERE I FOUND VANCOUVERIA TO BE OF GOOD STANDING IN THE BARBERRY FAMILY AND RELATED TO OTHER GARDEN FAMILIARS EPIMEDIUM MAHONIA BERBERIS NANDINA AND PODOPHYLLUM MAYAPPLE VANCOUVERIA IS SOMETIMES ADDRESSED VANCOUVER FERN AND AMERICAN BARRENWORT BUT NOT BY ME VANCOUVERIA EFFORTLESSLY CONVEYS 200 YEARS OF HISTORY LOOK AT THE PLANT AND SEE CAPTAIN GEORGE VANCOUVER ENGLISH EXPLORER LANDING THE HMS DISCOVERY AT VANCOUVER IN L79L ACTUALLY VANCOUVERIA WAS BAPTIZED BY TWO PROMINENT 19THCENTURY BOTANISTS BELGIAN CHARLES JACQUES EDOUARD MORREN OF LIEGE AND FRENCH PLANTSMAN JOSEPH DECAISNE DIRECTOR OF THE JARDIN DES PLANTES IN PARIS VANCOUVERIA HEXANDRA IS IN CERTAIN OTHER RESPECTS ALSO NOT WHAT IT SEEMS IT IS AN ACCOMPLISHED FERN FAKE INDEED A GREAT MAIDENHAIR FERN IMPOSTOR BUT I DON'T HOLD THAT AGAINST IT AND THOSE FEW BOOKS THAT DO MENTION V HEX SPEAK WELL OF IT IN PERENNIALS FOR AMERICAN GARDENS RUTH ROGERS CLAUSEN AND NICOLAS H EKSTROM PRESENT THE VANCOUVERIAS THERE ARE THREE SPECIES AS DELICATE AND ORNAMENTAL GROUND COVERS IN SHADED PLACES PARTICULARLY UNDER SHRUBS CLAUSEN & EKSTROM HASTEN TO SAY THAT SUCH CREEPING AGGRESSION RAPIDLY MAKES FOR LARGE PATCHES OF DAINTY FOOTHIGH FOLIAGE REMINISCENT OF THAT OF MAIDENHAIR FERN THE 3LOBED BROADLY OVATE LEAFLETS ARE A FRESH GREEN MY FAVORITE VANCOUVERIA LEAF DESCRIPTIVE IS OVALISH FROM NORMAN TAYLOR 50 YEARS AGO IN THE PRACTICAL ENCYCLOPEDIA OF GARDENING IN ADDITION TO A WILLINGNESS TO GROW SUBSHRUB CLAUSEN & EKSTROM STATE THIS TOUGH DECIDUOUS GROUND COVER EVEN TOLERATES DRY SHADE AMEN GROUNDHUGGING PLANTS THAT THROW CARPETS OF FERNLIKE FOLIAGE ARE ALLAN M ARMITAGE'S WORDS FOR THE VANCOUVERIAS IN HERBACEOUS PERENNIAL PLANTS BUT WHEN THE ESTIMABLE ARMITAGE DECLARES VANCOUVERIA NOT AS TOUGH AS EPIMEDIUM I TAKE ISSUE IN MY EXPERIENCE VANCOUVERIA IS TOUGHER BY LATE JULY I QUIT DOING FOR THE PET&PLANT CEMETERY AT THE BACK OF THE GARDEN ONCE THE SPRING EPHEMERALS HAVE VANISHED THE OUTBACK IS ON ITS OWN MOST OF THE PLANTS ASTILBES HERB ROBERT CELANDINE FERNS MORE OR LESS BURN UP INCLUDING THE VANCOUVERIA'S NEAR KIN AND CROSSPATH DENIZEN EPIMEDIUM NO MATTER THE V HEX NEVER CURLS A LEAF NEVER WILTS NEVER LOOKS OTHER THAN CRISP FRESH GREEN COOL ALTHOUGH I DO NOTHING FOR IT I DON'T CARRY WATER I DON'T FERTILIZE STILL PASSIVELY AGGRESSIVELY RHIZOMATOUSLY THE VANCOUVERIA ENLARGES ITS IMPOSTURING PRESENCE IN MY REARGARDEN SHADE DESERT VANCOUVERIA IS HARDY TO ZONE 5 AND IN THE NATURAL SHADE GARDEN MY ZONE 6 NEIGHBOR KEN DRUSE WELCOMES IT TO THE NETHERGARDEN AS A LIGHT AND AIRY ALTERNATIVE TO SO MANY OF THE LEATHERLEAF SUBSHRUBS HARRIET K MORSE THE LATE AMERICAN SHADE OPTIMIST IN GARDENING IN THE SHADE PRAISED VANCOUVERIA FOR BEING CONTENT IN MUCH SHADE MODERN ENGLISH GARDENBOOK WRITERS DON'T MUCH MENTION VANCOUVERIA THOUGH WILLIAM ROBINSON DID SIXTY YEARS AGO IN THE ENGLISH FLOWER GARDEN V HEXANDRA WAS EXTOLLED AS A MOST GRACEFUL AND DISTINCT PLANT L0 TO L8 INCHES HIGH WITH LIGHT FERNLIKE LEAVES A CHARMING PLANT FOR THE FERNERY AND ROCK GARDEN ROBINSON'S ENCOMIUM STANDS VANCOUVERIA HAS TO BE ONE OF THE MOST DAINTILY HANDSOME HORTICULTURALLY UNKNOWN DISTINCTLY EASYGOING GROUNDHUGGABLE OVALISHLEAFED USEFUL DROUGHTCOMFORTABLE NEGLECTTOLERANT SHADE STALWARTS AROUND GARDENING IN AN INCREASINGLY DROUGHTY SHADY WORLD MORE GARDENERS WOULD DO WELL TO PLANT THIS TOUGH LITTLE HERB WITH THE CHLOROPHYLL BLUSH CLAUSEN & EKSTROM SAY THAT VANCOUVERIA HEXANDRA WHILE NOT COMMON IS AVAILABLE NOT VERY THE 1993 ANDERSEN HORTICULTURAL LIBRARY'S SOURCE LIST OF PLANTS AND SEEDS GIVES JUST TWO MAILORDER PLANT SOURCES SISKIYOU RARE PLANT NURSERY 2 2825 CUMMINGS ROAD MEDFORD ORE 9750L 5037726846 AND RUSSELL GRAHAM PURVEYOR OF PLANTS 2 4030 EAGLE CREST ROAD NW SALEM ORE 97304 5033621135 AND ONLY ONE FOR SEEDS WHICH ARE OTHERWISE ANTDISPERSED WHICH ARE INTERMITTENTLY AVAILABLE SOUTHWEST NATIVE SEEDS L PO BOX 50503 TUCSON ARIZ 85703 9309080109 930908 MARKETING & MEDIA BERTELSMANN AG'S US PUBLISHING ARM NAMES HEINS PRESIDENT NEW YORK GRUNER & JAHR USA PUBLISHING THE US PUBLISHING ARM OF GERMANY'S BERTELSMANN AG NAMED A NEW PRESIDENT AND CHIEF EXECUTIVE REPLACING ONE OF THE FEW WOMEN IN THE TOP EXECUTIVE RANKS OF AMERICAN MAGAZINES JOHN HEINS WHO HAS SERVED IN PARIS AS INTERNATIONAL DEVELOPMENT DIRECTOR FOR GRUNER & JAHR WAS NAMED TO REPLACE ELIZABETH CROW AS PRESIDENT AND CHIEF EXECUTIVE OF THE US MAGAZINE GROUP MS CROW WHO HAD ALSO BEEN EDITORIAL DIRECTOR OF THE MAGAZINE GROUP SINCE 1988 IS RETURNING TO HANDSON JOURNALISM ACCORDING TO A COMPANY STATEMENT GRUNER & JAHR USA PUBLISHES PARENTS A LARGECIRCULATION TITLE FOR YOUNG PARENTS AND OTHER MAGAZINES SUCH AS YM FOR TEENAGE GIRLS THE GROUP ALSO PRODUCES A LINE OF CHILDREN'S BOOKS EDUCATIONAL TOYS AND HOME VIDEOS AMONG OTHER FAMILY RELATED PRODUCTS MR HEINS WILL HEAD THE COMPANY BUT WILL NOT SERVE AS EDITORIAL DIRECTOR ACCORDING TO A SPOKESWOMAN BEFORE JOINING GRUNER & JAHR IN 1991 MR HEINS WAS A REPORTER FOR FORBES FOR SIX YEARS MS CROW HAD BEEN EDITORINCHIEF OF PARENTS MAGAZINE FROM 1978 TO 1988 DURING HER TENURE AS PRESIDENT GRUNER & JAHR'S MAGAZINE REVENUES GREW BY MORE THAN 50 THE COMPANY SAID 9309080108 930908 MARKETING & MEDIA EUROPEAN PUBLISHERS AGREE JOINTLY TO BUY MAXWELL'S PF COLLIER NEW YORK TWO EUROPEAN PUBLISHERS AGREED TO ACQUIRE JOINTLY ENCYCLOPEDIA PUBLISHER PF COLLIER INC FOR 43 MILLION FROM THE LATE ROBERT MAXWELL'S BUSINESS EMPIRE THE JOINT BUYERS ARE ISTITUTO GEOGRAFICO DE AGOSTINI BASED IN NOVARA ITALY AND PLANETA SA OF BARCELONA SPAIN THE TWO SAID THEY WILL OWN NEW YORKBASED COLLIER AS A 5050 JOINT VENTURE BUT THE VENTURE WILL OPERATE UNDER A SUBSIDIARY OF THE ITALIAN PARTNER EDITIONS ATLAS RUN BY DE AGOSTINI EXECUTIVE PATRICK LEMARCHAND COLLIER IS A UNIT OF LONDONBASED MAXWELL COMMUNICATION CORP WHICH IS IN BANKRUPTCYLAW PROCEEDINGS MAXWELL'S ASSETS ARE BEING SOLD BY JP MORGAN & CO FOR PRICE WATERHOUSE THE COURTAPPOINTED ADMINISTRATOR PUBLISHING SOURCES SAID COLLIER'S SALES REPORTED AT 80 MILLION IN LATE 1990 SLIPPED TO ABOUT 64 MILLION IN 1992 AND ARE EXPECTED TO SLIP TO ABOUT 40 MILLION IN 1993 ALSO THE SOURCES SAID COLLIER IS BARELY PROFITABLE MR LEMARCHAND THE EXECUTIVE FROM THE ITALIAN PUBLISHER WHO WILL RUN COLLIER SAID COLLIER WAS HURT FINANCIALLY BY A CHANGE LAST YEAR IN DISTRIBUTION SWITCHING FROM SELLING THE ENCYCLOPEDIA THROUGH INDEPENDENT CONTRACTORS TO CURRENTLY BUILDING AN INHOUSE SALES FORCE THE COMPANY WENT THROUGH SOME TROUBLES BUT WE BELIEVE THE PRODUCT ITSELF HAS KEPT UPDATED AND MAINTAINED ITS CREDIBILITY MR LEMARCHAND SAID SALES OF THE ENCYCLOPEDIA ARE NOW TWOTHIRDS IN THE US AND THE REST ABROAD WE THINK WE CAN INCREASE SALES WORLDWIDE 9309080107 930908 POLITICS & POLICY GORE VS GRACE DUELING REINVENTIONS SHOW HOW CLINTON REAGAN VIEWS OF GOVERNMENT DIFFER BY DAVID WESSEL AND TIMOTHY NOAH STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BACK IN 1984 BUSINESSMAN J PETER GRACE HANDED PRESIDENT REAGAN 2478 RECOMMENDATIONS TO CUT GOVERNMENT SPENDING THAT HE SAID WERE DESIGNED TO GET GOVERNMENT OFF THE BACKS OF THE AMERICAN PEOPLE THE NATIONAL PERFORMANCE REVIEW THAT VICE PRESIDENT AL GORE TURNED OVER TO PRESIDENT CLINTON YESTERDAY BORROWS A FEW OF MR GRACE'S SUGGESTIONS BUT ITS MISSION IS DISTINCTLY DIFFERENT TO MAKE GOVERNMENT WORK BETTER WHILE ALSO MAKING IT COST LESS IN THE VIEW OF MR REAGAN AND MR GRACE THE LESS GOVERNMENT THE BETTER MR CLINTON AND MR GORE BY CONTRAST ENVISION A GOVERNMENT THAT DOES MORE BUT DOES IT BETTER THEY WANT TO PUT A SOUPEDUP ENGINE IN THE CAR SO IT CAN GO FASTER AND TAKE MORE PASSENGERS SAYS JOHN DIIULIO JR A PRINCETON PROFESSOR AND COAUTHOR OF A RECENT BROOKINGS INSTITUTION STUDY ON IMPROVING GOVERNMENT PERFORMANCE THIS IS AN ATTEMPT TO REFORM THE FEDERAL BUREAUCRACY IN ORDER TO EXPAND THE FEDERAL GOVERNMENT THAT ISN'T EXACTLY THE WAY MR CLINTON OR MR GORE PUT IT OF COURSE SCARRED BY THE CHARGES THAT MR CLINTON IS JUST ANOTHER TAXANDSPEND DEMOCRAT THE WHITE HOUSE AND MR GORE IN PARTICULAR PUSHED HARD TO SHOW THAT THE RECOMMENDATIONS WILL SAVE MONEY THE REPORT WHICH ACKNOWLEDGES THAT IT'S IMPOSSIBLE TO ESTIMATE HOW MUCH MANY OF ITS SUGGESTIONS MIGHT SAVE SAYS THE RECOMMENDATIONS WOULD SAVE 108 BILLION OVER THE FIVE YEARS BEGINNING OCT 1 1994 AN EARLIER PLAN TO TALLY THE SAVINGS OVER THE FIVE YEARS BEGINNING OCT 1 1993 WAS DROPPED BECAUSE THE TOTAL FELL SHORT OF 100 BILLION MR GRACE CLAIMED HIS PLAN WOULD SAVE 424 BILLION OVER THREE YEARS THOUGH THE GENERAL ACCOUNTING OFFICE AND THE CONGRESSIONAL BUDGET OFFICE CONCLUDED THAT TOTAL WAS OVERSTATED BY AT LEAST A THIRD MINDFUL OF THAT THE WHITE HOUSE BUDGET OFFICE WENT OVER MR GORE'S REPORT TO AVOID WIDELY OVERSTATED CLAIMS ABOUT A THIRD OF THE 108 BILLION IN SAVINGS WOULD COME FROM SPENDING CUTS OR FEE INCREASES THAT ARE SPECIFIED IN AN APPENDIX TO THE DOCUMENT ANOTHER THIRD WOULD COME FROM REDUCING THE FEDERAL CIVILIAN WORK FORCE BY 12 OR 252000 POSITIONS OVER THE NEXT FIVE YEARS THE FINANCIAL TOTAL DOESN'T INCLUDE THE SAVINGS FROM MR CLINTON'S PREVIOUSLY PROPOSED ELIMINATION OF 100000 JOBS BUT NEITHER DOES IT COUNT THE COST OF SEVERANCE PAY OR EARLY RETIREMENT INCENTIVES THE FINAL THIRD FOR WHICH THE REPORT OFFERS LITTLE SUPPORTING EVIDENCE IS TO COME FROM USING COMPUTERS MORE EFFECTIVELY AND STREAMLINING THE GOVERNMENT'S PROCUREMENT PRACTICES BUT MORE SIGNIFICANTLY WHILE THE GRACE COMMISSION PROPOSED USING ALL THE SAVINGS TO REDUCE THE DEFICIT THE GORE REPORT DOESN'T ACTUALLY SAY WHERE THE SAVINGS SHOULD GO REPUBLICANS YESTERDAY PROPOSED TO LOWER SPENDING CEILINGS SET LAST MONTH BY THE FULL 108 BILLION SO THE MONEY CAN'T BE SPENT FOR ANYTHING ELSE BUT AT LEAST SOME CLINTON ADMINISTRATION OFFICIALS SEE THE SAVINGS AS A WAY TO FINANCE MR CLINTON'S PROPOSALS TO INCREASE INVESTMENT SPENDING IT'S TOO SOON TO TELL WHETHER THE GORE INITIATIVE WILL PROVE MORE SUCCESSFUL THAN MR GRACE'S QUEST THE REAGAN ADMINISTRATION CLAIMED THAT ALMOST ALL OF THE GRACE RECOMMENDATIONS WERE IMPLEMENTED BUT MANY OF THE BIG MONEYSAVERS WHICH CALLED FOR SUBSTANTIALLY REDUCING FEDERAL PENSIONS AND OTHER GOVERNMENT BENEFITS WEREN'T PUT INTO PRACTICE THE RESULT WAS THAT THE EFFORT MADE LITTLE DENT IN THE SIZE OF THE GOVERNMENT OR THE BUDGET DEFICIT SAYS JOSEPH WRIGHT WHO WAS DEPUTY DIRECTOR OF THE REAGAN BUDGET OFFICE CONGRESS WAS FEEDING THE SYSTEM FASTER THAN WE COULD REDUCE IT HE SAYS MR CLINTON ARGUED YESTERDAY THAT THIS NEW INITIATIVE HAS A BETTER CHANCE OF SUCCEEDING THAN ITS PREDECESSORS FIRST OF ALL HE SAID FRANKLY THIS IS A BETTER REPORT IT'S NOT JUST A REPORT IN WHICH ONE GROUP OF AMERICANS TELLS ANOTHER HERE ARE BIG THINGS WE DON'T NEED TO DO ANY MORE SECOND HE SAID THERE IS MORE PUBLIC AND CONGRESSIONAL SUPPORT FOR THESE REFORMS THAN IN THE PAST AND THIRD THERE IS A PRESIDENT HERE WHO WILL DO MORE THAN TALK MR CLINTON'S PERSONAL INVOLVEMENT MATTERS SAYS FRANK HODSOLL WHO WAS DEPUTY DIRECTOR FOR MANAGEMENT IN THE WHITE HOUSE BUDGET OFFICE UNDER PRESIDENT BUSH IT MAKES A POINT WITH THE POLITICAL SYSTEM THE CONGRESS IN PARTICULAR BUT ALSO WITH THE LIEUTENANTS OF THE PRESIDENTTHAT HE CARES ABOUT THIS HE'S SPENDING HIS OWN POLITICAL CAPITAL BY DOING THIS IT WILL SURELY TAKE POLITICAL CAPITAL TO PUSH SOME OF THE GORE RECOMMENDATIONS THROUGH CONGRESS THE NEW REPORT FOR INSTANCE ASKS CONGRESS TO SELL OFF THE ALASKA POWER AUTHORITY AND TO INCREASE ELECTRIC BILLS IN THE PACIFIC NORTHWEST BY REDUCING FEDERAL SUBSIDIES PRESIDENTS REAGAN AND BUSH BOTH TRIED REPEATEDLY TO DO THE SAME WITHOUT SUCCESS BATTLESCARRED VETERANS OF THE BUREAUCRACY SMILED YESTERDAY AS THEY SAW MR CLINTON AND MR GORE REPEAT MR REAGAN'S ATTEMPT OFTEN CRITICIZED BY DEMOCRATS TO REDUCE THE SOCIAL SECURITY DISABILITY COSTS BY FORCING THOSE WHO ARE NO LONGER DISABLED OFF THE ROLLS BUT UNLIKE THE GRACE COMMISSION REPORT MR GORE'S AVOIDS MOST MENTION OF REDUCING GOVERNMENT BENEFITS A CONTROVERSIAL PROPOSAL TO LIMIT FARMSUBSIDY PAYMENTS WAS DROPPED IN THE FINAL DRAFT AND WHILE MR GRACE FOLLOWING THE MANAGEMENT PRACTICE OF HIS GENERATION RELENTLESSLY URGED CENTRALIZATION THE GORE REPORT EMBRACES THE RECENT CORPORATE TREND TOWARDS DECENTRALIZATION ALTHOUGH THE NEW REPORT IS CRITICAL OF GOVERNMENT IT IS FAR LESS ADVERSARIAL THAN MR GRACE'S VOLUMINOUS EFFORT IN PART BECAUSE THE GORE REPORT WAS WRITTEN LARGELY BY GOVERNMENT EMPLOYEES THE SPIRITUAL TONE OF THIS THING IS FREE UP THESE INTELLIGENT RESOURCES CALLED CIVIL SERVANTS SAYS TOM PETERS COAUTHOR OF IN SEARCH OF EXCELLENCE WHICH BROUGHT THE GOSPEL OF DECENTRALIZATION TO CORPORATE AMERICA IN CONTRAST HE SAYS THE GRACE COMMISSION REPORT WAS WRITTEN BY GOOD RIGHTWING REPUBLICANS WHO'D NEVER MET A FEDERAL BUREAUCRAT WHO SHOULDN'T BE BEHIND BARS MR GORE'S PROPOSAL TO ALTER THE ROLE OF INSPECTORS GENERAL CAPTURES THE DIFFERENCE CREATED TO ROOT OUT WASTE FRAUD AND ABUSE IN CABINET DEPARTMENTS THE INSPECTORS GENERAL WERE SO SUCCESSFUL THAT THE REPORT ARGUES THEY HAVE INHIBITED INNOVATION BY FEDERAL EMPLOYEES WHO FEEL COMPELLED TO FOLLOW EVERY RULE DOCUMENT EVERY DECISION AND FILL OUT EVERY FORM THE RESULT SAYS PAUL LIGHT A UNIVERSITY OF MINNESOTA PROFESSOR WHO HAS STUDIED INSPECTOR GENERAL OFFICES IS A GOTCHA' MENTALITY THAT WORKS AGAINST MORE FUNDAMENTAL REFORM OF GOVERNMENT PROCESSES YOU CAN SPEND THE REST OF YOUR LIFE GOING OUT AND FINDING SOCIAL SECURITY PAYEE FRAUD HE SAYS BY CONTRAST MR GORE'S REPORT URGES THE INSPECTORS GENERAL TO SHIFT FROM A GREENEYESHADE PERSPECTIVE TO BROADER EXAMINATION OF HOW TO PREVENT WASTE IN THE FIRST PLACE AND TO ENSURE EFFICIENT EFFECTIVE SERVICE SELECTED RECOMMENDATIONS FROM GORE'S NATIONAL PERFORMANCE REVIEW AND THE 1984 PRIVATE SECTOR SURVEY ON COST CONTROL HEADED BY J PETER GRACE 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 9309080106 930908 WHO'S NEWS ARMSTRONG INDUSTRIES GIVES LORCH POSITIONS OF PRESIDENT AND CEO LANCASTER PA ARMSTRONG WORLD INDUSTRIES INC NAMED GEORGE A LORCH 51 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER MR LORCH WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT OF THIS MAKER OF INTERIOR FURNISHINGS HE SUCCEEDS WILLIAM W ADAMS 59 AS PRESIDENT MR ADAMS WHO PREVIOUSLY CARRIED OUT THE DUTIES OF CHIEF EXECUTIVE WILL REMAIN CHAIRMAN OF ARMSTRONG THE RETIREMENT AGE FOR AN EXECUTIVE OF MR ADAMS'S SENIORITY IS 65 A SPOKESMAN SAID THE CHANGES COME AT A TIME WHEN THE COMPANY ALTHOUGH HURT BY THE RECESSION IS SEEKING TO COMPETE MORE AGGRESSIVELY IN OVERSEAS MARKETS MR LORCH IS PARTICULARLY STRONG IN MARKETING THE SPOKESMAN SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ARMSTRONG CLOSED AT 38625 UP 375 CENTS 9309080105 930908 WHO'S NEWS BIOWHITTAKER SHUFFLES SENIOR MANAGEMENT NAMES FINANCE CHIEF WALKERSVILLE MD BIOWHITTAKER INC ANNOUNCED SOME SENIOR LEVEL MANAGEMENT CHANGES CONSOLIDATING ITS PRODUCT MANAGEMENT UNDER ONE EXECUTIVE AND NAMING A NEW CHIEF FINANCIAL OFFICER THE HEALTH CARE AND BIOTECHNOLOGY PRODUCTS SUPPLIER NAMED THOMAS R WINKLER 51 YEARS OLD AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER A NEW POSITION MR WINKLER WILL OVERSEE THE COMPANY'S THREE PRODUCT LINES CELL CULTURES ENDOTOXIN DETECTION AND CLINICAL DIAGNOSTICS MR WINKLER FORMERLY VICE PRESIDENT AND GENERAL MANAGER HAD SHARED THE DUTIES WITH PHILIP L ROHRER 36 MR ROHRER WAS NAMED CHIEF FINANCIAL OFFICER A POSITION HE HELD AT THE COMPANY FROM 1988 TO 1992 AS PART OF THE RESTRUCTURING THE COMPANY SAID JAMES WERNER JR 46 WOULD STEP DOWN AS CHIEF FINANCIAL OFFICER THERE WERE TOO MANY PEOPLE AND TOO FEW JOBS A SPOKESWOMAN SAID MR WERNER COULDN'T BE REACHED FOR COMMENT IN FISCAL 1992 BIOWHITTAKER HAD SALES OF 516 MILLION 9309080104 930908 INTERNATIONAL SWISS JOBLESS RATE IS UP BERN SWITZERLAND SWITZERLAND'S UNEMPLOYMENT RATE EDGED UP TO 47 OF THE WORK FORCE IN AUGUST FROM 46 IN JULY THE GOVERNMENT ANNOUNCED IN AUGUST 1992 THE RATE WAS 31 LAST MONTH 169009 PERSONS WERE REGISTERED AS WITHOUT WORK AGAINST 5236 OPEN JOBS IN JULY 165290 PEOPLE WERE UNEMPLOYED AGAINST 5645 OPEN POSITIONS 9309080103 930908 BUSINESS BRIEF S&P MAY DOWNGRADE RATINGS ON THE DEBT OF 4 JAPANESE UTILITIES NEW YORK STANDARD & POOR'S CORP SAID IT MAY DOWNGRADE DEBT RATINGS OF FOUR JAPANESE ELECTRIC UTILITIES DUE TO THE LIKELY LOWERING OF ELECTRICITY RATES BY THE JAPANESE GOVERNMENT THE RATING AGENCY PLACED THE TRIPLEA SENIOR DEBT RATING OF TOKYO ELECTRIC POWER CO ON CREDITWATCH WITH NEGATIVE IMPLICATIONS AFFECTING ABOUT 30 BILLION OF DEBT CHUGOKU ELECTRIC POWER CO'S DOUBLEA SENIOR DEBT RATING WAS ALSO PLACED ON THE LIST WITH NEGATIVE IMPLICATIONS AFFECTING ABOUT 12 BILLION IN DEBT S&P ALSO SAID IT MIGHT DOWNGRADE THE DOUBLEAPLUS SENIOR DEBT RATING OF CHUBU ELECTRIC POWER CO AFFECTING ABOUT 29 BILLION OF RATED DEBT AND THE DOUBLEA SENIOR DEBT RATING OF SHIKOKU ELECTRIC POWER CO ALSO MAY BE DOWNGRADED WHICH WOULD AFFECT ABOUT 700 MILLION OF DEBT S&P SAID THE MOVES ARE BASED ON THE LIKELIHOOD THAT JAPAN WILL CUT ELECTRICITY RATES CONTRIBUTING TO THE FURTHER EROSION OF THE FINANCIAL PROFILES OF THE JAPANESE ELECTRIC UTILITIES THE AGENCY SAID THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY IS SAID TO BE CONSIDERING THE MOVE IN ORDER TO SHARE CURRENCY EXCHANGE GAINS WITH CONSUMERS S&P NOTED WHICH WILL LIKELY CUT INTO UTILITY COMPANY EARNINGS S&P ALSO NOTED FLAT SALES AND HEAVY ONGOING CAPITAL EXPENDITURE PROGRAMS ARE PRESSURING THE COMPANIES' OPERATING MARGINS MORE THAN OFFSETTING BENEFITS GAINED FROM THE RECENT APPRECIATION OF THE YEN S&P SAID IT WILL EVALUATE THE IMPACT OF NEW RATES WHEN THEY ARE ANNOUNCED AND WILL MORE BROADLY CONSIDER WHETHER THE REGULATORY CLIMATE HAS CHANGED 9309080102 930908 REVIEW & OUTLOOK EDITORIAL THE RESTRAINED ECONOMY WE READ IN THE HEADLINES THAT THE POSTLABOR DAY PREOCCUPATIONS OF THE CLINTON ADMINISTRATION ARE GIVING THE ECONOMY A NEW BOOST AND MAKING GOVERNMENT MORE EFFICIENT THEY COULD ALWAYS CUT TAXES AND STOP ASSUMING BIG NEW BURDENS SUCH AS HEALTH CARE BUT WE SUPPOSE THAT'S OUT SO WHAT'S LEFT HOW ABOUT OUR OLD FRIENDS REGULATION AND LITIGATION INDEED WE SUSPECT THAT THESE SHACKLES ON PROMETHEUS GO FAR TOWARD EXPLAINING WHY THE ECONOMY HAS STAGED A LANGUID RECOVERY THE BUSH ADMINISTRATION DID CRACK DOWN ON REGULATION IN ITS FINAL YEAR AND VICE PRESIDENT QUAYLE SPENT MUCH OF HIS TENURE TAKING ON THE LAWYERS STILL THE KINDER AND GENTLER REPUBLICANS DID MORE THAN THEIR SHARE OF DAMAGE VIA THE ARMS OF GOVERNMENT THAT FILL UP THE FEDERAL REGISTER AND THE CURRENT WINDS ARE EVEN MORE CHILLING STUDIES HAVE TRIED TO MEASURE SLACK IN THE AMERICAN ECONOMIC GROWTH RATE FROM REGULATORY DRAG THOMAS HOPKINS OF THE ROCHESTER INSTITUTE OF TECHNOLOGY ESTIMATED ACTUAL COSTS FOR 1992 AT 564 BILLION ON A GDP OF ABOUT 6 TRILLION IF YOU TAKE OUT THE EFFECTS OF TRADE BARRIERS AN INCOME TRANSFER THAT SOME OTHER EXPERTS DON'T THINK SHOULD BE LUMPED IN THE NUMBER DIPS BELOW 500 BILLION MR HOPKINS RELIED HEAVILY ON ESTIMATES BY THE ENVIRONMENTAL PROTECTION AGENCY OF ITS OWN HANDIWORK BUT THE CLEAN AIR ACT AND ITS COUSINS ACCOUNT FOR ONLY A QUARTER OF THE LOAD HE CALCULATES AS THE COST OF COMPLYING WITH WASHINGTON FOR THAT MATTER A FULL WEIGHING OF REGULATORY HEFT WOULD NEED TO MEASURE SUBSTITUTION AND OPPORTUNITY COSTS TOO WHO KNOWS FOR EXAMPLE WHAT INNOVATIONS IN BIOTECHNOLOGY WILL NOT TAKE PLACE UNDER THE PSEUDOSCIENCE OF AL GORE THEN COMES THE LITIGATION THAT CONGRESS AND THE WHITE HOUSE HAVE INVITED FORGET THE TORTS THAT LAWYERS DREAM UP ON THEIR OWN IN EMPLOYMENT LAW ALONE AN ONRUSH OF CASES IS JUST HITTING THE FEDERAL COURTS AT LAST SEPTEMBER'S ACCOUNTING THE NUMBER OF EMPLOYMENT CASES IN THE FEDERAL COURTS JUMPED 29 OVER THE PREVIOUS YEAR MEANWHILE AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHERE MOST OF THESE ACTIONS MAKE THEIR FIRST PIT STOP THE NUMBERS ARE NEARLY AS STRIKING SEXUAL HARASSMENT FILINGS ROSE MORE THAN 53 IN FISCAL 1992 PERHAPS NO SURPRISE AFTER THE ANITA HILL CIRCUS TOTAL TITLE 7 CIVIL RIGHTS ACTION OF WHICH HARASSMENT IS A PART CLIMBED TO NEARLY 102000 UP MORE THAN 8 AFTER YEARS OF FAIRLY STEADY NUMBERS AGE DISCRIMINATION CHARGES WERE A QUARTER HIGHER THAN IN FISCAL 1990 AND OF COURSE THE DISABILITY ACT RESULTS BEGAN TO BE FELT STATE COURTS MEANWHILE CONFRONT ANOTHER TYPE OF EMPLOYMENT LITIGATION FOR WRONGFUL TERMINATION A SOONTOBERELEASED RAND CORP STUDY FINDS THAT A PARTIAL CALIFORNIA CURB ON PUNITIVE DAMAGES IN THESE CASES HAS NOT MUCH AFFECTED THE OVERALL LEVEL OF DISCHARGE LAWSUITS INSTEAD PLAINTIFFS' COUNSEL HAVE SHIFTED THEIR LINES OF ATTACK TO PURSUE THE BIGMONEY JUDGMENTS STILL AVAILABLE FOR THE MOST PART THIS MEANS ASSERTING A PUBLIC POLICY ELEMENT SUCH AS BIAS AGAINST ANYONE WHO ISN'T WHITE UNDER AGE 40 AND PHYSICALLY ABLE BILL CLINTON YOU MAY RECALL CAMPAIGNED ON A PROMISE TO CUT THE FEDERAL BUREAUCRACY BUT THE CENTER FOR THE STUDY OF AMERICAN BUSINESS AT WASHINGTON UNIVERSITY IN ST LOUIS IN ITS LATEST ANALYSIS FINDS THAT REGULATORY STAFFING SHOWS A SLIGHT INCREASE IN THE PRESIDENT'S BUDGET FOR THIS COMING YEAR IN ALL 128615 POSITIONS IN THE US GOVERNMENT ARE ASSIGNED TO WATCHING OVER THE REST OF US IT HAS TAKEN THE NEW PRESIDENT AWHILE TO GET IN PLACE THROUGHOUT WASHINGTON THE ROSTER OF ACTIVISTS AND LEGAL BEAGLES THAT FORMS THE CORE OF TODAY'S DEMOCRATIC PARTY BUT FOR THE MOST PART THOSE FOLKS ARE AT THEIR DESKS NOW THE QUESTION IS HOW MANY OF US WILL STILL BE AT OURS BY THE TIME THEY'RE THROUGH 9309080101 930908 WHO'S NEWS BORDEN INC NAMES OUTSIDER AS PRESIDENT OF US DAIRY BUSINESS NEW YORK BORDEN INC NAMED ROBERT W ALLEN PRESIDENT OF ITS TROUBLED US DAIRY OPERATIONS UNDERSCORING ITS RESOLVE TO LOOK OUTSIDE FOR EXECUTIVE TALENT MR ALLEN 50 YEARS OLD WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOLSWESSANEN USA DAIRIES IN BINGHAMTON NY A UNIT OF ROYAL BOLSWESSANEN OF THE NETHERLANDS THAT OPERATES TWO REGIONAL DAIRY COMPANIES WITH ABOUT 750 MILLION IN SALES HE TAKES OVER THE DUTIES OF MITCHELL WIENICK WHO RESIGNED IN JULY TO TAKE A POST AT AMERITECH A 17YEAR INDUSTRY VETERAN MR ALLEN'S IMMEDIATE TASK IS TO RESTORE THE 15 BILLION DAIRY OPERATIONS WHICH INCLUDE MILK ICE CREAM AND OTHER FROZEN DESSERTS AND CULTURED PRODUCTS TO PROFITABILITY FOR THE FIRST TIME IN AT LEAST A DECADE THE BUSINESS HAD A LOSS IN THE SECOND QUARTER COMPANY EARNINGS FELL 65 TO 277 MILLION OR 20 CENTS A SHARE ON QUARTERLY SALES OF 166 BILLION THERE IS QUITE A TASK AT HAND SAYS NOMI GHEZ ANALYST FOR GOLDMAN SACHS WHO CITES SUCH PROBLEMS AS LOCAL COMPETITION AND ENCROACHMENT BY STORE BRANDS THE FIRST ORDER OF BUSINESS IS TO STABILIZE WHERE WE ARE SAYS MR ALLEN MR ALLEN ALSO WILL BE SENIOR GROUP VICE PRESIDENT OF THE NORTH AMERICAN FOODS UNIT REPORTING TO ERVIN R SHAMES BORDEN'S NEW PRESIDENT AND CHIEF OPERATING OFFICER 9309080100 930908 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY 25 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9309080099 930908 MOODY'S RAISES DEBT RATINGS FOR CHRYSLER MOVE HELPS COMPANY'S BID TO CUT BORROWING COSTS S&P AWAITS LABOR TALKS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL MOODY'S INVESTORS SERVICE INC UPGRADED CHRYSLER CORP'S DEBT RATING TO INVESTMENT GRADE MOVING THE NO 3 US AUTO MAKER HALFWAY TOWARD ITS GOAL OF CUTTING ITS BORROWING COSTS SIGNIFICANTLY THE OTHER HALF DEPENDS ON WHETHER STANDARD & POOR'S CORP DOES THE SAME THING AND S&P SAYS IT WON'T MOVE UNTIL LABOR TALKS ARE OVER THIS FALL IN THE US THE UNITED AUTO WORKERS UNION IS FOCUSING EFFORTS TO NEGOTIATE AN INDUSTRYPATTERN CONTRACT ON FORD MOTOR CO BUT CHRYSLER IS THE TARGET OF THE CANADIAN AUTO WORKERS WHO COULD SHUT THE COMPANY DOWN WITH A STRIKE THERE STILL THE MOODY'S ACTION LATE YESTERDAY IS A GIANT STEP TOWARD GETTING CHRYSLER PAPER OUT OF THE JUNKBOND CATEGORY AND COULD SET THE STAGE FOR A DIVIDEND INCREASE BOTH OF THE BIG CREDITRATING CONCERNS DOWNGRADED CHRYSLER DEBT TO JUNK STATUS IN FEBRUARY 1991 FOR THE FIRST TIME SINCE THE AUTO MAKER'S BRUSH WITH INSOLVENCY IN THE LATE 1970S SMALLER FITCH INVESTORS SERVICE INC PROMOTED CHRYSLER TO INVESTMENT GRADE TWO MONTHS AGO ABOUT 13 BILLION OF LONGTERM DEBT WAS AFFECTED BY THE MOODY'S ACTION A CHRYSLER SPOKESMAN SAID MOODY'S ACTION IS GOOD NEWS AND WE ARE OPTIMISTIC THAT S&P WILL DO THE SAME SCOTT SPRINZEN AN ANALYST WITH S&P SAID S&P ISN'T EXPECTING CHRYSLER TO NEGOTIATE A NEW LABOR CONTRACT THAT WILL SIDETRACK ITS COSTCUTTING EFFORTS BUT WE CONSIDER NEGOTIATIONS TO BE A MAJOR DEVELOPMENT AND WE WANT IT RESOLVED BEFORE WE COMPLETE OUR REVIEW HE SAID MOODY'S UPGRADE OF CHRYSLER'S DEBT TO INVESTMENT GRADE FROM TWO NOTCHES BELOW INVESTMENT GRADE WAS FELT IMMEDIATELY IT CUT OUR INTEREST RATE PAYMENTS BY A HALF OF A POINT OR 5 MILLION ANNUALLY ON THE COMPANY'S 11 BILLION OF VARIABLERATE BONDS ISSUED TO FINANCE A NEW TECHNICAL CENTER IN SUBURBAN DETROIT A CHRYSLER SPOKESMAN SAID AN INVESTMENTGRADE CREDIT RATING FROM S&P COULD FURTHER REDUCE THE HIGHLAND PARK MICH AUTO MAKER'S BORROWING COSTS THOMAS P CAPO CHRYSLER'S TREASURER SAID THIS SUMMER THAT AN UPGRADE BY BOTH CREDIT CONCERNS WOULD CUT ANNUAL COSTS BY AT LEAST 33 MILLION THE UPGRADE COULD HAVE A LONGTERM IMPACT AS WELL SOLIDIFYING CHRYSLER'S COMEBACK IN FINANCIAL MARKETS AND ROBERT J EATON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT CHRYSLER'S ANNUAL MEETING THAT AN UPGRADE WAS SOMEWHAT OF A PREREQUISITE TO A DIVIDEND INCREASE ANALYSTS EXPECT CHRYSLER TO RAISE ITS 15CENT QUARTERLY DIVIDEND ONCE IT REACHES INVESTMENT GRADE HOWEVER THERE'S ENOUGH HAPPENING AT CHRYSLER TO SUPPORT THE NEW RATING WITHOUT WAITING FOR THE OUTCOME OF A NEW LABOR CONTRACT SAID MICHAEL J MULVANEY VICE PRESIDENT OF MOODY'S IF THE UNION NEGOTIATIONS ARE FAVORABLE THEN THERE IS A POSSIBILITY FOR FURTHER UPGRADES A FURTHER REVIEW OF CHRYSLER'S DEBT RATING WOULD FOCUS HEAVILY ON TERMS OF A NEW CONTRACT WITH THE UAW AND WILL CONSIDER CHRYSLER'S EXPANDING USE OF LEASE FINANCING PROGRAMS TO ENHANCE SALES MOODY'S CITED THE SUSTAINED MARKET SUCCESS OF CHRYSLER'S REDESIGNED MINIVANS AND JEEP GRAND CHEROKEE SPORTUTILITY VEHICLE AND INITIAL MARKET SUCCESS OF THE LH MIDSIZE SEDANS AND MOODY'S NOTED THAT CHRYSLER IS INTRODUCING A NEW RAM PICKUP TRUCK AND NEON SUBCOMPACT CAR WHICH SHOULD ENABLE CHRYSLER TO DERIVE GREATER PROFIT CONTRIBUTIONS FROM A BROADER PORTION OF ITS PRODUCT LINE CHRYSLER STOCK GAINED 375 CENTS TO CLOSE AT 42375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309080098 930908 SMALL STOCK FOCUS COLUMN BEGINS TODAY TODAY THE WALL STREET JOURNAL INTRODUCES SMALL STOCK FOCUS WHICH REPLACES THE COLUMN TITLED OTC FOCUS THE NEW COLUMN WILL PROVIDE READERS WITH MORE NEWS ABOUT SMALL STOCKS WHICH FOR MANY YEARS WERE SYNONYMOUS WITH OVERTHECOUNTER ISSUES A COLUMN THAT REPORTED AND ANALYZED THE MOVES OF STOCKS TRADED ON THE NASDAQ MARKET WAS THE APPROPRIATE FORUM FOR COVERING SMALL STOCKS BUT IN RECENT YEARS MANY ONCESMALL COMPANIES TRADED ON NASDAQ INTEL MICROSOFT AND MCI COMMUNICATIONS FOR EXAMPLE HAVE GROWN TO RIVAL ALL BUT THE LARGEST COMPANIES TRADED ON THE NEW YORK STOCK EXCHANGE WHEN SUCH STOCKS MAKE BIG MOVES THEY TEND TO INFLUENCE INORDINATELY THE PERFORMANCE OF THE NASDAQ COMPOSITE INDEX WHICH WAS LONG USED AS A MEASURE OF SMALLSTOCK MOVEMENTS THE NEW COLUMN WHICH APPEARS IN THIS ISSUE WILL CONCENTRATE ON PRICE MOVES OF SMALL STOCKS REGARDLESS OF WHERE THEY ARE TRADED IT WILL USE THE RUSSELL 2000 INDEX WHICH IS COMPOSED OF SMALL STOCKS TRADED ON THE NASDAQ THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE AS A MEASURE OF THE MARKET FOR SMALL ISSUES COVERAGE OF LARGE STOCKS NO MATTER WHERE THEY ARE TRADED WILL BE FOUND IN THE ABREAST OF THE MARKET COLUMN FORMERLY RESERVED FOR STOCKS TRADED ON THE NEW YORK STOCK EXCHANGE IT HAS BECOME INCREASINGLY CLEAR TO US THAT OUR READERS WANT MORE INFORMATION ABOUT SMALL STOCKS SAID PAUL STEIGER MANAGING EDITOR OF THE JOURNAL IT IS ONE OF THE MOST DYNAMIC AREAS OF THE INVESTMENT WORLD AND ONE WE INTEND TO REPORT ON MORE EXTENSIVELY WE FEEL WE CAN BEST ACCOMPLISH THAT BY CONCENTRATING ON SMALL STOCKS IN ONE FORUM AND LARGE STOCKS IN ANOTHER 9309080097 930908 CLINTON MOVES TO STREAMLINE GOVERNMENT PLAN LISTS 800 SUGGESTIONS TO IMPROVE EFFICIENCY INSTILL PUBLIC CONFIDENCE BY JEFFREY H BIRNBAUM AND PAULETTE THOMAS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON UNVEILED HIS PLAN TO STREAMLINE THE FEDERAL GOVERNMENT WITH PROPOSALS RANGING FROM A TOPTOBOTTOM OVERHAUL OF THE CIVILSERVICE SYSTEM TO ELIMINATION OF THE SUBSIDY FOR MOHAIR THE 168PAGE REPORT CONTAINS 800 RECOMMENDATIONS THE RESULT OF OVER SIX MONTHS OF WORK BY HUNDREDS OF GOVERNMENT EMPLOYEES AND OUTSIDE CONSULTANTS IT WAS PRESENTED TO THE PRESIDENT BY ITS CHIEF AUTHOR VICE PRESIDENT AL GORE AT A WHITE HOUSE CEREMONY TO DRAMATIZE THEIR PROPOSALS THE WHITE HOUSE STATIONED FORKLIFTS NEARBY HOLDING REAMS OF PAPER THAT BOTH MEN CHARACTERIZED AS UNNECESSARY FEDERAL REGULATIONS IF FULLY IMPLEMENTED THE SUGGESTIONS WOULD SAVE THE GOVERNMENT AN ESTIMATED 108 BILLION OVER FIVE YEARS AND REDUCE THE CIVILIAN FEDERAL WORK FORCE BY 252000 OR BY ABOUT 12 THE MEASURES WOULD MAKE IT EASIER TO FIRE INCOMPETENT WORKERS PRIVATIZE MANY FEDERAL FUNCTIONS AND DECENTRALIZE MANY PROCUREMENT AND PERSONNEL DECISIONS BUT THE MAIN POINT OF THE EXERCISE UNLIKE MOST PREVIOUS REFORM EFFORTS ISN'T SIMPLY TO HACK AWAY AT WASTEFUL GOVERNMENT IT IS DESIGNED INSTEAD TO INSTILL CONFIDENCE IN GOVERNMENT SO THAT MR CLINTON'S AMBITIOUS ACTIVISM HAS A BETTER CHANCE OF SUCCEEDING AS IMPORTANT AS ANYTHING ELSE THE PRESIDENT SAID IS TO REBUILD THE CONFIDENCE OF THE AMERICAN PEOPLE IN THIS GREAT PUBLIC ENTERPRISE MR CLINTON CHARACTERIZED GOVERNMENT AS OLDFASHIONED OUTDATED IT'S GOVERNMENT USING A QUILL PEN IN THE AGE OF WORDPERFECT BUT HE PLEDGED TO CHANGE THAT IT'S GOING TO WORK HE SAID WE'RE GOING TO DO IT ONE REASON IT MIGHT WORK IS THE ENTHUSIASM HE AND MR GORE ARE BRINGING TO THE EFFORT BOTH MEN WILL STUMP THE COUNTRY THIS WEEK HIGHLIGHTING THE PLAN IN ADDITION MR CLINTON HIMSELF COULD PUT AS MANY AS 45 OF THE RECOMMENDATIONS INTO EFFECT THROUGH EXECUTIVE ORDERS AND THE WHITE HOUSE IS COMMITTED TO PRESSING AT LEAST THREE SEPARATE PIECES OF LEGISLATION TO ENACT PROVISIONS HE CAN'T ORDER UNILATERALLY MR CLINTON FACES A POLITICAL IMPERATIVE TO GET AT LEAST SOME OF THE PLAN THROUGH CONGRESS HIS ADVISERS HAVE BEEN ARGUING THAT HE SHOULD DISCIPLINE GOVERNMENT IN WAYS THAT AREN'T USUALLY ASSOCIATED WITH DEMOCRATS IN ORDER TO PROVE THAT HE IS A DIFFERENT KIND OF DEMOCRAT WHAT'S MORE THE EXERCISE GIVES MR CLINTON A CHANCE TO WORK WITH REPUBLICANS AFTER MONTHS OF PARTISAN BICKERING OVER THE BUDGET MR CLINTON'S OTHER MAJOR INITIATIVES HEALTHCARE OVERHAUL AND THE FREETRADE AGREEMENT WITH CANADA AND MEXICO ALSO WILL REQUIRE EXTENSIVE COOPERATION WITH THE GOP THE PLAN ALSO IS IMPORTANT TO MR GORE AS IF TO POINT OUT THE EVENT'S SIGNIFICANCE TO HIS POLITICAL FUTURE HIS WIFE HIS FATHER HIS BROTHERINLAW AND OTHER MEMBERS OF HIS FAMILY ATTENDED YESTERDAY'S CEREMONY INITIAL SUPPORT FROM BOTH REPUBLICANS AND DEMOCRATS IN CONGRESS IMPROVES THE CHANCES FOR APPROVAL OF SUBSTANTIAL PARTS OF THE PLAN BUT OBSTACLES REMAIN LIBERALS WILL TEND TO WANT TO SLASH GOVERNMENT LESS AND CONSERVATIVES MORE THERE ALSO IS MUCH INERTIA IN THE SYSTEM ITSELF FOR INSTANCE THE PRESIDENT THOUGHT HE HAD DONE AWAY WITH THE COUNCIL ON ENVIRONMENTAL QUALITY AT THE BEGINNING OF HIS ADMINISTRATION ONLY TO LEARN THAT IT SURVIVES BECAUSE CONGRESS DIDN'T REVOKE ITS STATUTORY AUTHORITY THE NEW PLAN ALREADY HAS ENCOUNTERED CARPING FROM INSIDE THE GOVERNMENT FOR EXAMPLE TRANSPORTATION OFFICIALS EXPRESS DOUBTS ABOUT A PROPOSAL TO PARTLY PRIVATIZE THE AIR TRAFFIC CONTROL SYSTEM ALTHOUGH THE REPORT HAS A WIDE SWEEP A LOT OF ITS RECOMMENDATIONS ARE VAGUE IN MANY PROPOSALS WORDS SUCH AS IMPROVE AND STREAMLINE AREN'T FLESHED OUT ONE SUGGESTION THAT PURPORTS TO SAVE 4 BILLION SIMPLY CALLS ON THE SOCIAL SECURITY ADMINISTRATION TO IMPROVE ITS CLAIMS PROCESSING SOMETHING THE AGENCY HAS BEEN WORKING ON FOR YEARS WITH LITTLE RESULT CRITICS DOUBT THAT THE REPORT CAN SAVE AS MUCH MONEY AS IT PROFESSES IN SEVERAL INSTANCES THE REPORT CLAIMS 811 MILLION CAN BE RAISED FROM NEW FEES ON LOANS TO VETERANS FOR INSTANCE BUT THEY'LL BE LUCKY TO MAKE HALF OF THAT SAID ROBERT M O'TOOLE A FORMER VETERANS ADMINISTRATION OFFICIAL MANY SUGGESTIONS ARE LESS NEW IDEAS THAN NEW PACKAGING SOME ARE ALREADY REQUIRED UNDER LAW FOR EXAMPLE SUCH AS FOLDING THE SHRINKING SAVINGS AND LOAN CLEANUP AGENCY INTO THE FEDERAL DEPOSIT INSURANCE CORP AND THE BIGGEST MONEYSAVER AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO IMPOSE FEES FOR FOOD AND DRUG ADMINISTRATION SERVICES WAS INSTITUTED LAST YEAR FOR DRUG APPROVALS WHILE A PROPOSAL EARLIER THIS YEAR TO EXTEND THE FEES TO FDA APPROVAL OF MEDICAL DEVICES AND FOODS DIED IN A CONGRESSIONAL CONFERENCE COMMITTEE ONE OF THE TOUGHEST TESTS WILL BE WHETHER ARCANE PERSONNEL RULES COVERING 23 MILLION FEDERAL EMPLOYEES THREE TIMES THE NUMBER THAT WORK FOR GENERAL MOTORS CORP CAN BE STREAMLINED CENTRAL JOB REGISTERS GOVERNMENTWIDE APPLICATION FORMS AND THE CREAKY 10000PAGE FEDERAL PERSONNEL MANUAL WOULD ALL BE ABOLISHED AS WOULD THE 50YEAROLD SYSTEM OF JOB GRADES IN THEIR PLACE THE REPORT ENVISIONS LETTING AGENCY MANAGERS CALL THE SHOTS ON HIRING PROMOTING AND FIRING THEIR OWN EMPLOYEES I TOLD MY STAFF THAT TODAY WAS THE EARTHQUAKE AND THE TIDAL WAVE WILL BE COMING ALONG SAID JAMES KING DIRECTOR OF THE OFFICE OF PERSONNEL MANAGEMENT WHO SUPPORTS THE CHANGES BUT THERE ARE QUESTIONS WHETHER THE CUMBERSOME RULES CAN BE THROWN OUT WITHOUT UNDOING GOODGOVERNMENT SAFEGUARDS THE MORE YOU DECENTRALIZE THE MORE YOU GIVE THEM THE OPPORTUNITY TO HIRE THEIR FRIENDS AND RELATIVES SAID LAWRENCE KORB WHO SPENT FIVE YEARS AT THE PENTAGON IN THE REAGAN YEARS AS THE ASSISTANT SECRETARY OVERSEEING MANPOWER OTHER RECOMMENDATIONS IN THE PLAN WOULD GIVE COMPANIES MORE RESPONSIBILITY FOR MONITORING THEIR OWN COMPLIANCE WITH SAFETY AND HEALTH REGULATIONS TAKING SOME OF THE BURDEN OFF THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION UNDER THE PROPOSAL WHICH HAS OUTRAGED SOME UNION OFFICIALS COMPANIES COULD EITHER TRAIN EMPLOYEES TO HANDLE SAFETY INSPECTIONS OR HIRE THIRDPARTY INSPECTORS MUCH AS THEY NOW HIRE OUTSIDE AUDITORS LABOR SECRETARY ROBERT REICH PRIVATELY TOLD UNION OFFICIALS YESTERDAY THAT THE PLAN GOES TOO FAR TO SHIFT THE RESPONSIBILITY TO COMPANIES ADOPT A TWOYEAR BUDGET CYCLE INSTEAD OF THE CURRENT ANNUAL SYSTEM ENABLE THE PRESIDENT TO FORCE A VOTE ON RESCINDING APPROVED SPENDING ITEMS CURRENTLY CONGRESS CAN IGNORE PRESIDENTIAL RECISSION REQUESTS TRANSFER LAWENFORCEMENT FUNCTIONS OF THE DRUG ENFORCEMENT ADMINISTRATION TO THE FEDERAL BUREAU OF INVESTIGATION A PLAN THAT WAS GIVEN ONLY A LUKEWARM RESPONSE FROM CABINET OFFICERS PERMIT PEOPLE TO PAY THEIR TAXES BY CREDIT CARD AND SPEED UP THE PAYMENT OF TAX REFUNDS PRIVATIZE FUNCTIONS OF VARIOUS AGENCIES INCLUDING THE GOVERNMENT PRINTING OFFICE AND THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION CHANGE RIGID PROCUREMENT PROCEDURES TO GUIDING PRINCIPLES THAT PROMOTE DECENTRALIZED DECISIONMAKING SAVE 900 MILLION BETWEEN 1994 AND 1999 BY PREVENTING FEDERAL EMPLOYEES FROM COLLECTING SALARIES WHILE ON MILITARY RESERVE DUTY AND CUTTING HOUSING ALLOWANCES FOR DEPENDENTS OF RESERVISTS ON SHORTTERM ASSIGNMENTS ELIMINATE REGIONAL OFFICES OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OVER THE NEXT FIVE YEARS A MOVE THAT ALONG WITH OTHER CHANGES WOULD SAVE 167 MILLION REORGANIZE THE AGRICULTURE DEPARTMENT ELIMINATING 7500 OF THE 110000 EMPLOYEES OVER FIVE YEARS AND SAVING AN ESTIMATED 23 BILLION INCREASE THE FEE FOR FEDERAL LICENSES TO SELL FIREARMS TO 600 FROM 30 A MOVE THAT WOULD RAISE 1325 MILLION OVER FIVE YEARS ELIMINATE AN OBSCURE TAX CREDIT THAT ENCOURAGES DISTILLERS TO USE ARTIFICIAL RATHER THAN NATURAL FLAVORS IN MAKING GIN AND OTHER ALCOHOLIC BEVERAGES THIS WOULD SAVE 500 MILLION OVER FIVE YEARS SAVE 923 MILLION OVER FIVE YEARS BY ABOLISHING SUBSIDIES TO WOOL AND MOHAIR PRODUCERS AND SAVE 15 MILLION BY ABOLISHING HONEY SUBSIDIES BOTH PROGRAMS HAVE WANING SUPPORT IN CONGRESS REVISE AND UPDATE THE CONSUMER PRICE INDEX WHICH DETERMINES ADJUSTMENTS TO INCOME TAXES AND SOCIAL SECURITY AND OTHER BENEFITS AN INCREASE OF ONETENTH OF ONE PERCENTAGE POINT IN THE INDEX RAISES GOVERNMENT SPENDING BY ROUGHLY 400 MILLION AND REDUCES GOVERNMENT REVENUES BY 200 MILLION CONSOLIDATE THE GOVERNMENT'S DISPARATE FOODSAFETY INSPECTIONS IN THE FOOD AND DRUG ADMINISTRATION OVERHAUL THE AGENCY FOR INTERNATIONAL DEVELOPMENT POSSIBLY REDUCING THE NUMBER OF AID MISSIONS OVERSEAS BY HALF MOST OF THE CLOSINGS WOULD COME IN DEVELOPED COUNTRIES SHUT US INFORMATION AGENCY LIBRARIES IN DEVELOPED AND EMERGING COUNTRIES AND CONSOLIDATE OTHER US DIPLOMATIC FACILITIES ABROAD SAVE 2 BILLION AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BY CUTTING MANAGEMENT AND ELIMINATING DUPLICATION SEE RELATED ARTICLE UNIONS BELIEVE EXPANSION OF EMPLOYEES' POWER OUTWEIGHS DISMISSALS WSJ SEPT 8 1993 9309080095 930908 IN DEFENSE OF DERIVATIVES BY WENDY LEE GRAMM FUTURES AND OTHER DERIVATIVES WERE CHARACTERIZED AS PURELY SPECULATIVE INSTRUMENTS ALLOWING ONE TO BET ON THE DIRECTION A PRICE MAY TAKE CRITICS DIDN'T FIND MANY REDEEMING QUALITIES FOR DERIVATIVES THEN SO PROPOSALS WERE MADE TO RAISE THEIR COSTS REGULATE THEM MORE OR BAN THEM ALTOGETHER TODAY'S TUNE IS SOMEWHAT DIFFERENT THE FOCUS HAS SHIFTED TO SWAPS CONTRACTS BETWEEN TWO PARTIES TO EXCHANGE PAYMENT STREAMS SUCH AS FIXED FOR FLOATING RATE PAYMENTS IN INTERESTRATE SWAPS AND OTHER OVERTHECOUNTER DERIVATIVES HOWEVER THIS IS SIMPLY A VARIATION ON THE OLD REFRAIN THAT DERIVATIVES ARE SO COMPLEX AND RISKY THAT THEY MIGHT BRING THE WHOLE FINANCIAL SYSTEM TUMBLING DOWN AS IN THE PAST LISTENING TO THESE CRITICS RISKS DAMAGING A VIBRANT AND VALUABLE SECTOR OF THE US FINANCIAL MARKET THOSE WHO MISUNDERSTAND DERIVATIVES HAVE ALWAYS ARGUED THAT THEY ARE TOO RISKY BUT CRITICS OVERLOOK THE FACT THAT DERIVATIVES WERE DEVELOPED TO MANAGE THE RISKS THAT ALREADY EXIST IN THE BUSINESS WORLD TODAY BUSINESSES CAN HEDGE AGAINST FLUCTUATIONS IN REVENUES AND COSTS RESULTING FROM CHANGES IN EXCHANGE RATES INTEREST RATES AND COMMODITY PRICES BANKS USE DERIVATIVES TO MANAGE ASSETS AND LIABILITIES MORE EFFICIENTLY BENEFITING DEPOSITORS AND BORROWERS ALIKE INVESTMENT MANAGERS HAVE ACCESS TO PRODUCTS THAT ENHANCE THEIR PORTFOLIOS' PERFORMANCE AS FIRMS INCORPORATE DERIVATIVES INTO NEW CAPITALRAISING PRODUCTS WHEN ADDED TO FUEL CONTRACTS OR MORTGAGES DERIVATIVES CAN EVEN HELP FAMILIES PROTECT THEMSELVES AGAINST SPIKES IN HOME HEATING OIL AND NATURAL GAS PRICES AND OBTAIN RATE CAPS ON THEIR MORTGAGES AND OF COURSE THE AGRICULTURAL COMMUNITY HAS USED DERIVATIVES SUCCESSFULLY FOR OVER A CENTURY TO PROTECT AGAINST UNEXPECTED PRICE FLUCTUATIONS DERIVATIVES' RAPID GROWTH AND ACCEPTANCE BY FIRMS AND INDIVIDUALS AROUND THE WORLD ARE EVIDENCE OF THEIR USEFULNESS BUT IT IS JUST THIS RAPID GROWTH THAT GIVES REGULATORS AND CONGRESS THE JITTERS THEIR FIRST CONCERN IS THE COMPLEXITY OF MANY OF THESE NEW PRODUCTS AND THE SUPPOSED INABILITY OF SENIOR MANAGERS TO ESTABLISH ADEQUATE INTERNAL CONTROLS THEY FEAR FIRMS MAY ERR IN THEIR EVALUATION OF COUNTERPARTY RISK THE EXPOSURE TO LOSS IF THE OTHER SIDE DEFAULTS ON ITS CONTRACTUAL OBLIGATION OR IN THE VALUATION OF VARIOUS FANCY INSTRUMENTS ANOTHER CONCERN OF REGULATORS IS SYSTEMIC RISK WHEN A MAJOR PARTICIPANT DEFAULTS OR THERE IS A SHOCK TO THE SYSTEM THAT THROUGH A DOMINO EFFECT CAUSES EXTREME DIFFICULTIES FOR COUNTERPARTIES AND PERHAPS THE WHOLE FINANCIAL SYSTEM SOME ARGUE THAT FIRMS DO NOT INVEST SUFFICIENT RESOURCES TO CONTROL RISKS ADEQUATELY BECAUSE THEY UNDERVALUE THE COST TO SOCIETY OF A SYSTEMWIDE COLLAPSE CONCERN HAS ALSO BEEN EXPRESSED OVER THE APPARENT LACK OF REGULATION WHETHER THERE IS SUFFICIENT TRANSPARENCY IN THESE MARKETS AND ADEQUATE DISCLOSURE TO REGULATORS ABOUT THE DERIVATIVES ACTIVITIES OF FIRMS AND WHETHER THESE FINANCIAL CONTRACTS SHOULD BE INDIVIDUALLY APPROVED OR REGULATED IT IS NOT CLEAR WHETHER SUCH CONCERNS REPRESENT CONSTRUCTIVE HARD QUESTIONING OR JUST NEW AND IMPROVED VERSIONS OF DERIVATIVESBASHING CONSIDER THE FIRST PROBLEM COMPLEXITY AND DIFFICULTY IN ASSESSING RISK TODAY CONTINGENT CLAIM METHODOLOGIES SIMULATION MODELS AND OTHER TECHNIQUES ARE INCREASINGLY ADEPT AT PRICING INSTRUMENTS AND ASSESSING CREDIT RISK THEY ARE NO LONGER UNDERSTOOD AND USED ONLY BY ROCKET SCIENTISTS NOT SURPRISINGLY INTERNAL CONTROL SYSTEMS ARE EVOLVING TO ACCOMMODATE THE INCREASED ACTIVITY BETTER RISK ASSESSMENT REDUCES THE POTENTIAL FOR PROBLEMS THAT COULD LEAD TO DEFAULT AND SUBSEQUENT SYSTEMIC EFFECTS BUT THERE ARE OTHER REASONS THE CONCERN OVER SYSTEMIC RISK MAY BE OVERSTATED FIRST THE SIZE OF THESE MARKETS IS OFTEN EXAGGERATED THIS IS A 5 TRILLION MARKET THE CHICK LITTLES EXCLAIM WHILE IGNORING THAT THE REAL PAYMENT OBLIGATIONS ARE A TINY FRACTION OF THAT AMOUNT COMPARED WITH THE FOREIGN EXCHANGE MARKET FOR EXAMPLE THE SWAP MARKET IS MINUSCULE WHILE DAILY GLOBAL NET TURNOVER IN FOREIGN EXCHANGE MARKETS EXCEEDS 800 BILLION THE DAILY CASH FLOW FOR INTEREST RATE AND CURRENCY SWAPS IS ABOUT 26 BILLION SECOND WE HAVE HAD EXPERIENCE WITH SIGNIFICANT DEFAULTS AND SHOCKS TO THE SYSTEM DREXEL BURNHAM LAMBERT OLYMPIA & YORK AND THE BANK OF NEW ENGLAND ARE EXAMPLES OF LARGE FIRMS WHOSE DERIVATIVES PORTFOLIOS WERE TRANSFERRED OR LIQUIDATED SUCCESSFULLY FOLLOWING THE FAILURE OF THOSE FIRMS FROM OTHER CAUSES DURING THE CRASH OF 1987 THE PERSIAN GULF WAR AND THE EXCHANGERATEMECHANISM CRISIS WE SAW DRAMATIC PRICE SHOCKS THAT COULD HAVE UNDONE THE SYSTEM EVEN THE HAMMERSMITH AND FULHAM CASE IN ENGLAND WHICH IN ESSENCE INVALIDATED NUMEROUS SWAP CONTRACTS DID NOT OVERWHELM THE SYSTEM NOT ONLY DID THE SYSTEM SURVIVE BUT MARKET PARTICIPANTS AND REGULATORS LEARNED FROM EACH EPISODE AND FINETUNED SYSTEMS ACCORDINGLY FINALLY SOME ARGUE THAT THE OVERTHECOUNTER MARKET FOR DERIVATIVES IS UNREGULATED THIS IS JUST NOT SO OF THE TOP 50 ENTITIES INVOLVED IN INTERESTRATE SWAPS FOR EXAMPLE MORE THAN 90 ARE BANKS AND LARGE FINANCIAL FIRMS ALREADY REGULATED FURTHERMORE THERE IS NO REAL NEED TO REGULATE ALL CONTRACTS IN THE PRIVATE SECTOR ESPECIALLY THOSE BETWEEN LARGE AND SOPHISTICATED FIRMS BESIDES WE CANNOT AFFORD THE COST OF TRYING TO PREVENT EVERY MISTAKE OR ERROR IN BUSINESS JUDGMENT TODAY'S ARGUMENTS ABOUT THE RISK OF DERIVATIVES IN GENERAL AND SWAPS IN PARTICULAR ARE NO MORE COMPELLING THAN THE ARGUMENTS OF YESTERDAY INDEED GOVERNMENT MAY WELL POSE THE GREATEST RISK TO THIS MARKET THE ONLY REASONS I CAN THINK OF WHY FIRMS MIGHT UNDERINVEST TO CONTROL RISK ARE DUE TO FAILURES IN GOVERNMENT FIRMS MAY BELIEVE THAT GOVERNMENT WILL NOT LET THEM FAIL UNDER A TOO BIG TO FAIL POLICY THAT THEY MAY FREERIDE ON THE GOVERNMENT'S RESOURCES SPENT EXAMINING OR SUPERVISING OTHER MARKET PARTICIPANTS OR THAT THE BANKRUPTCY CODE MAY NOT IMPOSE SUFFICIENT PENALTIES FOR FAILING BUT GOVERNMENT'S NEGATIVE ROLE GOES BEYOND THIS POLICY MAKERS AND THE COURTS CAN CREATE SUBSTANTIAL LEGAL AND REGULATORY UNCERTAINTY WITH THEIR STATEMENTS AND ACTIONS MARKETS CAN BE OVERREGULATED WHICH IMPOSES COSTS ON USERS THE DANGER OF OVERREGULATION IS THAT OVERSEAS COMPETITION IS JUST A PHONE CALL AWAY THE IRONY IS THAT IF OUR MARKETS GO OVERSEAS THE JOB BECOMES ONLY MORE DIFFICULT FOR US REGULATORS WHO NOW MUST DEAL WITH FIRMS HAVING MORE INTERNATIONAL COUNTERPARTIES OR WITH LARGE OVERSEAS SUBSIDIARIES WHERE MARKETS MAY BE LESS TRANSPARENT AND INFORMATION HARDER TO OBTAIN RECENTLY THE GROUP OF THIRTY A GLOBAL THINK TANK MADE UP OF FINANCIAL MARKET PARTICIPANTS INDUSTRIALISTS REGULATORS AND ACADEMICS PUBLISHED A REPORT EXPLAINING DERIVATIVES AND INDUSTRY PRACTICES IN MANAGING RISK THIS REPORT GOES A LONG WAY TOWARD INCREASING THE PUBLIC'S UNDERSTANDING AND MAKES MANY PRACTICAL RECOMMENDATIONS AIMED AT IMPROVING RISK MANAGEMENT PRACTICES THESE INCLUDE INVOLVING SENIOR MANAGEMENT IN DEFINING AND REVIEWING ITS FIRM'S USE OF DERIVATIVES EVALUATING THE MARKET RISK OF DERIVATIVES POSITIONS DAILY PERFORMING SIMULATIONS TO DETERMINE HOW PORTFOLIOS WOULD BEHAVE IF PRICES MOVE SIGNIFICANTLY AND ESTABLISHING AN INDEPENDENT CREDITRISK MANAGEMENT FUNCTION WITHIN EACH FIRM I HOPE THESE RECOMMENDATIONS WILL BE VIEWED AS SUGGESTIONS BUT WILL NOT BECOME CODIFIED BY REGULATORS OR INDUSTRY GROUPS IT IS IMPORTANT THAT THERE BE A CONTINUING EVOLUTION OF PRACTICES AND PRINCIPLES TO MEET EVERCHANGING MARKETS AND PRODUCTS I ALSO HOPE REGULATORS REMEDY GOVERNMENT POLICES THAT INCREASE RISK THEY SHOULD REDUCE REGULATORY UNCERTAINTY BY RESPONDING RAPIDLY TO QUESTIONS AND PETITIONS FROM MARKET PARTICIPANTS ABOUT INNOVATIVE PRODUCTS PROCEDURES AND SYSTEMS THEY SHOULD ELIMINATE UNNECESSARY COSTS AND IMPEDIMENTS TO PARTICIPATING IN THIS MARKET ESPECIALLY FOR HIGHLY REGULATED AND SOPHISTICATED FIRMS LIKE BANKS FINANCIAL INSTITUTIONS EXCHANGES AND PENSION AND OTHER MANAGED FUNDS MOST IMPORTANT IF ANOTHER MAJOR DEFAULT OR MARKET SHOCK OCCURS WE MUST ALL RESIST THE URGE TO FIND SCAPEGOATS OR TO OVERREGULATE WHAT WE JUST DO NOT UNDERSTAND MS GRAMM WAS CHAIRMAN OF THE COMMODITY FUTURES TRADING COMMISSION FROM 1988 TO 1993 9309080094 930908 CLINTON MOVES TO STREAMLINE GOVERNMENT UNIONS BELIEVE EXPANSION OF EMPLOYEES' POWER OUTWEIGHS DISMISSALS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHY ARE THE UNIONS SO HAPPY UNDER THE WHITE HOUSE'S PLAN TO REINVENT GOVERNMENT 252000 FEDERAL JOBS WOULD BE CUT WITHIN FIVE YEARS EQUAL TO CLOSING DOWN GENERAL ELECTRIC CO THE COUNTRY'S FIFTHLARGEST CORPORATE EMPLOYER MOREOVER THE PROCESS TO FIRE FEDERAL WORKERS WOULD BE STREAMLINED AND IT WOULD BE EASIER TO SIDESTEP FEDERAL EMPLOYEES TO CONTRACT OUT GOVERNMENT WORK BUT THE UNIONS WHOSE OPPOSITION HELPED TORPEDO GOVERNMENTREFORM EFFORTS IN THE PAST SUDDENLY ARE ENVISIONING A HUGE EXPANSION OF WORKER POWER ORGANIZED LABOR HAS DECIDED THAT FACED WITH A CLEAR NATIONAL CALL TO SPEND LESS ON GOVERNMENT THEY CAN GET MORE MUSCLE IN THE WORKPLACE IN EXCHANGE FOR LESS PROTECTION FOR THE WORSTPERFORMING WORKERS MOREOVER THE PLAN OFFERS A NEW PAY SYSTEM THAT WOULD REWARD THE BEST WORKERS WITH A CHANCE AT BIGGER PAYCHECKS SIMPLY PUT LABOR IS AT THE CENTER OF THE LARGEST EXPERIMENT OF CORPORATESTYLE TOTAL QUALITY MANAGEMENT IN HISTORY FEDERAL UNIONS AND THEIR MEMBER WORKERS WILL ACQUIRE CLOUT OVER HOW WHERE AND WHEN WORK IS DONE THE RESTRUCTURING TURNS THE PRESENT HIERARCHY ON ITS HEAD DECLARED ROBERT TOBIAS PRESIDENT OF THE NATIONAL TREASURY EMPLOYEES UNION AT THE CORE OF THE RESTRUCTURING WILL BE THE NATIONAL PARTNERSHIP COUNCIL TO BE SET UP BY EXECUTIVE ORDER NEXT MONTH THE COUNCIL WILL BE A SORT OF BOARD OF DIRECTORS THAT WILL INCLUDE THE HEADS OF THE FEDERAL AGENCIES AND WOULD BY CHARTER ENCOURAGE LABORMANAGEMENT COOPERATION AND A HIGHPERFORMANCE WORKPLACE THE THREE BIGGEST FEDERAL UNIONS AND THE AFLCIO WILL GAIN SEATS ON THAT COUNCIL SIMILAR PANELS COMPLETE WITH UNION MEMBERS WILL BE SET UP AT EACH AGENCY GIVING WORKERS A VOICE ON WHICH FACILITIES TO CLOSE HOW TO INCREASE PRODUCTIVITY AND HOW TO BETTER HANDLE THE WORK THE GOVERNMENT TASK FORCE WOOED UNION OFFICIALS IN AN EFFORT TO KEEP THEM HAPPY WITH THE PLAN ALTHOUGH ORGANIZED LABOR DIDN'T GET EVERYTHING IT WANTED SPECIFICALLY IT DIDN'T GET AN ORDER FROM THE GOVERNMENT TO FORCE MORE EMPLOYEES TO PAY UNION DUES UNION OFFICIALS EVEN ARE QUOTED IN THE REINVENTING GOVERNMENT REPORT FOR THEIR VIEWS ON WORKPLACE COOPERATION IT'S A GAMBLE FOR THE CLINTON ADMINISTRATION MANY OF THE 23 MILLION FEDERAL WORKERS AND SUPERVISORS ARE CONSIDERED ENTRENCHED IN A IT'S NOT MY JOB OR I'LL GET TO IT WHENEVER CIVILSERVICE MINDSET THE WHITE HOUSE HOPES THAT EMPOWERMENT WILL GALVANIZE THESE WORKERS INTO HIGHLY PRODUCTIVE THINKING ACTIVE EMPLOYEES A LOT OF THESE THINGS WE HAVE BEEN TALKING ABOUT FOR 25 YEARS SAID JOHN STURDIVANT PRESIDENT OF THE AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES THE LARGEST FEDERAL UNION WITH 700000 US WORKERS THEY'VE LISTENED TO EVERYONE ELSE MAYBE THEY SHOULD TRY LISTENING TO THE WORKERS MR TOBIAS FOR EXAMPLE RECALLED A CINCINNATI WORKER AT THE INTERNAL REVENUE SERVICE WHO WAS SO EXCITED OVER A MODEL PROGRAM TO PROVIDE WORKERS WITH MORE AUTHORITY THAT AT A TRAINING SESSION SHE SAID THIS IS THE FIRST TIME IN 10 YEARS ANYONE HAS CARED ABOUT WHETHER I CAME TO WORK AND IT'S THE FIRST TIME IN 10 YEARS I THOUGHT ABOUT MY JOB OUTSIDE OF WORK STILL THE JOB CUTS LOOM THE UNIONS EXPECT MANY OF THE 252000 JOBS TO COME FROM A MIDDLEMANAGEMENT SYSTEM THAT THEY SEE AS BLOATED UNION OFFICIALS CONTEND FOR EXAMPLE THAT 1 IN EVERY 5 FEDERAL WORKERS IS A SUPERVISOR THAT COMPARES WITH ROUGHLY 1 IN 15 FOR PRIVATE INDUSTRY WHILE MUCH OF THE DECREASE WOULD BE DONE THROUGH ATTRITION AND EARLYRETIREMENT BUYOUTS THE UNIONS ACKNOWLEDGE THAT SOME WORKERS WOULD FACE THE AXE WE RECOGNIZE REALITIES THAT THERE IS A SEVERE BUDGET PROBLEM AND THERE WILL BE LOSSES IN JOBS SAID ROBERT KEENER PRESIDENT OF THE NATIONAL FEDERATION OF FEDERAL EMPLOYEES ON THE FLIP SIDE HOWEVER FEDERAL UNIONS FINALLY WOULD GAIN THE OPPORTUNITY TO HELP SET PAY SCALES UNDER VICE PRESIDENT AL GORE'S PLAN THE RIGID SENIORITYBASED PAY SYSTEM WOULD LIKELY BE REPLACED BY BROADBANDING WHICH MEANS THE SCALES FOR JOB CLASSIFICATIONS WOULD BE WIDENED BROADBANDING COULD ALLOW THE BEST WORKERS TO GET HIGHER PAY THAN THEIR COLLEAGUES UNION OFFICIALS ENVISION PAYSHARING ARRANGEMENTS MUCH LIKE THOSE IN PRIVATE INDUSTRY ALLOWING WORKERS TO DIVIDE A BONUS POOL FOR PRODUCTIVITY GAINS THAT'S THE TYPE OF EFFICIENCY THAT HAS WORKERS IN CORPORATE AMERICA EXCITED AND GOVERNMENT AND UNION OFFICIALS WANT TO BRING THAT PASSION TO THE FEDERAL WORKER OUR AVERAGE MEMBER WILL MAKE MORE MONEY PREDICTED MR KEENER NOT ALL FEDERAL EMPLOYEE GROUPS ARE AS HAPPY AS THE UNIONS THE FEDERAL MANAGERS ASSOCIATION WHICH REPRESENTS NEARLY 20000 FEDERAL SUPERVISORS CONTENDS THAT MANAGERS NEED TO BE MORE INVOLVED IN DETERMINING HOW THE NEW SYSTEM WOULD WORK OFFICIALS THERE SAID THE PLAN TO HAVE A 1TO15 RATIO OF MANAGERS TO WORKERS MAY BE SHORTSIGHTED ALSO THE SENIOR EXECUTIVES ASSOCIATION WHICH REPRESENTS THE FEDERAL CAREER EXECUTIVES SAID IT WAS DEEPLY DISAPPOINTED THAT THE SIGNIFICANT RECOMMENDATIONS MADE BY THE GROUP WERE JUNKED A GOLDEN OPPORTUNITY IS BEING LOST THE GROUP SAID SEE RELATED ARTICLE PLAN LISTS 800 SUGGESTIONS TO IMPROVE EFFICIENCY INSTILL PUBLIC CONFIDENCE WSJ SEPT 8 1993 9309080093 930908 INTERNATIONAL ITALY'S IRI PLANS TO SELL STAKES IN TWO BANKS VIA PUBLIC OFFERINGS MILAN ITALY'S GIANT STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE CHANGED ITS PRIVATIZATION PLANS FOR TWO STATE BANKS IRI SAID IT WILL OFFER ITS STAKES IN CREDITO ITALIANO AND BANCA COMMERCIALE ITALIANA THROUGH PUBLIC STOCK OFFERINGS IN ITALY AND ABROAD THE ANNOUNCEMENT REVERSES IRI'S PLANS MADE LATE LAST YEAR TO SELL ITS 67 STAKE IN CREDIO ITALIANO TO A SINGLE BUYER POTENTIAL BUYERS REPORTEDLY BALKED AT A STEEP ASKING PRICE FOR CREDITO ITALIANO AND IRI'S INSISTANCE THEY BUY THE ENTIRE STAKE IRI PREVIOUSLY SAID IT WOULD SELL BANCA COMMERCIALE ITALIANA AFTER A BUYER WAS FOUND FOR CREDITO A SPOKESMAN SAID IT IS TOO EARLY TO SAY WHICH FOREIGN MARKETS WILL BE TARGETED OR IF MARKET LISTINGS WILL BE SOUGHT TIMING WILL DEPEND ON TECHNICAL REQUIREMENTS AND THE RECEPTION OF THE MARKETS HE SAID 9309080092 930908 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 308 60 TO 119 DAYS 315 120 TO 179 DAYS 317 180 TO 239 DAYS 322 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 312 60 DAYS 313 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 258 TWO MONTHS 260 THREE MONTHS 274 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 301 ONE MONTH 304 THREE MONTHS 314 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 311 120 DAYS 310 150 DAYS 310 180 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 3/8 3 1/4 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 651 60 DAYS 658 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 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309080090 930908 SMALL STOCK FOCUS PRICES SLIP AS RETREAT BY TRADERS ENDS FIVEDAY RUN OF RECORDHIGH CLOSINGS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FIVEDAY STREAK OF RECORDS FOR SMALL STOCKS FINALLY ENDED THE RUSSELL 2000 INDEX A MEASURE OF THE SMALLEST ISSUES ON THE NASDAQ MARKET AND NEW YORK AND AMERICAN STOCK EXCHANGES FELL 255 OR 103 TO 24612 THE INDEX DROPPED FROM AN ALLTIME HIGH OF 24867 ON FRIDAY THE MARKET JUST HAD A NORMAL BACKOFF SAID MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER THERE ARE NO SIGNS OF STRUCTURAL WEAKNESS AND THE LOWER INTEREST RATES ARE GOING TO CONTINUE TO STRENGTHEN THE SMALL STOCKS SMALL COMPANIES CAN LEAD IN TERMS OF EARNINGS GROWTH AND THAT PART OF THE MARKET WILL CONTINUE TO SEE NEW HIGHS THE RETREAT NOTWITHSTANDING STOCKS WITH GOOD NEWS POSTED STRONG GAINS TOTAL PHARMACEUTICAL CARE SURGED 8 OR 60 TO 21 1/4 ABBEY HEALTHCARE GROUP SIGNED A DEFINITIVE AGREEMENT TO PURCHASE ALL OF TOTAL PHARMACEUTICAL'S OUTSTANDING STOCK FOR 19 A SHARE IN CASH AND 4 A SHARE IN ABBEY COMMON STOCK ABBEY SLID 3/4 TO 22 1/8 BASED ON THE SEPT 3 CLOSING PRICE OF 22 7/8 FOR ABBEY TOTAL PHARMACEUTICAL SHAREHOLDERS WOULD RECEIVE 0175 SHARES OF ABBEY STOCK FOR EACH FULL SHARE THE TRANSACTION IS VALUED AT ABOUT 197 MILLION ABBEY SAID THE COSTA MESA CALIF COMPANY PROVIDES NATIONAL HOME HEALTH CARE SERVICES AND PRODUCTS TOTAL PHARMACEUTICAL BASED IN TORRANCE CALIF PROVIDES HOME INFUSION THERAPY THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE FOURTH QUARTER GOLD STANDARD MORE THAN DOUBLED RISING 2 1/16 TO 3 3/8 ON MORE THAN ONE MILLION SHARES MORE THAN 40 TIMES ITS NORMAL VOLUME OF 27637 AS REPORTED BY THE WALL STREET JOURNAL YESTERDAY A UTAH STATE JURY FOUND THAT TWO TEXACO INC UNITS SHOULD PAY THE TINY GOLD MINING COMPANY 4042 MILLION IN A DISPUTE OVER OWNERSHIP OF A GOLD MINE THAT THE OIL COMPANY BRIEFLY OWNED THE DECISION BECAME KNOWN LATE FRIDAY AFTER TRADING HAD ENDED AN ATTORNEY FOR GOLD STANDARD SAID SEVERAL STEPS REMAIN BEFORE ANY RULING BECOMES FINAL BUT GOLD STANDARD WAS THE EXCEPTION IN THE GOLD SECTOR GOLD FUTURES PRICES PLUNGED YESTERDAY WITH GOLD FOR DECEMBER DELIVERY FALLING 1460 TO 35250 GOLD STOCKS TOOK A DRUBBING BATTLE MOUNTAIN GOLD NYSE DROPPED 1 TO 7 7/8 THE HOUSTON COMPANY MINES AND PROCESSES GOLD AND SILVER AND IS INVOLVED IN EXPLORATION OF PRECIOUS METALS PEGASUS GOLD AMEX TUMBLED 2 7/8 TO 18 1/4 THE SPOKANE WASH COMPANY MINES GOLD SILVER AND OTHER PRECIOUS METALS SILVERADO MINES SLID 1/4 TO 2 9/16 SILVERADO IS BASED IN VANCOUVER BRITISH COLUMBIA HECLA MINING NYSE TUMBLED 1 3/4 TO 10 5/8 AND SUNSHINE MINING FELL 3/8 TO 2 1/8 ROYAL OAK MINES AMEX FELL 11/16 TO 3 9/16 BE AEROSPACE DROPPED 2 TO 12 3/4 PAINEWEBBER DOWNGRADED THE STOCK TO NEUTRAL FROM ATTRACTIVE CITING THE 60 TO 70 RISE IN THE ISSUE'S PRICE DURING THE LAST SIX MONTHS PAINEWEBBER ANALYST JEFFREY SPRAGUE ALSO CUT HIS EARNINGS ESTIMATE FOR FISCAL 1994 TO 90 CENTS A SHARE FROM 1 A SHARE FOR THE FISCAL YEAR ENDED FEBRUARY 1993 THE IRVINE CALIF COMPANY REPORTED EARNINGS FROM OPERATIONS OF 103 A SHARE BE AEROSPACE MANUFACTURES PRODUCTS FOR COMMERCIAL AIRCRAFT CABIN INTERIORS INCLUDING SEATING GALLEY SYSTEMS AND INFLIGHT ENTERTAINMENT MDL INFORMATION SYSTEMS DROPPED 2 1/4 TO 9 1/4 THE SAN LEANDRO CALIF COMPANY SAID IT HAD REVENUE OF 102 MILLION IN THE FISCAL FIRST QUARTER ENDED JUNE 30 COMPARED WITH 114 MILLION A YEAR EARLIER MDL INFORMATION SUPPLIES CHEMICALINFORMATION MANAGEMENT SOFTWARE CHEMICALINFORMATION DATABASES AND RELATED SERVICES TO THE PHARMACEUTICAL AND CHEMICAL INDUSTRIES IT PRICED 82 MILLION SHARES AT 11 IN JULY IN AN INITIAL PUBLIC OFFERING FERROFLUIDICS TOPPLED 4 TO 7 1/4 THE JOURNAL REPORTED YESTERDAY THAT THE NASHUA NH COMPANY UNDER INVESTIGATION BY REGULATORS FOR ALLEGEDLY VIOLATING SECURITIES LAW SAID IT OVERSTATED RESULTS IN EACH OF ITS THREE FISCAL 1993 QUARTERS ENDED MARCH 31 THE COMPANY SAID IT PLANS TO RESTATE ABOUT 2 MILLION IN OPERATING PROFIT AND 11 MILLION IN REVENUE FOR ALL THREE QUARTERS CAUSING AN ADVERSE EFFECT ON RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30 AMBAR ROSE 1 TO 4 1/4 THE LAFAYETTE LA COMPANY REPORTED FLAT EARNINGS FOR ITS FISCAL FOURTH QUARTER ENDED JUNE 30 OF FIVE CENTS A SHARE AMBAR BLENDS AND DESIGNS FLUIDS AND CHEMICALS AND PROVIDES ENVIRONMENTAL SERVICES TO MAJOR OIL AND GAS OPERATORS 9309080089 930908 MARKETING & MEDIA TIME WARNER FINDS DIARY OF JACK THE RIPPER A HOAX NEW YORK WARNER BOOKS SAID IT WON'T PUBLISH THE DIARY OF JACK THE RIPPER BECAUSE INVESTIGATORS IT HIRED SAY THE BOOK IS A HOAX LAURENCE KIRSHBAUM PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TIME WARNER INC UNIT SAID THE PUBLISHER WON'T LOSE MONEY BECAUSE ACCEPTANCE OF THE MANUSCRIPT WAS ALWAYS CONTINGENT UPON OUR INDEPENDENT IDENTIFICATION OF THE DIARY'S AUTHENTICITY MR KIRSHBAUM SAID HE IS DISAPPOINTED IN THE APPRAISAL BECAUSE BOOKSTORES HAD ALREADY ORDERED MORE THAN 200000 COPIES IN ADVANCE AND WE ANTICIPATED A MAJOR BESTSELLER THE ONLY COST TO WARNER APPEARS TO HAVE BEEN THAT OF THE EXPERTS WHO WERE LED BY KENNETH RENDELL A WELLKNOWN DEALER IN HISTORICAL DOCUMENTS ALL OF OUR EXAMINATIONS PROVE THIS IS A FORGERY A HOAX SAID MR RENDELL FIRST THE DIARY IDENTIFIES A MAN NAMED JAMES MAYBRICK AS JACK THE RIPPER BUT A COMPARISON TO MAYBRICK'S SIGNATURE ON HIS WILL CLEARLY SHOWS THIS WASN'T WRITTEN BY HIM NONETHELESS BRITISH PUBLISHER SMITH GRYPHON LTD FROM WHICH WARNER BOUGHT US RIGHTS MAY PUBLISH THE BOOK STILL SAID MR KIRSHBAUM I THINK THEY STILL BELIEVE IT'S REAL HE SAID AND THERE IS SUCH A FASCINATION WITH JACK THE RIPPER IN ENGLAND THE BRITISH PUBLISHER COULDN'T BE REACHED FOR COMMENT YESTERDAY THE DIARY WAS TO BE PUBLISHED WITH DOCUMENTATION BY BRITISH EXPERTS PROVING IT IS GENUINE TO TAKE ADVANTAGE OF RIPPERMANIA THE UK PUBLISHER MAY ELECT TO TACK ON THE OPINION OF WARNER'S EXPERTS AND LEAVE IT TO THE READERS TO DECIDE 9309080088 930908 INTERNATIONAL DUTCH CONSUMER CREDIT DECLINES AMSTERDAM IN THE FIRST HALF CONSUMERS IN THE NETHERLANDS BORROWED 29 LESS THAN IN THE YEAREARLIER PERIOD WITH THE BULK OF THE DECLINE SHOWING UP IN THE RECESSIONBOUND FIRST QUARTER ACCORDING TO FIGURES FROM THE CENTRAL BUREAU FOR STATISTICS BASED IN THE HAGUE DUTCH CONSUMERS TOOK OUT 498 BILLION GUILDERS 273 BILLION IN NEW LOANS IN THE FIRST SIX MONTHS DOWN FROM A YEAREARLIER 513 BILLION GUILDERS FOR THE FIRST QUARTER NEW LOANS TO CONSUMERS WERE DOWN 46 THE BUREAU SAID THE SECONDQUARTER DROP WAS 11 THE DECLINE IN NEW CONSUMER CREDIT FOLLOWS TWO CONSECUTIVE YEARS OF RISES THE STATISTICS BUREAU ATTRIBUTED THE DROP PARTLY TO FALLING DEMAND FOR PASSENGER CARS 9309080087 930908 MANAGING YOUR CAREER BY JOANN S LUBLIN YOU LOSE A BID FOR A COVETED PROMOTION THIS ALL TOO COMMON SITUATION FEELS LIKE A HARD KICK BELOW THE BELT NOTHING LEFT TO DO BUT RESIGN RIGHT BUT QUITTING ISN'T YOUR ONLY OPTION IN FACT YOU MAY BE ABLE TO SQUEEZE LEMONADE OUT OF THIS LEMON CAREER COUNSELORS SAY THEIR ADVICE MAKE MOVES THAT TURN YOUR SETBACK INTO A STEP FORWARD AT ONE BIG TECHNICALPRODUCTS MAKER A SALES MANAGER REJECTED FOR A PROMOTION IMPROVED SOME SKILLS AND LANDED EXACTLY THE SAME HIGHERLEVEL JOB HE PREVIOUSLY HAD FAILED TO GET TO DO THE SAME ADVISERS SAY THAT YOU SHOULD FIRST HANDLE YOUR DISAPPOINTMENT WELL VENT YOUR RESENTMENT AT BEING REJECTED BUT BLOW UP AWAY FROM WORK CAREER STRATEGISTS URGE YOU MIGHT EVEN WRITE DOWN YOUR ANGRY FEELINGS AND LOCK THE DOCUMENT IN YOUR DESK A WEEK LATER IF YOU LOOK AT IT YOU WILL SAY MY GOD I WAS ABOUT TO TERMINATE MYSELF IN MY CAREER' SAYS ROBERT W BARNER VICE PRESIDENT OF MANAGEMENT CONSULTANTS PARRY CONSULTING SERVICES INC IN TEQUESTA FLA THEN SWALLOW YOUR PRIDE BY CONGRATULATING THE PROMOTION WINNER AND OFFERING SUPPORT YOUR HANDLING OF DISAPPOINTMENT MAY BE AN INADVERTENT KIND OF TEST THAT YOU ARE LOYAL TO THE ORGANIZATION AND DOING IT WELL COULD OPEN UP FURTHER PROMOTION OPPORTUNITIES SAYS HARRY LEVINSON A MANAGEMENT PSYCHOLOGIST AND CONSULTANT IN BELMONT MASS A LAWYER FOR ONE MAJOR MANUFACTURER OF CONSUMER PRODUCTS FAILED TO HANDLE THE SITUATION WELL WHEN HE WAS PASSED OVER FOR A CORPORATE COUNSEL'S JOB THE ATTORNEY DIDN'T REALIZE THAT HIS FIZZLED CANDIDACY HAD ACTUALLY HEIGHTENED HIS VISIBILITY AMONG SENIOR EXECUTIVES THE COMPANY STILL RESPECTED HIS QUALIFICATIONS AND INDICATED IT PLANNED TO PROMOTE HIM LATER HE DIDN'T BELIEVE THAT DR LEVINSON RECALLS IN HIS ANGRY DISAPPOINTMENT HE QUIT THE LAWYER TURNED DISAPPOINTMENT INTO DEFEAT HIS NEXT TWO JOBS WERE LESS IMPORTANT POSTS IT CAN BE EQUALLY IMPORTANT AND EQUALLY TOUGH TO SEEK FEEDBACK FROM YOUR BOSS OR THE INDIVIDUAL WHO TURNED YOU DOWN FOR A HIGHER POSITION LEARNING ABOUT THE VICTOR'S WINNING WAYS MAY HELP YOU MAP THE IMPROVEMENTS NEEDED TO LAND THE NEXT PROMOTION YOUR MANAGER MAY BE SOMEWHAT DEFENSIVE AND EXPECTING AN ANGRY CONFRONTATION NOTES MR BARNER THE CONSULTANT A NONTHREATENING APPROACH IS CRUCIAL STILL IT'S VERY HARD TO GET PEOPLE TO TELL YOU THE TRUTH SAYS ADELE SCHEELE A NEW YORK CAREER STRATEGIST YET NOT GETTING FEEDBACK CAN BE FATAL A MIDDLEAGED MANAGER AT A BIG MIDWEST MAKER OF INDUSTRIAL INSTRUMENTS FOUGHT HARD FOR A VICE PRESIDENT'S POST A LESSEXPERIENCED ARCHRIVAL GOT THE JOB THEREBY BECOMING HIS BOSS ILL WILL LINGERED BETWEEN THE PAIR THE MANAGER WAITED THREE MONTHS AND FINALLY SOUGHT ADVICE FROM THE DIVISION HEAD WHO HAD SPURNED HIM FOR THE SLOT THE DIVISION HEAD REFUSED TO EXPLAIN HIS DECISION OR GIVE OTHER FEEDBACK INSTEAD HE TOLD ME YOU HAVE TO WORK OUT THAT CONFLICT WITH THE BOSS YOURSELF' THE DEFEATED CANDIDATE REMEMBERS TWO YEARS LATER THE 54YEAROLD MANAGER WAS FIRED HE SAYS HIS IMMEDIATE BOSS ENGINEERED THE DISMISSAL IF YOU CAN GET FEEDBACK QUICKLY CAREER EXPERTS SUGGEST USING THAT COUNSEL TO BOLSTER YOUR CREDENTIALS ALTER YOUR MANAGEMENT STYLE OR CORRECT OTHER FLAWS PSYCHOLOGISTS SAY A TURNDOWN FOR A PROMOTION OFTEN REFLECTS AN INDIVIDUAL'S INADEQUATE ABILITY TO WORK WITH OTHERS DEFICIENCIES IN PEOPLE SKILLS SOMETIMES CAN BE REMEDIED THE SALES MANAGER WHO MADE A COMEBACK BLAMED OFFICE POLITICS WHEN HE WASN'T PICKED FOR AN EXECUTIVE POSITION BUT HIS PERFECTIONIST MANNER WAS THE REAL REASON FOR HIS FIRST REBUFF AFTER SEVERAL PROMOTIONS SUBORDINATES FEARED HIM PEERS FELT HE PUT THEM DOWN DR CINDY MARSH A PSYCHOLOGIST AND SENIOR VICE PRESIDENT OF PERSONNEL DECISIONS A MINNEAPOLIS CONSULTING FIRM THAT SPECIALIZES IN ASSESSMENT AND DEVELOPMENT COUNSELED THE MANAGER FOR ABOUT NINE MONTHS HE SUBSEQUENTLY LANDED HIS MISSED PROMOTION TWO YEARS AFTER THE INITIAL REJECTION EVEN AFTER THEY LOSE A PROMOTION MANY PEOPLE FIND IT HARD TO MODIFY THEIR FLAWS AT LEAST INITIALLY A BRIGHT AUDITOR AT A MEDIUMSIZE ACCOUNTING FIRM WAS PASSED OVER FOR A MANAGER'S JOB BECAUSE COLLEAGUES VIEWED HER AS BRISTLY AND ALOOF HER SUPERIORS SAID THEIR REFUSAL HAD NOTHING TO DO WITH HER SKILLS OR ABILITY RECOLLECTS SHIRLEY ZUSSMAN A NEW YORK PSYCHOTHERAPIST THE EXPLANATION PUZZLED THE AUDITOR AT FIRST I DON'T HAVE TO BE FRIENDLY TO BECOME A MANAGER SHE INSISTED TO DR ZUSSMAN SEVERAL YEARS LATER THE AUDITOR WAS FINALLY PROMOTED TO A SIMILAR MANAGERIAL POST AFTER SHE BEGAN TO UNDERSTAND THE EFFECT OF HER ALOOF BEHAVIOR THE THERAPIST SAYS THERE ARE SITUATIONS OF COURSE WHEN LOSING A PROMOTION CLEARLY CONVEYS A RED FLAG AND YOU MIGHT CONSIDER SWITCHING JOBS CAREER ADVISERS SAY PERHAPS SEVERAL ADVANCEMENT BIDS HAVE STALLED OR YOU CAN'T FIND AN ALTERNATE PATH IN A DIFFERENT AREA OF THE BUSINESS A MIDLEVEL EXECUTIVE AT ONE MAJOR CONSUMERGOODS PRODUCER UNSUCCESSFULLY SOUGHT A HIGHER TITLE THAT SHE SAYS SHOULD BE AVAILABLE TO ME THOUGH FRUSTRATED SHE HAS STAYED PUT BECAUSE HER BOSS AND OTHERS IN SENIOR MANAGEMENT KEEP TELLING HER YOU ARE THE GREATEST HANG IN THERE BECAUSE THE CORPORATE STRUCTURE IS CHANGING BUT THE EXECUTIVE IS UNSURE HOW LONG HER PATIENCE WILL LAST YOU NEED TO FIND A HOME IN YOUR ORGANIZATION OR GET OUT SHE EXPLAINS YOU HAVE TO BE LIKE PEGGY LEE DON'T STAY TOO LONG AT THE FAIR 9309080086 930908 LAW LEGAL BEAT SELFPOLICING CAN PAY OFF FOR COMPANIES BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL SOME BUSINESSES THAT KEEP AN EYE OUT FOR CORPORATE CRIME IN THEIR MIDST ARE BEING REWARDED BY STATE PROSECUTORS SELFPOLICING COMPANIES INCREASINGLY ARE RECEIVING MORE LENIENT TREATMENT DURING INVESTIGATIONS AND PROSECUTIONS THAN THEIR LESS VIGILANT COMPETITORS IN NORTH DAKOTA FOR EXAMPLE ENVIRONMENTAL PROSECUTORS PROMISE THEY WON'T USE INCRIMINATING INFORMATION AGAINST COMPANIES THAT COME FORWARD WITH IT THEMSELVES TO REAP SUCH REWARDS A COMPANY MUST HAVE WHAT IS KNOWN AS A COMPLIANCE PROGRAM INTERNAL AUDITS SURPRISE INSPECTIONS AND WHISTLEBLOWER HOTLINES ARE COMMON FEATURES OF SUCH PROGRAMS WHICH MANY CORPORATIONS USE TO ENSURE THAT THEY ARE ADHERING TO ENVIRONMENTAL ANTITRUST SECURITIES AND PUBLICHEALTH LAWS THE NOTION THAT CORPORATE COMPLIANCE PROGRAMS ACTUALLY COME IN HANDY WHEN COMPANIES ARE CAUGHT VIOLATING THE LAW IS A NEW ONE MANY CORPORATE LAWYERS BELIEVE THAT PROSECUTORS ONLY GIVE LIP SERVICE TO THESE PROGRAMS BUT INTERVIEWS WITH PROSECUTORS AND A SURVEY TO BE PUBLISHED LATER THIS MONTH IN CORPORATE CONDUCT QUARTERLY SHOW OTHERWISE THE REWARDS MAY BE GREATER THAN TRADITIONALLY THOUGHT SAID JEFFREY M KAPLAN A PARTNER AT THE NEW YORK LAW FIRM CHADBOURNE & PARKE WHO WORKED ON THE SURVEY FOR THE CAMDEN NJ ETHICS NEWSLETTER IT'S GOOD NEWS EVERYONE ENCOURAGES IT MR KAPLAN SAID IT'S LIKE MOTHERHOOD AND APPLE PIE BUT IT'S LIKE LOOK ARE YOU GOING TO ENCOURAGE IT WITH WORDS OR WITH DEEDS MORE AND MORE OFTEN IT'S DEEDS PROSECUTORS SAY FIFTEEN OF THE 16 ATTORNEY GENERAL OFFICES THAT RESPONDED TO THE SURVEY IN DETAIL AND OTHERS INTERVIEWED FOR THIS ARTICLE SAID BUSINESSES SCORE POINTS FORMALLY OR INFORMALLY FOR HAVING A COMPLIANCE PROGRAM WHEN IT COMES TO NEGOTIATIONS WITH STATE GOVERNMENTS A SURPRISING NUMBER OF PROSECUTORS GO EVEN FURTHER ILLINOIS PROSECUTORS SAY THAT THEY ARE WILLING TO AVOID CRIMINALLY PROSECUTING A COMPANY IF IT VOLUNTARILY REPORTS VIOLATIONS AND NEVADA STATE PROSECUTORS EXPRESSED WILLINGNESS TO DROP ADMINISTRATIVE OCCUPATIONAL HEALTHLAW SANCTIONS IF A COMPANY HAD A COMPLIANCE PROGRAM SUCH A COMPANY ALSO MIGHT BE PUNISHED LESS HARSHLY FOR SECURITIES VIOLATIONS THE PROSECUTORS SAID IN ADDITION PROSECUTORS IN SOME STATES URGE COMPANIES UNDER INVESTIGATION TO START COMPLIANCE PROGRAMS IN NEW YORK FOR INSTANCE A COMPLIANCE PROGRAM BECAME PART OF AN AGREEMENT BETWEEN THE ATTORNEY GENERAL'S OFFICE AND TWIN LAKE CHEMICAL CO A LOCKPORT NY MANUFACTURER THAT ACCIDENTALLY LEAKED TOXIC GAS IN DECEMBER THE INCIDENT SENT 44 PEOPLE TO THE HOSPITAL THE COMPANY WHICH ADMITTED NO WRONGDOING SETTLED WITH THE STATE BY HIRING AN ENVIRONMENTALCOMPLIANCE CONSULTANT AND PAYING MORE THAN 20000 IN PENALTIES IN RETURN TWIN LAKE WHICH COULDN'T BE REACHED FOR COMMENT WASN'T PROSECUTED FOR THE INCIDENT NEVERTHELESS NOT EVERYONE IS SOLD ON COMPLIANCE PROGRAMS LAWYERS FOR COMPANIES SAY THEY ARE RISKY BECAUSE A COMPANY MIGHT FERRET OUT SOMETHING THAT COULD BE USED AGAINST IT AN EFFECTIVE PROGRAM ALSO TAKES HEFTY AMOUNTS OF TIME WORK AND MONEY FOR INSTANCE ENVIRONMENTAL PROSECUTORS AT THE JUSTICE DEPARTMENT AND NEW JERSEY ATTORNEY GENERAL'S OFFICE SAY THEY EXPECT COMPLIANCE PROGRAMS TO BE WELLFUNDED AND PROVIDE SAFEGUARDS BEYOND WHAT IS REQUIRED BY LAW AND THEY EXPECT AUDITORS' SUGGESTIONS TO BE SWIFTLY IMPLEMENTED JEROME HOFFMAN HEAD OF THE ANTITRUST DIVISION OF THE FLORIDA ATTORNEY GENERAL'S OFFICE SAID HE SEES MANY COMPLIANCE PROGRAMS THAT ARE NOTHING MORE THAN A PIECE OF PAPER FOR INSTANCE HE SAID MOST DEFENDANTS IN THE SCHOOLMILK PRICEFIXING SCANDAL OF THE LATE 1980S HAD COMPLIANCE PROGRAMS THEY WERE NOT WORTH A PLUG NICKEL MR HOFFMAN SAID BORDEN INC NEW YORK WAS ONE OF THOSE DEFENDANTS IN 1990 IT PLEADED GUILTY TO THREE COUNTS OF CONSPIRING TO FIX BIDS FOR MILK PRODUCTS SOLD IN FLORIDA AND ELSEWHERE BORDEN WOUND UP PAYING 4 MILLION IN FINES RELATED TO THE CRIMINAL CHARGES AND 15 MILLION TO SETTLE POTENTIAL CIVIL CLAIMS BY THE US GOVERNMENT BEFORE THE INCIDENT BORDEN'S ANTITRUST COMPLIANCE PROGRAM CONSISTED OF A PERIODIC DON'TDOTHIS LECTURE TO MANAGERS BUT MR HOFFMAN SAID MARKETING STAFF WOULD UNDERCUT THE MESSAGE BY PRESSURING MANAGERS FOR MORE SALES NOW MARKETERS AND SALESPEOPLE ATTEND THE ANTITRUST SEMINAR TOO SAID BORDEN SPOKESMAN JAMES MCKINLEY WE'VE EXPANDED IT AND INCREASED THE FREQUENCY HE SAID IT'S REINFORCED AT SALES MEETINGS AND THAT SORT OF THING A 36YEAROLD COLORADO MAN SUED A RETIRED PRIEST FOR ALLEGEDLY INFECTING HIM WITH THE AIDS VIRUS DURING A SEXUAL RELATIONSHIP THAT LASTED 22 YEARS THOMAS PEREA OF BOULDER COLO SAID IN THE LAWSUIT THAT FATHER DELBERT BLONG OF LAKEWOOD COLO BEGAN SEXUALLY ABUSING HIM WHEN HE WAS ABOUT 15 THE SUIT FILED IN STATE COURT IN BOULDER CLAIMS FATHER BLONG CONTINUED TO HAVE SEX WITH MR PEREA AFTER GETTING HIV THE VIRUS THAT CAUSES AIDS WHILE THE CATHOLIC CHURCH HAS FACED A GROWING NUMBER OF CASES ALLEGING SEXUAL ABUSE BY PRIESTS MR PEREA'S SUIT IS BELIEVED TO BE THE FIRST ACCUSING A PRIEST OF TRANSMITTING HIV FATHER BLONG REACHED AT HIS HOME SAID HE COULDN'T COMMENT ON THE ALLEGATIONS HIS LAWYER FRANK HORVATH OF LITTLETON COLO COULDN'T BE REACHED FOR COMMENT FATHER BLONG RETIRED ABOUT TWO YEARS AGO THE SUIT ALSO NAMES AS A DEFENDANT BISHOP ARTHUR TAFOYA OF THE PUEBLO DIOCESE WHICH INCLUDED FATHER BLONG'S CHURCH THE SUIT SAID THE BISHOP EITHER KNEW OR SHOULD HAVE KNOWN THAT FATHER BLONG AND OTHER PRIESTS IN THE DIOCESE WERE HAVING SEX WITH CHILDREN AND YOUNG ADULTS BISHOP TAFOYA SAID IN A STATEMENT THAT HE WAS SHOCKED TO LEARN OF THE ALLEGATIONS AND THAT MY IMMEDIATE CONCERN IS FOR THE WELFARE OF THE ALLEGED VICTIM THOMAS PEREA HE SAID THAT AS A RETIRED PRIEST FATHER BLONG HAS NO DUTIES OR RESPONSIBILITIES WITH THE DIOCESE BUT THE BISHOP SAID HE HAD SUSPENDED FATHER BLONG'S PRIESTLY FACULTIES UNTIL FURTHER NOTICE AS PROVIDED IN THE DIOCESAN SEXUAL MISCONDUCT POLICY SCOTT LASHER AN ATTORNEY IN BOULDER FOR MR PEREA SAID HIS CLIENT WAS A TROUBLED TEENAGER WHO WAS TAKEN ADVANTAGE OF BY THE PRIEST HE LOOKED UP TO THIS MAN AS A MAN WHO LOVED HIM MR LASHER SAID IN A STATEMENT MR PEREA A SUBSTITUTE SCHOOL TEACHER SAID FATHER BLONG THIS YEAR TOLD HIM THAT HE WAS INFECTED WITH HIV AND THAT FOUR OF HIS SEXUAL PARTNERS EITHER HAD DIED OF AIDS OR CARRIED THE VIRUS THE SUIT SEEKS UNSPECIFIED MONETARY DAMAGES FOR SEXUAL ASSAULT AND NEGLIGENCE THE NUMBER OF LAWSCHOOL APPLICANTS DECLINED FOR THE SECOND YEAR IN A ROW APPLICANTS FOR THE 199293 SCHOOL YEAR FELL 59 TO ABOUT 86500 SAID THE LAW SCHOOL ADMISSION COUNCIL STILL THAT TOTAL IS THE FOURTH HIGHEST ON RECORD ACCORDING TO THE NEWTOWN PA ADMISSION GROUP COUNCIL OFFICIALS ATTRIBUTE THE DROP AS WELL AS A 22 DECLINE THE PREVIOUS YEAR TO THE TOUGH JOB MARKET FOR NEW LAWYERS APPLICATIONS TO SCHOOLS IN THE WEST WERE HARDEST HIT FALLING 10 THERE IS CLEARLY REGIONAL FLUCTUATION SAID COUNCIL PRESIDENT GEORGE L DAWSON IT MAY HAVE SOMETHING TO DO WITH REGIONAL ECONOMIES MINORITY APPLICATIONS OVERALL ROSE 28 THE NUMBER OF MEXICANAMERICAN APPLICANTS FOR INSTANCE INCREASED 76 AND THE NUMBER OF BLACK APPLICANTS ROSE 14 THE NUMBER OF NATIVE AMERICANS APPLYING TO LAW SCHOOLS HOWEVER DROPPED 66 JOINING JUSTICE MERRICK B GARLAND A PARTNER AT WASHINGTON LAW FIRM ARNOLD & PORTER HAS BEEN NAMED DEPUTY ASSISTANT ATTORNEY GENERAL FOR THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION MR GARLAND PREVIOUSLY WAS AN ASSISTANT US ATTORNEY IN THE DISTRICT OF COLUMBIA WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9309080085 930908 TECHNOLOGY & HEALTH COMPAQ AND IBM TO UNVEIL NEW PEN COMPUTERS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP HOPING TO REVIVE A SLUGGISH MARKET PLAN TO INTRODUCE NOTEBOOK COMPUTERS THAT CAN DOUBLE AS PEN WRITING PADS THE TWO COMPUTER COMPANIES WILL UNVEIL SOCALLED CONVERTIBLE COMPUTERS FEATURING SCREENS THAT CAN OPERATE AS USUAL NOTEBOOK DISPLAYS OR WHEN FLIPPED AS ELECTRONIC TABLETS CAPABLE OF RECOGNIZING HANDWRITTEN COMMANDS COMPAQ BASED IN HOUSTON WILL UNVEIL ITS MODEL MONDAY WHILE IBM IN ARMONK NY WILL ANNOUNCE ITS MACHINE TODAY THE ATTENTION COMES DESPITE A TEPID MARKET FOR PEN COMPUTERS SO FAR MOSTLY DUE TO SHAKY SOFTWARE THAT STILL HAS TROUBLE DECIPHERING WRITTEN WORDS ANALYSTS AT BIS STRATEGIC DECISIONS INC A NORWELL MASS CONSULTING COMPANY SAID ONLY ABOUT 50000 CONVERTIBLE PEN MACHINES WERE SOLD LAST YEAR MOST OF THEM BY GRID SYSTEMS CORP A FORMER TANDY CORP UNIT RECENTLY PURCHASED BY AST RESEARCH INC JEFFREY HENNING A BIS SENIOR ANALYST PREDICTS THAT ABOUT 120000 PEN MACHINES WILL BE SHIPPED THIS YEAR AND ABOUT 247000 IN 1994 THAT IS COMPARED WITH ABOUT 137 MILLION PERSONAL COMPUTERS EXPECTED TO BE SOLD BY THE END OF 1993 THE INTEREST IN THIS MARKET HAS ACTUALLY BEEN LOWER THAN WE THOUGHT MR HENNING SAID FROM A TECHNOLOGICAL STANDPOINT THE HANDWRITING RECOGNITION JUST HASN'T BEEN ACCURATE ENOUGH IBM'S CONVERTIBLE MACHINE CALLED THE THINKPAD 750P WILL BE ANNOUNCED TODAY ALONG WITH THREE OTHER ADDITIONS TO THE COMPANY'S SUCCESSFUL THINKPAD NOTEBOOK LINE OTHER NEW THINKPAD 750 MODELS WILL INCLUDE BUILTIN AUDIO CAPABILITIES AND A RELATED DESKTOP TERMINAL EQUIPPED WITH SPEAKERS AND AN OPTIONAL CDROM COMPAQ'S NEW CONVERTIBLE MACHINES WILL FEATURE A DETACHABLE KEYBOARD THAT CAN BE USED AS A STANDALONE WRITING PAD WHILE COMPAQ AND IBM OFFICIALS SAID RECENT IMPROVEMENTS IN PEN COMPUTER SOFTWARE SHOULD BE ENOUGH TO BOOST A STAGNANT MARKET ANALYSTS AREN'T YET CONVINCED THEY SEE CONVERTIBLE PEN COMPUTERS REMAINING A NICHE BUSINESS DESPITE THE EFFORTS OF THE TWO BIGGEST PC VENDORS IN THE WORLD IT'S NOT GOING TO BE A MAINSTREAM PRODUCT SAID GERRY PURDY A PORTABLE COMPUTING ANALYST AT DATAQUEST INC SAN JOSE CALIF THE PEN IS NOT THE CENTRAL FOCUS OF WHAT MOBILE AND PORTABLE COMPUTING IS ALL ABOUT 9309080084 930908 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB IN A WEEK WHEN PICTURES OF YASSER ARAFAT AND YITZHAK RABIN APPEAR SIDE BY SIDE ON THE COVER OF TIME MAGAZINE IT'S MIGHTY TEMPTING TO CONCLUDE THAT AMERICA CAN CLOSE THE FILE ON MIDDLE EAST PEACE AND MOVE ON NOT SO FAST THERE'S ONE SURE WAY AMERICA CAN FOUL UP THE BREATHTAKING NEW OPPORTUNITY FOR ARABISRAELI PEACE AMAZINGLY THOUGH THE SUBJECT IS BARELY BEING DISCUSSED THE SUBJECT IS EGYPT THE ROCK UPON WHICH ALL MIDDLE EAST PEACE IS BUILT IF EGYPT CRUMBLES IF IT SLIPS INTO ECONOMIC CHAOS AND ISLAMIC EXTREMISTS PREVAIL OVER PRESIDENT HOSNI MUBARAK YOU CAN SAY GOODBYE TO THE HISTORIC PEACE BETWEEN ISRAELIS AND PALESTINIANS YOU CAN ALSO BID FAREWELL TO ISRAELISYRIAN PEACE AND TO OVERALL STABILITY IN THE REGION EGYPT IS THE ACHILLES' HEEL OF THE PEACE PROCESS SAYS RICHARD HAASS WHO HANDLED MIDDLE EAST AFFAIRS IN THE BUSH WHITE HOUSE SO NOW IS THE TIME FOR A RENEWED AMERICAN COMMITMENT TO EGYPT THAT MEANS OFFERING MR MUBARAK CONTINUED ECONOMIC AID SOME FRANK PRIVATE POLITICAL ADVICE ON USING DEMOCRACY AND POLITICAL CARROTS AS WELL AS STICKS IN TAMING ISLAMIC EXTREMISTS AND SKILLFUL COORDINATION IN THE EXPLOSIVE TERRORISM CASE AGAINST SHEIK OMAR ABDELRAHMAN SHORING UP THE EGYPTIAN FRONT IN THIS WAY MAY BE THE BIGGEST CONTRIBUTION PRESIDENT CLINTON CAN MAKE TO THE PEACE PROCESS YET FEW IN THE US WANT TO HEAR THIS RIGHT NOW AMERICA IS SLIDING INTO A NEOISOLATIONIST MOOD AT THE MOMENT EVERYONE IN WASHINGTON WILLING TO SPEAK OUT FOR FOREIGN AID CAN MEET COMFORTABLY IN A STATE DEPARTMENT TELEPHONE BOOTH IRONICALLY THE FACT THAT THINGS ARE GOING SO WELL IN THE MIDDLE EAST ONLY MAKES IT EASIER TO FORGET ABOUT EGYPT THAT WOULD BE A BLUNDER OF HISTORIC PROPORTIONS THE US HAS BEEN INVESTING HEAVILY IN EGYPT AND ISRAEL FOR 15 YEARS WAITING FOR PRECISELY THIS MOMENT TO GET A BIG PAYBACK IN PEACE THE PAYBACK WILL COME SLOWLY OVER THE NEXT FIVE YEARS AS PALESTINIAN SELFRULE EVOLVES PROVIDED THE US STAYS IN THE GAME BUT WHY SOME WILL ASK SHOULD AMERICA EVEN CARE ABOUT PEACE NOW THAT THE US IS NO LONGER MANEUVERING AGAINST THE SOVIET UNION FOR ADVANTAGE IN THE MIDDLE EAST ONE REASON IS THE HISTORIC AND MORAL COMMITMENT THE US HAS MADE TO HELP ISRAEL LIVE IN PEACE AND SECURITY IF THAT ISN'T ENOUGH HERE IS THE CRASS REASON THE US TODAY IMPORTS TWO MILLION BARRELS OF ARAB OIL A DAY QUADRUPLE THE LEVEL OF EIGHT YEARS AGO ONE OUT OF EVERY EIGHT GALLONS OF GASOLINE AMERICANS PUT INTO THEIR CARS COMES FROM AN ARAB OIL WELL AS LONG AS AMERICANS LIVE ON IMPORTED OIL THEY HAVE TO CARE ABOUT MIDDLE EAST PEACE AND WHAT HAPPENS TO THE POLITICS OF PEACE IF EGYPT LOSES ITS FOOTING EGYPT ALONE IS A THIRD OF THE ARAB WORLD AND CAIRO HAS ALWAYS BEEN THE CULTURAL AND POLITICAL NERVE CENTER FOR ARABS WHAT HAPPENS IN CAIRO INSTANTLY REVERBERATES FROM MUSCAT TO MARRAKECH MAKING EGYPT THE ONE NATION THAT CAN SHIFT THE REGION'S BALANCE OF POWER IF PRESIDENT MUBARAK WERE TO FALL TO HIS EXTREMIST ENEMIES THAT WOULD INSTANTLY SPOOK ALL WOULDBE ARAB PEACEMAKERS BUT THE REVERBERATIONS WOULDN'T BE LIMITED TO THE ARAB WORLD IF THERE'S DISARRAY OR IF MUBARAK FALLS IT WILL STRENGTHEN THE HAND OF THOSE IN ISRAEL WHO ARGUE THAT YOU CAN'T MAKE PEACE WITH NONDEMOCRATIC ARAB REGIMES THAT THE POTENTIAL FOR DRAMATIC POLITICAL SHIFTS IS TOO GREAT TO ALLOW ISRAEL TO GIVE UP SOMETHING TANGIBLE TERRITORY FOR SOMETHING INTANGIBLE PEACE SAYS MR HAASS EGYPT CLEARLY FACES SUBSTANTIAL INTERNAL PERILS ISLAMIC EXTREMISTS WHO HAVE POSED A THREAT TO THE SECULAR GOVERNMENT FOR YEARS ARE BOLDER AND BETTER ORGANIZED IMAGINE THE SHOCK AMERICANS WOULD FEEL IF A BAND OF ASSASSINS DETONATED A BOMB IN TIMES SQUARE AND WOUNDED THE ATTORNEY GENERAL YET THAT IS ESSENTIALLY WHAT HAPPENED IN EGYPT A FEW WEEKS AGO WHEN FUNDAMENTALISTS SET OFF A BOMB IN CAIRO'S TAHRIR SQUARE AND WOUNDED THE INTERIOR MINISTER ALL THESE REAL THREATS TO MR MUBARAK ARE EXACERBATED BY A SHAKY ECONOMY STRUGGLING WITH MARKET REFORMS AND CONTRARY TO POPULAR BELIEF THE US HASN'T BEEN GIVING MORE AND MORE AID TO EASE THE PAIN OVERALL AID TO EGYPT HAS BEEN FROZEN AT ABOUT 21 BILLION ANNUALLY SINCE THE MID1980S OVER THAT TIME MR MUBARAK GOT EIGHT MILLION TO 10 MILLION MORE YOUNG MOUTHS TO FEED AS ANYONE WHO HAS LIVED IN EGYPT WILL TESTIFY EGYPTIANS HAVE A MARVELOUS ABILITY TO MUDDLE THROUGH SUCH PROBLEMS BUT THIS IS NO TIME TO ASSUME THAT WILL HAPPEN PRESIDENT CLINTON NEEDS TO OFFER MR MUBARAK A PUBLIC REITERATION OF STEADY AID AND SOLID AMERICAN BACKING THE TRICK IS TO DO THAT WITHOUT SMOTHERING HIM WHICH WOULD ONLY BOLSTER THE ISLAMIC EXTREMISTS WHO ALREADY CALL HIM A STOOGE OF THE WEST IT'S A TOUGH TASK FOR A YOUNG NEW PRESIDENT BUT HISTORY WON'T JUDGE KINDLY IF HE LOOKS THE OTHER WAY NOW 9309080083 930908 PRAXAIR UNIT ACQUISITION DANBURY CONN PRAXAIR INC AN INDUSTRIAL GASES CONCERN SAID ITS SA WHITE MARTINS UNIT HAS ACQUIRED THE REMAINING 40 OF FRACCHIA HERMANOS SA A LEADING INDUSTRIAL GASES COMPANY IN ARGENTINA TERMS WEREN'T DISCLOSED WHITE MARTINS IS BRAZIL'S LARGEST INDUSTRIAL GASES SUPPLIER AS REPORTED WHITE MARTINS INITIALLY PURCHASED 60 OF FRACCHIA HERMANS SHARES IN JULY 1992 IN ITS FIRST VENTURE OUTSIDE BRAZIL THE ACQUISITION WAS SPURRED BY THE MERCOSUL FREETRADE TREATY AMONG BRAZIL ARGENTINA URUGUAY AND PARAGUAY WHICH AIMS TO ELIMINATE TRADE BARRIERS BY 1995 9309080082 930908 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY SHOULD ADOPT RULES GOVERNING AIRLINES' COMPUTERIZED RESERVATION SYSTEMS AMR CORP'S AMERICAN AIRLINES SAID EXPRESSING FEAR THAT EUROPEAN CARRIERS WILL BLOCK A PROPOSAL DESIGNED TO FOSTER FAIR COMPETITION THE US CARRIER'S APPEAL MARKED THE LATEST SALVO IN A BATTLE OVER BOOKING SYSTEMS TODAY EC AND AVIATION INDUSTRY OFFICIALS WILL EXAMINE THE PROPOSED CODE OF CONDUCT TO REQUIRE AIRLINES TO GIVE SCHEDULING AND PRICING INFORMATION TO ALL RESERVATION SYSTEMS AND PREVENT THE SYSTEMS' OWNERS FROM GAINING ACCESS TO COMMERCIALLY SENSITIVE DATA ABOUT COMPETITORS EUROPEAN CARRIERS WORRY ABOUT AMR'S SABRE THE ONLY SYSTEM OWNED BY A SINGLE AIRLINE EUROPEAN SYSTEMS HAVE SEVERAL AIRLINE OWNERS AND HAVE SECURITY SYSTEMS TO PREVENT ABUSE BY ANY ONE OF THEM BUT THE ASSOCIATION OF EUROPEAN AIRLINES SAID IT WAS CONTENT WITH THE PROPOSAL WHICH PROVIDES FOR SOFTWARE SECURITY MEASURES TO PREVENT PEEKING AT RIVALS' SCHEDULING AND PRICING MOVES AN EC AUDITOR WOULD MONITOR COMPLIANCE THE NUMBER OF PEOPLE IN JAPAN AGED 100 OR OLDER ROSE FOR THE 23RD CONSECUTIVE YEAR TO A RECORD 4802 THE INCREASE OF 650 OR 16 FROM LAST SEPTEMBER WAS THE BIGGEST RECORDED OF THE TOTAL 3859 OR 80 WERE WOMEN IN JAPAN WHICH WILL OBSERVE RESPECT FOR THE AGED DAY A NATIONAL HOLIDAY ON SEPT 15 THE OLDEST KNOWN RESIDENT TANE IKAI OF NAGOYA IS 114 THE NUMBER OF CENTENARIANS PER 100000 PEOPLE AVERAGED 386 UP FROM 336 LAST YEAR JAPANESE HAVE THE WORLD'S LONGEST LONGEVITY A JAPANESE FEMALE BORN LAST YEAR CAN EXPECT TO LIVE TO AN AGE OF 822 YEARS ON AVERAGE AND A MALE TO 761 YEARS CHINA GRANTED PERMISSION TO AN ADDITIONAL 22 FOREIGN LAW FIRMS INCLUDING SIX FROM THE US TO OPEN PRACTICES IN THE COUNTRY SINCE CHINA FIRST ALLOWED FIRMS FROM ABROAD TO SET UP LAW OFFICES IN SOME CITIES LAST YEAR 41 HAVE DONE SO AND 100 MORE ARE AWAITING LICENSES THE FOREIGN FIRMS' PRACTICES ARE AUTHORIZED TO PROVIDE CONSULTING TO FOREIGN INVESTORS AND MAY REPRESENT FOREIGN CLIENTS IN CHINA AND CHINESE COMPANIES ABROAD FRENCH BUSINESS FAILURES IN JULY TOTALED A SEASONALLY ADJUSTED 5555 UP 83 FROM JUNE AND 79 FROM A YEAR EARLIER MONTHTOMONTH INCREASES WERE STRONG IN COMMERCE HOTELS RESTAURANTS BUSINESS SERVICES AND INDUSTRY BUT FAILURES FELL IN CONSTRUCTION MEANWHILE FRANCE'S 1994 BUDGET PROPOSAL TO BE RELEASED SEPT 20 WILL BE BASED ON ANNUAL ECONOMIC GROWTH BETWEEN 13 AND 14 HIGHER THAN MOST PARIS ECONOMISTS PREDICT THE GOVERNMENT EXPECTS ACTIVITY TO PICK UP FROM THE CURRENT SLUMP BY EARLY 1994 JAPAN'S UNUSUALLY COOL SUMMER FROSTED PROFITS OF HOMEAPPLIANCE MAKERS AND IN EUROPE RECESSION CHILLED DEMAND FOR MICROWAVE OVENS AND THE FOODS PREPARED IN THEM IN JAPAN SHIPMENTS OF AIR CONDITIONERS REFRIGERATORS AND OTHER ELECTRICAL APPLIANCES FELL SHARPLY EVEN SO STORES ARE AWASH IN UNSOLD AIR CONDITIONERS IN NORTHERN EUROPE SALES OF MICROWAVE OVENS PLUNGED IN THE YEAR THROUGH JUNE PACED BY A 23 DROP IN WESTERN GERMANY THE UNITS' PRICES MELTED TOO AMID HEATED COMPETITION FROM ASIAN PRODUCERS WITH A SHRINKING DEFENSE BUDGET AT HOME SOUTH AFRICAN ARMS PRODUCERS WANT A FOOTHOLD IN SOUTHEAST ASIA ONE OF THE FASTESTGROWING MARKETS FOR WEAPONS ARMSCOR SOUTH AFRICA'S DEFENSE PROCUREMENT AGENCY IS SPONSORING PARTICIPATION BY 40 ARMS MAKERS IN A MILITARY EQUIPMENT EXHIBITION IN DECEMBER IN MALAYSIA THE INVOLVEMENT BY THE FIRMS THE LARGEST GROUP FROM MORE THAN 30 COUNTRIES PLANNING TO SHOW THEIR WARES WOULD MARK A FIRST IN THE REGION SOME SOUTHEAST ASIAN NATIONS LIFTED SANCTIONS ON SOUTH AFRICA AS IT INTRODUCED DEMOCRATIC REFORMS THE SOUTH AFRICANS ARE PREPARING FOR SALES ONCE THE UNITED NATIONS ARMS EMBARGO IS LIFTED PLANNED AFTER THE COUNTRY'S FIRST NONRACIAL ELECTIONS NEXT APRIL BUT A SOUTH AFRICAN OFFICIAL PLAYED DOWN ARMSCOR'S AGGRESSIVE SALES CAMPAIGN IN SOUTHEAST ASIA SAYING HIS COUNTRY ISN'T TARGETING THAT REGION AS IT SEEKS TO EXPAND MILITARY EXPORTS JAPAN AND THE US MAY MEET IN HAWAII SEPT 1718 TO DISCUSS OPENING JAPAN'S PUBLICWORKS SECTOR THE US IN JUNE POSTPONED UNTIL NOV 1 IMPOSING SANCTIONS TO FORCE JAPAN TO ALLOW ACCESS TO ITS CONSTRUCTION MARKET CANTON A BOOMING HUB IN SOUTHERN CHINA THIS YEAR WILL START BUILDING ITS FIRST SUBWAY SYSTEM TO COST 105 BILLION AND SERVE 11 MILLION PASSENGERS A DAY WITH MUCH OF THE EQUIPMENT AND TECHNOLOGY IMPORTED AN 11MILE LINE IS TO BE COMPLETED IN FIVE YEARS 9309080081 930908 THANKS FOR YOUR THOUGHTFUL GIFT I'VE ALWAYS LIKED SKELETONS A LOT' BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FOR THE PAST TWO WEEKS THE LOS ANGELES COUNTY CORONER'S OFFICE HAS FIELDED MORE THAN 100 CALLS A DAY FROM PEOPLE SEEKING TOE TAGS AND OTHER POSTMORTEM PARAPHERNALIA AS GIFTS MARILYN LEWIS THE SECRETARY WHO DOUBLES AS MARKETING DIRECTOR OF THE OFFICE'S UNUSUAL SKELETONS IN THE CLOSET LINE OF GIFTS COULDN'T BE HAPPIER HER ONLY COMPLAINT SHE HAS BEEN INUNDATED BY ABOUT 2000 TELEPHONE INQUIRIES FROM AROUND THE WORLD WE'RE LOOKING INTO HIRING AN OUTSIDE MARKETING COMPANY SHE SAYS THIS IS GETTING TO BE MORE THAN WE CAN HANDLE BEFORE SOME RECENT PUBLICITY ABOUT THE PROGRAM WHICH BEGAN LAST YEAR ANYONE COULD WALK INTO THE CORONER'S OFFICE AND MAKE A PURCHASE BUT CROWDS BECAME UNWIELDY SO THE OFFICE IS PREPARING A MAILORDERONLY LIST NO INOFFICE SALES UNLESS A TOURIST HAPPENS BY WE TRY TO HELP PEOPLE IF THEY'RE FROM ANOTHER STATE MS LEWIS SAYS VISITORS HAVE BEEN FLOCKING TO SEE OFFICE MASCOT SHERLOCK BONES DRESSED IN A DETECTIVE'S HAT AND WEARING A PERMANENT GRIN AND AN OPEN TRENCH COAT THAT EXPOSES HIS SKELETAL SELF THE GHOULISH GIFTS MOST OF THEM EMBLAZONED WITH SHERLOCK AND SELLING FOR BETWEEN 4 AND 18 INCLUDE TSHIRTS BEACH TOWELS IMPRINTED WITH CHALK BODY OUTLINES COFFEE MUGS AND TOTE BAGS DON'T SAY BODY BAGS BECAUSE THAT GETS US IN TROUBLE SAYS MS LEWIS IN THE YEAR ENDED JUNE 30 WALKIN GIFT SALES AND THOSE FROM BOOTHS AT LOCAL FAIRS GENERATED 15000 THAT WENT TO A PROGRAM TO STEER YOUNG PEOPLE AWAY FROM DRUNKEN DRIVING BUT RECENT ATTENTION HAS CREATED NEW OPPORTUNITIES TOP OFFICIALS IN THE CORONER'S OFFICE REALIZE THIS COULD BE SOMETHING REALLY BIG MS LEWIS SAYS AND TASTELESS CORONER'S OFFICE EMPLOYEES THINK NOT PEOPLE FOR YEARS HAVE HAD TSHIRTS AND MUGS WITH POLICE FIRE AND HIGHWAYPATROL LOGOS ON THEM SAYS CRAIG HARVEY WHO RUNS THE DRUNKENDRIVER PROGRAM THOUGH SOME SEE MORBID HUMOR IN ALL THIS OFFICE SPOKESMAN SCOTT CARRIER TAKES IT ALL QUITE SERIOUSLY THERE'S NOTHING MACABRE ABOUT IT AT ALL HE SAYS YOU WANT MACABRE HE ASKS ONE NORTHERN CALIFORNIA CORONER'S OFFICE PRIVATELY USES A VULTURE AS ITS MASCOT AND HAS ADOPTED THE SLOGAN OUR DAY BEGINS WHEN YOUR DAY ENDS 9309080080 930908 EXDREXEL BOND TRADER IS BARRED BY LAW JUDGE WASHINGTON FORMER JUNKBOND TRADER BRUCE L NEWBERG HAS BEEN BARRED FROM ASSOCIATING WITH SECURITIES BROKERS OR DEALERS BASED ON HIS CONVICTION FOR STOCK MANIPULATION WHILE HE WORKED AT THE DEFUNCT DREXEL BURNHAM LAMBERT INC MR NEWBERG WAS CONVICTED OF SECURITIES FRAUD AND OTHER VIOLATIONS IN 1989 THE CHARGES ALSO LEVELED AGAINST FIVE EMPLOYEES OF PRINCETON/NEWPORT PARTNERS LP WERE RELATED TO THE MANIPULATION OF COMB CO'S COMMON SHARES THE SECURITY AND EXCHANGE COMMISSION'S ENFORCEMENT DIVISION HAD SOUGHT A TOUGHER PENALTY THAN THE BAR IMPOSED LAST WEEK BY AN ADMINISTRATIVE LAW JUDGE AT THE SEC WE'RE PLEASED BY THE LIMITED NATURE OF THE ORDER WHICH IS FAR LESS RESTRICTIVE THAN OTHER ORDERS IN THIS CASE SAID MR NEWBERG'S LAWYER SHELDON JAFFE THE ENFORCEMENT DIVISION HAD ASKED THAT MR NEWBERG WHO WORKED DIRECTLY FOR DREXEL'S FORMER JUNKBOND KING MICHAEL MILKEN BE BARRED FROM THE SECURITIES INDUSTRY GENERALLY THE ENFORCEMENT DIVISION CAN APPEAL THE MORE LIMITED DECISION AS CAN MR NEWBERG MR JAFFE SAID HE AND HIS CLIENT HAVE NOT COMPLETED OUR REVIEW OF THE DECISION YET 9309080079 930908 TANDY CORP SALES ARE UP FORT WORTH TEXAS TANDY CORP SAID SAMESTORE US SALES FOR AUGUST ROSE 7 THE RETAILER OF ELECTRONICS GOODS SAID TOTAL SALES INCREASED 17 TO 2897 MILLION FROM 2474 MILLION A YEAR EARLIER TANDY SAID THE FIGURES DON'T INCLUDE STORES THAT HAVE BEEN CLOSED UNDER THE COMPANY'S RESTRUCTURING PLAN 9309080078 930908 WORLD MARKETS STOCKS DROP BROADLY IN TOKYO SLUMP IN LONDON ON MORE PROFITTAKING TUMBLE IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES DROPPED BROADLY TUESDAY AS FERVENT HOPES FOR A JAPANESE INTERESTRATE CUT THAT HAD PUSHED PRICES HIGHER FOR TWO WEEKS COULDN'T OVERCOME FURTHER PROFITTAKING LONDON STOCKS LOST NEARLY 1 AS INVESTORS LOCKED IN PROFITS AND FRANKFURT EQUITIES TUMBLED 13 ON A LATE WAVE OF SELLING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11347 DOWN 051 REFLECTING DECREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11193 UP 158 OR 14 WITH KEPPEL OF SINGAPORE POSTING AN 5 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 12377 DOWN 801 OR 61 WITH ECHO BAY MINES OF CANADA SLIDING 15 IN LOCAL CURRENCY THE NIKKEI THOUGH IT FINISHED BELOW 21000 FOR THE FIRST TIME IN THREE SESSIONS WAS COMFORTABLY ABOVE THE INTRADAY LOW OF 2088019 SHORED UP BY CONTINUED HIGH EXPECTATIONS THAT THE BANK OF JAPAN WILL EASE CREDIT SOON A NEWS REPORT SAID THE CENTRAL BANK WILL SLASH ITS OFFICIAL DISCOUNT RATE 05 PERCENTAGE POINT TO 2 A RECORD LOW AS SOON AS NEXT WEEK PROFITTAKING WAS FUELED BY CAUTIOUS AND CONFLICTING COMMENTS BY JAPANESE GOVERNMENT OFFICIALS ABOUT WHAT FORM AN ECONOMIC STIMULUS PACKAGE COULD TAKE A CONFUSING SITUATION THAT DIDN'T STIMULATE THE URGE TO BUY STOCKS SHARE PRICES HELD STEADY FOR THE FIRST HOUR BEFORE BEGINNING THEIR DESCENT AND SPENT THE REST OF THE DAY WAFFLING AT LOWER LEVELS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SWOONED 204 POINTS TO 30386 THE FT 30STOCK INDEX SANK 171 POINTS TO 23797 VOLUME WAS 6276 MILLION SHARES UP FROM 4211 MILLION SHARES A DAY EARLIER MOST INVESTORS SHRUGGED OFF THE 100STOCK INDEX'S DECISIVE DROP ATTRIBUTING IT AS WELL TO FUTURES AND COMPUTER PROGRAMGUIDED TRADING AND SAYING THE BROADER MARKET WASN'T AS DISMAL AS THE INDICATORS SUGGESTED PROFITTAKING WASN'T DEEP IN ALL SECTORS WITH DEMAND IN MANY STILL STRONG YET AN EXPECTED LONDON BOOST FROM US INVESTORS WHO RETURNED FROM MONDAY'S LABOR DAY HOLIDAY DIDN'T MATERIALIZE AMONG SECTORS TELECOMMUNICATIONS SHARES CRUMBLED ON FEARS OF A MOBILETELEPHONE PRICE WAR IN FRANKFURT THE DAX 30STOCK INDEX SLUMPED 2432 POINTS TO 188596 THE BROAD DECLINE CAME IN THE FINAL HOUR OF TRADING THE SLIDE BEGAN AS SOME PROFESSIONAL INVESTORS SET UP FRESH SHORT POSITIONS SELLING BORROWED STOCK IN HOPES OF A MARKET DECLINE AND A LATER PROFIT BY REPLACING THE SHARES AT A LOWER PRICE IT SNOWBALLED AS THE DAX DROPPED BELOW 1900 SAYING THE ECONOMY IS STABILIZING ANALYSTS PLAYED DOWN AS NEUTRAL A REPORT ON WESTERN GERMAN SECONDQUARTER GROSS DOMESTIC PRODUCT WHICH ROSE AN INFLATIONADJUSTED 05 FROM THE FIRST QUARTER FOR THE FIRST INCREASE IN FIVE QUARTERS BUT WHICH FELL 19 FROM A YEAR EARLIER IN PARIS SHARE PRICES RESUMED THEIR CORRECTION AFTER A ONEDAY RESPITE FALLING ALMOST 1 IN REACTION TO A WEAK START ON WALL STREET IN MILAN EQUITIES WEAKENED LED DOWN BY A FEW BLUE CHIPS IN MADRID PRICES ROSE IN A TECHNICAL BOOST AFTER RECENT LOSSES IN STOCKHOLM STOCKS OPENED HIGHER BUT WERE DRAGGED DOWN BROADLY BY A SLIDE FOR THE AUTO MAKER VOLVO WHICH HAS AGREED TO MERGE WITH THE FRENCH AUTO CONCERN RENAULT IN ZURICH SHARES MADE MODERATE GAINS AMID LOW VOLUME AS MANY INVESTORS HOPED FOR A CUT TOMORROW IN GERMAN INTEREST RATES WHICH WOULD LEAD TO ECONOMYSTIMULATING EUROPEAN REDUCTIONS IN BRUSSELS STOCKS FELL BROADLY AS PROFITTAKING CONTINUED FOLLOWING LAST FRIDAY'S BIG GAINS IN SYDNEY SHARES ROSE MODERATELY BUT MANY INVESTORS WERE ON THE SIDELINES PREOCCUPIED WITH THE DIRECTION OF THE AUSTRALIAN DOLLAR WHICH WAS UNSETTLED BEFORE FALLING AGAINST OTHER CURRENCIES IN SINGAPORE BROADBASED PROFITTAKING SNAPPED A FIVESESSION WINNING STREAK BUT RENEWED BUYING KEPT THE MARKET FROM FALLING SHARPLY IN TAIPEI STOCKS STAGED A TECHNICAL REBOUND FROM THE PREVIOUS DAY'S SLUMP TO THE LOWEST LEVEL IN SEVEN MONTHS AND IN SEOUL STOCKS CLIMBED SHARPLY ON IMPROVING MARKET SENTIMENT FUELED IN PART BY RECENT MARKETBOOSTING MEASURES BY SOUTH KOREA'S FINANCE MINISTRY AMONG CORPORATE DEVELOPMENTS IN TOKYO NIPPON STEEL FINISHED UNCHANGED AT 367 YEN 351 CITING RECESSION AND THE STRONGER YEN THE STEELMAKER JAPAN'S BIGGEST REVISED ITS FORECAST FOR ITS PRETAX LOSS FOR THE FIRST HALF ENDING SEPT 30 TO 15 BILLION YEN 1433 MILLION THREE TIMES DEEPER THAN ITS PREVIOUS ESTIMATE NIPPON STEEL ALSO SAID IT WOULD SUSPEND PAYMENT OF ITS INTERIM DIVIDEND THE LOSS WOULD BE THE COMPANY'S FIRST FOR ITS FISCAL FIRST HALF SINCE A 1987 INDUSTRY SLUMP IN LONDON FISONS PLUNGED 65 OR 37 TO 1705 THE DRUG COMPANY'S FIRSTHALF PRETAX PROFIT ROSE 47 TO 423 MILLION 6461 FROM A YEAR EARLIER AS STRONG GROWTH IN THE US BRITISH AND FRENCH PHARMACEUTICAL MARKETS OFFSET DIFFICULT TRADING CONDITIONS IN ITALY AND GERMANY BUT THE LATTER ELEMENT PUSHED THE STOCK DOWN YESTERDAY THE EARNINGS WERE ON THE HIGH END OF PREVIOUS ESTIMATES THE UNCHANGED INTERIM DIVIDEND OF 42 PENCE A SHARE ALSO MET ANALYSTS' EXPECTATIONS IN FRANKFURT PORSCHE ENDED UNCHANGED AT 635 MARKS 39148 THE AUTO MAKER SAID ITS SALES IN THE YEAR ENDED JULY 31 FELL ABOUT 30 TO 19 BILLION MARKS 117 BILLION VEHICLE SALES FELL 32 TO 15000 UNITS FOR THE FISCAL YEAR PORSCHE STILL EXPECTS A LOSS WHICH ANALYSTS HAVE ESTIMATED AT 240 MILLION MARKS VOLKSWAGEN SKIDDED 1050 OR 28 TO 36150 THE AUTO MAKER BACKED AWAY FROM ITS EARLIER PREDICTION OF A PROFIT FOR 1993 THOUGH IT SAID THE PARENT COMPANY WOULD POST EARNINGS THE COMPANY HAD A FIRSTHALF LOSS OF 16 BILLION MARKS VW SAID IT HAS RUN INTO UNEXPECTED PROBLEMS IN ITS SPANISH UNIT AND TWO MAJOR MARKETS NORTH AMERICA AND ASIA/PACIFIC IT ALSO PREDICTED A SALES DECLINE FOR THE FIRST TIME IN 11 YEARS 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 9309080077 930908 INSIDE TRACK MCCAW INSIDERS SELL STOCK AMID AT&T MERGER BID BY WARREN GETLER AND JOHN J KELLER STAFF REPORTERS OF THE WALL STREET JOURNAL SENIOR INSIDERS AT MCCAW CELLULAR COMMUNICATIONS CO AREN'T WAITING FOR THE CONCLUSION OF THE COMPANY'S MEGAMERGER WITH AMERICAN TELEPHONE & TELEGRAPH CO BEFORE PROFITING FROM THEIR HOLDINGS RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THAT SEVERAL HIGHLEVEL MCCAW INSIDERS HAVE BEGUN TAKING PROFITS ON SMALL PARCELS OF THEIR HOLDINGS AS THE MERGER ENTERS A PROTRACTED REGULATORY AND POTENTIALLY LITIGIOUS PHASE LAST MONTH AT&T AGREED TO BUY MCCAW IN A ONEFORONE STOCK SWAP VALUED AT 126 BILLION THE AUG 16 ANNOUNCEMENT SENT MCCAW'S CLASS A SHARES SURGING 5 TO 5625 IN NATIONAL OVERTHECOUNTER TRADING SINCE THEN THE STOCK PEAKED AT 5775 ON SEPT 2 AND WAS DOWN 1625 YESTERDAY AT 5525 AT&T WAS AT 6175 DOWN 875 CENTS ON THE NEW YORK STOCK EXCHANGE BUT THE DEAL MUST STILL BE APPROVED BY FEDERAL REGULATORS CHARGED WITH PRESERVING THE 1982 AT&T BREAKUPAGREEMENT THAT PACT SOUGHT TO SPUR COMPETITION BY FORCING AT&T TO SHED ITS BELL PHONE MONOPOLIES NOW AT&T AND MCCAW MUST CONVINCE STATE REGULATORS IN THE 22 STATES IN WHICH MCCAW PROVIDES CELLULAR TELEPHONE SERVICE THAT THE MARRIAGE WILL FOSTER BETTER PHONE SERVICE ALL OF THIS PLUS THREATS BY INCREASINGLY SKITTISH BABY BELLS TO GUM UP THE MERGER'S PROGRESS WITH LAWSUITS HAS LED EXECUTIVES AT BOTH COMPANIES TO SPECULATE PRIVATELY THAT THE MERGER MIGHT NOT BE CONCLUDED UNTIL WELL INTO NEXT YEAR HENCE SENIOR MCCAW INSIDERS ARE CASHING IN AT THE MARGIN TURNING A SMALL NUMBER OF THEIR CURRENTLY EXERCISABLE OPTIONS AND IN SOME CASES SLICES OF THEIR DIRECT HOLDINGS INTO CASH IN LIGHT OF THE AT&T TRANSACTION SOME PEOPLE WERE TAKING PROFITS ON SMALL PORTIONS OF THEIR HOLDINGS THAT'S TO BE EXPECTED SAID ROBERT RATLIFFE MCCAW'S DIRECTOR OF CORPORATE COMMUNICATIONS MOST OF US HAVE HELD STOCK FOR A LONG TIME NEVER HAVING HAD AN OPPORTUNITY TO HAVE SOME LIQUIDITY HE SAID INDEED MCCAW'S HIGH COSTS FROM BUILDING ITS NETWORK AND MARKETING ITS CELLULAR SERVICE HAVE FORCED ITS INVESTORS TO TAKE A LONG VIEW TOWARD THEIR BETS THE COMPANY'S 49 BILLION IN DEBT HAS BEEN A DRAG ON WHAT IS OTHERWISE A HIGHLY PROFITABLE COMPANY FOR 1992 MCCAW POSTED A PRETAX LOSS OF 169 MILLION WHICH INCLUDED 490 MILLION OF INTEREST EXPENSE THAT WILL NOW BE PICKED UP BY AT&T AT MORE FAVORABLE INTEREST RATES WITHOUT THOSE PAYMENTS MCCAW'S OPERATING PROFIT WOULD HAVE MORE THAN DOUBLED IN 1992 TO 260 MILLION FROM 116 MILLION IN 1991 THE EARNINGS PROSPECTS FOR MCCAW ARE VERY VERY GOOD SAID KENNETH LEON AN ANALYST AT LEHMAN BROTHERS HE ADDED THAT ONCE MCCAW'S DEBT IS TAKEN OVER BY AT&T AT MORE FAVORABLE INTEREST RATES MCCAW COULD BECOME A HUGE EARNINGS CONTRIBUTOR TO AT&T AS MUCH AS A DIME A SHARE ANNUALLY MR RATLIFFE SAID THE CURRENT YEAR WILL BE THE COMPANY'S BEST EVER AND THAT THE SELLING HAS NOTHING TO DO WITH WORRYING ABOUT REGULATORY APPROVAL WE'RE HIGHLY CONFIDENT THAT WE'LL GET THIS THING DONE FROM A REGULATORY STANDPOINT TO BE SURE NONE OF THE INSIDERS AT MCCAW WHO SOLD COMPANY STOCK EXPRESSED CONCERN ABOUT THE PLANNED MERGER'S ULTIMATE PROSPECTS FOR APPROVAL THEIR MOTIVATION INSTEAD STEMS FROM MCCAW'S STRICT INTERNAL RULES THAT PROHIBITED THEM FROM SELLING DURING THE AT&T NEGOTIATIONS FREED FROM THOSE RESTRICTIONS THEY NOW ARE ABLE TO SELL STOCK TO RAISE CASH FOR PERSONAL REASONS NOTING THE 6 PREMIUM ON AT&T'S STOCK COMPARED WITH MCCAW SHARES ANDREW QAURTNER MCCAW'S SENIOR VICE PRESIDENT FOR LEGAL AFFAIRS SAID HIS AUG 2527 SALE OF 20000 SHARES FOLLOWING THE EXERCISE OF OPTIONS WAS BASED LARGELY ON THE POTENTIAL TIME LAG OF THE REGULATORY PROCESS IF I KNEW THAT THE DEAL WOULD BE APPROVED IN TWO MONTHS WOULD I SELL NOW THE ANSWER IS NO HE SAID PEOPLE WHO ARE SELLING NOW ARE PAYING A PENALTY BUT THEY HAVE PERSONAL REASONS FOR DOING SO HE DIDN'T ELABORATE ON HIS REASONS FOR SELLING THE 20000 SHARE PARCEL AT AN AVERAGE 55 A SHARE BUT NOTED THAT COMPENSATION AT THE FIRM IS LARGELY IN THE FORM OF STOCK OPTIONS THE SALE DOESN'T REFLECT ANY LACK OF BELIEF IN THE TRANSACTION RECEIVING FULL REGULATORY APPROVAL HE SAID WILLIAM OBERLINK A SENIOR VICE PRESIDENT IN CHARGE OF MCCAW'S OPERATIONS IN THE FLORIDA REGION SOLD 47000 SHARES AFTER EXERCISING OPTIONS AND THEN AN ADDITIONAL 1900 SHARES FROM HIS DIRECT HOLDINGS IN LATE AUGUST AND EARLY THIS MONTH THESE SALES WERE PURELY TO CREATE SOME LIQUIDITY FOR PERSONAL REASONS HE SAID TWO OTHER OFFICERS RECENTLY INDICATED PLANS TO SELL MCCAW STOCK SEC DATA SHOW TOM ALBERG AN EXECUTIVE VICE PRESIDENT FILED HIS INTENTION TO SELL 10200 SHARES ON AUG 20 HE WAS UNAVAILABLE FOR COMMENT SENIOR VICEPRESIDENT KERRY LARSON INDICATED HIS INTENTION TO SELL 5000 SHARES ON AUG 30 HE ALSO COULDN'T BE REACHED AMONG DIRECTORS JOHN STANTON INDICATED HIS INTENTION TO SELL 100000 SHARES DIRECTORS BRUCE MCCAW KEITH MCCAW AND JOHN MCCAW JR ALSO FILED DOCUMENTS INDICATING THEIR INTENTION TO SELL 150000 SHARES 250000 SHARES AND 83000 SHARES RESPECTIVELY BETWEEN AUG 1925 NONE OF THE DIRECTORS COULD BE REACHED FOR COMMENT ANALYSTS WHO TRACK THE COMPANY SAID THAT THE MCCAW BROTHERS ARE REGULAR SELLERS OF COMPANY STOCK AND AS SUCH THEIR RECENT SALES WOULDN'T BE UNUSUAL INSIDERS AT TWO HIGHFLYING WALL STREET FIRMS HAVE BEEN SELLING SOME OF THEIR HOLDINGS SEC DATA INDICATE THREE INSIDERS AT PAINEWEBBER GROUP INC RECENTLY TRIMMED THEIR OVERALL HOLDINGS BY AN AVERAGE 52 FOLLOWING THE CONVERSION INTO STOCK OF A CONVERTIBLE BOND WHILE TWO INSIDERS AT MERRILL LYNCH & CO UNLOADED SMALLER PORTIONS OF THEIR OVERALL HOLDINGS PAINEWEBBER INC CHAIRMAN DONALD MARRON SOLD 293040 SHARES OR ROUGHLY 18 OF HIS HOLDINGS INCLUDING EXERCISABLE OPTIONS AT AN AVERAGE PRICE OF 32 A SHARE ON AUG 18 SEC FILINGS INDICATE JOHN BULT CHAIRMAN OF PAINEWEBBER INTERNATIONAL INC SOLD 73260 SHARES OR ABOUT 64 OF HIS TOTAL HOLDINGS AT AN AVERAGE 32 A SHARE ON AUG 18 AND PIERCE SMITH TREASURER AND CONTROLLER OF PAINEWEBBER INC SOLD 36360 SHARES OR 74 OF HIS TOTAL HOLDINGS AT AN AVERAGE PRICE OF 32 ON AUG 18 AS WELL THESE INSIDERS ALL OWNED CONVERTIBLE BONDS AND DECIDED TO CONVERT THE BONDS INTO SHARES WHICH WERE THEN SOLD SAID A SPOKESMAN FOR PAINEWEBBER NOTING THAT THE STOCK HAS BEEN TRADING AT OR NEAR SPLITADJUSTED HIGHS THE SPOKESMAN SAID THE SALES WERE MEANT FOR TAX AND ESTATE PLANNING PURPOSES ONLY AT MERRILL LYNCH THE COMPANY'S EXECUTIVE VICE PRESIDENT INTERNATIONAL WINTHROP H SMITH JR MADE HIS FIRST SALE IN NEARLY 20 YEARS HE SAID BY UNLOADING 36000 SHARES IN JULY AT AN AVERAGE 8750 A SHARE FOLLOWING THE EXERCISE OF OPTIONS ALL OF MY ASSETS ARE IN MERRILL LYNCH SO IT WAS JUST PRUDENT TO HAVE SOME DIVERSIFICATION HE SAID HE SAID THE SALE REPRESENTED LESS THAN 20 OF HIS OVERALL HOLDINGS INCLUDING OPTIONS THAT ARE EXERCISABLE ARTHUR ZEIKEL A VICE PRESIDENT FILED AN INTENTION TO SELL 50000 SHARES ON AUG 26 REACHED BY TELEPHONE HE SAID I AM NOT AVAILABLE FOR COMMENT 9309080076 930908 LEISURE & ARTS THEATER A BIG HIT AND A MISS BY EDWIN WILSON NEW YORK THERE IS A 10MINUTE STRETCH IN THE MIDDLE OF BLACK COMEDY WHERE I COULD NOT TELL YOU A LINE OF DIALOGUE IF MY LIFE DEPENDED ON IT BRIAN MURRAY AND NANCY MARCHAND ARE SITTING ON STAGE ON A DIVAN CHATTING AMIABLY BUT EVERY WORD IS DROWNED OUT BY THE RAUCOUS LAUGHTER OF THE AUDIENCE THOUGH NOTHING BEFORE OR AFTER QUITE MATCHES THIS SEGMENT FOR ALLOUT MIRTH THE FULL HOURANDAQUARTER OF THE REST OF THE PLAY IS PRETTY MUCH NONSTOP HILARITY BLACK COMEDY IS ONE OF A PAIR OF ONEACT PLAYS BY PETER SHAFFER THE OTHER BEING WHITE LIARS THAT WERE FIRST PRODUCED ON BROADWAY IN 1967 AND HAVEN'T BEEN SEEN HERE SINCE NOW THEY ARE BEING REVIVED IN A NEW PRODUCTION AT THE ROUNDABOUT THEATRE DIRECTED BY GERALD GUTIERREZ MR SHAFFER EXPLAINS IN A NOTE THAT SOME YEARS AGO HE HAD SEEN A SHORT CHINESE PIECE IN WHICH TWO WARRIORS WERE FIGHTING A FIERCE DUEL WITH WORDS IN A ROOM THAT WAS TOTALLY DARK ONLY FOR PURPOSES OF THE STAGE THE CIRCUMSTANCES WERE REVERSED THE LIGHTS WERE ON FULL FOR THE BENEFIT OF THE AUDIENCE BUT THE MEN ACTED AS IF THEY WERE IN A PITCH BLACK ROOM THE YEAR BEFORE MR SHAFFER HAD BEEN INVOLVED IN THE SUCCESSFUL LAUNCHING OF HIS SERIOUS HISTORICAL DRAMA THE ROYAL HUNT OF THE SUN SEEKING A BIT OF COMIC RELIEF BOTH FOR HIMSELF AND THE COMPANY HE THOUGHT OF DEVISING AN ENGLISH FARCE FOR THEM USING THE PREMISE OF THE CHINESE VIGNETTE THE RESULT WAS BLACK COMEDY BRINDSLEY PETER MACNICOL AN ASPIRING SCULPTOR IS ENGAGED TO CAROL ANNE BOBBY A FLIGHTY DEBUTANTE WITH AN OVERBEARING MILITARY FATHER KEENE CURTIS WHO HAS BEEN INVITED TO BRINDSLEY'S STUDIO TO MEET HIM KNOWING THAT HER FATHER WILL DISAPPROVE OF BRINDSLEY'S BOHEMIAN DIGS CAROL INSISTS THAT THEY BORROW THE ELEGANT FURNITURE OF THE MAN IN A NEIGHBORING APARTMENT HAROLD GORRINGE MR MURRAY AN ANTIQUE DEALER WITH A PRICELESS COLLECTION WHO IS SUPPOSEDLY OUT OF TOWN ALSO COMING TO BRINDSLEY'S APARTMENT IS GEORGE BAMBERGER RAY XIFO THE RICHEST MAN IN THE WORLD WHO MIGHT BUY SOME OF HIS SCULPTURE WHEN THE CURTAIN GOES UP THE STAGE IS DARK BUT WE REALIZE THAT FOR THE CHARACTERS ON STAGE IT IS FULLY LIT THUS THE PREMISE IS ESTABLISHED THAT THE LIGHTING IS JUST THE REVERSE OF WHAT WE SEE THEN JUST BEFORE EVERYONE IS TO ARRIVE AT THE APARTMENT A MAIN FUSE BLOWS AND THE LIGHTS GO OUT AT WHICH POINT THE STAGE IS ILLUMINATED IN A BLAZE OF WHITE LIGHT TO REINFORCE THE CONCEPT WHENEVER SOMEONE ON STAGE TURNS ON A FLASHLIGHT OR A CIGARETTE LIGHTER THE STAGE DIMS NEEDLESS TO SAY THE CHARACTERS ON STAGE ARE PERPETUALLY FUMBLING IN THE DARK RUNNING INTO FURNITURE AND GRABBING AT EACH OTHER IN EMBARRASSING PARTS OF THE BODY JUST AS THE MILITARY FATHER BEGINS TO WONDER WHAT HIS DAUGHTER HAS GOTTEN HERSELF INTO THE ANTIQUE DEALER HAROLD UNEXPECTEDLY RETURNS HOME AND JOINS THE GROUP A DESPERATE BRINDSLEY REALIZES HE MUST NOT LET THE PETULANT HAROLD KNOW THAT HIS PRECIOUS FURNITURE HAS BEEN BORROWED AND SO HE BEGINS SURREPTITIOUSLY IN THE DARK TO TAKE THE ANTIQUES BACK TO HAROLD'S APARTMENT AND RETURN WITH HIS OWN SECONDHAND CHAIRS IN THE MIDST OF THESE SWAPS HE GETS BOTH FEET CAUGHT IN THE HANDLES OF A LARGE HANDBAG SLIDES DOWN A FULL FLIGHT OF STAIRS AND KNOCKS HIS PROSPECTIVE FATHERINLAW OUT OF A ROCKING CHAIR AND ONTO THE FLOOR IT IS DURING THE FURNITURE EXCHANGE THAT THE AUDIENCE GIVES WAY TO UNCONTROLLABLE GUFFAWS MR SHAFFER COMPOUNDS HIS FARCE WITH OTHER CHARACTERS WHO TURN UP A PRIM NEIGHBOR MS MARCHAND WHO IS ALSO AN ALCOHOLIC AND CLEA KATE MULGREW A LONGTIME GIRLFRIEND OF BRINDSLEY WHO IS ON THE SCENE A GOOD FIVE MINUTES STIRRING UP TROUBLE BEFORE ANYONE KNOWS SHE IS THERE SOMETIMES SERIOUS PLAYWRIGHTS LIKE MR SHAFFER WHO IS ALSO THE AUTHOR OF EQUUS AND AMADEUS ARE AT THEIR BEST WHEN THEY RELAX AND LET THEMSELVES GO WITH COMEDY AH WILDERNESS BY THE USUALLY SOMBER EUGENE O'NEILL IS A PRIME EXAMPLE THAT PROVES TO BE THE CASE AS WELL WITH MR SHAFFER AND BLACK COMEDY HE HAS NOTHING ON HIS MIND BUT FUN AND AS A RESULT IT IS AN ALLOUT ROMP WHICH BOTH THE CAST AND MR GUTIERREZ PLAY FOR ALL IT IS WORTH MR MACNICOL ESPECIALLY IS A SUPERB FARCEUR IT'S TOO BAD MR SHAFFER WASN'T ALSO ON HOLIDAY WHEN HE WROTE WHITE LIARS THE ONEACT PLAY THAT THE ROUNDABOUT IS PRESENTING AS A COMPANION PIECE TO BLACK COMEDY MR SHAFFER IN THE SAME NOTE IN WHICH HE TALKS OF THE GENESIS OF BLACK COMEDY SAYS THAT THE VERSION OF WHITE LIARS WE NOW SEE REPRESENTS AN EXTENSIVE REVISION OF THE FIRST VERSION PRESENTED HERE IN 1967 I DIDN'T SEE THAT EARLIER VERSION SO I CANNOT COMMENT ON IT BUT IT'S HARD TO BELIEVE THAT THE REWRITES ARE AN IMPROVEMENT WHITE LIARS CONCERNS THREE PEOPLE SOPHIE NANCY MARCHAND A FORTUNE TELLER AT A SEEDY BRITISH SEASIDE RESORT TOM DAVID AARON BAKER A ROCK SINGER AND FRANK PETER MACNICOL HIS MANAGER IT DEVELOPS THAT NONE OF THE THREE IS TELLING THE TRUTH SOPHIE CALLS HERSELF A BARONESS BUT SHE IS REALLY A BOOZEHOUND WITH DELUSIONS OF GRANDEUR TOM CLAIMS TO BE A WORKINGCLASS CHARACTER WHO HAS COME UP THE HARD WAY VIA HIS MUSIC BUT IN FACT HIS BACKGROUND IS SOLIDLY UPPERMIDDLE CLASS FRANK SAYS HE IS TRYING TO SAVE HIS RELATIONSHIP WITH HIS GIRLFRIEND BUT IT BECOMES CLEAR IT IS ANOTHER LIAISON HE WISHES TO PRESERVE IT TAKES MR SHAFFER A LONG TIME TO REVEAL WHAT ARE ESSENTIALLY THREE SIMPLE CASES OF DECEPTION IN THE MEANTIME WE WATCH BOTH THE AUTHOR AND THE ACTORS STRUGGLE THIS IS THE PROBLEM THERE IS SO MUCH EFFORT APPARENT MR SHAFFER LABORS TO MAKE HIS POINT AND THE ACTORS DESPERATELY TRY TO BRING THE SITUATION TO LIFE SET SIDE BY SIDE THE TWO PLAYS OFFER AN OBJECT LESSON IN CREATING SPONTANEOUS THEATER ONE IS REMINDED OF FRED ASTAIRE AND THE HOURS AND HOURS OF BEHINDTHESCENES LABOR TO PRODUCE WHAT APPEARED TO BE EFFORTLESS STYLE AND GRACE WITH REFLECTION WE KNOW THAT IN BLACK COMEDY BOTH THE WRITER AND THE PERFORMERS WORKED THEMSELVES TO DEATH TO PERFECT THE CONTROL AND THE TIMING REQUIRED TO PRODUCE THE PLAY'S COMIC EFFECTS BUT NONE OF THIS SHOWS SINCE EVERYTHING APPEARS FACILE AND OFFHAND WE RELAX AND ENJOY OURSELVES WITH WHITE LIARS THOUGH THE EXERTION IS ALLTOOAPPARENT AND OUR AWARENESS OF THAT SADLY TAKES AWAY THE FUN 9309080075 930908 LEISURE & ARTS BOOKSHELF LETHAL FUN BLOWN AWAY BY AN ILL WINDFALL BY LAURIE MUCHNICK AT THE AMERICAN BOOKSELLERS ASSOCIATION CONVENTION IN MIAMI THIS PAST JUNE TWO LITERARY AGENTS FOUND A BIG PACKAGE OF COCAINE ON THE BEACH THOUGH IT WAS WORTH MILLIONS THEY IMMEDIATELY TURNED IT OVER TO THE POLICE MAYBE THEY WERE PARTICULARLY ETHICAL PEOPLE OR MAYBE THEY HAD BEEN READING SCOTT SMITH'S A SIMPLE PLAN KNOPF 352 PAGES 21 A FIRST NOVEL ABOUT A MAN WHO FINDS SEVERAL MILLION DOLLARS AND THE TERRIBLE CONSEQUENCES OF HIS DECISION TO KEEP IT DOES THE STORY RING A BELL THINK BACK TO LAST AUTUMN ANOTHER YOUNG WRITER ANOTHER BOOK ABOUT ORDINARY PEOPLE WRESTLING WITH CRIME THE SAME PRESTIGIOUS PUBLISHER A SIMPLE PLAN HAS A LOT IN COMMON WITH DONNA TARTT'S THE SECRET HISTORY AN ERUDITE AND ENTERTAINING BOOK ABOUT A GROUP OF COLLEGE STUDENTS WHO KILL ONE OF THEIR FRIENDS TO COVER UP AN EARLIER MURDER KNOPF HEAVILY PROMOTED THE SECRET HISTORY AND ITS PHOTOGENIC AUTHOR AND THE BOOK WAS PHENOMENALLY SUCCESSFUL NOW THE SAME MIGHTY PUBLICITY MACHINE IS GEARING UP TO MAKE A SIMILAR SUCCESS OF A SIMPLE PLAN THE REVIEWER'S GALLEY INFORMS US THAT THE BOOK HAS ALREADY BEEN SOLD FOR PUBLICATION IN 13 FOREIGN COUNTRIES AND HAS BEEN OPTIONED BY HOLLYWOOD AND THAT THE PAPERBACK RIGHTS WERE SNAPPED UP AFTER A MAJOR AUCTION CAN ANY BOOK LIVE UP TO SO MUCH HYPE THE TALE BEGINS PROMISINGLY ENOUGH WE MEET THE NARRATOR HANK MITCHELL AN ORDINARY MIDWESTERNER WHO WORKS AS THE ASSISTANT MANAGER OF A FEED STORE IN THE SMALL TOWN WHERE HE GREW UP THE FIRST PARAGRAPH IS TERRIFIC IT PULLS US RIGHT INTO THE STORY MY PARENTS DIED IN AN AUTOMOBILE ACCIDENT THE YEAR AFTER I WAS MARRIED THEY TRIED TO ENTER I75 THROUGH AN EXIT RAMP ONE SATURDAY NIGHT AND CRASHED HEADON INTO A SEMI HAULING CATTLE MY FATHER WAS KILLED INSTANTLY IN THE WRECK DECAPITATED BY THE HOOD OF HIS CAR BUT MY MOTHER MIRACULOUSLY SURVIVED SHE LIVED FOR A DAY AND A HALF MORE HOOKED UP TO MACHINES IN THE DELPHIA MEMORIAL HOSPITAL HER NECK AND BACK BROKEN HER HEART LEAKING BLOOD INTO HER CHEST WE QUICKLY LEARN THAT HANK'S PARENTS HAD MORTGAGED THEIR FARM TO THE HILT AND THAT HANK'S WIFE SARAH SUSPECTS THEIR ACCIDENT WAS REALLY A DOUBLE SUICIDE HANK AND HIS BROTHER JACOB WERE NEVER VERY CLOSE BUT THEY FULFILLED THEIR FATHER'S WISH THAT THEY VISIT HIS GRAVE TOGETHER EVERY YEAR ON DEC 31 WHICH WAS HIS BIRTHDAY ON THE EIGHTH YEAR AFTER THEIR FATHER'S DEATH JACOB PICKS HANK UP ON HIS WAY BACK FROM AN ICEFISHING TRIP WITH HIS DOG MARY BETH AND HIS BEST FRIEND LOU A DRUNKEN GOODFORNOTMUCH WHO LIKES TO MAKE FUN OF HANK BY CALLING HIM MR ACCOUNTANT ON THE INFREQUENT OCCASIONS WHEN THE THREE MEN GET TOGETHER THE DYNAMICS REVERT TO THE HIGH SCHOOL LEVEL THE COLLEGEEDUCATED HANK TURNS INTO A GEEK WHILE THE HEAVY DRINKING PERENNIALLY UNEMPLOYED JACOB AND LOU ARE THE COOL TOUGH GUYS I COULD NEVER ESCAPE THE FEELING THAT THEY WERE CONSTANTLY MAKING FUN OF ME HANK CONFIDES ON THEIR WAY TO THE CEMETERY THE THREE MEN STUMBLE ACROSS THE WRECK OF A SMALL AIRPLANE JACOB AND LOU BULLY HANK INTO GOING INSIDE TO CHECK IT OUT WHAT HE FINDS THERE BESIDES A DEAD PILOT AND A CROW WHO'S PECKED HIS EYES OUT IS A CANVAS BAG FULL OF MONEY 44 MILLION DOLLARS SO FAR SO GOOD WHEN IT BECOMES CLEAR THAT JACOB AND LOU NEED THE MONEY A LOT MORE THAN HE DOES HANK GAINS A SORT OF POWER OVER THE TWO MEN WHO ONLY MINUTES BEFORE WERE TAUNTING HIM THOUGH HIS FIRST IMPULSE IS TO CALL THE POLICE HE DECIDES THAT THEY WILL KEEP THE MONEY BUT INSISTS ON HIDING IT UNTIL THEY FIND OUT IF ANYONE IS LOOKING FOR IT IF THE THEFT IS DISCOVERED HE SAYS HE WILL BURN THE LOOT DESTROYING THE ONLY PROOF THAT THEY EVER HAD IT A SIMPLE PLAN HANK THINKS BUT ONE WHICH NATURALLY SPINS OUT OF CONTROL FASTER THAN YOU CAN SAY I'M GOING TO DISNEYLAND BY THE NEXT DAY JACOB AND HANK HAVE MURDERED A LOCAL FARMER WHO WAS HEADING IN THE DIRECTION OF THE PLANE HANK CONVINCES HIMSELF THAT HE KILLED THE MAN NOT FOR THE MONEY BUT TO AVOID BEING CAUGHT AND IT IS THIS INSTINCT FOR SELFPRESERVATION THAT FUELS HIS INCREASINGLY CALCULATED AND BLOODY CRIMES MR SMITH WANTS TO SHOW US HOW AN ORDINARY MAN CAN TURN INTO A MONSTER AND HE THROWS IN BACKGROUND INFORMATION LIKE THE FACT THAT HANK'S FATHER CALLED MONEY THE BLOOD OF LIFE THE IMPLICATION IS THAT IF ONLY THE ELDER MITCHELLS HAD HAD THE MONEY TO PAY THEIR DEBTS THEY WOULDN'T HAVE KILLED THEMSELVES SO MAYBE MONEY REALLY CAN BUY HAPPINESS THE PROBLEM IS THAT ALTHOUGH MR SMITH PROVIDES US WITH PLENTY OF RATIONALIZATIONS FOR WHY HANK WOULD BECOME AN EMOTIONLESS MURDERER HE NEVER MAKES IT PSYCHOLOGICALLY CONVINCING IN BOTH THE SECRET HISTORY AND INDEED IN CRIME AND PUNISHMENT ONLY TWO PEOPLE ARE KILLED AND THE BULK OF THE BOOKS ARE SPENT EXPLORING THE EFFECTS OF THE CRIMES ON THE SEEMINGLY ORDINARY CRIMINALS A SIMPLE PLAN IS LIKE A TELEVISION MOVIE OF THE WEEK REQUIRING A NEW CLIFFHANGER BEFORE EVERY COMMERCIAL AND A NEW MURDER AFTERWARDS MS MUCHNICK IS A WRITER IN NEW YORK 9309080074 930908 MEDIA HOLLYWOOD PAPERS FIGHT IT OUT FIERCELY BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL THAT'S HOW THE HEADLINE MIGHT READ IF DAILY VARIETY THE PAPER FAMOUS FOR SUCH BANNERS AS HIX NIX STIX PIX CHOSE TO EXAMINE OBJECTIVELY THE STATE OF ITS RIVALRY WITH THE HOLLYWOOD REPORTER ITS LONGTIME SECOND FIDDLE CERTAINLY NEITHER PUBLICATION IS MUCH OF A BLOCKBUSTER IN THE CURRENT ECONOMIC ENVIRONMENT AN ADVERTISING SLUMP HAS WHIPPED HOLLYWOOD'S TRADE NEWSPAPERS WHICH HAVE ENORMOUS INFLUENCE IN THE ENTERTAINMENT BUSINESS DESPITE RELATIVELY SMALL CIRCULATIONS TOUGH TIMES HAVE TURNED A HEALTHY COMPETITION INTO A VICIOUS RIVALRY LEADING TO A MORALE CRISIS OF SORTS AT THE TRADES WITH NEWSROOM DRAMAS WORTHY OF MOVIE TREATMENTS BUT INDUSTRY EXECUTIVES SAY THAT EVEN AS BOTH SUFFER FINANCIALLY STEADY IMPROVEMENT OF THE REPORTER'S PRODUCT HAS NARROWED THE ONCEWIDE GAP BETWEEN IT AND VARIETY MEANWHILE VARIETY HAS LOST SOME STAR REPORTERS TRIMMED NEWS BUREAUS AND LOST SOME CREDIBILITY ALONG THE WAY THESE EXECUTIVES SAY DAILY VARIETY LONG CONSIDERED HANDSDOWN THE FIRST MORNING READ FOR ENTERTAINMENT MOGULS IS STILL THE NO 1 TRADE FOR MANY EXECUTIVES BUT THE REPORTER HAS PICKED UP A NUMBER OF THE WELLKNOWN FORMER VARIETY STAFFERS AND UNLIKE A FEW YEARS AGO THE REPORTER NOW GETS ITS SHARE OF SCOOPS LEADING PUBLICISTS NOT TO VIEW PLANTING A STORY THERE AS AN AFTERTHOUGHT ANYMORE A TYPICAL BEAT THE REPORTER'S EXCLUSIVE THAT STEVEN SPIELBERG IS IN TALKS TO DIRECT THE MOVIE VERSION OF BESTSELLER THE BRIDGES OF MADISON COUNTY THERE'S BEEN A SHIFT IN PERCEPTION AND IN HOLLYWOOD PERCEPTION COUNTS FOR EVERYTHING THE REPORTER HAS COME A LONG WAY AND I THINK BOB DOWLING HAS A LOT TO DO WITH IT SAYS DAVID COLDEN AN ENTERTAINMENT ATTORNEY AT WEISSMANN WOLFF REFERRING TO THE REPORTER'S PUBLISHER AND EDITOR IN CHIEF ROBERT DOWLING IT'S NOT THE TRADE RAG IT USED TO BE MR DOWLING NOT SURPRISINGLY AGREES THE JOKE USED TO BE IF YOU WANT TO KNOW WHAT'S IN VARIETY TODAY READ THE REPORTER TOMORROW BUT THAT'S NOT THE CASE ANYMORE HE SAYS OF HIS PAPER WHICH IS PUBLISHED BY NEW YORKBASED BPI COMMUNICATIONS INC VARIETY EXECUTIVES SCOFF AT THE NOTION THAT THE REPORTER IS GAINING ON IT IN ANY WAY I THINK VARIETY'S COMMANDING LEAD OVER THE REPORTER IS WIDER THAN EVER SAYS PETER BART THE PAPER'S VICE PRESIDENT AND EDITORIAL DIRECTOR THE LEAD IS WIDENING AND I THINK IT WILL CONTINUE TO DO SO NOT ALL OF THE STATISTICS BACK HIM UP THE LATEST CIRCULATION NUMBERS SHOW THAT THE CIRCULATION OF BOTH TRADES IS ESSENTIALLY UNCHANGED IN THE PAST YEAR WITH A CIRCULATION OF 24029 DAILY VARIETY FARED A BIT BETTER IN THE MOST RECENT REPORTING PERIOD THAN THE REPORTER WHICH CLAIMS CIRCULATION OF 21817 FOR EVERY DAY EXCEPT TUESDAY BUT THE REPORTER HOLDS A WIDE LEAD OVER DAILY VARIETY IN AD PAGES THOUGH VARIETY HAS THE EDGE WHEN ITS SEPARATE WEEKLY EDITION IS INCLUDED MOREOVER THE REPORTER IS MAKING STRONG GAINS IN ITS TUESDAY INTERNATIONAL EDITION WHICH WAS CREATED TO COMPETE WITH WEEKLY VARIETY WHICH COMES OUT ON MONDAYS WEEKLY VARIETY'S CIRCULATION WHICH IN THE 1970S TOPPED 50000 HAS BEEN LANGUISHING AT AROUND 30000 CIRCULATION AT THE REPORTER'S TUESDAY EDITION IN THE LAST YEAR SHOT UP 9 TO 28583 THE HEATED BATTLE COMES AS MOVIE STUDIOS ARE CONTINUING TO SLASH ADVERTISING IN BOTH TRADES EVEN THOUGH THEY'RE REAPING THE REWARDS OF A RECORD SUMMER AT THE BOX OFFICE THE STUDIOS' COSTCONSCIOUSNESS IS INTENSIFYING AN ALREADY SKITTISH RELATIONSHIP BETWEEN THE TRADES AND THE INDUSTRY REPORTERS AT BOTH PAPERS CHARGE THAT THE PRESSURE FOR INDUSTRY ADS HAS EDITORS SHUNNING TOUGH STORIES BUT PERHAPS THE MOST CRITICAL FOCUS HAS BEEN ON MR BART A FLAMBOYANT FORMER STUDIO EXECUTIVE WHOM REED ELSEVIER PLC'S CAHNERS PUBLISHING UNIT CHOSE TO HEAD VARIETY IN 1989 HAVING WORKED AT PARAMOUNT PICTURES AND METROGOLDWYNMAYER INC HE HAS MANY FRIENDS IN THE BUSINESS AND SOME OF HIS VARIETY STAFFERS CHARGE HE GOES OUT OF HIS WAY TO PROTECT HIS MOVIEINDUSTRY ASSOCIATES IN PRINT MR BART BRISTLES AT THE SUGGESTIONS I HAVE NEVER EXCISED ANYTHING FROM A STORY EXCEPT WHEN I DETERMINED AN ITEM REPRESENTED SOMEONE'S AGENDA AND NOT NEWS HE SAYS EXPLAINING RECENT CUTS HE MADE IN STORIES ABOUT THE REVIVAL PLAN AT MGM I DO HAVE A BIT OF A NOSE FOR WHAT'S TRUE AND WHAT ISN'T REPORTERS AT VARIETY NEVERTHELESS SAY THEY WERE IRRITATED WHEN MR BART EDITED OUT REFERENCES TO WIDESPREAD INDUSTRY SPECULATION ABOUT A PLAN TO SELL MGM TO CARGILL INC THAT SUBSEQUENTLY DIDN'T COME TO PASS AT THE TIME RUMORS WERE RAMPANT THAT MR BART WAS BEING CONSIDERED FOR AN EXECUTIVE POST AT MGM THAT AMAZES AND AMUSES ME HE SAYS I NARROWLY ESCAPED WITH MY LIFE THE FIRST TIME WHY WOULD I WANT TO GO BACK AND DO THAT AGAIN EDITORS AND REPORTERS AT BOTH PAPERS REVEL IN POINTING OUT THE OTHER'S ALLEGED SHORTCOMINGS AND ERRORS MR BART FOR EXAMPLE SAYS THAT THERE'S A SOLID WALL AT VARIETY BETWEEN THE ADVERTISING AND EDITORIAL DEPARTMENTS AND THAT HEAVY ADVERTISERS AREN'T GIVEN SPECIAL TREATMENT IN STORIES I'M NOT SO SURE THAT WALL EXISTS AT THE HOLLYWOOD REPORTER HE SAYS RESPONDS MR DOWLING THAT'S PATENTLY UNTRUE AND I RESENT IT FOR HIS PART HE BELIEVES VARIETY IS THE ONE THAT PANDERS TO ADVERTISERS VARIETY HAS BEEN THE FOCUS OF MOST OF THE ATTENTION BECAUSE IT HAS SEEN MANY TOP WRITERS LEAVE RECENTLY WHILE SOME HAVE TAKEN JOBS AT THE REPORTER OTHERS HAVE JOINED SUCH PUBLICATIONS AS THE LOS ANGELES TIMES AND NEWSWEEK WE HAVE VERY BRIGHT REPORTERS HERE AND A LOT OF PEOPLE ARE AFTER THEM MR BART SAYS ADDING THAT IN A STRANGE WAY THIS IS THE KIND OF TURNOVER I'M PROUD OF AMONG THE MOST NOTABLE VARIETY DEFECTIONS WAS THAT BY STAR BOXOFFICE SEER AND 30YEAR VARIETY VETERAN AD MURPHY WHO QUIT THE PAPER LAST MONTH AND SUBSEQUENTLY JOINED THE REPORTER MR MURPHY WHO'S A PIONEER IN THE TRACKING OF MOVIE RECEIPTS HAS WORKED OUT OF HIS SAN LUIS OBISPO HOME A FEW HOURS NORTHWEST OF LOS ANGELES SINCE LAST SUMMER I WANT A FULLTIME BOXOFFICE GUY HERE NOT SOMEONE WHO'S LIVING IN SAN LUIS OBISPO SAYS MR BART AFTER MR MURPHY'S DEPARTURE VARIETY RAN A STORY LATE LAST MONTH SAYING SOME OF HIS BOXOFFICE TOTALS WERE FLAWED SAYS MR MURPHY I DIDN'T WANT TO WORK THERE ANYMORE HE DEFENDS HIS TABULATIONS VARIETY EXECUTIVES INSINUATE THAT THE WRITERS WHO HAVE LEFT FOR POSTS AT THE REPORTER HADN'T BEEN PERFORMING UP TO SNUFF BUT THE REPORTER HARDLY SEES ITS NEW HIRES AS SECONDRATE REPLIES ITS EDITOR ALEX BEN BLOCK TODAY WE HAVE THE STABLE GROUP OF VETERAN REPORTERS THAT EVERYBODY KNOWS AND THEY DON'T WHILE MR BART CRITICIZES THE REPORTER'S NEWS JUDGMENT HE WAS AMAZED HE SAYS TO SEE A LAWSUIT INVOLVING THE THREE STOOGES MAKE ITS FRONT PAGE HE CONCEDES THAT HE'S LEARNED SOME THINGS FROM HIS RIVAL THE REPORTER DOES A BETTER JOB ON FILM AND TV PRODUCTION CHARTS HE NOTES VARIETY ALSO AIMS TO DO MORE SPECIAL REPORTS AN AREA WHERE THE REPORTER HAS A CLEAR LEAD STILL VARIETY BELIEVES ITS STANDARDS FOR SPECIALS ARE HIGHER WE'RE NOT INTERESTED IN DOING TRIBUTE TO THE 37TH EPISODE OF LAVERNE & SHIRLEY' SAYS NEAL VITALE VARIETY'S GENERAL MANAGER PEOPLE AT THE REPORTER SAY IT HAS BENEFITED FROM VARIETY'S COSTCUTTING IN THE LAST COUPLE OF YEARS ESPECIALLY THE RECENT DOWNSIZING OF VARIETY'S NEW YORK OFFICE MR BLOCK WHO SAYS HE WAS ASTOUNDED BY VARIETY'S MOVE IN NEW YORK NOTES THAT EDITORS ONCE GOT SCOOPS BY SCHMOOZING AT MANHATTAN MEDIA COCKTAIL PARTIES BUT NOW THEY'VE GIVEN THAT UP RUMORS SWIRLED AFTER THE NEW YORK CUTS AND COMMENTS BY VARIETY EXECUTIVES THAT WEEKLY VARIETY MIGHT BE SCALED BACK TO TWICEAMONTH DURING SUMMERS AN IDEA LATER DROPPED MR BART WHO SAYS THE MONDAY ISSUE IS HERE TO STAY CALLS IT VERY HEALTHY THIS YEAR WITH REVENUE CONSIDERABLY HIGHER THAN A YEAR AGO HE DISMISSES SPECULATION THAT THE NEW YORK CUTS REFLECT DIRECT COSTCUTTING ORDERS FROM CAHNERS IT SIMPLY MADE SENSE TO HAVE THE DAILY AND WEEKLY VARIETY EDITIONS SHARE ONE EDITING STAFF IN LOS ANGELES HE SAYS I THINK THIS IS JUST BETTER JOURNALISM BEFORE IT WAS LUNACY 9309080073 930908 REVIEW & OUTLOOK EDITORIAL HOUSE REVOLUTION AT NOON EDT TODAY VIEWERS OF CSPAN MAY WITNESS AN EXTRAORDINARY EVENT TWO GROUPS OF HOUSE MEMBERS WILL FORM NEAR THE CLERK'S DESK AT THE FRONT OF THE CHAMBER ONE WILL BE ADDING THEIR NAMES TO A LIST THAT WOULD END THE GAG RULE ON A PROCEDURE CALLED THE DISCHARGE PETITION THE OTHER GROUP HEAVILY PRESSURED BY HOUSE LEADERS TO PRESERVE CONGRESS'S CODE OF SECRECY WILL BE REMOVING THEIR NAMES FROM THE SAME LIST OVER THE LABOR DAY RECESS ANGRY VOTERS PROMPTED AT LEAST ANOTHER 13 MEMBERS TO AGREE TO ADD THEIR NAMES TO OKLAHOMA REP JIM INHOFE'S LIST CALLING FOR AN END TO SECRECY ON DISCHARGE PETITIONS AT RECESS HE ALREADY HAD 211 NAMES SO THIS WOULD PUT HIM WELL OVER THE 218 MAJORITY HE NEEDS TO FORCE A VOTE ON HIS PROPOSAL BUT HOUSE LEADERS WANT TO PRESERVE THE PRESENT RULES WHICH ALLOW THEM TO BOTTLE UP POPULAR LEGISLATION AND THEN KEEP VOTERS IN THE DARK SO LEADERS ARE CALLING IN HEAVY ARTILLERY TO GET MEMBERS TO REMOVE THEIR NAMES AT ONE POINT BEFORE THE RECESS REP INHOFE WAS ONE NAME SHORT OF A MAJORITY BUT THE LEADERS PRESSURED SIX SIGNERS TO RECANT WHILE YESTERDAY AFTERNOON REP INHOFE WAS BUILDING FURTHER MOMENTUM THE ISSUE TODAY COULD GO EITHER WAY IF THE INHOFE PETITION SUCCEEDS WE'RE TALKING HERE ABOUT A REVOLUTION IN THE HOUSE OF REPRESENTATIVES DISCHARGE PETITIONS WORK AS FOLLOWS OFTEN A COMMITTEE WILL SIMPLY SIT ON A BILL IT KNOWS WOULD PASS IF ALLOWED TO COME TO A VOTE ON THE FLOOR THE ONLY WAY TO FREE HOSTAGE BILLS IS TO CONVINCE 218 MEMBERS TO SIGN A PETITION TO DISCHARGE THE BILL FROM COMMITTEE AND FORCE A VOTE BUT THE NAMES ON ANY PETITION ARE KEPT SECRET SO MEMBERS CAN POSTURE IN FAVOR OF A POPULAR BILL WHILE QUIETLY MAKING CERTAIN IT IS NEVER VOTED ON AND AS A DISCHARGE PETITION NEARS THE MAGIC NUMBER OF 218 HOUSE LEADERS ROUTINELY TWIST THE ARMS OF PLIABLE MEMBERS AND FORCE THEM TO REMOVE THEIR NAMES THE RESULT COMMITTEE CHAIRMEN HAVE A STRANGLEHOLD ON WHAT LEGISLATION IS VOTED ON AND BOTH ORDINARY MEMBERS AND THEIR CONSTITUENTS ARE DISENFRANCHISED RISKING POSSIBLE DISCIPLINE FOR BREAKING THE TRADITIONS OF THE HOUSE REP INHOFE GAVE US HIS LIST AND LAST MONTH WE PUBLISHED THE NAMES OF NONSIGNERS THE EFFECT WAS ELECTRIC WE HAD PROMISED THE LIST BUT IT TOOK A FEW DAYS TO SORT OUT OUR PHONES LIT UP WITH CALLS ABOUT THE DELAY MEMBERS HAVE BEEN DELUGED WITH QUESTIONS ABOUT WHY THEY WERE ON THE LIST REP MARTIN MEEHAN A MASSACHUSETTS DEMOCRAT CALLS THE INTEREST IN SUCH INSIDE CONGRESSIONAL BASEBALL EXTRAORDINARY HE HAS DECIDED TO JOIN MR INHOFE REJECTING THE ADVICE OF REP JOE MOAKLEY THE POWERFUL RULES COMMITTEE CHAIRMAN FROM HIS HOME STATE ALL THE MORE AMAZING ALL THIS TOOK PLACE BENEATH THE ATTENTION OF THE CONGRESSIONAL PRESS CORPS THE DISCHARGE PETITION MOVEMENT HAS BEEN COVERED BY ROLL CALL CONGRESS'S HOMETOWN PAPER AND ONE ASSOCIATED PRESS STORY THE PUBLIC WAS INFORMED ALMOST EXCLUSIVELY BY US RADIO TALK SHOWS SUCH AS RUSH LIMBAUGH'S GRASSROOTS ACTIVISTS LINKED TO ROSS PEROT AND COMPUTER BULLETIN BOARDS INTERESTINGLY RICHARD COHEN A LIBERAL WASHINGTON POST COLUMNIST HAS JUST WRITTEN A COLUMN SAYING THAT RADIO TALK SHOWS ARE CLEARLY FILLING A VOID BECAUSE THEIR AUDIENCES BELIEVE THEIR VALUES ARE NOT REFLECTED ELSEWHERE MR COHEN SAYS THE FEAR OF SAYING SOMETHING THAT MIGHT BE ATTACKED AS RACIST OR SEXIST IS SO ACUTE THAT THE MAINSTREAM MEDIA HAS STOPPED COVERING SOME SUBJECTS CHOOSING DISCRETION OVER VALOR RULES CHAIRMAN MOAKLEY IS FEELING THE HEAT HIMSELF A GROUP OF ROSS PEROT SUPPORTERS ARE HOLDING A 24HOURADAY VIGIL OUTSIDE HIS BOSTON OFFICE AND WILL HOLD A MASS RALLY THERE SATURDAY HIS AIDES TOLD ROLL CALL THAT IT'S ALMOST IMPOSSIBLE TO ARGUE AGAINST SOMETHING THAT IS SEEN AS OPENNESS IN GOVERNMENT MR MOAKLEY OF COURSE UNDERSTANDS HIS OWN POWER WILL BE VASTLY REDUCED IF HE HAS TO OPERATE IN DAYLIGHT SO HE HAS TO COME UP WITH SOME ARGUMENTS SO HE OFFERS THE LUDICROUS PROPOSITION THAT OPENNESS WOULD HELP LOBBYISTS WHO IN THE REAL WORLD LOVE THE DARK AND HE COMPLAINS THE PRESSURE GROUPS ARE OUT THERE AT TOWN MEETINGS LOUD AND RESTLESS AND IT'S IMPOSSIBLE TO MAKE THEM SIT THROUGH AN EXPLANATION THE PRESSURE GROUPS HE CRITICIZES ARE THE VOTERS UNDERSTANDABLY IMPATIENT WITH HIS EXPLANATIONS SO CHAIRMAN MOAKLEY HAS COME UP WITH A CLEVER DIVERSIONARY TACTIC URGING MEMBERS TO TEMPORARILY WITHDRAW THEIR NAMES FROM THE PETITION UNTIL HIS COMMITTEE FINISHES HEARINGS ON THE ISSUE LATER THIS MONTH IT JUST WORKS OUT THAT UNDER BIZARRE HOUSE RULES THE TIMING IS SUCH THAT IF IT WAITS FOR HEARINGS THE SECRECY ISSUE CAN'T REACH THE HOUSE FLOOR UNTIL OCTOBER 11 AND CONGRESS IS SET TO ADJOURN OCTOBER 8 IF ANY MEMBERS CLAIM THEY'RE REMOVING THEIR NAMES TEMPORARILY IT'S THE EQUIVALENT OF TEMPORARILY KILLING SOMEONE VOTERS ARE UNDERSTANDABLY UPSET AT AN ENTRENCHED POLITICAL CLASS SEEKING ITS OWN INTEREST INSTEAD OF REPRESENTING THEIRS OPENING UP THE DISCHARGE PETITION IS A SMALL STEP TOWARD OPENNESS AND ACCOUNTABILITY IN GOVERNMENT BUT AN IMPORTANT ONE IF AT NOON TODAY CONGRESS BALKS IT WOULD NOT BE A HEALTHY DEVELOPMENT FOR EITHER THE MEMBERS OR THE BODY POLITIC 9309080072 930908 INTERNATIONAL GERMANY'S AUGUST STEEL OUTPUT WIESBADEN GERMANY GERMANY'S STEEL OUTPUT ROSE 03 IN AUGUST TO 333 MILLION TONS BUT PRODUCTION FOR THE FIRST SEVEN MONTHS OF 1993 LAGGED FAR BEHIND THE SAME PERIOD IN 1992 THE FEDERAL STATISTICS OFFICE REPORTED FROM JANUARY THROUGH AUGUST 2507 MILLION TONS OF STEEL WERE PRODUCED IN GERMANY 95 LESS THAN FOR THE SAME PERIOD IN 1992 THE OFFICE SAID THE BULK OF GERMAN STEEL PRODUCTION REMAINS IN THE WEST WHERE 303 MILLION TONS WERE PRODUCED IN AUGUST 02 LESS THAN THE SAME MONTH LAST YEAR WESTERN GERMAN STEEL OUTPUT FELL FOR THE SEVEN MONTHS TO 2315 MILLION TONS A 101 DROP FROM THE SAME PERIOD LAST YEAR EASTERN GERMAN OUTPUT FOR AUGUST TOTALED 290000 TONS UP 58 FROM THE SAME MONTH IN 1992 BUT PRODUCTION FOR THE FIRST SEVEN MONTHS WAS DOWN 13 TO 192 MILLION TONS 9309080071 930908 NOTICE TO READERS QUOTES FOR NASDAQ SMALL CAP ISSUES WERE INCOMPLETE AT PRESSTIME 9309080070 930908 NVIRO RECOVERY TO BUY KIGER HOUSTON NVIRO RECOVERY INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE KIGER INDUSTRIAL SERVICES A SERVICER OF INDUSTRIAL ORGANIC SLUDGE GENERATORS IN PRARIEVILLE LA TERMS WEREN'T DISCLOSED UNDER THE PACT KIGER WILL BECOME A UNIT OF NVIRO'S EXISTING BIOSOLIDS MANAGEMENT DIVISION CDR ENVIRONMENTAL 9309080069 930908 INTERNATIONAL FOR ISRAEL NO PUSH FOR PEACE WITH SYRIA NATION APPEARS TO NEED TIME TO ADJUST TO PLO PACT BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM IN A FLUSH OF OPTIMISM AFTER THE ISRAELIS AND PALESTINIANS ANNOUNCED THEY HAD AGREED TO NEGOTIATE PALESTINIAN SELFRULE IN THE OCCUPIED TERRITORIES EXPECTATIONS MOUNTED THAT A BREAKTHROUGH WITH SYRIA WAS IMMINENT TOO IT HASN'T WORKED OUT THAT WAY BUT FROM THE ISRAELI POINT OF VIEW THAT'S JUST FINE WE HAVE ENOUGH DIFFICULTIES TRYING TO CONVINCE THE PUBLIC THAT THE AGREEMENT WE GOT WITH THE PALESTINIANS CAN BE IMPLEMENTED WITHOUT GRAVE SECURITY PROBLEMS WITHOUT ADDING AN AGREEMENT WITH THE SYRIANS TO THE TABLE SAYS NISSIM ZVILLI THE RULING LABOR PARTY'S SECRETARYGENERAL I'M AFRAID THIS WOULD BE TOO MUCH FOR PUBLIC OPINION TO SWALLOW IN THE SAME WEEK OR EVEN IN THE SAME MONTH POLICE SAID 50000 ISRAELI OPPONENTS OF THE PEACE PLAN SOME OF WHOM TRIED TO STORM PRIME MINISTER YITZHAK RABIN'S OFFICE DEMONSTRATED YESTERDAY IN JERUSALEM REUTERS REPORTED THE DEMONSTRATORS REJECTING THE POLICE COUNT SAID THEIR NUMBERS WERE FAR HIGHER MEETING YESTERDAY IN JERUSALEM WITH AMERICAN REPORTERS MR ZVILLI WHO ALSO SERVES ON THE SECURITY AND FOREIGN AFFAIRS COMMITTEE IN PARLIAMENT SAID HE DOESN'T THINK ISRAELIS ARE READY TO CONSIDER COMPLETE WITHDRAWAL FROM THE GOLAN HEIGHTS WHICH ISRAEL CAPTURED FROM SYRIA DURING THE 1967 WAR SO SOON AFTER THE SHOCK OF THE DEAL WITH THE PALESTINIANS IT WASN'T A POLITICAL DECISION TO SLOW DOWN THE PACE OF THE NEGOTIATIONS WITH SYRIA AND WE WOULD BE HAPPY TO REACH AGREEMENT WITH THEM BUT FOR NOW THE PRICE IS VERY HIGH EVEN IN THE EYES OF THE LABOR PARTY SAYS MR ZVILLI UNTIL THE NEWS THAT THE ISRAELIS AND PALESTINIANS HAD AGREED TO ESTABLISH IMMEDIATE PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO THROUGH MONTHS OF SECRET NEGOTIATIONS MOST ISRAELIS HAD EXPECTED THE BREAKTHROUGH IN THE PEACE TALKS TO COME WITH THE SYRIANS ISRAEL'S LATEJULY OPERATION ACCOUNTABILITY BOMBARDMENT IN SOUTHERN LEBANON AND THE SUBSEQUENT CEASEFIRE HAMMERED OUT BETWEEN ISRAEL AND SYRIA WAS HERALDED AS THE FIRST IMPORTANT ARABISRAELI AGREEMENT IN THE TWOYEAROLD PEACE PROCESS AND TOUTED AS A SPRINGBOARD FOR A BROADER ISRAELISYRIAN TREATY BUT MR ZVILLI SAYS THE ISRAELIS SOON DISCOVERED THAT UNLIKE PALESTINE LIBERATION ORGANIZATION HEAD YASSER ARAFAT SYRIAN PRESIDENT HAFEZ ALASSAD WASN'T INTERESTED IN NEGOTIATING IN STAGES NOR WAS HE PREPARED TO SETTLE FOR ANYTHING LESS THAN THE ENTIRE GOLAN THE DEAL WITH THE PALESTINIANS SUCCEEDED SAYS MR ZVILLI PRECISELY BECAUSE BOTH SIDES WERE WILLING TO FUDGE LEAVING CRUCIAL ISSUES THAT COULD POSSIBLY DERAIL THE TALKS SUCH AS THE FUTURE OF JERUSALEM AND THE RETURN OF PALESTINIAN REFUGEES FOR A LATER STAGE WE FOUND WAYS TO EVADE THE PROBLEMS UNTIL A LATER STAGE HE SAID WITH THE SYRIANS SAYS MR ZVILLI THERE IS NO WAY AROUND THE FACT THAT ASSAD WON'T MAKE PEACE FOR LESS THAN THE WHOLE GOLAN AND HE WON'T DETAIL THE KIND OF PEACE HE WOULD BE WILLING TO MAKE RIGHT NOW ISRAELIS AREN'T READY TO PAY THAT PRICE MR ZVILLI SAID SIGNING AN AGREEMENT NOW WITH THE SYRIANS TO LEAVE THE GOLAN MIGHT GENERATE SUCH INTENSE PUBLIC OPPOSITION THAT IT COULD SPILL OVER AND ENDANGER THE WHOLE PEACE PROCESS INCLUDING THE AGREEMENT WITH THE PALESTINIANS ISRAELI AND SYRIAN NEGOTIATORS TOLD REPORTERS YESTERDAY IT IS UNLIKELY THEY WILL REACH AN AGREEMENT AT THE CURRENT ROUND OF PEACE TALKS IN WASHINGTON ISRAEL HAS REFUSED TO DISCUSS THE EXTENT OF WITHDRAWAL FROM THE GOLAN UNLESS SYRIA AGREES TO A FULL PEACE WITH ISRAEL INCLUDING TOURISM AND AN EXCHANGE OF EMBASSIES THE SYRIANS WON'T DISCUSS PEACE UNTIL ISRAEL COMMITS TO FULL WITHDRAWAL SYRIAN CHIEF NEGOTIATOR MOUWAFAQ ALALLAF SAID UNLESS WE SEE A SUDDEN CHANGE OF POSITION BY THE ISRAELI DELEGATION UNLESS WE SEE MORE SERIOUS AND CONSTRUCTIVE ATTITUDES TOWARD THESE CORE ISSUES I DON'T THINK THERE WILL BE ANY PROGRESS THE ISRAELI RIGHT WING IS CAPITALIZING ON THE FACT THAT THE GOVERNMENT KEPT NEGOTIATIONS WITH THE PALESTINIANS A SECRET FOR SO LONG CLAIMING THAT THERE IS ALSO A SECRET AGREEMENT WITH THE SYRIANS READY TO BE SIGNED THAT WOULD GIVE THE SYRIANS SOVEREIGNTY OVER THE GOLAN IN EXCHANGE FOR NORMALIZATION OF RELATIONS WITH ISRAEL THEY CONTEND THAT THE AGREEMENT WILL BE ANNOUNCED ONCE THE RABIN GOVERNMENT IS ABLE TO SELL THE NOTION OF GIVING UP THE GOLAN TO THE PUBLIC THE LOGIC OF THE DEAL WITH THE PALESTINIANS IS THAT GAZA IS INTOLERABLE AND PEOPLE HATE IT SO MUCH THAT YOU CAN SELL THEM ON CONCEDING JERICHO TOO SAYS YOSSI OLMERT AN EXPERT ON SYRIA AND AN ISRAELI DELEGATE TO THE PEACE TALKS UNDER THE FORMER LIKUD GOVERNMENT BUT YOU CAN'T SELL A DEAL ON THE GOLAN LIKE THAT AND RABIN IS CONCERNED THAT THE PRICE OF TRYING TO DO THAT NOW WOULD BE TOO HIGH THE DILEMMA NOW IS TO SIGNAL TO THE SYRIANS THAT ISRAEL HASN'T FORGOTTEN ABOUT THEM WITHOUT HAVING TO MAKE A DEAL PUBLIC YET MR ZVILLI ALSO CALLED FOR EVENTUAL ESTABLISHMENT OF AN ISRAELIPALESTINIAN CONFEDERATION OVER THE WEST BANK AND GAZA RATHER THAN A JORDANIANPALESTINIAN CONFEDERATION AS HAD BEEN SUGGESTED BY PALESTINIAN AND ISRAELI LEADERS IN THE PAST HE SAID ANY OTHER SOLUTION SUCH AS A PALESTINIAN STATE IN THE OCCUPIED TERRITORIES OR A PALESTINIANJORDANIAN ALLIANCE THERE WOULD REQUIRE FORCING JEWISH SETTLERS TO MOVE BACK WITHIN ISRAEL'S PRE1967 BORDERS A NOTION HE OPPOSES IT WOULD BE A TERRIBLE ACT TO EVACUATE 120000 PEOPLE IT'S A KIND OF TRANSFER MR ZVILLI SAID REFERING TO THE SLOGAN OF A RIGHTWING PARTY THAT ADVOCATES EXPELLING ARABS FROM ISRAEL THIS WOULD BE THE SEEDS OF THE NEXT WAR HE SAID BECAUSE IT IS THERE THAT THE NUCLEUS OF THE EXTREMISTS IN ISRAEL LIVE AND I DON'T BELIEVE WE WILL BE ABLE TO EVACUATE THEM 9309080068 930908 RULE OF LAW THE NEW CIVIL RIGHTS AGENDA BY MICHAEL S GREVE THREE MONTHS AFTER THE WITHDRAWAL OF LANI GUINIER'S ILLFATED NOMINATION PRESIDENT CLINTON HAS YET TO PRESENT ANOTHER NOMINEE TO HEAD THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION AN EXAMINATION OF THE GOVERNMENT'S POSITION IN THREE IMPORTANT CASES SHOWS THAT JUSTICE DID NOT NEED MS GUINIER TO PROMOTE DIVISIVE POLICIES BASED ON RACE AND GENDER HOLDER V HALL A CASE THE SUPREME COURT WILL HEAR IN THE COMING TERM EXAMINES WHETHER THE VOTING RIGHTS ACT PERMITS A CHALLENGE OF THE SINGLEMEMBER COMMISSION OF BLECKLEY COUNTY GA ON A VOTEDILUTION THEORY THIS THEORY IS COMMONLY USED TO DRAW ELECTORAL DISTRICT LINES THAT MAXIMIZE THE VOTING STRENGTH OF MINORITIES HOLDER IS AN ATTEMPT TO USE VOTEDILUTION TO INCREASE THE NUMBER OF OFFICES WITHIN A JURISDICTION ON THE THEORY THAT A MULTIMEMBER BODY WOULD ALLOW MINORITY VOTERS TO SELECT MINORITY CANDIDATES THE BUSH JUSTICE DEPARTMENT MAINTAINED THAT THE VOTING RIGHTS ACT DID NOT ALLOW SUCH A CHALLENGE IT ARGUED THAT UNDER THE THEORY ADVANCED BY THE PLAINTIFFS IN HOLDER COURTS WOULD ROUTINELY BE CALLED UPON TO REPLACE SINGLEMEMBER OFFICES WITH LARGER RACIALLY DIVERSE COMMISSIONS MS GUINIER IT MAY BE REMEMBERED FAVORED SUCH ALTERNATIVE VOTING ARRANGEMENTS AND THE CLINTON JUSTICE DEPARTMENT HAS NOW ENDORSED THEM THE GOVERNMENT'S BRIEF IN HOLDER MAKES NO EFFORT TO DEMONSTRATE THAT BLECKLEY COUNTY HAS DISCRIMINATED AGAINST BLACK VOTERS IT MAKES OUT VOTE DILUTION SIMPLY BY COMPARING THE EXISTING SINGLEMEMBER ARRANGEMENT TO A PROPOSED FIVEMEMBER BOARD WITH COMMISSIONERS ELECTED BY DISTRICTS SO THAT BLACKS WHO CONSTITUTE APPROXIMATELY 22 OF BLECKLEY'S RESIDENTS CAN ELECT THEIR COMMISSIONER CARRIED TO ITS LOGICAL CONCLUSION THIS THEORY WOULD ENTAIL THAT A STATE WITH A LARGE MINORITY POPULATION MIGHT NOT BE ABLE TO ELECT A GOVERNOR IN BENNETT V ARRINGTON BETTER KNOWN AS THE BIRMINGHAM FIREFIGHTERS CASE THE CLINTON ADMINISTRATION IS URGING THE COURT OF APPEALS FOR THE ELEVENTH CIRCUIT TO AFFIRM A CONSENT DECREE MANDATING RACIAL HIRING AND PROMOTION GOALS FOR POLICE OFFICERS FIREFIGHTERS AND CITY ENGINEERS IN BIRMINGHAM ALA THE CONSENT DECREE WAS ORIGINALLY ENTERED IN 1981 AS THE RESULT OF A LAWSUIT FILED BY THE LOCAL NAACP ALLEGING THAT BIRMINGHAM HAD ENGAGED IN DISCRIMINATORY HIRING AND PROMOTION PRACTICES LAST YEAR THE BUSH JUSTICE DEPARTMENT ASKED THE COURT TO REPLACE CERTAIN HIRING GOALS CONTAINED IN THE 1981 DECREE WITH MORE NEUTRAL NONDISCRIMINATORY SELECTION PROCEDURES THE GOVERNMENT ALSO URGED THAT ANY REMAINING GOALS BE BASED ON THE NUMBER OF APPLICANTS FOR PARTICULAR JOBS RATHER THAN ON THE COMPOSITION OF THE LOCAL LABOR POOL THE CLINTON ADMINISTRATION TAKES THE OPPOSITE TACK IT WANTS BIRMINGHAM TO MAINTAIN A GOAL OF HIRING BLACKS AND WOMEN IN EACH JOB CLASSIFICATION IN EACH DEPARTMENT OF THE CITY OF BIRMINGHAM IN PERCENTAGES WHICH APPROXIMATE THEIR RESPECTIVE PERCENTAGES IN THE CIVILIAN LABOR FORCE OF JEFFERSON COUNTY THE ADMINISTRATION ARGUES THAT THIS EXTRAORDINARY REMEDY A RAW QUOTA IS BOTH NECESSARY AND LAWFUL IN LIGHT OF BIRMINGHAM'S EGREGIOUS HISTORY OF DISCRIMINATION ONE WOULD THINK THAT MORE THAN A DECADE OF ACTIVE COURT SUPERVISION SHOULD HAVE RECTIFIED THE RACIST PAST OR AT LEAST ABSOLVED THE CITY FROM RESPONSIBILITY FOR THE VESTIGES OF RACISM IN ANY EVENT THE GENERALIZED ASSERTION OF EGREGIOUS DISCRIMINATION IN THE DISTANT PAST IS INSUFFICIENT TO JUSTIFY THE PROPOSED QUOTA SCHEME FOUR YEARS AGO IN CITY OF RICHMOND V CROSON THE SUPREME COURT HELD THAT STATE AND LOCAL GOVERNMENTS MUST IDENTIFY DISCRIMINATION WITH SOME SPECIFICITY BEFORE THEY MAY USE RACECONSCIOUS RELIEF THE JUSTICE DEPARTMENT DEALS WITH THIS CENTRAL PRINCIPLE OF CIVIL RIGHTS LAW IN A MOST CONVENIENT THOUGH NOT PARTICULARLY IMAGINATIVE WAY IT DENIES THAT CROSON REQUIRES PARTICULARIZED FORMAL FINDINGS OF DISCRIMINATION A BIT MORE SUBTLE BUT IN THE END NO MORE CONVINCING IS THE JUSTICE DEPARTMENT'S ATTEMPT TO STAGE AN ENDRUN AROUND BRAY V ALEXANDRIA WOMEN'S HEALTH CLINIC THE SUPREME COURT'S HOLDING LAST TERM THAT THE FEDERAL KLAN ACT WHICH PROHIBITS CONSPIRACIES TO DEPRIVE CITIZENS OF THEIR CIVIL RIGHTS CANNOT BE USED BY COURTS TO ENJOIN PROTESTS AT ABORTION CLINICS THE BUSH JUSTICE DEPARTMENT HAD ADVANCED THE SAME POSITION IN AN AMICUS BRIEF HOWEVER IN A VERY SIMILAR CASE ARISING OVER AN OPERATION RESCUE BLOCKADE OF AN ABORTION CLINIC IN WICHITA FEDERAL DISTRICT JUDGE PATRICK KELLY PROHIBITED THE PROTESTERS FROM BLOCKING ACCESS TO THE CLINIC AND FOUND THAT OPERATION RESCUE IN VIOLATION OF THE KLAN ACT HAD CONSPIRED TO DEPRIVE WOMEN AS A CLASS OF THEIR RIGHT TO INTERSTATE TRAVEL THE CLINTON ADMINISTRATION DEFENDS THIS HOLDING AND MAINTAINS THAT THE WICHITA ABORTION PROTESTERS DISCRIMINATE AGAINST WOMEN AS A CLASS THIS ARGUMENT WAS EXPLICITLY REJECTED BY THE SUPREME COURT IN BRAY JUSTICE ANTONIN SCALIA POINTED OUT THAT WHATEVER ONE THINKS OF ABORTION IT CANNOT BE DENIED THAT THERE ARE COMMON AND RESPECTABLE REASONS FOR OPPOSING IT OTHER THAN HATRED OF OR CONDESCENSION TOWARD WOMEN AS A CLASS UNDAUNTED THE CLINTON JUSTICE DEPARTMENT ARGUES THAT THE WICHITA PROTESTERS PREVENTED ALL PATIENTS PREGNANT OR NOT FROM ENTERING THE CLINIC THEREBY PROVING THEIR ANIMUS AGAINST WOMEN IN BRAY THE COURT ALSO REJECTED THE ARGUMENT THAT THE PROTESTERS IMPEDED WOMEN'S RIGHT TO INTERSTATE TRAVEL IT HELD THAT THE PROLIFE PROTESTERS OPPOSE ABORTION AND IT IS IRRELEVANT TO THEIR OPPOSITION WHETHER THE ABORTION IS PERFORMED AFTER INTERSTATE TRAVEL STILL IN THE WICHITA CASE THE JUSTICE DEPARTMENT ARGUES THAT THE PROTESTERS DID IMPEDE INTERSTATE TRAVEL BECAUSE THEY TARGETED A CLINIC THAT SERVES A LARGE NUMBER OF OUTOFSTATE CLIENTS THIS DISTINCTION TOO IS SPECIOUS UNDER BRAY THE RIGHT TO INTERSTATE TRAVEL IS VIOLATED ONLY IF A DEFENDANT ERECTS BARRIERS TO INTERSTATE MOVEMENT OR TREATS INTERSTATE TRAVELERS DIFFERENTLY THAN STATE RESIDENTS THERE IS NO EVIDENCE THAT THE WICHITA PROTESTERS DID SO THE JUSTICE DEPARTMENT'S POSITION IN ALL THREE CASES ILLUSTRATES THE CLINTON ADMINISTRATION'S RADICAL CIVIL RIGHTS POLICIES DURING MS GUINIER'S NOMINATION FIGHT THE ADMINISTRATION AVOIDED AN OPEN PUBLIC DEBATE OVER ITS AGENDA AND INSTEAD DUMPED A NOMINEE WHO HAD BEEN PICKED PRECISELY FOR HER COMMITMENT TO IT SOMEWHAT CHASTENED THE ADMINISTRATION MAY NOW NOMINATE A CANDIDATE WITH A MORE MODERATE STYLE THEREBY AGAIN AVOIDING A SUBSTANTIVE DEBATE HOWEVER THE DEPTH OF ITS COMMITMENT TO QUOTAS AND PREFERENCES MAKES IT UNLIKELY THAT THE ADMINISTRATION WILL BE ABLE TO OBSCURE ITS AGENDA MUCH LONGER EVENTUALLY IT WILL HAVE TO DEFEND IT MR GREVE IS EXECUTIVE DIRECTOR OF THE CENTER FOR INDIVIDUAL RIGHTS A PUBLIC INTEREST LAW FIRM IN WASHINGTON DC 9309080067 930908 FFY FINANCIAL STOCK BUYBACK YOUNGSTOWN OHIO FFY FINANCIAL CORP HOLDING COMPANY FOR FIRST FEDERAL SAVINGS BANK OF YOUNGSTOWN SAID IT INTENDS TO REPURCHASE ABOUT 5 OF ITS SHARES IN THE OPEN MARKET OVER THE NEXT SIX MONTHS BEGINNING AS SOON AS SEPT 13 CHAIRMAN CHARLES SHELLOGG SAID DIRECTORS APPROVED THE REPURCHASE IN VIEW OF THE STOCK'S CURRENT PRICE LEVEL AND FIRST FEDERAL'S STRONG CAPITAL POSITION FFY WHICH WENT PUBLIC JUNE 28 AT 10 A SHARE HAS 66 MILLION SHARES OUTSTANDING IT WAS QUOTED YESTERDAY AT 14 UP 125 CENTS IN OVERTHECOUNTER TRADING 9309080066 930908 BUSINESS BRIEF NATIONAL DATA CORP CONCERN TO PAY 7 MILLION TO SETTLE SHAREHOLDERS' SUIT NATIONAL DATA CORP SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE A CLASSACTION SHAREHOLDERS' SUIT FOR 7 MILLION THE ATLANTA DATAPROCESSING COMPANY SAID ITS COST AFTER INCOME TAXES AND INSURANCE PROCEEDS WILL BE ABOUT 15 MILLION WHICH WILL BE REFLECTED AS A ONETIME CHARGE TO CURRENTQUARTER RESULTS IN THE SECOND QUARTER ENDED NOV 30 1992 NATIONAL DATA HAD NET INCOME OF 17 MILLION OR 14 CENTS A SHARE ON REVENUE OF 50 MILLION NATIONAL DATA SAID IT WAS SUED IN APRIL 1990 BY INVESTORS WHO CLAIMED IT AND SEVERAL FORMER OFFICERS ISSUED FALSE AND MISLEADING STATEMENTS CONCERNING THE COMPANY'S FINANCIAL CONDITION THUS INFLATING ITS STOCK PRICE THE COMPANY AND INDIVIDUAL DEFENDANTS DIDN'T DO ANYTHING WRONG AND HAVE MERITORIOUS DEFENSES TO THE ALLEGATIONS MADE BY THE PLAINTIFFS NATIONAL DATA SAID HOWEVER WE ALSO BELIEVE THAT THIS SETTLEMENT IS IN THE BEST INTERESTS OF THE COMPANY 9309080065 930908 WHO'S NEWS RAYTHEON CO RAYTHEON CO LEXINGTON MASS JACK BRALY RESIGNED AS PRESIDENT OF BEECH AIRCRAFT CORP AN AIRCRAFT MAKING UNIT MR BRALY WHOSE RESIGNATION IS IMMEDIATE COULDN'T BE REACHED FOR COMMENT HE HAD BEEN WITH THE COMPANY SINCE 1978 AND PRESIDENT SINCE 1991 HIS DUTIES WILL BE ASSUMED BY ARTHUR E WEGNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BEECH WHO JOINED THE COMPANY IN JULY BEECH SAID 9309080064 930908 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9309080063 930908 GOTTSCHALKS AUGUST SALES FALL FRESNO CALIF GOTTSCHALKS INC SAID AUGUST SALES SLIPPED TO 236 MILLION FROM 239 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR FELL 4 THE DEPARTMENT STORE RETAILER SAID 9309080062 930908 BUSINESS BRIEF CARREFOUR SA TWO US HYPERMARKETS' ARE SCHEDULED FOR CLOSURE FRENCH RETAILER CARREFOUR SA SAID IT WILL CLOSE ITS TWO US HYPERMARKETS BECAUSE OF POOR PROFIT MARGINS AND WILL LAY OFF 560 WORKERS IN THE NEXT TWO MONTHS THE RETAILER WHICH OWNS 210 RETAIL STORES WORLDWIDE WILL LAY OFF 370 WORKERS IN NORTHEAST PHILADELPHIA AND 190 IN VOORHEES NJ SAID CLAUDE LASRY VICE PRESIDENT OF FINANCE AND ADMINISTRATION FOR CARREFOUR'S US UNIT HYPERMARKETS ARE LARGE SUPERMARKETS OFFERING A WIDE RANGE OF PRODUCTS FROM FOOD TO CONSUMER GOODS WE WERE NOT ABLE TO ACHIEVE ECONOMIES OF SCALE WITH ONLY TWO STORES SAID MR LASRY WHO ALSO CITED THE SLUGGISH ECONOMY'S EFFECT ON SALES MR LASRY SAID ABOUT 90 MANAGERIAL EMPLOYEES WILL BE INVITED TO APPLY FOR POSITIONS AT OVERSEAS STORES AND SAID HE DIDN'T KNOW OF PLANS TO CLOSE STORES OUTSIDE THE US WE ARE ACTUALLY EXPANDING HE SAID CITING THE RECENT LAUNCH OF HYPERMARKETS IN ITALY AND TURKEY 9309080061 930908 ABREAST OF THE MARKET STOCKS DROP AS ECONOMIC WORRIES SET OFF ROUND OF PROFITTAKING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PROFITTAKING ON ECONOMIC WORRIES HACKED AWAY AT STOCK PRICES CLOBBERING BIG BOARD SHARES AND WREAKING EVEN MORE HAVOC ON NASDAQ MARKET ISSUES TRADERS SAY SEVERAL ROUNDS OF COMPUTERGUIDED PROGRAM SELLING BROADSIDED EQUITIES SENDING A MODERATELY WEAK SESSION INTO A TAILSPIN IN LATE ACTION THE DOW JONES INDUSTRIAL AVERAGE DROPPED 2683 POINTS OR 074 TO FINISH AT 360710 THE STANDARD & POOR'S 500STOCK INDEX GAVE UP 282 POINTS OR 061 TO 45852 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 163 POINTS OR 064 TO END AT 25459 BIG BOARD DECLINERS SWAMPED ADVANCING ISSUES 1239 TO 763 ON VOLUME OF 229320000 SHARES ON FRIDAY JUST 195920000 SHARES CHANGED HANDS IN THIN PREHOLIDAY TRADING BATTERED TECHNOLOGY STOCKS TUGGED NASDAQ ISSUES SUBSTANTIALLY LOWER AFTER FIVE RECORDSETTING CLOSES LAST WEEK THE NASDAQ COMPOSITE INDEX PLUMMETED 1036 POINTS OR 138 TO FINISH AT 73935 GIVING UP MORE THAN HALF OF THE 212 GAINED LAST WEEK I THINK THERE'S A LOT OF CONCERN ABOUT THE ECONOMY AT THIS POINT AFTER ALL THE SOFT NUMBERS LAST WEEK SAID JOHN PARASCO SENIOR VICE PRESIDENT OF TRADING AT LEHMAN BROTHERS LAST WEEK'S DISAPPOINTING DATA INCLUDED AUGUST EMPLOYMENT FIGURES JULY FACTORY ORDERS AND THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS' AUGUST INDEX SIMMERING BOND PRICES DID LITTLE TO HEARTEN STOCK INVESTORS EQUITIES DIDN'T FOLLOW THE LONG BOND'S 3/4POINT JUMP ON TUMBLING COMMODITY PRICES AND THE POOR ECONOMIC NEWS BUT INSTEAD TOOK THEIR CUE FROM THE NEWS ITSELF THE 30YEAR BOND'S YIELD FELL TO 589 BUT TRADERS SUCH AS LEHMAN'S MR PARASCO SAID THE WEALTH OF OTHER NEGATIVES DOESN'T BODE WELL FOR CONSUMER CONFIDENCE ASIDE FROM THE ECONOMIC REPORTS WHICH HE SAID HIT CYCLICAL ISSUES HARD HE ALSO MENTIONED FALLING PRICES FOR PRECIOUS METALS AND CRUDE OIL TRADERS SAID ACTION FOR THE REST OF THE WEEK SHOULD PICK UP AS MARKET PLAYERS DRIFT BACK TO WORK BUT THEY DON'T EXPECT ANY MORE MAJOR MOVES AHEAD OF FRIDAY'S RELEASE OF AUGUST PRODUCER PRICES IN INDIVIDUAL COMPANY NEWS BAROID ROSE 3/4 TO 8 3/8 ON HEAVY VOLUME OF ABOUT 32 MILLION SHARES MORE THAN 11 TIMES ITS AVERAGE LEVEL THE COMPANY HAS REACHED A DEFINITIVE AGREEMENT TO MERGE WITH DRESSER INDUSTRIES IN A DEAL VALUED AT ABOUT 900 MILLION DRESSER LOST 1/4 TO 22 1/2 MINING AND METALS STOCKS CAME UNDER PRESSURE AND PEPPERED THE MOSTACTIVE LIST ON TUMBLING GOLD PRICES HOMESTAKE MINING WAS OFF 2 1/8 TO 16 1/4 SUNSHINE MINING FELL 3/8 TO 2 1/8 PLACER DOME 1 3/4 TO 18 1/4 AND AMERICAN BARRICK 2 TO 22 GOLD FOR OCTOBER WAS QUOTED AT 35080 AN OUNCE DOWN 1450 SILVER ALSO LOST GROUND FALLING 22 CENTS TO 433 AN OUNCE ENERGY FUTURES PLUNGED SENDING OIL STOCKS SPIRALING DOWNWARD ATLANTIC RICHFIELD FOR INSTANCE DROPPED 1 1/4 TO 115 CHEVRON GAVE UP 1 3/4 TO 92 AND PENNZOIL 2 TO 66 3/4 POTASH CORP OF SASKATCHEWAN GAINED 7/8 TO 20 1/4 THE COMPANY SAID IT HAS AGREED WITH RIO ALGOM TO PURCHASE SUBSTANTIALLY ALL THE POTASH OPERATIONS OF RIO ALGOM'S POTASH CO OF AMERICA DIVISION ADVANCED MICRO DEVICES SLUMPED 1 3/8 TO 27 5/8 FALLING FURTHER FOLLOWING DISCLOSURES BY THE COMPANY LATE THURSDAY REGARDING ITS MICROPROCESSOR DEVELOPMENT PROGRAM ADVANCED MICRO SAID ENGINEERS RESPONSIBLE FOR DEVELOPING MICROCODE SOFTWARE FOR THE COMPANY'S AM486SX MICROPROCESSOR HAD BEEN EXPOSED TO MICROCODE OR EMBEDDED SOFTWARE INSTRUCTIONS USED IN INTEL'S 386 CHIP INTEL DROPPED 3/4 TO 62 ON NASDAQ AS TECHNOLOGY STOCKS CAME UNDER PRESSURE FROM PROFITTAKING ADVANCED MICRO AND INTEL HAVE BEEN BATTLING EACH OTHER IN COPYRIGHT LITIGATION OVER ADVANCED MICRO'S USE OF INTEL MICROCODE ALSO ON NASDAQ MICROSOFT FELL 1 TO 74 3/4 ON A REPORT THAT THE EUROPEAN COMMUNITY PLANS TO INVESTIGATE CHARGES OF UNFAIR TRADE PRACTICES LODGED BY ITS RIVAL NOVELL DELL COMPUTER STUMBLED 5/8 TO 17 1/2 CISCO SYSTEMS SANK 4 TO 43 3/8 IN HEAVY TRADING AND SYBASE LOST 4 1/2 TO 56 3/4 DEAN WITTER REYNOLDS ANALYST TIM MCCOLLUM INITIATED COVERAGE OF SYBASE WITH A NEUTRAL RATING TEXAS INSTRUMENTS SKIDDED 2 7/8 TO 75 ON THE BIG BOARD CALLAWAY GOLF DROPPED 4 1/8 TO 48 INVESTORS STARTED DUMPING THE STOCK AFTER A REPORT THAT THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PLANS TO SELL AS MANY AS ONE MILLION SHARES OF HIS STOCK OR MOST OF HIS STAKE IN CALLAWAY OVER THE NEXT 18 MONTHS APPLE COMPUTER ADDED 1/2 TO 26 1/4 ON NASDAQ THE COMPANY INTRODUCED THREE MULTIMEDIA UPGRADE KITS TAKING A BIG STRIDE INTO THE MARKET FOR MULTIMEDIA ACCESSORIES FOR ITS MAIN NEMESIS PERSONAL COMPUTERS USING INTEL'S MICROPROCESSORS ELSEWHERE SWEDEN'S AB VOLVO DROPPED 3 1/2 TO 57 3/4 THE COMPANY AND RENAULT OF FRANCE HAVE UNVEILED A LONGAWAITED MERGER PLAN THAT COULD CREATE A COMPANY BETTERPOSITIONED TO SURVIVE IN EUROPE'S INCREASINGLY COMPETITIVE CAR MARKET THE WALL STREET JOURNAL REPORTED THE COMPANIES SAID NO JOB CUTS WILL ACCOMPANY THE PLANNED MERGER CIRCUIT CITY CLIMBED 1 1/8 TO 25 5/8 AFTER SAYING THAT AUGUST SAMESTORE SALES ROSE 6 AND TOTAL SALES INCREASED 26 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 529 POINTS OR 115 TO 45628 9309080060 930908 BUSINESS BRIEF SUFFOLK BANCORP ACQUISITION IS PLANNED OF HAMPTONS BANCSHARES SUFFOLK BANCORP SAID IT AGREED TO ACQUIRE HAMPTONS BANCSHARES INC FOR ABOUT 123 MILLION IN CASH AND STOCK THE AGREEMENT BETWEEN THE TWO LONG ISLAND NY BANKING COMPANIES IS SUBJECT TO SHAREHOLDER APPROVAL AND REGULATORY CLEARANCE THE AGREEMENT CALLS FOR HAMPTONS SHAREHOLDERS TO RECEIVE 1450 A SHARE OR 06744 SUFFOLK SHARE FOR EACH HAMPTONS SHARE SUFFOLK WILL PAY CASH FOR 25 OF THE SHARES HAMPTONS WHICH HAD ABOUT 1704 MILLION IN ASSETS AT JUNE 30 HAS ABOUT 845000 SHARES OUTSTANDING SUFFOLK BASED IN RIVERHEAD NY SAID IT WOULD MAKE AN ADDITIONAL PAYMENT TO HAMPTONS SHAREHOLDERS IF REALESTATE SALES MADE PRIOR TO COMPLETION OF THE ACQUISITION EXCEED SUFFOLK'S ESTIMATE OF THEIR VALUE SUCH CONSIDERATION COULD AMOUNT TO AS MUCH AS AN ADDITIONAL 146 A SHARE SUFFOLK SAID AT JUNE 30 SUFFOLK HAD ABOUT 6123 MILLION IN ASSETS 9309080059 930908 SUNBANKS CONSOLIDATION ORLANDO FLA SUNBANKS INC SAID IT WILL COMBINE SUNBANK & TRUST WHICH OPERATES IN HERNANDO AND CITRUS COUNTIES WITH SUNBANK OF PASCO COUNTY THE COMPANY SAID JAMES KIMBROUGH PRESIDENT AND CHIEF EXECUTIVE OF SUNBANK & TRUST HAS ASSUMED THAT POSITION AT SUNBANK OF PASCO COUNTY IT SAID JOHN BATSCH FORMER PRESIDENT OF SUNBANK OF PASCO COUNTY HAS BEEN REASSIGNED TO A HOLDING COMPANY IN ORLANDO SUNBANKS A UNIT OF SUNTRUST BANKS INC SAID THE NEW BANK IS EXPECTED TO HAVE MORE THAN 900 MILLION IN ASSETS WHEN THE CONSOLIDATION IS COMPLETED 9309080058 930908 BUSINESS BRIEF FOUR SEASONS HOTELS LTD CHAIRMAN PRESIDENT PLANS TO REDUCE CONTROLLING STAKE FOUR SEASONS HOTELS LTD SAID ITS CONTROLLING SHAREHOLDER ISADORE SHARP PLANS TO SELL A PORTION OF HIS HOLDING REDUCING HIS VOTING CONTROL IN THE COMPANY TO 714 FROM 751 FOUR SEASONS SAID MR SHARP WHO IS THE TORONTO COMPANY'S CHAIRMAN AND PRESIDENT PLANS TO SELL 210000 SUBORDINATE VOTING SHARES REPRESENTING ABOUT 1 OF THE TOTAL OUTSTANDING AND 790000 MULTIPLE VOTING SHARES OR ABOUT 142 OF THOSE OUTSTANDING THE SHARP FAMILY OWNS ALL THE FOUR SEASONS MULTIPLE VOTING SHARES THE SUBORDINATE VOTING SHARES WHICH CARRY ONE VOTE EACH WILL BE SOLD TO THE PUBLIC THE MULTIPLE VOTING SHARES WITH 12 VOTES EACH WILL BE SOLD PRIVATELY AFTER THE SALE THE MULTIPLE VOTING SHARES WILL AUTOMATICALLY CONVERT TO SUBORDINATE VOTING SHARES THE COMPANY SAID FOUR SEASONS SAID THE SHARES ARE BEING SOLD IN ORDER TO ALLOW THE SHARP FAMILY TO ACHIEVE CERTAIN FINANCIAL AND ESTATE PLANNING OBJECTIVES 9309080057 930908 ADVANCE CIRCUITS PURCHASE MINNETONKA MINN ADVANCE CIRCUITS INC SAID IT HAS COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF TARGITTRONICS INC A MELBOURNE FLA ASSEMBLER OF FLEXIBLE CIRCUITS THE COMPANY SAID THAT IT ISSUED 425000 COMMON SHARES FOR ALL THE OUTSTANDING SHARES OF TARGITTRONICS 9309080056 930908 TUESDAY'S MARKETS LONG BOND SOARS RATE HITS 589 STOCKS SLUMP IN LATE COMPUTER TRADING DOLLAR POSTS DECLINE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS CONTINUED TO SWARM INTO THE BOND MARKET BOOSTING PRICES AND SENDING LONGTERM INTEREST RATES TO NEW LOWS STOCKS SLUMPED DESPITE THE DECLINE IN RATES AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 2683 POINTS TO 360710 HIT BY REPEATED WAVES OF COMPUTERGUIDED PROGRAM SELLING LATE IN THE DAY STANDARD & POOR'S 500STOCK INDEX SLID 282 TO 45852 AND THE NASDAQ COMPOSITE INDEX TUMBLED 1036 TO 73935 BREAKING A FIVEDAY WINNING STREAK ON A BARRAGE OF TECHNOLOGYRELATED SELLING STOCKS DECLINED EVEN AS INVESTORS RUSHED TO BUY BONDS DRIVING THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND TO 589 FROM 594 FRIDAY ECONOMISTS SAID A PRECIPITOUS DROP IN GOLD AND OIL PRICES HELPED TRIGGER THE LATEST LEG IN A STUNNING WEEKLONG RALLY THAT HAS DRIVEN THE YIELD ON THE 30YEAR BOND BELOW 6 CERTAINLY WHAT HAS BEEN HAPPENING TO COMMODITY PRICES HAS NOT GONE UNNOTICED SAID STEPHEN SLIFER CHIEF FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS YESTERDAY DECEMBER GOLD TUMBLED ALMOST 15 AN OUNCE TO 35250 AND OCTOBER OIL PRICES SLID 66 CENTS A BARREL THE DROP HELPED PUSH THE COMMODITY RESEARCH BUREAU'S WIDELY WATCHED INDEX OF 21 FUTURES CONTRACTS TO 21327 DOWN 279 POINTS RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH SAID THE FALLING COMMODITY PRICES COUPLED WITH THE RECENT SET OF WEAK ECONOMIC DATA ARE HELPING TO BRING ABOUT A SHIFT IN SENTIMENT AMONG BOND INVESTORS PEOPLE ARE CONVINCED THAT WE ARE LOCKED IN A SLOW GROWTH LOW INFLATION ENVIRONMENT SAID MR BERNER HE SAYS LONGTERM INTEREST RATES COULD FALL SLIGHTLY LOWER BUT BELIEVES A PULLBACK DURING THE NEXT FEW WEEKS WOULD BE HEALTHY THOUGH SOME STOCK STRATEGISTS QUICKLY INTERPRETED YESTERDAY'S DECLINE IN STOCK PRICES AS A SIGN THAT INVESTORS ARE GETTING EDGY ABOUT THE ECONOMY OTHERS DISMISSED THAT EXPLANATION SUGGESTING INSTEAD THAT STOCKS FELL FOR TECHNICAL REASONS DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY SAID THAT STOCKS HAVE ENJOYED A SPECTACULAR RUN THROUGH MOST OF AUGUST AND WERE RIPE FOR PROFITTAKING WHAT'S MORE HE NOTED THAT FOR THE PAST 21 YEARS STOCKS HAVE DECLINED 67 OF THE TIME ON THE DAY AFTER LABOR DAY WORLDWIDE STOCK PRICES DECLINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 051 TO CLOSE AT 11347 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2293 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1239 ISSUES DECLINED AND 763 ADVANCED BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY THREEQUARTERS OF A POINT OR ALMOST 750 FOR EACH 1000 FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16130 MARKS AND 10420 YEN COMPARED WITH 16170 MARKS AND 10450 YEN FRIDAY 9309080055 930908 CREDIT MARKETS BOND PRICES ADVANCE FOR SIXTH STRAIGHT SESSION AS GOLD OIL AND OTHER COMMODITY PRICES SKID BY CONSTANCE MITCHELL AND JOHN HUGHES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A SHARP DROP IN THE PRICE OF GOLD OIL AND OTHER COMMODITIES KEPT THE BOND MARKET RALLY ALIVE AND ALLOWED BOND INVESTORS TO POST PROFITS FOR THE SIXTH CONSECUTIVE TRADING DAY THE BOND MARKET OPENED LITTLE CHANGED IN QUIET POSTLABOR DAY TRADING BUT AS SOON AS PRICES OF GOLD AND OIL BEGAN TO SLIDE BOND PRICES JUMPED ON THE NEW YORK COMMODITY EXCHANGE THE GOLD FUTURES CONTRACT FOR OCTOBER DELIVERY FELL 1450 TO 35080 AN OUNCE MEANWHILE ON THE NEW YORK MERCANTILE EXCHANGE PETROLEUM FUTURES CONTRACTS TUMBLED TO THREEYEAR LOWS IN HEAVY TRADING WITH OCTOBER CRUDE OIL SETTLING AT 1707 A BARREL DOWN 66 CENTS FROM FRIDAY THE PREVIOUS RECORD LOW FOR A NEAR CONTRACT WAS 1694 ON JULY 10 1990 BEFORE IRAQ'S INVASION OF KUWAIT WHEN YOU GET A DROPOFF IN OIL AND GOLD PRICES THAT REALLY UNDERSCORES THE POINT THAT INFLATIONARY PRESSURES WILL NOT PRESENT A PROBLEM FOR THE ECONOMY SAID KEVIN FLANAGAN ECONOMIST AT DEAN WITTER REYNOLDS INC FEW ECONOMIC INDICATORS CHEER BOND INVESTORS LIKE THOSE WHICH POINT TO LOW INFLATION IN TRADING THE BELLWETHER 30YEAR TREASURY BOND ROSE ABOUT 3/4 POINT A GAIN OF 750 FOR A BOND WITH A 1000 FACE AMOUNT TO A PRICE OF 104 31/32 THE ISSUE'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE EASED TO 589 FROM 594 ON FRIDAY THAT WAS THE LOWEST YIELD FOR ANY US TREASURY BOND SINCE THE FALL OF 1972 THE BOND MARKET'S OTHER BENCHMARK SECURITY THE LATEST 10YEAR TREASURY NOTE ENDED YESTERDAY AT A YIELD OF 524 A LOW UNSEEN SINCE THE SUMMER OF 1967 ALTHOUGH MANY TRADERS BELIEVE THE POWERFUL BOND MARKET RALLY IS DUE FOR A REVERSAL A FEW ECONOMISTS SEE REASONS WHY THE RALLY COULD CONTINUE WE HAVE NONCYCLICAL DEVELOPMENTS STRUCTURAL CHANGES UNDER WAY INCLUDING THE RESTRUCTURING OF CORPORATIONS AND DOWNSIZING OF THE DEFENSE INDUSTRY AFFECTING THE BOND MARKET SAID HENRY KAUFMAN PRESIDENT OF KAUFMAN & CO THE MARKET CURRENTLY IS IN A PERIOD OF SECULAR INTEREST RATE DECLINE SAID MR KAUFMAN WHICH BEGAN IN OCTOBER 1981 AND COULD CONTINUE UNTIL THE YIELD ON LONGTERM TREASURY BONDS REACHES 55 AMONG OTHER REASONS TO BE OPTIMISTIC ABOUT THE COURSE OF INFLATION AND INTEREST RATES MR KAUFMAN NOTES THAT UNDERLYING CREDIT DEMAND FROM THE PRIVATE SECTOR IS FAR BELOW CYCLICAL PROPORTIONS BOTH FOR BUSINESSES AND HOUSEHOLDS MOST OF THE INDUSTRIALIZED WORLD IS IN RECESSION OR FIGHTING TO AVOID ONE THE SUPPLY OF LONGTERM FIXEDINCOME SECURITIES IS DECLINING AND ORGANIZED LABOR IS UNDER PRESSURE TO KEEP WAGES FROM RISING SEPARATELY THE TREASURY ANNOUNCED YESTERDAY THAT 721 BILLION OF TREASURY SECURITIES WERE STRIPPED IN AUGUST THAT WAS BELOW THE 794 BILLION STRIPPED IN JULY BUT WAS MUCH HIGHER THAN THE AVERAGE MONTHLY NET STRIPPING OF 25 BILLION IN 1992 A BOND IS STRIPPED WHEN ITS INTEREST PAYING COUPON IS SEPARATED FROM ITS PRINCIPAL PAYING CORPUS AND THE TWO PIECES ARE SOLD SEPARATELY STRIPS ARE ALSO CALLED ZEROCOUPON BONDS RAY STONE PARTNER WITH STONE & MCCARTHY PRINCETON NJ CITED STRONG RETAIL DEMAND FOR THE STRIPPED SECURITIES AS WELL AS STRONG DEMAND FROM MUNICIPALITIES AND THIRD WORLD COUNTRIES WHICH USE THE INSTRUMENTS FOR DEFEASEMENT PURPOSES IN CONNECTION WITH THEIR OUTSTANDING DEBT MEANWHILE THE TREASURY SOLD 2267 BILLION OF SHORTTERM BILLS YESTERDAY AT ITS REGULAR WEEKLY AUCTION HERE ARE THE RESULTS HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED SEPT 9 THE 13WEEK BILLS MATURE DEC 9 1993 AND THE 26WEEK BILLS MATURE MARCH 10 1993 DESPITE YESTERDAY'S STRONG RALLY ONLY 400 MILLION OF CORPORATE DEBT WAS PRICED DURING THE SESSION HOWEVER SYNDICATE OFFICIALS SAID ISSUANCE WILL HEAT UP DURING THE REMAINDER OF THE WEEK THE SHADOW CALENDAR OR LIST OF COMPANIES SERIOUSLY CONSIDERING ISSUING DEBT IN THE NEXT FEW DAYS IS GROWING RAPIDLY AS OF YESTERDAY AFTERNOON THE ONLY FIRM DEAL SET FOR TODAY IS A 125 BILLION OFFERING FROM WORLD BANK RUMORED TO BE WAITING ON THE SIDELINES HOWEVER ARE THREE CANADIAN PROVINCES FOUR UTILITIES THREE TELEPHONE COMPANIES AND ONE FINANCE COMPANY SYNDICATE OFFICIALS SAID AMONG YESTERDAY'S ISSUERS SEAGRAM CO JUMPED INTO THE MARKET EARLY WITH 200 MILLION OF 30YEAR DEBENTURES PRICED AT PAR TO YIELD 6875 THE NONCALLABLE DEBENTURES WERE PRICED 078 PERCENTAGE POINT ABOVE TREASURYS LATER IN THE DAY AETNA LIFE & CASUALTY CO SOLD 200 MILLION OF 20YEAR DEBENTURES THAT WERE PRICED AT 99901 TO YIELD 6759 THE NONCALLABLE DEBENTURES WERE PRICED 075 PERCENTAGE POINT ABOVE TREASURYS TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT AS THE FOCUS WAS ON THE TREASURY MARKET CORPORATE BOND PRICES ROSE MODESTLY BUT LAGGED INCREASES IN THE TREASURY MARKET IN THE JUNKBOND MARKET TRADING WAS QUIET BUT PRICES WERE MUCH FIRMER THAN LAST WEEK PRICES WERE FLAT TO UP AS MUCH AS A QUARTER POINT TRADERS SAID THE JUNK BONDS OF WEIRTON STEEL CORP IMPROVED ON NEWS THAT THE COMPANY WAS AUTHORIZED TO ISSUE ADDITIONAL STOCK THE COMPANY'S 11 1/2 BONDS DUE IN 1998 TRADED UP BECAUSE ITS INDENTURE ALLOWS THE COMPANY TO PAY DOWN PART OF THE DEBT WITH THE PROCEEDS OF A COMMON STOCK OFFERING ONE TRADER SAID THE BONDS TRADED UP FROM 1015 TO 103 TO YIELD 10634 THE BLAZE OF BUYING IN THE TREASURY BOND MARKET SPREAD TO MUNICIPAL SECURITIES WHERE PRICES WERE ANYWHERE FROM 1/8 TO 3/4 POINT HIGHER AT THE CLOSE THERE WAS LITTLE NEW ISSUANCE IN THE MUNICIPAL ARENA BUT MORE THAN 1 BILLION OF BONDS ARE EXPECTED TO BE SOLD TODAY BY ISSUERS ANXIOUS TO TAKE ADVANTAGE OF TUMBLING INTEREST RATES WITH YIELDS PLUNGING A NUMBER OF ISSUERS WILL PROBABLY DUST OFF SOME OLD SCENARIOS FOR ANY POSTPONED OFFERINGS AND GET SET TO BRING THE BONDS TO THE MARKET WITHIN THE NEXT FEW WEEKS ACCORDING TO A NEW YORK UNDERWRITING SPECIALIST CURRENTCOUPON MORTGAGE SECURITIES MOVED HIGHER BUT THE WOES OF HIGHERCOUPON ISSUES CONTINUED AMONG CURRENT COUPONS OR THOSE SECURITIES CURRENTLY PRODUCED BY MORTGAGE BANKERS FOR SEPTEMBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ISSUE ROSE 10/32 AT 100 10/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 ISSUE WAS UP 7/32 AT 99 17/32 AND FEDERAL NATIONAL MORTAGAGE ASSOCIATION 6 SECURITIES POSTED A GAIN OF 1/4 POINT AT 99 14/32 BUT 7 1/2 ISSUES FROM ALL THREE AGENCIES WERE DOWN 2/32 TO 5/32 THOSE COUPONS ARE CALLED CUSP SECURITIES BY TRADERS REFERRING TO THEIR STATUS AS ISSUES ON THE VERGE OF BEING CALLED EARLY DUE TO PREPAYMENT OF THE UNDERLYING MORTGAGE LOANS INSTITUTIONAL INVESTORS AND DEALERS HAVE BOTH BEEN TRYING TO UNLOAD 7 1/2 ISSUES MEANWHILE HOPES FOR A PAUSE IN THE TREASURY MARKET RALLY NEVER MATERIALIZED ANOTHER FACTOR THAT WOULD TEND TO KEEP PRICE ACTION IN MORTGAGES MIXED AT BEST GENERALLY MORTGAGES UNDERPERFORM IN RELATION TO TREASURYS AS RATES RISE 9309080054 930902 BUSINESS BRIEF IOWAILLINOIS GAS & ELECTRIC CO UNIT BUYS DKM RESOURCES FROM DYSONKISSNERMORAN IOWAILLINOIS GAS & ELECTRIC CO SAID ITS MEDALLION PRODUCTION CO UNIT ACQUIRED CLOSELY HELD DKM RESOURCES FROM DYSONKISSNERMORAN CORP OF NEW YORK THE DAVENPORT IOWA UTILITY DIDN'T DISCLOSE TERMS OF THE PURCHASE BEYOND NOTING THAT IT PAID IN EXCESS OF 50 MILLION THE PURCHASE MORE THAN DOUBLES MEDALLION'S OIL AND GAS RESERVE BASE IOWAILLINOIS SAID DKM RESOURCES HAS PROVEN OIL AND GAS ASSETS ESTIMATED AT 148 MILLION BARRELS OF OIL EQUIVALENT INCLUDING 55 BILLION CUBIC FEET OF NATURAL GAS MEDALLION'S CURRENT NET PRODUCTION IS 7200 BARRELS OF OIL EQUIVALENT DAILY FOLLOWING THE ACQUISITION THE UNIT'S PRODUCTION WILL INCREASE TO 11000 BARRELS A DAY IOWAILLINOIS SAID 9309080053 930908 SEC IS SET TO PUSH FOR MORE MUNI DISCLOSURE BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS PREPARED TO STRONGARM ISSUERS OF MUNICIPAL SECURITIES INTO DISCLOSING VOLUMES MORE ABOUT THEIR FINANCIAL HEALTH IN A FARREACHING REPORT TO THE HOUSE ENERGY AND COMMERCE COMMITTEE AND ITS SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE THE AGENCY URGED CONGRESS TO REQUIRE DISCLOSURES BY CITIES AND GOVERNMENT AUTHORITIES THAT TAP THE GROWING MUNIBOND MARKET BUT IF CONGRESS DOESN'T LEGISLATE NEW DISCLOSURE STANDARDS THE WATCHDOG AGENCY SAID IT WILL DRAFT A RULE PROHIBITING DEALERS FROM RECOMMENDING MUNICIPAL SECURITIES FROM ISSUERS THAT HAVEN'T MADE REGULAR FINANCIAL REPORTS VOLUNTARILY NEW DISCLOSURE RULES FOR ISSUERS OF MUNICIPAL SECURITIES WOULD BE A MAJOR CHANGE IN A MARKET THAT HAS SWELLED TO 12 TRILLION OF CURRENT ISSUANCE BUT WITH VIRTUALLY NO FEDERAL DISCLOSURE RULES FOR ISSUERS OF THE SECURITIES THE HOUSE COMMITTEE CHAIRED BY REP JOHN DINGELL D MICH ASKED THE SEC AND OTHER MARKET REGULATORS TO STUDY THE MUNICIPAL MARKET AND RECOMMEND ANY CHANGES AMONG OTHER THINGS THE HOUSE PANEL WAS DISTURBED BY REPORTS OF MUNIBOND UNDERWRITING JOBS BEING ALLOCATED ON THE BASIS OF POLITICAL CONTRIBUTIONS THE SEC REPORT EXCORIATED THE LACK OF INFORMATION AVAILABLE TO INVESTORS ON BOND PRICES AND THE CONTINUING HEALTH OF THE BOND ISSUERS THE AGENCY RECOMMENDED LEGISLATION TO LIGHTEN IF NOT REMOVE THE EXISTING LAW THAT EXCUSES BOND ISSUERS FROM FILING PREOFFERING STATEMENTS ABOUT THEIR SECURITIES AS WELL AS PERIODIC FINANCIAL REPORTS IF CONGRESS CHOOSES NOT TO PROVIDE THE COMMISSION WITH FULL AUTHORITY TO ADDRESS THE ADEQUACY AND CONSISTENCY OF DISCLOSURE IN THIS MARKET THE SEC STAFF BELIEVES THAT THE COMMISSION COULD EXPLORE WAYS TO IMPROVE INITIAL AND SECONDARY MARKET DISCLOSURE UNDER ITS EXISTING AUTHORITY THE REPORT SAID THE REPORT CALLS FOR AN INITIAL SCARE TACTIC BY THE SEC SAYING THAT THE AGENCY STAFF WILL FIRST RECOMMEND THAT BOND ISSUERS BE INFORMED OF THE DISCLOSURES REQUIRED BY THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS THEN THE REPORT SAID THE STAFF WILL PROPOSE A RULE PROHIBITING MUNICIPALSECURITIES DEALERS FROM RECOMMENDING INVESTMENT IN ANY BONDS FROM ISSUERS THAT DON'T REGULARLY UPDATE FINANCIAL DATA FOR INVESTORS THE SEC STAFF'S STRONG STANCE CAUGHT SOME MUNIMARKET PARTICIPANTS BY SURPRISE THE PROPOSED BAN ON CERTAIN BONDS WOULD HURT THIS MARKET TERRIBLY IF IT GOT TO THAT POINT SAID MICAH GREEN EXECUTIVE VICE PRESIDENT OF THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP FOR MUNIBOND DEALERS AND UNDERWRITERS WHILE MR GREEN SAID THE PSA AGREES WITH THE SEC THAT VOLUNTARY EFFORTS TO PROVIDE THIS INFORMATION AREN'T WORKING HE SAID THE TRADE GROUP WOULD PREFER MORE MEASURED AND THOUGHTFUL CHANGES IN THE DISCLOSURE RULES FOR ISSUERS EVEN THE SEC CONCEDES IN ITS REPORT THAT KNOWN ABUSES OF INVESTORS IN MUNI BONDS HAVE BEEN RELATIVELY INFREQUENT GIVEN THE BURGEONING SIZE OF THE MARKET THE AGENCY'S DETERMINATION TO BRING ABOUT MORE DISCLOSURE ALONG WITH ITS CALL FOR REALTIME QUOTATION OF MUNICIPALBOND PRICES IS MORE A REFLECTION OF ITS NEW CHAIRMAN ARTHUR LEVITT THAN OF TROUBLES IN THE MARKET IN FACT THE SEC STAFF'S REPORT ALREADY UNDER WAY WHEN MR LEVITT TOOK THE AGENCY'S HELM IN JULY WAS BEEFED UP AT HIS BEHEST I AM OBSESSED WITH THE NEED FOR PROTECTION OF THE RETAIL INVESTOR MR LEVITT SAID IN AN INTERVIEW THE SEC REPORT NOTED THAT HOUSEHOLDS ARE THE LARGEST HOLDERS OF MUNICIPAL DEBT EVEN BEFORE FIGURING IN THE MUTUAL FUNDS THAT HOLD MUNICIPAL BONDS THE REPORT QUOTED THE BOND BUYER 1993 YEARBOOK WHICH SAID HOUSEHOLDS OWN 5984 BILLION OR 52 OF THE TOTAL MUNICIPAL DEBT OUTSTANDING MUCH OF THAT INVESTMENT THE SEC REPORT NOTED IS BASED ON LITTLE INFORMATION ABOUT THE QUALITY OF THE BONDS OR THE ISSUERS OR EVEN THE MARKET PRICE THE SEC REPORT SAID THE AGENCY WILL PUSH THE MUNICIPAL SECURITIES RULEMAKING BOARD TO USE EXISTING POWERS TO REQUIRE PUBLIC DISSEMINATION OF PRICE QUOTES FOR BONDS AS WELL AS LASTSALE INFORMATION THE MSRB REGULATES DEALERS AND UNDERWRITERS MR LEVITT WILL HAVE A CHANCE TO DEFEND THE SEC'S RECOMMENDATIONS AT A HEARING SCHEDULED FOR TOMORROW BY THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE HE WILL BE JOINED AT THE WITNESS TABLE BY JOHN E PINTO THE TOP COP FROM THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH ALSO OVERSEES BROKERDEALERS AND CHARLES W FISH CHAIRMAN OF THE MSRB SUBCOMMITTEE CHAIRMAN EDWARD J MARKEY D MASS WHO IS LEADING THE CONGRESSIONAL EFFORT TO SHED LIGHT ON THE BOND MARKET WAS CIRCUMSPECT ABOUT HIS REACTION TO THE RECOMMENDATIONS EXCEPT TO NOTE THAT HE WANTS TO ASSURE THAT THIS MARKET CONTINUES TO SERVE EFFICIENTLY THE FINANCING NEEDS OF THOUSANDS OF LOCAL AND STATE GOVERNMENTS REP MARKEY PLANS TO SCHEDULE AT LEAST ONE MORE HEARING AT WHICH INVESTORS IN MUNICIPAL BONDS ARE EXPECTED TO TESTIFY BUT IT MAY BE HARD TO FIND MANY AGGRIEVED INVESTORS IN MUNI BONDS THE BIGGEST DEFAULT IN THE MARKET THAT OF THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM OCCURRED 10 YEARS AGO THE SEC CALLED FOR MUNIBOND REFORMS IN THE WAKE OF THE DEFAULT BUT THE REPORT SAID MOST OF THE RECOMMENDATIONS WERE IGNORED 9309080052 930908 TECHNOLOGY BRIEF CHIRON CORP PACT REACHED WITH SYNTEX FOR DEVELOPMENT OF DRUGS CHIRON CORP AND SYNTEX CORP ANNOUNCED AN AGREEMENT TO DEVELOP DRUGS FOR THE TREATMENT OF ARTHRITIC DISEASES TUMORS AND OTHER DISEASES UNDER 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 THE GOAL WILL BE THE DISCOVERY AND DESIGN OF SYNTHETIC DRUGS TO BLOCK MOLECULES INVOLVED IN INFLAMMATION AND OTHER BODILY PROCESSES THESE MOLECULES ARE KNOWN AS CELLULAR ADHESION MOLECULES FINANCIAL TERMS WEREN'T DISCLOSED 9309080051 930908 PEPPERAND SALT TO EASE ONE OF OUR CARES TO LIQUIDATE OUR DEBT 9309080050 930908 DON'T REINVENT GOVERNMENT GET RID OF SOME OF IT BY DANIEL CASSE WITH THE RELEASE OF HIS NATIONAL PERFORMANCE REVIEW REPORT VICE PRESIDENT AL GORE HAS FOUND COMMON GROUND WITH ROSS PEROT CIVILSERVICE TECHNOCRATS AND COUNTRYCLUB REPUBLICANS ALL OF THEM SHARE THE BELIEF THAT THE CHIEF PROBLEM FACING THE FEDERAL GOVERNMENT IS A LACK OF EFFICIENCY THEIR EVIDENCE IS DOZENS OF HORROR STORIES ABOUT BYZANTINE REGULATIONS AND ELABORATE PURCHASE REQUIREMENTS FOR GOVERNMENT ASHTRAYS AND THE LIKE IS THE GOVERNMENT FILLED WITH WASTEFUL IDIOTIC MANAGEMENT PROCEDURES OF COURSE IT IS BUT THE ASSUMPTION IMPLICIT IN MR GORE'S CRUSADE GOVERNMENT SHOULD BE MORE LIKE BUSINESS BETRAYS A MISUNDERSTANDING OF THE CONSTITUTIONAL AND POLITICAL CONSTRAINTS THAT ARE PART OF THE AMERICAN SYSTEM THE FEDERAL BUREAUCRACY IS INEFFICIENT BECAUSE IT WAS DESIGNED THAT WAY WHILE PRIVATE SECTOR FIRMS NEED TO FOCUS ON THE BOTTOM LINE A FEDERAL AGENCY HAS TO BE CONCERNED WITH FAIRNESS WITH AVOIDING FAVORITISM IN AWARDING CONTRACTS WITH REDUCING THE ARBITRARINESS AND PREJUDICES OF GOVERNMENT MANAGERS AND WITH RESPONDING TO THE DEMANDS OF ELECTED REPRESENTATIVES ONE NEED ONLY READ THE STATUTORY LANGUAGE THAT CREATES A GOVERNMENT PROGRAM TO REALIZE THAT AMERICAN GOVERNMENT IS NOT ABOUT STREAMLINING BUT ABOUT PERMITTING EVERYBODY TO PUT IN HIS TWO CENTS IT'S NO SURPRISE THAT THE PRIVATE SECTOR CAN MANAGE MANY OF THE SAME ACTIVITIES FOR LESS MONEY THE REAL QUESTION NEVER ASKED BY THE NATIONAL PERFORMANCE REVIEW IS WHETHER CERTAIN ACTIVITIES ARE BEST LEFT IN THE HANDS OF GOVERNMENT ALTOGETHER MR GORE'S TASK FORCE SEEMS TO HAVE NO APPRECIATION FOR THIS FUNDAMENTALLY POLITICAL QUESTION ABOUT THE FEDERAL GOVERNMENT INSTEAD THE NATIONAL PERFORMANCE REVIEW BASES ITS BOLD CLAIMS ABOUT REENGINEERING GOVERNMENT ON VOGUE MANAGEMENT TECHNIQUES THAT WOULD REPLACE CLUMSY AND OUTDATED ADMINISTRATIVE PRACTICES BUT EVEN HERE THE REPORT OFFERS THE KIND OF SHELL GAME THAT IS A RECURRING PART OF WASHINGTON LIFE ONE PROPOSAL WOULD RESTRUCTURE THE FEDERAL AVIATION ADMINISTRATION TO PERMIT AIR TRAFFIC CONTROLLERS TO BECOME PART OF A GOVERNMENT CORPORATION SINCE ITS CREATION IN 1940 THE FAA HAS BEEN A BUREAU WITHIN THE COMMERCE DEPARTMENT AN INDEPENDENT AGENCY AND THEN A PART OF THE DEPARTMENT OF TRANSPORTATION DOES ANYONE BELIEVE THAT ONE MORE INCARNATION WOULD REALLY ALTER THE WAY THE AGENCY DOES BUSINESS THE VICE PRESIDENT IS ALSO MAKING HAY OUT OF HIS PROPOSAL TO SAVE A REPORTED 16 BILLION BY CLOSING OR CONSOLIDATING 1200 AGRICULTURE DEPARTMENT FIELD OFFICES ABOUT 10 OF THE TOTAL THIS CERTAINLY SOUNDS LIKE AN UNOBJECTIONABLE IF MODEST STEP BUT EVEN THIS MOVE BEGS AN ESSENTIAL QUESTION WHAT CRITICAL PROGRAMS ARE BEING CARRIED OUT BY THE AGRICULTURE DEPARTMENT THAT REQUIRE REGIONAL OFFICES IN EVERY COUNTY IN THE US IF 10 CAN BE CUT WHY NOT 100 THE VICE PRESIDENT'S REPORT MAKES NO SERIOUS ATTEMPT TO QUESTION THE PURPOSES AND PROGRAMS OF THIS BEHEMOTH FEDERAL AGENCY INSTEAD IN A FALSE GESTURE OF BELTTIGHTENING HIS REPORT CALLS FOR THE ELIMINATION OF FEDERAL SUBSIDIES FOR MOHAIR AND HONEY TWO WELLKNOWN AND RELATIVELY MINOR PIECES OF CONGRESSIONAL PORK THAT HAVE LONG BEEN THE PET VILLAINS OF GOVERNMENT OFFICIALS WHO TALK TOUGH BUT SPEND BIG EVEN THE MUCH VAUNTED PROPOSAL TO ELIMINATE 252000 GOVERNMENT JOBS IS LITTLE MORE THAN A BUREAUCRATIC CHIMERA NO JOBS WILL ACTUALLY BE CUT NO ONE WILL BE LAID OFF NO ONE WILL BE FIRED INSTEAD THE MAGIC NUMBER WILL BE REACHED THROUGH A PAINLESS SYSTEM OF EARLY RETIREMENTS ATTRITION AND RETRAINING FINALLY THE REPORT SUGGESTS THE CREATION OF A PRESIDENTIAL MANAGEMENT COUNCIL A NEEDLESS COMMISSION THAT WOULD SUPPOSEDLY IMPLEMENT THE NEW RECOMMENDATIONS AND IN A SOP TO UNIONS A NATIONAL PARTNERSHIP COUNCIL IS CALLED FOR TO WORK WITH ORGANIZED LABOR IN REVIEWING PROPOSED CHANGES IN THE CIVIL SERVICE BOTH THESE ENTITIES WOULD ADD YET MORE LAYERS OF OVERSIGHT TO THE FEDERAL BUREAUCRACY THIS FROM A REPORT THAT CLAIMS TO DECRY THE PROLIFERATION OF FEDERAL MANAGERS WHO SUPPOSEDLY DON'T HAVE ENOUGH FREEDOM TO DO THEIR JOBS AS THEY SEE FIT IN ADDITION THE REPORT IS FILLED WITH REFERENCES TO ETHEREAL CONCEPTS LIKE HUMANIZING THE WORKPLACE ESTABLISHING ECOSYSTEM MANAGEMENT POLICIES AND UPGRADING INFORMATION TECHNOLOGY NEARLY ALL THESE PROPOSALS ASSUME THAT THE FEDERAL GOVERNMENT WOULD IMPROVE IF IT WERE JUST BETTER ORGANIZED AND MORE SENSIBLY MANAGED THE FACT IS THAT THE PECULIAR ORGANIZATION OF THE FEDERAL BUREAUCRACY ITS OVERABUNDANCE OF EMPLOYEES AND THE LABYRINTHINE PROCEDURES REQUIRED TO FIRE ANY ONE OF THEM ARE THE OFTEN COSTLY IRKSOME AND YET UNAVOIDABLE FEATURES OF A LARGE CENTRAL GOVERNMENT THAT IS WHY IMPROVING THE PERFORMANCE OF GOVERNMENT IS BY ITS VERY NATURE AN EXERCISE IN SUPERFICIAL TINKERING THE MORE INTERESTING AND CHALLENGING PROBLEMS ONES THAT MR GORE'S TEAM SHIES AWAY FROM ALTOGETHER CONCERN WHETHER THE SCOPE AND FUNCTIONS OF GOVERNMENT SHOULD CHANGE TODAY THERE ARE A WHOLE HOST OF FEDERAL SUBSIDIES LOAN PROGRAMS DEMONSTRATION PROJECTS TRANSFER PAYMENTS AND EVEN ENTIRE AGENCIES WHOSE CONTINUED USEFULNESS DESERVES TO BE CALLED INTO QUESTION IF AMERICAN GOVERNMENT IS TRULY TO BE REINVENTED IT WILL REQUIRE A FAR LESS TIMID INVESTIGATION THAN MR GORE'S SUCH AN INQUIRY WOULD BEGIN BY LOOKING AT SOME GOVERNMENT ACTIVITIES AND ASKING NOT HOW CAN IT WORK BETTER BUT RATHER SHOULD GOVERNMENT BE DOING THIS AT ALL MR CASSE SERVED AS SPECIAL ASSISTANT TO PRESIDENT BUSH IN THE WHITE HOUSE OFFICE OF CABINET AFFAIRS 9309080049 930903 BUSINESS BRIEF HCAHOSPITAL CORP OF AMERICA THIRDPERIOD CHARGE SLATED NEW CREDIT ACCORD REACHED HCAHOSPITAL CORP OF AMERICA SAID IT WOULD TAKE A 14 MILLION AFTERTAX CHARGE IN THE THIRD QUARTER THE NASHVILLE TENN COMPANY IS TAKING THE CHARGE EQUAL TO EIGHT CENTS A SHARE IN PART TO REDUCE ITS DEBT FROM EARLIER CREDIT FACILITIES IN THE YEAREARLIER PERIOD HCA POSTED A LOSS OF 268 MILLION OR 172 A SHARE ON A CHARGE OF 333 MILLION OR 213 A SHARE PROFIT WITHOUT THE CHARGE WOULD HAVE BEEN 646 MILLION OR 36 CENTS A SHARE HCA ALSO ANNOUNCED THAT IT HAS A NEW 164 BILLION CREDIT AGREEMENT THAT REPLACES THE COMPANY'S PREVIOUS CREDIT FACILITIES THE BENEFITS OF THIS NEW AGREEMENT WILL OFFSET THE THIRDQUARTER CHARGE THE COMPANY SAID PART OF THE PROCEEDS WILL GO TO PAY OFF 952 MILLION IN LOANS MORGAN GUARANTY TRUST CO WILL CONTINUE AS AGENT FOR THE NEW CREDIT AGREEMENT THAT HCA SAID WILL PROVIDE LOWER INTEREST RATES 9309080048 930908 WHAT'S NEWS WORLDWIDE CLINTON EMBARKED ON AN AMBITIOUS EFFORT TO STREAMLINE THE US GOVERNMENT THE PRESIDENT CHARACTERIZING THE GOVERNMENT AS OUTDATED OFFERED A PLAN TO SAVE AN ESTIMATED 108 BILLION OVER FIVE YEARS AND SLASH THE CIVILIAN FEDERAL WORK FORCE CLINTON WILL BE ABLE TO SIGN EXECUTIVE ORDERS TO PUT AS MUCH AS 45 OF THE PLAN'S RECOMMENDATIONS INTO EFFECT AND THE WHITE HOUSE WILL PUSH AT LEAST THREE PIECES OF LEGISLATION TO ENACT OTHER PROVISIONS MEMBERS OF CONGRESS EAGER TO BOLSTER THEIR SAGGING PUBLIC IMAGES WELCOMED THE ADMINISTRATION'S PROPOSALS ALTHOUGH THE PLAN HAS A WIDE SWEEP A LOT OF ITS RECOMMENDATIONS ARE VAGUE AND MANY OF THE SUGGESTIONS REPRESENT NEW PACKAGING RATHER THAN NEW IDEAS THE US VOICED HOPE THAT AN ISRAELIPLO ACCORD COULD BE SIGNED MONDAY CLINTON OFFERED TO HOST A SIGNING CEREMONY AT THE WHITE HOUSE IF BOTH SIDES ARE ABLE TO WORK OUT DETAILS OF THE PALESTINIAN SELFRULE AGREEMENT AND A FORMULA FOR MUTUAL RECOGNITION IN JERUSALEM TENS OF THOUSANDS OF ISRAELIS GATHERED OUTSIDE THE PRIME MINISTER'S OFFICE TO PROTEST THE PEACE PLAN THE RALLY WAS THE FIRST OF A SERIES SPEARHEADED BY THE OPPOSITION LIKUD BLOC WHICH WANTS TO FORCE THE GOVERNMENT TO CALL NEW ELECTIONS OR AT LEAST A REFERENDUM OVER THE PLAN ISRAEL AND SYRIA SAID THEY MADE NO PROGRESS AT MIDEAST TALKS CONCERNING THE PRINCIPLE OF AN ISRAELI WITHDRAWAL FROM THE GOLAN HEIGHTS IN RETURN FOR PEACE CLINTON INTENDS TO PROPOSE MEDICARE AND MEDICAID SPENDING CAPS THAT WOULD WRING 238 BILLION FROM THE TWO PROGRAMS IN THE FIRST FIVE YEARS OF HIS HEALTHCARE PLAN ADMINISTRATION OFFICIALS SAID THE PROPOSED CAPS ARE AROUSING SKEPTICISM AND RESISTANCE AMONG DEMOCRATS SOUTH AFRICAN NEGOTIATORS AGREED ON A DRAFT LAW THAT WOULD GIVE BLACKS AN INTERIM ROLE IN RUNNING THE COUNTRY FOR THE FIRST TIME IN SOUTH AFRICA'S HISTORY A TOP AFRICAN NATIONAL CONGRESS OFFICIAL SAID THAT APPROVAL OF THE LEGISLATION BY PARLIAMENT WOULD ALLOW THE ANC TO CALL FOR ALL REMAINING INTERNATIONAL ECONOMIC SANCTIONS TO BE LIFTED JOYCELYN ELDERS WAS CONFIRMED BY THE SENATE TO BE THE US SURGEON GENERAL SURMOUNTING OPPOSITION FROM CONSERVATIVES WHO OBJECTED TO HER ADVOCACY OF CONDOMS FOR YOUNG PEOPLE AND HER STATEMENTS ON ABORTION AND SEX THE VOTE WAS 65 TO 34 IN FAVOR OF THE FORMER ARKANSAS HEALTH CHIEF TWO WHITE MEN WERE CONVICTED OF ATTEMPTED MURDER KIDNAPPING AND ROBBERY IN THE BURNING OF A BLACK TOURIST IN FLORIDA THE VICTIM HAD IDENTIFIED THE DUO AS THE ATTACKERS WHO USED RACIAL SLURS DOUSED HIM WITH GASOLINE AND SET HIM AFIRE FIVE EXSOVIET 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 THOUSANDS OF MUSLIMS HAVE BEEN SEIZED BY CROATS IN THE MOSTAR REGION OF SOUTHWESTERN BOSNIA AND PLACED IN DETENTION CAMPS SINCE JUNE ACCORDING TO A UN REPORT WHICH CITED BRUTAL AND DEGRADING CONDITIONS IN THE CAMPS A VIRGINIA JUDGE GAVE CUSTODY OF A LESBIAN WOMAN'S TWOYEAROLD SON TO THE BOY'S MATERNAL GRANDMOTHER SAYING THE MOTHER'S RELATIONSHIP WITH HER LIVEIN PARTNER RENDERS HER AN UNFIT PARENT GAYRIGHTS ACTIVISTS WATCHED THE CASE BECAUSE IT PITTED A NONPARENT AGAINST A MOTHER WHOSE ALLEGED FAULT WAS HER HOMOSEXUALITY FERDINAND MARCOS'S BODY WAS FLOWN TO LAOAG IN THE NORTHERN PHILIPPINES FOR BURIAL THE WIDOW OF THE DISGRACED FORMER PRESIDENT WAS AT THE AIRPORT TO GREET THE ARRIVAL OF THE COFFIN FROM HAWAII WHERE MARCOS DIED IN EXILE IN 1989 ANALYSTS SAY IMELDA MARCOS WILL TRY TO USE THE BURIAL RITES TO BOOST HER SON'S POLITICAL FORTUNES US ARMY RANGERS CAPTURED 17 SUSPECTED MILITIAMEN IN SOUTH MOGADISHU IN THE LATEST UNLED ACTION AIMED AT FINDING FUGITIVE SOMALI CLAN LEADER AIDID ABOUT 50 OF THE US SOLDIERS STORMED A DOZEN BUILDINGS THE US INSISTED THAT A CHINESE VESSEL WAS CARRYING CHEMICAL ARMS MATERIALS TO THE MIDEAST LAST MONTH EVEN THOUGH INSPECTORS IN SAUDI ARABIA EXONERATED CHINA THE STATE DEPARTMENT SAID THE MATERIALS COULD HAVE BEEN DUMPED OR UNLOADED BEFORE THE INSPECTION THE SHIP WAS DETAINED AFTER THE US VOICED CONCERN ABOUT THE CARGO 9309080047 930908 COMMODITIES GOLD FUTURES PRICES FALL SHARPLY ON RUMORS OF SALES BY CENTRAL BANKS OF FRANCE AND BELGIUM BY WALL STREET JOURNAL REPORTERS JEFFREY TAYLOR IN CHICAGO CHARLES FLEMING IN PARIS AND NEIL BEHRMANN IN LONDON GOLD FUTURES PRICES FELL SHARPLY ON HEAVY SELLING BY LARGE INVESTORS AND PERSISTENT RUMORS THAT EUROPEAN CENTRAL BANKS WERE ALSO SELLING THE PRECIOUS METAL AT NEW YORK'S COMMODITY EXCHANGE THE PRICE OF THE ACTIVELY TRADED DECEMBER GOLD FUTURES CONTRACT SLIPPED 1460 TO SETTLE AT 35250 AN OUNCE SPECULATION WAS RAMPANT IN THE MARKET THAT THE CENTRAL BANKS OF FRANCE AND BELGIUM WERE SELLING GOLD ACCORDING TO ONE RUMOR FRANCE'S BANK WAS DOING SO TO RAISE MONEY TO REPAY A LOAN FROM GERMANY ANOTHER RUMOR HAD IT THAT FRANCE AND BELGIUM WERE SEEKING TO PROP UP THEIR CURRENCIES THROUGH GOLD SALES IN PARIS THE BANK OF FRANCE HAD NO COMMENT ON RUMORS OF ITS GOLD SALES BUT GUY BOREL MANAGER OF SOCIETE GENERALE'S GOLD FUNDS SAID THAT ALTHOUGH HE HAS NO PROOF OF IT HE BELIEVES EUROPEAN CENTRAL BANKS HAVNG ALREADY EXHAUSTED THEIR FOREIGN EXCHANGE RESERVES IN THE RUNUP TO LAST MONTH'S EUROPEAN RATE MECHANISM CRISIS HAVE TURNED TO SELLING GOLD RESERVES TO HELP SUSTAIN THEIR CURRENCIES I AM PERSONALLY CONVINCED THAT THE GOLD PRICE HAS BEEN HIT BY SALES FROM CENTRAL BANKS IN DIFFICULTY ESPECIALLY THE BANK OF FRANCE AND PERHAPS THE BANK OF BELGIUM MR BOREL SAID AS EVIDENCE MR BOREL POINTS TO A CORRELATION BETWEEN THE GERMAN MARK'S SHARP RISE AGAINST THE FRANC AND A SUBSEQUENT DROP IN THE PRICE OF GOLD FIRST IN EARLY AUGUST AT THE TIME OF THE ERM CRISIS AND THEN AGAIN LAST WEEK AS TRADING PROGRESSED YESTERDAY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THAT BUY OR SELL FUTURES CONTRACTS WHEN PRICES PASS LEVELS THEY REGARD AS SIGNIFICANT ENTERED THE MARKET AS SELLERS LAST WEEK THE MARKET FAILED IN SEVERAL ATTEMPTS TO TOP 365 AN OUNCE SAID BENJAMIN PUGLIESI EXECUTIVE DIRECTOR AND CHIEF METALS DEALER FOR SWISS BANK CORP WE COULDN'T SUSTAIN THAT LEVEL AND THE FUNDS TRIGGERED SELL PROGRAMS SINCE ITS PEAK OF 410 AN OUNCE AT THE BEGINNING OF AUGUST GOLD HAS FALLEN ABOUT 14 IT HAS RETRACED A LARGE PORTION OF ITS GAINS SINCE ITS LOW POINT OF 327 IN FEBRUARY IT'S BEEN FUND SELLING ALL THE WAY SAID BRIAN NATHAN MANAGING DIRECTOR OF AYRTON METALS IN LONDON THEY DROVE PRECIOUS METALS PRICES UP NOW THEY ARE DRIVING THEM DOWN AUSTRALIAN AND SOUTH AFRICAN PRODUCERS HAVE ALSO BEEN SELLING IN THE PAST FEW WEEKS AS THE PRICE WEAKENED SWISS AND LONDON BULLION DEALERS SAID CHINA'S CENTRAL BANK ALSO SOLD THESE DEALERS SAID LONDON AND ZURICH DEALERS EXPERIENCED STEADY SELLING IN LARGE VOLUMES IN LATE AUGUST AND EARLY SEPTEMBER FROM A SOURCE WHICH THEY BELIEVED TO BE A CENTRAL BANK ILLUSTRATING THE EXTENT OF SPECULATIVE SALES THE OPEN GOLD FUTURES POSITION ON NEW YORK'S COMMODITY EXCHANGE HAS DECLINED TO ABOUT 170000 CONTRACTS FROM ITS PEAK OF 210000 CONTRACTS AT THE BEGINNING OF AUGUST OPEN INTEREST IS STILL TWICE WHAT IT WAS AT THE BEGINNING OF 1993 HOWEVER IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDITSUISSE SAID SUPPLYANDDEMAND FACTORS ARE ALSO EXERTING DOWNWARD PRESSURE ON GOLD PRICES LAST MONTH THE CHINESE ANNOUNCED AN AUSTERITY PROGRAM THAT REDUCED GOLD DEMAND FROM CHINA MR MACDONALD SAID THERE IS ALSO WEAKNESS IN THE ITALIAN JEWELRY INDUSTRY DESPITE THE FACT THAT SEPTEMBER IS A PEAK DEMAND PERIOD ADDING THESE THINGS TOGETHER THEY'VE SPOOKED THE MARKET GOLD DEALERS ARE HOPING FOR AN INCREASE IN BUYING OF GOLD WHEN THE ITALIAN JEWELERY INDUSTRY THE BIGGEST GOLD MANUFACTURER PREPARES FOR CHRISTMAS IN THE MONTHS AHEAD BUT THEY THE INDUSTRY WILL FIRST WAIT FOR THE MARKET TO SETTLE DOWN A LONDON BULLION DEALER SAID MR PUGLIESI SAID HE EXPECTS GOLD TO FIND SUPPORT AT ABOUT THE 344ANOUNCE LEVEL AS ASIAN COUNTRIES AND OTHERS RETURN TO THE MARKET AS BUYERS I HOPE WE DON'T BREAK THROUGH 340 HE SAID THE GLITTER WOULD BE REALLY TARNISHED IF WE GO DOWN THROUGH 340 IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS CORN AND SOYBEAN PRICES SANK AMID HEAVY SELLING BY COMMODITY FUND MANAGERS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR SEPTEMBER DELIVERY FELL 225 CENTS A BUSHEL TO SETTLE AT 63850 A BUSHEL THE SEPTEMBER CORN CONTRACT DROPPED 35 CENTS A BUSHEL TO SETTLE AT 22550 A BUSHEL THE DROP CAME DESPITE GROWING SPECULATION THAT THE AGRICULTURE DEPARTMENT WILL SHAVE ITS FORECASTS OF THE IMPENDING CORN AND SOYBEAN HARVESTS THE DEPARTMENT IS SLATED TO RELEASE ITS MONTHLY CROP PROJECTIONS AFTER THE CLOSE OF TRADING TOMORROW BASED ON AUG 1 CONDITIONS THE DEPARTMENT PROJECTED THAT US CORN FARMERS WILL HARVEST 7423 BILLION BUSHELS AND THAT US SOYBEAN GROWERS WILL HARVEST 1902 BILLION BUSHELS ALLENDALE INC A CRYSTAL LAKE ILL COMMODITY RESEARCH FIRM SAYS THAT ITS SURVEY OF FARMERS SUGGESTS A 7294 BILLION BUSHEL CORN CROP AND A 1848 BILLION BUSHEL SOYBEAN CROP 9309080046 930908 INTERNATIONAL LM ERICSSON UNIT GETS INDIA JOB STOCKHOLM ERICSSON TELECOMMUNICATIONS PRIVATE LTD AN INDIABASED SUBSIDIARY OF SWEDISH TELECOMMUNICATIONS GROUP LM ERICSSON AB SAID IT RECEIVED AN ORDER FOR 100000 LOCAL TELEPHONE LINES OF THE AXE SWITCHING SYSTEM THE ORDER WAS PLACED BY THE DEPARTMENT OF TELECOMMUNICATIONS IN NEW DELHI SAID ERICSSON THE COMPANY DID NOT DISCLOSE THE VALUE OF THE ORDER BUT CALLED IT A MAJOR BREAKTHROUGH BECAUSE IT MARKS ERICSSON'S ENTRY IN THE INDIAN MARKET FOR LOCAL DIGITAL SWITCHING SYSTEMS 9309080045 930908 HEARD ON THE STREET SOME INVESTORS TAKE A SHINE TO MAGMA COPPER ON LOWER COSTS AND HOPE OF DEMAND PICKUP BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ADMITTEDLY MAGMA COPPER ISN'T THE TYPE OF STOCK THAT GETS THE HEART RACING YOU RARELY HEAR BROKERS WHISPER BUY COPPER WITH COPPER PRICES IN THE DOLDRUMS ONLY THREE OF 13 WALL STREET ANALYSTS FOLLOWING MAGMA HAVE A BUY RECOMMENDATION ON IT ACCORDING TO ZACKS INVESTMENT RESEARCH A DOW JONES INDEX THAT CONSISTS CHIEFLY OF COPPER STOCKS INCLUDING MAGMA IS DOWN 115 THIS YEAR BUT A FEW INVESTORS SAY THE HERD IS WRONG IN A MARKET IN WHICH BARGAINS ARE HARD TO COME BY THEY'RE BUYING MAGMA ON A BET THAT THE STOCK WHICH CLOSED YESTERDAY AT 11 1/4 JUST ABOVE BOOK VALUE WILL RISE AMID A WORLDWIDE ECONOMIC RECOVERY IN COMING YEARS MAGMA IS CHEAP STATISTICALLY SAYS DELPHI MANAGEMENT'S SCOTT BLACK A SOCALLED VALUE INVESTOR WHO HUNTS FOR STOCKS WITH BEATENDOWN PRICES MAGMA'S STOCK PRICE IS ONLY 12 TIMES REPORTED PERSHARE EARNINGS HALF THE LEVEL OF THE OVERALL MARKET THE BOSTONBASED MONEY MANAGER HOLDS 400000 SHARES AND SAYS HE WAS BUYING MORE YESTERDAY THOUGH HE CAUTIONS YOU DON'T BUY IT BASED ON THE FACT THAT IT'S GOING UP TOMORROW BUT FOR THE LONGERTERM HOPE OF A RECOVERY IN EUROPE OTHER MONEY MANAGERS HAVE ALSO NOTICED MAGMA'S LOW PRICETOEARNINGS MULTIPLE AND THE TUCSON ARIZ COMPANY'S REMARKABLE ABILITY TO CUT COSTS THIS IS GOING TO BE SOME CASHFLOW MACHINE SAYS S CHIN KIM PRESIDENT OF ALPINE CAPITAL MANAGEMENT IN ENGLEWOOD CLIFFS NJ WHO SAYS HE BOUGHT 10000 SHARES A FEW WEEKS AGO ALTHOUGH SOME COMMODITY TRADERS HE KNOWS ARE DOWN ON THE STOCK I'M LOOKING AT THIS AS A CONTRARIAN MR KIM SAYS MR KIM'S TARGET IS FOR MAGMA STOCK TO RISE TO 16 TO 18 BY THE END OF 1994 MR BLACK HOPES FOR THE STOCK TO DOUBLE IN TWO TO THREE YEARS BOTH MEN ARE IMPRESSED WITH HOW MAGMA HAS TRIMMED ITS COST OF PRODUCTION FROM 71 ENTS A POUND AT YEAREND 1991 TO 66 CENTS CURRENTLY WITH A GOAL OF 60 CENTS IN THE NEXT COUPLE OF QUARTERS A MAGMA SPOKESWOMAN SAYS SO EVEN THOUGH COPPER PRICES ARE DRAGGING ALONG AT ONLY 855 CENTS A POUND IF THERE'S A SLIGHT IMPROVEMENT IN THE ECONOMY THE LEVERAGE WORKS TREMENDOUSLY IN THEIR FAVOR SAYS MR KIM FROM WHERE WILL COPPER DEMAND SUDDENLY MATERIALIZE MAJOR CONSTRUCTION PROJECTS IN A REVITALIZED GERMANY FOR EXAMPLE OR IN DEVELOPING COUNTRIES SAY THE BULLS IN MIDJULY BEAR STEARNS ANALYST ANTHONY RIZUTTO RAISED HIS INVESTMENT RATING ON MAGMA TO BUY FROM HOLD AND BOOSTED PHELPS DODGE AND CYPRUS MINERALS TO STRONG BUY FROM BUY HE CITED EXPECTATIONS FOR A COPPER PRICE OF 105 A POUND MAGMA ITSELF SAYS IT ANTICIPATES PRICES ABOVE 1 FOR NEXT YEAR BUT PAINEWEBBER'S BERNARD SAVAIKO SAYS SUCH PRICES WON'T BE REACHED UNLESS THE ECONOMIES OF THE US AND EUROPE SUDDENLY BECOME VERY ROBUST MOST OF WALL STREET ISN'T AS ENTHUSIASTIC AS MESSRS BLACK AND KIM SG WARBURG RECENTLY LOWERED ITS INVESTMENT RATINGS ON MAGMA AND OTHER METALS STOCKS IT CITED DEPRESSED DEMAND IN A SLUGGISH GLOBAL ECONOMY ALTHOUGH IT THINKS THE BOTTOM OF THE METAL CYCLE IS BEHIND US FIDELITY INVESTMENTS' HUGE MAGELLAN FUND WHICH BOUGHT 512000 MAGMA SHARES IN THE FIRST QUARTER ACCORDING TO REGULATORY FILINGS HAS SOLD THAT ENTIRE POSITION ACCORDING TO A FIDELITY SPOKESMAN FIDELITY WON'T SAY WHY THOUGH THE HOLDING AT LESS THAN 6 MILLION WAS TINY BY MAGELLAN'S STANDARDS OTHERS ON WALL STREET HAVE SIMILARLY RETREATED FROM COPPER SHARES TWO WEEKS AGO METALS ANALYST VAHID FATHI OF KEMPER SECURITIES CHICAGO DOWNGRADED TO HOLD ALL NONGOLD METALS STOCKS INCLUDING COPPER ISSUES MAGMA CYPRUS PHELPS DODGE AND ASARCO HE CITED SLUGGISH DEMAND PARTICULARLY IN CHINA WHICH HE SAYS HAS CAUSED AN IMBALANCE IN THE MARKETPLACE FOR COPPER NEXT YEAR'S EARNINGS FOR COPPER PRODUCERS ARE PROBLEMATIC MR FATHI SAID YESTERDAY IN AN INTERVIEW HE ANTICIPATES FURTHER DOWNWARD REVISIONS IN EARNINGS ESTIMATES FOR 1994 AND COPPER STOCK PRICES AT THIS POINT DO NOT REFLECT THAT POSSIBILITY HE WARNS HE SAYS MAGMA EARNINGS COULD BE AS LOW AS 75 CENTS A SHARE FOR 1994 AND AT THAT LEVEL THE STOCK ISN'T SO CHEAP STILL EVEN MR FATHI IS A LONGTERM FAN OF MAGMA AND OTHER COPPER PRODUCERS THAT IS JUST THE POINT OF BULLS SUCH AS DELPHI'S MR BLACK WHO SAY THEY'RE HOLDING ON FOR THE LONG HAUL MAGMA'S MANAGEMENT HAS DONE EVERYTHING RIGHT MR FATHI SAYS IF WE WERE BULLISH ON COPPER MAGMA WOULD PROBABLY HAVE BEEN ONE OF THE COPPER STOCKS I'D GIVE TOP PRIORITY YEAR ENDED DEC 31 1992 SECOND QUARTER JUNE 30 1993 NOTE PERSHARE FIGURES ARE FULLY DILUTED 9309080044 930908 FOUNDATION HEALTH GETS WORK RANCHO CORDOVA CALIF FOUNDATION HEALTH CORP SAID ITS ASSOCIATED CLAIMS MANAGEMENT INC UNIT RECEIVED A THREEYEAR CONTRACT TO MANAGE PACIFIC BELL'S WORKERS' COMPENSATION PROGRAM FOUNDATION A PROVIDER OF MANAGED HEALTHCARE SERVICES DECLINED TO DISCLOSE THE VALUE OF THE CONTRACT BUT SAID IT WAS ONE OF THE LARGEST CONTRACTS OF ITS TYPE IN CALIFORNIA ASSOCIATED CLAIMS WILL PROVIDE CLAIMS PROCESSING MANAGED CARE AND OTHER SERVICES RELATED TO WORKERS' COMPENSATION FOR THE TELEPHONE COMPANY WHICH IS A UNIT OF SAN FRANCISCO'S PACIFIC TELESIS GROUP IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOUNDATION CLOSED DOWN 125 AT 2125 A SHARE 9309080043 930908 IMC FERTILIZER GROUP INC NORTHBROOK ILL IMC FERTILIZER GROUP INC SAID IT AGREED TO PURCHASE 220 MILLION OF ITS PRINCIPAL SUBSIDIARY'S 1125 NOTES FROM PRUDENTIAL INSURANCE CO OF AMERICA FOR 250 MILLION THE FERTILIZER CONCERN SAID IT PLANS TO REFINANCE THE NOTES WHICH WERE ORIGINALLY SCHEDULED TO BE DUE IN ANNUAL INSTALLMENTS FROM 1995 TO 2004 BY ISSUING NEW DEBT EQUITY OR EQUITYRELATED SECURITIES OF THE COMPANY IMC SAID THE TRANSACTION GIVES IT THE OPPORTUNITY TO LESSEN ITS DEBT LOAD AT THE OPERATING COMPANY LEVEL IT SAID THE COMPANY SHOULD BENEFIT ECONOMICALLY DUE TO THE MORE FAVORABLE ENVIRONMENT OF CURRENT FINANICAL MARKETS 9309080042 930908 LAW WHISTLEBLOWER LAW GETS DIRECT SUPPORT BY APPEALS COURT BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL A SAN FRANCISCO APPEALS COURT PANEL ISSUED THE FIRST APPEALS COURT RULING DIRECTLY UPHOLDING THE WHISTLEBLOWER PROVISIONS OF THE FEDERAL FALSE CLAIMS ACT THE DECISION RELEASED YESTERDAY BY A TRIO OF JUDGES OF THE COURT OF APPEALS FOR THE NINTH CIRCUIT REJECTED A SERIES OF ARGUMENTS BY ATTORNEYS FOR BOEING CO THAT SOCALLED QUI TAM PROVISIONS VIOLATE DUE PROCESS SEPARATION OF POWERS AND OTHER CONSTITUTIONAL PROTECTIONS THE CASE INVOLVES A WHISTLEBLOWER AT THE AIRCRAFT COMPANY THE JUDGES AMONG OTHER THINGS FOUND THAT WHISTLEBLOWERS HAVE STANDING TO SUE UNDER THE LAW PARTLY BECAUSE OF THE STRESS ANXIETY AND MENTAL ANGUISH THEY FACE FROM FEAR OF BEING FIRED OR OTHERWISE PUNISHED BY EMPLOYERS IN ADDITION THE PANEL FOUND THAT THERE IS NO ABSOLUTE RULE THAT ONLY THE EXECUTIVE BRANCH HAS THE POWER TO PROSECUTE VIOLATIONS OF LAW THE ISSUE OF WHISTLEBLOWERS' RIGHTS TO SUE AND COLLECT DAMAGES UNDER THE FALSE CLAIMS ACT HAS BEEN CLOSELY WATCHED BY INDUSTRY ESPECIALLY AEROSPACE COMPANIES AND OTHER DEFENSE CONTRACTORS THAT FACE A BARRAGE OF SUCH LITIGATION WHILE SEVERAL LOWER COURTS HAVE UPHELD THE CONSTITUTIONALITY OF THE WHISTLEBLOWER PROVISIONS THE NINTH CIRCUIT OPINION MARKS THE FIRST TIME AN APPEALS PANEL HAS FLATLY UPHELD THEM IN THE FACE OF LENGTHY AND DIRECT ATTACKS BY INDUSTRY PLAINTIFF LAWYERS TOO HAD BEEN WAITING FOR THE DECISION AS A BELLWETHER OF HOW JUDGES IN THE FUTURE MAY VIEW PRIVATE SUITS ALLEGING FRAUD OR OVERCHARGES ON GOVERNMENT CONTRACTS THE BOEING CASE ALSO HAD SOME UNUSUAL POLITICAL OVERTONES BECAUSE OF INDUSTRY EFFORTS TO SHOW THAT THE JUSTICE DEPARTMENT ITSELF HAD MISGIVINGS ABOUT CERTAIN OF THE LAW'S PROVISIONS OVER THE YEARS PREVIOUS ADMINISTRATIONS IN FACT HAVE ATTACKED THE QUI TAM PROVISIONS AND ASSERTED THAT WHISTLEBLOWERS WEREN'T ENTITLED TO SOME OF THE MULTIMILLIONDOLLAR JUDGMENTS THEY RECEIVED IN THIS INSTANCE ATTORNEYS FOR THE WHISTLEBLOWER INTRODUCED DOCUMENTS INDICATING THAT THE CLINTON ADMINISTRATION SUPPORTS THE CURRENT PROVISIONS AS A VALUABLE LAWENFORCEMENT TOOL ACCORDING TO THE JUDGES THE EXECUTIVE BRANCH STILL RETAINS SUFFICIENT POWER UNDER THE LAW TO PREVENT WHISTLEBLOWERS FROM IMPERMISSIBLY UNDERMINING EXECUTIVE FUNCTIONS AND THE DECISION FOUND THAT PRIVATE INTEREST AND THE PUBLIC'S INTEREST IN ENFORCING THE FALSE CLAIMS ACT ARE INTERTWINED RATHER THAN IN CONFLICT 9309080041 930908 ARBOR NATIONAL HOLDINGS INC WESTBURY NY MORTGAGE BANKING COMPANY ARBOR NATIONAL HOLDINGS INC SAID ITS MORTGAGE SERVING PORTFOLIO TOTALED 42 BILLION AT THE END OF AUGUST MORE THAN DOUBLE THE YEAREARLIER FIGURE OF 16 BILLION THE INCREASE REFLECTS AN INCREASE IN ORIGINATIONS AND A LOW RUNOFF RATE OR PAYOFFS OF MORTGAGES IN THE PORTFOLIO AS WELL AS RETAINING SERVICING RIGHTS TO AN INCREASED PERCENTAGE OF LOAN ORIGINATIONS 9309080040 930908 AMR UNIT'S AUGUST TRAFFIC FELL FORT WORTH TEXAS AMERICAN AIRLINES SAID ITS AUGUST TRAFFIC DECLINED 10 BECAUSE OF INFLATED TRAFFIC FROM LAST YEAR'S HALFPRICE SALE THE AIRLINE FLEW 937 BILLION REVENUE PASSENGER MILES DOWN FROM 1045 BILLION MILES FOR AUGUST 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ALSO FELL TO 66 FROM 77 FOR THE FIRST EIGHT MONTHS OF THE YEAR AMERICAN AIRLINES THE PRINCIPAL AIRLINE UNIT OF AMR CORP REPORTED TRAFFIC INCREASED 22 TO 667 BILLION REVENUE PASSENGER MILES FROM 653 BILLION THE YEAR BEFORE LOAD FACTOR FELL TO 62 FROM 65 9309080039 930908 HARRIS CORP STOCK BUYBACK MELBOURNE FLA HARRIS CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 15 MILLION OF ITS COMMON SHARES THE COMPANY SAID IT WILL BUY THE SHARES PERIODICALLY IN THE OPEN MARKET AND USE THEM FOR ITS EMPLOYEE RETIREMENT AND INCENTIVE PROGRAMS HARRIS WHICH HAS INTERESTS IN ELECTRONICS AND COMMUNICATION SYSTEMS HAS ABOUT 394 MILLION COMMON SHARES OUTSTANDING 9309080038 930908 CIRCUIT CITY SALES UP 26 RICHMOND VA CIRCUIT CITY STORES INC A RETAILER OF BRANDNAME CONSUMER ELECTRONICS GOODS AND APPLIANCES REPORTED A 26 INCREASE IN AUGUST SALES TO 311 MILLION FROM 248 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 6 IN THE MONTH WHICH INCLUDED ONE LESS SATURDAY THAN LAST YEAR 9309080036 930908 BUSINESS BRIEF NIKKO KYODO CO COMPANY PLANS TO LIQUIDATE TWO SUBSIDIARIES IN US NIKKO KYODO CO A REFINING COMPANY IN JAPAN SAID IT PLANS TO LIQUIDATE TWO US SUBSIDIARIES INCURRING A CHARGE OF ABOUT 90 BILLION YEN 8596 MILLION THE COMPANY CITED THE DETERIORATION IN DEMAND FROM SUCH ENDUSERS AS COMPUTERS AND OTHER ELECTRONICS MAKERS FOR DECIDING TO CLOSE GOULD INC A MAJOR MAKER OF COPPERPLATING AND ITS HOLDING COMPANY NIPPON MINING US INC BUT NIKKO KYODO SAID IT PLANS TO CREATE TWO NEW US COMPANIES FROM GOULD INC GOULD ELECTRONICS INC AND GOULD INSTRUMENT SYSTEMS INC BOTH TO BE IN OHIO NIPPON MINING US WILL BE DISSOLVED BY THE PARENT NIKKO KYODO SAID THAT IT WILL SELL SUCH ASSETS AS IDLE PROPERTY AND SECURITIES TO OFFSET THE CHARGE WHICH REFLECTS IRRECOVERABLE COSTS ASSOCIATED WITH GOULD 9309080035 930908 TECHNOLOGY DESTRON/IDI GRANTED PATENTS BOULDER COLO DESTRON/IDI INC SAID IT HAS BEEN GRANTED PATENTS IN THE US EUROPE AND NEW ZEALAND FOR ITS SYRINGEIMPLANTED ANIMAL IDENTIFICATION DEVICE THE COMPANY SAID THE TRANSPONDER IS INJECTED UNDER THE SKIN OF AN ANIMAL TO GIVE IT A PERMANENT IDENTIFICATION CODE THAT CAN BE READ WITH A SCANNER DESTRON SAID ITS EUROPEAN PATENTS COVER THE DEVICE IN BELGIUM FRANCE GERMANY ITALY THE NETHERLANDS SWITZERLAND AND THE UNITED KINGDOM 9309080034 930908 BUSINESS BRIEF NYNEX CORP STATE ATTORNEY ASKS OFFICIALS TO FORCE IMPROVED SERVICE THE NEW YORK STATE ATTORNEY GENERAL ASKED REGULATORS TO FORCE NYNEX CORP TO IMPROVE ITS TELEPHONE CUSTOMER SERVICE WHICH MAY AFFECT NYNEX'S RATES NYNEX'S TELEPHONE UNIT NEW YORK TELEPHONE HAS THE WORST SERVICE QUALITY OF THE STATE'S 40 LOCAL TELEPHONE COMPANIES ATTORNEY GENERAL ROBERT ABRAMS SAID MR ABRAMS'S OFFICE PRESENTED ITS ARGUMENTS IN TESTIMONY FILED ON NEW YORK TELEPHONE'S RATE REQUEST FOR 1994 UNDER WHICH THE COMPANY WANTS MORE FLEXIBILITY IN SETTING ITS RATES A SPOKESMAN FOR NYNEX ACKNOWLEDGED THAT SERVICE DURING JULY AND AUGUST SUFFERED AND BLAMED THE DETERIORATION ON RAINS AND THE DISCONTINUATION OF OVERTIME PAY FOR REPAIR WORKERS THE SPOKESMAN NOTED HOWEVER THAT SERVICE RESULTS FLUCTUATE BY SEASON AND A YEAROVERYEAR COMPARISON FOR THE FIRST HALF OF 1993 SHOWED IMPROVEMENTS IN SERVICE NYNEX ALSO HAS RESTORED OVERTIME PAY FOR REPAIR WORKERS HE SAID BUT KEITH GORDON ASSISTANT ATTORNEY GENERAL SAID SERVICE HAD FALLEN FROM INADEQUATE TO DEPLORABLE AND COULD LEAD TO LOWERING RATES 9309080033 930908 BUSINESS BRIEF REYNOLDS METALS CO EXPANSION IN SOUTH AMERICA IS TO BOOST FACTORY CAPACITY REYNOLDS METALS CO WILL MORE THAN DOUBLE ITS ALUMINUMCANMAKING CAPACITY IN SOUTH AMERICA BY LATE 1995 FOLLOWING COMPLETION OF TWO NEW FACTORIES AND EXPANSION OF AN EXISTING PLANT THE NEW OPERATIONS WILL BE PART OF REYNOLDS'S BRAZILIAN AFFILIATE LATASA DE ALUMINIO SA IN WHICH REYNOLDS OWNS A 35 INTEREST THE RICHMOND VA ALUMINUM MAKER WOULDN'T DISCLOSE THE COST OF THE EXPANSION WHICH IS EXPECTED INCREASE TO ITS PRESENT CAPACITY FROM 13 BILLION CANS ANNUALLY TO 31 BILLION CONSTRUCTION BEGINS THIS MONTH ON A NEW PLANT IN CHILE WHICH WILL HAVE AN INITIAL CAPACITY OF 450 MILLION CANS PER YEAR WHEN IT IS COMPLETED IN THE 1995 SECOND QUARTER CONSTRUCTION BEGAN IN JULY FOR LATASA'S SECOND ALUMINUMCAN PLANT IN BRAZIL WHICH WILL HAVE CAPACITY TO PRODUCE 900 MILLION CANS PER YEAR WHEN IT BEGINS OPERATIONS IN THE 1994 FOURTH QUARTER ITS FIRST BRAZILIAN PLANT IS BEING EXPANDED FROM THE CURRENT 13 BILLION CANS PER YEAR TO 18 BILLION 9309080032 930908 WHO'S NEWS QVC NETWORK INC QVC NETWORK INC WEST CHESTER PA JAMES G HELD 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT IN CHARGE OF NEW BUSINESS DEVELOPMENT A NEW POSITION MR HELD COMES TO THE 24HOUR CABLE NETWORK AFTER A 10YEAR CAREER AT BLOOMINGDALES A UNIT OF FEDERATED DEPARTMENT STORES INC 9309080031 930908 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DELTA AIR LINES A SHELF OFFERING OF UP TO 466470000 OF DEBT MICROCHIP TECHNOLOGY INC AN OFFERING OF 18 MILLION SHARES OMNICARE INC AN OFFERING OF 50 MILLION OF CONVERTIBLE SUBORDINATED NOTES VIA FIRST BOSTON CORP MONTGOMERY SECURITIES AND WILLIAM BLAIR & CO OPINION RESEARCH CORP AN INITIAL OFFERING OF 19 MILLION COMMON SHARES VIA ADVEST INC AND LADENBURG THALMANN & CO PENNZOIL CO AN OFFERING OF FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS MERRIL LYNCH & CO AND SMITH BARNEY SHEARSON INC 9309080030 930908 MOVIE TOUGH GUY FIGHTS CRIME FOR REAL IN THE PHILIPPINES MATINEE IDOL JOSEPH ESTRADA IN DUAL ROLE AS POLITICIAN IS STILL QUICK ON THE TRIGGER BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL MANILA PHILIPPINES THE DISTINGUISHED GUESTS ARE RESTLESS CONGRESSMEN AND INDUSTRIALISTS SQUIRM POLITELY IN THEIR STIFFBACKED CHAIRS WAITING FOR THE START OF AN ECONOMIC CONFERENCE SUDDENLY SECURITY MEN BARGE IN PISTOLS IN THEIR BELTS UZIS IN THEIR BAGS A BAND BEGINS TO PLAY PRESIDENT FIDEL V RAMOS ENTERS BUT ALL EYES SWIVEL TO HIS HEAVILY GUARDED COMPANION FORMER MATINEE IDOL JOSEPH E ESTRADA THE NATION'S VICE PRESIDENT AT THE LECTERN MR ESTRADA BOWS HIS BLACK POMPADOUR IN PRAYER FOR THE AILING ECONOMY THEN OFFERS HIS PRESCRIPTION FIGHT CRIME THIS IS THE SUPREME EXPRESSION OF THE TRIUMPH OF OUR POLITICAL WILL MR ESTRADA CONFIDENTLY DECLARES IN HIS SCREENSTAR BARITONE HE'S WONDERFUL SAYS A SERIOUSLOOKING ECONOMIST WHO HAS SEEN MANY OF MR ESTRADA'S MOVIES HE'S TOUGH AND HE KNOWS WHAT PEOPLE WANT TO HEAR THE MAN SAYS FILMS HAVE GLAMORIZED THE CARNAGE THAT HAS MADE THIS GUNHAPPY COUNTRY OF 60 MILLION THE CRIME CAPITAL OF ASIA MOVIES LIKE MASSACRE I'LL EXTERMINATE YOUR LINEAGE AND YOU'RE WORTH JUST ONE BULLET WITH ITS SEQUEL YOU'RE WORTH JUST ONE BULLET PART II ARE POPULAR DISTRACTIONS FROM POVERTY FIVEHOURADAY POWER BLACKOUTS AND NATURAL DISASTERS BUT THE CINEMA ALSO HAS PRODUCED CRIME'S BIGGEST ENEMY MR ESTRADA WITH HIS ELVIS PRESLEY HAIR DARK MUSTACHE AND COCKED EYEBROWS HE SPENT NEARLY THREE DECADES PLAYING VIGILANTES AND GOODHEARTED TOUGH GUYS NOW HE HAS AN EVEN BETTER ROLE AS CHAIRMAN OF MR RAMOS'S PRESIDENTIAL ANTICRIME COMMISSION HE IS PLAYING IT TO THE HILT HE PACKS A 9MM SMITH & WESSON SEMIAUTOMATIC OF COURSE I KNOW HOW TO USE IT HE SAYS I'M AN ACTION STAR AND HE TRAVELS IN A PARADE OF ARMED BODYGUARDS NEWSPAPERS CALL HIM CHIEF CRIMEBUSTER OR ELSE THEY USE HIS CELEBRITY NICKNAME ERAP IT'S THE TAGALOG WORD PARE MEANING BUDDY SPELLED BACKWARD THEY OCCASIONALLY OMIT MENTIONING THAT HE IS VICE PRESIDENT OF THE PHILIPPINES HE'S MORE POPULAR THAN ANY OTHER POLITICIAN ASSERTS FERDINAND M RAMOS A MANILA BULLETIN REPORTER WHO NOTES THAT MR ESTRADA GOT MORE THAN TWICE AS MANY VOTES FOR VICE PRESIDENT IN THE 1992 ELECTIONS AS FIDEL RAMOS DID FOR PRESIDENT HE SOMETIMES ASKS IF NEWSPAPER CIRCULATION IS GOING DOWN WHEN HE'S NOT IN THE HEADLINES THE FORMER ACTOR SPIKES THE NEWS WITH DRAMA LAST YEAR MR ESTRADA INVITED TWO POLICE COMMANDERS INCLUDING THE HEAD OF AN ANTIKIDNAPPING TASK FORCE TO A PRESS CONFERENCE AT HIS SPRAWLING HOUSE WHEN THEY ARRIVED HE ARRESTED BOTH FOR INVOLVEMENT IN A SPATE OF RANSOMKIDNAPPINGS THIS YEAR HE BUSTED THE COUNTRY'S TOP ANTINARCOTICS GENERAL AND ACCUSED HIM OF DRUG TRAFFICKING I LIKE TO CATCH BIG FISH MR ESTRADA BOASTS WHATEVER I SEE I CATCH NO COMPROMISE THAT ISN'T JUST BRAVADO IN ONE YEAR ON THE JOB MR ESTRADA SAYS HIS 120 LAWENFORCERS HAVE MADE 118 ARRESTS ACCEPTED 52 SURRENDERS AND KILLED 48 SUSPECTS AMONG THE DEAD ALFREDO JOEY DE LEON THE MOSTWANTED LEADER OF THE RED SCORPION KIDNAPPING GANG WHOSE BULLETRIDDLED CORPSE MR ESTRADA PERSONALLY INSPECTED AFTER RESPECTFULLY REMOVING HIS MOVIESTAR SUNGLASSES SO FAR THE COMMISSION'S WORK HAS RESULTED IN JUST FOUR CONVICTIONS BUT MR ESTRADA BLAMES THAT ON THE SLOW PACE OF PHILIPPINE JUSTICE I ENVY CRIMINAL JUSTICE IN THE US HE SAYS THINKING PERHAPS OF MOVIES HE HAS SEEN NO MATTER WHO YOU ARE THEY HANDCUFF YOU SO QUICKLY LIKE MIKE TYSON THAT'S WHAT WE NEED HERE THE CERTAINTY OF PUNISHMENT CRITICS FEAR MR ESTRADA'S TEAM MAY BE IMPOSING THAT CERTAINTY A GENERAL'S SON LAST WEEK FILED FALSEARREST CHARGES AGAINST MR ESTRADA AND EIGHT OF HIS MEN AFTER MR ESTRADA ACCUSED HIM OF INVOLVEMENT IN A CONTRACT KILLING LAST YEAR MR ESTRADA'S FORCE GUNNED DOWN FOUR MEN IN A RUSHHOUR SHOOTOUT WITH SUSPECTED DRUG TRAFFICKERS LATER INVESTIGATIONS SHOWED THAT AT LEAST ONE HAD BEEN SHOT IN THE HEAD FROM TWO INCHES AWAY MR ESTRADA ACKNOWLEDGES THAT HIS MEN DO THEIR JOBS WITH A CERTAIN EXUBERANCE HE HAS BEEN QUOTED AS SAYING SOMETIMES IT IS BETTER NOT TO TAKE PRISONERS THE CASE CAUSED FRICTION WITH OTHER LAWENFORCEMENT AGENCIES BECAUSE TWO OF THE DEAD TURNED OUT TO BE POLICE OFFICERS EPIMACO VELASCO DIRECTOR OF THE NATIONAL BUREAU OF INVESTIGATION THOUGHT MR ESTRADA'S MEN SHOULD HAVE BEEN PROSECUTED MR ESTRADA IS UNAPOLOGETIC HE REFERS TO THE POLICEMEN AND OFFICIALS HIS MEN GO AFTER AS HOODLUMS IN UNIFORMS OR HOODLUMS IN ROBES HAVING SEEN HIS MEN GUN DOWN COPS MR ESTRADA NOW WANTS TO REBUILD THE PEOPLE'S FAITH IN THE POLICE AT HIS COMMAND CENTER ADJOINING THE PHILIPPINE SENATE A SIGN ON A CARDBOARD BOX OUTSIDE MR ESTRADA'S OFFICE ASKS VISITORS TO PLEASE LEAVE YOUR GUNS HERE MR ESTRADA'S STAFF MEETS NIGHTLY OVER TAKEOUT CHINESE FOOD OR HAMBURGERS TO TALK STRATEGY THE LATEST IDEA HAVE POLICEMEN GIVE DRUGAWARENESS TALKS IN HIGH SCHOOLS MR ESTRADA STARTED FIGHTING DRUG ABUSE IN 1972 WHEN HE MADE A MOVIE CALLED KILL THE PUSHER ONE RECENT EVENING IN HIS OFFICE HE TRIED A SUBTLER APPROACH SUGGESTING TO CHARI LAO BAGATSING THE VISITING WIFE OF A LOCAL CONGRESSMAN THAT SHE HAND OUT TSHIRTS SAYING DARE TO RESIST DRUGS MODELED ON A US CAMPAIGN OBVIOUSLY FLATTERED BY HIS ATTENTION SHE HELD UP THE STARK BLACK SHIRT AND SQUEALED ISN'T THIS NICE THAT MR ESTRADA WHO HAS BEEN A POLITICIAN AS WELL AS AN ACTOR SINCE HE WAS ELECTED MAYOR OF THE TOWN OF SAN JUAN IN 1968 HAS MADE SUCH A PUBLICRELATIONS SUCCESS OF THE ANTICRIME COMMISSION PLEASES HIS FRIENDS THEY FEARED PRESIDENT RAMOS IN NAMING HIM TO HEAD THE COMMISSION MIGHT HAVE LAID A TRAP TO CATCH HIS NO 2 IN AN IMPOSSIBLE AND RISKY BUSINESS MY FIRST REACTION WAS OH BOY THEY MUST REALLY WANT TO GET RID OF THE VICE PRESIDENT TO ENDANGER HIS LIFE LIKE THIS' SAYS SEN NIKKI COSETENG AN OUTSPOKEN LAWANDORDER ADVOCATE WHO PLAYED OPPOSITE MR ESTRADA IN A 1988 MOVIE IN THE CLAWS OF THE EAGLE THE RISKS MS COSETENG SPEAKS OF ARE REAL IN JANUARY THIS YEAR MR ESTRADA AND HIS ENTOURAGE WERE ATTACKED WITH GRENADES ONE POLICEMAN WAS INJURED BUT THE TOUGHTALKING MR ESTRADA IS FATALISTIC PEOPLE TELL ME TO BE CAREFUL HE SAYS I TELL THEM PRESIDENT KENNEDY WAS SURROUNDED BY THE MOST SOPHISTICATED SECURITY MEN BUT IT WAS HIS TIME' IF IT'S MY TIME I'LL GET IT A BIGGER THREAT MAY BE CHARACTER ASSASSINATION ONE TELEVISION NEWSCASTER HICCUPED THROUGH A REPORT ON MR ESTRADA IMPLYING THAT THE VICE PRESIDENT DRINKS TOO MUCH MR ESTRADA DENIES THAT BUT ADMITS JOHNNY WALKER BLACK LABEL IS HIS FAVORITE BEVERAGE ANOTHER JOKE HAS IT THAT MR ESTRADA WEARS A SWEATBAND ON HIS RIGHT WRIST NOT TO COVER A WOUND INCURRED IN A MOVIE SWORDFIGHTING ACCIDENT AS HE CLAIMS BUT TO REMEMBER WHICH HAND IS WHICH WITH SUCH A COLORFUL LIFE THOUGH MR ESTRADA DOESN'T NEED TO FABRICATE A REPUTATION AS A TEETOTALER INTELLECTUAL HIS IMAGE GETS BURNISHED IN OTHER WAYS HIS 53YEAROLD BROTHER JESSE IS FINISHING UP AN ACTION MOVIE ABOUT TASK FORCE HABAGAT THE CRACK ARMED UNIT OF THE ANTICRIME COMMISSION AND WHO WILL PLAY THE PART OF MR ESTRADA AN OFFSCREEN VOICE IN THE MOVIE MY BROTHER WILL JESSE SAYS NOBODY COULD POSSIBLY IMITATE HIM 9309080029 930908 CLINTON'S CAPS ON MEDICARE MEDICAID WOULD SAVE 238 BILLION AIDES SAY BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE MEDICARE AND MEDICAID SPENDING CAPS THAT PRESIDENT CLINTON PLANS TO PROPOSE WOULD WRING 238 BILLION FROM THE TWO PROGRAMS IN THE FIRST FIVE YEARS OF HIS HEALTHCARE PLAN ADMINISTRATION OFFICIALS TOLD DEMOCRATIC SENATE STAFFERS SUCH AMOUNTS DWARF THE 56 BILLION FIVEYEAR REDUCTIONS IN PROJECTED SPENDING ON MEDICARE AND MEDICAID THAT CONGRESS APPROVED RECENTLY AFTER BITTER SPARRING IN THE BUDGET DEBATE AND THE ADDITIONAL SAVINGS ALREADY ARE AROUSING SOME SKEPTICISM AND RESISTANCE AMONG MEMBERS OF THE PRESIDENT'S OWN PARTY THE CAPS WOULD LIMIT SPENDING INCREASES ON THE PUBLIC HEALTH PROGRAMS FOR THE ELDERLY DISABLED AND POOR TO THE GENERAL INFLATION RATE PLUS THE RATE OF GROWTH IN EACH PROGRAM'S POPULATION AND POSSIBLY AN ADDITIONAL PERCENTAGE POINT BY 1998 OR 1999 CURRENTLY MEDICARE OUTLAYS ARE GROWING MORE THAN 9 A YEAR AND MEDICAID MORE THAN 30 BUT SO FAR OFFICIALS HAVE OFFERED SCANT DETAILS OF HOW THEY PLAN TO MEET THE STRINGENT CEILINGS ADMINISTRATION OFFICIALS ALSO SAID THE PRESIDENT IS LIKELY TO PROPOSE REQUIRING WELLOFF SENIOR CITIZENS TO PAY A GREATER PORTION OF MEDICARE PREMIUMS FOR THE PART OF THE PROGRAM THAT COVERS DOCTOR BILLS AND OTHER OUTOFHOSPITAL COSTS CURRENTLY THE GOVERNMENT SUBSIDIZES 75 OF EVERY SENIOR'S PREMIUM DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON PROPOSED REQUIRING PEOPLE WITH ANNUAL INCOMES EXCEEDING 125000 TO PAY THE WHOLE PREMIUM UNDER THAT PROPOSAL THE PREMIUM FOR PHYSICIAN COVERAGE WOULD RISE TO 14660 A MONTH FOR WEALTHY MEDICARE BENEFICIARIES FROM THE CURRENT 3660 SIMILAR PROPOSALS TO TIE MEDICARE PREMIUMS TO BENEFICIARIES' ABILITY TO PAY WERE PROPOSED BY FORMER PRESIDENT BUSH BUT THEY NEVER CLEARED CONGRESS YESTERDAY THE ADMINISTRATION OFFICIALS TOLD DEMOCRATIC STAFFERS THAT SPECIFIC MEDICARE AND MEDICAID SPENDING CURBS WOULD BE OUTLINED IN A BRIEFING BOOK OF MORE THAN 200 PAGES THAT OFFICIALS ARE FINISHING ACCORDING TO PEOPLE AT THE SESSION THE OFFICIALS DECLINED TO DISCUSS DETAILS AS A RESULT MANY DEMOCRATS WHILE STILL LOYAL ARE ROLLING THEIR EYES AT THE NUMBERS BEING QUOTED BY THE ADMINISTRATION WHEN I FIRST HEARD ABOUT THEM I WAS ANGRY NOW I'M NERVOUS SAID REP HENRY WAXMAN D CALIF CHAIRMAN OF THE HEALTH SUBCOMMITTEE ON THE HOUSE ENERGY AND COMMERCE COMMITTEE I'M VERY CONCERNED THAT THE ADMINISTRATION'S HEALTHCARE PROPOSAL BE FUNDED SUFFICIENTLY BUT SOME OF THE SAVINGS FIGURES FLOATED AROUND MAY BE UNREALISTIC AND POLITICALLY UNACCEPTABLE REPUBLICANS MANY OF WHOM HAVE LONG SUPPORTED THE IDEA OF CAPPING ENTITLEMENT PROGRAMS SHARE SOME WARINESS ABOUT BOTH THE ADMINISTRATION'S MATH AND THE MEANS TO ITS END WHEN THEY TALK ABOUT THESE GREAT SAVINGS I DON'T KNOW SAID RHODE ISLAND SEN JOHN CHAFEE A FINANCE COMMITTEE MEMBER AND HEAD OF A GOP HEALTHARE TASK FORCE SOMETHING IS MISSING OTHER GOP LAWMAKERS HAILED THE CAPS ON PUBLIC PROGRAMS BUT WARNED AGAINST THE ADMINISTRATION'S INTENTION TO PROPOSE SIMILAR LIDS ON PRIVATE HEALTH INSURANCE PREMIUMS I LIKE THIS IDEA OF ONLY MEDICARE AND MEDICAID CAPS I THINK IT WILL FORCE US TO DEAL WITH THE ENTIRE PROBLEM SAID MINNESOTA SEN DAVID DURENBERGER IN THE SENATE BRIEFING OFFICIALS SAID THEY PLAN TO SQUEEZE 124 BILLION FROM MEDICARE AND 114 BILLION FROM MEDICAID OVER THE FIRST FIVE YEARS OF THE HEALTH PLAN ACCORDING TO PEOPLE WHO ATTENDED THE SESSION THE SAVINGS GENERALLY WOULD GO TOWARD FINANCING A NEW LONGTERM CARE PROGRAM AND A PRESCRIPTION DRUG BENEFIT FOR THE ELDERLY THEY SAID HOWEVER THE OFFICIALS ALSO SAID THAT ALL MEDICARE BENEFICIARIES WOULD BE REQUIRED TO ASSUME 25 OF THE COST OF THE NEW DRUG BENEFIT THROUGH HIGHER MEDICARE PREMIUMS THE BENEFIT WILL PAY FOR 80 OF PRESCRIPTION DRUG COSTS AFTER BENEFICIARIES MEET A 250 ANNUAL DEDUCTIBLE 9309080028 930908 RAWSTEEL OUTPUT FELL 18 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 18 LAST WEEK TO 1822000 TONS FROM 1856000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 109 FROM THE 1643000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 869 OF ITS CAPABILITY LAST WEEK COMPARED WITH 885 THE PREVIOUS WEEK AND 761 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9309080027 930908 MARKETING & MEDIA NOTED RECORD LABEL TIME WARNER INC'S ATLANTIC GROUP SIGNED THE UKBASED BEGGARS BANQUET INDEPENDENT MUSIC LABEL TO A US LICENSING AND DISTRIBUTION AGREEMENT EXPANDING TIME WARNER'S DISTRIBUTION DEALS WITH A VARIETY OF INDEPENDENT RECORD LABELS ARTISTS FROM THE INFLUENTIAL BRITISH LABEL WILL BE MARKETED EITHER THROUGH ATLANTIC RECORDS OR EASTWEST RECORDS AMERICA AND DISTRIBUTED THROUGH WEA CORP THE DISTRIBUTION ARM OF WARNER MUSIC GROUP SINCE 1987 BEGGARS BANQUET HAS BEEN DISTRIBUTED IN THE US BY BERTELSMANN AG'S RCA RECORDS 9309080026 930908 BUSINESS BRIEF SPIEGEL INC MERCHANDISER AGREES TO SELL EDDIE BAUER GOODS IN JAPAN SPIEGEL INC SAID IT AGREED TO FORM A JOINT VENTURE WITH OTTOSUMISHO INC TO SELL EDDIE BAUER PRODUCTS IN JAPAN IN ITS FIRST EFFORT ABROAD SPIEGEL A CATALOG CLOTHING MERCHANDISER BASED IN DOWNERS GROVE ILL PLANS TO LICENSE OTTOSUMISHO A JOINT VENTURE BETWEEN MAILORDER COMPANY OTTO VERSAND GMBH AND TRADING COMPANY SUMITOMO CORP TO SELL EDDIE BAUER PRODUCTS THROUGH RETAIL STORES AND CATALOGS SPIEGEL JOINS A GROWING NUMBER OF US RETAILERS THAT ARE LINKING WITH INTERNATIONAL PARTNERS TO EXPAND OVERSEAS AS THE MARKET HERE BECOMES MORE CROWDED THE EDDIE BAUER LINE INCLUDES SUCH APPAREL AS FLANNEL SHIRTS AND JACKETS THAT PROVIDE THE LOOK OF AN OUTDOORSMAN AS WELL AS CAMPING EQUIPMENT AND PIONEERSTYLE HOME FURNISHINGS SUCH AMERICANA IS EXPECTED TO BE A BIG HIT IN JAPAN WHERE SHOPPERS APPRECIATE US STYLES 9309080025 930908 CONGRESS WELCOMES PROPOSED REFORMS ALTHOUGH PARTISAN DIFFERENCES ABOUND BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MEMBERS OF CONGRESS EAGER TO REFORM THEIR OWN TATTERED IMAGES WITH THE PUBLIC WELCOMED THE CLINTON ADMINISTRATION'S PROPOSALS TO REFORM THE WAY THE FEDERAL GOVERNMENT DOES BUSINESS BUT THERE WAS A DISTINCT PARTISAN DIFFERENCE IN THE LEGISLATIVE REACTION TO THE RECOMMENDATIONS OF VICE PRESIDENT AL GORE'S NATIONAL PERFORMANCE REVIEW REPUBLICANS TRADITIONALLY MORE HOSTILE TO GOVERNMENT PROGRAMS ZEALOUSLY EMBRACED PROPOSALS TO REDUCE FEDERAL WASTE AND EMPLOYMENT WHILE EXPRESSING STRONG SKEPTICISM THAT THE WHITE HOUSE WILL DELIVER ON ITS PROMISES DEMOCRATS SOMEWHAT WARY OF CUTS THAT WOULD TARGET THEIR PET PROGRAMS AND CONSTITUENTS NONETHELESS SEEMED RESIGNED TO THE NEED TO RESPOND TO THE ANTIGOVERNMENT UPROAR FANNED MOST RECENTLY BY THE LIKES OF ROSS PEROT IF GOVERNMENT DOESN'T WORK IT OUGHT TO BE DEMOCRATS WHO FIX IT BECAUSE DEMOCRATS INVENTED GOVERNMENT IN THE FIRST PLACE SAID ELEANOR HOLMES NORTON THE DELEGATE REPRESENTING THE DISTRICT OF COLUMBIA AND ITS HEAVY CONCENTRATION OF FEDERAL EMPLOYEES THAT MS NORTON HERSELF PRAISED THE GORE REPORT WAS A REFLECTION OF THE BROAD APPEAL OF ATTACKING GOVERNMENT WASTE FOR LAWMAKERS AND THE ADMINISTRATION ALIKE THE CHALLENGE WILL BE TURNING THE OFTEN ABSTRUSE POLICY RECOMMENDATIONS INTO TANGIBLE RESULTS THAT HELP RESTORE PUBLIC CONFIDENCE IN THE GOVERNMENT THERE'S A STRONGER MOMENTUM TO CHANGE GOVERNMENT TODAY THAN THERE EVER HAS BEEN BEFORE SAID SEN JOHN GLENN CHAIRMAN OF THE GOVERNMENTAL AFFAIRS COMMITTEE BUT THE OHIO DEMOCRAT WHILE URGING THE ADMINISTRATION TO SEIZE THE MOMENT BY ENACTING SMALL PILOT PROGRAMS TO DEMONSTRATE RESULTS ACKNOWLEDGED HE ISN'T SURE WHAT LEGISLATION WOULD BE APPROPRIATE TO IMPROVE EFFICIENCY HOUSE AND SENATE REPUBLICANS ALIKE URGED PROMPT ACTION ON THE ADMINISTRATION PROPOSALS AND SIGNALED THEY WILL TURN UP PRESSURE ON PRESIDENT CLINTON TO FOLLOW THROUGH SEN PHIL GRAMM R TEXAS SAID HE WILL SOON OFFER AMENDMENTS DESIGNED TO ENSURE THAT THE CLAIMED REDUCTIONS OF 108 BILLION IN FEDERAL SPENDING OVER FIVE YEARS AND 252000 FEDERAL JOBS ACTUALLY MATERIALIZE BUT MR GRAMM AND OTHER REPUBLICANS CAUTIONED THAT OPPOSITION FROM TRADITIONMINDED CONGRESSIONAL DEMOCRATS AND SPECIAL INTERESTS MAY BUCKLE MR CLINTON'S COMMITMENT TO GO AGAINST THE GRAIN OF HIS PARTY NIXON ACTUALLY WENT TO CHINA OBSERVED SEN CONNIE MACK WHO WANTS CONGRESS TO SET UP A SPECIAL COMMISSION TO CUT DOMESTIC SPENDING AFTER THE FASHION OF THE DEFENSE BASECLOSING PANEL WE'RE WAITING TO SEE IF CLINTON WILL CUT WASTEFUL SPENDING THE FLORIDA REPUBLICAN SAID AND REPUBLICANS AREN'T THE ONLY SKEPTICS DEMOCRATIC ADVOCATES OF SPENDING CUTS FEAR THE PLAN WILL BE TAKEN UP IN FRAGMENTED FASHION ON CAPITOL HILL DILUTING ITS POLITICAL MOMENTUM AND IMPACT ALREADY MEMBERS OF THE POWERFUL APPROPRIATIONS COMMITTEES ARE GRUMBLING ABOUT THE REPORT'S PROPOSAL TO SHIFT TO BIENNIAL BUDGETS WHICH WOULD REDUCE THEIR DISCRETION OVER SPENDING DECISIONS EACH YEAR IF THEY SUBMIT IT PIECEBYPIECE IT WILL BE PICKED APART WARNED REP TIM PENNY D MINN AND NO ONE WILL KNOW AT THE END OF THE DAY THAT ANY REFORM OCCURRED MOREOVER SUCH CLINTON ALLIES AS THE CENTER ON BUDGET AND POLICY PRIORITIES A LIBERAL THINK TANK WARNED YESTERDAY THAT THE ADMINISTRATION ESTIMATES OF POTENTIAL SAVINGS MAY ULTIMATELY PROVE INFLATED PERHAPS BY A SUBSTANTIAL AMOUNT THAT REFRAIN WAS VOICED BY SUCH DEMOCRATS AS REP JAMES MORAN WHOSE SUBURBAN VIRGINIA DISTRICT LIKE MS NORTON'S RELIES HEAVILY ON FEDERAL EMPLOYMENT I WOULD JUST COUNSEL THE ADMINISTRATION NOT TO MAKE THE AMERICAN PEOPLE THINK IT'S GOING TO HAPPEN OVERNIGHT SAID REP MORAN WHO IS TO APPEAR WITH MR CLINTON TODAY WHEN THE PRESIDENT ADDRESSES FEDERAL WORKERS AT A GENERAL SERVICES ADMINISTRATION FACILITY IN VIRGINIA WITHIN MR CLINTON'S PARTY AN ADDED CONCERN IS THE IMPACT OF A SMALLER FEDERAL WORK FORCE ON MINORITIES WHO RELIED FOR YEARS ON GOVERNMENT EMPLOYMENT AS A SOURCE OF MIDDLECLASS JOBS MS NORTON SAID THE CONGRESSIONAL BLACK CAUCUS WILL MONITOR IMPLEMENTATION OF THE PROPOSALS FOR THEIR EFFECT ON BLACK WORKERS AS WELL AS ON EMPLOYMENT GENERALLY IN A STILLWEAK ECONOMY POLITICALLY A TEPID OUTCOME TO REFORM EFFORTS WOULD DAMAGE BOTH PARTIES' ATTEMPTS TO WOO THE LARGE BLOC OF PEROT SUPPORTERS WHO HAVE GROWN SO DISAFFECTED FROM GOVERNMENT THIS IS AT THE CORE OF THEIR ANGER SAID FORMER PEROT POLLSTER FRANK LUNTZ THE MAVERICK TEXAN HIMSELF WITHHELD IMMEDIATE COMMENT ON THE GORE EFFORT 9309080024 930908 BUSINESS BRIEF SOUTHWESTERN BELL CORP RESTRUCTURING CITED IN PLAN TO CUT 1500 MANAGER JOBS SOUTHWESTERN BELL CORP AS PART OF A WIDER RESTRUCTURING PLAN SAID ITS TELEPHONE OPERATIONS WILL ELIMINATE ABOUT 1500 MANAGEMENT JOBS OVER THE NEXT 18 TO 24 MONTHS ABOUT 800 OF THE POSITIONS WILL BE PHASED OUT BY MIDOCTOBER FOR WHICH THE BABY BELL WILL TAKE A CHARGE OF BETWEEN 30 MILLION AND 35 MILLION IN THE THIRD QUARTER OF 1993 A SPOKESMAN SAID IN THE 1992 THIRD QUARTER SOUTHWESTERN BELL WHICH IS BASED IN SAN ANTONIO EARNED 3856 MILLION OR 128 A SHARE THE COMPANY CURRENTLY EMPLOYS ABOUT 12600 PEOPLE IN MANAGEMENT POSITIONS EMPLOYEES AFFECTED BY THE JOB CUTS WILL RECEIVE SEVERANCE PAYMENTS OF UP TO A YEAR'S SALARY THE COMPANY SAID THE JOB CUTS ARE PART OF A RESTRUCTURING PLAN ANNOUNCED IN JULY AT THAT TIME THE COMPANY SAID IT WOULD COMBINE ITS SOUTHWESTERN BELL TELEPHONE CO OF THE MIDWEST SOUTHWESTERN BELL TELEPHONE CO OF TEXAS AND SOUTHWESTERN BELL SERVICES DIVISION INTO TWO NEW DIVISIONS 9309080023 930908 MARKETING & MEDIA ADVERTISING APPLE IS PITCHING THE PRACTICAL NEWTON BY KEVIN GOLDMAN APPLE COMPUTER MADE ADVERTISING HISTORY NEARLY A DECADE AGO WHEN IT AIRED A ONESHOT AD TO INTRODUCE ITS MACINTOSH PERSONAL COMPUTER THE AWARDWINNING SPOT SHOWN ON NATIONAL FOOTBALL LEAGUE'S 1984 SUPER BOWL WAS ARRESTING AND ARTSY BUT DIDN'T SAY ANYTHING ABOUT THE PRODUCT WITH ITS HOT NEW GADGET FOR THE 1990S APPLE IS TRYING A DECIDEDLY DIFFERENT TACK THIS WEEK IT BEGINS A BLITZ OF TELEVISION AND PRINT COMMERCIALS TO INTRODUCE THE NEWTON MES SAGEPAD ITS ENTRY IN THE FLEDGLING MARKET FOR HANDHELD COMPUTERS ALSO KNOWN AS PERSONAL DIGITAL ASSISTANTS INSTEAD OF THE SURREAL BRAVE NEW WORLD IMAGES THAT POSITIONED THE MACINTOSH AS AN UPSTART CHALLENGE TO GIANT IBM APPLE INUNDATES VIEWERS WITH PRACTICAL USES OF THE NEWTON'S IMPRESSIVE FEATURES SUCH AS THE ABILITY TO RECOGNIZE HANDWRITING SEND FAXES OVER PHONE LINES AND RECEIVE WIRELESS PAGER MESSAGES APPLE HAS GOOD REASON TO HONE IN ON FEATURES RATHER THAN IMAGEBUILDING NOW THE COMPUTER MAKER IS FIRST ON THE MARKET WITH THE PAPERBACKSIZED COMPUTERS BUT LATER THAN IT ORIGINALLY PROMISED BY EARLY 1994 FEROCIOUS COMPETITORS WITH MORE POWERFUL COMMUNICATORS SUCH AS COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC WILL BE ON THE SCENE APPLE ALSO NEEDS TO PERSUADE CONSUMERS THAT THE MESSAGEPAD IS WORTH ITS HEFTY PRICETAG THE BASE PRICE IS ABOUT 700 AT RETAIL AND A FULLY EQUIPPED MODEL WILL RUN BETWEEN 1200 AND 1500 BUT BY ADVERTISING NEWTON'S SPECIFIC FEATURES SO PROMINENTLY APPLE RUNS THE RISK OF PROMISING WHAT IT CAN'T COMPLETELY DELIVER THOUGH THE MESSAGEPAD HAS RECEIVED SOME EARLY IMPRESSIVE REVIEWS INCLUDING IN THIS NEWSPAPER'S PERSONAL TECHNOLOGY COLUMN MANY OF ITS HIGHLY TOUTED FEATURES SUCH AS HANDWRITING RECOGNITION STILL HAVEN'T BEEN PERFECTED AND SOME OF THE PROMISED FEATURES AREN'T EVEN AVAILABLE YET SUCH AS RECEIVING FAXES APPLE'S AD STRATEGY ILLUSTRATES THE DILEMMA FACING HIGHTECH ADVERTISERS IN THE RAPIDLY CONVERGING WORLD OF TELECOMMUNICATIONS ELECTRONICS AND ENTERTAINMENT COMPANIES MUST WALK A FINE LINE BETWEEN PREPARING CONSUMERS FOR A VASTLY EXPANDED WORLD OF NEW TECHNOLOGY OPTIONS AND PROMISING SOMETHING THEY CAN'T YET DELIVER AMERICAN TELEPHONE & TELEGRAPH FOR EXAMPLE DECIDED TO RISK CONFUSING CONSUMERS WITH ITS MUCHTALKED ABOUT SERIES OF COMMERCIALS WHICH SHOWS CONSUMERS FAXING FROM THE BEACH OR SAYING GOODNIGHT TO BABY FROM A VIDEOPHONE BOOTH THE AD ASKS WHETHER CONSUMERS EVER ENVISIONED PERFORMING SUCH FEATS ANSWERING YOU WILL AND THE COMPANY THAT WILL BRING IT TO YOU AT&T APPLE DECIDED ON THE TELLALL APPROACH IN ADVERTISING NEWTON FOR A SIMPLE REASON EXECUTIVES SAY WE'RE TRYING TO LAUNCH A NEW PRODUCT CATEGORY SAYS KEN WIRT DIRECTOR OF MARKETING FOR APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION THE STYLE OF THE COMMERCIAL IS TO INTRODUCE A LOT OF INFORMATION IN A SHORT PERIOD OF TIME NEWTON'S MAIN APPLICATION THE MES SAGEPAD A COMBINATION MINIWORDPROCESSOR AND DRAWING PROGRAM PRESENTS THE USER WITH AN ENDLESSLY SCROLLING ELECTRONIC NOTEBOOK THAT STORES WORDS OR PICTURES DRAWN ON IT WITH A PLASTIC STYLUS THE MACHINE'S HANDWRITINGRECOGNITION SYSTEM CAN BE USED TO TURN WRITTEN NOTES INTO PRINTED TEXT THE OTHER TWO BUILTIN PROGRAMS INCLUDE A CALENDAR FOR ENTERING APPOINTMENTS AND REMINDERS AND AN ADDRESS BOOK THE NEWTON SOFTWARE WHICH OFFERS THESE FEATURES WILL BE INCORPORATED INTO FUTURE NEWTON PRODUCTS AND APPLE HAS LICENSED THE NEWTON SOFTWARE TO SEVERAL COMPANIES THAT WILL BUILD IT INTO THEIR OWN PRODUCTS INCLUDING SMART PHONES WITH SCREENS THAT WILL FEATURE THE PENBASED NEWTON SOFTWARE ORIGINALLY APPLE WANTED TWO SEPARATE CAMPAIGNS ONE FOR NEWTON INTELLIGENCE THE SOFTWARE PROGRAMS AND THE OTHER FOR THE MESSAGEPAD COMPUTER THE TWO EFFORTS WERE MERGED HOWEVER SOME REVIEWERS HAVE CRITICIZED THE NEWTON FOR TAKING TOO MUCH TIME TO RECOGNIZE AND DECIPHER ITS USER'S HANDWRITING AND THE FEATURE HAS ALREADY BEEN LAMPOONED IN HIGHBROW COMIC STRIP DOONESBURY LAST MONTH THE STRIP'S TITLE CHARACTER BOUGHT A DIGITAL ASSISTANT THE NAME NEWTON ISN'T MENTIONED WHICH HAD TROUBLE RECOGNIZING HIS HANDWRITING I AM WRITING A SAMPLE SENTENCE COMES OUT IAN IS RIDING A TASTE SENSATION APPLE OBVIOUSLY IS HOPING THAT THE VIEWS EXPRESSED IN THE DOONESBURY CARTON AREN'T SHARED BY MORE TECHNOLOGYHIP CONSUMERS TO WHOM IT IS AIMING ITS ADS IN THE TELEVISION COMMERCIAL FROM THE LOS ANGELES OFFICE OF OMNICOM GROUP'S BBDO A NONONSENSE ANNOUNCER TICKS OFF WHAT NEWTON IS INTELLIGENT IT LEARNS ABOUT YOU IT UNDERSTANDS YOU IT IS NEWS SOMETIMES ODD SCENES ARE USED A WOMAN BORDERING ON HYSTERIA LIES ON A PSYCHIATRIST'S COUCH WHILE THE GOOD DOCTOR DUTIFULLY JOTS DOWN NOTES FRANTIC REPORTERS FOLLOW A BEAUTIFUL MODEL WHILE SCRIBBLING THEIR ACCOUNTS A SCRIPTED WORD CHAIR MAGICALLY BECOMES EASYTOREAD COMPUTER PRINT SOON THE ADS PROMISE NEWTON USERS WILL BE ABLE TO GET ELECTRONIC MAIL NEWTON'S CRITICS REMAIN UNIMPRESSED BY THE CAMPAIGN NEWTON WAS OVERHYPED TO BEGIN WITH SAYS ANDREW SEYBOLD PUBLISHER OF THE MONTHLY NEWSLETTERS OUTLOOK ON MOBILE COMPUTING AND OUTLOOK ON PROFESSIONAL COMPUTING THE HANDWRITING RECOGNITION ISN'T AS GOOD AS IT NEEDS TO BE ALL I'M HEARING FROM ARE DISGRUNTLED USERS NEWTON CAN DO 75 OF WHAT APPLE SAYS IT CAN DO MAINTAINS MR SEYBOLD WHICH ONLY CONTRIBUTES TO A USER'S FRUSTRATION BUT IN THE MARKETS WHERE THE MESSAGEPAD HAS BEEN AVAILABLE IN RECENT WEEKS SALES HAVE BEEN BRISK REPORT SEVERAL LEADING CHAINS COMPUTER TOWN WHICH OPERATES FIVE STORES IN NEW ENGLAND THAT SELL NEWTON SAYS IT SOLD 2000 IN THE LAST MONTH AND THE STORES AVERAGE A TOTAL OF 30 TO 40 EACH DAY SAYS THE CHAIN'S PRESIDENT THOMAS JACOBS THE DEVICE WILL BE AVAILABLE NATIONALLY STARTING THIS WEEK APPLE AND BBDO WHICH ALSO PRODUCED THE PRINT ADS PLAN TO BLANKET THE AIRWAVES AND MAGAZINES WITH DOUBLEPAGE ADS FOR NEWTON AND THE MESSAGEPAD SPOTS WILL AIR DURING THE MORNING NETWORK NEWS PROGRAMS PRIME TIME AND DURING LATE NIGHT VARIETY SHOWS AND IT BEGAN APPEARING THIS WEEK IN MAGAZINES SUCH AS NEWSWEEK SPORTS ILLUSTRATED AND PEOPLE TWO ADDITIONAL SPOTS IN THE NEXT FEW WEEKS WILL SHOW HOW PORTABLE THE COMPUTER IS AND WHO USES NEWTON BBDO AND APPLE SAY THE VAGUE SHOCKVALUE CAMPAIGN STRATEGY THAT LAUNCHED MACINTOSH WAS NEVER CONTEMPLATED FOR NEWTON WHILE THE MESSAGE OF THAT SPOT WAS TO FORGET BIG BLUE THE NICKNAME OF INTERNATIONAL BUSINESS MACHINES THE MESSAGE FOR NEWTON IS USE IT USE IT USE IT SAYS JIM WARD SENIOR VICE PRESIDENT AND APPLE'S WORLDWIDE ACCOUNT DIRECTOR AT BBDO WE WOULDN'T HAVE INTRODUCED ANOTHER CAMPAIGN LIKE 1984 HE ADDS THAT WAS A MOMENT IN TIME WE WOULD HAVE BEEN DOOMED IF WE DID IT AGAIN FOOTE CONE & BELDING COMMUNICATIONS CHICAGO IS IN TALKS TO ACQUIRE BORDERS PERRIN & NORRANDER OF PORTLAND ORE SPOKESMEN FOR THE AGENCIES SAID CONFIRMING A REPORT IN ADWEEK MAGAZINE BORDERS PERRIN BILLED ABOUT 44 MILLION LAST YEAR ACCORDING TO ADVERTISING AGE FROM CLIENTS INCLUDING RED LION HOTELS US BANCORP AND COLUMBIA SPORTSWEAR BOTH SIDES STRESSED THAT A DEAL HASN'T BEEN FINALIZED PETER HATT CHAIRMAN AND CHIEF EXECUTIVE OF BORDERS PERRIN SAID THE PROSPECTIVE DEAL PRESENTS SEVERAL POSSIBLE CLIENT CONFLICTS INCLUDING ONE BETWEEN THE SHOP'S COLUMBIA SPORTSWEAR CLIENT AND FOOTE CONE'S BIG LEVI STRAUSS & CO ACCOUNT BUT THE POTENTIAL CONFLICTS ARE GOOD INSURANCE HE SAID THEY GUARANTEE THAT WE'LL OPERATE INDEPENDENTLY FROM THE NEW PARENT TBWA ADVERTISING'S DUESSELDORF OFFICE WON NISSAN MOTOR CO'S 25 MILLION AD ACCOUNT IN GERMANY MARKING THE FIFTH EUROPEAN MARKET IN WHICH THE OMNICOM GROUP AGENCY CREATES THE AUTO MAKER'S ADS DUESSELDORF SHOP SPIESS ERMISCH ABELS HAD PREVIOUSLY HANDLED THE ACCOUNT BESTED IN THE PITCH WERE DUESSELDORF AFFILIATES OF GREY ADVERTISING AND WPP GROUP'S SCALIA MCCABE SLOVES AND THE HAMBURG AGENCY KNS TBWA SAID MADISON AVENUE HAS BEEN INTERESTED IN TBWA'S NISSAN WORK ESPECIALLY SINCE THE AGENCY'S NAME SURFACED IN CONNECTION WITH CHIAT/DAY NISSAN'S AGENCY IN THE US EXECUTIVES HAD SPECULATED EARLIER THIS YEAR THAT OMNICOM GROUP WAS INTERESTED IN ACQUIRING CHIAT AND MERGING IT WITH TBWA THOSE TALKS ARE OFF ALL BURNERS NEITHER ON THE FRONT OR THE BACK SAID FRED MEYER OMNICOM CHIEF FINANCIAL OFFICER COKE COCACOLA CO SAID IT NAMED DAVID WHELDON MANAGING DIRECTOR OF THE LONDON AGENCY LOWE HOWARDSPINK AS ITS DIRECTOR OF ADVERTISING EFFECTIVE OCT 1 MR WHELDON 37 YEARS OLD WILL REPORT TO SERGIO ZYMAN WHO WAS RECENTLY NAMED COKE'S CHIEF MARKETING OFFICER MR WHELDON WILL BE RESPONSIBLE FOR ADVERTISING FOR ALL COKE'S BEVERAGE BRANDS EXCEPT COCACOLA CLASSIC WHICH MR ZYMAN WILL PERSONALLY HANDLE MR WHELDON'S ADVERTISING AGENCY A UNIT OF INTERPUBLIC GROUP LAST YEAR PRODUCED COMMERCIALS FOR TAB CLEAR THE COLORLESS DIET DRINK ACCOUNTS CELESTIAL SEASONINGS THE BOULDER COLO HERBAL TEA MAKER TAPPED CHICAGO AGENCY TATHAM EURO RSCG FOR ITS ESTIMATED 5 MILLION ACCOUNT PREVIOUSLY AT ALLY & GARGANO NEW YORK INDUSTRY EXECUTIVES SAID CELESTIAL SEASONINGS COULDN'T BE REACHED SONY CORP CONFIRMED THAT IT HIRED SAATCHI & SAATCHI'S CLIFF FREEMAN & PARTNERS NEW YORK TO HANDLE ITS ESTIMATED 8 MILLION IMAGESOFT VIDEO GAME ACCOUNT PREVIOUSLY HANDLED BY CN COMMUNICATIONS OF RAHWAY NJ SONY PLANS A BIG TV PUSH FOR IMAGESOFT LATER THIS YEAR REVIEW SHOWBIZ PIZZA TIME INC OF IRVING TEXAS PARENT OF CHAINS SHOWBIZ PIZZA PLACE AND CHUCK E CHEESE CONFIRMED THAT ITS 14 MILLION ADVERTISING ACCOUNT IS UP FOR GRABS CONTENDING ARE JORDAN MCGRATH CASE & TAYLOR NEW YORK THE CHICAGO OFFICE OF WPP GROUP'S J WALTER THOMPSON THE LOS ANGELES OFFICE OF WPP GROUP'S OGILVY & MATHER AND TWO DALLAS AGENCIES RICHARDS GROUP AND BOZELL JACOBS KENYON & ECKHARDT'S TEMERLIN MCCLAIN A DECISION IS EXPECTED OCT 1 WHO'S NEWS WPP GROUP'S J WALTER THOMPSON NAMED CHRIS THOMPSON TO THE NEW POST OF MANAGING DIRECTOR FOR SEVERAL OF ITS BIG EUROPEAN ACCOUNTS UNILEVER NESTLE DE BEERS AND ROLEX MR THOMPSON 38 YEARS OLD HAD PREVIOUSLY BEEN EXECUTIVE VICE PRESIDENT IN CHARGE OF AGENCY OPERATIONS HE RETAINS THE EXECUTIVE VICE PRESIDENT TITLE AND TOP RESPONSIBILITY FOR THE KELLOGG CEREAL ACCOUNT A SPOKESWOMAN SAID HONDA THE PHILADELPHIA OFFICE OF EARLE PALMER BROWN WON THE NEWLY FORMED FIVE STATE HONDA AUTOMOBILE DEALERS ASSOCIATION ACCOUNT WITH ESTIMATED BILLINGS OF 14 MILLION THE ASSOCIATION WHOSE MEMBERS INCLUDE DEALERS IN CONNECTICUT NEW YORK NEW JERSEY PENNSYLVANIA AND DELAWARE AWARDED THE ACCOUNT WITHOUT A REVIEW AN AGENCY SPOKESMAN SAID 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 9309080022 930908 URBAN HARVEST IRELAND'S CITY POOR SEEK A BETTER LIFE IN DYING RURAL AREAS REVERSE EMIGRATION PROGRAM FILLS HOMES AND SCHOOLS BUT REQUIRES ADJUSTMENT DUBLINERS HEAR TALK OF SILAGE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL COUNTY MAYO IRELAND MARGARET HAYDEN WALKS BESIDE HER HUSBAND THROUGH THE TALL GRASS STUDYING HIS FACE FOR CLUES IT'S A LONG WAY OUT SHE SAYS TENTATIVELY AYE WILDERNESS LIKE THE HAYDENS WHO COME FROM DUBLIN HAVE SPENT FOUR HOURS AND MUCH OF THEIR SAVINGS ON A BUS RIDE TO THIS RURAL COUNTY THE BUS LEFT THEM A HALFDAY'S HIKE AWAY FROM THE DESERTED FARM COTTAGE THEY HAVE COME TO SEE ABOUT RENTING NOW THOMAS HAYDEN STARES AT SODS OF PEAT THE POOR IRISHMAN'S FUELPILED BESIDE THE COTTAGE RAIN DRUMS THE ROOF OF A DERELICT BARN AN UNEMPLOYED BRICKLAYER MR HAYDEN DOUBTS HE WILL FIND WORK IN THIS COUNTRY BACKWATER BUT WHAT HAS DRAWN HIM HERE IS THE LOCAL SCHOOL JUST A SHORT SAFE WALK FOR HIS TWO YOUNG GIRLS WE'RE MOVING FOR THEIR FUTURE MR HAYDEN SAYS NOT FOR OURS FOR GENERATIONS IN IRELAND POOR PARENTS HAVE DONE JUST THIS SHOVED OFF TO SEEK A BETTER LIFE FOR THEIR CHILDREN BUT NOW IRELAND'S TRADITIONAL EXODUS COMES WITH A TWIST INSPIRED BY ONE MAN'S IMAGINATION FAMILIES LIKE THE HAYDENS ARE MIGRATING NOT TO BRITAIN OR AMERICA BUT TO IRISH VILLAGES EMPTIED BY EARLIER EMIGRANTS THERE IS ANOTHER TWIST RURAL FOLK WELCOME THESE URBAN REFUGEES OFFERING THEM HOMES AT MODEST RENTS AIDAN HORKAN WHO OWNS THE COTTAGE THE HAYDENS HAVE COME TO VIEW ONCE WALKED TO SCHOOL ALONG THE SAME COUNTRY LANE THAT THE HAYDENS HOPE THEIR GIRLS WILL TRAVEL BUT SINCE MR HORKAN'S BOYHOOD IN THE 1950S FAMILIES LIKE HIS HAVE CEASED FARMING ABANDONED HOMES AND PUT THE SCHOOL AT RISK OF CLOSING BECAUSE OF FALLING ENROLLMENT WE NEED TO BREATHE LIFE BACK INTO THE COUNTRYSIDE HE SAYS OFFERING TEA AND SCONES TO THE HAYDENS AT HIS HOME IN A NEARBY TOWN RURAL DECLINE IS A PRECIPITATE EUROPEWIDE BLIGHT THE NUMBER OF FARM WORKERS IN THE 12MEMBER EUROPEAN COMMUNITY HAS BEEN HALVED SINCE 1965 DUE TO FORCES SUCH AS MECHANIZATION ALMOST HALF OF EUROPE'S FARM OWNERS ARE 55 OR OLDER AND HALF OF THEM HAVE NO ONE TO TAKE OVER WHEN THEY RETIRE AS PEOPLE DRAIN AWAY FROM THE COUNTRYSIDE SO TOO DO SHOPS AND SERVICES SPEEDING RURAL ABANDONMENT WHICH THE FRENCH APTLY CALL DESERTIFICATION THE CRISIS IS MOST ACUTE IN WESTERN IRELAND WHICH LONG HAS BEEN A SORT OF FARM TEAM FOR THE SLUMS OF DUBLIN LONDON NEW YORK AND BOSTON LOOP HEAD A TOE OF LAND BETWEEN THE ATLANTIC AND THE RIVER SHANNON 200 MILES WEST OF DUBLIN TYPIFIES THE CYCLE OF DEPARTURE AND DECLINE IN 1841 ON THE EVE OF THE POTATO FAMINE LOOP HEAD HAD 13000 PEOPLE TODAY IT HAS 1300 SEA WINDS NOW RATTLE SHUTTERED SHOPS AND HOWL THROUGH THE SKELETONS OF STONE COTTAGES WITH TURF SPROUTING ON TOP THERE'S A FATALISM ABOUT A DYING COMMUNITY THE SAME WAY THERE IS ABOUT A DYING PERSON SAYS JIM CONNOLLY A LOOP HEAD SCULPTOR PEOPLE THINK IT'S SAD BUT IT CAN'T BE HELPED' SO YOU GO TO THE FUNERAL AND GET ON WITH YOUR LIFE OVER THE YEARS WHILE CASTING BRONZE STATUES THE GRAYBEARDED SCULPTOR CRAFTED A CURIOUS FANTASY AS WELL WHY NOT FILL THIS SCENIC EMPTY LANDSCAPE WITH POOR FAMILIES FROM THE CITY TRUE THERE IS LITTLE WORK HERE BUT THERE ISN'T MUCH IN CITIES EITHER 60 OF IRELAND'S JOBLESS HAVE BEEN UNEMPLOYED FOR MORE THAN A YEAR IN FACT MR CONNOLLY REALIZED CHRONIC UNEMPLOYMENT MIGHT BE THE KEY TO HIS SCHEME PEOPLE IN A NOHOPE SITUATION CAN MOVE AND HAVE NOTHING TO LOSE HE SAYS MEANWHILE THEY CAN GIVE THEIR CHILDREN A CLEAN SAFE ENVIRONMENT AND UNCROWDED CLASSROOMS AND PERHAPS STIR SOME LATENT INITIATIVE IN THEMSELVES MR CONNOLLY SHARED HIS DREAM ON A POPULAR RADIO SHOW SOON AFTERWARD DUBLINERS BEGAN TURNING UP AT THE NEAREST BUS STOP WHERE THE SCULPTOR MET THEM IN HIS CAR AND FERRIED THEM TO VACANT COTTAGES ONE FAMILY EVEN SOLD ITS WASHING MACHINE TO MAKE THE TRIP THREE YEARS LATER MR CONNOLLY'S VISION HAS BLOOMED INTO RURAL RESETTLEMENT IRELAND LTD A NONPROFIT GROUP WITH GOVERNMENT GRANTS AND A WAITING LIST OF ALMOST 2000 FAMILIES IT'S THE ONLY PROJECT OF ITS KIND IN EUROPE SAYS BRIAN HARVEY A GOVERNMENT CONSULTANT WHO HAS STUDIED THE SCHEME AND BELIEVES IT HAS IMMENSE POTENTIAL AND NOT JUST IN IRELAND WHILE RETIREES AND MIDDLECLASS COMMUTERS HAVE BUOYED PARTS OF RURAL EUROPE THE IRISH PROGRAM TARGETS THE POOR AND ATTACKS TWO CRISES URBAN CROWDING AND RURAL DECLINE AT THE SAME TIME ALREADY FRENCH AND GREEK OFFICIALS HAVE EXPRESSED INTEREST IN MIMICKING THE SCHEME DESPITE ITS SUDDEN SUCCESS RURAL RESETTLEMENT REMAINS A SHOESTRING OUTFIT RUN FROM A TRAILER BEHIND MR CONNOLLY'S STUDIO THE SCULPTOR HAS HANDED ADMINISTRATION TO PAUL MURPHY WHOSE FAMILY WAS THE SECOND TO BE RESETTLED UNDER THE PROGRAM SCOURING THE WEST FOR HOUSES IN HIS 12YEAROLD SEDAN THE FORMER DUBLIN BUS DRIVER SAYS THESE DAYS THE WORST TRAFFIC JAM I EVER SEE IS A HERD OF COWS AT MILKING TIME HE DISPELS SUCH FEARS BY EXPLAINING THAT SETTLERS MUST HAVE REFERENCES INCLUDING ONE FROM POLICE HE ALSO IS HELPED BY THE FACT THAT IRELAND IS A HOMOGENEOUS SOCIETY WITH A LONG HISTORY OF POVERTY AND MIGRATION JOBLESS REFUGEES AREN'T STIGMATIZED AS MUCH AS THEY MIGHT BE ELSEWHERE AND NEWCOMERS BRING TANGIBLE BENEFITS AS CONSUMERS AT STRAPPED PUBS AND SHOPS AS MEMBERS OF DWINDLING CHURCHES AND CLUBS AND ABOVE ALL AS SAVIORS OF SHRINKING SCHOOLS THE PLUSES FOR ALL PARTIES ARE OBVIOUS AT THE TWOROOM SCHOOL THAT MR MURPHY'S CHILDREN NOW ATTEND IN DUBLIN THEY WERE CRAMMED INTO CLASSES OF 35 OR MORE HERE IN A GROUP OF 12 THEY GET MUCH MORE PERSONAL ATTENTION AND IF THEY AND OTHER DUBLINERS HADN'T MOVED HERE SCHOOL ENROLLMENT WOULD HAVE FALLEN BELOW THE GOVERNMENT THRESHOLD OF 26 NEEDED TO KEEP TWO TEACHERS APART FROM GIBES ABOUT DUBS SLANG FOR DUBLINERS THE CITY CHILDREN SAY THEY HAVE ADJUSTED EASILY THEY ENJOY THE FREEDOM TO ROAM AND PLAY IN SAFETY THE BIGGEST HURDLE SAYS NINEYEAROLD SUSAN MURPHY HAS BEEN MAKING SENSE OF THE ALIEN CONCERNS OF COUNTRY FOLK THERE'S A LOT OF TALK ABOUT SILAGE SHE SAYS REFERRING TO THE GRASS THAT FARMERS MOW FOR ANIMAL FEED FOR ADULTS THE MOVE ISN'T SO EASY ACCUSTOMED TO WARNING HER CHILDREN ABOUT TRAFFIC AND STRANGERS BERNADETTE MURPHY SAYS SHE HAS FOUND IT HARD TO LET THEM OUT OF HER SIGHT AT FIRST I'D BE PEERING OUT THE WINDOW WONDERING WHO ARE THEY TALKING TO' SHE SAYS NOW SITTING IN A KITCHEN CROWDED WITH BOXES OF ONIONS HOMEMADE BREAD AND MUDDY BOOTS MS MURPHY ADDS I FINALLY REALIZED THAT THERE ARE NO STRANGERS IN A PLACE LIKE THIS SHE AND OTHER HOUSEWIVES ALSO MUST COPE WITH THE ISOLATION OF LONELY COTTAGES MOST MEN MEANWHILE FIND THEMSELVES STRUGGLING WITH SUCH EXOTIC TASKS AS GROWING VEGETABLES AND CUTTING PEAT FOR THE FIRE ONE DUBLINER HAS TWICE HAD TO BE RESCUED AFTER FALLING INTO SWAMPY BOGS HE ALSO PLANTED POTATOES THEN PULLED THEM UP A MONTH LATER MISTAKING THEIR SPROUTS FOR WEEDS ANOTHER MAN PHONED RURAL RESETTLEMENT IN GREAT ALARM TO REPORT AN INTRUDER A MOUSE SOME LOCALS WONDER IF DUBS AREN'T JUST HOPELESSLY INEPT BUT HOPELESSLY ROMANTIC TOO I WAS BORN IN BROOKLYN AND I WISH TO GOD I'D BEEN LEFT THERE SAYS NORA HAUGH WHOSE PARENTS RETURNED TO LOOP HEAD WHEN SHE WAS SIX SHE NOW RUNS A BEDANDBREAKFAST THAT OFTEN IS THE FIRST STOP FOR RURAL RESETTLERS I ASK THEM WHY DO YOU WANT TO MOVE HERE THERE'S NO WORK AND EVEN LESS FUN' SHE ADDS THE FRESH AIR MAKES THEM CRAZY A VISIT TO DUBLIN HELPS EXPLAIN WHY IN CONTRAST TO THE US PLANNERS HERE HAVE RAZED INNERCITY SLUMS AND ERECTED VAST PUBLIC HOUSING ESTATES AT THE CITY'S EDGE THE UNINTENDED RESULT BLEAK SUBURBAN PROJECTS THAT ARE MORE AKIN TO THE WASTELAND OF CLOCKWORK ORANGE THAN TO THE VIBRANT DUBLIN OF ULYSSES EVEN SO WITH OVER A THIRD OF IRELAND'S 35 MILLION PEOPLE CRAMMED INTO DUBLIN THERE ARE 23000 APPLICANTS WAITING FOR SIMILAR HOUSING THE UNEMPLOYED BRICKLAYER MR HAYDEN LIVES WITH HIS FAMILY IN A PROJECT IRONICALLY NAMED CHERRY ORCHARD THE TREELESS PLOT IS FILLED WITH COOKIECUTTER HOUSES AND BORDERED BY A TIRE FACTORY AND A PRISON IN VACANT LOTS JOBLESS MEN BURN TELEPHONE CABLE TO EXTRACT THE COPPER WIRE WHICH THEY SELL FOR SCRAP ON BAD DAYS YOU CAN ALMOST EAT THE SMOG SAYS MS HAYDEN WHO BLAMES HER DAUGHTERS' ASTHMA ON THE SMOKY AIR BUSES NO LONGER REACH THE HAYDENS' STREET BECAUSE DRIVERS HAVE BEEN THREATENED WITH GUNS AND KNIVES BADLY STOCKED SHOPS ARE A 20MINUTE WALK AWAY DRUG DEALERS AND JOY RIDERS ARE A MENACE I PRAY FOR WET COLD DAYS SO THE GIRLS WON'T ASK TO PLAY OUTSIDE MS HAYDEN SAYS THE HAYDENS DECIDED TO MOVE AFTER HEARING ABOUT RURAL RESETTLEMENT ON THE RADIO MR HAYDEN A LIFELONG DUBLINER WORRIES THAT HE MIGHT NEVER WORK AT HIS TRADE AGAIN BUT HE RECKONS THAT BEING UNEMPLOYED IN THE COUNTRY IS BETTER THAN BEING JOBLESS IN DUBLIN THE COST OF LIVING IS ABOUT THE SAME AND HE CAN MOVE WITHOUT JEOPARDIZING HIS UNEMPLOYMENT AND OTHER PUBLIC BENEFITS WHICH PROVIDE A MODEST BUT LIVABLE BUDGET AT LEAST WE'LL BE AWAY FROM THE DRUGS THE RUBBISH AND THE DECAY HE SAYS HIS TWO YOUNG GIRLS SEEM TO AGREE LOADING DOLLS INTO AN IMAGINARY TRUCK SIXYEAROLD LAURA SAYS SHE IS PLAYING A GAME CALLED MOVING TO MAYO THE RURAL COUNTY WHERE THE HAYDENS MAY SETTLE NOT ALL MIGRANTS ARE JOBLESS DUBLINERS NOR ARE ALL TRAPPED IN CROWDED PROJECTS PAUL AND CLAIRE KELLY RECENTLY LEFT STEADY JOBS AND A SPACIOUS HOME IN BELFAST FOR A SMALL BUNGALOW IN A REMOTE IRISH VILLAGE IN BELFAST AS A CATHOLIC DRIVING BUSES IN A PROTESTANT AREA MR KELLY FEARED FOR HIS SAFETY THEN A CLOSE FRIEND WAS GUNNED DOWN THE DAY AFTER HIS FUNERAL THE KELLYS APPLIED TO RURAL RESETTLEMENT I WANT TO HAVE A FAMILY BUT NOT IN BELFAST MS KELLY SAYS SIPPING GUINNESS DURING AN EXTENDED GOODBYE IN A PUB THAT HAS BEEN BOMBED SEVERAL TIMES BY THE AGE OF SIX KIDS HERE ARE ALREADY BIGOTS CALLING EACH OTHER NAMES THREE WEEKS LATER SIPPING TEA IN A COTTAGE IN RURAL COUNTY CLARE THE COUPLE STILL SEEM STUNNED BY THE CALM THE LOCAL NEWSPAPER HAS HEADLINES ABOUT THE RAIN AND THE PRICE OF CATTLE QUITE A CHANGE MR KELLY SAYS FROM READING ABOUT WHO SHOT WHO LAST NIGHT HE ALSO DOESN'T MISS THE CONSTANT DRONE OF ARMY HELICOPTERS AND WHILE HE MAY HAVE A LONG WAIT FOR A BUS DRIVER'S JOB HE AND HIS WIFE HAVE FOUND PARTTIME WORK HERDING COWS OTHER SETTLERS HAVE FOUND NEW CAREERS TEACHING MUSIC AND DOING CRAFTWORK BUT MOST SUBSIST ON THE DOLE AS THEY DID IN THE CITY FOR MR CONNOLLY THE SCULPTORCUMSOCIOLOGIST EXPANDING JOB OPPORTUNITIES IS RURAL RESETTLEMENT'S NEXT FRONTIER OTHERWISE HISTORY WILL REPEAT ITSELF WITH SETTLERS' CHILDREN SEEKING EMPLOYMENT IN DUBLIN OR ACROSS THE WATER CURRENTLY ONE OF EVERY EIGHT IRISH NATIVES LIVES ABROAD LARGELY IN BRITAIN AND AMERICA RURAL RESETTLEMENT HAS LAUNCHED CLASSES IN DUBLIN FOR PROSPECTIVE MIGRANTS TEACHING SKILLS SUCH AS LEATHER WORK WITH OTHER GROUPS IT ALSO HAS SUCCESSFULLY LOBBIED THE STATE TO LOOSEN RULES THAT LIMIT WHAT UNEMPLOYED PEOPLE CAN EARN WITHOUT LOSING THEIR BENEFITS WE SHOULD TOLERATE A GRAY ECONOMY IN WHICH PEOPLE TOP UP THEIR BENEFITS WITH THEIR OWN ENTERPRISE MR CONNOLLY SAYS IF PEOPLE CAN DO SO HE BELIEVES A VAST POTENTIAL MIGHT BE TAPPED JUST BY MOVING WEST PEOPLE ACQUIRE THE SPACE IN BARNS SHEDS AND GARDENS TO LAUNCH A NEW VENTURE SUCH AS A CRAFTS WORKSHOP SELLING TOOLED LEATHER GOODS PSYCHOLOGICALLY HE ADDS THE ACT OF MOVING HELPS PEOPLE STRIKE OUT IN A NEW DIRECTION IT'S LIKE JOINING A WAGON TRAIN HE SAYS BY TAKING A BRAVE STEP YOU BOOST YOUR SPIRITS AND YOUR SENSE OF ENTERPRISE THIS IS CERTAINLY TRUE OF HIS SUCCESSOR MR MURPHY WHILE TAKING CHARGE OF RURAL RESETTLEMENT THE FORMER BUS DRIVER ALSO HAS JOINED THE LOCAL SCHOOL BOARD WRITTEN SCRIPTS FOR A LOCAL DRAMA GROUP AND PUBLISHED A BOOK ON LOOP HEAD MOVING WEST SAYS THE 36YEAROLD WAS A CATALYST TO DO THINGS I'D ONLY DREAMED OF THERE IS ONE MORE FANTASY HE HOPES TO REALIZE HE HAS RECENTLY SENT LITERARY AGENTS A MEMOIR ABOUT MIGRATING FROM DUBLIN TO LOOP HEAD HE LIKENS IT TO PETER MAYLE'S BESTSELLER ABOUT MOVING TO RURAL FRANCE IT'S JUST LIKE A YEAR IN PROVENCE' HE SAYS AS RAIN LASHES AGAINST HIS TRAILER/OFFICE EXCEPT THAT IT'S FROM A DUBLIN WORKINGCLASS PERSPECTIVE AND WITHOUT THE MEALS AND ALL THAT 9309080021 930908 BUSINESS BRIEF UST CORP SMOKELESS TOBACCO PRICES RAISED 32 BY COMPANY BRUSHING OFF THE THREAT OF CHEAPER PRIVATELABEL SNUFF UST INC RAISED THE PRICE OF ITS SMOKELESS TOBACCO PRODUCTS 32 THE INCREASES INCLUDE THE GREENWICH CONN COMPANY'S BESTSELLING SKOAL AND COPENHAGEN PRODUCTS PRIVATELABEL SNUFF ACCOUNTS FOR LESS THAN 1 OF THE SNUFF MARKET BUT INVESTORS HAVE BECOME CONCERNED RECENTLY OVER THE GROWING THREAT TO UST FROM CHEAP SNUFF GIVEN THE GROWING INTEREST IN CHEAP SNUFF OPPENHEIMER & CO ANALYST DAVID A GOLDMAN SAID HE WAS SURPRISED THAT UST RAISED ITS PRICES THE QUESTION IS WILL THE INCREASES STICK HE SAID UST EASED 125 CENTS TO 2675 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309080020 930908 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 AETNA LIFE & CASUALTY CO 200 MILLION OF DEBENTURES DUE SEPT 15 2013 PRICED AS 675S AT 99901 TO YIELD 6759 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE SEPT 14 1998 PRICED AT PAR TO YIELD 477 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF FIVEYEAR CALLABLE DEBENTURES DUE SEPT 10 1998 TO YIELD 4725 PRICED AT 99890625 WITH A 47 COUPON THE DEBENTURES ARE CALLABLE ON OR AFTER SEPT 10 1996 WITH THE FIRST INTEREST PAYMENT SCHEDULED FOR MARCH 10 1994 A MINIMUM PURCHASE OF 10000 IS REQUIRED SEAGRAM CO 200 MILLION OF DEBENTURES DUE SEPT 1 2023 PRICED AT PAR TO YIELD 6875 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 78 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AKZO NV NETHERLANDS 300 MILLION DUTCH GUILDERS OF 6375 EUROBONDS DUE OCT 15 2003 AT ISSUE PRICE 1001 VIA ABN AMRO BANK NV REOFFERED AT 9945 TO YIELD 645 A SPREAD OF 46 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE POINT BELGIUM SOVEREIGN ONE BILLION MARKS OF 625 EUROBONDS DUE OCT 6 2003 AT ISSUE PRICE 101805 VIA MORGAN STANLEY GMBH REOFFERED AT 9963 TO YIELD 614 A SPREAD OF 16 BASIS POINTS OVER GERMAN BUND DUE JULY 2003 FEES 25 POINTS EBARA CORP JAPAN 10 BILLION YEN OF 45 EUROBONDS DUE DEC 29 2000 AT ISSUE PRICE 101775 VIA DKB INTERNATIONAL PLC REOFFERED AT 1002 TO YIELD 446 FEES 1875 POINTS EUROFIMA SUPRANATIONAL 400 MILLION DUTCH GUILDERS OF 6125 EUROBONDS DUE OCT 1 2003 AT ISSUE PRICE 10085 VIA RABOBANK NEDERLAND REOFFERED AT 1001 TO YIELD 6111 A SPREAD OF 12 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE POINT EUROPEAN INVESTMENT BANK SUPRANATIONAL 40 BILLION SPANISH PESETAS OF 83 MATADOR BONDS DUE SEPT 30 1996 AT ISSUE PRICE 10131 VIA BANCO CENTRAL HISPANOAMERICANO SA BONDS YIELD 8301 AT 99998 COMANAGER'S BREAKEVEN PRICE A SPREAD OF 22 BASIS POINTS BELOW COMPARABLE SPANISH GOVERNMENT BOND FEES 1375 POINTS LESS 00625 POINT FOR LEAD MANAGER HALIFAX BUILDING SOCIETY UK 100 MILLION OF 875 PERMANENT INTERESTBEARING SHARES AT ISSUE PRICE 100615 VIA SG WARBURG SECURITIES LTD REOFFERED AT 9999 TO YIELD A MARGIN OF 150 BASIS POINTS OVER 875 GILT DUE 2017 BONDS CALLABLE AT HIGHER OF LEVEL YIELDS WITH GILTS ON PAR UNTIL SEPT 14 2023 THEREAFTER BONDS CALLABLE AT PAR FEES 1375 POINTS HANKYU CORP JAPAN 25 BILLION YEN OF 125 CONVERTIBLE EUROBONDS DUE SEPT 30 1998 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY FROM OCT 8 TO SEPT 16 1998 AT TERMS TO BE FIXED SEPT 13 INDICATED PREMIUM 25 FEES 25 POINTS LESS 035 POINT FOR LEAD MANAGER INTEREST PAYABLE SEMIANNUALLY HANKYU CORP JAPAN 10 BILLION YEN OF 475 EUROBONDS DUE JAN 7 2002 AT ISSUE PRICE 101575 VIA DAIWA EUROPE LTD REOFFERED AT 100075 TO YIELD 4735 FEES TWO POINTS HANKYU CORP JAPAN 10 BILLION YEN OF 49 EUROBONDS DUE JAN 7 2004 AT ISSUE PRICE 101575 VIA SANWA INTERNATIONAL PLC REOFFERED AT 9995 TO YIELD 4903 FEES TWO POINTS KAWASUMI LABORATORIES INC JAPAN 65 MILLION MARKS OF 1625 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE SEPT 30 1997 AT ISSUE PRICE PAR VIA NOMURA BANK DEUTSCHLAND GMBH GUARANTOR SAKURA BANK LTD WARRANTS TO PURCHASE ORDINARY SHARES OF COMPANY FROM OCT 14 TO SEPT 16 1997 AT TERMS TO BE FIXED SEPT 13 AT INDICATED PREMIUM 25 YESTERDAY'S CLOSING SHARE PRICE 2520 YEN FEES 265 POINTS LESS 0185 POINT FOR LEAD MANAGER KOKUNE CORP JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0125 NOTES DUE SEPT 30 1997 AT PAR VIA YAMAICHI BANK SWITZERLAND BONDS CONVERTIBLE FROM OCT 4 TO SEPT 24 1997 AT 25 PREMIUM OVER CLOSING SHARE PRICE THURSDAY WHEN TERMS FIXED FEES 1625 POINTS NAGAWA CO JAPAN 80 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 0125 NOTES DUE SEPT 30 1997 AT PAR VIA NOMURA BANK SWITZERLAND BONDS CONVERTIBLE FROM OCT 14 TO SEPT 17 1997 AT 25 PREMIUM OVER CLOSING SHARE PRICE MONDAY WHEN TERMS FIXED FEES 1525 POINTS OKAMURA CORP JAPAN 100 MILLION OF 4875 EUROBONDS DUE SEPT 22 1997 AT ISSUE AND REOFFER PRICE PAR VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 4875 A MARGIN OF 47 BASIS POINTS OVER FOURYEAR US TREASURY CURVE GUARANTOR MITSUBISHI BANK LTD FEES 025 POINT PACIFIC CONSTRUCTION CO TAIWAN 60 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 2125 NOTES DUE OCT 1 1998 AT PAR VIA SWISS BANK CORP BONDS CONVERTIBLE FROM OCT 11 TO SEPT 11 1998 AT EXPECTED 10 PREMIUM OVER CLOSING SHARE PRICE THURSDAY WHEN TERMS FIXED FEES 1625 POINTS SAPIENS INTERNATIONAL CORP US OFFSHORE 40 MILLION OF SUBORDINATED CONVERTIBLE EUROBONDS DUE SEPT 20 2003 AT ISSUE AND REOFFER PRICE PAR VIA SWISS BANK CORP INDICATED COUPON 5 TO 55 BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM 18 TO 22 FROM NOV 1 TO SEPT 20 2003 TERMS FIXED ON OR BEFORE FRIDAY BONDS CALLABLE FOR TWO YEARS FROM SEPT 20 1996 AT 103 DECLINING BY ONE POINT ANNUALLY UNTIL PRICE REACHES PAR ON SEPT 20 1998 SUBJECT TO PREVAILING SHARE PRICE BEING AT LEAST 130 OF CONVERSION PRICE FEES 25 POINTS LESS 025 POINT FOR LEAD MANAGER INTEREST PAYABLE SEMIANNUALLY SWEDISH NATIONAL HOUSING & FINANCE CORP SWEDEN 150 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE JAN 23 1997 PRICED AT 102125 VIA CREDIT SUISSE FEES 125 POINTS TELEFONICA DE ARGENTINA SA ARGENTINA 300 MILLION 8375 EUROBONDS DUE OCT 1 2000 AT ISSUE AND REOFFER PRICE 9961 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 845 A MARGIN OF 348 BASIS POINTS OVER 875 US TREASURY DUE AUGUST 2000 FEES ONE POINT INTEREST PAYABLE SEMIANNUALLY 9309080019 930908 BOEING MAY AID JAPAN SUPPLIERS IN BUILDING JET JOINT DEVELOPMENT TALKS IRK UNIONS OPPONENTS OF TECHNOLOGY TRANSFER BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO MAY HELP ITS JAPANESE SUPPLIERS BUILD A SMALL AIRLINER OF THEIR OWN IN A MOVE BEING WATCHED WARILY BY SOME US TECHNOLOGY EXPERTS AND UNION LEADERS THE SEATTLEBASED AIRCRAFT MAKER IS IN THE EARLY STAGES OF TALKS WITH MITSUBISHI HEAVY INDUSTRIES LTD KAWASAKI HEAVY INDUSTRIES LTD AND FUJI HEAVY INDUSTRIES LTD THAT COULD ALLOW BOEING TO ASSIST IN THEIR DEVELOPMENT OF AN 80SEAT JETLINER DUBBED THE YSX LAWRENCE CLARKSON BOEING'S VICE PRESIDENT OF PLANNING AND INTERNATIONAL DEVELOPMENT SAID IN AN INTERVIEW THAT THERE HAVE BEEN A NUMBER OF DISCUSSIONS AMONG THE COMPANIES ON COOPERATIVE PRODUCTION AND DEVELOPMENT OF THE YSX HOWEVER HE SAID NO SPECIFIC PROPOSALS HAVE CHANGED HANDS YET IN THE TALKS WHICH ALSO HAVE BEEN REPORTED IN THE JAPANESE PRESS BOEING DABBLED IN THE HIGHLY COMPETITIVE MARKET FOR SMALLER REGIONAL PLANES FOR ABOUT SIX YEARS BUT GOT OUT OF THE BUSINESS WHEN IT SOLD ITS FORMER DEHAVILLAND OF CANADA UNIT IN 1992 NOW IT BUILDS ONLY JETLINERS WITH 100 OR MORE SEATS AND ITS BESTSELLING SMALL JETS CARRY 120 TO 150 PASSENGERS TEAMING WITH THE JAPANESE ON THE YSX WOULD SAVE BOEING MOST OF THE COST AND THE HEADACHES OF DEVELOPING SUCH A PLANE ITSELF JOINING WITH JAPAN ON THE YSX ALSO WOULD CURRY FAVOR WITH THE THREE JAPANESE COMPANIES WHICH HAVE BECOME INCREASINGLY IMPORTANT SUPPLIERS TO BOEING THEY BUILD MUCH OF THE FUSELAGE FOR BOEING'S BIGGER 767 AND 777 WIDEBODY JETS AND THEIR ROLE AS SUBCONTRACTORS ALSO HELPS ENSURE THAT GIANT JAPANESE CARRIERS CONTINUE TO FAVOR BOEING PRODUCTS THE NEW YSX REGIONAL JET IS ENVISIONED AS A SUCCESSOR TO JAPAN'S FIRST SMALL COMMUTER PLANE THE YS11 WHICH ENDED PRODUCTION IN 1974 AFTER 182 PLANES WERE MADE MR CLARKSON CONFIRMED THAT THE JAPANESE COMPANIES ARE IN THE SECOND PHASE OF YSX STUDIES IN WHICH THEY SELECT ANY PARTNERS FOR THE PROJECT AND ASSESS THE PLANE'S FEASIBILITY HE SAID THAT IT IS UNLIKELY YSX JETS WOULD BE DELIVERED BEFORE 1998 ALTHOUGH JAPANESE MEDIA REPORTS HAVE PROJECTED EARLIER INITIAL DELIVERIES WITH BOEING'S HELP THE NEW JAPANESE AIRPLANE COULD BE EQUIPPED WITH AN ADVANCED COCKPIT AND AVIONICS ALONG WITH FEATURES THE SEATTLE JET MAKER PLANS TO PUT ON ITS OWN UPGRADED LINE OF SMALLER 737 JETLINERS WHICH IT CALLS THE 737X HAVING COMMON FEATURES IN THE BOEING AND JAPANESE JETS WILL HELP AIRLINES HOLD DOWN MAINTENANCE AND TRAINING COSTS ENCOURAGING CARRIERS THAT PURCHASE THE JAPANESE PLANE TO BUY BOEING JETS SIMILAR BENEFITS ALSO WOULD ACCRUE TO THE MAKERS OF THE YSX BUT THE TALKS WHILE PRELIMINARY ARE ALREADY DRAWING FIRE FROM US TECHNOLOGYTRANSFER EXPERTS WHO BELIEVE TOO MUCH AIRCRAFTBUILDING EXPERTISE IS BEING HANDED OVER TO THE JAPANESE THIS IS CRAZY SAID MICHAEL SEKORA OF TECHNOLOGY STRATEGIC PLANNING INC OF STUART FLA WHICH SELLS STRATEGIES TO US COMPANIES THAT NEED TO PROTECT OR ACQUIRE TECHNOLOGIES LIKE OTHER CRITICS OF BOEING'S HANDLING OF ITS JAPANESE PARTNERS HE SUGGESTS THE US JETMAKER IS GIVING ITS JAPANESE SUPPLIERS SO MUCH INFORMATION AND EXPERIENCE THAT THEY EVENTUALLY COULD OVERTAKE THE USDOMINATED INDUSTRY BOEING HAS HEARD SUCH CRITICISM BEFORE NOTABLY IN THE 1980S WHEN IT CONTEMPLATED BUILDING AN INNOVATIVE 7J7 150SEAT AIRLINER WITH THE JAPANESE BUT BOEING INSISTS IT IS MANAGING JAPANESE INTERESTS WISELY AND DENIES IT IS FUELING A FUTURE RIVAL IN JAPAN UNION LEADERS AT BOEING ALSO ARE WORRIED AS THEY WATCH THOUSANDS OF JOBS BEING CUT AMID A GLOBAL AIRLINE RECESSION AND HARD TIMES FOR THE MANUFACTURER PARTICULARLY IN TODAY'S ENVIRONMENT THIS OBVIOUSLY IS A CONCERN SAID CHARLES BOFFERDING EXECUTIVE DIRECTOR OF THE SEATTLE ENGINEERING EMPLOYEES ASSOCIATION UNION WHICH REPRESENTS 27000 BOEING ENGINEERS AND TECHNICAL WORKERS HE SAID THE UNION WANTS TO STUDY THE TALKS CAREFULLY AND MAKE SURE THAT IN THE LONG TERM WE'RE NOT DOING SOMETHING THAT WOULD HURT OURSELVES SOME BOEING EMPLOYEES SAY PRIVATELY THAT THEY BELIEVE THE COMPANY IS STUDYING JOINT DEVELOPMENT OF AIRCRAFT WITH FOREIGN PRODUCERS MERELY AS A MEANS OF SLOWING THE PROGRESS OF COMPETING PLANES OR TO LEARN AS MUCH AS POSSIBLE ABOUT THE PROJECTS OF POTENTIAL OVERSEAS RIVALS COMPANY OFFICIALS HOWEVER DENY THAT THEY PRACTICE SUCH PLOYS IN A SEPARATE ENDEAVOR BOEING AND EUROPEAN JET MAKERS ARE ENGAGED IN A YEARLONG STUDY OF THE FEASIBILITY OF BUILDING A JUMBO JETLINER THAT COULD CARRY 550 TO 800 PASSENGERS REPORTS IN THE JAPANESE MEDIA HAVE SAID THAT EUROPEAN AEROSPACE COMPANIES ALSO HAVE BEEN CONSIDERED AS POTENTIAL YSX PARTNERS BUT THAT BOEING ASKED TO BE INVOLVED AND IS LIKELY TO BE ACCEPTED BY THE JAPANESE COMPANIES HOWEVER ONE PERSON FAMILIAR WITH THE TALKS BETWEEN BOEING AND THE JAPANESE SAID THAT THE JAPANESE COMPANIES HAVE BEEN LOOKING FOR PARTNERS ON THE PROJECT AND APPROACHED SENIOR BOEING EXECUTIVES WITH THEIR PLANS 9309080018 930908 WHO'S NEWS COVENTRY'S WILLIAMS QUITS CHAIRMANSHIP TRAUGER SUCCEEDS HIM NASHVILLE TENN COVENTRY CORP SAID ITS CHAIRMAN AND COFOUNDER JOSEPH P WILLIAMS RESIGNED AND THE COMPANY NAMED BYRON R TRAUGER AN OUTSIDE DIRECTOR TO SUCCEED HIM PHILIP HERTIK REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COVENTRY WHICH OPERATES HEALTH MAINTENANCE ORGANIZATIONS HE ASSUMED THE CEO TITLE FROM MR WILLIAMS IN LATE 1991 ANALYSTS SAID THEY WEREN'T SURPRISED BY THE DEPARTURE OF THE 42YEAROLD MR WILLIAMS WHO HASN'T BEEN INVOLVED IN COVENTRY'S DAYTODAY OPERATIONS FOR MORE THAN A YEAR MR WILLIAMS WHO HAS LIVED IN MONTGOMERY ALA SINCE LAST YEAR SAID HE WANTED TO PURSUE OTHER INTERESTS HE SAID HE WAS SATISFIED WITH COVENTRY'S CURRENT MANAGEMENT ADDING IT WAS A GOOD TIME TO STEP DOWN MR TRAUGER WHO IS A SENIOR PARTNER IN THE NASHVILLE TENN LAW FIRM OF DORAMUS & TRAUGER HAS SERVED AS A COVENTRY DIRECTOR SINCE 1989 MR TRAUGER 44 IS A FORMER CHAIRMAN OF COVENTRY'S AUDIT AND FINANCE COMMITTEE AND CURRENTLY HEADS THE COMPENSATION AND BENEFITS COMMITTEE THE COMPANY HAS REPORTED STRONG RESULTS OF LATE IN THE SECOND QUARTER COVENTRY'S PROFIT ROSE 48 TO 5 MILLION OR 39 CENTS A SHARE WHILE REVENUE INCREASED 36 TO 1418 MILLION COVENTRY STOCK FELL 625 CENTS OR 2 TO CLOSE AT 31375 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9309080017 930908 BUSINESS BRIEF MARVEL ENTERTAINMENT GROUP INC FUND GETS SETTLEMENT IN SUIT OVER FLEER ACQUISITION PRICE TO SETTLE A SUIT ALLEGING IT UNDERPAID TO ACQUIRE FLEER CORP MARVEL ENTERTAINMENT GROUP INC NEW YORK HAS PAID A STATE PENSION FUND 23 MORE PER SHARE THAN IT PAID OTHER STOCKHOLDERS THE WISCONSIN FUND WHICH FILED THE SUIT IN A DELAWARE STATE COURT ARGUED FLEER WAS WORTH 3450 TO 5194 A SHARE THE FUND OWNED ABOUT 925000 FLEER SHARES OR 98 MAKING IT THE TRADING CARD MANUFACTURER'S LARGEST STOCKHOLDER MARVEL OFFICIALS COULDN'T BE REACHED FOR COMMENT 9309080016 930908 BUSINESS BRIEF GLEASON CORP GROUP LED BY BASS FAMILY INCREASES ITS STAKE TO 99 A GROUP CONTROLLED BY INVESTORS SID AND LEE BASS OF FORT WORTH TEXAS RAISED ITS STAKE IN GLEASON CORP TO 99 AND SAID IT HAS DISCUSSED WITH MANAGEMENT WAYS TO MAXIMIZE LONGTERM SHAREHOLDER VALUE IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY AIRLIE GROUP SAID IT PURCHASED 222500 OF GLEASON'S COMMON SHARES BETWEEN AUG 11 AND SEPT 1 AT PRICES RANGING FROM 1206 TO 1281 THE BASS GROUP NOW HOLDS 510400 SHARES GLEASON A MAKER OF GEAR PRODUCTION EQUIPMENT AND MACHINE TOOLS SAID THE BASS GROUP IS ITS THIRDLARGEST SHAREHOLDER VICE PRESIDENT JACK KODWEIS SAID A MEETING WITH REPRESENTATIVES OF THE BASS FAMILY AT THE COMPANY'S ROCHESTER NY HEADQUARTERS WAS CORDIAL MR KODWEIS SAID THE BASS GROUP HAS BEEN INTERESTED IN GLEASON'S PLANT AND EQUIPMENT INVESTMENTS AND RECENT REORGANIZATION A BASS SPOKESMAN COULD NOT BE REACHED FOR COMMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY GLEASON SHARES GAINED 75 CENTS OR 63 TO CLOSE AT 1275 9309080015 930908 BUSINESS BRIEFS MCI COMMUNICATIONS CORP SAID BROKERAGE FIRM QUICK & REILLY GROUP INC WILL USE MCI TO PROVIDE TOLLFREE 800 SERVICE TO CUSTOMERS UNDER A THREEYEAR AGREEMENT CINCINNATI MILACRON INC SOLD TWO UNITS IN THE UNITED KINGDOM FOR 5 MILLION TO TRANSFER TECHNOLOGY GROUP PLC OF BIRMINGHAM ENGLAND THE SALE OF THE TWO SUBSIDIARIES LK LIMITED AND LK TOOL USA WHICH MAKE PRECISION MEASURING EQUIPMENT WILL NOT HAVE A MATERIAL EFFECT ON THE COMPANY'S FINANCIAL RESULTS FOR 1993 ENERGY CONVERSION DEVICES INC RECEIVED A THREEYEAR COSTSHARING CONTRACT VALUED AT ABOUT 92 MILLION BY THE US DEPARTMENT OF ENERGY TO DEVELOP AND DEMONSTRATE SOLAR PHOTOVOLTAIC SYSTEMS TO BE USED IN ROOFTOP CONSTRUCTION DETREX CORP SOLD ITS DETREX INDUSTRIAL CHEMICALS SPECIALTY DIVISION TO NOVAMAX FOR 10 MILLION IN CASH PLUS AN ADDITIONAL SUM TO BE PAID IN JUNE 1994 BANK OF NEW YORK CO COMPLETED CONVERSION OF NATIONAL COMMUNITY BANK INTO ITS BANKING SYSTEM THE 4 BILLION NEW JERSEY BANK IS NOW THE NATIONAL COMMUNITY DIVISION OF BANK OF NEW YORK THE ACQUISITION BOOSTED BANK OF NEW YORK'S ASSETS TO 45 BILLION TOPS APPLIANCE CITY INC OPENED ITS SIXTH CONSUMER ELECTRONICS AND APPLIANCE MEGASTORE IN WESTBURY NY THE COMPANY'S ENTRY INTO THE LONG ISLAND MARKET 9309080014 930908 BAXTER CUTS MANAGERS' PAY AND FREEZES OTHER WAGES ON PROJECTED PROFIT DECLINE BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL BAXTER INTERNATIONAL INC SAID IT WILL FREEZE EMPLOYEE SALARIES AND CUT SENIOR MANAGERS' PAY AS MUCH AS 25 BECAUSE THIRDQUARTER EARNINGS ARE EXPECTED TO TRAIL THE YEAR EARLIER'S THE REVERSAL OF FORTUNE FOR THE DEERFIELD ILL HOSPITALSUPPLY AND HEALTHCARE CONCERN WHICH LED THE CHAIRMAN TO TAKE DIRECT CONTROL OF THE COMPANY'S CORE HOSPITAL SUPPLY DIVISION YESTERDAY AND TO ANNOUNCE A REEXAMINATION OF ITS PORTFOLIO OF BUSINESSES ARISES BOTH FROM INDUSTRY TRENDS AND FROM DIFFICULTIES UNIQUE TO BAXTER THE COMPANY IN PART IS A VICTIM OF CUTS IN HEALTH EXPENDITURES NATIONWIDE BUT THE GLOOMY FORECAST ALSO REFLECTS LOSSES OF US GOVERNMENT AND PRIVATE HOSPITAL BUSINESS THAT BAXTER INCURRED BECAUSE OF ITS GUILTY PLEA EARLIER THIS YEAR TO A FEDERAL FELONY RELATED TO THE ARAB ECONOMIC BOYCOTT OF ISRAEL IN A CONFERENCE CALL WITH ANALYSTS LAST NIGHT VERNON R LOUCKS JR BAXTER'S CHAIRMAN SAID OF EARNINGS EXPECTATIONS I DON'T KNOW HOW FAR DOWN IS DOWN AT THIS TIME YESTERDAY'S ANNOUNCEMENT MARKED THE SECOND CONSECUTIVE QUARTER IN WHICH BAXTER FOLLOWING YEARS OF RELATIVE SUCCESS PRESENTED ANALYSTS WITH GLOOMY PROJECTIONS DURING THE PERIOD THE COMPANY ALSO SAID IT WILL TAKE A THIRDQUARTER 13 MILLION CHARGE TO RESTRUCTURE ITS DIAGNOSTIC DIVISION AND THAT IT WILL ELIMINATE 350 JOBS THE COMPANY EMPLOYS ABOUT 60000 PEOPLE WORLDWIDE BAXTER EXECUTIVES SAID THAT WITH THAT CHARGE THIRDQUARTER EARNINGS WILL FALL SHORT OF LAST YEAR'S 148 MILLION OR 53 CENTS A SHARE ANALYSTS HAD BEEN PROJECTING EARNINGS OF 57 CENTS TO 61 CENTS A SHARE FOR THE PERIOD BAXTER ALSO SAID THAT LESTER B KNIGHT EXECUTIVE VICE PRESIDENT OF ITS CORE HOSPITALSUPPLY DIVISION WILL NO LONGER REPORT TO JAMES R TOBIN PRESIDENT AND NOW WILL ANSWER DIRECTLY TO MR LOUCKS THE COMPANY SAID THE MOVE WOULD GIVE MR TOBIN MORE RESPONSIBILITY FOR INTERNATIONAL BUSINESS AND MR LOUCKS MORE DIRECT CONTROL OVER THE CRUCIAL HOSPITALSUPPLY BUSINESS WHICH MAKES UP 4 BILLION OF BAXTER'S 9 BILLION IN ANNUAL REVENUE AND HAS BEEN BESET BY LOW PROFIT MARGINS IN RECENT MONTHS HOWEVER THE MOVE WAS GREETED WITH SOME SKEPTICISM ON WALL STREET DANIEL LEMAITRE AN ANALYST WITH COWEN & CO SAID TOBIN WAS VIEWED AS THE GUY WITH THE WHEREWITHAL TO RUN THAT BUSINESS THIS IS NOT GOING TO PLAY WELL WITH THE INVESTMENT COMMUNITY MR KNIGHT SAID BAXTER'S HOSPITALSUPPLY UNIT IS GETTING A SMALLER SHARE OF THE BURGEONING ALTERNATE SITE HEALTHCARE BUSINESS SUCH AS AT DOCTORS' OFFICES AND NURSING HOMES THAN IT HAS AT HOSPITALS ALSO WHILE BAXTER HAS INCREASED SALES THAT GROWTH HAS COME LARGELY THROUGH THE SALE OF OTHER COMPANIES' PRODUCTS SUCH AS SUTURES AND SYRINGES RATHER THAN PRODUCTS BAXTER MAKES RESULTING IN A LOWER PROFIT MARGIN THUS MR LOUCKS SAID OUR OUTLOOK FOR 1993 IS NOT WHAT WE WOULD LIKE IT TO BE HE SAID HE WILL TAKE A 25 PAY CUT EFFECTIVE IMMEDIATELY AND THAT OTHER SENIOR MANAGERS WILL TAKE 20 SALARY REDUCTIONS BAXTER ALSO WILL FREEZE EMPLOYEE SALARIES IN THE US AND PUERTO RICO AND RESTRICT DISCRETIONARY TRAVEL THE NEWS CAME AFTER THE CLOSE OF TRADING IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BAXTER STOCK WAS QUOTED AT 26375 DOWN 375 CENTS LEGAL SITUATION DIFFICULT BAXTER'S LEGAL SITUATION HAS COMPOUNDED ITS PROBLEMS AFTER PLEADING GUILTY TO VIOLATING THE US ANTIBOYCOTT LAW BAXTER LOST A BIG CHUNK OF BUSINESS WITH THE PREMIER HOSPITALS ALLIANCE A GROUP OF LARGELY JEWISHRUN MEDICAL CENTERS THAT HAD A 250 MILLIONAYEAR ANNUAL CONTRACT WITH BAXTER NOW SOME OF THAT BUSINESS GOES TO A COMPETITOR OWENS & MINOR INC ALSO THE US DEPARTMENT OF VETERANS AFFAIRS SUSPENDED BAXTER FROM BUSINESS WITH THE GOVERNMENT BAXTER HAD BEEN DOING ABOUT 130 MILLION IN ANNUAL BUSINESS WITH US AGENCIES BAXTER ALSO SAID IT IS MOVING CLOSER TO A GLOBAL SETTLEMENT OF BREASTIMPLANT LITIGATION SUCH A SETTLEMENT BAXTER SAID COULD HAVE A MATERIAL ADVERSE EFFECT ON NET INCOME IN THE PERIOD IN WHICH IT IS RECORDED WHILE BAXTER DIDN'T MANUFACTURE THE DEVICES IT MERGED WITH AMERICAN HOSPITAL SUPPLY CORP IN 1986 AND AMERICAN DID ONCE OWN A UNIT THAT MADE THEM THOUSANDS OF LAWSUITS HAVE BEEN FILED AGAINST BAXTER AND OTHER MAJOR MANUFACTURERS CONTENDING IMPLANTS CONTAINING SILICONE GEL CAUSE AUTOIMMUNE SYSTEM ILLNESSES BAXTER SAID OTHER COMPANIES MAY WELL REACH A SETTLEMENT TOO IN ADDITION BAXTER SAID IT IS EVALUATING POSSIBLE STRATEGIC MOVES INCLUDING PURCHASES OF NEW UNITS AND SALES OF EXISTING ONES MR LEMAITRE SPECULATED THAT BAXTER MAY BE DECIDING FOR INSTANCE WHETHER THEY HAVE THE WHEREWITHAL TO HOLD ON TO ITS EDWARDS DIVISION WHICH MAKES CATHETERS AND OTHER CARDIOLOGY PRODUCTS MR LOUCKS SAID THE COMPANY IS NOT VERY FAR ALONG WE ARE REEXAMINING THE ENTIRETY OF WHAT WE DO 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 9309080012 930908 WHO'S NEWS OLYMPIA UNIT NAMES SHINN AS CHAIRMAN ZUCCOTTI TO TWO POSTS NEW YORK OLYMPIA & YORK COS USA NAMED RICHARD SHINN AS CHAIRMAN AND REAPPOINTED JOHN ZUCCOTTI AS PRESIDENT AND CHIEF EXECUTIVE OFFICER O&Y USA IS A SUBSIDIARY OF OLYMPIA & YORK DEVELOPMENTS LTD THE APPOINTMENTS FOLLOW THE SELECTION IN JULY OF A NINEMEMBER BOARD TO LEAD THE REALESTATE UNIT AS IT NEGOTIATES WITH CREDITORS TO RESTRUCTURE 53 BILLION OF DEBT O&Y USA'S PREVIOUS CHAIRMAN WAS PAUL REICHMANN WHO ALONG WITH HIS BROTHERS CEDED CONTROL OF THE O&Y DEVELOPMENTS EMPIRE WHEN IT EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION IN MAY MR SHINN 75 YEARS OLD IS A FORMER CHAIRMAN OF METROPOLITAN LIFE INSURANCE CO WITH OUR INITIAL BOARD MEETINGS NOW BEHIND US WE ARE WELLPOSITIONED TO MAKE FURTHER SUBSTANTIAL PROGRESS TOWARDS RESTRUCTURING THE COMPANY'S OBLIGATIONS MR SHINN SAID IN A STATEMENT MR ZUCCOTTI 56 SAID I'M LOOKING FORWARD TO WORKING WITH THE BOARD TO ENSURE THAT THE COMPANY CONTINUES TO OPERATE EFFICIENTLY DAY TO DAY AND THAT THE RESTRUCTURING PROCESS IS CONCLUDED IN A TIMELY FASHION 9309080011 930908 WHO'S NEWS BRIEF SL INDUSTRIES INC TWO DIRECTORS JOIN BOARD NUZZO IS ELECTED CHAIRMAN SL INDUSTRIES INC A MOUNT LAUREL NJ MAKER OF ELECTRICAL OUTLET STRIPS ELECTRICAL SURGE SUPPRESSORS AND NICHE INDUSTRIAL AND AEROSPACE PRODUCTS ELECTED TWO BOARD MEMBERS A MOVE MANAGEMENT HOPES WILL EASE THE TENSION REMAINING FROM A PROXY FIGHT LAST YEAR THE BOARD ALSO ELECTED A CHAIRMAN TO FILL A POST THAT HAD BEEN VACANT SINCE LAST NOVEMBER SALVATORE NUZZO A BOARD MEMBER SINCE 1988 WHO WAS ON MANAGEMENT'S SLATE IN LAST YEAR'S FIGHT FOR CONTROL OF THE BOARD SUCCEEDS BYRNE LITSCHGI WHO RETIRED MR NUZZO CHAIRMAN AND CHIEF EXECUTIVE OF TECHNAUTICS CORP IN CLEVELAND COULD NOT BE REACHED FOR COMMENT THE NEW DIRECTORS ARE EDWARD GAUGLER AN SL COFOUNDER WHO IS RETIRED AND ROBERT SANATOR DEAN OF THE COLLEGE OF MANAGEMENT AT LONG ISLAND UNIVERSITY DR GAUGLER A BOARD MEMBER FROM 1956 TO 1967 LOST ELECTION TO THE BOARD LAST YEAR AS A MANAGEMENT CANDIDATE BUT YESTERDAY HE DESCRIBED HIMSELF AS A PEACEMAKER ATTENTIVE TO THE CONCERNS OF THE THREE DISSIDENT BOARD MEMBERS WHO ARE LARGE STOCKHOLDERS THE BOARD IS INCREASED TO EIGHT MEMBERS FROM SEVEN 9309080010 930908 RTZ'S CANADIAN UNIT COMMITS TO TESTING OF DIAMOND DISCOVERY TORONTO A SECOND MINING COMPANY HAS COMMITTED TO BULK TESTING OF A DIAMOND DISCOVERY IN NORTHERN CANADA BRINGING THE PROSPECT OF A CANADIAN DIAMOND MINE A STEP CLOSER TO REALITY THE JUNIOR PARTNERS OF A JOINT VENTURE LED BY KENNECOTT CANADA INC TORONTO A UNIT OF RTZ CORP SAID KENNECOTT NOTIFIED THEM THAT IT INTENDS TO PROCEED WITH AN UNDERGROUND BULKSAMPLING PROGRAM ON A DIAMONDBEARING PIPE NEAR LAC DE GRAS IN CANADA'S NORTHWEST TERRITORIES THEY SAID A 5000METRICTON SAMPLE IS TO BE TRUCKED THIS WINTER TO A PLANNED PROCESSING PLANT IN YELLOWKNIFE NORTHWEST TERRITORIES A METRIC TON IS 22046 POUNDS LEE BARKER VICE PRESIDENT OF KENNECOTT PARTNER SOUTHERNERA RESOURCES LTD IN TORONTO SAID KENNECOTT TOLD HIS COMPANY THAT THE BULK TESTING PROGRAM WILL COST AROUND 10 MILLION CANADIAN DOLLARS US75 MILLION SOUTHERNERA SAID KENNECOTT ACCELERATED PRELIMINARY PROJECT SPENDING AND CASH PAYMENTS TO JUNIOR PROJECT PARTNERS AND NOW HOLDS A 65 INTEREST IN THE VENTURE KENNECOTT DECLINED TO CONFIRM THE SPENDING FIGURE OR COMMENT ON THE PROJECT HOWEVER DAVID JAMES AN ANALYST WITH RICHARDSON GREENSHIELDS SAID THE BULK TEST REPRESENTS A VERY VISIBLE FURTHER COMMITMENT TO THE DIAMOND PROJECT THIS SUMMER DIA MET MINERALS LTD A MINING COMPANY IN KELOWNA BRITISH COLUMBIA SAID THAT IT PLANNED TO BUILD A PILOT PLANT AT ANOTHER DIAMOND SITE NEAR LAC DE GRAS AND TO CARRY OUT AND TEST TWO 5000METRICTON BULK SAMPLES NEXT YEAR 9309080009 930908 WHAT'S NEWS BUSINESS AND FINANCE BOND PRICES RALLIED AMID A DROP IN GOLD AND OIL PRICES SENDING LONGTERM INTEREST RATES TO RECORD LOWS WHILE STOCKS FELL THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY 3/4 POINT ITS YIELD DROPPED TO 589 THE DOW JONES INDUSTRIALS TUMBLED 2683 POINTS TO 360710 GOLD FUTURES PRICES FELL SHARPLY ON HEAVY SELLING BY LARGE INVESTORS AND PERSISTENT RUMORS THAT EUROPEAN CENTRAL BANKS WERE ALSO SELLING GOLD GOLD FELL 1460 TO 35250 AN OUNCE BOEING MAY HELP ITS JAPANESE SUPPLIERS BUILD THEIR OWN SMALL AIRLINER IN A MOVE BEING WATCHED WARILY BY TECHNOLOGY EXPERTS AND UNION LEADERS CHRYSLER'S DEBT RATING WAS RAISED BY MOODY'S TO INVESTMENT GRADE PUTTING THE AUTO MAKER CLOSER TO ITS GOAL OF CUTTING BORROWING COSTS TO CUT THOSE COSTS SIGNIFICANTLY S&P WOULD ALSO HAVE TO UPGRADE THE DEBT BUT S&P SAID IT WON'T ACT UNTIL LABOR TALKS END FORD PREDICTED A 1 TO 2 UPTURN IN THE EUROPEAN CAR MARKET NEXT YEAR AFTER THE WORST DOWNTURN IN DECADES DRESSER INDUSTRIES AGREED TO BUY BAROID IN A STOCK DEAL VALUED AT ABOUT 850 MILLION A MOVE THAT ANALYSTS SAID IS THE BEGINNING OF LARGESCALE CONSOLIDATION IN THE OILSERVICE INDUSTRY BAXTER PLANS TO CUT SENIOR MANAGERS' PAY AS MUCH AS 25 AND FREEZE SALARIES OF OTHER EMPLOYEES SAYING THIRDQUARTER PROFIT IS EXPECTED TO FALL FROM A YEAR AGO BAXTER'S CHAIRMAN TOOK DIRECT CONTROL OF THE HOSPITAL SUPPLY DIVISION AND ANNOUNCED A REEXAMINATION OF ITS PORTFOLIO OF BUSINESSES OIL PRICES FELL AS ESTIMATES OF OPEC OIL OUTPUT ROSE AND DEMAND PROJECTIONS FOR THE REST OF THE YEAR DECLINED CRUDE SKIDDED 66 CENTS A BARREL TO 1707 GASOLINE FELL TO 4894 CENTS A GALLON THE LOWEST LEVEL SINCE 1989 THE SEC URGED CONGRESS TO REQUIRE CITIES AND GOVERNMENT AUTHORITIES THAT ISSUE MUNICIPAL SECURITIES TO DISCLOSE MORE ABOUT THEIR FINANCIAL HEALTH IBM OFFERED A GLOOMIER OUTLOOK FOR ITS BIG MINICOMPUTER BUSINESS PREDICTING THAT ITS 1993 REVENUE WILL BE ROUGHLY FLAT WITH 1992'S RESULTS COMPAQ AND IBM PLAN TO INTRODUCE NOTEBOOK COMPUTERS THAT CAN DOUBLE AS PEN WRITING PADS IN SEPARATE MOVES TO JUMPSTART A SLUGGISH MARKET ABBEY HEALTHCARE GROUP AGREED TO ACQUIRE TOTAL PHARMACEUTICAL FOR 197 MILLION IN THE LATEST MOVE TOWARD HCARE INDUSTRY CONSOLIDATION MEXICO'S PLANS TO BUILD ELECTRIC POWER PLANTS HAVE ANGERED US ENVIRONMENTAL OFFICIALS WHO ARE CONCERNED ABOUT POLLUTION AND ARE THREATENING TO ERODE CONGRESSIONAL SUPPORT FOR THE NORTH AMERICAN FREE TRADE PACT WMX TECHNOLOGIES GAVE UP TRYING TO BUILD A HAZARDOUS WASTE INCINERATOR IN CALIFORNIA BECAUSE OF RAPIDLY SHRINKING DEMAND FOR SUCH PLANTS TOKYO SHARES DROPPED BROADLY TUESDAY AS FERVENT HOPES FOR A JAPANESE INTERESTRATE CUT THAT HAD PUSHED PRICES HIGHER FOR TWO WEEKS COULDN'T OVERCOME FURTHER PROFITTAKING LONDON STOCK PRICES DECLINED 1 FRANKFURT SHARE PRICES TUMBLED 13 BONDS LEHMAN BROTHERS TREASURY INDEX 568598 UP 2209 COMMODITIES OIL 1707 A BARREL OFF 66 CENTS DOW JONES FUTURES INDEX 12579 OFF 066 SPOT INDEX 12183 OFF 031 DOLLAR 10420 YEN OFF 030 16130 MARKS OFF 00040 9309080008 930908 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN THE IRS VOWS MORE ACTION TO BAR EMPLOYEES FROM SNOOPING IN TAXPAYER FILES THE IRS RECENTLY REPORTED ITS DISCOVERY THAT 369 EMPLOYEES IN THE SOUTHEAST WERE INVESTIGATED FOR UNAUTHORIZED ACCESS TO TAXPAYER RECORDS AT LEAST FOUR EMPLOYEES ARE BEING PROSECUTED AND MANY OTHERS HAVE BEEN DISCIPLINED FOR OFFENSES INCLUDING BROWSING THROUGH RECORDS OF CELEBRITIES AND OTHER PEOPLE THE IRS SAYS THE AGENCY ALSO IS INVESTIGATING ANOTHER 100 EMPLOYEES IN OTHER REGIONS WE WILL NOT TOLERATE VIOLATIONS COMMISSIONER RICHARDSON SAYS THE IRS PLEDGES TO STRENGTHEN INTERNAL CONTROLS AND COMPUTERSECURITY PROCEDURES IT WILL USE NEW TECHNOLOGY TO IMPROVE MONITORING OF EMPLOYEE ACCESS TO TAXPAYER ACCOUNTS AND IT IS FOCUSING ON INHERENTLY HIGHRISK OPERATIONS SUCH AS CREDIT TRANSFERS AND ADJUSTMENTS TO TAXPAYERS' ACCOUNTS FOR FURTHER REVIEW IRS OFFICIALS SAY THEY ALREADY HAVE TAKEN STEPS TO REMIND EMPLOYEES TO SAFEGUARD TAXPAYER INFORMATION CARR FERGUSON A LAWYER AT DAVIS POLK & WARDWELL ALSO URGES THE IRS TO REVIEW ITS ETHICSTRAINING PROGRAMS BUT DEVELOPING A FOOLPROOF SYSTEM WILL BE VERY TOUGH IF NOT IMPOSSIBLE WARNS DONALD ALEXANDER A FORMER IRS COMMISSIONER WHO CURRENTLY IS A LAWYER AT AKIN GUMP A FRESH LOOK THE IRS PLANS CHANGES IN MANY 1993 TAX FORMS SOME PEOPLE MAY HAVE AN EASIER TIME FILLING OUT THEIR 1993 RETURNS BECAUSE OF PLANNED REVISIONS FOR THE FIRST TIME MANY MARRIED COUPLES WITH INCOME UNDER 50000 AND NO DEPENDENTS MAY USE THE ONEPAGE FORM 1040EZ PREVIOUSLY ONLY SINGLE FILERS COULD USE IT ALSO SCHEDULE D FOR CAPITAL GAINS AND LOSSES WILL HAVE 35 FEWER LINES THE FORMS FOR REPORTING HOME SALES AND FOR CHILD AND DEPENDENTCARE EXPENSES ALSO WILL HAVE FEWER LINES BUT THE NEW LAW WILL SUBJECT MANY TAXPAYERS TO MORE COMPLEXITY ESPECIALLY ON THEIR 1994 RETURNS THE IRS MUST REVISE ABOUT 150 FORMS AND INSTRUCTIONS AND IT MUST DEVELOP SIX NEW FORMS ALSO THE IRS SAYS ABOUT 15 ISSUES NEED PRIORITY GUIDANCE SUCH AS REGULATIONS RULINGS AND NOTICES IMPLEMENTING THE NEW LAW POSES BIG CHALLENGES AN IRS OFFICIAL SAYS SECURITIES DEALERS WIN MORE TIME TO COPE WITH A COMPLEX NEW LAW MANY BANKS AND OTHER FINANCIAL INSTITUTIONS ARE RELIEVED BY THE IRS'S DECISION TO DELAY AN IMPORTANT DEADLINE THE ISSUE INVOLVES MARKTOMARKET ACCOUNTING RULES REQUIRING SECURITIES DEALERS TO VALUE SECURITIES INVENTORIES AT MARKET PRICES NOT COST OR SOME OTHER BASE FOR YEAREND TAXES THE CHANGES FOR YEARS ENDING DEC 31 OR LATER ARE EXPECTED TO RAISE TAX REVENUES BY 38 BILLION OVER FIVE YEARS THE INSTITUTIONS ASKED FOR MORE TIME TO IDENTIFY WHICH SECURITIES ARE EXEMPT FROM THE NEW RULES THE IRS NOTING THAT MANY TAXPAYERS ARE HAVING DIFFICULTIES IN COMPLYING EXTENDED TOMORROW'S DEADLINE TO OCT 31 THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA SAYS IT IS VERY PLEASED BUT MANY QUESTIONS REMAIN ABOUT HOW TO DEFINE A SECURITIES DEALER THE ASSOCIATION WILL TRY TO CONVINCE THE TREASURY THAT MANY SMALL BANKS ARE NOT SECURITIES DEALERS AND THUS SHOULD BE EXEMPT FROM THE NEW LAW MORE HEARINGS ON PROPOSED NEW TAX LAWS WILL BE HELD TODAY AND ON SEPT 21 BY THE HOUSE WAYS AND MEANS SUBCOMMITTEE ON SELECT REVENUE MEASURES SUBCOMMITTEE CHAIRMAN RANGEL D NY SAYS MORE THAN 20 WIDERANGING PROPOSALS WILL BE EXAMINED CALIFORNIA LAWMAKERS MOVE CLOSER TO CHANGING THE STATE'S AGGRESSIVE METHOD OF TAXING MULTINATIONAL COMPANIES THAT IS GOOD NEWS FOR THE CLINTON ADMINISTRATION WHICH WAS ASKED BY THE SUPREME COURT FOR ITS VIEWS ON A CONTROVERSIAL CASE PASSAGE OF THE BILL WOULD ALLOW THE ADMINISTRATION TO SAY THE ISSUE IS MOOT AND THUS AVOID TAKING SIDES HELP STILL WANTED IRS CHIEF COUNSEL PAYS 108200 A YEAR PREVIOUS COUNSEL LEFT IN JANUARY TAX EXPERTS SAY IT IS ODD FOR SUCH AN IMPORTANT POST TO REMAIN UNFILLED FOR SO LONG A REPLACEMENT IS EXPECTED TO BE NAMED IN THE NEXT FEW WEEKS A GOVERNMENT OFFICIAL SAYS SURE WE BLEW IT BUT DON'T EXPECT US TO FIX IT ANYTIME SOON CONGRESS MADE A MISTAKE IN WRITING A PROVISION OF THE NEW LAW AFFECTING THE LUXURY TAX ON NEW AUTOS AS A RESULT MANY CAR BUYERS MUST PAY AS MUCH AS 200 MORE IN TAXES THIS YEAR THAN CONGRESS INTENDED HOPES ARE FADING FOR PASSING LEGISLATION SOON TO FIX THE ERROR IT JUST DOESN'T LOOK LIKE WE CAN DO ANYTHING ABOUT IT THIS YEAR A HOUSE STAFFER SAYS THE LAW NOW REQUIRES ANYONE WHO BUYS A CAR FOR MORE THAN 30000 TO PAY A 10 TAX ON THE AMOUNT OVER THAT LEVEL HOUSESENATE CONFEREES AGREED TO RAISE THE THRESHOLD TO 32000 IN 1993 ON SALES ON OR AFTER AUG 10 BUT THE ACTUAL WORDING OF THE LAW LEFT THE 30000 FIGURE UNCHANGED FOR ALL OF 1993 THUS THE TAX ON A 32000 CAR WOULD BE 200 CAR DEALERS ARE UNHAPPY BUT RESIGNED TO THE FACT THAT THIS THING HAS BEEN FOULED UP SAYS A LAWYER FOR THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION ADDS A HOUSE STAFFER IF THIS IS THE ONLY MISTAKE IN THE LAW WE'LL BE DOING MUCH BETTER THAN USUAL BRIEFS SEN MOYNIHAN D NY OFFERS A 2000 PRIZE FOR THE BEST ESSAY ON THE IMPACT OF TAXES ON NEW YORKERS ANYONE IS ELIGIBLE ENTRIES ARE DUE BY APRIL 15 AND NATURALLY THE PRIZE IS TAXABLE THE TAX COURT TRIMS ITS BACKLOG OF PENDING CASES TO 39650 AS OF JULY 31 FROM 44742 A YEAR BEFORE 9309080007 930908 FOREIGN EXCHANGE SURPRISE WEAK DOLLAR CONFOUNDS EXPERTS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHAT WENT WRONG THE DOLLAR IS 10 BELOW THE 180 MARKS THAT MANY FORECASTERS WERE ANTICIPATING BY NOW IN THEIR ENDOF1992 PROJECTIONS IT IS 19 UNDER THE TWO MARKS THAT A BRAVE FEW WERE PREDICTING BEFORE 1994 ROLLS AROUND IN FACT THE DOLLAR IS LOWER THAN WHERE IT BEGAN THIS YEAR AND 8 BELOW ITS 1993 PEAK SET ON AUG 2 BASICALLY THEY ALL GOT IT WRONG SAYS IAN BRIGHT AN ECONOMIST AT BARING BROTHERS & CO IN LONDON GERMAN INTEREST RATES DIDN'T FALL AS MUCH AS EVERYONE EXPECTED AND US RATES DIDN'T RISE AS EVERYBODY EXPECTED THE REASON THE EXPERTS BLEW IT NEARLY ALL ECONOMISTS OVERESTIMATED GROWTH IN THE US AND HAVE BEEN REVISING THEIR ESTIMATES DOWN EVER SINCE INCLUDING THE WHITE HOUSE LAST WEEK SAYS MR BRIGHT LAST WEDNESDAY THE CLINTON ADMINISTRATION SAID THE US ECONOMY WOULD GROW 2 IN 1993 DOWN FROM A 31 FORECAST EARLIER WHAT'S MORE IT WASN'T JUST SPECULATORS WHO BOUGHT INTO THE STRONG DOLLAR SCENARIO SAYS ALISON COTTRELL AN INTERNATIONAL ECONOMIST AT MIDLAND GLOBAL MARKETS IN LONDON IT WASN'T PURELY MARKETS BEING STUPID IN GERMANY BUSINESS SURVEYS SHOWED EXPORTERS CONFIDENT THAT A STRONGER DOLLAR WOULD HELP THEM BY MAKING THEIR GOODS MORE COMPETITIVE SHE CONTENDS THE BIG PICTURE STILL HOLDS BUT IT JUST ISN'T HAPPENING AS QUICKLY AS EVERYONE THOUGHT MS COTTRELL THINKS GERMANY'S BUNDESBANK WILL BEGIN LOWERING INTEREST RATES IN EARNEST BY NOVEMBER WHEN GERMAN INFLATION IS BELOW 4 AND THERE IS EVIDENCE OF MODERATING WAGE SETTLEMENTS IN GERMANY SHE EXPECTS THE DOLLAR TO TRADE AT 175 MARKS BY YEAR END MEANWHILE SHE SAYS YOU HAVE MAYBE ANOTHER EIGHT OR NINE WEEKS OF A STRONG MARK IN LATE NEW YORK TRADING YESTERDAY THE DOLLAR WAS AT 16130 MARKS AND 10420 YEN COMPARED WITH 16170 MARKS AND 10450 YEN LATE FRIDAY AND 16120 MARKS AND 10420 YEN IN LATE EUROPEAN TRADING MONDAY THE BRITISH POUND ROSE TO 15395 FROM 15280 BEFORE THE WEEKEND IN EUROPE ON MONDAY IT WAS QUOTED AT 15278 ABOUT NOON ON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10432 YEN AND AT 16133 MARKS THE DOLLAR WASN'T SUPPOSED TO BE THIS WEAK IN JUNE AND JULY UNION BANK OF SWITZERLAND PUBLISHED TWO REPORTS TITLED DOLLAR RESURGENCE TWO WEEKS FROM NOW THE DOLLAR WOULD BE AT 175 MARKS ITS ANALYSTS PREDICTED INSTEAD THE BANK'S MOST RECENT REPORT ISSUED FRIDAY WAS TITLED DEUTSCHEMARK RESURGENCE PREDICTING IN MIDJULY THAT THE DOLLAR WOULD BE TRADING AT 182 MARKS BY NOW AND AT 180 MARKS IN DECEMBER NATWEST MARKETS A UNIT OF BRITAIN'S NATIONAL WESTMINSTER BANK PLC SAID THE ONLY REAL CHANGE TO OUR FORECAST MUST BE THAT THE RISK OF OUR YEAREND ESTIMATE HAS NOW SHIFTED TO THE UPSIDE WHEREAS BEFORE IT WAS ON THE DOWNSIDE ALSO IN JULY JAMES CAPEL & CO TOLD ITS CLIENTS OF A DOLLAR IN THE ASCENDANCY ON JUNE 25 LEHMAN BROTHERS INTERNATIONAL IN LONDON PUT OUT A REPORT ENTITLED ADVANTAGE DOLLAR A DAY EARLIER MERRILL LYNCH ECONOMISTS TOLD CLIENTS WE VIEW THE DOLLAR'S GAINS VERSUS THE DEUTSCHEMARK AS THE BEGINNING OF AN EXTENDED RISE IN THE DOLLAR'S VALUE PREDICTING THAT THE BUNDESBANK WOULD EASE MONETARY POLICY SALOMON BROTHERS ON JUNE 18 TOLD ITS CLIENTS THAT A PERSISTENT STRENGTHENING OF THE DOLLAR VERSUS EUROPEAN CURRENCIES IS UNDER WAY THAT LIKELY WILL CARRY THE DOLLAR TOWARD 180 MARKS AND BEYOND CURRENCY GURUS AT CITIBANK CHASE MANHATTAN BANK BANQUE PARIBAS DEUTSCHE BANK AG AND OTHER INSTITUTIONS WERE SINGING MORE OR LESS THE SAME TUNE THE EXPECTATION WAS THAT YOU'D GET RAPID INTERESTRATE CUTS IN GERMANY AND THAT IN THE US YOU WOULD HAVE SUCH A STRONG RECOVERY THAT RATES WOULD RISE SAYS MIDLAND'S MS COTTRELL BUT THINGS DIDN'T WORK OUT THAT WAY TROUBLED BY A DOMESTIC INFLATION RATE STUCK ABOVE 4 AND FASTERTHANDESIRED GROWTH IN MONEY SUPPLY A KEY INDICTOR OF FUTURE INFLATION GERMANY'S CENTRAL BANK HAS CUT INTEREST RATES MUCH MORE SLOWLY THAN TRADERS ANALYSTS AND INTERNATIONAL INVESTORS ANTICIPATED THIS FOOTDRAGGING TRIGGERED A MAJOR EUROPEAN CURRENCY CRISIS THE RESULT OF WHICH WAS A FLIGHT TO QUALITY INTO THE MARK SAYS TONY BARON CHIEF ECONOMIST AT PAINEWEBBER INTERNATIONAL UK LTD IN LONDON ALSO UNDERPINNING THE MARK IS THE NEED FOR EUROPEAN CENTRAL BANKS PARTICULARLY THE BANQUE DE FRANCE TO BUY MARKS TO REPLENISH THEIR RESERVES AND TO REPAY FUNDS BORROWED FROM THE BUNDESBANK IN THE VAIN ATTEMPT TO KEEP EUROPE'S SEMIFIXED EXCHANGE RATE MECHANISM INTACT IN JULY THE MARK IS BEING FURTHER BUOYED BY THREEMONTH GERMAN INTEREST RATES THAT YIELD 65 COMPARED WITH 3125 FOR EQUIVALENT DOLLAR RATES THAT DIFFERENTIAL IS DETERRING INVESTORS FROM HOLDING DOLLARS BECAUSE YOU'D HAVE TO HAVE A PROSPECT OF NEARTERM DOLLAR APPRECIATION TO MAKE IT WORTHWHILE TO GIVE UP THE ADDITIONAL INTEREST INCOME THAT SHORTTERM GERMAN RATES OFFER SAYS MR BARON SOME ANALYSTS ALSO POINT TO EVIDENCE THAT THE RECESSIONRIDDEN GERMAN ECONOMY MAY BE BOTTOMING OUT WEST GERMAN MANUFACTURING ORDERS ROSE 31 IN JULY FROM THE MONTH BEFORE YESTERDAY THE GERMAN FEDERAL STATISTICS OFFICE SAID THE WESTERN GERMAN ECONOMY IN THE SECOND QUARTER GREW A SEASONALLY ADJUSTED 05 FROM THE FIRST QUARTER BOTH FIGURES WERE FAR ABOVE ANALYSTS' PROJECTIONS BY CONTRAST THE PACE OF THE US RECOVERY HAS DISAPPOINTED MARKET EXPECTATIONS SAYS MICHAEL BURKE AN ECONOMIST AT CITIBANK IN LONDON HE AND OTHERS POINT TO THE LOW LEVEL OF JOB GROWTH IN THE US PLUNGING FACTORY ORDERS AND INDICATIONS THAT THE MANUFACTURING SECTOR OF THE US ECONOMY DECLINED FOR THREE CONSECUTIVE MONTHS WHILE TRADERS AND ANALYSTS ONCE THOUGHT THE FEDERAL RESERVE MIGHT HAVE TO RAISE US INTEREST RATES TO TEMPER A FASTGROWING US ECONOMY MANY NOW WONDER IF THE FED MIGHT BE FORCED TO LOWER THEM TO KEEP THE RECOVERY GOING WHAT'S MORE THE US ACTIVELY MOVED TO HAVE THE DOLLAR WEAKER AGAINST THE YEN SAYS MR BRIGHT OF BARING BROTHERS THAT GAVE THE CURRENCY A SOFT TONE YOU CAN'T JUST TARGET AGAINST ONE CURRENCY BUT MANY FORECASTERS HAVEN'T TOTALLY ABANDONED STRONGER DOLLAR SCENARIOS THE DOLLAR HAS SCOPE TO APPRECIATE BUT FROM A MUCH LOWER BASE SAYS MR BURKE OF CITIBANK IT MAY NOT GET VERY FAR FROM THE 160 MARK LEVEL FOR A MONTH OR SO BUT WE COULD GET TO THIS YEAR'S HIGH 17480 MARKS IN THE EARLY PART OF NEXT YEAR HE NOTES THAT GERMAN EXPORTERS HAVE BEEN PULVERIZED BY THE STRONGER MARK PARTICULARLY AGAINST ITS MAJOR EUROPEAN TRADING PARTNERS WHOSE CURRENCIES COULD FALL SOME MORE BIG INCREASES IN LABOR COSTS AND HIGHER TAXES THE MARKET'S ASSESSMENT OF THE GERMAN RECESSION HAVING BOTTOMED IS INCORRECT AND THE MARKET IS LOOKING AT A TROUGH IN GERMAN INTEREST RATES WHICH IS FAR TOO SHALLOW SAYS MR BURKE GERMAN INTEREST RATES HAVE A LONG WAY TO GO BARING BROTHERS' MR BRIGHT AGREES HE SEES THE DOLLAR AT 175 MARKS BY YEAREND THE GERMANS ARE GOING TO LOWER RATES AT SOME TIME HE SAYS TOMORROW'S MEETING OF THE BUNDESBANK'S DECISIONMAKING CENTRAL COUNCIL COULD GIVE SOME INDICATION OF HOW QUICKLY GERMAN INTEREST RATES FALL AND THE DOLLAR BEGINS TO RECOVER BUT HAVING BEEN VERY DISAPPOINTED WHEN THE GERMAN CENTRAL BANK DIDN'T REDUCE RATES TWO WEEKS AGO TRADERS AND ANALYSTS ARE NOW SPLIT OVER WHETHER IT WILL TOMORROW 9309080006 930908 INTERNATIONAL HUNGARY'S INDUSTRIAL OUTPUT BUDAPEST FIRSTHALF INDUSTRIAL PRODUCTION IN HUNGARY INCREASED 16 FROM A YEAR EARLIER TO 1090 TRILLION FORINTS 119 BILLION THE STATE NEWS AGENCY MTI REPORTED OF THE TOTAL 8568 BILLION FORINTS WAS FOR DOMESTIC USE AND 2329 BILLION FORINTS WAS FOR EXPORT ACCORDING TO FIGURES FROM THE CENTRAL STATISTICAL OFFICE ENERGY CONSUMPTION IN THE FIRST HALF FELL 05 FROM A YEAR EARLIER 9309080005 930908 INTERNATIONAL BRIEF NIPPON STEEL CORP FORECAST FOR PRETAX LOSS TRIPLED FOR FISCAL 1ST HALF NIPPON STEEL CORP TUESDAY TRIPLED ITS FORECAST FOR A PRETAX LOSS FOR THE FISCAL FIRST HALF TO 15 BILLION YEN 1433 MILLION AND SAID IT WILL SUSPEND PAYMENT OF ITS INTERIM DIVIDEND AS JAPAN'S RECESSION AND THE STRONGER YEN TOOK THEIR TOLL ON THE COUNTRY'S BIGGEST STEELMAKER THE RED INK WILL BE THE FIRST PRETAX LOSS FOR THE COMPANY'S FIRST HALF WHICH BEGAN APRIL 1 IN THE SIX YEARS SINCE A 1987 SLUMP IN STEEL THE PROJECTED LOSS FOR THE SECOND HALF WIDENED FROM THE FIVE BILLION YEN PRETAX LOSS THAT THE COMPANY PREDICTED IN MAY AND WOULD BE AN EVEN SHARPER SWING FROM THE 1414 BILLION YEN OF PRETAX PROFIT IN THE YEAREARLIER PERIOD SALES ARE NOW EXPECTED BY THE COMPANY AT 1090 TRILLION YEN DOWN 09 FROM 1100 TRILLION YEN THAT IT PREDICTED EARLIER AND 82 BELOW THE 1188 TRILLION YEN RESULT A YEAR AGO 9309080004 930908 TECHNOLOGY UK PHONE VENTURE OFFERS FREE CALLING AT OFFPEAK HOURS LONDON U S WEST INC AND CABLE & WIRELESS PLC LAUNCHED THEIR MOBILETELEPHONE JOINT VENTURE IN BRITAIN OFFERING FREE LOCAL CALLS DURING OFFPEAK HOURS THE VENTURE IS THE WORLD'S FIRST COMMERCIAL TRIAL OF PERSONAL COMMUNICATIONS PHONE SERVICE THE SERVICE CALLED MERCURY ONE2ONE CHALLENGES EXISTING CELLULARTELEPHONE OPERATORS WITH PALMSIZED PORTABLE PHONES DIGITAL TECHNOLOGY AND CALL CHARGES THAT ARE AT LEAST 20 LOWER SEVERAL OTHER COMPANIES ARE TESTING SIMILAR SERVICES THE OFFER OF FREE CALLS FOR NONBUSINESS CUSTOMERS WHO PLACE CALLS BETWEEN 7 PM AND 7 AM FOLLOWS CRITICISM THAT THE SERVICE WOULD BE TOO EXPENSIVE A SPOKESWOMAN FOR THE VENTURE DENIED THAT THE FREECALL OFFER WAS IN RESPONSE TO THE CRITICISM SHE SAID IT IS A LONGTERM OFFER WHICH ALONG WITH A 10 MILLION 152 MILLION ADVERTISING CAMPAIGN IS PART OF A PLAN TO EXPAND THE SERVICE TO THE MASS MARKET THE VENTURE WHICH SERVES ONLY THE LONDON AREA PLANS TO REACH 26 OF THE UNITED KINGDOM POPULATION BY APRIL 1994 AND 90 BY DECADE'S END U S WEST AND CABLE & WIRELESS ARE SPENDING 300 MILLION INITIALLY TO BUILD THE SYSTEM IN THE LONDON AREA THE VENTURE POSES A CHALLENGE TO VODAFONE GROUP PLC AND CELLNET A JOINT VENTURE OF BRITISH TELECOMMUNICATIONS PLC AND SECURICOR GROUP PLC THE TWO COMPANIES WHICH HAVE HAD A DUOPOLY ON MOBILEPHONE SERVICE IN BRITAIN HAVE BEEN INTRODUCING LOWCOST SERVICES IN PREPARATION FOR NEW COMPETITION OTHER THAN THE FREE LOCAL CALLS FOR NONBUSINESS CUSTOMERS THE RATES REMAIN THE SAME AS ORIGINALLY ANNOUNCED BUSINESS SUBSCRIBERS WILL PAY 20 3055 A MONTH AND PERSONAL SUBSCRIBERS WILL PAY 1250 A MONTH 9309080002 930908 SHORTSELLERS' FUNDS ARE HELD IN FUTURE COMMUNICATIONS CASE NEW YORK A US DISTRICT COURT JUDGE TEMPORARILY PLACED IN ESCROW FUNDS THAT TWO SHORTSELLERS WOULD HAVE TO PAY TO COVER THEIR POSITIONS IN FUTURE COMMUNICATIONS INC UNTIL A HEARING ON WHETHER THE STOCK PRICE WAS ARTIFICIALLY INFLATED JUDGE THOMAS P GRIESA ORDERED NATIONAL SECURITIES CLEARING CORP THROUGH WHICH THE TRANSACTION WAS TO BE COMPLETED TO HOLD FUNDS FROM THE BROKERAGE FIRMS OF GORDON & CO AND FAHNESTOCK/CHRISTOPHER UNTIL A HEARING TODAY ON THEIR REQUEST FOR A RESTRAINING ORDER AND INJUNCTION TO HALT WHAT THEY ALLEGE WAS AN ILLEGAL BUYIN TRANSACTION FUTURE LAST TRADED AT 27375 ON AUG 31 WHEN THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HALTED TRADING TO DETERMINE IF THE CABLE TELEVISION CONCERN MET LISTING CRITERIA AFTER FUTURE SHARES HAD SOARED FROM 650 IN RECENT MONTHS GORDON AND FAHNESTOCK HAD RESPECTIVELY SOLD SHORT 56000 AND 65000 SHARES HOPING TO MAKE A PROFIT BY REPLACING THE BORROWED STOCK WITH SHARES PURCHASED AT A LOWER PRICE THE FIRMS SAID IN COURT FILINGS THAT RAFI KHAN A BROKER AND REYNOLDS KENDRICK STRATTON INC HIS EMPLOYER HAD EFFECTIVELY CORNERED THE MARKET IN FUTURE COMMON SHARES TO FORCE SHORTSELLERS TO BUY THE STOCK BY YESTERDAY AT A PRICE 36 THAT BORE NO RELATION TO THE MARKET PRICE MR KHAN CALLED THE ALLEGATIONS FRIVOLOUS AND 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 THE TWO SHORTSELLERS STAND TO LOSE A LITTLE MORE THAN 1 MILLION IN THE TRANSACTION ACCORDING TO ONE OF THEIR ATTORNEYS OFFICERS AT FUTURE COULDN'T BE REACHED 9309080001 930908 CANADIAN PRIME MINISTER CAPITALIZING ON REVIVED PARTY LIKELY TO CALL ELECTION BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN PRIME MINISTER KIM CAMPBELL LEADING A BORNAGAIN PROGRESSIVE CONSERVATIVE PARTY IS EXPECTED TO CALL AN ELECTION TODAY FOR OCT 25 UNTIL MS CAMPBELL REPLACED THE UNPOPULAR BRIAN MULRONEY AS PRIME MINISTER IN JUNE THE CONSERVATIVES HAD ALMOST BEEN WRITTEN OFF AS A CONTENDER IN THE NEXT ELECTION BUT WITH MS CAMPBELL AS LEADER THE CONSERVATIVES HAVE BOUNCED BACK AND ARE NOW AIMING FOR A THIRD CONSECUTIVE ELECTION VICTORY THE CONSERVATIVE TURNAROUND HAS BEEN AMAZING SAID DONNA DASKO VICE PRESIDENT OF ENVIRONICS RESEARCH GROUP LTD AN OPINION RESEARCH COMPANY MS CAMPBELL IS A VIGOROUS STANDARDBEARER FOR POLICIES ADVOCATED BY CANADIAN BUSINESS SHE IS A STRONG SUPPORTER OF THE NORTH AMERICAN FREE TRADE AGREEMENT SIGNED LAST YEAR BY THE US CANADA AND MEXICO SHE ALSO IS A STRONG ADVOCATE OF FISCAL AND MONETARY RESTRAINTS AIMED AT KEEPING CANADIAN INFLATION LOW AND ELIMINATING THE GOVERNMENT'S BUDGET DEFICIT WITHIN FIVE YEARS CANADIANS HAVE RESPONDED ENTHUSIASTICALLY TO THE 46YEAROLD LAWYER FROM BRITISH COLUMBIA SHE HAS THE HIGHEST APPROVAL RATING OF ANY GOVERNMENT LEADER IN 30 YEARS ACCORDING TO A RECENT GALLUP OPINION POLL POLITICAL ANALYSTS ATTRIBUTE MS CAMPBELL'S POPULARITY TO HER BEING A FRESH FACE AT A TIME WHEN CANADIANS ARE DISENCHANTED WITH VETERAN POLITICIANS MS CAMPBELL SERVED AS JUSTICE MINISTER AND DEFENSE MINISTER IN MR MULRONEY'S CABINET BUT SHE WAS COMPARATIVELY UNKNOWN TO THE PUBLIC AT LARGE UNTIL SHE MADE HER BID FOR THE CONSERVATIVE LEADERSHIP AFTER MR MULRONEY ANNOUNCED IN FEBRUARY HIS INTENTION TO RESIGN MS CAMPBELL'S TASK WILL BE TO CAPITALIZE ON HER PERSONAL POPULARITY TO BUILD SUPPORT FOR CONSERVATIVE CANDIDATES WHO MUST CAPTURE A MAJORITY IN THE 295SEAT HOUSE OF COMMONS IF HER GOVERNMENT IS TO BE ASSURED OF RETAINING POWER UNDER THE PARLIAMENTARY SYSTEM MS CAMPBELL'S NAME WILL ONLY BE ON THE BALLOT IN HER VANCOUVER CONSTITUENCY CANADIAN FINANCIAL MARKETS ARE EXPECTED TO BE JITTERY DURING THE ELECTION CAMPAIGN PARTICULARLY UNSETTLING IS THE PROSPECT THAT NO PARTY WILL WIN A MAJORITY OF HOUSE OF COMMONS SEATS BECAUSE OF INROADS BY TWO REGIONAL MOVEMENTS THE RIGHTWING REFORM PARTY IN WESTERN CANADA AND THE SEPARATIST BLOC QUEBECOIS IN THE LARGELY FRENCHSPEAKING QUEBEC PROVINCE DESPITE THE CONSERVATIVE REVIVAL IT IS DIFFICULT AT THIS STAGE TO SEE ANY PARTY WINNING A CLEAR MAJORITY SAID JAMIE DEACEY AN OTTAWA POLITICAL CONSULTANT MINORITY GOVERNMENTS TEND TO BE VIEWED AS WEAK BECAUSE THEY RELY ON OTHER PARTIES FOR SURVIVAL A MINORITY GOVERNMENT WOULD CERTAINLY STIR THE POT SAID LEO DE BEVER ECONOMIST AT NOMURA RESEARCH INSTITUTE BUT HE PREDICTED THAT ANY FINANCIAL MARKET UPHEAVAL WOULD ONLY BE TEMPORARY FINANCIAL MARKETS HAVE ALREADY BEEN UNSETTLED BY OPPOSITION LIBERAL PARTY THREATS TO ABANDON THE INFLATION REDUCTION STRATEGY OF BANK OF CANADA GOVERNOR JOHN CROW WHICH HAS SLOWED THE ANNUAL RISE IN CONSUMER PRICES TO LESS THAN 2 MAKING MONETARY POLICY A CENTRAL ISSUE IN THE ELECTION AMOUNTS TO PLAYING WITH FIRE SAID TED CARMICHAEL SENIOR ECONOMIST AT THE TORONTO SECURITIES COMPANY BURNS FRY LTD HE PREDICTED THE CANADIAN DOLLAR WILL REMAIN IN A VOLATILE DOWNTREND UNTIL THE ELECTION PROSPECTS BECOME CLEARER THE CANADIAN DOLLAR TRADING NEAR ITS LOWEST LEVEL AGAINST ITS US COUNTERPART IN SIX YEARS CLOSED IN TORONTO YESTERDAY AT 7574 US CENTS MS CAMPBELL IS EXPECTED TO ANNOUNCE THE ELECTION DATE AFTER SEEING GOVERNOR GENERAL RAY HNATYSHYN WHO EXERCISES THE FUNCTIONS OF HEAD OF STATE MS CAMPBELL'S OFFICE SAID SHE WOULD BE SEEING THE GOVERNOR GENERAL THIS MORNING 9309080091 930813 THE NEW COUNTERCULTURE BY PHILIP F LAWLER A GENERATION AFTER WOODSTOCK SEVERAL HUNDRED THOUSAND OF AMERICA'S YOUTH ARE AGAIN CONVERGING ON ONE SITE GATHERING IN DENVER THIS WEEK THEY WILL SING DANCE AND WHAT'S THIS PRAY AS THEY GREET POPE JOHN PAUL II ON HIS THIRD TRIP TO THE US IF THE POPE'S YOUTH DAY APPEARANCE LOOKS LIKE AN INNOCUOUS PAGEANT DO NOT BE DECEIVED THIS TOO IS THE GATHERING OF A COUNTERCULTURE AND MANY OF THESE TEENAGERS WILL RETURN FROM THE ROCKIES WITH PLANS AS SUBVERSIVE AS THOSE THEIR PARENTS' GENERATION BROUGHT HOME FROM UPSTATE NEW YORK OF COURSE THE SOCIAL PENDULUM HAS SWUNG AND THE MORAL PRINCIPLES THIS COUNTERCULTURE WILL UNDERMINE ARE ROUGHLY SPEAKING THOSE THAT GAINED PROMINENCE DURING THE AGE OF AQUARIUS NOWHERE IS THIS CLASH MORE OBVIOUS THAN ON THE QUESTION OF HUMAN SEXUALITY AND IN PARTICULAR IN THE CATHOLIC OPPOSITION TO ARTIFICIAL FORMS OF BIRTH CONTROL THIS YEAR THE CATHOLIC CHURCH CELEBRATES THE 25TH ANNIVERSARY OF HUMANAE VITAE THE ENCYCLICAL IN WHICH POPE PAUL VI REAFFIRMED THE TRADITIONAL CHRISTIAN BELIEF THAT ARTIFICIAL CONTRACEPTION IS IMMORAL JOHN PAUL II HAS FREQUENTLY REINFORCED THAT MESSAGE HE WILL INDUBITABLY REPEAT IT TO HIS YOUNG AMERICAN AUDIENCE THIS WEEK ALTHOUGH THE SECULAR WORLD DOES NOT ORDINARILY PAY MUCH ATTENTION TO A PAPAL ENCYCLICAL HUMANAE VITAE IS AN EXCEPTION FROM THE TIME OF ITS APPEARANCE IN THE SUMMER OF 1968 WHEN THE SHOCK WAVES FROM THAT EARLIER CULTURAL REVOLUTION WERE REVERBERATING AROUND THE WORLD TO TODAY IT HAS BEEN A LIGHTNING ROD FOR CONTROVERSY WITH THE POSSIBLE EXCEPTION OF DAS KAPITAL NO OTHER PUBLICATION IS SO HOTLY DISPUTED BY PEOPLE WHO HAVE NOT READ IT LIKE DAS KAPITAL HUMANAE VITAE CONTAINS A HOST OF PROPHECIES ABOUT SOCIAL QUESTIONS UNLIKE MARX POPE PAUL HAS PROVED TO BE AN ACCURATE PROPHET SECULAR CRITICS WILL NOT BE SURPRISED TO LEARN THAT PAUL VI PREDICTED THAT THE WIDESPREAD ACCEPTANCE OF CONTRACEPTION WOULD LEAD TO CONJUGAL INFIDELITY AND THE GENERAL DECLINE OF MORALITY BUT HUMANAE VITAE OFFERED OTHER MORE INTRIGUING PREDICTIONS SPECIFICALLY PAUL VI FORESAW THE RAPID RISE IN ABORTION THE GROWTH OF A MOVEMENT TO LEGALIZE EUTHANASIA THE USE OF FORCIBLE STERILIZATION BY TOTALITARIAN GOVERNMENTS AND THE FRIGHTENING SURGE IN VIOLENCE AGAINST WOMEN TWENTYFIVE YEARS LATER CAN ANYONE DOUBT THAT THESE PROPHESIES WERE ACCURATE THE HARSH CRITICISM OF HUMANAE VITAE IS ODD SINCE THE ENCYCLICAL MERELY REPEATS WHAT THE CHRISTIAN CHURCHES HAD TAUGHT FROM THE EARLIEST DAYS OF THE CHRISTIAN ERA THROUGH THE TIME OF CALVIN AND LUTHER WHO BOTH UNRESERVEDLY CONDEMNED CONTRACEPTION UNTIL THIS CENTURY WHEN AT THE 1931 LAMBETH CONFERENCE THE ANGLICAN COMMUNION BECAME THE FIRST MAJOR CHRISTIAN DENOMINATION TO CHANGE ITS MIND YET AT THE SAME TIME THE CONTROVERSY IS EMINENTLY UNDERSTANDABLE BECAUSE IN HUMANAE VITAE AND IN THE SUBSEQUENT STATEMENTS OF JOHN PAUL II THE POPES LAY BARE THE FATAL WEAKNESS OF CONTEMPORARY AMERICAN CULTURE A YEAR AGO IN THESE PAGES IN THE WAKE OF THE LOS ANGELES RIOTS WILLIAM BENNETT ARGUED PERSUASIVELY THAT THE ROOT CAUSE OF OUR NATION'S MOST TROUBLESOME SOCIAL PROBLEMS IS THE BREAKDOWN OF THE FAMILY THAT ARGUMENT IS THOROUGHLY COMPELLING TODAY 70 OF THE JUVENILE OFFENDERS IN LONGTERM CORRECTIONAL FACILITIES GREW UP WITHOUT A FATHER IN THE HOUSEHOLD AND THE US COMMISSION ON CIVIL RIGHTS ARGUES THAT DIVORCE AND ILLEGITIMACY ARE RESPONSIBLE FOR ESSENTIALLY ALL OF THE GROWTH IN POVERTY SINCE 1970 IF FAMILY BREAKDOWN IS THE SINGLE GREATEST CAUSE OF POVERTY CRIME AND DRUG ABUSE THEN AMERICAN SOCIETY IS CLEARLY GALLOPING IN THE WRONG DIRECTION DIVORCE NOW ENDS HALF OF ALL MARRIAGES AND THE RATE OF ILLEGITIMACY HAS INCREASED BY 57 IN THE PAST DECADE MORE ALARMING STILL THE RISE IN OUTOFWEDLOCK BIRTHS IS MOST DRAMATIC AMONG EDUCATED AFFLUENT WOMEN THE MURPHY BROWN SYNDROME SUGGESTING THAT THE SOCIAL STIGMA ON ILLEGITIMACY IS DISAPPEARING BUT IF FAMILY BREAKDOWN IS THE ROOT CAUSE OF OUR TROUBLE WHERE IS THE TAPROOT PROPONENTS OF TRADITIONAL FAMILY VALUES ARE SKATING ON THIN ICE AS LONG AS THEY AVOID THIS CENTRAL ISSUE THEIR ARGUMENTS FOR CHASTITY OUTSIDE MARRIAGE CAN BE REDUCED TO A PURELY ARBITRARY STATEMENT THAT SEX OUTSIDE MARRIAGE IS SOMEHOW UNSEEMLY FOR REASONS THAT OLDER PEOPLE FORMED IN A PREPILL MORALITY TAKE FOR GRANTED AND THAT THEIR CHILDREN CANNOT UNDERSTAND MUCH LESS ACCEPT TRADITIONALLY SOCIETY HAS REVERED THE FAMILY FORMED BY MARRIAGE AS THE EXCLUSIVE FORUM FOR BOTH SEXUAL INTIMACY AND THE REARING OF CHILDREN WHEN MARITAL LOVE IS OPEN TO PROCREATION IT LINKS THOSE TWO VITAL ROLES SEVER THE LINK MAKE SEX A RECREATIONAL ACTIVITY AND MARRIAGE AND CONSEQUENTLY THE FAMILY IS NO LONGER UNIQUE IF SEX IS A FORM OF RECREATION HOW CAN WE PLAUSIBLY DENY TEENAGERS THE PLEASURE THAT THEIR PARENTS ENJOY IF MARRIAGE IS SIMPLY AN EMOTIONAL COMMITMENT WHY SHOULD HOMOSEXUAL UNIONS BE DENIED LEGAL RECOGNITION IF THE APOSTLES OF FREE LOVE HAD DELIVERED ON THEIR PROMISES THIS ARGUMENT MIGHT BE MOOT BUT WHILE CONTRACEPTIVE TECHNOLOGY HAS EXPANDED AND SOCIAL INHIBITIONS HAVE SHRIVELED TODAY'S SEXUAL ADVENTURERS SEEM JOYLESS AND MECHANICAL BELEAGUERED BY THE FEAR OF DISEASE MISTRUSTFUL OF EMOTIONAL COMMITMENTS INCAPABLE OF TRUE INTIMACY IN THE LAST YEARS OF THE DECAYING ROMAN EMPIRE EPICURES WOULD VOMIT UP ONE SUMPTUOUS FEAST TO MAKE ROOM FOR ANOTHER IN THE LONG RUN THE EPICURES SUFFERED FROM INDIGESTION AND OUR MODERNDAY SYBARITES HAVE UNEARTHED A WHOLE NEW ASSORTMENT OF PREVIOUSLY OBSCURE SEXUAL DYSFUNCTIONS AGAINST THAT GRIM HEDONISM THE CATHOLIC COUNTERCULTURE OFFERS AN IDEALISTIC PRESCRIPTION FOR ROMANTIC MARRIED LOVE WHEN THE MARITAL ACT INVOLVES A TOTAL GIFT OF SELF UNENCUMBERED BY LATEX DEVICES AND HORMONE PILLS THE POPES PROMISE A STRONGER DEEPER AND MORE LASTING MUTUAL LOVE SO WHILE THE VAST MAJORITY PLUNGE HEADLONG IN THE OPPOSITE DIRECTION THOUSANDS OF DEDICATED COUPLES PRACTICE THE SELFMASTERY THAT IS ESSENTIAL TO NATURAL FAMILY PLANNING NFP THE IDEAL IS ADMITTEDLY DIFFICULT TO ACHIEVE BUT THE RESULTS JUSTIFY THE EFFORT DOCTORS HAVE TOLD MY OWN WIFE THAT ANOTHER PREGNANCY MIGHT KILL HER THEY DID NOT TELL HER BECAUSE THEY PROBABLY DID NOT KNOW HOW MUCH OUR MUTUAL FORBEARANCE WOULD ENRICH OUR MARRIAGE AMONG MARRIED COUPLES WHO ESCHEW ARTIFICIAL CONTRACEPTION AND RELY EXCLUSIVELY ON NATURAL FAMILY PLANNING THE RATE OF DIVORCE IS ALMOST TRIVIAL ESTIMATES RANGE FROM A HIGH OF 3 TO BELOW 1 SKEPTICS MIGHT POINT OUT THAT THOSE ESTIMATES ARE MISLEADING THE COUPLES WHO USE NFP ARE NOT A TYPICAL CROSS SECTION OF AMERICANS THEY ARE MUCH MORE LIKELY TO BE MOTIVATED BY A STRONG RELIGIOUS FAITH IS THEIR EYEOPENING RATE OF MARITAL SUCCESS A TRIBUTE TO NFP OR TO THE RELIGIOUS COMMITMENT THAT SO OFTEN PRECEDES IT FOR POPE JOHN PAUL FOR HIS YOUNG FANS IN DENVER AND PERHAPS FOR AMERICAN SOCIETY AS A WHOLE EITHER ANSWER WOULD BE WELCOME MR LAWLER IS THE EDITOR OF CATHOLIC WORLD REPORT AN INTERNATIONAL MONTHLY MAGAZINE SEE RELATED LETTERS LETTERS TO THE EDITOR KEEP THE CHURCH OUT OF OUR BEDROOMS WSJ SEPT 8 1993 9308130157 YY93 MM09 9309070164 930907 POLITICS & POLICY SEC TRIES TO SETTLE WITH CHICAGO CORP CANTOR FITZGERALD ON TREASURY BIDDING BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS ENGAGED IN SEPARATE TALKS WITH CHICAGO CORP AND CANTOR FITZGERALD & CO AIMED AT SETTLING ANTICIPATED CHARGES RELATING TO NONCOMPETITIVE BIDDING AT TREASURY AUCTIONS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTERS THE SEC'S INVESTIGATION OF CHICAGO CORP'S NONCOMPETITIVE BIDDING ACTIVITIES HADN'T PREVIOUSLY COME TO LIGHT THE AGENCY'S CANTOR FITZGERALD INQUIRY WAS DISCLOSED LAST YEAR A CHICAGO CORP SPOKESWOMAN DECLINED TO COMMENT ON THE MATTER AS DID A LAWYER FOR CANTOR FITZGERALD A UNIT OF THE GIANT GOVERNMENT SECURITIES BROKER CANTOR FITZGERALD SECURITIES CORP OF NEW YORK IN A REPORT IT SUBMITTED TO CONGRESS LAST YEAR ON ITS NONCOMPETITIVE BIDDING ACTIVITIES CANTOR DENIED ANY WRONGDOING JOSEPH GOLDSTEIN THE SEC'S ASSOCIATE DIRECTOR FOR ENFORCEMENT HAD NO COMMENT THE TREASURY PERMITS NONCOMPETITIVE BIDDING TO FACILITATE PARTICIPATION IN ITS AUCTIONS BY SMALLER INVESTORS THE ABILITY TO BID NONCOMPETITIVELY ALLOWS SMALL INVESTORS WHO MAY NOT BE MARKETSAVVY TO PURCHASE SECURITIES AT A CURRENT MARKET YIELD NONCOMPETITIVE BIDDERS RECEIVE SECURITIES AT THE AVERAGE YIELD OF ACCEPTED COMPETITIVE BIDS BUT AREN'T ALLOWED TO AGREE IN ADVANCE TO RESELL THE SECURITIES SUSPECTED ABUSES IN NONCOMPETITIVE BIDDING CAME TO LIGHT WHEN THE SALOMON BROTHERS INC SCANDAL FOCUSED REGULATORY ATTENTION ON THE GOVERNMENT SECURITIES MARKET AT THAT TIME OFFICIALS SAID THAT SOME SOPHISTICATED MARKET PARTICIPANTS APPEARED TO BE USING THE NONCOMPETITITVE PROGRAM FOR ARBITRAGE PURPOSES IMMEDIATELY RESELLING THE SECURITIES FOR A PROFIT THE TREASURY SAID SOME CASES HAD BEEN REFERRED TO THE SEC TELERATE INC A UNIT OF DOW JONES & CO PUBLISHER OF THIS NEWSPAPER HAS A BUSINESS RELATIONSHIP WITH CANTOR FITZGERALD SECURITIES LAST WEEK THE SEC TOOK ITS FIRST ENFORCEMENT ACTION EVER IN THE NONCOMPETITIVE BIDDING AREA CHARGING DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND CARROLL MCENTEE & MCGINLEY SECURITIES INC TWO PRIMARY DEALERS IN GOVERNMENT SECURITIES WITH RECORDKEEPING VIOLATIONS IN CONNECTION WITH NONCOMPETITIVE BIDS AT TREASURY AUCTIONS THE FIRMS SETTLED THEIR CASES WITHOUT ADMITTING OR DENYING THE CHARGES DONALDSON LUFKIN AGREED TO PAY 150000 IN SETTLING THE CASE CARROLL MCENTEE AGREED TO PAY 30000 THE SUSPECTED VIOLATIONS IN THE CHICAGO CORP AND CANTOR MATTERS ARE DESCRIBED BY PEOPLE FAMILIAR WITH THE MATTERS AS MORE SERIOUS THAN THE VIOLATIONS ALLEGED IN THE TWO CASES SETTLED LAST WEEK 9309070163 930907 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST 9309070162 930907 WHO'S NEWS SYSCO CORP SYSCO CORP HOUSTON FRANK H RICHARDSON WAS ELECTED TO THE BOARD OF THIS FOODSERVICE DISTRIBUTION CONCERN INCREASING ITS SIZE TO 17 MR RICHARDSON 60 YEARS OLD RETIRED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SHELL OIL CO IN JUNE 9309070160 930907 INTERNATIONAL JAPAN MAY BE FORCED TO IMPORT RICE TO MEET LOOMING DOMESTIC SHORTAGE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FACED WITH WHAT LOOKS LIKE ONE OF ITS WORST RICE HARVESTS SINCE WORLD WAR II JAPAN MAY SOON BE FORCED INTO HERESY IMPORTING FOREIGN RICE TO MEET A LOOMING DOMESTIC SHORTFALL BUREAUCRATS AT THE AGRICULTURE MINISTRY CONTINUE TO INSIST THE HARVEST WON'T BE THAT BAD AND THAT IMPORTS WON'T BE NECESSARY BUT INDEPENDENT ANALYSTS WHO CLOSELY MONITOR THE RICE CROP ARE MUCH MORE PESSIMISTIC GIVEN BAD WEATHER THIS SUMMER AND OTHER FACTORS I THINK WE MAY HAVE TO IMPORT MORE THAN ONE MILLION TONS OF RICE OR ABOUT 10 OF JAPAN'S TOTAL CONSUMPTION SAID ANALYST TOSHIHARU NISHIGUCHI OF RICE DATABANK A TOKYO CONSULTING COMPANY EMERGENCY RICE IMPORTS COULD PROVE EMBARRASSING FOR JAPAN WHICH SINCE 1965 HAS BANNED IMPORT OF MOST RICE TO PROMOTE JAPANESE SELFSUFFICIENCY IN RICE PRODUCTION RICE IMPORTS COULD ALSO PROVIDE AMMUNITION FOR THE US WHICH HAS MADE THE IMPORT BAN ONE OF ITS MOST HIGHLY CHARGED TRADE DISPUTES WITH JAPAN ALTHOUGH IMPORTING RICE WOULD BARELY DENT JAPAN'S HUGE GLOBAL TRADE SURPLUS THE PROHIBITION HAS BECOME A POWERFUL SYMBOL OF THE VISIBLE AND INVISIBLE TRADE BARRIERS IN JAPAN THAT FOREIGN COMPANIES AND GOVERNMENTS OFTEN COMPLAIN ABOUT RESTRICTIONS ON IMPORTS ALSO THREATEN THE URUGUAY ROUND OF WORLD TRADE TALKS NOW UNDER WAY IN GENEVA WHICH ARE AIMED AT LOWERING BARRIERS TO AGRICULTURAL TRADE NEGOTIATORS HAVE PROPOSED REPLACING ALL AGRICULTURAL IMPORT BARRIERS WITH TARIFFS THAT WILL DIMINISH OVER TIME BUT JAPAN HAS SO FAR DRAGGED ITS FEET THE AGRICULTURE MINISTRY CONCEDES THAT A COOL SUMMER A LONGER THAN NORMAL RAINY SEASON AND WIDESPREAD RICE BLIGHT HAVE DAMAGED THIS YEAR'S CROP IN ITS LATEST FORECAST BASED ON DATA COLLECTED BEFORE AUG 15 THE MINISTRY PREDICTED A 5 DROP IN THE HARVEST COMPARED WITH THE AVERAGE OF SEVERAL PREVIOUS YEARS THE WORST FORECAST SINCE 1953 OFFICIALS HOWEVER QUICKLY DECLARED THE HARVEST WOULD STILL BE SUFFICIENT TO MEET DEMAND WE HAVE NO PLANS TO CONSIDER IMPORTS AT THIS TIME SAID ONE STILL ANALYSTS LIKE MR NISHIGUCHI HAVE PLENTY OF REASONS TO DOUBT THE MINISTRY FOR STARTERS ITS FORECAST IS BASED ON AN ASSUMPTION OF NORMAL WEATHER FROM MIDAUGUST TWO TYPHOONS HAVE ALREADY HAMMERED JAPAN SINCE THEN FLOODING MANY ALREADY DAMAGED FIELDS IN SOUTHERN JAPAN THE AMOUNT OF RICE DELIVERED TO THE MINISTRY FOR INSPECTION BY AUG 10 WAS DOWN 73 FROM THE YEAR BEFORE BECAUSE OF STUNTED CROP GROWTH WITH SUCH FACTORS IN MIND MR NISHIGUCHI PREDICTS THE FINAL HARVEST WILL DROP 15 COMPARED WITH PREVIOUS YEARS AND THAT THE GOVERNMENT WILL HAVE TO DECIDE WHETHER TO ALLOW IMPORTS BY NOVEMBER OR DECEMBER AT THE LATEST US OFFICIALS SAY THE TIMING MIGHT BE FORTUITOUS AS THE NEED FOR EMERGENCY IMPORTS MIGHT ALLOW JAPAN A FACESAVING WAY TO ACCEDE TO THE DEMANDS OF THE URUGUAY ROUND ALL ALONG THEY'VE SAID THEY DON'T NEED IMPORTS AND NOW THEY DO SAYS ONE US OFFICIAL THE URUGUAY ROUND IS COMING TO A CRITICAL PERIOD AND SOME DEFINITE ACTION NEEDS TO TAKE PLACE THIS MAY ALLOW JAPAN TO GRACEFULLY SAY YES WE DO NEED IMPORTS OF COURSE CHANGING RICE POLICY STILL GOES AGAINST THE GRAIN IN JAPAN ALLOWING SALES OF IMPORTED RICE WHICH COULD BE AS MUCH AS EIGHT TIMES CHEAPER THAN DOMESTIC RICE WOULD UNDERCUT THE POWERFUL RICE FARMING LOBBY LONG A PILLAR OF JAPAN'S POLITICAL ORDER EVEN NEW PRIME MINISTER MORIHIRO HOSOKAWA A FORMER OPPOSITION POLITICIAN WHO BEFORE HIS ELECTION CALLED FOR ALLOWING RICE IMPORTS RECENTLY CALLED FOR A SOLUTION TO THE TRADE IMPASSE BASED ON MUTUAL COOPERATION UNDER OUR BASIC POLICY A EUPHEMISM FOR THE RICEIMPORT BAN THE POWER OF JAPAN'S ENTRENCHED RICE INTERESTS IS ONE REASON OFFICIALS SOMETIMES GO TO GREAT LENGTHS TO DEFEND THE BAN EMERGENCY IMPORTS WERE LAST NECESSARY IN 1984 WHEN A POOR HARVEST FORCED JAPAN TO IMPORT 150000 TONS OF RICE FROM SOUTH KOREA TODAY AGRICULTURAL OFFICIALS DENY THAT THEY HAD TO BEND THE RULES BACK THEN INSISTING INSTEAD THAT SOUTH KOREA MERELY RETURNED RICE IT HAD EARLIER BORROWED FROM JAPAN THE SAME OFFICIALS ALSO TEND TO GLOSS OVER THE FACT THAT JAPAN ALREADY ANNUALLY IMPORTS 15000 TONS OF RICE FROM THAILAND TO MAKE SHOCHU A RICE LIQUOR 9309070159 930907 WOLOHAN LUMBER SALES RISE SAGINAW MICH WOLOHAN LUMBER CO SAID SALES CLIMBED 13 IN AUGUST TO 375 MILLION FROM 333 MILLION A YEAR EARLIER SALES BY STORES OPEN ONE YEAR OR LONGER ROSE 11 EIGHTMONTH SALES ROSE 39 TO 242 MILLION FROM 233 MILLION A YEAR EARLIER SALES BY STORES OPEN ONE YEAR OR LONGER EDGED UP 17 9309070158 930907 WHO'S NEWS INGERSOLLRAND CO INGERSOLLRAND CO WOODCLIFF LAKE NJ DONALD J BAINTON 62 YEARS OLD WAS ELECTED A DIRECTOR AT THIS MANUFACTURER OF INDUSTRIAL AND MINING MACHINERY DOOR HARDWARE AND BEARINGS INCREASING THE BOARD'S SIZE TO 11 MR BAINTON IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CONTINENTAL CAN CO SYOSSET NY 9309070157 930907 CHEMICAL UNIT BUYS HAWAII FIRM SAN FRANCISCO CHEMICAL TRUST CO OF CALIFORNIA A SUBSIDIARY OF CHEMICAL BANKING CORP SAID IT ACQUIRED THE SHAREHOLDER SERVICES OF BISHOP TRUST CO OF HAWAII CHEMICAL TRUST DIDN'T DISCLOSE TERMS OF THE TRANSACTION WHICH MUST BE APPROVED BY REGULATORY OFFICIALS IN HAWAII CHEMICAL TRUST SAID THE PURCHASE OF BISHOP TRUST WILL MAKE IT THE LARGEST TRANSFER AGENT REPRESENTING HAWAIIAN COMPANIES 9309070156 930907 GENERALE DES EAUX 1STHALF SALES PARIS CIE GENERALE DES EAUX A PUBLICWORKS AND CONSTRUCTION GROUP POSTED FIRSTHALF CONSOLIDATED REVENUE OF 6899 BILLION FRANCS 1192 BILLION UP SLIGHTLY FROM 6858 BILLION FRANCS A YEAR EARLIER GENERALE DES EAUX ANNOUNCED THE REVENUE FIGURE IN A LEGAL NOTICE IT DIDN'T RELEASE ANY OTHER FIRSTHALF FIGURES OR COMMENT ON ITS PERFORMANCE 9309070155 930907 FINANCING BUSINESS VICTORIA FINANCIAL CORP VICTORIA FINANCIAL CORP CLEVELAND SAID IT WOULD OFFER 12 MILLION SHARES OF COMMON STOCK AT A PRICE OF 12 PER SHARE AS A RESULT OF A 1FOR25 REVERSE STOCK SPLIT THE TOTAL PROPOSED OFFERING OF THREE MILLION SHARES CONSISTS OF 12 MILLION SHARES ON A POSTSPLIT BASIS THE AUTOMOBILE INSURANCE COMPANY SAID IT WOULD ISSUE 880000 SHARES WHILE STOCKHOLDERS WILL SELL 320000 SHARES PROCEEDS WILL BE USED TO FUND GROWTH AND EXPANSION OF THE COMPANY'S OPERATIONS WILLIAM BLAIR & CO AND MCDONALD & CO ARE THE UNDERWRITERS 9309070154 930907 WHO'S NEWS EXCHAIRMAN CEO OF GIDDINGS & LEWIS CUTS ALL TIES TO FIRM FOND DU LAC WIS GIDDINGS & LEWIS INC DISCLOSED THAT WILLIAM J FIFE JR THE FORMER CHAIRMAN AND CHIEF EXECUTIVE WHO RESIGNED UNDER PRESSURE IN APRIL SEVERED HIS LAST TIES WITH THE COMPANY MR FIFE FORFEITED CERTAIN STOCK RIGHTS AND AGREED TO PURCHASE SOME REAL ESTATE THAT PLAYED A ROLE IN HIS SURPRISE DEPARTURE FROM THE NATION'S BIGGEST MACHINETOOL CONCERN BUT HE WILL GET 250000 A YEAR AND RECEIVE LIFE AND HEALTH INSURANCE FOR TWO YEARS IN EXCHANGE FOR A NONCOMPETE AND CONFIDENTIALITY AGREEMENT MR FIFE HAS BEEN CREDITED WITH SKILLFULLY TRANSFORMING THE ONCETROUBLED GIDDINGS INTO ONE OF NATION'S MOST SUCCESSFUL MAKERS OF FACTORY MACHINES DURING HIS SIXYEAR TENURE BUT HE RAN AFOUL OF THE COMPANY'S BOARD IN PART BECAUSE OF HIS ABRASIVE MANNER AND IN PART BECAUSE OF SOME LAND PURCHASES INTO WHICH HE STEERED THE COMPANY IN ONE 1992 TRANSACTION GIDDINGS ACQUIRED FROM MR FIFE CONDOMINIUM PROPERTY AT A RESORT IN MISSOURI'S LAKE OF THE OZARKS REGION WHICH MR FIFE HAD EARLIER UNSUCCESSFULLY SOUGHT TO SELL IN ANOTHER IT ACQUIRED A PIECE OF UNDEVELOPED LAND THAT ABUTS LAND HE ACQUIRED ALTHOUGH HE STEPPED DOWN FROM THE TOP JOBS MR FIFE HAD TECHNICALLY REMAINED A GIDDINGS & LEWIS EMPLOYEE BUT GIDDINGS SAID LATE FRIDAY THAT UNDER TERMS OF A MUTUALLY ACCEPTABLE SEPARATION AGREEMENT WHOSE TERMS WEREN'T FULLY DISCLOSED HE HAS FORMALLY LEFT THE COMPANY THE ARRANGEMENT CALLS FOR MR FIFE TO ACQUIRE FROM THE COMPANY FOR THE PRICE IT PAID THE MISSOURI REAL ESTATE AND THE UNDEVELOPED PACKET OF LAND NEAR HIS HOME IN FOND DU LAC HE ALSO FORFEITED OPTIONS FOR 120000 SHARES OF GIDDINGS COMMON STOCK AND 60000 COMMON SHARES WHICH VESTED DURING HIS TIME AT THE COMPANY GIDDINGS & LEWIS SAID HE WILL RECEIVE NEXT JULY 60000 SHARES OF RESTRICTED STOCK AS PART OF THE COMPANY'S STOCK PLAN SUBJECT TO MR FIFE'S COMPLIANCE WITH ALL OF THE TERMS OF THE SEPARATION AGREEMENT 9309070153 930907 IF YOU WANT THIS AT THE LIBRARY TAKE IT OUT WITH A BORROWED CARD BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL FED UP JAMES MARTIN CAN HELP YOU GET AWAY FROM IT ALL PERMANENTLY A CIVIL LAWYER IN SANTA CRUZ CALIF MR MARTIN IS THE AUTHOR OF SCRAM RELOCATING UNDER A NEW IDENTITY A HOWTO ON HIGHTAILING IT HAVE YOU EVER WATCHED A SHIP GO OUT TO SEA AND WISHED YOU WERE ON IT THE JACKET READS YOU'RE NOT ALONE MANY PEOPLE WOULD LOVE TO MAKE A FRESH START IN A NEW TOWN UNDER A NEW NAME MR MARTIN 46 YEARS OLD SAYS THE BOOK WAS INSPIRED BY PEOPLE HE MET THROUGH HIS WORK AND WHILE LIVING OVERSEAS I WAS NOT UNDER AN ALIAS HE'S QUICK TO POINT OUT PUBLISHED BY THE SEATTLE SURVIVALIST PRESS LOOMPANICS UNLIMITED SCRAM DOESN'T ENCOURAGE PEOPLE TO HIT THE TRAIL MR MARTIN INSISTS BUT IS SUPPORTIVE AND UNDERSTANDING IF THEY DO THE BOOK SPANS ISSUES FROM CHOOSING AN ALIAS CAUTIONING AGAINST SOMETHING UNIQUE SUCH AS A MATHEMATICAL EQUATION OR A CHEMICAL SYMBOL TO FAKING ONE'S DEATH WHAT IF I NOTIFIED THE POLICE THAT A PERSON FELL IN THE RIVER AND WAS SWEPT AWAY I COULD LEAVE SOME OF MY ITEMS ON THE BANK AND THE POLICE WOULD INFER MY DEATH BEGINS A SECTION IN THE BOOK'S QUESTIONANDANSWER FORMAT THE ANSWER DON'T DO IT MR MARTIN ILLUSTRATES HIS MANUAL WITH CASE STUDIES OF THE FAMOUS DISAPPEARED SUCH AS ABBIE HOFFMAN AND THE NOTSOFAMOUS SUCH AS CHARLIE THE LOSER A LUCKLESS MARIJUANA USER PERTINENT TOPICS INCLUDE GETTING FAKE SOCIAL SECURITY CARDS AND AVOIDING POLICE SEARCHES I'M NOT SAYING YOU HAVE TO CON AN AGENCY HE SAYS GETTING DOCUMENTS ISN'T THAT HARD QUITE A FEW ILLEGAL ALIENS HAVE FIGURED IT OUT THERE ARE GOOD AND BAD REASONS TO SCRAM HE SAYS AN ABUSIVE SPOUSE IS A GOOD REASON SHIRKING CHILD PAYMENTS ISN'T I'VE HAD SOME TROUBLE WITH THE CRIMINAL JUSTICE SYSTEM AND I'D LIKE TO LEAVE IT BEHIND ME WILL THE POLICE SEARCH FOR ME ASKS ONE QUESTION PROBABLY DISAPPEARING IS EASIER FOR SOME THAN FOR OTHERS NOTES MICHAEL SLATTERY MANAGING DIRECTOR OF KROLL ASSOCIATES A CORPORATE INVESTIGATIVE AGENCY IF YOU STOLE 50 MILLION PEOPLE WILL REALLY WANT TO FIND YOU HE SAYS BUT IF YOU'RE SINGLE WITHOUT DEBTS OR TIES AND YOU CHANGE YOUR NAME WHO GIVES A HOOT BIG CITIES ARE THE BEST PLACES TO VANISH MR MARTIN BELIEVES SOUTHERN CALIFORNIA IS DIVERSE YOU'D FIT IN EASILY IF YOU GO TO MONTANA IT'S SO VANILLA YOU'D STICK OUT 9309070152 930907 WEIRTON STEEL AUTHORIZED STOCK WEIRTON WVA WEIRTON STEEL CORP'S BOARD VOTED TO DOUBLE THE NUMBER OF AUTHORIZED SHARES TO 60 MILLION IT HAS CALLED A SPECIAL SHAREHOLDERS MEETING FOR OCT 14 TO CONSIDER THE ACTION THE COMPANY NOW HAS ONLY 400000 SHARES TO ISSUE IN THE OPEN MARKET AND WOULD LIKE TO ISSUE MORE SHARES TO REDUCE DEBT THE STEELMAKER'S LONGTERM DEBT IS ABOUT 495 MILLION ABOUT 90 OF ITS CAPITALIZATION A SPOKESMAN SAID 9309070151 930907 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED SEPTEMBER 3 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ALASKA WILL REDEEM IN AN OPTIONAL REDEMPTION ON OCT 4 1993 THE FOLLOWING INTERNATIONAL AIRPORTS REVENUE BONDS SERIES F 9 DUE AUG 1 1994 9125 DUE AUG 1 1995 93 DUE AUG 1 1996 94 DUE AUG 1 1997 95 DUE AUG 1 199899 AND SERIES G 67 DUE OCT 1 1994 68 DUE OCT 1 1995 7 DUE OCT 1 1996 7625 DUE OCT 1 2006 AND 77 DUE OCT 1 2015 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE ANAHEIM CALIF WILL REDEEM ON OCT 1 1993 ITS 1983 ELECTRIC REVENUE BONDS ISSUES A B AND C DUE OCT 1 1994 BANK OF AMERICA GLENDALE CALIF IS PAYING AGENT CAMPBELL COUNTY KY WILL REDEEM ON OCT 1 1993 295000 PRINCIPAL AMOUNT OF ITS 525 KENTUCKY HOSPITAL REVENUE BONDS SERIES 1973 DUE OCTOBER 1 1997 FIRST NATIONAL BANK OF CINCINNATI CINCINNATI IS TRUSTEE HELIX WATER DISTRICT SAN DIEGO COUNTY CALIF WILL REDEEM ON OCT 1 1993 ITS 1975 WATER REVENUE BONDS SERIES A DUE APRIL 1 19942000 AND SERIES B DUE OCT 1 2011 IDAHO FALLS IDAHO WILL REDEEM ON OCT 1 1993 ITS 675 ELECTRIC REVENUE BONDS SERIES 1979 DUE APRIL 1 2019 WEST ONE BANK BOISE IDAHO IS ESCROW AGENT MANASSAS PARK VA WILL REDEEM ON SEPT 23 1993 200000 PRINCIPAL AMOUNT OF ITS 1980 SERIES GENERAL OBLIGATION SCHOOL BONDS 84 DUE MAY 15 1994 AND 85 DUE MAY 15 1995 AND 925000 PRINCIPAL AMOUNT OF ITS PUBLIC IMPROVEMENT BONDS 1983 SERIES 85 DUE 199496 AND 875 DUE 199799 SIGNET TRUST CO RICHMOND VA IS PAYING AGENT MARYLAND WILL REDEEM OCT 1 1993 ITS 52 BRIDGE AND TUNNEL REVENUE BONDS SERIES 1968 DUE OCT 1 2008 SECURITY TRUST CO BALTIMORE IS TRUSTEE MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON SEPT 15 1993 THE FOLLOWING SINGLE FAMILY MORTGAGE PURCHASE BONDS 1982 SERIES A 125 DUE DEC 1 1993 1275 DUE JUNE 1 AND DEC 1 1994 13125 DUE DEC 1 1997 13375 DUE DEC 1 2009 AND DUE JUNE 1 2014 OF ITS 1983 SERIES B 97 DUE DEC 1 1993 985 DUE JUNE 1 AND DEC 1 1994 10 DUE JUNE 1 AND DEC 1 1995 10 DUE DEC 1 1998 10625 DUE DEC 1 2001 AND 1075 DUE JUNE 1 2007 OF ITS 1983 SERIES C 9 DUE DEC 1 1993 92 DUE JUNE 1 AND DEC 1 1994 94 DUE JUNE 1 AND DECEMBER 1 1995 95 DUE JUNE 1 AND DEC 1 1996 96 DUE JUNE 1 AND DEC 1 1997 10 DUE DEC 1 2001 AND 10125 DUE DEC 1 2007 SHAWMUT BANK BOSTON IS TRUSTEE MONROVIA REDEVELOPMENT AGENCY LOS ANGELES WILL REDEEM ON A CONDITIONAL REDEMPTION ON OCT 1 1993 ITS PUBLIC PARKING FACILITY LEASE REVENUE BONDS 1981 ISSUE FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS TRUSTEE QUEBEC PROVINCE CANADA WILL REDEEM ON SEPT 30 1993 ITS 5875 SINKING FUND DEBENTURES DUE MARCH 1 1997 YORK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON OCT 1 1993 ITS 6 POLLUTION CONTROL REVENUE BONDS 1977 SERIES DUE FEB 1 2007 FIRST FIDELITY BANK PHILADELPHIA IS TRUSTEE LOUISVILLE GAS & ELECTRIC CO WILL REDEEM ON OCT 4 1993 ITS 8 1/4 FIRST MORTGAGE BONDS DUE AUG 1 2001 AND WILL REDEEM ON NOV 1 1993 ITS 8 1/2 FIRST MORTGAGE BONDS DUE NOV 1 2006 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE NORTHWESTERN PUBLIC SERVICE CO HURON SD WILL REDEEM ON SEPT 30 1993 THE FOLLOWING FIRST MORTGAGE BONDS 6 1/4 DUE JULY 1 1996 8 DUE AUG 1 2002 AND 88 DUE JUNE 1 2007 CHASE MANHATTAN BANK NEW YORK AND CJ HEINZELMANN ARE TRUSTEES SOUTHERN BELL TELEPHONE & TELEGRAPH CO ATLANTA WILL REDEEM ON SEPT 27 1993 ITS 8 DEBENTURES DUE FEB 15 2014 BARNETT BANK OF JACKSONVILLE FLA IS TRUSTEE 9309070150 930907 WHO'S NEWS DEUTSCHE BANK AG DEUTSCHE BANK AG FRANKFURT SIMON MURRAY WAS NAMED THE BANK'S GROUP CHIEF EXECUTIVE FOR THE ASIANPACIFIC REGION THE POST IS NEWLY CREATED MR MURRAY RESIGNED LAST WEEK AS GROUP MANAGING DIRECTOR OF HONG KONG'S HUTCHISON WHAMPOA LTD WHERE HE HAD WORKED FOR NEARLY NINE YEARS HE WILL TAKE UP HIS NEW POST IN JANUARY MR MURRAY WILL OVERSEE MORE THAN 60 ENTITIES IN 17 ASIANPACIFIC COUNTRIES AND WILL WORK TO EXPAND THE BANK'S BUSINESS IN THE REGION 9309070149 930907 WHO'S NEWS BARRA INC BARRA INC BERKELEY CALIF RICHARD C GRINOLD RESIGNED AS PRESIDENT OF THIS DEVELOPER OF INVESTMENTRELATED TECHNOLOGY AND SOFTWARE ANDREW RUDD THE 43YEAROLD CHIEF EXECUTIVE ASSUMES RESPONSIBILITY FOR ADMINISTRATIVE DUTIES THAT WERE HANDLED BY MR GRINOLD MR GRINOLD 55 WHO REMAINS A DIRECTOR AND RESEARCHER FOR BARRA SAID THE MOVE WAS AMICABLE AND DESIGNED TO FREE HIM TO DEVOTE MORE TIME TO HIS RESEARCH ACTIVITIES 9309070148 930907 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN ROBERT A WOLFE 55 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT FOR THE AMERICAS AT THE COMPANY'S AIRCRAFT ENGINE UNIT PRATT & WHITNEY THE POSITION IS NEW MR WOLFE WILL BE RESPONSIBILE FOR MARKETING AND NEW BUSINESS DEVELOPMENT IN THE AMERICAS HE WAS EXECUTIVE VICE PRESIDENT AT PRATT & WHITNEY'S GOVERNMENT ENGINES AND SPACE PROPULSION UNIT UNITED TECHNOLOGIES MAKES AIRCRAFT ENGINES ELEVATORS AIR CONDITIONERS AND OTHER PRODUCTS 9309070146 930907 DELTA'S AUGUST TRAFFIC FELL 6 ATLANTA DELTA AIR LINES SAID AUGUST TRAFFIC FELL 6 TO 806 BILLION REVENUE PASENGER MILES FROM 857 BILLION A YEAR EARLIER FOR THE EIGHT MONTHS THROUGH AUGUST DELTA SAID TRAFFIC ROSE 19 TO 5512 BILLION REVENUE PASSENGER MILES FROM 5409 BILLION LOAD FACTOR FOR THE PERIOD STAYED RELATIVELY FLAT AT 6198 COMPARED WITH 618 9309070145 930907 WHIRLPOOL'S FINANCIAL SUBSIDIARY BENTON HARBOR MICH AP WHIRLPOOL CORP SAID FRIDAY THAT IT SOLD A 25 STAKE IN ITS FINANCIAL SUBSIDIARY THROUGH A PREFERRED STOCK OFFERING RAISING 75 MILLION TO REDUCE DEBT ABOUT 750000 PREFERRED SHARES OF WHIRLPOOL FINANCIAL CORP WERE SOLD FOR 100 EACH TO INSTITUTIONAL INVESTORS THE OFFERING COMPLETED LAST TUESDAY WASN'T AVAILABLE TO THE PUBLIC IN JANUARY WHIRLPOOL FINANCIAL ANNOUNCED IT WAS MOVING OUT OF AIRCRAFT AND MOST COMMERCIAL LENDING TO CONCENTRATE ON MORE TRADITIONAL LENDING ACTIVITIES 9309070144 930907 BT CUTTING PRICES FOR LINES LONDON BRITISH TELECOMMUNICATIONS PLC SAID IT WAS CUTTING THE PRICE OF INSTALLING ADDITIONAL TELEPHONE LINES BY 35 TO 99 14874 PLUS VALUEADDED TAX FROM 15275 IN JUNE BT REDUCED THE PRICE OF A FIRST NEW LINE TO 99 SO THE LATEST MOVE EXTENDED THAT REDUCTION TO ALL CONNECTIONS THE PRICE CUTS WERE AIMED MOSTLY AT BUSINESS CUSTOMERS AS MOST RESIDENTIAL CUSTOMERS TAKE OVER A LINE THAT IS ALREADY INSTALLED IN THEIR HOUSE OR APARTMENT AND PAY JUST 3130 INCLUDING VALUEADDED TAX 9309070143 930907 MARKETING & MEDIA REED ELSEVIER TO PURCHASE OFFICIAL AIRLINE GUIDES LONDON REED ELSEVIER PLC SAID IT AGREED TO PURCHASE THE ASSETS OF OFFICIAL AIRLINE GUIDES FOR 417 MILLION THE GUIDE TO AIRLINE FLIGHTS HAD BEEN PART OF THE LATE ROBERT MAXWELL'S PUBLISHING EMPIRE THE SALE WHICH WAS EXPECTED SHOULD BE COMPLETED IN A MATTER OF WEEKS THE COMPANY SAID NEGOTIATIONS BETWEEN REED ELSEVIER AND THE ADMINISTRATORS OF MR MAXWELL'S COLLAPSED PUBLISHING BUSINESS MAXWELL COMMUNICATIONS PLC HAD BEEN UNDER WAY SINCE MAY THE ACQUISITION WILL GIVE REED ELSEVIER A SIGNIFICANT PRESENCE IN THE US MARKET FOR TRAVELRELATED PUBLICATIONS REED ELSEVIER ALREADY PUBLISHES ABC WORLD AIRWAYS GUIDE ANOTHER FLIGHT GUIDE WHOSE USERS RESIDE MAINLY OUTSIDE THE US OFFICIAL AIRLINE GUIDES GENERALLY KNOWN AS THE OAG PRODUCES THE DESKTOP FLIGHT GUIDES POCKET FLIGHT GUIDES THE OAG TRAVEL PLANNER AND FLIGHTDISK WHICH PROVIDES FLIGHT SCHEDULES ON COMPUTER DISK OAG ALSO PUBLISHES THE WEEKLY MAGAZINE TRAVELAGE AND FREQUENT FLYER A MONTHLY MAGAZINE OAG REPORTED A PRETAX PROFIT OF 448 MILLION FOR THE YEAR ENDED MARCH 31 ON SALES OF 1295 MILLION OAG WILL BECOME PART OF REED ELSEVIER'S TRAVEL GROUP 9309070142 930907 ANALYSTS CONCLUDE IT'S A GREAT TIME FOR STOCKS ABREAST OF THE MARKET BUT THEY DIFFER OVER PARALLELS WITH PAST ERAS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COULD IT BE DEJAVU ALL OVER AGAIN WANING INFLATION AND PLUNGING INTEREST RATES BOTH THE LOWEST THEY'VE BEEN IN DECADES ARE SENDING STOCK ANALYSTS INTO THE MUSTY ANNALS OF INVESTING TO DETERMINE THE LAST TIME THE ECONOMIC AND MARKET LANDSCAPE LOOKED LIKE THIS A LOOK AT HOW STOCKS PERFORMED THEN SHOULD GIVE THEM SOME CLUES TO WHAT LIES AHEAD ALTHOUGH THEY CAN'T AGREE ON WHICH EARLIER PERIOD IS MOST LIKE TODAY'S SITUATION THEY COME TO THE SAME CONCLUSION IT'S GREAT FOR STOCKS SOME STOCK STRATEGISTS SAY TODAY'S ECONOMIC ENVIRONMENT LOOKS A LOT LIKE THE 1950S WHEN THE ECONOMY GREW AT A RAPID CLIP INITIALLY AND THEN SLOWED OTHERS COMPARE TODAY TO THE EARLY 1960S WHEN INFLATION WAS TAME AND INTEREST RATES WERE LOW AND SOME ARGUE THAT CONDITIONS TODAY LOOK LIKE NOTHING INVESTORS HAVE LIVED THROUGH BEFORE I HAVEN'T REALLY FOUND A COMPARABLE PERIOD DECLARES ELAINE GARZARELLI LEHMAN BROTHERS' STAR STOCK STRATEGIST YOU CAN GO BACK TO THE '50S AND FIND SOME SIMILARITIES BUT NOT OTHERS THEN YOU CAN GO BACK TO THE '60S AND FIND SOME SIMILARITIES BUT NOT OTHERS STILL MS GARZARELLI SUGGESTS THAT A PATTERN MAY BE EMERGING IF SHE'S RIGHT THEN STOCKS WILL PERFORM IN THE 1990S MUCH AS THEY DID IN THE 1960S FULFILLING A PATTERN THAT SHOWS STOCKS IN THE 1980S BEHAVING MUCH AS THEY DID IN THE 1950S DURING THE DECADE OF THE 1950S EARNINGS OF THE STOCKS IN THE STANDARD & POOR'S 500STOCK INDEX GREW A MODEST 43 BUT STOCKS CLIMBED A ROBUST 235 THAT CARRIED THE PRICEEARNINGS RATIO STOCK PRICES DIVIDED BY EARNINGS FROM A LOW OF SEVEN IN THE EARLY PART OF THE DECADE TO 17 AT THE END OF THE 1950S SIMILARLY DURING THE 1980S THE P/E RATIO WENT TO 134 FROM 72 THE OUTSIZED PRICE GAINS AMID SUCH SKIMPY EARNINGS INCREASES IN BOTH PERIODS WERE THE RESULT MOSTLY OF FALLING INTEREST RATES SAYS MS GARZARELLI BUT IN THE 1960S STOCK PRICES GREW AT ABOUT THE SAME PACE THAT EARNINGS ROSE FORTUNATELY FOR INVESTORS IN THE 1960S EARNINGS GROWTH WAS STRONG FUELED BY LOW INTEREST RATES AND ROBUST ECONOMIC GROWTH ALTHOUGH MS GARZARELLI SAYS SHE EXPECTS RELATIVELY HIGH UNEMPLOYMENT AND EXCESS CAPACITY TO HINDER US ECONOMIC GROWTH IN COMING YEARS SHE NEVERTHELESS ANTICIPATES HEALTHY PROFIT AND STOCK PRICE GAINS THE RESULT OF LOW INTEREST RATES AND WIDESPREAD CORPORATE RESTRUCTURINGS SHE'S CALLING FOR PROFITS FROM THE S&P 500 TO GROW 194 THIS YEAR AND 134 NEXT YEAR PAVING THE WAY FOR SIMILAR STOCK GAINS OTHER EXPERTS AGREE THAT FATTER PROFITS LIE AHEAD DESPITE THE HEAVY DEBT LEVELS PLAGUING THE ECONOMY NANCY LAZAR AN ECONOMIST AT ISI GROUP SAYS THE HIGH DEBT LOAD IS A MIXED BLESSING FOR INVESTORS OBVIOUSLY IT'S A MAJOR DRAG ON ECONOMIC ACTIVITY BECAUSE INVESTORS HAMPERED BY ONEROUS DEBT WILL BE LESS EAGER TO SPEND MONEY BUT AS DIMINISHED CONSUMER SPENDING WILL SLOW THE ECONOMY INFLATION WILL STAY SUBDUED LONGER KEEPING INTEREST RATES LOW THE TRANSITION FROM HIGH INFLATION TO LOW INFLATION IS HARD SAYS MS LAZAR BUT AS COMPANIES ADJUST TO LOW INFLATION THE LOW INTEREST RATES COULD CREATE SOME MAGIC HELPING TO LIFT INVESTMENT HELPING TO LIFT GROWTH HELPING TO LIFT EMPLOYMENT AND HELPING TO LIFT PROFITS OTHER ANALYSTS ARE CHEERED BY THE MODEST PACE OF ECONOMIC GROWTH ABBY COHEN STOCK STRATEGIST AT GOLDMAN SACHS SAYS THAT PROFIT GROWTH TYPICALLY PEAKS TWO YEARS AFTER THE END OF A RECESSION BUT 30 MONTHS SINCE THE LAST RECESSION ENDED PROFITS CONTINUE TO ACCELERATE ALTHOUGH THEY STILL ARE FAR FROM THE RAPID PACE OF EARLIER RECOVERIES WHAT THAT MEANS IS PROFITS ARE GOING TO KEEP ON TRUCKING AND THAT WILL ALLOW STOCKS TO POST ABOVEAVERAGE RETURNS OF MORE THAN 10 OVER THE NEXT FEW YEARS SHE SAYS THOUGH MANY ANALYSTS LIKE TO COMPARE TODAY'S ECONOMIC ENVIRONMENT TO THE 1960S SOME SAY THAT INVESTORS NEED TO LOOK BEYOND THE ECONOMY TO THE POLITICAL LANDSCAPE TOO EXCEPT FOR LOW INTEREST RATES THIS PERIOD IS RADICALLY DIFFERENT IN EVERY OTHER WAY SAYS EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE MR YARDENI ARGUES THAT THE MAIN REASON INTEREST RATES ARE STARTING TO DECLINE IN THE US AND ELSEWHERE IS THE END OF THE COLD WAR THE FALL OF THE IRON CURTAIN HE SAYS ESSENTIALLY UNLEASHED A FLOOD OF WORKERS ONCE EMPLOYED IN THE MILITARY SECTOR INTO THE GLOBAL MARKETPLACE IN THE 50S AND 60S WE WERE IN THE MIDST OF A COLD WAR SAYS MR YARDENI THE DIRECTION OF THE INDUSTRIAL ECONOMIES WAS TO HIGHER INFLATION BECAUSE OF THE ENORMOUS AMOUNT OF MILITARY SPENDING BUT TODAY A GLUT OF WORKERS IS CREATING TREMENDOUS DISINFLATIONARY FORCES IN THE GLOBAL LABOR MARKETS AND WE ARE HEADING DOWN THE SLOPE OF INTEREST RATES AND INFLATION SAYS MR YARDENI AS RATES AND INFLATION DECLINE FINANCIAL ASSETS PRINCIPALLY STOCKS WILL JUST BECOME INCREASINGLY VALUED HE MAINTAINS THAT'S AN ARGUMENT THAT JIM MOLTZ CHIEF INVESTMENT STRATEGIST AT CJ LAWRENCE BUYS TOO STILL HE MAINTAINS THERE ARE IMPORTANT SIMILARITIES BETWEEN TODAY AND THE 1962TO1967 PERIOD BACK THEN LIKE TODAY WE HAD LOW INFLATION IMPROVING PRODUCTIVITY AND AN EMPHASIS TOWARD THE INDUSTRIAL SIDE RATHER THAN THE CONSUMER SIDE HE SAYS THESE CONDITIONS HE RECKONS WILL PAVE THE WAY FOR STOCKS TO TURN IN TOTAL ANNUAL RETURNS OF BETWEEN 8 AND 10 NOT THE FATTEST RETURNS EVER BUT A LOT OF BETTER THAN INVESTORS WILL FIND JUST ABOUT ANYWHERE ELSE THOUGH MOST INVESTMENT STRATEGISTS LIMIT THEIR HISTORICAL REMINISCING TO THE POST WORLD WAR II ERA A FEW GO BACK FURTHER JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT FIRST BOSTON LIKENS THE 1990S TO THE LATE 1950S AND 1960S WITH A DASH OF PRE1914 THROWN IN WHY PREWORLD WAR I IF YOU LOOK AT THE WORLD PRE1914 IT WAS A WORLD OF LARGELY CAPITALIST ECONOMIES SAYS MR APPLEGATE WITH THE COLLAPSE OF COMMUNISM NEARLY COMPLETE THE WORLD IS RETURNING TO THAT STATE FREEING UP LABOR AND CAPITAL AROUND THE WORLD AT THE SAME TIME THE GENERALLY WEAK WORLD ECONOMY WILL EXACERBATE THE DEFLATIONARY TRENDS WE ARE STILL IN A PERIOD OF SECULAR DISINFLATION AND THAT'S WHY FINANCIAL ASSETS PARTICULARLY STOCKS CAN DO BETTER THAN THE HISTORICAL AVERAGE SAYS MR APPLEGATE A SHARP RALLY IN THE BOND MARKET HELPED DRIVE STOCK PRICES HIGHER THE DOW JONES INDUSTRIAL AVERAGE GAINED 783 POINTS TO 363393 STANDARD & POOR'S 500STOCK INDEX INCHED UP 004 TO 46134 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 011 TO 25622 VOLUME ON THE BIG BOARD FELL TO 1959 MILLION SHARES FROM 2594 MILLION THURSDAY FOR THE WEEK THE INDUSTRIAL AVERAGE LOST 018 THE S&P 500 ROSE 017 AND THE BIG BOARD COMPOSITE FELL 032 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 078 TO 11389 DISAPPOINTING ECONOMIC NEWS KNOCKED STOCK PRICES LOWER IN EARLY TRADING BUT THE POWERFUL BOND MARKET RALLY REVERSED THE DECLINE THE LABOR DEPARTMENT REPORTED THAT NONFARM EMPLOYMENT FELL BY 42000 INSTEAD OF RISING AN EXPECTED 141000 THE NEWS HELPED SEND THE TREASURY'S BENCHMARK 30YEAR BOND SOARING 1 1/4 POINTS FRIDAY WITH THE YIELD FALLING BELOW 6 TO 594 ADVANCED MICRO DEVICES LOST 2 TO 29 IN HEAVY TRADING OF 41 MILLION SHARES PRUDENTIAL SECURITIES DOWNGRADED THE STOCK TO HOLD FROM BUY AMONG BLUE CHIPS UNITED TECHNOLOGIES WAS OFF 1 3/8 AT 56 UAL FELL 1 1/2 TO 143 AND GENERAL MOTORS LOST 5/8 TO 45 BUT ALUMINUM CO OF AMERICA SHOT UP 1 3/8 TO 74 3/8 JP MORGAN WAS UP 1 3/8 TO 77 1/4 AND EXXON ADDED 1 1/8 TO 65 1/2 MINING AND METAL STOCKS FELL FOR A SECOND DAY PEGASUS GOLD WAS DOWN 1 1/2 TO 21 1/8 NEWMONT MINING 3/4 TO 48 AND AMERICAN BARRICK 1/2 TO 24 COUNTRYWIDE CREDIT INDUSTRIES CLIMBED 1 3/8 TO 30 1/4 THE COMPANY SAID IT FUNDED 48 BILLION IN LOANS LAST MONTH UP 71 FROM 28 BILLION IN AUGUST 1992 COUNTRYWIDE CREDIT ALSO SAID ITS PIPELINE OF LOANS IN PROCESS WAS 9 BILLION AT AUG 31 UP FROM 6 BILLION AT AUG 31 1992 NEWS CORP JUMPED 2 1/2 TO 54 3/4 SHAREHOLDERS APPROVED AN ISSUE OF CONVERTIBLE PREFERENCE SHARES TO HELP FINANCE THE PURCHASE OF A 636 STAKE IN HONG KONG'S STAR TELEVISION THE COMPANY ALSO SAID IT IS DISCUSSING THE SALE OF ITS HALFOWNERSHIP OF THE SOUTH CHINA MORNING POST HOLDINGS LTD THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 029 POINT TO 46157 A NEW HIGH SEE RELATED STORY CREDIT MARKETS RALLY IN BONDS MAY BE DUE FOR A REVERSAL WSJ SEPT 7 1993 DEJA VU ALL OVER AGAIN ANALYSTS LOOK BACKWARD TO GAUGE THE FUTURE S&P 500 PRICET0 CORPORATE S&P 500 EARNINGS CUMULATIVE TIME PERIOD PROFITS RETURN RATIO INFLATION 1950S 43 235 7 TO 17 25 1960S 70 68 168 TO 163 28 1970S 165 19 16 TO 7 99 1980S 69 213 721 TO 1338 59 SOURCE LEHMAN BROTHERS 9309070141 930907 TECHNOLOGY MERCK MEDCO SAY FTC WANTS ADDITIONAL DATA BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL WHITEHOUSE NJ MERCK & CO AND MEDCO CONTAINMENT SERVICES INC SAID THE FEDERAL TRADE COMMISSION REQUESTED ADDITIONAL INFORMATION ON THEIR PROPOSED 6 BILLION MERGER THE TWO COMPANIES SAID THE REQUEST WILL EXTEND THE WAITING PERIOD UNDER THE HARTSCOTTRODINO ANTITRUST LAW UNTIL 20 DAYS AFTER THE COMPANIES PROVIDE THE DATA HOWEVER THE FTC COULD DECIDE TO TERMINATE THE WAITING PERIOD EARLIER MERCK AND MEDCO SAID THEY WILL RESPOND PROMPTLY THEY SAID THEY BELIEVE THE MERGER COMPLIES WITH FEDERAL ANTITRUST LAWS AND THAT THEY EXPECT TO CLOSE IT IN THE FOURTH QUARTER FTC REQUESTS FOR ADDITIONAL INFORMATION ARE ROUTINE AND DON'T NECESSARILY INDICATE ANY IMMINENT ACTION BY THE FTC MERCK THE WORLD'S LARGEST DRUG COMPANY AND MEDCO THE NATION'S LARGEST MARKETER OF DISCOUNT PRESCIPTION MEDICINES REACHED THE MERGER PACT IN JULY THE TRANSACTION WOULD MAKE MERCK BASED IN WHITEHOUSE NJ BY FAR THE BIGGEST AND PERHAPS ONLY INTEGRATED PRODUCER AND DISTRIBUTOR OF PHARMACEUTICALS COMPETITORS HAVE RAISED ANTITRUST CONCERNS SAYING PROBLEMS COULD ARISE FROM HAVING A SINGLE DRUG COMPANY OWN A MAJOR DISTRIBUTOR SOME RIVALS HAVE SAID THEY ARE PARTICULARLY WORRIED THAT MEDCO BASED IN MONTVALE NJ MIGHT FAVOR MERCK PRODUCTS TO THE POINT THAT MEDCO'S CREDIBILITY WITH EMPLOYERS AS A DISCOUNT PROVIDER COULD BE HURT BUT ANTITRUST LAWYERS HAVE SAID THE TRANSACTION MIGHT NOT BE TARGETED BY ANTITRUST ENFORCERS BECAUSE IT IS LIKELY TO INTENSIFY PRICE COMPETITION AMONG DRUG MAKERS SINCE THE 1970S THE GOVERNMENT HAS REFRAINED ALMOST ENTIRELY FROM CHALLENGING PROPOSED VERTICAL MERGERS WHICH BRING TOGETHER SUPPLIER AND BUYER IN CONTRAST HORIZONTAL MERGERS WHICH UNITE COMPETITORS HAVE LED TO SOMEWHAT CLOSER SCRUTINY THE ONLY WAY THE MERCKMEDCO MERGER COULD THREATEN COMPETITION IS IF THE COMBINED COMPANY SO DOMINATES THE MARKET THAT IT IS ABLE TO KEEP OTHER COMPANIES FROM GETTING THEIR DRUGS TO CONSUMERS ANTITRUST SPECIALISTS HAVE SAID BUT THE DRUG INDUSTRY IS PROBABLY FRAGMENTED ENOUGH TO PREVENT THAT NO DRUG COMPANY INCLUDING MERCK HAS MORE THAN 10 OF THE US PRESCRIPTION PHARMACEUTICAL BUSINESS AND MEDCO DISTRIBUTES TO 10 TO 20 OF PRESCRIPTIONDRUG USERS HEMANT SHAH OF HKS & CO WARREN NJ SAID HE ISN'T SURPRISED THAT REGULATORS WANT MORE INFORMATION ABOUT THE PROPOSED MERGER BUT HE DOESN'T EXPECT THE INQUIRY TO SCOTCH THE TRANSACTION QUITE A FEW COMPANIES AND ASSOCIATIONS HAVE LODGED COMPLAINTS THAT THE MERGER COULD BE ANTICOMPETITIVE HE SAID BUT HE SAID HE BELIEVES MERCK AND MEDCO SUBJECTED THEIR AGREEMENT TO VIGOROUS LEGAL REVIEW AND THAT IT WILL WITHSTAND FEDERAL ANTITRUST SCRUTINY 9309070140 930907 LAW LEGAL BEAT ENVIRONMENTAL SENTENCES UPSET SOME LAWYERS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PEOPLE CONVICTED OF ENVIRONMENTAL CRIMES AREN'T JUST GOING TO JAIL ANYMORE SOME ARE ALSO DOING TIME AT THEIR LOCAL SIERRA CLUBS IN THE LAST FEW YEARS JUDGES IN SEVERAL STATES HAVE SENTENCED DEFENDANTS TO SUPPORT ENVIRONMENTAL ADVOCACY GROUPS IN OHIO FOR EXAMPLE A TOTAL OF FIVE BUSINESSMEN HAVE BEEN ORDERED TO BECOME MEMBERS OF THE SIERRA CLUB A CONSERVATION ORGANIZATION COURTS IN MARYLAND AND CALIFORNIA ALSO HAVE REQUIRED DEFENDANTS TO MAKE CASH CONTRIBUTIONS TO ENVIRONMENTAL GROUPS THIS KIND OF CREATIVE SENTENCING IS RAISING THE HACKLES OF SOME LEGAL SPECIALISTS WHO ARGUE THAT ADVOCACYGROUP CRIMINAL SENTENCES ARE AN ABUSE OF JUDICIAL POWER AND MAY INFRINGE DEFENDANTS' CONSTITUTIONAL RIGHTS THEY'RE WORRIED THAT SUCH COMPULSORY SUPPORT FOR ENVIRONMENTAL GROUPS COULD FORESHADOW A SIMILAR EXPANSION OF THE COMMUNITYSERVICE PUNISHMENTS USED IN OTHER CRIMINAL CASES SOME ORGANIZATIONS AND SOME POLITICAL VIEWPOINTS ARE GOING TO GET FAVORED OVER OTHERS AND THEY MAY WELL REFLECT THE JUDGE'S PARTICULAR POLITICAL BELIEFS AND NOT SOCIETY'S AS A WHOLE SAYS GREGORY MAGGS A GEORGE WASHINGTON UNIVERSITY LAW PROFESSOR THE SENTENCES ALSO MAY VIOLATE THE FIRST AMENDMENT BY REQUIRING THE DEFENDANTS TO SUPPORT GROUPS WHOSE VIEWS THEY DON'T SHARE LAWYERS WHO HAVE STUDIED THE ISSUE SAY LAST WEEK A MAGISTRATE JUDGE IN BALTIMORE SENTENCED TWO HUNTERS TO MAKE 50 CONTRIBUTIONS TO THE NATIONAL WILDLIFE FOUNDATION THE HUNTERS DON TRYON AND NED TRYON PLEADED GUILTY TO VIOLATING FEDERAL LAWS ON HUNTING WITH LIVE DECOYS THE TRYONS WHO ARE BROTHERS WERE ALSO REQUIRED TO GIVE UP HUNTING FOR TWO YEARS AND TO PAY 1000 EACH IN FINES THE PROBLEM WITH THE TRYON SENTENCE IS THAT MANY OF THE NATIONAL WILDLIFE FOUNDATION'S POSITIONS AREN'T CONSISTENT WITH THE VIEWS OF HUNTERS ARGUES STEPHEN BOYNTON GENERAL COUNSEL FOR THE CONGRESSIONAL SPORTSMAN'S CAUCUS FOUNDATION A SPORTSMAN'S RIGHTS GROUP THESE CASES ARE COMING VERY CLOSE TO IMPINGING UPON RIGHTS WHICH THE DEFENDANT DOESN'T GIVE UP JUST BECAUSE HE HAS BEEN CONVICTED MR BOYNTON SAYS MOST DEFENDANTS FORCED TO SUPPORT AN ADVOCACY GROUP DON'T CHALLENGE THE SENTENCE THE ALTERNATIVE TYPICALLY IS A LONGER JAIL TERM NOT SURPRISINGLY DEFENDANTS THIK TWICE BEFORE APPEALING SAYS JAMES NEAL A NASHVILLE TENN CRIMINAL DEFENSE LAWYER THE THREAT OF MORE JAIL TIME IS QUITE A HEAVY HAMMER HE ADDS CONVICTED BUSINESS EXECUTIVES MAY BE ESPECIALLY VULNERABLE TO BEING FORCED INTO AN UNCOMFORTABLE ADVOCACY ROLE SENTENCING EXPERTS SAY IN GENERAL JUDGES ARE LOOKING AT THE SENTENCING STAGE AS AN OPPORTUNITY TO USE THE DEFENDANT'S RESOURCES FOR THE SOCIAL GOOD WHEN THE DEFENDANTS ACTUALLY HAVE RESOURCES SAYS PETER ARENELLA A LAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA IN LOS ANGELES COMMUNITY SERVICE HAS BECOME AN INCREASINGLY COMMON PART OF CRIMINAL SENTENCES AS JUDGES SEARCH FOR INNOVATIVE WAYS TO SAVE JAIL SPACE AND REMEDY OTHER SOCIAL PROBLEMS GENERALLY THOSE PUNISHMENTS HAVE INVOLVED WIDELY ESPOUSED CAUSES SUCH AS HELPING DISADVANTAGED CHILDREN BUT ADVOCACYGROUP SENTENCES TAKE COMMUNITY SERVICE BEYOND ITS TRADITIONAL BOUNDARIES IN 1991 FOR EXAMPLE AN OHIO JUDGE ORDERED JOSEPH RAUH THE PRESIDENT OF AN AKRON RUBBERPRODUCTS COMPANY TO SERVE 20 DAYS IN JAIL AND JOIN THE SIERRA CLUB FOR THREE YEARS MR RAUH HAD BEEN CHARGED WITH ILLEGALLY DISPOSING AND TRANSPORTING HAZARDOUS WASTE THE JUDGE ORDERED MR RAUH TO ATTEND EVERY SIERRA CLUB MEETING OR POSSIBLY FACE ADDITIONAL PRISON TIME ACCORDING TO MICHAEL MAROUS WHO HEADS THE OHIO ATTORNEY GENERAL'S ENVIRONMENTALCRIME UNIT MR RAUH SAYS HE DIDN'T THINK IT WAS AN APPROPRIATE SENTENCE BUT THAT HE DIDN'T APPEAL BECAUSE I JUST WANTED TO GET IT OVER WITH AND JUST PROCEED ON WITH MY LIFE MR MAROUS CONCEDES THAT SIERRA CLUB SENTENCES MAY FORCE DEFENDANTS TO AFFILIATE UNWILLINGLY WITH ENVIRONMENTAL ORGANIZATIONS THE SIERRA CLUB WHICH DOESN'T QUALIFY AS A CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE SERVICE RULES LOBBIES AND FILES LAWSUITS ON BEHALF OF ENVIRONMENTAL CAUSES BUT MR MAROUS SAYS PART OF THE REHABILITATION OF THE CRIMINAL INCLUDES AN EDUCATION ON THE SIGNIFICANCE OF WHAT THEY'VE DONE TO THE ENVIRONMENT IF YOU CAN SEND SOMEBODY TO PRISON FOR TWO YEARS SENDING THEM TO A SIERRA CLUB MEETING FOR TWO YEARS SEEMS LIKE LESS OF AN IMPOSITION ON THEIR FREEDOM MR MAROUS ADDS LAST WEEK AN OHIO LEGISLATOR INTRODUCED A BILL THAT WOULD BOLSTER JUDGES' POWERS TO ISSUE CREATIVE SENTENCES FOR BUSINESSPEOPLE CONVICTED OF ENVIRONMENTAL CRIMES EVEN WITHOUT SUCH LEGISLATION ONLY ONE SIERRA CLUB SENTENCE IN OHIO HAS BEEN CHALLENGED LAST YEAR THE WASHINGTON LEGAL FOUNDATION A CONSERVATIVE THINK TANK FILED A COMPLAINT ACCUSING JUDGE THOMAS NURRE OF MISCONDUCT FOR SENTENCING A CINCINNATI BUSINESSMAN TO JOIN THE SIERRA CLUB THE OHIO SUPREME COURT'S DISCIPLINARY BOARD DISMISSED THE COMPLAINT WITHOUT COMMENT AND HOW DOES THE SIERRA CLUB FEEL ABOUT ALL THIS JEROME TINIANOW A SIERRA CLUB VICE PRESIDENT SAYS THE GROUP HASN'T ENCOURAGED THE SENTENCES BUT DOESN'T OBJECT REALISTICALLY THESE MEMBERS AREN'T GOING TO BE ACTIVE PARTICIPANTS IN OUR EFFORTS HE SAYS WHAT GETS SAID AT CLUB MEETINGS MAY GO IN ONE EAR AND OUT THE OTHER A FEDERAL APPEALS COURT THREW OUT 2 MILLION IN PUNITIVE DAMAGES AWARDED TO A WOMAN WHOSE BREAST IMPLANTS RUPTURED THE ATLANTA COURT SAID THAT BECAUSE THE MANUFACTURER OF THE IMPLANTS HEYERSCHULTE CORP HAD ISSUED A WARNING ABOUT THE PRODUCT'S RISKS THEIR CONDUCT WASN'T WANTON ENOUGH TO WARRANT PUNITIVE DAMAGES THE DECISION ALSO SAID THE LOWER COURT JUDGE SHOULDN'T HAVE ALLOWED EVIDENCE TO BE INTRODUCED AT TRIAL ON THE RISKS OF BREAST IMPLANTS FROM A US FOOD AND DRUG ADMINISTRATION REPORT THE REPORT CONTAINED ONLY PRELIMINARY FINDINGS THE TENTATIVE AND SECONDHAND NATURE OF THE FINDINGS IN THE FDA REPORT SHOULD HAVE KEPT IT OUT OF EVIDENCE THE US CIRCUIT COURT OF APPEALS FOR THE 11TH CIRCUIT SAID IN ITS OPINION THIS IS A SOLID OPINION FAVORING RESPONSIBLE MANUFACTURERS WHO PUT OUT WARNINGS SAID PATRICK LAMB A LAWYER WITH KATTEN MUCHIN & ZAVIS IN CHICAGO WHICH REPRESENTED BAXTER HEALTHCARE CORP A DEFENDANT IN THE CASE THE DECISION CAME IN THE CASE OF BRENDA TOOLE AN ATLANTA LIBRARIAN WHO HAD COSMETIC SURGERY IN 1981 AND SUED HEYERSCHULTE AND BAXTER HEALTHCARE AFTER HER IMPLANTS RUPTURED IN 1989 BAXTER HEALTHCARE IS A UNIT OF BAXTER INTERNATIONAL INC WHICH ACQUIRED HEYERSCHULTE'S PARENT AMERICAN HOSPITAL SUPPLY CORP IN 1985 RANDY SMITH A DOTHAN ALA LAWYER WHO REPRESENTED MS TOOLE SAID THE DECISION WASN'T DEVASTATING TO THE PLAINTIFF'S CASE BECAUSE OF ADDITIONAL EVIDENCE ABOUT IMPLANT RISKS THAT HAS EMERGED SINCE THE TRIAL INDEED THE COURT NOTED THAT AFTER THE TRIAL'S CONCLUSION THE FDA RELEASED A FINAL REPORT ON BREAST IMPLANTS MR SMITH SAID HE IS LOOKING FORWARD TO RETRYING THE CASE WITH ALL THOSE DOCUMENTS NOW A FEDERAL JURY IN DOTHAN AWARDED MS TOOLE 5 MILLION IN PUNITIVE DAMAGES AND 400000 IN COMPENSATORY DAMAGES IN 1991 THE TRIAL JUDGE LATER REDUCED THE AWARD TO 2275000 PUNITIVE DAMAGES ARE MEANT TO PUNISH PARTICULARLY EGREGIOUS BEHAVIOR AND DETER SIMILAR ACTS IN THE FUTURE WHO'S NEWS THREE PARTNERS HAVE JOINED THE 70LAWYER BOSTON FIRM GOLDSTEIN & MANELLO FLETCHER H WILEY AND CRAIG R BROWNE WERE FORMERLY PARTNERS AT FITCH WILEY RICHLIN & TOURSE THAT APPROXIMATELY 15LAWYER FIRM WAS RECENTLY LISTED AS ONE OF THE NATION'S TOP BLACK LAW FIRMS IN A SURVEY BY BLACK ENTERPRISE MAGAZINE THE THIRD NEW PARTNER OLIVER C MITCHELL JR PREVIOUSLY PRACTICED ON HIS OWN IN BOSTON AND SPRINGFIELD MASS MR WILEY IS PRESIDENTELECT OF THE BOSTON CHAMBER OF COMMERCE AND SPECIALIZES IN CORPORATE LAW MR BROWNE PRACTICES ENTERTAINMENT AND PERSONAL INJURY LAW AND MR MITCHELL DOES CRIMINAL AND CIVIL TRIAL WORK COLLEGE BOUND MARK A BELNICK A SENIOR PARTNER AT THE NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON HAS BEEN NAMED GENERAL COUNSEL OF CORNELL UNIVERSITY EFFECTIVE NOV 1 MR BELNICK A CORNELL ALUMNUS REPRESENTED MICHAEL MILKEN IN CIVIL LITIGATION AND WAS DEPUTY CHIEF COUNSEL FOR THE US SENATE'S IRAN CONTRA INVESTIGATION 9309070139 930907 GM PROCEEDS WITH PLANT CLOSING DETROIT GENERAL MOTORS CORP SAID THE MICHIGAN SUPREME COURT REFUSED TO HEAR AN APPEAL ON A RULING ALLOWING THE AUTO MAKER TO SHUT ITS YPSILANTI MICH ASSEMBLY PLANT GM SAID IT IS MOVING AHEAD WITH PLANS TO CLOSE THE PLANT AND TO CONSOLIDATE PRODUCTION OF ITS LARGE REARDRIVE CARS AT ITS FACTORY IN ARLINGTON TEXAS GM SAID THE CONSOLIDATION WILL SAVE IT 800 A CAR THE PLANT USED TO BUILD THE CHEVROLET CAPRICE SEDAN AND WAGON AND BUICK ROADMASTER WAGON THE TOWNSHIP'S ATTORNEY COULDN'T BE REACHED FOR COMMENT 9309070138 930907 TECHNOLOGY IBM TO UNVEIL SPECIALIZED PCS IN HIGHEND RANGE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON INTERNATIONAL BUSINESS MACHINES CORP IS SPRUCING UP ITS PERSONAL COMPUTER LINE WITH SPECIALIZED HIGHEND PCS ACCORDING TO THE HEAD OF ITS EUROPEAN PC BUSINESS THE NEW PCS TO BE UNVEILED TODAY INCLUDE NOTEBOOKS WITH TOUGH CARBONFIBER CASES AND OPTIONAL ELECTRONICS TO MAKE THEIR COLOR SCREENS DISPLAY VIDEOCASSETTE OR TVBROADCAST SIGNALS THE NEW THINKPAD 750 MODELS START AT ABOUT 5000 EACH THIS IS THE FIRST OF SEVERAL NEWPRODUCT ANNOUNCEMENTS SLATED FOR THIS MONTH FROM IBM ACCORDING TO GIUSEPPE GIULIANI GENERAL MANAGER OF IBM'S PC BUSINESS IN EUROPE THE MIDDLE EAST AND AFRICA OTHER PRODUCTS TO APPEAR INCLUDE A NEW MULTIMEDIA VIDEOANDSOUND PC FOR HOME USE NEW MODELS INCLUDING THE FIRST IN IBM'S BUDGET PS/VALUEPOINT RANGE BASED ON INTEL CORP'S LATEST HIGHSPEED PENTIUM PROCESSOR AND INITIALLY IN EUROPE ONLY PCS PRELOADED AT THE IBM FACTORY WITH NETWORKING SOFTWARE BY NOVELL INC AND HOMECOMPUTER SOFTWARE PREPARED WITH WALT DISNEY CO'S EURO DISNEY SOME OF THE UNUSUAL PRODUCT FEATURES AMOUNT TO TECHNOLOGICAL FLAGWAVING TO GET ATTENTION IN THE MARKETPLACE OBSERVED SIMON PEARCE HEAD EUROPEAN PCINDUSTRY ANALYST FOR INTERNATIONAL DATA CORP A FRAMINGHAM MASS MARKET RESEARCH FIRM HE DESCRIBED THE RUGGED LIGHTWEIGHT KEVLAR CARBONFIBER CASES ON THE PORTABLE COMPUTERS AS A FEATURE THAT COULD START A TREND IN THE INDUSTRY BUT IN RECESSIONBATTERED EUROPE HE SAID IBM IS JUST FOLLOWING THE EFFORTS OF OTHER PC MAKERS TO TRY TO INCREASE REVENUE BY OFFERING SPECIALIZED PRODUCTS AT HIGHER PRICES MR GIULIANI SAID IBM SHIPPED 33 MORE PCS IN EUROPE IN THE YEAR ENDED JUNE 30 THAN IT DID A YEAR EARLIER ITS EUROPEAN MARKET SHARE ROSE TO 131 OF PCS SHIPPED IN THE SECOND QUARTER UP FROM 114 A YEAR EARLIER ACCORDING TO MARKETRESEARCH FIRM DATAQUEST INC WITHOUT GIVING FIGURES MR GIULIANI CLAIMED IBM'S EUROPEAN PC UNIT MADE A PROFIT IN BOTH THE FIRST AND SECOND QUARTERS THIS YEAR AFTER A LOSS IN LAST YEAR'S FOURTH QUARTER IN AN INTERVIEW GIVING A GLIMPSE OF IBM'S EUROPEAN AND WORLDWIDE PC LINEUP FOR THIS AUTUMN MR GIULIANI REPEATEDLY HIGHLIGHTED UNUSUAL HARDWARE FEATURES OR SPECIALIZED SOFTWARE A SHARP CONTRAST TO IBM'S LAST MAJOR PCPRODUCT REVAMP IN SEPTEMBER 1992 WHEN IT WAS EMPHASIZING A RANGE OF BUDGET PCS FOR HOME AND OFFICE TO COMBAT CUTPRICE MAKERS OF IBMCOMPATIBLE PCS HE SAID IBM ISN'T DEEMPHASIZING THE BUDGET MODELS BUT THAT THE NEW PRODUCTS REFLECT AN IBM MOVE FROM HARDWARE TO SOLUTIONS 9309070137 930907 SPI HOLDING'S CREDIT PACT RICHARDSON TEXAS SPI HOLDING INC SAID IT REACHED AGREEMENT WITH WELLS FARGO BANK FOR 50 MILLION IN REVOLVING CREDIT SUBJECT TO COMPLETION OF THE COMPANY'S PENDING DEBT AND EQUITY PUBLIC OFFERINGS AND APPROVAL OF FINAL LOAN DOCUMENTS SPI THE HOLDING COMPANY FOR SPECTRADYNE INC WHICH PROVIDES PAYPERVIEW ENTERTAINMENT IN HOTELS AND MOTELS SAID THAT IT WILL USE THE NEW FACILITY FOR GENERAL WORKING CAPITAL AND THAT IT EXPECTS TO CLOSE THE TRANSACTION WITHIN 30 DAYS 9309070136 930907 TECHNOLOGY TOSHIBA PLANS A 66 CUT IN JOBS THROUGH ATTRITION TOKYO TOSHIBA CORP SAID IT INTENDS TO CUT ITS WORK FORCE THROUGH ATTRITION BY 66 OR 5000 JOBS OVER THE NEXT SEVERAL YEARS THE COMPANY A MAKER OF COMPUTERS POWER EQUIPMENT SEMICONDUCTORS AND CONSUMER ELECTRONICS SAID ITS DECISION WAS PROMPTED BY PURELY STRATEGIC CONSIDERATIONS NAMELY ITS PLAN TO FOCUS ON PRODUCTS THAT REQUIRE FEW EMPLOYEES TO MAKE BUT ANALYSTS SAID TOSHIBA'S MOVE LOOKED MORE LIKE COSTCUTTING BROUGHT ON BY POOR BUSINESS CONDITIONS IN GENERAL IT'S GOOD IT'S BETTER THAN NOT DOING ANYTHING SAID MAKIO INUI AN ANALYST WITH KLEINWORT BENSON INTERNATIONAL INC IN TOKYO IN TERMS OF WHETHER OR NOT TOSHIBA WILL TAKE A MORE REALISTIC APPROACH TO ITS EXTERNAL ENVIRONMENT THE POOR BUSINESS CLIMATE HOWEVER I REALLY DON'T THINK IT'S GOING TO HAPPEN LIKE ALL OF JAPAN'S MAJOR ELECTRONICS FIRMS TOSHIBA HAS SEEN ITS PROFITS SHRINK ALONG WITH DEMAND FOR ITS MAINSTAY PRODUCTS SUCH AS COMPUTERS AND CONSUMER ELECTRONICS ONLY SALES OF HEAVY POWER EQUIPMENT HAVE REMAINED STRONG THE COMPANY HAS ALSO BEEN HIT BY THE YEN'S NEARLY 20 RISE AGAINST THE DOLLAR SINCE THE START OF THE YEAR TOSHIBA SAID IT HAS NO PLANS FOR EARLY RETIREMENT PROGRAMS OR LAYOFFS TO ACCELERATE THE JOB CUTS 9309070135 930907 US AGENCY CITES MUSEUM AFTER FATALACCIDENT PROBE NEW YORK THE US LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION PROPOSED PENALTIES TOTALING 40600 AGAINST THE FRICK COLLECTION MUSEUM FOLLOWING AN INVESTIGATION INTO THE DEATH OF AN EMPLOYEE THE NEW YORK MUSEUM'S CHIEF ENGINEER THOMAS ZELIC WAS KILLED APRIL 9 WHEN A JAMMED SIDEWALK ELEVATOR HE WAS TRYING TO FREE SUDDENLY MOVED AND CRUSHED HIM OSHA SAID ANOTHER EMPLOYEE ALSO WAS INJURED OSHA CITED THE MUSEUM WITH 17 SERIOUS VIOLATIONS INCLUDING ALLEGEDLY FAILING TO ENSURE SAFETY FEATURES ON ELEVATORS AND NOT PROVIDING AN EYEWASH STATION OSHA ALSO CITED THE MUSEUM FOR OTHERTHANSERIOUS VIOLATIONS INCLUDING ALLEGEDLY FAILING TO REPORT AN EMPLOYEE DEATH WITHIN 48 HOURS A SERIOUS VIOLATION IS A CONDITION THAT COULD LEAD TO THE DEATH OR SERIOUS INJURY OF AN EMPLOYEE OTHERTHANSERIOUS VIOLATIONS PROBABLY WOULDN'T CAUSE SERIOUS HARM BUT WOULD HAVE A DIRECT RELATIONSHIP TO THE SAFETY OF AN EMPLOYEE FRICK OFFICIALS WEREN'T AVAILABLE FOR COMMENT ON FRIDAY THE MUSEUM HAS UNTIL SEPT 10 TO CONTEST THE CITATIONS 9309070134 930907 DUPONT FOUND LIABLE BY JURY IN BENLATE CASE BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JURY IN ARKANSAS FOUND DUPONT CO LIABLE FOR 10650000 IN A LAWSUIT BROUGHT BY 23 PLAINTIFFS WHO ALLEGED THAT DUPONT'S BENLATE FUNGICIDE DAMAGED THEIR CROPS THE VERDICT WAS SEEN BY PLAINTIFFS' ATTORNEYS AS A SETBACK FOR DUPONT AS IT WAS THE FIRST OF MORE THAN 400 BENLATE DAMAGE SUITS AROUND THE COUNTRY TO BE DECIDED BY A JURY ANOTHER TRIAL IS UNDERWAY IN FLORIDA'S BROWARD COUNTY CIRCUIT COURT CONCERNING ALLEGED CROP DAMAGES CAUSED BY DUPONT'S BENLATE LAST MONTH DUPONT SETTLED FOR 4250000 A BENLATE SUIT BROUGHT IN FEDERAL COURT IN GEORGIA BY FOUR GROWERS WHO USED BENLATE ON THEIR ORNAMENTAL PLANT CROPS THE WILMINGTON DEL CHEMICAL COMPANY CLAIMED A VICTORY IN THAT CASE THE FIRST BENLATE CASE TO GO TO TRIAL NOTING THAT THE SETTLEMENT WAS FOR A FRACTION OF THE 430 MILLION IN REAL AND PUNITIVE DAMAGES ALLEGED BY THE PLAINTIFFS DUPONT SAID IT WOULD APPEAL THE ARKANSAS VERDICT WHICH WAS REACHED FRIDAY AFTERNOON AFTER THREE WEEKS OF TESTIMONY DUPONT PULLED ITS BENLATE DF FUNGICIDE OFF THE MARKET IN 1991 AFTER WIDESPREAD CUSTOMER COMPLAINTS IT SUBSEQUENTLY PAID ABOUT 500 MILLION TO SETTLE NEARLY 2000 GROWER CLAIMS OF BENLATE DAMAGE IN 1991 AND 1992 IN THE BIGGEST PESTICIDE RECALL IN HISTORY DUPONT REVERSED COURSE LAST NOVEMBER HALTING ALL CLAIM PAYMENTS AND SAYING TESTS IT CONDUCTED SHOWED BENLATE DIDN'T DAMAGE PLANTS AFTER ALL PLAINTIFFS' ATTORNEY JAMES BRUCE MCMATH OF LITTLE ROCK ARK SAID THIS PRODUCT WAS MISDESIGNED IT WAS IMPROPERLY LABELED IT WAS CONTAMINATED WITH HERBICIDES AND DUPONT SOLD IT KNOWING THAT AND REFUSED TO RECALL THE PRODUCT UNTIL THE EPA FOUND OUT ABOUT IT THE PLAINTIFFS MOSTLY TOMATO GROWERS FROM SOUTHERN ARKANSAS HAD ASKED FOR 9 MILLION IN COMPENSATORY DAMAGES THE VERDICT HANDED DOWN BY THE FEDERAL JURY IN EL DORADO ARK INCLUDED 3 MILLION IN PUNITIVE DAMAGES PLAINTIFFS HADN'T ASKED FOR A SPECIFIC AMOUNT IN PUNITIVE DAMAGES DUPONT MAINTAINED THAT THE VERDICT WILL HAVE A LIMITED EFFECT ON OTHER PENDING BENLATE CASES BECAUSE IT APPLIED ONLY TO BENLATE DF FUNGICIDE CONTAMINATED WITH ATRAZINE HERBICIDE THE BENLATE CONTAMINATED WITH ATRAZINE WAS RECALLED BY THE COMPANY IN 1989 DUPONT SAID THE CONTAMINATION OCCURRED AT A TERRA INTERNATIONAL FACILITY THAT WAS PROCESSING BENLATE TERRA INTERNATIONAL WASN'T A DEFENDANT IN THE ARKANSAS CASE DUPONT SAID IT COULDN'T ELABORATE ON THE ARKANSAS CASE OR ANY ISSUE RELATING TO BENLATE BECAUSE OF AN EXISTING COURT ORDER ISSUED BY THE JUDGE IN THE BROWARD COUNTY CASE IN FLORIDA HANK SHEA AN ATTORNEY FOR TERRA MAINTAINED THAT THE LEVEL OF ATRAZINE IN THE BENLATE USED BY THE ARKANSAS GROWERS WAS SO SMALL ONLY EIGHT PARTS PER MILLION THAT IT COULDN'T HAVE DAMAGED THE TOMATOES OR OTHER PLANTS HE ALSO NOTED THAT THE TRACE AMOUNT OF ATRAZINE IN THE BENLATE FELL WITHIN LIMITS ALLOWED BY DUPONT PRODUCT SPECIFICATIONS 9309070133 930907 INTERNATIONAL YAMAICHI SLATES INVESTOR REFUNDS AS SCANDALS ROCK SECURITIES FIELD BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A RECENT SPATE OF QUESTIONABLE TRANSACTIONS BY JAPAN'S SECURITIES FIRMS COMPOUNDS A CENTRAL PROBLEM FOR THE INDUSTRY REGAINING INVESTOR CONFIDENCE SMALL INVESTORS IN JAPAN WHO FOR YEARS PROVIDED A STEADY STREAM OF COMMISSION INCOME TO BROKERAGE FIRMS REMAIN TURNED OFF STOCKS PARTLY BECAUSE OF INDUSTRY SCANDALS ON FRIDAY INVESTORS RECEIVED NEW REINFORCEMENT FOR THIS AVERSION WHEN YAMAICHI SECURITIES CO SAID IT WILL PAY A REFUND OF ABOUT 10 BILLION YEN 944 MILLION TO PEOPLE WHO HAD BEEN ASSURED OF HIGH RETURNS ON A VOLATILE US MORTGAGEINVESTMENT FUND THAT ENDED UP LOSING MONEY ALSO JAPAN'S SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION A GOVERNMENT WATCHDOG AGENCY URGED PUNITIVE ACTION AGAINST INDIVIDUALS AT 11 JAPANESE SECURITIES FIRMS INCLUDING YAMAICHI ACCORDING TO THE COMMISSION THE FIRMS BOUGHT SHARES IN A JAPANESE COMPUTER COMPANY NIHON UNISYS LTD FOR A JAPANESE STOCK SPECULATOR WHO WAS MANIPULATING THE COMPANY'S SHARE PRICE THE PENALTY WILL BE DETERMINED BY THE MINISTRY OF FINANCE SOMETIME THIS WEEK SECURITIES COMPANIES SUCH AS YAMAICHI JAPAN'S FOURTHBIGGEST BROKERAGE FIRM HAVE TRIED TO MAKE UP FOR THE DISAPPEARANCE OF SMALL INVESTORS FROM THE STOCK MARKET BY JUMPING INTO NEW LINES OF BUSINESS BUT BECAUSE THE COMPANIES HAVE LITTLE EXPERIENCE IN FIELDS OTHER THAN STOCK TRADING THE RESULTS CAN BE DISASTROUS EVEN GIANT NOMURA SECURITIES CO JAPAN'S LARGEST SECURITIES FIRM APPEARS TO HAVE BEEN BURNED ON RISKY DEALINGS LAST NOVEMBER NOMURA DECIDED TO BUY BACK FROM 14000 INVESTORS 336 MILLION IN REALESTATELINKED BONDS BECAUSE NOMURA'S SALESMEN HADN'T FULLY UNDERSTOOD THE RISKINESS OF THE BONDS NOMURA RUSHED TO CORRECT ITS ERROR AS SOON AS COMPANY OFFICIALS REALIZED THE NATURE OF THE INVESTMENT THAT NOMURA HAD SOLD YAMAICHI HOWEVER URGED INVESTORS TO PUT OFF CASHING OUT WHEN THEIR FUND MATURED LAST APRIL THE YAMAICHI SPOKESMAN DECLINED TO SAY HOW LONG YAMAICHI HAD KNOWN ABOUT PROBLEMS WITH THE FUND YAMAICHI'S MORTGAGEINVESTMENT FUND WAS MEANT TO CAPTURE HIGH YIELDS THROUGH THE PURCHASE OF DERIVATIVE SECURITIES WHOSE VALUE WAS BASED ON A STREAM OF INTEREST PAYMENTS ON US MORTGAGES YAMAICHI EXECUTIVES INITIALLY THOUGHT THE INVESTMENT WAS SAFE BUT WHEN INTEREST RATES FELL SHARPLY IN THE US MORTGAGE HOLDERS REFINANCED AT LOWER RATES AFTER THE BIG US MORTGAGE PAYMENTS STOPPED ROLLING IN YAMAICHI'S DERIVATIVES PLUNGED IN VALUE YAMAICHI'S SALESMEN APPARENTLY ASSURED DOMESTIC INVESTORS WHO SANK 290 BILLION YEN INTO THE FUND WHEN IT WAS LAUNCHED IN 1991 THAT THE INVESTMENT WAS SAFE A YAMAICHI SPOKESMAN SAID SOME SALESMEN MAY ALSO HAVE QUOTED THE COMPANY'S INTERNAL PROJECTIONS THAT THE FUND WOULD YIELD AN 8 ANNUAL RETURN THE SPOKESMAN SAID YAMAICHI WOULD REFUND THE FACE VALUE OF 105000 DOMESTIC ACCOUNTS THE COMPANY PLANS TO SELL PART OF ITS STOCKHOLDINGS TO RAISE CASH FOR THE COMPENSATION THIS IS THE END OF THE PROBLEM THE SPOKESMAN SAID WHO ADDED THAT WHILE YAMAICHI IS COMING OFF ITS SECOND CONSECUTIVE UNPROFITABLE YEAR WE'RE GETTING BETTER NOW ANALYSTS SAID YAMAICHI WHICH HAS MORE THAN 60 BILLION YEN IN HIDDEN ASSETS CAN HANDLE ITS COMPENSATION PAYMENT THOUGH THEY ADDED THAT THE SALE OF STOCK WOULD UNDERMINE THE COMPANY'S LEGALLY REQUIRED CAPITALADEQUACY RATIO YAMAICHI WILL SKATE CLOSE TO THE EDGE IN THE REPORTING PERIOD THAT ENDS SEPT 30 SAID ALICIA OGAWA FINANCIAL ANALYST AT SALOMON BROTHERS ASIA LTD SHE PREDICTED THE COMPANY WOULD MEET ITS LEGAL MINIMUM CAPITAL RATIO HOWEVER SEPARATELY SANYO SECURITIES CO SAID MONDAY ITS HONG KONG SUBSIDIARY MANCIPLE LTD IS TRYING TO RECOVER AN 85 BILLIONYEN LOAN MADE TO A TROUBLED LOCAL CLIENT FOR SECURITIES INVESTMENT SANYO IS PAYING INTEREST ON THE DEBT WHILE THE MATTER IS BEING SETTLED SANYO WOULDN'T IDENTIFY THE CLIENT THE LOAN WAS ORIGINALLY EXTENDED TO THE CLIENT BY SANYO SECURITIES ASIA LTD ANOTHER HONG KONG SUBSIDIARY BUT WAS LATER TAKEN OVER BY MANCIPLE A SANYO SPOKESMAN COULDN'T SAY WHEN THE LOAN WAS LIKELY TO BE REPAID 9309070132 930907 BACK TO WORK BY SOL STERN WITH THE LABOR DAY HOLIDAY OVER AND SUMMER UNOFFICIALLY AT A CLOSE MOST AMERICANS RETURN TO THEIR JOBS TODAY BUT WHAT OF LONGTERM WELFARE RECIPIENTS HOW EXACTLY CAN GOVERNMENT PROD THESE PEOPLE ALMOST ALL OF WHOM ARE WOMEN WITH CHILDREN BACK INTO THE LABOR MARKET BACK IN THE 1992 CAMPAIGN BILL CLINTON PROMISED TO END THE WELFARE SYSTEM AS WE KNOW IT AND NOW HIS ADMINISTRATION MUST WRESTLE WITH THE HIGH EXPECTATIONS CREATED BY THAT PLEDGE THE PRESIDENT'S WELFAREREFORM PLANNERS MIGHT FIND A FEW HINTS TO SOLVING THE RIDDLE AT A SMALL PRIVATESECTOR EMPLOYMENT AGENCY CALLED AMERICA WORKS LOCATED IN LOWER MANHATTAN FOR THE PAST FIVE YEARS AMERICA WORKS HAS PLACED THOUSANDS OF WELFARE CLIENTS IN NEW YORK AND CONNECTICUT WITH AN AVERAGE OF BETWEEN FIVE AND SIX YEARS ON THE ROLLS IN PRIVATESECTOR JOBS WITH AN AVERAGE STARTING SALARY OF 15000 PLUS BENEFITS EMPLOYERS HAVE BEEN OVERWHELMINGLY SATISFIED AMERICA WORKS HAS A LONG LIST OF COMPANIES THAT KEEP COMING BACK ASKING FOR MORE REFERRALS FROM THE WELFARE ROLLS AMERICA WORKS HAS STAKED ITS SURVIVAL AS A PROFITABLE BUSINESS ON THE PROPOSITION THAT WELFARE CLIENTS PROPERLY MOTIVATED AND HELPED WITH A LIMITED AMOUNT OF TECHNICAL ASSISTANCE CAN BE SUCCESSFUL AT GETTING AND HOLDING JOBS CONSIDER THE CASE OF 35YEAROLD LENORE GREEN OTHER THAN HAVING TWO SHORTTERM JOBS SHE HAD BEEN ON PUBLIC ASSISTANCE ALL HER ADULT LIFE MS GREEN HAD A DISAPPOINTING EXPERIENCE WITH NEW YORK CITY'S HUMAN RESOURCES ADMINISTRATION THEY BASICALLY GIVE YOU THE YELLOW PAGES AND TELL YOU TO START CALLING TO FIND A JOB SHE SAYS WHEN MS GREEN HEARD ABOUT AMERICA WORKS SHE ASKED HER CASEWORKER TO REFER HER TO THE FIRM EVEN THOUGH ITS OFFICES ARE IN LOWER MANHATTAN AND SHE LIVES IN THE BRONX WHEN SHE MADE THE TRIP SHE FOUND A BUSINESSLIKE FACILITY IN CONTRAST WITH THE GRIM WELFARE OFFICES SHE WAS USED TO VISITING A POLITE RECEPTIONIST DIRECTED CLIENTS AND VISITORS TO THE BUSINESS LAB THE PREEMPLOYMENT CLASSROOM A SMALL MEETING ROOM AND STAFF OFFICES AMERICA WORKS WAS HUMMING WITH ACTIVITY AND NO ONE WAS WAITING IN LINE MS GREEN SIGNED UP AND AFTER A WEEK OF PREEMPLOYMENT SCREENING AND JOB READINESS TRAINING SHE LANDED A TWOWEEK DATAENTRY JOB IMMEDIATELY THEREAFTER SHE WAS SENT ON TWO INTERVIEWS EACH OF WHICH LED TO A JOB OFFER SHE CURRENTLY WORKS IN THE CLAIMS DEPARTMENT OF AMALGAMATED LIFE INSURANCE CO AMERICA WORKS FUNCTIONS AS A KIND OF OLD GIRLS' NETWORK MOST OF ITS CLIENTS ARE WOMEN STAFF MEMBERS BUILD RELATIONSHIPS WITH EMPLOYERS AND PROVIDE THE CONNECTIONS TO THE JOB MARKET THAT WOMEN ON WELFARE USUALLY LACK AFTER SCREENING TO MAKE SURE THERE'S A FIT WITH WHAT THE EMPLOYER IS LOOKING FOR THEY GO OUT AND REPRESENT YOU TO THE EMPLOYER MS GREEN SAYS THEY HELP YOU GET THAT INTERVIEW AMERICA WORKS MAKES ITS MONEY BY CONTRACTING WITH STATE WELFARE AGENCIES TO PLACE CLIENTS IN JOBS THE CONTRACT IS PERFORMANCEBASED THE COMPANY IS PAID ABOUT 4000 A CLIENT IN CONNECTICUT AND 5300 IN NEW YORK ONLY AFTER THE CLIENT HAS COMPLETED A FOURMONTH PROBATIONARY PERIOD WITH AN EMPLOYER THE STATE COMES OUT AHEAD AS WELL FOR ITS FEE OF 5300 AMERICA WORKS ESTIMATES THAT IT SAVES TAXPAYERS 22000 A YEAR THE COST OF KEEPING A MOTHER AND TWO CHILDREN ON THE WELFARE ROLLS IN NEW YORK AMERICA WORKS IS THE BRAINCHILD OF A HUSBANDANDWIFE TEAM PETER COVE AND LEE BOWES MR COVE IS A COMMUNITY ACTIVIST A VETERAN OF THE 1960S WAR ON POVERTY AND VARIOUS NONPROFIT EMPLOYMENT TRAINING PROJECTS MS BOWES IS A SOCIOLOGIST THEY LAUNCHED AMERICA WORKS IN THE MID1980S WITH 1 MILLION IN STARTUP CAPITAL AND THE BELIEF BASED ON THEIR OWN EXPERIENCES IN THE JOBTRAINING FIELD THAT THE PRIMARY OBSTACLES PREVENTING WELFARE CLIENTS FROM FINDING AND RETAINING JOBS ARE A LACK OF CONNECTIONS AND GAPS IN INTERPERSONAL SKILLS EXTENDED EDUCATION AND TRAINING PROGRAMS ARE UNNECESSARY TIMECONSUMING DIVERSIONS MR COVE AND MS BOWES ARGUE FURTHER THEY CONTEND CLIENTS WITH SHAKY SELFCONFIDENCE ARE BEST SERVED BY AN EARLY SUCCESS IN GETTING A JOB NOT BY LONG PERIODS OF PREPARATION AMERICA WORKS' WEEKLONG TRAINING SESSIONS ARE NARROWLY FOCUSED ON THE SKILLS NEEDED TO LAND AN ENTRYLEVEL JOB A COUNSELOR WORKS WITH CLIENTS ON SUCH BASICS AS MAINTAINING A BUSINESSLIKE PERSONAL APPEARANCE SPEAKING PROPERLY PREPARING A RESUME SHOWING UP ON TIME AND ARRANGING CHILD CARE ATTENDANCE IS STRICTLY ENFORCED IF A CLIENT IS LATE TO CLASS EVEN BY FIVE MINUTES SHE IS DROPPED FROM THE PROGRAM THOUGH SHE MAY ENROLL AGAIN AT A LATER DATE AFTER COMPLETING THE CLASS CLIENTS SPEND HALF THEIR DAY IN THE COMPANY'S BUSINESS LAB WORKING ON TYPING WORD PROCESSING AND OTHER OFFICE SKILLS WHILE THEY WAIT FOR JOB INTERVIEWS DURING THE REMAINDER OF THEIR DAY THEY CAN SEEK EMPLOYMENT ON THEIR OWN PAULA PHILLIPS AN ENERGETIC FORMER SCHOOLTEACHER WHO LEADS THE TRAINING SESSIONS STRESSES THAT CLIENTS' SUCCESS DEPENDS ON THEIR OWN MOTIVATION AND EFFORT THERE ARE NO GUARANTEES SHE TELLS HER CLASS OF 46 WOMEN IF YOU WANT SOMETHING TO HAPPEN YOU'VE GOT TO MAKE IT HAPPEN NEVERTHELESS SHE CONTINUES IF WE DON'T FIND PEOPLE A JOB WE CAN'T STAY IN BUSINESS WE WANT TO FIND JOBS FOR AS MANY PEOPLE AS POSSIBLE THE COMPANY'S ENTREPRENEURIAL ETHOS IS CATCHING WE SPOKE WITH NUMEROUS WOMEN AND MEN IN AMERICA WORKS CLASSES WHO DEFIED THE STEREOTYPES OF LONGTERM WELFARE CLIENTS STEEPED IN A PERMANENT CULTURE OF DEPENDENCY AFTER WAITING SEVERAL MONTHS TO BE ADMITTED TO THE PROGRAM THEY UNDERSTOOD THAT THEY HAD TO COMPETE FOR JOBS WERE WORKING VERY HARD AT IMPROVING THEIR SKILLS IN THE BUSINESS LAB AND WERE CONFIDENT THAT THEY WOULD SUCCEED EMPLOYERS ARE IMPRESSED WITH THE WORKERS' ENTHUSIASM THEIR CANDIDATES REALLY WANT TO WORK SAYS THE PERSONNEL DIRECTOR OF A CATALOG COMPANY WHO SINCE 1989 HAS RELIED EXCLUSIVELY ON AMERICA WORKS FOR FILLING ENTRYLEVEL POSITIONS THEY HAVE PEOPLE WHO HAVE BEEN OUT OF WORK AND SO THEY'RE WILLING TO STAY WITH A JOB FOR QUITE SOME TIME SAYS THE MANAGER OF A LAW OFFICE THEY'RE WILLING TO STAY LONGER THAN OTHER PEOPLE WHO HAVEN'T BEEN ON PUBLIC ASSISTANCE WE'RE WILLING TO TAKE A CHANCE ON THEM WE GET A DEDICATED AND LOYAL EMPLOYEE IT'S A WINWIN SITUATION DURING THE FOURMONTH PROBATIONARY PERIOD THE EMPLOYER PAYS AN AGREEDUPON WAGE TO AMERICA WORKS WHICH PAYS THE EMPLOYEE MINIMUM WAGE EMPLOYEES' WELFARE GRANTS ARE GRADUALLY REDUCED DURING THEIR TRANSITION TO PERMANENT WORK THE TRIAL PERIOD ALLOWS THE EMPLOYER TO EVALUATE THE NEW EMPLOYEE'S WORK HABITS AND ADAPTABILITY TO THE COMPANY CULTURE AT THE SAME TIME AMERICA WORKS OFFERS THE EMPLOYEE SERVICES TO EASE THE TRANSITION FROM DEPENDENCY TO THE JOB MARKET AMERICA WORKS JOB COUNSELORS VISIT THE WORKER ON THE JOB EVERY WEEK AND MEET WITH THE EMPLOYEE'S SUPERVISOR EVERY OTHER WEEK TO TROUBLESHOOT IF THERE ARE PROBLEMS WITH PUNCTUALITY OR ATTENDANCE OR IF THE CLIENT NEEDS HELP WITH CHILD CARE OR HOUSING THE COUNSELOR WILL INTERVENE AFTER THE PROBATIONARY PERIOD THE EMPLOYEE IS PAID A STANDARD WAGE THE SUPPORT AMERICA WORKS PROVIDES DURING THE TRANSITION PERIOD IS CLEARLY EFFECTIVE AN ESTIMATED 85 TO 90 OF ITS CLIENTS ARE STILL IN THEIR JOBS AT THE END OF THE FIRST YEAR AMERICA WORKS CONFOUNDS THE SHARED PESSIMISM OF BOTH LIBERALS AND CONSERVATIVES ABOUT THE POSSIBILITY OF GETTING WELFARE RECIPIENTS INTO JOBS QUICKLY IT POINTS BEYOND THE FAMILIAR WON'T WORK VS CAN'T WORK ARGUMENT TOWARD PRAGMATIC INTERMEDIATE SOLUTIONS THERE ARE THOUSANDS OF WELFARE RECIPIENTS WHO DESERVE A BETTER CHANCE THAN THE ONE THE WELFARE BUREAUCRACY NOW AFFORDS MR STERN IS A POLICY ADVISER TO NEW YORK'S CITY COUNCIL PRESIDENT JAN ROSENBERG PROFESSOR OF SOCIOLOGY AT LONG ISLAND UNIVERSITY COLLABORATED ON THIS ARTICLE WHICH IS ADAPTED FROM THE SUMMER ISSUE OF THE MANHATTAN INSTITUTE'S CITY JOURNAL 9309070131 930907 FERROFLUIDICS CORP SAYS IT OVERSTATED RESULTS FOR THREE 1993 FISCAL QUARTERS BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL NASHUA NH FERROFLUIDICS CORP UNDER INVESTIGATION BY REGULATORS FOR ALLEGEDLY VIOLATING SECURITIES LAWS SAID IT OVERSTATED RESULTS IN EACH OF ITS THREE 1993 FISCAL QUARTERS THE COMPANY SAID IT PLANS TO RESTATE ABOUT 2 MILLION IN OPERATING PROFIT AND 11 MILLION IN REVENUE FOR ALL THREE QUARTERS CAUSING AN ADVERSE EFFECT ON RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30 THE GLOOMY FORECAST BY THE MAKER OF MAGNETIC FLUIDS FOLLOWS A DECISION BY ITS BOARD OF DIRECTORS LAST WEEK TO CALL A SPECIAL MEETING TO REMOVE RONALD MOSKOWITZ AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE ON GROUNDS THAT HE ALLEGEDLY VIOLATED SECURITIES LAWS AND TOOK ACTIONS WITHOUT BOARD APPROVAL MR MOSKOWITZ A FOUNDER OF THE COMPANY HAS DENIED THE ALLEGATIONS THROUGH HIS ATTORNEY FERROFLUIDICS SAID IT OVERSTATED ITS OPERATING PROFIT FOR THE NINE MONTHS ENDED MARCH 31 BY ABOUT 15 MILLION BECAUSE IT UNDERSTATED THE COST OF PRODUCING CRYSTALS IN ITS CRYSTALGROWING SYSTEM DIVISION THE DIVISION MAKES SILICON CRYSTALS FROM MOLTEN POLYSILICON FOR USE IN SEMICONDUCTOR CHIPS FERROFLUIDICS REPORTED OPERATING PROFIT OF 3 MILLION FOR THE NINE MONTHS NET INCOME WAS 32 MILLION OR 60 CENTS A SHARE AFTER A 410000 EXTRAORDINARY CREDIT FOR A TAX LOSS CARRYFORWARD REVENUE WAS 254 MILLION FERROFLUIDICS SAID IT ALSO MISTAKENLY RECORDED ABOUT 11 MILLION IN REVENUE FOR CERTAIN SHIPMENTS TO AN AFFILIATE DURING THE NINE MONTHS THE COMPANY SAID THE REVENUE SHOULD HAVE BEEN ACCOUNTED FOR AS INVENTORY CONSIGNED TO THAT AFFILIATE FOR FUTURE SALE THE COMPANY RECORDED ABOUT 470000 IN OPERATING PROFIT IN THE NINE MONTHS FOR THE TRANSACTION FERROFLUIDICS SAID IT'S ALSO EXAMINING CERTAIN OTHER ISOLATED TRANSACTIONS WHICH IT DECLINED TO IDENTIFY THE COMPANY SAID IT ISN'T KNOWN WHETHER THESE UNNAMED TRANSACTIONS WILL REQUIRE FURTHER ACCOUNTING ADJUSTMENTS RICHARD GROBERG FERROFLUIDICS' TREASURER SAID THAT THE RESTATEMENTS ARE A TOTALLY ISOLATED INCIDENT THAT ARE VERY UNFORTUNATELY TIMED HE SAID THEY AREN'T RELATED TO A CURRENT SECURITIES AND EXCHANGE COMMISSION INVESTIGATION OF WHETHER FERROFLUIDICS OR UNNAMED INVESTORS VIOLATED SECURITIES LAWS OR IMPROPERLY PAID A BROKERAGE FIRM AND AN ANALYST TO PRODUCE A REPORT ON THE COMPANY THE ACCOUNTING PROBLEMS WERE DISCOVERED BY COMPANY OFFICIALS IN THE PROCESS OF PERFORMING YEAREND AUDITING HE SAID MR GROBERG DECLINED TO STATE WHETHER THE ACCOUNTING PROBLEMS WERE VIEWED AS AN UNINTENTIONAL ERROR OR MIGHT BE THE SUBJECT OF DISCIPLINARY ACTION GIVEN ALL THE OTHER THINGS GOING ON I CAN'T ANSWER THAT QUESTION MR GROBERG SAID 9309070130 930907 MAZDA WITH SLOW US SALES IS HOLDING SOME '94 BASE PRICES AT CURRENT LEVELS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WITH ITS US SALES STALLED MAZDA MOTOR CORP SAID THAT THE BASE PRICE OF CERTAIN 1994MODEL SEDANS WON'T CHANGE FROM THE CURRENT LEVEL AND THAT MOST OTHER NEW MODELS WILL BE PRICED JUST 18 TO 44 HIGHER MAZDA LIKE ALL OTHER JAPANESE AUTO MAKERS IS UNDER PRESSURE TO BOOST PRICES BECAUSE OF THE YEN'S SHARP RISE AGAINST THE DOLLAR JAPANESE MANUFACTURERS ARE ALSO UNDER PRESSURE TO RAISE PRICES SUBSTANTIALLY OR POSSIBLY FACE CHARGES BY DETROIT'S BIG THREE OF DUMPING VEHICLES IN THE US AT UNFAIRLY LOW PRICES TOYOTA MOTOR CORP SAID LAST WEEK IT WILL INCREASE LIST PRICES ON ITS MOST POPULAR CAMRY MODELS BETWEEN 58 AND 118 MAZDA'S RESTRAINED PRICE INCREASES PROBABLY WON'T DO MUCH TO PLACATE GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP WHILE MAZDA LIFTED PRICES SUBSTANTIALLY ON THE TOPOFTHE LINE 626 MIDSIZE SEDAN AND MX6 SPORTS COUPE ITS OTHER MODELS EITHER SAW NO INCREASE OR ROSE IN PRICE BETWEEN 200 AND 1100 THIS PRICING STRATEGY WILL MAINTAIN MAZDA'S COMPETITIVENESS IN THE MARKETPLACE SAID MAZDA SPOKESMAN FRED AIKINS WE'RE TAKING STEPS TO CUT COSTS IN MANY AREAS TO OFFSET THE CURRENCY SITUATION THE 626 AND MX6 MODELS ARE BUILT AT MAZDA AND FORD'S JOINT VENTURE ASSEMBLY PLANT IN FLAT ROCK MICH THE AUTO MAKER SAID THE INCREASES ON THOSE CARS WERE STEEP BECAUSE OF THE ADDITION OF STANDARD EQUIPMENT SUCH AS LEATHER SEATS AND ANTILOCK BRAKES ON THE 626 AND AIR CONDITIONING AND A POWER SUN ROOF ON THE MX6 MAZDA SAID ITS AVERAGE 1994 PRICE INCREASE WOULD ONLY BE 4 ON A COMPARABLY EQUIPPED BASIS WHICH ADDS TO THE 1993 PRICES THE COST OF EQUIPMENT THAT HAS BEEN MADE STANDARD ON 1994 MODELS FOR EXAMPLE MOST MAZDA MODELS INCLUDING THE 626 AND MX6 COUPE NOW COME EQUIPPED WITH DUAL AIRBAGS MAZDA'S BIGGEST INCREASE CAME ON THE TOPOFTHELINE 626 SEDAN WHICH NOW STARTS AT 21545 UP 2550 FROM 18995 THE BASE PRICES OF THE LEAST EXPENSIVE VERSIONS OF THE 626 THE DX AND LX ARE UNCHANGED AT 14255 AND 16540 THE MAZDA PROTEGE NOW HAS A STARTING PRICE OF 11295 UP 18 FROM 11095 THE BASE PRICE OF THE MPV MINIVAN IS NOW 17795 A 37 INCREASE FROM 17155 MAZDA HAS BEEN STRUGGLING RECENTLY TO REGAIN ITS FOOTING IN THE US MARKET ITS US SALES ARE OFF 39 THIS YEAR THROUGH AUG 31 TO 227294 VEHICLES IN A SHAKE UP AIMED AT TURNING AROUND THE COMPANY MAZDA DISMISSED ITS HIGHESTRANKING AMERICAN EXECUTIVE LAST MONTH ALONG WITH FOUR OTHER TOP EXECUTIVES THE AUTO MAKER ALSO SLASHED ITS US SALES AND MARKETING WORK FORCE BY 10 OR 175 JOBS IN FEBRUARY MAZDA LAID OFF 200 WORKERS STILL ANALYSTS SAY MAZDA HAS A LONG WAY TO GO BEFORE IT BREAKS OUT OF THE SECOND TIER OF JAPANESE AUTO MAKERS IN THE US POPULATED BY MITSUBISHI SUBARU ISUZU AND SUZUKI AND JOINS THE RANKS OF AUTOMOTIVE POWERHOUSES TOYOTA HONDA AND NISSAN 9309070129 930907 AFLCIO WILL BUY SECURITIES TO INVEST IN HOUSING IN 30 CITIES HOMESTEAD FLA THE AFLCIO SAID IT WILL PURCHASE 660 MILLION IN FANNIE MAE AND FREDDIE MAC SECURITIES AS PART OF A 12 BILLION JOINT LABORGOVERNMENT PROGRAM FOR INVESTING IN HOUSING THE EFFORT DUBBED THE NATIONAL PARTNERSHIP FOR COMMUNITY INVESTMENT WAS FORMALLY ANNOUNCED YESTERDAY DURING PRESIDENT CLINTON'S TOUR OF SOUTH FLORIDA COMMUNITIES THAT WERE DEVASTATED BY HURRICANE ANDREW A YEAR AGO THE AFLCIO SAID IT WILL APPLY 20 OF ITS AID TO AREAS DAMAGED IN NATURAL DISASTERS PART OF ITS INVESTMENT IS NOW BEING USED TO REBUILD 102 APARTMENTS IN A SOUTH FLORIDA NEIGHBORHOOD WHERE MR CLINTON TOUTED THE PROGRAM AS PART OF THE ADMINISTRATION'S LABOR DAY MESSAGE THIS IS THE KIND OF THING THAT WE OUGHT TO BE DOING TOGETHER THE PRESIDENT DECLARED THE GOVERNMENT CAN GUARANTEE THE SECURITY OF THE PENSION FUNDS THE UNIONS CAN PUT UP THOSE PENSION FUNDS TO INVEST IN HOUSES IN POSSIBLE DEFERENCE TO THE ATTENDEES WEARING AFLCIO TSHIRTS AND BASEBALL CAPS THE PRESIDENT DIDN'T MENTION THE NORTH AMERICAN FREE TRADE AGREEMENT SAYING ONLY THAT THE US HAS TO OPEN NEW AVENUES OF TRADE TO BE THE NATION WE OUGHT TO BE THE REMAINING 550 MILLION OF THE 12 BILLION PROGRAM WILL COME FROM PUBLIC AND PRIVATE SOURCES SOME OF WHICH ARE ALREADY WITHIN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 9309070128 930907 OTC FOCUS HEEDING HISTORY SOME AVOID SMALL STOCKS IN AUTUMN BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL IN EARLY AUTUMN SMALL STOCKS USUALLY ER AH FALL AT LEAST THAT'S WHAT HISTORY SHOWS IT DOESN'T MATTER HOW SMALL STOCKS' PERFORMANCE IS MEASURED WHAT NATIONALITY THEY ARE OR WHETHER ONE EXCLUDES THE MARKET CRASH OF OCTOBER 1987 A PARTICULARLY GRIEVOUS TIME FOR THESE SHARES HOWEVER YOU SLICE THE DATA SMALL STOCKS TEND TO LOSE GROUND IN SEPTEMBER AND OCTOBER HISTORY MAY NOT REPEAT ITSELF THIS YEAR OF COURSE BUT SOME INVESTORS AREN'T TAKING ANY CHANCES THEY ARE DELAYING NEW COMMITMENTS OF CAPITAL TO SMALL STOCKS UNTIL LATER IN THE YEAR FOR INSTANCE FIRST QUADRANT CORP A MONEY MANAGER THAT SHIFTS FUNDS BETWEEN SMALL AND LARGE STOCKS BASED ON WHICH GROUP LOOKS BEST PLANS TO CURB NEW ALLOCATIONS TO SMALL STOCKS THIS AUTUMN THAT'S DESPITE ITS BELIEF SMALL STOCKS ARE MORE APPEALING THAN LARGE ONES IN THE LONGER TERM SMALL STOCKS UNDERPERFORM LARGE STOCKS DURING OCTOBER ABOUT 60 OF THE TIME SAYS JOHN DORIAN A MANAGING DIRECTOR AT THE FIRM THAT INFLUENCES OUR REBALANCING GOING INTO THAT TIME OF YEAR SMALL STOCKS' AUTUMN WEAKNESS IS THE FLIP SIDE OF ANOTHER CALENDAR ANOMALY KNOWN AS THE JANUARY EFFECT WHICH REFERS TO THE TENDENCY FOR SMALL SHARES TO RACK UP THEIR BIGGEST GAINS AROUND THE TURN OF THE YEAR THERE'S DEFINITELY A TENDENCY FOR SMALL STOCKS TO DO WORSE IN THE FALL SAYS MARC REINGANUM A FINANCE PROFESSOR AT THE UNIVERSITY OF IOWA WHO HELPED INTRODUCE THE NOTION THAT SMALL STOCKS MIGHT HAVE SPECIAL PERFORMANCE TRAITS I NOTICED THIS WHEN I FIRST STARTED DOING RESEARCH ON SMALL STOCKS IN THE LATE 1970S BUT IT HASN'T RECEIVED AS MUCH ATTENTION AS THE JANUARY EFFECT BECAUSE IT'S NOT AS PRONOUNCED HE SAYS NOBODY REALLY KNOWS WHAT CAUSES IT EITHER ONE THEORY IS THAT AUTUMN TENDS TO COINCIDE WITH A FLOOD OF NEWLY ISSUED SHARES WHICH OVERWHELMS INVESTOR DEMAND AND DEPRESSES PRICES BUT THE FACTS DON'T SUPPORT THAT VIEW THERE JUST AREN'T ANY STRONG SEASONAL PATTERNS IN ISSUANCE THAT SHOW UP SAYS JAY RITTER A FINANCE PROFESSOR AT THE UNIVERSITY OF ILLINOIS ANOTHER HYPOTHESIS INVOLVES WINDOW DRESSING BY MONEY MANAGERS THE IDEA IS THAT MONEY MANAGERS GET NERVOUS IN ANTICIPATION OF THEIR YEAREND PERFORMANCE REVIEWS SO THEY TRY TO SPRUCE UP THEIR PORTFOLIOS BY DUMPING SMALL NONAME STOCKS AND REPLACING THEM WITH LARGER MORE POPULAR SHARES THERE'S NO STATISTICAL PROOF THAT THIS IS THE CAUSE BUT I DO THINK IT'S WORTH CONSIDERING MR DORIAN SAYS ANOTHER CONJECTURE IS TAXRELATED SELLING IN PARTICULAR THE 1986 TAX LAW IMPOSED AN OCTOBER DEADLINE ON MOST MUTUAL FUNDS TO REALIZE CAPITAL GAINS AND LOSSES UNLESS A FUND'S REALIZED GAINS ARE OFFSET WITH LOSSES REALIZED BY OCT 31 THE FUND'S SHAREHOLDERS COULD GET A BIG TAXABLE DISTRIBUTION AT YEAR END SELLING LOSERS TO MINIMIZE THE TAX HIT WOULD TEND TO AFFECT SMALL SHARES MOST THAT'S NOT ONLY BECAUSE PRICE DECLINES SHRINK THE MARKET CAPITALIZATION OF LOSING STOCKS PUTTING MANY OF THEM INTO THE SMALL CATEGORY BUT ALSO BECAUSE MUTUAL FUNDS TEND TO OWN MORE SMALL STOCKS IN THE FIRST PLACE THAT TAXLOSS SELLING COULD DEPRESS SMALL STOCKS SAYS MR DORIAN IT WOULDN'T TAKE A LOT OF SUCH TRADING TO CAUSE THIS CALENDAR EFFECT HE NOTES TURNOVER OF JUST 1 OF A COMPANY'S TOTAL OUTSTANDING SHARES COULD CAUSE UNUSUAL PRICE ACTION FOR THAT PARTICULAR MONTH BUT WHILE THE 1986 TAXLAW CHANGES MIGHT HELP EXPLAIN THE BIG AUTUMN SWOONS OF RECENT YEARS THEY DON'T EXPLAIN WHY SUCH SEASONAL WEAKNESS HAS PERSISTED DOWN THROUGH THE DECADES NOR WHY IT SHOWS UP IN OTHER STOCK MARKETS WORLDWIDE SEVERAL STUDIES WHICH USE VARIOUS MEASURES OF SMALL STOCKS AND COVER DIFFERENT TIME PERIODS TURN UP THE SAME TREND IN SEPTEMBER SMALL STOCKS USUALLY LOSE MONEY IN ABSOLUTE TERMS BUT DO MARGINALLY BETTER THAN LARGE STOCKS IN OCTOBER THEY TYPICALLY DO BADLY BOTH IN ABSOLUTE TERMS AND RELATIVE TO LARGE STOCKS OCTOBER IS THE SCARIEST MONTH TO BE IN THE MARKET ESPECIALLY FOR SMALL STOCKS SAYS MR REINGANUM OVER THE PAST 67 YEARS FOR INSTANCE SMALL STOCKS LOST AN AVERAGE 135 IN OCTOBER INCLUDING PRICE CHANGE PLUS DIVIDENDS WHILE LARGE STOCKS WERE ABOUT UNCHANGED HE FINDS EXCLUDING THE MARKET CRASH OF OCTOBER 1987 DOESN'T CHANGE THE RESULTS VERY MUCH SMALL STOCKS STILL LOSE AN AVERAGE OF ABOUT 1 WHILE LARGE STOCKS END UP GAINING 023 OCTOBER 1987 DOESN'T DRIVE THIS PATTERN HE SAYS SMALL BY MR REINGANUM'S DEFINITION INCLUDES STOCKS WHOSE MARKET CAPITALIZATIONS FALL IN THE BOTTOM ONETENTH OF ALL STOCKS LISTED ON THE NEW YORK STOCK EXCHANGE MEANWHILE THE NASDAQ COMPOSITE INDEX FELL DURING AUTUMN IN 13 OF THE 22 YEARS FROM 1971 THROUGH 1992 LOSING AN AVERAGE 126 IN SEPTEMBER AND 092 IN OCTOBER ACCORDING TO BIRINYI ASSOCIATES INC ANOTHER STUDY BY CLAUDIA MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES FINDS THAT IN THE 192692 PERIOD SEPTEMBER AND OCTOBER WERE THE ONLY MONTHS WHEN SMALL STOCKS LOST MONEY MORE THAN 50 OF THE TIME HER WORK WHICH FOCUSES ON THE SMALLEST 50 OF ALL US COMMON STOCKS SHOWS RECENT AUTUMNS TO BE ESPECIALLY BRUTAL FOR SMALL ISSUES IN THE PAST 10 YEARS OCTOBER SLASHED 363 FROM SMALL STOCKS' RETURNS WHILE SEPTEMBER TOOK ANOTHER 169 SMALLSTOCK RALLIES DON'T INSULATE AGAINST AUTUMN ANGST EITHER EVEN DURING A MULTIYEAR SMALLCAP CYCLE OF OUTPERFORMANCE SEPTEMBER AND OCTOBER ARE DOWN MONTHS ON AVERAGE IN BOTH ABSOLUTE AND RELATIVE TERMS MS MOTT SAYS NO MATTER HOW WE SLICE THE DATA BEING OUT OF THE MARKET IN SEPTEMBER AND OCTOBER OR HEDGED AGAINST A DECLINE SEEMS TO BE A SOUND STRATEGY INVESTORS IN US STOCKS AREN'T THE ONLY ONES AT RISK WHAT'S INTERESTING IS THAT THIS AUTUMN STOCKMARKET WEAKNESS SHOWS UP IN A LOT OF DIFFERENT COUNTRIES SAYS DONALD KEIM A FINANCE PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL NINE SEPARATE ACADEMIC STUDIES OF 15 INTERNATIONAL MARKETS SHOW 13 OF THEM ON AVERAGE EXPERIENCE LOSSES IN SEPTEMBER WHILE EIGHT LOSE GROUND IN OCTOBER HE SAYS NO OTHER MONTHS SHOW SUCH CONSISTENT LOSSES WORLDWIDE ACCORDING TO HIS SURVEY NASDAQ OVERTHECOUNTER STOCKS HIT A FIFTH STRAIGHT HIGH IN THIN PREHOLIDAY TRADING THE NASDAQ COMPOSITE INDEX ROSE 106 POINTS TO 74971 FOR THE WEEK THE INDEX GAINED 1564 OR 21 THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION COMPANIES ROSE 061 POINT FRIDAY TO A RECORD 24868 THOUGH MANY INVESTORS INITIALLY TOOK PROFITS OR AVOIDED TRADING ALTOGETHER PRICES FIRMED LATER IN THE DAY YOU HAD SOME PEOPLE BOTTOMFISHING FOR VALUES SAID PAT CONROY SENIOR NASDAQ TRADER AT KIDDER PEABODY ST JUDE MEDICAL SLUMPED 2 TO 29 1/2 ON SEVEN TIMES NORMAL VOLUME OPPENHEIMER ANALYST GLENN REICIN SAID HE EXPECTS INCREASED COMPETITION FOR ST JUDE'S HEART VALVES BY YEAR END AND COMPETITOR CARBOMEDICS' VALVE REACHING THE US MARKET BY THEN INVITRO INTERNATIONAL FELL 1 3/4 TO 12 7/8 ON SEVEN TIMES NORMAL VOLUME AFTER CNBC COMMENTATOR DAN DORFMAN REPORTED A SHORTSELLER'S NEGATIVE COMMENTS ON THE STOCK IN THE SAME REPORT THE COMPANY SAID IT HAS GOOD PROSPECTS AND MENTIONED MAJOR CLIENTS SUCH AS EXXON CORP ARTIFICIALFLOWER MAKER CELEBRITY FELL 1 5/8 TO 5 1/8 AFTER ANNOUNCING IT EXPECTS TO REPORT LOWER NET INCOME FOR ITS FOURTH QUARTER AND FISCAL 1993 VLSI TECHNOLOGY JUMPED 1 1/8 TO 16 3/8 SALOMON BROTHERS INITIATED COVERAGE WITH A BUY RATING SAYING THE COMPANY REPRESENTS A TURNAROUND SEMICONDUCTOR THEME THE BROKERAGE FIRM EXPECTS THE COMPANY TO EARN 36 CENTS A SHARE IN 1993 IT HAD A LOSS OF 112 A SHARE IN 1992 MERGER NEWS MOVED OTHER STOCKS DIAL PAGE ROSE 3 3/4 TO 40 AFTER ANNOUNCING IT HAD AGREED TO MERGE WITH TRANSIT COMMUNICATIONS AND ADVANCED MOBILECOMM OF NORTH CAROLINA TO FORM DIAL PAGE INC CAMI'Z LOST 1 1/8 TO 7 1/4 AFTER IT SAID ITS PROPOSED MERGER WITH CHAUVIN INTERNATIONAL LTD THE PARENT OF BUM EQUIPMENT WILL BE DELAYED UNTIL SPRING 1994 ELSEWHERE ON NASDAQ AVONDALE INDUSTRIES SURGED 2 5/8 TO 7 1/8 AFTER IT SAID IT WAS AWARDED A 262 MILLION CONTRACT FOR CONSTRUCTION OF ONE STRATEGIC SEALIFT SHIP WITH OPTIONS FOR FIVE ADDITIONAL SHIPS 9309070127 930907 BUSINESS BRIEF PIONEER HIBRED ADDS RESERVES TO COVER EXPECTED LOSSES IN AFRICA MIDDLE EAST DES MOINES IOWA PIONEER HIBRED INTERNATIONAL INC BOOSTED RESERVES TO COVER MORE ANTICIPATED LOSSES ON SOURED OPERATIONS IN AFRICA AND THE MIDDLE EAST THE WORLD'S LARGEST SEEDCORN COMPANY SAID IT WOULD ADD 15 MILLION TO PREVIOUSLY ANNOUNCED 36 MILLION IN RESERVES REDUCING EXPECTED FISCAL 1993 EARNINGS BY ANOTHER 10 CENTS A SHARE MOREOVER PIONEER CHAIRMAN AND PRESIDENT THOMAS N URBAN CAUTIONED THAT THE COMPANY WASN'T RULING OUT FURTHER WRITEDOWNS FOR DISAPPOINTING OPERATIONS IN EGYPT AND THE REST OF AFRICA WHERE WE STILL HAVE SUBSTANTIAL ASSETS BUT WHERE THERE ARE RISKS MR URBAN SAID PIONEER'S RESULTS WILL INCLUDE ONETIME CHARGES AND NONRECURRING INCOME LIKELY TO NET OUT TO ABOUT 40 MILLION OR 27 CENTS A SHARE EXCLUDING EFFECTS OF A ONETIME ACCOUNTING CHANGE NEWS OF THE ADDITIONAL RESERVES INITIALLY CUT 2 FROM THE PRICE OF PIONEER SHARES LAST FRIDAY BUT THE STOCK CLOSED UP 75 CENTS AT 34 A SHARE IN NATIONAL MARKET OVERTHECOUNTER TRADING THE LATEST RESERVES PRIMARILY COVER THE WRITEDOWN OF AN INVESTMENT IN A SUNFLOWER OILPROCESSING FACILITY IN EGYPT FROM WHICH PIONEER INTENDS TO WITHDRAW WE HAD HIGHER HOPES FOR THE AREA THAN IT WAS ABLE TO SUSTAIN A SPOKESMAN SAID WE'RE A LONGTERM COMPANY IT TAKES US SEVEN TO 10 YEARS TO DEVELOP A NEW CORN HYBRID BUT SOME OF THE INVESTMENTS WE MADE IN AFRICA ARE JUST TOO LONGTERM TO BE VIABLE FOR SHAREHOLDERS AND THE COMPANY ITSELF IN JUNE THE COMPANY ESTABLISHED 36 MILLION IN RESERVES TO COVER LOSSES FROM THE WRITEDOWN OF SOME UNDISCLOSED INVENTORY AND ACCOUNTS RECEIVABLE AND SHUTTERED OPERATIONS THE COMPANY PLANS TO REPORT YEAREND RESULTS OCT 22 IN FISCAL 1992 PIONEER EARNED 1522 MILLION OR 168 A SHARE ON SALES OF 12 BILLION SECURITIES ANALYSTS TOOK THE LATEST WRITEDOWNS IN STRIDE GEORGE DAHLMAN OF PIPER JAFFRAY INC IN MINNEAPOLIS SAID IT'S A BLACK EYE ON THEIR ABILITY TO GROW OUTSIDE NORTH AMERICA AND EUROPE ON THE OTHER HAND I DON'T MIND A COMPANY ADMITTING WHEN IT MAKES A MISTAKE AND BAILS OUT HE CONTINUES TO RATE THE STOCK A BUY AND SAYS THEIR SEED PRODUCTION LOOKS TO BE IN REAL GOOD SHAPE FOR FISCAL 1994 MR DAHLMAN FORECASTS EARNINGS OF 210 A SHARE ALTHOUGH IT COULD BE HIGHER IF WE GET THROUGH THIS FALL SEASON WITHOUT DAMAGE TO SEED PRODUCTION PAINEWEBBER INC ANALYST ROGER SPENCER FORESEES A REBOUND IN PLANTED ACRES NEXT YEAR AFTER THIS SUMMER'S DEVASTATING MIDWEST FLOODS AND SEES A DOUBLEDIGIT VOLUME GAIN IN SEED CORN SALES BUT HE RATES PIONEER'S STOCK A NEUTRAL 9309070126 930907 TECHNOLOGY APPLE PLANS TO UNVEIL MULTIMEDIA KIT DESIGNED FOR PCS UTILIZING INTEL CHIPS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC IS EXPECTED TO ANNOUNCE TODAY A BIG FORAY INTO THE MARKET FOR MULTIMEDIA ACCESSORIES FOR ITS MAIN NEMESIS PERSONAL COMPUTERS USING INTEL CORP'S MICROPROCESSORS INTELDESIGNED CHIPS ARE USED IN THE MANY BRANDS OF PCS THAT ARE BASED ON COMPUTER ARCHITECTURE CREATED BY INTERNATIONAL BUSINESS MACHINES CORP APPLE BY CONTRAST USES MOTOROLA INC CHIPS APPLE ACCORDING TO PEOPLE FAMILIAR WITH ITS PLANS PLANS TO BRING OUT A KIT CALLED THE CD MULTIMEDIA KIT THAT CAN TRANSFORM AN ORDINARY INTELBASED PC INTO A MULTIMEDIA MACHINE WITH HIGHQUALITY AUDIO AND OPTICALDISK DRIVES CAPABLE OF RUNNING PROGRAMS FROM THE BURGEONING LIBRARY OF CDROMBASED GAMES MOVIES EDUCATIONAL TEXTS OR ENCYCLOPEDIAS CDROMS ARE COMPACT DISKS THAT COMPUTERS CAN READ A SUPPLIER MEDIA VISION TECHNOLOGY INC OF FREMONT CALIF A MAKER OF SOUND PRODUCTS FOR PERSONAL COMPUTERS SAID APPLE SELECTED MEDIA VISION COMPONENTS FOR THE MULTIMEDIA KIT THE MOVE INTO MULTIMEDIA ACCESSORIES FOR INTELBASED PCS SIGNALS A BROADENING OF APPLE'S PROFILE AND AN AGGRESSIVE CROSSPLATFORM CAMPAIGN TO OFFER CDROM SOLUTIONS REGARDLESS OF MAKE OR BRAND MEDIA VISION SAID APPLE HAS WELLREGARDED MULTIMEDIA TECHNOLOGY AND ITS MACINTOSH COMPUTERS ARE POPULAR IN PART BECAUSE THEY ARE BUILT WITH COMPONENTS AND SOFTWARE THAT ALLOW THEM TO RUN MULTIMEDIA APPLICATIONS MORE EASILY THAN CAN INTELBASED PCS APPLE'S MOVE COMING AT A TIME WHEN ITS PROFIT FROM THE CORE MACINTOSH BUSINESS ARE UNDER SEVERE PRESSURE FROM PC INDUSTRY PRICE WARS IS APPARENTLY AN ATTEMPT TO CAPITALIZE ON THAT EXPERTISE IN THE MUCH BIGGER MARKET FOR INTELARCHITECTURE MACHINES ITS AGREEMENT WITH MEDIA VISION CAPITALIZES ON ONE OF THE HOTTEST THINGS IN PERSONAL COMPUTERS TODAY CDROMBASED GAMES MOVIES AND BOOKS SAID STEVEN J ALLAN VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF MEDIA VISION A SPOKESWOMAN FOR APPLE WHICH IS BASED IN CUPERTINO CALIF WOULDN'T COMMENT ON THE COMPANY'S PLANS HOWEVER SATJIV CHAHIL VICE PRESIDENT OF THE NEW MEDIA GROUP IN APPLE'S PERSONAL COMPUTER DIVISION SAID IN A STATEMENT PREPARED FOR RELEASE TODAY THAT APPLE INTENDS TO PROVIDE SUPERIOR MULTIMEDIA NOT ONLY TO MACINTOSH OWNERS BUT ALSO TO THE MILLIONS OF IBMCOMPATIBLE PC OWNERS IN THE MARKET MEDIA VISION WILL SUPPLY APPLE WITH 16BIT SOUND BOARDS AS COMPONENTS IN THE NEW KITS PRECISE TERMS OF THE AGREEMENT BETWEEN APPLE AND MEDIA VISION WEREN'T DISCLOSED BUT APPLE IS EXPECTED TODAY TO ANNOUNCE THE PRICE AND FURTHER DETAILS ABOUT THE KITS WHICH ARE EXPECTED TO BE AVAILABLE IMMEDIATELY APPLE ALSO PLANS TO ANNOUNCE MULTIMEDIA KITS FOR MACINTOSH MACHINES SAID PEOPLE FAMILIAR WITH THE COMPANY'S PLANS 9309070125 930907 MALAYSIA'S ECONOMY EXPANDED 104 IN 2ND PERIOD INFLATION SLOWED TO 35 BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA THE MALAYSIAN ECONOMIC PARADOX CONTINUES AMID A SPUTTERING GLOBAL ECONOMY THE COUNTRY RODE A SURPRISING SURGE IN EXPORTS TO REGISTER DOUBLEDIGIT GROWTH AND LOWER INFLATION IN THE SECOND QUARTER ON SATURDAY BANK NEGARA CONFIRMING WIDESPREAD MARKET SPECULATION OF 10 GROWTH REPORTED THAT THAT THE ECONOMY HAD EXPANDED AT A INFLATIONADJUSTED CLIP OF 104 HIGHER THAN THE 101 THAT HAD BEEN RUMORED FOR THE LAST TWO WEEKS AFTER REVISING MALAYSIA'S FIRSTQUARTER GROWTH DOWN TO 76 FROM 81 THE CENTRAL BANK CALCULATED THAT THE ECONOMY EXPANDED 9 IN THE FIRST HALF AND APPEARS TO BE ON TRACK TO EXCEED THE GOVERNMENT'S OFFICIAL FORECAST OF 76 GROWTH FOR THE YEAR THE ECONOMY GREW 8 IN 1992 IN A SURPRISING ASIDE TO THE GROWTH FIGURES BANK NEGARA REPORTED THAT MALAYSIA'S INFLATION RATE AS MEASURED BY THE CONSUMER PRICE INDEX SLOWED TO 35 IN THE SECOND QUARTER FROM 44 IN THE FIRST QUARTER ECONOMISTS HAD MAINTAINED THAT SLOWER BUT MORE SUSTAINABLE GROWTH WAS NECESSARY TO SUBDUE THE GRADUAL ESCALATION IN PRICES IT'S CERTAINLY IMPRESSIVE BUT IS THIS KIND OF GROWTH SUSTAINABLE SAID AN ECONOMIST WITH A BRITISH INTERNATIONAL BROKERAGE FIRM IF GROWTH HAD STAYED AT AROUND 8 A RETURN TO THE DEBATE ABOUT AN INFLATIONARY THREAT MIGHT HAVE BEEN PREEMPTED NOW THAT'S UNLIKELY EVEN THE GOVERNMENT APPEARS TO HAVE BEEN TAKEN BY SURPRISE BY THE MOST RECENT GROWTH FIGURES ON FRIDAY MORNING FINANCE MINISTER ANWAR BIN IBRAHIM TOLD MALAYSIAN REPORTERS THAT SECONDQUARTER GROWTH WAS LIKELY TO BE ABOUT 8 NOT 101 AS RUMORED BUT LATER IN THE DAY AFTER A MEETING WITH FORMER BRITISH PRIME MINISTER MARGARET THATCHER HE SAID THAT THE ECONOMY HAD EXPANDED 104 IN THE QUARTER PRIME MINISTER MAHATHIR BIN MOHAMAD SAID SATURDAY THAT THE GROWTH SURGE WAS UNEXPECTED BECAUSE WE KNOW OUR TRADING PARTNERS ARE EXPERIENCING A SLOWDOWN BUT SINCE THE DEMAND FOR OUR GOODS KEEPS ON INCREASING IT HAS MADE AN IMPACT ON OUR ECONOMIC GROWTH IN A STATEMENT ON SATURDAY BANK NEGARA ATTRIBUTED THE STRONGERTHANEXPECTED SECONDQUARTER GROWTH TO A REVIVAL IN AGRICULTURE PRODUCTION UP 81 FROM THE FIRST QUARTER AS WELL AS A SURGE IN THE MANUFACTURING SECTOR OF 17 THE CONSTRUCTION AND SERVICE SECTORS ALSO RECORDED MARGINAL INCREASES WHILE MINING ACTIVITY DECLINED THE SPURT IN AGRICULTURAL ACTIVITY WAS FUELED SOLELY BY A 23 INCREASE IN THE OUTPUT OF PALM OIL OF WHICH MALAYSIA IS THE WORLD'S LARGEST PRODUCER THE MANUFACTURING SECTOR WAS BOOSTED BY A SURGE IN EXPORTS OF WOOD AND WOODBASED GOODS TEXTILES AND APPAREL AND BY ELECTRICAL APPLIANCES AND COMPUTERRELATED EQUIPMENT MANUFACTURED GOODS FOR THE HOME MARKET SUCH AS FABRICATEDMETAL PRODUCTS RUBBER ITEMS AND PETROLEUMBASED PRODUCTS ALSO REGISTERED HEFTY GAINS WITH THE PRIMARY SOURCE OF GROWTH COMING FROM THE EXTERNAL FRONT DEMAND FOR EXPORTS THAT PARTLY EXPLAINS WHY INFLATION CAME DOWN SAID THE ECONOMIST IF THAT CONTINUES INFLATION SHOULD REMAIN IN CHECK FOR THE NEXT SIX MONTHS FOLLOWED BY SIGNS OF GROWING STRAINS AFTER THAT HE AND OTHER ECONOMISTS WERE CONCERNED ABOUT INDICATIONS THAT CONSUMER SPENDING IS REGAINING MOMENTUM AFTER SLACKENING OVER THE PAST YEAR BANK NEGARA REPORTED THAT MALAYSIA'S BANKING SYSTEM EXTENDED MORE CREDIT FOR PERSONAL CONSUMPTION AND COMMERCE IN THE SECOND QUARTER THAN IN THE PREVIOUS PERIOD ANOTHER CONCERN FOR ECONOMISTS IS THE CONTINUED RAPID EXPANSION OF MALAYSIA'S MONEY SUPPLY FUELED PRIMARILY BY AN INCREASE IN BANK LENDING AND AN INFLOW OF FUNDS FROM HOME AND ABROAD INTO THE COUNTRY'S BUOYANT STOCK MARKET BASED ON THE INCREASE IN THE FIRST HALF THE THREE CATEGORIES OF MONETARY AGGREGATES ALL WOULD RISE MORE THAN 17 BY THE END OF THE YEAR 9309070124 930907 EXXON UNIT'S LAWSUIT SEEKS TO BLOCK ACCORD ON CLAIMS IN OIL SPILL ANCHORAGE ALASKA AN EXXON CORP UNIT'S LAWSUIT AGAINST ALYESKA PIPELINE SERVICE CO THREATENS TO DERAIL A 98 MILLION SETTLEMENT OF CLAIMS AGAINST ALYESKA RELATED TO THE EXXON VALDEZ OIL SPILL IN 1989 LAST WEEK EXXON SHIPPING CO FILED SUIT IN FEDERAL COURT HERE TO BLOCK THE SETTLEMENT WHICH WAS FORGED LAST SPRING AFTER YEARS OF LEGAL BICKERING BETWEEN ALYESKA AND FISHERMEN BUSINESS OWNERS AND NATIVE INTERESTS WHO CLAIMED DAMAGES STEMMING FROM THE OIL SPILL EXXON SHIPPING OWNED THE EXXON VALDEZ SUPERTANKER WHICH WENT AGROUND INTO A WELLMARKED REEF AND GUSHED 11 MILLION GALLONS OF OIL INTO PRINCE WILLIAM SOUND IN MARCH 1989 EXXON SHIPPING ISN'T A PARTY TO THE SETTLEMENT BUT ASSERTS IN ITS LAWSUIT THAT THE PACT COULD DEPRIVE EXXON OF CERTAIN ARBITRATION RIGHTS AS WELL AS RESTRICT ITS ABILITY TO SEEK REIMBURSEMENTS FOR SOME OF ITS SPILLRELATED PAYMENTS AND COSTS THE SETTLEMENT IS SET TO BE SUBMITTED TO STATE AND FEDERAL JUDGES FOR APPROVAL NEXT MONTH EXXON IS SEEKING TO HAVE THOSE HEARINGS INDEFINITELY DELAYED MANY FISHERMEN AND OTHER CLAIMANTS BEMOANED EXXON SHIPPING'S SUIT WORRYING THAT IT WILL FURTHER PUSH BACK THE DAY WHEN THEY'LL BEGIN RECEIVING MONEY FROM THEIR SPILL CLAIMS THAT MONEY IS DESPERATELY NEEDED MANY CLAINANTS CONTEND BECAUSE OF THE POOR FISHING RUNS AND OTHER ECONOMIC WOES CAUSED BY THE SPILL THE SUIT SIGNALED AN UNUSUAL PUBLIC RIFT AMONG THE GIANT OIL COMPANIES THAT WORK ALASKA'S NORTH SLOPE FIELDS ALYESKA WHICH OPERATES THE TRANSALASKA PIPELINE AND ITS OILTANKERLOADING TERMINAL IS OWNED BY EXXON BRITISH PETROLEUM LTD ATLANTIC RICHFIELD CO AND SEVERAL OTHER BIG OIL COMPANIES THEY OVERSEE ALYESKA THROUGH AN OWNERS' COMMITTEE THAT ACTS LIKE A BOARD OF DIRECTORS ALYESKA COULDN'T HAVE AGREED TO THE SETTLEMENT IN THE FIRST PLACE WITHOUT APPROVAL OF THAT OWNERS' COMMITTEE AN ALYESKA SPOKESWOMAN DEFENDED THE SETTLEMENT AND SAID ALYESKA WILL CONTEST THE EXXON SHIPPING SUIT 9309070123 930907 PACIFIC WESTERN HOLDING TALKS SAN JOSE CALIF PACIFIC WESTERN BANCSHARES INC SAID IT IS ENGAGED IN DISCUSSIONS CONCERNING THE POSSIBLE ACQUISITION OF THE HOLDING COMPANY AND ITS OPERATING UNIT PACIFIC WESTERN BANK PACIFIC WESTERN DECLINED TO IDENTIFY THE PARTY OR PARTIES INVOLVED IN THE DISCUSSIONS HOWEVER IT SAID MANY IMPORTANT HURDLES REMAIN INCLUDING TIMING AND PRICING AS WELL AS APPROVAL BY BOTH COMPANY BOARDS AND BY REGULATORY AUTHORITIES IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY PACIFIC WESTERN ROSE 125 OR 13 TO 1075 9309070122 930907 WHO'S NEWS UNIQUE MOBILITY INC UNIQUE MOBILITY INC GOLDEN COLO SHELDON WEINIG 65 YEARS OLD WAS ELECTED TO THE BOARD OF THIS MAKER OF MAGNET MOTORS AND ELECTRONIC CONTROLS HE FILLS A VACANCY CREATED BY A RESIGNATION LAST JANUARY DR WEINIG IS CHAIRMAN AND FOUNDER OF MATERIALS RESEARCH CORP A SUBSIDIARY OF SONY USA INC AND VICE CHAIRMAN OF SONY ENGINEERING & MANUFACTURING OF AMERICA 9309070121 930907 MARKETING & MEDIA WARNER BROS'S FUGITIVE' RUNS AWAY ON HOLIDAY TO WIN FILM BOXOFFICE RACE BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD WARNER BROS'S THE FUGITIVE HAD ANOTHER TREMENDOUS RUN AT THE BOX OFFICE OVER THE HOLIDAY WEEKEND CREATING A NEAR PHOTO FINISH FOR THE SUMMER BOXOFFICE CROWN PRELIMINARY FIGURES SHOW WARNER BROS NARROWLY TOPPED UNIVERSAL PICTURES TO WIN THE MARKETSHARE BATTLE FOR THE INDUSTRY'S IMPORTANT SUMMER SEASON APPROACHING THE THREEDAY WEEKEND WARNER AND UNIVERSAL WERE IN A DEAD HEAT FOR THE LEAD POSITION EACH WITH ABOUT 19 OF TOTAL SUMMER MOVIETICKET SALES BUT WARNER HAD THE TOP TWO GROSSING MOVIES FOR THE WEEKEND THE FUGITIVE TOOK IN ABOUT 173 MILLION BRINGING ITS TOTAL GROSS TO 1337 MILLION AND THE MAN WITHOUT A FACE MEL GIBSON'S DIRECTORIAL DEBUT GROSSED 54 MILLION FOR A TOTAL OF 124 MILLION DAN FELLMAN EXECUTIVE VICE PRESIDENT AT WARNER SAID THE TIME WARNER INC UNIT WOULD TOP UNIVERSAL'S SUMMER TICKET SALES BY ABOUT 21 MILLION THAT'S PRETTY AMAZING WHEN YOU THINK THEY HAD A MOVIE THAT TOOK IN MORE THAN 300 MILLION MR FELLMAN SAID THAT BLOCKBUSTER WAS UNIVERSAL'S JURASSIC PARK THE HIGHEST GROSSING MOVIE OF THE SUMMER AND THE SECONDHIGHEST GROSSING MOVIE OF ALL TIME BEHIND ANOTHER STEVEN SPIELBERGDIRECTED UNIVERSAL FILM ET THE EXTRATERRESTRIAL UNIVERSAL IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA THE LABOR DAY WEEKEND CONTINUED A RECORD PACE AT THE NATION'S BOX OFFICES EARLY ESTIMATES INDICATE THAT TICKET SALES TOTALED MORE THAN 72 MILLION UP FROM THE PREVIOUS LABOR DAY WEEKEND RECORD SET IN 1990 WHEN ABOUT 66 MILLION IN TICKETS WERE SOLD ESTIMATES SHOW THAT THE TOTAL SUMMER BOXOFFICE TAKE WAS 213 BILLION UP 5 FROM THE PREVIOUS 204 BILLION RECORD SET IN 1989 ACCORDING TO ANALYST AD MURPHY OF THE HOLLYWOOD REPORTER FINAL SUMMER TOTALS ARE EXPECTED LATER THIS WEEK UNIVERSAL'S HARD TARGET WAS THE NO 3 MOVIE OF THE LABOR DAY WEEKEND GROSSING ABOUT 44 MILLION TO DATE IT HAS GROSSED 248 MILLION JURASSIC PARK WAS THE WEEKEND'S NO 4 FILM TAKING IN ABOUT 4 MILLION FOR A TOTAL OF 3165 MILLION MOREOVER THAT MOVIE HAS SOLD OVER 575 MILLION IN TICKETS WORLDWIDE WARNER HOWEVER RELEASED TWICE AS MANY MOVIES THIS SUMMER AS UNIVERSAL SCORING SUCCESS WITH MANY OF THEM FREE WILLY A FAMILY MOVIE ABOUT A BOY WHO BEFRIENDS A WHALE HAS GROSSED ALMOST 67 MILLION SO FAR MADE IN AMERICA A COMEDY STARRING TED DANSON AND WHOOPI GOLDBERG GROSSED 50 MILLION BOOSTED BY THIS SUCCESS MR FELLMAN PREDICTED THAT HIS STUDIO WOULD WIN THE MARKET SHARE RACE FOR THE FULL YEAR HOLLYWOOD EXECUTIVES ARE CHEERED THAT BUSINESS IN AUGUST TYPICALLY THE WEAKEST OF THE THREE SUMMER MONTHS WAS UNUSUALLY STRONG ACCORDING TO MR MURPHY THEATER OWNERS SOLD A RECORD 5331 MILLION IN TICKETS LAST MONTH UP MORE THAN 37 OVER LEVELS OF THE PAST TWO SUMMERS I BELIEVE WE'RE STILL IN SOMETHING OF A RECESSION SAID NIKKI ROCCO A SENIOR VICE PRESIDENT AT UNIVERSAL BUT PEOPLE ARE GOING OUT AND SUPPORTING THE MOTION PICTURE BUSINESS IN ADDITION TO JURASSIC PARK AND THE FUGITIVE TWO OTHER MOVIES GROSSED MORE THAN 100 MILLION THIS SUMMER THE FIRM THE TOM CRUISE THRILLER FROM PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURES UNIT AND SLEEPLESS IN SEATTLE FROM SONY CORP'S TRISTAR UNIT IN THE LINE OF FIRE THE CLINT EASTWOOD FILM FROM SONY'S COLUMBIA PICTURES HAS SO FAR GROSSED ALMOST 98 MILLION 9309070120 930907 CHINA ISSUES BONDS FOR THE SECOND TIME THIS YEAR IN THE US SPECIAL TO THE WALL STREET JOURNAL BEIJING CHINA HAS ISSUED BONDS IN THE US FOR THE SECOND TIME THIS YEAR THE OFFICIAL CHINA DAILY SAID THE PEOPLE'S CONSTRUCTION BANK OF CHINA A STATERUN BANK IS FLOATING 10YEAR BONDS VALUED AT 120 MILLION UNDER AN AGREEMENT WITH LEHMAN BROTHERS THE ENGLISHLANGUAGE NEWSPAPER SAID AN OFFICIAL REACHED AT THE CONSTRUCTION BANK'S HEAD OFFICE IN BEIJING SAID THE AGREEMENT WAS SIGNED ON AUG 19 THE BONDS HAVE A FIXED ANNUAL INTEREST RATE OF 6875 IN JULY CHINA INTERNATIONAL TRUST & INVESTMENT CORP OR CITIC A MAJOR CHINESE BORROWER ISSUED 10YEAR YANKEE BONDS VALUED AT 250 MILLION THAT WAS THE FIRST TIME A CHINESE FINANCIAL INSTITUTION FLOATED BONDS IN THE US SINCE 1911 IN DECEMBER AND JUNE THE CONSTRUCTION BANK ISSUED FIVE AND SEVENYEAR BONDS IN EUROPE VALUED AT 270 MILLION THE CAPITAL FROM THE US BOND SALES WILL BE INVESTED IN DEVELOPMENT PROJECTS INVOLVING RAILWAYS POWER STATIONS AND RAW MATERIALS THE CHINA DAILY SAID THE NEWSPAPER QUOTED CHINESE BANKERS AS SAYING THEY WILL CONTINUE TO EXPLORE THE US MARKET THEY SAID LOW US INTEREST RATES GIVE CHINESE BONDS AN ADVANTAGE BECAUSE THEY CARRY HIGHER RATES 9309070119 930907 JULY INDUSTRIAL ORDERS IN WESTERN GERMANY SURGE ABOVE JUNE'S SPECIAL TO THE WALL STREET JOURNAL BONN WESTERN GERMAN INDUSTRY SHOWED A SURPRISINGLY STRONG SURGE IN ORDERS IN JULY BUT ECONOMISTS SAID THE RULES OF THE EXPORTING GAME HAD CHANGED AT THE BEGINNING OF AUGUST WITH EUROPE'S CURRENCY CRISIS AND THAT IT WASN'T NECESSARILY A SIGN OF A LONGTERM TREND THE GERMAN ECONOMICS MINISTRY REPORTED YESTERDAY THAT JULY INDUSTRIAL ORDERS JUMPED 31 FROM THEIR JUNE LEVEL BUT WERE STILL DOWN 51 FROM JULY 1992 A SURVEY OF EIGHT ECONOMISTS LAST WEEK SHOWED THEY EXPECTED A DECLINE OF 02 FROM JUNE AND HAD BRACED THEMSELVES FOR A 92 DROP FROM A YEAR EARLIER I WOULDN'T SAY THE FIGURES SHOW THE RECESSION HAS ENDED SAID THORSTEN NEUFELD AN ECONOMIST WITH DEUTSCHE BANK RESEARCH IN FRANKFURT IN PARTICULAR WE MIGHT SEE SOME SETBACKS THANKS TO THE EXCHANGE RATE MECHANISM CRISIS THE RISE IN INDUSTRIAL ORDERS WAS LED BY DOMESTIC ORDERS WHICH INCREASED BY A PRELIMINARY 43 COMPARED WITH A SLIGHT 06 GAIN IN FOREIGN ORDERS WHILE THE RISE IN WESTERN GERMANY'S JULY ORDERS WAS A PLEASANT SURPRISE ECONOMISTS WARNED AGAINST VIEWING THE FIGURES AS THE START OF A LONGTERM TREND OF HEALTHY GAINS IN ORDERS OR A MORE GENERAL RECOVERY IN THE ECONOMY AS A WHOLE IF BY A RECOVERY YOU MEAN REAL GROWTH RATES OF 2 TO 3 A YEAR THEN WE WON'T SEE THAT FOR THE NEXT ONE OR TWO YEARS AT LEAST SAID HOLGER FAHRINKRUG AN ECONOMIST WITH UBS LTD IN FRANKFURT 9309070118 930907 INTERNATIONAL POWER AND ITS PROBLEMS TAMING GOV BARRIO A LONGTIME OPPONENT OF MEXICO'S GOVERNMENT BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL CIUDAD JUAREZ MEXICO MEXICANS HAVE A TERM FOR FRANCISCO BARRIO TERRAZAS THE FIERY GOVERNOR OF THE STATE OF CHIHUAHUA WHO HAS FOUGHT THE CENTRAL GOVERNMENT FOR A DECADE MUY BRONCO OR VERY UNRULY WHEN HE SWEPT INTO OFFICE AS HEAD OF MEXICO'S LARGEST STATE LAST YEAR THE 43YEAROLD WAS EXPECTED TO USE HIS BROAD SHOULDERS TO MUSCLE AWAY THE SOCIAL WOES CAUSED BY CHIHUAHUA'S HIGH UNEMPLOYMENT INSTEAD THE INTRACTABILITY OF THE PROBLEMS HAS WORN HIM DOWN WHAT CRITICS REFER TO AS THE TAMING OF THE BRONCO BODES ILL FOR BOTH CHIHUAHUA AND MEXICO'S OPPOSITION PARTIES AS ELECTION SEASON NEARS FOR AUGUST'S PRESIDENTIAL VOTING PRESIDENT CARLOS SALINAS DE GORTARI'S PARTY WOULD SEEM TO BE VULNERABLE BECAUSE HE HAS STAKED SO MUCH ON PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH FACES A CHALLENGE IN THE US CONGRESS IN ADDITION MR SALINAS'S INSTITUTIONAL REVOLUTIONARY PARTY KNOWN AS PRI IS PUSHING ELECTION REFORMS TO LIMIT THE RULING PARTY'S ABILITY TO USE FRAUD TO ELECT ITS PRESIDENTIAL CANDIDATE NEXT YEAR MR SALINAS CAN'T RUN AGAIN YET DESPITE THE OPPORTUNITIES NO OPPOSITION PARTY IS PREPARED TO SEIZE THEM THE PARTY OF THE DEMOCRATIC REVOLUTION OR PRD GAVE MR SALINAS SUCH A SCARE IN THE 1988 PRESIDENTIAL ELECTIONS THAT THE PRI IS ASSUMED TO HAVE CHEATED WIDELY TO WIN BUT THE LEFTIST PRD HAS FARED BADLY IN MANY ELECTIONS SINCE AND IS REPOSITIONING ITSELF TOWARD THE CENTER BY AWKWARDLY COURTING THE SMALL AND MIDSIZE BUSINESS CLASS THE NATIONAL ACTION PARTY OR PAN THE TRADITIONAL OPPOSITION PARTY OF WHICH MR BARRIO IS A MEMBER HAS FARED BETTER IT HAS WON THREE OF MEXICO'S 31 GOVERNORSHIPS THE FIRST TIME A PARTY HAS BROKEN THE PRI'S STRANGLEHOLD ON THE STATE CAPITALS BUT BICKERING HAS LED TO FORMATION OF A SPLINTER PARTY OF EXPANISTAS IN ADDITION AS MR BARRIO'S PROBLEMS SHOW NOW THAT THE PAN HAS TASTED POWER AND THE PROBLEMS THAT GO WITH IT IT HAS LOST SUPPORTERS FED UP WITH THE ECONOMIC CRISES IN THE EARLY 1980S MR BARRIO WON THE MAYORSHIP OF THE MAJOR CITY OF CIUDAD JUAREZ THEN HE BUILT HIS POPULIST IMAGE ALTERNATING BETWEEN STORM THERAMPARTS ORATORY AND DELIBERATE SPEECH PUNCTUATED BY A SLOW CROOKED SMILE INVOKING THE TEACHINGS OF GANDHI AND BORROWING FROM THE CIVIL DISOBEDIENCE MANUALS WRITTEN BY SUCH AMERICAN LEADERS AS MARTIN LUTHER KING JR HE WENT ON WEEKSLONG HUNGER STRIKES TO PROTEST ELECTION FRAUD ONCE FOR SEVERAL MONTHS HE LIVED WITH HIS WIFE AND FOUR SMALL CHILDREN IN A POOR SECTION OF CIUDAD JUAREZ TO LEARN WHAT IT WAS LIKE WITHOUT ELECTRICITY OR RUNNING WATER AFTER LEAVING OFFICE AS MAYOR IN THE MID1980S HE STOOD ON THE STEPS OF CITY HALL BELLOWING TO PERHAPS 3000 PEOPLE ABOUT THE FRAUD THAT THE PRI USED TO STAY IN POWER AS DUSK SETTLED AND A LIGHT RAIN BEGAN TO FALL HE WORKED THE CROWD TO FEVER PITCH THEN SHOUTED TO THE BRIDGES THE CROWD FOLLOWED HIM TO ONE OF THE BRIDGES LINKING MEXICO TO THE US AND ENCAMPED THERE SHUTTING THE BRIDGE IN PROTEST OVER THE YEARS MR BARRIO LED MORE MARCHES EVEN THOUGH THE POLICE SOMETIMES WADED INTO THE CROWD AND EVEN HIT HIM HE BECAME A FANATIC SAYS MANUEL MACHADO AUTHOR OF A RECENT BOOK ON CHIHUAHUA HE HAD A GLAZED LOOK TO HIM AND HE LOOKED LIKE HE WAS GOING TO SMITE THE EVILDOERS WHEN MR BARRIO RAN FOR GOVERNOR THE FIRST TIME IN 1986 HE LOST TO PRI CANDIDATE FERNANDO BAEZA MELENDEZ IN AN ELECTION WIDELY CONSIDERED TO BE FRAUDULENT SUPPORTERS OFTEN CHANTED BARRIO SI BAEZA NO IN THEIR CARS THEY TAPPED OUT THE EIGHTBEAT CHANT ON THEIR HORNS FOR YEARS PEOPLE DRIVING BY THE STATEHOUSE HONKED THEIR HORNS EIGHT TIMES MR BARRIO TRIED AGAIN LAST YEAR AND WON OVERWHELMINGLY HE CELEBRATED THE VICTORY BY NAMING A DAUGHTER BORN RIGHT AFTERWARD VICTORIA BUT HIS GOVERNORSHIP BEGAN IN TRAGEDY WHILE HIS FAMILY WAS BEING DRIVEN TO A RALLY RIGHT BEFORE THE ELECTION THE DRIVER LOST CONTROL OF THE SPEEDING CAR KILLING MR BARRIO'S 16YEAROLD DAUGHTER AND HOSPITALIZING TWO OTHER DAUGHTERS THE PREOCCUPIED MR BARRIO HAS GENERATED LITTLE EXCITEMENT SINCE FARM WORKERS UNHAPPY WITH THE WIDESPREAD UNEMPLOYMENT IN THEIR RANKS HAVE STAGED DEMONSTRATIONS RANCHERS IN CHIHUAHUA WHOSE ARID LAND IS MUCH LIKE THAT OF TEXAS' TO THE NORTH HAVE PROTESTED AGAINST BANK LENDING RATES THAT ARE A STRANGLING 25 A YEAR EVEN SO MANY RANCHERS CAN'T FIND LOANS THEY COMPLAIN STUDENTS AT THE AGRICULTURAL COLLEGE IN CIUDAD JUAREZ OCCUPIED BUILDINGS TO PROTEST WHAT THEY SAW AS A CORRUPT ADMINISTRATION MR BARRIO SAT ON THE SIDELINES UNTIL THE DEMONSTRATION ESCALATED INTO A TWOHOUR GUNFIGHT BETWEEN STUDENTS AND ADMINISTRATION OFFICIALS IN WHICH NINE PEOPLE WERE WOUNDED HIS LACK OF INVOLVEMENT DREW MORE PROTESTS MR SALINAS DURING A RECENT TRIP TO CHIHUAHUA DREW CHEERS AS HE WADED INTO THE CROWDS HE EVEN WON OVER MR BARRIO'S WIFE HORTENSIA WHO WAS CLAPPING WARMLY FOR HIM BY THE END OF THE TWODAY TRIP MR BARRIO HOWEVER MAINLY DREW PROTESTS WHERE'S THE CHANGE YOU PROMISED ONE SIGN ASKED MOCKINGLY IN CHIHUAHUA CITY A CROWD OF ABOUT 1500 CHANTED THE EQUIVALENT OF DOWN WITH BARRIO THE PROMISES BARRIO MADE HAVEN'T BEEN MET SAID ROSA MARIA MARTINEZ ONE OF THOSE CHANTING HAS SHE GIVEN UP ON HIM WHY ELSE WOULD I BE HERE IN THIS SCORCHING SUN SHE ASKED RHETORICALLY YES I HAVE WHEN MR BARRIO ADDRESSED THE CROWDS THAT GATHERED TO SEE THE PRESIDENT HE SEEMED MEEK KNOWING THAT HIS STATE NEEDS THE KIND OF ECONOMIC HELP THAT ONLY THE FEDERAL GOVERNMENT CAN PROVIDE HE SPENT MOST OF THE TIME PRAISING MR SALINAS'S ACCOMPLISHMENTS WITH MR BARRIO'S POPULARITY IN QUESTION THE ONCEFIERCE OPPOSITION FIGURE SEEMED TO BE TRYING TO IDENTIFY HIMSELF WITH THE RULING PARTY'S POPULAR LEADER WHEN THE TOUR FINISHED MR BARRIO TOOK HIS FAMILY ON A WEEKEND TRAIN RIDE WITH THE PRESIDENT AND HIS FAMILY BARRIO IS NO LONGER A POLITICIAN OF THE OPPOSITION GROUSES JORGE EUGENIO ORTIZ GALLEGOS A FORMER PAN CONGRESSMAN HE HAS LOST HIS CONSCIENCE 9309070117 930907 FAMILY OWNING MAJOR INTEREST IN KATY REJECTS ROSECLIFF'S ACQUISITION PROPOSAL BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL KATY INDUSTRIES INC'S CONTROLLING FAMILY REJECTED AN INVESTMENT PARTNERSHIP'S UNSOLICITED 29ASHARE ACQUISITION PROPOSAL FOR THE COMPANY THE CARROLL FAMILY SAID IT INTENDS TO PRESS FORWARD WITH AN EARLIER PLAN TO TAKE THE REMAINING 48 PUBLIC STAKE PRIVATE AT 2575 A SHARE THE FAMILY'S REBUFF SEEMS LIKELY TO INCREASE DISSATISFACTION THAT HAS ALREADY SURFACED AMONG SOME OF KATY'S PUBLIC STOCKHOLDERS A FEW OF WHOM HAVE ACCUSED THE FAMILY OF TRYING TO JAM THROUGH A LOWBALL BID ROSECLIFF PENSLER PARTNERS LP DISCLOSED ITS 262 MILLION BID FOR THE ELGIN ILL MANUFACTURER LATE THURSDAY BUT WITH UPWARD MOMENTUM STUNTED BY THE CARROLL FAMILY'S ANNOUNCED RESISTANCE KATY SHARES REACTED ONLY MODESTLY ON FRIDAY IN NEW YORK STOCK EXCHANGE TRADING KATY CLOSED AT 26625 UP 75 CENTS NEVERTHELESS THE TRADING PRICE TOPS WHAT THE FAMILY HAS PROPOSED TO PAY WE DON'T CONSIDER THIS TO BE A CREDIBLE OFFER BECAUSE THEY DON'T HAVE FINANCING SAID PHILIP JOHNSON A MEMBER OF THE FAMILY GROUP IN OUR OPINION OURS IS THE ONLY CREDIBLE OFFER ON THE TABLE THE 2575 A SHARE PROPOSAL IS GROSSLY INADEQUATE SAID JEFFREY HALIS GENERAL PARTNER OF TYNDALL PARTNERS LP IN NEW YORK WHICH HOLDS KATY SHARES THE FACT THAT SOMEBODY BID AT LEAST 29 MAKES IT MORE CERTAIN THAN EVER MR HALIS WONDERED ALOUD WHAT ABOUT THE BOARD'S FIDUCIARY DUTY SOME HOLDERS HAVE CONTENDED THAT KATY A DIVERSIFIED MANUFACTURER WITH HOLDINGS OF A SCORE OF SMALL COMPANIES HAS A VALUE IN EXCESS OF 30 A SHARE INDEED THE FAMILY'S OFFER IS LESS THAN KATY'S STATED BOOK VALUE OF 2750 A SHARE HOLDERS ARGUE THAT THE BOOK VALUE ITSELF IS LOW BECAUSE MANY ASSETS ARE ON THE BOOKS AT AN UNREALISTICALLY LOW LEVEL KATY SOLD A RAILROAD OPERATION TO UNION PACIFIC CORP FIVE YEARS AGO FOR EXAMPLE AND AS A RESULT NOW HOLDS NEARLY 800000 SHARES OF UNION PACIFIC STOCK THOSE SHARES ARE BEING CARRIED ON THE BOOKS AT APPROXIMATELY 253 MILLION BUT HAVE A VALUE OF ABOUT TWICE THAT AMOUNT GIVEN THE INCREASED PRICE AT WHICH UNION PACIFIC SHARES NOW TRADE ROSECLIFF PENSLER SAID IT WOULD PAY FOR ITS PLANNED ACQUISITION IN PART THROUGH THE SALE OF THE UNION PACIFIC HOLDINGS MR JOHNSON A FAMILY GROUP MEMBER SAID I SUSPECT THAT IN VIRTUALLY EVERY OFFER EVER ACCEPTED TO TAKE A PUBLIC COMPANY PRIVATE SOME OF THE HOLDERS CLAIM THEY OUGHT TO GET MORE MONEY THE FAMILY'S BID REPRESENTS A FAIR VALUE TO THE COMPANY HE ASSERTED AND ANYONE WHO SITS DOWN AND CAREFULLY AND OBJECTIVELY GOES OVER ITS FINANCIAL MATERIAL WILL COME TO THE SAME CONCLUSION IN A CAREFULLY WORDED STATEMENT KATY'S BOARD SIMPLY SAID THE CARROLL FAMILY HAD REITERATED THAT IT IS NOT INTERESTED IN SELLING ITS MAJORITY INTEREST THE COMPANY ALSO NOTED THAT THE FAMILY INTENDS TO VOTE ITS 52 STAKE IN FAVOR OF THE EARLIER BUYOUT PLAN THE PLAN REQUIRES ONLY A SIMPLE MAJORITY APPROVAL ROSECLIFF PENSLER PARTNERS LP SWIFTLY RESPONDED THAT IT WAS EXTREMELY DISAPPOINTED AT THE IMMEDIATE KNEEJERK REJECTION OF OUR FRIENDLY PROPOSAL IT ALSO RAISED THE ISSUE OF POSSIBLE DIRECTOR LIABILITY BY NOTING THE BIG PREMIUM ITS PROPOSAL WOULD PROVIDE HOLDERS AND SAYING IT WAS CONFIDENT THE COMPANY'S INDEPENDENT DIRECTORS WILL FULFILL THEIR FIDUCIARY DUTY TO ALL KATY SHAREHOLDERS ROSECLIFF PENSLER IS AN ENTITY FORMED BY NEW YORK MERCHANT BANKER ROSECLIFF INC AND PENSLER CAPITAL CORP A MERCHANTBANKING ADVISORY CONCERN LED BY FORMER DILLON READ MANAGING DIRECTOR SANFORD N PENSLER ROSECLIFF IS HEADED BY PETER T JOSEPH FORMERLY WITH ACADIA PARTNERS WHICH OFTEN CONDUCTED ACQUISITIONS ON BEHALF OF THE BASS FAMILY AND OTHER INVESTORS THE CARROLL FAMILY HEIRS OF KATY FOUNDER WALLACE CARROLL INITIALLY SOUGHT LAST YEAR TO ACQUIRE THE PUBLIC KATY STAKE AT 22 A SHARE AFTER A COMMITTEE OF OUTSIDE DIRECTORS REBUFFED THAT BID AS INADEQUATE THE FAMILY EARLY THIS YEAR SWEETENED THE OFFER TO 2575 THAT PROPOSAL GOT BOARD APPROVAL AND KATY HOLDERS ARE SET TO VOTE ON THE CARROLL OFFER SEPT 16 IN ITS THURSDAY LETTER TO KATY'S CHAIRMAN JACOB SALIBA ROSECLIFF PENSLER SAID IT MIGHT BE WILLING TO INCREASE ITS BID DEPENDING ON WHAT ITS DUE DILIGENCE DISCLOSED A SPOKESMAN FOR THE ROSECLIFF PARTNERSHIP CONTENDED THAT FINANCING IS ARRANGED NOT ONLY DID TWO CARROLL FAMILY DIRECTORS CALL OUR FINANCING SOURCES THEY WERE TOLD WE DID HAVE FINANCING SUBJECT TO DUE DILIGENCE THE SPOKESMAN SAID THEY THEN TRIED TO BADMOUTH THEIR OWN COMPANY BY NOTING POTENTIAL ENVIRONMENTAL AND PRODUCT PROBLEMS IN THE HOPE OF MAKING ROSECLIFFE PENSLER'S FINANCING SOURCES GO AWAY THE FAMILY GROUP SAID IT ISN'T CLEAR WHETHER THE COMMITTEE OF INDEPENDENT DIRECTORS THAT APPROVED THE SWEETENED BID AFTER THE COMMITTEE'S INVESTMENT ADVISER GOLDMAN SACHS & CO ENDORSED IT WILL BE ASKED REVIEW THE ROSECLIFF BID 9309070116 930907 BIG BOARD'S 2YEAR EFFORT TO LURE BACK OVERSEAS PROGRAM TRADING MEETS SNAGS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE IS STILL FACING OBSTACLES IN ITS TWOYEAR EFFORT TO ATTRACT PROGRAM TRADING BACK TO THE BIG BOARD FROM OVERSEAS MARKETS IN THE LATEST SIGN THE EXCHANGE REPORTED LAST WEEK THAT 503 OR 334 MILLION SHARES OF PROGRAM TRADING BY ITS MEMBER BROKERAGE FIRMS TOOK PLACE ON FOREIGN MARKETS IN THE WEEK ENDED AUG 27 IT WAS THE MOST FOREIGN TRADING BY US PROGRAM TRADERS IN ANY WEEK THIS YEAR IN THE PREVIOUS WEEK ENDED AUG 20 OVERSEAS MARKETS ACCOUNTED FOR JUST 141 OF PROGRAM TRADING BY US BROKERAGE FIRMS COMPUTERASSISTED PROGRAM TRADING INVOLVES THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 AND OFTEN HUNDREDS OF DIFFERENT STOCKS THE HEAVY OVERSEAS TRADING IS A SETBACK FOR THE BIG BOARD FOR THE PAST TWO YEARS THE EXCHANGE HAS SOUGHT TO LURE PROGRAM TRADING BACK TO THIS SHORE DESPITE CONTINUING CONTROVERSY ON WALL STREET ABOUT ITS EFFECTS AMONG THE INDUCEMENTS THE EXCHANGE HAS SOUGHT TO BEND SOME DISCLOSURE REQUIREMENTS AND SLASH FEES IT HAS BEEN ENCOURAGING BIG INSTITUTIONS TO USE A NEW AFTERHOURS CROSSING SESSION TO EXECUTE PROGRAM TRADES RATHER THAN GO OVERSEAS BUT THE TRADING ON THE AUG 27 WEEK SHOWS THE BIG BOARD'S EFFORTS HAVEN'T BEEN A TOTAL SUCCESS YET SOME BIG PROGRAM TRADERS CONTINUE TO PREFER EXECUTING TRADES IN OVERSEAS MARKETS THAT DON'T REQUIRE AS MUCH DISCLOSURE ABOUT THE IDENTITIES OF INVESTORS THERE ISN'T ANY WAY THE EXCHANGE WILL BE ABLE TO KEEP ALL THESE PROGRAM TRADES HERE SAID ED LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY & CO A UNIT OF GENERAL ELECTRIC CO THE ANONYMITY OF DOING IT OVERSEAS IS THE WHOLE KEY THE BIG BOARD HAS PREVIOUSLY CALLED ITS PROGRAMTRADING CROSSING SESSION A MARKET SUCCESS THAT HAS REPATRIATED A SUBSTANTIAL AMOUNT OF ACTIVITY THAT OCCURRED OVERSEAS THE EXCHANGE DIDN'T COMMENT ON FRIDAY COMPUTERASSISTED PROGRAM TRADING IS STILL A BIG FACTOR IN THE MARKET IT ACCOUNTED FOR 128 OF AVERAGE DAILY VOLUME ON THE BIG BOARD IN THE LATEST WEEK ACCORDING TO THE EXCHANGE'S DATA THE BIGGEST PROGRAM TRADERS WERE MORGAN STANLEY GROUP INC 234 MILLION SHARES TRADED FOLLOWED BY NOMURA SECURITIES COOPER NEFF & ASSOCIATES SUSQUEHANNA INVESTMENT GROUP AND KIDDER IT'S UNCLEAR WHETHER THE SURGE IN OVERSEAS PROGRAM TRADING WAS A ONETIME EVENT BECAUSE THE SURGE OCCURRED NEAR THE END OF THE MONTH TRADERS SUSPECT A SINGLE FIRM EXECUTED A LARGE PROGRAM TRADE OVERSEAS FOR A CUSTOMER SEEKING TO ADJUST A PORTFOLIO 9309070115 930907 EC COMMISSION PROBES PLANNED JOINT PURCHASE OF ITALIAN GLASS FIRM SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT WILL OPEN AN INDEPTH EXAMINATION INTO THE PROPOSED ACQUISITION OF ITALIAN GLASS MAKER SOCIETA ITALIANA VETRO SPA BY PILKINGTON PLC AND TECHINT FINANZIARIA IN A STATEMENT THE COMMISSION SAID THE PROPOSED PURCHASE WOULD LEAD TO FURTHER CONCENTRATION IN VARIOUS FLATGLASS MARKETS BY REDUCING THE NUMBER OF MAJOR EC SUPPLIERS TO FIVE THE COMMISSION DECIDED IT MUST CONTINUE ITS INVESTIGATION TO FULLY ASSESS THE IMPACT ON THE COMPETITION IN THE VARIOUS MARKETS AFFECTED UNDER THE TERMS OF THE AGREEMENT REPORTED TO BE VALUED AT 1324 MILLION IN JULY PILKINGTON OF BRITAIN AND TECHINT OF ITALY ARE EACH TO ACQUIRE 50 OF SIV'S SHARES PILKINGTON PRODUCES FLAT GLASS FOR THE AUTO SECTOR AND GENERAL TRADE SIV ALSO PRODUCES FLAT GLASS FOR THE CAR INDUSTRY TECHINT IS A STEELPRODUCTION AND ENGINEERING GROUP UNDER EC MERGER LAW THE COMMISSION HAS ONE MONTH TO EXAMINE AGREEMENTS AFTER WHICH IT MUST LAUNCH A DEEPER FOURMONTH PROBE IF IT HAS CONCERNS ABOUT A TRANSACTION ON COMPETITION GROUNDS THE COMMISSION CAN BLOCK OR ALTER AGREEMENTS THAT CREATE OR STRENGTHEN DOMINANT POSITIONS ON THE EC MARKET 9309070114 930907 INTERNATIONAL MEXICO CLEARS CREATION OF 5 BANKS IN EFFORT TO SPUR MARKET REFORMS BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN GOVERNMENT AUTHORIZED THE CREATION OF FIVE BANKS CONTINUING ITS OVERHAUL OF THE FINANCIAL SECTOR AND ATTEMPTING TO STIMULATE THE ECONOMY BY NUDGING INTEREST RATES DOWN THE GOVERNMENT OF PRESIDENT CARLOS SALINAS DE GORTARI HAS PRIVATIZED MEXICO'S BANKS OVER THE PAST TWO YEARS REVERSING THE TRAUMATIC NATIONALIZATION THAT A PREDECESSOR DECREED IN THE EARLY 1980S BUT THERE ARE STILL JUST 18 BANKS IN MEXICO SO CREATING FIVE MORE BANKS WILL FURTHER THE GOVERNMENT'S ATTEMPT TO OPEN THE MARKET TO MORE COMPETITORS AND FORCE EXISTING BANKS TO OPERATE MORE EFFICIENTLY UNDISCIPLINED LENDING POLICIES HAVE GIVEN ALL MEXICAN BANKS HIGH LEVELS OF NONPERFORMING LOANS AND SOME OF THE SMALLER BANKS ARE VULNERABLE ENOUGH THAT MORE COMPETITION COULD FORCE SOME TO MERGE OR LET THEMSELVES BE ACQUIRED BUT THE RESULT OF COMPETITION IS EXPECTED TO BE A HEALTHIER MEXICAN BANKING INDUSTRY THAT IS BETTER PREPARED FOR MORE INVOLVEMENT BY FOREIGN BANKS ONE OF THE PROVISIONS OF THE NORTH AMERICAN FREE TRADE AGREEMENT THERE WILL BE A CONSOLIDATION IN THE MEXICAN FINANCIAL SECTOR SAID RAFAEL BELLO A MORGAN STANLEY SECURITIES ANALYST FOLLOWING LATIN AMERICAN BANKS I THINK THE STRONGEST BANKS WILL CONTINUE TO BE THERE BUT THE SMALLER BANKS WILL PROBABLY SEE SOME CONSOLIDATION ADDING BANKS COULD LET THE GOVERNMENT USE COMPETITION TO DRIVE DOWN INTEREST RATES WHICH ARE SO HIGH THAT MANY BUSINESSES PAY 25 TO 40 A YEAR ON LOANS EVEN THOUGH INFLATION HAS FALLEN SHARPLY TO LESS THAN 10 A YEAR THE GOVERNMENT HAS SAID IT WOULD WELCOME LOWER INTEREST RATES BECAUSE ECONOMIC GROWTH HAS STALLED AND WILL PROBABLY TOTAL ABOUT 2 THIS YEAR MR BELLO CAUTIONED THOUGH THAT ANY DROP IN RATES PROBABLY WON'T HAPPEN QUICKLY BECAUSE THE GROUPS FORMING THE NEW BANKS ARE BEING DRAWN TO THE MARKET BY THE HIGH INTEREST RATES AND WON'T BE IN ANY HURRY TO CUT THEIR MARGINS TWO OF THE INVESTOR GROUPS INCLUDE WELLKNOWN AND WELLCONNECTED INVESTORS ONE OF THE NEW BANKING GROUPS CALLED BANCO INBURSA IS LED BY CARLOS SLIM HELU CHAIRMAN OF THE COMPANY THAT CONTROLS TELEFONOS DE MEXICO SA THE MEXICAN TELEPHONE MONOPOLY ANOTHER GROUP CALLED BANCO INTERACCIONES IS LED BY CARLOS HANK RHON SON OF MEXICO'S POWERFUL AND WEALTHY AGRICULTURE MINISTER A THIRD GROUP BANCO QUADRUM IS LED BY THE PRINCIPAL SHAREHOLDERS OF THE GRUPO QUADRUM FINANCIAL SERVICES COMPANY THE TWO OTHER NEW BANKING OPERATIONS BANCO MIFEL AND BANCO PROMOTOR DEL NORTE INVOLVE GROUPS OF LESS PROMINENT INVESTORS SEPARATELY THE MEXICAN GOVERNMENT ANNOUNCED SOME MODESTLY ENCOURAGING ECONOMIC NEWS AT A BANKING CONVENTION IN PUERTO VALLARTA OVER THE WEEKEND THE GOVERNMENT DISCLOSED THAT INTERNATIONAL RESERVES ROSE 404 BILLION OR MORE THAN 20 IN THE FIRST EIGHT MONTHS OF 1993 TO 226 BILLION AS FOREIGN FUNDS CONTINUED TO FLOW INTO THE COUNTRY IN ADDITION THE CURRENT ACCOUNT DEFICIT THE BROADEST MEASURE OF A NATION'S TRADE NARROWED 4 TO ABOUT 10 BILLION IN THE FIRST HALF OF 1993 COMPARED WITH THE 1992 FIRST HALF PRESIDENT SALINAS ALSO SAID AT THE CONFERENCE THAT HE WOULD NOT RELAX HIS TIGHT GOVERNMENT SPENDING POLICIES TO STIMULATE THE ECONOMY DESPITE PRESSURE FROM BUSINESS LEADERS AND DESPITE HIS PARTY'S DESIRE TO HAVE A HEALTHY ECONOMY BY NEXT YEAR'S PRESIDENTIAL ELECTIONS 9309070113 930907 TECHNOLOGY ADVANCED MICRO STOCK SINKS 65 INTEL CLONE CITED BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL SUNNYVALE CALIF ADVANCED MICRO DEVICES INC'S STOCK SANK 2 A SHARE OR 65 FRIDAY AFTER THE COMPANY ISSUED CONFUSING ADMISSIONS THAT AN ALLEGEDLY CLEANROOM CLONE OF INTEL CORP'S BESTSELLING MICROPROCESSOR ACTUALLY BORROWED HEAVILY FROM COPYRIGHTED INTEL SOFTWARE IN A PREPARED STATEMENT ISSUED LATE LAST THURSDAY ADVANCED MICRO SAID ENGINEERS DEVELOPING A SOCALLED CLEANROOM VERSION OF INTEL'S 486 CHIP HAD BEEN EXPOSED TO MICROCODE OR EMBEDDED SOFTWARE INSTRUCTIONS USED IN INTEL'S PREDECESSOR 386 CHIP THE STATEMENT ADDED THAT SOME PORTION OF THE 386 MICROCODE WAS PROBABLY INCORPORATED IN ADVANCED MICRO'S CLEAN MICROPROCESSOR CALLED THE AM486SX IN A CLEANROOM CLONE ENGINEERS SUPPOSEDLY START FROM SCRATCH IN THEIR EFFORTS TO COPY A CHIP RECEIVING NO PATENTED OR COPYRIGHTED MATERIAL ON FRIDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ADVANCED MICRO STOCK CLOSED AT 29 ON VOLUME OF MORE THAN 41 MILLION ADVANCED MICRO ANNOUNCED THE AM486SX ON JULY 6 DECLARING IT REPRESENTED AN INDEPENDENCE DAY FROM INTEL A MONTH EARLIER A CALIFORNIA COURT OF APPEALS HAD RULED THAT ADVANCED MICRO WASN'T ENTITLED TO USE INTEL'S 386 MICROCODE UNDER A PREVIOUS TECHNOLOGYSHARING AGREEMENT ANALYSTS EXPRESSED CONCERN FRIDAY THAT ADVANCED MICRO DIDN'T DISCLOSE ON JULY 5 THAT ITS CLEANROOM CHIP WAS CONTAMINATED WITH 386 MICROCODE MOREOVER IN A CONFERENCE CALL ON FRIDAY WJ SANDERS III ADVANCED MICRO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MADE CLEAR THAT THE EXPOSURE OF THE NEW CHIP'S ENGINEERING TEAM TO THE 386 MICROCODE WASN'T ACCIDENTAL CONTRARY TO THE TONE OF THE PREPARED STATEMENT HE SAID THAT THE TEAM WAS GIVEN THE 386 MICROCODE TO HELP SPEED UP THE DEVELOPMENT OF THE AM486SX MR SANDERS SAID ADVANCED MICRO WILL LAUNCH A RENEWED EFFORT TO DEVELOP CLEAN CHIPS THAT DON'T CONTAIN ANY INTEL MICROCODE IN THE CONFERENCE CALL MR SANDERS SAID NO ATTEMPT HAD BEEN MADE TO MISLEAD CUSTOMERS OR ANALYSTS ABOUT THE AM486SX CHIP AND ITS USE OF INTEL 386 MICROCODE BUT A SPOKESMAN SAID HE HAD NO COMMENT ON WHY THE USE OF INTEL'S MICROCODE WASN'T DISCLOSED IN THE JULY 6 ANNOUNCEMENT WHEN ADVANCED MICRO KNEW A COURT HAD RULED IT WASN'T ENTITLED TO THE MICROCODE AN INTEL SPOKESWOMAN SAID ADVANCED MICRO'S CONTINUED USE OF INTEL'S MICROCODE SHOWS THAT ADVANCED MICRO CHOOSES TO TAKE LEGAL RISKS RATHER THAN DEVELOP PRODUCTS INDEPENDENT OF INTEL'S INTELLECTUAL PROPERTY ADVANCED MICRO HAS BEEN SELLING ANOTHER LINE OF 486 CHIPS THAT IT HAS ALWAYS CONCEDED CONTAINED COPIES OF INTEL MICROCODE AN ADVANCED MICRO SPOKESMAN SAID THE COMPANY PLANS TO EVENTUALLY SHIP THREE DIFFERENT 486 VERSIONS THE ONE WITH A COMPLETE COPY OF INTEL'S MICROCODE THE AM486SX AS A KIND OF HYBRID AND A TRUE CLEANROOM CLONE MR SANDERS SAID ADVANCED MICRO EXPECTS TO SHIP 150000 486 CHIPS IN THE CURRENT QUARTER AND 400000 IN THE FOURTH PERIOD SALES OF 486 CLONES ARE EXPECTED TO FUEL SHARPLY HIGHER EARNINGS FOR ADVANCED MICRO NEXT YEAR ADVANCED MICRO CLAIMS IT HAS THE RIGHT TO COPY INTEL SOFTWARE AND CHIP DESIGNS UNDER THE DISPUTED TECHNOLOGYSHARING AGREEMENT A FEDERALCOURT TRIAL TO DETERMINE ADVANCED MICRO'S RIGHTS WILL BEGIN NOV 1 THE CALIFORNIA SUPREME COURT SAID LAST WEEK IT WILL REVIEW THE COURT OF APPEALS RULING THAT ADVANCED MICRO WASN'T ENTITLED TO 386 MICROCODE UNDER STATE LAW A PROCESS THAT WILL TAKE UP AS LONG AS A YEAR IF THE COMPANY LOSES BOTH CASES IT WILL BE EXPOSED TO CLAIMS OF DAMAGES BY INTEL EXPECTED TO EXCEED 1 BILLION 9309070112 930907 SPAIN'S ACCOUNT DEFICIT NARROWED 64 IN MAY SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S CURRENT ACCOUNT DEFICIT NARROWED 64 IN MAY TO 97 BILLION PESETAS 7242 MILLION FROM 267 BILLION PESETAS IN MAY 1992 THE BANK OF SPAIN SAID THE ACCUMULATED CURRENT ACCOUNT DEFICIT NARROWED 41 TO 684 BILLION PESETAS IN THE FIRST FIVE MONTHS OF THE YEAR FROM 115 TRILLION PESETAS IN THE SAME PERIOD OF THE PREVIOUS YEAR SPAIN'S TRADE DEFICIT NARROWED 37 TO 186 BILLION PESETAS IN MAY FROM 294 BILLION PESETAS A YEAR AGO THE BANK SAID THE ACCUMULATED TRADE DEFICIT NARROWED 45 TO 770 BILLION PESETAS IN THE FIRST FIVE MONTHS OF 1993 FROM 140 TRILLION PESETAS THE SAME PERIOD A YEAR EARLIER THE SHARPLY IMPROVED TRADE BALANCE WAS THE MAIN REASON FOR THE NARROWING IN THE CURRENT ACCOUNT DEFICIT IN MAY THE BANK SAID EXPORTS ROSE 23 TO 693 BILLION PESETAS IN MAY FROM 564 BILLION PESETAS A YEAR EARLIER WHILE IMPORTS EDGED UP 23 TO 879 BILLION PESETAS FROM 859 BILLION PESETAS THE CENTRAL BANK REPORTED 9309070111 930907 LETTERS TO THE EDITOR RECYCLING BECOMING A MARKET FORCE IN RESPONSE TO YOUR AUG 3 PAGE ONE ARTICLE ON RECYCLING IN SEATTLE YOU ONLY MENTIONED THE ENVIRONMENTAL BENEFITS OF RECYCLING ONCE RECYCLING CONSERVES RESOURCES AND ENERGY AND REDUCES OUR IMPACT ON THE EARTH'S NATURAL SYSTEMS MORE RECYCLING MEANS LESS CLEARCUTTING FEWER OIL SPILLS LESS ACID RAIN LESS STRIP MINING AND REDUCED EMISSIONS OF GREENHOUSE GASES THERE IS MUCH MORE TO RECYCLING THAN JUST SAVING LANDFILL SPACE CLEARLY RECYCLING PROVIDES A PUBLIC BENEFIT THAT MERITS SOME PUBLIC INVESTMENT YOUR ECONOMIC ANALYSIS OF SEATTLE'S RECYCLING PROGRAMS WAS SUPERFICIAL FOR INSTANCE YOU POINT OUT THAT HAULERS MUST PAY 25 A TON TO GET RID OF WASTE PAPER NO COMPARISON IS MADE TO THE NORMAL COST OF DISPOSING OF GARBAGE SINCE TIPPING FEES OF AROUND 80 A TON ARE QUITE COMMON IT MAY BE THAT WASTE PAPER RECYCLING IS STILL SAVING MONEY FOR SEATTLE'S RESIDENTS YOUR ARTICLE STATED THAT SEATTLE PROBABLY CAN'T MEET ITS 60 RECYCLING TARGET WITHOUT DRACONIAN STEPS LIKE FINING NONPARTICIPANTS NO ONE CONSIDERS FINES ON LITTERING OR ILLEGAL PARKING TO BE DRACONIAN DESPITE OUR LOVE AFFAIR WITH CARS WE SET SPEED LIMITS AND TAKE THE DRACONIAN STEP OF FINING NONPARTICIPANTS WE NEED TO RECONSIDER OUR LOVE AFFAIR WITH THE DISPOSABLE SOCIETY THE ANSWER TO THE THEOLOGICAL DILEMMA OF PAPER OR PLASTIC IS TO BRING YOUR OWN REUSABLE BAG OF COURSE THERE ARE LOGISTIC AND MARKETBASED PROBLEMS IN MEETING AGGRESSIVE RECYCLING TARGETS HATS OFF TO SEATTLE FOR LEADING THE WAY NOW THAT MARKET FORCES HAVE BEGUN TO PUSH RECYCLING FROM THE ENVIRONMENTALIST FRINGE TO THE MAINSTREAM OF WASTE MANAGEMENT RECYCLING PROGRAMS ARE IMPORTANT NEWS FOR AMERICAN BUSINESS THE DRIVING FORCE IS THE COST OF WASTE DISPOSAL NEW STANDARDS FOR LANDFILLS EMBODIED IN RCRA SUBTITLE D ARE DESIGNED TO AVOID POLLUTION PROBLEMS THAT HAVE LEFT THE PUBLIC TO PAY BILLIONS OF DOLLARS IN CLEANUP COSTS FOR CONTAMINATED LANDFILL SITES AS LANDFILLS BEGIN TO RECOGNIZE THE FULL COSTS OF POLLUTION CONTROL AND EVENTUAL CLOSURE THE FEES FOR DISPOSAL RISE SHARPLY AND RECYCLING BECOMES AN ECONOMICAL ALTERNATIVE AMERICAN CONSUMERS BACK RECYCLING AND SHOW A PREFERENCE FOR RECYCLED CONTENT PRODUCTS BECAUSE OF THE SAVINGS ON RESOURCE USE DISPOSAL COSTS AND POLLUTION CLEANUP MISINFORMED CRITICS BLAME RECYCLING PROGRAMS AND CITE ANECDOTAL EVIDENCE THAT THE PROGRAMS DO NOT WORK EVEN AS WASTE MANAGEMENT PLANNERS LEARN THAT THEY DO THE TRUTH IS THAT PUBLIC COST SAVINGS ON DISPOSAL WILL CONTINUE TO DRIVE GROWTH IN RECYCLING AND DICTATE SHIFTS IN AMERICAN INDUSTRY YOU INDICATE THAT BIG WASTE GENERATORS LIKE SMALL BUSINESSES HAVE SHOWN ONLY TEPID INTEREST IN RECYCLING OR HAVE REBELLED AND YOU CITE A POLL OF 2000 BUSINESSES THAT SHOWED BARELY HALF OF SEATTLE BUSINESSES RECYCLED WE'RE UNAWARE OF A POLL CONDUCTED HERE RECENTLY THAT PRODUCED THE RESULTS YOU CLAIMED AND IN FACT SURVEYS WE COMPLETED RECENTLY INVOLVING 2147 SEATTLE BUSINESSES OF ALL TYPES AND SIZES SHOWED THAT 1746 813 WERE RECYCLING ONE OR MORE MATERIALS CAN THAT HONESTLY BE REFERRED TO AS TEPID INTEREST OR REBELLION CONTRARY TO THE IMPRESSION YOU GIVE BUSINESS RECYCLING IS GROWING IN SEATTLE AS MORE COMPANIES ARE FINDING THAT IT IS LESS EXPENSIVE TO PAY A RECYCLING COMPANY TO COLLECT THINGS LIKE CARDBOARD THAN TO PAY FOR THE SAME SERVICE FROM THEIR GARBAGE HAULER THE RECYCLING ZEALOTS IN SEATTLE ARE ECONOMICALLY AND INTELLECTUALLY DEPRIVED AND BLITHELY IGNORE MARKET FACTORS THEY HAVE A BELIEF THAT RECYCLING IS ENVIRONMENTALLY CORRECT AND THEREFORE WE SHOULD DO IT THEY DO NOT REALIZE OR REFUSE TO RECOGNIZE THAT MOST RECYCLING INTENSIFIES ENVIRONMENTALLY DAMAGING ENERGY EXPENDITURES THE ULTIMATE ENVIRONMENTAL TRASHING OF THE PLANET FOR INSTANCE A LOOK AT THE RECYCLING OF NEWSPRINT SHOWS THAT IF WE USE RECYCLED PULP IN PREFERENCE TO VIRGIN PULP WE MUST IMPORT AT THE VERY LEAST FIVE BARRELS OF OIL PER TON OF RECYCLED PAPER THAT ACTUALLY IS MADE INTO RECYCLED CONTENT NEWSPRINT THIS IS THE CONSEQUENCE OF THE VERY ENERGYINTENSIVE COLLECTION COSTS MORE THAN TWO BARRELS OF OIL PER TON OF PAPER COLLECTED THE COST OF TRANSPORTING THE BALED PAPER TO THE NEAREST NEWSPRINT MILL ONE AND ONEHALF BARRELS OF OIL IN THE ST PAULMINNEAPOLIS AREA AND THE LOW RECOVERY OF PULPED FIBER FROM THE DEINKING PROCESS FULLY ONETHIRD OF THE PAPER THAT IS CAREFULLY COLLECTED BALED AND TRANSPORTED GOES DIRECTLY TO A LANDFILL FROM THE DEINKING PROCESS AS A SLUDGE THAT TAKES ALONG AN EQUAL WEIGHT OF WATER I WOULD LIKE TO CLARIFY A STATEMENT IN YOUR AUG 4 ARTICLE SMALL BUSINESSES GRAPPLE WITH EXPENSE OF SAVING EARTH ATTRIBUTED TO A SPOKESPERSON FOR THE NATIONAL RECYCLING COALITION YOUR ARTICLE STATES THAT SINCE 1990 EIGHT STATES AND THE DISTRICT OF COLUMBIA HAVE IMPLEMENTED COMMERCIAL AND INSTITUTIONAL RECYCLING LAWS INCREASING THE NUMBER OF STATES WITH SUCH REQUIREMENTS TO 40 THE ATTRIBUTED STATEMENT WAS CORRECT IN SAYING THAT EIGHT STATES HAVE COMMERCIAL RECYCLING LAWS HOWEVER 40 STATES HAVE PASSED COMPREHENSIVE LAWS REQUIRING COMMUNITIES TO RECYCLE MATERIALS GENERATED BY HOUSEHOLDS PLACING THE BURDEN ON MUNICIPAL AND STATE GOVERNMENTS TO DEVELOP PROGRAMS AND MARKETS FOR THESE NEWSPAPERS CANS BOTTLES AND PLASTICS AT THIS POINT IT IS NOT REALLY ENTREPRENEURS WHO ARE PICKING UP THE TAB FOR RECYCLING MANDATES AS YOUR ARTICLE INDICATES BUT GOVERNMENTS THAT ARE STRUGGLING TO COMPLY WITH LAWS IMPOSING SOURCE SEPARATION MANDATES WITHOUT REQUIRING INDUSTRY TO INCREASE ITS USE OF RECOVERED MATERIALS AS STATES TRY TO REACH RECYCLING GOALS IN THE NEXT FEW YEARS THEY WILL TURN TO THE BUSINESS COMMUNITY TO SHARE THE RESPONSIBILITY FOR DIVERTING WASTES FROM LANDFILLS AND INCINERATORS A FEW BUSINESSES STRUGGLING WITH THE LOGISTICS OF COLLECTING RECYCLABLES AS YOUR ARTICLE DEPICTED DOES NOT REFLECT THE SAVINGS MANY COMPANIES HAVE REALIZED BY RECYCLING MATERIALS THAT MAKE ECONOMIC SENSE AND BUYING RECYCLED MATERIALS AND PRODUCTS THAT COST LESS THAN THEIR VIRGIN COUNTERPARTS AS WASTE DISPOSAL COSTS CONTINUE TO RISE IT WILL BE THE BUSINESSES THAT HAVE NOT LEARNED HOW TO USE RECYCLING TO THEIR ADVANTAGE THAT WILL BE LEFT HOLDING THE BAG 9309070110 930907 INTERNATIONAL RENAULT VOLVO UNVEIL PROPOSAL ON THEIR MERGER FRENCHSWEDISH COMPANY TO BE AMONG LARGEST OF WORLD'S CAR MAKERS BY STEPHEN D MOORE AND TIMOTHY AEPPEL STAFF REPORTERS OF THE WALL STREET JOURNAL PARIS RENAULT SA OF FRANCE AND SWEDEN'S AB VOLVO UNVEILED A LONGAWAITED MERGER PLAN THAT COULD CREATE A COMPANY BETTERPOSITIONED TO SURVIVE IN EUROPE'S INCREASINGLY COMPETITIVE CAR MARKET RENAULT AND VOLVO PLAN TO MERGE THEIR CAR AND TRUCK DIVISIONS FINANCIAL UNITS AND CERTAIN OF RENAULT'S INDUSTRIAL OPERATIONS UNDER A JOINTLY OWNED HOLDING COMPANY PROVISIONALLY NAMED RENAULTVOLVO RVA THE NEW GROUP HAD PRO FORMA 1992 SALES OF 241 BILLION FRENCH FRANCS 4165 BILLION AND NEARLY 200000 EMPLOYEES WORLDWIDE MAKING IT EUROPE'S SECONDBIGGEST CAR MAKER AND THE WORLD'S NO 6 AUTO CONCERN MEASURED IN ANNUAL REVENUE OFFICIALS SAID VOLVO TRADITIONALLY IS STRONG IN BRITAIN AND NORTHERN EUROPE WHILE RENAULT'S STRONGHOLDS ARE FRANCE SPAIN ITALY AND PORTUGAL THE COMBINED COMPANY WOULD HOLD 12 OF THE EUROPEAN AUTO MARKET RANKING IT TIED FOR THIRD BUT THE IMMEDIATE IMPACT IN THE US WOULD BE LESS DRAMATIC VOLVO CURRENTLY HAS 05 OF THE US MARKET WHILE RENAULT PULLED OUT THE MARKET COMPLETELY IN THE LATE 1980S THE TWO CAR MAKERS HAVE BEEN LINKED BY CROSSSHAREHOLDINGS AND A BROAD STRATEGIC ALLIANCE SINCE 1990 THE MERGER WHICH WILL BEGIN OPERATIONS JAN 1 REMAINS SUBJECT TO APPROVAL BY RENAULT DIRECTORS VOLVO SHAREHOLDERS SWEDISH UNIONS AND VARIOUS POLITICAL AND REGULATORY AUTHORITIES BUT THOSE CLEARANCES MAY BE MERE FORMALITIES FRENCH AND SWEDISH AUTHORITIES RESPONDED ENTHUSIASTICALLY TO THE PROPOSAL YESTERDAY FRENCH INDUSTRY MINISTER GERARD LONGUET PLAYED A SURPRISINGLY PROMINENT ROLE AT THE CROWDED NEWS CONFERENCE AT RENAULT'S HEADQUARTERS ON THE OUTSKIRTS OF PARIS HE LAUDED THE MERGER PACT AS A SIGNAL EVENT FOR EUROPEAN INDUSTRY THE LIKES OF WHICH ONLY HAPPENS ONCE EVERY FIVE OR 10 YEARS RENAULT CHAIRMAN LOUIS SCHWEITZER AND VOLVO CHAIRMAN PEHR GYLLENHAMMAR PRAISED MR LONGUET AND OTHER FRENCH GOVERNMENT OFFICIALS FOR THEIR SUPPORT TOP EXECUTIVES AT BOTH COMPANIES HAVE PRAISED THE ALLIANCE SUGGESTING THAT COOPERATION ON ACTIVITIES SUCH AS PARTS ACQUISITION AND MODEL PLANNING HAS BEEN RELATIVELY EASY TO ACHIEVE BUT SOME IN THE INDUSTRY SAID THERE HAVE BEEN PLENTY OF PROBLEMS MIDLEVEL MANAGERS AT BOTH COMPANIES OFTEN BALKED AT HAVING TO SHARE RESPONSIBILITIES THEY SAID SOME EXPERTS CONTEND IT WILL TAKE YEARS FOR THE TWO SIDES TO IRON OUT THE PROBLEMS DANIEL T JONES A BUSINESS PROFESSOR AT THE CARDIFF BUSINESS SCHOOL IN WALES SAID IT COULD EASILY TAKE 10 YEARS FOR THE TWO COMPANIES TO FULLY SORT OUT THE EFFECTS OF THE MERGER BUT ONCE THEY DO HE ADDED IT WILL NOT ONLY HELP RENAULT REACH NORTHERN EUROPE BUT NORTH AMERICA AS WELL RENAULT ALREADY HAS SHOWN IT CAN COMPETE INTERNATIONALLY SAID MR JONES FOR INSTANCE IT HAS IMPROVED QUALITY AND EFFICIENCY MARKEDLY TO BECOME ONE OF THE TOP EXPORTERS TO GERMANY DURING ITS RECENT AUTO BOOM HOWEVER AS THE AUTO INDUSTRY CONTINUES TO BECOME MORE GLOBAL RENAULT MUST EXPAND INTO NORTH AMERICA IF IT IS TO RETAIN ITS LEADERSHIP ROLE HE SAID KARL LUDVIGSEN A LONDONBASED AUTO CONSULTANT SAID VOLVO DEALERS IN THE US ARE EAGER TO BOLSTER THEIR BUSINESS BY EXPANDING THE RANGE OF MODELS THEY SELL AND SELECT RENAULT MODELS BADGED AS VOLVOS COULD BE A SOLUTION MR SCHWEITZER HOWEVER EMPHASIZED YESTERDAY THAT RENAULT HAS NO INTENTION OF SEEKING TO REENTER THE US MARKET IN THE NEAR FUTURE OUR FIRST PRIORITY IS TO BE STRONG IN EUROPE THE RENAULT CHAIRMAN SAID IN A RECENT INTERVIEW UNDER THE TANGLED CORPORATE STRUCTURE ENVISIONED IN THE MERGER PROPOSAL THE FRENCH GOVERNMENT WOULD WIND UP WITH ROUGHLY 65 OF THE NEW CAR AND TRUCK COMPANY DIRECTLY AND INDIRECTLY WHILE VOLVO WOULD OWN 35 THOSE RELATIVE STAKES REFLECT THE VALUE OF ASSETS EACH SIDE CONTRIBUTED TO THE MERGED RENAULTVOLVO OFFICIALS SAID OWNERSHIP WOULD CHANGE CONSIDERABLY ONCE THE FRENCH GOVERNMENT COMPLETES ITS PROMISED PRIVATIZATION OF RENAULT MR LONGUET THE FRENCH INDUSTRY MINISTER ACKNOWLEDGED THAT THE FRENCH GOVERNMENT MIGHT SELL ITS ENTIRE 47 DIRECT STAKE IN THE MERGED COMPANY THE SALE ISN'T LIKELY BEFORE THE SECOND HALF OF NEXT YEAR BUT DEPENDING ON MARKET CONDITIONS IT PROBABLY WOULD BE COMPLETED BEFORE JUNE 1995 HE SAID YET THE REAL OWNERSHIP CONTROL OF THE VENTURE WOULD BE WIELDED THROUGH A SECOND SEPARATE HOLDING COMPANY KNOWN AS RVC RVC WOULD CONTROL 35 OF RENAULTVOLVO WITH RENAULT HOLDING 51 AND VOLVO 49 OF RVC AS PART OF PRIVATIZATION THE FRENCH GOVERNMENT PROBABLY ALSO WOULD SELL ITS STAKE IN RVC TO A SELECT GROUP OF FRENCH INSTITUTIONAL INVESTORS OFFICIALS SAID BUT BY CONTRAST WITH RENAULTVOLVO WHICH WOULD BE PUBLICLY TRADED FOLLOWING PRIVATIZATION RVC WOULD REMAIN PRIVATE VOLVO AND THE FRENCH INSTITUTIONAL HOLDERS WOULD HAVE A RIGHT OF FIRST REFUSAL TO BUY THE OTHER'S STAKE EFFECTIVELY THWARTING POTENTIAL HOSTILE TAKEOVER ATTEMPTS MATTERS DEEMED OF SPECIAL IMPORTANCE WOULD REQUIRE UNANIMITY AMONG RVC'S DIRECTORS FOR PASSAGE RENAULT'S MR SCHWEITZER ADDED THAT AS PART OF THE PRIVATIZATION PROGRAM THE FRENCH GOVERNMENT PROBABLY ALSO WOULD ADOPT A SOCALLED GOLDEN SHARE PROVISION FOR THE PUBLICLY TRADED RENAULTVOLVO STOCK UNDER SUCH AN ARRANGEMENT THE GOVERNMENT COULD REVOKE VOTING RIGHTS OF A HOLDER BREACHING CERTAIN OWNERSHIP THRESHOLDS AND EVEN FORCE THE INVESTOR TO SELL THE STAKE UNDER CERTAIN CIRCUMSTANCES MEANWHILE THE DEAL IS LIKELY TO REQUIRE APPROVAL FROM THE EUROPEAN COMMUNITY UNDER A LAW GRANTING THE EC COMMISSION JURISDICTION OVER LARGE MERGERS OFFICIALS SAID A COMMISSION SPOKESMAN SAID THE EC HAD NOT YET BEEN NOTIFIED OF THE DEAL AND IT WAS TOO EARLY TO SAY WHETHER ANY COMPETITION PROBLEMS MIGHT ARISE UNDER EC LAW DOUGLAS LAVIN IN FRANKFURT CONTRIBUTED TO THIS ARTICLE 9309070109 930907 COMMODITIES ACCESS THE AFTERHOURS SYSTEM BEGUN IN JUNE CATCHES ON WITH TRADERS OF CRUDEOIL CONTRACTS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ACCESS THE AFTERHOURS ELECTRONIC TRADING SYSTEM LAUNCHED A LITTLE OVER TWO MONTHS AGO HAS CAUGHT ON WITH CRUDEOIL TRADERS BUT HAS HAD LITTLE IMPACT IN THE SMALLER ENERGYPRODUCTS MARKET DEALERS SAY MOST OF THE AFTERHOURS TRADING TAKES PLACE BETWEEN 5 AND 8 PM LESS THAN 15 OF TRADES OCCUR FROM 8 PM TO 4 AM RECENT DATA SHOW THE SCREENBASED SYSTEM LAUNCHED JOINTLY JUNE 24 BY THE NEW YORK MERCANTILE EXCHANGE AMERICAN TELEPHONE & TELEGRAPH CO AND TASK MANAGEMENT INC IS PERFORMING BETTER THAN MANY TRADERS HAD EXPECTED IN PART BECAUSE OF RENEWED VOLATILITY IN ENERGY FUTURES PRICES THE SYSTEM IS BEING USED BY SOME 80 SUBSCRIBERS IN 15 DIFFERENT CITIES ACROSS THE NATION I DON'T THINK WE WERE EXPECTING ANYTHING GREAT SO OUR LOW EXPECTATIONS ARE BEING MET SAYS JOE MILLER A SENIOR ENERGY BROKER WITH LEHMAN BROTHERS IN NEW YORK OTHER TRADERS SAY THEY TOO ARE WARMING UP TO THE SYSTEM ACCESS HAS BENEFITED FROM SOME INCREASE IN VOLATILITY IN THAT TRADERS WHO WISH TO REDUCE EXPOSURE OVERNIGHT TO UNFAVORABLE PRICE MOVES HAVE THIS VEHICLE AT THEIR FINGERTIPS SAYS ANDREW DICKSON DIRECTOR OF TRADING AT GSC ENERGY A TRADING HOUSE BASED IN ATLANTA MOST OF THE ACTIVITY HAS BEEN IN CRUDE OIL MR DICKSON NOTES FOLKS ARE TALKING A WAITANDSEE ATTITUDE AS FAR AS ITS VIABILITY AS A HEDGE AND SPECULATIVE VEHICLE FOR PRODUCTS SUCH AS UNLEADED GASOLINE AND HEATING OIL FUTURES HE ADDS THE OVERNIGHT PRODUCTS MARKET IS STILL FAR TOO THIN OR ILLIQUID TO ATTRACT HEDGERS AND SPECULATORS IN PRODUCTS THE BIDOFFER SPREADS ARE TOO WIDE TO EXECUTE AN ORDER AT A COMPETITIVE PRICE MR DICKSON SAYS BUT DATA FROM THE NEW YORK MERCANTILE EXCHANGE THE WORLD'S LARGEST ENERGY FUTURES MARKET SHOW THAT MONTHLY VOLUME HAS BEEN PICKING UP IN PRODUCTS IN THE SECOND FULL MONTH OF OPERATION A CUMULATIVE 4269 CONTRACTS IN HEATING OIL FUTURES WERE TRADED MORE THAN DOUBLE THE 2090 IN THE FIRST MONTH UNLEADED GASOLINE FUTURES CONTRACTS ALSO DOUBLED TO 5280 FROM 2608 CRUDE OIL FUTURES JUMPED TO 43031 IN THE SECOND MONTH FROM 25311 IN THE FIRST ON JULY 15 WHEN THE MARKET WAS RIFE WITH RUMORS THAT THE UNITED NATIONS MIGHT LIFT ITS OIL EXPORT BAN AGAINST IRAQ A RECORD 4419 CRUDE OIL FUTURES TRADED HANDS OVER ACCESS NEW YORK MERCANTILE OFFICIALS SAY THAT THEIR EXPECTATIONS PARTICULARLY FOR CRUDE FUTURES WHERE DAILY VOLUME HAS AVERAGED WELL OVER 1000 CONTRACTS HAVE BEEN EXCEEDED BY THE SYSTEM WE DIDN'T EXPECT VOLUME TO BE THIS HIGH THIS EARLY SAYS AN EXCHANGE SPOKESWOMAN THE BIGGEST DISAPPOINTMENT SO FAR HAS BEEN TRADING IN PLATINUM FUTURES ONLY 43 OF WHICH CHANGED HANDS IN THE FIRST TWO MONTHS OF ACTIVITY DANIEL RAPPAPORT THE NEW YORK MERC'S CHAIRMAN SAID HE HOPES TO SEE ACCESS GAIN POPULARITY AS AN OVERNIGHT VEHICLE FOR PRECIOUS METALS FUTURES TRADING BY PLACING GOLD FUTURES AND SILVER FUTURES CURRENTLY TRADED EXCLUSIVELY BY THE NEW YORK COMMODITY EXCHANGE ON THE SYSTEM THE TWO EXCHANGES ARE CURRENTLY DISCUSSING A MERGER PUTTING GOLD AND SILVER FUTURES ON ACCESS ALL DEPENDS OF COURSE ON WHETHER OUR MERGER NEGOTIATIONS PROVE SUCCESSFUL HE SAYS FOR NOW HE SAYS THE FOCUS WILL BE ON BUILDING ACCESS'S REPUTATION AS A RELIABLE TRADING VEHICLE AMONG MARKET PARTICIPANTS HERE AND ABROAD IN JUNE THE EXCHANGE RECEIVED REGULATORY APPROVAL FROM THE BRITISH TREASURY THAT ALLOWS THE NEW YORK MERC TO INSTALL AN UNLIMITED NUMBER OF ACCESS SYSTEMS WITH TRADERS IN LONDON WE'RE EXPECTING TO HAVE 10 SYSTEMS INSTALLED WITH TRAINED OPERATORS BY LATE THIS FALL SAID THE NEW YORK MERC SPOKESWOMAN FOR US TRADERS THE MAIN BENEFIT OF ACCESS IS IN IMPROVING THE EFFICIENCY OF THE GLOBAL MARKET SAYS MR DICKSON THE ATLANTABASED TRADER ACCESS HE SAYS ALLOWS MARKET PLAYERS TO TRADE ON SHORTTERM PRICE MOVES OVERNIGHT AND IN THE EVENT OF A SUDDEN WORLD CRISIS ON MAJOR OVERNIGHT PRICE SWINGS IT'S BROUGHT THE MARKET ONE STEP CLOSER TO WHAT IS A GLOBALLY TRADED COMMODITY THERE'S NO REAL TIME LAG BETWEEN WHEN NYMEX VIA ACCESS CLOSES AND WHEN THE INTERNATIONAL PETROLEUM EXCHANGE OPENS IN LONDON HE SAYS RODNEY DOW WHO HEADS CITICORP'S ENERGY FUTURES GROUP SAYS HE HAS FOUND ACCESS PARTICULARLY USEFUL FOR TRADING WEST TEXAS INTERMEDIATE CRUDE AFTER THE AFTERHOURSRELEASE OF MARKETSENSITIVE INVENTORY STATISTICS FROM THE AMERICAN PETROLEUM INSTITUTE THE API USUALLY RELEASES ITS DATA ON TUESDAYS WHICH TEND TO BE THE BUSIEST DAYS FOR ACCESSBASED TRADING THE EXCHANGE SAYS 9309070108 930907 CREDIT RATINGS S&P PLACES DEBT OF WASTE MANAGEMENT FIRMS UNDER REVIEW NEW YORK STANDARD & POOR'S CORP PUT ABOUT 5 BILLION IN DEBT OF WMX TECHNOLOGIES INC AND CHEMICAL WASTE MANAGEMENT INC UNDER REVIEW WITH NEGATIVE IMPLICATIONS CITING PROSPECTS OF LOWER PROFITS S&P SAID THE STOCKS WENT ON ITS CREDITWATCH LIST BECAUSE OF LESS ATTRACTIVE INDUSTRY FUNDAMENTALS RESULTING IN LOWERTHANEXPECTED PROFITABILITY MOREOVER THE COMPANIES' BORROWINGS HAVE RISEN TO WHAT S&P CALLED HIGHERTHANEXPECTED LEVELS BECAUSE OF INCREASED CAPITAL SPENDING AND ACQUISITIONS THE SOLID AND HAZARDOUSWASTESERVICE BUSINESSES OF OAK BROOK ILLBASED WMX ARE BEING ADVERSELY AFFECTED BY GREATER THAN ANTICIPATED CYCLICALITY ONGOING WASTE MINIMIZATION EFFORTS INCREASING LEVELS OF RECYCLING AND AN INABILITY TO PASS ON INCREASING COSTS BECAUSE OF COMPETITION THE RATING SERVICE SAID IT ALSO SAID THE PERFORMANCE OF WMX'S MAJORITYOWNED HAZARDOUS WASTE SERVICES UNIT CHEMICAL WASTE IS BEING HURT BY A DECLINE IN WASTE VOLUMES FROM ENVIRONMENTAL CLEANUP PROJECTS AND SOFTNESS IN THE COMMERCIAL HAZARDOUSWASTE INCINERATION MARKET DEBT UNDER REVIEW INCLUDES WMX'S SENIOR AND SUBORDINATED DEBT INCLUDING COMMERCIAL PAPER AND SHELFREGISTRATION DEBT A WMX OFFICIAL HAD NO COMMENT ON S&P'S VIEWS BUT SAID THE COMPANY WOULD MEET WITH THE RATING CONCERN SOON 9309070107 930907 MARKETING & MEDIA FUTURE COMMUNICATIONS PLANS LAST YEAR'S MEETING DALLAS FUTURE COMMUNICATIONS INC SAID IT WILL HAVE ITS ANNUAL MEETING ON OCT 29 FOR LAST YEAR THAT IS SERGIO BOSCO CHAIRMAN SAID THE CABLETELEVISION CONCERN WAS TOO BUSY WITH THE RAPID PACE OF BUSINESS TO MEET ANY SOONER THOUGH ITS FISCAL YEAR ENDS OCT 31 HE SAID AT 1992'S MEETING HELD THIS YEAR THAT THE COMPANY WILL ANNOUNCE WHEN IN 1994 IT WILL HOLD THE 1993 MEETING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS LAST WEEK INDEFINITELY HALTED TRADING OF FUTURE'S SHARES AMID REPORTS THE COMPANY'S ACCOUNTING WAS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION ON FRIDAY FUTURE SAID ITS STOCK IS APPARENTLY ONE OF SEVERAL INVOLVED IN AN SEC INVESTIGATION OF A DEFUNCT TEXAS BROKER FUTURE ALSO SAID ABAR INTERNATIONAL LTD A MEXICAN CABLETELEVISION OPERATOR WILL FOOT MOST OF THE 135 MILLION BILL FOR FUTURE'S ANNOUNCED ACQUISITION OF FILMS FROM CINETEL FILMS INC A DISTRIBUTOR AND THE ROHAUER COLLECTION A LIBRARY FUTURE SAID IT WILL ISSUE TO ABAR 600000 COMMON SHARES OF ITS STOCK AND 100000 PREFERRED SHARES CONVERTIBLE INTO 400000 COMMON SHARES FUTURE HAD SAID THREE WEEKS AGO THAT IT WAS BUYING THE ROHAUER AND CINETEL FILMS WITH A JUSTCOMPLETED 125 MILLION PRIVATE PLACEMENT YESTERDAY THE DALLAS MORNING NEWS REPORTED THAT THE PLACEMENT HAD FALLEN THROUGH INFORMATION FUTURE HADN'T ANNOUNCED FUTURE OFFICIALS COULD NOT BE REACHED FOR COMMENT 9309070106 930907 INTERNATIONAL LIPPO GROUP TO BUY HOTEL IN HONG KONG FROM KUMAGAI GUMI HONG KONG KUMAGAI GUMI HONG KONG LTD AGREED TO SELL HONG KONG'S AMBASSADOR HOTEL TO LIPPO GROUP FOR HK129 BILLION US1665 MILLION MORE THAN DOUBLE THE AMOUNT KUMAGAI GUMI PAID FOR THE HOTEL SIX YEARS AGO HONGKONG CHINA LTD THE PROPERTY ARM OF LIPPO PAID A DEPOSIT OF HK258 MILLION OR 20 OF THE SALES PRICE TO KING TAI DEVELOPMENT INC THE KUMAGAI GUMI SUBSIDIARY THAT OWNS THE HOTEL THE BALANCE IS TO BE PAID ON COMPLETION OF THE AGREEMENT BEFORE APRIL 30 1994 JOHN LEE LIPPO'S MANAGING DIRECTOR SAID THE NEW OWNER INTENDS TO REDEVELOP THE HOTEL INTO A FIRSTCLASS COMMERCIAL AND OFFICE COMPLEX IN THE TSIMSHATSUI COMMERCIAL AREA LIPPO IS THE LOCALLY LISTED FLAGSHIP OF INDONESIA'S RIADY FAMILY WHICH CONTROLS ABOUT 52 LIPPO HAS BEEN ACTIVELY EXPANDING IN HONG KONG SINCE 1991 BY TAKING SIGNIFICANT STAKES IN LISTED COMPANIES KUMAGAI GUMI BOUGHT THE 313ROOM HOTEL FOR HK600 MILLION IN 1987 AND STANDS TO REALIZE A SURPLUS OF HK690 MILLION OVER ITS BOOK COST THE HOTEL REPRESENTS ABOUT 15 OF THE ASSETS ON THE CONSTRUCTION COMPANY'S BOOKS AND MORE THAN HALF OF ITS ASSETS IN HONG KONG KUMAGAI GUMI HONG KONG ABOUT 16 CONTROLLED BY CHEUNG KONG HOLDINGS LTD AND 64 OWNED BY JAPAN'S KUMAGAI GUMI CO HAS THE BULK OF ITS PROPERTY ASSETS IN CHINA FREDERICK MA AN EXECUTIVE DIRECTOR AT KUMAGAI GUMI HONG KONG SAID THE SALE DOESN'T MEAN THE COMPANY IS CONCENTRATING ITS ASSETS ON THE MAINLAND HE SAID PROCEEDS FROM THE SALE WOULD BE USED TO INCREASE WORKING CAPITAL AND CUT BANK BORROWINGS 9309070105 930907 MARKETING & MEDIA PEPSI DATES DIET DRINK FOR FRESHNESS IN RISKY TEST TO GAIN MARKETING EDGE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SEEKING AN EDGE OVER DIET COKE AND LOWCALORIE PRIVATELABEL SOFT DRINKS IS TEST MARKETING THE SALE OF DIET PEPSI AS A FRESH BEVERAGE THE NO 2 SOFTDRINK COMPANY HAS BEGUN SELLING DIET PEPSI IN SEVERAL CITIES USING SOCALLED FRESHNESS DATING COMMONLY FOUND ON PRODUCTS LIKE MILK STAMPED ON CANS OF DIET PEPSI IS THE LINE BEST TASTE IF CONSUMED BY A CERTAIN DATE IT IS A RISKY MARKETING PROPOSITION PEPSI IS TRYING TO SOLVE A STICKY CHEMISTRY PROBLEM WITH ASPARTAME THE ARTIFICIAL SWEETENER POPULARLY KNOWN AS NUTRASWEET SUGAR AND HIGHFRUCTOSE CORN SYRUP USED IN REGULAR COLAS MAINTAIN THEIR SWEETNESS FOR SIX MONTHS OR SO BUT ASPARTAME DEGRADES MORE QUICKLY IN DIET DRINKS LOSING ITS SWEETNESS SOMETIMES IN 60 TO 90 DAYS WHILE POSING NO HEALTH RISK THE OUTDATED DIET DRINKS CAN LOSE SOME OF THEIR TASTE NOT MANY CONSUMERS KNOW THAT THOUGH SO WHILE PEPSI MAY TOUT DIET PEPSI'S FRESHNESS THE COMPANY IS ALSO TACITLY ADMITTING WHAT THE COLA GIANTS DON'T LIKE TO THAT DIET COLAS CAN GET STALE LEAVE IT TO THE SOFTDRINK COMPANIES TO TAKE A POTENTIAL PROBLEM AND TURN IT INTO A MARKETING PLUS SAYS GERALD KELLER PUBLISHER OF BEVERAGE WORLD MAGAZINE ADVERTISING FOR THE DIET PEPSI FRESHNESS DATING SHOWN ONLY IN OMAHA NEB SO FAR USES A SOFTPEDAL APPROACH ONE SPOT HAS TEENAGERS TALKING BUT WHAT SOUNDS LIKE A DISCUSSION OF SOCIAL DATING TURNS OUT TO BE TALK OF FRESHNESS DATING FOR ITS PART COKE SAYS IT IS STUDYING SALES IN OMAHA WHERE IT HAS BEGUN PRINTING BUT NOT ADVERTISING ITS OWN FRESHNESS LABELS PEPSI MAY BE ONTO SOMETHING BEVERAGE MARKETERS SAY THAT WILL BECOME PART OF ITS NATIONAL ADVERTISING STRATEGY THE COLA COMPANIES HAVE LONG SOUGHT A WAY TO DISTINGUISH DIET COKE FROM DIET PEPSI COCACOLA CLASSIC'S IMAGE IS SENTIMENTAL AMERICANA WHILE REGULAR PEPSI'S IS HIP AND IRREVERENT BUT THE DIET VERSIONS OF THE TWO PRODUCTS HAVE NEVER REALLY ESTABLISHED DISTINCT IDENTITIES MOREOVER BECAUSE THEY BOTH ARE SWEETENED 100 WITH ASPARTAME THEY TEND TO TASTE QUITE SIMILAR THAT GIVES CONSUMERS LITTLE REASON OTHER THAN PRICE TO PICK ONE OVER THE OTHER MANY ARE OPTING FOR A PRIVATE LABEL DIET COLA FRESHNESS IS CLOSE TO NATURAL' WHICH IS THE HOT HOT TERM IN BEVERAGES IN THE 1990S SAYS TOM PIRKO PRESIDENT OF BEVMARK INC A CONSULTING COMPANY FINALLY SOMEONE HAS TAKEN A STAB AT A POINT OF DIFFERENCE THAT MIGHT WORK WITH DIETCOLA SALES SLOWING PEPSI IN PURCHASE NY IS LOOKING FOR WAYS TO JUICE UP THE ONCE HIGHFLYING LOWCALORIE SEGMENT AND PEPSI MARKETERS SAY THEY FEEL SOME PRESSURE TO SEIZE THE INITIATIVE FOLLOWING THE RECENT RETURN TO COKE OF SERGIO ZYMAN A FORMER MARKETING WHIZ AT THE ATLANTABASED RIVAL MR ZYMAN WAS ONE OF THE KEY ENGINEERS BEHIND THE LAUNCH OF DIET COKE A DECADE AGO AND HE IS EXPECTED TO WORK WITH PARTICULAR ZEAL TO SHORE UP THE BRAND'S RECENT WEAKNESS DIET COKE'S ADVERTISING IS ALREADY UNDER REVIEW ALSO THERE HAS BEEN SOME FRAGMENTED GRASSROOTS PRESSURE NEEDLING THE SOFTDRINK COMPANIES TO ADDRESS THE ASPARTAME ISSUE LAST SUMMER THE STATE CONSUMER PROTECTION BOARD IN NEW YORK ASKED SOFTDRINK MAKERS TO STANDARDIZE THEIR DATING LABELS ON BEVERAGES WITH ASPARTAME AND TO NOTIFY RETAILERS OF THE PRODUCTS' SHELF LIFE ELEENA DE LISSER IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9309070104 930907 POLITICS & POLICY CHRISTIAN COALITION HOPES TO EXPAND BY TAKING STANDS ON TAXES CRIME HEALTH CARE AND NAFTA BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT THE ZENITH OF THE DEBATE OVER PRESIDENT CLINTON'S DEFICITCUTTING PLAN THE OFFICE OF REP CHARLES STENHOLM BEGAN GETTING WAVES OF CALLS TELLING HIM TO VOTE NO CURIOUS WHAT WAS BEHIND THE WAVE THE TEXAS DEMOCRAT CALLED BACK A FEW CONSTITUENTS HIMSELF WHEN HE DID HE PUT HIS FINGER ON AN IMPORTANT NEW PHENOMENON IN AMERICAN POLITICS THE CALLS WERE BEING GENERATED BY THE CHRISTIAN COALITION WHICH AS PART OF A NEW EFFORT TO BROADEN ITS AGENDA BEYOND TRADITIONAL SOCIAL ISSUES LAUNCHED AN AGGRESSIVE GRASSROOTS CAMPAIGN AGAINST THE PLAN'S TAX INCREASES REP STENHOLM A CONSERVATIVE WHO HAD CONSIDERED HIMSELF FRIENDLY TO THE CHRISTIAN COALITION WASN'T PLEASED HE COMPLAINS THAT RADIO ADS THE COALITION RAN IN HIS DISTRICT PLAYED REAL LOOSE WITH THE FACTS MISREPRESENTING BOTH HIS POSITION ON ENERGY TAXES AND THE PERCENTAGE OF SPENDING CUTS IN THE DEFICITREDUCTION PLAN STILL THOUGH HE INSISTS THE CHRISTIAN COALITION DIDN'T INFLUENCE HIM REP STENHOLM DECIDED TO OPPOSE THE FINAL VERSION OF THE CLINTON PLAN AS THE STENHOLM EPISODE SUGGESTS THE CHRISTIAN COALITION IS AT A TURNING POINT AS IT PREPARES TO HOST A MEETING OF 2000 RELIGIOUS ACTIVISTS HERE AT THE END OF THIS WEEK THE ORGANIZATION FOUNDED AND LED BY ONETIME PRESIDENTIAL CANDIDATE PAT ROBERTSON IS A GROWING POLITICAL FORCE IN STATE AFTER STATE AND CLEARLY DOMINATES THE SOCALLED RELIGIOUS RIGHT OF THE REPUBLICAN PARTY YET ITS LEADERS HAVE DECIDED THAT THEIR MOVEMENT HAS FOCUSED TOO NARROWLY ON SOCIAL ISSUES SUCH AS ABORTION AND GAY RIGHTS AND MUST BREAK OUT OF THAT MOLD IF IT IS TO HAVE MASS APPEAL SO IN A RISKY EFFORT TO EXPAND ITS BASE IT HAS STARTED TAKING STANDS ON SUCH DIVERSE ISSUES AS TAXES CRIME EDUCATION HEALTH CARE AND EVEN THE NORTH AMERICAN FREE TRADE AGREEMENT WE DON'T IN ANY WAY MEAN TO IMPLY OR CONVEY THAT WE ARE RETREATING IN ANY WAY FROM THESE VITAL SOCIAL ISSUES SAYS RALPH REED THE EXECUTIVE DIRECTOR OF THE CHRISTIAN COALITION AND THE MAN WHO IS SPEARHEADING THE EXPANSION EFFORT I THINK OF IT AS HIRING MORE EMPLOYEES WHEN YOU HIRE NEW EMPLOYEES YOU DON'T GET RID OF THE ONES YOU ALREADY HAVE MR REED ARGUES THAT THE MAIN INTEREST OF THE CHRISTIAN COALITION'S 450000 MEMBERS IS STRENGTHENING THE AMERICAN FAMILY A PURSUIT THAT REQUIRES INCREASED ATTENTION TO CRIME AND ABOVE ALL ECONOMIC ISSUES IN ORDER TO DEAL WITH THE BREAKDOWN OF THE FAMILY AND IN ORDER TO DEAL WITH THE PRESSURES ON THE FAMILY YOU HAVE TO ADDRESS ECONOMIC PRESSURES AS WELL AS MORAL PRESSURES HE SAYS THUS THE COALITION ARGUED AGAINST THE DEFICITCUTTING PLAN ON THE GROUNDS THAT ITS TAX INCREASES WOULD HURT FAMILIES WHO WERE PROMISED MIDDLECLASS TAX CUTS BY CANDIDATE CLINTON BUT MR REED ALSO ADMITS THAT HE IS TAKING A CALCULATED POLITICAL STEP BY EXPANDING ITS HORIZONS HE ACKNOWLEDGES THE COALITION HOPES TO ERASE ANY PERCEPTIONS THAT ITS ACTIVISTS ARE RELIGIOUS ZEALOTS INTENSELY CONCENTRATED ON ONE OR TWO NARROW ISSUES THAT PERCEPTION WHICH WAS HARDENED BY THE ATTENTION GIVEN TO FAMILY VALUES RHETORIC AT LAST YEAR'S REPUBLICAN CONVENTION TURNS OFF MODERATE REPUBLICANS WHO ARE TRYING TO MOVE THE GOP AWAY FROM A FOCUS ON CONTROVERSIAL SOCIAL ISSUES THE FACT WE'RE ALSO FOCUSING ON ISSUES LIKE CRIME AND TAXES WILL PROBABLY SOFTEN SOME OF THE FEATURES AND PUT A FRIENDLIER FACE ON WHO WE ARE SO THAT WE BRING MORE POLITICAL CAPITAL TO BEAR WHEN WE DO COME TO THE TABLE MR REED SAYS IF THIS PROCESS SUCCEEDS SOME ANALYSTS SAY MESSRS ROBERTSON AND REED COULD BECOME FAR MORE IMPORTANT PLAYERS IN THE REPUBLICAN PARTY MR REED IS MAKING IT POSSIBLE FOR NONRELIGIOUS REPUBLICANS TO REACH OUT TO HIM SAYS FRANK LUNTZ A REPUBLICAN POLLSTER HIS POLITICS MAY STILL BE RELIGIOUSLY BASED BUT HE'S MAKING THEM MORE ACCEPTABLE TO MAINSTREAM REPUBLICANS IT IS ALSO CLEAR THOUGH THAT THE COALITION HAS YET TO PROVE EXACTLY HOW MUCH CLOUT IT WILL HAVE BEYOND ITS CORE SOCIAL AND CULTURAL ISSUES ITS POTENTIAL SEEMS HIGH THE COALITION DEFINES ITS AUDIENCE BROADLY AS CHURCHGOING FAMILIES WITH CHILDREN ITS CORE OF NATIONAL MEMBERS WHO PAY 15 ANNUAL DUES FORMS ONLY PART OF THE COALITION'S COMPUTERIZED DATA BASE OF 750000 ACTIVISTS WHO HAVE BEEN HELPFUL IN LOCAL POLITICAL CAMPAIGNS OR HAVE SIGNED PETITIONS THOSE SYMPATHIZERS CAN BE ACTIVATED BY COMPUTERGENERATED MAILINGS OR MASS PHONE DRIVES IN ADDITION THE COALITION HAS WHAT AMOUNTS TO A NATIONAL PRECINCT ORGANIZATION THANKS TO ITS COMPUTER LISTING OF 35000 CHURCHES IT CAN CONTACT TO DISSEMINATE ITS MESSAGES BUT THE COALITION STILL HAS TO PROVE THAT IT CAN DELIVER THE KIND OF BROAD INFLUENCE THOSE NUMBERS SUGGEST IN ITS CAMPAIGN AGAINST THE DEFICITREDUCTION PLAN FOR INSTANCE THE COALITION TARGETED 14 WAVERING DEMOCRATS IN 11 STATES AND SPENT 150000 TO INFLUENCE THEM IT POURED AN AVERAGE OF 6000 TO 8000 PIECES OF MAIL INTO EACH OF THOSE DISTRICTS BACKED UP BY TELEPHONE CALLS TO MEMBERS URGING THEM TO CALL LAWMAKERS' LOCAL OFFICES TO LOBBY AGAINST THE DEFICIT PLAN IN ADDITION THE COALITION PUT ADS ON RADIO STATIONS IN TWO CITIES IN EACH DISTRICT AT LEAST FOUR TIMES A DAY BUT IN THE END ONLY REP STENHOLM AMONG THOSE TARGETED VOTED AGAINST THE DEFICITREDUCTION PLAN WE DON'T INTERPRET THE FACT THAT WE DIDN'T TURN MORE OF THOSE THE OTHER WAY AS A SIGN THAT OUR CAMPAIGN WAS UNSUCCESSFUL SAYS MR REED INSTEAD HE ARGUES BY TARGETING A FEW MEMBERS THE COALITION WAS MERELY TRYING TO ILLUSTRATE TO ALL LAWMAKERS THAT VOTING FOR THE CLINTON PLAN WOULD PRODUCE POLITICAL PAIN NOW THAT THE BUDGET DEBATE HAS PASSED THE COALITION INTENDS TO PUSH FOR A FAMILY TAX RELIEF PLAN THAT WOULD COMBINE A FEDERAL BUDGET FREEZE WITH AN INCREASE IN THE STANDARD TAX DEDUCTION FOR CHILDREN BEYOND THAT IT INTENDS TO LOBBY FOR INITIATIVES PARTICULARLY ONE UP FOR A VOTE THIS FALL IN CALIFORNIA THAT WOULD GIVE PARENTS GREATER FREEDOM TO CHOOSE THE SCHOOLS THEIR CHILDREN WILL ATTEND MR REED SAYS THAT ISSUE GIVES THE CHRISTIAN COALITION THE CHANCE TO MAKE RARE INROADS AMONG MINORITIES WHO TEND TO FAVOR CHOICE IN EDUCATION THE COALITION ALSO INTENDS TO WEIGH IN ON HEALTHCARE REFORM FIGHTING FUNDING OF ELECTIVE ABORTIONS IN ANY NATIONAL PLAN OPPOSING MANDATORY MEMBERSHIP IN HEALTH COOPERATIVES THAT MIGHT LIMIT FAMILIES' CHOICE OF DOCTORS AND RESISTING REQUIRING SMALL BUSINESSES TO PAY FOR EMPLOYEES' HEALTH COVERAGE MR REED NOTING MR ROBERTSON'S INVOLVEMENT IN OVERSEAS TRADE THROUGH HIS BROADCAST OPERATIONS GENERALLY ENDORSES NAFTA BUT NAFTA ALSO HELPS ILLUSTRATE THE RISKS IN THE CHRISTIAN COALITION'S STRATEGY ON THE BUDGET DEAL THE COALITION ANGERED A GENERALLY SYMPATHETIC FIGURE IN REP STENHOLM WITH ITS LOBBYING EVEN THOUGH MR REED INSISTS ITS ADS ON THE ISSUE WERE COMPLETELY DOCUMENTED AND TOTALLY FACTUAL AND THAT HE HOPES TO STAY ON GOOD TERMS WITH THE LAWMAKER NOW THE COALITION HAS DISPLEASED SOME OF ITS CONSERVATIVE SUPPORTERS BY COMING OUT IN FAVOR OF NAFTA PATRICK BUCHANAN THE CONSERVATIVE COMMENTATOR AND A NAFTA FOE SAYS HE COMPLAINED ABOUT THE ENDORSEMENT OF NAFTA MR BUCHANAN ARGUES THAT MANY FELLOW CONSERVATIVES WHO ARE BEDROCK SUPPORTERS OF THE CHRISTIAN COALITION DON'T LIKE NAFTA AND THAT COME THE FALL THE COALITION WON'T BE VERY ENTHUSIASTIC ABOUT THE TRADE DEAL MR REED ACKNOWLEDGES THAT THE COALITION'S NAFTA SUPPORT MAY NOT BE VERY VOCAL PARTLY BECAUSE OF SUCH CONSERVATIVE MISGIVINGS AS THE NEW STRATEGY UNFOLDS HE SAYS WE'RE GOING TO HAVE TO PICK AND CHOOSE OUR FIGHTS 9309070103 930907 LETTERS TO THE EDITOR WE KEEP PROPOSING THEY KEEP DISPOSING IN YOUR AUG 25 EDITORIAL POLITICS IN ARKANSAS YOU POINT OUT THAT ARKANSAS IS THE ONLY STATE IN WHICH ALL THE JUDGES ARE ELECTED ON A PARTISAN BASIS FOR YOUR INFORMATION IN 1970 A NEW STATE CONSTITUTION WAS PROPOSED THAT CALLED FOR NONPARTISAN ELECTION OF JUDGES IT WAS DEFEATED BY THE PEOPLE IN 1980 A NEW CONSTITUTION WAS PROPOSED THAT CALLED FOR THE NONPARTISAN ELECTION OF JUDGES IT WAS DEFEATED BY THE PEOPLE IN 1991 THE ARKANSAS BAR ASSOCIATION THROUGH ITS JUDICIAL ARTICLE TASK FORCE DRAFTED AND SUPPORTED A NEW JUDICIAL ARTICLE THAT CALLED FOR THE NONPARTISAN ELECTION OF TRIAL JUDGES AND THE MERIT SELECTION OF APPELLATE JUDGES IT WAS SUPPORTED BY THE ARKANSAS JUDICIAL COUNCIL WHOSE MEMBERSHIP CONSISTS OF ARKANSAS JUDGES UNFORTUNATELY THE ARKANSAS LEGISLATURE WOULD NOT PERMIT THE NEW PROPOSED JUDICIAL ARTICLE TO BE VOTED ON BY THE PEOPLE THE ARKANSAS BAR ASSOCIATION AND ARKANSAS JUDGES HAVE FOR YEARS BEEN ATTEMPTING TO IMPROVE THE ADMINISTRATION OF JUSTICE IN THIS STATE 9309070102 930907 TECHNOLOGY INSURERS ACTIVATE NINESTATE NETWORK TO PROCESS HEALTH DATA ELECTRONICALLY BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL AN INSURANCE INDUSTRY CONSORTIUM SAID IT ACTIVATED IN NINE STATES A NEW NETWORK AIMED AT PROCESSING HEALTH INFORMATION ELECTRONICALLY IT REFLECTS BURGEONING EFFORTS AMONG NATIONAL AND REGIONAL ORGANIZATIONS TO APPLY INFORMATION TECHNOLOGY ROUTINELY USED BY BANKS AIRLINES AND RETAILERS TO REDUCE THE COST AND HASSLE OF PROCESSING MEDICAL CLAIMS SUCH COSTS ESTIMATED AT 10 BILLION A YEAR ARE EXPECTED TO BE A TARGET OF THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PLAN NATIONAL ELECTRONIC INFORMATION CORP THE CONSORTIUM BASED IN SECAUCUS NJ SAID THE NETWORK INITIALLY ALLOWS DOCTORS AND HOSPITALS TO VERIFY VIA DESKTOP COMPUTER THE INSURANCE COVERAGE OF PATIENTS INSURED BY MEMBER COMPANIES THEY CAN INQUIRE ONLINE TO SEE IF YOU'RE COVERED AND WHAT THE STATUS OF YOUR BENEFITS ARE SAID KENNETH J O'DONNELL THE GROUP'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN 20 SECONDS THEY WILL HAVE YOUR COVERAGE INFORMATION IN THEIR OFFICE DURING 1994 THE NETWORK IS EXPECTED TO BE EXTENDED TO OTHER STATES AND ALSO PROVIDE INSURANCE DEDUCTIBLE AND COPAYMENT INFORMATION FILE CLAIMS ELECTRONICALLY AND PERHAPS CREDIT PAYMENTS AUTOMATICALLY A TRANSACTION FEE WOULD BE CHARGED AND THE NETWORK IS EXPECTED TO HANDLE UP TO 100 MILLION TRANSACTIONS A YEAR BY 1996 MOST SUCH TRANSACTIONS ARE PROCESSED BY CLERKS OVER THE PHONE OR BASED ON PAPER CLAIMS FILED BY PATIENTS AND PROVIDERS EVENTUALLY PATIENT MEDICAL DATA ALSO ARE EXPECTED TO BE TRANSMITTED ELECTRONICALLY THE CONSORTIUM WHICH INCLUDES AETNA LIFE & CASUALTY CO CIGNA CORP METROPOLITAN LIFE INSURANCE CO AND PACIFICARE HEALTH SYSTEMS INC DEVELOPED THE NETWORK WITH MCKESSON CORP'S PCS HEALTH SYSTEMS INC UNIT IT IS AVAILABLE IN CALIFORNIA TEXAS FLORIDA ILLINOIS OHIO VIRGINIA NEW YORK NEW JERSEY AND CONNECTICUT PCS WHICH ALSO PROVIDES MANAGED PRESCRIPTION DRUG SERVICES OPERATES A SIMILAR NETWORK IN MORE THAN 50000 PHARMACIES IN THE US KEVIN MOLEY PCS SENIOR VICE PRESIDENT CALLS THE NEW SYSTEM AN ATM NETWORK FOR HEALTH CARE BECAUSE IT IS BASED ON THE TECHNOLOGY THAT ENABLES CONSUMERS TO ACCESS THEIR BANK ACCOUNTS FROM AUTOMATIC TELLER MACHINES IN MARCH INTERNATIONAL BUSINESS MACHINES CORP AND THE BLUE CROSS AND BLUE SHIELD ASSOCIATION ANNOUNCED A SIMILAR ELECTRONIC DATA INTERCHANGE INITIATIVE CALLED EDIUSA THE JOHN A HARTFORD FOUNDATION A PHILANTHROPY BASED IN NEW YORK CITY IS SUPPORTING DEVELOPMENT OF COMMUNITY HEALTHINFORMATION MANAGEMENT SYSTEMS IN SEVERAL CITIES INCLUDING MEMPHIS TENN AND MINNEAPOLIS AND AREAS IN WASHINGTON STATE AND IOWA THESE SYSTEMS ARE AIMED AT GATHERING DATA THAT WILL HELP EVALUATE AND IMPROVE HEALTHCARE DELIVERY 9309070101 930907 EC GRANTS AID FOR SPANISH ROAD BRUSSELS THE EUROPEAN COMMUNITY ANNOUNCED MONDAY THAT IT WILL GRANT 1448 MILLION EUROPEAN CURRENCY UNITS 1669 MILLION TO HELP FINANCE CONSTRUCTION OF A HIGHWAY AROUND MADRID THE AID COMES UNDER THE EC'S SOCALLED COHESION FUND SET UP THIS YEAR TO HELP THE ECONOMIES OF THE POOREST FOUR EC NATIONS CATCH UP TO THEIR EIGHT RICHER PARTNERS SOME 16 BILLION ECU HAVE BEEN EARMARKED FOR THE COHESION FUND THIS YEAR SPAIN WILL RECEIVE UP TO 58 PORTUGAL AND GREECE BETWEEN 16 AND 20 AND IRELAND 7 TO 10 WORK ON THE TWO SECTIONS OF THE MADRID HIGHWAY TO RECEIVE EC FINANCING IS SCHEDULED TO FINISH NEXT SPRING THE EC MONEY SHOULD COVER 85 OF THE COSTS 9309070100 930907 TOYOTA TO RAISE 4 BILLION TO BACK US LEASING PLAN SPECIAL TO THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP'S US RETAIL FINANCE ARM WILL RAISE MORE THAN 4 BILLION ON THE EUROMARKET NEXT YEAR FOR A LARGESCALE LEASING SCHEME AND OTHER INVESTMENTS A COMPANY OFFICIAL SAID LIKE MANY OTHER CAR MAKERS IN THE US TOYOTA PLANS TO EXPAND ITS LEASING BUSINESS TO INCLUDE ALMOST EVERY TOYOTA MODEL TO TAKE ADVANTAGE OF STRONG DEMAND ON THE SECONDARY MARKET THE OFFICIAL SAID SPEAKING ON CONDITION OF ANONYMITY BECAUSE OF THE ROUGHLY 21 APPRECIATION BY THE YEN AGAINST THE DOLLAR SINCE FEBRUARY PRICES ON NEW JAPANESE CARS IN THE US HAVE BEEN RISING FOSTERING DEMAND FOR LEASED OR USED VEHICLES JAPANESE CARS ARE GETTING VERY EXPENSIVE ON THE PRIMARY MARKET BUT ON THE SECONDARY MARKET THEY HAVE A VERY STRONG POSITION HE SAID MONTHLY PAYMENTS WOULD BE VERY CHEAP BECAUSE THE RESIDUAL VALUE OF TOYOTA CARS IS VERY HIGH THE OFFICIAL SAID THE OFFICIAL SAID FUNDRAISING ACTIVITIES BY THE UNIT TOYOTA MOTOR CREDIT CORP WILL DEPEND ON CONDITIONS IN THE EUROMARKET IF NOT THE EUROMARKET THERE IS ALSO THE US DOMESTIC MARKET HE SAID TOYOTA MAINTAINS A POLICY OF HAVING EACH OF ITS FINANCE UNITS RAISE MONEY FOR NEW BUSINESS INDEPENDENTLY RATHER THAN RELY ON THE CASHRICH JAPANESE PARENT HE SAID TOYOTA MOTOR CREDIT IS A SUBSIDIARY OF TOYOTA'S US ARM TOYOTA MOTOR SALES USA INC IN TORRANCE CALIF WITH TOTAL ASSETS OF ABOUT 10 BILLION AND ABOUT 1700 EMPLOYEES TOYOTA MOTOR CREDIT IS BY FAR THE LARGEST OF TOYOTA'S SIX MAIN OVERSEAS FINANCE SUBSIDIARIES TOYOTA IS TAKING PRECAUTIONS TO MAINTAIN ITS TRIPLEA CREDIT RATING FROM STANDARD & POOR'S CORP THE AGENCY LAST MONTH PUT TOYOTA ON CREDITWATCH FOR POSSIBLE DOWNGRADE WITH OTHER JAPANESE CAR MAKERS BECAUSE OF THE DISMAL PROSPECTS FOR A NEARTERM RECOVERY OF SALES AND PROFITS ANALYSTS SAY TOYOTA WHICH EXPECTS UNCONSOLIDATED PRETAX PROFIT TO FALL 30 THIS FISCAL YEAR THROUGH JUNE 1994 TO 200 BILLION YEN IS TOO OPTIMISTIC IN ITS FORECAST WHICH IS BASED ON THE EXCHANGE RATE OF 110 YEN TO THE DOLLAR A PROTRACTED DOMESTIC CAR SLUMP SLUGGISH OVERSEAS DEMAND AND THE NEGATIVE IMPACT OF THE YEN'S SURGE ARE LIKELY TO KEEP OPERATING CONDITIONS DIFFICULT THIS YEAR THEY SAY BUT WITH ABOUT 13 TRILLION YEN IN NET LIQUIDITY MOSTLY CASH TOYOTA OFFICIALS SAY THEY ARE CONFIDENT THEY CAN REDEEM ALL OF THEIR DEBT AS TOYOTA MOTOR CREDIT EXPANDS ASSETS RAPIDLY HOWEVER IT REQUIRES INCREASED CAPITAL TO MAINTAIN ITS CREDITWORTHINESS THE TOYOTA OFFICIAL SAID THE AMOUNT OF THAT NEW CAPITAL IS CONFIDENTIAL HE SAID TOYOTA MOTOR SALES PLANS TO TRANSFER CASH TO TOYOTA MOTOR CREDIT'S INVESTMENT ACCOUNT AROUND THE END OF SEPTEMBER THE PROFITS OF TMCC HAVE BEEN GOOD AROUND 200 MILLION IN PROFIT A YEAR BUT THE SPEED OF INCREASE IN ASSETS HAS BEEN TOO FAST HE SAID 9309070099 930907 ANSALDO WINS WATER PLANT JOBS MILAN ITALIAN ENGINEERING GROUP ANSALDO SPA SAID IT WON A CONTRACT VALUED AT 200 BILLION LIRE 1251 MILLION TO BUILD WATER DESALINATION PLANTS IN KUWAIT THE COMPANY SAID THE CONTRACT PROVIDED FOR CONSTRUCTION OF PLANTS AT DOHA WEST AND AZ ZOUR SOUTH TO MAKE SOME 600000 CUBIC METERS A DAY OF WATER DRINKABLE ANSALDO SAID THE WORK SHOULD BE COMPLETED IN THREE YEARS ANSALDO SAID IT ALSO WON THREE CONTRACTS VALUED AT 125 BILLION LIRE FOR PLANTS IN EGYPT SAUDI ARABIA AND SYRIA ANSALDO IS PART OF ITALY'S STATE INDUSTRIAL HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE 9309070098 930907 LETTERS TO THE EDITOR JOE CAMEL PROVOKES NANNY' REFLEX AT FTC THE FTC STAFF RECOMMENDATION TO BAN THE JOE CAMEL ADVERTISING CAMPAIGN ADVERTISING AUG 11 SHOULD RAISE ALARM BELLS FOR ALL AMERICANS CONCERNED ABOUT UNWARRANTED GOVERNMENT INTRUSION INTO THE MARKETPLACE IF THE COMMISSION DETERMINES THAT THE CAMPAIGN INDUCES MINORS TO START SMOKING THEN IT WOULD BE JUSTIFIED IN BANNING THE JOE CAMEL ADS SINCE THE SALE OF CIGARETTES TO MINORS IS ILLEGAL NO ONE HAS THE LEGAL OR MORAL RIGHT TO ADVERTISE THAT WHICH IS ILLEGAL HOWEVER IF A FULL INVESTIGATION FAILS TO INDICATE CONCLUSIVELY THAT JOE CAMEL INDUCES MINORS TO SMOKE RESTRICTING THE CAMPAIGN WOULD SET A DANGEROUS PRECEDENT DESPITE THE CAMPAIGN'S APPARENT UNPOPULARITY AMONG MANY WELLINTENTIONED GROUPS THE ACTION WOULD RAISE THE SPECTER OF GOVERNMENT BUREAUCRATS DECIDING BY FIAT WHETHER OR NOT TO RESTRICT A WHOLE RANGE OF PRODUCTS AND ACTIVITIES THEY DEEM TO BE HARMFUL FROM FOODS HIGH IN FAT TO MOTORCYCLES TO BUNGEE JUMPING THE LIST OF POTENTIAL TARGETS FOR SUCH A NATIONAL NANNY IS ENDLESS HENCE THE ALARM BELLS 9309070097 930907 EDUCATION EFFORTS TO HIRE MINORITY EDUCATORS AIM TO NARROW STUDENTTEACHER ETHNIC GAP BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES JONAS CALDERON SPENT HIS EARLY DAYS IN HIGH SCHOOL STRUGGLING TO LEARN ENGLISH OFTEN SLEEPING IN HIS 1968 FORD MUSTANG TO ESCAPE A HELLISH HOME LIFE THEN A 12THGRADE TEACHER INTRODUCED HIM TO BOOKS ZORBA THE GREEK CATCHER IN THE RYE THE CHOSEN IT WOULD BE NICE IF I COULD DO THAT FOR SOMEONE ELSE SAYS THE SOFTSPOKEN MR CALDERON WHO EMIGRATED FROM EL SALVADOR WHEN HE WAS 15 YEARS OLD NOW 24 HE IS GETTING HIS TEACHER'S CREDENTIALS WHILE WORKING PART TIME AS AN AIDE AT JAMES A FOSHAY JUNIOR HIGH SCHOOL IN SOUTH CENTRAL LOS ANGELES MR CALDERON IS A PRIZED PARTICIPANT IN THE UNIVERSITY OF SOUTHERN CALIFORNIA'S LATINO TEACHER PROJECT ONE OF HUNDREDS OF MINORITYTEACHER RECRUITMENT PROGRAMS THAT HAVE SPRUNG UP IN RECENT YEARS THEIR AIM IS TO NARROW THE GAP BETWEEN THE NUMBER OF ETHNIC PUBLICSCHOOL TEACHERS AND ETHNIC STUDENTS SINCE 1976 THE PROPORTION OF MINORITY STUDENTS HAS CLIMBED STEADILY TO 32 CURRENTLY FROM 24 WHILE THE MINORITY TEACHING POPULATION HAS REMAINED STATIC AT AROUND 10 ACCORDING TO THE US DEPARTMENT OF EDUCATION AND WHILE MINORITY ENROLLMENTS CONTINUE TO RISE THE NUMBER OF MINORITY TEACHERS PARTICULARLY BLACKS IS ACTUALLY DROPPING IN SOME REGIONS THE RESULT OF THE ETHNIC TEACHERSTUDENT GAP SAY THOSE IN FAVOR OF MINORITY RECRUITMENT IS MINORITY STUDENTS HAVING FEWER ROLE MODELS TO IMPEL THEM TO LEARN WE NEED TO SHOW KIDS THEY CAN STRIVE FOR MORE THAN WHAT THEY HAVE INSTEAD OF JUST GOING TO SCHOOL AND SEEING BLACK JANITORS SAYS ROCHELLE BROCK A BERKELEY CALIF COLLEGE STUDENT WHO PLANS TO TEACH IN INNER CITIES ON AVERAGE URBAN SCHOOLS HAVE A TEACHING FORCE WHOSE DEMOGRAPHICS ARE ABOUT THE OPPOSITE OF THEIR STUDENTS SAYS MICHAEL CASSERLY EXECUTIVE DIRECTOR OF COUNCIL OF THE GREAT CITY SCHOOLS WHICH INCLUDES THE COUNTRY'S 47 LARGEST URBAN SCHOOL DISTRICTS IN 1992 AVERAGE ENROLLMENT IN URBAN SCHOOLS WAS 75 MINORITY COMPARED WITH A 38 MINORITY TEACHING FORCE THE DISCREPANCY IS ESPECIALLY MARKED IN CALIFORNIA WHERE 82 OF PUBLICSCHOOL TEACHERS ARE WHITE AMID A HISPANIC POPULATION BOOM THAT HAS HELPED BOOST THE TOTAL MINORITYSTUDENT ENROLLMENT IN PUBLIC SCHOOLS TO 57 FEW OF THOSE STUDENTS SEE EDUCATION AS A CAREER JOHN MCLEVIE A CONSULTANT TO THE STATE'S COMMISSION ON TEACHER CREDENTIALING SAYS THE NUMBER OF MINORITY STUDENTS IN THE TEACHING PIPELINE IS DECLINING IT APPEARS TO BE DIFFICULT TO RECRUIT THE SAME NUMBERS MUCH LESS INCREASE THEM SAYS MR MCLEVIE BUDGET CUTS AT CALIFORNIA'S STATE UNIVERSITIES WHERE MOST OF THE STATE'S TEACHERS GET CERTIFIED MAY HAVE TAKEN A DISPROPORTIONATE TOLL ON MINORITIES IN 1991 THE NUMBER OF BLACK AND HISPANIC GRADUATES FROM CALIFORNIA TEACHERCREDENTIALING PROGRAMS DROPPED 41 AND 24 RESPECTIVELY COMPARED WITH A 13 DROP IN WHITE GRADUATES MINORITY TEACHER IN THE WEST AND SOUTHWEST US TENDS TO MEAN BILINGUAL HISPANICS BUT THAT ISN'T THE CASE ELSEWHERE SOUTH CAROLINA HAS LOST MORE THAN 2300 BLACK TEACHERS SINCE 1975 A 13 DROP AND STATEFUNDED RECRUITMENT PROGRAMS HAVE YET TO HALT THE SLIDE OKLAHOMA IS ALSO STRUGGLING WITH A DROP IN BLACK TEACHERS POSSIBLE REASONS FOR THE ETHNIC GAP INCLUDE THE POOR ECONOMY WHICH MAY BE FORCING OLDER TEACHERS TO HANG ONTO THEIR JOBS AND LEADING COLLEGE STUDENTS TO AIM FOR BETTERPAYING ONES PAST CUTBACKS IN AID TO MINORITY STUDENTS SADDLING THEM WITH GREATER COLLEGE DEBT AND MORE OPPORTUNITIES FOR MINORITIES BEYOND THE LIMITED SUCCESS THAT TEACHING ONCE OFFERED TRADITIONALLY AFRICANAMERICANS WERE TEACHERS PREACHERS AND UNDERTAKERS SAYS RITA STRINGFELLOW ASSISTANT DIRECTOR OF SOUTH CAROLINA'S CENTER FOR TEACHER RECRUITMENT RECRUITERS HAVE TO WORK HARD TO CONVINCE BLACK PARENTS THAT A TEACHING JOB FOR THEIR CHILDREN IS WORTH ANY IMMEDIATE SACRIFICES AND THAT IT NEEDN'T BE A LIFETIME CAREER SHE ADDS PEDRO NOGUERA AN EDUCATION PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAYS HE SEES MORE MINORITY STUDENTS WHO WANT TO RETURN TO INNER CITIES TO TEACH BUT CAN'T AFFORD IT EVEN THOUGH THEIR HEARTS MIGHT BE IN TEACHING THEIR POCKETBOOKS TELL THEM TO GO ELSEWHERE ETHNIC PARITY IN SCHOOLS IS A HIGHLY CHARGED ISSUE EVEN SOME PEOPLE HEEDING THE CALL FOR MORE MINORITY TEACHERS DISAGREE WITH THE THEORY THAT STUDENTS NEED THEM AS ROLE MODELS MARY DILWORTH SENIOR DIRECTOR FOR RESEARCH AT THE AMERICAN ASSOCIATION OF COLLEGES FOR TEACHER EDUCATION IN WASHINGTON DC DISLIKES THAT CONCEPT BECAUSE IT SAYS TO TEACHERS WE WANT YOU FOR THE WAY YOU LOOK WE NEED TO SAY WE WANT YOU FOR WHAT YOU KNOW THE DIFFERENCE IN PRACTICE IS THAT A DIVERSE TEACHING FORCE EASES COMMUNICATION WITH AN INCREASINGLY NONWHITE STUDENT BODY SHE SAYS CRITICS OF MINORITYTEACHER RECRUITMENT SEE IT AS HYPOCRITICAL AND A DISTRACTION FROM OTHER CONCERNS SUCH AS SCHOOL REFORM ON THE ONE HAND WE'VE BEEN SAYING WE NEED DESEGREGATION AND NONRACEBASED EDUCATION ON THE OTHER WE'RE SAYING MINORITY KIDS CAN ONLY LEARN FROM MINORITY TEACHERS SAYS ALLYSON TUCKER MANAGER OF THE CENTER FOR EDUCATIONAL POLICY AT THE HERITAGE FOUNDATION A CONSERVATIVE WASHINGTON DC THINK TANK YOU CAN'T HAVE IT BOTH WAYS MOST PROPONENTS OF MINORITY RECRUITMENT ARE QUICK TO SAY THEY ARE NOT SUGGESTING THAT ONLY BLACKS SHOULD TEACH BLACKS BUT YOU DO HEAR THAT ARGUMENT SAYS JOE AGUERREBERE DIRECTOR OF THE MINORITYTEACHER RECRUITMENT PROGRAM AT CALIFORNIA STATE UNIVERSITY DOMINGUEZ HILLS SOUTH OF DOWNTOWN LOS ANGELES THE RECRUITMENT PROGRAMS ARE AIMING AT EVERYOUNGER TARGETS MORE THAN 400 PRECOLLEGIATE PROGRAMS TO GET STUDENTS INTERESTED IN TEACHING HAVE BEEN CREATED OVER THE PAST DECADE MOST IN THE LAST FIVE YEARS ACCORDING TO A NEW STUDY BY RECRUITING NEW TEACHERS IN CAMBRIDGE MASS THE PROGRAMS RANGE FROM MAGNET SCHOOLS LINKED TO COLLEGES AND UNIVERSITIES TO NATIONAL HIGHSCHOOL CLUBS SUCH AS FUTURE EDUCATORS OF AMERICA A RESURRECTION OF THE OLD FUTURE TEACHERS CLUBS OF THE 1950S AND 60S ALMOST 70 OF THE 216 PROGRAMS SURVEYED LISTED EXPANDING THE POOL OF POTENTIAL MINORITY TEACHERS AS A KEY AIM THE SUCCESS RATE OF THE NEW PROGRAMS IS HARD TO GAUGE BECAUSE THERE IS LITTLE COORDINATION BETWEEN THEM LET ALONE FUNDING TO TRACK RESULTS PEOPLE IN THE FIELD WARN THAT SUCH PROGRAMS TAKE TIME AND ARE NO PANACEA FOR AMERICA'S SWIFTLY CHANGING CLASSROOM DEMOGRAPHICS THERE'S NO MAGIC FIX SAYS DAVID HASELKORN PRESIDENT OF RECRUITING NEW TEACHERS WHO GRIPES THAT NATIONAL EDUCATION REFORMS ARE TOO FIXATED ON TESTING AND STANDARDS TO ADDRESS HUMAN RESOURCES STILL IN A FEW CITIES THE RATIO OF MINORITY TEACHERS TO STUDENTS IS STARTING TO GROW ALTHOUGH SOME EDUCATORS WORRY THAT CHANGE IS GLACIAL AND UNSUSTAINABLE MANY MINORITYORIENTED PROGRAMS INVOKE THE SAME NOBILITY OF SERVICE THAT MOTIVATED MR CALDERON WHO CHOSE TEACHING OVER THE LAW CAREER HIS COLLEGE ADVISERS SUGGESTED THE TWOYEAROLD LATINO TEACHER PROJECT WHICH HE JOINED AS A COLLEGE JUNIOR IS FUNDED BY THE FORD FOUNDATION IN NEW YORK AND PROVIDES FINANCIAL ACADEMIC AND SOCIAL SUPPORT TO ITS 100 PARTICIPANTS SILENCIO POR FAVOR NINO MR CALDERON TELLS A ROWDY STUDENT ONE OF 40 IN AN OVERCROWDED CLASSROOM AT FOSHAY JUNIOR HIGH ALTHOUGH HE NOW WORKS WITH REMEDIAL ENGLISH STUDENTS MR CALDERON EVENTUALLY WANTS TO TEACH LITERATURE I CAN RELATE TO THESE STUDENTS I REMEMBER WHEN I WAS THAT SCARED MR CALDERON SAYS IF I CAN CHANGE A TINY PART OF THEIR BRAIN THEN I'LL BE HAPPY 9309070095 930907 LEISURE & ARTS TOP TEN SINGLES / ALBUMS COMPILED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9309070094 930907 WORLD MARKETS PROFITTAKING PUSHES STOCKS LOWER IN TOKYO DOWN SHARPLY IN FRANKFURT LONDON PRICES GAIN A WALL STREET JOURNAL NEWS ROUNDUP PROFITTAKING PUSHED TOKYO STOCKS LOWER MONDAY IN LACKLUSTER DEALINGS LONDON SHARES WHICH SPENT MOST OF THE DAY IN NEGATIVE TERRITORY ENDED SLIGHTLY HIGHER FRANKFURT PRICES FELL SHARPLY MAINLY BECAUSE INVESTORS TOOK PROFITS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11389 UP 078 REFLECTING INCREASES IN MARKETS IN THE ASIA/PACIFIC REGION AND IN EUROPE AND A DROP IN THE AMERICAS CONSUMER ELECTRONICS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12154 UP 263 OR 221 WITH PIONEER OF JAPAN POSTING A 436 GAIN IN ITS LOCAL CURRENCY ADVANCED MEDICAL DEVICES STOCKS TRAILED AT 5988 DOWN 154 OR 251 WITH ST JUDE MEDICAL OF THE US SLIDING 635 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADVANCED 13301 POINTS FRIDAY FELL 5540 TO 2106081 NEAR THE INTRADAY LOW OF 2105591 ON TUESDAY THE NIKKEI FELL 14602 POINTS TO CLOSE THE MORNING SESSION AT 2091479 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES DOWN STEEPLY FROM 4716 MILLION SHARES IN THE PREVIOUS SESSION LOSERS EDGED OUT GAINERS 499472 THE TOKYO MARKET'S PAUSE FOLLOWED GAINS IN EIGHT OF THE PREVIOUS 10 SESSIONS ON WIDESPREAD EXPECTATIONS THAT JAPAN'S CENTRAL BANK WILL CUT ITS OFFICIAL DISCOUNT RATE MONDAY'S ACTIVITY WAS SELECTIVE AMID A LACK OF ANY INVESTING FOCUS OR ENTHUSIASM BUT THE OVERALL MOOD REMAINED POSITIVE WITH LITTLE AGGRESSIVE SELLING FOLLOWING WEEKEND NEWS REPORTS THAT THE BANK OF JAPAN WOULD LOWER THE DISCOUNT RATE WHICH IT CHARGES ON LOANS TO COMMERCIAL BANKS BY ONEHALF PERCENTAGE POINT TO A HISTORIC LOW OF 2 ARBITRAGE SELLING LATE IN THE SESSION AND PROFITTAKING BY JAPANESE INSTITUTIONS ERASED MODERATE GAINS LOGGED IN MORNING TRADING STOCKS WITH SMALL AND MEDIUM CAPITALIZATIONS HAD STRONG GAINS FOLLOWING AN INCREASE OF MORE THAN 3 OVER THE PAST 10 SESSIONS IN THE NIKKEI WHICH TRACKS LARGECAPITALIZATION SHARES THE TOKYO MARKET IS EXPECTED TO REMAIN SUBDUED THIS WEEK IN ANTICIPATION OF FRIDAY'S QUARTERLY SETTLEMENT OF FUTURES AND OPTIONS CONTRACTS AND THE RELEASE BY THE BANK OF JAPAN OF ITS QUARTERLY TANKAN SURVEY OF BUSINESS SENTIMENT WHICH IS EXPECTED TO BE DISMAL THAT PESSIMISTIC OUTCOME WOULD BE GOOD NEWS FOR THE STOCK MARKET AS SOUR INDUSTRY SENTIMENT COULD PROVIDE MORE FODDER FOR THE CENTRAL BANK TO EASE CREDIT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 17 POINTS TO 30590 JUST FRACTIONALLY OFF THE DAY'S HIGH AFTER TROUGHING AT 30497 AND THEN STAGING A LATE UPTURN THE FT 30STOCK INDEX ADDED 60 POINTS TO 23968 VOLUME WAS 4211 MILLION SHARES COMPARED WITH 7274 MILLION SHARES IN THE PREVIOUS SESSIONS BUT THE MAIN INDEX'S ABILITY TO END ON A POSITIVE NOTE WAS VIEWED AS A GOOD SIGN AS THE LONDON EXCHANGE HAD BEEN EXPECTED TO BE HURT BY REPORTS THAT INTERNATIONAL INVESTORS WERE SWITCHING FUNDS OUT OF BRITAIN AND INTO SOME OTHER CONTINENTAL EUROPEAN MARKETS THAT NOW HAVE BRIGHTER PROSPECTS IN ADDITION WITH MORE THAN 20 BRITISH COMPANIES SCHEDULED TO REPORT EARNINGS THIS WEEK PRICES HAD BEEN EXPECTED TO BE PUSHED LOWER AS A DEFENSE AGAINST ANY NEGATIVE PROFIT NEWS YET FEW INVESTORS APPEARED TO ABANDON THE MARKET YESTERDAY IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1488 POINTS TO 191028 AS INVESTORS SNAGGED PROFITS FOLLOWING THE MARKET'S RECENT STRONG PERFORMANCE OF THE DAX ISSUES 3 ROSE AND 27 FELL DISAPPOINTING CORPORATE NEWS ALSO DEPRESSED PRICES IN THE AUTO SECTOR WHICH ALONG WITH OTHER CYCLICAL STOCKS SUCH AS THOSE IN THE CHEMICAL STEEL AND METAL SECTORS WERE HARDEST HIT IN PARIS STOCKS FINISHED WITH GAINS AFTER RISING GRADUALLY FROM A LOWER OPENING TECHNICAL FACTORS WERE MAINLY CITED FOR THE LATE BOOST WHILE DOLLARSENSITIVE STOCKS WERE WEAKER AS THE US CURRENCY CONTINUED TO LOSE GROUND IN EUROPEAN FOREIGNEXCHANGE DEALINGS AMSTERDAM SHARES WERE MIXED TO LOWER BECAUSE OF THE WEAKER DOLLAR AND THE US HOLIDAY IN MILAN PROFITTAKING CONTINUED LEAVING STOCK PRICES LOWER AS INVESTORS ALSO LOOKED TO TECHNICAL DEADLINES NEXT WEEK MADRID EQUITIES DRIFTED DOWN ON VOLUME THINNED BY THE US HOLIDAY THE SPANISH BANKING SECTOR RECORDED SHARP LOSSES THOUGH LATE FOREIGN BUYING BROUGHT BANKS UP FROM THE DAY'S LOWS IN STOCKHOLM PRICES CLIMBED PARTLY BECAUSE DECLINING MONEY MARKET RATES OFFSET SOME BIG ISSUES' PRICE DROPS ZURICH SHARES FELL SHARPLY DRAGGED DOWN BY PROFITTAKING IN THE BANKING SECTOR AND BY DOLLARRELATED SELLING AMONG INDUSTRIAL STOCKS IN SYDNEY SHARE PRICES STRENGTHENED BOLSTERED BY GAINS IN BIG BLUE CHIPS IN SINGAPORE THOUGH PROFITTAKING SENT SHARES TUMBLING FROM THE DAY'S HIGHS SUSTAINED BUYING MOMENTUM HELPED THE EXCHANGE'S KEY INDEX FINISH AT A NEW HIGH IN SEOUL STOCKS SURGED SUPPORTED BY SOUTH KOREAN FINANCE MINISTRY MEASURES AIMED AT HELPING DEBTRIDDEN MUTUAL FUND COMPANIES BUT IN TAIPEI SHARES HIT A NEW LOW ATTRIBUTED TO PESSIMISM ABOUT TAIWAN'S ECONOMY AND POLITICAL SITUATION AMONG CORPORATE DEVELOPMENTS IN TOKYO TOSHIBA FELL 6 YEN TO 707 YEN 667 THE MAKER OF COMPUTERS POWER EQUIPMENT SEMICONDUCTORS AND CONSUMER ELECTRONICS SAID IT PLANNED TO CUT 5000 OR 66 OF THE JOBS AT ITS PARENT COMPANY THROUGH ATTRITION OVER THE NEXT SEVERAL YEARS TOSHIBA SAID THIS WAS A STRATEGIC DECISION TO FOCUS ON HIGHERVALUEADDED PRODUCTS THAT REQUIRE FEWER EMPLOYEES TO MAKE BUT SOME ANALYSTS VIEWED THE MOVE MORE AS COSTCUTTING PROMPTED BY POOR BUSINESS CONDITIONS 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 9309070093 930907 SMITHKLINE MAPS OUT RESEARCH ROUTE DRUG MAKER ON NEW ROAD WITH GENE DATA COMPANY BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL SMITHKLINE BEECHAM PLC HAS FORGED A SPATE OF PARTNERSHIPS WITH FLEDGLING BIOTECHNOLOGY COMPANIES IN RECENT MONTHS BUT NONE AS EXOTIC AS A 10YEAR RESEARCH ACCORD WITH HUMAN GENOME SCIENCES INC HUMAN GENOME SCIENCES BASED IN ROCKVILLE MD IS A GENESEQUENCING SPECIALIST DEVOTED TO CONVERTING ARCANE DATA ABOUT THE HUMAN GENOME INTO USEFUL HEALTHCARE PRODUCTS FORMED LAST YEAR THE FIRM IS ONE OF THE FIRST COMMERCIAL VENTURES SPAWNED IN THE WAKE OF THE SOCALLED HUMAN GENOME PROJECT THE INTERNATIONAL CAMPAIGN LAUNCHED IN 1990 TO LOCATE AND IDENTIFY ALL 100000 GENES HIDDEN IN THE CHROMOSOMES OF EVERY HUMAN CELL THE GENESEQUENCING PHASE OF THE HUMAN GENOME PROJECT INVOLVES TEDIOUS CHEMICAL ANALYSIS OF THREE BILLION SOCALLED BASE PAIRS THAT MAKE UP THE HUMAN GENETIC CODE THAT SEQUENCING TASK WILL BE SPREAD OUT AMONG RESEARCH LABS AND PRIVATE COMPANIES AROUND THE WORLD IT WON'T BE COMPLETED UNTIL LATE IN THE DECADE ANALYSTS PREDICT HUMAN GENOME SCIENCES AND ROUGHLY A DOZEN OTHER INDEPENDENT COMPANIES FORMED IN RECENT MONTHS HOPE TO PARLAY THE MOUNTAIN OF AVAILABLE MAPPING AND SEQUENCING DATA INTO PRODUCTS WELL BEFORE THE ENTIRE HUMAN GENOME PROJECT IS COMPLETED BUT PRODUCTS BASED ON GENE SEQUENCING STILL AREN'T LIKELY TO REACH MARKETS UNTIL THE END OF THE 1990S ANALYSTS PREDICT SMITHKLINE BY BECOMING THE FIRST MAJOR DRUG MAKER TO JUMP ABOARD THE GENESEQUENCING BANDWAGON LENDS ADDED CREDIBILITY TO THE ESOTERIC TECHNOLOGY THESE ANALYSTS SAY CONSEQUENTLY OTHER GIANT DRUG MAKERS ARE LIKELY TO FORGE SIMILAR LINKS WE'RE AHEAD OF EVERYONE IN GRABBING A PROPRIETARY POSITION IN GENE SEQUENCING BUT IT'S VERY MUCH A QUESTION OF WATCH THIS SPACE' SAID GEORGE POSTE CHAIRMAN OF PHARMACEUTICAL RESEARCH AND DEVELOPMENT AT SMITHKLINE WITHOUT BREACHING ANY CONFIDENTIALITY I KNOW THERE WERE FIVE OTHER MAJOR COMPANIES THAT WE PIPPED BEAT AT THE POST FOR HUMAN GENOME SCIENCES THOSE COMPANIES ARE NOW LOOKING VERY ACTIVELY AT THIS AREA AND PRESUMABLY SOME OF THE OTHER STARTUP COMPANIES MAY WELL BE BENEFICIARIES TERMS OF THE SMITHKLINEHUMAN GENOME SCIENCES ACCORD WEREN'T DISCLOSED DR POSTE CONFIRMED THAT SMITHKLINE HAS ACQUIRED AN EQUITY STAKE IN THE US ALLY AND WILL HAVE SUBSTANTIAL ANNUALIZED R&D INVESTMENT COST WHICH EXTENDS OVER A 10YEAR AGREEMENT HE DECLINED TO ELABORATE BUT INDUSTRY ANALYSTS ESTIMATE THAT THE ACCORD STIPULATES PAYMENTS FROM SMITHKLINE OF WELL OVER 100 MILLION THAT'S STILL A SMALL SLICE OF DR POSTE'S ANNUAL RESEARCH BUDGET ANALYSTS CONTEND THAT THE INVESTMENT IS SENSIBLE NOT LEAST OF ALL AS THE KIND OF TECHNOLOGICAL INSURANCE POLICY BIG COMPANIES SUCH AS SMITHKLINE CAN AFFORD NOBODY WILL KNOW WHO THE WINNERS IN THIS WILL BE FOR SOME TIME BUT HUMAN GENOME SCIENCES IS PROBABLY AS GOOD A PARTNER AS ANY FOR AN OUTSIDER WANTING TO GET INVOLVED IN THIS AREA SAID JO WALTON A LONDONBASED PHARMACEUTICAL ANALYST AT LEHMAN BROTHERS DR POSTE HAS NO DOUBT THAT GENE SEQUENCING WILL PROVE A PIVOTAL TECHNOLOGY IN A RECENT INTERVIEW HE EMPHASIZED THAT IN CONTRAST WITH SMITHKLINE'S OTHER BIOTECH PARTNERSHIPS THE HUMAN GENOME SCIENCES LINKUP ADDRESSES A CORE TECHNOLOGY THAT IMPACTS EVERY SINGLE DISCOVERY PROGRAM WE HAVE POTENTIAL APPLICATIONS STRETCH BEYOND POTENTIAL THERAPEUTIC MEDICINES TO PIONEERING DIAGNOSTIC PRODUCTS THAT COULD BOLSTER SMITHKLINE'S POSITION AS A MAJOR SUPPLIER OF CLINICAL LABORATORY TESTS HE SAID MORE AND MORE MAJOR DISEASES ARE BEGINNING TO SHOW THAT THEY HAVE WELLDEFINED UNDERLYING GENETIC LESIONS DR POSTE EXPLAINED THOSE LESIONS OR DEFECTS PROBABLY ARE A TIPOFF OF PREDISPOSITION TO CERTAIN DISEASES AND IT'S GOING TO BE FEASIBLE IN THE FUTURE TO MAP THAT SOMEONE IS AT RISK OF A SPECIFIC DISEASE WE'RE ON THE THRESHOLD OF ALMOST A PARADIGM SHIFT IN MEDICINE TO THE PREDICTANDPREVENT MODE AS OPPOSED TO THE TREATMENTONLY MODE ON A MORE PRAGMATIC LEVEL DETAILED KNOWLEDGE ABOUT GENE SEQUENCES COULD ACCELERATE DRUG DISCOVERY AND DEVELOPMENT IT WILL PERMIT US TO GET OUR HANDS ON THE EXACT HUMAN PROTEIN THAT IS ALTERED IN A GIVEN DISEASE DR POSTE DECLARED WE WON'T HAVE TO RELY ON MOUSE OR RAT RECEPTORS OR SURROGATES AND THAT HUMANRECEPTOR MATERIAL WILL BE AVAILABLE IN LARGE AMOUNTS FOR VERY LARGE NUMBERS OF RECEPTORS SPEEDING UP THE OVERALL PROCESS OF HUNTING FOR THERAPEUTIC AGENTS WHICH WILL INTERACT WITH THE TARGET SUBSTANCE BUT CURING DISEASES WILL TAKE MORE THAN COLLECTING GENE SEQUENCES AFTER YEARS OF HUNTING SCIENTISTS FOUND THE GENE RESPONSIBLE FOR CYSTIC FIBROSIS A FEW YEARS AGO IN 27 PIECES STRETCHED OVER 10000 BASE PAIRS OF HUMAN CHROMOSOME NO 7 A SLIGHT GENETIC DEFECT THE DELETION OF ONLY THREE BASE PAIRS IS BELIEVED TO CAUSE ABOUT 70 OF ALL CASES OF CYSTIC FIBROSIS APPLYING THE GENETICSEQUENCE KNOWHOW SCIENTISTS DISCOVERED THE PROTEIN CODED BY THE DEFECTIVE GENE RIGHT WHERE THEY SUSPECTED IN THE CELL MEMBRANE BUT EXACTLY HOW THAT PROTEIN CAUSES THE DISEASE STILL ISN'T CLEAR AND CYSTIC FIBROSIS CONTINUES TO ELUDE A CURE DR POSTE ESTIMATES THAT ABOUT 3000 GENES DEFINITIVELY ARE KNOWN LEAVING 97000 GENES OUT THERE IN VARIOUS STAGES OF EXPLORATION COMPLETE BLACK BOXES TO EVERYONE CRUCIAL TO THE RACE TO FIND NEW MEDICINES WILL BE THE CAPACITY TO DISTILL THE GENETIC MATERIAL IN ABOUT 3 OF THE HUMAN GENOME FROM VAST APPARENTLY MEANINGLESS STRETCHES OF DNA ONE OF HUMAN GENOME SCIENCES' MAIN ATTRACTIONS TO SMITHKLINE IS A CLOSE RELATIONSHIP WITH CRAIG VENTER A FORMER US NATIONAL INSTITUTES OF HEALTH SCIENTIST WHO DEVELOPED A METHOD OF DETERMINING WHETHER A FRAGMENT OF DNA IS PART OF A GENE DR VENTER NOW DOES HIS GENE SLEUTHING AT THE INSTITUTE FOR GENOMIC RESEARCH FOUNDED AND FUNDED BY HUMAN GENOME SCIENCES IN RETURN FOR EXCLUSIVE RIGHTS TO PRODUCTS DEVELOPED ON THE BASIS OF HIS WORK DR POSTE STRESSES THAT SMITHKLINE IS AIMING FOR A FOCUSED APPLICATION OF GENE MAPPING TO THOSE DISEASES ALREADY OF SUBSTANTIAL INTEREST TO US BUT IN AN UNORTHODOX TWIST HE HOLDS OPEN THE DOOR TO DEALING SURPLUS GENE DATA WHEN OPPORTUNITIES APPEAR WE ARE PROBABLY GOING TO HAVE MANY MORE OPPORTUNITIES THAN WE CAN UTILIZE INTERNALLY HE SAID THAT MEANS GENES CAN BECOME CURRENCY AND A VEHICLE FOR TRADING TO CREATE OTHER STRATEGIC ALLIANCES OF COURSE WHEELING AND DEALING IN GENETIC DATA COULD SPARK POLITICAL CONTROVERSY ESPECIALLY IN PARTS OF EUROPE WHERE BIOTECH AND OTHER GENEBASED SCIENCE STIRS FIERCE OPPOSITION FROM GREEN OR PROECOLOGY GROUPS DR VENTER'S ATTEMPTS TO PATENT GENE FRAGMENTS FOUND BY HIS LAB BEFORE THE FULL GENE IS DISCOVERED HAVE SPARKED BITTER DEBATE IN THE US DR POSTE DECLINED TO DISCUSS PENDING GENE PATENT APPLICATIONS SUBMITTED BY DR VENTER NOTING ONLY THAT THE WHOLE AREA OF PATENTING GENES IS STILL AMBIGUOUS WE FEEL THE ONLY SOLID GUARANTEE OF PATENTABILITY IS TO GET BOTH THE GENE AND ITS PRODUCT AND THEN SHOW WHAT THAT GENE PRODUCT DOES 9309070092 930907 MEDIOBANCA ISSUE MAY BE TIED TO BAILOUTS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN AN UNEXPECTED 102 TRILLION LIRE 638 MILLION RIGHTS ISSUE BY ITALIAN INVESTMENT BANK MEDIOBANCA PROMPTED SPECULATION THAT THE SECRETIVE MILAN BANK MAY USE THE CASH TO BAIL OUT SEVERAL OF ITALY'S FINANCIALLY TROUBLED COMPANIES THE BANK ANNOUNCED THE MIXED RIGHTS AND BONUS ISSUE WITHOUT EXPLAINING WHAT THE CASH WOULD BE USED FOR IN A STATEMENT MEDIOBANCA SAID IT WILL ISSUE 34 MILLION NEW SHARES AS A BONUS ISSUE OFFERING 1 BONUS SHARE FOR EVERY 10 HELD IT WILL ALSO OFFER 102 MILLION NEW SHARES FOR 10000 LIRE EACH ON A 3FOR10 BASIS NOMINAL SHARE CAPITAL WILL INCREASE TO 476 BILLION LIRE FROM 340 BILLION LIRE THE COMPANY ALSO SAID PROFIT FOR THE FISCAL YEAR ENDED JUNE 30 DECLINED TO 2001 BILLION LIRE FROM 262 BILLION LIRE THE YEAR EARLIER ANALYSTS SAID THAT EARNINGS WERE IN LINE WITH EXPECTATIONS BUT ADDED THAT THE RIGHTS ISSUE COMES AS A SURPRISE AND COULD DAMAGE THE BANK'S SHARE PRICE IN TRADING TODAY THE STOCK CLOSED AT 17900 LIRE FRIDAY ON THE MILAN STOCK EXCHANGE DOWN 100 LIRE THEY HAVEN'T SAID HOW THEY WANT TO USE THE MONEY AND IT COULD BE NEGATIVE IF THIS SIGNALS A NEW SEASON OF RIGHTS ISSUES ON THE MARKET SAID ALESSANDRO PACCHIANI FUND MANAGER WITH EUROMOBILIARE MERCHANT BANK IN MILAN HE SAID THE CASH COULD BE USED AS RESERVES FOR MEDIOBANCA TO FINANCE UPCOMING RIGHTS ISSUES FOR A WHOLE CROP OF ITALIAN COMPANIES NOW STRAPPED FOR CASH THE BANK MUST SUBSCRIBE TO A PREVIOUSLY ANNOUNCED 1058 BILLION LIRE CAPITAL INCREASE IN PRIVATE INSURANCE GROUP FONDIARIA IN ORDER TO RETAIN ITS CURRENT 15 HOLDING MR PACCHIANI SAID A LIKELY SCENARIO IS THEY WANT TO RECAPITALIZE THEIR CLIENTS THROUGH RIGHTS ISSUES OR DEBTFOREQUITY SWAPS SAID PETER GYLLENBAGA ITALY ANALYST WITH CREDIT SUISSE FIRST BOSTON IN MILAN IF THEY'RE INCREASING THEIR EQUITY PORTFOLIO THAT MEANS THEY'RE INVESTING IN COMPANIES THAT ARE IN FINANCIAL TROUBLE THAT IN TURN WILL INCREASE THEIR OWN RISK PROFILE OF ASSETS MR GYLLENBAGA SAID THAT UNDER NEW BANKING LAWS MEDIOBANCA WOULD HAVE TO INCREASE SHAREHOLDERS' EQUITY IN ORDER TO FURTHER INCREASE THE EQUITY PORTFOLIO SOMETHING THAT EXPLAINS THE NEED FOR THE RIGHTS ISSUE THEY DON'T NEED THE CASH SO I THINK THAT'S THE MOST LOGICAL EXPLANATION HE SAID ANOTHER POSSIBILITY IS THAT THE CASH COULD BE USED AS RESERVES TO INVEST IN ITALY'S EVENTUAL PRIVATIZATION PROGRAM SPECIFICALLY THE PLANNED SALE OF BANCA COMMERCIALE ITALIANA SOME ANALYSTS SAID OPTIMISTICALLY THEY WOULD USE THE CASH TO FINANCE PRIVATIZATIONS SAID FAUSTO GALEOTTI DIRECTOR OF RESEARCH AT PASFIN SECURITIES IN MILAN PESSIMISTICALLY THEY'LL USE IT FOR FUTURE RIGHTS ISSUES IN ADDITION TO THE ALREADYANNOUNCED CAPITAL INCREASES ANALYSTS HAVE BEEN SPECULATING THAT OTHER MAJOR ITALIAN INDUSTRIAL GROUPS SUCH AS FIAT SPA AND PIRELLI SPA MAY GO TO THE MARKET FOR CASH CALLS SOON TAKING ADVANTAGE OF THE INCREASED LIQUIDITY IN THE MILAN BOURSE 9309070091 930907 WHO'S NEWS TERMIFLEX DIRECTOR PR EBNER RESIGNS MERRIMACK NH TERMIFLEX CORP SAID PETER R EBNER RESIGNED FROM ITS BOARD LEAVING FIVE DIRECTORS WILLIAM FLETCHER CHIEF EXECUTIVE OFFICER DECLINED TO EXPLAIN THE REASON FOR THE ACTION AND MR EBNER WHO OWNS A 5 STAKE IN THE MAKER OF COMPUTER TERMINALS COULDN'T BE REACHED THE RESIGNATION FOLLOWS A DECISION BY MR EBNER LAST WEEK NOT TO PARTICIPATE IN A PROPOSAL TO TAKE TERMIFLEX PRIVATE UNDER THE PROPOSAL MR EBNER AND MR FLETCHER WHO OWNS A 16 STAKE IN TERMIFLEX PLANNED TO FORM A SEPARATE PRIVATELY HELD COMPANY THAT WOULD ACQUIRE TERMIFLEX'S 14 MILLION SHARES OUTSTANDING FOR 3 A SHARE IN CASH AND 2 A SHARE IN PRINCIPAL AMOUNT OF SUBORDINATED DEBT FOR A 7 MILLION TRANSACTION MR FLETCHER 58 YEARS OLD SAID MR EBNER 45 WITHDREW FROM THE PROPOSAL CITING AMONG OTHER THINGS THE LIKELY TERMS OF ANY FINANCING HE DECLINED TO ELABORATE WITH MR EBNER'S WITHDRAWAL FROM THE PLAN TERMIFLEX SAID THE PROPOSAL MAY NO LONGER BE FEASIBLE MR EBNER WHO HAS SERVED ON THE TERMIFLEX BOARD FOR THREE YEARS IS AN INDEPENDENT INVESTOR THE COMPANY SAID 9309070090 930907 CLINTON HEALTH PLAN MOVES TOWARD BIPARTISAN ACCORD BROADBASED TAX SCRAPPED MEDICARE MEDICAID CAPS SET IN BID TO WOO GOP BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW DETAILS OF PRESIDENT CLINTON'S HEALTH PLAN OUTLINED BY ADMINISTRATION OFFICIALS OVER THE WEEKEND SHOW A PACKAGE TAKING SHAPE THAT MOVES TOWARD COMPROMISE WITH REPUBLICANS THE PLAN THE PRESIDENT HOPES TO UNVEIL SEPT 22 WON'T INCLUDE A CONTROVERSIAL BROADBASED TAX INCREASE BUT WILL CONTAIN STRICT SPENDING CAPS ON THE BIG MEDICAL ENTITLEMENT PROGRAMS MEDICARE AND MEDICAID THAT'S A FAR MORE PALATABLE MIX TO THE GOP THAN SOME MEASURES CONSIDERED EARLIER INCLUDING A NEW PAYROLL TAX SHARP DISAGREEMENTS REMAIN HOWEVER MANY REPUBLICAN LEGISLATORS ALREADY ARE VOWING TO FIGHT THE ADMINISTRATION'S REQUIREMENT THAT ALL EMPLOYERS PAY FOR MUCH OF THE COST OF THEIR EMPLOYEES' HEALTH CARE AND THEY ARE LIKELY TO OPPOSE MR CLINTON'S PROPOSAL FOR A STRICT CAP ON THE ANNUAL GROWTH IN PRIVATE HEALTHINSURANCE PREMIUMS CONTENDING SUCH A MEASURE INTERFERES WITH MARKET FORCES MOREOVER BY MOVING TOWARD THE MIDDLE THE ADMINISTRATION IS CERTAIN TO SPARK OPPOSITION FROM LIBERAL DEMOCRATS MANY OF WHOM ARE UPSET ABOUT THE CALL FOR DEEP CUTS IN THE GROWTH OF MEDICARE AND MEDICAID BUT THE PLAN TAKING SHAPE IN THE WHITE HOUSE IS BEGINNING TO SUGGEST THE OUTLINES OF A BIPARTISAN COMPROMISE ON HEALTH CARE THAT COULD EMERGE FROM CONGRESS SOMETIME NEXT YEAR I THINK THERE'S GOING TO HAVE TO BE A LOT OF POSTURING POSITIONING AND POLITICAL DANCING TO GET TO THE POINT WHERE MODERATE REPUBLICANS AND DEMOCRATS CAN SIT DOWN AND WORK WITH EACH OTHER SAID THOMAS SCULLY A FORMER BUSH ADMINISTRATION BUDGET AND HEALTH OFFICIAL BUT I THINK THAT WILL HAPPEN IN AN APPEARANCE SUNDAY ON NBCTV'S MEET THE PRESS SEN JOHN CHAFEE WHO LEADS A GOP HEALTH TASK FORCE IN THE SENATE SAID HE OPPOSES THE MANDATE REQUIRING EMPLOYERS TO CONTRIBUTE TO THEIR WORKERS' HEALTH PREMIUMS BUT THAT IT WASN'T A DEALBREAKER WE'VE MADE GREAT EFFORTS NOT TO DRAW LINES IN THE SAND AND SAY WE'RE ABSOLUTELY NOT GOING TO DO THIS THIS IS NONNEGOTIABLE THE RHODE ISLAND REPUBLICAN SAID AND HE ADDED I BELIEVE THAT NOT IN THIS CALENDAR YEAR BUT NEXT YEAR IN 1994 WE'RE GOING TO ARRIVE AT A CONSENSUS THE CONSENSUS MAY BE EASIER TO REACH IN THE SENATE THAN IN THE HOUSE WHERE MODERATES MUST DEAL WITH THE EXTREME WINGS OF BOTH PARTIES SOME 88 HOUSE DEMOCRATS HAVE SIGNED ON TO A BILL ESTABLISHING A CANADIANSTYLE SYSTEM WHERE THE GOVERNMENT PAYS MOST HEALTH BILLS WHILE MANY HOUSE REPUBLICANS ARE STEADFASTLY OPPOSED TO ANY FORM OF EMPLOYER MANDATE SMALL EMPLOYERS CANNOT AFFORD TO DO THAT DECLARED GOP REP DICK ARMEY OF TEXAS ON MEET THE PRESS SUNDAY HOW HAVE YOU SERVED EMPLOYEES AND THE SMALL MOM AND POP ENTREPRENEUR WHEN YOU'VE DRIVEN THEM OUT OF BUSINESS ADMINISTRATION OFFICIALS SAID THE PRESIDENT HAS MADE TENTATIVE DECISIONS ON ALL THE MAJOR ELEMENTS OF HIS HEALTHCARE PLAN INCLUDING SETTING A FEDERALLY GUARANTEED BENEFITS PACKAGE FOR ALL AMERICANS THAT COVERS MOST MEDICALLY NECESSARY SERVICES BEGINNING TOMORROW HE AND HILLARY RODHAM CLINTON WOULD CONSULT EXTENSIVELY WITH LAWMAKERS FROM BOTH PARTIES AND AIDES SAID COULD REVISE THE PROPOSAL BASED ON THOSE CONVERSATIONS ACCORDING TO SENIOR ADMINISTRATION OFFICIALS HERE ARE THE MAJOR ELEMENTS OF THE CLINTON HEALTH PLAN SO FAR ALL CITIZENS AND LEGAL RESIDENTS OF THE US WOULD BE GUARANTEED COVERAGE FOR HOSPITALIZATION EMERGENCY SERVICES INCLUDING EMERGENCYROOM CARE AND AMBULANCE SERVICES PHYSICIAN SERVICES PREVENTIVE CARE INCLUDING CHILD IMMUNIZATIONS PRENATAL CARE MAMMOGRAMS CHOLESTEROL SCREENING WELLBABY CARE AND EVENTUALLY ADULT PHYSICALS DENTAL CARE FOR CHILDREN ADULT DENTAL CARE BY THE YEAR 2000 EYE CARE PRESCRIPTION DRUGS REHABILITATION SERVICES AND SOME MENTALHEALTH SERVICES AT THE OUTSET MENTALHEALTH SERVICES WOULD BE LIMITED TO 60 INPATIENT DAYS A YEAR 30 DAYS FOR EACH EPISODE OF ILLNESS AND 30 PSYCHOTHERAPY VISITS A YEAR IN 2000 THE LIMITS ON INPATIENT CARE WOULD EASE TO 90 DAYS A YEAR AND THE CEILING ON PSYCHOTHERAPY VISITS WOULD BE LIFTED ASIDE FROM PSYCHOTHERAPY THERE ARE NO INITIAL LIMITS ON OUTPATIENT MENTAL HEALTH SERVICES ALSO BY 2000 A SEPARATE LONGTERM CARE PROGRAM OFFERING NURSING HOME AND HOME AND COMMUNITYBASED CARE WOULD BE PHASED IN ON A SLIDING SCALE FEE BASED ON ABILITY TO PAY ADMINISTRATION AND OUTSIDE ACTUARIES ESTIMATE THAT IF ALL OF MR CLINTON'S PROPOSALS TOOK EFFECT IN 1994 THE COST OF THE BENEFITS PACKAGE WOULD BE 1800 FOR INDIVIDUALS AND 4200 FOR FAMILIES THE PRICE WOULD VARY BY STATE AND REGION UNDER A FEEFORSERVICE OPTION WHERE ENROLLEES GO TO THE DOCTOR OF THEIR CHOICE AND ARE BILLED FOR EACH SERVICE PATIENTS GENERALLY WOULD BE REQUIRED TO PAY 20 OF THE BILL WHILE INSURANCE WOULD COVER 80 ANNUAL DEDUCTIBLES ARE 200 FOR INDIVIDUALS AND 400 FOR FAMILIES THE SAME BENEFITS PACKAGE WOULD BE AVAILABLE THROUGH A VARIETY OF HEALTH MAINTENANCESTYLE PLANS WHICH REQUIRE PATIENTS TO CHOOSE FROM WITHIN A NETWORK OF DOCTORS AND HOSPITALS HMO PLANS WON'T HAVE DEDUCTIBLES AND WOULD GENERALLY REQUIRE PATIENTS TO PAY 10 FOR EACH VISIT THE PRESCRIPTION DRUG BENEFIT WOULD HAVE A 250 DEDUCTIBLE AND A 20 COPAYMENT UNDER THE FEEFORSERVICE PLAN AND THE HMO OPTION WOULD REQUIRE A 5 COPAYMENT FOR EACH PRESCRIPTION AND NO DEDUCTIBLE THERE WILL ALSO BE A THIRD HYBRID OPTION THAT INCORPORATES FEATURES FROM BOTH THE HMO AND FEEFORSERVICE PLANS ENROLLEES COULD SELECT DOCTORS AND HOSPITALS FROM A NETWORK AND PAY THE LOWER COPAYMENTS OF THE HMO PLAN BUT THEY COULD SEEK TREATMENT OUTSIDE THE NETWORK BY PAYING THE GREATER OUTOFPOCKET FEES UNDER THE FEEFORSERVICE OPTION THE PACKAGE WOULD BE PAID MOSTLY BY THE NATION'S EMPLOYERS FROM THE LARGEST FORTUNE 500 COMPANY TO THE SMALLEST LAUNDROMAT ALL EMPLOYERS WOULD BE REQUIRED TO PAY ON BEHALF OF EACH WORKER AT LEAST 80 OF THE AVERAGE PREMIUM FOR A HEALTH PLAN IN THEIR REGION THE REST WOULD COME FROM INDIVIDUAL CONTRIBUTIONS AND FROM THE GOVERNMENT SMALL BUSINESSES AND FIRMS WITH LOW AVERAGE WAGES WOULD RECEIVE SUBSIDIES FROM THE FEDERAL GOVERNMENT TO HELP PAY THE PREMIUMS EMPLOYERS WITH FEWER THAN 50 WORKERS AND AVERAGE ANNUAL WAGES OF LESS THAN 24000 WOULD BE REQUIRED TO CONTRIBUTE NO MORE THAN 35 OF THEIR PAYROLL FIRMS WITH MORE THAN 50 WORKERS BUT WITH AVERAGE ANNUAL WAGES OF UNDER 24000 WOULD HAVE A CEILING OF SOMEWHERE BETWEEN 75 TO 85 OF PAYROLL ON THEIR PREMIUM CONTRIBUTIONS THE GOVERNMENT WOULD PAY FOR THE SUBSIDIES WITH FUNDS FROM THREE SOURCES REVENUE FROM INCREASED TAXES ON CIGARETTES AND POSSIBLY ALCOHOL EXPECTED TO BE 12 BILLION TO 16 BILLION A YEAR AN ESTIMATED 19 BILLION IN ANNUAL SAVINGS FROM MEDICARE AND MEDICAID AS SOME PEOPLE NOW COVERED BY THOSE PROGRAMS BEGIN GETTING INSURANCE FROM THEIR EMPLOYERS AN EVENTUAL 15 BILLION IN TAX REVENUE GAINED AS NEW MEDICAL COST CONTROLS ALLOW CORPORATIONS TO CHANNEL MONEY THEY WOULD HAVE SPENT ON HEALTH CARE INTO WAGES AND PROFITS WHICH ARE TAXABLE THE ADMINISTRATION IS ALSO COUNTING ON SUBSANTIAL SAVINGS IN MEDICARE AND MEDICAID THROUGH THE SPENDING CAPS TO HELP FUND PRESCRIPTION DRUG COVERAGE FOR THE ELDERLY HEALTH PREMIUMS FOR LOWINCOME PEOPLE AND A NEW LONGTERM CARE PROGRAM STARTING IN FISCAL 1996 WHICH BEGINS OCT 1 1995 A BUDGET WOULD TAKE EFFECT LIMITING THE RATE OF INCREASE IN PRIVATE HEALTH INSURANCE PREMIUMS AND FEDERAL SPENDING ON MEDICARE AND MEDICAID THE PUBLIC HEALTH PROGRAMS FOR THE ELDERLY DISABLED AND POOR BY 1998 OR 1999 OFFICIALS SAID THE CAPS WOULD BE LOWERED TO THE ANNUAL RATE OF INCREASE IN THE CONSUMER PRICE INDEX PLUS THE RATE OF GROWTH IN THE POPULATION AND POSSIBLY AN ADDITIONAL PERCENTAGE POINT HOWEVER ADMINISTRATION OFFICIALS HAVEN'T SPECIFIED HOW THEY PLAN TO MEET THOSE TIGHT CAPS EMPLOYERS WOULD BE ABLE TO DEDUCT THE COST OF THE STANDARD BENEFITS PACKAGE WHICH THEIR EMPLOYEES WOULD RECEIVE TAXFREE BUT EMPLOYERPROVIDED BENEFITS BEYOND THOSE IN THE FEDERALLY GUARANTEED PACKAGE WON'T HAVE A TAX ADVANTAGE UNIONS HAVE VEHEMENTLY OPPOSED ANY TAXATION OF HEALTH BENEFITS BUT THIS SOCALLED TAX CAP IS SO NARROW THAT IT IS LIKELY TO AFFECT VERY FEW PEOPLE IT WON'T TAKE EFFECT UNTIL AFTER 2000 WHEN THE BENEFITS PACKAGE IS FULLY PHASED IN MOVEOVER ANY EXISTING EMPLOYEE BENEFITS PLANS WILL RETAIN THEIR TAXEXEMPT STATUS FOR EIGHT TO 10 YEARS AND THE TAX ADVANTAGE WILL BE RETAINED IF EMPLOYERS CHOOSE TO PROVIDE FIRSTDOLLAR COVERAGE FOR THE STANDARD BENEFITS PACKAGE THAT IS IF THEY PAY ALL THE PREMIUMS PLUS THE COPAYMENTS AND DEDUCTIBLES HOWEVER IF A COMPANY BUYS ITS WORKERS A SUPPLEMENTAL POLICY COVERING SERVICES NOT IN THE STANDARD BENEFITS PACKAGE SUCH AS COSMETIC SURGERY INVITRO FERTILIZATION OR ADULT EYEGLASSES IT WON'T BE ABLE TO DEDUCT THE COST AND ITS EMPLOYEES WOULD HAVE TO PAY TAX ON THE VALUE OF THE BENEFIT MOST EVERYONE WOULD BUY THEIR COVERAGE THROUGH NEWLY CREATED REGIONAL NETWORKS IN EACH STATE WHICH WOULD REPRESENT ALL THE INDIVIDUALS AND BUSINESSES IN AN AREA HEALTH PLANS THAT MEET FEDERAL STANDARDS WOULD BE ABLE TO COMPETE FOR THE BUSINESS OF THOSE ENROLLED IN THE ALLIANCE THE ALLIANCES WOULD COLLECT CONTRIBUTIONS FROM EMPLOYERS EMPLOYEES AND SUBSIDIES FROM THE FEDERAL GOVERNMENT EACH INDIVIDUAL AND FAMILY WOULD THEN BE ABLE TO CHOOSE A HEALTH PLAN LISTED WITH THE ALLIANCE LARGE CORPORATIONS PROBABLY THOSE WITH MORE THAN 5000 EMPLOYEES WOULD BE ABLE TO FORM THEIR OWN CORPORATE ALLIANCE BUT THEY WOULD HAVE TO ADHERE TO THE SAME FEDERAL GUIDELINES AND OFFER THE STANDARD BENEFITS PACKAGE THE PLAN WOULD BE PHASED IN STATE BY STATE WITH AN ABSOLUTE DEADLINE OF DEC 31 1997 ASSUMING THE PLAN IS ENACTED BY THE MIDDLE OF NEXT YEAR EACH STATE WOULD BE REQUIRED TO GUARANTEE UNIVERSAL COVERAGE UNDER THE FEDERAL GUIDELINES AFTER A STATE SETS UP HEALTH ALLIANCES BUSINESSES WOULD HAVE TO MEET THE REQUIREMENT TO PROVIDE HEALTH INSURANCE AND THE SPENDING CAPS WOULD BEGIN TAKING EFFECT ADMINISTRATION OFFICIALS BELIEVE SOME STATES SUCH AS HAWAII FLORIDA MINNESOTA VERMONT AND WASHINGTON WOULD PROBABLY BE ABLE TO COME INTO THE SYSTEM IN 1995 THESE STATES HAVE ALREADY BEEN DEVELOPING PLANS FOR UNIVERSAL HEALTH COVERAGE 9309070088 930907 ENTERPRISE BARS USE ZANINESS TO WIN BACK PATRONS BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BY DAY TERRY WHITE AND JIM HOLT ARE BANKERS BUT ON THIS SUMMER WEEKNIGHT AT THE CADDYSHACK BAR IN MANHATTAN THEY DO BATTLE AS SUMO WRESTLERS HOPPING AROUND IN INFLATABLE RUBBER SUITS THE MEN SLAM BELLIES STICK HIM LIKE A PIG SOMEONE YELLS FROM THE NOISY CROWD MR HOLT LANDS ON THE MAT AND MR WHITE FALLS ON HIM GETTING THE PIN THEY LIE IN A PILE HELPLESS UNTIL PULLED UP BY THE ARMS MY MOM TOLD ME ABOUT THIS BAR SAYS THE 25YEAROLD MR WHITE I PROBABLY WOULDN'T HAVE COME IF IT WEREN'T FOR THE SUMO A FEW MONTHS AGO OWNER ADAM POWERS WAS READY TO SELL CADDYSHACK BUT BY REINVENTING THE BAR AS A PLAYGROUND MR POWERS HAS FOUND SUCCESS IN THE HIGHLY COMPETITIVE NEW YORK BAR SCENE CADDYSHACK IS BUZZING WITH PATRONS EVERY NIGHT HE SAYS AND REVENUE HAS JUMPED 50 SINCE THE INTRODUCTION OF A FEW GAMES AFTER YEARS OF FLAT ALCOHOL SALES BARS ARE RELYING ON MORE AND ZANIER PROMOTIONS TO DRAW CUSTOMERS FROM LOS ANGELES TO SMALLTOWN PENNSYLVANIA BARS ARE OFFERING PATRONS THE CHANCE TO SING KARAOKE ROLL IN OVERSIZED BOWLING BALLS OR PLAY MUSICAL CHAIRS THE STRATEGY MAY BE NUTTY BUT MANY BAR OPERATORS SAY IT MAKES A SERIOUS BOTTOMLINE DIFFERENCE HAVING A BAR IS MORE THAN SELLING ALCOHOL NOW YOU HAVE TO SELL FUN SAYS JIM RESSLER VICE PRESIDENT OF GLOBAL ENTERTAINMENT SYNDICATE INC AND A FUN CONSULTANT WHO WORKS WITH MR POWERS WHEN PEOPLE HAVE FUN THEY SPEND MORE FREELY HE SAYS THAT'S A TALL ORDER THESE DAYS PEOPLE DON'T GO TO BARS AS OFTEN OR DRINK AS MUCH AS THEY ONCE DID VIDEO RENTALS AND CABLE TELEVISION KEEP MORE AMERICANS AT HOME THE RECESSION HAS MADE SOME MORE FRUGAL AND STIFFER DRUNKDRIVING LAWS HAVE LED MANY TO CONSUME LESS THE PUBLIC IS DEMANDING SOMETHING BEYOND WHAT'S IN THE GLASS SAYS RICK BERMAN EXECUTIVE DIRECTOR OF THE AMERICAN BEVERAGE INSTITUTE A TRADE ASSOCIATION OF NIGHTCLUBS AND BARS PEOPLE'S THIRST FOR THE WILD AND CRAZY HAS SPAWNED A WHOLE NICHE INDUSTRY OF CONSULTANTS WHO DESIGN EQUIPMENT SUCH AS SUMO SUITS AND CONCOCT BIZARRE PROMOTIONS THEIR CONSULTING EFFORTS INVOLVE STEPBYSTEP MARKETING INSTRUCTIONS DETAILED GUIDELINES ON HOW TO RUN THE PROMOTION AND ONSITE TROUBLESHOOTING HOUSTONBASED PATRICK HENRY CREATIVE PROMOTIONS FEEDS IDEAS TO INTERSTATE HOTEL CORP A MAJOR FRANCHISER OF MARRIOTT HOTELS AND TO TINY NEIGHBORHOOD PUBS THE COMPANY'S BIGGER CLIENTS USUALLY PAY A RETAINER BUT MOST BARS SUBSCRIBE TO THE CREATIVE PROMOTIONS NEWSLETTER WHICH OFFERS PROMOTION IDEAS OR THEY PAY ON A PROJECT BASIS OUR IDEAS RANGE FROM THE BIG AND STUPID TO THE SMALL AND STUPID SAYS BILL MCHUGH VICE PRESIDENT OF PROMOTIONS AT DALLASBASED HARBORAGE I LTD A RESTAURANT AND NIGHTCLUB MANAGEMENT CONCERN MR MCHUGH TESTS HIS IDEAS AT THE SEVEN AMERICA'S ORIGINAL SPORTS BARS THAT HIS FIRM MANAGES EACH OF WHICH IS CRAMMED WITH MONITORS BLARING SPORTS EVENTS ACTUAL BATTING CAGES AND A BOXING RING RIGHT NOW BIG AND STUPID IS IN PROMOTIONS FEATURING WEIRD EQUIPMENT ARE BIG HITS PEOPLE WANT TO BE SILLY ESPECIALLY IN A BAD ECONOMY MR RESSLER SAYS TWO YEARS AGO BOING CREATIVE SOLUTIONS LTD A MAKER OF INFLATABLE TOYS FOR HANDICAPPED CHILDREN BRANCHED INTO PROMOTIONS SUCH AS THE ELASTARUN WHICH INVOLVES SPRINTING DOWN A CHUTE WITH A BUNGEE CORD TIED TO AN ANKLE AND TRYING TO ATTACH A BATON TO A VELCRO STRIP BEFORE THE CORD SNAPS YOU BACK TO THE START SINCE 1991 THE UK COMPANY'S SALES HAVE RISEN 10 TO 15 EVERY FEW WEEKS SAYS ITS US GENERAL DIRECTOR DAN MILSTEIN WITH DEMAND MOSTLY FROM BARS AND CLUBS THE VELCRO WALL MADE FAMOUS BY DAVID LETTERMAN SPARKED THE BAR STUNT TREND IN THE MID1980S PATRONS TYPICALLY DON VELCRO VESTS RUN BOUNCE OFF A MINITRAMPOLINE AND LAND AGAINST A FREESTANDING VELCRO WALL THE AIM IS TO GET THE GREATEST DISTANCE BETWEEN FEET AND FLOOR WHICH ENCOURAGES PEOPLE TO LAND ON THE WALL UPSIDE DOWN SINCE INTRODUCING ITS VELCRO WALL 10 YEARS AGO MT ENTERTAINMENT SPECIALTIES INC OF MOUNTAINTOP PA HAS SOLD ABOUT 1000 UNITS AT 2800 APIECE PEOPLE DO IT FOR THE FEAR AND EXHILARATION SAYS FOUNDER THOMAS BELL WHO CLAIMS A 97YEAROLD WOMAN AND A THREEMONTHOLD BABY HAVE CLUNG TO HIS WALLS ONLY THE WOMAN WAS UPSIDE DOWN ON A MUGGY TUESDAY NIGHT A CROWD OF TANNED ACTORS AND MODELS AT ROCK RIDGE SALOON IN GREENWICH VILLAGE TRY OUT MR BELL'S LATEST INVENTION HUMAN BOWLING INSPIRED BY A HAMSTER RUNNING IN A BALL MR BELL THOUGHT HUMANS MIGHT FIND IT FUN TO CLIMB INTO A STEEL SPHERE AND BE HURTLED TOWARD FIVEFOOTTALL CUSHIONED PINS HE MAY HAVE SCORED A STRIKE AT ROCK RIDGE HELMETED CUSTOMERS INSIDE THE BALL ARE SENT SCREAMING TO PINS 20 FEET AWAY OK MY EYES WERE CLOSED SAYS BOSTON STURGIS BUT WHEN I OPENED THEM IT WAS LIKE A MONET PAINTING GOING BY AT 100 MILES AN HOUR SURPRISINGLY THERE HAVE BEEN NO REPORTED CASES OF BALL SICKNESS WE FIGURED OUT THAT IF YOU ROLL HEAD OVER HEELS AND NOT ON YOUR SIDE YOU'D BE OK MR BELL SAYS ABOUT THE OFTSPECULATED GAG FACTOR MT ENTERTAINMENT'S SALES HAVE RISEN MORE THAN 25 SINCE LAST YEAR ON THE SALE OF 516 BOWLING BALLS AT 2600 EACH BARS BOUGHT ABOUT 40 AND THE REST WERE SNAPPED UP BY CORPORATIONS FOR COMPANY PICNICS AND BY NIGHTCLUBS DESPITE THE APPEAL OF SPLASHY STUNTS CONSULTANTS CLAIM THE BEST AND CHEAPEST IDEAS CAN BE FOUND IN CHILDHOOD WHAT YOU DID AS A CHILD BUT WOULD BE EMBARRASSED TO DO AS AN ADULT THAT'S GOING TO SERVE AS INSPIRATION MR BELL SAYS AT JITTERBUG'S IN EDWARDSVILLE PA OWNER LYN CAREY HANDS OUT NERF BALLS ON KARAOKE NIGHT SO THE AUDIENCE CAN PELT OFFKEY PERFORMERS HARBORAGE'S ORIGINAL SPORTS BAR IN CHARLESTON SC HOLDS A TRACTOR PULL WITH PATRONS ON TOTSIZED TRACTORS ROCK RIDGE AND CADDYSHACK ORGANIZE RACES WITH TURTLES AND SELL SILLY STRING A SPRAY THAT COMES OUT AS STICKY YARN SILLY STRING IS THE BEST RAP A GUY COULD HAVE MR POWERS SAYS EXPLAINING WHY IT OFTEN SELLS OUT YOU JUST SPRAY IT ON A GIRL AND START A CONVERSATION SOMETIMES THE MOST SAVVY BARS MISJUDGE THE TASTES OF CUSTOMERS COCKROACH RACES ON TABLES FOR EXAMPLE ARE A BOMB SO IS BUNGEEJUMPING INDOORS FROM A BALCONY CONVINCED THE LAMBADA WAS THE BIGGEST DANCE CRAZE SINCE DISCO CREATIVE PROMOTIONS MARKETED A NATIONWIDE LAMBADA DANCE CONTEST NO ONE SHOWED UP PRESIDENT PATRICK HENRY STILL HAS 1800 LAMBADA CASSETTES HE CAN'T GET RID OF EVEN THE BEST PROMOTIONS CAN FAIL IF EXECUTED SLOPPILY CONSULTANTS SAY LIGHTING MUSIC AND THE RUNUP TO THE EVENING'S BIG EVENT ARE ALL CRITICAL THERE'S NO WAY SOMEONE IS GOING TO PUSH A GRAPE WITH HIS NOSE IN FRONT OF A COLD CROWD SAYS MR MCHUGH YOU GET THEM USED TO COMING UP ON STAGE FOR THE SMALL THINGS LIKE TRIVIA QUESTIONS SO THEY'LL FEEL AT EASE ABOUT THE BIG THINGS BARS SHOULD FEEL FREE TO PUSH THE LIMITS OF TASTE TOO KICKS A BAR IN THE MARRIOTT ST LOUIS WEST HOTEL HELD A HALLOWEEN HEARSE GIVEAWAY DEVELOPED BY CREATIVE PROMOTIONS ABOUT 1000 PEOPLE TURNED OUT AND THE ONE WITH THE BEST COSTUME WON THE USED 1974 CADILLAC HEARSE WHY WOULD ANYONE WANT AN OLD HEARSE PEOPLE RESELL THEM BUT THEY'VE ALSO TURNED THEM INTO WORK VANS SAYS ST LOUIS WEST'S DIRECTOR OF FOOD AND BEVERAGES BILL FONTES HEY THEY'RE IN GOOD SHAPE THEY HAVE VERY LITTLE MILEAGE ON THEM 9309070087 930907 BUSINESS BRIEF BETHLEHEM STEEL FINED FOR WASTE VIOLATIONS AT INDIANA FACILITY HAMMOND IND BETHLEHEM STEEL CORP HAS BEEN FINED 6 MILLION BY A FEDERAL JUDGE FOR FAILING TO COMPLY WITH HAZARDOUS WASTE DISPOSAL REQUIREMENTS AT ITS BURNS HARBOR IND STEEL MILL THE FINE STEMMED FROM A 1990 CIVIL SUIT BROUGHT BY THE ENVIRONMENTAL PROTECTION AGENCY AND JUSTICE DEPARTMENT IN HIS RULING US DISTRICT COURT JUDGE RUDY LOZANO SAID BETHLEHEM'S ACTIONS AND INACTIONS REPRESENTED A WILLFUL FAILURE TO COMPLY WITH ENVIRONMENTAL LAWS AS A RESULT HE IMPOSED THE LARGESTEVER COURTORDERED PENALTY REGARDING HAZARDOUS WASTE DISPOSAL THE EPA SAID A COMPANY SPOKESMAN SAID THE BETHLEHEM PA STEELMAKER IS APPEALING THE DETERMINATION OF LIABILITY WHICH WAS MADE EARLIER THIS YEAR AS WELL AS THE FINE THAT WAS ORDERED LAST WEEK IT SAID THE SITE DIDN'T PRESENT ANY ACTUAL RISK OF HARM TO THE ENVIRONMENT AND THERE HAS BEEN NO FINDING IN THE COURT'S DECISION TO THE CONTRARY THE PENALTY INCLUDED 42 MILLION FOR FAILING TO COMPLY WITH CORRECTIVE REQUIREMENTS FOR DISPOSAL WELLS AS MANDATED BY THE SAFE DRINKING WATER ACT BECAUSE THE COMPANY FAILED TO FURNISH ADEQUATE DATA THE EPA COULDN'T DETERMINE WHETHER THE WELLS WERE CONTAMINATING THE AREA SAID ANN KLINE AN ATTORNEY WITH THE EPA'S OFFICE OF ENFORCEMENT NOR DID THE STEELMAKER SUBMIT A SCHEDULE UNDER WHICH IT WAS TO PERFORM REQUIREMENTS OF THE ACT THE FINE ALSO INCLUDED 18 MILLION FOR FAILING TO HAVE ADEQUATE CONTROLS FOR RUNOFF AND FAILURE TO SHOW FINANCIAL GUARANTEES THAT MONEY HAD BEEN SET ASIDE FOR ADEQUATE FUTURE CLOSURE OF ITS LANDFILL 9309070086 930907 ANOTHER TRY LATEST PLAN TO MAKE GOVERNMENT WORK JUST MIGHT WORK CLINTON PROPOSAL DUE TODAY GAINS CLOUT BECAUSE HE IS A DEMOCRATIC PRESIDENT BUT MANY PAST EFFORTS FAILED BY JEFFREY H BIRNBAUM AND TIMOTHY NOAH STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TODAY FOR THE 11TH TIME THIS CENTURY A PRESIDENT WILL PROPOSE HOW FINALLY TO MAKE GOVERNMENT WORK BETTER THIS TIME THOUGH IT MIGHT JUST MIGHT HAPPEN FOR ONE THING THE PRESIDENT WHO WILL PROPOSE TO REINVENT GOVERNMENT IS A DEMOCRAT MUCH AS IT WAS EASIER FOR REPUBLICAN PRESIDENT NIXON TO OVERCOME CONSERVATIVE OPPOSITION AND GO TO CHINA AN ATTEMPT TO STREAMLINE GOVERNMENT IS MORE POWERFUL COMING FROM A DEMOCRAT WHOSE PARTY GENERALLY LIKES GOVERNMENT PRESIDENT CLINTON WILL BE ESPECIALLY EAGER TO PUSH HIS PLAN TO REMAKE GOVERNMENT AS A WAY OF OFFSETTING THE IMAGE THAT HE IS JUST AN OLDFASHIONED TAXANDSPEND DEMOCRAT AN IMAGE SOME REPUBLICANS TRIED TO PIN ON HIM DURING THE SUMMER BUDGET DEBATE WHAT'S MORE THE FACT THAT THE PROPOSAL WAS PRODUCED AND IS BEING PROMOTED HEAVILY BY VICE PRESIDENT GORE WHO IS ONE OF PRESIDENT CLINTON'S CLOSEST AND MOST TRUSTED ADVISERS BOLSTERS THE EFFORT ABOVE ALL PUBLIC OPINION IS RUNNING AS HARSHLY AGAINST WASHINGTON AS IT EVER HAS SOMETHING THAT HAS KEPT THE BILLIONAIRE GADFLY ROSS PEROT HIGH IN THE PUBLIC CONSCIOUSNESS AND HIS ANTIGOVERNMENT SCREEDS IN DEMAND SO ONCE A PROPOSAL TO CUT SOME FAT OUT OF GOVERNMENT COMES FROM THE PRESIDENT HIMSELF IT WILL PROBABLY BE HARD FOR ANY POLITICIAN TO OPPOSE I HAVE NEVER SEEN THE ELECTORATE ANY MADDER AT THEIR GOVERNMENT SAYS DEMOCRATIC REP CHARLES STENHOLM OF TEXAS WHO HAS LONG ADVOCATED A GOVERNMENTAL OVERHAUL PEOPLE EXPECT CHANGE IT'S GOING TO BE VERY DIFFICULT FOR THE CONGRESS TO WEAVE AND DUCK THIS TIME OF COURSE MR CLINTON FACES GREAT SKEPTICISM THAT HE WILL ACCOMPLISH MUCH TO MAKE HIS PLAN WORK HE WILL HAVE TO OVERCOME POWERFUL ENTRENCHED INTERESTS THAT LIKE GOVERNMENT AS IT IS AND HE WILL HAVE TO QUELL DOUBTS THAT HE IS TOUGH ENOUGH TO FIGHT THOSE INTERESTS TO THE END SURELY THOUGH NO PREVIOUS EFFORT HAS HAD SO MUCH HIGHLEVEL INVOLVEMENT SINCE MARCH MR GORE HAS SPENT HUNDREDS OF HOURS PERSONALLY DEVELOPING DETAILS OF THE PLAN HE ONCE SPENT AN ENTIRE SATURDAY AFTERNOON IN A BLIZZARD DEVISING THE DECISIONMAKING PROCESS AND EVEN AFTER CASTING A TIEBREAKING VOTE ON THE BUDGET BILL NEAR 3 AM ONE EXHAUSTING DAY LAST SUMMER HE MANAGED TO GET TO PHILADELPHIA BY 8 AM TO PRESIDE AT A SEMINAR ON THE PLAN BOTH THE VICE PRESIDENT AND THE PRESIDENT WILL PUT THEIR PERSONAL PRESTIGE ON THE LINE THEY WILL TRAVEL TOGETHER FOR THREE DAYS THIS WEEK HIGHLIGHTING DIFFERENT ASPECTS OF THE PLAN IN CLEVELAND HOUSTON AND NORTHERN CALIFORNIA MORE TRIPS AND PUBLIC EVENTS BY BOTH MEN AND TOP ADMINISTRATION OFFICIALS ARE SCHEDULED ALL THIS MONTH EVEN THOUGH MR CLINTON HAS ON HIS PLATE TWO OTHER SEEMINGLY BIGGER PRIORITIES HEALTHCARE OVERHAUL AND THE NORTH AMERICAN FREE TRADE AGREEMENT REINVENTING GOVERNMENT IS SOMETHING WE'RE GOING TO BE DOING BETWEEN NOW AND WHEN WE LEAVE HERE VOWS MARK GEARAN THE WHITE HOUSE COMMUNICATIONS DIRECTOR AND IN AN INTERVIEW YESTERDAY VICE PRESIDENT GORE ADDED THE FULL TRANSFORMATION THAT WE ARE SEEKING MAY TAKE AS LONG AS EIGHT TO 10 YEARS THE PLAN MR CLINTON UNVEILS TODAY WILL BE A REPORT RUNNING MORE THAN 200 PAGES THAT OFFERS SOME 800 SUGGESTIONS ABOUT HOW TO MAKE GOVERNMENT WORK BETTER AND COST LESS ACCORDING TO MR GORE 40 TO 45 OF THOSE SUGGESTIONS THE PRESIDENT CAN ENACT ON HIS OWN THE REST ONLY WITH HELP FROM CONGRESS IF FULLY IMPLEMENTED THE REPORT'S FINDINGS COULD SERVE TO ENERGIZE THE PEOPLE AND AGENCIES THAT MAKE UP WASHINGTON'S PERMANENT GOVERNMENT AMONG OTHER THINGS THE REPORT CALLS FOR MAKING IT EASIER TO FIRE INCOMPETENT EMPLOYEES FOR PRIVATIZING MANY FEDERAL FUNCTIONS AND FOR LOOSENING THE WHITE HOUSE'S GRIP ON THE MORE ROUTINE MATTERS OF THE EXECUTIVE BRANCH ACCORDING TO PORTIONS OF THE REPORT MADE AVAILABLE TO THE WALL STREET JOURNAL AND TO INTERVIEWS WITH WHITE HOUSE STAFFERS THE PLAN ALSO WOULD CHANGE FEDERALPROCUREMENT PROCEDURES FROM RIGID RULES TO GUIDING PRINCIPLES THAT ALLOW GOVERNMENT MANAGERS MORE FREEDOM ELIMINATE 252000 FEDERAL GOVERNMENT JOBS INCLUDING THE 100000 THE ADMINISTRATION ALREADY HAS PLEDGED TO CUT BY ATTRITION EXEMPT CONTRACTORS ON FEDERAL CONSTRUCTION PROJECTS OF UP TO 100000 FROM THE REQUIREMENT TO PAY THE COSTLY PREVAILING WAGES REQUIRED BY THE DAVISBACON ACT TRY TO MAKE THE GOVERNMENT WORK MORE EFFICIENTLY FOR AVERAGE INDIVIDUALS AND BUSINESSPEOPLE BY FOR INSTANCE SPEEDING UP THE MAILS AND TAX REFUNDS AND GENERALLY CUTTING DOWN ON PAPERWORK ELIMINATE CERTAIN GOVERNMENT OFFICES SUCH AS THE PRESIDENT'S INTELLIGENCE OVERSIGHT BOARD AND THE DEFENSE DEPARTMENT'S UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES THE IMMENSITY OF THE STREAMLINING TASK CAN HARDLY BE EXAGGERATED OF THE NATION'S 20 LARGEST ORGANIZATIONS RANKED BY CASH FLOW NINE ARE FEDERAL AGENCIES INCLUDING THE TOP THREE THE DEPARTMENTS OF HEALTH AND HUMAN SERVICES DEFENSE AND TREASURY AND OF COURSE THE US GOVERNMENT IS THE NATION'S BIGGEST SINGLE EMPLOYER WITH ROUGHLY 44 MILLION PEOPLE OR NEARLY 4 OF THE TOTAL WORK FORCE BUT THE GOVERNMENT IS WAY BEHIND IN ITS MANAGEMENT SYSTEMS AND THE GORE TEAM AT LEAST TOOK A STAB AT FIGURING OUT HOW THINGS WORK IN THE CORPORATE WORLD IN THE WEEKS LEADING UP TO TODAY'S LAUNCH FOR INSTANCE MANAGEMENT GURU TOM PETERS SPOKE TO A RALLY OF LABOR DEPARTMENT OFFICIALS AND ENERGY DEPARTMENT MANAGERS TREKKED TO A MOTOROLA INC FACILITY IN SCHAUMBURG ILL TO LEARN A FEW THINGS NEVERTHELESS LEGIONS OF SKEPTICS DON'T EXPECT THE REPORT TO BRING MUCH CHANGE I JUST DON'T HAVE A WHOLE LOT OF CONFIDENCE AT THIS POINT IN WHAT THEY'RE DOING SAYS JOHN DIIULIO JR ONE OF THE AUTHORS OF A BROOKINGS INSTITUTION REPORT CASTING DOUBT ON THE EFFORT'S CHANCES OF SUCCESS IN A CLASSIC DEPLOYMENT OF MEASURED THINKTANK RHETORIC THE STUDY FINDS IT PREFERABLE TO SPEAK OF EVOLUTION RATHER THAN REINVENTION WHEN REFORMING GOVERNMENT AND TOUGH LITMUS TESTS WILL BE APPLIED TO JUDGE HOW MUCH REINVENTION IS REALLY HAPPENING FOR EXAMPLE LONGTIME REFORM CHAMPIONS WILL WATCH TO SEE WHETHER FEDERALEMPLOYEE UNIONS ARE CONFRONTED WITH ANY SERIOUS EFFORTS TO FORCE THE FIRING OF UNDERPERFORMING WORKERS ONE ENCOURAGING SIGN IS THE UNANIMOUS SUPPORT SHOWN SO FAR BY MAJOR PUBLICEMPLOYEE UNIONS ANOTHER TEST WILL BE WHETHER ANY DUCHIES IN CONGRESS ARE CHALLENGED AND WHETHER POWERFUL DEMOCRATIC CHAIRMEN ARE THREATENED WITH THE LOSS OF PET PROGRAMS INDEED ATTEMPTS TO IMBUE THE FEDERAL BUREAUCRACY WITH BOTTOMLINE EFFICIENCY ARE HARDLY NEW THE FOREBEARS TO VICE PRESIDENT GORE'S PANEL INCLUDE TWO COMMISSIONS HEADED BY FORMER PRESIDENT HOOVER IN THE LATE 1940S AND EARLY 1950S A REORGANIZATION UNDER PRESIDENT CARTER IN THE LATE 1970S AND A PRIVATESECTOR PANEL HEADED BY WR GRACE CHAIRMAN PETER GRACE IN THE EARLY 1980S MOST OF THESE EFFORTS EVEN WHEN ENACTED INTO LAW BROUGHT LITTLE CHANGE BUT ADVOCATES OF THE PLAN TO REINVENT GOVERNMENT SAY THAT THERE IS MORE SUPPORT THAN IN RECENT MEMORY TO PRESS FOR BOLD CHANGE AND THAT THAT SUPPORT IS BIPARTISAN I THINK WE CAN WORK TOGETHER SAYS WILLIAM ROTH A DELAWARE REPUBLICAN WHO PROVIDED SOME INPUT TO MR GORE'S PANEL AND IS EXPECTED TO BE A KEY ALLY UNLIKE THE REAGANERA GRACE COMMISSION WHICH MANY DEMOCRATS IN CONGRESS SUSPECTED WAS AIMED MORE AT INDISCRIMINATELY TERMINATING GOVERNMENT PROGRAMS THAN IMPROVING THEM THIS TIME WHAT WE'RE REALLY TRYING TO BRING ABOUT IS BETTER SERVICE TO THE PEOPLE MR ROTH SAYS OTHER REPUBLICANS TAKE A WAITANDSEE ATTITUDE ABOUT WHETHER TO SUPPORT THE PLAN BUT THEY ARE CLEARLY LEANING TOWARD DOING SO I WOULD SAY 80 OF IT SOUNDS VERY GOOD SAYS HOUSE MINORITY WHIP NEWT GINGRICH BUT THEY'VE GOT TO BE WILLING TO LOOK AT SOME REPUBLICAN IDEAS SOME LIBERAL DEMOCRATS PROBABLY WILL BALK AT PARTS OF THE PLAN THAT THEY THINK GO TOO FAR OTHERS FROM ACROSS THE POLITICAL SPECTRUM WHO FAVOR MORE RADICAL SURGERY WILL COMPLAIN THAT IT DOESN'T GO NEARLY FAR ENOUGH DECLINING AS IT DOES TO AX ANY MAJOR AGENCIES OR PROGRAMS AND ITS PROPOSED CREATION OF NEW GOVERNMENT BODIES SUCH AS A NATIONAL PARTNERSHIP COUNCIL ON LABORMANAGEMENT RELATIONS RAISES THE POSSIBILITY THAT RATHER THAN REDUCE GOVERNMENT BUREAUCRACY IT MIGHT ADD TO IT BUT ONE DEMOCRAT UNAFFLICTED BY DOUBTS IS PRESIDENT CLINTON LONG AN AVID READER OF CORPORATEMANAGEMENTREFORM BOOKS HE SEES A CONTINUING EFFORT TO REORGANIZE THE GOVERNMENT AS ESSENTIAL TO HIS ADMINISTRATION'S SUCCESS PRESIDENT CLINTON BELIEVES GOVERNMENT SHOULD BE AN ACTIVE FORCE IN PEOPLE'S LIVES SAYS PAUL BEGALA ONE OF HIS SENIOR ADVISERS BUT VICE PRESIDENT GORE SAID IN THE INTERVIEW GOVERNMENT AS IT IS CURRENTLY ORGANIZED IS A VERY POOR INSTRUMENT TO USE AND ALL TOO OFTEN FAILS TO PERFORM AS IT SHOULD THAT IS WHY THOUGH TODAY'S REPORT WILL CLAIM THAT ITS RECOMMENDATIONS WILL SAVE 1086 BILLION OVER THE NEXT FIVE YEARS SOME CLINTON AIDES THINK THE PRESIDENT HAS GOTTEN TOO CARRIED AWAY PORTRAYING THE EFFORT AS PRINCIPALLY A WAY TO MAKE GOOD ON HIS SUMMERTIME PROMISES TO FIND MORE BUDGET CUTS THESE AIDES THINK IT IS MORE IMPORTANT TO CONVINCE PEOPLE THAT GOVERNMENT CAN BECOME MORE COMPETENT SO TODAY'S REPORT WILL TARGET SOME OF THE EPISODES THAT SOW PUBLIC DOUBTS US MARSHALS IN ATLANTA PAYING 40 TO PROFESSIONAL LANDSCAPING FIRMS TO MOW THE LAWNS OF HOUSES THEY SEIZE FROM DRUG DEALERS BECAUSE TEENAGERS CAN'T MAKE FORMAL BIDS AND THE NATIONAL HIGHWAY TRAFFIC ADMINISTRATION AND THE GOVERNMENT PRINTING OFFICE SPENDING 20000 WRANGLING OVER THE LOOK OF DRIVERSAFETY LITERATURE WITHOUT ACTUALLY PRODUCING ANY RAW POLITICS IS PART OF THIS CALCULATION FOR MR CLINTON AND FOR HIS PARTY IF CLINTON IS GOING TO EXPAND HIS POLITICAL BASE HE WILL HAVE TO DO SO WITH THE PEROT VOTER SAYS AL FROM A LEADER OF MODERATE DEMOCRATS REINVENTING GOVERNMENT IS AN IMPORTANT PART OF THAT THE INITIATIVE ALSO IS A MAJOR POLITICAL OPPORTUNITY FOR MR GORE WHO DESPITE MUCH ADVANCE PUBLICITY HASN'T BEEN A HIGHLY VISIBLE PLAYER IN THE CLINTON WHITE HOUSE THAT WILL CHANGE TODAY IT MAY BE THE BIGGEST JOB EVER GIVEN TO A VICE PRESIDENT SAYS DEMOCRATIC REP JIM COOPER OF TENNESSEE THE GORE REPORT OFFERS A VAST ARRAY OF PROPOSED CHANGES IN GOVERNMENT OPERATIONS SOME OF THEM SUCH AS ADOPTING A TWOYEAR BUDGET CYCLE CUT ACROSS ALL FEDERAL AGENCIES OTHERS SUCH AS ENDING THE GOVERNMENT PRINTING OFFICE'S MONOPOLY BY ALLOWING PRIVATE COMPANIES TO COMPETE WITH IT FOR GOVERNMENT PRINTING CONTRACTS WOULD MAINLY AFFECT JUST ONE SOME OF THE RECOMMENDATIONS ARE POLITICALLY TOUCHY BECAUSE THEY WOULD TAKE BENEFITS AWAY FROM PEOPLE OUTSIDE GOVERNMENT THE AGRICULTURE DEPARTMENT FOR INSTANCE WOULD REDUCE THE NUMBER OF DEPARTMENT OUTLETS THERE ARE AN AVERAGE OF FOUR IN EVERY COUNTY IN THE US SIMILARLY THE REPORT RECOMMENDS ELIMINATING SUBSIDIES TO HONEY WOOL AND MOHAIR PRODUCERS PAYMENTS THAT HAVE WITHSTOOD YEARS OF RIDICULE BY PREVIOUS ADMINISTRATIONS IN OTHER CASES THE LOUDEST CRITICISM WILL COME FROM INSIDE THE EXECUTIVE BRANCH ITSELF TRANSPORTATION DEPARTMENT OFFICIALS STILL EXPRESS SKEPTICISM ABOUT A MOVE TO PRIVATIZE THE AIRTRAFFICCONTROL SYSTEM AND WHITE HOUSE OFFICIALS FEARING A BACKLASH FROM AGRICULTURE INTERESTS REMOVED FROM AN EARLIER DRAFT A PROPOSAL THAT WOULD HAVE LIMITED PRICESUPPORT PAYMENTS TO 50000 A YEAR PER FARM FAMILY TO MANY THE REPORT REPRESENTS AN IMPORTANT DEPARTURE FROM PAST ATTEMPTS IT DOES CLEARLY STATE THAT THE FAILURE HAS BEEN THE FAILURE TO MEASURE PERFORMANCE SAYS CHARLES PETERS EDITOR OF THE WASHINGTON MONTHLY AND A LONGTIME CRITIC OF GOVERNMENT BUREAUCRACY AS DISTINGUISHED FROM LOOKING AT WHETHER THERE'S FRAUD WASTE AND ABUSE BUT MR PETERS FAULTS WHAT HE TERMS THE REPORT'S GUTLESSNESS ON THE ISSUE OF FEDERAL EMPLOYEE JOB PROTECTIONS THE REPORT DOES ADVOCATE GIVING EMPLOYERS MORE AUTHORITY TO HIRE AND FIRE SHORTENS REQUIRED NOTICE OF TERMINATION TO 15 DAYS FROM 30 AND DECENTRALIZES MANAGEMENT AUTHORITY BUT THESE AMOUNT TO CHANGES AROUND THE EDGES ACCORDING TO SEN JOHN GLENN AN OHIO DEMOCRAT WHO HEADS THE GOVERNMENT AFFAIRS COMMITTEE MR GORE DISAGREES SAYING THE CHANGES WILL BE VERY EXTENSIVE EVEN THE ADMINISTRATION'S MANAGEMENT CHIEF ACKNOWLEDGES GROUNDS FOR SKEPTICISM ABOUT INSTANT TURNAROUNDS IN GOVERNMENT PERFORMANCE PHIL LADER A DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET KEEPS A PAINTING ON HIS OFFICE WALL THAT HE SAYS DESCRIBES HIS JOB IT DEPICTS A MAN HANGING BY HIS FINGERTIPS AS HE STRUGGLES TO SCALE A SHEER CLIFF NOBODY IS MORE CYNICAL ABOUT OVERNIGHT CHANGES THAN I AM MR LADER SAYS BUT HE ADDS IT'S DIFFERENT THIS TIME AROUND 9309070085 930907 INTERNATIONAL FRENCH NEWCAR REGISTRATIONS PARIS FRENCH NEW PASSENGERCAR REGISTRATIONS FOR AUGUST DROPPED 18 TO 124700 CARS FROM THE YEAREARLIER PERIOD THE FRENCH AUTO MAKERS' COMMITTEE SAID SINCE THE BEGINNING OF THE YEAR REGISTRATIONS HAVE DECLINED 17 TO 11 MILLION CARS THE TRADE ASSOCIATION ALSO SAID FRENCH AUTO COMPANIES' MARKET SHARE WAS 58 IN AUGUST AND IS 61 YEAR TO DATE REGISTRATIONS OF PSA PEUGEOT CITROEN SA MODELS WERE 26 LOWER FOR AUGUST THAN THE YEAREARLIER PERIOD AND RENAULT SA REGISTRATIONS WERE DOWN 13 PSA'S MARKET SHARE IN AUGUST WAS 25 AND RENAULT'S WAS 33 9309070084 930907 CORPORATE FOCUS MURDOCH HOLDS TALKS TO SELL SOUTH CHINA MORNING POST ANALYSTS VIEW DEAL FOR PROFITABLE PAPER AS PART OF STRATEGIC MOVE INTO TV BY WALL STREET JOURNAL REPORTERS SALLY D GOLL IN HONG KONG AND S KARENE WITCHER IN SYDNEY AUSTRALIA RUPERT MURDOCH HAS SEEN THE FUTURE AND IT IS TELEVISION THE GLOBAL MEDIA MAGNATE SAID LAST FRIDAY THAT HE IS NEGOTIATING A SALE OF HIS 50 CONTROLLING INTEREST IN THE SOUTH CHINA MORNING POST HONG KONG'S PRINCIPAL ENGLISHLANGUAGE NEWSPAPER AND A HIGHLY PROFITABLE UNIT OF NEWS CORP HIS SYDNEY AUSTRALIA HOLDING COMPANY THOUGH NO OTHER DETAILS HAVE BEEN DISCLOSED THE POTENTIAL BUYER IS WIDELY RUMORED TO BE ROBERT KUOK HOCK NIEN A WEALTHY MALAYSIAN BUSINESSMAN WHOSE EXTENSIVE INVESTMENTS IN ASIA INCLUDE THE SHANGRILA HOTEL CHAIN A SALE OF THE SCMP AS THE NEWSPAPER IS KNOWN WOULD REPRESENT MR MURDOCH'S SECOND MAJOR STEP IN RECENT MONTHS TO RESHAPE HIS MEDIA EMPIRE IN LATE JULY NEWS CORP ACQUIRED 636 OF STAR TV THE PLUM OF ASIA'S FASTGROWING SATELLITETELEVISION INDUSTRY PAYING US525 MILLION IN CASH AND STOCK THAT SUM NEARLY EQUALS THE MARKET VALUE OF HIS SCMP STAKE WHICH STANDS AT ABOUT FOUR BILLION HONG KONG DOLLARS US516 MILLION MR MURDOCH PUBLISHES NEWSPAPERS IN THE US BRITAIN ASIA AND AUSTRALIA BY SELLING THE SCMP WHICH ALSO OWNS A CHINESELANGUAGE NEWSPAPER IN HONG KONG AND HOLDS A MINORITY STAKE IN THE BANGKOK POST HE WOULD BE DIVESTING HIMSELF OF HIS ASIAN NEWSPAPER INTERESTS IN ONE STROKE SOME NEWSPAPER ANALYSTS SAY SUCH A MOVE COULD PRESAGE THE START OF NEWS CORP'S EXIT FROM NEWSPAPERS WORLDWIDE BY THE END OF THE DECADE IN FAVOR OF GLOBAL ELECTRONIC MEDIA OPERATIONS AT THE SAME TIME THE STAR ACQUISITION HAS PROVIDED A MISSING LINK TO MR MURDOCH'S GLOBAL TELEVISION EMPIRE THROUGH ITS FOX UNITS NEWS CORP ALREADY OPERATES TV STATIONS AND A NETWORK IN THE US IN BRITAIN IT OWNS HALF OF BRITISH SKY BROADCASTING LTD A SATELLITE TELEVISION BROADCASTER THESE BROADCASTING OPERATIONS FORM A CRUCIAL PART OF MR MURDOCH'S VISION OF THE FUTURE IN WHICH SPACEAGE TECHNOLOGY WILL HELP NEWS CORP DOMINATE THE ELECTRONIC AGE BUT MR MURDOCH HIMSELF IN A SPEECH LAST WEEK CONCEDED THAT WILL BE AN EXPENSIVE JOURNEY HIS APPARENT WILLINGNESS TO FINANCE THAT JOURNEY BY SELLING THE SCMP IS GREETED WITH AMBIVALENCE BY NEWS CORP WATCHERS WHILE THEY GENERALLY APPLAUD THE COMPANY'S STRATEGIC PUSH INTO GLOBAL TELEVISION AND ELECTRONIC INFORMATION SOME WORRY THAT MR MURDOCH MAY BE MOVING TOO FAST AND OVERESTIMATING CONSUMER WILLINGNESS TO ACCEPT ALL THE WHIZBANG TECHNOLOGY FURTHER THEY FEAR THAT IN THE PUSH NEWS CORP RISKS SACRIFICING THE CASHCOWS OF ITS PUBLISHING EMPIRE SUCH AS THE SCMP SELLING PROFITABLE NEWSPAPER INTERESTS IN ASIA TELLS YOU MR MURDOCH IS SINGLEMINDEDLY DRIVING NEWS CORP INTO THE BROADCASTING AGE THE DIGITAL AGE SAYS ONE LONGTIME NEWS CORP WATCHER WHO DECLINED TO BE NAMED THE DANGER HE ADDS IS THAT MR MURDOCH MIGHT BE RUNNING AHEAD OF CONSUMER ACCEPTANCE AND HE MIGHT SACRIFICE TOO MANY GOOD BUSINESSES IN ACHIEVING THAT BEFORE HE CAN SEE RETURNS FROM THOSE OTHER INVESTMENTS FOR MR MURDOCH AS WELL AS FOR HONG KONG WHICH IS TO BE TAKEN OVER BY CHINA IN 1997 A CHANGE IN OWNERSHIP OF THE SCMP COULD HAVE IMPORTANT POLITICAL IMPLICATIONS THE NEWSPAPER IS WIDELY REGARDED AS PROBRITISH AND ITS CHINA REPORTING HAS OFTEN IRKED CHINESE GOVERNMENT OFFICIALS SOME PEOPLE BELIEVE THAT OWNING SUCH A NEWSPAPER COULD STAND IN THE WAY OF MR MURDOCH'S AMBITIONS TO IMPROVE TIES WITH CHINA AND EXPAND HIS COMMERCIAL INTERESTS THERE BY THE SAME TOKEN THERE IS ALSO CONCERN THAT UNDER MR KUOK WHO HAS A GOOD RELATIONSHIP WITH CHINA'S TOP LEADERS THE SCMP COULD ADOPT A SOFTER APPROACH TO ITS CHINA COVERAGE IF INDEED MR KUOK TURNS OUT TO BE THE INTERESTED BUYER HE MIGHT FACE A POTENTIAL STUMBLING BLOCK IN THE FORM OF THE HONG KONG GOVERNMENT MR KUOK HOLDS 32 OF TELEVISION BROADCASTS LTD THE COLONY'S BIGGEST TELEVISION STATION IF HE WERE TO BUY THE SCMP HE WOULD HAVE CONSIDERABLE INFLUENCE OVER TWO PREMIER HONG KONG MEDIA OUTLETS THOUGH THE GOVERNMENT DOESN'T EXPLICITLY PROHIBIT CROSSMEDIA OWNERSHIP ITS EXPRESSIONS OF CONCERN TWO MONTHS AGO ABOUT SUCH A SITUATION WERE A FACTOR IN MR MURDOCH'S WITHDRAWAL OF AN OFFER TO BUY A 222 STAKE IN TVB THERE ARE RUMORS THAT MR KUOK MIGHT SELL OUT OF TVB AND THUS AVOID A CROSSMEDIA OWNERSHIP SITUATION BY SWAPPING HIS TVB STAKE FOR THE SCMP STAKE EVEN THEN FOR SUCH A SWAP TO TAKE PLACE MR MURDOCH WOULD STILL HAVE TO NEGOTIATE HIS WAY AROUND HONG KONG REGULATIONS THAT TIGHTLY RESTRICT OWNERSHIP OF BROADCASTING OPERATIONS BY FOREIGNERS OR BY SOMEONE WHO CONTROLS OTHER BROADCASTING OPERATIONS ATTEMPTS TO REACH MR KUOK AND NEWS CORP OFFICIALS FOR COMMENT WEREN'T SUCCESSFUL RACHEL CARTLAND DEPUTY SECRETARY OF THE COLONY'S RECREATION AND CULTURE BRANCH SAID SUNDAY THAT THE GOVERNMENT HADN'T BEEN APPROACHED BY NEWS CORP TO DISCUSS A POTENTIAL PURCHASE OF MR KUOK'S TVB STAKE THE POTENTIAL SALE OF THE NEWSPAPER WAS DISCLOSED FRIDAY IN A BRIEF STATEMENT BY SOUTH CHINA MORNING POST HOLDINGS LTD THE NEWSPAPER'S HOLDING COMPANY THE STATEMENT SAID THAT DISCUSSIONS ARE UNDER WAY BETWEEN NEWS CORP AND AN INDEPENDENT PARTY TO ACQUIRE ITS CONTROLLING STAKE IN THE SCMP THE STATEMENT GAVE NO INDICATION AS TO WHEN THE NEGOTIATIONS MIGHT BE COMPLETED TRADING IN SCMP STOCK WHICH WAS SUSPENDED ON FRIDAY IS TO RESUME TODAY THE SCMP WHOSE AVERAGE DAILY CIRCULATION EXCEEDS 100000 IS READ WIDELY BY HONG KONG'S TOP BUSINESS EXECUTIVES FOR THE YEAR THAT ENDED JUNE 30 IT POSTED PROFIT AFTER TAX AND EXTRAORDINARY ITEMS OF HK586 MILLION US756 MILLION A 10 INCREASE OVER THE PREVIOUS 12 MONTHS REVENUE ROSE 85 TO HK1 BILLION FOR NEWS CORP A SALE OF THE SCMP WILL CLEARLY RAISE CAPITAL FOR FURTHER INVESTMENTS IN STAR SAYS VIKTOR SHVETS A MEDIA ANALYST AT BROKERAGE FIRM MCINTOSH & CO IN SYDNEY AND IF THE TRANSACTION ENDS UP GIVING MR MURDOCH AN INTEREST IN TVB WHICH OWNS A VAST ARRAY OF CHINESELANGUAGE PROGRAMS SO MUCH THE BETTER FOR NEWS CORP MR SHVETS SAYS IN AN INTERVIEW WITH THE ASIAN WALL STREET JOURNAL THREE YEARS AGO MR MURDOCH PREDICTED THAT HIS EMPIRE WOULD BE INCREASINGLY DOMINATED BY FILM AND ELECTRONIC MEDIA RATHER THAN BY THE NEWSPAPERS AND MAGAZINES WITH WHICH HE BUILT NEWS CORP IN 1990 FILM AND TELEVISION CONTRIBUTED ONLY 85 TO NEWS CORP'S PROFIT WHILE NEWSPAPERS AND MAGAZINES ACCOUNTED FOR ABOUT 70 MR MURDOCH SAID THEN HE EXPECTED THAT WITHIN FIVE YEARS FILM AND TELEVISION OPERATIONS WOULD ACCOUNT FOR HALF THE COMPANY'S TOTAL PROFIT IN THE YEAR THAT ENDED JUNE 30 1993 EARNINGS FROM FILM AND TELEVISION ACCOUNTED FOR 25 OF NEWS CORP'S PROFIT ABOUT THE SAME AS THE PREVIOUS YEAR THE CONTRIBUTION FROM NEWSPAPERS AND MAGAZINES ACCOUNTED FOR 63 9309070083 930907 INTERNATIONAL JAPAN BOND INSTITUTE DOWNGRADES RATINGS OF FOUR STORES' DEBT SPECIAL TO THE WALL STREET JOURNAL TOKYO CITING SLUGGISH CONSUMER DEMAND THE JAPAN BOND RESEARCH INSTITUTE DOWNGRADED ITS RATINGS ON THE LONGTERM BONDS OF FOUR DEPARTMENT STORES THE CREDITRATING AGENCY CUT ITS RATING ON THE BONDS OF MITSUKOSHI LTD TO SINGLEAMINUS FROM SINGLEA OF TAKASHIMAYA CO TO SINGLEAMINUS FROM SINGLEA OF DAIMARU INC TO TRIPLEB FROM TRIPLEBPLUS AND OF MATSUZAKAYA CO TO SINGLEAMINUS FROM SINGLEA THE COMPANIES' PROFITABILITY HAS WORSENED IN THE PAST THREE YEARS THE INSTITUTE SAID AND IS EXPECTED TO REMAIN WEAK FOR SOME TIME ALSO FRIDAY TWO JAPANESE DEPARTMENT STORES REPORTED SHARP DECLINES IN SALES AND PROFIT FOR THE FISCAL FIRST HALF THE TWO MARUI CO AND TOKYU DEPARTMENT STORE CO ALSO SAID THEY PLAN TO CUT BACK ON HIRING TO COPE WITH THE SLUMPING ECONOMY ALSO THE DEPARTMENT STORE MATSUYA CO ON FRIDAY LOWERED ITS PROJECTIONS OF SALES AND PROFIT FOR ITS CURRENT FISCAL YEAR 9309070082 930907 WHO'S NEWS MICHAEL BAKER CORP MICHAEL BAKER CORP PITTSBURGH JOSEPH N ALCORN III 52 YEARS OLD FORMER EXECUTIVE VICE PRESIDENT OF OPERATIONS WITH THIS ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES COMPANY'S MELLON STUART CONSTRUCTION UNIT WAS NAMED PRESIDENT OF THE UNIT HE SUCCEEDS ROBERT H LUFFY 46 WHO ACCEPTED A POST WITH ANOTHER COMPANY 9309070081 930907 KTEL TO REPORT GAIN OF 14 IN NET INCOME FOR FISCAL 4TH PERIOD NEW YORK KTEL INTERNATIONAL INC EXPECTS TO REPORT THAT NET INCOME ROSE 14 IN ITS FISCAL FOURTH QUARTER BUT THAT SALES FELL 45 BECAUSE OF CURRENCY FLUCTUATIONS KTEL BASED IN PLYMOUTH MINN MARKETS ENTERTAINMENT AND CONSUMER PRODUCTS THE COMPANY EXPECTS TO REPORT NET OF 750000 OR 21 CENTS A SHARE FOR THE QUARTER ENDED JUNE 30 UP FROM 656000 OR 18 CENTS A SHARE A YEAR EARLIER MICKEY ELFENBEIN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THE COMPANY WILL REPORT SALES FELL TO 125 MILLION FROM 131 MILLION FULLYEAR NET ROSE TO 26 MILLION FROM 18 MILLION IN THE PRIOR FISCAL YEAR WHILE SALES INCREASED 15 TO 555 MILLION FROM 482 MILLION HE ADDED RESULTS WILL BE REPORTED ON THURSDAY CURRENCY FLUCTUATIONS IN EUROPE IN PARTICULAR THE WEAKENING OF THE POUND AND THE SPANISH PESETA CUT INTO KTEL'S FOURTHQUARTER SALES SAID MR ELFENBEIN WHO ESTIMATED A LOSS OF 34 MILLION FROM CURRENCY TRANSLATIONS WE WOULD HAVE BEEN FLAT OR A LITTLE BIT HIGHER IF WE HAD REPORTED EVERYTHING IN LOCAL CURRENCIES HE SAID KTEL RECENTLY BEGAN HEDGING FOREIGN CURRENCIES IN RESPONSE TO THE VOLATILITY THE COMPANY DOES ABOUT 60 OF ITS BUSINESS OUTSIDE OF THE US MAINLY IN WESTERN EUROPE MR ELFENBEIN SAID YEAREND GAINS PARTLY REFLECTED A TIGHTENING OF EXPENDITURES PARTICULARLY IN ADVERTISING WE SPENT LESS MONEY ON TELEVISION AND ADVERTISING WITH THE COMPANY SWITCHING FOCUS TO PROMOTING MORELUCRATIVE PRODUCTS HE SAID THE STRATEGY HAS LED TO GREATER PROFITS RATHER THAN JUST GENERATING SALES FOR THE YEAR CONSUMER PRODUCTS THAT DID PARTICULARLY WELL IN EUROPE IN 1993 INCLUDED EXCERCISE ITEMS SUCH AS THE KTEL THIGH TONER AND A FOODDEHYDRATING PRODUCT THAT DRIES FOODS FOR STORAGE THE COMPANY IS CONSIDERING EXPANSION INTO THREE NEW AREAS IN EUROPE IN THE NEXT TWO FISCAL YEARS MR ELFENBEIN SAID ADDING THAT IMPROVED HEDGING PRACTICES AND THE EUROPEAN EXPANSION SHOULD HELP OVERALL SALES AND PROFIT IN THE CURRENT FISCAL YEAR 9309070080 930907 BUSINESS BRIEFS TEMBEC INC SOLD ITS DRYSEC INC UNIT BRANTFORD ONTARIO TO ASSOCIATED HYGIENIC PRODUCTS A SUBSIDIARY OF DSG INTERNATIONAL LTD TERMS WEREN'T DISCLOSED FRANKLIN RESOURCES INC REACHED AN AGREEMENT FOR ITS UNITS TO MANAGE AND ADVISE THE 160 MILLION HUNTINGTON FUNDS OF PASADENA CALIF CMS ENERGY CORP'S NATURAL GAS MARKETING UNIT AND FELLONMCCORD & ASSOCIATES LOUISVILLE KY FORMED ALLIANCE GAS SERVICES INC TO JOINTLY MARKET NATURAL GAS IN THE APPALACHIAN REGION TERMS WEREN'T DISCLOSED AON CORP WILL FORM A BERMUDABASED REINSURANCE COMPANY WITH CNA INSURANCE COS AND CORPORATE PARTNERS AN INVESTMENT AFFILIATE OF LAZARD FRERES & CO 9309070079 930907 ECONOMY VEHICLE SALES ARE POISED TO CONTINUE LEADING RECOVERY DESPITE A SLOW AUGUST BY ROBERT L SIMISON AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT DESPITE A LACKLUSTER AUGUST VEHICLE SALES APPEAR POISED TO CONTINUE LEADING THE ECONOMIC RECOVERY THIS MONTH MEANWHILE GENERAL MOTORS CORP'S GRIP ON NO 1 IN THE US IS STILL SLIPPING ALTHOUGH GM'S CAR SALES ROSE MODERATELY IN AUGUST FROM A YEAR EARLIER THEY AMOUNTED TO JUST 298 OF THE MARKET THE FIRST TIME IN DECADES THAT THE COMPANY'S SHARE DROPPED BELOW 30 THE AUGUST RESULTS TOGETHER WITH INDICATIONS THAT GM'S THIRDQUARTER PRODUCTION WON'T BE UP TO PREVIOUS PLANS UNDERSCORE THE COMPANY'S DRASTICALLY ALTERED COMPETITIVE POSTURE AS RECENTLY AS THE 1970S GM CONTROLLED NEARLY HALF THE US CAR MARKET IN THE FINAL 10 DAYS OF AUGUST US SALES OF CARS AND LIGHT TRUCKS ROSE 178 TO 447544 UNITS FROM A WEAK YEAREARLIER TOTAL THAT WAS EQUIVALENT TO A SEASONALLY ADJUSTED SALES RATE OF 116 MILLION VEHICLES A YEAR ABOUT WHERE THE INDUSTRY WAS MUCH OF THE SUMMER BUT DOWN FROM LATE JUNE'S PACE OF 128 MILLION A YEAR FOR ALL OF AUGUST VEHICLE SALES ROSE 86 TO 1136082 CARS AND TRUCKS EQUIVALENT TO A SEASONALLY ADJUSTED SALES PACE OF 114 MILLION A YEAR TOTALLY UNIMPRESSIVE SAID TOM WEBB CHIEF ECONOMIST OF THE NATIONAL AUTO DEALERS ASSOCIATION WHILE SUCH RESULTS DIDN'T EXCITE ANYBODY INDUSTRY EXPERTS MOSTLY BLAMED SHORTAGES OF CARS AND PREDICTED IMPROVEMENT WHEN 1994 MODELS COME ONSTREAM I THINK CAR SALES WILL CONTINUE TO BE GOOD IN EARLY SEPTEMBER SAID WENDY NEEDHAM A SECURITIES ANALYST AT SMITH BARNEY SHEARSON INC DEMAND HAS HELD UP SOME NEW MODELS ARE COMING AND GOOD PRICING IS AVAILABLE CAR DEALERS REPORT CONTINUED CARBUYING ENTHUSIASM WE'VE HAD TO LICENSE SECRETARIES WASH BOYS AND EMPLOYEES THROUGHOUT THE DEALERSHIP TO HELP SELL ON WEEKENDS BECAUSE WE'VE HAD SO MUCH BUSINESS REPORTED FRED RICART OWNER OF A COLUMBUS OHIO FORD DEALERSHIP HE SAYS HIS STORE SOLD A RECORD 1022 VEHICLES IN AUGUST AND COULD HAVE SOLD 1500 IF MORE VEHICLES HAD BEEN AVAILABLE PEOPLE ARE SPENDING MONEY BIG TIME HE SAID IN LATE AUGUST GM REPORTED AN 82 RISE IN VEHICLE SALES FORD MOTOR CO 234 HONDA MOTOR CO 93 TOYOTA MOTOR CORP 193 AND NISSAN MOTOR CO 408 CHRYSLER CORP DOESN'T REPORT 10DAY RESULTS BUT ITS SALES ROSE AN ESTIMATED 229 FOR ALL OF AUGUST GM'S CAR AND TRUCK SALES INCREASED 09 FORD'S 119 CHRYSLER'S 188 TOYOTA'S 109 HONDA'S 52 AND NISSAN'S 105 SO WHAT HAPPENED TO GM WELL ITS 53 RISE IN CAR SALES SIMPLY WASN'T ENOUGH TO KEEP UP WITH THE GAINS POSTED BY FORD AND CHRYSLER THAT PARTLY REFLECTS GM'S EARLIER DECISION TO SCALE BACK LOWPROFIT BUT HIGHVOLUME SALES TO DAILY RENTAL FLEETS A SPOKESMAN SAID WE DECIDED TO WALK AWAY FROM A QUARTERMILLION UNITS IN SUCH SALES THIS YEAR HE SAID ADDING THAT GM IS PLEASED THAT RETAIL SALES HAVE TAKEN UP MUCH OF THE SLACK IN ADDITION GM'S TRUCK SALES SLID 53 IN AUGUST A SPOKESMAN ATTRIBUTED MUCH OF THAT TO SHORTAGES OF SMALL S10 PICKUPS REFLECTING A CHANGEOVER TO A NEW MODEL THIS YEAR AND OF EXTENDEDCAB FULLSIZED PICKUPS GM JUST ADDED A THIRD WORK TURN TO A CANADIAN PLANT TO MEET RISING DEMAND FOR SUCH UNITS GM SAYS IT STILL HOPES TO ACCOUNT FOR 34 OF US VEHICLE SALES THIS YEAR ABOUT THE SAME AS LAST YEAR THROUGH AUGUST ITS SHARE STOOD AT 338 SEPARATELY GM ACKNOWLEDGED THAT SINCE JULY 1 IT HAS REDUCED ITS NORTH AMERICAN VEHICLEPRODUCTION SCHEDULES FOR THE THIRD QUARTER BY 5 OR 51522 UNITS TO 985214 CARS AND TRUCKS A GM SPOKESWOMAN SAID THAT REFLECTED A SLOWERTHANEXPECTED CHANGEOVER TO NEWMODEL PRODUCTION BECAUSE OF A LARGER NUMBER OF MODEL CHANGES AND A HIGHER NUMBER OF NEW COMPONENTS SHE SAID GM LOWERED THE PRODUCTION TARGETS BECAUSE IT WANTED TO ENSURE QUALITY THE REDUCED PRODUCTION GOAL WHILE STILL UP SUBSTANTIALLY FROM A YEAR AGO WILL HURT GM'S BOTTOM LINE SAID RONALD A GLANTZ AN INDUSTRY ANALYST FOR DEAN WITTER HE SAID HE NOW EXPECTS GM TO POST A LOSS OF 13 CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH HIS EARLIER PREDICTION OF A PROFIT OF 17 CENTS HE SAID HE ALSO CUT HIS ESTIMATE OF FOURTHQUARTER PROFITS TO 78 CENTS FROM 102 A SHARE FOR THE 1992 THIRD QUARTER GM REPORTED A LOSS OF 110 BILLION OR 186 A SHARE AND FOR THE FOURTH QUARTER A LOSS OF 6518 MILLION OR 125 A SHARE NOTE THERE WERE 26 SELLING DAYS IN THE MOST RECENT MONTH AND 26 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9309070078 930907 ECONOMY SHAKY RECOVERY PROMPTS SEARCH FOR STIMULUS CLINTON ADVISERS CONSIDER PROPOSALS THAT AVOID WIDENING THE DEFICIT BY DAVID WESSEL AND LUCINDA HARPER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FACED WITH AN ECONOMIC RECOVERY MORE SHAKY THAN HOPED SEVERAL OF PRESIDENT CLINTON'S TOP ADVISERS ARE LOOKING FOR WAYS TO STIMULATE THE ECONOMY WITHOUT WIDENING THE DEFICIT OFFICIALS FROM THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS AND THE LABOR DEPARTMENT ARE ENGAGED IN WHAT COUNCIL MEMBER ALAN BLINDER CALLED INTERNAL BRAINSTORMING THAT MAY OR MAY NOT LEAD ANYWHERE THE SUGGESTIONS RANGE FROM ACCELERATING FEDERAL SPENDING ON CERTAIN NATIONAL PROGRAMS TO TARGETING DISCRETIONARY PROGRAM FUNDS INTO SPECIFIC REGIONS SUCH AS SOUTHERN CALIFORNIA AND SOUTH FLORIDA CLINTON ADMINISTRATION OFFICIALS HOPE TO ASSEMBLE A LIST OF PROPOSALS IN THE NEXT MONTH OR SO THEN PUT FORTH THE BEST OF THOSE TO THE NATIONAL ECONOMIC COUNCIL WHICH WOULD MAKE RECOMMENDATIONS TO THE PRESIDENT IN HOMESTEAD FLA MR CLINTON WAS ASKED ABOUT A REPORT IN YESTERDAY'S NEW YORK TIMES THAT HIS ADMINISTRATION WAS CONSIDERING STEPS TO BOOST THE ECONOMY THE PRESIDENT REPLIED ANYTHING I CAN DO TO STIMULATE THE ECONOMY I WILL THE LATEST EVIDENCE THAT ALL ISN'T WELL WITH THE ECONOMY CAME FRIDAY WHEN THE LABOR DEPARTMENT SAID THAT EMPLOYERS CUT 39000 JOBS IN AUGUST ALTHOUGH THE ECONOMY IS GROWING FASTER THAN PREVIOUSLY ESTIMATED THE COMMERCE DEPARTMENT'S LATEST REVISED DATA SHOW THAT HIRING ISN'T KEEPING PACE HEALTH CARE HAS BECOME SO COSTLY EMPLOYERS SAY THAT THEY ARE SHYING AWAY FROM ADDING PERMANENT WORKERS BIG COMPANIES STILL TRIMMING DOWN CONTINUE TO LAY OFF THOUSANDS OTHER COMPANIES IMPASSIONED ABOUT STAYING COMPETITIVE ARE INCREASING PRODUCTIVITY BY INVESTING HEAVILY IN EQUIPMENT RATHER THAN NEW WORKERS TO MAKE MATTERS WORSE DEFENSE BUSINESS IS DRYING UP FORCING CONTRACTORS TO LAY OFF WORKERS IN ANOTHER SUGGESTION THAT THINGS MIGHT NOT PICK UP SOON THE COMMERCE DEPARTMENT SAID AN INDEX DESIGNED TO PREDICT FUTURE ECONOMIC ACTIVITY DROPPED 01 IN JULY AFTER RISING 01 IN JUNE AND FALLING 04 IN MAY FACTORIES CONSTRUCTION COMPANIES AND GOVERNMENT AGENCIES ALL SHED WORKERS IN AUGUST THE LABOR DEPARTMENT SAID FRIDAY AND THE SERVICE INDUSTRIES WHICH HAVE BEEN THE PRIMARY SOURCE OF JOB GROWTH DURING THE RECOVERY ADDED ONLY 34000 HOWEVER THE UNEMPLOYMENT RATE WHICH IS BASED ON A SURVEY OF HOUSEHOLDS DECLINED TO 67 FROM 68 IN JULY FINANCIAL MARKETS RESPONDED TO THE DISAPPOINTING REPORT BY PUSHING INTEREST RATES DOWN SHARPLY AS FOR THE POSSIBLE STIMULUS PLAN BOTH MR REICH AND MR BLINDER EMPHASIZED THAT NO PROPOSAL IS CERTAIN ANY ADMINISTRATION CONSIDERS MANY IDEAS THAT IT NEVER EMBRACES AND IT SHOULD BE UNDERSTOOD THAT ALL OF THIS IS IN THE EARLY THINKING STAGES MR BLINDER SAID BECAUSE OF VARIOUS LAWS AND THE NATURE OF GOVERNMENT SPENDING THE PRESIDENT'S ABILITY TO ACCELERATE SPENDING PARTICULARLY FROM ONE FISCAL YEAR TO THE NEXT IS VERY LIMITED AS PRESIDENT BUSH FOUND LAST YEAR WHEN HE TRIED MOVES SIMILAR TO THOSE MR CLINTON'S AIDES ARE PONDERING MR CLINTON TRIED UNSUCCESSFULLY EARLY THIS YEAR TO PERSUADE CONGRESS TO CUT TAXES AND INCREASE SPENDING TEMPORARILY TO STIMULATE THE ECONOMY AND THE ADMINISTRATION HAS NO INTEREST IN REOPENING THAT QUESTION INDEED THE WHITE HOUSE NOW IS EMPHASIZING ITS PLAN TO OFFER CONGRESS A NEW PACKAGE OF SPENDING CUTS NEXT MONTH AND ITS DETERMINATION TO SHRINK THE FEDERAL WORK FORCE THE ADMINISTRATION IS PLANNING TO ASK CONGRESS TO EXTEND A FEDERAL PROGRAM THAT PROVIDES UNEMPLOYMENT BENEFITS TO WORKERS WHOSE STATE BENEFITS HAVE RUN OUT WITHOUT CONGRESSIONAL ACTION THE PROGRAM WILL EXPIRE EARLY NEXT MONTH THE LAST TIME CONGRESS EXTENDED THE PROGRAM IT DIDN'T LEGISLATE OFFSETTING SPENDING CUTS IN OTHER PROGRAMS BUT IT ISN'T CLEAR CONGRESS WILL BE WILLING TO DO THAT AGAIN OR IF THE ADMINISTRATION WILL EVEN ASK IT TO DO SO WHAT MAKES THE SLOW JOB GROWTH PARTICULARLY DISHEARTENING AND ENIGMATIC IS THAT THE ECONOMY HAS BEEN GAINING MOMENTUM RECENT GOVERNMENT REVISIONS HAVE SHOWN THAT THE RECOVERY HAS BEEN STRONGER THAN FIRST BELIEVED A NEW ANALYSIS BY THE COUNCIL OF ECONOMIC ADVISERS COMPLETED AFTER THE COMMERCE DEPARTMENT REVISED ITS GROWTH ESTIMATES BUT BEFORE FRIDAY'S EMPLOYMENT REPORT SHOWS THAT IF THE ECONOMY WERE BEHAVING AS USUAL IT WOULD HAVE CREATED ABOUT 450000 MORE JOBS THAN IT HAS EVEN WITH THE NEW REPORT THE PACE OF JOB CREATION HAS BEEN STRONGER IN THE FIRST HALF OF 1993 THAN IT WAS IN THE SECOND HALF OF 1992 SO FAR THIS YEAR THE ECONOMY HAS PRODUCED AN AVERAGE OF 149000 JOBS PER MONTH IN 1992 IT PRODUCED 80000 JOBS A MONTH MANUFACTURERS ARE THE MOST RESISTANT TO TAKING ON MORE EMPLOYEES WE ARE OPERATING UNDER VERY TIGHT CONTROLS AND UNDER THE ASSUMPTION THAT WE ARE STILL IN A RECESSION SAYS SHEILA WEIDMAN SPOKESWOMAN FOR GEORGIAPACIFIC CORP THE BIG FORESTPRODUCT COMPANY SOME FACTORIES ARE STILL SLASHING THEIR WORK FORCES RICHARD BERNER CHIEF ECONOMIST FOR MELLON BANK IN PITTSBURGH SAYS THAT MANUFACTURING EMPLOYMENT IS DOWN MORE THAN 780000 JOBS SINCE THE TROUGH OF THE RECESSION IN MARCH 1991 AND SINCE THE PEAK IN MANUFACTURING EMPLOYMENT WHICH WAS IN 1989 MANUFACTURERS HAVE SHED MORE THAN 18 MILLION JOBS OR 9 OF THEIR WORK FORCE HOWEVER SOME ANALYSTS CITED SEVERAL MITIGATING FACTORS IN THE REPORT FOR ONE AVERAGE WEEKLY HOURS FOR PRODUCTION WORKERS ROSE 02 DURING AUGUST WHICH SUGGESTS INCREASED PRODUCTION IN ADDITION THE NUMBER OF JOBS CREATED IN JULY WAS REVISED TO 211000 FROM 162000 ALSO WHILE THE LABOR DEPARTMENT'S SURVEY OF 300000 BUSINESS PAYROLLS SHOWED THE ECONOMY LOSING 39000 JOBS THE SURVEY OF 60000 HOUSEHOLDS FOUND A BIG GAIN OF 409000 JOBS WHILE THE HOUSEHOLD SURVEY WAS USED TO CALCULATE THE UNEMPLOYMENT RATE THE BROADER BUSINESS SURVEY IS CONSIDERED MORE RELIABLE ALAN LEVENSON ECONOMIST WITH UBS SECURITIES IN NEW YORK SAYS THE TWO FIGURES USUALLY TRACK MORE CLOSELY AND IT IS REASONABLE TO EXPECT A RECONVERGENCE AT A MONTHLY AVERAGE JOB GAIN OF ROUGHLY 170000 WHICH WOULD BE MORE IN LINE WITH THE FIRST HALF OF THIS YEAR ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS KEVIN G SALWEN CONTRIBUTED TO THIS ARTICLE HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 01 DECLINE IN THE INDEX FOR JULY AND A 01 INCREASE FOR MAY THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR JULY AND THE CHANGE FROM JUNE ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 122 DOWN FROM 123 IN THE PREVIOUS MONTH 9309070077 930907 AUSTRALIAN FIRM GETS LICENSE MELBOURNE MALLESONS STEPHEN JAQUES AN AUSTRALIAN LAW FIRM SAID IT HAS BEEN GRANTED A LICENSE BY THE CHINESE GOVERNMENT TO OPEN AN OFFICE IN BEIJING IT IS THE FIRST LICENSE GRANTED TO AN AUSTRALIAN LAW FIRM TO OPERATE IN CHINA ALTHOUGH 41 LICENSES HAVE BEEN ISSUED TO LAW FIRMS FROM OTHER NATIONS MALLESONS ALSO HAS OFFICES IN HONG KONG AND TAIWAN 9309070076 930907 EQUIFAX SETS CHARGE INVOLVING A DISPUTE OVER LOTTERY CONTRACT ATLANTA EQUIFAX INC SAID IT WILL TAKE A PRETAX CHARGE OF ABOUT 48 MILLION OR 41 CENTS A SHARE IN THE THIRD QUARTER IN CONNECTION WITH ITS HIGH INTEGRITY SYSTEMS INC SUBSIDIARY THE CHARGE REFLECTS THE DECLINE IN VALUE OF ASSETS RELATED TO A CONTRACT HIGH INTEGRITY HAD WITH THE CALIFORNIA STATE LOTTERY THE FIVEYEAR CONTRACT WHICH WAS SIGNED IN JULY 1992 WAS FOR AN AUTOMATED INSTANTTICKET GAMING SYSTEM IN APRIL 1993 THE CALIFORNIA LOTTERY CANCELED THE AGREEMENT AND SUED HIGH INTEGRITY FOR BREACH OF CONTRACT ALLEGING THAT THE FIRM HAD FAILED TO DELIVER A WORKING SYSTEM IN MAY HIGH INTEGRITY COUNTERSUED ASSERTING THAT IT HAD DELIVERED AN OPERABLE SYSTEM AFTER TRYING TO REACH AN OUTOFCOURT SETTLEMENT EQUIFAX SAID FRIDAY THAT IT WOULD NOW TAKE THE CASE TO COURT WE IMAGINED THIS SAID A SPOKESWOMAN FOR THE CALIFORNIA LOTTERY YOU DON'T SUE SOMEBODY AND NOT EXPECT IT TO GO TO COURT LOUIS GIGLIO A BEAR STEARNS & CO ANALYST SAID THE STATE LOTTERY TECHNOLOGY AND TRANSACTION SECTOR IS A STRANGE BUSINESS THAT EQUIFAX PROBABLY SHOULDN'T BE IN HIGH INTEGRITY HE SAYS HAS BEEN A DRAG ON EARNINGS AND THAT IF EQUIFAX MAKES THE CHARGE LARGE ENOUGH IT COULD BE BENEFICIAL IN THE SHORT TERM HE ESTIMATES THE MOVE MAY HELP THE CREDITREPORTING CONCERN ADD FIVE CENTS TO EARNINGS IN 1994 IN THE THIRD QUARTER OF 1992 EQUIFAX HAD NET INCOME OF 223 MILLION OR 27 CENTS A SHARE ON REVENUE OF 2783 MILLION FOR ALL OF 1992 EQUIFAX REPORTED NET INCOME OF 853 MILLION OR 104 A SHARE ON REVENUE OF 113 BILLION 9309070075 930907 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION KRANZCO REALTY TRUST AN OFFERING OF 22 MILLION SHARES LANDMARK GRAPHICS CORP AN OFFERING OF 2 MILLION SHARES PLUS THE SALE OF 31660 SHARES BY STOCKHOLDERS VIA ALEX BROWN & SONS INC AND WESSELS ARNOLD & HENDER SON LOUISIANA LAND AND EXPLORATION CO AN OFFERING OF 44 MILLION SHARES OF COMMON STOCK OF WHICH 3520000 SHARES WILL BE OFFERED IN THE US AND CANADA SPECIALTY EQUIPMENT COS BELVIDERE ILL AN OFFERING OF 170 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA MERRILL LYNCH & CO 9309070074 930907 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT CORNERSTONE IMAGING INC INITIAL 18 MILLION SHARES VIA ROBERTSON STEPHENS & MONTGOMERY SECURITIES NEUREX CORP INITIAL 3 MILLION CLASS A SHARES VIA LEHMAN BROTHERS AND KIDDER PEABODY & CO ROHR INC 125 MILLION OF SENIOR SUBORDINATED 10YEAR NOTES VIA DILLON READ & CO TEMPLETON CHINA WORLD FUND INC INITIAL 4 MILLION SHARES VIA MERRILL LYNCH & CO MARYLAND DEPARTMENT OF TRANSPORTATION 2491 MILLION OF VARIOUS SERIES 1993 BONDS VIA COMPETITIVE BID NEVADA 167 MILLION OF SERIES 1993 REFUNDING BONDS VIA COMPETITIVE BID CONNECTICUT 198 MILLION SPECIAL TAX OBLIGATION REFUNDING BONDS VIA A BEAR STEARNS & CO GROUP ORLANDO UTILITY COMMISSION 140 MILLION WATER AND ELECTRIC REVENUE BONDS VIA A PRUDENTIAL SECURITIES INC GROUP MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 110 MILLION SERIES 1993A BONDS VIA A SMITH BARNEY SHEARSON GROUP 9309070073 930907 INTERNATIONAL DANISH EMPLOYMENT FIGURES COPENHAGEN DANISH SEASONALLY ADJUSTED EMPLOYMENT FIGURES FOR THE SECOND QUARTER FELL TO 1896000 PEOPLE WITH FULLTIME EMPLOYMENT FROM 1913000 FOR THE FIRST QUARTER SAID DANMARKS STATISTIK THE DANISH NATIONAL STATISTICS AGENCY HOWEVER THE STATISTICS AGENCY EMPHASIZED THAT THE 1993 QUARTERLY EMPLOYMENT FIGURES WHICH ARE BASED ON REPORTS FROM THE MAIN STATE SUPPLEMENTARY PENSION FUNDS THAT ALL EMPLOYEES ARE COMPELLED TO CONTRIBUTE TO ARE VERY UNCERTAIN BECAUSE OF CHANGES IN CALCULATION RULES BY THE PENSION FUNDS ACCORDING TO THE STATISTICS AGENCY IN ACTUAL FIGURES THE NUMBER OF FULLTIME EMPLOYED DANES ROSE TO 1900000 FOR THE SECOND QUARTER FROM 1874000 EMPLOYED FOR THE PREVIOUS QUARTER 9309070072 930907 GENEVA STEEL PACT RATIFIED RIVERDALE ILL THE 1500 EMPLOYEES OF GENEVA STEEL RATIFIED AN 18MONTH AGREEMENT CONTAINING WAGE INCREASES AND PRODUCTIVITY INCENTIVES THE NEW CONTRACT ESSENTIALLY MAINTAINS THE PROVISIONS OF THE FOURYEAR AGREEMENT THAT JUST EXPIRED BUT ADDS AN ACROSSTHEBOARD WAGE INCREASE OF 25 CENTS AN HOUR AND AN ADDITIONAL 15 CENTS AN HOUR AT THE END OF THE FIRST YEAR IN ADDITION AS LONG AS THE PLANT ATTAINS AN ANNUAL PRODUCTION RATE OF 15 MILLION TONS EMPLOYEES WILL RECEIVE AN ADDITIONAL 33 CENTS AN HOUR WITH ADDITIONAL COMPENSATION UNDER THE PLAN BASED ON INCREASED PLANTWIDE PRODUCTION LEVELS 9309070071 930907 INTERNATIONAL UKRAINE TO CEDE TO RUSSIA ITS PART OF BLACK SEA FLEET SPECIAL TO THE WALL STREET JOURNAL MASSANDRA UKRAINE UKRAINE AGREED FRIDAY TO TURN OVER THE DISPUTED BLACK SEA FLEET TO RUSSIA IN EXCHANGE FOR RUSSIA'S WRITING OFF A LARGE PART OF UKRAINE'S DEBT TO IT THE AGREEMENT WAS REACHED AT A SUMMIT IN THE CRIMEA BETWEEN RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCUK MR YELTSIN PROPOSED THAT UKRAINE CEDE ITS HALF OF THE BLACK SEA FLEET TO HELP SETTLE ITS MORE THAN 2 BILLION DEBT FOR ENERGY SUPPLIES UKRAINE WOULD GET URANIUM FOR ITS ATOMIC PLANTS IN RETURN FOR RETURNING THE FORMER SOVIET NUCLEAR WARHEADS LEFT ON ITS TERRITORY WHEN THE SOVIET UNION COLLAPSED IN DECEMBER 1991 THE TWO SIDES HAD EARLIER AGREED TO SPLIT THE FLEET BUT UKRAINE WHICH IS FALLING FURTHER IN DEBT TO RUSSIA APPEARED TO FEEL THE ECONOMIC ISSUES OUTWEIGHED ANY MILITARY NEED TO HOLD ON TO ITS PART OF THE FLEET HOWEVER MR KRAVCHUK BITTERLY ATTACKED IN UKRAINE FOR THE AGREEMENT DENIED MONDAY HE HAD GIVEN UKRAINE'S SHARE OF THE BLACK SEA FLEET AND NUCLEAR WARHEADS TO RUSSIA AND SAID HIS COUNTRY'S PARLIAMENT MUST RATIFY THE DEAL NOWHERE WILL YOU FIND SUCH DOCUMENTS SAID MR KRAVCHUK REFERRING TO THE AGREEMENTS WE ONLY REQUESTED A COMMISSION REVIEW RUSSIA'S PROPOSALS HE SAID MR YELTSIN SAID ON NATIONAL TELEVISION OVER THE WEEKEND THAT RUSSIA CONSIDERED THE AGREEMENTS FINAL 9309070070 930907 VW STANDS BY LOPEZ PIECH AS CRISIS SWELLS ESPIONAGE SCANDAL THREATENS TO ENGULF MANAGEMENT SPANISH UNIT IN TROUBLE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG STUCK BY EMBATTLED PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA AND CHAIRMAN FERDINAND PIECH EVEN AS TROUBLING SIGNS EMERGED THAT THE BIG FINANCIAL AND OPERATING PROBLEMS AT EUROPE'S LARGEST CAR MAKER ARE SWELLING FURTHER FOLLOWING AN ALLDAY SUPERVISORY BOARD MEETING FRIDAY WHERE THE GROUP DISCUSSED THE INDUSTRIAL ESPIONAGE SCANDAL SURROUNDING MR LOPEZ AS WELL AS VW'S BUSINESS SITUATION VW ACKNOWLEDGED THAT SEVERAL OPERATIONS PARTICULARLY SPANISH SUBSIDIARY SEAT SA OFFERED REASON FOR CONCERN THAT COULD BURDEN PROFIT CALCULATIONS IN 1993 AND ESPECIALLY IN THE PAST WEEKS SEAT'S FINANCIAL SITUATION HAS WORSENED MARKEDLY VW SAID FOR 1992 SEAT POSTED A LOSS OF 1276 BILLION PESETAS 953 MILLION VW ALSO NOTED PROBLEMS IN ITS NORTH AMERICAN AND ASIANPACIFIC MARKETS MEANWHILE VW HAS BEEN LEADING THE PLUNGE IN THE EUROPEAN MARKET SHOWING A NEARLY 23 DROP IN EUROPEAN CAR SALES FOR THE FIRST HALF THIS ACCUMULATION OF CRISES ON TOP OF A STAGGERING 16 BILLION MARKS 9735 MILLION IN LOSSES RACKED UP IN THE FIRST HALF HIGHLIGHTS THE VERY REASON VW IS CLINGING SO TENACIOUSLY TO MR LOPEZ WHO WAS BROUGHT TO VW TO HELP SAVE THE COMPANY WITH HIS COSTSQUEEZING EXPERTISE THE CONTROVERSY SURROUNDING MR LOPEZ WHOM GENERAL MOTORS CORP HAS ACCUSED OF STEALING DOCUMENTS WHEN HE JUMPED TO VW IN MARCH HAS THREATENED TO ENGULF VW'S MANAGEMENT BUT DESPITE RAMPANT SPECULATION THAT THE SUPERVISORY BOARD ON FRIDAY WOULD MOVE TO OUST MR LOPEZ AND POSSIBLY EVEN MR PIECH BOTH MEN SURVIVED THE MEETING WITH THEIR POSITIONS INTACT IN SOME GERMAN BUSINESS CIRCLES HOWEVER THE NEWS OF THE ECONOMIC PROBLEMS AT VW ELICITED THE OPINION THAT THE MANAGERS ALREADY DISTRACTED BY LEGAL PROBLEMS ARE CLEARLY OVERTAXED BY THE RESTRUCTURING CHALLENGES THEY FACE IN PARTICULAR MR PIECH'S OFTENREPEATED PROMISE OF BREAKING EVEN FOR 1993 WAS REGARDED AS INCREASINGLY DOUBTFUL THE SUPERVISORY BOARD SAID ON FRIDAY THAT IT IS CONFIDENT THE VW HOLDING COMPANY WILL BE IN THE BLACK THIS YEAR BUT DIDN'T COMMENT ON THE ENTIRE GROUP A VW SPOKESMAN WOULDN'T COMMENT DIRECTLY ON A REPORT TO BE PUBLISHED IN THIS WEEK'S EDITION OF DER SPIEGEL A GERMAN NEWS MAGAZINE THAT SEAT WOULD BE EFFECTIVELY BANKRUPT WITHOUT A CAPITAL INJECTION OF ABOUT AT LEAST ONE BILLION MARKS FROM VW HEADQUARTERS MEANWHILE VW'S SUPERVISORY BOARD WHICH CLEARLY HAD BEEN HOPING FOR A PRELIMINARY BILL OF HEALTH AT ITS FRIDAY MEETING FROM KPMG DEUTSCHE TREUHAND GESELLSCHAFT AN AUDITING COMPANY IT HIRED TO PERFORM AN INDEPENDENT INVESTIGATION INTO THE CHARGES OF INDUSTRIAL ESPIONAGE HAD TO MAKE DO WITH KPMG'S STATEMENT THAT IT HADN'T FOUND ANYTHING INCRIMINATING SO FAR BUT THAT IT WOULDN'T BE ABLE TO OFFER A FINAL EVALUATION UNTIL THE END OF OCTOBER VW'S SUPERVISORY BOARD TOOK THAT RETICENT STATEMENT AS OCCASION TO REITERATE THAT UNTIL NOW NO FINDINGS HAVE BEEN PRESENTED TO THE SUPERVISORY BOARD THAT JUSTIFY THE ACCUSATION OF INDUSTRIAL ESPIONAGE PUBLIC PROSECUTORS IN DARMSTADT GERMANY MEANWHILE ARE SORTING THROUGH A TROVE OF SOME 20 TO 30 PERSONAL COMPUTERS AND LAPTOPS AND CARTONS FULL OF DOCUMENTS AND COMPUTER DISKS SEIZED FROM VW COMPANY LOCATIONS AND MANAGERS' PRIVATE HOMES KPMG'S ABILITY TO PROVIDE AN OBJECTIVE AND COMPLETE EVALUATION OF THE SITUATION WITHOUT ACCESS TO THE DOCUMENTS SEIZED BY CRIMINAL PROSECUTORS IS STILL AN OPEN QUESTION 9309070069 930907 TEXACO IS FOUND TO OWE FIRM 4042 MILLION UTAH JURY'S DECISION TIED TO AN OWNERSHIP CLAIM BY TINY MINE CONCERN BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL A UTAH STATE JURY FOUND THAT TWO TEXACO INC UNITS SHOULD PAY A TINY GOLD MINING COMPANY 4042 MILLION IN A DISPUTE OVER OWNERSHIP OF A GOLD MINE THAT THE OIL GIANT BRIEFLY OWNED THE AWARD TO GOLD STANDARD INC OF SALT LAKE CITY IS ONE OF THE LARGEST FOR A CORPORATE CASE IN UTAH AND COMPRISES 1542 MILLION IN COMPENSATORY DAMAGES FOR FRAUD AND 250 MILLION IN PUNITIVE DAMAGES A SPOKESMAN FOR TEXACO OF WHITE PLAINS NY SAID THE COMPANY IS EXTREMELY DISAPPOINTED WITH THE JURY'S VERDICT AND PLANS TO PURSUE AN APPEAL OR ANY OTHER CHALLENGES THAT MAY BE APPROPRIATE THE COMPANY SAID THE VERDICT HASN'T YET BEEN ENTERED BY THE JUDGE LEAVING THE DOOR OPEN FOR A POSSIBLE REVERSAL IF THE JUDGE FINDS THAT THE JURY ERRED SUCH AN ACTION COULD COME AS EARLY AS THIS WEEK A TEXACO SPOKESMAN SAID JAMES S LOWRIE GOLD STANDARD'S ATTORNEY SAID THERE ARE SEVERAL STEPS STILL TO GO BEFORE ANY RULING BECOMES FINAL THE JUDGE STATE JUDGE FRANK NOEL OF TOOELE COUNTY STILL HASN'T RULED ON A TEXACO MOTION FOR A DIRECTED VERDICT AND THERE ARE OTHER POSTTRIAL MOTIONS STILL TO BE DEALT WITH WE COULD BE ANYWHERE BETWEEN TWO TO SIX MONTHS BEFORE A NOTICE OF APPEAL AND 12 TO 24 MONTHS BEFORE THE CASE IS RESOLVED SAID MR LOWRIE A PARTNER IN THE SALT LAKE CITY FIRM OF JONES WALDO HOLBROOK & MCDONOUGH AS FOR A REVERSAL OF THE JURY AWARD IT'S POSSIBLE BUT I THINK THAT IT WOULD BE WRONG THE ACTIONS AT ISSUE IN THE CASE HOWEVER APPEAR TO HAVE LITTLE TO DO WITH TEXACO ITSELF AND STEM FROM WHEN THE MERCUR GOLD MINE AT THE HEART OF THE LAWSUIT WAS OWNED BY GETTY MINING A UNIT OF GETTY OIL THOSE TWO ENTITIES ARE BEING HELD LIABLE BY GOLD STANDARD TEXACO BOUGHT GETTY OIL IN 1984 AND SOLD THE MINING SUBSIDIARY A YEAR LATER TO AMERICAN BARRICK RESOURCES CORP OF TORONTO WHICH STILL OWNS AND OPERATES THE MERCUR MINE AMERICAN BARRICK SETTLED WITH GOLD STANDARD EARLIER THIS YEAR FOR 5 MILLION THE SUIT AROSE OUT OF AN AGREEMENT GOLD STANDARD SIGNED WITH GETTY IN 1973 THE ACCORD GAVE GETTY THE RIGHT TO ACQUIRE 75 OF THE MERCUR PROPERTY GOLD STANDARD CLAIMED BREACHES OF OBLIGATIONS UNDER THE AGREEMENT KEPT IT FROM RECEIVING ITS FULL 25 PARTNERSHIP INTEREST IN THE MINE GOLD STANDARD'S CURRENT INTEREST IN THE MINE IS AN AGREEMENT UNDER WHICH IT WILL RECEIVE 15 OF NET INCOME ONCE CAPITAL COSTS TO DEVELOP THE MINE ARE RECOVERED WITH INTEREST UNTIL THEN GOLD STANDARD RECEIVES 75000 A YEAR FROM AMERICAN BARRICK TEXACO MAY HAVE SOME REASON TO HOPE THAT THE JUDGE OVERSEEING THE GOLD STANDARD CASE DOESN'T UPHOLD THE JURY'S VERDICT TWO YEARS AGO JUDGE NOEL RULED IN A PRETRIAL MOTION THAT THE AGREEMENT BETWEEN GETTY AND GOLD STANDARD WAS NOT AMBIGUOUS AND THAT THE COMPANY WAS PROPERLY CONVERTED FROM A 25 WORKINGINTEREST PARTY TO A HOLDER OF A 15 ROYALTY INTEREST GOLD STANDARD'S ACCEPTANCE OF ROYALTY PAYMENTS FROM THE MERCUR MINE THE JUDGE RULED WAS A SIGN THAT THE COMPANY HAD ACKNOWLEDGED THE TERMS OF THE AGREEMENT THE JURY'S DECISION BECAME KNOWN LATE FRIDAY AFTER TRADING IN STOCK OF TEXACO AND GOLD STANDARD HAD ENDED 9309070068 930907 SECURITY AT SCHOOL METAL DETECTORS FIND A GROWING MARKET BUT NOT MANY GUNS SPOTCHECKING OF STUDENTS WITH HANDHELD WANDS BRINGS ITS OWN PROBLEMS ANYONE CAN SNEAK IN A KNIFE' BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL WHEN A STUDENT OPENED FIRE WITH A SHOTGUN IN A PHILADELPHIA HIGHSCHOOL CAFETERIA LAST NOVEMBER WOUNDING TWO THE CITY COUNCIL CALLED FOR IMMEDIATE HEARINGS AND CARL HOFFMAN SPRANG INTO ACTION MR HOFFMAN SENT OFF LETTERS TO COUNCIL MEMBERS AND SCHOOL OFFICIALS ARRANGED A DEMONSTRATION OF SECURITY PRODUCTS THAT HE SELLS AND FOLLOWED UP WITH PHONE CALLS HIS EFFORTS SOON PAID OFF PHILADELPHIA SCHOOLS BOUGHT 250 HANDHELD METAL DETECTORS TO SCAN STUDENTS FOR GUNS AND KNIVES YOU PUSH THE HOT BUTTONS TO GET THEM MOTIVATED SAYS MR HOFFMAN VICE PRESIDENT OF SHEPPARD DETECTIVE SYSTEMS IN PHILADELPHIA BUT HARDSELL TACTICS WEREN'T NECESSARY I SAW THE POTENTIAL HERE BECAUSE THEY SAW THE NEED THEY DIDN'T HAVE TO IMAGINE IT THESE ARE HEADY DAYS FOR PEOPLE LIKE MR HOFFMAN WHO HAVE FOUND A NEW MARKET FOR THEIR WARES IN AMERICA'S PUBLIC SCHOOLS IT'S ONE OF OUR FASTEST GROWING AREAS AS COMPARED TO AIRPORTS AND PRISONS SAYS JIM DOBREI DIRECTOR OF SALES AT GARRETT METAL DETECTORS IN GARLAND TEXAS THOSE APPLICATION AREAS HAVE PRETTY MUCH PLATEAUED DESPERATE TO RESPOND TO A SHOCKING WAVE OF GUNRELATED VIOLENCE INSIDE THEIR WALLS SCHOOLS ARE FLOCKING TO BUY METAL DETECTORS AT LEAST 45 URBAN DISTRICTS INCLUDING NEW YORK ATLANTA CHICAGO LOS ANGELES AND WASHINGTON ARE NOW SCANNING STUDENTS IN CERTAIN SCHOOLS ALONG WITH A GROWING NUMBER OF SUBURBAN AND EVEN RURAL DISTRICTS OKLAHOMA CITY USES DETECTORS ON SOME ELEMENTARYSCHOOL STUDENTS MOST OF THE SCANNING BEGAN IN THE LAST TWO YEARS AND MORE IS ON THE WAY IF THE RECENTLY PROPOSED SAFE SCHOOLS ACT PASSES CONGRESS FEDERAL FUNDS WILL SOON SWELL THE DETECTOR BOOM METALDETECTOR MAKERS AREN'T SHY ABOUT TARGETING SCHOOLS SEVERAL YEARS AGO CIVIC LEADERS SEEMED QUEASY ABOUT THE TOPIC OF TREATING SCHOOLCHILDREN LIKE POTENTIAL TERRORISTS AND SALES REPRESENTATIVES FEARED BEING TAKEN FOR AMBULANCE CHASERS AS ONE MARKETING MANAGER PUT IT BUT THOSE DAYS ARE GONE SCHOOL AND COMMUNITY OFFICIALS NOW VIEW METAL DETECTORS AS AN ACCEPTABLE RESPONSE TO VIOLENCE IN SCHOOLS GARRETT SENDS OUT A MANUAL IT PRODUCED CALLED SCHOOL SECURITY SCREENING DETECTOR SALESPEOPLE SCAN NEWSPAPERS LOOKING FOR REPORTS OF SCHOOL SHOOTINGS OR KNIFINGS SECURITY BOOTHS HAVE BECOME REGULAR FEATURES AT SCHOOL CONVENTIONS THERE IS HOWEVER ONE PROBLEM METAL DETECTORS WHICH MAY BE FINE IN AIRPORTS AND PRISONS JUST DON'T WORK VERY WELL IN SCHOOLS IT'S BETTER THAN NOTHING BUT NOT MUCH BETTER MAL SCHWARTZ PRESIDENT OF FRISKEM INFINETICS INC IN WILMINGTON DEL SAYS OF HIS COMPANY'S HANDHELD DETECTORS THAT PHILADELPHIA BOUGHT OF HIS CUSTOMERS TOM PERTIERRA AN ORLANDO FLA SALESMAN FOR GARRETT SAYS EVERY TIME THEY HAVE NO IDEA AT ALL HOW TO IMPLEMENT THE EQUIPMENT INTO THE SCHOOL ENVIRONMENT THEY HAVE NO IDEA OF THE PERSONNEL NECESSARY THEY HAVE NO IDEA OF THE LEGAL REQUIREMENTS DENNIS M CUNNINGHAM SALES DIRECTOR FOR CONTROLLED SCREENING OF GREENSBURG PA CALLS THE DEVICES A BANDAID SOLUTION THAT AN INNOVATIVE STUDENT COULD FOIL VERY EASILY INDEED QUITE A BIT OF FOILING APPEARS TO BE GOING ON SINCE THE SPRAWLING LOS ANGELES SCHOOL DISTRICT BEGAN USING 305 HANDHELD METAL DETECTORS IN MARCH NOT A SINGLE GUN HAS BEEN FOUND WITH THEM EVEN THOUGH 10 SHOOTING INCIDENTS RESULTING IN ONE INJURY HAVE BEEN REPORTED ON SCHOOL GROUNDS DURING THAT TIME GUNS ARE FINDING THEIR WAY INTO SCHOOLS IN OTHER DISTRICTS WITH METAL DETECTORS AND CRITICS SAY SOME GUNRELATED VIOLENCE SIMPLY HAS MOVED TO PLACES IMMEDIATELY OUTSIDE SCHOOL GROUNDS RATHER THAN CREATE A BARRIER TO GUNS AROUND A SCHOOL THE MOST POPULAR METAL DETECTORS INEXPENSIVE HANDHELD UNITS TYPICALLY ARE USED ONLY ON A SPOTCHECK BASIS INDEED SCHOOL POLICE AND OTHERS WARN THAT DETECTORS LULL PEOPLE INTO A FALSE SENSE OF SECURITY THE BOTTOM LINE IS WE DO NOT KNOW IF THIS HAS HAD ITS DESIRED EFFECT ON DETERRING CHILDREN FROM BRINGING WEAPONS TO SCHOOL SAYS A SPOKESMAN FOR PHILADELPHIA'S SCHOOL SYSTEM SOME SCHOOL OFFICIALS DISAGREE IT'S LIKE A TRAFFIC SIGNAL YOU WANT TO RUN A RED LIGHT GO AHEAD SAYS RUBEN ZACARIAS DEPUTY SUPERINTENDENT OF THE LOS ANGELES SCHOOL SYSTEM BUT YOU RUN THE RISK OF GETTING CAUGHT AND THEN YOU HAVE TO PAY THE CONSEQUENCES DR ZACARIAS CREDITS DETECTORS WITH ENCOURAGING MORE STUDENTS TO INFORM ON CLASSMATES WHO CARRY WEAPONS RESULTING IN INCREASED EXPULSIONS ELEMENTARYSCHOOL PRINCIPAL AUDREY BAKER SAYS SHE HAD LITTLE CHOICE BUT TO REQUEST A METAL DETECTOR AFTER CONFISCATING GUNS FROM FIFTH GRADERS ON THREE OCCASIONS AT THE GREEN PASTURES CENTER IN OKLAHOMA CITY TEACHERS HAD TRIED TALKING ABOUT HONESTY AND RESPONSIBILITY DURING HOMEROOM BUT WE DIDN'T FEEL THAT WE HAD BEEN THAT SUCCESSFUL SHE SAYS ALTHOUGH THE MENTION OF METAL DETECTORS CONJURES UP IMAGES OF AIRPORTSTYLE WALKTHROUGH MACHINES AND XRAY CONVEYOR BELTS THESE DEVICES ARE BEYOND MOST SCHOOL BUDGETS A TYPICAL WALKTHROUGH UNIT COSTS ABOUT 2500 WHILE THE XRAY UNITS USED TO SEE INSIDE BAGS GO FOR ABOUT 20000 APIECE SO MOST SCHOOLS USE HANDHELD WANDS WHICH RANGE IN PRICE FROM 29 TO 200 BUT ARE NOT AS EFFECTIVE AT THE PATRICIA ROBERTS HARRIS EDUCATIONAL CENTER IN WASHINGTON STUDENTS IN THE SEVENTH EIGHTH AND NINTH GRADES WERE ROUTINELY SCANNED WITH HANDHELD DETECTORS UNTIL RECENTLY ROBERT LAYNE A SECURITY GUARD AT THE SCHOOL SAYS HE RECEIVED INSTRUCTIONS FROM ADMINISTRATORS TO SEARCH PUPILS AS QUICKLY AS POSSIBLE AS THEY ARRIVED AT SCHOOL EACH MORNING THEY JUST TOLD US TO DO A LIMITED SEARCH BECAUSE THEY WERE LATE FOR CLASS HE SAYS LAST JAN 28 SHORTLY BEFORE 10 AM A FIGHT ERUPTED BETWEEN RIVAL GANG MEMBERS MR LAYNE HELPED BREAK IT UP WHILE THE YOUTHS WERE BEING TAKEN INTO CUSTODY A 14YEAROLD SUDDENLY PULLED OUT A 22CALIBER HANDGUN AND FIRED TWICE STRIKING MR LAYNE IN THE STOMACH AND GROIN POLICE AND SCHOOL OFFICIALS SAY THEY DON'T KNOW HOW THE YOUTH GOT THE GUN INTO THE SCHOOL BUT MR LAYNE WHO SAYS HE IS STILL RECOVERING FROM HIS WOUNDS REMAINS CONVINCED THAT THE HANDHELD DETECTORS WERE USELESS THE SCHOOL HAS SINCE INSTALLED A WALKTHROUGH MACHINE SCHOOL GUARDS LIKE MR LAYNE ARE SOME OF THE BIGGEST CRITICS OF THE WAY SCANNERS ARE USED SCHOOL BOARDS LOVE THEM BECAUSE IT'S SOMETHING TANGIBLE THEY CAN SHOW PARENTS SAYS PETER BLAUVELT CHAIRMAN OF THE NATIONAL ASSOCIATION OF SCHOOL SAFETY AND LAW ENFORCEMENT OFFICERS TOO OFTEN HE MAINTAINS UNTRAINED SCHOOL PERSONNEL USE THEM WHAT YOU'VE GOT IS A BUNCH OF VICE PRINCIPALS RUNNING UP AND DOWN THE HALLWAY WITH MAGIC WANDS IN THEIR HANDS MR BLAUVELT AND OTHER SECURITY EXPERTS SAY METAL DETECTORS DO HAVE A PLACE IN A COMPREHENSIVE ANTIVIOLENCE PROGRAM THAT INCLUDES COUNSELING AND OTHER MEASURES BUT OFTEN ARE SEEN AS A CUREALL AS A STANDALONE STRATEGY IT IS DOOMED TO FAILURE WARNS WESLEY C MITCHELL CHIEF OF THE LOS ANGELES SCHOOL POLICE DETECTOR MANUFACTURERS READILY CONCEDE THE LIMITATIONS OF HANDHELD UNITS AND RECOMMEND WALKTHROUGHS FOR SCHOOLS THEY SAY HANDHELDS ARE PRONE TO FALSE ALARMS SINCE UNLIKE NEWER WALKTHROUGHS THEY CANNOT DIFFERENTIATE BETWEEN A BELT BUCKLE AND A BERETTA HANDHELDS ALSO ARE NOT DESIGNED TO INSPECT BOOK BAGS BACKPACKS OR LUNCH BOXES AND HANDHELDS ARE ESPECIALLY INAPPROPRIATE FOR THE CROWDS THAT GATHER WHEN THE SCHOOL BELL RINGS SINCE THEY CAN REQUIRE SEVERAL MINUTES TO DO A THOROUGH SEARCH BUT WALKTHROUGHS HAVE THEIR OWN PROBLEMS THEY CANNOT SAFEGUARD SCHOOLS WITH SPREADOUT CAMPUSES AND MULTIPLE ENTRANCES UNLESS A DETECTOR IS POSTED AT EVERY DOOR WHILE EVERY WINDOW FENCE AND GATE IS SEALED THE IDEAL THING IS TO HAVE ONE ENTRANCE INTO AND OUT OF THE BUILDING SAYS MR CUNNINGHAM OF CONTROLLED SCREENING WHICH HAS SUPPLIED METAL DETECTORS TO SCHOOLS IN DETROIT WASHINGTON AND NEWARK NJ AMONG OTHERS UNFORTUNATELY ESPECIALLY IN A SCHOOL THESE BUILDINGS WERE NEVER DESIGNED FOR SECURITY AS WE KNOW IT TODAY SINCE EVERYONE ARRIVES AT SCHOOL AT ABOUT THE SAME TIME ANY SCANNER CAN CREATE BIG TRAFFIC JAMS THAT IS WHY RANDOM SEARCHES ARE EMPLOYED IN WHICH SAY EVERY FIFTH OR SEVENTH STUDENT IS SEARCHED BUT SCHOOLS MUST ENSURE THAT SEARCHES ARE TRULY RANDOM OTHERWISE THEY COULD BE LIABLE FOR LAWSUITS ALLEGING DISCRIMINATION AT LOS ANGELES'S GIANT BELMONT HIGH SCHOOL IN A HIGHCRIME NEIGHBORHOOD DOWNTOWN ASSISTANT PRINCIPAL IGNACIO GARCIA SHAKES UP A COFFEE CAN AND A FILE BOX FILLED WITH PAPER SLIPS PULLS ONE FROM EACH AND ANNOUNCES THAT HE AND A TEAM WILL SCAN WITH DETECTORS THE 27TH STUDENT ON THE ATTENDANCE SHEETS OF SIX CLASSROOMS IN THE WEST WING TROUBLE IS FIVE OF THE SIX CLASSES DON'T HAVE 27 STUDENTS THIS MORNING BUT TO ENSURE RANDOMNESS THE FIVEPERSON TEAM ACCEPTS NO SUBSTITUTES IN THE END THEY SCAN JUST ONE YOUTH A16YEAROLD WITH GOOD GRADES WHO HAS NOTHING METALLIC OUT OF BELMONT'S 3000 STUDENTS IN SCHOOL THAT DAY OUTSIDE IN A CONCRETE COURTYARD KNOWN AS THE FLATS BELMONT STUDENTS CALL THE SCHOOL'S PROGRAM DUMB NINE PEOPLE LOOK GUILTY AND THE TENTH PERSON WHO DOESN'T LOOK GUILTY IS THE ONE WHO GETS CHECKED SAYS EDDY CARIAS A 17YEAROLD SENIOR ANYONE COULD SNEAK IN A KNIFE ADDS VICTOR RIMOLA A 15YEAROLD STUDENT SITTING WITH FRIENDS AT A PICNIC TABLE OR A GUN SAYS REYES CONTRERAS 14 THE DANGER OF NOT SCANNING EVERYONE WAS LEARNED LAST YEAR AT JEFFERSON MIDDLE SCHOOL IN OKLAHOMA CITY THERE SCHOOL OFFICIALS CHECKED ALL STUDENTS WITH HANDHELD DETECTORS AS THEY FILED INTO SCHOOL EXCEPT FOR HANDICAPPED PUPILS WHO WERE PERMITTED TO PASS THROUGH A SEPARATE ENTRANCE ONE THURSDAY MORNING IN MARCH A PHYSICALLY DISABLED SEVENTHGRADER DREW A LOADED 22CALIBER SEMIAUTOMATIC HANDGUN ON THE PRINCIPAL FORTUNATELY ANOTHER STUDENT INTERVENED LEADING TO THE GUN WIELDER'S ARREST HANDICAPPED STUDENTS NO LONGER ARE EXEMPT FROM SCANNING BUT EVEN SCHOOLS THAT CAN SEARCH ALL STUDENTS WITH WALKTHROUGH DETECTORS HAVE NOT BECOME WEAPONFREE LAST THURSDAY IN DALLAS A 15YEAROLD HIGHSCHOOL STUDENT WAS SHOT DEAD BY ANOTHER STUDENT IN A CROWDED HALLWAY ON A DAY THE PRINCIPAL DECIDED NOT TO USE THE SCHOOL'S TWO WALKTHROUGH METAL DETECTORS CHICAGO LAST YEAR INSTALLED WALKTHROUGHS AT MOST OF ITS 67 HIGH SCHOOLS ALTHOUGH ARRESTS ARE DOWN VIOLENCE IN AND AROUND THE BUILDINGS CONTINUES A 15YEAROLD STUDENT WAS SHOT AND KILLED AND ANOTHER WAS WOUNDED INSIDE TILDEN HIGH SCHOOL ON THE SOUTH SIDE IN NOVEMBER TILDEN'S METAL DETECTORS APPARENTLY USED FOR RANDOM CHECKS ON VARYING DAYS WERE TURNED OFF THAT DAY IN DECEMBER TWO STUDENTS WERE SHOT IN SEPARATE GANGRELATED INCIDENTS OUTSIDE LAKEVIEW HIGH SCHOOL ONE AT THE FRONT DOOR INCIDENTS SUCH AS THOSE AT LAKEVIEW AREN'T UNUSUAL SOME OFFICIALS BELIEVE THAT METAL DETECTORS ENCOURAGE KIDS TO FIGHT THEIR GUN BATTLES OUTSIDE SCHOOL JUST BEYOND THE SCANNERS' REACH HOW DO YOU METALDETECT THE WHOLE WORLD SAYS CHERYL Y JOHNSON A SPOKESWOMAN FOR THE WASHINGTON SCHOOLS YOU JUST CAN'T NEW YORK WHICH FIVE YEARS AGO BEGAN RANDOMLY USING DETECTORS ONCE A WEEK AT 21 HIGH SCHOOLS REPORTS SOME SUCCESS BETWEEN 1988 AND 1992 THE NUMBER OF WEAPONS AND SERIOUS INCIDENTS AT SCHOOLS WITH DETECTORS DROPPED 35 COMPARED WITH A 26 DROP AT OTHER HIGH SCHOOLS BUT LOGISTICAL PROBLEMS HAVE LIMITED THE PROGRAM WHEN NEW YORK TRIED TO INSTALL WALKTHROUGH UNITS AND XRAYS AT 41 OF THE CITY'S 125 HIGH SCHOOLS SCHOOL AUTHORITIES WERE FACED WITH A QUANDARY WHAT TO DO ABOUT THE DOZENS OF UNGUARDED EXIT DOORS AT EACH OF THE BUILDINGS THE SCHOOL DISTRICT DECIDED TO SPEND MORE THAN 3 MILLION ON A COMPLEX ELECTROMAGNETIC DOORALARM SYSTEM THAT DELAYS EXIT DOORS FROM OPENING FOR 15 SECONDS SUPPOSEDLY GIVING SECURITY OFFICERS A CHANCE TO RESPOND WHEN THE ALARM SOUNDS BUT WHEN FIRE OFFICIALS LEARNED OF THE PLAN THEY INSISTED THAT THE SYSTEM BE MODIFIED SO THAT EXITS WOULD OPEN IMMEDIATELY IN THE EVENT OF A FIRE OR OTHER EMERGENCY THAT FORCED THE SCHOOL DISTRICT TO LINK THE DOOR SYSTEM TO FIRE ALARMS SMOKE DETECTORS SPRINKLERS AND ELEVATORS GLITCHES FOLLOWED FALSE ALARMS WRONGLY REPORTED FIRE LOCATIONS AND KEYS THAT SNAPPED OFF IN ALARM BOXES THE SYSTEM REMAINS UNDER REPAIR MEANWHILE ALL EXIT DOORS CAN BE OPENED WITHOUT DELAY ANY TIME DURING SCHOOL HOURS 9309070067 930907 BUSINESS BRIEF LIFETIME PRODUCTS INC SHAREHOLDERS SUE OVER SALE IN JUNE OF TWO SUBSIDIARIES LIFETIME PRODUCTS INC SAID SHAREHOLDERS FILED A LAWSUIT IN US DISTRICT COURT IN DALLAS AGAINST THE COMPANY CERTAIN CURRENT DIRECTORS AND A MAJOR SHAREHOLDER IN A STATEMENT THE COMPANY SAID THE SUIT SEEKS TO RESCIND THE JUNE SALE OF TWO SUBSIDIARIES LIFETIME AUTOMOTIVE PRODUCTS INC AND LIFETIME COSMETICS INC AND TO ANNUL THE ELECTION OF DIRECTORS AT THE JUNE 3 ANNUAL MEETING COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT THE DALLASBASED COMPANY EARLIER DISCLOSED IN SECURITIES AND EXCHANGE COMMISSION FILINGS THAT THE TWO SUBSIDIARIES WERE SOLD TO JENNIFER RUNYEON CHIEF EXECUTIVE OF LIFETIME PRODUCTS ANNA WENGER A MAJOR HOLDER WHO IS MARRIED TO LIFETIME PRODUCTS' CHAIRMAN CC FICHTNER AND ALPHA MARKETING CONCEPTS INC A COMPANY OWNED AND CONTROLLED BY MS WENGER AND MR FICHTNER THE PRICE WASN'T DISCLOSED BUT LIFETIME SAID THE TRANSACTION WOULD RESULT IN A ONETIME NONCASH GAIN OF 13 MILLION AND REDUCE ITS DEBT BY 17 MILLION 9309070066 930907 MARKETING & MEDIA MARKETSCAN LIQUID DIET PLANS ARE STAGING A COMEBACK BY KATHLEEN DEVENY HOPE SPRINGS ETERNAL IN THE DIETER'S BREAST NOT LONG AGO IT SEEMED THAT SUCH LIQUID DIET PLANS AS ULTRA SLIMFAST WERE FAST HEADING THE WAY OF OTHER HERETODAYGONETOMORROW WEIGHTLOSS PROGRAMS SOME DISILLUSIONED WAISTWATCHERS EVEN SEEMED READY TO EMBRACE MODERATION AND GOOD OLDFASHIONED NATURAL FOODS OVER CHEMICALLADEN DIET CONCOCTIONS BY LATE LAST YEAR SALES OF THE LIQUID DIETS WERE DECLINING PRECIPITOUSLY NO MORE A FLURRY OF NEW PRODUCTS BACKED BY HEAVYWEIGHT AD BUDGETS HAVE HELPED TURN THE LIQUID MEALS BACK INTO ONE OF THE SUPERSTARS OF THE SUPERMARKETS AT LEAST TEMPORARILY SALES OF THE LIQUID DIETS AND OTHER PROTEIN SUPPLEMENTS INCREASED 195 TO 736 MILLION DURING THE SECOND QUARTER COMPARED WITH THE YEAREARLIER PERIOD ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE ADDING HEFT TO THE CATEGORY SWEET SUCCESS A NEW PRODUCT FROM NESTLE FOOD CO A US UNIT OF NESTLE SA AVAILABLE NATIONALLY ONLY SINCE MAY THE FLEDGLING BRAND RANG UP SALES OF 5 MILLION MORE SURPRISING THOUGH WAS THE RESURGENCE OF SLIMFAST FOOD CO'S ULTRA SLIMFAST BRAND AFTER SLIMMING DOWN FOR MOST OF 1992 QUARTERLY SALES OF THE ONCEUBIQUITOUS BRAND SOARED 254 COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF FASTESTGROWING PRODUCTS IS BASED ON SALES DATA FROM SUPERMARKET SCANNERS EACH QUARTER INFORMATION RESOURCES RANKS MORE THAN 323 PRODUCT CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE GROWTH COMPARED WITH THE YEAREARLIER PERIOD LIQUID DIETS WEREN'T THE ONLY ONCETROUBLED PRODUCT TO MAKE THE ROSTER OF HOT SELLERS SALES OF SUCH LUNCH KITS AS OSCAR MAYER LUNCHABLES A MIX OF COLD CUTS CHEESES AND CRACKERS GREW 351 TO 607 MILLION DURING THE SECOND QUARTER THAT'S DUE PARTLY TO NEW PRODUCTS FROM OSCAR MAYER A UNIT OF PHILIP MORRIS COS INCLUDING ONE KIT WITH BOXES OF KOOLAID AND A LOWERFAT VARIATION AIMED AT ADULTS A WAVE OF NEW ICED TEA DRINKS BACKED BY SUCH POWERFUL MARKETERS AS COCACOLA CO AND PEPSICO INC ALSO HELPED TURN THE CATEGORY INTO THE FASTESTGROWING PRODUCT IN SUPERMARKETS TODAY SALES OF PREPARED TEA SOARED 1909 OVER THE 1992 SECOND QUARTER MEANWHILE COLA FATIGUE AND CONCERNS OVER THE QUALITY OF SOME MUNICIPAL WATER SUPPLIES BUOYED SALES OF PLAIN OLD BOTTLED WATER SALES OF NONCARBONATED WATER PRODUCTS JUMPED 222 DURING THE PERIOD OTHER STRONG SELLERS INCLUDED SUCH SIDE DISH MIXES AS NOODLE RONI WHICH IS MADE BY A UNIT OF QUAKER OATS CO FUELED BY THE LAUNCH OF NEW VARIETIES INCLUDING NOODLE RONI CORKSCREWS WITH FOUR CHEESES AND CONSUMERS' GROWING QUEST FOR HOMEY FARE THAT DOESN'T REQUIRE MANY COOKING SKILLS SALES OF SIDE DISH MIXES JUMPED 574 DURING THE QUARTER PREWASHED SALAD FIXINGS AND BAGELS AND BIALYS CONTINUED TO RATE HIGH AMONG SHOPPERS SALES OF THOSE CATEGORIES INCREASED 798 AND 331 RESPECTIVELY CERTAINLY MANY OF TODAY'S HOTSELLING CATEGORIES WILL QUICKLY FADE FROM FAVOR WHEN MARKETERS' PROMOTIONAL BUDGETS ARE EXHAUSTED SOME TREND WATCHERS ARE ALREADY PREDICTING THE LIQUID DIETS WILL BE AMONG THEM CONSUMERS NOWADAYS FAVOR LOWCALORIE VERSIONS OF MORE TRADITIONAL FOODS OVER MEAL REPLACEMENTS ACCORDING TO JOHN LAROSA EDITOR OF DIET BUSINESS BULLETIN MEAL REPLACEMENTS ARE NOT NEARLY AS POPULAR AS THEY WERE A FEW YEARS AGO HE SAYS WHAT'S HAPPENING NOW IS THAT THERE ARE A LOT OF ADVERTISEMENTS BUT SOME MARKETING EXPERTS SAY THE LIQUIDDIET CATEGORY'S RECENT WOES WERE DUE MORE TO MISSTEPS ON THE PART OF MARKET LEADER SLIMFAST THAN TO DIETERS' FICKLE NATURE RATHER THAN ITS FAMILIAR CELEBRITY TESTIMONIALS THE COMPANY BET HEAVILY LAST YEAR ON AN ADVERTISING CAMPAIGN THAT FEATURED THE RESIDENTS OF POUND WIS ALL OF WHOM WERE ATTEMPTING TO LOSE WEIGHT THE ULTRA SLIMFAST WAY AND IN ITS SCRAMBLE TO MAINTAIN ITS LEAD SLIMFAST SPUN OUT SCORES OF DIET SNACKS AND EVEN FROZEN ENTREES UNDER THE ULTRA SLIMFAST BRAND AND SHIFTED ITS AD SPENDING ACCORDINGLY NOWADAYS THOUGH THE COMPANY IS ONCE AGAIN FOCUSING ITS ATTENTION ON ITS CORE DIET DRINKS MANY OF ITS DIET FOODS INCLUDING THE ENTREES HAVE BEEN SCRAPPED SLIMFAST IS PUSHING PREMIXED SHAKES IN SINGLESERVING CANS AND HAS ADDED SUCH READYTODRINK FLAVORS AS COFFEE AND STRAWBERRY NEW TELEVISION SPOTS FEATURE PERKY TESTIMONIALS FROM SUCH FORMERLY FLABBY CELEBRITIES AS ANN GILLIAN AND SHARI BELAFONTE WHO TOUT THE PRODUCTS' GOOD TASTE DURING THE 1992 SECOND QUARTER SLIMFAST SPENT 164 MILLION HAWKING ITS DIET FOODS AND ONLY 23 MILLION PUSHING ITS PREMIXED DRINKS ACCORDING TO COMPETITIVE MEDIA REPORTING INC WHICH TRACKS AD SPENDING DURING THE COMPARABLE PERIOD THIS YEAR THE COMPANY SPENT 65 MILLION ON ADS FOR READYTODRINK SHAKES AND ABOUT 36 MILLION ON FOOD PRODUCTS NESTLE WHICH LAUNCHED SWEET SUCCESS AFTER THE CATEGORY'S SALES HAD ALREADY BEGUN TO SLIDE MAINTAINS EARLY RESULTS ARE ROBUST JUST LIKE SLIMFAST ITS DIET PLAN RECOMMENDS DOWNING TWO OF ITS DIET SHAKES AND A SENSIBLE MEAL EACH DAY BUT THE COMPANY THAT BROUGHT THE WORLD CRUNCH BARS AND TOLL HOUSE MORSELS IS AIMING TO TEMPT DIETERS BY TRADING ON ITS REPUTATION AS A CHOCOLATIER NESTLE SAYS ITS SHAKES WHICH COME IN SUCH FLAVORS AS DARK CHOCOLATE FUDGE AND CHOCOLATE RASPBERRY TRUFFLE WILL LURE CUSTOMERS FROM COMPETITORS ADS FOR SWEET SUCCESS FEATURE SEVERAL SVELTE ACTRESSES WHO BOAST OF LOSING SIX TO EIGHT POUNDS AFTER WEEKS OF CHOWING DOWN ON CHOCOLATE FUDGE AND MILK CHOCOLATE THEY CLAIM THEY FELT TOTALLY INDULGED ALL FOR THE SAME CALORIES AS OTHER DIET PLANS TO MAKE SURE DIETERS GOT THE MESSAGE NESTLE SPENT 33 MILLION ON ADS QUARTER COMPETITIVE MEDIA REPORTING SAYS WE WERE CONFIDENT THAT IF WE DELIVERED A GOODTASTING PRODUCT THAT IT WOULD SUCCEED SAYS FRANK HIGGINS DIRECTOR OF MARKETING AT NESTLE FOOD THE KEY TO THE CATEGORY IS NEWNESS IN FACT CHOCOLATE LOVERS WILL PROBABLY ALWAYS OUTNUMBER SUCCESSFUL DIETERS DESPITE BOOMERS' DECADELONG PREOCCUPATION WITH HEALTH AND FITNESS AMERICA REMAINS ONE OF THE FATTEST NATIONS ON EARTH AND SINCE 90 TO 95 OF ALL DIETERS ON ANY WEIGHTLOSS PLAN REGAIN ANY WEIGHT THEY'VE LOST WITHIN FIVE YEARS CONSUMERS ARE ALWAYS VULNERABLE TO PRODUCTS THAT PROMISE TO MAKE THE PROBLEM DISAPPEAR THAT BODES WELL FOR THE LIQUID DIET MAKERS AT LEAST UNTIL THE NEXT WEIGHTLOSS FAD COMES ALONG 9309070065 930907 BUSINESS BRIEF REPUBLIC GOLDFIELDS INC COMPANY IN LETTER OF INTENT WITH CUBA ON CONCESSION REPUBLIC GOLDFIELDS INC SAID IT ENTERED INTO A LETTER OF INTENT WITH THE GOVERNMENT OF CUBA TO EXPLORE AND DEVELOP A CONCESSION CONTAINING COPPER NICKEL AND GOLD IN EASTERN CUBA REPUBLIC A TORONTO MINING CONCERN SAID IT WILL HAVE THE RIGHT TO EARN A 50 INTEREST IN ANY COMMERCIAL DEPOSIT BY EXPLORING AND BRINGING IT TO THE FEASIBILITY STAGE THE CUBAN GOVERNMENT WILL CONTRIBUTE 50 OF THE COST AND HOLD 50 OF ANY DEPOSIT BROUGHT INTO PRODUCTION MARC HENDERSON PRESIDENT OF REPUBLIC SAID THE COMPANY WILL SPEND BETWEEN 500000 AND 1 MILLION IN THE FIRST YEAR OF DRILLING AND PROBABLY HAVE A FEASIBILITY STUDY COMPLETED BY THE THIRD QUARTER OF NEXT YEAR REPUBLIC ALSO HOLDS AN OPTION ON ANOTHER GOLD PROSPECT IN CENTRAL CUBA 9309070064 930907 BUSINESS BRIEF OSHMAN'S SPORTING GOODS INC RETAILER REPORTS NET LOSS FOR FISCAL SECOND QUARTER CITING STRONG COMPETITION FROM OTHER SPORTING GOODS SUPERSTORES AND POOR SALES IN CALIFORNIA DUE TO THE WEAK ECONOMY OSHMAN'S SPORTING GOODS INC POSTED A NET LOSS OF 16 MILLION OR 28 CENTS A SHARE FOR THE SECOND QUARTER ENDED JULY 31 A YEAR EARLIER IT HAD A PROFIT OF 62000 OR ONE CENT A SHARE SALES EDGED UP TO 813 MILLION FROM 81 MILLION ALVIN LUBETKIN CHIEF EXECUTIVE OFFICER SAID THE HOUSTONBASED COMPANY ALSO EXPECTS TO POST LOSSES FOR ITS CURRENT THIRD QUARTER AND FOR THE YEAR MR LUBETKIN WHO HAD SAID AT OSHMAN'S ANNUAL MEETING IN JUNE THAT THE COMPANY WAS LIKELY TO POST LITTLE OR NO PROFIT THIS YEAR SAID FRIDAY THAT OSHMAN'S RETURN TO PROFITABILITY WILL BE DELAYED 12 TO 18 MONTHS THE SPORTING GOODS RETAILER IS IN THE MIDST OF AN EFFORT TO TRANSFORM MANY OF ITS 166 UNITS INTO MEGASTORES THAT CAN COMPETE MORE EFFECTIVELY WITH OTHER NATIONAL SPORTING GOODS SUPERSTORES FOR THE SIX MONTHS OSHMAN'S HAD A NET LOSS OF 4 MILLION OR 70 CENTS A SHARE COMPARED WITH A NET LOSS OF 924000 OR 16 CENTS A SHARE A YEAR EARLIER SALES ROSE 16 TO 1455 MILLION FROM 1431 MILLION 9309070063 930907 BUSINESS BRIEF PEARSON PLC FIRSTHALF PRETAX PROFIT ROSE BY 34 ON DOLLAR'S STRENGTH PEARSON PLC PUBLISHER OF THE FINANCIAL TIMES NEWSPAPER SAID PRETAX PROFIT ROSE 34 IN THE FIRST HALF BOLSTERED BY THE RISE IN THE DOLLAR AGAINST THE POUND AND COSTCUTTING MEASURES PEARSON SAID IT WILL PAY AN UNCHANGED FULLYEAR DIVIDEND OF 12 PENCE A SHARE PRETAX PROFIT WAS 463 MILLION 707 MILLION COMPARED WITH 346 MILLION FOR THE FIRST HALF OF LAST YEAR SALES ROSE 19 TO 8244 MILLION FROM 6948 THE PRETAX PROFIT WAS AT THE HIGHER END OF ANALYSTS' PREVIOUS ESTIMATES AN UNCHANGED INTERIM DIVIDEND OF 5375 PENCE A SHARE WAS ALSO EXPECTED IN A STATEMENT PEARSON REITERATED ITS INTENTION TO CONCENTRATE ON ITS MEDIA INTERESTS AND SAID THESE BUSINESS ALONG WITH ITS INVESTMENT BANKING ACTIVITIES INCREASED OPERATING PROFIT BY TWOTHIRDS COMPARED WITH THE YEAREARLIER PERIOD THE GROUPS' OVERALL OPERATING PROFIT FOR THE SIX MONTHS ROSE 70 TO 515 MILLION 9309070061 930907 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AT AN UZBEKISTAN CONFERENCE TO LURE FOREIGN INVESTMENT PRESIDENT ISLAM KARIMOV SAID THE FORMER SOVIET REPUBLIC SEEKS TO END ITS ECONOMIC RELIANCE ON RUSSIA HE TOLD REPRESENTATIVES OF 60 FOREIGN BANKS AND FINANCIAL ORGANIZATIONS THAT THE ISLAMIC RELIGION WOULDN'T BE ALLOWED TO INFLUENCE POLITICS IN THE CENTRAL ASIAN NATION OF 22 MILLION PEOPLE MAINLY MUSLIMS OUR MAIN OBJECTIVE IS TO MORE QUICKLY ATTAIN A PLACE IN THE WORLD COMMUNITY HE SAID EMPHASIZING THAT DESPITE THE SLOW PACE OF ITS REFORMS UZBEKISTAN AIMS TO DEVELOP A MARKET ECONOMY MR KARIMOV CITED PROGRESS IN AGRICULTURE SAYING 70 OF THE REPUBLIC'S MEAT 80 OF DAIRY PRODUCTS AND 60 OF VEGETABLES ARE PRIVATELY PRODUCED BUT HE SAID THE TRANSFORMATION OF INDUSTRY FROM STATE OWNERSHIP WOULD BE MORE GRADUAL RICH IN MINERALS UZBEKISTAN IS THE WORLD'S EIGHTHBIGGEST GOLD PRODUCER AND HAS LARGE OIL AND GAS RESERVES BUT ITS ECONOMY IS STILL TIED CLOSELY TO RUSSIA AND USES RUSSIA'S RUBLE CURRENCY THAILAND OPENED PART OF THE SECURITIES TRADING BUSINESS TO FOREIGN AND DOMESTIC COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTIONS THE THAI SECURITIES AND EXCHANGE COMMISSION'S NEW RULES ALLOW THE INSTITUTIONS INCLUDING BANKS WITH LICENSES UNDER THAILAND'S OFFSHORE BANKING FACILITY TO TRADE AND UNDERWRITE DEBT INSTRUMENTS BUT NOT EQUITY DEVELOPING AND EXPANDING THAILAND'S BOND MARKET IS HIGH ON THE SEC'S AGENDA BELGIUM WHICH HOLDS THE EUROPEAN COMMUNITY'S ROTATING PRESIDENCY IS USING A COMIC BOOK TITLED EUROPAE TO EXPLAIN TO CHILDREN AND ADULTS HOW THE EC WORKS AND SERVES THEM THE GOVERNMENT PUBLISHED 20000 COPIES OF THE CARTOON BOOK IN FRENCH DUTCH ENGLISH AND ITALIAN FEATURING A NEAREXTINCT MIGRATORY BIRD NAMED PAX PEACE IN LATIN AS THE MAIN GUIDE TO THE 12NATION TRADE BLOC WITH HEADQUARTERS IN BRUSSELS BELGIUM ALSO HAS USED TELEVISION AND NEWSPAPER ADS IN ITS EDUCATIONAL CAMPAIGN EC OFFICIALS HAVE BEEN ALARMED IN RECENT YEARS BY POLLS SHOWING SPOTTY PUBLIC KNOWLEDGE ABOUT THE BLOC CHINA JOINED THE INTERNATIONAL AIR TRANSPORT ASSOCIATION WHICH HAS MORE THAN 200 MEMBERS REPRESENTING 90 OF SCHEDULED CARRIERS' OPERATIONS GLOBALLY THE FIRST CHINESE MEMBERS ARE AIR CHINA OF BEIJING CHINA EASTERN OF SHANGHAI AND CHINA SOUTHERN OF GUANGZHOU OR CANTON THE GROUP SAID AIR TRAFFIC IN CHINA INCREASED 30 LAST YEAR THE FASTEST RATE OF ANY COUNTRY WITH ENORMOUS POTENTIAL FOR EXPANSION ESPECIALLY ON DOMESTIC ROUTES THE EASTERN GERMAN RAILWAY THE DEUTSCHE REICHSBAHN WON'T HAVE TO LAY OFF WORKERS BECAUSE 23000 OR 3000 MORE THAN EXPECTED ACCEPTED AN OFFER OF CASH TO LEAVE THEIR JOBS BY YEAR END THE WORKFORCE REDUCTIONS RESULT FROM THE REICHSBAHN'S MODERNIZATION AND A RESTRUCTURING OF MAINTENANCE FOR IT AND THE OTHER STATEOWNED RAILWAY THE WESTERN REGION'S DEUTSCHE BUNDESBAHN THE TWO SYSTEMS WHICH ARE TO BE MERGED EVENTUALLY PLAN TO ELIMINATE A TOTAL OF 33000 JOBS THROUGH ATTRITION BY THE YEAR 2002 CHINA FROZE PRICES OF STATESUBSIDIZED COMMODITIES AND SERVICES FOR THE REST OF THE YEAR IT ALSO ORDERED LOCAL GOVERNMENTS TO PREVENT FREEMARKET PRICES OF VEGETABLES AND NONSTAPLE FOODS FROM SKYROCKETING THE MOVES TO REDUCE INFLATION APPLY TO ALL REMAINING STATECONTROLLED GOODS AND SERVICES EXCLUDING ELECTRICITY AND RAIL CARGO TRANSPORT BY THE END OF 1992 THE MARKET SET PRICES FOR 80 OF INDUSTRIAL AND FARM PRODUCTS BUT A DUALPRICE SYSTEM STILL EXISTS FOR MANY PRODUCTS SUCH AS INDUSTRIAL RAW MATERIALS LAST SPRING CITIES REMOVED THE LAST PRICE CONTROLS ON STAPLES IN DEVELOPING A MARKET ECONOMY BUT THE GOVERNMENT HAS SINCE LAUNCHED AN AUSTERITY PROGRAM TO COOL THE RUNAWAY ECONOMY IN JULY LIVING COSTS IN CITIES WERE 23 HIGHER THAN A YEAR EARLIER SEPARATELY INDIVIDUALS' HARDCURRENCY DEPOSITS IN THE BANK OF CHINA SWELLED 28 IN THE FIRST SEVEN MONTHS TO 804 BILLION THE 194 BILLION JUMP MORE THAN DOUBLE THE YEAREARLIER RISE WAS ATTRIBUTED TO MORE CHINESE TRAVELING ABROAD AND EASIER ACCESS TO FOREIGN CURRENCY THE BANK HOLDS 70 OF CHINA'S PERSONAL HARDCURRENCY ACCOUNTS INCREASINGLY USED IN BUSINESS DEALINGS A DISPUTE ABOUT WORK RULES AT GOVERNMENTRUN AIR INDIA CANCELED DOZENS OF FLIGHTS AND THE AIRLINE ASKED FOREIGN CARRIERS TO FLY THOUSANDS OF STRANDED PASSENGERS OUT OF THE COUNTRY FLOODING IN CHINA THIS YEAR DESTROYED FOUR MILLION ACRES OF CROPS RUINED TWO MILLION HOMES KILLED AT LEAST 900 PEOPLE AND FORCED THE EVACUATION OF 31 MILLION OTHERS CAUSING ECONOMIC LOSSES TOTALING 701 BILLION ARGENTINA SAID IT HAD ZERO INFLATION IN AUGUST THE BEST PERFORMANCE IN TWO DECADES SLOWING THE RATE FOR THE PAST 12 MONTHS TO 91 A 25YEAR LOW 9309070060 930907 BUSINESS BRIEF QANTAS AIRWAYS LTD PARENT OF THOMAS COOK LTD BUYS BACK 49 EQUITY STAKE QANTAS AIRWAYS LTD OF AUSTRALIA HAS SOLD ITS 49 STAKE IN TRAVEL AND FOREIGNEXCHANGE COMPANY THOMAS COOK LTD BACK TO ITS PARENT COMPANY FOR AN UNDISCLOSED SUM QANTAS SAID FRIDAY IN A STATEMENT THAT IN 1986 IT MADE THE INVESTMENT WITH THE LONDONBASED THOMAS COOK GROUP LTD IN ORDER TO STRENGTHEN ITS SALES AND DISTRIBUTION NETWORK IN AUSTRALIA WE HAVE SUCCEEDED IN THAT AIM AND NOW HAVE A VERY STRONG LONGTERM RELATIONSHIP WITH THE THOMAS COOK GROUP SAID JOHN SCHAAP GENERAL MANAGER FOR QANTAS IN AUSTRALIA THOMAS COOK IS OWNED BY GERMANY'S WESTDEUTSCHE LANDESBANK GIROZENTRALE A SPOKESMAN FOR QANTAS SAID THE AIRLINE WILL MAINTAIN STRONG COMMERCIAL TIES WITH THOMAS COOK QANTAS IS 25OWNED BY BRITISH AIRWAYS PLC AND 75OWNED BY THE AUSTRALIAN GOVERNMENT 9309070059 930907 BUSINESS BRIEF DOMINION RESOURCES INC REGULATORS RECOMMEND CUT OF 25 IN RATEBOOST BID A STATE CORPORATION COMMISSION OF VIRGINIA EXAMINER RECOMMENDED A 235 MILLION RATE INCREASE FOR DOMINION RESOURCES INC'S VIRGINIA POWER UNIT ABOUT 25 LESS THAN WHAT DOMINION HAD REQUESTED THE LOWER RATE INCREASE FOR THE UTILITY BASED IN RICHMOND VA WAS MAINLY PROMPTED BY FALLING INTEREST RATES WHICH REDUCE THE COMPANY'S COST OF CAPITAL A SPOKESMAN FOR THE COMMISSION SAID THE DECISION WOULD HAVE THE EFFECT OF REDUCING THE MONTHLY ELECTRICITY BILL FOR AN AVERAGE CUSTOMER FROM THE INTERIM RATE OF 9333 TO 8936 THE INTERIM RATE HAS BEEN IN EFFECT FOR 10 MONTHS THE COMMISSION ALSO SAID THE EXAMINER RECOMMENDED THE COMPANY'S AUTHORIZED RATE OF RETURN ON EQUITY BE LOWERED TO A RANGE OF 105 TO 115 FROM THE CURRENT 115 TO 125 RANGE A FINAL RULING BY THE COMMISSION IS EXPECTED IN NOVEMBER OR DECEMBER 9309070058 930907 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S AND MONDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT COMMERCIAL CREDIT CO 200 MILLION OF NOTES DUE SEPT 1 2003 PRICED AT PAR TO YIELD 59 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC HCC INSURANCE HOLDINGS INC 18 MILLION SHARES OF COMMON STOCK PRICED AT 2950 APIECE THROUGH LEAD UNDERWRITER WILLIAM BLAIR & CO OF THE TOTAL THE COMPANY WILL SELL 11 MILLION SHARES THE REST ARE TO BE SOLD BY SHAREHOLDERS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1993G34 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY UBS SECURITIES THE OFFERING SERIES 1993199 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 50 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 247 BACKED BY AN INTERESTONLY CLASS OF REMIC 1993G34 THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 297 YEARS THE UNDERWRITER IS NOMURA SECURITIES INTERNATIONAL INC ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 200 BILLION ITALIAN LIRE OF 8 3/8 EUROBONDS DUE OCT 1 2003 AT ISSUE PRICE 101295 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 848 AFTER DEDUCTING FULL FEES OF TWO POINTS GUARANTOR ABBEY NATIONAL PLC BAYERISCHE VEREINSBANK OVERSEAS FINANCE CURACAO LTD GERMAN PARENT 500 MILLION DEUTSCHE MARKS OF 625 EUROBONDS DUE OCT 14 2003 AT ISSUE PRICE 10190 VIA BAYERISCHE VEREINSBANK AG THE BONDS YIELD 6333 AFTER DEDUCTING FULL FEES OF 2 1/2 POINTS A MARGIN OF 20 BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR BAYERISCHE VEREINSBANK AG CREDIT COMMERCIAL DE FRANCE FRANCE 150 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1998 AT ISSUE PRICE 10025 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO SPA INTEREST PAYABLE QUARTERLY AT 625 BASIS POINTS BELOW THREEMONTH LONDON INTERBANK OFFERED RATE FOR LIRE FEES 1/4 CREDIT LOCAL DE FRANCE FRENCH AGENCY 150 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE DECEMBER 1996 AT ISSUE PRICE 100375 VIA CREDITO ITALIANO INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR LIRE LESS 025 POINT FEES 025 POINT DEUTSCHE PFANDBRIEF & HYPOTHEKENBANK AG GERMANY 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE SEPT 21 1998 WITH WARRANTS ATTACHED CARRYING A 2 1/2 COUPON AT PAR VIA UNION BANK OF SWITZERLAND WARRANTS EXERCISABLE FROM SEPT 21 1993 TO JUNE 21 1994 INTO 6 1/2 GERMAN TREUHAND BONDS DUE APRIL 2003 FEES STANDARD GOLDMAN SACHS & CO US 125 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE OCT 4 2005 AT ISSUE AND REOFFER PRICE 9975 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS MINIMUM COUPON 5375 MAXIMUM 9 FEES 05 POINT MDX PUBLIC CO THAILAND 80 MILLION OF CONVERTIBLE EUROBONDS DUE SEPT 17 2003 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC ISSUER RESERVES OPTION TO INCREASE ISSUE BY 20 MILLION INDICATED COUPON 475 TO 5 BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY BETWEEN APRIL 1 1994 AND AUG 30 2003 AT INDICATED PREMIUM OF 12 TO 14 BONDS CALLABLE FROM SEPT 17 1997 SUBJECT TO A SHARE PRICE MAINTAINING AT LEAST 140 OF CONVERSION PRICE FOR 30 CONSECUTIVE DAYS TERMS TO BE FIXED THURSDAY FEES 25 POINTS OBAYASHI FINANCE INTERNATIONAL BV NETHERLANDS JAPANESE PARENT 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1996 AT ISSUE PRICE 100225 VIA SANWA INTERNATIONAL PLC INTEREST PAYABLE QUARTERLY AT THREEMONTH YEN LIBOR PLUS 275 BASIS POINTS ISSUED OFF EURO MEDIUMTERMNOTE PROGRAM KEEPWELL AGREEMENT WITH OBAYASHI CORP FEES 025 POINT SUDWESTDEUTSCHE GENOSSENSCHAFTSZENTRALBANK AG GERMANY 150 MILLION MARKS OF 625 EUROBONDS DUE OCT 2 2003 AT ISSUE PRICE 102 VIA TRINKAUS & BURKHARDT BONDHOLDERS HAVE RIGHT TO CONVERT COUPON ON OCT 2 1995 AND OCT 2 2001 TO FLOATING RATE OF SIXMONTH MARK LIBOR LESS 005 FEES 25 POINTS LESS 0125 POINT FOR LEAD MANAGER 9309070057 930907 FOREIGN EXCHANGE BUNDESBANK IS BACK IN THE SPOTLIGHT AS PRESSURE FOR INTEREST RATE CUT MOUNTS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE GERMAN CENTRAL BANK TAKES CENTER STAGE AGAIN THIS WEEK AS CURRENCY PLAYERS WAIT TO SEE WHETHER IT TRIMS INTEREST RATES FOLLOWING ITS REGULAR POLICYSETTING MEETING ON THURSDAY WITH THE CURRENCIES OF OTHER EUROPEAN NATIONS FEELING THE STRAIN OF GERMANY'S TIGHT MONETARY POLICY THURSDAY'S MEETING IS CAPTURING MORE ATTENTION THAN USUAL WE'RE IN THE MIDDLE OF A CONTINUING AFTERMATH OF THE ERM CRISIS WHICH BROKE ON THE FIRST OF AUGUST SAYS MARC HENDRIKS RESEARCH DIRECTOR AT SWISS BANK CORP INTERNATIONAL IN LONDON MONETARY AUTHORITIES AT THAT TIME ADJUSTED EUROPE'S EXCHANGE RATE MECHANISM TO PERMIT CURRENCIES TO FLUCTUATE AS MUCH AS 15 FROM CENTRAL RATES BUT THE OUTLOOK FOR WEAKER EUROPEAN CURRENCIES SUCH AS THE BELGIAN AND FRENCH FRANCS AS WELL AS FOR THE ENTIRE EUROPEAN CURRENCY STABILIZATION ARRANGEMENT REMAINS TROUBLED IN THE NEAR TERM BRIGHTENING THAT OUTLOOK WOULD TAKE A DISCOUNT RATE CUT OF AT LEAST 025 PERCENTAGE POINT AND THE CONFIDENCE OF MORE CUTS TO COME SAYS RICHARD PORTER MANAGER OF CORPORATE TREASURY SERVICES AT BANQUE BRUXELLES LAMBERT THE CHANCES OF A RATE CUT IMPROVED FRIDAY WHEN AN UNEXPECTED DECLINE IN US NONFARM PAYROLLS COST THE DOLLAR MORE THAN TWO PFENNIGS AGAINST THE GERMAN MARK THE US CURRENCY STOOD AT 16170 MARKS LATE FRIDAY AFTERNOON IN NEW YORK DOWN FROM 16440 MARKS ON THURSDAY THE LABOR DAY HOLIDAY IN THE US KEPT FOREIGNEXCHANGE DEALINGS QUIET YESTERDAY THE DOLLAR STOOD AT 16120 MARKS IN LATE LONDON TRADING DOWN FROM FRIDAY'S NEW YORK QUOTE OF 16170 MARKS AND AT 10420 YEN DOWN FROM 10450 YEN IN NEW YORK ON FRIDAY ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10445 YEN AND AT 16113 MARKS THE DOLLAR IS LIKELY TO REMAIN SOFT FOR THE NEXT COUPLE OF WEEKS ANALYSTS SAY THOUGH BULLS EXPECT IT TO REBOUND LATER IN THE YEAR AS EUROPEAN INTEREST RATES FALL A STRONG MARK HELPS KEEP GERMAN INFLATION AT BAY BY LOWERING THE COST OF IMPORTS THAT GIVES THE BUNDESBANK MORE FLEXIBILITY TO CUT RATES BUT A RATE CUT IS MORE LIKELY IN LATE SEPTEMBER OR OCTOBER THAN THIS WEEK INFLATION AND MONEYSUPPLY GROWTH ARE STILL RUNNING ABOVE THE BANK'S TARGET NOTES MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON WITHOUT A RATE CUT PRESSURE ON WEAK EUROPEAN CURRENCIES WILL MOUNT ANALYSTS SAY THESE CURRENCIES ARE CAUGHT IN A POLICY DILEMMA FACING EUROPEAN GOVERNMENTS MR O'HANLON SAYS THEIR RECESSIONRIDDEN ECONOMIES CRY OUT FOR LOWER INTEREST RATES TO BOOST CONSUMER DEMAND AND IN BELGIUM'S CASE LOWER RATES ARE CRITICAL TO SHRINKING THE BUDGET DEFICIT A THIRD OF WHICH IS FUNDED IN MONEYMARKET INSTRUMENTS CURRENCIES TEND TO WEAKEN WHEN INTEREST RATES FALL BECAUSE INVESTORS SHIFT FUNDS TO COUNTRIES WHERE YIELDS ARE HIGHER BUT IF POLICY MAKERS TAKE ADVANTAGE OF THE WIDER ERM BANDS TO CUT RATES AGGRESSIVELY THEY RISK LOSING THE INFLATIONFIGHTING CREDIBILITY WON THROUGH YEARS OF MONETARY DISCIPLINE IMPOSED BY THE EUROPEAN MONETARY SYSTEM WORRIED BONDMARKET PLAYERS MIGHT THEN DRIVE YIELDS HIGHER FORCING GOVERNMENTS TO PAY HIGHER RATES TO FUND THEIR DEFICITS MR O'HANLON SAYS THAT COULD CAUSE MORE ECONOMIC PRESSURE IN TERMS OF THE BUDGET DEFICIT HE ADDS THEN THE ONLY RESPONSE WOULD BE TO HIKE TAXES WHICH IS THE WORST THING TO DO IN THE CURRENT ECONOMIC CYCLE THE BELGIAN FRANC IS MOST VULNERABLE TO SPECULATIVE PRESSURE ANALYSTS SAY BECAUSE OF BELGIUM'S LARGE BUDGET DEFICIT THE DANISH KRONE SWEDISH KRONA FRENCH FRANC AND ITALIAN LIRA ARE ALSO LIKELY TARGETS THE MARK WILL REMAIN THE BENEFICIARY THEY SAY WHILE THE DOLLAR IS UNLIKELY TO DUPLICATE THE GAINS IN PREVIOUS ERM UPHEAVALS 9309070056 930907 BUSINESS BRIEF FREDERICK'S OF HOLLYWOOD INC FIRM'S RECAPITALIZATION PLAN INVOLVES RECLASSIFYING SHARES FREDERICK'S OF HOLLYWOOD INC DRAFTED A RECAPITALIZATION PROPOSAL DESIGNED TO GIVE MANAGEMENT GREATER FLEXIBILITY TO USE EQUITY FOR FUTURE FINANCINGS AND ACQUISITIONS AMONG OTHER THINGS THE PROPOSAL INVOLVES A REVERSE SPLIT OF THE COMPANY'S CAPITAL STOCK AND THE CREATION OF A NEW CLASS B CAPITAL STOCK THE COMPANY WOULD REVERSE SPLIT ITS EXISTING STOCK AT A 1TO3 RATIO REDUCING THE NUMBER OF SHARES OUTSTANDING TO 29 MILLION FROM 88 MILLION THOSE SHARES WOULD THEN BE RECLASSIFIED AS CLASS A CAPITAL STOCK EACH HAVING ONE VOTE FREDERICK'S A SPECIALTY RETAILER OF WOMEN'S APPAREL WOULD THEN DISTRIBUTE TO HOLDERS OF CLASS A CAPITAL STOCK TWO SHARES OF NONVOTING CLASS B CAPITAL STOCK FOR EACH SHARE OF CLASS A CAPITAL STOCK BOTH CLASSES WOULD BE TRADED ON THE NEW YORK STOCK EXCHANGE THE PROPOSAL IS SUBJECT TO APPROVAL BY SHAREHOLDERS OF RECORD AS OF SEPT 15 9309070055 930907 BURMAH CASTROL PLC DIVISION LONDON BRITISH LUBRICANTS MAKER BURMAH CASTROL PLC SAID ITS METALLURGICAL CHEMICALS DIVISION HAS SET UP A NEW TRADING COMPANY IN THAILAND CALLED FOSECO THAILAND LTD THE COMPANY IS A JOINT VENTURE WITH LOXELY A LONGSTANDING PARTNER OF BURMAH CASTROL IN THAILAND BURMAH CASTROL HAS A 74 STAKE IN THE JOINT VENTURE BURMAH CASTROL'S METALLURGICAL CHEMICALS DIVISION CALLED FOSECO HAS MANUFACTURING OPERATIONS IN THE PHILIPPINES AND INDONESIA IT ALSO HAS TRADING COMPANIES IN SINGAPORE AND MALAYSIA 9309070054 930907 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE AUSTERITY BRINGS A SOBER NOTE TO TEACHER CONTRACT TALKS MONEY IS TIGHT BUT FACULTY MEMBERS ARE RESIGNED TO IT SAYS JIM CASASSA LABORNEGOTIATIONS CONSULTANT FOR SAN FRANCISCO'S UNIFIED SCHOOL DISTRICT IN MINNESOTA WHERE ALL 400 PUBLIC SCHOOL DISTRICTS ARE NEGOTIATING THEIR CONTRACTS THIS YEAR THERE HAVE BEEN FEW CALLS TO STRIKE DESPITE GRUMBLING OVER A CALL BY GOV ARNE CARLSON THAT PUBLIC EMPLOYEES SETTLE FOR NO PAY INCREASES NEW YORK TEACHERS HAVE TENTATIVELY SETTLED AFTER TWO YEARS WITHOUT A CONTRACT BUT TALKS HAVE BEEN CONTENTIOUS IN CLEVELAND WHERE A STRIKE REMAINS POSSIBLE LATER THIS FALL SALARY ISSUES SHOULD BE EASIER TO RESOLVE IN MASSACHUSETTS BECAUSE A STATE EDUCATIONREFORM MEASURE PROVIDES ADDITIONAL MONEY AND IN UNIONSTRONG RHODE ISLAND STATEMANDATED MEDIATION LEADS TO QUICKER CONTRACT AGREEMENTS CHICAGO DELAYS THE FIRST DAY OF SCHOOL AS CONTRACT TALKS CONTINUE IN THE FACE OF A 300 MILLION SCHOOLSYSTEM DEFICIT RISING DISABILITY CLAIMS SWELL SOCIAL SECURITY EXPENDITURES THE WHITE HOUSE SAYS SOCIAL SECURITY OUTLAYS FOR THE FISCAL YEAR ENDING SEPT 30 ARE RUNNING 800 MILLION HIGHER THAN HAD BEEN PROJECTED IN APRIL AND IT BOOSTS PROJECTIONS FOR THE NEXT FOUR YEARS BY 156 BILLION NEARLY TWOTHIRDS OF THE INCREASE REFLECTS SURGING CLAIMS FOR DISABILITY BENEFITS THEY ARE EXPECTED TO TOTAL 25 MILLION THIS YEAR UP 40 FROM 1990 PERPLEXED OFFICIALS CITE THE SLOW ECONOMY AND STEPPED UP EFFORTS TO INFORM PEOPLE OF THEIR RIGHT TO FILE FOR BENEFITS IN ADDITION RECENT COURT CASES HAVE MADE IT EASIER TO QUALIFY AND THE AGING OF BABY BOOMERS INTO THE MORE DISABILITYPRONE 40S AND 50S COULD BE A FACTOR SOCIAL SECURITY DISABILITY PAYMENTS NOW RUN ABOUT 38 BILLION MONTHLY WORK TEAMS CHART ALTERNATIVES TO TOPDOWN PERFORMANCE APPRAISALS EVERY WEEK TEAM MEMBERS AT SOMANETICS CORP VOTE ON BONUSES RANGING FROM GIFT CERTIFICATES TO VACATION TIME FOR TOPACHIEVING PEERS THE COMPANY PERIODICALLY GRANTS GROUP AWARDS INCLUDING COMPANYSPONSORED OUTINGS AND CASH SATURN CORP DOESN'T EVALUATE EMPLOYEES INDIVIDUALLY BUT TEAMS CAN IMPOSE SANCTIONS ON PROBLEM WORKERS INCLUDING THREEDAY SUSPENSIONS PERKINELMER CORP SAYS PEER PRESSURE SUFFICES TO MOTIVATE TEAM MEMBERS AND CORNING INC NOTES THAT TEAMMATES JUDGE EACH OTHER MORE CRITICALLY THAN MANAGERS WOULD SIX HOSPITALS MANAGED BY QUORUM HEALTH RESOURCES INC REVERSE HIERARCHICAL PERFORMANCE REVIEWS EMPLOYEES COLLECT FEEDBACK ON THEIR PERFORMANCE FROM CUSTOMERS AND COWORKERS AND THEN DISCUSS THE FINDINGS WITH SUPERVISORS MANY EMPLOYERS SAY INDIVIDUAL PERFORMANCE REVIEWS ARE LESS NECESSARY WITH WORK TEAMS BECAUSE MEMBERS ARE VERY CAREFULLY SELECTED FLEXIBLE WORK OPTIONS ARE FOR THE PRIVILEGED FEW WORK/FAMILY DIRECTIONS FINDS SOME 85 OF COMPANIES BOAST THAT THEY OFFER JOBSHARING TELECOMMUTING AND OTHER FAMILYFRIENDLY CHOICES BUT FEWER THAN HALF HAVE WRITTEN POLICIES ON THEM AND MANAGERS GENERALLY RETAIN GREAT DISCRETION OVER WHO CAN EXERCISE THEM MANY WORKERS STILL FEAR THAT SEEKING AN ALTERNATIVE ARRANGEMENT WILL HURT THEIR CAREERS THE CONSULTING FIRM ADDS WRONG TARGET PRESIDENT CLINTON HAS PROPOSED A BIG INCREASE IN TARGETED ASSISTANCE TO HELP DISPLACED DEFENSE WORKERS BUT UNEMPLOYMENTCOMPENSATION RECORDS SUGGEST THEY AREN'T HAVING ANY MORE TROUBLE FINDING NEW JOBS THAN OTHERS CAUGHT IN MASS LAYOFFS THE CONGRESSIONAL BUDGET OFFICE REPORTS MINE SAFETY CHIEF THE PRESIDENT CHOOSES J DAVITT MCATEER EXECUTIVE DIRECTOR OF THE OCCUPATIONAL SAFETY AND HEALTH LAW CENTER IN SHEPHERDSTOWN WVA TO BE ASSISTANT SECRETARY OF LABOR FOR MINE SAFETY AND HEALTH AN ATTORNEY HE WORKED WITH THE UNITED MINE WORKERS IN THE MID1970S COMPUTER MODELS HELP ANSWER THE QUESTION CAN YOU AFFORD RETIREMENT THE PROGRAMS DEVELOPED BY BENEFIT CONSULTANTS SUCH AS WILLIAM M MERCER INC AND FOSTER HIGGINS CAN PROVIDE WORKERS PERSONALIZED PROJECTIONS SHOWING HOW CLOSE SOCIAL SECURITY THEIR PENSIONS 401K PLANS AND OTHER SAVINGS COME TO MEETING RETIREMENTINCOME NEEDS GIVEN THE INDIVIDUALS' SAVINGS RATES AND INVESTMENT STRATEGIES SO FAR ONLY A FEW COMPANIES HAVE BOUGHT THE PROGRAMS AS BUGS ARE STILL BEING WORKED OUT THE FINDINGS CAN BE CHASTENING ONE FOSTER HIGGINS CLIENT A TEXAS RETAIL CHAIN FOUND THAT ONETHIRD OF ITS WORKERS AGE 50 TO 55 WOULDN'T BE ABLE TO RETIRE AT THEIR CURRENT STANDARD OF LIVING EVEN BY AGE 70 MERCER'S MARY RIEBOLD SAYS SOCIAL SECURITY WILL COVER ONLY ABOUT 45 OF THE NEEDS OF MARRIED WORKERS EARNING 50000 EVEN WITH A PENSION SUCH WORKERS WILL HAVE TO TAKE FULL ADVANTAGE OF A 401K PLAN TO RETIRE BEFORE 70 SHE SAYS IF THEY LACK RETIREE MEDICAL PLANS THEY SHOULD SAVE AN EXTRA YEAR'S SALARY BY AGE 60 BECAUSE WOMEN LIVE LONGER A WOMAN WHO EARNS 50000 ANNUALLY BUT LACKS A PENSION WILL NEED ON AVERAGE TO SAVE AN EXTRA 3 OF PAY EVERY YEAR AFTER AGE 45 IN ORDER TO RETIRE AT 65 THE CHECKOFF WHAT WAS SECOND BEST THE NEWSLETTER EXECUNET SAYS SOME EXECUTIVES CLAIM THE OPPORTUNITY TO GET OUT AND NETWORK HAS BEEN THE BEST ASPECT OF THEIR JOB SEARCH THE PRESIDENT OF THE COMMUNICATIONS WORKERS UNION MORTON BAHR CHASTISES THE WHITE HOUSE AFTER HE SPOTS WORKERS INSTALLING FRENCHMADE TELEPHONE CABLE THERE 9309070053 930907 INTERNATIONAL NIPPON CREDIT SET TO WRITE OFF LOANS OF 192 BILLION NAME BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NIPPON CREDIT BANK LTD SAID IT WILL WRITE OFF ABOUT 200 BILLION YEN 192 BILLION IN BAD LOANS OVER A THREEYEAR PERIOD ENDING IN MARCH 1996 ONE OF THE LARGEST WRITEOFFS TO DATE IN JAPAN'S DEEP BANKING CRISIS THE BANK HAD REPORTED HOLDING NEARLY 600 BILLION YEN IN TROUBLED LOANS EARLIER THIS YEAR SAID AKIHIKO TAKEUCHI AN ADVISER TO THE BANK'S BOARD THE BANK EXPECTS TO RECOVER THE REMAINING 400 BILLION YEN BY RECEIVING PAYMENT FROM THE BORROWERS OR DISPOSING OF COLLATERAL ON THE LOANS HE SAID MR TAKEUCHI SAID NIPPON CREDIT BANK HAD SET ASIDE ABOUT 70 BILLION YEN IN RESERVES FOR THE WRITEOFF AS OF THE END OF MARCH THE BANK WILL SELL STOCK HOLDINGS AND USE ITS OPERATING EARNINGS TO COVER THE REST OF THE WRITEOFF HE SAID NIPPON CREDIT'S HUGE WRITEOFF IS PART OF THE RESTRUCTURING IN JAPAN'S BANKING INDUSTRY SAID CRAIG CHUDLER STRATEGIST AT UBS SECURITIES IN TOKYO ALL BANKS ARE WRITING OFF BAD LOANS HE SAID IN JANUARY SUMITOMO BANK LTD SAID IT WOULD WRITE OFF 100 BILLION YEN IN BAD LOANS TO AN OSAKA REALESTATE COMPANY SOME ANALYSTS SAY IT MIGHT TAKE THE INDUSTRY AS LONG AS 10 YEARS TO CLEAN UP THE MISTAKES OF THE LATE 1980S WHEN BANKS LENT MONEY HANDOVERFIST TO HIGHFLYING PROPERTY COMPANIES MANY OF WHICH PUT THE MONEY INTO SPECULATIVE REALESTATE DEALS REALESTATE PRICES HAVE COLLAPSED FROM THEIR PEAK LEVELS OF SEVERAL YEARS AGO LEAVING MANY BORROWERS UNABLE TO REPAY LOANS THE BANKING INDUSTRY REFUSED FOR SOME TIME TO ACKNOWLEDGE THE EXTENT OF ITS BADLOAN PROBLEM BUT THIS YEAR IT HAS BEGUN DISCLOSING MORE OF ITS WOES THIS SPRING JAPAN'S 11 GIANT CITY BANKS ACKNOWLEDGED HAVING 843 TRILLION YEN IN NONPERFORMING LOANS ON WHICH NO INTEREST HAD BEEN PAID FOR MORE THAN SIX MONTHS THE TROUBLED LOANS OF NIPPON CREDIT BANK WHICH IS CLASSIFIED AS A LONGTERM CREDIT BANK ARE NOT COUNTED IN THAT TOTAL 9309070052 930907 LEISURE & ARTS CIMRMAN MYTH A GREAT CZECH COMES ALIVE ONSTAGE BY SHAILAGH MURRAY PRAGUE JARA CIMRMAN WAS A CONSUMMATE GENIUS THE 19THCENTURY PIONEER OF EVERYTHING FROM YOGURT TO JAZZ WITHOUT HIM THERE'D BE NO THEORY OF RELATIVITY NO PLASTIC SURGERY AND NO BICYCLES NO LIGHT BULBS EITHER THOMAS EDISON BOTCHED THE EXPERIMENT AND CALLED IN HIS CZECH FRIEND TO SET THINGS RIGHT OMEGA OF SWITZERLAND HIRED CIMRMAN PRONOUNCED ZIMMERMAN TO IMPROVE ITS WATCHES AND MARIE CURIE TOOK HIM ON AS AN ASSISTANT HE SUGGESTED THE BUILDING OF THE PANAMA CANAL FORMED A PUPPET THEATER IN PARAGUAY AND ESTABLISHED A GROUP OF MALE MIDWIVES IN THE ALPS THE YEARS HE WANDERED CENTRAL EUROPE AS A DENTIST PROVIDED INSPIRATION FOR HIS VOLUMINOUS WRITINGS PEOPLE OPENED THEIR MOUTHS TO ME AND TOLD OF ALL THEIR TROUBLES HE ONCE SAID WITHOUT A DOUBT JARA CIMRMAN WAS THE GREATEST CZECH WHO NEVER LIVED HE IS THE BRAINCHILD OF ZDENEK SVERAK AND LADISLAV SMOLJAK TWO PRAGUE WITS WHO DEVELOPED THE CHARACTER FROM RADIO SKETCHES INTO PLAYS BOOKS AND MOVIES FILLED WITH KNIFELIKE HUMOR AS ADDICTIVE AS THAT OF MONTY PYTHON'S FLYING CIRCUS BUT IN ITS JABS AT 19THCENTURY PROVINCIALISM AND THE CULT OF STALINISM THE CIMRMAN CORPUS IS PROVING TO BE ONE OF THE MOST ENDURING LEGACIES OF THE CZECH COMMUNIST ERA AT A TIME WHEN MOST PRAGUE THEATERS ARE LOSING THEIR AUDIENCES TO VIDEOCASSETTE RECORDERS THE 11 PLAYS OF THE JARA CIMRMAN THEATER DRAW PACKED HOUSES EVERY NIGHT IN THE CAPITAL AND IN CITIES ACROSS THE COUNTRY CHILDREN MEMORIZE CIMRMAN RECORDS AND ENTIRE FAMILIES SEE THE SAME PLAY OR MOVIE A DOZEN TIMES A FRIEND ONCE TOLD ME THAT WE TOUCH SOMETHING IN EVERY CZECH SOUL SAYS MR SMOLJAK SO SEAMLESS WAS THE SATIRE THAT MANY LISTENERS BELIEVED THERE WAS A PLACE WHERE LOUIS ARMSTRONG POPPED IN ON HIS WAY TO COMMUNIST PARTY BALLS AND A COTERIE OF REGULARS ACTED OUT CLICHES SUCH AS DON'T THROW OUT THE BABY WITH THE BATH WATER PERHAPS THE SPLASHES AND INFANT CRIES SOUNDED TOO AUTHENTIC MR SVERAK GOT CALLS FROM AGRICULTURALCOOPERATIVE OFFICIALS WANTING TO VISIT THE TAVERN I TOLD THEM WE WERE BOOKED FOR TWO YEARS HE SAYS LAUGHING I THINK THEY BELIEVED THAT TOO IN 1967 HE AND MR SMOLJAK DECIDED TO TAKE THE CIMRMAN CHARACTER ALREADY INTRODUCED ON THE RADIO SHOW TO THE STAGE THE TRICK WAS TO ADVANCE THE MYTH THROUGH PLAYS SUPPOSEDLY WRITTEN BY THE LOST GENIUS BUT BY OPENING NIGHT THE DUO HAD PRODUCED ONLY ONE SHORT PLAY TO PAD THE PROGRAM THEY BEGAN WITH A LECTURE DEVOTED TO TALES FROM CIMRMAN'S LIFE THE PLAY ITSELF WAS HILARIOUS A ONEACT COMEDY ABOUT THREE BROTHERS WHO ARE GIVEN UP FOR ADOPTION AND REUNITED AS ADULTS WHEN THEY HAPPEN TO SHOW UP TOGETHER AT THEIR PARENTS' COTTAGE BUT THE LECTURE WITH ITS DEADPAN DEMONSTRATIONS OF CIMRMAN'S ELECTRIC CHAIR A BENCH WITH A HOT PLATE AND HIS WASHING MACHINE A BUCKET OF WATER ON A VIBRATING STOOL STOLE THE SHOW WITH EACH PLAY AND LECTURE SERIES THE CIMRMAN CHARACTER ACQUIRED NEW DIMENSIONS THE ODDITIES OF HIS LIFE BEGAN WITH HIS BIRTH WHICH WAS SOMETIME BETWEEN 1853 AND 1874 IN VIENNA NO ONE KNOWS FOR SURE BECAUSE THE CLERK WAS SO DRUNK THAT THE RECORDS ARE ILLEGIBLE HE HIMSELF WAS FOR A LONG TIME UNSURE OF HIS GENDER BECAUSE HIS PARENTS DRESSED HIM IN HIS SISTERS' HANDMEDOWNS UNTIL WELL BEYOND PUBERTY AS FOR HIS DEATH CIMRMAN SEEMS TO HAVE VANISHED DURING WORLD WAR I LEAVING NOTHING BUT A SINGLE RAIN BOOT AND EIGHT LINES OF GRAFFITI IN A NORTH BOHEMIAN PUB HE FORMED A PHILOSOPHY OF LIFE CALLED EXTERNALISM WHICH IS BASED ON THE PREMISE THE WORLD EXISTS BUT I DON'T CAMERAS FOLLOWED HIM EVERYWHERE BUT IN THE MANY PHOTOGRAPHS IN THE THEATER'S ARCHIVES HE'S EITHER LOST IN A CROWD OR CAUGHT WITH HIS BACK TURNED THERE IS A BUST OF HIM BUT A HAT MAKER USED IT TO FIT FEDORAS AND EVENTUALLY RUBBED OUT HIS FEATURES WHAT AUDIENCES LOVE MOST IS HIS RIDICULOUS BAD LUCK DESTINED FOR OBSCURITY CIMRMAN'S GLORY FOREVER WENT TO SOMEONE ELSE AFTER CONSULTING WITH HIM FRENCH ENGINEER GUSTAVE EIFFEL STRETCHED THE LEGS OF THE MONUMENT FAR APART GIVING THE STRUCTURE ITS MOST DISTINCTIVE FEATURE NO ONE CALLS IT THE CIMRMAN TOWER THOUGH STATE CENSORS NEVER KNEW QUITE WHAT TO THINK ABOUT THE CIMRMAN THEATER THEY BANNED IT AT ONE POINT IN THE EARLY 1970S BUT THE CAST MOVED ELSEWHERE AND CONTINUED PERFORMING BUT BECAUSE CIMRMAN WAS A FIGURE FROM ANOTHER ERA THE AUSTROHUNGARIAN EMPIRE AND AN ANTIMONARCHIST TO BOOT THERE WAS LITTLE FOR COMMUNISTS TO COMPLAIN ABOUT ONE OF THE THREE CIMRMAN MOVIES DATED 1986 IS A SPOOF OF THE THEATER GROUP'S RUNINS WITH PARTY OFFICIALS BUT EVEN IT EMERGED FROM THE MINISTRY OF CULTURE WITH ITS HUMOR INTACT THE COMMUNISTS ACTUALLY LIKED THE MOVIE SAYS MR SVERAK STILL AMAZED AT THE RECEPTION MAYBE IT WAS GORBACHEV BUT ALL OF A SUDDEN EVERYONE WAS FOR PROGRESS AT THE HEART OF THE CIMRMAN HUMOR AND ITS POLITICAL OVERTONES IS A 1950S OBSESSION WITH THE ACCOMPLISHMENTS OF CZECH AND SOVIET COMMUNIST LEADERS BOTH AUTHORS WERE FORCEFED THE STUFF DURING THEIR UNIVERSITY YEARS BUT THE MYTH ALSO PARODIES THE LATE19THCENTURY FASCINATION WITH INDUSTRIAL PROGRESS AND THE BELIEF THAT WITH EVERY NEW INVENTION THE WORLD WOULD BECOME A BETTER PLACE THAT MEANS A LOT TODAY WHEN WE'RE AFRAID OF WHAT TECHNOLOGY WILL DO TO US SAYS MR SMOLJAK THEN THERE'S WHAT MR SVERAK CALLS THE SMALLEUROPEANNATION SYNDROME CENTRAL EUROPE ONCE TEEMED WITH PEOPLE LIKE CIMRMAN WHO WOULD DO ANYTHING TO MAKE THEIR COUNTRY FAMOUS HE SAYS DEVOTEE KATERINA MACAKOVA A 21YEAROLD STUDENT MEMORIZED RECORDINGS OF THE PLAYS WHILE GROWING UP IN A SOUTH BOHEMIAN VILLAGE AND CAN RECITE A SLEW OF CIMRMANISMS SHE SEES HIM AS A BUMBLING PATRIOT THE ARCHETYPAL 19THCENTURY CENTRAL EUROPEAN WHO LOVES HIS COUNTRY BUT ISN'T SURE WHERE ITS BORDERS ARE IN THE US YOU SEE TSHIRTS SAYING I'M PROUD TO BE AN AMERICAN' BUT HERE WE WERE ALWAYS LOOKING TO SOMEONE ELSE SAYS MS MACAKOVA BUT THAT'S WHAT'S SO FUNNY ABOUT CIMRMAN HE MADE CZECHS OUT TO BE THE GREAT LEADERS OF THE WORLD THERE IS A CERTAIN POIGNANCY TO THE THEATER'S BALLOONING POPULARITY THE CAST ALWAYS MADE UP OF AMATEURS CAN NOW PERFORM FREELY AND EVEN PROFIT FROM IT BUT GONE IS THE THRILL OF PUTTING ONE OVER ON PARTY HACKS MESSRS SVERAK AND SMOLJAK FEEL A CERTAIN PANG WHEN THEY LOOK OUT FROM THE STAGE THESE DAYS AND SEE STRANGERS INSTEAD OF THE FACES OF FOLLOWERS AFTER SO MANY YEARS THE TROUPE HAS BECOME A FAMILY BOUND BY ENDLESS TRIALS AND LOSING MEMBERS ONLY TO THE GRAVE AND THE WEST IT IS A CONNECTION TO THE PAST FOR ME SAYS LADISLAVA PETISKOVA WHOSE HUSBAND ACTED WITH THE GROUP BEFORE HIS DEATH IN 1980 WHEN I SEE THEM ONSTAGE I SEE YOUNG MEN I SEE MY HUSBAND MS PETISKOVA SAYS I HAVE TO REMIND MYSELF THAT THEY ARE GROWN AND THAT MY HUSBAND HAS BEEN DEAD FOR 13 YEARS MR SVERAK IS 57 AND MR SMOLJAK IS 61 AND WHILE NEITHER CAN IMAGINE RETIRING THEY BOTH WORRY BECAUSE THERE'S NO ONE READY TO CARRY ON WHEN THEY DO DECIDE TO QUIT THEN AGAIN THEY GET IRRITATED WHEN COLLEGE STUDENTS STAGE THE PLAYS WE'RE HAPPY THEY LIKE THE HUMOR BUT THE THEATER IS TOO CONNECTED TO OUR OWN INTERPRETATION SAYS MR SVERAK BESIDES THE CIMRMAN THEATER THE TWO ARE WELLKNOWN FOR THEIR FILM SCRIPTS AND DIRECTING TALENTS BUT EVEN THE HEADY WORLD OF BIGDEAL MOVIE CONTRACTS A REALM BOTH MEN ARE NOW MOVING INTO DOESN'T SEEM AS DAUNTING AS THEIR CURRENT PROJECT WRITING THE 12TH CIMRMAN PLAY AND THE FIRST SINCE 1989 I'M ABSOLUTELY TERRIFIED THAT IT WON'T BE ANY GOOD SAYS MR SVERAK SHUDDERING IT WORRIES ME CONSTANTLY WHAT IF I'VE LOST MY INSPIRATION 9309070051 930907 BUSINESS BRIEF OLYMPUS OPTICAL CO FORECASTS ARE CUT SHARPLY FOR FISCAL FIRST HALF YEAR JAPAN'S OLYMPUS OPTICAL CO CUT ITS FORECAST OF PARENT PRETAX PROFIT BY 37 FOR ITS FISCAL FIRST HALF ENDING SEPT 31 CITING THE YEN'S STRENGTH AND WEAK DEMAND THE CAMERA AND LENS MAKER SAID IT EXPECTS PRETAX PROFIT OF 32 BILLION YEN 302 MILLION FOR THE HALF DOWN FROM 51 BILLION YEN FORECAST EARLIER SALES OF 89 BILLION YEN ARE EXPECTED DOWN 82 FROM EARLIER ESTIMATES IN THE YEAREARLIER HALF OLYMPUS POSTED PRETAX PROFIT OF 422 BILLION YEN ON SALES OF 9486 BILLION YEN THE COMPANY ALSO SAID IT CUT ITS FORECASTS FOR THE FISCAL YEAR WHICH ENDS MARCH 31 1994 ON A PARENT BASIS PRETAX PROFIT OF FIVE BILLION YEN IS FORECAST WHICH IS 57 LOWER THAN THE EARLIER FORECAST AND REPRESENTS A 47 DECLINE FROM YEAREARLIER PRETAX PROFIT OF 936 BILLION YEN ON A CONSOLIDATED BASIS OLYMPUS SAID IT EXPECTS NO PRETAX PROFIT FOR THE FISCAL YEAR IT EARLIER FORECAST CONSOLIDATED PRETAX PROFIT OF 12 BILLION YEN IN THE YEAREARLIER PERIOD THE COMPANY POSTED CONSOLIDATED PRETAX PROFIT OF 1045 BILLION YEN 9309070050 930907 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED ONE NEW LISTING WHILE THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED TWO NEW LISTINGS INCLUDING ONE INITIAL PUBLIC OFFERING THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS INCLUDING AN INITIAL OFFERING THE BIG BOARD BEGAN TRADING SHARES IN US FILTER CORP PALM DESERT CALIF A DESIGNER AND MAKER OF FILTRATION AND PURIFICATION SYSTEMS UNDER USF THE COMPANY PREVIOUSLY TRADED ON THE AMEX THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ADDED ONE INITIAL OFFERING RIVER OAKS FURNITURE INC FULTON MISS A DESIGNER AND MAKER OF UPHOLSTERED HOMES UNDER OAKS ONE ISSUE MOVED FROM THE NASDAQ SMALLCAP MARKET TO THE NATIONAL MARKET SYSTEM TARO VIT INDUSTRIES LTD HAIFA BAY ISRAEL A PHARMACEUTICAL CONCERN UNDER TAROF THE AMEX BEGAN TRADING MIDATLANTIC REALTY TRUST LINTHICUM MD A REALTY CONCERN UNDER MRR AS AN INITIAL OFFERING AND GOLDEN STAR RESOURCES LTD DENVER A MINING AND EXPLORATION COMPANY UNDER GSR THE AMEX BEGAN TRADING OPTIONS ON HERBALIFE INTERNATIONAL INC AND MFS COMMUNICATIONS CO THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON MFS COMMUNICATIONS CO AND ARGOSY GAMING CO THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON ARGOSY GAMING CO AND SONAT OFFSHORE DRILLING THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS ON MFS COMMUNICATIONS CO AND WILL START TRADING OPTIONS ON ALLSTATE CORP 9309070049 930907 BUSINESS BRIEF BRITISH GAS PLC REGULATOR CALLS FOR FENCE' AROUND FOREIGN OPERATIONS A BRITISH GOVERNMENT REGULATOR HAS PROPOSED THAT BRITISH GAS PLC'S GROWING OVERSEAS OPERATIONS BE RING FENCED FROM ITS MONOPOLY DOMESTIC BUSINESS SUCH A LEGAL BARRIER WOULD PROTECT CUSTOMERS IN THE UNITED KINGDOM FROM ANY BRITISH GAS LOSSES ABROAD WHERE ITS ACTIVITIES CARRY A HIGHER RISK THAN IN BRITAIN GREG MCGREGOR DIRECTOR OF COMPETITION AND TARIFFS FOR THE OFFICE OF GAS SUPPLY SAID THAT DOMESTIC CUSTOMERS SHOULD NOT BE FACED WITH HIGHER PRICES SIMPLY BECAUSE OF SOME OVERSEAS VENTURE THAT HAS GONE SOUR MR MCGREGOR SAID HIS OFFICE HAS BEGUN INFORMAL DISCUSSIONS ON THE SUBJECT WITH BRITISH GAS OFFICIALS BUT A SPOKESWOMAN FOR THE COMPANY SAID THE OFFICE HAS NOT HAD ANY DISCUSSIONS WITH BRITISH GAS WHATSOEVER IN 1992 BRITISH GAS REGISTERED 137 MILLION 2058 MILLION IN OPERATING PROFIT FROM SUPPLYING OVERSEAS GAS UP 10 FROM 1991'S 125 MILLION 9309070048 930907 MIM SELLS EVANS DEAKIN SHARES BRISBANE AUSTRALIA MI M HOLDINGS LTD AN AUSTRALIAN METALS PRODUCER SAID IT HAS SOLD 62 MILLION SHARES OF EVANS DEAKIN INDUSTRIES LTD A HEAVY ENGINEERING FIRM THE PRICE WASN'T DISCLOSED THE SHARES REPRESENT 124 OF EVANS DEAKIN'S TOTAL ISSUED CAPITAL COLLIN MYERS A SPOKESMAN FOR MI M SAID THE SHARES WERE SOLD FRIDAY DURING WHICH EVANS DEAKIN'S SHARE PRICE RANGED BETWEEN 251 AUSTRALIAN DOLLARS US165 AND A258 THEY CLOSED STEADY AT A255 YESTERDAY 9309070047 930907 HEARD ON THE STREET AS ITS BORROWING EXPENSES GROW IBM PLANS NEW MEASURES TO RAISE SAVE CASH BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL IT WASN'T VERY LONG AGO THAT INTERNATIONAL BUSINESS MACHINES COULD TAP THE PUBLIC MARKETS AT WILL NOW AS ITS STOCK HAS RECOVERED FROM A LOW THE COMPUTER GIANT IS SHYING AWAY FROM PUBLIC OFFERINGS AND INSTEAD PLANS TO RAISE ABOUT 3 BILLION THROUGH A SERIES OF NOVEL FINANCING PROGRAMS THESE QUICKFIX MOVES LIKELY TO BE THE FIRST OF MANY SUCH FINANCING MEASURES AT IBM ARE INTENDED TO BOLSTER THE COMPANY'S SAGGING BALANCE SHEET AND CONSERVE BADLY NEEDED CASH THERE'S CERTAINLY NO DANGER OF IBM'S BEING UNABLE TO PAY THE RENT BUT TO MEET ONETIME DEMANDS FROM DEPARTING WORKERS IBM FINDS ITSELF IN THE REMARKABLE POSITION OF HUNTING FOR EXTRA CASH TO THE STREET SUCH MOVES ARE A MIXED BLESSING THE STOCK HAS BOUNCED UP TO 45 3/4 FROM A LOW OF 40 5/8 AS BARGAINHUNTERS CONCLUDED THE WORST IS OVER AND ANALYSTS TEND TO APPLAUD FINANCIAL HOUSECLEANINGS AT OLDLINE COMPANIES YET SOME INVESTORS BLANCH AT THE THOUGHT OF A CORPORATE BEHEMOTH SCRAMBLING FOR FUNDS TO PAY CASH SETTLEMENTS TO DEPARTING EMPLOYEES IBM ALREADY HAS PILED ON SHORTTERM DEBT ISSUED PREFERRED STOCK AND LOADED ON MORE LONGTERM DEBT RAISING 35 BILLION OR SO SINCE YEAREND MUCH OF THAT MONEY IS EARMARKED TO FUND THE EXODUS OF SOME 25000 EMPLOYEES TO DATE YET THE FLOOD OF DEPARTURES IS EVEN GREATER THAN IBM PLANNED INCREASING THE PRESSURE FOR CASH THE COMPANY HAS HAD TO COPE WITH AN ADDITIONAL 25000 UNEXPECTED DEPARTURES AS EMPLOYEES RUSHED TO SEIZE GENEROUS BENEFITS BEFORE THEY WERE CURTAILED IN JUNE ON TOP OF THAT THE COMPANY WILL SHED 35000 MORE WORKERS BY THE END OF 1994 TO MEET THESE EMPLOYEE OBLIGATIONS IBM WILL HAVE TO COME UP WITH AN ADDITIONAL 46 BILLION OVER THE NEXT 16 MONTHS ACCORDING TO THE COMPANY'S SECONDQUARTER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION THEY DON'T HAVE ANY CHOICE SAYS NICHOLAS RICCIO A MANAGING DIRECTOR AT STANDARD & POOR'S THEY MUST BE CONCERNED THAT THEY CANNOT PLACE SECURITIES WITH THE EFFECTIVENESS THAT THEY COULD IN THE PAST SELLING DEBT SECURITIES NATURALLY WOULD BE MORE EXPENSIVE NOW AFTER S&P DOWNGRADED IBM'S SENIOR DEBT TO SINGLEA ON JULY 27 IBM WAS A TRIPLEA CREDIT AS RECENTLY AS JANUARY ISSUING MORE STOCK DIRECTLY TO THE PUBLIC COULD BE COSTLY TOO POTENTIALLY DAMPING THE STOCK'S RALLY A SOLUTION OUTLINED BY JEROME B YORK IBM'S NEW SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN A JULY 27 CONFERENCE WITH ANALYSTS IS INTENDED TO RAISE CASH CHEAPLY AND CONSERVE IT WHEREVER POSSIBLE IBM HAS BEEN MONITORING CASH MORE CLOSELY EVER SINCE A 1991 RESTRUCTURING THAT SPLIT THE COMPANY INTO 13 BUSINESS LINES BUT THE FOCUS HAS INTENSIFIED UNDER CHIEF EXECUTIVE OFFICER LOUIS GERSTNER AND MR YORK WHO ARRIVED IN MAY THIS MANAGEMENT IS HUNG UP ON THE CRITICALITY OF CASH SAYS MERRILL LYNCH ANALYST DANIEL MANDRESH WHO HAS BEEN FOLLOWING THE COMPANY SINCE 1967 THESE ARE SOUND FINANCIAL MOVES THE STEPS ECHO IN LARGE PART A STRATEGY THAT MR YORK SUCCESSFULLY IMPLEMENTED AS CHIEF FINANCIAL OFFICER OF CHRYSLER IBM HAS ALREADY CUT ITS DIVIDEND TO 25 CENTS FROM 54 CENTS A QUARTER NOW IT WILL STEP UP THE PACE OF SECURITIZING ITS RECEIVABLES SELLING 1 BILLION OF ITS UNCOLLECTED BILLS IN THE FORM OF A TRIPLEARATED SECURITY IT ALSO WILL ISSUE NEW STOCK FOR THE EMPLOYEE PURCHASE PLAN RATHER THAN BUYING ON THE OPEN MARKET AND WILL CONTRIBUTE STOCK TO THE PENSION FUND INSTEAD OF CASH THESE SHARE ISSUANCES COMBINED WILL ADD MORE THAN 1 BILLION TO IBM'S SHRUNKEN EQUITY DONATING SHARES IN LIEU OF CASH IS AN INCREASINGLY POPULAR WAY FOR STRUGGLING COMPANIES TO MEET OBLIGATIONS TO RETIREES IN THE EARLY 1980S DOZENS OF COMPANIES INCLUDING ALUMINUM CO OF AMERICA AND WHEELINGPITTSBURGH STEEL CONTRIBUTED STOCK INSTEAD OF CASH ALCOA SOON BOUGHT ITS SHARES BACK GIVING THE PENSION FUND A PROFIT MORE RECENTLY CHRYSLER GAVE ITS PENSION FUND STOCK VALUED AT ABOUT 300 MILLION IN SEPTEMBER 1991 THE STOCK HAS SINCE RISEN SHARPLY GENERAL MOTORS ECHOED THAT MOVE THE FOLLOWING YEAR WITH A 500 MILLION STOCK CONTRIBUTION TO RETIREES ALL THINGS BEING EQUAL IT'S MORE RISKY FOR THE PENSION FUND TO GET STOCK INTEAD OF CASH THAT CAN BE PUT INTO A VARIETY OF ASSETS SAYS ROBERT SPREMULLI AN INVESTMENT OFFICER WITH THE COLLEGE RETIREMENT EQUITIES FUND WHICH OWNS 53 MILLION IBM SHARES IN AN INDEX FUND FOR EXAMPLE IN OCTOBER 1991 WESTINGHOUSE ELECTRIC MADE A 375 MILLION CONTRIBUTION OF STOCK TO ITS PENSION FUND AT THE TIME THE STOCK WAS SELLING FOR ABOUT 16 1/2 THE SHARES SINCE HAVE SLIPPED TO 15 1/4 THE PENSION FUND HAS BORNE THE BRUNT OF THAT LOSS OF VALUE SINCE THE SHARES WEREN'T REGISTERED FOR SALE UNTIL RECENTLY WHENEVER SUCH A BLOCK IS DONATED TO A PENSION PLAN IT TIES THE PENSIONERS CLOSELY TO THE FORTUNES OF ONE COMPANY A COMPANY THAT HAS BECOME A RISKIER STOCK SAYS MR SPREMULLI IBM REGISTERED 65 MILLION SHARES LATE LAST MONTH VALUED AT NEARLY 300 MILLION TO CONTRIBUTE TO THE PENSION FUND THIS YEAR THE HANDFUL OF INVESTMENT MANAGERS TO WHOM THE COMPANY WILL DISTRIBUTE THIS STOCK WILL HAVE THE CHOICE OF KEEPING THE SHARES OR SELLING THEM IBM WHICH LAST CONTRIBUTED TO THE PENSION FUND IN 1987 THE PLAN IS OVERFUNDED PLANS EVENTUALLY TO CONTRIBUTE AS MANY AS 15 MILLION SHARES MAKING THE PENSION FUND IBM'S LARGEST SHAREHOLDER IBM NOW HAS ROUGHLY 570 MILLION SHARES OUTSTANDING IBM'S OBLIGATION TO RETIREES HAS GROWN BECAUSE THE COMPANY CHANGED ONE OF THE INTEREST RATES IT USES TO CALCULATE ITS PLAN'S LIABILITIES THE PLAN STILL IS OVERFUNDED BUT IBM FELT IT HAD TO RESUME CONTRIBUTING TO THE PLAN TO STAY AT THE APPROPRIATE LEVEL OF FUNDING A SPOKESMAN SAID PEACE PRIZE PEACE WAS GOOD LAST WEEK FOR FIRST ISRAEL FUND A CLOSEDEND FUND INVESTING IN ISRAELI COMPANIES AS ISRAEL APPEARED TO BE CLOSE TO A BREAKTHROUGH WITH THE PALESTINE LIBERATION ORGANIZATION AND JORDAN ENTHUSIASTIC INVESTORS BID UP THE SHARES OF THE FUND WHICH TRADES ON THE BIG BOARD TO 15 FROM 13 A WEEK EARLIER BUT AT LEAST ONE FUND INVESTOR WAS SELLING ON GOOD NEWS THOMAS J HERZFELD OF THOMAS J HERZFELD ADVISORS INC SOLD OFF SHARES OF THE FUND AS IT ROSE THE RUNUP REMINDED HIM OF THE SHARP INCREASE IN GERMANY FUND SHARES WHEN THE BERLIN WALL FELL IN 1989 AND THEIR STEEP DECLINE ONCE THE EUPHORIA FELL OFF UNLIKE OPENEND FUNDS CLOSEDEND FUND SHARES CAN DEVIATE IN PRICE FROM THE UNDERLYING NET ASSET VALUE OF THE PORTFOLIOS BECAUSE THE FUND SHARES ARE PUBLICLY TRADED MAKING AT TIMES FOR EXAGGERATED SWINGS IN VALUE WE BUY WARS EARTHQUAKES COUPS ASSASSINATIONS AND DEVALUATIONS MR HERZFELD SAYS WE SELL ON PEACE FREETRADE AGREEMENTS AND ALL THAT OTHER GOOD STUFF 9309070046 930907 MARKETING & MEDIA EW SCRIPPS VENTURE CINCINNATI EW SCRIPPS CO SAID IT WILL START UP A PRODUCTION COMPANY THAT WILL BOTH CREATE AND ACQUIRE PROGRAMS FOR ITS NETWORK AND CABLE TELEVISION STATIONS LAST MONTH THE COMPANY SAID IT WOULD LAUNCH THE HOME & GARDEN TELEVISION NETWORK A CABLE OPERATION FEATURING HOME REPAIR REMODELING GARDENING DECORATING AND HOME ELECTRONICS IN THE FALL OF 1994 SCRIPPS HAS HIRED A FORMER CBS NEWS VICE PRESIDENT DAVID PERCELAY TO BE PRESIDENT OF THE LOS ANGELESBASED UNIT TO BE KNOWN AS SCRIPPS HOWARD PRODUCTIONS IT ALSO NAMED FORMER SENIOR NBC PROGRAMMING EXECUTIVE MICHELE BRUSTIN AS EXECUTIVE PRODUCER 9309070045 930907 WHAT'S NEWS BUSINESS AND FINANCE THE CLINTON HEALTH PLAN THAT IS TAKING SHAPE DOESN'T INCLUDE A BROAD TAX RISE BUT CONTAINS STRICT SPENDING CAPS ON MEDICARE AND MEDICAID A FAR MORE PALATABLE MIX TO THE GOP THAN SOME MEASURES CONSIDERED EARLIER INCLUDING A NEW PAYROLL TAX BUT MANY REPUBLICAN LEGISLATORS ALREADY ARE VOWING TO FIGHT THE PLAN TOP CLINTON ADVISERS ARE LOOKING FOR WAYS TO STIMULATE THE ECONOMY WITHOUT WIDENING THE DEFICIT AMID A RECOVERY THAT IS SHAKIER THAN HOPED EMPLOYERS CUT 39000 JOBS IN AUGUST BUT THE UNEMPLOYMENT RATE DECLINED TO 67 FROM 68 IN JULY RENAULT AND VOLVO UNVEILED THEIR LONGAWAITED MERGER PLAN WHICH COULD CREATE A CAR COMPANY BETTER POSITIONED TO SURVIVE IN EUROPE'S INCREASINGLY COMPETITIVE CAR MARKET LONGTERM BOND YIELDS WILL DROP A BIT FURTHER AFTER FALLING BELOW 6 FRIDAY AND THEN A CORRECTION WILL PUSH YIELDS BACK UP SOME TRADERS SAID ON FRIDAY THE PRICE OF THE TREASURY BENCHMARK 30YEAR ISSUE ROSE 1 3/8 POINTS ITS YIELD FELL TO 594 ON LABOR DATA SHOWING UNEXPECTED WEAKNESS TEXACO SHOULD PAY 4042 MILLION TO GOLD STANDARD IN A DISPUTE OVER OWNERSHIP OF A GOLD MINE THAT TEXACO BRIEFLY OWNED A UTAH STATE JURY FOUND VEHICLE SALES APPEAR POISED TO KEEP LEADING THE ECONOMIC RECOVERY THIS MONTH DESPITE A LACKLUSTER AUGUST GENERAL MOTORS' SALES ROSE MODERATELY BUT THE FIGURES AMOUNTED TO JUST 298 OF THE MARKET THE FIRST TIME IN DECADES GM'S SHARE FELL BELOW 30 MAZDA'S BASE PRICE ON CERTAIN 1994 SEDANS WON'T CHANGE FROM THE CURRENT LEVEL AMID STALLED US SALES MOST OTHER NEW MODELS WILL BE PRICED JUST 18 TO 44 HIGHER MAZDA SAID DUPONT MUST PAY 10650000 IN A LAWSUIT BROUGHT BY 23 PLAINTIFFS WHO ALLEGED THAT DUPONT'S BENLATE FUNGICIDE DAMAGED CROPS A FEDERAL JURY SAID THE CASE IS THE FIRST OF MORE THAN 400 BENLATE SUITS TO BE DECIDED BY A JURY NEWS CORP'S RUPERT MURDOCH IS NEGOTIATING A SALE OF HIS 50 CONTROLLING INTEREST IN A VERY PROFITABLE HONG KONG ENGLISHLANGUAGE NEWSPAPER APPLE COMPUTER IS EXPECTED TO UNVEIL TODAY A MULTIMEDIA ACCESSORY KIT FOR COMPUTERS USING INTEL'S CHIPS PEPSICO IS TEST MARKETING THE SALE OF DIET PEPSI WITH A FRESHNESS DATE STAMPED ON CANS IN AN EFFORT TO GAIN AN EDGE OVER DIET COKE AND OTHERS AN INSURANCE INDUSTRY CONSORTIUM SAID IT ACTIVATED IN NINE STATES A NETWORK FOR PROCESSING HEALTH INFORMATION ELECTRONICALLY TO HELP CUT COSTS KATY INDUSTRIES' CONTROLLING FAMILY REJECTED AN INVESTMENT PARTNERSHIP'S 29ASHARE OR 262 MILLION BID FOR THE DIVERSIFIED MANUFACTURER FERROFLUIDICS SAID IT OVERSTATED RESULTS IN EACH OF ITS THREE 1993 QUARTERS AMID A PROBE BY REGULATORS FOR ALLEGEDLY VIOLATING SECURITIES LAWS THE MAGNETIC FLUID MAKER SAID IT PLANS TO RESTATE ABOUT 2 MILLION IN OPERATING PROFIT AND 11 MILLION IN REVENUE BONDS LEHMAN BROTHERS TREASURY INDEX 566389 UP 5441 COMMODITIES OIL 1773 A BARREL OFF 24 CENTS DOW JONES FUTURES INDEX 12645 UP 041 SPOT INDEX 12214 OFF 046 DOLLAR 10450 YEN OFF 135 16170 MARKS OFF 00270 9309070044 930907 BUSINESS BRIEF BCE INC UNIT BUYS PAGING OPERATIONS OF MOTOROLA CANADA CONCERN BELL MOBILITY PAGING A TORONTO UNIT OF BCE MOBILE COMMUNICATIONS INC SAID IT ACQUIRED THE ONTARIO AND QUEBEC OPERATIONS OF MOTOROLA CANADA'S PAGING BUSINESS TERMS WEREN'T DISCLOSED BELL MOBILITY SAID THE PURCHASE WILL ADD 35000 PAGERS TO ITS BASE OF MORE THAN 150000 INDUSTRY SOURCES SAY ONE PAGER PRODUCES ABOUT 240 CANADIAN DOLLARS US181 OF RENTAL REVENUE A YEAR BCE MOBILE MONTREAL OPERATES MOBILE COMMUNICATIONS SERVICES AND IS A PUBLICLY TRADED UNIT OF BCE INC MONTREAL MOTOROLA CANADA IS A UNIT OF MOTOROLA INC SCHAUMBURG ILL 9309070043 930907 KENNAMETAL SPECIAL CHARGE LATROBE PA KENNAMETAL INC PLANS TO TAKE A SPECIAL CHARGE OF BETWEEN 15 MILLION AND 20 MILLION IN ITS CURRENT FISCAL FIRST QUARTER LARGELY FOR THE CLOSURE OF A GERMAN MANUFACTURING AND WAREHOUSING FACILITY THE COMPANY SAID IT INTENDS TO CLOSE THE FACILITY IN NEUNKIRCHEN AND TRANSFER THE OPERATIONS TO OTHER FACILITIES BY JUNE 1994 ABOUT 185 EMPLOYEES WILL BE LAID OFF THE COMPANY SAID THE REDUCTIONS ARE PART OF ITS ACQUISITION OF HERTEL AG A FURTH GERMANY MAKER OF METALCUTING PIECES KENNAMETAL MAKES CARBIDE PRODUCTS CERAMICS AND MACHINECUTTING TOOLS IN THE FIRST QUARTER ENDED SEPT 30 1992 KENNAMETAL EARNED 3 MILLION OR 28 CENTS A SHARE ON SALES OF 1488 MILLION 9309070042 930907 BUSINESS BRIEF GENERAL ELECTRIC CO TRADING CONDITIONS STEADY BRITISH FIRM'S CHAIRMAN SAYS GENERAL ELECTRIC CO OF BRITAIN SAID ORDERS TO ITS CORE BUSINESSES HAVE INCREASED FROM MARCH'S RECORD LEVELS ALTHOUGH IN GENERAL TERMS NO IMPROVEMENT IS SEEN IN TRADING CONDITIONS SPEAKING AT THE ANNUAL GENERAL MEETING LORD PRIOR CHAIRMAN OF THE ELECTRONICS AND TELECOMMUNICATIONS COMPANY SAID OVERALL SALES ARE MARGINALLY HIGHER THAN THEY WERE LAST YEAR AND TOTAL PROFIT IS JUST AHEAD OF OUR BUDGETS BUT SLIGHTLY LOWER THAN LAST YEAR THE PERFORMANCE IS IN LINE WITH GEC'S EXPECTATIONS HE SAID INTEREST INCOME IS AHEAD OF LAST YEAR DESPITE LOWER INTEREST RATES AS GEC CONTINUES TO GENERATE CASH HE SAID GENERAL ELECTRIC OF BRITAIN ISN'T RELATED TO THE US COMPANY OF THE SAME NAME 9309070041 930907 BUSINESS BRIEF GTE CORP 2600 PHONE OPERATIONS JOBS ARE SLATED FOR ELIMINATION GTE CORP SAID ITS TELEPHONE OPERATIONS WILL CUT 2600 POSITIONS TO BECOME MORE COSTEFFECTIVE IN THE FACE OF INCREASING COMPETITION MOST OF THE REDUCTIONS WILL RESULT FROM THE ELIMINATION OF POSITIONS HELD VACANT FOLLOWING AN EARLY RETIREMENT PLAN AND A VOLUNTARY INCENTIVE PROGRAM COMPLETED THIS YEAR BUT ABOUT 1000 OF THE CUTS ARE EXPECTED TO COME FROM CURRENTLY STAFFED POSITIONS STARTING THIS MONTH GTE DOESN'T EXPECT TO TAKE A CHARGE FOR THE CUTS THE STAMFORD CONN TELECOMMUNICATIONS COMPANY ALSO SAID IT WILL NOW HAVE ONLY TWO FUNCTIONING AREAS FOR TELEPHONE OPERATIONS ONE IN WESTFIELD IND AND THE OTHER IN THOUSAND OAKS CALIF THE COMPANY HAD FOUR DOMESTIC OPERATING AREAS INCLUDING ONE IN TAMPA FLA AND ANOTHER IN TEXAS IN ADDITION GTE SET UP TWO INDEPENDENT STATE OPERATIONS IN TEXAS AND FLORIDA TWO OF ITS MAIN MARKETS THROUGH ADDITIONAL CONSOLIDATIONS AND ANNOUNCED PROPERTY SALES GTE SAID ITS TELEPHONE OPERATIONS WILL REDUCE ITS NUMBER OF REGIONS TO NINE FROM 16 AND DIVISIONS TO 44 FROM 61 9309070040 930907 WHAT'S NEWS WORLDWIDE CLINTON GEARED UP TO PUSH HIS CAMPAIGN FOR A STREAMLINED GOVERNMENT THE PRESIDENT TODAY WILL UNVEIL HIS ADMINISTRATION'S PROPOSAL TO REINVENT GOVERNMENT THE BLUEPRINT DRAWN UP UNDER THE SUPERVISION OF VICE PRESIDENT GORE WILL OFFER SOME 800 SUGGESTIONS ABOUT HOW TO MAKE GOVERNMENT WORK BETTER AND COST LESS THE PLAN CALLS FOR THE ELIMINATION OF 252000 FEDERAL JOBS AND CERTAIN GOVERNMENT OFFICES AND A CHANGE IN PROCUREMENT PROCEDURES TO ALLOW GOVERNMENT MANAGERS MORE FREEDOM CLINTON AND GORE WILL TRAVEL TOGETHER FOR THREE DAYS THIS WEEK TO PROMOTE ASPECTS OF THE PLAN IN CLEVELAND HOUSTON AND NORTHERN CALIFORNIA PLO CHIEF ARAFAT SOUGHT ARAB SUPPORT FOR HIS PEACE ACCORD WITH ISRAEL ARAFAT ARRIVED IN CAIRO TO DISCUSS THE PLOISRAELI PEACE AGREEMENT AFTER RECEIVING ONLY LUKEWARM SUPPORT IN DAMASCUS FOR THE PLAN WHICH CALLS FOR PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE TOWN OF JERICHO BEFORE FLYING TO EGYPT THE ONLY ARAB COUNTRY THAT HAS GIVEN WHOLEHEARTED SUPPORT TO THE PLAN ARAFAT PICKED UP ENDORSEMENTS FROM THE GULF COOPERATION COUNCIL A SIXNATION GROUP LED BY SAUDI ARABIA THE PLAN WON BACKING OVER THE WEEKEND FROM ARAFAT'S FATAH FACTION THE PLO'S LARGEST GROUP AND ALSO FROM JORDAN'S KING HUSSEIN BOSNIA'S SERB LEADER THREATENED TO DECLARE AN INDEPENDENT SERB STATE IN BOSNIA IF THE MUSLIM SIDE DELAYED MUCH LONGER IN SIGNING A PEACE AGREEMENT MEANWHILE CROATIA'S PRESIDENT INSISTED THAT CROATS HAD MADE ENOUGH CONCESSIONS IN THE PEACE PLAN AND WOULDN'T HAND OVER THE ADRIATIC PORT OF NEUM TO THE MUSLIMS UKRAINE'S PRESIDENT DEFENDED HIS DECISION TO SELL THE COUNTRY'S HALF OF THE 300VESSEL BLACK SEA FLEET TO RUSSIA SAYING THE ACCORD WAS AN ECONOMIC NECESSITY AND HE REJECTED CALLS TO QUIT KRAVCHUK ACCUSED BY OPPOSITION POLITICIANS OF BETRAYING NATIONAL INTERESTS EMPHASIZED THAT LAST WEEK'S ACCORD STILL NEEDS PARLIAMENTARY APPROVAL CLINTON VISITED HOMESTEAD FLA AND PLEDGED TO CONTINUE FEDERAL HELP FOR SOUTH FLORIDA RESIDENTS STILL RECOVERING FROM LAST YEAR'S HURRICANE ANDREW THE PRESIDENT BROUGHT ALONG LABOR SECRETARY REICH AND HUD CHIEF CISNEROS TO DEMONSTRATE THE ADMINISTRATION'S COMMITMENT TO ASSIST IN THE RECOVERY EFFORT CHINA DEMANDED AN APOLOGY FROM THE US FOR INSISTING ON A SEARCH OF A CHINESE SHIP CARRYING CARGO FOR IRAN TEHRAN CLAIMED THE US VIOLATED PRINCIPLES OF FREE NAVIGATION IN CONNECTION WITH THE SEARCH WHICH ENDED SATURDAY IN SAUDI ARABIA WITH NO EVIDENCE OF CHEMICAL ARMS MATERIALS THAT THE US HAD SAID WERE ABOARD A GROUP OF SOMALI YOUTHS ATTACKED ITALIAN UN PEACEKEEPERS WITH STONES AND GRENADES ONE DAY AFTER MILITIAMEN SHOT AND KILLED SEVEN NIGERIAN SOLDIERS IN MOGADISHU UN MILITARY OFFICIALS SAID ITALIAN TROOPS KILLED TWO SOMALIS AT A SITE NEAR SUNDAY'S AMBUSH WHICH WAS BLAMED ON FUGITIVE CLAN LEADER AIDID THOUSANDS OF BLACKS RALLIED TO PUSH FOR THE OUSTER OF WHITE SOUTH AFRICAN POLICE FROM JOHANNESBURGAREA TOWNSHIPS WHERE 26 BLACKS DIED IN WEEKEND CLASHES OFFICIALS SAID 30 MORE PEOPLE WERE KILLED IN THE PROVINCE OF NATAL THE VIOLENCE FOLLOWED THURSDAY'S OBSERVANCE OF PEACE DAY WHICH FOCUSED ON EFFORTS TO END FACTIONAL FIGHTING AZERBAIJAN'S ACTING PRESIDENT VOWED TO REPAIR TIES WITH RUSSIA AND URGED MOSCOW'S LEADERS TO HELP STOP AN ARMENIAN ADVANCE INTO HIS TERRITORY MEANWHILE RUSSIAN TROOPS WHICH HELP GUARD THE BORDER BETWEEN TURKEY AND ARMENIA UNDER AN ACCORD WITH ARMENIA SAID THEY CAME UNDER UNPROVOKED GUNFIRE FROM THE TURKISH SIDE THE ANGOLAN GOVERNMENT REJECTED AN OFFER BY UNITA REBELS TO HALT FIGHTING IN ANGOLA'S CIVIL WAR CALLING IT AN ATTEMPT BY THE REBELS TO HEAD OFF POSSIBLE UN SANCTIONS INCLUDING A FREEZE ON THEIR ASSETS ABROAD MEANWHILE THE REBELS STEPPED UP THEIR ASSAULT ON THE BESIEGED SOUTHERN PORT OF CUITO ACCORDING TO RADIO REPORTS A RIGHTIST OPPOSITION COALITION REFUSED TO PARTICIPATE IN TALKS WITH NICARAGUA'S GOVERNMENT AND LEFTWING SANDINISTA LEADERS SLOWING EFFORTS TO PULL THE COUNTRY OUT OF A POLITICAL CRISIS LEADERS OF THE NATIONAL OPPOSITION UNION CALLED FOR A ONEWEEK DELAY IN THE TALKS AND DEMANDED THE RESIGNATIONS OF NINE PROGOVERNMENT LEGISLATORS 9309070039 930907 COMPETITORS ARE STEPPING IN AS BOOM IN TRAFFIC STRAINS HONG KONG AIRPORT BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL MACAO WHEN PAN AMERICAN WORLD AIRWAYS EXTENDED ITS CLIPPER SERVICE TO THE SOUTH CHINA COAST IN 1936 AIRLINE FOUNDER JUAN TRIPPE WANTED TO LAND IN HONG KONG BUT THE BRITISH COLONIAL GOVERNMENT DENIED PAN AM ACCESS PROMPTING THE CLIPPER TO FLY INSTEAD TO NEARBY MACAO THE TINY PORTUGUESE ENCLAVE GAVE MR TRIPPE A HERO'S WELCOME NEARLY 60 YEARS LATER HONG KONG'S KAI TAK AIRPORT IS STRAINING TO COPE WITH A GROWING TRAFFIC LOAD AND THE COLONY'S NEW AIRPORT AT CHEK LAP KOK WON'T BE READY UNTIL JUNE 1997 AT THE EARLIEST ONCE AGAIN MACAO IS WAITING IN THE WINGS POISED TO TAKE ADVANTAGE OF THE SITUATION AS IS SHENZHEN THE CHINESE BOOMTOWN JUST ACROSS THE BORDER FROM HONG KONG MACAO'S INTERNATIONAL AIRPORT IS DUE TO OPEN IN 1995 ABOUT 60 KILOMETERS AWAY AN AIRPORT AT SHENZHEN HAS PROVEN SO SUCCESSFUL IN ITS FIRST YEAR THAT BEIJING HAS ALLOWED IT TO BEGIN HANDLING INTERNATIONAL FLIGHTS SHENZHEN COULD SPEED PLANS TO BUILD A SECOND RUNWAY AND IMPROVE ITS INFRASTRUCTURE IN AN ATTEMPT TO BECOME AN INTERNATIONAL HUB BEFORE HONG KONG'S NEW AIRPORT OPENS JUST ABOUT EVERY AIRLINE FLYING TO HONG KONG IS INTERESTED IN MACAO AND SHENZHEN SAYS A WESTERN AIRLINE EXECUTIVE IN HONG KONG ESPECIALLY IF CHEK LAP KOK IS DELAYED HE ADDS WE NEED TO KEEP OUR OPTIONS OPEN AIRPORTS ARE MUSHROOMING IN THE PEARL RIVER DELTA TO ACCOMMODATE THE EXPLOSION IN PASSENGER AND FREIGHT TRAFFIC RESULTING FROM THE AREA'S ECONOMIC BLASTOFF BY 2000 THE HONG KONG MACAO AND SHENZHEN AIRPORTS ARE DUE TO BE HANDLING MORE THAN TWICE THE 23 MILLION PASSENGERS WHO PASSED LAST YEAR THROUGH KAI TAK AND SHENZHEN THE REGION'S SOLE MAJOR AIRPORTS AND CANTON PLANS TO START BUILDING A NEW INTERNATIONAL AIRPORT NEXT YEAR TO HANDLE 30 MILLION PASSENGERS ANNUALLY REPLACING AN AIRPORT THAT IS NEAR ITS CAPACITY OF 10 MILLION ZHUHAI ACROSS THE BORDER FROM MACAO HAS DYNAMITED A MOUNTAIN TO BEGIN BUILDING AN AIRSTRIP SHENZHEN MACAO AND CANTON ARE LIKELY TO BE BUSY REGIONAL AIRPORTS IN AN AREA WITH A POPULATION OF ABOUT 40 MILLION AVIATION EXPERTS SAY SHENZHEN AND MACAO ARE POSITIONING THEMSELVES TO ASSUME GREATER ROLES SHOULD THE NEW MEGAAIRPORT ON THE ISLET OF CHEK LAP KOK CONTINUE TO FACE DELAYS MANY AVIATION OFFICIALS DOUBT THE FACILITY WILL OPEN BEFORE 1998 SOME 21 MILLION PASSENGERS LAST YEAR SQUEEZED THROUGH HONG KONG'S KAI TAK THE FOURTH BUSIEST AIRPORT IN THE WORLD IN 1994 DESPITE ADDITIONAL PARKING AND TERMINAL SPACE THE AIRPORT IS EXPECTED TO HIT ITS LIMIT AT ABOUT 24 MILLION PASSENGERS WE WONDER HOW WE WILL ACCOMMODATE PEAK WINTER TRAFFIC CONCEDES PETER BODILEY ASSISTANT DIRECTOR TECHNICAL AND PLANNING FOR THE CIVIL AVIATION DEPARTMENT OF HONG KONG TRAFFIC IS EXPECTED TO KEEP GROWING 6 TO 8 A YEAR THROUGH THE 1990S WHEN CONSTRAINTS BECOME SO TIGHT CARRIERS DEVELOP OTHER ROUTES HE SAYS THAT KEEPS KONG DONG GENERAL MANAGER OF SHENZHEN'S AIRPORT BUSY DELEGATIONS FROM MORE THAN 10 COUNTRIES AND 20 AIRLINES HAVE VISITED THE AIRPORT AND SOME ARE DOING FEASIBILITY STUDIES ON OPERATING FROM SHENZHEN IT BECAME AN INTERNATIONAL GATEWAY IN MAY WHEN CANTONBASED CHINA SOUTHERN AIRLINES INAUGURATED A ROUTE TO SINGAPORE THE FIRST PHASE OF THE SHENZHEN AIRPORT WAS COMPLETED IN LATE 1991 WITHIN A YEAR IT BECAME THE SIXTH BUSIEST IN CHINA HANDLING 17 MILLION PASSENGERS AND 11500 TONS OF CARGO LAST YEAR BY NEXT YEAR THE AIRPORT IS EXPECTED TO RANK FOURTH IN CHINA BEHIND BEIJING SHANGHAI AND CANTON IF IT WERE CHEAPER TO LAND IN SHENZHEN AND PEOPLE WERE WILLING TO FLY THERE WE'D GO AS LONG AS THE INFRASTRUCTURE WAS THERE SAYS DON CURRAN VICE PRESIDENT OF UNITED AIRLINES' ASIA DIVISION THAT'S JUST WHAT IS MISSING FOR ONE THING THE AIRPORT'S INTERIOR IS STARTING TO LOOK DILAPIDATED MORE IMPORTANTLY QUICK ACCESS FROM HONG KONG ISN'T POSSIBLE THE TRIP AND SLUGGISH PASSPORT CLEARANCE CAN TAKE TWO HOURS FOR CARGO A COMPLEX TO ENSURE PROPER STORAGE AND HANDLING ISN'T DUE TO OPEN UNTIL 1995 PLANS ARE BEING DRAFTED TO EXPAND SHENZHEN TO A CAPACITY OF 12 MILLION PASSENGERS STILL WELL SHY OF HONG KONG'S CHEK LAP KOK WHOSE CAPACITY IS PROJECTED TO BE 38 MILLION PASSENGERS MACAO IS JUST A 50MINUTE JETFOIL RIDE FROM HONG KONG OVERFLOW FROM KAI TAK ALSO IS EXPECTED TO HELP THE MACAO AIRPORT ATTRACT PASSENGER AND CARGO AIRLINES WHEN IT OPENS IN MID1995 MACAO OFFICIALS SAY THE AIRPORT WILL BE ABLE TO HANDLE 22 MILLION PASSENGERS AND 160000 TONS OF CARGO IN ITS FIRST YEAR BY 2000 THEY PREDICT IT WILL HANDLE 35 MILLION PASSENGERS AND ABOUT 200000 TONS OF CARGO THE GREATEST IMPACT OF THE MACAO AND SHENZHEN AIRPORTS COULD BE ON FREIGHT AROUND 70 OF HONG KONG'S EXPORTS ORIGINATE IN CHINA AND CARGO HANDLERS WOULD LIKE TO AVOID MOVING SOME OF IT THROUGH THE CONGESTED COLONY MACAO AND SHENZHEN WILL HAVE TO PROVE THEY CAN DELIVER WHAT HONG KONG CAN GIVE SAYS DIRK VISSER ASIANPACIFIC DIRECTOR OF LUXEMBOURGBASED CARGOLUX ONE OF EUROPE'S BIGGEST CARGO AIRLINES DESPITE ALL THE PRESSURE I HARDLY KNOW ANY AIRPORT IN THE WORLD THAT IS AS SAFE AND MAINTAINS AS HIGHQUALITY SERVICE AS KAI TAK EVEN SO HONG KONG OFFICIALS TAKE THE COMPETITION SERIOUSLY AT THE COLONY'S AVIATION DEPARTMENT MR BODILEY SAYS KAI TAK'S CONGESTION WILL CAUSE HONG KONG TO LOSE POTENTIAL TRAFFIC IN THE SHORT TERM AND THAT CHEK LAP KOK MIGHT NOT BE ABLE TO WIN BACK ALL THE LOST BUSINESS IN HINDSIGHT WE SHOULD HAVE STARTED BUILDING THE NEW AIRPORT FIVE YEARS EARLIER MR BODILEY SAYS 9309070038 930907 BUSINESS BRIEF CURRAGH INC MINING FIRM DECLINES OFFER OF CASH INJECTION FOR EQUITY CURRAGH INC SAID IT DECLINED AN OFFER FROM KOREA ZINC CO AND SAMSUNG GROUP TO INJECT CASH INTO THE COMPANY FOR AN EQUITY STAKE TORONTOBASED CURRAGH SAID IN A STATEMENT THAT THE OFFER WHICH EXPIRED FRIDAY DIDN'T MEET THE INVESTMENT CRITERIA OF A CONDITIONAL AGREEMENT SIGNED IN MAY THAT AGREEMENT CALLED FOR AN INVESTMENT OF 50 MILLION CANADIAN DOLLARS US377 MILLION IN EXCHANGE FOR A 50 EQUITY STAKE KOREA ZINC AND SAMSUNG LAST MONTH SOUGHT UNDISCLOSED CHANGES TO CURRAGH'S RESTRUCTURING PLANS AS A CONDITION OF THE PLANNED INVESTMENT CURRAGH A MINING CONCERN IS OPERATING UNDER CANADIAN BANKRUPTCYCOURT PROTECTION A CURRAGH SPOKESMAN SAID THE COMPANY IS IN TALKS WITH OTHER INVESTMENT GROUPS AND STILL PLANS TO FILE A RESTRUCTURING PLAN IN COURT THIS WEEK THE SPOKESMAN SAID HE DIDN'T KNOW WHY CURRAGH REJECTED THE OFFER AND COMPANY OFFICIALS WEREN'T AVAILABLE FOR COMMENT 9309070037 930907 PEPPERAND SALT AVOIDS THE WAITING PERIOD KNOW WHAT YOU'RE EATING CHUM DO I NEED XANTHAN GUM AS SLOWLY PAST I WENT THE OTHER TWO PERCENT 9309070036 930907 BUSINESS BRIEF POTASH CORP OF SASKATCHEWAN CANADIAN COMPANY TO BUY TWO MINES FOR 1207 MILLION POTASH CORP OF SASKATCHEWAN SAID IT AGREED TO BUY TWO CANADIAN POTASH MINES FROM RIO ALGOM LTD FOR 160 MILLION CANADIAN DOLLARS 1207 MILLION THE SASKATOON POTASH PRODUCER SAID IT WILL PAY ADDITIONAL AMOUNTS FOR SUCH THINGS AS ACCOUNTS RECEIVABLE AND A ROYALTY IF PRICES IMPROVE FOR THE MINES' OUTPUT IT SAID THE TRANSACTION IS SUBJECT TO APPROVAL BY REGULATORS AND CERTAIN THIRD PARTIES POTASH CORP SAID THE TWO MINES PRODUCED 972000 METRIC TONS OF POTASH LAST YEAR THE COMPANY REPORTED 1992 PRODUCTION OF 39 MILLION METRIC TONS RIO ALGOM IS A TORONTO MINING CONCERN 9309070035 930907 SEC COMPLAINT CITES REAL ESTATE INVESTOR ON SOLICITATIONS COURT IMPOSES FREEZE ON ASSETS OF STEPHEN MURPHY HALTS EFFORT TO RAISE 75 MILLION BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIAN STEPHEN J MURPHY BOASTED OF HIS RISE FROM HOMELESS ALCOHOLIC TO REAL ESTATE MAVEN ON LARRY KING'S TELEVISION SHOW AND IN ADVERTISEMENTS IN THIS NEWSPAPER AND OTHERS THE NATIONAL EXPOSURE AND THE PROMISE OF HANDSOME RETURNS PROMPTED INVESTORS TO SEND MR MURPHY 137 MILLION IN THE LAST YEAR ALONE BUT LAST WEEK A FEDERAL JUDGE IN LOS ANGELES ADDED A THIRD R' TO MR MURPHY'S RAGSTORICHES STORY RESTRAINING ORDER BASED ON A COMPLAINT FROM THE SECURITIES AND EXCHANGE COMMISSION US DISTRICT JUDGE CONSUELO MARSHALL FROZE THE ASSETS OF MR MURPHY AND HIS INVESTMENT VEHICLE AMERICAN CAPITAL INVESTMENTS INC BASED IN LOS ANGELES SHE ALSO HALTED THE COMPANY'S EFFORT TO RAISE ANOTHER 75 MILLION OSTENSIBLY FOR REAL ESTATE PURCHASES THE SEC SAYS THE 44YEAROLD MR MURPHY DESCRIBES HIMSELF AS A FORMER HOMELESS VIETNAM VETERAN AND RECOVERING ALCOHOLIC TURNED REAL ESTATE EXPERT ACCORDING TO GLOWING ARTICLES IN THE LOS ANGELES TIMES AND THE HARTFORD CONN COURANT MR MURPHY USED SOME OF HIS REAL ESTATE ACUMEN TO BUY APARTMENT BUILDINGS AND PROVIDE FREE LODGING TO HOMELESS VETERANS THE LARGESS HELPED MR MURPHY LAND APPEARANCES ON MR KING'S TELEVISION PROGRAM AS WELL AS TOM SNYDER'S TV PROGRAM AND JOHN & LEEZA FROM HOLLYWOOD ACCORDING TO THE SEC ON TELEVISION AND IN ADVERTISEMENTS IN THE WALL STREET JOURNAL THE NEW YORK TIMES THE LOS ANGELES TIMES AND BUSINESSWEEK MR MURPHY OFFERED HIS BOOKS ONE UP ON TRUMP AND TRICKLE UP ECONOMICS THE SEC LED BY ITS LOS ANGELES ENFORCEMENT CHIEF LORI RICHARDS ALLEGES MR MURPHY SOLICITED THE BUYERS OF HIS BOOKS TO INVEST IN COMMERCIAL REAL ESTATE VENTURES BUT NEGLECTED TO REGISTER THE INVESTMENT OPPORTUNITIES AS SECURITIES THE SEC ALSO SUGGESTS THAT MR MURPHY MADE SEVERAL MISSTATEMENTS TO HIS 180 INVESTORS INCLUDING PROMISES THAT THEIR STAKES WOULD GENERATE RETURNS OF 25 TO 135 THE 11 COMMERCIAL REAL ESTATE PROPERTIES PURCHASED BY AMERICAN CAPITAL INVESTMENTS ARE UNPROFITABLE THE SEC ALLEGES MR MURPHY'S LAWYER IRVING EINHORN FORMER ADMINISTRATOR OF THE SEC OFFICE IN LOS ANGELES SAID HIS CLIENT WILL CONTEST THE COMPLAINT THIS IS A GUY WHO DIDN'T STEAL ANY MONEY MR EINHORN SAID HE GAVE INVESTORS EVERY NICKEL ALL OF THE BUILDINGS ARE THERE THERE IS NOT ONE UNHAPPY INVESTOR MR EINHORN CONCEDES THAT AMERICAN CAPITAL INVESTMENTS MAY HAVE VIOLATED THE REGISTRATION PROVISIONS BUT HE ADDED QUICKLY RIGHT NOW WE'RE NOT ADMITTING ANYTHING 9309070034 930907 INTERNATIONAL BRIEF ALUSUISSELONZA HOLDING AG CHEMICALS ALUMINUM GROUP PROFIT FELL 42 IN 1ST HALF ALUSUISSELONZA HOLDING AG A CHEMICALS AND ALUMINUM GROUP BASED IN ZURICH SAID ITS FIRSTHALF GROUP PROFIT DROPPED 42 FROM A YEAR EARLIER ALUSUISSE BLAMED THE RESULTS ON UNSATISFACTORY BUSINESS IN THE ALUMINUM SECTOR AND AT COMPANIES DUE FOR RESTRUCTURING ANALYSTS SAID THE RESULTS WERE WELL BELOW EXPECTATIONS NET INCOME IN THE FIRST HALF DROPPED 42 TO 49 MILLION SWISS FRANCS 339 MILLION FROM 85 MILLION FRANCS CASH FLOW SLIPPED 20 TO 225 MILLION FRANCS FROM 280 MILLION FRANCS WHILE OPERATING PROFIT DROPPED 24 TO 152 MILLION FRANCS FROM 201 MILLION FRANCS SALES FOR THE HALF DIPPED 58 TO 315 BILLION FRANCS FROM 335 BILLION FRANCS ALUSUISSE SAID THAT WHILE THE CHEMICALS DIVISION IMPROVED AND THE PACKAGING DIVISION HELD ITS OWN THE RECESSION IN BASIC INDUSTRIES HURT THE ALUMINUM SECTOR 9309070033 930907 EUROPEAN CAR SALES DECLINED 56 IN AUGUST AS UK MARKET SAW INCREASE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT EUROPEAN CAR SALES EASED JUST 56 IN AUGUST COMPARED WITH YEARAGO LEVELS BY FAR THE MILDEST DECLINE SO FAR THIS YEAR BUT LAST MONTH'S MODERATE DROP WAS PRIMARILY A SEASONAL ANOMALY RESULTING FROM A SURGE IN THE UNITED KINGDOM MARKET WHERE AUGUST IS A TRADITIONAL BOOM MONTH FOR CAR SALES EXCEPT FOR THE UK MARKET WHICH SCORED A 98 INCREASE IN CAR SALES THE GLOOM IN THE TROUBLED EUROPEAN CAR MARKET REMAINED INTACT FOR THE FIRST EIGHT MONTHS OF THE YEAR THE MARKET SHOWED A 17 DECLINE MARKING THE INDUSTRY'S SHARPEST DOWNTURN SINCE WORLD WAR II FIGURES WERE PROVIDED BY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AN INDUSTRY FEDERATION BASED IN BRUSSELS KNOWN BY THE FRENCH ACRONYM ACEA INDUSTRY OBSERVERS NOTED WITH MUTED OPTIMISM THAT IN MOST MARKETS THE AUGUST DECLINES WERE SLIGHTLY NARROWER THAN THE YEARTODATE DROPS SIGNALLING AT LEAST A DECELERATION IN THE MARKET'S PLUNGE BUT CLEARLY CALLS FOR A TURNAROUND WHEN THREE OF THE FOUR MAJOR EUROPEAN MARKETS ARE EXPERIENCING DOUBLEDIGIT DECLINES WOULD BE PREMATURE SAID DAGMAR BOTTENBRUCH AUTO INDUSTRY ANALYST FOR CSFB ITALIA SPA IN MILAN REFERRING TO THE PERSISTENT WEAKNESS IN THE GERMAN ITALIAN AND FRENCH MARKETS WHILE OPTIMISTS MAY BEGIN TO DISCERN NASCENT GLIMMERS OF IMPROVEMENT A FUNDAMENTAL RECOVERY IS STILL FAR AWAY INDUSTRY OBSERVERS SAID THE UK IS THE ONLY MARKET THAT'S HEALTHY THIS YEAR SAID PHILIP AYTON AUTO INDUSTRY ANALYST WITH BARCLAY'S DE ZOETE WEDD IN LONDON AND IN AUGUST THE UK'S IMPACT ON THE OVERALL EUROPEAN MARKET IS SEVERELY EXAGGERATED BECAUSE UK CAR OWNERS RECEIVE THE NEXT YEAR'S REGISTRATION STICKER IN AUGUST MANY WAIT UNTIL THEN TO BUY A NEW CAR RESULTING IN A SURGE IN CAR SALES EACH AUGUST LAST MONTH UK SALES ACCOUNTED FOR 44 OF ALL EUROPEAN COMMUNITY CAR SALES COMPARED WITH ONLY ABOUT 15 FOR THE YEAR AS A WHOLE JOHN LAWSON RESEARCH DIRECTOR AT DRI/MCGRAWHILL IN LONDON SAID THE SECOND HALF OF THE YEAR WILL BE A LITTLE LESS GLOOMY IN TERMS OF PERCENTAGE DROPS BUT I DON'T EXPECT TO SEE ANY REAL LETUP UNTIL WELL INTO NEXT YEAR INDUSTRY FEDERATION ACEA PREDICTS A 17 DROP IN EUROPEAN CAR SALES FOR THE YEAR 1993 LAST WEEKEND'S AGREEMENT BETWEEN JAPAN AND THE EC TO CUT THE NUMBER OF CARS ENTERING THE EC THIS YEAR BY NEARLY 18 TO 980000 UNITS MEANWHILE WAS SEEN OFFERING ONLY LIMITED RESPITE TO TROUBLED EUROPEAN CAR MAKERS MANY OF WHOM ARE ALREADY BATTLING WITH TOOHIGH COST STRUCTURES AND INEFFICIENT FACTORIES WHILE THE ACCORD BETWEEN THE EC AND JAPAN IS SUBSTANTIALLY MORE RESTRICTIVE THAN THE PREVIOUS PACT WHICH WOULD HAVE REDUCED JAPANESE IMPORTS BY ONLY 94 ACEA COMPLAINED IT IS NOT SUFFICIENT TO KEEP JAPANESE PRODUCERS FROM GAINING GROWING MARKET SHARE ACCORDING TO THE FEDERATION'S PREDICTION JAPANESE MAKERS' SHARE OF THE SHRINKING EUROPEAN MARKET WILL RISE TO NEARLY 13 THIS YEAR COMPARED WITH 11 LAST YEAR IN THE MIDST OF THE WORST DECLINE SINCE THE WAR IT IS NOT ACCEPTABLE THAT JAPAN'S SHARE OF THE MARKET IS INCREASING SAID JAMES ROSENSTEIN SPOKESMAN FOR THE AUTO FEDERATION DOUGLAS LAVIN CONTRIBUTED TO THIS ARTICLE 9309070032 930907 REVIEW & OUTLOOK EDITORIAL HOUSE MISRULE REP TIM PENNY A 41YEAROLD MINNESOTA CONGRESSMAN IS A LOYAL DEMOCRAT HE VOTED FOR BOTH PRESIDENT CLINTON'S BUDGET AND HIS ILLFATED STIMULUS PACKAGE HE GETS AT LEAST 50 RATINGS FROM LIBERAL INTEREST GROUPS SUCH AS THE ACLU AND AFLCIO HE'S HAD ENOUGH THOUGH AND ANNOUNCED THIS SUMMER THAT HE'S RETIRING FROM CONGRESS ESSENTIALLY HE'S SAYING WHAT'S THE POINT REP PENNY SAYS THAT MODERATES SUCH AS HIMSELF ARE OFTEN FROZEN OUT OF THE POLICY PROCESS BY LIBERAL HOUSE LEADERS IN PARTICULAR HE CITES HOW THE LEADERSHIPCONTROLLED RULES COMMITTEE MANIPULATES THE OUTCOME OF VOTES ANY BILL THAT GOES TO THE FULL HOUSE MUST FIRST PASS THROUGH THE 13MEMBER RULES COMMITTEE WHICH DECIDES HOW LONG THE DEBATE ON IT WILL LAST AND WHETHER OR NOT AMENDMENTS WILL BE ALLOWED MOST BILLS NOW GO TO THE FLOOR UNDER A CLOSED RULE WHICH SHARPLY LIMITS THE NUMBER OF AMENDMENTS REP PENNY SAYS THE GROWTH OF CLOSED RULES IS LINKED TO CHANGES IN THE DEMOCRATIC CAUCUS MANY OF THE NEWER MEMBERS ARE MORE CENTRIST AND OPEN TO NEW IDEAS THAN THE LEADERSHIP THE OLDLINE LIBERALS ARE TRYING TO HANG ON TO THEIR POWER HE SAYS THE ONLY WAY THEY CAN BE SURE OF DOING THAT IS TO RIG THE RULES TO MAKE SURE THEY AREN'T CHALLENGED ON THE FLOOR MR PENNY HOPES TO USE HIS REMAINING MONTHS IN OFFICE TO PUSH FOR INTERNAL REFORMS OF CONGRESS AND HE'S COME UP WITH SOME SUGGESTIONS FOR HOW TO DO IT ABOLISH THE RULES COMMITTEE BECAUSE THE COMMITTEE SLAVISHLY FOLLOWS THE DEMOCRATIC LEADERSHIP'S LINE IT SERVES NO USEFUL FUNCTION REP PENNY WOULD CUT OUT THE MIDDLEMAN AND HAVE THE LEADERSHIP ITSELF SET THE RULES VOTERS WOULD KNOW WHO TO BLAME IF A BILL DIDN'T REACH THE FLOOR AND TAXPAYERS WOULD SAVE 26 MILLION A YEAR END SECRET DISCHARGE PETITIONS THE HOUSE'S GAG RULE AGAINST NAMING MEMBERS WHO SIGN PETITIONS TO BRING BILLS DIRECTLY TO THE FLOOR IS ONE MORE UNNECESSARY LOG ON THE FIRE OF VOTER CYNICISM ABOUT GOVERNMENT LIMIT COMMITTEE CHAIRMANSHIPS TO SIX YEARS REP PENNY SAYS THIS REFORM WOULD SHAKE THE PLACE TO ITS FOUNDATIONS AND RESTORE DEMOCRACY ON CAPITOL HILL WITHOUT TERM LIMITS LONGTIME COMMITTEE CHAIRMEN OFTEN LOSE SIGHT OF NATIONAL CONCERNS AND FOCUS ON PROTECTING THEIR TURF MAKE ALL LAWS APPLY EQUALLY TO CONGRESS THE CURRENT SYSTEM OF ALLOWING INDEPENDENT CONGRESSIONAL PANELS TO HEAR DISCRIMINATION OR WORKPLACE COMPLAINTS AGAINST CONGRESS IS A CHARADE BOTH MEMBERS AND THE GENERAL PUBLIC SHOULD BE SUBJECTED TO THE SAME ENFORCEMENT THE FIRST TIME AN OSHA INSPECTOR VISITED CAPITOL HILL YOU'D SEE SOME SILLY RULES REPEALED REP PENNY SAYS ELIMINATE HALF OF THE HOUSE'S 266 COMMITTEES AND SUBCOMMITTEES THE IDIOTIC PROLIFERATION OF HOUSE COMMITTEES MANY WITH OVERLAPPING RESPONSIBILITIES BREEDS INEFFICIENCY WE HAVE 100 JOB TRAINING PROGRAMS SCATTERED THROUGHOUT THE GOVERNMENT BECAUSE EVERY COMMITTEE WANTS TO HAVE ONE SAYS REP PENNY AMEND THE 1974 BUDGET ACT TO ELIMINATE APPROPRIATIONS COMMITTEES AND CREATE A LINEITEM VETO HAVING EACH AGENCY'S BUDGET AUTHORIZED BY ONE COMMITTEE AND THEN APPROPRIATED BY ANOTHER KEEPS MANY DUBIOUS PROGRAMS ALIVE AND OTHERS WOEFULLY UNDERFUNDED GIVING THE PRESIDENT A TRUE LINEITEM VETO WOULD PROVIDE A USEFUL CHECK ON PORKBARREL SPENDING THE WAY THE HOUSE IS RUN NOW SURELY DRIVES SOME MEMBERS OUT OF THE PLACE AND DETERS SERIOUS AMERICANS FROM SEEKING A SEAT IN CONGRESS BUT THE HOUSE'S POLITICSLIMITING RULES DO MORE THAN THAT THEY EFFECTIVELY DISENFRANCHISE THE CONSTITUENTS OF MODERATE TO CONSERVATIVE MEMBERS NO MATTER WHO THEY SEND TO WASHINGTON NOTHING SUBSTANTIVE CHANGES A FEW COMMITTEE CHAIRMEN AND THEIR UNELECTED STAFFERS STILL CALL THE SHOTS IF THERE IS POLICY GRIDLOCK IN WASHINGTON PERHAPS IT HAS LESS TO DO WITH PARTISANSHIP THAN WITH THE FACT THAT THE INTERESTS OF THE GENERAL PUBLIC ARE SO FAR OUT OF SYNC WITH THOSE OF THE CONGRESSIONAL POWER STRUCTURE IT'S A KIND OF CYNICISM UNLIKELY TO CHANGE UNTIL CONGRESS CHANGES OR SOMEONE DOES IT FOR THEM WHICH COME TO THINK OF IT IS EXACTLY WHERE ROSS PEROT OUGHT TO BE DEVOTING HIS MORE PRODUCTIVE ENERGIES MAYBE HE SHOULD PUT TIM PENNY AT THE FRONT OF THE COLUMN 9309070031 930907 BUSINESS BRIEF SOUTHWEST AIRLINES SUIT OVER ALLEGED AGE BIAS IN HIRING OF PILOTS IS SETTLED SOUTHWEST AIRLINES SAID IT AGREED TO PAY 1250000 TO SETTLE A CLASSACTION SUIT WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THAT ACCUSED THE CARRIER OF DISCRIMINATING AGAINST OLDER PILOTS THE SUIT FILED IN 1990 ALLEGED THE DALLAS AIRLINE HADN'T HIRED A PILOT OLDER THAN 45 SINCE 1987 SOUTHWEST DENIES THAT SAYING IT HAS HIRED 39 PILOTS OLDER THAN 45 DURING THAT TIME THE AIRLINE SAID IT DECIDED TO SETTLE THE LAWSUIT TO AVOID THE EXPENSE OF A TRIAL AND THE RISK THAT A THIRD PARTY MIGHT MAKE DECISIONS REGARDING WHO FLIES ITS JETS WE DECIDED IT WAS BETTER TO HANDLE IT OURSELVES RATHER THAN LET A JUDGE AND JURY HANDLE IT A SOUTHWEST SPOKESMAN SAID IN SETTLING THE LAWSUIT SOUTHWEST SAID IT ISN'T ADMITTING TO PAST VIOLATIONS NOR COMMITTING TO HIRE ANY PILOT WHO HASN'T ALREADY BEEN SELECTED BY THE AIRLINE ON THE BASIS OF QUALIFICATIONS 9309070030 930907 INTERNATIONAL SINGAPORE'S MONEY SUPPLY SINGAPOREAP SINGAPORE'S M1 MONEY SUPPLY FELL 004 TO 19219 BILLION SINGAPORE DOLLARS IN JUNE US1197 BILLION FROM S19227 BILLION IN MAY THE MONETARY AUTHORITY OF SINGAPORE SAID IN ITS MONTHLY STATISTICAL BULLETIN MONDAY THE LATEST FIGURE WAS ALSO UP 13 FROM THE S17033 BILLION RECORDED IN JUNE 1992 THE YEARONYEAR GAIN COMPARES WITH A 12MONTH JUMP OF 15 IN MAY AND A 18 RISE IN APRIL M1 INCLUDES CURRENCY IN ACTIVE CIRCULATION AND DEMAND DEPOSITS 9309070029 930907 INTERNATIONAL BRIEF BANQUE NATIONALE DE PARIS CHAIRMAN DOESN'T EXPECT MUCH IMPROVEMENT FOR HALF MICHEL PEBEREAU CHAIRMAN OF FRANCE'S BANQUE NATIONALE DE PARIS WARNED THAT THE SECOND HALF OF 1993 ISN'T LIKELY TO SHOW MUCH IMPROVEMENT FOR THE GROUP AS IT HEADS TO THE PRIVATE SECTOR THE FIRSTHALF PROFIT WAS VERY LIMITED THE PERSPECTIVES FOR THE SECOND HALF DON'T LEAVE MUCH HOPE FOR AN IMPROVEMENT MR PEBEREAU SAID IN AN INTERVIEW PUBLISHED OVER THE WEEKEND IN LE FIGARO THE GOVERNMENT HAS ANNOUNCED THAT BNP WILL BE PRIVATIZED DURING THE NEXT FEW WEEKS FOR THE FIRST HALF OF 1993 BNP'S NET GROUP PROFIT FELL 61 TO 522 MILLION FRANCS 902 MILLION 9309070028 930907 INTERNATIONAL VEBA PLANS TO CUT 10000 JOBS DUESSELDORF GERMANY'S VEBA AG SAID THAT IT PLANS TO CUT 10000 JOBS FROM ITS PAYROLLS BY THE END OF 1994 AS PART OF A RESTRUCTURING PROGRAM AIMED AT CUTTING COSTS THE RESTRUCTURING PROGRAM IS DESIGNED TO YIELD 12 BILLION MARKS 730 MILLION IN SAVINGS BY THE END OF 1995 ALTHOUGH VEBA PROVIDED NO FURTHER DETAILS VEBA IS A GERMAN ENERGY OIL REFINING AND PETROCHEMICAL GROUP 9309070027 930907 ADVERTISING PUBLIC MEDIA GOES FOR JUGULAR TO PUSH CAUSES BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO LATE LAST YEAR A FULLPAGE ADVERTISEMENT RAN IN THE NATIONAL EDITION OF THE NEW YORK TIMES DECRYING NORWAY'S DECISION TO VIOLATE AN INTERNATIONAL BAN ON WHALING THE AD URGED A BOYCOTT OF NORWEGIAN CRUISE LINE AND VIKING CRUISE LINE NEITHER LINE HAS ANYTHING TO DO WITH NORWAY'S WHALING POLICY BUT THEY ARE AMONG THE COUNTRY'S BIGGEST FOREIGNCURRENCY EARNERS TWO DAYS LATER KNUT U KLOSTER JR CHAIRMAN OF KLOSTER CRUISE LTD WHICH OWNS THE CRUISE LINES CALLED THE AD'S SPONSORS HE PROMISED TO USE EVERY TELEVISION APPEARANCE AND PRINT INTERVIEW TO URGE THE GOVERNMENT OF NORWAY TO RESPECT THE BAN AND HE SAID HE WAS DISMAYED TO HAVE BEEN SINGLED OUT SINCE HIS COMPANY WAS ALREADY ENVIRONMENTALLY SENSITIVE THE AD WAS DESIGNED AND PLACED BY THE PUBLIC MEDIA CENTER AN OBSCURE NONPROFIT AD AGENCY BASED IN SAN FRANCISCO ON BEHALF OF EARTH ISLAND INSTITUTE A MUCH BETTER KNOWN ENVIRONMENTAL GROUP THE AGENCY REGULARLY WAGES HIGHPROFILE PUBLICRELATIONS BATTLES ON BEHALF OF CLIENTS IN THE PROGRESSIVE POLITICAL SPECTRUM SUCH AS PLANNED PARENTHOOD SIERRA CLUB AND HANDGUN CONTROL INC WHILE TRYING TO KEEP A LOWPROFILE ITSELF WE GET A LOT OF CALLS FROM PEOPLE WE'RE IN CONFLICT WITH AND THEY SAY LOOK STOP THE ADS WE'LL DO WHAT YOU WANT' SAYS HERBERT CHAO GUNTHER EXECUTIVE DIRECTOR OF THE AGENCY IT'S PRETTY PERSUASIVE TWO DECADES AGO PUBLIC MEDIA PLACED LESS THAN 100000 OF ADS A YEAR NOW IT HAS A STAFF OF 28 AND PLACES MORE THAN 1 MILLION IN PRINT ADS A YEAR THE ADS ARE MOSTLY IN THE FORM OF FULLPAGE ADS IN THE TIMES WHICH COST FROM 12000 TO 25000 MANY AD AGENCIES DO PROBONO WORK AND THE ADVERTISING COUNCIL BASED IN NEW YORK IS A NONPROFIT ORGANIZATION THAT COORDINATES PUBLICINTEREST CAMPAIGNS WITH FIRMS THAT VOLUNTEER THEIR TIME BUT PUBLIC MEDIA IS DIFFERENT IT GOES OUT OF ITS WAY TO ANTAGONIZE COMPANIES AND DRUM UP CONTROVERSY AND UNLIKE TRADITIONAL AGENCIES PUBLIC MEDIA WHICH DOES MOSTLY PROBONO WORK NEVER PROMOTES A PRODUCT IT OFTEN URGES PEOPLE NOT TO PATRONIZE BUSINESSES WE'RE REALLY HAPPY IF WE GET INTO A FIGHT MR GUNTHER SAYS ABOUT 70 OF PUBLIC MEDIA'S CLIENTS PAY LITTLE OR NOTHING FOR ITS SERVICES SUBSIDIZED BY THE OTHER 30 AND DONATIONS MOREOVER THE AGENCY WILL SIGNON ONLY TO A CAUSE THAT IT FERVENTLY BELIEVES IN THEY ARE A VERY EFFECTIVE AGENCY SAYS DAVID PHILLIPS EXECUTIVE DIRECTOR OF EARTH ISLAND THEY'RE ON THE CUTTING EDGE OF TAKING DIFFICULT ISSUES AND MAKING THEM ACCESSIBLE AN AD FEATURING A BENT COAT HANGER ON BEHALF OF THE NATIONAL ABORTION RIGHTS ACTION LEAGUE SPURRED 90000 PEOPLE TO MAIL IN ALMOST 1 MILLION TO THE ABORTION RIGHTS GROUP HJ HEINZ CO CHANGED ITS TUNABUYING POLICY AFTER ADS URGING CONSUMERS TO SAVE DOLPHINS BY BOYCOTTING THE COMPANY'S STARKIST TUNA SIMILARLY BURGER KING CORP AGREED TO IMPORT LESS MEAT FROM LATIN AMERICAN AFTER A CAMPAIGN ACCUSED IT OF DESTROYING THE RAIN FOREST IN PURSUIT OF BEEF AND ADS ATTACKING SUPREME COURT NOMINEE ROBERT BORK EVEN CONTRIBUTED TO A NEW VERB BORKED IT IS HARD TO JUDGE JUST HOW EFFECTIVE SOME ADS ARE AS WITH ONE THAT ASSERTS THAT PRESIDENT BUSH KILLED MORE PEOPLE IN PANAMA THAN ITS EXLEADER MANUEL NORIEGA OTHERS FAIL TO ACHIEVE THEIR OBJECTIVE NORWAY FOR INSTANCE STILL PLANS TO KILL WHALES ALSO SOME TARGETS VIEW THE AGENCY AS A STRONGARMING EXTORTIONIST THEY ESPECIALLY RESENT THE OCCASIONAL TACTIC OF ATTACKING COMPANIES THAT AREN'T RESPONSIBLE FOR THE SIN ALLEGED IN THE AD BUT THAT COULD BRING INFLUENCE TO BEAR SOMETIMES THE TARGETS RETURN THE FIRE JESSICA MCCLINTOCK SHOT BACK LATE LAST YEAR WITH HER OWN FULLPAGE AD IN THE TIMES AFTER PUBLIC MEDIA WORKING FOR THE ASIAN IMMIGRANT WOMEN ADVOCATES CALLED THE SAN FRANCISCO DRESSMAKER MORALLY RESPONSIBLE FOR THE PLIGHT OF 12 CHINESE SEAMSTRESSES WHO GOT STIFFED FOR 15000 WHEN THEIR EMPLOYER WENT BELLY UP THE BANKRUPT COMPANY HAD BEEN SUPPLYING JESSICA MCCLINTOCK INC WITH DRESSES THAT COST ABOUT 5 AND SOLD FOR CLOSE TO 200 MS MCCLINTOCK'S AD BRANDED THE BOYCOTT CAMPAIGN WHICH INCLUDED THE HEADLINE JESSICA MCCLINTOCK SAYS LET THEM EAT LACE A SMEAR SHE ADDED I WILL NOT TOLERATE INTIMIDATION OR A BLATANT SHAKEDOWN PUBLIC MEDIA'S RESPONSE YET ANOTHER AD WHEN YOU SEE JESSICA MCCLINTOCK'S HOLIDAY WINDOWS THIS YEAR THINK ABOUT THE REALITY BEHIND THEM SWEATSHOP WOMEN FACING A COLD GRIM CHRISTMAS THE AGENCY'S GOFORTHETHROAT APPROACH IS HONED BY A SIMPLE STYLE BASIC GRAPHICS AND LARGE PHOTOS MORE LIKE A CONSERVATIVE MAGAZINE LAYOUT THAN A FLASHY AD MR GUNTHER DESCRIBES HIS APPROACH AS JOURNALISTIC ADDING THAT THE ADS' INFORMATION IS FROM NEWS REPORTS OR OTHER PUBLIC SOURCES AND IS FACTCHECKED BY NEWSPAPERS BEFORE BEING RUN IN 19 YEARS THE AGENCY HAS HAD ONLY ONE AD REJECTED FREE AND OPEN DEBATE IS IMPORTANT SAYS MR GUNTHER WE'RE IN THE BUSINESS OF BREAKING THE INFORMATION MONOPOLY OF CERTAIN LARGE CORPORATIONS THAT DON'T BEHAVE PROPERLY WE DEAL WITH THE TRUTH MR GUNTHER WHO COMPARES HIS 42000 SALARY TO THAT OF AN ENTRYLEVEL BUS DRIVER SAYS CHIEF EXECUTIVE OFFICERS HAVE CALLED HIM DIRECTLY AND THREATENED LEGAL ACTION NONE HAS EVER BEEN FILED THEY THINK THEY CAN BLUSTER AND BLUFF MR GUNTHER SAYS WE'RE CAREFUL WHEN WE DO AN AD WE CAN DEFEND IT AGGRESSIVELY LATELY THE AGENCY HAS BECOME INVOLVED IN A FREESHAMU CAMPAIGN SEEKING THE RELEASE OF THE KILLER WHALE FROM SEA WORLD IN SAN DIEGO IT IS SPONSORED BY ORCALAB A WHALE RESEARCH STATION IN BRITISH COLUMBIA AND AN ALLIANCE OF ANIMAL WELFARE GROUPS THE AD URGES A BUDWEISER BOYCOTT TO PRESSURE THE AQUATIC PARK OWNED BY BREWER ANHEUSERBUSCH COS TO RELEASE ITS STAR ATTRACTION INTO THE WILD MR GUNTHER SAYS HE ADVISED HIS CLIENT OF THE PROBABLE FUTILITY OF A BOYCOTT OF SUCH A MASSCONSUMER PRODUCT AS BUD AND THE BREWER SAYS ITS BUSINESS HASN'T BEEN AFFECTED INDEED MR GUNTHER ASSERTS HIS INTENT ISN'T TO HURT CORPORATIONS BUT REFORM THEM WE'RE NOT ANTICORPORATE MR GUNTHER SAYS YOU WANT TO HAVE A CORPORATION BEHAVE IN A RESPONSIBLE AND ACCOUNTABLE WAY SEGA OF AMERICA SELECTED A FIRST ROUND OF CONTENDERS FOR A NEW ADVERTISING EFFORT TARGETED AT CHILDREN 10 YEARS OLD AND YOUNGER BILLINGS ARE ESTIMATED AT 8 MILLION TO 10 MILLION ELEVEN CALIFORNIA AGENCIES ARE INVITED TO PITCH FIVE FROM THE LOS ANGELES AREA ARE CHIAT/DAY OMNICOM GROUP'S DDB NEEDHAM ROBERT ELEN & ASSOCIATES HAJJAR/KAUFMAN AND LORD DENTSU & PARTNERS A JOINT VENTURE OF YOUNG & RUBICAM AND DENTSU SIX SAN FRANCISCO CONTENDERS ARE INTERPUBLIC GROUP'S MCCANNERICKSON YOUNG & RUBICAM CITRON HELIGMAN BEDECARRE HOFFMAN/LEWIS MANDELBAUM MOONEY ASHLEY AND OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN THE AGENCY THAT SEGA PICKED LAST YEAR TO CREATE ADS FOR TEENAGE AND ADULT CUSTOMERS SEGA THE REDWOOD CITY CALIF UNIT OF SEGA ENTERPRISES LTD SAID IT WOULD NAME AS MANY AS SIX SEMIFINALISTS IN LATE SEPTEMBER TO COMPETE IN A CREATIVE PITCH WITH A FINAL DECISION EXPECTED IN OCTOBER 9309070026 930907 CREDIT RATINGS EQUITABLE RESOURCES INC NEW YORK MOODY'S INVESTORS SERVICE LOWERED THIS PITTSBURGH NATURAL GAS CONCERN'S DEBT RATINGS CITING EQUITABLE'S AGGRESSIVE BUT RISKY ACQUISITION STRATEGY AND SHORTTERM DEBT PHILOSOPHY THE RATING ON SENIOR UNSECURED DEBT WAS LOWERED TO SINGLEA2 FROM SINGLEA1 AND ON SUBORDINATED DEBT TO SINGLEA3 FROM SINGLEA2 THE COMPANY'S PRIME1 SHORTTERM RATING FOR COMMERCIAL PAPER WAS CONFIRMED AN EQUITABLE SPOKESMAN SAID THE NEW RATINGS ARE STILL IN THE BLUECHIP RANGE AND ARE INDICATIVE OF HIGH QUALITY WE REMAIN AMONG THE HIGHESTRATED COMPANIES IN OUR INDUSTRY WHILE MOODY'S NOTED THAT EQUITABLE'S ACQUISITION STRATEGY IS BALANCED AND WELLFOCUSED AND HAS A GOOD LIKELIHOOD OF SUCCESS IT SAID INCREASED RISKS ARE POSED BY THE COMPANY'S APPETITE FOR FURTHER ACQUISITIONS AND ITS DIVERSIFICATION AWAY FROM ITS TRADITIONAL APPALACHIAN BASE EQUITABLE'S PURCHASE OF LOUISIANA INTRASTATE GAS TAKES EQUITABLE INTO NEW UNPROVED TERRITORY WHILE THE RELATED GROWTH OF THE UNREGULATED GAS MARKETING BUSINESS ALSO ENTAILS POTENTIAL RISKS AND POTENTIAL OFFBALANCESHEET LIABILITIES EQUITABLE'S COMING EQUITY ISSUE COUPLED WITH INCREASED PRODUCTION AND HIGHER GAS PRICES SHOULD IMPROVE ITS DEBTPROTECTION MEASUREMENTS MOODY'S NOTED BUT IT SAID THE EFFORTS WON'T BE SUFFICIENT TO OFFSET THE INCREASED BUSINESS AND RISK SHORTTERM DEBT IS MORE THAN A QUARTER OF THE CAPITAL STRUCTURE WHILE EQUITY CONSTITUTES ABOUT 45 9309070024 930907 INTERNATIONAL BRIEF COCACOLA CO LATIN AMERICAN FRANCHISEE PLANS INITIAL STOCK OFFERING ONE OF COCACOLA CO'S LATIN AMERICAN BOTTLING FRANCHISES WILL GO PUBLIC LATER THIS MONTH WITH A 250 MILLION INITIAL PUBLIC OFFERING INVESTMENT BANKING SOURCES SAID FRIDAY PAN AMERICAN BEVERAGES INC REGISTERED IN PANAMA CONTROLS 19 OF COKE'S UNIT CASE VOLUME IN LATIN AMERICA COVERING AREAS WHICH ENCOMPASS 16 OF THE REGION'S POPULATION ITS FRANCHISES INCLUDE PARTS OF CENTRAL AND SOUTHEASTERN MEXICO SAO PAOLO BRAZIL AND COLOMBIA'S THREE LARGEST CITIES COKE HOLDS A 10 STAKE IN PAN AMERICAN THE OFFERING OF 115 MILLION SHARES EACH REPRESENTING ONE AMERICAN DEPOSITARY RECEIPT WILL BE MADE ALONGSIDE THE PLANNED INITIAL PUBLIC OFFERING OF COCACOLA FEMSA SA COKE'S JOINT BOTTLING VENTURE IN MEXICO WITH FOMENTO ECONOMICO MEXICANO SA FEMSA NINE MILLION OF THE PAN AMERICAN SHARES WILL BE OFFERED IN THE US WITH THE REMAINDER TO BE OFFERED IN EUROPE THE SHARES WILL BE LISTED ON THE NEW YORK STOCK EXCHANGE ACCORDING TO A PRELIMINARY PROSPECTUS LAZARD FRERES WILL BE LEAD UNDERWRITER WITH GOLDMAN SACHS & CO AND SMITH BARNEY PARTICIPATING 9309070023 930907 FOR US HIDDEN RISKS IN SOMALIA'S FEUDAL CHAOS BY ALBERTO R COLL IN RECENT WEEKS FORCES LOYAL TO SOMALI WARLORD MOHAMMED FARAH AIDID HAVE WOUNDED AND KILLED A NUMBER OF AMERICAN SERVICEMEN THE CLINTON ADMINISTRATION HAS SENT 400 ELITE RANGERS AND COUNTERTERRORIST COMMANDOS TO COMPLEMENT THE 4000 AMERICAN TROOPS ALREADY THERE AND DEFENSE SECRETARY LES ASPIN HAS ANNOUNCED THAT THE US WILL STAY IN SOMALIA UNTIL ORDER IS RESTORED IN MOGADISHU THE WARLORDS GIVE UP ALL HEAVY WEAPONS AND A NATIONAL POLICE FORCE FREE OF FACTIONALISM IS ESTABLISHED SOMETHING IS WRONG HERE WHEN THE BUSH ADMINISTRATION IN RESPONSE TO THE PUBLIC OUTCRY OVER WIDESPREAD HUNGER IN SOMALIA DECIDED TO LAUNCH A HUMANITARIAN INTERVENTION IT DID SO AFTER A CAREFUL AND INTENSE DEBATE OVER THE PURPOSES AND LIMITS OF SUCH AN OPERATION AS A PARTICIPANT IN THAT DEBATE I RECALL A CONSENSUS AMONG THE SENIOR CIVILIAN AND MILITARY OFFICIALS THAT THIS WOULD BE ONE OF THOSE RARE OCCURRENCES IN INTERNATIONAL POLITICS A CLASSIC HUMANITARIAN INTERVENTION PRECISELY BECAUSE THERE WERE NO SIGNIFICANT AMERICAN INTERESTS INVOLVED WE WOULD LIMIT OURSELVES TO RELIEVING HUNGER AND SUFFERING THE MUCH MORE COMPLEX TASK OF RESTORING SOME SEMBLANCE OF GOVERNANCE TO SOMALIA WAS TO BE LEFT TO AN INFORMAL COALITION OF INTERESTED PARTIES WORKING UNDER THE UMBRELLA OF THE UNITED NATIONS MOST OF THOSE PARTIES SUCH AS THE FRENCH THE ITALIANS AND THE PAKISTANIS HAVE MUCH MORE AT STAKE IN SOMALIA AS A CONSEQUENCE OF POLITICAL ECONOMIC AND RELIGIOUS TIES THAT ARE FAR MORE SUBSTANTIVE AND LONGSTANDING THAN OURS TO THE LAST DAY OF THE BUSH ADMINISTRATION EVERYONE CONCERNED BALKED AT ANY FORM OF MISSION CREEP THAT MIGHT GET THE US BOGGED DOWN IN SOMALIA'S STRIFE THE RELUCTANCE TO UNDERTAKE NATIONBUILDING IN SOMALIA DID NOT RESULT FROM MISPLACED CONSERVATISM ON THE PART OF THE BUSH ADMINISTRATION IT WAS INSTEAD THE CONSEQUENCE OF A SOBER APPRECIATION OF THE FACTS OF THE CASE SOMALIA IS A FEUDAL SOCIETY WHOSE POLITICAL LIFE IS SHAPED BY THE RELATIONS AMONG THE LEADING CLANS THE WAY TO BRING A MODICUM OF PEACE AND STABILITY TO SUCH A SOCIETY IS NOT BY TRYING TO REFASHION ITS SOCIAL AND POLITICAL INSTITUTIONS FROM THE BOTTOM UP AN UNFEASIBLE ENTERPRISE AT ANY RATE IT IS BY GIVING ALL THE EXISTING CLANS A SHARE IN A FUTURE POLITICAL ORDER THE WARLORDS INCLUDING GEN AIDID ARE PART OF THE BASIC POLITICAL MATERIALS WITH WHICH WE HAVE TO WORK THERE ARE NO LIBERAL DEMOCRATS WAITING IN THE WINGS ANYWHERE THIS WAS THE INITIAL UNDERSTANDING ON WHICH THE US TRANSFERRED ITS MISSION TO THE UN AT THE OUTSET OF THE CLINTON ADMINISTRATION UNFORTUNATELY THE UN TEAM LACKED THE MILITARY CLOUT AND POLITICAL PRESTIGE OF THE AMERICANS INEXPLICABLY IT HAS SHOWN LESS SKILL IN HANDLING ITS POLITICAL RELATIONS WITH THE WARRING FACTIONS THAN DID MR BUSH'S COMMANDER OF US TROOPS THERE GEN ROBERT JOHNSTON AND SO GEN AIDID CONVINCED THAT HE HAD NOTHING TO LOSE AND MUCH TO GAIN BY OPPOSING THE UN INTERVENTION HAS OPENED WAR IN RESPONSE THE UN HAS PRESSURED THE US FOR MONTHS TO UNDERTAKE A SERIES OF DRASTIC MILITARY ACTIONS AGAINST HIM THESE PRESSURES SHOULD HAVE BEEN EASY TO RESIST FOR MANY REASONS FIRST SOME OF THE PARTIES INVOLVED IN THE UN INTERVENTION NOTABLY THE FRENCH AND THE ITALIANS HAVE MORE AT STAKE IN SOMALIA THAN WE DO AND THEY POSSESS SPECIAL OPERATIONS FORCES THAT FOR THE PURPOSES AT HAND ARE AS CAPABLE AS THOSE OF THE US SECOND THE AMERICAN MILITARY HAS SPENT MORE THAN 1 BILLION IN THE SOMALIAN IMBROGLIO SO FAR THIS IS HARDLY A SMALL SUM ESPECIALLY SINCE SOMALIA RANKS QUITE LOW ON THE SCALE OF AMERICAN GLOBAL INTERESTS THIRD AS THE LEADING GREAT POWER OF THE INFORMAL DEMOCRATIC COALITION THAT DOMINATES WORLD POLITICS TODAY THE US SHOULD RESERVE ITS POLITICAL PRESTIGE AND STRATEGIC FOCUS FOR THOSE DANGERS THAT TRULY DESERVE OUR CLOUT SOMALIA IS NOT ONE OF THEM YET THE CLINTON ADMINISTRATION HAS DONE PRECISELY THE OPPOSITE IN SPITE OF THE ADVICE OF SOME OF ITS OWN PENTAGON APPOINTEES IT HAS CAVED IN TO THE PRESSURES FOR ESCALATION AND WADED FURTHER INTO THE QUAGMIRE OF SOMALIA'S FEUDAL CHAOS THE RISKS ARE MANY EVEN IF THE RANGERS SUCCEED IN CAPTURING GEN AIDID AND PUTTING HIM BEHIND BARS THE CHANCES ARE THAT MANY OF THE FORCES HE REPRESENTS WILL DIG IN THEIR HEELS AND INTENSIFY THEIR OPPOSITION WHAT BEGAN AS THE VIOLENT ANTICS OF A SOMALI HUEY LONG COULD EVOLVE INTO A POLITICAL MOVEMENT WITH STRONG ISLAMIC AND NATIONALIST OVERTONES MORE IMPORTANT THE US AND THE UN ARE GRADUALLY SLIPPING INTO THE RISKY BUSINESS OF SUPPORTING SOME FACTIONS OVER OTHERS THE FACTIONS THAT WILL BENEFIT FROM OUR INTERVENTION AGAINST GEN AIDID ARE NO MORE COMMITTED TO THE IDEALS OF LIBERAL DEMOCRACY THAN HE IS THEY WILL SIMPLY MAKE USE OF THE OPPORTUNITIES OUR ACTIONS ARE OPENING UP TO THEM AND PROCEED TO BEHAVE IN TRADITIONAL SOMALI FASHION ONCE THE US AND THE UN ARE OUT OF THE WAY EVEN WITHOUT THESE PROBLEMS THE US HAS OTHER FAR MORE PRESSING FOREIGN CONCERNS TO WHICH IT SHOULD TURN ITS ATTENTION AND ITS PRESTIGE THERE ARE OBVIOUSLY FAR GREATER DANGERS POSED TO AMERICAN INTERESTS BY SADDAM HUSSEIN'S CONTINUING CHALLENGES BY THE BALKANS WAR THAT COULD ENGULF SOME OF OUR NATO ALLIES AND BY IRAN'S CONTINUING EFFORTS TO ACQUIRE NUCLEAR WEAPONS AND BALLISTIC MISSILES AS TEMPTING AS IT MAY BE IN THE POSTCOLD WAR WORLD TO CONDUCT FOREIGN POLICY ON THE BASIS OF WHAT MAKES US FEEL GOOD OR WHAT SEEMS SUPERFICIALLY EASY TO UNDERTAKE WE NEED TO KEEP OUR PRIORITIES IN FOCUS PROVIDING HUMANITARIAN ASSISTANCE TO SOMALIA WAS A LAUDABLE ALBEIT COSTLY ENTERPRISE WORTHY OF A MAGNANIMOUS PEOPLE INVESTING IN SOMALIA AMERICAN PRESTIGE AND STRATEGIC ATTENTION THAT SHOULD BE GOING ELSEWHERE SETS A BAD PRECEDENT FOR WHAT WILL BE A DANGEROUS DECADE AHEAD MR COLL WAS PRINCIPAL DEPUTY ASSISTANT SECRETARY OF DEFENSE FROM 1990 TO 1993 HE IS CURRENTLY PROFESSOR OF STRATEGY AT THE US NAVAL WAR COLLEGE 9309070022 930907 ITALIAN MUTUAL FUNDS' NET INFLOW MILAN ITALIAN MUTUAL FUNDS REGISTERED A NET INFLOW OF 4019 TRILLION LIRE 251 BILLION IN AUGUST THE NATIONAL FEDERATION OF MUTUAL FUNDS ASSOGESTIONE SAID THE FIGURE WAS THE HIGHEST FOR SEVEN YEARS AND WAS WELL ABOVE JULY'S NET INFLOW OF 3085 TRILLION LIRE AUGUST WAS THE EIGHTH CONSECUTIVE MONTH OF A NET INFLOW OF FUNDS ASSOGESTIONE SAID IN ITS MONTHLY SALES REPORT THAT GROSS SALES TOTALED 5807 TRILLION LIRE IN AUGUST WHILE GROSS REDEMPTIONS WERE 1788 TRILLION LIRE TOTAL ASSETS OF THE FUNDS AMOUNTED TO 85608 TRILLION LIRE AT THE END OF LAST MONTH COMPARED WITH 78537 TRILLION LIRE AT THE END OF JULY ASSOGESTIONE SAID THE INCREASED INFLOW TO MUTUAL FUNDS WAS DUE IN PART TO LOWER INTEREST RATES ON GOVERNMENT SECURITIES 9309070021 930907 BUSINESS WORLD SYNTHETIC GOLF GRASS MAY BE A LITTLE GREENER BY TIM W FERGUSON THE PRIME GOLF SEASON WILL WIND DOWN NEXT MONTH IN MUCH OF THE COUNTRY ONLY TO PICK UP WHERE WINTERS ARE WARM BUT WHETHER IT'S DEEP SNOW OR DRY HEAT OR SOME LOCAL INFESTATION THE ELEMENTS JUST AREN'T FRIENDLY TO MAINTAINING THAT MANICURED GRASS IN MOST PLACES DURING MUCH OF THE YEAR AND VICE VERSA IT IS ARGUED THE SIERRA CLUB'S MAGAZINE THIS SUMMER DESCRIBED ENVIRONMENTAL DEPREDATIONS OF MUCH GOLF LANDSCAPING ESPECIALLY WHEN IT'S IMPLANTED ON SCENIC TERRAIN WHERE THE PROPER SOD IS ALIEN THE ENGAGING IF TENDENTIOUS ARTICLE NOTED SEVERAL LAWSUITS THAT HAVE BEEN FILED TO STOP COURSE DEVELOPMENTS RELIEF FROM ALL OF THESE HAZARDS MAY COME FROM SOMETHING UNNATURAL NAMELY ARTIFICIAL TURF IMPROVEMENTS IN THE TECHNOLOGY OF POLYFIBER PLOTS ARE ATTRACTING NOTICE PARTICULARLY FROM PEOPLE WHO WANT GOLF TO BE AS CONVENIENT AS THEIR BACKYARD OR NEARBY RANGE BUT DON'T WANT TO BE PENALIZED WITH HIGH COSTS IF THE PLANET ISN'T AT STAKE IN RECONCILING THIS TASTE FOR PLAY WITH VARIOUS HABITAT HANDICAPS THE POCKETBOOK PROBABLY IS GREENS ARE THE PART OF A GOLF LAYOUT MUST SUSCEPTIBLE TO SUBSTITUTION BECAUSE THEIR BENT GRASS IS KEPT SHORTER THAN GOD INTENDED IT IS ESPECIALLY EXPOSED TO SUN WIND FROST AND A VARIETY OF CRAWLING OR SPROUTING THREATS NOT TO MENTION THE POUNDING IT TAKES FROM TWOFOOTED TORMENTORS THE GREEN AND SURROUNDING AREAS ACCOUNT FOR HALF THE MAINTENANCE EXPENSES ON A TYPICAL COURSE KEEPING UP A PUTTING SURFACE ENTAILS NOT ONLY SKILLED GROUNDSKEEPING AND LOTS OF WATER BUT LOADS OF FUNGICIDES PESTICIDES AND FERTILIZERS THAT THESE DAYS REQUIRE A POCKETFUL OF PERMITS PRIOR TO APPLICATION SO FOR THE AVID GOLFER WHO WANTS ALONGSIDE HIS HOUSE A GREEN TO PUTT ON OR SHOOT AT OR THE PRACTICECENTER OWNER WHO CAN'T PRORATE THE UPKEEP OVER 18 HOLES THE WAY A CHAMPIONSHIP COURSE CAN SYNTHETIC MIGHT BE A SELL THE PROSPECTS HAVE IMPROVED NOW THAT THESE IMITATION GREENS CAN HOLD INCOMING SHOTS AND PROVIDE TRUER ROLLS THAN ACTUAL TURF MANUFACTURERS OF ARTIFICIAL GRASS HAVE MADE ADVANCEMENTS BUT THE BIG GAINS IN SIMULATING GOLFCOURSE CONDITIONS HAVE COME FROM ADDITION OF SAND OR OTHER AGGREGATE TO THE TURF ALONG WITH DEVELOPMENT OF A REALISTIC SOIL BASE THIS HAS PERMITTED A BETTER REPLICATION OF NATURE THAN THE EARLY SIMPLE ASTROTURF SURFACES NOW A FEW SMALL COMPANIES SPECIALIZING IN THE FIELD ARE BUSY TRYING TO LINE UP PROMINENT USERS AND ENDORSERS FOR THEIR PROPRIETARY WARES BEFORE BIG TURF MAKERS CAN SUCCEED IN CORNERING THIS APPLICATION OF SYNTHETIC SPORT SURFACES US INDOOR GOLF OF SOUTH SAN FRANCISCO SCORED A COUP IN 1991 WHEN ONE OF ITS TOUR TRUE GREENS WAS INSTALLED AT THE WHITE HOUSE FOR PRESIDENT BUSH IT ALSO HAS PLACED A PLOT AT AN INDOOR TESTING FACILITY FOR TITLEIST PUTTERS NEAR THE RENOWNED GOLFINGEQUIPMENT CONCERN'S HEADQUARTERS IN MASSACHUSETTS PAUL BARRATT THE TESTAREA SUPERINTENDENT SAYS AN ADVANTAGE OF THIS TYPE OF GREEN IS THAT IT CAN BE ADJUSTED FOR VARIOUS SPEEDS BY BROOMING THE AGGREGATE THIS FACET ALSO APPEALS TO TOURING GOLF PROS WHO WANT TO BE ABLE TO APPROXIMATE NEAR THEIR HOMES THE KIND OF PUTTING SURFACE THEY WILL FACE AT A FORTHCOMING EVENT OTHER BACKYARD BUFFS ATTEST TO THE ARTIFICIAL EDGE CLAYTON ROHRBACH A MANAGING DIRECTOR AT MORGAN STANLEY BOUGHT A GREEN FOR HIS GREENWICH CONN HOME FROM EAST COASTBASED ADVANTAGE DEVELOPMENT THE 30BY30FOOT SURFACE COST HIM LESS THAN IT WOULD TAKE TO MAINTAIN NATURAL GRASS IN LIKE SHAPE FOR A YEAR PRICES FOR SYNTHETIC GREENS RUN 5 TO 15 PER SQUARE FOOT DEPENDING ON THE COMPANY AND THE JOB AFTER THIS WINTER'S SNOW MELTED MR ROHRBACH SAYS HE PICKED UP PRACTICE AT HIS HOLE JUST WHERE HE'D LEFT OFF THE PREVIOUS SEASON HE'S SOLD A FEW OF HIS NEIGHBORS ON THE PRODUCT RECENTLY OPENED GARDEN STATE GOLF CENTER WEST OF NEWARK NJ ALSO WENT WITH ADVANTAGE FOR ITS ONE PUTTING AND SEVEN TARGET SURFACES IN ORDER TO SAVE BUCKS A REAL GREEN WOULD EAT US ALIVE SAYS KEITH DONOVAN PART OF THE OWNING CLAN THAT INCLUDES HIS FATHER RAY A FORMER US SECRETARY OF LABOR CUSTOMERS LIKE THE PRODUCT HE SAYS ALTHOUGH SOME SAY IT IS FAST ANOTHER CONSIDERATION FOR A PUBLIC FACILITY CATERING TO FAMILIES IS THAT SMALL CHILDREN MAY BE EXPOSED TO HARMFUL CHEMICALS IF THEY COME IN CONTACT WITH A NATURAL PUTTING GREEN AND PUT THEIR FINGERS IN THEIR MOUTHS STANDARD DELAYS IN USE OF GREENS AFTER APPLICATION OF POISONS IS THOUGHT TO PROTECT ADULTS FROM SERIOUS RISK MR DONOVAN SAYS SAFETY WAS A SECONDARY FACTOR AT GARDEN STATE THE BASIC ENVIRONMENTAL ARGUMENT AGAINST GOLFCOURSE GRASSTHAT THE SUBSTANCES APPLIED TO IT LEACH INTO THE WATER TABLE AND DRAIN INTO WATERWAYS IS REJECTED BY JEFF NUS A HORTICULTURE PHD WHO IS TECHNICAL EDITOR FOR THE GOLF COURSE SUPERINTENDENTS ASSOCIATION IN LAWRENCE KAN ITS MEMBERS ARE FIRST AND FOREMOST AGRONOMISTS HE SAYS SYNTHETICS HE JOKES ARE A HERESY IT'S LIKE EATING IMITATION CHEESE AND THE GREENS WELL THEY'RE THE HIGHEST ART FORM OF THE TRADE DR NUS ALSO SAYS COSTS FOR MAINTAINING NATURAL PUTTING SURFACES ARE COMPETITIVE WHEN SPREAD OVER 18 HOLES AT ROUGHLY 125 A SQUARE FOOT DEPENDING ON TERRAIN AND CLIMATE GOLFCOURSE GREENS AVERAGE ABOUT 5500 SQUARE FEET FEW COURSES HAVE EXPERIMENTED YET WITH ARTIFICIAL GREENS ALTHOUGH THE SELLERS SAY THAT DAY IS COMING IN THE MEANTIME TOUR TRUE ALSO FEATURES A TEEBOX SURFACE THAT IS SUPERIOR TO WHATEVER GRASS IS TO BE ON MANY A PUBLIC COURSE TEEING AREA IT IS DESIGNED TO ABSORB THE IMPACT OF A CLUB UNLIKE THE CARPETS AT MANY DRIVING RANGES BUT ISN'T USED AT THOSE FACILITIES IN THE US BECAUSE THE SPOTS WOULD GET TOO WORN TOUR TRUE CAME TOGETHER IN THE LATE 1980S AFTER IRVING BOOKSPAN A PACIFIC STOCK EXCHANGE TRADER INITIALLY TRIED WITH US INDOOR GOLF TO MARKET VIDEO SIMULATION OF PLAY ON REAL COURSES THAT BUSINESS IS STILL OUT THERE BUT MR BOOKSPAN THOUGHT THAT HIS IDEA FOR A REALISTIC PUTTING SWARD WAS THE BEST WAY TO BRING THE GAME OF GOLF INDOORS FOR YEARROUND PRACTICE AND SOCIALIZING THE BREAKTHROUGH HE SAYS WAS NOT IN THE GREEN FIBERS BUT WHAT WAS DEVELOPED TO FILL BETWEEN THEM ALL THE SYNTHETIC TURF DOES IS HOLD THE AGGREGATE IN PLACE GOLF BEING AS TRADITIONALIST AS ANY GAME AROUND ACCEPTANCE OF SYNTHETICS MAY NOT KEEP PACE WITH INNOVATION ARTIFICIAL GREENS ARE STILL BARELY A 1 MILLION A YEAR INDUSTRY BUT AS THE DEMAND FOR PLAYING SURFACES CONTINUES TO RISE AND THE LIMITS OF NATURE AND THE LAW BOOST THE TAB FOR STICKING TO THE OLD WAYS ENTREPRENEURIAL DRIVE AND SCIENTIFIC SAVVY MAY DISCOVER A BETTER APPROACH TO THE PIN 9309070020 930907 BUSINESS BRIEF REUTERS HOLDINGS PLC TENDER OFFER TURNS OUT 36 OF FIRM'S ORDINARY SHARES REUTERS HOLDINGS PLC SAID IT RECEIVED TENDERS FOR 36 OF ORDINARY SHARES UNDER A TENDER OFFER THAT CLOSED AUG 25 IN A NEWS RELEASE THE COMPANY SAID IT RECEIVED TENDERS FOR 1539 MILLION SHARES SHAREHOLDERS WHO TENDERED SHARES IN EXCESS OF THE ENTITLED AMOUNT 58 OF BENEFICIAL HOLDINGS REUTERS HAS SAID WOULD HAVE THE EXCESS TENDERS ACCEPTED PRO RATA TO THE TOTAL NUMBER OF SHARES TENDERED IN EXCESS OF ENTITLED AMOUNTS BASED ON THE NUMBER OF TENDERS RECEIVED THE INTERNATIONAL NEWS AGENCY SAID IT PLANS TO PURCHASE 95 OF SHARES TENDERED IN EXCESS OF THE 58 ENTITLEMENT THE PROPOSED REPURCHASE IS SUBJECT TO THE PASSING OF A SPECIAL RESOLUTION BY SHAREHOLDERS WHICH WILL BE CONSIDERED AT A SPECIAL MEETING TO BE HELD FRIDAY IF THE RESOLUTION PASSES THERE WILL BE A TOTAL RETURN OF CASH TO SHAREHOLDERS OF 350 MILLION 5259 MILLION 9309070019 930907 LEISURE & ARTS ON SPORTS SEEDS OF DEFEAT BY FREDERICK C KLEIN NEW YORK WHAT DO WOMEN REALLY WANT IF THEY ARE TENNIS FANS THEY WANT THE SAME THINGS MEN FANS DO TO WIT BUT PEOPLE WHO WISH FOR THE ABOVE RISK GETTING IT THERE WERE SO MANY FIRSTWEEK UPSETS AT THE US OPEN ON THE GREEN CEMENT AT FLUSHING MEADOWS THAT MANY OF THE MATCHES IN THE TOURNEY TO COME WILL BE CONTESTED BY WHO'S HE TYPES INSTEAD OF WHO'S WHOS ALMOST ALL THE SEED TRAMPLING CAME ON THE MEN'S SIDE OF THE DRAW THE WOMEN AS USUAL BEING MORE RESPECTFUL OF THEIR BETTERS THE SOLE REAL UPSET AMONG THE FEMMES CAME LAST TUESDAY WHEN JENNIFER CAPRIATI THE SEVENTH SEED WAS BEATEN BY LEILA MESKHI A SOSO EXSOV FROM GEORGIA 16 64 64 CAPRIATI'S DEFEAT WAS ESPECIALLY UPSETTING TO MANY BECAUSE IN THE FOURTH YEAR OF A PROFESSIONAL CAREER THAT BEGAN AMID MUCH BALLYHOO WHEN SHE WAS ONLY 13 SHE WAS SUPPOSED TO BE AT THE POINT WHERE SHE'D BE ASSAULTING HER SPORT'S SUMMIT YET AGAINST MESKHI IT BECAME MORE CLEAR THAN EVER THAT HER GAME IS ONEDIMENSIONAL AND NOT VERY SMART THE STRAPPING FLORIDIAN HITS HARD FROM THE BASELINE BUT IF HER FOE PERSISTS IN RETURNING HER SHOTS AS MESKHI DID SHE'S AT A LOSS FOR ALTERNATIVES AT A POSTMATCH PRESS CONFERENCE DURING WHICH SHE LOOKED AT THE CEILING A LOT CAPRIATI WAS ASKED IF FOR VARIETY'S SAKE SHE MIGHT HAVE TRIED LURING HER HUMANBACKBOARD OPPONENT TO THE NET WITH CHIPS OR DROP SHOTS WITH THE IDEA OF PASSING HER YEAH WELL WHEN YOU ARE MISSING SO MANY BALLSYOU DON'T WANT TO TAKE TOO MANY CHANCES SHE REPLIED BETTER TO GO ON AS BEFORE AND LOSE IN FAIRNESS IT SHOULD BE NOTED THAT THE SEEDED MEN WHO FELL ALSO WENT DOWN WITH THEIR USUAL GUNS FIRING ONLY TO FIND THE GUYS ACROSS THE NET WERE FIRING THEIRS BETTER THE LIST OF THE NOLONGERWITHUS IS HEADED BY STEFAN EDBERG THE TWOTIME DEFENDING CHAMP AND NO 3 SEED HE WAS A SECONDROUND VICTIM OF KAREL NOVACEK THE CZECH VETERAN FIRSTROUND CASUALTIES WERE NO 5 SERGI BRUGUERA NO 6 MICHAEL STICH NO 9 PETR KORDA NO 13 IVAN LENDL AND NO 16 ANDRE AGASSI NO 11 GORAN IVANISEVIC JOINED EDBERG IN SECONDROUND DEFEAT THAT FIVE SEEDS DIDN'T SURVIVE ROUND ONE WAS AN OPEN RECORD DITTO FOR THE SEVEN WHO DIDN'T MAKE IT PAST ROUND TWO NOT ALL OF THE ABOVE LOSSES WERE ESPECIALLY SURPRISING BRUGUERA WON LAST JUNE'S FRENCH OPEN ON THE CLAY OF ROLAND GARROS STADIUM IN DAZZLING STYLE BUT ACTS LIKE HE'S SICK TO HIS STOMACH WHEN PLAYING ON ANY OTHER SURFACE AND PROFESSED ACTUAL ILLNESS AFTER HIS PERFUNCTORY PERFORMANCE HERE LENDL A THREETIME WINNER IN THESE PRECINCTS BUT INJURYPLAGUED AT AGE 33 RETIRED WITH A SORE KNEE IN THE THIRD SET OF HIS MATCH AGAINST THE AUSTRALIAN NEIL BORWICK NOVACEK EDBERG'S CONQUEROR HAD BEEN A TOP10 PLAYER IN THE RECENT PAST AND HAS CAPTURED A DOZEN PROTOUR EVENTS IVANISEVIC THE CROATIAN BLASTER WAS A WIMBLEDON FINALIST LAST YEAR BUT IS AS ONEDIMENSIONAL IN HIS WAY AS CAPRIATI IS IN HERS HE ADMITTED AS MUCH AFTER HIS FRIDAY LOSS TO CARLOS COSTA A SPANISH CLAYCOURTER WHOSE GAME WAS AS SUBTLE AS HIS WAS SIMPLE IF MY FIRST SERVE IS IN OKAY I GET AN ACE SAID GORAN IF IT'S OUT I'M IN TROUBLE BUT BEYOND THAT IS THE UNDENIABLE FACT THAT MEN'S TENNIS THESE DAYS IS AS DEEP AS THE OCEAN IF NOT ALSO AS HIGH AS THE SKY THE PLAYER WHO BEAT STICH IS HENRIK HOLM A GANGLY 25YEAROLD FROM SWEDEN WHO WITH SCARCELY ANYONE NOTICING CREPT FROM A 129TH WORLD RANKING AT THE END OF 1991 TO A CURRENT 23RD HE PLAYED HERE WEARING A BASEBALL CAP WITH ALL BUT TWO INCHES OF ITS BILL CHOPPED OFF AND DID A LITTLE SPLAYFOOTED DANCE BEFORE RECEIVING SERVE THE GUY WHO BEAT AGASSI MALE TENNIS'S ANSWER TO MADONNA WAS THOMAS ENQVIST A HEADBANDWEARING 19YEAROLD SWEDE WHO WAS THE WORLD'S TOPRANKED JUNIOR IN 1991 BUT SPENT THE PAST SEASON LOSING FIRSTROUND MATCHES IN JUST ABOUT EVERY PROFESSIONAL BIGTIME TOURNEY HE ENTERED 12 OF 16 THROW IN THE LIKES OF DANIEL VACEK THE 22YEAROLD CZECH RANKED NO 96 WHO MADE SECONDSEEDED PETE SAMPRAS SWEAT APLENTY ON THURSDAY BEFORE BOWING IN ROUND TWO AND JAMIE MORGAN THE 67TH RANKED AUSTRALIAN SERVEANDVOLLEYER WHO BEAT THE CANNY COSTA IN THREE TIEBREAKER SETS ON SUNDAY TO ADVANCE TO THE ROUND OF 16 AND YOU HAVE A POTENT SECOND STRING YOU ARE NOT VERY VERY HAPPY IF YOU HAVE TO PLAY A SEEDED PLAYER OR VERY GOOD PLAYER BUT EVERYBODY IN THE MAIN DRAW IS GOOD SO I MEAN SOMEBODY HAS TO PLAY THEM SO IT IS A LITTLE BIT FUN TO PLAY VERY GOOD PLAYERS ALSO YOU PLAY ON CENTER COURT SAID ENQVIST EXPRESSING THE UNDERDOG'S ETHOS I THINK ENQVIST LOST TO SAMPRAS YESTERDAY THE US OPEN HAS LONG BEEN A SCENE OF UPSETS COMING AS IT DOES AT SEASON'S END IT OFTEN FINDS ITS FAVORITES SUFFERING FROM FATIGUE INJURIES ENNUI OR ALL THREE AND ITS UNDERDOGS EAGER FOR A LAST BASH AT SUCCESS A RECENT WRINKLE IS THE GAME'S HIGHTECH EQUIPMENT WHICH MAKES ALMOST EVERY MALE CONTESTANT A 100PLUSMPH SERVER ANYBODY WHO CAN SERVE HARD CONSISTENTLY IS DANGEROUS SAYS VITAS GERULAITIS AN OPEN FINALIST IN 1979 AND NOW A TV COMMENTATOR THERE ARE A LOT OF DANGEROUS GUYS OUT HERE TOO MANY SAYS OLD CAMPAIGNER AND PRESENT COACH NIKKI PILIC TAKE A LITTLE AIR OUT OF THE BALL AND MIX SOME SAND WITH THE CEMENT TO SLOW THE COURTS AND YOU'LL HAVE MORE FORMFUL TENNIS ALSO BETTER HE ASSERTS BUT FOR NOW THE GAME'S GODS MUST COPE WITH THINGS THE WAY THEY ARE AND NOT LOOK TOO FAR AHEAD THAT WAS UNDERLINED AFTER EDBERG'S DEFEAT WHEN THE CHAMP OPINED IT WAS TOO BAD HE'D LOST BECAUSE HE THOUGHT HE HAD A REASONABLE DRAW AHEAD NOVACEK PROBABLY THOUGHT SO TOO WHEN HE NOTED THAT CHUCK ADAMS RANKED 76TH WAS HIS NEXT FOE ADAMS BEAT NOVACEK AND PROBABLY FIGURED HE COULD DO WORSE THAN MEET ALEXANDER VOLKOV A LIGHTLY MEDALED 14TH SEED IN HIS NEXT MATCH VOLKOV BEAT ADAMS AND 9309070018 930907 TECHNOLOGY IBM SLATES IMPROVED LINE OF AS/400 MINICOMPUTERS NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS EXPECTED TODAY TO UPGRADE ITS AS/400 LINE OF MINICOMPUTERS HOPING TO TURN AROUND PERSISTENTLY DISAPPOINTING RESULTS IN A CRUCIAL MARKETPLACE MINICOMPUTERS AND PRODUCTS THAT GO WITH THEM MAKE UP ABOUT 20 OF IBM'S SALES EARLIER THIS YEAR IBM PREDICTED THE WORLDWIDE MINICOMPUTER MARKET WOULD GROW 1 TO 2 THIS YEAR AFTER SEVERAL YEARS OF 4 TO 5 GROWTH RATES AND A 4 DECLINE LAST YEAR BUT THE COMPANY BASED IN ARMONK NY REPORTED AN UNSPECIFIED DROP IN AS/400 SALES FOR THE FIRST HALF OF 1993 IBM DEFINES THE MINICOMPUTER MARKET AS COMMERCIAL COMPUTERS FOR MULTIPLE USERS COSTING BETWEEN 15000 AND 1 MILLION THE NEW AS/400 MODELS ARE EXPECTED TO INCLUDE MACHINES DESIGNED TO BE USED AS SERVERS OR CENTRAL STORAGE DEVICES FOR AN OFFICE WORK GROUP IBM HAS BEEN PUSHING HARD TO PROMOTE A MODEL OF COMPUTING KNOWN AS CLIENTSERVER IN WHICH GROUPS OF WORKERS SHARE A CENTRAL REPOSITORY IBM INTRODUCED THE AS/400 IN 1988 TO GREAT SUCCESS AND HAS BROUGHT OUT NEW MODELS ABOUT ONCE OR TWICE A YEAR SINCE THEN 9309070016 930907 REVIEW & OUTLOOK EDITORIAL FEEDING GROUND LOS ANGELES IS WITNESS TO A CLASSIC EXAMPLE OF HOW LOBBYING FOLLOWS PUBLIC MONEY OR POWER THE LOCAL METROPOLITAN TRANSIT AGENCY IS NOW WHERE THE ACTION IS WITH A 37 BILLION BUDGET MUCH OF IT FROM US TAXPAYERS AT A TIME WHEN MOST OTHER GOVERNMENT AGENCIES IN SOUTHERN CALIFORNIA ARE HAVING TO CONTRACT BILL BOYARSKY OF THE LOS ANGELES TIMES AFTER MORE THAN A DECADE OF COVERING TRANSIT BOARD MEETINGS NOTES THAT THEY ARE NOW PACKED WITH FAVORSEEKERS WHERE ONCE THERE WAS NONE THE TOTAL OF 1234 REGISTERED MTA LOBBYISTS EXCEEDS THE NUMBER AT THE STATE CAPITAL IN SACRAMENTO THE POINT MAKES ITSELF IF THE PEROTIANS AND OTHER OPPONENTS OF SPECIAL INTERESTS WANT TO GET RID OF THE ANTS THEY MUST FIRST SEAL THE FOOD AT THE PICNIC 9309070015 930907 REGULATORY CHOKEHOLD THE LESSONS OF AT&T'S CELLULAR MOVE BY PETER HUBER STATE GOVERNMENTS MAY NOT REALIZE IT YET BUT THEIR REVENUES ARE ABOUT TO BE CUT BY 34 BILLION THE CUTS WERE ALREADY IN THE WORKS BUT AT&T'S PURCHASE OF MCCAW CELLULAR COMMUNICATIONS CO MAKES THEM INEVITABLE IN THE TELECOMMUNICATIONS INDUSTRY TECHNOLOGY IS DISMANTLING A HUGE REDISTRIBUTIVE REGULATORY EDIFICE THAT HAS STOOD IN THE STATES FOR ALMOST 100 YEARS AT&T IS PAYING 126 BILLION FOR MCCAW IT SEEMS LIKE A LOT BUT AT&T SPENDS THAT KIND OF MONEY ALL THE TIME EVERY YEAR AT&T SENDS A 14 BILLION CHECK OUT INTO BUREAUCRACYSPACE THAT SUM IS CERTIFIED BY ACCOUNTANTS AT THE FEDERAL COMMUNICATIONS COMMISSION AND THEN DELIVERED TO LOCAL PHONE COMPANIES THE LOCAL COMPANIES MAY SPEND THE MONEY ON WHAT THEY PLEASE AS LONG AS STATE REGULATORY COMMISSIONS ARE PLEASED ALSO THE 14 BILLION OSTENSIBLY COMPENSATES LOCAL TELEPHONE COMPANIES FOR ORIGINATING OR TERMINATING AT&T CALLS AT&T RAISES THE MONEY WITH A 55CENTAMINUTE CHARGE ON INTERSTATE CALLS THAT FAR EXCEEDS ACCESS COSTS LOTS OF OTHER COMPANIES INCLUDING MCCAW INTERCONNECT WITH LOCAL PHONE COMPANIES FOR MUCH LESS IF THEY PAY FOR INTERCONNECTION AT ALL STATE REGULATORS SPREAD THE TAKE AMONG TELEPHONE SUBSCRIBERS PRETTY MUCH AS THEY SEE FIT THEY REDISTRIBUTE AN ADDITIONAL 15 BILLION A YEAR EARNED BY LOCAL COMPANIES ON OVERPRICED INSTATE TOLL CALLS AND ANOTHER 5 BILLION OF OVERPRICED ACCESS CHARGES IS KICKED IN BY MCI AND OTHER LONGDISTANCE CARRIERS THIS 34 BILLION TOTAL REPRESENTS ALMOST HALF OF LOCAL EXCHANGE REVENUES THE BEAUTY OF IT FROM THE STATE COMMISSIONERS' POINT OF VIEW IS THAT THE 34 BILLION APPEARS ON NOBODY'S TAX RETURN AND IN NO LEGISLATURE'S BUDGET BUT THE STATE REGULATORS' DAYS ARE NUMBERED AT&T'S ULTIMATE GOAL IT HAS TOLD THE FCC IS THE PROVISION OF AFFORDABLE NATIONWIDE RADIOBASED TELEPHONES WITH FEATURES AND QUALITY COMPARABLE WITH THE WIRELINE NETWORK AND WITH CAPACITIES TO BYPASS THE LOCAL LANDLINE NETWORK ACQUIRING MCCAW WHOSE SERVICE AREA ALREADY ENCOMPASSES 61 MILLION AMERICANS IS A FIRST BIG STEP IN THAT DIRECTION NEXT YEAR THE FCC WILL OPEN UP BIDDING FOR SPECTRUM SEGMENTS TO BE USED BY A NEW GENERATION OF PERSONAL COMMUNICATIONS SERVICES WHICH WILL INCLUDE LIGHTWEIGHT WIRELESS PHONES WIRELESS EMAIL PERSONAL DIGITAL ASSISTANTS AND CAR ALARMS YOU CAN BET THAT AT&T WILL BID ANOTHER 14 BILLION IF IT MUST TO FILL IN ITS WIRELESS MAP PRICES OF WIRELESS AND LANDLINE SERVICE WILL THEN CONVERGE QUICKLY FOR NOW A LOCAL CELLULAR CALL AIR TIME IS EXPENSIVE 40 CENTS A MINUTE REGULAR LONGDISTANCE SERVICE RUNS ABOUT 20 CENTS A MINUTE AND LOCAL LANDLINE SERVICE MASSIVELY SUBSIDIZED BY LONGDISTANCE REVENUES IS ALMOST FREE BUT WITH NEW TECHNOLOGY BACKED BY THE CHECKBOOKS AND THE TECHNICAL EXPERTISE OF AT&T MOTOROLA ERICSSON QUALCOMM AND OTHERS THE PRICE OF WIRELESS IS GOING TO PLUMMET SO WILL THE LANDLINE SUBSIDIES MODERN WIRELESS NETWORKS USE NUMEROUS LOWERPOWER TRANSMITTERS EACH SERVING SMALL CELLS LINKED TOGETHER OVER LANDLINE NETWORKS IT'S ALWAYS POSSIBLE TO INCREASE THE CAPACITY OF THESE NETWORKS BY SPLITTING UP LARGER CELLS INTO SMALLER ONES DIGITAL RADIO WHICH IS JUST NOW BEING DEPLOYED PROVIDES AN ADDITIONAL BOOST THE CELLULAR SYSTEMS IN LOS ANGELES FOR EXAMPLE CAN SERVE 700000 USERS DIGITAL RADIO WILL BOOST THEIR CAPACITY TO 14 MILLION AND NEXT YEAR THE FCC WILL ALLOCATE AN ADDITIONAL 300 MEGAHERTZ OF THE SPECTRUM FOR WIRELESS SERVICES TO PUT THAT IN PERSPECTIVE MCCAW CURRENTLY USES 25 MEGAHERTZ BY THE END OF THE DECADE WIRELESS NETWORKS ARE GOING TO BE HUNDREDS OF TIMES MORE CAPACIOUS THAN THEY ARE NOW PRICES WILL DROP ACCORDINGLY WE ARE WELL BEYOND PIEINTHESKY SPECULATION HERE MCCAW IS ALREADY CONDUCTING TRIALS OF PERSONAL COMMUNICATIONS SERVICES IN AT LEAST 10 CITIES AT&T HAS TRIALS UNDER WAY IN BOSTON LOS ANGELES AND ATLANTA AND THE COMPANY HAS APPLIED FOR ADDITIONAL LICENSES TO SERVE THE COUNTRY'S 70 LARGEST URBAN AREAS MCI HAS FORMED A CONSORTIUM OF 150 COMPANIES TO PROVIDE PERSONAL COMMUNICATIONS SERVICES NATIONWIDE NEXTEL WILL BEGIN COMMERCIAL OPERATION IN LOS ANGELES THIS FALL AND WILL SERVE MOST OF CALIFORNIA IN 1994 THE WIRELESS REVOLUTION IS GOING TO SEND MANY STATE COMMISSIONERS INTO RETIREMENT WIRELESS IS LARGELY UNDER FEDERAL NOT STATE JURISDICTION BOTH THE FCC AND CONGRESS HAVE MADE CLEAR THAT WITH FIVE TO 10 WIRELESS COMPETITORS IN EACH MARKET RATES WON'T BE REGULATED FREE OF RATE REGULATION WIRELESS CARRIERS WON'T SOAK HEAVY USERS OF TOLL SERVICES TO FLOAT LIGHT USERS THEY WON'T MILK BUSINESSES TO FEED RESIDENCES THEY WON'T TAX CITIES TO SPEND IN THE COUNTRY THEY WON'T OFFER UNIVERSAL SERVICE AT A SINGLE FLATRATE ALLYOUCANSPEAK PRICE OBLIVIOUS OF ACTUAL COSTS WHAT THEY WILL DO IS STRUCTURE NEW BUNDLES OF SERVICE TO ATTRACT HIGHREVENUE CUSTOMERS MCCAW ALREADY OFFERS TOLLFREE CALLING ON ITS CELLULAR NETWORK IN WHAT IT DUBS THE CITY OF FLORIDA OTHER CELLULAR COMPANIES HAVE ESTABLISHED VERY LARGE LOCAL CALLING AREAS SOME EVEN PROVIDE CHUNKS OF FREE LONGDISTANCE CALLING ANYWHERE IN THE COUNTRY AT 40 CENTS A MINUTE FOR BASIC AIR TIME FREE LONGDISTANCE CAN BE VERY PROFITABLE AS THE COSTS OF AIR TIME DROP THE FREEBIES AND THE PROFITS MAY WELL SWITCH PLACES YOU'LL SEE AT&T/MCCAW OFFERING YOU A FREE HANDSET AND AIR TIME IF YOU MAKE 50 A MONTH IN LONGDISTANCE CALLS TO COLLECT THAT SAME 50 TODAY AT&T HANDS 20 OVER TO THE REGULATORS MUCH OF IT TO SUBSIDIZE PEOPLE WHO HARDLY USE AT&T'S SERVICE AT ALL SO AT&T CURRENTLY DIVERTS FOUR TITHES OF ITS LONGDISTANCE INCOME TO GOOD WORKS FROM HERE ON OUT AT&T'S FAVORITE LOCAL CHARITY IS GOING TO BE MCCAW AT&T WILL ASSURE ANYONE WHO CARES TO LISTEN THAT MOST OF ITS CUSTOMERS ARE STILL HOPELESSLY DEPENDENT ON THE LANDLINE NETWORK BUT IN TELECOMMUNICATIONS MOST CUSTOMERS DON'T MATTER THE CUSTOMERS WHO MATTER ARE THE 10 WHO IN FACT GENERATE 90 OF TELEPHONE REVENUES THE 12 MILLION CELLULAR PHONES NOW IN USE AREN'T MUCH COMPARED WITH THE 140 MILLION LANDLINES BUT THEY ARE ALREADY A BIG DEAL WHERE THEY MATTER AMONG THE 35 MILLION BUSINESS SUBSCRIBERS TO THE LANDLINE NETWORK AT&T/MCCAW WILL BE CONTACTING GM ABOUT NEW WIRELESS PHONES LONG BEFORE IT CONTACTS AUNT GWENDOLYN IN MISSOULA IMMEDIATELY AFTER THE 1984 BELL BREAKUP THE FCC ORDERED SOME 10 BILLION OF FEES REALLOCATED MOST OF IT FROM PERMINUTE PREMIUMS ON TOLL CALLS TO FLATRATE CHARGES 6 FOR BUSINESSES 350 PER MONTH FOR RESIDENCES INCLUDED ON YOUR BASIC MONTHLY BILL THE COMING OF AGE OF WIRELESS PUTS ANOTHER 34 BILLION IN PLAY REDUCED TO A PERHOUSEHOLD AVERAGE ABOUT 20 A MONTH WILL BE PRIED FROM THE ADHESIVE HANDS OF LOCAL REGULATORS AND RETURNED TO THE HURLY BURLY OF THE MARKET THINK OF IT AS THE MARKET'S ANSWER TO THE NEW GASOLINE TAX MR HUBER IS A COAUTHOR OF GEODESIC NETWORK II 1993 REPORT ON COMPETITION IN THE TELEPHONE INDUSTRY 9309070014 930907 TECHNOLOGY BRIEF MICROSOFT CORP EC TO INVESTIGATE CHARGES OF UNFAIR TRADE PRACTICES MICROSOFT CORP REDMOND WASH SAID THE EUROPEAN COMMUNITY PLANS TO INVESTIGATE CHARGES OF UNFAIR TRADE PRACTICES LODGED BY ITS RIVAL NOVELL INC PROVO UTAH MICROSOFT SAID IT WAS NOTIFIED BY THE EC THAT NOVELL FILED A LEGAL ACTION BEFORE THE TRADE BODY ALLEGING AMONG OTHER THINGS THAT MICROSOFT'S METHODS OF LICENSING ITS MSDOS OPERATING SYSTEM TO COMPUTER MANUFACTURERS UNFAIRLY PREVENTS NOVELL FROM SELLING ITS DOS CLONE THE CHARGES ARE SIMILAR TO THOSE PREVIOUSLY INVESTIGATED BY THE FEDERAL TRADE COMMISSION WHICH DEADLOCKED ON WHETHER TO FILE ANY ACTION AGAINST MICROSOFT THE JUSTICE DEPARTMENT IS NOW INVESTIGATING THE SAME CHARGES TO DETERMINE WHETHER IT CAN BUILD A RESTRAINTOFTRADE CASE A SPOKESWOMAN SAID MICROSOFT WILL COOPERATE FULLY WITH THE EC PROBE AND REITERATED THE POSITION THAT MICROSOFT HASN'T DONE ANYTHING WRONG 9309070013 930907 MARKETING & MEDIA BERTELSMANN RENEWS ACCORD TO DISTRIBUTE MCA RELEASES ABROAD NEW YORK BERTELSMANN MUSIC GROUP RENEWED ITS LUCRATIVE DEAL FOR THE INTERNATIONAL DISTRIBUTION OF MCA MUSIC RELEASES REGAINING A PACT THAT SEVERAL MAJOR RIVALS HAD SOUGHT BERTELSMANN MUSIC GROUP A UNIT OF GERMANY'S BERTELSMANN AG SAID IT WILL RENEW ITS MUSIC LICENSING AND DISTRIBUTION AGREEMENT WITH MCA MUSIC ENTERTAINMENT GROUP A UNIT OF MATSUSHITA ELECTRICAL INDUSTRIAL CO LTD WITH MILLIONS OF DOLLARS IN FOREIGN SALES AT STAKE THE BIDDING TO DISTRIBUTE MCA RELEASES REPORTEDLY DREW THE INTEREST OF SONY CORP AND POLYGRAM NV THE ARRANGEMENT HAS BEEN ESPECIALLY GOOD FOR BERTELSMANN WHOSE STRENGTH IN EUROPE HAS HELPED OFFSET SLOW GOING AT ITS US OPERATIONS WHICH INCLUDE THE RCA RECORDS LABEL AND WHICH HAVE BEEN SLIM ON HIT RECORDS MCA ARTISTS PROVIDE BERTELSMANN WITH ATTRACTIVE RELEASES FOR ITS PIPELINE OVERSEAS OUTSIDE THE US THE LATEST RECORDINGS OF HEAVY ROCKERS GUNS N' ROSES SOLD 14 MILLION UNITS WHILE RHYTHM AND BLUES VOCALIST BOBBY BROWN HAS SOLD 13 MILLION UNITS SOME INDUSTRY WATCHERS AND ANALYSTS EXPECT MCA AND BERTELSMANN TO COMBINE OPERATIONS BUT COMPANY INSIDERS SAID THAT WASN'T DISCUSSED AS PART OF THE NEW CONTRACT AND ISN'T A SERIOUS ISSUE AT THIS POINT WHILE MCA BASED IN LOS ANGELES HAS SOME OF THE INDUSTRY'S HOTTEST AMERICAN ACTS ON THE MCA GEFFEN AND GRP LABELS IT IS THE ONLY ONE OF THE SIX MAJOR MUSIC COMPANIES THAT DOESN'T DISTRIBUTE ITSELF OVERSEAS THE NEW FIVEYEAR AGREEMENT TAKES EFFECT NEXT APRIL AND GOES BEYOND THE CURRENT THREEYEAR PACT OFFERING MCA THE OPTION TO OPEN NEW COMPANIES IN TERRITORIES BEYOND THE UK AND GERMANY WHERE IT ALREADY OPERATES MCA IS CONSIDERING OPENING COMPANIES IN FRANCE AND ITALY AMONG OTHER MAJOR EUROPEAN MARKETS 9309070012 930907 EXECUTIVE LIFE BAILOUT CLOSES WITH TRANSFER OF ASSETS TO NEW FIRM LOS ANGELES A BAILOUT PLAN FOR THE NATION'S SECONDLARGEST INSURANCE INSOLVENCY WAS COMPLETED WITH THE TRANSFER OF MORE THAN 7 BILLION IN UNDERWRITING OF FAILED EXECUTIVE LIFE INSURANCE CO TO A NEW FRENCHCONTROLLED COMPANY AURORA NATIONAL LIFE ASSURANCE CO OWNED TWOTHIRDS BY A GROUP HEADED BY MUTUELLE ASSURANCE ARTISANALE DE FRANCE AND ONETHIRD BY SUNAMERICA INC FORMALLY ASSUMED MOST OF THE INSURER'S ASSETS AND RESTRUCTURED LIABILITIES FRIDAY ABOUT 92 OF EXECUTIVE LIFE'S 340000 POLICYHOLDERS WILL RECEIVE 100 CENTS ON THE DOLLAR UNDER THE REHABILITATION WHICH INCLUDES PAYMENTS BY INDUSTRYFUNDED STATE GUARANTY FUNDS POLICYHOLDERS WILL NOW CHOOSE WHETHER TO PARTICIPATE IN THE REHABILITATION OR CASH IN THEIR POLICIES THE TRANSFER ENDS A CONTENTIOUS TWOYEAR STRUGGLE IN A CASE THAT CAME TO SYMBOLIZE UNCONTROLLED GROWTH AND RISKY JUNKBOND INVESTMENTS IN THE LIFE INSURANCE INDUSTRY STATE REGULATORS SEIZED EXECUTIVE LIFE A UNIT OF FIRST EXECUTIVE CORP IN 1991 AND OTHER LARGE LIFE INSURERS LATER STUMBLED OR COLLAPSED IN THE WAKE OF THE PLUNGE IN JUNKBOND AND REALESTATE MARKETS 9309070011 930907 ANALYSTS CONCLUDE IT'S A GREAT TIME FOR STOCKS CREDIT MARKETS RALLY IN BONDS MAY BE DUE FOR A REVERSAL BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE LAST TIME LONGTERM YIELDS WERE THIS LOW MANY OF TODAY'S HOTSHOT BOND TRADERS AND MONEY MANAGERS WERE STILL LEARNING THEIR MULTIPLICATION TABLES SO EXPERIENCE HASN'T TAUGHT THEM WHAT HAPPENS AFTER YIELDS DROP THIS FAR THIS FAST BUT MANY OF THESE MARKET PLAYERS ARE RELUCTANT TO SAY THE BOND MARKET'S PRICE RALLY IS OVER THEY SEE YIELDS DROPPING A BIT MORE IN THE COMING WEEKS AND PRICES CONTINUING TO RISE BUT ARE INCREASINGLY WORRIED ABOUT WHAT WILL HAPPEN AFTER THAT MANY ARE CONVINCED THAT A CORRECTION OF SOME KIND IS ON ITS WAY THE SAME GOES FOR WALL STREET ECONOMISTS LOTS OF WHOM UNDERESTIMATED HOW FAR BOND YIELDS WOULD FALL THIS YEAR IN THE WALL STREET JOURNAL'S JULY SURVEY OF 44 ECONOMISTS JUST ONE PREDICTED THE 30YEAR TREASURY BOND WOULD END THE YEAR YIELDING LESS THAN 6 NONE PREDICTED THE YIELD WOULD GO AS LOW AS FRIDAY'S 594 WHICH IS DOWN FROM 736 A YEAR AGO AND IS THE LOWEST SINCE THE TREASURY BEGAN REGULAR 30YEAR BOND AUCTIONS IN 1977 YIELDS HAVE TUMBLED SO SHARPLY THAT MANY IN THE MARKET ARE LOOKING INSTEAD TO THE 10YEAR NOTE AS A BETTER HISTORICAL BENCHMARK FOR BOND YIELDS THE YIELD ON THE 10YEAR TREASURY NOTE DROPPED TO 528 FRIDAY A LOW UNSEEN SINCE SEPTEMBER 1967 AN INVESTOR WHO A YEAR AGO BOUGHT THE 725 30YEAR TREASURY BOND MATURING IN 2022 COULD HAVE SOLD THE SAME BOND FOR NEARLY 170 MORE ON FRIDAY INCLUDING COUPON PAYMENTS THE TOTAL RETURN OF ABOUT 25 LOOKS LIKE SOMETHING YOU'D EXPECT FROM A JUNK BOND NOT A SECURITY BACKED BY THE US GOVERNMENT WITH 30YEAR BOND YIELDS SLIPPING TOWARD 6 ALL LAST WEEK FRIDAY'S WEAK EMPLOYMENT REPORT FOR AUGUST WAS LIKE BLOOD IN A SHARK TANK ACCORDING TO MONEY MANAGERS AND BOND TRADERS MONEY POURED INTO THE TREASURY MARKET AS INVESTORS CHASED THE BOND MARKET RALLY BEFORE THE EARLY 1 PM EDT CLOSE INVESTORS ARE BECOMING MORE CONVINCED INFLATION WILL REMAIN SUBDUED AND THAT THE ECONOMY IS UNLIKELY TO GROW VERY QUICKLY IN THE NEAR FUTURE BOND INVESTORS FEAR INFLATION AND RAPID ECONOMIC GROWTH BECAUSE THEY CAN REDUCE THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE BUYING IS YIELDOBLIVIOUS' SAYS PETER HEGEL HEAD OF FIXEDINCOME INVESTMENTS AT VAN KAMPEN MERRITT A MUTUAL FUND FIRM THAT'S BECAUSE DEBTHOLDERS FROM HOMEOWNERS TO CITIES AND STATES TO THE NATION'S LARGEST CORPORATIONS ARE RUSHING TO REPLACE OLDER HIGHERYIELDING DEBT WITH LOWERYIELDING DEBT AS INTEREST RATES DROP BUT WHAT'S GOOD NEWS FOR DEBTORS IS VERY BAD NEWS FOR SOME INVESTORS THEY FIND THEMSELVES WITH LOADS OF CASH TO REINVEST JUST WHEN INTEREST RATES ARE HITTING THEIR LOWEST LEVELS IN DECADES MONEY MANAGERS HAVE NOT APPRECIATED ENOUGH THE WHOLE PREPAYMENT AND REFINANCING PHENOMENON SAYS MR HEGEL IT'S BEEN MUCH BIGGER AND GONE ON MUCH LONGER THAN ANYBODY REALIZED HE SAYS THE AVERAGE DAILY INFLOWS INTO VAN KAMPEN MERRITT BOND FUNDS ARE NEARLY TRIPLE WHAT THEY WERE LAST YEAR HE SAYS THE RUSH INTO TREASURYS HAS ALSO BEEN HELPED BY A VERY STREAMLINED MORTGAGEREFINANCING PROCESS SAYS MR HEGEL IT'S QUICKER AND EASIER THAN EVER BEFORE FOR US HOMEOWNERS TO REFINANCE THEIR HOME MORTGAGES RATES HAVE DROPPED SO FAR SO FAST THAT MANY HOMEOWNERS HAVE BEEN ABLE TO REFINANCE TWICE IN THE PAST YEAR THIS MEANS THAT BILLIONS OF DOLLARS OF MORTGAGEBACKED SECURITIES SOLD TO INVESTORS JUST LAST WINTER WITH COUPONS OF 75 TO 8 ARE SUDDENLY IN DANGER OF BEING YANKED AWAY AS THE UNDERLYING MORTGAGES ARE PAID OFF EARLY SICK OF THE DECLINING YIELDS AND THE LACK OF CALL PROTECTION MANY MONEY MANAGERS AND INVESTORS ARE PLUNGING INTO THE TREASURY MARKET INSTEAD IN A STABLE RATE ENVIRONMENT THE AVERAGE MORTGAGEBACKED SECURITIES FUND SEES 1 OF ITS CASH RETURNED TO IT EACH MONTH DUE TO PREPAYMENTS SAYS MR HEGEL THESE DAYS THAT PERCENTAGE CAN BE THREE TO FIVE TIMES GREATER HE ESTIMATES ONE OF THE MONEY MANAGERS USING 30YEAR BONDS TO PROTECT AGAINST PREPAYMENTS IS LAWRENCE C WALDORF A PORTFOLIO MANAGER AT FIRST INVESTORS MANAGEMENT CO HE HAS INCREASED HIS HOLDINGS OF 30YEAR BONDS TO 38 OF HIS PORTFOLIO OR 1216 MILLION FROM NOTHING JUST SIX WEEKS AGO WE HAVE TO MINIMIZE PREPAYMENT RISK AND IT'S VERY HARD TO KEEP UP OUR DIVIDENDS WITH JUST 10YEAR TREASURYS HE SAYS MONEY MANAGERS REMEMBER THE FRENZIED BUYING OF BONDS IN 1986 AND EARLY 1987 AND THE EIGHTMONTH BEAR MARKET THAT FOLLOWED THEY WONDER IF IT COULD HAPPEN AGAIN A SHARP DROP OF THE DOLLAR AGAINST OTHER MAJOR CURRENCIES GROWING INFLATION FEARS AND FOREIGN INVESTORS' RETREAT FROM BUYING US BONDS ALL HELPED CAUSE THE 1987 SLUMP BUT THESE DAYS FEW ARE EXPECTING THE DOLLAR TO DROP SHARPLY INFLATION FEARS ARE LOW AND MORE FOREIGN INVESTORS ESPECIALLY THE JAPANESE ARE INVESTING IN THE US BOND MARKET MONEY MANAGERS ARE STILL WORRIED HOWEVER EVERYBODY'S GREAT FEAR IS THAT WE'RE GOING TO GET WHIPSAWED HERE IF RATES RISE SHARPLY SAYS MR HEGEL OF VAN KAMPEN MERRITT ONE DAY THE MERRYGOROUND WILL STOP ANYTIME YOU THINK ABOUT GETTING NEGATIVE ON THE MARKET PRICES GO UP A QUARTER POINT SAYS THOMAS R LYNETT JR A DIRECTOR OF GOVERNMENT TRADING AT MERRILL LYNCH & CO MOST WALL STREET DEALERS HAVE BEEN RELUCTANT TO FILL THEIR SHELVES WITH TREASURYS IN ANTICIPATION OF MORE BUY ORDERS SAYS MR LYNETT SO WHEN BUY ORDERS FLOOD IN THE DEALERS ARE FORCED TO FILL THEM AT HIGHER PRICES IN THE OPEN MARKET THUS PUSHING RATES DOWN AS PRICES RISE AND NARROWING THE DEALERS' PROFIT MARGINS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC BELIEVES MANY INVESTORS HAVE CONCLUDED THAT THE ONLY GAME WORTH PLAYING IS IN THE FINANCIAL MARKETS AS OPPOSED TO OTHER INVESTMENTS THE ECONOMY IS MOVING AHEAD BUT THE PACE IS AWFULLY SLOW HE SAYS PEOPLE CAN SPEND MONEY ON GOODS AND SERVICES REAL ASSETS OR FINANCIAL ASSETS BUT BECAUSE THERE IS A LOT OF UNCERTAINTY ABOUT THE DIRECTION OF THE ECONOMY PEOPLE ARE HOLDING BACK SPENDING ON GOODS AND SERVICES AND CLEARLY NOT BUYING REAL ASSETS HE SAYS WHEN PEOPLE ARE THIS UNCERTAIN THEY PUT MONEY UNDER THE MATTRESS AND THE BOND MARKET IS THE MATTRESS RIGHT NOW IS HE MORE CAUTIOUS WITH 30YEAR BOND YIELDS NOW BELOW 6 YES SAYS MR FINE WOULD I CHANGE THE DIRECTION NO THE MARKET WILL PROCEED WITH CAUTION BUT PROCEED NEVERTHELESS BUT THERE IS ONE THING THE BOND MARKET HAS DONE CONSISTENTLY OVER THE PAST YEAR CONFOUND EXPECTATIONS IT'S SOMETHING MANY OF TODAY'S BOND MANAGERS EXPERIENCED ONCE BEFORE IN THEIR DAYS OF MEMORIZING THE MULTIPLICATION TABLES JUST LIKE THIS YEAR THE NEW YORK METS PROFESSIONAL BASEBALL TEAM WAS IN LAST PLACE IN THE LEAGUE IN 1967 THE LAST TIME 10YEAR TREASURY NOTE YIELDS WERE AS LOW AS THEY ARE NOW NOBODY EXPECTED THE TEAM TO DO VERY WELL JUST TWO YEARS LATER THE MIRACLE METS WON THE WORLD SERIES AND 10YEAR NOTE YIELDS TOPPED 8 SOON AFTER DATA SHOWING UNEXPECTED WEAKNESS IN THE LABOR MARKET PROPELLED PRICES OF US TREASURY NOTES AND BONDS SIGNIFICANTLY HIGHER FRIDAY CAUSING YIELDS TO PLUNGE THE US BOND MARKETS WERE CLOSED YESTERDAY IN OBSERVANCE OF THE LABOR DAY HOLIDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE 1 3/8 POINTS OR 1375 FOR A BOND WITH A 1000 FACE VALUE TO 104 8/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE DROPPED TO 594 FROM 604 THURSDAY PRICES OF ALL OTHER TREASURY MATURITIES ALSO POSTED SIGNIFICANT GAINS THE CATALYST FOR THE BUYING FRENZY WAS AN UNEXPECTEDLY WEAK EMPLOYMENT REPORT FOR AUGUST THE LABOR DEPARTMENT REPORTED THAT NONFARM PAYROLL EMPLOYMENT FELL 39000 DURING THE MONTH COMPARED WITH AN INCREASE OF ABOUT 150000 THAT MOST WALL STREET ECONOMISTS HAD EXPECTED BOND TRADERS LARGELY BRUSHED ASIDE NEWS OF A DROP IN THE UNEMPLOYMENT RATE TO 67 FROM 68 AS WELL AS HEALTHY INCREASES IN HOURS WORKED AND AVERAGE HOURLY EARNINGS SOME ANALYSTS CONTENDED THAT THE REPORT WASN'T AS BAD FOR THE ECONOMY AS THE OVERALL DECLINE IN PAYROLLS WOULD SUGGEST ANALYSTS WARNED THAT SPECULATION ABOUT A POSSIBLE MOVE BY THE FEDERAL RESERVE TO CUT SHORTTERM INTEREST RATES WAS OVERDONE AS A RESULT YIELDS ON SHORTTERM ISSUES MIGHT HAVE FALLEN A BIT TOO FAR THEY SAID THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE SEE RELATED STORY ABREAST OF THE MARKET BUT THEY DIFFER OVER PARALLELS WITH PAST ERAS WSJ SEPT 7 1993 9309070010 930907 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 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 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 PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 302 30 TO 31 DAYS 306 32 TO 59 DAYS 308 60 TO 139 DAYS 316 140 TO 179 DAYS 318 180 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 314 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 258 TWO MONTHS 260 THREE MONTHS 274 SIX MONTHS 290 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 297 ONE MONTH 305 THREE MONTHS 314 SIX MONTHS BANKERS ACCEPTANCES 298 30 DAYS 297 60 DAYS 299 90 DAYS 307 120 DAYS 307 150 DAYS 307 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 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 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY AUGUST 30 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 302 13 WEEKS 311 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 653 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 657 60 DAYS 667 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 485 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 9309070009 930907 A PARTYING TOWN MEXICO'S XOCHIMILCO IS ALWAYS CELEBRATING YEARLONG FETE FOR BABY JESUS IS THE BIGGEST OF 422 FIESTAS THE MAYORDOMO' PRESIDES BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL XOCHIMILCO MEXICO THERE ARE 422 OFFICIALLY RECOGNIZED FIESTAS A YEAR IN THIS QUIRKY COMMUNITY THAT IS MORE CELEBRATING THAN THE TOWN'S CRAMPED COBBLED STREETS CAN EASILY ACCOMMODATE TRAFFIC POLICEMAN SALVADOR SILVA NEARLY CHOKED ON HIS WHISTLE WHEN A PARADE OF LOCAL BEAUTY QUEENS COLLIDED HEADON WITH A PROCESSION CARRYING AN ANCIENT WOODEN ICON OF THE BABY JESUS WE EITHER NEED FEWER FIESTAS OR MORE DAYS IN THE YEAR SAYS OFFICER SILVA THE BIGGEST OF ALL THE FETES IS THE FESTIVAL OF THE JESUS ICON EVERY YEAR THE STATUE KNOWN AS THE NINOPAN IS PLACED IN THE CARE OF A NEW MAYORDOMO OR STEWARD WHO THROWS A BIG PARTY COME ONE COME ALL THEN FOR THE NEXT 364 MORNINGS OF JUST THIS ONE FIESTA THE MAYORDOMO LENDS OUT THE NINOPAN TO A DIFFERENT HOUSEHOLD WHICH PARADES THE IMAGE THROUGH TOWN AND CELEBRATES UNTIL SUNDOWN XOCHIMILCO ON THE SOUTHERN EDGE OF MEXICO CITY SPARES NO EXPENSE IN HONORING THE PERIPATETIC JESUS FIGURE THIS YEAR'S NEW MAYORDOMO SPONSORED A FIREWORKS DISPLAY WITH 3000 ROCKETS HAD A PARADE WITH THREE BANDS AND 65 DANCERS AND A DINNER OF 28 ROAST PIGS HE HAD ALREADY BUILT A SEVENROOM BRICK HOUSE FOR THE NINOPAN TO SPEND ITS NIGHTS IN THE NINOPAN NEEDS ALL THE ROOM TO STORE ITS VAST COLLECTION OF TOYS AND CLOTHING GIFTS FROM CELEBRANTS ACCUMULATED OVER THE YEARS IN THE STATUETTE'S LONG PEREGRINATIONS THROUGH XOCHIMILCO DESPITE THE CONSIDERABLE DEMANDS OF THE JOB THERE IS A WAITING LIST OF PROSPECTIVE MAYORDOMOS THROUGH THE YEAR 2040 SERVING PAYS NOTHING AND COSTS THE MAYORDOMO MONEY OUT OF HIS OWN POCKET BUT IT IS AN ARTICLE OF FAITH THAT THE NINOPAN GIVES BACK TO THE MAYORDOMO ALL THAT IT RECEIVES AND THEN SOME XOCHIMILCO PRONOUNCED SOCHEEMILCO SEEMS TO BE THE MOST PARTYING TOWN IN A COUNTRY WITH A PASSION FOR PAGEANTRY THE MEXICAN PENCHANT FOR CELEBRATING IS THE FLIP SIDE OF A BROODING NATIONAL CHARACTER FORGED IN THE CRUCIBLE OF THE SPANISH CONQUEST AND MOLDED BY TRAGEDY THE POET OCTAVIO PAZ HAS CALLED THE MEXICAN FIESTA THE BRILLIANT REVERSE TO OUR SILENCE AND APATHY OUR RETICENCE AND GLOOM XOCHIMILCO IS SEPARATED FROM CENTRAL MEXICO CITY BY AN ANCIENT LAKE WHICH GIVES IT A DISTINCT IDENTITY AS SOMETHING MORE THAN A CLOSEIN SUBURB OF THE MOST POPULOUS CITY ON EARTH A CITY MORE OR LESS OBLIVIOUS TO XOCHIMILCO'S FIESTAS IN HONOR OF ICECREAM VENDORS TEAMSTERS FLORISTS MAILMEN CHILDREN AND THE VIRGIN OF GUADALUPE CHRISTENINGS HERE CAN GO ON FOR FIVE DAYS AND WAKES A WEEK THOUGH THE YEARLONG FEAST OF THE NINOPAN DOMINATES LOCAL SOCIAL LIFE THE ORIGINS OF THE STATUE ARE OBSCURE IT IS BELIEVED THAT THE FIGURE WAS CARVED FROM THE TRUNK OF AN ORANGE TREE SOME 200 YEARS AGO IN A FINEARTS SCHOOL RUN BY SPANISH FRIARS THE NINOPAN'S PALLID COMPLEXION AND BLUISH EYES ARE SPANISH FEATURES NOTES HISTORIAN FERNANDO ARENAS BUT ITS VSHAPED HAIRLINE AND BROAD NOSE ARE MORE CHARACTERISTIC OF THE XOCHIMILCA INDIANS HE SAYS THE TOWN HAS VENERATED THE NINOPAN FOR AS LONG AS ANYONE CAN REMEMBER THE FEAST HAS SURVIVED EARTHQUAKES FLOODS FAMINES AND THE ARRIVAL OF PANCHO VILLA DURING THE MEXICAN REVOLUTION ODDLY ENOUGH THE BIGGEST THREAT TO THE TRADITION CAME FROM A ROMAN CATHOLIC PRIEST IN 1969 A NEWLY APPOINTED PASTOR TRIED TO TAKE THE NINOPAN AWAY FROM THE MAYORDOMO AND DISPLAY IT IN THE TOWN'S COLONIALSTYLE CATHEDRAL HE WANTED THE MONEY SPENT ON FIESTAS TO BE DONATED TO THE CHURCH INSTEAD SAYS MR ARENAS WHEN THE MAYORDOMO BALKED THE PRIEST SUED ON GROUNDS THAT THE FIGURE WAS CARVED AT THE FRIARS' SCHOOL AND THUS BELONGED TO THE CHURCH THE CASE WENT ALL THE WAY UP TO THE ATTORNEY GENERAL OF MEXICO WHO RULED IN FAVOR OF THE MAYORDOMO THE PRIEST LEFT TOWN AND HIS SUCCESSORS NEVER BUCKED TRADITION AGAIN THIS YEAR AS ALWAYS THE CYCLE OF FIESTAS BEGAN WITH THE FEB 2 FEAST MARKING THE ASCENSION OF THE NEW MAYORDOMO THERE WERE TOWERING PYRAMIDS OF TAMALES TROUGHS OF REFRIED BEANS AND GREAT PLATTERS OF ROAST PIG THE FRIED PORK RINDS WERE AS BIG AS THE HOOD OF A CAR THE WHOLE AFFAIR INCLUDING THE PARADE AND FIREWORKS SET THE MAYORDOMO BACK 17000 OF HIS OWN MONEY SAYS SEBASTIAN FLORES A TOWN OFFICIAL OUR REALLY BIG FIESTAS COST A LOT MORE HE ADDS THE MAYORDOMO IS ALSO EXPECTED TO SPONSOR BASHES FOR EASTER AND PATRIOTIC HOLIDAYS SUCH AS CINCO DE MAYO ACTUALLY XOCHIMILCO IS AN INCONGRUOUS PARTY SPOT A TOWN OF SQUAT CINDERBLOCK HOUSES AND CLOTHESLINES SAGGING UNDER THE WEIGHT OF TOO MUCH LAUNDRY EVEN TRADE FROM TOURISTS WHO VISIT THE TOWN'S FAMOUS FLOATING GARDENS HASN'T DONE MUCH TO RAISE LIVING STANDARDS BUT MEXICAN FIESTAS OBEY THEIR OWN ECONOMIC LAW OUR POVERTY CAN BE MEASURED BY THE FREQUENCY AND LUXURIOUSNESS OF OUR HOLIDAYS WROTE MR PAZ THE POET THIS YEAR THE PERSON RESPONSIBLE FOR MAKING XOCHIMILCO'S HOLIDAYS SO NUMEROUS AND OPULENT IS MAYORDOMO SAMUEL ANZURES HE HAD BEEN MAKING PLANS AND SAVING MONEY FOR THE CURRENT FIESTA SINCE THE EARLY 1970S WHEN HIS APPLICATION TO BE MAYORDOMO WAS ACCEPTED BY THE COMMITTEE OF TOWN ELDERS WHO OVERSEE THE FESTIVAL MR ANZURES SOUGHT THE JOB OUT OF HIS FAITH IN THE NINOPAN'S POWERS WHICH TO ALL APPEARANCES ARE SUPERNATURAL LEGEND HAS IT THAT THE STATUE BRINGS MATERIAL GOOD FORTUNE TO THE MAYORDOMO THE MORE HE IS WILLING TO SPEND ON THE ICON OF THE BABY JESUS THE MORE PROSPERITY WILL BE IN STORE FOR THE MAYORDOMO AFTER TAKING HIS TURN AS MAYORDOMO SOME YEARS AGO THE OWNER OF A RUNDOWN GENERAL STORE BECAME A RETAIL BARON WITH SHOPS ALL OVER TOWN A FLOWER FARMER WHOSE SEEMING INABILITY TO MAKE ANYTHING GROW WAS SOMETHING OF A TOWN JOKE DID A STINT AS MAYORDOMO AND DEVELOPED A GREEN THUMB MR ANZURES BELIEVES THAT HE WILL GET HIS REWARD TOO IN DUE COURSE THOUGH HE ISN'T THE SORT OF FELLOW TO SIT AROUND WAITING FOR MIRACLES HE HAS HAD TO MOONLIGHT AT TWO JOBS IN ADDITION TO RUNNING HIS OWN CRAFT SHOP TO PAY FOR ALL THE PARTYING FOR EVERY HOUR OF FIESTA THERE ARE MANY DAYS OF LABOR SAYS MR ANZURES CLEARLY EXHAUSTED SOME LOCALS SKEPTICAL OF SUPERNATURAL EXPLANATIONS SAY THE MAYORDOMOS' PROSPERITY IS ATTRIBUTABLE TO NOTHING MORE MIRACULOUS THAN THE SWEAT OF THEIR BROW I KNEW A TAILOR WHO NEVER WORKED A DAY IN HIS LIFE UNTIL HIS WIFE VOLUNTEERED HIM TO BE MAYORDOMO SAYS ROSALIO FLORES A TAXI DRIVER WHEN HE SAW WHAT IT TOOK TO ORGANIZE AND PAY FOR THE FIESTA HE BEGAN WORKING VERY HARD HE KEPT IT UP EVEN WHEN HE WAS NO LONGER MAYORDOMO AND BECAME A WEALTHY MAN AFTER THROWING THIS FIESTA ANY JOB SEEMS EASY BY COMPARISON MAYBE SAYS LINO GARCIA LAST YEAR'S MAYORDOMO IT'S ALL A MATTER OF HOW YOU DEFINE A MIRACLE IT MAY BE MIRACULOUS HOW A MAYORDOMO LEARNS THE VALUE OF WORK SAYS MR GARCIA ONLY A YEAR BEFORE HE WAS TO TAKE CHARGE OF THE NINOPAN MR GARCIA'S SMALL LANDSCAPING COMPANY WENT BUST I HAD FALLEN INTO THE TRAP OF SLOTH AND VICE HE SAYS SHAKING HIS HEAD THE ONLY JOB MR GARCIA COULD FIND WAS AS A PEON ON A GOVERNMENT STREET CREW STILL HE VOWED TO FULFILL HIS OBLIGATION TO THE NINOPAN WHATEVER IT TOOK SHORTLY BEFORE MR GARCIA'S TERM WAS TO START HE GOT A BREAK A GOVERNMENT OFFICIAL IMPRESSED BY MR GARCIA'S DEDICATION MADE HIM BOSS OF A 200MAN CREW ON A HUGE HIGHWAYLANDSCAPING JOB ON THE DAY HE BECAME MAYORDOMO MR GARCIA GAVE THANKS FOR HIS NEWFOUND PROSPERITY BY SETTING UP SEVEN KITCHENS AND THROWING ONE OF XOCHIMILCO'S MOST MEMORABLE WINGDINGS YES IT COST MONEY SAYS MR GARCIA BUT SOME MEN SPEND MONEY ON JEWELED CUFF LINKS WHEN BUTTONS WILL DO PEOPLE BUY BIG CARS WHEN VOLKSWAGENS ARE MORE PRACTICAL WHY NOT SPEND THE MONEY ON SOMETHING WORTHWHILE WHY NOT HAVE A FIESTA 9309070007 930907 TRANSCANADA GAS UNIT REVAMPS SUPPLY PACT WITH ANR PIPELINE CALGARY ALBERTA WESTERN GAS MARKETING LTD SAID IT RESTRUCTURED ITS GAS SUPPLY ARRANGEMENTS WITH ANR PIPELINE CO REMOVING A THREAT TO OVER 5 OF ITS 12 TRILLION CUBICFOOT ANNUAL SALES THE CALGARY GAS MARKETER A UNIT OF CALGARY PIPELINE COMPANY TRANSCANADA PIPELINES LTD SAID IT AGREED TO SELL 159 MILLION CUBIC FEET A DAY OF ALBERTA NATURAL GAS DIRECTLY TO FIVE WISCONSIN LOCAL UTILITES INSTEAD OF SELLING THE GAS TO ANR THE UTILITIES' PRESENT SUPPLIER WESTERN GAS SAID THE NEW 10YEAR CONTRACTS EFFECTIVE NOV 1 REPLACE A SALES CONTRACT WITH ANR THAT WAS DUE TO EXPIRE IN LESS THAN TWO YEARS WESTERN GAS'S US SALES MANAGER CLEVE HOGARTH SAID THE NEW SALES ARRANGEMENT AFFECTS AT LEAST 5 OF THE COMPANY'S ANNUAL SALES AND THAT THESE SALES MIGHT HAVE BEEN LOST WITHOUT NEW MARKETING ARRANGEMENTS HE SAID THE AGREEMENT FREES ANR FROM POSSIBLY HAVING TO NEGOTIATE A BUYOUT OF THE OLD SALES CONTRACT WHICH COULD HAVE LEFT THE DETROIT MICH PIPELINE COMPANY OBLIGED TO PAY FOR CANADIAN GAS THAT IT COULDN'T SELL IN THE US HOGARTH SAID A US FEDERAL ENERGY REGULATORY COMMISSION ORDER REQUIRING US INTERSTATE PIPELINES TO REVERT TO COMMON CARRIER STATUS BY NOV 1 EFFECTIVELY BANNING THEM FROM GAS MARKETING ACTIVITIES IS FORCING WESTERN GAS TO RESTRUCTURE ITS SUPPLY ARRANGEMENTS WITH ANR AND TWO OTHER US PIPELINES HE SAID WESTERN GAS IS TRYING TO NEGOTIATE NEW SALES CONTRACTS FOR A FURTHER 46 MILLION CUBIC FEET A DAY OF GAS PRESENTLY CONTRACTED TO ANR WESTERN GAS SAID ITS SALES CONTRACTS WITH THE WISCONSIN UTILITIES WILL GENERATE ABOUT 15 BILLION CANADIAN DOLLARS US11 BILLION OF REVENUE FOR THE 730 ALBERTA GAS PRODUCERS IN ITS SUPPLY POOL 9309070006 930907 TEAMSTERS AT UPS AUTHORIZE WALKOUT IF NEGOTIATIONS FAIL ATLANTA THE TEAMSTERS UNION SAID ITS MEMBERS OVERWHELMINGLY VOTED TO AUTHORIZE A POSSIBLE STRIKE AGAINST UNITED PARCEL SERVICE OF AMERICA INC DESPITE THE APPARENT SUPPORT FOR A WALKOUT HOWEVER FEW INDUSTRY CONSULTANTS AND LABOR AUTHORITIES EXPECT UNION MEMBERS TO ACTUALLY WALK OFF THEIR JOBS THE COSTS TO BOTH SIDES THEY SAID WOULD BE SUBSTANTIAL CONTRACT TALKS BETWEEN THE TWO SIDES ARE SCHEDULED TO RESUME TODAY ABOUT 64000 TEAMSTERS VOTED TO BACK A WALKOUT SHOULD THE UNION BREAK OFF TALKS WHILE 4000 VOTED AGAINST THE PROPOSAL THE UNION SAID ABOUT 165000 TEAMSTERS WORK FOR UPS REPRESENTING THE LARGEST SINGLE TEAMSTERS SHOP IN THE COUNTRY A UNION SPOKESMAN SAID THE VOTE GIVES OUR NEGOTIATING TEAM A STRONG WEAPON TO TAKE BACK TO THE TABLE WE'RE TELLING UPS TO GET SERIOUS IN BARGAINING HE ADDED HOWEVER THAT THE TEAMSTERS VIEW A STRIKE AS OUR LAST RESORT A UPS SPOKESMAN LAST FRIDAY SAID THE CLOSELY HELD PACKAGEDELIVERY COMPANY DOESN'T EXPECT A STRIKE AND WOULD AVOID ONE AT ALL COSTS HE CHARACTERIZED THE STRIKE VOTE AS A RELATIVELY ROUTINE BARGAINING STRATEGY UPS CARRIES 115 MILLION PACKAGES A DAY IN THE FIERCELY COMPETITIVE PACKAGEDELIVERY BUSINESS THE COMPANY IS WARY OF LOSING CUSTOMERS TO ITS RIVALS IN THE EVENT OF A WALKOUT SO FAR UPS COMPETITORS FEDERAL EXPRESS CORP MEMPHIS TENN AND ROADWAY SERVICES AKRON OHIO SAY THEY HAVEN'T SEEN AN INCREASE IN BUSINESS BECAUSE OF THE UPS CONTRACT TALKS THE TEAMSTERS UNION MEANWHILE HAS JUST 30 MILLION IN ITS STRIKE FUND WHICH WOULD BE DRAINED IN ONE WEEK OF A STRIKE LAST MONTH THE UNION SECURED AN ADDITIONAL 80 MILLION IN LOANS FROM OTHER AFLCIO UNIONS TO AUGMENT ITS STRIKE FUND 9309070005 930907 ATLAS CORP TURNS CONTROL OF COMPANY OVER TO CANADIANS DENVER ATLAS CORP FACING IMMINENT DEMISE AGREED TO TURN OVER CONTROL OF ITS BOARD TO CANADIAN INVESTORS IN EXCHANGE FOR A BAILOUT THE MINING CONCERN SAID IT ENTERED INTO AN AGREEMENT WITH PHOENIX FINANCIAL HOLDINGS INC TORONTO TO SELL FOR NEARLY 84 MILLION THE FOLLOWING 15 MILLION SHARES OF ATLAS COMMON STOCK A REDEEMABLE CONVERTIBLE DEBENTURE DUE 1998 IN THE PRINCIPAL AMOUNT OF 35 MILLION WHICH IS CONVERTIBLE INTO ATLAS COMMON SHARES AT 4 A SHARE AND WARRANTS TO BUY TWO MILLION SHARES OF ATLAS COMMON AT 3625 A SHARE WITHIN THREE YEARS ATLAS HAD ABOUT 63 MILLION SHARES OUTSTANDING AS OF MARCH 31 THE COMPANY SAID ALTHOUGH THE SALE WOULD NORMALLY REQUIRE SHAREHOLDER APPROVAL ATLAS SAID ITS BOARD DETERMINED THAT THE DELAY NEEDED TO GET THAT APPROVAL WOULD JEOPARDIZE THE COMPANY'S FINANCIAL VIABILITY AND ACTED USING AN EXCEPTION PROVIDED FOR UNDER THE NEW YORK STOCK EXCHANGE'S SHAREHOLDER APPROVAL POLICY WITHOUT THIS TRANSACTION OR ANOTHER IMMEDIATE CAPITAL INFUSION THE COMPANY SAID IT WOULDN'T HAVE ENOUGH FUNDS TO CONTINUE OPERATIONS ATLAS PREVIOUSLY SAID IT EXPECTS TO REPORT AN OPERATING LOSS OF ABOUT 13 MILLION AND A ONETIME CHARGE OF 24 MILLION TO 29 MILLION TO REFLECT THE IMPACT OF REDUCED ORE RESERVES FOR THE FISCAL YEAR ENDED JUNE 30 ATLAS SAID WHEN THE TRANSACTION CLOSES ON OR ABOUT SEPT 20 PHOENIX APPOINTEES INCLUDING PHOENIX PRESIDENT DAVID J BIRKENSHAW WILL REPLACE FOUR OF ITS SIX BOARD MEMBERS TRADING OF ATLAS COMMON SHARES ON THE BIG BOARD WAS HALTED BEFORE THE ANNOUNCEMENT AND DIDN'T RESUME FRIDAY ATLAS LAST TRADED AT 4375 DOWN 125 CENTS 9309070004 930907 MARKETING ON FASHION BY TERI AGINS KIDS HEAD BACK TO SCHOOL OUTFITTED IN A NEW LOOK THAT IS AS OLD AS THE HILLS BUGS BUNNY PORKY PIG AND OTHER VINTAGE WARNER BROTHERS CARTOON CHARACTERS AFFIXED TO BASEBALL CAPS TSHIRTS JACKETS BACKPACKS AND KEDS SHOES WITH NOVELTY TOPS AVERAGING 10 TO 18 RETAILERS ARE PUSHING THE LOONEY TUNES COLLECTION AS A BEST BUY FOR FRUGAL SHOPPERS PARENTS CAN'T AFFORD TO BUY A NEW WARDROBE FOR THEIR KIDS SO THEY ARE BUYING TWO OR THREE OF THE TSHIRTS THAT THE KIDS CAN WEAR WITH JEANS SAYS ALAN SPIEGELMAN AN EXECUTIVE AT CERTIFIED FASHION GUILD A BUYING OFFICE THAT CONSULTS WITH MAJOR RETAIL CHAINS NOSTALGIA IS ALSO FUELING SALES ADULTS CLAMOR TO WEAR DAFFY DUCK AND PEPE LE PEW CARTOONS THEY FONDLY REMEMBER AS IRREVERENT AND SOPHISTICATED SAYS DANIEL ROMANELLI PRESIDENT OF CONSUMER PRODUCTS FOR WARNER BROTHERS LIKELY BESTSELLERS A 48 SILK SHIRT WITH AN ALLOVER TWEETY BIRD PATTERN AND A 175 LEATHER BASEBALL JACKET WITH BUGS BUNNY LOGOS BOTH ITEMS CREATED A STIR AT A BIG MENSWEAR TRADE SHOW IN LAS VEGAS LAST WEEK WARNER BROTHERS A UNIT OF TIME WARNER EXPECTS TO SELL 1 BILLION OF LOONEY TUNES PRODUCTS THIS YEAR ABOUT 70 OF THAT WILL COME FROM APPAREL MANUFACTURED UNDER 135 LICENSING AGREEMENTS AND SOLD AT STORES FROM KMART TO MACY'S AS WELL AS THE FASTGROWING WARNER BROTHERS STUDIO STORE CHAIN WHICH WILL HAVE 50 OUTLETS OPERATING BY YEAREND THE MARKETING OF LOONEY TUNES CHARACTERS TO A NEW GENERATION BEGAN IN 1989 WHEN WARNER BROTHERS MARKED BUGS BUNNY'S 50TH BIRTHDAY WITH ANIMATED ADS PRODUCED WITH COMPANIES LIKE MCDONALD'S AND NIKE IN 1990 CHARACTERS LIKE TASMANIAN DEVIL POPPED UP ON LOGO SHIRTS OF MAJOR LEAGUE BASEBALL AND NATIONAL FOOTBALL LEAGUE TEAMS THIS FALL THE DISCOUNTER TARGET STORES' TOON IN TO SCHOOL PROMOTION WOOS KIDS WITH FREE COLLECTIBLE CARDS OF LOONEY TUNES CHARACTERS AT 950 JC PENNEY STORES LOONEY TUNES INSTORE SHOPS ARE UBIQUITOUS APPEARING IN SHOE KIDS' APPAREL AND EVEN HOUSEWARES DEPARTMENTS FUNKY FALL FASHIONS POSE RISKS FOR RETAILERS STRUGGLING TO PERSUADE RELUCTANT SHOPPERS TO SPLURGE ON CLOTHES TRENDHAPPY FASHION VICTIMS MAY SNAP UP THIS SEASON'S CROP OF COMBAT BOOTS CRUSHED VELVET GRANNY DRESSES AND EDWARDIAN POET'S SHIRTS BUT WHAT ABOUT REGULAR FOLKS EVEN INDUSTRY EXPERTS QUESTION THE WISDOM OF PUSHING FREAKY CHIC IN TODAY'S AUSTERE RETAILING ENVIRONMENT PEOPLE AREN'T COMING TO THE OFFICE IN CRUSHED VELVET WITH THEIR BOOTS UNLACED PREDICTS WALTER K LEVY A RETAILING INDUSTRY CONSULTANT THIS IS A FANTASY OF SEVENTH AVENUE THE CURRENT STYLES HE SAYS HAVE SUCH LIMITED APPEAL AND ARE SO EXTREME AND YOUNG THAT THEY WON'T END UP GENERATING SALES ACROSS THE BOARD WOMEN SPEND TWO TO THREE TIMES AS MUCH ON CAREER CLOTHES AS ON LEISURE WEAR HE NOTES NEIMAN MARCUS'S FALL CATALOG FEATURES NINE PAGES OF HEAVY BOOTS AND OXFORDS WHICH A NEIMAN MARCUS GROUP SPOKESWOMAN INSISTS ARE DRIVING OUR SHOE BUSINESS BUT TO HELP COAX WOMEN OUT OF PUMPS AND INTO CLUNKIER STYLES NEIMAN TRAINS ITS SALESPEOPLE WITH A SPECIAL VIDEO AND INVITES TOP SHOE DESIGNERS TO MAKE INSTORE APPEARANCES LANDS' END IS ONE RETAILER HAPPY TO DODGE THE EXTREMES THIS FALL IT TAPS INTO THE GROWING CAREER MARKET WITH ITS NEW TEXTURES CATALOG OF WOMEN'S DRESSIER CLOTHING IT FEATURES A 125 WOOLANDCASHMERE BLAZER ON THE BACK COVER UNDER THE CAPTION WHAT PRICE LUXURY A LOT LESS THAN YOU MIGHT THINK THE RIVALRY AMONG RETAILERS TO DRESS MANHATTAN MEN ESCALATES THIS WEEK AS BARNEYS NEW YORK THE HIP DOWNTOWN HABERDASHERY OPENS TOMORROW A PLUSH EIGHTFLOOR STORE IN MIDTOWN BARNEYS'S INVASION OF WHAT IS ARGUABLY THE WORLD'S PRIME RETAIL TURF HAS NEIGHBORING STORES GIRDING FOR STORE WARS THIS SPRING THEY SCRAMBLED TO LOCK UP HOT DESIGNERS IN EXCLUSIVE PACTS THEREBY LOCKING THEM OUT OF BARNEYS AFTER WINNING A COURT ORDER FORCING GIORGIO ARMANI TO REMAIN IN ITS FOLD BARNEYS IS DEVOTING AN ENTIRE FLOOR IN ITS NEW MADISON AVENUE STORE TO THE ITALIAN DESIGNER SAKS FIFTH AVENUE HAS REFURBISHED ITS MENSWEAR FLOOR AND BOASTS THAT ITS NEW RALPH LAUREN BOUTIQUE IS THE BIGGEST IN TOWN THE NORMALLY SEDATE BERGDORF GOODMAN MEN'S STORE MEANWHILE HAS BOOKED A HEAVY SCHEDULE OF DESIGNER TRUNK SHOWS AND PERSONAL APPEARANCES FEEDING MALE FANTASIES IS PART OF BARNEYS' STRATEGY ALONG WITH A LUXURIOUS MERCHANDISE MIX OF CUSTOMMADE SUITS AND SHOES FROM 345 TO 395 A PAIR IT INVITES WOULDBE SUGAR RAYS TO SPAR IN A FULLSIZE BOXING RING ON THE NINTH FLOOR BERGDORF HOWEVER HAS REMOVED THE PUTTING GREEN IT INSTALLED IN 1990 THE FAX MACHINES REMAIN BUT ARE USUALLY IDLE WHEN MEN SHOP THEY DON'T WANT TO BE ENTERTAINED SAYS BURT TANSKY BERGDORF CHAIRMAN THE SKIRMISH WILL GENERATE A FLURRY OF NEW ADVERTISING SAKS IS STEPPING UP ITS MENSWEAR ADS THIS FALL IN GQ MAGAZINE WITH AN EIGHTPAGE SPREAD IN THE OCTOBER ISSUE IT ALSO HAS SCHEDULED 12 PAGES OF ADS IN THE NEW YORK TIMES MENS' FASHION SUPPLEMENT AS WELL AS MORE MENSWEAR ADS IN THE DAILY PAPER A LONG WITH THEIR QUARTERLY SHAREHOLDERS REPORT CLOTHESTIME INVESTORS RECEIVE A FASHION DIVIDEND A COUPON GOOD FOR A ONETIME 20 DISCOUNT ON MERCHANDISE AT THE 503STORE WOMEN'S DISCOUNT APPAREL CHAIN THE STEADY SLUMP IN SALES OF MEN'S SUITS SPARKS A NEW AD CAMPAIGN BY THE CLOTHING MANUFACTURERS ASSOCIATION TRADE GROUP THE ADS LIST REASONS TO SUIT UP INCLUDING IF YOU DRESS LIKE YOUR BOSS HE'LL BE MORE LIKELY TO APPRECIATE YOUR COMPANY 9309070003 930907 CORRECTIONS & AMPLIFICATIONS TOYOTA MOTOR CORP'S SHARE OF THE US VEHICLE MARKET SLIPPED FIVETENTHS OF A PERCENTAGE POINT TO 74 FOR THE YEAR THROUGH THE END OF JULY FROM 79 FOR THE FIRST SEVEN MONTHS OF 1992 AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT TOYOTA'S SHARE HAD DECLINED FIVE PERCENTAGE POINTS INTUIT INC AS PART OF ITS ACQUISITION OF CHIPSOFT INC EXPECTS TO TAKE A CHARGE OF ABOUT 100 MILLION AGAINST EARNINGS IN ITS FISCAL FIRST QUARTER ENDING DEC 31 1993 AN ARTICLE FRIDAY INCORRECTLY SAID THE CHARGE WOULD BE TAKEN IN THE FIRST QUARTER ENDING DEC 31 1994 THE FEDERAL LAW PROVIDING FOR THE APPOINTMENT OF INDEPENDENT COUNSELS HAS EXPIRED BUT THE ATTORNEY GENERAL STILL HAS DISCRETION TO APPOINT SPECIAL PROSECUTORS IN AN ARTICLE FRIDAY ABOUT THE POSSIBLE MISUSE OF STATE DEPARTMENT PERSONNEL FILES IT WAS INCORRECTLY STATED THAT THE LAW ON SPECIAL PROSECUTORS HAD EXPIRED HILO AUTOMOTIVE INC'S SALES AT STORES OPEN A YEAR OR MORE FOR THE FIRST EIGHT MONTHS OF THE YEAR ROSE 01 AN ARTICLE FRIDAY INCORRECTLY REPORTED THE FIGURE AS 61 VARIAN ASSOCIATES INC BASED IN PALO ALTO CALIF SAID IT ACQUIRED INTERAY INTERNATIONAL XRAY TUBE CORP OF CHARLESTON SC TO BECOME PART OF ITS SALT LAKE CITYBASED XRAY TUBE OPERATIONS IN FRIDAY'S BUSINESS BRIEFS SECTION VARIAN'S HEADQUARTERS AND INTERAY'S NAME WERE MISSTATED 9309070002 930907 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR TWO OF THE MOST ZEALOUS INFLATION HAWKS THE BOND MARKET AND THE FEDERAL RESERVE BOARD HAVE TO BE PLEASED WITH WHAT THEY'RE SEEING THESE DAYS WITH CONSUMER PRICES INCREASING AT A MEAGER 19 ANNUAL RATE AND PRODUCER PRICES FALLING FOR TWO CONSECUTIVE MONTHS IT'S CLEAR INFLATION IS WELL UNDER CONTROL BOND INVESTORS WHO NORMALLY FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN ARE SHOWING THEIR CONFIDENCE IN THE FUTURE BY FUELING A ROARING BULL MARKET AND THE FED WHICH SAID IT WOULD RAISE INTEREST RATES IF IT FELT INFLATION WERE A REAL THREAT MUST BE PLEASED THE FIRST OF THE INFLATION DATA FOR THE AUGUST THE PRODUCER PRICE INDEX SHOULD REVEAL NO NEW PRICE PRESSURES WHEN IT IS RELEASED THIS WEEK SAID MARTIN REGALIA CHIEF ECONOMIST AT THE US CHAMBER OF COMMERCE IT PROBABLY WON'T BE A NEGATIVE AGAIN BUT IT WILL BE NO MORE THAN A 01 OR 02 INCREASE HE SAID WE'RE STILL IN A VERY GOOD PRICE MODE WE'RE NOT EXPECTING ANYTHING UNTOWARD IN THE PRICE DATA THE SURVEY OF AUGUST PRODUCER PRICES COULD SHOW A BLIP IN GRAIN PRICES BECAUSE OF THE MIDWEST FLOODING BUT NOTHING THAT WILL BE TOO PRONOUNCED MR REGALIA ADDED 9309070001 930907 IF ONLY THIS STUFF WORKED ON SPILLS AROUND THE HOUSE OILEATING BACTERIA CAN'T GET ENOUGH OF INIPOL A FERTILIZER THAT PROVED ITSELF IN VALDEZ BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL PARIS IT LOOKS LIKE FINE COGNAC SMELLS OF OLIVE OIL AND CAN CAUSE A POPULATION EXPLOSION SOME BUGS IN ALASKA LOVED THE STUFF THAT'S WHERE SOCIETE NATIONALE ELF AQUITAINE SOLD ITS FIRST BIG ORDER OF THE CURIOUS COCKTAIL INIPOL EAP22 ABOUT 500 TONS OF IT WAS SPRAYED ON OIL SPILLED BY THE EXXON VALDEZ IN 1989 PROVIDING ESSENTIAL NUTRIENTS FOR BACTERIA THAT NATURALLY RENDER OIL HARMLESS BUT DON'T NATURALLY OCCUR IN SUFFICIENT QUANTITY TO DO A THOROUGH JOB INIPOL A KIND OF BUG TONIC KEEPS THE BACTERIA NOURISHED AND MULTIPLYING BERNARD TRAMIER WHO WAS INSTRUMENTAL IN DEVELOPING INIPOL AT ELF'S LABS IN PAU FRANCE KEEPS A GLASS BOTTLE OF THE ELIXIR ON A BOOKSHELF IN HIS OFFICE IN THE WAR WITH SPILLED OIL HE CONSIDERS INIPOL A FINISHING WEAPON TO BE USED AFTER OTHER METHODS HAVE DONE AWAY WITH SOME OF THE PETROLEUM WASHING ASHORE IT IS UNIQUELY SUITED TO THE TASK HAVING AN AFFINITY FOR OIL AND AN ABILITY TO PENETRATE IT AND STAY THERE WHAT'S MORE IT ISN'T SOLUBLE IN WATER AND CONSEQUENTLY WON'T EASILY WASH AWAY WE HAVEN'T SEEN ANY OTHER COMMERCIAL PRODUCT LIKE IT SAYS MR TRAMIER ELF'S DIRECTOR FOR ENVIRONMENT AND A CHEMIST BY TRAINING INIPOL'S DEVELOPMENT REFLECTS AS MUCH THE OIL INDUSTRY'S SEARCH FOR BETTER WAYS TO DEAL WITH SPILLS AS IT DOES THE INADEQUACY OF ANY ONE METHOD OR EVEN A COMBINATION OF THEM TO CLEAN UP OIL MOST OF THE OIL IN A SPILL HAS TO EVAPORATE OR BE LEFT TO BIODEGRADE SOMETHING THAT RAISES THE HACKLES OF ENVIRONMENTALISTS MR TRAMIER SAYS 90 TO 95 OF OIL EVENTUALLY BIODEGRADES STILL SOME HEAVIER COMPONENTS SUCH AS TAR AND ASPHALT ARE RELATIVELY IMMUNE TO THIS PROCESS AS ARE OILWATER EMULSIONS THE BACTERIA THAT THRIVE ON OIL LIKE OIL ITSELF HAVE BEEN AROUND FOR MILLIONS OF YEARS THEY CLEAN UP NATURALLY SPILLED OIL SUCH AS SEEPAGES BY TURNING IT INTO BIOMASS WHICH THEN ENTERS THE FOOD CHAIN HUMAN KNOWLEDGE OF THESE MICROORGANISMS HOWEVER GOES BACK ONLY A FEW DECADES THE AMERICAN PETROLEUM INSTITUTE FOR INSTANCE BEGAN SUBSIDIZING RESEARCH ON THE TOPIC IN 1942 THE RENEWED INTEREST IN MANIPULATING BACTERIA TO ACCELERATE THE CLEANUP OF OIL SPILLS HAS BEEN TRIGGERED BY RAPID GAINS IN THE FIELDS OF GENETICS AND MOLECULAR BIOLOGY IN THE 1980S AND BY THE RESULTS OF TRIALS AFTER THE EXXON VALDEZ DISASTER A REPORT BY THE US CONGRESSIONAL OFFICE OF TECHNOLOGY ASSESSMENT NOTED THAT THE ADDITION OF NUTRIENTS ON SOME ALASKAN COBBLE BEACHES INCLUDING INIPOL AND SOME WATERSOLUBLE PRODUCTS AT LEAST DOUBLED THE NATURAL RATE OF BIODEGRADATION WHILE THE REPORT VIEWED THE RESULTS AS ENCOURAGING IF NOT ALTOGETHER CONCLUSIVE IT SAID THE USEFULNESS OF SUCH METHODS WAS STILL BEING EVALUATED THERE ARE PROPONENTS OF SEEDING OR ADDING NATURALLY OCCURRING OILEATING BUGS TO A SPILL SITE AND OF GENETICALLY ENGINEERING MICROORGANISMS TO DEAL WITH SPECIFIC VARIETIES OF OIL BUT NEITHER OF THESE METHODS HAS PROVED ITSELF YET IT'S TRUE THAT THERE ARE PEOPLE OUT THERE WHO ARE ENTHUSIASTIC ABOUT SELLING MICROORGANISMS SAYS JENNIFER BAKER AN INDEPENDENT OILPOLLUTION CONSULTANT IN BRITAIN BUT SHE AND OTHER EXPERTS DON'T SEE ANY NEED TO SPREAD A FEW MILLION BUGS ON OILSPILL SITES MOST ENVIRONMENTS ALREADY HAVE OILEATING BUGS AND LOCAL BUGS ARE BETTER ADAPTED TO THEIR OWN ENVIRONMENT STILL THERE USUALLY AREN'T ENOUGH OF THEM INITIALLY TO COPE WITH THE LARGE AMOUNT OF OIL THAT RESULTS FROM SPILLS AND WHEN THEY DO BEGIN TO MULTIPLY AS THEY PROCESS THE OIL THEIR GROWTH IS RESTRICTED BY THE NUTRIENTS AVAILABLE ENTER INIPOL WHICH ENCOURAGES RESIDENT OILEATING MICROORGANISMS TO MULTIPLY RAPIDLY BY PROVIDING THEM WITH ESSENTIAL NUTRIENTS LIKE PHOSPHORUS AND NITROGEN ELF'S MR TRAMIER SAYS THAT IN AN ENVIRONMENT WHERE OILEATING BUGS WERE ABOUT 1 OF THE TOTAL THE USE OF INIPOL WOULD RESULT IN AN EXPLOSION IN THEIR NUMBERS TO A RELATIVE CONCENTRATION OF AS MUCH AS 40 THE OIL INDUSTRY HAS BEEN FOCUSING ON THIS SOCALLED BIOREMEDIATION IN THE ABSENCE OF RADICAL NEW WAYS TO COPE WITH SPILLED OIL SPILL FIGHTERS CAN USE BOOMS TO CONTAIN A SPILL SKIMMERS TO SIPHON IT OFF CHEMICAL DISPERSANTS TO BREAK IT UP A PROCESS WHICH DEPENDS ON BIODEGRADATION EVENTUALLY AND FIRE TO BURN IT BUT THESE PREFERRED INSTANTRESPONSE METHODS HAVE LIMITATIONS AS THEIR USE HAS PROVEN TO BE DIFFICULT IF NOT IMPRACTICAL OR INADVISABLE FOR ENVIRONMENTAL AND SAFETY REASONS IN PRACTICE NOT A LOT OF OIL IS PICKED UP ABOUT 40 OF AN OIL SPILL EVAPORATES THE LIGHTER THE OIL THE MORE THE EVAPORATION IN THE FIRST 48 HOURS IF CIRCUMSTANCES PERMIT AND THEY USUALLY DON'T CLOSE TO SHORE OR IN BAD WEATHER THE OIL MAY BE SET ALIGHT OR SKIMMED FOR DISPOSAL IN OTHER WAYS SENSITIVE COASTAL AREAS MAY BE PROTECTED BY BOOMS IF WAVES AREN'T STRONG ENOUGH TO WASH OVER THEM BUT TANKER ACCIDENTS OFTEN OCCUR IN BAD WEATHER ESSENTIALLY MUCH OF WHAT DOESN'T EVAPORATE HAS TO BE LEFT TO MICROORGANISMS IN ALASKA INIPOL WAS APPLIED ON BEACHES AFTER SOME OIL HAD BEEN REMOVED UNDER STEAMED PRESSURE THE US ENVIRONMENTAL PROTECTION AGENCY FOUND THAT THE ELF TONIC MADE BIODEGRADATION TWO TO THREE TIMES FASTER MOREOVER IT DIDN'T HAVE ANY ADVERSE ECOLOGICAL EFFECTS AND PROVED EASY TO USE ELF NOW IS CONCENTRATING ON DEVELOPING A PRODUCT LIKE INIPOL BUT CHEAPER A KILOGRAM OF INIPOL COSTS ABOUT 40 FRENCH FRANCS 691 FOR THE ALASKAN SPILL ELF SUPPLIED EXXON CORP AT COST SINCE THEN IT HAS CHARGED MORE BUT INIPOL WON'T BE A BIG MONEY MAKER FOR ELF MR TRAMIER SAYS 9309070161 930804 ENTERPRISE SMALL BUSINESSES GRAPPLE WITH EXPENSE OF SAVING EARTH ENTREPRENEURS PICK UP TAB FOR RISING NUMBER OF RECYCLING MANDATES BY MELISSA LEE STAFF REPORTER OF THE WALL STREET JOURNAL THOUGH RECYCLING EFFORTS HAVE LOST MOMENTUM LATELY IN SOME CITIES SUCH AS SEATTLE NEW CITIES AND STATES KEEP ISSUING RULES REQUIRING MORE BUSINESSES TO RECYCLE THESE LAWS ONCE FOUND IN ONLY A HANDFUL OF COMMUNITIES ARE BECOMING AS COMMON AS ROADSIDE BEER CANS SINCE 1990 EIGHT STATES AND THE DISTRICT OF COLUMBIA HAVE IMPLEMENTED COMMERCIAL AND INSTITUTIONAL RECYCLING LAWS INCREASING THE NUMBER OF STATES WITH SUCH REQUIREMENTS TO 40 SAYS KATHLEEN MEADE A SPOKESWOMAN FOR THE NATIONAL RECYCLING COALITION IN WASHINGTON DC ABOUT ONETHIRD OF 248 CITIES POLLED REQUIRE OFFICE PAPER BE RECYCLED ACCORDING TO A DECEMBER 1992 SURVEY BY THE US CONFERENCE OF MAYORS AMONG THOSE RECENTLY MANDATING IT NEW YORK CAMBRIDGE MASS HARRISBURG PA AND PROVIDENCE RI IN TERMS OF THE ENTIRE COUNTRY THERE WILL BE MANDATORY RECYCLING IN EVERY MAJOR COMMUNITY WITHIN THE NEXT FIVE TO 10 YEARS SAYS DAVID GATTON SENIOR ENVIRONMENTAL ADVISER AT THE CONFERENCE MOST RECYCLING LAWS FORCE BUSINESSES TO PICK UP THE TAB FOR THEIR ECOLOGICAL EFFORTS LARGE CORPORATIONS OFTEN PROFIT BY SELLING THEIR LARGER STEADIER VOLUMES OF WASTE BUT MANY SMALLER BUSINESSES MUST SCROUNGE TO FIND WAYS TO DEAL WITH THE MANDATES ECONOMICALLY STILL EVEN THOSE CRITICAL OF RECYCLING'S COSTS ADMIT THAT REDUCED WASTE BENEFITS THE ENVIRONMENT HELPING THE ENVIRONMENT TENDS TO HURT SMALLER FIRMS BECAUSE THEY USUALLY GENERATE ONLY A STACK OF NEWSPAPERS AND A SMALL NUMBER OF CARDBOARD BOXES A WEEK ANYBODY WHO SAYS RECYCLING SAVES MONEY THAT'S NOT TRUE SAYS WERNER JONAS OWNER OF DUTCH MASTERS MEAT A MAKER OF HOT DOGS SMOKED HAMS AND OTHER PROCESSED MEATS IN HARRISBURG MR JONAS MUST COMPLY WITH STATE RECYCLING REGULATIONS FOR CORRUGATED CARDBOARD ALUMINUM CANS AND OFFICE PAPER UNDER THE RULES EFFECTIVE SINCE 1990 MR JONAS HAD TO SUBMIT A RECYCLING PLAN AND HIRE A HAULER TO WEEKLY CART AWAY ABOUT 200 FLATTENED CARDBOARD BOXES TWO BAGS OF CAFETERIA SODA CANS AND A COUPLE OF BOXES OF COMPUTER PAPER TO ENSURE SEPARATION OF MATERIALS INTO THE PROPER BINS HE PUT AN EMPLOYEE IN CHARGE OF POLICING THE STAFF'S TRASH HABITS MR JONAS SAYS THE WORKER'S NEW DUTIES REQUIRED A RAISE OF 50 CENTS PER HOUR TO ABOUT 8 AN HOUR BUT SEPARATING RECYCLABLES FROM REGULAR TRASH HAS INCREASED BY 1500 THE MEAT PROCESSOR'S 20000 ANNUAL COST OF GARBAGE PICKUP IN THE MEAT BUSINESS YOU HAVE TO SELL QUITE A FEW POUNDS OF MEAT TO MAKE 1500 MR JONAS NOTES FOR OTHER SMALL BUSINESSES RECYCLING REQUIREMENTS EVEN CUT INTO DEMAND FOR THEIR SERVICES REX GULICKSON A SERVICE STATION OWNER IN SIOUX FALLS SD SAYS NEW FEDERAL AND STATE REGULATIONS HAVE FORCED HIM TO STOP MAKING VEHICLE AIRCONDITIONING REPAIRS A REVENUE LOSS OF BETWEEN 5000 AND 7000 DURING AN AVERAGE SUMMER HE SAYS HE CEASED THE REPAIRS IN JANUARY BECAUSE HE COULDN'T AFFORD TO BUY A 3500 FREON RECYCLING MACHINE THE OWNER OF REX'S 66 FULL SERVICE ALSO HAD TO CHANGE THE WAY HE DISPOSES OF USED TIRES BECAUSE SIOUX FALLS BANNED WHOLE TIRES FROM ITS LANDFILL LAST MONTH NOW TIRES ARE CARTED AWAY SHREDDED AND THEN SENT TO THE LANDFILL OR A NEARBY ENERGY PLANT FOR INCINERATION MR GULICKSON IS CHARGING CUSTOMERS ABOUT A DOLLAR A TIRE FOR THE ADDED DISPOSAL COSTS SO FAR HE SAYS THEY HAVEN'T BALKED AT CONCORDIA MANUFACTURING CO IN COVENTRY RI MANDATORY RECYCLING HAS MEANT NOT ONLY INCREASED EXPENSE FOR THE COMPANY BUT AN INCONVENIENCE FOR WORKERS SAYS PAUL BOGHOSSIAN PRESIDENT OF THE TECHNICALFIBERS PRODUCER IN FACT HE NOTES COSTS HAVE CONTINUED TO RISE IN THE FOUR YEARS SINCE THE FIRM BEGAN RECYCLING CORRUGATED CARDBOARD AND MOST OF ITS YARN WASTE TO MEET STATE GUIDELINES MR BOGHOSSIAN SAYS THE RECYCLING RULES HAVE SO FLOODED THE MARKET FOR YARN WASTE THAT HE MUST PAY A HAULER TO TAKE WASTE YARN UNTIL A FEW YEARS AGO HE MADE A SMALL PROFIT SELLING IT TO THE SAME HAULER HE ALSO MUST PAY THE HAULER 60 PER TON TO TOW HIS CARDBOARD ON TOP OF THE EXTRA HAULING EXPENSE MR BOGHOSSIAN HAD TO SACRIFICE VALUABLE INVENTORY STORAGE SPACE IN HIS 100000SQUAREFOOT FACTORY FOR RECEPTACLES FOR RECYCLABLE CARDBOARD BECAUSE THE HAULER WILL PICK UP ONLY A TRUCKLOAD OF CARDBOARD IT TAKES A WEEK TO ACCUMULATE ENOUGH MR BOGHOSSIAN SAYS AS A RESULT THE FACTORY IS GLUTTED WITH FLATTENED BOXES TOWARD THE END OF EACH WEEK I'VE HAD SEVERAL EMPLOYEES GROUSE TO ME THAT THEY WERE TRIPPING ALL OVER THE CARDBOARD BECAUSE IT TAKES UP SO MUCH SPACE IN THE FACTORY SAYS MR BOGHOSSIAN SOME STATES ARE STARTING TO HEED THE LAMENTS OF BUSINESSES HARSHLY AFFECTED BY RECYCLING MANDATES IN MICHIGAN FOR INSTANCE A BOTTLEDEPOSIT LAW HAS TURNED INTO SUCH A FINANCIAL BURDEN FOR SMALL RETAILERS THAT THE STATE IS CONSIDERING LEGISLATION TO DIRECT PART OF THE DIMEPERCONTAINER REFUND TO EACH STORE OWNER WHO USUALLY BEARS THE BURDEN OF CONTAINER COLLECTION AT KEN'S VILLAGE MARKET IN THE MICHIGAN VACATION SPOT OF INDIAN RIVER CUSTOMERS SEEK REFUNDS ON MORE THAN A MILLION BOTTLES AND CANS A YEAR REPORTS STORE MANAGER JEFF SWADLING THE RECYCLING PROGRAM BEGUN MORE THAN A DECADE AGO COSTS THE STORE 25000 A YEAR MR SWADLING SAYS IT TAKES 80 HOURS OR MORE A WEEK ABOUT 480 TO RUN THE BOTTLE RECYCLING CENTER AT THE MARKET THE TOWN'S LARGEST GROCERY STORE THE EXPENSE HAS BEEN OUR NIGHTMARE THE GROCER OBSERVES THE STATE LAW AFFECTS WHETHER OR NOT WE STAFF AS MANY PEOPLE DURING THE SLOW SEASON BECAUSE THERE ARE ONLY SO MANY HOURS WE CAN PAY FOR HE ADDS DURING THE WINTER IF PEOPLE TURN IN BOTTLES AND CANS WE CAN'T JUST LET THEM PILE ON THE FLOOR WE HAVE TO HIRE SOMEONE TO COLLECT THEM WE DON'T HAVE A CHOICE MR SWADLING SAYS HE IS BARELY BREAKING EVEN ON HIS VOLUNTARY EFFORTS TO RECYCLE PLASTIC BAGS AND CORRUGATED CARDBOARD UNTIL THE DAY MORE PEOPLE ARE FORCED TO DO IT OR IT BECOMES MORE ECONOMICAL TO DO PEOPLE JUST WON'T RECYCLE HE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR RECYCLING BECOMING A MARKET FORCE WSJ SEPT 7 1993 9308040134 YY93 MM09 9309070147 930803 TRASH DANCE RECYCLING IN SEATTLE SETS NATIONAL STANDARD BUT IS HITTING SNAGS SOME QUESTION ITS 60 GOAL WITH MARKETS SATURATED AND MERCHANTS RESISTANT TOO MUCH OF A GOOD THING BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE IT IS MONDAY NIGHT GARBAGE NIGHT HERE AND AS USUAL JANICE D'ACQUISTO IS DANCING IN HER TRASH CAN KNEES BENT ARMS PUMPING MS D'ACQUISTO JUMPS UP AND DOWN IN THE 30GALLON CAN MASHING DOWN A WEEK'S WORTH OF LEAVINGS THAT SHE HER TWO DAUGHTERS AND HER GRANDDAUGHTER HAVE PRODUCED ACROSS THE CITY OTHERS ARE PERFORMING SIMILAR CAN DANCES KNOWN HERE AS THE SEATTLE STOMP TO GET RESIDENTS TO RECYCLE SEATTLE CHARGES HEAVILY FOR EACH EXTRA BARREL OF GARBAGE THEY PUT OUT HENCE THE STOMP YOU CLIMB IN JUMP AROUND AND EVENTUALLY IT ALL FITS IN ONE CAN MS D'ACQUISTO SAYS PROUDLY HUMAN TRASH COMPACTING WASN'T QUITE WHAT OFFICIALS HAD IN MIND FIVE YEARS AGO WHEN SEATTLE ANNOUNCED A PLAN TO RECYCLE 60 OF ITS GARBAGE BY 1998 SINCE THEN SEATTLE'S AMBITIOUS PROGRAM HAS BECOME A BIGCITY BENCHMARK WITH A REMARKABLE 42 OF ALL THE CITY'S TRASH GOING INTO RECYCLING BINS AND 90 OF ALL SINGLEFAMILY HOMES PARTICIPATING CITY OFFICIALS BOAST THAT HUNDREDS OF COMMUNITIES HAVE SENT DELEGATIONS HERE TO LEARN THEIR SECRETS SEATTLE IS THE NATION'S MOSTDISCUSSED URBAN RECYCLING PROGRAM SAYS JERRY POWELL EDITOR IN CHIEF OF RESOURCE RECYCLING A PORTLAND ORE TRADE JOURNAL BUT BENEATH THIS MOUND OF HOOPLA A TROUBLING FACT HAS BEGUN TO EMERGE SEATTLE'S RECYCLING PROGRAM IS QUIETLY RUNNING OUT OF STEAM MOST EXPERTS SAY THE CITY WON'T COME CLOSE TO ITS 60 TARGET WITHOUT DRACONIAN STEPS LIKE FINING NONPARTICIPANTS BIG WASTE GENERATORS LIKE APARTMENT COMPLEXES AND SMALL BUSINESSES HAVE SHOWN ONLY TEPID INTEREST IN RECYCLING OR HAVE REBELLED SOME RECYCLED MATERIALS SUCH AS GLASS ARE BEING STOCKPILED BECAUSE THEY CAN'T BE SOLD AND HAVE EVEN BEEN DUMPED IN LANDFILLS SEATTLE HAS HAD TO ENTANGLE ITSELF IN A RISKY LONGTERM COMMITMENT TO SHOULDER THE LOSSES OF RECYCLING CONTRACTORS EVEN LOCAL RECYCLING PIONEERS SUCH AS FORMER MAYOR CHARLES ROYER DON'T SOUND AS CERTAIN AS THEY ONCE DID THAT SEATTLE WILL ACHIEVE ITS RECYCLING GOAL MOST OF US ARE KIND OF SKEPTICAL SAYS MR ROYER NOW A TEACHER AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT I DON'T KNOW HOW IT'S GOING TO WORK OUT AS IT HAPPENS THE CHIEF MOTIVATION FOR SEATTLE'S RECYCLING EFFORT A PURPORTED GARBAGE CRISIS OWING TO A LACK OF DUMPS SEEMS TO HAVE BEEN A MIRAGE REGIONAL LANDFILLS OPENED IN WASHINGTON AND OREGON SINCE 1988 HAVE THE CAPACITY TO ABSORB SEATTLE'S GARBAGE FOR NEARLY ANOTHER CENTURY WITH OR WITHOUT RECYCLING WHETHER SEATTLE IS SAVING MONEY BY RECYCLING INSTEAD OF DUMPING SEEMS TO BE ANYONE'S GUESS A RECENT STATE STUDY FOUND THAT IT COSTS 40 A TON LESS TO RECYCLE WHEN SEATTLE'S GARBAGE IS CALCULATED BY WEIGHT AS THE CITY DOES BUT WHEN THE STUDY CALCULATED THE COST OF THE SAME GARBAGE BY VOLUME AS HAULERS DO RECYCLING AND DUMPING CAME OUT COSTING ABOUT THE SAME A SIGNIFICANT SHORTFALL IN SEATTLE'S HIGHPROFILE PROGRAM WOULD HAVE A MAGNIFIED NATIONAL IMPACT DOZENS OF CITIES AND STATES HAVE FOLLOWED SEATTLE'S EXAMPLE BANKING ON RECYCLING LARGE PORTIONS OF THEIR WASTE AS A SOLUTION FOR THEIR GARBAGE PROBLEMS NEW JERSEY FOR EXAMPLE LAST YEAR TARGETED 60 OF ITS SOLID WASTE FOR RECYCLING BY 1996 AND 22 OTHER STATES AIM TO RECYCLE AT LEAST 40 BUT AS CITIES AND STATES LEAP ON THE RECYCLING BANDWAGON A GROWING NUMBER OF SKEPTICS QUESTION WHETHER EVERHIGHER RECYCLING TARGETS ARE USEFUL OR NECESSARY THERE HAS BEEN A RECYCLEORDIE MOVEMENT THAT HAS MADE SOME FALSE ASSUMPTIONS CONTENDS RESOURCE RECYCLING'S MR POWELL WHO HEADS THE INDUSTRY'S NATIONAL RECYCLING COALITION RECYCLING ZEALOTS MR POWELL SAYS BELIEVED THEY COULD AVOID DUMPS AND GENERATE THOUSANDS OF NEW JOBS RELATED TO RECYCLING MATERIALS THAT AIN'T GONNA HAPPEN HE SAYS CRITICS LIKE HARVEY ALTER MANAGER OF THE US CHAMBER OF COMMERCE'S RESOURCES POLICY DEPARTMENT CONTEND THAT RECYCLING HAS BUILTIN LIMITS AND NO BIG CITY CAN HOPE TO SALVAGE MUCH MORE THAN 30 OF ITS GARBAGE ADDING IN YARD WASTE SUCH AS LEAVES AND HEDGE CLIPPINGS MAY BOOST THAT ANOTHER 10 HE SAYS AFTER THAT HE ARGUES MUNICIPAL OFFICIALS START USING SMOKE AND MIRRORS TO BOOST THEIR FIGURES SOME CITIES HE SAYS PAD THEIR SOLIDWASTE FIGURES WITH SCRAP IRON AND OLD CARS WHICH WOULD HAVE BEEN RECYCLED ANYWAY WHILE OTHERS SIMPLY DROP HARDTORECYCLE MATERIALS FROM THEIR STATISTICS SEATTLE'S RECYCLING OFFICIALS BRISTLE AT ALL THIS NEGATIVISM I DON'T THINK 60 IS PIE IN THE SKY AND WE CAN BACK THAT UP WITH A WHOLE LOT OF ANALYSIS SAYS RAYMOND HOFFMAN SEATTLE'S SENIOR RECYCLING PLANNER HE SAYS SEATTLE CAN MEET ITS TARGET BY COMPOSTING FOOD WASTE AND ADDING MORE WASTE PAPER TO ITS RECYLABLES THE PROGRAM ALSO NEEDS MORE BUSINESS INVOLVEMENT HE SAYS NANCY GLAZER DIRECTOR OF SEATTLE'S SOLID WASTE UTILITY CALLS THE 60 TARGET AMBITIOUS AND SAYS HER AGENCY IS REASSESSING THE COST OF ATTAINING ITS GOAL BUT SHE SAYS AT THIS POINT I DON'T KNOW OF ANY ECONOMIC OR POLITICAL REASON TO BACK AWAY FROM IT OFFICIALS HERE SCOFF AT CITIES THAT BOOST THEIR RECYCLING FIGURES BY INCLUDING OLD CARS AND THE LIKE WE DON'T DOCTOR OUR PICKUPS BOASTS MR HOFFMAN BUT THEY CONCEDE THAT SEATTLE'S PROGRAM GOT A JUMP BECAUSE WHEN IT BEGAN PRIVATE HAULERS ALREADY WERE RECYCLING 24 OF ITS TRASH IT GOT ANOTHER BOOST FROM A FIERCE WINDSTORM THAT SWEPT THROUGH HERE EARLY THIS YEAR LEAVING HUGE PILES OF DEBRIS WHICH PROMPTLY WERE COUNTED INTO RECYCLING TOTALS AS YARD WASTE SEATTLE'S IMPRESSIVE RESIDENTIAL RECYCLING FIGURES ALSO HAVE BEEN HELPED BY ITS PRACTICE OF FIGURING RECYCLING FEES INTO MONTHLY HOUSEHOLD GARBAGE BILLS THAT PRODUCES TWO RESULTS RESIDENTS CUT THEIR GARBAGE OUTPUT OR STOMP ON IT HARDER AND MANY OF THEM BELIEVE THE RECYCLING SERVICE IS FREE BECAUSE THEY DON'T SEE A SEPARATE CHARGE FOR IT BUT CITY BUSINESSES WHICH ARE BILLED SEPARATELY FOR RECYCLING IF THEY PARTICIPATE HAVE BEEN LESS ENTHUSIASTIC A POLL OF 2000 OF THEM SHOWED BARELY HALF RECYCLED AND MANY COMPLAINED IT WAS COSTING THEM TOO MUCH AT THE ELITE TAVERN IN THE CITY'S CAPITAL HILL DISTRICT MANAGER RICHARD LAPRAY SAYS HE DROPPED OUT IN MAY PARTLY BECAUSE RECYCLING WAS COSTING HIS BUSINESS NEARLY 150 A MONTH TO PARTICIPATE WE WERE FILLING TWO BINS A WEEK WITH ALL KINDS OF BROKEN COLORED GLASS AND I KNEW THEY COULDN'T RECYCLE THAT STUFF MR LAPRAY SAYS IT WAS JUST ENDING UP IN A LANDFILL SOMEWHERE SO WHY BOTHER MR LAPRAY ISN'T FAR OFF BESIDES BECOMING A RECYCLING MODEL SEATTLE ALSO HAS BECOME A MODEL FOR RECYCLING'S BUILTIN PITFALL THE MORE ACTIVE THE PROGRAM THE MORE IT FLOODS LIMITED MARKETS DEPRESSING RESALE PRICES AND RAISING PROGRAM COSTS TAKE GREEN GLASSPLEASE THE STUFF FETCHED 30 A TON HERE TWO YEARS AGO BUT SEATTLE COLLECTED 40000 TONS OF THE GLASS LAST YEAR OVERWHELMING THE STATE'S LONE COMMERCIAL GLASS FURNACE WHICH CAN HANDLE ONLY 32000 TONS A YEAR RESIDENTS STILL DUTIFULLY TOSS THEIR GREEN GLASS BOTTLES INTO RECYCLING BINS BUT AS THE RESALE PRICE HAS DROPPED TO ZERO HAULERS HAVE BEEN STOCKPILING IT AND HOPING SOMEONE SOMEWHERE WILL TAKE IT OFF THEIR HANDS CITY AND STATE OFFICIALS ARE SEARCHING HARD FOR MARKETS FOR USED GLASS PLASTIC AND PAPER BUT PILOT EFFORTS BY PROCTER & GAMBLE CO TO CREATE OUTLETS HERE FOR COLORED PLASTICS AND DISPOSABLE DIAPERS PROVED UNPROFITABLE AND WERE DROPPED JOHNSON CONTROLS INC WHICH MAKES PLASTIC SODA BOTTLES SUBSIDIZED COLLECTION OF THE BOTTLES HERE FOR THE LAST FOUR YEARS HOPING A MARKET WOULD OPEN UP IT SAYS IT LOST MONEY AND PLANS TO DROP THE OPERATION AT THE END OF THE YEAR WE WANTED TO PRIME THE PUMP SAYS FLOYD FLEXON JOHNSON DIRECTOR OF RECYCLING BUT WE'RE NOT GOING TO DO IT FOREVER MAKING THIS WORK IS FAR MORE DIFFICULT THAN ANYONE ENVISIONED WHEN WE STARTED SAYS DAVID DOUGHERTY DIRECTOR OF THE CLEAN WASHINGTON CENTER A STATEFUNDED EFFORT TO FIND NEW MARKETS FOR RECYCLED MATERIAL MR DOUGHERTY SAYS FINDING MARKETS FOR RECYCLABLES CAN BE ACCOMPLISHED BUT IT'S GOING TO BE EXPENSIVE ADDS MR ROYER THE FORMER MAYOR YOU CAN'T JUST STORE THIS STUFF AND SAY YOU'RE RECYCLING SEATTLE'S DETERMINATION TO KEEP ITS PROGRAM GOING WAS UNDERSCORED LAST OCTOBER WHEN THE CITY QUIETLY RENEGOTIATED AN UNUSUAL CLAUSE IN ITS AGREEMENT WITH RABANCO COS AND WASTE MANAGEMENT INC A UNIT OF WMX TECHNOLOGIES INC THE TWO CONTRACTORS THAT PICK UP AND DISPOSE OF THE CITY'S RECYCLABLES UNDER THE PROVISION THE AGENCY AGREED TO MAKE UP ANY LOSSES THE HAULERS INCURRED TRYING TO SELL RECYCLABLES IN EFFECT PUTTING SEATTLE INTO FUTURES SPECULATION WITH RECYCLABLES AS THE COMMODITY OFFICIALS HERE CALL THE ARRANGEMENT RISKSHARING ALTHOUGH THE RISK SEEMS TO REST WITH THE CITY OTHER COMMUNITIES HAVE SIMILAR PROGRAMS COVERING RECYCLERS' LOSSES WHEN COMMODITY PRICES FALL BUT SEATTLE IS THE ONLY CITY THAT SETS NO LIMIT ON ITS POTENTIAL LOSSES CITY OFFICIALS INSIST THEY WILL COME OUT AHEAD BECAUSE DEMAND FOR NEWSPRINT WHICH MAKES UP ABOUT A THIRD OF THE WASTE STREAM HERE IS GROWING WE'RE VERY BULLISH ON NEWSPRINT OVER THE NEXT FIVE YEARS SAYS THE SOLID WASTE UTILITY'S MR HOFFMAN OTHERS SAY SEATTLE IS IN OVER ITS HEAD WE TOLD THE BUREAUCRATS YOU'RE PLAYING IN A VERY SENSITIVE MARKETPLACE' SAYS WARREN RAZORE WHOSE LOCALLY BASED COMPANY RABANCO HAS RUN RECYCLING PROGRAMS HERE SINCE 1965 MR RAZORE SAYS A MERE 5 JUMP IN THE SUPPLY OF SOME KINDS OF RECYCLABLES CAN DEPRESS THEIR RESALE VALUE BY HALF THE PRICE FOR NEWSPRINT BOBBED FROM A HIGH OF 75 A TON AT THE START OF THE RECYCLING PROGRAM HERE IN 1988 TO 30 A TON THREE YEARS AFTER THE CITY'S PROGRAM STARTED NEWSPRINT NOW SELLS FOR AROUND 45 A TON HERE RISING AFTER CALIFORNIA PASSED A LAW REQUIRING NEWSPAPERS TO CONTAIN 23 RECYCLED PAPER BUT MR RAZORE SAYS THE NEWSPRINT PRICE COULD PLUNGE AGAIN WHEN LOS ANGELES'S FLEDGLING RECYCLING PROGRAM HITS ITS STRIDE DUMPING AN EXPECTED 21000 TONS OF NEWSPRINT A MONTH ON THE MARKET WASTE PAPER WHICH MAKES UP AN EVEN LARGER SHARE OF SEATTLE'S RECYCLABLES HAS DONE EVEN WORSE THE PAPER SOLD FOR NEARLY 25 A TON FIVE YEARS AGO MOSTLY TO ASIAN MARKETS BUT AS RECYCLING TOOK HOLD AND OTHER COUNTRIES LIKE GERMANY BEGAN RECYCLING PAPER TO ASIA THE RESALE VALUE SKIDDED HAULERS HERE NOW PAY 25 A TON TO GET RID OF IT SO FAR SEATTLE HAS LOST MONEY EVERY MONTH SINCE IT SIGNED ITS RISKSHARING AGREEMENT WITH THE HAULERS WITH THE PAYOUTS STEADILY INCREASING TO ROUGHLY 80000 LAST MONTH UNDER ITS CONTRACT SEATTLE IS OBLIGATED TO MAKE GOOD ON THE CONTRACTORS' COMMODITYPRICE SHORTFALLS THROUGH 1998 MR RAZORE CALLS THE ARRANGEMENT GIFTWRAPPED GARBAGE BUT ALL THESE PROBLEMS MAY BE BESIDE THE POINT AS FAR AS SEATTLE IS CONCERNED EVEN IF THE CITY'S RECYCLING PROGRAM DOESN'T MEET EXPECTATIONS THE IDEA OF RECYCLING SEEMS MORE POPULAR THAN EVER BUSES BILLBOARDS AND NEWSPAPERS HERE CONSTANTLY EXHORT RESIDENTS TO RECYCLE STARBUCKS THE SEATTLEBASED COFFEE PURVEYOR KNOCKS 10 CENTS OFF ITS PRICES FOR PATRONS WHO RECYCLE THEIR CUPS ONE LOCAL GROUP KNOWN AS ZERO CANNERS BOASTS OF RECYCLING EVERYTHING SEATTLE TIMES COLUMNIST ROSS ANDERSON RECENTLY WROTE THAT THE CITY'S PREOCCUPATION WITH RECYCLING HAS TURNED THE PAPER OR PLASTIC CHECKOUTCOUNTER QUESTION INTO A THEOLOGICAL DILEMMA MR HOFFMAN THE RECYCLING PLANNER WOULDN'T CONSIDER HIS PROGRAM A FLOP EVEN IF IT DIDN'T REACH ITS 60 GOAL THERE'S A PUBLIC VALUE IN CONSERVATION OF RESOURCES HE SAYS AND SOMETIMES RECYCLING GIVES CITIES A CHANCE TO MAKE MONEY ON THROWAWAYS SAYS MR HOFFMAN WE'RE THE SAUDI ARABIA OF PAPER AND IT BEHOOVES US TO CAPITALIZE ON THAT SEE RELATED LETTERS LETTERS TO THE EDITOR RECYCLING BECOMING A MARKET FORCE WSJ SEPT 7 1993 CORRECTIONS & AMPLIFICATIONS ABOUT A THIRD OF THE WASTE COLLECTED FOR RECYCLING IN SEATTLE IS COMPOSED OF NEWSPRINT A PAGEONE ARTICLE AUG 3 INCORRECTLY SAID THE ONETHIRD WAS NEWSPRINT'S SHARE OF THE CITY'S ENTIRE WASTE COLLECTION WSJ AUG 20 1993 9308030019 9308200025 YY93 MM08 YY93 MM09 9309070096 930811 ADVERTISING FTC STAFF RECOMMENDS BAN OF JOE CAMEL CAMPAIGN BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THE STAFF OF THE FEDERAL TRADE COMMISSION HAS RECOMMENDED THAT THE FTC SEEK AN OUTRIGHT BAN OF RJ REYNOLDS'S HIGHLY EFFECTIVE JOE CAMEL ADVERTISING CAMPAIGN ON THE GROUND THAT THE SIXYEAROLD CAMPAIGN ENTICES MINORS TO SMOKE THE FIVE COMMISSIONERS ARE EXPECTED TO RULE ON THE RECOMMENDATION WITHIN 30 DAYS MORE THAN THREE YEARS AFTER THE FIRST COMPLAINT WAS FILED IF THE COMMISSION ACCEPTS THE STAFF'S RECOMMENDATION WHICH WAS DISCLOSED BY PEOPLE FAMILIAR WITH THE MATTER THE ADS WOULDN'T BE BANNED IMMEDIATELY THE ISSUE WOULD BE ASSIGNED TO AN ADMINISTRATIVE LAW JUDGE WHO WOULD CONDUCT A TRIAL THAT COULD TAKE SEVERAL YEARS A MOVE AGAINST REYNOLDS BY THE GOVERNMENT WOULD BE A DAMAGING BLOW TO THE RJR NABISCO HOLDINGS CORP UNIT WHICH IS LOCKED IN A PROFITLEACHING PRICE WAR WITH ITS FAR WEALTHIER RIVAL PHILIP MORRIS COS THE POPULARITY OF THE BADBOY CARTOON CAMEL HAS BEEN ONE OF RJ REYNOLDS'S FEW MARKETING SUCCESSES OF LATE DUE LARGELY TO THE CHARACTER'S APPEAL TO YOUNG SMOKERS THANKS TO THE LABORS OF REYNOLDS'S BEAST OF BURDEN THE SMOOTH CHARACTER APPEARS IN HIP POSES WOOING LADIES CAMEL WAS ONE OF THE FEW FULLPRICED CIGARETTES TO INCREASE ITS MARKET SHARE IN 1992 LAST YEAR CAMEL WAS ONE OF THE MOST HEAVILY ADVERTISED TOBACCO BRANDS AT 23 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS IN THE 1993 SECOND QUARTER CAMEL WAS THE NO 8 CIGARETTE BRAND IN THE COUNTRY WITH 37 OF THE MARKET ACCORDING TO WHEAT FIRST SECURITIES INC THE DAPPER DROMEDARY'S YOUTH APPEAL IS BROADLY ACCEPTED EVEN RJR HAS OPENLY ACKNOWLEDGED THAT THE CAMPAIGN WAS DESIGNED TO ENLIVEN THE BRAND'S IMAGE AND THAT IT APPEALS TO YOUNGER SMOKERS BUT THOSE OF LEGAL AGE RJR NOTES THAT THE PERCENTAGE OF HIGH SCHOOL STUDENTS THAT HAVE TRIED CIGARETTES HAS DROPPED SINCE THE ADS FIRST APPEARED UNDERCUTTING THE CLAIM THAT THE ADS ARE LURING KIDS TO SMOKE BUT ONE OFTCITED STUDY PUBLISHED IN DECEMBER 1991 IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION FOUND THAT MORE THAN HALF THE CHILDREN AGED THREE TO SIX IN ONE SURVEY WERE ABLE TO MATCH THE JOE CAMEL LOGO WITH A PHOTO OF A CIGARETTE SIXYEAROLDS WERE ALMOST AS FAMILIAR WITH JOE CAMEL AS THEY WERE WITH A MICKEY MOUSE LOGO RJ REYNOLDS DISMISSED THE STUDY SAYING THE NUMBER OF RESPONDENTS WAS TOO SMALL RJ REYNOLDS AND THE FTC WOULDN'T COMMENT ON THE JOE CAMEL CASE THE COMPANY HOWEVER IS EXPECTED TO VOCIFEROUSLY OPPOSE ANY EFFORT TO BAN THE CAMEL ADS FTC WATCHERS SAY THE MOVE MAY SIGNAL A VIGOROUS NEW ACTIVIST MINDSET AT THE FTC IT IS ONE OF THE MOST CONTROVERSIAL ISSUES TO COME BEFORE THE FTC IN RECENT YEARS BECAUSE IT IS SUCH A STRONG STEP AND SUCH A STRONG STATEMENT SAYS LINDA A GOLDSTEIN A PARTNER WITH HALL DICKLER LAWLER KENT & FRIEDMAN A NEW YORK LAW FIRM IT WOULD BE THE FIRST TIME THE FTC HAS EVER TAKEN SUCH A DRACONIAN STEP WHILE ANY ACTION ON JOE CAMEL WOULD BE A VICTORY FOR ANTISMOKING FORCES THE LONG DELAY HIGHLIGHTS WHAT CRITICS SAY IS THE GOVERNMENT'S FAINTHEARTED APPROACH TO TOBACCO REGULATION LUNG CANCER AND OTHER SMOKINGRELATED DISEASES KILL 434000 PEOPLE A YEAR ACCORDING TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA YET CRITICS SAY THE GOVERNMENT SEEMS MORE INTERESTED IN CRACKING DOWN ON MARKETERS OF DIETARY SUPPLEMENTS IT'S TOO LITTLE TOO LATE SAYS SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH RESEARCH GROUP IN WASHINGTON WHICH FIRST COMPLAINED ABOUT THE ADS IN 1989 HOW MANY TEENAGERS HAVE BECOME ADDICTED TO CIGARETTES SINCE THEN THE FEDERAL GOVERNMENT HAS BEEN PRETTY MUCH A NONPLAYER WHEN IT COMES TO TOBACCO AND TOBACCO ADVERTISING SAYS SCOTT D BALLIN LEGISLATIVE COUNSEL FOR THE AMERICAN HEART ASSOCIATION ONE OF THE HEALTH GROUPS THAT REQUESTED THAT THE FTC TAKE ACTION ON JOE CAMEL IN 1991 HE CALLS THE DELAY IN THE JOE CAMEL CASE UNBELIEVABLE IT SHOWS HOW SLOWLY THE FTC ACTS WHEN CALLED ON TO DO SOMETHING THIS ONE IS SO EGREGIOUS AND SO OUTRAGEOUS THAT IT SHOULD HAVE BEEN AN EASY ONE BUT FORMER FTC OFFICIALS AND LAWYERS SAY THE FTC MAY HAVE A TOUGH TIME PROVING ITS CASE THEY'VE GOT A MAJOR HURDLE TO DEAL WITH IN THE FIRST AMENDMENT SAYS STUART FRIEDEL A PARTNER AT DAVIS & GILBERT AND A FORMER FTC TRIAL ATTORNEY TO SEEK TO BAN A FORM OF ADVERTISING BECAUSE IT'S UNFAIR IS EXTRAORDINARILY UNUSUAL AGGRESSIVE AND IN MY MIND NOT SUPPORTABLE BY THE WEIGHT OF LAW OLD JOE AS THE COMPANY AFFECTIONATELY CALLS THE CHARACTER REMAINS THE FOCAL POINT OF CAMEL'S MARKETING EFFORTS HE WAS CREATED IN 1974 BY A BRITISH ARTIST FOR A CAMEL CAMPAIGN IN FRANCE AND IS USED EXTENSIVELY IN THE US BY THE BRAND'S CURRENT AD AGENCY MEZZINA/BROWN INC SINCE THE MASCOT WAS INTRODUCED HERE IN LATE 1987 CAMEL'S SHARE OF THE UNDER18 MARKET HAS SOARED TO 33 FROM 05 ACCORDING TO DATA SUPPLIED BY A COALITION OF HEALTH GROUPS AMONG SMOKERS AGED 18 TO 24 THE SHARE HAS RISEN TO 79 FROM 44 THE COALITION CONTENDS TO PROVE ITS CASE THE FTC WOULD HAVE TO INVOKE AN UNFAIRNESS DOCTRINE THAT COULD BE DIFFICULT TO PROVE IT WOULD HAVE TO FIND THAT THE ADS HAVE CAUSED SUBSTANTIAL CONSUMER INJURY THAT THE ADS WERE SO CONVINCING THAT THE INJURY WAS UNAVOIDABLE AND THAT THE INJURY ISN'T OUTWEIGHED BY THE SOCIETAL AND ECONOMIC BENEFITS OF LEAVING THE CAMPAIGN ALONE TOBACCO INDUSTRY LAWYERS SAY THAT THE FTC'S DEFINITION OF UNFAIRNESS IS SO BROAD THAT THERE IS VIRTUALLY NO CHANCE IT WILL BE ABLE TO BAN THE CAMEL ADS IN THE PAST THE FTC HAS USED THE UNFAIRNESS RULE TO FORCE A BIKE COMPANY TO STOP RUNNING ADS THAT SHOWED CHILDREN DOING DANGEROUS MANEUVERS ON THE GROUND THAT IT WOULD BE HARMFUL TO KIDS IF THEY IMITATED THE ACTIONS THE PANEL ALSO HAS USED THE STANDARD TO MOVE AGAINST 900 NUMBERS THAT AIM AT CHILDREN HOWEVER IN 1978 IT UNSUCCESSFULLY TRIED TO BAN ALL ADVERTISING AIMED AT CHILDREN FTC WATCHERS SAY THAT THE AGENCY IS HISTORICALLY MORE AGGRESSIVE UNDER DEMOCRATIC ADMINISTRATIONS OVER THE YEARS ITS ENFORCEMENT VIGOR HAS SWUNG SO WIDELY THAT CHARACTERIZATIONS OF IT HAVE RANGED FROM THE LITTLE OLD LADY ON PENNSYLVANIA AVENUE TO THE NATIONAL NANNY LAWYERS THAT REPRESENT ADVERTISERS ARE CONCERNED THAT THE FTC IS ONCE AGAIN INTENT ON INTERFERING MORE IN ADVERTISING MATTERS MS GOLDSTEIN WHO SPECIALIZES IN ADVERTISING LAW AT HALL DICKLER SAYS CHALLENGING THE CAMEL ADS ON THE GROUND THAT THEY ARE UNFAIR IS A POTENTIALLY DANGEROUS PRECEDENT SAATCHI & SAATCHI CO THE LONDON AGENCY HOLDING COMPANY POSTED A 5 DECLINE IN OPERATING PROFIT FOR THE FIRST HALF TO 188 MILLION 28 MILLION FROM 198 MILLION THE COMPANY WHICH OWNS AGENCIES SAATCHI & SAATCHI ADVERTISING BACKER SPIELVOGEL BATES AND CME KHBB REPORTED FIRSTHALF NET INCOME OF 33 MILLION OR 19 PENCE A SHARE A YEAR EARLIER SAATCHI REPORTED A LOSS OF 83 MILLION AND PERSHARE EARNINGS OF ONE PENCE RESTATED TO REFLECT THE SALE OF CERTAIN OPERATIONS THE 1993 RESULTS WERE IN LINE WITH EXPECTATIONS REVENUE FOR THE HALF WAS 4041 MILLION A 12 INCREASE FROM A YEAR EARLIER US REVENUE WAS UP 20 THE COMPANY SAID ATTRIBUTING MOST OF THE INCREASE TO FAVORABLE CURRENCY FLUCTUATIONS STEVEN HOFFENBERG WHO TRIED AND FAILED TO BUY THE NEW YORK POST EARLIER THIS YEAR HAS HIRED AN AD AGENCY TO HELP WITH AN EVEN MORE AMBITIOUS VENTURE HER NEW YORK A TABLOID NEWSPAPER FOR WORKING WOMEN KATZ DOCHTERMANN & EPSTEIN WON THE ESTIMATED 5 MILLION ACCOUNT INCLUDING PRINT AND TELEVISION ADVERTISING MR HOFFENBERG WHO IS ACTING AS PUBLISHER SAID HE PLANS TO HAVE HER NEW YORK ON NEWSSTANDS FIVE DAYS A WEEK STARTING IN OCTOBER HE IS AIMING TO SELL 100000 COPIES A DAY AT 50 CENTS EACH HER NEW YORK INC IS A CLOSELY HELD VENTURE FINANCED WITH A 3 MILLION LINE OF CREDIT SUPPLIED BY ACCOUNTS RECEIVABLE FRIENDS OF MINE MR HOFFENBERG SAID ADDING THAT HE DOESN'T HOLD A PERSONAL STAKE IN IT SEVERAL SUBSIDIARIES OF MR HOFFENBERG'S TOWER FINANCIAL CORP HAVE BEEN UNDER BANKRUPTCYCOURT PROTECTION SINCE MARCH THEY ARE FOR SALE HE SAID IN ADDITION MR HOFFENBERG FACES A CIVIL FRAUD SUIT FROM THE SECURITIES AND EXCHANGE COMMISSION WHICH HE SAYS HE EXPECTS TO SETTLE SOON WOMEN DON'T LIKE READING THE DAILY NEWS OR THE NEW YORK POST MR HOFFENBERG SAID HER NEW YORK WILL HAVE ABOUT 10 FEATURES A DAY WITH SPECIAL APPEAL TO WOMEN HE SAID INCLUDING COVERAGE ON WOMEN IN POLITICS AND BUSINESS LIFESTYLE AND FASHION STORIES SHOPPING AND NIGHTLIFE GUIDES AND A HILLARY WATCH THE NEWSPAPER WILL BE PRINTED UNDER CONTRACT BY A NORTHERN NEW JERSEY NEWSPAPER THE BERGEN RECORD HE SAID FOOTE CONE FOOTE CONE & BELDING COMMUNICATIONS CHICAGO POSTED RECORD NET INCOME FOR THE SECOND QUARTER THE COMPANY SAID NET INCOME ROSE 17 TO 89 MILLION OR 80 CENTS A SHARE FROM 76 MILLION OR 71 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 83 THE AGENCY SAID TO 937 MILLION FROM 866 MILLION SEE RELATED LETTER LETTERS TO THE EDITOR JOE CAMEL PROVOKES NANNY' REFLEX AT FTC WSJ SEPT 7 1993 9308110090 YY93 MM09 9309070008 930825 REVIEW & OUTLOOK EDITORIAL POLITICS IN ARKANSAS LAST YEAR VOTERS IN 14 STATES APPROVED TERM LIMIT MEASURES BY AN OVERALL MARGIN OF 2 TO 1 DON'T EXPECT THE MOSSBACKS TO GO QUIETLY IN SEVERAL STATES THE POLITICAL ESTABLISHMENT HAS BRAZENLY DECIDED TO SUE THE PEOPLE TO PROTECT CAREER OFFICEHOLDERS HOUSE SPEAKER TOM FOLEY REFUSES TO EVEN ALLOW A COMMITTEE HEARING ON A CONSTITUTIONAL AMENDMENT TO IMPOSE TERM LIMITS NATIONWIDE BUT HE CAN'T WAIT TO HAVE HIS DAY IN COURT ON A LAWSUIT HE HAS JOINED TO OVERTURN WASHINGTON STATE'S TERM LIMIT LAW THE FACT IS THAT FOR ALL THE RHETORIC ABOUT WHETHER LIMITS ARE CONSTITUTIONAL THE OBJECTIONS FROM THE INCUMBENTS ARE ESSENTIALLY POLITICAL THEY DON'T WANT TO GIVE UP WHAT FOR MOST OF THEM HAS SIMPLY BECOME A CAREER WHAT THEY DO FOR A LIVING SO NOW THEY'RE GOING TO ANY LENGTHS TO RUN AROUND THE PEOPLE WHO SEE TERM LIMITS AS A MEANS TO RESTORE THE IDEA OF PUBLIC SERVICE TO POLITICAL OFFICE EXHIBIT A AT THE MOMENT COMES FROM ARKANSAS LAST MONTH A STATE CIRCUIT COURT JUDGE IN LITTLE ROCK TOSSED OUT A TERM LIMIT INITIATIVE THAT HAD BEEN APPROVED BY 60 OF THE VOTERS LAST YEAR JUDGE CHRIS PIAZZA'S DECISION IS REMARKABLE ON SEVERAL COUNTS FIRST ACCORDING TO THE ARKANSAS DEMOCRATGAZETTE THE ONLY STATEWIDE NEWSPAPER THE JUDGE'S EIGHTPAGE OPINION WAS WRITTEN OUT AND READY TO BE DISTRIBUTED BEFORE HE HAD HEARD THE ARGUMENTS SECOND JUDGE PIAZZA TOSSED OUT THE LAW'S CONGRESSIONAL TERM LIMITS BY CITING A CASE IN WHICH THE SUPREME COURT RULED THAT CONGRESS COULDN'T ADD ITS OWN QUALIFICATIONS FOR SERVICE IN THAT BODY HOWEVER THE SUPREME COURT WAS COMPLETELY SILENT ON WHAT POWER THE STATES RETAINED FINALLY THE JUDGE INVALIDATED THE TERM LIMITS FOR STATE LEGISLATORS ON THE INCREDIBLE PREMISE THAT THE PEOPLE DIDN'T KNOW THEY WERE AMENDING THE STATE CONSTITUTION HE RULED THAT SINCE THE AMENDMENT DID NOT BEGIN WITH A THREEWORD CLAUSE BE IT ENACTED THE ENTIRE LAW IS INVALID THIS LAST RULING HAS ASTOUNDED STATE CONSTITUTIONAL EXPERTS DICK HATFIELD AN ATTORNEY FOR THE STATE SAYS THE JUDGE'S LOGIC WOULD OVERTURN SEVERAL PARTS OF THE STATE'S CONSTITUTION INCLUDING AMENDMENTS LEGALIZING HORSE RACING AND VOTING MACHINES JUDGE PIAZZA'S DECISION HAS AT LEAST FOCUSED ATTENTION ON ARKANSAS'S PECULIAR POLITICAL MORES IT'S THE ONLY STATE IN WHICH ALL JUDGES ARE ELECTED ON A PARTISAN BASIS AND IN WHICH THE POLITICAL PARTIES RUN THE PRIMARIES THAT USUALLY SELECT JUDGES TO RUN FOR JUDGE CANDIDATES MUST PAY A FILING FEE OF BETWEEN 5000 AND 8000 NOT TO THE STATE BUT TO THE POLITICAL PARTY THEY BELONG TO AND GET THIS DEMOCRATS WHO CONTROL 74 OUT OF 75 COUNTY COURTHOUSES ALSO REQUIRE A LOYALTY OATH OF ALL JUDICIAL NOMINEES IN WHICH THEY PLEDGE TO SUPPORT THE PARTY AND ALL OF ITS CANDIDATES SINCE THE DEMOCRATIC PARTY IS THE MOST VOCIFEROUS OPPONENT OF TERM LIMITS IN ARKANSAS JUDGE PIAZZA MIGHT WELL HAVE COMMITTED POLITICAL SUICIDE IF HE'D UPHELD TERM LIMITS HE WILL HOLD A FINAL HEARING ON HIS DECISION TOMORROW IT WILL THEN BE APPEALED TO THE ARKANSAS SUPREME COURT MADE UP ENTIRELY OF DEMOCRATS WHO'VE ALSO SIGNED A PARTY LOYALTY OATH WHILE HE OPPOSES TERM LIMITS DEMOCRATIC GOVERNOR JIM GUY TUCKER IS WORRIED NONETHELESS THAT THE EXPRESSED WILL OF THE PEOPLE MAY BE THWARTED ON A DUBIOUS TECHNICALITY THAT WOULD ONLY DEEPEN PUBLIC CYNICISM ABOUT GOVERNMENT HE TOLD US THAT IF THE LAW IS STRUCK DOWN VOTERS WILL LIKELY PASS IT AGAIN BY A BIGGER MARGIN NEXT TIME THE DRAFTERS MAY BE SORELY TEMPTED TO ADD ADDITIONAL TERM LIMITS FOR JUDGES SEE RELATED LETTER LETTERS TO THE EDITOR WE KEEP PROPOSING THEY KEEP DISPOSING WSJ SEPT 7 1993 9308250041 YY93 MM09 9309030202 930903 HOLIDAY NOTICE THE WALL STREET JOURNAL WILL NOT BE PUBLISHED MONDAY SEPT 6 IN OBSERVANCE OF LABOR DAY 9309030201 930903 TOTAL PLANS TO KEEP CAPITAL EXPENDITURES AT AGGRESSIVE PACE HOUSTON TOTAL SA FRANCE'S SECONDLARGEST OIL COMPANY EXPECTS TO MAKE CAPITAL EXPENDITURES OF ABOUT 15 BILLION FRANCS ABOUT 26 BILLION IN 1994 THE SAME AGGRESSIVE LEVEL AS THIS YEAR SERGE TCHURUK CHIEF EXECUTIVE OFFICER SAID MR TCHURUK ALSO SAID TOTAL HAS SOLD CLOSE TO 342 MILLION OF ASSETS THIS YEAR ABOUT THREEQUARTERS OF THE WAY TOWARD ITS 1993 GOAL BUT MR TCHURUK QUICKLY ADDED I'M NOT IN A HURRY TO SELL ASSETS AT ANY PRICE I WILL WAIT AND SEE ASSET SALES COMPLETED THIS YEAR INCLUDE CANADIAN PROPERTIES URANIUM MINING AND REAL ESTATE HOLDINGS PARISBASED TOTAL WILL SPEND MUCH OF ITS BUDGET IN THREE CORE AREAS OF EXPLORATION AND PRODUCTION THE MIDDLE EAST THE FAR EAST AND SOUTH AMERICA THE COMPANY HAS SUCCESSFULLY LAUNCHED A BOLD HUNT FOR GIANT OILFIELDS AND HAS FOUND SOME INCLUDING AN INTEREST IN THE GIANT CUSIANA FIELD IN COLOMBIA WE HAVE TAKEN A VERY CHALLENGING OBJECTIVE WHICH IS TO DOUBLE OUR HYDROCARBON PRODUCTION THIS DECADE MR TCHURUK SAID IN AN INTERVIEW OUTSIDE OF THE MIDDLE EAST HE SAID TOTAL HOPES TO BOOST PRODUCTION TO 600000 BARRELS A DAY INCLUDING THE MIDDLE EAST TOTAL OIL PRODUCTION COULD CLIMB TO ONE MILLION BARRELS DAILY BY THE END OF THE DECADE HE SAID TOTAL'S US AFFILIATE TOTAL PETROLEUM NORTH AMERICA LTD EARLIER THIS WEEK COMPLETED A 135 MILLION CONSTRUCTION PROJECT AT ITS ARDMORE OKLA REFINERY DESIGNED TO PRODUCE LOWSULFUR DIESEL FUEL TO MEET CLEAN AIR ACT REQUIREMENTS THAT TAKE EFFECT OCT 1 MR TCHURUK DENIED RUMORS THAT TOTAL WAS LOOKING TO SELL ITS US AFFILIATE IT'S NOT A POSSIBILITY DOWN THE ROAD HE SAID WE ARE MANAGING OUR OPERATIONS AND STREAMLINING THEM 9309030200 930903 PENTAGON'S INDUSTRIAL POLICY ISN'T MEANT TO SAVE JOBS OR AID FIRMS OFFICIAL SAYS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON'S EMERGING INDUSTRIAL POLICY SHOULDN'T BE MISTAKEN FOR A JOBS PROGRAM OR A BAILOUT FOR WEAK COMPANIES WARNED THE PENTAGON'S NO 2 OFFICIAL I EXPLICITLY REJECT THE IDEA OF SUPPORTING A DEFENSE COMPANY JUST TO KEEP IT IN BUSINESS DEPUTY DEFENSE SECRETARY WILLIAM PERRY TOLD A GROUP OF REPORTERS WE AREN'T DOING IT PROMULGATING AN INDUSTRIAL POLICY TO PROTECT JOBS OR TO PROTECT SHAREHOLDERS THIS ISN'T A BAILOUT WE FULLY EXPECT SEVERAL DEFENSE COMPANIES TO GO OUT OF BUSINESS AND WE WILL STAND BY AND WATCH THAT HAPPEN RATHER HE SAID DECISIONS BEING MADE AT THE PENTAGON THESE DAYS ARE DRIVEN BY THE NEED TO PRESERVE CERTAIN UNIQUE CAPABILITIES SUCH AS THE KNOWHOW REQUIRED TO BUILD NUCLEAR SUBMARINES AND ARMORED VEHICLES THE PENTAGON THIS WEEK CONFIRMED IT WANTS GENERAL DYNAMICS CORP'S ELECTRIC BOAT UNIT TO BUILD ANOTHER SEAWOLF ATTACK SUBMARINE NOT BECAUSE THE SUB IS NEEDED BUT TO KEEP ALIVE THE CAPABILITY TO BUILD SUBMARINES THE PENTAGON'S NEW ACTIVIST DEFENSE INDUSTRIAL POLICY WHICH SHARPLY CONTRASTS WITH THE LAISSEZFAIRE STANCE OF THE BUSH ADMINISTRATION ENJOYS THE FULL BACKING OF THE WHITE HOUSE HE NOTED WE GOT SUBSTANTIAL ENCOURAGEMENT EXPLICIT ENCOURAGMENT FROM THE PRESIDENT FOR PROCEEDING IN THIS DIRECTION HE SAID DESPITE THAT BACKING MR PERRY AND HIS BOSS DEFENSE SECRETARY LES ASPIN APPEAR TO HAVE HAD AN UNEXPECTEDLY DIFFICULT TIME IN FORMULATING A COMPREHENSIVE DEFENSE INDUSTRIAL POLICY THIS WEEK WHEN MR ASPIN UNVEILED HIS PLAN ON HOW TO REMAKE THE US MILITARY ESTABLISHMENT TO FIT THE POSTCOLD WAR WORLD HE WAS ABLE TO DESCRIBE IN DETAIL WHAT HE THOUGHT THE MILITARY FORCE STRUCTURE SHOULD BE BUT BEGGED OFF WHEN ASKED TO DISCUSS THE INDUSTRIAL POLICY HE WAS DEVELOPING TO SUPPORT THAT FORCE STRUCTURE AND WHEN MR PERRY WAS ASKED YESTERDAY TO OUTLINE THE POLICY HE WAS ABLE ONLY TO DESCRIBE A FEW PIECES OF IT THE SUBMARINE DECISION SOME CHANGES IN ACQUISITION POLICY AND SOME INCOMPLETE WORK ON A POLICY OF FARMING OUT TO PRIVATE COMPANIES SOME OF THE WORK OF MILITARY DEPOTS NONETHELESS HE SEEMED EAGER TO KNOCK DOWN THE IDEA THAT THE PENTAGON PLAN WAS DESIGNED IN PART TO SAVE DEFENSE JOBS NOTHING IN THIS PLAN PRESERVES JOBS HE SAID THE REDUCTION IN THE SIZE OF THE MILITARY WE'RE TALKING ABOUT COSTS MANY MANY JOBS MR PERRY ALSO THREW COLD WATER ON THE IDEA THAT DEFENSE COMPANIES CAN AVOID SHRINKAGE BY BOOSTING THEIR EXPORTS FOR ONE THING HE SAID THERE ARE POLICY PROBLEMS WITH SOME EXPORTS ESPECIALLY IN SELLING TO SOME OF THE COUNTRIES THAT ARE MOST INTERESTED IN BUYING OUR ARMS SECOND HE SAID THE SIZE OF THE POTENTIAL EXPORT MARKET ISN'T SUFFICIENT TO OFFSET THE CONTINUING DECLINE IN THE DOMESTIC DEFENSE MARKET EXPORT SALES HE CONCLUDED MAY ONLY DELAY INEVITABLE SHRINKAGE TO THE EXTENT THE DEFENSE INDUSTRY COUNTS ON THIS THEY ARE POSTPONING THE CONSOLIDATION AND DOWNSIZING THEIR INDUSTRY SHOULD BE GOING THROUGH HE WARNED THE PENTAGON IS PLANNING SEVERAL OTHER STEPS TO ENCOURAGE CONSOLIDATION OF THE INDUSTRY SUCH AS FORMING A TASK FORCE TO BREAK ANTITRUST LOGJAMS THAT DISCOURAGE DEFENSE INDUSTRY MERGERS MR PERRY DID OFFER TWO BITS OF GOOD NEWS FOR THE DEFENSE INDUSTRY HE SAID HE AGREES WITH THE DEFENSE INDUSTRY'S ARGUMENT THAT MUCH OF THE UPGRADE AND MAINTENANCE WORK CURRENTLY PERFORMED BY MILITARY DEPOTS SHOULD BE TURNED OVER TO THE PRIVATE SECTOR THE PENTAGON CURRENTLY SPENDS ROUGHLY 20 BILLION A YEAR ON SUCH WORK IN THE FUTURE HE SAID EACH OF THE SERVICES WILL BE ASKED TO DEFINE THE AMOUNT OF WORK NECESSARY TO MAINTAIN ITS CORE CAPABILITIES AND THE REST OF THE WORK WILL BE FARMED OUT TO INDUSTRY THE NAVY'S AVIATION WING BEGAN IMPLEMENTING THAT POLICY EARLIER THIS YEAR BUT THE AIR FORCE HAS BEEN DEEPLY DIVIDED WITH SOME TOP OFFICERS ARGUING THAT THE MILITARY SHOULD BE ALLOWED TO COMPETE FOR THE WORK MR PERRY ALSO NOTED THAT BEFORE THE NEW DEPOT POLICY CAN BE FULLY IMPLEMENTED LAWS RESTRICTING THE AMOUNT OF MAINTENANCE WORK THAT CAN BE DONE BY THE PRIVATE SECTOR WOULD HAVE TO BE CHANGED SEVERAL MEMBERS OF CONGRESS ALREADY HAVE SAID THEY WILL RESIST MAKING THOSE CHANGES TOUCHING ON THE ISSUE OF THE SHAKY STATE OF THE US SHIPBUILDING INDUSTRY MR PERRY SAID THE PENTAGON IS CONCERNED BY THE NEAR DISAPPEARANCE OF THE COMMERCIAL SHIPBUILDING INDUSTRY THE ADMINISTRATION IS LOOKING AT THINGS IT MIGHT DO TO REVITALIZE THE COMMERCIAL SHIPBUILDING INDUSTRY HE SAID 9309030199 930903 GM PLANS SHARP RISE IN CAR TRUCK OUTPUT DURING FOURTH PERIOD DETROIT GENERAL MOTORS CORP PLANS TO BOOST FOURTHQUARTER VEHICLE PRODUCTION 164 ABOVE YEAREARLIER LEVELS IN A PUSH TO RESTORE PROFITABILITY TO ITS CORE NORTH AMERICAN OPERATIONS BY YEAR END THE AUTO MAKER SAID IT PLANS TO INCREASE US CAR PRODUCTION TO 699067 UP 14 FROM THE 613162 BUILT IN THE 1992 FOURTH QUARTER THE BIGGEST INCREASE WILL BE IN LIGHTTRUCK PRODUCTION GM PROJECTS THAT IT WILL BUILD 436608 TRUCKS IN THE LAST THREE MONTHS OF THE YEAR UP 205 FROM THE 362264 BUILT A YEAR AGO THROUGH MIDAUGUST SALES OF GM'S LIGHT TRUCKS WERE UP 135 THE NEW FOURTHQUARTER SCHEDULES SUGGEST GM OFFICIALS HOPE TO SHOW INVESTORS THAT THE COMPANY'S CORE DOMESTIC OPERATIONS CAN GET BACK INTO THE BLACK BUT GM MUST GAIN MORE SALES MOMENTUM TO SUPPORT ITS STEPPEDUP SCHEDULES YESTERDAY GM SAID THAT AS OF LAST MONDAY THE PONTIAC MICH ASSEMBLY PLANT THAT BUILDS CHEVY S10 BLAZERS AND GMC S10 JIMMYS SPORT UTILITY VEHICLES WILL BE IDLE UNTIL SEPT 27 BECAUSE OF SOFT DEMAND FOR THE TWODOOR MODELS BUILT THERE GM ALSO SAID THE ASSEMBLY PLANT IN MORAINE OHIO THAT BUILDS THE FOURDOOR VERSION OF THE SAME VEHICLE IS WORKING OVERTIME THIS WEEK AND NEXT THE COMPANY ALSO PLANS OVERTIME AT SIX OTHER TRUCK PLANTS AS WELL AS AT FOUR CAR PLANTS NEXT WEEK FORD MOTOR CO SAID THE WAYNE MICH ASSEMBLY PLANT THAT BUILDS THE FORD ESCORT WILL BE IDLE AGAIN NEXT WEEK BECAUSE OF SLOW SALES IN ADDITION FORD SAID BEGINNING MONDAY ITS DEARBORN MICH MUSTANG ASSEMBLY PLANT WILL BE IDLED THROUGH OCT 4 BECAUSE OF MODEL CHANGEOVER SEPARATELY FORD SAID IT ORDERED OVERTIME THIS WEEK AT THREE CAR AND SIX TRUCK FACILITIES CHRYSLER CORP SAID IT PLANS OVERTIME NEXT WEEK AT ITS JEEP ASSEMBLY PLANTS IN DETROIT AND TOLEDO OHIO AND A TRUCK ASSEMBLY PLANT IN WARREN MICH ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 190040 VEHICLES THIS WEEK UP 259 FROM THE 150927 CARS AND TRUCKS BUILT IN THE SAME PERIOD A YEAR AGO ALL OF THE AUTO MAKERS' ASSEMBLY PLANTS WILL BE CLOSED MONDAY IN OBSERVANCE OF LABOR DAY 9309030198 930903 INTERNATIONAL BOSNIA PROBLEM BOUNCES BACK TO CLINTON AS GENEVA TALKS FOUNDER ALLIES ADVISERS ARE SPLIT ON THE USE OF AIR POWER THIS ARTICLE WAS PREPARED BY ROGER THUROW IN VIENNA AND ROBERT S GREENBERGER AND THOMAS E RICKS IN WASHINGTON PRESIDENT CLINTON AGAIN FACES A DECISION ON BOSNIA THE BREAKDOWN OF PEACE TALKS IN GENEVA SEEMS TO MAKE ANOTHER ROUND OF CARNAGE IN THE BALKANS UNAVOIDABLE ALL THREE FACTIONS ARE PRIMED TO STEP UP A MILITARY OFFENSIVE THE MUSLIMS FOR SHEER SURVIVAL THE SERBS AND CROATS TO ANNEX FURTHER CHUNKS OF BOSNIA AND TO PRESSURE THE MUSLIMS TO AGREE TO A CARVINGUP OF THE REPUBLIC THE SPOTLIGHT NOW SHIFTS FROM THE NEGOTIATING TABLE TO THE OVAL OFFICE WHERE MR CLINTON MUST DECIDE WHETHER TO MAKE GOOD ON HIS LATEST THREATS TO USE MILITARY FORCE TO MITIGATE THE IMMENSE HUMAN SUFFERING BEING VISITED ON BOSNIA'S MUSLIMS SECRETARY OF DEFENSE LES ASPIN IS CONTEMPLATING A TRIP TO THE FORMER YUGOSLAVIA NEXT WEEK A MOVE THAT WOULD SIGNAL THAT THE US DOESN'T INTEND TO WASH ITS HANDS OF THE BALKAN CRISIS BUT A DECISION HASN'T BEEN MADE PARTLY BECAUSE OF SECURITY CONSIDERATIONS AND PARTLY BECAUSE THE ADMINISTRATION WANTS TO FURTHER ANALYZE THE SITUATION YESTERDAY MR CLINTON WARNED THAT THE POSSIBILITY OF NORTH ATLANTIC TREATY ORGANIZATION AIR STRIKES IN BOSNIA IS VERY MUCH ALIVE IF THE SITUATION DETERIORATES FURTHER BUT THE THREAT WHICH MR CLINTON HAS MADE BEFORE WAS ACCOMPANIED BY CALLS FOR A REVIVAL OF PEACE TALKS THE UNITED STATES WILL DO EVERYTHING IT CAN IN THE NEXT FEW DAYS TO GET THE PARTIES TO RESUME THE TALKS IN GOOD FAITH MR CLINTON SAID SECRETARY OF STATE WARREN CHRISTOPHER ISSUED A SHARP PROTEST TO LEADERS OF SERBIA AND CROATIA URGING THEM TO YIELD TO THE DEMANDS OF BOSNIAN MUSLIMS WHO WANT MORE TERRITORY THAN WAS OFFERED IN THE PEACE PROPOSAL FROM EUROPEAN COMMUNITY AND UNITED NATIONS OFFICIALS IF TALKS ARE NOT RESUMED AND THE FIGHTING PICKS UP MR CLINTON WILL HAVE TO DECIDE WHETHER AND HOW TO MAKE GOOD ON HIS THREATS LAST MONTH NATO DEMANDED THAT THE SERBS END THEIR SIEGE OF SARAJEVO OR RISK ATTACK NATO OFFICIALS ALSO APPROVED A LIST OF MILITARY TARGETS SHOULD THE UN APPROVE AIR STRIKES BUT AS IN THE PAST MR CLINTON FACES A LACK OF UNANIMITY AMONG ADVISERS AND ALLIES ON HOW OR WHETHER TO INTERVENE SENIOR ARMY OFFICIALS HAVE ARGUED THAT LIMITED AIR STRIKES WILL HAVE LITTLE EFFECT ON THE BALKAN CRISIS THEY AND OTHERS WORRY ABOUT WHAT STEPS THE US MIGHT TAKE NEXT MEANWHILE THE EUROPEAN ALLIES WHO HAVE PEACEKEEPING FORCES ON THE GROUND REMAIN RELUCTANT TO BEGIN BOMBING THE PROBLEM IS THAT WHEN YOU START TO USE AIR POWER SAYS A EUROPEAN DIPLOMAT IT BECOMES MORE DIFFICULT TO GET AID THROUGH ON THE GROUND ON THE GROUND IN BOSNIA UN MILITARY OFFICIALS FEAR AN ESCALATION IN MUSLIMCROAT FIGHTING IN THE CENTRAL REGIONS WHERE THE MUSLIMS ARE TRYING TO EXPAND THEIR TERRITORIAL HOLD AND AROUND THE SOUTHERN CITY OF MOSTAR WHICH THE CROATS WANT TO WREST FROM THE MUSLIMS THE SERBS MEANWHILE LIKELY WILL CLOSE THE NOOSE ON THE MUSLIM ENCLAVES OF SREBRENICA GORAZDE AND BIHAC WHICH ARE SURROUNDED BY SERBHELD TERRITORY IN ADDITION THE SERBS HAVE THREATENED TO REINFORCE THE SIEGE OF SARAJEVO IF PEACE TALKS FAILED SUCH AN OUTBREAK OF FIGHTING ACROSS THE COUNTRY WITH THE ACCOMPANYING ETHNIC CLEANSING WOULD COMPLICATE ANY MILITARY STRIKE BY NATO AND THE UN AIR STRIKES HAVE BEEN THREATENED TO BREAK THE SERB SIEGE OF SARAJEVO AND TO PUNISH ANY FACTION THAT INTERFERES WITH THE DELIVERY OF HUMANITARIAN AID BUT IS THE WEST PREPARED TO ACT IF THE SERBS HOLD OFF ON SARAJEVO AND MOVE TO TAKE OTHER CITIES WIDESPREAD FIGHTING ON SEVERAL FRONTS WOULD MAKE IT MORE DIFFICULT TO ISOLATE VIOLATORS FOR EXAMPLE TAKE THE RECENT CROATMUSLIM BATTLES AROUND MOSTAR THERE THE SIEGE IS BEING ENFORCED BY THE CROATS NOT THE SERBS BUT IT WAS THE MUSLIMS WHO DETAINED HUMANITARIAN AID WORKERS HOLDING THEM AND DOZENS OF SPANISH UN SOLDIERS FOR SEVERAL DAYS AS HUMAN SHIELDS AGAINST FURTHER CROAT ATTACKS UN OFFICERS ALSO WORRY THAT CROATIA MAY TAKE ADVANTAGE OF THE FIGHTING IN BOSNIA AND LAUNCH AN OFFENSIVE TO RECAPTURE THE 30 OF CROATIA OCCUPIED BY THE SERBS DURING THE SERBCROAT WAR IN 1991 IF THERE IS TO BE A FIGHT TO THE FINISH CALLS WILL INCREASE FOR THE UN TO LIFT ITS ARMS EMBARGO AGAINST THE MUSLIMS TO EVEN UP THE FIGHTING IN MANY PARTS OF BOSNIA MUSLIM SOLDIERS HAVE ONLY RIFLES AND LIGHT ARTILLERY WHILE THE SERBS AND CROATS ARE EQUIPPED WITH TANKS AND HEAVY ARMS IN REJECTING THE PEACE PLAN THE MUSLIM LEADERSHIP IS CLINGING TO THE HOPE THAT ANY ESCALATION IN THE FIGHTING WILL PROMPT THE WEST TO INTERVENE MILITARILY IN SOME WAY ON THEIR SIDE DESPITE THEIR WEARINESS OF WAR THE MUSLIM LEADERS REJECTED THE UNEC PEACE PLAN AS BEING TANTAMOUNT TO A SLOW DEATH THEY FEARED THE PROPOSED CARVEUP OF BOSNIA INTO ETHNIC STATES WOULD LEAD TO A FRAGMENTATION OF BOSNIA WITH THE SERB AND CROAT STATES BREAKING OFF TO JOIN SERBIA AND CROATIA RESPECTIVELY THAT WOULD HAVE LEFT A TINY ECONOMICALLY UNVIABLE MUSLIM STATE SCATTERED IN NONCONTIGUOUS PIECES DESPITE SERB AND CROAT LAMENTATIONS ABOUT THE COLLAPSE OF THE PEACE PLAN A MILITARY RATHER THAN NEGOTIATED SOLUTION PLAYS INTO THEIR HANDS THE MUSLIMS HAVE LONG SUSPECTED THAT SERBIAN PRESIDENT SLOBODAN MILOSEVIC AND CROATIAN PRESIDENT FRANJO TUDJMAN HAVE BEEN PLOTTING A TWOWAY DIVISION OF BOSNIA IF THE WAR GOES ON UNIMPEDED BY WESTERN INTERVENTION SUCH A DIVISION WILL LIKELY TAKE PLACE THE EC CAME UP WITH NO NEW SUGGESTIONS IN THE WAKE OF THE FAILED PEACE PLAN OTHER THAN TO KEEP NEGOTIATIONS GOING BRITISH FOREIGN SECRETARY DOUGLAS HURD CALLED FOR A PERIOD OF THOUGHT THOUGH NOT A LONG PERIOD IN WHICH ALL THREE SIDES SHOULD CONSIDER WHETHER THEIR DISPUTE OVER THE DIVISION OF BOSNIA WAS MORE IMPORTANT THAN PEACE 9309030197 930903 WHO'S NEWS UNION CORP UNION CORP FAIRFIELD NJ CAPITAL CREDIT CORP A UNIT OF THIS DEBT COLLECTION SERVICES CONCERN NAMED JAMES R PAXTON 46 YEARS OLD TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT MR PAXTON HAD BEEN PRESIDENT OF CREDIT CLAIMS & COLLECTIONS IN ATLANTA 9309030196 930903 MEN'S WEARHOUSE SALES CLIMB FREMONT CALIF MEN'S WEARHOUSE A DISCOUNT MEN'S CLOTHING CHAIN SAID AUGUST SALES JUMPED 50 TO 156 MILLION FROM 104 MILLION A YEAR AGO COMPARABLESTORE SALES ROSE 25 AS OF LAST SATURDAY THE COMPANY OPERATED 161 STORES IN 19 STATES 9309030195 930903 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO MARSHALL L BURMAN A 64YEAROLD CHICAGO ATTORNEY WAS ELECTED TO THE BOARD OF THIS CREDIT CARD SERVICE COMPANY INCREASING THE BOARD'S SIZE TO SIX 9309030194 930903 HECHINGER POSTS SALES RISE LANDOVER MD HECHINGER CO SAID AUGUST SALES ROSE 9 TO 1494 MILLION FROM 1375 MILLION A YEAR EARLIER COMPARABLESTORE SALES ROSE 3 FOR THE HOME IMPROVEMENT RETAILER THE COMPANY OPERATES 120 HOME CENTERS IN 18 STATES AND THE DISTRICT OF COLUMBIA 9309030193 930903 WHO'S NEWS BUTTREY FOOD & DRUG STORES INC BUTTREY FOOD & DRUG STORES INC GREAT FALLS MONT JOSEPH H FERNANDEZ 40 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING EDWARD C AGNEW WHO REMAINS CHAIRMAN 9309030192 930903 WHO'S NEWS BIOVASCULAR INC BIOVASCULAR INC ST PAUL MINN JAMES F LYONS 63YEAROLD CHAIRMAN WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING JOHN H DARNALL JR WHO RESIGNED FROM THE MEDICAL PRODUCTS CONCERN IN JANUARY 9309030191 930903 WHO'S NEWS DATA SWITCH CORP DATA SWITCH CORP SHELTON CONN ROBERT CONNOLLY 48 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENT OF OPERATIONS AT THIS MAKER OF COMPUTER NETWORKING SYSTEMS MR CONNOLLY WHO HAD BEEN VICE PRESIDENT OF CUSTOMER SERVICE SUCCEEDS GERALD SCHNEIDER 57 WHO LEFT THE COMPANY 9309030190 930903 CANADIAN INDUSTRIAL OPERATIONS OTTAWA CANADIAN INDUSTRY OPERATED AT 788 OF CAPACITY FOR THE APRILJUNE PERIOD A SLIGHT INCREASE FROM 787 FOR THE PREVIOUS THREE MONTHS ACCORDING TO STATISTICS CANADA A GOVERNMENT AGENCY IT WAS THE THIRD CONSECUTIVE QUARTER TO SHOW AN INCREASE IN INDUSTRY'S CAPACITY UTILIZATION RATE 9309030189 930903 FINANCING BUSINESS MEDICUS SYSTEMS CORP MEDICUS SYSTEMS CORP EVANSTON ILL SAID IT FILED A REGISTRATION STATEMENT FOR AN OFFERING OF 15 MILLION SHARES OF COMMON STOCK TO BE SOLD BY THE COMPANY AND CERTAIN SHAREHOLDERS 9309030188 930903 VALUE CITY'S SALES ARE DOWN COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY DECREASED 11 TO 664 MILLION FROM 672 MILLION FOR THE SAME YEARAGO PERIOD SAMESTORE SALES DROPPED 34 THE COMPANY SAID 9309030187 930903 LEISURE & ARTS ELUSIVE CONDUCTORS ON VIDEO BY MARK SWED SERGIU CELIBIDACHE AND CARLOS KLEIBER MAY BE THE LAST TWO CONDUCTORS WITH REAL MYSTIQUE BOTH MEN WHO HAPPEN TO LIVE IN MUNICH ARE ELUSIVE NEITHER APPEARS VERY OFTEN ON THE INTERNATIONAL STAGE OR ON RECORDINGS MR KLEIBER DOESN'T HAVE MR CELIBIDACHE'S OUTRIGHT ABHORRENCE OF RECORDING AND IS BETTERKNOWN BUT THESE DAYS HE IS AN EVEN RARER VISITOR TO THE RECORDING STUDIO THAN HE IS TO THE CONCERT HALL OR OPERA HOUSE IT HAS BEEN SAID THAT HE MAKES DATES TO PERFORM ONLY WHEN HIS REFRIGERATOR IS EMPTY MR CELIBIDACHE IS NOT QUITE THE RECLUSE MR KLEIBER IS HE HAS HIS OWN ORCHESTRA THE MUNICH PHILHARMONIC BUT HE IS LESS SEEN INTERNATIONALLY THAN MR KLEIBER THANKS IN PART TO HIS EXTRAORDINARY DEMANDS FOR DOZENS OF REHEARSALS WHENEVER HE CONDUCTS MR KLEIBER CAN BE PRETTY UNCOMPROMISING IN THAT DEPARTMENT TOO AND IS KNOWN TO WALK OUT WHENEVER CONDITIONS ARE NOT JUST RIGHT BOTH MEN IN FACT ARE CONDUCTORS WITH A NEARMYSTICAL REGARD FOR MUSIC AND NEITHER IS THE KIND OF BATONWAVING PEACOCK YOU WOULD EXPECT TO FIND MAKING CONCERT VIDEOS THAT MOST PROSAIC OF ALL MUSIC MEDIA YET THAT IS PRECISELY WHERE YOU WILL FIND THEM ON SOME NEWLY RELEASED LASER DISKS WHILE HE WILL CONDONE NO RECORDINGS OF HIS PERFORMANCES FOR PUBLIC DISTRIBUTION MR CELIBIDACHE HAS NOT ONLY BEEN HAPPY TO ALLOW VIDEO CAMERAS INTO LIVE PERFORMANCES OF THREE LATE BRUCKNER SYMPHONIES BUT HAS ALSO BEEN WILLING TO MAKE A SPECIAL VIDEO OF A REHEARSAL AND STUDIO PERFORMANCE OF PROKOFIEV'S CLASSICAL SYMPHONY MR KLEIBER MEANWHILE CAN BE SEEN IN A LIVE 1991 VIENNA PHILHARMONIC CONCERT CONDUCTING MOZART AND BRAHMS SYMPHONIES ALL HAPPEN TO BE EXTRAORDINARY PERFORMANCES AND DESPITE THE UNAVOIDABLE FLUTE FINGERS AND OTHER DISTRACTING CLOSEUP SHOTS OF PLAYERS PLAYING THEY ARE RIVETING DOCUMENTS AS WELL THE BRUCKNER PERFORMANCES RELEASED BY SONY CLASSICAL INCLUDE MR CELIBIDACHE LEADING HIS MUNICH PHILHARMONIC IN THE SIXTH SYMPHONY TAPED IN CONCERT IN THE ORCHESTRA'S OWN HALL IN 1991 AND THE SEVENTH AND EIGHTH SYMPHONIES TAPED WHILE ON TOUR AT SUNTORY HALL IN TOKYO A YEAR EARLIER BOTH ARE MODERN AUDITORIUMS VISUALLY BLAND AND WITH SLIGHTLY HARSH ACOUSTICS AND THE FILMING LACKS IMAGINATIVE CAMERAWORK THIS MAY SOUND BORING BUT IT NEVER IS AS LONG AS THE CAMERA STAYS ON THE NOW 81YEAROLD ROMANIANBORN CONDUCTOR MR CELIBIDACHE'S BRUCKNER IS EXALTED IN A WAY NO OTHER CONDUCTOR TODAY CAN POSSIBLY MATCH A STUDENT OF ZEN MR CELIBIDACHE SITS BUDDHALIKE IN FRONT OF THE ORCHESTRA ALMOST IMPASSIVELY BUT NOT QUITE AND LETS THE SYMPHONIES UNFOLD WITH A VERY SLOW RAPT SPIRITUAL MAGNIFICENCE OCCASIONALLY MR CELIBIDACHE WILL GENTLY TAP HIS HEART ASKING FOR MORE EXPRESSION OR IN THE REALLY BIG MOMENTS WAVE HIS ARMS WITH EXCITEMENT BUT MOSTLY HE JUST SITS BEATING TIME WITH A LOOK OF EXTREME CONTENTMENT ON HIS FACE THAT MIRRORS SOME OF THE MOST MAGISTERIAL MUSIC EVER WRITTEN MR CELIBIDACHE HAS CLEARLY PERFECTED THE BUDDHIST ART OF WAITING AND ALTHOUGH THESE ARE SOME OF THE SLOWEST PERFORMANCES ON RECORD OF THE LONGEST AND MOST STATIC SYMPHONIES OF THE LATE 19TH CENTURY THEY ARE PERFECTLY PACED PHRASES ARE WONDERFULLY SHAPED AND EVERY DETAIL SEEMS TO KNOW ITS PLACE ONE DOES NOT QUITE APPRECIATE WHAT A HAM MR CELIBIDACHE IS HOWEVER UNTIL ONE VIEWS THE 45MINUTE REHEARSAL OF PROKOFIEV'S WITTY CLASSICAL SYMPHONY ON A MARVELOUS TELDEC VIDEO THAT ALSO INCLUDES A PERFORMANCE HERE MR CELIBIDACHE MAKES SCATOLOGICAL NOISES TO GET THE PLAYERS TO SOUND VULGAR HE INVENTS A LITTLE DRAMA OF THE BALLERINA IN THE GAVOTTE HE TURNS THE FINAL CADENCE OF THE SLOW MOVEMENT INTO A LITERAL KISS REHEARSING IN GERMAN ENGLISH SUBTITLES ARE SUPPLIED ON THE VIDEO MR CELIBIDACHE OFFERS SUCH GREAT EXCLAMATIONS AS MAX THE BELCH IS MISSING AND LET'S HAVE SOME BELLY IN FACT THE CONDUCTOR IS SO DRAMATIC IN REHEARSAL THAT THE ACTUAL PERFORMANCE EXTRAVAGANT AS ARE ITS CHARACTERIZATIONS OF INNER DETAIL IS A BIT OF A LETDOWN CERTAINLY NOTHING CAN QUITE MATCH THE THEATRICALITY OF MR CELIBIDACHE SCREAMING NO NO WITH WONDERFUL MOCK OUTRAGE THAT ONLY ENHANCES THE BIG CLIMAX OF THE FIRST MOVEMENT THE YOUNG AND ALERT PLAYERS LOOK AS IF THEY DON'T KNOW WHETHER TO BE SCARED OF OR AMUSED BY MR CELIBIDACHE AND SEEM A BIT OF BOTH BUT THEIR OBVIOUS DEVOTION TO HIM IS HEARTWARMING AND IF THE MUNICH PHILHARMONIC IS NOT ONE OF THE WORLD'S GREATEST ORCHESTRAS IT SURELY IS ONE THE MOST GRATIFYINGLY RESPONSIVE MR KLEIBER'S CONCERT CAPTURED ON A PHILIPS VIDEO WITH THE UNQUESTIONABLY GREAT AND SOPHISTICATED VIENNA PHILHARMONIC IN ITS GILDED CONCERT HALL THE MUSIKVEREIN WITH ITS INCOMPARABLE ACOUSTICS AND SNIFFY AUDIENCE CONVEYS ALMOST THE OPPOSITE ATMOSPHERE BUT THEN MR KLEIBER IS ALSO A VERY DIFFERENT SORT OF MUSICIAN IF MR CELIBIDACHE IS THE GREAT ACTOR ZEN MASTER AND SOMETIMES BUFFOON AS CONDUCTOR MR KLEIBER IS A DANCERCONDUCTOR MOVING WITH A CATLIKE GRACE THAT MUST BE SEEN TO BE BELIEVED MR KLEIBER SEEMS ALMOST PHYSICALLY CONNECTED TO THE MUSICIANS MANIPULATING THEM LIKE A PUPPET MASTER PLAYING EVERY INSTRUMENT HIMSELF THE SON OF A GREAT CONDUCTOR ERICH KLEIBER THE 63YEAROLD MR KLEIBER GIVES THE IMPRESSION OF HAVING LIVED ALL HIS LIFE INSIDE EVERY PHRASE EVERY INSTRUMENTAL LINE OF THE CONCERT REPERTORY HIS MOVEMENTS NOT ONLY ILLUMINATE PRECISE DETAILS FOR THE ORCHESTRA BUT ACTUALLY HELP THE LISTENER FOLLOW THE MUSICAL STRUCTURE AS WELL IN MOZART'S LINZ SYMPHONY A PERFORMANCE THAT EMPHASIZES A KIND OF OLDFASHIONED CLASSICAL REFINEMENT THE EFFECT IS NOT QUITE AS STARTLING AS IT IS IN THE BRAHMS SECOND SYMPHONY WHICH HE MAKES DRAMATIC AND ANALYTIC AT THE SAME TIME LOVINGLY PHRASED YET WITH CRYSTALCLEAR ORCHESTRAL BALANCES MUSIC MAY NOT BE A VISUAL MEDIUM BUT WHEN WATCHING MR KLEIBER OR MR CELIBIDACHE THE EYE ALWAYS ENHANCES THE EAR ESPECIALLY WITH THE ADVANTAGE OF LASER DISK AND ITS CD SOUND THESE TWO CONDUCTORS CAN MAKE TELEVISION MARSHALL MCLUHAN'S FAMOUSLY COOL MEDIUM VERY VERY HOT 9309030186 930903 SEMBAWANG WINS CONTRACT SINGAPORE SEMBAWANG ENGINEERING PTE PART OF THE SEMBAWANG GROUP WAS AWARDED A 226 MILLION SINGAPORE DOLLAR US141 MILLION CONTRACT TO BUILD PASSENGER LOADINGBRIDGES AT CHANGI AIRPORT THE CONTRACT WAS AWARDED BY THE CIVIL AVIATION AUTHORITY OF SINGAPORE AND IS PART OF AN EXPANSION PROJECT AT THE AIRPORT CONSTRUCTION IS EXPECTED TO BEGIN NEXT MARCH SEMBAWANG SAID 9309030185 930903 WHO'S NEWS OLSTEN CORP OLSTEN CORP WESTBURY NY RICHARD A PISKE III 44 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT CORPORATE OFFICER AND PRESIDENT OF THE STAFFING SERVICES DIVISION AT THIS HUMAN RESOURCES AND HEALTHCARE SERVICES COMPANY HE HAD BEEN SENIOR VICE PRESIDENT SOUTHEAST DIVISION AT OLSTEN 9309030184 930903 WHO'S NEWS ISS INTERNATIONAL SERVICE SYSTEM AS ISS INTERNATIONAL SERVICE SYSTEM AS COPENHAGEN POUL SCHLUTER 64 YEARS OLD AND MORTON A SWEIG 78 WERE ELECTED TO THE BOARD OF ISS INTERNATIONAL SERVICE SYSTEM INC THE US UNIT OF THIS MAINTENANCE SERVICE COMPANY INCREASING BOARD MEMBERSHIP TO NINE MR SCHLUTER IS THE FORMER PRIME MINISTER OF DENMARK AND AN ACTING MEMBER OF THE DANISH PARLIAMENT MR SWEIG BECOMES VICE CHAIRMAN HE HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NATIONAL CLEANING CONTRACTORS INC WHICH WAS ACQUIRED BY ISS IN JUNE 9309030183 930903 CANADIAN STEEL OUTPUT OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 286387 METRIC TONS FOR THE WEEK ENDED SATURDAY A 1 DECLINE FROM 289189 TONS THE PREVIOUS WEEK BUT A 26 INCREASE FROM 227714 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 9477744 TONS A 56 INCREASE FROM 8972235 TONS A YEAR EARLIER 9309030182 930903 BASF PLANS VENTURE IN CHINA FRANKFURT GERMAN CHEMICALS GROUP BASF AG ANNOUNCED A JOINT VENTURE TO BUILD A PIGMENT AND DYE PLANT IN THE CHINESE PUDONG INDUSTRIAL ZONE BASF WILL SUPPLY 51 OF THE STARTUP CAPITAL FOR THE NEW VENTURE SHANGHAI BASF COLORANTS & AUXILIARIES CO WHILE SHANGHAI DYESTUFFS CORP WILL PITCH IN THE REMAINING 49 OF THE CAPITAL BASF SAID THE PLANT IS EXPECTED TO BEGIN PRODUCTION OF PIGMENTS AND TEXTILE DYES IN 1995 BUT A WIDER RANGE OF PRODUCTION IS ANTICIPATED THE ANNOUNCEMENT SAID 9309030181 930903 COLTEC CLOSING PARTS PLANT NEW YORK COLTEC INDUSTRIES INC SAID IT WILL CLOSE ITS WALBAR PEABODY TURBINE ENGINE COMPONENTS FACILITY IN PEABODY MASS WHICH EMPLOYS 93 PEOPLE BY THE FIRST QUARTER OF 1994 PRODUCTION WILL BE CONSOLIDATED AT WALBAR PLANTS IN ARIZONA AND ONTARIO CANADA THE WALBAR METALS OPERATION WHICH PRODUCES PROTECTIVE COATINGS FOR TURBINE COMPONENTS WILL REMAIN IN PEABODY COLTEC A MANUFACTURING COMPANY WITH 14 BILLION IN REVENUE LAST YEAR ATTRIBUTED THE DECISON TO THE SLOWDOWN OF COMMERCIAL AIRCRAFT ORDERS AND REDUCTION OF DEFENSE SPENDING 9309030180 930903 GANTOS INC SALES DROP GRAND RAPIDS MICH GANTOS INC REPORTED SALES OF 142 MILLION FOR AUGUST DOWN 13 FROM THE SAME PERIOD A YEAR AGO SAMESTORE SALES ALSO DECREASED 13 GANTOS SAID YEARTODATE SALES WERE 1304 MILLION DOWN 8 FROM LAST YEAR SAMESTORE SALES ALSO DECLINED 8 THE RETAILER OF WOMEN'S WEAR AND ACCESSORIES OPERATES 158 STORES IN THE US 9309030179 930903 SOUTH KOREA MONEY SUPPLY SEOUL SOUTH KOREA'S M2 MONEY SUPPLY WHICH MEASURES CASH IN CIRCULATION PLUS DEMAND AND SAVINGS DEPOSITS EXPANDED A HEFTY 203 IN AUGUST FROM A YEAR AGO TO AN OUTSTANDING AVERAGE OF 1036 TRILLION WON 128 BILLION THE CENTRAL BANK OF KOREA SAID THE MONEY SUPPLY GROWTH IN AUGUST WAS THE HIGHESTVEL SINCE THE 207 EXPANSION POSTED IN OCTOBER 1990 THE AUGUST FIGURE WAS ALSO HIGHER THAN THE GOAL OF 18 SET FOR THE MONTH ACCORDING TO THE CENTRAL BANK TO HEAD OFF NEGATIVE SIDE EFFECTS FROM IMPLEMENTING THE RULE ON SOCALLED REALNAME FINANCIAL TRANSACTIONS THE CENTRAL BANK VIRTUALLY GAVE UP ANY HOPE OF CLINGING TO ITS YEARLY M2 GOAL OF 17 THIS YEAR ON AUG 12 KOREA BEGAN REQUIRING THAT PEOPLE STOP USING PSEUDONYMS IN FINANCIAL TRANSACTIONS FORMERLY A RELATIVELY COMMON PRACTICE THE NEW LAW THUS RIPPLES THROUGH THE MONEY SUPPLY THE SURGING TOTAL MONEY SUPPLY RAISES PUBLIC CONCERNS OVER INFLATION THE GOVERNMENT GOAL FOR INFLATION IS UNDER 5 THIS YEAR AND IT HAS ALREADY RISEN 44 AS OF THE END OF AUGUST FROM THE END OF LAST YEAR 9309030178 930903 WHO'S NEWS WR BERKLEY CORP WR BERKLEY CORP GREENWICH CONN EUGENE BALLARD 41 YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE CONTROLLER OF THIS GROUP OF INSURANCE COMPANIES MR BALLARD SUCCEEDS LARRY A HANSEN 48 WHO BECOMES SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SIGNET STAR HOLDINGS INC A NEW COMPANY JOINTLY OWNED BY WR BERKLEY AND GENERAL RE CORP MR BALLARD HAD BEEN ASSISTANT VICE PRESIDENT FINANCE AT HOME INSURANCE CO 9309030177 930903 AXA'S REVENUE ROSE FOR 1ST HALF PARIS AXA SA THE FRENCH INSURANCE GROUP SAID CONSOLIDATED REVENUE FOR THE FIRST HALF OF 1993 JUMPED 97 MAINLY BECAUSE OF THE CONSOLIDATION OF ITS 49 STAKE IN EQUITABLE COS OF THE US REVENUE ROSE TO 597 BILLION FRANCS 1025 BILLION FROM 304 BILLION FRANCS A YEAR EARLIER REVENUE FROM FINANCIAL SERVICES JUMPED 168 TO 1351 BILLION FRANCS MAINLY THE RESULT OF AXA TAKING OVER EQUITABLE'S SUBSTANTIAL FUNDMANAGEMENT ACTIVITIES 9309030176 930903 WHO'S NEWS AER ENERGY RESOURCES INC AER ENERGY RESOURCES INC SMYRNA GA BILL JACKSON AND JOHN WILKES WERE ELECTED TO THE BOARD OF THIS BATTERY COMPANY INCREASING THE NUMBER OF DIRECTORS TO SIX MR JACKSON 65 YEARS OLD IS A FORMER CHAIRMAN OF TUPPERWARE A DIVISION OF PREMARK INTERNATIONAL MR WILKES 66 HAD BEEN A SENIOR VICE PRESIDENT OF WORLDWIDE TECHNOLOGY FOR DURACELL BATTERY CO 9309030175 930903 WHO'S NEWS IMATRON INC IMATRON INC SOUTH SAN FRANCISCO CALIF GIOVANNI LANZARA CHAIRMAN OF THE TRANSPORTATION ENGINEERING DEPARTMENT AT THE UNIVERSITY OF AQUILA IN ROME WAS ELECTED A DIRECTOR OF THIS MAKER OF MEDICAL IMAGING SYSTEMS HIS APPOINTMENT FILLS A VACANCY MAINTAINING THE BOARD AT SEVEN MEMBERS 9309030174 930903 AMBER'S STORES SALES UP DALLAS AMBER'S STORES INC SAID SALES FOR AUGUST ROSE 61 TO 41 MILLION FROM 25 MILLION A YEAR AGO SALES IN STORES OPEN A YEAR OR MORE HOWEVER DECLINED 9 THE ARTS AND CRAFTS RETAILER SAID FOR THE SEVEN MONTHS IN THE FISCAL YEAR TO DATE SALES ROSE 57 TO 261 MILLION FROM 166 MILLION WHILE SALES IN STORES OPEN A YEAR OR MORE DROPPED 3 9309030173 930903 CHARMING SHOPPES SALES OFF BENSALEM PA WOMEN'S APPAREL RETAILER CHARMING SHOPPES INC SAID AUGUST SALES DECLINED SLIGHTLY TO 914 MILLION FROM 916 MILLION A YEAR EARLIER WHILE SALES FOR COMPARABLE STORES FELL 8 SALES FOR THE SEVEN MONTHS ENDED SATURDAY ROSE 5 TO 6753 MILLION FROM 6439 MILLION WHILE COMPARABLESTORE SALES FELL 3 THE COMPANY OPERATES 1264 STORES IN 44 STATES UNDER THE NAMES FASHION BUG AND FASHION BUG PLUS 9309030172 930903 BED BATH & BEYOND SALES RISE SPRINGFIELD NJ BED BATH & BEYOND INC SAID AUGUST SALES ROSE 51 TO 342 MILLION FROM 227 MILLION A YEAR EARLIER WHILE COMPARABLE STORE SALES ROSE 16 THE OPERATOR OF DOMESTIC MERCHANDISE AND HOME FURNISHINGS STORES SAID SALES FOR THE FISCAL SECOND QUARTER ROSE 46 TO 791 MILLION FROM 54 MILLION WHILE COMPARABLE STORE SALES ROSE 12 9309030171 930903 WHO'S NEWS ESYSTEMS INC ESYSTEMS INC DALLAS JAMES R COLLINS 52 YEARS OLD WAS APPOINTED VICE PRESIDENT OF STRATEGIC PLANNING AND DEVELOPMENT FOR THIS DEFENSE ELECTRONICS CONCERN HE SUCCEEDS EATON ADAMS JR WHO DIED IN JUNE MR COLLINS WHO HAS BEEN WITH THE COMPANY SINCE 1979 WAS MOST RECENTLY VICE PRESIDENT OF BUSINESS DEVELOPMENT FOR THE COMPANY'S GARLAND TEXAS DIVISION 9309030170 930903 ESYSTEMS GETS CONTRACT DALLAS ESYSTEMS INC SAID ITS MELPAR DIVISION WAS AWARDED A CONTRACT BY A NEW INTERNATIONAL CUSTOMER FOR DIGITAL AUDIO RECORDING STORAGE AND RECALL EQUIPMENT FOR NATIONAL INTELLIGENCE WORK NEITHER TERMS NOR THE CUSTOMER'S IDENTITY WERE DISCLOSED THE DEFENSE ELECTRONICS CONCERN SAID THE PROGRAM WITH INITIAL DELIVERIES EARLY NEXT YEAR WILL INCLUDE FIVE YEARS OF LOGISTICS SUPPORT 9309030169 930903 WHO'S NEWS UNIVA INC UNIVA INC MONTREAL PIERRE L MIGNAULT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SUPERMARKET COMPANY MR MIGNAULT HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF PRICE CLUB CANADA AS CHIEF EXECUTIVE HE SUCCEEDS BERTIN NADEAU WHO RESIGNED RECENTLY YVAN BUSSIERES WHO HAD BEEN PRESIDENT CONTINUES TO SERVE AS CHIEF OPERATING OFFICER 9309030168 930903 HILO'S AUGUST SALES ROSE HOUSTON HILO AUTOMOTIVE INC SAID HOT DRY WEATHER IN ITS MARKET AREA HELPED AUGUST SALES RISE 15 TO 199 MILLION FROM 172 MILLION A YEAR AGO SALES IN STORES OPEN A YEAR OR MORE ROSE 62 THE AUTO PARTS SELLER SAID THAT FOR ITS FIRST EIGHT MONTHS SALES ROSE 89 TO 1379 MILLION FROM 1267 MILLION WITH SALES IN STORES OPEN A YEAR OR MORE RISING 61 HILO AUTOMOTIVE INC'S SALES AT STORES OPEN A YEAR OR MORE FOR THE FIRST EIGHT MONTHS OF THE YEAR ROSE 01 AN ARTICLE FRIDAY INCORRECTLY REPORTED THE FIGURE AS 61 9309030167 930903 PIER 1 POSTS HIGHER SALES FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY ROSE 10 TO 578 MILLION FROM 524 MILLION A YEAR AGO SALES IN STORES OPEN A YEAR OR MORE INCREASED 74 THE HOME FURNISHINGS RETAILER SAID FOR THE SECOND QUARTER ENDED SATURDAY SALES GREW 9 TO 1814 MILLION FROM 1664 MILLION LAST YEAR THE COMPANY SAID SALES IN STORES OPEN A YEAR OR MORE ROSE 62 IN THE QUARTER 9309030166 930903 DWG CORP UNIT SELLS ASSETS WEST PALM BEACH FLA SOUTHEASTERN PUBLIC SERVICE CO A MUNICIPAL SERVICE PROVIDER AND UNIT OF DWG CORP SAID IT AGREED TO SELL ALL THE ASSETS OF ITS TREE MAINTENANCE SERVICES BUSINESSES FOR ABOUT 70 MILLION TO ASPLUNDH TREE EXPERT CO OF PHILADELPHIA ASPLUNDH ALSO PLANS TO ASSUME AS MUCH AS 5 MILLION IN CURRENT LIABILITIES 9309030165 930903 CORRECTIONS & AMPLIFICATIONS LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO IS OFFERING SENIOR EXECUTIVES THE OPPORTUNITY TO SWAP PART OF THEIR 1993 BONUS FOR SIX MILLION SHARES IN A 60 MILLION PRIVATE PLACEMENT OF PHANTOM LEHMAN STOCK AN ARTICLE YESTERDAY INCORRECTLY GAVE THE VALUE OF THE PRIVATE PLACEMENT AS 6 MILLION 9309030164 930903 WHO'S NEWS IMPERIAL HOLLY CORP IMPERIAL HOLLY CORP SUGAR LAND TEXAS ROBERT C HANNA PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SUGAR PROCESSING COMPANY ANNOUNCED PLANS TO RETIRE SEPT 30 MR HANNA 64 YEARS OLD WILL BECOME A VICE CHAIRMAN OF THE COMPANY AFTER 14 YEARS AS PRESIDENT AND CEO HE WILL BE SUCCEEDED BY JAMES C KEMPNER 54 NOW EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9309030163 930903 WHO'S NEWS TYCO LABORATORIES INC TYCO LABORATORIES INC EXETER NH ROBERT P MEAD 42YEAROLD PRESIDENT OF THE COMPANY'S FLOW CONTROL OPERATIONS WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT FOR THIS CONCERN WHICH ALSO HAS INTERESTS IN FIRE PROTECTION SYSTEMS ELECTRONICS AND PACKAGING MATERIALS 9309030162 930903 ANNTAYLOR STORES SALES NEW YORK ANNTAYLOR STORES CORP SAID NET SALES FOR OWNED STORES ROSE 06 IN AUGUST TO 324 MILLION FROM 322 MILLION A YEAR EARLIER WHILE COMPARABLESTORE SALES FELL 22 WHEN LEASED SHOE DEPARTMENTS WHICH WERE PHASED OUT EFFECTIVE FEB 1 ARE INCLUDED IN SALES FIGURES TOTAL SALES FOR AUGUST DECLINED 04 AND COMPARABLESTORE SALES DECLINED 31 ANNTAYLOR A WOMEN'S APPAREL CHAIN OPERATES 219 STORES IN 38 STATES AND THE DISTRICT OF COLUMBIA 9309030161 930903 REX STORES' SALES RISE 29 DAYTON OHIO REX STORES CORP SAID SALES FOR AUGUST TOTALED 197 MILLION UP 29 FROM 153 MILLION IN THE SAME YEARAGO PERIOD THE SPECIALTY RETAILER OF CONSUMER ELECTRONICS PRODUCTS AND APPLIANCES SAID COMPARABLESTORE SALES ROSE 13 TO 17 MILLION FROM 15 MILLION IN AUGUST 1992 YEARTODATE SALES CLIMBED 27 TO 1305 MILLION FROM 1027 MILLION YEARTODATE COMPARABLESTORE SALES ROSE 11 THE COMPANY SAID COMPARABLESTORE SALES ARE THOSE FOR STORES OPEN FOR AT LEAST FOUR FISCAL QUARTERS 9309030160 930903 CONSOLIDATED STORES SALES COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE MONTH ENDED SATURDAY ROSE 11 TO 717 MILLION FROM 647 MILLION IN THE YEARAGO PERIOD SALES FOR THE FIRST SEVEN MONTHS OF ITS CURRENT YEAR INCREASED 13 TO 5084 MILLION FROM 4492 MILLION COMPARABLESTORE SALES INCREASED 2 FOR THE MONTH AND 14 FOR THE YEARTODATE PERIOD THE COMPANY SAID COMPARABLESTORE SALES ARE THOSE IN STORES OPEN TWO YEARS AT THE BEGINNING OF THE FISCAL YEAR 9309030159 930903 KODAK UNIT'S ENTRY IN CHINA ROCHESTER NY EASTMAN KODAK CO'S STERLING WINTHROP DRUG UNIT SAID IT FORMED A 6040 JOINT VENTURE TO MARKET ITS PANADOL ANALGESICS AND OTHER OVERTHECOUNTER MEDICINES IN CHINA UNDER TERMS STERLING WITH A 60 STAKE IN THE JOINT VENTURE WILL PROVIDE MANUFACTURING AND TECHNICAL EXPERTISE TO SHANGHAI MEIYOU PHARMACEUTICAL CO WHICH WILL MAKE AND MARKET THE PRODUCTS SHANGHAI MEIYOU IS BASED IN NANCHANG PROVINCE IN SHANGHAI CHINA THE MOVE MARKS STERLING'S FIRST ENTRY INTO THE CHINESE MARKET 9309030158 930903 HOTEL INDUSTRY TO REVIVE IN 1995 SURVEY PREDICTS AFTER A FEW YEARS OF MODEST BUT STEADY RECOVERY THE HOTEL INDUSTRY WILL EXPERIENCE A LONGAWAITED REVIVAL IN 1995 ACCORDING TO A SURVEY BY PKF CONSULTING JOHN FOX A DIRECTOR OF THE HOSPITALITY CONSULTING FIRM SAID THE INDUSTRY'S RECOVERY WILL BE AIDED BY INCREASED DEMAND FEW NEW HOTEL ROOMS BEING BUILT IMPROVED COST CONTROLS AND A RELATED RISE IN THE VALUE OF HOTEL ASSETS BY 1995 AVERAGE ROOM RATES ARE EXPECTED TO OUTSTRIP INFLATION FOR THE FIRST TIME SINCE THE LATE 1980S FOR 1993 THE INDUSTRY IS EXPECTED TO SHOW AVERAGE OCCUPANCY LEVELS OF 682 RISING TO 696 IN 1994 BY 1995 MR FOX SAID THE INDUSTRY WILL BENEFIT FROM FOUR CONSECUTIVE YEARS OF GROWTH IN ROOM SUPPLY OF LESS THAN 1 AND THREE CONSECUTIVE YEARS OF INCREASED DEMAND THE LODGING BUSINESS HAS SUFFERED OVER THE PAST SEVERAL YEARS FROM OVERBUILDING HIGH LEVERAGE AND A WEAK ECONOMY 9309030157 930903 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK MICHAEL DEY WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT GENERAL MANAGER OF ESIPHARMA INC AT THIS PHARMACEUTICAL CONCERN'S WYETHAHERST LABORATORIES UNIT ESIPHARMA IS WYETHAHERST'S NEWLY FORMED AFFILIATE CONCENTRATING ON DEVELOPING AND MARKETING GENERIC PHARMACEUTICALS MR DEY 42 YEARS OLD JOINED WYETHAHERST IN 1984 AND MOST RECENTLY WAS SECTION HEAD OF THE PHARMACEUTICAL SCIENCES DIVISION 9309030156 930903 CHINA SANCTIONS CLOUD PROPOSALS BY BROADCASTERS PLANS TO BEAM TV SIGNALS TO ASIANS UP IN THE AIR FOLLOWING MOVE BY US BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG SANCTIONS PROHIBITING THE SALE OF US SATELLITE TECHNOLOGY TO CHINA ARE CLOUDING PLANS BY MANY INTERNATIONAL TELEVISION BROADCASTERS TO BEAM THEIR PROGRAMMING INTO ASIA'S LIVING ROOMS A WEEK AFTER THE US GOVERNMENT ANNOUNCED THE SANCTIONS INTERNATIONAL BROADCASTERS SAY IT IS STILL UNCLEAR WHETHER THEIR ASIAN PLANS WILL BE AFFECTED TELEVISION AND SATELLITE INDUSTRY EXECUTIVES DESCRIBE THE US GOVERNMENT'S ATTEMPTS TO CLARIFY THE SITUATION AS CONFUSING THEY SAY POLITICAL ISSUES MAY AT LEAST TEMPORARILY BLOCK PLANNED VENTURES THE IMPOSITION OF SANCTIONS HAS RAISED QUESTIONS ABOUT THE LAUNCH OF THREE REGIONAL SATELLITES MANUFACTURED BY US COMPANIES APSTAR 1 WHICH IS BEING BUILT BY GM HUGHES ELECTRONICS CORP ASIASAT 2 UNDER CONSTRUCTION BY MARTIN MARIETTA CORP AND A THIRD SATELLITE YET TO BE NAMED BUT EXPECTED TO BE SUPPLIED BY GM HUGHES A UNIT OF GENERAL MOTORS CORP SENIOR EXECUTIVES FROM SOME OF THE WORLD'S LEADING MEDIA COMPANIES INCLUDING NEWS CORP OF AUSTRALIA AND TIME WARNER INC OF THE US HAVE PROCLAIMED ASIA A MAJOR NEW MARKET FOR THEIR TELEVISION PROGRAMMING AND OTHER PLANNED MEDIARELATED SERVICES LAST MONTH NEWS CORP PAID 525 MILLION FOR A CONTROLLING STAKE IN ASIA'S DOMINANT SATELLITE BROADCASTER STAR TV OF HONG KONG IT REMAINS TO BE DETERMINED WHETHER INTERNATIONAL BROADCASTERS' PLANS ARE THREATENED BY THE SANCTIONS SAID ROBERT W ROSS VICE PRESIDENT OF INTERNATIONAL BUSINESS AND NETWORK DEVELOPMENT FOR TURNER BROADCASTING SYSTEM INC OF ATLANTA IT DEPENDS ON THE MESSAGE US OFFICIALS WANT TO SEND TO THE CHINESE MR ROSS SAID HE BELIEVED INTERPRETATION OF THE RULES COVERING THE GOVERNMENT SANCTIONS DEPENDS ON NEGOTIATIONS BETWEEN THE US STATE DEPARTMENT AND THE CHINESE GOVERNMENT ON THE ISSUES OF ARMS CONTROL AND HUMAN RIGHTS AS OF TODAY I DON'T THINK ANYONE HAS ANY REAL CERTAINTY ABOUT HOW THE RULES WILL BE APPLIED MR ROSS SAID TURNER WHICH BROADCASTS ITS CABLE NEWS NETWORK CHANNEL TO SOUTHEAST ASIA OVER INDONESIA'S PALAPA B2P SATELLITE IS ONE OF THREE US COMPANIES ATTEMPTING TO EXPAND DISTRIBUTION INTO TAIWAN AND CHINA TURNER IS IN THE FINAL STAGES OF NEGOTIATING AN AGREEMENT TO LEASE SATELLITE CAPACITY FROM APT SATELLITE CO A HONG KONGREGISTERED COMPANY WITH TIES TO THE CHINESE GOVERNMENT THE CAPACITY WOULD EXTEND TURNER'S SATELLITE COVERAGE TO BOTH TAIWAN AND CHINA THE TWO OTHER US BROADCASTERS NEGOTIATING ALONGSIDE TURNER ARE SPORTS CHANNEL ESPN INC WHICH IS 80OWNED BY CAPITAL CITIES/ABC INC OF NEW YORK AND HOME BOX OFFICE A UNIT OF TIME WARNER MR ROSS OF TURNER SAID THE APSTAR 1 SATELLITE TO BE OPERATED BY APT HAD RECEIVED ALL NECESSARY LICENSES BEFORE THE IMPOSITION OF SANCTIONS BUT THAT HE ISN'T CERTAIN WHETHER THE SATELLITE'S LAUNCH IS SECURE THE FATE OF STAR TV'S SATELLITE CAPACITY ALSO IS UNCERTAIN STAR HAS OPTIONS TO LEASE EIGHT ADDITIONAL TRANSPONDERS OR TRANSMISSION CHANNELS ON THE ASIASAT 2 SATELLITE FROM ASIA SATELLITE TELECOMMUNICATIONS CO OF HONG KONG THAT SATELLITE IS DUE TO BE LAUNCHED IN LATE 1994 OR EARLY 1995 BY CHINA GREAT WALL INDUSTRIES CORP ONE OF 10 COMPANIES LISTED BY THE US GOVERNMENT AS A TARGET OF THE SANCTIONS EVEN IF ASIASAT 2 IS EXEMPTED FROM THE SANCTIONS THE SATELLITE FACES OTHER HURDLES A DISPUTE BETWEEN ASIA SATELLITE TELECOM MUNICATIONS AND A RIVAL THAI SATELLITE OPERATOR ALSO THREATENS TO BLOCK OR DELAY THE LAUNCH OF ASIASAT 2 BOTH SATELLITE COMPANIES CLAIM THE SAME ORBITAL SLOT THE PLACE IN SPACE FROM WHICH A SATELLITE BEAMS ITS SIGNALS TO EARTH PETER JACKSON CHIEF EXECUTIVE OFFICER OF ASIA SATELLITE TELECOMMUNICATIONS INSISTS THAT TALKS BETWEEN THE TWO COMPANIES ARE STILL PROGRESSING QUITE SATISFACTORILY BUT ACKNOWLEDGED THAT THE DISPUTE HAS NOT BEEN RESOLVED ANOTHER UNCERTAINTY HANGS OVER NEWS CORP'S PLANS TO EXPAND STAR'S PLANNED PAYTELEVISION SERVICE THROUGHOUT ASIA FOR THAT EXPANSION STAR IS RELYING PARTLY ON AN AGREEMENT IN PRINCIPLE WITH ASIA PACIFIC SATELLITE CO WHICH OPERATES FROM HONG KONG TO LEASE CAPACITY BUT SOME EXECUTIVES FAMILIAR WITH THE ACCORD SUGGEST IT COULD BE SUPERSEDED IF A HIGHER BIDDER FOR THE CAPACITY EMERGES A SPOKESMAN FOR STAR DECLINED TO COMMENT 9309030155 930903 STERLING ELECTRONICS REDEMPTION HOUSTON STERLING ELECTRONICS CORP SAID ITS BOARD AUTHORIZED THE REDEMPTION ON OCT 25 OF ALL OF ITS 1075 CONVERTIBLE DEBENTURES OUTSTANDING DUE JUNE 1 2009 THE DEBENTURES ARE CONVERTIBLE INTO STERLING COMMON STOCK AT 5125 A SHARE BECAUSE THE COMPANY'S SHARES TRADE AT A SUBSTANTIALLY HIGHER PRICE STERLING SAID IT ASSUMES HOLDERS WILL ELECT TO CONVERT THEIR DEBENTURES TO COMMON STOCK THE ELECTRONIC PARTS DISTRIBUTOR SAID DEBENTURES WITH A FACE VALUE OF 64 MILLION CONVERTIBLE INTO 1249000 COMMON SHARES WERE OUTSTANDING ON AUG 31 IT SAID THE REDEMPTION IS INTENDED TO REDUCE DEBT INCREASE SHAREHOLDER'S EQUITY AND REDUCE FUTURE INTEREST EXPENSE STERLING SAID IT EXPECTS TO SEND OUT REDEMPTION NOTICES SEPT 23 9309030154 930903 TODAY'S MAN AUGUST SALES ROSE MOORESTOWN NJ TODAY'S MAN INC SAID AUGUST SALES ROSE 32 TO 79 MILLION FROM 6 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST ONE YEAR ROSE 11 FOR THE SEVEN MONTHS ENDED AUG 28 SALES CLIMBED 25 TO 781 MILLION FROM 625 MILLION WHILE SAMESTORE SALES INCREASED 45 THE COMPANY OPERATES 18 MENSWEAR SUPERSTORES IN THE NORTHEAST 9309030153 930903 MOODY'S CONSIDERS LOWERING DEBT RATINGS OF 2 JAPANESE BANKS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS CONSIDERING LOWERING DEBT RATINGS FOR TWO JAPANESE BANKS DAIICHI KANGYO BANK LTD AND SAKURA BANK LTD AS WELL AS SOME OF THEIR UNITS THE REVIEW COULD AFFECT ABOUT 34 BILLION IN DAIICHI DEBT THE BANK'S SENIOR DEBT IS RATED DOUBLEA3 MOODY'S SAID THE REVIEW WILL FOCUS ON DAIICHI'S ASSET QUALITY PARTICULARLY THE BANK'S DOMESTIC AND OVERSEAS REALESTATE RELATED EXPOSURE AND WILL ALSO EXAMINE FACTORS CONTRIBUTING TO WHAT IT CALLED DAIICHI'S HISTORICALLY POOR PROFITABILITY THE SAKURA BANK REVIEW COULD AFFECT 49 BILLION IN DEBT INCLUDING SINGLEA1 SENIOR DEBT MOODY'S SAID IT WILL FOCUS ON SAKURA'S ASSET QUALITY INCLUDING NONPERFORMING AND RESTRUCTURED LOANS AND THE RISKS POSED BY NONBANK AFFILIATES 9309030152 930903 TECHNOLOGY MYLAN GETS DRUG CLEARANCE PITTSBURGH MYLAN LABORATORIES INC SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET NAPROXEN TABLETS THE GENERIC VERSION OF SYNTEX CORP'S NAPROSYN AN ANTIINFLAMMATORY DRUG USED FOR TREATING SUCH AILMENTS AS ARTHRITIS AND TENDINITIS MYLAN SAID NAPROSYN HAD SALES OF 593 MILLION IN 1992 MYLAN SAID THREE OTHER COMPANIES HAVE ALSO RECEIVED APPROVAL TO MARKET GENERIC VERSIONS OF THE DRUG AFTER SYNTEX'S PATENT EXPIRES DEC 21 9309030151 930903 SECONDQUARTER NET OF INSURANCE CONCERNS ROSE TO 49 BILLION NEW YORK US PROPERTYCASUALTY INSURANCE COMPANIES HAD CONSOLIDATED NET INCOME OF 49 BILLION IN THE SECOND QUARTER UP FROM 28 BILLION A YEAR EARLIER RESULTS INCLUDED PRETAX OPERATING INCOME OF 45 BILLION REFLECTING AN UNDERWRITING LOSS OF 38 BILLION AND PRETAX INVESTMENT INCOME OF 82 BILLION A YEAR EARLIER PRETAX OPERATING INCOME WAS 26 BILLION INCLUDING A 59 BILLION UNDERWRITING LOSS AND NET INVESTMENT INCOME OF 85 BILLION REALIZED CAPITAL GAINS FOR THE LATEST QUARTER TOTALED 2 BILLION UP FROM 12 BILLION A YEAR EARLIER THE INDUSTRY'S CONSOLIDATED SURPLUSOR ASSETS MINUS LIABILITIES ROSE 63 IN THE FIRST HALF TO 1734 BILLION AT JUNE 30 FROM 1631 BILLION AT THE END OF 1992 WRITTEN PREMIUMS TOTALED 604 BILLION FOR THE SECOND QUARTER UP 59 FROM THE YEAREARLIER PERIOD 9309030150 930903 US SHOE CORP AUGUST SALES CINCINNATI US SHOE CORP SAID SAMESTORE SALES FOR THE FOUR WEEKS ENDED AUG 28 DECLINED 04 FROM A YEAR EARLIER WHILE TOTAL SALES FOR THE PERIOD ROSE 01 TO 163 MILLION THE COMPANY HAD A RETAIL BASE OF 2361 STORES IN THE 1993 PERIOD COMPARED WITH 2437 LAST YEAR COMPARABLE SALES OF THE WOMEN'S APPAREL GROUP WHICH INCLUDES US SHOE'S TROUBLED CASUAL CORNER DIVISION FELL 18 WHILE OVERALL SALES FELL 36 TO 785 MILLION FROM THE YEAREARLIER PERIOD THE LENSCRAFTERS DIVISION'S COMPARABLE SALES ROSE 42 WHILE OVERALL SALES ROSE 39 TO 556 MILLION THE COMPANY'S FOOTWEAR DIVISION'S COMPARABLE SALES FELL 32 WHILE OVERALL SALES FELL 12 TO 224 MILLION 9309030149 930903 BONTON STORES INC SALES SLIP YORK PA BONTON STORES INC SAID AUGUST SALES FELL 11 TO 241 MILLION FROM 244 MILLION A YEAR EARLIER WHILE SAMESTORE SALES FELL 53 FOR THE 30 WEEKS ENDED AUG 28 SALES ROSE 14 TO 1609 MILLION FROM 1586 MILLION WHILE SAMESTORE SALES FELL 24 THE COMPANY SAID REDUCED PROMOTION OF SUMMER CLEARANCE MERCHANDISE IN AUGUST WAS A MAJOR FACTOR IN THE DECLINE IN COMPARABLESTORE SALES WE ARE PLEASED WITH OUR INVENTORY POSITION AS WE ENTER THE FALL SELLING SEASON THE COMPANY SAID BONTON OPERATES 36 DEPARTMENT STORES IN SECONDARY MARKETS IN PENNSYLVANIA NEW YORK MARYLAND AND WEST VIRGINIA 9309030148 930903 NATWEST SELLS LOAN PORTFOLIO JERSEY CITY NJ NATIONAL WESTMINSTER BANCORP SAID IT SOLD A PORTFOLIO OF NONPERFORMING REALESTATE LOANS AND PROPERTIES ORIGINALLY VALUED AT 164 MILLION TO DAIWA SECURITIES AMERICAN INC FOR AN UNDISCLOSED SUM THE PORTFOLIO CONTAINS THE MAJORITY OF NATWEST'S NONPERFORMING NEW JERSEY REALESTATE ASSETS INCLUDING SINGLEFAMILY MULTIFAMILY RETAIL OFFICE AND LAND LOANS AND PROPERTIES NATWEST IS A SUBSIDIARY OF LONDON'S NATIONAL WESTMINSTER BANK PLC DAIWA IS AN ARM OF TOKYO'S DAIWA SECURITIES CO 9309030147 930903 CANADA'S TOP TWO BANKS FAIL TO MEET EXPECTATIONS FOR FISCAL 3RDQUARTER NET BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADA'S TWO BIGGEST BANKS SAID THEIR LOSSES FROM BAD LOANS THIS YEAR WILL BE WORSE THAN THEY PREVIOUSLY EXPECTED BECAUSE OF A FURTHER DETERIORATION IN THE COUNTRY'S COMMERCIAL REALESTATE MARKET BECAUSE OF THE LOAN LOSSES WHICH ARE CHARGED AGAINST PROFITS ROYAL BANK OF CANADA AND CANADIAN IMPERIAL BANK OF COMMERCE YESTERDAY REPORTED FISCAL THIRDQUARTER EARNINGS THAT WERE BELOW ANALYSTS' FORECASTS BY CONTRAST OVER THE PAST WEEK CANADA'S OTHER THREE BIGGEST BANKS REPORTED EARNINGS THAT EXCEEDED MARKET PROJECTIONS AMONG CANADA'S MAJOR BANKS ROYAL BANK AND CANADIAN IMPERIAL ARE ESPECIALLY VULNERABLE TO SOURED LOANS BECAUSE OF THEIR PAST AGGRESSIVE LENDING TO THE COMMERCIAL REALESTATE SECTOR ANALYSTS SAID AND EVEN AS US REAL ESTATE SHOWS TENTATIVE SIGNS OF COMING BACK TO LIFE CANADIAN LENDERS CONTINUE TO SUFFER FROM SLUMPING PROPERTY VALUES I WOULD VIEW CANADA'S MARKET AS BEING ABOUT WHERE THE US WAS 12 TO 18 MONTHS AGO GROPING FOR A BOTTOM AND SOME CREDITS CONTINUING TO SLIP SAID JOHN LEONARD AN ANALYST AT SALOMON BROTHERS INC IN NEW YORK ROYAL BANK THE COUNTRY'S BIGGEST RAISED ITS ESTIMATE FOR LOSSES FROM PROPERTY LOANS THIS YEAR TO ONE BILLION CANADIAN DOLLARS US7537 MILLION FROM C820 MILLION PROJECTED PREVIOUSLY ALSO IN THE THIRD QUARTER THE MONTREAL BANK SHIFTED C250 MILLION OF LOANLOSS PROVISIONS PREVIOUSLY SET ASIDE FOR RISKY DEVELOPINGCOUNTRY DEBT INTO ITS REALESTATE PORTFOLIO ROYAL BANK LAST YEAR WROTE DOWN C205 BILLION OF LOANS IN ITS FISCAL THIRD QUARTER ENDED JULY 31 ROYAL BANK HAD A PROFIT OF C223 MILLION OR 58 CANADIAN CENTS A SHARE AFTER CHARGING C265 MILLION FOR BAD LOANS A YEAR EARLIER THE BANK EARNED C112 MILLION OR 26 CANADIAN CENTS A SHARE AFTER CHARGING C390 MILLION MEANWHILE CANADIAN IMPERIAL SAID IT EXPECTS LOAN LOSSES THIS YEAR OF C920 MILLION UP FROM ITS EARLIER ESTIMATE OF C880 MILLION LAST YEAR THE TORONTO BANK HAD C184 BILLION OF LOAN LOSSES CANADIAN IMPERIAL HAD PROFIT IN THE THIRD QUARTER ENDED JULY 31 OF C190 MILLION OR 75 CANADIAN CENTS A SHARE INCLUDING A CHARGE FOR LOAN LOSSES OF C240 MILLION A YEAR EARLIER THE BANK EARNED C186 MILLION OR 85 CANADIAN CENTS A SHARE AFTER CHARGING C188 MILLION IN TORONTO STOCK EXCHANGE TRADING YESTERDAY ROYAL BANK SHARES LOST 50 CANADIAN CENTS TO CLOSE AT C2750 CANADIAN IMPERIAL SHARES WERE DOWN 25 CANADIAN CENTS TO CLOSE AT C3275 9309030146 930903 HEINEKEN EARNINGS FELL 64 FOR HALF ON DECLINING SALES SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM FIRSTHALF NET INCOME FOR DUTCH BREWING GROUP HEINEKEN NV FELL 64 TO 2201 MILLION GUILDERS 1180 MILLION DUE TO A DECLINE IN SALES AND TO A ONETIME GAIN THAT BUOYED RESULTS IN THE YEAREARLIER PERIOD THE AMSTERDAMBASED COMPANY ALSO DECLARED AN UNCHANGED INTERIM DIVIDEND OF 150 GUILDERS 80 US CENTS A SHARE YEAREARLIER NET OF 2352 MILLION GUILDERS WAS BOLSTERED BY 374 MILLION GUILDERS OF ONETIME AFTERTAX GAINS EXCLUDING THE EXTRAORDINARY ITEMS THE COMPANY'S FIRSTHALF NET ROSE 11 TO 2201 MILLION GUILDERS FROM 1977 MILLION GUILDERS FIRSTHALF SALES WERE OFF 15 TO 452 BILLION GUILDERS 242 BILLION FROM 459 BILLION GUILDERS DUE TO A 1 DROP IN THE VOLUME OF BEER DELIVERED AND TO UNFAVORABLE EXCHANGE RATES ADJUSTING FOR CURRENCY FLUCTUATIONS SALES ROSE 6 FOR THE PERIOD BENEFITS FROM A RESTRUCTURING PROGRAM HELPED BUFFER THE COMPANY FROM PRICE COMPETITION HEINEKEN SAID AS DID SHIFTS IN ITS ARRAY OF PRODUCTS THE COMPANY ADDED THAT PERSONNEL COSTS DECLINED 66 MILLION GUILDERS OR 85 FROM THE YEAREARLIER FIRST HALF NET INTEREST EXPENSE WAS CUT BY TWOTHIRDS FOR THE PERIOD TO 118 MILLION GUILDERS AS DEPRECIATION CHARGES FELL NEARLY 27 MILLION GUILDERS OR 10 FOR THE REMAINDER OF THE YEAR HEINEKEN ISN'T PARTICULARLY OPTIMISTIC SAYING IT DOESN'T EXPECT TO CONTINUE THE 11 GROWTH IT POSTED IN EARNINGS FOR NORMAL OPERATIONS THE STANDARD SEGMENT OF THE BEER MARKET IS FALLING IN EUROPE DUE TO THE RECESSION HEINEKEN SAID ADDING THAT EVEN THOUGH THE COMPANY WILL STRIVE TO HOLD MARKET SHARE IT EXPECTS THE VOLUME OF DELIVERIES TO FALL WORLDWIDE HOWEVER IT EXPECTS SOME GROWTH THERE IS ROOM TO EXPAND MARKET SHARE IN THE PREMIUMBEER MARKET IN EUROPE THE US AND ASIA IT SAID WITH PROFIT MARGINS HELPED BY CONTINUING COSTCUTTING 9309030145 930903 THURSDAY'S MARKETS BOND MARKET SURGES BUT FAILS TO BOOST STOCKS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A SHARP BOND MARKET RALLY FAILED TO BOLSTER STOCK PRICES WHICH ENDED MIXED THE DOLLAR FELL AGAINST THE MARK BUT ROSE AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE SANK 1900 TO 362610 STANDARD & POOR'S 500STOCK INDEX FELL 185 TO 46130 BUT THE NASDAQ COMPOSITE INDEX CONTINUED ITS RECORDBREAKING RALLY CLOSING UP 250 AT A HIGH OF 74865 ANALYSTS SAID BOND PRICES SURGED IN ANTICIPATION OF A WEAK EMPLOYMENT REPORT TODAY WHICH WOULD SIGNAL THAT INFLATION IS LIKELY TO REMAIN SUBDUED THE BOND MARKET RALLY DROVE THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE DOWN TO 604 THE LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 BUT STOCK PRICES TOOK LITTLE ENCOURAGEMENT FROM PLUNGING INTEREST RATES CONCERNS ABOUT ECONOMIC WEAKNESS ARE OFFSETTING THE OPTIMISM ABOUT LOW INTEREST RATES SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS ALL OF A SUDDEN PEOPLE ARE STARTING TO WORRY ABOUT CORPORATE EARNINGS MR SHULMAN SAID AMONG THE FEW STRONG PERFORMERS YESTERDAY WERE DRUG AND HEALTHCARE STOCKS WHICH SURGED AFTER THE CLINTON ADMINISTRATION RULED OUT IMPOSING PRICE CONTROLS ON THE HEALTHCARE INDUSTRY MEDICALRELATED ISSUES WERE INSTRUMENTAL IN PUSHING THE NASDAQ COMPOSITE INDEX TO ANOTHER RECORD YESTERDAY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 023 TO 11311 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 259409000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1033 ISSUES DECLINED AND 945 ADVANCED BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 5/8 POINT OR MORE THAN 625 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16440 MARKS AND 10585 YEN COMPARED WITH 16593 MARKS AND 10530 YEN WEDNESDAY 9309030144 930903 BUSINESS BRIEF NESTLE SA CANADIAN UNIT TO RESUME SALES OF ITS SMARTIES CANDY THE CANADIAN SUBSIDIARY OF NESTLE SA OF SWITZERLAND SAID IT WAS PUTTING ITS SMARTIES CANDY BACK ON SALE AFTER TRACING THE CAUSE OF SOME CONSUMER COMPLAINTS TO THE INK ON CERTAIN PROMOTIONAL PACKAGES THE COMPANY IN TORONTO SAID IT WILL CONTINUE TO RECALL THE PROMOTIONAL PACKAGES IT SAID THE INK ON THOSE PACKAGES HAD AN ODOR BECAUSE IT HADN'T SUFFICIENTLY DRIED NESTLE CANADA INC ORDERED A RECALL OF THE POPULAR CANDY LAST MONTH AFTER TWO CONSUMERS COMPLAINED TO A GOVERNMENT AGENCY ABOUT AN ODD TASTE AND A SLIGHT IRRITATION OF THE MOUTH NESTLE DOESN'T SELL SMARTIES IN THE US