SAND'S AMONG CARCINOGENS SOME SAVANTS SO SUBMIT WE MUST SAY IT'S UNTRUE GRIT WITH SOME POOR EARLY BIRD WHAT WE KNOW ON THE WHOLE THE GREATER THE TOLL 9309030142 930903 MARKETING & MEDIA RJR PROFIT TO FALL BY 900 MILLION DUE TO PRICE WAR BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP SAID THE TOBACCO PRICE WAR WILL COST IT 900 MILLION IN OPERATING PROFIT THIS YEAR A LARGERTHANEXPECTED FIGURE THAT PROMPTED SOME ANALYSTS TO SAY RJR ISN'T MOVING FAST ENOUGH TO CUT EXPENSES A NUMBER OF WALL STREET ANALYSTS CUT THEIR EARNINGS PROJECTIONS FOR RJR FOLLOWING ITS BLEAK EARNINGS FORECAST LAST YEAR RJR'S OPERATING PROFIT WAS 29 BILLION AND A 900 MILLION DECLINE WOULD AMOUNT TO 31 OF THE COMPANY'S 1992 EARNINGS IT WAS WORSE THAN I EXPECTED SAID S LEIGH FERST A TOBACCO ANALYST WITH PRUDENTIAL SECURITIES INC WHO TRIMMED HER 1993 EARNINGS ESTIMATE BY 16 TO 38 CENTS A SHARE LAST YEAR RJR EARNED 61 CENTS A SHARE ON A FULLY DILUTED BASIS MANY INVESTORS HAVE ALREADY WRITTEN OFF TOBACCO STOCKS FOR THIS YEAR RJR SHARES BARELY MOVED YESTERDAY EASING 125 CENTS TO 4875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RJR REITERATED YESTERDAY THAT ITS EARNINGS GROWTH WILL RESUME NEXT YEAR ANALYSTS HOWEVER SAID RJR MUST FIRST GET MORE SERIOUS ABOUT SLASHING EXPENSES THE FOCUS OF COSTCUTTING IS EXPECTED TO BE RJR'S ESTIMATED 25 BILLION MARKETING BUDGET ANALYSTS THINK THE COMPANY MAY CUT OUT 250 MILLION IN PROMOTIONAL EXPENSES NEXT YEAR BUT MS FERST OF PRUDENTIAL SAID I'M SURE THERE WILL ALSO BE A BIG HEADCOUNT REDUCTION GARY BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO SAID HE EXPECTS RJR TO TAKE A BIGBATH RESTRUCTURING CHARGE IN THE FOURTH QUARTER AS THE COMPANY MOVES TO CUT EXPENSES THE COMPANY DECLINED TO RESPOND TO SUCH ASSERTIONS RJR DECLINED TO DISCUSS PLANS TO CUT COSTS BUT DID LITTLE YESTERDAY TO DISPEL EXPECTATIONS THAT A RESTRUCTURING PROGRAM WILL BE ANNOUNCED BEFORE THE END OF THE YEAR IN A STATEMENT THE COMPANY SAID AGGRESSIVE MARGIN IMPROVEMENT PROGRAMS IN ALL OF ITS OPERATIONS WOULD BOLSTER PROFIT NEXT YEAR AND CHARLES M HARPER RJR'S CHAIRMAN AND CHIEF EXECUTIVE ISSUED A STATEMENT IN WHICH HE REITERATED A COMMENT HE MADE IN JULY WE PLAN TO GET OUR HOUSE IN ORDER THIS YEAR PHILIP MORRIS COS ROILED THE TOBACCO INDUSTRY ON APRIL 2 WHEN IT CUT THE PRICE OF MARLBORO AND OTHER PREMIUM CIGARETTES BY 40 CENTS A PACK AT THE TIME PHILIP MORRIS SAID THE PRICE CUTS WOULD COST IT 2 BILLION IN OPERATING PROFITS OR 40 OF THE EARNINGS FROM ITS DOMESTIC TOBACCO BUSINESS RJR'S PROJECTED 900 MILLION DECLINE IN OPERATING NET WOULD AMOUNT TO 43 OF ITS 1992 DOMESTIC TOBACCO PROFITS OF 21 BILLION 9309030141 930903 INTERNATIONAL CHINA'S FIRST RIGHTS ISSUE FOR FOREIGN INVESTORS FLOPS SPECIAL TO THE WALL STREET JOURNAL HONG KONG CHINA'S FIRST RIGHTS ISSUE FOR FOREIGN INVESTORS FLOPPED THE DEADLINE PASSING WITH NO APPLICATIONS FROM OVERSEAS SHAREHOLDERS FOR SUBSCRIPTION BUT THE COMPANY ITSELF SHANGHAI VACUUM ELECTRON DEVICES CO A MANUFACTURER OF TELEVISION TUBES WASN'T SURPRISED FOR A VERY BASIC REASON THE RIGHTS ISSUE WAS PRICED AT 44 US CENTS A SHARE WHILE THE STOCK IS TRADING ON THE SHANGHAI EXCHANGE AT ABOUT 34 CENTS THE COMPANY ANNOUNCED A 7FOR10 RIGHTS ISSUE IN MARCH BUT WAS DELAYED AS A RESULT OF OVERSEAS CRITICISM OF THE EXECUTION OF THE RIGHTS ISSUE IT INITIALLY ATTEMPTED TO ARRANGE A RIGHTS ISSUE LATE LAST YEAR BUT THAT WAS CALLED OFF BECAUSE OF WEAK SHARE PRICE ON THE B SHARE MARKET THE B SHARES ARE RESERVED FOR FOREIGN INVESTORS 9309030140 930903 JACOBS ENGINEERING ACQUISITION PASADENA CALIF JACOBS ENGINEERING GROUP INC SAID IT ACQUIRED THE ENGINEERING AND CONSTRUCTION OPERATIONS OF WOLDER ENGINEERS & CONSTRUCTORS BASED IN LONG BEACH CALIF TERMS WEREN'T DISCLOSED JACOBS AN ENGINEERING DESIGN ENVIRONMENTAL AND HAZARDOUS WASTE MANAGEMENT AND CONSTRUCTION COMPANY SAID WOLDER HANDLED PROJECTS WITH A TOTAL VALUE OF 250 MILLION IN 1992 9309030139 930903 MUTUAL FUNDS MANAGERS FIND A FUND TO BEAT CASH BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT THE CASH IS TRASH FUND SOME INSTITUTIONAL MONEY MANAGERS HAVE SEIZED ON ASM FUND A SMALL BUT GROWING STOCK MUTUAL FUND AS AN ALTERNATIVE TO HOLDING CASH IN THEIR PORTFOLIOS THE MONEY MANAGERS ARE TERRIFIED THAT HOLDING EVEN SMALL AMOUNTS OF CASH WILL CAUSE THEM TO LAG BEHIND A STOCK MARKET THAT LATELY IS SETTING RECORDS ALMOST DAILY ASM TRIES TO MIMIC THE PERFORMANCE OF THE DOW JONES INDUSTRIAL AVERAGE BY BUYING THE 30 STOCKS IN IT WITH TREASURY BILLS YIELDING ONLY 3 THESE FUND MANAGERS WORRY THAT HAVING EVEN A SMALL AMOUNT OF CASH ON HAND AFTER SELLING A STOCK FOR INSTANCE WILL HURT THEIR PERFORMANCE AND CAUSE THEM TO LOSE CLIENTS THE ASM FUND IS A GOOD SUBSTITUTE FOR EXCESS CASH WHILE LOOKING FOR STOCKS TO BUY SAYS ROBERT S MEEDER SR CHIEF EXECUTIVE OF MONEY MANAGER R MEEDER & ASSOCIATES IN DUBLIN OHIO IT'S A SIGN OF THE BUYERS' STAMPEDE INTO STOCKS THAT SOME MONEY MANAGERS ARE AFRAID OF LEAVING EVEN A SMALL PORTION OF THEIR ASSETS TEMPORARILY IN LOWYIELDING MONEYMARKET FUNDS SOME PEOPLE SAY THAT ASM FUND'S POPULARITY SUGGESTS THE MARKET IS OVERHEATED ONE REASON ASSET MANAGERS HAVE CASH TO PUT TO WORK IN ASM IS BECAUSE THEY CAN'T FIND CHEAP STOCKS TO PURCHASE ASM NOW HAS ASSETS OF ABOUT 30 MILLION UP CONSIDERABLY FROM THE 36 MILLION IT HELD AT THE END OF 1992 BUT THOSE NUMBERS DON'T TELL THE WHOLE STORY SINCE MONEY MANAGERS TYPICALLY PARK THEIR MONEY IN THE FUND FOR ONLY A FEW DAYS OR WEEKS AT A TIME BEFORE REDEEMING IT TO BUY SECURITIES THEY USUALLY HOLD LONGER IN THE PAST TWO MONTHS ACCORDING TO ASM PORTFOLIO MANAGER STEVEN ADLER MORE THAN 100 MILLION HAS FLOWED INTO THE FUND ALTHOUGH A SIMILAR AMOUNT HAS FLOWED OUT AGAIN AS OTHER MANAGERS RECLAIMED THEIR CASH DAVID POLEN CHIEF EXECUTIVE OF POLEN CAPITAL MANAGEMENT CORP SAYS THAT AFTER HIS INVESTMENT MANAGEMENT FIRM SELLS STOCK IT PUTS THE CASH INTO ASM UNTIL I GET MY NEXT GREAT IDEA FOR A STOCK TO BUY THE CASH COULD STAY IN ASM FOR A DAY OR FOR SIX MONTHS HE SAYS OTHERWISE HE SAYS YOU'VE REALLY BEEN PENALIZED BY HAVING THAT CASH POSITION THE FUND WASN'T DESIGNED AS AN INSTITUTIONAL INVESTMENT VEHICLE IT TAKES INITIAL INVESTMENTS AS SMALL AS 1000 MR ADLER SAYS HE GOT THE IDEA OF MARKETING IT TO MONEY MANAGERS AS A CASH SUBSTITUTE ONLY WHEN HE FOUND THAT IT WAS ALREADY BEING USED THAT WAY THERE ARE OTHER LARGER STOCKINDEX MUTUAL FUNDS BESIDES ASM WHICH WAS BEGUN BY MR ADLER AN ACTUARY IN TAMPA FLA IN 1991 MR ADLER IS THE PRESIDENT OF THE FUND'S ADVISER VECTOR INDEX ADVISORS INC ALSO IN TAMPA SOME OF THOSE LARGER STOCKINDEX FUNDS SUCH AS THOSE FROM FIDELITY INVESTMENTS AND VANGUARD GROUP CARRY MUCH LOWER EXPENSE RATIOS THAN ASM WHICH COSTS A RELATIVELY STEEP 75 CENTS TO OPERATE FOR EACH 100 IN ASSETS BUT FIDELITY AND VANGUARD DISCOURAGE INVESTORS FROM SWITCHING IN AND OUT OF THEIR INDEX FUNDS LARGE INSTITUTIONAL INVESTORS OFTEN USE FUTURES TO PUT THEIR CASH TO WORK IN THE STOCK MARKET BUT SOMETIMES CLIENTS DON'T WANT THEIR MONEY IN FUTURES OR OPTIONS AND FOR SMALL MONEY MANAGERS FUTURES CAN BE COMPLICATED TOOLS THERE AREN'T ANY FUTURES OR OPTIONS ON THE INDUSTRIAL AVERAGE BECAUSE DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL AND OF THE DOW JONES AVERAGES DOESN'T ALLOW THEM TO BE CREATED MONEY MANAGERS SAY THAT THEY AREN'T WORRIED ABOUT ALL ASM'S INVESTORS HEADING TO THE EXITS AT ONCE AND DRIVING DOWN THE PRICE OF THE STOCKS IN THE INDEX THE COMPANIES IN THE INDEX ARE SO LARGE THEY EXPLAIN THAT CONCENTRATED SELLING BY ASM WOULDN'T DISTORT THE STOCKS' PRICES NOT EVERYBODY LIKES THIS CASHPARKING TACTIC HOWEVER WHEN THE DOW JONES INDUSTRIAL AVERAGE IS REGARDED AS A CASH EQUIVALENT SAYS JAMES GRANT EDITOR OF GRANT'S INTEREST RATE OBSERVER WE ARE REMINDED THE HOUR IS LATE IN THE BULL MARKET 9309030138 930903 CHILDSAFETY WARNING SET FOR AUTOS WITH AIR BAGS WASHINGTON FEDERAL SAFETY OFFICIALS WILL REQUIRE THAT CARS CARRY A WARNING ABOUT CERTAIN CHILDSAFETY SEATS WHEN A MANDATORY AIRBAG RULE TAKES EFFECT IN FIVE YEARS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ACKNOWLEDGING CONCERNS THAT AIR BAGS CAN INJURE CHILDREN RIDING IN THE FRONT SEATS OF CARS WANTS A WARNING LABEL ON SUN VISORS TELLING PARENTS NOT TO PUT REARFACING CHILD SEATS ON THE FRONT SEAT THE WARNING ALSO WILL ADVISE PEOPLE NOT TO SIT OR LEAN UNNECESSARILY CLOSE TO THE AIR BAG AS EXPECTED THE AGENCY ADOPTED A RULE YESTERDAY REQUIRING AIR BAGS FOR THE DRIVER AND FRONT PASSENGER IN ALL CARS BY 1998 AND ALL TRUCKS BY 1999 AT LEAST 95 OF A MANUFACTURER'S CAR FLEET WOULD HAVE TO HAVE PASSENGER AND DRIVER AIR BAGS BY SEPTEMBER 1996 THE RULE WAS REQUIRED BY A 1991 ACT OF CONGRESS 9309030136 930903 WHO'S NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO WILLIAM J KRISS 49 YEARS OLD FORMER PRESIDENT OF THIS DIVERSIFIED CONSUMER INDUSTRIAL TECHNICAL AND SERVICE COMPANY'S SAFWAY STEEL PRODUCTS UNIT WAS NAMED PRESIDENT OF THE CONCERN'S FIGGIE PACKAGING SYSTEMS UNIT HE SUCCEEDS RICHARD BARKLEY WHO RECENTLY RESIGNED TO BECOME PRESIDENT OF CORNELIUS INC MINNEAPOLIS MARC J WILSON 43 FORMER DIRECTOR OF BRANCH OPERATIONS FOR SAFWAY SUCCEEDS MR KRISS RICHARD A SOLON 40 PRESIDENT OF FIGGIE'S SNORKELECONOMY UNIT WILL MANAGE THE COMPANY'S ESSICKMAYCO UNIT AND THE OPERATIONS OF THE FIGGIE MANUFACTURING CENTER CHARLESTON SC THOSE RESPONSIBILITIES WERE HELD BY MR KRISS 9309030135 930903 ECONOMY FACTORY ORDERS PLUNGED 21 IN JULY HURT BY 37 DECLINE IN AIRCRAFT SECTOR BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS PLACED TO US FACTORIES TOOK A DIVE IN JULY RAISING MORE CONCERNS ABOUT THE STRENGTH OF THE MANUFACTURING SECTOR THE COMMERCE DEPARTMENT SAID FACTORY ORDERS PLUNGED 21 IN JULY THE STEEPEST DECLINE SINCE DECEMBER 1991 ORDERS FOR BOTH DURABLE AND NONDURABLE GOODS DECLINED ORDERS ROSE 29 IN JUNE IN LINE WITH AN EARLIER REPORT ON ORDERS FOR DURABLE GOODS THE JULY DECLINE WAS CENTERED IN THE TRANSPORTATION EQUIPMENT SECTOR PARTICULARLY AIRCRAFT AND PARTS WHICH TUMBLED 37 EXCLUDING AIRCRAFT AND PARTS ORDERS FOR NONDEFENSE CAPITAL GOODS ROSE 05 ALTOGETHER ORDERS FOR DURABLE GOODS THOSE INTENDED TO LAST MORE THAN THREE YEARS FELL 31 IN JULY FOLLOWING A 43 INCREASE IN JUNE THE EARLIER ESTIMATE HAD PUT THE JULY DECLINE AT 38 FOR NONDURABLE GOODS ORDERS DECLINED 1 IN JULY AFTER RISING 14 IN JUNE SOME ANALYSTS WERE ENCOURAGED THAT ORDERS WERE MUCH STRONGER WHEN AIRCRAFT WERE EXCLUDED THAT'S BECAUSE IT SUGGESTS THAT OUTSIDE THE AIRCRAFT INDUSTRY WHICH IS UNDERGOING STRUCTURAL CHANGES THE MANUFACTURING SECTOR MAY BE GAINING STRENGTH IN FACT WHILE FACTORY ORDERS HAVE FALLEN IN FOUR OF THE PAST FIVE MONTHS WHEN AIRCRAFT AND PARTS ARE EXCLUDED THEY HAVE RISEN IN FOUR OF THE PAST FIVE MONTHS THE DATA SUGGEST THAT THE MANUFACTURING ACTIVITY MAY BE BEGINNING TO PICK UP SLIGHTLY SAID MARILYN SCHAJA MONEYMARKET ECONOMIST FOR DONALDSON LUFKIN & JENRETTE SECURITIES CORP HOWEVER THE EMPLOYMENT OUTLOOK IN THE MANUFACTURING SECTOR STILL LOOKS PRETTY DIM UNFILLED ORDERS FELL AGAIN IN JU LY INDICATING THAT FACTORIES ARE HAVING NO TROUBLE KEEPING UP WITH DEMAND WITH THEIR EXISTING WORK FORCE A SEPARATE REPORT BY THE LABOR DEPARTMENT GAVE A SLIGHTLY BRIGHTER PICTURE OF THE JOB SITUATION HOWEVER THE DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 7000 LAST WEEK TO 324000 MORE IMPORTANT THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A BETTER INDICATOR OF LABOR MARKET CONDITIONS CONTINUED AT A FOURYEAR LOW FALLING TO 327500 FROM 331250 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9309030134 930903 WHO'S NEWS IACOCCA SEVERS TIES TO CHRYSLER CORP AS HE QUITS BOARD BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH FORMER CHRYSLER CORP CHAIRMAN LEE IACOCCA RESIGNED AS A CHRYSLER DIRECTOR SEVERING MOST OF HIS TIES WITH THE AUTO MAKER THAT MADE HIM RICH AND FAMOUS CHRYSLER IS IN GOOD HANDS NOW AND HAS AN OUTSTANDING FUTURE MR IACOCCA SAID IN A STATEMENT NOW THAT A YOUNGER GENERATION IS TAKING OVER MR IACOCCA SAID HE IS EAGER TO START DOING SOMETHING DIFFERENT WITH HIS LIFE IT'S NOT FASHIONABLE FOR FORMER CEOS TO SERVE ON THE BOARDS OF THEIR COMPANIES ANYMORE HE ADDED YESTERDAY'S ANNOUNCEMENT MARKS A SURPRISING TURNAROUND FOR THE 68YEAROLD MR IACOCCA WHO PRIOR TO HIS RETIREMENT IN DECEMBER AGGRESSIVELY PURSUED A ROLE THAT WOULD AFFORD A HIGHLY VISIBLE PRESENCE AT THE COMPANY BEYOND HIS RETIREMENT UNDER THE TWOYEAR AGREEMENT MR IACOCCA WAS TO SERVE AS CHAIRMAN OF THE POWERFUL EXECUTIVE COMMITTEE FOLLOWING HIS ELECTION TO THE BOARD BUT NOW MR IACOCCA APPEARS TO BE CLOSING THE CHRYSLER CHAPTER IN HIS CAREER LAST MONTH HE INDICATED IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT HE INTENDED TO SELL 41 OF THE 29 MILLION CHRYSLER SHARES HE OWNS ON OR AROUND AUG 2 MR IACOCCA HASN'T ANNOUNCED ANY DECISIONS ABOUT FUTURE PLANS HE'S TALKING TO A LOT OF PEOPLE ABOUT DIFFERENT THINGS BUT NOTHING FULLTIME A CHRYSLER SPOKESMAN SAID HE HASN'T ACCEPTED ANYTHING YET MR IACOCCA WILL REMAIN AS A CONSULTANT TO CHRYSLER THROUGH 1994 CHRYSLER CHAIRMAN ROBERT J EATON SUCCEEDED MR IACOCCA AS CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE MR IACOCCA LEAVES A VACANT SEAT ON THE BOARD REDUCING THE BOARD SIZE TO 13 THE CHRYSLER SPOKESMAN SAID THE FORMER CHAIRMAN IS IN GOOD HEALTH AND IS TRAVELING OUT OF THE COUNTRY AFTER SPENDING MOST OF THE SUMMER IN ASPEN COLO HE HAS ATTENDED ALL THE BOARD MEETINGS AND SEES THAT THE TRANSITION IS GOING PRETTY WELL THE SPOKESMAN SAID AFTER BEING CHAIRMAN FOR 13 YEARS WHAT ELSE IS THERE FOR HIM TO DO 9309030133 930903 POLITICS & POLICY REP DEAL UNDECIDED ON NAFTA FINDS PEROT HAS SOWN SEEDS OF DISCONTENT BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO FREE TRADE WITH MEXICO FRESHMAN DEMOCRATIC REP NATHAN DEAL OF GEORGIA IS ON THE FENCE BUT MANY OF HIS CONSTITUENTS AREN'T AT A RECENT TOWN HALL MEETING IN CATOOSA COUNTY MR DEAL TRIES TO TALK ABOUT THE RECENT BUDGET AGREEMENT BUT WHEN THE FLOOR IS OPENED FOR QUESTIONS THE SECOND ONE IS A ROSS PEROTINSPIRED QUESTION ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT HAVE YOU READ NAFTA AND ARE YOU FOR IT NO I HAVEN'T READ IT ALL I'M UNDECIDED SAYS REP DEAL MR DEAL IS ONE OF DOZENS OF UNDECIDED DEMOCRATS WHOM PRESIDENT CLINTON MUST COUNT ON TO GET THE NAFTA AGREEMENT THROUGH CONGRESS HIS HOST FOR THE EVENING IS WESLEY SMITH PRESIDENT OF NORTHWEST GEORGIA BANK AND A NAFTA SUPPORTER I THINK IT WILL HELP THE COUNTRY MR SMITH SAYS BUT ALSO IN THE AUDIENCE IS JIM BRADY A PEROT SUPPORTER WHO HAS COME EQUIPPED WITH A TWOVOLUME COPY OF THE 1000PLUSPAGE AGREEMENT THIS IS THE BIGGEST ROBBERY OF THE AMERICAN PEOPLE SAYS MR BRADY IN CATOOSA COUNTY HOME TO A MIX OF BUSINESSES RANGING FROM HIGHTECH TO TEXTILES NAFTA BREAKS DOWN ALONG CLASS LINES AT THIS EVENT SUPPORTERS WEAR NICE SUITS AND WORK FOR BANKS AND MULTINATIONAL COMPANIES OPPONENTS ARE FROM SMALLER BUSINESSES OR WEAR BLUE COLLARS OR OVERALLS NAFTA WAS DESIGNED SO ALL THE ELITES CAN MAKE MONEY EXPLAINS MR BRADY THEY COULDN'T CARE LESS ABOUT THE WORKING GUY FOR MR DEAL AND MANY OTHER DEMOCRATS LIKE HIM NAFTA REPRESENTS A HUGE HEADACHE MR DEAL WOULD LIKE TO SUPPORT HIS PRESIDENT AND IS SYMPATHETIC TO THE AIMS OF NAFTA BUT HE'S ALSO ALREADY RECEIVED 350 NAFTA NO CARDS GENERATED IN PART BY ROSS PEROT'S TELEVISION APPEARANCES AND HE CAN SCARCELY AFFORD TO LEAVE HIS CONSTITUENTS WITH THE IMPRESSION THAT HE CARES MORE ABOUT THE ELITES THAN THE AVERAGE CATOOSA COUNTY RESIDENT UNDERSCORING HIS PREDICAMENT THIS NIGHT IS THE PRESENCE OF JUDY GRAMMER A FORMER GEORGIA GOP CANDIDATE FOR CONGRESS WHO OWNS A SMALL BUSINESS IN NEARBY CHATTANOOGA TENN AND HAS COME TO THE MEETING TO LET REP DEAL KNOW SHE PLANS TO RUN AGAINST HIM NEXT YEAR AT THIS POINT I DON'T THINK I COULD SUPPORT IT SHE SAYS OF NAFTA MR DEAL ATTEMPTS TO FRAME NAFTA AS A MEANS OF DISCOURAGING IMMIGRATION A HOT ISSUE IN THIS NORTH GEORGIA DISTRICT HE TELLS OF VISITING A POULTRY PROCESSING PLANT IN WHICH HALF OF THE WORK FORCE WAS HISPANIC OR ASIAN AND QUOTES MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI SAYING DON'T RATIFY IT NAFTA AND WE'LL SEND YOU OUR PEOPLE RATIFY IT AND WE'LL BUY OUR PRODUCTS FROM YOU BUT SOME OF HIS CONSTITUENTS WORRY NAFTA MIGHT MEAN MORE NOT FEWER IMMIGRANTS I HAVEN'T REALLY GIVEN IT THAT MUCH THOUGHT TO TELL YOU THE TRUTH BUT I'M AGAINST ALL THEM MEXICANS COMING IN HERE AND TAKING ALL OUR JOBS SAYS HOYLE BEAVERS HEAD OF MAINTENANCE AT CAMPBELL PRINTING IN CHATSWORTH GA WITH MR PEROT AT THE HELM THE ANTINAFTA FORCES CLEARLY HAVE THE EARLY LEAD IN SWAYING MR DEAL'S CONSTITUENTS AND AS HIS COMMENTS AT THE CATOOSA COUNTY MEETING DEMONSTRATE THERE IS NO EASY REJOINDER TO THE PEROTISTAS' FEAR OF A GIANT SUCKING SOUND AS JOBS MOVE SOUTH BUT STILL MANY ARE WILLING TO GIVE MR DEAL THE BENEFIT OF THE DOUBT I'M DEFINITELY AGAINST NAFTA SAID WILLIAM KENNEDY BUT IF REP DEAL VOTES FOR NAFTA AND HE CAN SHOW ME THAT WHAT HE DID WAS FOR MY BEST INTEREST I'LL GO ALONG WITH HIM 100 9309030132 930903 LIECHTENSTEIN CHARTS A TRADE COURSE DIVERGENT FROM LONGTIME HELPMATE'S BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL SEVENTY YEARS AGO DIMINUTIVE LIECHTENSTEIN HITCHED ITS TRADEPOLICY WAGON TO ITS NEXTDOOR NEIGHBOR SWITZERLAND SINCE THE SIGNING OF A 1923 CUSTOMSUNION TREATY THE TWO HAVE DRAWN EVEN CLOSER TODAY THE SWISS POSTAL SYSTEM TAKES CARE OF LIECHTENSTEIN'S MAIL THE SWISS FRANC IS THE OFFICIAL CURRENCY SWITZERLAND'S NATIONAL BANK SETS MONETARY POLICY SWISSBASED BUSES EVEN SERVE RURAL VILLAGES IN THE LAENDLI OR LITTLE COUNTRY AS THE SWISS KNOW IT BUT IN DECEMBER LIECHTENSTEIN'S 29400 INHABITANTS SPOKE WITH AN INDEPENDENT VOICE JUST ONE WEEK AFTER SWITZERLAND'S VOTERS SAID NO TO MEMBERSHIP IN AN 18NATION EUROPEAN ECONOMIC AREA LIECHTENSTEIN'S SAID YES WE WANT BOTH AN OPEN BORDER WITH SWITZERLAND AND MEMBERSHIP IN THE EEA SAYS THE COUNTRY'S PRIME MINISTER MARKUS BUECHEL THAT DECISION HOWEVER SETS UP WHAT MR BUECHEL CALLS A HIMALAYAN TASK FOR THE TINY 61SQUAREMILE COUNTRY IT MUST NOW RECONCILE AN EEA MEMBERSHIP WITH THE RULES OF ITS LONGSTANDING CUSTOMS UNION UNDER THE 1923 TREATY SWITZERLAND IS IN CHARGE OF BOTH COUNTRIES' TRADE RELATIONS WITH THE OUTSIDE WORLD AND LIECHTENSTEIN ALONE CAN'T SET INTERNATIONAL ECONOMIC PACTS WITHOUT SWISS CONSENT BUT AS TODAY'S EUROPE RETHINKS ITS TRADE POLICIES IN LARGE PART SPURRED BY TWO ORGANIZATIONS THE EUROPEAN COMMUNITY AND THE EUROPEAN FREE TRADE ASSOCIATION SWITZERLAND AND LIECHTENSTEIN SEE DIFFERENT ROLES FOR THEMSELVES THE EUROPEAN ECONOMIC AREA THAT WAS THE SUBJECT OF DECEMBER'S REFERENDUMS WOULD CREATE A GIANT FREETRADE ZONE BY LINKING THE EC'S 12 MEMBERS WITH MOST OF THE EFTA'S SEVEN MEMBERS SWITZERLAND ANE LIECHTENSTEIN ARE EFTA MEMBERS THE PACT WHICH ESSENTIALLY EXTENDS EC RULES TO OTHER COUNTRIES GOES INTO EFFECT ONCE ALL EC MEMBER STATES RATIFY IT SPAIN FRANCE AND THE UNITED KINGDOM MUST STILL DO SO BUT THEIR APPROVAL IS EXPECTED LATER THIS YEAR LIECHTENSTEIN WAS GIVEN TIME TO RESOLVE ITS LEGAL PROBLEMS BUT REACHING A COMPROMISE THAT SATISFIES BOTH EEA RULES AND SWITZERLAND WILL REQUIRE SOPHISTICATED MANEUVERING WE'RE DOING EVERYTHING WE CAN TO MAKE IT POSSIBLE FOR LIECHTENSTEIN TO JOIN THE EEA IN A REASONABLE TIME SPAN SAYS JOSEF OSWALD OF THE SWISS FOREIGN MINISTRY BUT ANY SOLUTION MUST BE CREDIBLE FOR INSTANCE PROBLEMS COULD ARISE WITH SOME FOOD ITEMS OFFICIALS SAY PRESENTLY SWISS CONSUMERS PAY MORE THAN EC CONSUMERS FOR MANY PRODUCTS DUE TO SWISS AGRICULTURAL SUBSIDIES IF LIECHTENSTEIN LIVES UP TO THE LETTER OF THE EEA TREATY CERTAIN ITEMS SUCH AS IRISH WHISKEY SPANISH ORANGES AND SOUTHERN EUROPEAN OLIVES COULD BE IMPORTED CHEAPLY INTO LIECHTENSTEIN AND WITH NO CUSTOMS OFFICERS ON THE SWISSLIECHTENSTEIN BORDER WHAT'S TO STOP THEM FROM CROSSING INTO SWITZERLAND WE DON'T WANT TO BECOME THE SHOPPING CENTER OF SWITZERLAND SAYS MR BUECHEL OFFICIALS FROM THE EC FOR THEIR PART MIRROR THE CONCERN THEY POINT OUT THAT THEY DON'T WANT LIECHTENSTEIN TO BE USED AS A BACK DOOR FOR MOVEMENT OF SWISS PRODUCTS INTO THE EC MARKET ALTHOUGH SWITZERLAND HAS HAD A FREETRADE PACT WITH THE EC SINCE 1972 THERE ARE STILL SOME TECHNICAL BARRIERS IN PLACE THAT RAISE THE COST OF SWISS PRODUCTS IN THE EC THE LIECHTENSTEIN GOVERNMENT HAS A 15MEMBER GROUP STUDYING WAYS TO RESOLVE POTENTIAL LEGAL SNAGS THE LIKELY OUTCOME OFFICIALS SAY WOULD REQUIRE LIECHTENSTEIN TO SET UP INTERNAL TRADEMONITORING CONTROLS TO PREVENT ABUSE OF ITS CUSTOMS UNION WITH SWITZERLAND A YEAR AGO FEW THOUGHT THE COZY RELATIONSHIP COULD BE RATTLED IT WAS GENERALLY ASSUMED THAT LIECHTENSTEIN'S MIDDECEMBER VOTE WOULD MERELY ECHO THE WEEKEARLIER SWISS REJECTION BUT LIECHTENSTEIN'S HEAD OF STATE PRINCE HANSADAM II URGED HIS SUBJECTS IN A TELEVISED SPEECH TO ENDORSE THE EEA AND THAT NUDGE IS CREDITED WITH TURNING THE TIDE IN FAVOR OF THE PACT SINCE REPLACING HIS FATHER FRANZ JOSEF II AS HEAD OF STATE IN 1989 PRINCE HANSADAM HAS PURSUED A MORE INDEPENDENT FOREIGN POLICY HE LED LIECHTENSTEIN INTO THE UNITED NATIONS IN 1990 THOUGH SWITZERLAND ISN'T A MEMBER LIECHTENSTEIN JOINED THE EFTA IN 1991 THE PRINCE BELIEVES THAT EVEN A MINISTATE SUCH AS LIECHTENSTEIN HAS A ROLE TO PLAY ON THE WORLD STAGE IN PUSHING FOR EEA MEMBERSHIP HE SUGGESTED THAT ISOLATION FROM THE REST OF EUROPE EVEN WITH SWITZERLAND AS A PARTNER WOULD BE ECONOMICALLY DAMAGING AND WOULD PUT LIECHTENSTEIN'S INDUSTRIAL EXPORTS AT A DISADVANTAGE LIECHTENSTEIN IS FAMOUS AS A TAX HAVEN AND BANKING CENTER BUT ACTUALLY HAS A PROSPEROUS TRADE IN INDUSTRIES AS DIVERSE AS MACHINERY APPLIANCES CHEMICALS PHARMACEUTICALS AND FALSE TEETH A SIMILAR ARGUMENT WAS USED IN SWITZERLAND BY THOSE WHO WISHED THAT COUNTRY TO JOIN THE EEA A GROUP THAT INCLUDED THE GOVERNMENT ITSELF HOWEVER POLITICAL SCIENTISTS SAY THE SWISS WEREN'T QUITE READY TO GIVE UP AN INDEPENDENCE THAT HAS SERVED THEIR COUNTRY WELL THE OPPOSITION TO THE TRADE PACT IN SWITZERLAND PLAYED ON FEARS OF JOB LOSSES OVERFOREIGNIZATION AND A WEAKENED REPUTATION OF NEUTRALITY NEARLY 50 OF THE SWISS VOTED TO JOIN BUT MAJORITY SUPPORT CAME IN ONLY A FEW CANTONS IN SWITZERLAND'S SYSTEM OF DIRECT DEMOCRACY WHERE ALMOST ANY ISSUE CAN FACE A REFERENDUM A MAJORITY OF BOTH WAS REQUIRED 9309030131 930903 BUSINESS BRIEF RECKITT & COLMAN PLC INTERIM PRETAX PROFIT ROSE 87 AS SALES INCREASED 9 UK HOUSEHOLD GOODS CONCERN RECKITT & COLMAN PLC REPORTED AN 87 RISE IN ITS INTERIM PRETAX PROFIT TO 1532 MILLION 2304 MILLION AND SAID ITS EARNINGS WERE SIGNIFICANTLY INFLUENCED BY EXCHANGE RATE MOVEMENTS SALES FROM CONTINUING OPERATIONS FOR THE SIXMONTH PERIOD ROSE 14 TO 107 BILLION AT JUNE 30 TOTAL SALES ROSE 9 TO 107 BILLION RECKITT & COLMAN'S EARNINGS ARE FAR HIGHER THAN ANALYSTS HAD PREDICTED MARKET FORECASTS HAD PEGGED THE INTERIM PRETAX PROFIT AT BETWEEN 147 MILLION AND 150 MILLION EARNINGS FOR THE YEARAGO PERIOD WERE RESTATED TO COMPLY WITH NEW ACCOUNTING STANDARDS 9309030130 930903 YOUR MONEY MATTERS WEEKEND REPORT HELPING THE JOBLESS MAP A FINANCIAL STRATEGY BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL THE LONG LABOR DAY WEEKEND IS TRADITIONALLY A TIME TO RELAX AND SAVOR THE JOYS OF SUMMER ONE LAST TIME BEFORE AGAIN BUCKLING DOWN TO THE RIGORS OF THE WORKPLACE BUT FOR PEOPLE CAUGHT IN THE LATEST ROUND OF CORPORATE RESTRUCTURINGS THIS LABOR DAY WEEKEND IS A TIME OF WORRY HOW DO THEY DEVELOP A NEW FINANCIAL GAME PLAN TO SURVIVE THE SHOCK AND BOUNCE BACK TO A SECURE FUTURE THOUSANDS OF PROFESSIONALS AND OTHER EMPLOYEES ARE EITHER OUT OF WORK OR SOON WILL BE AS COMPANY AFTER COMPANY CUTS BACK WITH LAYOFFS FORCED RETIREMENTS AND EARLYRETIREMENT OFFERS EASTMAN KODAK CONTINENTAL AIRLINES INTERNATIONAL BUSINESS MACHINES PROCTER & GAMBLE AND APPLE COMPUTER ARE AMONG THE BIGNAME EMPLOYERS SENDING OUT PINK SLIPS THIS SUMMER OR ANNOUNCING PLANS TO DO SO MANY OF THE NEWLY UNEMPLOYED MIDDLE MANAGERS OR LOWERLEVEL EXECUTIVES ARE IN THEIR 50S PEOPLE WHO HAVE BEEN SPENDING THEIR MONEY TO SEND THEIR CHILDREN TO COLLEGE AND HELPING THEIR OWN ELDERLY PARENTS INSTEAD OF SAVING SAYS LEE ROSENBERG COOWNER OF ARS FINANCIAL SERVICES A RETIREMENTPLANNING FIRM IN VALLEY STREAM NY THEY HAVE ANOTHER 10 WORKING YEARS LEFT BUT THEY FIND THAT THEIR FEET ARE CUT OUT FROM UNDER THEM HE SAYS YOUNGER VICTIMS OF CORPORATE DOWNSIZING PEOPLE IN THEIR 30S AND 40S MAY FIND IT EASIER THAN THEIR OLDER COLLEAGUES TO GET NEW JOBS BUT EVEN SOME OF THEM MAY HAVE TO COPE FOR SIX MONTHS TO A YEAR OR MORE WITHOUT WORK EMPLOYMENT SPECIALISTS SAY MOST PEOPLE MUST FIND OTHER EMPLOYMENT BUT THEY AREN'T AWARE HOW DIFFICULT IT IS TO FIND A COMPARABLE JOB SAYS KAREN W SPERO CHAIRMAN OF SPERO FINANCIAL SERVICES A FINANCIALPLANNING CONCERN IN CLEVELAND IN THE MEANTIME BOTH YOUNGER AND OLDER PEOPLE HAVE GOT TO COME UP WITH A SURVIVAL BUDGET AND SOME WAYS TO GET CASH THEY ALSO HAVE TO GRAPPLE WITH TOUGH DECISIONS ON HOW TO TAKE THEIR SEVERANCE PAY HOW TO GET MEDICAL AND LIFE INSURANCE AND WHAT TO DO WITH THEIR RETIREMENT SAVINGS AND PENSION PLANS TRIMMING DEBT THE FIRST STEP IS TO CUT NONESSENTIALS AND WHITTLE DOWN CREDIT CARD AND OTHER HIGHINTEREST DEBT SAYS STUART KESSLER SENIOR TAX PARTNER OF ACCOUNTANTS GOLDSTEIN GOLUB & KESSLER IN NEW YORK BUT DON'T CUT VARIABLE EXPENSES SO MUCH THAT YOU CAN'T ENJOY ANY OF THE NICETIES OF LIFE SUCH AS GOING OUT TO DINNER OCCASIONALLY MOST PEOPLE ARE IN A STATE OF SHOCK SAYS LEWIS J ALTFEST PRESIDENT OF A NEW YORK FINANCIALPLANNING FIRM BEARING HIS NAME BUT THEY SHOULD CONTINUE THEIR LIFESTYLE SO THEY CAN FEEL GOOD ABOUT THEMSELVES AND THEY'LL BE ATTRACTIVE IN THE MARKETPLACE WHEN THEY SEARCH FOR A NEW JOB THAT TENNIS OR GOLF CLUB MEMBERSHIP CAN BE A HELPFUL SOURCE OF CONTACTS HE ADDS DON'T WAIT TO APPLY FOR UNEMPLOYMENT COMPENSATION TOO MANY PEOPLE FEEL ASHAMED OR ARE RELUCTANT TO APPLY FOR PAYMENTS TO WHICH THEY ARE ENTITLED SAYS JEFF J SACCACIO DIRECTOR OF PERSONAL FINANCIAL SERVICES FOR ACCOUNTANTS COOPERS & LYBRAND IN LOS ANGELES YET THIS MONEY CAN PLAY AN IMPORTANT ROLE IN KEEPING THEM AFLOAT UNTIL THEY GET A NEW JOB DEPENDING ON YOUR SITUATION YOU MAY BE ELIGIBLE FOR UNEMPLOYMENT COMPENSATION EVEN IF YOU GET A SEVERANCE PAYMENT EVELYN HOUGH 49 YEARS OLD OF KENT WASH A LAIDOFF BOEING AEROSPACE PRODUCTION EMPLOYEE SAYS SHE WAS ABLE TO USE HER UNEMPLOYMENT BENEFITS TO PAY OFF CREDIT CARDS AND CAR AND TRUCK PAYMENTS WHILE HER HUSBAND CONTINUED TO WORK MOST COMPANIES GIVE EMPLOYEES SEVERANCE PAYMENTS EQUAL TO ONE WEEK OF PAY FOR EACH YEAR OF SERVICE WITH CERTAIN LIMITATIONS AND MOST PEOPLE END UP GETTING THEIR SEVERANCE IN ONE LUMP PAYMENT SAYS MIKE HAYES A PARTNER WITH HEWITT ASSOCIATES A LINCOLNSHIRE ILL EMPLOYEE BENEFITS CONSULTING COMPANY BUT IT MAY BE TO YOUR ADVANTAGE NOT TO TAKE THE SEVERANCE PAYMENT ALL AT ONCE YOUR REGULAR SALARY PLUS A LUMPSUM SEVERANCE PAYMENT COULD MEAN A HUGE TAX BITE ESPECIALLY WITH THE NEW HIGHER FEDERAL TAX RATES AND HEFTY STATE INCOME TAXES SOME COMPANIES ARE FLEXIBLE ENOUGH TO PAY OUT THE MONEY AS SALARY CONTINUATION OVER A YEAR OR TWO IT'S NOT ALWAYS POSSIBLE BUT I TRY TO DELAY AND SPREAD OUT THE PAYMENTS INTO THE NEXT TAX YEAR TO TAKE ADVANTAGE OF A LOWER TAX RATE WHEN THE PERSON IS NO LONGER GETTING THE REGULAR SALARY SAYS DOUGLAS STIVES TAX PARTNER AT CURCHIN & CO A RED BANK NJ ACCOUNTING FIRM IT'S WORTH TALKING ABOUT WITH YOUR ACCOUNTANT AND YOUR EMPLOYEE BENEFITS DEPARTMENT WHILE YOU'RE NEGOTIATING GET YOUR OLD EMPLOYER TO CONTINUE YOUR MEDICAL INSURANCE MANY COMPANIES WILL CONTINUE TO PAY LAIDOFF EMPLOYEES' HEALTH COVERAGE FOR A LIMITED PERIOD AS A SEVERANCE BENEFIT IF YOU ARE BEING RETIRED EARLY SOME COMPANIES WILL CONTINUE YOUR MEDICAL INSURANCE UNTIL YOU BECOME ELIGIBLE FOR MEDICARE AT AGE 65 ONE OF THE BIGGEST MISTAKES PEOPLE MAKE IS TO LET THEIR MEDICAL COVERAGE LAPSE SAYS LEON LABRECQUE VICE PRESIDENT FOR EDUCATIONAL TECHNOLOGIES INC A TROY MICH RETIREMENTCONSULTING FIRM FEDERAL LAW STIPULATES THAT TERMINATED EMPLOYEES HAVE THE OPTION OF CONTINUING GROUP HEALTH COVERAGE FOR AT LEAST 18 MONTHS FOR THEMSELVES AND THEIR FAMILIES YOU'LL HAVE TO PAY THE FULL COST OF THE INSURANCE PLUS A 2 ADMINISTRATION FEE BUT IT WILL STILL BE CHEAPER THAN ANY SIMILAR INSURANCE YOU CAN BUY ON YOUR OWN ALSO BE VERY CAREFUL ABOUT THE MONEY IN YOUR COMPANY RETIREMENT PLAN FEDERAL LAW ON DISTRIBUTIONS FROM 401K OR OTHER COMPANYSPONSORED TAXDEFERRED SAVINGS PLANS REQUIRES EMPLOYERS TO WITHHOLD 20 FOR TAXES IF THE MONEY GOES DIRECTLY TO YOU INSTEAD OF BEING TRANSFERRED DIRECTLY INTO AN INDIVIDUAL RETIREMENT ACCOUNT OR A NEW EMPLOYER'S PLAN IN MANY CASES IT IS POSSIBLE TO SIMPLY LEAVE THE MONEY IN YOUR OLD EMPLOYER'S PLAN UNLESS YOU ARE CERTAIN YOU HAVE EXHAUSTED ALL OTHER ALTERNATIVES DON'T EVEN THINK ABOUT CASHING OUT YOUR RETIREMENT MONEY IF YOU ARE UNDER AGE 59 1/2 DISTRIBUTIONS FROM A 401K OR OTHER COMPANY PLANS ARE SUBJECT TO A 10 PENALTY IF YOU TAKE THEM BEFORE REACHING THAT AGE COUPLE THAT WITH REGULAR FEDERAL AND STATE INCOME TAXES ON THE DISTRIBUTIONS AND HALF OF YOUR RETIREMENT NEST EGG COULD EASILY BE GOBBLED UP BY TAXES SAYS MS SPERO THE CLEVELAND FINANCIAL PLANNER IT'S A BETTER IDEA TO USE SAVINGS SEVERANCE PAYMENTS AND UNEMPLOYMENT COMPENSATION TO LIVE ON BEFORE TAPPING THIS TAXDEFERRED MONEY SHE SAYS THIS IS ALSO A TIME TO TAKE A HARD LOOK AT YOUR PERSONAL TAXABLE INVESTMENTS IT MAY BE HELPFUL TO SELL SOME OF YOUR COMPANY STOCK GROWTH STOCKS OR GROWTH STOCK MUTUAL FUNDS IF YOU DON'T HAVE TO PAY TOO BIG A CAPITAL GAINS TAX THE MONEY CAN BE REINVESTED IN BONDS BOND FUNDS UTILITY STOCKS OR FUNDS OR BALANCED FUNDS TO PRODUCE A MONTHLY INCOME STREAM SAYS MR ROSENBERG THE NEW YORK FINANCIAL PLANNER THAT'S WHAT 58YEAROLD BARNEY FARRAGHER DID AS PART OF A STRATEGY TO PROVIDE MORE MONTHLY INCOME TO TIDE HIM OVER UNTIL SOCIAL SECURITY PAYMENTS KICK IN MR FARRAGHER OF MONROE CONN TOOK AN EARLYRETIREMENT BUYOUT AUG 1 FROM HIS JOB AS A SALES SUPERVISOR FOR SHELL OIL CO BUT DON'T RUSH OUT WITH YOUR SEVERANCE PAY AND OTHER SAVINGS TO BUY A SMALL BUSINESS WITHOUT STUDYING THE MARKET SAYS MS SPERO INSTEAD OF BUYING A VIDEO STORE FRANCHISE FOR EXAMPLE THE AVERAGE FORMER CORPORATE EMPLOYEE WOULD BE BETTER OFF WORKING THERE FOR A YEAR AT MINIMUM WAGE BEFORE SINKING HIS WHOLE SAVINGS INTO THE BUSINESS SHE SAYS BEWARE OF MAKING AGGRESSIVE INVESTMENT MOVES WITH YOUR SEVERANCE MONEY AND OTHER SAVINGS AFTER BEING LAID OFF OR TAKING EARLY RETIREMENT SOME PEOPLE THINK THEY HAVE TO MAKE UP FOR THE JOB LOSS BY IMMEDIATELY MAKING BIG STOCK OR OPTIONS INVESTMENTS TO RACK UP A LARGE SHORTTERM GAIN SAYS ROBERT BINGHAM A PARTNER WITH SAN FRANCISCO INVESTMENT ADVISORY FIRM BINGHAM OSBORN & SCARBOROUGH THAT'S A DANGEROUS AND ILLADVISED MOVE HE SAYS UNLESS YOU HAVE CASH RESERVES EQUAL TO ONE YEAR'S SALARY PUT YOUR SEVERANCE PAYMENT IN A MONEYMARKET FUND MR BINGHAM SAYS AFTER YOU GET A NEW JOB THEN IT'S TIME TO LOOK AT INVESTING YOUR SEVERANCE MONEY HE SAYS SEEK ADVICE QUICKLY BUT COMMIT FUNDS SLOWLY MR BINGHAM ADDS 9309030129 930903 FORMER OFFICIAL IN BNL CASE PLEADS GUILTY DROGOUL'S DECISION AVOIDS TRIAL IS LIKELY TO FUEL ALLEGATIONS OF COVERUP BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN ANOTHER TWIST IN THE 21 BILLION BANCA NAZIONALE DEL LAVORO FRAUD CASE CHRISTOPHER DROGOUL THE FORMER MANAGER OF THE ITALIAN BANK'S ATLANTA OFFICE AGREED TO PLEAD GUILTY TO THREE CRIMINAL CHARGES THE PLEA AGREEMENT WILL AVOID A TRIAL IN A COMPLEX CASE THAT ACCORDING TO CRITICS HAS BEEN MARKED BY COVERUPS BY GOVERNMENT AND BANKING OFFICIALS IN ROME AND WASHINGTON FROM THE BEGINNING MR DROGOUL HAS BEEN THE CENTRAL FIGURE IN THE CASE INVOLVING BNL'S ILLEGAL LOANS TO IRAQ WHICH MAY HAVE HELPED IRAQI DICTATOR SADDAM HUSSEIN BUILD HIS WAR MACHINE IN A 1991 INDICTMENT THE JUSTICE DEPARTMENT BLAMED MR DROGOUL FOR THE ILLEGAL LOANS BUT MR DROGOUL HAS IMPLICATED BOTH THE ITALIAN AND US GOVERNMENTS IN THE CASE YESTERDAY'S AGREEMENT IS LIKELY TO FUEL NEW ALLEGATIONS THAT THE FACTS OF THE CASE HAVE BEEN COVERED UP SUCH CHARGES HAVE BEEN MADE BY HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS AMONG OTHERS EVEN JUDGE MARVIN SHOOB WHO PRESIDED OVER MOST OF THE CASE IN FEDERAL DISTRICT COURT IN ATLANTA HAS COMPLAINED THAT FACTS ARE BEING SUPPRESSED THE JUSTICE DEPARTMENT HAD REACHED A PLEA BARGAIN AGREEMENT WITH MR DROGOUL LAST YEAR BUT THE DEPARTMENT ABRUPTLY REJECTED THE PLEA OFFER DURING A SENTENCING HEARING IN WHICH MR DROGOUL NAMED TOP BNL OFFICIALS IN ROME WHO HE SAID HAD ENCOURAGED HIM TO MAKE LOANS TO IRAQ AT THAT HEARING JUDGE SHOOB SAID HE BELIEVED THE JUSTICE DEPARTMENT'S CASE WAS SERIOUSLY FLAWED AND THAT POLITICAL CONSIDERATIONS MAY HAVE INTERFERED WITH THE GOVERNMENT'S THREEYEAR INVESTIGATION INTO THE CASE LAST MONTH HOWEVER THE CLINTON ADMINISTRATION SAID IT HADN'T FOUND EVIDENCE OF A CONSPIRACY BY MEMBERS OF PRESIDENT BUSH'S ADMINISTRATION TO COVER UP FACTS IN THE CASE MR DROGOUL AGREED TO PLEAD GUILTY TO ONE COUNT OF WIRE FRAUD AND TWO COUNTS OF FILING FRAUDULENT REPORTS WITH THE FEDERAL RESERVE BOARD THE GOVERNMENT HAD CHARGED THAT MR DROGOUL MADE UNAUTHORIZED LOANS TO ENTRADE INTERNATIONAL INC A NEW YORK TRADING COMPANY INDIRECTLY OWNED BY A TURKISH CONCERN TO FINANCE EXPORTS TO IRAQ AND THAT MR DROGOUL HAD RECEIVED MILLIONS OF DOLLARS OF SECRET PAYMENTS FROM ENTRADE HOWEVER MR DROGOUL YESTERDAY PLEADED GUILTY TO A LESS SERIOUS CHARGE ACCORDING TO HIS ATTORNEY ROBERT SIMELS OF NEW YORK IN A STATEMENT MR SIMELS SAID MR DROGOUL PLEADED GUILTY TO DISCOUNTING A BNLAUTHORIZED LOAN TO ENTRADE AND THEN RECEIVING GRATUITIES FROM THE COMPANY THE TRIAL OF MR DROGOUL WAS SUPPOSED TO START NEXT WEEK AT THE REQUEST OF THE GOVERNMENT JUDGE SHOOB WAS REMOVED FROM THE CASE MR SIMELS SAID HIS CLIENT AGREED TO THE PLEA AFTER THE NEW JUDGE REFUSED TO ADMIT INFORMATION THAT MR DROGOUL HAD PLANNED TO USE IN HIS DEFENSE THAT INFORMATION PURPORTED TO SHOW BUSH ADMINISTRATION ACTIONS AND THE ADMINISTRATION'S KNOWLEDGE OF RELATIONS BETWEEN BNL AND IRAQ IN HIS STATEMENT MR SIMELS SAID THE COURT HAD BLOCKED HIM FROM INTRODUCING EVIDENCE ABOUT THE US GOVERNMENT'S INTELLIGENCE ON THE ROLE OF BNL ATLANTA IN MAKING LOANS TO IRAQ AND ABOUT THE ITALIAN GOVERNMENT'S EFFORT TO LOBBY AND OTHERWISE CAJOLE THE BUSH ADMINISTRATION NOT TO INDICT BNL IT BECAME APPARENT TO THE DEFENSE THAT A SEARCH FOR THE TRUTH IN THIS MATTER WAS BEING CURTAILED MR SIMELS SAID HE SAID THAT MR DROGOUL WHO HAS BEEN IN JAIL FOR 17 MONTHS AGREED TO THE PLEA AS A RESULT OF THE URGING OF HIS FAMILY TO TERMINATE THE NIGHTMARE OF THIS ALICEINWONDERLAND SETTING MR SIMELS SAID THE GOVERNMENT WILL RECOMMEND A SENTENCE OF 46 TO 57 MONTHS BUT THAT HE WILL ARGUE THAT THE TIME MR DROGOUL HAS ALREADY SPENT IN JAIL IS AN APPROPRIATE SENTENCE 9309030128 930903 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT CORP MEXICAN FRANCHISEE TO OPEN 280 OUTLETS OVER FIVE YEARS A FRANCHISEE OF BLOCKBUSTER ENTERTAINMENT CORP WILL SPEND ABOUT 280 MILLION OVER THE NEXT FIVE YEARS TO OPEN 280 STORES THROUGHOUT MEXICO GRUPO MEXICANO DE VIDEO SA BLOCKBUSTER'S LICENSEE IN MEXICO HAS 56 STORES IN MEXICO AND HAS AN ADDITIONAL 36 OUTLETS UNDER CONSTRUCTION THAT WILL OPEN BY THE END OF THE YEAR JUAN JAIME PETERSON GENERAL DIRECTOR OF GRUPO MEXICANO SAID EXISTING STORES AVERAGE ANNUAL SALES OF ABOUT 1 MILLION EACH THE MEXICO CITY COMPANY WHICH PREVIOUSLY RELIED ON WORDOFMOUTH ALSO PLANS TO LAUNCH A NEW ADVERTISING CAMPAIGN IN MEXICO'S MAJOR CITIES LATER THIS FALL MR PETERSON SAID 9309030127 930903 INTERNATIONAL CHINESE STEEL PRICES DROPPING BEIJING STEEL PRICES IN CHINA ARE DROPPING AS A RESULT OF THE GOVERNMENT'S CREDIT TIGHTENING POLICIES THE OFFICIAL CHINA DAILY SAID IN SHANGHAI THE PRICE FOR ROD STEEL FELL FROM 3900 YUAN 682 A TON IN JUNE TO 3830 YUAN IN JULY PRICES ALSO FELL IN SICHUAN PROVINCE AND THE CITY OF CANTON THE REPORT SAID THE NEWSPAPER SAID CHINESE ANALYSTS ARE PREDICTING PRICES WILL CONTINUE TO FALL LAST YEAR ECONOMIC GROWTH AND HEAVY INVESTMENT RESULTED IN HIGH PRICES FOR STEEL AS DEMAND OUTSTRIPPED SUPPLY THE NEWSPAPER SAID 9309030126 930903 SUSQUEHANNA BANCSHARES INC LITITZ PA SUSQUEHANNA BANCSHARES INC SAID IT AGREED TO ACQUIRE EIGHT BRANCHES OF FIRST NATIONAL BANK OF MARYLAND IN ALLEGHANY COUNTY MD AND ABOUT 180 MILLION OF DEPOSITS SUSQUEHANNA A BANK HOLDING COMPANY WITH TOTAL ASSETS OF 17 BILLION SAID THE ACQUISITION WILL INCREASE ASSETS OF ITS FARMERS & MERCHANTS BANK HAGERSTOWN MD TO ABOUT 468 MILLION SUSQUEHANNA WILL ACQUIRE THE BRANCHES FROM A UNIT OF FIRST MARYLAND BANCORP BALTIMORE WHICH HAS ASSETS IN EXCESS OF 9 BILLION 9309030125 930903 HEARD ON THE STREET FUTURE COMMUNICATIONS' STOCK PRICE SURGE SPARKS CRIES OF FOUL SUSPENSION OF TRADING BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT'S BEHIND THE TRADING HALT IN FUTURE COMMUNICATIONS A BIG FIGHT ON ONE SIDE OF THE RING ARE THE COMPANY A DALLASBASED CABLETELEVISION CONCERN WITH ONLY THREE DOZEN EMPLOYEES AND A BEVERLY HILLS CALIF STOCKBROKER WHO IS THE STOCK'S BIGGEST BOOSTER ON THE OTHER ARE A GROUP OF BEARS LED BY ASPEN CAPITAL AND FAHNESTOCK WHO BELIEVE THE COMPANY HAS MISLED INVESTORS AND WHO HAVE ACCESS TO REGULATORS YESTERDAY THE BEARS KNOWN AS SHORTSELLERS SCORED A MAJOR VICTORY WHEN THE NATIONAL ASSOCIATION OF SECURITIES DEALERS NOTIFIED BROKERS THAT IT WAS SUSPENDING FUTURE'S STOCK FROM TRADING INDEFINITELY WHILE IT DETERMINES WHETHER THE COMPANY COMPLIES WITH NASDAQ LISTING STANDARDS SHORTSELLERS SAY IT'S ABOUT TIME FUTURE HAS A TRACK RECORD OF CONVOLUTED BUSINESS TRANSACTIONS OFTEN INVOLVING MEMBERS OF THE CHIEF EXECUTIVE'S FAMILY LITTLE MORE THAN TWO MONTHS AGO FUTURE WAS AT 6 1/2 TUESDAY IT CLOSED AT 27 3/8 THE SURGE HAS INFURIATED THE SHORTS WHO BORROW STOCK AND SELL IT HOPING TO PROFIT BY RETURNING CHEAPER SHARES LATER ON THIS COMPANY IS A FRAUD OF MONUMENTAL PROPORTIONS CONTENDS STEPHEN CARLSON A PARTNER AT ASPEN CAPITAL IN DENVER THEY'VE BEEN COOKING THEIR BOOKS MR CARLSON SAYS HE HAS BEEN CONTACTED ABOUT FUTURE SEVERAL TIMES BY THE SECURITIES AND EXCHANGE COMMISSION WHICH HE SAYS IS INVESTIGATING FUTURE SERGIO BOSCO FUTURE'S CHIEF EXECUTIVE OFFICER SAYS TALK OF AN SEC PROBE IS AN ABSOLUTE LIE HE SAYS THE PROBLEM THAT LED TO THE SUSPENSION IS A SIMPLE HOUSECLEANING ITEM THAT WILL BE RESOLVED BY TUESDAY WE DIDN'T SEND IN CERTAIN INFORMATION TO THE NASD THAT WE WERE SUPPOSED TO HE SAYS WE'RE DOING IT NOW BROKER RAFI KHAN FUTURE'S SUPPORTER ARGUES THAT IN SUSPENDING FUTURE THE NASD IS BOWING TO PRESSURE FROM THE SHORTSELLERS WHO STAND TO LOSE MILLIONS IF THE STOCK CONTINUES TO RISE BUT DONALD BOSIC AN NASD VICE PRESIDENT SAYS OUR CONCERN IS WITH THE COMPANY AND NOT WITH THE SHORTS HE ADDS I CAN ASSURE YOU THE NASD HAS NOT BEEN PRESSURED INTO SUSPENDING FUTURE FUTURE WENT LARGELY UNNOTICED UNTIL JUNE 17 WHEN MR KHAN PUT OUT A BUY RECOMMENDATION ON THE CABLETELEVISION AND PROGRAMMING COMPANY LIKE A ROCKET FUTURE'S STOCK TOOK OFF YESTERDAY MR KHAN SAID IN AN INTERVIEW THAT HE WAS RESPONSIBLE FOR PLACING 26 MILLION OF FUTURE'S 33 MILLION SHARES OUTSTANDING WITH HIS CLIENT AND PERSONAL ACCOUNTS THOSE ACCOUNTS HE SAYS INCLUDE GLICKENHAUS & CO AND CONSECO THE BROKER'S CASE FOR THE STOCK RESTS IN PART ON THE CABLE ACT OF 1993 WHICH GIVES LOCAL TELEVISION STATIONS SUCH AS FUTURE'S AFFILIATES THE RIGHT TO BE CARRIED ON LOCAL CABLE NETWORKS MR KHAN ISN'T VERY POPULAR AMONG MEMBERS OF THE SHORTSELLING COMMUNITY HE WAS A BACKER OF CONSECO A STOCK IN WHICH SHORTSELLERS INCURRED HEAVY LOSSES LAST YEAR HE'S ALSO WAGING A PROXY FIGHT FOR ICN PHARMACEUTICALS WITH THE SUPPORT OF MR KHAN FUTURE GAINED INVESTORS' ATTENTION AND ITS STOCK PRICE MORE THAN QUADRUPLED IN A SHORT TIME SETH GLICKENHAUS ONE OF MR KHAN'S CLIENTS SAYS THAT FUTURE'S FUNDAMENTALS ARE MARVELOUS CITING THE COMPANY'S OWNERSHIP OF THE BILLY BOB'S COUNTRY MUSIC TV PROGRAM MR GLICKENHAUS SAYS HE BELIEVES MR KHAN IS A VERY FINE ANALYST WHO HAS RUN AFOUL OF SHORTSELLERS AS FOR THE SHORTS HE SAYS THEY'RE THE UGLIEST SUBVERSIVES BUT SHORTS SUCH AS ASPEN CAPITAL'S MR CARLSON DID GET AN AUDIENCE WITH FINANCIAL COLUMNIST DAN DORFMAN ON AUG 24 MR DORFMAN WENT ON CABLETV NETWORK CNBC SPEAKING OF AN SEC INVESTIGATION INTO FUTURE'S ACCOUNTING PRACTICES AND CITING SOME CHOICE WORDS BY MR CARLSON THAT DAY FUTURE TRADED MORE THAN 13 MILLION SHARES A RECORD FOR THE COMPANY AND FIVE TIMES ITS NORMAL VOLUME HERE THE STORY BEGINS TO GET FUZZIER MR KHAN SAYS THAT THE TOTAL SHORT POSITION IN THE STOCK WHICH WAS RECORDED AT 258000 SHARES FOR THE MONTH ENDED AUG 13 SOARED MR KHAN SAYS THAT MUCH OF THE SHORTSELLING WAS DONE PRIOR TO MR DORFMAN'S REPORT AN ASSERTION THAT CAN'T BE INDEPENDENTLY CONFIRMED IN ANY CASE MR KHAN AND AT LEAST SOME OF HIS CLIENTS APPEAR TO HAVE HATCHED A PLAN THAT COULD RESULT IN A HUGE RISE IN FUTURE'S STOCK SHOULD IT RESUME TRADING ON NASDAQ MR KHAN SAYS HE HAD PLANNED BEFORE THE SUSPENSION TO BUY IN SOME 500000 FUTURE SHARES FOR CLIENTS THE SHARES PRESUMABLY WOULD COME FROM SHORTSELLERS BECAUSE HIS CLIENTS CONTROL THE BULK OF FUTURE'S STOCK OUTSTANDING THEY ARE THE NATURAL SELLERS AND COULD CHARGE SHORTSELLERS A STEEP PRICE IN ANY CASE THERE IS AT LEAST SOME EVIDENCE THAT THE SHORTSELLERS HAVE A POINT FOR INSTANCE WHEN FUTURE ANNOUNCED ON TUESDAY THAT AN UNIDENTIFIED THIRD PARTY HAD AGREED TO ACQUIRE A 29 MILLION JUDGMENT AGAINST IT THAT WAS NEWS TO SOME SHAREHOLDERS FUTURE THEY CONTEND FAILED TO DISCLOSE THAT THERE WAS A JUDGMENT OR THAT A RECEIVER HAD BEEN APPOINTED BY A FEDERAL JUDGE LAST MAY TO TAKE CONTROL OF FUTURE'S ASSETS MR BOSCO CONCEDED YESTERDAY THAT THE FAILURE TO DISCLOSE WAS THE ONLY REAL SIN WE COMMITTED AMPLE REASON FOR A TRADING HALT STAY TUNED 9309030124 930903 CORRECTION BECAUSE OF A PRODUCTION ERROR IN CHARLES WOLF JR'S AUG 30 REVIEW OF THE REAL WORLD ORDER HERMAN KAHN'S NAME WAS MISSPELLED 9309030123 930903 BUSINESS BRIEF BERNARD CHAUS INC FIRM POSTS 4THPERIOD LOSS CITING WEAKNESS IN RETAIL BLAMING THE WEAK RETAIL CLIMATE WOMEN'S APPAREL MAKER BERNARD CHAUS INC REPORTED A GREATERTHANEXPECTED LOSS FOR THE FISCAL FOURTH QUARTER FOR THE PERIOD ENDED JUNE 30 THE NEW YORK COMPANY REPORTED A NET LOSS OF 99 MILLION OR 54 CENTS A SHARE COMPARED WITH NET INCOME OF 22 MILLION OR 12 CENTS A SHARE INCLUDING A 782000 TAX BENEFIT A YEAR EARLIER SALES FELL 12 TO 547 MILLION FROM THE YEAREARLIER 621 MILLION IN NEW YORK STOCK EXCHANGE TRADING CHAUS COMMON SHARES CLOSED AT 275 DOWN 125 CENTS THE COMPANY SAID WEAK CONSUMER SPENDING RESULTED IN AN INCREASE OF INVENTORIES AND FEWER SALES AT REGULAR PRICES FOR THE 1993 FISCAL YEAR CHAUS POSTED A NET LOSS OF 11 MILLION OR 60 CENTS A SHARE COMPARED WITH NET INCOME OF 55 MILLION OR 30 CENTS A SHARE INCLUDING A 2 MILLION TAX BENEFIT A YEAR EARLIER 9309030121 930903 BUSINESS BRIEF BURLINGTON NORTHERN SAYS 3RDPERIOD PROFIT TO BE HURT BY FLOODS FORT WORTH TEXAS BURLINGTON NORTHERN INC SAID THE MIDWEST FLOODS WILL REDUCE ITS THIRDQUARTER OPERATING PROFIT BY ABOUT 80 MILLION OR 55 CENTS A SHARE THE BURLINGTON NORTHERN RAILROAD UNIT EXPECTS TO RETURN TO NORMAL OPERATION BY MIDSEPTEMBER THE COMPANY SAID NOTING THAT THE 1993 FLOODS BEGAN TO AFFECT SERVICE AS EARLY AS MIDAPRIL IN THE 1992 THIRD QUARTER BURLINGTON NORTHERN HAD NET OF 61 MILLION OR 68 CENTS A SHARE ON REVENUE OF 116 BILLION IN JULY HIGH WATER PREVENTED THE RAILROAD FROM SERVING SEVEN OF ITS UTILITY CUSTOMERS WITH LOWSULFUR COAL AND RESULTED IN SERVICE DELAYS OF UP TO TWO WEEKS TO GRAIN INTERMODAL AND OTHER CUSTOMERS DAVID C ANDERSON EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE COMPANY ESTIMATES THAT IN THE THIRD QUARTER IT WILL INCUR 30 MILLION TO 35 MILLION IN INCREMENTAL OPERATING COSTS AND RECOVERY EXPENDITURES TO PUT THE RAILROAD BACK INTO PREFLOOD CONDITION THE FIGURE INCLUDES REBUILDING AND REPAIRING ROADBED AND TRACK AND INSPECTING AND REPAIRING 400 CARS AND FIVE LOCOMOTIVES ALSO 45 MILLION TO 50 MILLION OF REVENUE WILL BE LOST IN THE QUARTER BECAUSE OF THE FLOODS WHILE SOME PENTUP DEMAND WILL CARRY OVER INTO THE FOURTH QUARTER THAT PERIOD IS NORMALLY THE BUSIEST OF THE YEAR SO IT'S UNCLEAR HOW MUCH ADDITIONAL DEMAND CAN BE HANDLED THE COMPANY SAID ADDITIONAL FLOODRELATED EXPENDITURES ARE LIKELY IN THE FOURTH QUARTER BUT AREN'T EXPECTED TO BE MATERIAL IT ADDED BURLINGTON SAID THE RECENTLY ADOPTED FEDERAL BUDGET WHICH INCLUDES A HIGHER CORPORATE INCOME TAX RATE WILL RESULT IN A 5 MILLION INCREASE IN THIRDQUARTER TAX EXPENSE TO COVER THE FIRST HALF AS WELL AS REQUIRE A ONETIME NONCASH CHARGE OF 26 MILLION FOR ADJUSTMENT OF DEFERRED TAXES 9309030120 930903 BUSINESS BRIEF FEDERAL EXPRESS CORP LONGTERM LEASE IS PLANNED OF 13 LUFTHANSA AIRBUS JETS FEDERAL EXPRESS CORP SAID IT WILL LEASE 13 FREIGHTER PLANES FROM LUFTHANSA AG IN A MOVE TO CUT OPERATING COSTS THE MEMPHIS TENNBASED PACKAGEDELIVERY SERVICE DECLINED TO SPECIFY THE VALUE OF THE LEASE WHICH IT SAID WILL EXTEND FOR MORE THAN 10 YEARS FEDERAL EXPRESS SAID IT PLANS TO RETIRE SOME OF ITS AGING 727S AND REPLACE THEM ON BUSY DOMESTIC ROUTES WITH THE LEASED JETS A MOVE THAT ANALYSTS SAY WILL BOOST OPERATING EFFICIENCIES THE AIRBUS 310203 AIRCRAFT TO BE LEASED CARRY NEARLY TWICE AS MUCH CARGO AS BOEING 727S AND REQUIRE ONLY TWO PILOTS INSTEAD OF A 727'S THREE THE AIRBUS JETS WHICH ARE SEVEN TO 11 YEARS OLD ARE SCHEDULED FOR DELIVERY STARTING IN JULY 1994 AS PART OF THE DEAL FEDERAL EXPRESS WILL LEASE FIVE 747 AIRCRAFT TO LUFTHANSA BEGINNING IN 1998 ANALYSTS SAY THAT MOVE WILL ENABLE THE COMPANY TO TURN INEFFICIENT LARGER CRAFT INTO MONEYMAKERS 9309030119 930903 BUSINESS BRIEF AVON PRODUCTS INC STOCK PLUNGES ON FORECAST OF LOWER 3RDQUARTER NET AVON PRODUCTS INC SHARES FELL SHARPLY AFTER THE DIRECT SELLER OF BEAUTY PRODUCTS SAID IT EXPECTS THIRDQUARTER EARNINGS TO TRAIL LAST YEAR'S RESULTS THE COMPANY IN NEW YORK BLAMED THE EXPECTED WEAK PERFORMANCE ON THE SLUGGISH US ECONOMY AND CHANGES BEING MADE IN ITS US MARKETING STRATEGY IT SAID IT EXPECTS FOURTHQUARTER AND FULLYEAR EARNINGS WILL SURPASS 1992 RESULTS IN LATE NEW YORK STOCK EXCHANGE TRADING AVON SHARES FELL 4625 OR 78 TO CLOSE AT 54875 A SHARE THE COMPANY PLANS TO REPORT EARNINGS ON OCT 18 IN THE 1992 THIRD QUARTER AVON REPORTED NET INCOME OF 539 MILLION OR 75 CENTS A SHARE DIANA TEMPLE AN ANALYST WITH SALOMON BROTHERS INC SAID THAT SHE IS REVISING DOWNWARD HER PROJECTIONS FOR AVON'S THIRD QUARTER 1993 NET TO 72 CENTS A SHARE FROM 74 CENTS A SHARE SHE SAID THE COMPANY IS INCREASING ADVERTISING SPENDING SUBSTANTIALLY WHICH AFFECTS COSTS IN THE WEAK THIRD QUARTER AND IS STEPPING UP ITS DIRECTMAIL AND TELEPHONESALES EFFORTS 9309030118 930903 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED AUG 27 ACCOUNTED FOR 128 OR AN AVERAGE 316 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 349 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 383 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 592 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 556 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 345 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 99 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES COOPER NEFF SUSQUEHANNA AND KIDDER PEABODY EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9309030117 930903 BUSINESS BRIEF 50OFF STORES INC AUGUST TOTAL SALES ROSE BUT SAMESTORE SALES FELL THE COMPANY BLAMED THE DECLINE IN SAMESTORE SALES WHICH HAS CONTINUED SINCE LAST YEAR ON HIGHER MARKDOWNS AS A RESULT OF INCREASED COMPETITION A SPOKESWOMAN ALSO SAID THE COMPANY DISMISSED ITS MERCHANDISE MANAGER IN JUNE AND HAS BROUGHT ON BOARD A NEW VICE PRESIDENT FOR WOMEN'S MERCHANDISE AND A NEW MENSWEAR BUYER AS PART OF A CHANGE IN BUYING STRATEGY TO ADDRESS THE DECLINING SAMESTORE SALES SHE SAID THE COMPANY EXPECTS TO SEE AN IMPROVEMENT STARTING THIS MONTH 9309030116 930903 FBI INVESTIGATING 1980S TRANSACTIONS BY FAILED THRIFT BY ABBY R SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE FEDERAL BUREAU OF INVESTIGATION IS INVESTIGATING ONE OR MORE TRANSACTIONS INVOLVING ASSETBACKED SECURITIES ISSUED IN THE LATE 1980S BY A FAILED ARIZONA THRIFT MERRILL LYNCH & CO WHICH OFFERED SOME OF THE SECURITIES THROUGH A SUBSIDIARY AND SERVED AS AN UNDERWRITER FOR WESTERN SAVINGS & LOAN ASSOCIATION CONFIRMED THAT AN INVESTIGATION WAS IN PROGRESS BUT SAID THAT MERRILL LYNCH WAS NOT A TARGET PEOPLE FAMILIAR WITH THE AGENCY'S INQUIRIES SAY SEVERAL INDIVIDUALS INCLUDING PAST EMPLOYEES OF MERRILL LYNCH HAVE BEEN INTERVIEWED BY THE FBI AN INDIVIDUAL INTERVIEWED BY THE FBI SAID WEDNESDAY THAT AGENTS HAVE ASKED ABOUT THE ROLE OF TWO INVESTMENT BANKERS IN THE TRANSACTIONS ONE OF THEM WAS IDENTIFIED AS THOMAS CAPASSE FORMER COHEAD OF THE FIRM'S ASSETBACKED SECURITIES GROUP MR CAPASSE STILL WORKS AT MERRILL BUT HE WAS DEMOTED THIS MONTH WHEN THE FIRM BROUGHT IN SALOMON BROTHERS BANKER MICHAEL NORMILE TO HEAD THE UNIT MR CAPASSE SAID WEDNESDAY I CAN'T COMMENT ON ANY OF THIS AN INDIVIDUAL FAMILIAR WITH THE MATTER SAID THE INQUIRY CONCERNS AT LEAST ONE TRANSACTION OFFERED BY WESTERN SAVINGS & LOAN A NOWINSOLVENT ARIZONA THRIFT THAT ISN'T RELATED TO SEVERAL OTHER SIMILARLY NAMED COMPANIES WESTERN SAVINGS ISSUED SEVERAL SECURITIES BACKED BY MOBILEHOME LOANS IN THE LATE 1980S BUT THE EXACT NATURE OF THE INQUIRY ISN'T CLEAR AN EMPLOYEE WHO ANSWERED THE TELEPHONE IN THE FBI'S SECURITIES FRAUD UNIT SAID THE SPECIAL AGENT ASSIGNED TO THE INVESTIGATION WAS ON VACATION AND COULDN'T BE REACHED YESTERDAY AFTERNOON MERRILL EMPHASIZED IT HAS BEEN TOLD BY THE US ATTORNEY'S OFFICE IN MANHATTAN THAT THE FIRM ITSELF ISN'T A TARGET OF THE INVESTIGATION BUT MERRILL OFFICIALS SAID THE FIRM IS COOPERATING FULLY IN THIS REVIEW NORMAN DREHER AN RESOLUTION TRUST CORP INVESTIGATING OFFICER IN PHOENIX SAID YESTERDAY THAT HIS OFFICE HAD RECEIVED A SUBPOENA REQUESTING INFORMATION ABOUT THE CASE HE WOULD NOT ELABORATE BUT SAID HIS OFFICE WASN'T HEAVILY INVOLVED IN THE INVESTIGATION 9309030115 930903 NOAH HAD IT EASIER HE KNEW HOW LONG THE RAINS WOULD LAST BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO LONG MAY IT HAVE RAINED JAPANESE NEWSPAPERS ARE SPLASHING THE HISTORYMAKING NEWS ACROSS THEIR FRONT PAGES FOR THE FIRST TIME EVER JAPAN'S NATIONAL METEOROLOGICAL AGENCY WON'T SAY JUST WHEN THE SUMMER RAINS ENDED THIS YEAR THERE WAS TOO MUCH RAIN TO KNOW FOR SURE OFFICIALS SAY JAPAN HAS NO GREAT RIVERS LIKE THE MISSISSIPPI TO CAUSE DISASTROUS FLOODING WHEN THE RAINS DON'T STOP INSTEAD IT GETS SOGGY RICE RUNAWAY ROYAL FISH AND A RUN ON THE BUG MARKET AND UNPRECEDENTED CLIMACTIC CONFUSION NATURECONSCIOUS JAPAN CLOSELY FOLLOWS ITS ANNUAL RAINY SEASON THE SIX WEEKS OF DRIZZLE AND MILDEW BEFORE SUMMER HEATS UP THE RAINY SEASON GETS A WIDELY PUBLICIZED OFFICIAL STARTING AND ENDING DATE USEFUL FOR RECORDKEEPING COMPARISONS AND CHITCHAT THIS YEAR'S INITIAL DRIZZLE WAS RIGHT ON ITS EARLYJUNE SCHEDULE IT JUST NEVER STOPPED LAST WEEK JAPAN'S FIFTH TYPHOON OF THE YEAR FLOODED THE MOAT OF JAPAN'S IMPERIAL PALACE IN DOWNTOWN TOKYO IMPERIAL CARP FLED THEIR HOME FOR THE FIRST TIME AND FLOPPED IN KNEEDEEP WATERS COVERING ONE OF JAPAN'S BUSIEST INTERSECTIONS AFTER EXTENSIVE BRAINSTORMING THE AGENCY HAS CONCLUDED THAT THE RAINY SEASON IS DEFINITELY OVER NOW AFTER ALL GOVERNMENT WEATHERMAN SHIGENORI SAKAI NOTES IT'S SEPTEMBER IT'S NOT THE RAINY SEASON NOW MR SAKAI SAYS IT'S THE TYPHOON SEASON A WATERLOGGED NATION DESPAIRS KYUSHU JAPAN'S MAIN SOUTHERN ISLAND HAD 536 OF ITS NORMAL RAIN IN AUGUST JAPAN'S ALLIMPORTANT RICE CROP OVERWATERED BY RAIN IS EXPECTED TO BE ONE OF THE WORST ON RECORD WITH ALL THE CLOUDS THIS HAS ALSO BEEN THE COLDEST SUMMER IN JAPAN SINCE 1945 THAT'S SILENCED JAPAN'S MUCHLOVED CICADAS BY THIS TIME MOST YEARS THE COLLECTIVE CHIRPING OF THESE SHINYWINGED BUGS WAILS THROUGH PARKS LIKE AN INVISIBLE MOTOCROSS RALLY THIS YEAR NARY A PEEP THERE WAS BAD NEWS ON THE BUG FRONT AS WELL THE CATCH OF GIANTSIZED BEETLES POPULAR WITH JAPANESE BOYS IN THE WARM WEATHER WAS JUST 70 OF NORMAL IT WAS SO HARD TO CATCH THE BUG THAT PRICES ROSE 25 CRIPPLING SALES AND AT JAPAN'S CENTRAL BANK WORKERS USED HOUSEHOLD IRONS TO DRY 136832 YEN BILLS DRENCHED BY TORRENTIAL RAINS MUCH OF THE MONEY BECAME SOGGY IN AUTOMATIC TELLER MACHINES IT TOOK THREE WEEKS TO IRON AND STACK THE BILLS TO BE COUNTED BEFORE SHREDDING FOR RECYCLING INTO NEW BILLS ANY OTHER PROBLEMS I COULDN'T TAKE MY SUMMER VACATION BECAUSE OF THE RAIN COMPLAINS MR SAKAI I'VE BEEN TOO BUSY TALKING TO THE MEDIA 9309030114 930903 ECONOMY BUSINESSES PREFER BUYING EQUIPMENT TO HIRING NEW STAFF RISING LABOR COSTS COMPARED TO CAPITAL INVESTMENT ADD TO WEAKNESS IN JOB GROWTH BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUSINESSES SEEM CONSIDERABLY MORE EAGER THESE DAYS TO PURCHASE A NEW PIECE OF EQUIPMENT THAN TO HIRE A NEW EMPLOYEE AND IT'S NO WONDER LABOR COSTS ARE SKYROCKETING WHEN COMPARED WITH THE COST OF CAPITAL EQUIPMENT IN THE FIRST TWO QUARTERS OF 1993 LABOR COSTS INCREASED AT A 36 ANNUAL RATE WHILE THE COST OF CAPITAL EQUIPMENT FELL AT A 77 RATE AND SINCE THE MID1980S THE COST OF LABOR HAS MORE THAN TRIPLED RELATIVE TO CAPITAL THE RESULT HAS BEEN A RELUCTANCE ON THE PART OF BUSINESSES TO ADD WORKERS ONE REASON THE LABOR MARKET REMAINS SO UNPROMISING MORE THAN TWO YEARS AFTER THE RECOVERY BEGAN CLEARLY ACTUAL AND EXPECTED LABOR COSTS ARE A SIGNIFICANT REASON WHY JOB GROWTH IS SO WEAK SAYS JOHN SILVIA ECONOMIST FOR KEMPER FINANCIAL SERVICES IN CHICAGO ANALYSTS DIFFER ON HOW MUCH CAPITAL INVESTMENT SHOULD BE BLAMED FOR THE CURRENT SLUGGISH JOB GROWTH BUT MANY THINK THAT MORE AND MORE COMPANIES ARE SUBSTITUTING CAPITAL INVESTMENT FOR NEW HIRES I THINK IT'S A PRIMARY IMPEDIMENT TO JOB GROWTH SAYS MARK ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA LABOR IS OVERPRICED NOT BECAUSE OF QUICKLY RISING SALARIES AND WAGES BUT BECAUSE OF THE ESCALATING COST OF HEALTH CARE WAGES AND SALARIES HAVE BARELY KEPT PACE WITH INFLATION OVER THE PAST TWO YEARS DURING THE 12 MONTHS ENDED IN JUNE THEY ROSE JUST 28 BELOW THE 3 INCREASE IN CONSUMER PRICES DURING THAT PERIOD THE COST OF EMPLOYEE BENEFITS ON THE OTHER HAND ROSE 55 MAINLY BECAUSE OF HEALTH CARE THAT WAS DOWN FROM THE 7 PACE OF THE EARLY 1990S BUT STILL FORMIDABLE WITH PRESIDENT CLINTON'S PLAN TO REFORM HEALTH CARE LOOMING LARGE COMPANIES ARE WORRIED ABOUT FURTHER NEW COSTS AND LIKELY WILL REMAIN HESITANT ABOUT HIRING PERMANENT EMPLOYEES THE PRICE OF A UNIT OF LABOR ISN'T FIXED IF AN EMPLOYEE BREAKS DOWN YOU HAVE THE ADDED COST OF HEALTH CARE SAYS DOUG HANDLER ECONOMIST FOR DUN & BRADSTREET IN NEW YORK IF A PIECE OF EQUIPMENT BREAKS DOWN IT'S EASIER AND LESS COSTLY TO REPAIR AGAINST SUCH A BACKDROP ANALYSTS SAY IT IS NO WONDER THAT INVESTMENT IN CAPITAL EQUIPMENT HAS BECOME INCREASINGLY ATTRACTIVE THE COST OF CAPITAL EQUIPMENT HAS BEEN FALLING QUICKLY LONGTERM INTEREST RATES A KEY COMPONENT FOR INVESTMENT DECISIONS ARE AT HISTORICAL LOWS ALSO COMPANIES HAVE BEEN ABLE TO FINANCE THEIR PURCHASE OF EQUIPMENT THROUGH EQUITY MARKETS BECAUSE OF RISING STOCK PRICES THE ATTRACTIVE COSTS FOR INDUSTRIAL MACHINERY AND COMPUTER EQUIPMENT HAVE LED TO A SPURT IN SALES AFTER FALLING IN 1991 INVESTMENT IN DURABLE EQUIPMENT GREW NEARLY 7 IN 1992 THIS YEAR SUCH INVESTMENT HAS JUMPED NEARLY 20 IN EACH QUARTER AND THE COMMERCE DEPARTMENT SAID YESTERDAY THAT ORDERS FOR INDUSTRIAL MACHINERY AND EQUIPMENT ROSE BRISKLY IN JULY MAJOR FACTOR NOT ALL ECONOMISTS AGREE THAT CAPITAL INVESTMENT IS CHIEFLY WHAT IS KEEPING COMPANIES FROM HIRING MR SILVIA OF KEMPER SAYS INVESTMENT IN CAPITAL IS ABOUT 20 OF THE REASON THE LABOR MARKET IS IN THE DOLDRUMS THE REMAINING 80 HE FIGURES IS JUST THE ECONOMY BRUCE STEINBERG ECONOMIST FOR MERRILL LYNCH & CO SAYS THE EFFECT IS MINIMAL BUT INDIVIDUAL COMPANIES' EXPERIENCES INDICATE THAT IN SOME CASES MANAGERS ARE CHOOSING NEW EQUIPMENT OVER NEW WORKERS FOR EXAMPLE LINCOLN ELECTRIC CO A MAKER OF ARCWELDING PRODUCTS AND INDUSTRIAL MOTORS IN CLEVELAND PLANS TO RAISE CAPITAL EXPENDITURES 20 TO 30 THIS YEAR FROM 1992 LEVELS WE TEND TO MAKE A CAPITAL INVESTMENT BEFORE HIRING A NEW WORKER SAYS RICHARD SOBOW ASSISTANT TO LINCOLN'S CHIEF EXECUTIVE IT HASN'T ALWAYS BEEN THIS WAY IN THE 1970S BUSINESSES FOUND HIRING NEW WORKERS ATTRACTIVE RELATIVE TO SPENDING MONEY ON EQUIPMENT THAT IS BECAUSE THE LABOR FORCE WAS GROWING RAPIDLY AS BABY BOOMERS AND MORE WOMEN ENTERED THE JOB MARKET MAKING LABOR RELATIVELY CHEAP AT THE SAME TIME INFLATION WAS ACCELERATING INTEREST RATES WERE HIGH AND STOCK PRICES WERE LOW RAISING THE PRICE OF CAPITAL EQUIPMENT ANALYSTS SAY JOB GROWTH IS LIKELY TO CONTINUE TO BE SLOWED BY CAPITAL INVESTMENT UNTIL GROWTH IN EMPLOYEE BENEFITS SLOWS LABOR PRODUCTIVITY INCREASES MORE RAPIDLY OR INTEREST RATES RISE A LOT NONE OF THAT IS LIKELY TO HAPPEN SOON SAYS MR ZANDI OF REGIONAL FINANCIAL ASSOCIATES WHERE THE INVESTMENT IN CAPITAL OVER LABOR IS MOST EVIDENT IS IN THE MANUFACTURING SECTOR TRANSPORTATION AND THE UTILITY COMPANIES HAVE TAKEN ADVANTAGE OF CAPITAL INVESTMENT THE MOST ANALYSTS SAY BUT THE SERVICE SECTOR ISN'T IMMUNE FINANCIAL INSTITUTIONS AND COMMUNICATIONS FIRMS IN PARTICULAR HAVE BEGUN ADDING COMPUTERS AND SOFTWARE IN LIEU OF WORKERS ANALYSTS EXPECT THE TREND TO CONTINUE 9309030113 930903 BUSINESS BRIEF CALLAWAY GOLF CO CHAIRMAN AND CEO DELAYS PREVIOUS RETIREMENT PLANS ELY CALLAWAY 74YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OF CALLAWAY GOLF CO SAID HE INTENDS TO REMAIN AT THE CARLSBAD CALIF COMPANY AT LEAST THROUGH JUNE 1995 WHEN HE'LL TURN 76 MR CALLAWAY EARLIER THIS YEAR LAID OUT SUCCESSION PLANS NAMING DONALD H DYE PRESIDENT MR CALLAWAY SAID HE HAS SOLD ABOUT 345000 SHARES OR 18 OF HIS PERSONAL HOLDINGS THIS YEAR HE NOW HOLDS ABOUT 11 MILLION SHARES ANOTHER 490000 SHARES ARE AVAILABLE UNDER OPTIONS NOT YET EXERCISED MR CALLAWAY ALSO SAID HE PLANS TO SELL UP TO ABOUT ONE MILLION OF HIS SHARES OVER THE NEXT 18 MONTHS HE ALSO PLANS TO GIVE SOME OF HIS SHARES TO CHARITIES BY JUNE 1995 MR CALLAWAY SAID HE PROBABLY WILL OWN AT LEAST 250000 SHARES OR OPTIONS I WILL PROBABLY OWN THAT AMOUNT FOR THE EVENTUAL BENEFIT OF MY ESTATE HE SAID 9309030112 930903 MARKETING BRIEF AFFILIATED PUBLICATIONS INC PUBLISHER EXPECTS '93 PROFIT TO CLIMB SHARPLY FROM '92 AFFILIATED PUBLICATIONS INC SAID IT EXPECTS 1993 NET INCOME OF ABOUT 366 MILLION MORE THAN DOUBLE THE 1992 LEVEL BASED ON THE ASSUMPTION THAT NEW ENGLAND'S ECONOMY WILL GRADUALLY IMPROVE IN 1992 AFFILIATED HAD NET INCOME OF 141 MILLION OR 20 CENTS A SHARE AFTER A 138 MILLION ACCOUNTING ADJUSTMENT THE FORECAST WAS MADE IN A JOINT PROXY STATEMENT FROM AFFILIATED PUBLISHER OF THE BOSTON GLOBE AND THE NEW YORK TIMES CO WHICH HAS AGREED TO BUY AFFILIATED SHAREHOLDERS OF BOTH COMPANIES ARE SCHEDULED TO VOTE ON THE MERGER SEPT 28 AFFILIATED'S REVENUE FOR THE YEAR IS EXPECTED TO BE 4387 MILLION COMPARED WITH 414 MILLION IN 1992 THE PROXY SAID THE PREDICTIONS INDICATE AFFILIATED EXPECTS A SOLID SECOND HALF ALTHOUGH IT HAS BEEN BESET BY SLUGGISH ADVERTISING GAINS IN A LACKLUSTER LOCAL ECONOMY IN THE 1993 FIRST HALF THE BOSTONBASED COMPANY REPORTED NET INCOME OF 155 MILLION OR 22 CENTS A SHARE ON REVENUE OF 2127 MILLION ALSO IN THE PROXY STATEMENT AFFILIATED PREDICTED 1994 NET INCOME OF 496 MILLION ON REVENUE OF 4807 MILLION AS OF JUNE 27 AFFILIATED HAD 711 MILLION SHARES OUTSTANDING BASED ON THAT FIGURE THE EARNINGS ANTICIPATED BY THE COMPANY ARE EQUIVALENT TO 51 CENTS A SHARE IN 1993 AND 70 CENTS A SHARE IN 1994 9309030111 930903 BUSINESS BRIEF BROWNINGFERRIS TO BUY WESTERN WASTE IN STOCK SWAP VALUED AT 411 MILLION BROWNINGFERRIS INDUSTRIES INC AGREED IN PRINCIPLE TO ACQUIRE WESTERN WASTE INDUSTRIES INC FOR STOCK CURRENTLY VALUED AT ABOUT 411 MILLION THE MOVE MAY HERALD A NEW PHASE IN THE WASTE INDUSTRY'S CONSOLIDATION IN WHICH PUBLICLY TRADED COMPANIES WILL NOW BEGIN TO PARTICIPATE IN THE SHAKEOUT TERMS OF THE TENTATIVE AGREEMENT CALL FOR WESTERN WASTE HOLDERS TO SWAP EACH OF THEIR SHARES FOR 102 BROWNING SHARES A RATIO THAT WOULD PROVIDE STOCK VALUED AT 2410 BASED ON BFI'S PRICE YESTERDAY THAT REPRESENTS A SUBSTANTIAL PREMIUM FOR WESTERN WASTE SHARES WHICH WERE TRADING AT 10 LESS THAN THREE WEEKS AGO DISCLOSURE OF THE AGREEMENT SENT THE SHARES OF SEVERAL OTHER SECONDTIER TRASH COMPANIES UPWARD AS INVESTORS GREW ENCOURAGED THAT MORE BIG PURCHASES MAY LIE AHEAD FOR THE INDUSTRY HISTORICALLY PUBLICLY HELD WASTE COMPANIES HAVE FOSTERED THEIR GROWTH BY PURCHASING SMALL PRIVATELY OWNED OPERATIONS BFI FOR EXAMPLE PAID ABOUT 50 MILLION LAST YEAR TO BUY 45 GARBAGE CONCERNS BUT WITH PROFIT MARGINS AND SHARE VALUATION UNDER PRESSURE FROM SOFT INDUSTRY CONDITIONS THERE HAS BEEN SPECULATION THAT THE SECOND TIER OF PUBLICLY TRADED TRASH HAULERS THOSE A STEP BELOW GIANT WMX TECHNOLOGIES INC AND NO 2 BFI COULD NOW BE BECOMING CANDIDATES FOR ACQUISITIONS OR MERGERS WESTERN WASTE SHARES JUMPED LATE LAST MONTH AFTER THE COMPANY DISCLOSED THAT IT WAS IN VERY PRELIMINARY DISCUSSIONS WITH OTHER COMPANIES OVER A POSSIBLE COMBINATION ANALYSTS HAD BEEN EXPECTING WESTERN WASTE MIGHT FETCH 18 PERHAPS 20 AT THE HIGH END IF A DEAL MATERIALIZED IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WESTERN WASTE SHARES CLIMBED 3 OR 18 TO 20 BFI SHARES DIPPED 125 TO 23625 AMID SOME SPECULATION THAT THE PREMIUM IT AGREED TO IS TOO RICH THEY WAY WAY OVERPAID IN TERMS OF THE CONVENTIONAL RULE OF THUMB FOR VALUING ACQUISITIONS OR OF THE STRATEGIC VALUE OF THE PURCHASE OPPENHEIMER & CO ANALYST DOUGLAS R AUGENTHALER SAID IN AN INTERVIEW THROUGH THE FISCAL NINE MONTHS ENDED MARCH 31 WESTERN WASTE HURT BY 182 MILLION IN CHARGES REPORTED A LOSS OF 52 MILLION OR 38 CENTS A SHARE ON REVENUE OF 1725 MILLION BFI ABOUT 15 TIMES AS BIG REPORTED NET INCOME OF 1444 MILLION OR 85 CENTS A SHARE ON REVENUE OF 329 BILLION FOR ITS FISCAL NINE MONTHS ENDED JUNE 30 BFI'S RESULTS INCLUDED A 27 MILLION CHARGE BFI WHICH OPERATES NATIONWIDE AND IN A NUMBER OF INTERNATIONAL MARKETS HAD BEEN IDENTIFIED AS THE MOST LIKELY BUYER FOR WESTERN WASTE THAT IS BECAUSE BFI HASN'T MUCH PRESENCE IN SOUTHERN CALIFORNIA IN PART BECAUSE ITS GIANT SUNSHINE CANYON LANDFILL IN LOS ANGELES COUNTY HAS BEEN SHUT FOR TWO YEARS BECAUSE OF DIFFICULTIES IN GETTING A LICENSE RENEWED BFI YESTERDAY CALLED THE PLANNED ACQUISITION A SIGNIFICANT EXPANSION OF ITS CORE WASTE SERVICES BUSINESS ESPECIALLY IN THE SOUTHERN CALIFORNIA MARKET THE HOUSTON COMPANY SAID IT EXPECTS TO ISSUE ABOUT 174 MILLION SHARES OR A 92 STAKE TO EFFECT THE PURCHASE THE ACQUISITION TO BE TREATED AS A POOLING OF INTERESTS IS SUBJECT AMONG OTHER THINGS TO APPROVAL FROM REGULATORS AND WESTERN WASTE HOLDERS DISCLOSURE OF THE WESTERN WASTE DEAL SENT THE SHARES OF MANY SMALLERCAPITALIZED WASTEINDUSTRY COMPANIES HIGHER USA WASTE SERVICES INC ROSE 1125 ON THE BIG BOARD TO 13625 MIDAMERICAN WASTE INDUSTRIES SYSTEMS INC CLIMBED 625 CENTS TO 1025 ON THE BIG BOARD AND CHAMBERS DEVELOPMENT CO ROSE 25 CENTS TO 4 ON THE AMERICAN STOCK EXCHANGE 9309030110 930903 POLITICS & POLICY DUELING INITIATIVES NAFTA VS HEALTH CARE ORGANIZED LABOR'S DISTASTE FOR TRADE PACT ECLIPSES ITS SUPPORT FOR CLINTON BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUST AFTER LABOR DAY FRANK GARRISON THE HEAD OF 700000 MICHIGAN AFLCIO MEMBERS IS SUPPOSED TO BECOME A KEY PITCHMAN FOR PRESIDENT CLINTON'S EFFORTS TO SELL HIS CONTROVERSIAL AND COSTLY OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM BUT RIGHT NOW MR GARRISON IS TOO STEAMED AT THE FIRST UNIONBACKED PRESIDENT IN A DECADE TO TALK HEALTH CARE THE PROBLEM IS THE WHITE HOUSE'S CONCURRENT CAMPAIGN TO PASS THE NORTH AMERICAN FREE TRADE AGREEMENT A PACT THAT UNION LEADERS ARGUE WILL BE THE DOWNFALL OF AMERICAN WORKERS IT'S AN ISSUE SO STRONGLY FELT IN THE LABOR MOVEMENT THAT NOT A SINGLE MAJOR UNION IS BREAKING AWAY TO BACK THE ACCORD I THINK THIS ADMINISTRATION IS MAKING A MAJOR MAJOR TACTICAL ERROR WE OWE IT TO THE PRESIDENT TO DEFEAT IT MR GARRISON FUMES HE SUMS UP MR CLINTON'S TROUBLES THIS WAY I THINK THE WORKERS WILL BE SO DAMN ANGRY OVER NAFTA THAT YOU'LL HAVE A HARD TIME CONVINCING THEM TO SUPPORT HIM ON ANYTHING ELSE THAT ANYTHING ELSE UNFORTUNATELY FOR MR CLINTON MAY WELL BE THE CENTERPIECE OF HIS ADMINISTRATION HEALTHCARE REFORM FOR MR CLINTON THE PROBLEM IS ONE OF CONTINUOUSLY SHIFTING COALITIONS NAFTA IS A DARLING OF REPUBLICANS THE BUSINESS COMMUNITY AND CONSERVATIVE DEMOCRATS HEALTH CARE FOR NOW AT LEAST IS CHAMPIONED MOSTLY BY UNIONS AND OTHER MEMBERS OF THE LIBERAL WING OF THE DEMOCRATIC PARTY IN WASHINGTON INSIDERS HAVE STARTED CALLING THAT ROTATING DEMAND FOR SUPPORT THE CIRCULAR FIRING SQUAD FOR UNION OFFICIALS BEING ASKED TO BACK CLINTON AT EACH TURN IT'S TROUBLING ORGANIZED LABOR HAS GATHERED AT LEAST 4 MILLION TO SELL THE HEALTHCARE PLAN SAYS JOHN SWEENEY PRESIDENT OF THE SERVICE EMPLOYEES INTERNATIONAL UNION WHICH HAS LED THE FIGHT FOR UNIVERSAL HEALTH COVERAGE BUT UNION OFFICIALS ARE BEGINNING TO WORRY THAT SOME OF THE FUNDS WILL BE SPENT FIGHTING NAFTA THE PRACTICAL PROBLEM IS WHAT RESOURCES WE HAVE LEFT SAYS DANIEL DUKE MCVEY PRESIDENT OF THE MISSOURI AFLCIO IF WE HAVE X' AMOUNT OF RESOURCES AND WE SPEND IT FIGHTING NAFTA THERE MIGHT BE NO MORE BREAD LEFT IN THE BASKET ON LABOR DAY PARADES AROUND THE COUNTRY WILL SPORT SIGNS AND BALLOONS HURRIEDLY SENT OUT THIS WEEK TO 700 LOCAL LABOR BODIES URGING TELL CONGRESS NO NAFTA AND DON'T SEND MY JOB TO MEXICO OBSERVES AFLCIO PRESIDENT LANE KIRKLAND IT WOULD HAVE BEEN MUCH BETTER IF WE COULD HAVE GONE FORWARD IN A POSITIVE WAY ON THE HEALTHCARE PROGRAM ADMINISTRATION OFFICIALS ACKNOWLEDGE THE SWERVING THIN LINE THEY HAVE TO WALK FOR THE NEXT FEW MONTHS BUT THEY CONTEND THEY CAN KEEP THEIR FRIENDS YOU CAN HAVE A SERIOUS DISAGREEMENT AND NOT RUIN A RELATIONSHIP ARGUES WILLIAM DALEY THE CHICAGO LAWYER WITH UNION TIES WHO WAS BROUGHT IN TO HEAD THE WHITE HOUSE'S NAFTA SALES EFFORT PRIVATELY ADMINISTRATION OFFICIALS CONTEND THAT ORGANIZED LABOR IS SO EAGER TO GET HEALTHCARE REFORM THAT THE MOVEMENT WILL SIGN ON WITH ZEAL NO MATTER WHAT NAFTA BRINGS INDEED TAKING HEALTHCARE ISSUES OFF THE BARGAINING TABLE AS GOVERNMENTMANDATED MINIMUM BENEFITS WOULD DO WOULD ALLOW UNIONS TO FOCUS NEGOTIATIONS ON WAGES AND JOB SECURITY BUT THE PROBLEMS FOR THE WHITE HOUSE ARE AT THE RANKANDFILE LEVEL WHERE MANY BLUECOLLAR WORKERS ARE EVEN MORE AVIDLY OPPOSED TO NAFTA THAN THEIR UNION LEADERSHIP INDEED NAFTA OPPONENTS OFTEN CAST THEIR ARGUMENTS AS A DISPUTE BETWEEN WASHINGTON ELITISTS AND AVERAGE AMERICANS THE PROPONENTS OF NAFTA ARE VERY MUCH INSIDETHEBELTWAY ACTORS BUT JOBS AREN'T LOST INSIDE THE BELTWAY THEY ARE LOST IN PEORIA OR GRAND RAPIDS SAYS JIM JONTZ WHO IS RUNNING THE CITIZENS TRADE CAMPAIGN AN ANTINAFTA LOBBYING GROUP FUNDED IN PART BY UNIONS MR JONTZ IS HARDLY A STRANGER TO THE BELTWAY HIMSELF UNTIL HE LOST A REELECTION RACE LAST YEAR HE WAS A DEMOCRATIC CONGRESSMAN FROM INDIANA SOME CLINTON CONFIDANTS ARGUE THAT THE PRESIDENT SHOULD DEAL WITH ORGANIZED LABOR HEAD ON CLINTON SHOULD MAKE IT CLEAR HE WILL FIGHT THE UNIONS LIKE HELL ON NAFTA CONTENDS AL FROM PRESIDENT OF THE DEMOCRATIC LEADERSHIP COUNCIL A GROUP OF CENTRIST DEMOCRATS IF THEY WANT TO OPPOSE HIM ON NAFTA I'D LOOK FOR LEVERAGE POINTS IN THEIR LEGISLATIVE AGENDA AND I'D USE THEM ADMINISTRATION OFFICIALS SO FAR HAVE BEEN UNWILLING TO TAKE SUCH A CONFRONTATIONAL APPROACH INSTEAD OFFICIALS SUCH AS US TRADE REPRESENTATIVE MICKEY KANTOR HAVE BEEN HUDDLING WITH UNION LEADERS IN HOPES OF SWAYING THEM INTO AT LEAST SILENCE AND POSSIBLY EVEN TEPID SUPPORT IN THE MEANTIME THOUGH AND MUCH TO THE ADMINISTRATION'S CHAGRIN THE PUNCHES ARE BEING PULLED ON HEALTH CARE INSTEAD FOR EXAMPLE THE UNITED AUTO WORKERS HOTLINE A TOLLFREE NUMBER THAT ALERTS UNION MEMBERS TO MAJOR LOBBYING ISSUES OPENS ITS RECORDING WITH A TRUMPET FANFARE AND AN URGENT MESSAGE TO CALL REPRESENTATIVES ON THE STRIKER REPLACEMENT BILL AND ON NAFTA DECRIED AS SETTING UP THE US MANUFACTURING BASE FOR THE LOSS OF THOUSANDS OF GOODPAYING JOBS THE TAPE NEVER MENTIONS HEALTH CARE SEE RELATED STORY TOP WHITE HOUSE OFFICIALS CLASH AS TWO AGENDAS COMPETE FOR PRIORITY WSJ SEP 3 1993 9309030109 930903 NYNEX TO BUY CELLULAR ASSETS NEW YORK NYNEX CORP SAID ITS NYNEX MOBILE COMMUNICATIONS CO UNIT SIGNED A LETTER OF INTENT TO ACQUIRE THE NORTHEASTERN CELLULAR PROPERTIES OF CONTEL CELLULAR INC A MAJORITYOWNED UNIT OF GTE CORP TERMS WEREN'T DISCLOSED 9309030108 930903 REVIEW & OUTLOOK EDITORIAL IN BOSNIA WHY ALL THE CONCERN ABOUT GETTING BOGGED DOWN IN A BOSNIAN QUAGMIRE BOSNIA IS ALREADY A QUAGMIRE WITH THE UNITED STATES THE EUROPEANS AND THE UNITED NATIONS CLEARLY AND COMPLETELY BOGGED DOWN WITNESS THE BREAKDOWN IN GENEVA THIS WEEK OF THE NEGOTIATIONS TO PARTITION THE BOSNIAN MUSLIMS INTO SAFE HAVENS BUT THE DIPLOMATS WILL SLOG ON THAT IS BECAUSE NO ONE IN THE WEST IS WILLING TO SIMPLY PULL DOWN THE SHADES AND WALK AWAY FROM SARAJEVO INSTEAD WE STAY TRYING TO NEGOTIATE WHAT WE ALL KNOW IS NOT NEGOTIABLE WITH PARTIES WHOM WE KNOW HAVE NO INTENTION OF HONORING ANYTHING THAT WE NEGOTIATE STILL WE WON'T CUT LOOSE OF SARAJEVO WHY NOT BECAUSE NEARLY ALL SERIOUS PEOPLE IN THE WEST INSTINCTIVELY UNDERSTAND THAT THE STAKES IN BOSNIA ARE IMPORTANT AND COMPELLING THE HUMANITARIAN STAKE THE ONE WE SEE ON TV IS COMPELLING AN AGGRESSOR WHO SLAUGHTERS CIVILIAN POPULATIONS AND DEMOLISHES A NATION'S HERITAGE RUBS WESTERN SENSIBILITIES THE WRONG WAY BUT SENSITIVE WESTERNERS AREN'T THE ONLY ONES WATCHING THERE ARE PEOPLE LIKE SLOBODAN MILOSEVIC AROUND THE FORMER SOVIET UNION IN AFRICA IN THE MIDDLE EAST AND IN ASIA THEY HOPE THE WEST WALKS AWAY FROM SARAJEVO SO THAT THEY CAN GET ON WITH THE SLAUGHTER OF THEIR OWN ENEMIES CONCERNED WESTERN STATESMEN KNOW THE ODDS ARE STRONG THAT SOME OF THESE SLAUGHTERS WILL SUCK THEM INTO THE VORTEX AND WILL UNDENIABLY INVOLVE THE WEST'S INTERESTS THOSE INTERESTS MAY BE ECONOMIC BUT IF THE PRACTICE OF SLAUGHTER AGAINST RELATIVELY DEFENSELESS PEOPLE WERE TO SPREAD WIDELY ENOUGH WITH NO RESPONSE FROM STRONGER NATIONS THAT MIGHT ALSO SHAKE THE WEST'S CONFIDENCE IN ITS OWN CIVILIZING DEMOCRATIC SYSTEM ETHNIC CLEANSING AFTER ALL ISN'T ADVOCATED IN THE WRITINGS OF ARISTOTLE LOCKE OR JEFFERSON WHO IN SHORT DOES THE FUTURE BELONG TO BOTH HISTORY AND AN UNCERTAIN FUTURE ARE THE REASONS THE WEST WON'T WALK AWAY FROM BOSNIA HOWEVER HAPLESS ITS STATESMEN'S EFFORTS TO NEGOTIATE WHAT THEY CALL A PEACE ON THIS PAGE YESTERDAY JUST AS THE LATEST NEGOTIATION COLLAPSED IN GENEVA WE PUBLISHED AN OPEN LETTER TO PRESIDENT CLINTON ON THE BOSNIAN CONFLICT BY A POLITICALLY DIVERSE GROUP SEE RELATED ARTICLE WHAT THE WEST MUST DO IN BOSNIA WSJ SEPT 2 1993 YOU MIGHT NOTE THAT BEYOND SUCH SIGNERS AS MAGGIE THATCHER GEORGE SHULTZ THE EDITORS OF THE NEW REPUBLIC AND NOBEL LAUREATE JOSEPH BRODSKY THE SIGNERS INCLUDED TURKISH AND IRAQI DEMOCRATS THIS MEANS THAT THE BEST PEOPLE IN THESE PIVOTAL DEVELOPING NATIONS WANT TO ALIGN THEMSELVES WITH OUR VALUES IN THE WEST RATHER THAN WITH THE LAW OF THE JUNGLE THE OPEN LETTER ORGANIZED BY THE AMERICAN ENTERPRISE INSTITUTE AND STRATEGIST ALBERT WOHLSTETTER CLEARLY REFLECTS AN IMPATIENCE WITH THE INABILITY OF THE WEST'S LEADERSHIP TO SHAPE A COHERENT RESPONSE TO SERBIAN ETHNIC CLEANSING POINTEDLY THREE STATE DEPARTMENT OFFICIALS HAVE RESIGNED IN DISGUST OVER THE INEFFECTUALITY OF US POLICY THESE RESIGNATIONS DESERVE MORE ILLUMINATION THEY AT LEAST SUGGEST SHARP INTERNAL ARGUMENTS INSIDE THE ADMINISTRATION OVER OUR BOSNIA POLICY ON MONDAY PRESIDENT CLINTON SAID HE WOULD COMMIT US GROUND TROOPS TO A PEACEKEEPING MISSION IF A NEGOTIATED AGREEMENT ON BOSNIA IS FAIR AND ENFORCEABLE BECAUSE THOSE WORDS DEFY DEFINITION MR CLINTON HAS ARTICULATED A NONPOLICY THEN YESTERDAY MR CLINTON SAID THAT IF THE SERBS AND CROATS AGAIN ATTACKED BOSNIAN CITIES THE NATO MILITARY OPTION IS VERY MUCH ALIVE THIS INVOLVES AIR STRIKES BUT ALSO A BIZARRE CONSULTATION PROCEDURE THROUGH LEVELS OF THE NATO BUREAUCRACY NOT TO MENTION THE VETO OVER THE INITIAL ENGAGEMENT THAT WAS GIVEN TO UN SECRETARY BOUTROSGHALI BUT STILL MR CLINTON MAKES THE POINT THE WEST CAN'T WALK AWAY FROM SARAJEVO SET AGAINST THE DREADFUL PERFORMANCE ON BOSNIA OF THE WEST'S LEADERS WE CAN UNDERSTAND AT THIS LATE STAGE IN THE WAR THAT THE GENERAL PUBLIC IN THE UNITED STATES AND EUROPE IS NERVOUS ABOUT THEIR LEADERS' ABILITY TO SUSTAIN A COURSE OF MILITARY ACTION BUT WE SUSPECT THAT MOST PEOPLE ALSO CAN'T BELIEVE THAT THE WEST IS TRULY UTTERLY HELPLESS AGAINST THE SERBIAN CLEANSERS THE SHOWSTOPPER OF COURSE IS FORCE THAT OPTION NOW PARALYZES WESTERN POLICY MAKERS EUROPEANS SIMPLY WON'T THINK ABOUT USING IT THEY WANT THE AMERICANS TO DO THEIR THINKING FOR THEM BUT THE AMERICANS AT LEAST THE ONES PREVAILING INSIDE THE CLINTON ADMINISTRATION DON'T WANT TO THINK SERIOUSLY ABOUT FORCE EITHER INSTEAD THEY ARE THINKING ABOUT A FUTURE IN WHICH THE US MAINLY PARTICIPATES IN UNITED NATIONS PEACEKEEPING OPERATIONS WHICH FOR NOW APPEARS TO BE THE WORLD'S LEADING OXYMORON REFUSING TO THINK SERIOUSLY ABOUT FORCE IS DANGEROUS THE WORLD'S PIRATES MILOSEVIC SADDAM WARLORD AIDID LIKE FORCE AND IF UNRESISTED SURELY WILL SEEK ACCESS TO BIGGER AND MORE DESTRUCTIVE FORCE LIKE SADDAM'S NUCLEAR BOMB FACTORIES BUT WHAT THE CIVILIZED WORLD LEARNED IN THE GULF WAR TO ITS SEEMING SURPRISE WAS THAT ITS ARMIES HAD ACTUALLY DEVELOPED SOPHISTICATED COUNTERFORCE WEAPONRY NOTABLY IN THE AREA OF AIR POWER TARGET IDENTIFICATION AND GUIDANCE SYSTEMS ACCORDINGLY THE CENTRAL PROPOSAL OF THE OPEN LETTER TO MR CLINTON IS THAT THE WEST SHOULD USE ITS SOPHISTICATED AIR POWER TARGETED AT THE SOURCES OF SERBIAN ATTACK AS A DETERRENT TO MORE SERBIAN ATTACKS THE PROPOSAL ADDS THAT USING OUR SUPERIOR AIR POWER WOULD LEAVE A MUCH SMALLER AND MORE TRANSIENT ROLE FOR GROUND FORCES THIS IN TURN WOULD GIVE ARMED BOSNIANS WHO STILL HAVE AN ARMY A LEGITIMATE CHANCE TO DEFEND THEIR CITIES AND VILLAGES THIS DOESN'T SOUND TO US LIKE A QUAGMIRE IT SOUNDS TO US LIKE GIVING SERIOUS THOUGHT TO LETTING THE BOSNIANS FIGHT BACK IF WE WON'T DO THAT WE SHOULD WALK AWAY FROM BOSNIA AND IF CENTURIES OF CIVILIZATION WON'T ALLOW US TO WALK AWAY WE SHOULD FIND BETTER LEADERSHIP THAN WHAT WE'VE GOT NOW 9309030107 930903 POLITICS & POLICY DUELING INITIATIVES NAFTA VS HEALTH CARE TOP WHITE HOUSE OFFICIALS CLASH AS TWO AGENDAS COMPETE FOR PRIORITY BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN WAS STUNNED RECENTLY TO RECEIVE A PHONE CALL FROM THE WHITE HOUSE TELLING HIM THAT FIRST LADY HILLARY RODHAM CLINTON WAS MAD AT HIM THE REASON FOR HER ANGER MR BENTSEN WAS TOLD WAS THAT MRS CLINTON THE OVERSEER OF HEALTHCARE PLANNING FELT THAT THE SECRETARY'S STRONG SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WAS INTERFERING WITH HER EFFORTS TO PROMOTE PRESIDENT CLINTON'S PLANNED OVERHAUL OF THE HEALTHCARE SYSTEM TREASURY OFFICIALS INSIST THAT MR BENTSEN STRONGLY SUPPORTS HEALTHCARE REFORM AND THAT HE AND MRS CLINTON GET ALONG FINE BENTSEN IS A HUGE SUPPORTER OF HEALTH CARE AND THE DEGREE TO WHICH THIS NATION HAS TO COME TO GRIPS WITH THE EXPLODING COSTS OF HEALTH CARE SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN BUT THE STRAIN OF TACKLING BOTH THE HEALTH AND TRADE ISSUES AT THE SAME TIME IS SPARKING DISSENSION AND BACKBITING BETWEEN THE OFFICIALS CHARGED WITH DELIVERING ON EACH AND THOSE TENSIONS HAVE INVADED THE HIGHEST ECHELONS OF THE ADMINISTRATION OTHER PRESIDENTS HAVE SOMETIMES SUCCESSFULLY MOVED SIMULTANEOUSLY ON A NUMBER OF MAJOR CONTROVERSIAL ISSUES BUT IT'S A DIFFICULT FEAT AND MR CLINTON HAS YET TO SHOW THAT HE AND HIS TEAM ARE UP TO THE TASK MEANWHILE BY NOT SETTING A CLEAR PRIORITY THE PRESIDENT HAS RENEWED COMPLAINTS THAT HE IS UNABLE OR UNWILLING TO PROVIDE PRESIDENTIAL LEADERSHIP EVEN OVER HIS OWN ADMINISTRATION AND DEMOCRATIC PARTY AS A RESULT MISUNDERSTANDINGS AND CLASHES OF PRIORITIES HAVE BECOME EPIDEMIC AT WHITE HOUSE COMMUNICATIONS MEETINGS HEALTHCARE AIDES JEFF ELLER AND ROBERT BOORSTIN REPEATEDLY COMPLAINED THAT THE EFFORTS OF NAFTA ADVOCATES TO PROMOTE THE TRADE PACT WERE HURTING ADMINISTRATION EFFORTS TO BUILD SUPPORT FOR THE HEALTH PROGRAM TRADE AND ECONOMIC OFFICIALS MEANWHILE ARE ESPECIALLY FRUSTRATED WITH HEALTH CZAR IRA MAGAZINER WHOM THEY ACCUSE OF BEING SECRETIVE AND EXCESSIVELY TURFCONSCIOUS TREASURY OFFICIALS FOR INSTANCE HAVE URGED THAT DEPUTY SECRETARY ALTMAN MAKE SURE THAT MRS CLINTON HAS HEARD THEIR CONCERNS ABOUT FINANCING THE PLAN AND ITS IMPACT ON THE ECONOMY THEY ARE CONVINCED THAT MR MAGAZINER HASN'T TOLD HER HEALTH AIDES DISPUTE SUCH CHARGES WE HAVE HAD THE BEST WORKING COOPERATION BETWEEN AGENCIES IN THE WHITE HOUSE IN THE HISTORY OF DEVELOPMENT OF ANY DOMESTIC POLICY SAYS MR BOORSTIN MR ALTMAN FOR HIS PART SAYS THAT TREASURY IS QUITE PLEASED WITH THE DIRECTION IN WHICH HEALTHREFORM PLANNING IS HEADED NONETHELESS THE SNIPING HAS BECOME SO BAD BETWEEN THE HEALTH AND NAFTA CAMPS THAT JUST BEFORE THE PRESIDENT WENT ON VACATION WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY AND PRESIDENTIAL COUNSELOR DAVID GERGEN MET SEPARATELY WITH ADVOCATES OF EACH ISSUE IN AN EFFORT TO END THE BICKERING WITHIN THE ADMINISTRATION THE NAFTA CAMP IS MOSTLY COMPRISED OF BUSINESSORIENTED ADVISERS MESSRS MCLARTY AND GERGEN CHAIRMAN ROBERT RUBIN OF THE NATIONAL ECONOMIC COUNCIL AND HIS DEPUTY BOWMAN CUTTER THE HEALTH CAMP MEANWHILE INCLUDES MANY OF MR CLINTON'S POLITICAL ADVISERS WHO SEE THE POTENTIAL GAINS TO MR CLINTON IN THE ISSUE CONSULTANTS JAMES CARVILLE AND PAUL BEGALA PRESIDENTIAL POLLSTER STAN GREENBERG AND MEDIA ADVISER MANDY GRUNWALD IN THE MIDDLE IS PRESIDENTIAL ADVISER GEORGE STEPHANOPOULOS MR STEPHANOPOULOS IS BY NATURE A FREE TRADER DESPITE HIS CLOSE TIES WITH HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI HIS FORMER BOSS AND A FOE OF THE TREATY AS IT NOW STANDS BUT ASSOCIATES SAY HE SEES THE POLITICAL RISKS OF NAFTA AS TOO GREAT FOR THE PRESIDENT HE FEARS THAT PUSHING THE PACT WILL SPLINTER THE PARTY AND HAMPER THE ADMINISTRATION'S RELATIONSHIP WITH DEMOCRATS IN CONGRESS IN MEETINGS HE HAS ASSERTED THAT THE FOCUS ON THE POTENTIAL LOSS OF JOBS FROM THE PACT WILL CONFLICT WITH MR CLINTON'S CORE MESSAGE THAT HIS ADMINISTRATION WILL CREATE JOBS IN THE FACE OF SUCH ARGUMENTS PRONAFTA FORCES HAVE GENERALLY BEEN PLEASED WITH MR CLINTON'S WILLINGNESS TO TAKE ON THE STRUGGLE BUT THEY LIKE THE HEALTHCARE ADVOCATES HAVE BEEN FRUSTRATED AT TIMES FOR INSTANCE WITH ROSS PEROT GOING ON THE ATTACK AGAINST THE PACT NEXT WEEK AND OPPOSITION COMPLAINTS SCHEDULED TO BE AIRED AT CONGRESSIONAL HEARINGS SOME NAFTA SUPPORTERS HAD SOUGHT TO MOUNT AN EQUALLY HIGHPROFILE ADMINISTRATION COUNTERATTACK BUT SUCH A CAMPAIGN WOULD HAVE INTERFERED WITH THE PRESIDENT'S REINVENTING GOVERNMENT INITIATIVE WHICH IS TO BE LAUNCHED ON TUESDAY INSTEAD THE ADMINISTRATION YESTERDAY RELEASED A 74PAGE REBUTTAL OF MR PEROT'S NEWLY PUBLISHED JEREMIAD AGAINST NAFTA SAVE YOUR JOB SAVE OUR COUNTRY IN A SESSION WITH REPORTERS US TRADE REPRESENTATIVE MICKEY KANTOR CRITICIZED MR PEROT AND FELLOW NAFTA FOES PAT BUCHANAN AND JERRY BROWN MR KANTOR ALSO SOUGHT TO LINK NAFTA TO HEALTH CARE AS TWO PARTS OF AN ADMINISTRATION PLAN TO IMPROVE US COMPETITIVENESS NAFTA STANDING ALONE WON'T SOLVE EVERY PROBLEM WE HAVE HE SAID NO TRADE AGREEMENT WILL SEE RELATED STORY ORGANIZED LABOR'S DISTASTE FOR TRADE PACT ECLIPSES ITS SUPPORT FOR CLINTON WSJ SEP 3 1993 9309030106 930903 CANADIAN POLITICIAN IS ORDERING A CUTBACK IN HELICOPTER PROGRAM OTTAWA CANADIAN PRIME MINISTER KIM CAMPBELL GEARING UP FOR AN ELECTION CAMPAIGN ANNOUNCED A BILLION CANADIAN DOLLAR US754 MILLION CUTBACK IN AN UNPOPULAR HELICOPTER PROCUREMENT PROGRAM THE HELICOPTER DECISION IS THE LATEST MOVE BY THE PRIME MINISTER TO PUT SOME DISTANCE BETWEEN HER ADMINISTRATION AND THE GOVERNMENT OF FORMER PRIME MINISTER BRIAN MULRONEY WHO RESIGNED IN JUNE THE EH101 HELICOPTERS WERE ORDERED BY THE MULRONEY GOVERNMENT LAST YEAR FROM A GROUP OF COMPANIES LED BY EH INDUSTRIES LTD AND PARAMAX ELECTRONICS LTD A MONTREAL SUBSIDIARY OF UNISYS CORP BLUE BELL PA EH INDUSTRIES IS JOINTLY OWNED BY WESTLAND GROUP OF BRITAIN AND AGUSTA SPA OF ITALY MS CAMPBELL WHO EARLIER THIS YEAR WAS MR MULRONEY'S DEFENSE MINISTER HAD VIGOROUSLY DEFENDED THE HELICOPTER PURCHASE AS AN ESSENTIAL ACQUISITION FOR THE ARMED FORCES BUT YESTERDAY SHE SAID SHE HAD BEEN OBLIGED TO REASSESS THE C58 BILLION HELICOPTER PROGRAM BECAUSE OF THE GOVERNMENT'S BUDGET DEFICIT WHICH IS EXPECTED TO TOTAL C326 BILLION IN THE CURRENT YEAR THE CUTBACK WILL REDUCE TO 43 FROM 50 THE NUMBER OF EH101S TO BE PURCHASED THE HELICOPTERS WHICH HAVE A RANGE OF 550 MILES ARE TO BE USED FOR ANTISUBMARINE PATROLS AND FOR SEARCH AND RESCUE MISSIONS THEY WILL REPLACE 30YEAROLD SEA KING AND LABRADOR HELICOPTERS OPPOSITION POLITICAL PARTIES AND SOME PROMINENT MEMBERS OF MS CAMPBELL'S PROGRESSIVE CONSERVATIVE PARTY HAVE CALLED FOR CANCELLATION OF THE HELICOPTER CONTRACT SAYING IT IS A MISUSE OF SCARCE GOVERNMENT FUNDS MS CAMPBELL IS TRYING TO PUT SOME COSMETIC CHANGES ON WHAT IS BASICALLY A WASTEFUL PROGRAM SAID AUDREY MCLAUGHLIN LEADER OF THE NEW DEMOCRATIC PARTY THE PRIME MINISTER NEXT WEEK IS EXPECTED TO CALL AN ELECTION FOR OCT 25 EARLIER THIS WEEK SHE RESTORED FUNDING FOR A PROGRAM THAT HAD ALLOWED WOMEN'S GROUPS AND OTHERS TO CHALLENGE IN THE COURTS THE CONSTITUTIONALITY OF LAWS AFFECTING THEM THE FUNDING HAD BEEN ELIMINATED IN THE GOVERNMENT'S 1992 BUDGET 9309030105 930903 BUSINESS BRIEF FLETCHER CHALLENGE LTD NEW ZEALAND CONCERN SAYS EXPORTS ROSE 3 FOR YEAR NEW ZEALAND FORESTRY AND RESOURCES CONGLOMERATE FLETCHER CHALLENGE LTD SAID ITS EXPORTS FROM NEW ZEALAND INCREASED 3 TO 171 BILLION NEW ZEALAND DOLLARS 9441 MILLION IN THE 12 MONTHS ENDED JUNE 30 THE LEVEL OF EXPORTS ROSE FROM NZ BILLION IN THE YEAREARLIER PERIOD HUGH FLETCHER CHIEF EXECUTIVE OFFICER SAID THE RISE IN THE COMPANY'S EXPORTS IS PRIMARILY BECAUSE OF HIGHER SALES TO ASIAN COUNTRIES FLETCHER CHALLENGE SENT 37 OF ITS EXPORTS TO ASIAN COUNTRIES AT A VALUE OF NZ637 MILLION 3517 MILLION IN THE LATEST PERIOD THE COMPANY'S EXPORTS TO JAPAN IN THE LATEST PERIOD WERE NZ277 MILLION TO SOUTH KOREA NZ98 MILLION TO TAIWAN NZ79 MILLION TO HONG KONG NZ45 MILLION AND TO OTHER ASIAN COUNTRIES NZ138 MILLION THE RISE IN EXPORTS TO ASIAN MARKETS OFFSET A 17 FALL TO NZ527 MILLION IN EXPORTS TO AUSTRALIA THE LATEST TOTAL OF FLETCHER CHALLENGE'S EXPORTS INCLUDES NZ328 MILLION OF SOCALLED INDIRECT EXPORTS THAT WERE HANDLED FOR OTHER PARTIES THE TOTAL REPRESENTED 9 OF NEW ZEALAND'S EXPORT EARNINGS OVER THE PERIOD 9309030104 930903 INTERNATIONAL BRIEF RHONEPOULENC SA FIRSTHALF NET INCOME FELL BY 14 TO 1846 MILLION WITH PRIVATIZATION LOOMING AHEAD FRENCH STATECONTROLLED CHEMICAL AND DRUG GROUP RHONEPOULENC SA REPORTED THAT FIRSTHALF 1993 NET INCOME AFTER THE GOVERNMENT'S PROFIT SHARE FELL 14 TO 1075 BILLION FRANCS 1846 MILLION FROM 1243 BILION FRANCS A YEAR EARLIER REVENUE FOR THE FIRST HALF WAS 4003 BILLION FRANCS DOWN 59 FROM 4256 BILLION FRANCS A YEAR EARLIER OPERATING PROFIT FELL 16 TO 3375 BILLION FRANCS DUE TO A DILUTION LINKED TO THE STATE'S SALE OF A MINORITY STAKE EARLY THIS YEAR PERSHARE NET DROPPED 20 TO 427 FRANCS RHONEPOULENC CHAIRMAN JEANRENE FOURTOU REITERATED RECENT WARNINGS THAT GIVEN THE PREVAILING ECONOMIC DIFFICULTIES A DECLINE IN FULLYEAR RESULTS COULDN'T BE EXCLUDED MR FOURTOU SAID THE GROUP SHOULD BENEFIT FROM A STRENGTHENING OF THE US DOLLAR AND FROM LOWER INTEREST RATES BUT WITH DEMAND FOR CHEMICALS AND FIBERS WEAK AND HEALTHSECTOR GROWTH SLOWING IT IS LIKELY THAT RESULTS FOR THE FULL YEAR WILL BE LOWER THAN FOR 1992 HE WARNED 9309030103 930903 INTERNATIONAL BRIEF ROLLSROYCE PLC FIRM POSTS 55 RISE IN PROFIT FOR HALF SETS RIGHTS OFFER ROLLSROYCE PLC REPORTED A 55 JUMP IN PRETAX PROFIT FOR THE FIRST HALF AND THE BRITISH MAKER OF JET ENGINES ANNOUNCED PLANS FOR A 307 MILLION 4617 MILLION RIGHTS ISSUE PRETAX PROFIT ROSE TO 31 MILLION FROM 20 MILLION A YEAR EARLIER ROLLSROYCE CUT ITS INTERIM DIVIDEND TO TWO PENCE A SHARE FROM 255 PENCE BUT THE COMPANY FORECAST A FULLYEAR DIVIDEND OF FIVE PENCE A SHARE UNCHANGED FROM 1992 PROFIT ATTRIBUTABLE TO SHAREHOLDERS OR NET INCOME MORE THAN DOUBLED TO 22 MILLION FROM 9 MILLION REVENUE ROSE 7 TO 175 BILLION THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT ROLLSROYCE STOCK SLID 11 PENCE OR 67 TO 1525 PENCE ON THE LONDON EXCHANGE AS THE MARKET REACTED NEGATIVELY TO THE 1FOR4 RIGHTS ISSUE IN EXPLAINING THE DECISION TO LAUNCH THE ISSUE ROLLSROYCE OFFICIALS SAID THE COMPANY'S EXPANDING BUSINESS REQUIRES A LARGER CAPITAL BASE UNDER TERMS OF THE ISSUE EXISTING SHAREHOLDERS WILL HAVE THE RIGHT TO BUY ONE NEW SHARE PRICED AT 130 PENCE A SHARE FOR EVERY FOUR SHARES CURRENTLY HELD 9309030101 930903 MONEYFUND ASSETS PLUNGED 1252 BILLION IN THE LATEST WEEK WASHINGTON ASSETS AT MONEYMARKET MUTUAL FUNDS PLUNGED 1252 BILLION TO 57123 BILLION FROM A REVISED 58375 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 647 RETAIL MONEYMARKET MUTUAL FUNDS FELL BY 302 BILLION TO 38576 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 407 TAXABLE MONEYMARKET FUNDS FELL 273 BILLION TO 30338 BILLION AND ASSETS OF 240 TAXEXEMPT FUNDS FELL 290 MILLION TO 8238 BILLION ASSETS OF 270 INSTITUTIONAL MONEYMARKET FUNDS FELL 95 BILLION TO 18547 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 219 TAXABLE MONEYMARKET FUNDS FELL 922 BILLION TO 16445 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL 2788 MILLION TO 2102 BILLION 9309030100 930903 MEDIA THE ECONOMIST RUN BY A YANK THRIVES IN US BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ONE OF THE FASTESTGROWING PUBLICATIONS IN AMERICA LED BY A WOMAN CHIEF EXECUTIVE OFFICER FROM TEXAS THREW A PARTY CELEBRATING ITS 150TH BIRTHDAY LAST NIGHT HERE IN LONDON ITS HOME THE PUBLICATION IS THE ECONOMIST AND IT'S VERY MUCH IN VOGUE A CENTURY AND A HALF AFTER ITS PREMIER ISSUE IT REMAINS AS ENIGMATIC AS EVER A MAGAZINE THAT CALLS ITSELF A NEWSPAPER AND IT'S AGGRESSIVELY OLDFASHIONED WITH AN UNDYING FONDNESS FOR UNFLASHY DESIGN MONOTONOUS TYPOGRAPHY AND BLACKANDWHITE PHOTOGRAPHS IT HAS ARTICLES ON EVERYTHING FROM EUROPEAN MONETARY POLICY TO NIGERIAN ELECTIONS TO AMERICAN TASTES IN BEER TO THE PRICING OF COMPACT DISKS UNTIL RECENTLY WE NEVER APPEARED ON ANY COMPETITOR'S RADAR SCREEN AND THAT'S HOW WE PREFERRED IT SAYS THE ECONOMIST GROUP'S 46YEAROLD CEO MARJORIE SCARDINO BUT WE'RE BEGINNING TO BE TALKED ABOUT SHE SAYS ITS LOW PROFILE IS HISTORY SINCE 1985 ITS CIRCULATION HAS NEARLY DOUBLED TO 534000 EVEN AS INDUSTRY CIRCULATION HAS BEEN LITTLE BETTER THAN FLAT IT'S A VERY VERY HOT MAGAZINE SAYS WALTER STAAB CHAIRMAN OF SFM MEDIA CORP IN NEW YORK WHICH BUYS MAGAZINE SPACE FOR BIG ADVERTISERS MUCH OF THE HEAT PROPELLING THE DISTINCTLY BRITISH INSTITUTION WHOSE OFFICES OVERLOOK BUCKINGHAM PALACE IS COMING FROM THE US SINCE 1985 CIRCULATION IN THE US HAS MORE THAN DOUBLED TO 240000 FROM 100000 UK CIRCULATION MEANWHILE REMAINS AT 100000 MOREOVER THE ECONOMIST IS AMERICA'S FIFTHLEADING MAGAZINE IN NUMBER OF AD PAGES AHEAD OF TIME NEWSWEEK AND FORTUNE THOUGH ITS REVENUE IS LOWER THAN THAT OF THOSE MAGAZINES BECAUSE ITS AD RATES ARE LOWER LITTLE WONDER THE COMPETITION HAS TAKEN NOTICE THEY'RE A VERY WORTHY COMPETITOR SAYS JOHN PATTEN PRESIDENT OF MCGRAWHILL INC'S BUSINESSWEEK NOTING THAT BUSINESSWEEK'S CIRCULATION IS MUCH GREATER ABOUT 870000 IN THE US MR PATTEN ADDS THEY'RE NOT REALLY ON THE SAME RACETRACK AS US BUT WE'RE AWARE THAT THEY WANT TO BE TO BE SURE THE INVASION OF AMERICA IS A MAIN CONCERN OF ECONOMIST DIRECTORS IN LONDON WHEN THEIR LONGTIME CEO DAVID GORDON RESIGNED EARLY THIS YEAR TO TAKE A TOP JOB IN BRITISH TELEVISION ECONOMIST BOARD MEMBERS TURNED TO MS SCARDINO THE TEXAS NATIVE WHO IS THE MAGAZINE'S FIRST AMERICAN AND FIRST FEMALE CEO FRANK BARLOW MANAGING DIRECTOR OF PEARSON PLC WHICH OWNS THE FINANCIAL TIMES AND HALF OF THE ECONOMIST SAYS SHE WAS VIRTUALLY AN AUTOMATIC CHOICE AS HEAD OF THE MAGAZINE'S NEW YORK OFFICE SINCE 1985 MS SCARDINO HAD ORCHESTRATED ITS SUCCESSFUL MARCH INTO THE US BEFORE THAT SHE HAD WORKED AS A LAWYER AND PUBLISHER OF A SMALL NEWSPAPER THAT SHE AND HER HUSBAND FOUNDED IN GEORGIA AND THAT WON A PULITZER PRIZE IN 1984 ECONOMIST OFFICIALS ATTRIBUTE THEIR US SUCCESS TO A HUNGER IN AMERICA FOR MORE AND BETTER INTERNATIONAL NEWS AT A TIME WHEN AMERICAN READERS ARE BECOMING MORE INTERESTED IN INTERNATIONAL AFFAIRS A LOT OF AMERICAN PUBLICATIONS HAVE BECOME LESS INTERNATIONAL IN THEIR OUTLOOK SAYS RUPERT PENNANTREA LONGTIME EDITOR OF THE ECONOMIST WHO RECENTLY LEFT TO BECOME DEPUTY GOVERNOR OF THE BANK OF ENGLAND US PUBLISHERS DISPUTE THAT ASSERTION BUT WHILE THEIR PUBLICATIONS CORRAL FOREIGN STORIES INTO INTERNATIONAL SECTIONS THE ECONOMIST LIMITS AMERICAN COVERAGE TO A SIXPAGE SECTION THE SAME SIZE FOR DECADES AND OTHERWISE COVERS THE WORLD THAT DIFFERENCE IS CRUCIAL TO A LOT OF READERS AS A BANKING LAWYER I'M CONCERNED ABOUT THE ECONOMIES OF OTHER COUNTRIES ABOUT ATTEMPTS BY OTHER GOVERNMENTS TO REGULATE BUSINESS AND I DON'T FIND THAT IN ANY MAGAZINE EXCEPT THE ECONOMIST SAYS RALPH MOCK OF THE DALLAS FIRM OF STRASBURGER & PRICE A FEW HUNDRED MILES SOUTH AT TEXAS A&M UNIVERSITY SUSANNA FINNELL INSTRUCTS STUDENTS COMPETING FOR INTERNATIONAL SCHOLARSHIPS TO READ THE ECONOMIST TIME AND NEWSWEEK DON'T DO AS GOOD A JOB OF COVERING THE GLOBE SHE SAYS ALSO APPEALING TO MANY READERS IS THE ECONOMIST'S PENCHANT FOR EDITORIALIZING LIKE MOST EDITORIALS ITS NEWS STORIES ARE UNSIGNED AND LIKE EDITORIALS THEY TEND TO TAKE POSITIONS IN THE CURRENT ISSUE FOR INSTANCE A STORY ABOUT APPLE COMPUTER INC'S PROBLEMS IS FULL OF ASSERTIONS SUCH AS APPLE HAD ITS HEAD IN THE CLOUDS THE JOURNALISM OF THE ECONOMIST HAS A PARTICULAR FLAVOR THAT READERS LIKE SAYS MR GORDON THE FORMER CEO EXPLAINING THAT ALL THE ARTICLES TO A GREATER OR LESSER EXTENT ARE OPINIONIZING IN THE PURITANICAL 90S IT ISN'T SURPRISING THAT A MAGAZINE IS TRENDY THAT PROMISES KNOWLEDGE WHILE ESCHEWING FLASH ITS EDITOR EVEN SCREENS ALL ADS FOR BAD TASTE IT HELPS TO BE ABLE TO BOAST THE MOST ELITE DEMOGRAPHICS AMONG THE WORLD'S MAJOR MAGAZINES THE AVERAGE HOUSEHOLD INCOME OF AN ECONOMIST READER IS 160000 WORLDWIDE AND 198000 IN THE US THERE'S DEFINITELY A SNOBAPPEAL FACTOR SAYS MR MOCK ADDING IF I WANTED TO READ PEOPLE MAGAZINE I'D PUT IT BETWEEN THE COVERS OF THE ECONOMIST FOR ADVERTISERS REACHING THAT ELITE AUDIENCE PROVES AFFORDABLE BECAUSE ITS US CIRCULATION IS LOWER THAN THAT OF FORBES 755000 BUSINESSWEEK AND TIME 42 MILLION A FULLPAGE AD IN THE ECONOMIST COSTS 11600 COMPARED WITH 33840 AT FORBES 40700 AT BUSINESS WEEK AND 98300 AT TIME ACCORDING TO THE PUBLISHER'S INFORMATION BUREAU IN NEW YORK THE ECONOMIST GIVES ADVERTISERS THE CHANCE TO PUT ANOTHER TITLE ON THEIR LIST A PRESTIGIOUS ONE FOR RELATIVELY LITTLE MONEY SAYS MR STAAB WHO IN RECENT MONTHS HAS ORCHESTRATED FIRSTTIME BUYS IN THE ECONOMIST ON BEHALF OF TWO CUSTOMERS JP MORGAN & CO AND CHUBB CORP MOREOVER A VARIETY OF EDITIONS GIVES THE ADVERTISER THE OPTION OF PAYING ONLY FOR THOSE MARKETS IT WANTS TO REACH THE US EXPANSION DIDN'T HAPPEN BY ACCIDENT IN THE LATE 1970S WHEN TOTAL CIRCULATION STOOD AT 150000 THE ECONOMIST BEGAN PLOWING PROFITS INTO PROMOTIONS OVERSEAS WINNING MORE THAN 380000 READERS SINCE THEN ALMOST ALL FROM OUTSIDE THE UK BEING A PRIVATE COMPANY GAVE US THE BENEFIT OF INVESTING INTO PROMOTIONS SAYS MR BARLOW OF PEARSON THE STRATEGY HAS HELPED STRENGTHEN THE BOTTOM LINE PRETAX PROFIT HAS INCREASED SIXFOLD SINCE 1985 TO 18 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 WILL MS SCARDINO OR NEW EDITOR BILL EMMOTT FORMERLY THE PUBLICATION'S BUSINESS EDITOR CHANGE THE MAGAZINE AT A MAGAZINE THAT PROHIBITS BYLINES AND PROMOTES THE IDEA OF AN INSTITUTIONAL VOICE DISCUSSIONS ABOUT PERSONALITIES ARE TABOO BUT MS SCARDINO SAYS SHE INTENDS TO CONTINUE PURSUING A STRATEGY OF DIVERSIFICATION WHILE RUNNING THE NORTH AMERICAN OPERATION SHE ORCHESTRATED THE PURCHASES OF ROLL CALL A WEEKLY THAT COVERS CAPITAL HILL AND CFO MAGAZINE AS WELL AS STARTED A QUARTERLY CALLED TREASURY THE COMPANY ALSO HAS LAUNCHED SOME EUROPEAN MAGAZINES SUCH AS BUSINESS CENTRAL EUROPE AS A RESULT THE ECONOMIST NOW PROVIDES LESS THAN 70 OF TOTAL REVENUE BUT HER MAIN PRIORITIES CONTINUE TO BE THE EXPANSION OF THE ECONOMIST OVERSEAS AND THE MAINTENANCE OF ITS MARKET SHARE AT HOME WILL THE BRITISH ELITE ACCEPT A NATIVE OF TEXARKANSAS THE HEAD OF THE ECONOMIST THERE ARE PROBABLY PEOPLE HERE WONDERING HOW THE ECONOMIST COULD HAVE PICKED AN AMERICAN BUT THEY HAVEN'T SAID ANYTHING TO ME SHE SAYS FROM THIS SIDE OF THE ATLANTIC SHE STILL SEES AMERICA AS THE LAND OF OPPORTUNITY WHEN I JOINED IN 1985 EVERYONE SAID AMERICA'S CEILING IS 150000 SHE RECALLS WITH THE ECONOMIST NOW SELLING 90000 COPIES A WEEK MORE THAN THAT IN AMERICA I THINK WE'RE STILL A LONG WAY FROM THE CEILING SHE SAYS 9309030099 930903 MARKETING & MEDIA NBC TIMES MIRROR REACH PACT INVOLVING RETRANSMISSION FEES NEW YORK NBC REACHED AN AGREEMENT WITH TIMES MIRROR CO'S CABLE SYSTEM SUBSIDIARY ALLOWING THE CABLE OPERATOR TO CARRY THE PROGRAMMING OF NBCOWNED STATIONS FREE OF CHARGE IN EXCHANGE TIMES MIRROR AGREED TO PROVIDE A NEW NBC CABLE CHANNEL AMERICA'S TALKING TO AN UNDISCLOSED NUMBER OF ITS 12 MILLION SUBSCRIBERS IN THE US TIMES MIRROR CABLE TELEVISION INC WILL ALSO RENEW AND EXTEND CARRIAGE OF CNBC NBC'S BUSINESS CABLE CHANNEL AND WILL ALSO BE ABLE TO DISTRIBUTE A SPANISHLANGUAGE NBC NEWS CHANNEL THE DEAL IS THE SECOND ONE THAT NBC A UNIT OF GENERAL ELECTRIC CO HAS REACHED WITH A CABLE OPERATOR UNDER RETRANSMISSION CONSENT PROVISIONS OF THE 1992 CABLE ACT THE MEASURE ALLOWS TELEVISION STATIONS TO NEGOTIATE PROGRAMMING FEES WITH CABLE OPERATORS NBC PREVIOUSLY REACHED A DEAL WITH TIME WARNER INC'S CABLE SYSTEMS 9309030098 930903 FINANCING BUSINESS ULTIMATE ELECTRONICS INC ULTIMATE ELECTRONICS INC DENVER SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES THE CONSUMER ELECTRONICS RETAILER SAID IT ANTICIPATES A PRICE OF 8 TO 10 A SHARE THE OFFERING WILL BE MANAGED BY PIPER JAFFRAY INC ULTIMATE ELECTRONICS SAID IT WOULD USE THE PROCEEDS TO FINANCE EXPANSION TO PAY A DISTRIBUTION TO SHAREHOLDERS TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES 9309030097 930903 WHO'S NEWS ROCHESTER COMMUNITY SEES PATRIC'S DEPARTURE AS PRESIDENT DIRECTOR ROCHESTER NY LOWELL C PATRIC RESIGNED AS PRESIDENT AND DIRECTOR OF ROCHESTER COMMUNITY SAVINGS BANK CITING A STRONG DIFFERENCE OF OPINION WITH MANAGEMENT ABOUT HOW BEST TO MAXIMIZE SHAREHOLDER VALUE MR PATRIC'S DUTIES WILL BE PERMANENTLY ASSUMED BY RCSB'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LEONARD S SIMON AND MORE RESPONSIBILITIES WILL BE DELEGATED TO BUSINESS UNIT MANAGERS IN AN INTERVIEW MR PATRIC SAID I THINK WHEN MANAGEMENT AND YOU DISAGREE ABOUT HOW TO BEST MAXIMIZE SHAREHOLDER VALUE NEITHER OF YOU ARE NECESSARILY WRONG MR PATRIC 48 YEARS OLD AND A 25YEAR RCSB VETERAN DECLINED TO SAY WHETHER HE'D BEEN ASKED TO LEAVE THERE WAS A DIFFERENCE OF OPINION I THINK EVERYBODY'S MOTIVATION WAS WHAT WAS IN THE BEST INTEREST OF SHAREHOLDERS WHEREAS MOST BANKS STOCK TRADES AT A PREMIUM TO BOOK VALUE ROCHESTER HAS BEEN SELLING AT A DISCOUNT TO ITS BOOK VALUE OF ABOUT 18 A SHARE ACCORDING TO JOHN A CHEPAK VICE PRESIDENT OF RESEARCH AT THOMAS JONES ASSOCIATES IN ROCHESTER RCSB'S STOCK WAS QUOTED AT 14625 DOWN 25 CENTS IN LATE OVERTHECOUNTER TRADING YESTERDAY THE BANK HAD ASSETS OF 4 BILLION ON MAY 31 THE END OF ITS SECOND QUARTER 9309030096 930903 WHAT'S NEWS WORLDWIDE SYRIA SAID IT HOPED TO REACH A PRELIMINARY PEACE ACCORD WITH ISRAEL NEXT WEEK ANOTHER MIDEAST BREAKTHROUGH SUDDENLY LOOKED POSSIBLE WHEN THE SYRIANS SAID THEY HOPED TO REACH AN OUTLINE AGREEMENT WITH ISRAEL SOON ISRAEL'S CHIEF NEGOTIATOR WITH SYRIA CONFIRMED THERE HAD BEEN PROGRESS ON ISSUES THAT PREVIOUSLY SEEMED UNBRIDGEABLE AND SUDDENLY THIS WEEK THEY BECAME BRIDGEABLE THE RAPID DEVELOPMENTS OFFERED THE PROSPECT UNTHINKABLE EVEN A WEEK AGO THAT SYRIA JORDAN LEBANON AND THE PALESTINIANS MIGHT ALL SIGN OUTLINE PEACE ACCORDS DURING THE CURRENT ROUND OF WASHINGTON TALKS THAT END NEXT THURSDAY PLO LEADER ARAFAT DECLARED IN MOROCCO THE PALESTINIAN STATE IS WITHIN OUR GRASP SOON THE PALESTINIAN FLAG WILL FLY ON THE WALLS THE MINARETS AND THE CATHEDRALS OF JERUSALEM THE US BACKED BOSNIAN MUSLIMS' TERRITORIAL DEMANDS AND ISSUED A WARNING CHRISTOPHER CALLED ON SERBIA AND CROATIA TO YIELD TO DEMANDS FROM THE MUSLIMS FOR MORE LAND IN ORDER TO FIND A MORE EQUITABLE SETTLEMENT IN BOSNIA SPEAKING A DAY AFTER THE COLLAPSE OF PEACE TALKS IN GENEVA THE SECRETARY OF STATE SAID SERBS AND CROATS SHOULD SHOW MORE FLEXIBILITY IN PARTITIONING BOSNIA LATER PRESIDENT CLINTON WARNED THAT THE POSSIBILITY OF NATO AIR STRIKES IS VERY MUCH ALIVE IF THE SITUATION DETERIORATES HE URGED THE WARRING PARTIES TO RESUME TALKS THE BELGRADE GOVERNMENT ORDERED RATIONING OF BASIC COMMODITIES IN SERBIA AND MONTENEGRO A SIGN THAT THE ECONOMY IS BEING SQUEEZED BY A UN EMBARGO AND HEAVY FUNDING FOR SERB REBEL FORCES A FORMER BANKER AGREED TO PLEAD GUILTY TO THREE CRIMINAL CHARGES IN THE BANCA NAZIONALE DEL LAVORO FRAUD CASE INVOLVING ILLEGAL LOANS MADE TO IRAQ BY THE BANK'S ATLANTA BRANCH CHRISTOPHER DROGOUL'S PLEA AGREEMENT WILL PRECLUDE A TRIAL IN THE CASE WHICH CRITICS SAY HAS BEEN MARKED BY COVERUPS A TOP PENTAGON OFFICIAL DEFENDED THE ADMINISTRATION'S EMERGING POLICY TOWARD THE DEFENSE INDUSTRY SAYING IT SHOULDN'T BE MISTAKEN FOR A JOBS PROGRAM OR A BAILOUT FOR WEAK FIRMS I EXPLICITLY REJECT THE IDEA OF SUPPORTING A DEFENSE COMPANY JUST TO KEEP IT IN BUSINESS DEPUTY DEFENSE SECRETARY PERRY SAID THE CLINTON ADMINISTRATION PLANS TO DEVELOP AN INFORMATIONGATHERING SYSTEM TO SPOT PROFITEERS IN THE HEALTH INDUSTRY IT WASN'T CLEAR WHAT THE GOVERNMENT WOULD DO WITH THE DATA THE US AND RUSSIA ANNOUNCED PLANS TO WORK TOWARD BUILDING A SPACE STATION TOGETHER CONCLUDING TALKS IN WASHINGTON VICE PRESIDENT GORE AND RUSSIA'S PRIME MINISTER ALSO AGREED TO BEGIN MORE JOINT MISSIONS AND TO BUILD AN INTERIM SPACE PLATFORM THAT COULD BE USED BY RUSSIANS AND AMERICANS THE SOUTH KOREAN GOVERNMENT ACCEPTED A NORTH KOREAN PROPOSAL TO EXCHANGE SPECIAL ENVOYS TO DISCUSS PYONGYANG'S NUCLEAR PROGRAM WASHINGTON HAS MADE THE RESUMPTION OF A KOREAN DIALOGUE A PRECONDITION FOR SENIORLEVEL TALKS BETWEEN THE US AND NORTH KOREA THE AUSTRALIAN GOVERNMENT UNVEILED A PLAN UNDER WHICH ABORIGINES WOULD BE ABLE TO COMPETE WITH RANCHERS AND MINERS FOR LAND RIGHTS BUT COULD MAKE NO CLAIMS TO PRIVATE PROPERTY THE PLAN COMES 15 MONTHS AFTER THE HIGH COURT RECOGNIZED FOR THE FIRST TIME THAT ABORIGINES OWNED THE LAND BEFORE EUROPEANS ARRIVED TWO CENTURIES AGO NICARAGUAN LEADER CHAMORRO ANNOUNCED THAT SHE HOPES TO NAME A SUCCESSOR NEXT YEAR TO HER ARMY COMMANDER GEN HUMBERTO ORTEGA BROTHER OF FORMER SANDINISTA PRESIDENT DANIEL ORTEGA THE ARMY CHIEF'S OUSTER HAD BEEN DEMANDED BY A GROUP OF CONTRA REBELS WHO SEIZED GOVERNMENT OFFICIALS LAST MONTH AND HELD THEM HOSTAGE FOR SIX DAYS THE VATICAN APPEARED READY TO EASE ITS 40YEAROLD STANDOFF WITH CHINA AS OFFICIALS ANNOUNCED THAT A SENIOR CARDINAL HAD LEFT FOR BEIJING THE CARDINAL WOULD BE THE HIGHESTRANKING ROMAN CATHOLIC CHURCH OFFICIAL EVER TO VISIT CHINA POPE JOHN PAUL II MEANWHILE IS LEAVING TOMORROW FOR A SEVENDAY TRIP TO LITHUANIA LATVIA AND ESTONIA THE NIGERIAN LABOR CONGRESS SUSPENDED ITS SIXDAYOLD GENERAL STRIKE BUT UNION LEADERS FOR OIL WORKERS AND BANK EMPLOYEES VOWED TO PRESS AHEAD WITH THE WALKOUT UNTIL THEY TOPPLE NIGERIA'S NEW GOVERNMENT 9309030095 930903 TECHNOLOGY RULING ON DISPUTE OVER INTEL CHIP CLONE WILL BE REVIEWED SAN FRANCISCO THE CALIFORNIA SUPREME COURT KEEPING ALIVE A LONGRUNNING LEGAL SPAT BETWEEN TWO SILICON VALLEY RIVALS AGREED TO REVIEW AN ARBITRATOR'S 1992 RULING THAT GAVE ADVANCED MICRO DEVICES INC THE RIGHTS TO MAKE A CLONE OF AN INTEL CORP CHIP THE 1992 ARBITRATION RULING WAS GUTTED IN JUNE BY THE CALIFORNIA COURT OF APPEALS WHICH SAID THE ARBITRATOR EXCEEDED HIS AUTHORITY IN GIVING ADVANCED MICRO THE RIGHTS TO SELL ITS VERSION OF INTEL'S 386 MICROPROCESSOR THE BRAINS OF MILLIONS OF PERSONAL COMPUTERS THE STATE SUPREME COURT YESTERDAY GRANTED ADVANCED MICRO'S REQUEST THAT THE COURT REVIEW THE CASE THE REVIEW IS EXPECTED TO TAKE AT LEAST A YEAR AN ADVANCED MICRO SPOKESMAN SAID ADVANCED MICRO ARGUES THAT IT HAS THE RIGHTS UNDER A 1982 TECHNOLOGYSHARING AGREEMENT TO MAKE INTEL'S 386 CHIP INTEL DISAGREES AND SAYS ADVANCED MICRO'S CHIPS INFRINGE ON INTEL COPYRIGHTS THE DISPUTE WENT INTO ARBITRATION IN 1987 THE ARBITRATOR RULED LAST YEAR THAT UNDER THE 1982 AGREEMENT ADVANCED MICRO HADN'T EARNED THE RIGHTS TO COPY THE 386 BUT HE AWARDED ADVANCED MICRO THE RIGHTS TO MAKE A KNOCKOFF OF INTEL'S CHIPS BECAUSE HE SAID INTEL HAD SHOWN BAD FAITH IN BARGAINING OVER THE ISSUE INTEL ALSO HAS SEVERAL FEDERAL COPYRIGHTINFRINGEMENT LAWSUITS PENDING AGAINST ADVANCED MICRO 9309030094 930903 FINANCING BUSINESS NORTHERN TELECOM LTD NORTHERN TELECOM LTD TORONTO SAID IT OFFERED 400 MILLION OF NOTES AND PLANS TO USE THE PROCEEDS TO REPAY MATURING OBLIGATIONS REFINANCE EXISTING SHORTTERM DEBT AND FOR OTHER PURPOSES LAST MONTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP LOWERED THEIR RATINGS ON ABOUT 16 BILLION OF THE COMPANY'S EXISTING LONGTERM DEBT FOLLOWING EXPECTATIONS OF WEAKER OPERATING RESULTS THE NEW ISSUE COMPRISES 200 MILLION OF 6 NOTES DUE SEPT 1 2003 AND 200 MILLION OF 6875 NOTES DUE SEPT 1 2023 THE NOTES WILL BE ISSUED AT 995 AND 987 PAR RESPECTIVELY A GROUP COMPRISING GOLDMAN SACHS & CO FIRST BOSTON CORP JP MORGAN SECURITIES INC AND LEHMAN BROTHERS INC ARE UNDERWRITERS FOR THE OFFERING 9309030093 930903 DELTA AIR CUTS FALL FARES FURTHER FROM ATLANTA HUB ATLANTA DELTA AIR LINES AGAIN CUT FALL FARES ON FLIGHTS HERE IN A MOVE THAT FORTIFIES ITS LARGEST HUB AGAINST INROADS FROM LOWCOST COMPETITORS DELTA DIDN'T CHARACTERIZE HOW STEEP THE DISCOUNT WOULD BE BUT THE FARES ARE LESS THAN THE 25 SYSTEMWIDE FALL FARE SALE THAT DELTA INITIATED LAST MONTH AND CONTINUES IN EFFECT WHAT'S MORE THE NEW FARES DO NOT REQUIRE A SATURDAY NIGHT STAY WHICH IS STANDARD IN MOST SALES UNDER THE LATEST INITIATIVE DELTA INTRODUCED ROUNDTRIP 138 AND 178 FARES ON SELECTED FLIGHTS BETWEEN ATLANTA AND SEVEN FLORIDA CITIES INCLUDING MIAMI ORLANDO AND FORT LAUDERDALE THE 178 FARE REQUIRES NO ADVANCE PURCHASE WHILE THE LOWER FARE REQUIRES A 14DAY ADVANCE PURCHASE DELTA ALSO ANNOUNCED 178 ROUNDTRIP FARES BETWEEN ATLANTA AND EIGHT OTHER CITIES BOSTON CHICAGO NEW YORK NEW ORLEANS DETROIT WASHINGTON PHILADELPHIA AND COLUMBUS OHIO TICKETS MUST BE BOUGHT SEVEN DAYS IN ADVANCE TICKETS FOR BOTH THE FLORIDA AND NONFLORIDA DESTINATIONS MUST BE PURCHASED BY SEPT 30 AND TRAVEL MUST BE COMPLETED BY DEC 15 BLACKOUT DATES APPLY TO NOV 24 28 AND 29 IT WAS UNCLEAR LATE YESTERDAY WHETHER OTHER AIRLINES WOULD MATCH THE SALE 9309030092 930903 LETTERS TO THE EDITOR SUSAN SONTAG'S MORAL OBLIGATION HILTON KRAMER CHARACTERIZES SUSAN SONTAG AS IN EFFECT A MEDDLING DILETTANTE IN THE WAR IN BOSNIA HE REJECTS HER COMPARISON OF BOSNIA WITH THE SPANISH CIVIL WAR IN SARAJEVO FALSE ECHOES OF SPAIN EDITORIAL PAGE AUG 24 MR KRAMER IS BOTH RIGHT AND WRONG HE IS CORRECT IN STATING THAT MS SONTAG'S PRESENCE IN SARAJEVO WILL DO NOTHING TO END THE TRAGEDY SUFFERED BY THE CITY'S RESIDENTS BUT HE IS WRONG IN EXTENDING HIS OPINION OF MS SONTAG'S MORALITY AND EFFICACY TO THE GRANDER HISTORICAL CONTEXT THE COMPARISON BETWEEN YUGOSLAVIA AND SPAIN HAS VERY LITTLE TO DO WITH THE CLAIM THAT THERE WAS AS MR KRAMER ARGUES AT LEAST AN ILLUSION AMONG LIBERALS ANYWAY OF A CLEARCUT CHOICE BETWEEN GOOD AND EVIL IN SPAIN BUT THAT IN THE YUGOSLAV WAR THERE ISN'T EVEN THE ILLUSION OF SUCH A CHOICE IN REALITY THE ILLUSIONS OF LIBERALS ABOUT SPAIN WERE IRRELEVANT AND MR KRAMER WHO CRITICIZES THE SAME LIBERALS FOR NOT KNOWING OR CARING WHAT REALLY HAPPENED IN SPAIN SHOULD UNDERSTAND THAT THE TRUTH IS THAT THE ANARCHISTS COMMUNISTS AND OTHER RADICALS ON THE SPANISH REPUBLICAN SIDE COMMITTED ACTS OF EVIL THAT WERE EQUAL TO THOSE OF THE FRANCOISTSASSASSINATIONS WHOLESALE CULTURAL VANDALISM THE ATTEMPTED LIQUIDATION OF WHOLE CLASSES OF PEOPLE INDEED IT IS IN SUCH A DESCENT INTO INDISCRIMINATE HORROR THAT BOSNIA SPECIFICALLY OFFERS REMARKABLE PARALLELS WITH WHAT TOOK PLACE UNDER THE SPANISH REPUBLIC AS IN REPUBLICAN SPAIN WHERE HEROIC POPULAR RESISTANCE FREQUENTLY RESULTED IN MURDER AND BANDITRY SO IN BOSNIA THE CHAOTIC SITUATION INSIDE THE BESIEGED TOWNS HAS MADE THE GANGSTER A KING AS IN REPUBLICAN SPAIN WHERE THE BETTERARMED COMMUNIST MINORITY WITH POWERFUL SOVIET BACKING BETRAYED THE NONCOMMUNIST ANARCHIST AND SOCIALIST MAJORITY SO THE WELLARMED AND WELLCONNECTED CROATS HAVE TURNED ON THE POOR AND OBSCURE BOSNIAN MUSLIMS AND ONE SHOULD NOT LEAVE ASIDE THE UNARGUABLE PARALLELS BETWEEN THE FRANCOIST ARMIES' TERROR IN SPAIN WHICH INCLUDED THE THREAT OF MASS RAPE BY MOROCCAN MERCENARIES THE POLITICAL AS WELL AS ETHNIC PURGING OF WHOLE REGIONS COLLECTIVE EXECUTIONS AND DEPORTATIONS ETC AND THE SERBIAN TERROR IN THIS WAR BUT THE MORE SIGNIFICANT PARALLEL BETWEEN SPAIN AND YUGOSLAVIA RESIDES NOT IN THE PURPORTED VIRTUE OR VICIOUSNESS OF EITHER SIDE BUT IN THE FAILURE OF THE RULING POWERS TO INTERVENE HAD FRANCE AND BRITAIN ACTED IN 1936 TO IMPEDE THE FLOW OF GERMAN AND ITALIAN ARMS AND TROOPS INTO SPAIN THAT WAR MIGHT HAVE ENDED EXPEDITIOUSLY THE SAME MAY BE SAID OF BOSNIA TODAY AS TO MS SONTAG'S COMPETENCE TO COMMENT ON THE BOSNIAN WAR REGARDLESS OF HER SOPHISTICATION IN THE AREA OF BALKAN STUDIES MS SONTAG HAS GONE TO SARAJEVO TWICE SHE HAS SEEN THE WAR HERSELF AND HAS RISKED HER LIFE THE SUGGESTION THAT THIS DOES NOT IN ITSELF CONFER A RATHER CONSIDERABLE COMPETENCE NOTWITHSTANDING ONE'S VIEW OF HER OPINIONS IS HEARTLESS AND ABSURD MR SCHWARTZ COAUTHORED WITH VICTOR ALBA SPANISH MARXISM VS SOVIET COMMUNISM TRANSACTION BOOKS 1988 MR KRAMER EXCORIATES SUSAN SONTAG FOR GOING TO SARAJEVO WITHOUT EXPLAINING THAT SHE WENT TO STAGE WAITING FOR GODOT AT THE INVITATION OF AND WITH THE FULL SUPPORT OF PEOPLE IN THAT COMMUNITY WHAT THE PEOPLE THERE THINK OR FEEL DOESN'T SEEM TO SOFTEN HIS ENMITY HE THEN CRITICIZES MS SONTAG FOR SPEAKING OUT ON AN ISSUE BEYOND HER KEN MR KRAMER DOESN'T SAY WHAT KEN GETS HIS SEAL OF APPROVAL ON THE DAY HIS HATCHET JOB APPEARED YET ANOTHER STATE DEPARTMENT BOSNIA EXPERT PRESUMABLY OF HIGHER KEN QUIT WARNING IN SONTAGLIKE TERMS OF A HOLOCAUST HELPED ALONG BY THE LACK OF RESOLVE BY AMERICAN POLICY MAKERS ON THAT SAME DAY MORE CHILDREN WERE SLAUGHTERED BY SNIPERS CARRYING OUT A PREMEDITATED AGGRESSION THAT CAN'T BE EXPLAINED AWAY WITH A CLICHED ONESIDEISASBADASTHEOTHER APLAGUEONALLTHEIR HOUSES REFERENCE TO CRIMES BY EVERY PARTY TO THE CONFLICT MS SONTAG WAS INVITED TO WORK IN BELEAGUERED SARAJEVO BY MANY OF ITS MOST PROMINENT AND RESPECTED CITIZENS IT WAS THEIR HOPE THAT HER PRESENCE WOULD HELP BOOST MORALE AND FOCUS INTERNATIONAL ATTENTION ON THE CITY'S TERRIBLE PLIGHT A PAST PRESIDENT OF THE AMERICAN BRANCH OF PEN MS SONTAG COULD NOT HAVE SHIRKED THIS MORAL OBLIGATION TO BEAR WITNESS WHATEVER ONE THINKS OF AMERICAN POLICY TOWARD THE BALKAN FIRESTORM THE DECISION BY MS SONTAG AND HER SON DAVID RIEFFALMOST ALONE AMONG WESTERN INTELLECTUALSTO RISK THEIR LIVES ON BEHALF OF THE SUFFERING INNOCENTS OF SARAJEVO OUGHT TO BE A MATTER OF PRAISE RATHER THAN SNEERING CONDEMNATION 9309030090 930903 ABREAST OF THE MARKET INDUSTRIAL STOCKS DROP 19 POINTS DESPITE RALLY IN HEALTHCARE ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS IGNORED SURGING BOND PRICES AND A HEALTHCARE SECTOR RALLY TO BID STOCKS LOWER AHEAD OF THE LONG WEEKEND THE DOW JONES INDUSTRIAL AVERAGE STUMBLED 19 POINTS OR 052 TO 362610 THE STANDARD & POOR'S 500STOCK INDEX FELL 185 POINTS OR 040 TO 46130 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 077 POINT OR 030 TO 25611 BIG BOARD DECLINERS LED ADVANCERS BY 1033 TO 945 VOLUME TOTALED 259410000 SHARES UP FROM 244960000 WEDNESDAY TRADERS SAID SEVERAL ROUNDS OF COMPUTERGUIDED PROGRAM SELLING AND FURTHER EVIDENCE THIS WEEK OF ECONOMIC WEAKNESS FUELED YESTERDAY'S SELLING RETAIL SALES WERE A BIT LIGHT AND FACTORY ORDERS FELL SAID ANTHONY CONROY MANAGING DIRECTOR OF EQUITIES AT MABON SECURITIES CORP THIS IS REINFORCING THE IMPRESSION THAT WE STILL HAVE A FALTERING ECONOMY THE GOVERNMENT REPORTED YESTERDAY THAT FACTORY ORDERS FOR JULY FELL 21 THE LARGEST DECLINE IN MORE THAN 1 1/2 YEARS THE REPORT COMES ON THE HEELS OF DISAPPOINTING NEWS FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS WEDNESDAY THAT ITS INDEX FOR AUGUST DROPPED TO 493 FROM 495 IN JULY A READING BELOW 50 IS SAID TO SIGNIFY A CONTRACTION IN MANUFACTURING NASDAQ SHARES JUMPED TO NEW HIGHS ON THE STRENGTH OF HEALTHCARE ISSUES THE NASDAQ COMPOSITE INDEX CLIMBED 250 POINTS OR 034 TO 74865 BREAKING ITS RECORD OF 74615 SET WEDNESDAY MEDICALRELATED ISSUES PARTICULARLY DRUG STOCKS AND HEALTH MAINTENANCE ORGANIZATIONS FIRMED AS THE WHITE HOUSE CONFIRMED THAT PRESIDENT CLINTON'S HEALTHCARE PROPOSAL WON'T INCLUDE RIGID PRICE CONTROLS MERCK ROSE 1 5/8 TO 33 1/8 US HEALTHCARE 2 3/4 TO 47 1/8 MEDTRONIC 1 7/8 TO 65 3/8 UNITED HEALTHCARE 3 TO 62 1/8 AND PFIZER 2 TO 64 3/4 PFIZER ALSO SAID IT HAS AGREED TO SETTLE ALL CASES AND CLAIMS REGARDING THE BJORKSHILEY CONVEXOCONCAVE HEART VALVE BOND YIELDS DROPPED TO RECORD LOWS WITH THE LONG BOND UP MORE THAN 5/8 POINT ITS YIELD FINISHED AT 604 BUT MABON'S MR CONROY SAID THAT MANY MARKET PLAYERS ARE ANTICIPATING A PULLBACK IN BOND PRICES SOON AND WONDER HOW LONG GOVERNMENT SECURITIES WILL KEEP STOCK PRICES AFLOAT THE MABON TRADER ADDED THAT PART OF YESTERDAY'S SLIDE ON THE BIG BOARD WAS THE RESULT OF EVENING OUT POSITIONS BEFORE THE LABOR DAY WEEKEND OBSERVERS ARE EXPECTING A SLOW DAY TODAY ALTHOUGH MARKET PARTICIPANTS WHO ARE AROUND WILL BE WATCHING THE GOVERNMENT'S AUGUST EMPLOYMENT DATA DUE OUT THIS MORNING FOR MORE CLUES ON THE ECONOMIC PICTURE WILLIAM E RAFTERY A TECHNICAL ANALYST AT SMITH BARNEY SHEARSON SAID CONSUMERSPENDING STOCKS SUCH AS RETAILERS AND AUTO MAKERS PUT PRESSURE ON THE OVERALL MARKET LOWER RETAIL SALES COULD BE THE TIP OF THE ICEBERG TO WEAKNESS THROUGH THE END OF THE YEAR HE SAID IN THE RETAIL GROUP FAMILY DOLLAR WAS OFF 1 AT 18 5/8 AFTER SAYING ITS SAMESTORE SALES FELL 56 LAST MONTH FROM THE YEAREARLIER PERIOD TJX DROPPED 3/4 TO 27 3/4 ON AUGUST SAMESTORE SALES THAT EASED 1 FROM A YEAR AGO GAP DROPPED 1 5/8 TO 27 1/8 AFTER SAYING ITS SAMESTORE SALES FELL 3 WALMART LOST 1 TO 24 3/4 ON VOLUME OF ABOUT 61 MILLION SHARES MORE THAN TWICE THE USUAL LEVEL THE SHARES APPARENTLY FELL IN SYMPATHY WITH OTHER RETAILERS BECAUSE THE COMPANY'S SALES LAST MONTH TOTALED 56 BILLION UP 20 FROM THE 1992 PERIOD BEST BUY BUCKED THE TREND BALLOONING 3 3/8 TO 37 5/8 AFTER SAYING AUGUST SALES ROSE 94 FROM LAST YEAR'S CAR MAKERS FELL WITH FORD MOTOR DOWN 7/8 AT 51 1/2 GENERAL MOTORS 1 TO 45 5/8 AND CHRYSLER 1/4 TO 42 3/4 FORMER CHRYSLER CHAIRMAN LEE IACOCCA STEPPED DOWN AS A DIRECTOR AND AS CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE HE WILL REMAIN A CONSULTANT THROUGH NEXT YEAR MYLAN LABORATORIES INCREASED 1 7/8 TO 24 THE FOOD AND DRUG ADMINISTRATION APPROVED THE COMPANY'S NAPROXEN TABLETS IN SEVERAL STRENGTHS BROWNINGFERRIS FELL 1 1/4 TO 23 5/8 ON NEWS THAT IT HAS SIGNED A LETTER OF INTENT TO ACQUIRE WESTERN WASTE INDUSTRIES IN A STOCK SWAP WESTERN WASTE ADDED 3 TO 20 SOME ANALYSTS SAID THAT FOR THE SHORT TERM BROWNINGFERRIS'S 520 MILLION ACQUISITION MIGHT BE A LITTLE TOO PRICEY AVON PRODUCTS TUMBLED 4 5/8 TO 54 7/8 ON A DISAPPOINTING THIRDQUARTER OUTLOOK THE COMPANY SAID IT EXPECTS TO REPORT EARNINGS BELOW THE 75 CENTS A SHARE POSTED A YEAR EARLIER GOLD AND SILVER PRICES FELL SENDING STOCKS SUCH AS NEWMONT MINING DOWN 1 TO 48 3/4 ALSO LOWER WERE AMERICAN BARRICK DOWN 7/8 TO 24 1/2 AND PEGASUS GOLD 7/8 TO 22 5/8 ARVIN INDUSTRIES WHICH MAKES AUTOMOTIVE EQUIPMENT PLUNGED 3 7/8 TO 28 7/8 FOLLOWING A SMITH BARNEY SHEARSON DOWNGRADE TO NEUTRAL FROM OUTPERFORM WENDY NEEDHAM AN ANALYST AT THE BROKERAGE FIRM SAID SHE CUT HER RATING IN RESPONSE TO THE COMPANY'S STATEMENT WEDNESDAY THAT ITS THIRDQUARTER EARNINGS ARE LIKELY TO FALL SHORT OF RECENT PROJECTIONS ALTHOUGH REVENUE IS MEETING COMPANY EXPECTATIONS THE ANALYST ALSO LOWERED HER 1993 AND 1994 EARNINGS ESTIMATES FOR ARVIN SHARES OF MGM GRAND CLOSED 1 7/8 LOWER AT 45 3/4 ON PROFITTAKING IN ACTIVE TRADING TRADERS AND ANALYSTS SAID THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 231 POINTS OR 050 TO 46128 A NEW HIGH 9309030089 930903 CHRYSLER CANADA LTD IS PICKED AS TARGET FOR CONTRACT TALKS TORONTO WITH AN EYE ON CHRYSLER CORP'S HOTSELLING MINIVANS AND LH CARS THE CANADIAN AUTO WORKERS CHOSE CHRYSLER CANADA LTD AS ITS TARGET FOR NEGOTIATING A NEW THREEYEAR CONTRACT CALLING CHRYSLER THE SUCCESS STORY OF THE '90S CAW PRESIDENT BUZZ HARGROVE UNDERSCORED THE CLOUT THE CANADIAN UNION HAS WITH CHRYSLER SINCE SOME OF THE COMPANY'S MOST POPULAR MODELS ARE MADE IN CANADA WITH THEIR INVENTORY WHERE IT'S AT AND THE POPULARITY OF THEIR MODELS WE'LL HAVE AN IMPACT ON CHRYSLER VERY SHORTLY AFTER A STRIKE IF THERE IS ONE MR HARGROVE TOLD A CROWD OF CAW DELEGATES CHRYSLER CANADA HAD AN OPERATING PROFIT OF ABOUT 65 MILLION CANADIAN DOLLARS US49 MILLION IN 1992 BEFORE NONRECURRING CHARGES TURNED THE RESULT INTO A LOSS OF ABOUT C37 MILLION A COMPANY SPOKESMAN SAID THE CAW'S CONTRACT WITH CHRYSLER CANADA EXPIRES SEPT 14 AND COVERS ABOUT 10470 OF CHRYSLER CORP'S 113000 WORKERS AN ASSEMBLER EARNS C2048 US1540 AN HOUR KEEPING WITH TRADITION THE CAW AVOIDED PICKING THE SAME TARGET AS THE UNITED AUTO WORKERS WHICH DECIDED ON FORD MOTOR CO EARLIER THIS WEEK FORD WAS A STRONG CANDIDATE BUT TARGETING THEM NOW WOULD ELIMINATE THE CAW'S BARGAINING POWER SINCE A STRIKE IN THE US WOULD CRIPPLE FORD'S CANADIAN OPERATIONS AS WELL MR HARGROVE SAID BY THE SAME TOKEN A WORK STOPPAGE AT CHRYSLER CANADA WOULD DEEPLY DISRUPT US OPERATIONS WHILE SKIMPING ON DETAILS THE CAW SAID IT WILL SEEK SIGNIFICANT INCREASES IN WAGES AND PENSIONS IMPROVEMENTS ON INCOME SECURITY AND SEVERAL PROGRAMS AIMED AT REDUCING THE AVERAGE WORK SHIFT 9309030088 930903 BUSINESS BRIEF UNITED TECHNOLOGIES CORP SIKORSKY AIRCRAFT UNIT OFFERS VOLUNTARY SEVERANCE PLAN SIKORSKY AIRCRAFT THE STRATFORD CONN HELICOPTER MANUFACTURING SUBSIDIARY OF UNITED TECHNOLOGIES CORP SAID IT OFFERED A VOLUNTARY SEVERANCE PACKAGE TO ITS SALARIED WORKERS IN A BID TO AVOID LAYOFFS ABOUT 5200 OF SIKORSKY'S 11500 WORKERS RECEIVED THE OFFERS WEDNESDAY SIKORSKY DIDN'T SAY HOW MANY JOBS IT WANTS TO ELIMINATE OR HOW MANY WORKERS IT EXPECTS TO ACCEPT THE BUYOUT OFFER THE WORKERS HAVE UNTIL SEPT 14 TO ACCEPT THE OFFER WHICH INCLUDES A WEEK'S PAY FOR EVERY YEAR OF SERVICE AND HEALTH BENEFITS FOR ONE YEAR AFTER THEY LEAVE A SPOKESMAN ATTRIBUTED THE OFFER TO THE SLOWDOWN IN BUSINESS CAUSED BY DEFENSE CUTBACKS WE HAVE TO BE CAREFUL WE DON'T HAVE A WORK FORCE OUTSIZING OUR SHIPPING REQUIREMENTS A SIMILAR OFFER LAST YEAR RESULTED IN RETIREMENT OF ABOUT 200 EMPLOYEES UNITED TECHNOLOGIES IS BASED IN HARTFORD CONN 9309030087 930903 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 89 DAYS 312 90 TO 149 DAYS 321 150 TO 179 DAYS 323 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 316 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 264 TWO MONTHS 268 THREE MONTHS 283 SIX MONTHS 296 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 304 ONE MONTH 309 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 306 60 DAYS 306 90 DAYS 315 120 DAYS 315 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 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 660 60 DAYS 666 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 662 60 DAYS 672 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 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 9309030086 930903 TECHNOLOGY GENENTECH SAYS ITS CLOT DRUG REGAINS MARKET SHARE OF 66 AFTER MAJOR STUDY BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO CALIF BUOYED BY A MAJOR HEART STUDY IN APRIL GENENTECH INC SAYS ITS TATTERED FLAGSHIP PRODUCT ACTIVASE HAS COME SAILING BACK TO RECLAIM A COMMANDING TWOTHIRDS SHARE OF THE MARKET FOR CLOTBUSTING DRUGS ACTIVASE OR TPA COSTS 2200 A DOSE COMPARED WITH ITS NEAREST COMPETITOR STREPTOKINASE WHICH COSTS IN THE 200 TO 350 RANGE STREPTOKINASE IS SOLD BY ASTRA AB AND KABI FARMACIA AB OF SWEDEN AND BY HOECHST AG OF GERMANY A REBOUND FOR ACTIVASE AN ASSERTION WHICH GENENTECH'S RIVALS ARE QUESTIONING WOULD BE THE THE LATEST TWIST IN THE ROLLER COASTER FORTUNES OF THE EXPENSIVE HEART ATTACK DRUG AFTER ITS INTRODUCTION IN 1987 ACTIVASE QUICKLY GRABBED A 66 SHARE IN TERMS OF THE NUMBER OF PATIENTS TREATED IN THE MARKET FOR SOCALLED THROMBOLYTIC OR CLOTDISSOLVING DRUGS HOWEVER ITS EDGE ERODED AFTER STUDIES IN THE LATE 1980S SHOWED IT AND STREPTOKINASE WERE EQUALLY EFFECTIVE DRIVING MANY COSTCONSCIOUS DOCTORS TO CHOOSE THE CHEAPER PRODUCT BY LATE 1990 ACTIVASE'S SHARE WAS SLIDING TO THE 50 MARK WHERE IT STALLED DEPRESSING SALES AND PROFIT FOR THE BIOTECH COMPANY THE REMAINDER OF THE MARKET WENT TO STREPTOKINASE AND NEWER DRUGS SUCH AS SMITHKLINE BEECHAM PLC'S DRUG EMINASE ON APRIL 30 RESULTS WERE RELEASED FROM THE LONGAWAITED TRIAL THAT PITTED ACTIVASE AND STREPTOKINASE IN A HEADTOHEAD SURVIVAL STUDY OF 41000 HEART ATTACK PATIENTS AROUND THE WORLD THE STUDY FOUND THAT PATIENTS GIVEN ACTIVASE SUFFERED A 63 DEATH RATE OR ONE PERCENTAGE POINT LOWER THAN THE AVERAGE 73 MORTALITY OF PATIENTS ON STREPTOKINASE THAT SLENDER BUT STATISTICALLY SIGNIFICANT SURVIVAL EDGE WAS HAILED BY GENENTECH AS THE END OF THE BATTLE STILL SKEPTICS QUESTIONED WHETHER A ONEPERCENTAGEPOINT ADVANTAGE WAS SUFFICIENT TO JUSTIFY THE LARGE PRICE PREMIUM THIS WEEK A GENENTECH SPOKESMAN SAID THAT WITHIN THREE MONTHS OF THE APRIL STUDY'S RELEASE ACTIVASE REGAINED THE MARKET SHARE IT HAD LOST OVER THE PREVIOUS TWO YEARS AS OF JULY IT HAS GONE BACK UP TO 66 AND THAT'S THE HIGHEST WE'VE SEEN SINCE SEPTEMBER 1990 STREPTOKINASE CLAIMED A 33 SHARE AND EMINASE 1 ACCORDING TO TWO SURVEYS COMMISSIONED BY GENENTECH OF DRUG WHOLESALERS AND HOSPITAL PHARMACISTS THE COMPANY SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GENENTECH FELL 125 CENTS TO 4150 AT ASTRA USA IN WESTBOROUGH MASS EXECUTIVES SAID THEY WERE VERY SKEPTICAL OF THE GENENTECH CLAIM WE HAVE NEVER SOLD MORE STREPTOKINASE THAN WE HAVE THIS YEAR SAID STEFAN SOLVELL SENIOR VICE PRESIDENT OF FINANCE AND ADMINISTRATION OF ASTRA AB'S US UNIT OUR WHOLESALERS ARE BUYING OUR PRODUCT WE SAW A BLIP BUT TO US THIS MEANS NOTHING SCIENCE IS ON OUR SIDE AND WE WILL WIN IF GENENTECH'S NUMBERS ARE RIGHT THE QUESTION REMAINS WHETHER IT CAN PROLONG THE COMEBACK OF ACTIVASE IN THE ERA OF HEALTHCARE REFORM AND DEEPEN ITS PENETRATION OF THE HEART DRUG MARKET STILL MORE OF THE 900000 PEOPLE WHO SUFFER HEART ATTACKS IN THE US EVERY YEAR ONLY ONEFIFTH OF ELIGIBLE PATIENTS RECEIVE THROMBOLYTIC DRUGS OF ANY KIND G KIRK RAAB PRESIDENT AND CHIEF EXECUTIVE OF THE BIOTECHNOLOGY COMPANY FERVENTLY ASSERTS THAT ACTIVASE'S ASCENDANCY IS REAL THE QUESTION OF HOW TO SAVE THE MOST LIVES WITH CLOTBUSTING DRUGS WAS ANSWERED BY THE TRIAL ON APRIL 30 AND THE ANSWER IS THAT ACTIVASE IS SUPERIOR TO STREPTOKINASE MR RAAB SAID HE ALSO ARGUES ITS COSTBENEFIT RATIO IS COMPARABLE TO OTHER MEDICAL INTERVENTIONS LIKE KIDNEY DIALYSIS AND HYPERTENSION TREATMENT BEHIND THE TURNAROUND ARE DOCTORS LIKE GEORGE TAYLOR A SPRINGFIELD ILL CARDIOLOGIST AND A SKEPTICTURNEDBELIEVER ABOUT THE MERITS OF ACTIVASE WHEN THE EARLY STUDIES ON ACTIVASE CAME OUT WE WERE SKEPTICAL WE CONSIDERED GENENTECH OVERBEARING THERE WAS A LOT OF HYPE HE SAID IN AN INTERVIEW BUT AFTER THE MORE RECENT STUDIES DR TAYLOR CHANGED HIS POSITION THERE'S NO DOUBT FOR PATIENTS WITH A BIG HEART ATTACK WHO CAN BE TREATED EARLY THEY SHOULD BE TREATED WITH TPA HE SAYS 9309030085 930903 LEISURE & ARTS BOOKSHELF OSWALD REALLY DID IT AND WITHOUT HELP BY ALEX HEARD IF YOU DOUBT THAT 30 YEARS OF JFK ASSASSINATION THEORY HAVE HAD AN EFFECT CONSIDER WHAT IS HAPPENING TO GERALD POSNER'S CASE CLOSED LEE HARVEY OSWALD AND THE ASSASSINATION OF JFK RANDOM HOUSE 607 PAGES 25 THIS EXHAUSTIVE REEXAMINATION IS GETTING THE FULL TREATMENT RESERVED FOR MAJOR WORKS OF CONTROVERSIAL REVELATIONS COMPLETE WITH A PUBLISHER'S EMBARGO AND SERIALIZATION IN A NEWSWEEKLY THE SCOOP THAT OSWALD ACTING ALONE BRIMMING WITH HALFBAKED IDEOLOGY AND LOSER'S ENVY KILLED JFK BY FIRING THREE RIFLE SHOTS FROM THE SIXTH FLOOR OF THE TEXAS SCHOOL BOOK DEPOSITORY WITH THE HELP OF A NEW COMPUTER ENHANCEMENT OF THE FAMOUS HOME MOVIE TAKEN BY ABRAHAM ZAPRUDER MR POSNER CONCLUDES THAT THE FIRST SHOT MISSED THE SECOND WOUNDED BOTH KENNEDY AND GOV JOHN CONNALLY AND THE THIRD STRUCK THE PRESIDENT FATALLY IN THE HEAD IF THAT SOUNDS FAMILIAR IT SHOULD THOUGH MR POSNER'S ACCOUNT DIFFERS IN SOME IMPORTANT PARTICULARS HE'S ADVANCING THE SAME BOTTOM LINE AS THE WARREN REPORT THE 1964 DOCUMENT THAT HUNDREDS OF WELLMEANING RESEARCHERS CONSPIRACY BUFFS OF VARYING ABILITY AND HONESTY OUTRIGHT CRANKS AND IN A CLASS BY HIMSELF OLIVER STONE WOULD HAVE YOU BELIEVE WAS THE WORK EITHER OF FOOLS OR EVIL PARTNERS IN A TREACHEROUS AND FARREACHING COVERUP MR POSNER ISN'T THE FIRST WRITER TO TAKE VIOLENT ISSUE WITH WHAT PAST THEORISTS HAVE SAID BUT FOR A COUPLE OF REASONS HIS WORK OUGHT TO HAVE MORE IMPACT THAN PREVIOUS OSWALDREALLYDIDIT BOOKS FIRST MR POSNER DOESN'T BEAR THE TAINT UNLIKE PROWARREN REPORT WRITERS SUCH AS DAVID BELIN FINAL DISCLOSURE 1988 HE HAS NO CONNECTION WITH THE LOATHED WARREN COMMISSION SECOND INSTEAD OF SIMPLY REVIEWING THE EVIDENCE AND SERVING UP A STALE CUD THAT IGNORES THE MORE FEVERISH MODERN CONSPIRATORIAL THEORIES HE STRAPPED ON HIS MACHETE AND WADED ALL THE WAY INTO THE 26 GROANING VOLUMES OF WARREN REPORT TESTIMONY AND EXHIBITS INTO THE MOUNTAIN OF DOCUMENTS AND ARCANA ASSOCIATED WITH THE 1979 REPORT OF THE HOUSE SELECT COMMITTEE ON ASSASSINATIONS INTO THE REAMS OF OTHER DOCUMENTS PRIED LOOSE FROM THE GOVERNMENT OVER TIME BY THE BUFFS HE CONDUCTED SOME 200 NEW INTERVIEWS ONE OF HIS MORE COMPELLING SUBJECTS IS YURI NOSENKO THE FAMOUS SOVIET DEFECTOR WHO WAS A KGB OFFICIAL DURING OSWALD'S INTERLUDE AS A SOVIET DEFECTOR MR NOSENKO FLATLY WAVES OFF THE IDEA THAT THE KGB RECRUITED OR IN FACT HAD ANY INTEREST IN OSWALD BUT WHAT ABOUT THE FACT THAT OSWALD DID MARINE DUTY AT ATSUGI WHERE THE U2 SPY PLANE WAS BASED WE HAD BETTER INFORMATION ALREADY COMING FROM KGB SOURCES THAN HE COULD EVER GIVE US SAYS MR NOSENKO THE KGB HE INSISTS DIDN'T WANT OSWALD FROM DAY ONE ADDRESSING SUCH POINTS IS CRUCIAL BECAUSE SOME PROWARREN REPORT WRITERS' DISDAIN FOR THE BUFFS IS SUCH THAT THEY IGNORE THEIR WILDER CLAIMS THAT'S A MISTAKE AND MR POSNER AVOIDS IT JFKASSASSINATION THEORY ENTERED NEW REALMS OF COMPLEXITY IN THE 70S IN PART BECAUSE DIFFICULTTOBELIEVE REALWORLD CONSPIRACIES LIKE WATERGATE MADE ANYTHING SEEM POSSIBLE THEN TOO THE HOUSE SELECT COMMITTEE OPENED THE THEORY FLOODGATES LATE IN THE DECADE BY CONCLUDING THAT A FOURTH SHOT HAD BEEN FIRED POSSIBLY IT SAID FROM THE INFAMOUS GRASSY KNOLL AND THAT NEW ORLEANS CRIME BOSS CARLOS MARCELLO HAD THE MOTIVE MEANS AND OPPORTUNITY TO HAVE PRESIDENT JOHN F KENNEDY ASSASSINATED BY THE TIME JFK HIT THE SCREEN IN 1991 A LOT OF AMERICANS INCLUDING PEOPLE WHO HAD SCARCELY GIVEN THE KENNEDY ASSASSINATION A THOUGHT WERE PRIMED TO BELIEVE A MUCH MORE FANTASTIC THEORY THAN THAT NAMELY THAT JFK WAS WHACKED IN A COMPLEX PLOT INVOLVING THE MOB ANTICASTRO CUBANS THE CIA RIGHTWINGERS AND MILITARY MEN CONVINCED JFK WOULD KEEP THEM FROM WAGING WAR IN VIETNAM MR POSNER BEGINS HIS ACCOUNT WITH OSWALD AND ENDS WITH OSWALD AND ALONG THE WAY WALKS THE READER THROUGH A REAPPRAISAL OF THE CASE THAT'S COMPREHENSIVE ENOUGH FOR BEGINNERS AND DETAILED ENOUGH FOR HARDCORE BUFFS BUT THIS IS FAR FROM A CLIFFS NOTES OUTLINE OF THE WORLD'S MOST DISCUSSED SHOOTING IT IS POINTED ENOUGH TO RAISE PLENTY OF HACKLES IN BUFFDOM IT'S A SAFE BET HOWEVER THAT THE HOTTEST CROSSFIRE WILL BE AIMED AT MR POSNER'S THEORY BASED ON A NEW RECKONING OF WHEN OSWALD'S FIRST SHOT WAS FIRED THAT OSWALD HAD AT LEAST EIGHT SECONDS TO GET OFF HIS SHOTS AND THAT THE FIRST SHOT MISSED THE WARREN COMMISSION WAS UNCERTAIN ABOUT THE TIMING AND ABOUT WHETHER THE FIRST OR SECOND SHOT MISSED THIS MATTERS BECAUSE MANY BUFFS INSIST OSWALD'S PACE WAS MORE HURRIED THREE SHOTS IN 48 OR 56 SECONDS MAKING IT HARD TO BELIEVE HE FIRED WITH ACCURACY MR POSNER ALSO SCOFFS AT THE IDEA THAT OSWALD WAS A POOR SHOT AND THAT THE SOCALLED MAGIC BULLET THAT HIT JFK AND CONNALLY EMERGED IN PRISTINE CONDITION IN FACT MR POSNER NOTES IT'S SLIGHTLY FLATTENED SO IS THIS CASE REALLY CLOSED NO CHANCE THE BUFFS HUNGRILY AWAIT THIS BOOK AND WE'LL HAVE TO SEE IF THEY FIND FLAWS IN MR POSNER'S ARGUMENT BUT THE SALIENT FACT FOR NOW IS THIS THEY CAN'T IGNORE IT MR HEARD IS WRITING A BOOK ON AMERICAN SUBCULTURES 9309030084 930903 BUSINESS BRIEF PURITANBENNETT CORP FIRM'S RESPIRATOR AT FIRE SITE TO BE EXAMINED BY FDA THE FOOD AND DRUG ADMINISTRATION IS LOOKING INTO WHETHER A PURITANBENNETT CORP RESPIRATOR MAY HAVE CAUSED A FATAL HOSPITAL FIRE EARLIER THIS WEEK THE FIRE IN A PATIENT'S ROOM EARLY WEDNESDAY MORNING KILLED THREE PEOPLE AT NEW YORK CITY'S MAIMONIDES MEDICAL CENTER THROUGH BURNS AND SMOKE INHALATION NEW YORK FIRE DEPARTMENT INVESTIGATORS AT THE SCENE CONCLUDED THE RESPIRATOR WAS PROBABLY THE CAUSE OF THE FIRE SAID CAPT BRIAN DIXON OF THE FIRE DEPARTMENT CAPT DIXON SAID THE FDA WILL INSPECT THE RESPIRATOR TODAY TO SEE IF IT WAS INDEED THE CAUSE OF THE FIRE AND HOW IT MIGHT HAVE MALFUNCTIONED THE DEVICE IN QUESTION IS THE COMPANY'S MODEL 7200 RESPIRATOR A PURITANBENNETT SPOKESMAN SAID THE OVERLAND PARK KAN COMPANY HASN'T BEEN ALLOWED TO SEE THE RESPIRATOR BUT THAT IT WAS HIGHLY UNLIKELY THAT A RESPIRATOR OR VENTILATOR WOULD HAVE CAUSED THE FIRE THE SPOKESMAN SAID IT WAS FAR MORE LIKELY THAT A HUMIDIFIER ATTACHED TO THE RESPIRATOR MIGHT HAVE BEEN TO BLAME THE COMPANY ALSO MAKES HUMIDIFIERS BUT SAID IT DOESN'T KNOW IF ITS OWN HUMIDIFIER WAS IN USE AT MAIMONIDES 9309030083 930903 BUSINESS BRIEF TESORO PETROLEUM CORP FILING WITH SEC RELATES TO A RECAPITALIZATION PLAN TESORO PETROLEUM CORP FILED WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO A RECAPITALIZATION PLAN THAT COULD SAVE THE COMPANY MUCH NEEDED CASH TESORO IN SAN ANTONIO TEXAS IS OFFERING TO EXCHANGE NEW 9 3/4 SECURED NOTES DUE DEC 1 2000 FOR ABOUT 108 MILLION PRINCIPAL AMOUNT OF 12 3/4 DEBENTURES DUE MARCH 15 2001 AT LEAST 50 MILLION OF THE EXISTING UNSECURED DEBENTURES MUST BE EXCHANGED FOR THE PLAN TO BECOME EFFECTIVE AND SOME ANALYSTS HAVE QUESTIONED WHETHER THE OFFER IS ATTRACTIVE ENOUGH PART OF THE RECAPITALIZATION INCLUDES RECLASSIFYING TESORO'S PREFERRED STOCK ISSUES AS VARIOUS COMBINATIONS OF COMMON AND NEW PREFERRED SHARES TESORO HAS NOT PAID PREFERRED DIVIDENDS FOR THE LAST 10 QUARTERS AND RECLASSIFYING THE PREFERRED ISSUES WOULD ELIMINATE THOSE BACK PAYMENTS WHICH TOTAL 243 MILLION SAID A TESORO SPOKESMAN 9309030082 930903 COMPUTERS INTUIT CHIPSOFT MERGER TO FILL SOFTWARE NICHE BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE MERGER OF TWO LEADERS IN THE MARKET NICHE FOR PERSONALFINANCE SOFTWARE HAS CREATED A POWERFUL NEW FORCE IN ONE OF THE SOFTWARE INDUSTRY'S FASTESTGROWING SEGMENTS INTUIT INC A MENLO PARK CALIF MAKER OF POPULAR PROGRAMS FOR PERSONAL AND SMALLBUSINESS FINANCE SAID IT AGREED TO ACQUIRE CHIPSOFT INC A SAN DIEGO MAKER OF CONSUMER TAXPREPARATION SOFTWARE IN A STOCK SWAP VALUED AT ABOUT 2329 MILLION BASED ON YESTERDAY'S SHARE PRICE THE MERGER EXPECTED TO BE COMPLETED BY DECEMBER UNITES INTUIT'S ESTIMATED 70 SHARE OF THE PERSONALFINANCE SOFTWARE MARKET WITH CHIPSOFT'S ESTIMATED 60 SHARE OF THE MARKET FOR TAXPREPARATION PROGRAMS I THINK THEY HAVE REALLY CREATED A PERSONALFINANCE POWERHOUSE SAID PETER ROGERS SOFTWARE INDUSTRY ANALYST FOR ROBERTSON STEPHENS & CO IN SAN FRANCISCO DAVID FARINA ANALYST AT WILLIAM BLAIR & CO IN CHICAGO ADDED THIS BRINGS TWO PRODUCTS THAT REALLY BELONG TOGETHER AS A CONSUMER YOU PAY YOUR BILLS AND YOU PAY YOUR TAXES TO BE ABLE TO LINK THESE TWO PRODUCTS TOGETHER IS A VERY NATURAL THING TO DO THE DEAL COMES ON THE HEELS OF AN ABORTED ATTEMPT BY CHIPSOFT TO ACQUIRE ITS SMALLER RIVAL MECA SOFTWARE INC OF FAIRFIELD CONN THAT ATTEMPT DIED AFTER THE JUSTICE DEPARTMENT THREATENED TO CHALLENGE THE 58 MILLION TRANSACTION AS ANTICOMPETITIVE MECA IS ANOTHER BIG MAKER OF TAXPREPARATION SOFTWARE AND IS ALSO A BIG COMPETITOR OF INTUIT'S IN THE PERSONALFINANCE MARKET CHIPSOFT WITHDREW THE OFFER FOR MECA AFTER JUSTICE DEPARTMENT ATTORNEYS ARGUED THAT THE MERGER WOULD HAVE GIVEN CHIPSOFT CONTROL OVER SOME OF THE MOST POPULAR BRANDS OF TAXPREPARATION SOFTWARE CAUSING CONSUMERS TO PAY HIGHER PRICES CHIPSOFT SHARES CLOSED AT 1375 DOWN 150 IN NATIONAL OVERTHECOUNTER TRADING ONE ANALYST SAID THE STOCK HAD GONE UP IN RECENT DAYS BECAUSE OF SPECULATION ABOUT A POSSIBLE MERGER BUT DROPPED YESTERDAY TO REFLECT THE VALUE OF INTUIT'S BID WHICH IS THE EQUIVALENT OF 14328 A SHARE INTUIT'S STOCK CLOSED AT 32125 DOWN 125 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY UNDER TERMS OF THE ACQUISITION HOLDERS OF CHIPSTOCK COMMON STOCK WILL RECEIVE 446 SHARES OF INTUIT COMMON FOR EACH SHARE OF CHIPSOFT COMMON ABOUT 725 MILLION SHARES OF INTUIT STOCK WILL BE EXCHANGED FOR CHIPSTOCK STOCK IN ADDITION INTUIT WILL ASSUME ALL OUTSTANDING CHIPSOFT OPTIONS THE AGREEMENT WITH INTUIT ISN'T EXPECTED TO RUN INTO SIMILAR ANTITRUST PROBLEMS BECAUSE THE COMPANIES' PRODUCTS DON'T COMPETE BUT THE DEAL LEAVES THE SMALLER MECA SUDDENLY FACING OVERWHELMING COMPETITION I THINK NOW IT BECOMES VERY VERY DIFFICULT TO GET ANYBODY INTERESTED IN THAT BUSINESS WHO WANTS TO COMPETE WITH INTUIT AND CHIPSOFT TOGETHER MR ROGERS SAID YOU'D HAVE TO BE INSANE INTUIT'S AND CHIPSOFT'S SALES HAVE GROWN 35 TO 40 A YEAR COMPARED WITH AN ANNUAL GROWTH RATE OF 15 TO 20 IN THE OVERALL SOFTWARE INDUSTRY THE ACQUISITION FITS INTO A NEW STRATEGY BY INTUIT TO BECOME THE DOMINANT SUPPLIER OF ALL TYPES OF SMALLSCALE FINANCE SOFTWARE INTUIT CARVED OUT A PROFITABLE NICHE IN THE LATE 1980S WITH QUICKEN A CHECKWRITING PROGRAM THAT CAUGHT ON QUICKLY BECAUSE IT WAS CHEAPER AND MUCH EASIER TO USE THAN COMPETING SOFTWARE IT GOT A BIG BOOST IN MARKET SHARE BY BEATING RIVALS TO MARKET WITH A VERSION OF ITS SOFTWARE THAT RUNS ON MICROSOFT CORP'S WINDOWS INTUIT ADDED TO ITS RAPID GROWTH BY SELLING SUPPLIES SUCH AS THE COMPUTER CHECKS AND ENVELOPES THAT ITS USERS BUY EMBOLDENED BY THE STRONG POSITION OF QUICKEN THE COMPANY LAST YEAR BRANCHED INTO ACCOUNTING AND PAYROLL SOFTWARE FOR SMALL BUSINESSES EARLIER THIS YEAR INTUIT TEAMED WITH VISA INTERNATIONAL TO DELIVER COMPUTERIZED FINANCIAL INFORMATION TO HOMES AND BUSINESSES IN AN EFFORT TO CREATE A MARKET FOR ELECTRONIC HOME BANKING BUT INTUIT WHICH EXPECTS TO TAKE A CHARGE ON THE ORDER OF 100 MILLION AGAINST EARNINGS IN ITS FISCAL FISCAL FIRST QUARTER ENDING DEC 31 1994 BECAUSE OF THE CHIPSOFT ACQUISITION STILL FACES A SERIOUS LONGTERM COMPETITIVE THREAT FROM MICROSOFT THE REDMOND WASH SOFTWARE GOLIATH SO FAR AT LEAST MICROSOFT IS NOT A MAJOR THREAT BECAUSE ITS PERSONALFINANCE PROGRAM MICROSOFT MONEY INTRODUCED LAST YEAR HASN'T GAINED MUCH MARKET SHARE AGAINST INTUIT'S QUICKEN BUT MICROSOFT HAS MANY TIMES CAPTURED A BIG SHARE OF THE MARKET IN SEGMENTS WHERE IT HADN'T BEEN A STRONG PRESENCE AND IT HAS MADE IT KNOWN THAT IT WANTS TO GO AFTER THE PERSONALFINANCE MARKET INTUIT ALSO FACES COMPETITION FROM OTHER CHALLENGERS LIKE COMPUTER ASSOCIATES INTERNATIONAL INC WHICH RECENTLY LAUNCHED A 6999 FINANCIAL SOFTWARE PACKAGE BY GIVING AWAY AT LEAST ONE MILLION COPIES SCOTT D COOK INTUIT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID FUTURE INTUIT PRODUCTS WOULD ENABLE HOUSEHOLDS AND SMALL BUSINESSES TO CALCULATE BUDGETS WHILE AT THE SAME TIME COMPUTING THE TAX IMPLICATIONS WE CAN MAKE IT SO YOUR FINANCIAL INFORMATION FLOWS SEAMLESSLY INTO YOUR TAX SOFTWARE MR COOK SAID CHARLES H GAYLORD JR CHIPSOFT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE TWO COMPANIES HAVE WORKED CLOSELY FOR SOME TIME AND THAT THE MERGER IS A UNIQUE OPPORTUNITY TO IMPROVE ON THAT RELATIONSHIP THE OBVIOUS SYNERGIES BETWEEN OUR PRODUCTS WERE THERE SAID MR GAYLORD WHO IS TO REMAIN AS CHAIRMAN OF THE NEW CHIPSOFT UNIT AND WILL ALSO BECOME AN INTUIT EXECUTIVE VICE PRESIDENT IN ITS FISCAL THIRD QUARTER ENDED JUNE 30 AFTER GOING PUBLIC EARLIER THIS YEAR INTUIT'S NET INCOME MORE THAN DOUBLED TO 549000 OR FIVE CENTS A SHARE FROM 273000 OR A PROFORMA THREE CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 13 TO 218 MILLION FROM 193 MILLION FOR ITS FIRST NINE MONTHS INTUIT'S PROFIT ROSE 15 TO 55 MILLION OR 49 CENTS A SHARE FROM 48 MILLION OR 46 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 34 TO 861 MILLION FROM 643 MILLION CHIPSOFT REPORTED A LOSS OF 53 MILLION OR 33 CENTS A SHARE IN ITS FISCAL FOURTH QUARTER ENDED JUNE 30 COMPARED WITH A YEAREARLIER LOSS OF 44 MILLION OR 32 CENTS A SHARE SALES ROSE TO 23 MILLION FROM 1 MILLION FOR ITS FISCAL YEAR THE COMPANY REPORTED NET INCOME OF 37 MILLION OR 23 CENTS A SHARE ON REVENUE OF 698 MILLION VS A YEARPREVIOUS LOSS OF 865000 OR FIVE CENTS A SHARE SALES ROSE 38 TO 698 MILLION FROM 505 MILLION 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 9309030081 930903 BUSINESS BRIEF SANDOZ LTD FDA PROPOSES TO BLOCK SALE OF A DRUG TO NEW MOTHERS THE FOOD AND DRUG ADMINISTRATION SAID IT PROPOSED TO BLOCK SANDOZ PHARMACEUTICALS CORP FROM SELLING THE DRUG PARLODEL TO NEW MOTHERS TO TREAT BREAST ENGORGEMENT WHEN THEY DON'T BREAST FEED THE FDA TOOK THE ACTION AFTER A CONSUMER HEALTH GROUP CALLED FOR A BAN ON THE USE OF THE DRUG TO STOP MILK PRODUCTION PUBLIC CITIZEN'S PUBLIC RESEARCH GROUP SAID THE DRUG HAS CAUSED MORE THAN 220 ADVERSE DRUG REACTIONS INCLUDING HEART ATTACKS STROKES SEIZURES AND 13 DEATHS SINCE 1989 AN FDA ADVISORY COMMITTEE IN 1989 RECOMMENDED THAT THE DRUG NOT BE PRESCRIBED FOR THAT USE AND SEVERAL MAKERS SUBSEQUENTLY CHANGED THE DRUG'S LABEL THE DRUG GENERICALLY NAMED BROMOCRIPTINE IS USED TO TREAT OTHER CONDITIONS INCLUDING PARKINSON'S DISEASE IN A STATEMENT SANDOZ EAST HANOVER NJ A UNIT OF SWISS DRUG MAKER SANDOZ LTD SAID ITS STUDIES HAVE FAILED TO IDENTIFY A LINK BETWEEN THE DRUG AND THE ADVERSE EFFECTS ALLEGED BY PUBLIC CITIZEN THE FDA'S MOVE WILL BE PUBLISHED IN THE FEDERAL REGISTER FOLLOWED BY HEARINGS BEFORE AN ADMINISTRATIVE LAW JUDGE ABOUT 125 MILLION OF PARLODEL IS SOLD EACH YEAR TO MORE THAN 300000 WOMEN ACCORDING TO PUBLIC CITIZEN 9309030079 930903 BUSINESS BRIEF BANPONCE CORP PUERTO RICAN CONCERN TO BUY CHICAGO'S PIONEER BANCORP BANPONCE CORP OF SAN JUAN PUERTO RICO SAID IT HAS SIGNED AN AGREEMENT TO ACQUIRE ALL THE COMMON STOCK OF PIONEER BANCORP FOR 28 MILLION PIONEER BANCORP CHICAGO IS THE PARENT COMPANY OF PIONEER BANK & TRUST CO WHICH HAS 330 MILLION IN ASSETS AND LOCATIONS IN CHICAGO AND RIVER GROVE ILL BANPONCE A MAJOR BANK HOLDING COMPANY IN PUERTO RICO REPORTED TOTAL ASSETS OF 109 BILLION AS OF JUNE 30 1993 BANPONCE IS THE PARENT COMPANY OF BANCO POPULAR DE PUERTO RICO WHICH HAS 196 BRANCHES INCLUDING 30 IN NEW YORK ONE IN LOS ANGELES AND ONE IN CHICAGO 9309030078 930903 REVIEW & OUTLOOK EDITORIAL STOP THE SEVENTIES WE BLAME BILL CLINTON HE STARTED IT RESURRECTING GRATEFULLY DEAD FLEETWOOD MAC FOR HIS INAUGURATION'S FESTIVITIES EVER SINCE THERE HAS BEEN A STEALTHY EMERGENCE OF THE UNDEAD THE 1970S STOP IT WE PLEAD SOME CITE THE FIFTIES AS THE WORST WRONG IN ALL OF HISTORY THERE MAY HAVE BEEN NO DIMMER DECADE FOR POP CULTURE FASHION ECONOMICS POLITICS AND GENERAL TACKINESS THAN THE ONE THAT SAW WATERGATE WIN BUTTONS THE 55MILEPERHOUR SPEED LIMIT THE SWINE FLU VACCINE WAGE AND PRICE CONTROLS THE FALL OF SAIGON GASOLINE LINES METRIC CONVERSION IN THE US HAH THE CULTURAL REVOLUTION AND FEELINGS FLEETWOOD MAC WE COULD LIVE WITH A LITTLE AND WE'RE GLAD STEELY DAN HAS SURFACED FROM THEIR ISOLATION WARD TO START REELING IN THE YEARS AGAIN BUT THE BEE GEES YOU CAN TELL BY THE WAY WE USE OUR TALK THAT WE'RE NOT KEEN FOR ANOTHER BOUT OF SATURDAY NIGHT FEVER AND PLEASE HOLD THE SELFINDULGENT VIDEOS FROM THESE ANCIENTS SEVENTIES SIGNS ARE FLYING EVERYWHERE FROM HONG KONG TO NEW YORK ONE NOTES THE CLOPCLOPCLOP OF PLATFORM SHOES POSSIBLY THE LEAST ATTRACTIVE FOOTWEAR EVER DESIGNED HIPHUGGING BELLBOTTOMS WITH MULTICOLORED STRIPES ARE AGAIN INCREDIBLY DE RIGEUR IN THE OUTONTHEEDGE FASHION SET NO SIGHTINGS YET OF LEISURE SUITS WITH WHITE PIPING BUT ANYTHING'S POSSIBLE NOWADAYS IMAGINE THE SEVENTIES ICONS THAT COULD COME BACK TO TORTURE US ALL THERE HAS ALREADY BEEN AN OFFBROADWAY BRADY BUNCH PARODY NO DOUBT THE PRODUCERS ARE EVEN NOW PLOTTING BRADY BUNCH THE GRANDCHILDREN MOOD RINGS THE BAY CITY ROLLERS PET ROCKS JONATHAN LIVINGSTON SEAGULL PETER FRAMPTON GET READY FOR IT ALL FIGHTING THESE TIDES WE ADMIT IS POINTLESS SO A MODEST PROPOSAL IN RETURN FOR ALL THE SEVENTIES HORRORS LIKELY TO BE DISINTERRED A QUALITY ACT SHOULD BE RESTORED MAYBE WE COULD LIVE WITH MORE ANGST FROM JANIS IAN IF ELVIS PREFERABLY AFTER SLIMFAST WOULD RETURN AS WELL IF BASEBALL RETAINS THE DESIGNATED HITTER IT SHOULD ALSO GUARANTEE A RERUN OF THE 1975 WORLD SERIES OR BETTER YET GIVE POOR WASHINGTON DC A TEAM AGAIN YES DO A SEQUEL TO LOVE STORY BUT ONLY IF YOU CAN SOMEHOW RESURRECT WALKER PERCY WE WOULDN'T FIND WOODY ALLEN SO MISERABLE IF HE WERE STILL MAKING SEVENTIES CLASSICS LIKE SLEEPER AND ANNIE HALL FORTUNATELY SOME MAJOR SEVENTIES FORCES HAVE FADED FROM PROMINENCE AND SHOW LITTLE SIGN OF COMING BACK TO HAUNT US ERICH HONECKER STREAKING THE GANG OF FOUR DONNA SUMMERS YOU LIGHT UP MY LIFE JIMMY HOFFA MERE MEMORIES THE THING ABOUT THE UNDEAD THOUGH IS THAT YOU CAN NEVER TELL WHEN THEY'LL CREEP BACK MAYBE BILL CLINTON WILL OFFER A HELPING HAND MR PRESIDENT FORGET THE SEVENTIES THEY'RE NOT COMING BACK BOATING WITH TEDDY IS PASSE THIS IS THE NINETIES TURN OFF THE OLDIESBUTGOODIES STATION INSTEAD OF LISTENING TO YOUR SCRATCHY FLEETWOOD MAC COLLECTION YOU COULD BE HEARING THE SAME THING BROUGHT UP TO DATE ON A 10000 MANIACS CD DON'T LET THE NAME SCARE YOU ASK CHELSEA IN FACT HERE'S A DEAL YOU LIGHT A FIRE UNDER THE CULTURE OF THE NINETIES AND WE WON'T EVEN THINK OF BRINGING UP THE SIXTIES 9309030077 930903 LEISURE & ARTS ON SPORTS BOYS' GIVE DOUBLES A BOOST BY FREDERICK C KLEIN NEW YORK THE TENNIS SUMMER WHICH BEGINS IN OLD WORLD PARIS IN EARLY JUNE ENDS IN NEW WORLD NEW YORK IN SEPTEMBER AND IS PLENTY LONG ENOUGH FOR MOST FOR LUKE AND MURPHY JENSEN THOUGH IT WENT QUICKLY FASTEST SUMMER I CAN REMEMBER SAYS MURPHY BEST TOO SAYS LUKE TIME GOES FAST WHEN YOU'RE HAVING FUN WHICH IS WHAT THE JENSENS HAVE BEEN HAVING THE BEST TIME CAME IN JUNE IN PARIS WHEN THE BOUNCY BROTHERS FROM LITTLE LUDINGTON MICH POP 9000 WHO WERE PLAYING IN ONLY THEIR SECOND GRAND SLAM EVENT WON THE MEN'S DOUBLES CROWN AT THE FRENCH OPEN RICHES WELL A NICE CHECK AT LEAST RESULTED ALONG WITH A MEASURE OF ACCLAIM AND AT THE US OPEN IN PROGRESS IN THIS CITY'S BOROUGH OF QUEENS ATTENTION HAS BEEN PAID WE MEASURE OUR TYPICAL CROWDS IN THE HUNDREDS NOW AND SOMETIMES WE DRAW IN FOUR FIGURES SAYS LUKE BEFORE WE WERE COUNTING EM IN DOZENS DOUBLES PLAYERS WELCOME ANY NOTICE BECAUSE THEY USUALLY DON'T GET MUCH IT IS ONE OF THE CURIOSITIES OF TENNIS THAT A LOT MAYBE MOST OF THE TENNIS REAL PEOPLE PLAY IS DOUBLES BUT THE FORM TRAVELS THE PROFESSIONAL CIRCUITS IN SECRET CAN YOU NAME THE WORLD'S TOPRATED MEN'S DOUBLES TEAM THE TOPRATED WOMEN'S UNIT I REST MY CASE ANSWERS AT END PERHAPS IRONICALLY A PRIME REASON FOR THE ECLIPSE OF PROLEVEL DOUBLES IS THE GAME'S PROSPERITY FUELED IN PART BY ALL THOSE DOUBLES PLAYERS IN THE STANDS THE MEN'S AND WOMEN'S SINGLES WINNERS HERE EACH WILL POCKET 535000 WHILE THE WINNING DOUBLES TEAM MUST SPLIT 200000 WITH SUCH HUGE SINGLES PRIZES AT STAKE FEW OF TENNIS'S HEADLINERS WANT TO POOP THEMSELVES OUT IN THE DUBS THIS IS ESPECIALLY TRUE OF THE BEST MEN WHO IN MAJOR TOURNEYS LIKE THE US OPEN MUST WEATHER BESTOFFIVESET DUELS WITH A SUCCESSION OF NOTHINGTOLOSE FOES WHO CAN HIT THE BALL 100PLUS MPH AND THE ABSENCE OF THE BIG NAMES IN TURN MEANS THAT TELEVISION THAT MOLDER OF OUR SPORTS TASTES RARELY TURNS ITS EYE TOWARD DOUBLES MATCHES THIS ESPECIALLY IRKS LUKE JENSEN IF TV CAN SELL THE ABDOMINIZER' IT OUGHTA BE ABLE TO SELL DOUBLES HE OPINES ACTUALLY THE JENSEN BROTHERS THEMSELVES CALLED THE BOYS BY MOST AND SUNDRY LOOK LIKE ONE OF THE BEST SELLING POINTS OF DOUBLES IN SOME TIME THEIR JOINT PRESENCE ON COURT WARMS THE HEARTS OF PARENTS EVERYWHERE WHILE THE 27YEAROLD LUKE'S LONG HAIR THE 24YEAROLD MURPHY'S PENCHANT FOR WRAPAROUND SUNGLASSES AND THE FONDNESS OF BOTH FOR MOTORCYCLING AND PLAYING ROCKNROLL GUITAR ADD UP TO AN OBVIOUS APPEAL TO YOUTH MOREOVER IN ACTION THEY GO IN FOR THE KIND OF HIGHFIVING CHESTBUMPING CELEBRATIONS THAT FANS OF VARIOUS AGES AND SPORTS HAVE COME TO SAVOR THEY CALL IT PLAY' SO WHY NOT HAVE FUN ASKS MURPHY WITH LOGIC NONE OF THE ABOVE WOULD MATTER MUCH IF THE BOYS DIDN'T WIN OF COURSE WHICH IS WHERE THEIR FRENCH OPEN TRIUMPH COMES IN PRIOR TO THAT LUKE JENSEN WAS BEST KNOWN FOR HIS NICKNAME DUAL HAND LUKE WHICH STEMS FROM THE FACT THAT WHILE HE PLAYS RIGHTHANDED HE'S AN AMBIDEXTROUS SERVER WHO'S APT TO CHANGE HANDS BETWEEN HIS FIRST AND SECOND DELIVERIES LEFTY MURPHY WAS BEST KNOWN AS UH LUKE'S LITTLE BROTHER THE PAIR PLAYED PLENTY OF TENNIS GROWING UP IN LUDINGTON BECAUSE THEIR DAD HOWARD A ONETIME NEW YORK GIANT LINEMAN COACHED THE SPORT AT THE LOCAL HIGH SCHOOL AND BUILT A CONCRETE COURT IN THEIR BACKYARD THEIR YOUNGER TWIN SISTERS REBECCA AND RACHEL ALSO ARE EXCELLENT PLAYERS AND RACHEL RECENTLY TURNED PRO THE OLDER LUKE SHONE FIRST ACHIEVING A NO 1 NATIONAL JUNIOR RANKING IN 1984 MURPHY SHARED 10 NATIONAL AGEGROUP DOUBLES TITLES BOTH ATTENDED THE UNIVERSITY OF SOUTHERN CALIFORNIA ALBEIT AT DIFFERENT TIMES AND MURPHY ALSO PLAYED AT GEORGIA LUKE TURNED TO DOUBLES AFTER A NUMBER OF INJURIES ONE OF WHICH CAME WHEN HE ACCIDENTALLY PUT HIS HAND THROUGH A GLASS DOOR STALLED HIS SINGLES CAREER THEY TEAMED UP AS PROS EARLY THIS YEAR AFTER MURPHY HAD HAD SOME SEASONING WITH OTHER PARTNERS THE JENSENS BRING SOME OBVIOUS ASSETS TO THEIR GAME BOTH POSSESS BIG SERVES AND THEIR HEIGHT MURPHY IS 6FOOT5 LUKE 62 HELPS AT THE NET THEIR STYLE IS STRAIGHTFORWARD WE HIT THE BALL HARD AND IF IT COMES BACK WE HIT IT HARD AGAIN SAYS LUKE WITH TODAY'S HIGHTECH RACKETS IT DOESN'T MAKE SENSE TO DO MUCH ELSE PEOPLE THINK IT'S NATURAL WE TEAMED UP BUT BECAUSE OF THE DIFFERENCE IN OUR AGES WE HADN'T PLAYED TOGETHER MUCH FOR SIX OR SEVEN YEARS NOTES MURPHY BUT IT'S SAFE TO SAY THAT BEING BROTHERS PUT US AHEAD OF WHERE WE'D NORMALLY BE AT THIS STAGE SUCCESS WASN'T INSTANTANEOUS BUT IT CAME QUICKLY ENOUGH JUST BEFORE THE FRENCH OPEN THE JENSENS REACHED THE SEMIFINALS OF THE ITALIAN OPEN IN ROME AND THE FINALS OF A TOURNEY IN BOLOGNA ITALY IN PARIS THEY STARTED OFF BY INDULGING THEIR HABIT OF PLAYING LONG MATCHES WINNING THE THIRD AND DECIDING SETS OF THEIR FIRST TWO BY GAME SCORES OF 1210 WE WISH THAT JUST ONCE SOMEONE WOULD TANK' AGAINST US MOANS LUKE IN THE QUARTERFINALS THEY BEAT GORAN IVANISEVIC AND HENRI LECONTE IN THE SEMIS THE UNUSUALLY HIGHPOWERED PAIRING OF STEFAN EDBERG AND PETR KORDA AND IN THE FINALS IN THREE SETS THE YOUNG GERMANS MARC GOELLNER AND DAVID PRINOSIL THE VICTORY MEANT A CHECK OF 110000 FOR EACH OF THE BROTHERS AND A SWEETENED SHOE CONTRACT WITH ADIDAS IT ALSO ENHANCED THEIR MUSICAL OPPORTUNITIES WHICH THEY PURSUE BOTH WITH AND WITHOUT THE ALLTENNISGUY BAND CALLED WE'VE NEVER HEARD OF YOU EITHER IN WHICH THEY'RE JOINED BY JIM COURIER AND THE MCENROE BROTHERS JOHN AND PAT WHILE THE JENSENS HAVEN'T WON SINCE PARIS THEY HAD HIGH HOPES GOING INTO A LATEAFTERNOON SECONDROUND MATCH HERE YESTERDAY THE WAY THE CROWDS MOVE AND TALK THEY'RE NOISIER THAN WE ARE LAUGHS LUKE THIS IS OUR KIND OF PLACE ALAS FOR DOUBLES THE GENTS LOST THE MATCH TO DOUG FLACH AND DAVID WITT 64 75 THE NO 1 MEN'S DOUBLES TEAM IS TODD WOODBRIDGE AND MARK WOODFORDE OF AUSTRALIA GIGI FERNANDEZ OF ASPEN COLO AND NATALIA ZVEREVA OF BELARUS ARE THE TOPRATED WOMEN'S TEAM 9309030076 930903 POTOMAC WATCH WHY AL GORE SUDDENLY SOUNDS LIKE THE GIPPER BY PAUL A GIGOT HAVE YOU HEARD THE ONE ABOUT THE SPLINTERPROOF ASHTRAY STANDARD HOW ABOUT THE STEAM TRAP THAT COSTS 100 BUT LEAKS ANYWAY DON'T WORRY YOU WILL NEXT WEEK AS VICE PRESIDENT AL GORE RELATES THESE AND OTHER GOVERNMENT HORROR STORIES AS PART OF HIS BALLYHOOED PLAN TO REINVENT GOVERNMENT WHEN RONALD REAGAN TOLD SIMILARLY GOOEY TALES LIBERALS HOOTED DERISION AS A SENATOR MR GORE HIMSELF WORKED TO BAR THE REAGAN ADMINISTRATION FROM EVEN STUDYING HOW TO REFORM MONEYWASTING FEDERAL UTILITIES SEE PP 6061 OF WILLIAM NISKANEN'S BOOK REAGANOMICS FOR THE DETAILS BUT SUDDENLY AS VICE PRESIDENT HE'S A BORNAGAIN REFORMER OH WELL WE ALL HAVE OUR MOMENTS OF EPIPHANY AND IT'S UNFAIR TO BEGRUDGE MR GORE HIS ESPECIALLY IF HE CAN NOW DO SOME GOOD BUT IT IS WORTH NOTING THAT THE POLITICS BEHIND THIS NEW REFORM CAMPAIGN ARE DIFFERENT AND RATHER MORE SLY THAN RONALD REAGAN'S THE GIPPER WANTED TO REFORM GOVERNMENT IN ORDER TO SHRINK IT MR GORE WANTS TO REFORM GOVERNMENT IN ORDER TO BE ABLE TO EXPAND IT THIS PARADOX HELPS EXPLAIN WHY MR GORE'S MISSION DESERVES ONLY TWO CHEERS ALONG WITH HIS BOSS THE PRESIDENT MR GORE HAS THE MOST AMBITIOUS PLANS TO EXPAND GOVERNMENT SINCE THE 1960S IN HEALTH CARE NATIONAL SERVICE INDUSTRIAL POLICY AND ON AND ON YET UNLIKE THE 1960S THEY MUST PERSUADE A PUBLIC MUCH MORE SKEPTICAL ABOUT GOVERNMENT JUST ABOUT EVERY POLL THESE DAYS SHOWS THAT BY SOME 60 TO 35 OR SO VOTERS WANT A SMALLER GOVERNMENT WITH FEWER SERVICES AS MANY AS 70 DON'T TRUST GOVERNMENT TO DO THE RIGHT THING THAT'S A STUNNING REVERSAL SINCE THE 1960S WHEN GOVERNMENT WAS MUCH SMALLER AND SHOWS AN EVEN DEEPER ANTIGOVERNMENT ANTIPATHY THAN IN THE REAGAN HEYDAY OF 1980 THIS IS ESPECIALLY TRUE BY THE WAY FOR ROSS PEROT VOTERS WHOSE SUPPORT MR CLINTON URGENTLY WANTS IN HIS RECENT SURVEY FOR THE DEMOCRATIC LEADERSHIP COUNCIL CLINTON POLLSTER/ADVISER STAN GREENBERG FOUND PEROTIANS WERE MORE ANTIGOVERNMENT EVEN THAN GEORGE BUSH VOTERS THREE OUT OF EVERY FOUR WERE MORE LIKELY TO VOTE FOR A CANDIDATE WHO WANTS TO RADICALLY CHANGE THE WAY GOVERNMENT DOES THINGS CUT BUREAUCRACY MAKE GOVERNMENT MORE EFFICIENT AND PEROTIANS SAID THAT RADICALLY CHANGING GOVERNMENT WAS THE SECOND MOST IMPORTANT ACCOMPLISHMENT MR CLINTON COULD HAVE BY 1996 RIGHT AFTER CREATING EIGHT MILLION JOBS REINVENTING GOVERNMENT IS A PRECONDITION FOR REACHING THESE VOTERS SAYS MR GREENBERG IN BLUNTER WORDS BEFORE MR CLINTON CAN SELL AMERICANS MORE GOVERNMENT HE MUST FIRST CONVINCE THEM HE'S REFORMED THE GOVERNMENT WE ALREADY HAVE THUS DO EVEN LIBERALS BEGIN TO TELL REAGANSTYLE ANECDOTES ABOUT ASHTRAYS WHICH DOESN'T MEAN THE GORE EFFORT WON'T YIELD SOME USEFUL IDEAS FOR ONE THING THE VICE PRESIDENT RECRUITED A FIRSTRATE TEAM INCLUDING DAVID OSBORNE THE WRITER/ACTIVIST AND ELAINE KAMARCK OF THE PROGRESSIVE POLICY INSTITUTE WHICH WAS BILL CLINTON'S THINK TANK WHEN HE WAS STILL A NEW DEMOCRAT THE EARLY REPORTS SUGGEST THEY'LL BE CREATIVE IN TRYING TO FIX FEDERAL SYSTEMS MAKING IT EASIER TO HIRE AND FIRE EASING RULES ON PURCHASES STRIPPING REDTAPE AND THE LIKE THEY'LL EVEN TAKE A CRACK AT WEEDING OUT TENS OF THOUSANDS OF MIDDLEMANAGERS THROUGH ATTRITION AND A BUYOUT PLAN MUCH AS PRIVATE INDUSTRY HAS HAD TO DO TO BECOME MORE EFFICIENT IN THE PAST DECADE THIS MAY LET THEM AVOID A FIGHT WITH FEDERAL UNIONS BECAUSE MANY SUCH MANAGERS DON'T BELONG TO THE BIGGEST UNIONS WHERE THE REVIEW BLINKS HOWEVER IS IN CHALLENGING THE SCOPE AND PURPOSES OF GOVERNMENT THE AGRICULTURE DEPARTMENT FOR EXAMPLE WILL CLOSE ONLY 10 OF ITS MORE THAN 11000 COUNTY FIELD OFFICES THOUGH THERE ARE ONLY 3150 COUNTIES AND ONLY 16 OF THOSE ARE EVEN FARM COUNTIES MR GORE ALSO CAVED TO THE US MARITIME INDUSTRY WHICH IS LOSING WORKERS DESPITE SUBSIDIES PROTECTION AND JURASSIC LAWS THE GORE STAFF PROPOSED TO DEREGULATE THE INDUSTRY SAVING PERHAPS 23 BILLION OVER 10 YEARS YET AFTER THIS IDEA LEAKED THE DINOSAURS STRUCK BACK TRANSPORTATION SECRETARY FEDERICO PENA WHO REPRESENTS THE INDUSTRY AND UNIONS RATHER THAN TAXPAYERS RAISED A FUSS SO DID SENS ERNEST HOLLINGS AND JOHN BREAUX PROTECTING THEIR POSTERIORS IN SOUTH CAROLINA AND LOUISIANA THE REPORT NOW PROPOSES MERELY TO STUDY MARITIME REFORM THIS IS ALL A MISSED CHANCE BECAUSE IT'S PRECISELY LOUD OPPOSITION THAT COULD GIVE THE REPORT CREDIBILITY A PUBLIC SO SKEPTICAL OF GOVERNMENT WANTS TO SEE BODIES IN THE STREETS BEFORE IT BELIEVES REFORMS ARE REAL IT ALSO WOULDN'T HURT MR CLINTON'S REPUTATION FOR TOUGHNESS IF HE TOOK ON AN INTEREST GROUP OTHER THAN REPUBLICAN MILLIONAIRES FOR THEIR PART REPUBLICANS WILL MAKE A MISTAKE IF THEY DISMISS IT ALL AS A BIG YAWN AS BOB DOLE RECENTLY DID DO REPUBLICANS REALLY LIKE THE STATUS QUO THE SHREWDER STRATEGY UNDERSTOOD BY THE LIKES OF SENS BILL ROTH DELAWARE AND CONNIE MACK FLORIDA IS TO SEE MR GORE AND RAISE HIM IF EVEN AL GORE WANTS TO TELL AMERICANS THAT GOVERNMENT IS A MESS WHY SHOULDN'T REPUBLICANS AGREE AND THEN ADD THAT GOVERNMENT MIGHT DO MORE THINGS WELL IF IT DID FEWER THINGS 9309030075 930903 TORONTO EXCHANGE PLANS INDEX COMPOSED OF 100 LARGEST STOCKS TORONTO THE TORONTO STOCK EXCHANGE SAID IT PLANS TO LAUNCH NEXT MONTH AN INDEX COMPOSED OF ITS 100 LARGEST AND MOSTLIQUID STOCKS THE STOCK EXCHANGE CANADA'S LARGEST SAID IT EXPECTS THE NEW INDEX WILL REPLACE THE CURRENT TORONTO STOCK EXCHANGE 300 INDEX AS A MARKET BELLWETHER ESPECIALLY FOR FUND MANAGERS WHO AIM TO TRACK THE INDEX CLOSELY AND ACHIEVE SIMILAR RETURNS THE 300 COMPOSITE INDEX CONTAINS A NUMBER OF SMALL AND LESSLIQUID STOCKS THAT MAINSTREAM INSTITUTIONS DON'T INVEST IN SAID CHRIS BROWN MANAGING DIRECTOR OF INSTITUTIONAL EQUITIES AT TD SECURITIES THE BROKERAGE DIVISION OF TORONTODOMINION BANK MR BROWN WHO HELPED SET UP THE NEW INDEX SAID THE SMALL TORONTO 35 INDEX CONTAINS ONLY SENIOR COMPANIES AND THUS DOESN'T REFLECT OVERALL MARKET ACTIVITY THE NEW INDEX WILL INCLUDE MIDSIZE OIL AND GAS AND INDUSTRIAL CONCERNS WELLKNOWN RESOURCES CONCERNS SUCH AS NORANDA LTD AND COMPANIES SUCH AS TELECOMMUNICATIONS GIANT NORTHERN TELECOM LTD THE INDEX WHICH WILL BEGIN OCT 1 HAS BEEN GIVEN A VALUE OF 250 AS OF AUG 31 IT WILL BE ADJUSTED TO REFLECT CHANGES IN THE VALUE OF THE UNDERLYING SECURITIES BEFORE IT IS LAUNCHED TSE OFFICIALS SAID MR BROWN SAID HE EXPECTS INDEX MANAGERS WHO MANAGE ABOUT 15 OF PENSIONFUND ASSETS INSTITUTIONAL ACCOUNTS AND MUTUAL FUNDS WILL FIND THE NEW INDEX OF MOST USE THE 300 COMPOSITE INDEX LAUNCHED IN 1977 WILL REMAIN IN EXISTENCE THE EXCHANGE SAID IT PROBABLY WILL CONTINUE TO BE USED AS A BENCHMARK BY MORE ACTIVE INVESTORS MR BROWN ADDED THE EXCHANGE HAS FORMED AN ADVISORY GROUP TO STUDY THE CREATION OF DERIVATIVE PRODUCTS RELATED TO THE NEW TSE 100 INDEX THE FIRST SUCH PRODUCTS PROBABLY OPTIONS AND FUTURES COULD APPEAR WITHIN THREE TO SIX MONTHS MR BROWN SAID AT AUG 31 THE STOCKS TO BE REPRESENTED IN THE NEW INDEX HAD A QUOTED MARKET VALUE OF 20313 BILLION CANADIAN DOLLARS US1531 BILLION 9309030074 930903 LETTERS TO THE EDITOR WHY THE WEST HAS FAILED IN YUGOSLAVIA IN RESPONSE TO YOUR AUG 5 EDITORIAL SARAJEVO'S CRUX THE TERM BOSNIANS CANNOT BE APPLIED TO MUSLIMS ONLY IT IS A NAME THAT IS APPLICABLE TO ALL CITIZENS OF BOSNIASERBS CROATS MUSLIMS AND OTHERS THUS YOUR ASSESSMENT THAT THE PEACE NEGOTIATIONS CONSIST OF SELLING OUT THE BOSNIANS IS ERRONEOUS THE MAJOR REASON FOR THE FAILURE OF THE INTERNATIONAL COMMUNITY TO END THE WAR IN BOSNIA AND HERZEGOVINA WAS ITS INABILITY TO ADHERE TO THE PRINCIPLES OF INTERNATIONAL LAW UNDER THE PRETEXT OF SUPPORTING DEMOCRACY VS HARDLINE COMMUNISM THE WEST SUPPORTED SECESSION BY FORCE IN THE CASE OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA IT WAS FOLLOWED BY PREMATURE INTERNATIONAL RECOGNITION OF THE SECESSIONIST REPUBLICS WITHOUT PREVIOUSLY ENSURING THAT THESE NEW STATES WOULD FULFILL THE LEGITIMATE ASPIRATIONS OF ALL THEIR PEOPLES INCLUDING THE SERBS ONE MUST KEEP IN MIND THAT YUGOSLAVIA WAS THE HOMELAND OF THE SERBS REGARDLESS OF THE REPUBLIC THEY HAD BEEN BORN IN OR WERE LIVING IN FIRST THE INTERNATIONAL COMMUNITY DENIED THE SERBS THE RIGHT TO SELFDETERMINATION WHILE AT THE SAME TIME ACCEPTING THAT RIGHT AS LEGITIMATE CAUSE FOR THE INDEPENDENCE OF THE SLOVENIANS THEN THE RIGHT TO SELFDETERMINATION A COLLECTIVE RIGHT THAT CAN BE ATTRIBUTED ONLY TO THE PEOPLE WAS GRANTED TO TERRITORIES IN THE CASE OF CROATIA AND BOSNIAHERZEGOVINA SWEEPING DISCRIMINATION AGAINST THE SERBS WHICH OCCURRED EVEN BEFORE THE FORMAL INTERNATIONAL RECOGNITION OF THE SECESSIONIST REPUBLICS TOGETHER WITH THE LEGACY OF UNPUNISHED CRIMES FROM WORLD WAR II AND THE RESULTING DEEP MUTUAL MISTRUST PROVIDED THE CASUS BELLI THE FIGHTING ERUPTED BOTH IN CROATIA AND IN BOSNIAHERZEGOVINA NOT AS AN ACT OF AGGRESSION FROM OUTSIDE BUT AS A STRUGGLE BETWEEN ETHNICALLY DIVIDED LOCAL FORCES TO ARGUE THAT BOSNIAHERZEGOVINA'S MEMBERSHIP IN THE UN QUALIFIES THE WAR IN THAT REPUBLIC AS SERBIAN AGGRESSION IS FALSE BECAUSE THE WAR STARTED BEFORE BOSNIAHERZEGOVINA BECAME A MEMBER OF THE UN IN FACT IT WAS GRANTED MEMBERSHIP IN ORDER TO ENABLE THE QUALIFICATION OF THE WAR IN BOSNIAHERZEGOVINA AS OUTSIDE AGGRESSION IT IS A CRUEL INTERETHNIC CIVIL WAR AMONG THREE NATIONS THAT CAN BE SOLVED ONLY BY POLITICAL MEASURES BOSNIANBORN FORMER OFFICERS OF THE YUGOSLAV ARMY FIGHT ON ALL THREE SIDES ANY MILITARY INTERVENTION AGAINST ONE SIDE IN THE CONFLICT WILL BRING ABOUT THE ESCALATION OF FIGHTING AND WILL PROLONG DESTRUCTION AND CIVILIAN SUFFERING THERE CAN BE NO OUTSIDE MILITARY SOLUTION THAT CAN LAST IN BOSNIAHERZEGOVINA WITHOUT A LARGESCALE AND PROLONGED MILITARY PRESENCE TO ENFORCE IT THE INTERNATIONAL COMMUNITY WILL BEST RESPOND TO HUMANITARIAN CONCERNS BY HELPING THE PEACE NEGOTIATIONS IN GENEVA WITH THE AIM OF REACHING A SETTLEMENT RESPONDING TO THE LEGITIMATE INTERESTS OF ALL THREE NATIONAL COMMUNITIES IN BOSNIAHERZEGOVINA AN ETHNICALLY PARTITIONED STATE THAT WOULD BE RUN ON THE PRINCIPLES OF CONSENSUS IS FAR MORE HUMANE THAN A CONTINUATION OF A WAR IN ORDER TO ENFORCE THE PRINCIPLE OF RULE BY MAJORITY THAT MR IZETBEGOVIC IS TRYING TO IMPOSE AND THAT BOTH THE SERBS AND THE CROATS ARE REJECTING 9309030073 930903 TECHNOLOGY US AND RUSSIA MAY JOIN FORCES ON SPACE STATION BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN AN AGREEMENT THAT TURNS A GENERATION OF SPACE RIVALRY ON ITS HEAD THE US AND RUSSIA ANNOUNCED PLANS TO EXPLORE BUILDING AN INTERNATIONAL SPACE STATION TOGETHER AFTER YEARS OF RACING EACH OTHER TO ORBIT THE FIRST SATELLITE PUT HUMANS INTO SPACE LAND ON THE MOON AND EXPLORE MARS THE TWO COUNTRIES ARE ON A FAST TRACK TO POTENTIALLY MERGING THEIR LARGEST CIVIL SPACE PROJECTS CONCLUDING TWO DAYS OF TALKS HERE ON SPACE AND ENERGY COOPERATION VICE PRESIDENT AL GORE AND RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN AGREED THAT BOTH COUNTRIES COULD CUT COSTS AND DEVELOPMENT TIME BY SHARING IN SPACE EXPLORATION THEY ANNOUNCED IMMEDIATE STEPS TO BEGIN MORE JOINT SPACE MISSIONS AND TO BUILD AN INTERIM SPACE PLATFORM THAT BOTH RUSSIAN COSMONAUTS AND US ASTRONAUTS COULD VISIT AS EARLY AS 1997 YEARS BEFORE THE US COULD HOPE TO HAVE A SPACE STATION IN ORBIT BUT THEIR MOST DRAMATIC PLANS WERE ILLUSTRATED AT A NEWS CONFERENCE IN A BLACKANDWHITE DRAWING OF PRELIMINARY PLANS FOR A USRUSSIAN SPACE STATION IT INCLUDED PIECES OF HARDWARE FROM AMERICA'S CURRENT SPACESTATION PARTNERS JAPAN EUROPE AND CANADA ALTHOUGH THESE PARTNERS HAVE ONLY BEGUN TO BE CONSULTED ON A MERGER NEITHER THE US NOR RUSSIA WILL DECIDE ON WHETHER TO APPROVE THE PLANS UNTIL A STUDY IS COMPLETED BY NOV 1 AND AFTER THEIR OWN POLITICAL AND NATIONAL SECURITY CONCERNS ARE ADDRESSED AT HOME BUT THE MATURITY OF THE MERGER PLANS AND OPENNESS AND OPTIMISM SURPRISED SOME SPACE EXPERTS WHO HAD EXPECTED A SLOWER MORE CAUTIOUS APPROACH THE UNITED STATES AND RUSSIA ARE CONVINCED THAT A UNIFIED SPACE STATION CAN OFFER SIGNIFICANT ADVANTAGES TO ALL CONCERNED THE TWO SIDES SAID THE JOINT STATEMENT SAID APPROVAL OF A MERGER HINGED ON SATISFYING TECHNICAL AND PARTNERSHIP CONSIDERATIONS THE POSSIBILITY OF A MERGED SPACE STATION HIGHLIGHTED A PACKAGE OF AGREEMENTS REACHED BY MR GORE AND MR CHERNOMYRDIN IN TALKS THAT FOCUSED ON IMPROVING ECONOMIC COOPERATION BETWEEN THE TWO FORMER COLD WAR ENEMIES THE ECONOMIC EFFORT WAS INITIATED IN SUMMIT TALKS IN APRIL BETWEEN PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN AND FOLLOWS TWO YEARS OF AMERICAN EFFORTS TO SHORE UP THE YELTSIN GOVERNMENT WITH US AND INTERNATIONAL AID PROBABLY THE MOST IMPORTANT THING IS THE POLITICAL MESSAGE IT THE SPACE COOPERATION SENDS THAT WE'RE SERIOUS ABOUT COOPERATING WITH THEM SAID GABRIEL SCHOENFELD A RUSSIAN STUDIES EXPERT AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES BUT THE US CLEARLY HOPES TO WIN SOMETHING FOR ITSELF BY MERGING ITS PLANS FOR THE STILLUNBUILT SPACE STATION WHICH HAS BEEN TAINTED BY COST OVERRUNS AND DELAYS SINCE THE PLANS WERE ANNOUNCED IN 1984 WITH RUSSIA'S MR GORE SAID COMBINING THE STATIONS WOULD RESULT IN SIGNIFICANTLY LOWER COSTS WOULD HAVE MORE POWER AND MORE CAPACITY FOR SCIENCE EXPERIMENTS AND COULD BE OPERATING IN SPACE YEARS EARLIER THAN THE USLED STATION ON THE US HOME FRONT MR GORE SAID THE FIRSTBLUSH REACTIONS FROM POLICY MAKERS ON CAPITOL HILL AND THE SPACE STATION'S INTERNATIONAL PARTNERS WAS POSITIVE HOWEVER CONGRESS IS IN RECESS KEY LAWMAKERS HAVEN'T BEEN FULLY BRIEFED AND PLANS AREN'T SPECIFIC ENOUGH TO DEFINE THE CRUCIAL IMPACT ON US JOBS SUPPORT FOR THE SPACE STATION ALREADY IS SHAKIER IN CONGRESS THAN EVER BEFORE AND ANALYSTS WONDER WHETHER IT CAN SURVIVE MORE UNCERTAINTY IN ADDITION THE INTERNATIONAL PARTNERS ARE UNHAPPY AT BEING SHUT OUT OF THE RUSSIAN MERGER TALKS SO FAR AND HAVE SERIOUS CONCERNS BUT JOHN LOGSDON DIRECTOR OF THE SPACE POLICY INSTITUTE AT GEORGE WASHINGTON UNIVERSITY CALLED THE USRUSSIAN AGREEMENT TREMENDOUSLY HISTORIC FOR REVERSING OUR TRADITIONAL SPACE COMPETITION WITH THE RUSSIANS AND SAID IT GIVES A BROADER MEANING TO WHAT WE'RE DOING IN SPACE ADMINISTRATION OFFICIALS SAID A MERGED STATION WOULD USE A MAJORITY OF COMPONENTS FROM THE CURRENT SPACE REDESIGN NOW BEING WORKED ON AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION NASA ADMINISTRATOR DANIEL GOLDIN SAID HE WOULDN'T EXPECT A HUGE LOSS OF US JOBS SUBJECT TO FINAL DETAILS DUE NOV 1 THE AGREEMENT PAVES THE WAY FOR US ASTRONAUTS TO BEGIN SPENDING UP TO A TOTAL OF TWO YEARS ON RUSSIA'S MIR SPACE STATION WHICH HAS BEEN IN ORBIT SINCE 1986 AND TO USE RUSSIAN MIR MODULES TO CONDUCT US EXPERIMENTS THE US SAID IT WILL PAY RUSSIA 400 MILLION BETWEEN 1994 AND 1997 FOR ITS SERVICES IN A FOLLOWON PHASE OFFICIALS DESCRIBED AN INTERIM STATION THAT WOULD BE ASSEMBLED IN SPACE TO ACCOMMODATE VISITORS DOING SCIENCE EXPERIMENTS USING A NEXTGENERATION RUSSIAN MODULE A US LABORATORY MODULE AND THE US SPACE SHUTTLE THE TWO COUNTRIES ALSO WILL BEGIN WORK ON DESIGNING A COMMON SPACE SUIT AND ON JOINT DEVELOPMENT OF A MORE POWERFUL SOLARPOWER SYSTEM AND OTHER SPACESTATION SYSTEMS 9309030072 930903 BUSINESS BRIEF EMC CORP CONCERN COMPLETES MAGNA EPOCH SYSTEMS ACQUISITIONS EMC CORP SAID IT COMPLETED ITS ACQUISITIONS OF MAGNA COMPUTER CORP AND EPOCH SYSTEMS INC FOR A PURCHASE PRICE OF ABOUT 47 MILLION EMC SHARES OR ABOUT 158 MILLION MAGNA COMPUTER OF SALEM NH IS A CLOSELY HELD MAKER OF COMPUTER TAPE STORAGE DEVICES EPOCH SYSTEMS OF WESTBOROUGH MASS IS A CLOSELY HELD MAKER OF NETWORK DATA MANAGEMENT SYSTEMS AND SOFTWARE FOR WORKSTATION USERS EMC WHICH IS BASED IN HOPKINGTON MASS MAKES COMPUTER DATA STORAGE AND RETRIEVAL PRODUCTS 9309030071 930903 WHOSE LABOR DAY IS IT ANYWAY BY HARRIS W FAWELL WHICH IS IT LABOR DAY OR ORGANIZED LABOR DAY IF THE SECOND THEN THE ASSUMPTION IS THAT MONDAY'S HOLIDAY HONORS ONLY A SMALL FRACTION OF THE WORKING MEN AND WOMEN OF THIS COUNTRY IF ON THE OTHER HAND WE ACKNOWLEDGE THAT PROGRESS HAS INDEED BEEN MADE IN THE WORKPLACE DESPITE THE DECLINE OF ORGANIZED LABOR THEN THE TRUE SPIRIT OF LABOR DAY IS RECOGNIZED ARE THE LAWS WE PASS TO BE LIMITED ONLY TO THE UNION SETTING OR SHOULD WE BE CREATING OPPORTUNITIES THAT BENEFIT ANYONE WHO WANTS TO WORK OBVIOUSLY THE LATTER APPROACH IS PREFERABLE BUT TOO OFTEN IT SEEMS CONGRESS LOOKS BACKWARD TO THE WORKPLACES OF THE 1950S RATHER THAN FORWARD TO THE WORKPLACES OF THE FUTURE TWENTY YEARS AGO CONGRESS DID THE RIGHT THING BY PASSING THE EMPLOYEE RETIREMENT INCOME SECURITY ACT ERISA WHICH GREATLY EXPANDED EMPLOYEE PENSIONS AND OTHER EMPLOYEE BENEFIT PLANS INCLUDING TRAINING PROGRAMS FOR UNION AND NONUNION WORKERS ALIKE THE ACT CREATED ONE SET OF RULES FOR EMPLOYERS NATIONWIDE BUT LEFT COMPANIES AND THEIR EMPLOYEES FREE TO CREATE THEIR OWN SOLUTIONS TO PENSION BENEFITS AND TRAINING NEEDS THE MARKETPLACE AND NOT WASHINGTON WAS SEEN AS THE BEST SOURCE OF THOSE SOLUTIONS NOW LEGISLATION HAS BEEN INTRODUCED IN THE HOUSE THAT WOULD PERMIT THE STATES TO ESTABLISH NONUNIFORM SETS OF APPRENTICESHIP STANDARDS THAT HISTORY HAS SHOWN FAVOR ONE SELECT GROUP THE UNION GROUP AT THE EXPENSE OF MANY OTHERS THERE IS NOTHING NEW ABOUT GROUPS WITH SPECIAL INFLUENCE TRYING TO GAIN AN ADVANTAGE VIRTUALLY EVERY PROFESSION OR TRADE GROUP IN HISTORY HAS ATTEMPTED TO REGULATE ITS NUMBER OF COMPETITORS THE MEDIEVAL GUILDS LIMITED ACCESS BY BIRTHRIGHT UNTIL RECENTLY LAWYERS BLOCKED COMPETITORS BY ENFORCING STRICT RESIDENCY RULES THE BUILDING AND CONSTRUCTION UNIONS ARE NO DIFFERENT AND THEIR METHODS ARE NOT PARTICULARLY ORIGINAL THEIR IDEA IS TO RESTRICT ACCESS TO TRAINING TO THOSE COMMITTED TO BEING DUESPAYING MEMBERS IF THE ONLY QUALIFIED WORKERS ARE UNION WORKERS THEN ONLY UNION CONTRACTORS WILL GET THE WORK SHUTTING OUT OPEN SHOP COMPETITION A DIRECT AND OPEN ATTEMPT IN CONGRESS TO ENDORSE THIS TYPE OF DISCRIMINATION WOULD CLEARLY FAIL BECAUSE OF A JUSTIFIABLE PUBLIC OUTCRY THEREFORE THE APPROACH OF THE HOUSE LEGISLATION IS INDIRECT THE NEW BILL SPONSORED BY HOWARD BERMAN D CALIF WOULD ALLOW A STATE LEGISLATURE OR REGULATORY AGENCY TO SET STANDARDS THAT ONLY EXISTING UNION PROGRAMS COULD MEET AT THE BEHEST OF LOCAL CONSTRUCTION UNIONS FOR EXAMPLE A STATE COULD APPROVE ONLY ONE APPRENTICESHIP PLAN THE ONE THEY ENDORSE OR THE LOCAL GOVERNMENT COULD REQUIRE THAT ALL EMPLOYERS SEEKING TO TRAIN THEIR WORK FORCE MUST REGISTER THEIR APPRENTICES IN THE UNION PROGRAM THESE EXAMPLES ARE NOT IDLE CONJECTURE EACH HAS BEEN TRIED IN SEVERAL STATES BUT FOR THE FACT THAT THE FEDERAL ERISA LAW PREEMPTED SUCH STATE LAWS AS DETERMINED BY THE FEDERAL COURTS DISCRIMINATION WOULD BE THE RULE IN VARIOUS PARTS OF THE COUNTRY THE NEW LEGISLATION WOULD OVERTURN THOSE COURT DECISIONS AND CLEAR THE WAY FOR ABUSE BY POWERFUL SPECIAL INTERESTS THE EXPERIENCE OF CALIFORNIA DRAMATIZES THIS POINT THE CALIFORNIA APPRENTICESHIP COUNCIL HAD ESTABLISHED POLICIES THAT ENSURED THAT APPRENTICESHIP PLANS OFFERED BY NONUNION COMPANIES WOULD BE DENIED IN JANUARY 1992 A STATE COMMISSION THE STATE'S LITTLE HOOVER COMMISSION FOUND THAT THE POLICIES HAMPERED EFFORTS TO INCREASE APPRENTICESHIP PARTICIPATION AMONG MINORITIES AND WOMEN IN THE CONSTRUCTION INDUSTRY SPECIFICALLY THE COMMISSION FOUND THAT THE STATE APPRENTICESHIP COUNCIL HAD SHOWN RELUCTANCE IN CERTIFYING MORE THAN ONE PROGRAM IN A GIVEN AREA BECAUSE SECOND OR PARALLEL PROGRAMS ARE USUALLY NOT UNIONSPONSORED AND THE CALIFORNIA APPRENTICESHIP COUNCIL IS COMPOSED IN LARGE PART OF UNION REPRESENTATIVES THE TRAINING BILL CURRENTLY PENDING IN THE HOUSE WOULD HELP PROMOTE SUCH RELUCTANT POLICIES BY NULLIFYING THE ERISA PREEMPTION OF STATE APPRENTICESHIP LAWS THIS WOULD ALLOW STATES LIKE CALIFORNIA TO DISCRIMINATE AGAINST NONUNION APPRENTICESHIP AND TRAINING PROGRAMS CONGRESS SHOULD INSTEAD BE IN THE BUSINESS OF EXPANDING TRAINING OPPORTUNITIES IN THE TRUE SPIRIT OF LABOR DAY IT IS OUR DUTY TO ENSURE THAT EVERYONE GETS THAT FAIR CHANCE TO SUCCEED REP FAWELL R ILL SERVES ON THE HOUSE EDUCATION AND LABOR COMMITTEE 9309030070 930903 BUSINESS BRIEF SECURITY FIRST CORP THRIFT MEETS OTS STANDARDS OFFICE CLEARS ITS OPERATION SECURITY FIRST CORP THE CLEVELAND HOLDING COMPANY FOR SECURITY FEDERAL SAVINGS & LOAN ASSOCIATION SAID THE UNIT HAS FULLY COMPLIED WITH OFFICE OF THRIFT SUPERVISION MANDATES AND WAS CLEARED BY THE OFFICE IN MARCH 1992 THE OTS ORDERED THE ASSOCIATION TO IMPROVE ITS POLICIES AND PROCEDURES REGARDING EMPLOYEE LOANS MODIFIED OR EXTENDED LOANS GENERAL VALUATION ALLOWANCE REQUIREMENTS AND LOANS TO ONE BORROWER WITH MANDATE COMPLIANCE THE THRIFT NO LONGER NEEDS OFFICE APPROVAL TO ISSUE DIVIDENDS DEBT OR EXECUTIVE BONUSES AS OF JUNE 30 SECURITY FIRST HAD ASSETS OF 399 MILLION COMPARED WITH 369 MILLION A YEAR EARLIER SECURITY FEDERAL OPERATES NINE OFFICES IN NORTHEASTERN OHIO 9309030069 930903 OTC FOCUS THE SEARCH FOR SMALLCAP STOCKS BOOSTS MARKET TO FOURTH STRAIGHT RECORD CLOSE BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE SEARCH FOR SMALL CAPITALIZATION STOCKS IS HELPING NASDAQ ISSUES OUTPACE ISSUES LISTED ON THE NEW YORK STOCK EXCHANGE NASDAQ STOCKS REACHED A FOURTH CONSECUTIVE HIGH TODAY WITH THE HELP OF SOME MEDICALRELATED ISSUES THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION COMPANIES SET ITS OWN RECORD INCHING UP 096 POINT OR 03 TO 24807 NASDAQ NATIONAL MARKET VOLUME ROSE TO 291810300 SHARES FROM WEDNESDAY'S 226975400 SHARES CONSECUTIVE RECORD HIGHS FOR NASDAQ STOCKS AND A SLUGGISH ECONOMY INDICATE THAT INVESTORS ARE TURNING TO SMALLER COMPANIES THAT HAVE THE PROMISE OF EXPLOSIVE GROWTH THERE'S A REAL TREND TOWARD MOMENTUM INVESTING SAID JAMES BROADFOOT MANAGER OF THE IVY EMERGING GROWTH FUND THEY BID THOSE STOCKS UP THEY LOOK FOR GROWTH REGARDLESS OF WHAT THE ECONOMY IS DOING SO THIS IS AN IDEAL ENVIRONMENT FOR EMERGING GROWTH STOCKS NASDAQ STOCKS ARE ACTING UNBELIEVABLY SAID TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO THE DOW JONES INDUSTRIAL AVERAGE SLUMPED 1900 POINTS OR 052 TO 362610 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DIPPED 077 OR 030 TO 25611 TRADERS SAID NASDAQ MARKET PLAYERS PAID LITTLE ATTENTION TO A GOVERNMENT REPORT OUT YESTERDAY THAT SAID JOBLESS CLAIMS FOR THE WEEK ENDED AUG 28 FELL BY 7000 TO 324000 BUT THE MARKETS WILL TAKE A CLOSE LOOK TODAY WHEN THE LABOR DEPARTMENT'S AUGUST EMPLOYMENT FIGURES COME OUT GRUNTAL'S MR CONNELL SAID PRESIDENT CLINTON'S REMARKS GOT SOME ATTENTION HOWEVER SOME MEDICALRELATED STOCKS SURGED ON NEWS THAT CLINTON SAID THE WHITE HOUSE WOULDN'T IMPOSE PRICE CONTROLS ON THE HEALTHCARE INDUSTRY CHIRON JUMPED 2 1/2 TO 68 1/2 US HEALTHCARE CLIMBED 2 7/8 TO 47 1/8 AMGEN GAINED 1 5/8 TO 39 1/8 BIOGEN SURGED 1 3/8 TO 35 1/8 OTHER MEDICALRELATED ISSUES GRAPPLING WITH REGULATORY ISSUES AND NEW PRODUCTS DIDN'T FARE AS WELL MEDIMMUNE PLUMMETED 4 5/8 TO 19 1/8 THE GAITHERSBURG MD BIOTECHNOLOGY COMPANY SAID WEDNESDAY THE FOOD & DRUG ADMINISTRATION HAS POSTPONED A SCHEDULED SEPT 23 REVIEW OF THE PRODUCT LICENSE APPLICATION FOR RESPIVIR A DRUG DEVELOPED BY MEDIMMUNE TO TREAT A RESPIRATORY CONDITION THAT CAUSES BRONCHIAL INFECTION AND PNEUMONIA IN INFANTS AND CHILDREN MEDIMMUNE SAID THE FDA HAS NOT COMPLETED ALL ITS WORK ON THE APPLICATION MEDICAL ACTION INDUSTRIES DROPPED 15/16 TO 1 3/4 AFTER IT SAID IT HAS TEMPORARILY SUSPENDED SHIPMENTS OF ITS STERILE LAPAROTOMY SPONGES AFTER TESTS REVEALED THEY HAD A FORM OF GROWTH THE TESTING METHODS FAILED TO IDENTIFY THE GROWTH TAROVIT INDUSTRIES HAD POSITIVE NEWS WITH REGULATORS AND CLIMBED 1 TO 9 ITS UNIT TARO PHARMACEUTICALS INC RECEIVED FDA APPROVAL FOR ITS ABBREVIATED TOPICAL ANTIFUNGAL CREAM GENZYME FELL 2 3/4 TO 32 3/4 AFTER COWEN & CO DOWNGRADED ITS NEARTERM RATING OF THE STOCK TO NEUTRAL FROM BUY AND TRIMMED EARNINGS ESTIMATES FOR THE CAMBRIDGE MASS BIOTECHNOLOGY COMPANY COWEN MAINTAINED A LONGTERM BUY RECOMMENDATION AND SEES 1995 AS A YEAR OF EARNINGS GROWTH FOR THE COMPANY SEVERAL RETAILERS' STOCKS REACTED ACCORDING TO WHETHER THEY HAD POSITIVE OR DISAPPOINTING NEWS ABOUT AUGUST SAMESTORE SALES OR SALES IN STORES OPERATING FOR A YEAR OR MORE TODAY'S MAN IN MOORESTOWN NJ CLIMBED 1/2 TO 16 1/4 AFTER IT REPORTED AN 11 INCREASE IN SAMESTORE SALES ROSS STORES DIPPED 1/4 TO 13 5/8 THE RETAILER IN NEWARK CALIF SAID AUGUST SAMESTORE SALES FELL 4 MEN'S WEARHOUSE CLIMBED 3/4 TO 22 THE COMPANY IN FREMONT CALIF SAID AUGUST SAMESTORE SALES ROSE 25 OTHER ISSUES HELPING THE NASDAQ COMPOSITE INDEX GAIN WERE FINANCIAL SERVICES AND BANKING STOCKS MUTUAL FUND MANAGER T ROWE PRICE ASSOCIATES GAINED 2 1/4 TO 62 1/2 AND STATE STREET BOSTON ROSE 3/8 TO 34 1/4 MIDLANTIC CORP CLIMBED 7/8 TO 26 5/8 AFTER LEHMAN BROTHERS INITIATED INVESTMENT COVERAGE OF THE BANK HOLDING COMPANY WITH AN OUTPERFORM RATING CORESTATES FINANCIAL CORP GAINED 1/8 TO 57 7/8 FIFTH THIRD BANCORP CLIMBED 1/2 TO 54 1/2 9309030068 930903 KATY INDUSTRIES GETS RIVAL TAKEOVER OFFER VALUED AT 262 MILLION KATY INDUSTRIES INC WHICH HAS AGREED TO A 2575ASHARE OFFER TO BE TAKEN PRIVATE BY THE FAMILY THAT CONTROLS IT RECEIVED AN UNSOLICITED RIVAL BID OF AT LEAST 29 A SHARE OR 262 MILLION FROM AN INVESTMENT PARTNERSHIP TRADING IN SHARES OF THE ELGIN ILL MANUFACTURER WAS HALTED YESTERDAY ON THE NEW YORK STOCK EXCHANGE PENDING DISCLOSURE OF THE NEWS AND DIDN'T RESUME THE STOCK WAS TRADING AT 25875 UP 25 CENTS THE HEIRS OF KATY FOUNDER WALLACE CARROLL HAD SOUGHT IN 1992 TO ACQUIRE THE 48 OF THE COMPANY THEY DON'T OWN AT 22 A SHARE BUT OUTSIDE DIRECTORS REJECTED THE BID AS INADEQUATE THIS YEAR THE FAMILY SWEETENED THE BID TO 2575 A SHARE OR 1099 MILLION AND THAT PROPOSAL WON BOARD APPROVAL KATY SHAREHOLDERS ARE TO VOTE ON THE PROPOSAL SEPT 16 BUT LATE YESTERDAY ROSECLIFF PENSLER PARTNERS LP MADE PUBLIC A LETTER TO KATY CHAIRMAN JACOB SALIBA OFFERING AT LEAST 29 A SHARE FOR THE WHOLE COMPANY THE PARTNERSHIP IS AN ENTITY TO BE FORMED BY NEW YORK MERCHANT BANKER ROSECLIFF INC AND PENSLER CAPITAL CORP A MERCHANT BANKING CONCERN LED BY FORMER DILLON READ MANAGING DIRECTOR SANFORD N PENSLER GOLDMAN SACHS & CO KATY'S INVESTMENT BANKERS APPROVED THE CARROLL FAMILY'S SWEETENED DEAL BUT THERE HAS BEEN SOME GRUMBLING FROM MINORITY HOLDERS THAT THE OFFER WASN'T ADEQUATE AND SOME HAVE ASSERTED THAT THE COMPANY IS WORTH MORE THAN 30 A SHARE THE PARTNERSHIP SAID IT HAS MORE THAN 35 MILLION IN EQUITY COMMITTED TO FINANCE THE TRANSACTION AND THAT OTHER FUNDING COULD COME FROM KATY'S CASH BALANCES AND CASH EQUIVALENTS AS WELL AS THE SALE OF THE ABOUT 800000 SHARES OF UNION PACIFIC CORP AND OTHER KATY ASSETS DEPENDING UPON THE RESULTS OF OUR DUE DILIGENCE THE PARTNERSHIP SAID WE MAY BE WILLING TO PAY CONSIDERATION IN EXCESS OF 29 PER SHARE IT NOTED THAT THE STOCKHOLDERS' VOTE WOULD HAVE TO BE DELAYED MR SALIBA DECLINED TO COMMENT BEYOND ACKNOWLEDGING RECEIPT OF THE PROPOSAL YESTERDAY 9309030067 930903 ECONOMY TEXACO PROJECT FOR RUSSIAN OIL FIELD RECEIVES 28 MILLION OF US ASSISTANCE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC RECEIVED US LOAN GUARANTEES AND INSURANCE TO RESTORE PRODUCTION TO AN OLD RUSSIAN OIL FIELD AS PART OF A PROGRAM BY THE OVERSEAS PRIVATE INVESTMENT CORP TO BACK 25 BILLION OF DEVELOPMENT IN THE FORMER SOVIET UNION OVER THE NEXT YEAR THE US AGENCY KNOWN AS OPIC PROVIDES ASSISTANCE TO US COMPANIES IN DEVELOPING COUNTRIES BY PROVIDING RISK INSURANCE AND LOAN GUARANTEES FOR SPECIFIC PROJECTS WHILE THE TEXACO PROJECT AT 80 MILLION IS RELATIVELY SMALL THE DEVELOPMENT IS AN IMPORTANT FIRST STEP FOR THE OIL COMPANY'S VENTURE INTO RUSSIA AND ACTS AS A TEST RUN FOR THE AGENCY OPIC IS PROVIDING 28 MILLION OF GUARANTEES AND INSURANCE THE OPIC LOAN GUARANTEES FOR TEXACO WERE PART OF A PACKAGE OF ENERGY AND INVESTMENT AGREEMENTS SIGNED YESTERDAY IN TALKS IN WASHINGTON BETWEEN VICE PRESIDENT AL GORE AND RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN THEY ALSO ANNOUNCED THE FORMATION OF A NEW INVESTMENT FUND TO BE MANAGED BY PAINEWEBBER INC WITH GUARANTEES FROM BOTH OPIC AND THE RUSSIAN GOVERNMENT TO ENCOURAGE INVESTMENT IN RUSSIA AND THEY TOOK THE FIRST STEP TO EXPAND THE RANGE OF EXPORTS TO RUSSIA FINANCED BY THE EXPORTIMPORT BANK AFTER THE BREAKUP OF THE SOVIET UNION WESTERN OIL COMPANIES FLOODED THE NEW REPUBLICS WITH EXECUTIVES SEEKING TO PROVIDE MUCHNEEDED TECHNOLOGY IN EXCHANGE FOR DEVELOPING THE REGION'S VAST OIL FIELDS WHERE PRODUCTION HAD PLUNGED AFTER YEARS OF DETERIORATION BUT AFTER THE INITIAL EXCITEMENT ACTUAL DEVELOPMENT HAS BEEN SLOW AND HALTING AMID OIL INDUSTRY FEARS THAT COSTS WERE MUCH HIGHER THAN EXPECTED THE POLITICAL RISK WAS STILL GREAT TAXES AND ROYALTIES HAD YET TO BE WORKED OUT AND A FULL MARKETORIENTED SYSTEM HAD YET TO FULLY DEVELOP THE TWO COUNTRIES HAVE SINGLED OUT ENERGY AS A PRIME TARGET FOR INVESTMENT AND TRADE AS THEY SEEK TO ELEVATE THE ECONOMIC PART OF THEIR RELATIONSHIP WHITE HOUSE OFFICIALS SAID ONE OF THE KEY MESSAGES TO RUSSIAN DELEGATES IN THE TALKS WAS THEIR NEED TO REFORM RUSSIAN PROPERTY RIGHTS TAXATION AND CONTRACT LAW AND TO CUT RED TAPE TO PROMOTE US INVESTMENT IN RUSSIA'S OIL AND GAS DEVELOPMENT AN ADMINISTRATION OFFICIAL ESTIMATED THE RUSSIAN SYSTEM IS HOLDING UP A POTENTIAL 4 BILLION TO 5 BILLION OF US INVESTMENT IN RUSSIA BOTH COUNTRIES AGREED TO APPOINT OMBUDSMEN TO HELP COMPANIES ON BOTH SIDES THAT HIT OBSTACLES IN COMPLETING DEALS OPIC'S FIRST BACKING OF AN OIL VENTURE IN THE FORMER SOVIET UNION WAS COMPLETED LAST MAY IN A SMALL DEVELOPMENT BY THE CONOCO INC SUBSIDIARY OF DUPONT CO WILMINGTON DEL THE OPIC SPOKESMAN SAID THAT IF THE CONOCO AND TEXACO PROJECTS SUCCEED YOU'LL SEE A LOT OF LARGER PROJECTS HE SAID OPIC HOPES TO RECEIVE ADDITIONAL FUNDS AS PART OF THE CLINTON ADMINISTRATION'S RUSSIAN AID PACKAGE THAT COULD ENABLE IT TO PROVIDE 25 BILLION IN BACKING FOR OIL AND OTHER PROJECTS OVER THE NEXT YEAR TEXACO'S AGREEMENT IS TO RESTORE PRODUCTION TO 150 IDLE OIL WELLS IN THE SUTORMIN FIELD IN WESTERN SIBERIA WHICH WAS DISCOVERED IN 1975 THIS IS OUR FIRST SHOT IN RUSSIA SAID A SPOKESMAN AT TEXACO'S WHITE PLAINS NY HEADQUARTERS SO FAR TEXACO HAS RESTORED PRODUCTION TO NINE WELLS AND GENERATED 4000 BARRELS A DAY OF PRODUCTION OVER THE TWOYEAR LIFE OF ITS AGREEMENT WHAT TEXACO CALLS THE FIRST STAGE THE COMPANY HOPES TO BOOST OUTPUT TO 30000 BARRELS DAILY THE COMPANY'S FINANCING CAME FROM CHEMICAL BANKING CORP OPIC IS PROVIDING A 10 MILLION LOAN GUARANTEE AGAINST SUCH POSSIBILITIES AS RENEWED NATIONALIZATION OF THE OIL FIELDS OR A CHANGE IN GOVERNMENT OR SOME OTHER EVENT THAT KILLS THE PROJECT THE AGENCY ALSO IS PROVIDING TEXACO 18 MILLION OF INSURANCE FOR THE PROJECT BARBARA ROSEWICZ IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9309030066 930903 INTERNATIONAL CHILE'S UNEMPLOYMENT RATE SANTIAGO CHILE UNEMPLOYMENT IN CHILE STOOD AT 49 DURING THE MAYJULY PERIOD UP FROM 47 A YEAR EARLIER THE CHILEAN GOVERNMENT REPORTED THE NATIONAL STATISTICS INSTITUTE SAID THE SLIGHT INCREASE WAS DUE TO SEASONAL FACTORS IT SAID THE UNEMPLOYMENT RATE SHOULD DROP AGAIN SOON AS THE CROP SEASON STARTS LATER THIS MONTH IN THE FRUITGROWING REGIONS WHICH NORMALLY EMPLOY ABOUT 500000 PEOPLE 9309030065 930903 TECHNOLOGY BRIEF CRAY RESEARCH INC NEW PARALLEL SUPERCOMPUTER IS INSTALLED AT WESTINGHOUSE CRAY RESEARCH INC EAGAN MINN SAID IT INSTALLED A PROTOTYPE OF ITS FIRST SUPERCOMPUTER OFFERING MASSIVELY PARALLEL PROCESSING ABILITIES THE INSTALLATION OF THE T3D SUPERCOMPUTER AT THE WESTINGHOUSE ENERGY CENTER A FACILITY OF WESTINGHOUSE ELECTRIC CORP IN MONROEVILLE PA MARKS A LATE ENTRANCE FOR CRAY INTO MASSIVELY PARALLEL PROCESSING IN WHICH SUPERCOMPUTERS STRING TOGETHER HUNDREDS TO THOUSANDS OF MICROPROCESSORS THAT WORK SIMULTANEOUSLY TO PROCESS DATA CRAY SAID IT PLANS TO ANNOUNCE THE PRICE AND SPEED OF ITS NEW COMPUTER THIS MONTH THE COMPANY ALSO SAID IT AGREED TO JOINTLY DEVELOP APPLICATIONS SOFTWARE FOR THE T3D WITH NASA'S JET PROPULSION LABORATORY IN PASADENA CALIF AND THE PITTSBURGH SUPERCOMPUTING CENTER AN INSTITUTION FUNDED BY CARNEGIE MELLON UNIVERSITY THE UNIVERSITY OF PITTSBURGH AND WESTINGHOUSE CRAY SAYS THE T3D IS FASTER THAN ITS 40 MILLION C90 SUPERCOMPUTER WHICH COMPUTES 16 BILLION CALCULATIONS A SECOND 9309030064 930903 LIBERALISM'S LONG GOODBYE BY WILLIAM KRISTOL ON AUG 25 A PHOTO ON THE FRONT PAGES OF BOTH THE WASHINGTON POST AND THE NEW YORK TIMES SHOWED BILL CLINTON ON HOLIDAY FOR THE FIRST TIME IN HIS ROCKY PRESIDENCY SMILING AND WAVING FROM A YACHT OFF MARTHA'S VINEYARD NEXT TO HIM STOOD TEDDY KENNEDY SMILING AND WAVING IN AN ALMOST IDENTICAL POSE THE BREEZY CAPTION IN THE POST READ CRUISING THROUGH CAMELOT YET SEVEN MONTHS INTO THE CLINTON PRESIDENCY IT IS CLEAR THAT THERE HAS BEEN NO REVIVAL OF THE SPIRIT OF CAMELOT THIS IS NOT PRIMARILY DUE TO ANY DIFFERENCE IN THE POLITICAL ABILITY OR PERSONAL QUALITIES OF BILL CLINTON AND JOHN KENNEDY RATHER IT IS DUE TO THE CHANGE IN THE CHARACTER OF AMERICAN LIBERALISM OVER THE PAST 30 YEARS IN JOHN KENNEDY'S DAY AMERICAN LIBERALISM HAD HIGH HOPES AND NOBLE DREAMS AND CONFIDENCE AN EXCESSIVE AND OFTEN FOOLISH CONFIDENCE IN ITS ABILITY TO ACHIEVE THEM THAT CONFIDENCE IS NOW GONE AND THE ATTEMPT TO EVOKE THE SPIRIT OF CAMELOT SERVES ONLY TO EMPHASIZE THE CONTRAST BETWEEN THE TWO ERAS FOR IN BILL CLINTON'S AMERICA LIBERALISM WHILE EVERYWHERE DOMINANT IS ALTOGETHER BANKRUPT THE OUTLINES OF THE CONTEMPORARY LIBERAL WORLDVIEW ARE NOT HARD TO TRACE LIBERALISM IS COMMITTED IN POLITICS TO FURTHER EXPANSION OF THE WELFARE STATE AND IN SOCIAL MATTERS TO AN AGENDA OF INDIVIDUAL AUTONOMY AND LIBERATION LIBERALISM IN THIS SENSE PERVADES THE KEY INSTITUTIONS OF AMERICAN SOCIETY INCLUDING ALL BRANCHES OF THE FEDERAL GOVERNMENT HOLLYWOOD AND THE MEDIA AND THE COUNTRY'S LEADING EDUCATIONAL AND CULTURAL INSTITUTIONS BUT BENEATH ITS APPARENT SUCCESS CONTEMPORARY LIBERALISM IS IN CRISIS THINK BACK TO THE AMERICAN LIBERALISM OF PRESIDENT KENNEDY'S DAY LIBERALS THEN WERE CONFIDENT THAT GOVERNMENT COULD FINETUNE THE ECONOMY THEY WERE CONFIDENT THAT ENLIGHTENED GOVERNMENT ACTION COULD VIRTUALLY DO AWAY WITH RACISM AND POVERTY AFTER SIGNING ONE PIECE OF GREAT SOCIETY LEGISLATION LYNDON JOHNSON PROCLAIMED THAT THE DAYS OF THE DOLE ARE NUMBERED THE MORE PHILOSOPHIC LIBERALS WERE CONVINCED THAT A RATIONALIST HUMANISM COULD SUPPLANT RELIGIOUS BELIEF AS THE SOURCE OF DECENCY AND MORALITY AND LIBERALS THEN ALSO BELIEVED THAT INTERNATIONAL COOPERATION AND ALLIANCES FOR PROGRESS WOULD SOON REPE ANTIQUATED AND RETROGRADE FORCES LIKE NATIONALISM AND ETHNIC TRIBALISM DO TODAY'S LIBERALS TRULY HAVE FAITH IN ANY OF THESE PROPOSITIONS COMPARE THE INAUGURAL ADDRESS OF JOHN KENNEDY WITH THAT OF BILL CLINTON WHERE THE ONE IS ASSERTIVE THE OTHER IS PLAINTIVE PRESIDENT KENNEDY HAILED A NEW GENERATION OF AMERICANS WHO WOULD GLADLY BEAR THE BURDEN OF A LONG TWILIGHT STRUGGLE AGAINST TYRANNY POVERTY DISEASE AND WAR AND WHO WOULD SUPPORT THE USE OF AMERICAN MILITARY POWER WHERE NECESSARY TO ASSURE THE SURVIVAL AND THE SUCCESS OF LIBERTY IN 1993 PRESIDENT CLINTON BY CONTRAST IDENTIFIED THE URGENT QUESTION OF OUR TIME AS WHETHER WE CAN MAKE CHANGE OUR FRIEND AND NOT OUR ENEMY IN SHORT THE OLDER LIBERALISM WAS CONFIDENT OF PROGRESS CONTEMPORARY LIBERALISM SEEKS MERELY TO KEEP UP WITH CHANGE AND SEEMS RATHER DOUBTFUL AS TO WHETHER IT CAN HANDLE EVEN THAT RATHER UNINSPIRING TASK INDEED LIBERALISM'S LOSS OF CONFIDENCE HAS BEEN OPENLY PROCLAIMED BY NONE OTHER THAN HILLARY RODHAM CLINTON IN HER NOWFAMOUS SPEECH AT THE UNIVERSITY OF TEXAS THIS PAST APRIL MRS CLINTON VIRTUALLY DECLARED LIBERALISM'S BANKRUPTCY WE ARE IN A CRISIS OF MEANING WE LACK AT SOME CORE LEVEL MEANING IN OUR INDIVIDUAL LIVES AND MEANING COLLECTIVELY WE NEED A NEW POLITICS OF MEANING WE NEED A NEW DEFINITION OF CIVIL SOCIETY NOW A CONFIDENT LIBERALISM ONCE KNEW THAT THE LAST THING WE NEED IS THE VAGUELY FEELGOOD VAGUELY ILLIBERAL MISHMASH THAT GOES BY THE NAME OF THE POLITICS OF MEANING TODAY'S ATTEMPT TO REACH FOR SO SODDEN A LIFE PRESERVER IS TESTIMONY TO THE FACT THAT CONTEMPORARY LIBERALISM NO LONGER KNOWS WHAT TO BELIEVE LIBERALISM TODAY DERIVES WHAT ENERGY IT HAS FROM CURRENTS THAT ARE SO FAR OUT OF THE MAINSTREAM THE RADICAL GAYRIGHTS MOVEMENT THE VOTINGRIGHTS ARGUMENTS OF LANI GUINIER THAT IT MUST SEEK TO KEEP THEM IN CHECK WHILE FINDING ITSELF UNABLE TO EXPLAIN EXACTLY WHAT IS WRONG WITH THEM AND IF THIS IS WHERE LIBERALISM GETS ITS ENERGY ITS REAL POLITICAL STRENGTH NOW RESTS ALMOST ENTIRELY ON THE SELFINTEREST OF INDIVIDUALS AND GROUPS WHO ARE DEPENDENT ON GOVERNMENT AND WHO HAVE A MATERIAL STAKE IN LIBERAL POLICIES AND DOCTRINES DESPITE THE MOUNDS OF WRITING AND BEEHIVES OF ACTIVITY THEN LIBERALISM IS IN A DEEP CRISIS ALL THE CHURNING AT THE PERIPHERY CONCEALS THE HOLLOWNESS AT THE CORE TRUE LIBERALS CAN STILL INTIMIDATE THOSE WHO MIGHT LAUNCH SERIOUS ASSAULTS AGAINST THEM THEY DO NOT HESITATE TO ENFORCE COMPLIANCE WITH THEIR DOGMAS OR TO ROOT OUT HERESY WHEREVER IT REARS ITS POLITICALLY INCORRECT HEAD YET ALL THE POLLS SUGGEST THAT ON QUESTIONS RANGING FROM VALUES TO THE ROLE OF GOVERNMENT MORE AMERICANS CONSIDER THEMSELVES CONSERVATIVE THAN LIBERAL THAT IS WHY MRS CLINTON HAS FOUND IT NECESSARY TO SAY IN A RECENT INTERVIEW THAT SHE IS A CONSERVATIVE ON VALUES IN SHORT TODAY'S LIBERALISM HARDLY DARES GOVERN IN ITS OWN NAME AND YET IT DOES GOVERN AMERICA WITH MR CLINTON IN POWER LIBERALISM NOW HAS NO EXCUSE AND ALSO NO EXIT IN THIS SENSE THE ELECTION OF BILL CLINTON MAY PROVE TO BE FOR LIBERALS A PYRRHIC VICTORY AND WHAT OF CONSERVATISM IF ONCE UPON A TIME CONSERVATIVES FELT A BURKEAN RESPONSIBILITY TO UPHOLD SOUND SOCIAL HABITS AND TRADITIONAL CUSTOMS AGAINST LIBERAL DEBUNKING NOW IT IS LIBERALISM THAT CONSTITUTES THE OLD ORDER DICTATING CORRECT HABITS AND PERMISSIBLE CUSTOMS WHILE CONSERVATIVES CAN BECOME THE EXPONENTS OF LIGHT AND AIR OF FREE AND OPEN DEBATE OF DEMYSTIFICATION AND EVEN OF POLITICAL AND INTELLECTUAL LIBERATION CONSERVATIVES INCREASINGLY HAVE THE OPPORTUNITY TO CALL INTO QUESTION THE VERY PURPOSES AND PREMISES OF LIBERAL POLICY AND TO DEBATE HOW BEST TO RECONSTRUCT THE INSTITUTIONS OF A FREE SOCIETY THE BANKRUPTCY OF LIBERALISM THUS INVITES THE POSSIBILITY OF A BOLD NEW GOVERNING CONSERVATISM MR KRISTOL WHO SERVED AS CHIEF OF STAFF TO VICE PRESIDENT DAN QUAYLE IS NOW DIRECTOR OF THE BRADLEY PROJECT ON THE '90S THIS IS ADAPTED FROM AN ARTICLE IN THE SEPTEMBER ISSUE OF COMMENTARY 9309030063 930903 SAATCHI & SAATCHI IS MIXING POLITICS WITH ADVERTISING WORK ON ELECTION CAMPAIGNS IN RUSSIA EASTERN EUROPE AMONG GROWING INTERESTS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SAATCHI & SAATCHI PLC IS FINDING A GROWING BUSINESS IN RUNNING FOREIGN POLITICAL CAMPAIGNS LOGICALLY THE BRITISH ADVERTISING AGENCY'S NEW GOVERNMENT COMMUNICATIONS UNIT IS HEADED BY AN EXPOLITICIAN JOHN MAPLES FORMER ECONOMIC SECRETARY TO THE UNITED KINGDOM TREASURY WHO LOST HIS SEAT IN THE HOUSE OF COMMONS LAST YEAR NOW UNDER MR MAPLES SAATCHI AND ITS PUBLIC RELATIONS UNIT ROWLAND CO ARE GETTING BUSINESS RUNNING POLITICAL CAMPAIGNS IN POLAND AND RUSSIA SAATCHI'S ANNUAL BILLINGS FOR POLITICAL ADVERTISING CAMPAIGNS ARE BETWEEN 20 MILLION AND 30 MILLION AND PUBLIC AFFAIRS WORK IN POLITICS IS ABOUT 6 MILLION THAT COMPARES WITH ANNUAL REVENUE FOR THE ENTIRE GROUP OF 748 MILLION 111 BILLION IN 1992 POLITICAL WORK ACCOUNTS FOR MAYBE 2 OR 3 OF SAATCHI'S BUSINESS BUT IT'S LUCRATIVE IN POLAND SAATCHI HAS TAKEN ON THE LIBERAL PARTY WE ARE ADVISING THEM ON HOW A POLITICAL PARTY ACTS SAYS MR MAPLES IN RUSSIA SAATCHI HELPED TO EDUCATE PRESIDENT BORIS YELTSIN ON FOCUS GROUPS TO BETTER DEVELOP STRATEGY FOR THAT COUNTRY'S RECENT REFERENDUM SAATCHI PREVIOUSLY HAS LOBBIED FOR THE TURKISH GOVERNMENT IN THE UK AND A FEW YEARS BACK LOBBIED THE UK GOVERNMENT IN BEHALF OF HONG KONG CITIZENS TO GET THEM BRITISH PASSPORTS BEFORE CHINA REGAINS CONTROL OF HONG KONG IN 1997 PRIVATIZATIONS ARE ANOTHER SOURCE OF BUSINESS SAATCHI HANDLED THE PUBLIC RELATIONS WORK FOR BRITISH STEEL SOME YEARS AGO NOW EASTERN EUROPE IS PROVIDING A NEW SOURCE OF POTENTIAL CLIENTS ROMANIA IS THE FIRST SAATCHI'S SUBSIDIARY ROWLAND IS DOING A PR CAMPAIGN TO ATTRACT FOREIGN INVESTMENT TO THE COUNTRY SAATCHI ISN'T CURRENTLY LOBBYING IN BEHALF OF ANY FOREIGN COUNTRY AND JUST TURNED DOWN IRAN TWO WEEKS AGO THAT NATION WANTED ROWLAND TO HELP IT IMPROVE ITS IMAGE IN THE UK REPRESENTING IRAN WOULD BE UNTENABLE SAYS PETER RAE ROWLAND'S CHIEF EXECUTIVE WHAT THEY REALLY NEED IS A POLICY CHANGE NOT AN IMAGE CHANGE HE SAYS REFERRING TO THE COUNTRY'S WELLPUBLICIZED LINKS TO TERRORIST GROUPS BUT IT'S LOBBYING OR WHAT SAATCHI CALLS PUBLIC AFFAIRS THAT TAKES UP HALF OF MR MAPLES'S TIME AS CHAIRMAN OF ROWLAND SALLINGBURY CASEY ROWLAND'S PUBLIC AFFAIRS DIVISION MR MAPLES HELPED THE PORT IN DEVON ENGLAND WIN A RECENT CONTRACT TO REFIT BRITAIN'S NUCLEAR SUBMARINES IT WAS A VERY HIGHPROFILE PROJECT HE SAYS SAATCHI HASN'T GIVEN MR MAPLES A TARGET FOR GROWTH HIS JOB IS TO ARRANGE CONTACTS PROVIDE FOCUS THEN LET THE PROFESSIONALS TAKE OVER AND HE ALSO HAS LEARNED SOMETHING RESEARCHING HOW TO TAKE A COMPLEX ARGUMENT AND REDUCE IT TO A MERE MESSAGE HE SAYS WILL BE USEFUL IN HIS FUTURE POLITICAL CAREER HE SAYS HE IS 95 CERTAIN HE WILL RUN AGAIN FOR A SEAT IN PARLIAMENT DURING THE NEXT ELECTIONS HE FIGURES THEY COULD BE CALLED AS SOON AS MID1995 IT'S VERY INTERESTING TO BE BACK IN THE BUSINESS WORLD WHERE WHAT YOU DO IS MEASURED AGAINST SPECIFIC TARGETS HE SAYS BUT BEING IN GOVERNMENT MEANS DEALING WITH PROBLEMS THAT ARE MUCH MORE INTRACTABLE HE ADDED 9309030062 930903 BUSINESS BRIEF POCO PETROLEUMS LTD ENERGY CONCERN OFFERS CASH WARRANTS TO BUY PROPERTIES POCO PETROLEUMS LTD SAID IT OFFERED CASH AND SPECIAL WARRANTS WITH A COMBINED VALUE OF ABOUT 247 MILLION CANADIAN DOLLARS US186 MILLION TO ACQUIRE PROPERTIES PRODUCING 1400 BARRELS A DAY OF LIQUIDS AND 9 MILLION CUBIC FEET A DAY OF NATURAL GAS THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID IT OFFERED SPECIAL WARRANTS CONVERTIBLE INTO POCO COMMON SHARES TO JOINTVENTURE PARTICIPANTS AND A CHOICE OF CASH OR WARRANTS TO LIMITED PARTNERSHIPS FOR THEIR INTERESTS IN PROPERTIES OPERATED BY POCO IT SAID THE OFFER IS BASED ON A SHARE PRICE OF C8375 US6312 POCO CLOSED YESTERDAY AT C10625 IN TRADING ON THE TORONTO STOCK EXCHANGE A POCO SPOKESMAN SAID THE COMPANY WOULD ISSUE 29 MILLION NEW SHARES IF THE LIMITED PARTNERSHIPS ALL CHOOSE WARRANTS HE SAID POCO HAD 781 MILLION SHARES OUTSTANDING AS OF JUNE 30 9309030061 930903 TECHNOLOGY MCCAW VENTURE HAS PHONE PACT FOR AIRPLANES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL IN AN ESCALATION OF THE AIRTELEPHONE WARS AMERICAN AIRLINES WILL REPLACE GTE CORP SERVICE ON ITS FLEET OF 650 JETS WITH A NEW DIGITAL SERVICE FROM A MCCAW CELLULAR COMMUNICATIONS INC JOINT VENTURE THE CONTRACT COVERING ONE OF THE LARGEST US COMMERCIAL AIRLINE FLEETS COULD HAVE A VALUE OF HUNDREDS OF MILLIONS OF DOLLARS AND QUITE POSSIBLY A BILLION OR MORE OVER THE 10YEAR LIFE OF THE CONTRACT SAID A MCCAW SPOKESMAN THE AMERICAN CONTRACT ALSO ENABLES MCCAW WHICH HAS AGREED TO BECOME A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO TO CHALLENGE SERIOUSLY GTE AIRFONE'S MARKET POSITION MCCAW IS THE NATION'S LARGEST CELLULAR PHONE COMPANY AND HAS AMBITIONS TO DOMINATE ALL WIRELESS COMMUNICATION SERVICES AIRFONE IS THE LARGEST AND UNTIL RECENTLY SOLE PROVIDER OF AIRTOGROUND COMMUNICATION SERVICES TO THE AIRLINES GTE'S CURRENT SERVICE IS AN AGING ANALOG SYSTEM BUT IS QUICKLY BEING CONVERTED TO THE SUPERIOR DIGITAL SYSTEM THIS IS A LANDMARK DAY FOR US SAID KEITH GRINSTEIN PRESIDENT OF CLAIRCOM COMMUNICATIONS A SEATTLE JOINT VENTURE OF MCCAW AND HUGHES NETWORK SYSTEMS A GENERAL MOTORS CORP UNIT CLAIRCOM NOW HAS CONTRACTS TO INSTALL ITS DIGITAL PHONE AND DATA AIRTOGROUND SYSTEM IN THE PASSENGER SEATS OF MORE THAN 1200 US JETS BUT GTE WHICH IS BASED IN STAMFORD CONN MAINTAINS IT IS STILL NO 1 IN THE MARKET AND MORE THAN CAPABLE OF HOLDING ITS OWN AGAINST THE CLAIRCOM SERVICE A GTE SPOKESWOMAN WAS QUICK TO POINT OUT THAT GTE AIRFONE HAS SIGNED CONTRACTS FOR ITS NEW DIGITAL COMMUNICATIONS SERVICE WITH DELTA AIR LINES AND UAL CORP'S UNITED AIRLINES THESE CONTRACTS COVER 1300 PLANES CLAIRCOM'S WIN IS THE KIND OF THING YOU EXPECT IN A COMPETITIVE MARKET SHE SAID THERE'S GOING TO BE SOME CHURN ALL TOLD GTE PROVIDES SERVICE FROM PHONES INSTALLED IN 2014 AIRCRAFT ABOUT 2400 PLANES WORLDWIDE ARE STILL UP FOR GRABS THE GTE SPOKESWOMAN ADDED THIRDPLACE INFLIGHT PHONE CORP OAKBROOK TERRACE ILL HAS SIGNED ONE CONTRACT TO PROVIDE A DIGITAL COMMUNICATION SYSTEM ON 412 USAIR JETS USAIR IS A UNIT OF USAIR GROUP INC CLAIRCOM WILL REPLACE THE AGING GTE ANALOG PHONE SYSTEM COMMONLY SEEN ON THE SEATBACKS OF MANY AIRLINERS WITH A NEW DIGITAL VOICE AND DATA SYSTEM MCCAW SAID THE SYSTEM DESIGNED BY HUGHES EMPLOYS SMALLER LIGHTER PHONES AND PROVIDES CLEARER VOICE CALLS THAN CURRENT AIRLINE PASSENGER PHONES CLAIRCOM WILL BE DELIVERED VIA DIGITAL TRANSMITTERS ON THE PLANE TO A NETWORK OF GROUND STATIONS INSTALLED BY MCCAW BY NEXT YEAR A MCCAW SPOKESMAN SAID THE SYSTEM WILL LET PASSENGERS PLUG THEIR LAPTOP COMPUTERS INTO THE SPECIAL SOCKET IN THE PHONE AND SEND DATA TO THE GROUND PEOPLE ON THE GROUND WILL ALSO BE ABLE TO PAGE PASSENGERS ON THE PLANE BY PLACING A CALL TO A SPECIAL 800 NUMBER AND HAVING AN OPERATOR SEND A TEXT MESSAGE TO THE DIGITAL SCREEN ON THE PLANE'S SEATBACK THE PASSENGER BY PUNCHING A BUTTON ON THE PHONE CAN MESSAGE THE SYSTEM TO EITHER REJECT ALL PAGES OR ACCEPT AND RELAY THEM EVENTUALLY PASSENGERS WILL BE ABLE TO GET CALLS THAT'S SORT OF LIKE GTE'S NEW DIGITAL OFFERING WHICH USES A NEW GENSTAR NETWORK OF GROUND STATIONS AND WILL OFFER DIGITAL PHONE AND DATA SERVICE INCLUDING FACSIMILE TRANSMISSION THE QUALITY AND SOUND WILL BE IMPROVED OVER AIRFONE'S CURRENT EQUIPMENT GTE'S SPOKESWOMAN SAID WHILE PAGING WON'T SPECIFICALLY BE OFFERED THE SYSTEM WILL NOTIFY A PASSENGER THAT A CALL IS WAITING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MCCAW SHARES CLOSED AT 56875 DOWN 50 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GTE CLOSED AT 36375 DOWN 375 CENTS AND AT&T CLOSED AT 62875 DOWN 25 CENTS 9309030060 930903 MARKETING BRIEF NOTED MORE USED CDS THE DISTRIBUTION ARM OF SONY CORP BECAME THE LAST MAJOR DISTRIBUTION COMPANY TO REVISE ITS PLANS TO WITHHOLD ADVERTISING DOLLARS FROM RETAILERS THAT SELL USED COMPACT DISKS SONY SAID RETAILERS OF USED CDS WOULD BE ELIGIBLE FOR SONY MUSIC'S ADALLOWANCE PROGRAM BUT SONY WON'T SUPPORT ADS MENTIONING USED CDS WHILE THE MUSIC INDUSTRY STILL LARGELY OPPOSES THE SALE OF USED CDS FOUR OF THE MAJOR DISTRIBUTORS HAVE BACKED DOWN IN THE FACE OF RESTRAINTOFTRADE LAWSUITS 9309030059 930903 INTERNATIONAL BRIEF SWISS BANK CORP NET INCOME NEARLY DOUBLED DURING FIRST HALF OF YEAR SWISS BANK CORP REPORTED THAT NET INCOME NEARLY DOUBLED IN THE FIRST HALF AND SAID IT EXPECTS ITS RESULTS TO CONTINUE ON AN UPWARD TRACK FOR THE REST OF THE YEAR THE GROUP SAID EARNINGS JUMPED TO 719 MILLION SWISS FRANCS 494 MILLION FROM 364 MILLION FRANCS IN THE YEAREARLIER HALF HOWEVER THE LATEST RESULT INCLUDES A ONETIME EXTRAORDINARY GAIN OF 233 MILLION FRANCS FROM THE SALE OF A POWER COMPANY THE BANK ALSO REPORTED A SURGE IN LOANLOSS PROVISIONS IN THE FIRST HALF THE GROUP SAID BADDEBT PROVISIONS AND DEPRECIATION JUMPED 66 TO 124 BILLION FRANCS FROM 745 MILLION FRANCS THE INCREASE WAS THE LARGEST OF THE THREE MAJOR SWISS BANKING GROUPS ANALYSTS EXPRESSED SURPRISE AT THE SIZE OF THE PROVISIONS THE PROVISIONS ARE REALLY ENORMOUS SAID BANK JULIUS BAER CHIEF ANALYST HANS KAUFMANN SBC IS REALLY TAKING CAUTION TO THE LIMIT BUT GEORGES BLUM WHO BECAME CHIEF EXECUTIVE THIS YEAR SAID WE ANTICIPATE THAT SWISS BANK IN 1993 WILL EXCEED THE PREVIOUS YEAR'S NET PROFIT BY A SIGNIFICANT MARGIN AND SEE GOOD PROSPECTS FOR 1994 9309030057 930903 SPEAKING OF BUSINESS SPECULATING ON THE MARKET BY LINDLEY H CLARK JR THE US ECONOMY CONTINUES TO STRUGGLE ALONG SHOWING FRESH SIGNS OF WEAKNESS ALMOST DAILY YET THE STOCK AND BOND MARKETS KEEP CHARGING UPWARD WHAT'S GOING ON HERE A LARGE PART OF THE ANSWER IS THAT THERE'S A GREAT DEAL OF MONEY IN THE ECONOMY MUCH MORE THAN THE ECONOMY NEEDS THE FEDERAL RESERVE SYSTEM HAS EXPRESSED UNCERTAINTY ABOUT HOW IT SHOULD MAKE POLICY BUT THE DECISION HAS USUALLY COME DOWN ON THE SIDE OF MORE MONEY FOR THE BANKS THE MONETARY BASE CONSISTING OF BANK RESERVES AND CURRENCY IN CIRCULATION HAS GROWN AT A SHARP RATE OF MORE THAN 12 SINCE APRIL MANY BANKERS AREN'T ESPECIALLY EAGER TO LEND AND EVEN THOSE THAT ARE HAVE SOME TROUBLE FINDING BORROWERS BUSINESSMEN AND CONSUMERS ARE PRIMARILY INTERESTED IN CLEANING UP BALANCE SHEETS THAT BECAME OVERLOADED WITH DEBT IN THE 1980S THIS HAS LED TO AN INFLATION OF FINANCIAL ASSETS BANKS ARE LOADING UP ON GOVERNMENT BONDS AND IN THE PROCESS PUSHING DOWN INTEREST RATES PRIVATE INVESTORS FOR A WHILE WERE GOBBLING UP GOVERNMENT SECURITIES TOO BUT YIELDS HAVE DECLINED SO MUCH THAT INVESTORS ARE LOOKING FOR MORE WHERE IN THE STOCK MARKET OF COURSE SO BOND AND STOCK PRICES HAVE BOOMED FEW PEOPLE SEEM DISTURBED BY THE WEAKNESS OF THE ECONOMIC ENVIRONMENT THE INFLATIONADJUSTED GROSS DOMESTIC PRODUCT EVEN AFTER A SLIGHT UPWARD ADJUSTMENT GREW AT AN ANNUAL RATE OF ONLY 13 IN THE FIRST HALF OF THIS YEAR THE 51 ANALYSTS INTERVIEWED MONTHLY BY BLUE CHIP ECONOMIC INDICATORS A NEWSLETTER PUBLISHED IN SEDONA ARIZ LOOK FOR THE GDP TO RALLY TO AN AVERAGE GAIN OF 32 IN THE SECOND HALF BUT THEY EXPECT GROWTH TO SLIP TO 28 NEXT YEAR MOST ANALYSTS EXPECT THE BOND AND STOCK MARKETS TO CONTINUE MOVING UPWARD FOR AT LEAST A WHILE LONGER DAVID RESLER CHIEF ECONOMIST OF NOMURA SECURITIES INTERNATIONAL NOTES THAT ONE REASON FOR CONTINUING BOND MARKET STRENGTH IS A TIGHT SUPPLY OF TREASURY SECURITIES A MONTHLONG HIATUS IN THE SUPPLY OF NEW TREASURY COUPON ISSUES IS COMING UP HE SAYS EXTRA BUYING BY FOREIGN CENTRAL BANKS HAS MEANT THAT THE TREASURY IS ABLE TO CUT BACK ITS OFFERINGS OF WEEKLY BILLS RATHER THAN INCREASE THEM BUT MANY ANALYSTS THINK TROUBLE IS NOT FAR AHEAD WRIGHT INVESTORS' SERVICE SAYS STOCK PRICES MAY BE IN FOR SOME SEASONAL WEAKNESS IN THE MONTHS AHEAD SEPTEMBER AND OCTOBER FOR WHATEVER REASON HAVE HISTORICALLY CONSTITUTED THE WEAKEST TWOMONTH SPAN OF THE YEAR AS THE SUMMER OF 1993 DRAWS TO A CLOSE THE MARKET'S RELATIVELY HIGH VALUATION IS REASON ENOUGH TO BE CAUTIOUS THE BANK CREDIT ANALYST A MONTREALBASED ADVISORY LETTER SEES ANOTHER REASON TO BE CAUTIOUS THE BULL MARKETS IN EQUITIES AND BONDS HAVE FURTHER TO RUN HOWEVER THE ASSET INFLATION IS ENTERING A MORE SPECULATIVE AND DANGEROUS PHASE IN THE ANALYST'S VIEW THERE ARE TWO TYPES OF SPECULATORS THE AGGRESSIVE SPECULATORS ARE SURE THE MARKET CAN ONLY GO UP AND THEY'RE DETERMINED TO GET ON BOARD BEFORE IT GOES ANY HIGHER THEY USUALLY HAVE A PRETTY GOOD IDEA OF THE RISKS THEY ARE RUNNING THE SECOND GROUP OF SPECULATORS DRIVEN BY FEAR ARE AFRAID THEY MAY BE TRAPPED IN LOWINTERESTRATE BANK CERTIFICATES WHILE ALL OF THEIR FRIENDS REAP HUGE PROFITS IN THE BOND AND STOCK MARKETS THEY BELIEVE THEY ARE MAKING PERFECTLY RATIONAL DECISIONS BY SWITCHING INTO ASSETS THAT OFFER GREATER RATES OF RETURN BUT THE BANK CREDIT ANALYST COMMENTS THESE DECISIONS ARE USUALLY BASED ON PAST MARKET PATTERNS NOT PROBABLE FUTURE PATTERNS BOTH KINDS OF SPECULATION ARE VISIBLE IN THE MARKETS NOW BUT FEAR SEEMS TO BE THE DOMINANT FACTOR CLOSE TO HALF OF THE MAJOR ANALYSTS ARE NERVOUS ABOUT THE FUTURE COURSE OF THE MARKETS SUCH NERVOUSNESS SURPRISES THE MORE BULLISH ANALYSTS RALPH ACOMPORA OF PRUDENTIAL SECURITIES PUTS IT THIS WAY WHEN THE STANDARD & POOR'S 500 AVERAGE WENT INTO NEW HIGH GROUND ALONG WITH MANY OTHER IMPRESSIVE MARKET BAROMETERS WE WERE SURPRISED THAT SO FEW MARKET OBSERVERS SHIFTED FROM THEIR NEUTRAL OR NEGATIVE STANCES TO POSITIVE BUT IN A SENSE HE BELIEVES THE SKEPTICISM IS GOOD WE TAKE HEART IN THE FACT THAT NEW HIGHS IN THE MARKETPLACE ARE NOT NECESSARILY CAUSING A BOOM IN BULLISH MARKET PSYCHOLOGY A POSITIVE OMEN WELL MAYBE SO BUT I TEND TO AGREE WITH LAWRENCE KUDLOW CHIEF ECONOMIST OF BEAR STEARNS & CO WHO THINKS IT'S TIME FOR THE FED TO RESTORE ITS CREDIBILITY THE CENTRAL BANK TALKS A LOT ABOUT CURBING INFLATION BUT IF IT DOES NOT REIN IN BANK RESERVES INFLATION WILL HEAD HIGHER THE FED WHICH DID A LOT TO START THE STOCK AND BOND BOOMS CAN BY STICKING TO ITS PRESENT COURSE ALSO END THEM 9309030056 930903 AT SEAGRAM RETAIL STORE IN UKRAINE WORKERS GET LESSON IN MARKET ECONOMY BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL KIEV UKRAINE WHILE THE POSITIVE EFFECTS OF FOREIGN INVESTMENT AND WESTERNSTYLE MANAGEMENT ARE INCREASINGLY FELT IN CENTRAL EUROPE UKRAINE STILL LAGS FAR BEHIND IN BOTH CATEGORIES BUT THOSE WESTERN COMPANIES THAT HAVE SET UP SHOP HERE ARE HAVING AN ENORMOUS IMPACT ON THE PEOPLE WHO HAVE BEEN LUCKY ENOUGH TO LAND A JOB WITH THEM A CASE IN POINT IS SEAGRAM CO WHEN IT BEGAN OPERATING A RETAIL OUTLET HERE THIS SUMMER IT DID MORE THAN OPEN A FANCY STORE AND CREATE A NEW VODKA FOR THE WORLD MARKET BY OFFERING HIGHER WAGES BETTER WORKING CONDITIONS AND EXTENSIVE TRAINING THE CANADABASED COMPANY ALSO BEGAN TO CHANGE THE WAY ITS EMPLOYEES HERE THINK ABOUT A MARKET ECONOMY IN THE OLD DAYS WORKERS WERE SEEN AS FLUNKIES SAYS VOLODYMYR KISH GENERAL MANAGER FOR SEAGRAM UKRAINE LTD WHICH IS THE COMPANY'S UKRAINIAN MARKETING SALES AND DISTRIBUTION OPERATION HE SAYS SEAGRAM IS FINDING THAT ITS EMPLOYEES HERE 22 OF WHOM WORK AT THE RETAIL OUTLET ARE IMPRESSED WITH THE AMOUNT OF INVESTMENT WE'VE MADE IN THEIR TRAINING THEY'RE IMPRESSED BY THE FACILITIES THEY WORK IN INTEGRAL TO THE COMPANY'S PHILOSOPHY HE SAYS IS THE BELIEF THAT IF YOU TREAT YOUR PEOPLE WELL AND PAY A GOOD COMPETITIVE WAGE THEY'LL WORK HARDER AND WON'T WANT TO LEAVE WE TRY TO CREATE AN ATMOSPHERE WHERE EMPLOYEES WILL BE HAPPY THAT'S AN UNUSUAL STATEMENT TO BE MADE BY A MANAGER IN UKRAINE AND ONE MOST WORKERS IN THE FORMER SOVIET REPUBLIC AREN'T LIKELY TO HEAR ANYTIME SOON THE NEW STORE IN DOWNTOWN KIEV GETS MOST OF ITS STOCK FROM THE WEST BUT THE COMPANY'S NEW PREMIUM VODKA KIEVSKA RUS WHICH IT PLANS TO MARKET WORLDWIDE IS DISTILLED IN THE WESTERN UKRAINIAN CITY OF LVOV UNLIKE THE RETAIL OPERATION THE DISTILLERY HASN'T BEEN PRIVATIZED AND THE GOVERNMENT HAS NO PLANS OF DOING SO SOON HOWEVER THE OPERATION IS MORE WESTERN THAN MOST IN UKRAINE BECAUSE THE DISTILLERY HAS BEEN MAKING A POPULAR PRODUCT THAT HAS BEEN MARKETED IN THE WEST FOR YEARS AND HAS HAD TO ADJUST TO WESTERN IDEAS EMPLOYEES AT THE NEW STORE SAY THAT SINCE THEY BEGAN WORKING THERE THEY FEEL MORE HOPEFUL FOR THE FUTURE DESPITE THE ECONOMIC DIFFICULTIES FACING THEIR NATION I'M THE HAPPIEST PERSON IN THE WORLD NOW SAYS LYDIA VOLOSHYNA MANAGER OF THE FLAGSHIP RETAIL STORE HER NEW POSITION IS QUITE A CHANGE FROM HER OLD JOB BEFORE THE BREAKUP OF THE SOVIET UNION MRS VOLOSHYNA WAS ONE OF A SMALL GROUP OF PEOPLE ELECTED TO THE REPUBLIC'S PARLIAMENT WITHOUT PARTY AFFILIATION DURING THAT PERIOD SHE DESCRIBED HERSELF AS BEING MORE SOCIALIST THAN COMMUNIST NOW AT AGE 54 SHE SAYS SHE'S HAD A CHANGE OF HEART FROM HER SOCIALIST VIEWS AND HAS BECOME A TRUE BELIEVER IN A MARKET ECONOMY AND PRIVATE ENTERPRISE IN APRIL I WAS SENT TO EUROPE TO VISIT SEAGRAM'S OPERATIONS THERE SHE SAYS SEEING FIRSTHAND HOW THE WEST OPERATES WAS THE KEY TO HER CHANGE OF PHILOSOPHY SHE ADDS WHEN WE MET WITH PEOPLE THEY TOLD ME EVERYTHING THEY KNEW WITH SUCH CARE SO THAT I COULD UNDERSTAND THEM AND BRING BACK THE INFORMATION WITH ME WHAT LEFT A LASTING IMPRESSION MRS VOLOSHYNA SAYS WAS THE WORK ETHIC SHE SAW IN THE WEST THE WAY A LOT OF THE PEOPLE SEEMED TO BE MORE SATISFIED WITH WHAT THEY WERE DOING WHILE CUSTOMER SERVICE WAS NEVER HIGH ON THE LIST OF PRIORITIES UNDER COMMUNIST RULE SEAGRAM EMPLOYEES AS WELL AS OTHER WORKERS AT WESTERN COMPANIES HERE HAVE NOTICED A DRAMATIC CHANGE IN THIS AREA FROM THEIR EARLIER JOBS NOW SATISFYING THE CUSTOMER IS TOP PRIORITY IN ADDITION SEAGRAM LIKE MANY WESTERN FIRMS IN UKRAINE IS PHASING IN A WESTERNSTYLE MANAGEMENT PHILOSOPHY ALTHOUGH THE WORKERS IN ITS RETAIL SHOP STILL PUT IN A CUSTOMARY 12HOUR SHIFT THEIR WAGES ARE VASTLY IMPROVED AND THEY ARE PAID OVERTIME FOR WORKING ON HOLIDAYS WHILE SEAGRAM WON'T DISCUSS THE DETAILS OF THEIR WAGE POLICY MANY WESTERN FIRMS IN ORDER TO BEAT THE PROBLEM OF HYPERINFLATION LINK SALARIES TO DOLLAR EXCHANGE RATES SOME FIRMS EVEN PAY THEIR EMPLOYEES IN HARD CURRENCY IN ADDITION MR KISH SAYS MOST OF HIS WORKERS ARE SURPRISED AND PLEASED BY THE EMPHASIS SEAGRAM'S HAS PLACED ON THEIR TRAINING THE SEVENMONTH TRAINING PERIOD INCLUDES SIX MONTHS OF LEARNING ENGLISH AS WELL AS INSTRUCTIONS ON THE HISTORY OF THE SEAGRAM PRODUCTS THAT ARE SOLD IN THE STORE AND HOW THEY ARE MADE THERE ARE ALSO A SERIES OF TASTE TESTS AND CLASSES ON HOW TO GREET CUSTOMERS WHAT SEEMS TO IMPRESS SEAGRAM'S EMPLOYEES MOST HOWEVER IS THE STORE ITSELF WITH ITS GRAY MARBLE EXTERIOR AND DISPLAY CABINETS AND SHELVES MADE OF CANADIAN MAPLE THE STORE IS ARGUABLY ONE OF THE NICEST IN KIEV SOMETIMES AFTER SPENDING THE ENTIRE DAY WORKING IN SUCH A WONDERFUL PLACE I HAVE DIFFICULTY GOING INTO OUR STORES WHICH ARE OFTEN DIRTY AND IN NEED OF REPAIR SAYS 30YEAROLD LUDMILLA ZAIDULINA SHE WORKED AT THE STORE WHEN IT WAS STILL A CANDY SHOP CALLED LISOVA PISNA OR SONG OF THE FOREST A DEPRESSING PLACE WHERE THE SALESWOMEN WORE WHITE HOSPITALLIKE APRONS AND BARKED BACK AT FRUSTRATED CUSTOMERS FED UP WITH WAITING IN LINE TO BUY THE ONLY DECENT CHOCOLATE IN TOWN NOW DRESSED IN A NEATLY PRESSED WHITE BLOUSE AND BLUE SKIRT AND ADORNED WITH A SEAGRAM'S SCARF MRS ZAIDULINA SAYS HER LIFE HAS CHANGED SHE SAYS SHE'S MOTIVATED TO WORK HARDER BECAUSE SHE'S PAID MORE MONEY THAN BEFORE JUST HOW MUCH MORE SHE WON'T SAY EVEN THOUGH THE STORE HAS BEEN OPEN ONLY A MONTH THE UPBEAT ATTITUDES OF THE WORKERS REFLECT NOT JUST THE INITIAL JOY OF FINDING A JOB ALL OF THESE WORKERS HAVE SEEN AN IMMEDIATE IMPROVEMENT IN THE QUALITY OF THEIR LIVES AND SOME SEEM TO SEE THEMSELVES AS THE FOUNDATION OF WHAT COULD BECOME A NEW MIDDLE CLASS ALL OF A SUDDEN THEY DON'T HAVE TO WAIT IN LINE TO BUY MEAT AT A STATE STORE THEY CAN GO TO A PRIVATE MARKET AND EVEN THOUGH THEY MIGHT PAY MORE MONEY TAKE HOURS OFF THEIR SHOPPING MRS VOLOSHYNA SAYS THAT SHE AND HER HUSBAND CAN NOW AFFORD TO GO OUT FOR DINNER SOMETHING THAT IN THESE HYPERINFLATIONARY TIMES IS VIRTUALLY IMPOSSIBLE FOR THE MAJORITY OF PEOPLE MRS ZAIDULINA ADDS I HAVE THE TIME NOW TO TALK TO THE CUSTOMER IT'S MUCH BETTER THAN BEFORE 9309030055 930903 JURY SAYS GOODYEAR MUST PAY 11 MILLION IN 1986 ACCIDENT CASE CHICAGO A COOK COUNTY JURY AWARDED AN 11 MILLION VERDICT AGAINST GOODYEAR TIRE & RUBBER CO FOR ALLEGEDLY MANUFACTURING A DEFECTIVE TIRE THAT BLEW OUT IN A 1986 ACCIDENT AND CAUSED SERIOUS INJURIES TO THE DRIVER THE JURY AWARDED 9 MILLION TO THE PLAINTIFF GARY CARTWRIGHT OF PRINCETON ILL WHO WAS THE DRIVER AND ONLY OCCUPANT OF THE CAR AND 2 MILLION TO HIS WIFE LAURA FOR LOSS OF LOVE AND SERVICES OF HER HUSBAND GOODYEAR SAID IT WAS CONSIDERING AN APPEAL WE CONTINUE TO BELIEVE THE TIRE IN QUESTION WAS NOT THE CAUSE OF THE ACCIDENT THE COMPANY SAID IN A STATEMENT THE AKRON OHIO COMPANY MAINTAINED THAT DRIVER ERROR WAS RESPONSIBLE THE CARTWRIGHTS' LAWYER JEFFREY M GOLDBERG SAID THE CASE INVOLVED A DEFECT IN ONE PARTICULAR TIRE AND WASN'T INDICATIVE OF A PROBLEM IN AN ENTIRE LINE THE PLAINTIFFS CONTENDED THAT THE TIRE A GOODYEAR SUPER HIMILER RADIAL CONTAINED A CLEARLY VISIBLE INTERNAL SEPARATION OF LAYERS CAUSED BY ABRASION AND POLISHING INSIDE THE TIRE THE TWOYEAR OLD TIRE HAD AN ESTIMATED 20000 TO 40000 MILES ON IT MR GOLDBERG SAID IT SHOULD WEAR FROM THE OUTSIDE IN MR GOLDBERG SAID NOT INTERNALLY SEPARATE IN THE 1986 ACCIDENT MR CARTWRIGHT A TRUCK DRIVER WHO WAS THEN 33 YEARS OLD WAS DRIVING THE TRUCK WHILE ON HIS JOB WHEN THE FRONT RIGHT TIRE ALLEGEDLY BLEW OUT AND THE TRUCK SLAMMED INTO A CONCRETE PILLAR SUPPORTING AN OVERPASS MR CARTWRIGHT WHO SUSTAINED MULTIPLE FRACTURES AND NERVE INJURIES HASN'T WORKED SINCE THE ACCIDENT 9309030054 930903 BUSINESS BRIEF WR GRACE & CO US APPEALS COURT RULING ON CLAIMS FACES CHALLENGE WR GRACE & CO NEW YORK SAID IT WOULD SEEK JUDICIAL REVIEW OF A FEDERAL APPEALS COURT RULING THAT COULD LIMIT ITS INSURANCE COVERAGE IN ASBESTOS LIABILITY CASES THE SECOND US CIRCUIT COURT OF APPEALS REVERSED A LOWERCOURT RULING THAT CONCERNED THE TIMING OF DAMAGES IN NUMEROUS PERSONALINJURY AND PROPERTYDAMAGE CLAIMS THE COMPANY SAID THE OPINION IF UPHELD WOULD HAVE THE EFFECT OF REDUCING GRACE'S AVAILABLE PROPERTY DAMAGE INSURANCE COVERAGE BELOW THE MORE THAN 15 BILLION GRACE THOUGHT WAS AVAILABLE THE COMPANY SAID THAT HAD BEEN CONSIDERED A MORETHANADEQUATE CUSHION IN ITS 1992 ANNUAL REPORT GRACE ESTIMATED THE COST OF DISPOSING OF PENDING ASBESTOS CASES AT BETWEEN 480 MILLION AND 627 MILLION IT ALREADY HAS PAID OUT 3583 MILLION IN SETTLEMENTS BUT EXPECTS TO BE REIMBURSED BY ITS INSURERS NOTWITHSTANDING THE SECOND CIRCUIT DECISION WE ARE CONFIDENT THAT WE CAN CONTINUE TO VIGOROUSLY DEFEND OUR ASBESTOS LITIGATION MAINTAIN OUR PLANNED CASH FLOW AND UPGRADE OUR OPERATIONS GRACE SAID 9309030053 930903 WESTERN INVESTORS SEEK RUSSIAN BONDS BETTING THAT REFORM EFFORT PAYS OFF BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON RUSSIAN BONDS THE PHRASE CONJURES UP THOUGHTS OF ORNATELY INSCRIBED PREREVOLUTIONARY DEBT SECURITIES ISSUED DURING THE DAYS OF CZAR NICHOLAS II BUT NOW THREEQUARTERS OF A CENTURY AFTER THE BOLSHEVIK REVOLUTION TOPPLED THE IMPERIAL RULERS AND REPUDIATED THEIR DEBTS RUSSIAN BONDS AGAIN ARE BEING SOUGHT OUT BY INVESTORS IN THE WEST THIS TIME THEY TAKE THE FORM OF PAPER VALUED AT ABOUT 17 BILLION ISSUED IN THE LATE 1980S BY THE SOVIET UNION THROUGH ITS BANK FOR FOREIGN ECONOMIC AFFAIRS ALSO KNOWN AS VNESHECONOMBANK VNESHECONOMBANK BONDS DENOMINATED IN GERMAN MARKS FOR EXAMPLE HAVE RACKED UP TREMENDOUS GAINS DOUBLING IN VALUE SINCE THE BEGINNING OF THE YEAR AS INVESTORS BECOME MORE OPTIMISTIC ABOUT THE PROSPECTS FOR RUSSIA'S DRASTICALLY NEEDED TRANSFORMATION BUT EXTREME CAUTION IS CALLED FOR GIVEN THE POTENTIAL POLITICAL AND ECONOMIC PROBLEMS NEILS NOOY A SOVEREIGN DEBT TRADER AT ING BANK IN LONDON THINKS THE RUSSIAN BONDS HAVE REACHED UNJUSTIFIED LEVELS THE COUNTRY IS STILL IN A HUGE MESS MR NOOY SAYS THERE'S STILL MUCH THAT COULD GO WRONG AND AT THE SAME TIME THERE'S NOT MUCH UPSIDE POTENTIAL STILL YIELDS ON THE RUSSIAN ISSUES IN DEUTSCHE MARKS ARE AROUND 17 ABOUT TRIPLE THE FIGURE FOR SIMILAR PAPER ISSUED BY THE GERMAN GOVERNMENT IN THESE DAYS OF STEADILY FALLING INTEREST RATES THE VNESHECONOMBANK PAPER REPRESENTS SOME OF THE ONLY DOUBLEDIGIT BONDS YIELDS IN EUROPE THE BONDS ARE ALSO JUST ABOUT THE ONLY SECURITIES LISTED IN THE WEST THAT ALLOW INVESTORS TO BENEFIT FROM ANY IMPROVEMENT IN THE FORMER SOVIET UNION'S ECONOMIC PROSPECTS IF YOU WANT TO BE INVOLVED IN THE RUSSIA STORY THIS IS THE WAY TO PLAY IT SAYS BRIAN LAZELL HEAD OF DEBT TRADING AT JP MORGAN IN LONDON RETAIL CUSTOMERS CAN BUY THE BONDS IN AMOUNTS EQUIVALENT TO AS LITTLE AS 5000 THROUGH THE LARGE COMMERCIAL BANKS IN EUROPE'S MAIN FINANCIAL CENTERS LARGE INSTITUTIONAL INVESTORS ALSO ARE TRADING BLOCKS OF DEBT OWED BY RUSSIA TO WESTERN COMMERCIAL BANKS IN 1989 AND 1990 THE SOVIET UNION SUSPENDED INTEREST PAYMENTS ON THAT DEBT BELIEVED TO TOTAL 24 BILLION THE RUSSIAN GOVERNMENT ALSO DEFAULTED ON ABOUT 55 BILLION IN DIRECT LOANS FROM WESTERN GOVERNMENTS WHILE THE DEBT IS NONPERFORMING INSTITUTIONS ARE ENTICED BY THE DEEP DISCOUNTS AROUND 35 CENTS ON THE DOLLAR AS THEY BET THAT RUSSIA EVENTUALLY WILL START TO SERVICE AT LEAST PART OF THE DEBT AGAIN UNDER THE COMMONWEALTH OF INDEPENDENT STATES' CURRENT AGREEMENTS WHICH ARE SUBJECT TO CHANGE RUSSIA IS RESPONSIBLE FOR ALL THE FOREIGN DEBT INCURRED BY THE SOVIET UNION BEFORE IT BROKE UP IN DECEMBER 1991 TAKING IN RETURN ALL OF THE FORMER SOVIET UNION'S ASSETS ABROAD WHILE THE RUSSIANS STOPPED SERVICING THEIR COMMERCIAL BANK AND INTRAGOVERNMENTAL DEBT THEY HAVE BEEN METICULOUS ABOUT MAKING INTEREST PAYMENTS ON THE BONDS SOMETHING ANALYSTS EXPECT THEM TO CONTINUE INVESTORS SHOULD CONSIDER HOWEVER THAT THE ISSUES AREN'T EVALUATED BY ANY OF THE WORLD'S MAJOR DEBTRATING AGENCIES AND PAYING THE INTEREST DUE ON A BOND IS ONE THING HOW ABOUT ACTUALLY REPAYING THE PRINCIPAL IGOR SITNIN A SENIOR DIRECTOR AT CONTINENTAL BANK IN LONDON WHO IN 1988 HELPED ARRANGE TO FIRST SOVIET BOND ISSUE SINCE THE REVOLUTION AS DEPUTY MANAGING DIRECTOR OF THE SOVIET BANK'S ZURICH OFFICE SAYS IN ALL PROBABILITY THEY'LL DO IT THE RUSSIAN GOVERNMENT NOW UNDERSTANDS HOW IMPORTANT IT IS TO RESPECT BONDHOLDER RIGHTS MR SITNIN SAYS IT TOOK THE COUNTRY NEARLY 70 YEARS TO REGAIN INVESTOR CONFIDENCE ONE CONDITION OF THE SOVIETS GAINING ACCESS TO WESTERN BOND MARKETS IN THE LATE 1980S WAS REACHING A SETTLEMENT OVER THE CZARIST BONDS WHICH LENIN'S GOVERNMENT REFUSED TO HONOR DETAILS OF THE REPAYMENT TRANSACTIONS HAVE BEEN SECRET ALTHOUGH IT IS WIDELY THOUGHT THAT THEY INVOLVED A PARTIAL REIMBURSEMENT OF THE PRINCIPAL AND INTEREST ARREARS PERHAPS AS LOW AS 10 OF THE FULL AMOUNT IN SOME CASES ANYONE CONSIDERING BUYING THE VNESHECONOMBANK BONDS SHOULD MAKE A COOLHEADED JUDGMENT ABOUT POLITICAL RISK CERTAINLY THE RISKS OF MAJOR POLITICAL UPHEAVAL ARE EVERPRESENT THAT'S WHY THE BONDS ARE OCCASIONALLY DUBBED EAST BLOC JUNK ON WEDNESDAY FOR EXAMPLE PRESIDENT BORIS YELTSIN SUSPENDED THE VICE PRESIDENT AND A FIRST DEPUTY PRIME MINISTER FROM THEIR DUTIES SAYING THEIR ALLEGATIONS OF CORRUPTION WERE DAMAGING THE GOVERNMENT THOSE THINKING ABOUT BUYING RUSSIAN BONDS SHOULD LARGELY BE ATTRACTED BY THE CURRENT YIELD NOT THE POTENTIAL FOR THE BOND'S PRICE TO RISE SAYS ADAM ELSTEIN AN ASSISTANT DIRECTOR AT MORGAN GRENFELL DEBT ARBITRAGE AND TRADING THE BONDS HAVE PERFORMED EXTREMELY WELL ALREADY HE SAYS FROM HERE ON A LOT MORE DEPENDS ON WHAT HAPPENS POLITICALLY IN RUSSIA FOR THOSE STILL LURED BY THE YIELDS THERE ARE OTHER PERHAPS MORE MUNDANE CONSIDERATIONS TO MAKE AS THE RUSSIAN BONDS DON'T EXIST IN A FINANCIAL MARKET VACUUM AFFECTED ONLY BY THE LATEST RUMBLINGS FROM MOSCOW LIKE ANY BONDS THE GENERAL INTERESTRATE ENVIRONMENT OF THE CURRENCY IN WHICH THEY ARE DENOMINATED IS A KEY VARIABLE SECOND THE INVESTOR HAS TO DECIDE WHICH CURRENCIES TO BE EXPOSED TO IN THE CASE OF DOLLARORIENTED INVESTORS IT'S IMPORTANT TO CONSIDER MANY FOREIGN EXCHANGE EXPERTS PREDICT THAT MOST EUROPEAN CURRENCIES ARE LIKELY TO FALL AGAINST THE US CURRENCY OVER THE NEXT 12 MONTHS IN ADDITION BOND MARKETS ARE WIDELY THOUGHT TO BE NEARING THE END OF A TWOYEAR RALLY PRICE APPRECIATION FOR ANY ISSUE FROM THE FORMER SOVIET UNION OR ELSEWHERE IS THOUGHT TO BE LIMITED FINALLY WOULDBE INVESTORS SHOULD TAKE INTO ACCOUNT AN ISSUE'S LIQUIDITY OR THE EASE WITH WHICH THE BONDS CAN BE BOUGHT OR SOLD ALL THE BONDS ISSUED BY VNESHECONOMBANK ARE TRADED ON LOCAL EXCHANGES IN EUROPE THOSE DENOMINATED IN DEUTSCHE MARKS ARE CONSIDERED THE MOST LIQUID 9309030052 930903 WORK & FAMILY BY SUE SHELLENBARGER THE NATION'S LARGEST CORPORATE CONSORTIUM IS FINISHING ITS FIRST YEAR WITH 285 NEW CHILDCARE AND ELDERCARE PROJECTS UNDER WAY BUT THE OUTLOOK FOR FURTHER EXPANSION IS UNCLEAR THE AMERICAN BUSINESS COLLABORATION POOLED FUNDS LAST SEPTEMBER TO IMPROVE DEPENDENTCARE SERVICES FOR EMPLOYEES THOUGH MANY OF THE 11 FOUNDING COMPANIES WERE WRACKED BY DOWNSIZING OR A TOPMANAGEMENT CHANGE IN THE PAST YEAR 93 OF THE GROUP'S PLANNED PROJECTS ARE OPERATING OR READY TO BEGIN ACCORDING TO A REPORT BY THE COLLABORATION ALL 308 PLANNED PROJECTS WILL BE RUNNING WITHIN SIX MONTHS IT SAYS THE PARTNERSHIP HAS GROWN TO 146 EMPLOYERS FROM THE ORIGINAL 137 WITH PFIZER PRUDENTIAL INSURANCE AND TENNECO AMONG OTHERS JOINING FIFTEEN MEMBER COMPANIES GAVE A TOTAL OF 900000 IN NEW MONEY DURING THE YEAR BRINGING TOTAL FUNDING TO 263 MILLION FROM 254 MILLION LAST SEPTEMBER THE GROUP HAS FINANCED HUNDREDS OF NEW CHILDCARE SLOTS AND SOME UNUSUAL NEW SERVICES INCLUDING INFANTCARE TRAINING AS WELL AS INHOME CARE AND A CASEMANAGEMENT PROGRAM FOR THE ELDERLY THE COLLABORATION ALSO HAS SPARKED IMITATORS WITH DOZENS OF OTHER CONSORTIUMS SPRINGING UP NATIONWIDE MEMBERS SAY IT IS TOO SOON TO TELL WHETHER THE COLLABORATION WILL EXPAND THE FOUNDING COMPANIES SEARS ROEBUCK'S ALLSTATE INSURANCE UNIT AMERICAN EXPRESS AMOCO AMERICAN TELEPHONE & TELEGRAPH EASTMAN KODAK EXXON INTERNATIONAL BUSINESS MACHINES JOHNSON & JOHNSON MOTOROLA TRAVELERS AND XEROX PLAN TO MEET EARLY NEXT MONTH PARTLY TO BRAINSTORM ON WHAT WE WANT TO DO NEXT SAYS A MANAGER AT ONE OF THE COMPANIES IF YOU GET A PINK SLIP SHOULD YOU RUN HOME AND TELL THE KIDS MANY LAYOFF VICTIMS TRY TO SHIELD THEIR CHILDREN IN HOPES THAT THE BAD NEWS WON'T AFFECT THEM BUT A GROWING BODY OF RESEARCH SUGGESTS THAT A PARENT'S JOB LOSS HAS A BIG IMPACT ON CHILDREN ANYWAY AND CAN HIT THEM AS HARD AS A DIVORCE CHILDREN ARE AWARE OF JOBRELATED CHANGES IN PARENTS' MOOD ROUTINE OR SPENDING SAYS RICHARD DARVEAU OF JANDL ASSOCIATES A LYNNFIELD MASS OUTPLACEMENT CONCERN THAT IS RESEARCHING THE SUBJECT WITH BOSTON UNIVERSITY'S CENTER ON WORK AND FAMILY IF PARENTS DON'T EXPLAIN WHAT HAPPENED AND WHY THE CHILDREN MAY BLAME THEMSELVES FOR CHANGES IN THE FAMILY HE SAYS CHILDREN MAY RECALL A PARENT'S OFFHAND REMARK SUCH AS I CAN'T WORK BECAUSE YOU'RE MAKING SO MUCH NOISE AND CONCLUDE THAT THE INCIDENT CAUSED THE FIRING SAYS RUTHAN ROSENBERG DIRECTOR OF PROGRAM DEVELOPMENT FOR MURRAY AXMITH & ASSOCIATES A TORONTO OUTPLACEMENT FIRM AND COAUTHOR OF A RECENT BOOK ON FAMILIES OF LAYOFF VICTIMS OTHERS MISBEHAVE IN HOPES THAT PARENTS WILL REFOCUS THEIR ATTENTION ON THEM AND ACT NORMAL AGAIN ONE LAIDOFF MANAGER TOLD HIS FOURYEAROLD DAUGHTER LITTLE ABOUT HIS JOB LOSS EXCEPT THAT HE WOULD BE HOME MORE MR DARVEAU SAYS WHEN HE FOUND ANOTHER JOB SHE ASKED DADDY DOES THIS MEAN YOU'LL BE LEAVING HOME SHOCKED HE QUESTIONED HER AND FOUND THAT BECAUSE A LAIDOFF UNCLE'S NEW JOB HAD REQUIRED A WEEKLY COMMUTE TO A DISTANT CITY SHE ASSUMED HER FATHER WOULD HAVE TO DO THE SAME MS ROSENBERG RECOMMENDS TALKING OPENLY WITH CHILDREN IN TERMS THEY CAN UNDERSTAND NOT JUST AFTER A LAYOFF BUT THROUGHOUT A JOB SEARCH AFTER VINNY DOLAN WAS LAID OFF HE AND HIS WIFE SAT DOWN WITH THEIR SONS AGES 14 12 AND 8 TO PREPARE THEM FOR THE WORST INCLUDING A POSSIBLE MOVE THOUGH THE TALK CAUSED SOME INITIAL UPHEAVAL AND MADE MR DOLAN UNEASY IT HELPED US STICK TOGETHER AS A FAMILY HE SAYS NOW MR DOLAN WHO HAS FOUND A NEW JOB IS A FIRM ADVOCATE OF OPENNESS IT TAUGHT THE BOYS A LESSON IN LIFE THAT THINGS DON'T ALWAYS GO YOUR WAY AND THAT THERE IS STRENGTH IN THE FAMILY UNIT SOME OUTPLACEMENT FIRMS INCLUDING JANDL ASSOCIATES HAVE STARTED OFFERING COUNSELING TO CHILDREN AS PART OF OUTPLACEMENT BURIED IN THE FEDERAL BUDGET PACKAGE IS A LITTLENOTICED NUGGET FOR ADOPTIVE PARENTS IN THE PAST EMPLOYER HEALTH PLANS OFTEN DIDN'T COVER ADOPTED CHILDREN UNTIL THE ADOPTION WAS FINAL SOMETIMES MONTHS AFTER PARENTS TOOK CUSTODY ADOPTED CHILDREN'S PREEXISTING HEALTH CONDITIONS OFTEN WERE EXCLUDED FROM COVERAGE FORCING PARENTS OR MEDICAID TO PAY AND MAKING IT HARDER TO PLACE SPECIALNEEDS CHILDREN LIKE BABIES AFFECTED BY DRUGS OR OTHER MEDICAL PROBLEMS BUT IN A MOVE TO TRIM MEDICAID SPENDING THE BUDGET PLAN ENACTED LAST MONTH AMENDS FEDERAL BENEFITS LAW TO REQUIRE EMPLOYERS TO TREAT ADOPTED CHILDREN THE SAME AS BIOLOGICAL OFFSPRING UNDER THE NEW LAW AN ADOPTED CHILD MUST BE INSURED REGARDLESS OF PREEXISTING AILMENTS AS SOON AS ADOPTIVE PARENTS BEGIN SUPPORTING THE CHILD THE MEASURE IS CLEARLY A BREAK FOR ADOPTIVE PARENTS SAYS HENRY SAVETH A PRINCIPAL WITH FOSTER HIGGINS BENEFITS CONSULTANTS BUT WHILE MANY EMPLOYERS ARE ANXIOUS TO HELP OUT MOST ALREADY ARE STRAINING UNDER THE COST BURDEN OF THEIR MEDICAL PLAN HE SAYS WORKING PARENTS WILL RALLY AT TIMES SQUARE IN NEW YORK THE CAPITOL STEPS IN WASHINGTON AND THE STATE OF ILLINOIS BUILDING IN CHICAGO ON SEPT 9 THE NATIONAL DAY OF THE WORKING PARENT FOOD FOR THOUGHT BOXES FILLED WITH CHILDCARE AND ELDERCARE INFORMATION WILL BE GIVEN TO BUSINESSPEOPLE AND POLITICIANS SAYS THE NATIONAL COUNCIL OF JEWISH WOMEN COSPONSOR WITH MARRIOTT AMONG OTHERS MORE THAN 40 MAJOR PUBLICTV STATIONS ARE EXPECTED TO OFFER A WORKFAMILY DOCUMENTARY SERIES FAMILIES IN THE 90S BEGINNING NEXT WEEK THE SERIES PRODUCED BY PARALLEL LINES OF NOVATO CALIF AND KRCBTV WILL SHOW HOW AN ETHNIC CROSS SECTION OF SINGLEPARENT FAMILIES TWOPAYCHECK COUPLES PARENTS OF DISABLED CHILDREN AND STEPFAMILIES JUGGLE JOB AND HOME WORRIES 9309030051 930903 FOREIGN EXCHANGE INVESTORS FLOCK TO THE MARK PUSHING IT HIGHER AGAINST BOTH THE DOLLAR AND YEN BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK LURED BY HIGH GERMAN INTEREST RATES INVESTORS FLOCKED TO THE MARK THURSDAY PUSHING THE GERMAN CURRENCY HIGHER AGAINST THE DOLLAR AND THE YEN THE DOLLAR MANAGED TO GAIN AGAINST THE YEN ALTHOUGH TRADERS SAID IT COULD BE EXPECTED TO FALL ACROSS THE BOARD IF FRIDAY'S US NONFARM PAYROLL REPORT DOESN'T PROVIDE SOME UPBEAT NEWS ABOUT THE US ECONOMY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16440 MARKS DOWN FROM 16593 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10585 YEN UP FROM 10530 YEN STERLING WAS TRADING AT 15025 DOWN A BIT FROM 15045 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10573 YEN AND AT 16458 MARKS TRADERS SAID THE MARK GAINED STRENGTH AS PLAYERS CAME TO BELIEVE THAT GERMANY'S 675 DISCOUNT RATE IS UNLIKELY TO DECLINE MUCH IN THE SHORT TERM CONTRARY TO WHAT THEY HAD BELIEVED FOR MOST OF THE SUMMER CITED THERE'S BEEN A TURN OF SENTIMENT SAID HILLEL WAXMAN VICE PRESIDENT AND HEAD OF FOREIGNEXCHANGE DEALERS AT BANK LEUMI TRUST IN NEW YORK THE GERMANS ARE OBVIOUSLY GOING TO TAKE WHATEVER TIME THEY FEEL IS NECESSARY TO LOWER INTEREST RATES IT MAY BE VERY SLOW MR WAXMAN SAID HELMUT SCHLESINGER PRESIDENT OF THE BUNDESBANK APPEARED TO BOLSTER THAT VIEW THURSDAY NOTING IN A SPEECH THAT THE GERMAN ECONOMY HAD BENEFITED GREATLY FROM TRUST IN A STRONG MARK A TOO RAPID EASING OF OUR INTEREST RATE POLICIES COULD WEAKEN THAT TRUST HE ARGUED MEANWHILE PLAYERS ALSO NOTED THAT GERMAN INDUSTRIALPRODUCTION DATA ISSUED WEDNESDAY GAVE A SURPRISINGLY ROSY PICTURE OF THE GERMAN ECONOMY JULY INDUSTRIAL OUTPUT ROSE 05 AND HAD BEEN EXPECTED TO DECLINE THERE'S NOW THE FEELING THAT THE RECESSION IN GERMANY MAY HAVE BOTTOMED MR WAXMAN SAID THE GERMANS NOW HAVE NO PRESSURE TO LOWER THEIR RATES IT CONTRAST TRADERS ARGUED THAT US AND JAPANESE ECONOMIES ARE STILL LOOKING VERY WEAK AND THEIR ALREADY LOW INTEREST RATES MAY HAVE TO DROP EVEN FURTHER TO STIMULATE ECONOMIC GROWTH THE US ECONOMY LOOKS FRIGHTENING SAID CYRUS WHITNEY CHIEF TRADER WITH COMMERZBANK IN NEW YORK HE PARTICULARLY NOTED WEDNESDAY'S NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX WHICH SHOWED THE US MANUFACTURING SECTOR REMAINS SLUGGISH THE ASSOCIATION'S OVERALL INDEX FELL TO 493 IN AUGUST FROM 495 IN JULY ANY READING BELOW 50 INDICATES THE MANUFACTURING ECONOMY IS CONTRACTING MR WHITNEY SAID THAT WHILE FOR MUCH OF THE SUMMER THE MARKET HAD BEEN WAITING FOR SOME TIGHTENING IN US MONETARY POLICY LONGTERM US RATES NOW LOOK LIKE THEY'RE NOT GOING TO GO UP TRADERS ALSO NOTED THAT FRIDAY'S NONFARM PAYROLL REPORT WOULD PROVIDE ANOTHER IMPORTANT TEST OF THE HEALTH OF THE US ECONOMY AND WARNED THAT ANYTHING LESS THAN A BULLISH FIGURE COULD SEND THE DOLLAR REELING IF WE GET LOW NUMBERS SHOWING THE ECONOMY IS NOT GROWING THEN I THINK WE REALLY WILL SEE A SLIDE IN THE DOLLAR SAID BANK LEUMI'S MR WAXMAN A SURVEY OF 11 ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT PREDICTED THAT THE US ECONOMY ADDED 141000 NEW NONFARM JOBS IN AUGUST DOWN FROM 162000 NEW JOBS IN JULY 9309030050 930903 MARKETING BRIEF THORN EMI PLC EMI UNIT TO BUY 50 STAKE IN PENDULUM RECORDS LABEL EMI RECORDS GROUP A UNIT OF THORN EMI PLC IN LONDON SAID IT WILL ACQUIRE A 50 INTEREST IN PENDULUM RECORDS A RAP AND POP MUSIC LABEL BASED IN NEW YORK EMI RECORDS IS ACQUIRING THE STAKE IN PENDULUM FOR CASH AS PART OF A JOINT VENTURE BETWEEN EMI RECORDS AND ROGLI ENTERTAINMENT IN NEW YORK WHICH WILL RETAIN THE REMAINING 50 OF PENDULUM RUBEN RODRIGUEZ A PRINCIPAL OF ROGLI AND PRESIDENT AND CHIEF EXECUTIVE OF PENDULUM WILL OVERSEE THE DAYTODAY OPERATIONS OF THE LABEL TERMS OF THE DEAL WEREN'T DISCLOSED BUT EMI RECORDS DOES HAVE AN OPTION TO BUY ALL OF PENDULUM ARTISTS CURRENTLY ON PENDULUM'S ROSTER INCLUDE DIGABLE PLANETS LORDS OF THE UNDERGROUND LISA LISA AND PAPA CHUK PENDULUM PLANS TO RELEASE AT LEAST SEVEN ALBUMS IN THE NEXT YEAR EMI RECORDS WILL HELP PENDULUM MARKET AND PROMOTE ITS RELEASES EMI RECORDS GROUP FORMED IN 1991 INCLUDES THE EMI CHRYSALIS AND SBK RECORD LABELS WHOSE ARTISTS INCLUDE PAT BENATAR ARRESTED DEVELOPMENT AND JON SECADA 9309030049 930903 TOYOTA INCREASES '94 MODEL PRICES BY 25 TO 127 DETROIT'S WATCHFUL EYE STRONG YEN NECESSITATED RISE IN CUSTOMER'S COST BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN A CLOSELY WATCHED MOVE TOYOTA MOTOR CORP RAISED 1994MODEL CAR PRICES IN THE US BETWEEN 25 ON ITS LEAST EXPENSIVE VEHICLES AND A HEFTY 127 ON ITS PRICIER CARS BY RAISING PRICES ON ITS MOST POPULAR CAMRY MODELS 58 TO 118 TOYOTA APPEARED TO FOLLOW THROUGH ON ITS EARLIER WARNING THAT THE STRONG YEN WOULD FORCE PRICES SHARPLY HIGHER AND IT SEEMED TO HEED RUMBLINGS FROM DETROIT AUTO MAKERS THAT IF PRICES DIDN'T GO UP SUBSTANTIALLY THE BIG THREE COULD WIELD THE DUMPINGSUIT WEAPON BUT TOYOTA SAID ITS AVERAGE VEHICLE PRICE WOULD RISE 62 ON A COMPARABLY EQUIPPED BASIS ADDING TO THE 1993 PRICES THE COST OF EQUIPMENT SUCH AS DUAL AIRBAGS THAT HAS BEEN MADE STANDARD ON 1994 MODELS TOYOTA SAID THE AVERAGE PRICE INCREASE WOULD BE ONLY 39 IT ISN'T CLEAR WHETHER TOYOTA AND OTHER JAPANESE COMPANIES ARE RAISING PRICES ENOUGH TO KEEP DETROIT OFF THEIR BACKS YESTERDAY FORD MOTOR CO WHICH HAS BEEN MOST AGGRESSIVE ON THE ISSUE SAID IT PLANS TO CONTINUE TO MONITOR ALL PRICES IN ALL COUNTRIES A FORD SPOKESMAN SAID OUR ISSUE IS THE US TRADE BALANCE WITH JAPAN AND IT'S GETTING WORSE HE SAID HE COULDN'T COMMENT ON A COMPETITOR'S SPECIFIC PRICING MOVES THAT ONLY MAGNIFIES THE PRICING PICKLE IN WHICH TOYOTA FINDS ITSELF THE COMPANY ALREADY HAS PREDICTED THAT IF THE YEN RETAINS ITS PRESENT STRENGTH ITS BOTTOM LINE COULD PLUNGE INTO RED INK NEXT YEAR FOR THE FIRST TIME MEANWHILE ANALYSTS SAY US CAR MAKERS HAVE BEEN HOLDING THEIR PRICE INCREASES TO ABOUT 5 TO 7 AND HONDA MOTOR CO WHICH IS BUILDING NEARLY ALL ITS ACCORDS IN THE US NOW SAID WEDNESDAY IT WAS HOLDING BASEMODEL ACCORD PRICES IN LINE WITH LAST YEAR AND RAISING OTHER NEW ACCORD PRICES NO MORE THAN 24 WHILE PRICES OF IMPORTED HONDAS ARE GOING UP MORE HONDA SAID ITS OVERALL SALESWEIGHTED AVERAGE INCREASE WILL AMOUNT TO JUST 27 ON 1994 MODELS TOYOTA'S COSTCUTTING PROGRAMS HAVE OFFSET SOME OF THE INCREASE IN THE VALUE OF THE YEN GEORGE BORST GENERAL MANAGER OF TOYOTA'S LEXUS LUXURY DIVISION SAID IN A STATEMENT BUT THERE'S ONLY SO MUCH YOU CAN DO WITHOUT AN APPROPRIATE INCREASE IN CAR PRICES CLEARLY MANY TOYOTA CUSTOMERS ARE IN FOR A DOSE OF STICKER SHOCK THE BASE PRICE OF THE 1994 CAMRY SEDAN WILL BE 16438 UP 74 OR 1130 FROM THE PREVIOUS PRICE THE TOPOFTHELINE CAMRY WILL COST 22528 UP 118 OR 2380 FROM THE 1993 MODEL THOSE PRICES ARE SUBSTANTIALLY HIGHER THAN THOSE HONDA POSTED THIS WEEK FOR ITS NEW ACCORD SEDANS ONE OF THE CAMRY'S CHIEF COMPETITORS THE NEW BASE ACCORD DX WILL COST 14330 THE TOPOFTHELINE ACCORD EX WILL BE 21550 TOYOTA'S 1994 COROLLA DX MEANWHILE STARTS AT 12998 AN INCREASE OF 57 OR 700 FROM THE PREVIOUS MODEL TOYOTA'S BIGGEST INCREASE CAME ON THE 1994 CELICA SPORTY COUPE WHICH WILL COST 16968 UP 127 OR 1910 FROM THE FINAL 1993MODEL PRICE THE SMALLEST INCREASE CAME ON THE LOWPRICE LOWVOLUME TERCEL DX WHICH ROSE 25 OR 260 TO 10388 TOYOTA'S LEXUS LUXURY DIVISION RAISED THE BASE PRICE OF THE 1994 MODEL ES300 BY 63 OR 1800 TO 30600 THE STARTING PRICE OF THE SC300 WITH MANUAL TRANSMISSION WILL JUMP 8 OR 2800 TO 38000 THE 1994 LS400 WILL COST 49900 UP 62 OR 2900 FROM THE PREVIOUS PRICE ANALYSTS SAID THAT GIVEN THE RECENT SURGE OF THE YEN AGAINST THE DOLLAR AND THE ADDITION OF NEW STANDARD EQUIPMENT TOYOTA'S INCREASES WERE RELATIVELY MODEST THEY'RE TRYING TO BE AS COMPETITIVE AS POSSIBLE SAID CHRISTOPHER CEDERGREN AN AUTO ANALYST WITH AUTOPACIFIC GROUP INC THE AUTO MAKER'S US SALES ROSE 16 FOR THE CALENDAR YEAR THROUGH JULY 31 TO 610908 VEHICLES COMPARED WITH THE SAME PERIOD A YEAR EARLIER ITS MARKET SHARE HOWEVER SLIPPED FIVE PERCENTAGE POINTS TO 74 AT THE END OF JULY OVERALL JAPANESE MANUFACTURERS HAVE SEEN THEIR COMBINED SHARE OF THE US VEHICLE MARKET DROP TO 223 FOR THE FIRST SEVEN MONTHS OF 1993 FROM 239 DURING THE SAME PERIOD A YEAR EARLIER 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 9309030048 930903 PILKINGTON WILL SELL UNIT FOR 315 MILLION TO GROUP OF INVESTORS LONDON BRITISH GLASS MAKER PILKINGTON PLC SAID IT AGREED TO SELL ITS SOLA EYEGLASS LENS BUSINESS FOR 315 MILLION TO A COMPANY CONTROLLED BY AEA INVESTORS INC THE NEW YORK INVESTMENT GROUP WHOSE MEMBERS INCLUDE SEVERAL RETIRED CHIEF EXECUTIVES THE SALE OF SOLA BASED IN MENLO PARK CALIF IS SUBJECT TO APPROVAL OF PILKINGTON SHAREHOLDERS AND FINALIZATION OF AEA'S FINANCING A SPOKESMAN FOR PILKINGTON SAID THE COMPANY EXPECTS TO COMPLETE THE SALE IN OCTOBER PILKINGTON SAID THE PURCHASE PRICE REPRESENTS AN 84 MILLION PREMIUM OVER THE VALUE OF SOLA ASSETS AFTER DEDUCTING COSTS AND ACCOUNTING ADJUSTMENTS RELATED TO THE SALE PILKINGTON SAID IT IS SELLING SOLA WHICH MAKES EYEGLASS AND SUNGLASS LENSES TO CONCENTRATE ON ITS CORE BUSINESS THE MANUFACTURE OF BUILDING AND CAR WINDOWS THE COMPANY SAID IT WOULD USE PROCEEDS TO REDUCE BORROWINGS AEA OFFICIALS WEREN'T AVAILABLE FOR COMMENT HOWEVER IN THE PAST THE INVESTMENT GROUP INCLUDED FORMER SECRETARY OF STATE HENRY KISSINGER AND SEVERAL FORMER CHIEF EXECUTIVES INCLUDING REGINALD JONES OF GENERAL ELECTRIC CO ROGER SMITH OF GENERAL MOTORS CORP AND CHARLES L BROWN JR OF AMERICAN TELEPHONE & TELEGRAPH CO 9309030047 930903 INTERNATIONAL VW MEETING NEARS PUSHING SHARES UP 32 BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG SHARES ROSE 32 TO 37950 MARKS 22869 IN FRANKFURT YESTERDAY IN ADVANCE OF A SUPERVISORY BOARD MEETING TODAY THAT IS EXPECTED TO FOCUS ON THE INDUSTRIAL ESPIONAGE FUROR SURROUNDING VW PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA DESPITE RUMORS SWIRLING THROUGH THE MARKET THAT THE MEETING COULD LEAD TO THE REMOVAL OR SUSPENSION OF MR LOPEZ AND POSSIBLY EVEN VW CHAIRMAN FERDINAND PIECH MOST TRADERS SEEMED TO BE RELYING ON SIGNALS COMING FROM VW CIRCLES THAT THE MEETING WOULDN'T BRING ANY DRASTIC DECISIONS AGAINST THE MANAGERS TRADERS SEEMED TO FIND CAUSE FOR OPTIMISM IN OTHER THEORIES BOUNCING AROUND THE MARKET EITHER VW IS ABLE TO KEEP MR LOPEZ AND PUSH THROUGH A DESPERATELY NEEDED COSTCUTTING PROGRAM THEREBY RAISING CHANCES OF A RECOVERY OR A COSTCUTTER FROM ASEA BROWN BOVERI AG IS ABOUT TO BE NAMED TO SUCCEED MR LOPEZ THUS REMOVING THE CLOUD OF SCANDAL HOVERING OVER VW MR LOPEZ IS ACCUSED OF HAVING ABSCONDED WITH SENSITIVE DOCUMENTS WHEN HE JUMPED FROM GENERAL MOTORS CORP TO VW IN MARCH NO OFFICIAL CHARGES HAVE YET BEEN FILED MR LOPEZ DENIES ANY WRONGDOING PREVIOUSLY IT WAS EXPECTED THAT THE SUPERVISORY BOARD TODAY WOULD BE GETTING AT LEAST SOME RESULTS OF AN AUDITOR'S INVESTIGATION INTO THE CASE BUT AS OF YESTERDAY IT WAS UNCLEAR WHETHER THE AUDITOR KPMG DEUTSCHE TREUHANDGESELLSCHAFT WOULD GO FORWARD WITH SUCH A REPORT AT THE MEETING KPMG'S ABILITY TO CONDUCT A THOROUGH PROBE HAS BEEN CAST IN DOUBT BY LAST WEEK'S RAID ON VW OFFICES IN WHICH CARTONS OF DOCUMENTS AND OTHER MATERIALS WERE CONFISCATED BY PROSECUTORS VW ASSERTED YESTERDAY THAT THE ROUTINELY SCHEDULED SUPERVISORY BOARD MEETING ISN'T EXPECTED TO YIELD ANY SPECTACULAR DECISIONS A VW SPOKESMAN FURTHER DISMISSED THE RUMORS OF MR LOPEZ'S OR MR PIECH'S DISMISSAL AS BANAL NONSENSE BEYOND DISCUSSING THE ACCUSATIONS AGAINST MR LOPEZ THE SUPERVISORY BOARD ALSO WILL TAKE UP THE COMPANY'S ECONOMIC SITUATION AND OTHER ROUTINE MATTERS PETER HARTZ PERSONNEL DIRECTOR AT GERMAN STEELMAKER SAARSTAHL AG IS EXPECTED TO BE NAMED SUCCESSOR TO ALEXANDER KOWLING THE VW BOARD MEMBER RESPONSIBLE FOR PERSONNEL MATTERS WHO DIED RECENTLY PEOPLE CLOSE TO THE SUPERVISORY BOARD SAID THE SUPERVISORY BOARD IS IN CHARGE OF HIRING AND FIRING MANAGEMENT BOARD MEMBERS AFTER THE GROUP LAST MET ON AUG 6 AT AN EMERGENCY MEETING TO DISCUSS THE LOPEZ AFFAIR IT ANNOUNCED THAT MR LOPEZ AND HIS COLLEAGUES HAD INDEED DESTROYED SOME GM DOCUMENTS BUT THE SUPERVISORY BODY AT THAT TIME ASSERTED ITS BELIEF MR LOPEZ HAD COMMITTED NO WRONGDOING AND REITERATED ITS SUPPORT OF HIM SINCE THEN THERE HAVEN'T BEEN ANY NEW FACTS THAT HAVE COME TO LIGHT SO THERE IS NO REASON TO CHANGE OUR STANCE SAID AN INDIVIDUAL CLOSE TO THE BOARD OF COURSE IF NEW FACTS COME TO LIGHT THINGS COULD CHANGE THE INDIVIDUAL CAUTIONED 9309030046 930903 COMMODITIES SILVER PRICES DECLINE NEARLY 18 CENTS AN OUNCE ON HEAVY FUND SELLING OTHER METALS ALSO FALL BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SILVER FUTURES PRICES CRACKED THURSDAY DRIVEN NEARLY 18 CENTS AN OUNCE LOWER ON HEAVY SELLING BY NEW YORKBASED COMMODITY FUNDS SILVER'S WEAKNESS PULLED THE OTHER PRECIOUS METALS DOWN IN ITS WAKE TRADERS SAID THE FUNDS OR MANAGED POOLS OF INVESTORS' MONEY PUMMELED THE WHITE METAL IN MOSTLY TECHNICAL TRADING THROUGHOUT THE SESSION SEVERAL MAJOR FUNDS WERE MUSCLING THE MARKET AROUND SAID A SENIOR SILVER TRADER AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR DECEMBER DELIVERY SWOONED 175 CENTS TO SETTLE AT 461 AN OUNCE OR JUST ABOVE ITS INTRADAY LOW OF 440 ON THE COMEX SILVER USED WIDELY IN THE PHOTOGRAPHIC AND ELECTRONIC INDUSTRIES HAS BEEN UNDERMINED RECENTLY BY REPORTS OF WEAK ECONOMIC GROWTH IN THE US EUROPE AND JAPAN TRADERS SAID THERE'S BEEN A BUILDUP OF PESSIMISM ABOUT THE ECONOMY IN THIS MARKET SAID IAN MACDONALD SENIOR METALS TRADER FOR CREDIT SUISSE IN NEW YORK THE GERMANS ARE STILL VERY RELUCTANT TO CUT INTEREST RATES AND THE NEWS COMING OUT OF THIS COUNTRY IS THAT THE ECONOMY IS NOT LOOKING VERY HEALTHY MR MACDONALD ADDED GOLD A TRADITIONAL INFLATION HEDGE THAT TENDS TO APPRECIATE ON NEWS OF A STRENGTHENING GLOBAL ECONOMY ALSO SUFFERED FROM FUND SELLING THE ACTIVE DECEMBER GOLD CONTRACT SKIDDED 630 AN OUNCE TO 36630 ON THE COMEX IT WAS A GENERAL LIQUIDATION ALL AROUND GOLD WAS HIT AROUND THE SAME TIME MR MACDONALD SAID THE CREDIT SUISSE ANALYST SAID THAT BOTH THE SILVER AND GOLD MARKETS WILL CONTINUE TO RESPOND TO LESS THAN ENCOURAGING ECONOMIC NEWS THEY'RE GOING TO BE UNDER PRESSURE MAJOR CUTS IN DEFENSE SPENDING AND THE ADMINISTRATION'S COSTCUTTING HEALTH PROGRAM WILL SERVE AS A MAJOR DRAG ON THE ECONOMY MR MACDONALD SAID TRADERS SAID THAT THE DECEMBER GOLD CONTRACT FOUND KEY SUPPORT AT THE 366ANOUNCE LEVEL YESTERDAY THEY SAID THAT THE YELLOW METAL WOULD HAVE TO HOLD AT YESTERDAY'S LOW OF 364 IN THE SESSIONS AHEAD OR IT WOULD BE SET FOR A FALL TO THE MID TO LOW 350S JUST OVER A MONTH AGO THE DECEMBER GOLD CONTRACT WAS TRADING AROUND 405 AN OUNCE CLIMBING TO AN INTRADAY HIGH OF 414 ON AUG 2 THE METAL FOLLOWING AN AD HOC STABILIZATION AGREEMENT AMONG EUROPEAN EXCHANGE RATE MECHANISM CURRENCIES THEN PLUNGED 2260 TO SETTLE AT 38070 A ONEDAY DECLINE OF NEARLY 6 ON AUG 5 SINCE THAT CORRECTION THE METAL HAS BEEN SHAKY DECLINING IN FITS AND STARTS TO CURRENT LEVELS TED ARNOLD SENIOR METALS EXPERT WITH MERRILL LYNCH IN LONDON AND AMONG THE MORE BEARISH OF BROKERAGEHOUSE GOLD ANALYSTS SAID HE BELIEVES THAT WEAK DEMAND FOR GOLD BULLION FROM THE MIDDLE EAST AND ASIA AT CURRENT PRICE LEVELS WILL BRING GOLD FUTURES DOWN TO A MORE STABLE TRADING RANGE UNDER 350 AN OUNCE HE SAID THAT DEMAND FROM THOSE TWO PRICESENSITIVE REGIONS HAS ALL BUT DRIED UP ARABS AND ASIANS HAVE A FIRM IDEA OF WHERE THEY WANT TO BUY GOLD THEY ARE NOT GOING TO CHASE A PRICE HE SAID ANY PROSPECTIVE RALLY HE PREDICTED WILL BE MET WITH SUBSTANTIAL SELLING BY GOLDMINING COMPANIES HOPING TO LOCK IN PROFITS OTHER PRECIOUS METALS ENDED SHARPLY LOWER YESTERDAY PLATINUM FOR OCTOBER DELIVERY SHED 800 AN OUNCE TO 37310 ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM FOR DECEMBER DELIVERY DROPPED 150 AN OUNCE TO 12150 GRAINS & SOYBEANS PRICES OF MOST CORN AND SOYBEAN FUTURES CONTRACTS ROSE AS SOME METEOROLOGISTS FORECAST A CHANCE OF CROPKILLING FROST TONIGHT FOR PARTS OF WESTERN CORN BELT STATES SUCH AS IOWA AND SOUTH DAKOTA THE GRAIN MARKETS ARE PARTICULARLY SENSITIVE TO PREDICTIONS OF EARLY FROSTS THEY USUALLY OCCUR IN OCTOBER BECAUSE MANY RAINDELAYED FIELDS WON'T MATURE FOR SEVERAL WEEKS FUTURES PRICES WERE ALSO SUPPORTED BY REPORTS THAT RUSSIA IS BEGINNING TO BUY US CROPS WITH A FOODAID PACKAGE GRANTED SEVERAL MONTHS AGO BY THE CLINTON ADMINISTRATION ACCORDING TO JOHN KLEIST DIRECTOR OF AGRICULTURAL RESEARCH AT CHICAGOBASED QUANTUM FINANCIAL SERVICES INC RUSSIA IS TENDERING FOR 250000 METRIC TONS OF US CORN THE MOVE TRIGGERED SPECULATION THAT RUSSIA MIGHT BEGIN TO BUY SOYBEAN MEAL SHORTLY IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR SEPTEMBER DELIVERY ROSE 15 CENTS A BUSHEL TO SETTLE AT 227 A BUSHEL THE SOYBEAN CONTRACT FOR SEPTEMBER DELIVERY ROSE SEVEN CENTS A BUSHEL TO SETTLE AT 6595 A BUSHEL SEVERAL COMMODITY ANALYSIS FIRMS ARE EXPECTED TO UPDATE THEIR US HARVEST PROJECTIONS TODAY IN ANTICIPATION OF THE MONTHLY FORECASTS SCHEDULED FOR RELEASE BY THE AGRICULTURE DEPARTMENT NEXT WEEK ENERGY CRUDEOIL FUTURES PRICES CLOSED UNCHANGED IN YESTERDAY'S TRADING ON THE NEW YORK MERCANTILE EXCHANGE MARKET PLAYERS SEEMED A BIT RELUCTANT TO STAKE OUT POSITIONS TOO FAR IN EITHER DIRECTION THIS CLOSE TO THE US LABOR DAY HOLIDAY WHICH WILL CLOSE THE EXCHANGE ON MONDAY IN ADDITION THE MOST RECENT NEWS DEVELOPMENT TO INFLUENCE PRICES THE GENERAL LABOR STRIKE IN NIGERIA PRESENTED CONFLICTING SIGNALS NEWS REPORTS SAID THAT THE COUNTRY'S MAIN LABOR ORGANIZATION WAS CALLING OFF THE STRIKE BUT THAT THE OIL WORKERS' UNION PLANNED TO STAY OFF WORK THE UPCOMING HOLIDAY AND THE CONFUSION OVER NIGERIA RESULTED IN OCTOBER CRUDE ENDING THE DAY AT 1797 A BARREL UNCHANGED FROM WEDNESDAY AFTER TRADING BETWEEN 1782 AND 1810 DURING THE SESSION HEATING OIL FOR OCTOBER DELIVERY WAS UP 08 CENT A GALLON TO 532 CENTS AND OCTOBER GASOLINE FELL 34 CENT TO 5134 CENTS AFTER THE DECLINES OF RECENT SESSIONS NATURALGAS FUTURES ROSE IN LIGHT TRADING YESTERDAY 9309030045 930903 BUSINESS BRIEF FUJI PHOTO FILM CO COMPANY DENIES ALLEGATIONS BY KODAK ON UNFAIR PRICING FUJI PHOTO FILM CO DENIED EASTMAN KODAK CO'S ALLEGATIONS THAT FUJI IS DUMPING COLOR PHOTOGRAPHIC PAPER IN THE US MARKET IN A STATEMENT YESTERDAY THE US UNIT OF TOKYOBASED FUJI SAID IT DOES NOT ENGAGE IN UNFAIR TRADE PRACTICES AND WILL VIGOROUSLY DEFEND ITS PRICING POLICIES THE PAPER IS USED TO MAKE COLOR PRINTS THIS WEEK KODAK THE MAJOR US PHOTO COMPANY FILED A PETITION WITH THE US DEPARTMENT OF COMMERCE AND THE INTERNATIONAL TRADE COMMISSION ALLEGING THAT FUJI SELLS THE PAPER IN THE US AT PRICES AS LOW AS ONEFOURTH ITS PRICES IN JAPAN KODAK ROCHESTER NY IS ASKING THE AGENCIES TO SET TARIFFS ON THE PAPER IN ITS STATEMENT FUJI SAID IT OFFERS A BETTER CHEAPER COLOR PAPER THAN KODAK WHOSE PRODUCT DOMINATES THE MARKET A KODAK SPOKESMAN DECLINED TO COMMENT ON THE CRITICISM SAYING THAT DISCUSSION OF ANY OTHER ISSUE MERELY DIVERTS ATTENTION AWAY FROM THE REAL ISSUE OF ILLEGAL TRADE PRACTICE 9309030044 930903 ENTERPRISE JTH'S UNIT MAY OFFER CASE STUDY FOR SMALL CONCERNS PLASTICS COMPANY REFUSING TO BUCKLE IN SHAKEOUT NOW REAPS REWARDS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL DUANE NEAL HAS GOOD NEWS FOR SMALL FIRMS STRUGGLING THROUGH INDUSTRY SLUMPS TO THE SURVIVORS GO THE SPOILS IN THE MID1980S MR NEAL'S FM CORP WAS FIGHTING FOR ITS LIFE AS WERE MANY OTHER SMALL PLASTICS COMPANIES THAT USED A MANUFACTURING TECHNIQUE CALLED STRUCTURALFOAM MOLDING DEMAND FOR THE PLASTIC HOUSINGS THAT FM MADE FOR COMPUTERS HAD PLUMMETED WHEN CUSTOMERS TURNED TO PRODUCTS MADE BY A COMPETING PROCESS OVER A TWOYEAR PERIOD THE ROGERS ARK CONCERN ENTERED AND EMERGED FROM BANKRUPTCY COURT PROCEEDINGS SHUT DOWN ONE OF TWO PLANTS AND RAISED NEW FUNDING FROM ITS INVESTORS SAYS MR NEAL FM'S PRESIDENT WORKING OUT THE COMPANY'S PROBLEMS TOOK US A WHILE HE SAYS BUT WHILE THE COMPANY RECOVERED HALF OF ITS COMPETITORS DIDN'T MEANWHILE NEW APPLICATIONS FOR STRUCTURALFOAM PLASTIC AROSE LEAVING FM ONE OF ONLY A HANDFUL OF COMPANIES TO MEET RISING DEMAND AS A RESULT FM THE PRINCIPAL UNIT OF JTH COS IS PROJECTING A 50 SURGE IN SALES THIS YEAR TO 24 MILLION THE PAIN OF AN INDUSTRY SHAKEOUT IS ONLY TOO REAL FOR SMALL COMPANIES THEIR RESOURCES STRETCHED TO THE LIMIT MANY GIVE UP AND THOSE WHO PLOD ON OFTEN WONDER IF THE STRUGGLE IS WORTH IT TO THEM FM PROVIDES A HEARTENING ANSWER ONCE THE MARKET BOUNCES BACK THEY WILL HAVE A BIGGER AND MORE PROFITABLE SHARE OF IT MR NEAL AND OTHER SURVIVORS WHO REMAINED IN THE MARKET ARE REAPING THE BENEFITS OF THEIR TENACITY SAYS JACK MURPHY A STAFF DIRECTOR AT SOCIETY OF THE PLASTICS INDUSTRY A WASHINGTON TRADE GROUP SEVERAL OTHER INDUSTRIES DOMINATED BY SMALLER FIRMS INCLUDING PRINTING METAL FABRICATION AND MACHINING ALSO ARE IN THE THROES OF SIMILAR SHAKEOUTS NOTES GARY BROOKS PRESIDENT OF ALLOMET PARTNERS A NEW YORK BUSINESSTURNAROUND CONSULTING FIRM IN EACH OF THESE INDUSTRIES HE SAYS THE SURVIVORS WILL HAVE A CHANCE TO CAPITALIZE ON AN UNUSUAL OPPORTUNITY FEWER PLAYERS IN WHAT SHOULD BE A STABLE OR EXPANDING MARKET WHILE THEIR INDUSTRY COULD BECOME OVERCROWDED AGAIN FM AND ABOUT TWO DOZEN OTHER COMPANIES THAT USE THE STRUCTURALFOAM MOLDING PROCESS ARE NOW IN THAT ENVIABLE POSITION THE LAST TIME THEY WERE RIDING HIGH WAS IN THE LATE 1970S AND EARLY 1980S WHEN DEMAND FROM THE COMPUTER INDUSTRY SOARED BUT BY THE MID1980S THE ADVANTAGES OF STRUCTURALFOAM MOLDING OVER A RIVAL METHOD KNOWN AS SOLIDINJECTION MOLDING HAD SLIPPED AWAY FOR EXAMPLE AS THE SIZE OF MACHINES SHRANK THE LIGHTER WEIGHT OF STRUCTURALFOAM PRODUCTS MATTERED LESS BY 1986 THE BUSINESSMACHINES MARKET BEGAN SWITCHING IN EARNEST FROM STRUCTURAL FOAM TO SOLIDINJECTION MOLDING SAYS ROGER YOUNG OF YOUNG IDEAS A PLASTICSINDUSTRY CONSULTANT IN FORT LAUDERDALE FLA THE STRUCTURALFOAM BUSINESS HAD SO BUILT ITS RELIANCE ON BUSINESS MACHINES AND THE COMPUTER MARKET THAT A LOT OF PLAYERS DROPPED OUT MR YOUNG SAYS ESTIMATING THAT THE NUMBER OF SUCH COMPANIES HAS DWINDLED TO AS FEW AS 20 FROM 50 BEFORE 1986 THE GUYS WHO SURVIVED WERE ABLE TO MOVE INTO DIFFERENT AREAS THEY FOUND MANY NEW OUTLETS ENCLOSURES FOR MEDICAL AND COMMUNICATIONS EQUIPMENT LAWN AND GARDEN TOOLS SATELLITE ANTENNA DISKS WASTE CANS ROAD BARRIERS AND SEATS FOR SKI LIFTS OF ALL THE NEW APPLICATIONS THE MOST PROMISING BECAME PALLETS AND CONTAINERS USED IN MATERIAL HANDLING PLASTICS AND OTHER NONTRADITIONAL MATERIALS NOW ACCOUNT FOR ONEQUARTER OF THAT ESTIMATED 2 BILLION MARKET UP FROM LESS THAN 5 A DECADE AGO ACCORDING TO MATERIAL HANDLING INDUSTRY A TRADE GROUP AT DEKALB MOLDED PLASTICS INC IN BUTLER IND COMPUTERS AND COPIERS ACCOUNTED FOR 80 OF SALES BEFORE THE COMPANY BEGAN DIVERSIFYING IN THE EARLY 1980S SAYS JEFF RODGERS PRESIDENT OF THE JSJ CORP UNIT TODAY SUCH PRODUCTS ACCOUNT FOR ONLY 35 OF THE COMPANY'S SALES BY BRANCHING OUT BEFORE THE COMPUTER MARKET BOTTOMED OUT WE AVOIDED A LOT OF THE BIG DROPS IN SALES OF SOME OF OUR COMPETITORS MR RODGERS SAYS AND BY 1991 HE ADDS BUSINESS HAD REVIVED TO WHERE WE WERE FLAT OUT OF CAPACITY DEMAND SLOWED SOME LAST YEAR MAINLY BECAUSE OF REDUCED ORDERS FROM INTERNATIONAL BUSINESS MACHINES CORP MR RODGERS SAYS BUT FOR 1993 SALES ARE EXPECTED TO GROW 10 TO 12 TO ABOUT 10 MILLION HE SAYS I THINK THERE'S GOING TO BE A LOT OF APPLICATIONS FOR STRUCTURAL FOAM FOR A LOT OF YEARS MR RODGERS ADDS THE SUPPLYDEMAND IMBALANCE THAT DEKALB AND ITS PEERS ARE ENJOYING HAS BEEN COMPOUNDED BY A SHORTAGE OF STRUCTURALFOAM MOLDING MACHINES IN THE WAKE OF THE INDUSTRY'S SHAKEOUT THERE IS NOW ONLY ONE ACTIVE US MANUFACTURER OF SUCH EQUIPMENT THE PLASTICSMACHINERY DIVISION OF JOHNSON CONTROLS INC THE RESULT HAS LEFT STRUCTURALFOAM MOLDERS WITH AN UNUSUAL PROBLEM FINDING EQUIPMENT TO EXPAND SOME COMPANIES ARE BUYING COMPETITORS TO ADD CAPACITY CARSONBROOKS PLASTICS INC IN GLENDORA CALIF ACQUIRED A CALIFORNIABASED RIVAL THIS PAST NOVEMBER AND USED FOUR OF THE MACHINES IT PICKED UP IN THE DEAL TO OPEN ITS FIRST OVERSEAS PLANT IN IRELAND THE ACQUISITION IS EXPECTED TO DOUBLE THE SIZE OF THE BUSINESS IN THE NEXT FIVE YEARS SAYS DALE HARNISH A CARSONBROOKS VICE PRESIDENT WHO PROJECTS THE COMPANY'S 1993 REVENUE AT 30 MILLION W STANLEY ROSANIA PRESIDENT OF STRUCTURAL FOAM PLASTICS INC IN NORTH BRANCH NJ ALSO HAS PURCHASED COMPETITORS MOST RECENTLY A CHICAGO CONCERN IT BOUGHT IN 1990 BUT WITH THE RANKS OF ACQUISITION CANDIDATES THINNING AS WELL MR ROSANIA IS CONTEMPLATING A GRANDER PLAN HIS COMPANY WHOSE ANNUAL SALES TOTAL ABOUT 25 MILLION IS TALKING TO A SUPPLIER AND MACHINE BROKER ABOUT BUILDING A MOLDINGMACHINE PRODUCTION PLANT THE FIRST HALFDOZEN MACHINES WILL BE USED BY STRUCTURAL PLASTICS TO MEET PROJECTED DEMAND OVER THE NEXT TWO YEARS THEN THE VENTURE WOULD START SELLING TO OUTSIDERS I'VE NEVER SEEN THE MARKET AS TIGHT AS IT IS NOW SAYS DAVID ANDERSON OF ANDERSON & ASSOCIATES A SOMERS CONN MOLDINGMACHINE BROKER AND CONSULTANT AND MR ROSANIA'S POTENTIAL PARTNER AND HE PREDICTS THE SHORTAGE IS ONLY GOING TO GET WORSE THERE ARE MACHINES OUT THERE THAT ARE 30 YEARS OLD AND GOING ON THEIR FOURTH OWNER MR ANDERSON SAYS EVENTUALLY THIS STUFF HAS GOT TO BE REPLACED 9309030043 930903 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY SEALING THE DEAL THE US MOVES TO TIE UP LOOSE ENDS OF THE MIDEAST PACT US OFFICIALS EXPECT SYRIA TO GRUDGINGLY ACQUIESCE TO THE ISRAELIPALESTINIAN ACCORD MOSTLY BECAUSE OF ASSAD'S INTEREST IN IMPROVING RELATIONS WITH WASHINGTON CHRISTOPHER WINS PROMISES OF FINANCIAL SUPPORT FROM JAPAN EUROPEAN COMMUNITY AND SCANDINAVIAN NATIONS AND ASSUMING THE DEAL HOLDS SAUDI ARABIA CLINTON STANDS BY TO BREAK ANY LOGJAMS BUT HIS INTERVENTION SO FAR ISN'T NEEDED MIDEAST ANALYSTS PREDICT PROLONGED HAGGLING OVER ELEMENTS IN THE DOCUMENT INCLUDING THE MAKEUP OF THE ENVISIONED PALESTINIAN POLICE FORCE HOW FAR ISRAELI FORCES WILL WITHDRAW FROM THE JERICHO AREA AND THE REFUGEE ISSUE BUT OPTIMISTIC AIDES ALREADY MAKE PLANS FOR A CLINTON APPEARANCE AT AN EXPECTED WASHINGTON SIGNING CEREMONY THE ACCORD SIDESTEPS THE KNOTTIEST ISSUE JERUSALEM BY POSTPONING TALKS UNTIL THE THIRD YEAR OF AUTONOMY CONGRESSIONAL DEMOCRATS FACE AN AUTUMN OF DISCONTENT DIVISIVE FIGHTS LOOM EVEN BEYOND THE TWIN PRIORITIES OF NAFTA AND HEALTH CARE CLINTON IS INTENT ON PASSING A CAMPAIGNFINANCE BILL THOUGH HOUSE AND SENATE DEMOCRATS WISH HE WOULD PUNT ALSO THE ADDITIONAL BUDGETCUTTING STEPS HE PROMISED PARTY CONSERVATIVES IN RETURN FOR SUPPORT ON THE BUDGET BILL WILL PROVOKE OPPOSITION FROM LIBERALS AND APPROPRIATORS LIKE SEN BYRD GORE'S REINVENTING GOVERNMENT INITIATIVES TO BE ANNOUNCED NEXT WEEK ALSO ARE MET WITH SUSPICION A CRIME BILL ON THE AGENDA THIS FALL WILL ANTAGONIZE DEATHPENALTY OPPONENTS AND A DEFENSE BILL WILL BE THE VEHICLE FOR DEBATE ON CLINTON'S HOMOSEXUALSINTHE MILITARY COMPROMISE JOBLESSNESS WORRIES PERSIST IN THE ADMINISTRATION DESPITE SOME POSITIVE SIGNS WITH ABOUT A MILLION JOBS CREATED IN THE FIRST HALF OF THIS YEAR CLINTON IS ON TRACK TOWARD HIS GOAL OF ADDING EIGHT MILLION JOBS IN FOUR YEARS BUT THE NEW WHITE HOUSE ECONOMIC FORECAST SHOWS THE JOBLESS RATE 68 IN JULY WITH AUGUST NUMBERS DUE TODAY FALLING ONLY SLOWLY TO AVERAGE 65 NEXT YEAR PRIVATE ECONOMISTS SAY THE CONTINUING STREAM OF LAYOFF ANNOUNCEMENTS BY BIG COMPANIES DEPRESSES CONSUMER SPIRITS ADMINISTRATION OFFICIALS WORRY ABOUT THE ECONOMY'S SURPRISING FAILURE TO CREATE JOBS MORE RAPIDLY UPWARD REVISIONS IN COMMERCE DEPARTMENT GROWTH DATA MAKE EVEN MORE PRONOUNCED AND MORE STRIKING THE FACT THAT WHILE OUTPUT WAS GROWING JOBS AND EMPLOYMENT WERE NOT SAYS CLINTON ECONOMIC ADVISER LAURA TYSON WHITE HOUSE OFFICIALS CONCEDE THAT NO MATTER HOW THEY FIDDLE WITH THE DESIGN OF THE HEALTHCARE PLAN PRIVATE ECONOMISTS WILL PREDICT IT WILL COST JOBS DEMOCRATS SIGH WITH RELIEF TO FIND THAT MANY LAWMAKERS HOME FOR VACATION AREN'T BEING BOMBARDED WITH COMPLAINTS ABOUT THE DEFICITREDUCTION BILL INSTEAD MANY FIND THAT CONSTITUENTS ARE EAGERLY AWAITING CLINTON'S HEALTHCARE REFORM PROPOSALS THE DEMOCRATIC NATIONAL COMMITTEE PLANS TO HOLD HOUSE PARTIES ACROSS THE NATION ON SEPT 22 THE NIGHT OF THE PRESIDENT'S SPEECH IT HAS PRINTED BUMPER STICKERS AND A MASS MAILING TO PUSH THE CLINTON PLAN WELCOME SURPRISE THE WHITE HOUSE SAYS THAT THE GOVERNMENT WILL SPEND 55 BILLION LESS THAN EXPECTED THIS YEAR ON MEDICAID THE HEALTHCARE PROGRAM FOR THE POOR AND 36 BILLION LESS OVER FIVE YEARS IT CREDITS LOWER THAN ANTICIPATED PAYMENTS TO HOSPITALS SERVING THE POOR FOR INPATIENT CARE AND FOR LONGTERM INSTITUTIONAL CARE WHERE THERE'S FIRE THERE'S CALIFORNIA REP STARK WHO MANAGED TO SLIP A PROVISION INTO THE FINAL TAX BILL THAT DIDN'T SHOW UP IN THE ORIGINAL HOUSE AND SENATE VERSIONS IT BROADENS TAX RELIEF GRANTED HOMEOWNERS WHO LOSE THEIR HOMES IN DISASTERS AND IS RETROACTIVE TO SEPT 1 1991 PERFECT TIMING FOR VICTIMS OF THE OCTOBER 1991 FIRES IN STARK'S EAST BAY DISTRICT NOTHING PERSONAL NAFTA OPPONENT ROSS PEROT WHOSE LATEST BOOK ACCUSES US TRADE NEGOTIATORS OF SELLING OUT TO MEXICO OFFERED TO FLY TRADE REPRESENTATIVE MICKEY KANTOR HOME FROM SWITZERLAND AFTER HE SUSTAINED A BACK INJURY ONE OF KANTOR'S AIDES DECLINED THE OFFER BUT QUIPPED THAT PEROT SHOULD SUPPORT THE TRADE AGREEMENT INSTEAD PEROT DECLINED CLINTON PLANS A PUBLIC FLURRY ON REINVENTING GOVERNMENT HE AND GORE WILL FOLLOW TUESDAY'S KICKOFF OF THE REORGANIZATION EFFORT WITH AT LEAST THREE DAYS ON THE ROAD NEXT WEEK AMONG OTHER THINGS CLINTON WILL SIGN AN EXECUTIVE ORDER ESTABLISHING CHIEF OPERATING OFFICERS IN EACH CABINET AGENCY THEY WILL BELONG TO A MANAGEMENT COUNCIL TO BE HEADED BY WHITE HOUSE MANAGEMENT CHIEF PHIL LADER THE REST OF SEPTEMBER WILL FEATURE OTHER EXECUTIVE ORDERS CUTTING RED TAPE AND ESTABLISHING CUSTOMERORIENTED PROGRAMS BY OCTOBER THE PRESIDENT WILL UNVEIL LEGISLATION CALLING FOR RESCISSIONS OF GOVERNMENT SPENDING PROGRAMS TO WHICH OTHER GOVERNMENTEFFICIENCY PROPOSALS COULD BE ATTACHED AT LEAST TWO OTHER BILLS ARE FORESEEN AS WELL FOR CIVILSERVICE AND PROCUREMENT CHANGES MINOR MEMOS IN HER NEW TOME FEMININE FORCE GEORGETTE MOSBACHERWIFE OF BUSH'S COMMERCE SECRETARY AND CLOSE PALWRITES MANICURES PEDICURES FACIALS HAIR CARE EXERCISE MAKEUP I CALL THESE NECESSITIES NOT LUXURIES TREASURY SECRETARY BENTSEN AT 72 THE OLDEST MEMBER OF THE CLINTON CABINET NOW HAS THE YOUNGEST CHIEF OF STAFF 27YEAROLD JOSHUA STEINER 9309030042 930903 DR PEPPER ADOPTS POISON PILL' MEASURE TO RAISE COSTS OF ANY BID BY CADBURY BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS DR PEPPER/SEVENUP COS UPPED THE ANTE IN ITS SHOWDOWN WITH CADBURY SCHWEPPES PLC ADOPTING A POISON PILL MEASURE MEANT TO FORCE CADBURY TO PAY HANDSOMELY FOR ANY TAKEOVER OF THE COUNTRY'S NO 3 SOFTDRINK MAKER THE MEASURE WOULD BE TRIGGERED IF CADBURY ALREADY DR PEPPER'S LARGEST SHAREHOLDER WITH A 259 STAKE INCREASED ITS HOLDING TO 26 OR MORE IT WOULD GIVE ALL SHAREHOLDERS EXCEPT CADBURY THE RIGHT TO ACQUIRE DR PEPPER COMMON SHARES AT A 50 DISCOUNT BUT DR PEPPER SAID THE PLAN WON'T BE TRIGGERED IF ITS BOARD APPROVES A TENDER OR EXCHANGE OFFER THAT IS IN THE BEST INTERESTS OF THE COMPANY THEY'RE SAYING IF YOU'RE OUR SUITOR YOU'D BETTER BE PROPERLY AMOROUS SAID TOM PIRKO PRESIDENT OF BEVMARK INC A BEVERAGE CONSULTING FIRM WITH CONSOLIDATION IN THE SOFTDRINK INDUSTRY EXPECTED MR PIRKO AND OTHER ANALYSTS SAID THE PAIRING OF DR PEPPER WITH CADBURY THE WORLD'S THIRDLARGEST AND AMERICA'S FOURTHLARGEST SOFTDRINK CONCERN WOULD BE A LOGICAL ONE THE FACEOFF BEGAN LAST WEEK AFTER CADBURY SPENT 2318 MILLION TO RAISE ITS STAKE IN DR PEPPER TO 259 FROM 57 AT THAT TIME THE LONDONBASED CONCERN SAID IT DIDN'T PLAN TO ACQUIRE MORE SHARES THAT IT WAS WILLING TO SIGN A STANDSTILL AGREEMENT AND THAT IT WAS DISCUSSING GAINING A SEAT ON DR PEPPER'S SEVENMEMBER BOARD BUT WHEN DR PEPPER DISMISSED THE IDEA OF YIELDING A SEAT ON THE BOARD CADBURY RESPONDED BY SAYING IT WOULD CONVERT ITS SHARES WHICH HAVE RESTRICTED RIGHTS INTO VOTING SHARES AS SOON AS IT GETS FEDERAL GOVERNMENT APPROVAL CADBURY ADDED THAT IT WAS PREPARED TO FILE PROMPTLY A PREMERGER NOTIFICATION WITH THE SECURITIES AND EXCHANGE COMMISSION SUCH NOTICE REQUIRED BY FEDERAL LAW WOULD LAY THE GROUNDWORK FOR CADBURY TO BOOST ITS STAKE TO 50 OR MORE BUT CADBURY ALSO INDICATED IT WOULD BACK OFF IN EXCHANGE FOR A BOARD SEAT WE ARE CLEARLY NOT MAKING AN OFFER AND DR PEPPER CLEARLY IS NOT INTERESTED IN ENTERTAINING AN OFFER SAID CHRIS MILBURN CADBURY'S DIRECTOR OF INVESTOR RELATIONS BUT HE ADDED WE ARE NOT COMMITTED TO NOT MAKING A BID BUT MR PIRKO THINKS ALL OF THIS IS JUST PART OF AN ELABORATE MATING RITUAL THAT WILL EVENTUALLY LEAD TO SOME COMBINATION OF WHAT HE TERMED THE TWO STRONGEST ELEMENTS OUTSIDE THE COKE AND PEPSI SYSTEMS UNDER DR PEPPER'S SHAREHOLDERRIGHTS PLAN THE COMPANY WOULD ISSUE TO EXISTING STOCKHOLDERS ONE RIGHT TO BUY ONETHOUSANDTH OF A SHARE OF A NEW PREFERRED STOCK FOR EACH SHARE HELD THE EXERCISE PRICE WOULD BE 90 AND EACH ONETHOUSANDTH OF A SHARE OF THE PREFERRED STOCK WOULD ESSENTIALLY EQUAL ONE SHARE OF COMMON THE RIGHTS WOULD KICK IN 10 DAYS AFTER THE PUBLIC ANNOUNCEMENT THAT SOME PERSON OR GROUP ACQUIRED 10 OF THE COMPANY'S VOTING COMMON STOCK OR AFTER THE BEGINNING OF A TENDER OFFER TO ACQUIRE 10 OR MORE EXCEPT IN THE CASE OF CADBURY FOR WHICH THE THRESHOLD TRIGGER WOULD BE 26 AT THAT POINT THE RIGHTS BECOME RIGHTS TO BUY COMMON STOCK AT A 50 DISCOUNT EXCEPT THAT THE RIGHTS HELD BY WHOEVER MADE THE STOCK PURCHASE THAT TRIGGERED THE PLAN BECOME VOID ALSO THE COMPANY SAID IF THE COMPANY IS MERGED OR IF 50 OR MORE OF ITS ASSETS OR EARNING POWER IS SOLD THE RIGHTS CONVERT TO RIGHTS TO PURCHASE THE ACQUIRER'S COMMON STOCK AT A 50 DISCOUNT 9309030041 930903 OILERS' BUDDY RYAN OFFENSIVE TO SOME IS ON THE DEFENSIVE THE ROUGHANDTUMBLE COACH IS BACK PRODDING PLAYERS TO KICK THOSE BLOCKERS BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO SPENCER TILLMAN A RUNNING BACK WITH FOOTBALL'S HOUSTON OILERS WHO HAS SURVIVED SIX YEARS OF POUNDING BY OPPONENTS SAYS HE HAS JUST DISCOVERED SENSELESS VIOLENCE AT THE HANDS OF HIS OWN TEAMMATES AFTER A PRACTICE SESSION HERE THE SOFTSPOKEN 206POUND MR TILLMAN COMPLAINS THAT HE WAS DRAGGED INTO THREE FISTFIGHTS IN LESS THAN 10 MINUTES BRAWLS BROKE OUT EVERYWHERE THIS SUMMER AT THE OILERS' TRAINING CAMP ONCE A LANGUID PLACE AND MANY PLAYERS ARE SCUFFLING FOR THE APPROVAL OF ONE MAN BUT THERE HASN'T BEEN SUFFICIENT HAVOC YET TO SATISFY JAMES BUDDY RYAN THE TEAM'S NEW DEFENSIVE COACH IN AN OKLAHOMA DRAWL DRIPPING WITH DISDAIN HE SAYS IT'S AWFUL LOWKEY VIOLENCE FROM WHAT I'M USED TO MR RYAN IS THE YOSEMITE SAM OF PROFESSIONAL FOOTBALL RASPING INSULTS AND BLUSTER AT HIS PLAYERS AND HIS BOSSES TO SAY NOTHING OF THE OPPOSITION MR RYAN EMBODIES THE OFTEN GRATUITOUS BRUTALITY OF THE SPORT WHEN HE WAS HEAD COACH OF THE PHILADELPHIA EAGLES IN 1989 THE DALLAS COWBOYS ACCUSED HIM OF OFFERING CASH TO HIS PLAYERS FOR INJURING OPPONENTS THE EAGLES HIT RIVAL QUARTERBACKS WITH SUCH FEROCITY THAT SIX OF THEM WERE FORCED FROM THE FIELD IN AN EIGHTGAME STRETCH A NATIONAL FOOTBALL LEAGUE INQUIRY HOWEVER FAILED TO SUBSTANTIATE THE BOUNTY ALLEGATION SO ORNERY IS THE 59YEAROLD MR RYAN THAT NO TEAM HAD BEEN WILLING TO HIRE HIM SINCE 1990 I THINK MOST TEAM OWNERS ARE AFRAID OF BUDDY SAYS MEL KIPER JR A FOOTBALL ANALYST FOR ESPN INC A CABLETV SPORTS CHANNEL UNDER HIS GRUFF FACADE THERE'S A DICTATOR THE MAIN REASON THAT MR RYAN HAS A JOB IN HOUSTON IS THAT THE OILERS WERE HUMILIATED IN THEIR SEASON FINALE LAST JANUARY THE TEAM AHEAD 353 MIDWAY THROUGH THE THIRD QUARTER OF A PLAYOFF GAME AGAINST THE BUFFALO BILLS FELL APART AND MISSED A CHANCE TO ADVANCE TOWARD THE SUPER BOWL IT WAS THE LARGEST LEAD THAT HAS EVER EVAPORATED IN PRO FOOTBALL THE DEBACLE CAME ON THE 70TH BIRTHDAY OF THE OILERS' OWNER PETROLEUM MOGUL KS BUD ADAMS JR I DON'T KNOW HOW IT COULD BE MORE DEVASTATING YOU DON'T EXPECT TO BE 32 POINTS AHEAD LATE IN THE GAME AND STILL LOSE HE SAYS AFTER FIRING THE DEFENSIVE SQUAD'S COACH HE HIRED MR RYAN AS A SOMEWHAT BITTER ANTIDOTE BLUNT TO ANY AND ALL MR RYAN HAS ALREADY BLAMED THE LOSS IN BUFFALO ON AMONG OTHERS JACK PARDEE THE OILERS' HEAD COACH AND THE MAN TO WHOM MR RYAN REPORTS HE SAYS THE OILERS' ORGANIZATION WENT BRAIN DEAD IN BUFFALO THE GENTLEMANLY MR PARDEE SAYS DIPLOMATICALLY THAT HE WELCOMES MR RYAN'S HELP MR RYAN BRINGS A WINNER'S REPUTATION HIS DEFENSIVE STRATEGIES AND FIERY MOTIVATIONAL STYLE HAVE PREVIOUSLY HELPED TAKE THE NEW YORK JETS MINNESOTA VIKINGS AND CHICAGO BEARS TO SUPER BOWLS AND HE HAS STORMED INTO THE MIDST OF THE HAPLESS OILERS AS THEIR SELFPROCLAIMED SAVIOR PUBLICLY PROMISING NOTHING LESS THAN A SUPER BOWL VICTORY THIS SEASON THAT PLEDGE MAY BE TOUGH TO FULFILL THE OILERS HOLD PRO FOOTBALL'S ALLTIME RECORD FOR LOSING IN THE STADIUMS OF OPPONENTS 23 IN A ROW IN THE EARLY 1980S THEIR OVERALL WINNING RECORD SINCE 1960 IS A MERE 46 THAT COMPARES WITH 59 FOR THE RIVAL DALLAS COWBOYS AND THE NFL BEST OF 61 FOR THE LOS ANGELES RAIDERS AND THE MIAMI DOLPHINS THE RIDICULE THE OILERS ENDURE HAS BEEN EXACERBATED BY SUCH INEPT FORMER COACHES AS THE LATE BILL PETERSON WHO HAD A RECORD OF ONE WIN AND 18 LOSSES HE ONCE ORDERED PRACTICING PLAYERS YOU GUYS PAIR OFF IN GROUPS OF THREES THEN LINE UP IN A CIRCLE IN CONTRAST MR RYAN IS A FIREPLUG OF A MAN WHO PERPETUALLY PLANTS HIS HANDS ON HIS HIPS GETS IN THE FACES OF LINEMEN TWICE HIS SIZE AND SNARLS SUCH INSTRUCTIONS AS WHEN YOU TACKLE SOMEBODY KEEP AT IT UNTIL HE EITHER DROPS THE BALL OR THE REFEREE STOPS YOU HE MAKES NO APOLOGIES FOR HIS ROUGH BRAND OF BALL A MIXTURE OF MAYHEM AND SCARE TACTICS THERE COMES A TIME WHEN YOU HAVE TO BLOODY SOMEBODY'S NOSE HE SAYS SOME OF MR RYAN'S FAVORITE FORMER PLAYERS DESCRIBE HIM AS AN EXPERT EMOTIONAL BUTTONPUSHER HE GETS IN YOUR HEAD AND ONCE HE DOES IT'S EXCITING SAYS GARY FENCIK WHO PLAYED FOR MR RYAN ON THE 1985 CHICAGO BEARS CHAMPIONSHIP TEAM AND IS NOW VICE PRESIDENT OF A BANK WHAT HAS BEEN MISSING FROM THE OILERS IS AGGRESSIVENESS BUT THAT SHOULDN'T BE A PROBLEM NOW SAYS JOE THEISMAN A FORMER WASHINGTON REDSKINS QUARTERBACK WHO IS NOW AN ESPN COMMENTATOR HE SAYS BUDDY'S PERSONA IS CREATING SOCALLED MONSTERS THE HEART OF MR RYAN'S MANEUVERS IS HARD HITTING THAT DOESN'T END UNTIL REFEREES WHISTLE THEMSELVES BLUE SAYS DOUG PLANK A FORMER BEAR WHOSE CRUDE STYLE ENDEARED HIM TO MR RYAN I LIKE TO THINK I GAVE BUDDY EVERYTHING I HAD BEFORE AND AFTER THE WHISTLE STILL MR RYAN CAN BE SOMETHING OF A SOFTY SAYS HIS WIFE JOAN SHE RECALLS HIS BRINGING HOME A STRAY CAT THAT WAS HANGING AROUND THE EAGLES' LOCKER ROOM YEARS AGO IT WAS HOWLING AND IT WAS GOING TO GET STEPPED ON EXPLAINS MR RYAN THE RYANS ALSO OWN 28 RACEHORSES ON A FARM IN LAWRENCEBURG KY NEAR LEXINGTON MR RYAN IS THE SON OF A PROFESSIONAL RODEO BULL RIDER WHO PAINTED HOUSES AND HAD TO SELL HIS SON'S PET HORSE TO MAKE ENDS MEET IN FREDERICK OKLA ABOUT 60 MILES SOUTHWEST OF OKLAHOMA CITY THERE WASN'T MUCH OPPORTUNITY AND BUDDY JUST PICKED HIMSELF UP FROM HAVING NOTHING SAYS FRANCY YOUNG MR RYAN'S HIGHSCHOOL PRINCIPAL AND FOOTBALL COACH MR YOUNG REMEMBERS HIS PROTEGE AS A DISCIPLINARY CHALLENGE MR RYAN'S OWN FATHER WROTE HIM OFF AS A FOOTBALL FAILURE AFTER ATTENDING ONLY ONE GAME OF THE FREDERICK BOMBERS YOUNG BUDDY WAS EJECTED BY THE REFEREE FOR FIGHTING TOO SMALL FOR PRO FOOTBALL AFTER PLAYING FOUR YEARS AT OKLAHOMA STATE UNIVERSITY MR RYAN THREW HIMSELF INTO COACHING HE LANDED A STRING OF HIGHSCHOOL AND COLLEGE JOBS FOLLOWED BY 26 SEASONS IN THE PROS ALTHOUGH HIS BRASH MANNER HAS A HISTORY OF QUICKLY WEARING THIN WITH MANAGEMENT MR RYAN IS HAVING IT ALL HIS OWN WAY NOW THE OILERS' DEFENSIVE PLAYERS ARE SHOWING UP EARLY FOR PRACTICE FOR A CHANGE AND GRUNTING TO HIS TUNE BUT THEY HAVEN'T GOT IT YET DURING A RECENT DRILL WARREN MOON THE QUARTERBACK EMERGES FROM A VIP TENT AND DRIVES A GOLF CART TO PLAY AGAINST MR RYAN'S SWEATING GANG WITH SEEMING EASE HE PASSES A BALL OVER THE DEFENDERS TO A RECEIVER WHO ROMPS TO A TOUCHDOWN FROWNING MR RYAN SAYS I DON'T SEE ENOUGH TOUGHNESS HE RARELY DOES 9309030040 930903 ECONOMY RETAILERS' SALES WERE LACKLUSTER DURING AUGUST FULLPRICED FALL APPAREL CONSUMER UNCERTAINTY AND WEATHER ARE CITED BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S BIG RETAILERS REPORTED LACKLUSTER AUGUST SALES AS THE COMBINATION OF CONSUMER UNCERTAINTY HOT WEATHER AND FULLPRICED FALL APPAREL KEPT SHOPPERS AWAY FROM THE MALLS AUGUST SALES AT STORES OPEN AT LEAST A YEAR ROSE AN AVERAGE OF ABOUT 35 FROM THE PREVIOUS YEAR BASED ON THE WEIGHTED INDEXES OF SEVERAL RETAILERS' SALES COMPILED BY SALOMON BROTHERS INC AND ALEX BROWN & SONS INC THE SHOWING WAS WORSE THAN SOME ANALYSTS EXPECTED INDEED SOME ANALYSTS SAID THE SLOW START TO THE BACKTOSCHOOL SEASON SUGGESTED THAT CONSUMERS AREN'T LIKELY TO STEP UP THEIR SPENDING DURING THE SECOND HALF OF THE YEAR WE ARE STILL SEEING PUNY GROWTH IN BUYING POWER AND A GREAT DEAL OF CONSUMER UNCERTAINTY WITH REGARD TO CLINTON'S PROGRAMS SAID ROBERT BUCHANAN OF ALEX BROWN HE IS PREDICTING SAMESTORE SALES GROWTH OF ONLY 2 TO 3 DURING THE CRUCIAL CHRISTMAS SEASON FOR RETAILERS WITH LESS DISCOUNTED SUMMER APPAREL TO CHOOSE FROM THAN A YEAR EARLIER CAUTIOUS SHOPPERS IN AUGUST SPENT MAINLY ON HOUSEHOLD GOODS FURNITURE AND APPLIANCES MOST RETAILERS SAID THEIR BACKTOSCHOOL APPAREL BUSINESS GOT OFF TO A SLOW START APPAREL SALES WERE SIGNIFICANTLY WEAKER THAN OTHER CATEGORIES IN AUGUST PARTLY BECAUSE THIS YEAR STORES WERE OFFERING A HIGHER PERCENTAGE OF FALL MERCHANDISE AT REGULAR PRICES NOTED JEFFREY EDELMAN AN ANALYST AT CJ LAWRENCE INC HE ADDED MALL TRAFFIC HAS BEEN WAY OFF BECAUSE THE HOT SPELL OF WEATHER AROUND THE COUNTRY HASN'T BEEN CONDUCIVE TO BACKTOSCHOOL SHOPPING THE NATION'S LARGEST RETAILER WALMART STORES INC REPORTED RESULTS THAT WERE MORE MODEST THAN USUAL WITH SAMESTORE SALES INCREASING ONLY 4 WALMART BENTONVILLE ARK BLAMED ITS SAM'S WAREHOUSE CLUBS DIVISION WHERE SAMESTORE SALES FELL 7 SAM'S HAS BEEN HURT BY CANNIBALIZATION TOO MANY OF ITS STORES IN OVERLAPPING MARKETS AND LOWER PRICES IN CIGARETTES WALMART SAID WALMART SHARES FELL 1 OR 42 TO 2475 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMONG THE STANDOUTS FOR THE MONTH WERE BEST BUY CO THE MINNEAPOLIS CONSUMERELECTRONICS AND APPLIANCE CHAIN WHERE SALES AT STORES OPEN AT LEAST A YEAR JUMPED 26 AND CHICAGOBASED SEARS ROEBUCK & CO WHERE SAMESTORE SALES ROSE 109 BOOSTED BY CONTINUED STRONG DEMAND FOR APPLIANCES APPAREL AND HOMEOFFICE EQUIPMENT ON THE BIG BOARD BEST BUY SHARES GAINED 3375 OR 99 TO 37625 AND SEARS SHARES CLIMBED 375 CENTS TO 5475 AT MAY DEPARTMENT STORES INC OF ST LOUIS SAMESTORE SALES ROSE 5 BUT MAY SHARES FELL 1125 OR 27 TO 40875 AT KMART CORP BASED IN TROY MICH SAMESTORE SALES ROSE 34 THE COMPANY'S STOCK FELL 50 CENTS TO 22375 BUT AUGUST WAS SLUGGISH FOR APPAREL SPECIALTY RETAILERS AT MERRYGOROUND ENTERPRISES INC SAMESTORE SALES FELL 16 MICHAEL D SULLIVAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE JOPPA MD COMPANY ATTRIBUTED THE DISAPPOINTING RESULTS TO A LACK OF CONFIDENCE IN THE ECONOMY AND NO DISCERNIBLE FASHION TREND MERRYGOROUND SHARES FINISHED UNCHANGED AT 7875 AT LIMITED INC COLUMBUS OHIO SAMESTORE SALES FELL 1 REFLECTING AN ESTIMATED 10 DROP AT THE LIMITED STORES DIVISION ACCORDING TO ANALYSTS AT GAP INC SAMESTORE SALES FELL 3 SAMESTORE SALES FOR THE SAN FRANCISCO RETAILER INCREASED 6 IN AUGUST 1992 WHEN A SPECIAL PROMOTION ON JEANS BOOSTED BUSINESS GAP SHARES DROPPED 1625 OR 57 TO 27125 WHILE LIMITED STOCK SLIPPED 875 CENTS TO 2225 DESPITE THE WEAK APPAREL SALES ANALYSTS SAID THAT RETAILERS SOLD MORE FALL CLOTHES IN AUGUST THIS YEAR WHICH SHOULD RESULT IN HIGHER PROFIT MARGINS LIMITED AND GAP TOLD US THAT THE AMOUNT OF FULLPRICE MERCHANDISE THEY SOLD WAS SUBSTANTIAL SAID MR EDELMAN BUT NOW SEPTEMBER SALES ARE THE KEY FOR THE QUARTER THE STORES HAVE GOT TO GET THE CONSUMER TRAFFIC BACK HE ADDED EVEN THOUGH RETAILERS HAVE DECLARED MUCH OF THIS YEAR THAT THEY WERE WATCHING INVENTORIES MORE CLOSELY AUGUST RESULTS STILL FAILED TO MEET INTERNAL PLANS INCLUDING AT JC PENNEY CO WHERE SAMESTORE SALES ROSE 3 THE PLANO TEXAS COMPANY'S STOCK FELL 75 CENTS TO 41125 AND AT CINCINNATIBASED FEDERATED DEPARTMENT STORES INC SAMESTORE SALES ROSE 21 THE RESULT WAS SLIGHTLY BELOW EXPECTATIONS REFLECTING A CONTINUED WEAKNESS IN WOMEN'S APPAREL SAID ALLEN QUESTROM FEDERATED CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN A STATEMENT IN LIGHT OF CONTINUED WEAK CONSUMER CONFIDENCE MR QUESTROM PREDICTED THAT FEDERATED'S SAMESTORE SALES GROWTH FOR THE REST OF THE YEAR WILL BE ABOUT 2 FEDERATED SHARES FELL 875 CENTS TO 20 IN BIG BOARD COMPOSITE TRADING DESPITE LOW CONSUMER CONFIDENCE RETAILERS ARE STILL OPTIMISTIC IN EXPECTING A MODEST BOUNCE IN FALL APPAREL SALES IN SEPTEMBER AND OCTOBER AS FRUGAL SHOPPERS ARE LIKELIER TO BUY CLOSER TO THE TIME OF NEED 9309030039 930903 DEALERS IN SECURITIES BANKS GET MORE TIME TO ADJUST TO NEW LAW WASHINGTON THE TREASURY DEPARTMENT GRANTED BANKS AND SECURITIES DEALERS MORE TIME TO ADJUST TO A NEW LAW THAT REQUIRES THEM TO CHANGE THE WAY THEY ACCOUNT FOR ASSETS FOR TAX PURPOSES THE BUDGET LAW ENACTED LAST MONTH CONTAINS A PROVISION THAT REQUIRES FINANCIAL INSTITUTIONS TO VALUE INVENTORIES OF CERTAIN SECURITIES AT MARKET PRICES RATHER THAN AT COST OR OTHER BASES IT WOULD APPLY TO SECURITIES HELD FOR TRADING RATHER THAN INVESTMENT PURPOSES THE CHANGE WHICH APPLIES TO TAX RETURNS FILED FOR FISCAL YEARS ENDING DEC 31 OR LATER IS EXPECTED TO BOOST FEDERAL REVENUES BY 38 BILLION OVER FIVE YEARS THE LAW GAVE BANKS AND FIRMS UNTIL NEXT THURSDAY TO IDENTIFY INVESTMENT SECURITIES THAT WILL BE EXEMPT FROM THE NEW ACCOUNTING RULES FINANICAL INSTIUTIONS ARGUED THAT THEY NEEDED MORE TIME AND THE TREASURY DELAYED THE DEADLINE TO OCT 31 THE LAW SAYS THAT BANKS THAT MAKE AND THEN REGULARLY SELL LOANS WILL BE TREATED AS DEALERS WHO MUST MARK THEIR SALEABLE ASSETS TO MARKET THIS COULD MEAN THAT MANY BANKS THAT MAKE STUDENT LOANS AND THEN SELL THEM TO THE STUDENT LOAN MARKETING ASSOCIATION OR THRIFTS THAT SELL MORTAGES TO THE FEDERAL HOME LOAN MORTGAGE CORP WOULD BE TREATED AS DEALERS A TREASURY OFFICIAL SAID THE DEPARTMENT PLANS TO ISSUE REGULATIONS DETAILING HOW BROADLY THE GOVERNMENT WILL INTERPRET THE LAW 9309030038 930903 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN MAJOR JAPANESE COMPANIES IN THE CURRENT FISCAL YEAR ARE LIKELY TO POST THEIR FOURTH PROFIT DROP IN A ROW AND THE THIRD CONSECUTIVE AVERAGE DECLINE TOPPING 10 WAKO RESEARCH INSTITUTE OF ECONOMICS AN AFFILIATE OF WAKO SECURITIES CO PREDICTED THAT FOR THE YEAR ENDING MARCH 31 COMBINED UNCONSOLIDATED PRETAX PROFITS OF 377 COMPANIES WILL FALL 169 FROM A YEAR EARLIER IT PROJECTED COMBINED SALES WILL FALL 29 FOR THE THIRD DROP IN A ROW THE INSTITUTE ALSO PREDICTED EARNINGS WON'T RECOVER UNTIL LATE 1994 OR SIX MONTHS LATER THAN ITS PREVIOUS FORECAST WAKO BLAMED THE DELAY ON AN UNSEASONABLY COOL SUMMER LAGGING PUBLICWORKS PROJECTS BECAUSE OF PAYOFF SCANDALS IN THE CONSTRUCTION INDUSTRY AND THE SURGE IN THE YEN'S VALUE ON FOREIGNEXCHANGE MARKETS BUT FOR THE YEAR ENDING IN EARLY 1995 WAKO SAID OVERALL UNCONSOLIDATED PROFITS COULD RISE 107 AND SALES 31 AS GOVERNMENT STIMULUS MEASURES KICK IN AND CONSUMER SPENDING INCREASES GRADUALLY EUROPEAN COMMUNITY OFFICIALS MEETING WITH ISRAELI FOREIGN MINISTER SHIMON PERES PLEDGED SUPPORT FOR A PALESTINIAN GOVERNMENT IN THE ISRAELIOCCUPIED GAZA STRIP AND WEST BANK CITY OF JERICHO THE EC VOWED TO PROVIDE TECHNICAL HELP AND INVESTMENT SUPPORT TO THE AUTONOMOUS REGIONS PROPOSED IN PEACE TALKS THE EC DIDN'T SPECIFY AN AID SUM BUT THE PALESTINIANS HAVE UNOFFICIALLY REQUESTED 130 MILLION TO BUILD A SELFGOVERNING AREA MR PERES SAID REGIONAL PEACE WILL REQUIRE US HELP TOO EC AND ISRAELI OFFICIALS ALSO AGREED TO BROADEN THEIR 1975 FREETRADE ACCORD NOW LIMITED TO INDUSTRIAL GOODS HO CHI MINH CITY RESIDENTS EACH SPEND 160 A YEAR ON FOOD ALMOST 17 TIMES MORE THAN THEY SHELL OUT FOR CLOTHING JUST 950 THAT MAKES THE VIETNAMESE CITY FORMERLY SAIGON PROMISING FOR FOOD MARKETERS SURVEY RESEARCH GROUP VIETNAM SAID THOUGH POVERTY IS DECLINING LIVING STANDARDS REMAIN LOW FOOD STORAGE IS PRIMITIVE IN MOST HO CHI MINH CITY DWELLINGS MAKING DAILY FOOD SHOPPING A NECESSITY FOOD ACCOUNTS FOR 70 OF HOUSEHOLD SPENDING BUT MEALS EATEN OUTSIDE THE HOME ARE INCREASING BRITAIN'S OPPOSITION LABOR PARTY ACCUSED RUPERT MURDOCH'S NEWS CORP OF MONOPOLIZING THE BRITISH MEDIA IT CALLED FOR AN ANTITRUST INVESTIGATION FOLLOWING THIS WEEK'S LAUNCH OF A PACKAGE BY MR MURDOCH'S BRITISH SKY BROADCASTING NETWORK GIVING SATELLITE TELEVISION VIEWERS A CHOICE OF MORE THAN 20 CHANNELS INCLUDING SIX NEW ONES THE PARTY SAID THE UNREGULATED GROWTH OF MR MURDOCH'S EMPIRE IS AN AFFRONT TO A DEMOCRATIC SOCIETY NEWS CORP ALSO OWNS FIVE NATIONAL NEWSPAPERS PROMISING A CRACKDOWN ON CORRUPTION TAIWAN'S CABINET AGREED TO TOUGHEN PRISON TERMS OFFER REWARDS FOR WHISTLEBLOWING AND REQUIRE CIVIL SERVANTS TO REPORT GIFTS VALUED AT MORE THAN 75 THE MOVE WAS A RESPONSE TO A GROWING PUBLIC CLAMOR FOR A CLEANUP THE CABINET'S IMAGE WAS HURT IN JUNE BY ITS UNSUCCESSFUL ATTEMPT TO BLOCK A SWEEPING ANTICORRUPTION LAW IN PARLIAMENT THE GOVERNMENT WILL COMBAT BRIBETAKING AND INFLUENCEPEDDLING IN PUBLICWORKS CONTRACTS CIVIL SERVANTS CONVICTED OF BRIBERY FACE THREE YEARS IN JAIL THE GOVERNMENT WILL PAY AS MUCH AS 220000 TO ANYONE WHO EXPOSES CORRUPTION ILLEGAL AND INTENSIVE TRAWLING AND CHEMICAL POLLUTION THREATEN TO WIPE OUT SARDINES OFF TUNISIA OFFICIALS SAID OTHER OCEAN SPECIES AND UNDERSEA PLANT FOODSTOCKS FOR FISH IN THE GULF OF GABES ONE OF THE MEDITERRANEAN SEA'S MOST IMPORTANT NATURAL FISHERIES ALSO ARE IMPERILED TO PROTECT FISH STOCKS ABOUT 300 TRAWLERS HAVE BEEN BANNED FROM LEAVING THE PORT OF SFAX SINCE AUG 1 AS FISHING FLEETS GREW CATCHES PLUNGED 22 TO 28000 TONS LAST YEAR FROM 36000 TONS IN 1988 THE NUMBER OF SARDINES HAS SHRUNK BY TWOTHIRDS THE BANK OF CHINA MIGHT MERGE ITS 14 HONG KONG SISTER BANKS TO HELP ENSURE MONETARY STABILITY IN THE BRITISH COLONY FOLLOWING ITS TAKEOVER BY CHINA IN 1997 PEOPLE IN THE BANKING INDUSTRY TOLD THE KYODO NEWS AGENCY THE STATEOWNED BANKING GROUP NEXT YEAR WILL START ISSUING HONG KONG BANKNOTES NOW DONE ONLY BY TWO LONDONBASED FIRMS STANDARD CHARTERED BANK AND HONGKONG & SHANGHAI BANKING CORP THE BANK OF CHINA IS SAID TO BE STUDYING HOW TO PREPARE FOR A ROLE AS HONG KONG'S QUASICENTRAL BANK SHOULD HONGKONG BANK SHED THAT RESPONSIBILITY BUT SOME ANALYSTS SAID THE BANK OF CHINA HAS INSUFFICIENT EXPERTISE TO RUN A CENTRAL BANK AND MAY INSTEAD JUST BE MOVING TO TRY TO UNIFY ITS IMAGE SEPARATELY CHINESE GOVERNMENT OFFICIALS SPENT 173 BILLION ON ENTERTAINMENT AND TRAVEL LAST YEAR THE BEIJINGOWNED CHINA NEWS SERVICE SAID IN AN ATTACK ON CORRUPTION WHICH IT WARNED WAS UNDERMINING SUPPORT FOR THE COMMUNIST PARTY A ONEDAY STRIKE ORGANIZED BY A MUSLIM FUNDAMENTALIST ALLIANCE LARGELY SHUT DOWN PAKISTAN'S TWO BIGGEST CITIES KARACHI AND LAHORE THE WALKOUT WAS STAGED TO PROTEST RISING FOOD AND GASOLINE PRICES RESULTING FROM THE GOVERNMENT'S ECONOMIC REFORM PROGRAM IN RUSSIA WHERE TAX EVASION IS RIFE IN THE TRANSFORMING ECONOMY TAX POLICE WITH A BUDGET OF JUST 35 MILLION RAKED IN 808 MILLION IN UNPAID TAXES THIS YEAR THROUGH AUGUST AND COLLECTED 66 MILLION IN FINES IN THE FIRST HALF 9309030037 930903 PACIFIC ENTERPRISES GAS UNIT LOS ANGELES PACIFIC ENTERPRISES' SOUTHERN CALIFORNIA GAS CO UNIT FILED FOR A 134 MILLION RATE INCREASE WITH THE CALIFORNIA PUBLIC UTILITIES COMMISSION THE GAS COMPANY SAID IT IS PROPOSING THE INCREASE IN RESPONSE TO NEW STATE AND FEDERAL DEREGULATION POLICIES AND TO NEW COMPETITION IN CALIFORNIA'S NATURALGAS MARKETS 9309030036 930903 LAW COMMERCE'S BROWN IS FACING QUESTIONS ON VIETNAM TIES WASHINGTON JUSTICE DEPARTMENT OFFICIALS ARE EXPECTED TO QUESTION COMMERCE SECRETARY RONALD BROWN REGARDING ALLEGATIONS HE SOUGHT 700000 TO REPRESENT VIETNAM ON FINANCIAL MATTERS BINH LY A FORT LAUDERDALE FLA BUSINESSMAN HAS CLAIMED SINCE LAST WINTER THAT MR BROWN MET WITH REPRESENTATIVES OF VIETNAM LAST NOVEMBER AND DECEMBER THAT WAS BEFORE MR BROWN TOOK OFFICE BUT AT LEAST ONE MEETING ALLEGEDLY OCCURRED AFTER HE HAD BEEN NOMINATED MR BROWN HAS VIGOROUSLY DENIED THE ACCUSATIONS A FEDERAL GRAND JURY IN MIAMI WHICH ALSO HAS BEEN INVESTIGATING THE ALLEGATIONS HAS QUESTIONED NGUYEN VAN HAO A FORMER VIETNAMESE GOVERNMENT OFFICIAL WHO ALLEGEDLY ACTED AS THE MIDDLEMAN BETWEEN MR BROWN AND THE VIETNAMESE GOVERNMENT MR HAO'S LAWYER JAMES MCGUIRK SAID MR HAO HAD NO COMMENT ABOUT THE GRAND JURY AT THE DECEMBER MEETING ACCORDING TO WHAT MR LY SAID MR HAO RECOUNTED MR BROWN OUTLINED SEVERAL AREAS IN WHICH HE WOULD ASSIST VIETNAM FOR A FEE INCLUDING LIFTING THE TRADE EMBARGO AGAINST VIETNAM SECURING FAVORABLE TARIFFS FOR VIETNAMESE IMPORTS AND ARRANGING FINANCING FOR OIL GAS TELECOMMUNICATIONS AND INFRASTRUCTURE PROJECTS THE REQUESTED FEE WAS 700000 PLUS OIL AND GAS ROYALTIES MR LY SAID A FEDERAL OFFICIAL HAS CONFIRMED THAT MR LY PASSED A LIE DETECTOR TEST GIVEN HIM BY FEDERAL BUREAU OF INVESTIGATION AGENTS MR LY SAID YESTERDAY THAT HE HASN'T BEEN CALLED TO TESTIFY BEFORE THE GRAND JURY AND THAT HE HASN'T TALKED TO THE FBI SINCE APRIL MR LY SAID HE IS A FORMER BUSINESS PARTNER OF MR HAO IN THE VIETNAM DEVELOPMENT CORP A DEFUNCT FIRM THAT SOUGHT ECONOMICDEVELOPMENT ASSISTANCE FOR VIETNAM MR LY SAID MR HAO TOLD HIM THAT MR HAO MET WITH MR BROWN IN A FORT LAUDERDALE RESTAURANT IN NOVEMBER AND AGAIN AT MR BROWN'S HOME IN DECEMBER AFTER PRESIDENT CLINTON HAD NOMINATED MR BROWN TO BE COMMERCE SECRETARY THE VIETNAMESE GOVERNMENT TOLD MR HAO IT WOULD SEND THE 700000 THROUGH BANKS IN HONG KONG AND SINGAPORE FOR HIM TO TRANSFER TO MR BROWN THROUGH AN INTERMEDIARY ACCORDING TO MR LY MR LY SAYS HE HAS NO KNOWLEDGE THAT MR BROWN EVER RECEIVED THAT MONEY 9309030035 930903 CORPORATE FOCUS RENAULT AND VOLVO ARE ON THE VERGE OF TYING THE KNOT FRENCHSWEDISH ENTITY WOULD SHARE NO 3 SPOT IN EUROPE'S AUTO MARKET BY TIMOTHY AEPPEL AND STEPHEN D MOORE STAFF REPORTERS OF THE WALL STREET JOURNAL LOOKING PROFESSORIAL AS HE PEERS OVER HIS HORNRIMMED GLASSES LOUIS SCHWEITZER MAPS OUT SOME OF THE REASONS WHY A MERGER OF FRANCE'S RENAULT SA AND SWEDEN'S AB VOLVO MAKES SENSE RENAULT IS STRONG IN EUROPE'S SOUTHERN TIER HE SAYS VOLVO IN THE NORTH AND THE TWO SELL MOSTLY COMPLEMENTARY RATHER THAN COMPETING MODELS BRINGING THE COMPANIES TOGETHER HAS A LOGIC SAYS THE 51YEAROLD RENAULT CHAIRMAN AND ON A LONGTERM BASIS LOGIC PREVAILS THE TWO CAR MAKERS LINKED BY CROSSSHAREHOLDINGS AND A BROAD STRATEGIC ALLIANCE SINCE 1990 COULD ANNOUNCE A FULL MARRIAGE WITHIN DAYS PERHAPS ON MONDAY BEFORE THE OPENING OF THE FRANKFURT AUTO SHOW INDUSTRY WATCHERS SAY FRENCH INDUSTRY MINISTER GERARD LONGUET LAST WEEK SAID NEGOTIATIONS WERE ON THE VERGE OF COMPLETION CONDITIONS WERE NEVER BETTER FOR COMPLETING THE BOND FRANCE IS RUSHING TO PRIVATIZE STATEOWNED CONCERNS INCLUDING RENAULT WHILE VOLVO HAS OVERCOME ITS HESITATION ABOUT ACCEPTING A MINORITY STAKE IN THE JOINT COMPANY OF COURSE A LASTMINUTE GLITCH COULD STILL DERAIL NEGOTIATIONS BOTH COMPANIES ARE CONSIDERED NATIONAL TREASURES MAKING MOVES TO ALTER OWNERSHIP TOUCHY ESPECIALLY IF IT MEANS BRINGING IN FOREIGNERS THE SWEDES WANT GUARANTEES THAT THEY WILL RETAIN INFLUENCE IN THE COMBINED ENTITY AND WOULD LIKELY BALK AT ANY TERMS THAT LOOK TOO MUCH LIKE A TAKEOVER BY RENAULT ONE IDEA FROM THE SWEDISH SIDE IS TO HAVE THE COMPANY'S CHAIRMANSHIP ALTERNATE BETWEEN VOLVO AND RENAULT APPOINTEES IN ADDITION DECISIONS REGARDING KEY ASSETS SUCH AS TRADEMARKS OR MANUFACTURING SYSTEMS WOULD REQUIRE QUALIFIED MAJORITIES WITH VOLVO HOLDING ENOUGH BOARD SEATS TO VETO PROPOSALS IT COULDN'T ACCEPT SPEAKING IN A RECENT INTERVIEW AT RENAULT'S GLASSBOX HEADQUARTERS ON THE OUTSKIRTS OF PARIS MR SCHWEITZER REFUSED TO COMMENT ON CONDITIONS OR THE TIMING OF A FULL MERGER WHETHER IT HAPPENS NOW OR LATER THE BLENDING OF VOLVO AND RENAULT IS ANOTHER SIGN OF EUROPE'S BAREFISTED COMPETITION THE COMBINED COMPANY WOULD CONTROL ABOUT 12 OF THE EUROPEAN CAR MARKET TYING IT WITH FRANCE'S PEUGEOT CITROEN SA FOR THE NO 3 SPOT IN EUROPE BEHIND VOLKSWAGEN AG WITH 167 AND GENERAL MOTORS CORP WITH 128 RENAULT CURRENTLY HOLDS ABOUT 106 OF THE MARKET VOLVO'S CURRENT MARKET SHARE IS ABOUT 14 AND THE TWO TOGETHER WOULD BE MORE OF A POWER IN HEAVY TRUCKS WITH ABOUT 23 OF THE EUROPEAN MARKET AND WORLDWIDE THEY WOULD BE THE SECONDBIGGEST HEAVYTRUCK MAKER AFTER DAIMLERBENZ AG'S MERCEDES UNIT PETER SCHMIDT OF AUTOMOTIVE INDUSTRY DATA LTD A BRITISH CONSULTING CONCERN PREDICTS THE MERGED COMPANY WILL DEVELOP INTO SOMETHING SIMILAR TO VW AND ITS SMALL LUXURY AUDI DIVISION VOLVO WILL BECOME THE MANUFACTURER FOR CHIC UPSCALE CARS HE SAYS WHILE RENAULT CONCENTRATES ON THE VOLUME MARKET BOTH WILL SAVE MONEY AND BE DOING WHAT THEY'RE BEST AT IT'S ALSO A STORY ABOUT HOW TWO VERY DIFFERENT COMPANIES EVOLVED AND CAME TO NEED ONE ANOTHER ONCE THE UGLY DUCKLING OF EUROPE'S AUTO INDUSTRY RENAULT IN 1986 WAS DEEP IN THE RED AND ONLY SURVIVED AS A RESULT OF A BAILOUT FROM THE FRENCH GOVERNMENT EVEN WHEN THEY ANNOUNCED THE ORIGINAL RENAULTVOLVO ALLIANCE IN 1990 THE FRENCH CAR MAKER WAS A VOLUME PRODUCER WITH A SPOTTY RECORD FOR RELIABILITY BUT SINCE THEN IT HAS EMERGED AS A MARKET LEADER THE FRENCH CAR MAKER HAS RACKED UP SIX STRAIGHT YEARS OF PROFIT AND IS EXPECTED TO STAY IN THE BLACK AGAIN THIS YEAR DESPITE EUROPE'S DISMAL CAR MARKET RENAULT SOLD TWO MILLION CARS AND LIGHT COMMERCIAL VEHICLES LAST YEAR A RECORD VOLVO MEANWHILE WAS THE STURDY LITTLE SWEDISH COMPANY THAT HAD BUILT ITS REPUTATION ON THE BACKS OF BOXY CARS KNOWN FOR THEIR SAFETY AND LOFTY PRICE TAGS IN THE US VOLVO'S STATION WAGON WAS A SPECIAL FAVORITE OF WOMEN AND FAMILIES BY THE LATE 1980S VOLVO CHAIRMAN PEHR GYLLENHAMMAR KNEW HE COULDN'T AFFORD TO REMAIN INDEPENDENT VOLVO NEEDED A BIG PARTNER WITH DEEP POCKETS THE COMPANY WAS MAKING RECORD PRETAX PROFITS 901 BILLION SWEDISH KRONOR IN 1987 AND EIGHT BILLION KRONOR IN 1988 11 BILLION AND 9776 MILLION RESPECTIVELY AT CURRENT EXCHANGE RATES BUT PLOWING MOST OF IT BACK INTO DEVELOPMENT OF THE COMPANY'S LONGAWAITED 850 MODEL THE 850 APPEARED TWO YEARS AGO AND HAS BEEN A BIG HIT BUT VOLVO STILL STUMBLED SOCKED WITH A TRIPLE WHAMMY AS THE BOTTOM FELL OUT OF ITS THREE MAIN MARKETS SIMULTANEOUSLY THE US BRITAIN AND SWEDEN AT THE SAME TIME VOLVO WAS SLOW TO RESPOND HANGING ON TO EXCESS CAPACITY FOR TOO LONG THE DEBUT OF COMPETITORS' MINIVANS HAS BEEN ANOTHER BLOW DEEP LOSSES RESULTED VOLVO EXECUTIVES ESTIMATE ITS CAR PRODUCTION WILL FALL TO BETWEEN 230000 AND 260000 FULLSIZE MODELS THOUGH THE MID1990S COMPARED WITH 300000 IN 1988 THIS SHIFT OF FORTUNES HAS ALTERED HOW THE TWO COMPANIES DEAL WITH EACH OTHER RENAULT'S MANAGERS SAY EARLY CONTACTS WERE SOMETIMES COMPLICATED BY WHAT THEY CONSIDERED THEIR SWEDISH COUNTERPARTS' HAUGHTY ATTITUDE INDEED SOME ANALYSTS CONTEND IT WAS THE HUMBLING OF VOLVO THAT MADE IT POSSIBLE TO REMOVE ONE OF THE MAIN BARRIERS TO A MERGER RENAULT IS CLEARLY ENJOYING ITS IMPROVED STATUS AND IS PUSHING AHEAD WITH A NEW RANGE OF MODELS AT THE COMPANY'S FACTORY AT FLINS OUTSIDE OF PARIS NEARLY HALF THE PRODUCTION SPACE IS NOW DEVOTED TO CHURNING OUT THE COMPANY'S POPULAR NEW TWINGO THE QUIRKYLOOKING MINICAR INTRODUCED EARLIER THIS YEAR IS A HIT WITH CONSUMERS AND IS GIVING RENAULT A STRONG FOOTHOLD IN THE FASTGROWING SEGMENT JUST BELOW THE SUBCOMPACT SIZE THE TWINGO TOGETHER WITH THE ESPACE MINIVAN HAS GIVEN THE COMPANY A REPUTATION AS AN INNOVATOR IN EUROPE'S CAR MARKET TALKING ABOUT A FULL MARRIAGE VOLVO OFFICIALS INITIALLY CLAIMED OVERALL SAVINGS FROM JOINT PURCHASING TRANSPORTATION AND COMMUNICATION WOULD BE AT LEAST 800 MILLION KRONOR A YEAR RISING TO TWO BILLION KRONOR ANNUALLY AFTER FIVE YEARS THE COMPANIES NOW CLAIM THAT SAVINGS WILL BE HIGHER THOUGH NO NEW PROJECTION FOR ANNUAL SAVINGS HAS BEEN RELEASED THE BIG SAVINGS WOULD COME FROM JOINT DEVELOPMENT OF MAJOR COMPONENTS SUCH AS CAR PLATFORMS ENGINES TRANSMISSIONS AND SUSPENSIONS EXECUTIVES ESTIMATED THAT COOPERATION ON MAJOR SYSTEMS FOR FUTURE MODELS COULD SLASH DEVELOPMENT COSTS BY AS MUCH AS 40 BUT EVEN IF THE COMPANIES MERGE THEIR VEHICLE OPERATIONS THE BIG SAVINGS WOULDN'T MATERIALIZE FOR AT LEAST A FEW YEARS THAT'S BECAUSE THE FIRST JOINT RENAULT/VOLVO CAR WILL BE THE SUCCESSOR TO VOLVO'S TOPOFTHELINE 960 MODEL EXPECTED TO APPEAR AROUND 1996 OR 1997 9309030034 930903 BUSINESS BRIEFS VARIAN ASSOCIATES INC A SALT LAKE CITY MAKER OF HIGHTECHNOLOGY INSTRUMENTS FOR MEDICAL SCIENTIFIC DEFENSE AND COMMUNICATIONS MARKETS ACQUIRED INTERARY INTERNATIONAL XRAY TUBE CORP OF CHARLESTON SC FOR AN UNDISCLOSED AMOUNT THERATECH INC A MAKER OF DRUG DELIVERY PRODUCTS FORMED A JAPANESE SUBSIDIARY NIHON THERATECH KABUSHIKI KAISHA OR THERATECH JAPAN THERATECH JAPAN WILL BE RESPONSIBLE FOR OPERATIONS IN JAPAN AND THROUGHOUT THE PACIFIC RIM MCKESSON CORP A HEALTHCARE PRODUCTS AND SERVICES COMPANY WAS AWARDED TWO CONTRACTS TOTALING 428 MILLION A YEAR BY THE US DEPARTMENT OF DEFENSE FOR THE SUPPLY OF PHARMACEUTICALS TO ARMED FORCES MEDICAL FACILITIES IN THE SAN FRANCISCO AREA KETEMA INC SOLD ITS ALUMINUM EXTRUSION DIVISION TO COLUMBIA ALUMINUM CORP VANCOUVER WASH FOR ABOUT 10 MILLION HANGER ORTHOPEDIC GROUP INC ACQUIRED THE PRECISION FIT KNEEBRACING BUSINESS FROM 3M HEALTH CARE A DIVISION OF MINNESOTA MINING & MANUFACTURING CO UNC INC ACQUIRED METCALF SERVICING CO ODESSA TEXAS WHICH SERVES THE INDUSTRIAL TURBINEENGINE MARKET 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 9309030033 930903 THREEYEAR FREEZE APPEARS TO BE SET ON RIGHTS FOR US AIRLINES IN GERMANY BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GERMAN AND US NEGOTIATORS AGREED TO A THREEYEAR FREEZE ON THE RIGHTS OF US AIRLINES TO SERVE GERMANY PEOPLE CLOSE TO THE TALKS SAID THE APPARENT BREAKTHROUGH IS THE FIRST SIGN OF PROGRESS SINCE THE TALKS BEGAN TWO YEARS AGO TO REPLACE AN AVIATION TREATY THAT GIVES US AIRLINES LIBERAL ACCESS TO GERMANY BUT SEVERAL THORNY ISSUES REMAIN INCLUDING HOW TO HANDLE LIKELY JOINT SERVICE ARRANGEMENTS CALLED CODE SHARING BETWEEN LUFTHANSA GERMAN AIRLINES AND US CARRIERS ALSO UNCLEAR IS WHAT HAPPENS AFTER THE THREE YEARS AND A TWOYEAR PERIOD OF RESTRICTED GROWTH THAT WAS ALSO AGREED TO THE CLINTON ADMINISTRATION HAS BEEN SEEKING OPENSKY AGREEMENTS WITH GERMANY AND OTHER COUNTRIES BUT GERMANY WHOSE AIRLINES HAVE BEEN BATTERED BY LOWERCOST US RIVALS HAS SOUGHT A RESTRICTIVE AGREEMENT SUCH AS THE ONE BRITAIN HAS WITH THE US EARLIER THIS YEAR GERMAN CHANCELLOR HELMUT KOHL THREATENED TO RENOUNCE GERMANY'S TREATY WITH THE US AS SOON AS SEPT 15 IF PROGRESS TOWARD A NEW AGREEMENT WEREN'T MADE US AND GERMAN TRADE NEGOTIATORS WHO MET FOR THREE DAYS IN BONN THIS WEEK ARE SCHEDULED TO RESUME THEIR TALKS NEXT WEEK HERE THE TWO COUNTRIES ARE NOW OPERATING UNDER AN INTERIM TREATY EXPIRING OCT 31 THAT FREEZES US ACCESS GERMANY HAD BEEN SEEKING TO EXTEND THAT FREEZE FOR SEVEN YEARS WHILE THE US HAD ARGUED FOR NO MORE THAN A FOURYEAR FREEZE PEOPLE FAMILIAR WITH THE TALKS SAID GERMAN NEGOTIATORS ARE OFFERING VERY LIBERAL RIGHTS FOR US CARGO CARRIERS A US OFFICIAL SAID BUT HE CAUTIONED THAT ALL OF THIS IS STILL UNDER NEGOTIATION DELTA AIR LINES WHICH HAS THE MOST FLIGHTS TO GERMANY OF ANY US CARRIER HAS SOUGHT TO ENSURE THAT EXISTING RIGHTS AREN'T ROLLED BACK BUT COULD ACCEPT A TEMPORARY FREEZE A SPOKESMAN SAID YESTERDAY THE AIRLINE BASED IN ATLANTA HAD NO IMMEDIATE GROWTH PLANS FOR GERMANY AND ALREADY HAD ELIMINATED A MIAMITOFRANKFURT FLIGHT LAST MONTH A LUFTHANSA SPOKESMAN MEANWHILE SAID A FIVEYEAR AGREEMENT WOULD GIVE ENOUGH TIME TO LET DEMAND CATCH UP WITH THE AIRLINE CAPACITY BETWEEN GERMANY AND THE US ALSO WITHIN THAT TIME IT'S LIKELY SOME US AND GERMAN AIRLINES WILL BE WORKING CLOSELY TOGETHER LUFTHANSA WHICH IS MAJORITYOWNED BY THE GERMAN GOVERNMENT HAS BEEN TALKING WITH SEVERAL US CARRIERS INCLUDING UAL CORP'S UNITED AIRLINES AND AMR CORP'S AMERICAN AIRLINES ABOUT A CODESHARING ARRANGEMENT UNDER SUCH AN AGREEMENT THE US CARRIER WOULD USE LUFTHANSA FOR THE GERMAN LEG OF SOME TRANSATLANTIC FLIGHTS AND LUFTHANSA WOULD USE ITS PARTNER TO HANDLE SOME FLIGHTS WITHIN THE US SCHEDULES AND MARKETING WOULD BE COORDINATED SO THAT THE TICKET BUYER WOULD APPEAR TO BE FLYING A SINGLE AIRLINE BUT GERMANY BEFORE ENTERING SUCH AN ARRANGEMENT HAS BEEN SEEKING MORE LIBERAL TERMS TO THE PART OF THE TREATY WITH THE US THAT COVERS CODESHARING 9309030032 930903 LAW LEGAL BEAT COURT ACCESS TO HEARING IMPAIRED OPENING UP UNDER DISABILITIES ACT BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL COURTS ARE BECOMING MORE ACCESSIBLE TO THE HEARING IMPAIRED BUT SLOWLY IN RECENT YEARS DISABILITY RIGHTS ACTIVISTS HAVE PRESSED FOR CHANGES THAT WOULD OPEN UP THE LEGAL SYSTEM TO LITIGANTS AND MEMBERS OF THE LEGAL PROFESSION WHO ARE DEAF BUT THEIR EFFORTS SOMETIMES HAVE BEEN STYMIED BY COURTS' BUDGETARY CONSTRAINTS NOW NEW ATTENTION IS BEING PAID TO TECHNOLOGY AND BETTERTRAINED SIGNLANGUAGE INTERPRETERS TO MEET THE NEEDS OF THE HEARING IMPAIRED BECAUSE THE AMERICANS WITH DISABILITIES ACT MAKES COURTROOM ACCESSIBILITY A REQUIREMENT ABOUT 25 CITIES IN 19 STATES HAVE OUTFITTED SOME COURTROOMS WITH COMPUTERS CAPABLE OF REALTIME TRANSLATION WHICH CONVERTS A COURT REPORTER'S NOTES INTO WORDS ON A MONITOR SECONDS AFTER THEY ARE RECORDED OTHER STATES HAVE BEGUN TO WORRY ABOUT POTENTIAL LIABILITY UNDER THE ACT WISCONSIN FLORIDA KANSAS VIRGINIA MARYLAND AND DELAWARE ARE COMING UP WITH WAYS TO MAKE THEIR COURTROOMS MORE ACCESSIBLE SAYS ERICA WOOD A COAUTHOR OF AN AMERICAN BAR ASSOCIATION ACCESS GUIDE TO STATE COURTS NEVERTHELESS PROBLEMS FOR DEAF PEOPLE IN COURT ARE A LONG WAY FROM BEING SOLVED A REPORT BY NEW YORK CITY'S BAR ASSOCIATION ON THE DIFFICULTIES OF HEARINGIMPAIRED PEOPLE IN COURT CITED THE LOW PAY OF SIGNLANGUAGE INTERPRETERS THE FAILURE OF THE COURT SYSTEM TO RECOGNIZE THE EXISTENCE OF DIFFERENT SIGN LANGUAGES AND THE LACK OF LEGAL TRAINING FOR INTERPRETERS MANY WHO HAVE STUDIED THE ISSUE ARE FOCUSING ON IMPROVED TECHNOLOGY THE NATIONAL COURT REPORTERS ASSOCIATION TURNED US DISTRICT JUDGE ROGER G STRAND'S COURTROOM IN PHOENIX ARIZ INTO A LABORATORY FOR REALTIME TRANSLATION IN 1986 AND HAS UPDATED THE HARDWARE CONTINUOUSLY COURT REPORTER MERILYN SANCHEZ SAYS SHE HAS SEEN HEARINGIMPAIRED PEOPLE IN JUDGE STRAND'S COURTROOM BECOME EMOTIONAL TO THE POINT OF BEING TEARFUL ABOUT THE POSSIBILITY OF THE WORLD OPENING UP TO THEM REALTIME TECHNOLOGY ALSO ALLOWED RICHARD BROWN A JUDGE ON THE WISCONSIN STATE COURT OF APPEALS TO STAY ON THE BENCH WHEN HE LOST HIS HEARING JUDGE BROWN USES A FULLTIME COURT REPORTER TO INTERPRET FOR HIM USING A COMPUTER THE DAY IS COMING WHEN THERE WILL BE TRIAL JUDGES WHO ARE DEAF BUT WILL BE ABLE TO FUNCTION AND FUNCTION WELL WITH THE USE OF REAL TIME SAYS JUDGE BROWN THE SAME APPLIES TO PARTIES WITNESSES AND LAWYERS AND JURIES TOO PEOPLE WITH HEARING IMPAIRMENTS HAVE BEEN TOTALLY EXCLUDED FROM SERVING AS JURORS SAYS STEVEN SCHWARTZ DIRECTOR OF THE CENTER FOR PUBLIC REPRESENTATION IN NORTHAMPTON MA A PUBLIC INTEREST LAW FIRM FOR PEOPLE WITH DISABILITIES BUT THE AMERICANS WITH DISABILITIES ACT HAS PROMPTED INCREASED ATTENTION TO THE IMPORTANCE OF INCLUDING PEOPLE WITH HEARING DISABILITIES IN THE JUDICIAL PROCESS THE LAST MAJOR GROUP OF HOLDOUTS IN LITIGATION OVER THE BJORKSHILEY HEART VALVE SETTLED WITH PFIZER INC THE MANUFACTURER'S PARENT THE 254 PLAINTIFFS REPRESENTED BY THE LAW FIRM CAPRETZ & KASDAN IN IRVINE CALIF WERE AMONG ABOUT 800 PEOPLE WHO HAD REJECTED THE TERMS OF A CLASSACTION SETTLEMENT NEGOTIATED BY CINCINNATI PLAINTIFFS' LAWYER STANLEY CHESLEY FOR 51000 VALVE RECIPIENTS WORLDWIDE THE RECIPIENTS SOUGHT DAMAGES FOR EMOTIONAL DISTRESS BECAUSE THEY FEARED POSSIBLE FRACTURES IN THE VALVE THE NEW SETTLEMENT LEAVES ABOUT 29 PLAINTIFFS WITH FUNCTIONING VALVES WHO HAVE CLAIMS PENDING AGAINST NEW YORKBASED PFIZER SAID CHRIS HELLER A COMPANY SPOKESMAN TWO PLAINTIFFS IN THE CLASSACTION CASE HAVE APPEALED THE ROUGHLY 215 MILLION MASS SETTLEMENT THE COMPANY WOULDN'T RELEASE THE NUMBER OF SUITS PENDING OVER VALVES THAT HAVE FRACTURED AT LEAST 394 OF THE 85000 BJORKSHILEY VALVES IMPLANTED WORLDWIDE HAVE FRACTURED ABOUT TWOTHIRDS OF THOSE PATIENTS HAVE DIED TERMS OF THE NEW SETTLEMENT WEREN'T DISCLOSED BUT MR HELLER SAID THE PLAINTIFFS WILL RECEIVE MONETARY COMPENSATION HE CALLED IT EXTRAORDINARY THAT THE GROUP GOT DAMAGES BECAUSE THEIR VALVES ARE WORKING AS THEY WERE INTENDED TO WORK THE SETTLEMENT WAS REACHED WEDNESDAY THE NIGHT BEFORE A JURY WAS TO BEGIN DELIBERATING THE CASE OF ONE OF THE 254 PLAINTIFFS WE FEEL THAT THIS IS A FAIR AND SATISFACTORY SETTLEMENT SAID KENNETH KASDAN WHO REPRESENTED RUTH BARILLAS THE PLAINTIFF IN THE TRIAL THE VALVE SOLD BETWEEN 1979 AND 1986 HAS BEEN WITHDRAWN FROM THE MARKET WHO'S NEWS IRVIN B NATHAN A SENIOR LITIGATION PARTNER AT THE WASHINGTON LAW FIRM ARNOLD & PORTER JOINED THE JUSTICE DEPARTMENT AS PRINCIPAL ASSOCIATE DEPUTY ATTORNEY GENERAL ASSISTING DEPUTY ATTORNEY GENERAL PHILIP B HEYMANN FROM 1979 TO 1981 MR NATHAN 50 YEARS OLD WAS A DEPUTY ASSISTANT ATTORNEY GENERAL IN THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9309030031 930903 MARKETING & MEDIA BARNES & NOBLE'S STOCK OFFERING PLAN GETS BETTER RECEPTION THAN '92 ATTEMPT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOOKSTORE GIANT BARNES & NOBLE INC FILED A NEW PROPOSAL TO SELL ABOUT A THIRD OF THE COMPANY TO THE PUBLIC IN AN OFFERING THAT IS ALREADY GETTING A BETTER RECEPTION ON WALL STREET THAN LAST SUMMER'S ABORTIVE PLAN IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION BARNES & NOBLE SAID IT PLANS TO OFFER 82 MILLION SHARES OF COMMON STOCK FOR 16 TO 18 A SHARE THE OFFERING WOULD RAISE ABOUT 130 MILLION OF WHICH 70 MILLION WOULD BE USED TO CONTINUE THE RAPID EXPANSION OF ITS HUGE DISCOUNT BOOKSTORES AND FOR OTHER PURPOSES ABOUT 60 MILLION WOULD GO TOWARD REDEEMING A SERIES OF PREFERRED STOCK ISSUED TO RAISE MONEY LAST YEAR AFTER A PREVIOUS PLANNED OFFERING WAS CANCELED ASSUMING COMPLETION OF THE CURRENT OFFERING THE PUBLIC WOULD HOLD A 28 STAKE IN THE COMPANY WHICH WOULD STILL BE CONTROLLED BY ITS CURRENT OWNERS FEISTY ENTREPRENEUR LEONARD RIGGIO AND DUTCH COMPANY VENDEX INTERNATIONAL NV MR RIGGIO BARNES & NOBLE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND THE ENGINEER OF ITS GROWTH WOULD HOLD 30 OF THE COMPANY WHILE VENDEX WOULD HAVE ABOUT 37 THE REMAINING 5 WILL BE HELD BY PRINCES GATE INVESTORS LP AN INVESTMENT PARTNERSHIP MANAGED BY MORGAN STANLEY & CO THE PROSPECTUS FILED WITH THE SEC SHOWS A FASTGROWING COMPANY THAT WHILE STILL LOSING MONEY IS FAR HEALTHIER THAN IT WAS A YEAR AGO AND APPEARS BETTER POSITIONED FOR THE FUTURE THAN ANY OF ITS COMPETITORS THE FASTEST GROWING PART OF THE BOOKSTORE MARKET IS THE EXTRALARGE WELLSTOCKED STORES WITH AMENITIES LIKE COFFEE BARS BARNES & NOBLE OWNS ABOUT 170 SUCH SUPERSTORES COMPARED WITH ABOUT 35 EACH FOR THE OTHER BIG BOOK CHAINS KMART CORP'S BORDERS INC AND CROWN BOOKS CORP THEY HAVE MORE CRITICAL MASS IN SUPERSTORES AND THE NEW ISSUES MARKET IS RED HOT RIGHT NOW SAID ROBERT NATALE WHO DELIVERED AN AVOID RECOMMENDATION FOR STANDARD & POOR'S INSTITUTIONAL RESEARCH DEPARTMENT'S NEW ISSUES NEWSLETTER ON LAST YEAR'S PROPOSAL MR NATALE SAYS HE CAN'T PREDICT WHAT HIS RECOMMENDATION WILL BE THIS TIME BECAUSE HE HASN'T SEEN THE PROSPECTUS BUT HE SAID THEIR IPO COULD GET A BETTER RECEPTION THIS TIME GILBERT W HARRISON CHAIRMAN OF FINANCO INC A NEW YORK INVESTMENT BANKING FIRM SPECIALIZING IN RETAILING COMPANIES SAID AFTER A QUICK REVIEW OF BARNES & NOBLE'S FINANCIAL STATEMENT THE COMPANY'S PERFORMANCE HAS IMPROVED DRAMATICALLY IN THE LAST YEAR THEIR SALES TRENDS ARE EXCELLENT AND THEY CONTINUE TO BE THE LEADER IN THE IMPORTANT SUPERSTORE MARKET SAID MR RIGGIO THE CHAIRMAN OUR OBJECTIVE HAS BEEN TO BRING BOOKS INTO THE MAINSTREAM OF AMERICAN RETAILING THAT'S WHAT THE SUPERSTORES ARE ALL ABOUT AND BASED UPON THE NUMBERS WE SEE THE STRATEGY IS WORKING SEVERAL FINANCIAL STATISTICS THAT RAISED RED FLAGS WITH ANALYSTS A YEAR AGO HAVE SINCE IMPROVED S&P'S MR NATALE WAS CONCERNED THAT BARNES & NOBLE WAS ONLY DRAWING 21 OF ITS REVENUE FROM SUPERSTORES WITH THE REST COMING FROM ITS SLOWGROWING MALL BOOKSTORES INCLUDING THE B DALTON BOOKSELLER CHAIN IN THE SIX MONTHS ENDED JULY 31 BARNES & NOBLE SAID 43 OF THE COMPANY'S REVENUE CAME FROM SUPERSTORES MORE THAN DOUBLE THE PREVIOUS SHARE COMPARABLE STORE SALES ALSO SHOW IMPROVEMENT SALES OF BARNES & NOBLE SUPERSTORES ROSE NEARLY 14 IN THE FIRST SIX MONTHS COMPARED WITH A YEAR EARLIER THE COMPANY SAID A YEAR AGO COMPARABLE STORE SALES WERE UP ONLY 42 FOR SUPERSTORES IN THE FIRST SIX MONTHS OF THIS FISCAL YEAR BARNES & NOBLE LOST 139 MILLION ON REVENUE OF 560 MILLION BUT IN THE YEAREARLIER PERIOD THE COMPANY REGISTERED A BIGGER LOSS ON LOWER SALES A LOSS OF 169 MILLION ON REVENUE OF 437 MILLION THE NEW PLAN WOULD STILL LEAVE THE COMPANY HIGHLY LEVERAGED BUT LESS SO THAN UNDER LAST YEAR'S PROPOSAL ASSUMING COMPLETION OF THE OFFERING BARNES & NOBLE WILL BE LEFT WITH A RATIO OF DEBT TO SHAREHOLDER EQUITY OF ABOUT 072 TO 1 UNDER THE EARLIER PLAN THE RATIO WOULD HAVE BEEN ABOUT 085 TO 1 THE YEAREARLIER PROPOSAL WAS FOR ABOUT 79 MILLION SHARES FOR A MAXIMUM PRICE OF 17 A SHARE RAISING A MAXIMUM TOTAL OF ABOUT 134 MILLION AFTER ABORTING THE PLAN THE COMPANY RAISED ABOUT 100 MILLION FROM PRIVATE INVESTORS MORGAN STANLEY IS THE LEAD UNDERWRITER FOR THE OFFERING WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND PAINEWEBBER INC AS COMANAGERS 9309030030 930903 MARKETING & MEDIA EXPRESIDENT OF FOX NEWS IS HIRED BY QVC NETWORK NEW YORK STEPHEN CHAO THE FORMER FOX NEWS PRESIDENT WHO WAS FIRED FOR HIRING A MALE STRIPPER TO PERFORM AT A MANAGEMENT CONFERENCE WILL JOIN QVC NETWORK INC'S NEW Q2 NETWORK TO DEVELOP AND PRODUCE SHOWS MR CHAO AN AGGRESSIVE AND CREATIVE PROGRAMMER PLAYED A KEY ROLE IN DEVELOPING SUCH FOX SHOWS AS COPS AMERICA'S MOST WANTED AND STUDS BEFORE BEING FIRED LAST YEAR BY RUPERT MURDOCH CHAIRMAN OF FOX PARENT NEWS CORP NOW HE WILL REPORT TO HIS FORMER FOX BOSS QVC CHAIRMAN BARRY DILLER TO PRODUCE SHOWS AND SOURCE PRODUCTS WITH A DISTINCT CALIFORNIA POINT OF VIEW THE COMPANY SAID Q2 IS A LIFESTYLES SHOPPING CHANNEL SLATED FOR LAUNCH NEXT SPRING IN NAMING THE 37YEAROLD MR CHAO QVC HOPES TO BRING SOME FLAIR TO THE NEW SERVICE AND THE HOMESHOPPING INDUSTRY IN ADDITION TO THE NEW PRODUCER/MERCHANT ROLE MR CHAO WILL ALSO CONSULT IN THE OVERALL DEVELOPMENT OF Q2 CURRENTLY HE RUNS HIS OWN PRODUCTION COMPANY 9309030029 930903 RESORT DEAL LIFTS DEBENTURE OFFER WITH SKI PASS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU'RE LOOKING FOR A HEDGE AGAINST THE MOUNTAINOUS COST OF DOWNHILL SKIING AND WOULDN'T MIND EARNING 6 ANNUAL INTEREST IN THE PROCESS A QUEBEC SKI RESORT OPERATOR HAS A DEAL FOR YOU MONT SAINTSAUVEUR INTERNATIONAL INC OF MONTREAL IS SEEKING INVESTORS WILLING TO PUT UP A TOTAL OF 2 MILLION CANADIAN DOLLARS US15 MILLION TO HELP IT FINANCE EXPANSION PLANS IN RETURN THE INVESTOR GETS 10YEAR DEBENTURES PAYING INTEREST AT A RATE OF UP TO 6 ANNUALLY DEPENDING ON THE SERIES CHOSEN THE ICING ON THE CAKE A SEASON PASS FOR EACH OF THE NEXT 10 YEARS VALID AT ANY OF MONT SAINTSAUVEUR'S FOUR NORTH AMERICAN SKI RESORTS AND AT ONE IN FRANCE WHERE THE COMPANY HAS A TWINNING ARRANGEMENT BOND TRADERS SAY THAT WITHOUT THE ADDED BENEFIT THE SKI RESORT WOULD PROBABLY HAVE TO OFFER ANNUAL INTEREST OF 8 OR 9 GIVEN THAT 10YEAR CANADIAN GOVERNMENT BONDS TRADE TO YIELD ABOUT 67 THE COMPANY SAYS ITS CURRENT FINANCING COSTS RUN CLOSE TO 13 AND IT DOESN'T WANT TO ISSUE NEW STOCK THE SKI PASS IS A BONUS THAT MAKES FINANCIAL SENSE FOR THE COMPANY TRADERS SAY THIS GIVES SKIERS A WAY TO PROTECT THEMSELVES FROM THE RISING COST OF PASSES OVER THE NEXT 10 YEARS SAYS JACQUES HEBERT PRESIDENT AND CHIEF EXECUTIVE OF MONT SAINTSAUVEUR HE SAYS THAT CANADIAN SKIERS WHO LIKE THE COMPANY'S US RESORT JAY PEAK IN VERMONT CAN PROTECT THEMSELVES AGAINST THE FALLING VALUE OF THE CANADIAN DOLLAR AGAINST ITS US COUNTERPART WE FIGURE THE YIELD CAN GO UP TO 13 PER YEAR DEPENDING ON WHICH PASS YOU'D USUALLY BUY AND WHAT SERIES OF DEBENTURES YOU BUY MR HEBERT SAYS SEASON PASSES FOR THE MONT SAINTSAUVEUR RESORTS NOW SELL FOR C420 US317 TO C625 DEPENDING ON WHEN THEY ARE PURCHASED AND WHETHER THE PASSHOLDER IS SINGLE OR PART OF A FAMILY MEMBERSHIP MR HEBERT SAYS THE COMPANY IS ISSUING THE DEBENTURES ON ITS OWN SAVING UNDERWRITING FEES AND HOPES TO ATTRACT MOSTLY INDIVIDUAL INVESTORS THE SKI PASS IS TRANSFERABLE TO A FAMILY MEMBER OR UNDER CERTAIN CONDITIONS TO ANY OTHER INVESTOR THIS IS A GOOD DEAL FOR ANYBODY MR HEBERT DECLARES POINTING TO THREE DIFFERENT CLASSES OF DEBENTURES TO BE ISSUED SERIES F DEBENTURES CARRY AN INTEREST RATE OF 6 AND REQUIRE A MINIMUM INVESTMENT OF C10000 US7537 FOR A MINIMUM INVESTMENT OF C8000 INVESTORS GET A SERIES G DEBENTURE PAYING 4 ANNUALLY AND FOR C5000 THEY RECEIVE A ZEROCOUPON SERIES H DEBENTURE ALL COME COMPLETE WITH SKI PASS WE THINK THE C5000 INVESTMENT MIGHT APPEAL TO STUDENTS SAYS MR HEBERT HOPEFULLY CANADIANS CAN HOLD THE DEBENTURES IN THEIR TAXFREE RETIREMENT SAVINGS PLANS WHILE THE DEBT OFFERING ISN'T REGISTERED IN THE US MONT SAINTSAUVEUR OFFICIALS SAY THEY'RE HAPPY TO DO SOME DEALS WITH US INVESTORS ONE CAVEAT MONT SAINTSAUVEUR'S THREE CANADIAN RESORTS ARE LOCATED IN THE LAURENTIAN MOUNTAINS ONE OF CANADA'S MOST POPULAR SKI AREAS COMPETITION IN THE REGION IS FIERCE AND THE COMPANY'S EARNINGS HAVE DIPPED IN RECENT YEARS BUT MR HEBERT BELIEVES THE DEBENTURE ISSUE WILL NOT ONLY HELP FUND EXPANSION OPPORTUNITIES BUT ALSO GET MORE PAYING SKIERS ONTO THE HILLS THE PASSHOLDERS WILL BRING THEIR FAMILIES THEIR FRIENDS HE EXPLAINS THEY'LL EAT AND DRINK 9309030028 930903 WORKPLACE WORKFORCE STUDY FINDS LOYALTY IS WEAK DIVISIONS OF RACE AND GENDER ARE DEEP BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BROAD NEW SURVEY OF AMERICAN WORKERS DEPICTS A WORK FORCE THAT HAS LITTLE LOYALTY TO EMPLOYERS AND IS DEEPLY DIVIDED BY RACE AND GENDER THE STUDY THE MOST COMPREHENSIVE LOOK SO FAR AT EMPLOYEES' LIVES ALSO REFLECTS BROADERTHANEXPECTED CONFLICT BETWEEN WORK AND FAMILY LIFE IT SUGGESTS THAT WORKERS PLACE HIGH VALUE ON FLEXIBLE SCHEDULING ATTENTION TO PERSONAL NEEDS AND MANAGEMENT RECOGNITION FOR WORK WELL DONE AND THAT THEY ARE WILLING TO MAKE TRADEOFFS INCLUDING CHANGING JOBS TO GET THEM THE PRIVATELY FUNDED NATIONAL STUDY OF THE CHANGING WORKFORCE BY THE FAMILIES AND WORK INSTITUTE THE FIRST INSTALLMENT OF A PLANNED QUADRENNIAL SURVEY OF US WORKERS' ATTITUDES ABOUT THEIR WORK AND PERSONAL LIVES DWARFS SIMILAR EFFORTS SINCE A 1977 FEDERALLY FUNDED QUALITY OF EMPLOYMENT SURVEY THE INSTITUTE A NONPROFIT NEW YORK RESEARCH AND CONSULTING CONCERN HELD HOURLONG TELEPHONE INTERVIEWS WITH A NATIONALLY REPRESENTATIVE SAMPLE OF 2958 WAGE AND SALARIED WORKERS ON ISSUES RANGING FROM RELATIONSHIPS WITH THEIR BOSSES TO HOUSEHOLD CHORES THE RESULTS PAINT A PICTURE OF AMERICAN WORKERS LESS LOYAL TO EMPLOYERS THAN IN THE PAST THAT ISN'T SURPRISING 42 OF THOSE SURVEYED HAD BEEN THROUGH DOWNSIZING 28 HAD SEEN MANAGEMENT CUTBACKS AT THEIR COMPANIES AND NEARLY 20 SAID THEY FEAR BEING FIRED THE STUDY WAS FINANCED BY 15 COMPANIES AND FOUNDATIONS SALT RIVER PROJECT A PHOENIX UTILITY SEARS ROEBUCK & CO'S ALLSTATE INSURANCE UNIT AMERICAN EXPRESS CO AMERICAN TELEPHONE & TELEGRAPH CO COMMONWEALTH FUND DUPONT CO GENERAL MILLS FOUNDATION INTERNATIONAL BUSINESS MACHINES CORP JOHNSON & JOHNSON LEVI STRAUSS & CO MERCK & CO MOBIL CORP MOTOROLA INC THE ROCKEFELLER FOUNDATION AND XEROX CORP THE STUDY CHALLENGES THE NOTION THAT YOUNGER WORKERS ARE BETTER EQUIPPED TO COPE WITH A MORE DIVERSE WORKPLACE INSTEAD EMPLOYEES UNDER 25 SHOW NO GREATER PREFERENCE THAN OLDER EMPLOYEES FOR WORKING WITH PEOPLE OF OTHER RACES AGES OR ETHNIC GROUPS JUST OVER HALF OF SURVEYED WORKERS OF ALL AGES SAID THEY PREFER WORKING WITH PEOPLE OF THE SAME RACE SEX GENDER AND EDUCATION EMPLOYEES WHO HAD GREATER EXPERIENCE LIVING OR WORKING WITH PEOPLE OF OTHER RACES ETHNIC GROUPS AND AGES SHOWED A STRONGER PREFERENCE FOR DIVERSITY IN THE WORKPLACE BUT FEW EMPLOYEES HAVE SUCH EXPERIENCE THE STUDY SHOWS THAT EVEN WORKERS UNDER 25 HAD LITTLE CONTACT IN THE NEIGHBORHOODS WHERE THEY GREW UP WITH PEOPLE OF DIFFERENT ETHNIC AND CULTURAL BACKGROUNDS THE WORKPLACE IS THE MAIN SOCIAL ARENA FOR RACIAL AND ETHNIC INTERACTION THE STUDY SAYS PERHAPS EVEN MORE THAN SCHOOL IT IS THE FRONT LINE IN OUR NATION'S EFFORTS TO ASSIMILATE DIVERSE WORKERS AND IT'S UNLIKELY WE WILL SUCCEED UNLESS EMPLOYERS ASSUME STRONG LEADERSHIP THE STUDY ALSO REFLECTS WIDESPREAD PERCEPTIONS OF RACIAL AND SEXUAL DISCRIMINATION IN THE WORKPLACE ASKED TO RATE THEIR OWN CHANCES FOR ADVANCEMENT AGAINST THOSE OF MEMBERS OF OTHER RACIAL AND ETHNIC GROUPS EMPLOYEES OF ALL KINDS AGREED THAT MINORITY WORKERS' CHANCES WERE POORER THAN THOSE OF NONMINORITY WORKERS WHITE MEN AND WHITE WOMEN RATED MINORITIES' CHANCES OF ADVANCEMENT HIGHER THAN MINORITY WORKERS DID MINORITY MEN AND WOMEN AND WHITE WOMEN ALSO RATED WHITE MEN'S CHANCES OF ADVANCEMENT HIGHER THAN WHITE MEN DID THEMSELVES PERCEPTIONS OF DISCRIMINATION TAKE A HEAVY TOLL ON JOB PERFORMANCE THE STUDY SUGGESTS MORE THAN ONEFIFTH OF MINORITY WORKERS REPORTED THAT THEY HAD BEEN DISCRIMINATED AGAINST BY THEIR CURRENT EMPLOYERS THOSE BELIEFS CORRELATED WITH A HIGHER TENDENCY TO FEEL BURNED OUT A REDUCED WILLINGNESS TO TAKE INITIATIVE ON THE JOB AND A GREATER LIKELIHOOD OF PLANNING TO CHANGE JOBS THE STUDY SHOWED AND DESPITE A 20YEAR FLOOD OF WOMEN INTO THE WORK FORCE WOMEN MANAGERS SURVEYED WERE MORE THAN TWICE AS LIKELY AS MEN TO RATE THEIR CAREERADVANCEMENT OPPORTUNITIES AS POOR OR FAIR WITH 39 CHOOSING THOSE LABELS COMPARED WITH 16 OF MEN IN CONTRAST 84 OF MEN RATED THEIR PROMOTION CHANCES GOOD OR EXCELLENT COMPARED WITH 60 OF WOMEN WOMEN WHO SAID THEY SAW LITTLE OPPORTUNITY FOR CAREER ADVANCEMENT ALSO TENDED TO BE LESS LOYAL LESS COMMITTED AND LESS SATISFIED ON THE JOB THE SURVEY SHOWED THE STUDY EXPLODES SOME POPULAR STEREOTYPES ABOUT GENDER ROLES HOWEVER MOST WORKERS SURVEYED DIDN'T SEE MUCH DIFFERENCE IN THE WAY MEN AND WOMEN MANAGE FOR INSTANCE THOUGH WOMEN MANAGERS WERE VIEWED AS A LITTLE MORE SYMPATHETIC TO FAMILY OR PERSONAL PROBLEMS ON OTHER CRITERIA INCLUDING KEEPING WORKERS INFORMED OFFERING RECOGNITION AND SUPPORT AND BEING FAIR MEN AND WOMEN MANAGERS WERE RATED THE SAME DESPITE MYTHS TO THE CONTRARY THERE IS NO DIFFERENCE AS JUDGED BY WORKERS BETWEEN MEN AND WOMEN SUPERVISORS SAYS CHIP U'REN ASSOCIATE GENERAL MANAGER OF SALT RIVER PROJECT ONE OF THE SPONSORS OF THE STUDY THE FINDING SHOULD HELP COMPANIES FIND WAYS TO BREAK THROUGH THE GLASS CEILING HE SAYS THE SURVEY ALSO DISPUTES THE NOTION THAT AN EMERGING GENERATION OF 20SOMETHING MALES WILL HELP OUT THEIR EMPLOYED PARTNERS BY DOING MORE CHORES AT HOME MEN UNDER 25 AREN'T ANY MORE LIKELY TO HELP WITH COOKING CLEANING SHOPPING OR BILLPAYING THAN THEIR OLDER COUNTERPARTS THE STUDY SHOWS THE ONLY AREA IN WHICH YOUNGER MEN SURPASSED OLDER MEN WAS IN DOING REPAIRS AROUND THE HOUSE NOT UNEXPECTEDLY SURVEYED EMPLOYEES EXPRESSED GREATER COMMITMENT TO THEIR JOBS THAN TO THEIR EMPLOYERS WHILE 57 STRONGLY AGREED WITH THE STATEMENT I ALWAYS TRY TO DO MY JOB WELL NO MATTER WHAT IT TAKES ONLY 28 STRONGLY AGREED THAT THEY WERE WILLING TO WORK HARDER THAN I HAVE TO HELP MY EMPLOYER SUCCEED BUT EMPLOYEES ALSO SAID THEY PLACED HIGH VALUE ON THE QUALITY OF THEIR WORK ENVIRONMENT SUGGESTING THAT EFFORTS TO IMPROVE COMMUNICATION REDUCE WORKFAMILY CONFLICT AND CREATE A MORE SUPPORTIVE ENVIRONMENT MIGHT REKINDLE FLAGGING LOYALTY SURVEYED EMPLOYEES WHO HAD CHANGED JOBS IN THE PAST FIVE YEARS FOR INSTANCE SAID THEY RATED SUCH WORKPLACE CHARACTERISTICS AS OPEN COMMUNICATIONS MANAGEMENT QUALITY AND IMPACT ON FAMILY LIFE EVEN HIGHER THAN PAY IN CHOOSING AN EMPLOYER EMPLOYEES ALSO ASSIGNED GREAT IMPORTANCE TO BENEFITS THEY THOUGHT WOULD HELP THEM ACHEVE A BETTER BALANCE BETWEEN JOB AND PERSONAL LIFE ABOUT ONEQUARTER OF EMPLOYEES WITHOUT FLEXIBLE SCHEDULING OR THE RIGHT TO WORK AT HOME SAID THEY WOULD CHANGE JOBS TO GAIN THOSE OPPORTUNITIES 47 OF THOSE WHO LACKED THE RIGHT TO TIME OFF TO CARE FOR SICK FAMILY MEMBERS SAID THEY WOULD TAKE A CUT IN PAY OR BENEFITS TO GET IT SUCH NONTRADITIONAL BENEFITS ALSO CORRELATE WITH GREATER FEELINGS OF LOYALTY AND COMMITMENT TO HELPING THE EMPLOYER SUCCEED THE STUDY SHOWSTHOUGH TRADITIONAL BENEFITS SUCH AS HEALTH INSURANCE DON'T HAVE THE SAME IMPACT THE SURVEY REFLECTS SURPRISINGLY BROAD CONFLICT BETWEEN WORKERS' JOB AND FAMILY RESPONSIBILITIES NEARLY HALF OF THOSE SURVEYED HAVE RESPONSIBILITY FOR CARING FOR DEPENDENTS WHETHER ELDERLY OR DISABLED RELATIVES OR YOUNG CHILDREN AND 87 REPORTED HAVING AT LEAST SOME DAYTODAY FAMILY RESPONSIBILITIES AT HOME SUGGESTING THAT WORKFAMILY POLICIES SUCH AS FLEXIBLE SCHEDULING AND DEPENDENTCARE HELP SHOULDN'T BE VIEWED AS SPECIAL ASSISTANCE FOR A SMALL GROUP OF WORKERS BUT AS GENERAL ASSISTANCE FOR VIRTUALLY ALL EMPLOYEES THE STUDY SAYS THE RESULTS MAKE YOU CATCH YOUR BREATH SAYS FAITH WOHL DIRECTOR OF HUMAN RESOURCE INITIATIVES FOR DUPONT ANOTHER SPONSOR OF THE STUDY THE RESULTS SUGGEST WORKFAMILY PROGRAMS SHOULD BE BROADENED AND INTEGRATED WITH QUALITYIMPROVEMENT EFFORTS SHE SAYS ULTIMATELY WHAT MAKES YOUR COMPANY FAMILYFRIENDLY IS TO BE WORKERFRIENDLY SHE SAYS WHEN WORK AND FAMILY CLASH A WORKER'S FAMILY IS MORE THAN THREE TIMES MORE LIKELY TO SUFFER THAN HIS OR HER JOB PERFORMANCE THE STUDY SHOWS WHEN PROBLEMS ERUPT AT WORK EMPLOYEES REPORTED THAT THEY WERE FAR MORE LIKELY TO GIVE UP TIME WITH THEIR FAMILIES LEAVE HOUSEWORK UNDONE OR EXPERIENCE BAD MOODS THAN TO REFUSE OVERTIME OR BUSINESS TRAVEL CUT THEIR OUTPUT OR QUARREL WITH THEIR BOSSES TWOTHIRDS OF SURVEYED EMPLOYEES WITH CHILDREN SAID THEY LACK ADEQUATE TIME WITH THEM ESPECIALLY FOR WORKERS WITH CHILDREN THE PICTURE IS OF INDIVIDUALS IN GRIDLOCK SAYS DANA FRIEDMAN COPRESIDENT OF THE INSTITUTE PEOPLE FEEL STRONGLY ABOUT DOING A GOOD JOB AT WORK THEY ALSO YEARN TO SPEND MORE TIME WITH THEIR FAMILIES BUT ARRIVE HOME EXHAUSTED 9309030027 930903 INTERNATIONAL JAPANESE BUSINESS GROUP REDUCES ITS POLITICAL ROLE TOKYO AP JAPAN'S MOST POWERFUL CORPORATE GROUP SHOWING SUPPORT FOR REFORMS URGED BY THE NEW GOVERNMENT SAID IT WILL STOP COORDINATING POLITICAL DONATIONS BY ITS MEMBER COMPANIES GAIISHI HIRAIWA CHAIRMAN OF THE FEDERATION OF ECONOMIC ORGANIZATIONS OR KEIDANREN SAID THE GROUP BEGINNING IN APRIL WILL STOP COORDINATING AND DISTRIBUTING DONATIONS OFFICIALS SAID IT ANNUALLY POOLED AND DISTRIBUTED ABOUT 13 BILLION YEN 1234 MILLION THE MOVE WAS A VOTE OF SUPPORT FOR CALLS BY PRIME MINISTER MORIHIRO HOSOKAWA'S COALITION GOVERNMENT FOR RESTRICTIONS ON CORPORATE POLITICAL DONATIONS KEIDANREN LONG HAS ACTED AS A HANDLER OF LARGE CORPORATE GIFTS TO POLITICAL PARTIES IT WAS ONE OF THE MAIN SOURCES OF SUPPORT FOR THE LIBERAL DEMOCRATIC PARTY DURING ITS 38YEAR RULE WHICH ENDED IN JUNE 18 GENERAL ELECTIONS THE LOSS WAS ATTRIBUTED LARGELY TO PUBLIC DISGUST WITH A SERIES OF BRIBERY SCANDALS THE PRESIDENT OF THE LIBERAL DEMOCRATS YOHEI KONO IN A STATEMENT YESTERDAY DEFENDED DONATIONS BY CORPORATE GROUPS CALLING THEM PART OF THE PARTICIPATION IN POLITICS THAT COMES WITH HAVING AN IMPORTANT ROLE IN SOCIETY 9309030026 930903 WHAT'S NEWS BUSINESS AND FINANCE TOYOTA RAISED 1994MODEL CAR PRICES IN THE US BETWEEN 25 FOR ITS CHEAPEST VEHICLES AND 127 FOR MORE EXPENSIVE CARS REFLECTING THE EFFECTS OF THE STRONG YEN THE JAPANESE CAR MAKER APPARENTLY HEEDED THREATS FROM US AUTO MAKERS THAT IF PRICES DIDN'T GO UP SUBSTANTIALLY THE BIG THREE WOULD BRING DUMPING CHARGES FACTORY ORDERS PLUNGED 21 IN JULY THE STEEPEST DECLINE SINCE DECEMBER 1991 RAISING MORE CONCERNS ABOUT THE STRENGTH OF THE MANUFACTURING SECTOR ORDERS ROSE 29 IN JUNE BIG US RETAILERS REPORTED LACKLUSTER AUGUST SALES AS THE COMBINATION OF CONSUMER UNCERTAINTY HOT WEATHER AND FULLPRICED FALL APPAREL KEPT SHOPPERS AWAY FROM THE NATION'S MALLS US WORKERS HAVE LITTLE LOYALTY TO EMPLOYERS AND ARE DEEPLY DIVIDED BY RACE AND GENDER A SURVEY FOUND THE STUDY THE MOST COMPREHENSIVE LOOK SO FAR AT EMPLOYEES' LIVES ALSO INDICATES BROADERTHANEXPECTED CONFLICT BETWEEN WORK AND FAMILY LIFE BOND PRICES RALLIED WHILE STOCKS ENDED MIXED THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE MORE THAN 5/8 POINT ITS YIELD FELL TO 604 THE LOWEST LEVEL IN 16 YEARS THE DOW INDUSTRIALS SANK 1900 TO 362610 RJR NABISCO SAID A TOBACCO PRICE WAR WILL COST IT A LARGERTHANEXPECTED 900 MILLION IN OPERATING PROFIT THIS YEAR PROMPTING ANALYSTS TO SAY RJR ISN'T CUTTING EXPENSES FAST ENOUGH DR PEPPER/SEVENUP ADOPTED AN ANTITAKEOVER PLAN THAT WOULD GIVE ALL SHAREHOLDERS EXCEPT CADBURY SCHWEPPES THE RIGHT TO BUY STOCK AT A DISCOUNT IF CADBURY RAISES ITS STAKE INTUIT AGREED TO ACQUIRE CHIPSOFT IN A 2329 MILLION STOCK SWAP CREATING A POWERFUL NEW FORCE IN THE FASTGROWING PERSONALFINANCE SOFTWARE BUSINESS INTUIT'S SHARE PRICE DECLINED 125 CENTS TO 32125 WHILE CHIPSOFT'S STOCK TUMBLED 150 OR 98 TO 1375 BROWNINGFERRIS AGREED TO ACQUIRE WESTERN WASTE INDUSTRIES FOR STOCK VALUED AT ABOUT 411 MILLION A MOVE SEEN AS A LIKELY HERALD OF A NEW PHASE IN THE WASTE INDUSTRY'S CONSOLIDATION WESTERN'S STOCK ROSE 18 TO 20 BUT BROWNING'S FELL 5 TO 23625 AMID SPECULATION IT WILL PAY TOO MUCH GENENTECH SAID ITS FLAGSHIP DRUG ACTIVASE HAS RECAPTURED ITS 66 SHARE OF THE MARKET FOR CLOTBUSTING DRUGS MONTHS AFTER A STUDY SHOWED A SLIGHTLY LOWER DEATH RATE FOR USERS OF ACTIVASE THAN FOR USERS OF RIVAL DRUGS US AND GERMAN NEGOTIATORS AGREED TO A THREEYEAR FREEZE ON THE RIGHTS OF US AIRLINES TO SERVE GERMANY PEOPLE CLOSE TO THE TALKS SAID LEE IACOCCA RESIGNED AS A CHRYSLER DIRECTOR SAYING HE IS EAGER TO START DOING SOMETHING DIFFERENT WITH HIS LIFE BONDS LEHMAN BROTHERS TREASURY INDEX 560948 UP 2569 COMMODITIES OIL 1797 A BARREL UNCHANGED DOW JONES FUTURES INDEX 12604 UP 047 SPOT INDEX 12260 OFF 019 DOLLAR 10585 YEN UP 055 16440 MARKS OFF 00153 9309030025 930903 OSHA NOMINEE SEES ROLE AMID DEVELOPING STRATEGY WASHINGTON THE NOMINEE TO HEAD THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION BELIEVES A WHITE HOUSE PLAN TO LET COMPANIES POLICE THEIR OWN SAFETY AND HEALTH PERFORMANCE SHOULD SUPPLEMENT OSHA INSPECTIONS RATHER THAN REPLACE THEM PEOPLE FAMILIAR WITH THE THINKING OF JOSEPH DEAR WHO IS AWAITING CONFIRMATION AS OSHA CHIEF SAY HE VIEWS A PROPOSAL DISCLOSED IN A DRAFT OF VICE PRESIDENT GORE'S REINVENTING GOVERNMENT PROGRAM AS PART OF A BROADER OSHA STRATEGY TO GET MORE SELFINSPECTION IN THE WORKPLACE RATHER THAN USE OSHA INSPECTORS TO REVIEW WORKPLACES THE GOVERNMENT WOULD LET COMPANIES HIRE THIRDPARTY AUDITORS TO DO INSPECTIONS OR TRAIN EMPLOYEES TO HANDLE THEM OSHA WOULD SET INSPECTION AND REPORTING STANDARDS AND CONDUCT RANDOM REVIEWS AUDITS AND INSPECTIONS TO ASSURE QUALITY MR DEAR DIDN'T RETURN CALLS FOR COMMENT BUT HE TOLD PEOPLE YESTERDAY THAT HE SEES THE AUDITORS AND EMPLOYEE INSPECTORS AS ADDITIONAL REVIEWERS RATHER THAN SUBSTITUTES FOR OSHA INSPECTIONS IT'S UNCLEAR HOW THAT PLAN WOULD CHANGE WHAT COMPANIES DO NOW SINCE CORPORATIONS CURRENTLY ARE PERMITTED TO HIRE OUTSIDERS OR KEEP SAFETY EXPERTS ON STAFF TO MAINTAIN SAFETY STANDARDS 9309030024 930903 LTV HOLDERS NAME CHICAGO EXCHANGE IN FRAUD LAWSUIT BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE CHICAGO STOCK EXCHANGE AND A SMALL CHICAGO SECURITIES FIRM HAVE BEEN ACCUSED OF FRAUD BY TWO LTV CORP SHAREHOLDERS WHO CLAIM THEY WERE VICTIMIZED BY AN INTRICATE SHORTSELLING STRATEGY THE FEDERAL SUIT WHICH SEEKS CLASSACTION STATUS NAMES AS DEFENDANTS SCATTERED CORP PLUS THE CHICAGO EXCHANGE AND ITS MIDWEST CLEARING CORP UNIT WHICH PROCESSES THE MARKET'S SECURITIES TRANSACTIONS THE SUIT ALLEGES THAT SCATTERED DEFRAUDED INVESTORS AND TURNED A 27 MILLION PROFIT EARLIER THIS YEAR BY SELLING SHORT 170 MILLION LTV SHARES WELL ABOVE THE STEEL COMPANY'S 121 MILLION SHARES OUTSTANDING AT THAT TIME SHORT SELLERS WAGER ON A STOCK'S FALL BY BORROWING SHARES AND SELLING THEM BETTING THEY CAN REPLACE THEM LATER AT A LOWER PRICE THE MARKET MANIPULATION BY SCATTERED WAS ENGINEERED TO EXPLOIT ITS POSITION AS A MARKET MAKER AT THE CHICAGO EXCHANGE THE SUIT ALLEGES MARKET MAKERS UNLIKE MOST SHORTSELLERS AREN'T REQUIRED TO BORROW OR OTHERWISE ACQUIRE THE SHARES FOR DELIVERY WITHIN THE NORMAL FIVEDAY SETTLEMENT PERIOD THAT EXEMPTION IS GRANTED SO THEY CAN ADEQUATELY PERFORM THEIR FIDUCIARY DUTIES OF MAINTAINING ORDERLY AND LIQUID MARKETS BY PURPOSELY DELAYING DELIVERY SCATTERED TOOK ADVANTAGE OF THE STEEL GIANT'S JUNE 28 EMERGENCE FROM BANKRUPTCYCOURT REORGANIZATION PROCEEDINGS UNDER WHICH WARRANTS FOR THE OLD STOCK WERE TO BE EXCHANGED AT PRICES VALUED AT THREE CENTS TO FOUR CENTS A SHARE THE SUIT SAYS THE PLAINTIFFS MARK V HARKINS OF LASALLE ILL AND CAROLE BLAND OF DEERFIELD ILL BOUGHT 1000 LTV SHARES ON JUNE 2 AND 4000 SHARES ON JUNE 25 RESPECTIVELY THE SUIT SAYS LTV STOCK TRADED AT 10 CENTS TO 50 CENTS A SHARE THIS SPRING EVEN THOUGH THE COMPANY PUBLICLY ANNOUNCED THAT ITS SHARES WOULD BE ALMOST WORTHLESS ONCE ITS CHAPTER 11 BANKRUPTCYCOURT PLAN WAS CONFIRMED THE SUIT ALLEGES THAT THE CHICAGO EXCHANGE KNEW OR SHOULD HAVE KNOWN ABOUT SCATTERED'S STRATEGY BUT FAILED TO STOP THE PRACTICE UNTIL IT HAD REACHED A POINT AT WHICH THE EXCHANGE CHOSE INSTEAD TO WAIVE STRICT ENFORCEMENT OF THE RULES OF THE EXCHANGE AND THE SECURITIES AND EXCHANGE COMMISSION IN ORDER TO PREVENT THEMSELVES AND SCATTERED FROM SUFFERING THE RESULTS OF HAVING TO ACQUIRE SHARES FOR DELIVERY OF THE SHORT SALES A SPOKESWOMAN FOR THE CHICAGO EXCHANGE SAID THE EXCHANGE HASN'T SEEN A COPY OF THE SUIT AND THEREFORE COULDN'T COMMENT LEON A GREENBLATT A PRINCIPAL WITH SCATTERED DENIED ANY WRONGDOING SAYING HE SIMPLY FOLLOWED THE RULES SCATTERED ALSO IS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION AND THE CHICAGO EXCHANGE THE COMPANY ALSO IS BEING SUED IN US DISTRICT COURT BY SULLIVAN & LONG INC A CHICAGO FIRM THAT ALLEGES SECURITIES LAW VIOLATIONS FRAUD BREACH OF CONTRACT AND CIVIL VIOLATIONS OF THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW OR RICO NEWS OF THE SUIT WAS FIRST REPORTED IN TODAY'S EDITIONS OF THE CHICAGO TRIBUNE 9309030023 930903 ECONOMY CLINTON PLANS SYSTEM TO SPOT PROFITEERS' IN HEALTH INDUSTRY AS WAY TO CURB COSTS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PLANNING TO DEVELOP AN INFORMATIONGATHERING SYSTEM TO SPOT PROFITEERS IN THE HEALTH INDUSTRY FOR THE PAST FEW MONTHS OFFICIALS HAVE SAID THAT MR CLINTON HAD DECIDED THAT HIS HEALTHCARE PROPOSAL WON'T INCLUDE RIGID PRICE CONTROLS AKIN TO THOSE IMPOSED BY PRESIDENT NIXON IN THE 1970S AND THE WHITE HOUSE RELEASED A STATEMENT YESTERDAY REITERATING THAT POSITION BUT AIDES SAID THE PRESIDENT IS NOW LEANING AGAINST ANOTHER WIDELY DISCUSSED IDEA VOLUNTARY PRICERESTRAINT AGREEMENTS WITH INDUSTRY THAT WOULD BE BACKED UP WITH FEDERAL ENFORCEMENT IF INDUSTRY DIDN'T LIVE UP TO ITS END OF THE BARGAIN THE PRESIDENT'S CURRENT STANCE WAS REPORTED YESTERDAY BY THE WASHINGTON POST INSTEAD SAID WHITE HOUSE SPOKESMAN KEVIN ANDERSON WE'RE GOING TO BE LOOKING FOR PROFITEERING IT WASN'T CLEAR WHO WOULD RUN THE SYSTEM AND WHAT THE FEDERAL GOVERNMENT WOULD DO WITH THE INFORMATION BUT SOME OFFICIALS SUGGESTED THAT IT COULD BE USED TO EMBARRASS OR JAWBONE DRUG COMPANIES MEDICALEQUIPMENT MANUFACTURERS AND OTHERS IN THE HEALTH INDUSTRY TO HOLD DOWN THEIR PRICES MR CLINTON YESTERDAY HELD HIS THIRD MEETING IN THREE DAYS TO RESOLVE FINANCING ISSUES SURROUNDING THE HEALTH PLAN WHICH PROMISES TO GUARANTEE HEALTH COVERAGE TO ALL CITIZENS AND LEGAL RESIDENTS OF THE US A FOURTH MEETING HAS BEEN SCHEDULED TODAY AND OFFICIALS EXPECT TO SPEND THE WEEKEND FINISHING A 400PAGE DRAFT SUMMARY OF THE PLAN WHICH WILL BE DISTRIBUTED TO MEMBERS OF CONGRESS NEXT WEEK THEN AFTER CONSULTATIONS WITH DEMOCRATIC AND REPUBLICAN MEMBERS MR CLINTON MAY MODIFY THE HEALTH PLAN BEFORE UNVEILING IT TO THE PUBLIC LATER THIS MONTH AIDES SAID A WHITE HOUSE STATEMENT YESTERDAY CONFIRMED THAT THE PRESIDENT IS LIKELY TO PROPOSE A TAX ON CIGARETTES TO HELP PAY FOR THE HEALTH PLAN IN THE STATEMENT THE WHITE HOUSE ALSO SAID THAT ALL STATES WILL BE REQUIRED TO HAVE NEW HEALTH SYSTEMS UP AND RUNNING BY DECEMBER 1997 MEANING THAT THEY WILL HAVE TO SET UP HEALTH ALLIANCES UNDER THE CLINTON PLAN EMPLOYERS AND INDIVIDUALS WOULD CONTRIBUTE MONEY TO THOSE ALLIANCES AND CHOOSE A HEALTH PLAN THE GOVERNMENT WOULD SUBSIDIZE THE PREMIUMS OF POOR PEOPLE AND SMALL LOWWAGE BUSINESSES HOWEVER OFFICIALS SAID THE DEADLINE FOR PHASING IN THE PLAN'S REQUIREMENT THAT ALL EMPLOYERS CONTRIBUTE TO THEIR EMPLOYEES' HEALTH INSURANCE MAY TAKE LONGER IN A SPEECH TO THE NATIONAL GOVERNOR'S ASSOCIATION LAST MONTH MR CLINTON SAID THAT SMALL BUSINESSES WOULD HAVE A LONG PHASEIN PERIOD BEFORE THEY WOULD HAVE TO MEET THE MANDATE SPEAKING TO REPORTERS AFTER THE ADDRESS IRA MAGAZINER THE WHITE HOUSE AIDE OVERSEEING THE HEALTH EFFORT SAID THE PHASEIN PERIOD WOULD PROBABLY BE FIVE TO SEVEN YEARS DURING THE THREE DAYS OF DEBATE ON FINANCING THE PLAN OFFICIALS SAY THERE HAS BEEN NO SERIOUS DISCUSSION ON CUTTING BACK THE BENEFITS PACKAGE THAT WOULD BE GUARANTEED TO ALL AMERICANS IT WILL INCLUDE COVERAGE OF HOSPITALIZATION PREVENTIVE CARE EMERGENCY SERVICES AND SOME MENTALHEALTH BENEFITS AND CHILDREN'S DENTAL BENEFITS COST CONCERNS FORCED OFFICIALS SOME TIME AGO TO LIMIT MENTALHEALTH AND DENTAL BENEFITS THOUGH THE PRESIDENT HAS VEERED AWAY FROM EXPLICIT GOVERNMENT RATESETTING HIS HEALTH PLAN WILL STILL CONTAIN SOME COST CONTROLS OFFICIALS SAID THE PRESIDENT PLANS TO IMPOSE CAPS ON THE ALLOWABLE RATE OF INCREASE IN HEALTH INSURANCE PREMIUMS AS WELL AS CAP THE RATE OF GROWTH IN MEDICARE AND MEDICAID THE PUBLIC HEALTH PROGRAMS FOR ELDERLY DISABLED AND POOR PEOPLE ADMINISTRATION OFFICIALS HAVE ESSENTIALLY SETTLED ON LIMITS TO EMPLOYEE AND EMPLOYER CONTRIBUTIONS AIDES SAID EMPLOYERS WILL BE REQUIRED TO PAY UP TO 80 OF THE AVERAGE WEIGHTED PREMIUM OF A STANDARD HEALTH PLAN IN AN AREA BUT NO MORE THAN 32 OF PAYROLL FOR SMALL LOWWAGE BUSINESSES AND NO MORE THAN 76 OF PAYROLL FOR LARGE COMPANIES INDIVIDUALS WOULD PAY THE REMAINING 20 OF THE HEALTH PLAN BUT NO MORE THAN 19 OF THEIR WAGES 9309030022 930903 WORLD INDEX IS RECALCULATED NEW YORK SEVERAL DATA ERRORS WERE CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE LARGEST CHANGES APPEAR IN SEVERAL EUROPEAN INDUSTRY GROUPS INCLUDING TRUCKING SOFTWARE HEAVY MACHINERY AND INDUSTRIAL TECHNOLOGY THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED WEDNESDAY IN US DOLLAR TERMS AT 11339 RATHER THAN 11275 AS ORIGINALLY REPORTED THE ERRORS WERE CAUSED MAINLY BY ISOLATED MISAPPLICATIONS OF STOCKPRICING AND CORPORATE ACTION DATA ITEMS WHICH INCLUDE SUCH MATTERS AS STOCK SPLITS AND MERGERS AND MISCLASSIFYING SOME COMPANIES BY INDUSTRY 9309030021 930903 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EQUICREDIT CORP AN OFFERING OF TWO MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND ALEX BROWN & SONS INC KENDALL INTERNATIONAL INC AN OFFERING OF 2923563 COMMON SHARES VIA MERRILL LYNCH & CO GOLDMAN SACHS & CO AND KIDDER PEABODY & CO LUBRIZOL CORP A SHELF OFFERING OF UP TO 100 MILLION OF DEBT SECURITIES VIA MORGAN STANLEY & CO INC SALOMON BROTHERS MORTGAGE SECURITIES VII INC A UNIT OF SALOMON BROTHERS INC A SHELF OFFERING OF UP TO 263 BILLION OF MORTGAGE PASSTHROUGH CERTIFICATES TO BE ISSUED IN SERIES VIA SALOMON BROTHERS INC STARBASE CORP AN OFFERING OF UP TO 15 MILLION OF ITS COMMON SHARES 9309030020 930903 CREDIT MARKETS TREASURY BOND PRICES RISE SHARPLY AS ESTIMATES OF AUGUST EMPLOYMENT GAINS TURN CAUTIOUS BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFRAID OF BEING LEFT AT THE STATION TRADERS AND INVESTORS LEAPT BACK ABOARD THE TREASURY MARKET EXPRESS YESTERDAY AND PUSHED BOND PRICES HIGHER AFTER SEVERAL DAYS OF LACKLUSTER TRADING THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 5/8 POINT OR MORE THEN 625 FOR A BOND WITH 1000 FACE VALUE TO 102 28/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO A 16YEAR LOW OF 604 FROM 609 ON WEDNESDAY BEFORE 1977 THE TREASURY DID NOT HAVE REGULAR AUCTIONS OF THE 30YEAR BOND THE 10YEAR NOTE ROSE 3/8 POINT TO 102 20/32 TO YIELD 540 THE LOWEST SINCE MARCH 1971 SOME OF THE BUYING WAS ATTRIBUTED TO JITTERS AHEAD OF TODAY'S AUGUST EMPLOYMENT REPORT FORECASTS CALL FOR A MODERATE INCREASE OF ABOUT 150000 IN NONFARM PAYROLL EMPLOYMENT FROM JULY BUT THERE WAS WIDESPREAD TALK YESTERDAY THAT ANALYSTS ARE LOWERING THEIR ESTIMATES OF THE INCREASE BOND TRADERS SAID THAT IF THE DATA COME IN WEAKER THAN EXPECTED INVESTORS CAN EXPECT TO SEE THE 30YEAR BOND YIELD DROP BELOW 6 THERE WERE SOME PEOPLE WORRIED ABOUT THE NUMBER COMING IN BELOW 100000 AND HAVING TO CHASE THE MARKET AS YIELDS DROP FURTHER SAID MATTHEW ALEXY MARKET STRATEGIST AT FIRST BOSTON CORP TRADERS AND ANALYSTS SAID THAT EVEN IF THE JOBS DATA SHOW BETTER GROWTH THAN EXPECTED THE BOND MARKET RALLY IS UNLIKELY TO EXPERIENCE MUCH MORE THAN A PAUSE I THINK THE FORCES AT WORK GO BEYOND THE EMPLOYMENT NUMBER SAID ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS & CO YOU NEED A SERIES OF STRONG NUMBERS TO ACTUALLY SIGNAL AN END TO THIS ADDING TO THE UPWARD PRESSURE ON PRICES DEALERS HAVE NOT BEEN MAINTAINING LARGE INVENTORIES OF SECURITIES BECAUSE THEY ARE NERVOUS ABOUT THE LOFTY PRICES AS A RESULT WHEN RETAIL ACCOUNTS BUY BONDS TRADERS HAVE TO TURN TO THE MARKET FOR THOSE SECURITIES PUSHING PRICES EVEN HIGHER DEALERS ARE FLAT AND WHEN A CUSTOMER COMES IN AND BUYS FROM THEM THEY DON'T HAVE A CHOICE BUT TO GO INTO THE MARKET AND BUY MORE SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES INTERNATIONAL INC THE SAME FACTORS THAT HAVE BEEN DRIVING YIELDS LOWER THROUGHOUT THE SUMMER WERE AT WORK YESTERDAY MARKET PARTICIPANTS SAID ON ONE HAND THE ECONOMY SHOWS LITTLE DANGER OF OVERHEATING YOU CAN'T IGNORE THE ECONOMIC FUNDAMENTALS SAID JEFF KOCH A PORTFOLIO MANAGER AT STRONG FUNDS THE INFLATION NEWS HAS BEEN VERY GOOD SINCE THE FIRSTQUARTER SCARE AND ALTHOUGH THE ECONOMY CONTINUES TO EXPAND IT IS LIKELY TO GROW ONLY SLUGGISHLY HE SAID BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS THAT HAVE A FIXED RATE OF RETURN MEANWHILE THE SUPPLY AND DEMAND FACTORS STILL WORK STRONGLY IN FAVOR OF LOWER YIELDS MARKET WATCHERS SAID ONE MAJOR DRIVING FORCE ON THAT FRONT HAS BEEN THE FLOOD OF CASH INTO BOND MUTUAL FUNDS ACCORDING TO MR GIORDANO OF GOLDMAN AS LONG AS SHORTTERM INTEREST RATES REMAIN LOW THAT FLOOD WILL CONTINUE THE LONGER SHORTTERM RATES REMAIN LOW THE MORE INCENTIVE PEOPLE HAVE TO SHIFT OUT OF LOWYIELDING ALTERNATIVES HE SAID IN THE CASE OF INDIVIDUALS THEY WILL CONTINUE TO TAKE MONEY OUT OF BANK DEPOSITS AND MOVE IT INTO MUTUAL FUNDS AT THE SAME TIME MUNICIPALITIES ARE STILL SNAPPING UP INTERMEDIATE TREASURYS AS THEY REFUND OLDER DEBT THAT IS NOT YET CALLABLE SINCE THE DEBT IS NOT YET CALLABLE THESE MUNICIPALITIES MUST INVEST PROCEEDS OF NEW BOND OFFERINGS IN TREASURYS UNTIL THE CALL DATES ARRIVE AS HAS BEEN THE CASE SEVERAL TIMES IN RECENT WEEKS THE FEDERAL RESERVE WAS SAID TO BE CONDUCTING UNANNOUNCED PURCHASES OF NOTES ON BEHALF OF CUSTOMERS YESTERDAY THIS ALSO HELPED TO BOOST PRICES WE HAVEN'T SEEN ANY OBVIOUS SIGNS THAT WE'RE ABOUT TO PUT IN A TOP AND AS FAR AS THE FUNDAMENTAL BACKDROP IS FAVORABLE ANY SETBACK THAT WE GET IN THE MARKET IS LIKELY TO BE SHORTLIVED SAID MR KOCH YESTERDAY'S ECONOMIC DATA DID LITTLE TO ALTER THE BULLISH LANDSCAPE TRADERS LARGELY IGNORED A REPORT THAT INITIAL UNEMPLOYMENT LAIMS DROPPED 7000 TO 324000 LAST WEEK MEANWHILE THE PUBLIC SECURITIES ASSOCIATION HAS RECOMMENDED AN EARLY 1 PM EDT CLOSE OF THE GOVERNMENT SECURITIES MARKET TODAY IN ADVANCE OF THE LABOR DAY HOLIDAY MOST OTHER BOND MARKETS WILL FOLLOW SUIT AND REGULAR TRADING WILL RESUME ON TUESDAY LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M2 MEASURE OF MONEY SUPPLY DROPPED 16 BILLION IN THE WEEK ENDED AUG 25 THAT PUTS THE M2 GROWTH RATE AT 12 FROM THE 1992 FOURTH QUARTER AT THE LOW END OF THE FED'S TARGET OF 1 TO 5 GROWTH M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 CORPORATIONS PASSED UP AN OPPORTUNITY TO TAKE ADVANTAGE OF DECLINING INTEREST RATES YESTERDAY MAKING FOR A QUIET DAY IN THE NEWISSUE MARKET ONLY ONE AVCO FINANCIAL SERVICES INC CAME TO MARKET BRINGING A 200 MILLION OFFERING IN ADDITION THE FEDERAL HOME LOAN BANK SYSTEM TAPPED THE MARKET TWICE RECEIVING VERY AGGRESSIVE RATES AND FEDERAL HOME LOAN MORTGAGE CORP ISSUED 100 MILLION OF DEBT LATE IN THE DAY SECONDARY TRADING WAS VERY QUIET IN BOTH THE JUNK AND THE INVESTMENTGRADE MARKETS IF YOU WERE HALF STAFFED YOU WERE OVERSTAFFED CLAIMED ONE TRADER IN THE INVESTMENTGRADE MARKET SPREADS BETWEEN CORPORATE AND TREASURY YIELDS WIDENED BY 002 TO 005 PERCENTAGE POINT FOR TRIPLEBRATED SECURITIES RECENT WEAKNESS IN THE JUNKBOND MARKET RELATED TO OVERSUPPLY SEEMS TO BE SPREADING TO LOWERRATED INVESTMENTGRADE BONDS TRADERS SAID MEANWHILE THE JUNK BOND MARKET TRADED DOWN ACROSS THE BOARD BY ALMOST A POINT IN LIGHT TRADING JUNK BOND PRICES HAVE BEEN DROPPING STEADILY IN RECENT WEEKS AS MORE INVESTORS BALK AT SMALLER AND RISKIER NEW OFFERINGS AND A FLOOD OF SUPPLY ALLOWS THEM TO BE MORE SELECTIVE MUNICIPALBOND PRICES WRAPPED UP YESTERDAY'S SESSION WITH GAINS OF 1/8 TO 1/2 POINT MOSTLY REFLECTING THE PRICE ACTION IN THE TREASURY BOND MARKET OTHER FACTORS ALSO SUPPORTED TAXEXEMPT ISSUES THERE APPEARS TO BE SOME PENTUP MONEY IN THE MUNI MARKET AFTER A LULL IN BUYING A NEW YORK TRADER SAID MUNIS SURGED LAST MONTH AFTER INCOME TAX INCREASES WERE ENACTED BUT THERE WASN'T MUCH BUYING IN THE PAST FEW DAYS IN TRADING YESTERDAY THE REGIONAL AIRPORT AUTHORITY OF LOUISVILLE & JEFFERSON COUNTY KENTUCKY'S 550 REVENUE BONDS DUE 2023 ROSE 3/8 TO 98 3/8 YIELDING 557 METROPOLITAN SEATTLE'S 550 SEWER REVENUE REFUNDING BONDS DUE 2033 GAINED 1/8 TO 98 1/2 YIELDING 559 SEPARATELY NEW YORK STATE THRUWAY AUTHORITY SAID IT PLANS TO ISSUE ABOUT 200 MILLION OF BONDS FOR ITS CONSOLIDATED HIGHWAY IMPROVEMENT PROGRAM AT THE END OF THE MONTH THE SOCALLED CHIPS/MARCHISELLI BONDS ARE TO BE ISSUED ON BEHALF OF THE STATE TO REIMBURSE A NUMBER OF LOCALITIES FOR THEIR SPENDING ON ROAD IMPROVEMENTS PAINEWEBBER INC AND MORGAN STANLEY & CO ARE COSENIOR MANAGERS FOR THE FINANCING PROGRAM PAINEWEBBER WILL BE LEAD MANAGER OF THIS MONTH'S BOND SALE RECENT ISSUES OF MORTGAGEBACKED SECURITIES MATCHED OR BETTERED THE PRICE GAINS OF COMPARABLE TREASURY SECURITIES BUT OLDER HIGHERCOUPON SECURITIES DROPPED AS MUCH AS 3/8 POINT BECAUSE INTEREST RATES HAVE DROPPED SHARPLY IN RECENT MONTHS MANY HOMEOWNERS HAVE REFINANCED THEIR MORTGAGES THIS MEANS THAT INVESTORS HOLDING MORTGAGEBACKED SECURITIES MADE FROM THESE REFINANCED MORTGAGES ARE SEEING THEIR BONDS CALLED AWAY SOONER THAN EXPECTED BUT THE RECENT ISSUES PACKAGED FROM THE NEW MORTGAGES WITH INTEREST RATES OF ABOUT 65 ARE LESS VULNERABLE TO PREPAYMENTS AS A RESULT THEY ARE BETTER VALUES THAN THE OLDER SECURITIES AND TEND TO MOVE IN TANDEM WITH TREASURYS AMONG CURRENT COUPONS FOR SEPTEMBER DELIVERY GINNIE MAE 6 SECURITIES WERE UP 13/32 TO 99 9/32 FREDDIE MAC GOLD 6 AND FANNIE MAE 6 SECURITIES GAINED 7/32 TO 98 29/32 AND 98 25/32 RESPECTIVELY THE 7 COUPONS FROM ALL THREE AGENCIES WERE UP 6/32 WHILE COUPONS OF 7 1/2 AND HIGHER WERE DOWN 5/32 TO 12/32 HOMELOAN REFINANCING DATA RELEASED WEDNESDAY EVENING SPARKED A SELLOFF IN SECURITIES WITH COUPONS OF 8 AND ABOVE THE MORTGAGE BANKERS ASSOCIATION REPORTED THAT ITS REFINANCING INDEX CLIMBED TO 13810 IN THE WEEK ENDED AUG 27 FROM 13062 THE PREVIOUS WEEK INDICATING THAT LENDERS ARE SEEING A GREATER DEMAND FOR LOAN REFINANCING MEANWHILE IN THE PRIMARY MARKET COMPETITION MAY BE HEATING UP ACCORDING TO SEVERAL WALL STREET BANKERS THESE BANKERS SAID FEDERAL HOME LOAN MORTGAGE CORP LOWERED THE FEES IT CHARGES UNDERWRITERS FOR PACKAGING THEIR SECURITIES INTO REAL ESTATE MORTGAGE CONDUIT SECURITIES FREDDIE MAC OFFICIALS HOWEVER DENIED THE AGENCY WAS LOWERING THE FEES JACQUELINE DOHERTY CONTRIBUTED TO THIS COLUMN 9309030019 930903 INTERNATIONAL WORLD ECONOMY EFFORTS TO IMPOSE WEST'S VALUES ON CHINA MAY NOT BE IN BEST INTERESTS OF US BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NO ONE CAN FAIL TO SEE ALMOST THE MOMENT HE LANDS ON THESE ASIATIC SHORES THE URGENT NEED OF CHANGING OR ABOLISHING THE CUSTOMS THAT HAMPER TORMENT OR DEBASE THESE HEATHEN PEOPLES TO AN UNWISE DEGREE THE REFORMING ZEAL BEHIND THESE WORDS OF A 19TH CENTURY AMERICAN MISSIONARY IN SHANGHAI STILL SHAPES US POLICY TOWARD CHINA AT LEAST THAT'S THE VIEW OF MANY MODERN SINOLOGISTS WHO FEAR AN ETHNOCENTRIC AMERICA UNDERMINES ITS LONGTERM INTERESTS BY TRYING SO HARD TO IMPOSE FOREIGN POLITICAL VALUES ON A DEFIANT BEIJING TO THEM THIS RISKS PUSHING CHINA INTO UNFRIENDLY OPPOSITION TO FUNDAMENTAL WESTERN ECONOMIC POLITICAL AND SECURITY GOALS THEY WOULD RATHER EXPAND TRADE AND OTHER EXCHANGES RATHER THAN LIMIT THEM TO PULL CHINA EVER DEEPER INTO WORLD AFFAIRS AND SPEED SOCIAL CHANGE FROM WITHIN CHINA ISN'T A GULAG SAYS A DOAK BARNETT A LEADING CHINA SCHOLAR ITS FAIRLY LOOSE AUTHORITARIAN REGIME WILL CHANGE MUCH AS TAIWAN AND SOUTH KOREA HAVE DONE HE SAYS IT'S AN OLD DEBATE NEWLY REVIVED BY LAST WEEK'S UNILATERAL AMERICAN DECISION TO PUNISH CHINA FOR VIOLATING AN ARMS CONTROL TREATY IT DIDN'T SIGN BUT PROMISED TO ABIDE BY THE US SAYING THAT CHINA TRANSFERRED CERTAIN MISSILE TECHNOLOGY TO PAKISTAN CUT OFF A POTENTIAL 1 BILLION OF HIGHTECH EXPORTS TO CHINA OVER THE NEXT TWO YEARS BEIJING DENIES BREAKING THE RULES AND SAYS AMERICAN INTELLIGENCE HAS GOT IT WRONG BUT THE ISSUE GOES FAR BEYOND THE AMBIGUOUS AREA OF ARMS SALES BECAUSE CHINA SO OFTEN IGNORES WESTERN POLITICAL AND HUMANRIGHTS STANDARDS WASHINGTON REPEATEDLY THREATENS REPRISALS UNLESS IT REFORMS IT HOPES SANCTIONS HIGHER TARIFFS POLITICAL BOYCOTTS OR OTHER MEASURES WILL FORCE BEIJING TO CHANGE ITS WAYS THOUGH THE LATEST TRADE SANCTIONS MIGHT BE AVOIDED THROUGH NEGOTIATIONS THE ACTION HAS MADE THINGS TESTY ONCE AGAIN BEIJING SAYS THE LATEST SANCTIONS HAVE PUT SINOUS RELATIONS IN SERIOUS JEOPARDY AND SAY THE SINOLOGISTS THE US MIGHT GAIN MORE BY DOING LESS FOR ONE THING THE US COULD BE LESS STRIDENT ABOUT HUMAN RIGHTS THIS DOESN'T MEAN ABANDONING AMERICAN VALUES OR SINKING INTO CYNICISM WASHINGTON SHOULD REMAIN LOUD AND CLEAR ABOUT HOW IT DEFINES CIVIL DECENCY PARTICULARLY WHEN BEIJING VIOLATES ITS OWN LAWS IT SHOULD ALSO INSIST THAT BEIJING HONOR ITS PROMISES BUT INSTEAD OF RECURRING THREATS OF ECONOMIC PENALTIES SCHOLARS SAY WASHINGTON SHOULD EXPAND CHINA'S ROLE IN THE GLOBAL ECONOMY AND AMERICA'S ROLE IN CHINA THIS WOULD INCREASE US BUSINESS OPPORTUNITIES AND MAKE IT LESS LIKELY THAT INVESTMENT PLANS MIGHT BE UNDONE BY CHINESE REPRISALS EUROPEAN AND JAPANESE RIVALS SELDOM FACE THIS UNCERTAINTY BUT ECONOMICS NOT ONLY CREATES JOBS AND PROFITS IT ALSO AFFECTS HOW PEOPLE WORK AND PLAY CHINA HAS CHANGED RADICALLY SINCE REFORMS BEGAN IN 1979 AND THE TIANANMEN CRACKDOWN ONLY SLOWED THIS THE WORLD SHOULD BE RELIEVED THAT FOR THE CHINESE GOING INTO BUSINESS HAS REPLACED JOINING THE COMMUNIST PARTY AS THE WAY TO SUCCESS A LARGE FOREIGN BUSINESS PRESENCE ENCOURAGES THIS PROCESS CHANGE ALSO FREES PERSONAL LIFE ONE SMALL SAMPLE MANY MIDDLEAGED COUPLES GET EARLYMORNING EXERCISE ON SHANGHAI SIDEWALKS BY DANCING TO WORLD WAR IIERA GLENN MILLER TAPES TWENTY YEARS AGO THEY'D HAVE BEEN JAILED AS POLITICAL DEVIATES YET SENIOR MEMBERS OF THE CLINTON ADMINISTRATION LIKE MANY OTHER AMERICANS DON'T SEEM TO APPRECIATE HOW FAR CHINA HAS STRAYED FROM RIGID COMMUNISM THEIR POLICY HAS GAINED AN EVANGELICAL TONE A RECURRING THEME OF USCHINA RELATIONS MANY EXPERTS WANT THIS TONED DOWN WITH MORE ATTENTION TO THE UNDERLYING TREND AND LESS TO THE LATEST OUTRAGE FORCING THE PACE IS A MISTAKE SINOLOGISTS INSIST CHINA HAS A DISTINCT CULTURE WITH ITS OWN VALUES A CIVILIZATION PRETENDING TO BE A STATE IN ONE SCHOLAR'S WORDS IT RESENTS AND RESISTS FOREIGN PRESSURE AND WANTS TO BE MODERN MORE THAN WESTERN THIS IS PARTICULARLY TRUE OF RULERS WHO COMBINE A HISTORICAL SENSE OF CULTURAL SUPERIORITY WITH MARXISM MAKING THEM SO EXASPERATING AT TIMES THE US SHOULD SEEK TO INTENSIFY THE CHINA RELATIONSHIP INCLUDING BY HIGHLEVEL MILITARY MEETINGS ABOUT SECURITY ISSUES A QUASIBOYCOTT NOW IN EFFECT SHOULD END IT SHOULD STOP APPLYING A POLITICAL DOUBLE STANDARD THAT DEMANDS MORE FROM CHINA THAN FROM SAY SAUDI ARABIA OR INDONESIA 9309030018 930903 BUSINESS BRIEF EQUITABLE COS DONALDSON LUFKIN WILL PAY 150000 IN SEC SETTLEMENT DONALDSON LUFKIN & JENRETTE SECURITIES CORP AGREED TO GIVE UP 100000 IN PROFITS THAT IT OBTAINED FROM ALLEGEDLY IMPROPER PURCHASES OF TREASURY SECURITIES WITHOUT ADMITTING OR DENYING WRONGDOING THE FIRM A UNIT OF EQUITABLE COS OF NEW YORK ALSO AGREED TO PAY A 50000 CIVIL PENALTY TO SETTLE ADMINISTRATIVE PROCEEDINGS INITIATED BY THE SECURITIES AND EXCHANGE COMMISSION THE SETTLEMENT RESOLVED A MATTER THAT DONALDSON LUFKIN BROUGHT TO THE SEC'S ATTENTION IN 1991 REGARDING RECORDKEEPING BY THE FIRM'S PERSHING DIVISION THE ALLEGED VIOLATIONS INVOLVED THE PLACEMENT OF NONCOMPETITIVE ORDERS FOR TREASURY SECURITIES BETWEEN MARCH 1989 AND AUGUST 1991 ACCORDING TO THE SEC PERSHING EMPLOYEES REACHED AN AGREEMENT WITH EMPLOYEES OF CARROLL MCENTEE & MCGINLEY INC A NEW YORK PRIMARY DEALER IN GOVERNMENT SECURITIES TO CIRCUMVENT FEDERAL RULES ABOUT BUYING TREASURY ISSUES IN A STATEMENT DONALDSON LUFKIN SAID THE PERSHING EMPLOYEES INVOLVED HAD BEEN DISCIPLINED CARROLL MCENTEE REPRESENTATIVES COULDN'T BE REACHED FOR COMMENT THE FIRM AGREED TO PAY A PENALTY OF 30000 TO SETTLE THE SEC'S COMPLAINT BUT DIDN'T ADMIT OR DENY WRONGDOING 9309030017 930903 MEDICAL ACTION HALTS SHIPMENT HAUPPAUGE NY MEDICAL PRODUCTS SUPPLIER MEDICAL ACTION INDUSTRIES INC SAID IT TEMPORARILY SUSPENDED SHIPMENTS OF ITS STERILE LAPAROTOMY SURGICAL SPONGES AFTER FINDING MICROSCOPIC GROWTHS ON SOME OF THEM A COMPANY SPOKESMAN SAID A DISTRIBUTOR NOTICED THE GROWTH AND NOTIFIED THE COMPANY THE MICROSCOPIC ORGANISM HASN'T BEEN IDENTIFIED AND THE COMPANY MOST LIKELY WILL RECALL THE SPONGES THE COMPANY'S SALES OF THE SPONGES TOTALED 152 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 OR 46 OF ITS ANNUAL SALES OF ABOUT 333 MILLION THE COMPANY SAID THAT DUE TO THE SUSPENSION OF SHIPMENTS IT EXPECTS EARNINGS FOR THE SECOND QUARTER ENDING SEPT 30 TO APPROXIMATE BREAK EVEN LEVELS FOR THE SAME QUARTER LAST YEAR THE COMPANY HAD NET INCOME OF ABOUT 447000 OR SIX CENTS A SHARE 9309030016 930903 WORLD MARKETS TOKYO EQUITIES RESUME THEIR CLIMB PRICES FALL IN LONDON REBOUND TO END HIGHER IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES EDGED HIGHER THURSDAY RESUMING THEIR RECENT CLIMB IN HEALTHY DEALINGS TO POST THEIR SEVENTH GAIN IN EIGHT SESSIONS LONDON PRICES FELL CONTINUING THIS WEEK'S STRING OF DECLINES FRANKFURT STOCKS REBOUNDED FROM EARLY LOSSES AND MANAGED TO END A BIT HIGHER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11311 DOWN 023 REFLECTING DROPS IN THE ASIA/PACIFIC REGION AND IN THE AMERICAS AND INCREASES IN EUROPEAN MARKETS BIOTECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6830 UP 211 OR 319 WITH SAKATA SEED OF JAPAN POSTING AN 435 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13460 DOWN 417 OR 301 WITH NORMANDY POSEIDON OF AUSTRALIA SLIDING 574 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 7330 POINTS WEDNESDAY ROSE 2990 TO 2098320 ON FRIDAY THE NIKKEI ROSE 12231 POINTS TO CLOSE THE MORNING SESSION AT 2110551 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN FROM 3653 MILLION SHARES A DAY EARLIER GAINERS OUTPACED LOSERS 540470 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAVE UP 368 POINTS WEDNESDAY ROSE 457 TO 169398 THE NIKKEI MOVED IN A TIGHT BAND BETWEEN 2092129 AND 2104590 MEETING RESISTANCE AT THE 21000 LEVEL DEALERS AND FOREIGN INVESTORS CONCENTRATED ON ISSUES THAT COULD GAIN FROM JAPANESE GOVERNMENT DEREGULATION PLANS WHICH COULD BOOST IMPORTS AND THE OVERALL ECONOMY OR FROM A POSSIBLE INCOME TAX CUT STOCKS THAT BENEFITED INCLUDED TRADING FIRMS FOOD AND SUPERMARKET COMPANIES WITH THE US DOLLAR REBOUNDING AGAINST THE JAPANESE YEN ELECTRICAL EXPORTER SHARES TURNED IN HEAVY VOLUME THE STRONGER DOLLAR BOOSTS THE VALUE OF THOSE COMPANIES' OVERSEAS EARNINGS WHEN TRANSLATED INTO YEN BUT SOME EXPORTERS ENDED LOWER BECAUSE OF PROFITTAKING AFTER THEIR RECENT STRONG GAINS THE TOKYO MARKET CONTINUED TO RESIST WELL AGAINST DECLINES DESPITE A JAPANESE NEWS REPORT THAT CORPORATE PROFITS WILL SINK MORE THAN 10 AGAIN THIS YEAR AND DESPITE THE CENTRAL BANK GOVERNOR'S REJECTION OF A DISCOUNT RATE CUT WHICH HAS BEEN SOUGHT TO HELP STIMULATE THE MORIBUND ECONOMY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 125 POINTS TO 30726 THE FT 30STOCK INDEX SLIPPED 17 POINTS TO 24014 VOLUME WAS 6743 MILLION SHARES COMPARED WITH 6122 MILLION SHARES A DAY EARLIER THOUGH THE LONDON MARKET HASN'T SCORED A GAIN THIS WEEK IT WAS CONSIDERED STABLE AS LONGTERM INVESTORS WERE RESOLUTE AND PRICE DRIFTS WERE ATTRIBUTED PARTLY TO MILD PROFITTAKING BY FUNDS WITH SHORTTERM OUTLOOKS CORPORATE EARNINGS REPORTS YESTERDAY WERE LARGELY AS EXPECTED THE MARKET WAS SUPPORTED CHIEFLY BY STRONG GAINS FOR PHARMACEUTICAL STOCKS ON NEWS THAT PRESIDENT BILL CLINTON WILL AVOID DRUGPRICE CONTROLS IN HIS US HEALTHREFORM PACKAGE IN FRANKFURT THE DAX 30STOCK INDEX ROSE 704 POINTS TO 192562 JUST TWOTENTHS OF A POINT OFF THE INTRADAY HIGH THE FINISH BROUGHT THIS WEEK'S GAIN TO 11 AFTER A 2631POINT LOSS WEDNESDAY YESTERDAY 13 OF THE DAX STOCKS ADVANCED AND 15 RETREATED THE FRANKFURT MARKET'S OVERALL ROBUSTNESS SURPRISED SOME INVESTORS PRICES TUMBLED IN THE FIRST HALFHOUR ON A WEAKER DOLLAR WHICH DRAGGED EXPORTDEPENDENT SHARES DOWN BUT INSTITUTIONAL INVESTORS ESPECIALLY THOSE FROM THE US MOVED IN TO TAKE ADVANTAGE OF WEAKER STOCK PRICES INVESTORS HAVE BEEN SNATCHING SUCH BUYING OPPORTUNITIES AS OTHER INVESTMENT OPTIONS AREN'T AS APPEALING BECAUSE OF LOW RATES OF RETURN CHEMICAL AND PHARMACEUTICAL STOCKS BENEFITED FROM THE REPORT THAT THE US ADMINISTRATION WON'T PROPOSE PRICE CONTROLS ON DRUGS IN PARIS STOCKS SLIPPED IN A FURTHER CONSOLIDATION FOLLOWING THE MARKET'S RECENT CLIMB TO RECORD HEIGHTS VOLUME WAS MODERATE US INVESTORS WHO HAVE BEEN THE MOST AGGRESSIVE BUYERS IN PARIS DURING THE SUMMER RALLY APPEARED TO BE CUTTING POSITIONS AHEAD OF THE LABOR DAY HOLIDAY WEEKEND IN THE US IN AMSTERDAM PRICES FINISHED MIXED THOUGH MOST BLUE CHIPS WERE LOWER DRAGGED DOWN BY A WEAKER DOLLAR LOWER PRICES IN LONDON A WEAK START ON WALL STREET AND PERCEPTIONS THAT EUROPEAN CENTRAL BANKS MIGHT NOT CUT INTEREST RATES ANYTIME SOON TO SPUR ECONOMIC GROWTH IN MILAN AFTER PROFITTAKING DOMINATED AT THE OPENING A BUYING WAVE EMERGED LATER IN THE DAY AND DROVE SHARE PRICES HIGHER STOCKHOLM SHARES REBOUNDED FROM THE PREVIOUS DAY'S SLUMP GAINING 1 IN HEAVY TRADING LED BY THE PHARMACEUTICAL SECTOR WHICH WAS SPURRED BY THE REPORT OF US OFFICIALS' INTENTION TO LEAVE PHARMACEUTICAL PRODUCTS' PRICES SUBJECT TO MARKET FORCES IN ZURICH STOCKS FELL YANKED DOWN BY AN EARLY SELLOFF IN THE BANKING SECTOR WHERE INVESTORS TOOK PROFITS AFTER CORPORATE EARNINGS WEREN'T AS HIGH AS EXPECTED SYDNEY STOCKS' RALLY FINALLY STALLED AND MOST SECTORS FINISHED LOWER SELLING OF LARGER STOCKS ERODED EARLY BULLISH SENTIMENT SINGAPORE EQUITIES ROSE TO SCORE A SECOND RECORD FINISH THIS WEEK AND THEIR THIRD CONSECUTIVE GAIN IN A BULL RUN HELPED BY LOTS OF LIQUIDITY INVESTORS ROTATED PROFITTAKING WITH BUYING FRESH POSITIONS AND FOREIGN FUNDS AGGRESSIVELY BOUGHT BLUE CHIPS IN HONG KONG SHARES THUDDED ON PROFITTAKING MANILA STOCKS CLIMBED IN BUSY TRADING AS POSITIVE SENTIMENT CONTINUED SEOUL SHARES MANAGED TO FINISH SLIGHTLY HIGHER AFTER A LATE BUYING WAVE WELLINGTON PRICES' SHARP RISE WAS LED BY INCREASES IN BLUE CHIPS AMONG CORPORATE DEVELOPMENTS IN LONDON SUN ALLIANCE TUMBLED 20 PENCE OR 52 TO 367 PENCE 552 THE COMPOSITE INSURER'S FIRSTHALF SOLVENCY MARGIN FELL TO 50 FROM 54 ON DEC 31 BECAUSE OF WRITEOFFS FOR RECENT ACQUISITIONS THE SOLVENCY MARGIN IS A MEASURE OF FINANCIAL STRENGTH FOR COMPOSITES WHICH WRITE BOTH GENERAL AND LIFE INSURANCE IN FRANKFURT VOLKSWAGEN JUMPED 119 MARKS OR 32 TO 37950 MARKS 22869 AHEAD OF A BOARD MEETING ON THE INDUSTRIAL ESPIONAGE SCANDAL INVOLVING THE AUTO MAKER'S PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA AND GENERAL MOTORS OF THE US DESPITE MARKET RUMORS THAT MR LOPEZ AND EVEN VW CHAIRMAN FERDINAND PIECH COULD BE OUSTED OR SUSPENDED THE MARKET DIDN'T EXPECT ANY DRASTIC DECISIONS AND SAW INSTEAD PROMISING RECOVERY POTENTIAL FOR VW'S FINANCIAL PERFORMANCE 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 9309030015 930903 CREDIT RATINGS GLENFED INC GLENDALE CALIF MOODY'S INVESTORS SERVICE INC SAID IT RAISED THE RATING FOR LONGTERM DEPOSITS OF THIS HOLDING COMPANY'S THRIFT UNIT GLENDALE FEDERAL BANK TO B2 FROM B3 AND ASSIGNED A CAA RATING TO THE NONCUMULATIVE CONVERTIBLE PREFERRED STOCK THE ACTION AFFECTING ABOUT 201 MILLION OF SECURITIES CAME IN RESPONSE TO A RECAPITALIZATION PLAN AIMED AT IMPROVING THE CAPITAL POSITION OF GLENFED INC BY 451 MILLION THE AGENCY SAID THE RATINGS ALSO REFLECT THE VIEW THAT GLENDALE FEDERAL WILL CONTINUE TO BE CHALLENGED BY ASSET QUALITY PROBLEMS AS WELL AS ADDITIONAL FUTURE CAPITAL REQUIREMENTS WESTERN PUBLISHING GROUP INC NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED RATINGS OF WESTERN PUBLISHING'S SENIOR NOTES TO BA1 FROM BAA3 BECAUSE OF EXPECTATIONS THAT DEBTPROTECTION MEASUREMENTS WILL SHOW MODERATE DETERIORATION IN THE NEAR TERM DUE TO HEAVY WORKING CAPITAL REQUIREMENTS AND SPENDING FOR NEW BUSINESS OPPORTUNITIES ABOUT 150 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID THE PRINTING COMPANY WHICH ALSO PUBLISHES CHILDREN'S BOOKS IS LIKELY TO REMAIN A CASH USER IN THE NEXT FEW YEARS AFTER CAPITAL EXPENDITURES WHICH WILL PROBABLY RESULT IN RELATIVELY HIGHER DEBT LEVELS AND WEAKER DEBTPROTECTION MEASUREMENTS OVER THE INTERMEDIATE TERM 9309030014 930903 PERSONNEL FILES OF BUSH APPOINTEES SPARK US PROBE BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE STATE DEPARTMENT'S INSPECTOR GENERAL IS INVESTIGATING WHETHER THE DEPARTMENT'S WHITE HOUSE LIAISON OFFICE MAY HAVE VIOLATED THE LAW BY DISCLOSING INFORMATION FROM PERSONNEL FILES OF POLITICAL APPOINTEES WHO SERVED DURING THE BUSH ADMINISTRATION THE INQUIRY WAS PROMPTED BY A REPORT IN THE WASHINGTON POST THIS WEEK ASSERTING THAT THE CLINTON ADMINISTRATION RETRIEVED 160 PERSONNEL FILES OF POLITICAL APPOINTEES FROM A STORAGE FACILITY IN MARYLAND DETAILS SUPPOSEDLY CONTAINED IN SEVERAL OF THOSE FILES APPEARED IN THE NEWSPAPER'S ACCOUNT UNDER THE PRIVACY ACT DISCLOSING INFORMATION FROM SUCH FILES WOULD BE A CRIMINAL OFFENSE A DEPARTMENT OFFICIAL SAID THAT IN JUNE THE DEPARTMENT'S LIAISON OFFICE MADE A REQUEST FOR ALL THE FILES THAT HAD BEEN KEPT IN THE LIAISON OFFICE DURING THE BUSH ADMINISTRATION THE OFFICIAL SAID THE REQUEST WAS MADE BECAUSE BUSH ADMINISTRATION OFFICIALS HAD SENT ALL THEIR RECORDS FROM THE LIAISON OFFICE TO THE ARCHIVES IN MARYLAND WHEN MR BUSH'S TERM ENDED AT THE STATE DEPARTMENT DAILY BRIEFING YESTERDAY MICHAEL MCCURRY THE DEPARTMENT'S SPOKESMAN SAID THAT AFTER THE POST ARTICLE APPEARED THERE ARE SOME QUESTIONS THAT NEEDED TO BE LOOKED AT MORE CAREFULLY AND INSPECTOR GENERAL SHERMAN FUNK WAS CONTACTED TO ASK FOR SOME FURTHER INQUIRIES TO BE MADE THE ACTION PROVIDES AN IRONIC TWIST TO AN INCIDENT FROM LAST FALL'S PRESIDENTIAL CAMPAIGN AT THAT TIME BUSH ADMINISTRATION OFFICIALS CONDUCTED A SEARCH OF BOTH MR CLINTON'S AND HIS MOTHER'S PASSPORT FILES LOOKING FOR EMBARRASSING INFORMATION THE EFFORT BACKFIRED EMBARRASSING THE BUSH TEAM INSTEAD AND LEADING TO INSPECTOR GENERAL AND CRIMINAL INVESTIGATIONS A CENTRAL FIGURE IN THAT SCANDAL WAS ELIZABETH TAMPOSI THEN ASSISTANT SECRETARY OF STATE FOR CONSULAR AFFAIRS MS TAMPOSI WAS FIRED BY PRESIDENT BUSH AFTER HER INVOLVEMENT SURFACED LAST YEAR MS TAMPOSI'S PERSONNEL FILE WAS ONE OF TWO FROM WHICH INFORMATION WAS LEAKED TO THE WASHINGTON POST THE NEWSPAPER SAID A REPUBLICAN SENATOR MITCH MCCONNELL OF KENTUCKY WROTE A LETTER TO ATTORNEY GENERAL JANET RENO URGING THAT A SPECIAL PROSECUTOR BE APPOINTED FOR THE CASE I DO NOT BELIEVE THAT THE STATE DEPARTMENT OR ANY OTHER ENTITY CAN PROMISE AN IMPARTIAL AND EXPEDITIOUS REVIEW SEN MCCONNELL WROTE HOWEVER THE LAW PROVIDING FOR THE CREATION OF SPECIAL PROSECUTORS HAS EXPIRED ANOTHER CENTRAL FIGURE ACCUSED OF INVOLVEMENT IN THE CLINTON PASSPORT SCANDAL JANET MULLINS WHO WAS ASSISTANT SECRETARY OF STATE FOR LEGISLATIVE AFFAIRS ONCE WORKED FOR SEN MCCONNELL AND THREE GOP CONGRESSMEN BENJAMIN GILMAN OF NEW YORK HENRY HYDE OF ILLINOIS AND WILLIAM CLINGER OF PENNSYLVANIA CALLED ON THE GENERAL ACCOUNTING OFFICE TO CONDUCT AN INVESTIGATION IT ISN'T CLEAR WHETHER ANY VIOLATIONS WERE COMMITTED BY THE CLINTON STATE DEPARTMENT RETRIEVING PERSONNEL FILES AND REVIEWING THEM WOULDN'T BY ITSELF VIOLATE THE LAW ONE OFFICIAL SAID ALTHOUGH SOME IRATE REPUBLICANS ARE ASKING WHY ADMINISTRATION OFFICIALS WOULD NEED FILES OF PEOPLE WHO NO LONGER WORK AT THE DEPARTMENT A STATE DEPARTMENT OFFICIAL WHO IS FAMILIAR WITH DEPARTMENT INVESTIGATIONS SAID IT WOULD BE PERMISSIBLE TO LOOK AT PERSONNEL FILES IN THE LINE OF DUTY BUT NOT TO TALK TO THE MEDIA ABOUT THEM 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 9309030013 930903 DIAL PAGE INC ENTERS PACT TO BUY 2 FIRMS FOR 395 MILLION TOTAL GREENVILLE SC DIAL PAGE INC A PAGING SERVICE PROVIDER SAID IT ENTERED INTO A DEFINITIVE PACT TO BUY TWO CLOSELY HELD RADIO DISPATCH PROVIDERS IN A TRANSACTION VALUED AT ABOUT 395 MILLION THE TWO COMPANIES ARE TRANSIT COMMUNICATIONS CORP AND ADVANCED MOBILECOMM OF NORTH CAROLINA INC DIAL SAID IT WOULD ISSUE ABOUT 95 MILLION UNREGISTERED COMMON SHARES TO TRANSIT BASED IN ATLANTA AND 14 MILLION UNREGISTERED SHARES TO ADVANCED MOBILECOMM OF NORTH CAROLINA WHICH IS OWNED BY FIDELITY INVESTMENTS IN BOSTON THE MERGERS ARE INTENDED TO QUALIFY AS A TAXFREE REORGANIZATION IN OVERTHECOUNTER TRADING YESTERDAY DIAL CLOSED AT 3625 A SHARE UP 125 OR 36 THAT WOULD GIVE THE TRANSACTION AN INDICATED VALUE OF ABOUT 395 MILLION DIAL PAGE CURRENTLY HAS ABOUT NINE MILLION SHARES OUTSTANDING THE AGREEMENT WAS ANNOUNCED AFTER MARKETS CLOSED YESTERDAY DIAL PAGE SAID THE MERGED COMPANIES WILL BECOME THE THIRDLARGEST OPERATOR OF SPECIALIZED MOBILE RADIO IN THE US SERVING MORE THAN 260000 CUSTOMERS IN THE SOUTHEAST SPECIALIZED MOBILE RADIO SYSTEMS TRADITIONALLY HAVE USED PART OF THE RADIO SPECTRUM TO COMMUNICATE WITH FLEETS SUCH AS DELIVERY SERVICES CONTRACTORS AND TAXICABS THOMAS GRINA CHIEF FINANCIAL OFFICER OF DIAL PAGE SAID THE COMPANY ALSO AIMS TO CREATE A BROAD DIGITAL MOBILE TELEPHONE NETWORK TO COMPETE WITH EXISTING CELLULAR PHONE NETWORKS DIAL PAGE WHICH WENT PUBLIC LAST NOVEMBER HAD REVENUE OF 526 MILLION IN 1992 THE COMPANY HAS POSTED NET LOSSES FOR THE PAST FIVE YEARS AND CUT ITS LOSSES TO 97 MILLION LAST YEAR 9309030012 930903 MARKETING BRIEF LIBERTY MEDIA CORP ENCORE UNIT PLANS TO BUY FILMS FROM CAROLCO PICTURES LIBERTY MEDIA CORP'S ENCORE PAYTV UNIT SAID IT SIGNED AN AGREEMENT TO BUY AS MANY AS 20 MOVIES FROM CAROLCO PICTURES INC AND MAY TELEVISE SOME BEFORE THEY REACH THEATERS ALTHOUGH TERMS WEREN'T DISCLOSED ANALYSTS ESTIMATE THAT SUCH MOVIES COST ABOUT 4 MILLION TO 5 MILLION EACH TO MAKE THUS ENCORE COULD SPEND AS MUCH AS 100 MILLION FOR THE PACKAGE AS MANY AS FOUR OF THE FILMS MAY BE AIRED ON A PAYPERVIEW BASIS PRIOR TO THEATRICAL RELEASE BASED ON AN AGREEMENT REACHED EARLIER BETWEEN CAROLCO AND TELECOMMUNICATIONS INC WHICH SPUN OFF LIBERTY MEDIA SEVERAL YEARS AGO ENCORE A LOWERPRICED CHANNEL THAT AIRS MOVIES FIRST RELEASED IN THE 1960S '70S AND '80S IS OWNED BY CHAIRMAN JOHN SIE AND LIBERTY MEDIA OF ENCORE'S NEARLY FOUR MILLION SUBSCRIBERS ALL BUT ABOUT 700000 ARE TELECOMMUNICATIONS CUSTOMERS 9309030011 930903 AMERICAN AIRLINES OFFERS CONTRACT BUT UNION SPURNS IT BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN AIRLINES MADE A CONTRACT PROPOSAL TO ITS 21000 FLIGHT ATTENDANTS THAT OFFERS EARLY RETIREMENT TO THOUSANDS OF WORKERS AND CALLS FOR SIGNIFICANT CHANGES IN WORK RULES IN EXCHANGE FOR SOME PAY INCREASES BUT THE UNION LEADERSHIP DISMISSED THE PROPOSAL AS A STEP BACK AND SAID IT WOULD CONSIDER SENDING STRIKEAUTHORIZATION BALLOTS OUT TO MEMBERS NEXT WEEK THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS AND THE AMR CORP UNIT HAVE BEEN IN TALKS SINCE LAST OCTOBER AND THE TWO SIDES STILL APPEAR TO BE FAR APART ON MANY OF THE ISSUES CONTAINED IN THE CONTRACT PROPOSAL MADE EARLIER THIS WEEK BUT DISCLOSED ONLY YESTERDAY WHILE THE APFA WANTS AN INDUSTRYLEADING CONTRACT AMERICAN IS LOOKING FOR AN ACCORD THAT ENABLES IT TO LOWER ITS OVERALL UNIT COSTS NOT SURPRISINGLY THE TWO SIDES COULDN'T AGREE EVEN ON HOW TO VIEW THIS CONTRACT PROPOSAL A UNION ATTORNEY DESCRIBED THE OFFER AS CONCESSIONARY BUT AN AMERICAN SPOKESMAN CALLED IT A VERY LUCRATIVE PROPOSAL AMERICAN IS OFFERING JUNIOR FLIGHT ATTENDANTS WAGE INCREASES OF BETWEEN 41 AND 50 OVER FOUR YEARS WITH THE LARGEST JUMPS GOING TO WORKERS WITH LOW SENIORITY AND PAY AS LOW AS 15000 A YEAR ATTENDANTS WITH AS MANY AS 14 YEARS' SENIORITY WOULD HAVE THEIR PAY GO UP BETWEEN 11 AND 42 DEPENDING ON THEIR YEARS WITH THE COMPANY AND THE COMPANY ALSO SEEKS TO ADD THREE MORE SENIORITY STEPS AT THE SAME TIME HOWEVER AMERICAN WANTS TO OFFER EARLY OUT RETIREMENT TO SENIOR FLIGHT ATTENDANTS IN EXCHANGE FOR THE UNION'S GIVING UP CONTROL OF STAFFING LEVELS ON AIRCRAFT FOR 10 YEARS THE COMPANY ALSO WANTS TO LOWER VACATION BENEFITS REQUIRE EMPLOYEE CONTRIBUTIONS FOR MEDICAL BENEFITS AND CHANGE THE PROCEDURE UNDER WHICH FLIGHT ATTENDANTS CHOOSE WHICH TRIPS THEY WILL WORK ROBERT CLAYMAN A PARTNER WITH THE LAW FIRM GUERRIERI EDMOND & JAMES WHO IS ADVISING THE FLIGHT ATTENDANTS ON THEIR CONTRACT TALKS SAID THE WORKERS ARE UNHAPPY WITH THE OFFER AMERICAN CLEARLY DOES NOT UNDERSTAND THE FEELINGS OF THE MEMBERSHIP HE SAID YOU DON'T PRESENT A SUBSTANDARD CONCESSIONARY CONTRACT TO A MEMBERSHIP THAT HASN'T SEEN ANY REAL WAGE INCREASES SINCE 1985 THAT WAS WHEN AMERICAN'S FLIGHT ATTENDANTS ACCEPTED A CONTRACT THAT LOWERED WAGES FOR NEW HIRES BY 30 BUT PROMISED THAT THE CUT WOULD BE MADE UP BY A VAST EXPANSION PLAN THAT HAS MORE THAN DOUBLED THE AIRLINE'S OPERATIONS RECENTLY HOWEVER INDUSTRYWIDE LOSSES HAVE FORCED THE FORT WORTH TEXAS CONCERN TO SCALE BACK AMERICAN'S CONTRACT WITH ITS FLIGHT ATTENDANTS EXPIRED DEC 31 BUT UNDER AIRLINE LABOR LAW THE OLD CONTRACT REMAINS IN EFFECT UNTIL A NEW ONE IS SIGNED OR UNTIL AFTER A FEDERAL MEDIATOR RULES THE TWO SIDES ARE DEADLOCKED THE MEDIATOR SUPERVISING THE TALKS HASN'T MADE SUCH A RULING AMR SHARES CLOSED YESTERDAY AT 65625 DOWN 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309030010 930903 SUN ALLIANCE SHARES SLIDE 52 AS MARGIN OF SOLVENCY DROPS SPECIAL TO THE WALL STREET JOURNAL LONDON SHARES OF BRITISH COMPOSITE INSURER SUN ALLIANCE PLC SANK 52 AFTER IT REPORTED A REDUCTION IN ITS SOLVENCY MARGIN DURING THE FIRST HALF OF 1993 BECAUSE OF WRITEOFFS FOR RECENT ACQUISITIONS THE SOLVENCY MARGIN IS A MEASURE OF FINANCIAL STRENGTH FOR COMPOSITES WHICH WRITE BOTH GENERAL AND LIFE INSURANCE SUN SAID ITS SOLVENCY MARGIN FELL TO 50 AS OF JUNE 30 FROM 54 ON DEC 31 SUN ALLIANCE HAS BEEN FAVORED IN THE PAST BY INVESTORS FOR ITS FINANCIAL STRENGTH IN COMPARISON WITH ITS UK COMPETITORS THE STOCK CLOSED YESTERDAY ON THE LONDON STOCK EXCHANGE AT 367 PENCE 552 A SHARE DOWN 20 PENCE ON THE DAY INDUSTRY ANALYSTS WERE MORE POSITIVE ON THE INSURER'S FIRSTHALF RESULTS THE COMPANY SAID IT SWUNG TO A PRETAX PROFIT OF 617 MILLION 928 MILLION IN THE FIRST HALF FROM A 979 MILLION LOSS A YEAR BEFORE BUT ANALYSTS DIVIDED OVER SUN ALLIANCE'S DECISION TO ASK SHAREHOLDERS TO AUTHORIZE A 300 MILLION ISSUE OF PREFERENCE SHARES IN FEBRUARY SUN ALLIANCE ISSUED 140 MILLION IN EUROCONVERTIBLE BONDS SUN ALLIANCE SAID YESTERDAY THAT ITS NET ASSETS EXCLUDING THE VALUE OF ITS LIFEINSURANCE BUSINESS ROSE BY JUST 13 MILLION DURING THE FIRST HALF TO 156 BILLION 235 BILLION AS OF JUNE 30 THE COMPANY SAID 163 MILLION IN INVESTMENT APPRECIATION WAS OFFSET BY WRITEOFFS OF GOODWILL ON THE SUN ALLIANCE'S ACQUISITION OF DANISH INSURER HAFNIA AND ON ITS BUYOUT OF MINORITY SHAREHOLDERS IN SWINTON HOLDINGS LTD A UK CHAIN OF RETAIL INSURANCE OUTLETS 9309030009 930903 MARKETING & MEDIA ADVERTISING DOWBRANDS CRITICIZED AND PRAISED FOR AD FEATURING DISABLED CHILD BY KEVIN GOLDMAN THE AD REEKS OF NORMAN ROCKWELL AND SWEETNESS IN AMERICA PORTRAYING A MOTHER AND HER DAUGHTER AS BEST FRIENDS BUT THIS ISN'T AN EVERYDAY SCENE USING PROFESSIONAL ACTORS KAY EWING'S OWN EIGHTYEAROLD DAUGHTER HALLEY IS A SPECIALLY CHALLENGED CHILD WITH DOWN SYNDROME ALTHOUGH ON FIRST GLANCE IT SEEMS THAT THE EWINGS A REAL FAMILY WHO LIVE IN AN ATLANTA SUBURB ARE APPEARING IN A PUBLICSERVICE MESSAGE FOR A DOWN SYNDROME SUPPORT GROUP THE AD ACTUALLY IS FOR A RATHER ORDINARY HOUSEHOLD PRODUCT SPRAY 'N WASH STAIN STICK FROM DOW CHEMICAL'S DOWBRANDS DIVISION THE MENTALLY HANDICAPPED PERHAPS THE LAST UNTAPPED GROUP IN THE EMERGING GENRE OF ADVERTISING THAT PORTRAYS THE DISABLED IS MAKING SIGNIFICANT HEADWAY IN THIS DETERGENT CAMPAIGN OTHER COMPANIES SUCH AS THE FASTFOOD CHAIN MCDONALD'S AND THE CLOTHING MAILORDER GIANT LANDS' END ALSO USE INDIVIDUALS WITH DOWN SYNDROME IN SOME TELEVISION OR PRINT ADS IT'S A TRICKY CHALLENGE FOR MADISON AVENUE EACH COMMERCIAL RISKS APPEARING CONDESCENDING AND OFFENDING TO THOSE WITH DOWN SYNDROME AND THEIR FAMILIES BURGER KING A UNIT OF GRAND METROPOLITAN PLC STUMBLED IN JULY WHEN IT HAD TO PULL A LOCAL TELEVISION COMMERCIAL IN CHICAGO AFTER RECEIVING COMPLAINTS FROM PARENTS OF CHILDREN WITH DOWN SYNDROME ONE MOTHER FOUND THE AD IN WHICH A GROWN MAN WITH DOWN SYNDROME COULDN'T REMEMBER A SPECIAL PHRASE AND HAD TO BE HELPED BY HIS PARENT INSULTING RARELY THOUGH IS THE SPECIALLY CHALLENGED INDIVIDUAL THE PRIME FOCUS OF A COMMERCIAL USUALLY THE PERSON IS PART OF THE LARGER HUMAN LANDSCAPE JUST ONE MORE MAN OR WOMAN IN A GROUP OF FRIENDS OR FAMILY DOWN SYNDROME OR OTHER SPECIFIC HANDICAPS ARE RARELY MENTIONED BUT IN THE SPRAY 'N WASH AD FOR PRINT AND TELEVISION THE CHILD WITH DOWN SYNDROME TAKES CENTER STAGE HALLEY THE AD BEGINS HAS MADE MY LIFE VERY EXCITING SHE'S VERY AFFECTIONATE AND SHE IS VERY ACTIVE WE USE STAIN STICK BECAUSE THE LAST PLACE WE NEED ANOTHER CHALLENGE IS THE LAUNDRY ROOM THERE ARE SHOTS OF HALLEY AS SHE REMOVES HER OUTER SHIRT AND PLACES IT IN THE HAMPER FOLLOWED BY FOOTAGE OF MOTHER AND DAUGHTER PLAYING OUTDOORS THE SPOT AVOIDS THE USE OF THE TERM DOWN SYNDROME AT LEAST ONE CRITIC ADVERTISING AGE'S BOB GARFIELD FOUND THE TELEVISION ADS EXPLOITIVE WRITING IN THE WEEKLY TRADE PUBLICATION MR GARFIELD CALLED ONE AD APPALLING AND THE MOST CRASSLY CONTRIVED SLICEOFLIFE IN ADVERTISING HISTORY GROUPS SUCH AS THE NATIONAL DOWN SYNDROME CONGRESS APPLAUD THE INCLUSION OF DEVELOPMENTALLY DELAYED INDIVIDUALS IN FACT THE ATLANTABASED ORGANIZATION LAST WEEK AWARDED DOW ITS ANNUAL MEDIA AWARD FOR THE SPRAY 'N WASH CAMPAIGN THIS DOESN'T EXPLOIT PEOPLE WITH DOWN SYNDROME SAYS FRANK MURPHY EXECUTIVE DIRECTOR OF THE ORGANIZATION THIS IS A POSITIVE APPROACH IT'S GIVING OUR PEOPLE THEIR DUE AND SHOWING THEM AS REGULAR CITIZENS ACTUALLY DOWBRANDS DIDN'T PRODUCE THE COMMERCIAL OUT OF ALTRUISM QUITE THE CONTRARY THE WHOLE IDEA WAS TO POSITION THE STAIN STICK AS A CONVENIENCE PRODUCT FOR A MOM WITH KIDS SAYS GREG MARCHI ACCOUNT SUPERVISOR AT DOWBRANDS' AGENCY HENDERSON ADVERTISING GREENVILLE SC WE WANTED TO DOWNPLAY THE PRODUCT AND COMMUNICATE A HIGHER BENEFIT SAYS MR MARCHI THE MESSAGE DOWBRANDS WANTS TO SEND THERE'S MORE TO LIFE THAN DOING LAUNDRY THE LONGER THAT THE AGENCY THOUGHT OF HOW TO CONVEY THE IMPORTANCE OF SPENDING QUALITY TIME WITH CHILDREN THE MORE IT THOUGHT THAT A SPECIALLY CHALLENGED INDIVIDUAL WOULD BEST CONVEY THE MESSAGE IT WASN'T AN EASY SELL TO DOWBRANDS IT WOULD BE LUDICROUS TO SAY THAT WE CAME IN PITCHED IT AND THEY LOVED IT RIGHT AWAY CONCEDES MR MARCHI AND ERIC STEINHOUSE DIRECTOR OF DOW'S BRAND MANAGEMENT FOR HOME CARE RECALLS IT WASN'T AN EASY SELL WE HAD TO CONSIDER THAT THE CHILD IS PORTRAYED IN A POSITIVE LIGHT THE AGENCY HIRED A TALENT AGENCY THAT WORKED WITH THE NATIONAL DOWN SYNDROME CONGRESS APPROPRIATE FAMILIES WERE IDENTIFIED AND AUDITIONED THE AD SAYS MR STEINHOUSE HAS INDEED BEEN SO WELL RECEIVED OF THE 700 CALLS RECEIVED ON THE COMPANY'S TOLLFREE TELEPHONE LINE ONLY SEVEN WERE REPORTED AS UNFAVORABLE THAT THERE IS A STRONG POSSIBILITY OTHER PEOPLE WITH DOWN SYNDROME WILL BE USED IN FUTURE SPOTS WHILE DOWBRANDS MAY BE THE MOST RECENT EXAMPLE PERHAPS THE MOST AMBITIOUS PROJECT CAME FROM MCDONALD'S TWO YEARS AGO THE OAK BROOK ILL CHAIN AND ITS AGENCY LEO BURNETT CHICAGO PRODUCED A SPOT TITLED MIKE IN WHICH A TEENAGER WITH DOWN SYNDROME WAS SHOWN WORKING AT MCDONALD'S THAT COMMERCIAL WAS ALSO WELL RECEIVED HOWEVER IT HAD TO BE PULLED AFTER MIKE SEWELL THE STUDENT DIED LAST YEAR THE MORE VISIBILITY THAT PEOPLE WITH DOWN SYNDROME RECEIVE THE MORE THEY WILL GAIN ACCEPTANCE SAYS DONNA ROSENTHAL EXECUTIVE DIRECTOR OF THE NATIONAL DOWN SYNDROME SOCIETY IN NEW YORK FOR HER PART MS EWING SAYS SHE HAS NO SECOND THOUGHTS ABOUT HER DAUGHTER'S APPEARING IN A NATIONAL ADVERTISEMENT WE USE CHILDREN IN COMMERCIALS BECAUSE THEY ARE APPEALING SAYS MS EWING IN THAT SENSE HALLEY IS NO MORE EXPLOITED THAN ANY OTHER CHILD APPEARING IN ANY OTHER COMMERCIAL IN THE MIDST OF DEFENDING INTERNATIONAL BUSINESS MACHINES CORP'S BIG PERSONAL COMPUTER ACCOUNT AGAINST STIFF COMPETITION IN A REVIEW INTERPUBLIC GROUP'S LINTAS HAS FORMED A UNIT DEDICATED TO SAVING THE 40 MILLION BUSINESS AS ONE HEAD OF THE NEW EFFORT LINTAS HIRED STEWART OWEN AS EXECUTIVE VICE PRESIDENT AND DIRECTOR OF STRATEGIC DEVELOPMENT MR OWEN 42 YEARS OLD WAS PREVIOUSLY VICE CHAIRMAN OF LANDOR & ASSOCIATES A CORPORATE AND BRAND DESIGN CONSULTING UNIT OF YOUNG & RUBICAM IBM AND ITS PC UNIT HAD BEEN TWO OF MR OWEN'S CLIENTS AT LANDOR HE SAID LINTAS ALSO NAMED ITS EXECUTIVE VICE PRESIDENT DAVID NATHANSON HIRED LAST MONTH TO THE POST OF CREATIVE DIRECTOR AT THE NEW UNIT IN ADDITION LINTAS HIRED ABOUT FIVE NEW CREATIVE STAFFERS TO WORK THERE IN ALL ABOUT 20 PEOPLE WILL STAFF THE NEW UNIT SAID ANTHONY MILLER CHAIRMAN AND CHIEF EXECUTIVE OF LINTAS'S NEW YORK OPERATIONS DUBBED L2 THE NEW UNIT MIRRORS THE STRENGTH THAT IBM IS DEMANDING MR MILLER SAID LINTAS IS DEFENDING THE BUSINESS IN A STRATEGIC PITCH AGAINST FOUR COMPETITORS LEO BURNETT CHICAGO CHIAT/DAY VENICE CALIF GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO AND MERKLEY NEWMAN HARTY NEW YORK A DECISION IS EXPECTED IN OCTOBER TOYOTA MOTOR CORP SAID IT FILED SUIT IN NEW YORK STATE SUPREME COURT AGAINST A FORMER AGENCY MARTIN DAVIS OMON & PARTNERS THE TINY NEW YORK SHOP THAT CREATED THE AUTO MAKER'S CORPORATE PRINT ADVERTISING FROM 1990 THROUGH MIDJUNE A SPOKESMAN FOR TOYOTA'S NORTH AMERICAN CORPORATE SERVICES UNIT BASED IN NEW YORK SAID TOYOTA HAD ADVANCED MONEY TO MARTIN DAVIS OMON TO COVER ANTICIPATED MEDIA AND PRODUCTION COSTS BUT THE AGENCY THE SPOKESMAN SAID HASN'T PAID SOME OUTSTANDING MEDIA BILLS WE HAVE EVIDENCE THEY SPENT IT ON THINGS TOTALLY UNRELATED TO OUR ACCOUNT HE SAID HE SAID TOYOTA WON A COURT ORDER RESTRAINING THE SHOP FROM SPENDING THE ADVANCED FUNDS THE OUTSTANDING MEDIA BILLS COVER THE PERIOD FROM LATE MAY TO MIDJUNE TOYOTA SAID WHEN IT MOVED ITS ACCOUNT FROM MARTIN DAVIS OMON TO OASIS INTERNATIONAL GROUP A NEW AGENCY FORMED BY FORMER MARTIN DAVIS OMON EMPLOYEES JOANNE DAVIS MARTIN DAVIS OMON PRESIDENT DENIED THAT THE SHOP COMMITTED FINANCIAL IMPROPRIETIES OMON HAS REASON TO BELIEVE THAT THE ACTIONS OF BOTH TOYOTA AND CERTAIN FORMER EMPLOYEES OF OMON IN CONNECTION WITH THE FORMATION OF THE OASIS AGENCY WERE IMPROPER SHE SAID ADDING THAT HER SHOP IS CONSIDERING LEGAL ACTION OF ITS OWN RAND PEARSALL ONE OF THE EXECUTIVES WHO FORMED OASIS DENIED ANY IMPROPRIETIES A TOYOTA SPOKESMAN DECLINED TO SAY HOW MUCH MONEY TOYOTA HAD ADVANCED OR SEEKS IN THE SUIT THE ACCOUNT BILLED AN ESTIMATED 6 MILLION IN 1992 ACCORDING TO LEADING NATIONAL ADVERTISERS EARLIER THIS YEAR MS DAVIS AND RODD DAVIS THEN A CREATIVE DIRECTOR BOUGHT THE NEW YORK SHOP FROM ITS AUSTRALIAN PARENT AGENCY OMON MR MARTIN HAS SINCE LEFT OMON TO HEAD THE DIET COKE ACCOUNT AT INTERPUBLIC GROUP'S LINTAS ROSS ROY ROSS ROY GROUP THE BLOOMFIELD HILLS MICH AGENCY NAMED PETER MILLS CHAIRMAN AND CHIEF EXECUTIVE SUCCEEDING GLEN FORTINBERRY WHO DIED LAST MONTH OF LEUKEMIA ROSS ROY GROUP HIRED MR MILLS 54 YEARS OLD EARLIER THIS YEAR TO BE PRESIDENT AND CHIEF EXECUTIVE OF ITS ROSS ROSS INC ADVERTISING UNIT MR MILLS HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF NORTH AMERICAN OPERATIONS AT OMNICOM GROUP'S BBDO ACCOUNT J BAKER INC'S FAYVA SHOE RETAIL CHAIN BASED IN CANTON MASS TAPPED HOUSTON EFFLER & PARTNERS BOSTON TO HANDLE ITS ADVERTISING A NEW ACCOUNT WITH BILLINGS OF ABOUT 5 MILLION HOUSTON EFFLER BESTED NEW YORK AGENCIES KOREY KAY & PARTNERS AND WELLS RICH GREENE BDDP 9309030008 930903 ASIAN TINDERBOX KOREA FACEOFF GROWS TENSE AS THE ECONOMY OF NORTH DETERIORATES AMID FOOD FUEL SHORTAGES VOLATILE NEW LEADER HAS NATION ON WAR FOOTING ATTENTION BY THE PENTAGON BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL OBSERVATION PORT DORA SOUTH KOREA WHEN US DEFENSE SECRETARY LES ASPIN THIS WEEK UNVEILED A WHOLESALE SHRINKAGE OF THE POSTCOLD WAR MILITARY HE WENT OUT OF HIS WAY TO EMPHASIZE THAT HEAVY TROOP LEVELS IN KOREA WOULD BE LEFT UNTOUCHED REFERRING TO DEMONS AND DANGERS THAT STILL STALK THE WORLD JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL CITED NORTH KOREA ALONG WITH IRAQ AS PLACES WHERE THE UNITED STATES ARMED FORCE MIGHT HAVE TO GO AND FIGHT AND WIN THE WAR TALK ISN'T ALL THAT FARFETCHED NEARLY TWO MILLION SOLDIERS ARE DUG IN ON THE TWO SIDES OF THE THIN 151MILELONG DEMILITARIZED ZONE A WAR BETWEEN THE TWO SIDES WOULD IMMEDIATELY INVOLVE SOME 36000 US TROOPS STATIONED IN SOUTH KOREA FOR MOST OF THE 40 YEARS SINCE THE KOREAN WAR THE DMZ HAS BEEN FROZEN IN TIME A KIND OF MILITARY SET PIECE WHERE LITTLE SEEMED TO CHANGE BUT IN RECENT YEARS MUCH HAS CHANGED AND THE STALEMATE HAS GROWN INCREASINGLY UNSTABLE NERVOUS OFFICIALS IN THE CLINTON ADMINISTRATION IN JAPAN AND IN OTHER ASIAN COUNTRIES FEAR THIS COULD BE THE SITE OF THE WORLD'S NEXT MAJOR WAR ROOTS OF THE GROWING INSTABILITY CAN BE FOUND IN NORTH KOREA'S ECONOMY AND IN ITS POLITICAL STRUCTURE THE ECONOMY APPEARS TO BE IN ITS DEATH THROES WITH REPORTS OF HUNGER AND FREQUENT POWER BLACKOUTS AND A NEW UNTRIED LEADER KIM JONG IL HAS TAKEN OVER MUCH OF THE GOVERNMENT HE IS A VOLATILE MAN WHOSE MILITARY AND DIPLOMATIC MOVES HAVE ALREADY ALARMED THE WEST WHERE ANALYSTS BELIEVE HE IS PUSHING HARD TO COMPLETE THE DEVELOPMENT OF NUCLEAR WEAPONS AND A MISSILE CAPABLE OF CARRYING THEM TO JAPAN ALONG THE DEMARCATION LINE THE MILITARY SITUATION IS MORE TENSE THAN IT HAS EVER BEEN SAYS DR KIM KOO SUP A SOUTH KOREAN DEFENSE PLANNER NORTH KOREA'S STALINIST REGIME USED TO BE REGARDED HERE AND IN THE WEST AS MANAGEABLE BECAUSE IT DEPENDED ON STREAMS OF HEAVILY SUBSIDIZED FOREIGN TRADE WITH RUSSIA AND CHINA NO LONGER NOW WITHOUT THAT AID EXPERTS SUCH AS DR KIM BELIEVE NORTH KOREA'S NEW LEADERSHIP HAS STARTED A DICEY GAME OF USING INTERNATIONAL CRISES AS A POLITICAL SURVIVAL TOOL THEY SAY THE REGIME HAS FOCUSED THE ATTENTION OF NORTH KOREA'S 12 MILLIONMEMBER ARMY ON EXTERNAL ENEMIES TO DISTRACT IT FROM THE DISTRESS AT HOME SEVERAL YEARS OF CROP FAILURES HAVE SO DEPLETED FOOD RESERVES THAT EVEN ARMY RATIONS ARE BEING CUT THE DROP IN OIL IMPORTS FROM THE FORMER SOVIET UNION HAS CAUSED SHARP CUTBACKS IN FERTILIZER PRODUCTION NEEDED FOR NEXT YEAR'S CROP BECAUSE OF FUEL SHORTAGES PLANES RARELY FLY GOVERNMENT OFFICIALS WALK TO WORK AND AS MUCH AS 50 OF INDUSTRY HAS BEEN SHUT DOWN ACCORDING TO US ANALYSTS THE AVERAGE NORTH KOREAN NOW EATS JUST TWO SPARTAN MEALS OF RICE A DAY WHILE STATERUN TELEVISION RUNS PROGRAMS ON THE HARMFUL EFFECTS OF OVEREATING NORTH KOREANS EARN THE EQUIVALENT OF 947 A YEAR ONESEVENTH WHAT SOUTH KOREANS MAKE AND THE ECONOMIC GAP IS GROWING GEN ROBERT W RISCASSI WHO RECENTLY RETIRED AS COMMANDER IN CHIEF OF US AND SOUTH KOREAN FORCES HERE SAYS ECONOMIC CHAOS MEANS THAT NORTH KOREA COULD SLIDE INTO AN ATTACK AS AN UNCONTROLLABLE CONSEQUENCE OF TOTAL DESPERATION OR INTERNAL INSTABILITY THE CHANGES IN THE NATION'S POLITICAL STRUCTURE ARE NO LESS UNSETTLING KIM IL SUNG THE NATION'S 81YEAROLD CHARISMATIC DICTATOR HAS HELD HIS IRON GRIP SINCE 1948 AS THE ECONOMY GREW WEAKER HE DIVERTED MORE RESOURCES TO THE MILITARY THE ARMY IS NOW BELIEVED TO ABSORB MORE THAN 20 OF THE NATION'S GROSS NATIONAL PRODUCT THE MAN WHO STYLES HIMSELF AS GREAT LEADER IS NOW PREPARING FOR THE DYNASTIC SUCCESSION OF HIS SON KIM JONG IL 51 KNOWN OFFICIALLY NOW AS DEAR LEADER ACCORDING TO THE HANDFUL OF OUTSIDERS WHO HAVE TRACKED HIS CAREER DEAR LEADER IS A MAN OF MERCURIAL MOODS WHO DEVOTED HIS EARLY CAREER TO FAST CARS WOMEN AND MAKING MOVIES MORE RECENTLY THOUGH HE HAS SHIFTED HIS ATTENTION TOWARD WOOING THE LEADERSHIP OF THE ARMY LAST YEAR ACCORDING TO SOUTH KOREA'S DR KIM DEAR LEADER ELEVATED 524 NEW OFFICERS TO THE RANK OF GENERAL IN APRIL KIM JONG IL JARRED AND PUZZLED US INTELLIGENCE ANALYSTS BY MOBILIZING SOME 10000 TROOPS IN ARMORED UNITS THAT SUDDENLY APPEARED OUTSIDE THE CAPITAL PYONGYANG IT SEEMS THE DICTATOR'S SON WANTED A BIG PARADE TO CELEBRATE THE ARMY'S BIRTHDAY IT WAS AN INCONGRUOUSLY EXPENSIVE DISPLAY OF MILITARY MIGHT WHEN NORTH KOREANS ARE GOING HUNGRY KIM ILSUNG HAD A LOT OF MILITARY EXPERIENCE WHICH GAVE HIS ACTIONS A DEGREE OF STRATEGIC PREDICTABILITY HIS SON HAS HAD LITTLE BUT HE NOW HOLDS MOST OF THE HIGHEST MILITARY POSTS WE'RE NOT AS CONFIDENT AS WE USED TO BE THAT WE WILL BE ABLE TO UNDERSTAND WHAT IS HAPPENING IN THE NORTH MILITARILY SAYS ONE US OFFICIAL WHO ASKS NOT TO BE IDENTIFIED WE HAD ALWAYS ASSUMED THEY WOULDN'T MAKE DECISIONS WHIMSICALLY WHAT IS HAPPENING IN NORTH KOREA HAS IMPLICATIONS THAT GO WELL BEYOND RELATIONS WITH SOUTH KOREA THE POSSIBILITY OF INTERNAL COLLAPSE IN THE NORTH THREATENS TO BEND THE DELICATE FRAMEWORK OF ALLIANCES AND ARMSCONTROL MEASURES THAT HAS KEPT THE PEACE IN THIS AREA FOR TWO DECADES WHAT IS BELIEVED TO BE KIM JONG IL'S FIRST MAJOR MOVE ON THE INTERNATIONAL STAGE CAME IN MARCH WHEN NORTH KOREA ANNOUNCED IT WAS WITHDRAWING FROM THE NUCLEAR NONPROLIFERATION TREATY WHICH SUBJECTS ITS NUCLEAR FACILITIES TO INTERNATIONAL INSPECTION THE ACTION SINCE SUSPENDED PENDING FURTHER NEGOTIATIONS WITH THE US WAS ACCOMPANIED BY A CALL FOR MILITARY MOBILIZATION YESTERDAY THE STANDOFF EASED SOMEWHAT WHEN SOUTH KOREA ACCEPTED A NORTH KOREAN PROPOSAL FOR DIRECT TALKS OVER THE NORTH'S BREWING NUCLEAR PROGRAM REMOVING THE LAST OBSTACLE TO SENIORLEVEL NEGOTIATIONS BETWEEN PYONGYANG AND WASHINGTON PRIME MINISTER HWANG IN SUNG SUGGESTED TO HIS NORTH KOREAN COUNTERPART THAT JUNIORLEVEL OFFICIALS FROM BOTH SIDES MEET AT THE BORDER VILLAGE OF PANMUNJOM ON TUESDAY TO ARRANGE AN EXCHANGE OF ENVOYS WHICH COULD TAKE PLACE AS EARLY AS MIDSEPTEMBER IN LATE MAY NORTH KOREA FLEXED ITS MUSCLE BY TESTING A NEW MISSILE THE NODONG1 IT FLEW MORE THAN 300 MILES IN THE GENERAL DIRECTION OF TOKYO BEFORE SPLASHING DOWN IN THE SEA OF JAPAN ACCORDING TO THE CENTRAL INTELLIGENCE AGENCY THE MISSILE WHICH CAN CARRY NUCLEAR BIOLOGICAL OR CHEMICAL PAYLOADS HAS A RANGE WELL BEYOND 600 MILES JAPAN RESPONDED QUICKLY AND OMINOUSLY THAT IT MIGHT NOT BE PREPARED TO APPROVE A LENGTHY EXTENSION OF THE NUCLEAR NONPROLIFERATION TREATY THE WORLD'S MAIN LEGAL BULWARK AGAINST THE SPREAD OF NUCLEAR WEAPONS WHEN IT EXPIRES IN 1995 AS FOR SOUTH KOREA IT LAUNCHED SCIENCE1 A NEW SPACE ROCKET ON JUNE 4 THE SOUTH KOREAN GOVERNMENT SAYS THE TEST WAS TO MEASURE OZONE LEVELS OVER THE KOREAN PENINSULA BUT ROCKET AND GUIDEDMISSILE TECHNOLOGY ARE VIRTUALLY THE SAME US ANALYSTS WORRY THAT THIS MAY BE THE BEGINNING OF A NEW ARMS RACE JAPAN FEELING THREATENED BY NORTH KOREA COULD RELATIVELY QUICKLY MOUNT ITS OWN NUCLEARWEAPONS PROGRAM DRAWING ON ITS SUBSTANTIAL INDUSTRIAL BASE IN CIVILIAN NUCLEAR POWER AND SPACE ROCKETRY SOUTH KOREAN INDUSTRY COULD MOVE IN THE SAME DIRECTION WHAT SOUTH KOREA AND JAPAN DO AROUSES GREAT CONCERN IN CHINA IT'S A COMPLICATED DOMINO LOGIC SAYS ROGER MOLANDER A RAND CORP ANALYST JUST HOW FAR THEY COULD GO IS A QUESTION THAT NEEDS SOME ATTENTION NORTH KOREA'S CALL FOR WAR MOBILIZATION IN MARCH WAS OF IMMEDIATE INTEREST TO THE US ARMY'S 2ND INFANTRY DIVISION WHOSE 16000 SOLDIERS ARE ENCAMPED IN A STRING OF BASES ACROSS THE MAIN INVASION ROUTE TO SEOUL WHICH IS JUST 28 MILES FROM THE DEMILITARIZED ZONE IN MOST COUNTRIES MOBILIZING FOR WAR IS A MAJOR DISORIENTING PROCESS BUT IT DOESN'T REQUIRE MUCH OF NORTH KOREA THE COUNTRY IS ON A PERMANENT WAR FOOTING KIM NAN JIN A SHARPFEATURED MAN WHO DEFECTED FROM THE NORTH KOREAN ARMY IN 1989 AND NOW SELLS CARS IN SEOUL SAYS A CONSTANT EMPHASIS OF NORTH KOREAN TRAINING AND PROPAGANDA IS TO BE PREPARED TO CONQUER THE SOUTH WITHIN A WEEK GEN GARY E LUCK THE NEW COMMANDER OF US AND SOUTH KOREAN FORCES SAYS 65 OF NORTH KOREA'S ARMY IS NOW STATIONED WITHIN 60 MILES OF THE THIN GREEN STRIP OF LAND DIVIDING THE TWO KOREAS THE WARNING TIME YOU'LL GET FROM THE NORTH NOW WILL NOT BE A LONG ONE EXPLAINS THE GENERAL HE WORRIES THAT A LITTLE CONFRONTATION MIGHT GET STARTED AND ESCALATE INTO A FULLBLOWN THING IN THE PAST 10 YEARS NORTH KOREA HAS ALMOST DOUBLED THE SIZE OF ITS ARMY AND TRANSFORMED IT FROM A RELATIVELY STATIC LIGHTLY ARMED INFANTRY FORCE INTO A HIGHLY MOBILE TANK AND ARTILLERY OPERATION NEW HARDWARE INCLUDES PORTABLE BRIDGES AND OTHER INVASIONRELATED EQUIPMENT THAT HAS BEEN BROUGHT CLOSEO THE BORDER NORTH KOREA'S POTENTIAL TO ATTACK WITH LITTLE WARNING PRESENTS LOGISTIC AND FINANCIAL PROBLEMS FOR PENTAGON PLANNERS GEN RISCASSI ANNOUNCED LAST SPRING THAT A NEW US DEFENSE PLAN CALLS FOR A RAPID AUGMENTATION BY US FORCES AND THE ABILITY TO EMPLOY THEM IMMEDIATELY EVEN IN A RAGING BATTLE MAINTAINING HEAVY TROOP LEVELS IN KOREA STANDS OUT AS AN EXCEPTION TO THE CLINTON ADMINISTRATION'S REDUCTION OF US MILITARY PRESENCE ELSEWHERE IN THE WORLD KOREA ALSO OVERHANGS SEEMINGLY UNRELATED CRISES FOR EXAMPLE GEN RISCASSI NOTED THAT IF AMERICAN FORCES GOT PINNED DOWN ELSEWHERE IN BOSNIA FOR INSTANCE NORTH KOREA COULD SEE THIS AS AN OPPORTUNITY UNIT COMMANDERS HERE AT THE BORDER SAY THEY ARE READY FOR THE WORST THEY WON'T BLOW THROUGH HERE SAYS LT COL JACK MCDONALD WHO COMMANDS AN 800MAN US ARTILLERY BATTALION WHILE NORTH KOREA'S MASSIVE ARTILLERY FORCES OUTGUN HIM BY AS MUCH AS FIVE TO ONE COL MCDONALD SAYS HE WOULD USE COMPUTERGUIDED RADARS TO PINPOINT THE LOCATIONS OF ENEMY GUNS AND QUICKLY KNOCK THEM OUT WE HAVE PRACTICED THAT EXTENSIVELY IN SIMULATIONS HE SAYS TO THE AVERAGE SOLDIER THE PROSPECT OF FIGHTING A MAJOR WAR HERE IS HARD TO IMAGINE NORTH KOREA'S BORDERLAND APPEARS TO BE FARM COUNTRY BECAUSE MUCH OF THE ARMY'S EQUIPMENT IS HIDDEN IN TUNNELS AND CAVES SOUTH KOREA BY CONTRAST IS AN ENDLESS STRING OF TRAFFICCLOGGED HIGHRISE SUBURBS EXTENDING NORTH FROM SEOUL BUT FLASHY BILLBOARDS ARE PLASTERED ON TANK TRAPS TRUCKSIZED CHUNKS OF CONCRETE POISED TO THUNK DOWN ON MAJOR ROADS WHEN YOU FIRST GET OVER HERE YOU DON'T THINK ABOUT THE THREAT EXPLAINS PVT MATTHEW MATHIS 21 WHO SERVES IN A MORTAR UNIT THEN IT'S BROUGHT UP TO YOU THAT YOU ARE WITHIN ENEMY ARTILLERY RANGE WE HAVE TO BE READY TO GO BEFORE THE SIRENS GO OFF RESIDENTS OF SEOUL WHO LIVE WITHIN THE REACH OF NORTH KOREA'S LONGRANGE ARTILLERY ALSO FIND IT EASY NOT TO THINK ABOUT THE SITUATION SEOUL WITH ITS POPULATION OF 14 MILLION IS A BUSTLING CITY THE SIZE OF LOS ANGELES AND ITS RESIDENTS FIND WAYS TO DISMISS THE VERY POSSIBILITY OF WAR CHO SEUNG WON A 25YEAROLD COLLEGE STUDENT ADMITS THERE IS A CERTAIN AMOUNT OF WISHFUL THINKING AMONG YOUNG PEOPLE ABOUT THE BORDER SITUATION WE HAVE A TENDENCY TO THINK A WAR WON'T BREAK OUT BECAUSE WE'RE THE ONES INVOLVED HE SAYS STEVE GLAIN IN SEOUL CONTRIBUTED TO THIS ARTICLE 9309030007 930903 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 AVCO FINANCIAL SERVICES INC 200 MILLION OF NOTES DUE APRIL 1 2000 PRICED AS 55S AT 99724 TO YIELD 555 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO AVCO IS A UNIT OF TEXTRON INC FEDERAL HOME LOAN BANK SYSTEM 2132 MILLION OF NOTES DUE SEPT 9 1996 PRICED AT PAR TO YIELD 417 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF TWO BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE SEPT 13 1996 PRICED AT PAR TO YIELD 422 ACCORDING TO MCM CORPORATEWATCH THE NOTES CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF NINE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC VICTORIA FINANCIAL CORP 12 MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1601 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 67 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 179 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1602 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1993198 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS AUSTRIA SOVEREIGN 60 BILLION YEN OF 45 EUROBONDS DUE SEPT 28 2005 AT ISSUE AND REOFFER PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD BONDS YIELD 45 FEES 035 POINT BACOB OVERSEAS LTD BELGIAN PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1997 AT ISSUE AND REOFFER PRICE PAR VIA SANWA INTERNATIONAL PLC INTEREST PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 20 BASIS POINTS GUARANTOR BACOB SAVINGS BANK SC FEES 02 POINT BANCA NAZIONALE DEL LAVORO SPA HONG KONG BRANCH ITALIAN PARENT 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE OCT 14 2003 AT ISSUE AND REOFFER PRICE PAR VIA MORGAN STANLEY INTERNATIONAL NOTES ARE DEPOSITARY RECEIPTS ISSUED BY LAW DEBENTURE TRUST CORP INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR LESS 1875 BASIS POINTS MINIMUM COUPON 575 MAXIMUM 10 FEES 05 POINT BANQUE INDOSUEZ FRANCE 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE OCT 4 2005 AT ISSUE AND REOFFER PRICE 9975 VIA CREDIT SUISSE FIRST BOSTON LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR LESS 025 POINT MINIMUM COUPON 5 MAXIMUM 8 ISSUED OFF EURO MEDIUMTERMNOTE PROGRAM FEES 05 POINT CREDIT LOCAL DE FRANCE FRENCH AGENCY 15 BILLION FRENCH FRANCS OF 625 EUROBONDS DUE SEPT 27 2005 AT ISSUE AND REOFFER PRICE 9828 VIA CREDIT LYONNAIS BONDS YIELD 646 A SPREAD OF 22 BASIS POINTS ABOVE 825 FRENCH TREASURY DUE 2004 FEES 035 POINT CREDIT LOCAL DE FRANCE FRENCH AGENCY 300 MILLION OF 425 EUROBONDS DUE OCT 1 1996 AT ISSUE PRICE 1007375 VIA SAKURA FINANCE INTERNATIONAL LTD REOFFERED AT 9955 TO YIELD 4413 A SPREAD OF 18 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 POINTS CREDIT LYONNAIS FRANCE 150 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE SEPT 21 2005 AT ISSUE AND REOFFER PRICE 9975 VIA CREDIT SUISSE FIRST BOSTON LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS LESS 025 POINT SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 POINT EUROPAISCHE HYPOTHEKENBANK SA LUXEMBOURG 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE OCT 6 2000 WITH EQUITYPURCHASE WARRANTS CARRYING 275 COUPON AT PAR VIA UNION BANK OF SWITZERLAND WARRANTS EXERCISEABLE FROM OCT 6 1993 TO SEPT 4 1995 TO PURCHASE A BASKET OF SHARES INCLUDING ONE SHARE EACH OF BAYER AG BASF AG AND HOECHST AG FEES TWO POINTS ITOCHU INTERNATIONAL INC JAPANESE PARENT 10 BILLION YEN OF 375 EUROBONDS DUE MARCH 27 1997 AT ISSUE AND REOFFER PRICE 100425 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 361 ISSUED OFF EURO MEDIUMTERMNOTE PROGRAM KEEPWELL AGREEMENT WITH ITOCHU CORP FEES 0225 POINT IRISH PERMANENT BUILDING SOCIETY IRELAND 100 MILLION OF FLOATINGRATE EURONOTES DUE OCT 6 1998 AT ISSUE AND REOFFER PRICE 9968 VIA UBS LTD INTEREST PAYABLE QUARTERLY AT 30 BASIS POINTS ABOVE THREEMONTH POUND LIBOR FEES 025 POINT KFW INTERNATIONAL FINANCE DELAWARE GERMAN PARENT 150 BILLION ITALIAN LIRE OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1998 AT ISSUE PRICE 1007 VIA BANCA COMMERCIALE ITALIANA REOFFERED AT 1006 INTEREST PAYABLE QUARTERLY AT THREEMONTH LIRE LIBOR LESS 30 BASIS POINTS GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES 025 POINT PETROLEO BRASILEIRO SA BRAZIL 200 MILLION OF 75 EUROBONDS DUE SEPT 10 1996 AT ISSUE AND REOFFER PRICE 99947 VIA BEAR STEARNS INTERNATIONAL LTD BONDS YIELD 752 SEMIANNUAL A MARGIN OF 335 BASIS POINTS ABOVE THREEYEAR US TREASURY FEES 0875 POINT INTEREST PAYABLE SEMIANNUALLY SOCIETE GENERALE ACCEPTANCE NV FRENCH PARENT 500 MILLION FRENCH FRANCS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE DEC 1 2003 AT ISSUE PRICE PAR VIA SOCIETE GENERALE REOFFERED AT 994 COUPON 7 FOR FIRST NINE MONTHS PAYABLE ON SEPT 1 1994 THEREAFTER INTEREST PAYABLE QUARTERLY AT 155 MINUS 175 TIMES THREEMONTH PARIS INTERBANK OFFERED RATE FOR FRANCS GUARANTOR SOCIETE GENERALE FEES 11 POINTS 9309030006 930903 SLOWDOWN IN HONG KONG'S ECONOMY ISN'T LIKELY TO HURT CORPORATE PROFITS BY CRAIG S SMITH AND JESSE WONG STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG AFTER WEEKS OF NUMBERCRUNCHING ECONOMISTS AND ANALYSTS HERE AGREE BEIJING'S TOUGH ANTIINFLATION PROGRAM MAY DAMP HONG KONG'S OVERALL ECONOMY AS IT COOLS THE ACTION ACROSS THE BORDER BUT IT LIKELY WON'T HAVE MUCH IMPACT ON INDIVIDUAL COMPANY EARNINGS ECONOMISTS SAY BEIJING'S CAMPAIGN WILL PROBABLY HOLD HONG KONG'S ECONOMIC GROWTH THIS YEAR AND NEXT BELOW LAST YEAR'S 53 EXPANSION EVEN SO MOST ANALYSTS CONTINUE TO PREDICT BIG ANNUAL EARNINGS INCREASES FOR THE COMPANIES THEY COVER MAJOR BROKERAGE FIRMS STILL PREDICT AVERAGE PROFIT GROWTH THIS YEAR OF 16 TO 19 AND AS HIGH AS 23 NEXT YEAR COMPARED WITH 25 LAST YEAR LIKEWISE FEW COMPANIES EVEN AMONG THOSE HEAVILY DEPENDENT ON THE CHINESE MARKET THINK THEY WILL SUFFER FROM THE SLOWDOWN IN CHINA THAT THEY NONETHELESS EXPECT THE REASONS FOR THE OPTIMISM ARE MANY HONG KONG'S BIGGEST COMPANIES ARE TOO WELLDIVERSIFIED FOR A DROP IN THEIR CHINA BUSINESS TO MATTER VERY MUCH THOSE COMPANIES THAT DO DEPEND ON EXPORTS TO CHINA SAY THE MARKET IS SO VAST AND LARGELY UNTAPPED THAT THEY WON'T NOTICE ANY SLOWDOWN AND SOUTHERN CHINA THE REGION WITH WHICH HONG KONG HAS THE CLOSEST LINKS ISN'T EXPECTED TO BEAR THE FULL FORCE OF AUSTERITY HEAVYWEIGHTS SUCH AS HSBC HOLDINGS PLC'S HONGKONG & SHANGHAI BANKING CORP HUTCHISON WHAMPOA LTD SWIRE PACIFIC LTD AND WHARF HOLDINGS LTD SAY THAT CHINA REPRESENTS SUCH A SMALL PORTION OF THEIR TOTAL BUSINESS THAT EVEN A MAJOR DOWNTURN NORTH OF THE BORDER WOULD BARELY TOUCH THEIR BOTTOM LINES ADRIAN FAURE A DIRECTOR AT BARING SECURITIES HONG KONG LTD EXPECTS BUSINESS WITH CHINA TO ACCOUNT FOR ONLY 4 OF HONG KONG CORPORATE PRETAX PROFITS IN 1994 NONETHELESS MR FAURE CONTENDS THAT SOME COMPANIES HERE WILL EVENTUALLY REGISTER A NOTICEABLE IMPACT FROM ADVERSE BUSINESS CONDITIONS IN CHINA RAY FARRIS ECONOMIST AT CROSBY SECURITIES HK LTD SHARES THAT VIEW THERE ARE DEFINITELY GOING TO BE COMPANIES THAT WILL BE AFFECTED PARTICULARLY THOSE GEARED TO CHINA ON THE PROPERTY SIDE OF COURSE SOME COMPANIES ARE MORE VULNERABLE THAN OTHERS THOSE THAT SELL DIRECTLY TO CHINA'S CONSUMERS FACE THE GREATEST POTENTIAL IMPACT AS BEIJING SEEKS TO SLOW IMPORTS AFTER RUNNING UP A TRADE DEFICIT IN THE FIRST SIX MONTHS OF THE YEAR BUT EVEN COMPANIES AS CONSUMERDEPENDENT AS LUXURYGOODS DISTRIBUTORS GOLDLION HOLDINGS LTD AND WO KEE HONG HOLDINGS LTD SAY BUSINESS REMAINS BRISK AND THEY EXPECT IT TO STAY THAT WAY IF SO LARGER MOREDIVERSIFIED COMPANIES WITH SOME CHINA EXPOSURE HAVE LITTLE TO FEAR ONE POINT THAT ECONOMISTS ANALYSTS AND CORPORATE EXECUTIVES STRESS IS THAT WHILE CHINA FACES AN ECONOMIC SLOWDOWN GROWTH WILL REMAIN ROBUST CERTAINLY NO ONE PREDICTS A REPEAT OF 1989 WHEN SOCIAL UNREST AND THE IMPOSITION OF AUSTERITY POUNDED GROWTH IN GROSS DOMESTIC PRODUCT TO 43 FROM 113 THE PREVIOUS YEAR THIS TIME ROUND CHINA'S LEADERS WANT TO LOWER GDP GROWTH TO ABOUT 10 THIS YEAR AND 8 OR 9 IN 1994 FROM 128 LAST YEAR FEW ECONOMISTS EXPECT GROWTH TO COME IN BELOW THOSE TARGETS RELATIVELY SPEAKING IF '88'89 WAS A HARD LANDING FOR CHINA THEN '93'94 BY COMPARISON SHOULD BE MUCH MILDER SAYS ANDREW FRERIS CHIEF REGIONAL ECONOMIST AT SALOMON BROTHERS HONG KONG LTD ECONOMISTS SAY THE FUNDAMENTALS OF HONG KONG'S ECONOMIC RELATIONSHIP WITH CHINA HELP PROTECT IT FROM A MAINLAND DOWNTURN THE COLONY'S CHINA INVESTMENTS ARE CONCENTRATED IN THE SOUTH A REGION THAT IS LARGELY SELFFINANCED AND EXPORTORIENTED AND THUS LESS SUSCEPTIBLE TO BEIJING'S CONTROL AND THOUGH HONG KONG COMPANIES MANUFACTURE A LOT IN CHINA THEY SHIP RELATIVELY LITTLE TO THAT MARKET ABOUT 14 OF THE COLONY'S TOTAL EXPORTS ARE SOLD IN CHINA AS FINISHED GOODS MANY ECONOMISTS SAY BUSINESS GENERATED BY CONSTRUCTION OF HONG KONG'S NEW AIRPORT SHOULD FILL ANY HOLES LEFT BY A CHINA SLOWDOWN SPENDING ON THE HK164 BILLION US2117 BILLION PROJECT SHOULD PEAK IN 1994 ABOUT THE TIME CHINA'S GROWTH RATE IS EXPECTED TO BOTTOM OUT ACCORDING TO JIM WONG AN ECONOMIC ADVISER AT HONGKONG BANK IN FACT HE SAYS RENEWED SOFTNESS IN THE US ECONOMY IS A BIGGER WORRY TO HONG KONG THAN SLOWER GROWTH IN CHINA POLITICAL NOT ECONOMIC DISRUPTION POSES THE REAL DANGER TO HONG KONG ECONOMISTS SAY THE COLONY'S LAST CORPORATEEARNINGS COLLAPSE FROM 31 AVERAGE PROFIT GROWTH IN 1988 TO 3 IN 1990 RESULTED LARGELY FROM A LOSS OF POLITICAL CONFIDENCE AFTER THE TIANANMEN SQUARE KILLINGS IN JUNE 1989 TOURIST ARRIVALS IN THE COLONY WHICH WERE UP 25 IN 1988 FELL 3 IN 1989 AS A RESULT OF THE TURMOIL THIS TIME CONDITIONS POINT TO A BETTER OUTCOME BEIJING HAS ACTED MORE QUICKLY TO REIN IN THE ECONOMY THE COMMUNIST PARTY FACES NO CHALLENGES TO ITS AUTHORITY AND THE GOVERNMENT'S COMMITMENT TO ECONOMIC REFORM APPEARS FIRM BUT THE CURRENT STABILITY RESTS ON A WOBBLY FOUNDATION CHINA'S LEADERSHIP REMAINS RIVEN BY THE SAME BEHINDTHESCENES FACTIONAL MANEUVERING THAT HAS RESULTED IN CHAOS IN THE PAST AND THE LONGEVITY OF SENIOR LEADER DENG XIAOPING LOOMS OMINOUSLY OVER ALL DISCUSSION OF CHINA AT THE MOMENT WE'RE NOT SEEING A CONSERVATIVE BACKLASH AGAINST THE RAPID PACE OF REFORM BUT IF DENG DIES AND THERE IS A MAJOR POWER STRUGGLE THEN ALL BETS ARE OFF SAYS MR FAURE FOR NOW THE IMPACT OF CHINA'S AUSTERITY DRIVE ON HONG KONG'S GDP GROWTH IS EXPECTED TO BE SLIGHT IF THERE IS GOING TO BE AN EFFECT IT ISN'T YET APPARENT SAYS THE HONG KONG GOVERNMENT'S CHIEF ECONOMIST TANG KWONGYIU 9309030005 930903 SOLO SERVE AUGUST SALES ROSE SAN ANTONIO SOLO SERVE CORP SAID SALES FOR THE FOUR WEEKS ENDED AUG 28 ROSE 169 TO 164 MILLION FROM 14 MILLION A YEAR EARLIER SALES AT STORES OPEN A YEAR OR MORE DROPPED 62 THE COMPANY SAID FOR THE YEARTODATE OR FIRST 30 WEEKS SALES GREW 133 TO 972 MILLION FROM 858 MILLION A YEAR EARLIER WHILE SALES IN STORES OPEN A YEAR OR MORE DROPPED 52 THE OFFPRICE RETAILER SAID 9309030004 930903 BUSINESS BRIEF INTERNATIONALE NEDERLANDEN GROEP DUTCH CONCERN'S NET INCOME CLIMBED 89 IN FIRST HALF DUTCH BANKING AND INSURANCE CONCERN INTERNATIONALE NEDERLANDEN GROEP NV SAID ITS NET INCOME ROSE 89 IN THE FIRST HALF OF 1993 TO 897 MILLION GUILDERS 481 MILLION FROM 824 MILLION GUILDERS A YEAR EARLIER THE AMSTERDAMBASED COMPANY ALSO BOOSTED ITS INTERIM DIVIDEND BY FIVE DUTCH CENTS A SHARE OR 32 TO 160 GUILDERS AND SAID 1992 DATA ARE ADJUSTED FOR CHANGES IN ACCOUNTING PRINCIPLES THE ACCOUNTING CHANGE SUBSTANTIALLY BOOSTED OVERALL YEAREARLIER FIRSTHALF NET PROFIT FROM THE ORIGINALLY REPORTED 758 MILLION GUILDERS OR 315 GUILDERS A SHARE THE COMPANY NOTED ING CONSISTS MAINLY OF THE NETHERLANDS INSURANCE CONCERN NATIONALE NEDERLANDEN AS WELL AS THE COMMERCIAL BANK ING BANK AND ELECTRONIC AND POSTAL FINANCIAL SERVICES GROUP POSTBANK 9309030003 930903 ABBOTT LABS SETTLES FTC CASE AGREES NOT TO COLLUDE ON ADS NORTH CHICAGO ILL ABBOTT LABORATORIES TENTATIVELY SETTLED LITIGATION WITH THE FEDERAL TRADE COMMISSION OVER BABYFORMULA MARKETING BY AGREEING NOT TO COLLUDE WITH OTHER FORMULA MANUFACTURERS ABBOTT AND FTC ATTORNEYS AGREED TO THE SETTLEMENT OF CHARGES THAT THE COMPANY HAD CONSPIRED WITH OTHER BIG US INFANTFORMULA COMPANIES TO LIMIT COMPETITION BY BANNING CONSUMER ADVERTISING OF THE PRODUCT FTC COMMISSIONERS WOULD HAVE TO APPROVE THE SETTLEMENT BEFORE IT BECOMES FINAL WITHOUT ADMITTING ANY WRONGDOING ABBOTT AGREED NOT TO EXCHANGE MARKETING INFORMATION WITH OTHER BABYFORMULA COMPANIES OR TO LOBBY THEM IN EFFORTS TO PROHIBIT CONSUMER ADVERTISING ACCORDING TO PEOPLE FAMILIAR WITH TERMS OF THE STILLCONFIDENTIAL DOCUMENT BUT FOR ABBOTT THE CONSENT AGREEMENT STILL DOESN'T PUT AN END TO THE EXTENSIVE ANTITRUST LITIGATION IT HAS FACED OVER HOW IT HAS MARKETED INFANT FORMULA THE FTC STILL IS PURSUING A CIVIL LAWSUIT ALLEGING THE COMPANY FIXED PRICES ON BIDS IN PUERTO RICO TO SUPPLY FORMULA UNDER A FEDERAL NUTRITION PROGRAM FOR POOR FAMILIES ALSO NESTLE FOOD CO A UNIT OF NESTLE SA SUED ABBOTT AND THE AMERICAN ACADEMY OF PEDIATRICS EARLIER THIS YEAR FOR ALLEGEDLY CONSPIRING TO KEEP NESTLE OUT OF THE BABYFORMULA MARKET BY PREVENTING CONSUMER ADVERTISING OF FORMULA ABBOTT ALSO FACES A NUMBER OF OTHER FORMULARELATED LAWSUITS ADDITIONALLY IN MAY IT AND TWO OTHER MANUFACTURERS BRISTOLMYERS SQUIBB CO AND AMERICAN HOME PRODUCTS CORP SETTLED CONSOLIDATED FEDERAL ANTITRUST LITIGATION IN TALLAHASSEE FLA BY AGREEING TO PAY A TOTAL OF MORE THAN 230 MILLION TO DRUGSTORES SUPERMARKETS AND THE STATE OF FLORIDA 9309030002 930903 INTERNATIONAL VICKERS POSTS PROFIT FOR SIXMONTH PERIOD ITS FIRST IN THREE YEARS SPECIAL TO THE WALL STREET JOURNAL THE COMPANY REPORTED A PRETAX PROFIT OF 83 MILLION 125 MILLION VS A YEAREARLIER LOSS OF 41 MILLION IN LINE WITH ANALYSTS' STIMATES SALES FELL 54 TO 3305 MILLION FROM 3493 MILLION VICKERS SAID THE TURNAROUND LARGELY RESULTED FROM EFFORTS TO STREAMLINE OPERATIONS TO COPE WITH WEAK DEFENSE MARKETS AND SLACK DEMAND FOR ITS ROLLSROYCE AND BENTLEY AUTOMOBILES IT ALSO CITED DEBT REDUCTION FOLLOWING A 605MILLION RIGHTS ISSUE IN MARCH IT SAID THIS HELPED LOWER NET INTEREST PAYMENTS IN THE FIRST HALF VICKERS ALSO SAID RESTRUCTURING COSTS DECLINED TO 900000 FROM 17 MILLION IN THE FIRST HALF OF 1992 THESE RESULTS DEMONSTRATE THAT VICKERS IS BACK ON THE PATH TOWARD GRADUAL EARNINGS GROWTH THE COMPANY SAID IT ADDED THAT TRADING CONDITIONS REMAIN PATCHY WITH ECONOMIC UNCERTAINTY HANGING OVER SOME OF ITS MARKETS BUT IT SAID THAT BARRING A REVERSAL OF CONDITIONS PERFORMANCE DURING THE FIRST SIX MONTHS OF THE YEAR SUPPORTS THE PROSPECT OF SUSTAINED PROGRESS OVER THE REMAINING MONTHS OF THE YEAR VICKERS DIDN'T PROVIDE A DETAILED BREAKDOWN FOR EACH OF ITS MAIN OPERATING UNITS BUT IT SAID THE MOTOR CAR DIVISION REMAINS ON TARGET TO ACHIEVE BREAKEVEN DURING THE CURRENT YEAR AND REITERATED ITS UPBEAT ASSESSMENT OF EMERGING MARKETS IN CHINA AND THE FORMER SOVIET UNION VICKERS ALSO REPORTED THAT UNIT SALES OF THE ROLLSROYCE MOTOR CARS UNIT WERE UNCHANGED IN THE FIRST HALF AT 693 9309030001 930903 CACI INTERNATIONAL PLANS STOCK BUYBACK TO SETTLE LAWSUITS ARLINGTON VA CACI INTERNATIONAL INC SAID IT PLANS TO OFFER TO BUY BACK 16 MILLION OF ITS CLASS A COMMON SHARES AS PART OF A PROPOSED SETTLEMENT OF TWO SHAREHOLDER SUITS THE INFORMATION SYSTEMS COMPANY SAID IT WOULD OFFER TO BUY SHARES AT A PREMIUM OF AS MUCH AS 20 OVER AN AVERAGE CLOSING PRICE AND WOULD PAY AS MUCH AS 540 A SHARE BUT NOT LESS THAN 525 A SHARE NO SENIOR OFFICER OR DIRECTORS WOULD TENDER THEIR SHARES THE COMPANY HAS ABOUT 99 MILLION CLASS A SHARES OUTSTANDING IN OVERTHECOUNTER TRADING CACI SHARES CLOSED AT 46875 UP 1875 CENTS THE SETTLEMENT WHICH WOULD REQUIRE COURT APPROVAL ALSO CALLS FOR FOUR NEW MEMBERS TO BE NOMINATED FOR ITS SEVENMEMBER BOARD AT THIS FALL'S ANNUAL MEETING THE BOARD HAS TWO VACANCIES AND TWO MEMBERS ARE RETIRING NOMINEES WILL BE SELECTED BY NONMANAGEMENT DIRECTORS IN CONSULTATION WITH THE PLAINTIFFS THE SUITS STEMMED FROM A PURPORTED OFFER IN LATE 1990 TO PURCHASE THE COMPANY FOR 450 A SHARE THE COMPANY'S BOARD QUESTIONED THE AVAILABILITY OF FINANCING AND DIDN'T CONSIDER THE OFFER RESULTING IN THE LAWSUIT CACI ALSO IS PROPOSING TO ESTABLISH A 600000 FUND TO PAY CLAIMS OF SHAREHOLDERS WHO PURCHASED COMPANY SHARES DURING MOST OF 1990 AND WHO SOLD SHARES AT A LOSS IT ALSO WILL REIMBURSE THE PLAINTIFFS FOR THEIR REASONABLE LEGAL FEES AND EXPENSES UP TO A TOTAL OF 588000 JACK LONDON CACI CHAIRMAN AND CHIEF EXECUTIVE SAID THE OFFER IS A GOOD BUSINESS DECISION AND THE SETTLEMENT AVOIDS THE COST OF FURTHER LITIGATION THE COMPANY DIDN'T ACKNOWLEDGE ANY WRONGDOING AN OFFICIAL SAID THE COMPANY HAS FUNDS AVAILABLE TO PAY THE SETTLEMENT COSTS 9309030122 930805 REVIEW & OUTLOOK EDITORIAL SARAJEVO'S CRUX SUDDENLY IN THE DEPTHS OF AUGUST AND THE BUDGET DEBATE THE WAR IN BOSNIA HAS REACHED A CRUX THE US AND THE WEST ARE THREATENING AIR STRIKES MAYBE AFTER A FINAL NATO MEETING MONDAY BUT YESTERDAY THE SERBS THREATENED TO ISOLATE SARAJEVO AFTER TAKING POSITIONS ON STRATEGIC MOUNT IGMAN THE CITY MAY FALL BEFORE THE WEST CAN DECIDE MEANWHILE PRESIDENT CLINTON IS BUSY LOBBYING FOR HIS TAX INCREASE INVITING SENATOR DENNIS DECONCINI OF THE KEATING FIVE UP TO A SPECIALLY CONTRIVED CEREMONY AT THE WHITE HOUSE THE SECRETARY OF STATE IS TOURING THE BEKAA VALLEY IN AN ARMORED COLUMN LOOKING FOR THAT GREAT DIPLOMATIC CHIMERA THE MIDDLE EAST PEACE PROCESS THE STORIES ABOUT NEW MILITARY THREATS AGAINST THE SERBS SEEM TO QUOTE AN ASSISTANT SECRETARY OF STATE FROM BRUSSELS PLUS DEE DEE MEYERS WARNING THAT THE CLOCK IS TICKING WE WOULD CERTAINLY SUPPORT ANYTHING THAT COULD BE DONE TO HELP THE BOSNIANS WE SUPPORTED THE CLINTON ADMINISTRATION'S STRIKE ON INTELLIGENCE FACILITIES IN BAGHDAD AS A DEMONSTRATION THAT EVEN A DRAFTRESISTING PRESIDENT WOULD USE MILITARY FORCE AND THAT CRUISE MISSILES CAN DESTROY PRECISE TARGETS BUT WE HAVE TO SAY THAT SOME OF OUR MORE MILITARYMINDED FRIENDS THOUGHT THE BAGHDAD STRIKE TIMED NOT TO HURT ANY SPYS WAS MERELY DOMESTIC POLITICAL POSTURING IF THE CLINTON ADMINISTRATION SOMEHOW DECIDES TO SEND THE AIR FORCE TO SARAJEVO WE HOPE THAT IT'S PART OF SOME PLAN THAT COULD ACTUALLY MAKE A DIFFERENCE SO FAR THE WEST HAS SLIPPED FURTHER AND FURTHER INTO THIS WAR WITH NO PLAN TO BRING IT TO AN END ALBERT WOHLSTETTER TRACED THIS SORRY HISTORY ON THESE PAGES RECENTLY WARNING THAT THIS IS THE QUAGMIRE IN THIS THE BUSH ADMINISTRATION AND THE EUROPEANS BEAR THE ORIGINAL BLAME BUT IT IS NOW MR CLINTON'S WATCH MORE THAN AIR STRIKES CONTAINING SERBIAN AGGRESSION WILL REQUIRE A BASIC CHANGE IN US AND WESTERN POLICY THE OSTENSIBLE PURPOSE OF THREATENING THE SERBS IS TO ADVANCE NEGOTIATIONS AFTER ALL BUT THE NEGOTIATIONS CONSIST PRIMARILY OF SELLING OUT THE BOSNIANS SIMILARLY WE HAVE MAINTAINED AN EVENHANDED ARMS EMBARGO AGAINST AGGRESSOR AND DEFENDER ALIKE ARE WE NOW GOING TO BOMB THE SERBS IN ORDER TO PERSUADE THEM TO LET US RATIFY THEIR VICTORY OR ARE WE GOING TO WRING OUR HANDS AS THEY TAKE WHAT THEY WANT BY FORCE THE REPUBLIC OF BOSNIA AND HERZEGOVINA IS AFTER ALL A RECOGNIZED MEMBER OF THE UNITED NATIONS AS ITS AMBASSADOR MUHAMED SACIRBEY POINTED OUT IN A STATEMENT MONDAY YET HE COMPLAINED THE COCHAIRMEN OF THE NEGOTIATIONS DAVID OWEN AND THOVALD STOLTENBERG CONTINUE TO EXERT TREMENDOUS PRESSURE UPON THE BOSNIANS TO SIGN AWAY THEIR SOVEREIGNTY AND RIGHTS OF SELFDEFENSE EVEN AT THIS LATE DATE IT'S POSSIBLE TO DESIGN MILITARY MEASURES THAT WOULD MATTER NOT ONLY TAKING OUT SERBIAN ARTILLERY AROUND SARAJEVO BUT DESTROYING SERBIAN MILITARY ASSETS SUCH AS AIRPLANES THE PROBLEM IS NOT LACK OF MEANS BUT LACK OF A COGENT PLAN AND LACK OF PURPOSE BEYOND THE OBVIOUS HUMANITARIAN CONCERNS IT'S BECOMING CLEARER AND CLEARER THAT AMERICA AND THE REST OF THE WORLD DO HAVE AN INTEREST IN CONTAINING THE AGGRESSION BEING CONDUCTED BY THE SERBIAN GOVERNMENT UNDER SLOBODAN MILOSEVIC IF HE SUCCEEDS IN ANNEXING MUCH OF BOSNIA BY FORCE UNDER PRETEXT OF PROTECTING ETHNIC KINSMEN THERE IT WILL CREATE A PRECEDENT THAT COULD SPREAD IN DANGEROUS DIRECTIONS SWEDISH PRIME MINISTER CARL BILDT HAS ALREADY SOUNDED A WARNING ABOUT RUSSIAN THREATS TO ESTONIA ISSUED UNDER BORIS YELTSIN'S NAME OVER THE TREATMENT OF RUSSIANS IN WHAT THE RUSSIANS HAVE COME TO CALL THE NEAR ABROAD AND OF COURSE MR MILOSEVIC MAY NOT BE CONTENT WITH BOSNIA OR MORE PRECISELY MAY NEED CONFLICT TO KEEP HIS OWN POWER HE MAY TURN HIS AMBITIONS TO OTHER OF HIS NEIGHBORS OR TO THE ETHNIC CLEANSING OF HIS OWN MUSLIMPOPULATED PROVINCE OF KOSOVO BOSNIA MAY NOT BE THE CZECHOSLOVAKIA OF THE 1930S WHERE THE WEST SOLD OUT TO HITLER BUT IT CERTAINLY HAS THE POTENTIAL TO BECOME ANOTHER ETHIOPIA WHERE MUSSOLINI'S INVASION PROVED THAT THE LEAGUE OF NATIONS WAS FECKLESS AND AGGRESSION COULD SUCCEED PAVING THE WAY FOR BIGGER AGGRESSION AND FURTHER INSTABILITY IF WE CANNOT RALLY OURSELVES TO RELIEVE SARAJEVO WE SHOULD AT LEAST UNDERSTAND THE SPREADING CONSEQUENCES AND START TO THINK SERIOUSLY ABOUT HOW TO CONTAIN THEM SEE RELATED LETTER LETTERS TO THE EDITOR WHY THE WEST HAS FAILED IN YUGOSLAVIA WSJ SEPT 3 1993 9308050009 YY93 MM09 9309030091 930824 IN SARAJEVO FALSE ECHOES OF SPAIN BY HILTON KRAMER EARLIER ON AROUND THE TIME THAT EZRA POUND WAS EXTOLLING THE VIRTUES OF MUSSOLINI'S FASCISM ERNEST HEMINGWAY LENT HIS IMMENSE PRESTIGE TO CONCEALING THE MURDEROUS ROLE OF STALIN'S ASSASSINS IN SUBVERTING THE REPUBLICAN CAUSE IN THE SPANISH CIVIL WAR AND MORE RECENTLY AS SAVVY A WRITER AS MARY MCCARTHY LOST HER HEAD WHEN SHE WENT TO HANOI IN THE MIDST OF THE VIETNAM WAR AND FOUND IN THE COMMUNIST REGIME THERE SHE CALLED IT A VIRTUOUS TYRANNY MUCH MORE TO ADMIRE THAN SHE COULD FIND IN AMERICAN DEMOCRACY AT HOME TO THIS INGLORIOUS HISTORY OF WILLFUL SELFDECEPTION AND WANTON COMPLICITY IN EVIL POLITICS THE REDOUBTABLE SUSAN SONTAG WHO HAS LATELY TAKEN UP RESIDENCE IN BESIEGED SARAJEVO HAS CONTRIBUTED A REMARKABLE RECORD OF HER OWN NO SOONER HAD THIS WRITER MADE A NAME FOR HERSELF ON THE BASIS OF ESSAYS ON CAMP AND WHAT IN THE 1960S WAS CALLED THE NEW SENSIBILITY SUBJECTS THAT IN NO WAY QUALIFIED HER TO SPEAK ON WEIGHTY POLITICAL MATTERS THAN SHE FOLLOWED SARTRE'S HORRIBLE EXAMPLE IN DEFENDING TOTALITARIAN REGIMES IN HAVANA AND HANOI WHILE AT THE SAME TIME OF COURSE CRITICIZING THE POLICIES OF HER OWN DEMOCRATIC GOVERNMENT INDEED SHE WENT FURTHER ON ONE GHASTLY OCCASION DENOUNCING THE ENTIRE WHITE RACE IN THE PAGES OF PARTISAN REVIEW AS THE CANCER OF HUMAN HISTORY LATER TO BE SURE SHE APOLOGIZED FOR THE REMARK BUT ONLY BECAUSE SHE HAD IN THE MEANTIME BEEN STRUCK BY CANCER HERSELF AND HAD COME TO FEEL THAT SHE HAD BEEN UNFAIR ABOUT CANCER THAT IS NOT ABOUT THE WHITE RACE YOU MIGHT THINK THAT ANY INTELLIGENT PERSON WITH A SENSE OF HISTORY AND A SENSE OF SHAME WOULD HAVE LEARNED SOMETHING IF ONLY THE VIRTUES OF SILENCE FROM THIS WOEFUL CATALOG OF MISPERCEPTION MISUNDERSTANDING AND MISTAKEN STATEMENTS ABOUT THE TERRIBLE EVENTS OF OUR TIME BUT THE EGOS OF CELEBRATED WRITERS AND INTELLECTUALS BOLSTERED AS THEY ARE BY THE UNQUESTIONING ADULATION OF A PUBLIC EVEN MORE CREDULOUS THAN THEMSELVES ARE NOT EASILY HUMBLED BY THE MERE FACTS OF HISTORY THE HABIT OF ABSOLUTE MORAL CERTAINTY IN THE FACE OF DAUNTING POLITICAL COMPLEXITIES DIES HARD WITH THESE WRITERS EVEN IN SITUATIONS WHERE THEY ARE CLEARLY OUT OF THEIR DEPTH SO NOW AGAIN COMES MS SONTAG THIS TIME AMID THE HORRORS OF THE CIVIL WAR IN WHAT WAS ONCE YUGOSLAVIA TO SET AN EXAMPLE AND OFFER MORAL GUIDANCE TO THE FAINTHEARTED WRITERS AND INTELLECTUALS OF THE WEST WHOM SHE ROUNDLY ACCUSES OF A FAILURE OF CONSCIENCE FOR NOT INVOLVING THEMSELVES IN THIS TRAGIC AND INTRACTABLE CONFLICT SARAJEVO IS THE SPANISH CIVIL WAR OF OUR TIME SHE TOLD A CORRESPONDENT FOR A MAJOR AMERICAN NEWSPAPER THE OTHER DAY THUS IN A SINGLE SENTENCE BETRAYING A REMARKABLE IGNORANCE OF BOTH THE SPANISH CIVIL WAR AND THE CURRENT CIVIL WAR THAT SHE HAS COME TO OBSERVE AS A MORAL TOURIST DENOUNCING HER FELLOW WRITERS IN THE WEST FOR HAVING GOTTEN TOO RICH TO HAVE ANY CONSCIENCE AS SHE SAID IN ANOTHER NEWSPAPER LAST WEEK MS SONTAG CITES HEMINGWAY OF ALL PEOPLE AS A MODEL FOR THE WAY WRITERS SHOULD PROPERLY RESPOND TO POLITICAL CRISES OF THIS SORT YET HEMINGWAY AS WE NOW KNOW LIED A GOOD DEAL ABOUT THE SPANISH CIVIL WAR LIED OF COURSE FOR WHAT HE BELIEVED WAS A GOOD CAUSE AND NOT ONLY TO THE PUBLIC HE EVEN LIED TO HIS OLD PAL THE WRITER JOHN DOS PASSOS ABOUT THE MURDER OF THE LATTER'S FRIEND A CERTAIN PROF ROBLES WHO HAD GIVEN UP HIS TEACHING CAREER AT JOHNS HOPKINS TO SERVE THE REPUBLICAN CAUSE IN SPAIN ONLY TO FALL VICTIM TO THE STALINIST EXECUTIONERS LEST HE LIVE TO TELL THE TRUTH ABOUT THE SOVIET ROLE IN ABORTING THAT CAUSE HEMINGWAY ALSO LIED WHEN HE WROTE ABOUT THE WAR IN PRAVDA AT THE TIME AND STILL AGAIN WHEN HE RETURNED TO THE US ON A FUNDRAISING MISSION FOR THE REPUBLICAN CAUSE MS SONTAG ALSO MENTIONS SIMONE WEIL ANDRE MALRAUX AND GEORGE ORWELL AS IF THESE VERY DIFFERENT WRITERS ALL CAME TO SEE THEIR EXPERIENCES IN SPAIN AS SHE SEES THEM FOR MS SONTAG WHAT COUNTS IS NOT WHAT REALLY HAPPENED IN SPAIN BUT HER CLAIM THAT THESE AND OTHER WRITERS WENT TO SPAIN AS AN ACT OF SOLIDARITY AND FROM THAT ACT GREW SOME OF THE FINEST LITERATURE OF THEIR TIME YET ONLY A FOOL OR AN INTELLECTUAL WOULD FORM A JUDGMENT ABOUT THE USEFULNESS OF SUCH ACTS OF POLITICAL SOLIDARITY ON THE BASIS OF THE QUALITY OF THE LITERATURE THAT RESULTED FROM THEM IT CLEARLY NEVER OCCURRED TO MS SONTAG TO WONDER WHAT IF ANY CONTRIBUTION WAS MADE TO THE WELFARE OF THE SPANISH PEOPLE BY THESE WRITERS THE TRUTH IS ALAS THAT THEIR PRESENCE IN SPAIN MADE ABSOLUTELY NO DIFFERENCE TO THE OUTCOME OF THE WAR IN SPAIN AND MS SONTAG'S MUCHREPORTED MOMENT IN THE SARAJEVO LIMELIGHT WILL NOT MAKE ANY DIFFERENCE TO THE OUTCOME OF THIS WAR EITHER NO DOUBT SHE OR HER SON DAVID RIEFF WILL GET A BOOK OUT OF IT AND BE WELL PAID FOR IT TOO BUT THE OUTCOME OF THE WAR WILL NOT BE DETERMINED BY WRITERS MAKING GRAND MORAL GESTURES OR HOPING TO PRODUCE THE FINEST LITERATURE OF THEIR TIME IT WILL BE DETERMINED AS SUCH WARS ALWAYS ARE BY THE PEOPLE ON THE BATTLEFRONTS AND AT THE CONFERENCE TABLE WHO HAVE NEVER HEARD OF SUSAN SONTAG SARAJEVO IS NOT THE SPANISH CIVIL WAR OF OUR TIME IN SPAIN IN THE 1930S THERE WAS AT LEAST AN ILLUSION AMONG LIBERALS ANYWAY OF A CLEARCUT CHOICE BETWEEN GOOD AND EVIL BUT IN THE CARNAGE THAT HAS LAID WASTE TO WHAT WAS ONCE YUGOSLAVIA THERE ISN'T EVEN THE ILLUSION OF SUCH A CHOICE HORRIBLE AND IRRATIONAL CRUELTIES HAVE BEEN COMMITTED BY EVERY PARTY TO THE CONFLICT AND THERE IS NO REASON TO BELIEVE THAT AMERICAN BOMBING RAIDS WHICH MS SONTAG IS NOW CALLING FOR WILL DO ANYTHING BUT ADD TO THE BLOODSHED IN ANY CASE IT IS NOT A FAILURE OF CONSCIENCE TO BELIEVE DIFFERENTLY FROM MS SONTAG ON THE MERITS OF WESTERN INTERVENTION ONCE AGAIN SHE HAS USED HER LITERARY PRESTIGE TO INTERVENE IN A POLITICAL AND MILITARY TRAGEDY THAT LIES WELL BEYOND HER COMPETENCE MR KRAMER IS EDITOR OF THE NEW CRITERION SEE RELATED LETTERS LETTERS TO THE EDITOR SUSAN SONTAG'S MORAL OBLIGATION WSJ SEPT 3 1993 9308240059 YY93 MM09 9309020166 930902 ECONOMY CLINTON TO TALK WITH CONGRESS ON HEALTH CARE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO BEGIN CONSULTATIONS ON HIS HEALTHCARE PLAN WITH DEMOCRATIC AND REPUBLICAN MEMBERS OF CONGRESS NEXT WEEK BEFORE MAKING FINAL DECISIONS ON THE PROPOSAL HE IS TO UNVEIL LATER THIS MONTH MR CLINTON SPENT ABOUT TWO HOURS BEHIND CLOSED DOORS WITH TOP HEALTH AND ECONOMIC ADVISERS YESTERDAY DEBATING HOW QUICKLY AND TIGHTLY TO CAP PUBLIC AND PRIVATE HEALTH SPENDING UNDER HIS PLAN TO GUARANTEE HEALTH INSURANCE TO ALL AMERICANS OFFICIALS SAID NO DECISIONS WERE MADE DURING THE SESSION BUT THEY EXPECT THE PRESIDENT TO MAKE PRELIMINARY DECISIONS ON MAJOR FINANCING PROVISIONS THIS WEEK ONE OF THE ISSUES IS HOW MUCH SAVINGS CAN BE WRUNG OUT OF PUBLIC HEALTH PROGRAMS SUCH AS MEDICARE THE FEDERAL HEALTHINSURANCE PROGRAM FOR THE ELDERLY AND DISABLED AND MEDICAID THE FEDERAL STATE HEALTH PROGRAM FOR THE POOR AFRAID TO PROPOSE A BIG NEW ROUND OF TAXES AFTER LAST MONTH'S BITTER BUDGET BATTLE THE ADMINISTRATION IS LOOKING FOR WAYS TO WRING SAVINGS FROM PROJECTED SPENDING IN MEDICARE AND MEDICAID TO FINANCE PARTS OF THE PLAN THE PRESIDENT HOWEVER IS CONSIDERING PROPOSING BETWEEN 10 BILLION AND 20 BILLION IN INCREASED EXCISE TAXES ON CIGARETTES AND ALCOHOLIC BEVERAGES BUT OFFICIALS STRESSED YESTERDAY THAT THEY WILL RECHANNEL MEDICARE SAVINGS TO PAY FOR EXPANDING MEDICARE BENEFITS SUCH AS ADDING A PRESCRIPTIONDRUG BENEFIT TO THE PROGRAM AND ESTABLISHING A NEW LONGTERMCARE PLAN AND NOT TO PAY FOR HEALTH INSURANCE FOR NONELDERLY PEOPLE ONE OFFICIAL SAID THAT IRA MAGAZINER THE WHITE HOUSE AIDE RUNNING THE HEALTHCARE EFFORT HAS PRESENTED OPTIONS RANGING FROM SQUEEZING 240 BILLION OUT OF MEDICARE AND MEDICAID OVER FIVE YEARS TO SOMETHING CLOSER TO 100 BILLION OFFICIALS STRESS THAT THEY ARE ALSO PLANNING TO SLOW PRIVATE HEALTH SPENDING THROUGH LIMITS ON THE RATE OF INCREASE IN HEALTHINSURANCE PREMIUMS AND A VARIETY OF OTHER MEASURES BUT SOME OFFICIALS ARE ARGUING THAT PUBLIC HEALTH PROGRAMS CAN'T BE SLOWED AS FAST AS THE PRIVATE SECTOR BECAUSE THERE IS MORE EXCESS IN PRIVATE HEALTH SPENDING YESTERDAY'S MEETING WAS THE PRESIDENT'S SECOND MAJOR HEALTHCARE SESSION IN TWO DAYS AND FOLLOWED A MEETING OF MORE THAN THREE HOURS TUESDAY ANOTHER MEETING IS PLANNED FOR TODAY ACCORDING TO ONE OFFICIAL 9309020165 930902 DOW JONES EQUITY MARKET INDEX NEW YORK COLUMBIA HEALTHCARE CORP WAS SUBSTITUTED FOR GALEN HEALTH CARE INC IN THE HEALTH CARE INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX THE CHANGE EFFECTIVE YESTERDAY REFLECTS THE MERGER OF GALEN HEALTH CARE AND COLUMBIA HOSPITAL CORP TO BECOME COLUMBIA HEALTHCARE 9309020164 930902 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AN AUCTION 220 BILLION CANADIAN DOLLARS US167 BILLION OF 625 BONDS DUE SEPT 15 1995 AT AN AVERAGE YIELD OF 5562 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9309020163 930902 WHO'S NEWS FIRST AMERICAN FINANCIAL CORP FIRST AMERICAN FINANCIAL CORP SANTA ANA CALIF THOMAS A KLEMENS WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS REAL ESTATE FINANCIAL SERVICES CONCERN SUCCEEDING JACK H DERLOSHON 64 YEARS OLD WHO RETIRED MR KLEMENS 43 PREVIOUSLY WAS VICE PRESIDENT AND CONTROLLER OF THE COMPANY 9309020162 930902 WHO'S NEWS CHART HOUSE ENTERPRISES INC CHART HOUSE ENTERPRISES INC SOLANA BEACH CALIF HARRY ROBERTS VICE PRESIDENT OF STARBUCKS COFFEE CO WAS ELECTED A DIRECTOR OF THIS RESTAURANT OPERATOR THE ELECTION OF MR ROBERTS 51 YEARS OLD INCREASES THE SIZE OF THE BOARD TO SEVEN 9309020161 930902 MICHAELS STORES SALES UP IRVING TEXAS MICHAELS STORES INC SAID SALES IN AUGUST ROSE 25 TO 375 MILLION FROM 30 MILLION A YEAR AGO SALES IN STORES OPEN A YEAR OR MORE ROSE 5 THE ARTS AND CRAFTS CHAIN SAID DESPITE NO INCREASE IN ADVERTISING 9309020160 930902 DIVIDEND NEWS STANLEY WORKS STANLEY WORKS NEW BRITAIN CONN ANNOUNCED A 3 INCREASE IN ITS REGULAR QUARTERLY DIVIDEND TO 34 CENTS PER SHARE PAYABLE SEPT 30 TO SHAREHOLDERS OF RECORD SEPT 13 STANLEY IS A TOOL AND HARDWARE MAKER 9309020159 930902 ACME METALS LABOR ACCORD RIVERDALE ILL ACME METALS INC SAID IT REACHED A TENTATIVE SIXYEAR PACT WITH THE UNITED STEELWORKERS UNION THAT CONTAINS A NOSTRIKE PROVISION AND A WAGE REOPENER AFTER THREE YEARS SUBJECT TO ARBITRATION THE ACCORD IS SUBJECT TO RATIFICATION BY THE COMPANY'S 1500 EMPLOYEES AT ACME STEEL CO AND ACME PACKAGING CORP IN THE CHICAGO AREA FURTHER DETAILS WEREN'T RELEASED THE AGREEMENT FOLLOWS AN EIGHTHOUR EXTENSION OF THE PREVIOUS CONTRACT 9309020158 930902 WHO'S NEWS MEDUSA CORP MEDUSA CORP CLEVELAND DANIEL E SOMES 58 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WILL TAKE AN EARLY RETIREMENT FROM THIS MAKER AND MARKETER OF CEMENTS AGGREGATES AND INDUSTRIAL LIMESTONE PRODUCTS EFFECTIVE DEC 31 AT THAT TIME HE WILL BE SUCCEEDED BY GEORGE E UDING JR FORMERLY PRESIDENT OF THE CEMENT GROUP OF ESSROC CORP AND CHIEF EXECUTIVE OF SEVERAL ESSROC AFFILIATES ESSROC IS A UNIT OF CIMENTS FRANCAIS PARIS MR UDING WILL JOIN MEDUSA OCT 1 THE COMPANY SAID MEDUSA ALSO PROVIDES CONSTRUCTION SERVICES FOR HIGHWAY SAFETY 9309020157 930902 INTERNATIONAL KANEBO SLATES CHINESE VENTURE TOKYO KANEBO LTD A JAPANESE TEXTILE COMPANY PLANS TO SET UP A VENTURE IN CHINA WITH A CHINESE COMPANY TO MAKE SILK YARN FOR EXPORT MOSTLY TO EUROPE SHANGHAI HUAZONG SPUN SILK PRODUCTS CO WILL HAVE CAPITAL OF 650 MILLION YEN 62 MILLION WITH KANEBO AND A SUBSIDIARY HOLDING A 50 STAKE WHILE SHANGHAI SPUN SILK SPINNING & WEAVING MILL WILL HOLD THE OTHER 50 9309020156 930902 INTERNATIONAL MALAYSIAN INFLATION RATE KUALA LUMPUR MALAYA MALAYSIA'S OFFICIAL CONSUMER INFLATION MEASURE SHOWED PRICES IN JULY 36 HIGHER THAN IN JULY 1992 REGISTERING A MODEST RISE FROM THE 34 YEARONYEAR INFLATION RATE RECORDED IN JUNE THE GOVERNMENT STATISTICS DEPARTMENT REPORTED 9309020155 930902 PILLSBURY SLATES PURCHASE MINNEAPOLIS THE PILLSBURY CO UNIT OF GRAND METROPOLITAN PLC SAID IT WILL ACQUIRE A 49 STAKE IN PACIFIC STAR DE OCCIDENTE A DISTRIBUTOR OF FROZEN AND REFRIGERATED PRODUCTS IN MEXICO TERMS WEREN'T DISCLOSED BY PILLSBURY A FOODS CONCERN 9309020154 930902 DANKA BUSINESS SYSTEMS ST PETERSBURG FLA DANKA BUSINESS SYSTEMS PLC SAID IT IS ACQUIRING THE ASSETS OF A LOS ANGELESBASED FACSIMILEEQUIPMENT BUSINESS FOR 332 MILLION DANKA IS BUYING THE ASSETS OF OMNIFAX FROM TELAUTOGRAPH CORP A SUBSIDIARY OF ARDEN GROUP INC 9309020153 930902 WHO'S NEWS INFORMATION INTERNATIONAL INC INFORMATION INTERNATIONAL INC CULVER CITY CALIF THIS MAKER OF VISUAL INFORMATION PROCESSING EQUIPMENT NAMED RALPH S ROTH 66 YEARS OLD CHAIRMAN MR ROTH HAD SERVED ON THE BOARD SINCE 1990 HE HAD BEEN VICE PRESIDENT TECHNOLOGY OF KNIGHTRIDDER INC FROM 1979 THROUGH MAY 1989 AND PRESIDENT OF THE DETROIT FREE PRESS FROM 1977 UNTIL 1979 MOST RECENTLY HE WAS A CONSULTANT TO VARIOUS COMPANIES MR ROTH SUCCEEDS ALFRED L FENAUGHTY 67 WHO RETIRED IN JUNE 9309020152 930902 INTERNATIONAL JAPANESE VEHICLE SALES OFF TOKYO JAPAN'S SALES OF NEW CARS TRUCKS AND BUSES AS MEASURED BY REGISTRATIONS FELL 87 IN AUGUST FROM THE YEAREARLIER MONTH TO 263544 UNITS MARKING THE FIFTH CONSECUTIVE MONTH OF YEARONYEAR DECLINES THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION SAID 9309020151 930902 WHO'S NEWS CRAY RESEARCH INC CRAY RESEARCH INC EAGAN MINN DANIEL F AKERSON 44 YEARS OLD RESIGNED AS A DIRECTOR AFTER BEING NAMED CHIEF EXECUTIVE OFFICER AT GENERAL INSTRUMENT CORP A CABLE AND SATELLITE TELEVISION EQUIPMENT CONCERN IN CHICAGO MR AKERSON WHOSE DEPARTURE LEAVES THE BOARD WITH SIX MEMBERS RESIGNED TO WORK FULLTIME AT HIS NEW POSITION CRAY SAID MR AKERSON SERVED ON THE BOARD FOR ONE YEAR CRAY SAID THE BOARD VACANCY WILL BE FILLED BY ANOTHER OUTSIDE DIRECTOR 9309020150 930902 GORE TASK FORCE CONSIDERS PLAN TO LET FIRMS DO THEIR OWN SAFETY INSPECTIONS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE TASK FORCE FOR REINVENTING GOVERNMENT IS CONSIDERING A PLAN TO LET COMPANIES POLICE THEMSELVES FOR HEALTH AND SAFETY IN LIEU OF THE CURRENT SYSTEM OF GOVERNMENT INSPECTIONS THE IDEA IS REMINISCENT OF THE DEREGULATORY 1980S UNION OFFICIALS AND CORPORATE HEALTH AND SAFETY LAWYERS CONTEND WHEN PRESIDENT REAGAN ATTEMPTED TO HAVE COMPANIES STEP UP THEIR OWN ENFORCEMENT OF SAFETY REQUIREMENTS THAT PROGRAM FAILED AND HAS SINCE BEEN REPLACED WITH MORE INSPECTORS AND TOUGHER FINES UNDER A DRAFT OF THE REINVENTINGGOVERNMENT PLAN THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION WOULD GIVE EMPLOYERS TWO OPTIONS FOR CERTIFIED SELFINSPECTIONS THE FIRST OPTION WOULD LET COMPANIES HIRE THIRD PARTIES SIMILAR TO OUTSIDE FINANCIAL AUDITORS TO CONDUCT INSPECTIONS ALTERNATIVELY THE COMPANIES COULD AUTHORIZE EMPLOYEES AFTER TRAINING AND CERTIFICATION TO DO INSPECTIONS OSHA WOULD SET INSPECTION AND REPORTING STANDARDS AND CONDUCT RANDOM REVIEWS AUDITS AND INSPECTIONS TO ENSURE QUALITY A LABOR DEPARTMENT SPOKESWOMAN SAID THE PLAN IS ONLY IN DRAFT FORM AND COULD BE CHANGED BY THE TIME IT IS RELEASED NEXT TUESDAY ANOTHER PART OF THE DRAFT RECOMMENDS ELIMINATING THE AGRICULTURE DEPARTMENT'S FOOD SAFETY AND INSPECTION SERVICE AND CONSOLIDATING ALL FOODSAFETY REGULATION AT THE FOOD AND DRUG ADMINISTRATION CURRENTLY THE AGRICULTURE DEPARTMENT HAS RESPONSIBILITY FOR RAW MEAT POULTRY AND EGGS BEFORE THEY ARE GRADED WHILE THE FDA HANDLES EVERYTHING ELSE INCLUDING SEAFOOD AND PROCESSED FOODS THE AIM WOULD BE TO CREATE A UNIFORM SYSTEM FOR INSPECTION AND ENFORCEMENT THE CHANGE PROBABLY WOULD PLEASE CONSUMER GROUPS SOME OF WHICH HAVE PUSHED FOR IT FOR YEARS BUT THE CHANGE WOULD BE VIGOROUSLY OPPOSED BY THE MEAT INDUSTRY AMONG OTHERS ADDITIONAL DETAILS EMERGED AS THE ADMINISTRATION PREPARED TO RELEASE THE FINAL REPORT IMPLEMENTATION OF THE REPORT'S FINDINGS ACCORDING TO TENTATIVE WHITE HOUSE CALCULATIONS WOULD YIELD SAVINGS TOTALING AS MUCH AS 121 BILLION OVER FIVE YEARS OF THAT AGENCYSPECIFIC SAVINGS ARE ESTIMATED AT 26 BILLION AND ADDITIONAL SAVINGS IN BROAD GOVERNMENTWIDE AREAS SUCH AS PERSONNEL ARE ESTIMATED AT 72 BILLION TO 95 BILLION THESE NUMBERS DON'T REFLECT FINAL REVIEW BY THE WHITE HOUSE BUDGET OFFICE HOWEVER WHICH IS EXPECTED TO LOWER THE SAVINGS ESTIMATE SOMEWHAT THE PLAN IS EXPECTED TO SHARPLY INCREASE THE WHITE HOUSE'S PLEDGE TO REDUCE EXECUTIVEBRANCH PERSONNEL ACCORDING TO AN ADMINISTRATION OFFICIAL THE REPORT'S FINDINGS WILL REDUCE THE FEDERAL WORK FORCE BY AN ADDITIONAL 180000 ON TOP OF THE 100000 PRESIDENT CLINTON ALREADY HAS PROMISED TO CUT IT ISN'T CLEAR HOW THE ADDITIONAL REDUCTIONS WOULD BE ACCOMPLISHED UNDER THE REVAMPED OSHA PLAN THE AGENCY WOULD ESTABLISH A SLIDING SCALE OF INCENTIVES DESIGNED TO ENCOURAGE WORKPLACES TO COMPLY WORKSITES WITH GOOD HEALTH AND SAFETY RECORDS WOULD BE ALLOWED TO REPORT LESS FREQUENTLY TO THE LABOR DEPARTMENT UNDERGO FEWER AUDITS AND SUBMIT LESS PAPERWORK CONVERSELY COMPANIES WHOSE SAFETY RECORDS WORSEN OR DON'T IMPROVE WOULD FACE HIGHER FINES THE DRAFT PROPOSES OFFICIALS OF ORGANIZED LABOR HAVE COMPLAINED FOR YEARS ABOUT THE LACK OF INSPECTIONS AT US COMPANIES OSHA HAS AN ANNUAL BUDGET OF LESS THAN 300 MILLION ABOUT 5 THAT OF THE ENVIRONMENTAL PROTECTION AGENCY AND MANY COMPANIES ARE NEVER INSPECTED STILL THE PLAN DRAFTED BY THE TEAM HEADED BY VICE PRESIDENT AL GORE LOOKS LIKE IT COMES FROM SOMEONE WHO KNOWS NOTHING ABOUT SAFETY AND HEALTH AND NOTHING ABOUT THE OSHA PROGRAM FUMED MARGARET SEMINARIO DIRECTOR OF SAFETY AND HEALTH AT THE AFLCIO IF WE'VE LEARNED ANYTHING WE'VE LEARNED THAT GOVERNMENT NEEDS TO TAKE A MORE ACTIVE ROLE IN THE SAFETY OF THE WORKPLACE GEORGE SALEM AN OSHA OFFICIAL IN THE REAGAN ADMINISTRATION AGREES THAT THE PLAN ISN'T LIKELY TO WORK IT FITS IN THEORY WITH THE CONCEPTS OF VOLUNTARY COMPLIANCE WHICH THE REAGANBUSH ERA SO STRONGLY ADVOCATED HE NOTED BUT IN THE OSHA ARENA WE FOUND IT DIDN'T WORK UNDER THE REAGAN REGIME OSHA DECIDED TO RELY MORE HEAVILY ON CORPORATE LOGS OF INJURY RATES BUT MR SALEM SAYS WE FOUND EMPLOYERS LIED ON THOSE SO WE HAD TO START UP HUGE FINES FOR RECORDKEEPING VIOLATIONS CONGRESS CURRENTLY IS WORKING ON REFORMING THE NATION'S SAFETY AND HEALTH LAWS WHICH HAVE REMAINED BASICALLY UNCHANGED SINCE THE OCCUPATIONAL SAFETY AND HEALTH ACT WAS PASSED IN 1970 A MAJOR SECTION OF THE LEGISLATION PENDING ON CAPITOL HILL WOULD FORCE ANY COMPANY WITH 11 OR MORE EMPLOYEES TO SET UP WORKERMANAGEMENT TEAMS TO PREVENT INJURIES IN THE WORKPLACE THE LEGISLATION WHICH FACES SIGNIFICANT REPUBLICAN OPPOSITION IN ITS CURRENT FORM ALSO WOULD REQUIRE OSHA TO SET UP A HEIGHTENED INSPECTION PROGRAM FOR HIGHRISK INDUSTRIES STEP UP CRIMINAL PENALTIES FOR WILLFUL SAFETY VIOLATIONS THAT CAUSE DEATHS AND REQUIRE COMPANIES TO CREATE HEALTH AND SAFETY PROGRAMS TO REDUCE DEATHS AND INJURIES AT LEAST ONE OF THE VICE PRESIDENT'S EXPECTED PROPOSALS THAT THE NATION'S AIR TRAFFIC CONTROL SYSTEM BE PRIVATIZED IS MEETING WITH SKEPTICISM FROM WITHIN THE BUREAUCRACY TRANSPORTATION DEPARTMENT OFFICIALS SAID MANY DETAILS STILL NEED TO BE WORKED OUT SUCH AS WHO WOULD BEAR LIABILITY AND HOW THE NEW CORPORATION WOULD WORK WITH MILITARY AIRPLANES THE DETAILS THEY SAY MAY MAKE THE PROPOSAL UNWORKABLE DAVID HINSON PRESIDENT CLINTON'S NEW DIRECTOR OF THE FEDERAL AVIATION ADMINISTRATION SAID YESTERDAY I THINK WE OUGHT TO DO A RIGOROUS ACADEMIC ANALYSIS OF THE PRIVATIZATION PROPOSAL BEFORE COMMITTING TO IT SUCH A STUDY HE SAID COULD TAKE FOUR MONTHS TIMOTHY NOAH AND ROSE GUTFELD CONTRIBUTED TO THIS ARTICLE 9309020149 930902 DIGITAL MICROWAVE PLANS VENTURE SAN JOSE CALIF DIGITAL MICROWAVE CORP A MAKER OF COMMUNICATIONS PRODUCTS SAID IT PLANS TO FORM A JOINT VENTURE WITH SHENZEN SED TELECOMMUNICATIONS CO LTD OF CHINA FOR THE SALES PRODUCTION AND MAINTENANCE OF DIGITAL MICROWAVE TRANSMISSION SYSTEMS IN CHINA 9309020148 930902 WHO'S NEWS CHICO'S FAS INC CHICO'S FAS INC FORT MYERS FLA JEFFREY J ZWICK WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS SPECIALTY RETAILER MR ZWICK 46 YEARS OLD WHO IS ALREADY PRESIDENT SUCCEEDS MARVIN J GRALNICK 58 WHO WILL REMAIN CHAIRMAN THE COMPANY ALSO SAID THAT BARRY E SZUMLANSKI CURRENTLY EXECUTIVE VICE PRESIDENT OF OPERATIONS WAS NAMED TO THE ADDITIONAL POSTS OF CHIEF OPERATING OFFICER AND VICE CHAIRMAN OF THE BOARD 9309020147 930902 INTERNATIONAL MICHELIN PLANS PRICE BOOST PARIS FRENCH TIRE MAKER MICHELIN SA SAID IT WILL MATCH PRICE INCREASES IN TIRES ANNOUNCED LAST WEEK BY ITS GERMAN COMPETITOR CONTINENTAL AG UNIQUELY IN THE GERMAN MARKET A MICHELIN SPOKESMAN GAVE NO FURTHER DETAILS ON PRICING PLANS CONTINENTAL HAD ANNOUNCED THAT BEGINNING OCT 1 IT WOULD RAISE PRICES ON ALL ITS BRANDNAME AUTO TIRES BY 7 MICHELIN HASN'T INDICATED ITS PRICING PLANS IN OTHER MARKETS 9309020146 930902 FINANCING BUSINESS MINNESOTA POWER & LIGHT CO MINNESOTA POWER & LIGHT CO DULUTH MINN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF ONE MILLION COMMON SHARES PROCEEDS WOULD BE USED TO FINANCE THE UTILITY'S EQUITY CONTRIBUTION TO A SCRAPPAPER RECYCLING PLANT AND FOR OTHER CORPORATE PURPOSES 9309020145 930902 INTERNATIONAL SOUTH KOREAN TRADE ACCOUNT SEOUL SOUTH KOREA SOUTH KOREA'S TRADE ACCOUNT SWUNG TO A 46 MILLION DEFICIT IN AUGUST FROM A 102 MILLION SURPLUS IN THE YEARAGO MONTH BECAUSE OF LOWERTHANEXPECTED EXPORTS THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID IN A PRELIMINARY REPORT THE MINISTRY SAID THAT EXPORTS ROSE 57 TO 653 BILLION IN AUGUST FROM 618 BILLION IN JULY IMPORTS HAD AN 82 RISE TO 657 BILLION FROM 608 BILLION 9309020144 930902 CONCORD TO DISTRIBUTE FIRST MUTUAL FUNDS FROM CONTINENTAL BANK NEW YORK MUTUAL FUND ADMINISTRATOR CONCORD HOLDING CORP SAID IT WILL DISTRIBUTE A FAMILY OF MUTUAL FUNDS THE FIRST MANAGED BY CONTINENTAL BANK OF CHICAGO NAMED THE 231 FUNDS FOR THE BANK'S ADDRESS ON SOUTH LASALLE STREET THE FUNDS TARGET INSTITUTIONAL CLIENTS AND HAVE ABOUT 600 MILLION IN ASSETS CONCORD ADMINISTERS MORE THAN 34 BILLION IN MUTUAL FUND ASSETS FEDERAL BANKING LAWS LIMIT BANKS' INVOLVEMENT IN SELLING SECURITIES THUS THIRDPARTY FIRMS SUCH AS CONCORD DISTRIBUTE AND ADMINISTER MUTUAL FUNDS WHILE BANKS MAKE INVESTMENT DECISIONS 9309020143 930902 INTERNATIONAL WICKES PLC PLANS RIGHTS ISSUE LONDON BUILDING MATERIALS CONCERN WICKES PLC PLANS TO RAISE 581 MILLION 866 MILLION THROUGH A RIGHTS ISSUE THE COMPANY SAID THE RIGHTS ISSUE WOULD BE ON THE BASIS OF TWO NEW ORDINARY SHARES FOR EVERY NINE ORDINARY SHARES OR WARRANTS ALREADY HELD WICKES WILL ISSUE AROUND 689 MILLION NEW SHARES AT 88 PENCE 131 A SHARE 9309020142 930902 LCI PACT HELPS TRZ DELIVER SPORTS EVENTS ON PAYTOLISTEN BASIS DUBLIN OHIO A NEW ARRANGEMENT BETWEEN LCI INTERNATIONAL INC AND TRZ COMMUNICATIONS SERVICES WILL ENHANCE TRZ'S DELIVERY OF PAYTOLISTEN AUDIO BROADCASTS OF SPORTING EVENTS OF PROFESSIONAL AND COLLEGIATE TEAMS THE AGREEMENT WILL ALLOW CALLERS TO CLOSELY HELD TRZ TO DIAL A TOLLFREE NUMBER TO LISTEN TO GAMES PLAYED BY 300 TEAMS FOR EXAMPLE A LOS ANGELES RESIDENT WHO WANTS TO TUNE INTO THE PRINCETONYALE FOOTBALL GAME CAN SIMPLY DIAL HER PHONE WE'RE THE ESPN OF RADIO SAYS THOMAS ZAWISTOWSKI FOUNDER AND PRESIDENT OF TRZ IN AKRON OHIO GAMES PLAYED BY ABOUT 100 COLLEGES AS WELL AS PROFESSIONAL FOOTBALL HOCKEY AND BASKETBALL TEAMS ARE AVAILABLE PROFESSIONAL BASEBALL FANS HOWEVER HAVE JUST ONE CHOICE THE CLEVELAND INDIANS DUE TO THE DIFFICULTY OF GETTING CONTRACTS WITH TEAMS THE COMPANY PAYS TEAMS A PERCENTAGE OF ITS REVENUE TRZ HAS GUARANTEED LCI A TELECOMMUNICATIONS COMPANY THAT IT WILL PAY A MINIMUM OF 1 MILLION OVER THREE YEARS TO LCI FOR USE OF ITS TELECOMMUNICATIONS LINES PREVIOUSLY THE TELECOMMUNICATIONS WERE HANDLED BY MCI COMMUNICATIONS TRZ SAID IT HAS HAD ABOUT 300000 CALLERS TO DATE WHOSE AVERAGE LENGTH WAS 52 MINUTES CALLERS ARE CHARGED 16 CENTS TO 50 CENTS A MINUTE WITH RATES DECLINING THE LONGER THEY SPEND ON THE LINE A THREEHOUR GAME WOULD RUN ABOUT 36 AND BE BILLED TO A CREDIT CARD WITH NO CHARGE FOR THE PHONE CALL MR ZAWISTOWSKI SAID THE COMPANY IS BUILDING A NETWORK TO DELIVER VIDEO FOOTAGE OF GAMES AS WELL VIA TWISTED PAIR WIRING WHICH HE EXPECTS MAY BE FEASIBLE IN TWO YEARS HE TAKES ISSUE WITH CABLE COMPANY EXECUTIVES WHO BOAST THAT THEY WILL SOON BE ABLE TO DELIVER 500 CHANNELS THERE'S NOT A HUMAN ON THIS PLANET THAT WANTS 500 CHANNELS ON CABLE NOBODY WANTS 499 BAD CHOICES WHAT YOU WANT IS ONE CHANNEL THAT HAS SOMETHING YOU WANT TO WATCH 9309020141 930902 RICHTON TO BUY CENTURY SUPPLY MADISON NJ RICHTON INTERNATIONAL CORP SAID IT AGREED TO ACQUIRE CENTURY SUPPLY CORP A CLOSELY HELD DISTRIBUTOR OF SPRINKLER IRRIGATION OUTDOOR LIGHTING AND OTHER PRODUCTS TERMS WEREN'T DISCLOSED CENTURY WITH REVENUE OF MORE THAN 40 MILLION IS BASED IN MADISON HEIGHTS MICH RICHTON WHICH SOLD ITS MAIN JEWELRY BUSINESS LAST YEAR IS A HOLDING COMPANY 9309020140 930902 WHO'S NEWS SERVICEMASTER LP SERVICEMASTER LP DOWNERS GROVE ILL CARLOS H CANTU 59 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING C WILLIAM POLLARD WHO REMAINS CHAIRMAN OF THIS CLEANING AND UPKEEP SERVICES CONCERN MR CANTU WILL CONTINUE TO HEAD THE COMPANY'S CONSUMER SERVICES UNIT 9309020139 930902 HELEN OF TROY BUYBACK EL PASO TEXAS HELEN OF TROY CORP SAID IT WILL REPURCHASE AS MANY AS ONE MILLION SHARES OF ITS COMMON UNDER A NEW PROGRAM THE PERSONALCARE PRODUCTS CONCERN SAID IT CONSIDERS ITS STOCK UNDERVALUED AND A GOOD INVESTMENT THERE ARE ABOUT 69 MILLION SHARES OUTSTANDING 9309020138 930902 WHO'S NEWS INGERSOLLRAND TAPS PERRELLA AS SUCCESSOR TO CHAIRMAN BLACK WOODCLIFF LAKE NJ INGERSOLLRAND CO NAMED JAMES E PERRELLA AS THE SUCCESSOR TO ITS CHAIRMAN AND CHIEF EXECUTIVE THEODORE H BLACK WHO WILL RETIRE IN OCTOBER WHEN HE TURNS 65 THE MANDATORY RETIREMENT AGE MR PERRELLA 58 WAS TAPPED AS MR BLACK'S HEIR APPARENT LAST SEPTEMBER WHEN HE WAS NAMED PRESIDENT A TITLE THAT HE WILL RETAIN WHEN HE ASSUMES THE NEW POSTS ON NOV 1 HE WASN'T AVAILABLE FOR COMMENT AN EXECUTIVE VICE PRESIDENT SINCE 1982 MR PERRELLA HAS HEADED SOME OF THE COMPANY'S MAIN OPERATING UNITS INCLUDING THE TORRINGTON BEARINGS AND COMPONENTS GROUP THE AIRCOMPRESSOR DIVISION AND THE PUMP DIVISION THE 38 BILLION COMPANY WHICH ALSO MAKES CONSTRUCTION EQUIPMENT AND PRECISION PARTS FOR THE AUTO INDUSTRY HAS A TRADITION OF PROMOTING FROM WITHIN 9309020137 930902 CANADIAN MARKET PULP OUTPUT ROSE IN JULY MONTREAL CANADIAN PRODUCTION OF MARKET PULP ROSE 36 IN JULY FROM A YEAR EARLIER WHEN A STRIKE AT BRITISH COLUMBIA MILLS DEPRESSED OUTPUT THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 600000 METRIC TONS OF MARKET PULP IN JULY UP FROM 442000 METRIC TONS A YEAR EARLIER A METRIC TON EQUALS 220462 POUNDS THE INDUSTRY'S OPERATING RATE FOR JULY WAS 86 UP FROM 65 THE ASSOCIATION REPORTED TOTAL MARKET SHIPMENTS FOR THE MONTH ROSE 37 TO 567000 METRIC TONS FROM 415000 METRIC TONS SHIPMENTS TO THE US ROSE 10 TO 187000 METRIC TONS WHILE SHIPMENTS TO WESTERN EUROPE ROSE 38 TO 163000 METRIC TONS SHIPMENTS TO JAPAN MORE THAN DOUBLED TO 75000 METRIC TONS FROM 36000 A YEAR EARLIER WITHIN CANADA SHIPMENTS ROSE 15 TO 68000 METRIC TONS CANADIAN PRODUCER INVENTORIES AT THE END OF JULY WERE 784000 METRIC TONS A 42DAY SUPPLY COMPARED WITH 751000 METRIC TONS A 39DAY SUPPLY IN JUNE THE ASSOCIATION SAID INVENTORIES IN JULY 1992 WERE 390000 METRIC TONS A 23DAY SUPPLY MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS THE STATISTICS EXCLUDE PULP CONSUMED AT THE PRODUCING MILL OR SHIPPED TO ANOTHER MILL THAT IS AFFILIATED WITH THE PRODUCING MILL 9309020136 930902 POLITICS & POLICY US WITH 5000 TROOPS IN SOMALIA IS FINDING IT TOUGH TO FIND WAY OUT BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR US POLICY PLANNERS THE PRESENCE OF ALMOST 5000 AMERICAN TROOPS IN SOMALIA HAS BECOME A CLASSIC CASE OF NO WAY OUT IF IT THOUGHT IT COULD THE CLINTON ADMINISTRATION WOULD PULL THE TROOPS OUT TOMORROW THE CURRENT US POLICY ESSENTIALLY AN OPENENDED COMMITMENT TO ESTABLISH ORDER IN THE FACTIONRIVEN AFRICAN NATION HAS ALMOST NO ENTHUSIASTIC SUPPORTERS WITHIN THE ADMINISTRATION NOR IS IT POPULAR WITH THE NATION AT LARGE ADMINISTRATION PLANNERS FEAR THAT A SPATE OF US CASUALTIES WOULD QUICKLY LEAD TO PUBLIC DEMANDS FOR WITHDRAWAL BUT THE ADMINISTRATION RELUCTANTLY HAS CONCLUDED THAT IF IT WERE TO WITHDRAW THE ENTIRE UNITED NATIONS EFFORT IN SOMALIA WOULD COLLAPSE AND THAT COULD BE DEVASTATING NOT ONLY FOR SOMALIA BUT FOR AN ADMINISTRATION THAT BELIEVING DEEPLY IN MULTILATERALISM THINKS THE UN HAS A CENTRAL ROLE TO PLAY IN STABILIZING THE POSTCOLD WAR WORLD THUS WHILE THERE WAS NO NATIONAL INTEREST AT STAKE IN SOMALIA WHEN THE MARINES HIT THE BEACHES OF MOGADISHU LAST DECEMBER THE US HAS DISCOVERED ONE THERE NOW WHAT MAKES SOMALIA IMPORTANT ISN'T SOMALIA PER SE BUT WHAT HAPPENS TO THE WHOLE IDEA OF INTERNATIONAL EFFORTS TO SAVE COUNTRIES THAT ARE IN BAD SHAPE SAYS ROBERT OAKLEY THE FORMER US SPECIAL ENVOY TO SOMALIA ADMINISTRATION OFFICIALS ACKNOWLEDGE THAT IT IS A HARD CASE TO MAKE TO THE AMERICAN PEOPLE PARTICULARLY BECAUSE LAST YEAR'S TELEVISED IMAGES OF SOMALI FAMINE HAVE FADED FROM THE PUBLIC MIND IF THE CLINTON WHITE HOUSE CAN'T JUSTIFY THE RELATIVELY EASY AND LIMITED MISSION TO SOMALIA IT WILL BE IN DEEP TROUBLE IF IT HAS TO SEND TENS OF THOUSANDS OF US TROOPS TO KEEP A PEACE IN BOSNIA AS IT IS COMMITTED TO DOING IF A PEACE AGREEMENT IS STRUCK THERE OTHERS COMPLAIN THAT THE ADMINISTRATION WHICH HAS HAD DIFFICULTY EXPLAINING ITS FOREIGN POLICY MOVES HASN'T EVEN TRIED TO MAKE ITS CASE FOR INVOLVEMENT IN SOMALIA EARLIER THIS WEEK GEORGIA DEMOCRAT SAM NUNN THE CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE SAID PEOPLE ARE TALKING ABOUT HAVING A MILITARY PRESENCE THERE UNTIL SOMALIA IS STABILIZED DO WE REALLY KNOW WHAT WE'RE DOING SOMALIA WASN'T SUPPOSED TO DRAG OUT LIKE THIS WHEN THE US INTERVENED LAST DECEMBER GEN COLIN POWELL THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SAID HIS GUT FEELING WAS THAT THIS LOOKED LIKE ABOUT A TWO TO THREEMONTH OPERATION AFTER WHICH THE US WOULD KEEP SOME COMBAT TROOPS NEARBY AS A KIND OF NEIGHBORHOOD SWAT TEAM THE HIGH POINT OF THE SOMALIA MISSION CAME AT THE OUTSET WHEN THE SIMPLE PRESENCE OF US TROOPS LAST DECEMBER BROKE LOGJAMS AND HELPED FOOD SHIPMENTS GET THROUGH TO THE INTERIOR'S FAMINE BELT HARDENED MARINE INFANTRY COMMANDERS WERE MOVED BY THE FEELGOOD MISSION AND ONE CAPTAIN SPOKE OF THE PLEASURE OF SEEING STARVING PEOPLE RECEIVE FOOD BUT AFTER THE US TURNED COMMAND OF THE OPERATION OVER TO THE UN IN MAY THE PEACEKEEPERS EASED THE INTENSE PATROLLING OF MOGADISHU AND OTHER CITIES SAYS MR OAKLEY THE FORMER US ENVOY TO SOMALIA THAT EMBOLDENED WARLORDS WHO HAD BEEN LYING LOW FOR MONTHS TECHNICALS THE PICKUP TRUCKS BEARING 50 CALIBER HEAVY MACHINE GUNS SOON REAPPEARED ON THE STREETS OF THE CAPITAL WITHIN A FEW WEEKS THE ORIGINAL US STRATEGY TO GRADUALLY ERODE THE MILITARY POWER OF THE WARLORD SCRUMBLED WE WENT IN THERE FOR HUMANITARIAN REASONS AND TRIED TO HAND IT OFF TO THE UN AND THE UN FELL ON ITS BUTT AND HANDED IT BACK TO THE US SUMMARIZES RETIRED ARMY COL HARRY SUMMERS AN INFLUENTIAL THINKER ON MILITARY STRATEGY SO NOW WE'RE ENGAGED IN NATIONBUILDING THAT HE HAS LONG ARGUED ISN'T A TASK FOR THE US MILITARY WHEN THE UN FOUND ITSELF IN A FIGHT IT COULDN'T HANDLE WITH MOHAMED FARRAH AIDID THE WARLORD WHO CONTROLS SOUTH MOGADISHU THE US WAS PRESSED BACK INTO ACTION SO FAR THOUGH THE ATTACKS ON AIDID STRONGHOLDS HAVE FAILED TO ACCOMPLISH MUCH EXCEPT TO INVITE FURTHER RETALIATION INCLUDING THE KILLINGS LAST MONTH OF FOUR US SOLDIERS BY A REMOTECONTROLLED MINE THIS WEEK'S BOTCHED ATTEMPT BY US ARMY RANGERS TO CAPTURE SOME OF MR AIDID'S LIEUTENANTS THE TROOPS INSTEAD MISTAKENLY CAPTURED AND DETAINED SEVERAL UN OFFICIALS FURTHER POINTS UP THE DIFFICULTY OF THE US MISSION AS IT IS NOW ENVISIONED THE WHOLE UN OPERATION IN MOGADISHU HAS BEEN DEPLORABLY INCOMPETENT SAYS SAID S SAMATAR A WELLCONNECTED SOMALI WHO TEACHES AFRICAN HISTORY AT RUTGERS AND WHO IN FACT SUPPORTS THE INTERVENTION THEIR INTELLIGENCE IS APPALLINGLY BAD MR SAMATAR THINKS THAT ONCE THE UN OPERATION SHAPES UP AND PUTS MR AIDID OUT OF PICTURE THROUGH EXILE JAIL OR DEATH HIS MOVEMENT WILL COLLAPSE AND CALM WILL BE RESTORED TO MOGADISHU BUT ABUCAR M LIBAN A FORMER SOMALI DEFENSE OFFICIAL AND MEMBER OF MR AIDID'S CLAN NOW LIVING IN THE WASHINGTON AREA DISAGREES HE CONTENDS THAT MR AIDID ENJOYS WIDE SUPPORT AND NOT JUST IN SOUTH MOGADISHU IF MR AIDID IS KILLED HE SAYS THEY WON'T FORGET IT HE PREDICTS THAT AN ATTACK ON MR AIDID WOULD LEAD TO FURTHER ATTACKS ON UN PEACEKEEPERS AND OTHER VIOLENCE THE UN PLAN IS TO SAY HE'S A DEMON AND KILL HIM MR LIBAN SAYS BUT THAT'S NOT GOING TO SOLVE THE ISSUE 9309020135 930902 THERE IS ONE THING WE CAN BE SURE OF IT'S A WORLDCLASS HOUSE BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS HE HASN'T DRAGGED HIS CHARTS AND POINTER TO LARRY KING LIVE ON THIS ONE YET BUT TAX APPRAISERS IN DALLAS HAD BETTER WATCH OUT ROSS PEROT IS MAD AGAIN MR PEROT THE ERSTWHILE PRESIDENTIAL CANDIDATE AND MULTIBILLIONAIRE HAS GONE TO COURT TO PROTEST THE 131 MILLION APPRAISED VALUE OF HIS 8264SQUAREFOOT MANSION AND SURROUNDING PROPERTY AND THAT FIGURE WAS ARRIVED AT AFTER THE DALLAS CENTRAL APPRAISAL DISTRICT CUT THE VALUATION TWICE THIS YEAR ON THE HOUSE WHICH HAS FOUR FIREPLACES 5 1/2 BATHS AND MORE THAN 25 ACRES OF SURROUNDING LAND FOR THE PAST THREE YEARS THE APPRAISAL DISTRICT ESTIMATED THE VALUE OF MR PEROT'S PROPERTY AT 135 MILLION LAST YEAR HE PAID ABOUT 54000 IN COUNTYRELATED PROPERTY TAXES BUT UNTIL THIS YEAR COUNTY OFFICIALS SAY HE NEVER SQUAWKED AND THIS YEAR THE DISTRICT VOLUNTARILY CUT THE APPRAISAL TO REFLECT CONTINUED DECLINING RESIDENTIAL PROPERTY VALUES IN TEXAS BUT MR PEROT PROTESTED AND AFTER A HEARING THE PROPERTY VALUATION WAS REDUCED BY AN ADDITIONAL 96100 STILL MR PEROT WASN'T SATISFIED AND LAST WEEK HE SUED IN STATE DISTRICT COURT CLAIMING AN APPRAISAL HE PAID FOR SHOWS THE PROPERTY IS WORTH EVEN LESS I WISH I HAD NO PROBLEMS BIGGER TO ME THAN I THINK PAYING THOSE TAXES ARE TO HIM SAYS DALLAS COUNTY COMMISSIONER JIM JACKSON THE CHAIRMAN OF THE APPRAISAL DISTRICT'S BOARD AS FAR AS I'M CONCERNED ROSS PEROT IS A CITIZEN OF DALLAS COUNTY ENTITLED TO EVERY RIGHT AND NO MORE MIKE POSS CHIEF FINANCIAL OFFICER FOR PEROT GROUP SAYS HIS BOSS ISN'T ASKING FOR MORE MR PEROT CERTAINLY DOESN'T OBJECT TO PAYING PROPERTY TAXES OR ANY OTHER TAXES SAYS MR POSS HE ONLY ASKS THAT HE GET TREATED LIKE EVERYONE ELSE MR POSS ADDS THAT RECENT COMPARABLE SALES IN MR PEROT'S NEIGHBORHOOD INDICATE THE PROPERTY IS SIGNIFICANTLY OVERVALUED MIKE TABOR AN ATTORNEY FOR THE APPRAISAL DISTRICT SAYS 99 OF THE MORE THAN 300 SUITS FILED EACH YEAR AGAINST THE APPRAISAL DISTRICT ARE SETTLED AND HE EXPECTS TO SETTLE MR PEROT'S COMPLAINT TOO OFFICIALS WILL PERSONALLY INSPECT AND APPRAISE THE PROPERTY FOLLOWING ROUTINE PROCEDURE WHEN A LAWSUIT IS FILED HE SAYS THEN NEGOTIATIONS WILL BEGIN WHO KNOWS WE MIGHT ALL WIND UP ON LARRY KING' HE SAYS 9309020131 930902 MONEYFUND YIELDS ARE LITTLE CHANGED NEW YORK YIELDS ON MONEYMARKET MUTUAL FUNDS HARDLY BUDGED IN THE LATEST WEEK WHILE INVESTORS WITHDREW BILLIONS OF DOLLARS FROM TAXABLE FUNDS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS INCHED UP TO 268 FROM 267 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 608 TAXABLE FUNDS MEANWHILE DROPPED BY 1194 BILLION TO 46510 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR ABOUT 829 BILLION OF THE OUTFLOW WHILE INDIVIDUALS WITHDREW ABOUT 365 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID INDIVIDUALS PROBABLY WERE MOVING MONEY INTO THE BOND MARKET WHERE PRICES HAVE BEEN RISING IN RECENT WEEKS WHILE INSTITUTIONS WERE ACTING TO TAKE ADVANTAGE OF SLIGHTLY HIGHER YIELDS IN OPEN MARKET SHORTTERM INVESTMENTS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE TREASURY BILLS AND COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS REMAINED AT 63 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A SIGNIFICANT RISE IN SHORTTERM INTEREST RATES ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 264 FOR THE FOURTH CONSECUTIVE WEEK WHILE THE AVERAGE 30DAY SIMPLE YIELD WAS 264 FOR THE SECOND WEEK IN A ROW THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 268 MONEY FUND REPORT SAID THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXEXEMPT FUNDS INCHED UP TO 202 FROM 200 IN THE LATEST WEEK ACCORDING TO THE NEWSLETTER THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 316 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 334 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF 326 TAXFREE FUNDS FELL BY 2614 MILLION TO 10195 BILLION AVERAGE MATURITY REMAINED AT 67 DAYS 9309020130 930902 INTERNATIONAL RUSSIAN PRIME MINISTER HAS SUPPORTED REFORMS CONFOUNDING EARLY DOUBTERS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WHEN VIKTOR CHERNOMYRDIN A JOWLY FORMER COMMUNIST PARTY APPARATCHIK REPLACED YEGOR GAIDAR AS RUSSIA'S PRIME MINISTER IN DECEMBER KREMLINWATCHERS FEARED THAT FREEMARKET REFORMS WOULD SLOW TO A CRAWL HARVARD UNIVERSITY'S JEFFREY SACHS AN ECONOMIC ADVISER TO THE RUSSIAN GOVERNMENT CALLED MR CHERNOMYRDIN'S APPOINTMENT A FIRSTORDER LOSS FOR REFORMS THAT IS POTENTIALLY CATASTROPHIC BUT MR CHERNOMYRDIN WHO GRANTED A RARE INTERVIEW ON THE EVE OF HIS CURRENT VISIT TO THE US HAS CONFOUNDED HIS CRITICS DESPITE EXPECTATIONS TO THE CONTRARY THE 55YEAROLD PRIME MINISTER HAS THROWN HIS WEIGHT BEHIND RUSSIAN PRESIDENT BORIS YELTSIN AT SEVERAL CRITICAL JUNCTURES PROVIDING BACKING IN THE PRESIDENT'S TUSSLES WITH PARLIAMENT ANTIREFORMISTS WHAT'S MORE HE HAS WON THE RESPECT OF SENIOR OFFICIALS SOME OF WHOM HAD DISMISSED HIM AS A MERE CARETAKER FIGURE MR CHERNOMYRDIN ALSO IS ONE OF THE FEW TOP RUSSIAN LEADERS WHO ISN'T DOGGED BY RUMORS OR ALLEGATIONS OF CORRUPTION CHERNOMYRDIN IS A PRACTICAL MAN WHO DEALS WITH ECONOMIC ISSUES EVERY HOUR OF EVERY DAY SAYS YURI PETROV FORMER CHIEF AIDE TO MR YELTSIN WHO NOW WORKS WITH THE PRIME MINISTER HE HAS A MUCH BETTER FEEL FOR PEOPLE THAN GAIDAR DID MR CHERNOMYRDIN WHO REPRESENTS A CENTRIST POSITION AMONG MR YELTSIN'S ALLIES ALSO IS TESTING HIS POLITICAL STRENGTH DARING TO OPPOSE THE PRESIDENT ON CERTAIN CRITICAL ISSUES WHILE MR YELTSIN WAFFLES ON THE QUESTION OF WHETHER TO RETURN THE DISPUTED KURILE ISLANDS TO JAPAN FOR EXAMPLE MR CHERNOMYRDIN HAS TAKEN A TOUGH LINE IN A STATEMENT THAT RUSSIA'S NATIONALISTS SURELY APPLAUD HE RECENTLY PROCLAIMED THE ISLANDS WON'T BE PASSED OVER TO JAPAN AS LONG AS I AM PREMIER TO BE SURE MR CHERNOMYRDIN IS FAR MORE CAUTIOUS ON ECONOMICREFORM POLICY THAN MR GAIDAR AND HE IS QUICKER TO PRAISE POSITIVE ASPECTS OF THE STATE PLANNING SYSTEM WHICH HE MASTERED AS FORMER HEAD OF GASPROM THE STATERUN GAS MONOPOLY MOREOVER HE SUPPORTED THE CENTRAL BANK'S SUDDEN DECISION LAST MONTH TO EFFECTIVELY CONFISCATE OLD RUBLE NOTES A MOVE CRITICIZED BY ALMOST EVERYONE ELSE STILL WITH MR CHERNOMYRDIN IN THE TOP GOVERNMENT SPOT RUSSIA'S REFORMS HAVE BEEN ABLE TO STUMBLE FORWARD IT WAS TELLING THAT WHEN MR CHERNOMYRDIN AGREED TO AN INTERVIEW HE DEMANDED THAT THE QUESTIONS AND ANSWERS BE TRANSMITTED BY FAX WITHOUT A FACETOFACE MEETING HE SHUNS THE SPOTLIGHT AND IS SUSPICIOUS OF THE PRESS ESPECIALLY AFTER THE DRUBBING HE RECEIVED WHEN HE TOOK OVER THE POST AN AIDE TO THE PRIME MINISTER TOLD A REPORTER IF YOU WANT TO KNOW WHAT CHERNOMYRDIN LOOKS LIKE YOU CAN ALWAYS SEE HIM ON TELEVISION MR CHERNOMYRDIN VIEWS HIMSELF AS A REFORMER AND REGARDS GASPROM ITSELF AS A MODEL OF REFORM THOSE WHO PREDICTED THE END OF MARKET REFORMS AFTER MY NOMINATION AS HEAD OF GOVERNMENT HAVEN'T READ MY BIOGRAPHY HE SAYS IN THE LATE 80S WHEN THE VERY WORD MARKET' WAS TABOO I SET OUT TO CREATE WHAT WAS IN ESSENCE OUR FIRST FREEMARKET CONCERN WHILE SOME WOULD CLASSIFY GASPROM AS A MASSIVE AND PRIVILEGED STATE ENTITY NEARLY EVERYONE GIVES MR CHERNOMYRDIN CREDIT FOR DEVELOPING AN EFFECTIVE ENTERPRISE THAT STOOD UP TO INTERNATIONAL COMPETITION IN HOUSTON ON MONDAY WITH MR CHERNOMYRDIN STANDING BY GASPROM OFFICIALS SIGNED A FRAMEWORK AGREEMENT WITH HOUSTON'S ENRON CORP TO DEVELOP NEW MARKETS FOR NATURAL GAS IN EUROPE WHEN MR CHERNOMYRDIN BECAME PRIME MINISTER HIS FIRST WORDS SET OFF ALARMS AMONG THOSE WHO FEARED THAT WITHOUT MR GAIDAR'S FORCEFUL PRESENCE RUSSIA'S REFORMS WOULD FIZZLE MR CHERNOMYRDIN SAID HE WAS AGAINST THE BAZAARLIKE CHAOS OF THE COUNTRY'S NASCENT ECONOMIC REFORMS MANY INTERPRETED THAT TO MEAN HE OPPOSED THE BOOMING RETAIL SECTOR THAT SPROUTED AFTER MR GAIDAR LAUNCHED HIS REFORM PROGRAM EARLY LAST YEAR TODAY MR CHERNOMYRDIN SAYS HE OPPOSES OPENLY SPECULATIVE FORMS OF STREET TRADE WHICH HE SAYS HAVE BRED AN UNSANITARY AND SEMICRIMINAL ATMOSPHERE BUT HE VIEWS THIS AS AN INEVITABLE STAGE OF ECONOMIC DEVELOPMENT THAT HE HOPES RUSSIA CAN WHIZ PAST I NEVER EXPECTED THAT ONE PHRASE FROM MY FIRST BRIEF INTERVIEW WOULD RECEIVE SUCH A RESOUNDING RESPONSE HE SAYS SOMEONE MUST HAVE HAD GREAT EXPECTATIONS THAT THE NEW HEAD OF GOVERNMENT WOULD TURN THE ECONOMY AROUND 180 DEGREES FUTURE ECONOMICPOLICY OPTIONS HE SAYS ARE LIMITED BY RUSSIA'S PRECARIOUS BALANCE BETWEEN RECESSION AND HYPERINFLATION WE HAVE TO MANEUVER IN A NARROW CORRIDOR HE SAYS SOME CRITICIZE US FOR INACTIVITY AND SLOWING REFORMS BUT OTHERS SAY WE'RE ADHERING TOO STRICTLY TO A TOUGH REFORM POLICY HE SAYS THE MUCHMALIGNED CENTRAL BANK HAS BEEN MOVING TOWARD AN UNDERSTANDING WITH THE GOVERNMENT AS EVIDENCED BY AN AGREEMENT ON NARROWING THE BUDGET DEFICIT AND TAMING INFLATION THAT WAS SIGNED MIDYEAR BY MR CHERNOMYRDIN AND BANK CHIEF VIKTOR GERASHCHENKO BUT I WOULD LIKE TO SEE THE CENTRAL BANK BECOME LESS ADMINISTRATIVE AND MORE MARKETORIENTED MR CHERNOMYRDIN SAYS IT IS IMPOSSIBLE TO GAUGE HOW CLOSELY MR CHERNOMYRDIN COOPERATES WITH HIS OUTSPOKEN FINANCE MINISTER BORIS FYODOROV THE STANDARD BEARER OF RUSSIA'S REFORM PROGRAM MR FYODOROV RIDICULED SOME OF MR CHERNOMYRDIN'S INITIAL ACTS AS PRIME MINISTER THOUGH BOTH SIDES NOW PLAY DOWN DIFFERENCES ON ECONOMIC MATTERS DURING HIS CURRENT VISIT TO THE US MR CHERNOMYRDIN HAS PITCHED FOR MORE INVESTMENT ESPECIALLY IN THE OIL AND GAS SECTOR HE IS CRITICAL OF US RESTRICTIONS ON RUSSIAN EXPORTS ESPECIALLY URANIUM ORE BUT HE EXPRESSES GRATITUDE FOR AMERICAN EFFORTS TO SPEARHEAD AN ASSISTANCE PACKAGE FOR RUSSIA DURING TIMES OF WORLDWIDE ECONOMIC TROUBLES MR CHERNOMYRDIN CLEARLY VIEWS THE US AS RUSSIA'S MAIN POTENTIAL ECONOMIC PARTNER IN THE INTERVIEW HE SUGGESTS CREATING A MOST FAVORED REGIME FOR USRUSSIAN BUSINESS COOPERATION HE ALSO PROPOSES A FREE TRADE ZONE BETWEEN RUSSIA AND THE US IN RUSSIA'S FAR EAST AFTER ALL HE SAYS WE'RE NEIGHBORS 9309020129 930902 PILLOWTEX SLATES ACQUISITION DALLAS PILLOWTEX CORP SAID IT AGREED TO ACQUIRE THE BUSINESS OF TENNESSEE WOOLEN MILLS INC A LEBANON TENN BLANKET MAKER FOR ABOUT 123 MILLION PILLOWTEX A PILLOW COMFORTER AND BEDROOM FURNISHINGS CONCERN ALSO SAID IT COMPLETED THE ACQUISITION OF SUBSTANTIALLY ALL ASSETS OF MANETTA MILLS INC OF MONROE LA WHICH MAKES COTTON BLANKETS FOR ABOUT 71 MILLION PILLOWTEX SAID ANNUAL SALES FOR TENNESSEE WOOLEN MILLS ARE ABOUT 25 MILLION AND FOR MANETTA MILLS ABOUT 15 MILLION PILLOWTEX SAID IT EXPECTS TO COMPLETE THE TENNESSEE ACQUISITION BY MIDSEPTEMBER 9309020128 930902 AMERICAN AIR ADDS TO LAYOFFS ASKS OTHER CUTS OPERATING COSTS TARGETED DELTA ARRANGES A STUDY OF TRANSATLANTIC RUNS BY JAMES S HIRSCH AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL TWO LARGE US AIRLINES CONTINUED EFFORTS TO IMPROVE OPERATIONS LONG PLAGUED BY LOSSES AMERICAN AIRLINES CITING FURTHER NEEDS TO CUT COSTS AMID POOR EARNINGS ANNOUNCED ADDITIONAL LAYOFFS FROM ITS MANAGEMENT AND ADMINISTRATIVE STAFF AND SAID IT WAS SEEKING TO CUT OPERATING EXPENSES BY 12 TO 15 FOR 1994 DELTA AIR LINES SAID IT HAD HIRED AN OUTSIDE CONSULTANT TO STUDY ITS TRANSATLANTIC OPERATIONS WHICH ARE IMPROVING BUT STILL NOT PROFITABLE THE ANNOUNCEMENTS UNDERSCORE THE FACT THAT DESPITE RECENT SIGNS OF AN INDUSTRY TURNAROUND MAJOR AIRLINES WILL CONTINUE TO BE WEIGHED DOWN BY THE HIGH COSTS OF EXPANSION IN PAST YEARS AT AMR CORP'S AMERICAN THE NATION'S SECONDLARGEST AIRLINE BEHIND UAL CORP'S UNITED THE CUTBACKS COME AMID BROADER EFFORTS TO REORGANIZE ITS OPERATIONS EARLIER THIS YEAR AMERICAN DISCLOSED PLANS TO SCRAP UNPROFITABLE ROUTES AND OPERATIONS BEEF UP PROFITABLE ONES AND BUILD UP ITS RELATED NONAIRLINE OPERATIONS BUT IT'S STILL UNCLEAR WHETHER THE FORT WORTH TEXAS COMPANY WHICH HAS REPORTED LOSSES TOTALING MORE THAN 1 BILLION INCLUDING ACCOUNTING CHARGES OVER THE PAST THREE YEARS IS DOING ENOUGH TO FLY HIGH AGAIN IN A STATEMENT AMERICAN SAID IT HAS STUDIED ORGANIZATIONAL OPTIONS TO ENHANCE SHAREHOLDER VALUE BUT DISMISSED AS UNFOUNDED SPECULATIONS A REPORT IN THE DALLAS MORNING NEWS THAT IT MIGHT SPLIT UP THE COMPANY INTO THREE SEPARATELY TRADED BUSINESSES AMERICAN'S RETRENCHMENT HOWEVER IS VERY REAL THE COMPANY SAID THE LAYOFFS FROM ITS MANAGEMENT AND SUPPORT STAFF WOULDN'T EXCEED 665 WHICH IS HOW MANY POSITIONS WERE ELIMINATED FROM THAT STAFF LAST YEAR IN THE PAST 12 MONTHS AMR HAS LAID OFF 1700 EMPLOYEES REDUCING ITS WORK FORCE TO 116000 AMERICAN ALSO SAID IT WILL BE ASKING EACH DEPARTMENT HEAD TO SLASH EXPENSES BY 12 TO 15 FOR 1994 WHICH PROBABLY WILL MEAN MORE LAYOFFS DEPARTMENT HEADS CUT EXPENSES THIS YEAR BY 10 COMPARED WITH 1992 WHEN THE COMPANY'S OPERATING COSTS WERE 144 BILLION FOR ITS PART DELTA SAID IT HAS HIRED MCKINSEY & CO TO DO A STUDY OF ITS MONEYLOSING EUROPEAN SYSTEM AS WELL AS SOME US OPERATIONS AND THE AIRLINE EXPECTS THE RESULTS DURING THE WINTER DELTA ALSO FOR THE FIRST TIME FLOATED THE IDEA OF A LOWCOST OPTION OR ESTABLISHING A NOFRILLS AIRLINE WITHIN AN AIRLINE THAT COULD COMPETE MORE ALONG THE LINES OF SOUTHWEST AIRLINES AT A NEWS BRIEFING IN NEW YORK RONALD W ALLEN DELTA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE AIRLINE'S TRANSATLANTIC OPERATIONS HAVE IMPROVED IF WE CAN KEEP THE PRESENT TRENDS THEN I THINK IT CAN BE A PROFITABLE CONTRIBUTOR IN 1994 MR ALLEN SAID AS FOR THIS YEAR MR ALLEN WOULDN'T PROMISE A PROFIT ON THOSE ROUTES FOR THE SECOND HALF AFTER LOSSES OF ABOUT 300 MILLION IN THE FIRST HALF BUT SAID THERE WOULD BE A DRAMATIC IMPROVEMENT FOR THE REST OF THE YEAR MR ALLEN WOULDN'T PREDICT WHEN THE ATLANTA AIRLINE AS A WHOLE WOULD START MAKING MONEY DELTA BOUGHT PAN AM CORP'S FRAYED EUROPEAN ROUTES TWO YEARS AGO AND THAT PURCHASE ALONG WITH AN INDUSTRYWIDE DOWNTURN PUSHED THE AIRLINE TO THREE YEARS OF HUGE ANNUAL LOSSES IN RESPONSE THE AIRLINE HAS CUT BILLIONS OF DOLLARS IN CAPITAL SPENDING FURLOUGHED EMPLOYEES SCALED BACK OPERATIONS AND FARMED OUT SOME FLYING TO COMMUTER PARTNERS TO REGAIN PROFITABILITY MR ALLEN SAID THAT UNLIKE OTHER AIRLINES WHICH ARE CONSIDERING SPINNING OFF DIVISIONS OR CERTAIN ASSETS DELTA HAS STUCK TO OUR KNITTING AND WE INTEND TO STICK TO OUR KNITTING AT THE SAME TIME HOWEVER WE'RE GOING TO DO WHAT IS NECESSARY TO COMPETE WITH ANYBODY THAT INCLUDES THE POSSIBILITY OF CREATING AN ALTERNATIVE SERVICE LIKE SOUTHWEST THAT DALLASBASED CARRIER WHICH PROVIDES FEW FRILLS AND ONLY POINTTOPOINT SERVICE IS IN STARK CONTRAST WITH DELTA'S OPERATIONS WHICH ARE CENTERED ON HUBS AND SPOKES SERVICE SOUTHWEST IS THE ONLY CONSISTENTLY PROFITABLE LARGE AIRLINE AMR'S SHARES CLOSED YESTERDAY AT 6675 OFF 25 CENTS AND DELTA AT 52625 DOWN 1375 BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9309020127 930902 WHO'S NEWS SOFTWARE DEVELOPER'S CO SOFTWARE DEVELOPER'S CO HINGHAM MASS DENNIS M MACKIE 47 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER HE SUCCEEDS STEVEN L OREMLAND 50 WHO LEFT THE COMPANY TO PURSUE OTHER INTERESTS MR MACKIE HAD BEEN CHIEF FINANCIAL OFFICER AT ABBOTT/OMNIFLOW A WILMINGTON MASS MAKER OF DRUG INFUSION DEVICES SOFTWARE DEVELOPER'S IS A DISTRIBUTOR OF PERSONAL COMPUTER PUBLICATIONS AND SOFTWARE AND HARDWARE TOOLS FOR ENGINEERS AND SCIENTISTS 9309020126 930902 UAW HOLDS STRIKE VOTE AT FORD DETROIT THE UNITED AUTO WORKERS UNION SAID ITS MEMBERS AT FORD MOTOR CO VOTED BY A 95 MARGIN TO AUTHORIZE A STRIKE IF ONE IS DEEMED NECESSARY AT THE AUTO MAKER THE UAW LIKE MOST UNIONS COMMONLY USES STRIKE VOTES AS BARGAINING TOOLS EVEN IN NEGOTIATIONS WHERE THE CHANCE OF AN ACTUAL JOB ACTION IS SMALL ON MONDAY THE UAW PICKED FORD AS ITS CONTRACT TARGET FOR THE AUTO INDUSTRY THE UAW REPRESENTS ABOUT 97000 WORKERS AT THE COMPANY FORD'S CURRENT THREEYEAR PACT WITH THE UAW EXPIRES SEPT 14 9309020125 930902 WHO'S NEWS CAPITOL HOLDING CORP CAPITOL HOLDING CORP LOUISVILLE KY NORMAN L PHELPS 55 YEARS OLD FORMERLY PRESIDENT OF THE DIRECT RESPONSE GROUP UNIT OF THIS INSURANCE HOLDING COMPANY WAS NAMED SENIOR VICE PRESIDENT ADDITIONALLY SHAILESH MEHTA 44 PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S BANKING GROUP UNIT WAS NAMED EXECUTIVE VICE PRESIDENT OF THE HOLDING COMPANY AND WILL ASSUME MANAGEMENT RESPONSIBILITY FOR THE DIRECT RESPONSE GROUP THE COMPANY SAID MR PHELPS PLANS TO RETIRE ON JULY 1 1994 9309020124 930902 MERIDIAN BANCORP ACQUISITION READING PA MERIDIAN BANCORP INC SAID IT COMPLETED THE ACQUISITION OF COMMONWEALTH BANCSHARES WILLIAMSPORT PA FOR ABOUT 3532 MILLION IN STOCK COMMONWEALTH BANCSHARES HOLDERS WILL RECEIVE 1415 SHARES OF MERIDIAN COMMON FOR EACH COMMONWEALTH SHARE MERIDIAN HAD ABOUT 78 MILLION SHARES OUTSTANDING FOLLOWING THE ACQUISITION MERIDIAN HAS ABOUT 144 BILLION IN ASSETS AND ABOUT 574 MILLION SHARES OUTSTANDING 9309020122 930902 CREDIT RATINGS BALTIMORE BANCORP BALTIMORE MD STANDARD & POOR'S CORP SAID IT RAISED THE RATING OF THE BANK HOLDING COMPANY SUBORDINATED DEBT TO TRIPLECPLUS FROM DOUBLEC AND REMOVED THE RATINGS FROM CREDITWATCH S&P SAID THE UPGRADE AFFECTS ABOUT 6 MILLION OF DEBT AND REFLECTS THE COMPANY'S IMPROVED CAPITAL POSITION PRIMARILY THROUGH A SUCCESSFUL DIVIDEND REINVESTMENT AND STOCK PURCHASE PROGRAM S&P SAID THE PROGRAM WHICH RAISED ABOUT 30 MILLION IN COMMON EQUITY BROUGHT BALTIMORE BANCORP INTO CAPITAL COMPLIANCE UNDER ITS OUTSTANDING REGULATORY AGREEMENTS S&P NOTED HOWEVER THAT THE COMPANY STILL FACES CHALLENGES PARTICULARLY ITS PROBLEM ASSETS WHICH REPRESENT OVER 12 OF RELATED ASSETS AND ALMOST 100 OF EQUITY AND RESERVES LOEWS CORP NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING FOR POSSIBLE DOWNGRADE THE DEBT AND PREFERRED STOCK RATINGS OF THIS TOBACCO AND INSURANCE CONCERN ABOUT 19 BILLION IN SECURITIES ARE UNDER REVIEW MOODY'S RATES LOEWS'S SENIOR DEBT SINGLE A1 THE RATINGS AGENCY SAID IT WILL FOCUS ON THE EARNINGS AND CASH FLOW OUTLOOK FOR LORILLARD INC LOEWS'S TOBACCO SUBSIDIARY AND EXAMINE THE IMPACT OF RECENT CIGARETTE PRICE REDUCTIONS ON CASH GENERATION AND DEBT PROTECTION OF THE PARENT THE ANNOUNCEMENT NOTED THAT ABOUT 75 OF LOEWS'S NONINSURANCE RELATED EARNINGS ARE DERIVED FROM ITS US CIGARETTE OPERATIONS LOEWS CONTROLS CNA FINANCIAL CORP AN INSURANCE COMPANY AND OWNS 23 OF CBS INC ROYAL BANK OF CANADA MONTREAL MOODY'S INVESTORS SERVICE INC CONFIRMED THIS BANK'S LONGTERM DEBT RATINGS FOLLOWING COMPLETION OF THE BANK'S 166 BILLION CANADIAN DOLLAR US126 BILLION ACQUISITION OF MOST OF THE ASSETS OF THE FORMER ROYAL TRUSTCO LTD THE RATINGS HAD BEEN UNDER REVIEW SINCE MARCH WHEN THE ACQUISITION WAS PROPOSED MOODY'S SAID THE CONFIRMATION REFLECTS ITS CONCLUSION THAT THE ACQUISITION SHOULDN'T MATERIALLY INCREASE THE BANK'S RISK PROFILE OVER THE LONGER TERM ALTHOUGH INITIALLY IT WILL INCREASE ITS LEVERAGE THE RATING SERVICE SAID IT EXPECTS CAPITAL RATIOS AT ROYAL BANK TO RECOVER OVER THE MEDIUM TERM AND THAT PROFITABILITY ALSO SHOULD RISE IT ADDED THAT THE BANK'S RESERVE COVERAGE OF PROBLEM LOANS SHOULD CONTINUE TO IMPROVE AND THAT THE NUMBER OF NEW PROBLEM LOANS AND RELATED WRITEDOWNS APPEARS TO BE DIMINISHING MOODY'S CONFIRMED THE BANK'S SENIOR DEBT RATING AT AA2 AND THE RATING ON ITS SUBORDINATED DEBT AT AA3 THE RATING ON SHORTTERM DEPOSITS AND COMMERCIAL PAPER REMAINS AT PRIME1 MOODY'S SAID 9309020121 930902 WEAN RECEIVES COURT CLEARANCE PITTSBURGH WEAN INC SAID IT RECEIVED US BANKRUPTCY COURT APPROVAL TO COMPLETE THE PROPOSED SALE OF ITS US ENGINEERING AND MANUFACTURING ASSETS TO DANIELI CORP A SUBSIDIARY OF DANIELI & C SPA THE SALE IS SCHEDULED TO CLOSE ON OR BEFORE SEPT 30 WEAN A PITTSBURGH METAL PROCESSOR DIDN'T DISLOSE THE SALE PRICE BUT HAD PREVIOUSLY SAID IT WOULD BE FROM 105 MILLION TO 13 MILLION 9309020120 930902 TECHNOLOGY US SAUDI ARABIAN JAPANESE CONCERNS PLAN OPTICALFIBER VENTURE TOKYO A CONSORTIUM OF JAPANESE US AND SAUDI ARABIAN COMPANIES AGREED TO LAY AN OPTICALFIBER COMMUNICATION CABLE BETWEEN JAPAN AND BRITAIN BY THE END OF 1996 A JAPANESE TRADING HOUSE SAID MARUBENI CORP THE TRADING COMPANY WILL JOIN WITH NYNEX CORP AND GULF ASSOCIATES INC OF THE US AND DALLAH ALBARAKA BANK OF SAUDI ARABIA TO LAY AN 18000MILE CABLE FROM JAPAN TO BRITAIN VIA HONG KONG THAILAND INDIA THE UNITED ARAB EMIRATES ITALY AND GIBRALTAR MARUBENI ESTIMATED THE PROJECT'S COST AT 12 BILLION MARUBENI SAID THE FOUR COMPANIES WILL ESTABLISH A JOINT VENTURE BY THE END OF SEPTEMBER AND INTEND TO BEGIN TAKING BIDS FOR CONSTRUCTION IN OCTOBER THE NEW CABLE IS EXPECTED TO CUT THE COST OF TELEPHONE CALLS BETWEEN JAPAN AND EUROPE THOSE CALLS CURRENTLY ARE ROUTED VIA SATELLITE OR A MARINE CABLE THAT RUNS THROUGH NORTH AMERICA 9309020119 930902 FOREIGN EXCHANGE SALES OF YEN ON IMMINENT RATE CUT PUT MARK AT 10WEEK HIGH AGAINST DOLLAR BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK SENSING AN IMMINENT CUT IN JAPANESE INTEREST RATES INVESTORS WEDNESDAY SOLD YEN FOR MARKS DRIVING THE JAPANESE CURRENCY LOWER ACROSS THE BOARD AND BOOSTING THE MARK TO A 10WEEK HIGH AGAINST THE DOLLAR LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16593 MARKS DOWN FROM 16765 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10530 YEN UP FROM 10475 YEN STERLING WAS TRADING AT 15045 UP FROM 14915 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10525 YEN AND AT 16593 MARKS TRADERS SAID THAT WITH THE GERMAN DISCOUNT RATE AT 675 AND SEEN UNLIKELY TO GO MUCH LOWER SOON AND THE JAPANESE DISCOUNT RATE AT 25 AND LOOKING TO COME DOWN EVEN FARTHER PLAYERS LOST INTEREST IN THE YEN AND MOVED TO GET MORE FOR THEIR MONEY IN HIGHERYIELDING GERMAN DEPOSITS DEALERS WERE FOCUSING ON A JAPANESE RATE CUT SO THEY WERE SELLING THE YEN AGAINST ALL CURRENCIES SAID KAZUHIKO SEKIGUCHI AN ASSISTANT VICE PRESIDENT AT TOYO TRUST & BANKING IN NEW YORK A CUT IN THE DISCOUNT RATE IS AMONG THE MEASURES BEING DISCUSSED BY JAPAN'S NEW GOVERNMENT TO REVIVE THE NATION'S STRUGGLING ECONOMY JAPANESE FINANCE MINISTER HIROHISA FUJII SAID IN TOKYO WEDNESDAY THOUGH MR FUJII INDICATED THAT HE BELIEVED JAPANESE RATES WERE ALREADY LOW ENOUGH TO HELP THE ECONOMY MARKET PLAYERS STILL THINK A CUT IS IN THE OFFING PEOPLE ARE LOOKING FOR A 3/4 TO HALFPOINT CUT PERHAPS BY THIS WEEKEND SAID PETER CONNOLLY VICE PRESIDENT AND FOREIGNEXCHANGE MANAGER AT WELLS FARGO BANK IN SAN FRANCISCO OTHERS NOTED SEVERAL OTHER FACTORS THAT APPEAR TO PROVIDE A CAP ON THE YEN WHICH CLIMBED ABOUT 20 AGAINST THE DOLLAR FROM FEBRUARY BEFORE FALLING BACK SLIGHTLY IN AUGUST THESE INCLUDE CONTINUING INTERVENTION BY THE BANK OF JAPAN TO SUPPORT THE DOLLAR AND APPARENT SATISFACTION WITHIN THE CLINTON ADMINISTRATION WITH THE YEN'S CURRENT LEVEL THE US DOES SEEM TO BE TAKING A STANCE THAT THEY'D LIKE TO SEE IT STABILIZE AROUND CURRENT LEVELS SAID BILL BERTHA VICE PRESIDENT AND CHIEF DEALER AT MELLON BANK IN PITTSBURGH HE CITED RECENT INTERVENTION BY THE FEDERAL RESERVE AND AN END TO COMMENTS BY US OFFICIALS CALLING FOR A STRONG YEN IF THE PERCEPTION IS THAT THE YEN STAYS STABLE THERE'S NOT MUCH POINT IN HOLDING YEN BECAUSE OF LOW JAPANESE INTEREST RATES MR BERTHA ADDED WHILE SOME PLAYERS WERE SELLING YEN FOR DOLLARS THE BIG WINNER ON THE DAY WAS THE MARK WHICH BROKE THROUGH RESISTANCE AROUND 63 YEN DURING THE LONDON TRADING DAY TRIGGERING STOPLOSS YEN SALES THAT DROVE THE MARK EVEN HIGHER THE MARK TRADED AT 6343 YEN LATE WEDNESDAY IN NEW YORK UP FROM 6247 YEN LATE TUESDAY TRADERS SAID THE MARK LOOKS ATTRACTIVE BECAUSE YIELDS PROVIDED BY DEPOSITS IN GERMANY ARE FAR GREATER THAN THOSE IN THE US OR JAPAN AND STRONG GERMAN MONEYSUPPLY GROWTH AND INFLATIONARY PRESSURES MAKE IT UNLIKELY THAT THE INFLATIONPHOBIC BUNDESBANK WILL ALLOW GERMAN RATES TO FALL VERY FAR IN THE NEAR TERM 9309020118 930902 INTERNATIONAL NEW ZEALAND WINE EXPORTS WELLINGTON NEW ZEALAND EXPORTS OF NEW ZEALAND WINE ROSE 39 TO 483 MILLION NEW ZEALAND DOLLARS US267 MILLION IN 1993 THE WINE INSTITUTE OF NEW ZEALAND SAID WEDNESDAY THE INSTITUTE SAID THAT 10 YEARS AGO NEW ZEALAND WINE EXPORTS EARNED ONLY NZ22 MILLION BUT THE VALUE OF OVERSEAS SALES HAS INCREASED IN RECENT YEARS WITH GREATER PRODUCTION THE NUMBER OF WINERIES IN NEW ZEALAND HAS NEARLY DOUBLED TO 180 CURRENTLY UP FROM 97 A DECADE AGO THE INSTITUTE SAID IN ITS ANNUAL REPORT HOWEVER THE PRODUCERS' ORGANIZATION WARNED THAT THE LOCAL INDUSTRY FACES A SHORTAGE OF WINE THE INSTITUTE SAID THAT NEW ZEALAND VINEYARDS PRODUCED 41000 METRIC TONS OF GRAPES IN 1993 DOWN 26 FROM 55500 TONS IN 1992 THE DROP WAS DUE TO UNSEASONABLE WEATHER 9309020117 930902 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI DALE A TIBBETS 40 YEARS OLD WAS NAMED TO THE NEW POSITION OF DIRECTOR OF COMMERCE AND GOVERNMENT RELATIONS FOR THIS TRANSPORTATION SERVICES COMPANY MR TIBBETS WILL DIRECT RYDER'S STATE LOBBYING ACTIVITIES IN THE MIDWEST AND RYDER'S MOTOR CARRIERCOMPLIANCE ACTIVITIES THROUGHOUT THE US AND CANADA HE PREVIOUSLY WAS RYDER'S MANAGER OF GOVERNMENT RELATIONS 9309020116 930902 NEWELL TO ACQUIRE LEEROWAN FREEPORT ILL NEWELL CO SAID IT DEFINITIVELY AGREED TO ACQUIRE LEEROWAN CO A MANUFACTURER AND MARKETER OF COATED WIRE STORAGE AND ORGANIZATION PRODUCTS TERMS WEREN'T DISCLOSED LEEROWAN BASED IN ST LOUIS HAD 1992 SALES OF ABOUT 100 MILLION NEWELL SAID 9309020115 930902 GENERAL DYNAMICS UNIT GETS JOB STERLING HEIGHTS MICH THE ARMY AWARDED A ONEYEAR 72 MILLION CONTRACT TO A GENERAL DYNAMICS CORP UNIT WORK UNDER THE AGREEMENT TO BUILD 12000 SINCGARS RADIOS WILL BE PERFORMED BETWEEN NOVEMBER 1994 AND OCTOBER 1995 BY THE DEFENSE CONTRACTOR'S LAND SYSTEMS UNIT 9309020114 930902 POLITICS & POLICY HIGHTECH INDUSTRY'S INFATUATION WITH CLINTON TURNS TO FRUSTRATION OVER UNKEPT VOWS INACTION BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR MANY OF THE HIGHTECH EXECUTIVES ENAMORED OF BILL CLINTON DURING LAST YEAR'S CAMPAIGN THE ROMANCE IS OVER THERE'S AN INCREASING SENSE OF FRUSTRATION FOR THOSE OF US WHO EMBRACED THE NEW ADMINISTRATION AND TRIED TO GIVE IT ADVICE SAYS JOSEPH GORMAN CHAIRMAN OF TRW INC THERE HASN'T BEEN ANY ACTION ADDS EDWARD R MCCRACKEN CHAIRMAN OF SILICON GRAPHICS INC WHO WAS AT MR CLINTON'S SIDE WHEN THE PRESIDENT UNVEILED HIS TECHNOLOGY PLANS AT THE COMPANY'S HEADQUARTERS THEY NEED TO PROVE TO THE WORLD AND THE HIGHTECHNOLOGY INDUSTRY THEY CAN FACILITATE ACTION THE HIGHTECH CONNECTION WAS IMPORTANT TO CANDIDATE CLINTON NOT JUST FOR THE CAMPAIGN MONEY RAISED BUT BECAUSE IT LENT A NEW DEMOCRAT ALLURE TO HIS MESSAGE COUNTERING ARGUMENTS THAT DEMOCRATS WERE OUT OF TOUCH WITH THE ENTREPRENEURIAL SPIRIT MR CLINTON HAS SAID HE'S VERY PLEASED WITH THE ADMINISTRATION'S RECORD ON HIGHTECH ISSUES CITING CAPITALGAINS TAX MEASURES FOR SMALL COMPANIES AND RESEARCHANDDEVELOPMENT TAX CREDITS INCLUDED IN HIS ECONOMIC PACKAGE VICE PRESIDENT AL GORE ADDS THAT SMALL BUSINESSES ARE VERY HAPPY WITH ADMINISTRATION INITIATIVES SUCH AS INCREASING THE AMOUNT OF EQUIPMENT PURCHASES THEY CAN WRITE OFF TO 17500 FROM 10000 HOPING TO ASSUAGE DISGRUNTLED HIGHTECH EXECUTIVES ADMINISTRATION OFFICIALS WILL SEEK TO HASH OUT TROUBLESOME ISSUES AT A TECHNOLOGY SUMMIT SPONSORED BY THE UNIVERSITY OF CALIFORNIA AT BERKELEY ON NOV 4 AND 5 IN SANTA CLARA CALIF BUT MANY IN THE INDUSTRY SAY THAT WHILE THE ADMINISTRATION'S HEART MAY BE IN THE RIGHT PLACE ON TECHNOLOGY ISSUES THERE HAS BEEN LITTLE EFFECTIVE FOLLOWTHROUGH ON A STRING OF PROMISES THEY HAVE A GOOD TECHNOLOGY AGENDA BUT THERE HAS TO BE ACTION ALONG WITH THE HYPERBOLE SAYS DAVID OBERSHAW DIRECTOR OF PRODUCT MARKETING AT MASS PAR COMPUTER CORP THEY'RE STUCK ON AUTOPILOT GROUSES CHRISTOPHER PADILLA AN AMERICAN TELEPHONE & TELEGRAPH CORP GOVERNMENT AFFAIRS OFFICIAL WE'RE RELUCTANTLY COMING TO THE CONCLUSION THAT OUR HIGH HOPES FOR THE ADMINISTRATION WERE UNFOUNDED FOR MANY EXECUTIVES A KEY ISSUE HAS BEEN WHAT THEY SEE AS THE ADMINISTRATION'S FAILURE TO MAKE GOOD ON PROMISES TO SPEEDILY LOOSEN COLD WARERA RESTRICTIONS ON EXPORTS OF HIGH TECHNOLOGY MANY IN THE INDUSTRY WERE CHEERED WHEN MR CLINTON TOLD RUSSIAN PRESIDENT BORIS YELTSIN IN VANCOUVER IN APRIL THAT THE US WOULD LIBERALIZE ITS TECHNOLOGY TRANSFER RULES BUT THEY SAY THEY HAVE SEEN LITTLE PROGRESS SINCE THE ADMINISTRATION DID RECENTLY PROPOSE TO RELAX EXPORT RULES ON HIGHSPEED COMPUTERS BUT THE MOVE WAS SEEN AS A LIMITED ONE THAT DICK IVERSON PRESIDENT OF THE AMERICAN ELECTRONICS ASSOCIATION ASSERTS FALLS SHORT NOR EXECUTIVES COMPLAIN HAS THE ADMINISTRATION MOVED FAST ENOUGH ON THE HIGHPERFORMANCE COMPUTING INITIATIVE A PLAN TO BUILD A SUPERFAST COMPUTER NETWORK OFTEN DUBBED AN INFORMATION SUPERHIGHWAY FOLKS ARE SAYING WE'VE BEEN SNOOKERED AGAIN' SAYS MICHAEL ERBSCHLOE VICE PRESIDENT AT COMPUTER ECONOMICS INC A RESEARCH FIRM THEY EXPECTED MORE PLANNING AND MORE PUBLIC PARTICIPATION BY NOW PERSONNEL IS PART OF THE PROBLEM KEY EXPORTPOLICY POSITIONS AT THE COMMERCE DEPARTMENT INCLUDING AN UNDERSECRETARY FOR EXPORT ADMINISTRATION HAVE YET TO BE FILLED JAMES UNRUH CHAIRMAN OF UNISYS CORP AN INFORMATION TECHNOLOGY COMPANY MET WITH ADMINISTRATION OFFICIALS IN JULY TO AIR COMPLAINTS ABOUT THE SLOWNESS OF THE EXPORTLICENSE PROCESS HE LOBBIED FOR REFORM ON BEHALF OF THE COMPUTER SYSTEMS POLICY PROJECT A TRADE GROUP OF BIG COMPUTER MAKERS SUCH AS APPLE COMPUTER INC AND HEWLETTPACKARD CO MOREOVER THE COMMERCE DEPARTMENT HAS HARDLY BECOME THE TECHNOLOGICAL POWERHOUSE THAT SECRETARY RON BROWN PROMISED AT HIS CONFIRMATION HEARINGS MR BROWN'S FIRST CHOICE FOR DEPUTY SECRETARY FORMER CRAY RESEARCH INC CHIEF EXECUTIVE OFFICER JOHN ROLLWAGEN WAS WIDELY HAILED WITHIN THE INDUSTRY BUT HE WITHDREW FROM CONSIDERATION IN THE WAKE OF A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION INTO TRADING OF THE STOCK OF A CRAY SPINOFF THE DESIGNEE FOR THE POST DAVID BARRAM A FORMER APPLE VICE PRESIDENT ISN'T AS BIG A NAME IN THE INDUSTRY MR BROWN DEFENDS THE AGENCY'S RECORD SAYING CONGRESS STALLED SOME OF THE ADMINISTRATION'S HIGHTECHNOLOGY INITIATIVES WHEN IT DEFEATED THE PRESIDENT'S STIMULUS PACKAGE EARLIER THIS YEAR HE CITES PROGRESS WITH THE APPOINTMENTS OF HIGHTECHNOLOGY EXECUTIVES TO KEY COMMERCE POSITIONS AND DEVELOPMENT OF MANUFACTURING CENTERS THAT WORK WITH BUSINESSES IN RESEARCH AND DEVELOPMENT VENTURES WE'RE COMMITTED TO OUR HIGHTECHNOLOGY AGENDA HE SAYS THE CLINTON ADMINISTRATION HAS BEGUN TO DELIVER ON SOME PROMISES FOR INSTANCE IT HAS MOVED TO DEVELOP A COMPUTER CHIP THAT PROTECTS DATA FROM BEING DECODED WHILE BEING TRANSMITTED BUT INDUSTRY EXECUTIVES ARE STILL UNHAPPY COMPLAINING THAT THE WORK IS BEHIND SCHEDULE THAT THEY WEREN'T INCLUDED IN THE CHIP'S DESIGN AND THAT IT IS DELIBERATELY BEING DESIGNED SO THAT THE NATIONAL SECURITY AGENCY AND OTHER FEDERAL INTELLIGENCE AGENCIES WILL BE ABLE TO INTERCEPT DATA WHICH HURTS OVERSEAS SALES IN A REBUKE TO THE ADMINISTRATION'S APPROACH THE INDUSTRY HAS ANNOUNCED PLANS FOR ITS OWN DATAPROTECTION SYSTEM MANY IN THE HIGHTECH COMMUNITY ALSO WERE DISAPPOINTED THAT THE PRESIDENT IN HIS ECONOMIC PLAN WAS FORCED TO SETTLE FOR ONLY A TEMPORARY EXTENSION THROUGH JUNE 1995 OF THE RESEARCHANDDEVELOPMENT TAX CREDIT HIGHTECH COMPANIES SAY A PERMANENT CREDIT IS NEEDED TO PROVIDE PREDICTABILITY IN THEIR R&D SPENDING CALCULATIONS AND SOME ARE ANGRY AT THE PACKAGE'S TAX INCREASES AIMED AT CORPORATIONS AND AFFLUENT AMERICANS THERE'S BEEN A LOT OF CONCERN THAT CLINTON IS GOING BACK TO BEING IN A TAXANDSPEND MODE RATHER THAN BEING A NEW DEMOCRAT SAYS SANDY ROBERTSON A SAN FRANCISCO INVESTMENT BANKER WHO ALTHOUGH A REGISTERED REPUBLICAN RAISED 300000 FOR MR CLINTON AT A FUNDRAISER LAST FALL THERE ARE PEOPLE WHO FEEL BETRAYED BUT MR MCCRACKEN THE SILICON GRAPHICS CHIEF SAYS THE FUNDAMENTAL REASON FOR DISAPPOINTMENT MAY GO BEYOND ANY ISSUE HE SUGGESTS THAT THE REAL REASON SIMPLY MAY BE A CULTURE CLASH BETWEEN HIGHTECH'S QUICK PACE AND WASHINGTON'S MORE CAUTIOUS APPROACH IN SILICON VALLEY HE SAYS WE JUST DO IT CLINTON ADMINISTRATION PLANS COMPANY 9309020113 930902 WHO'S NEWS VALASSIS COMMUNICATIONS INC VALASSIS COMMUNICATIONS INC LIVONIA MICH JON M HUNTSMAN 33 YEARS OLD VICE CHAIRMAN OF HUNTSMAN CHEMICAL CORP WAS ELECTED A DIRECTOR OF THIS PUBLISHER OF NEWSPAPER INSERTS FILLING A VACANCY 9309020112 930902 INTERNATIONAL MERCEDES AIMS TO IMPROVE GERMAN PLANTS' EFFICIENCY SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY MERCEDESBENZ AG SAYING IT FACES ONLY A WEAK RECOVERY IN THE GERMAN AUTOMOBILE MARKET NEXT YEAR IS AIMING TO INCREASE EFFICIENCY AT ITS PLANTS BY 15 IN 1994 EVEN THOSE COST MEASURES WON'T BE ENOUGH TO CLOSE THE GAP WITH THE INCREASINGLY NIMBLE COMPETITION SAID HELMUT WERNER CHAIRMAN OF THE LUXURY CAR AND COMMERCIAL TRUCK MANUFACTURER A UNIT OF DAIMLERBENZ AG GERMAN PRODUCERS MUST SLASH PRODUCTION COSTS 40 IN COMING YEARS JUST TO KEEP PACE WITH THE INDUSTRY HE SAID MERCEDES'S ANNOUNCED PLANS TO CUT 14000 JOBS IN ITS GERMAN FACTORIES NEXT YEAR WERE UNAVOIDABLE MR WERNER SAID THIS YEAR THE AUTO MAKER IS TRIMMING SOME 14000 JOBS MEANWHILE TO REDUCE ITS BLOATED INVENTORY THE COMPANY WILL CUT PASSENGER CAR PRODUCTION TO 485000 THIS YEAR FROM 529430 LAST YEAR 9309020111 930902 WHO'S NEWS PRESIDENT OF LANSTON BONDTRADING FIRM SETS DEPARTURE DATE NEW YORK AUBREY G LANSTON & CO SAID ITS PRESIDENT JAMES A RICE HAS RESIGNED AND PLANS TO LEAVE HIS POSITION DEC 31 THE FIRM SAID IT PRESENTLY HAS NO PLANS TO NAME A REPLACEMENT LANSTON IS ONE OF 39 PRIMARY DEALERS A GROUP OF BOND DEALERS PERMITTED TO BUY AND SELL US GOVERNMENT SECURITIES DIRECTLY WITH THE FEDERAL RESERVE BANK OF NEW YORK THE 45YEAROLD MR RICE WHO HAS BEEN PRESIDENT SINCE 1990 SAID HE RESIGNED TO LOOK AT FUTURE OPPORTUNITIES MR RICE HAS BEEN WITH LANSTON SINCE 1981 RICHARD M KELLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT THE RESIGNATION WAS ACCEPTED WITH DEEP REGRET HE ADDED THAT MR RICE CONTRIBUTED IMPORTANTLY TO LANSTON DURING HIS TENURE AND HE WILL BE SORELY MISSED LANSTON IS OWNED BY IBJ SCHRODER BANK & TRUST CO A UNIT OF INDUSTRIAL BANK OF JAPAN LTD 9309020110 930902 TECHNOLOGY FORMER SPACERACE RIVALS POISED TO LAUNCH GREATER COOPERATION FIRST US COMMERCIAL USE OF RUSSIA'S MIR STATION TO BE PACT'S CENTERPIECE BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US IS ON THE VERGE OF AGREEING TO ITS MOST EXTENSIVE COOPERATION IN OUTER SPACE WITH ITS FORMER SPACERACE RIVALS THE RUSSIANS IN TALKS THAT CONCLUDE HERE TODAY VICE PRESIDENT GORE AND RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN ARE EXPECTED TO SIGN A PACT THAT WOULD LEAD TO THE FIRST COMMERCIAL US USE OF THE RUSSIAN SPACE STATION MIR WHICH HAS BEEN IN ORBIT SINCE 1986 THE US IS CONSIDERING PAYING AS MUCH AS 400 MILLION OVER FOUR YEARS FOR USE OF RUSSIA'S SPACE SERVICES THE DEAL GOES FURTHER THAN THE MORE SYMBOLIC SPACE COLLABORATION PLANNED SINCE THE COLLAPSE OF THE SOVIET UNION PLANS THAT WERE BEGUN UNDER PRESIDENT BUSH ARE IN THE WORKS FOR A US SPACE SHUTTLE TO DOCK WITH MIR IN 1995 AND FOR A RUSSIAN COSMONAUT TO FLY ON THE SHUTTLE ACCORDING TO INDUSTRY AND ADMINISTRATION SOURCES THE US AND RUSSIAN LEADERS WILL DISCUSS INCREASING THE NUMBER OF US ASTRONAUTS TO FLY ON MIR BETWEEN 1994 AND 1997 AND PUTTING US SCIENTIFIC EQUIPMENT ON THE ORBITING RUSSIAN LAB SUCH AN ARRANGEMENT WOULD GIVE THE US GREATER EXPERIENCE IN LIVING AND WORKING IN OUTER SPACE YEARS BEFORE A USLED SPACE STATION CAN BE COMPLETED WHILE STRENGTHENING COMMERCIAL AND POLITICAL TIES BETWEEN THE TWO COUNTRIES OTHER COUNTRIES HAVE PAID FOR RIDES ON MIR BUT THE AGREEMENT UNDER DISCUSSION IS IMPORTANT BECAUSE IT WOULD ADVANCE A PROCESS FOR CONSIDERING OTHER JOINT SPACE VENTURES BETWEEN TWO FORMER SUPERPOWER ENEMIES THE ULTIMATE COLLABORATION WOULD BE A MERGER OF RUSSIA'S NEXTGENERATION SPACE STATION MIR 2 WITH AMERICA'S PLANNED SPACE STATION TO BE BUILT WITH EUROPEAN NATIONS CANADA AND JAPAN PLANS FOR WHAT WOULD BE A HISTORIC MERGER ARE BEING DRAWN UP TO TEST THEIR TECHNOLOGICAL FEASIBILITY MESSRS GORE AND CHERNOMYRDIN ARE EXPECTED TO DISCUSS THE POSSIBILITY OF COMBINING THEIR ULTRAEXPENSIVE SPACE OUTPOSTS BUT A CLINTON ADMINISTRATION OFFICIAL SAID THERE ARE A LOT OF STEPS TO GO BEFORE ANY MERGER COULD BE APPROVED THE WHITE HOUSE THIS MONTH IS EXPECTED TO BE PRESENTED WITH PLANS DRAWN UP BY RUSSIAN AND US SPACE OFFICIALS IN INTENSE NEGOTIATIONS OVER THE PAST FIVE WEEKS FOR COMBINING THE US SPACE STATION WHICH AFTER 9 BILLION AND A DECADE OF PLANNING IS LITTLE MORE THAN A BLUEPRINT WITH MIR 2 WHICH IS MUCH FURTHER ALONG WHILE MANY IN THE US SPACE COMMUNITY HAVE ADVOCATED COMBINING EFFORTS WITH THE RUSSIANS WHITE HOUSE OFFICIALS ARE SAID TO BE NERVOUS ABOUT A MERGER BECAUSE OF THE MAJOR POLITICAL AND NATIONALSECURITY CONSIDERATIONS ONE POLITICAL PROBLEM IS THAT CONGRESS IS GROWING INTOLERANT OF THE MOUNTING COSTS AND CONTINUALLY CHANGING PLANS FOR THE US SPACE STATION WHICH IS UNDERGOING ITS FIFTH REDESIGN SINCE IT WAS PROPOSED IN 1984 ADDRESSING THAT PROBLEM US OFFICIALS SAY A MERGER WITH THE RUSSIANS WOULD HINGE ON MAKING NO MAJOR MODIFICATIONS TO THE US SHUTTLE DESIGN MR GORE AND MR CHERNOMYRDIN ALSO ARE EXPECTED TO SIGN TWO ACCORDS WORKED OUT IN JULY ONE PLEDGES RUSSIAN SUPPORT FOR AN INTERNATIONAL AGREEMENT LIMITING THE SPREAD OF BALLISTIC MISSILES THE OTHER WOULD ALLOW THE RUSSIANS FOR THE FIRST TIME TO ENTER INTO COMPETITIVE BIDDING ON ROCKETS TO CARRY USBUILT SATELLITES THE TWO LEADERS ALSO ARE TO DISCUSS WAYS TO INCREASE USRUSSIAN ECONOMIC INTERESTS PARTICULARLY IN OIL AND GAS DEVELOPMENT 9309020109 930902 VF SEES EARNINGS FALLING IN QUARTER STOCK DROPS 82 BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL WYOMISSING PA VF CORP SAID FISCAL THIRDQUARTER EARNINGS WILL BE 10 BELOW THE 129 A SHARE POSTED A YEAR AGO THE COMPANY CITED UNUSUAL AND NONRECURRING CHARGES AS WELL AS WEAKER DEMAND FOR SLEEPWEAR ROBES AND PRICEY JEANS THE NEWS PROMPTED AN 82 DROP IN THE APPAREL COMPANY'S STOCK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING VF'S SHARES FELL 375 TO 4225 ON VOLUME OF NEARLY 12 MILLION SHARES ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD EXPECTED VF TO REPORT EARNINGS OF ABOUT 133 A SHARE FOR THE QUARTER ENDING OCT 2 THE COMPANY WILL REPORT ITS RESULTS OCT 20 LAWRENCE R PUGH CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WON'T BE ABLE TO MAKE UP THE THIRDQUARTER PROFIT DIP IN THE FOURTH QUARTER AS A RESULT HE SAID EARNINGS FOR THE FULL YEAR WILL COME IN BELOW ANALYSTS' ESTIMATES OF ABOUT 414 A SHARE IN 1992 VF HAD NET INCOME OF 237 MILLION OR 397 A SHARE VF SAID THE THIRDQUARTER EARNINGS DROP INCLUDES A WRITEDOWN OF 15 CENTS A SHARE REFLECTING THE CLOSURE OF A BASSETTWALKER DIVISION FACTORY IN NORTH CAROLINA BASSETTWALKER WHICH MAKES FLEECEWEAR AND TSHIRTS UNDER THE LEE AND RIDER BRANDS LOST TWO LARGE RETAIL ACCOUNTS WHEN VF PULLED THE LEE LINE FROM THE DISCOUNT CHANNEL AND SUBSTITUTED THE RIDER BRAND BUT VF SAID THE PLANT CLOSING WILL MEAN PRODUCTION EFFICIENCIES THAT WILL CUT COSTS AND IMPROVE PROFIT BY ABOUT 8 MILLION IN 1994 GERARD G JOHNSON VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID VF WILL BEGIN SHIPPING RIDER FLEECEWEAR AND TSHIRTS TO SEARS ROEBUCK & CO NEXT YEAR WHICH WILL COME VERY CLOSE TO MAKING UP THE VOLUME OF THE OTHER TWO MEANWHILE VF EXPECTS OPERATING EARNINGS TO FALL BY 15 TO 20 CENTS IN THE THIRD QUARTER WITH ABOUT SEVEN CENTS OF THE DROP RELATED TO THE ACCOUNTING PROCEDURES IT ATTRIBUTED FOUR CENTS OF THE DECLINE IN OPERATING NET TO FLAT SALES OF ITS GIRBAUD LINE OF HIGHERPRICED JEANS VF SAID GIRBAUD SALES WILL BE FLAT FOR ALL 1993 REVISING ITS 30 GROWTH FORECAST FINALLY A SHIFT IN SALES IN THE VANITY FAIR DIVISION AWAY FROM HIGHMARGIN SLEEPWEAR AND ROBES TO FOUNDATION GARMENTS ACCOUNTS FOR THE REMAINDER OF THE OPERATING EARNINGS DECLINE VF SAID IT EXPECTS TO RECOGNIZE A GAIN IN THE QUARTER OF 26 CENTS A SHARE BECAUSE OF A TAX SETTLEMENT RELATED TO ITS 1986 ACQUISITION OF BLUE BELL HOLDING CO BUT THE QUARTER ALSO WILL CONTAIN A CHARGE OF SIX CENTS A SHARE TO REFLECT THE RETROACTIVE EFFECT OF THE RECENT CHANGE IN FEDERAL TAX RATES AS A RESULT THE COMPANY WILL POST A NET TAX GAIN OF 20 CENTS MR JOHNSON SAID PROFIT GROWTH OF 10 IN 1994 IS ACHIEVABLE IF WE CAN GET OUR ARMS AROUND THE COST PROBLEMS AT VANITY FAIR EVEN IF GIRBAUD DOESN'T GROW 9309020108 930902 ADVERTISING PERRIER TRIES TO REJUVENATE STODGY IMAGE BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL GREENWICH CONN KIM JEFFERY'S EYES STILL SOMETIMES WELL WITH TEARS WHEN HE TALKS ABOUT WHAT HAPPENED TO HIS CHILD LITTLE WONDER MR JEFFERY IS PRESIDENT OF PERRIER GROUP OF AMERICA AND THE OBJECT OF HIS FATHERLY FEELING IS THE FALLEN ANGEL OF THE YUPPIE ERA PERRIER WATER THE ONCEUBIQUITOUS FRENCH IMPORT HAS NEVER RECOVERED ITS US MARKET DOMINANCE SINCE BENZENE CONTAMINATION FORCED ITS TEMPORARY RECALL IN 1990 BUT LAST YEAR AFTER A TENSE BATTLE FRANCE'S PERRIER WAS TAKEN OVER BY SWISSBASED FOOD GIANT NESTLE SA NOW PERRIER'S US MARKETERS SAY THEY HAVE A PLAN THE FIRST STEP IS AN ADVERTISING CAMPAIGN DEVELOPED BY PUBLICIS CONSEIL SA THAT'S AIRING NOW ON TELEVISION INTERNALLY AT LEAST WE CALL IT THE RENAISSANCE SAYS JEFFREY CASO PERRIER'S NEW US MARKETING CHIEF A NESTLE VETERAN THE GOAL ERASE PERRIER'S IMAGE AS A DRINK FOR AGING YUPPIES AND RECREATE IT AS A THIRSTQUENCHER FOR THE YOUNG THE BRAND HAS A NEGATIVE STEREOTYPE NOW SAYS ANDREW CARTER PERRIER'S US PRODUCT MANAGER WHAT'S WORSE HE LAMENTS YOU TEND TO FIND THAT THE STEREOTYPE IS SOMEWHAT TRUE PERRIER SELLS BEST TO THE OVER45 CROWD AND WORST TO THOSE UNDER 25 PEOPLE SEE IT AS A WATER THAT OLDER CONSERVATIVE WEALTHY PEOPLE DRINK I SORT OF CALL THEM THE GREENWICH COUNTRY CLUB TYPES MR CARTER SAYS WE CAUGHT A WAVE IN THE '80S NOW THOSE PEOPLE HAVE GROWN UP WE NEED TO CAPTURE PEOPLE WHO ARE 25 TO 34 AS PART OF ITS RENAISSANCE PERRIER SAYS IT WILL BOOST AD SPENDING FOR ITS FLAGSHIP BRAND BY 35 THIS YEAR LEADING NATIONAL ADVERTISERS INC WHICH TRACKS AD SPENDING SAYS THE BRAND SPENT 61 MILLION LAST YEAR WHICH WOULD PUT THIS YEAR'S PLANNED SPENDING AT ABOUT 82 MILLION THE NEW CAMPAIGN WAS DEVELOPED BY THE NEW YORK OFFICE OF PARISBASED PUBLICIS WHICH REPLACED NEW YORK'S WARING & LAROSA AS PERRIER'S AGENCY LATE LAST YEAR I CALL IT THE LOWERING OF THE BROW OF PERRIER SAYS TOM PIRKO WHO HEADS BEVMARK INC A CONSULTING CONCERN ALTHOUGH IT'S STILL PRICED ABOVE DOMESTIC BRANDS PERRIER IS TRYING TO SHIFT AWAY FROM THE SNOB MARKET NOW DOMINATED BY IMPORTS SUCH AS SAN PELLEGRINO ITS NEW CAMPAIGN PAINTS THE WATER AS A REFRESHING STAPLE NOT SOMETHING JUST FOR THE INITIATED THAT'S HOW PERRIER IS MARKETED IN CONTINENTAL EUROPE WHERE IT SELLS STRONGLY ONE OF THE NEW ADS FOR EXAMPLE SHOWS A YOUNG CASUALLY DRESSED GOLFER HITTING PRACTICE BALLS AND WORKING UP A SWEAT TO COOL OFF PERRIER'S MR CARTER POINTS OUT THE GOLFER SLUGS A BIG BOTTLE OF PERRIER HE DOESN'T SIP A LITTLE 6 1/2 OUNCE BOTTLE THE MESSAGE PERRIER ISN'T JUST FOR CELEBRATING LEVERAGED BUYOUTS IT'S FOR YOUNG PEOPLE WITH BIG THIRSTS THE ADS ARE BEING RUN ON THE DAVID LETTERMAN AND ARSENIO HALL SHOWS THOUGHT TO BE POPULAR WITH THE YOUNG BUT NOT ON JAY LENO'S TONIGHT SHOW THOUGHT TO APPEAL TO OLDER VIEWERS MR CARTER SAYS THEY ARE LOOKING FOR A MORE MIDDLEBROW CONSUMER NOT NECESSARILY THE GUY WHO USED TO WEAR SUSPENDERS MR PIRKO SAYS THE BENZENE INCIDENT HE SAYS MAY EVEN TURN OUT TO HAVE BEEN A SEMIDISGUISED OPPORTUNITY WHAT WE ARE REALLY LOOKING AT IS A CHANCE FOR THEM TO GROW IN A DIFFERENT WAY INTO THE 48 BILLION CARBONATED SOFTDRINK BUSINESS THAT'S WHERE THE REAL MONEY IS WE AMERICANS DRINK MORE SOFT DRINKS THAN WATER IF PERRIER COULD PICK UP TWO PERCENTAGE POINTS OF THE US SOFTDRINK MARKET HE NOTES IT WOULD HAVE NEARLY 1 BILLION IN ANNUAL SALES LAST YEAR US SALES CAME IN AT ABOUT 53 MILLION BUT TO SUCCEED IN THE AMAZINGLY DIVERSE US BEVERAGE MARKET OF THE '90S PERRIER IS GOING TO HAVE TO DO BETTER THAN IT HAS SO FAR AFTER THE COSTLY 1990 RECALL PERRIER IMPROVED THE FILTRATION PROCESS AT ITS PLANT IN SOUTHERN FRANCE TODAY IT SAYS EVEN TRACE AMOUNTS OF THE BENZENE NATURALLY PRESENT IN THE WATER CAN'T CREEP INTO ITS BOTTLES BUT IT STILL STRUGGLES UNDER THE DOUBLE BURDEN OF BENZENE MEMORIES AND ITS STODGY IMAGE PERRIER'S OUT OF FASHION IN BEVERLY HILLS SAYS TOM HALE BARTENDER AT THE BAREFOOT CAFE IN LOS ANGELES SAN PELLEGRINO IS NO 1 HERE SAYS JULIAN NICCOLINI MANAGER OF NEW YORK'S FOUR SEASONS RESTAURANT I DON'T LIKE PERRIER SAYS 21YEAROLD ANNA BOFILL AT A NEW JERSEY MALL DOES SHE KNOW ANYONE WHO DRINKS IT MY BOYFRIEND'S DAD SHE SAYS MR JEFFERY THE PERRIER CHIEF SAYS HE HAS WON BACK ONLY A BIT MORE THAN HALF OF THE 100 MILLION IN US YEARLY SALES THAT PERRIER HAD BEFORE THE BENZENE SCANDAL ANALYSTS SAY ITS MARKET SHARE WHAT NEW YORK CATERER CHARLES FISHER CALLS BLADDER SHARE HAS SLIPPED EVEN FURTHER IT'S GONE SLOWER THAN I WOULD HAVE PREDICTED AND DID PREDICT THREE YEARS AGO SAYS MR JEFFERY IN ITS INITIAL COMEBACK TRY BEGINNING IN THE SUMMER OF 1990 PERRIER HIRED A TEAM OF YOUNG PEOPLE TO TRUDGE TO BARS AND RESTAURANTS ASKING OWNERS TO TAKE THE WATER BACK IT WAS TOUGH WORK AND TO MAKE THINGS WORSE CONFUSION REIGNED AT PARIS HEADQUARTERS THE CHAIRMAN WAS OUSTED IN A BOARDROOM STRUGGLE THEN CAME THE LONG 1992 BATTLE THAT LEFT NESTLE IN CONTROL NO ONE EXPECTS PERRIER TO CHANGE ITS IMAGE OVERNIGHT BUT THE GOOD NEWS FOR PERRIER IS THAT FOR MANY YOUNG PEOPLE BENZENE IS ANCIENT HISTORY THE BENZENE SCANDAL DOESN'T BOTHER ME SAYS MARY JANE FORTUNE 24 A TRAVEL AGENT IN NEW YORK HER MOTHER OUT SHOPPING WITH HER DAUGHTER IS AGHAST YOU WOULD ORDER IT AFTER ALL THE SCANDAL SHE ASKS YEAH HER DAUGHTER SAYS THE BAD NEWS IS THAT FOR MOST YOUNG PEOPLE PERRIER IS SIMPLY BESIDE THE POINT I USUALLY ASK FOR SNAPPLETYPESTUFF DIET ICED TEA OR CLEARLY CANADIAN SIMILAR TO PERRIER BUT WITH FLAVOR SAYS CRAIG ELLISH 21 A STUDENT HE SAYS HE DIDN'T REALIZE THAT PERRIER ALSO SELLS WATER WITH FRUIT FLAVORING PERRIER IS HAVING SOME SUCCESSES NEW YORK SUSHI RESTAURANT HATSUHANA WHICH DROPPED PERRIER IN HORROR IN 1990 STOCKS IT EXCLUSIVELY AGAIN ONE BIG FACTOR PERRIER NOW IS CHEAPER THAN SAN PELLEGRINO MOST OF PERRIER'S RENAISSANCE PLAN STILL IS BEING DEVELOPED MR JEFFERY SAYS HE'S WORKING ON THINGS SUCH AS NEW PACKAGING IDEAS MR CASO THE MARKETING CHIEF SAYS HE SEES VAST UNEXPLOITED POSSIBILITIES PERRIER ISN'T THE ONLY TOE NESTLE HAS IN THE US WATER MARKET THE PERRIER GROUP ALSO INCLUDES AN EXTENSIVE STABLE OF US WATER BRANDS SUCH AS ARROWHEAD AND POLAND SPRING WHICH GENERATE MORE THAN 90 OF THE GROUP'S US WATER SALES NONBUBBLY WATERS IN PARTICULAR ARE GROWING FASTER THAN PERRIER ITSELF PROFITS FROM THOSE BRANDS GIVE NESTLE BREATHING SPACE TO EXPERIMENT WITH THE IMAGE OF ITS FLAGSHIP BRAND PERRIER JUST TO BE SAFE NESTLE EVEN OWNS A 25 STAKE IN RIVAL SAN PELLEGRINO AND MAKES NO SECRET THAT IT EVENTUALLY INTENDS TO ACQUIRE THE ITALIAN BRAND TOO SNAPPLE BEVERAGE CORP STARTED A CALIFORNIA AD CAMPAIGN YESTERDAY TO SQUELCH RUMORS THAT IT SUPPORTS THE KU KLUX KLAN AND OPERATION RESCUE AN ANTIABORTION GROUP THE ICEDTEA AND SOFTDRINK COMPANY DENIED THE YEAROLD RUMORS IN NEWSPAPER AND RADIO ADS IN THE SAN FRANCISCO AREA YESTERDAY THE ADS TOOK THE FORM OF AN OPEN LETTER TO CONSUMERS AND WERE SIGNED BY THE COMPANY'S TOP THREE EXECUTIVES UNDER THE HEADLINE THE PLAIN TRUTH THE LETTER SAYS WE ARE NOT INVOLVED IN ANY WAY WHATSOEVER WITH THE KKK OPERATION RESCUE OR ANY OTHER TYPE OF PRESSURE GROUP OR ORGANIZATION PERIOD SNAPPLE WHOSE REGULAR ADVERTISING FOCUSES ON LETTERS FROM LOYAL CUSTOMERS HAS BEEN RECEIVING QUITE A FEW MISSIVES FROM WOMEN VOWING TO GIVE UP SNAPPLE PRODUCTS BECAUSE THEY THINK SNAPPLE SUPPORTS OPERATION RESCUE SAYS SNAPPLE'S PRESIDENT LEONARD MARSH DISTRIBUTORS IN NORTHERN CALIFORNIA HAVE BEEN HEARING COMPLAINTS FOR ABOUT A YEAR FROM CUSTOMERS WHO THINK SNAPPLE SUPPORTS THE KKK HE SAYS THE VALLEY STREAM NY COMPANY HAD TRIED TO RIDE OUT THE WAVE OF RUMORS QUIETLY MR MARSH SAYS BUT FINALLY DECIDED IT HAD TO TAKE ACTION IF CONSUMERS FOUND SOMETHING BETTER THAT WOULD BE ONE THING HE SAYS BUT WE DIDN'T WANT CUSTOMERS TURNING AWAY FROM US BECAUSE OF RUMORS AND UNTRUTHS THEY'VE HEARD ABOUT OUR COMPANY GM CARD GENERAL MOTORS CORP AND AGENCY MCCANNERICKSON A UNIT OF INTERPUBLIC GROUP UNVEILED NEW ADS FOR THE GM CREDIT CARD A SERIES OF HEARTTUGGING CUSTOMER TESTIMONIALS ABOUT THEIR LIFESTYLES AND HOW THEY USED THE CARD TO GET MONEY OFF ON GM CARS THE AUTO MAKER SAYS IT HAS ISSUED ABOUT SEVEN MILLION CARDS ON 55 MILLION ACCOUNTS ACCOUNT MILLER BREWING A UNIT OF PHILIP MORRIS COS PICKED MARTI FLORES PRIETO & WACHTEL OF CHICAGO TO HANDLE ADS FOR THE US HISPANIC MARKET THE ACCOUNT WAS PREVIOUSLY HANDLED BY CASANOVA PENDRILL PUBLICAD OF IRVINE CALIF 9309020107 930902 INTERNATIONAL SWISSAIR GETS APPROVAL FOR PROPOSED MERGER OF 4 EUROPEAN CARRIERS SPECIAL TO THE WALL STREET JOURNAL BERN SWITZERLAND THE PLANNED MERGER OF FOUR MAJOR EUROPEAN CARRIERS RECEIVED A BIG BOOST WHEN THE SWISS GOVERNMENT GAVE SWISSAIR THE GOAHEAD ON THE DEAL THE PLAN CALLED ALCAZAR WOULD LEAD TO A FOURWAY MERGER OF SWISSAIR WITH KLM ROYAL DUTCH AIRLINES SCANDINAVIAN AIRLINES SYSTEM AND AUSTRIAN AIRLINES OFFICIALS FROM THE AIRLINES SAY THEY WOULD CREATE A SINGLE COMPANY THAT WOULD AT FIRST FLY ALL FOUR BRAND NAMES BUT COULD EVENTUALLY DISPLAY A SINGLE LIVERY THE FOUR AIRLINES EXPECT TO SIGN A MEMORANDUM OF UNDERSTANDING ON THE PROJECT BY THE MIDDLE OF THIS MONTH A HOST OF REGULATORY FINANCIAL AND COMPETITIVE ISSUES STILL MUST BE RESOLVED BUT THE APPROVAL OF THE SWISS FEDERAL GOVERNMENT REMOVES ONE MAJOR CONCERN THE GOVERNMENTS OF SWEDEN DENMARK NORWAY SWITZERLAND AUSTRIA AND THE NETHERLANDS ALL OWN STAKES IN AN AIRLINE INVOLVED IN THE DEAL SOME INDUSTRY OFFICIALS FEARED NATIONAL GOVERNMENTS IN PARTICULAR THE SWISS COULD BLOCK THE DEAL ON THE BASIS OF NATIONALISTIC ARGUMENTS EARLIER THIS YEAR THE SWISS GOVERNMENT ADVISED SWISSAIR TO EXPLORE A VARIETY OF OPTIONS TO PREPARE FOR THE FUTURE BUT YESTERDAY THE SWISS GOVERNMENT FOLLOWING THE LEAD OF THE DUTCH AND THE THREE SCANDINAVIAN GOVERNMENTS SWEPT ASIDE ANY LINGERING CONCERNS THE ALLIANCE OF THE FOUR AIRLINES WILL ALLOW THEM WHILE KEEPING THEIR IDENTITY INTACT TO ACHIEVE A STRONGER MARKET POSITION AND REALIZE CONSIDERABLE EFFECTS OF SYNERGY THE SWISS GOVERNMENT SAID ONE REMAINING HURDLE IS THE PARTICIPATION OF AUSTRIAN AIRLINES WHICH IS ALSO ENTERTAINING A PARTNERSHIP OFFER FROM GERMAN NATIONAL AIRLINE LUFTHANSA BUT AUSTRIAN AIRLINES WOULD BE THE MINOR PARTNER IN THE FOURWAY LINKUP GETTING ABOUT A 10 STAKE IN THE MERGED COMPANY COMPARED WITH ABOUT 30 STAKES FOR THE OTHER THREE AIRLINES 9309020106 930902 MARKETING & MEDIA HALLMARK CARDS FOR PEOPLE WHO NEVER WRITE YOU BACK KANSAS CITY MO FOR PARENTS WHO SEND THEIR KIDS STAMPS SO THEY WILL WRITE HOME NOW COME GREETING CARDS THAT INCLUDE A FEW MINUTES OF PREPAID PHONE CALLS HALLMARK CARDS INC SAID IT WILL TESTMARKET GREETING CARDS WHICH FEATURE PHONE TIME ON SPRINT CORP'S DOMESTIC NETWORK IN SEVERAL CITIES THIS WINTER THE CARDS WILL RETAIL FOR 6 EACH GREETING CARD WILL CONTAIN A PLASTIC CARD CONTAINING A UNIQUE PHONE ACCESS NUMBER A COMPUTERIZED VOICE IN THE SPRINT SYSTEM INFORMS THE CALLER HOW MUCH TIME IS LEFT ON A CARD SO SEVERAL CALLS CAN BE MADE UNTIL ALL 10 MINUTES ARE USED THEN THE CALL IS DISCONNECTED ONE CARD FEATURES A WHISTLER'S MOTHERLIKE DRAWING WITH A PHONE IN HER LAP AND THE MESSAGE CALL YOUR MOTHER A HALLMARK SPOKESMAN SAID THE CARD MAKER INITIALLY PLANS TO ISSUE 20 EVERYDAY GREETINGS AND ABOUT 10 YEAREND HOLIDAY CARDS IN THE LINE 9309020105 930902 WHO'S NEWS LIFE PARTNERS GROUP INC LIFE PARTNERS GROUP INC DALLAS ROBERT E WITT 52 YEARS OLD WAS ELECTED A DIRECTOR OF THIS LIFE INSURANCE HOLDING COMPANY INCREASING THE SIZE OF THE BOARD TO EIGHT MEMBERS DR WITT CURRENTLY SERVES AS DEAN OF THE COLLEGE AND GRADUATE SCHOOL OF BUSINESS OF THE UNIVERSITY OF TEXAS AT AUSTIN 9309020104 930902 ROBERTO POLO IS EXTRADITED TO FACE SWISS CHARGES WASHINGTON THE JUSTICE DEPARTMENT EXTRADITED MONEY MANAGER ROBERTO POLO TO SWITZERLAND WHERE HE FACES CRIMINAL CHARGES OF EMBEZZLING CLIENTS' INVESTMENT FUNDS THE SUPREME COURT LATE TUESDAY DENIED MR POLO'S APPLICATION FOR AN EMERGENCY ORDER STOPPING THE EXTRADITION HE WAS PUT ON A PLANE FOR ZURICH THAT NIGHT A JUSTICE DEPARTMENT SPOKESMAN SAID A WELLKNOWN INTERNATIONAL ART INVESTOR MR POLO IS ACCUSED OF USING HIS CLIENTS' MONEY WITHOUT THEIR PERMISSION TO ADD TO HIS COLLECTION IN DECEMBER 1991 A SWISS MAGISTRATE ISSUED AN EXTRADITION WARRANT FOR MR POLO WHO IS AN AMERICAN CITIZEN HE WAS ARRESTED BY US AUTHORITIES IN APRIL 1992 AND WAS HELD IN A JAIL IN MIAMI WHILE HE FOUGHT EXTRADITION MR POLO HAS DENIED ANY WRONGDOING IN EARLIER CIVIL LAWSUITS IN NEW YORK MR POLO FAILED TO DEFEND HIMSELF AND HE WAS ORDERED IN FEBRUARY 1989 TO PAY 1238 MILLION TO FORMER CLIENTS PLAINTIFFS IN THOSE SUITS HAVE TRIED TO TRACK DOWN MR POLO'S ASSETS IN THE US AND EUROPE IN AN EFFORT TO COLLECT ON THAT DEFAULT JUDGMENT 9309020103 930902 WHO'S NEWS STAR BANC CORP STAR BANC CORP CINCINNATI DAVID M MOFFETT 41 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS BANK HOLDING COMPANY EFFECTIVE SEPT 20 MR MOFFETT CURRENTLY IS SENIOR VICE PRESIDENT AND ASSISTANT TREASURER OF BANKAMERICA CORP SAN FRANCISCO HE SUCCEEDS TIMOTHY J FOGARTY 36 A SENIOR VICE PRESIDENT WHO HAS BEEN ACTING CHIEF FINANCIAL OFFICER SINCE THE AUG 24 RESIGNATION OF GUST J TOTLIS 9309020102 930902 HELPWANTED ADVERTISING ROSE MODERATELY IN JULY NEW YORK THE CONFERENCE BOARD SAID ITS HELPWANTED ADVERTISING INDEX ROSE IN JULY BY A MODERATE AMOUNT INCREASING TO 100 FROM 97 IN JUNE A YEAR AGO THE FIGURE WAS 91 THE SURVEY TRACKS HELPWANTED ADVERTISING VOLUME IN 51 MAJOR NEWSPAPERS PROVIDING AN INDICATION OF LABOR MARKET CONDITIONS IT USES 1967 AS A BASE OF 100 THE LABOR MARKET CONTINUES TO SHOW ONLY MINIMAL IMPROVEMENT HIRING IN MANY AREAS OF THE COUNTRY IS STILL MUTED WITH FEW SIGNS OF ANY IMPROVEMENT SOON SAID KEN GOLDSTEIN ECONOMIST FOR THE BUSINESS RESEARCH ORGANIZATION 9309020101 930902 KODAK'S MAIN BUSINESS TO MOVE TO WASHINGTON ROCHESTER NY EASTMAN KODAK CO SET PLANS TO MOVE HEADQUARTERS FOR THE US AND CANADA REGION OF ITS CORE IMAGING BUSINESS TO WASHINGTON DC FROM ROCHESTER THE PHOTOGRAPHY HEALTHCARE AND CHEMICALS CONCERN SAID IT HASN'T CHOSEN A SITE IT PLANS TO COMPLETE THE MOVE WITHIN A YEAR ABOUT 200 SENIOR EXECUTIVES FOR THE US AND CANADA REGION OF THE IMAGING BUSINESS WOULD MOVE THAT REGION'S REMAINING 3300 WORKERS WILL CONTINUE TO WORK OUT OF ROCHESTER KODAK SAID THE MOVE WILL GIVE IT GREATER ACCESS TO ITS CUSTOMERS AND MARKETS BUT THE TIMING AND LOCATION OF THE MOVE STRUCK ANALYSTS AS ODD KODAK STILL IS SEARCHING FOR A CHIEF EXECUTIVE TO SUCCEED CHAIRMAN KAY R WHITMORE WHO WAS OUSTED IN JULY THE NEW CHIEF WON'T HAVE ANY SAY IN WHERE TO BASE THE HEADQUARTERS OF THE LARGEST REGION OF HIS BIGGEST BUSINESS YOU WOULD THINK THEY WOULD WAIT FOR THE NEW CHIEF TO BE NAMED SAID FIRST BOSTON ANALYST JACK BLACKSTOCK I WONDER IF HE WOULD CHOOSE WASHINGTON WERTHEIM SCHRODER ANALYST MICHAEL ELLMANN SAID MAYBE HE WOULD VOTE FOR ST LOUIS OR LOS ANGELES IN A MEMORANDUM TO EMPLOYEES THE REGION'S GENERAL MANAGER ROBERT T HAMILTON SAID THE BOARD HAD APPROVED THE MOVE A KODAK SPOKESMAN CONFIRMED THAT MR HAMILTON PRESENTED THE IDEA TO THE BOARD 9309020100 930902 MAZDA PLANS TO INTRODUCE A LUXURY SEDAN IN 1994 DETROIT MAZDA MOTOR CORP STRUGGLING TO GAIN MOMENTUM IN THE US MARKET WILL INTRODUCE AN ALLNEW LUXURY SEDAN IN 1994 THAT IT SALVAGED FROM THE LUXURYCAR DIVISION IT SCRAPPED LAST YEAR MAZDA SAID THE CAR WILL COME EQUIPPED WITH A 24VALVE V6 ENGINE AS WELL AS ANTILOCK BRAKES AND DUAL AIRBAGS IT WILL COMPETE HEADON WITH NISSAN MOTOR CORP'S INFINITI J30 AND BAYERISCHE MOTOREN WERKE'S 3SERIES AND 5SERIES CARS MAZDA SAID THE AUTO MAKER SAID THE CAR WHICH HASN'T YET BEEN NAMED WAS DESIGNED AS THE LEAST EXPENSIVE MODEL IN THE NOWDEFUNCT AMATI LUXURY DIVISION MAZDA HAD ABANDONED PLANS FOR THE AMATI LUXURYCAR NETWORK BECAUSE OF ITS EXPECTATION OF SLOW SALES THE SURGE OF THE YEN AGAINST THE DOLLAR AND ITS FINANCIAL SITUATION MAZDA SAID IT EXPECTS THE CAR TO BOLSTER ITS US SALES ALTHOUGH THE AUTO MAKER WOULDN'T PROVIDE SPECIFIC SALES PROJECTIONS THE COMPANY HAS BEEN STRUGGLING IN THE US RECENTLY WITH SLOW SALES AND MANAGEMENT TURMOIL MAZDA'S US SALES ARE OFF 63 TO 193284 VEHICLES THIS YEAR THROUGH JULY 31 COMPARED WITH THE YEAR EARLIER 9309020099 930902 ENTERPRISE DIVERSITY TRAINING BRINGS UNITY TO SMALL COMPANIES WORKSHOPS EASE TENSIONS SPRINGING FROM ETHNIC MULTIPLICITY IN WORKPLACE BY MELISSA LEE STAFF REPORTER OF THE WALL STREET JOURNAL FOR MORE THAN A YEAR TWO OF EMMA COLQUITT'S EMPLOYEES HAD ARGUED ABOUT RELIGION THEN ONE OF THEM A HISPANIC ROMAN CATHOLIC WOMAN APPROACHED HER OPERATIONS MANAGER WITH A COMPLAINT THE OTHER WORKER A BLACK FOLLOWER OF JEHOVAH'S WITNESSES HAD LISTENED SYMPATHETICALLY AS A CUSTOMER BASHED CATHOLICISM A PETTY OFFICE SQUABBLE NOT TO MS COLQUITT PRESIDENT AND COOWNER OF CARDIAC CONCEPTS INC A TEXAS OUTPATIENT LABORATORY THAT SPECIALIZES IN CARDIOVASCULAR TESTS SHE WORRIED THAT CONFLICTS GROWING OUT OF THE ETHNIC AND RELIGIOUS DIVERSITY OF HER TINY WORK FORCE COULD SERIOUSLY HURT PRODUCTION MOST OF HER 11 EMPLOYEES ARE WOMEN AND MINORITY MEMBERS REPRESENTING HALF A DOZEN FAITHS I HAVE THREE EMPLOYEES IN THAT OFFICE AND WHEN TWOTHIRDS OF THE STAFF ARE ARGUING WITH EACH OTHER THAT IS NOT COSTEFFECTIVE SAYS MS COLQUITT SHE DID WHAT MANY SMALLBUSINESS OWNERS NOW ARE DOING TO EASE TENSIONS SHE HIRED A CONSULTANT TO GIVE HER DIVERSE WORK FORCE A WORKSHOP ON HOW TO GET ALONG AS MORE BLACKS HISPANICS ASIANS AND OTHER ETHNIC MINORITIES JOIN THE US LABOR FORCE DIVERSITY TRAINING IS GAINING POPULARITY AMONG SMALL COMPANIES MANAGEMENT CONSULTANTS SAY UNLIKE BIG CORPORATIONS THESE COMPANIES RARELY HAVE THE INHOUSE RESOURCES TO DEAL WITH WORKPLACE CONFRONTATIONS AMONG PEOPLE OF VARYING BACKGROUNDS THEY SAY FOR SMALL BUSINESSES DIVERSITY TRAINING IS A SURVIVAL TECHNIQUE SAYS LARRAINE SEGIL A PARTNER IN THE INTERNATIONAL PRODUCTIVITY INSTITUTE A CONSULTING FIRM WITH OFFICES IN DALLAS AND LOS ANGELES WHEN ONE OR TWO PEOPLE ARE NONFUNCTIONING OR MALFUNCTIONING THEY WILL AFFECT EVERYONE IMMEDIATELY DIVERSITYTRAINING WORKSHOPS USUALLY REQUIRE EMPLOYEES AND MANAGERS TO PARTICIPATE IN ROLEPLAYING ACTIVITIES AND TO DESCRIBE THEIR OWN BACKGROUNDS AND BELIEFS MS COLQUITT RECALLS ONE EXERCISE FOR EXAMPLE THAT REQUIRED HER STAFF TO PAIR OFF AND MAKE LISTS OF STEREOTYPES OF OTHER ETHNIC GROUPS PRESENT THE WHOLE PURPOSE IS TO MAKE EMPLOYEES AWARE OF THE VALUES AND LIFESTYLES OF THEIR COLLEAGUES FROM OTHER CULTURES AND TO ACKNOWLEDGE THEIR OWN PREJUDICES SINCE HER COMPANY'S FOURHOUR TRAINING SESSION IN JUNE MS COLQUITT SAYS THERE HAVE BEEN NO DIVERSITYRELATED SQUABBLES WORKING RELATIONSHIPS BETWEEN THE HISPANIC CATHOLIC AND THE BLACK FOLLOWER OF JEHOVAH'S WITNESSES WHOSE QUARREL TRIGGERED THE OUTSIDE INTERVENTION HAVE BECOME LESS STRESSED SHE SAYS SHE ADDS THAT THE 3000 FEE FOR THE WORKSHOP WAS WELL SPENT EVEN THOUGH IT AMOUNTED TO MORE THAN JUST PETTY CASH AT A COMPANY WITH PROJECTED ANNUAL SALES THIS YEAR OF 1 MILLION IF THE STAFF UNDERSTANDS EACH OTHER BETTER AND DISPLAYS THAT IN THE WORKPLACE IT WILL CREATE A POSITIVE ENVIRONMENT FOR THE PATIENTS MS COLQUITT SAYS THEN THE PATIENTS WILL SAY POSITIVE THINGS TO THEIR DOCTORS WHO WILL THEN REFER OTHERS TO US TO BE SURE DIVERSITY TRAINING IS OFTEN A COSTLY LAST RESORT FOR SMALL BUSINESSES WITH LIMITED BUDGETS SAYS MS SEGIL OF THE INTERNATIONAL PRODUCTIVITY INSTITUTE INDEED ADDS ROBIN PARRY A PARTNER IN PARRY & ASSOCIATES MANAGEMENT CONSULTANTS SAN DIEGO OFFICE FEUDING USUALLY HAS TO GET OUT OF CONTROL BEFORE A SMALLBUSINESS OWNER WILL REACT MOST SMALL BUSINESSES GET TO A STAGE WHERE IT IS A CRISIS THEY ARE ABOUT TO LOSE A CLIENT THEY MIGHT LOSE A CLIENT OR THEY ARE LOSING MARKET SHARE MS PARRY SAYS BUT FIGHTS AREN'T ALWAYS PREREQUISITES TO CALLING FOR HELP AFTER BILL BOYD PRESIDENT OF SUNBELT MOTIVATION & TRAVEL AN INCENTIVETRAVEL AGENCY IN DALLAS REALIZED THAT CULTURAL DIFFERENCES AMONG HIS STAFF COULD HURT BUSINESS HE CALLED IN DIVERSITYTRAINING SPECIALISTS TO HELP AVOID POTENTIAL CONFLICTS MR BOYD SAYS FOR EXAMPLE THAT SECRETARIES FROM THE SOUTH TEND TO CHAT WITH CUSTOMERS AFTER BOOKING A RESERVATION INQUIRING ABOUT THEIR FAMILIES AND OTHER PERSONAL MATTERS THOSE FROM THE EAST ON THE OTHER HAND ARE MORE LIKELY TO BE ALL BUSINESS THESE DIFFERENCES IN APPROACH MIGHT ALIENATE OR CONFUSE CUSTOMERS MR BOYD SAYS OUR FOCUS WAS HOW TO MELT TOGETHER TO PROVIDE A UNITED FRONT TO OUR DIFFERENT CUSTOMERS SAYS THE BUSINESS OWNER WHO PROJECTS SALES OF 70 MILLION THIS YEAR FOR HIS COMPANY I FELT OUR MANAGERS ALL NEED TO BRING DIVERSITY TO THE FOREFRONT OF OUR AWARENESS SOME EMPLOYERS ARE USING DIVERSITY TRAINING TO SMOOTH TENSIONS IN THE WORKPLACE EVEN BEFORE A CRISIS ERUPTS BILL EASTWOOD EXECUTIVE DIRECTOR OF MENTAL HEALTH SYSTEMS IN SAN DIEGO CALIF WHICH PROVIDES MENTALHEALTH TREATMENT DRUG AND ALCOHOL REHABILITATION SERVICES AND VOCATIONAL TRAINING IS ONE OF HIS NONPROFIT ORGANIZATION'S 473 EMPLOYEES 106 BELONG TO ETHNIC MINORITIES AND 220 ARE DISABLED MR EASTWOOD SAYS HE IS WILLING TO SPEND 3000 FOR DIVERSITYTRAINING WORKSHOPS NEXT SPRING HE WANTS HIS STAFF TO DEAL MORE EFFECTIVELY WITH THE ORGANIZATION'S DIVERSE CUSTOMER BASE AS WELL AS WITH EACH OTHER FOR EXAMPLE ONE OFFICE THAT IS STAFFED BY A WHITE AN ASIAN AND A HISPANIC PROVIDES SUBSTANCEABUSE COUNSELING TO CLIENTS WHO ARE 40 HISPANIC I'M SURE THAT WHEN I TALK TO STAFF WHO ARE ETHNIC MINORITIES I SAY THINGS INADVERTENTLY THAT MAY BE INSENSITIVE SAYS MR EASTWOOD WHOSE COMPANY HAS A SELFIMPOSED AFFIRMATIVEACTION HIRING PROGRAM UNDERSTANDING BREEDS BETTER WORKING RELATIONSHIPS DIVERSITYTRAINING CONSULTANTS CAUTION THAT TRAINING WORKSHOPS WHICH TYPICALLY LAST ONLY ONE DAY HAVE LIMITED IMPACT WITHOUT ANY FOLLOWUP THE BIGGEST MYTH IS THAT WE GIVE THE TRAINING WE HOLD HANDS AND SING WE ARE THE WORLD' AND THINGS ARE ALL BETTER BUT THAT'S NOT TRUE SAYS HATTIE HILLSTORKS MS SEGIL'S PARTNER IN THE INTERNATIONAL PRODUCTIVITY INSTITUTE IF THE BOSS USES DIVERSITY TRAINING AS A BANDAID THE PROBLEMS OFTEN RECUR 9309020098 930902 LEISURE & ARTS BESTSELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9309020097 930902 DEERE PLANS OFFERING OF SEVEN MILLION SHARES FOR LATER THIS MONTH MOLINE ILL DEERE & CO SEEKING TO CAPITALIZE ON THE RECENT SHARP UPTURN IN ITS SHARE PRICE DISCLOSED PLANS FOR A PUBLIC OFFERING OF SEVEN MILLION NEW COMMON SHARES VALUED AT NEARLY 500 MILLION THE AGRICULTUREEQUIPMENT MANUFACTURER HAS ABOUT 77 MILLION COMMON SHARES OUTSTANDING AT PRESENT THE PLANNED OFFERING THUS REPRESENTS A STAKE OF APPROXIMATELY 83 MERRILL LYNCH & CO WILL LEAD THE UNDERWRITERS IN THE OFFERING WHICH IS EXPECTED TO TAKE PLACE IN THE LATTER PART OF THIS MONTH THE SECURITIES AND EXCHANGE COMMISSION CLEARED THE SHELF REGISTRATION THAT COVERS THE OFFERING IN JULY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DEERE SHARES SLIPPED 2625 OR 36 TO 7025 AT THAT PRICE THE OFFERING WOULD YIELD GROSS PROCEEDS OF 4918 MILLION DEERE'S SHARES HAVE NEARLY DOUBLED IN PRICE SINCE LAST NOVEMBER WHEN THE STOCK TRADED AS LOW AS 3675 THE COMPANY'S SALES ARE UP AND MARGINS HAVE CONSIDERABLY STRENGTHENED AS A RESULT OF WHAT'S BEING VIEWED AS THE EARLY STAGES OF AN UP CYCLE FOR THE FARM EQUIPMENT SECTOR THE STOCKSALE PROCEEDS WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE DEBT REDUCTION THE COMPANY SAID 9309020096 930902 CREDIT RATINGS NATIONAL MEDICAL DEBT OF ABOUT 400 MILLION IS DOWNGRADED BY S&P NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATING ON ABOUT 400 MILLION OF NATIONAL MEDICAL ENTERPRISES INC SENIOR DEBT TO DOUBLEB FROM TRIPLEBMINUS THE RATING AGENCY SAID THE DOWNGRADE REFLECTS RISKS RELATED TO THE GOVERNMENT INVESTIGATION INTO THE CORPORATE BUSINESS PRACTICES OF THE SANTA MONICA CALIF HOSPITAL CHAIN LAST WEEK HUNDREDS OF FEDERAL AGENTS RAIDED MORE THAN 20 NATIONAL MEDICAL FACILITIES AND SERVED SEARCH WARRANTS FOR VARIOUS CATEGORIES OF RECORDS AT ITS HOSPITALS MOODY'S INVESTORS SERVICE INC ON MONDAY SAID IT PLACED NATIONAL MEDICAL'S UNSECURED SENIOR DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE FROM ITS BAA3 RATING BILL IHLE A COMPANY SPOKESMAN SAID WE THINK THIS ACTION IS UNCALLED FOR IT'S AN UNFORTUNATE REACTION TO THE MEDIA COVERAGE AND IT SUGGESTS STANDARD & POOR'S SHOULD REEXAMINE OUR FINANCIAL STATEMENTS 9309020095 930902 KUWAIT ACKNOWLEDGES TALKS ON OIL PRIVATIZATION KUWAIT CITY KUWAITI OIL MINISTER ALI ALBAGHLI YESTERDAY CONFIRMED REPORTS THAT KUWAIT WAS HOLDING TALKS WITH FOREIGN OIL COMPANIES THAT COULD LEAD TO THE PRIVATIZATION OF MANY OF ITS OIL OPERATIONS IN RESPONSE TO QUESTIONS ABOUT THE TALKS THE KUWAITI MINISTER SAID REPORTS ABOUT DISCUSSION OF PRIVATIZATION BEING AT AN ADVANCED STAGE ARE LIKELY EXAGGERATED BUT ALL OPTIONS FOR COOPERATION WITH COMPANIES ARE OPEN THERE ARE MANY ALTERNATIVES AVAILABLE TO KUWAIT WE HAVE NOT REACHED ANYTHING FINAL THOSE DISCUSSIONS COULD LEAD TO PRECEDENTSETTING PRODUCTIONSHARING AGREEMENTS THAT WOULD MEAN THE REVERSAL OF A 1975 NATIONALIZATION OF KUWAIT'S OIL FIELDS KUWAIT BOUGHT OUT FOREIGN FIRMS' OWNERSHIP OF ITS NATIONAL OIL RESERVES DURING THE OILBOOM YEARS HOWEVER THE OIL SECTOR WAS SEVERELY DAMAGED DURING IRAQ'S SEVENMONTH OCCUPATION OF KUWAIT AFTER THE AUGUST 1990 INVASION BY IRAQ THE TINY EMIRATE HAS BEEN STRUGGLING TO REBUILD ITS INDUSTRY SINCE THEN 9309020094 930902 WEDNESDAY'S MARKETS BONDS RISE AND STOCKS ARE MIXED BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL WEAK ECONOMIC NEWS BOOSTED BOND PRICES BUT LEFT STOCK PRICES MIXED THE DOLLAR ROSE AGAINST THE YEN BUT FELL AGAINST THE MARK THE DOW JONES INDUSTRIAL AVERAGE FELL 615 POINTS TO 364510 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 041 TO 46315 BUT THE NASDAQ COMPOSITE INDEX GAINED 331 TO A RECORD 74615 INVESTORS WERE GREETED BY A RAFT OF NEWS THAT FURTHER CONFIRMS THE SLUGGISHNESS OF THE ECONOMY A DECLINE IN THE INDEX OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT IN AUGUST INDICATED THAT THE MANUFACTURING SECTOR REMAINS WEAK AND THE COMMERCE DEPARTMENT REPORTED THAT PERSONAL INCOME FELL IN JULY IF THAT WEREN'T ENOUGH THE WHITE HOUSE'S COUNCIL OF ECONOMIC ADVISERS LOWERED ITS ESTIMATE FOR GROWTH IN GROSS DOMESTIC PRODUCT FOR THIS YEAR TO 2 FROM A 31 FORECAST ISSUED IN APRIL THE BOND MARKET WHICH STARTED THE DAY ON A WEAK NOTE TURNED AROUND ON THE ECONOMIC NEWS MANY INVESTORS ARE BETTING THAT THE SLOW RECOVERY MEANS INFLATION WILL BE AT WORST ONLY MODEST BUT JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH WORRIES THAT ENTHUSIASM FOR BONDS IS APPROACHING FRENZIED LEVELS WE'RE SEEING THE KIND OF SPECULATION AND MONEY FLOWS INTO BONDS THAT TENDS TO BE ASSOCIATED WITH AN IMPORTANT TOP IN PRICES HE SAID WHILE THE INDUSTRIAL AVERAGE ENDED LOWER OVERTHECOUNTER STOCKS CONTINUED TO BE STRONG PARTLY BECAUSE SMALL STOCKS AREN'T SO VULNERABLE TO WEAKNESS IN THE GLOBAL ECONOMY MR SOLLOWAY SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 027 TO 11275 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 245 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1019 ISSUES ROSE AND 939 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 609 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16593 MARKS AND 10530 YEN COMPARED WITH 16765 MARKS AND 10475 YEN TUESDAY 9309020093 930902 INTERNATIONAL YELTSIN SUSPENDS RUTSKOI AIDE IN SURPRISE MOVE REMOVAL OF FOE AND ALLY FOLLOWS PARTISAN CLAIMS OF POLITICAL CORRUPTION BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN UNEXPECTEDLY SUSPENDED HIS VICE PRESIDENT ALEXANDER RUTSKOI AND A SENIOR VICE PREMIER VLADIMIR SHUMEIKO CITING CONCERNS OVER ALLEGATIONS OF CORRUPTION FOR WEEKS ALLEGATIONS OF HIGHLEVEL CORRUPTION HAVE BEEN BANDIED ABOUT BETWEEN WARRING CAMPS IN RUSSIA'S DIVIDED GOVERNMENT NO CRIMINAL CHARGES HAVE BEEN FILED AND THE ALLEGATIONS OFTEN SEEM TO BE POLITICALLY MOTIVATED BUT MR YELTSIN APPEARS TO HAVE UPPED THE ANTE MAKING A DRAMATIC GESTURE JUST AS THE WEARY RUSSIAN POPULACE WAS WONDERING IF ANYONE WOULD EVER BE HELD RESPONSIBLE FOR WHAT IS PERCEIVED TO BE WIDESPREAD HIGHLEVEL CORRUPTION WHILE MR YELTSIN'S LEGAL AUTHORITY TO SUSPEND THE TWO MEN IS QUESTIONABLE HE HAS CARVED OUT A POSITION THAT AT LEAST SUPERFICIALLY RISES ABOVE PARTISAN POLITICS TO BE SURE MR RUTSKOI IS AN OUTSPOKEN CRITIC OF MR YELTSIN BUT MR SHUMEIKO HAD BECOME ONE OF THE PRESIDENT'S KEY SUPPORTERS SINCE HIS APPOINTMENT TO A HIGHLEVEL CABINET POST LAST DECEMBER MEANWHILE A CRUCIAL ALLY OF MR RUTSKOI PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV SAID THE SUSPENSIONS WERE UNLAWFUL AND SHALL NOT BE CARRIED OUT THE OFFICIAL ITARTASS NEWS AGENCY REPORTED I HAVE NO DOUBTS THAT PARLIAMENT WILL ABROGATE THE DECREE THE TWO MEN WERE SUSPENDED AS OF SEPT 1 DUE TO DAMAGE INFLICTED ON STATE AUTHORITY AS A RESULT OF RECIPROCAL ACCUSATIONS OF CORRUPTION A PRESIDENTIAL SPOKESMAN SAID THE SUSPENSIONS ARE TEMPORARY BUT MAY BE PROLONGED DEPENDING UPON THE FINAL RESULTS OF ANY INVESTIGATIONS ANATOLI KRASIKOV ANOTHER PRESIDENTIAL SPOKESMAN SAID THE PRESIDENT IS COMMITTED TO FIGHTING CORRUPTION BY ALL LEGAL MEANS NO MATTER WHO IS INVOLVED EVEN PEOPLE CLOSE TO HIM OR IN HIS POLITICAL CAMP THE ACCUSATIONS ARE SERIOUS AND AN INVESTIGATION IS WARRANTED BUT GIVEN THE EXTREMELY PARTISAN NATURE OF RUSSIAN POLITICS IT IS POSSIBLE THE DECISION TO SUSPEND MR SHUMEIKO IS A FORM OF CAMOUFLAGE AS MR YELTSIN GOES AFTER HIS REAL TARGET MR RUTSKOI THE VICE PRESIDENT HAD BEEN SCHEDULED TO TRAVEL PRIVATELY TODAY TO THE SIBERIAN COALMINING REGION OF VORKUTA OFFICIALS IN VORKUTA EXPRESSED FEARS THAT MR RUTSKOI WHO PLANS TO RUN FOR PRESIDENT WHENEVER NEW ELECTIONS ARE HELD WOULD TRY TO WHIP UP ANTIYELTSIN UNREST AMONG DISGRUNTLED MINERS WHO HAVE ALREADY THREATENED TO STRIKE ACCORDING TO ITARTASS MR YELTSIN HAS TRIED TO NEUTRALIZE MR RUTSKOI AFTER THE VICE PRESIDENT STEPPED UP ATTACKS THIS YEAR ON THE PRESIDENT MR YELTSIN TOOK AWAY MR RUTSKOI'S CAR PART OF HIS SECURITY DETAIL AND STRIPPED HIM OF ALL OFFICIAL DUTIES CONSTITUTIONALLY BARRED FROM FIRING MR RUTSKOI MR YELTSIN HAS URGED THE VICE PRESIDENT TO RESIGN IN AN ARTICLE TUESDAY IN THE CONSERVATIVE NEWSPAPER RURAL LIFE MR RUTSKOI ACCUSED MR YELTSIN AND HIS SUPPORTERS OF REMAINING IN AN ENDLESS STATE OF DRUNKENNESS AND BOOZINESS CORRUPTION CHARGES HAVE DOMINATED LOCAL NEWS COVERAGE IN RECENT WEEKS AS OFFICIALS PLAY OUT THEIR LONGRUNNING POWER STRUGGLE BY CALLING NEWS CONFERENCES TO ACCUSE RIVALS OF MISDEEDS THE FLURRY OF UNPROVED CHARGES HAS PRODUCED SO MUCH CYNICISM THAT SEVERAL LEADING RUSSIAN JOURNALISTS HAVE ANNOUNCED THEY WILL NO LONGER REPORT SUCH ALLEGATIONS THE UNSUBSTANTIATED ACCUSATIONS AGAINST MR RUTSKOI HAVE ATTRACTED THE MOST ATTENTION IN RECENT WEEKS GOVERNMENT LAWYERS BRANDISHING DOCUMENTS HAVE ALLEGED THAT MR RUTSKOI USED THE RENAISSANCE FOUNDATION A CHARITY FUND WITH LINKS TO THE FORMER COMMUNIST PARTY TO FUNNEL MILLIONS OF DOLLARS INTO A SECRET SWISS BANK ACCOUNT MR RUTSKOI A 45YEAROLD HERO OF THE AFGHANISTAN WAR DISMISSES THE CHARGES AS A SMEAR CAMPAIGN DIRECTED BY MR YELTSIN'S SUPPORTERS MR RUTSKOI SPEAKING TO JOURNALISTS AT AN AIRPORT EN ROUTE TO VORKUTA SAID MR YELTSIN'S DECREE HAS ABSOLUTELY NO VALIDITY ITARTASS REPORTED IT WAS MR RUTSKOI HIMSELF WHO FIRST LEVELED CHARGES AGAINST MR SHUMEIKO A 48YEAROLD FORMER FACTORY DIRECTOR WHO IS NOW THE SECONDRANKING CABINET MEMBER AND A LEADING PROPONENT OF MR YELTSIN'S REFORMS MR RUTSKOI AND RUSSIA'S CHIEF PROSECUTOR VALENTIN STEPANKOV ACCUSED MR SHUMEIKO OF EMBEZZLING MORE THAN 14 MILLION IN PUBLIC FUNDS THAT HAD BEEN INTENDED TO IMPORT BABY FOOD FOR RUSSIA MR SHUMEIKO SAYS THE MONEY WASN'T DIVERTED BUT WENT TO BUY MATERIALS FOR A BABYFOOD FACTORY NOW UNDER CONSTRUCTION IN MOSCOW BUT RUSSIA'S PARLIAMENT VOTED NONETHELESS TO OPEN A CRIMINAL INVESTIGATION OF MR SHUMEIKO MR SHUMEIKO'S PRESS SECRETARY SAID MR SHUMEIKO HIMSELF HAD REQUESTED HIS SUSPENSION TO FIGHT THE CHARGES AGAINST HIM THE SUSPENSION IS TRULY JUST TEMPORARY THE PRESS SECRETARY GRIGORY BUKHVALOV SAID SHUMEIKO IS FULFILLING HIS CIVIC DUTY TO HELP THE INVESTIGATION BUT NOT A SINGLE ACCUSATION BY RUTSKOI AGAINST SHUMEIKO HAS PROVED TO BE TRUE 9309020092 930902 RESCARE TO BUY GROUP HOMES LOUISVILLE KY RESCARE INC SAID IT WOULD ACQUIRE AS MANY AS 59 GROUP HOMES IN TEXAS SERVING ABOUT 350 MENTALLY RETARDED PEOPLE THE COMPANY NOW HAS 139 FACILITIES IN SEVEN STATES SERVING 2100 PEOPLE TERMS WEREN'T DISCLOSED BUT THE COMPANY SAID IT EXPECTS ANNUAL REVENUE OF ABOUT 10 MILLION FROM THE HOMES WHICH WERE PRIVATELY OWNED IT WILL OPERATE AND LEASE THE HOMES SUBJECT TO AN AGREEMENT TO PURCHASE THEM UNDER CERTAIN CONDITIONS OVER THE NEXT THREE YEARS RESCARE REPORTED 1992 REVENUE OF 869 MILLION 9309020091 930902 CHAIRMAN OF CARL KARCHER ENTERPRISES MAY SEEK TO OUST SOME BOARD MEMBERS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF CARL N KARCHER REBUFFED IN RECENT ATTEMPTS TO CONVINCE THE BOARD OF CARL KARCHER ENTERPRISES INC TO PURSUE HIS BUSINESS AGENDA IS MOUNTING A PLAN IN WHICH HE MAY TRY TO OUST DIRECTORS WHO REFUSE TO SUPPORT HIM MR KARCHER 76 YEARS OLD STEPPED DOWN AS CHIEF EXECUTIVE OF THE FASTFOOD CHAIN IN DECEMBER BUT REMAINS CHAIRMAN HE SAID IN A STATEMENT THAT HIS PERSONAL FINANCES HAVE SUFFERED DUE TO THE COMPANY'S DISAPPOINTING PERFORMANCE THE DECLINE HAS LED ONE BANK THAT HOLDS 20 OF THE COMPANY'S STOCK PUT UP BY MR KARCHER AS COLLATERAL FOR LOANS TO DECLARE VARIOUS DEFAULTS THE EXECUTIVE WOULDN'T ELABORATE BUT HIS FINANCIAL ADVISER SAID A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION WOULD PROVIDE DETAILS THE THREATS BY MR KARCHER COME AS NEW MANAGEMENT IS TRYING TO TURN THE COMPANY AROUND DONALD E DOYLE THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OUTLINED A COSTCUTTING PLAN IN MARCH THAT ALSO INVOLVED SQUEEZING HIGHER MARGINS OUT OF THE CARL'S JR OUTLETS REVITALIZING MARKETING PROGRAMS AND SELLING THE CHAIN'S FOOD AS A GOOD VALUE MR DOYLE SAID THEN THAT MR KARCHER AGREED WITH THOSE EFFORTS BUT MR KARCHER WHO FOUNDED THE CHAIN SAID YESTERDAY THAT THE PLAN HE PRESENTED TO THE BOARD RECENTLY IS THE MOST LIKELY PLAN TO PRESERVE AND ENHANCE SHAREHOLDER VALUE AMONG OTHER THINGS THE PLAN CALLS FOR A TEST OF A JOINT MARKETING CONCEPT IN WHICH CARL'S JR RESTAURANTS WOULD OPERATE ALONGSIDE OTHER FASTFOOD OPERATORS IN THE SAME RETAIL ENVIRONMENT THE BOARD SAID IN A BRIEF STATEMENT THAT IT WILL HAVE DISCUSSIONS WITH MR KARCHER WITH A VIEW TOWARD RESOLVING HIS AND THE DIRECTORS' MUTUAL CONCERNS BUT THE BOARD HAS RESISTED MR KARCHER'S OVERTURES BEFORE LATE LAST YEAR IT REJECTED A 114 MILLION BID BY MR KARCHER TO TAKE THE COMPANY PRIVATE ONE BOARD MEMBER SAID THE OFFER WASN'T ADEQUATE AND WASN'T IN THE BEST INTERESTS OF SHAREHOLDERS SINCE GOING PUBLIC IN 1981 THE COMPANY HAS OFTEN ATTRACTED PUBLICITY IN 1989 MR KARCHER AND SIX FAMILY MEMBERS PAID 664000 TO SETTLE SECURITIES AND EXCHANGE COMMISSION CHARGES OF INSIDER TRADING MR KARCHER SAID IN HIS STATEMENT THAT HE IS REVIEWING MEANS OF ENSURING THAT A MAJORITY OF THE BOARD IS FULLY COMMITTED TO PURSUING HIS STRATEGY IF NEGOTIATIONS FAIL WITH BOARD MEMBERS HE SAID HE WILL CONSIDER SOLICITATION OF PROXIES OR WRITTEN CONSENTS TO REPLACE EXISTING DIRECTORS WITH DIRECTORS SUPPORTIVE OF HIS PROGRAM HE SAID HE PLANS TO ACT QUICKLY MR KARCHER SAID HE AND RELATED PARTIES OWN ABOUT 34 OF THE COMPANY'S STOCK AND THUS ARE ENTITLED TO CALL A SPECIAL MEETING OF SHAREHOLDERS WITHOUT ACTION BY THE COMPANY HE WOULDN'T SAY HOW MANY OF THE SEVEN DIRECTORS BALKED AT HIS PLANS MR KARCHER SAID HE IS EXPLORING METHODS TO RESTRUCTURE HIS PERSONAL FINANCES WITH INVESTMENT BANKERS HE SAID HE BELIEVES THAT AN ACCEPTABLE RESTRUCTURING WILL OCCUR WITH THE BANK WITH WHICH HE IS CURRENTLY IN DEFAULT EDWARD PASQUALE HIS FINANCIAL CONSULTANT WOULDN'T NAME THE BANK AND SAID ONLY THAT THE BANK DECLARED THE DEFAULTS RECENTLY THERE ISN'T A FIXED DEADLINE LOOMING ON MR KARCHER'S LOANS HE SAID IN COMPOSITE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET CARL KARCHER ENTERPRISES SHARES CLOSED UP 625 CENTS AT 9625 9309020090 930902 HONDA IN BID TO REVIVE SLUGGISH SALES HOLDS LINE ON BASE PRICE OF NEW ACCORD BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL HONDA MOTOR CO SAID THE BASE PRICE OF ITS NEW ACCORD SEDAN WON'T CHANGE FROM THE CURRENT LEVEL AND THAT OTHER NEW ACCORD MODELS WILL BE PRICED ONLY AS MUCH AS 24 HIGHER THAN CURRENT LEVELS THE MOVES SIGNAL THAT HONDA VIEWS PRICING AS CRUCIAL TO THE SUCCESS OF ITS REDESIGNED ACCORD HONDA HAS LOST SOME OF ITS VALUEFORMONEY IMAGE BY RAISING PRICES TOO AGGRESSIVELY IN RECENT YEARS SAID THOMAS G ELLIOTT HONDA EXECUTIVE VICE PRESIDENT WE'RE TRYING TO GET SOME OF THAT BACK A LOT IS RIDING ON THE NEW ACCORD ONCE THE BESTSELLING CAR IN AMERICA ANALYSTS SAY THE SEDAN WILL EITHER RESULT IN A TURNAROUND FOR HONDA IN THE US OR FURTHER WEAKEN ITS POSITION IN THIS MARKET SO GOES THE ACCORD SO GOES HONDA SAID CHRISTOPHER CEDERGREN AN AUTO ANALYST WITH AUTOPACIFIC GROUP INC IN SANTA ANA CALIF THE SUCCESS OF THE ACCORD WILL CLEARLY DECIDE THE SUCCESS OF HONDA LANGUISHING SALES OF THE ACCORD HAVE DRAGGED DOWN HONDA'S OVERALL US SALES 11 TO 395142 VEHICLES THIS YEAR THROUGH JULY 31 COMPARED WITH THE YEAR EARLIER THE 1994 ACCORD SEDAN REDESIGNED TO APPEAL TO YOUNGER BUYERS WHILE HOLDING ON TO THE BABY BOOMERS WHO ARE ITS CORE CUSTOMERS WILL HAVE A BASE PRICE OF 14330 UNCHANGED FROM THE PREVIOUS MODEL THE ACCORD LX WILL CARRY A BASE STARTING PRICE OF 17230 UP 24 OR 400 FROM THE 1993 MODEL THE ACCORD EX EQUIPPED WITH AUTOMATIC TRANSMISSION ANTILOCK BRAKES AND AIR CONDITIONING WILL COST 20500 UP 2 OR 400 FROM THE PREVIOUS MODEL THE ACCORD'S PRIMARY COMPETITORS TOYOTA MOTOR CORP'S CAMRY AND FORD MOTOR CO'S TAURUS HAVEN'T RELEASED 1994 PRICES THE 1993 CAMRY SEDAN STARTS AT 15308 BUT JUMPS TO 21433 WHEN AUTOMATIC TRANSMISSION ANTILOCK BRAKES AND OTHER AMENITIES SUCH AS POWER WINDOWS AND LOCKS ARE ADDED THE TAURUS MEANWHILE STARTS AT 15700 BUT COSTS 17433 WITH THOSE ADDITIONAL FEATURES THE 1994 ACCORD SEDAN IS A SLICKER AND MORE SPORTY CAR THAN ITS PREDECESSOR WHICH WAS ADMIRED FOR ITS RELIABILITY BUT CRITICIZED SHARPLY FOR ITS BLAND STYLING THE CAR COMES WITH A MORE POWERFUL ENGINE THAN THE PREVIOUS ACCORD AND LIKE ALL 1994 HONDAS IS EQUIPPED WITH DUAL AIRBAGS HONDA EXPECTS TO SELL 400000 ACCORDS ANNUALLY IN THE US AT ITS PEAK IN 1990 HONDA SOLD 417179 ACCORDS WITH FIERCER COMPETITION IN THE MARKET'S MIDSIZE SEGMENT HOWEVER THE AUTO MAKER DOESN'T EXPECT SALES TO REACH THAT LEVEL THE 1994 ACCORD WILL NOT RETURN HONDA TO THE DAYS WHEN THE CARS SOLD ABOVE STICKER SAID TAKEO OKUSA EXECUTIVE VICE PRESIDENT OF HONDA'S US SALES OPERATIONS HONDA ALSO ANNOUNCED PRICE INCREASES FOR THE REST OF ITS 1994 CARS THE BASE PRICE OF HONDA'S LEAST EXPENSIVE CAR THE CIVIC WILL RISE 5 TO 9400 FROM THE CURRENT 8950 THE STARTING PRICE OF THE PRELUDE WILL INCREASE 4 TO 18100 FROM THE CURRENT 17400 SEPARATELY THE AUTO MAKER ANNOUNCED A 25 MILLION EXPANSION OF ITS RESEARCH AND DEVELOPMENT FACILITIES IN OHIO 9309020089 930902 STEWART ENTERPRISES ACQUISITIONS NEW ORLEANS STEWART ENTERPRISES INC SAID IT ACQUIRED FOUR FUNERAL HOMES IN SAN JUAN PUERTO RICO AND ONE IN THE TAMPA / ST PETERSBURG FLA AREA TERMS WEREN'T DISCLOSED 9309020088 930902 BUSINESS BRIEFS NEW JERSEY RESOURCES CORP'S OIL AND GAS SUBSIDIARY ACQUIRED CERTAIN OIL AND GAS PROPERTIES IN KANSAS AND UTAH FROM MARATHON OIL CO FOR 5 MILLION RAMSAY HEALTH CARE INC A PSYCHIATRIC SERVICE COMPANY SOLD A PSYCHIATRIC HOSPITAL FACILITY IN FAYETTEVILLE NC FOR 123 MILLION PARAMOUNT COMMUNICATIONS INC ACQUIRED TELEVISION STATION WKBD IN DETROIT FROM COX ENTERPRISES INC FOR 105 MILLION GANNETT CO AGREED TO SELL ITS TWO KANSAS CITY MO RADIO STATIONS KCMOAM AND KCMOFM TO BONNEVILLE INTERNATIONAL CORP SALT LAKE CITY SNAPON TOOLS CORP AGREED TO BUY THE ASSETS OF JH WILLIAMS INDUSTRIAL PRODUCTS INC A COLUMBUS GA HANDTOOL MAKER TERMS WEREN'T DISCLOSED CODEALARM INC HAS SIGNED A 21 MILLION CONTRACT WITH FORD MOTOR CO TO SUPPLY VEHICLE SECURITY SYSTEMS TO ITS 5100 NORTH AMERICAN DEALERSHIPS THROUGH 1996 WELLSFORD RESIDENTIAL PROPERTY TRUST ACQUIRED THREE MULTIFAMILY PROPERTIES IN SAN ANTONIO WITH 569 UNITS FOR ABOUT 143 MILLION 9309020087 930902 HAL INCREASES EQUITY FOR CREDITORS EMPLOYEES IN NEW RESTRUCTURING PLAN HONOLULU HAL INC THE LOSSPLAGUED PARENT COMPANY OF HAWAIIAN AIRLINES SAID IT CHANGED ITS RESTRUCTURING PLAN REALLOCATING EQUITY TO SWEETEN THE DEAL FOR CREDITORS AND EMPLOYEES AND MANAGERS LOSERS UNDER THE REVISED PLAN WOULD BE HAL'S CURRENT STOCKHOLDERS WHOSE PIECE OF THE EQUITY PIE WOULD BE SLASHED TO 5 FROM 34 HAL WHICH HAS BEEN TROUBLED BY A BLOATED COST STRUCTURE AND PERIODIC FARE WARS SAID THE REALLOCATION OF EQUITY WAS NECESSARY TO WIN APPROVAL FOR THE PLAN IN LIGHT OF COMMITMENTS AND CONCESSIONS REQUIRED OF EMPLOYEE AND CREDITOR GROUPS UNDER RESTRUCTURING THE REVISED PLAN PROVIDES FOR CREDITORS TO RECEIVE 715 OF THE COMPANY'S OUTSTANDING STOCK UP FROM 51 AS PROVIDED UNDER THE ORIGINAL RESTRUCTURING PLAN EMPLOYEES ARE NOW TO RECEIVE 175 OF THE COMPANY'S STOCK UP FROM 15 AS ORIGINALLY PROVIDED UNDER THE NEW EQUITY PLAN HAL SAID THE RESTRUCTURED COMPANY WILL RESERVE 6 OF COMPANY STOCK FOR INCENTIVE COMPENSATION FOR COMPANY MANAGEMENT HAL HAS BEEN NEGOTIATING PRODUCTIVITY AGREEMENTS WITH VARIOUS EMPLOYEE GROUPS IN AN EFFORT TO CUT ITS LABOR COSTS BY AS MUCH AS 10 A YEAR HAL SAID THE REVISED PLAN HAS BEEN FAVORABLY RECEIVED BY MEMBERS OF ITS CREDITORS STEERING COMMITTEE WHICH INCLUDES AIRLINE AND ENGINE LESSORS AND EMPLOYEE REPRESENTATIVES DESPITE THE SHARP REDUCTION IN EQUITY FOR CURRENT STOCKHOLDERS A COMPANY SPOKESMAN SAID HAL HADN'T HEARD OF OPPOSITION FROM SHAREHOLDER GROUPS ADDING THE COMPANY EXPECTS APPROVAL OF THE REVISED RESTRUCTURING PLAN WITHIN THE NEXT COUPLE OF WEEKS 9309020086 930902 BUSINESS BRIEF OFFSHORE PIPELINES INC COMPANY SEES SURGE IN NET FOR FISCAL FOURTH QUARTER OFFSHORE PIPELINES INC EXPECTS TO REPORT HIGHER FISCAL FOURTHQUARTER PROFIT OF 5 MILLION TO 55 MILLION OR 37 CENTS TO 40 CENTS A SHARE COMPARED WITH NET INCOME OF 908000 OR EIGHT CENTS A SHARE A YEAR EARLIER SAID RICHARD FOREMAN PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE MARINE CONSTRUCTION SERVICES COMPANY THE 1992 FOURTHQUARTER RESULTS INCLUDED A CHARGE OF 25 MILLION OR ABOUT 30 CENTS A SHARE RELATED TO A DEBT WRITEOFF REVENUE FOR THE 1993 FOURTH QUARTER ENDED JULY 31 IS ESTIMATED TO HAVE RISEN 30 FROM THE YEARAGO PERIOD TO BETWEEN 95 MILLION AND 100 MILLION FOR THE FISCAL YEAR OFFSHORE EXPECTS NET INCOME TO HAVE MORE THAN DOUBLED TO THE RANGE OF 139 MILLION TO 145 MILLION OR 113 TO 118 A SHARE ON MORE SHARES REVENUE FOR THE YEAR IS EXPECTED TO BE BETWEEN 335 MILLION AND 340 MILLION OR ABOUT 7 TO 8 LESS THAN THE 369 MILLION REPORTED LAST YEAR 9309020085 930902 BUSINESS BRIEF SEAGRAM CO NET ROSE 56 IN 2ND PERIOD INVESTMENT IN DUPONT CITED SEAGRAM CO'S NET INCOME JUMPED 56 FOR ITS FISCAL SECOND QUARTER DRIVEN BY A SHARPLY LARGER CONTRIBUTION FROM THE COMPANY'S 243 INVESTMENT IN DUPONT CO BUT OPERATING PROFIT WAS FLAT IN SEAGRAM'S MAINSTAY SPIRITS AND BEVERAGE BUSINESS FOR THE QUARTER ENDED JULY 31 NET WAS 170 MILLION OR 46 CENTS A SHARE UP FROM 109 MILLION OR 29 CENTS A SHARE AYEAR EARLIER SALES ROSE 2 TO 144 BILLION FROM 141 BILLION OPERATING PROFIT IN THE COMPANY'S MAIN BUSINESS ROSE SLIGHTLY TO 158 MILLION FROM 156 MILLION SEAGRAM'S SHARE OF UNREMITTED DUPONT EARNINGS ROSE TO 51 MILLION COMPARED WITH A 6 MILLION LOSS THE YEAR BEFORE PRIMARILY AS A RESULT OF NONRECURRING CHARGES RECORDED IN 1992 UNDER US ACCOUNTING RULES HOLDERS OF LARGE STAKES IN OTHER COMPANIES MAY CLAIM AS UNREMITTED EARNINGS THEIR PERCENTAGE INTEREST IN THOSE COMPANIES' PROFITS EVEN THOUGH THEY DON'T ACTUALLY RECEIVE THE MONEY TROPICANA'S OPERATING PROFIT ROSE 8 IN THE QUARTER TO 28 MILLION AND SEAGRAM SAID TROPICANA'S OPERATING INCOME WOULD IMPROVE SUBSTANTIALLY FROM 1992 LEVELS SEAGRAM SAID ITS SHARE OF THE READYTODRINK ORANGE JUICE MARKET ROSE TO 37 FROM 34 IN THE SECOND QUARTER 9309020084 930902 BUSINESS BRIEF MEDAPHIS CORP PURCHASE OF GOTTLIEB'S COST 26 MILLION IN CASH STOCK MEDAPHIS CORP SAID IT ACQUIRED A CLOSELY HELD FINANCIAL SERVICES COMPANY FOR MORE THAN 26 MILLION IN CASH AND STOCK BASED IN ATLANTA MEDAPHIS PROVIDES BUSINESSMANAGEMENT SERVICES TO HOSPITALS AND PHYSICIANS THE COMPANY GOTTLIEB'S FINANCIAL SERVICES INC PROVIDES BUSINESSMANAGEMENT SERVICES PRIMARILY BILLING AND ACCOUNTS RECEIVABLE MANAGEMENT SERVICES TO EMERGENCYROOM PHYSICIANS THE COMPANY HAD REVENUE OF APPROXIMATELY 13 MILLION IN 1992 MEDAPHIS SAID IT WILL PAY 26 MILLION IN CASH FOR GOTTLIEB PLUS AS MUCH AS 25 MILLION IN MEDAPHIS STOCK BASED ON GOTTLIEB'S FINANCIAL PERFORMANCE IN 1994 9309020083 930902 BUSINESS BRIEF GENERAL MOTORS CORP JOHNSON MATTHEY US UNIT IS SUED OVER PARTS CHARGES GENERAL MOTORS CORP SAID IT FILED A SUIT AGAINST JOHNSON MATTHEY PLC CHARGING THAT ITS WISCONSIN SUBSIDIARY CHARGED THE AUTO MAKER FOR PARTS IT DIDN'T RECEIVE THE SUIT FILED IN THE US DISTRICT COURT IN MILWAUKEE LAST WEEK ASKS FOR AN UNSPECIFIED AMOUNT IN COMPENSATION AND DAMAGES JOHNSON MATTHEY A BRITISH MAKER OF PRECIOUS AND RARE METALS COATS THE SUBSTRATE USED IN CATALYTIC CONVERTORS THE COATING CONTAINS PRECIOUS METALS THAT ACT AS THE CATALYST TO THE CONVERTOR A SPOKESMAN FOR THE DETROITBASED AUTO MAKER SAID THERE IS AN IRREGULARITY IN ACCOUNTING FOR THE PRECIOUS METALS A JOHNSON MATTHEY SPOKESMAN SAID THE DOCUMENTS ARE CURRENTLY WITH OUR LAWYERS AND THERE'S NOT MUCH ELSE TO SAY 9309020082 930902 MARKETSCAN MOOD IS INDIGO FOR MANY FOOD MARKETERS BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL FOOD AND CANDY MAKERS HAVE GOT THE BLUES FROM PASTA JUICE AND JELLO TO TOOTSIE ROLLS POTATO CHIPS AND LOLLIPOPS PRODUCTS ARE COMING OUT IN SHADES OF INDIGO TO AQUA IN CANDY AISLES ALONE AT LEAST 21 NEW BLUE PRODUCTS HAVE BEEN INTRODUCED THIS YEAR MOST OF THEM GUARANTEED TO TURN THE TONGUE AND FINGERS A BRILLIANT AND OFTEN DOWNRIGHT HEINOUS HUE BLUE TORTILLA CHIPS MADE FROM BLUE CORN FIRST BECAME POPULAR IN THE MID1980S BUT IT TOOK A WHILE FOR OTHER FOODS TO FOLLOW SUIT PERHAPS MORE RECOGNIZABLE THESE DAYS ARE THE APPROXIMATELY 25 BLUE FRUIT DRINKS WITH SNAPPY NAMES THAT HAVE EMERGED SINCE 1989 SUCH AS PROCTER & GAMBLE CO'S FRUIT JUICY BLUE HAWAIIAN PUNCH ITS SECONDBEST HAWAIIAN PUNCH SELLER OR THE GREAT BLUEDINI KOOLAID ONE OF FIVE TOP SELLERS FOR THE DRINK WITH 18 FLAVORS MADE BY KRAFT GENERAL FOODS INC A UNIT OF PHILIP MORRIS COS BLUE JELLO LAUNCHED BY KRAFT LAST YEAR SOLD 21 MILLION PACKAGES DURING ITS FIRST YEAR AND IS NOW THE THIRD BIGGEST SELLING COLOR BEHIND RED AND ORANGE ACCORDING TO KRAFT WE GOT A LOT OF CONSUMER REQUESTS ON OUR 800 NUMBER FOR A BLUE JELLO SO WE CAME UP WITH THIS BLUEBERRYRASPBERRY FLAVOR SAYS KRAFT SPOKESWOMAN LISA VAN RIPER A LOT OF ADULTS MAY GO OH MY GOD' BUT THE KIDS ARE REALLY EXCITED ABOUT IT AS FOR THE BLUE POTATO CHIPS THEY ARE MADE FROM REAL BLUE POTATOES ONE BRAND TRUE BLUES IS BEING SOLD BY BARBARA'S BAKERY IN PETALUMA CALIF A DEEP PURPLISH COLOR TRUE BLUES COME IN TWO VARIETIES SALTED AND GARLICFLAVORED A LOT OF PEOPLE WHEN THEY FIRST LOOK AT THE PRODUCT THINK IT'S DYED BECAUSE THEY DON'T THINK POTATOES CAN BE BLUE SAYS ERIC BORGSTROM OF BARBARA'S BAKERY BUT NOW THEY'RE GETTING A LITTLE MORE USED TO DIFFERENT FOODS BEING BLUE WHY BLUE WHAT'S WRONG WITH TRADITIONAL REDS OR MAYBE A NICE LAVENDER OR CHARTREUSE MOST COLORS HAVE BEEN TAPPED WHEN IT COMES TO CANDY IT SEEMS BUT THERE HAVE NEVER BEEN TOO MANY BLUE FOODS ON THE MARKET SAYS MARTIN FRIEDMAN EDITOR OF CHICAGOBASED NEW PRODUCT NEWS NOT TOO MANY PRODUCTS COULD GET AWAY WITH BEING BLUE MR FRIEDMAN SAYS BUT IT HAS A REAL NOVELTY VALUE INDEED SUPERMARKET SALES OF KOOLAID KOOL BURST GREAT BLUEDINI JUICE DRINKS SOARED 1555 DURING THE 52 WEEKS ENDED JULY 18 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF HAWAIIAN PUNCH FRUIT JUICY BLUE DRINKS INCREASED 80 DURING THE SAME PERIOD WHILE SALES OF JELLO BERRY BLUE GELATIN MIX MORE THAN DOUBLED SALES OF GARDEN OF EATIN'S RED HOT BLUES BLUE CORN TORTILLA CHIPS INCREASED BY NEARLY 10 TURNING A PRODUCT BLUE MAY BE ONE WAY TO DIFFERENTIATE IT FROM THE COMPETITION BUT SOME PSYCHOLOGISTS SEE SOMETHING DEEPER THAN A MARKETING PLOY THE COUNTRY IS SOMBER BECAUSE OF THE ECONOMIC DOWNTURN IN RECENT YEARS MAKING CHILLY BLUE AN APPROPRIATE HUE FOR FOOD SAYS CAROLE LIEBERMAN A PSYCHOLOGY PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES WHO HAS STUDIED COLOR WHILE KIDS SIMPLY SAY BLUE IS COOL ADULTS FIND PRODUCTS SUCH AS BLUE TORTILLA CHIPS AND BLUE PASTAS ALSO MADE FROM BLUE CORN HEALTHIER AND MORE NATURAL BLUE CORN GROWN ORGANICALLY IS OFTEN PROMOTED AS A DESIRABLE PRODUCT DATING BACK HUNDREDS OF YEARS SAYS RICHARD LAWRENCE WITH MARKETING INTELLIGENCE SERVICE LTD A NEWPRODUCT SCANNING SERVICE THERE'S A CERTAIN SEGMENT OF THE POPULATION THAT SEEMS AMENABLE TO EATING AND TRYING THINGS THAT GO BACK TO THE WAY THEY USED TO BE HE SAYS WHAT'S NEW PASTA LOVERS ARE ACCUSTOMED TO WHITE NOODLES AND SAY ICK' AT FIRST TO BLUE NOODLES EXPLAINS JERRY HORST WITH OAK CREEK FARMS IN EDGAR NEB A BLUEPASTA PRODUCER BUT THERE IS VIRTUALLY NO DIFFERENCE IN THE TASTE HE SAYS FOR CANDY MAKERS JUST STAYING AHEAD OF THE COMPETITION IS CRUCIAL WHAT'S NEW IS WHAT'S IN INDUSTRY LEADERS SAY THIS RUSH OF NOVEL BLUE SWEETS INCLUDES CHARMS BLUE RAZZ BERRY BLOW POPS AND TOTALLY BLUE RAZZ HARD CANDIES BOTH FROM TOOTSIE ROLL INDUSTRIES INC WHICH WON'T DISCLOSE HOW WELL THEY ARE SELLING AS WELL AS SHERMAN'S SUPER NAUSEATING OBNOXIOUS TREATS SNOT A BLUISH GELLIKE SUBSTANCE DISPENSED FROM YES A BLUE PLASTIC NOSE ALMOST ONE MILLION SNOUTS HAVE SOLD SINCE THE PRODUCT'S APRIL DEBUT IN THE FLAVOR OF WHAT ELSE SCHNOZZBERRY BUT GIVEN THE FICKLENESS OF SWEETS CONSUMERS PRODUCT WATCHERS WONDER IF BLUE IS DESTINED TO FADE OR IF IT HAS PERMANENTLY STAINED THE INDUSTRY IT'S A TOSSUP AS TO WHAT SHADE COULD REPLACE BLUE SAYS NEW PRODUCT NEWS'S MR FRIEDMAN EXPLAINING THE COLOR CUPBOARD IS PRETTY BARE BLUEDINI DRINKS HAWAIIAN PUNCH FRUIT JUICY BLUE JELLO BERRY BLUE GELATIN MIX AND MEJICO BLUE CORN TORTILLA CHIPS WILL REPLACE CLEAR PRODUCTS AS THE NEXT CONSUMER FAD 9309020081 930902 SPROUSEREITZ TO LIQUIDATE PORTLAND ORE SPROUSEREITZ STORES INC SAID IT REACHED AGREEMENT WITH CERTAIN MAJOR CREDITORS FOR THE DISPOSITION OR SALE OF ALL ITS ASSETS THE LOSSPLAGUED RETAILER SAID IT WILL SEEK APPROVAL OF THE PLAN FROM CREDITORS AND STOCKHOLDERS SPROUSE SAID IT HOPES TO MAKE AN INITIAL DISTRIBUTION TO UNSECURED CREDITORS OF 50 OF THEIR CLAIMS ON DEC 31 THE ACCORD ALSO PROVIDES FOR A DISTRIBUTION TO SHAREHOLDERS OF NO MORE THAN 278 A SHARE OFFICERS COULDN'T BE REACHED YESTERDAY TO COMMENT ON THE PLAN 9309020080 930902 BUSINESS BRIEF PHARMOR INC COURTAPPOINTED EXAMINER FILES REPORT ON ALLEGATIONS A SEALED REPORT ON ALLEGED FRAUD AND OTHER IRREGULARITIES AT PHARMOR INC WAS FILED BY COURTAPPOINTED EXAMINER JAY ALIX IN US BANKRUPTCY COURT OF THE NORTHERN DISTRICT OF OHIO MR ALIX SAID THE REPORT WILL REMAIN SEALED FOR AT LEAST SEVERAL WEEKS TO ALLOW PARTIES WHO ENTERED INTO CONFIDENTIALITY AGREEMENTS WITH THE EXAMINER TO REVIEW THE DOCUMENT PHARMOR A CLOSELY HELD DISCOUNT DRUG STORE CHAIN BASED IN YOUNGSTOWN OHIO FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE LAST AUGUST AFTER FIRING ITS COFOUNDER AND PRESIDENT MICHAEL MONUS AND TWO OTHER EXECUTIVES FOR AN ALLEGED FRAUDANDEMBEZZLEMENT SCHEME MR ALIX FOUNDER AND PRINCIPAL OF JAY ALIX & ASSOCIATES SOUTHFIELD MICH WAS APPROVED LAST YEAR AS EXAMINER BY BANKRUPTCY JUDGE WILLIAM T BODOH 9309020079 930902 BUSINESS BRIEF CINTAS CORP FEDERAL TAX LAW WILL CUT EARNINGS FOR QUARTER YEAR CINTAS CORP SAID THE EFFECT OF THE NEWLY ENACTED FEDERAL TAX LAW WILL REDUCE ITS EARNINGS BY ABOUT THREE CENTS A SHARE FOR ITS FIRST QUARTER ENDED AUG 31 AND BY ABOUT FOUR CENTS TO FIVE CENTS FOR THE FISCAL YEAR ENDING MAY 31 1994 IN THE 1992 FIRST QUARTER NET INCOME WAS 96 MILLION OR 21 CENTS A SHARE ON SALES OF 1047 MILLION IN THE YEAR ENDED MAY 31 1993 NET WAS 449 MILLION OR 97 CENTS A SHARE ON SALES OF 4527 MILLION CINCINNATIBASED CINTAS WHICH RENTS AND SELLS CORPORATE WORKPLACE UNIFORMS ALSO SAID ITS EARNINGS FOR FISCAL 1994 WILL BE TAXED AT A MARGINAL RATE OF 35 UP FROM 34 BECAUSE OF THE NEW TAX LAW 9309020078 930902 INTERNATIONAL BRIEF CIBAGEIGY AG FIRM POSTS FLAT EARNINGS LOWER SALES FOR FIRST HALF CIBAGEIGY AG REPORTED LOWER FIRSTHALF SALES AND FLAT EARNINGS BUT THE SWISS PHARMACEUTICAL AND CHEMICAL COMPANY PREDICTED HIGHER NET INCOME FOR THE FULL YEAR IN AN INTERIM REPORT TO SHAREHOLDERS CIBA SAID FIRSTHALF SALES FELL 36 TO 1185 BILLION SWISS FRANCS 802 BILLION FROM 123 BILLION FRANCS A YEAR EARLIER NET WAS ESSENTIALLY STEADY AT 141 BILLION FRANCS WE KNEW THAT 1993 WOULD BE A DIFFICULT YEAR CIBAGEIGY SAID HOWEVER ACHIEVING SUSTAINED FIRSTHALF EARNINGS IN A CHALLENGING ENVIRONMENT STRENGTHENED CONFIDENCE THAT OUR STRATEGIES ARE ON THE RIGHT TRACK IT ADDED THAT FULLYEAR PROFIT AFTER TAXES AND EXTRAORDINARY ITEMS SHOULD SHOW A REASONABLE INCREASE OVER 1992 THE COMPANY SAID IT HAS WORKED TO IMPROVE PRODUCTIVITY WHILE CONTAINING COSTS THE COMPANY'S STRATEGIC MOVES HAVE INVOLVED A STAFF REDUCTION OF 700 AT CIBAGEIGY'S US PHARMACEUTICAL DIVISION A WORLDWIDE REORGANIZATION OF RESEARCH AND DEVELOPMENT TO REDUCE THE TIME IT TAKES TO BRING NEW PRODUCTS TO MARKET PROGRAMS TO ADAPT THE ORGANIZATION AND COST STRUCTURE OF ITS PLANTPROTECTION BUSINESS TO SHRINKING EUROPEAN MARKETS AND CONTINUED RESTRUCTURING OF THE COMPANY'S INDUSTRIAL DIVISIONS 9309020077 930902 INTERNATIONAL BRIEF CLUB MEDITERRANEE SA RESORT OPERATOR'S EARNINGS FELL 89 IN FISCAL 1ST HALF AN ASSORTMENT OF FACTORS RANGING FROM EUROPE'S RECESSION TO TURKEY'S POLITICAL STRIFE HAVE LED FRENCH RESORTS AND TOURISM GROUP CLUB MEDITERRANEE SA TO ACKNOWLEDGE IT MIGHT SEE A LOSS IN THE FISCAL SECOND HALF ENDING OCT 31 CLUB MED'S NET INCOME DECLINED 89 TO 215 MILLION FRANCS 367000 IN ITS FISCAL FIRST HALF ENDED APRIL 30 WITHOUT A FAVORABLE 49 MILLION FRANC IMPACT FROM A CHANGE IN THE WAY CLUB MED CALCULATES CERTAIN ASSET DEPRECIATION AND EARNINGS DENOMINATED IN FOREIGN CURRENCIES THE GROUP WOULD HAVE POSTED A LOSS FOR THE FIRST HALF ALTHOUGH THE MARKET REACTED TO THE NEWS BY PUSHING CLUB MED'S SHARE PRICE DOWN 31 FRANCS OR 71 TO 40510 FRANCS ANALYSTS WERE LESS SURPRISED I WAS ALREADY PESSIMISTIC TOWARD CLUB MED SAID FREDERIQUE HARRIAGUE AN ANALYST WITH BROKERAGE MASSONAUDFONTENAYKERVERN ANALYSTS SAID THAT OVER THE PAST TWO OR THREE YEARS WHILE WORLD ECONOMIC CONDITIONS WERE FALLING INTO RECESSION CLUB MED PURSUED AN AMBITIOUS EXPANSION PROGRAM AND MADE AN ILLFATED ENTRY INTO THE AIRCHARTER BUSINESS 9309020076 930902 LEISURE & ARTS FILM COMING OF AGE IN THE DEPRESSION BY JULIE SALAMON KING OF THE HILL IS A WISE BEAUTIFUL MOVIE ABOUT A POOR SMART BOY WHO COMES OF AGE DURING THE DEPRESSION IN ST LOUIS THAT WOULD BE ENOUGH WISE BEAUTIFUL MOVIES AREN'T SOMETHING TO BE TAKEN FOR GRANTED BUT KING OF THE HILL IS ESPECIALLY EXCITING BECAUSE IT CONFIRMS THE AUTHENTICITY OF A PROMISING TALENT STEVEN SODERBERGH WHO WROTE AND DIRECTED THIS ADAPTATION OF AE HOTCHNER'S MEMOIR BECAME AN INSTANT CELEBRITY FIVE YEARS AGO WHEN AT THE AGE OF 26 HE UNLEASHED HIS FIRST PICTURE THE VERY CLEVER SEX LIES AND VIDEOTAPE HAVING BEEN DUBBED A GENIUS HE THEN SET OUT TO LIVE UP TO HIS REPUTATION BY MAKING A PSYCHOLOGICAL THRILLER CALLED KAFKA THE MOVIE WAS AMBITIOUS AND PRETENTIOUS IN EQUAL PARTS AND FAILED AN INTELLIGENT MESS HIS WORK IN KING OF THE HILL COULDN'T BE MORE ASSURED IT'S MORE EVOCATIVE NOT ONLY OF TIME AND PLACE BUT PERSPECTIVE AS WELL HE NEVER DEVIATES FROM THE POINT OF VIEW OF AARON KURLANDER THE 12YEAROLD BOY WHO SITS WITH SUCH SELFASSURANCE AT THE CENTER OF THIS SPIRITED AFFECTIONATE RECOLLECTION OF A DOUBLY DIFFICULT TIME PUBERTY AND THE DEPRESSION MR SODERBERGH NEVER LETS US FORGET THROUGH THE WRITING AND THE INTENSELY SPECIFIC CAMERAWORK THAT WE ARE SEEING AARON'S WORLD AS AARON SEES IT SO HIS MOTHER IS BLANDLY ANGELIC HIS PROTECTOR AND FRIEND LESTER IS UNQUESTIONABLY HEROIC HIS KIND TEACHER CARRIES A FAINT GLOW ABOUT HER AARON WHO WILL GROW UP TO BE A WRITER ALREADY KNOWS HOW TO MAKE HIMSELF THE HERO OF HIS OWN STORY WITHOUT EITHER COCKINESS OR SELFEFFACEMENT HE IS A CLEAREYED BOY WITH GOOD INTUITION HE MAY NOT ALWAYS BE ABLE TO EXPLAIN WHAT HE SEES BUT HE KNOWS WHEN HE'S SEEING SOMETHING WORTH PAYING ATTENTION TO HE GRAVITATES BETWEEN TWO WORLDS AT SCHOOL HE IS AN HONOR STUDENT AND A FIRSTRATE MARBLE PLAYER HE KNOWS HE'S ADMIRED FOR BOTH THESE ACCOMPLISHMENTS AND SO MAKES A GREAT EFFORT MAINLY BY LYING TO HIDE THE FACTS OF HIS OTHER WORLD THAT IS HOME THE EMPIRE HOTEL WHERE HE LIVES WITH HIS SICKLY MOTHER HIS FEISTY LITTLE BROTHER AND HIS FATHER A MAN WHOSE SCHEMES TO RESCUE HIS FAMILY FROM POVERTY MAKE HIM SEEM MANY THINGS OPTIMISTIC RIDICULOUS RUTHLESS AND PRAGMATIC AT THE EMPIRE AARON ALSO HAS AN EXTENDED FAMILY AN ASSORTMENT OF PEOPLE WHO WOULDN'T BE LIVING THERE IF THEY COULD BE SOMEWHERE BETTER THE MOVIE HAS THE TENDER JAUNTY SPIRIT OF A REALLY GOOD SILENT FILM THOUGH THE TALK IS WELLWRITTEN WITHOUT TURNING UP THE VIOLINS MR SODERBERGH NEVER LETS US FORGET THAT THIS IS A DEPRESSIONERA STORY HOOVERVILLES AND CRUELTY AND HUNGER ARE PART OF AARON'S DAILY LIFE BUT IT'S ALSO AN ADVENTURE STORY THE ADVENTURE BEING THE ACT OF GROWING UP AND THE LITTLE ADVENTURES THAT ENTAILS LIKE DRIVING HIS FATHER'S CAR ON A WILD RIDE TO HELP KEEP IT FROM BEING TAKEN BY HIS FATHER'S CREDITORS THE ACTORS ARE VERY GOOD THE CHILDREN UNUSUALLY SO JESSE BRADFORD PLAYS AARON WITH STURDINESS AND CLARITY IT'S A DIFFICULT PART BECAUSE AARON IS NOT ONLY THE MAIN CHARACTER BUT THE FILTER FOR ALL THE OTHER CHARACTERS AND HE COULD BECOME A CIPHER HE NEVER DOES JEROEN KRABBE GIVES A COMPLICATED INTERESTING PERFORMANCE AS AARON'S FATHER A MAN WHOSE QUEST TO TAKE CARE OF HIS FAMILY LEADS TO ACTIONS THAT TODAY WOULD LAND HIM IN JAIL YET HE CAN BE ENDEARING WHEN AARON SERVES HIM A SOUP MADE OUT OF KETCHUP AND WATER HE PRAISES HIS SON'S COOKING AND MAKES THE COMPLIMENT SEEM SINCERE AARON SEES BOTH WHAT'S LOVABLE AND WHAT'S HATEFUL IN THIS MAN AND MR KRABBE LETS US SEE WHAT AARON SEES LOOK THROUGH A MOVIE GUIDE UNDER THE CATEGORY WESTERNS AND YOU'LL FIND A LOT OF MOVIES ABOUT A MAN OR THE MAN THE MAN FROM LARAMIE A MAN CALLED HORSE THE MAN WHO SHOT LIBERTY VALANCE ETC YOU WON'T FIND ANY MOVIES IN THIS CATEGORY ABOUT A WOMAN OR THE WOMAN THOUGH OF COURSE THERE IS ALWAYS BARBARA STANWYCK SITTING TALL IN THE SADDLE FOR HER SISTERS IN ANNIE OAKLEY CATTLE QUEEN OF MONTANA AND FORTY GUNS THE POINT IS WOMEN ARE GENERALLY NOT THE MAIN POINT IN WESTERNS A FACT THAT MAGGIE GREENWALD SET OUT TO CORRECT WITH THE BALLAD OF LITTLE JO THE STORY OF A WOMAN WHO SURVIVES IN THE OLD WEST BY PRETENDING TO BE A MAN THE PICTURE ISN'T A CROSSDRESSING COMEDY SOME LIKE IT HOT IN LAREDO MS GREENWALD WHO WROTE AND DIRECTED THE PICTURE HAS A SERIOUS INTENTION SHE WANTS TO INVESTIGATE THE HISTORICAL PHENOMENON OF 19THCENTURY WOMEN WHO LIVED AS MEN SO THEY COULD WORK AS MEN AS A HISTORICAL DOCUMENT LITTLE JO IS QUITE INTERESTING MS GREENWALD HAS A GOOD EYE AND HAS VIVIDLY RECREATED THE GRIMINESS OF FRONTIER LIFE AND THE MALE CRUDENESS THAT WOULD MAKE A WOMAN TRAVELING ALONE WANT TO GO UNDERCOVER LITTLE JO IS LESS SUCCESSFUL AS A DRAMA MAINLY BECAUSE MS GREENWALD'S HEROINE IS SO OBLIQUE THIS MAY SEEM LIKE A SEXIST COMPLAINT SINCE THE MEN IN WESTERNS AREN'T USUALLY MODELS OF PSYCHOLOGICAL COMPLEXITY EITHER HOWEVER THIS ISN'T A CLASSIC WESTERN DRAWN IN MYTHIC STEREOTYPES IT IS THE STORY OF A WOMAN WHO CHOOSES TO LIVE HER LIFE AS A MAN AT FIRST TO ESCAPE DISGRACE BACK EAST THEN BECAUSE SHE LIKES IT JO HERSELF REMAINS AN ENIGMA AND SUZY AMIS THE ACTRESS WHO PLAYS HER ISN'T ABLE TO IMPLY THE POSSIBILITIES THAT CAN MAKE AN ENIGMA FASCINATING VIDEO TIP FOR GIRLS WHO WANT TO GROW UP TO BE COWBOYS THE PICKINGS ARE PRETTY SLIM THERE'S CAT BALLOU THE 1965 WESTERN COMEDY WITH JANE FONDA AS THE SCHOOLTEACHER WHO SETS OUT TO AVENGE HER FATHER'S DEATH AND THERE ARE TELEVISION MOVIES SUCH AS CALAMITY JANE THE 1984 PICTURE STARRING JANE ALEXANDER 9309020075 930902 INTERNATIONAL BRIEF BORAL LTD BORAL BIDS FOR SAGASCO POSTS PROFIT RISE FOR FISCAL YEAR BORAL LTD AN AUSTRALIAN BUILDING MATERIALS AND ENERGIES COMPANY ANNOUNCED A TAKEOVER BID OF 7594 MILLION AUSTRALIAN DOLLARS US5113 MILLION FOR SAGASCO HOLDINGS LTD OF SOUTH AUSTRALIA WITH THE AIM OF CONTROLLING SAGASCO'S INTERESTS IN A NUMBER OF GAS FIELDS IN CENTRAL AUSTRALIA BORAL ALSO REPORTED THAT PROFIT ROSE 51 TO A2289 MILLION OR 242 AUSTRALIAN CENTS IN THE FISCAL YEAR ENDED JUNE 30 1993 PROFIT FOR THE YEAREARLIER PERIOD WAS A152 MILLION OR 166 AUSTRALIAN CENTS SALES FOR THE CURRENT YEAR ROSE 14 TO A422 BILLION FROM A370 BILLION A YEAR EARLIER JIM LESLIE BORAL CHAIRMAN SAID THE LARGE RISE IN PROFIT WAS ATTRIBUTABLE TO BETTER EARNINGS PERFORMANCES BY ITS CONSTRUCTION MATERIALS AND TIMBER DIVISIONS AND COSTCUTTING WITHIN THE COMPANY THE PROFIT OF A2289 MILLION INCLUDES A TAX BENEFIT OF A204 MILLION REFLECTING THE IMPACT OF A REDUCTION IN THE AUSTRALIAN CORPORATE TAX RATE FROM 39 TO 33 9309020073 930902 LEISURE & ARTS DVORAK REVIVED AT BARD EUPHONY FROM THE NEW WORLD BY BARRYMORE LAURENCE SCHERER ANNANDALEONHUDSON NY THE BARD MUSIC FESTIVAL IS NOT AS WIDELY KNOWN AS TANGLEWOOD BLOSSOM OR CARAMOOR YET HOWEVER IT HAS DEFINITELY BECOME A STIMULATING ATTRACTION FOR THOSE WHO MAKE THE 90MILE TREK UP THE HUDSON VALLEY FROM NEW YORK CITY PRODUCED AT BARD COLLEGE IN A VILLAGE THAT SEEMS TO HAVE APPEARED IN THE FOREST LIKE BRIGADOON AFTER NAPPING IN THE MISTS SINCE GROVER CLEVELAND'S DAY THE FESTIVAL HAS GONE FROM STRENGTH TO STRENGTH SINCE 1990 BARD FESTIVALS ARE STYLED REDISCOVERIES BY THEIR FOUNDER AND CODIRECTOR LEON BOTSTEIN AND THE APPELLATION TYPIFIES THE INTELLECTUAL WORKINGS BEHIND IT MR BOTSTEIN PRESIDENT OF BARD MUSIC DIRECTOR OF THE AMERICAN SYMPHONY ORCHESTRA EDITOR OF THE SCHOLARLY MUSICAL QUARTERLY AND LORD HIGH EVERYTHING ELSE CONSECRATES EACH FESTIVAL TO A SPECIFIC COMPOSER COMPREHENSIVELY EXAMINING HIS MUSIC IN THE CONTEXT OF THE HISTORICAL SOCIAL AND CULTURAL MILIEU IN WHICH HE FLOURISHED BRAHMS MENDELSSOHN AND RICHARD STRAUSS HAVE BEEN THE FOCUS OF PREVIOUS FESTIVALS OVER THE COURSE OF PAIRED AUGUST WEEKENDS ANTONIN DVORAK WAS THIS YEAR'S SUBJECT THE DVORAK REDISCOVERY MARKED THE CENTENARY OF THE COMPOSER'S RESIDENCE IN NEW YORK AS TITULAR DIRECTOR OF THE NATIONAL CONSERVATORY OF MUSIC AN EVEN GREATER JUSTIFICATION FOR THIS EVENT THE FESTIVAL ARGUES WITH GREAT COGENCY IS THAT DVORAK HAS BEEN UNFAIRLY AND CONDESCENDINGLY CATEGORIZED AS A MERE NATIONALIST WHOSE MUSIC IS TOO APPEALING TO BE TAKEN WITH ABSOLUTE SERIOUSNESS STRIP AWAY THE BEAUTY A COLLEAGUE ONCE SAID TO ME AND WHAT'S LEFT THAT'S GRATITUDE FOR YOU IT IS ADDITIONALLY IRONIC THAT NATIONALISM WHICH CONTRIBUTED SO MUCH INDIVIDUALITY AND SAVOR TO 19THCENTURY MUSIC IS CURRENTLY A RATHER NEGATIVE BUZZWORD DVORAK IS OF COURSE A PRIME EXAMPLE OF THE SUBLIMATION OF NATIONALISM BUT BARD IN ITS CHARACTERISTIC SEARCH THROUGH THE MUSICAL PENUMBRA SURROUNDING ITS CENTRAL FIGURE HAS TURNED UP GENUINE TREASURES OF UNIVERSAL APPEAL LANGUISHING IN OBSCURITY IF THE NEUROTIC BEAUTIES OF THE DMINOR STRING QUARTET OP 131 BY BEDRICH SMETANA DEAF DEPRESSED AND DEBILITATED BY SYPHILIS WHEN HE WROTE IT IN 1882 WERE VIRTUALLY OVERWHELMED BY THE DISTRACTING TAPDANCE PERFORMED BY THE BRENTANO STRING QUARTET'S FIRST VIOLINIST MARK STEINBERG WHOSE FEET SHOULD BE NAILED TO THE STAGE NO AMOUNT OF HOOFING COULD HIDE THE APPEAL AND INVENTIVENESS OF VITEZSLAV NOVAK'S STRING QUARTET NO 2 NOVAK 18701949 WAS A DVORAK PUPIL AT THE PRAGUE CONSERVATORY AND HIS TWOMOVEMENT QUARTET DESERVES TO ENTER THE STANDARD REPERTOIRE BOTH MOVEMENTS ARE BASED ON THE SAME THEME THE FIRST MOVEMENT ONE OF THE MOST LUSCIOUS FUGUES YOU'LL EVER HEAR PLACES NOVAK FIRMLY IN THE CONTRAPUNTAL RANKS OF HIS CONTEMPORARIES MAX REGER AND FERRUCIO BUSONI BUT THE CROWNING EVENTS OF THE SECOND WEEKEND WERE THE TWO CONCERTS FEATURING MR BOTSTEIN'S OWN RESIDENT AMERICAN SYMPHONY ORCHESTRA THE FIRST CALLED DVORAK AND AMERICA WAS QUITE A GRAB BAG BUT THE RESULT VIVIDLY ILLUSTRATED DVORAK'S ENTHUSIASM FOR UTILIZING A NATION'S FOLK CULTURE TO HELP DEFINE ITS MUSICAL VOICE IN HIS CHORAL ARRANGEMENT OF STEPHEN FOSTER'S OLD FOLKS AT HOME DVORAK SCRUPULOUSLY OBSERVED THE LIMITATIONS OF OUR AMERICAN BELLINI WITH A STRAIGHTFORWARD ORCHESTRATION OF FOSTER'S CLUNKY PIANO ACCOMPANIMENT GW CHADWICK'S THIRD SYMPHONY 1894 REVEALED AN AMERICAN PEN WELL GROUNDED IN GERMAN TECHNIQUE SCHUMANN VIVACIOUSLY FILTERED THROUGH COMPOSERS LIKE JOACHIM RAFF AND JOHN KNOWLES PAINE RUBIN GOLDMARK'S REQUIEM 1919INSPIRED BY LINCOLN'S GETTYSBURG ADDRESS WAS PROBLEMATIC THE COMPOSER A NEPHEW OF KARL GOLDMARK KNOWN FOR HIS RUSTIC WEDDING SYMPHONY STUDIED WITH DVORAK AT THE NATIONAL CONSERVATORY AND LATER HEADED THE COMPOSITION DEPARTMENT AT JUILLIARD IN NEW YORK HE ALSO TAUGHT GEORGE GERSHWIN HIS TONE POEM OPENS WITH A RHETORICAL TRUMPET SOLO AND A CHORDAL STRING RESPONSE LIKE A HEAVILY SWEETENED VERSION OF IVES'S UNANSWERED QUESTION MOREOVER THE WIDE INTERVALS OF THE ENSUING STRING EPISODE ANTICIPATE THE LONESOME MOOD THAT BECAME THE EARLY SIGNATURE OF ANOTHER PUPIL AARON COPLAND UNFORTUNATELY GOLDMARK'S LENGTHY SUCCESSION OF STORMY AND PEACEFUL EPISODES SUGGESTED THAT HE DIDN'T KNOW WHEN TO END THE PIECE AFTERWARD DVORAK'S OWN TONE POEMS THE NOON WITCH AND THE GOLDEN SPINNING WHEEL HIGHLIGHTED THE DIFFERENCE BETWEEN THE MASTER OF TAUT AND VIGOROUS MUSICAL NARRATIVE AND THE MERE SPINNER OF NOODLES THE WEEKEND CONCLUDED WITH DVORAK'S REQUIEM ANOTHER MONUMENTAL WORK THAT DESERVES GREATER RECOGNITION IT BELONGS ON THE SHORT LIST OF GREAT REQUIEMS BY MOZART BERLIOZ VERDI AND BRAHMS BUT ITS REPUTATION MAY HAVE SUFFERED BECAUSE IT ALONE AMONG THESE MASTERPIECES OF MOURNING WAS NOT INSPIRED BY A PERSONAL OR PUBLIC LOSS BUT SIMPLY BY THE DESIRE TO SET THE MASS FOR THE DEAD THERE WAS THEN NO ROMANTICALLY COMPELLING ANECDOTE TO ATTRACT THE SYMPATHY OF LISTENERS JUST THE MUSIC ITSELF BUT THAT MUSIC IS SO PROFOUNDLY AFFECTING THAT MR BOTSTEIN'S PROGRAM NOTE SUGGESTED PUBLIC PERFORMANCE WOULD HELP REFUTE THE OPINION THAT DVORAK WAS A SUPERFICIAL COMPOSER MR BOTSTEIN WAS NOT TAKING AIM AT SOME STRAW MAN HERE BUT AT THE GREATEST NEWSPAPER MUSIC CRITIC IN THE ENGLISH LANGUAGE FOR IN 1892 GEORGE BERNARD SHAW WROTE ONE OF THE FUNNIEST AND MOST WRONGHEADED CRITIQUES OF THE REQUIEM WHEN I HEAR DVORAK'S WEIRD CHORDS ON MUTED CORNETS PATENT MARGATE PIER ECHO ATTACHMENT FINISHING UP WITH A GRUESOME DING ON THE TAMTAM I FEEL EXACTLY AS I SHOULD IF HE HELD UP A SKULL WITH A LIGHTED CANDLE INSIDE TO AWE ME THE BARD AUDIENCE JUSTIFIABLY FELT OTHERWISE DVORAK'S IS A REQUIEM TO RECKON WITH A SINCERE POWERFUL ULTIMATELY MOVING INTERPRETATION OF A GREAT LATIN TEXT IT IS TRUE THAT THE WILLIAM APPLING SINGERS COULD HAVE USED USED SOME REINFORCEMENTS BUT THE ASO UNDER MR BOTSTEIN WAS OBVIOUSLY INSPIRED BY DVORAK'S GLORIOUS INSTRUMENTATION MOREOVER THE FOUR SOLO VOICES VERONIKA KINCSES MARIETTA SIMPSON JOHN ALER AND JAN OPALACH WERE FIRST RATE MS KINCSES IN FACT WAS A SPECIAL FIND A STAR OF THE BUDAPEST OPERA SHE'S A HANDSOME SINGER AND I AM ASTONISHED THAT HER DRAMATICALLY SOARING LYRICISM ISN'T HEARD MORE FREQUENTLY ON OUR STAGES BARD'S DVORAK REDISCOVERY ISN'T OVER JUST YET ON NOV 6 AND 7 IT RESUMES AT LINCOLN CENTER WHILE SOME ELEMENTS OF THE SUMMER FESTIVAL WILL BE REPEATED THERE WILL BE A NUMBER OF IMPORTANT REPERTOIRE CHANGES NOTABLY AT THE CONCERT DVORAK AND THE AMERICAN CONNECTION WHICH WILL INCLUDE THE THIRDACT OVERTURE TO VICTOR HERBERT'S OPERA NATOMA THE DELIGHTFUL CANTATA HIAWATHA'S WEDDING FEAST BY THE AFROENGLISH COMPOSER SAMUEL COLERIDGETAYLOR AND DVORAK'S TE DEUM MIGHT WE HOPE THAT THE LINCOLN CENTER BOARD OF DIRECTORS WOULD TAKE THAT WEEKEND AS THE OCCASION TO BRING DOWN THE BRONZE STATUE OF DVORAK BY THE CROATIANAMERICAN SCULPTOR IVAN MESTROVIC FROM ITS ROOFTOP HIDING PLACE ATOP FISHER HALL WHERE IT HAS BEEN ACTING AS A REPOSITORY OF BIRD HISTORY SINCE 1963 MR SCHERER WRITES THE LETTER FROM NEW YORK FOR GRAMOPHONE MAGAZINE 9309020072 930902 REVIEW & OUTLOOK EDITORIAL ASIDES FOR ONCE A PASS NOT FOR NOTHING IS THE WEATHER A UNIVERSAL SUBJECT OF CONVERSATION IN THE US THE MIDWEST'S GREAT FLOOD HURRICANE ANDREW LAST YEAR THE DROUGHT IN THE WEST THE METEOROLOGICAL SPIRITS HAVEN'T BEEN KIND RECENTLY SO IT IS PERHAPS WORTH TAKING NOTE OF A GOOD END JUST THIS ONCE AS HURRICANE EMILY DECIDED TUESDAY THAT SHE HAD BETTER THINGS TO DO THAN WRECK THE EAST COAST WE ARE GRATEFUL 9309020071 930902 IN ERA OF SPACE DETENTE BEWARE OF BAD BARGAINS BY JAMES OBERG VICE PRESIDENT GORE'S MEETINGS YESTERDAY AND TODAY WITH RUSSIAN PRIME MINISTER VICTOR CHERNOMYRDIN TO DISCUSS SPACERELATED ISSUES ARE EXPECTED TO YIELD GREATER COOPERATION BETWEEN THE TWO COUNTRIES PARTICULARLY IN AREAS SUCH AS SPACE LAUNCH VEHICLES AND LAUNCH FACILITIES GIVEN US BUDGET CONSTRAINTS AND THE WIDE VARIETY OF HIGHQUALITY RUSSIAN SPACE HARDWARE AND SERVICES NOW BEING OFFERED ON THE WORLD MARKET SUCH PROPOSALS ARE WELL WORTH CONSIDERING BUT EXTREME CAUTION IS CALLED FOR AS THE RUSSIANS MAY BE TRYING TO SELL THE US GOODS THEY DON'T RELIABLY POSSESS COMMON SUGGESTIONS FOCUS ON PLACING THE NASA SPACE STATION IN AN ORBIT FAR ENOUGH NORTH TO BE SERVICED BY THE OLD SOVIET SPACEPORT AT BAIKONUR IN KAZAKHSTAN RUSSIAN SUPERROCKETS IN THE ENERGIYA PROGRAM THE WORLD'S MOST POWERFUL ARE ALSO UNDER CONSIDERATION FOR TRANSPORTING INTO SPACE MANY SECTIONS OF THE STATION'S MODULAR DESIGN RUSSIAN SPACE OFFICIALS HAVE BEEN ENTHUSIASTICALLY PROMOTING THESE IDEAS THEY SEE A SOURCE OF FINANCIAL SALVATION FOR THEIR OWN AGENCIES AND INDUSTRIES SO DESPERATE ARE THE RUSSIANS FOR THE AMERICAN OPTION THAT THEY RECENTLY SURRENDERED TO US STATE DEPARTMENT PRESSURE OVER ALLEGED MILITARY ROCKET TECHNOLOGY PROLIFERATION THAT CASE INVOLVED THE RUSSIANS' SHARING WITH INDIA THEIR SMALLTHRUST LIQUIDHYDROGEN ENGINE KNOWHOW AN EXPERTISE UNIQUELY SUITED TO COMMUNICATIONS AND SCIENTIFIC LAUNCH VEHICLES AND TO A ROCKET TECHNOLOGY THAT HAS NEVER BEEN USED BY ANY NATION FOR MILITARY PURPOSES NEVERTHELESS THE RUSSIANS AGREED TO BREAK THEIR EXISTING CONTRACT WITH INDIA AND TO WITHHOLD THE MANUFACTURING TECHNOLOGY REPORTEDLY AS PART OF A DEAL TO RECEIVE EQUALLY VALUED US SPACE CONTRACTS AMERICAN SPACE INDUSTRIES HAVE BEEN UNDERSTANDABLY RELUCTANT PARTNERS IN THIS NEW USRUSSIAN SPACE DETENTE THEY CLEARLY WOULD PREFER THAT THE SPACE FUNDING BE GIVEN TO THEM FOR THE DESIRED SERVICES BUT WHEN THE RUSSIAN OPTION PROVIDES SERVICES AT A FRACTION OF THE AMERICAN COST AND YEARS AHEAD OF AMERICAN SCHEDULES CONGRESSIONAL BUDGETCUTTERS FIND THE OPTION ATTRACTIVE AS AN ALTERNATIVE TO TOTAL CANCELLATION OF MAJOR SPACE PROJECTS US AEROSPACE GIANTS HAVE FOUND THEY CAN LIVE WITH THE DEAL BUT ALL IS NOT WELL WITH THE FUNDAMENTAL UNDERPINNINGS OF THE PLAN BOTH THE RUSSIAN SPACE CENTER AT BAIKONUR AND THE RUSSIAN SUPERROCKET ENERGIYA ARE VERY BAD BARGAINS BY THE TIME THE US MAY HAVE TO RELY ON THEIR PROMISED SERVICES THEY MAY NO LONGER EXIST THE ENERGIYA ROCKET EQUIVALENT IN POWER TO THE SATURN V MOON ROCKET DEVELOPED DURING THE MOON RACE IN THE 1960S HAS FLOWN ONLY TWICE ONCE IN 1987 IT CARRIED A THROWNTOGETHER 100TON PAYLOAD THAT TUMBLED OUT OF CONTROL AND NEVER MADE IT INTO ORBIT THEN IN 1988 IT CARRIED A STRIPPEDDOWN UNMANNED SPACE SHUTTLE ON A TWOORBIT MISSION SINCE THEN ALL FLIGHT HARDWARE HAS BEEN ROTTING AND RUSTING AWAY IN STORAGE HALLS AT BAIKONUR THE SOVIET SHUTTLE AN IMMENSE STRATEGIC BLUNDER SLOWLY STRANGLED FROM LACK OF FUNDING IT WAS FINALLY TERMINATED OFFICIALLY A FEW MONTHS AGO NO FURTHER FLIGHTS OF THE ENERGIYA BOOSTER ARE EVEN PLANNED UNLESS LOTS OF AMERICAN MONEY SHOWS UP AND EVEN THEN THE LAUNCHES COULDN'T OCCUR BEFORE 1997 OR 1998 ESSENTIALLY THE ENTIRE RUSSIAN ROCKET PROGRAM WOULD HAVE TO BE REBUILT FROM SCRATCH KEY INDUSTRIAL PARTNERS IN THE PROJECT ARE NOW OUTSIDE THE RUSSIAN FEDERATION AND MANY OF THOSE FACTORIES HAVE ALREADY BEEN CONVERTED TO OTHER MANUFACTURING BETWEEN A THIRD AND A HALF OF THE MOST EXPERIENCED PERSONNEL HAVE ALREADY LEFT THE PROGRAM FOR BETTERPAYING JOBS WITH MORE SECURE FUTURES EXISTING HARDWARE HAS BEEN CANNIBALIZED FOR OTHER PROJECTS OR SOLD OFF AS SCRAP WHAT IS MORE THE BAIKONUR COSMODROME AS RUSSIA'S MAIN SPACE CENTER IS CALLED IS A WALKING CORPSE ALREADY EVACUATED BY ITS MOST ENERGETIC VETERANS AND NOW LONG ABANDONED BY THE SOVIET SUPPORT BUREAUCRACIES THAT USED TO MAKE IT A SEMITOLERABLE DUTY LOCATION LAUNCHINGS CONTINUE UNDER SKELETON STAFFS BUT INCREASINGLY SERIOUS BREAKDOWNS AND WORKER FOOD RIOTS ARE THREATENING TO BRING THE DELICATE HIGHTECH ROCKET WORK TO A HALT TWO RECENT SPACE FAILURES ILLUSTRATE HOW CLOSE MODERN ROCKET TECHNOLOGY RUNS TO THE EDGE OF DISASTER THE ZENIT ROCKET WHICH SERVES BOTH AS AN INDEPENDENT LAUNCH VEHICLE AND AS A BOOSTER FOR THE ENERGIYA HEAVY LIFTER IS MANUFACTURED AT A PLANT IN UKRAINE BETWEEN 1985 AND 1991 IT HAD A STRING OF SUCCESSES BUT SUDDENLY TWO YEARS AGO THE VEHICLE UNDERWENT A SERIES OF RANDOM FLIGHT FAILURES CAUSED BY INADEQUATE PREPARATION AND QUALITY CONTROL FROM THE UKRAINIAN FACTORY AN EXPLOSION DESTROYED ONE OF THE TWO LAUNCH PADS WHICH HAS NOT BEEN REBUILT THEN AN INDEPENDENT BOOSTER PROGRAM THE PROTON WAS DONE IN BY A SQUABBLE OVER WHICH MOSCOW AGENCY OWNED IT A TECHNICAL BUREAU THAT HAD BEEN LOCKED OUT OF A PROFITSHARING PLAN DECIDED TO WITHDRAW ITS INSPECTORS FROM THE LAUNCH SITE AND THE VERY NEXT VEHICLE FELL INTO THE PACIFIC OCEAN OUT OF FOUR PADS AT BAIKONUR FOR THE PROTON ROCKET ONLY ONE IS OPERATIONAL AS IF ALL THIS WEREN'T ENOUGH THERE ARE OTHER PROBLEMS WITH THE BAIKONUR SITE ECOLOGICALLY THE REGION IS BEYOND SALVATION AS THE ARAL SEA TO ITS WEST CONTINUES TO DRY UP EMANATIONS FROM THE EXPOSED SALT FLATS LACED WITH DECADES OF PESTICIDE POLLUTION IN THE COTTON FIELDS UPSTREAM ARE BLOWN BY THE CHOKING SUMMER WINDS EASTWARD ACROSS THE DESERT TO BLANKET THE CITY OF LENINSK WHERE THE SPACE WORKERS LIVE INFANT MORTALITY AND BIRTH DEFECTS IN THE AREA ARE UNENDURABLY HIGH THE GOVERNMENT OF KAZAKHSTAN HAS CLAIMED SOVEREIGNTY OVER THE BASE BUT CANNOT AFFORD TO PROVIDE BASIC SERVICES SUCH AS POWER AND WATER MUCH LESS TECHNICAL SERVICES ALSO LOOMING AS A FUTURE CRISIS IS THE QUESTION OF POLITICAL RIGHTS FOR LARGE RUSSIAN MINORITIES WITHIN THE BORDERS OF KAZAKHSTAN PARTICULARLY IN THE NORTHERN REGIONS WHERE THEY ACTUALLY FORM THE MAJORITY AND WHERE SENTIMENT IS GROWING FOR PARTITION AND ULTIMATE REUNION WITH RUSSIA NONE OF THESE FLASH POINTS BODE WELL FOR THE STABILITY OF THE BAIKONUR SPACEPORT CONCEIVABLY THE RUSSIAN GOVERNMENT MIGHT ACTUALLY GET MANY OF THE HOPEDFOR US SPACE DOLLARS FOR EXPANDED JOINT WORK SINCE THERE IS MUCH IN THE RUSSIAN SPACE PROGRAM WELL WORTH BUYING LEASING OR LICENSING ITS SPACE STATION HARDWARE AND EXPERIENCE CAN BE EXTREMELY VALUABLE BUT THE PRICE OF REBUILDING THE ALREADY COLLAPSED INFRASTRUCTURE OF BAIKONUR AND THE ENERGIYA ROCKET IS TOO HIGH FRUITFUL USRUSSIAN SPACE COOPERATION MUST DEPEND ON COLD HARD REALITIES NOT ON ECHOES OF PAST FADING GLORIES MR OBERG IS AN AEROSPACE ENGINEER RESIDING IN HOUSTON 9309020070 930902 INTERNATIONAL BRIEF KOREAN AIRLINES CARRIER TO SELL 14 PLANES DELAY PURCHASE OF OTHERS SOUTH KOREA'S KOREAN AIRLINES PLANS TO SELL 14 OF ITS 93 AIRPLANES BY THE END OF 1995 AS PART OF A RETRENCHMENT THE NATIONAL FLAG CARRIER ALSO DECIDED TO DELAY THE PURCHASE OF 11 PLANES VALUED AT 11 BILLION OUT OF 30 AIRPLANES PLANNED FOR PURCHASE AFTER 1995 A KOREAN AIR SPOKESMAN SAID THAT THE SALE AND DELAYED PURCHASE OF THE AIRPLANES SHOULD HELP THE COMPANY'S FINANCIAL HEALTH WHICH HAS BEEN DETERIORATING IN OVERHEATED COMPETITION WITH THE NEWLY ESTABLISHED ASIANA AIRLINES SINCE 1990 THE OFFICIAL ADDED THAT THE COMPANY IS EXPECTED TO HAVE A LOSS OF 41 BILLION WON 507 MILLION THIS YEAR 9309020069 930902 FINANCING BUSINESS UTILICORP UNITED INC UTILICORP UNITED INC KANSAS CITY MO SAID ITS AQUILA GAS PIPELINE CORP UNIT INTENDS TO GO PUBLIC THROUGH AN INITIAL OFFERING OF 54 MILLION SHARE EXPECTED TO YIELD UP TO 75 MILLION IN PROCEEDS THE SHARES TO BE OFFERED AT AN EXPECTED MAXIMUM PRICE OF 15 WOULD REPRESENT AN 184 STAKE IN THE SAN ANTONIO TEXAS GAS GATHERING AND PROCESSING BUSINESS DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND GOLDMAN SACHS & CO ARE LEAD UNDERWRITERS OF THE OFFERING ACCORDING TO A REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AQUILA GAS HAD 1992 NET INCOME OF 183 MILLION ON REVENUE OF 2113 MILLION 9309020068 930902 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 1/2 HIGH 3 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 44 DAYS 311 45 TO 89 DAYS 312 90 TO 149 DAYS 322 150 TO 179 DAYS 324 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 316 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 264 TWO MONTHS 268 THREE MONTHS 282 SIX MONTHS 297 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 310 ONE MONTH 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 307 60 DAYS 307 90 DAYS 317 120 DAYS 317 150 DAYS 317 180 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 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 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 666 60 DAYS 673 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 662 60 DAYS 672 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309020067 930902 LEISURE & ARTS BOOKSHELF WHY ROSS IS WRONG BY JAGDISH BHAGWATI THIS BOOK IS VINTAGE ROSS PEROT CATCHY PHRASES DAMNING QUOTES SIMPLE CHARTS AND SIMPLISTIC ARGUMENTS ARE DEPLOYED BRILLIANTLY IN A SHORT PITHY FRONTAL ATTACK ON THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT WRITTEN WITH PAT CHOATE AN EXPONENT OF THE JAPANESE THREAT TO US THE BOOK IS FILLED WITH THE PASSION THAT SUCH FEARS PROMPT ADD AN UNABASHED DISPLAY OF PANICFUELED PATRIOTISM AND YOU WILL SEE WHY SAVE YOUR JOB SAVE OUR COUNTRY WHY NAFTA MUST BE STOPPED NOW HYPERION 142 PAGES 695 PROMISES TO MAKE MONEY FOR THE AUTHORS AND TROUBLE FOR BILL CLINTON MESSRS PEROT AND CHOATE DO NOT SIMPLY ARGUE THAT THOSE WHO SUPPORT NAFTA ARE TAKEN IN BY NOTIONS OF GAINS THAT ARE ILLUSORY NO THEY DENOUNCE NAFTA AS A DRASTIC AND UNFAIR SCHEME THAT WILL PIT AMERICAN AND MEXICAN WORKERS IN A RACE TO THE BOTTOM GIVE AWAY AMERICAN JOBS AND RADICALLY REDUCE THE SOVEREIGNTY OF THE UNITED STATES IT WILL BESIDES HAVE BEEN PERPETRATED ON US BY THE MOST EXPENSIVE LOBBYING CAMPAIGN BY A FOREIGN GOVERNMENT IN US HISTORY TO BE FAIR THE AUTHORS HAVE GOOD REASON OTHER THAN THE COMPULSIONS OF THE POLITICAL MARKETPLACE TO HYPE UP THEIR CASE THE PROPONENTS OF NAFTA HAVE NOT EXACTLY BEEN SOBER IN MAKING THEIR CASE EITHER TO GET A WORD IN IT WAS PROBABLY NECESSARY TO YELL EVEN TO RANT BUT SURELY THEY ERR IN THEIR CRITIQUE OF MEXICAN LOBBYING IN TRUTH MEXICO'S PRESIDENT CARLOS SALINAS DE GOTARI HAS PLAYED HIS CARDS WELL AND PAID HIS WASHINGTON LOBBYISTS HANDSOMELY BUT FRANKLY WHY MAKE SUCH A FUSS ABOUT IT WE ARE A NATION WITH A STRONG TRADITION OF DEBATE AND DISSENT HAS THE MEXICAN LOBBYING BEEN ABLE TO SILENCE NAFTA'S OPPONENTS HARDLY THIS BOOK ITSELF PROVES OTHERWISE AMERICA IS RESILIENT ENOUGH TO TAKE THE FOREIGN LOBBYING IN STRIDE IN FACT OUR WILLINGNESS TO PERMIT SUCH LOBBYING REFLECTS THE STRENGTH OF OUR PLURALISM RATHER THAN THE WEAKNESS OF OUR INSTITUTIONS WORRIES OVER NAFTA'S EFFECT ON JOBS AND WAGES ARE ANOTHER MATTER ALTOGETHER THE FEAR THAT FREER TRADE WITH POOR COUNTRIES WITH ABUNDANT LABOR WILL ELIMINATE JOBS IN THE RICH COUNTRIES AND PULL DOWN REAL WAGES IS A GENUINE ONE WHAT TRADE WILL START INVESTMENT WILL REINFORCE CAPITAL WILL FLOW FROM THE RICH TO THE POOR NATIONS TO TAKE ADVANTAGE OF CHEAP LABOR NEW FACTORIES WILL BE BUILT THERE RATHER THAN HERE OLD ONES RELOCATED FROM SAN JOSE TO TIJUANA UNFORTUNATELY THE RESPONSE OF NAFTASUPPORTERS TO THESE FEARS HAS BEEN DISMISSIVE INSTEAD OF DECISIVE AGAIN SPECIOUS ARGUMENTS HAVE BEEN DEPLOYED AS WHEN THE FEAR OF OUTFLOW OF INVESTMENT TO MEXICO HAS BEEN DISMISSED AS A FANTASY BECAUSE SUCH INVESTMENT OUTFLOWS HAVE ALREADY OCCURRED WITHOUT NAFTA IGNORING THE FACT THAT NAFTA PROVISIONS MAKE INVESTING IN MEXICO MORE ATTRACTIVE AND LESS RISKY AND THAT MR SALINAS HIMSELF HAS OFTEN CITED THIS ABILITY TO ATTRACT MORE INVESTMENT AS A PRINCIPAL BENEFIT OF NAFTA FOR MEXICO IT WOULD BE BETTER TO ARGUE THAT JUST AS EUROPEAN COMMUNITYINDUCED JAPANESE INVESTMENT HAS GONE TO BRITAIN MORE THAN TO POORER SPAIN NAFTAINDUCED FOREIGN INVESTMENT COULD FAVOR US RATHER THAN MEXICO PUTTING US AHEAD AN EFFECTIVE ANSWER TO THE ALLEGED THREAT TO THE WAGES OF THE UNSKILLED MUST CITE STUDIES SHOWING HOW TRADE AND NET OUTFLOWS OF INVESTMENT DURING THE 80S HAD ALMOST NOTHING TO WITH THE STAGNATION AND FALL OF REAL WAGES DURING THE SAME TIME THE EMERGING CONSENSUS IS THAT THE TRUE CULPRITS WERE TECHNOLOGY AND TECHNICAL CHANGE BOTH OF WHICH IN THE INFORMATION AGE MILITATE AGAINST UNSKILLED LABOR IN FACT DURING THE '80S WE EXPERIENCED A NET INFLOW OF FOREIGN EQUITY AND OTHER CAPITAL WHEREAS IN TRADE WE BECAME MORE PROTECTIONIST INSTEAD WHILE THE POOR COUNTRIES LIBERALIZED THEIR TRADE THE REAL PROBLEM WITH THE CURRENT ADMINISTRATION I SUSPECT IS THAT FEW IN IT BELIEVE IN THEIR GUT THAT FREE TRADE CAN LIFT ALL ECONOMIC BOATS ESPECIALLY WHEN IT COMES TO TRADING WITH THE POORER COUNTRIES THEY SEEM TO SHARE RATHER THAN REJECT THE FEARS OF PEROT AND CHOATE WHEN DID THIS ADMINISTRATION SAY UNAMBIGUOUSLY THAT GAINS FROM TRADE WILL ACCRUE EVEN WHEN WE TRADE WITH COUNTRIES WITH DIFFERENT ALBEIT LOWER ENVIRONMENTAL AND LABOR STANDARDS INSTEAD THE ADMINISTRATION THROUGH ITS AMBIVALENT ACCOMMODATION ON THESE QUESTIONS HAS LEGITIMATED THE NOTION THAT FREE TRADE REQUIRES SUCH HARMONIZATION IT IS OF COURSE A SHORT STEP TO BELIEVING THAT LOWER WAGES ALSO IMPLY UNFAIR TRADE AND BRING WITH THEM PREDATION RATHER THAN GAIN MR SALINAS HAS ALREADY AGREED TO ACTION ON MINIMUM WAGES WHILE MR SALINAS WITH HIS POLITICAL FORTUNES TIED TO NAFTA'S PASSAGE AND BARGAINING WITH ASYMMETRIC POWER IN A ONEONONE CONTEXT WITH US HAS BEEN A PATSY FOR THESE ILLOGICAL DEMANDS AS PRECONDITIONS FOR FREER TRADE THE MANY NATIONS NEGOTIATING MULTILATERALLY AT THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WILL NOT BE SO ADMINISTRATION NEGOTIATORS SCHOOLED IN THE NAFTA EXPERIENCE COULD BE FORCED BY THE ENVIRONMENTAL AND LABOR LOBBIES TO MAKE SIMILAR DEMANDS AT THE GATT TALKS IN GENEVA THIS POSTURE COULD POISON THE TALKS AND PROPEL THE CONCLUSION OF THE GATT NEGOTIATIONS YET FURTHER BEYOND THE VERY FINAL DEC 15 DEADLINE THAT COULD BE NAFTA'S WORST LEGACY A FAUSTIAN BARGAIN IN WHICH A PREFERENTIAL FREETRADE AREA AMONG ONLY THREE COUNTRIES WOULD HAVE SUCCEEDED AT THE EXPENSE OF FREE TRADE FOR ALL MR BHAGWATI IS A VISITING SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE AND WAS THE ECONOMIC POLICY ADVISER TO THE DIRECTORGENERAL OF GATT 9309020066 930902 BUSINESS BRIEF CARGILL INC GRAIN AND COMMODITIES FIRM EARNINGS FELL 20 IN 1993 MINNEAPOLISBASED CARGILL INC SAID EARNINGS FOR FISCAL 1993 FELL 20 FROM A YEAR EARLIER TO 353 MILLION FROM 450 MILLION SALES FOR THE BIG CLOSELY HELD GRAIN AND COMMODITIES CONCERN WERE 47 BILLION SLIGHTLY ABOVE FISCAL 1992'S TOTAL CASH FLOW FOR THE FISCAL YEAR ENDED MAY 31 DROPPED SLIGHTLY TO 101 BILLION CARGILL SAID ROBERT L LUMPKINS CHIEF FINANCIAL OFFICER SAID THAT WHILE US OPERATIONS WERE AT RECORD LEVELS PERFORMANCE OUTSIDE NORTH AMERICA REFLECTED A VERY DIFFICULT BUSINESS ENVIRONMENT CREATED BY MAJOR POLITICAL EVENTS AND POLICY REFORMS AS WELL AS CONTINUING WEAKNESS IN MANY SECTORS OF THE GLOBAL ECONOMY HE CITED REDUCED ACREAGE IN THE EUROPEAN COMMUNITY CURRENCY FLUCTUATIONS AND POLITICAL INSTABILITY IN LATIN AMERICA AND FINANCIAL AND CREDIT PROBLEMS CONFRONTING SUCH MAJOR CUSTOMERS AS THE FORMER SOVIET UNION WE WEREN'T SURPRISED BY OUR INABILITY TO MATCH WHAT WAS CLEARLY AN EXCEPTIONAL YEAR IN 1992 MR LUMPKINS SAID 9309020065 930902 WHO'S NEWS BARBAKOW'S MISSION AT NATIONAL MEDICAL RESOLVE LITIGATION STRENGTHEN BUSINESS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF WITH THE FEDERAL GOVERNMENT LOOKING INTO POSSIBLE CRIMINAL CHARGES AGAINST HIS COMPANY AND THE NATION'S LARGEST INSURERS PRESSING 1 BILLION OF CIVIL FRAUD CLAIMS JEFFREY C BARBAKOW'S MANDATE AT NATIONAL MEDICAL ENTERPRISES INC IS CERTAINLY CLEAR CUT TRY TO RESOLVE THE LITIGATION AS QUICKLY AS POSSIBLE AND AT THE SAME TIME MAKE SURE WE'RE STRENGTHENING THE BUSINESS FROM THE TOP DOWN SAYS THE 49YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE RAIDS LAST WEEK ON MORE THAN 20 OF THE COMPANY'S FACILITIES ARE THE MOST DRAMATIC TURN YET IN THE GOVERNMENT'S CONTINUING INVESTIGATION OF POSSIBLE ILLEGAL OVERBILLING AND PATIENTREFERRAL PRACTICES AT NATIONAL MEDICAL IN ONE ROOM 19 OF 22 FILE CABINETS WERE GONE WE COULDN'T FIGURE OUT WHY THEY LEFT THE OTHER THREE UNTIL I OPENED THEM AND SAW THEY WERE EMPTY SAYS MR BARBAKOW AN OUTSIDE DIRECTOR WHO ASSUMED THE HELM THIS SUMMER AFTER HIS LONGTIME FRIEND AND COMPANY COFOUNDER RICHARD K EAMER RESIGNED UNDER PRESSURE FROM THE BOARD NATIONAL MEDICAL HAS SET ASIDE 65 MILLION TO PAY FOR LAWYERS' FEES AND ASSOCIATED COSTS WHAT WE WANT IS A GLOBAL SETTLEMENT WITH BOTH THE CIVIL AND ANY CRIMINAL CHARGES SAYS MR BARBAKOW THAT MAY BE EASIER SAID THAN DONE IN JULY NATIONAL MEDICAL BROKE OFF SETTLEMENT TALKS WITH THE INSURERS WHO ARE SEEKING TO RECOVER MONEY PAID TO THE COMPANY'S PSYCHIATRIC HOSPITAL DIVISION FOR ALLEGEDLY FRAUDULENT CLAIMS AND WITH THE CLINTON ADMINISTRATION RALLYING SUPPORT FOR ITS HEALTHCARE REFORM PLAN PARTLY BY PUSHING THE NOTION OF WIDESPREAD WASTE AND FRAUD IN THE HEALTH CARE INDUSTRY THE GOVERNMENT MAY WANT TO MAKE AN EXAMPLE OF NATIONAL MEDICAL IF ONE TRAIT STANDS IN MR BARBAKOW'S FAVOR NOW IT'S HIS ABILITY TO APPEAR CALM AND REASSURING IN A CRISIS HE DOESN'T GET RATTLED SAYS LAWYER TERRY CHRISTENSEN MANAGING PARTNER OF CHRISTENSEN WHITE MILLER FINK & JACOBS WHO WORKED CLOSELY WITH MR BARBAKOW DURING HIS DAYS AS AN ENTERTAINMENT INDUSTRY EXECUTIVE MR BARBAKOW ALSO IS ACUTELY AWARE OF OTHERS' PERCEPTIONS RATHER THAN HUNKER DOWN BEHIND LOCKED EXECUTIVESUITE SECURITY DOORS HE HAD THEM PROPPED OPEN WITH RUBBER DOORSTOPS WHEN HE TOOK OVER HE ALSO HAS SPENT MUCH OF HIS TIME IN THE PAST WEEK REASSURING SHAREHOLDERS AND EMPLOYEES EVERY FRIDAY WORKERS AT CORPORATE HEADQUARTERS FIND A RECORDED MESSAGE FROM MR BARBAKOW ON THEIR VOICE MAIL THE DAY AFTER THE RAIDS WAS NO EXCEPTION WE NEED TO WORK THROUGH THIS AND THINGS WILL GET BETTER HE TOLD THEM PART OF THE ISSUE THAT BARBAKOW FACES IS THAT HE NEEDS TO FIND THE RIGHT PEOPLE TO TALK TO IN GOVERNMENT AND THEN HE NEEDS TO FIGURE OUT WHAT THE FEDERAL GOVERNMENT WANTS FROM THE COMPANY AT THE SAME TIME HE'S TRYING TO FIGURE OUT A METHOD OF RESOLVING THE INSURANCE COMPANY SUITS SAYS EDWIN GORDON AN ANALYST AT MORGAN STANLEY IN NEW YORK BEFORE JOINING NATIONAL MEDICAL MR BARBAKOW WAS MANAGING DIRECTOR OF THE INVESTMENT BANKING FIRM DONALDSON LUFKIN & JENRETTE AND WORKED FOR NEARLY 20 YEARS AT MERRILL LYNCH MR BARBAKOW BRIEFLY LED THE FORMER MGM/UA COMMUNICATIONS CO THOUGH HE INSISTED AT THE TIME THAT HIS JOB AT MGM/UA WAS TO BUILD THE COMPANY HE WAS SOON NEGOTIATING FOR A SALE OF THE STUDIO WHICH ULTIMATELY WENT TO ITALIAN FINANCIER GIANCARLO PARRETTI AND HIS PATHE COMMUNICATIONS CORP IN 1990 THAT DEAL WHICH QUICKLY SOURED IS STILL THE SUBJECT OF MAJOR LITIGATION HIS EXPERIENCE HAS MANY SPECULATING THAT MR BARBAKOW'S MISSION IS TO BREAK APART NATIONAL MEDICAL AND SELL THE PIECES WE HAVE BEEN FOCUSING ON WHAT BUSINESSES WE WANT TO STAY IN AND WHAT BUSINESSES OVER THE NEXT 10 YEARS WE'RE NOT EXCITED ABOUT THE EXECUTIVE SAYS NOT SURPRISINGLY ONE OF THE BUSINESSES HE'S NOT EXCITED ABOUT IS THE COMPANY'S NETWORK OF 61 PSYCHIATRIC HOSPITALS WHICH ARE THE PRIMARY FOCUS OF THE COMPANY'S LEGAL PROBLEMS AND WHICH STAND TO BE LESS PROFITABLE IN THE YEARS AHEAD UNDER HEALTHCARE REFORM THOUGH NATIONAL MEDICAL HASN'T BEEN ACTIVELY SEEKING A BUYER FOR THE DIVISION WHICH ACCOUNTED FOR ABOUT 16 OF ITS 376 BILLION OF REVENUE IN THE FISCAL YEAR ENDED MAY 31 MR BARBAKOW SAYS HE HAS BEEN APPROACHED BY OTHER PSYCHIATRICCARE FIRMS INTERESTED IN ACQUIRING THE OPERATIONS TO ENSURE THE CURRENT LEGAL MESS DOESN'T SAP ALL OF THE COMPANY'S ENERGIES MR BARBAKOW HAS DELEGATED MOST OF THE RESPONSIBILITY FOR MANAGING NATIONAL MEDICAL'S CONTINUING BUSINESS TO THE NEW PRESIDENT MICHAEL H FOCHT SR MR EAMER WAS A BIG DELEGATOR TOO GIVING HOSPITAL MANAGERS AND OTHER EXECUTIVES A GREAT DEAL OF AUTONOMY NATIONAL MEDICAL HAS BLAMED ITS LEGAL PROBLEMS ON THAT STRUCTURE CLAIMING THAT A HANDFUL OF OVERZEALOUS LOCAL ADMINISTRATORS WERE RESPONSIBLE FOR ISOLATED INSTANCES OF OVERBILLING AND ILLEGAL PAYMENTS IN EXCHANGE FOR PATIENT REFERRALS STILL GOVERNMENT INVESTIGATORS ARE SAID TO BE SEEKING EVIDENCE SHOWING A PATTERN OF MISCONDUCT THAT SPREAD FROM THE EXECUTIVE SUITES TO RESTORE CONFIDENCE AND SEND A MESSAGE THAT ANY PAST ILLEGAL OR UNETHICAL PRACTICES WON'T BE TOLERATED MR BARBAKOW THIS WEEK SET UP A NUMBER OF OVERSIGHT PROCEDURES AND VOWED THAT SANCTIONS WILL BE TAKEN AS APPROPRIATE AGAINST ANYONE NOT ADHERING TO COMPANY POLICY HE ALSO HAS BEEN WORKING TO REVAMP THE BOARD OF DIRECTORS SHIFTING THE BALANCE OF POWER AWAY FROM COMPANY INSIDERS THE WINNOWED 12MEMBER BOARD NOW HAS FOUR INSIDERS AND MR BARBAKOW WOULD LIKE TO SEE THAT CUT TO JUST TWO 9309020064 930902 COMPUTERS INTERNET BECOMES ROAD MORE TRAVELED AS EMAIL USERS DISCOVER NO USAGE FEES BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL BOB NICK USED TO SPEND HOURS READING AND POSTING MESSAGES ON PRODIGY SERVICES CO'S ONLINE COMPUTER SERVICE ALL AT A COST OF 1495 A MONTH BUT IN JULY PRODIGY STARTED CHARGING BY THE HOUR AND MR NICK REALIZED HIS MONTHLY BILL COULD JUMP TO 300 SO THE ELECTRICAL ENGINEER WHO WORKS FOR SPARTA INC IN HUNTSVILLE ALA SWITCHED FROM PRODIGY TO ANOTHER COMPUTER INFORMATION SERVICE THAT IS SIGNIFICANTLY CHEAPER THE INTERNET NOW MR NICK EXCHANGES AND READS AS MANY ELECTRONIC MESSAGES AS HE WISHES AND DOESN'T WORRY ABOUT THE BILL SINCE THERE IS NO PERMESSAGE FEE HE GAINS ACCESS TO THE INTERNET THROUGH SPARTA WHICH PAYS A FLAT ANNUAL FEE OF 10000 FOR ITS 650 EMPLOYEES BASICALLY SINCE THERE'S REALLY NO COST TO IT I REALLY LIKE IT HE SAYS MR NICK DISCOVERED WHAT MILLIONS OF INTERNET USERS ALREADY KNOW ONCE CONNECTED TO THE INFORMATION PATHWAY THERE ARE NO ADDITIONAL CHARGES NOT SURPRISINGLY WITH THE INTERNET GROWING RAPIDLY TRAFFIC IS RISING AS MUCH AS 15 A MONTH ITS NOUSAGEFEE POLICY IS BEGINNING TO CAUSE CONCERN AMONG COMMERCIAL ONLINE SERVICES SUCH AS PRODIGY AND COMPUSERVE AND ELECTRONIC MAIL PROVIDERS INCLUDING MCIMAIL SPRINT CORP'S SPRINTMAIL AND AMERICAN TELEPHONE & TELEGRAPH CO'S EASYLINK SERVICES I'M NOT SURE THREAT IS EXACTLY THE RIGHT WORD BUT IF YOU IGNORE IT YOU DO SO AT YOUR OWN PERIL WARNS NORMAN DECARTERET SENIOR SYSTEMS ANALYST AT ADVANTIS WHICH LIKE PRODIGY IS OWNED JOINTLY BY INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO ADVANTIS SELLS ITS OWN ELECTRONIC MAIL SERVICE MAIL EXCHANGE AND ANOTHER SERVICE THAT LINKS COMPANIES TO THE INTERNET MR DECARTERET SAYS THE INTERNET IS GOING TO FORCE A NEW WAY OF DOING BUSINESS ON SOME PEOPLE THERE WERE AN ESTIMATED 4750000 SUBSCRIBERS OF COMMERCIAL EMAIL AND ONLINE SERVICES AT THE END OF 1992 ACCORDING TO ELECTRONIC MAIL & MICRO SYSTEMS AN INDUSTRY NEWSLETTER PRODIGY CLAIMS TO BE THE MOST POPULAR ONLINE SERVICE NOBODY IS CERTAIN WHICH ELECTRONIC MAIL PROVIDER IS NUMBER ONE SINCE FIGURES ARE NOT MADE PUBLIC THE INTERNET OF COURSE ISN'T TOTALLY FREE UNIVERSITIES RESEARCH INSTITUTIONS AND CORPORATIONS ALL PAY TO HOOK THEIR COMPUTER NETWORKS DIRECTLY INTO IT CORPORATIONS PAY ABOUT 1000 A MONTH ON AVERAGE TO GIVE EMPLOYEES TYPICALLY THOSE IN RESEARCH AND DEVELOPMENT UNLIMITED INTERNET ACCESS VIA A DEDICATED DATA LINE ONCE CONNECTED HOWEVER EMPLOYEES CAN USE THE INTERNET AT NO EXTRA COST IN VIRTUALLY UNLIMITED FASHION FOR BUSINESS OR PERSONAL PURPOSES AND WHILE MOST OF THE INTERNET IS NOTORIOUSLY DIFFICULT TO USE ITS ELECTRONIC MESSAGING SYSTEM IS RELATIVELY USERFRIENDLY THE INTERNET IS A FREEWHEELING GLOBAL NETWORK OF MORE THAN 34000 SMALLER COMPUTER NETWORKS PUBLIC AND PRIVATE IT WORKS LIKE A NONPROFIT FOOD COOP IT HAS NO OWNER IS MANAGED BY VOLUNTEERS AND DERIVES OPERATING COSTS FROM ITS MEMBERS WHO PAY CONNECTION FEES TO LARGE REGIONAL COMPUTER HUBS THAT DIRECT THE SYSTEM'S TRAFFIC OR TO LOCALACCESS PROVIDERS THAT TIE INTO THE HUBS THE FEDERAL GOVERNMENT WHICH STARTED THE INTERNET IN 1973 STILL SUBSIDIZES IT ALTHOUGH IBM SELLS COMPUTER COMMUNICATION SERVICES THROUGH PRODIGY AND ADVANTIS 36000 OF ITS WORKERS USE THE INTERNET TO COMMUNICATE WITH CUSTOMERS AND EACH OTHER AT A MONTHLY COST OF ABOUT 80000 LESS THAN 3 PER USER INDEED PRODIGY AND OTHER ONLINE SERVICES ARE MAKING THE INTERNET EVEN MORE ATTRACTIVE BY CONNECTING THEIR WEBS TO IT WITH ELECTRONIC GATEWAYS THROUGH THESE GATEWAYS INTERNET USERS PAY NOTHING TO REACH PEOPLE WHO SUBSCRIBE TO COMMERCIAL SERVICES WHILE SOME OF THE SUBSCRIBERS TO THOSE SERVICES HAVE TO PAY TO REPLY OR TO REACH EACH OTHER IT'S CHEAPER THAN PHONE IT'S CHEAPER THAN FAX IT'S EVEN CHEAPER WHEN YOU TAKE INTO CONSIDERATION ALL THE COST OF HAVING YOUR SECRETARY TYPE A LETTER FOR YOU SAYS HOWARD FUNK ACTING EXECUTIVE DIRECTOR OF THE INTERNET SOCIETY A GROUP THAT PROMOTES THE SERVICE A BURGEONING COTTAGE INDUSTRY OF COMPANIES IS NOW OFFERING BUSINESSES AND INDIVIDUALS DIALUP INTERNET ACCESS EITHER ON A MONTHLY BASIS OR BY THE HOUR THIS ACCESS IS SLOWER THAN A DEDICATED LINE BUT LESS COSTLY SOFTWARE TOOL & DIE INC OF BROOKLINE MASS CHARGES ITS 5000 CUSTOMERS AS LITTLE AS 1 AN HOUR FOR INTERNET ACCESS VS 2 TO 2280 PER HOUR ON COMMERCIAL SERVICES AND IS SIGNING UP ABOUT 150 NEW BOSTONAREA CUSTOMERS A MONTH I WOULD SAY 60 OF OUR CUSTOMERS COME FROM COMPUSERVE PRODIGY MCIMAIL AT&T MAIL AND AMERICA ONLINE SAYS MARY RIENDEAU VICE PRESIDENT OF INFORMATION SERVICES NELIA LYDA A MEDICAL TECHNOLOGIST FROM SCOTTS VALLEY CALIF SAID SHE SWITCHED TO THE INTERNET AFTER FOUR YEARS ON PRODIGY TO SAVE MONEY SHE PAYS 1750 A MONTH FOR UNLIMITED INTERNET ACCESS THROUGH NETCOM ONLINE COMMUNICATION SERVICES INC OF SAN JOSE CALIF I THINK IT'S A TERRIFIC DEAL FOR THAT AMOUNT OF MONEY MS LYDA SAYS I CAN EMAIL THE PRESIDENT IF I WANT TO I CAN DOWNLOAD FILES AT NO EXTRA CHARGE FROM SAY COLORADO AND THERE'S NO LIMIT ON MESSAGES MS LYDA SENT AS MANY AS 100 MESSAGES A MONTH ON PRODIGY WHICH CHARGED HER 25 CENTS EACH AFTER THE FIRST 30 NOW SHE SENDS ABOUT 600 MESSAGES A MONTH WITH NO EXTRA CHARGE THE FORPROFIT SERVICES SAY THAT THEY DON'T VIEW THE INTERNET WHICH IS GROWING FASTER THAN THEY ARE AS A DIRECT COMPETITOR AND THAT THEY HAVEN'T LOST MANY CUSTOMERS TO IT ONLINE SERVICES SAY THEY ARE EASIER TO USE AND OFFER DIFFERENT SERVICES SUCH AS AIRLINE RESERVATIONS AND STOCK QUOTES AND UNLIKE THE INTERNET THE MAJOR COMMERCIAL SERVICES FEATURE COLORFUL GRAPHIC INTERFACES WITH EASY ACCESS TO HELP SCREENS EVERYONE WANTS TO JUMP ON THIS PRICE ISSUE SAYS DAVE BEZAIRE SENIOR PRODUCT MANAGER AT COMPUSERVE INC A UNIT H&R BLOCK INC THE REALITY IS ACCESSIBILITY EASE OF USE CUSTOMER SERVICE AND WORLDWIDE ACCESS IF ANYTHING THE INTERNET IS GOING TO HELP US ADDS BRIAN EK COMMUNICATIONS MANAGER FOR PRODIGY WITH EVERY BIT OF PUBLICITY AND EVERY BIT OF USAGE THAT THE INTERNET GETS IT RAISES PUBLIC AWARENESS OF ONLINE COMMUNICATIONS IN GENERAL ELECTRONIC MAIL SERVICES SAY THEY PROVIDE MORE CONFIDENTIALITY THAN THE INTERNET AND OTHER FEATURES SUCH AS GUARANTEED DELIVERY AND MESSAGE TRACKING BUT SOME INDUSTRY OBSERVERS BELIEVE EMAIL PROVIDERS ARE VULNERABLE SOME CUSTOMERS MAY DRIFT OVER TO THE INTERNET SIDE IF THEY'RE PRIMARILY SENSITIVE TO PRICE SAYS DAN BLUM A TAKOMA PARK MD CONSULTANT FOR RAPPORT COMMUNICATIONS AN EMAIL ADVISER SOME EMAIL SERVICES ALREADY ARE UNDER PRESSURE FROM BUSINESSES TO LOWER PRICES TRADITIONALLY EMAIL SERVICES CHARGE CUSTOMERS BY THE SIZE OF THE MESSAGES THEY SEND MEASURED IN CHARACTERS BUT WITH THE ADVENT OF MULTIMEDIA IN WHICH COMBINATIONS OF TEXT VOICE VIDEO AND GRAPHICS CAN BE SENT VIA COMPUTERS AND PHONES MESSAGES ARE STARTING TO MUSHROOM IN SIZE CUSTOMERS ARE BEGINNING TO ASK FOR FLATRATE PRICING WITH UNLIMITED MESSAGING MORE INTERNET MAIL IS COMING IN THAN GOING OUT OF THE GATEWAYS WHICH MAY FORCE FORPROFIT SERVICES TO STOP FREE MESSAGES FROM THE INTERNET MCI COMMUNICATIONS CORP SAYS IT HAS NO SUCH PLANS BUT AT&T EASYLINK SAYS IT IS REVIEWING ITS INTERNET POLICY COMPUSERVE MEANWHILE HAS BEEN CHARGING CUSTOMERS TO RECEIVE INTERNET MAIL SINCE 1989 AND NOW FLAGS EACH MESSAGE WITH A POSTAGEDUE TAG PRODIGY SAYS IT WILL OFFER ACCESS TO INTERNET MESSAGING THIS FALL USING COMPUSERVE'S APPROACH BUT PRODIGY HAS PUT OFF ITS INTERNET GATEWAY FOR ABOUT A YEAR THE COMPANY SAYS THE DELAY IS UNRELATED TO PRICING BUT ONE FORMER EMPLOYEE SAYS PRODIGY OFFICIALS WERE WORRIED THAT PROVIDING INTERNET ACCESS MIGHT PROMPT SOME SUBSCRIBERS TO SWITCH SERVICES 9309020063 930902 CORPORATE FOCUS GM'S HOPES FOR SWEEPING CONTRACT CHANGES EVAPORATE SMALL RELIEF IN SOME AREAS COULD STILL ADD UP TO SUBSTANTIAL SAVINGS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FOR ALL THE SWEEPING CHANGES GENERAL MOTORS CORP IS SEEKING IN ITS NEW LABOR CONTRACT ITS BEST HOPE NOW MAY BE SOME NICKELANDDIME CHANGES THAT COULD ADD UP TO SUBSTANTIAL DOLLARS IN THE END GM HAMSTRUNG BY A ROUGHLY 2000AVEHICLE COST DISADVANTAGE TO ITS DOMESTIC COMPETITORS HAD HOPED TO BE SELECTED AS THE UAW'S BARGAINING TARGET THIS YEAR SO IT COULD CRAFT AN AGREEMENT WITH THE UAW THAT WOULD INCLUDE MAJOR UNION CONCESSIONS ON HEALTH CARE AND LOWER WAGES IN ITS PARTS PLANTS HOWEVER THAT STRATEGY WAS SET BACK THIS WEEK WHEN THE UAW PICKED FORD MOTOR CO AS ITS TARGET PUTTING FORD NOT GM IN THE DRIVER'S SEAT TO CREATE THE INDUSTRY'S PATTERNSETTING LABOR PACT THE CURRENT CONTRACT EXPIRES SEPT 14 FORD HAS ALREADY OFFERED TO SWEETEN PENSIONS FOR FUTURE RETIREES IN RETURN FOR A LOWER STARTING WAGE FOR NEW WORKERS SUCH AN APPROACH WOULD BE QUITE ADVANTAGEOUS TO FORD WHICH WILL BE HIRING THOUSANDS OF NEW WORKERS IN THE NEXT FEW YEARS AND HAS A FULLY FUNDED PENSION PLAN BUT IT'S A DIFFERENT STORY FOR GM WHICH NEEDS TO GET RID OF 60000 WORKERS AND WON'T BE HIRING ANY NEW WORKERS FOR YEARS AND GM'S PENSION FUNDS ARE ALREADY UNDERFUNDED BY 14 BILLION TO 19 BILLION ALTHOUGH FORD WILL PROBABLY SET THE PATTERN FOR THE NEXT INDUSTRY CONTRACT GM CAN STILL GET RELIEF ON CERTAIN ITEMS FOR EXAMPLE UNION LEADERS SAY GM WORKERS COULD BE PERSUADED TO TAKE THEIR SUMMER VACATION DURING THE ANNUAL MODEL CHANGEOVER SHUTDOWN AS FORD WORKERS DO THAT WOULD SAVE GM ABOUT 250 MILLION IN UNEMPLOYMENT PAYMENTS ACCORDING TO ANALYST STEPHEN GIRSKY OF PAINEWEBBER INC AND GM AND UAW COULD WELL FORGE ANOTHER EARLYRETIREMENT PACKAGE LIKE THE ONE THAT ALLOWED 16000 UAW MEMBERS TO RETIRE THIS YEAR BUT ON SOME BIGTICKET ITEMS SUCH AS GM'S HEALTHCARE COSTS WHICH TOTAL 1469 A VEHICLE UNION LEADERS SAY THEY WON'T EVEN CONSIDER GIVEBACKS GM'S PREDICAMENT SHOWS HOW DIFFICULT IT IS FOR COMPANY WITH A LONG OFTEN TROUBLED LABOR HISTORY TO CONVINCE A UNION THAT IT'S NOT CRYING WOLF I THINK IT WAS NAIVE TO ASSUME GM WOULD GET A CONTRACT FILLED WITH CONCESSIONS GREAT BIG ROLLBACKS OF ONE SORT OR ANOTHER SAID ANALYST MARYANN KELLER OF FURMAN SELZ THAT WAS JUST NOT GOING TO HAPPEN GM WHOSE NORTH AMERICAN OPERATIONS POSTED LOSSES TOTALING 11 BILLION IN 1991 AND 1992 HAS SUGGESTED ITS POSITION IS SIMILAR TO CHRYSLER CORP'S IN THE EARLY 1980S WHEN CHRYSLER RECEIVED MAJOR CONCESSIONS FROM THE UAW TO HELP SAVE IT FROM BANKRUPTCY BUT UAW MEMBERS AREN'T BUYING IT I DON'T SEE GM IN ANYTHING LIKE THE DIRE STRAITS THAT CHRYSLER WAS IN 1982 SAID FRANK JOHNSON CHAIRMAN OF THE LOCAL REPRESENTING GM'S ELECTRONICS PLANT IN OAK CREEK WIS INSTEAD UNION OFFICIALS LIKEN GM'S SITUATION TO CHRYSLER'S IN 1990 THEN CHRYSLER WAS IN THE MIDST OF A BAD SLUMP AND PROTESTING VOCIFEROUSLY THAT IT COULDN'T AFFORD THE CURRENT CONTRACT CHRYSLER EVENTUALLY SIGNED THE AGREEMENT ANYHOW AND INTRODUCED SOME HOT PRODUCTS NOW ITS US AUTO OPERATIONS ARE THE MOST PROFITABLE IN THE INDUSTRY WE DIDN'T BELIEVE CHRYSLER THEN AND WE DON'T BELIEVE GM NOW SAID THOMAS FRICANO A UAW REGIONAL DIRECTOR WHO SITS ON THE UNION'S EXECUTIVE BOARD TO SOME DEGREE GM IS STILL SUFFERING FROM THE LEGACY OF FORMER CHAIRMAN ROGER SMITH IN 1982 IN THE MIDST OF A NASTY RECESSION MR SMITH PERSUADED THE UAW TO REOPEN ITS CONTRACT EARLY AND MAKE WAGE CONCESSIONS MR SMITH THEN ENRAGED THE UNION BY TURNING AROUND AND GIVING BONUSES TO GM EXECUTIVES GM'S HOURLY WORK FORCE HAS DECLINED BY SOME 200000 WORKERS SINCE THEN FORD ALSO GOT CONCESSIONS IN 1982 BUT NOW ENJOYS A STRONG RELATIONSHIP WITH THE UAW IN PART THAT'S BECAUSE FORD HAS GAINED MARKET SHARE AND AS A RESULT HAS BEEN ABLE TO HOLD EMPLOYMENT AT THE SAME LEVEL SINCE 1982 FORD'S ASSEMBLY PLANTS ARE NOW AS PRODUCTIVE AS JAPANESE PLANTS WHILE GM'S PLANTS USE ABOUT 50 MORE LABOR TO BUILD EACH CAR THIS YEAR GM BEGAN A MAJOR CAMPAIGN TO WOO THE UAW IT SLOWED THE MOVEMENT OF WORK TO OUTSIDE SUPPLIERS AND ANNOUNCED IT WOULD STOP BUILDING THE CHEVROLET CAVALIER IN MEXICO AND MOVE PRODUCTION TO LANSING MICH GM'S EFFORTS HAVE WON PRAISE FROM STEPHEN P YOKICH THE UAW'S TOP GM NEGOTIATOR BUT WHEN IT CAME TO PICK A TARGET THE UAW PLAYED IT SAFE AND PICKED THE COMPANY WITH THE DEEP POCKETS FORD STILL GM ARGUES THAT ITS IMPROVED RELATIONSHIP WITH THE UAW IS PAYING OFF INDEED MS KELLER THE ANALYST SAYS THAT MANY OF THE MOST IMPORTANT GAINS FOR GM WILL COME THROUGH CONTRACT NEGOTIATIONS AT THE PLANT LEVEL WHERE GM HAS MADE BIG IMPROVEMENTS IN PRODUCTIVITY IN THE LAST YEAR NOW IN LOCAL NEGOTIATIONS GM PLANT MANAGERS WILL ATTEMPT TO PERSUADE UNION LEADERS TO ELIMINATE RESTRICTIVE WORK RULES OR NEEDLESS JOB CLASSIFICATIONS THAT IMPEDE FURTHER PRODUCTIVITY GAINS AT THE NATIONAL LEVEL GM WILL TRY TO GET MORE FLEXIBILITY TO MOVE WORKERS BETWEEN PLANTS CURRENTLY IDLED WORKERS ARE FREE TO TURN DOWN ANY TRANSFERS TO A PLANT MORE THAN 50 MILES AWAY THIS MEANS THAT GM SOMETIMES WINDS UP PAYING COSTLY OVERTIME IN ONE LOCATION WHILE IT PAYS WORKERS TO DO NOTHING JUST 100 MILES AWAY WE'D LIKE TO BE ABLE TO INCREASE OUR MOBILITY THAT'S FOR SURE SAID A GM SPOKESMAN 9309020062 930902 MARKETING BRIEF TURNER BROADCASTING SYSTEM INC PUBLISHING UNIT HAS ACCORD TO CREATE 120 COMIC BOOKS TURNER PUBLISHING INC A UNIT OF TURNER BROADCASTING SYSTEM INC SAID IT IS TEAMING UP WITH HARVEY COMICS ENTERTAINMENT INC TO CREATE 120 COMIC BOOKS DURING THE NEXT THREE YEARS FINANCIAL DETAILS OF THE AGREEMENT WEREN'T DISCLOSED BASED ON SUCH HANNABARBERA CARTOONS AS THE FLINTSTONES MAGILLA GORILLA AND YOGI BEAR THE NEW COMIC BOOKS WILL FEATURE THE FIRST NEW STORIES AND ARTWORK FOR THESE CHARACTERS IN 15 YEARS HARVEY COMICS WHICH CURRENTLY PUBLISHES HANNABARBERA TITLES UNDER REPRINT AGREEMENTS WILL HANDLE US AND CANADIAN DISTRIBUTION WHILE TURNER WILL DISTRIBUTE THE BOOKS INTERNATIONALLY TURNER AND HARVEY WILL SHARE EACH OTHER'S REVENUE TURNER BROADCASTING AN ATLANTABASED CABLE PROGRAMMER ACQUIRED HANNABARBERA IN 1991 IN A JOINT VENTURE WITH APOLLO INVESTMENTS HARVEY COMICS BASED IN SANTA MONICA CALIF IS 115OWNED BY MCA INC AND HAS OPERATIONS IN COMICBOOK PUBLISHING AND IN FILM ENTERTAINMENT MERCHANDISING AND LICENSING 9309020061 930902 CORRECTIONS & AMPLIFICATIONS A PROGRAM ESTABLISHING A NETWORK OF HEALTHCARE PROVIDERS IS EXPECTED TO SLOW THE RISE IN HEALTH CARE COSTS AT TENNECO INC TO ABOUT 10 TO 12 THIS YEAR DOWN FROM 16 TO 18 PREVIOUSLY AN ITEM IN TUESDAY'S LABOR LETTER COLUMN INCORRECTLY REPORTED THAT THIS YEAR'S INCREASE WOULD BE SIMILAR TO PRIOR YEARS THE CANCER DRUG NOLVADEX IS SOLD BY ZENECA GROUP PLC OF BRITAIN WHICH WAS SPUN OFF FROM IMPERIAL CHEMICAL INDUSTRIES PLC EARLIER THIS YEAR AN ARTICLE YESTERDAY SAID IMPERIAL CHEMICAL STILL MARKETED THE DRUG IN AN ARTICLE JULY 2 ABOUT THE SECURITIES AND EXCHANGE COMMISSION OVERTURNING A SIXMONTH SUSPENSION OF DATEK SECURITIES CORP THE CHARGES AGAINST THE FIRM WERE INCORRECTLY STATED THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN THE RULING OVERTURNED BY THE SEC FOUND THAT DATEK IMPROPERLY SPLIT UP CUSTOMER ORDERS TO EVADE A 1000SHARE LIMIT ON A CERTAIN TRADING SYSTEM IT HAD BEEN INCORRECTLY REPORTED THAT THE BROOKLYN NYBASED FIRM WAS SUSPENDED FOR IMPROPER TRADING IN ITS OWN ACCOUNT 9309020059 930902 MARKETING BRIEF NOTED USED CDS THE DISTRIBUTION ARM OF MATSUSHITA ELECTRICAL INDUSTRIAL CO'S MCA MUSIC ENTERTAINMENT GROUP BECAME THE THIRD MAJOR DISTRIBUTOR IN A WEEK TO RESCIND PLANS TO WITHHOLD ADVERTISING DOLLARS FROM RETAILERS THAT SELL USED COMPACT DISKS MCA MUSIC'S UNI DISTRIBUTION SAID IT WOULD RESUME COOPERATIVE AD PAYMENTS TO SUCH RETAILERS IF THEY AGREE NOT TO USE THE MONEY TO ADVERTISE USED CDS EARLIER DISTRIBUTION ARMS OF TIME WARNER INC AND THORN EMI PLC ALSO BACKED OFF IN THE FACE OF LAWSUITS FROM RETAILERS SONY CORP'S DISTRIBUTION ARM IS NOW THE ONLY MAJOR DISTRIBUTOR THAT WILL PENALIZE RETAILERS THAT SELL USED CDS WHICH MUSIC COMPANIES SEE AS ERODING SALES OF NEW MORE EXPENSIVE RECORDINGS SPONSORSHIP WALT DISNEY CO SAID AMERICAN TELEPHONE & TELEGRAPH CO HAS SIGNED A 10YEAR RENEWAL AGREEMENT FOR SPONSORSHIP OF SPACESHIP EARTH AT WALT DISNEY WORLD RESORT'S EPCOT CENTER IN ORLANDO FLA SPACESHIP EARTH IS AN 18STORY GEOSPHERE THAT SIMULATES EVENTS IN THE EVOLUTION OF COMMUNICATION 9309020058 930902 LETTERS TO THE EDITOR DOCTORS MUST TARGET PREVENTATIVE CARE IN REGARD TO YOUR AUG 12 ARTICLE FEMALE DOCTORS LIKELIER TO ORDER MAMMOGRAMS THIS TYPE OF INFORMATION SHOULD BE TRANSMITTED VIA BILLBOARD SO FEW PHYSICIANS SAVE MOST FEMALE DOCTORS EVER GIVE A THOUGHT ABOUT PREVENTATIVE CARE FOR THE MOST PART IT'S NOT ENTIRELY THEIR FAULT IT'S JUST NOT SOMETHING THAT GETS MUCH ATTENTION IN MED SCHOOL OR RESIDENCY ALSO MEN ARE MOSTLY BACKWARD IN THEIR APPROACH TO PERSONAL HEALTH AND LOATH TO SPEAK TO ANYONE ABOUT ANY PERSONAL PROBLEMS FOR THE VAST MAJORITY THE REAL KEY TO THE SOLUTION OF THIS PROBLEM IS CONTAINED NEAR THE END OF YOUR ARTICLE AS DR LURIE SUGGESTS MORE RELIANCE ON NURSES CAN HELP TO PROVIDE FOR THE INCREASED USE OF THESE PREVENTATIVE SERVICES MORE PRECISELY NURSE PRACTITIONERS ARE THE COG IN THE HEALTH CARE WHEEL THAT WILL EXPAND THE BENEFITS OF PREVENTATIVE HEALTH CARE THE REASON PHYSICIANS DO NOT DO PAP SMEARS AND I ASSUME COMPLETE EXAMINATIONS OF THE FEMALE GENITAL SYSTEM IS RELATED TO EITHER POOR TRAINING IN MEDICAL SCHOOL OR LAZINESS ANYONE TRAINED BY ROBERT E LEE MD NEVER FAILED TO DO A PELVIC EXAMINATION AND RECTAL EXAMINATION ON A FEMALE AND A RECTAL EXAMINATION ON A MALE WITHOUT A GREAT TWINGE OF CONSCIENCE FIFTEEN YEARS OUT OF MEDICAL SCHOOL AND AT THE END OF THE DAY I STILL COULD NOT SLOUGH OFF DOING THESE IMPORTANT EXAMINATIONS NO HIGHTECH GADGETS ARE NEEDED ONLY A FEMALE ATTENDANT A VAGINAL SPECULUM A WOODEN SPATULA A MICROSCOPIC SLIDE A PAIR OF GLOVES AND A GOOD LIGHT THERE MAY BE TIMES WHEN VAGINAL AND RECTAL EXAMINATIONS ARE CONTRAINDICATED AND THESE REASONS SHOULD BE EXPLAINED TO THE PATIENT HOWEVER I FEEL THAT A PHYSICIAN IS GUILTY OF MALPRACTICE IF HE/SHE FAILS TO PERFORM A PELVIC INCLUDING A PAP SMEAR AND A RECTAL EXAMINATION FOR WOMEN AND A RECTAL EXAMINATION FOR MEN WHO COME FOR AN ANNUAL PHYSICAL EXAMINATION OR A PREHOSPITALIZATION VISIT BOTH MALES AND FEMALES SHOULD RECEIVE ANNUAL BREAST EXAMINATIONS MAMMOGRAMS IN ASYMPTOMATIC WOMEN UNDER 40 YEARS OF AGE ARE NOT VERY PRODUCTIVE THIS CONCLUSION IS BASED ON 20 YEARS INTERPRETING MAMMOGRAMS AND MAY EVEN BE CONTRAINDICATED 9309020057 930902 LECHTERS AUGUST SALES ROSE 15 HARRISON NJ SPECIALTY HOUSEWARES RETAILER LECHTERS INC SAID AUGUST SALES ROSE 15 TO 267 MILLION FROM 233 MILLION A YEAR EARLIER COMPARABLESTORE SALES FELL 15 FOR THE 30 WEEKS ENDED AUG 28 SALES ROSE 20 TO 1625 MILLION FROM THE YEAREARLIER 1359 MILLION WHILE COMPARABLESTORE SALES FELL 12 LECHTERS OPERATES 541 STORES IN 39 STATES 9309020056 930902 LETTERS TO THE EDITOR RICH REFUSE TO BE SACRIFICIAL LAMBS IN REGARD TO YOUR TAXBITE TREMORS ARTICLE OF AUG 13 I AM SHOCKED TO LEARN THAT AMERICANS EARNING HIGH INCOMES ARE ACTIVELY SEEKING TO REDUCE THEIR PROSPECTIVE TAX BITE RATHER THAN LINING UP TO ANSWER THE PRESIDENT'S CALL FOR SHARED SACRIFICE EVEN SUCH CLINTON STALWARTS AS SHARI LEWIS ARE PLANNING TO CHANGE THEIR BUSINESS BEHAVIOR IN HER CASE HIRING ADDITIONAL EMPLOYEES BECAUSE AS MS LEWIS SAYS IT'S EITHER DO THAT OR GIVE IT TO THE GOVERNMENT GEE MS LEWIS THE GOVERNMENT WAS COUNTING ON COLLECTING THAT MONEY AND NOT HAVING PEOPLE LIKE YOU FRITTER IT AWAY BY GIVING PEOPLE JOBS WHAT WILL THE ADMINISTRATION DO NEXT YEAR WHEN THE REVENUES FROM TAXES ON THE RICH FALL WOEFULLY SHORT OF EXPECTATIONS THEY COULD TRY TO RAISE RATES ON THE RICH EVEN FURTHER BUT I BET THEY'LL DECIDE TO TAX THE MIDDLE CLASS BECAUSE TO QUOTE ANOTHER INFAMOUS WILLIE THAT'S WHERE THE MONEY IS BY THE WAY MS LEWIS I'M A BIG FAN OF YOUR TV SHOW SO I'LL PASS ON A HELPFUL SUGGESTION YOU SHOULD APPLY FOR A LIVESTOCK GROWER'S SUBSIDY FOR RAISING LAMB CHOP AND CHARLIE HORSE THE BUREAUCRATS IN THE AGRICULTURE DEPARTMENT PROBABLY HAVE NEVER SEEN YOUR SHOWS OLD OR NEW SO THEY'LL NEVER CATCH ON 9309020055 930902 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SCHOOL IS STARTING AGAIN AND PLENTY OF PARENTS HAVE INVESTED IN NEW OR ENHANCED HOME COMPUTERS TO HELP THEIR OFFSPRING IN THE ACADEMIC BATTLES AHEAD MORE AND MORE OF THESE MACHINES ARE BEING EQUIPPED TO USE CDROM DISKS THE SHINY PLASTIC PLATTERS THAT RESEMBLE AUDIO CDS BUT CAN HOLD HUGE AMOUNTS OF TEXT PICTURES VIDEO AND AUDIO IN FACT THE SPREAD OF CDROM TECHNOLOGY HAS INTRODUCED A NEW CLASS OF SOFTWARE PROGRAMS THAT ARE COMPLETE MULTIMEDIA ELECTRONIC BOOKS WHICH USERS USUALLY STUDENTS CAN BROWSE THROUGH ON A SCREEN PUBLISHERS OF CDROMS NOT ONLY HOPE TO MAKE A MARKET OUT OF ALL THOSE HOME COMPUTER OWNERS BUT THEY ARE WATCHING THE FAR LARGER POTENTIAL OF INTERACTIVE TELEVISION WHICH COULD SOMEDAY ALLOW THEM TO TRANSFER MATERIAL CURRENTLY PUBLISHED ON CDROM DOWN A CABLE OR PHONE WIRE INTO MILLIONS OF HOMES BUT THERE ARE STILL WAY TOO FEW REALLY COMPELLING TITLES TO JUSTIFY ALL THOSE GLEAMING NEW PCS AT HOME MANY OF THE AVAILABLE TITLES ARE THIN ON CONTENT OR POORLY DESIGNED WITH OCEANS OF TINY TEXT AND A SMATTERING OF BADLY INTEGRATED GRAPHICS AND SOUNDS THROWN IN TO EARN THE NAME MULTIMEDIA ONCE IN A WHILE HOWEVER A TRULY EXCITING HIGHQUALITY ELECTRONIC BOOK TURNS UP TO REVEAL THE REAL POTENTIAL OF ELECTRONIC LEARNING MY LATEST NOMINATION TO THIS CDROM HALL OF FAME IS A 99 PROGRAM FOR APPLE COMPUTER'S MACINTOSH MODELS CALLED WHO BUILT AMERICA IT IS PUBLISHED BY VOYAGER CO SANTA MONICA CALIF 3104511383 A COMPANY THAT REGULARLY PUSHES THE EDGE OF THE ENVELOPE IN ELECTRONIC LITERATURE WHO BUILT AMERICA IS A SCHOLARLY BUT LIVELY HISTORY OF THE US FROM 1876 TO 1914 WHEN FORCES LIKE IMMIGRATION AND INDUSTRIALIZATION COMBINED TO FORGE THE NATION INTO AN ECONOMIC AND MILITARY POWERHOUSE BASED ON A BOOK BY THE SAME TITLE THE DISK BILLS ITSELF AS A SOCIAL HISTORY THAT PROCEEDS FROM THE POINT OF VIEW OF AVERAGE AMERICANS RATHER THAN A DRY RECOUNTING OF POLITICAL DIPLOMATIC OR CORPORATE MILESTONES FIGURES LIKE PRESIDENT WILLIAM HOWARD TAFT AND INDUSTRIALIST ANDREW CARNEGIE SHOW UP IN ITS ELECTRONIC PAGES BUT THEY ARE VASTLY OUTNUMBERED BY TALES AND IMAGES OF ORDINARY LABORERS FARMERS AND OTHER UNGLAMOROUS TYPES THOUGH IT CONTAINS MANY HUNDREDS OF PAGES OF TEXT AND IS MOSTLY PRESENTED IN BLACK AND WHITE THE DISK IS FAR MORE THAN A SIMPLE TRANSLATION OF THE ORIGINAL BOOK HISTORIANS ROY ROSENZWEIG AND STEVE BRIER AND VISUAL EDITOR JOSH BROWN HAVE AUGMENTED THE WRITTEN HISTORY WITH A DAZZLING ARRAY OF TIGHTLY INTEGRATED VIDEO AND AUDIO CLIPS PICTURES SONGS AND PRIMARY DOCUMENTS THAT ARE ORGANIZED INTO MORE THAN 200 EXCURSIONS FROM THE 450PAGE MAIN NARRATIVE YOU EMBARK ON THESE EXCURSIONS BY CLICKING THE MOUSE ON A LITTLE PICTURE OF A RAILROAD TRACK AT THE BOTTOM OF THE PAGE AND WHEN YOU'RE DONE EXPLORING THEM ANOTHER CLICK RETURNS YOU TO THE MAIN TEXT THE MATERIAL IS FAR TOO RICH AND EXTENSIVE TO CATALOG HERE BUT IT INCLUDES AN ACTUAL AUDIO OF POPULIST POLITICIAN WILLIAM JENNINGS BRYAN RECREATING HIS 1896 CROSS OF GOLD SPEECH OPPOSING THE GOLD STANDARD AND OF CARNEGIE RECITING HIS ESSAY GOSPEL OF WEALTH THERE ARE FILM AND AUDIO CLIPS OF THE 1912 PRESIDENTIAL CAMPAIGN IN WHICH TAFT LOST TO WOODROW WILSON AND TEDDY ROOSEVELT RAN AS AN INDEPENDENT THERE ARE EARLY COMEDY ROUTINES SHORT MOVIES OF IMMIGRANTS ARRIVING AT ELLIS ISLAND NY AND OF A HUGE WESTINGHOUSE FACTORY NEAR PITTSBURGH AND GRAINY FOOTAGE OF THE SUNKEN BATTLESHIP MAINE IN HAVANA HARBOR A FAMOUS EARLY CINEMA THRILLER THE GREAT TRAIN ROBBERY IS INCLUDED IN ITS ENTIRETY ALSO INCLUDED ON THE DISK ARE MANY ORIGINAL ARTICLES ESSAYS AND OTHER DOCUMENTS SUCH AS AN EARLY SATIRE ABOUT THE TELEPHONE BY MARK TWAIN KEY SUPREME COURT OPINIONS AND THE TEXTS OF THE CONSTITUTION AND DECLARATION OF INDEPENDENCE THERE ARE EVEN SEVERAL GAMES AND QUIZZES INCLUDING A REPLICA OF WHAT THE AUTHORS SAY IS THE WORLD'S FIRST CROSSWORD PUZZLE PUBLISHED IN NEW YORK IN 1913 SOME OF THE MOST FASCINATING ENTRIES FOR ME ARE ORAL HISTORIES OF ORDINARY PEOPLE SUCH AS A BLACK MAN RECOUNTING THE 1906 ATLANTA RACE RIOT A WOMAN WORKER DESCRIBING THE TRIANGLE SHIRTWAIST FACTORY A NOTORIOUS NEW YORK SWEATSHOP AND A LADY REMEMBERING THE PRIMITIVE METHODS OF BIRTH CONTROL SHE LEARNED TO USE IN THE ERA THE DISK COVERS WHO BUILT AMERICA MAKES GOOD USE OF THE COMPUTER'S STRENGTHS YOU CAN TAKE NOTES IN THE MARGINS OF PAGES OR IN A POPUP NOTEPAD CREATE LISTS OF DOCUMENTS AND FILM CLIPS TO WHICH YOU REFER OFTEN AND JUMP INSTANTLY BETWEEN DISTANT SECTIONS OF THE MATERIAL THAT REFER TO THE SAME OR RELATED TOPICS UNFORTUNATELY THE DISK REQUIRES A RELATIVELY POWERFUL COMPUTER TO USE A MODEL IN THE OVER2000 CLASS BECAUSE IT NEEDS A MACHINE WITH A CDROM AND AT LEAST FOUR MEGABYTES OF MEMORY I RECOMMEND USING IT ON A MAC WITH SIX OR EIGHT MEGABYTES ALSO THERE'S NO VERSION FOR IBMCOMPATIBLE COMPUTERS SO MOST PC OWNERS CAN'T USE IT PRINTING IS LIMITED AND CLUMSY THOUGH YOU CAN COPY MATERIAL FROM THE DISK INTO A WORD PROCESSOR AND THE DISK IS HARD TO FIND IN STORES SOME USERS MAY DISAGREE WITH THE AUTHORS' OBVIOUS STRONG SYMPATHY FOR THE WORKING CLASS EARLY LABOR UNIONS AND THE LIKE BUT I HOPE OTHER HISTORIANS WITH MANY OTHER POINTS OF VIEW WILL TAKE A LEAD FROM WHO BUILT AMERICA AND START FILLING COMPUTER SCREENS WITH THE SAME KIND OF STIMULATING THOUGHTFUL WORK 9309020054 930902 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FRANCE WHICH WANTS RENEGOTIATION OF A USEUROPEAN COMMUNITY ACCORD ON FARM SUBSIDIES ASKED THE EC TO TOUGHEN ITS TRADE DEFENSES TO ALLOW QUICK RETALIATION THE FRENCH GOVERNMENT ALSO URGED A REVIEW OF THE EC'S GENERALIZED SYSTEM OF PREFERENCES DESIGNED TO ALLOW DEVELOPING COUNTRIES TO EXPORT TO THE EC ON A DUTYFREE OR LOWDUTY BASIS IT SAID PREFERENTIAL TREATMENT IS NO LONGER WARRANTED FOR COUNTRIES SUCH AS MEXICO AND SOME IN ASIA FRANCE'S STANCE WAS LINKED TO TENSIONS REGARDING THE ECUS ACCORD ON AGRICULTURE SUBSIDIES ITS DEMANDS WERE VIEWED AS AN EFFORT TO INCREASE NEGOTIATING LEVERAGE FOR A SEPT 20 EC MEETING ON TRADE ISSUES THE FRENCH WANT THE EC TO TIGHTEN DEADLINES AND PROCEDURES IN COMPLAINTS ABOUT SALES OF GOODS ABROAD AT UNFAIRLY LOW PRICES AND TO BEEF UP A 1984 POLICY TO ALLOW AGGRESSIVE RETALIATION AGAINST DISCRIMINATORY TRADE PRACTICES A JAPANESELED CONSORTIUM COMPLIED WITH A COURT ORDER IN THAILAND AND TURNED OVER TO THE GOVERNMENT A 124MILE SECTION OF EXPRESSWAY THAT RUNS THROUGH BANGKOK BUT THE GROUP BANGKOK EXPRESSWAY CO CHARGED THE GOVERNMENT WITH BREAKING THEIR CONTRACT AND NATIONALIZING AN ENTERPRISE THE COURT HAD ORDERED OPENING OR RELINQUISHING THE 800 MILLION SECTION OF THE TOLL ROAD FINISHED FOUR MONTHS AGO BUT UNOPENED BECAUSE OF CONTRACT DISPUTES JAPANESE BEEF IMPORTS IN JULY CLIMBED 25 FROM A YEAR EARLIER TO 51000 TONS THE FOURTH MONTHLY INCREASE IN A ROW THE IMPORTS FROM APRIL THROUGH JULY JUMPED 28 THE SHARP INCREASES WERE ATTRIBUTED CHIEFLY TO AN APRIL 1 TARIFF REDUCTION TO 50 FROM 70 IN LINE WITH A 1988 BEEF AND CITRUS AGREEMENT WITH THE US UNDER THE PACT JAPAN ELIMINATED IMPORT QUOTAS IN 1991 IN RETURN FOR THE 70 TARIFF THOUGH THE TARIFF IS STILL HIGH JAPAN'S BEEF IMPORTS HAVE BEEN GROWING STEADILY AND EXCEEDED ITS DOMESTIC PRODUCTION FOR THE FIRST TIME IN THE FISCAL YEAR THAT ENDED MARCH 31 THIS CAUSED A SUPPLY GLUT AND PRICE DROP THE SINGAPORE GOVERNMENT EVER THE SOCIAL ENGINEER DECLARED THAT ANYONE YOUNGER THAN 18 WHO EVEN CARRIES CIGARETTES IN PUBLIC MAY BE FINED 31 SELLING CIGARETTES TO MINORS IS PUNISHABLE BY 6200 IN FINES THE CITYSTATE WHICH HAS ALSO BANNED LITTERING AND CHEWING GUM SEEKS TO BECOME A SMOKEFREE COUNTRY BUT THE SMOKING RATE AMONG YOUTHS SOARED IN RECENT YEARS DESPITE INCREASINGLY STRICT LIMITS ON TOBACCO USE AND HEFTY FINES INDOOR SMOKING IS WIDELY PROHIBITED THE AIRPORT DOESN'T SELL DUTYFREE CIGARETTES AND SMOKING IS FORBIDDEN ON REGIONAL FLIGHTS TOBACCO ADS ARE SEVERELY CURBED LAST MONTH SOLDIERS WERE BARRED FROM PUBLIC SMOKING WHILE IN UNIFORM JAPAN BEGAN PRINTING NEW YEN BILLS DESIGNED TO FOIL COUNTERFEITERS WHO USE COLOR COPIERS THE 1000 AND 10000 YEN BANKNOTES BEAR A SPECIAL INK ON THE CENTRAL BANK GOVERNOR'S SEAL THAT EMITS LIGHT WHEN EXPOSED TO ULTRAVIOLET RAYS AND FINE PRINT ON THE MONEY IS IMPOSSIBLE TO PHOTOCOPY THE CURRENCY WILL BEGIN CIRCULATING IN DECEMBER THE NEW BILLS WERE ORDERED AFTER THE DISCOVERY LAST APRIL OF HUNDREDS OF FORGED YEN NOTES PRODUCED BY HIGHPERFORMANCE COPYING MACHINES BULGARIA'S CABINET PROPOSED THAT PARLIAMENT TRANSFORM INTO PUBLIC DEBT SOME OF THE NONPERFORMING LOANS THAT COMMERCIAL BANKS MADE TO STATEOWNED COMPANIES THESE FIRMS OWE ABOUT 274 BILLION THEIR NONPERFORMING DEBTS AND INTEREST ARREARS WILL BE TOTED UP SOON FOLLOWING AUDITS THE CONVERSION PROGRAM WOULD BE LIMITED TO LOANS ISSUED BEFORE 1990 CREDITOR BANKS WOULD RECEIVE BONDS BULGARIAN CENTRAL BANK OFFICIALS SAID THE LOAN CONVERSION MAY SINK SOME BANKS OR CAUSE MAJOR LOSSES FOR THEM BUT FAVORED THE PROGRAM BECAUSE IT COULD HELP ADVANCE PRIVATIZATIONS SOUTH KOREA'S FINANCE MINISTRY UNVEILED A TAXREFORM PACKAGE INTENDED TO MAKE TAX TREATMENT MORE EQUITABLE AND BOOST ANNUAL REVENUES BY 124 BILLION STARTING NEXT YEAR CORPORATE RATES NOW 20 AND 34 WOULD BE REDUCED TO 18 AND 32 RATES ON INDIVIDUALS' PAY EXCEEDING 19800 NOW TAXED BETWEEN 30 AND 50 WOULD FALL TO BETWEEN 27 AND 47 TAX RATES ON GASOLINE AND DIESEL OIL NOW 109 AND 9 RESPECTIVELY WOULD RISE TO 150 AND 20 WITH THE INCREASED REVENUE EARMARKED TO IMPROVE ROADS SUBWAYS AND PORTS PURCHASES OF KEROSENE AND LIQUEFIED NATURAL GAS NOW TAXEXEMPT WOULD BE SUBJECT TO A 10 LEVY TO HEAD OFF TRADE FRICTION ESPECIALLY WITH EUROPEAN LIQUOR MAKERS SOUTH KOREA DECIDED TO LOWER THE 150 SALES TAX ON WHISKY AND BRANDY TO 120 INITIALLY AND TO 100 IN 1996 CUSTOMS DUTIES ON MANY LIQUORS WOULD ALSO DROP TO 20 IN 1996 FROM THE CURRENT RANGE OF 30 TO 40 IN A SETBACK FOR CHINA'S PURSUIT OF A MARKETDRIVEN ECONOMY SHANGHAI WILL REIMPOSE PRICE CONTROLS SUNDAY ON MEAT AND VEGETABLES AFTER FLOODING AND OTHER NATURAL DISASTERS CAUSED SKYROCKETING FOOD PRICES BEIJING CONFIRMED IT HAS BEGUN TRIAL OPERATIONS OF THE DAYA BAY NUCLEAR POWER PLANT IN THE SHENZHEN ECONOMIC ZONE ADJACENT TO HONG KONG WHERE OPPONENTS FEAR ITS PROXIMITY BECAUSE THE PLANT WAS BUILT NEAR EARTHQUAKE FAULT LINES 9309020053 930902 CANADA'S HIGH COURT TO BE ASKED FOR RULING ON AIRLINES' CONTRACT TORONTO GEMINI GROUP AUTOMATED DISTRIBUTION SYSTEMS INC SAID IT WILL ASK CANADA'S SUPREME COURT TO RULE ON WHETHER THE COUNTRY'S COMPETITION TRIBUNAL HAS JURISDICTION TO FREE CANADIAN AIRLINES INTERNATIONAL LTD FROM A COMPUTERSERVICE CONTRACT WITH GEMINI GEMINI'S MOVE MARKS THE LATEST MANEUVER IN A LEGAL DOGFIGHT THAT COULD DETERMINE THE FATE OF CANADIAN AIRLINES' PARENT PWA CORP CALGARY ALBERTA AMR CORP THE PARENT OF AMERICAN AIRLINES HAS AGREED TO BUY A ONETHIRD EQUITY INTEREST IN FINANCIALLY TROUBLED CANADIAN FOR 246 MILLION CANADIAN DOLLARS US1865 MILLION BUT THE PACT WILL BE CALLED OFF AT THE END OF THIS YEAR IF CANADIAN CAN'T SHIFT ITS SEATINVENTORY BUSINESS TO AMR'S SABRE COMPUTER NETWORK GEMINI AND AIR CANADA MONTREAL ARE FIGHTING CANADIAN'S BID TO GET OUT OF THE COMPUTER CONTRACT AIR CANADA AND PWA ARE PARTNERS IN THE GEMINI SYSTEM THE COMPETITION TRIBUNAL THIS YEAR DECIDED IT DIDN'T HAVE JURISDICTION TO FREE CANADIAN FROM THE GEMINI CONTRACT BUT A LOWER FEDERAL COURT RECENTLY ORDERED THE AGENCY TO RECONSIDER THAT DECISION A PWA SPOKESWOMAN DENOUNCED GEMINI'S SUPREME COURT APPLICATION AS A A CONTINUED DELAY STRATEGY AIMED AT DERAILING THE COMPANY'S ARRANGEMENT WITH AMR MEANWHILE IN A MOVE TO BOLSTER CASH RESERVES PWA SAID IT AGREED TO SELL A BOEING 767300ER AIRCRAFT FOR US66 MILLION TO A LEASING COMPANY PWA SAID CANADIAN AIRLINES WILL REALIZE US155 MILLION FROM THE SALE AFTER DEBT RETIREMENT 9309020051 930902 WHO'S NEWS FERROFLUIDICS TO SEEK OUSTER OF MOSKOWITZ FROM TOP POSITIONS NASHUA NH FERROFLUIDICS CORP SAID ITS BOARD OF DIRECTORS HAS CALLED A SPECIAL MEETING TO REMOVE RONALD MOSKOWITZ FROM THE POSITIONS OF CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER ON GROUNDS THAT HE ALLEGEDLY VIOLATED SECURITIES LAWS AND TOOK ACTIONS WITHOUT BOARD APPROVAL RICHARD GROBERG A FERROFLUIDICS SPOKESMAN DECLINED TO ELABORATE ON THE NATURE OF THE ALLEGATIONS THE COMPANY SAID MR MOSKOWITZ HAS DENIED THE CHARGES THE MEETING HAS BEEN DELAYED UNTIL SEPT 20 TO ALLOW MR MOSKOWITZ ONE OF THE COMPANY'S FOUNDERS TIME TO PREPARE HIS RESPONSE FERROFLUIDICS SAID LAWRENCE IASON AN ATTORNEY FOR MR MOSKOWITZ SAID IN A STATEMENT THAT MR MOSKOWITZ HAS ALWAYS ACTED IN THE BEST INTERESTS OF THE COMPANY AND ITS SHAREHOLDERS HE HAS CERTAINLY NOT VIOLATED ANY LAWS OR COMMITTED ANY IMPROPRIETIES FERROFLUIDICS SAID IT CHOSE PAUL F AVERY JR A DIRECTOR AND MEMBER OF THE EXECUTIVE COMMITTEE TO TEMPORARILY ASSUME THE POST OF CHIEF EXECUTIVE MR AVERY COULDN'T BE REACHED LATE YESTERDAY IN A POSSIBLY RELATED MOVE GOTTFRIED HELLER PRESIDENT OF FIDUKA DEPOTVERWALTUNG A PORTFOLIO MANAGEMENT CONCERN IN GERMANY RESIGNED FROM FERROFLUIDICS' BOARD YESTERDAY LAST MONTH FERROFLUIDICS DISCLOSED THAT IT ALONG WITH UNNAMED INVESTORS ARE UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION ON SEVERAL ISSUES PART OF THE INVESTIGATION APPARENTLY GREW OUT OF A PAYMENT FERROFLUIDICS MADE TO A BROKERAGE FIRM AND AN ANALYST WHO PRODUCED A REPORT ON THE COMPANY WHICH MAKES MAGNETIC FLUIDS USED IN BEARINGS POLLUTION CONTROL AND DISK DRIVES THE SEC ALSO IS INVESTIGATING WHETHER THE COMPANY OR INDIVIDUALS VIOLATED SECURITIES LAWS THE COMPANY SAID LAST MONTH A SHAREHOLDER FILED SUIT AGAINST THE COMPANY LAST MONTH IN US DISTRICT COURT IN CONCORD NH CHARGING IT WITH DISCLOSURELAW VIOLATIONS THE SUIT WAS BROUGHT AS A CLASS ACTION ON BEHALF OF PEOPLE WHO BOUGHT THE COMPANY'S STOCK BETWEEN SEPT 28 1992 AND AUG 10 1993 FERROFLUIDICS HAS SAID IT WILL VIGOROUSLY DEFEND THE LAWSUIT 9309020050 930902 COUNTERPOINT DON'T DISCARD DISCHARGE PETITION SECRECY BY NORMAN ORNSTEIN THE LATEST PARTISAN CONFRONTATION INSIDE CONGRESS IS OVER AN ARCANE HOUSE PROVISION CALLED THE DISCHARGE PETITION WITH THE ACTIVE COMPLICITY OF THIS NEWSPAPER'S EDITORIAL PAGE AND IN DEFIANCE OF HOUSE RULES REPUBLICAN JAMES INHOFE HAS PUBLISHED THE NAMES OF SIGNERS AND NONSIGNERS OF A DISCHARGE PETITION FOR HIS OWN PETITION TO REQUIRE THAT NAMES BE MADE PUBLIC HIS ARGUMENT IS THAT THE RULE PROHIBITING DISCLOSURE OF THE NAMES LETS COWARDLY REPRESENTATIVES HAVE IT BOTH WAYS SATISFYING THEIR LEADERS WHO KEEP POPULAR BILLS AND RESOLUTIONS BOTTLED UP IN COMMITTEES WHILE LETTING CONSTITUENTS AND LOBBYISTS THINK THE CONGRESSMEN SUPPORT THE BILLS WHEN IN FACT THEY REFUSE TO ACT TO BRING THEM TO A VOTE RUSH LIMBAUGH AND OTHER CONSERVATIVES HAVE JOINED MR INHOFE'S CRUSADE HELPING TO ENLIST MEMBERS SKITTISH ABOUT APPEARING TO OPPOSE AN ANTISECRECY MEASURE THAT ON THE SURFACE SOUNDS SO REASONABLE IT IS NOT BEFORE JUMPING ON BOARD LAWMAKERS SHOULD REALIZE THAT THE FRAMERS OF THE CONSTITUTION IF THEY WERE HERE TODAY ALMOST CERTAINLY WOULD OPPOSE MR INHOFE'S IDEA AS A GIANT STEP TOWARD THE KIND OF PLEBISCITARY DEMOCRACY THEY FEARED THE MOST AND A GIANT STEP AWAY FROM THE KIND OF REPUBLICAN DEMOCRACY THEY WORKED HARD TO CREATE THE DISCHARGE PETITION WAS CREATED IN THE HOUSE IN 1910 AS PART OF A PACKAGE OF DRAMATIC REFORMS AIMED AT THE DICTATORIAL POWER EXERCISED BY SPEAKER JOSEPH CANNON CANNON HAD UNILATERALLY APPOINTEDAND UNAPPOINTED MEMBERS AND CHAIRS TO COMMITTEES AND HAD DOMINATED THE MAJORITY PARTY CAUCUS AND THE FLOOR WHEN THE HOUSE REBELLED IT CREATED A MORE DECENTRALIZED SYSTEM BUT MEMBERS OF CONGRESS WANTED TO BE SURE THEY DID NOT REACT AGAINST A DICTATORIAL SPEAKERSHIP ONLY TO CREATE DICTATORSHIPS OF COMMITTEES OR THEIR CHAIRMEN THE REFORMERS' INTERNAL CHECKS AND BALANCES INCLUDED A FAILSAFE PROVISION TO KEEP A COMMITTEE FROM UNREASONABLY KILLING A BILL THAT COULD MUSTER SUPPORT FROM A MAJORITY OF THE FULL HOUSE AND DESERVED FLOOR CONSIDERATION AND PASSAGE THE DISCHARGE PETITION IF A BILL HAS SPENT MORE THAN 30 DAYS IN A STANDING COMMITTEE ANY MEMBER CAN FILE A MOTION TO DISCHARGE THE BILL FOR DIRECT CONSIDERATION ON THE FLOOR IF A MAJORITY OF MEMBERS 218 SIGN THE PETITION THE BILL GETS PRIVILEGED CONSIDERATION MEMBERS CAN ADD OR WITHDRAW THEIR SIGNATURES AT ANY TIME UNTIL A MAJORITY OF VOTES IS SECURED UNDER RULES THAT ARE MORE THAN 50 YEARS OLD THE NAMES ON THE PETITION ARE NOT DISCLOSED UNTIL AT LEAST 218 SIGNATURES ARE OBTAINED AT WHICH POINT THE NAMES ARE PUBLISHED IN THE CONGRESSIONAL RECORD IT IS THIS LATTER PROVISION THAT HAS SO EXERCISED MR INHOFE AND HIS ALLIES THE DISCHARGE PETITION WAS DESIGNED TO BE A LAST RESORT FEWER THAN ONE BILL PER CONGRESS ON AVERAGE HAS ACTUALLY BEEN DISCHARGED OVER THE PAST 50 YEARS AND LESS THAN A HANDFUL HAVE ACTUALLY BECOME LAW THE 1910 REFORMERS EXPECTED THAT THIS WOULD BE THE CASE THAT LAWMAKERS WOULD WANT TO DEFER TO A PROCESS THAT LETS COMMITTEES IMMERSE THEMSELVES IN THE DETAILS OF BILLS IN A WAY THAT A COLLECTIVE CHAMBER OF 435 INDIVIDUALS CANNOT THEY WANTED A STRONG AND STABLE COMMITTEE SYSTEM AND IN THE TRADITION OF THE FRAMERS THEY WANTED A SYSTEM THAT WOULD STOP LEGISLATION AS MUCH AS OR MORE THAN IT WOULD EXPEDITE IT CONGRESS WAS DESIGNED BY THE FOUNDERS AS A DELIBERATIVE BODYDESIGNED NOT TO REFLECT PUBLIC OPINION BUT TO CREATE A BROADER REASONED PUBLIC JUDGMENT FROM THE MIX OF NARROWER INTERESTS CONGRESS WAS SUPPOSED TO COOL PUBLIC PASSIONS AND TEMPER PUBLIC EMOTIONS TO BLOCK OR DELAY BAD BUT POPULAR IDEAS AS MUCH AS TO ENACT NEW PUBLIC POLICIES FORCING MEMBERS UNDER PRESSURE FROM SPECIAL INTERESTS OR A TIDE OF PUBLIC EMOTION TO GO ON RECORD SUPPORTING DISCHARGES MEANS LETTING BILLS COME TO THE FLOOR WILLYNILLY WITHOUT THE SCREEN OF COMMITTEES AND REMOVING THE ABILITY OF COMMITTEE CHAIRS AND PARTY LEADERS TO BLOCK POPULAR BUT UNWISE BILLS FROM COMING TO THE FLOOR THE RESULT WILL BE A SPATE OF FOOLISH LAWS AND EVEN LARGER DEFICITS CONSIDER ONE OF THE RARE CONTEMPORARY INSTANCES WHEN A DISCHARGE PETITION ACTUALLY LED TO A BILL'S PASSAGE IN 1983 WHEN A BILL EMERGED TO REPEAL THE 1982 TAX PROVISION REQUIRING WITHHOLDING OF INCOME ON INTEREST AND DIVIDENDS THE 1982 PROVISION ENGINEERED BY BOB DOLE TO REDUCE THE DEFICIT HAD BEEN IMMEDIATELY ATTACKED BY BANKING LOBBYISTS WHO MOUNTED A MASSIVE REPEAL CAMPAIGN FALSELY WARNING WIDOWS AND ORPHANS THAT THEIR INTEREST SAVINGS WERE ABOUT TO BE SNATCHED BY THE GOVERNMENT THE SCARE TACTICS WORKED CONGRESS WAS FLOODED WITH OUTRAGED MAIL TELEGRAMS AND PHONE CALLS UNFORTUNATELY THE DISCHARGE PETITION'S SECRECY RULE WAS AN INADEQUATE LEVEE AND THE PROVISION WAS REPEALED ADDING BILLIONS TO TODAY'S DEFICIT NOW CONSIDER AN AREA WHERE THE DISCHARGE PETITION RULE HAS KEPT BAD LEGISLATION AT BAY THE NOTCH BABIES ARE VOTERS BORN BETWEEN 1917 AND 1921 WHO WERE CAUGHT IN THE MIDDLE IN 1977 WHEN SOCIAL SECURITY BENEFIT FORMULAS WERE CHANGED AND THE CHANGES PHASED IN THE CHANGES REDUCED AN OVERLY GENEROUS BENEFIT FORMULA ENACTED BY MISTAKE IN 1972 THE NOTCHERS A BIG CADRE OF LARGELY AFFLUENT OUTSPOKEN AND POLITICALLY ACTIVE ELDERLY HAVE BEEN EMOTIONALLY VOCAL AND ADAMANT ABOUT THE NEED TO RIGHT A TERRIBLE WRONG DONE TO THEM BUT THE NOTCH BABIES DIDN'T LOSE ANYTHING THEY ACTUALLY GOT MORE THAN THEY OTHERWISE WOULD HAVE BUT WERE PUT AT A COMPARATIVE DISADVANTAGE TO THEIR ELDERS VIRTUALLY EVERY EXPERT ON ENTITLEMENTS HAS SAID THAT NOTHING CAN OR SHOULD BE DONE TO PROVIDE ADDITIONAL BENEFITS TO THE NOTCH BABIES BUT EXPERTS HAVE FEW VOTES ACROSS ALL 435 CONGRESSIONAL DISTRICTS IF NOT FOR THE FACT THAT CONGRESSIONAL LEADERS RECOGNIZING THE FISCAL FOLLY OF ACCOMMODATING THE NOTCHERS HAVE KEPT RELIEF BOTTLED UP IN COMMITTEES OUR AWFUL DEFICIT PROBLEM WOULD BE MUCH WORSE DESTRUCTIVE OR FOOLISH PROPOSALS COME ALONG ALL THE TIME THAT HAVE SIMPLE SEDUCTIVE APPEAL TO VOTERS OFTEN FRAMED BY CLEVER SPECIAL INTERESTS AND THEIR LOBBYISTS OTHERS GENERATE INTENSE SUPPORT FROM ONE PARTICULAR POWERFUL GROUP BUT NO COMPARABLE OPPOSITION ELSEWHERE A PLEBISCITARY DEMOCRACY RESPONDING IMMEDIATELY TO THE WHIMS OF PUBLIC OPINION ENACTS SUCH PROPOSALS WITHOUT THINKING A RESPONSIBLE REPRESENTATIVE DEMOCRACY BUILDS IN DELIBERATIVE MECHANISMS TO RESIST THEM THE DISCHARGE PETITION AND ITS RULES ARE DESIGNED TO PROVIDE MODEST PROTECTION FOR MEMBERS OF CONGRESS AGAINST THE RELENTLESS DEMANDS AND PRESSURES OF SPECIAL INTERESTS AND VOLATILE PUBLIC OPINION A SMALL MEASURE OF SECRECY HELPS KEEP IT THAT WAY ELIMINATE THAT PROTECTION AND WE WILL BE DELUGED BY NOTCH BABYTYPE MEASURES AND MANIPULATION BY INTEREST GROUPS THE FRAMERS UNDERSTOOD THIS IT'S A PITY MR INHOFE AND HIS ALLIES DO NOT MR ORNSTEIN IS A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON 9309020049 930902 COMMODITIES CRUDEOIL PRICES DECLINE TO UNDER 18 A BARREL AS FIGURES INDICATE OIL SUPPLIES ARE PLENTIFUL BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CRUDEOIL PRICES SLID BELOW 18 A BARREL AMID INDICATIONS SUPPLIES ARE PLENTIFUL OIL IMPORTS INTO THE US SURGED BY MORE THAN 15 MILLION BARRELS A DAY IN THE LATEST WEEK AND INVENTORIES WERE A HEFTY 21 MILLION BARRELS AHEAD OF WHERE THEY WERE LAST YEAR AT THIS TIME THE SUPPLY FIGURES FROM THE AMERICAN PETROLEUM INSTITUTE FOR THE WEEK ENDED AUG 27 WERE RELEASED AFTER THE END OF REGULAR TRADING TUESDAY ON THE NEW YORK MERCANTILE EXCHANGE EVEN THE SWIFT AND INCONCLUSIVE MEETING BETWEEN THE SECRETARYGENERAL OF THE UNITED NATIONS BOUTROS BOUTROSGHALI AND IRAQ'S DEPUTY PRIME MINISTER TARIQ AZIZ OVER SANCTIONS AGAINST IRAQI OIL EXPORTS WASN'T ENOUGH TO PUSH UP PRICES THE TWO MET FOR JUST OVER AN HOUR IN GENEVA WITHOUT REACHING ANY CONCLUSION ABOUT LIFTING THE SANCTIONS WHILE OIL MARKETS WOULD PROBABLY PLUNGE IF THE UN ALLOWED IRAQ TO SELL ANY OIL MANY TRADERS ARE APPARENTLY TIRING OF CLOSELY WATCHING THE ONAGAIN OFFAGAIN MEETINGS BETWEEN THE TWO SIDES THE MEETING DIDN'T MAKE MUCH OF A DIFFERENCE SAID ANDREW DICKSON DIRECTOR OF TRADING OF GSC ENERGY CORP IN ATLANTA THE MARKET SOLD OFF ON THE INVENTORY REPORT HE SAID ON THE NEW YORK MERC CRUDE FOR DELIVERY IN OCTOBER SETTLED AT 1797 A BARREL DOWN 32 CENTS THE CONTRACT TRADED BETWEEN 1785 A BARREL AND 1832 PETROLEUM PRODUCT PRICES ALSO FELL POLITICAL TURMOIL IN NIGERIA AND A LABOR CRISIS BOOSTED OIL PRICES EARLIER THIS WEEK ON THE EXPECTATION THAT EXPORTS FROM THAT COUNTRY WOULD BE CURTAILED BUT IT HAS BECOME APPARENT THAT OIL EXPORTS HAVEN'T BEEN DISRUPTED AND THE MARKET HAS GIVEN BACK MOST OF ITS GAINS AS WE MOVED EACH DAY FORWARD THAT STORY BECOMES LESS AND LESS OF A DRIVING FORCE MR DICKSON SAID MARKET PARTICIPANTS ALSO SAID THAT UPON REFLECTION EVEN IF NIGERIA'S OUTPUT IS CURTAILED OTHER MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WOULD PROBABLY SWIFTLY MAKE UP THE GAP OPEC IS PLANNING TO MEET LATE THIS MONTH AND TRADERS ARE EXPECTED TO BEGIN LOOKING FOR ANY SIGNS OF PRODUCTION CUTBACKS TYPICALLY BEFORE OPEC MEETINGS OIL MINISTERS FROM VARIOUS COUNTRIES SAY THEY WILL CURB PRODUCTION AND THOSE COMMENTS TEND TO BOOST PRICES IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SLIPPED AS FORECASTERS CONTINUED REDUCING THE THREAT OF AN EARLY MIDWEST FROST PRICES HAD CLIMBED ON SPECULATION THAT A COLD SPELL MIGHT KILL THE RAINSTUNTED CROPS BEFORE THEY CAN FULLY MATURE IN OCTOBER WHICH IS WHEN THE GROWING SEASON NORMALLY ENDS FIELDS IN MUCH OF THE WESTERN CORN BELT ARE DEVELOPING ABOUT TWO WEEKS BEHIND NORMAL BECAUSE EXCESSIVE RAIN DELAYED PLANTING LAST SPRING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR SEPTEMBER DELIVERY DROPPED 425 CENTS A BUSHEL TO SETTLE AT 226 A BUSHEL ONE SIGN OF THE POOR CONDITION OF THE CORN CROP WAS A RUSH BY GROWERS TUESDAY IN SOME PARTS OF IOWA MINNESOTA AND SOUTH DAKOTA TO BEAT AN APPLICATION DEADLINE FOR AN ALTERNATIVE FARM PROGRAM UNDER THE PROGRAM FARMERS CAN RECEIVE UP TO 92 OF THEIR USUAL PRICESUPPORT PAYMENT IN EXCHANGE FOR DESTROYING THE CROP ON THEIR ELIGIBLE ACREAGE FARMERS APPARENTLY SIGNED UP IN LARGE NUMBERS BECAUSE THEY EXPECT THEIR FIELDS TO GENERATE A SMALL CROP MEANWHILE TRADERS ARE CONTINUING TO WAIT FOR RUSSIA TO USE A FOODAID PACKAGE TO PURCHASE US GRAIN MOSCOW IS EXPECTED TO BUY 23 MILLION METRIC TONS OF CORN 300000 METRIC TONS OF WHEAT AND 475000 METRIC TONS OF SOYBEAN MEAL SAID DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO COPPER FUTURES PRICES FELL SHARPLY IN A LATESESSION ROUT TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR DECEMBER DELIVERY SKIDDED 215 CENTS TO SETTLE AT 8385 CENTS A POUND JUST OFF THE DAY'S LOW OF 8360 CENTS ANALYSTS SAID THAT COMMODITY FUNDS LIQUIDATED LONG POSITIONS WHEN IT BECAME CLEAR THAT CONCERNS ABOUT POSSIBLE TIGHTNESS IN THE SPOTCOPPER MARKET WERE OVERDONE BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER IN NEW YORK SAID THE MARKET HAS NOW SQUARELY FOCUSED ON BEARISH FUNDAMENTALS FOR THE BASE METAL WHICH IS USED WIDELY IN THE HOME CONSTRUCTION AUTOMOTIVE AND ELECTRONIC INDUSTRIES WEAK ECONOMIES IN EUROPE AND JAPAN SHOULD CONTINUE TO PUT DOWNWARD PRESSURE ON THE METAL AS WILL THE BUILDUP OF STOCKS IN THE UNITED STATES HE SAID PRECIOUS METALS GOLD FUTURES FELL IN MOSTLY TECHNICAL TRADING DEALERS SAID THE MARKET CONTINUES TO TRADE IN A RANGE AROUND 370375 AN OUNCE WITH LITTLE FUNDAMENTAL NEWS EMERGING TO MOVE IT FIRMLY HIGHER OR LOWER THEY SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY SETTLED AT 37260 AN OUNCE OFF 310 TED ARNOLD SENIOR METALS ANALYST WITH MERRILL LYNCH IN LONDON SAID THAT PRICES WILL EVENTUALLY RETREAT BECAUSE OF WANING DEMAND FOR GOLD BULLION FROM ASIA AND THE MIDDLE EAST AT CURRENT PRICE LEVELS DEMAND IS EXTREMELY PRICE SENSITIVE IN THOSE REGIONS HE SAID THE ARABS AND ASIANS HAVE A FIRM IDEA OF WHERE THEY WANT TO BUY GOLD THEY ARE NOT GOING TO GO CHASING AFTER A HIGHER PRICE HE SAID MOREOVER ANY RALLY IN GOLD WILL BE MET BY SUBSTANTIAL PRODUCER SELLING HE PREDICTED 9309020048 930902 BUSINESS BRIEF GENERAL ELECTRIC CO APPLIANCE SUBSIDIARY TO CLOSE TENNESSEE COMPRESSOR PLANT GENERAL ELECTRIC CO SAID ITS GENERAL ELECTRIC APPLIANCES UNIT WILL CLOSE ITS COMPRESSOR PLANT IN COLUMBIA TENN PUTTING 454 PEOPLE OUT OF WORK THE FAIRFIELD CONN COMPANY WILL NO LONGER MAKE COMPRESSORS FOR REFRIGERATORS AND SMALL AIR CONDITIONERS BECAUSE OF THE HIGH COSTS OF MEETING NEW FEDERAL ENERGY STANDARDS AND OF ELIMINATING THE NEED FOR CHLOROFLUOROCARBONS GE SAID THE COMPANY ALREADY BUYS MOST OF ITS COMPRESSORS FROM INDEPENDENT SUPPLIERS GE APPLIANCES IS NEGOTIATING THE SALE OF THE PLANT'S EQUIPMENT TO TECUMSEH PRODUCTS CO A TECUMSEH MICH REFRIGERATION PRODUCTS CONCERN GE SAID IT HAS NO PLANS TO CLOSE ANY OF ITS OTHER PLANTS 9309020047 930902 ECONOMY WHITE HOUSE SEES '96 DEFICIT OF 180 BILLION ECONOMIC GROWTH NOW PUT AT 2 FOR THIS YEAR PRIOR FORECAST WAS 31 BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE PREDICTED THAT THE NEW DEFICITREDUCTION LAW WILL DRIVE THE FEDERAL BUDGET DEFICIT DOWN TO ABOUT 180 BILLION BY THE END OF PRESIDENT CLINTON'S TERM IN AN UPDATED FORECAST THE WHITE HOUSE ALSO SAID THAT DESPITE THE DISAP POINTING ECONOMY SO FAR THIS YEAR THE BASIC PROGNOSIS FOR SLOW BUT STEADY EXPANSION WITH LOW INFLATION REMAINS UNCHANGED ADMINISTRATION ECONOMISTS EXPECT THE ECONOMY TO GROW BY 2 THIS YEAR DOWN FROM A 31 FORECAST IN FEBRUARY THAT IMPLIES ECONOMIC GROWTH AT ABOUT A 3 ANNUAL RATE IN THE SECOND HALF FOR NEXT YEAR THE ECONOMISTS ANTICIPATE 3 GROWTH DOWN FROM 33 PREDICTED EARLIER THE WHITE HOUSE BUDGET OFFICE SAID THAT BY ITS TALLY THE NEW LAW WILL REDUCE THE DEFICIT BY 5048 BILLION OVER THE NEXT FIVE YEARS ABOUT 9 BILLION MORE THAN CONGRESSIONAL DEMOCRATS CLAIMED THE NUMBER THOUGH REGARDED AS IRRELEVANT BY MANY ECONOMISTS HAS ASSUMED ENORMOUS POLITICAL PROMINENCE AND THE BUDGET OFFICE SOUGHT TO MAKE IT LOOK AS LARGE AS IT COULD A CONGRESSIONAL BUDGET OFFICE REPORT DUE LATER THIS MONTH IS EXPECTED TO USE A SMALLER TOTAL THE WHITE HOUSE FOR INSTANCE ASSUMES THAT THE GOVERNMENT WILL COLLECT 126 BILLION OVER FIVE YEARS BY AUCTIONING OFF A PORTION OF THE RADIO SPECTRUM THREE TIMES THE ESTIMATE USED IN THE ORIGINAL CLINTON BUDGET AND MORE THAN 50 ABOVE A CONGRESSIONAL BUDGET OFFICE ESTIMATE A SPOKESMAN FOR THE WHITE HOUSE BUDGET OFFICE SAID THE FIGURE REFLECTS RECENT MARKET PRICES THE TOTAL IN A NEW TWIST IN GOVERNMENT ACCOUNTING ALSO INCLUDES 44 BILLION THAT THE SENATE DISCOVERED COULD HAVE BEEN SPENT BUT WASN'T THE TALLY ALSO ASSUMES THE GOVERNMENT WILL SAVE 164 BILLION OVER FIVE YEARS BY RELYING MORE ON SHORTTERM BORROWING THE TREASURY AND THE BUDGET OFFICE HAVE SAID THAT THE TREASURY'S BORROWING PLAN WILL SAVE ONLY 108 BILLION AND THE WHITE HOUSE CONTINUES TO COUNT 44 BILLION IN SPENDING CUTS THAT WERE ALSO COUNTED IN THE 1990 DEFICITREDUCTION LAW THE WHITE HOUSE NOW PROJECTS THE DEFICIT FOR THE CURRENT FISCAL YEAR WHICH ENDS THIS MONTH AT 2853 BILLION SUBSTANTIALLY LESS THAN EARLIER FORECASTS BECAUSE SPENDING ON DEPOSIT INSURANCE AND HEALTH CARE HAS BEEN BELOW PROJECTIONS THE CONGRESSIONAL BUDGET OFFICE IS MORE OPTIMISTIC IT PUTS THE 1993 DEFICIT AT 266 BILLION ACCORDING TO CONGRESSIONAL AIDES LAST YEAR'S DEFICIT WAS A RECORD 2902 BILLION BASED ON ITS NEW READING OF THE ECONOMY THE ADMINISTRATION NOW ANTICIPATES THE DEFICIT WILL BE 2594 BILLION IN FISCAL 1994 WHICH BEGINS OCT 1 2004 BILLION IN 1995 1790 BILLION IN 1996 1843 BILLION IN 1997 AND 181 BILLION IN 1998 THE CBO'S NEW ESTIMATES ARE EXPECTED TO BE SOMEWHAT LARGER THE WHITE HOUSE EXPECTS THE DEFICIT TO GO FROM 46 OF THE GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE ECONOMY TO 22 BY 1998 WHICH IS STILL MUCH LARGER THAN MANY ECONOMISTS ADVISE IT'S A FIRST STEP BUT A MAJOR STEP BUDGET DIRECTOR LEON PANETTA SAID OF THE DEFICITREDUCTION LAW FOR ALL THE ANTISPENDING RHETORIC THE WHITE HOUSE PROJECTS THAT FEDERAL OUTLAYS WILL CLIMB TO 1748 TRILLION IN FISCAL 1998 FROM AN ESTIMATED 1424 TRILLION THIS YEAR REPRESENTING ANNUAL INCREASES OF ABOUT 42 MR PANETTA SAID THE ADMINISTRATION PLANS TO OFFER NEW MONEYSAVING SUGGESTIONS THIS FALL INCLUDING THOSE TO BE OUTLINED NEXT WEEK IN VICE PRESIDENT GORE'S NATIONAL PERFORMANCE REPORT SPENDING CEILINGS SET BY CONGRESS ALLOW FOR HARDLY ANY INCREASE IN CONGRESSIONAL APPROPRIATIONS OVER THE PERIOD BUT HEALTHCARE SPENDING MUCH OF WHICH ISN'T SUBJECT TO ANNUAL APPROPRIATION IS PROJECTED TO CLIMB AT AN 114 ANNUAL RATE DURING THE NEXT FIVE YEARS A TREND THAT MR CLINTON VOWS TO CHANGE WITH HIS HEALTH INITIATIVE THE NEW DEFICIT OUTLOOK IS SUBSTANTIALLY BETTER THAN THE ONE MADE BY THE WHITE HOUSE EARLIER THIS YEAR WHEN IT WARNED THAT THE DEFICIT WOULD APPROACH 400 BILLION BY 1998 UNLESS CONGRESS ACTED THE DEFICITREDUCTION LAW IS THE MAJOR FACTOR BUT A WHITE HOUSE DECISION TO RELY ON ITS OWN ECONOMIC FORECAST INSTEAD OF A LESS OPTIMISTIC ONE BY THE CBO ALSO CONTRIBUTED LAURA TYSON THE CHIEF WHITE HOUSE ECONOMIC ADVISER SAID THE ADMINISTRATION SHAVED ITS GROWTH FORECAST FOR THIS YEAR AND NEXT TO REFLECT THE DEATH OF MR CLINTON'S PLAN TO STIMULATE THE ECONOMY AS WELL AS THE SLUGGISH PACE OF GROWTH SO FAR THIS YEAR THE WHITE HOUSE EXPECTS THE ECONOMY TO EXPAND AT A MODEST PACE OF ABOUT 27 AFTER 1994 ALTHOUGH THE NEW FORECAST IS IN LINE WITH THOSE MADE BY PRIVATE ANALYSTS THE WHITE HOUSE UNLIKE MANY PRIVATE FORECASTERS EXPECTS LONGTERM INTEREST RATES TO REMAIN STEADY OVER THE NEXT FIVE YEARS DEFENDING THIS JUDGMENT MS TYSON SAID THE ADMINISTRATION COULDN'T IDENTIFY ANY REASON THAT LONGTERM RATES SHOULD CLIMB IN AN ILLUSTRATION OF HOW FAST INTEREST RATES ARE FALLING THE FORECAST PREDICTS THE YIELD ON 10YEAR TREASURY DEBT WILL BE AT 59 FOR THE NEXT FEW YEARS THE MARKET RATE THE DAY THE FORECAST WAS MADE BUT RATES HAVE SINCE FALLEN BELOW 55 THE FORECAST SHOWS THAT THE ADMINISTRATION EXPECTS THE FEDERAL RESERVE TO HOLD SHORTTERM RATES STEADY THIS YEAR BUT TO BEGIN PUSHING THEM UP NEXT YEAR BY ABOUT HALF A PERCENTAGE POINT AS THE ECONOMY STRENGTHENS 9309020046 930902 ROLLIN' ON THE RIVER THE GOING GETS TOUGH AS BIG BARGES RETURN TO PLY THE MISSISSIPPI BRIDGES SANDBARS LOST BUOYS ARE THREATS LANDMARKS DISAPPEAR UNDER WATER WHAT WE DO IS A NECESSITY' BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOUISIANA MO RIVERBOAT PILOT LINLEY MCDONALD GRIPS THE STEERING LEVERS TIGHTLY AS A MISSISSIPPI RIVER BRIDGE MATERIALIZES IN THE RAIN THE TOWBOAT THE JOHN PAUL ECKSTEIN IS PUSHING 12 BARGES CONTAINING ROUGHLY HALF A MILLION BUSHELS OF GRAIN THE CARAVAN IS AS BIG AS A BATTLESHIP NAVIGATING THROUGH THE BRIDGE IS TRICKY IN THE BEST OF TIMES NOW THE FEAT IS MORE DANGEROUS BECAUSE THIS SUMMER'S TORRENTIAL RAINS HAVE TEMPORARILY LIFTED THE WORLD'S SEVENTHLARGEST RIVER TO THIRD PLACE AND MADE THE CURRENT TWICE AS STRONG IN SOME PARTS THE LANKY TEXAN LOOKS OVER HIS SHOULDER AT THE OLD COTTONWOOD TREE PILOTS USE TO ALIGN THE STERNS AND ADJUSTS THE RUDDERS AS THE 800FOOTLONG METAL RAFT GLIDES THROUGH THE BRIDGE THE CURRENT THREATENS TO SLAM THE WHITEANDRED TOWBOAT AGAINST THE BRIDGE'S METAL SUPPORTS WHICH COULD TEAR THE HULL THE CABLES CONNECTING THE BARGES TWIST AND SING TWIN ENGINES HOWL AS NINEFOOTLONG PROPELLERS THRASH THE MOLASSESCOLORED WATER BOTTLES OF HOT PEPPERS DANCE IN THE GALLEY MR MCDONALD RADIOS A NEARBY TUGBOAT IT PLOWS UPRIVER AND BUNTS THE BARGES TO PUSH THE BOAT AWAY FROM THE BRIDGE THE JOHN PAUL ECKSTEIN SLIPS THROUGH THE PILOT NODS AT THE VIDEO CAMERA THE BRIDGE OPERATOR GRABBED TO RECORD THE IMPENDING CRASH SMILE DRAWLS MR MCDONALD TO CAPT JG LONG STANDING NEXT TO HIM IN THE WHEELHOUSE CAPT LONG REMEMBERING A BRIDGE HE GRAZED 33 YEARS AGO FEIGNS DISINTEREST AFTER TWO MONTHS OF RECORD FLOODING THE COAST GUARD LAST WEEK REOPENED THE UPPER HALF OF THE NATION'S MOST IMPORTANT WATERWAY TO BARGES WHICH CARRY 15 OF THE COUNTRY'S FREIGHT HOW QUICKLY TRAFFIC RECOVERS RESTS ON THE SHOULDERS OF MEN LIKE MR MCDONALD AND CAPT LONG WHO WERE AMONG THE FIRST TO NAVIGATE FROM IOWA TO THE OHIO RIVER WHERE THE MISSISSIPPI WIDENS AND THE FLOODING ENDS THE JOHN PAUL ECKSTEIN'S VOYAGE SHOWS HOW DIFFICULT IT WILL BE FOR COMMERCE ON THE RIVER TO RETURN TO NORMAL BEFORE THE SHIPPING SEASON ENDS IN DECEMBER WHEN THE MISSISSIPPI USUALLY ICES OVER THE HIGH WATER HAS DETACHED THOUSANDS OF BUOYS AND MARKERS AND SURVIVORS ARE MISPLACED BECAUSE THE CHANNEL HAS SHIFTED IN SEVERAL LOCATIONS TURNING AND STOPPING IS HARDER IN THE SWIFTER CURRENT DURING THE JOHN PAUL ECKSTEIN'S JOURNEY THE CREW COULDN'T USE THE FULL POWER OF THE LOCOMOTIVETYPE ENGINES THE WAKE COULD HAVE DAMAGED SOGGY LEVEES MORE PROBLEMS WILL ARISE AS THE MISSISSIPPI RETURNS TO ITS BANKS SEDIMENT WILL PROBABLY FALL FROM THE SLOWING CURRENT TO CREATE UNCHARTED SANDBARS SEVERAL TOWBOATS HAVE RUN AGROUND NORTH OF IOWA WHERE THE WATER HAS SUBSIDED THE MOST THE DANGER SEEMS A TONIC FOR THE JOHN PAUL ECKSTEIN'S CREW WHO FOR YEARS HAVE SEEN THEIR UNIQUE WAY OF LIFE ATTACKED FROM ALL SIDES SONS ONCE IN THE BUSINESS HAVE ABANDONED THE RIVER SHUNNING THE LONG ABSENCES FROM HOME THAT CREWS ENDURE ENVIRONMENTALISTS SAY THE INDUSTRY IS OBSOLETE JOBS ARE DISAPPEARING A MISFIRING TAX CREDIT A DECADE AGO SPAWNED A BARGE GLUT THAT TRIGGERED A MERGER WAVE CONSUMING SOME 60 FIRMS COMPANIES LAID OFF THOUSANDS WHEN THE RIVER CLOSED IN JUNE AND THE INDUSTRY HAS ONLY THREE MONTHS OF ITS SHIPPING SEASON TO RECOUP LOST BUSINESS EVERYBODY KNOWS WHAT IS AT STAKE SAYS JOHN PAUL ECKSTEIN THE 30YEAROLD PRESIDENT OF MARQUETTE TRANSPORTATION CO WHICH OPERATES 13 TOWBOATS ALL NAMED AFTER FAMILY MEMBERS I'M SURE WE'RE GOING TO COME THROUGH THIS CAPT LONG SKIPPED A FAMILY CELEBRATION FOR HIS 63RD BIRTHDAY WHEN HE GOT THE CALL TO GO TO FORT MADISON IOWA WHERE THE TOWBOAT NAMED AFTER THE COMPANY PRESIDENT HAD BEEN MAROONED SINCE LATE JUNE WITH AN UNFAMILIAR CREW OF EIGHT STITCHED FROM SEVERAL SISTER BOATS CAPT LONG STARTS THE 382MILE JOURNEY ON AUG 22 A SUNDAY WITHOUT A COOK OR A WORKING DEPTH GAUGE COBWEBS COVER THE BOAT AND SOME OF THE BARGES ARE BEGINNING TO SMELL THE GOING IS SLOW THE COAST GUARD'S NOWAKE RULE LIMITS HIM TO ONETHIRD OF HIS HORSEPOWER AND MANEUVERING INTO LOCKS SOME OF WHICH ARE ISLANDS SURROUNDED BY MILES OF FLOOD WATER IS TRICKY IN THE FAST CURRENT ON THE SECOND DAY THE BOAT IS ONLY AS FAR AS LOCK 24 IN CLARKSVILLE MO USUALLY A ONEDAY TRIP CAPT LONG FLINCHES AT THE SOUND OF HIS BARGES SCRAPING AGAINST A WALL THE EXERCISE SEEMS A WASTE OF TIME BECAUSE OF THE HIGH WATER THE TOWBOAT IS LOWERED INCHES INSTEAD OF THE USUAL SEVERAL FEET WITH DARKNESS THICKENING OUTSIDE THE WHEELHOUSE CAPT LONG LISTENS TO THE RADIO CHATTER OF VESSELS DECIDING TO STOP FOR THE NIGHT THEIR CREWS CANNOT SEE THE RIFFLES AND SHADOWS THAT SIGNAL NEW SANDBARS OR SUNKEN LEVEES CAPT LONG A STOUT MAN WITH A BALDING HEAD FRINGED BY WHITE HAIR THINKS FOR A MOMENT IN THE YELLOW GLOW OF A RADAR SCREEN IT SHOWS THE OUTLINE OF THE CURVACEOUS RIVER FOR A MILE AHEAD WHICH IS ALMOST THE DISTANCE REQUIRED TO STOP A TOWBOAT HEADING DOWNRIVER AT FULL SPEED SOME WHEELHOUSES ALSO HAVE COMPUTERIZED LOGS AND SATELLITEBASED NAVIGATIONAL GEAR NONE OF WHICH WOULD BE MUCH HELP NOW THE CAPTAIN TURNS A SPOTLIGHT ON THE RIVER A PATH OF BOBBING GREEN DOTS ON THE RIGHT AND RED ON THE LEFT REFLECT LIKE AIRPORT LANDING LIGHTS BASED ON 44 YEARS OF EXPERIENCE AND RIVER CHARTS ON WHICH HE HAS WRITTEN METICULOUS NOTES HE NOW STUDIES UNDER A FLASHLIGHT HE DECIDES THE CHANNEL BUOYS ARE PROBABLY IN THE RIGHT PLACE HE TURNS THE LIGHT TOWARD A FLOODED TOWN HE CALCULATES THE RIVER IS AT LEAST 10 FEET ABOVE NORMAL REDUCING THE RISK OF RUNNING AGROUND EVEN IF THE CHANNEL HAS SHIFTED I DON'T BELIEVE YOU CAN EVER GET A COMPUTER SMART ENOUGH TO TAKE BARGES DOWN THE RIVER LIKE THIS HE SAYS PUSHING THE THROTTLES FORWARD IN A FEW HOURS HOWEVER THE JOHN PAUL ECKSTEIN PULLS ALONGSIDE A RIVERBANK A TOWBOAT AHEAD IS SPENDING THE NIGHT IN THE NEXT LOCK APPARENTLY IN THE BELIEF THAT NOBODY ELSE WOULD TRY TO MOVE ON THE MOONLESS RIVER WHEN HIS TOWBOAT STOPS CAPT LONG ROCKS ON HIS HEELS AND PACES IN THE TINY WHEELHOUSE 40 FEET ABOVE THE WATER HE IS IN A HURRY BECAUSE THE COMPANY ONLY HAS A FEW WEEKS TO SYNCHRONIZE ITS FLEET BEFORE THE HARVESTS BEGIN THE COAST GUARD IS LIMITING THE NUMBER OF BARGES HE CAN PUSH DOWNRIVER BECAUSE STOPPING TAKES LONGER IN THE FASTER CURRENT THE THOUSANDS OF BARGES STRANDED BY THE FLOODING NEED TO GET SOUTH QUICKLY EXPORT ELEVATORS AROUND NEW ORLEANS ARE RUNNING OUT OF CORN AND SOYBEANS TWOTHIRDS OF WHICH NORMALLY ARRIVE BY RIVER AND EMPTY BARGES ARE NEEDED NORTH TO UNLOAD SMALLTOWN ELEVATORS SO FARMERS HAVE A PLACE TO STORE THEIR CROPS LIKE MOST RIVERBOAT MEN CAPT LONG IS UNACCUSTOMED TO STAYING IN ONE PLACE VERY LONG TOWBOATS WHICH DESPITE THEIR NAME MOSTLY PUSH BARGES ARE BUILT TO OPERATE 24 HOURS A DAY THE CREW IS SPLIT INTO SIXHOUR SHIFTS WITHOUT WORK TO DO IT IS HARD TO GET EXHAUSTED ENOUGH TO SLEEP THE BOAT'S 5600HORSEPOWER ENGINE ROOM MAKES THEIR CRAMPED ROOMS THROB AND SQUEAK NOW THE MEN HAVE BILLS TO THINK ABOUT MANY CREWS HAVEN'T DRAWN A CHECK SINCE LATE JUNE SOME REMORTGAGED HOMES AND FILED FOR UNEMPLOYMENT GOOD JOBS WERE HARD TO FIND BECAUSE MOST LIVE IN RIVER TOWNS WHICH SUFFERED FLOOD DAMAGE CHIEF ENGINEER MARK PARKER 36 MOWED YARDS HIS WIFE GOT A SECOND JOB AT A DISCOUNT STORE THEY GAVE UP DINING OUT AND ATTENDING SPRINT CAR RACES THE BLEARYEYED BEARSIZED MAN INSTINCTIVELY AWAKENS WHENEVER THE ENGINES SPEED UP TO HOLD THE BOAT ALONG THE RIVERBANK AGAINST THE CURRENT HE WORRIES ABOUT OVERHEATING AND FLOOD DEBRIS WRAPPING AROUND A RUDDER YOU CAN'T HELP ALWAYS LISTENING FOR TROUBLE HE SAYS AT DAWN THE JOHN PAUL ECKSTEIN RESUMES MOVING SOUTH IT SLIDES PAST RUINED LEVEES SCOURED FIELDS AND MAIN STREETS PAINTED BROWN BY THE RECEDING RIVER SOME OF CAPT LONG'S LANDMARKS ARE UNDER WATER SECTIONS WHERE THE RIVER HAS LEFT ITS BANKS IN SEARCH OF A SHORTCUT ARE UNFAMILIAR THIS RIVER'S ALWAYS CHANGING BUT NEVER LIKE THIS HE SAYS PEERING THROUGH BINOCULARS FOR A MISSING SANDBAR BY NIGHTFALL THE LIGHTS OF ST LOUIS ARE VISIBLE THE RIVER WIDENS HERE SO MARQUETTE TRANSPORTATION ORDERS THE TOWBOAT TO TAKE ON THREE MORE BARGES STILL 10 FEWER THAN THE JOHN PAUL ECKSTEIN USUALLY PUSHES DOWN THE RIVER FROM HERE RAIN BEGINS TO FALL AS A TUGBOAT SHOVES THREE 1500TON BARGES TO THE CARAVAN CURSING AND SLIPPING TWO DECK HANDS IN ORANGE LIFE VESTS LUG HUNDREDS OF POUNDS OF WIRE CABLE OVER METAL DECKS STILL HOT FROM THE 95DEGREE DAY THE TOWBOAT'S SPOTLIGHT ATTRACTS SWARMS OF BUGS AS THE CREW BANGS ANKLES AND STRAINS MUSCLES TO TIGHTEN THE RIGGING THE CABLES PING AS THEY GROW TAUT WHICH MAKES THE DECK HANDS FLINCH A SNAPPED CORD CAN CUT THE AIR AND FLESH LIKE A WHIP THEY FINISH AT 2 AM JUST FOUR HOURS BEFORE THEIR NEXT SHIFT THE JOHN PAUL ECKSTEIN PASSES THE GATEWAY ARCH IN ST LOUIS EARLY WEDNESDAY THEN IS ORDERED BY THE COAST GUARD TO PULL OVER FOR 12 HOURS COMPANY RULES FORBID THE CREW TO LEAVE THE TOWBOAT DURING THEIR 30DAY HITCHES CAPT LONG'S WIFE WORKED WITH HIM AS A COOK FOR 10 YEARS NOW SPOUSES AND GIRLFRIENDS ARE BANNED NO FISHING FROM THE BOAT EITHER THE CREW GROWS BORED WELLTHUMBED PAPERBACKS AND MECHANICS' MAGAZINES ARE SCATTERED AROUND THE BOAT BROADCAST SIGNALS FLICKER AND FADE OVER THE BOAT'S TV SET FIRST MATE JAMIE CROW 27 SPENDS HIS FREE TIME LEARNING HOW TO STEER BUT HE FEELS LITTLE PULL FOR A CAPTAIN'S LIFE EXCEPT THE SALARY AROUND 65000 A YEAR I'M IN IT FOR THE MONEY HE SAYS CAPT LONG FELL FOR RIVERBOATS WHILE HE WAS GROWING UP THE SON OF A FARMER ALONG THE OHIO RIVER HE STILL USES TERMS SUCH AS ONEWHISTLE PASS EVEN THOUGH TOWBOATS DON'T USE STEAM WHISTLES ANYMORE TO SIGNAL OTHER VESSELS KIDS ARE DIFFERENT NOW FAMILIES ARE DIFFERENT NOW SAYS CAPT LONG WHO WAS ON A RIVER DURING THE BIRTH OF HIS SON HIS SON AND SONINLAW BRIEFLY WORKED ON TOWBOATS THEN DECIDED AGAINST THE LONG SPELLS FROM HOME I LIKE HEARING BIG ENGINES RUN AND I DON'T LIKE BEING CONFINED THE CAPTAIN SAYS IT'S A GOOD LIFE LATE WEDNESDAY NIGHT THE TOWBOAT GETS PERMISSION TO LEAVE ST LOUIS THE RIVER WIDENS AND THE JOHN PAUL ECKSTEIN ACCELERATES TO 10 MILES AN HOUR EVEN THOUGH MANY BUOYS ARE MISSING THE RIVER IS STILL SO HIGH BY THURSDAY MORNING THAT CAPT LONG IN THE WHEELHOUSE CAN SEE OVER THE 52FOOTTALL FLOOD WALL AT CAPE GIRARDEAU MO INTO THE THIRD FLOOR OF DOWNTOWN BUILDINGS THE PART OF THE JOB CAPT LONG LIKES LEAST COMES NEXT A STRONG CURRENT IS MOVING AT AN ANGLE THROUGH THE THEBES RAILROAD BRIDGE THIS IS A GOOD ONE TO GET NERVOUS OVER HE SAYS HE PUSHES BACK HIS CHAIR PLANTS HIS FEET TO FEEL THE BOAT'S MOTION AND GRIPS THE RUDDER CONTROLS HE STEERS THE TOWBOAT AT THE BRIDGE TURNING HIS BARGES AGAINST THE CURRENT AND LETTING IT SLOWLY SWING THEM TOWARD THE MIDDLE SPAN ON HIS TIPTOES HE SLAPS THE THROTTLES FORWARD YOU GOT TO WATCH THIS ONE HE SAYS AS THE BARGES SURGE THROUGH THE OPENING THE RIGHT HAND PIER WILL EAT YOU ALIVE AT NOON MR MCDONALD RELIEVES THE CAPTAIN AND MAKES A LAST POT OF COFFEE ON THE RADIO HE HEARS THE CHATTER OF TOWBOATS ON THE OHIO RIVER WHERE DOZENS OF VESSELS WAIT TO HEAD NORTH THE JOHN PAUL ECKSTEIN WILL DROP ITS FULL BARGES NEAR THERE AND AWAIT NEW ORDERS THE TRIP HAS TAKEN FOUR DAYS TWICE AS LONG AS USUAL MR MCDONALD 52 HAS WEATHERED TWO DIVORCES AND THE EXPLOSION OF A PETROLEUM BARGE THAT MELTED HIS COWBOY BOOTS AND ALMOST KILLED HIM HIS THIRD WIFE LIKES THE IDEA OF THEIR RUNNING A PHOTO STUDIO THE GLOW IS GONE BUDDY HE SAYS PASSING UNDER THE LAST BRIDGE ON THE LOWER MISSISSIPPI BUT WHAT WE DO IS A NECESSITY A FEW HOURS LATER HE GRABS HIS COWBOY HAT AND HITCHES A RIDE ON A TUGBOAT TO A COMPANY VAN WAITING WITH HIS NEXT ASSIGNMENT HOW IS SHE ASKS THE DRIVER THE RIVER IS ROUGH IN SPOTS SAYS MR MCDONALD GRINNING ABOUT WHAT WE EXPECTED 9309020045 930902 MILITARY UNVEILS PLAN TO RESHAPE ARMED FORCES PLANES SHIPS ARE PRIORITY FOR FIGHTING TWO WARS NEARLY SIMULTANEOUSLY' BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON UNVEILED ITS PLAN TO RESHAPE THE US MILITARY TO FIT THE POSTCOLD WAR WORLD AND IN DOING SO TOOK THE FIRST STEPS TOWARD AN ACTIVIST DEFENSE INDUSTRIAL POLICY IN THE MOST NOTABLE AUGURY OF THAT INDUSTRIAL POLICY DEFENSE SECRETARY LES ASPIN CONFIRMED THAT THE PENTAGON INTENDS TO SPEND ABOUT 18 BILLION TO BUILD A NEW ATTACK SUBMARINE THAT THE MILITARY DOESN'T NEED IN ORDER TO KEEP OPEN GENERAL DYNAMICS CORP'S ELECTRIC BOAT DIVISION IN GROTON CONN THAT ACT IS INTENDED TO ESTABLISH ELECTRIC BOAT AS THE NATION'S SOLE SUBMARINE BUILDER THE CONSOLATION PRIZE FOR THE OTHER COMPANY THAT CURRENTLY BUILDS SUBS TENNECO INC'S NEWPORT NEWS SHIPBUILDING & DRY DOCK CO SUBSIDIARY IS THAT THE PENTAGON PLANS TO HAVE IT BUILD ANOTHER AIRCRAFT CARRIER THE FUNDAMENTAL PRINCIPLE IN THE REDESIGN OF THE NATION'S MILITARY SAID JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL WAS A DESIRE TO ALLOW THE US TO DEAL NEARLY SIMULTANEOUSLY WITH TWO MAJOR REGIONAL CONFLICTS SUCH AS THE PERSIAN GULF WAR ADDED MR ASPIN IT IS A DEFENSE BUDGET THAT HAS CHANGED ITS FOCUS FROM ONE THREAT THE SOVIET UNION TO A WHOLE NEW BUNCH OF THREATS THE NEW PLAN CALLED A BOTTOMUP REVIEW ENVISIONS A US MILITARY THAT USES SEA AND AIR POWER TO PROJECT FORCE IT THUS FAVORS THE ACQUISITION OF NEW AIRCRAFT AND THE PRESERVATION OF A ROBUST NAVY AND MARINES AT THE EXPENSE OF ARMY GROUND FORCES BY THE END OF THE DECADE UNDER THE PLAN THE NAVY WOULD HAVE 12 CARRIERS ONLY ONE LESS THAN TODAY AND 346 SHIPS DOWN FROM 443 TODAY THE MARINE CORPS WOULD HAVE 174000 ACTIVEDUTY TROOPS ONLY SLIGHTLY LOWER THAN CURRENT LEVELS AND WELL ABOVE THE LEVEL ENVISIONED BY THE BUSH ADMINISTRATION THE ARMY BY CONTRAST WOULD BE SLASHED TO 10 ACTIVE DIVISIONS DOWN FROM 14 TODAY AND 18 JUST A FEW YEARS AGO THE AIR FORCE WOULD HAVE 20 ACTIVE AND RESERVE FIGHTER WINGS COMPARED WITH 28 TODAY BUT IT WOULD HAVE ABOUT 180 STRATEGIC BOMBERS 20 FEWER THAN IT NOW OPERATES GEN POWELL CONCEDED THE REVIEW LARGELY SIDESTEPPED THE ISSUE OF HOW TO CHANGE THE NATION'S STRATEGIC NUCLEAR FORCES BUT INDICATED THE TOPIC WOULD BE REVISITED SOON IN ADDITION DEFENSE OFFICIALS SAID THE SIZE OF THE BALLISTIC MISSILE SUBMARINE FORCE IS DRIVEN BY ARMSCONTROL TREATIES THAT HAD BEEN REACHED WITH THE SOVIET UNION NOT BY MILITARY NECESSITY THE REVIEW WAS SIMILARLY TENTATIVE IN DEALING WITH THE INDUSTRIAL POLICY THAT IS EMERGING AT THE PENTAGON ASIDE FROM THE DECISION ON SUBMARINE BUILDING FEW EXPLICIT DECISIONS WERE TAKEN DEFENSE OFFICIALS HAD PROMISED EARLIER THIS YEAR FOR EXAMPLE THAT THE REVIEW WOULD ADDRESS THE DEFENSE INDUSTRY'S ANGRY DEMANDS THAT MUCH OF THE OVERHAUL AND MAINTENANCE WORK CURRENTLY PERFORMED BY MILITARY DEPOTS BE TURNED OVER TO THE PRIVATE SECTOR WHEN ASKED ABOUT THAT HOTBUTTON ISSUE YESTERDAY MR ASPIN SAID IT'S NOT COMPLETELY WORKED OUT DEFENSE OFFICIALS INDICATED THAT ADDITIONAL STEPS TO EASE THE SITUATION OF THE RAPIDLY SHRINKING DEFENSE INDUSTRY WILL BE TAKEN IN THE COMING WEEKS AMONG OTHER THINGS THE PENTAGON HOPES TO ENCOURAGE MERGERS IN THE INDUSTRY BY FORMING A TASK FORCE TO BREAK ANTITRUST LOGJAMS FOR THE MOMENT THE MAJOR INDUSTRIAL WINNERS IN THE REVIEW APPEAR TO BE GENERAL DYNAMICS FOR THE SUBMARINE DECISION AND MCDONNELL DOUGLAS CORP WHICH RECEIVED A STRONG ENDORSEMENT OF ITS E/F VERSION OF THE F/A18 NAVY FIGHTERATTACK JET MCDONNELL DOUGLAS'S TROUBLED C17 MILITARY TRANSPORT JET IS THE SUBJECT OF A SEPARATE PENTAGON STUDY THAT IS SCHEDULED BY THE END OF THIS MONTH TO DECIDE WHETHER TO CONTINUE THE PROGRAM BUT THE REVIEW TOOK NOTE OF THE MILITARY'S NEED FOR ADDITIONAL AIRLIFT CAPABILITIES AND THE C17 IS EXPECTED TO GET A TENTATIVE APPROVAL TO CONTINUE POSSIBLY HEDGED BY THE ACQUISITION OF SOME USED COMMERCIAL CARGO JETS IN ANOTHER EXPECTED MOVE THE REVIEW DECIDED TO CONTINUE THE PROGRAM TO BUILD LOCKHEED CORP'S STEALTHY F22 FIGHTER SOME IN CONGRESS HAD CHALLENGED THE F22 BECAUSE IT WAS DESIGNED TO FACE THE SOVIET AIR FORCE WHICH NO LONGER EXISTS A DEFENSE OFFICIAL WHO BRIEFED REPORTERS ON THE CONDI TION OF ANONYMITY SAID THE F22 WAS BETTER PREPARED TO EVADE GROUND FIRE THAN ARE EXISTING FIGHTERS HE SAID IT HASN'T BEEN DECIDED HOW MANY F22S TO ACQUIRE BUT THE AIR FORCE HAS INDICATED IT WOULD NEED AT LEAST 442 TO FILL ITS PLANNED 20 WINGS LOCKHEED'S MILSTAR COMMUNICATIONSSATELLITE PROGRAM ALSO RECEIVED A STRONG ENDORSEMENT FROM DEFENSE OFFICIALS WHO BRIEFED REPORTERS BUT THE COMPANY TOOK A HIT WHEN THE REVIEW DECIDED TO STOP ACQUIR ING THE F16 FIGHTER NEXT YEAR IN KEEPING WITH CLINTON ADMINISTRATION POLICY AND THE DEEP DESIRES OF THE MARINES THE REVIEW ALSO ENDORSED THE TROUBLED V22 OSPREY TILTROTOR TROOP TRANSPORT MADE BY A JOINT VENTURE OF BOEING CO AND A UNIT OF TEXTRON INC LOOKING FURTHER INTO THE FUTURE OF TACTICAL AIRCRAFT THE PENTAGON OFFICIALS CONFIRMED THEY ARE PLANNING A JOINT ADVANCED STRIKE TECHNOLOGY PROGRAM INTENDED TO AVOID THE PITFALLS ENCOUNTERED BY PAST ATTEMPTS TO DEVELOP JOINT NAVYAIR FORCE FIGHTERS THIS PROGRAM IS AIMED AT ACHIEVING COMMONALITY IN THE ELECTRONIC GUTS OF THE PLANE WHILE ALLOWING THE SERVICES TO DEVELOP AIR FRAMES SUITED TO THEIR PURPOSES THE NAVY FOR EXAMPLE VALUES AN AIRCRAFT THAT CAN WITHSTAND THE CONTROLLED CRASH OF CARRIER LANDINGS WHILE THE AIR FORCE LOOKS MORE FOR RANGE AND SPEED MR ASPIN ESTIMATED THAT AS MUCH OF 80 OF NAVY AND AIR FORCE AIRCRAFT MIGHT EVENTUALLY HAVE COMMON PARTS IN THE AREA OF DEVELOPING DEFENSES AGAINST BALLISTIC MISSILES SUCH AS SCUDS MR ASPIN SAID THE REVIEW DECIDED TO CONTINUE EMPHASIZ REGIONAL DEFENSE AS OPPOSED TO DEFENDING THE ENTIRE CONTINENTAL US OVER THE NEXT FIVE YEARS THE PLAN CALLS FOR 12 BILLION TO BE SPENT ON REGIONAL DEFENSE 3 BILLION TO BE SPENT ON NATIONAL MISSILE DEFENSE SUCH AS BRILLIANT EYES THE HIGHTECH OUTERSPACE SYSTEM FOR DETECTING MISSILE LAUNCHES AND 3 BILLION TO BE SPENT ON MOREBASIC RESEARCH THAT 18 BILLION TOTAL REPRESENTS A 21 BILLION CUT FROM THE BUSH ADMINISTRATION'S PLANS FOR ANTIMISSILE DEFENSES OR STAR WARS BUT ANALYSTS SAID CONGRESSIONAL OPPOSITION TO THE PROGRAM WAS SO VIGOROUS THAT MR ASPIN IS UNLIKELY TO GET ANY MORE THAN THAT AMOUNT THAT'S A POLITICALLY ASTUTE WAY TO GO BECAUSE I DON'T KNOW WHAT THE TRAFFIC WILL BEAR ON THE HILL SAID JACQUELYN DAVIS OF THE INSTITUTE FOR FOREIGN POLICY ANALYSIS WHO HAS STUDIED THE ISSUE OVERALL THE BOTTOMUP REVIEW RECEIVED MIXED REVIEWS WITH OBSERVERS SAYING IT CONTAINED SIGNIFICANT CHANGES BUT FEELING THAT IT DIDN'T LIVE UP TO THE PROMISES OF ASPIN AIDES IT FAILS THE TRUTHINLABELING LAW SAID ROBERT GASKIN A DEFENSE ANALYST AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY HE SAID IT DIDN'T PROVIDE SUFFICIENT FORCES TO FIGHT THE TWO WARS OFFERED AS ITS BASIC PRINCIPLE BUT ANDREW KREPENEVICH DIRECTOR OF THE DEFENSE BUDGET PROJECT DISAGREED ARGUING THAT THE REVIEW SETTLED ON TOO LARGE A FORCE STRUCTURE FOR THE THREATS NOW FACING THE US THE FORCE IS PROBABLY TOO LARGE FOR THE LIKELY SHORTTERM THREAT AND NOT AFFORDABLE BEYOND THE SHORT TERM HE SAID 9309020044 930902 BUSINESS BRIEF ADVACARE INC EXTENSION OF DEBT STANDSTILL IS BEING SOUGHT BY COMPANY ADVACARE INC DALLAS SAID IT IS NEGOTIATING AN ADDITIONAL EXTENSION OF AN AGREEMENT WITH ITS PRINCIPAL BANK AND SUBORDINATED DEBTHOLDERS THAT WOULD LET IT FORGO PRINCIPAL AND INTEREST PAYMENTS ON A 22 MILLION CREDIT LINE UNTIL THE END OF NOVEMBER STANDSTILL AGREEMENTS ADVACARE ARRANGED IN JUNE EXPIRED SUNDAY IN A STATEMENT THE MEDICAL MANAGEMENT SERVICES COMPANY SAID IT EXPECTS TO COMPLETE NEGOTIATIONS IN THE NEXT FEW WEEKS AND THAT IT CONTINUES WORKING ON A PLAN TO RESTRUCTURE THE DEBT COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT ADVACARE RECENTLY REPORTED A LOSS OF 12 MILLION OR 10 CENTS A SHARE FOR ITS THIRD QUARTER ENDED JUNE 30 REVENUE FELL TO 191 MILLION FROM 203 MILLION A YEAR EARLIER 9309020043 930902 INTERNATIONAL BRIEF WATERFORD WEDGWOOD PLC CRYSTAL CHINA MANUFACTURER SWUNG TO PROFIT IN FIRST HALF ANGLOIRISH WATERFORD WEDGWOOD PLC SWUNG TO A PRETAX PROFIT OF 400000 IRISH POUNDS OR PUNTS 557400 IN THE FIRST HALF OF 1993 FROM A 58 MILLIONPOUND LOSS IN THE YEAREARLIER PERIOD AS COSTCUTTING PRODUCED OPERATING PROFITS IN BOTH ITS CRYSTAL AND CHINA OPERATIONS UNIT SALES WERE FLAT BUT THE COMPANY SAID IT WAS BENEFITING FROM THE DECLINE IN THE BRITISH AND IRISH POUNDS AGAINST OTHER CURRENCIES IN MONETARY TERMS SALES ROSE 37 TO 1354 MILLION POUNDS CHAIRMAN DONALD P BRENNAN SAID THE BOARD DOES NOT EXPECT ANY MAJOR ECONOMIC GROWTH IN ITS MARKETS IN THE NEAR FUTURE NONETHELESS THERE ARE REAL OPPORTUNITIES FOR US TO CONTINUE TO GROW MARKET SHARE WATERFORD'S BUDGET LINE OF CRYSTAL MADE IN THE FORMER YUGOSLAVIA GERMANY AND PORTUGAL CONTINUED THE STRONG GROWTH TREND SEEN LAST YEAR IN THE US MARKET MR BRENNAN SAID 9309020042 930902 WHAT'S NEWS WORLDWIDE ARAB AND ISRAELI LEADERS TRIED TO RALLY SUPPORT FOR THEIR PEACE PLAN WITH AN AGREEMENT ON PALESTINIAN SELFRULE NEARLY READY TO BE SIGNED ARAB AND ISRAELI NEGOTIATORS APPEALED FOR SUPPORT AS THEY RUSHED TOWARD ANOTHER ANTICIPATED MILESTONE MUTUAL ISRAELIPLO RECOGNITION ISRAEL'S PRIME MINISTER RABIN WENT ON THE RADIO TO EXPLAIN THE MERITS OF THE SELFRULE PLAN IN TUNIS THE PLO'S ARAFAT MET WITH HIS FATAH FACTION WHICH IS EXPECTED TO ISSUE A DECISION ON THE AUTONOMY PLAN TODAY JORDAN IS CLOSE TO CONCLUDING A STATEMENT OF PRINCIPLES WITH ISRAEL THAT WOULD MEAN PROGRESS TOWARD AN EVENTUAL PEACE TREATY OFFICIALS IN AMMAN SAID BOSNIA TALKS COLLAPSED AS SERBS AND CROATS REFUSED TO CEDE MORE LAND THE GENEVA PEACE TALKS ABRUPTLY BROKE OFF JUST AS IT SEEMED THE THREE FACTIONS WERE ON THE VERGE OF AN ACCORD ON HOW TO DIVIDE THE COUNTRY BOSNIA'S MUSLIM PRESIDENT CRITICIZED A PROPOSED PARTITION PLAN FOR NOT GRANTING THE MUSLIMS ACCESS TO THE SEA AND MORE LAND IN THE NORTHWEST OTHER LEADERS ACCUSED HIM OF MAKING UNREASONABLE DEMANDS UNFORTUNATELY THE WAR WILL CONTINUE CROATIA'S PRESIDENT SAID MEDIATOR OWEN VOICED FEARS THAT FIGHTING WOULD NOW INCREASE PARTICULARLY IN CENTRAL BOSNIA WHERE MUSLIMS HAVE BEEN BATTLING CROATS THE PENTAGON PRESENTED ITS PLAN TO RESHAPE THE US MILITARY THE PLAN FOR A POSTCOLD WAR MILITARY FOCUSES ON SEA AND AIR POWER FAVORING ACQUISITION OF AIRCRAFT AND THE PRESERVATION OF STRONG NAVY AND MARINE FORCES AT THE EXPENSE OF ARMY GROUND TROOPS DEFENSE SECRETARY ASPIN CONFIRMED THAT THE PENTAGON INTENDS TO SPEND 18 BILLION TO BUILD AN ATTACK SUBMARINE THAT ISN'T NEEDED IN ORDER TO KEEP OPEN THE GENERAL DYNAMICS ELECTRIC BOAT DIVISION BY THE END OF THE DECADE UNDER THE PLAN THE ARMY WOULD BE SLASHED TO 10 ACTIVE DIVISIONS DOWN FROM 14 TODAY AND 18 JUST A FEW YEARS AGO THE US AND RUSSIA NEARED AN ACCORD ON THE FIRST COMMERCIAL US USE OF THE RUSSIAN SPACE STATION MIR IN ORBIT SINCE 1986 THE AGREEMENT UNDER WHICH THE US IS CONSIDERING PAYING UP TO 400 MILLION OVER FOUR YEARS WOULD GO FURTHER THAN THE MORE SYMBOLIC JOINT SPACE EFFORTS THAT ALREADY ARE PLANNED RUSSIA'S YELTSIN SUSPENDED VICE PRESIDENT RUTSKOI AND A VICE PREMIER CITING CORRUPTION ALLEGATIONS BUT PARLIAMENT CHIEF KHASBULATOV SAID THE PRESIDENT'S UNLAWFUL ORDERS WOULDN'T BE CARRIED OUT FOR WEEKS THERE HAVE BEEN CHARGES OF HIGHLEVEL CORRUPTION THE JUSTICE DEPARTMENT SAID IT WON'T FIGHT THE RETURN OF ACCUSED WAR CRIMINAL DEMJANJUK TO THE US BUT WOULD PURSUE HIS DEPORTATION IF HE COMES BACK DEMJANJUK ACQUITTED IN ISRAEL OF BEING NAZI GUARD IVAN THE TERRIBLE IS AWAITING AN ISRAELI SUPREME COURT RULING TODAY ON WHETHER HE CAN BE TRIED FOR OTHER ALLEGED WAR CRIMES HURRICANE EMILY VEERED AWAY FROM THE ATLANTIC COAST AFTER CAUSING FLOODING AND DAMAGING A NUMBER OF BUILDINGS ON NORTH CAROLINA'S OUTER BANKS EMILY WITH 115 MPH WINDS THAT CHURNED UP 15FOOT WAVES STRUCK ONLY A GLANCING BLOW AT THE COAST LOUIS FREEH WAS SWORN IN AS DIRECTOR OF THE FBI IN A CEREMONY ATTENDED BY PRESIDENT CLINTON WHO CALLED HIM A BORN LEADER FREEH 43 A FORMER FBI AGENT WHO LATER SERVED AS A FEDERAL PROSECUTOR AND JUDGE IN NEW YORK IS THE FIFTH DIRECTOR THE FBI HAS HAD IN ITS 69YEAR HISTORY SENATE REPUBLICAN LEADER DOLE SAID US FOREIGN POLICY WAS AT A CROSSROADS AS HE URGED CLINTON TO PULL US TROOPS OUT OF SOMALIA AND TO OPPOSE THE PROPOSED PARTITION OF BOSNIA DEFENSE SECRETARY ASPIN MEANWHILE SAID UN FORCES BATTLING FOR STABILITY IN SOMALIA ARE ON THE VERGE OF MAKING THIS THING WORK CENTRAL AFRICAN REPUBLIC OFFICIALS FREED JEANBEDEL BOKASSA THE FORMER SELFSTYLED EMPEROR WHO WAS TOPPLED IN 1979 AMID ACCUSATIONS OF CHILD MURDER AND CANNIBALISM THE CURRENT MILITARY DICTATOR UNEXPECTEDLY RELEASED ALL INMATES IN THE NATION'S 20 PRISONS INCLUDING THE 72YEAROLD BOKASSA BRAZIL WILL SET UP A SPECIAL UNIT WITHIN THE FEDERAL POLICE TO INVESTIGATE DEATH SQUADS FOLLOWING SUNDAY'S MASSACRE OF 21 SLUM DWELLERS IN RIO DE JANEIRO OFFICIALS SAID THE PROBE IS TO FOCUS ON MEMBERS OF THE MILITARY AND CIVIL POLICE FORCES 9309020041 930902 MIRAGE RESORTS UNIT CALLS NOTES LAS VEGAS MIRAGE RESORTS INC SAID ITS GNS FINANCE CORP UNIT CALLED FOR REDEMPTION AND CANCELED ALL REMAINING 76625000 PRINCIPAL AMOUNT OF ITS 1375 FIRST MORTGAGE NOTES OUTSTANDING DUE OCT 1 2000 THE COMPANY SAID THE REDEMPTION PRICE IS 108 OF FACE AMOUNT PLUS ACCRUED INTEREST FROM APRIL 1 1993 TO THE REDEMPTION DATE OCT 1 1993 9309020040 930902 BUSINESS BRIEF SOUTHERN PACIFIC SEES OPERATING LOSS FOR 3RD QUARTER AS A RESULT OF FLOODS SAN FRANCISCO SOUTHERN PACIFIC RAIL CORP SAID IT EXPECTS TO REPORT A THIRDQUARTER OPERATING LOSS AS A RESULT OF THE MIDWEST FLOODS AND ANNOUNCED ADDITIONAL LAYOFFS AS PART OF A COSTREDUCTION PLAN THE COMPANY WHICH OPERATES A 15000MILE FREIGHT RAIL SYSTEM ESTIMATES THAT THE FLOODS REDUCED OPERATING EARNINGS BY 40 MILLION IN JULY AND AUGUST ALONE ADDITIONAL COSTS AND REVENUE SHORTFALLS ARE EXPECTED THIS MONTH BECAUSE OF CONTINUED FLOODING IN SOME AREAS AND DETOURS AND DELAYS PENDING TRACK REPAIRS THE COMPANY SAID IT WAS UNSURE WHAT IMPACT THE FLOODS WOULD HAVE ON RESULTS FOR SEPTEMBER BECAUSE IT HASN'T BEEN ABLE TO RESUME FULL SERVICE OVER CERTAIN ROUTES TO ST LOUIS AND CHICAGO SOUTHERN PACIFIC RAIL SAID THAT COSTS ASSOCIATED WITH THE FLOOD COULD CONTINUE INTO THE FOURTH QUARTER ESPECIALLY IF DELAYS DUE TO REPAIRS CONTINUE LONGER THAN THE COMPANY PROJECTS RESULTS FOR THE 1992 THIRD QUARTER WERE UNAVAILABLE THE COMPANY WENT PUBLIC IN AUGUST SEVERAL RAILROAD COMPANIES HAVE FORECAST LOWER REVENUES AND HIGHER COSTS AS A RESULT OF THIS SUMMER'S FLOODING IN THE MIDWEST THE OVERALL PHYSICAL DAMAGE IN THE RAILROAD INDUSTRY HAS BEEN ESTIMATED AT 100 MILLION TO 200 MILLION AS PART OF ITS PLAN TO LOWER EXPENSES SOUTHERN PACIFIC ALSO PLANS TO CUT AN ADDITIONAL 800 JOBS BY THE END OF 1993 THE COMPANY PREVIOUSLY ANNOUNCED IT WOULD CUT 1600 WORKERS BY THE END OF THE YEAR AN ADDITIONAL 1600 JOB CUTS WILL COME IN 1994 AS A RESULT THE COMPANY'S WORK FORCE IS EXPECTED TO FALL TO 18000 BY THE END OF 1994 FROM 22053 AS OF JUNE 30 IN ADDITION SOUTHERN PACIFIC RAIL PLANS THIS MONTH TO FURLOUGH ABOUT 950 TRACK MAINTENANCE EMPLOYEES UNTIL EARLY NEXT YEAR THE COMPANY ALSO SAID LONG BEACH CALIF CANCELED AN AGREEMENT TO BUY ITS 20MILE ALAMEDA CORRIDOR RAIL TRACK LOS ANGELES CANCELED A SIMILAR ACCORD IN AUGUST CITING TIME CONSTRAINTS ENVIRONMENTAL CONDITIONS AND OTHER FACTORS THE TWO CITIES HAD ORIGINALLY AGREED TO ACQUIRE THE TRACK FOR 260 MILLION SALE OF THE ALAMEDA CORRIDOR IS NOT NECESSARY TO MEET OUR NEARTERM CASH NEEDS BUT OTHER SALES WILL BE NECESSARY IN THE FIRST HALF OF 1994 ROBERT STARZEL THE COMPANY'S VICE CHAIRMAN SAID SOUTHERN PACIFIC NOTED IT MIGHT HAVE TO ALTER ITS CURRENT CREDIT AGREEMENTS WITH ITS BANKS BECAUSE CERTAIN FINANCIAL COVENANTS IN THE COMPANY'S REVOLVING CREDIT FACILITY CURRENTLY ARE DEPENDENT UPON SUBSTANTIAL ASSET SALES BEING COMPLETED BETWEEN NOW AND THE END OF THE YEAR THE COMPANY SAID IT WILL TRY TO LOWER COSTS BY RESTRUCTURING ITS OPERATING DEPARTMENT REDUCING THE NUMBER OF OPERATING REGIONS FROM FIVE TO TWO ADDITIONALLY SOUTHERN PACIFIC SAID KENNETH A MOORE 59YEAROLD VICE PRESIDENTOPERATIONS SUPPORT RETIRED HE WILL BE SUCCEEDED BY RALAND H BERRY 63 WHO HAS BEEN CHIEF MECHANICAL OFFICER AT THE COMPANY'S SOUTHERN PACIFIC LINES UNIT 9309020039 930902 BIG THREE WILL OPEN FACILITY TO RESEARCH RECYLING AUTO PARTS DETROIT THE BIG THREE AUTO MAKERS ARE OPENING A FACILITY THIS YEAR THAT WILL FOCUS ON DEVELOPING NEW RECYCLING TECHNIQUES FOR THE AUTOMOTIVE INDUSTRY AS MANY AS 500 VEHICLES A YEAR WILL BE DISASSEMBLED TO RESEARCH WAYS TO BOOST THE RECYCLABILITY OF USMADE CARS CURRENTLY ABOUT 75 OF THE TYPICAL DOMESTIC AUTOMOBILE IS RECYCLED WITH MOST OF THE RECYCLED MATERIAL BEING STEEL THE JOINT VENTURE FOCUSES ON THE REMAINING 25 KNOWN AS FLUFF SHREDDED MASSES OF GLASS PLASTIC AND RUBBER FOR WHICH RECYCLING METHODS HAVE YET TO BE DEVELOPED WITH A MODEST FIRSTYEAR BUDGET OF 1 MILLION THE OPERATION WILL BE HOUSED AT A 65000SQUAREFOOT BUILDING AT CHRYSLER CORP'S HIGHLAND PARK OFFICE COMPLEX NEAR DETROIT THE FACILITY WILL HAVE A STAFF OF 10 FULLTIME EMPLOYEES FROM CHRYSLER GENERAL MOTORS CORP AND FORD MOTOR CO AND WILL RECEIVE PARTTIME SUPPORT FROM AS MANY AS 50 OF THE AUTO MAKERS' RESEARCHERS AND ENGINEERS THE AUTO MAKERS SAID THEY EXPECT TO RAISE AS MUCH AS 500000 ANNUALLY FROM SELLING MATERIALS AND PARTS ACQUIRED THROUGH THE DISASSEMBLY OF VEHICLES THE PROCEEDS WILL BE REINVESTED INTO THE JOINT RECYCLING CENTER THE EFFORT IS THE LATEST TO COME OUT OF THE AUTO MAKERS' US COUNCIL FOR AUTOMOTIVE RESEARCH WHICH WAS FORMED LAST YEAR 9309020038 930902 THE NEW TAX LAW SEARCHING FOR SHELTER YOUR MONEY MATTERS UPPERBRACKET TAXPAYERS MUST GRAPPLE WITH STRATEGIES ON SHIFTING SECURITIES BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL UPPERBRACKET TAXPAYERS AND THEIR ADVISERS ARE SCRAMBLING TO FIGURE OUT HOW TO COPE WITH THE TAX LAW'S HIGHER RATES BUT THERE CAN BE PITFALLS IN RUSHING TO ACTION WITHOUT CAREFUL CONSIDERATION CONSIDER THE QUESTION OF WHAT TYPES OF SECURITIES STOCKS OR BONDS AFFLUENT INVESTORS SHOULD HOLD IN TAXDEFERRED RETIREMENT VEHICLES SUCH AS CORPORATE 401K PLANS ANNUITIES AND INDIVIDUAL RETIREMENT ACCOUNTS IN RESPONSE TO THE NEW LAW SOME ADVISERS ARE SUGGESTING THAT UPPERBRACKET INDIVIDUALS SHOULD MAKE THE MOST OF THEIR INVESTMENTS BY SHIFTING BONDS INTO TAXFAVORED PLANS WHILE HOLDING MOST OF THEIR STOCKS IN TAXABLE ACCOUNTS THE BOOST IN THE TOP TAX RATE ON BOND INTEREST AND OTHER ORDINARY INCOME TO 396 FROM 31 INDEED SEEMS TO ARGUE FOR SUCH A SHIFT BUYING BONDS IN A TAXDEFERRED PLAN AND STOCKS OUTSIDE WAS SMART ADVICE IN PREVIOUS PERIODS OF HIGH ORDINARYINCOME RATES AND MAKES SENSE AGAIN TODAY SAYS WILLIAM G BRENNAN A PARTNER AND FINANCIAL PLANNER WITH ACCOUNTANTS ERNST & YOUNG BUT A CLOSER LOOK SUGGESTS THAT AFFLUENT INVESTORS SHOULD THINK TWICE BEFORE REARRANGING THEIR HOLDINGS ALONG THESE LINES A REVIEW OF SOME HYPOTHETICAL PORTFOLIOS INDICATES THE PROPOSED STRATEGY MAY NOT SUCCEED INDEED THE OPPOSITE TACK MAY ACTUALLY WORK OUT BETTER AT THE VERY LEAST AFFLUENT INVESTORS SHOULD DO THE NUMBERS BEFORE ADJUSTING THEIR HOLDINGS ADVISES HUGH R LAMLE EXECUTIVE VICE PRESIDENT AT MONEY MANAGERS MD SASS INVESTORS SERVICES INC IN NEW YORK IN MANY CASES HE SAYS INVESTORS WILL COME OUT AHEAD IF THEY PUT THE SECURITIES WITH THE HIGHEST EXPECTED RETURNS TYPICALLY STOCKS IN THEIR TAXSHELTERED PLANS THE NEW TAX LAW CERTAINLY SEEMS TO PRESENT GOOD REASONS FOR UPPERBRACKET INVESTORS TO EMPHASIZE BONDS IN THEIR RETIREMENT PLANS AND STOCKS IN THEIR TAXABLE PERSONAL ACCOUNTS THE HIGHER ORDINARYINCOME TAX RATE MAKES IT MORE VALUABLE TO SHELTER BOND INTEREST FROM ANNUAL TAXATION IN CONTRAST LONGTERM CAPITAL GAINS ON STOCKS CONTINUE TO BE TAXED AT A MAXIMUM 28 MOREOVER THE WIDENED SPREAD BETWEEN ORDINARYINCOME AND CAPITALGAINS TAX RATES PRESENTS A DISINCENTIVE TO HOLD STOCKS IN TAXDEFERRED PLANS THAT'S BECAUSE ALL INCOME WITHDRAWN FROM THOSE PLANS EVEN IF DERIVED FROM CAPITAL GAINS IS TAXED AT THE HIGHER ORDINARYINCOME RATES BY BUYING STOCKS IN A RETIREMENT PLAN YOU ARE CONVERTING WHAT COULD BE CAPITAL GAINS INTO ORDINARY INCOME NOTES JOHN CAMMACK A FINANCIAL PLANNER WITH T ROWE PRICE ASSOCIATES INC IN BALTIMORE BUT WHETHER AN INVESTOR BENEFITS FROM THE BONDS INSIDE STOCKS OUTSIDE APPROACH DEPENDS NOT JUST ON TAX RATES BUT ON VARIABLES INCLUDING THE RETURNS PROVIDED BY VARIOUS SECURITIES THE TURNOVER RATE IN THE STOCK PORTFOLIO AND THE PERIOD OF TIME FOR WHICH MONEY REMAINS IN THE RETIREMENT PLAN AND THAT'S WHERE THE STRATEGY CAN BACKFIRE FOR INSTANCE THE ACCOMPANYING TABLE SHOWS ONE PROJECTION PREPARED BY MR LAMLE IN WHICH THE OPPOSITE APPROACH HOLDING STOCKS IN THE SHELTERED PLAN AND BONDS OUTSIDE PUTS CONSIDERABLY MORE MONEY IN THE INVESTOR'S HANDS AFTER A 20YEAR HOLDING PERIOD THE ANALYSIS PRESENTS AN UPPERBRACKET INVESTOR WITH TWO RADICALLY DIFFERENT CHOICES AT ONE EXTREME THE TAXABLE ACCOUNT IS INVESTED SOLELY IN STOCKS AND THE RETIREMENT PLAN IS SOLELY IN CORPORATE BONDS AT THE OTHER EXTREME THE ENTIRE TAXABLE PORTFOLIO IS IN BONDS IN THIS CASE TAXEXEMPT MUNICIPAL BONDS WHILE THE RETIREMENT PLAN HOLDS ONLY STOCKS THE CALCULATIONS ASSUME RETURNS OF 7 FOR CORPORATE BONDS 55 FOR MUNICIPALS AND 10 FOR STOCKS WITH 8 IN THE FORM OF CAPITAL GAINS AND 2 IN DIVIDENDS WHICH ARE TAXED AS ORDINARY INCOME THE BOTTOM LINE THE SECOND STRATEGY WHICH SHELTERS STOCKS NOT BONDS IN THE RETIREMENT PLAN WINS HANDS DOWN THE DIFFERENCE IS 51669 A GAIN OF 173 OVER THE ALTERNATIVE PORTFOLIO STRATEGY A SIMILAR ANALYSIS PREPARED BY HAROLD R EVENSKY A CORAL GABLES FLA FINANCIAL PLANNER YIELDS THE SAME CONCLUSION THIS STUDY ASSUMES THAT STOCKS CORPORATE BONDS AND MUNICIPALS GENERATED THE SAME AVERAGE RETURNS FOR THE NEXT 20 YEARS AS THEY DID DURING THE PAST TWO DECADES 95 FOR CORPORATE BONDS 77 FOR MUNICIPALS AND 113 FOR STOCKS MR EVENSKY'S RESULTS SHOW HOLDING STOCKS INSIDE A TAXDEFERRED PLAN AND BONDS OUTSIDE ENDED UP WITH 477423 AFTER 20 YEARS OR 171 MORE THAN THE 407670 PRODUCED BY THE OPPOSITE APPROACH AS WITH ANY PROJECTIONS HOWEVER CHANGING JUST ONE VARIABLE CAN ALTER THE RESULTS SIGNIFICANTLY IN MR LAMLE'S ANALYSIS FOR INSTANCE THE OUTCOME IS HEAVILY INFLUENCED BY THE TYPE OF BONDS PURCHASED UNDER THE TWO SCENARIOS AFFLUENT INVESTORS WHO BUY BONDS DIRECTLY USUALLY OPT FOR TAXEXEMPT BONDS IN THIS ANALYSIS MUNICIPAL BONDS AT 55 PRODUCED A FAR BETTER AFTERTAX RETURN THAN THE 7 CORPORATE BONDS HELD IN A TAXDEFERRED PLAN FOR 20 YEARS A WIDER INTERESTRATE SPREAD BETWEEN MUNICIPAL AND TAXABLEBOND RATES WOULD REDUCE THE ADVANTAGE OFFERED BY THE WINNING STRATEGY AN EVEN MORE SIGNIFICANT VARIABLE TO CONSIDER IS THE TURNOVER IN THE TAXABLE STOCK PORTFOLIO MR LAMLE'S ANALYSIS ASSUMES THAT THE CAPITAL GAINS IN THE PERSONAL STOCK PORTFOLIO ARE FULLY REALIZED AND TAXED EACH YEAR THAT'S A REASONABLE ASSUMPTION FOR THE AVERAGE STOCK MUTUAL FUND WHICH TURNS OVER ABOUT 90 OF ITS PORTFOLIO EACH YEAR SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO RESEARCH SERVICE BUT IT DOESN'T ACCOUNT FOR THE FACT THAT PEOPLE CAN ENJOY A CONSIDERABLE TAX DEFERRAL WHEN THEY BUY AND HOLD INDIVIDUAL STOCKS OUTSIDE A RETIREMENT PLAN IN THAT CASE CAPITAL GAINS AREN'T TAXED UNTIL THE SECURITIES ARE FINALLY SOLD WHICH GIVES A TAX BOOST TO PEOPLE WHO HANG ON TO THEIR SHARES FOR MANY YEARS AND THERE'S NO CAPITAL GAINS TAX AT ALL ON SHARES THAT PASS TO HEIRS AT DEATH HOW WOULD A BUYANDHOLD ORIENTATION AFFECT MR LAMLE'S RESULTS EVEN IF NO GAINS AT ALL WERE REALIZED IN THE PERSONAL PORTFOLIO UNTIL THE END OF 20 YEARS THE STRATEGY OF BUYING STOCKS IN THE RETIREMENT PLAN AND BONDS OUTSIDE WOULD STILL EKE OUT A NARROW WIN BUT FEW INVESTORS WOULD ACTUALLY LEAVE THEIR STOCK PORTFOLIO TOTALLY UNTOUCHED FOR 20 YEARS MR LAMLE SAYS IN THE REAL WORLD OF COURSE MOST INVESTORS HOLD A MIX OF STOCKS BONDS AND OTHER SECURITIES IN BOTH THEIR TAXABLE AND TAXDEFERRED PLANS THAT'S PROBABLY A WISE WAY TO GO FOR ONE THING ADVISERS STRESS THAT TAX CONCERNS SHOULD NEVER BE THE DRIVING FORCE IN INVESTMENT DECISIONS AS MR EVENSKY POINTS OUT SOME 401K PLANS OFFER VERY ATTRACTIVE FIXEDINCOME INVESTMENT OPTIONS AND ONLY MEDIOCRE STOCK FUNDS ARGUING FOR A HEAVIER FIXEDINCOME ORIENTATION WITHIN THOSE PLANS BUT INVESTORS CERTAINLY SHOULD CONSIDER THE TAX IMPLICATIONS IN DECIDING WHICH STOCKS OR STOCK MUTUAL FUNDS TO HOLD IN THEIR TAXABLE ACCOUNTS AND WHICH IN THEIR RETIREMENT PLANS FOR INSTANCE INDEX FUNDS WHICH AIM TO DUPLICATE THE PERFORMANCE OF A BROAD MARKET OR MARKET SECTOR CAN BE A GOOD CHOICE FOR TAXABLE ACCOUNTS THEY TEND NOT TO PAY OUT MUCH IN CAPITAL GAINSWHICH DEFERS TAXES ON THE OTHER HAND PEOPLE WHO ACTIVELY TRADE INDIVIDUAL STOCKS MAY WANT TO DO SO IN TAXSHELTERED ACCOUNTS WHILE GAINS ON STOCKS HELD FOR MORE THAN A YEAR ARE TAXED AT A MAXIMUM 28 SHORTTERM GAINS NOT OFFSET BY LOSSES ARE TAXED AT THE HIGHER ORDINARYINCOME RATES IN RESPONSE TO THE NEW TAX LAW SOME ADVISERS SAY AFFLUENT INVESTORS SHOULD EMPHASIZE STOCKS IN THEIR PERSONAL ACCOUNTS AND BONDS IN THEIR RETIREMENT PLANS BUT A LOOK AT TWO HYPOTHETICAL PORTFOLIOS SUGGESTS THE OPPOSITE STRATEGY NOTE THE ASSUMED ANNUAL RETURNS ARE 7 ON TAXABLE CORPORATE BONDS 55 ON TAXEXEMPT MUNICIPAL BONDS AND 10 ON STOCKS 2 DIVIDENDS 8 LONGTERM CAPITAL GAINS PERSONALLY HELD STOCKS ARE TAXED EACH YEAR AT 396 ON DIVIDENDS AND 28 ON CAPITAL GAINS 9309020037 930902 MARKETING & MEDIA NEWS CORP'S MURDOCH OUTLINES PLANS FOR TV PROGRAMMING ON GLOBAL BASIS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH CHAIRMAN OF NEWS CORP WHO NOW COMMANDS ACCESS TO MORE THAN TWOTHIRDS OF THE WORLD WITH THE COMPANY'S RECENT PURCHASE OF HONG KONGBASED STAR TELEVISION HOPES TO LAUNCH NEW WORLDWIDE PROGRAMMING CHANNELS COMBINED WITH NEWS CORP'S FOX BROADCASTING CO IN THE US AND ITS 50OWNED BRITISH SKY BROADCASTING THE RECENT ACQUISITION OF A CONTROLLING STAKE IN STAR TELEVISION HAS CHANGED THE LANDSCAPE FOR THIS COMPANY'S BROADCASTING STRATEGY MR MURDOCH SAID PUT SIMPLY IT REPRESENTS THE MOST EXCITING CHALLENGE IN BROADCASTING IN THE WORLD LAST MONTH NEWS CORP PAID 525 MILLION FOR A 636 INTEREST IN STAR TELEVISION ASIA'S DOMINANT SATELLITE BROADCASTER IN BROAD TERMS THE MEDIA BARON OUTLINED PLANS TO INTRODUCE A WIDE RANGE OF NEW TELEVISION CHANNELS INCLUDING AN OPEN UNIVERSITY AND EDUCATIONAL CHANNELS THE COMPANY'S AMBITIONS ALSO ENCOMPASS NEW CHANNELS WITH WORLDWIDE REACH AMONG THEM ARE AN ARTS CHANNEL AND OTHERS DEVOTED TO ORIGINAL MATERIAL NEWS CORP AND PARTNERS WILL AIM TO CREATE AND COVER GLOBAL EVENTS APPARENTLY ONE OF THE FIRST SUCH EVENTS WILL BE A GLOBAL SEARCH FOR THE WORLD'S BEST YOUNG OPERA SINGER THE AUSTRALIABORN MR MURDOCH SKETCHED HIS UPDATED VISION OF THE COMPANY'S ROLE IN MEDIA AND ENTERTAINMENT IN A SPEECH BILLED PARTLY AS A PRESENTATION ON MAJOR DEVELOPMENTS IN NEWS CORP'S GLOBAL MEDIA STRATEGY THE ADDRESS WAS DELIVERED IN LONDON LAST NIGHT AT A DINNER GATHERING OF BUSINESS GOVERNMENT MEDIA AND ENTERTAINMENT ELITE AND WAS TELECAST LIVE VIA SATELLITE TO ASSEMBLAGES IN NEW YORK LOS ANGELES AND SYDNEY AUSTRALIA WHERE NEWS CORP IS BASED MR MURDOCH OFFERED FEW DETAILS ON THE INTRODUCTIONS OF THE NEW CHANNELS THOUGH HE ANNOUNCED A FEW OTHER NEW INITIATIVES AND THE LONGANTICIPATED INTRODUCTION OF NEW SERVICES HE MOSTLY USED THE OCCASION TO EXPOUND UPON THE TECHNOLOGY REVOLUTION BUFFETING THE COMMUNICATIONS INDUSTRY AND THE BENEFITS TO SOCIETY HE SAW RESULTING FROM THE NEW TECHNOLOGY BEFORE THE ADDRESS RUMORS HAD FLOURISHED IN LONDON AND THE US THAT MR MURDOCH MIGHT FORMALLY ANNOUNCE THE LAUNCH OF A GLOBAL 24HOUR TVNEWSGATHERING AND BROADCASTING SERVICE TO RIVAL TURNER BROADCASTING CORP'S CNN BUT THE RUMORS PROVED TO HAVE ONLY A PARTIAL BASIS IN FACT MR MURDOCH ANNOUNCED THAT THE SKY NEWS A BSKYB SERVICE NOW AVAILABLE IN 33 EUROPEAN COUNTRIES WILL EXPAND TO SOUTHERN AFRICA ON OCT 1 BUT HE QUICKLY ADDED THAT PLANS ARE WELL ADVANCED TO TAKE THE CHANNEL OR A PARALLEL SERVICE TO ALL THE CONTINENTS THOUGH NEWS CORP WILL SEEK PARTNERS IN THAT EXPANSION AMONG OTHER ANNOUNCEMENTS MR MURDOCH ALSO SAID THAT NEWS CORP AND A GERMAN BROADCASTER IN JANUARY WILL INTRODUCE AN ADVANCED FORM OF PAY TELEVISION THAT EVENTUALLY WILL BE AVAILABLE TO 100 MILLION GERMANSPEAKING VIEWERS IN EUROPE IN ADDITION NEWS CORP THIS WEEK ACQUIRED DELPHI INTERNET SERVICES INC ONE OF THE TOP FIVE ONLINE DATA SERVICES IN THE US MR MURDOCH ALSO SAID THAT BSKYB WILL ADD A SECOND PAYTV SPORTS CHANNEL EARLY NEXT YEAR YESTERDAY THE BRITISH DIRECTBROADCAST SATELLITE OPERATION ALSO INTRODUCED THE LONGPLANNED SKY MULTICHANNELS A PACKAGE OF 14 TELEVISION CHANNELS THAT INCLUDE MUSIC MTV HOME SHOPPING QVC NEWS CHILDREN'S AND GENERAL ENTERTAINMENT PROGRAMMING 9309020036 930902 WHAT'S NEWS BUSINESS AND FINANCE THE BUDGET DEFICIT WILL FALL TO ABOUT 180 BILLION BY THE END OF CLINTON'S TERM UNDER THE NEW DEFICITREDUCTION LAW THE WHITE HOUSE PREDICTED THE WHITE HOUSE ALSO SAID THAT DESPITE THE DISAPPOINTING ECONOMY SO FAR THIS YEAR THE BASIC PROGNOSIS FOR A SLOW BUT STEADY EXPANSION WITH LOW INFLATION REMAINS UNCHANGED ADMINISTRATION ECONOMISTS EXPECT THE ECONOMY TO GROW BY 2 THIS YEAR DOWN FROM 31 FORECAST EARLY THIS YEAR MANUFACTURING CONTRACTED LAST MONTH FOR THE THIRD MONTH IN A ROW A PURCHASING MANAGERS INDEX SHOWED ACCORDING TO THE INDEX PRODUCTION AND NEW ORDERS DID IMPROVE A BIT BUT EMPLOYMENT CONTINUED TO CONTRACT THE WHITE HOUSE TASK FORCE FOR REINVENTING GOVERNMENT IS CONSIDERING A PLAN TO LET COMPANIES POLICE THEMSELVES ON HEALTH AND SAFETY IN LIEU OF THE CURRENT SYSTEM OF GOVERNMENT INSPECTIONS PART OF THE PLAN MAY CUT THE AGRICULTURE DEPARTMENT'S FOOD SAFETY AND INSPECTION SERVICE MANY PENSION FUNDS HAVEN'T REDUCED THEIR EXPECTED INVESTMENT RETURNS SINCE THE MID1980S DESPITE FORECASTS OF A HARSHER INVESTMENT CLIMATE IN THE 1990S AS A RESULT THE GAP BETWEEN THEIR PENSION PROMISES AND THEIR PENSION FUNDS HAS WIDENED AMERICAN EXPRESS'S LEHMAN BROTHERS INDICATED AN IPO IS ALL BUT CERTAIN WHEN IT MADE A 6 MILLION OFFER TO SENIOR EXECUTIVES TO SWAP PART OF THEIR 1993 COMPENSATION FOR PHANTOM STOCK THAT WILL LATER CONVERT TO REAL SHARES IF LEHMAN GOES PUBLIC AMR'S AMERICAN AIR ANNOUNCED ADDITIONAL LAYOFFS FROM ITS MANAGEMENT AND ADMINISTRATIVE STAFF AND SAID IT WAS SEEKING TO CUT OPERATING EXPENSES BY 12 TO 15 FOR 1994 DELTA AIR HIRED A CONSULTANT TO STUDY ITS TRANSATLANTIC OPERATIONS WHICH ARE IMPROVING BUT STILL AREN'T PROFITABLE HONDA SAID THE BASE PRICE OF ITS NEW ACCORD SEDAN WON'T CHANGE FROM THE CURRENT LEVEL AND THAT OTHER NEW ACCORD MODELS WILL BE PRICED ONLY UP TO 24 HIGHER THAN CURRENT LEVELS CLINTON PLANS TO BEGIN TALKS ON HIS HEALTHCARE PLAN WITH DEMOCRATIC AND REPUBLICAN MEMBERS OF CONGRESS NEXT WEEK BEFORE MAKING DECISIONS ON THE PLAN HE IS TO UNVEIL LATER THIS MONTH LATE PAYMENTS ON RESIDENTIAL MORTGAGES CREPT UP AGAIN IN THE SECOND QUARTER BOOSTED BY SHARP INCREASES IN DELINQUENCIES ON LOANS FOR LOWERINCOME HOUSEHOLDS BECAUSE OF CONTINUED ECONOMIC WEAKNESS CARL KARCHER IS MOUNTING A PLAN IN WHICH HE MAY TRY TO OUST DIRECTORS WHO REFUSE TO SUPPORT HIS AGENDA FOR FASTFOOD CHAIN CARL KARCHER ENTERPRISES STOCK INVESTORS IN EUROPE CASHED IN ON THE RECENT BROAD RUNUP IN PRICES FRANKFURT STOCKS TUMBLED 14 WHILE PARIS'S RECORDSETTING RALLY ENDED AS THE MARKET LOST 11 MADRID STOCKS FELL 26 AND STOCKHOLM SHARES 15 CHINA'S NEW AUSTERITY PROGRAM HAS STABILIZED THE YUAN CURBED RECKLESS LENDING AND DAMPED SPECULATION BUT IT HAS ALSO CREATED A CREDIT CRUNCH THAT HURTS INDUSTRIAL PRODUCTION AND SALES BONDS LEHMAN BROTHERS TREASURY INDEX 558379 UP 112 COMMODITIES OIL 1797 A BARREL OFF 32 CENTS DOW JONES FUTURES INDEX 12557 OFF 116 SPOT INDEX 12279 OFF 073 DOLLAR 10530 YEN UP 055 16593 MARKS OFF 00172 9309020035 930902 BUSINESS BRIEF GROUNDWATER TECHNOLOGY INC FIRSTQUARTER LOSS POSTED SOME OPERATIONS TO BE SHED GROUNDWATER TECHNOLOGY INC POSTING A 44 MILLION LOSS FOR ITS FISCAL FIRST QUARTER ENDED JULY 31 SAID IT PLANS TO SELL OR DISCONTINUE A NUMBER OF OPERATIONS THE NORWOOD MASS CONCERN HAD A LOSS OF 57 CENTS A SHARE AFTER A 5 MILLION RESTRUCTURING CHARGE AND A 275 MILLION CHARGE FOR DISCONTINUED OPERATIONS A YEAR EARLIER GROUNDWATER HAD NET INCOME OF 21 MILLION OR 26 CENTS A SHARE REVENUE FOR THE QUARTER WAS 401 MILLION COMPARED WITH 449 MILLION A YEAR EARLIER GROUNDWATER SAID IT WILL SHED ITS ENVIRONMENTAL EQUIPMENT MANUFACTURING UNIT COMBINE TWO ENVIRONMENTAL TESTING LABORATORIES IN CALIFORNIA AND DISPOSE OF OTHER UNPROFITABLE ASSETS THE COMPANY SAID THE CONSOLIDATION WILL RESULT IN GROUNDWATER FOCUSING ENTIRELY ON CONSULTING AND ACTUAL CLEANUP OF TAINTED SOIL AND GROUNDWATER THAT BUSINESS HAS BEEN HURT RECENTLY BY POOR MARKET CONDITIONS GROUNDWATER SAID 9309020034 930902 ABREAST OF THE MARKET STOCKS END MIXED AS CYCLICALS SLIP ON RENEWED ECONOMIC CONCERNS BY CAITLIN MOLLISON AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES ENDED MIXED AS WORRIES ABOUT THE ECONOMY HURT COMPANIES WHOSE FORTUNES ARE ESPECIALLY TIED TO THE BUSINESS CYCLE HIT BY SOME LIGHT COMPUTERGUIDED PROGRAM SELLING THE DOW JONES INDUSTRIAL AVERAGE FELL 615 TO 364510 STANDARD & POOR'S 500STOCK INDEX EASED 041 TO 46315 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ENDED UNCHANGED AT 25688 ECONOMICALLYSENSITIVE STOCKS EXPERIENCED THE BRUNT OF THE SELLING A MORGAN STANLEY INDEX OF THESE CYCLICAL STOCKS SLUMPED 112 TO 28240 WHILE AN INDEX OF CONSUMER STOCKS SLIPPED ONLY 011 TO 18912 ON THE NEW YORK STOCK EXCHANGE ADVANCERS LED DECLINERS 1019 TO 939 AND VOLUME ROSE TO 244960000 SHARES FROM 240970000 SHARES TUESDAY TRADERS EXPRESSED SURPRISE AT THE LEVEL OF INTEREST YESTERDAY BUT TIED IT PRIMARILY TO BEGINNINGOFTHEMONTH POSITIONING NASDAQ SHARES WERE UNSTOPPABLE AGAIN AND THE NASDAQ COMPOSITE INDEX HIT A CLOSING RECORD FOR THE THIRD CONSECUTIVE SESSION THE BAROMETER JUMPED 331 TO 74615 GAINS IN MICROSOFT WHICH ROSE 1 5/8 TO 76 3/4 AND IN CHIRON UP 2 1/4 TO 66 ON A BULLISH PROFILE IN THE WALL STREET JOURNAL POWERED NASDAQ PRICES HIGHER BUT BIG BOARD SHARES CAME UNDER SOME EARLY PRESSURE FROM WEAKER LONDON FRANKFURT AND PARIS BOND PRICES SEESAWED YESTERDAY WITH THE LONG BOND RISING 1/8 POINT THE YIELD FELL TO 609 THE WHITE HOUSE SCALED BACK ITS ESTIMATE OF ECONOMIC GROWTH TO 2 FOR THIS YEAR FROM 31 ALSO THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS SAID ITS INDEX FOR AUGUST DROPPED TO 493 FROM 495 IN JULY A READING BELOW 50 IS THOUGHT TO SIGNAL A DECLINE IN MANUFACTURING ECONOMISTS HAD EXPECTED THE INDEX TO BE 50 BORDEN THE DAY'S MOST ACTIVE ISSUE ROSE 1 1/4 TO 18 THE JOURNAL REPORTED THAT THE FOOD COMPANY IS A PRIME CANDIDATE TO TRY AND TAKE ADVANTAGE OF A NEW RULE FOUND IN THE TAX LEGISLATION THAT COULD SPUR SOME FIRMS TO RESTRUCTURE BY SELLING UNWANTED ASSETS BORDEN BEGAN PROMISING AN OVERHAUL IN JULY AFTER REPORTING A 65 DROP IN SECONDQUARTER EARNINGS AND SOME THINK IT IS RIPE FOR A RESTRUCTURING THE DOW JONES TRANSPORTATION AVERAGE RETREATED 1475 TO 165078 GIVING BACK ALMOST ALL THE GAINS MADE TUESDAY UAL FELL 2 1/4 TO 146 1/4 AND DELTA AIR LINES WAS DOWN 1 3/8 TO 52 5/8 DELTA SAID TRENDS IN ITS UNPROFITABLE TRANSATLANTIC OPERATIONS IMPROVED DRAMATICALLY THIS SUMMER GENERAL DYNAMICS JUMPED 2 TO 96 7/8 THE STOCK ROSE ON NEWS THAT DEFENSE SECRETARY LES ASPIN SUPPORTS THE CONSTRUCTION OF A THIRD SEAWOLF NUCLEAR ATTACK SUBMARINE THE SUBMARINE WHICH IS MADE BY GENERAL DYNAMICS STILL REQUIRES CONGRESSIONAL APPROVAL LITTON INDUSTRIES ROSE 1/2 TO 67 AFTER WINNING A PATENT INFRINGEMENT AWARD AGAINST HONEYWELL WHICH FELL 3 3/8 TO 35 1/2 HONEYWELL STRESSED THAT THE JURY'S FINDINGS AREN'T THE END OF THE ROAD BECAUSE THE JUDGE STILL MUST FORMALLY ENTER A JUDGMENT A DISAPPOINTING THIRDQUARTER OUTLOOK SENT VF CORP'S SHARE PRICE DOWN 3 3/4 TO 42 1/4 THE SPORTSWEAR DESIGNER SAID IT EXPECTS EARNINGS TO FALL ABOUT 10 FROM LAST YEAR'S 129 A SHARE VF CITED UNUSUAL AND RECURRING CHARGES PILLOWTEX A DALLAS PILLOW DESIGNER JUMPED 7/8 TO 13 ON NEWS THAT IT HAS SIGNED AN AGREEMENT TO ACQUIRE THE BUSINESS OF TENNESSEE WOOLEN MILLS A LEBANON TENN BLANKET MAKER FOR ABOUT 123 MILLION SEPARATELY PILLOWTEX SAID IT HAS ACQUIRED THROUGH A NEWLY FORMED SUBSIDIARY SUBSTANTIALLY ALL THE ASSETS OF MANETTA MILLS A MONROE NC COTTON BLANKET MAKER FOR ABOUT 71 MILLION GLAXO HOLDINGS WAS THE SECOND MOST ACTIVE ISSUE ON VOLUME OF ABOUT THREE MILLION SHARES NEARLY DOUBLE ITS AVERAGE DAILY LEVEL THE PHARMACEUTICALS COMPANY'S AMERICAN DEPOSITARY RECEIPTS GAINED 1/2 TO 18 3/8 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 037 TO 45897 THERE WERE 293 DECLINERS AND 284 ADVANCERS 9309020033 930902 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH NEW CALLING CARD TO PERMIT CUSTOMERS TO PICK NUMBERS AMERICAN TELEPHONE & TELEGRAPH CO SAID IT INTRODUCED CALLING CARDS FOR WHICH USERS CAN CREATE THEIR OWN CARD NUMBERS THE PERSONAL CHOICE CALLING CARD AVAILABLE FREE TO BUSINESS AND RESIDENTIAL CUSTOMERS IS DESIGNED TO BE EASIER AND MORE CONVENIENT TO USE CALLING CARD USERS CAN CHOOSE THE LETTERS OR NUMBERS THAT MAKE THE MOST SENSE TO THEM THEIR BIRTHDAYS THEIR PHONE NUMBERS OR EVEN THEIR NAMES THE NEW YORKBASED TELECOMMUNICATIONS COMPANY SAID USERS CAN SELECT SEVEN TO NINE NUMBERS OR LETTERS PLUS A FOURDIGIT PERSONAL IDENTIFICATION NUMBER OR PIN FOR ADDED SECURITY CARDS CAN BE PRINTED WITHOUT CUSTOMER'S PIN AT&T SAID THAT NEARLY 40 MILLION PEOPLE CARRY ITS EXISTING CALLING CARDS 9309020032 930902 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 COMCAST CORP 250 MILLION OF 337555 STEPUP CONVERTIBLE SUBORDINATED DEBENTURES CALLED SIRENS OR STEPUP INCOME REDEEMABLE EQUITY NOTES PRICED THROUGH UNDERWRITER FIRST BOSTON CORP THE DEBENTURES DUE 2005 WILL BEAR INTEREST AT 3375 A YEAR FROM THE DATE OF ISSUANCE UNTIL SEPT 9 1997 AND 55 A YEAR THEREAFTER UNTIL MATURITY OR EARLIER REDEMPTION ACCORDING TO THE COMPANY THE DEBENTURES MAY BE CONVERTED INTO SHARES OF CLASS A SPECIAL COMMON STOCK AT THE OPTION OF THE HOLDER AT ANY TIME AT 3675 THE DEBENTURES ARE REDEEMABLE IN WHOLE OR IN PART ON OR AFTER SEPT 9 1997 FIRST BOSTON HAS BEEN GRANTED AN OVERALLOTMENT OPTION TO PURCHASE UP TO AN ADDITIONAL 25 MILLION FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF STEPUP NOTES DUE SEPT 21 2000 PRICED AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE COUPON INCREASES IN SEPTEMBER 1996 TO 55 AND THEN TO 66 IN SEPTEMBER 1998 THE NOTES WERE PRICED AT A SPREAD OF 38 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF DEBENTURES DUE SEPT 9 1998 PRICED AT PAR TO YIELD 425 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE SEPT 9 1998 PRICED AT PAR TO YIELD 495 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE SEPT 8 2008 PRICED AT PAR TO YIELD 62 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORTHERN TELECOM INC 400 MILLION TWOPART ISSUE OF NOTES PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF NOTES DUE SEPT 1 2003 WAS PRICED AS 6S AT 99509 TO YIELD 6066 THE NOTES WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF NOTES DUE SEPT 1 2023 WAS PRICED AS 6875S AT 9871 TO YIELD 6978 THE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP PNC FUNDING CORP 250 MILLION OF SUBORDINATED NOTES DUE SEPT 1 2003 PRICED AS 6125S AT 99769 TO YIELD 6156 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC PNC FUNDING IS A UNIT OF PNC FINANCIAL CORP FEDERAL HOME LOAN MORTGAGE CORP 7167 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1600 IS BACKED BY THE AGENCY'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE MATURITY OF 170 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 575 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1599 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1598 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1595 IS BACKED BY THE AGENCY'S 20YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 237 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY HARRIS UPHAM & CO THE OFFERING SERIES 1596 IS BACKED BY THE AGENCY'S 20YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 239 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1597 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7932 AND WEIGHTED AVERAGE MATURITY OF 355 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 550 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993196 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993195 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 355 MONTHS EXPORTIMPORT BANK OF JAPAN JAPANESE AGENCY 75 BILLION YEN OF 4375 EUROBONDS DUE OCT 1 2003 AT ISSUE AND REOFFER PRICE 9973 VIA NOMURA INTERNATIONAL PLC BONDS YIELD 4409 GUARANTOR GOVERNMENT OF JAPAN FEES 0325 POINT HEMARAJ LAND & DEVELOPMENT CO THAILAND 60 MILLION OF 35 CONVERTIBLE EUROBONDS DUE SEPT 9 2003 AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT CONVERSION PRICE 186 THAI BAHT A PREMIUM OF 1182 AT FIXED FOREIGNEXCHANGE RATE OF 25203 BAHT PER DOLLAR CONVERSION PERIOD FROM DEC 10 TO MATURITY CALLABLE FROM SEPT 9 1996 TO SEPT 9 1999 AT PRICE TO BE FIXED TO YIELD 64 SUBJECT TO PREVAILING SHARE PRICE BEING AT LEAST 140 OF CONVERSION PRICE THEREAFTER BONDS CALLABLE AT PAR PUT OPTION EXERCISABLE ON SEPT 9 1998 AT PRICE 1165 BAHT TO PROVIDE BOND YIELD OF 64 FEES 275 POINTS QUEBEC CANADIAN MUNICIPALITY 56 MILLION CANADIAN DOLLARS OF EUROBONDS IN TWO TRANCHES VIA BANQUE INTERNATIONALE A LUXEMBOURG SA C35 MILLION OF 6875 NOTES DUE OCT 13 1998 AT ISSUE PRICE 10205 TO YIELD 683 AFTER DEDUCTING FULL FEES OF 1875 POINTS A SPREAD OF 55 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND C21 MILLION OF 7625 NOTES DUE OCT 13 2003 AT ISSUE PRICE 10195 TO YIELD 763 AFTER DEDUCTING FULL FEES OF TWO POINTS A SPREAD OF 74 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND RABOBANK NETHERLANDS 500 BILLION ITALIAN LIRE OF ZEROCOUPON EUROBONDS DUE OCT 15 2003 AT ISSUE PRICE 46426 VIA IMI BANK LUXEMBOURG SA BONDS YIELD 827 AFTER DEDUCTING FULL FEES OF 125 POINTS ISSUE LAUNCHED OFF MEDIUMTERMNOTE PROGRAM 9309020031 930902 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN CAMPUS COMPUTERS GROW MORE SPECIALIZED AND OFTEN MORE COSTLY WORKHORSE PCS BLINK INTO OLD AGE AS NEWER AND SMALLER MODELS TAKE HOLD VIRGINIA TECH IN BLACKSBURG REQUIRES ALL 1200 FRESHMAN ENGINEERING STUDENTS TO OWN MULTIMEDIA COMPUTER SYSTEMS THAT COST 2800 EACH AS MUCH AS 800 MORE THAN LAST YEAR'S THE UNIVERSITY OF MINNESOTA AT CROOKSTON ADDS NOTEBOOK PCS THAT STUDENTS GET TO USE FOR THEIR TECH FEE THE COST OF A PC IS BUILT INTO TUITION AT CLARKSON UNIVERSITY IN POTSDAM NY COMPUTERRELATED FEES ARE COMMON AND SO IS FINANCIAL AID NEXT SMITH COLLEGE IN MASSACHUSETTS AND OTHERS CONSIDER COMPUTERS THAT CAN READ HANDWRITING ALSO LIKELY MORE MULTIMEDIA COMPUTERS AND TAILORED SOFTWARE STILL NOT ALL SCHOOLS INSIST STUDENTS BUY PCS EVEN THE HIGHTECH CARNEGIE MELLON UNIVERSITY IN PITTSBURGH REFRAINS FROM A PCMANDATE SINCE THE EXTRA 2000 COULD BE A FINANCIAL BURDEN AND THE UNIVERSITY OF MICHIGAN IN ANN ARBOR WARNS IT ISN'T CERTAIN THAT A FRESHMAN'S PC WILL BE VIABLE FOR FOUR YEARS AT THE UNIVERSITY OF CALIFORNIA IN BERKELEY STUDENTS DISCUSS A SPEECH IN CLASS BY TYPING INTO A SYSTEM SEEN BY ALL SELLING THE SYSTEMS CAN BE A HEADACHE THE COLUMBIA BUSINESS SCHOOL LEARNS WHEN THE NEW YORK CITY SCHOOL MADE NOTEBOOK PCS MANDATORY IN JANUARY IT OPTED FOR MACHINES BY COMPAQ WHICH IS RUN BY ALUMNUS BENJAMIN ROSEN BUT COMPAQ DIDN'T HAVE A FULL RETAIL NETWORK OR ACADEMIC PLAN UP AND RUNNING AT THE TIME OF THE PILOT SO COLUMBIA BECAME THE DEALERBUYING FROM COMPAQ AND SELLING TO STUDENTS COMPUTER SALES ISN'T THE BUSINESS WE WANT TO BE IN SAYS JAMES HAGGARD COLUMBIA'S DIRECTOR OF INFORMATION TECHNOLOGY PROBLEMS VOLATILE PRICING STORAGE AND CONTINUITY MR HAGGARD SAYS HIS OFFICE WAS BURIED IN BOXES AND RIGMAROLE FOR THIS FALL THE SCHOOL ASKED VENDORS TO PROVIDE THE FULL SERVICE FINALISTS WERE COMPAQ AND IBM WITH SIMILAR PRICES AND PRODUCTS THE SCHOOL CHOSE IBM MAINLY BECAUSE IT HAD A SYSTEM FOR SELLING THEM THROUGH THE CAMPUS BOOKSTORE OF HIS COMPANY'S EXPERIENCE A COMPAQ OFFICIAL NOTES IT WAS A PILOT PROGRAM AND WE LEARNED A LOT PRO FOOTBALL HOLDS THE LINE ON TICKET PRICES BUT SNACKS ARE ANOTHER MATTER NATIONAL FOOTBALL LEAGUE TEAMS HAVE RAISED TICKET PRICES BY 35 THIS SEASON JUST HALF OF LAST YEAR'S 7 INCREASE SAYS TEAM MARKETING REPORT A CHICAGO NEWSLETTER BUT THE TOTAL COST OF TAKING A FAMILY OF FOUR TO A GAME ROSE 48 TO 17333 THE FAMILY TOTAL INCLUDES TICKETS PARKING FOUR HOT DOGS FOUR SOFT DRINKS TWO DRAFT BEERS TWO GAME PROGRAMS AND TWO SOUVENIR CAPS THE CONCESSIONS ARE REALLY IN A GROWTH PERIOD SAYS THE REPORT'S NOAH LIBERMAN STADIUM FOOD CONTINUES TO GET MORE SOPHISTICATED WITH TRENDY UPSCALE ADDITIONS TO MENUS THE HUBERT HUMPHREY METRODOME IN MINNEAPOLIS NOW SELLS GREEN SALADS AND A FRUIT CUP EACH SERVED IN A WHOLEWHEAT WAFFLE SHELL THE IDEA IS TO PROVIDE AN ALTERNATIVE TO THE TYPICAL BALLPARK FARE SAYS BOBBI LINDER CONCESSION MANAGER SHE NOTES THAT A SALAD FETCHES 4 TWICE THE PRICE OF A STADIUM HOT DOG THE METRODOME OFFERS FANS A TRAY OF VEGGIES AND DIP OR A TRAY OF NACHOS AND CHEESE FOR 275 INDUSTRIAL INFLATION RATES ON BUILDINGS AND MACHINERY SLID IN THE FIRST HALF SAYS KEMPER NATIONAL INSURANCE COS OF LONG GROVE ILL THE RATE WHICH GAUGES REPLACEMENT COSTS DIPPED TO 132 ON BUILDINGS FROM 160 SIX MONTHS EARLIER THE RATE ON MACHINERY FELL TO 098 FROM 135 PAY NOW DRINK LATER OLD BUSHMILLS DISTILLERY IN NORTHERN IRELAND FLOGS CASKS OF 1975VINTAGE MALT WHISKEY AT 5000 EACH FOR IMBIBING IN LATE 1999IN TIME FOR TOASTS TO THE MILLENNIUM THE WHISKEY MAKER SAYS A CASK YIELDS 228 750MILLILITER BOTTLES THE CARRIAGEPAINTING ARTS OF TWO 19TH CENTURY BROTHERS WILL BE PRESERVED AT THE MUSEUMS AT STONY BROOK NY THANKS LARGELY TO AN 18000 STATE GRANT DESIGNS TRANSFERPATTERNS AND OTHER WORK BY JEAN PIERRE AND FRED DREESE ADD TO THE MUSEUMS' CARRIAGE REFERENCE LIBRARY LOANS GAIN GROUND AS A WAY OF DOING GOOD AND CONSERVING CASH SOME NATIONAL PROGRAMS ENCOURAGE BIG FOUNDATIONS TO DO WHAT LITTLE CHARITIES HAVE BEEN DOING FOR AGES LEND NOT GIVE MONEY TO NEIGHBORHOOD FOLKS IN NEED THE NATIONAL COMMUNITY DEVELOPMENT INITIATIVE A LOANANDGRANT PROGRAM WINS SUPPORT FROM BIG AND SMALL GROUPS ALIKE SAYS JUDITH SAMUELSON OF THE FORD FOUNDATION FORD A PIONEER IN SUCH PROGRAMRELATED INVESTMENTS NOW FUNNELS SOME 15 MILLION A YEAR TO LOANS IN SUCH COMMUNITY PROJECTS MEANWHILE SOME FORPROFIT LENDERS EYE SIMILAR PROJECTS THAT ALLOW THEM TO TAKE ADVANTAGE OF LOWINCOMEHOUSING TAX CREDITS OR TO MEET OBLIGATIONS UNDER THE US ANTIREDLINING LAW THE FEDERAL PROGRAMS MAY MEAN MORE COMPETITION FROM BANKS FOR FUNDS SAYS PAUL GROGAN HEAD OF LOCAL INITIATIVES SUPPORT CORP IN NEW YORK CITY LAST YEAR THE NONPROFIT PLACED 384 MILLION FROM FIRMS AND FOUNDATIONS INTO COMMUNITYDEVELOPMENT PROJECTS VIA LOANS AND GRANTS THE JEWISH ANTIHUNGER GROUP MAZON HITS ON A SIMPLE STRATEGY IT INVESTS ITS RESERVE FUNDS IN CDS AT BANKS THAT MAKE INNERCITY LOANS BRIEFS NEO WHAT JAPAN'S NOMURA SECURITIES CALLS ITS GLOSSY ENGLISHLANGUAGE QUARTERLY A NEO ECONOCULTURAL MAGAZINE A SIGN IN BEN & BILL'S CHOCOLATE EMPORIUM IN BAR HARBOR MAINE BOASTS LOBSTER ICE CREAM IS BACK 9309020029 930902 WORLD MARKETS STOCKS DECLINE IN TOKYO AND ACROSS EUROPE AS PROFITTAKING HALTS RECENT STRONG GAINS A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO DROPPED WEDNESDAY AS PROFITTAKING ENDED SIX CONSECUTIVE SESSIONS OF GAINS LONDON SHARES WEAKENED IN ANTICIPATION OF EARNINGS REPORTS BY BRITISH COMPANIES ACROSS EUROPE INVESTORS CASHED IN ON THE RECENT BROAD RUNUP IN PRICES FRANKFURT STOCKS TUMBLED 14 HALTING A WINNING STREAK OF THREE SESSIONS PARIS'S ECORDSETTING RALLY ENDED AS THE MARKET LOST 11 MADRID PRICES PLUMMETED 26 STOCKHOLM EQUITIES SKIDDED 15 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11275 DOWN 027 REFLECTING LOWER AMERICAN AND ASIA/PACIFIC MARKETS AND HIGHER EUROPEAN MARKETS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 19526 UP 316 OR 165 WITH MULTIPURPOSE HOLDINGS OF MALAYSIA POSTING A 43 GAIN IN ITS LOCAL CURRENCY RAILROAD STOCKS TRAILED AT 12220 DOWN 205 OR 165 WITH SEIBU RAILWAY OF JAPAN SLIDING 34 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 11391 POINTS TUESDAY DECLINED 7330 TO 2095330 ON THURSDAY THE NIKKEI ROSE 2390 POINTS TO CLOSE THE MORNING SESSION AT 2097720 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 360 MILLION SHARES DOWN FROM 3773 MILLION SHARES A DAY EARLIER LOSERS TOPPED GAINERS 575422 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1546 POINTS TUESDAY FELL 368 TO 168941 DESPITE THE DECLINES THE MARKET PROVED RESILIENT AS ANOTHER STRONG DAY FOR JAPANESE BONDS REINFORCED EXPECTATIONS FOR A CUT SOON IN JAPAN'S DISCOUNT RATE AND THE DOLLAR'S REBOUND AGAINST THE JAPANESE YEN HELPED EXPORTERS' ISSUES YET THIS ALSO ILLUSTRATED THAT ECONOMIC FUNDAMENTALS WEREN'T DRIVING THE MARKET PRICES CLIMBED IN THE FINAL HALFHOUR OF TRADING AS INVESTMENT TRUSTS AND OTHER INVESTORS BOUGHT FUTURES CONTRACTS SETTING OFF INDEXLINKED ARBITRAGE BUYING SHARES THAT STAND TO GAIN FROM DEREGULATORY STEPS OUTLINED TUESDAY BY THE JAPANESE GOVERNMENT ATTRACTED STRONG BUYING INTEREST THOUGH PROFITTAKING LIMITED PRICE GAINS AMONG THE WINNERS WERE TRADING HOUSES EXPORTERS AND PRODUCERS OF HIGHTECHNOLOGY PRODUCTS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 149 POINTS TO 30851 THOUGH THIS MARKED A REBOUND FROM A LOSS TWICE AS DEEP AT THE DAY'S LOW OF 30703 THE FT 30STOCK INDEX FELL 111 POINTS TO 24031 VOLUME WAS 6122 MILLION SHARES UP FROM 4761 MILLION SHARES A DAY EARLIER ABOUT 40 COMPANIES ARE SCHEDULED TO POST SIXMONTH FINANCIAL DATA THIS MONTH INCLUDING EIGHT TODAY MEANWHILE THE MARKET WHICH HAS BEEN HOPING FOR IMPROVED CORPORATE EARNINGS WAS UNNERVED PARTLY BY ONE WARNING OF POOR PROFIT AND ONE REPORT OF EARNINGS THAT WERE WORSE THAN EXPECTED A WEAK OPENING ON WALL STREET ALSO HELPED PUSH LONDON SHARES TO LOWS IN MIDAFTERNOON DEALINGS BUT A REBOUND IN THE US HELPED LONDON'S LATE RECOVERY IN FRANKFURT THE DAX 30STOCK INDEX RETREATED 2631 POINTS TO 191858 WHICH ALSO WAS THE INTRADAY LOW THE SELLING WAVE FOLLOWED A RECENT RALLY TO TUESDAY'S THREEYEAR HIGH AND INVESTORS DECIDED TO TAKE PROFITS OF THE DAX STOCKS 29 FELL AND ONE FINISHED UNCHANGED INVESTOR INTEREST IN DEALINGS WAS DESCRIBED AS LOW THE MACHINERY SECTOR WAS AMONG THOSE HIT HARDEST BECAUSE OF SLUMPING EARNING REPORTS IN PARIS STOCKS TOOK A BREATHER FOLLOWING FOUR RECORDBREAKING SESSIONS IN A ROW THE CAC 40 INDEX SANK 2456 POINTS TO 219193 BUT THE MARKET IS STILL UP 18 FOR THIS YEAR AFTER THE RECENT RALLY PROFITTAKERS EMERGED AT YESTERDAY'S OPENING AND DIDN'T LET UP IN LINE WITH THE LOWER PRICES ON MANY EUROPEAN MARKETS AMSTERDAM SHARES DROPPED BROADLY ON PROFITTAKING AND A WEAKER DOLLAR IN MILAN PRICES DECLINED AS EXPECTED AS MANY INVESTORS BELIEVED THE MARKET'S SPEED HAS BEEN TOO FAST RECENTLY AND ANTICIPATED FURTHER DROPS AMID IMPATIENCE ABOUT PROMISED INTERESTRATE CUTS IN MADRID SHARES PLUNGED CLOSING NEAR THE DAY'S LOWS FOLLOWING A WIDE SWEEP OF PROFITTAKING IN STOCKHOLM SHARES SLUMPED ON PROFITTAKING RISING SWEDISH INTEREST RATES AND WEAK PERFORMANCES ON THE CONTINENT'S MAJOR BOURSES IN ZURICH BROADBASED PROFITTAKING ALSO LEFT STOCKS LOWER KNOCKING DOWN EARLY INCREASES BUT BRUSSELS SHARES BUCKED THE EUROPEAN TREND AGAIN CLOSING MOSTLY HIGHER ON STRONG FOREIGN BUYING INTEREST IN SYDNEY THE MARKET'S WINNING STRING CONTINUED AND STOCKS YET AGAIN SURGED TO A NEW SIXYEAR HIGH PUSHED UP BY STRONG CORPORATE PROFIT RESULTS AND NEWS OF AN AUSTRALIAN TAKEOVER BID SINGAPORE SHARES ALSO CLIMBED TO A RECORD BUTTRESSED BY OVERSEAS BUYING AND GAINS IN BLUE CHIPS BUT IN HONG KONG EQUITIES LOST GROUND AFTER SEESAW TRADING AS A MIDDAY REBOUND WAS WIPED OUT BY LATE SELLING TAIPEI STOCKS' DECLINES CONTINUED AND THE MARKET FINISHED AT THE LOWEST POINT SINCE MIDFEBRUARY DRIVEN DOWN BY SPECULATIVE SELLING FOLLOWING THE PREVIOUS DAY'S SHARP DECLINE IN MANILA SHARES SURGED INTO RECORD TERRITORY FUELED BY PHONE STOCK STRENGTH AND IN SEOUL NEWS REPORTS OF POSSIBLE IMPROVED RELATIONS BETWEEN NORTH KOREA AND SOUTH KOREA SENT SHARE PRICES SOARING AS INVESTMENT AND TRUST COMPANIES BOUGHT ISSUES WITH LOW PRICE/EARNINGS RATIOS AND IN BANGKOK PRICES ROARED UP 16 ON STRONG VOLUME AS FOREIGN AND LOCAL INVESTORS BOUGHT BANK STOCKS THE BANKING SECTOR INDEX ADVANCED 26 AMONG CORPORATE DEVELOPMENTS IN PARIS EURO DISNEY LOST 1 FRENCH FRANC OR 17 TO 5895 FRANCS 1006 AFTER FALLING AS MUCH AS 35 DURING THE DAY THE UNPROFITABLE THEMEPARK UNIT OF WALT DISNEY OF THE US IS CONSIDERING RAISING FUNDS THROUGH A RIGHTS ISSUE ACCORDING TO A EUROPEAN NEWS REPORT WALT DISNEY PREVIOUSLY SAID IT WAS CONSIDERING A CASH INFUSION OR OUTSIDE PARTNERSHIP TO HELP EURO DISNEY SITUATED NEAR PARIS 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 9309020028 930902 RP SCHERER GERMAN UNIT TROY MICH RP SCHERER CORP SAID ITS GERMAN SUBSIDIARY RP SCHERER GMBH HAS ACQUIRED FROM GAYOSO WELLCOME SA EQUIPMENT AND RIGHTS TO MARKET GAYOSO'S DRUG CAPSULES IN SPAIN AND PORTUGAL TERMS WEREN'T DISCLOSED GAYOSO IS A UNIT OF WELLCOME PLC RP SCHERER DEVELOPS DRUGDELIVERY SYSTEMS 9309020027 930902 BUSINESS BRIEF FEDERAL INDUSTRIES LTD DISTRIBUTOR PLANS OFFERING OF SEVEN MILLION A SHARES FEDERAL INDUSTRIES LTD SAID IT AGREED TO SELL SEVEN MILLION CLASS A COMMON SHARES TO A GROUP OF UNDERWRITERS FOR TOTAL PROCEEDS OF 466 MILLION CANADIAN DOLLARS US353 MILLION THE SHARES WILL BE OFFERED TO THE PUBLIC BY THE UNDERWRITERS LED BY RBC DOMINION SECURITIES INC OF TORONTO AT A PRICE OF C665 A SHARE THE UNDERWRITERS HAVE AN OPTION TO ACQUIRE AN ADDITIONAL 700000 COMMON SHARES AT THE SAME PRICE FEDERAL INDUSTRIES PLANS TO USE PROCEEDS OF THE ISSUE WHICH IS EXPECTED TO CLOSE SEPT 22 FOR GENERAL CORPORATE PURPOSES BASED IN WINNIPEG MANITOBA FEDERAL IS A METALS PRODUCTS DISTRIBUTOR AND TRANSPORTATION CONCERN AT LAST REPORT THE COMPANY HAD 332 MILLION CLASS A SHARES OUTSTANDING IN TRADING YESTERDAY ON THE TORONTO CANADIAN CENTS 9309020026 930902 INTERNATIONAL BEIJING'S TIGHTMONEY DRIVE TAKES TOLL DESPITE STABILIZED YUAN BIG MANUFACTURERS ARE HURTING BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL SHENYANG CHINA FOR JINBEI GM AUTOMOTIVE CO THE ROAD AHEAD IS GETTING BUMPIER BY THE DAY SALES OF LIGHT TRUCKS MADE AT THE JOINT VENTURE 30OWNED BY GENERAL MOTORS CORP HAVE SLUMPED 50 IN THE PAST TWO MONTHS INVENTORIES ARE PILING UP AS JINBEI GM SCRAMBLES TO CUT PRODUCTION UNABLE TO OBTAIN ADDITIONAL BANK CREDITS THE COMPANY TURNED TO ITS MAJORITY SHAREHOLDER JINBEI AUTOMOTIVE CO SHENYANG'S BIGGEST INDUSTRIAL COMPANY ONLY TO FIND THAT IT TOO IS STRAPPED FOR CASH ZHAO XIYOU CHAIRMAN AND CHIEF EXECUTIVE OF JINBEI AUTOMOTIVE BLAMES BEIJING'S ANTIINFLATION DRIVE ALL THE FISH DOWNSTREAM WILL DIE IF BEIJING CONTINUES TO SHUT ITS FLOODGATE TIGHTLY HE GRUMBLES VICE PREMIER ZHU RONGJI CHINA'S IRONFISTED ECONOMIC CHIEF BOASTS THAT HE IS APPLYING THE BRAKES ONLY LIGHTLY UNDER HIS AUSTERITY PROGRAM THE IDEA IS TO ATTACK INFLATION BY STAMPING OUT SPECULATION IN PROPERTY AND STOCK MARKETS WHILE SPARING VITAL MANUFACTURING INDUSTRIES BUT A VISIT TO SHENYANG THE CAPITAL OF THE NORTHEAST PROVINCE OF LIAONING SHOWS THAT BEIJING'S TIGHTMONEY POLICIES ARE TAKING A HEAVY TOLL ON BIG MANUFACTURERS INCLUDING THE TYPE THAT OFFICIALS VOWED TO PROTECT THE TWOMONTHOLD PROGRAM HAS STABILIZED THE YUAN CHINA'S CURRENCY CURBED RECKLESS LENDING AND DAMPED SPECULATION BUT THE CREDIT CRUNCH HAS BECOME SO SEVERE THAT INDUSTRIAL PRODUCTION AND SALES HAVE PLUNGED FORCING MANY STATE WORKERS ONTO INDEFINITE VACATION LEAVE THE HOWLS OF PAIN FROM INDUSTRY APPARENTLY HAVE PERSUADED BEIJING TO LOOSEN ITS GRIP ON CREDIT SLIGHTLY IN CASE A PROLONGED SLUMP SEVERELY DAMAGES INDUSTRY AND SQUEEZES INCOMES OF URBAN WORKERS RAISING THE DANGER OF UNREST BUT CHINESE OFFICIALS RULE OUT A MAJOR RELAXATION OF CREDIT FOR FEAR OF PROPELLING MONEYSUPPLY GROWTH INFLATION NOW IS RUNNING ABOVE 20 ANNUALLY IN MAJOR CITIES FACTORY MANAGERS ARE KICKING AND SCREAMING SAYS A SENIOR BANKING OFFICIAL IN BEIJING BUT THE CENTRAL BANK CAN ONLY ALLOW THEM TO OBTAIN CREDITS FOR WORKING CAPITAL LITTLE BY LITTLE AND ON A CASEBYCASE BASIS FOR SHENYANG NO 3 MACHINERY PLANT A LEADING MAKER OF EQUIPMENT FOR OIL DRILLING AND AUTO COMPANIES RELIEF IS NOWHERE IN SIGHT ITS TROUBLES SURFACED AROUND APRIL WHEN THE FACTORY BEGAN TO HAVE TROUBLE COLLECTING PAYMENTS FROM ITS CUSTOMERS BY THE END OF JUNE IT HAD RECEIVED PAYMENTS FOR ONLY ABOUT 60 OF THE EQUIPMENT IT SOLD IN THE FIRST HALF WHEN THE FACTORY TURNED TO ITS BANK FOR MORE CREDIT WE WERE TOLD TO TRY TO RECOVER FROM OUR CLIENTS THE MONEY NEEDED FOR PRODUCTION SAYS ZHU FENG A DEPUTY DIRECTOR RUNNING OUT OF OPERATING FUNDS NO 3 MACHINERY IS SLASHING PRODUCTION BY A THIRD IN THE SECOND HALF THE CUTBACKS ARE ALL THE MORE TRAUMATIC BECAUSE THE FACTORY ALONG WITH MUCH OF SHENYANG'S OTHER BASIC INDUSTRY ENJOYED A SALES BOOM IN THE FIRST HALF THANKS TO CHINA'S 70 SURGE IN SPENDING FOR INFRASTRUCTURE WE THOUGHT WE WOULD BE MAKING A BIG LEAP FORWARD THIS YEAR SAYS MR ZHU THE DEPUTY DIRECTOR IT NOW LOOKS MORE LIKE A BUST THE EFFECTS OF AUSTERITY ARE STARTING TO SHOW UP IN ECONOMIC DATA GROWTH OF INDUSTRIAL PRODUCTION HAVING PEAKED AT AN ANNUAL RATE OF 302 IN JUNE SLOWED TO 251 IN JULY VICE PREMIER ZHU HAS SAID HE HOPES TO REDUCE THE RATE TO ABOUT 15 BY YEAR END AS PART OF THE AUSTERITY PROGRAM ALL BANKS WERE ORDERED TO RECOVER BY AUG 15 UNAUTHORIZED LOANS THEY MADE TO PROPERTY AND STOCK MARKET SPECULATORS BEIJING'S AIM WAS TO REDIRECT CREDIT TO INDUSTRIES CRUCIAL TO THE ECONOMY HOWEVER BECAUSE BANKS HAVE BEEN ABLE TO RECOVER ONLY ABOUT A THIRD OF THE UNAUTHORIZED LOANS THEY HAVE TRIED TO COMPENSATE BY REDUCING THEIR WORKINGCAPITAL LOANS TO INDUSTRY JINBEI GM'S BANKERS FOR EXAMPLE HAVE REJECTED THE JOINT VENTURE'S PLEAS FOR A 20 INCREASE IN CREDITS FOR WORKING CAPITAL THIS YEAR TO COVER HIGHER PRODUCTION COSTS AS A RESULT THE VENTURE IS BEING FORCED TO CHOP PRODUCTION IN MARCH AND APRIL BANKERS WERE STILL WILLING TO LISTEN TO YOU BUT BY JUNE IT WAS ALMOST IMPOSSIBLE TO GET AN EXPANSION SAYS MICHAEL DUDENAS A VICE PRESIDENT RESPONSIBLE FOR PRODUCTION AT JINBEI GM IT WAS DIFFICULT EVEN TO HAVE A MEETING WITH BANKERS WHAT HAS MADE THE ADJUSTMENT PARTICULARLY DIFFICULT HE ADDS IS THAT WE DIDN'T SEE THE TIGHTENING COMING THERE WAS NO EARLY WARNING MR ZHAO OF JINBEI AUTOMOTIVE ARGUES THAT BEIJING HAS HIT THE ECONOMIC BRAKES FAR TOO HARD WHY DOES BEIJING HAVE TO BE THAT TOUGH HE ASKS WHY CAN'T IT FACE THE REALITY THAT BANKS CAN'T RECOVER ALL THE LOANS AND TELL THEM TO GET ON WITH THEIR NORMAL LENDING BUSINESS TO INDUSTRIES COPING WITH THE CREDIT SQUEEZE IS A TALL ORDER IN LIAONING PROVINCE WHERE OFFICIAL FIGURES SAY 43 OF ALL STATEOWNED FACTORIES ARE IN THE RED FOR ALL OF CHINA ABOUT A THIRD OF STATE FACTORIES ARE SUFFERING LOSSES ACCORDING TO OFFICIAL FIGURES UNLIKE THE INDUSTRIALLY PROSPEROUS PROVINCES OF GUANGDONG AND JIANGSU LIAONING IS SADDLED WITH A BIG CONCENTRATION OF FACTORIES BUILT BY THE JAPANESE DURING THEIR OCCUPATION BEFORE WORLD WAR II LACKING CAPITAL TO RETOOL MANY FACTORIES ARE STILL USING PREWAR JAPANESE EQUIPMENT I DON'T HAVE ENOUGH MONEY TO BUY RAW MATERIALS LET ALONE MONEY FOR RETOOLING SAYS LIU CHUNXIN DIRECTOR AND PARTY SECRETARY OF SHENYANG NO 2 WOOL TEXTILE MILL HE IS STANDING BEFORE SIX LARGE WAREHOUSES FULL OF UNSOLD CLOTHES MOSTLY BAGGY ARMY UNIFORMS AND OVERALLS BUNDLED IN LONG ROLLS AND NEATLY STACKED UP THE INVENTORY WAS BUILT UP DURING THE PREVIOUS LOW PERIOD IN 198890 WHEN THE FACTORY KEPT ITS SPINNERS RUNNING TO KEEP ITS 3000 WORKERS OFF THE STREETS EVEN THOUGH IT COULDN'T FIND BUYERS FOR CLOTHING BECAUSE THE INVENTORY HAS TIED UP TENS OF MILLIONS OF YUAN IN OPERATING FUNDS THE FACTORY RECEIVED ADDITIONAL CREDIT LINES FROM BANKS EVEN THOUGH IT HAS FAILED TO PAY INTEREST ON TIME MR LIU SAYS THE ECONOMIC BOOM EARLIER THIS YEAR DID LITTLE TO DEPLETE THE INVENTORY BUT IT HELPED COVER UP THE PROBLEM BANKS KEPT PUMPING IN MONEY TO KEEP THE FACTORY GOING WITH THE ECONOMIC SLOWDOWN THE FACTORY IS REACHING A CRISIS POINT EVEN SO IT'S FAR FROM CLEAR WHETHER BEIJING WILL MAKE GOOD ON ITS THREAT TO WEED OUT INEFFICIENT ENTERPRISES ASKED WHETHER HIS BANK WILL PULL THE PLUG THIS TIME MR LIU REPLIES CALMLY I DON'T THINK SO 9309020025 930902 TWO MEN INDICTED IN SALE OF TAINTED EGGS FOR CAVIAR SYRACUSE NY TWO MEN WERE INDICTED IN A DECADELONG SCHEME TO SELL PCB AND PESTICIDETAINTED SALMON EGGS WHICH ARE ONLY TO BE SOLD AS FISH BAIT UNDER STATE LAW TO RESTAURANTS AIRLINES CRUISE SHIPS AND CONSUMERS AS CAVIAR GARY L SHARPE THE US ATTORNEY FOR THE NORTHERN DISTRICT OF NEW YORK SAID ROBERT J GEHL OF LONG BOAT KEY FLA HIS TWO COMPANIES TEMPOTECH INDUSTRIES INC AND GEHL PRODUCTIONS INC AND GEORGE L JACKSON OF MONTAGUE MICH WERE CHARGED WITH ILLEGALLY PROCESSING AND SELLING TAINTED CAVIAR THE STATE REQUIRES THAT THE EGGS ONLY BE SOLD AS BAIT BECAUSE OF HIGH LEVELS OF CHEMICAL CONTAMINATION INCLUDING PCBS AND THE PESTICIDE MIREX THE INDICTMENT SAYS MR GEHL PROCESSED HUNDREDS OF THOUSANDS OF POUNDS OF SALMON EGGS INTO CAVIAR AND TRANSPORTED IT TO A FACILITY IN MICHIGAN THIS WAS DONE IN A WAY THAT MADE IT APPEAR THE EGGS WERE FROM MICHIGAN MR SHARPE SAID HE ADDED THAT THE CAVIAR WAS LATER SOLD TO VARIOUS COMPANIES INCLUDING INTERNATIONAL GOLD STAR TRADING INC GOLD STAR SMOKED FISH INC AND CASPIAN STAR CAVIAR INC OF BROOKLYN AMONG OTHERS AND EVENTUALLY RESOLD IN THE NEW YORK CITY AREA THE THREE COMPANIES ARE UNDER CRIMINAL INVESTIGATION FOR KNOWINGLY PARTICIPATING IN THE SCHEME ACCORDING TO CRAIG A BENEDICT ASSISTANT US ATTORNEY EUGIN GOSEV VICE PRESIDENT OF THE COMPANIES DENIES KNOWLEDGE OF THE CAVIAR'S ORIGINS NEITHER OF THE INDICTED INDIVIDUALS COULD BE REACHED FOR COMMENT 9309020024 930902 BUSINESS BRIEF HERTZ PHONE CARD OFFERS DISCOUNT RATES TO CORPORATE CLIENTS PARK RIDGE NJ NOW HERTZ WANTS TO PUT YOU ON THE TELEPHONE OFFERING A DISCOUNT LONGDISTANCE PHONE CARD TO ITS CORPORATE CUSTOMERS WITH RATES SIGNIFICANTLY LOWER THAN CARDS OFFERED BY PHONE COMPANIES LIKE THOSE OTHER CARDS HERTZ CORP'S NEW CARD ALSO OFFERS SPECIAL SERVICES SUCH AS VOICE MAIL MESSAGE FORWARDING AND FAX MAILBOXES ALL ACCESSIBLE THROUGH A SPECIAL TOLLFREE 800 NUMBER BUT THE BIGGEST ATTRACTION MAY BE THE NEW CARD'S LOWER CHARGES COMMUNICATIONS CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP OFFER LONGDISTANCE CARDS THAT CHARGE MORE THAN 20 CENTS PER MINUTE PLUS A FAT 60 CENTS TO 80 CENTS FEE ON EACH CALL MADE BUT HERTZ CHARGES 29 CENTS PER MINUTE PLUS A 29CENT SURCHARGE PER CALL AND CALLS TO SPECIAL VOICEMAIL SERVICES CARRY NO SURCHARGE ALTHOUGH A USER STILL PAYS THE 29CENTPERMINUTE RATE BUT AT&T WON'T SUFFER TOO MUCH DAMAGE FROM HERTZ'S NEW SERVICE THAT'S BECAUSE HERTZ IS ACTUALLY RESELLING AT&T LONGDISTANCE SERVICE AS WELL AS THE BULK TRANSMISSION SERVICES OF WILLIAMS TELECOMMUNICATIONS GROUP A WILLIAMS COS SUBSIDIARY TO OTHER BUSINESS PHONE USERS IN FACT HERTZ'S PROGRAM UNDERSCORES THE DEGREE TO WHICH LARGE CORPORATE USERS OF LONGDISTANCE COMMUNICATIONS SERVICES FROM CARRIERS SUCH AS AT&T HAVE BEEN ABLE TO TURN THE TRANSMISSION CAPACITY THEY AREN'T USING INTO THEIR OWN TELECOMMUNICATIONS BUSINESSES GENERAL ELECTRIC CO ALSO RESELLS AT&T SERVICE AT&T CAN GET OUR COMMUNICATIONS BUSINESS AND CONTINUE TO GROW ITS REVENUES ON THE BACKSIDE OF THAT WHEN WE RESELL THEIR SERVICES SAID PAUL HEBNER DIRECTOR OF SALES AND MARKETING AT HERTZ TECHNOLOGIES INC THE OKLAHOMA CITY UNIT THAT RUNS HERTZ'S MASSIVE CARRESERVATIONS CENTER 9309020023 930902 LAW LEGAL BEAT WHISTLES BLOW MORE OFTEN ON HEALTH CARE BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WHISTLEBLOWERS THE BANE OF THE NATION'S DEFENSE CONTRACTORS IN THE 1980S ARE RETOOLING FOR THE 1990S TO FOCUS ON HEALTHCARE PROVIDERS LAST MONTH FOR INSTANCE THE JUSTICE DEPARTMENT WON A 400000 SETTLEMENT AGAINST A CALIFORNIA NEUROLOGIST WHO ALLEGEDLY OVERBILLED THE GOVERNMENT'S MEDICARE PROGRAM FOR DIAGNOSTIC TESTS BUT THE US TREASURY WASN'T THE ONLY BENEFICIARY A PUBLIC INTEREST GROUP THAT ALERTED THE GOVERNMENT TO THE PROBLEM EARNED A 36000 BOUNTY I THINK YOU ARE GOING TO SEE A LOT MORE OF THESE CASES SAYS LISA HOVELSON EXECUTIVE DIRECTOR OF THE GROUP TAXPAYERS AGAINST FRAUD WHICH WAS ORGANIZED IN THE MID1980S TO EXPOSE PROBLEMS IN THE DEFENSE INDUSTRY WHISTLEBLOWERS ARE BECOMING FOOT SOLDIERS IN THE GOVERNMENT'S WAR ON HEALTHCARE FRAUD ENTICED BY A FEDERAL LAW THAT OFFERS THEM MILLIONS OF DOLLARS IN POTENTIAL REWARDS A GROWING NUMBER OF PEOPLE ARE FILING SUITS AGAINST MEDICAL BUSINESSES AND DOCTORS IN COMING FORWARD THEY ARE HELPING THE GOVERNMENT GET A HANDLE ON THE MULTIBILLIONDOLLAR FRAUD PROBLEM THIS SUMMER A SOUTHERN CALIFORNIA MAN CHRISTOPHER JACK DOWDEN RECEIVED 15 MILLION FOR TIPPING OFF THE GOVERNMENT IN 1990 TO QUESTIONABLE PRACTICES AT NATIONAL HEALTH LABORATORIES INC THE LA JOLLA CALIF MEDICAL LAB CHAIN THAT PAID 1114 MILLION TO THE US LAST YEAR TO SETTLE A RECORD MEDICAREFRAUD CASE LAST MONTH BLUE CROSS & BLUE SHIELD OF FLORIDA INC AGREED TO PAY 10 MILLION TO SETTLE ALLEGATIONS THAT THE COMPANY WHICH ADMINISTERS THE MEDICARE PROGRAM IN FLORIDA MISHANDLED AND CAUSED MASSIVE BACKLOGS IN THE PROCESSING OF CLAIMS THE CASE WAS LAUNCHED BY A FORMER BLUE CROSS ANALYST WHO NOW STANDS TO EARN AS MUCH AS 15 MILLION FOR HER WORK STILL OTHER CASES ARE WENDING THEIR WAY THROUGH THE COURTS LYNN SHAPIRO SNYDER A WASHINGTON ATTORNEY HANDLING THE FLORIDA SUIT SEES A GROWING TREND OF COMPANIES RATHER THAN INDIVIDUALS USING WHISTLEBLOWER SUITS AS A VEHICLE TO STOP ANTICOMPETITIVE PRACTICES TO PROPONENTS THE ADVENT OF WHISTLEBLOWING IN THE MEDICAL FIELD IS ALL FOR THE GOOD IT SEEMS TO ME THERE IS VERY DEFINITELY A MOVEMENT IN MAKING GREAT USE OF IT IN THAT AREA AND I'M GLAD SAYS SEN CHARLES GRASSLEY THE IOWA REPUBLICAN SPONSORED AMENDMENTS TO THE WHISTLEBLOWER LAW IN 1986 THAT HAVE GREATLY LIBERALIZED ITS USE NEXT WEEK A SENATE JUDICIARY COMMITTEE PANEL IS HOLDING HEARINGS ON THE LAW AND WILL DISCUSS PENDING LEGISLATION THAT WOULD NARROW A DEFENSE THAT COMPANIES HAVE SUCCESSFULLY USED IN DEFEATING SOME SUITS THE LAW IN QUESTION THE FALSE CLAIMS ACT WAS ENACTED IN 1863 TO COMBAT FRAUD AGAINST THE UNION ARMY IT PERMITS A PRIVATE PARTY TO FILE SUIT ON BEHALF OF THE US AGAINST ANYONE WHO HAS MADE FALSE CLAIMS WITH THE GOVERNMENT FEDERAL OFFICIALS HAVE THE OPTION OF TAKING OVER THE CASES BUT WHISTLEBLOWERS ARE ENTITLED TO 15 TO 30 OF ANY RECOVERY PLUS ATTORNEYS' FEES SINCE 1986 ABOUT 516 SUITS HAVE BEEN BROUGHT WITH TOTAL RECOVERIES OF ABOUT 358 MILLION AND WHISTLEBLOWERS POCKETING ABOUT 42 MILLION ACCORDING TO THE JUSTICE DEPARTMENT THE BOUNTYHUNTING LAW HAS ITS CRITICS FORMER ATTORNEY GENERAL WILLIAM BARR QUESTIONS THE MERCENARY NATURE OF THE LAW AND FEELS IT SPARKS FRIVOLOUS LITIGATION UNDERMINES EFFORTS BY COMPANIES TO POLICE THEMSELVES AND DISTRACTS FROM OTHER LAWENFORCEMENT PRIORITIES IN THE MAJORITY OF CASES FILED BY WHISTLEBLOWERS HE NOTES THE GOVERNMENT DECLINES TO PARTICIPATE CAROL C LAM A SAN DIEGO FEDERAL PROSECUTOR WHO WAS INVOLVED IN THE NHL CASE SUGGESTS THE 15 MILLION THAT MR DOWDEN RECEIVED WAS ON THE HIGH SIDE ASIDE FROM THE INITIAL TIP HE PROVIDED ME WITH NO ADDITIONAL INFORMATION SHE SAYS ADDING THAT I WILL GIVE HIM FULL CREDIT FOR COMING FORWARD AS A GOOD CITIZEN BUT SUPPORTERS SAY WHISTLEBLOWERS DESERVE WHAT THEY GET BECAUSE OF THE RISKS THEY TAKE SUCH AS UNEMPLOYMENT YOU NEED SOME EXAMPLES LIKE A JACK DOWDEN YOU WANT THAT TO BE ALMOST A BEACON TO OTHERS SAYING LOOK THE LAW WORKS' HERE'S A GUY WHO DID VERY WELL AND TOOK A VERY SIGNIFICANT STEP SAYS JOHN PHILLIPS A WASHINGTON ATTORNEY WHO REPRESENTED MR DOWDEN AND HAS HANDLED DEFENSECONTRACTOR FRAUD SUITS AS WELL CERTAINLY NOT ALL CASES GO SO SMOOTHLY IN THE FLORIDA BLUE CROSS CASE THE WHISTLEBLOWER IS CURRENTLY CHALLENGING THE GOVERNMENT'S 10 MILLION SETTLEMENT IN COURT AS INADEQUATE SUSAN HOLLRITH A WHISTLEBLOWER WHO HELPED THE GOVERNMENT RECOVER 385000 LAST NOVEMBER FROM AN AFFILIATE OF BLUE CROSS & BLUE SHIELD OF THE NATIONAL CAPITAL AREA CALLS THE SETTLEMENT IN HER CASE PATHETIC THE AFFILIATE ALLEGEDLY OVERBILLED THE AGENCY FOR INTERNATIONAL DEVELOPMENT IN CONNECTION WITH ITS HEALTHINSURANCE PROGRAM MS HOLLRITH AND HER ATTORNEY RECEIVED A TOTAL OF 108000 NONETHELESS THESE CASES ARE GAINING MOMENTUM ROBERT VOGEL A FORMER JUSTICE DEPARTMENT TRIAL ATTORNEY NOW IS IN PRIVATE PRACTICE IN WASHINGTON SPECIALIZING IN REPRESENTING WHISTLEBLOWERS IN THE HEALTHCARE FIELD HE SEES IT AS A GROWTH INDUSTRY HEALTH CARE IS DEFINITELY SOMETHING THAT IS MORE AND MORE IN THE PUBLIC CONSCIOUSNESS AND I EXPECT TO SEE MUCH MORE OF AN INCREASE IN THESE CASES THAN WE HAVE ALREADY SEEN HE SAYS YOU HAVE A REALLY SCREWEDUP SYSTEM OUT THERE MILITARY BAN A FEDERAL JUDGE IN SACRAMENTO CALIF RULED THAT THE MILITARY'S BAN ON GAY MEN AND LESBIANS SERVING IN THE ARMED FORCES IS UNCONSTITUTIONAL THE ASSOCIATED PRESS REPORTED THE CASE WAS FILED BY FORMER SAILOR MEL DAHL WHO WAS DISCHARGED FROM THE NAVY IN 1982 IT DOESN'T INVOLVE PRESIDENT CLINTON'S NEW DON'T ASK DON'T TELL DON'T PURSUE POLICY A JUSTICE DEPARTMENT SPOKESMAN SAID THE GOVERNMENT HASN'T DECIDED WHETHER TO APPEAL YET HE NOTED HOWEVER THAT TWO SIMILAR FEDERAL COURT RULINGS ARE BEING APPEALED WHO'S NEWS FRAN MILLER A BOSTON UNIVERSITY PROFESSOR OF HEALTH AND ANTITRUST LAW HAS JOINED THE BOSTON LAW FIRM OF NUTTER MCCLENNEN & FISH WHERE SHE IS OF COUNSEL ON A PARTTIME BASIS 9309020022 930902 WHO'S NEWS PEOPLE'S SAVINGS BANK OF BROCKTON PEOPLE'S SAVINGS BANK OF BROCKTON BROCKTON MASS JOHN A WILLIAMS 38 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANKING CONCERN POSITIONS HE HAS HELD ON AN INTERIM BASIS SINCE MAY WHEN THE COMPANY'S FORMER PRESIDENT AND CHIEF EXECUTIVE ROGER A KIBART TOOK A LEAVE OF ABSENCE MR KIBART 49 WAS INDICTED IN MAY BY A FEDERAL GRAND JURY ON ALLEGATIONS THAT HE MADE FALSE STATEMENTS TO INFLUENCE A LOAN BEING CONSIDERED BY PEOPLE'S SAVINGS THE LOAN WAS TOWARD THE PURCHASE OF A BUILDING IN WHICH MR KIBART HELD AN INTEREST AT THE TIME OF THE INDICTMENT AN ATTORNEY FOR MR KIBART DENIED THE ALLEGATIONS MR WILLIAMS SAID MR KIBART RESIGNED FROM THE COMPANY IN AUGUST MR WILLIAMS ALSO WAS NAMED A DIRECTOR SUCCEEDING MR KIBART 9309020021 930902 WHO'S NEWS M/ACOM MULLS SUCCESSION PACT TO REPLACE CHIEF BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL BURLINGTON MASS M/ACOM INC CONFIRMED THAT THOMAS A VANDERSLICE MAY GIVE UP HIS POSITION AS CHIEF EXECUTIVE OFFICER NEXT MONTH UNDER AN AGREEMENT WITH THE BOARD OF DIRECTORS THAT DESIGNATES CURRENT PRESIDENT ALLAN RAYFIELD AS HIS POSSIBLE SUCCESSOR UNDER AN EMPLOYMENT CONTRACT SIGNED WHEN MR RAYFIELD JOINED THE COMPANY AS PRESIDENT AND CHIEF OPERATING OFFICER IN MARCH 1991 M/ACOM'S BOARD IS REQUIRED TO DISCUSS THE SUCCESSION OF ITS TOP EXECUTIVES AFTER OCT 2 MR VANDERSLICE IS 61 YEARS OLD MR RAYFIELD IS 57 THE CONTRACT SPECIFICALLY ADDRESSES A MOVEMENT FROM CHIEF OPERATING OFFICER TO CHIEF EXECUTIVE OFFICER WITHIN A CERTAIN TIME FRAME SAID VICTORIA DILLON A COMPANY SPOKESWOMAN THE EMPLOYMENT AGREEMENT WAS DESCRIBED YESTERDAY IN THE BOSTON GLOBE AS A RESULT OF THE BOARD DISCUSSIONS MR RAYFIELD COULD BE NAMED CHIEF EXECUTIVE OFFICER MS DILLON SAID IF THAT PROMOTION OCCURS MR VANDERSLICE WHO HAS SERVED AS CHIEF EXECUTIVE SINCE 1989 WOULD REMAIN CHAIRMAN OF THE BOARD THE COMPANY SAID MS DILLON STRESSED THAT THE BOARD MAY TAKE NO ACTION AT ALL LEAVING MR RAYFIELD THE OPTION OF STAYING IN HIS CURRENT POSTS OR LEAVING THE COMPANY THE DECISION IS THE BOARD'S SHE SAID IT DEPENDS ON WHAT EVERYONE FEELS IS THE RIGHT COURSE FOR THE COMPANY IF MR RAYFIELD WERE TO LEAVE THE COMPANY HIS CONTRACT ENTITLES HIM TO CERTAIN PAYMENTS MS DILLON SAID MR RAYFIELD AND MR VANDERSLICE DIDN'T RETURN PHONE CALLS ELLIOTT ROGERS AN ANALYST AT COWEN & CO IN NEW YORK SAID HE THOUGHT THE UNUSUAL SUCCESSION ARRANGEMENT WAS RELATED TO M/ACOM'S HISTORY IN 1989 CHAIRMAN AND CHIEF EXECUTIVE THOMAS BURKE WAS KILLED IN A CAR ACCIDENT AND THE COMPANY HAD NO GROOMED SUCCESSOR WHEN BURKE DIED IT WAS CHAOS THERE THEY DIDN'T HAVE AN ORDERLY MANAGEMENT TRANSITION SAID MR ROGERS BOTH MR VANDERSLICE AND MR RAYFIELD ARE GENERALLY CREDITED WITH HELPING TO TRANSFORM M/ACOM FROM A DEFENSEORIENTED COMPANY TO A COMMERCIAL BUSINESS INVOLVED IN MAKING SEMICONDUCTORS FOR THE TELECOMMUNICATIONS INDUSTRY FOR THE THIRD QUARTER ENDED JULY 3 M/ACOM REPORTED NET INCOME OF 17 MILLION OR SEVEN CENTS A SHARE ON REVENUE OF 845 MILLION IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 24 MILLION OR 10 CENTS A SHARE ON REVENUE OF 1014 MILLION IF MR RAYFIELD WERE TO LEAVE THE COMPANY HIS CONTRACT ENTITLES HIM TO AT LEAST A ONE YEAR SALARY OF ABOUT 350000 AND CASH EQUAL TO 200000 M/ACOM SHARES MS DILLON SAID IN 1992 MR RAYFIELD EARNED 537500 IN SALARY AND BONUS THE STOCK CLOSED AT 875 A SHARE DOWN 375 CENTS OR 41 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9309020019 930902 SUPERMARKETS GENERAL'S OFFER WOODBRIDGE NJ SUPERMARKETS GENERAL CORP SAID IT EXTENDED ITS CURRENT BONDEXCHANGE PROGRAM TO SEPT 14 THE EXCHANGE OFFER HAD BEEN SCHEDULED TO CLOSE LAST TUESDAY HOLDERS OF EACH 1000 PRINCIPAL AMOUNT OF 11625 SUBORDINATED NOTES DUE 2002 CAN EXCHANGE THEIR NOTES FOR 1000 PRINCIPAL AMOUNT OF 11625 SUBORDINATED NOTES DUE 2002 OF THE COMPANY'S PARENT SUPERMARKETS GENERAL HOLDINGS CORP THE SUPERMARKET AND DRUGSTORE COMPANY SAID THAT AS OF MONDAY HOLDERS OF ABOUT 171 MILLION OR ABOUT 85 OF THE OUTSTANDING PRINCIPAL AMOUNT HAD TENDERED THEIR NOTES THE EXCHANGE OFFER IS PART OF A RECAPITALIZATION PLAN 9309020018 930902 UNITED BANKSHARES ACQUISITION CHARLESTON W VA UNITED BANKSHARES INC COMPLETED ITS 22 MILLION ACQUISITION OF FINANCIAL FUTURE CORP FINANCIAL FUTURE'S LEAD BANK FIRST BANK OF CEREDO WAS MERGED INTO UNITED NATIONAL BANK THE LEAD BANK FOR UBSI FOR EACH FINANCIAL FUTURE SHARE HOLDERS WILL RECEIVE FIVE SHARES OF UBSI COMMON STOCK UBSI SHARES WERE TRADING AT 2525 UNCHANGED IN THE OVERTHECOUNTER MARKET LATE YESTERDAY AT THAT PRICE THE TRANSACTION IS ABOUT TWICE THE BOOK VALUE OF FINANCIAL FUTURE STOCK NO FRACTIONAL SHARES WILL BE ISSUED 9309020017 930902 CREDIT MARKETS TREASURYS FINISH SEESAW SESSION LITTLE CHANGED AS TRADERS AWAIT AUGUST EMPLOYMENT REPORT BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY PRICES SEESAWED IN A NARROW RANGE YESTERDAY TO FINISH LITTLE CHANGED AS ATTENTION TURNED TO TOMORROW'S RELEASE OF THE AUGUST EMPLOYMENT REPORT THE BENCHMARK 30YEAR TREASURY BOND ROSE 1/8 POINT OR 125 FOR A BOND WITH 1000 FACE VALUE TO 102 6/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 609 FROM 610 TUESDAY THE 10YEAR NOTE ROSE 1/32 TO 102 8/32 TO YIELD 545 UNCHANGED FROM TUESDAY WITH THE EMPLOYMENT REPORT AHEAD IT WAS ONLY NATURAL FOR THE MARKET TO PAUSE FOLLOWING A MAJOR RALLY PLAYERS SAID TREASURYS BEGAN THE SESSION DOWN SLIGHTLY AMID SOME CARRYOVER SELLING FROM TUESDAY'S PRICE DECLINES BUT BUYERS STEPPED BACK IN AFTER THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORT ON AUGUST BUSINESS CONDITIONS THE PURCHASING MANAGERS' INDEX SLID TO 493 FROM 495 IN JULY A READING BELOW 50 SUGGESTS A DECLINE IN MANUFACTURING ACTIVITY TRADERS AND INVESTORS PAID ESPECIALLY CLOSE ATTENTION TO THE GROUP'S EMPLOYMENT INDEX WHICH SHOWED A WORSENING OF CONDITIONS IN MANUFACTURING THE INDEX DROPPED TO 404 IN AUGUST FROM 432 IN JULY WHILE ANALYSTS WARNED THAT THERE IS NO DIRECT CORRELATION BETWEEN THE EMPLOYMENT INDEX AND THE GOVERNMENT'S EMPLOYMENT REPORT MARKET PARTICIPANTS INFERRED FROM THE PURCHASING MANAGERS' REPORT THAT TOMORROW'S OFFICIAL DATA WILL SHOW THE ECONOMY STRUGGLING TO GROW THE NAPM REPORT WAS REALLY DISAPPOINTING FOR THE ECONOMY SAID BRIAN WESBURY CHIEF ECONOMIST AT GRIFFIN KUBIK STEPHENS & THOMPSON IN CHICAGO HE SAID THAT SO FAR ECONOMIC INDICATORS FROM JULY AND AUGUST SUGGEST ABSOLUTELY NO IMPROVEMENT IN THIRDQUARTER GROWTH OVER THE SECONDQUARTER PACE HE ADDED I'D BE LOOKING FOR 2 GROWTH OR LESS IN THE THIRD QUARTER WHILE THE PURCHASING MANAGERS' REPORT SPARKED SOME BUYING PARTICULARLY AMONG INTERMEDIATETERM SECURITIES IT WASN'T ENOUGH TO GENERATE MUCH OF A RALLY AND BY THE END OF TRADING MOST ISSUES STOOD NEAR LEVELS THAT HAVE BEEN IN PLACE FOR MORE THAN A WEEK IT HAS BEEN IN A PRETTY NARROW RANGE SAID FRED LEINER MARKET STRATEGIST AT CONTINENTAL BANK I THINK PEOPLE ARE HESITANT TO TAKE IT A LOT HIGHER SIMPLY BECAUSE WE HAVE AN EMPLOYMENT REPORT COMING UP FORECASTS FOR TOMORROW'S EMPLOYMENT REPORT CALL FOR AN INCREASE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT 150000 FROM THE PREVIOUS MONTH THAT WOULD FOLLOW A GAIN OF 162000 IN JULY MARKET WATCHERS ARGUE THAT THE JOBS DATA WILL BE CRITICAL IN DETERMINING WHETHER THE MARKET'S RECORDBREAKING RALLY CAN CONTINUE IF WE ARE GOING TO SEE SOME FOLLOWTHROUGH OF THE RECENT UP TREND WE NEED TO SEE SOME CONFIRMATION IN THE EMPLOYMENT REPORT THAT THE ECONOMY IS GROWING MODESTLY MR LEINER SAID AN EMPLOYMENT REPORT IN LINE WITH EXPECTATIONS WOULD POINT TO CONTINUED MODERATE ECONOMIC GROWTH SAID MR LEINER I DON'T KNOW THAT THAT WOULD HURT THE MARKET I SUSPECT THAT IT WOULD ALLOW THE RALLY TO CONTINUE HE SAID LAWRENCE WALDORF PORTFOLIO MANAGER AT FIRST INVESTORS MANAGEMENT CO SAID A WEAKERTHANEXPECTED JOBS REPORT WOULD PUSH BOND YIELDS TO NEW LOWS IF THE INCREASE IN NONFARM JOBS IS BELOW 100000 HE SAID I WOULDN'T BE SURPRISED IF WE GOT BELOW 6 THE SAME DAY BUT MR WALDORF SAID HE IS LOOKING BEYOND THE JOBS REPORT TO THE MORTGAGEBACKED SECURITIES MARKET FOR CONTINUED SUPPORT FOR THE LONG END THANKS TO RISING RATES OF PREPAYMENTS ON MORTGAGES MANY INVESTORS IN MORTGAGEBACKED SECURITIES HAVE SEEN THEIR BONDS CALLED SOONER THAN EXPECTED THESE INVESTORS HAVE MOVED INTO LONGTERM TREASURYS IN SEARCH OF HIGHER YIELDS TO COMPENSATE FOR THE PROBLEMS CAUSED BY RISING PREPAYMENTS PORTFOLIO MANAGERS HAVE BEEN PUTTING MONEY INTO 10YEAR AND 30YEAR TREASURYS THAT STORY WILL CONTINUE SAID MR WALDORF YOU'LL SEE CONTINUED WITHDRAWALS FROM THE MORTGAGEBACKED SECTOR HE ADDED THIS SHOULD BE A MORE PROLONGED PREPAYMENT CYCLE BECAUSE YOU AREN'T LIKELY TO SEE ANY MAJOR UPTICKS IN RATES ANYTIME SOON FOR THOSE WHO ARE NERVOUS ABOUT THE STRENGTH OF THE JUNKBOND MARKET YESTERDAY WAS A SCARY DAY THAT'S BECAUSE THE PRICE OF A BOND ISSUED JUST ONE DAY BEFORE PLUNGED SHARPLY SUCH A SHARP DROP FOR A RECENTLY ISSUED JUNK BOND IS RARE AND VERY BAD NEWS FOR INVESTORS WHO BOUGHT THE BOND AT THE OFFERING FOREST OIL CORP SOLD 100 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES AT 99259 TO YIELD 11375 ON TUESDAY TO GET THE DEAL DONE THE COMPANY HAD TO OFFER A HIGHER YIELD THAN IT HAD ANTICIPATED YESTERDAY THE NOTES TRADED AS LOW AS 985 FOR A 115 YIELD TRADERS SAID IN JUST ONE DAY THEY HAVE LOST MORE THAN 750 FOR EACH 1000 FACE VALUE A MODEST 650 MILLION OF CORPORATE DEBT WAS PRICED YESTERDAY NORTHERN TELECOM INC PRICED A 400 MILLION TWOPART OFFERING WITH 10YEAR AND 30YEAR MATURITIES MEANWHILE PNC FUNDING CORP PRICED 250 MILLION OF 10YEAR DEBT PNC FUNDING IS A UNIT OF PNC FINANCIAL CORP ALSO ABOUT 500 MILLION OF AGENCY PAPER WAS OFFERED DURING THE SESSION IN RESPONSE TO GROWING INTEREST AMONG US INVESTORS IN DEVELOPING NATIONS' DEBT A TOP US CREDIT RATING AGENCY MOVED TO STRENGTHEN ITS COVERAGE OF LATIN AMERICAN DEBT MARKETS STANDARD & POOR'S RATINGS GROUP ANNOUNCED THE PURCHASE OF ALL SHARES OUTSTANDING IN MEXICAN CREDIT RATING AGENCY CALIFICADORA DE VALORES SA FOR AN UNDISCLOSED CASH AMOUNT THE MEXICAN AGENCY WILL BE CALLED S&PCAVAL AND BE BASED IN MEXICO CITY S&P PRESIDENT LEO C O'NEILL SAID S&PCAVAL IS LIKELY TO BE USED AS A BRIDGE TO OTHER BURGEONING DEBT MARKETS IN THE REGION STANDARD & POOR'S IS A DIVISION OF MCGRAWHILL INC MUNICIPAL BOND PRICES FINISHED MIXED IN SLUGGISH TRADING MARKET PARTICIPANTS WERE STILL RELUCTANT TO UNDERTAKE BIG TRANSACTIONS BEFORE TOMORROW'S RELEASE OF AUGUST EMPLOYMENT DATA AND THE LABOR DAY WEEKEND THERE WAS LITTLE RESPONSE TO SEVERAL ECONOMIC REPORTS INCLUDING THE JULY DATA ON PERSONAL INCOME FULTONDEKALB GA HOSPITAL AUTHORITY'S 550 HOSPITAL REVENUE REFUNDING CERTIFICATES DUE 2020 FELL 1/8 TO 99 3/8 YIELDING 553 THE FLORIDA STATE BOARD OF EDUCATION'S 520 CAPITAL OUTLAY PUBLIC EDUCATION BONDS DUE 2019 GAINED 1/8 TO 97 3/8 TO YIELD 538 ALTHOUGH THERE HASN'T BEEN MUCH BUYING OF TAXEXEMPT BONDS THIS WEEK THE MARKET'S GENERAL UPWARD TREND IS EXPECTED TO CONTINUE FOR SOME TIME BECAUSE OF THE INCOME TAX INCREASES RECENTLY ENACTED PROSPECTS FOR A SLUGGISH ECONOMIC RECOVERY AND SUBDUED INFLATION ARE ALSO EXPECTED TO HELP THE BOND MARKET MORTGAGEBACKED SECURITIES DRIFTED SLIGHTLY LOWER AS THE MARKET CONTINUED TO WRESTLE WITH PREPAYMENT EXPECTATIONS PRICES FELL 1/32 ACROSS THE BOARD GINNIE MAE 6 SECURITIES FOR SEPTEMBER DELIVERY WERE AT 98 22/32 FREDDIE MAC GOLD 6 SECURITIES FELL TO 98 20/32 AND FANNIE MAE 6 SECURITIES DROPPED TO 98 16/32 EARLIER IN THE SESSION FEDERAL HOME LOAN MORTGAGE CORP REPORTED THAT PREPAYMENT SPEEDS FROM MIDJULY TO MIDAUGUST FOR SECURITIES CARRYING COUPONS OF 7 AND 75 WERE 20 FASTER THAN IN THE PREVIOUS REPORTING PERIOD FEDERAL NATIONAL MORTGAGE ASSOCIATION AND GOVERNMENT NATIONAL MORTGAGE ASSOCIATION WILL RELEASE PREPAYMENT SPEEDS FOR AUGUST NEXT WEEK THE REPORT CONFIRMS THAT REFINANCING ACTIVITY HAS PICKED UP EVEN AMONG HOMEOWNERS HOLDING MORTGAGES WITH INTEREST RATES AS LOW AS 75 MOST ANALYSTS EXPECT PREPAYMENTS TO ACCELERATE FURTHER FOR THE REST OF THE YEAR LINDA LOWELL A MORTGAGE ANALYST AT PAINEWEBBER SAYS THAT 75 AND 8 SECURITIES REMAIN FAR MORE VULNERABLE TO PREPAYMENTS THAN THE 7 BUT THAT IF CURRENT RATES HOLD HOLDERS OF 7 SECURITIES MAY HAVE REASON TO WORRY YESTERDAY SUCH WORRIES WERE REFLECTED MOSTLY IN COUPONS OF 8 AND HIGHER FANNIE MAE AND FREDDIE MAC 8 SECURITIES LOST 5/32 YESTERDAY BUT THEY ARE STILL TRADING AT EXTREMELY HIGH PRICES IN THE RANGE OF 104 TO 105 IN THE PRIMARY MARKET FREDDIE MAC ANNOUNCED NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING MORE THAN 2 BILLION THE SECURITIES WERE BACKED PRIMARILY BY 30YEAR 65 SECURITIES ALTHOUGH THE COLLATERAL ALSO INCLUDES 30YEAR 75 AND 15YEAR 65 SECURITIES FANNIE MAE ANNOUNCED DEALS TOTALING 1 BILLION ONE ISSUE BACKED BY 15YEAR 65 SECURITIES AND A SECOND BACKED BY 30YEAR 7 SECURITIES JACQUELINE DOHERTY CONTRIBUTED TO THIS COLUMN 9309020016 930902 CORPORATE SHIPPING RISE IS SEEN PEORIA ILL A SURVEY OF CORPORATE SHIPPING MANAGERS INDICATES THAT 66 EXPECT TO SHIP MORE PRODUCT IN THE NEXT YEAR THAN THEY DID IN THE PAST 12 MONTHS WHILE ONLY 7 ANTICIPATE SHIPPING LESS THE SURVEY SPONSORED BY CATERPILLAR INC'S ENGINE DIVISION ALSO FOUND THAT 40 EXPECT TO SHIP FROM MORE FACILITIES IN THE NEXT FIVE YEARS WHILE 8 THINK THEY'LL BE SHIPPING FROM FEWER FACILITIES THREE OF FOUR SHIPPING MANAGERS SURVEYED SAID THEY BELIEVE THE NORTH AMERICAN FREE TRADE AGREEMENT IF APPROVED BY CONGRESS WILL BENEFIT THE SHIPPING INDUSTRY WHILE 18 DISAGREED 9309020015 930902 OTC FOCUS TECHNOLOGY COMMUNICATIONS ISSUES LEAD NASDAQ TO ANOTHER RECORD CLOSE BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK NASDAQ STOCKS ONCE AGAIN OUTPERFORMED NEW YORK STOCK EXCHANGE ISSUES WITH THE NASDAQ COMPOSITE INDEX POSTING A MODERATE GAIN AND HITTING A RECORD CLOSE FOR THE THIRD STRAIGHT SESSION THE NASDAQ COMPOSITE INDEX ROSE 331 OR 045 TO 74615 THE NASDAQ 100 ROSE 302 OR 04 TO 74832 AND THE NASDAQ INDUSTRIAL INDEX ROSE 275 OR 036 TO 75948 ADVANCING ISSUES WERE SLIGHTLY AHEAD OF DECLINERS AT 1414 TO 1319 NATIONAL MARKET VOLUME FELL TO 224913800 SHARES FROM 265101800 SHARES TUESDAY THE DOW JONES INDUSTRIAL AVERAGE FELL 615 OR 017 TO 364510 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WAS UNCHANGED AT 25688 THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION COMPANIES ROSE 092 OR 037 TO 24711 WE'RE IN A LATETERM SECULAR BULL MARKET IN THE NASDAQ COMPOSITE GROUP SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS THE GROUP BENDS BUT IT WON'T BREAK IT SHOWS THAT THERE'S STILL MONEY THAT WANTS IN SELECTIVELY AS HAS BEEN THE CASE FOR SOME TIME THE MOST ACTIVE OVERTHECOUNTER STOCKS HAVE BEEN TECHNOLOGY AND COMMUNICATIONS ISSUES MICROSOFT ROSE 1 5/8 OR 22 TO 76 3/4 ON 2688600 SHARES AND ORACLE SYSTEMS CORP ROSE 1 5/8 OR 32 TO 53 1/8 ON 1607600 SHARES IT LOOKS LIKE THE BIGGIES NOT THE SMALLER COMPANIES THAT WERE DOING IT MR GOLDMAN SAID YESTERDAY ANALYSTS SAID THE TEPID PACE OF ECONOMIC ACTIVITY AND THE LACK OF SUSTAINED LEADERSHIP BY ANY MARKET SEGMENT BODE WELL FOR STOCKS OF SMALLER COMPANIES IN GENERAL THE OTC MARKET HAS BEEN VERY STRONG SAID SANDRA SHREWSBURY WHO HEADS PIPER JAFFRAY'S EMERGING GROWTH FUND BUT THE SAME TIME SHE SAID THE OTC MARKET HAS BEEN VERY LACKING IN LEADERSHIP WHICH RESULTS IN MARKET VOLATILITY AND LEAVES MANY STOCKS VULNERABLE THERE ARE GOOD OPPORTUNITIES BUT YOU DO NEED TO BE DIVERSIFIED AND SMALLER STOCKS TEND TO PROVIDE THAT FLEXIBILITY SHE SAID MR GOLDMAN OF AG EDWARDS SAID THAT WITH THE ECONOMY EXPECTED TO GROW ONLY MODERATELY INVESTORS NEED TO SEEK COMPANIES THAT CAN OUTPACE GROSS DOMESTIC PRODUCT GROWTH AND SAID THOSE TEND TO BE SMALLER COMPANIES MR GOLDMAN SAID THAT AFTER THE LABOR DAY WEEKEND WHEN THE MARKETS HAVE A FULL AUDIENCE HE EXPECTS TO SEE A MODERATE PROFITTAKING PULLBACK FOR ABOUT A WEEK THAT WILL PUSH THE NASDAQ COMPOSITE DOWN TO THE 725730 RANGE WHICH HE SAID IS NOTHING MAJOR WE'VE HAD A DARN GOOD RALLY THE LAST SIX OR SEVEN WEEKS AND I'M LOOKING FOR A TIME OUT MR GOLDMAN SAID DIAL PAGE POSTED AN INCREASE OF 5 3/4 OR 20 TO 35 AFTER OPPENHEIMER & CO INITIATED COVERAGE OF THE COMPANY'S SHARES WITH A RATING OF BUY CITING THE STOCK'S VALUATION DESIGNS INC WHICH WAS UPGRADED BY PAINEWEBBER INC TO BUY FROM ATTRACTIVE ROSE 2 1/4 OR 15 TO 17 1/4 SERAGEN WHICH WAS UP 1 1/8 OR 15 TO 8 1/2 ROSE AFTER THE COMPANY SAID ENCOURAGING REPORTS ON PHASE I AND II TRIALS OF INTERLEUKIN2 RECEPTORTARGETED FUSION TOXIN APPEARED IN TWO MEDICAL PUBLICATIONS THE COMPANY SAID THE FUSION TOXIN DAB486IL2 WAS TESTED IN SEVERELY ILL CHEMOTHERAPYRESISTANT CANCER PATIENTS COMVERSE TECHNOLOGY UP 7/8 OR 65 AT 14 1/4 ROSE ON NEWS THE COMPANY RECEIVED ORDERS WORTH ABOUT 1 MILLION FROM MOBILE TELECOMMUNICATIONS SERVICE PROVIDERS IN PORTUGAL AND ICELAND FOR ITS TRILOGUE VOICE/FAX MESSAGING SYSTEMS DR HORTON WHICH FELL 1 OR 66 TO 14 1/4 WAS DOWNGRADED BY LEHMAN BROTHERS TO OUTPERFORM FROM BUY AMONG SMALLERCAPITALIZATION COMPANIES LIDAK PHARMACEUTICALS FELL 3 11/16 OR 404 TO 5 7/16 AFTER CNBC FINANCIAL REPORTER DAN DORFMAN SAID SOME PEOPLE THINK THERE HAS BEEN A LOT OF HYPE BEHIND THE SHARP RISE IN LIDAK'S SHARES THIS YEAR THE STOCK IS UP MORE THAN 800 FROM A LOW OF 27/32 IN THE FIRST QUARTER VALUEVISION INTERNATIONAL ROSE 1 OR 226 TO 9 AFTER THE COMPANY LATE TUESDAY SAID CABLEVISION SYSTEMS WILL LAUNCH ITS HOME SHOPPING NETWORK PROGRAMMING TO A MINIMUM OF 700000 FULLTIME EQUIVALENT CABLE SUBSCRIBERS WITHIN 90 DAYS 9309020014 930902 BUSINESS BRIEF MCCAW CELLULAR COMMUNICATIONS DEAL TO LINK OPERATIONS WITH PACTEL IS COMPLETED MCCAW CELLULAR COMMUNICATIONS INC AND PACTEL CORP A SUBSIDIARY OF PACIFIC TELESIS GROUP SAID THEY CLOSED A TRANSACTION LINKING THEIR CELLULARPHONE INTERESTS IN SAN FRANCISCO SAN JOSE CALIF DALLAS AND KANSAS CITY MO A SPOKESMAN FOR MCCAW ONE OF THE NATION'S LARGEST CELLULARPHONE COMPANIES SAID THE PACTEL VENTURE HAD BEEN IN THE WORKS FOR MORE THAN A YEAR AND WOULD HAVE NO IMPACT ON THE RECENTLY PROPOSED 126 BILLION ACQUISITION OF MCCAW BY AMERICAN TELEPHONE & TELEGRAPH CO THE 5050 JOINT VENTURE APPROVED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION LAST MONTH CREATES TWO LARGE CELLULAR SERVICE AREAS COVERING ABOUT 92 MILLION POTENTIAL CUSTOMERS MCCAW IS BASED IN KIRKLAND WASH 9309020013 930902 HEARD ON THE STREET HOW HARD WILL REGULATORS LOOK AT MATTEL MERGER BY RANDALL SMITH AND JOSEPH PEREIRA STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION IS TALKING TOUGH ABOUT FIGHTING ANTICOMPETITIVE MERGERS JUST AS MERGER ACTIVITY IS SURGING FOR THE FIRST TIME IN FIVE YEARS WHERE WILL THOSE TWO FORCES COLLIDE A FEW TRADERS GOING AGAINST PREVAILING WALL STREET WISDOM SAY THE PROPOSED 11 BILLION ACQUISITION OF FISHERPRICE BY MATTEL COULD GET SURPRISINGLY THOROUGH SCRUTINY BY WASHINGTON REGULATORS WHEN THE MERGER WAS ANNOUNCED AUG 19 MOST ANALYSTS ASSUMED THAT IT POSED ZERO ANTITRUST PROBLEM BECAUSE THE 184 BILLION TOY INDUSTRY HAS A WIDELY SCATTERED CAST OF MANUFACTURERS WITH MATTEL AT 11 AND FISHERPRICE AT 4 THEIR COMBINED 15 MARKET SHARE WOULDN'T BE ANY LARGER THAN HASBRO'S AND NO OTHER PARTICIPANT HAS MORE THAN 5 I WOULD BE STUNNED IF THERE WAS ANY PROBLEM WITH THIS I THINK THERE'S A 999 CHANCE THAT NOTHING HAPPENS TO STOP IT SAYS SEAN MCGOWAN A TOY ANALYST AT GERARD KLAUER & MATTISON I DON'T SEE IT AS AN ISSUE AGREES MATTHEW J DISERIO OF PAINEWEBBER THE STOCKS ARE TRADING AS IF THAT WERE THE CASE AT YESTERDAY'S CLOSING PRICES FISHERPRICE SHARES WERE AT ONLY A 44 DISCOUNT TO THE VALUE OF THE 1275 MATTEL SHARES EACH STANDS TO BE SWAPPED FOR IN A MERGER THE DISCOUNT WOULD BE MUCH GREATER TRADERS SAY IF THERE WERE SUBSTANTIAL DOUBT ABOUT THE DEAL GOING THROUGH THAT COULD CAUSE FISHERPRICE STOCK TO FALL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MATTEL WAS UNCHANGED AT 27 3/8 AND FISHERPRICE CLOSED AT 33 3/8 OFF 1/8 IT'S PRECISELY FOR THAT REASON THAT SOME TRADERS ARE PLAYING THIS DEAL IN REVERSE BETTING THAT THE STOCKPRICE SPREAD BETWEEN MATTEL AND FISHERPRICE COULD WIDEN IF SUCH DOUBTS ARISE THEY BELIEVE THAT AT A MINIMUM THE GOVERNMENT IS LIKELY TO SEEK ADDITIONAL INFORMATION ABOUT THE TRANSACTION BEFORE GIVING THE GREEN LIGHT AT LEAST ONE SECURITIES ANALYST SAYS GOVERNMENT CLEARANCE WON'T BE AUTOMATIC JILL KRUTICK A TOY ANALYST AT SALOMON BROTHERS SAYS I THINK IT WILL DEFINITELY BE SCRUTINIZED YOU'VE HAD A CHANGE IN POLITICAL SENTIMENT AND THE INDUSTRY IS BECOMING MORE CONCENTRATED WITH NO 2 PICKING UP NO 4 TO RIVAL HASBRO AS NO 1 SHE SAYS THE DEAL SHOULD GIVE THE COMBINED COMPANY MORE CLOUT PARTICULARLY IN THE 12 BILLION MARKET FOR TOYS FOR INFANTS AND PRESCHOOL CHILDREN WHERE FISHERPRICE HAS A 27 SHARE AND MATTEL 8 THEIR COMBINED 35 SHARE WITH HASBRO AT 25 GIVES THE TOP TWO COMPANIES 60 ENOUGH SOME LAWYERS THINK TO SET OFF SOME ANTITRUST ALARM BELLS BUT MS KRUTICK BELIEVES THE DEAL WILL ULTIMATELY BE APPROVED CHIEFLY BECAUSE OTHER TOY COMPANIES COULD EASILY ENTER THE INFANT/PRESCHOOL MARKET IF MATTEL AND FISHERPRICE TRIED TO RAISE PRICES TOO FAR SOME ANTITRUST LAWYERS BELIEVE THE DEAL IS LIKELY TO GET A CLOSE LOOK CHARLES RULE OF COVINGTON & BURLING AND ANTITRUST CHIEF AT THE JUSTICE DEPARTMENT BETWEEN 1986 AND 1989 SAYS OF THE MATTEL/FISHERPRICE PLAN I WOULD GUESS THAT WOULD BE THE KIND OF MERGER THAT THIS ADMINISTRATION WOULD LOOK AT CAREFULLY ANNE BINGAMAN PRESIDENT CLINTON'S NEW ANTITRUST CHIEF AT THE JUSTICE DEPARTMENT HAS PUBLICLY PLEDGED A MOREAGGRESSIVE ANTITRUST ENFORCEMENT STANCE THAN THE LAISSEZFAIRE POSTURE OF THE REAGANBUSH ERA DURING THAT EARLIER SPAN NO 1 HASBRO WAS ALLOWED TO ACQUIRE NO 3 TONKA GIVING THE TWO COMPANIES 43 OF THE BOARDGAME MARKET BUT IT ISN'T CLEAR WHETHER THE JUSTICE DEPARTMENT WILL REVIEW THE MATTEL UNION WITH FISHERPRICE THE TOY BUSINESS IS USUALLY THE PROVINCE OF THE FEDERAL TRADE COMMISSION A SEPARATE AGENCY THAT RECENTLY DECLINED TO PRESS AN ANTITRUST CASE AGAINST MICROSOFT THE JUSTICE DEPARTMENT HAS SAID IT IS REVIEWING THE MATTER NEITHER THE JUSTICE DEPARTMENT NOR THE FTC WOULD COMMENT YESTERDAY A SPOKESMAN FOR FISHERPRICE OF EAST AURORA NY REFERRED QUESTIONS TO MATTEL IN EL SEGUNDO CALIF A MATTEL SPOKESMAN DECLINED TO COMMENT EXPLAINING THAT THE COMPANY WANTS TO STAY OUT OF A PUBLIC DEBATE WHICHEVER FEDERAL AGENCY LOOKS AT THE TOYCOMPANY PLAN MARKET SHARE ALONE WON'T BE THE DECIDING FACTOR REGULATORS ALSO MUST CONSIDER WHETHER A MARKET AS SMALL AS THE INFANT/PRESCHOOL ONE IS RELEVANT FOR PRICING PURPOSES AND HOW EASILY OTHER TOY MAKERS COULD ENTER THAT MARKET IF MATTEL AND FISHERPRICE RAISED PRICES LAWYERS SAY THE ULTIMATE LEGAL TEST IS WHETHER THE COMBINED COMPANIES COULD MAKE A 5 PRICE INCREASE STICK SOME TOY BUYERS GRUMBLE THAT THE SHRINKING FIELD OF COMPETITORS WILL INDEED LEAD TO HIGHER PRICES IT MEANS WE'LL PROBABLY BE PAYING 799 FOR A FISHERPRICE CHATTER TELEPHONE THAT USED TO COST 499 SAYS STEPHEN SANDBERG A FOXBORO MASS WHOLESALER WHO BUYS TOYS FOR SEVERAL NORTHEAST RETAILERS BUT SOME BIGGER BUYERS SAY THEY AREN'T WORRIED MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS R US THE LARGEST US TOY RETAILER SAYS THE BUSINESS SHOULD REMAIN VERY COMPETITIVE AT THE SUPPLIER LEVEL ONE TAKEOVERSTOCK TRADER WHO HAS STUDIED THE MATTEL/FISHERPRICE MERGER ARGUES THAT THE TWO COMPANIES WOULDN'T HAVE MONOPOLY PRICING POWER EVEN IN THE INFANT/PRESCHOOL MARKET BECAUSE PARENTS HAVE SUCH ALTERNATIVES AS VIDEOCASSETTES WHOSE SALES AREN'T COUNTED IN THE INDUSTRY STATISTICS YET THE JUSTICE DEPARTMENT HAS DEFINED MARKETS NARROWLY BEFORE EARLIER THIS YEAR THE AGENCY SOUGHT TO BLOCK A 58 MILLION ACQUISITION OF MECA SOFTWARE BY CHIPSOFT MS BINGAMAN ARGUED THAT THE DEAL WOULD HAVE MEANT HIGHER PRICES IN THE MARKET FOR TAXPREPARATION SOFTWARE THE TWO COMPANIES LATER CALLED OFF THE DEAL SOME ANTITRUST LAWYERS BELIEVE IT WOULD BE MORE LOGICAL FOR THE JUSTICE DEPARTMENT TO CHALLENGE BIGGER HIGHERPROFILE TRANSACTIONS IN TELECOMMUNICATIONS OR HEALTH CARE SUCH AS THE PROPOSED ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS BY AMERICAN TELEPHONE & TELEGRAPH OR MERCK'S PROPOSED ACQUISITION OF MEDCO CONTAINMENT SERVICES BUT THE HECTIC PACE OF TECHNOLOGICAL CHANGE COULD MAKE IT DIFFICULT TO APPLY ANTITRUST LAW TO TODAY'S CELLULAR TELEPHONE MARKET AND AN ANTITRUST CHALLENGE TO MERCKMEDCO IN WHICH A DRUG MAKER IS ACQUIRING A DISCOUNT DISTRIBUTOR COULD UNDERCUT PRESIDENT CLINTON'S DRIVE FOR LOWER HEALTHCARE COSTS WILLIAM BAXTER WHO AS PRESIDENT REAGAN'S ANTITRUST CHIEF NEGOTIATED THE BREAKUP OF AT&T SAYS I THINK THE DEMOCRATS ON THE HILL HAVE BEEN TALKING A MORE ACTIVIST ANTITRUST GAME FOR A LONG TIME NOW THEY ARE IN A PUTUP OR SHUTUP' POSITION ADDS MR BAXTER NOW A LAW PROFESSOR AT STANFORD UNIVERSITY AND A LAWYER WITH SHEARMAN & STERLING I HOPE THEY DON'T DO TOO MANY SILLY THINGS UNDER THAT COMPULSION 9309020012 930902 PEPPERAND SALT HAS FOLKS LIKE ME TO LIEN ON MY MIND STAYS BRIGHT BOTH DAY AND NIGHT TILL THEY GO AWAY 9309020011 930902 INTERNATIONAL AMERICAN BUSINESSMAN IS HELD IN CHINA IN DISPUTE BEIJING AP CHINA'S ATTEMPTS TO CLAMP DOWN ON EASY CREDIT APPARENTLY HAVE LED TO THE DETENTION OF AN AMERICAN BUSINESSMAN PHILIP CHENG 64 YEARS OLD OF PULLMAN WASH HAS BEEN CONFINED TO HIS HOTEL ROOM UNDER GUARD IN CHANGSHA SINCE LAST FRIDAY BECAUSE OF A FINANCIAL DISPUTE WITH HIS CHINESE PARTNERS THE US EMBASSY IN BEIJING SAID THE COURT IN CHANGSHA THAT ORDERED THE DETENTION ALSO CONFISCATED MR CHENG'S PASSPORT EMBASSY SPOKESMAN KIM HARGAN SAID CHANGSHA IS IN SOUTH CHINA'S HUNAN PROVINCE MR CHENG CHAIRMAN OF A JOINTVENTURE FACTORY THAT MAKES MOTORCYCLE AND BICYCLE HELMETS WAS IN CHANGSHA TRYING TO WORK OUT A DISPUTE WITH THE HUNAN ARTS & CRAFTS IMPORTEXPORT CO SAID JIM HOLLENBACK A SEATTLE BUSINESS ASSOCIATE HE SAID THE HUNAN COMPANY HAD INVESTED 200000 IN MR CHENG'S FACTORY THIS SPRING BUT LATER DEMANDED THE MONEY BACK MR HARGAN SAID THE HUNAN COMPANY FELL AFOUL OF RECENT FINANCIAL REFORMS WHICH INCLUDED ORDERS FROM CHINA'S CENTRAL BANK TO RECALL UNAUTHORIZED LOANS THE CHINESE SIDE DECIDED THE WAY TO GET THE MONEY BACK WAS TO TAKE CHENG TO COURT MR HARGAN SAID THE US EMBASSY HAS PROTESTED TO THE CHINESE FOREIGN MINISTRY AND TO GOVERNMENT OFFICIALS IN CHANGSHA 9309020009 930902 ECONOMY MANUFACTURING ACTIVITY EASED IN AUGUST FOR THIRD TIME IN A ROW SURVEY SAYS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR IS STILL IN THE DUMPS A CLOSELY FOLLOWED SURVEY OF PURCHASING MANAGERS SUGGESTS THE INDEX OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDICATED THAT THE MANUFACTURING ECONOMY CONTRACTED IN AUGUST FOR THE THIRD MONTH IN A ROW THE NEWS IS DISHEARTENING MANUFACTURING HELPED THE RECOVERY GET STARTED MORE THAN TWO YEARS AGO BUT SEVERAL INDICATORS SUGGEST THE SECTOR HAS BECOME LISTLESS AND IS NOW PREVENTING THE ECONOMY FROM GAINING MORE MOMENTUM SOME ECONOMISTS BELIEVE THE PLIGHT OF THE NATION'S FACTORIES HAS BEEN EXAGGERATED HOWEVER AND THAT THE SECTOR THOUGH WEAK IS ACTUALLY POISED FOR GROWTH THE PURCHASING MANAGERS' INDEX SLIPPED TO 493 LAST MONTH FROM 495 IN JULY SINCE JUNE WHEN IT WAS 483 THE INDEX HAS REGISTERED BELOW 50 WHICH THE ASSOCIATION SAYS SUGGESTS THAT MANUFACTURING ACTIVITY IS SHRINKING A READING ABOVE 50 SUGGESTS IT IS EXPANDING BUT JIM MEIL CHIEF ECONOMIST FOR EATON CORP A MAKER OF AUTO PARTS IN CLEVELAND SAID HE AND SOME OTHER MANUFACTURING ECONOMISTS BELIEVE THAT THE DIVIDING LINE BETWEEN GROWTH AND CONTRACTION MAY ACTUALLY BE SOMEWHERE AROUND 485 BY THAT STANDARD THE MANUFACTURING SECTOR HAS BEEN GROWING CONSISTENTLY FOR MORE THAN A YEAR AND A HALF EXCEPT FOR THE DROP IN JUNE IN MANY DURABLEGOODS AREAS THE THOUGHT OF CONTRACTION DOESN'T FIT THE BILL MR MEIL SAID FOR INSTANCE PRODUCTION OF MOTOR VEHICLES HAS BEEN STRONG IN THE THIRD QUARTER PRODUCTION OF COMPUTERS AND CAPITAL EQUIPMENT ALSO HAS BEEN ROBUST HOWEVER THE MANUFACTURING SECTOR DOES HAVE SOME OBVIOUS PROBLEMS WEAKNESS OF MANY US TRADING PARTNERS AND THE CONTINUED CONTRACTION OF THE DEFENSE INDUSTRY AND COMMERCIAL AIRCRAFT OF THESE THE LATTER TWO ARE STRUCTURAL LIKELY TO HINDER INDUSTRIAL PRODUCTION FOR SOME TIME BUT ANALYSTS SAY THAT ONCE WESTERN EUROPE IN PARTICULAR GETS BACK ON TRACK THE MANUFACTURING SECTOR SHOULD IMPROVE THIS SUMMER HAS SEEN A REAL BIG DROP IN EXPORTS AND IT'S MAKING MANUFACTURERS TENTATIVE SAID TOM RUNIEWICZ INDUSTRIAL ECONOMIST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA ACCORDING TO THE PURCHASING SURVEY PRODUCTION AND NEW ORDERS DID IMPROVE A BIT IN AUGUST HOWEVER EMPLOYMENT CONTINUED TO CONTRACT THAT JIBES WITH FIGURES FROM THE LABOR DEPARTMENT THAT HAVE SHOWN FACTORIES SLASHING THEIR WORK FORCES SINCE THE START OF THE YEAR HOWEVER THE INDEX DOESN'T TAKE INTO ACCOUNT HOURS WORKED WHICH ARE AT HIGH LEVELS AND SUGGEST THAT DEMAND IS PICKING UP IN AUGUST INVENTORIES ALSO HURT THE PURCHASING INDEX FALLING FOR THE THIRD STRAIGHT MONTH BUT THE COMBINATION OF DECLINING INVENTORIES AND AN INCREASED BACKLOG OF ORDERS IN AUGUST MAY BODE WELL FOR THE MANUFACTURING SECTOR THIS SUGGESTS THAT PRODUCTION SHOULD PICK UP TO KEEP UP WITH DEMAND SAID ROBERT J BRETZ WHO HEADS THE SURVEY AND IS DIRECTOR OF CORPORATE PURCHASING FOR PITNEY BOWES INC HOWEVER MR BRETZ ADDED THAT HE DOESN'T THINK THE INCREASE IN ACTIVITY WILL TRANSLATE INTO EMPLOYMENT ESPECIALLY AS FACTORIES HAVE PROVEN THEIR COMMITMENT TO INCREASING PRODUCTIVITY BY INVESTING HEAVILY IN CAPITAL EQUIPMENT THE INFLATION NEWS IN THE PURCHASING REPORT WAS ENCOURAGING IT INCREASED FOR THE SEVENTH STRAIGHT MONTH BUT IS ONLY A FRACTION HIGHER THAN IN JULY MR BRETZ SAID THE RATE OF INCREASE IN PRICES APPEARS TO HAVE PLATEAUED SEPARATELY THE COMMERCE DEPARTMENT SAID DISPOSABLE PERSONAL INCOME FELL 03 IN JULY AFTER DROPPING 01 IN JUNE THE DEPARTMENT SAID FLOODING IN THE MIDWEST AND DROUGHT IN THE SOUTHEAST PULLED THE INCOME FIGURES DOWN CONSIDERABLY COMMERCE SECRETARY RONALD BROWN SAID THAT WITHOUT THOSE WEATHER PROBLEMS INCOME WOULD HAVE RISEN 05 IN JULY DESPITE THE DROP IN INCOME CONSUMPTION STILL INCREASED IN JULY IT WAS UP 04 AFTER A 06 JUMP IN JUNE AS A RESULT THE SAVINGS RATE DROPPED TO 33 OF DISPOSABLE INCOME FROM 4 THE MONTH BEFORE ALSO THE DEPARTMENT RELEASED REVISED ESTIMATES FOR PERSONAL INCOME AND OUTLAYS FROM 1990 THROUGH JUNE OF THIS YEAR THE FIGURES SHOW THAT PERSONAL INCOME AND SPENDING WERE STRONGER THAN PREVIOUSLY THOUGHT THE SAVINGS RATE IN 1992 WAS RAISED TO 53 FROM 48 THAT'S THE HIGHEST LEVEL SINCE 1986 THE COMMERCE DEPARTMENT ALSO SAID CONSTRUCTION SPENDING FELL 07 IN JULY TO 3896 BILLION CONTINUING ITS YEARLONG ERRATIC PATTERN ALL MAJOR CATEGORIES FELL PRIVATE CONSTRUCTION RESIDENTIAL BUILDINGS COMMERCIAL SITES AND PUBLIC CONSTRUCTION ALL FIGURES HAVE BEEN ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9309020008 930902 ECONOMY DELINQUENCIES ON HOME MORTGAGE LOANS ROSE IN 2ND PERIOD AMID WEAK ECONOMY BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LATE PAYMENTS ON RESIDENTIAL MORTGAGES CREPT UP AGAIN IN THE SECOND QUARTER BOOSTED BY SHARP INCREASES IN DELINQUENCIES ON LOANS FOR LOWERINCOME HOUSEHOLDS DUE TO CONTINUED ECONOMIC WEAKNESS INSTALLMENTS PAST DUE 30 DAYS OR MORE ON ONETOFOURUNIT RESIDENTIAL MORTGAGES ROSE TO 439 OF ALL SUCH LOANS FROM 429 IN THE FIRST QUARTER ACCORDING TO A MORTGAGE BANKERS ASSOCIATION OF AMERICA SURVEY THE PERCENTAGE OF LOANS IN FORECLOSURE CLIMBED TO 102 FROM 100 IN THE SECOND QUARTER FROM THE PREVIOUS QUARTER BY REGION FORECLOSURES WERE UP IN THE NORTHEAST AND WEST BUT DOWN IN THE SOUTH AND MIDWEST THE TRADE GROUP REPORTED DELINQUENCIES TEND TO FOLLOW WHAT IS HAPPENING IN THE OVERALL ECONOMY AND THE OVERALL ECONOMY STARTED TO WEAKEN AGAIN IN THE FIRST HALF OF THIS YEAR SAID DAVID W BERSON CHIEF ECONOMIST FOR FEDERAL NATIONAL MORTGAGE ASSOCIATION THE CONTINUED RISE IN MORTGAGE DELINQUENCIES COMES AS CREDITCARD DELINQUENCIES HAVE BEEN FALLING WHILE LATE PAYMENTS ON CREDIT CARDS HAVE DROPPED AMID CAUTION OVER DEBT ACCUMULATION SOME HOMEOWNERS ARE FINDING IT HARDER TO MAKE TIMELY PAYMENTS BECAUSE THEY HAVE EITHER LOST THEIR JOBS OR EQUITY IN THEIR HOMES DUE TO SAGGING PRICES THE PROBLEM IS MOST ACUTE IN STILLWEAK NEW ENGLAND AND RECESSIONRAVAGED CALIFORNIA WHERE FALLING PRICES HAVE WIPED OUT THE EQUITY IN MANY HOMES AS MANY AS 12 OF HOMES IN SOME PARTS OF NEW ENGLAND AND SOUTHERN CALIFORNIA NOW HAVE NEGATIVE EQUITY MEANING THE BORROWERS ARE MORE LIKELY TO STOP PAYING ON A LOAN SAID JONATHAN E GRAY SENIOR ANALYST FOR SANFORD C BERNSTEIN & CO IN NEW YORK NO ONE WALKS AWAY FROM A HOME AND LEAVES EQUITY IN IT MR GRAY SAID BUT IF THE HOME IS WORTH MUCH LESS THAN THE MORTGAGE THE PROPENSITY OF A BORROWER TO DEFAULT INCREASES DELINQUENCIES ON LOANS INSURED BY THE FEDERAL HOUSING ADMINISTRATION JUMPED TO 743 FROM 689 IN THE SECOND QUARTER REFLECTING WHAT MORTGAGE ASSOCIATION OFFICIALS TERMED SHARP INCREASES IN PAYMENTS PAST DUE 60 DAYS OR MORE FHA OFFICIALS SAID THE BULK OF THEIR DELINQUENCIES WERE IN THE LEASTTROUBLING CATEGORY OF PAYMENTS PAST DUE BY 30 DAYS THEY SAID THEIR FIGURES SHOW THAT THE MOSTWORRISOME 90DAY DELINQUENCY RATE HAS DIPPED SLIGHTLY IN RECENT MONTHS LATE PAYMENTS ON VETERANS ADMINISTRATIONBACKED LOANS INCREASED TO 657 FROM 624 MOSTLY BECAUSE OF PAYMENTS PAST DUE BY ONLY 30 DAYS VA OFFICIALS DISPUTED THE MORTGAGE ASSOCIATION'S NUMBERS SAYING THEIR FIGURES FOR DEFAULTS SHOW A CONTINUED DECLINE DUE TO WHAT A SPOKESMAN CALLED BETTER UNDERWRITING LATE PAYMENTS ON CONVENTIONAL LOANS WERE FLAT IN THE SECOND QUARTER MR GRAY SAID FALLING PRICES WIPE OUT EQUITY FASTER ON VA AND FHA LOANS THAN ON CONVENTIONAL LOANS BECAUSE THEY REQUIRE MINIMAL DOWN PAYMENTS THE MAJORITY OF VA LOANS REQUIRE NO DOWN PAYMENT AT ALL WHILE CONVENTIONALLOAN BORROWERS TYPICALLY PUT DOWN AS MUCH AS 20 HOME BUYERS USING GOVERNMENT LOANS TEND TO HAVE LOWER INCOMES AND SO ARE MORE SUSCEPTIBLE TO DELINQUENCY IN THE CASE OF A LOST JOB OR DIMINISHED PAY FANNIE MAE'S MR BERSON SAID SWITCH TO CONVENTIONAL LOANS WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION SAID THAT SO MANY PEOPLE HAVE SWITCHED FROM FHA LOANS TO CONVENTIONAL LOANS WITH LESSEXPENSIVE INSURANCE PREMIUMS THAT THE AGENCY IS LEFT WITH MANY HIGHERRISK BORROWERS HE SAID THE FHA CHARGES LOAN PREMIUMS THAT ARE TWO TO THREE TIMES MORE EXPENSIVE THAN MOST PRIVATE INSURANCE PROGRAMS FHA HAS MADE ITSELF HIGHLY VULNERABLE TO DELINQUENCIES MR LASKO SAID FHA OFFICIALS ACKNOWLEDGED THEY ARE LOSING CUSTOMERS BECAUSE OF REFINANCINGS IT DOES MAKE THE FHA MORTGAGE INSURANCE FUND VULNERABLE SAID JEANNE ENGEL FHA'S GENERAL DEPUTY ASSISTANT SECRETARY FOR HOUSING SHE SAID THE AGENCY WANTS CONGRESS TO ALLOW IT TO ATTRACT BUSINESS BY INCREASING THE MAXIMUM LOAN LIMIT OF 151725 AND REDUCING PREMIUM COSTS MORTGAGE ANALYSTS SAID LATE PAYMENTS OVERALL ARE STILL DOWN NEARLY A PERCENTAGE POINT FROM THE PEAK OF 526 IN THE SECOND QUARTER OF 1991 MORTGAGE DELINQUENCIES HAD SUBSIDED IN THE SECOND HALF OF 1992 AS EMPLOYMENT GRADUALLY IMPROVED AND A REFINANCING BOOM ENABLED BORROWERS TO REDUCE THEIR MONTHLY PAYMENTS BUT LATE PAYMENTS BEGAN RISING AGAIN IN THE FIRST HALF OF THIS YEAR SINCE THE ECONOMY IS STILL WEAK ECONOMISTS EXPECT THE DELINQUENCY RATE TO CONTINUE TO RISE SLOWLY IN THE CURRENT QUARTER 9309020006 930902 INTERNATIONAL GERMAN STUDY CITES CHALLENGES TO COMPETITIVENESS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BONN IF GERMANY IS TO COMPETE SUCCESSFULLY IN THE COMING DECADES THE COUNTRY NEEDS THOROUGH REFORM IN AREAS RANGING FROM ITS TAX STRUCTURE TO ITS EDUCATIONAL SYSTEM A GOVERNMENT STUDY CONTENDS THE 96PAGE REPORT ON SECURING THE FUTURE OF GERMAN COMPETITIVENESS PREPARED BY THE ECONOMICS MINISTRY IS DESIGNED AS THE OPENING PITCH BY CHANCELLOR HELMUT KOHL'S GOVERNMENT IN ITS EFFORT TO HEIGHTEN AWARENESS OF THE LONGTERM ECONOMIC PROBLEMS FACING THE COUNTRY THE REPORT IS EXPECTED TO BE APPROVED BY THE CABINET TODAY AND LEADING MEMBERS OF MR KOHL'S CHRISTIAN DEMOCRATIC UNION HAVE INDICATED THAT MANY OF THE PROPOSALS WILL BE USED AS CAMPAIGN ISSUES FOR NEXT YEAR'S FEDERAL ELECTIONS THE DOCUMENT CITES THE COSTS OF UNIFICATION GLOBAL COMPETITION THE PROHIBITIVE COST OF GERMAN LABOR AND THE AGING OF THE GERMAN POPULATION AS KEY CHALLENGES TO THE NATION'S ECONOMIC WELLBEING IT NOTES THAT PUBLIC SPENDING HAS JUMPED TO MORE THAN HALF OF GROSS DOMESTIC PRODUCT FROM JUST UNDER 44 OF GDP IN 1988 BY CONTRAST PUBLIC SPENDING ACCOUNTS FOR 35 OF GDP IN THE US AND ONLY 32 IN JAPAN TO HELP REDRESS THE IMBALANCE THE GOVERNMENT PLEDGES IN THE REPORT TO LOWER SPENDING PROPORTIONATELY TO PREUNIFICATION LEVELS BY THE END OF THE DECADE THROUGH TAX REFORM SUBSIDY CUTS PRIVATIZATION AND STRICT LIMITING OF PAYMENTS FOR SOCIAL SERVICES THE REPORT INCLUDES PRESCRIPTIONS FOR EXTENSIVE INDUSTRIAL DEREGULATION A SHORTENING OF THE YEARS STUDENTS SPEND IN SECONDARY AND UNIVERSITYLEVEL EDUCATION AND PLEAS TO GERMAN EMPLOYERS AND UNIONS FOR MORE FLEXIBLE WORK RULES ON THE IDEOLOGICAL SIDE THE REPORT CALLS FOR A RETURN TO THE VIRTUES THAT IT BELIEVES MADE GERMANY A LEADING INDUSTRIAL NATION CONSCIOUSNESS OF RESPONSIBILITY HUMANITY AND COMPASSION RELIABILITY LOYALTY PUNCTUALITY DECISIVENESS AND CREATIVITY THE REPORT IS NOTABLE FOR ITS OMISSIONS AS WELL AS ITS SUGGESTIONS A CONFLICT WITHIN THE CABINET ERUPTED IN RECENT WEEKS OVER THE ECONOMICS MINISTRY'S ORIGINAL SUGGESTION THAT THE STUDY ADVOCATE CURTAILING THE GROWTH IN PUBLICFUNDED PENSIONS A MAJOR COMPONENT IN LABOR COSTS CURRENTLY GERMANS CONTRIBUTE AN AMOUNT WORTH MORE THAN 19 OF WORKERS' ANNUAL INCOME TO THE NATIONAL PENSION SCHEME WITH THE SUM DIVIDED BETWEEN EMPLOYERS AND EMPLOYEES GERMANY HAS ONE OF THE LOWEST BIRTHRATES IN THE WORLD SO MAINTAINING PENSION LEVELS WILL REQUIRE SHARPLY HIGHER CONTRIBUTIONS AS A SHRINKING NUMBER OF WORKERS SUPPORT MORE RETIREES INDEED PROJECTIONS SHOW THAT IN 2030 THERE WILL BE ROUGHLY AS MANY PENSIONERS AS WORKERS PAYING INTO THE SYSTEM CURRENTLY THERE ARE MORE THAN TWO WORKERS FOR EACH RETIREE BUT CUTTING PENSIONS REMAINS A POLITICAL TABOO AND MR KOHL FORCED THE EXCISION OF ANY SUCH RECOMMENDATION MEANWHILE OTHER RECOMMENDATIONS HAVE BEEN WATERED DOWN THE REPORT PUT OFF THE HEATED ISSUE OF LIBERALIZING OPENING HOURS FOR STORES UNTIL AFTER THE NEXT ELECTION LEADING BUSINESS LEADERS TO COMPLAIN THAT TOO MANY COMPROMISES FOUND A WAY INTO THE REPORT AS IF TO EMPHASIZE THE POINT THE FEDERATION OF GERMAN INDUSTRY RELEASED ITS OWN COMPETITIVENESS REPORT JUST AS THE GOVERNMENT'S FINDINGS WERE BEING LEAKED TO THE MEDIA REITERATING AN OFTHEARD COMPLAINT ABOUT UNCONTROLLED SOCIAL SPENDING THE FEDERATION ARGUED THAT GERMANY IS ON THE WAY TO HAVING A STATE ECONOMY SAYING THAT THERE HAS TO BE A FAREWELL TO THE NOTION OF TOTAL INSURANCE FOR PENSION HEALTH UNEMPLOYMENT AND OLDAGE CARE A SPOKESMAN FOR THE ORGANIZATION OBSERVED THE STATE HAS ITSELF BECOME A BRAKE ON GROWTH 9309020005 930902 WHO'S NEWS HOECHST OFFICIAL TO BE ROUSSEL'S CHAIRMAN IN MANAGEMENT SWAP PARIS FRENCH PHARMACEUTICALS COMPANY ROUSSEL UCLAF AND CONTROLLING SHAREHOLDER HOECHST AG OF GERMANY ANNOUNCED MANAGEMENT SHUFFLES DESIGNED TO STRENGTHEN SYNERGIES BETWEEN THE TWO COMPANIES ERNSTGUENTER AFTING CURRENTLY HEAD OF HOECHST'S PHARMACEUTICAL DIVISION WILL BECOME ROUSSEL'S CHAIRMAN JAN 1 THE 51YEAROLD MR AFTING WHO WILL SUCCEED THE 67YEAR OLD EDOUARD SAKIZ UPON HIS RETIREMENT WILL BE THE FIRST NONFRENCHMAN TO HEAD ROUSSEL WHICH USED TO BELONG TO THE FRENCH STATE JEANPIERRE GODARD A MEMBER OF ROUSSEL'S CURRENT MANAGEMENT BOARD WILL SUCCEED MR AFTING AS THE HEAD OF HOECHST'S PHARMACEUTICAL DIVISION AFTER RETIRING MR SAKIZ WILL BECOME PRESIDENT OF ROUSSEL'S SUPERVISORY BOARD WHILE MARTIN FRUEHAUF MANAGING BOARD MEMBER OF HOECHST WILL BECOME VICE PRESIDENT OF THE ROUSSEL SUPERVISORY BOARD HOECHST SAID THE MANAGEMENT CHANGES WILL HAVE ABSOLUTELY NO EFFECT ON THE COMPANIES STANCE CONCERNING RU486 THE CONTROVERSIAL ABORTION PILL MADE BY ROUSSEL IF AN APPROPRIATE PLAYER EMERGES TO FULFILL THE REQUIREMENTS NECESSARY FOR INTRODUCING IT INTO THE US THE COMPANY WILL NOT ACT TO PREVENT IT A SPOKESWOMAN SAID SINCE FRENCH STATEOWNED CHEMICAL COMPANY RHONEPOULENC SA FLOATED ITS 35 STAKE IN ROUSSEL IN A PUBLIC SHARE OFFERING IN JULY HOECHST'S EFFECTIVE INFLUENCE OVER ROUSSEL HAS INCREASED CURRENTLY THE GERMAN COMPANY HOLDS 55 OF ROUSSEL FOLLOWING COMPLETION OF A TWOMILLION SHARE CAPITAL INCREASE HOECHST'S SHARE WILL RISE SLIGHTLY ROUSSEL ALSO NAMED OLIVIER JACQUESSON A MEMBER OF THE MANAGEMENT BOARD AS MANAGING DIRECTOR AND DANIEL CAMUS AS FINANCE DIRECTOR SUCCEEDING PIERRE MORALI WHO LEAVES AT THE END OF THE YEAR 9309020004 930902 REVIEW & OUTLOOK EDITORIAL POP CULTURAL SOVEREIGNTY EAST IS EAST AND WEST IS WEST WROTE RUDYARD KIPLING LAST CENTURY AND NEVER THE TWAIN SHALL MEET SOME OF TODAY'S ASIAN LEADERS APPARENTLY WANT TO KEEP IT THAT WAY COMMENTING ON THE 525 MILLION SALE OF STARTV BY HONG KONG TYCOON LI KASHING TO THE AUSTRALIANBORN AMERICAN RUPERT MURDOCH MALAYSIA'S MAHATHIR MOHAMAD CALLED IT ANOTHER WEDGE FOR THE WEST IN ASIA THEIR MAIN IDEA THE PRIME MINISTER SAID OF WESTERN NEWS ORGANIZATIONS IS TO CREATE FRICTION AND INSTABILITY SO THAT IF WE ARE UNSTABLE THEY CAN COMPETE WITH US SIMILARLY INDIAN INFORMATION AND BROADCASTING MINISTER KP SINGH DEO TWO WEEKS AGO PROPOSED A LAW TO RESTRICT WESTERN CABLE TELEVISION BROADCASTS IN INDIA WHEN INDIANS VOTE WITH THEIR REMOTE CONTROLS THOUGH THEY DON'T SEE IT THAT WAY SATELLITE NETWORKS LIKE STARTV AND ZEETV ARE WAKING UP THE STATEOWNED CHANNELS WHOSE IDEA OF PROGRAMMING TENDS TOWARD GEOMETRY LESSONS IN PRIME TIME WHAT'S AT ISSUE HERE IS MORE THAN JUST BOMBAY TAKING A TIMEOUT FOR THE ANTICS ON SANTA BARBARA THE REAL QUESTION IS WHETHER WHAT IS OFTEN CALLED CULTURAL SOVEREIGNTY CAN BE RECONCILED WITH THE MODERN WORLD THERE SEEMS TO BE A NASCENT FEAR THAT THE CULTURAL ASSAULT FROM THE LIKES OF STARTV COULD TRAP ASIAN SOCIETIES LIKE DINOSAURS IN A WESTERN JURASSIC PARK IF ASIANS ARE CONCERNED ABOUT THIS OF COURSE THEY COULD TRY TO BEAT THE COMPETITION FAMILIES IN DELHI WATCH THE BOLD AND THE BEAUTIFUL AND THE BBC WORLD SERVICE BECAUSE SO MUCH LOCAL PROGRAMMING IS DULL IF LOCAL PRODUCERS WOULD MAKE BETTER PROGRAMS PEOPLE WOULD WATCH THEM CULTURES CAN'T AVOID EACH OTHER AND THEY SOMETIMES CLASH THIS PHENOMENON IS HARDLY NEW AND WHILE MR MAHATHIR MIGHT SEE IN THE ENCOUNTER A BATTLE OF VALUES ON THE HUMAN LEVEL IT HAS MORE CLOSELY RESEMBLED A MATING DANCE SHANGHAI'S 1930S CAFE SOCIETY WORE BLACK TIE AND DRANK FRENCH CHAMPAGNE IN THEIR YOUTH MAO TSETUNG AND HIS COMMUNIST BRETHREN JITTERBUGGED TO TOMMY DORSEY EVERYWHERE IN ASIA ONE ENCOUNTERS VARIATIONS ON THE SAME PATTERN WE WERE STRUCK DURING A RECENT VISIT TO WESTERN CHINA'S SICHUAN PROVINCE BY HOW LOCALS STILL HALFWOO AND HALFFEAR WESTERNERS WHOSE WAYS REMAIN BARBARIAN BUT WHOSE GOODS ARE IRRESISTIBLE OR WITNESS TWO CANTONESE GIRLS SHARING AN EGG MCMUFFIN AND GOSSIP AT A HONG KONG MCDONALD'S THAT THOSE TWO GIRLS SHARE THEIR EGG MCMUFFIN FOR DINNER IS INSTRUCTIVE THIS EXOTIC CONCOCTION IS AVAILABLE IN THE WEST ALMOST EXCLUSIVELY FOR BREAKFAST BUT MOST ASIANS PREFER THE SANDWICH LATER IN THE DAY LIKE ANY ROMANCE CROSSCULTURAL AFFAIRS DEVELOP WITH TWISTS AND TURNS SUGGEST TO THOSE TWO 13YEAROLDS AN EGG MCMUFFIN FOR BREAKFAST AND THEY'D GIGGLE THEY'D PREFER A HOT DOG THE FEAR THAT WESTERN POP IS SUBVERTING SOME OF THE WORLD'S MOST ANCIENT CULTURES IGNORES THE RESILIENCE THOSE CULTURES HAVE USED TO SUSTAIN THEMSELVES FOR CENTURIES IT IGNORES THE COMPLEXITIES OF CHOICE AND TASTE IT IGNORES THE STRENGTH OF THE ASIAN FAMILY SATELLITES NOT ONLY BEAM IMAGES OF LALA LAND TO ASIA FASTER THAN A SPEEDING BULLET THEY ALSO DISSEMINATE LOCAL NEWS TO EAGER VIEWERS MUCH QUICKER THAN SOME STATERUN NETWORK AIRING A GOVERNMENT LINE BESIDES THE FLOW OF IDEAS WORKS BOTH WAYS WESTERNERS DANCE THE LAMBADA PLAY MAHJONG EAT PINEAPPLE RICE PRACTICE JUDO AND STUDY JAPANESE MANAGEMENT IN REALITY ARMIES OF WESTERN INVADERS BEARING THEIR CULTURAL ARTIFACTS ARE NOT SWEEPING ACROSS THE CULTURAL PLAINS WRECKING EVERYTHING IN SIGHT FROM KOREA TO INDONESIA TO INDIA ASIAN CULTURES ARE TOO SOPHISTICATED TOO SOVEREIGN TO BE UNDERMINED BY THE SELFABSORPTION OF ROCK OR THE CYNICISM OF THE AVANTGARDE 9309020003 930902 LETTERS TO THE EDITOR AS PER MEDICAL PLANS LET'S HAVE LAWYERAID IN REGARD TO YOUR AUG 17 PAGE ONE ARTICLE THE LAWYERLESS IT'S CLEAR FROM YOUR ARTICLE THAT THERE IS A CRISIS IN THIS COUNTRY IN THE LEGAL SYSTEM THE PERSON WHO TREATS HIMSELF HAS A FOOL FOR A PHYSICIAN THIS IS UNDOUBTEDLY TRUE IN THE LEGAL ARENA AS WELL IT'S TIME TO SERIOUSLY CONSIDER LEGAL AID PROGRAMS PARALLELING THOSE IN MEDICINE WE CAN SPECIFY A PROGRAM FOR THE POOR LIKE MEDICAID IN WHICH ALL ATTORNEYS ARE BOUND TO A REDUCED FEE SCHEDULE FOR THOSE OF PROVEN NEED WE CAN ALSO SET UP A PROGRAM FOR THE ELDERLY LIKE MEDICARE IN WHICH THOSE OVER THE AGE OF 65 WILL ONLY BE REQUIRED TO PAY THEIR ATTORNEYS ACCORDING TO A REDUCED FEE SCHEDULE TO MAKE IT FAIR ACROSS THE BOARD IT WOULD NOT BE UNREASONABLE TO TIE LEGAL LICENSURE TO ACCEPTANCE OF THESE FEE SCHEDULES IT HAS BEEN DEMONSTRATED MANY TIMES THAT A BAD OUTCOME IN COURT CAN BE JUST AS DEVASTATING TO A CITIZEN'S LIFE AS A BAD OUTCOME IN THE HOSPITAL IT IS TIME FOR ALL PROFESSIONALS NOT JUST PHYSICIANS TO STEP FORWARD AND HELP SHOULDER THE LOAD YOUR ARTICLE BRINGS TO MIND THE VERY REASON SO MANY AMERICANS FIND THEMSELVES FRUSTRATED AND ANGRY WITH THE LEGAL SYSTEM AND LAWYERS SPECIFICALLY LAWMAKERS LARGELY ATTORNEYS HAVE CREATED A LEGAL SYSTEM SO COMPLEX THAT THE COMMON MAN REQUIRES A SPECIALIST TO PROPERLY ADDRESS THE TECHNICALITIES DESIGNED INTO IT THE FACT THAT MANY HAVE DECIDED TO TAKE THE LAW INTO THEIR OWN HANDS CAN BE HERALDED AS A TRIUMPH RATHER THAN A SIN FUTURE REVISIONS IN OUR LEGAL SYSTEM AS WITH ACCOUNTING AND MEDICINE AMONG OTHERS SHOULD BE DESIGNED AROUND SIMPLE GENERAL RULES ACCESSIBLE TO ALL IF WE ARE TO HAVE FREEDOM FOR ALL 9309020001 930902 LETTERS TO THE EDITOR DON'T KILL OUR MERCHANT MARINE I WRITE IN RESPONSE TO YOUR AUG 16 EDITORIAL ON PENDING PROPOSALS THAT WOULD HAVE DRAMATIC AND UNDESIRABLE EFFECTS ON THE US MERCHANT MARINE THE EDITORIAL IS FLAWED IN SEVERAL RESPECTS FIRST IT CHARACTERIZES ME AS AN ALLY OF THE MARITIME INTERESTS RATHER I AM AN ADVOCATE FOR OUR NATIONAL SECURITY INTERESTS THE MERCHANT MARINE IS KNOWN AS OUR FOURTH ARM OF DEFENSE IN OPERATION DESERT STORM IT WAS THE PRIVATELY OWNED US FLAGGED USCREWED SHIPS THAT DELIVERY EQUIPMENT TO OUR TROOPS IN THE PERSIAN GULF NOT THE FOREIGN FLAGGED FOREIGNCREWED SHIPS THAT REFUSED TO SAIL INTO DANGEROUS WATERS GEN COLIN POWELL SAID LAST YEAR THE PERSIAN GULF WAR IS OVER BUT THE MERCHANT MARINE'S CONTRIBUTION TO OUR NATION CONTINUES WE ARE A MARITIME NATION THIS MEANS THAT NOT ONLY DO WE NEED A STRONG NAVY BUT A STRONG MARITIME INDUSTRY AS WELL IN RECENT TESTIMONY BEFORE THE SENATE THE CHIEF OPERATING OFFICERS OF THE NATION'S LARGEST MARITIME COMPANIES STATED THAT ABSENT THE VERY KINDS OF PROGRAMS YOUR EDITORIAL ATTACKS THEY WOULD HAVE NO ALTERNATIVE BUT TO HAVE THEIR SHIPS OPERATE UNDER A FOREIGN FLAG GIVING AWAY OUR MARITIME INDUSTRY TO FOREIGN CONTROL UNDER THE MANTRA OF DEREGULATION DOES NOT SERVE OUR NATION'S INTERESTS AT ALL BUT THIS IS NOT JUST ABOUT DEFENSE IT'S ALSO ABOUT WISE GOVERNMENT SPENDING AND EMPLOYMENT THERE'S NO DEBATE ABOUT WHETHER THE COUNTRY WILL HAVE TO PAY FOR SHIPS TO TRANSPORT GOODS IN TIME OF WAR IT'S A QUESTION OF HOW WE WILL PAY FOR THEM INSTEAD OF PROVIDING COMMERCIAL SHIPPING COMPANIES A STIPEND TO KEEP THEM ON RETAINER SO THAT THEY CAN BE CALLED UP WHEN NEEDED THE DEFENSE DEPARTMENT WOULD RATHER BUILD ITS OWN SHIPS WHICH IT CAN KEEP IN RESERVE UNTIL WE NEED THEM AT GREATER EXPENSE TO THE TAXPAYER FOR EXAMPLE THE NAVY ANNOUNCED ON AUG 2 THAT IT HAD AWARDED CONTRACTS TOTALING 1 BILLION TO CONVERT FIVE FOREIGNBUILT SHIPS TO CARRY WEAPONS AND OTHER EQUIPMENT THE 1 BILLION DOES NOT EVEN INCLUDE THE COST OF ACQUIRING THE SHIPS A BILLION DOLLARS COULD SUPPORT 50 COMMERCIAL SHIPS FOR 10 YEARS DURING WHICH TIME THEY COULD BE CALLED INTO SERVICE IN THE MEANTIME THEY WOULD BE PROVIDING JOBS SUPPORTING A COMMERCIAL SHIPPING FLEET DOESN'T INCREASE COSTS IT DECREASES THEM IT WOULD ALSO ENSURE THAT THOUSANDS OF SEAFARING AND SHIPBUILDING JOBS WOULD NOT BE LOST TO FOREIGN COMPETITION THE EDITORIAL ALSO FAILS TO RECOGNIZE THAT OUR DECISIONS MUST BE MADE WITH AN EYE TOWARD THE POLICIES OF OTHER NATIONS BECAUSE SHIPPING IS INTERNATIONAL IN SCOPE US CARRIERS AND SHIPBUILDERS MUST COMPETE WITH FOREIGN CARRIERS AND BUILDERS THAT HAVE ARTIFICIAL ADVANTAGES SUCH AS DIRECT AND INDIRECT SUBSIDIES FAIR TRADE ASSUMES THERE IS A LEVEL PLAYING FIELD ON WHICH TO COMPETE THAT IS NOT THE CASE IN THE MARITIME INDUSTRY FOR EXAMPLE YOU ASSERT THAT US LAWS AND POLICIES ARE OUTDATED AND HAVE CONTRIBUTED TO THE DECLINE OF THE MARITIME INDUSTRY WHY THEN DO MOST SEAFARING NATIONS ALSO HAVE CARGO PREFERENCE OR CARGO RESERVATION PROGRAMS THE US CARGO PREFERENCE PROGRAM APPLIES TO CERTAIN FOREIGN AID CARGOES AND TO MILITARY CARGOES BUT IT DOES NOT APPLY TO COMMERCIAL CARGOES OF THE WORLD'S 54 SHIPPING NATIONS 36 HAVE SOME FORM OF NATIONAL FLAG PREFERENCE PROGRAM ACCORDING TO THE MARITIME ADMINISTRATION MOST SHIPPING NATIONS ALSO HAVE SOME FORM OF CABOTAGE LAWS SUCH AS OUR JONES ACT RESTRICTING TRADE BETWEEN DOMESTIC PORTS TO NATIONAL FLAG CARRIERS YOU STATE THAT THE JONES ACT ADDS TO THE TRADE DEFICIT BY EFFECTIVELY BLOCKING THE SALE OF ALASKAN OIL TO JAPAN TELL THAT TO THE ALASKAN RESIDENTS WHOSE JOBS US JOBS I ADD WOULD BE LOST IF THE JONES ACT WERE ABOLISHED 9309020132 930812 MEDICINE FEMALE DOCTORS LIKELIER TO ORDER MAMMOGRAMS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SHOWS THAT WOMEN WHO SEE FEMALE DOCTORS ARE MUCH MORE LIKELY TO GET TWO IMPORTANT CANCER SCREENING TESTS THAN WOMEN WHOSE DOCTORS ARE MALE THE REPORT IS THE LATEST IN AN EMERGING NEW AREA OF RESEARCH THAT SUGGESTS PHYSICIAN GENDER MAY PLAY AN IMPORTANT ROLE IN BOTH THE DOCTORPATIENT RELATIONSHIP AND ON THE QUALITY OF HEALTH CARE THE STUDY FOCUSED ON PAP SMEARS AND MAMMOGRAPHY TESTS THAT INVOLVE INTIMATE EXAMINATIONS OF WOMEN AND ARE REGARDED AS CRITICAL PROCEDURES FOR DETECTING CERVICAL AND BREAST CANCERS AT EARLY TREATABLE STAGES A GROWING NUMBER OF EMPLOYERS AND OTHER HEALTH PURCHASERS ARE BEGINNING TO RATE THE PERFORMANCE OF HEALTH PLANS BASED IN PART ON THEIR ABILITY TO PROVIDE THESE AND OTHER PREVENTIVE TESTS TO THEIR MEMBERS THE RESULTS LIKELY REFLECT DISCOMFORT AMONG SOME MALE PHYSICIANS IN PERFORMING THE TESTS AS WELL AS DEFICIENT TRAINING IN PREVENTIVE CARE RESEARCHERS SAID SOME WOMEN MAY BE RELUCTANT TO SEEK SUCH SERVICES FROM MALE DOCTORS AS WELL MEN PHYSICIANS AS A GROUP MAY NOT BE AS INTERESTED IN PREVENTION AS WOMEN ARE SUGGESTED NICOLE LURIE ASSOCIATE PROFESSOR OF MEDICINE AND PUBLIC HEALTH AT HENNEPIN COUNTY MEDICAL CENTER MINNEAPOLIS AND THE UNIVERSITY OF MINNESOTA THEY HAVE SOME SPECIAL CHALLENGES IN THIS AREA THAT THEY MIGHTN'T BE AWARE OF SHE IS LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE A STRIKING FINDING OF THE STUDY SHE SAID WAS THAT YOUNG MALE DOCTORS WERE THE LEAST LIKELY TO PERFORM PAP SMEARS THE OVERALL DIFFERENCES WERE MOST PRONOUNCED AMONG PATIENTS SEEING FAMILY DOCTORS AND INTERNISTS THERE WERE FEW SIGNIFICANT VARIATIONS BETWEEN MALE AND FEMALE OBSTETRICIANGYNECOLOGISTS WHO WERE ALSO MORE PROFICIENT AT PROVIDING THE TESTS THAN PRIMARY CARE DOCTORS WHILE THE RESULTS SUGGEST THAT WOMEN DOCTORS MAY BE MORE EFFECTIVE THAN THEIR MALE COUNTERPARTS IN PROVIDING SOME CARE TO WOMEN PATIENTS SOME RESEARCHERS CAUTIONED AGAINST A BROAD DEFINITIVE READING OF THE FINDINGS RATHER THEY SAID THE STUDY AND OTHER SIMILAR RESEARCH SUGGESTS THAT A COMPLEX ARRAY OF SOCIAL AND CULTURAL FACTORS RELATED TO GENDER MAY INFLUENCE THE DELIVERY AND QUALITY OF HEALTH CARE AS TRITE AS IT SOUNDS MEN AND WOMEN WERE MALES AND FEMALES LONG BEFORE THEY BECAME DOCTORS AND PATIENTS SAID SHERRIE KAPLAN A RESEARCHER AT THE HEALTH INSTITUTE AT THE NEW ENGLAND MEDICAL CENTER IN BOSTON DR KAPLAN'S STUDIES ON GENDER AND MEDICAL CARE HAVE FOUND AMONG OTHER THINGS THAT MALE PATIENTS ARE MORE PASSIVE WITH MALE DOCTORS THAN WITH FEMALE DOCTORS AND OVERALL MORE TACITURN THAN WOMEN PATIENTS JUDITH HALL AND JULIE IRISH AT NORTHEASTERN UNIVERSITY BOSTON AND COLLEAGUES HAVE FOUND THAT PATIENT SATISFACTION WITH CARE IS LOWEST AMONG MEN WITH YOUNG FEMALE DOCTORS IN THE CURRENT STUDY DR LURIE AND HER COLLEAGUES EXAMINED MEDICAL CLAIMS OF PATIENTS WHO WERE MEMBERS IN 1990 OF MEDICA A HEALTH MAINTENANCE ORGANIZATION OPERATED BY UNITED HEALTHCARE CORP MINNEAPOLIS THE ANALYSIS IS BASED ON 24713 PATIENTS AND MORE THAN 500 DOCTORS ABOUT ONEQUARTER OF WHOM WERE FEMALE THE RESEARCHERS FOUND THAT WOMEN SEEING WOMEN DOCTORS WERE TWICE AS LIKELY TO HAVE HAD A PAP SMEAR AS THOSE SEEING MEN PHYSICIANS ABOUT 32 OF PATIENTS SEEING MALE INTERNISTS AND FAMILY DOCTORS UNDER 38 YEARS OLD RECEIVED THE TESTS WHILE OLDER MALE DOCTORS WERE SOMEWHAT MORE LIKELY TO PROVIDE THE EXAMS WOMEN AT LEAST 40 YEARS OLD WERE 41 MORE LIKELY TO BE REFERRED FOR A MAMMOGRAM IF THEIR DOCTORS WERE FEMALE RADIOLOGISTS WHO PERFORM MAMMOGRAMS WEREN'T PART OF THE STUDY MORE THAN 80 OF PATIENTS WHOSE PRIMARY DOCTOR WAS AN OBSTETRICIANGYNECOLOGIST GOT PAP SMEARS AND MORE THAN 60 OF WOMEN 40 AND OVER RECEIVED MAMMOGRAMS THE RATES WERE SIGNIFICANTLY LOWER FOR BOTH MALE AND FEMALE INTERNISTS AND FAMILY DOCTORS EVEN AMONG THE WOMEN DOCTORS THE RATES OF SCREENING ARE FAR FROM PERFECT DR LURIE NOTED AS MUCH AS WE TALK ABOUT WANTING TO DO PREVENTIVE CARE WE NEED TO DO BETTER AT IT DR LURIE SAID THE HEALTH PLAN HAS SET UP PROJECTS TO SEND REMINDERS TO MEMBERS WHEN THEY'RE DUE FOR PREVENTIVE TESTS SHE ALSO SUGGESTED THAT MORE RELIANCE ON NURSES TO PERFORM OR ACTIVELY MONITOR COMPLIANCE MIGHT HELP MAKE SURE TESTS ARE PROVIDED WHAT WE REALLY NEED TO DO ADDED LOIS QUAM OF UNITED HEALTHCARE'S CENTER FOR HEALTH CARE POLICY AND EVALUATION WHO IS A COAUTHOR OF THE STUDY IS FIND WHAT WOMEN DO THAT MAKES THEM MORE EFFECTIVE IN THIS REGARD AND TEACH MEN TO DO IT SEE RELATED LETTERS LETTERS TO THE EDITOR DOCTORS MUST TARGET PREVENTATIVE CARE WSJ SEPT 2 1993 9308120110 YY93 MM09 9309020123 930813 SPENDING TAXBITE TREMORS RATTLE THE UPPER CRUST AS WEALTHY FACE REALITY OF HIGHER RATES A WALL STREET JOURNAL NEWS ROUNDUP THE OWNER OF A LOS ANGELES LANDMARK WON'T BE BUYING A NEW CADILLAC THIS YEAR INSTEAD MARVIN SAUL THE PROPRIETOR OF JUNIOR'S DELICATESSEN SAYS THAT HE'LL STICK WITH HIS THREEYEAROLD JAGUAR BUT EDMUND J WALL THE MANAGING DIRECTOR OF A SECURITIES FIRM IN ATLANTA WROTE A 31000 CHECK FOR THE FISHING BOAT OF HIS DREAMS ON THE VERY DAY PRESIDENT CLINTON SIGNED HIS NEW BUDGET PACKAGE INTO LAW HE PLANS TO SPEND LESS TIME WORKING AND MORE TIME FISHING WORKING HARD AND SAVING DOESN'T PAY HE SAYS IN THE WAKE OF THE NEW TAX LAW WHICH RAISES RATES FOR THE WEALTHY THE RICH ARE FRETTING ABOUT THEIR FINANCES IN INTERVIEWS WITH WALL STREET JOURNAL REPORTERS PEOPLE WITH BIG INCOMES DISCLOSED A VARIETY OF STRATEGIES FOR DEALING WITH THE BIGGER TAX BITE SOME PLAN TO CUT SPENDING AND CONTRIBUTIONS TO CHARITIES OTHERS EXPECT TO REDUCE SAVINGS AND INVESTMENTS AND SOME SAY THEY'LL JUST KEEP ON DOING WHAT THEY HAVE BEEN DOING AND LEAVE LESS MONEY TO THE KIDS MR SAUL 63 YEARS OLD WHO SERVES ABOUT 17000 CUSTOMERS WEEKLY AT HIS RESTAURANT SAYS THE TAX INCREASE WILL HAVE A TREMENDOUS IMPACT ON HIM MAKING HIM A LOT MORE PRUDENT IN HIS SPENDING AND SAVING HABITS ON HOLD ALONG WITH THE CADILLAC BUYING A BEACH HOUSE AFTER SELLING HIS SECOND HOME IN PALM SPRINGS THREE YEARS AGO MR SAUL HAD PLANNED TO INVEST IN OCEANFRONT PROPERTY SOME PEOPLE STARTED TAKING STEPS TO MINIMIZE THE TAX BLOW RIGHT AFTER THE PRESIDENTIAL ELECTION LAST FALL PATENT LITIGATOR GERALD HOSIER WHO WORKS OUT OF HIS ASPEN COLO HOME ON A CONTINGENCYFEE BASIS EARNED ABOUT 150 MILLION LAST YEAR ACCORDING TO AMERICAN LAWYER HE SAYS THE FIGURE WAS SO HIGH PARTLY BECAUSE HE PRESSED TO SETTLE SOME OF HIS CASES LATE IN THE YEAR SO THAT HE AND HIS CLIENTS COULD REPORT THE INCOME FOR 1992 MR HOSIER SAYS HE HAS ALREADY INVESTED MORE MONEY IN TAXFREE MUNICIPAL BONDS AND IN SOME PRIVATE DEALS THAT HAVE THE POTENTIAL TO PRODUCE LONGTERM CAPITAL GAINS HE ADDS THAT HE HAS HIRED MORE LAWYERS TO LIGHTEN HIS WORK LOAD HE SAYS HE'S LESS ENTHUSED ABOUT WORKING AND CAN DO BETTER BY PAYING ATTENTION TO HIS INVESTMENTS BUT HE NOTES THAT HIS LIFESTYLE WON'T CHANGE BECAUSE I'M NOT REALLY INCOME LIMITED I CAN'T SPEND WHAT I GENERATE OTHER PEOPLE SAY THEY DON'T MIND PAYING MORE WITH A HOT CHILDREN'S SHOW ON PUBLIC TELEVISION AND RELATED MERCHANDISE FLYING OFF THE SHELVES SHARI LEWIS KNOWS SHE'S GOING TO OWE MUCH HIGHER TAXES THIS IS COMING RIGHT AT A TIME WHEN I HAVE INCOME COMING IN AND MORE OF IT WILL BE GOING TO THE GOVERNMENT SAYS THE PUPPETEER BUT SHE ADDS I REALLY FEEL THAT WHAT CLINTON HAS DONE IS RIGHT I WORKED HARD TO GET HIM IN THERE SO I'M GOING TO WORK TO MAKE HIS WORK WORK MISS LEWIS HASN'T DRAFTED SPECIFIC PLANS WITH HER BUSINESS MANAGER BUT SHE'S ALREADY FAVORING A LONGTERM VIEW SINCE WE ARE DOING VERY WELL THIS IS A HOT TIME FOR US THERE WILL BE A STIMULUS TO PUT THE MONEY BACK INTO THE ECONOMY WHAT I'M GOING TO DO IS SIMPLY INVEST IN OUR BUSINESS SHE SAYS FOR EXAMPLE THAT SHE WILL HIRE MORE PEOPLEIT'S EITHER DO THAT OR GIVE IT TO THE GOVERNMENT WENDY'S INTERNATIONAL INC FOUNDER R DAVID THOMAS WHO JUST BOUGHT A LEXUS SAYS HE'LL THINK TWO OR THREE TIMES BEFORE GOING AHEAD WITH PLANS TO SPEND 40000 ON A DARK GREEN CADILLAC STS MR THOMAS WHO IS NOW SENIOR CHAIRMAN OF WENDY'S AND EARNED 743000 IN SALARY AND BONUSES LAST YEAR SAYS HE'LL ALSO CONSULT WITH HIS ACCOUNTANTS ON TAX SHELTERS I'M GOING TO DO EVERYTHING I CAN THE ACCOUNTANTS HAVE TO TELL ME WHAT WE CAN AND CAN'T DO UNDER THE NEW TAX LAW PEOPLE EARNING MORE THAN 200000 ANNUALLY WILL PAY AN AVERAGE OF 174 MORE IN TAXES THE TOP MARGINAL RATE WILL RISE TO 36 FROM 31 FOR COUPLES MAKING MORE THAN 140000 IN TAXABLE INCOME FOR THOSE MAKING MORE THAN 250000 ANNUALLY IT WILL RISE TO 396 DAVID GARFIELD A 55YEAROLD MEDICAL ONCOLOGIST AT PRESBYTERIAN ST LUKE'S HOSPITAL IN DENVER SAYS THAT HE AND HIS WIFE MYRNA A TRAVEL AGENT WILL HAVE TO DRAMATICALLY SCALE DOWN THEIR LIFESTYLE BECAUSE OF HIGHER TAXES AND MEDICARE CUTS THE GARFIELDS WHO HAVE TWO CHILDREN IN LAW SCHOOL AND A THIRD IN HIGH SCHOOL HAD PLANNED A CHRISTMAS TRIP TO COSTA RICA NOW THEY'LL GO TO MEXICO DR GARFIELD WHO PAID HIS WAY TO SAIGON AND HANOI LAST SPRING TO TEACH AT CANCER HOSPITALS IS CANCELING PLANS TO RETURN NEXT YEAR THE COUPLE ALSO PLANS TO REDUCE DONATIONS TO CHARITY 25 TO 50 NEXT YEAR MRS GARFIELD HAD HOPED TO RETIRE BUT NOW THE FAMILY NEEDS HER INCOME THEY FIGURE THAT IN TWO YEARS THEY'LL BE FORKING OUT AT LEAST 75000 IN TUITION FOR THEIR CHILDREN WE CAN DO IT BUT WE'RE GOING TO HAVE TO GO INTO OUR SAVINGS DR GARFIELD SAYS SOME AFFLUENT AMERICANS ARE CONSIDERING MAKING RADICAL CHANGES IN THEIR LIVES ROBERT E WILLARD A FINANCIAL PLANNER IN COLORADO SPRINGS COLO SAYS THAT SOME DOCTOR CLIENTS HAVE DISCUSSED ACCELERATING PLANS TO SELL THEIR PRACTICES WHILE SOME OLDER CORPORATE EXECUTIVES ARE CONTEMPLATING TAKING EARLY RETIREMENT AND MR WILLARD SAYS TWO SENIOR CORPORATE EXECUTIVES HE DOES WORK FOR ARE SERIOUSLY CONSIDERING DIVORCING EACH OTHER SOLELY TO CUT THEIR COMBINED TAX BILL SPARTA GROUP A PARSIPPANY NJ SPORTS MANAGEMENT FIRM THAT HAS BOSTON RED SOX PITCHER FRANK VIOLA AND SAN FRANCISCO GIANTS PITCHER BILL SWIFT AS CLIENTS IS BUYING MORE TAXFREE MUNICIPAL BONDS FOR ITS CLIENTS MOST OF OUR ATHLETES HAVE CONSERVATIVE PORTFOLIOS AND WE'RE PUTTING 75 OF THEIR INVESTMENTS THIS YEAR IN MUNICIPAL BONDS AND MUNICIPAL BOND FUNDS SAYS WILLIAM BOYD AN INVESTMENT ADVISER FOR THE FIRM SOME BASEBALL PLAYERS WILL FIND THEY OWE A FORTUNE IN TAXES NEXT APRIL 15 EVEN THOUGH THE GOVERNMENT WILL GIVE THEM TWO YEARS TO PAY MR BOYD ADDS BASEBALL PLAYERS ARE PAID FROM APRIL THROUGH OCTOBER SO THEY HAVE ALREADY RECEIVED 75 OF THEIR INCOME FOR THE YEAR WITHHELD AT THE OLD RATE THE SPORTS WORLD IS GOING TO BE IN A STATE OF SHOCK NEXT APRIL AGREES LEIGH STEINBERG A LAGUNA BEACH CALIF ATTORNEY FOR SAN FRANCISCO FORTYNINERS QUARTERBACK STEVE YOUNG AND OTHER FOOTBALL STARS IN ANTICIPATION OF HIGHER TAXES MOST SPORTS CONTRACTS WERE FRONTLOADED WITH BIG SALARY PAYOUTS THIS YEAR MR STEINBERG SAYS BUT THE RETROACTIVE NATURE OF THE TAX INCREASE WILL CAPTURE A PORTION OF THIS MONEY FOILING THE FANCY MOVES JERRY GALUTEN PRESIDENT OF SGD INTERNATIONAL CORP A BARTER ORGANIZATION BASED IN NEW YORK MAKES HIS MILLIONS BY ARRANGING INTERNATIONAL AND DOMESTIC COUNTERTRADE DEALS SUCH AS TRADING SHIPMENTS OF PLYWOOD FOR SHIPMENTS OF CANNED SOUP OR AIRCOURIER SERVICE FOR FUEL SHIPMENTS HE ISN'T WORRIED ABOUT HIGHER TAXES IF I MAKE AN EXTRA DEAL IN THE YEAR I'LL COVER THE TAXES HE SAYS IT SOUNDS LIKE IT'S GOING TO BE A PROBLEM BUT LIKE ANYTHING ELSE THE ACCOUNTANTS WILL FIND A WAY TO MINIMIZE TAXES HE ALSO DOUBTS THAT THE INCREASE WILL DISCOURAGE INITIATIVE WITH ENTREPRENEURIAL PEOPLE HE SAYS IT'S NOT ONLY THE MONEY THAT DRIVES THEM IT'S THE CHALLENGE AND THE STATUS BUT TJ RODGERS FOUNDER PRESIDENT AND CHIEF EXECUTIVE OF CYPRESS SEMICONDUCTOR CORP COMPLAINS THAT THE TAX INCREASES WILL SUCK MONEY OUT OF INVESTORS' POCKETS THAT OTHERWISE WOULD GO INTO INVESTMENTS THAT GET THE ECONOMY MOVING MR ROGERS SAYS THAT ALTOGETHER HE OWNS 99 STOCKS ALMOST ALL IN HIGHTECH COMPANIES TO RAISE MONEY FOR HIS OWN TAX BILL HE SAYS HE'LL PICK THREE OR FOUR THAT AREN'T PERFORMING AS WELL AS OTHERS AND SNUFF THEM BUT HE DOESN'T EXPECT THE INCREASES TO HAVE MUCH IMPACT ON HIM PERSONALLY I'VE GOT MORE MONEY THAN I NEED HE SAYS FOR JOHN J CURLEY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF GANNETT CO THE NEW TAX LAW WON'T MEAN MUCH CHANGE IN 1992 MR CURLEY'S SALARY WAS 800000 WITH A BONUS OF 500000 BUT HE ISN'T EXTRAVAGANT AND HAS BEEN SOCKING AWAY MONEY IN GANNETT STOCK OR GIVING IT AWAY TO CHARITY I NEVER HAVE SPENT AT A LEVEL THAT REQUIRES ME TO CUT BACK HE SAYS MR CURLEY ISN'T TAKING ANY SPECIAL MEASURES TO MINIMIZE THE BIGGER TAX BITE EITHER I SET UP VARIOUS AREAS OF INVESTMENTS TEN YEARS AGO HE SAYS IN SPRING 1987 I THOUGHT IT WAS SHOWTIME SO I MOVED MONEY OUT OF EQUITY MARKETS AND OVER TO TAXFREE MUNICIPAL BONDS I'VE JUST ADDED TO THOSE AREAS IN ADDITION TO MAJOR INVESTMENTS IN GANNETT STOCK AS FOR PAYING THE HIGHER TAXES MR CURLEY SAYS HE'S PREPARED THIS HAS BEEN COMING SINCE THE ELECTION I'LL PAY BY SAVING THE MONEY GOING FORWARD FROM EARNED INCOME AND JUST APPLY THAT TO THE TAXES IN LIEU OF INVESTMENT THAT MONEY WOULD HAVE GONE INTO INVESTMENT NOW IT'S GOING TO THE GOVERNMENT MICHAEL GROSSMAN THE 71YEAROLD CHAIRMAN EMERITUS OF GROSSMAN'S INC A HOMEIMPROVEMENT STORE CHAIN BASED IN BRAINTREE MASS SAYS HE HAS ALREADY INCREASED HIS INVESTMENTS IN TAXEXEMPT SECURITIES AND EXPECTS TO KEEP DOING SO SECOND HE SAYS I'M GOING TO LOOK INTO CHARITABLE CONTRIBUTIONS OF APPRECIATED PROPERTY HE NOTES THAT THE DEDUCTIONS BECOME MORE VALUABLE WITH A 40 TAX RATE THE FINAL THING I'M THINKING ABOUT HE SAYS IS GETTING IT OVER THE FENCE BY THAT I MEAN TRANSFERRING INCOMEPRODUCING ASSETS TO OTHER FAMILY MEMBERS AFTER THAT HE SAYS I'M GOING TO CONTINUE TO SKI AND PLAY TENNIS AND HOPE THE TAX INCREASE HELPS AMERICA SEE RELATED LETTER LETTERS TO THE EDITOR RICH REFUSE TO BE SACRIFICIAL LAMBS WSJ SEPT 2 1993 SEE RELATED LETTER LETTERS TO THE EDITOR TAX BITE VICTIMS WSJ SEPT 9 1993 9308130085 9309020123 YY93 MM09 9309020002 930816 REVIEW & OUTLOOK EDITORIAL AL GORE'S RIGHT TRACK LET US BE THE FIRST TO WHOLEHEARTEDLY SUPPORT THE VERY EARLIEST EFFORT OF VICE PRESIDENT GORE'S NATIONAL PERFORMANCE REVIEW WE ONLY HOPE THE VICE PRESIDENT WILL SUPPORT IT AS MUCH AS WE DO NEXT MONTH MR GORE'S OFFICE WILL RELEASE THE NATIONAL PERFORMANCE REVIEW A REPORT DETAILING HOW GOVERNMENT DEPARTMENTS CAN IMPROVE THEIR MANAGEMENT AND CUT COSTS THE EARLY EVIDENCE IS THAT IT MIGHT MAKE SOME BOLD WELCOME RECOMMENDATIONS BUT THERE ARE ALSO SIGNS THAT A BACKLASH FROM THE IRON TRIANGLE OF ENTRENCHED BELTWAY INTERESTS THAT RONALD REAGAN RAILED AGAINST MAY FLATTEN THE ADMINISTRATION'S INFANT EFFORTS LAST WEEK THE JOURNAL OF COMMERCE REPORTED THAT A DRAFT NATIONAL PERFORMANCE REVIEW REPORT HAD RECOMMENDED THE TOTAL DEREGULATION OF AMERICA'S MARITIME INDUSTRY THE REPORT SAYS THAT CURRENT POLICIES WHICH PROP UP THE SHIPPING INDUSTRY THROUGH SUBSIDIES PROTECTIONISM AND REGULATION PROVIDE OVERWHELMING EVIDENCE THAT REGULATION OF THIS INDUSTRY IS CREATING NOT ELIMINATING INEFFICIENCIES IN THE MARKETPLACE THE REPORT CALLED FOR A POLICY TIDAL WAVE THAT WOULD SWEEP AWAY A SERIES OF OUTDATED LAWS THAT HAVE CONTRIBUTED TO THE DECLINE OF THE MARITIME INDUSTRY AMONG THEM ARE THE CARGO PREFERENCE ACT WHICH REQUIRES THAT HALF OF US GOVERNMENT OCEAN CARGOES MOVE ON USFLAG SHIPS THE JONES ACT A NONSENSICAL LAW THAT ADDS TO THE TRADE DEFICIT BY EFFECTIVELY BLOCKING THE SALE OF ALASKAN OIL TO JAPAN AND FEDERAL SUBSIDIES TO USFLAG SHIPS THE REPORT ESTIMATED THAT SUCH ACTIONS WOULD SAVE TAXPAYERS 23 BILLION OVER THE NEXT DECADE AND WOULD FURTHER STIMULATE THE ECONOMY BY ABOUT 3 BILLION A YEAR WELL A COLLECTIVE SCREAM HAS GONE UP FROM THE BUSINESSASUSUAL CROWD THIS WE GOTTA STOP MICHAEL SACCO THE PRESIDENT OF AN ORGANIZATION OF 42 MARITIME UNIONS SAID THE PROPOSAL WAS ABSURD AND CANNOT BE TAKEN SERIOUSLY WITHIN HOURS DEMOCRATIC SENATOR ERNEST HOLLINGS AND FOUR OTHER SENATORIAL ALLIES OF THE MARITIME INTERESTS INTRODUCED LEGISLATION TO DELAY ANY DEREGULATION EFFORTS AMONG THIS CROWD IS LOUISIANA SENATOR JOHN BREAUX THE HEAD OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL WHICH HAS LONG TOUTED REINVENTING GOVERNMENT THE FEDERAL MARITIME COMMISSION WHICH WOULD SEE ITS INFLUENCE VANISH UNDER DEREGULATION FLEW INTO A TIZZY IT ISSUED A BLISTERING REPORT DEFENDING SUBSIDIES AND CALLING THE MARITIME INDUSTRY AN IMPERFECT MARKET UNSUITABLE FOR FURTHER COMPETITION THIS SPECIAL INTEREST BLITZKRIEG MAY ALREADY BE HAVING AN EFFECT MARK AARON A VICE PRESIDENT OF CSX OWNERS OF THE USFLAG CARRIER SEALAND TOLD US THAT MR GORE WAS ON THE VERGE OF EITHER DISAVOWING THE REPORT OR NOT APPROVING IT THE VICE PRESIDENT'S OFFICE WOULD ONLY SAY THAT NO DECISION HAS BEEN MADE YET MARITIME POLICY IS JUST A SLICE OF MR GORE'S REVIEW OF GOVERNMENT INEFFICIENCY BUT IT'S SYMBOLIC BECAUSE MR GORE'S EFFORTS HAVE THE POTENTIAL TO DRAMATICALLY IMPROVE GOVERNMENT HIS AIDES ARE SERIOUSLY THINKING OF TRANSFORMING THE TROUBLED FEDERAL AVIATION ADMINISTRATION INTO A QUASIGOVERNMENTAL CORPORATION WHICH COULD BETTER UPGRADE THE NATION'S OUTMODED AIRTRAFFIC CONTROL SYSTEM BUT FEW OF THESE REFORMS ARE LIKELY TO BE ENACTED BY A POLITICALLY WOBBLY PRESIDENCY IF A FEW MARITIME UNIONS THEIR CORPORATE ALLIES AND BELTWAY POLS CAN SPOOK THE ADMINISTRATION THERE ARE MORE SENATOR HOLLINGS WHERE THAT ONE CAME FROM ALL DEDICATED TO TOSSING MR GORE'S ENTIRE REFORM AGENDA INTO THE GRIDLOCK THE CLINTONITES SO DECRY RECALL THAT IN THE 1970S THE CARTER ADMINISTRATION ENHANCED ITS CREDIBILITY BY TAKING ON THE AIRLINE AND TRUCKING INDUSTRIES BOTH LONGTIME CONTRIBUTORS TO DEMOCRATIC CANDIDATES AND FORCED THEM TO ACCEPT DEREGULATION BOTH POLICIES HAVE PROVEN A BOON TO CONSUMERS AND A LASTING CREDIT FOR THE CARTER ADMINISTRATION IF THE CLINTONITES CAVE IN ON SOMETHING LIKE MARITIME REFORM THE ADMINISTRATION WILL START LOOKING LIKE SOME PRECARTER DEMOCRATIC THROWBACK AT THE MOMENT MR GORE IS ON A TRACK OF DEREGULATORY REFORM THAT WAS TRAVELED TO EXCELLENT EFFECT BY OTHER RECENT VICE PRESIDENTS WE HOPE LIKE THEM HE STAYS ON IT SEE RELATED LETTER LETTERS TO THE EDITOR DON'T KILL OUR MERCHANT MARINE SEPT 2 1993 9308160078 YY93 MM09 9309020134 930702 SEC OVERTURNS NASD SUSPENSION ON POSSIBLE BIAS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION OVERTURNED THE SIXMONTH SUSPENSION OF A BROOKLYN NY BROKERAGE FIRM CITING POSSIBLE BIAS BY MEMBERS OF THE DISCIPLINARY PANEL IN REVERSING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS EVEN THE SEC CONCEDED THAT ITS RULING IS UNUSUAL MOST APPEALS BASED ON ALLEGED BIAS ARE REJECTED THE COMMISSION SAID BECAUSE THE APPEALS TYPICALLY COMPLAIN THAT NASD DISCIPLINARY PANELS INCLUDE COMPETITORS OF THE FIRMS BEING DISCIPLINED UNTIL THIS CASE THE SEC HAD NEVER OVERTURNED AN NASD DISCIPLINARY ACTION BASED ON THE COMPOSITION OF A HEARING PANEL SAID JOHN PINTO THE NASD'S CHIEF COMPLIANCE OFFICER IT IS BEYOND BEING AN UNUSUAL OR RARE OCCURRENCE HE SAID ADDING THAT HE DOESN'T EXPECT THE RULING TO AFFECT OTHER CASES BECAUSE IT WAS SO CLOSELY SUITED TO THE FACTS IN THIS CASE IN THIS CASE DATEK SECURITIES CORP WAS ORDERED SUSPENDED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AFTER AN NASD DISCIPLINARY PANEL FOUND THAT THE FIRM HAD TRADED STOCKS FOR ITS OWN ACCOUNT ON A NASDAQ SYSTEM DESIGNED FOR SMALL INVESTORS' ORDERS OF 1000 SHARES OR FEWER THE THREEMEMBER DISCIPLINARY PANEL INCLUDED TWO PEOPLE WHOSE EMPLOYERS WERE MARKETMAKERS IN SOME OF THE STOCKS TRADED BY DATEK OVER THE SMALLORDER EXECUTION SYSTEM THE MARKETMAKERS SMITH BARNEY HARRIS UPHAM & CO AND SHEARSON LEHMAN BROTHERS INC WERE INVOLVED IN 115 OF THE 690 QUESTIONABLE TRADES EXECUTED BY DATEK IN ONE MONTH DATEK'S LAWYERS OBJECTED TO THE PANEL AT THE DISCIPLINARY PROCEEDING AND IN AN APPEAL TO THE NASD THE NASD NOT ONLY UPHELD THE FINDINGS BUT INCREASED THE SUSPENSION ORDERED BY THE PANEL FROM THREE MONTHS TO SIX MONTHS EACH FOR DATEK AND ITS SENIOR TRADER SHELDON MASCHLER OF STATEN ISLAND NY THE SEC YESTERDAY REVERSED THE PENALTY AND THE FINDING A PERSON CANNOT BE PERMITTED TO PARTICIPATE ON AN ADJUDICATORY HEARING PANEL IN ANY PROCEEDING IN WHICH THAT PERSON IS EMPLOYED MAY BE PERCEIVED TO BE A VICTIM OF OR A PARTICIPANT IN CONDUCT THAT IS THE BASIS FOR THE ALLEGED WRONGDOING THE SEC WROTE LAWYER DAVID ZISSER OF DENVER WHO OFTEN REPRESENTS SECURITIES FIRMS IN NASD ACTIONS CALLED THE SEC RULING UNUSUAL AND SOMEWHAT HEARTENING I CAN ASSURE YOU IT DOESN'T HAPPEN VERY MUCH HE SAID THE COMMISSION REALLY IS NOT VERY SUSCEPTIBLE TO CLAIMS OF BIAS IN AN ARTICLE JULY 2 ABOUT THE SECURITIES AND EXCHANGE COMMISSION OVERTURNING A SIXMONTH SUSPENSION OF DATEK SECURITIES CORP THE CHARGES AGAINST THE FIRM WERE INCORRECTLY STATED THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN THE RULING OVERTURNED BY THE SEC FOUND THAT DATEK IMPROPERLY SPLIT UP CUSTOMER ORDERS TO EVADE A 1000SHARE LIMIT ON A CERTAIN TRADING SYSTEM IT HAD BEEN INCORRECTLY REPORTED THAT THE BROOKLYN NYBASED FIRM WAS SUSPENDED FOR IMPROPER TRADING IN ITS OWN ACCOUNT 9309010189 930901 TUESDAY'S MARKETS BOND PRICES FINISH MIXED STOCKS CLIMB BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL BOND PRICES WERE MIXED AFTER A RETAIL SALES REPORT INDICATED A SLACKENING ECONOMY STOCKS BUOYED BY THE DROP IN LONGBOND INTEREST RATES GAINED AS SOME INDEXES HIT NEW HIGHS THE DOLLAR STRENGTHENED THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 726 POINTS TO 365125 LESS THAN A POINT SHY OF A RECORD STANDARD & POOR'S 500STOCK INDEX ROSE 166 TO 46356 AN ALLTIME HIGH AND THE NASDAQ COMPOSITE INDEX JUMPED 546 TO 74284 ALSO A RECORD THE DECLINE IN THE INTEREST RATE ON THE 30YEAR BOND ALSO PUSHED THE DOW JONES UTILITY AVERAGE UP 125 POINTS TO 25646 ITS SECOND STRAIGHT HIGH BONDS FADED AFTER THE COMMERCE DEPARTMENT'S REVISED ESTIMATE OF SECONDQUARTER ECONOMIC GROWTH CAME OUT HIGHER THAN EXPECTED BUT LONGBOND PRICES REBOUNDED IN THE AFTERNOON PARTICULARLY AFTER A RETAIL INDUSTRY SERVICE SAID RETAIL SALES FELL 11 IN AUGUST FROM JULY IT SUGGESTS THAT BACKTOSCHOOL IS NOT AS STRONG A SEASON AS ONE MIGHT HAVE HOPED FOR SAID NEIL SOSS FIRST BOSTON'S CHIEF ECONOMIST AND OF COURSE BACKTOSCHOOL IS FIRST IN THE RUN TO CHRISTMAS OVERSEAS GERMAN STOCKS JUMPED 12 TO THEIR HIGHEST LEVEL SINCE MARCH 1990 ON THE PROSPECT OF LOWER INTEREST RATES FRENCH SHARES ROSE 05 TO ANOTHER RECORD US INVESTORS ARE STILL AGGRESSIVE BUYERS OF GERMAN EQUITIES SAID VOLKER BRANDT HEAD OF RESEARCH AT BHF BANK IN FRANKFURT WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 027 TO 11302 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 241 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1192 ISSUES ADVANCED AND 788 DECLINED BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY 1/4 POINT OR ABOUT 250 FOR EACH 1000 FACE AMOUNT TO YIELD 610 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16765 MARKS AND 10475 YEN COMPARED WITH 16724 MARKS AND 10380 YEN MONDAY 9309010188 930901 WHO'S NEWS SCHERER HEALTHCARE INC SCHERER HEALTHCARE INC ATLANTA DENISE CUMMINS DEMICK 34 YEARS OLD WAS ELECTED A DIRECTOR OF THIS HEALTHCARE SERVICES COMPANY EXPANDING THE BOARD TO SEVEN MS DEMICK IS SCHERER'S VICE PRESIDENT AND CONTROLLER 9309010187 930901 WHO'S NEWS RAYCHEM CORP RAYCHEM CORP MENLO PARK CALIF ISAAC STEIN 46 YEARS OLD WAS ELECTED TO THE BOARD OF THIS MATERIALSSCIENCE COMPANY MR STEIN FORMER CHAIRMAN AND ACTING PRESIDENT OF ESPRIT DE CORP FILLS A VACANCY ON THE EIGHTMEMBER BOARD LEFT BY THE DEATH OF ROBERT G ENGEL 9309010185 930901 WHO'S NEWS ANDERSEN CONSULTING ANDERSEN CONSULTING CHICAGO THIS MANAGEMENT AND TECHNOLOGY CONSULTING CONCERN NAMED TERRY NEILL 48 YEARS OLD MANAGING PARTNER OF ITS WORLDWIDE CHANGE MANAGEMENT SERVICES PRACTICE WHICH FOCUSES ON ORGANIZATIONAL CHANGE EMPLOYEE TRAINING AND TECHNOLOGY USE AT COMPANIES PREVIOUSLY MANAGING PARTNER OF THE UK GOVERNMENT AND SERVICES DIVISION MR NEILL SUCCEEDS CHARLES WINSLOW WHO IS NOW MANAGING PARTNER OF THE AMERICAS CHANGE MANAGEMENT SERVICES UNIT 9309010184 930901 TEXACO FINDS NATURAL GAS WHITE PLAINS NY TEXACO INC SAID ITS AFFILIATE DISCOVERED NATURAL GAS OFF OF THE COAST OF VARNA BULGARIA THE WILDCAT WELL GALATA NO 1 FLOWED 34 MILLION CUBIC FEET OF GAS A DAY DRILLED TO A TOTAL DEPTH OF 8727 FEET THE WELL IS THE FIRST OF A PLANNED EXPLORATORY PROGRAM BEGUN IN NOVEMBER 1991 SAID THE OIL COMPANY THE TEXACO AFFILIATE TEXACO EXPLORATION OFFSHORE BULGARIA LTD AND ITS PARTNERS HAVE ABOUT 500000 ACRES IN THIS OFFSHORE BLOCK TEXACO EXPLORATION THE OPERATOR OWNS A 20 WORKING INTEREST ENTERPRISE OIL EXPLORATION LTD HAS 20 AND TWO OTHER BULGARIAN CONCERNS THE REST 9309010183 930901 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK THIS TRAVEL AND FINANCIAL SERVICES COMPANY NAMED JAMES A FIRESTONE 38 YEARS OLD PRESIDENT OF ITS TRAVELERS CHEQUE GROUP PREVIOUSLY EXECUTIVE VICE PRESIDENT OF THE SMALL BUSINESS AND CORPORATE SERVICES ARM OF TRAVEL RELATED SERVICES MR FIRESTONE SUCCEEDS R CRAIG HOENSHELL 49 WHO IS PRESIDENT OF TRAVEL RELATED SERVICES INTERNATIONAL 9309010182 930901 WHO'S NEWS NATIONAL WESTMINSTER BANK PLC NATIONAL WESTMINSTER BANK PLC LONDON THIS BANKING AND FINANCIAL SERVICES COMPANY ELECTED MICHAEL R GALLAGHER 47 YEARS OLD TO THE BOARD OF ITS NATIONAL WESTMINSTER BANCORP UNIT WHICH OPERATES IN NEW YORK AND NEW JERSEY INCREASING THE BOARD TO 17 MR GALLAGHER IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF L&F PRODUCTS A MAKER OF HOUSEHOLD PERSONALCARE AND DOITYOURSELF PRODUCTS 9309010181 930901 WHO'S NEWS AETRIUM INC AETRIUM INC ST PAUL MINN DARNELL L BOEHM 44 YEARS OLD A DIRECTOR AND FORMER FINANCIAL CONSULTANT AT THIS CONCERN WAS NAMED ITS CHIEF FINANCIAL OFFICER A POST HE PREVIOUSLY HELD ON A PARTTIME BASIS AETRIUM MAKES HANDLING EQUIPMENT USED IN TESTING AND MANUFACTURING INTEGRATED CIRCUITS 9309010180 930901 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI CHARLES P HUDSON JR 39 YEARS OLD FORMERLY PRESIDENT OF THE PARADE OF SHOES DIVISION OF PUBLICLY TRADED J BAKER INC OF CANTON MASS WAS NAMED PRESIDENT OF THIS SPECIALTY RETAILER'S FOOTWEAR RETAILING OPERATIONS THE APPOINTMENT IS EFFECTIVE OCT 31 HE SUCCEEDS CHARLES D GOORMAN 49 WHO NAMED PRESIDENT OF THE FOOTWEAR DIVISION'S EASY SPIRIT RETAIL OPERATIONS MR GOORMAN SUCCEEDS KEVIN BURKE 38 WHO WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF THE 54STORE EASY SPIRIT CHAIN OF SHOE STORES 9309010179 930901 DIVIDEND NEWS PAGES INC PAGES INC DUBLIN OHIO RECEIVED ITS SHAREHOLDERS' APPROVAL OF A 5FOR4 STOCK SPLIT NO FRACTIONAL SHARES WILL BE ISSUED THE RECORD DATE IS OCT 15 WITH CERTIFICATES TO BE MAILED SHORTLY THEREAFTER THE COMPANY'S DIRECTORS HAD APPROVED THE PLAN IN JUNE SUBJECT TO SHAREHOLDER APPROVAL THE COMPANY IS A SUPPLIER OF INCENTIVEAWARDS PROGRAMS 9309010178 930901 WHO'S NEWS STANHOME REASSIGNS DIAZ RESTORES TOWER AS PRESIDENT CEO WESTFIELD MASS DIRECTORS OF STANHOME INC SEEKING TO RETURN TO PROFITABILITY REMOVED ALEJANDRO DIAZ VARGAS AS THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND REPLACED HIM WITH THE MAN HE SUCCEEDED STANHOME A MAKER OF HOUSEHOLD PRODUCTS AND FIGURINES SAID IT TAPPED ITS RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER HL BILL TOWER TO RETURN TEMPORARILY TO THE POSITIONS MR TOWER 60 YEARS OLD IS CURRENTLY CHAIRMAN OF THE STANHOME BOARD MR DIAZ WILL REMAIN WITH THE COMPANY AS PRESIDENT OF THE ITS WORLDWIDE DIRECTSELLING GROUP WHICH HAS HAD FLAT SALES RECENTLY THE GROUP HOLDS INTHEHOME PARTIES IN WHICH NONEMPLOYEES TYPICALLY HOUSEWIVES INVITE FRIENDS TO VIEW AND BUY STANHOME PRODUCTS THE DIRECTSALES GROUP HAS BEEN HURT RECENTLY BY POOR ECONOMIC CONDITIONS AND UNFAVORABLE FOREIGN EXCHANGE RATES STANHOME SAID MR DIAZ 48 WAS PRESIDENT OF THE GROUP BEFORE BECOMING STANHOME'S CHIEF EXECUTIVE OFFICER IN 1990 FOR THE SECOND QUARTER ENDED JUNE 30 STANHOME POSTED A LOSS OF 12 MILLION OR SIX CENTS A SHARE ON REVENUE OF 1872 MILLION THE LOSS INCLUDED AN 115 MILLION RESTRUCTURING CHARGE RELATED TO A 10 REDUCTION OF ITS WORLDWIDE STAFF OF 4500 STANHOME SAID THE CUTBACKS WERE DESIGNED TO ACHIEVE SUBSTANTIAL COST SAVINGS THROUGH STRATEGIC CONSOLIDATION OF VARIOUS PARTS OF THE BUSINESS IN THE 1992 SECOND QUARTER THE COMPANY HAD NET INCOME OF 114 MILLION OR 57 CENTS A SHARE ON REVENUE OF 1848 MILLION MESSRS TOWER AND DIAZ COULDN'T BE REACHED FOR COMMENT IN A NEWS RELEASE MR TOWER SAID THAT THE PRIMARY COMMITMENT OF THE BOARD OF DIRECTORS IS TO BUILD THE VALUE OF STANHOME FOR OUR SHAREHOLDERS STANHOME WAS HALTED FOR TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY THE COMPANY CLOSED IN COMPOSITE TRADING AT 2775 A SHARE UP 25 CENTS 9309010177 930901 SWISS DOMESTIC PRODUCT BERN SWITZERLAND SWITZERLAND'S GROSS DOMESTIC PRODUCT CONTRACTED A REAL 02 IN THE SECOND QUARTER FROM THE FIRST QUARTER ON A SEASONALLY ADJUSTED ANNUALIZED BASIS THE FEDERAL OFFICE FOR ECONOMIC QUESTIONS ANNOUNCED THE LATEST FIGURE REPRESENTED A SLOWDOWN OF THE ECONOMY'S CONTRACTION THE FEDERAL AGENCY SAID IN THE FIRST QUARTER THE GDP HAD CONTRACTED 14 FROM THE FOURTH QUARTER OF LAST YEAR WHEN THE SHRINKAGE WAS 2 9309010176 930901 WHO'S NEWS STERLING BANCORP STERLING BANCORP NEW YORK THIS BANK HOLDING COMPANY ELECTED HENRY J HUMPHREYS 65 YEARS OLD A DIRECTOR OF STERLING NATIONAL BANK & TRUST CO INCREASING THE UNIT'S BOARD TO 13 MEMBERS MR HUMPHREYS IS EXECUTIVE DIRECTOR OF THE AMERICAN ASSOCIATION OF THE SOVEREIGN MILITARY ORDER OF MALTA AND A FORMER VICE PRESIDENT OF BANKERS TRUST CO 9309010175 930901 MORRISON KNUDSEN ACQUISITION BOISE IDAHO MORRISON KNUDSEN CORP SAID IT ACQUIRED ARROWSMITH POWER SYSTEMS INC OF SIMI VALLEY CALIF FOR MORE THAN 10 MILLION IN MORRISON COMMON STOCK THE ENGINEERING AND CONSTRUCTION CONCERN SAID IT BOUGHT ARROWSMITH FROM KDT INDUSTRIES INC OF AUSTIN TEXAS ARROWSMITH PRODUCES TURBOCHARGERS FOR RAILROAD LOCOMOTIVES 9309010174 930901 NORTHERN STATES REDEMPTION MINNEAPOLIS NORTHERN STATES POWER CO SAID IT WILL REDEEM ALL 350000 SHARES OF ITS CUMULATIVE PREFERRED STOCK 784 SERIES ON OCT 30 REDEMPTION WILL BE AT 10312 A SHARE PLUS 653 CENTS A SHARE FOR ACCRUED DIVIDENDS REDEMPTION WON'T AFFECT DIVIDENDS PAYABLE OCT 15 TO STOCK OF RECORD SEPT 30 THE UTILITY SAID 9309010173 930901 WHO'S NEWS M/ACOM INC M/ACOM INC WAKEFIELD MASS THIS MAKER OF SEMICONDUCTORS FOR THE TELECOMMUNICATIONS INDUSTRY NAMED LARRY L MIHALCHIK 46 YEARS OLD CHIEF FINANCIAL OFFICER MR MIHALCHIK SUCCEEDS ERNEST L GODSHALK 47 WHO RESIGNED IN JUNE TO PURSUE OTHER INTERESTS THE CONCERN SAID MR MIHALCHIK WAS MOST RECENTLY FINANCE CHIEF AND A DIRECTOR AT LOYALTY MANAGEMENT GROUP INC OF BOSTON 9309010172 930901 WHO'S NEWS SOUTHERN PACIFIC RAIL CORP SOUTHERN PACIFIC RAIL CORP SAN FRANCISCO THIS TRANSPORTATION COMPANY SAID D MICHAEL MOHAN 48 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF ITS SOUTHERN PACIFIC LINES UNIT RESIGNED TO PURSUE OTHER OPPORTUNITIES THE POSITION OF CHIEF OPERATING OFFICER WILL BE ELIMINATED THE COMPANY SAID 9309010171 930901 CORRECTIONS & AMPLIFICATIONS ADVANCED TECHNOLOGY LABORATORIES INC BASED IN BOTHELL WASH SAID IT WOULD REDUCE ITS WORLDWIDE WORK FORCE BY 240 PEOPLE OR 11 AS PART OF A RESTRUCTURING AN ARTICLE LAST WEDNESDAY INCORRECTLY REFERRED TO THE COMPANY AS ADVANCED MEDICAL LABORATORIES INC 9309010170 930901 BOSTON FIVE BANCORP BOSTON BOSTON FIVE BANCORP INC SHAREHOLDERS APPROVED ITS PREVIOUSLY ANNOUNCED ACQUISITION BY CITIZENS FINANCIAL GROUP INC FOR 13 A SHARE OR 95 MILLION CITIZENS IS A PROVIDENCE RI UNIT OF ROYAL BANK OF SCOTLAND GROUP PLC THE BOSTON BANKING CONCERN SAID IT EXPECTS TO COMPLETE THE TRANSACTION WITHIN 60 DAYS 9309010169 930901 WHO'S NEWS MARQUEST MEDICAL PRODUCTS MARQUEST MEDICAL PRODUCTS INC ENGLEWOOD COLO THIS MEDICAL PRODUCTS MAKER SAID FOUR NEW DIRECTORS WERE ELECTED TO ITS BOARD AT THE COMPANY'S ANNUAL MEETING AUG 26 INCREASING THE BOARD TO SEVEN MEMBERS THREE OF THE FOUR NEW DIRECTORS ARE OFFICERS OF SCHERER HEALTHCARE INC ATLANTA GA ROBERT D TUCKER 59YEAROLD CHAIRMAN AND CHIEF EXECUTIVE WILLIAM J THOMPSON 59 PRESIDENT AND CHIEF OPERATING OFFICER AND DENISE C DEMICK 39 VICE PRESIDENT AND CONTROLLER SCHERER IN EXCHANGE FOR 65 MILLION IN FINANCING EARLIER THIS YEAR HOLDS WARRANTS TO BUY 65 OF MARQUEST'S COMMON SHARES AT 75 CENTS A SHARE AND THE RIGHT TO A MAJORITY ON THE BOARD SAID CHARLES M OBERMEYER PRESIDENT AND CHIEF EXECUTIVE OF MARQUEST ALSO ELECTED WAS ARTHUR LIPPER III 61 CHAIRMAN OF BRITISH FAR EAST HOLDINGS LTD 9309010168 930901 HONEYWELL TOLD TO PAY LITTON 12 BILLION SUM JURY FINDS PATENT VIOLATION ON NAVIGATION DEVICE RULING ISN'T FINAL YET BY THOMAS R KING AND JAMES P MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL A FEDERAL COURT JURY IN LOS ANGELES ORDERED HONEYWELL INC TO PAY 12 BILLION TO LITTON INDUSTRIES INC FOR VIOLATING A LITTON PATENT ON AN AIRPLANEGUIDANCE DEVICE THE HUGE AWARD STEMS FROM A PATENT INFRINGEMENT LAWSUIT BROUGHT BY LITTON IN MARCH 1990 THE DAMAGES WERE AWARDED FOR LOST PROFITS DUE TO HONEYWELL'S WILLFUL INFRINGEMENT OF A LITTON PATENT RELATING TO THE MANUFACTURE OF THE PRODUCT LITTON SAID HONEYWELL BASED IN MINNEAPOLIS SAID IT WAS DISAPPOINTED AND OUTRAGED BY THE JURY'S FINDINGS WHICH IT SAID WERE UNSUPPORTED BY THE FACTS THE MAKER OF ELECTRONIC CONTROL EQUIPMENT STRESSED THAT THE JURY'S FINDINGS AREN'T THE END OF THE CASE BECAUSE THE JUDGE HAS YET TO FORMALLY ENTER A JUDGMENT THE TRIAL WILL CONCLUDE WHEN THE COURT HAS HEARD ADDITIONAL EVIDENCE AND RESOLVED LEGAL ISSUES THAT COULD REDUCE OR ELIMINATE THE JURY VERDICT THE COMPANY SAID HONEYWELL ADDED THAT IT WILL APPEAL ANY SIGNIFICANT JUDGMENT AGAINST IT THAT MIGHT ULTIMATELY EMERGE THE COURT NOW WILL CONDUCT A HEARING ON HONEYWELL'S CLAIMS THAT THE PATENT WAS IMPROPERLY OBTAINED DUE TO ALLEGED INEQUITABLE CONDUCT ON THE PART OF LITTON A BEVERLY HILLS CALIF PROVIDER OF ADVANCED ELECTRONIC AND DEFENSE SYSTEMS INDUSTRIAL AUTOMATION SYSTEMS AND RESOURCE EXPLORATION SERVICES THE PRODUCT INVOLVED IN THE CASE IS A RING LASER GYROSCOPE A GUIDANCE DEVICE THAT MONITORS CHANGES IN AN AIRCRAFT'S MOVEMENT WITH A SYSTEM OF LASERS AND MIRRORS THAT HONEYWELL SAYS IT INVENTED AND PATENTED IN THE 1960S LITTON FILED SUIT THREE YEARS AGO ALLEGING THAT HONEYWELL'S PRODUCT VIOLATES A LITTON PATENT ON THE PROCESS USED TO COAT THE MIRRORS IN HONEYWELL'S GYROSCOPE LITTON ALSO ALLEGED IN THE SUIT THAT HONEYWELL WHICH HOLDS A COMMANDING SHARE OF THE MARKET FOR INERTIAL NAVIGATION SYSTEMS HAD SOLD THE GYROSCOPES AT BELOW COST IN VIOLATION OF FEDERAL ANTITRUST LAWS HONEYWELL COUNTERSUED IN DECEMBER 1990 ALLEGING THAT LITTON WAS TRYING TO MONOPOLIZE THE MARKETS FOR INERTIAL SYSTEMS AND OF INTERFERING WITH HONEYWELL'S RELATIONSHIPS WITH SUPPLIERS NO TRIAL DATE HAS BEEN SET FOR THE ANTITRUST PORTION OF THE SUIT TRADING IN BOTH COMPANIES WAS HALTED ON THE NEW YORK STOCK EXCHANGE IN MIDAFTERNOON PENDING DISCLOSURE OF THE JURY'S VERDICT AND DIDN'T RESUME AT THE LAST TRADE LITTON SHARES WERE UP 1 AT 6650 AND HONEYWELL WAS UP 875 CENTS AT 38875 LATE YESTERDAY MOODY'S INVESTORS SERVICE PUT HONEYWELL'S APPROXIMATELY 540 MILLION IN SENIOR DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE THE RATING COMPANY ALSO SAID IT WILL CONTINUE A PREVIOUSLY ANNOUNCED REVIEW OF LITTON'S DEBT INCORPORATING USE OF THE PROCEEDS IF ANY THAT LITTON MAY RECEIVE MOODY'S HAD PUT LITTON'S DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE EARLIER THIS SUMMER WE HAVE INVESTED SIGNIFICANT FUNDS IN THE DEVELOPMENT AND PRODUCTION OF THIS LITTON TECHNOLOGY WHICH THE COMPANY HAS EVERY INTENTION TO PROTECT SAID NORMAN L ROBERTS LITTON'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL HE SAID THE JURY'S VERDICT WAS CLEARLY JUSTIFIED BY THE FACTS PRESENTED IN THE LITIGATION LITTON SAID THE JURY ALSO RULED THAT HONEYWELL INTENTIONALLY INDUCED A LITTON LICENSEE TO BREACH ITS AGREEMENT WITH LITTON AND THAT IT INTERFERED WITH LITTON'S PROSPECTIVE ECONOMIC ADVANTAGE THE RULING YESTERDAY DOESN'T HAVE ANY IMPACT ON OUR ABILITY TO CONTINUE SERVING CUSTOMERS HONEYWELL SAID THERE IS SOME IRONY IN THE JURY'S FINDING AGAINST HONEYWELL IN AN INTELLECTUALPROPERTY CASE THE COMPANY HAS PROFITED HANDSOMELY FROM AGGRESSIVE DEFENSE OF ITS OWN PATENT RIGHTS AFTER PURSUING PATENTINFRINGEMENT LITIGATION AGAINST JAPANESE CAMERA MAKER MINOLTA CAMERA CO FOR YEARS HONEYWELL PREVAILED IN A TRIAL AND MINOLTA THEN SETTLED THE HIGHPROFILE CASE FOR 1275 MILLION OTHER CAMERA CONCERNS SUBSEQUENTLY AGREED TO SETTLE RAISING THE TOTAL AMOUNT HONEYWELL RECEIVED TO MORE THAN 300 MILLION THAT CASE WAS DIFFERENT A HONEYWELL SPOKESWOMAN SAID LITTON IS A WEAK COMPETITOR TRYING TO RECOVER IN THE COURTROOM WHAT IT COULDN'T IN THE COMPETITIVE MARKETPLACE SHE SAID HONEYWELL CONSIDERS THE LITTON PATENT INVALID SHE ADDED AND WE NEVER INFRINGED IT IN ANY CASE 9309010167 930901 WHO'S NEWS CELTRIX PHARMACEUTICALS INC CELTRIX PHARMACEUTICALS INC SANTA CLARA CALIF BRUCE B PHARRISS 56 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OF THIS BIOPHARMACEUTICAL CONCERN CITING HEALTH PROBLEMS HE REMAINS A DIRECTOR THE COMPANY'S PRESIDENT DALE A STRINGELLOW 48 HAS ASSUMED THE DUTIES OF THE CHIEF EXECUTIVE AND ROGER H SALQUIST 51 A DIRECTOR HAS BECOME CHAIRMAN 9309010165 930901 FINANCING BUSINESS HEALTH CARE REIT INC HEALTH CARE REIT INC TOLEDO OHIO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 25 MILLION COMMON SHARES A COMPANY SPOKESWOMAN SAID THE REAL ESTATE INVESTMENT TRUST EXPECTS TO USE NET PROCEEDS OF THE OFFERING TO INVEST IN HEALTHCARE FACILITIES AND PENDING SUCH USE TO REDUCE BANK DEBT AND MAKE SHORTTERM INVESTMENTS THE COMPANY SAID ALEX BROWN & SONS INC IS THE LEAD MANAGER FOR THE PROPOSED OFFERING HEALTH CARE REIT CURRENTLY HAS ABOUT 88 MILLION COMMON SHARES OUTSTANDING 9309010164 930901 COMMUNITY HEALTH ACQUISITION HOUSTON COMMUNITY HEALTH SYSTEMS INC SAID IT AGREED TO ACQUIRE MOBERLY REGIONAL MEDICAL CENTER TERMS OF THE AGREEMENT WERE NOT DISCLOSED MOBERLY A 120BED ACUTECARE HOSPITAL IS 35 MILES NORTH OF COLUMBIA MO AND IS OWNED BY MIDWEST ADVENTIST HEALTH SERVICES CORP OF MERRIAM KAN COMMUNITY HEALTH SYSTEMS OPERATES AND MANAGES A TOTAL OF 19 HOSPITALS IN SEVERAL SOUTHWESTERN AND SOUTHEASTERN STATES A FINAL AGREEMENT IS EXPECTED WITHIN THREE MONTHS 9309010163 930901 WHO'S NEWS TRANS WORLD MUSIC CORP TRANS WORLD MUSIC CORP ALBANY NY THIS MUSIC AND VIDEO STORE OPERATOR SAID ITS CHIEF FINANCIAL OFFICER JEFFREY A JONES 46 YEARS OLD RESIGNED MR JONES WHO JOINED TRANS WORLD IN 1990 AND HELPED THE COMPANY REFINANCE ITS DEBT SAID HE LEFT TO PURSUE MORE CHALLENGING OPPORTUNITIES UNTIL MR JONES'S SUCCESSOR IS FOUND ROBERT J HIGGINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL HANDLE THE DUTIES OF INVESTOR AND BANKING RELATIONS WHILE JOHN SULLIVAN CONTROLLER ALSO WILL ASSUME ADDITIONAL FINANCIAL RESPONSIBILITIES 9309010161 930901 FINANCING BUSINESS LAFARGE CORP LAFARGE CORP RESTON VA SAID IT FILED A REGISTRATION STATEMENT FOR THE SALE OF 675 MILLION COMMON SHARES THE CEMENT PRODUER SAID IT PLANS TO SELL 355 MILLION SHARES IN THE US AND 145 MILLION SHARES IN CANADA WHILE ITS MAJORITY OWNER LAFARGE COPPEE SA OF PARIS WILL PURCHASE THE REMAINDER AT CURRENT PRICES THE SALES WOULD GENERATE ABOUT 119 MILLION MORGAN STANLEY & CO AND DILLON READ & CO ARE THE MANAGING UNDERWRITERS FOR THE PROPOSED US OFFERING WOOD GUNDY INC MIDLAND WALWYN CAPITAL INC AND RBC DOMINION SECURITIES INC ARE UNDERWRITERS OF THE CONCURRENT CANADIAN OFFERING LAFARGE HAS ABOUT 596 MILLION SHARES OUTSTANDING 9309010160 930901 WHO'S NEWS ESKIMO PIE CORP ESKIMO PIE CORP RICHMOND VA THIS FROZEN NOVELTY MAKER NAMED JOHN T HERZOG 31 YEARS OLD VICE PRESIDENT SECRETARY AND TREASURER MR HERZOG WHO CONTINUES AS CHIEF FINANCIAL OFFICER SUCCEEDS WILLIAM M FARISS JR 67 WHO IS RETIRING BUT WILL CONTINUE AS A DIRECTOR 9309010159 930901 FINANCING BUSINESS ICN PHARMACEUTICALS INC ICN PHARMACEUTICALS INC COSTA MESA CALIF THE MAKER OF PHARMACEUTICAL PRODUCTS AND ICN BIOMEDICALS INC ANNOUNCED THE ISSUANCE OF TWO CLASSES OF NONCONVERTIBLE PREFERRED SHARES IN ICN BIOMEDICALS VALUED AT 62 MILLION THE MOVES ARE AIMED AT STRENGTHENING ICN BIOMEDICALS' BALANCE SHEETS THE TWO TRANSACTIONS WILL REDUCE ICN PHARMACEUTICALS' OWNERSHIP OF ICN BIOMEDICALS COMMON STOCK TO 70 FROM 88 ICN PHARMACEUTICALS RECEIVED 300000 SHARES OF A NEW SERIES A NONCONVERTIBLE PREFERRED STOCK VALUED AT 30 MILLION IN RETURN ICN PHARMACEUTICALS GAVE ICN BIOMEDICALS 4983606 COMMON SHARES OF ICN BIOMEDICALS THAT IT OWNED ICN BIOMEDICALS ALSO CANCELED 11 MILLION OF DEBT OWED TO ICN PHARMACEUTICALS IN ADDITION ICN PHARMACEUTICALS RECEIVED 390000 SHARES OF A NEW SERIES B NONCOVERTIBLE PREFERRED STOCK VALUED AT 32 MILLION IN RETURN ICN PHARMACEUTICALS DELIVERED TO ICN BIOMEDICALS 8384843 SHARES OF COMMON STOCK THAT IT OWNED IN ICN BIOMEDICALS 9309010158 930901 WHO'S NEWS IBERIA'S MIGUEL AGUILO IS OUSTED FROM POST BY STATE PARENT FIRM A WALL STREET JOURNAL NEWS ROUNDUP IBERIA AIR LINES' PARENT STATE HOLDING COMPANY INSTITUTO NACIONAL DE INDUSTRIA IS TIGHTENING ITS GRIP ON THE STRUGGLING SPANISH CARRIER BY FORCING THE CHAIRMAN MIGUEL AGUILO OUT OF HIS JOB INI ANNOUNCED THAT JAVIER SALAS PRESIDENT OF THE HOLDING COMPANY'S TENEO DIVISION WHICH IS RESPONSIBLE FOR IBERIA WILL PERSONALLY TAKE ON THE DUTIES AS CHAIRMAN OF EUROPE'S FOURTHLARGEST AIRLINE TENEO VICE PRESIDENT MIGUEL CUENCA WILL ASSUME THE POST OF VICE PRESIDENT AT THE AIRLINE WHICH IS BASED IN MADRID FOR A DAYTODAY MANAGER INI IS GOING BACK TO THE SAME SOURCE THAT SUPPLIED MR AGUILO THE HOLDING COMPANY IS APPOINTING AS PRESIDENTIAL DELEGATE A SORT OF MANAGING DIRECTOR JUAN SAEC ELECIDO CHAIRMAN OF INI'S SHIPBUILDING DIVISION THE SAME POST MR AGUILO HEADED BEFORE COMING TO IBERIA THREE YEARS AGO NEITHER INI NOR IBERIA DISCLOSED WHETHER MR AGUILO HAS ANY PLANS FOR THE FUTURE BUT AN INI SPOKESMAN SAID HE WASN'T OFFERED A POST WITHIN THE STATE CONGLOMERATE MR AGUILO COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR IBERIA FELIX ORTEGA SAID THE CHANGE AT THE TOP GREW OUT OF INI'S DESIRE TO BECOME MORE INVOLVED WITH RUNNING THE AIRLINE THEY WANT TO SHOW THE OUTSIDE WORLD THAT INI AND THE SPANISH GOVERNMENT ARE BEHIND IBERIA MR ORTEGA SAID THAT WILL MAKE IT MUCH EASIER TO DEAL WITH INTERNATIONAL BANKERS DESPITE THE TRAFFIC BOOST GAINED FROM THE SUMMER OLYMPICS IN BARCELONA IBERIA STILL REPORTED A NET LOSS OF 34 BILLION PESETAS 2513 MILLION IN 1992 BARELY NARROWER THAN THE NET LOSS OF 358 BILLION PESETAS IN 1991 THIS YEAR THE AIRLINE APPEARS SET FOR ANOTHER BIG LOSS SO FAR RACKING UP A LOSS OF 24 BILLION PESETAS FOR THE FIRST EIGHT MONTHS MEANWHILE THE COMPANY CARRIES A HIGH DEBT BURDEN A LEGACY OF AGGRESSIVE FLEET AND ROUTE EXPANSION IN THE LATE 1980S 9309010157 930901 CARETENDERS SELLS A SUBSIDIARY LOUISVILLE KY CARETENDERS HEALTHCORP SAID IT SOLD ITS HEALTHCARE REVIEW CORP UNIT TO NATIONAL HEALTH SERVICES INC A SUBSIDIARY OF PIONEER FINANCIAL SERVICES INC CARETENDERS RECEIVED 12 MILLION FOR ITS 80 INTEREST IN HRC WITH THE POTENTIAL TO RECEIVE AS MUCH AS AN ADDITIONAL 428000 IN CONTINGENT PAYMENTS THROUGH 1997 BY HRC CARETENDERS SAID IT WILL USE THE PROCEEDS TO REDUCE DEBT UNDER THE COMPANY'S LINE OF CREDIT AND TO DEVELOP ADULT DAYCARE OPERATIONS 9309010156 930901 FINANCING BUSINESS FREMONT GENERAL CORP FREMONT GENERAL CORP SANTA MONICA CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 250 MILLION OF ZEROCOUPON NOTES DUE 2013 THE OFFERING WOULD BE UNDERWRITTEN BY MERRILL LYNCH & CO 9309010155 930901 FINANCING BUSINESS ROBERTS PHARMACEUTICAL CORP ROBERTS PHARMACEUTICAL CORP EATONTOWN NJ REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF TWO MILLION NEWLY ISSUED SHARES THE REGISTRATION ALSO COVERS ROBERTS'S PLAN TO SELL AN ADDITIONAL 800000 SHARES TO YAMANOUCHI PHARMACEUTICAL CO A TRANSACTION THAT WILL ROUGHLY MAINTAIN THE TOKYO COMPANY'S HEFTY ONETHIRD STAKE IN THE COMPANY AFTER THE PUBLIC OFFERING ROBERTS SAID PROCEEDS FROM THE OFFERING AND THE SALE TO YAMANOUCHI WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING REPAYMENT OF DEBT RELATED TO PRODUCT ACQUISITIONS WORKING CAPITAL AND FUTURE ACQUISITIONS 9309010154 930901 MARKETING BRIEF NOTED NEWSPAPERS THE CHICAGO SUNTIMES AND LA RAZA NEWSPAPERS WILL PUBLISH THE LA RAZA SUNDAY MAGAZINE A SPANISHLANGUAGE PUBLICATION IT WILL MAKE ITS DEBUT IN THE SUNDAY SUNTIMES THIS WEEKEND AND BE DISTRIBUTED TO TARGETED ZIP CODES IN AND AROUND CHICAGO 9309010153 930901 ADVOCACY GROUP ACCUSES ALLSTATE OF BIAS IN LOWINCOME AND MINORITY MARKETS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN ADVOCACY GROUP FOR LOWINCOME AND MINORITY HOMEOWNERS ACCUSED ALLSTATE CORP OF CONSISTENTLY DISCRIMINATING AGAINST SUCH PEOPLE IN ITS HOMEINSURANCE PRACTICES TESTING BY THE GROUP THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN IN 14 CITIES AND ANALYSIS OF ALLSTATE SALES OFFICES IN 17 CITIES SHOWED THE INSURER AS BLATANTLY VIOLATING FAIR HOUSING AND INSURANCE LAWS SAID MAUDE HURD ACORN'S PRESIDENT ACORN CALLED ON STATE INSURANCE COMMISSIONERS TO CONDUCT THE FIRST TARGETED MULTISTATE EXAMINATION OF MARKET CONDUCT THE INQUIRY WOULD COVER ALLSTATE'S ACTIONS IN 16 STATES EARLY THIS YEAR ACORN RELEASED A REPORT CHARGING INSURANCE COMPANIES WITH SYSTEMATIC DISCRIMINATION AGAINST MINORITIES IN 13 LARGE CITIES BUT DIDN'T NAME INSURANCE COMPANIES ACORN REPRESENTATIVES HAVE SINCE MET WITH ALLSTATE OFFICIALS TO DISCUSS THE REDLINING PROBLEM AND ALLSTATE HAS BEEN ONE OF SEVERAL INSURERS CITED SINCE THEN BY ACORN AND OTHERS AS SHOWING BIAS AGAINST MINORITIES AND OTHER PEOPLE IN LOWINCOME NEIGHBORHOODS ALLSTATE WAS SINGLED OUT SAID STEUART PITTMAN THE GROUP'S NATIONAL CAMPAIGN DIRECTOR BECAUSE IT SAYS IT'S THE LARGEST URBANAREA INSURER HAS ANNOUNCED A PLAN OF CUTTING BACK ITS LEASTPROFITABLE BUSINESS AND IS THE FOCUS OF MANY COMPLAINTS LODGED WITH ACORN OFFICES WHILE REDLINING IS AN INDUSTRYWIDE PROBLEM MAKING ALLSTATE AN EXAMPLE CAN HAVE A BIG IMPACT ON THE REST OF THE INDUSTRY HE ADDED ALLSTATE IS MAJORITYOWNED BY SEARS ROEBUCK & CO AN ALLSTATE SPOKESMAN SAID THAT WITHOUT HAVING SEEN THE FULL REPORT WE ARE NOT REALLY IN A POSITION TO COMMENT ON THE SPECIFIC PIECES OF WHAT THEY SAY THE SPOKESMAN ADDED HOWEVER THAT ALLSTATE IS ONE OF THE LEADING WRITERS OF HOMEOWNERS INSURANCE IN THE URBAN MARKETPLACE WE ARE CONSTANTLY WORKING WITH RESPONSIBLE COMMUNITY GROUPS TO AMONG OTHER THINGS IDENTIFY FACTORS DRIVING UP COSTS OF INSURANCE WE ARE ABSOLUTELY COMMITTED TO THE URBAN MARKET IN ITS NEW REPORT ACORN SAID TEST CALLS TO ALLSTATE AGENTS IN 14 CITIES SHOWED A CONSISTENT PATTERN OF DISCRIMINATION AGAINST LOWINCOME AND MINORITY HOMEOWNERS THEY WERE REFUSED COVERAGE FOR A VARIETY OF REASONS SOME INVOLVING UNDERWRITING GUIDELINES SUCH AS MINIMUM PROPERTY VALUES WHICH EFFECTIVELY EXCLUDE COVERAGE FOR INNERCITY PROPERTIES ACORN SAID COVERAGE THAT WAS OFFERED WAS OFTEN ONLY FOR SUBSTANDARD POLICIES AND WAS CONSISTENTLY AT MUCH HIGHER RATES THAN THOSE CHARGED IN UPPERINCOME LOCATIONS THE COMMUNITY ACTIVIST GROUP SAID INSURANCE REGULATORS HAVE BEEN ASLEEP AT THE SWITCH MS HURD SAID IN PHILADELPHIA FOR INSTANCE NO TEST CALLER COULD OBTAIN AN ALLSTATE QUOTE ON ANY KIND OF INSURANCE IN THE CITY'S LOWINCOME AREAS CALLERS WERE VARIOUSLY TOLD THAT ALLSTATE NO LONGER INSURES HOUSES WITH FLAT ROOFS OR ANY HOME VALUED AT LESS THAN 55000 OR THAT THE AGENT WOULD GET BACK TO THE CALLER BUT NEVER DID OR WERE REFERRED TO THREE INDEPENDENT AGENTS OF 11 CALLS TO ALLSTATE AGENTS ON HOUSES IN LOWINCOME AREAS OF ATLANTA QUOTES WERE REFUSED FOR SEVEN OF THE PROPERTIES RATES QUOTED IN ATLANTA AVERAGED 880 PER THOUSAND DOLLARS OF COVERAGE IN LOWINCOME AREAS 459 IN UPPERINCOME URBAN AREAS AND 322 IN THE SUBURBS ACORN SAID THAT IN A RECENT STOCKOFFERING PROSPECTUS ALLSTATE SAID THAT AFTER RECENT RAPID MARKET GROWTH IT MUST REDUCE BUSINESS IN LESSPROFITABLE AREAS WHICH ACORN CONTENDED MEANS INNER CITIES THE ACORN REPORT SHOWED THAT IN MINNESOTA ALLSTATE'S HOMEOWNER POLICIES DECLINED 9 IN INTEGRATED AND MINORITY ZIP CODES BETWEEN 1987 AND 1993 BUT ROSE 11 IN MOSTLY WHITE ZIP CODES ALLSTATE HAS ALSO ADDED NEARLY FIVE TIMES MORE SALES OFFICES IN THE SUBURBS STUDIED THAN IN THE CITIES IN THE PAST SIX YEARS AND URBANAREA SALES OFFICES ARE SELDOM LOCATED IN LOWINCOME AREAS ACORN SAID ONLY 242 OR 16 OF METROPOLITANAREA ALLSTATE SALES OFFICES HAVE ADDRESSES WITHIN THE CITY LIMITS ACORN SAID 9309010152 930901 SINGAPORE CAMPAIGNS AGGRESSIVELY FOR STOCK INVESTORS BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL NO WONDER THE OLD MAN IN THE INVEST SINGAPORE ADVERTISEMENT IS SMILING A FULLPAGE PHOTO IN THE SINGAPORE STRAITS TIMES NEWSPAPER SHOWS HIM SUDDENLY DISCOVERING THE MAGIC OF STOCKS IF I OWN SHARES I OWN A PART OF THE COMPANY HE BEAMS TO SOMEONE ON THE OTHER END OF A PAYPHONE ISN'T THAT GREAT IT SURE IS JUDGING BY THE GOVERNMENTSPONSORED SMALL PRINT NEXT TO THE PHOTO WHEN THE COMPANY MAKES MONEY YOU MAKE MONEY OF COURSE THERE WILL BE RISKS WHEN A COMPANY DOES BADLY THE VALUE OF ITS SHARES WILL DROP THE AD IS PART OF THE LATEST INSTALLMENT IN SINGAPORE'S CONTINUING QUEST TO PUT ALL THE MONEY ITS CITIZENS HAVE SAVED TO WORK IF THIS LATEST CAMPAIGN TO ENTICE CITIZENS TO BUY STOCKS OF SINGAPOREAN COMPANIES IS A SUCCESS IT COULD MEAN FAT GAINS NOT ONLY FOR THE CITIZEN INVESTORS BUT FOR THE MANY FOREIGN MONEY MANAGERS WITH SUBSTANTIAL SUMS IN THE SINGAPORE STOCK MARKET BUT THE ADVERTISING CAMPAIGN IS DRAWING THE IRE OF SOME INVESTORS IF WE WROTE ANYTHING LIKE THAT WE'D BE CRUCIFIED SAYS AN EXECUTIVE AT A HONG KONGBASED REGIONAL BROKERAGE PARTICULARLY IN ASIA HE SAYS THE ASSERTION THAT A COMPANY'S SHARE PERFORMANCE IS NECESSARILY DETERMINED BY ITS PROFITS COULD BE MISLEADING NO PROOF OF THAT IS BETTER THAN EVENTS AT SINGAPORE'S OWN STOCK EXCHANGE DURING THE PAST MONTH TWO BIG SHIPYARDS REPORTED BAD SIXMONTH EARNINGS AND THEIR SHARES ARE SOARING AS OF THIS YEAR'S FIRST QUARTER SINGAPOREANS HAD STASHED ABOUT S53 BILLION US3303 BILLION IN THE CENTRAL PROVIDENT FUND THEIR MANDATORY NATIONAL SOCIALSECURITY PLAN THE FUND IS ITSELF A LARGE INVESTOR BUT ITS PARTICIPANTS TRADITIONALLY COULD ONLY USE THEIR ACCOUNTS FOR A FEW CONSERVATIVE INVESTMENTS SUCH AS HOUSING AND EDUCATION THE GOVERNMENT ALSO ALLOWED SINGAPOREANS WITH MORE THAN 34000 IN THEIR CENTRAL PROVIDENT FUND ACCOUNTS TO INVEST 40 OF THE REMAINING AMOUNT IN APPROVED BLUECHIP STOCKS AS LONG AS THEY DIDN'T TAKE THE PROFITS OUT OF THE PLAN BUT UNDER REVAMPED RULES ANNOUNCED IN EARLY AUGUST SINGAPOREANS SOON WILL BE ABLE TO PUT MORE CASH IN THE STOCK MARKET AS OF OCT 1 ACCOUNTHOLDERS CAN INVEST TWICE AS MUCH IN THE STOCK MARKET AND THEY CAN BUY ANY STOCK LISTED ON THE EXCHANGE'S MAIN BOARD INVESTORS ULTIMATELY WILL BE ABLE TO WITHDRAW THEIR PROFITS AND OFFSET THEIR LOSSES AGAINST FUTURE PROFITS AS PART OF THE EFFORT TO ENCOURAGE STOCK OWNERSHIP THE GOVERNMENT HAS LAUNCHED A MONTHLONG AD CAMPAIGN TO TEACH PEOPLE ABOUT STOCKS AND ANALYSTS NOTE THAT BANKS IN THE REPUBLIC ARE HOSTING THEIR OWN BIGTENT SHAREFAIRS ALL THE FUN IS PART OF SINGAPORE'S BROADER EFFORT TO BECOME A BIT MORE FINANCIALLY DARING THE LEADERSHIP HERE BASICALLY FEELS THAT IN THE NEXT LAP OF ECONOMIC DEVELOPMENT SINGAPORE NEEDS TWO KEY INGREDIENTS SAYS CHIA YEW BOON SOUTHEAST ASIA RESEARCH DIRECTOR FOR STANDARD CHARTERED SECURITIES GROUP LTD IN SINGAPORE ONE IS MORE ENTREPRENEURSHIP AND THE OTHER IS MORE PARTICIPATION IN THE HIGH GROWTH ECONOMIES OF THE REGION A STRONGER STOCK MARKET SHOULD HELP FINANCE BOTH GOALS ANALYSTS ADD THAT THE NEW RULES MIGHT DRAW SOME MONEY AWAY FROM THE REPUBLIC'S SOARING RESIDENTIALPROPERTY MARKET AND INTO A TIDE OF PRIVATIZATIONS DURING THE NEXT FIVE YEARS STARTING WITH THE SALE OF A STAKE IN SINGAPORE TELECOMMUNICATIONS PTE EXPECTED BY YEAR END BUT DON'T BET ON RIDING A WAVE OF SINGAPOREAN CASH INTO STOCKS THIS IS A CONSERVATIVE PLACE AFTER ALL ALTHOUGH THE STRAITS TIMES INDUSTRIAL INDEX'S 308 GAIN SO FAR THIS YEAR HAS BEEN GOOD NEWS THE STOCK MARKET STILL HAS QUITE A RACY IMAGE WHICH WOULD SCARE MORE CONSERVATIVE INVESTORS SAYS ONE LOCAL ANALYST EVIDENCE OF THE AVERSION OF S17 BILLION WHICH COULD HAVE GONE INTO STOCKS AFTER THE LAST LIBERALIZATION OF CENTRAL PROVIDENT FUND RULES IN 1987 ONLY S17 BILLION DID SAYS SCHRODERS SECURITIES LTD SINGAPORE'S STOCK MARKET IS ALSO THE VICTIM OF ITS OWN NARROW RANGE OF LISTED COMPANIES A LIMITATION THAT TENDS TO DAMP THE ATTRACTIONS OF INVESTING IN SHARES THAT STILL LOOK CHEAP I'VE DONE A LOT OF SLICING AND DICING AT ANY RATIOS YOU'D CARE TO LOOK AT SAYS DAVID KOWITZ EXECUTIVE DIRECTOR OF GOLDMAN SACHS ASIA LTD IN AGGREGATE TERMS THE SINGAPORE MARKET LOOKS PRETTY ATTRACTIVE TO LOCAL INVESTORS ITS AVERAGE EARNINGS YIELD THE EARNINGS PER SHARE DIVIDED BY THE SHARE'S PRICE IS PARTICULARLY STRONG COMPARED WITH THE LOW DEPOSIT RATES AVAILABLE IN THE COUNTRY'S BANKS AND ADDS MR KOWITZ THE ECONOMY'S DEPENDENCE ON EXPORTS MEANS IT'S CLOSELY TIED TO A RECOVERY IN THE DEVELOPED WORLD BUT OTHERS NOTE THAT SINGAPORE'S STOCK MARKET IS LADEN WITH COMPANIES DEPENDENT ON SALES OF THEIR PRODUCTS IN THE US THE STOCK EXCHANGE IS RIFE WITH COMPUTER DISK DRIVE MANUFACTURERS THAT SUPPLY THE US COMPUTER INDUSTRY THE DEMAND FOR THOSE DEVICES ALREADY IS SLUMPING AMID GROWING OVERSUPPLY SAYS SCHRODERS HENCE THE FOCUS ON TWO BRIGHT LIGHTS BANKS AND SHIPYARDS SHARES OF BANKS ARE HOT BETS WITH UNITED OVERSEAS BANK'S ANNOUNCEMENT LATE LAST MONTH OF SURPRISINGLY STRONG FIRSTHALF EARNINGS GOOD BANK PROFITS CAN PORTEND WELL FOR THE REST OF A MARKET BECAUSE BANKS' LOAN ACTIVITIES ARE TIED TO THE BROAD ECONOMY BUT UOB'S 30 JUMP IN PROFIT FROM THE YEAREARLIER PERIOD DOESN'T PORTEND MUCH FOR ANYTHING OUTSIDE THE BANK MOST OF THE GROWTH CAME FROM PROFITS MADE TRADING FOREIGN EXCHANGE AND STOCKS THE STOCK IS TRADING AT ABOUT S920 UP NEARLY 18 FOR THE MONTH SINGAPOREANS SEEM TO BE DRAWING MORE FUNDAMENTAL ENCOURAGEMENT FROM THE SHIPYARD SECTOR JURONG SHIPYARDS POSTED A 13 DROP IN FIRSTHALF EARNINGS COMPARED WITH THE YEAREARLIER PERIOD THAT WAS A GOOD PERFORMANCE COMPARED WITH THE 26 DROP IN FIRST HALF EARNINGS POSTED BY SEMBAWANG SHIPYARD LTD JURONG HAS GAINED 204 TO 1240 SINCE THE BEGINNING OF AUGUST SEMBAWANG HAS JUMPED NEARLY 9 TO S1220 DURING THE SAME TIME THE WORST IS OVER FOR THAT INDUSTRY SAYS ANALYST LOKE WAI YIN AT SMITH NEW COURT SECURITIES LTD WITH WESTERN ECONOMIES REBOUNDING THE PRICE OF OIL IS SET TO RISEMEANING THAT THE FREIGHT CHARGES EARNED BY OIL TANKERS SHOULD RISE TOO AND AT THE TOP OF THAT PILE STAND SINGAPORE'S SHIPYARDS WHICH REPAIR OIL TANKERS MS LOKE THINKS SHARES OF JURONG ARE A BIT TOO EXPENSIVE BUT EVEN THE FORWARD POINT OF VIEW THAT BRINGS HER TO THAT CONCLUSION MAY BE WHAT SINGAPORE'S FIRSTTIME SHARE BUYERS WILL FIND THEY NEED 9309010151 930901 KODAK DEBT REDEMPTION ROCHESTER NY EASTMAN KODAK CO WILL REDEEM ITS ZERO COUPON EXCHANGEABLE SENIOR DEBENTURES DUE 2006 THAT WERE EXCHANGEABLE INTO COMMON STOCK OF SUN MICROSYSTEMS INC THE REDEMPTION DATE IS SEPT 20 1993 THE PRICE IS 47857 FOR EACH 1000 DEBENTURE THAT AMOUNT REPRESENTS THE REDEMPTION PRICE OF 42727 AND ACCRUED INTEREST OF 5130 THE CURRENT VALUE OF THE DEBENTURES IS 123 MILLION WHEREAS THE VALUE AT MATURITY WOULD BE 256 MILLION PAYING AGENT FOR THE REDEMPTION IS THE BANK OF NEW YORK 9309010149 930901 WHO'S NEWS TRITON GROUP LTD TRITON GROUP LTD SAN DIEGO RICHARD R TARTRE AND MICHAEL E CAHR WERE ELECTED TO THE BOARD MR TARTRE 55 YEARS OLD IS A FOUNDER AND MANAGING DIRECTOR OF EDEN FINANCIAL GROUP AND FUNDMARK INVESTMENT CO MR CAHR 53 IS VENTURE GROUP MANAGER FOR ALLSTATE VENTURE CAPITAL A DIVISION OF ALLSTATE INSURANCE CO THE APPOINTMENTS EXPAND TRITON'S BOARD BY TWO TO FOUR 9309010148 930901 SIEMENS WAIVES RIGHT TO MATCH EATON OFFER FOR WESTINGHOUSE UNIT A WALL STREET JOURNAL ROUNDUP SIEMENS AG OF GERMANY WAIVED ITS RIGHT TO MATCH AN OFFER TO BUY WESTINGHOUSE ELECTRIC CORP'S DISTRIBUTION AND CONTROL UNIT CLEARING THE WAY FOR EATON CORP OF CLEVELAND TO BUY THE UNIT FOR 11 BILLION SIEMENS HAD BEEN GRANTED THE RIGHT OF FIRST REFUSAL IN A 1989 CONTRACT WITH WESTINGHOUSE IN WHICH SIEMENS WAS PURCHASING WESTINGHOUSE'S CIRCUIT BREAKERS FOR SALE TO THE EUROPEAN MARKET WESTINGHOUSE PITTSBURGH SAID IT EXPECTS TO COMPLETE THE SALE OF THE UNIT WHICH MAKES CIRCUIT BREAKERS AND OTHER ELECTRICAL DEVICES BY YEAR'S END FOLLOWING GOVERNMENT REVIEWS WESTINGHOUSE WILL USE THE PROCEEDS TO REDUCE ITS HEFTY DEBT LOAD THE SALE TO EATON WAS ANNOUNCED AUG 11 9309010147 930901 LETTERS TO THE EDITOR IT'S GOOD MARKETING NOT A MORAL ISSUE I READ WITH SOME DISMAY YOUR AUG 4 ARTICLE CONCERNING LOWALCOHOL DRINKS CONTROVERSIAL COCKTAILS AS A MEMBER OF THE INDUSTRY I WOULD LIKE TO SET THE RECORD STRAIGHT WHILE IT IS TRUE THAT LOWALCOHOL PRODUCTS ACCOUNT FOR THE SINGLE LARGEST GROWTH AREA OF OUR INDUSTRY SINCE WHEN IS IT A CRIME TO DEVELOP A SUCCESSFUL PRODUCT THE INDUSTRY PROMOTES AND URGES RESPONSIBLE USE OF OUR PRODUCTS AT ALL TIMES BY ALL PEOPLE WE COSPONSOR PUBLIC SERVICE ADVERTISING AGAINST DRINKING AND DRIVING AND SUPPORT STUDENTS AGAINST DRUNK DRIVING SADD IN HIGH SCHOOLS AND BACCHUS ON COLLEGE CAMPUSES THE FACT IS UNDERAGE DRINKING HAS GONE DOWN NOT UP WHO IS REALLY AT FAULT WHEN ALCOHOLIC BEVERAGES ARE SOLD TO UNDERAGE KIDS IS IT THE INDUSTRY FOR PRODUCING A LEGAL PRODUCT OR THE SHOPKEEPER WHO SELLS THAT PRODUCT WITHOUT CHECKING FOR PROPER ID IS IT THE INDUSTRY THAT CONTRIBUTES SIGNIFICANTLY TO THE TAX COFFERS OR THE ADULT WHO LOOKS THE OTHER WAY IT APPEARS THE MANUFACTURERS HAVE SOFTENED THEIR PRODUCTS TO MAKE THEM MORE APPEALING TO MORE CUSTOMERS AND ALSO HAVE TRIED TO BROADEN THEIR DISTRIBUTION NORMALLY THIS IS TERMED GOOD MARKETING NOT SLIMY MARKETING PRACTICE AS ONE CRITIC PUT IT YOUR ARTICLE IS A FORUM FOR KNEEJERK ANTIALCOHOL ADVOCATES TO ATTACK PRODUCTS AND VENT THEIR OPINIONS WITHOUT PROVIDING FACTS OR DATA IN SUPPORT OF THEIR VIEWS I READ WITH MUCH INTEREST AND CONCERN YOUR ARTICLE ABOUT LOWALCOHOL COCKTAILS SINCE I WORK FOR THE INDUSTRY I KNOW THAT WE ARE MARKETING OUR PRODUCTS TO RESPONSIBLE ADULTS NOT THE UNDERAGE THESE YOUNG ADULTS ARE FROM THE PEPSI GENERATION AND PREFER A LIGHTER DRINK WITH MORE FLAVOR THAN KICK I'M ALSO VERY CONCERNED ABOUT THE IMPLICATION THAT ALCOHOL IS EASILY AVAILABLE TO UNDERAGE CONSUMERS PARENTS WHO DISCOVER THAT THEIR CHILDREN ARE BUYING ALCOHOL SHOULD MAKE INVESTIGATIONS TO FIND THE SOURCE AND EVEN PROSECUTE IF NECESSARY OUR CHILDREN MUST BE AWARE THAT THEY ARE BREAKING THE LAW AND THAT THEIR PARENTS WILL NOT TOLERATE SUCH BEHAVIOR 9309010144 930901 INTERNATIONAL US HOPES TO PLAY KEY ROLE ENSURING THAT ISRAELPALESTINIAN PACT SURVIVES BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SET TO PLAY A CENTRAL ROLE IN ENSURING THAT THE SWEEPING PLAN BY ISRAELIS AND PALESTINIANS TO END THEIR SEEMINGLY INTRACTABLE DISPUTE IS FORGED INTO REALITY FIRST THE US WILL PROD BOTH SIDES TO HAMMER OUT DETAILS OF THEIR ACCORD UNDER WHICH ISRAEL AS A FIRST STEP TOWARD ALLOWING PALESTINIAN AUTONOMY WILL TURN OVER GOVERNING AUTHORITY IN GAZA AND THE WEST BANK TOWN OF JERICHO THE ADMINISTRATION ALSO PLANS TO COORDINATE AN INTERNATIONAL EFFORT TO RAISE HUNDREDS OF MILLIONS OF DOLLARS THAT PALESTINIANS WILL NEED TO GOVERN THE OCCUPIED TERRITORIES AND IT IS EXPECTED TO HELP KEEP UP THE MOMENTUM FOR PEACE BY MAKING SURE THAT ISRAELISYRIAN PEACE TALKS ALSO MAKE PROGRESS FINALLY WITH ISRAEL NOW OPENLY DEALING WITH THE PALESTINE LIBERATION ORGANIZATION THE US MUST REDEFINE ITS RELATIONS WITH THAT GROUP WITH WHICH IT SUSPENDED TALKS IN 1990 AFTER A TERRORIST RAID IN ISRAEL BY A PLO FACTION CALLING THE ISRAELIPALESTINIAN PLAN A CONCEPTUAL BREAKTHROUGH SECRETARY OF STATE WARREN CHRISTOPHER SAID THE US LOOKS FORWARD TO MOVING THAT INTO REALITY A SENIOR ARAB DIPLOMAT IN WASHINGTON ADDED THERE ARE SO MANY MINUTE DETAILS THAT NEED TO BE NEGOTIATED WE'LL NEED AN AMERICAN ROLE IN THIS REGARD THE BREAKTHROUGH OFFERS THE WHITE HOUSE A CHANCE TO PRESIDE OVER A RARE FOREIGNPOLICY VICTORY PRESIDENT CLINTON INHERITED A MESS FROM THE BUSH ADMINISTRATION IN BOSNIA WHICH CONTINUES TO FESTER PARTLY BECAUSE OF US INACTION BUT IN THE MIDEAST WHERE MR CHRISTOPHER HAS SHOWN SKILLED DIPLOMACY THE PRESIDENT MAY BE ABLE TO COMPLETE THE PEACE PROCESS INITIATED BY MR BUSH A SENIOR ISRAELI OFFICIAL INDICATED THAT THE ISRAELIPALESTINIAN DECLARATION OF PRINCIPLES FOR PALESTINIAN SELFRULE IS ESSENTIALLY COMPLETED WHAT IS HOLDING UP THE SIGNING WHICH COULD COME NEXT WEEK ARE NEGOTIATIONS OVER WHO WILL SIGN THIS ESSENTIALLY INVOLVES THE ISSUE OF MUTUAL ISRAELIPLO RECOGNITION SENIOR OFFICIALS FROM ISRAEL AND THE PLO COULD VERY WELL COME TO WASHINGTON TO SIGN THE DOCUMENT A BREATHTAKING ABOUTFACE THAT WAS UNIMAGINABLE ONLY WEEKS AGO US AND MIDEAST OFFICIALS ESTIMATE THAT THE PALESTINIAN AUTHORITY THAT ULTIMATELY GOVERNS GAZA AND LARGE PARTS OF THE WEST BANK WILL NEED ABOUT 250 MILLION YEARLY TO RUN HOSPITALS SCHOOLS AND OTHER FACILITIES FURTHER REBUILDING POVERTYRIDDEN AND OVERCROWDED GAZA COULD REQUIRE AS MUCH AS 2 BILLION ACCORDING TO ONE ISRAELI ESTIMATE GAZA IS A HOTBED OF PALESTINIAN RADICALISM AND IMPROVING THE LIVES OF ITS RESIDENTS WOULD BE AN IMPORTANT STEP TOWARD DEMONSTRATING THE BENEFITS OF PEACE WITH ISRAEL WASHINGTON IS EXPECTED TO MAKE SOME DIRECT CONTRIBUTION BUT MOST OF THE FUNDS WILL HAVE TO BE FOUND ELSEWHERE SUCH AS IN EUROPE MIDEAST ANALYSTS SAY SAUDI ARABIA AND THE OTHER OILRICH PERSIAN GULF STATES THAT ONCE PROVIDED HUNDREDS OF MILLIONS OF DOLLARS TO THE PLO CUT OFF THEIR LARGESS AFTER THAT ORGANIZATION SIDED WITH SADDAM HUSSEIN DURING THE PERSIAN GULF WAR THEY CONTINUE TO REFUSE TO SEND ANY FUNDS DIRECTLY TO THE PLO MR CHRISTOPHER INDICATED YESTERDAY THAT THE US WAS MOVING TOWARD REESTABLISHING LINKS WITH THE PLO A SENIOR US OFFICIAL ADDED THAT ONCE ISRAEL RECOGNIZED THE PLO IT WOULD MAKE LITTLE SENSE FOR WASHINGTON WHICH PLAYS THE ROLE OF HONEST BROKER TO NOT FOLLOW SUIT MIDEAST EXPERTS ALSO BELIEVE IT IS IMPORTANT FOR THE US TO PRESS FOR PROGRESS IN THE SEPARATE NEGOTIATIONS UNDER WAY IN WASHINGTON BETWEEN ISRAEL AND SYRIA WILLIAM QUANDT WHO WAS THE CARTER ADMINISTRATION'S TOP MIDEAST EXPERT SAID THAT BECAUSE SYRIA AND ISRAEL LACK THE NUMEROUS BACKCHANNEL CONTACTS THAT EXIST BETWEEN ISRAEL AND PALESTINIANS MR CHRISTOPHER NEEDS TO PLAY A MAJOR ROLE WITHOUT PROGRESS IN THE ISRAELSYRIA TALKS THE WHOLE ISRAELIPALESTINIAN BREAKTHROUGH WILL BE HANGING OUT THERE EXPOSED AND VULNERABLE WARNED MR QUANDT CURRENTLY AT THE BROOKINGS INSTITUTION MR CHRISTOPHER ALSO NEEDS TO PROD ISRAEL BECAUSE THOUGH PRIME MINISTER YITZHAK RABIN IS EAGER FOR A SETTLEMENT WITH SYRIA THERE MAY BE POLITICAL LIMITS TO THE NUMBER OF MOVES HE CAN MAKE AT ONE TIME ISRAELI HARDLINERS ALREADY ARE COMPLAINING LOUDLY ABOUT MR RABIN'S DECISION TO MOVE QUICKLY TOWARD PARTIAL AUTONOMY FOR THE PALESTINIANS FOLLOWING THESE STEPS EVEN PARTIAL WITHDRAWAL FROM THE GOLAN HEIGHTS AND SYRIA IS DEMANDING FULL WITHDRAWAL WOULD BE DIFFICULT FOR SOME ISRAELIS TO STOMACH 9309010143 930901 LONGWOOD BUYS GATES UNIT FLORHAM PARK NJ LONGWOOD INDUSTRIES INC SAID IT ACQUIRED GATES MOLDED PRODUCTS CO FROM GATES RUBBER CO OF DENVER IN A 25 MILLION CASH TRANSACTION GATES MOLDED PRODUCTS BASED IN HOUSTON WILL BE MERGED WITH LONGWOOD ELASTOMERS INC A WHYTHEVILLE VA SUBSIDIARY THAT MAKES RUBBER AND PLASTIC PRODUCTS SUCH AS CAR RAILROAD AND TRUCK PARTS AND PUMP AND VALVE COMPONENTS THE COMBINED OPERATIONS WILL HAVE 400 EMPLOYEES AND 50 MILLION IN SALES 9309010142 930901 MARRIOTT REVISES DATES OF PAY RECORD IN PLAN TO DIVIDE COMPANY NEW YORK MARRIOTT CORP ESTABLISHED NEW PAY AND RECORD DATES FOR ITS PROPOSED DIVISION OF THE COMPANY THROUGH A SPECIAL STOCK DIVIDEND AND EXTENDED ITS BOND EXCHANGE OFFER THE COMPANY SAID THE DIVISION OF THE COMPANY WILL BE ENACTED THROUGH A SPECIAL DIVIDEND PAYABLE OCT 8 TO SHAREHOLDERS OF RECORD SEPT 30 THE PREVIOUS RECORD AND PAY DATES HAD BEEN SEPT 1 AND SEPT 10 RESPECTIVELY THE HOTEL FOOD AND REAL ESTATE COMPANY SAID THE DELAY STEMMED FROM THE REVIEW PROCESS NECESSARY TO SECURE TAXFREE STATUS FOR THE DIVIDEND DISTRIBUTION MARRIOTT ALSO EXTENDED ITS PREVIOUSLY ANNOUNCED BOND EXCHANGE OFFER TO OCT 7 FROM SEPT 9 THE COMPANY SAID IT HAS RECEIVED TENDERS OF ABOUT 12 BILLION IN PRINCIPAL AMOUNT AS OF AUG 27 THE COMPANY SAID IT ORIGINALLY HAD ABOUT 15 BILLION IN PRINCIPAL AMOUNT OUTSTANDING ELIGIBLE FOR THE BOND EXCHANGE 9309010141 930901 INTERNATIONAL JAPANESE WHOLESALE PRICES TOKYO JAPAN'S OVERALL WHOLESALE PRICES DURING THE SECOND 10 DAYS OF AUGUST FELL 03 FROM THE PREVIOUS 10 DAYS AND WERE DOWN 41 FROM THE YEAREARLIER 10 DAYS THE BANK OF JAPAN ANNOUNCED JAPAN'S OVERALL WHOLESALE PRICES IN JULY FELL 01 FROM JUNE AND WERE DOWN 34 FROM THE YEAREARLIER MONTH 9309010140 930901 TRAVEL FLIERS FIND A SCARCITY OF CHOICE SEATS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL A GOOD AIRLINE SEAT IS INCREASINGLY HARD TO FIND CARRIERS USED TO GIVE OUT ECONOMYCLASS SEAT ASSIGNMENTS ON A FIRSTCOME FIRSTSERVED BASIS BUT NOW MOST AIRLINES ARE SAVING THEIR BEST COACH SEATS SUCH AS THOSE ON THE AISLE TOWARD THE FRONT OF THE CABIN FOR THEIR PREMIUM FREQUENTFLIER MEMBERS AND PASSENGERS WHO PAY FULL COACH FARE THIS REWARDS THE AIRLINES' BEST CUSTOMERS BUT LEAVES OTHER PASSENGERS OUT IN THE COLD OR THE AIRLINER EQUIVALENT THE DREAD MIDDLE SEAT BETWEEN TWO STRANGERS AT THE SAME TIME MOST MAJOR AIRLINES ARE CUTTING CAPACITY OR REDUCING THEIR RATE OF GROWTH THAT MAY HELP THEM MAKE A BUCK BUT IT ALSO MEANS THAT CHOICE SEATS SUCH AS THOSE ON THE OPPOSITE SIDE OF THE SUN ON FLIGHTS AT DUSK WILL BE HARDER TO COME BY FLIERS WHO BELIEVE THEY HAVE SQUATTER'S RIGHTS TO CERTAIN SEATS DO HAVE RECOURSE SOME TRAVEL AGENTS HAVE FOUND LOOPHOLES IN COMPUTERRESERVATION SYSTEMS THAT ENABLE THEM TO PRY OPEN BLOCKED SEATS THESE AGENTS USE HIGHTECH SUBTERFUGE THAT THEY SAY BEST SERVES THEIR CUSTOMERS AIRLINES CALL THE PRACTICES UNETHICAL FOR EXAMPLE SOME AGENTS KEEP ON HAND THE IDENTIFICATION NUMBER OF A PREMIUM FREQUENTFLIER MEMBER THEN USE THAT NUMBER AND FLIER'S NAME TO RESERVE AN AISLE SEAT ON A PARTICULAR FLIGHT THE AGENT THEN CANCELS THE RESERVATION AND QUICKLY REBOOKS THAT SAME SEAT UNDER THE ACTUAL FLIER'S NAME THE PRACTICE EVEN WORKS ON NONREFUNDABLE TICKETS BECAUSE PAYMENT FOR THE TICKET OCCURS AFTER THE SEAT IS RESERVED FOR YEARS PASSENGERS HAVE BEEN TOLD TO RESERVE A SEAT AS FAR IN ADVANCE AS POSSIBLE AND SOME AIRLINES INCLUDING AMR CORP'S AMERICAN AND UAL CORP'S UNITED LET PASSENGERS RESERVE SEATS MORE THAN 300 DAYS IN ADVANCE HOWEVER BOTH AMERICAN AND UNITED HOLD A PORTION OF AISLE AND WINDOW SEATS TOWARD THE FRONT OF THE CABIN FOR THEIR BEST FREQUENTFLIER MEMBERS UNTIL SEVERAL DAYS BEFORE DEPARTURE AT WHICH TIME UNASSIGNED SEATS ARE RELEASED IN THE PAST YEAR OR SO CONTINENTAL AIRLINES AND DELTA AIR LINES AMONG OTHERS HAVE ADOPTED SIMILAR POLICIES THUS INFREQUENT FLIERS ARE OFTEN TOLD THAT CHOICE SEATS ARE UNAVAILABLE EVEN THOUGH THEY HAVEN'T BEEN BOOKED YET BUT TRAVEL AGENTS WHO HAVE MASTERED THE INTRICACIES OF THE COMPUTERRESERVATION SYSTEMS KNOW BETTER RESERVING A FULLFARE COACH SEAT FOR EXAMPLE USUALLY ENTITLES THE TRAVELER TO A BETTER SEAT ASSIGNMENT THAN WHAT IS AVAILABLE FOR A DISCOUNT TRAVELER SOME AGENTS SAY THEY BOOK PRIME SEATS AT A HIGHER FULLFARE LEVEL THEN CANCEL THE RESERVATION AND BUY A DISCOUNT TICKET BUT NEVER RELEASE THE CHOICE SEAT WHICH IS THEN USED BY THE DISCOUNTTICKET HOLDER TRAVEL AGENTS SAY EVERY HIGHTECH TRICK MAY NOT WORK ON ALL FIVE COMPUTER RESERVATION SYSTEMS SEPARATE SYSTEMS HAVE BEEN DEVELOPED BY FIVE DIFFERENT AIRLINES BUT EACH SYSTEM PROVIDES ESSENTIALLY THE SAME FLIGHT INFORMATION AGENTS DEFEND THEIR PRACTICES ON THE GROUND THAT AIRLINES PRACTICE THEIR OWN FORM OF DECEPTION FOR EXAMPLE AIRLINES PROVIDE COMPUTERIZED SEAT MAPS SHOWING WHICH SEATS ARE FILLED ON A PARTICULAR FLIGHT BUT THE MAP WILL SHOW THAT A SEAT IS OCCUPIED WHEN IT ISN'T AS A PLOY FOR THE AIRLINES TO POSSIBLY MAKE MORE MONEY FOR EXAMPLE A SEAT MAP ON A FLIGHT FROM DALLAS TO NEW YORK MAY SHOW THAT ALL SEATS ARE FILLED IN FACT SEATS ARE STILL AVAILABLE BUT THE FIRST LEG OF THAT FLIGHT IS SAY FROM CANCUN MEXICO TO DALLAS AND THE AIRLINE HOPES TO FILL THOSE SEATS WITH HIGHERPAYING CANCUNTONEW YORK VIA DALLAS PASSENGERS SO A PASSENGER FROM DALLAS TO NEW YORK CAN GET AN OCCUPIED SEAT BY BUYING A TICKET FROM CANCUN TO NEW YORK VIA DALLAS THEN CANCELING THE CANCUNDALLAS SEGMENT THE AIRLINES DENOUNCE SUCH PRACTICES SAYING THE TACTICS COST THEM REVENUE AND UNDERMINE HOW THEY SELL THEIR PRODUCT I DON'T THINK REPUTABLE AGENCIES DO THAT SAYS JIM VERGES MANAGING DIRECTOR OF RESERVATIONS AT AMERICAN SOME TRAVEL AGENCIES AGREE WITH THE AIRLINES IT'S UNETHICAL SAYS IVAN M SCHAEFFER PRESIDENT OF WOODSIDE TRAVEL TRUST A CONSORTIUM OF 2600 AGENCIES HE SAYS GOOD CUSTOMERS CAN BE ACCOMMODATED IN MORE STRAIGHTFORWARD WAYS IF WE HAVE A PASSENGER WHO'S IMPORTANT TO US HE EXPLAINS WE CAN CALL THE AIRLINE SALES OFFICE AND ASK FOR A SEAT SOME AGENCIES HAVE FOUND MORE LEGITIMATE WAYS TO FIND IDEAL SEATS ASSOCIATED TRAVEL MANAGEMENT IN SANTA ANA CALIF DEVELOPED A SOFTWARE PROGRAM THAT SEARCHES FOR AISLE SEATS AND AUTOMATICALLY CHANGES SEAT ASSIGNMENTS WHEN A BETTER ONE ARISES ASSOCIATED TRAVEL SAYS SEATASSIGNMENT COMPLAINTS WHICH WERE ONCE COMMON HAVE DROPPED TO ALMOST ZERO SINCE IT BEGAN USING THE PROGRAM LAST YEAR IN SOME CASES PASSENGERS DON'T KNOW THAT SOME SEATS ARE SUPERIOR FOR EXAMPLE EXITROW SEATS HAVE MORE LEGROOM BUT THOSE SEATS ARE USUALLY ASSIGNED AT THE AIRPORT TO ENSURE THAT THEIR OCCUPANTS ARE PHYSICALLY ABLE TO HANDLE EMERGENCY PROCEDURES SIMILARLY BULKHEAD SEATS IN THE FRONT ROW HAVE MORE LEGROOM BUT AIRLINES LIKE TO SAVE THEM FOR CHILDREN OR PASSENGERS ON CRUTCHES IN GENERAL TRAVELERS SHOULD REMEMBER THE TIMEHONORED ADVICE ON HOW TO FLY IN RELATIVE COMFORT BOOK FLIGHTS FAR IN ADVANCE AND FLY DURING NONPEAK TIMES SUCH AS SATURDAYS AND SUNDAY MORNINGS ON WEEKDAYS FLIGHTS THAT DEPART MIDMORNING MIDAFTERNOON AND LATE AT NIGHT ARE USUALLY LESS CROWDED THAN THOSE THAT LEAVE AROUND 8 AM NOON OR 5 PM IF ALL ELSE FAILS RUN FOR CONGRESS MOST AIRLINES HAVE SPECIAL CONGRESSIONAL DESKS THAT HANDLE FLIGHT RESERVATIONS FROM MEMBERS OF CONGRESS AND THE POLITICIANS ARE RARELY DISAPPOINTED WHEN THE CURTAIN GOES UP SAYS BETH PAZIENZA PRESIDENT OF UNIGLOBE FULL SERVICE TRAVEL INC A WASHINGTON DC TRAVEL AGENCY THEY'RE ESSENTIALLY IN THE SEAT THAT THEY WANT 9309010139 930901 WHO'S NEWS SUBARU OF AMERICA INC SUBARU OF AMERICA INC CHERRY HILL NJ FRED ADCOCK WAS NAMED VICE PRESIDENT OF SALES AS PART OF A PREVIOUSLY ANNOUNCED CORPORATE REORGANIZATION MR ADCOCK WAS FORMERLY A SUBARU REGIONAL VICE PRESIDENT THE AUTO MAKER ALSO NAMED RICK CROSSON FORMERLY A SUBARU SALES MANAGER AS DIRECTOR OF FIELD OPERATIONS SUBARU IS A UNIT OF FUJI HEAVY INDUSTRIES LTD OF JAPAN 9309010137 930901 ADVANCED MEDICAL SAYS INTERIM PRESIDENT AND CFO LEFT FIRM SAN DIEGO ADVANCED MEDICAL INC SAID STANLEY S ANDERS III CHIEF FINANCIAL OFFICER WHO HAD SERVED AS INTERIM PRESIDENT SINCE MARCH LEFT THE COMPANY YESTERDAY THE COMPANY SAID MR ANDERS LEFT PURSUANT TO A MUTUAL AGREEMENT AND IN SUPPORT OF THE COMPANY'S CONTINUING RESTRUCTURING MR ANDERS 43 YEARS OLD HAD BEEN CHIEF FINANCIAL OFFICER SINCE 1989 JEFFRY PICOWER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MANAGEMENT FUNCTIONS AT ADVANCED MEDICAL WILL BE MOVED TO ITS IMED CORP SUBSIDIARY WITH IMED'S SENIOR STAFF ASSUMING ADDITIONAL RESPONSIBILITIES ULTIMATELY WE HOPE TO ELIMINATE THE ADVANCE MEDICAL LAYER OF THE ORGANIZATION ENTIRELY MR PICOWER SAID ADVANCE MEDICAL THROUGH IMED PRODUCES MEDICAL INTRAVENOUS EQUIPMENT 9309010136 930901 WHO'S NEWS TRAVELERS CORP TRAVELERS CORP HARTFORD CONN JOHN L PROM WAS NAMED SENIOR VICE PRESIDENT OF THE ASSET MANAGEMENT & PENSIONS SERVICES DEPARTMENT AT THIS INSURANCE AND FINANCIAL SERVICES COMPANY MR PROM 42 YEARS OLD SUCCEEDS THOMAS E KEATING 60 WHO IS RETIRING MR PROM HAS BEEN VICE PRESIDENT IN CHARGE OF MARKETING FOR THE DEPARTMENT 9309010135 930901 HORN & HARDART TO CHANGE NAME WEEHAWKEN NJ HORN & HARDART CO SAID ITS NAME CHANGE TO HANOVER DIRECT INC WILL BE EFFECTIVE SEPT 7 AND THE COMPANY'S AMERICAN STOCK EXCHANGE SYMBOL WILL CHANGE TO HNV FROM HOR JACK E ROSENFELD PRESIDENT AND CHIEF EXECUTIVE CALLED HORN & HARDART ONE OF THE GREAT NAMES IN AMERICAN CORPORATE HISTORY BUT SAID THE NAME DOESN'T CAPTURE THE COMPANY AS IT IS TODAY THE COMPANY FAMED FOR ITS AUTOMAT FAST FOOD OUTLETS NO LONGER OPERATES A RESTAURANT BUSINESS ITS DIRECTMARKETING CATALOG BUSINESSES HAD 1992 REVENUE OF 5866 MILLION THE COMPANY HAS 16 MILLION NAMES ON ITS MAILING LISTS 9309010134 930901 MARKETING & MEDIA GANNETT'S USA TODAY EDITION ARLINGTON VA GANNETT CO SAID USA TODAY'S INTERNATIONAL EDITION BEGAN PRINTING VIA SATELLITE IN LONDON THE INTERNATIONAL EDITION AN EDITED VERSION OF THE US NEWSPAPER HAS BEEN PRINTED IN SWITZERLAND SINCE 1986 AND IN HONG KONG SINCE 1988 9309010133 930901 US HEALTHCARE PLAN APPROVED BLUE BELL PA US HEALTHCARE INC SAID ITS US HEALTHCARE MEDICARE PLAN WAS APPROVED FOR OFFERING IN NEW JERSEY BY THE HEALTH CARE FINANCING ADMINISTRATION THE APPROVAL ALLOWS COMPANIES TO ENROLL RETIREES ELIGIBLE FOR MEDICARE INTO US HEALTHCARE HEALTH MAINTENANCE ORGANIZATIONS US HEALTHCARE RECEIVES 95 OF WHAT THE MEDICARE PROGRAM WOULD SPEND AND CHARGES BUSINESSES A NOMINAL FEE FOR ITS SERVICE THE US HEALTHCARE MEDICARE PLAN ALSO HAS BEEN APPROVED BY THE HEALTH CARE FINANCING ADMINISTRATION IN PITTSBURGH PHILADELPHIA AND NEW YORK CITY 9309010132 930901 INTERNATIONAL BRIEF SOCIETE NATIONALE ELF AQUITAINE FIRSTHALF PROFIT FELL 59 MAINLY DUE TO WRITEDOWN SOCIETE NATIONALE ELF AQUITAINE FRANCE'S STATECONTROLLED ENERGY GROUP REPORTED A 59 DECLINE IN FIRSTHALF GROUP NET INCOME MAINLY DUE TO A LARGE WRITEDOWN ON OIL AND GAS ASSETS NET FELL TO 137 BILLION FRANCS 2344 MILLION FROM 334 BILLION FRANCS DURING THE YEAREARLIER PERIOD AND PERSHARE EARNINGS DECLINED TO 53 FRANCS FROM 13 FRANCS THE COMPANY WROTE DOWN 23 BILLION FRANCS OF OIL AND GAS ASSETS LEADING TO A 53 DECLINE IN OPERATING PROFIT TO 369 BILLION FRANCS ELF SAID THE WRITEDOWN WAS MADE IN LIGHT OF THE CURRENT OIL MARKETS AND OF THE SHORTTERM OUTLOOK FOR RETURN ON CERTAIN OIL AND GAS ASSETS A SENIOR OFFICIAL SAID THE WRITEDOWN PROBABLY WOULD RESULT IN A DECLINE IN FULLYEAR 1993 NET COMPARED WITH THE 618 BILLION FRANCS POSTED IN 1992 PREVIOUSLY FORMER ELF CHAIRMAN LOIK LE FLOCHPRIGENT SAID HE EXPECTED A SLIGHT INCREASE IN PROFIT THIS YEAR ELF EMPHASIZED THAT THE WRITEDOWN WILL NOT AFFECT THE COMPANY'S DIVIDEND 9309010131 930901 BUSINESS BRIEF COLUMBIA HEALTHCARE CORP COLUMBIA HOSPITAL GALEN HOLDERS CLEAR CONSOLIDATION COLUMBIA HOSPITAL CORP OF FORT WORTH TEXAS AND GALEN HEALTH CARE INC OF LOUISVILLE KY SAID SHAREHOLDERS HAVE APPROVED THE COMBINATION OF THE TWO COMPANIES WHICH WILL BECOME EFFECTIVE TODAY UNDER THE PLAN GALEN SHAREHOLDERS WILL RECEIVE 0775 SHARE OF COLUMBIA IN EXCHANGE FOR EACH GALEN SHARE THE COMBINED ENTITY WHICH WILL BE KNOWN AS COLUMBIA HEALTHCARE CORP NOW HAS A MARKET VALUE OF ABOUT 42 BILLION SEPARATELY STANDARD & POOR'S CORP SAID IT REPLACED GALEN HEALTH IN ITS S&P 500 INDEX WITH COLUMBIA HEALTHCARE THE CHANGE WAS EFFECTIVE AT THE CLOSE OF TRADING YESTERDAY 9309010130 930901 BOMBAY CO AUGUST SALES ROSE FORT WORTH TEXAS BOMBAY CO SAID SALES FOR THE FOUR WEEKS ENDED AUG 29 ROSE 446 TO 174 MILLION FROM 12 MILLION FOR THE SAME PERIOD LAST YEAR INCLUDING 28 STORES THAT WERE CONVERTED TO A LARGER FORMAT OVER THE PAST YEAR SALES IN STORES OPEN AT LEAST A YEAR ROSE 25 THE FURNITURE AND ACCESSORIES RETAILER SAID EXCLUDING THOSE STORES SALES IN STORES OPEN A YEAR INCREASED 18 9309010129 930901 MORTON TO TRANSFER PRODUCTION FRANKFURT MORTON INTERNATIONAL INC OF CHICAGO SAID IT WILL SHIFT ITS SODIUMHYDRIDE PRODUCTION TO THE NETHERLANDS FROM MASSACHUSETTS IN ADDITION DEGUSSA AG SAID IT WILL EXCLUSIVELY DISTRIBUTE MORTON'S SODIUM HYDRIDE USED IN THE PRODUCTION OF PHARMACEUTICALS AND AGRICULTURAL CHEMICALS IN EUROPE TURKEY ISRAEL AND JAPAN DEGUSSA BASED IN FRANKFURT SAID THAT MORTON WILL EXPAND ITS DELFZIJL NETHERLANDS FACTORY AND BEGIN PRODUCING SODIUM HYDRIDE THERE IN EARLY 1994 MORTON THEN WILL STOP PRODUCTION AT ITS PLANT IN BEVERLY MASS DEGUSSA SAID A MORTON INTERNATIONAL SPOKESWOMAN SAID THE COMPANY WILL TRY TO RELOCATE EMPLOYEES FROM ITS MASSACHUSETTS FACILITY TO OTHER MORTON PLANTS THE SPOKESWOMAN SAID THERE ARE FEWER THAN 20 EMPLOYEES AT THE BEVERLY PLANT 9309010128 930901 TECHNOLOGY PHILLIPS SETTLES PATENT DISPUTE BARTLESVILLE OKLA PHILLIPS PETROLEUM CO SETTLED LITIGATION WITH MONTEDISON SPA HIMONT ITALIA SPA AND HIMONT INC CONCERNING A PATENT AND LICENSING DISPUTE REGARDING THE IMPORTATION OF CERTAIN POLYMERS PATENTED BY PHILLIPS PHILLIPS HAS US PATENTS CONCERNING A HOMOPOLYMER RANDOM COPOLYMER AND BLOCK POLYMERS WHICH ARE BUILDING BLOCKS FOR PROPYLENE USED TO PRODUCE POLYPROPYLENE PLASTICS FOR INDUSTRIAL AND CONSUMER PRODUCTS PHILLIPS AGREED TO GRANT A LICENSE TO THOSE ITALIAN COMPANIES TO IMPORT THESE POLYMERS TO THE US TERMS OF THE PACT AND LICENSING AGREEMENT WERE NOT DISCLOSED 9309010127 930901 GM RECALLS 50000 CORVETTES DETROIT GENERAL MOTORS CORP SAID IT IS RECALLING 50000 198889 CHEVROLET CORVETTES FOR A POSSIBLE EMISSIONS DEFECT GM SAID THAT TWO EVAPORATIVE EMISSION HOSES ON THESE VEHICLES MAY DETERIORATE CRACK AND LEAK BUT POSE NO SAFETY RISK REPAIRS WILL BE MADE AT NO CHARGE 9309010126 930901 INTERNATIONAL SPANISH TRADE DEFICIT SHRINKS MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK 46 TO 19740 BILLION PESETAS 146 BILLION IN JULY FROM THE YEAREARLIER MONTH THE FINANCE MINISTRY SAID THE ACCUMULATED TRADE DEFICIT NARROWED 39 TO 140 TRILLION PESETAS 1035 BILLION IN THE FIRST SEVEN MONTHS OF THE YEAR COMPARED WITH THE SAME PERIOD A YEAR EARLIER THE MINISTRY SAID THE MINISTRY SAID THE JULY FIGURES CONFIRM THAT SPAIN'S TRADE GAP IS NARROWING AT A QUICKENING PACE HELPED BY WEAK DOMESTIC CONSUMPTION AND GREATER COMPETITIVENESS OF SPANISH GOODS BECAUSE OF THE DEPRECIATION OF THE PESETA EXPORTS IN JULY JUMPED 22 TO 6769 BILLION PESETAS FROM PREVIOUSYEAR LEVELS WHILE JULY IMPORTS DROPPED 52 TO 8744 BILLION PESETAS COMPARED WITH A YEAR EARLIER 9309010125 930901 INTERNATIONAL BRIEF CANON INC TOKYO GROUP'S PRETAX PROFIT FOR FISCAL FIRST HALF FELL 45 CANON INC THE TOKYO CAMERA AND OPTICALS COMPANY SAID GROUP PRETAX PROFIT FOR THE FISCAL FIRST HALF ENDED JUNE 30 FELL 45 FROM THE PREVIOUS YEAR TO 3118 BILLION YEN 3001 MILLION SALES SLIPPED 29 TO 90223 BILLION YEN THE DIRECTION AND PERCENTAGES OF DECLINES IN CANON'S CONSOLIDATED OR GROUP RESULTS WERE LARGELY IN LINE WITH THOSE OF THE PARENT ALONE WHICH CANON ISSUED TWO WEEKS AGO AS WITH THE PARENTONLY RESULTS CANON ATTRIBUTED DECLINES IN GROUP PROFITS TO ECONOMIC WEAKNESS IN OVERSEAS MARKETS AND THE RAPID APPRECIATION OF THE YEN ABOUT 70 OF CANON'S GROUP SALES COME OVERSEAS THE STRONGER YEN DECREASES WHAT JAPANESE EXPORTERS GET IN THEIR HOME CURRENCY FOR THEIR OVERSEAS CASH FLOW TO PROTECT CASH FLOW IN TERMS OF YEN EXPORTERS HAVE RESORTED TO RAISING PRICES MAKING THEIR PRODUCTS LESS ATTRACTIVE BUT SALES OF CANON'S LASERBEAM PRINTER BETTER KNOWN AS ITS BUBBLE JET PRINTER WERE ENCOURAGING AS THEY REACHED 761 BILLION YEN UP ABOUT 05 CANON NOTED 9309010124 930901 INTERNATIONAL CHAIRMAN OUTLINES FERRUZZI GROUP RESTRUCTURING PLAN BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN FERRUZZI FINANZIARIA SPA ITALY'S TROUBLED AGROCHEMICALS HOLDING COMPANY PLANS A CAPITAL INCREASE ASSET SALES AND FINANCIAL CONSOLIDATION WHEN ITS RESTRUCTURING PLAN IS ANNOUNCED LATER THIS MONTH CHAIRMAN GUIDO ROSSI TOLD SHAREHOLDERS AT A MEETING YESTERDAY MR ROSSI ALSO SAID FERRUZZI'S CREDITORAPPOINTED MANAGEMENT IS STUDYING WHETHER TO PROPOSE SUING THE HOLDING COMPANY'S FORMER EXECUTIVES FOR MISMANAGEMENT AND FRAUD SHAREHOLDERS OF FERRUZZI'S MAIN INDUSTRIAL COMPANY MONTEDISON SPA ON MONDAY APPROVED A SIMILAR SUIT THE ACTIONS RELATE TO MORE THAN 560 BILLION LIRE 3503 MILLION IN FUNDS ALLEGEDLY FUNNELED OUT OF THE COMPANIES BY FORMER MANAGEMENT TO PAY POLITICAL BRIBES AND COVER UNDECLARED LOSSES FOLLOWING THE SEVENHOUR MEETING FERRUZZI SHAREHOLDERS APPROVED A CAPITAL WRITEDOWN TO 205 BILLION LIRE FROM 137 TRILLION LIRE THE MOVE WHICH WAS ANNOUNCED LAST MONTH CUTS THE NOMINAL OR PAR VALUE OF FERRUZZI ORDINARY SHARES TO FIVE LIRE EACH FROM 1000 LIRE THE REVISED SHARES WILL BE GROUPED IN BLOCKS OF 200 BRINGING THE NOMINAL VALUE TO 1000 LIRE THE WRITEDOWN REDUCES THE NUMBER OF ORDINARY SHARES TO BELOW THE NUMBER OF SAVINGS SHARES IN THE COMPANY PRECIPITATING AN AUTOMATIC CAPITAL INCREASE UNDER ITALIAN LAW MR ROSSI DIDN'T GIVE DETAILS OF THE CAPITAL INCREASE WHICH IS EXPECTED TO INCREASE CREDITOR BANKS' EQUITY POSITIONS IN FERRUZZI'S CAPITAL THE BANKS TOOK MANAGEMENT CONTROL OF THE COMPANY THIS SUMMER WHEN THE GROUP MISSED INTEREST PAYMENTS ON MORE THAN 28 TRILLION LIRE IN GROSS DEBT UNDER A NEW LAW BANKS CAN SWAP DEBT FOR EQUITY IN INDUSTRIAL COMPANIES A MOVE MANY FINANCIAL ANALYSTS SAY IS A LIKELY PART OF THE BANKS' RESCUE PLAN SHAREHOLDERS ALSO APPOINTED A NEW SLIMMEDDOWN BOARD ELIMINATING MEMBERS OF THE FERRUZZI FAMILY THE CONTROLLING SHAREHOLDERS THE FIVE DIRECTORS ARE MR ROSSI BANKAPPOINTED CHIEF EXECUTIVE ENRICO BONDI FRANCESCO GHIGLIONE A TAX LAWYER WIDELY BELIEVED TO REPRESENT THE FERRUZZI FAMILY GIORGIO ROSSI A FORMER BANK DIRECTOR REPRESENTING THE CREDITOR BANKS AND UMBERTO TRACANELLA A LAWYER CLOSE TO THE INTERESTS OF SEVERAL SMALL SHAREHOLDERS 9309010123 930901 INTERNATIONAL SOUTH KOREAN REFINERIES TO GROW SEOUL SOUTH KOREA SOUTH KOREA'S MINISTRY OF TRADE INDUSTRY AND ENERGY SAID IT IS ALLOWING THREE OIL REFINING COMPANIES TO EXPAND THEIR CAPACITY BRINGING THE NATION'S TOTAL OIL REFINING CAPACITY TO 25 MILLION BARRELS A DAY BY THE END OF 1997 FROM 167 MILLION BARRELS A DAY YUKONG LTD THE NATION'S LARGEST OIL REFINERY WAS ALLOWED TO EXPAND ITS DAILY CAPACITY TO 823000 BARRELS FROM 623000 BARRELS HYUNDAI OIL REFINERY CO A UNIT OF THE HYUNDAI GROUP WILL EXPAND ITS CAPACITY TO 310000 BARRELS FROM 110000 BARRELS SSANGYONG OIL REFINING CO WAS PERMITTED TO EXPAND ITS DAILY CAPACITY TO 525000 BARRELS A DAY FROM 325000 BARRELS HOWEVER THE COMPANY'S DAILY CAPACITY WILL BE 443000 BARRELS WHEN EXPANSION IS COMPLETED IN 1997 BECAUSE THE GOVERNMENT HAS ORDERED THE SSANGYONG GROUP UNIT TO CLOSE ONE OF ITS REFINING FACILITIES 9309010122 930901 BUSINESS BRIEF JOHNSON & HIGGINS REINSURANCE JOINT VENTURE SET WITH JAUCH & HUBENER JOHNSON & HIGGINS SAID IT WILL ESTABLISH A JOINT VENTURE GERMAN REINSURANCE BROKER WITH THE HAMBURG GERMANY INSURANCE BROKERAGE FIRM JAUCH & HUBENER CLOSELY HELD NEW YORKBASED INSURANCE BROKER JOHNSON & HIGGINS SAID JAUCH & HUBENER'S REINSURANCE INTERMEDIARY UNIT WILL OWN 80 OF THE NEW FIRM JAUCH & HUBENER REINSURANCE INTERMEDIARIES THE JOINT VENTURE WILL BE A LIMITED COMPANY LOCATED IN LONDON AND WILL BEGIN OPERATIONS OCT 1 THE PROJECT IS THE THIRD JOINT VENTURE BETWEEN THE TWO FIRMS JOHNSON & HIGGINS SAID ANDREAS THIELS 35 YEARS OLD HAS BEEN NAMED MANAGING DIRECTOR AND DOUGLAS E JOHNSON 42 DIRECTOR OF THE NEW FIRM MR THIELS WAS A REPRESENTATIVE FOR JAUCH & HUBENER IN SINGAPORE AND MR JOHNSON WAS AN ACCOUNT EXECUTIVE IN HAMBURG 9309010121 930901 GATT CHIEF SETS DEADLINE FOR URUGUAY ROUND TALKS GENEVA THE DIRECTOR GENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ANNOUNCED THAT THE LONGRUNNING URUGUAY ROUND OF WORLD TRADE TALKS WILL END DEC 15 AND THAT'S THAT ADDRESSING TRADE NEGOTIATORS FROM 100 NATIONS AT A MEETING OF THE TRADE NEGOTIATIONS COMMITTEE PETER SUTHERLAND ASSERTED THAT THERE WOULD BE NO MORE EXTENSIONS TO THE TALKS THE GATT CHIEF ALSO SET OUT AN ELABORATE WORK PROGRAM FOR THE MONTHS AHEAD CHIDING COUNTRIES THAT HAVE BEEN TARDY IN THEIR NEGOTIATIONS AND ASKING THEM TO SHAPE UP BUT DESPITE MR SUTHERLAND'S DEFINITIVESOUNDING RHETORIC THE LATEST GATT DEADLINE COULD PROVE TO BE NO MORE THAN STATEMENTS OF INTENT JUST LIKE ALL THE OTHERS THAT HAVE COME AND GONE SINCE THE TALKS BEGAN IN URUGUAY IN 1986 THE TRADE CLOCK APPEARS TO BE IN THE HANDS OF GERMANY'S CHANCELLOR HELMUT KOHL WHO LAST WEEK SIGNALED SUPPORT FOR FRANCE'S OBJECTIONS TO A PACT BETWEEN THE US AND THE EUROPEAN COMMUNITY ON REDUCING AGRICULTURAL SUBSIDIES IF GERMANY JOINS FRANCE IN SEEKING TO RENEGOTIATE THE AGRICULTURAL TRADE DEAL STRUCK WITH THE US LAST YEAR TIMETABLES SET HERE MAY AGAIN BE REVISED 9309010120 930901 TECHNOLOGY & SCIENCE CLINTON FOCUSING ON FUNDS TO BACK HEALTHCARE PLAN BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH THE BUDGET BATTLE AND A SEASIDE VACATION BEHIND HIM PRESIDENT CLINTON HAS BEGUN MEETINGS TO MAKE KEY DECISIONS ABOUT HIS HEALTHCARE PLAN AIDES SAY THE PRESIDENT HOPES AS EARLY AS THIS WEEK TO RESOLVE THE FINANCING OF HIS PLAN TO OVERHAUL THE NATION'S HEALTH CARE AND GUARANTEE HEALTH INSURANCE TO ALL AMERICANS ONE OF THE MOST CRITICAL CONCERNS THEY SAY IS HOW GENEROUS TO MAKE THE FEDERAL SUBSIDIES TO HELP SMALL BUSINESSES AND LOWWAGE WORKERS MR CLINTON AND HIS AIDES HAVE ALREADY ABANDONED THE IDEA OF PAYING FOR HEALTH INSURANCE FOR ALL AMERICANS THROUGH A PAYROLL TAX OR ANY OTHER BROADBASED LEVY INSTEAD THEY WILL PROPOSE A FEDERAL LAW REQUIRING ALL EMPLOYERS TO PAY FOR A PORTION PROBABLY 80 OF THEIR EMPLOYEES' HEALTH INSURANCE UP TO A SPECIFIED LIMIT ADMINISTRATION OFFICIALS SAY THE PRESIDENT STILL PLANS TO UNVEIL HIS PLAN BY THE END OF THIS MONTH PROBABLY SEPT 22 BUT A NUMBER OF DECISIONS REMAIN THEY INCLUDE THE BENEFITS PACKAGE THE PLAN WOULD GUARANTEE ALL AMERICANS A COMPREHENSIVE PACKAGE OF HEALTH BENEFITS OFFICIALS ARE STILL WRANGLING OVER SOME OF THE CONTENTS OF THAT PACKAGE SUCH AS THE MENTAL HEALTH BENEFITS SUBSIDIES TO HELP SMALL BUSINESSES AND LOWWAGE WORKERS AFFORD HEALTH INSURANCE MR CLINTON HAS PROMISED SOME FEDERAL ASSISTANCE HE MUST DECIDE HOW MUCH THE TREASURY CAN AFFORD ADVISERS ARE TALKING ABOUT OFFERING SLIDINGSCALE SUBSIDIES TO COMPANIES WITH FEWER THAN 50 WORKERS WITH AVERAGE WAGES OF LESS THAN 24000 THEY ARE ALSO CONSIDERING SUBSIDIES TO LOWWAGE WORKERS EMPLOYED BY LARGER RICHER COMPANIES THE PRESIDENT MUST DECIDE WHETHER TO PROPOSE RAISING SIN TAXES SUCH AS THE EXCISE LEVY ON CIGARETTES WINE OR SPIRITS TO HELP FINANCE THE SUBSIDIES OR OTHER PARTS OF THE PLAN SUCH AS LONGTERM CARE TRANSITION THE PRICE OF THE HEALTH PLAN VARIES BY TENS OF BILLIONS OF DOLLARS DEPENDING ON HOW FAST IT IS PHASED IN OFFICIALS ARE CONSIDERING ALLOWING THE SMALLEST AND POOREST BUSINESSES TO WAIT UNTIL FIVE TO SEVEN YEARS AFTER THE HEALTH LEGISLATION IS ENACTED BEFORE THEY HAVE TO BUY HEALTH INSURANCE SAVINGS ADMINISTRATION OFFICIALS ARE COUNTING ON SAVINGS FROM PUBLIC HEALTH PROGRAMS SUCH AS MEDICARE AND MEDICAID TO HELP PAY FOR THE SUBSIDIES BUT THEY ARE AT ODDS OVER HOW MUCH THEY CAN SQUEEZE MEDICARE WHICH COVERS ELDERLY AND DISABLED PEOPLE AND SOME OFFICIALS SUCH AS WHITE HOUSE ADVISER IRA MAGAZINER ARE PUSHING FOR LIMITS ON SPENDING FOR MEDICARE AND MEDICAID WHICH HELPS PAY FOR THE NEEDY BUT SOME ADVISERS AND HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA ARE SAID TO OPPOSE THAT IDEA 9309010119 930901 BUSINESS BRIEF GREAT WESTERN FINANCIAL CORP WEST COAST THRIFT COMPLETES SALE OF NONPERFORMING LOANS GREAT WESTERN FINANCIAL CORP SAID IT COMPLETED THE SALE OF ABOUT 200 MILLION OF NONPERFORMING SINGLEFAMILY REALESTATE LOANS TO A UNIT OF BEAR STEARNS COS THE MOVE WILL REQUIRE THE BIG THRIFT TO MAKE A PROVISION FOR LOSSES OF 50 MILLION GREAT WESTERN SAID IT WILL INCUR THE ADDITIONAL LOSS PROVISION IN THE THIRD QUARTER IN THE 1992 THIRD QUARTER THE COMPANY HAD A PROFIT OF 317 MILLION OR 22 CENTS A SHARE AS A RESULT OF THE SALE GREAT WESTERN SAID ITS NONPERFORMING ASSETS DECLINED TO 17 BILLION OR 45 OF TOTAL ASSETS DOWN FROM 192 BILLION OR 494 OF ASSETS IN JULY THE TRANSACTION WITH BEAR STEARNS CONSISTED OF LOANS ORIGINATED AFTER 1987 AND ARE MOSTLY SECURED BY PROPERTY IN SOUTHERN CALIFORNIA GREAT WESTERN IS BASED IN CHATSWORTH CALIF SO FAR THIS YEAR GREAT WESTERN HAS SOLD ABOUT 643 MILLION OF TROUBLED ASSETS COMPARED WITH 144 MILLION DURING THE COMPARABLE PERIOD OF 1992 GREAT WESTERN WILL CONTINUE THE AGGRESSIVE DISPOSITION OF NONPERFORMING ASSETS ANNOUNCED IN THE THIRD QUARTER OF 1992 THROUGHOUT THE REMAINDER OF 1993 AND EXPECTS ITS LEVEL OF NONPERFORMING ASSETS TO DECLINE FURTHER SAID JAMES F MONTGOMERY CHAIRMAN AND CHIEF EXECUTIVE 9309010118 930901 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 1/4 HIGH 3 1/8 LOW 3 3/16 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 34 DAYS 311 35 TO 89 DAYS 312 90 TO 149 DAYS 321 150 TO 179 DAYS 323 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 316 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 265 TWO MONTHS 271 THREE MONTHS 283 SIX MONTHS 295 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 311 THREE MONTHS 324 SIX MONTHS BANKERS ACCEPTANCES 308 30 DAYS 308 60 DAYS 308 90 DAYS 318 120 DAYS 318 150 DAYS 318 180 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 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 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 667 60 DAYS 674 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 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 666 60 DAYS 676 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 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 9309010117 930901 THE FREE TRADE PATH TO MIDEAST PEACE BY STANLEY FISCHER THE ISRAELI CABINET'S APPROVAL OF A SELFRULE PLAN FOR THE OCCUPIED GAZA STRIP AND THE WEST BANK TOWN OF JERICHO IS FOR MANY A HOPEFUL SIGN BUT WHAT OF THE PALESTINIANS' ECONOMIC FUTURE GENERALLY MANY FEAR THAT THE PALESTINIAN ECONOMY WILL BE A BURDEN ON THE INTERNATIONAL COMMUNITY A BREEDING GROUND FOR FUNDAMENTALISM AND AN OBSTACLE TO PEACE BETWEEN ISRAEL AND ITS NEIGHBORS BUT IF THE PALESTINIANS THE ISRAELIS AND THE JORDANIANS MAKE THE RIGHT ECONOMIC CHOICES ECONOMIC RELATIONS AMONG THEM CAN BECOME A BASE ON WHICH TO BUILD THE PEACE THIS IS THE MAIN CONCLUSION OF A REPORT WRITTEN BY A PRIVATE GROUP OF 30 ISRAELI JORDANIAN AND PALESTINIAN ECONOMISTS WORKING TOGETHER WITH HARVARD AND MIT PROFESSORS AT THE KENNEDY SCHOOL'S INSTITUTE FOR SOCIAL AND ECONOMIC POLICY IN THE MIDDLE EAST THE REPORT STARTS FROM THE ASSUMPTION THAT THERE WILL BE A TRANSITION PERIOD OF THREE TO FIVE YEARS IN THE WEST BANK AND GAZA DURING WHICH GOVERNMENTAL POWERS WILL BE EXERCISED BY A PALESTINIAN INTERIM SELFGOVERNING AUTHORITY FREE AND OPEN TRADE WAS THE SOLUTION OFFERED BY THE REPORT WRITTEN BY MANY ECONOMISTS OF DIFFERING POLITICAL BACKGROUNDS IT CONCLUDED THAT THE THREE ECONOMIES SHOULD MOVE RAPIDLY TOWARD FREE TRADE WITH FREE TRADE BETWEEN ISRAEL AND THE PALESTINIANS BEING POSSIBLE WITHIN A MATTER OF MONTHS THE PALESTINIAN ECONOMY SHOULD RELY ON THE PRIVATE SECTOR TO PLAY THE LEADING DEVELOPMENT ROLE THE BENEFITS OF FREE TRADE WILL BE ENHANCED BY REGIONAL COOPERATION AMONG THE THREE ECONOMIES IN TOURISM TRANSPORTATION INFRASTRUCTURE AND ENERGY THE ISRAELI GOVERNMENT SHOULD INCREASE THE NUMBER OF PALESTINIANS PERMITTED TO WORK IN ISRAEL TO 100000 THE PALESTINIAN ECONOMY IS VERY SMALL ITS POPULATION IS LESS THAN TWO MILLION AND ITS GROSS NATIONAL PRODUCT LESS THAN 4 BILLION UNTIL MARCH WHEN ISRAEL SHARPLY RESTRICTED LABOR FLOWS FROM THE OCCUPIED TERRITORIES FOR SECURITY REASONS ONETHIRD OF PALESTINIAN GNP WAS EARNED BY PALESTINIANS WORKING IN ISRAEL JORDAN WITH FOUR MILLION PEOPLE HAS A GNP OF ABOUT 5 BILLION ISRAEL IS THE ECONOMIC GIANT OF THE NORTHERN MIDEAST WITH FIVE MILLION PEOPLE AND A 60 BILLION GNP EVEN SO ITS ECONOMY IS ONLY 1 THE SIZE OF THAT OF THE US THE DOMESTIC MARKETS IN ALL THREE ECONOMIES ARE SO SMALL THAT ECONOMIC DEVELOPMENT HAS TO BE BASED ON AN OUTWARDLOOKING STRATEGY FOR THE PALESTINIANS KEY ELEMENTS IN THAT STRATEGY INCLUDE FREE TRADE WITH THEIR IMMEDIATE NEIGHBORS ISRAEL AND JORDAN ATTEMPTS TO ENHANCE ACCESS TO THE OTHER ARAB COUNTRIES THE EUROPEAN COMMUNITY AND THE US AND POLICIES TO ATTRACT FOREIGN INVESTMENT MANY ELEMENTS OF A FREETRADE AREA ALREADY EXIST BETWEEN ISRAEL AND THE WEST BANK AND GAZA HOWEVER IF FREE TRADE IS TO DEVELOP BETWEEN THE TWO ECONOMIES ISRAEL WILL HAVE TO REMOVE ITS TIGHT CONTROLS ON PALESTINIAN AGRICULTURAL GOODS AND TEXTILES A FAIR AGREEMENT ON THE USE OF WATER RESOURCES WILL ALSO BE NEEDED TRADE BETWEEN THE OCCUPIED TERRITORIES AND JORDAN HAS BEEN TIGHTLY CONTROLLED BUT THOSE TWO ECONOMIES COULD MOVE TOWARD FREE TRADE OVER A PERIOD OF A FEW YEARS THE OVERLAP WITHIN THE PALESTINIAN ENTITY OF ISRAELIPALESTINIAN AND PALESTINIANJORDANIAN FREE TRADE AGREEMENTS WOULD INEVITABLY MAKE IT HARD TO CONTROL GOODS FLOWS BETWEEN ISRAEL AND JORDAN AND AMONG THESE COUNTRIES AND THEIR RESPECTIVE TRADING PARTNERS THESE DIFFICULTIES WOULD SPUR TRADE NEGOTIATIONS BETWEEN ISRAEL AND JORDAN AND SPEED THE CREATION OF A FREE TRADE AREA AMONG THE THREE ECONOMIES IN TURN THIS AREA COULD EXPAND TO ENCOMPASS LEBANON SYRIA AND EGYPT AND THEN OTHER PARTS OF THE MIDDLE EAST A FREE TRADE AGREEMENT WOULD FORM THE BASIS OF A MARKETFRIENDLY DEVELOPMENT STRATEGY FOR THE PALESTINIANS PALESTINIANS IN THE WEST BANK AND GAZA AND ALL OVER THE WORLD HAVE DEMONSTRATED REAL ENTREPRENEURIAL SKILLS PROVIDED THEY ARE NOT HOBBLED BY BUREAUCRACY THESE SKILLS WOULD DRIVE DEVELOPMENT ASSEMBLY AND SUBCONTRACTING FOR ISRAELI AND OTHER MANUFACTURERS WOULD BE AN IMPORTANT IMPETUS TO INDUSTRIAL GROWTH THE ECONOMY SHOULD ALSO BE ABLE TO ATTRACT SOME OF THE PALESTINIAN PROFESSIONALS WORKING ALL OVER THE WORLD AND THERE SHOULD BE NO PROBLEM OF ACCESS TO CAPITAL FOR THE SAVING RATE AMONG THE PALESTINIANS HAS BEEN VERY HIGH IN ADDITION TO TRADE IN GOODS AND LABOR THE THREE ECONOMIES CAN BENEFIT FROM ENHANCED TRADE IN SERVICES ESPECIALLY TOURISM AIRPORT SEAPORT ROAD AND BRIDGE FACILITIES BUS TRANSPORTATION AND ENERGY THE REPORT RECOMMENDS THAT GROUPS OF ISRAELI JORDANIAN PALESTINIAN AND FOREIGN EXPERTS BE APPOINTED IMMEDIATELY TO DEVELOP CONCRETE PROPOSALS TO ENHANCE TRADE IN THESE AREAS AND TO IMPROVE REGIONAL INFRASTRUCTURE THESE SHOULD INCLUDE PLANS TO IMPROVE ROAD TRANSPORTATION BETWEEN THE WEST BANK AND GAZA GIVEN THE IMPORTANCE OF IMPROVED ECONOMIC PERFORMANCE TO THE SUCCESS OF PEACE AND THE IMPORTANCE OF INCOME FROM WORK IN ISRAEL TO THE PALESTINIANS THE REPORT STRONGLY RECOMMENDS THE RESUMPTION OF LABOR FLOWS FROM THE WEST BANK AND GAZA TO ISRAEL THE CONDITIONS OF WORK WILL HAVE TO BE REGULATED AND SECURITY PROBLEMS SOLVED BUT ANY SHARP CUTBACK FROM THE 100000 LEVEL WOULD UNNECESSARILY INCREASE HARDSHIP IN THE TERRITORIES THE REPORT RECOMMENDS THAT AT THE START OF THE TRANSITION THE PALESTINIANS SIMPLY TAKE OVER THE ECONOMIC MANAGEMENT STRUCTURE OF THE ISRAELI CIVIL ADMINISTRATION REPLACING ISRAELIS WITH PALESTINIANS THE TAX SYSTEM AND THE DUALCURRENCY ISRAELI SHEKEL AND JORDANIAN DINAR MONETARY SYSTEM CAN SERVE FOR A FEW YEARS MORE WITHOUT IMPEDING DEVELOPMENT BECAUSE PALESTINIAN INFRASTRUCTURE HAS BEEN NEGLECTED FOR MANY YEARS THE ECONOMY WILL NEED SOME EXTERNAL FINANCIAL ASSISTANCE IN THE NEXT FEW YEARS BUT THE AMOUNTS NEEDED WILL BE SMALL BY INTERNATIONAL STANDARDS PERHAPS 500 MILLION TO 700 MILLION A YEAR AND THE PALESTINIANS ALREADY RECEIVE ABOUT 200 MILLION A YEAR IN FOREIGN AID THIS PLAN DOES NOT DISCUSS TWO OF THE TOUGHEST ISSUES SETTLEMENTS AND REFUGEES BUT IT IS CLEAR THAT ECONOMIC RELATIONS CAN HELP STRENGTHEN THE PEACE IF THE GOVERNMENTS INVOLVED ALLOW MARKETS TO WORK MR FISCHER FORMER CHIEF ECONOMIST AT THE WORLD BANK 198890 HEADS THE ECONOMICS DEPARTMENT AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY 9309010116 930901 BUSINESS BRIEF FEDERAL EXPRESS CORP GUARANTEED DELIVERY TIME TO EUROPE IS SET EARLIER FEDERAL EXPRESS CORP SAID IT WILL OFFER GUARANTEED INTERNATIONAL DELIVERY OF LETTERS AND PACKAGES UP TO 150 POUNDS TO MORE THAN 50 CITIES IN EUROPE BY 12 PM THE SECOND BUSINESS DAY THE NOON DELIVERY COMMITMENT WILL BE AVAILABLE FROM MOST US CITIES AND A FEW LOCATIONS IN CANADA WHICH CURRENTLY PROVIDE SECONDBUSINESSDAY SERVICE TO EUROPEAN DESTINATIONS BY 5 PM FEDERAL EXPRESS IS THE ONLY EXPRESS CARRIER TO OFFER THE NOON SERVICE COMMITMENT WITH A MONEYBACK GUARANTEE SAID ROBERT MILLER VICE PRESIDENT OF FEDERAL EXPRESS MARKETING FOR THE AMERICAS AND CARIBBEAN IN A STATEMENT KEVIN C MURPHY A MORGAN STANLEY & CO ANALYST SAID THE MOVE WILL SET THE SERVICE STANDARD FOR OTHER SHIPPERS 9309010115 930901 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 9309010114 930901 RULE OF LAW ALASKA TO US YOU OWE US 29 BILLION BY CHARLES E COLE THE STATE OF ALASKA FILED SUIT ON JULY 22 AGAINST THE UNITED STATES IN THE COURT OF FEDERAL CLAIMS ALLEGING BREACH OF THE ALASKA STATEHOOD COMPACT WE ARGUE THAT THE UNITED STATES HAS BROKEN THE COMPACT BY FAILING TO GIVE ALASKA 90 OF REVENUES FROM MINERAL LEASING ON FEDERAL LAND WE SEEK DAMAGES OF 29 BILLION THE LITIGATION IS ROOTED IN THE HISTORY OF ALASKA STATEHOOD IN 1958 WHEN STATEHOOD WAS BEING CONSIDERED THE VAST TERRITORY OF ALASKA WAS A WEALTH OF NATURAL RESOURCES YET SOME MEMBERS OF CONGRESS AND MANY ALASKANS BELIEVED THAT ALASKA WOULD BE UNABLE TO GENERATE SUFFICIENT REVENUES FROM TRADITIONAL SOURCES TO MEET THE EXPENSES OF STATEHOOD AS A STATE ALASKA'S TAXING POWER COULD NOT BE EXPECTED TO PRODUCE MUCH INCOME 999 OF ITS LAND WAS FEDERALLY OWNED AND THEREFORE UNTAXABLE ITS INDUSTRIAL BASE WAS EXTREMELY LIMITED AND ITS POPULATION WAS TOO SMALL TO PRODUCE MUCH MORE THAN A TRICKLE OF INCOME TAX REVENUE FURTHER CONGRESS RECOGNIZED THAT A REPUBLICAN FORM OF GOVERNMENT WOULD BE PROPORTIONALLY MUCH MORE EXPENSIVE IN ALASKA WHERE THE TERRITORY'S POPULATION OF 211000 WAS SPREAD OVER A LAND MASS ONEFIFTH THE SIZE OF THE CONTIGUOUS 48 STATES FAR FROM THE REST OF THE UNION TO ENSURE THAT ALASKA COULD MEET THE ECONOMIC DEMANDS OF STATEHOOD CONGRESS INCLUDED THREE EXTRAORDINARY GRANTS OF NATURAL RESOURCE INTERESTS IN THE STATEHOOD ACT CONGRESS GRANTED THE STATE 10335 MILLION ACRES OF LAND INALIENABLE MINERAL RIGHTS TO THIS LAND AND A 90 SHARE OF THE REVENUES FROM MINERAL LEASES ON THE LANDS IN ALASKA THAT WERE RETAINED BY THE FEDERAL GOVERNMENT THE HOUSE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS CHARACTERIZED THE 90 REVENUE GRANT AS ONE OF THE MAJOR PROVISIONS OF THE ALASKA STATEHOOD ACT THE SENATE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS DEEMED IT ONLY FAIR THAT WHEN THE STATE RELIEVES THE UNITED STATES OF MOST OF ITS EXPENSE BURDEN THE STATE SHOULD RECEIVE A REALISTIC PORTION OF THE PROCEEDS FROM RESOURCES WITHIN ITS BORDERS THE 90 REVENUE GRANT IS UNIQUE TO ALASKA SIXTEEN OTHER STATES BY COMPARISON DIRECTLY RECEIVED ONLY 50 OF MINERAL REVENUES FROM FEDERAL LANDS WITHIN THEIR BORDERS WITH 40 MORE DEDICATED TO THE RECLAMATION FUND A FEDERAL FUND USED FOR WATER AND CONSERVATION PROJECTS IN THOSE STATES TO ENSURE ALASKA'S VIABILITY HOWEVER CONGRESS INCREASED ALASKA'S SHARE TO 90 AND OFFERED IT AS AN INDUCEMENT TO ALASKANS TO ACCEPT THE FINANCIAL BURDENS OF STATEHOOD THE 10 RETAINED BY THE UNITED STATES WAS TO COMPENSATE THE FEDERAL GOVERNMENT FOR THE COST OF ADMINISTERING THE MINERAL LEASES THE 90 REVENUE PROVISION WAS INCLUDED IN THE ALASKA STATEHOOD ACT PASSED BY CONGRESS AND SIGNED INTO LAW BY PRESIDENT EISENHOWER ON JULY 7 1958 THE ACT ALSO REQUIRED HOWEVER THAT ALASKA'S ELECTORATE APPROVE STATEHOOD AND CONSENT TO THE TERMS OR CONDITIONS OF THE GRANTS OF LANDS OR OTHER PROPERTY THEREIN MADE TO THE STATE OF ALASKA ALASKANS STUDIED AND CONSIDERED THE STATEHOOD ACT PROVISIONS BEFORE VOTING IN THE STATEWIDE REFERENDUM LOCAL NEWSPAPERS PUBLISHED THE TEXT OF THE ACT IN AUGUST 1958 AND INTERIOR SECRETARY FRED SEATON VISITED ALASKA AND DELIVERED SPEECHES OUTLINING THE ACT'S TERMS IN A SPEECH TO THE ANCHORAGE CHAMBER OF COMMERCE ON AUG 25 SECRETARY SEATON DISCUSSED THE LAND AND MINERAL RIGHTS GRANT AND THE 90 REVENUE PROVISION HE ASSURED HIS LISTENERS THAT ACCORDING TO AN ANALYSIS PREPARED BY THE DEPARTMENT OF THE INTERIOR THE ADDITIONAL COSTS OF STATEHOOD WOULD BE MORE THAN OFFSET BY THESE ADDITIONAL REVENUES TO BE PROVIDED TO THE STATE ON AUG 26 1958 ALASKANS VOTED 40452 TO 8010 FOR THE ADMISSION OF ALASKA TO THE UNION ON THE TERMS PROVIDED IN THE STATEHOOD ACT UPON ACCEPTANCE THE STATEHOOD ACT BECAME A COMPACT A STATEHOOD COMPACT IS ESSENTIALLY A CONTRACT IT CONSTITUTES CONGRESS'S AGREEMENT TO ADMIT A STATE INTO THE UNION WITH ALL THE SOVEREIGN ATTRIBUTES OF THE EXISTING STATES AND THE CITIZENS' AGREEMENT TO ACCEPT THE SOCIAL POLITICAL AND FINANCIAL RESPONSIBILITIES OF SELFGOVERNANCE HAVING AGREED TO A COMPACT'S TERMS THE FEDERAL GOVERNMENT CANNOT UNILATERALLY ALTER THEM ANY ALTERATION REQUIRES THE STATE'S CONSENT AS THE SUPREME COURT HAS STATED ASARCO INC V KADISH 1989 IN DISCUSSING A STATEHOOD COMPACT CONGRESS COULD NOT GRANT LANDS TO A STATE ON CERTAIN SPECIFIC CONDITIONS AND THEN LATER AFTER THE CONDITIONS HAD BEEN MET AND THE LANDS VESTED SUCCEED IN UPSETTING SETTLED EXPECTATIONS THROUGH A BELATED EFFORT TO RENDER THOSE CONDITIONS MORE ONEROUS SINCE ALASKA'S STATEHOOD HOWEVER THE FEDERAL GOVERNMENT HAS VIOLATED ITS PROMISE TO PROVIDE THE STATE WITH 90 OF THE MINERAL REVENUES FROM FEDERAL LANDS WHEN THE STATEHOOD ACT WAS RATIFIED NEARLY ALL THE FEDERAL LAND IN ALASKA WAS OPEN TO LEASING UNDER THE MINERAL LEASING ACT CONGRESS IN PASSING THE STATEHOOD ACT AND ALASKANS IN RATIFYING IT UNDERSTOOD THAT THE REVENUE PROVISION APPLIED TO ALL OF THESE LANDS IN THE 35 YEARS SINCE STATEHOOD HOWEVER CONGRESS HAS SYSTEMATICALLY WITHDRAWN FEDERAL LANDS FROM POTENTIAL MINERAL LEASING THEREBY KEEPING THE STATE FROM REALIZING REVENUES FROM MINERAL DEVELOPMENT ON THESE LANDS CURRENTLY MORE THAN 100 MILLION ACRES OF THE 218 MILLION ACRES OF FEDERAL LAND IN ALASKA ARE CLOSED TO MINERAL LEASING IN ADDITION CONGRESS RECENTLY HAS BEGUN TO DEDUCT ADMINISTRATIVE COSTS FROM THE STATE'S 90 SHARE OF REVENUES CONGRESS'S BREACH OF THE REVENUE PROVISION IS BLATANT IF CONGRESS ON THE DAY FOLLOWING ADMITTANCE OF ALASKA INTO THE UNION HAD WITHDRAWN THE SAME AMOUNT OF FEDERAL LANDS WITHIN THE STATE FROM MINERAL LEASING NO ONE WOULD DOUBT THAT CONGRESS HAD BROKEN ITS WORD TO ALASKA YET OVER THE YEARS CONGRESS'S CUMULATIVE WITHDRAWALS HAVE HAD THE SAME EFFECT ALASKANS BELIEVE THAT THE FEDERAL GOVERNMENT HAS NOT ACTED IN GOOD FAITH IN BRINGING SUIT AGAINST THE UNITED STATES ALASKA SEEKS TO ENFORCE CONGRESS'S PROMISE UPON WHICH ITS CITIZENS RELIED IN ACCEPTING STATEHOOD AND TO WHICH CONGRESS IS BOUND IF CONGRESS DID NOT INTEND TO HONOR ITS PROMISE TO PAY ALASKA 90 OF MINERAL LEASE REVENUES ON FEDERAL LANDS IT SHOULD NOT HAVE MADE THE PROVISIONS PART OF THE STATEHOOD BARGAIN THE DEPARTMENT OF THE INTERIOR HAS STATED THAT IT DOES NOT TAKE ALASKA'S LAWSUIT SERIOUSLY IT SHOULD MR COLE IS ATTORNEY GENERAL OF ALASKA 9309010113 930901 YOU MEAN THAT PINGPONG BALLS AREN'T ON THE ENDANGERED LIST BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL IT MAY NOT HAVE THE CACHET OF INDY OR DAYTONA BUT THE GREAT BRUNEAU VALLEY SNAIL RACE OOZES PASSIONATE INTENSITY EARLIER THIS YEAR THE US FISH & WILDLIFE SERVICE LISTED THE BRUNEAU HOTSPRINGS SNAIL UNDER THE ENDANGERED SPECIES ACT SETTING OFF A ROAR OF OUTRAGE AROUND BRUNEAU IN SOUTHWESTERN IDAHO THE LISTING ENDED A NINEYEAR DEBATE OVER THE SNAIL'S ENDANGERMENT AND SOME FARMERS AND RANCHERS FEAR THAT GRAZING AND WATER RIGHTS MAY BE ADVERSELY AFFECTED THE SNAIL ABOUT THE SIZE OF THIS COMMA FACES POSSIBLE EXTINCTION BECAUSE OF FALLING WATER LEVELS CAUSED BY HEAVY USE CONSERVATIONISTS CONTEND SOME RANCHERS AND FARMERS HOWEVER ARGUE THAT THE SNAIL INSTEAD HAS FALLEN VICTIM TO SEISMIC SHIFTS OR OTHER NATURAL PHENOMENA AFTER SELLING TSHIRTS AND POSTING SNAIL WANTED POSTERS THE BRUNEAU VALLEY BOOSTERS DECIDED A RACE WOULD BE THE BEST WAY TO RAISE FUNDS FOR THE LEGAL AND RESEARCH EXPENSES REQUIRED TO CAMPAIGN FOR THE SNAIL'S DELISTING WE'VE GOT ABOUT 2000 ENTRIES SO FAR SAYS SHERRY COLYER THE GROUP'S PRESIDENT WITH ENTRIES COMING FROM AS FAR AWAY AS NOVA SCOTIA THE SEPT 25 RACE WON'T ACTUALLY BE AMONG ENDANGERED SNAILS INSTEAD ORGANIZERS WILL DUMP NUMBERED PINGPONG BALLS INTO A MUDDY IRRIGATION DITCH PARTICIPANTS CAN PURCHASE THE SNAIL STANDINS FOR 5 EACH THE WINNER WILL TAKE HOME 1000 THE THOUGHT OF HOLDING A RACE INVOLVING ENDANGERED SPECIES EVEN SYMBOLICALLY HASN'T PLEASED ENVIRONMENTALISTS SEEKING TO SAVE THE MOLLUSK I THINK IT'S KIND OF SILLY SAYS ROBERT MORRIS OF THE COMMITTEE FOR IDAHO'S HIGH DESERT ADDS CHUCK LOBDELL OF THE US FISH & WILDLIFE SERVICE'S IDAHO OFFICE THEY'RE TRYING TO MAKE A JOKE OF THIS MAYBE IT'S THERAPEUTIC BRUNEAU'S 400 RESIDENTS MAY DRAW FURTHER THERAPY FROM A SIGN AT THE EDGE OF TOWN THAT PROCLAIMS WOULD THE LAST PERSON TO LEAVE THE BRUNEAU VALLEY PLEASE FEED AND WATER THE ENDANGERED SNAIL THE PEOPLE OF THE COMMUNITY HAVE NEVER THREATENED THOSE SNAILS SAYS RAYOLA JACOBSEN OF THE IDAHO FARM BUREAU PEOPLE JOKE ABOUT THEM BUT THEY JOKE ABOUT THE GOVERNMENT OR ANYTHING SOME CONSERVATIONISTS HOWEVER BELIEVE THE SNAIL'S POSSIBLE DEMISE PORTENDS GREATER PROBLEMS IF THESE PEOPLE KEEP DOING WHAT THEY'RE DOING THEY'LL PUMP THEMSELVES DRY THEN WHOSE FAULT WILL THAT BE ASKS PETER BOWLER A LECTURER AT THE UNIVERSITY OF CALIFORNIAIRVINE 9309010112 930901 INTERNATIONAL ISRAEL AND PLO MOVE CLOSER TO DIRECT TALKS LONGTIME ENEMIES NEAR A MUTUAL RECOGNITION TERRORISM IS AN ISSUE BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION MOVED TOWARD DIRECT NEGOTIATIONS AS A SENIOR ISRAELI OFFICIAL SAID HIS GOVERNMENT IS PREPARED TO RECOGNIZE THE PLO IF THE PLO RENOUNCES TERRORISM AND A SENIOR PLO OFFICIAL IN TUNIS DECLARED THE GROUP'S CHARTER DENYING ISRAEL'S EXISTENCE IS NULL AND VOID YOSSI BEILIN ISRAEL'S DEPUTY FOREIGN MINISTER SAID ISRAEL IS READY TO RECOGNIZE THE PLO WHICH HAS LONG BEEN REVILED BY ISRAELIS FOR ITS TERRORISM IF THE PLO EXPLICITLY RECOGNIZES ISRAEL'S RIGHT TO EXIST PUTS AN END TO TERRORISM AND EXPUNGES ALL REFERENCES TO THE DESTRUCTION OF THE JEWISH STATE IN THE PALESTINIAN CHARTER MR BEILIN SPOKE AT A NEWS CONFERENCE YESTERDAY CALLED TO EXPLAIN THE ISRAELI CABINET'S DECISION LATE MONDAY TO ENDORSE A PLAN TO ALLOW PALESTINIAN SELFRULE IN THE OCCUPIED GAZA STRIP AND IN THE BIBLICAL WEST BANK CITY OF JERICHO AS A FIRST STEP TOWARD AUTONOMY FOR PALESTINIANS THROUGHOUT THE OCCUPIED TERRITORIES SIGNIFICANTLY THE ISRAELIS AREN'T INSISTING THAT THE PALESTINIANS GIVE UP THEIR DEMAND THAT ALL PALESTINIANS ABROAD BE ALLOWED TO RETURN TO THE TERRITORIES NOW OCCUPIED BY ISRAEL MR BEILIN SAID WE NEED SOMETHING MORE THAN DECLARATIONS BUT THERE IS A NEW READINESS TO RECOGNIZE THE PLO WHICH HAS NOT HAPPENED IN THE LST 26 YEARS NO GOVERNMENT IN ISRAEL HAS BEEN READY FOR SUCH A THING BUT IF THEY MEET OUR CONDITIONS WE WON'T HAVE INHIBITIONS TO DO IT MR BEILIN SAID SEEMINGLY IN CONCERT WITH THE ISRAELI STATEMENTS PLO POLITICAL ADVISER BASSAM ABU SHARIF SAID AT PLO HEADQUARTERS IN TUNIS TUNISIA THAT THE NEW PROGRAM OF THE PLO SUPERCEDES THE PLO CHARTER WHICH HE DECLARED CADUC A FRENCH WORD MEANING NULL AND VOID REUTERS NEWS AGENCY REPORTED MR ABU SHARIF SPOKE BEFORE PEACE TALKS BETWEEN ISRAEL AND THE PALESTINIANS RECONVENED IN WASHINGTON YESTERDAY IN AN ISRAELI TELEVISION INTERVIEW FROM WASHINGTON BROADCAST IN ISRAEL SENIOR PLO OFFICIAL NABIL SHAATH SAID HE EXPECTS THAT WITHIN DAYS AND AT THE MOST WEEKS ISRAEL AND THE PLO WILL FORMALLY RECOGNIZE ONE ANOTHER THE US WILL RENEW ITS RELATIONS WITH THE PLO AND PLO OFFICIALS WILL JOIN THE PALESTINIAN DELEGATION IN WASHINGTON THIS ISN'T A CEASEFIRE HE TOLD THE ISRAELI PUBLIC THIS IS HISTORY THE PALESTINIANS AT THE NEGOTIATING TABLE IN WASHINGTON WERE IN A HOLDING PATTERN MR SHAATH SAID AWAITING RATIFICATION OF THE NEW PLAN BY THE PLO'S EXECUTIVE COMMITTEE AND THE ISRAELI PARLIAMENT AT THE JERUSALEM NEWS CONFERENCE MR BEILIN THE DEPUTY FOREIGN MINISTER ALSO SAID THAT THE PLAN GIVING PALESTINIANS IMMEDIATE SELFRULE IN THE OCCUPIED GAZA STRIP AND JERICHO IS CONDITIONAL ON THE PALESTINIANS BEING ABLE TO PREVENT ISLAMIC FUNDAMENTALIST GROUPS WHO OPPOSE THE PEACE TALKS FROM CARRYING OUT TERRORIST ATTACKS AGAINST ISRAEL IF THERE ARE PROBLEMS ON THE WAY TO IMPLEMENTING THE AGREEMENT AND IF THEY CANNOT CONTROL THEIR OPPOSITION AND THERE IS NO ORDER WE WILL SAY WE CAN'T GO ON SAID MR BEILIN WHO SAID THAT A KEY PART OF THE GAZA AND JERICHO FIRST PLAN IS THE FACT THAT IT IS REVERSIBLE MR BEILIN CONTINUED AS IN ANY OTHER AGREEMENT THERE IS THE BELIEF THAT BOTH SIDES WILL BE ABLE TO IMPLEMENT IT AND CAN BE TRUSTED BUT IF THERE IS A CLEAR VIOLATION IT WILL BE MORE THAN UNDERSTANDABLE THAT WE CANNOT ADHERE TO IT ALTHOUGH PUBLIC OPINION POLLS SHOW THAT THE MAJORITY OF ISRAELIS FAVOR THE GAZAJERICHO AGREEMENT MR BEILIN'S COMMENTS CONJURE UP PRECISELY WHAT MANY ISRAELIS VIEW AS A NIGHTMARE SCENARIO THE PROSPECT OF THE ISRAELI ARMY HAVING TO REENTER PALESTINIAN POPULATION CENTERS AND REASSERT CONTROL THE DRAFT AGREEMENT CALLS FOR ESTABLISHMENT OF A STRONG PALESTINIAN POLICE FORCE OSTENSIBLY TO ENSURE THAT SUCH A PROBLEM NEVER ARISES MR BEILIN ACKNOWLEDGED THAT THE TWO SIDES MUST STILL DEFINE WHAT CONSTITUTES STRONG AND HAVEN'T AGREED ON WHAT THE BORDERS OF GAZA AND JERICHO WILL BE OR THE EXACT DETAILS OF THE ISRAELI ARMY'S WITHDRAWAL FROM THE TWO AREAS EVERY ITEM IS POTENTIALLY A SOURCE OF A BIG DISPUTE HE SAID NEVERTHELESS ISRAELI FOREIGN MINISTER SHIMON PERES SAID WE ARE SERIOUS DETERMINED WE WANT TO BRING AN END TO 100 YEARS OF HATRED AND SUFFERING BOTH SIDES HAVE LITTLE CHOICE ALL OF US HAVE TO BUY A TICKET TO A NEW CENTURY WHILE IT HAS LONG BEEN AN OPEN SECRET THAT MOST ISRAELI CABINET MINISTERS FAVOR DIRECT NEGOTIATIONS WITH THE PLO MR BEILIN'S STATEMENTS MARK THE FIRST TIME THE GOVERNMENT SET OUT ITS CONDITIONS FOR RECOGNIZING THE PLO THE TWO SIDES HAVE BEEN MEETING SECRETLY IN NORWAY AND ELSEWHERE MOST OF THIS YEAR THE NORWEGIAN FOREIGN MINISTER DISCLOSED MONDAY SARI NUSSEIBEH HEAD OF THE TECHNICAL COMMITTEE PLANNING THE INSTITUTIONS OF PALESTINIAN SELFRULE IN THE OCCUPIED TERRITORIES SAID ANY AGREEMENT WILL HAVE TO BE SIGNED BY THE PLO AND ISRAEL BUT THAT HE FEELS THE ISRAELIS ALREADY HAVE RECOGNIZED THE PLO THERE IS ALREADY DE FACTO RECOGNITION OF THE PLO AND A WILLINGNESS TO NEGOTIATE WITH THE PLO AND TO SIGN AN AGREEMENT WITH THEM SAID MR NUSSEIBEH THIS PROCESS IS BOUND TO DEVELOP AND ISN'T REVERSIBLE BUT EPHRAIM SNEH A MEMBER OF THE DEFENSE AND FOREIGN AFFAIRS COMMITTEE IN THE ISRAELI PARLIAMENT SAID THAT FORMAL RECOGNITION BY THE TWO SIDES IS VITAL TO ENSURING THE SUCCESS OF THE GAZAJERICHO PLAN WHO WILL BE THE PARTNER FOR ALL THE UNDERSTANDINGS REACHED IN THE AGREEMENT IT'S INEVITABLE THAT IT'S THE PLO HE SAID SO IF THE PLO DOESN'T ACT AGAINST TERRORISM IF THEY DON'T CANCEL THE COVENANT IT WILL BE DIFFICULT FOR US TO IMPLEMENT SOME OR MOST OF THE AGREEMENT LET ALONE TO RECOGNIZE THE PLO ONCE THE AGREEMENT IS SIGNED IMPLEMENTING PALESTINIAN SELFRULE IN GAZA AND JERICHO IS EXPECTED TO TAKE FOUR MONTHS THE SIGNING OF THE AGREEMENT WILL ALSO MARK THE BEGINNING OF A FIVEYEAR INTERIM PERIOD AT THE END OF WHICH A PERMANENT AGREEMENT IS TO BE REACHED ISRAELI OFFICIALS SAY NEGOTIATIONS WILL CONTINUE ALONG THREE TRACKS IN THE COMING MONTHS IMPLEMENTING PALESTINIAN SELFRULE IN GAZA AND JERICHO ESTABLISHING PALESTINIAN CONTROL OVER EDUCATION AND CULTURE HEALTH TOURISM EMPLOYMENT AND TAXES IN OTHER AREAS OF THE WEST BANK AND HAMMERING OUT ISSUES RELATED TO AUTONOMY SUCH AS HOLDING ELECTIONS FOR A PALESTINIAN COUNCIL SEVERAL CRITICAL ISSUES WILL BE ADDRESSED ONLY WHEN NEGOTIATIONS OVER A PERMANENT SETTLEMENT BEGIN TWO YEARS FROM NOW SUCH AS THE PALESTINIAN RIGHT OF RETURN ISRAELI CONTROL OVER THE BRIDGES TO JORDAN AND ENTRY INTO THE OCCUPIED TERRITORIES SAYS MR NUSSEIBEH THIS AGREEMENT IS A TESTING GROUND NOT JUST FOR THE ISRAELIS BUT FOR THE PALESTINIANS AS WELL THE PALESTINIANS NEED TO TEST WHETHER THE ISRAELIS ARE GENUINE ABOUT REACHING A FINAL SETTLEMENT IN WHICH THEY WILL EVENTUALLY WITHDRAW FROM THE OCCUPIED TERRITORIES