RESEARCHERS SAID THEY DISCOVERED A SUBTLE ABNORMALITY IN SKIN CELLS OF
PEOPLE WITH ALZHEIMER'S DISEASE PERHAPS ENABLING EARLY DIAGNOSIS OF THE
DISORDER WITH SKIN TESTS

THE SCIENTISTS SAID THE ABNORMALITY APPEARS TO BE PRESENT IN MANY DIFFERENT
KINDS OF CELLS THAT SUGGESTS IT ALSO OCCURS IN BRAIN CELLS AND IS PART OF
THE NEURONDAMAGING PROCESS THAT CAUSES ALZHEIMER'S WHICH LEADS TO LOSS OF
MEMORY AND OTHER COGNITIVE DECAY THE STUDY WAS LED BY DANIEL ALKON OF THE
NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE PART OF THE
NATIONAL INSTITUTES OF HEALTH IN BETHESDA MD

THE FINDING WHICH IS PRELIMINARY MUST BE REPLICATED IN MANY PATIENTS
BEFORE THE ABNORMALITY WILL BE WIDELY ACCEPTED AS A SIGN OF ALZHEIMER'S
DISEASE INDEED OTHER SCIENTISTS PREVIOUSLY REPORTED CELLULAR ABNORMALITIES
LINKED TO THE DISEASE THAT COULDN'T BE REPLICATED SAID GARY GIBSON
COAUTHOR OF THE REPORT WHICH IS PUBLISHED IN TODAY'S ISSUE OF THE
PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCE

BUT IF THE FINDING HOLDS UP IT WOULD REPRESENT A MAJOR ADVANCE IN
DIAGNOSING THE FATAL DISEASE AND IN UNDERSTANDING WHAT CAUSES IT
ALZHEIMER'S DISEASE WHOSE SYMPTOMS TYPICALLY FIRST APPEAR IN PATIENTS
AROUND AGE 65 IS DIFFICULT TO DISTINGUISH FROM OTHER DEGENERATIVE BRAIN
DISORDERS SUCH AS MULTIPLE SMALL STROKES CAUSED BY THE CLOGGING OF BRAIN
ARTERIES IN MANY CASES DOCTORS CAN CONCLUSIVELY DIAGNOSE ALZHEIMER'S ONLY
AFTER THE PATIENT'S DEATH BY EXAMINING THE BRAIN

THE ABNORMALITY FOUND BY THE NIH TEAM IS A BREAKDOWN IN A MICROSCOPIC GATE
IN CELLS' OUTER MEMBRANES THAT CONTROLS THE FLOW OF POTASSIUM IONS INTO THE
CELLS MANY SPECIALIZED GATES EXIST IN CELLS THROUGHOUT THE BODY THEY
REGULATE QUANTITIES OF ELECTRICALLY CHARGED ATOMS WITHIN CELLS SUCH AS
POTASSIUM AND CALCIUM THAT PLAY CRITICAL ROLES IN METABOLISM

IN BRAIN CELLS LONGTERM CHANGES IN THE OPERATION OF SUCH ION CHANNELS ARE
KNOWN TO BE INVOLVED IN THE FORMATION OF MEMORIES THAT SUGGESTS SOMETHING
GOES AWRY WITH THEM IN PEOPLE WITH ALZHEIMER'S DISEASE SAID DR ALKON
BRAIN CELLS FROM LIVING PATIENTS RARELY ARE ACCESSIBLE FOR STUDY BUT THE
SCIENTISTS GUESSED THE SUSPECTED MALFUNCTION OCCURS ELSEWHERE SUCH AS IN
EASILY OBTAINED SKIN CELLS

IN COLLABORATION WITH RESEARCHERS AT BURKE MEDICAL RESEARCH INSTITUTE WHITE
PLAINS NY DR ALKON'S TEAM EXAMINED CERTAIN SKIN CELLS CALLED
FIBROBLASTS FROM 13 SUBJECTS WITH ALZHEIMER'S DISEASE AND 17 CONTROL
SUBJECTS WITHOUT IT WHEN A CHEMICAL THAT BLOCKS THE POTASSIUM CHANNEL WAS
APPLIED TO CELLS OF THE NORMAL PEOPLE A CHAIN REACTION WAS TRIGGERED THAT
LET CALCIUM IONS RUSH INTO THE CELLS BUT THE CALCIUM RUSH DIDN'T OCCUR IN
ANY OF THE CELLS FROM ALZHEIMER'S PATIENTS INDICATING THE POTASSIUM
CHANNELS THAT NORMALLY INITIATE SUCH A SURGE WEREN'T WORKING

IF THE FINDING IS CONFIRMED A TEST MIGHT BE DEVELOPED TO SCREEN PEOPLE FOR
THE DISEASE BASED ON SMALL SKIN SAMPLES BECAUSE THERE'S NO EFFECTIVE
TREATMENT FOR THE DISEASE SUCH TESTS MAY ENGENDER MORE SOCIAL EMOTIONAL
AND FINANCIAL COSTS THAN BENEFITS ON THE OTHER HAND A NUMBER OF POSSIBLE
TREATMENTS ARE UNDER DEVELOPMENT COUPLED WITH SCREENING TESTS THEY SOMEDAY
MAY ENABLE EARLY INTERVENTION AND MITIGATION OF THE DISEASE

DR ALKON SAID THE POTASSIUMCHANNEL DEFECTS MAY CAUSE SUBTLE COGNITIVE
DYSFUNCTION IN PEOPLE WITH ALZHEIMER'S DISEASE LONG BEFORE THEIR MEMORY
LOSS IS OBVIOUS A POSSIBILITY HIS TEAM PLANS TO INVESTIGATE 9309010110
930901 TECHNOLOGY BRIEF ESCAGENETICS CORP COMPANY ENZON TO WORK ON
IMPROVING CANCER DRUG

ESCAGENETICS CORP A SAN CARLOS CALIF PLANT BIOTECHNOLOGY CONCERN SAID
IT ENTERED A RESEARCH COLLABORATION WITH ENZON INC A BIOMEDICAL RESEARCHER
OF PISCATAWAY NJ TO DEVELOP IMPROVED VERSIONS OF THE CANCER DRUG TAXOL
AND RELATED COMPOUNDS

TAXOL APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR USE IN TREATING
OVARIAN CANCER ALSO SHOWS PROMISE IN FIGHTING BREAST CANCER AND OTHER
CANCERS HOWEVER SOME PATIENTS EXPERIENCE ALLERGIC REACTIONS TO THE DRUG
OR DEVELOP DRUG RESISTANCE THE TWO COMPANIES SAID THEY HOPE TO REDUCE
TAXOL'S SIDE EFFECTS THUS IMPROVING THE DRUG'S THERAPEUTIC MISSION

ESCAGENETICS SAID ITS UNIT PHYTOPHARMACETICALS INC WILL POOL ITS CHEMICAL
GENETICS AND TISSUE CULTURE CAPABILITY WITH ENZON'S PROPRIETARY TECHNOLOGY
KNOWN AS PEGNOLOGY ENZON'S WORK INVOLVES ATTACHING A POLYETHYLENE GLYCOL
MOLECULE TO A DRUG TO DISGUISE IT FROM THE IMMUNE SYSTEM AND REDUCE THE
LIKELIHOOD OF ALLERGIC REACTIONS 9309010109 930901 CENTERBANK TO ACQUIRE
A BANK

WATERBURY CONN CENTERBANK SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO
ACQUIRE BANK OF WATERBURY FOR 2 MILLION IN STOCK AND THE ASSUMPTION OF
CERTAIN LIABILITIES

UNDER TERMS OF THE PROPOSED AGREEMENT BANK OF WATERBURY SHAREHOLDERS WILL
RECEIVE ONE CENTERBANK SHARE FOR EACH 57592 SHARES THEY HOLD BANK OF
WATERBURY CURRENTLY HAS ABOUT 12 MILLION SHARES OUTSTANDING

THE ACQUISITION PLAN REQUIRES APPROVAL BY REGULATORS AS WELL AS BY BOTH
BANKS' BOARDS AND THEIR SHAREHOLDERS BANK OF WATERBURY HAS ABOUT 51
MILLION IN ASSETS CENTERBANK HAS ABOUT 22 BILLION IN ASSETS AND ABOUT
123 MILLION SHARES 9309010108 930901 INTERNATIONAL JERICHO RESIDENTS
MIFFED THAT NO ONE ASKED THEM ABOUT AUTONOMY PLAN  BY AMY DOCKSER
MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL

JERICHO OCCUPIED WEST BANK WHEN THE NEWS BROKE THAT ISRAEL AND THE
PALESTINE LIBERATION ORGANIZATION HAD AGREED ON A PLAN FOR PALESTINIAN
SELFRULE IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO THERE WAS
DANCING IN THE STREETS OF GAZA BUT IN JERICHO RESIDENTS WERE INDIGNANT
THAT THEY HADN'T BEEN CONSULTED

JERICHO A HALFHOUR DRIVE FROM JERUSALEM IS SURROUNDED BY THE JORDAN
RIVER THE DEAD SEA AND THE MOUNT OF TEMPTATION WHERE THE BIBLE SAYS JESUS
SPENT 40 DAYS FASTING THIS GEOGRAPHY HAS HELPED TO KEEP THE TOWN RELATIVELY
ISOLATED FROM THE POVERTY AND ROCKTHROWING CONFRONTATIONS WITH ISRAELI
SOLDIERS THAT CHARACTERIZE LIFE IN THE GAZA STRIP

TRAFFIC IN JERICHO CONSISTS MAINLY OF BICYCLES LAZILY CIRCLING THE MAIN
SQUARE THE MAIN STREET IS LINED WITH PALM AND FIG TREES AND CLUSTERS OF
DATES AND CITRUS HANG PRETTILY FROM SHOP AWNINGS THE NOTION THAT JERICHO
WILL BE A TESTING SITE IN THE PEACE PROCESS IS AN UNWELCOME SURPRISE TO SOME
RESIDENTS

FEW EXPRESS FAITH IN THE GAZA AND JERICHO FIRST PLAN THEY SPEAK DARKLY
ABOUT ITS ORIGINS SAYING IT IS ALL THE IDEA OF THE AMERICANS OR THE SAUDI
ARABIANS OR THE ISRAELIS EVEN THOUGH IT WAS PLO LEADER YASSER ARAFAT WHO
FIRST SUGGESTED JERICHO MIGHT BE A GOOD PLACE TO START IMPLEMENTING
PALESTINIAN SELFRULE ON THE WEST BANK THEY COMPLAIN THAT THE PLO NEVER
ASKED THEM IF THEY WANTED TO PARTICIPATE IN THE EXPERIMENT

THE PLO REPRESENTS US BUT THEY NEVER ASKED US WHAT WE THOUGHT OR WHAT WE
WANTED SAYS AHMAD AREKAT A LAWYER WHO COMPLAINED THAT MR ARAFAT
CIRCUMVENTED THE PALESTINIAN DELEGATION TO THE WASHINGTON PEACE TALKS OF
WHICH HIS COUSIN SA'EB IS A MEMBER THE OCCUPIED TERRITORIES ARE ONE
ENTITY AND JERICHO AND GAZA SHOULDN'T BE SPLIT FROM THEM THE ONLY SOLUTION
ACCEPTABLE IS FULL ISRAELI WITHDRAWAL FROM ALL THE OCCUPIED TERRITORIES
INCLUDING EAST JERUSALEM

THE RESENTMENT STEMS FROM THE CONFUSION SURROUNDING THE PLAN'S DETAILS AND
UNCERTAINTY ABOUT WHERE ALL THIS WILL LEAD SOME PEOPLE HAVE PUT OFF BUYING
CARS OR HOMES IN THE BELIEF THAT PRICES WILL CHANGE AFTER PALESTINIAN
SELFRULE IS ESTABLISHED OTHERS CAN'T ACCEPT THE PLO'S SUDDEN CHANGE IN
TACTICS AFTER YEARS OF NURTURING THE IDEA THAT THE ONLY SOLUTION TO THE
CONFLICT IS AN INDEPENDENT PALESTINIAN STATE WITH JERUSALEM AS THE CAPITAL
MANY JERICHO RESIDENTS FIND IT DISCONCERTING THAT THE PLO HAS AGREED TO
START WITH LESS

ALL THE TALK IS ABOUT GAZA AND JERICHO ARE THEY GOING TO FORGET ABOUT THE
REST OF OUR HISTORY IN THIS LAND MY SONGS AREN'T JUST FOR JERICHO THEY
TELL A WHOLE STORY OF OUR ROOTS HERE AND GENERATION AFTER GENERATION OF
PALESTINIANS ON THIS LAND SAYS OMAR ALJALLAD A MUSICIAN AND FOLK SINGER
NOW MY LEADERS ARE SUDDENLY TELLING ME I NEED TO TELL A NEW STORY FOR A NEW
OCCASION

NOT EVERYONE HAS BEEN CAUGHT OFF GUARD AT THE MOUNT OF TEMPTATION
RESTAURANT THE OWNERS ARE EXPANDING FROM 600 TO 1300 SEATS AND SUPERVISING
CONSTRUCTION NEXT DOOR OF JERICHO'S FIRST HOTEL SINCE THE 1967 WAR A
70ROOM STRUCTURE WITH A SWIMMING POOL RAID ABD ALRAZIQ WHO MANAGES THE
FAMILYRUN RESTAURANT SAYS EXPANSION BEGAN AFTER THE PEACE TALKS STARTED
WHERE THERE'S PEACE BUSINESS IS GOOD HE SAYS

MOST RESIDENTS SEEM TO HAVE ADOPTED AN OUTLOOK BEST CHARACTERIZED BY JAMEEL
S KHALAF THE MAYOR OF JERICHO WHO WHEN ASKED ABOUT THE TOWN'S PROSPECTS
PREFERRED TO TALK ABOUT THE PAST HE CHEERFULLY ADMITTED HE HAD NO IDEA HOW
THE PALESTINIAN POLICE FORCE WOULD WORK OR ANY OTHER ASPECT OF PALESTINIAN
SELFRULE IN JERICHO FOR THAT MATTER SAYING THE PLO HADN'T KEPT HIM
INFORMED INSTEAD HE RECOUNTED JERICHO'S BIBLICAL HISTORY AND ITS MORE
RECENT PAST AS THE WINTER RESORT FOR KINGS SUCH AS HAILE SELASSIE OF
ETHIOPIA AND ARAB LEADERS SUCH AS KING HUSSEIN OF JORDAN

PERHAPS BECAUSE JERICHO HAS WITNESSED 10000 YEARS OF RULERS KINGS AND
WARS MR KHALAF ISN'T TOO EXCITED ABOUT THE PROSPECT THAT HIS TOWN COULD BE
PART OF A BREAKTHROUGH IN THE ISRAELIARAB CONFLICT

WE HAVE TO WAIT AND SEE WHAT HAPPENS IT'S STILL TOO EARLY TO TELL HE
SAYS LEADERS SAY YES LEADERS SAY NO BUT UNTIL THEY SIGN SOMETHING
THERE'S NO NEED TO RUSH I CAN'T SAY IF WE WILL BE HAPPY OR SAD IN JERICHO
WE ALWAYS HAVE TIME 9309010107 930901 AMERICAN WATER WORKS CO

VOORHEES NJ AMERICAN WATER WORKS CO SAID IT COMPLETED ITS ACQUISITION
OF FOUR MIDWEST WATER UTILITIES FROM AVATAR HOLDINGS INC CORAL GABLES
FLA

THE SALE FOR MORE THAN 55 MILLION WAS ANNOUNCED IN FEBRUARY THE FOUR
UTILITIES INDIANA CITIES WATER CO MISSOURI CITIES WATER CO OHIO
SUBURBAN WATER CO AND NORTHERN MICHIGAN WATER CO HAVE ASSETS OF ABOUT
120 MILLION

GEORGE JOHNSTONE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERICAN WATER
WORKS CALLED THE AVATAR PROPERTIES A PERFECT COMPLEMENT TO OUR OPERATIONS
IN INDIANA MISSOURI AND OHIO WHERE SUBSIDIARIES ALREADY SERVE ABOUT
525000 PEOPLE MICHIGAN WATER IS AMERICAN WATER WORKS' FIRST PRESENCE IN
MICHIGAN 9309010104 930901 MARKETING BRIEF NEXTEL COMMUNICATIONS INC
 DIGITAL NETWORK IS ACTIVATED FOR CALIFORNIA CUSTOMERS

NEXTEL COMMUNICATIONS INC FORMERLY FLEET CALL INC SAID IT ACTIVATED ITS
FIRST DIGITAL NETWORK FOR MOBILE RADIO USERS IN SOUTHERN CALIFORNIA

NEXTEL A PROVIDER OF DISPATCH SERVICES FOR TAXICABS AND OTHER FLEET
OPERATIONS SAID THE DIGITAL NETWORK WILL ALLOW CUSTOMERS TO USE A SINGLE
HANDSET FOR VOICE DISPATCH AND PAGING SERVICES THE NEW NETWORK IS MORE
POWERFUL THAN OLDER ANALOG DISPATCH SYSTEMS

THE COMPANY WHICH IS BASED IN RUTHERFORD NJ WILL INITIALLY TEST THE
DEVICES ON 500 SUBSCRIBERS FOR TWO TO FOUR MONTHS OVER THE NEXT FEW WEEKS
NEXTEL EXPECTS THAT COVERAGE WILL EXTEND FROM SANTA BARBARA TO PALM SPRINGS
TO NORTHERN SAN DIEGO COUNTY AND THAT MOST OF CALIFORNIA WILL BE COVERED BY
EARLY 1994 9309010103 930901 INTERNATIONAL JAPAN INCHES TOWARD
DEREGULATION BUT ECONOMISTS DON'T SEE QUICK FIXES  BY DAVID P
HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL

TOKYO JAPAN'S NEW GOVERNMENT AFTER WEEKS OF TALKING ABOUT DEREGULATING
THE ECONOMY TO BENEFIT CONSUMERS TOOK A FEW STEPS IN THAT DIRECTION ALBEIT
BABY ONES

PRIVATE ECONOMISTS IN JAPAN SAY THE CAUTIOUS DEREGULATION PROPOSALS WHICH
GOVERNMENT MINISTERS DESCRIBED AS THE CORE OF THEIR EFFORTS TO PULL THE
NATION OUT OF ITS ECONOMIC SLUMP MIGHT HELP IN THE LONG TERM BUT AREN'T
LIKELY TO HAVE MUCH EFFECT IN THE SHORT RUN

OFFICIALS SAID THE PROPOSALS STILL IN THE EARLY STAGES OF DISCUSSION ARE
INTENDED TO INCREASE BUSINESS OPPORTUNITIES IN JAPAN EXPAND MARKET ACCESS
AND PASS ON THE BENEFITS OF THE HIGH YEN TO CONSUMERS

FOR INSTANCE VARIOUS MINISTRIES HAVE SUGGESTED ALLOWING THE TRANSMISSION
AND RECEPTION OF INTERNATIONAL TELEVISION BROADCASTS EASING LICENSE
RESTRICTIONS ON NEW LIQUOR STORES ALLOWING IMPORTERS TO SET THEIR OWN
TESTING STANDARDS FOR SOME GOODS AND RAW MATERIALS AND LIBERALIZING TAXI
FARES AND TRUCKING RATES

TO IMPROVE MARKET ACCESS THE GOVERNMENT SAID IT IS LOOKING AT PLANS TO
COMPUTERIZE IMPORT APPLICATIONS AND TO ELIMINATE THE NEED TO OBTAIN APPROVAL
FOR THE MANUFACTURE AND IMPORT OF CERTAIN PHARMACEUTICALS AND OTHER
PRODUCTS

OFFICIALS ALSO SAID THEY INTEND TO LOWER PRICES OF SOME CONSUMER GOODS AND
OF UTILITY CHARGES SUCH AS GAS AND ELECTRICITY BY CAPITALIZING ON THE YEN'S
20 APPRECIATION THIS YEAR A HIGH YEN SHOULD MAKE IMPORTED GOODS AS WELL
AS GOODS AND SERVICES RELIANT ON IMPORTED RAW MATERIALS LESS EXPENSIVE IN
JAPAN BUT THAT HAS BEEN SLOW TO HAPPEN THE BANK OF TOKYO ESTIMATES THAT
SPREADING THE BENEFITS OF THE YEN'S RISE MORE WIDELY COULD PROVIDE A FIVE
TRILLION YEN ABOUT 50 BILLION BOOST TO THE ECONOMY

THE GOVERNMENT PLANS TO RELEASE A PACKAGE OF EMERGENCY ECONOMIC MEASURES
LATER THIS MONTH CONSISTING LARGELY OF DEREGULATORY PROPOSALS SUCH AS THOSE
UNVEILED YESTERDAY TODAY WAS LIKE ANNOUNCING THE MENU SAID GOVERNMENT
SPOKESMAN MASAYOSHI TAKEMURA

DEREGULATION WILL HAVE A VERY SLOW INVISIBLE IMPACT AND IN THAT SENSE
IT'S GOING TO BE DISAPPOINTING SAID DONALD KIMBALL SENIOR ECONOMIST AT
MITSUBISHI BANK YOU SIMPLY CAN'T DEPEND ON ANY SORT OF DEREGULATION TO
SNAP THIS ECONOMY OUT OF RECESSION IT TAKES TIME TO REWRITE REGULATIONS 
YOU DON'T JUST SUDDENLY SWEEP THEM OFF THE BOOKS HE SAID

EVEN IF EFFECTIVE MEASURES CAN BE IMPLEMENTED QUICKLY SOME ECONOMISTS ARGUE
THAT THE RESULTS OF DEREGULATION ARE LIKELY TO BE MIXED AT FIRST LOWER
PRICES WOULD LEAVE CONSUMERS WITH MORE MONEY TO SPEND BUT AT THE SAME TIME
WOULD REDUCE THE INCOME OF PRODUCERS AND RETAILERS WHO MAY CUT EMPLOYEES
AND OVERHEAD SAID ROBERT FELDMAN AN ECONOMIST AT SALOMON BROTHERS ASIA
LTD WHILE OVER THE LONG RUN NEW CONSUMER DEMAND WOULD SUPPORT BUSINESS
GROWTH HE SAID YOU HAVE A LOT OF TURBULENCE IN THE MEANTIME

BANK OF TOKYO ECONOMIST SOICHI ENKYO SAID THAT WITHIN TWO TO THREE YEARS
DEREGULATION IF IT ACTUALLY OCCURS COULD HAVE SEVERAL EFFECTS IT
LIKELY WOULD SPREAD THE BENEFITS OF THE YEN'S APPRECIATION AND BRING DOWN
CONSUMER PRICES IT COULD BOOST PRODUCTIVITY AT MANY INEFFICIENT INDUSTRIAL
SECTORS SUCH AS DISTRIBUTION AND SERVICES AND IT COULD IMPROVE THE
USJAPAN TRADE IMBALANCE TO BOOT

THE JAPANESE MARKET WILL BECOME MORE OPEN AND IN THE SAME PROCESS JAPANESE
DEMAND WILL BE STIMULATED MR ENKYO SAID

BUT IN THE SHORT TERM EVEN MR ENKYO THINKS THE ECONOMY NEEDS STRONGER
MEDICINE THAN DEREGULATION MANY ECONOMISTS PRESCRIBE A COMBINATION OF
FISCAL STIMULUS SUCH AS A HEFTY TAX CUT AND LOWER INTEREST RATES STARTING
WITH A HALFPOINT REDUCTION IN THE DISCOUNT RATE 9309010102 930901
INTERNATIONAL BRIEF KOMATSU LTD JAPAN CONCERN CUTS FORECAST FOR
FISCALYEAR PROFIT SALES

KOMATSU LTD A MAJOR JAPANESE MAKER OF CONSTRUCTION MACHINERY REVISED
DOWNWARD ITS EARLIER FORECASTS FOR CONSOLIDATED SALES AND EARNINGS FOR THE
CURRENT FISCAL YEAR ENDING MARCH 31 1994

THE COMPANY NOW EXPECTS PRETAX PROFIT OF 19 BILLION YEN 183 MILLION DOWN
39 FROM THE PREVIOUS FORECAST OF 31 BILLION YEN NET INCOME IS EXPECTED TO
TOTAL FIVE BILLION YEN PREVIOUSLY THE COMPANY THOUGHT IT WOULD HAVE NET OF
10 BILLION YEN

KOMATSU ALSO LOWERED ITS SALES FORECAST 33 TO 880 BILLION YEN FROM 910
BILLION YEN

FOR THE PAST FISCAL YEAR KOMATSU'S PRETAX PROFIT TOTALED 3076 BILLION YEN
WHILE ITS NET TOTALED 304 BILLION YEN SALES TOTALED 86993 BILLION YEN

KOMATSU BLAMED THE PROLONGED SOFTNESS IN THE CONSTRUCTION MACHINERY MARKET
IN JAPAN IN ADDITION THE APPRECIATION OF THE YEN IS CUTTING INTO KOMATSU'S
PROFITABILITY THE COMPANY SAID THE YEN'S APPRECIATION SQUEEZES THE
COMPANY'S RETURNS FROM EXPORTS 9309010101 930901 WHO'S NEWS HUTCHISON
WHAMPOA DISCLOSES RESIGNATION OF MANAGING DIRECTOR  SPECIAL TO
THE WALL STREET JOURNAL

HONG KONG THE MANAGEMENT STRUCTURE OF HONG KONG BILLIONAIRE LI KASHING'S
COMPANIES WAS SHAKEN UP WITH AN ANNOUNCEMENT THAT SIMON MURRAY RESIGNED AS
MANAGING DIRECTOR OF CONGLOMERATE HUTCHISON WHAMPOA LTD

MR MURRAY ALSO RESIGNED HIS OTHER POSTS WITHIN THE GROUP TO TAKE AN
UNIDENTIFIED POST IN THE REGION HUTCHISON WHAMPOA SAID MR MURRAY WHO HAD
BEEN WITH THE GROUP FOR THE PAST NINE YEARS ALSO RESIGNED AS CHAIRMAN OF
HONGKONG ELECTRIC HOLDINGS LTD AND AS AN EXECUTIVE DIRECTOR OF CHEUNG KONG
HOLDINGS LTD

MR LI OWNS ABOUT 35 OF CHEUNG KONG WHICH HOLDS 42 OF HUTCHISON
HUTCHISON IN TURN OWNS ABOUT 35 OF HONGKONG ELECTRIC

THE MANAGEMENT CHANGES ALSO ELEVATE RICHARD LI THE YOUNGER SON OF LI
KASHING TO THE POSTS OF DEPUTY CHAIRMAN OF HUTCHISON WHAMPOA HE ALSO
BECOMES DIRECTOR OF HONGKONG ELECTRIC AND ITS POWER COMPANY SUPPLIER
HONGKONG ELECTRIC CO

RICHARD LI WON WIDESPREAD PRAISE FOR HIS ROLE AT STAR TV THE SATELLITE
BROADCASTER OWNED BY HUTCHISON AND THE LI FAMILY AND THE SALE OF CONTROL OF
STAR TO AUSTRALIA'S NEWS CORP AT THE END OF JULY

MR MURRAY WILL REMAIN A NONEXECUTIVE DIRECTOR OF HUTCHISON WHAMPOA AS
WELL AS A CONSULTANT TO THE BOARD HE ALSO BECOMES A NONEXECUTIVE DIRECTOR
OF CHEUNG KONG AND HONGKONG ELECTRIC

RUMORS OF MR MURRAY'S DEPARTURE HAD SWIRLED FOR SOMETIME AS THE EXECUTIVE
GOT BLAMED FOR HUTCHISON WHAMPOA'S ILLFATED EXPANSIONS OUTSIDE OF THE
REGION AND INTO THE OIL AND GAS BUSINESS OF CANADA AND THE UK'S
TELECOMMUNICATIONS MARKET TWO AREAS THAT HAVE DOGGED THE CHEUNG KONG
GROUP'S EARNINGS FOR THE PAST FEW YEARS

HUTCHISON WHAMPOA SAID CANNING FOK WILL BECOME GROUP MANAGING DIRECTOR
DIRECTLY ASSUMING THE TITLE PREVIOUSLY HELD BY MR MURRAY MR FOK HAD BEEN
AN EXECUTIVE DIRECTOR OF HUTCHISON WHAMPOA HE ALSO BECOMES DEPUTY CHAIRMAN
OF HONGKONG ELECTRIC 9309010100 930901 CHEVRON WINS SUPPORT FROM MOSCOW 
FOR PIPELINE SERVING KAZAKH OIL FIELD  BY ANDY PASZTOR STAFF
REPORTER OF THE WALL STREET JOURNAL

CHEVRON CORP HAS OBTAINED ESSENTIAL RUSSIAN GOVERNMENT BACKING FOR A
PROPOSED 12 BILLION PIPELINE ACROSS SOUTHERN RUSSIA TO EXPORT OIL FROM THE
COMPANY'S GIANT TENGIZ FIELD IN KAZAKHSTAN

CAPPING MONTHS OF ONAGAIN OFFAGAIN NEGOTIATIONS WITH CHEVRON RUSSIA'S
PARLIAMENT RECENTLY GAVE ITS BLESSING TO THE PIPELINE VENTURE WHICH IS
CRITICAL TO THE COMPANY'S PLANS TO DEVELOP TENGIZ AND EVENTUALLY EXPORT MORE
THAN 500000 BARRELS OF CRUDE A DAY TO THE WEST DIRECTLY FROM THE LANDLOCKED
FIELD

AT THE SAME TIME CHEVRON AND THE CONSORTIUM PUSHING THE PROJECT HAS DECIDED
ON A PREFERRED ROUTE STRETCHING MORE THAN 1300 MILES FROM REMOTE WESTERN
KAZAKHSTAN TO THE BLACK SEA OIL PORT OF NOVOROSSIYSK THE ROUTE IS DESIGNED
TO REDUCE OVERALL COSTS AND MINIMIZE ENVIRONMENTAL PROBLEMS BY USING
EXISTING RUSSIAN PIPELINES ALONG CERTAIN SECTIONS THIS PROPOSED ROUTE
THROUGH RUSSIA INSTEAD OF A LONGER POLITICALLY RISKIER ROUTE THROUGH
TURKEY THAT NOW APPEARS TO BE ON THE BACK BURNER CLEARLY IS THE LOWCOST
WAY OF GETTING IT DONE FROM A CONTRACTOR'S POINT OF VIEW SAID RICHARD
MATZKE PRESIDENT OF CHEVRON'S OVERSEAS PETROLEUM UNIT

SINCE IT ANNOUNCED ITS AGREEMENT LAST SUMMER TO JOINTLY DEVELOP THE FIELD
WITH THE KAZAKH GOVERNMENT THE SAN FRANCISCO OIL COMPANY HAS SAID LITTLE
ABOUT THE STATUS OF THE PIPELINE DISCUSSIONS BUT MR MATZKE INDICATED IN AN
INTERVIEW LAST WEEK THAT COST ESTIMATES AND DETAILED ENGINEERING STUDIES FOR
THE PREFERRED RUSSIAN ROUTE ARE CLOSE TO COMPLETION A TEAM LED BY BECHTEL
GROUP IS EXPECTED TO PROVIDE A DETAILED FEASIBILITY STUDY AND CONSTRUCTION
PROPOSAL FOR THE PROJECT BY EARLY NEXT MONTH

ABOUT 500 MILES OF THE PROPOSED LINE WOULD BE NEW CONSTRUCTION AS RECENTLY
AS LAST OCTOBER BECHTEL PROJECTED THE TOTAL COST AT 850 MILLION AND
SKETCHED OUT A DIFFERENT ROUTE EXTENDING THE LINE FARTHER SOUTH INTO RUSSIA
BEFORE IT TURNED WESTWARD THE PLANNED CAPACITY OF THE LINE REMAINS 15
MILLION BARRELS A DAY INDICATING THAT THE CONSORTIUM EXPECTS OTHER OIL
PRODUCERS TO SHIP AS MUCH OIL THROUGH THE SYSTEM AS CHEVRON EVEN IF THE
TENGIZ FIELD IS FULLY DEVELOPED

IN SPITE OF THE PROGRESS HUGE FINANCIAL TECHNICAL AND DIPLOMATIC HURDLES
REMAIN THE CONSORTIUM PUT TOGETHER BY THE GOVERNMENT OF OMAN HASN'T YET
ASSEMBLED A FINANCING PACKAGE AND CHEVRON SO FAR HASN'T AGREED TO TAKE AN
EQUITY STAKE IN THE PIPELINE IT APPEARS STRONGLY OPPOSED TO PROVIDING
CORPORATE GUARANTEES TO PROSPECTIVE LENDERS

TO ENTICE MOSCOW TO GRANT NECESSARY APPROVALS AND PARTICIPATE IN THE TENGIZ
PIPELINE CHEVRON WILL SPEND MILLIONS OF DOLLARS IN THE NEXT FEW YEARS
UPGRADING AND EXPANDING RUSSIA'S EXISTING PIPELINE NETWORK FOR THE SHORT
TERM RUSSIA HAS AGREED IN PRINCIPLE TO ACCEPT AS MUCH AS 130000 BARRELS A
DAY OF TENGIZ CRUDE AND EXCHANGE IT FOR RUSSIAN CRUDE THAT CHEVRON CAN
EXPORT EVENTUALLY RUSSIA STANDS TO COLLECT HEFTY FEES IF THE PIPELINE IS
BUILT TO SHIP LARGE VOLUMES OF TENGIZ OIL THROUGH ITS TERRITORY CHEVRON'S
PLANS CALL FOR HAVING THE TENGIZ PIPELINE BUILT BY 1995 AT THE EARLIEST

BUT MR MATZKE EMPHASIZED THAT CHEVRON ISN'T PLACING ALL OF ITS BETS ON
RUSSIAN COOPERATION WITHOUT WHICH THE PROJECT COULD COLLAPSE SHORTLY AFTER
BORIS YELTSIN BECAME RUSSIA'S PRESIDENT MR MATZKE RECALLED HE PERSONALLY
ADVISED ME TO REMEMBER THAT NOVOROSSIYSK IS IN RUSSIA AND TENGIZ IS IN
KAZAKHSTAN NOTING THAT OTHER LARGE WESTERN OIL CONCERNS ALSO HAVE MAJOR
INTERESTS IN THE REGION THE CHEVRON EXECUTIVE SAID THAT IN THE LONG RUN IT
MAY BE NECESSARY TO CONSTRUCT MORE THAN ONE PIPELINE WE'VE GOT TO HAVE A
VARIETY OF WAYS OF EXPORTING OIL HE SAID EXPLAINING THAT EACH OF THE
WESTERN COMPANIES MAY WANT ACCESS TO NORTHERN AND SOUTHERN ROUTES
9309010099 930901 BUSINESS BRIEF HN MANAGEMENT HOLDINGS INC MOST
HOLDERS FAVOR MERGER OF A UNIT WITH QUALMED

CLOSELY HELD HN MANAGEMENT HOLDINGS INC WOODLAND HILLS CALIF SAID
HOLDERS OF MORE THAN 90 OF ITS COMMON SHARES OUTSTANDING VOTED IN FAVOR OF
MERGING THE COMPANY'S HEALTH NET UNIT WITH QUALMED INC A
MANAGEDHEALTHCARE CONCERN BASED IN PUEBLO COLO

AN HN SPOKESMAN SAID THE CALIFORNIA WELLNESS FOUNDATION SOLE HOLDER OF HN'S
CLASS B COMMON SHARES ALSO AGREED TO VOTE IN FAVOR OF THE MERGER IN
EXCHANGE FOR TWO SEATS ON THE BOARD OF THE MERGED COMPANY A CONDITION HE
SAID HAS BEEN AGREED TO

HE SAID HOLDERS OF 34 OF QUALMED'S STOCK OUTSTANDING MOST OF THEM
INSIDERS HAVE AGREED TO VOTE IN FAVOR OF THE MERGER 9309010098 930901
BUSINESS BRIEF MARTECH USA INC ADVISER HIRED TO CONSIDER 
ALTERNATIVES INCLUDING SALE

MARTECH USA INC SAID IT HIRED AN INVESTMENT COMPANY FIRST BOSTON CORP TO
EXPLORE STRATEGIC ALTERNATIVES FOR MAXIMIZING SHAREHOLDER VALUE INCLUDING
POSSIBLE SALE OF THE ENVIRONMENTAL CLEANUP AND CONSTRUCTION CONCERN

MARTECH OFFICIALS SAID A DECISION HADN'T BEEN MADE WHETHER IT WOULD BE SOLD
A MARTECH SPOKESWOMAN SAID THE COMPANY WANTS TO MAXIMIZE HOLDER VALUE IN
SOME WAY BECAUSE THE STOCK PRICE HAS BEEN STAGNANT AND THE CURRENT STOCK
PRICE DOESN'T REFLECT THE VALUE OF THE COMPANY

THE ANCHORAGE ALASKA COMPANY HAS ABOUT 97 MILLION SHARES OUTSTANDING ITS
SHARES WERE QUOTED AT 8875 UP 150 OR 203 IN LATE TRADING YESTERDAY
ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID ITS CURRENT DOMESTIC
CONTRACT BACKLOG OF MORE THAN 150 MILLION IS ITS HIGHEST EVER HAVING
INCREASED NEARLY FOURFOLD OVER THE PAST TWO YEARS

FIRST BOSTON IS A SUBSIDIARY OF CS FIRST BOSTON GROUP INC WHICH IS A UNIT
OF SWISSBASED CS HOLDING 9309010097 930901 BUSINESS BRIEF MIDWEST
GRAIN PRODUCTS INC SIGNIFICANTLY LOWER' PROFIT EXPECTED IN CURRENT
QUARTER

MIDWEST GRAIN PRODUCTS INC ATCHISON KAN SAID THAT BASED ON PRELIMINARY
RESULTS IT EXPECTS ITS CURRENT FIRSTQUARTER EARNINGS WILL BE
SIGNIFICANTLY LOWER THAN THOSE OF A YEAR AGO

MIDWEST GRAIN SAID IT WAS HURT BY MUCH HIGHER WHEAT AND SHIPPING COSTS AS A
RESULT OF FLOOD DAMAGE TO FIELDS RAIL LINES AND ROADS IN THE MIDWEST IN
THE FISCAL FIRST QUARTER ENDED SEPT 30 1992 THE COMPANY EARNED 36
MILLION OR 37 CENTS A SHARE

SEPARATELY MIDWEST GRAIN SAID IT CONCLUDED AN AGREEMENT WITH PRINCIPAL
FINANCIAL GROUP OF DES MOINES IOWA FOR 25 MILLION IN SENIOR NOTES TO HELP
FUND ITS 43 MILLION DISTILLERY EXPANSION IN PEKIN ILL WHICH IS SCHEDULED
FOR COMPLETION BY EARLY 1995

THE NOTES CARRY AN ANNUAL INTEREST RATE OF 668 WITH INTEREST PAYMENTS DUE
SEMIANNUALLY THE FIRST PAYMENT ON PRINCIPAL IS DUE AUG 1 1998 IN THE
AMOUNT OF 2273000 THE FINAL PAYMENT IS TO BE MADE AUG 1 2008 THE
COMPANY SAID 9309010096 930901 POLITICS & POLICY CAPITAL JOURNAL 
 BY GERALD F SEIB

SOME FOLKS UP IN NEW HAMPSHIRE ARE FIGHTING THE NORTH AMERICAN FREE TRADE
AGREEMENT WHICH IN ITSELF ISN'T UNUSUAL BUT THERE'S PLENTY UNUSUAL ABOUT
THIS GROUP IT INCLUDES PEOPLE WHO WORKED FOR THE PRESIDENTIAL CAMPAIGNS OF
PATRICK BUCHANAN JERRY BROWN AND ROSS PEROT ALL DRAWN TOGETHER BY A RALPH
NADER ORGANIZATION

THESE IDEOLOGICAL MUTANTS ARE A MOTLEY COALITION ACKNOWLEDGES VICKY
TURNER EXECUTIVE DIRECTOR OF THE NADER GROUP AND A LEADER OF THE PACK BUT
SHE SAYS THE COALITION ALSO REPRESENTS THE WAY THAT POLITICS ARE GOING
NOW

PRECISELY SO AND THAT OUGHT TO WORRY BOTH PRESIDENT CLINTON AND THE
REPUBLICANS PLENTY NAFTA IS EMERGING AS A CLASSIC POLITICAL WEDGE ISSUE
THAT IS SPLINTERING BOTH PARTIES

FAR MORE INTRIGUING THOUGH IS THE POSSIBILITY THAT THE NAFTA DEBATE WILL
BE AN EVENT THAT CRYSTALLIZES A NEW AND BROADER POLITICAL MOVEMENT THAT HAS
DEFIED DEFINITION SO FAR THIS WOULD BE AN ANTIESTABLISHMENT MOVEMENT
BASED ON ECONOMIC NATIONALISM POPULIST CAUSES AND GOVERNMENT REFORMS AND
MANNED BY POLITICAL MISFITS FROM ACROSS THE OLD AND OUTDATED IDEOLOGICAL
SPECTRUM

NAFTA'S FOES ARE A SNAPSHOT OF THIS MOVEMENT TODAY COLLECTIVELY THEY
REPRESENT AN AMERICAN POLITICAL DIASPORA PEOPLE WHO FEEL THE ELITES AND
MONEYED SPECIAL INTERESTS HAVE CAST THEM OUT OF SYSTEM AND CEASED TO WORRY
ABOUT THEIR ECONOMIC CONCERNS THIS IS REFLECTED IN THE ARGUMENT THAT NAFTA
IS AN INSIDERS' DEAL THAT WILL SEND JOBS TO MEXICO HURTING THE COMMON
WORKER WHILE ALLOWING MULTINATIONAL CORPORATIONS TO REAP THE PROFITS

MR BUCHANAN WHO IS TRYING TO TAP INTO THESE SENTIMENTS CALLS THESE PEOPLE
THE PEROTISTAS PLUS HIS POINT IS THAT MR PEROT BEGAN TO CULTIVATE THIS
NEW STRAIN LAST YEAR BUT DIDN'T BRING IT TO FULL POTENTIAL NAFTA MAY BE
THE ISSUE THAT PULLS DISENCHANTED FOOT SOLDIERS FROM THEIR OLD POLITICAL
CAMPS ON THE RIGHT AND LEFT AND DRAWS THEM TOGETHER TO FIGHT FOR A SPECIFIC
CAUSE ON NEW GROUND

THE BROADER RISK FOR BOTH DEMOCRATS AND REPUBLICANS IS THAT ONCE PEOPLE WHO
HAVE BEEN FOLLOWING SUCH IDEOLOGICALLY DIVERSE CHARACTERS AS MR NADER MR
BUCHANAN AND JESSE JACKSON GET TOGETHER TO FIGHT NAFTA THEY MAY FIND THEY
AGREE ON MORE THAN THAT

CERTAINLY THERE IS THE POTENTIAL FOR A BROADER AGENDA OF DISENCHANTMENT THE
NEW HAMPSHIRE ANTINAFTA GROUP FOR INSTANCE FIRST CAME TOGETHER TO FIGHT
FOR CONGRESSIONAL TERM LIMITS BEYOND THAT WHETHER YOU WORKED FOR JERRY
BROWN MR PEROT OR MR BUCHANAN IN 1992 YOU PROBABLY DON'T LIKE FOREIGN
AID DON'T WANT TO GET INVOLVED IN BOSNIA AND WANT SWEEPING CAMPAIGN FINANCE
REFORM

IT'S THE WHOLE AMERICAFIRST POLICY SAYS MR BUCHANAN THERE IS THE
POTENTIAL OUT THERE FOR A WINNING COALITION

THE KEY POLITICAL QUESTION OF COURSE IS WHO WILL SEIZE THIS COALITION MR
BUCHANAN SAYS HE'D LIKE TO SEE THE REPUBLICANS DO IT BUT IF NAFTA IS THE
MOVEMENT'S TOUCHSTONE FOR NOW THE REPUBLICANS WHOSE LAST PRESIDENT
NEGOTIATED THE DEAL AND WHOSE CONGRESSIONAL VOTES WOULD APPROVE IT AREN'T
EXACTLY IN A PRIME POSITION

DEMOCRATS AS A WHOLE DON'T LIKE NAFTA AS MUCH BUT THEY HAVE A PRESIDENT WHO
GENUINELY BELIEVES IT IS AN ECONOMIC WINNER AND AN ADMINISTRATION COMMITTED
TO SEEING IT THROUGH CONGRESS SO DEMOCRATS AREN'T MUCH BETTER POSITIONED TO
APPEAL TO PEOPLE ENERGIZED BY NAFTA

YET NEITHER REPUBLICANS NOR DEMOCRATS HAVE TO CEDE THIS POLITICAL TERRAIN TO
MR PEROT ON EITHER THE NARROW ISSUE OF NAFTA OR ON THE BROADER POPULIST
AGENDA THAT IS PULLING TOGETHER THE DISENCHANTED FOR HIS PART MR CLINTON
COULD START PULLING BACK THE DISENCHANTED BY DOING A MUCH BETTER JOB OF
FITTING NAFTA INTO A VISION OF THE FUTURE THAT APPEALS TO THE WORKADAY
AMERICAN

SOME OF HIS ADVISERS ARE TRYING INSTEAD OF QUIBBLING ABOUT WHETHER TO FOCUS
WHITE HOUSE ENERGIES ON HEALTHCARE REFORM OR NAFTA WHICH IS WHAT CLINTON
AIDES HAVE LAPSED INTO DOING THESE ADVISERS WANT TO WEAVE THE TWO
TOGETHER INTO A BROADER VISION OF CHANGE THAT WILL CREATE A MORE COMPETITIVE
ECONOMY IN THE 1990S THE ARGUMENT AMERICA WON'T HAVE REAL ECONOMIC VIGOR
UNTIL IT DRIVES DOWN STIFLING HEALTHCARE COSTS FOR EMPLOYERS ON THE ONE
HAND WHILE AGGRESSIVELY PRYING OPEN FOREIGN MARKETS FOR EXPORTS ON THE
OTHER

IT WOULD BE A GOOD START BUT IT'S LIKELY THAT REGARDLESS OF NAFTA'S FATE
THE RADICALLY DISENCHANTED VOTERS IT'S BRINGING FORWARD WILL BE A FORCE FOR
A LONG TIME 9309010095 930901 THE JITTERY JAPANESE QUAKE EVERY TIME 
THE EARTH MOVES  AND IT MOVES A LOT SO THEY MONITOR HABITS OF
CLAMS ALLIGATORS AND EVEN CATFISH  BY CLAY CHANDLER STAFF
REPORTER OF THE WALL STREET JOURNAL

SAGAMI BAY JAPAN AT THE BOTTOM OF THIS MURKY HARBOR SOUTH OF TOKYO THE
JAPANESE GOVERNMENT IS LAUNCHING A MULTIMILLIONDOLLAR STAKEOUT HIGHTECH
CAMERAS WILL SCAN THE OCEAN FLOOR TECHNICIANS WILL KEEP WATCH
ROUNDTHECLOCK

THE TARGET OF THIS PROBE THE DREADED SHIROURI CLAM

WHEN LARGE COLONIES OF THE RARE MOLLUSK WERE DISCOVERED SEVERAL YEARS AGO
EMBEDDED IN THE BAY'S MUDDY FLOOR SCIENTISTS WERE ALARMED THE SPECIES
THRIVES IN AREAS PRONE TO EARTHQUAKES WHERE HYDROGEN SULFIDE IS PLENTIFUL
EXPERTS FEAR THE PRESENCE OF THE PALEWHITE BIVALVES FORESHADOWS A MAJOR
SEISMIC SHOCK SO TO FIND OUT MORE THE GOVERNMENT IS SHELLING OUT

THIS NATION IS TRANSFIXED BY EARTHQUAKES AND LITTLE WONDER IT GETS
HAMMERED BY THEM REGULARLY THE JAPANESE ARCHIPELAGO STRADDLES FOUR
CONSTANTLY SHIFTING PIECES OF THE EARTH'S CRUST SOME GEOLOGISTS SAY THE
REGION MAY BE MORE SUSCEPTIBLE TO SEISMIC DESTRUCTION THAN ANY OTHER SECTION
OF THE PLANET

HUNDREDS OF TREMORS RATTLE DISHES AND WINDOWS NOT TO MENTION NERVES 
THROUGHOUT THE NATION EVERY YEAR ON JULY 12 A QUAKE MEASURING 78 ON THE
RICHTER SCALE FLATTENED AN ISLAND NEAR HOKKAIDO AND KILLED AT LEAST 202
PEOPLE THE GREAT KANTO EARTHQUAKE OF 1923 DEVASTATED TOKYO CLAIMING
140000 LIVES TOKYO RESIDENTS WHO ARE MARKING TODAY'S 70TH ANNIVERSARY
OF THAT CATASTROPHE WITH DISASTER DRILLS LIVE IN TERROR THAT ANOTHER BIG
ONE MIGHT STRIKE AT ANY MOMENT

IT WAS A MISTAKE FOR HUMANS TO LIVE ON THESE ISLANDS TO BEGIN WITH SAYS
HIROSHI HOTTA THE OCEANOGRAPHER WHO HEADS THE GOVERNMENT'S TEAM OF MOLLUSK
MONITORS

THE JAPANESE AREN'T THE ONLY CITIZENS OF THE WORLD TO DWELL ON PALPITATING
GROUND MANY CALIFORNIANS FACE A SIMILAR PLIGHT WITH ATTITUDES OF OPTIMISM
OR DENIAL

BUT IN JAPAN THE CONSTANT FEAR OF GEOLOGICAL ARMAGEDDON HAS RAISED
EARTHQUAKE PREDICTION TO A NATIONAL OBSESSION AND BRED ITS OWN RICH LORE
DOES THE GOVERNMENT'S FASCINATION WITH CLAMS SEEM DIPPY THEN CONSIDER THE
CITY OF TOKYO'S EFFORT TO PREDICT EARTHQUAKES BY OBSERVING THE WAY CATFISH
SWIM JAPANESE FOLKLORE HAS IT THAT THE WHISKERED FISH ARE UNIQUELY
SENSITIVE TO EARTHQUAKES BUT THAT TURNS OUT TO BE A RED HERRING AFTER 16
YEARS OF STUDY SCIENTISTS DETERMINED THAT EVEN SLIGHT VIBRATIONS FROM
INEFFECTUAL TREMORS MAKE THE CATFISH SWIM STRANGELY

OR HOW ABOUT THE CLAIMS OF SEVERAL JAPANESE ZOO KEEPERS WHO SWEAR THAT
CERTAIN ALLIGATORS SCREAM BEFORE BIG JOLTS AT THE ATAGAWA TROPICAL AND
ALLIGATOR GARDEN ON THE EVERTREMBLING IZU PENINSULA SOUTH OF TOKYO
SATOSHI KIMURA KEEPS MORE THAN 400 ALLIGATORS AND CROCODILES OF 20 DIFFERENT
SPECIES THE CREATURES SUNBATHING IN THE MUD ON ONE RECENT DAY RARELY
RAISE A RACKET BUT WHEN ESPECIALLY SEDATE SPECIES LIKE THE SIAMESE AND NILE
ALLIGATORS SCREECH TOGETHER HE SAYS MAJOR EARTHQUAKES FOLLOW

AND WHAT DOES A SCREAMING ALLIGATOR SOUND LIKE LIKE HUMANS SNORING ONLY A
LOT LOUDER SAYS MR KIMURA YOU CAN HEAR IT 200 YARDS AWAY HE SAYS

IN NEARBY KAWANA THE AMA ELDERLY WOMEN WHO DIVE FOR SHELLFISH SAY
THEY TOO CAN SENSE A QUAKE THE DIVERS MOST OF WHOM ARE IN THEIR 70S
SCAMPERED OUT OF THE OCEAN A FEW DAYS BEFORE A SERIES OF TEMBLORS HIT THE
AREA EARLIER THIS SUMMER THEY WERE SPOOKED BY STRANGE SUBMARINE VIBRATIONS
IT WAS LIKE SOMEONE BEATING A BIG DRUM UNDERWATER SAYS ONE WOMAN

OTHER SELFSTYLED EXPERTS SAY THEY HAVE SEEN EARTHQUAKE WARNINGS IN THE
CLOUDS SOME FARMERS SAY BEES MYSTERIOUSLY DISAPPEAR BEFORE A TREMOR THE
RUMORED SIGHTING OF AN OARFISH A RARE DEEPSEA CREATURE SAID TO SURFACE
BEFORE BIG QUAKES HAS ON OCCASION SENT THE TOKYO STOCK MARKET TUMBLING

MOST GEOLOGISTS AROUND THE WORLD HAVE THROWN UP THEIR HANDS IN FRUSTRATION
OVER THE DIFFICULTIES OF TRYING TO FORECAST QUAKES BUT JAPAN'S RESEARCHERS
SOLDIER ON SINCE THE 1960S JAPAN HAS LAUNCHED A HALFDOZEN FIVEYEAR PLANS
FOR EARTHQUAKE PREDICTION NONE HAS MET WITH MUCH SUCCESS SCIENTISTS HAVE
STRUNG SEISMOLOGICAL INSTRUMENTS UP AND DOWN THE JAPANESE COAST THEY
MONITOR TIDAL MOVEMENTS WELLDEPTHS VOLCANIC ACTIVITY AND OTHER NATURAL
PHENOMENA AROUND THE CLOCK LATELY THEY HAVE BEGUN DRILLING COSTLY
SEISMOMETER SHAFTS DEEP INTO TOKYO BAY

JAPAN'S EARTHQUAKE ANGST GOES BACK CENTURIES MODERN SCIENTISTS IN FACT
MAY HAVE TAKEN A CUE FROM JAPANESE LEGEND WHICH HAS IT THAT EARTHQUAKES ARE
CAUSED BY THE THRASHING OF A GIANT CATFISH WHO CARRIES THE EARTH ATOP ITS
BACK IT WAS SUPPOSED THAT THE POWERFUL GOD KASHIMA HELD THE FISH STILL BY
PRESSING A GIANT STONE AGAINST ITS HEAD BUT NOW AND THEN THE DEITY SHIRKED
HIS DUTIES

AFTER THE ANSEI EARTHQUAKE STRUCK TOKYO IN 1855 CATFISH IMAGES TURNED UP IN
HUNDREDS OF WOODBLOCK PRINTS SOME ARTISTS VENERATED THE CATFISH ON THE
THEORY EARTHQUAKES HARMED THOSE WITH PROPERTY BUT CREATED NEW JOBS FOR THE
COMMON MAN ONE PRINT SHOWS A CATFISH POUNDING A FIN ON THE BACK OF A RICH
MAN WHO VOMITS COINS ON GLEEFUL CRAFTSMEN CATFISH BECAME SUCH A POWERFUL
ICON OF SOCIAL REFORM THAT EVENTUALLY THE TOKUGAWA SHOGUN BANNED DRAWINGS
OF THEM

THE 1923 TOKYO EARTHQUAKE STILL LOOMS LARGE IN JAPANESE MEMORY THIS YEAR
NEWSPAPER ADS WITH DRAWINGS OF A GIANT CATFISH EXHORTED RESIDENTS TO BE
PREPARED JAPAN HAS MADE GREAT STRIDES IN TIGHTENING BUILDING CODES SINCE
THEN BUT BY ONE ESTIMATE MORE THAN 9000 PEOPLE WOULD BE KILLED AND 148000
INJURED IF AN EARTHQUAKE LIKE THE 1923 TEMBLOR HIT TOKYO AGAIN

SOME SCIENTISTS FIND FAULT WITH JAPAN'S ATTEMPTS TO OUTSMART MOTHER NATURE
ROBERT GELLER A GEOPHYSICIST AT THE UNIVERSITY OF TOKYO SAYS THE PUBLIC
SHOULD BE CLEARLY INFORMED THAT EARTHQUAKE PREDICTION PRESENTLY IS NOT
POSSIBLE

BUT THE GOVERNMENT'S CLAM WATCHERS DON'T AGREE EVEN THOUGH IT ISN'T CLEAR
WHAT THEIR EFFORTS WILL REVEAL IT TURNS OUT THE CLAMS WHICH SEEM TO
CONGREGATE AROUND ACTIVE QUAKE FAULTS ARE HARD TO SEE EVEN WITH THE HELP OF
HIGHTECH CAMERAS THEY DON'T MOVE AROUND SO MUCH SAYS MR HOTTA THE
OCEANOGRAPHER IN FACT THEY MOSTLY JUST SIT THERE QUIETLY IN THE MUD

NEVER MIND HIS TEAM IS UNDAUNTED BY THE SILENCE OF THE CLAMS NOW HIS MEN
HAVE NOTICED STRANGE CLUSTERS OF RARE UNDERSEA TUBE WORMS IN THE AREA COULD
THESE MR HOTTA WONDERS BE THE REAL HARBINGER HIS ANXIOUS NATION SEEKS
9309010094 930901 ECONOMY CREDITCARD DELINQUENCIES KEEP FALLING 
 BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL

AS MANY CONSUMERS REMAIN CAUTIOUS OVER DEBT ACCUMULATION DELINQUENCIES ON
INSTALLMENT LOAN PAYMENTS HAVE DROPPED TO THEIR LOWEST POINT IN YEARS THE
TREND BODES WELL FOR AN EASING OF CREDIT TO OTHERS READY TO RESUME SPENDING

MASTERCARD INTERNATIONAL FOR INSTANCE TOLD BANK CARD ISSUERS LAST WEEK
THAT US DELINQUENCIES IN THE SECOND QUARTER REACHED A 10YEAR LOW OF 364
OF OUTSTANDING BALANCES A DROP OF 065 PERCENTAGE POINT FROM A YEAR
EARLIER AS CREDIT LOSSES ALSO TOOK A SHARP DOWNTURN A DELINQUENCY OCCURS
WHEN A CARDHOLDER OMITS THE MINIMUM PAYMENT FOR TWO STRAIGHT MONTHS

OTHER FORMS OF INSTALLMENT DEBT ARE TRENDING DOWN AS WELL AT FORD CREDIT
995 OF AUTO LOANS ARE CURRENT 05 MORE THAN USUAL SIMILARLY BENEFICIAL
CORP IS ENJOYING HISTORIC LOW DELINQUENCY RATES ON ITS 11 BILLION LOAN
PORTFOLIO MUCH OF IT HOMEEQUITY LOANS AND THE AMERICAN BANKERS
ASSOCIATION EXPECTS TO REPORT NEXT WEEK THAT CONSUMER DEBT EXCLUDING
MORTGAGES IN THE SECOND QUARTER DROPPED FURTHER FROM THE FOURYEAR LOW SEEN
IN THE FIRST QUARTER

OUR FORECASTERS DIDN'T EXPECT DELINQUENCIES TO GO DOWN FOR THIS MANY
QUARTERS IN A ROW SAID BRAD HENNIG A SPOKESMAN FOR VISA USA THE OTHER
MAJOR CREDIT CARD PROCESSOR USUALLY AS THE ECONOMY EXPANDS FOLLOWING A
RECESSION A PICKUP IN SPENDING INCREASES OVERALL DEBT AND DELINQUENCIES AS
WELL

THIS TIME AROUND THE REBOUND IN SPENDING IS LESS THAN USUAL AND IT
COINCIDES WITH A SKITTISH ATTITUDE TOWARD DEBT FOR FINN CASPERSEN CHAIRMAN
OF BENEFICIAL THE LOW DELINQUENCY RATE IS A SIGN THAT THE CONSUMER IS MORE
SOBER ABOUT THE ECONOMY THE FEAR OF LOSING A JOB IS KEEPING THEM CAREFUL
ABOUT DEBT HE ADDED

FEWER MISSED PAYMENTS MEANS WRITEOFF LOSSES FOR FINANCIAL INSTITUTIONS
WILL GET LESS AND LESS SAID ALLEN SINAI OF ECONOMIC ADVISORS AN AFFILIATE
OF LEHMAN BROTHERS SUBSEQUENTLY THEY SHOULD BE MORE AGGRESSIVE AND
WILLING TO MAKE NEW LOANS SINCE THERE'S MUCH LESS LIKELIHOOD LOANS WILL GO
BELLY UP

AT CHASE MANHATTAN CORP ONE OF THE LARGEST CARD ISSUERS DEEDIE
DOMENICALI VICE PRESIDENT OF CARD MARKETING SAID THAT LIKE THE REST OF
THE CARD INDUSTRY THE MARKED IMPROVEMENT ON CREDIT LOSSES HAS CAUSED US TO
BECOME INCREASINGLY AGGRESSIVE ABOUT GOING AFTER NEW BUSINESS THE
EXPANSION IS TAKING THE FORM OF EXPANDED CREDIT LINES AND MORE MAILINGS SHE
SAID A RECENT FEDERAL RESERVE BOARD SURVEY ALSO SHOWED MORE BANKS WILLING
TO EXPAND CONSUMER LOANS

TIGHTER CREDIT STANDARDS AND A WILLINGNESS TO ACT MORE QUICKLY ON DEADBEATS
ARE ALSO RESPONSIBLE FOR THE IMPROVED PICTURE EQUALLY THE RECESSION OF A
FEW YEARS AGO LED TO MANY PERSONAL BANKRUPTCIES TAKING THOSE LOANS OFF THE
BOOKS AND CAUSED CONSUMERS TO REDUCE SPENDING SO THAT CONSUMER DEBT
ACTUALLY FELL IN 1991 LOWER DELINQUENCY RATES NOW ARE TO SOME EXTENT
SIMPLY THE RESULT OF THAT STINGINESS

BUT SOME TROUBLE SPOTS REMAIN ECONOMISTS EXPECT THE MORTGAGE BANKERS
ASSOCIATION TO REPORT TODAY THAT HOME MORTGAGE DELINQUENCIES SHOWED THE SAME
RISING PATTERN IN THE SECOND QUARTER AS THE FIRST AFTER IMPROVING
SIGNIFICANTLY LAST YEAR AND AT BENEFICIAL MR CASPERSEN FINDS IT BIZARRE
THAT DELINQUENCIES ARE SO LOW AND CHARGEOFFS ARE NOT COMING DOWN MUCH AT
ALL THE REASON HE SUSPECTS IS THAT PEOPLE WITH SPOTLESS CREDIT RECORDS
ARE STILL LOSING JOBS

ON THE BRIGHT SIDE NOW THAT CONSUMERS ARE SPENDING AGAIN AND ADDING TO
DEBT THEY ARE NOT DOING SO BEYOND THEIR MEANS AS A PERCENTAGE OF
DISPOSABLE PERSONAL INCOME INSTALLMENT DEBT AS OF JUNE WAS STILL ONLY
1639 BELOW A YEAR AGO AND FAR DOWN FROM ITS PEAK OF 1871 IN OCTOBER
1986 REPORTS IRWIN KELLNER CHIEF ECONOMIST OF CHEMICAL BANKING CORP TOTAL
CONSUMER DEBT INCLUDING MORTGAGES WAS 9149 OF DISPOSABLE PERSONAL INCOME
AT LATEST COUNT AT THE END OF THE FIRST QUARTER BELOW THE HIGH POINT OF
9205 IN DECEMBER 1991

THE UNUSUAL NATURE OF THE ECONOMIC RECOVERY HAS CHANGED THE CONSUMER
MINDSET ALTOGETHER WHEN IT COMES TO FRIVOLOUS SPENDING SAID MR KELLNER
THE CUTBACK ON INSTALLMENT DEBT WHICH BEGAN WHEN THE 1986 TAX ACT
ELIMINATED THE DEDUCTIBILITY OF NONMORTGAGE INTEREST PAYMENTS NOW HAS
TAKEN ON A LIFE OF ITS OWN HE ADDED

MR SINAI WHO RECENTLY CONSTRUCTED A QUARTERLY CONSUMER DEBT INDEX SAID
ALL SIGNS ARE THAT CONSUMERS' ABILITY TO REPAY DEBT IS BETTER AND
DELINQUENCY RATES WILL CONTINUE TO MOVE LOWER IN THE SECOND QUARTER THE
INDEX COMPOSED OF EIGHT COMPONENTS INCLUDING DELINQUENCIES SHOWED A
20 IMPROVEMENT FROM THE LAST QUARTER OF 1990 BUT IT WAS STILL 26 HIGHER
THAN THE MID1983 LEVEL NEAR THE START OF THE 1980S BUSINESS EXPANSION

AT THE SAME TIME CARD USAGE IS HIGH BECAUSE OF TIEIN PROGRAMS THAT OFFER
AIRLINE MEMBERSHIP MILES AND DISCOUNTS ON CARS AND OTHER MERCHANDISE AND
MORE SUPERMARKETS ARE LETTING CUSTOMERS USE CREDIT CARDS IT LOOKS LIKE
PEOPLE ARE USING CARDS MORE OFTEN BUT PAYING MORE OFTEN TOO SAID MR
HENNING 9309010093 930901 EXCLAYTON HOMES AIDE PLEADED GUILTY IN 1970S
TO TAX CHARGES RECORDS SHOW  BY LAURIE M GROSSMAN STAFF REPORTER
OF THE WALL STREET JOURNAL

THE FORMER CLAYTON HOMES INC CONTROLLER BLAMED BY THE COMPANY FOR ITS
RECENT TAX PROBLEMS PLEADED GUILTY IN THE LATE 1970S TO CRIMINAL CORPORATE
TAX CHARGES AND WAS REQUIRED TO PAY MORE THAN 30000 IN A CIVIL SUIT FOR
EMBEZZLEMENT COURT RECORDS SHOW

CLAYTON HOMES HAS BLAMED THE FORMER DIVISIONAL CONTROLLER WARREN SCHEDE
FOR THE COMPANY'S FAILURE TO PAY SALES TAXES IN TENNESSEE WHICH HAS MADE
THE COMPANY AND MR SCHEDE SUBJECTS OF A CRIMINAL INVESTIGATION BY THE STATE
DEPARTMENT OF REVENUE ALSO A PARTNERSHIP OWNED BY JAMES CLAYTON CHAIRMAN
AND CHIEF EXECUTIVE AND HIS MOTHER HAS FILED SUIT IN COUNTY COURT IN
KNOXVILLE ALLEGING THAT MR SCHEDE EMBEZZLED FROM MR CLAYTON'S PERSONAL
HOLDINGS MR CLAYTON HAS ALLEGED THAT MR SCHEDE EMBEZZLED MORE THAN 3
MILLION FROM HIM

MR CLAYTON WHO PERSONALLY MADE THE DECISION TO HIRE MR SCHEDE AS A
BOOKKEEPER IN 1978 SAID YESTERDAY HE WASN'T AWARE OF THE 1978 EMBEZZLEMENT
SUIT BUT WAS AWARE OF THE 1979 CRIMINAL TAX CASE HE ADDED THAT HE KEPT MR
SCHEDE ON STAFF BECAUSE MR SCHEDE WAS DOING A GOOD JOB AND APPEARED TO BE
VERY REMORSEFUL

IN 1979 MR SCHEDE PLEADED GUILTY TO SIX CHARGES OF FAILURE TO PAY FEDERAL
CORPORATE TAXES FROM JANUARY 1977 TO JULY 1978 WHILE HE WAS A VICE PRESIDENT
AT A JOHNSON CITY TENN AUTOMOBILE DEALERSHIP JIM CROWDER AUTO MART INC
ACCORDING TO US DISTRICT COURT RECORDS IN GREENVILLE TENN HE WAS FINED
9300 THE AMOUNT OF UNPAID TAXES AND SENTENCED TO TWO CONCURRENT 30DAY
JAIL TERMS AND THREE YEARS OF PROBATION IN 1979 ACCORDING TO THE DOCUMENTS

MR SCHEDE REACHED YESTERDAY AT HIS HOME IN KNOXVILLE TENN DECLINED TO
COMMENT

GUY BLACKWELL A US ATTORNEY WHO PROSECUTED THE CASE SAID HE HAS ASKED
THE FEDERAL BUREAU OF INVESTIGATION TO REVIEW THE PROGRESS OF A DISTRICT
ATTORNEY GENERAL'S CRIMINAL INVESTIGATION INTO THE ACCOUNTING RECORDS MR
SCHEDE WAS RESPONSIBLE FOR AT CLAYTON HOMES THE FBI WILL DETERMINE IF THERE
IS SUFFICIENT EVIDENCE TO PROMPT A FEDERAL INVESTIGATION OF MR SCHEDE SAID
MR BLACKWELL

IN 1979 MR SCHEDE ALSO WAS FOUND TO HAVE EMBEZZLED MORE THAN 100000 FROM
AUTO MART BY A COUNTY CHANCERY COURT JUDGE IN JOHNSON CITY ACCORDING TO
COURT RECORDS THE JUDGE REQUIRED MR SCHEDE TO FORFEIT 30000 IN CASH AND
SOME REAL ESTATE INCLUDING A RANCH HOUSE ON TWO ACRES OF PROPERTY ALONGSIDE
LAKE BOONE TENN WHERE MR CROWDER THE OWNER OF THE JOHNSON CITY TENN
AUTO DEALERSHIP NOW LIVES

IN THE EMBEZZLEMENT SUIT MR SCHEDE SAID IN A WRITTEN STATEMENT THAT HE HAD
BORROWED SUMS FROM THE PLAINTIFF CORPORATION WITHOUT THE KNOWLEDGE OF ITS
PRESIDENT ALL OF WHICH HE INTENDED TO PAY BACK

MR CROWDER THE OWNER OF THE AUTO DEALERSHIP SAID JOE CLAYTON JAMES
CLAYTON'S BROTHER AND VICE PRESIDENT OF CLAYTON HOMES AT THE TIME CAME TO
VISIT HIM IN THE LATE 1970S TO DISCUSS MR SCHEDE

JOE CLAYTON CAME HERE AND I EXPLAINED WHAT WARREN HAD DONE AND HOW HE DID
IT MR CROWDER RECALLED JOE CLAYTON ACCORDING TO MR CROWDER DESCRIBED
MR SCHEDE AS APPEARING TO BE A GOOD ACCOUNTANT

JOE CLAYTON IN AN INTERVIEW YESTERDAY DENIED TALKING TO MR CROWDER ABOUT
MR SCHEDE HE SAYS HE ONLY KNEW THAT THERE WAS A DISPUTE BETWEEN MR SCHEDE
AND HIS FORMER EMPLOYER BUT HE WASN'T AWARE OF ANY LEGAL PROCEEDINGS
CRIMINAL OR CIVIL UNTIL AFTER MR SCHEDE RESIGNED FROM CLAYTON HOMES IN
JUNE 9309010092 930901 LETTERS TO THE EDITOR PHILOSOPHICAL DANGERS 
OF GENETICS RESEARCH

YOUR AUG 12 PAGE ONE ARTICLE SCIENCE BESIEGED STUDYING THE BIOLOGY OF
SEXUAL ORIENTATION HAS POLITICAL FALLOUT TOUCHES UPON THE PERENNIAL DEBATE
ABOUT WHETHER ALL SCIENTIFIC RESEARCH IS INHERENTLY BENEFICIAL DISCUSSION
IS BUILDING AROUND WHETHER OR NOT HOMOSEXUALITY CAN BE GROUNDED IN GENETICS
AND IF SO TO WHAT EXTENT THIS INFORMATION WILL EITHER ADVANCE OR DERAIL
EFFORTS BY GAY PEOPLE TO OBTAIN BASIC RIGHTS

THIS DEBATE WOULD BE INCONSEQUENTIAL IF WE LIVED IN A WORLD WHERE PEOPLE
RESPECTED EACH OTHER'S DIFFERENCES INSTEAD WE RELY ON SCIENCE TO HELP US
SORT OUT ISSUES THAT WE'RE INCAPABLE OF RESOLVING LIKE WHETHER OR NOT
HOMOSEXUALITY IS A CHOICE

HOMOSEXUALITY IS NO MORE A CHOICE THAN HETEROSEXUALITY IS AND EVEN IF IT
WERE SO WHAT MOREOVER WHY MUST THE FAR RIGHT CONDUCT ITS DIABOLICAL
CAMPAIGN AGAINST PEOPLE LIKE MYSELF WHO WANT TO JUST LIVE LIFE THE BEST WAY
WE KNOW HOW

PERHAPS ONE DAY SCIENCE WILL IDENTIFY THE GENETIC UNDERPINNINGS OF HATRED
AND FEAR OF THOSE WHO DON'T FIT INTO A GIVEN SOCIETAL MOLD WHAT A
SCIENTIFIC MILESTONE THAT WOULD BE

YOUR ARTICLE REVEALED THAT SCIENCE MAY SOON BE CAPABLE OF DETERMINING THE
SEXUAL ORIENTATION OF A FETUS WHICH IN TURN COULD LEAD TO THE WHOLESALE
ABORTION OF HOMOSEXUAL BABIES IMAGINE THIS SCENARIO THE ELITES OF
POLITICAL CORRECTNESS GAY ACTIVISTS JOINING FORCES WITH THE STALWARTS OF
TRADITIONAL VALUES PROLIFE ACTIVISTS TO DEFEND THE RIGHTS OF THE INNOCENT
UNBORN STAY TUNED

AT THE END OF SCIENCE BESIEGED WAS THE ANSWER TO AN AGEOLD QUESTION IN
REFERRING TO THE PROSPECT OF GAY GENES BEING IDENTIFIED BEFORE BIRTH AND
THEN ABORTING THE PREGNANCY DR HAMER SAYS WE HAVE AN OBLIGATION TO MAKE
SURE WE DON'T DO THINGS THAT COULD BE USED TO HARM PEOPLE NOW IT CAN BE
TOLD LIFE DOESN'T BEGIN AT BIRTH OR CONCEPTION BUT AT THE POINT THE FETUS
IS DETERMINED TO BE GAY 9309010091 930901 BUSINESS BRIEF KODAK ALLEGES
FUJI PHOTO IS DUMPING COLOR PHOTOGRAPHIC PAPER IN THE US

EASTMAN KODAK CO ACCUSED ARCHRIVAL FUJI PHOTO FILM CO OF SELLING COLOR
PHOTOGRAPHIC PAPER IN THE US AT PRICES AS LOW AS ONEFOURTH OF WHAT IT
CHARGES IN JAPAN

IN AN ANTIDUMPING PETITION FILED YESTERDAY WITH THE COMMERCE DEPARTMENT AND
THE INTERNATIONAL TRADE COMMISSION KODAK ALLEGED THAT FUJI USES PROFITS
FROM MONOPOLYLIKE SALES IN THE JAPANESE MARKET TO SUBSIDIZE DUMPING OF
PAPER IN THE US THE COLOR PAPER IN QUESTION IS MANUFACTURED BY FUJI IN
JAPAN AND THE NETHERLANDS THE PAPER IS USED TO MAKE PRINTS OF PHOTOGRAPHS

A SPOKESMAN FOR FUJI THE ONLY COMPANY NAMED IN THE PETITION SAID FUJI
NEEDS MORE TIME TO STUDY THE FILING BEFORE MAKING A RESPONSE

KODAK DECLINED TO SAY HOW LONG AGO THE ALLEGED DUMPING STARTED BUT
PHOTOGRAPHIC RETAILERS SAY FUJI AS WELL AS AGFA A PHOTOGRAPHY UNIT OF
BAYER AG'S MILES INC HAVE SLASHED PRICES ON COLOR NEGATIVE PHOTOGRAPHIC
PAPER THIS YEAR TO AS LOW AS 25 BELOW KODAK'S LOWEST PRICES

WITH THE YEN AT POSTWAR HIGHS AGAINST THE DOLLAR FUJI AND OTHER JAPANESE
COMPANIES HAVE BEEN UNDER PRESSURE TO RAISE PRICES ON EXPORTS TO THE US
TRADITIONALLY FUJI HASN'T RAISED PRICES TO RECOUP LOSSES FROM CURRENCY
SWINGS BY SLASHING PRICES IN RECENT MONTHS AS THE YEN STRENGTHENED FUJI
HAS PUT EVEN MORE PRESSURE ON ITS PROFIT

KODAK HAS BEEN CUTTING PRICES ON ITS COLOR NEGATIVE PHOTO PAPER FOR MORE
THAN A YEAR LEHMAN BROTHERS ANALYST KIMBERLY RETRIEVI SAID LAST QUARTER
KODAK SAID PRICES WERE DOWN FOR PAPER BUT NOT MORE THAN 5 SHE SAID
ALTHOUGH KODAK HAS REPEATEDLY SAID THAT PAPER PRICES WERE UNDER PRESSURE
IT'S NOT SOMETHING THEY'VE BEEN POINTING TO AS A REASON FOR POOR RESULTS
IN THE IMAGING BUSINESS MS RETRIEVI SAID

THE COMMERCE DEPARTMENT MUST DECIDE WHETHER OR NOT FUJI DUMPED ITS PRODUCT
AND THE ITC MUST RULE ON WHETHER ANY DUMPING CAUSED MATERIAL INJURY TO
KODAK IF THE ITC FINDS SUCH INJURY IT COULD IMPOSE TARIFFS ON FUJI'S COLOR
PHOTOGRAPHIC PAPER THE WHOLE PROCESS COULD TAKE SIX MONTHS TO A YEAR A
KODAK SPOKESMAN SAID 9309010090 930901 FOREIGN EXCHANGE DOLLAR GAINS
ON GDP FIGURES YEN EASES ON REPORTS A LARGE RATE CUT IS POSSIBLE  
BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL

NEW YORK THE DOLLAR GAINED ACROSS THE BOARD ON STRONGERTHANEXPECTED
US GROSS DOMESTIC PRODUCT FIGURES WHILE THE YEN WEAKENED AMID REPORTS
THAT A LARGE JAPANESE INTERESTRATE CUT IS LIKELY

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16765 MARKS UP FROM 16724
MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
10475 YEN UP FROM 10380 YEN STERLING WAS TRADING AT 14915 DOWN A BIT
FROM 14925

ABOUT NOON WEDNESDAY THE DOLLAR WAS TRADING AT 10496 YEN AND AT 16774
MARKS

THE DOLLAR WAS MOSTLY FLAT TUESDAY PRIOR TO THE RELEASE OF THE GDP NUMBERS
EARLY IN NORTH AMERICAN TRADING THOUGH IT DID GAIN SLIGHTLY AGAINST THE YEN
ON ENDOFTHEMONTH SHORTCOVERING

BUT NEWS THAT THE GDP OR THE VALUE OF GOODS AND SERVICES HAD GROWN 18 IN
THE SECOND QUARTER UP FROM A PRELIMINARY FIGURE OF 16 PUSHED UP THE
DOLLAR A FULL PFENNIG AND HALF A YEN WITHIN MINUTES

MANY OBSERVERS HAD EXPECTED THE SECONDQUARTER GDP TO BE REVISED DOWNWARD
AT LEAST PARTLY BECAUSE OF THE BEARISH EXPORT NUMBERS CONTAINED IN JUNE'S
TRADE DATA

TRADERS HOWEVER SAID THE IMPORTANCE OF THE GDP FIGURES HAD BEEN
EXAGGERATED IN A THIN VACATIONSEASON MARKET AND THAT TUESDAY'S GAIN
REPRESENTED NO REAL CHANGE IN THE DOLLAR'S DIRECTION

GROWTH OF 18 IS NOT ENOUGH TO TURN PEOPLE INTO WILD DOLLAR BULLS SAID
TIM MURPHY A CORPORATE DEALER AT FIRST BANK NATIONAL ASSOCIATION IN
MINNEAPOLIS

MORE IMPORTANT HE ADDED WOULD BE FRIDAY'S AUGUST EMPLOYMENT FIGURES
THOUGH HE SAID EVEN THE IMPACT OF THAT KEY DATA WOULD BE MUTED BECAUSE OF A
US HOLIDAY MONDAY

MEANWHILE THE YEN WEAKENED TUESDAY AFTER A JAPANESE NEWS REPORT THAT THE
OFFICIAL 25 DISCOUNT RATE MIGHT BE CUT AS MUCH AS THREEQUARTERS OF A
POINT IN SEPTEMBER ALTHOUGH THE MARKET HAS LONG EXPECTED A JAPANESE EASING
MOST PREDICTIONS HAVE BEEN FOR A RATE CUT OF A QUARTER TO HALF A PERCENTAGE
POINT LOWER RATES USUALLY LESSEN THE ATTRACTIVENESS OF A CURRENCY BY
REDUCING THE RETURN ON DEPOSITS DEVALUED IN THAT CURRENCY

JAPAN'S GOVERNMENT HOWEVER STILL HASN'T CONCEDED THAT A RATE CUT IS
NECESSARY ALTHOUGH FIGURES RELEASED TUESDAY SHOWED JAPANESE INDUSTRIAL
PRODUCTION DOWN 45 IN JULY FROM A YEAR EARLIER HIROHISA FUJII JAPAN'S
CONSERVATIVE FINANCE MINISTER TOLD REPORTERS THAT THE GOVERNMENT WOULDN'T
RELY ON FISCAL OR MONETARY STEPS TO STIMULATE THE ECONOMY FOR THE TIME
BEING

EMERGING FROM A SPECIAL MEETING OF THE JAPANESE CABINET CALLED TO DISCUSS
THE ECONOMY MR FUJII SAID THE MINISTERS HAD AGREED THAT MONETARY EASING OR
FISCAL POLICY MOVES SUCH AS AN INCOMETAX CUT WOULDN'T BE PART OF A
SEPTEMBER PACKAGE TO REDUCE JAPAN'S TRADE SURPLUS

INSTEAD MR FUJII SAID THE GOVERNMENT WOULD FOCUS ON OPENING JAPANESE
MARKETS TO EXPORTS AS WELL AS PASSING ON TO THE CONSUMER THE BENEFITS OF A
STRONGER YEN THROUGH LOWER GASOLINE AND UTILITY PRICES THE CABINET RELEASED
A LIST OF ABOUT FIFTY MARKETOPENING MOVES THAT ARE BEING CONSIDERED

JAPAN'S TRADE SURPLUS HAS SERVED IN THE PAST TO STRENGTHEN THE YEN IN PART
BECAUSE IT LEAVES JAPANESE BUSINESSES WITH A SURFEIT OF DOLLARS TO SELL FOR
YEN THE CLINTON ADMINISTRATION HAS ALSO TRIED TO ADDRESS JAPAN'S TRADE
SURPLUS BY CALLING FOR A STRONG YEN WHICH MAKES JAPANESE PRODUCTS MORE
EXPENSIVE AND THUS LESS DESIRABLE OVERSEAS 9309010089 930901 MANAGING
YOUR CAREER  BY JOANN S LUBLIN

FEW PEOPLE RELISH WORKING FOR A YOUNGER BOSS BUT MORE ARE DOING SO THESE
DAYS

BETWEEN 1983 AND LAST YEAR THE RANKS OF EXECUTIVES AND MANAGERS UNDER 35
YEARS OLD GREW 22 TO 46 MILLION PEOPLE THE US BUREAU OF LABOR
STATISTICS REPORTS IN THE SAME PERIOD THE NUMBER OF WORKING AMERICANS AGED
45 AND OLDER CLIMBED NEARLY 20

YOUNG SUPERVISORS CAN SEE OLDER EMPLOYEES AS A THREAT TO THEIR AUTHORITY OR
AS POTENTIALLY DIFFICULT SUBORDINATES OLDER INDIVIDUALS MAY RESENT
REPORTING TO A BRASH UPSTART WHOSE CAREER IS RACING AHEAD FASTER THAN THEIR
OWN

POOR ADJUSTMENT TO THE SITUATION CAN BE DISASTROUS A 61YEAROLD MANAGER
FOR ONE PUBLISHING CONCERN BECAME UPSET WHEN A 37YEAROLD ECONOMIST WAS
ASSIGNED TO OVERSEE HIM AND HIS SUCCESSFUL NEWSLETTER OPERATION THE
ECONOMIST ALSO GAINED A VICE PRESIDENT'S TITLE ALTHOUGH HE LACKED
PUBLISHING EXPERIENCE THE MANAGER THOUGHT HE SHOULD HAVE GOTTEN THE TITLE
INSTEAD

I TRIED NOT TO BELITTLE HIM BUT MAYBE I DID THE OLDER MAN RECALLS I AM
SURE I GOT A LITTLE SARCASTIC AT TIMES WHEN SUGGESTIONS WERE MADE BY THE NEW
BOSS THAT I THOUGHT WERE RIDICULOUS TWO YEARS LATER THE UNHAPPY MANAGER
LEFT THE COMPANY IF I HAD TO DO IT OVER I WOULD HAVE RESIGNED
IMMEDIATELY HE ADMITS

YET CAREER STRATEGISTS SAY YOU CAN FLOURISH WORKING FOR SOMEONE MANY YEARS
YOUR JUNIOR SIMPLY BY STEERING CLEAR OF CERTAIN PITFALLS FOR ONE THING
YOU SHOULD COUNTER THE BOSS'S SUSPICION THAT YOU WILL BE TOUGH TO MANAGE
BECAUSE YOU ARE RIGIDLY SET IN YOUR WAYS

YOU MAY HAVE TO UPDATE YOUR WARDROBE BONE UP ON THE LATEST MANAGEMENT GURUS
OR WRITE FEWER LONGWINDED MEMOS THE IDEA IS TO AVOID BEING PERCEIVED AS
WARY OF NEW BUSINESS TRENDS

THE YOUNGER PERSON IS TESTING YOU TO SEE IF YOU ARE STUCK IN AN OLD FRAME
THE ASSUMPTION IS THAT YOU ARE OBSERVES JAY CONGER AN ORGANIZATIONAL
BEHAVIOR PROFESSOR AT MCGILL UNIVERSITY IN MONTREAL IN THE FIRST MONTH
YOU HAVE TO DO SOME THINGS TO SHOW THAT YOU ARE VERY ADAPTABLE TO A YOUNGER
SUPERIOR'S PARTICULAR STYLE HE CONTINUES

SOON AFTER A LARGE EAST COAST UTILITY PROMOTED ONE 32YEAROLD EXECUTIVE HE
CONCLUDED THAT A 50YEAROLD MANAGER REPORTING TO HIM WAS CAUTIOUS AND
RESISTED CHANGE THE BOSS UNSUCCESSFULLY TRIED TO ENCOURAGE THIS MANAGER TO
BE ADAPTIVE AND WORK HARDER HE LATER GAVE THE SUBORDINATE A POOR
PERFORMANCE APPRAISAL THE OLDER MAN FINALLY SOUGHT HELP FROM PELLER MARION
A SAN FRANCISCO EXECUTIVE COACH

WITH COUNSELING DR MARION SAYS THE ANGRY MANAGER REALIZED THAT HE WAS
DIGGING IN HIS HEELS BECAUSE HE RESENTED THE YOUNG NEWCOMER AS
INEXPERIENCED AND IMPULSIVE SHE ASKED HER CLIENT ARE YOU WILLING TO
CHANGE THIS BEHAVIOR IN ORDER TO KEEP YOUR JOB

HE WAS THE OLDER MANAGER HAS BEGUN TO SPEAK UP IN STAFF MEETINGS RATHER
THAN SITTING STERNLY WITH HIS ARMS CROSSED HE NO LONGER RESISTS HIS BOSS'S
NEW IDEAS IT IS A SLOW PROCESS DR MARION ADDS BUT HE IS CHANGING

YOU ALSO NEED TO TAKE STEPS SO YOUR SUPERVISOR DOESN'T VIEW YOUR YEARS OF
EXPERIENCE AS A COMPETITIVE THREAT CAREER EXPERTS SAY YOU MIGHT EVEN
FLATLY TELL THE YOUNGER BOSS I AM NOT OUT TO GET YOUR JOB YOUR EYE
CONTACT TONE OF VOICE GESTURES AND OTHER FORMS OF NONVERBAL BEHAVIOR
SHOULD REINFORCE YOUR PROFESSED INTENT

ANOTHER PITFALL TO AVOID IS PATRONIZING THE YOUTHFUL BOSS YOU CAN SEEM
DISRESPECTFUL JUST BY OFFERING TO SHOW HIM OR HER THE ROPES IF YOU
WOULDN'T SAY THAT TO SOMEONE WHO IS FIVE YEARS OLDER DON'T SAY IT TO
SOMEONE WHO IS FIVE YEARS YOUNGER CAUTIONS MARILYN MOATS KENNEDY A CAREER
COUNSELOR IN WILMETTE ILL

OLIVER HUMAN RESOURCES AN OUTPLACEMENT CONSULTING CONCERN SAYS A
KNOWITALL ATTITUDE APPEARS SO OFTEN AMONG THE OLDER EXECUTIVES IT ADVISES
THAT IT HAS THESE CLIENTS DO VIDEOTAPED ROLEPLAYING BEFORE GOING TO WORK
FOR YOUNGER PEOPLE THE NEW YORK CONCERN SAYS MORE THAN 25 OF THE
EXECUTIVES IT COUNSELS NOW LAND JOBS WITH YOUNGER BOSSES UP FROM ABOUT 12
FIVE YEARS AGO

I TELL THEM TO SHARE THEIR EXPERTISE WITHOUT THEIR ARROGANCE COMING
THROUGH EXPLAINS ADELA OLIVER THE FIRM'S PRESIDENT THEY MUST PUT THEIR
EGO IN THEIR POCKETS

VAN ARSDALE FRANCE AN EMPLOYEETRAINING CONSULTANT AND RETIRED WALT DISNEY
CO EXECUTIVE IN SANTA ANA CALIF SAYS HIS CONSTANT ATTITUDE CHECKS ENABLE
HIM TO GET ALONG WELL WITH A YOUNGER BOSS WITH SUCH A BOSS THE 80YEAROLD
MR FRANCE SAYS HE NEVER YEARNS FOR THE GOOD OL' DAYS AND NEVER SAYS HEY
SON HERE IS WHAT YOU ARE DOING WRONG' I JUST COME UP WITH IDEAS AND THEY
CAN EITHER BUY THEM OR NOT BUY THEM HE ADDS

SOME OLDER EMPLOYEES ALSO FIND THAT RAPID ADAPTATION TO A YOUNGER BOSS CAN
HELP GET THEM PROMOTIONS MARY HORNBY A 50YEAROLD CLERICAL EMPLOYEE FOR
BOOK PUBLISHER PRENTICE HALL IN ENGLEWOOD CLIFFS NJ RECOGNIZED THE NEED
TO ADJUST WHEN A 35YEAROLD MANAGER CHOSE HER TO BE A SUPPLEMENTS EDITOR
LAST YEAR

MS HORNBY WORRIED THAT I WASN'T AS QUICK ON THE PICKUP AS NUMEROUS
COLLEAGUES HALF HER AGE THEIR FACILITY WITH COMPUTERS IS SOMETHING I FELT
BACKWARD ABOUT SHE REMEMBERS SO BEFORE SHE COMMENCED HER NEW JOB SHE
TAUGHT HERSELF ADDITIONAL COMPUTER PROGRAMMING SKILLS

LAST SPRING MS HORNBY WON A PROMOTION AND BECAME AN ASSISTANT TEXTBOOKS
EDITOR NOW SHE NOTES I AM ON A TRACK THAT HAS SEVERAL PROMOTIONS AHEAD
9309010088 930901 TREASURY TO PAY DOWN DEBT SELL 224 BILLION IN
SHORTTERM BILLS

WASHINGTON THE TREASURY PLANS TO PAY DOWN 13 BILLION ON THE PUBLIC DEBT
WITH THE SALE TUESDAY OF ABOUT 224 BILLION IN SHORTTERM BILLS MATURING
BILLS OUTSTANDING TOTAL 2371 BILLION

THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS
MATURING ON DEC 9 1993 AND MARCH 10 1994 RESPECTIVELY

THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G81 THE CUSIP NUMBER
FOR THE SIXMONTH BILLS IS 912794J47

NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000
DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT
FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE
RECEIVED BY 1 PM EDT 9309010087 930901 MARKETING & MEDIA LETTERMAN
SHOW TOPS RIVAL LENO ON OPENING NIGHT  BY ELIZABETH JENSEN 
STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE LATENIGHT WAR BETWEEN NBC'S TONIGHT SHOW WITH JAY LENO
AND CBS'S NEW LATE SHOW WITH DAVID LETTERMAN MAY NOT BE MUCH OF A WAR
AFTER ALL IF THE FIRST NIGHT'S RATINGS ARE ANY INDICATION

MR LETTERMAN PULLED IN IMPRESSIVE NUMBERS AND DREW A FAR LARGER AUDIENCE
THAN JAY LENO ON MONDAY'S OPENING NIGHT PROGRAM BUT HE APPEARED TO
ATTRACT VIEWERS FROM A DIFFERENT POOL MR LENO'S RATINGS WEREN'T HURT MUCH
AT ALL

THE NEW CBS STAR WHO DEFECTED FROM A 1235 AM EDT TIME SLOT ON NBC WHERE
HE FOLLOWED MR LENO FOR A 1135 PM START TIME ON CBS WAS FAR AND AWAY
THE WINNER ON OPENING NIGHT AS EXPECTED IN A CRITICALLY WELLRECEIVED
SHOW MR LETTERMAN TOOK PLENTY OF SHOTS AT HIS OLD EMPLOYER AND TWEAKED CBS
FOR ITS MASSIVE PROMOTION CAMPAIGN FOR HIS NEW PROGRAM

AC NIELSEN CO RATINGS SHOW THAT DAVE DREW 109 OF THE COUNTRY'S 942
MILLION TV HOUSEHOLDS AND A 32 SHARE OF THE HOMES WATCHING TELEVISION AT
THE TIME A RECORD FOR CBS IN THE LATENIGHT TIME PERIOD THAT EASILY
EXCEEDED THE 41 RATING THAT CBS HAS GUARANTEED ADVERTISERS IN THE 29
BIGGEST CITIES HE DID EVEN BETTER WITH 134 OF HOMES

BUT MR LETTERMAN'S FIRST NIGHT WAS UNABLE TO MATCH THE 118 RATING AND 36
SHARE OF VIEWERS NATIONALLY THAT HIS RIVAL MR LENO DREW ON MAY 25 1992
HIS FIRST NIGHT AS PERMANENT HOST OF THE TONIGHT SHOW MR LETTERMAN IS AT
A DISADVANTAGE ONLY 70 OF THE NATION'S HOUSEHOLDS CAN SEE HIM AT THE 1135
PM START TIME FOR THE REST OF THE COUNTRY EXCEPT FOR SIOUX CITY IOWA
WHERE LATE SHOW ISN'T SHOWN AT ALL THE NEW PROGRAM IS AIRED LATER AT
NIGHT

MR LENO'S TONIGHT SHOW LURED 41 OF HOMES NATIONALLY DOWN FROM A 42
AVERAGE FOR THE SUMMER PERIOD TO DATE JULY 1AUG 16 IN THE MAJOR
MARKETS HE TOO DID BETTER WITH 56 OF HOMES AND 14 OF THE TV AUDIENCE
LIKEWISE NIGHTLINE ON ABC HELD ITS OWN WITH A PROGRAM ON HURRICANE
EMILY FINISHING SECOND IN 29 MAJOR MARKETS

MR LETTERMAN DREW HIS AUDIENCE FROM A POOL OF NEW VIEWERS WHO TUNED IN FOR
THE EVENT AS WELL AS FROM VIEWERS WHO HAD BEEN WATCHING SUCH SHOWS AS
ARSENIO HALL ON INDEPENDENT STATIONS

CBS SENIOR VICE PRESIDENT DAVID POLTRACK SAID THE NEW LATE SHOW ATTRACTED
A TOTAL 23 MILLION VIEWERS AND ADDED THAT IT KEPT 80 OF ITS AUDIENCE
THROUGH THE SECOND HALF HOUR WHEN VIEWERS OFTEN TUNE OUT AND GO TO BED THE
PROGRAM WHILE STRONGEST AMONG MR LETTERMAN'S CORE AUDIENCE OF
18TO34YEAROLD MEN ALSO WON IN EVERY DEMOGRAPHIC GROUP

CBS BROADCAST GROUP PRESIDENT HOWARD STRINGER SAID HE IS CONFIDENT THE SHOW
FOR WHICH CBS IS PAYING MR LETTERMAN 14 MILLION ANNUALLY CONSISTENTLY
WILL REACH ITS 41 GUARANTEE ALTHOUGH WE'LL BE RIDING A ROLLER COASTER FOR
A LITTLE WHILE

THE LATENIGHT LANDSCAPE GETS MORE COMPLICATED NEXT WEEK WHEN FOX'S THE
CHEVY CHASE SHOW MAKES ITS DEBUT AT 11 PM EDT THE FOLLOWING WEEK NBC A
UNIT OF GENERAL ELECTRIC CO WILL INTRODUCE ITS REPLACEMENT FOR MR
LETTERMAN AT 1235 AM LATE NIGHT WITH CONAN O'BRIEN WHO IN SOME
MARKETS WILL COMPETE HEADON WITH MR LETTERMAN BECAUSE OF THE LETTERMAN
TAPEDELAYS 9309010086 930901 BUSINESS BRIEF ASTRA AB FIRSTHALF
EARNINGS SURGED ON STRONG ULCER DRUG SALES

ASTRA AB A SWEDISH PHARMACEUTICAL COMPANY SAID PRETAX PROFIT SURGED 58 IN
THE FIRST SIX MONTHS OF THE YEAR TO 367 BILLION KRONOR 4532 MILION
LIFTED BY STRONG SALES OF ULCER MEDICATION LOSEC

SALES OF LOSEC ASTRA'S LARGESTSELLING PRODUCT ROSE 61 TO 328 BILLION
KRONOR IN THE PERIOD TOTAL SALES OF LOSEC INCLUDING SALES THROUGH
LICENSEES WERE APPROXIMATELY 555 BILLION KRONOR UP FROM 330 BILLION
KRONOR A YEAR EARLIER SAID ASTRA

GROUP SALES ROSE 38 TO 1056 BILLION KRONOR BUT THE RISE WAS EXAGGERATED BY
EXCHANGERATE FLUCTUATIONS ADJUSTED FOR EXCHANGERATE MOVEMENTS SALES ROSE
18 IN THE PERIOD BOOSTED BY STRONG VOLUME TRENDS IN MOST MARKETS

ASTRA PROJECTED THAT THE SALES GAIN FOR THE FULL YEAR WOULD BE ROUGHLY ON
THE SAME SCALE AS IN THE FIRST HALF 9309010085 930901 CORDANT AUTODESK
WIN CONTRACT

RESTON VA CORDANT INC AND AUTODESK INC SAUSALITO CALIF WON A
12YEAR DEFENSE CONTRACT TO SUPPLY COMPUTER SYSTEMS TO THE NAVAL FACILITIES
COMMAND INTERGRAPH CORP HUNTSVILLE ALA ALSO RECEIVED A CONTRACT
TOGETHER THE TWO CONTRACTS ARE NOT TO EXCEED 550 MILLION AUTODESK A
SOFTWARE CONCERN WHICH IS A SUBCONTRACTOR ON THE JOB WITH CORDANT SAID IT
COULD NOT BREAK OUT THE VALUE OF ITS SHARE OF THE CONTRACT 9309010084
930901 INSIDE TRACK INSIDERS AT CELESTIAL SEASONINGS SNAP UP IPO
SHARES BUT SNAPPLE IS HOTTER SO FAR  BY WARREN GETLER STAFF
REPORTER OF THE WALL STREET JOURNAL

COULD INSIDERS AT CELESTIAL SEASONINGS INC BE READING SOMETHING POSITIVE IN
THE TEA LEAVES

SENIOR DIRECTORS AND OFFICERS AT THE LEADING US PRODUCER OF HOT HERBAL
TEAS LOADED UP ON SHARES IN THE BOULDER COLO COMPANY AT ITS INITIAL
PUBLIC OFFERING ON JULY 12 FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION SHOW

TYPICALLY IPOS ARE USED AS VEHICLES FOR INSIDERS TO SELL OFF SOME OF THEIR
PRIVATE HOLDINGS HENCE ANY TIME KEY INSIDERS TAKE ADVANTAGE OF AN IPO TO
BUY STOCK WITH THEIR OWN CASH IT MAY BE A BULLISH INDICATOR

INDEED THE PURVEYORS OF LEMON ZINGER TEA ARE HOPING TO SEE SOME ZING IN
THEIR COMPANY'S STOCK I'M VERY BULLISH ON THE STOCK SAYS CELESTIAL'S
VICE PRESIDENT OF OPERATIONS JOHN D HALE MR HALE SNAPPED UP 10000
SHARES AT THE IPO OFFER PRICE OF 20 A SHARE

ADDS CELESTIAL'S CHIEF FINANCIAL OFFICER PHILIP LIVINGSTON WE WANTED TO
HAVE SUBSTANTIAL EQUITY STAKES IN THE COMPANY AND TO PUT OUR OWN MONEY TO
WORK WHERE WE WORK MR LIVINGSTON PICKED UP 5200 SHARES AT THE OFFERING

THE MOVES BY THE TWO OFFICERS AND EIGHT OTHER CELESTIAL INSIDERS TO ACQUIRE
A COMBINED 47825 SHARES OF THE 19 MILLION SHARES ISSUED SEEM PRESCIENT
THUS FAR THE STOCK FIRST TRADED AT 27 ON JULY 13 THEN WITHIN DAYS IT
JUMPED TO A HIGH OF 32375 BUT IT HAS SINCE DRIFTED BACK TO LEVELS AROUND
28 YESTERDAY THE STOCK CLOSED AT 2825 UP 125 IN NATIONAL
OVERTHECOUNTER TRADING

THE QUESTION NOW IS WHY HAS THE STOCK PULLED BACK WHY ISN'T IT SOARING IN
THE BOOMING TEA MARKET LED BY RECENT IPO HIGHFLIER SNAPPLE BEVERAGE CORP

ANALYSTS SAY THE ANSWER LIES PARTLY IN THE FACT THAT THE REAL EXCITEMENT IN
SPECIALTY BEVERAGES THESE DAYS IS IN READYTODRINK BREWED ICED TEAS A
MARKET DOMINATED BY SNAPPLE AND ONLY NOW BEING PROBED BY CELESTIAL THROUGH A
LICENSING AGREEMENT WITH NESTLE SA'S PERRIER

CELESTIAL IS A TEABAG COMPANY SNAPPLE MAKES READYTODRINK ICED TEAS AND
THUS CELESTIAL'S GROWTH IS NOT LIKELY TO BE AS EXPLOSIVE SAYS JEANMICHEL
VALETTE A CONSUMERGOODS ANALYST WITH HAMBRECHT & QUIST IN SAN FRANSICO HE
SAYS THE HERBTEABAG MARKET OF WHICH CELESTIAL HOLDS A 53 SHARE IS
LIKELY TO REMAIN A SINGLEDIGIT GROWTH BUSINESS WHEREAS THE
READYTODRINK TEA SECTOR IS LIKELY TO CONTINUE GROWING AT A HIGH
DOUBLEDIGIT CLIP OR BETTER

MR VALETTE SAYS THE DIP FROM THE STOCK'S HIGH WAS TO BE EXPECTED IN A
MARKET WHERE THERE'S BEEN A LOT OF EXCITEMENT SURROUNDING PUBLIC
OFFERINGS AT CELESTIAL'S CURRENT VALUATION HE RATES THE STOCK A BUY AND
SEES ENCOURAGING NEWS AHEAD ON THE EARNINGS FRONT IN THE NEXT 12 MONTHS

THE COMPANY'S PERSHARE PROFIT ON A PROFORMA BASIS SOARED FOR THE
FISCALTHIRD QUARTER ENDED JUNE 30TO 21 CENTS A SHARE FROM 3 CENTS ON A
FULLY TAXED BASIS EARNINGS WERE 14 CENTS A SHARE FOR THE QUARTER SAYS
EMANUEL GOLDMAN A SENIOR BEVERAGE ANALYST FOR PAINEWEBBER THE LEAD
UNDERWRITER FOR THE CELESTIAL IPO

MR VALETTE SAYS THAT WHILE THE FOURTH QUARTER TYPICALLY THE COMPANY'S
WEAKEST REPORTING PERIOD IS LIKELY TO SHOW A DROP IN PROFORMA EARNINGS 
OR EVEN A TWOCENTASHARE LOSSMARGINS AND EARNINGS SHOULD SEE IMPROVEMENT
NEXT YEAR AS CELESTIAL BEGINS TO BRANCH OUT FROM ITS CORE HOTTEABAG
BUSINESS IN ADDITION TO ITS READYTODRINK LICENSING ARRANGEMENT WITH
PERRIER THE COMPANY RECENTLY INTRODUCED ITS ICED DELIGHT LINE OF HERB TEA
BAGS MEANT FOR COLD BREWING IN THE REFRIGERATOR

THERE ARE A LOT OF POSSIBILITIES FOR UPSIDE EARNINGS SURPRISES SAYS MR
VALETTE IT'S A COMPANY WHERE A LITTLE REVENUE GROWTH GOES A LONG WAY
BECAUSE OF THE GROUP'S RECENT MOVES TO GET COSTS UNDER CONTROL A LOT OF
EVERY MARGINAL DOLLAR GOES TO THE BOTTOM LINE

BOTH MESSRS VALETTE AND GOLDMAN SAY THE COMPANY'S STOCK PERFORMANCE WILL
HINGE LARGELY ON HOW EFFECTIVELY CELESTIAL CAN FIND A STRONG NICHE IN NEW
PRODUCT AREAS ESPECIALLY PREPARED COLD TEAS

THE TIMING OF THE COMPANY'S IPO COMING IN THE WAKE OF ITS LAUNCH INTO THESE
NEW AREAS SEEMS STRATEGIC ANALYSTS SAY PARTICULARLY AS SNAPPLE'S STOCK
HAS BEEN FOLLOWING A CELESTIAL PATH OF ITS OWN

EVIDENTLY THE INSIDERS AT CELESTIAL FELT THAT SNAPPLE WENT PUBLIC TOO CHEAP
AND THAT'S WHY THEY'VE BOUGHT INTO THEIR OWN IPO DEAL SAYS BOB GABELE
PRESIDENT OF CDA/INVESTNET A FT LAUDERDALE FLA FIRM THAT TRACKS INSIDER
INVESTMENT ACTIVITY THEY SAW HOW HOT THE MARKET WAS FOR THESE ALTERNATIVE
BEVERAGE STOCKS AND THEY MUST HAVE FIGURED THEIR STOCK WAS A GOOD BET AT
20 HE SAYS

SNAPPLE BASED IN VALLEY STREAM NY WENT PUBLIC AT 20 IN MIDDECEMBER
AND HIT A HIGH OF 6250 A SHARE BEFORE THE COMPANY ANNOUNCED A 2FOR1
SPLIT IN MIDJUNE THE STOCK WHICH CLOSED YESTERDAY AT 5725 UP 250 ON
DOUBLE THE AVERAGE DAILY VOLUME CONTINUES TO SOAR TO NEW SPLITADJUSTED
HIGHS IN THE PAST THREE DAYS OF TRADING THE STOCK IS UP 117 NOTABLY
THERE'S BEEN NO INDICATION YET OF INSIDER BUYING AT SNAPPLE PERHAPS A SIGN
THAT INSIDERS THERE HAD LITTLE INKLING OF JUST HOW HOT THEIR COLD TEA WOULD
BE AMONG INVESTORS 9309010083 930901 COMMODITIES SOYBEAN AND CORN
FUTURES END SHARPLY LOWER AS WEATHER FORECASTS SHOW NO PROSPECT OF FROST 
 BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO A BARRAGE OF WEATHER FORECASTS CONTAINING NO PROSPECT OF FROST
FOR THE NEXT 10 DAYS PUSHED SOYBEAN AND CORN FUTURES PRICES SHARPLY LOWER

AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY FELL 1075
CENTS TO 663 A BUSHEL AND THE ACTIVELY TRADED DECEMBER CORN CONTRACT WAS
DOWN 3 CENTS TO 237 A BUSHEL

THE CBOT'S GRAIN MARKET HAD RALLIED LAST WEEK ON PERCEPTIONS THAT THIS
YEAR'S YOUNG CROPS IN WESTERN AND NORTHERN CORN BELT REGIONS ARE
PARTICULARLY VULNERABLE TO FROST

YESTERDAY HOWEVER THE NATIONAL WEATHER SERVICE'S EXTENDED 30DAY FORECAST
PREDICTED NORMAL TO BELOW NORMAL TEMPERATURES YIELDING NO HINT OF FROST
BEFORE THE END OF SEPTEMBER AND THE WEATHER SERVICE'S SIXTO10DAY
FORECAST PREDICTED RELATIVELY WARM TEMPERATURES ACROSS MOST OF THE MIDWEST

THAT TOOK FROST OUT OF THE MARKET UNTIL AT LEAST SEPT 9 SAID FRANK
STEARNS GRAIN ANALYST AT REFCO INC THERE WAS NOTHING THERE TO GIVE
IMMEDIATE GRATIFICATION TO THE BULLS

COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY HAD TAKEN LARGE
LONG POSITIONS OR WAGERS THAT CORN AND SOYBEAN FUTURES PRICES WOULD RISE
ANALYSTS SAID YESTERDAY MANY OF THESE FUNDS LIQUIDATED THEIR POSITIONS
EXERTING DOWNWARD PRESSURE ON THE MARKET

REPORTS THAT FARMERS IN SOME REGIONS OF SOUTHERN OHIO HAD STARTED TO HARVEST
A CORN CROP DRIED OUT BY LACK OF RAIN DID LITTLE TO STALL THE MARKET'S
DOWNWARD MOMENTUM THE NATIONAL FARMERS' ORGANIZATION OFFICE IN AUGLAIZE
COUNTY OHIO REPORTED THAT SOME OF THE STATE'S FARMERS WERE HARVESTING CORN
EARLY BECAUSE THEIR CROPS HADN'T RECEIVED THE RAIN THEY NEEDED DURING THE
CRUCIAL TASSLING STAGE OF DEVELOPMENT STUNTING GROWTH OF INDIVIDUAL EARS
OF CORN

ANALYSTS SAID SUCH PROBLEMS ARE RELATIVELY ISOLATED GENERALLY SPEAKING
THEY SAID CORN IN THE EASTERN CORN BELT IS IN GOOD CONDITION

MEANWHILE SOYBEAN PLANTS WHOSE DEVELOPMENT WAS DELAYED BY HEAVY EARLY
SUMMER RAINS IN THE WESTERN AND NORTHERN CORN BELT HAVE IMPROVED RAPIDLY
BECAUSE OF WARM SUNNY WEATHER THE PAST FEW DAYS ANALYSTS SAID AND
FORECASTERS YESTERDAY WERE CALLING FOR GROWING CONDITIONS IN THESE AREAS TO
REMAIN GOOD ALLOWING THE CROP TO CONTINUE TO DEVELOP

WE'RE NOT PREDICTING A FROST IN THE SOYBEAN AREAS SAID JIM CANDOR
ASSISTANT VICE PRESIDENT AT ACCUWEATHER INC A PRIVATE FORECASTING COMPANY
IN STATE COLLEGE PA THERE MIGHT BE A SCATTERED LIGHT FREEZE IN CANADA OR
NORTHERN MINNESOTA BUT THAT'S NOT WHERE THEY GROW SOYBEANS

STILL ANALYSTS SAID GRAIN FUTURES PRICES AT THE CBOT MIGHT STAGE RALLIES
THIS MONTH IF COOL TEMPERATURES RETURN TO THE FORECASTS I THINK THERE'S
ENOUGH TIME TO SEE ANOTHER WEATHER RALLY OR TWO MR STEARNS SAYS BUT
WITHOUT ACTUAL CONFIRMATION OF AN IMMINENT FROST WE'LL PROBABLY CONTINUE
LOWER OVER THE LONG HAUL

IN THE ABSENCE OF AN ACTUAL FROST MR STEARNS SAID THE DECEMBER SOYBEAN
CONTRACT IS NOT LIKELY TO TOP 690 A BUSHEL

IN OTHER COMMODITY MARKETS

ENERGY CRUDEOIL PRICES FELL SHARPLY IN HEAVY TRADING AMID NEW TALKS
BETWEEN IRAQ AND THE UNITED NATIONS AND AN EASING OF FEARS ABOUT NIGERIAN
OIL PRODUCTION IN NEW YORK AN IRAQI DELEGATION BEGAN A TECHNICAL MEETING
WITH THE UN TO DISCUSS WEAPONS MONITORING AND UN SECRETARYGENERAL
BOUTROS BOUTROSGHALI IS SCHEDULED TO MEET TODAY IN GENEVA WITH IRAQI DEPUTY
PRIME MINISTER TARIQ AZIZ TO DISCUSS THE UN SANCTIONS ON IRAQI OIL SALES
ALSO FEARS THAT POLITICAL TURMOIL IN NIGERIA WOULD DISRUPT LARGE AMOUNTS OF
OIL PRODUCTION ARE PROVING UNFOUNDED TRADERS SAID ON THE NEW YORK
MERCANTILE EXCHANGE CRUDE FOR OCTOBER DELIVERY FELL 44 CENTS A BARREL TO
1829

COFFEE FUTURES PRICES FELL IN SLUGGISH TRADING AS TRADERS AWAITED NEXT
WEEK'S MEETING OF THE COFFEEPRODUCING NATIONS OF CENTRAL AMERICA AND
AFRICA IN AN EFFORT TO BOLSTER WEAK COFFEE PRICES THESE COUNTRIES HAVE
AGREED ON A PLAN TO RETAIN AS MUCH AS 20 OF THEIR COFFEE EXPORTS IF PRICES
REMAIN LOW WHEN THEY MEET IN COLOMBIA NEXT WEEK THEY ARE EXPECTED TO
FORMALIZE THEIR PLANS AND ESTABLISH THE PRICE LEVELS AT WHICH THEY WILL
RETAIN THEIR EXPORTS ONLY FAILURE OF THE NATIONS TO COMPLETE PLANS FOR THE
RETENTION SCHEME WOULD BE LIKELY TO EXERT MUCH PRESSURE ON FUTURES PRICES
ANALYSTS SAID AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE YESTERDAY 
COFFEE FOR DECEMBER DELIVERY WAS DOWN 15 CENTS TO 7790 CENTS A POUND
9309010082 930901 INTERNATIONAL BRIEF HUGO BOSS AG FIRSTHALF PROFIT
ROSE 65 AS SALES DOUBLED IN FAR EAST

HUGO BOSS AG GERMANY'S LEADING CLOTHING AND FASHION GROUP REPORTED A 65
RISE IN FIRSTHALF PROFIT BECAUSE OF HIGHER SALES IN ASIA AND A LOWER TAX
BILL

FIRSTHALF NET INCOME WAS 225 MILLION MARKS 135 MILLION UP FROM 136
MILLION MARKS A YEAR AGO A SPOKESWOMAN AT THE GROUP'S HEADQUARTERS SAID THE
COMPANY WAS ABLE TO TAKE DEDUCTIONS ON ITS GERMAN TAXES FOR THE LOSSES IN
ITS US OPERATIONS LISTED THROUGH CLEVELANDBASED INTERNATIONAL FASHION
APPAREL CORP THE HOLDING COMPANY FOR ITS US DIVISIONS

IN ASIA SALES DOUBLED THE SPOKEWOMAN SAID BUT GROUPWIDE SALES DROPPED
82 TO 4116 MILLION MARKS FROM 4487 MILLION MARKS A YEAR AGO MOST OF THE
LOSSES CAME IN THE US WHERE BOSS CLOSED A CHAIN OF 33 STORES IN THE PAST
YEAR

IN GERMANY TURNOVER DROPPED 6 WHICH WAS WITHIN OUR EXPECTATIONS THE
SPOKESWOMAN SAID ACROSS EUROPE SALES FELL 8 THE COMPANY DIDN'T BREAK OUT
SALES FIGURES 9309010081 930901 WHO'S NEWS ZENITH ELECTRONICS CORP

ZENITH ELECTRONICS CORP GLENVIEW ILL ALBIN F MOSCHNER 40 YEARS
OLD SENIOR VICE PRESIDENT WAS ELECTED PRESIDENT AND CHIEF OPERATING
OFFICER OF THIS ELECTRONICS CONCERN SUCCEEDING JERRY K PEARLMAN WHO
REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER GERALD M MCCARTHY 52
PRESIDENT OF THE SALES DIVISION WAS PROMOTED TO THE NEW POST OF CORPORATE
EXECUTIVE VICE PRESIDENT SALES AND MARKETING 9309010080 930901
TECHNOLOGY & SCIENCE BREAST CANCER DRUG NOW GAINING FAVOR MAY ALSO
REDUCE RISK OF HEART DISEASE  BY MICHAEL WALDHOLZ STAFF REPORTER
OF THE WALL STREET JOURNAL

A DRUG THAT INCREASINGLY IS PROVING EFFECTIVE AGAINST BREAST CANCER ALSO MAY
REDUCE THE RISK OF HEART DISEASE ACCORDING TO A STUDY BY SWEDISH
RESEARCHERS

THE FINDING IS CONSIDERED IMPORTANT BECAUSE THE CANCER DRUG TAMOXIFEN IS
GAINING FAVOR AS A LONGTERM THERAPY THE DRUG SOLD IN THE US AS NOVALDEX
BY ICI PHARMA A UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC OF BRITAIN ALSO
IS BEING TESTED IN SEVERAL LARGE CLINICAL STUDIES TO DETERMINE IF ITS
LONGTERM USE CAN PREVENT BREAST CANCER IN WOMEN CONSIDERED AT RISK FOR
DEVELOPING THE DISEASE LONGTERM USE OF THE DRUG IS SOMEWHAT CONTROVERSIAL
BECAUSE OF CONCERN THAT TAMOXIFEN USE MAY INCREASE THE RISK OF HEART DISEASE
AND LIVER AND ENDOMETRIAL CANCERS

BUT IN A NEW REPORT PUBLISHED THIS WEEK IN THE JOURNAL OF THE NATIONAL
CANCER INSTITUTE RESEARCHERS AT KAROLINSKA HOSPITAL IN STOCKHOLM FOUND THAT
WOMEN WHO TOOK THE DRUG BETWEEN TWO YEARS AND FIVE YEARS TO TREAT BREAST
CANCER HAD A STATISTICALLY LOWER RATE OF HOSPITALIZATIONS FOR HEART DISEASE
PROBLEMS THAN BREAST CANCER PATIENTS NOT GIVEN THE DRUG

AS A RESULT OF THE SWEDISH STUDY IT NOW SEEMS EXTREMELY PLAUSIBLE THAT
TAMOXIFEN USE WILL PROBABLY PRODUCE AT LEAST SOME NET REDUCTION IN CORONARY
HEART DISEASE ACCORDING TO AN EDITORIAL IN THE NCI JOURNAL BY RICHARD
GRAY A CANCER RESEARCHER AT RADCLIFFE INFIRMARY IN OXFORD ENGLAND

IN THE STUDY DOCTORS REVIEWED MEDICAL RECORDS OF SEVERAL THOUSAND WOMEN
ENROLLED IN STUDIES BETWEEN 1976 AND 1988 THAT COMPARED USE OF TAMOXIFEN TO
A PLACEBO DRUG OF 1188 PATIENTS WHO RECEIVED THE DRUG 51 WERE
HOSPITALIZED FOR HEART DISEASE PROBLEMS AS COMPARED TO 72 WOMEN IN A GROUP
OF 1177 WOMEN GIVEN PLACEBO OR INACTIVE DRUG

ADDITIONALLY ONLY FIVE OF 225 WOMEN WHO TOOK THE DRUG FOR FIVE YEARS TO
TREAT THE CANCER DEVELOPED HEART DISEASE PROBLEMS AS COMPARED TO 14 OF 222
WOMEN WHO DIDN'T RECEIVE THE DRUG DURING A FIVE YEAR PERIOD

IN THE PAST FEW YEARS RESEARCHERS HAVE REPORTED THAT TAMOXIFEN CAN REDUCE
BREAST CANCER RECURRENCE BY ABOUT 25 WHEN GIVEN TO WOMEN IN ADDITION TO
SURGERY OR SURGERY AND RADIATION SOME STUDIES ALSO FOUND THE DRUG WAS MORE
EFFECTIVE WHEN GIVEN FOR TWO YEARS OR MORE AFTER SURGERY THESE STUDIES HAVE
PROMPTED SEVERAL LARGESCALE LANDMARK TRIALS TO TEST WHETHER THE DRUG ALSO
CAN PREVENT BREAST CANCER IN HEALTHY WOMEN WHO HAVE A HIGH RISK OF
DEVELOPING BREAST CANCER GENERALLY BECAUSE OF FAMILY HISTORY

PREVIOUS RESEARCH HAS SUGGESTED THAT TAMOXIFEN MIGHT REDUCE RISK OF HEART
ATTACKS AND OTHER CORONARY HEART PROBLEMS BECAUSE THE DRUG REDUCES EXCESS
BLOOD CHOLESTEROL BUT THAT EFFECT MIGHT BE COUNTERED BY THE FACT THAT
TAMOXIFEN ALSO BLOCKS THE ACTIVITY OF THE HORMONE ESTROGEN IN SOME ORGANS
ESTROGEN IS KNOWN TO REDUCE HEART DISEASE

THE SWEDISH RESEARCHERS SAID THEY BELIEVED THEIR NEW STUDY SHOULD HELP ALLAY
CONCERNS ABOUT THE DRUG CAUSING HEART DISEASE SOME DOCTORS ARE STILL
CONCERNED ABOUT TAMOXIFEN THERAPY FOR HEALTHY WOMEN BECAUSE SEVERAL REPORTS
HAVE SUGGESTED THAT LONGTERM USE OF TAMOXIFEN MAY INCREASE SOME WOMEN'S
RISK OF OTHER CANCERS

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 9309010079
930901 TECHNOLOGY & SCIENCE FDA SAYS MEDICAL DEVICE FIRMS MUST TRACK
PATIENTS

WASHINGTON THE FOOD AND DRUG ADMINISTRATION IS REQUIRING MANUFACTURERS OF
CERTAIN CRITICAL MEDICAL IMPLANTS AND DEVICES TO KEEP TRACK OF PATIENTS WHO
RECEIVE THEM IN CASE MALFUNCTIONS ARISE

THE ACTION WHICH APPLIES TO PRODUCERS OF 17 IMPLANTS AND FIVE DEVICES WAS
REQUIRED BY THE 1990 SAFE MEDICAL DEVICES ACT IT AFFECTS IMPLANTS SUCH AS
HEART VALVES AND PACEMAKERS AS WELL AS LIFESUPPORTING DEVICES SUCH AS
BREATHING MONITORS AND VENTILATORS

THE AGENCY ISN'T REQUIRING MANUFACTURERS TO USE ANY SPECIFIC TYPE OF
TRACKING SYSTEM BUT THE SYSTEMS MUST ENABLE THE COMPANIES TO PROVIDE THE
FDA WITH THE NAMES OF PATIENTS AND THE LOCATIONS OF THEIR PRODUCTS WITHIN 10
WORKING DAYS

WE NEED A SYSTEM THAT WILL ALLOW US TO COMMUNICATE QUICKLY AND EFFECTIVELY
CRITICAL INFORMATION ABOUT THE SAFETY AND EFFICACY OF IMPLANTS AND DEVICES
SAID FDA COMMISSIONER DAVID KESSLER TRACKING WILL HELP SAVE LIVES BY
MAKING IT POSSIBLE TO GET IN TOUCH QUICKLY WITH PEOPLE WHO HAVE FAULTY
DEVICES

THE REQUIREMENT WHICH TOOK EFFECT LAST SUNDAY MAY BE BROADENED TO COVER
OTHER DEVICES IN THE FUTURE 9309010078 930901 WHO'S NEWS MEDICAL
DEVICES INC

MEDICAL DEVICES INC ST PAUL MINN W GLEN WINCHELL 46 YEARS OLD AND
A CONSULTANT TO THIS MAKER OF PAINMANAGEMENT PRODUCTS WAS NAMED VICE
PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER SUCCEEDING JEFFREY P
SHIELDS WHO RESIGNED 9309010077 930901 BUSINESS BRIEF SARA LEE CORP
 UNION PROPOSES SHAREHOLDERS VOTE ON 'GOLDEN PARACHUTES'

UNDER A PROPOSAL BROUGHT BY A WEST COAST UNION LOCAL SARA LEE CORP WOULD
HAVE TO OBTAIN SHAREHOLDER APPROVAL OF EXECUTIVESEVERANCE PACKAGES

THE PROPOSAL WHICH THE CHICAGOBASED COMPANY OPPOSES WILL BE INCLUDED IN
SARA LEE'S FORTHCOMING PROXY STATEMENT AND VOTED ON AT ITS OCT 28 ANNUAL
MEETING

ITS INCLUSION CAME AFTER LOCAL 120 OF THE UNITED FOOD & COMMERCIAL WORKERS
UNION BASED IN OAKLAND CALIF ASKED THE SECURITIES AND EXCHANGE
COMMISSION TO LOOK INTO WHY SARA LEE NEVER SPELLED OUT ITS GOLDEN
PARACHUTE POLICY A SARA LEE SPOKESWOMAN SAID THE POLICY WHICH COVERS 33
EXECUTIVES BUT HASN'T BEEN IMPLEMENTED WAS INADVERTENTLY OMITTED FROM THE
1986 PROXY STATEMENT

THE LOCAL REPRESENTS ABOUT 200 EMPLOYEES AT SARA LEE'S GALLO SALAMI
DIVISION WHERE THE COMPANY REPLACED STRIKERS DURING A CONTRACT DISPUTE IN
1990 9309010076 930901 BUSINESS BRIEF HERO GROUP LTD APPAREL FIRM
REPORTS LOSS FOR FISCAL FOURTH QUARTER

HERO GROUP LTD REPORTED A PRETAX LOSS FOR THE FISCAL FOURTH QUARTER AND
SAID IT IS FACING CREDIT AGREEMENT PROBLEMS

FOR THE QUARTER ENDED MAY 31 THE WOMEN'S APPAREL MAKER SAID IT HAD A PRETAX
LOSS OF 41 MILLION COMPARED WITH A YEAREARLIER LOSS OF 562000 THE
SECAUCUS NJ COMPANY POSTED A PRETAX LOSS OF 43 MILLION FOR THE FISCAL
YEAR COMPARED WITH A YEAREARLIER PROFIT OF 103 MILLION

FOURTHQUARTER SALES ROSE 17 TO 438 MILLION FROM 375 MILLION FOR THE
YEAR SALES CLIMBED 22 TO 1705 MILLION FROM 1398 MILLION BUT COST OF
SALES WENT UP 36 IN THE QUARTER AND 43 FOR THE YEAR

HERO GROUP SAID IT HASN'T COMPLETED ITS YEAREND FINANCIAL STATEMENTS
PARTLY DUE TO AN INABILITY TO REACH AGREEMENT WITH BANK LENDERS ON A
PROPOSED NEW CREDIT AGREEMENT THE COMPANY ISN'T IN COMPLIANCE WITH TERMS OF
THE PRESENT AGREEMENT WHICH EXPIRES SEPT 9309010075 930901 BUSINESS
BRIEF TRAMMELL CROW REAL ESTATE TRUST FAILS TO GARNER VOTES NEEDED
TO DROP LIQUIDATION

TRAMMELL CROW REAL ESTATE INVESTORS WON SHAREHOLDER APPROVAL TO CHANGE ITS
NAME AND SEVER REMAINING TIES WITH ITS NAMESAKE DEVELOPER BUT FAILED TO
GARNER ENOUGH VOTES TO ELIMINATE THE REAL ESTATE INVESTMENT TRUST'S PLANNED
1997 LIQUIDATION

THE COMPANY RENAMED AMERICAN INDUSTRIAL PROPERTIES REIT WILL RECONVENE ITS
ANNUAL MEETING OCT 1 BY THEN IT HOPES TO GATHER ENOUGH PROXIES FROM
SHAREHOLDERS WHO HAVEN'T YET VOTED TO REACH THE 80 APPROVAL REQUIRED TO
ELIMINATE THE LIQUIDATION DATE

INDEPENDENT TRUST MANAGER WILLIAM BRICKER SAID HE WAS ENCOURAGED THAT THE
80 MARK WOULD BE REACHED BUT COMPANY OFFICIALS DECLINED TO RELEASE CURRENT
VOTE TOTALS

DIRECTORS OF THE REIT HAVE ARGUED THAT REMOVING THE LIMITEDTERM STRUCTURE
WOULD GIVE THE COMPANY GREATER ACCESS TO CAPITAL AND PERHAPS HELP IT SHARE
IN THE CURRENT STOCKMARKET BOOM IN REALESTATE TRUSTS

TRAMMELL CROW REAL ESTATE INVESTORS WAS FORMED IN 1985 AS THE FIRST PUBLIC
OFFERING FROM TRAMMELL CROW CO ONE OF THE NATION'S LARGEST PRIVATE
DEVELOPERS 9309010074 930901 SPORTS PRO VOLLEYBALL SPONSORS ENJOY 
THE BEACH LIFE  BY ERLE NORTON STAFF REPORTER OF THE WALL STREET
JOURNAL

WHEN KARCH KIRALY STARTED PLAYING COMPETITIVE BEACH VOLLEYBALL IN THE 1970S
IT WAS JUST FOR THE LOVE OF THE GAME

WE'D JUST ALL SAVE UP OUR MONEY PILE INTO A FRIEND'S VW DRIVE TO A
TOURNAMENT AND SLEEP ON SOMEBODY'S FLOOR RECALLS MR KIRALY THE TOP
PRIZE IF YOU WERE REALLY LUCKY MAYBE A NICE BEACH CHAIR

TIMES HAVE CHANGED PLAYERS TODAY CHASE PURSES OF TENS OF THOUSANDS OF
DOLLARS MR KIRALY TOPPED THE 1 MILLION MARK IN CAREER EARNINGS THIS YEAR
AND HIS INCOME FROM INDIVIDUAL ENDORSEMENT CONTRACTS AMOUNTS TO HUNDREDS OF
THOUSANDS OF DOLLARS A YEAR

WHERE IS ALL THAT MONEY COMING FROM SPONSORS COMPANIES RANGING FROM MILLER
BREWING CO TO BAUSCH & LOMB TO PROCTER & GAMBLE CO ARE CLIMBING ABOARD THE
BEACH VOLLEYBALL BANDWAGON IN A BID TO PORTRAY THEIR PRODUCTS AS HIP AND
ATTRACT THE SPORT'S YOUNG FANS

WE SEE THAT PRO BEACH VOLLEYBALL IS A RAPIDLY GROWING SPORT THAT REFLECTS
AN ENERGETIC YOUTH LIFESTYLE THAT FORD WANTS TO BE INVOLVED WITH SAYS
HARLAN LASSEN A SALES PROMOTION MANAGER AT FORD MOTOR CO

THE SPORT ALSO IS ENJOYING A SURGE IN POPULARITY NBC IS RACKING UP
HIGHERTHANEXPECTED RATINGS ON BROADCASTS THIS SUMMER TOURNAMENTS IN
CITIES FAR FROM BEACHES SUCH AS AUSTIN TEXAS CLEVELAND AND DENVER ARE
DRAWING MORE THAN 10000 FANS NIKE INC'S NEWEST MARKETING STAR IS
GABRIELLE REECE A PRO BEACH VOLLEYBALL PLAYER WHO ALSO IS A FASHION MODEL
AND BEACH VOLLEYBALL MAY BE NAMED AN OFFICIAL MEDAL EVENT FOR THE 1996
SUMMER GAMES IN ATLANTA

THE GAME IS A QUICK SPORT THAT BLENDS FINESSE AND FORCE ITS PLAYERS DISPLAY
WELLTONED BODIES IN SCANTILY CLAD BEACH WEAR AND IT EVOKES IMAGES OF A
LIFESTYLE THAT COMBINES ATHLETICS HEALTH YOUTH AND A SOUTHERN CALIFORNIA
CAREFREE BEACH ATTITUDE MOREOVER VOLLEYBALL IS RELATIVELY EASY TO PICK UP
FOR RECREATIONAL PLAYERS WHO THEN WATCH THE PROS

TOURNAMENTS NOW RESEMBLE A SEA OF BRAND NAMES MILLER LITE OLD SPICE
EVIAN KILLER LOOP JOSE CUERVO SPONSORS PUT THE MONIKER OF THEIR PRODUCTS
ON NETS SIGNS TENTS AND EVEN THE PLAYERS' CLOTHING

PRO BEACH VOLLEYBALL OFFERS COMPANIES A SHOT AT YOUNG CONSUMERS AGES 18 TO
34 40 OF WHOM HAVE COLLEGE DEGREES SAYS MR LASSEN AT FORD PERHAPS
MORE IMPORTANT IT'S A CHANCE TO TIE THEIR PRODUCTS INTO A DESIRABLE
LIFESTYLE

IF YOU LOOK AT ONE OF OUR COMMERCIALS IT ALMOST LOOKS LIKE PRO BEACH
VOLLEYBALL SAYS KENT FONDA EVENTS MARKETING MANAGER FOR COORS THE
PRIMARY SPONSOR FOR THE WOMEN'S PROFESSIONAL VOLLEYBALL ASSOCIATION OR
WPVA

YOU'VE GOT SPORTS YOU'VE GOT SUN YOU'VE GOT SEX SAYS NORMAN SALIK VICE
PRESIDENT OF ADVERTISING AND EVENTS MARKETING AT BAUSCH & LOMB WHOSE KILLER
LOOP BRAND OF SUNGLASSES IS A MAJOR SPONSOR

BEACH VOLLEYBALL ALSO IS ATTRACTING SPONSORS BEYOND THE TYPICAL BEACH OR
ATHLETICORIENTED COMPANIES OLD SPICE FOR INSTANCE HAS LATCHED ON TO BEACH
VOLLEYBALL IN AN EFFORT TO ATTRACT YOUNGER CONSUMERS SAYS A SPOKESWOMAN AT
PROCTER & GAMBLE WHICH MAKES THE LINE OF MEN'S PERSONALCARE PRODUCTS OLD
SPICE IS THE TITLE SPONSOR FOR TWO ASSOCIATION OF VOLLEYBALL PROFESSIONALS'
TOURNAMENTS THIS YEAR AND MAY ADD MORE NEXT YEAR SAYS THE GROUP TITLE
SPONSORSHIPS ON THE AVP TOUR COST 50000 TO 100000

MILLER A UNIT OF PHILIP MORRIS COS IS SPENDING 23 MILLION THIS YEAR IN
ITS ROLE AS THE MAIN SPONSOR FOR THE AVP THE MEN'S TOUR WHICH ADDED WOMEN
FOR THE FIRST TIME THIS YEAR COORS BREWING CO A UNIT OF ADOLPH COORS CO
IS PUTTING OUT ABOUT 1 MILLION TO DO THE SAME FOR THE WPVA

SHUT OUT OF THE TWO MAIN TOURS ANHEUSERBUSCH COS WANTED INTO PRO BEACH
VOLLEYBALL BADLY ENOUGH TO START ITS OWN TOUR IN 1991 WE WERE LOOKING FOR
A WAY TO BECOME A LITTLE MORE AGGRESSIVE IN BEACH VOLLEYBALL SAYS MARK
LAMPING GROUP DIRECTOR OF SPORTS MARKETING FOR ANHEUSERBUSCH THE RESULT
WAS A FOURMANPERTEAM TOUR UNLIKE THE TWOPERSONPERTEAM CONCEPT USED BY
THE AVP AND WPVA THE BEER MAKER ADDED A WOMEN'S TOUR THIS YEAR

PLAYERS TOO HAVE THE CHANCE TO SIGN CONTRACTS WITH INDIVIDUAL SPONSORS
MR KIRALY ONCE MANAGED TO PULL IN LESS THAN 7500 PER ANNUAL CONTRACT
THAT FIGURE TODAY IS MORE THAN 100000 PER SPONSOR IN SOME CASES

ON EVERY PART OF MY BODY I HAVE SOMETHING REPRESENTING MY SPONSORS SAYS
KAROLYN KIRBY ONE OF THE TOP PLAYERS ON THE WPVA TOUR I MAKE MORE MONEY
IN SPONSORSHIPS THAN I DO IN PRIZE MONEY

BUT UNLIKE THE SITUATION IN OTHER SPORTS TOP SPONSORS PLAY KEY ROLES IN
SHAPING THE TOURS THEY SPONSOR BOTH COORS AND MILLER MAKE DECISIONS
INVOLVING SUCH ASPECTS AS TOUR DATES AND SITES FOR THE WPVA AND AVP
RESPECTIVELY MILLER FIRST DIRECTED THE AVP OUTSIDE CALIFORNIA TODAY THE
THREE TOURS TRUCK IN SAND AND LAST WINTER BUILT COURTS ON PARKING LOTS IN
PLACES SUCH AS DAYTON OHIO AND EVEN MADISON SQUARE GARDEN IN NEW YORK IT
DOESN'T TAKE A BEACH FOR BEACH VOLLEYBALL SAYS SINJIN SMITH WHO HAS THE
MOST WINS ON THE AVP TOUR ALL IT TAKES IS SAND

BUT IT'S TELEVISION THAT HAS EXPOSED THE SPORT TO A MASS AUDIENCE

NBC A GENERAL ELECTRIC CO UNIT WAS SEARCHING FOR A REPLACEMENT FOR MAJOR
LEAGUE BASEBALL IN 1989 AFTER IT LOST THE CONTRACT AT THE URGING OF JON
MILLER NBC'S VICE PRESIDENT OF PROGRAM PLANNING THE NETWORK FIRST SHOWED
BEACH VOLLEYBALL IN 1990 AS AN EXPERIMENT THE TELECAST SCORED WELL ENOUGH
FOR NBC TO SCHEDULE THREE EVENTS IN 1991 AND SIGN A PARTNERSHIP AGREEMENT
WITH THE AVP THAT INCLUDES REVENUE SHARING

THE AVP HAS CHANGED THE GAME FOR TV FOR EXAMPLE IT ADOPTED A GAME CLOCK TO
KEEP GAMES UNDER ONE HOUR AT NBC'S REQUEST WHICH CHAFED SOME PLAYERS

WE WANTED TO SEE OUR SPORT BECOME A BIGTIME PROFESSIONAL SPORT SAYS JON
STEVENSON AVP PRESIDENT YOU HAVE TO WORK WITH TELEVISION IT IS ONE OF
THE VERY KEYS TO OUR SUCCESS

NBC IS TELECASTING 10 EVENTS THIS YEAR AND COULD EXPAND THAT NEXT SEASON
SAYS MR MILLER THE WPVA IS BROADCAST ON PRIME NETWORK AND THE
ANHEUSERBUSCH EVENTS ARE ON ESPN

BEACH VOLLEYBALL HAS HIT SOME POTHOLES ON ITS ROAD TO SUCCESS THE WPVA SANK
INTO THE RED LAST YEAR AND PILED UP DEBT AFTER ITS ORGANIZERS SHOT FOR THE
BIG TIME TOO QUICKLY AND PAID TOO MUCH IN PRIZE MONEY THIS YEAR THE
ORGANIZATION SCALED BACK ITS TOUR TO 13 TOURNAMENTS FROM 15 AND LOWERED
PRIZE MONEY TO 20000 PER TOURNAMENT FROM MORE THAN 30000 LAST YEAR IT
ALSO LOST SEVERAL PLAYERS WHO WERE SIGNED BY THE AVP IN ITS ATTEMPT TO
CREATE A WOMEN'S TOUR OF ITS OWN THE WPVA SAYS IT HAS RUN IN BLACK THIS
YEAR AND PAID DOWN DEBT

BUT BEACH VOLLEYBALL IS FORGING AHEAD THE AVP IS TAKING A TOUR OVERSEAS IN
DECEMBER TO BARCELONA AND MADRID IN SPAIN AND TO MILAN AND IT PLANS TO
EXPAND ITS US INDOOR TOUR TO THREE OR FOUR STOPS THIS WINTER 9309010073
930901 ABREAST OF THE MARKET STOCKS RISE ON PROGRAM BUYING AFTER DAY OF
TRACING BOND ACTION  BY CAITLIN MOLLISON SPECIAL TO THE WALL
STREET JOURNAL

NEW YORK PROGRAM BUYING SECONDS BEFORE THE CLOSE PUT STOCK PRICES ON THE
HIGH ROAD AFTER EQUITIES LINGERED AT MIXED LEVELS FOR MOST OF THE DAY

THE DOW JONES INDUSTRIAL AVERAGE SHOT UP 726 POINTS TO 365125 JUST SHORT
OF ITS RECORD HIGH OF 365209 LAST WEDNESDAY BROADER INDEXES SUCH AS THE
STANDARD & POOR'S 500STOCK INDEX AND THE NEW YORK STOCK EXCHANGE COMPOSITE
INDEX CRACKED THEIR HIGHS REACHED MONDAY THE S&P 500 ROSE 166 TO 46356
THE NYSE COMPOSITE INDEX INCREASED 084 POINTS TO 25688 THE AMERICAN STOCK
EXCHANGE MARKET VALUE INDEX ALSO BROKE MONDAY'S RECORD RISING 233 TO
45860

GAINING STOCKS ON THE BIG BOARD SWAMPED DECLINERS 1192 TO 788 BUT ACTION
WAS TRENDLESS AHEAD OF THE LABOR DAY WEEKEND WITH NYSE VOLUME OF
240970000 SHARES UP FROM 191340000 MONDAY

STOCKS ZIGZAGGED IN A TIGHT RANGE FOLLOWING FICKLE BOND PRICES BOND PRICES
CAME ON STRONG YESTERDAY MORNING BUT WAVERED AFTER THE GOVERNMENT REVISED
ITS ESTIMATE OF SECONDQUARTER GROWTH SLIGHTLY UPWARD THE LONG BOND GAINED
LESS THAN 1/4 POINT DEPRESSING ITS YIELD TO 610

ANOTHER ECONOMIC REPORT SHOWED THAT CONSUMER CONFIDENCE IN AUGUST FELL
SLIGHTLY TO 59 FROM JULY'S REVISED READING OF 592

THE STOCK MARKET BEHAVED QUITE WELL SAID TODD CLARK HEAD OF TRADING AT
MABON SECURITIES CORP IT LOOKED LIKE THE BOND MARKET WOULD ROLL OVER AND
CORRECT BUT IT CAME BACK STRONG AND HELPED STOCKS

LIMITED DROPPED 1/4 TO 23 3/8 ON VOLUME OF 31 MILLION SHARES ABOUT THREE
TIMES THE AVERAGE DAILY VOLUME THE WALL STREET JOURNAL REPORTED YESTERDAY
THAT THE RETAILER HAS ANNOUNCED A RESTRUCTURING THAT INCLUDES SHRINKING OR
CLOSING ABOUT 360 LIMITED AND LERNER STORES BY THE END OF 1995 AND BUYING
BACK AS MUCH AS 500 MILLION OR 6 OF ITS SHARES

NEWS THAT AUGUST TOTAL SALES ROSE 45 DROVE BOMBAY UP 3 TO 41 THE RETAILER
SAID SAMESTORE SALES ROSE 25 FOR THE MONTH

SEVERAL COMPANIES MOVED HIGHER FOLLOWING A REPORT BY DAN DORFMAN ON CNBC
YESTERDAY AFTERNOON THE REPORTER SAID AT LEAST FIVE HEALTHCARE COMPANIES
SHOULD BENEFIT FROM THE RECENTLY DISCLOSED PROBLEMS AT NATIONAL MEDICAL
ENTERPRISES

THE FIRMS CITED AND THEIR GAINS WERE COMMUNITY PSYCHIATRIC CENTERS 5/8 TO
11 7/8 AMERICAN HEALTHCARE MANAGEMENT 1/8 TO 5 1/2 CHARTER MEDICAL 3/4
TO 22 1/8 AMERICAN MEDICAL HOLDINGS 1/8 TO 14 AND RAMSAY HEALTH CARE AN
OTC STOCK WHICH ROSE 3/8 TO 8 1/2

NATIONAL MEDICAL MOVED UP 7/8 TO 8 3/8

BUT SMITHKLINE BEECHAM SANK 1 1/2 TO 32 3/4 FOLLOWING A WERTHEIM SCHRODER
DOWNGRADE TO SELL FROM BUY JONATHAN S GELLES AN ANALYST AT THE
BROKERAGE FIRM CITED THE POSSIBILITY OF WEAK SALES IN THE COMPANY'S DRUG
BUSINESS NEXT YEAR

TRANSPORTATION STOCKS WERE STRONG AND THE DOW JONES TRANSPORTATION AVERAGE
CLIMBED 1432 TO 166553 AMONG ITS COMPONENTS UAL CORP ROSE 3 1/4 TO 148
1/2 AND SOUTHWEST AIRLINES IMPROVED 3/4 TO 35 1/4

IBM ROSE 1 1/8 TO 45 3/4 THE COMPANY SAID SALES OF ITS PERSONAL COMPUTERS
HAVE SURGED AHEAD OF THE INDUSTRY GROWTH RATE GROWING 40 TO 45 IN THE
PAST THREE QUARTERS THIS COMPARES TO AN INDUSTRY RATE OF 14 TO 16 THE
COMPANY SAID

TELEPHONE & DATA SYSTEMS JUMPED 7/8 TO 50 1/8 LATE MONDAY THE COMPANY SAID
IT HAS ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE A MAJORITY OF
MILLINGTON TELEPHONE'S COMMON STOCK TERMS WEREN'T DISCLOSED

QUANEX A METAL PRODUCTS MAKER WAS PUSHED UP 1 1/2 TO 19 1/4 FOLLOWING A
RAUSCHER PIERCE UPGRADE TO BUY FROM HOLD

MARTECH USA A MARINE POLLUTION CONTROL SERVICES PROVIDER ROSE 1 1/2 TO 8
7/8 THE COMPANY SAID IT HAS RETAINED FIRST BOSTON CORP TO EXPLORE
STRATEGIC ALTERNATIVES FOR MAXIMIZING SHAREHOLDER VALUE INCLUDING POSSIBLE
SALE OF THE COMPANY

SHOWBOAT WHICH OWNS AND OPERATES HOTELS CASINOS AND BOWLING CENTERS FELL
3 TO 17 ON A DISAPPOINTING FISCAL THIRDQUARTER OUTLOOK THE COMPANY SAID IT
EXPECTS TO EARN BETWEEN 50 CENTS AND 60 CENTS A SHARE IN THE QUARTER A YEAR
EARLIER SHOWBOAT EARNED 73 CENTS A SHARE THE TWO ANALYSTS SURVEYED BY
ZACKS INVESTMENT RESEARCH INC EXPECTED THE COMPANY TO EARN 76 CENTS OR 78
CENTS 9309010072 930901 FINANCING BUSINESS TEXAS UTILITIES CO

TEXAS UTILITIES CO DALLAS SAID ITS TEXAS UTILITIES ELECTRIC CO UNIT
FILED A SHELF REGISTRATION STATEMENT FOR 150 MILLION OF ITS PREFERRED
STOCK THE COMPANY ALREADY HAS 75 MILLION OF ITS PREFERRED STOCK ON THE
SHELF UNDER PRIOR REGISTRATION TEXAS UTILITIES ELECTRIC ALSO FILED A NEW
SHELF REGISTRATION STATEMENT FOR 700 MILLION OF ITS FIRST MORTGAGE AND
COLLATERAL TRUST BONDS THE UTILITY HAS 300 MILLION OF THOSE BONDS ON THE
SHELF UNDER PRIOR REGISTRATION TEXAS UTILITIES ELECTRIC SAID NET PROCEEDS
FROM THESE SALES WILL BE USED TO ACQUIRE OR REDEEM CERTAIN OF ITS SECURITIES
AND MAY ALSO BE USED FOR ITS CONSTRUCTION PROGRAM AND OTHER CORPORATE
PURPOSES 9309010071 930901 NEW SECURITIES ISSUES

THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND
NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY
DOW JONES CAPITAL MARKETS REPORT

BANK OF NOVA SCOTIA 250 MILLION OF SUBORDINATED NOTES DUE SEPT 15
2008 WON IN COMPETITIVE BIDDING BY SALOMON BROTHERS INC THE NOTES WERE
REOFFERED AS 625S AT 99451 TO YIELD 6307 ACCORDING TO MCM
CORPORATEWATCH THE NONCALLABLE NOTES PRICED AT A SPREAD OF 83 BASIS POINTS
ABOVE TREASURYS ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND
SINGLEAPLUS BY STANDARD & POOR'S CORP

BANK OF NOVA SCOTIA 250 MILLION CANADIAN DOLLARS US1892 MILLION OF
83 DEBENTURES DUE SEPT 27 2013 PRICED AT 995 FOR A YIELD OF 8352
THE ISSUE UNDERWRITTEN BY A GROUP HEADED BY SCOTIAMCLEOD INC WAS PRICED
AT 81 BASIS POINTS ABOVE THE YIELD ON COMPARABLE CANADIAN GOVERNMENT BONDS
THE DEBENTURES ARE REDEEMABLE BY THE ISSUER ON OR AFTER THE FIFTH
ANNIVERSARY OF THE ISSUE

FOREST OIL CORP 100 MILLION OF SENIOR SUBORDINATED NOTES DUE SEPT 1
2003 PRICED AS 1125S AT 99259 TO YIELD 11375 THE NOTES ARE NONCALLABLE
FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE
ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC

WISCONSIN ELECTRIC POWER CO 60 MILLION OF FIRST MORTGAGE BONDS 5125
SERIES DUE SEPT 15 1998 THROUGH UNDERWRITERS SALOMON BROTHERS INC AND
KIDDER PEABODY & CO THE OFFERING IS SCHEDULED TO CLOSE SEPT 15 THE BONDS
ARE BEING OFFERED TO THE PUBLIC AT 998 OF THE PRINCIPAL AMOUNT TO YIELD
5171 AND ARE PRELIMINARILY RATED DOUBLEAPLUS BY S&P DOUBLEA2 BY
MOODY'S AND DOUBLEAPLUS BY DUFF & PHELPS PROCEEDS WILL BE UESD PRIMARILY
TO REDEEM 626500 SHARES OF THE COMPANY'S 675 SERIES 100 PAR VALUE SERIAL
PREFERRED STOCK WHICH HAVE BEEN CALLED FOR REDEMPTION SEPT 28 WISCONSIN
ELECTRIC IS A UNIT OF WISCONSIN ENERGY CORP

FLORIDA POWER & LIGHT CO 650000 PREFERRED SHARES SERIES U PRICED TO
YIELD 675 AND OFFERED AT 100 APIECE BY SALOMON BROTHERS INC FLORIDA
POWER & LIGHT IS A UNIT OF FPL GROUP INC

FLORIDA STATE BOARD OF EDUCATION 225 MILLION PUBLICEDUCATION
CAPITALOUTLAY GENERALOBLIGATION BONDS APPARENTLY WON BY A MERRILL LYNCH &
CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5255 YIELDS FOR
REOFFERED BONDS RANGE FROM 325 IN 1995 TO 539 IN 2023 BOTH MOODY'S AND
S&P HAVE RATED THE BONDS DOUBLEA

OMAHA NEB PUBLIC POWER DISTRICT 2026 MILLION 1993 SERIES D ELECTRIC
SYSTEM REVENUE BONDS PRICED BY A LEHMAN BROTHERS INC GROUP YIELDS RANGE
FROM 27 IN 1994 TO 54 IN 2016 THE BONDS HAVE BEEN RATED DOUBLEA BY
BOTH MOODY'S AND S&P

ADVANTA MORTGAGE CORP 172 MILLION OF HOMEEQUITYLOAN CERTIFICATES
PRICED IN FIVE PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ALL
CERTIFICATES IN THE ISSUE ADVANTA HOME EQUITY LOAN TRUST 19933 WERE RATED
TRIPLEA BY BOTH MOODY'S AND S&P BASED ON A 100 INSURANCE WRAP PROVIDED BY
MUNICIPAL BOND INVESTORS ASSURANCE CORP THE 68 MILLION CLASS A1
CERTIFICATES WERE PRICED AS 49S AT 99 30/32 TO YIELD 4827 AN
80BASISPOINT SPREAD ABOVE THE 25YEAR POINT ON THE TREASURY YIELD CURVE
THE CERTIFICATES HAVE AN AVERAGE LIFE OF 26 YEARS THE 8 MILLION CLASS A2
CERTIFICATES WERE PRICED AS 65S AT 99 27/32 TO YIELD 655 A
110BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES
HAVE AN AVERAGE LIFE OF 99 YEARS THE 64 MILLION CLASS A3 CERTIFICATES
WERE PRICED AS 475S AT 99 27/32 TO YIELD 471 AN 85BASISPOINT SPREAD
ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF
21 YEARS THE 7 MILLION CLASS A4 CERTIFICATES WERE PRICED AS 63S AT 99
27/32 TO YIELD 6338 A 115BASISPOINT SPREAD ABOVE THE EIGHTYEAR POINT
ON THE TREASURY YIELD CURVE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 81
YEARS THE 25 MILLION CLASS A5 CERTIFICATES WERE PRICED AS 555S AT 99
27/32 TO YIELD 5537 A 120BASISPOINT SPREAD ABOVE THE 35YEAR POINT ON
THE TREASURY YIELD CURVE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 36
YEARS MONTHLY PAYMENTS BEGIN OCT 25 ADVANTA MORTGAGE IS A UNIT OF ADVANTA
CORP

USAA FEDERAL SAVINGS BANK 2089 MILLION OF AUTO LOAN ASSETBACKED
CERTIFICATES PRICED AS 39S AT 99889 TO YIELD 402 A 65BASISPOINT
SPREAD ABOVE THE TREASURY'S ONEYEAR BILL THE ISSUE USAA AUTO LOAN GRANTOR
TRUST 19931 IS BACKED BY AUTO LOANS ORIGINATED BY USAA FEDERAL SAVINGS OF
SAN ANTONIO A FEDERAL CREDIT UNION THAT PRINCIPALLY SERVES ACTIVE AND
RETIRED MILITARY PERSONNEL MERRILL LYNCH & CO WAS THE ISSUE'S SOLE
MANAGER THE ISSUE WITH A 135YEAR AVERAGE LIFE WAS RATED TRIPLEA BY
BOTH MOODY'S AND S&P BASED ON A 5 CASH COLLATERAL ACCOUNT

BREMER LANDESBANK GERMANY 100 MILLION SWISS FRANCS OF 275 PRIVATELY
PLACED NOTES WITH EQUITYPURCHASE WARRANTS ATTACHED DUE OCT 15 1998 AT
100 VIA UNION BANK OF SWITZERLAND WARRANTS EXERCISEABLE TO PURCHASE SHARES
IN CS HOLDING FROM OCT 15 1993 TO AUG 31 1995 FEES STANDARD

BRITISH COLUMBIA CANADIAN PROVINCE 400 MILLION CANADIAN DOLLARS OF
725 EUROBONDS DUE SEPT 21 2005 AT ISSUE PRICE 100575 VIA SCOTIA MCLEOD
INC REOFFERED AT 988 TO YIELD 7404 A MARGIN OF 50 BASIS POINTS ABOVE
CANADIAN GOVERNMENT BOND OF DECEMBER 2003 FEES 2125

DEPFA FINANCE NV AMSTERDAM GERMAN PARENT 15 BILLION MARKS OF 6375
EUROBONDS DUE SEPT 30 2003 AT ISSUE PRICE 101875 VIA DRESDNER BANK AG
AND MORGAN STANLEY GMBH REOFFERED AT 997 TO YIELD 6417 A SPREAD OF 24
BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR DEUTSCHE PFANDBRIEF UND
HYPOTHEKEN BANK AG FEES 25 POINTS

FRANKFURTER HYPOTHEKENBANK AG GERMANY 100 MILLION MARKS OF
REVERSECOUPON FLOATINGRATE EURONOTES DUE OCT 6 2003 AT ISSUE PRICE PAR
VIA TRINKAUS & BURKHARDT KGAA BONDS PAY 75 ANNUALLY FOR FIRST YEAR
THEREAFTER INTEREST PAYABLE SEMIANNUALLY AT 1775 MINUS TWO TIMES
SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS ISSUE ASSIGNED NO 634
UNDER GEDECKE OEFFENTLICHE PFANDBRIEFE A SPECIAL STATUS UNDER GERMAN LAW TO
PROVIDE SECURITY FOR BONDS FEES 03 POINT

GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION OF 425
EUROBONDS DUE SEPT 16 1996 OFF MEDIUMTERM NOTE PROGRAM AT ISSUE PRICE OF
1008775 VIA UBS LTD REOFFERED AT 9969 TO YIELD 436 A SPREAD OF 10
BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375

NORDDEUTSCHE LANDESBANK GIROZENTRALE GERMANY 115 MILLION SWISS FRANCS
OF 225 PRIVATELY PLACED NOTES DUE OCT 5 2000 WITH EQUITYPURCHASE
WARRANTS ATTACHED PRICED AT PAR VIA SWISS BANK CORP WARRANTS EXERCISEABLE
TO PURCHASE SHARES IN BAYER AG FROM OCT 12 1993 TO SEPT 27 1996 FEES
STANDARD

RABOBANK NETHERLANDS 150 MILLION SWISS FRANCS OF 25 PRIVATELY PLACED
NOTES WITH EQUITYPURCHASE WARRANTS ATTACHED DUE OCT 4 2000 AND PRICED
AT PAR VIA SWISS BANK CORP WARRANTS EXERCISEABLE TO PURCHASE SHARES IN
ROYAL DUTCH/SHELL GROUP FROM OCT 11 1993 TO NOV 12 1996 TERMS FIXED
SEPT 1 FEES STANDARD

REGIE AUTONOME DES TRANSPORTS PARISIENS FRANCE 25 BILLION FRENCH
FRANCS OF 6 EUROBONDS DUE SEPT 24 2003 AT ISSUE PRICE 995 VIA SOCIETE
GENERALE REOFFERED AT 97825 TO YIELD 63 A SPREAD OF 18 BASIS POINTS
ABOVE COMPARABLE FRENCH TREASURY FEES TWO POINTS

REGION ILE DE FRANCE FRANCE 600 MILLION FRENCH FRANCS OF 6 EUROBONDS
DUE SEPT 28 2000 AT ISSUE PRICE 10125 VIA BANQUE PARIBAS REOFFERED AT
9955 TO YIELD 6081 A MARGIN OF 22 BASIS POINTS ABOVE COMPARABLE FRENCH
TREASURY FEES 03 POINT

VERBUNDSGESELLSCHAFT AUSTRIA 250 MILLION SWISS FRANCS OF 45 PUBLIC
BONDS DUE OCT 6 2005 PRICED AT 1025 VIA BANK VON ERNST & CIE FEES 275
POINTS 9309010069 930901 BUSINESS BRIEF SYMANTEC INC PC SOFTWARE
CONCERN AGREES TO ACQUIRE FIFTH GENERATION

SYMANTEC INC A CUPERTINO CALIF MAKER OF PERSONAL COMPUTER SOFTWARE
SAID IT AGREED TO ACQUIRE FIFTH GENERATION SYSTEMS INC OF BATON ROUGE LA
IN AN EXCHANGE OF STOCK VALUED AT ABOUT 466 MILLION

FIFTH GENERATION IS A DEVELOPER AND MARKETER OF UTILITIES SOFTWARE FOR DOS
WINDOWS OS/2 UNIX MACINTOSH AND NETWARE COMPUTER OPERATING SYSTEMS
SYMANTEC SAID THE COMPANY WILL BE INTEGRATED INTO ITS PETER NORTON COMPUTING
GROUP

GORDON E EUBANKS SYMANTEC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID
THE PROPOSED ACQUISITION WILL ALLOW US TO COMPETE MORE EFFECTIVELY WITH
OPERATING SYSTEM VENDORS WHO ARE NOW PROVIDING DESKTOP UTILITIES

SYMANTEC SAID IT WILL ISSUE 28 MILLION SHARES OF ITS STOCK IN EXCHANGE FOR
OUTSTANDING SHARES OF FIFTH GENERATION SYMANTEC SHARES ROSE 1 YESTERDAY TO
16625 IN NATIONAL OVERTHECOUNTER TRADING 9309010068 930901 KUWAIT
WEIGHS ALLOWING WESTERN FIRMS TO AGAIN SHARE IN PRODUCING ITS OIL  
BY CALEB SOLOMON AND ALLANNA SULLIVAN STAFF REPORTERS OF THE WALL STREET
JOURNAL

KUWAIT IS HOLDING TALKS WITH SEVERAL WESTERN OIL COMPANIES THAT COULD LEAD
TO PRECEDENTSETTING PRODUCTION SHARING AGREEMENTS IN ITS VAST OIL
FIELDS

THE DISCUSSIONS SO FAR CENTER ON TECHNICAL SERVICES THAT THE OIL COMPANIES
CAN PROVIDE WITH THEIR PERSONNEL BUT IT IS UNDERSTOOD THAT A PROPOSED
SECOND STAGE OF TALKS WOULD INCLUDE THE POSSIBILITY OF PARTICIPATING IN THE
DEVELOPMENT OF KUWAIT'S OIL RESERVES THE WORLD'S THIRD LARGEST

OPENING UP KUWAIT WOULD REPRESENT A HISTORIC REVERSAL OF THE NATIONALIZATION
OF ITS OIL FIELDS VIEWING ITS PETROLEUM BUSINESS AS A MATTER OF NATIONAL
SOVEREIGNTY KUWAIT IN 1975 PAID BRITISH PETROLEUM CO AND GULF OIL CO 50
MILLION TO BUY THEIR SHARES OF KUWAIT'S OIL RESERVES IRAQ SAUDI ARABIA AND
VENEZUELA ALSO TOOK OVER THEIR OIL FIELDS IN THE 1970S

FOR SOME KUWAITI OFFICIALS FOREIGN INVESTMENT IS NOW VIEWED AS A MEANS OF
PROVIDING ADDED SECURITY IN THE VOLATILE MIDDLE EAST AS WELL AS AN
OPPORTUNITY TO RECEIVE MUCHNEEDED TECHNOLOGY FOR THE OIL COMPANIES WHICH
HAVE HAD TROUBLE FINDING NEW RESERVES ACCESS TO KUWAIT COULD VASTLY REDUCE
EXPLORATION COSTS

THERE ARE DISCUSSIONS WITH SOME OIL COMPANIES FOR INCREASED COOPERATION
SAID SERGE TCHURUK CHIEF EXECUTIVE OF TOTAL SA FRANCE'S SECONDLARGEST OIL
COMPANY SOME ARE PROBABLY MORE ADVANCED THAN WE ARE HE ADDED THOSE
INCLUDE MOBIL CORP OF FAIRFAX VA AMOCO CORP CHICAGO ALSO IS HOLDING
TALKS WITH KUWAIT AND CHEVRON CORP SAN FRANCISCO HAS HELD DISCUSSIONS
BRITISH PETROLEUM LONDON LAST SUMMER UNDERTOOK THE FIRST TECHNICAL
ASSISTANCE PROJECT WITH KUWAIT

KUWAIT IS GOING FULL BLAST IN THE PRIVATIZATION OF EVERYTHING SAID VAHAN
ZANOYAN SENIOR DIRECTOR OF PETROLEUM FINANCE CO CONSULTANTS IN
WASHINGTON I COULDN'T BELIEVE IT WHEN I HEARD THE OIL SECTOR IS ON THE
BLOCK HE SAID ADDING THAT THE EUPHORIA ABOUT TAKING OVER YOUR NATURAL
RESOURCES IS GONE

JOSEPH STANISLAW PARISBASED MANAGING DIRECTOR OF CAMBRIDGE ENERGY RESEARCH
ASSOCIATES SAID THE UNTHINKABLE OF HAVING FOREIGN PARTICIPATION IS
BECOMING THINKABLE MR STANISLAW SAID THAT KUWAIT AND OTHER COUNTRIES THAT
NATIONALIZED THEIR FIELDS HAVE REALIZED THEY CAN STILL CONTROL THEIR NATURAL
RESOURCES IF THEY CAN ARRANGE A SUITABLE STRUCTURE FOR PRIVATE INVESTMENT

FURTHER A PERSON FAMILIAR WITH THE KUWAITI GOVERNMENT SAID THERE IS ALSO
TALK SO FAR JUST WITHIN THE COUNTRY ABOUT OFFERING A JOINTVENTURE TO
MULTINATIONAL OIL COMPANIES TO DEVELOP AN OIL FIELD ALONG THE KUWAITIRAQ
BORDER AS A MEANS OF PROVIDING ADDED SECURITY AGAINST AN ANOTHER IRAQI
INVASION THE IDEA FOR THE BORDER AREA AS WELL AS SOME OF THE OTHER
PRODUCTIONSHARING POSSIBILITIES IS THAT WITH DIRECT WESTERN INVESTMENT IN
KUWAIT THE COUNTRY WOULD BE SAFER FROM ATTACK

SOME OIL INDUSTRY OFFICIALS SAID THAT IF THEY CAN GET THEIR FOOT INTO
KUWAIT'S DOOR THROUGH A TECHNICAL AGREEMENT IT COULD TAKE SEVERAL YEARS
BEFORE THEY COULD TRY TO FOLLOW THROUGH ON ACHIEVING PRODUCTIONSHARING
AGREEMENTS ACTUAL OWNERSHIP OF KUWAIT'S RESERVES THROUGH AN EQUITY INTEREST
ISN'T BEING CONSIDERED THEY SAID

STILL TOM BURNS MANAGER OF ECONOMICS FOR CHEVRON SAID A
PRODUCTIONSHARING AGREEMENT WOULD BE OF ACUTE INTEREST TO WESTERN OIL
COMPANIES HE ADDED THERE IS NO DOUBT THAT KUWAIT HAS A LOT OF OIL AND
THE BIGGEST RISK IN THE OIL BUSINESS IS LOOKING FOR OIL

THERE HAVE ALREADY BEEN SOME STEPS TOWARD PRIVATIZATION AND FOREIGN
INVESTMENT KUWAIT'S GOVERNMENTRUN UTILITY INDUSTRY HAS ASKED FOREIGN AND
KUWAITI COMPANIES TO BID ON NOT JUST THE CONSTRUCTION BUT ALSO THE OPERATION
OF A POWER PROJECT TO REPLACE THE SHUAIBA NORTH POWER AND DESALINATION
PLANT DAMAGED IN THE IRAQI INVASION ENRON CORP OF HOUSTON A NATURAL GAS
COMPANY ALONG WITH PARTNERS THAT INCLUDE KUWAITI INVESTORS IS AWAITING
WORD ON ITS BID A SPOKESWOMAN SAID

SEPARATELY KUWAITI OFFICIALS ARE HOLDING TALKS ABOUT A JOINT VENTURE IN ITS
CHEMICAL BUSINESS A PERSON FAMILIAR WITH THE GOVERNMENT SAID

IN ADDITION INDIVIDUALS WITH KNOWLEDGE OF THE KUWAITI OIL INDUSTRY SAID
THERE IS A PROPOSAL BEING CONSIDERED WITHIN THE COUNTRY TO DIVIDE THE
NATIONAL OIL COMPANY KUWAIT OIL CO ON A REGIONAL BASIS AND THEN DOLE OUT
EACH REGION TO A DIFFERENT TECHNICAL ADVISER

A MOBIL SPOKESMAN DECLINED TO COMMENT SPECIFICALLY ABOUT ANY TALKS WITH
KUWAIT BUT SAID MOBIL HOLDS DISCUSSIONS ALL OVER THE WORLD LIKE OTHER
COMPANIES DO ALL THE TIME

CHEVRON SAID IT HELD TALKS WITH KUWAIT LAST YEAR BUT THEY DIDN'T LEAD TO AN
AGREEMENT PRODUCTION WAS ALLUDED TO AS A POSSIBILITY A SPOKESMAN SAID

AN AMOCO SPOKESMAN DECLINED TO CHARACTERIZE THE NATURE OF THE COMPANY'S
DISCUSSIONS WITH KUWAIT BUT ADDED WE HOPE THEY'LL BE FRUITFUL

IN WASHINGTON KUWAITI OFFICIALS COULDN'T BE REACHED

BP WHICH SAID IT ISN'T CURRENTLY HOLDING TALKS ON PRODUCTION SHARING
SIGNED THE OIL INDUSTRY'S FIRST TECHNICAL AGREEMENT WITH KUWAIT LAST YEAR
IN THE SPRING THE COMPANY HAD BROADLY HINTED IT WAS SEEKING PRODUCTION
WHICH AT THE TIME ANGERED KUWAITI OFFICIALS

WHILE THE PERSIAN GULF WAR HAS ALTERED KUWAIT'S STANCE ON BUSINESS
INVESTMENT AS WELL AS OPENED ITS SOCIETY IN OTHER AREAS THERE WILL STILL BE
DEEP RESISTANCE TO FOREIGN COMPANY PARTICIPATION IN THE COUNTRY'S OIL
INDUSTRY DESPITE THE WAR KUWAIT ISN'T BELIEVED TO BE AS CASHSTRAPPED AS
OTHER GULF OIL PRODUCERS

MR ZANOYAN OF PETROLEUM FINANCE SAID THAT INCOME FROM THE OIL FIELDS IS SO
INEXTRICABLY TIED TO KUWAIT'S POLITICAL ECONOMIC AND SOCIAL STRUCTURE THAT
EVEN WITH A RELAXED ATTITUDE THERE ISN'T ANY GUARANTEE THAT THE COUNTRY
SEVERAL YEARS DOWN THE ROAD WILL CONTINUE ON THE ROAD TO FOREIGN
PARTICIPATION ONE KEY HE SAID WILL BE THE ABILITY OF PRIVATE KUWAITI
BUSINESSES TO PARTICIPATE AS WELL

BUT HE ADDED THAT THE COUNTRY HAS A GENUINE NEED FOR TECHNOLOGY BEFORE
THE IRAQI INVASION MUCH OF THE WORK IN THE OIL FIELDS WAS DONE BY
PALESTINIANS MANY OF WHOM WERE DENIED THEIR JOBS AFTER THE WAR IT'S STILL
UNKNOWN HOW BADLY THE RESERVOIRS WERE DAMAGED BY THE WAR 9309010067
930901 LEISURE & ARTS BOOKSHELF DEFT BUT SHORTER TRAIL TALE  
BY PETER R KANN

IF YOU LOVED LARRY MCMURTRY'S LONESOME DOVE YOU'LL AT LEAST LIKE THE
SEQUEL STREETS OF LAREDO SIMON & SCHUSTER 25 I DID AND DO

BUT EVEN IF YOU FOUND LONESOME DOVE AS SLOW AND STRENUOUS AS THE MARATHON
CATTLE DRIVE IT CHRONICLED THERE'S HOPE AT A MERE 589 PAGES STREETS OF
LAREDO IS A TIGHTLY WRITTEN NOVELETTE

THIS BOOK IS PARTICULARLY APT READING FOR LABOR DAY WEEKEND IF YOU'D LIKE TO
REFLECT ON HOW HARD YOUR FRONTIER FOREBEARS USED TO HAVE TO WORK AT TRACKING
AND ESCAPING CAPTURING AND RESCUING MAIMING AND MENDING EACH OTHER

IN STREETS OF LAREDO MR MCMURTRY PICKS UP THE TRAIL OF THOSE CHARACTERS
NOT ALREADY SHOT TRAMPLED DROWNED OR HUNG IN THE EARLIER VOLUME SADLY
THE BEST OF THEM THE EVERIRREVERENT HERO AUGUSTUS MCCRAE DIDN'T SURVIVE
TO SEE LAREDO

SOME TWO DECADES HAVE PASSED AUGUSTUS'S PARTNER AN AGED AND ARTHRITIC
WOODROW CALL SETS OFF TO TRACK DOWN THE MEXICAN DESPERADO JOEY GARZA IN
BADLANDS ALONG THE MEXICAN BORDER ULTIMATELY WITH THE HELP OF TWO STRONG
AND SAINTLY WOMEN CALL FULFILLS HIS DUTY SORT OF

ALONG THE WAY OLD WOODROW AND WE ENCOUNTER A CAST OF COLORFUL DICKENSIAN
CHARACTERS FAMOUS SHOES THE TRACKER MOX MOX THE MANBURNER AND SOME GENUINE
HISTORICAL FIGURES SUCH AS THE GREEDY HANGING JUDGE ROY BEAN AND THE LACONIC
GUNSLINGER JOHN WESLEY HARDING INDEED THIS IS A DRAMA IN WHICH CHARACTER
ACTORS LARGELY STEAL THE SHOW FROM THE LEADS

BEYOND THE CHARACTERS MR MCMURTRY IS READABLE LESS FOR PLOT THAN FOR
PACING TIME AFTER TIME JUST AS WE ARE GETTING SLEEPY AT CONVERSATIONS
AROUND THE CAMPFIRE ALONG COMES A RIFLE SHOT TO RESTORE OUR FAITH IN
FRONTIER VIOLENCE MCMURTRY NOVELS ARE LONG SLOW TROTS BUT INTERSPERSED
WITH SUDDEN GALLOPS LEAVING THE READER NEVER QUITE FREE TO LET GO OF THE
REINS

MR MCMURTRY ALSO POSES WEIGHTY MORAL DILEMMAS FOR ANY OF US WHO HAPPEN TO
BE BOUNTY HUNTERS PARENTS OR CFOS IF A COLDBLOODED KILLER AND A SADISTIC
ONE TAKE DIFFERENT TRAILS WHICH SHOULD A POSSE PURSUE HOW MUCH LOYALTY DO
WE OWE OUR KIDS WHEN THEY BECOME MASS MURDERERS DO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES PERMIT USING DEBIT LEDGERS AS KINDLING IF THE
ALTERNATIVE IS FREEZING TO DEATH THE ANSWERS ARE BOTH LOTS AND
ASSUREDLY

IT'S WORTH NOTING THAT THE MCMURTRY WILD WEST IS A PLACE THAT WILL PLEASE
POLITICALLY CORRECT READERS CONCERNED ABOUT SEXISM AGEISM AND CONSTRAINTS
ON THE PHYSICALLY DISABLED MOST MCMURTRY HEROES ARE WELL INTO THEIR 70S
HIS HEROINES JUGGLE CAREERS AND MOTHERHOOD AND MULTIPLE DISABILITIES DON'T
SIGNIFICANTLY HINDER EITHER HEROES OR VILLAINS

EVEN REAGANITE READERS WILL BE WARMED BY A WEST IN WHICH CAPITALGAINS TAXES
ARE NONEXISTENT ENTREPRENEURS HAVE FREE RANGE JUSTICE IS SWIFT AND SURE
AND EVEN WITHOUT NAFTA FREE TRADE FLOURISHES ACROSS THE RIO GRANDE

ON THE OTHER HAND A WILD WEST IN WHICH AMPUTATIONS HAVE TO BE HANDLED BY
HOUSEWIVES WITH BOWIE KNIVES MAY BE ENOUGH TO LEAVE EVEN WALL STREET JOURNAL
EDITORIAL WRITERS ARGUING FOR NATIONAL HEALTH CARE

MR KANN IS PUBLISHER OF THE JOURNAL 9309010066 930901 LETTERS TO THE
EDITOR FASCIST LABEL UNFAIR

REGARDING CROATIA TO REPLACE ITS CURRENCY AN AUG 2 WORLD WIRE ITEM I DO
NOT SEE WHY YOU HAD TO EMPHASIZE THE FASCIST PAST OF THE PROPOSED NEW
CURRENCY THE KUNA YOUR PUBLICATION DOES NOT USUALLY CHARACTERIZE THE
GERMAN MARK OR THE JAPANESE YEN AS FASCIST MONEY TO MY BEST KNOWLEDGE
THOSE MONETARY UNITS WERE IN USE DURING WORLD WAR II IN THE COUNTRIES
CONCERNED CROATIA WAS NOT THE ONLY PUPPET FASCIST STATE IN EUROPE DURING
THE WAR YEARS FROM NORWAY TO UKRAINE INCLUDING SERBIA THE NAZIS FOUND
MANY NATIVES WHO WERE MORE THAN WILLING TO SERVE THE INTERESTS OF FASCIST
GERMANY 9309010065 930901 AGRICULTURE SECRETARY CONSIDERS ELIMINATING 
AGENCY'S LOAN ARM

WASHINGTON THE FARMERS HOME ADMINISTRATION MAY BE ELIMINATED AS PART OF
THE CLINTON ADMINISTRATION'S REORGANIZATION OF THE FEDERAL GOVERNMENT

AGRICULTURE SECRETARY MIKE ESPY SAID THAT HE IS THINKING ABOUT TERMINATING
THE AGENCY WHICH SERVES AS A MULTIBILLIONDOLLAR LENDING ARM FOR THE
AGRICULTURE DEPARTMENT HE DIDN'T ELABORATE ON WHAT WOULD BECOME OF THE
AGENCY'S LENDING OPERATIONS IF IT IS ELIMINATED

THE FARMERS HOME ADMINISTRATION WAS CREATED IN 1935 AS A FINANCIAL RESCUE
AGENCY FOR FARMERS DEVASTATED BY THE DEPRESSION IT MAKES LOANS FOR RURAL
HOUSING WATER AND SEWER FACILITIES FLOODCONTROL LEVEES BUSINESS AND
INDUSTRIAL PROJECTS AND RECREATION DEVELOPMENTS AMONG OTHER PURPOSES

MR ESPY PLANS TO RELEASE PLANS FOR STREAMLINING THE DEPARTMENT'S WASHINGTON
HEADQUARTERS NEXT WEEK AS PART OF THE ADMINISTRATION'S GOVERNMENTWIDE
REORGANIZATION THAT IS SCHEDULED TO BE ANNOUNCED BY VICE PRESIDENT AL GORE
I'M GOING TO CUT THIS PLACE SAID MR ESPY IN AN INTERVIEW I'M GOING TO
WHITTLE IT DOWN

EVENTUALLY THE DEPARTMENT PLANS TO CUT 1300 OF ITS 14000 FIELD OFFICES
ACROSS THE COUNTRY THOUGH THOSE CHANGES WON'T BE ANNOUNCED NEXT WEEK MR
ESPY SAID THE DEPARTMENT IS ABOUT 60 OF THE WAY TO DECIDING ON ITS PLANS
FOR THE FIELDOFFICE REORGANIZATION HE SAID DEPARTMENT OFFICIALS HAVE USED
THE REORGANIZATION PLAN PROPOSED IN JANUARY BY FORMER AGRICULTURE SECRETARY
EDWARD MADIGAN AS A STARTING POINT FOR COMING UP WITH THEIR OWN PLAN

MANY OF THE CHANGES UNDER CONSIDERATION WOULD REQUIRE CONGRESSIONAL
APPROVAL WHILE THERE IS CONSIDERABLE SUPPORT IN CONGRESS FOR STREAMLINING
THE AGENCY ANY PLAN IS LIKELY TO DRAW PROTEST FROM AFFECTED TOWNS ACROSS
THE COUNTRY AND THEIR LAWMAKERS 9309010064 930901 BUSINESS BRIEF 
CONTINUUM CO CONCERN TO ACQUIRE VANTAGE FOR 64 MILLION IN NEW STOCK

CONTINUUM CO AN AUSTIN TEXAS COMPUTER CONSULTING CONCERN SAID IT HAS
SIGNED A LETTER OF INTENT TO BUY VANTAGE COMPUTER SYSTEMS INC FOR ABOUT 64
MILLION IN NEW COMMON STOCK

UNDER THE PROPOSED DEAL WHICH IS SUBJECT TO A DEFINITIVE AGREEMENT AND
APPROVAL BY BOTH COMPANIES' BOARDS CONTINUUM WOULD ACQUIRE THE DATA
PROCESSING COMPANY FOR FOUR MILLION NEW SHARES OF CONTINUUM STOCK IF THE
TRANSACTION IS COMPLETED DST SYSTEMS INC A UNIT OF KANSAS CITY SOUTHERN
INDUSTRIES INC AND VANTAGE'S BIGGEST CORPORATE SHAREHOLDER WILL OWN ABOUT
19 OF CONTINUUM STOCK OUTSTANDING

IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CONTINUUM'S SHARES FELL 75
CENTS TO 1625 AND KANSAS CITY SOUTHERN CLOSED AT 39875 UNCHANGED

VANTAGE OWNED BY DST AND ROBERT S MALTEMPO IS AN INSURANCEINDUSTRY DATA
PROCESSING AND CONSULTING COMPANY AND IS EXPECTED TO REPORT 1993 REVENUE OF
ABOUT 45 MILLION 9309010063 930901 INTERNATIONAL BRIEF KOOR
INDUSTRIES LTD SECONDPERIOD NET FELL 58 GAINS IN YEAR EARLIER CITED

KOOR INDUSTRIES LTD ISRAEL'S LARGEST INDUSTRIAL COMPANY REPORTED
SECONDQUARTER NET FELL 58 COMPARED WITH YEAREARLIER RESULTS WHICH WERE
BOOSTED BY EXTRAORDINARY GAINS

KOOR WHICH HAS INTERESTS IN TELECOMMUNICATIONS AND ELECTRONICS SAID NET
DROPPED TO 28 MILLION FROM 67 MILLION A YEAR EARLIER REVENUE FOR THE
QUARTER INCREASED 24 TO 547 MILLION THE YEARAGO NET INCOME FIGURES
CONTAINED 48 MILLION IN NONRECURRING GAINS STEMMING FROM THE ELIMINATION
OF CERTAIN PROVISIONS BETWEEN KOOR AND TADIRAN LTD THE COMPANY SAID

FOR THE FIRST SIX MONTHS PROFIT DECREASED 20 TO 95 MILLION FROM 119
MILLION THE YEAREARLIER QUARTER

THE COMPANY SAID EXPORTS FOR THE FIRST SIX MONTHS OF 1993 INCREASED TO 404
MILLION FROM 368 MILLION THE YEAR EARLIER SHAREHOLDER EQUITY AS OF JUNE
30 WAS 425 MILLION UP FROM 332 MILLION ON DEC 31 1992 9309010062
930901 LEISURE & ARTS OFFICIAL COVERUP CLOTHING THE NAKEDS  BY
JANE VANDENBURGH

BERKELEY CALIF TELEGRAPH AVENUE WITH ITS STREET VENDORS BENEATH THEIR
NEW PARASOLS AND THE FOREIGN TOURISTS CAN STILL BE FUN ON A PRETTY DAY A
PLACE THAT SEEMS LIKE A FESTIVE DESTINATION AND TODAY IS UNLIKE ANY OTHER
IN THE AVENUE'S HISTORY FOR ON THIS DAY AUG 19 AT 5 PM ACCORDING TO
ORDINANCE NO 6199NS IT WILL BECOME ILLEGAL TO BE PUBLICLY NUDE ANYWHERE
IN BERKELEY

MY CHILDREN ARE OUT OF SCHOOL WE GO TOGETHER LOOKING FOR NAKED PEOPLE ON
THIS LAST LEGAL DAY MY KIDS THINK OF THEM WITH A MIX OF DISBELIEF AND
HILARITY AN ACTUAL GROWNUP PERSON WOULD GO AROUND NAKED IN PUBLIC BY
ADAMANT PERSONAL CHOICE SHOWING ALL OF HIS OR HER OWN PERSONAL PRIVATE BODY
WHEN EVERYBODY ELSE IS DRESSED EACH OF MY CHILDREN ALREADY KNOWS THE
COMPLEX DEMANDS OF FASHION

MY DAUGHTER AND A FRIEND OF HERS BOTH EIGHT YEARS OLD WERE WITH ME IN THE
CAR LAST SPRING WHEN WE FIRST SPOTTED THE NAKED GUY WITH WHOM ALL THIS
BEGAN THERE HE WAS BIG AS LIFE JUST AS I TURNED LEFT OFF TELEGRAPH AT
SPROUL PLAZA SEEING HIM THAT DAY MADE THE THREE OF US LAUGH THE WHOLE WAY
HOME WE FELT LUCKY I THINK BLESSED WITNESSES TO SOMETHING EXTRAORDINARY

ANDREW MARTINEZ IS A TALL GOODLOOKING HISPANIC YOUTH WITH A BUZZ CUT HE
WAS A SOPHOMORE AT THE UNIVERSITY OF CALIFORNIA HERE MAJORING IN RHETORIC
UNTIL HE WAS EXPELLED LAST YEAR AFTER IGNORING SEVERAL WARNINGS BY THE
UNIVERSITY THAT HE HAD TO SHOW UP TO CLASS IN MORE THAN JUST HIS TEVA
SANDALS AND HIS BACKPACK MY SON WHO IS 13 AND UP ON SHOES SAYS THIS IS A
SANDAL THAT IS ERGONOMICALLY DESIGNED AND COSTS MORE THAN 40

THE NAKED GUY AS A MATTER OF AESTHETICS HAPPENS TO BE GREAT AT BEING
NAKED HE LOOKS JUST THE WAY ONE WOULD HOPE TO LOOK IF ONE WERE DEAD SET ON
GOING ABOUT NAKED IN PUBLIC HE SEEMS PERFECTLY AT EASE QUITE NATURAL AT
IT

BUT THEN THERE IS THE NAKED FAMILY THEY NUMBER FOUR ALL THE SAME FAIR
CAUCASOID VARIETY THAT TYPE OF SKINNY WHITE PERSON WHO LOOKS SO NAKED
NAKED THE THREE ADULTS OF THE GROUP WEAR FLOPPY HATS AND SHOES THAT DON'T
QUITE MATCH THE OUTFIT THEY ALSO LACK THE NAKED GUY'S GOOD POSTURE HIS
POISE HE IS MOST OFTEN SEEN ALONE WHILE THE OTHER NAKEDS TRAVEL IN LITTLE
PACKS OR GROUPS

THE NAKED FAMILY CONSISTS OF AN OLDER BEARDED LONGHAIRED MAN WHO
SEEMINGLY STILL IN HIS WOODHIPPIE PHASE EXUDES ALL THE PASSIVE
BELLIGERENCE OF YOUR LEAST FAVORITE BROTHERINLAW THE NAKED FATHER HAS
NONETHELESS DRAWN TO HIM TWO YOUNG WOMEN EACH ONE PRETTY EACH ONE WITH HER
PUBIC HAIR ORNAMENTALLY SHAPED ONE AS A HEART AND ONE AS THE ACE OF SPADES

THEY WERE PUSHING THEIR BABY WHO WAS WEARING DIAPERS WHEN I SAW THEM THEY
HAD HIM IN A STROLLEE AND WERE HEADED UPHILL FAST ON DURANT THEY SEEMED
EXUBERANT ENOUGH CONSIDERING THEY WERE BEING PURSUED BY A GROUP OF SHOUTING
YOUTHS VISITING TELEGRAPH FOR THE DAY IN FROM SOME MORE NORMAL COMMUNITY

I'VE HEARD RUMORS TOO OF A NAKED GRANDMA A NAKED PARK & SHOPPER SEVERAL
NAKED BIKE RIDERS THERE'VE BEEN ENOUGH NAKED STROLLERS OUT ON THE HOT DAYS
OF SUMMER TO IMAGINE YOU'LL GLIMPSE A GROUP OF THEM ANY GIVEN WEEKEND ONE
MAN WALKS WITH HIS GUITAR CAREFULLY IN FRONT OF HIM REMINDING YOU OF
INSPECTOR CLOUSEAU SNEAKING AROUND THE NUDIST COLONY BUT HE IS STILL NUDE
UNDER THE NEW LAW

TO BE NUDE AND I QUOTE FROM ORDINANCE NO 6199NS WITHIN THE MEANING
OF THIS ORDINANCE MEANS THE ABSENCE OF AN OPAQUE COVERING WHICH COVERS THE
GENITALS PUBIC HAIR BUTTOCKS PERINEUM ANUS OR ANAL REGION OF ANY PERSON
OR ANY PORTION OF THE BREAST AT OR BELOW THE AREOLA THEREOF OF ANY FEMALE
PERSON

THE LEGAL MEANING OF NUDE SOUNDS CLINICAL AWKWARD IT'S THE ORDINANCE I
FEEL THAT IS DISQUIETING WITH ITS WORDING VERGING TOWARD IMMODESTY THOSE
WHO VIOLATE THE LAW I FIND OUT BY CALLING THE CITY CLERK WILL NOT BE
ARRESTED INSTEAD THE NAKEDS WILL BE ISSUED A CITATION TICKETED THEN SET
FREE EVEN THIS MILD PENALTY HAS SOME PEOPLE UP IN ARMS

I'VE PICKED UP A CARD AT THE YOGURT SHOP NEAR THE AVENUE THAT ADVERTISES THE
XPLICIT PLAYERS ONE PRONAKED ORGANIZATION THAT HAS A NUMBER TO CALL THE
WOMAN I REACH SAYS A PETITION DRIVE WAS LAUNCHED THAT WOULD KEEP THE
ORDINANCE FROM GOING INTO EFFECT 5 PM WAS THE DEADLINE SET BY THE CITY
CLERK FOR THE DELIVERY OF 4400 SIGNATURES THE WOMAN'S VOICE SOUNDS WARY
AS IF SHE'S TAKEN TOO MANY CALLS THAT HAVE DRIFTED TOWARD OBSCENITY SHE
TELLS ME TO CALL THE DWIGHT WAY CAFE AND MICRO WORLD I KNOW IT A
VIRTUALREALITY GAME AND GRUNGE PARLOR THIS SHE SAYS IS WHERE THEY
CONGREGATE

I SPEAK TO BILL YERGER OWNER OF THE CAFE WHO SAYS THE PETITION DRIVE HAS
FAILED BUT THAT ANOTHER ATTEMPT WILL BE MADE THE LANGUAGE SO CLEARLY
DISCRIMINATES AGAINST WOMEN THAT IT CAN BE THROWN OUT HE'S SURE ANOTHER
PETITION DRIVE IS REPORTEDLY MOUNTING ATTACKING THE LAW ON THE BASIS OF
WHAT HE CALLS ITS GENDER FACTOR

THERE ARE EIGHT WOMEN ON THE BERKELEY CITY COUNCIL AND IT WAS THE
APPEARANCE BEFORE THEM OF THE NAKED GUY THAT PROMPTED COUNCILWOMAN MARY
WAINWRIGHT TO DRAFT THE PROPOSAL SHE HAD BEEN AS AMUSED AS I WAS BY THE
STORIES ABOUT MR MARTINEZ SHE TELLS ME WHEN I CALL BUT SHE WAS NOT AMUSED
WHEN HE SHOWED UP IN FRONT OF THE COUNCIL IN HIS USUAL ATTIRE

WHEN THE NAKED GUY CAME NAKED TO CITY COUNCIL SAYING HIS BEING NAKED WAS HIS
MANNER OF FREE EXPRESSION AND HE SHOULDN'T HAVE BEEN THROWN OUT OF SCHOOL
FOR IT MRS WAINWRIGHT WAS PERSONALLY OFFENDED MR MARTINEZ CLAIMS HE IS
PROTECTED BY THE FIRST AMENDMENT MRS WAINWRIGHT DISAGREES AND MY AGE AND
MY RELIGION HAVE NOTHING AT ALL TO DO WITH THIS SHE SAYS AS IF READING MY
MIND OLDER I'M GUESSING BLACK MAYBE A CHURCHGOING CHRISTIAN SHE FOUND
MR MARTINEZ'S APPEARANCE TO BE DISTASTEFUL AND DISRESPECTFUL TO THE WOMEN
IN THE ROOM AND TO THEIR OFFICE AND SHE TOLD HIM SO SHE ASKED HIM TO
LEAVE TO COME BACK AND TO ADDRESS THEM WHEN PROPERLY ATTIRED THEN SHE LEFT
HERSELF WHEN HE REFUSED

HE INFRINGED MRS WAINWRIGHT SAYS ON HER RIGHT TO COMMON COURTESY SHE'S
TIRED TOO OF BERKELEY'S BEING MOTHER AS SHE PUTS IT TO EVERY NEGATIVE
SOCIAL ATTITUDE THERE ARE PLENTY OF PLACES WHERE A PERSON MAY BE NAKED IF
HE WISHES SHE TELLS ME WHEN AND WITH WHOM HE SO CHOOSES INCLUDING IN THE
PRIVACY OF HIS OWN LIVING ROOM

THE COUNCIL MEMBERS DECIDED THAT BEING NUDE IN PUBLIC ON THE AVENUE IS
DIFFERENT FROM BEING UNDRESSED ON A NUDE BEACH WHERE PEOPLE HAVE COME IN
CONSENSUAL AGREEMENT THEY DECIDED NOT TO TURN THE AVENUE OVER TO NUDITY
PASSING THE ORDINANCE BY A WIDE MARGIN

IT SEEMS TO HANG ON THE MATTER OF MUTUALITY AT ANY PUBLIC BATH I'VE EVER
VISITED I HAVE FOUND A SENSE OF DECORUM AN UNSPOKEN ETIQUETTE THAT IS
INSTINCTIVELY UNDERSTOOD AND CAUTIOUSLY OBSERVED GRANTING PEOPLE WHO ARE
STRANGERS A SENSE OF SHARED RESPECT A FEELING OF BEING PROTECTED I LOOK AT
YOU BUT DISCREETLY AND SO SHOULD YOU LOOK AT ME

THE COUNCIL FELT NO COMPUNCTION IN DEFINING NUDITY DIFFERENTLY FOR WOMEN AND
FOR MEN SINCE OUR SOCIETY AT LARGE VIEWS THE TWO SO DIFFERENTLY IT RULED
REGARDING TIME PLACE AND MANNER THAT BEING NUDE IS APPROPRIATE SETTING
STRICTER PERIMETERS FOR PUBLIC BEHAVIOR THE COUNCIL ALSO VOTED TO EXCLUDE
CERTAIN PEOPLE FROM THE ORDINANCE NURSING MOTHERS ARTISTIC PERFORMERS
CHILDREN UNDER 10

IT WAS REALLY CONSIDERATION FOR THE CHILDREN OF BERKELEY MRS WAINWRIGHT
TELLS ME THAT MADE HER WRITE THE ORDINANCE SHE'S SEEN A NAKED MAN BEFORE
SO SHE WASN'T SHOCKED BY MR MARTINEZ SHE SAYS SHE WAS OFFENDED SHE ASKS
ME FLAT OUT HOW WOULD YOUR CHILDREN FEEL SEEING YOU TRAVELING NAKED DOWN
THE SIDEWALK

MY CHILDREN WOULD BE APPALLED I TELL HER I KNOW THIS WITHOUT ASKING
THEM I EMBARRASS THEM ENOUGH FULLY CLOTHED DRAGGING THEM TO THE AVENUE
LOOKING FOR THE NAKEDS MY HAIR DYED WHAT MIGHT OR MIGHT NOT BE DESCRIBED
AS MAHOGANY I HAVE THE WINDOWS OF THE VAN DOWN AND I'M PLAYING TOM
WAITS'S BONE MACHINE TOO LOUDLY NOT MY CHILDREN'S CHOICE OF MUSIC EACH
IS AT AN AGE WHEN HE OR SHE REALIZES THAT BY WRITING I DO SOMETHING ODD
FOR A LIVING THAT I DO IT PUBLICLY THAT THEIR OWN RIGHTS TO PRIVACY MAY BE
VIOLATED BY MY DOING IT I MIGHT FOR INSTANCE WRITE SOMETHING ABOUT THE
NAKEDS THEN PUT THEM IN THE STORY

AND THESE GIRLS GOING OUT LIKE THAT MRS WAINWRIGHT IS CONTINUING
SOMEONE MIGHT SEE THEM AND RAPE THEM AND THEN WHERE'D THEY BE SHE DOES
NOT MINCE WORDS DOES NOT SPEAK HALTINGLY IN BERKELEYESE SHE IS FULL OF
CONCERN FOR THE BROAD PICTURE UNTROUBLED BY THE TECHNICALITIES WHICH SEEM
TO HER MATTERS OF COMMON SENSE SHE IS NOT IN OTHER WORDS A TYPICALLY
VAGUE GUILTRIDDEN BERKELEY LIBERAL HER CONVICTION IS SO CLEAN AND
CONVINCING I FEEL COMPELLED BY IT IT'S LIKE LISTENING TO GOSPEL I'M MOVED
BY THE ARGUMENT THOUGH HER WORDS AREN'T THOSE I'D CHOOSE

TELEGRAPH AVENUE AS DUSK FALLS BECOMES POSITIVELY MENACING EACH EMPTY
STOREFRONT EACH DOORWAY IS ALIVE WITH ONE OR TWO MOVING SHADOWS THE
DIRTCOLORED SHAPES OF THOSE WHO WERE ONCE CHILDREN WHO NOW LIVE AS
HELPLESSLY AS CHILDREN MIGHT WHO'VE BEEN LOCKED OUT OF THE HOUSE AT NIGHT
HOMELESS AND ALONE

TODAY IS THE DAY WHEN PUBLIC NUDITY BECOMES ILLEGAL FOR THE FIRST TIME EVER
IN BERKELEY'S HISTORY A PERSON GOING NAKED ON THE AVENUE ASKS TOO MUCH OF
THE REST OF US MRS WAINWRIGHT FEELS AND IS PLACING HIMSELF OR HERSELF AT
RISK THIS CONCERNS HER AND SHE IS NOT AMUSED

MS VANDENBURGH IS A NOVELIST IN BERKELEY 9309010061 930901 BUSINESS
BRIEF DESTEC ENERGY INC NATURALGAS PURCHASE BOOSTS RESERVES IN
COLORADO REGION

DESTEC ENERGY INC HOUSTON SAID IT PURCHASED ABOUT 38 BILLION CUBIC FEET
OF NATURALGAS RESERVES IN THE SAN JUAN BASIN OF COLORADO TERMS WEREN'T
DISCLOSED

THE ACQUISITION FROM DALLASBASED CLOSELY HELD COMPANIES PALO PETROLEUM INC
AND EAGLE OIL & GAS CO DOUBLES DESTEC'S GAS RESERVES IN THAT REGION THE
GAS PRODUCED IN THE SAN JUAN BASIN CAN BE DELIVERED TO DESTEC'S COGENERATION
FACILITIES ON THE WEST COAST AS WELL AS TO ADDITIONAL MARKETS IN THE
SOUTHWESTERN AND EASTERN US PALO PETROLEUM WILL OPERATE THE PROPERTIES FOR
DESTEC

DESTEC AN INDEPENDENT POWER GENERATION COMPANY SAID ITS GAS RESERVES
CURRENTLY TOTAL 74 BILLION CUBIC FEET UP FROM 36 BILLION CUBIC FEET BEFORE
THE PURCHASE BESIDES PROVIDING FUEL FOR THE COMPANY'S POWER PROJECTS GAS
RESERVES FACILITATE FINANCING OF NEW PROJECTS AS LENDERS OFTEN REQUIRE FUEL
RESERVES A DESTEC SPOKESMAN SAID 9309010060 930901 AUTOS REDESIGN OF
HONDA'S MANAGEMENT FACES FIRST TEST WITH UNVEILING OF NEW ACCORD  
BY MICHAEL WILLIAMS AND KRYSTAL MILLER STAFF REPORTERS OF THE WALL STREET
JOURNAL

HONDA MOTOR CO IS TRYING TO ROAR BACK INTO THE FAST LANE POWERED BY A NEW
TOPDOWN MANAGEMENT STYLE IN PLACE OF ITS FAMOUS BOTTOMUP APPROACH

WE DECIDED WE NEEDED ONE TOP LEADER SAYS NOBUHIKO KAWAMOTO THE COMPANY'S
57YEAROLD PRESIDENT

MR KAWAMOTO A FORMER ENGINEER WHO TOOK THE WHEEL IN 1990 HAS STARTED WHAT
AMOUNTS TO A CULTURAL REVOLUTION HONDA HAS MADE ITS HANDSOFF DIRECTORS
TAKE CONTROL OF FRONTLINE OPERATIONS POWERFUL CAR CZARS NOW RUN THE
DEVELOPMENT OF NEW MODELS MIDDLE MANAGERS HAVE CRYSTALCLEAR JOB
RESPONSIBILITIES FOR THE FIRST TIME IN HONDA'S 47 YEARS AND MR KAWAMOTO
CALLS THE KEY SHOTS NOT COMMITTEES

MR KAWAMOTO'S REFORMATION WHICH ACCELERATED AFTER HE HAD A WRENCHING
MEETING WITH THE COMPANY'S AGING FOUNDER FACES ITS FIRST BIG TEST TODAY
WITH THE DEBUT OF THE REDESIGNED ACCORD ONCE AMERICA'S BESTSELLING CAR
INSIDE HONDA SAYS EXECUTIVE VICE PRESIDENT HIROYUKI YOSHINO THE CAR IS
CONSIDERED VERY IMPORTANT FOR SURVIVAL

THAT'S BECAUSE HONDA HAS SPUTTERED SINCE THE 1980S WHEN IT RODE TO GLORY
WITH AN ECCENTRIC CULTURE FOLLOWING WHAT INSIDERS CALLED THE HONDA WAY
MIDDLE MANAGERS HAMMERED OUT POLICIES IN INFORMAL BULL SESSIONS CALLED
WAIGAYA A HONDA WORD THAT ROUGHLY TRANSLATES AS NOISYLOUD DECISIONS
FILTERED UP TO HONDA'S BOARD ROOM WHERE TOP EXECUTIVES HELD WAIGAYA OF
THEIR OWN MEANWHILE THE ENGINEERING WIZZES AT HONDA'S RESEARCH AND
DEVELOPMENT UNIT HAD ALMOST FREE REIN TO DESIGN THE CARS

THE HONDA WAY WORKED WONDERS WHILE THE COMPANY WAS SMALL AND EXPANDING BUT
IT HELPED CAUSE BIGCOMPANY DISEASE WHEN HONDA BUILT UP A HUGE WORK FORCE
AND ADDED FACTORIES AROUND THE WORLD WHEN THE HIGHSPEED GROWTH SLOWED
HONDA PITCHED INTO THE DASHBOARD

THE LIMITS HIT HOME WITH THE DEVELOPMENT OF THE ACCORD THAT ROLLED OUT IN
1989 HONDA HAD HOPED TO MAKE THE MODEL A WORLD CAR A SINGLE VEHICLE FOR
ITS MAJOR MARKETS BUT HONDA'S JAPANESE AND US OPERATIONS BICKERED OVER
FEATURES SO THE COMPANY CREATED A DIFFERENT CAR FOR EACH COMPLICATING
MATTERS THE HEADSTRONG ENGINEERS BUILT THE CAR WITHOUT SEEKING MUCH
COSTCUTTING AND STYLING ADVICE FROM FACTORY AND MARKETING PEOPLE HONDA
SOLD SCADS OF ACCORDS MAINLY IN THE US BUT THE HIGH STARTUP COSTS
CRIMPED PROFIT

ENTER THE KAWAMOTO WAY IN ONE OF HIS FIRST CHANGES MR KAWAMOTO PLUCKED
SOME LIKEMINDED ENGINEERS FROM R&D AND GAVE THEM CONTROL OVER SETS OF
SIMILAR HONDA CARS FOR THE NEW ACCORD PROJECT TOP MANAGEMENT ISSUED THE
CAR'S CZAR TOMOYUKI SUGIYAMA A SIMPLE INSTRUCTION DESIGN A SINGLE BASIC
ACCORD TO SUIT AMERICAN TASTES THE FATE OF THIS COMPANY IS IN YOUR
HANDS MR KAWAMOTO TOLD MR SUGIYAMA

THESE DAYS MR SUGIYAMA LEANS ON HIS FORMER R&D COLLEAGUES TO TOE HONDA'S
NEW LINE TEAM WORK IS PART OF THE REGIMEN HE HAD R&D MODIFY THE ACCORD
SLIGHTLY FOR JAPAN TO PLEASE THE SALES DIVISION

HE HAS ORDERED UP COSTCUTTING AS WELL THE R&D SIDE WANTED TO BUILD AN
INNOVATIVE SUSPENSION FROM SCRATCH NOT SO FAST SAID MR SUGIYAMA FIRST
VISIT THE PARTS FACTORIES AND FIGURE OUT HOW TO MAKE THE SUSPENSION USING
MUCH OF THE OLD EQUIPMENT IN THE END THE PARTS MAKERS INVESTED HALF AS
MUCH MONEY IN NEW EQUIPMENT AS THEY HAD FOR THE PREVIOUS CAR AND HELD
DOWN PRICES

MR SUGIYAMA ALSO TAPPED SOME YANKEE INGENUITY ABOUT 90 OF HONDA'S AMERICAN
ENGINEERS MOVED TO JAPAN FOR TWO TO THREE YEARS TO HELP CREATE THE CAR BY
PICKING THE BRAINS OF BOTH US AND JAPANESE WORKERS THE TEAM WAS ABLE TO
DESIGN A WIDER CAR WITHOUT CHANGING THE COSTLY ASSEMBLYLINE FIXTURES AT THE
TWO ACCORD PLANTS ONE IN JAPAN AND ONE IN MARYSVILLE OHIO JUST AT THE
JAPANESE FACTORY THE ACHIEVEMENT SAVED HONDA MORE THAN 9 MILLION

LITTLE CHANGES HELPED TOO WARREN MILLER WHO TEACHES HONDA WORKERS AT
MARYSVILLE TO ASSEMBLE NEW MODELS FOUND THAT AN AIR TUBE ON THE NEW CAR WAS
TOO SMALL TO INSTALL EASILY SO THE JAPANESE DESIGNERS MADE IT BIGGER
WORKING IN JAPAN HELPED US KNOW WHAT WOULD AND WOULDN'T WORK SAYS MR
MILLER

AND THE PAYOFF HONDA SAYS IT AND ITS PARTS MAKERS SPENT JUST HALF AS MUCH
MONEY ON FACTORY EQUIPMENT FOR THE NEW ACCORD AS THEY HAD FOR THE LAST
VERSION THE NEW ACCORD TAKES HALF ITS PARTS FROM OTHER HONDA CARS UP FROM
20 FOR THE OLD ACCORD AS A RESULT SAY ANALYSTS HONDA WILL BE ABLE TO
KEEP ITS US STICKER PRICE INCREASE TO LESS THAN 2

HONDA'S 1993 ANNIVERSARY EDITION ACCORD LX WITH AUTOMATIC TRANSMISSION
ANTILOCK BRAKES A DRIVER'S SIDE AIRBAG AND OTHER AMENITIES COSTS 19030
INCLUDING DESTINATION CHARGES A SIMILARLY EQUIPPED FORD TAURUS GL COSTS
17433 WHILE AN EQUIVALENT TOYOTA CAMRY LE COSTS 21433

BUYERS OF THE NEW ACCORD WILL GET A SPORTIER CAR IT HAS A MORE PRONOUNCED
WEDGE SHAPE WITH A LOWER SNOUT AND HIGHER REAR AND A QUIETER SMOOTHER
RIDE SAY PEOPLE WHO HAVE DRIVEN IT TOPOFTHELINE ACCORDS WILL CARRY A
NEW FOURCYLINDER 16VALVE ENGINE THAT HONDA SAYS GIVES MORE POWER AND 10
BETTER GAS MILEAGE THAN THE PREVIOUS CAR A SIXCYLINDER ENGINE COMES NEXT
YEAR THE AIRCONDITIONING CONTROLS ARE BETTER PLACED SAYS ONE DRIVER
THOUGH THE SLANTED DASHBOARD DOESN'T PERMIT STACKING MAPS AND TAPES LIKE
ALL 1994 HONDAS THE ACCORD WILL BE EQUIPPED WITH DUAL AIRBAGS

HONDA SAYS ITS BIGGEST BREAKTHROUGH WAS LEARNING HOW TO BUILD THE SAME BASIC
MODEL IN JAPAN AND THE US WITHOUT EXPENSIVE RETOOLING A WORLD CAR ON A
SHOESTRING MR KAWAMOTO SAYS HIS NEXT STEP WILL BE TO BEEF UP THE
INDEPENDENCE OF HONDA'S OVERSEAS OPERATIONS A MOVE THE COMPANY BELIEVES
WILL PROTECT IT FROM CURRENCY SHIFTS AND EXPORT QUOTAS BY THE YEAR 2000
MR YOSHINO SAYS HONDA'S AMERICAN WING WILL BE ABLE TO DEVELOP A CAR ON ITS
OWN EXCEPT FOR THE ENGINE

THE ACCORD WILL BE THE REAL TEST OF THE SUCCESS OF HONDA'S TOPDOWN
APPROACH SAYS STEPHEN USHER AN ANALYST AT KLEINWORT BENSON HE EXPECTS
HONDA TO LOSE MONEY ON A GROUP BASIS THIS QUARTER BUT BELIEVES THE COMPANY
IS ON THE RIGHT TRACK I THINK HONDA HAS BECOME REVITALIZED UNDER MR
KAWAMOTO HE SAYS

FOR MR KAWAMOTO REMAKING HONDA HASN'T BEEN EASY HIS REFORMS HE SAYS
AMOUNTED TO DENYING THE HONDA WAY OF OUR FOUNDER THE LATE SOICHIRO HONDA
IN FEBRUARY 1991 MR KAWAMOTO SCREWED UP HIS COURAGE AND MADE A PILGRIMAGE
TO THE RETIRED MR HONDA TO SEEK HIS SUPPORT FOR THE RADICAL AGENDA THE OLD
MAN LISTENED QUIETLY THEN ASSENTED SAYS MR KAWAMOTO HE WAS MY TEACHER
HE RAISED ME  I WAS TORN INSIDE

DESPITE MR HONDA'S SUPPORT PEOPLE RESISTED THE REFORMS DURING MR
KAWAMOTO'S WATCH HONDA HAS REVISED THE COMPANY PHILOSOPHY PENNED DECADES
AGO THAT GALLED HONDA VETERANS MR KAWAMOTO RECALLS

YOUNGER EMPLOYEES BRISTLED TOO THE COMPANY NOW HAS JAPANESE MIDDLE
MANAGERS DRAW UP JOB GUIDELINES WITH THEIR BOSSES AND IT BASES THEIR PAY
PARTLY ON HOW WELL THEY MEET THEIR GOALS YOSHIJIRO KOBAYASHI WHO RUNS
HONDA'S EUROPEAN AND NORTH AMERICAN MOTORCYCLE SALES DIVISION SAYS SOME OF
HIS FELLOW MIDDLE MANAGERS HAD DOUBTS ABOUT THE CHANGES

MR KOBAYASHI HIMSELF THOUGH SAYS THE CLEAR CHAIN OF COMMAND MAKES HIS
LIFE EASIER IN THE LAST TWO YEARS THE 46YEAROLD MANAGER HAS STARTED
SELLING IN BOTH NORTH AMERICA AND EUROPE ABOUT 30 MOTORCYCLE MODELS THAT
USED TO BE EXCLUSIVE TO ONE MARKET OR THE OTHER TO GET APPROVAL HE SAYS
HE APPROACHED JUST THREE DIRECTORS IN THE OLD DAYS THE NUMBER WOULD HAVE
BEEN IN THE DOUBLE DIGITS HE SAYS AND EXECUTING THE PLAN WOULD HAVE
TAKEN AN ADDITIONAL YEAR

IN SOME WAYS HONDA HASN'T CHANGED ITS EGALITARIAN STYLE WAIGAYA SURVIVES
THOUGH THE MEETINGS ARE SUPPOSED TO HAVE CLEAR LEADERS MR KAWAMOTO STILL
WORKS CLOSELY WITH HONDA'S DIRECTORS IN ONE BIG COMMUNAL EXECUTIVE ROOM

THAT SAID MR KAWAMOTO CLEARLY DELIGHTS IN HIS ROLE AS HONDA'S UNDISPUTED
NO 1 SOME INSIDERS SAY HIS POWER EVEN SURPASSES THAT ONCE HELD BY MR
HONDA

MY MISSION HE SAYS GRINNING AS HE GRIPS AN IMAGINARY STEERING WHEEL IS
TO TURN THE COMPANY AROUND 9309010059 930901 REVIEW & OUTLOOK
EDITORIAL ASIDES MOO SHU MAC

ALL THAT ECOLOGICAL KOWTOWING THAT MCDONALD'S HAS DONE IN RECENT YEARS MUST
BE PAYING OFF THE NADERITE CENTER FOR SCIENCE IN THE PUBLIC INTEREST NOW
SAYS FOOD INSIDE THE YELLOW ARCHES IS SOMETIMES HEALTHIER THAN CHINESE
CARRYOUT KUNG PAO CHICKEN THEY ALLEGE IS AS FATTY AS FOUR QUARTER
POUNDERS MOO SHU PORK IS A CHOLESTEROL BOMB CAN'T SAY THAT WE LOOK FORWARD
TO THE INCLUSION OF COMPLETE INGREDIENTS DATA ON CHINESE MENUS 9309010058
930901 BUSINESS BRIEF MICROSOFT CORP FIRM SAYS GOVERNMENT PACT WILL
BOOST SOFTWARE USERS

MICROSOFT CORP SAID A NEW GOVERNMENT CONTRACT COULD INCREASE BY AS MANY AS
300000 THE NUMBER OF USERS OF ITS MICROSOFT WORD WORDPROCESSING SOFTWARE

THE CONTRACT AWARDED TO ZENITH DATA SYSTEMS HERNDON VA AND GOVERNMENT
TECHNOLOGY SERVICES INC CHANTILLY VA IS TO INCLUDE PROGRAMS FROM
MICROSOFT OFFICE THE SOFTWARE CONTAINING MICROSOFT WORD AND OTHER PROGRAMS

MICROSOFT WHICH IS A SUBCONTRACTOR TO THE TWO COMPANIES THAT RECEIVED THE
AWARD SAID THERE ARE CURRENTLY MORE THAN 10 MILLION USERS OF MICROSOFT WORD
WORLDWIDE AND THAT UNDER THIS CONTRACT THE PROJECTED USERS WOULD BE IN
VARIOUS DEPARTMENT OF DEFENSE BRANCHES AS WELL AS IN CIVILIAN FEDERAL
AGENCIES

ZENITH DATA AND GOVERNMENT TECHNOLOGY ARE TO DELIVER APPROXIMATELY 300000
PERSONAL COMPUTERS TO THE FEDERAL GOVERNMENT DURING THE NEXT THREE YEARS IN
A CONTRACT THAT MICROSOFT SPOKESMAN AL HOROWITZ ESTIMATES WILL TOTAL IN THE
HUNDREDS OF MILLIONS OF DOLLARS

MICROSOFT IS BASED IN REDMOND WASH 9309010057 930901 INTERNATIONAL BRIEF
 FIAT SPA AUTO MAKER PINS RECOVERY HOPES ON ITS PUNTO MODEL

ITALIAN AUTO MAKER FIAT SPA UNVEILED ITS PUNTO MODEL WHICH IT HOPES COULD
HELP THE COMPANY IF AND WHEN THE EUROPEAN CAR MARKET BEGINS TO RECOVER

EUROPEAN CAR SALES WHICH PLUMMETED ALMOST 30 IN JULY 1993 FROM A YEAR AGO
ARE EXPECTED TO REBOUND IN 1994 SAID PAOLO CANTARELLA MANAGING DIRECTOR OF
FIAT AUTO WITH THE PUNTO FIAT IS READY TO TAKE ADVANTAGE OF THE SALES
RECOVERY EXPECTED IN 1994 HE SAID

FIAT HOPES TO HAVE SOLD 250000 PUNTOS A SMALL FAMILY CAR BY THE END OF
THIS YEAR OFFICIALS SAID AT FULL PRODUCTION FIAT FACTORIES AT MIRAFIORI
AND MELFI WILL MAKE 700000 PUNTO CARS A YEAR FIAT HOPES TO EXPORT 50 OF
ITS PRODUCTION

MR CANTARELLA SAID THE PUNTO WAS PART OF FIAT'S STRATEGY FOR FACING
INCREASINGLY TOUGH COMPETITION IN EUROPEAN MARKETS THE COMPANY PLANS
INVESTMENTS OF 40 TRILLION LIRE 25024 BILLION IN THE AUTO SECTOR OVER 10
YEARS WITH SEVERAL NEW MODELS COMING INTO PRODUCTION 9309010056 930901
LEISURE & ARTS THE MOBILE GUIDE PACKING THROUGH A HEALING YELLOWSTONE
  BY RUTH RUDNER

YELLOWSTONE NATIONAL PARK I HAVE BEEN THROUGH FIRE AND WATER WITH RICHARD
CLARK DICK IS THE OUTFITTER FOR THE YELLOWSTONE INSTITUTE ON MY FIRST
HORSEPACKING TRIP WITH HIM IN 1988 YELLOWSTONE WAS ON FIRE WE WATCHED
FLAMES ENGULF TREES A FEW RIDGES FROM CAMP A RANGER WHO HELICOPTERED INTO
CAMP OUR LAST NIGHT TOLD US WE HAD ONLY ONE WAY OUT ONE ROUTE NOT ON FIRE

THIS SUMMER WE WENT THROUGH WATER CROSSING THE WIDE HIGH FAST
YELLOWSTONE RIVER THE PARK HAD NEVER BEEN MORE BEAUTIFUL DEEPLY GREEN
FULL OF FLOWERS WE RODE THROUGH UNBURNED FORESTS OF SPRUCE AND FIR AND
PINE THROUGH BURNED FORESTS WHERE BLACK POLES OF TREES ROSE IN MYSTICAL
BEAUTY OUT OF MYRIAD GRASSES FLOWERS AND SHRUBS

WHERE THE FIRE WAS SO HOT IT STERILIZED THE EARTH THE GROUND IS COVERED BY
GRASSES AND FLOWERS THE FIRST SEEDS TO BLOW IN BUT WE SAW FEW NEW
TREES WHERE THE EARTH WAS LESS SEVERELY BURNED THE YOUNG TREES WERE ALMOST
ON TOP OF ONE ANOTHER IN A FOREST WITHOUT CANOPY THE FIRE'S FOOTTALL
CHILDREN HAVE EQUAL ACCESS TO THE SUN

IT'S ONE THING TO READ ABOUT HOW LAND RENEWS ITSELF IT'S ANOTHER TO LIVE
INSIDE THE RENEWAL EVEN TEMPORARILY TO WAKE TO IT IN THE MORNING TO RIDE
OR WALK THROUGH IT TO EAT INSIDE IT TO SMELL IT AND TASTE IT AND SEE ITS
BEAUTY AND FEEL ITS WILD INSISTENT LIFE WHEN YOU ARE LUCKY ENOUGH TO BE
ABLE TO DO THIS YOU ENTER FULLY INTO NATURE

OUR TRIP FOLLOWED THE ROUTE OF THE 1870 WASHBURN EXPEDITION THE FIRST
ORGANIZED GROUP TO EXPLORE THE AREA AND ALTHOUGH A RATHER ODD PARTY IT
PLAYED A MAJOR ROLE IN PROMOTING THE WONDERS OF THE YELLOWSTONE REGION
RIDING SOUTH ALONG THE EAST SHORE OF YELLOWSTONE LAKE WE CROSSED LARGE
MEADOWS SLOPING UP FROM VOLCANIC CLIFFS AT THE SHORE CLIFFS OF THE SAME
SHARP REDGRAY ROCK CROWNED THE MEADOWS MAGICAL GARDENS OF RED PAINTBRUSH
BLUE HAREBELLS AND LUPINE WHITE AND MAROON SEGO LILIES YELLOW BUTTERCUPS
PURPLE ASTERS FUCHSIA GERANIUMS THE WATER OF THE DEEP LARGE COLD LAKE
LAPPED AT THE GRAVELLY SHORE IN SMALL STEADY WAVES

THERE WERE 13 OF US INCLUDING RICHARD AND HIS WRANGLER SYLVIA AND 18
HORSES AND MULES ARRIVING LATE AT OUR FIRST CAMP ABOUT HALFWAY DOWN THE
LAKE WE HOBBLED THE STOCK IN MEADOWS THAT WOULD SATISFY ANY HORSE THEN SET
UP CAMP IT WAS DARK WHEN RICHARD SYLVIA AND I BEGAN COOKING DINNER FOR THE
GROUP ON THESE TRIPS WE TAKE TURNS IN THE KITCHEN AND AFTER MIDNIGHT BY
THE TIME WE HAD THE DISHES WASHED AND THE FOOD STRUNG UP OVER THE
20FOOTHIGH BEAR POLE

THIS MY FIFTH TRIP WITH RICHARD WAS MY FIRST INTO THE BACKCOUNTRY AROUND
THE LAKE IT IS A LITTLE USED PART OF THE PARK THERE'S NO FISHING ALONG
IT DICK EXPLAINED WE SAW MANY MOOSE IN THE WET MEADOWS NEAR THE LAKE AND
WHITE PELICANS ON THE WATER DEER BROWSED THE MEADOWS WHERE THE HORSES
GRAZED ALTHOUGH WE WERE IN BEAR HABITAT FOR FIVE DAYS WE SAW NO BEAR AT
NIGHT AROUND THE CAMPFIRE DICK TOLD STORIES ABOUT THE WASHBURN EXPEDITION
SOME CAMPFIRES WHEN 77YEAROLD RUSS DAVIS WHO PLAYS WITH THE BILLINGS
SYMPHONY PULLED OUT HIS HARMONICA WE SANG COWBOY SONGS WE NEEDED THE
CAMPFIRES WE HAD EACH NIGHT AND MORNING FOR WARMTH FEW THINGS ARE SO GOOD
AS NEEDING SOMETHING THAT IS THERE ONE AFTERNOON IT WAS WARM ENOUGH AND
EARLY ENOUGH OUR ONLY DAY OF LESS THAN 12 MILES TO SIT BRIEFLY IN THE
STREAM ON WHICH WE WERE CAMPED THE WASHBURN PARTY HAD CAMPED THERE TOO
DECLARING A PORTION OF THE STREAM FOR WOMEN ONLY FOUR OF US HAD A LOVELY
TIME IN IT CLIMBING OUT ONTO THE SMOOTH COOL STONES BANKING IT WE SAT IN
THE HOT SUN AND KNEW THE WORLD WAS PERFECT

ON THE SECOND DAY OUT DICK ASKED IF I WOULD RIDE A BAY NAMED HOWDY SO THAT
HE COULD GIVE THE GENTLE HORSE I WAS RIDING HAD RIDDEN BEFORE AND KNEW AND
LOVED TO SOMEONE DICK FELT NEEDED HER MORE IT WAS NOT HELPFUL WHEN HE
ADDED HE'S NOT A RUTH HORSE HE'S A RICHARD HORSE WHAT DOES THAT MEAN
I ASKED MACHO HE SAID AND I WAS NOT QUITE SURE HE WAS SMILING BUT I
FELT THERE WAS NO CHOICE

I HAD BEEN RIDING HOWDY 10 MINUTES WHEN WE REACHED THE YELLOWSTONE RIVER
FORD BELOW THE MARSHES WHERE THE RIVER ENTERS THE LAKE'S SOUTHEAST ARM IN
THE RIVER I COULD FEEL THE FORCE OF THE CURRENT PUSHING AGAINST THE HORSE
HOWDY HAD STARTED AFTER THE OTHER HORSES LOST THEIR LINE AND INSISTED ON
HIS OWN ROUTE NO MATTER HOW I TRIED TO TURN HIM THREEQUARTERS OF THE WAY
ACROSS THE WATER WAS ABOVE MY KNEES THE CURRENT URGED US DOWNRIVER I
COULD SEE SUBMERGED LOGS AHEAD OF US BUT HOWDY STEPPED CAUTIOUSLY OVER THEM
AND PUSHED THROUGH TO THE FAR BANK I DISMOUNTED POURED WATER OUT OF EACH
BOOT AND WHEN MY KNEES STOPPED SHAKING CLIMBED BACK ON

BY DAY'S END I KNEW HOWDY WAS A CAREFUL HORSE WHO COULD DO ANYTHING I DON'T
KNOW IF HE IS A MACHO HORSE MAYBE I DON'T KNOW WHAT MACHO MEANS BECAUSE
THESE TRIPS ARE SPONSORED BY THE YELLOWSTONE INSTITUTE THEY HAVE AN
EDUCATIONAL COMPONENT TO THEM BUT THE HORSE IS AS MUCH A TEACHER AS DICK

MS RUDNER IS A FREELANCE WRITER IN BOZEMAN MONT 9309010055 930901
BUSINESS BRIEF LONE STAR TECHNOLOGIES INC GROUP INCLUDING ROBERT BASS
 LIFTS STAKE IN FIRM TO 66

ALPINE CAPITAL LP A GROUP THAT INCLUDES FORT WORTH TEXAS INVESTOR
ROBERT BASS HAS ACCUMULATED A 66 STAKE IN LONE STAR TECHNOLOGIES INC
ACCORDING TO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION

ALPINE CAPITAL WHICH LISTED MR BASS AS THE FILER ON THE SEC DOCUMENTS
SAID IT PURCHASED ABOUT 206000 COMMON SHARES IN THE STEEL MANUFACTURER FROM
JULY 26 TO AUG 24 FOR 843 TO 930 A SHARE RAISING ITS STAKE FROM 56
THE GROUP NOW HOLDS 135 MILLION COMMON SHARES

IN A PREVIOUS SEC FILING THE GROUP SAID IT HAD NO EXTRAORDINARY PLANS FOR
LONE STAR AND THAT ITS PURCHASES WERE FOR INVESTMENT PURPOSES

LONE STAR AGREED TO SELL ITS THRIFT UNIT AMERICAN FEDERAL BANK EARLIER
THIS YEAR FOR 150 MILLION SHARES IN THE COMPANY HAVE DOUBLED IN PRICE
SINCE THE AGREEMENT FOR THE SALE WAS ANNOUNCED 9309010054 930901
TECHNOLOGY BRIEF HYAL PHARMACEUTICAL CORP FDA CLEARS PAIN TREATMENT 
FOR PHASE THREE LAB TRIALS

HYAL PHARMACEUTICAL CORP SAID IT RECEIVED APPROVAL FROM THE US FOOD AND
DRUG ADMINISTRATION TO BEGIN PHASE THREE CLINICAL TRIALS FOR ITS TOPICAL
PAIN TREATMENT

HYAL SAID THE TESTING WILL TAKE PLACE AT THE ARTHRITIS CENTER IN PHOENIX
ARIZ AND WILL ASSESS THE PRODUCT'S SUCCESS IN TREATING PAIN ASSOCIATED
WITH CHRONIC OSTEOARTHRITIS IT SAID 120 SUBJECTS WILL PARTICIPATE IN THE
DOUBLEBLIND STUDY IN WHICH SCIENTISTS AND PATIENTS AREN'T TOLD WHICH
PATIENTS RECEIVE THE NEW TREATMENT AND WHICH RECEIVE A PLACEBO TREATMENT

MISSISSAUGA ONTARIOBASED HYAL IS CONDUCTING PHASE THREE TRIALS FOR TWO
OTHER PRODUCTS TREATMENTS FOR BASAL CELL CARCINOMA AND MODERATETOSEVERE
PAIN 9309010053 930901 WHY GOVERNMENT NUMBERS DON'T ADD UP  BY
MARTIN FLEMING

CRITICS OF GOVERNMENT SPENDING ARE FOND OF USING FEDERAL ECONOMIC STATISTICS
TO BUTTRESS THEIR ARGUMENTS BUT IN ONE OF THE IRONIES FOR WHICH THE DEBATE
IS FAMOUS ONE OF THE FEW PROGRAMS TO BE PARED TO THE BONE HAS BEEN THE DATA
COLLECTION SYSTEM ITSELF THIS HAS LED OVER THE PAST DECADE TO AN ARCHAIC
SYSTEM OF STATISTICS COLLECTION THAT OFTEN RESULTS IN FLAWED ANALYSES

YESTERDAY'S RELEASE OF REVISED 1992 GROSS DOMESTIC PRODUCT DATA BY THE
COMMERCE DEPARTMENT HIGHLIGHTS THE NEED FOR MORE ACCURATE REPORTING OF
ECONOMIC STATISTICS BY THE FEDERAL GOVERNMENT INDEED THESE REVISIONS SHOW
THAT THE SLOWGROWTH ASSUMPTIONS BEHIND THE CLINTON ECONOMIC POLICY WERE
FUNDAMENTALLY FLAWED

RECENT RESEARCH BY THE STATISTICS COMMITTEE OF THE NATIONAL ASSOCIATION OF
BUSINESS ECONOMISTS NABE SHOWS THAT THE MISESTIMATION OF GROWTH HAS
FOLLOWED A COUNTERCYCLICAL PATTERN DATING BACK AS FAR AS EARLY 1986 AND
CONTINUING IN 1992 IN 198688 WHEN GROWTH WAS RELATIVELY STRONG ECONOMIC
ACTIVITY WAS UNDERESTIMATED IN 198991 WHEN GROWTH WAS SLOWING AND THEN
DECLINING ECONOMIC ACTIVITY WAS OVERESTIMATED WE NOW KNOW THAT GROWTH WAS
UNDERESTIMATED IN 1992

NABE RESEARCH ALSO SHOWS THAT MISESTIMATION OF GDP HAS CAUSED SERIOUS
PROBLEMS IN FORECASTING ECONOMIC EVENTS THESE FORECASTS AND THE ECONOMETRIC
MODELS THAT PRODUCE THEM DRIVE BILLIONS OF DOLLARS OF INVESTMENT ACTIVITY 
MAKING FORECAST ACCURACY A MAJOR CONCERN FOR WALL STREET'S STOCK AND BOND
SPECIALISTS

OVER TWOTHIRDS OF THE ERRORS OBSERVED IN ECONOMIC FORECASTS PUBLISHED
BETWEEN 1986 AND 1991 CAN BE ATTRIBUTED TO MISESTIMATION OF THE DATA
INDEED THE LONGER THE RANGE OF THE FORECAST THE GREATER THE PROPORTION OF
THE FORECAST ERROR ATTRIBUTABLE TO DATA PROBLEMS NABE RESEARCH ALSO SHOWS
THAT THE FORECASTS WE REVIEWED WITH TIME HORIZONS OF LONGER THAN ONE QUARTER
PERFORM ABOUT THE SAME AS MAKING A NAIVE FORECAST THAT GDP WILL SHOW NO
CHANGE OVER THE FORECAST HORIZON

THESE DATA PROBLEMS ARE NOT RANDOM EVENTS NOR ARE THEY THE RESULT OF
MALFEASANCE OR INCOMPETENCE THE PROBLEM IS THAT GOVERNMENT STATISTICAL
PROGRAMS HAVE BEEN DRAMATICALLY UNDERFUNDED OVER THE PAST DECADE

THERE IS NO DIFFICULTY IN FINDING PLACES FOR IMPROVEMENT THE GDP REVISIONS
REPORTED YESTERDAY FOLLOW A PATTERN SIMILAR TO THOSE OF THE PAST SEVERAL
YEARS INDEED 75 OF THE REVISIONS TO THE DATA FROM 199092 WERE IN THREE
AREAS PRODUCERS' DURABLE EQUIPMENT PERSONAL CONSUMPTION EXPENDITURES AND
STATE AND LOCAL GOVERNMENT EXPENDITURES THE LATTER TWO OF THESE NOW ACCOUNT
FOR 51 OF GDP UP FROM 35 IN 1960 AND THE METHOD USED TO COLLECT THESE
DATA REMAIN RELATIVELY PRIMITIVE AND UNCHANGED AS A RESULT APPROXIMATELY
60 OF THE SOURCE DATA FOR THE QUARTERLY GDP ESTIMATE ARE LACKING EITHER IN
WHOLE OR IN PART

HAVING JUST COMPLETED A LONG AND ARDUOUS DEBATE OVER A DEFICIT REDUCTION
PACKAGE AND AN ECONOMIC STIMULUS PROGRAM THE CLINTON ADMINISTRATION WOULD
BE WISE TO SEEK INCREASED FUNDING FOR THE COLLECTION OF ECONOMIC STATISTICS
SUCH AS 100 MILLION OVER FOUR YEARS SUCH A MOVE COULD BE AMONG A HANDFUL
OF ITEMS THAT IF SUCCESSFUL COULD PREVENT THE CLINTON ADMINISTRATION FROM
GOING THE WAY OF THE BUSH ADMINISTRATION

MR FLEMING IS CHAIRMAN OF THE STATISTICS COMMITTEE OF THE NATIONAL
ASSOCIATION OF BUSINESS ECONOMISTS AND VICE PRESIDENT OF CAHNERS PUBLISHING
IN NEWTON MASS 9309010052 930901 ECONOMY CONSUMER CONFIDENCE SAGGED
IN AUGUST WIPING OUT GAINS SINCE CLINTON ELECTION  BY DAVID
WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON CONSUMERS ARE STILL IN A FUNK THE LATEST READINGS OF CONSUMER
CONFIDENCE BY THE CONFERENCE BOARD SUGGEST THE BUSINESS RESEARCH
ORGANIZATION'S INDEX OF CONSUMER CONFIDENCE DIPPED A BIT MORE IN AUGUST

BOTH THE CONFERENCE BOARD MEASURE AND A SIMILAR ONE MAINTAINED BY THE
UNIVERSITY OF MICHIGAN ROSE SHARPLY AROUND THE TIME OF PRESIDENT CLINTON'S
ELECTION AMID SIGNS THAT THE ECONOMY WAS PERKING UP BOTH MEASURES HAVE
SLUMPED SINCE

THE CONFERENCE BOARD SAID ITS INDEX SLIPPED TO 590 FROM 592 IN AUGUST AND
HAS NOW GIVEN UP ALL THE GAINS IT MADE LATE LAST YEAR ACCORDING TO
SUBSCRIBERS THE MICHIGAN INDEX ROSE SLIGHTLY TO 773 IN AUGUST FROM 770
THE MONTH BEFORE

CONSUMERS ARE IN NO BETTER SPIRITS THAN THEY WERE LAST YEAR AT THIS TIME
SAID FABIAN LINDEN DIRECTOR OF THE BOARD'S CONSUMER RESEARCH CENTER THERE
IS FAINT HOPE IN THE RECENT CONSUMER CONFIDENCE READINGS THAT A SIGNIFICANT
ACCELERATION IN THE NATION'S ECONOMIC GROWTH RATE IS IMMINENT

THE CONFERENCE BOARD SURVEY OF 5000 FAMILIES WAS CONDUCTED DURING THE FIRST
THREE WEEKS OF AUGUST SO IT GIVES LITTLE EVIDENCE FOR THE THEORY ADVANCED
BY SOME ANALYSTS THAT UNCERTAINTY OVER THE TAX BILL WAS DEPRESSING CONSUMER
AND BUSINESS SPIRITS DONALD HILTY CORPORATE ECONOMIST AT CHRYSLER CORP
SUGGESTED YESTERDAY THAT WORRIES ABOUT THE IMPACT OF THE TAX BILL HAVE NOW
BEEN REPLACED BY FEARS ABOUT THE PRESIDENT'S HEALTHCARE INITIATIVE MR
LINDEN HOWEVER SAYS CONSUMER ATTITUDES PRIMARILY REFLECT UNDERSTANDABLE
WORRIES ABOUT THE JOB MARKET RATHER THAN THE LATEST GOINGSON IN WASHINGTON

SOME ECONOMISTS QUESTION THE SIGNIFICANCE OF THE CONSUMER SENTIMENT MEASURES
IN PREDICTING THE COURSE OF THE ECONOMY I DON'T PUT A LOT OF STOCK IN THE
CONSUMER CONFIDENCE POLLS SAID ALAN BLINDER A MEMBER OF PRESIDENT
CLINTON'S COUNCIL OF ECONOMIC ADVISERS GROWTH IN HOUSEHOLD INCOMES AND
INFLATION ARE FAR MORE IMPORTANT DETERMINANTS OF CONSUMER SPENDING HE SAYS

ERIC LEEPER AN ECONOMIST AT THE ATLANTA FEDERAL RESERVE BANK SAYS HIS
RESEARCH SHOWS THAT THE RISING STOCK AND BOND MARKETS ARE A BETTER PREDICTOR
THAN THE SAGGING CONSUMER CONFIDENCE POLLS PEOPLE ARE PUTTING REAL MONEY
ON THE LINE IN FINANCIAL MARKETS HE SAYS THEY'RE PUTTING DIDDLY ON THE
LINE WHEN THEY SAY WHAT THEY FEEL

STILL THE CONSUMER CONFIDENCE MEASURES DO HAVE A LOYAL FOLLOWING
CHRYSLER'S MR HILTY SINGLES OUT SAGGING CONSUMER SPIRITS AS THE BIGGEST
REASON AUTO SALES HAVEN'T BEEN STRONGER EVERYTHING IS GREEN EXCEPT
CONSUMER ATTITUDES HE SAYS MEASURED BY INCOME EMPLOYMENT AND DEBT
BURDENS CONSUMERS' ABILITY TO BUY NEW CARS IS UP BUT THEIR WILLINGNESS TO
BUY MEASURED BY THE VARIOUS SURVEYS IS DOWN

THE CONFERENCE BOARD INDEX PEAKED IN JANUARY AT 787 THE INDEX WHICH
REFLECTS ATTITUDES ABOUT THE PRESENT AND THE NEAR FUTURE IS CONSTRUCTED
WITH 1985 CONFIDENCE LEVELS EQUAL TO 100

OVER THE PAST YEAR CONSUMER ATTITUDES TOWARD CURRENT GENERAL BUSINESS
CONDITIONS HAVE IMPROVED BUT EXPECTATIONS ABOUT THE FUTURE SIX MONTHS
AHEAD HAVE DETERIORATED MARKEDLY THIS ISN'T UNUSUAL WHEN CONDITIONS ARE
LOUSY CONSUMERS TEND TO SAY THAT THE FUTURE MUST BE BRIGHTER MR LINDEN
SAID WHEN THE ECONOMY IMPROVES AS IT HAS THE CONSUMER OUTLOOK FOR THE
FUTURE TENDS TO BE LESS ROSY

MR LINDEN SAYS THAT CONSUMER EXPECTATIONS ABOUT THE FUTURE WHICH ARE
GLOOMY ARE A KEY TO FORECASTING THE PATH OF THE OVERALL ECONOMY BUT ADRIAN
THROOP AN ECONOMIST AT THE SAN FRANCISCO FED FINDS THAT ATTITUDES TOWARD
CURRENT ECONOMIC CONDITIONS WHICH HAVE BEEN IMPROVING TEND TO FORESHADOW
THE PATH OF CONSUMER PURCHASES OF DURABLE GOODS SUCH AS AUTOS AND
APPLIANCES

RECENT SURVEYS OF BUSINESS CONFIDENCE ARE ALSO WORRISOME A NEW ONE BY THE
NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS FINDS THAT A SPURT OF
CONFIDENCE SPOTTED EARLIER IN THE YEAR HAS DISSIPATED AND A CONFIDENCE
INDEX BASED ON A MONTHLY SURVEY OF MANUFACTURERS BY CAHNERS PUBLISHING CO
HAS BEEN RELATIVELY FLAT FOR THE PAST FOUR MONTHS 9309010051 930901
INTERNATIONAL BRIEF HSBC HOLDINGS PLC PROFIT MORE THAN DOUBLED IN
1ST HALF AT BANK CONCERN

HSBC HOLDINGS PLC REPORTED STRONG PROFIT GROWTH FOR THE FIRST HALF CALMING
FEARS THAT IT WOULD DISAPPOINT THE HONG KONG MARKET

THE BANK HOLDING COMPANY WHICH OPERATES OUT OF LONDON AND HONG KONG SAID
NET INCOME IN THE FIRST SIX MONTHS MORE THAN DOUBLED TO 831 MILLION 124
BILLION FROM 341 MILLION A YEAR EARLIER PROFIT AT HONGKONG BANK THE
COMPANY'S LARGEST SUBSIDIARY ROSE 57 TO HK637 BILLION US822 MILLION
FROM HK406 BILLION

HSBC CHAIRMAN WILLIAM PURVES CALLED THE FIRSTHALF RESULTS ENCOURAGING AND
SAID HE LOOKS FORWARD TO A SATISFACTORY OUTCOME FOR THE YEAR AS A WHOLE

ONE OF THE BANK'S STRONGEST PERFORMANCES CAME IN ITS GLOBAL TREASURY
DIVISION WHICH RACKED UP IMPRESSIVE PROFITS TRADING BONDS AND OTHER
INTERESTBEARING INSTRUMENTS MR PURVES SAID THE GROUP'S IMPROVED TRADING
PERFORMANCE WAS LARGELY DUE TO BENEFITS REALIZED BY THE MERGER OF ITS
HONGKONG BANK AND MIDLAND DEALING CENTERS IN LONDON NEW YORK AND TOKYO

ANOTHER BRIGHT SPOT WAS A SHARP DROP IN PROVISIONS FOR DOUBTFUL DEBTS BY THE
COMPANY'S HONGKONG BANK SUBSIDIARY 9309010050 930901 INTERNATIONAL BRIEF
 CS HOLDING FINANCIAL GROUP REPORTS NET JUMPED 65 IN FIRST HALF

CS HOLDING OF ZURICH REPORTED THAT FIRSTHALF EARNINGS JUMPED 65 DESPITE A
HIGHERTHANEXPECTED INCREASE IN PROVISIONS FOR BAD DEBTS

NET INCOME ROSE TO 882 MILLION SWISS FRANCS 599 MILLION FROM 534 MILLION
FRANCS IN THE YEAREARLIER HALF THE GROUP CALLED THE LATEST RESULT HIGHLY
GRATIFYING AND PREDICTED FULLYEAR RESULTS WOULD BE VERY GOOD

CHAIRMAN RAINER E GUT HOWEVER SAID THAT CREDIT RISKS REMAINED HIGH
PRIMARILY BECAUSE OF A PROLONGED RECESSION IN SWITZERLAND THE GROUP'S HOME
BASE

CS HOLDING A GLOBAL FINANCIALSERVICES GROUP EMBRACES CREDIT SUISSE ONE
OF SWITZERLAND'S LEADING BANKS THE INTERNATIONAL INVESTMENT HOUSE CS FIRST
BOSTON GROUP INC AND LEU HOLDING AG WHICH INCLUDES SEVERAL MEDIUMSIZED
AND SMALLER SWISS BANKS THIS YEAR CS HOLDING TOOK OVER SWITZERLAND'S
FIFTHLARGEST BANK SWISS VOLKSBANK WHICH IS INCLUDED IN THE GROUP'S
RESULTS FOR THE FIRST TIME THE COMPANY SAID ALL OF THE DIVISIONS
CONTRIBUTED TO THE IMPROVED RESULTS 9309010049 930901 BUSINESS BRIEF 
CENTIGRAM COMMUNICATIONS CORP FIRM PROJECTS 34 INCREASE IN FISCAL
FOURTHPERIOD NET

CENTIGRAM COMMUNICATIONS CORP SAID IT EXPECTS FISCAL FOURTHQUARTER
EARNINGS TO RISE 34 TO AROUND 14 MILLION AMID SURGING DEMAND FOR ITS
VOICEPROCESSING GEAR

THE SAN JOSE CALIF COMPANY IS A SMALL PLAYER IN A FASTGROWING MARKET FOR
EQUIPMENT THAT ALLOWS USERS TO RECEIVE SEND AND MANIPULATE MANY TYPES OF
MESSAGES USING TELEPHONES THESE INCLUDE ELECTRONIC MAIL COMPUTER DATA
FAXES AND VOICE MESSAGES

GEORGE SOLLMAN CENTIGRAM'S CHIEF EXECUTIVE SAID HE FEELS GOOD ABOUT
ANALYSTS' EARNINGS PROJECTIONS FOR THE QUARTER WHICH ENDS OCT 2 EQUAL TO
27 CENTS A SHARE IN THE YEAREARLIER PERIOD CENTIGRAM POSTED NET OF 107
MILLION OR 23 CENTS A SHARE SALES ARE EXPECTED TO RISE BY ABOUT 33 TO
ALMOST 17 MILLION FROM 126 MILLION

FOR ALL OF FISCAL 1993 THE COMPANY IS EXPECTED TO EARN 49 MILLION OR
ABOUT 93 CENTS A SHARE ON SALES OF ABOUT 60 MILLION IN FISCAL 1992 IT
EARNED 23 MILLION OR 49 CENTS A SHARE ON REVENUE OF 446 MILLION
9309010048 930901 INTERNATIONAL BRIEF TELEFONICA DE ESPANA GROUP
PROFIT INCREASED 25 DURING THE FIRST SIX MONTHS

SPAIN'S STATERUN TELECOMMUNICATIONS MONOPOLY TELEFONICA DE ESPANA SAID
CONSOLIDATED PROFIT ROSE 25 TO 4969 BILLION PESETAS 367 MILLION IN THE
FIRST SIX MONTHS OF 1993 FROM 4846 BILLION PESETAS A YEAR EARLIER

CONSOLIDATED REVENUE ROSE 72 TO 63045 BILLION PESETAS FROM 58824 BILLION
PESETAS A YEAR EARLIER OPERATING PROFIT INCREASED 95 TO 18687 BILLION
PESETAS FROM 17072 BILLION PESETAS

CONSOLIDATED OPERATING EXPENSES ROSE 4 TO 30452 BILLION PESETAS IN THE
FIRST HALF FROM 29279 BILLION PESETAS A YEAR EARLIER TELEFONICA SAID

AMORTIZATIONS CLIMBED 12 TO 18665 BILLION PESETAS FROM 16622 BILLION
PESETAS

TELEFONICA SAID FINANCIAL INCOME JUMPED 42 TO 259 BILLION PESETAS FROM
183 BILLION PESETAS A YEAR EARLIER 9309010046 930901 REVIEW & OUTLOOK
EDITORIAL OVER TO YOU BOUTROS

EARLY MONDAY MORNING HIGHLY TRAINED US RANGERS ACTING ON BEHALF OF THE
UN PEACEKEEPING MISSION IN SOMALIA DESCENDED FROM THEIR HELICOPTERS IN A
LIGHTNING STRIKE AGAINST WHAT THEY PRESUMABLY THOUGHT WAS A WARLORD'S
HEADQUARTERS IN MOGADISHU WHAT IT IN FACT TURNED OUT TO BE WAS AN OFFICE OF
YET ANOTHER UN AGENCY THE UN DEVELOPMENT PROGRAM

THIS FIASCO WHICH BRIEFLY TERRORIZED THE UNDP FOLKS SHOWS THAT NOWADAYS
YOU MAY RUN INTO UN PEOPLE UNEXPECTEDLY ALMOST ANYWHERE IN THE THIRD
WORLD IT ALSO SUGGESTS SOME LACK OF COORDINATION AMONG THE UN'S MANY
BRANCHES THE PEACEKEEPER HAND DIDN'T SEEM TO KNOW WHAT THE DEVELOPMENT HAND
WAS DOING OR EVEN WHERE IT WAS DOING IT

INCIDENTS LIKE THIS MAY EXPLAIN WHY WORDS LIKE INEFFICIENT ARE SO OFTEN
LINKED TO THE WORDS UNITED NATIONS THESE DAYS INDEED SOME OF THE UN'S
SEVEREST CRITICS ARE THE PEOPLE WHO SEE ITS RELIEF OPERATIONS UP CLOSE IN
THE TRAGIC CIRCUMSTANCES OF WAR DISEASE AND FAMINE

YET JUST WHEN THE UN'S STRUCTURAL INADEQUACIES ARE BEING MADE MORE
EVIDENT BY ITS EXPANDING PRESENCE IN THE WORLD'S TROUBLE SPOTS SOMETHING
ELSE IS HAPPENING THE CLINTON ADMINISTRATION HAS DECIDED TO DUMP MORE
PROBLEMS OF US FOREIGN POLICY INTO THE LAP OF BOUTROS BOUTROSGHALI

FORMER US AMBASSADOR TO THE UN JEANE KIRKPATRICK WROTE AN ARTICLE FOR
THE LOS ANGELES TIMES SYNDICATE LAST WEEK DEFINING THIS TURN TO
MULTILATERALISM AS THE NEW US FOREIGN POLICY AS THE US TURNS OVER MORE
DECISION MAKING TO THE UN THE UN RELIES MORE ON THE US TO SUPPORT ITS
DECISIONS THE RESULT MS KIRKPATRICK SAYS IS THAT THE VACILLATION AND
STAGNATION INHERENT TO MULTILATERAL ORGANIZATIONS SPILL OVER INTO THE US
GOVERNMENT THE UN'S TRACK RECORD IN BOSNIA ANGOLA CAMBODIA SOMALIA AND
SUDAN HARDLY SEEMS TO JUSTIFY THE CONFIDENCE THE CLINTONITES ARE BESTOWING
ON IT

THE CLINTON FOLKS HAVE AN ANSWER TO THESE OBJECTIONS THEY ARE PROPOSING THE
APPOINTMENT OF A UN INSPECTOR GENERAL WHO CAN VISIT THE FARFLUNG OFFICES
OF THIS VAST ORGANIZATION UNCOVER CORRUPTION AND INCOMPETENCE AND CLEAN
THINGS UP A DECISION ON THIS IS EXPECTED WHEN THE GENERAL ASSEMBLY CONVENES
NEXT MONTH IN THE MEANTIME THE UN IN AN EFFORT TO KEEP THE US HAPPY
LAST WEEK APPOINTED ONE OF ITS RETIRED OFFICIALS MOHAMED ALY NIAZI AS
SENIOR INVESTIGATOR TO SEARCH OUT FRAUD WASTE AND CORRUPTION

ACCORDING TO PRESS REPORTS MR NIAZI IS A PERSONAL FRIEND OF MR
BOUTROSGHALI HE WILL HEAD A STAFF OF 90 IF THESE PEOPLE ARE BEING
RECYCLED FROM THE EXISTING POOL OF EMPLOYEES WE WONDER HOW MUCH ENERGY
THEY'LL APPLY TO ROUSTING THEIR COLLEAGUES

BUT EVEN IF AN INSPECTOR GENERAL SHOULD HAVE SOME LUCK IN CLEANING UP THE
UN HOWEVER UNLIKELY NONE OF THIS DEALS WITH MORE FUNDAMENTAL
PROBLEMS UN PEACEKEEPING FOR EXAMPLE APPARENTLY PRESUMES THAT UNARMED
TROOPS CAN WALK INTO WAR ZONES AND BY THEIR MERE PRESENCE BRING ABOUT PEACE
THAT DOESN'T SEEM TO BE WORKING THE RELIEF EFFORTS MEANWHILE GIVE THE
WORLD THE IMPRESSION THAT MERELY GETTING FOOD AND MEDICINE TO SUFFERING
PEOPLE SOLVES THE PROBLEM IT PROVIDES RELIEF CERTAINLY AND THERE IS MUCH TO
BE SAID FOR THAT BUT IT DOES NOT SOLVE PROBLEMS

THE CONTINUING RECORD OF DIFFICULTIES WITH THESE UN EFFORTS RAISES THE
QUESTION OF WHY THE CLINTON ADMINISTRATION IS INVESTING SO MUCH CAPITAL IN
THE KINDS OF DISJOINTED OPERATIONS THAT CAUSED ELITE US RANGERS SO MUCH
EMBARRASSMENT IN MOGADISHU MONDAY 9309010045 930901 BUSINESS BRIEF 
EXECUTIVE LIFE INSURANCE CO CALIFORNIA COURT OF APPEALS GIVES GOAHEAD
TO BAILOUT

REJECTING A LASTMINUTE APPEAL THE CALIFORNIA COURT OF APPEALS GAVE THE
GREEN LIGHT TO A BAILOUT PLAN FOR THE FAILED EXECUTIVE LIFE INSURANCE CO

TRUSTEES FOR 165 BILLION OF MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE
SOCALLED MUNIGICS A FORM OF GUARANTEED INVESTMENT CONTRACT 
UNSUCCESSFULLY SOUGHT AN EMERGENCY ORDER FROM THE APPEALS COURT TO BLOCK A
LOWERCOURT RULING FROM TAKING EFFECT TODAY CRITICS OF THE BAILOUT PLAN
WHICH TRANSFERS MORE THAN 7 BILLION IN UNDERWRITING BY EXECUTIVE LIFE TO A
NEW FRENCHCONTROLLED COMPANY ARE LIKELY TO CONTINUE THEIR FIGHT THROUGH
APPEALS BUT YESTERDAY'S MOVE MEANS THE TRANSFER WILL TAKE PLACE AS ORDERED
BY THE LOWER COURT 9309010044 930901 YIELDS ON BANK CDS MIXED IN LATEST
WEEK

NEW YORK YIELDS ON BANK CERTIFICATES OF DEPOSIT WERE MIXED IN THE WEEK
ENDED YESTERDAY

THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS AT MAJOR
BANKS FOR INSTANCE REMAINED AT 273 ACCORDING TO A SURVEY BY BANXQUOTE
MONEY MARKETS THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE
YIELD ON BANKSOLD FIVEYEAR SAVINGS CDS SLID TO 465 FROM 472

ON LARGEDENOMINATION JUMBO CDS AT MAJOR BANKS WHICH TYPICALLY REQUIRE
DEPOSITS OF 95000 AND UP THE AVERAGE YIELD EASED TO 278 FROM 279 ON
SIXMONTH CERTIFICATES BANXQUOTE SAID THE AVERAGE YIELD ON FIVEYEAR JUMBOS
DROPPED TO 470 FROM 479 9309010043 930901 BUSINESS BRIEF 
HYDROQUEBEC ISSUES AN IMPACT STATEMENT ON HUGE POWER PLAN

MONTREAL HYDROQUEBEC RELEASED A 5000PAGE ENVIRONMENTALIMPACT
STATEMENT FOR ITS MASSIVE GREAT WHALE HYDROELECTRIC POWER PROJECT IN
NORTHERN QUEBEC OPENING A NEW PHASE IN THE PUBLIC REVIEW OF THE
CONTROVERSIAL PLAN

THE STUDY CONCLUDES THAT THE PROJECT WHICH WOULD FLOOD 673 SQUARE MILES
NEAR HUDSON BAY WOULD HAVE GENERALLY MODERATE AND LOCALIZED IMPACTS AND
WOULDN'T DISPLACE ANY NATIVE CANADIAN COMMUNITIES

HYDROQUEBEC SAID THE 3210MEGAWATT COMPLEX WILL BE NEEDED TO MEET QUEBEC'S
ENERGY NEEDS BEYOND THE YEAR 2000 THE UTILITY WHICH IS OWNED BY THE QUEBEC
GOVERNMENT ESTIMATES THE PROJECT'S COST AT 68 BILLION CANADIAN DOLLARS
US52 BILLION IN 1992 DOLLARS OR C133 BILLION IN CURRENT DOLLARS
PLANS CALL FOR THE COMPLEX TO BEGIN OPERATING BETWEEN THE YEARS 2000 AND
2005 A HYDROQUEBEC SPOKESMAN SAID THE PROJECT ISN'T TIED TO EXPORTS OF
ELECTRICITY TO THE US

AMONG THE REPORT'S CONCLUSIONS THE PROJECT WON'T ENDANGER ANY SPECIES OR
THE SIZE OF ANIMAL AND VEGETABLE POPULATIONS OF THE REGION PROBLEMS CAUSED
BY INCREASED MERCURY LEVELS IN FLOODED AREAS WOULD BE TEMPORARY AND NATIVE
COMMUNITIES WOULD BE ABLE TO SAFELY MAINTAIN THEIR PRESENT DIET IF CERTAIN
PRECAUTIONS ARE TAKEN SUCH AS LIMITING CONSUMPTION OF FISH FROM THE
RESERVOIRS

THE ENVIRONMENTAL STATEMENT WILL BE REVIEWED BY FIVE CANADIAN AND QUEBEC
GOVERNMENT PANELS WITH PARTICIPATION BY REPRESENTATIVES OF NATIVE
COMMUNITIES IF THE AUTHORITIES FIND THE REPORT CONFORMS TO GUIDELINES SET
DOWN LAST YEAR PUBLIC HEARINGS WILL BE SCHEDULED 9309010042 930901
CREDIT RATINGS MOODY'S CUTS RATING ON HARSCO DEBT CITES MULTISERV
ACQUISITION

NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE LONGTERM DEBT
RATINGS OF HARSCO CORP TO REFLECT THE FINANCIAL IMPACT OF THE COMPANY'S
JUSTCOMPLETED 385 MILLION ACQUISITION OF MULTISERV INTERNATIONAL NV

HARSCO'S SENIOR DEBT RATING WAS REDUCED TO BAA1 FROM A3 AND ITS SHELF
REGISTRATION TO PBAA1 FROM PA3 ABOUT 100 MILLION OF LONGTERM DEBT
IS AFFECTED

THE RATING SERVICE SAID THE ACQUISITION WOULD RESULT IN SIGNIFICANTLY HIGHER
DEBT LEVELS AND REDUCED FINANCIAL FLEXIBILITY FOR HARSCO A HARRISBURG PA
INDUSTRIAL CONCERN IN ADDITION MOODY'S SAID CONTINUING WEAKNESS IN EUROPE
 MULTISERV'S PRINCIPAL MARKET AND THE EXPECTED ONETIME COSTS
ASSOCIATED WITH THE INTEGRATION OF MULTISERV WOULD PROBABLY PROLONG THE
REPAYMENT PERIOD OF THE ACQUISITION DEBT

HOWEVER MOODY'S SAID IT RECOGNIZED THE OPERATING SYNERGIES OF THE
ACQUISITION HARSCO MAKES AND MARKETS A WIDERANGE OF GOODS AND SERVICES
PRIMARILY FOR INDUSTRIAL COMMERCIAL DEFENSE AND CONSTRUCTION
APPLICATIONS

HARSCO CHIEF FINANCIAL OFFICER LEONARD CAMPANARO SAID THE COMPANY WAS
DISAPPOINTED BY THE DOWNGRADE SAYING IT ENVISIONED CONTINUING TO REAP
STRONG CASH FLOWS HARSCO ANTICIPATES THE FIRM'S BALANCE SHEET RETURNING
WITHIN FOUR YEARS FROM ITS DEBTLEVEL THAT NOW IS 46 OF ITS CAPITALIZATION
TO THE PREACQUISITION LEVEL OF 21 9309010041 930901 ONEOK AGREES TO PAY
 55 MILLION TO SETTLE A FOURYEAROLD SUIT

TULSA OKLA AP ONEOK INC SAID IT AGREED TO A 55 MILLION SETTLEMENT
IN A CLASSACTION LAWSUIT ALLEGING THE ENERGY COMPANY FAILED TO TELL
STOCKHOLDERS ENOUGH ABOUT ITS SUPPLIER AGREEMENTS

RAYMOND SNYDER A NEW YORK STOCKHOLDER FILED THE LAWSUIT FOUR YEARS AGO IN
RESPONSE TO ONEOK'S AGREEMENT TO PAY AN ENERGY SUPPLIER FOREST OIL CORP A
MINIMUM AMOUNT EVEN IF THE PRODUCT WASN'T DELIVERED

ONEOK SAID IT MAINTAINS THAT IT DISCLOSED ALL IMPORTANT DEVELOPMENTS AS
THEY OCCURRED ADVERSE OR NOT IN FULL COMPLIANCE WITH THE APPLICABLE
LAW AND REGULATIONS THAT GOVERN IT

ONEOK DIRECTORS AND AUDITORS KPMG PEAT MARWICK ALSO WERE DEFENDANTS IN THE
LAWSUIT ONEOK SAID THE SETTLEMENT STILL SUBJECT TO FEDERAL COURT APPROVAL
LARGELY WILL BE COVERED BY INSURANCE AND WON'T HURT EARNINGS

ONEOK STOCK FELL 125 CENTS TO 2150 IN NEW YORK STOCK EXCHANGE COMPOSITE
TRADING YESTERDAY

TULSABASED ONEOK IS THE PARENT COMPANY OF OKLAHOMA NATURAL GAS
9309010039 930901 APOLLO SKI'S VAIL UNIT AGREES TO PURCHASE A RESORT
IN COLORADO

VAIL COLO VAIL ASSOCIATES INC SAID IT AGREED TO BUY ARROWHEAD AT VAIL
A CLOSELY HELD SKI RESORT WEST OF THE COMPANY'S BEAVER CREEK RESORT

TERMS OF THE AGREEMENT WEREN'T DISCLOSED THE TRANSACTION IS EXPECTED TO BE
COMPLETED EARLY IN 1994 THE TWO RESORTS WILL OPERATE INDEPENDENTLY THROUGH
THE 19931994 SKI SEASON

BUT VAIL INTENDS TO CONNECT THE RESORTS BY ADDING A THIRD RESIDENTIAL SKI
VILLAGE AND LIFTS IN BACHELOR GULCH WHICH LIES BETWEEN ARROWHEAD AND BEAVER
CREEK IT WILL CREATE MORE OF A EUROPEAN EXPERIENCE WHERE YOU CAN SKI FROM
VILLAGE TO VILLAGE SAID VAIL PRESIDENT ANDY DALY THE RESORTS ARE ABOUT
120 MILES OUTSIDE DENVER

THE AGREEMENT MARKS THE THIRD MAJOR SKI RESORT PURCHASE ANNOUNCEMENT IN
COLORADO THIS YEAR INDICATING A CONSOLIDATION OF RESORT OWNERSHIP RALSTON
PURINA CO ADDED BRECKENRIDGE SKI RESORT TO ITS KEYSTONE AND ARAPAHOE BASIN
SKI AREA HOLDINGS EARLY IN THE SUMMER BRECKENRIDGE WAS HELD BY VICTORIA
USA INC A JAPANESE SPORTING GOODS CONCERN ALSO ASPEN SKIING CO
AGREED TO PURCHASE NEARBY ASPEN HIGHLANDS SKI RESORT FROM HARVARD UNIVERSITY
IN JULY ASPEN OWNS ASPEN SNOWMASS AND TIEHACK/BUTTERMILK SKI RESORTS

VAIL ASSOCIATES IS OWNED BY GILLETT HOLDINGS INC WHICH IS A UNIT OF APOLLO
SKI PARTNERS LTD AN AFFILIATE OF APOLLO ADVISORS LP OF NEW YORK
9309010038 930901 LETTERS TO THE EDITOR FMLA POWER TO THE EMPLOYEES

GARY KLOTZ'S DIATRIBE AGAINST THE FAMILY AND MEDICAL LEAVE ACT THE HIGH
COST OF EMPLOYEES' RIGHTS' EDITORIAL PAGE AUG 3 IS REPLETE WITH
UNSUBSTANTIATED AND HIGHLY QUESTIONABLE ASSERTIONS AND PREDICTIONS REGARDING
THE LIKELY EFFECTS OF THE FMLA AS MR KLOTZ SEES IT EMPLOYER COSTS WILL
SOAR LAWSUITS WILL FLOOD THE COURTS AND COMPETITIVENESS AND EFFICIENCY
WILL DECLINE OF COURSE MR KLOTZ NEGLECTED TO MENTION THAT THESE DIRE
CONSEQUENCES HAVE NOT MATERIALIZED WHEN EMPLOYERS THEMSELVES HAVE CHOSEN TO
OFFER FAMILY LEAVE BENEFITS OR WHERE STATES HAVE MANDATED LEAVE POLICIES

BUT MORE TROUBLING IS THE UNDERLYING CURRENT OF MR KLOTZ'S ESSAY HIS
FANCIFUL VIEW OF THE SOCIOLOGY OF POWER IN THE EMPLOYMENT RELATIONSHIP IN
THE US THE FMLA HE SAYS IS PART OF A TREND TOWARD MORE EMPLOYEE RIGHTS
AT THE EXPENSE OF THE EMPLOYER THE ACT GIVES EMPLOYERS NO PROTECTION FROM
THEIR EXPOSURE TO LITIGATION WHY EMPLOYERS CAN'T EVEN USE THEIR OWN HIRED
MEDICAL GUNS TO RENDER SECOND OPINIONS DOES MR KLOTZ SINCERELY BELIEVE
THAT THE POWER NOT TO MENTION VIABILITY OF EMPLOYERS WHO MAINTAIN THE
RIGHT TO FIREATWILL IS THREATENED HERE

FAMILY LEAVE WITHOUT FEAR OF LOSS OF JOB IS A RIGHT THAT AMERICANS BELIEVE
WORKERS OUGHT TO HAVE THE FMLA IS A MECHANISM FOR ENSURING THAT RIGHT IN
THE CONTEXT OF AN EMPLOYMENT SYSTEM WHERE POWER IS ANYTHING BUT BALANCED
YET MR KLOTZ'S ANALYSIS SPEAKS ONLY TO EXAGGERATED COSTS INCURRED BY THE
POWERFUL PARTIES IN THIS EQUATION WITH UTTERLY NO REGARD FOR THE ACT'S
POSITIVE EFFECTS ON THE LIVES OF RELATIVELY POWERLESS WORKERS AND THEIR
FAMILIES IN MR KLOTZ'S WORLD EMPLOYER INTERESTS ALONE DETERMINE
EMPLOYMENT LAWS AND POLICIES WHICH IS WHY OF COURSE WE NEED LAWS LIKE
THE FMLA IN THE FIRST PLACE

MR KLOTZ DOES NOT DO JUSTICE TO THE COSTS IMPOSED BY THE FMLA UNDER IT
EMPLOYEES ARE ENTITLED TO TAKE INTERMITTENT LEAVE BECAUSE OF A CHRONIC
MEDICAL CONDITION OR TO CARE FOR A PARENT OR CHILD WITH A CHRONIC MEDICAL
CONDITION THESE SPORADIC AND UNFORESEEN ABSENCES OF UP TO 480 HOURS PER
YEAR MAY NOT BE COUNTED AS ABSENCES UNDER THE EMPLOYER'S ABSENTEE POLICY
THE POTENTIAL EFFECT ON THE PRODUCTIVITY OF THE AMERICAN WORK FORCE IS
STAGGERING

AT THE END OF THE UNPAID LEAVE OF ABSENCE THE EMPLOYER MUST RETURN THE
EMPLOYEE TO THE SAME OR EQUIVALENT POSITION WITH FULL BENEFITS THE LABOR
DEPARTMENT NOTES THAT THE BENEFIT PLANS OF MANY EMPLOYERS CONTAIN PROVISIONS
SUCH AS WAITING PERIODS OPEN ENROLLMENT PERIODS OR PREEXISTING CONDITION
CLAUSES THAT WOULD PREVENT AN EMPLOYEE WHOSE COVERAGE HAS BEEN DROPPED FROM
IMMEDIATELY BEING REINSTATED WITH FULL COVERAGE IN THESE SITUATIONS THE
DEPARTMENT SUGGESTS THAT THE EMPLOYER MUST PAY THE PREMIUM TO CONTINUE
COVERAGE FOR ALL BENEFITS NOT ONLY HEALTH BUT ALSO LIFE INSURANCE
DISABILITY ETC UNTIL THE EMPLOYEE RETURNS TO WORK IF THE EMPLOYEE
RETURNS TO WORK

FINALLY ONE CAN READILY FORESEE THAT THE CURRENT FMLA IS MERELY A FIRST
STEP TOWARD THE REAL GOAL OF ITS PROPONENTS PAID LEAVE OF ABSENCE
9309010037 930901 BUSINESS BRIEF MARTECH USA INC ADVISER HIRED TO
CONSIDER ALTERNATIVES INCLUDING SALE

MARTECH USA INC SAID IT HIRED AN INVESTMENT COMPANY FIRST BOSTON CORP TO
EXPLORE STRATEGIC ALTERNATIVES FOR MAXIMIZING SHAREHOLDER VALUE INCLUDING
POSSIBLE SALE OF THE ENVIRONMENTAL CLEANUP AND CONSTRUCTION CONCERN

MARTECH OFFICIALS SAID A DECISION HADN'T BEEN MADE WHETHER IT WOULD BE SOLD
A MARTECH SPOKESWOMAN SAID THE COMPANY WANTS TO MAXIMIZE HOLDER VALUE IN
SOME WAY BECAUSE THE STOCK PRICE HAS BEEN STAGNANT AND THE CURRENT STOCK
PRICE DOESN'T REFLECT THE VALUE OF THE COMPANY

THE ANCHORAGE ALASKA COMPANY HAS ABOUT 97 MILLION SHARES OUTSTANDING ITS
SHARES CLOSED AT 8875 UP 150 IN TRADING YESTERDAY ON THE NEW YORK
STOCK EXCHANGE THE COMPANY SAID ITS CURRENT DOMESTIC CONTRACT BACKLOG OF
MORE THAN 150 MILLION IS ITS HIGHEST EVER HAVING INCREASED NEARLY FOURFOLD
OVER THE PAST TWO YEARS

FIRST BOSTON IS A SUBSIDIARY OF CS FIRST BOSTON GROUP INC WHICH IS A UNIT
OF SWISSBASED CS HOLDING 9309010036 930901 RETIREE BENEFITS TO TAKE
BIGGER BITE ON PROFITS  CHANGE IN ACCOUNTING RULE MAY CAUSE A 33
DROP AT BIG FIRMS THIS YEAR  BY LEE BERTON STAFF REPORTER OF THE
WALL STREET JOURNAL

NEW YORK A RETIREE HEALTHBENEFITS ACCOUNTING RULE WILL REDUCE MANY OF
THE BIGGEST US COMPANIES' TOTAL REPORTED PROFITS BY A HIGHERTHANEXPECTED
33 THIS YEAR AND AS MUCH AS 45 NEXT YEAR A SURVEY SHOWS

WILLIAM J FALK DIRECTOR OF THE HEALTHANDWELFARE ACTUARIAL PRACTICE FOR
BENEFITSCONSULTING FIRM TOWERS PERRIN ATTRIBUTED THE BIGGER DRAG ON
PROFITS TO A POOR ECONOMY KEEPING EARNINGS DOWN AND THE LOWEST INTEREST
RATES IN TWO DECADES TOWERS PERRIN SURVEYED 65 OF THE 100 BIGGEST US
COMPANIES THAT REPORTED THE RULE'S IMPACT

PREVIOUSLY BENEFITS CONSULTANTS HAD GENERALLY EXPECTED THAT THE RULE'S
IMPACT WOULD REDUCE THE EARNINGS OF MANY BIG COMPANIES BY 20 TO 30 EACH
YEAR

THE RULE ISSUED IN 1990 BY THE FINANCIAL ACCOUNTING STANDARDS BOARD
REQUIRES COMPANIES TO ACCRUE OR SET UP A RESERVE FOR RETIREES' FUTURE
MEDICAL BENEFITS EACH YEAR IN SWITCHING FROM DEDUCTING MEDICAL COSTS AS
THEY ARE PAID THE COMPANIES MUST ALSO DEDUCT A ONETIME TRANSITION AMOUNT
BASED ON EMPLOYEES' PAST SERVICE COMPANIES COULD ADOPT THE RULE EARLY BUT
MUST BEGIN ACCRUALS IN FISCAL YEARS BEGINNING AFTER LAST DEC 15

MR FALK NOTES THAT LOWER INTEREST RATES ARE FORCING COMPANIES TO SET ASIDE
HIGHER RESERVES BECAUSE INTEREST EARNINGS WON'T CONTRIBUTE AS MUCH TO OFFSET
FUTURE RETIREES' MEDICAL EXPENSES THE GREATER REDUCTIONS TO BE SEEN IN
PROFITS AS A RESULT OF THIS ACCOUNTING CHANGE SURPRISES US AND MAY CAUSE
SOME COMPANIES TO REDUCE THE RETIREE'S MEDICAL BENEFITS EVEN MORE HE SAID

THE SURVEY SHOWS THAT THE ONETIME DEDUCTION TO COVER EMPLOYEES' PAST
SERVICES HAS REDUCED THE TOTAL NET WORTH OF THE 65 COMPANIES BY 103
BILLION OR 20 WITH THOSE IN THE AUTO AND HEAVY MANUFACTURING INDUSTRIES
HIT THE HARDEST FOR EXAMPLE THE NET WORTH OF GENERAL MOTORS CORP WHICH
ADOPTED THE RULE LAST YEAR WAS REDUCED BY MORE THAN 80 TOWERS PERRIN
OBSERVED

OTHER COMPANIES MOST AFFECTED BY THE RULE INCLUDE DUPONT CO CATERPILLAR
INC AND EASTMAN KODAK CO WHILE COMPANIES SUCH AS GENERAL MILLS INC AND
RJR NABISCO HOLDINGS CORP WHICH HAD PREVIOUSLY SET UP RESERVES VOLUNTARILY
FOR RETIREES' MEDICAL BENEFITS HAVE EMERGED RELATIVELY UNSCATHED BY THE
ACCOUNTING RULE

CLEARLY THE RULE HAS HAD A MAJOR IMPACT ON THE FINANCIAL RESULTS OF MOST
OF THE LARGEST US COMPANIES AND A SEVERE IMPACT ON SOME EVEN THOUGH
MANY COMPANIES REDUCED RETIREE MEDICAL BENEFITS IN ANTICIPATION OF THE
RULE MR FALK SAID MOST MEDICALBENEFIT CHANGES SO FAR REQUIRE RETIREES
TO PAY MORE OF THE PREMIUM COSTS HE ADDED

BUT AS COMPANIES BEGIN TO REALIZE THE MAGNITUDE OF THESE CHARGES MANY WILL
REDUCE THEIR MEDICALBENEFIT OBLIGATIONS EVEN MORE HE STATED

TO FUND THESE BENEFITS AND EASE THEIR IMPACT ON PROFITS MANY UTILITIES AND
GOVERNMENT CONTRACTORS ARE SETTING UP SPECIAL TRUSTS MR FALK NOTED THESE
TRUSTS KNOWN AS 401H ACCOUNTS OR VOLUNTARY EMPLOYEES' BENEFICIARY
ASSOCIATIONS GET IMPROVED TAX BENEFITS AND CAN BE ADDED TO THE UTILITIES'
RATE BASE OR THE CONTRACTOR'S ALLOWABLE COSTS HE OBSERVED 9309010035
930901 MARKETING & MEDIA FOX CABLE CHANNEL TO FEATURE CALLERS LIVE
BROADCASTS  BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL
STREET JOURNAL

HOLLYWOOD PROMISING PROGRAMMING THAT DOES NOT INSPIRE CHANNEL SURFING
NEWS CORP'S FOX INC SAID IT WILL MAKE LIVE BROADCASTS AND VIEWER CALLINS
A STAPLE OF ITS NEW BASICCABLE CHANNEL WHICH IT HAS DUBBED FX

THE 24HOUR GENERALENTERTAINMENT CABLE CHANNEL WILL BEGIN MARCH 1 AND
FEATURE ORIGINAL AND ACQUIRED PROGRAMMING SAID ANNE SWEENEY CHAIRMAN AND
CHIEF EXECUTIVE OF FX BORROWING HEAVILY ON A FORMAT THAT HAS WORKED
SUCCESSFULLY FOR MS SWEENEY'S ALMA MATER MTV FOX WILL USE ONAIR HOSTS
AND VIEWER FAX AND PHONE LINES TO MAKE ITS FREE CABLE CHANNEL MORE
INTERACTIVE

IT'S ANTICOUCH POTATO SHE SAID ADDING THAT IN FOX'S MARKETING RESEARCH
STUDIES VIEWERS COMPLAINED THAT MOST CABLE PROGRAMMING LEAVES THEM FEELING
VERY DISCONNECTED FROM TELEVISION

FOX IS STILL BEING TIGHTLIPPED ABOUT SPECIFIC FX PROGRAMS THOUGH IT DID
SAY ONE WILL BE A LIVE BREAKFAST SHOW PRODUCED BY ITS FOX CIRCLE
PRODUCTIONS UNIT AND BROADCAST FROM EITHER NEW YORK OR CHICAGO TEN OTHER
SHOWS ARE CURRENTLY IN DEVELOPMENT MS SWEENEY SAID BUT SHE WOULDN'T GIVE
DETAILS THE CABLE CHANNEL WILL ALSO MINE THE 20TH CENTURY FOX FILM AND TV
LIBRARIES

WHAT ISN'T CLEAR YET IS THE AMOUNT OF PROGRAMMING FX WILL DRAW FROM FOX'S
BROADCASTING NETWORK WE HAVEN'T DETERMINED WHETHER WE WILL HAVE ANY RERUNS
FROM THE NETWORK MS SWEENEY SAID THE BALANCE OF ORIGINAL PROGRAMMING AND
NETWORK RERUNS IS A DELICATE ISSUE FOR FX SINCE FOX'S NETWORK AFFILIATES
HAVE EXPRESSED CONCERN THAT THE CABLE CHANNEL WILL PROVIDE DIRECT
COMPETITION

WHILE OTHER BROADCAST NETWORKS HAVE ALREADY MADE THE FORAY INTO CABLE SUCH
AS GENERAL ELECTRIC CO'S NBC WITH CNBC AND CAPITAL CITIES/ABC INC WITH
ESPN NEVER BEFORE HAS A NETWORK PUT ITSELF IN SUCH DIRECT COMPETITION WITH
ITS BROADCAST AFFILIATES MS SWEENEY STRESSED THAT THE AFFILIATES ARE
STILL ON BOARD WITH THE FOX PLAN NOTING THAT WHILE FX IS A
GENERALENTERTAINMENT CHANNEL IT WILL BE VERY DIFFERENT FROM THE
BROADCAST NETWORK SKEWING SOMEWHAT HIGHER THAN THE FOX NETWORK THE CABLE
CHANNEL WILL TARGET VIEWERS IN THE 18 TO 49YEAROLD AGE RANGE

TO DATE FOX HAS AGREEMENTS WITH 13 CABLE OPERATORS TO CARRY THE CHANNEL TO
SOME 19 MILLION SUBSCRIBERS OR ABOUT 30 OF ALL US HOUSEHOLDS WITH CABLE
AMONG THEM ARE SIX MORE OPERATORS COVERING FOUR MILLION SUBSCRIBERS THAT FOX
ANNOUNCED YESTERDAY NEWHOUSE BROADCASTING CO ADELPHIA COMMUNICATIONS
CORP TKR CABLE CO TRIAX COMMUNICATIONS CORP BRESNAN COMMUNICATIONS AND
BOOTH AMERICAN CO

AS AN INCENTIVE TO GET THE SYSTEMS TO CARRY FX FOX HAS AGREED NOT TO DEMAND
PAYMENTS FROM CABLE OPERATORS FOR BROADCASTING ITS REGULAR NETWORK
PROGRAMMING AS IS ALLOWED UNDER THE 1992 CABLE ACT BUT THE SYSTEMS WILL
PAY FOX A PERHOME FEE FOR THE CABLE CHANNEL UNDER AGREEMENTS MODELED AFTER
FOX'S 25CENTSPERHOME PACT WITH TELECOMMUNICATIONS INC WHICH WAS THE
FIRST OPERATOR TO SIGN ON FOR FX 9309010034 930901 PEPPERAND SALT

TO BE IN THEIR ACCUSTOMED STATIONS

IT USED TO BE THERE NOW IT AIN'T

PLUNGE INTO MAKING BRANDNEW MAPS 9309010033 930901 INDUSTRY FOCUS 
DEREGULATION OF NATURAL GAS TO POSE RISKS FOR UTILITIES  UNBUNDLING'
OF SERVICES WILL END COMPANIES' ONESTOPSHOPPING APPROACH  BY
DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK FOR NATURAL GAS UTILITIES PURCHASING GAS IS LIKE ORDERING A
COLD BEER AT A BAR THAT HAS ONLY ONE BRAND ON TAP LITTLE CHOICE LITTLE
VARIABILITY AND LITTLE RISK

BUT AN IMPENDING REGULATORY ORDER WILL CHANGE EVERYTHING PURCHASING GAS
WILL SOON RESEMBLE FORAGING IN THE FIELDS FOR BARLEY AND HOPS RATHER THAN
THE SIMPLE ORDERING OF A PINT

UNDER FEDERAL ENERGY REGULATORY COMMISSION ORDER 636 WHICH TAKES FULL
EFFECT NOV 1 NATURAL GAS PROCUREMENT WILL BECOME THE RESPONSIBILITY OF
LOCAL UTILITIES WITH PIPELINES REVERTING TO COMMONCARRIER STATUS WITH
THIS UNBUNDLING OF SERVICES UTILITIES MUST DEAL WITH EVERY LEG OF THE
FUEL'S TRAVEL FROM WELLHEAD TO THE CUSTOMER'S DOOR

WITH THE ADDED BURDENS OF THE NEW REGULATIONS WILL COME ADDED RISK IN THE
PAST UTILITIES RELIED ON A REGULATED SYSTEM TO GUARANTEE AN ADEQUATE SUPPLY
FOR THEIR CUSTOMERS NOW WITH THE REGULATORY SAFETY NETS STRIPPED AWAY THE
UTILITIES MUST PURCHASE THE RIGHT AMOUNT OF GAS FROM THE RIGHT PLAYERS

THE NEW PLAYING FIELD AFFECTS CUSTOMERS AS WELL AS BILLIONS OF DOLLARS OF
COSTS SHIFT AROUND UNDER THE NEW SYSTEM INDIVIDUAL HOMEOWNERS AND SMALL
BUSINESSES WILL PAY MORE WHILE BIG INDUSTRIAL CUSTOMERS WILL HAVE THE CLOUT
TO NEGOTIATE LOWER COSTS

PULLING AWAY THE STRINGS OF REGULATION WON'T BE CHEAP MANY PIPELINES
FORCED OUT OF THEIR REGULATED MIDDLEMAN OPERATIONS MUST CANCEL LONGTERM
PURCHASE CONTRACTS THESE TRANSITION COSTS ULTIMATELY WILL BE PASSED ON TO
CONSUMERS

THE INTERSTATE NATURAL GAS ASSOCIATION A TRADE GROUP OF PIPELINES
ESTIMATES THESE COSTS AT ABOUT 44 BILLION OVER THREE YEARS IT PREDICTS
RESIDENTS WILL PAY ABOUT 12 A YEAR FOR THREE YEARS TO COVER THE COSTS OF
DEREGULATION OTHER GROUPS HAVE ESTIMATED THE TRANSITION COULD COST MUCH
MORE WITH A DRAFT REPORT FROM THE GENERAL ACCOUNTING OFFICE SAYING THE
TRANSITION EXPENSES WILL TOP 57 BILLION

MOODY'S INVESTORS SERVICE INC SAYS SHIFTING RISK AND TRANSITION EXPENSES
WILL PUT PRESSURE ON THE GAS UTILITY COMPANIES' DEBT RATINGS MOREOVER
MOODY'S SAID A SURGE IN CUSTOMER BILLS DURING THE 19931994 HEATING SEASON
DUE TO HIGHER GAS PRICES COULD HAVE NEGATIVE POLITICAL CONSEQUENCES AND
COULD BE BLAMED ON ORDER 636

AT LEAST INITIALLY RESIDENTIAL USERS WON'T DO AS WELL AS THEY DID BEFORE
SAYS MICHAEL GERMAN VICE PRESIDENT FOR POLICY ANALYSIS AT THE AMERICAN GAS
ASSOCIATION AND INDUSTRIAL USERS WILL FARE BETTER THAN THEY DID UNDER THE
REGULATED SYSTEM BECAUSE THEY WILL HAVE MORE LEVERAGE TO DRIVE DOWN THEIR
COSTS

THE ALREADY INFLUENTIAL INDUSTRIAL CUSTOMERS WILL FIND THEIR BARGAINING
POWER MORE ENHANCED CAUSING SOME CONCERNS AMONG LOCAL UTILITIES BY SOME
THEORIES INDUSTRIAL USERS IN THE PAST HAVE SUBSIDIZED RESIDENTIAL USERS
NOW THAT INDUSTRIAL USERS CAN MORE WIDELY USE THE COMPETITIVE MARKETPLACE TO
DRIVE DOWN THEIR OWN RATES RESIDENTIAL USERS WILL LIKELY NEED TO PAY MORE
TO COVER A UTILITY'S FIXED COSTS

UTILITIES FEARFUL OF LOSING BIG CUSTOMERS ALREADY HAVE BEEN PROMPTED TO
OFFER MUCH MORE FLEXIBILITY TO BIG INDUSTRIAL USERS OR FACE LOSING THEM
ALTOGETHER NEW YORK STATE ELECTRIC & GAS CORP BINGHAMTON NY SAYS IT
HAS FIVE HEAVY USERS THREATENING TO LEAVE ITS SYSTEM IF RATES AREN'T
LOWERED ONE USER A PAPER COMPANY WOULD ONLY NEED TO BUILD A 100FOOT PIPE
TO HOOK UP WITH A NEARBY PIPELINE

STATE REGULATORS ARE HEADING IN THE RIGHT DIRECTION SAYS DONNA
VANDENBERG MANAGER OF GAS SUPPLY AND CONTROL AT THE UTILITY BUT WE NEED
MORE FLEXIBILITY TO KEEP THESE CUSTOMERS

JUST THIS WEEK STATE REGULATORS URGED PACIFIC GAS & ELECTRIC CO SAN
FRANCISCO TO SPEND 200 MILLION TO RESTRUCTURE LONGTERM CONTRACTS WITH
CANADIAN SUPPLIERS AS PART OF INDUSTRY DEREGULATION

UTILITIES ALSO ARE STARTING TO FACE GREATER THREATS FROM FELLOW UTILITIES
BROOKLYN UNION GAS CO NEW YORK SAID IT HAS APPLIED TO STATE REGULATORS
FOR PERMISSION TO SELL GAS IN OTHER STATES LIKELY TO INDUSTRIAL USERS AND
LAST WEEK IT FORMED A NEW YORK MARKET HUB WHERE IT WILL MARKET NATURAL GAS
TO CUSTOMERS WITH ACCESS TO THE NEW YORK REGION

THE BIGGER UTILITIES DESPITE THEIR PROBLEMS HAVE THE RESOURCES TO REAP
SOME OF THE BENEFITS OF THE NEW SYSTEM THEIR ECONOMIES OF SCALE ALLOW THEM
BETTER BARGAINING POSITIONS WITH PRODUCERS AND THEIR LARGE ORDERS ALLOW FOR
DIVERSIFICATION OF SUPPLIES SMALL MUNICIPAL UTILITIES CAN'T AFFORD THE SAME
OPTIONS

BEFORE ORDER 636 IT WAS ALL ONESTOP SHOPPING AND THAT SERVED THE SMALL
MUNICIPAL UTILITIES QUITE WELL SAYS JOHN E OLSON NATURAL GAS ANALYST FOR
MERRILL LYNCH NOW THESE SMALL SHOPS SOME TIMES WITH FEWER THAN TEN
PEOPLE NEED TO ARRANGE GAS PURCHASING TRANSPORTATION AND EVENTUAL
DELIVERY THESE PEOPLE ARE GOING TO HAVE TO MOVE FORWARD INTO THE 1990S VERY
QUICKLY

THE SHIFT IN RISK TOWARD THE GAS UTILITIES HAS CREATED ANGER AND FRUSTRATION
AMONG THE MORE THAN 900 SMALLER MUNICIPAL OPERATORS A LACK OF RESOURCES
MAKES IT INCREASINGLY DIFFICULT FOR THE SMALL MUNICIPALS TO COMPETE AND
MOST FACE HIGHER COSTS REGARDLESS OF HOW THEY HANDLE THE NEW DEREGULATION

THERE ARE GOING TO BE A LOT OF ECONOMIC CHANGES THAT WILL OCCUR BECAUSE OF
THIS ORDER THAT ARE REALLY KIND OF SENSELESS SAYS JACK HILLIARD MANAGER
OF FLORENCE NATURAL GAS SYSTEM FLORENCE ALA WHEN I THINK OF GREATER
COMPETITION I THINK THE PRICES WILL GO DOWN BUT OUR PRICES HAVE GONE UP
AND THEY'LL LIKELY KEEP HEADING UP

BUT LARGER PLAYERS IN THE INDUSTRY SUCH AS ENRON CORP A LARGE HOUSTON
PIPELINE AND PRODUCING CONCERN SAY THE SMALLER UTILITIES WILL NOT SUFFER
UNDER THE FINAL PHASE OF DEREGULATION COLLECTIVELY THE SMALL OPERATORS
REPRESENT LESS THAN 5 OF THE NATURAL GAS DELIVERY IN THE NATION AND ENRON
SAYS LARGE COMPANIES WON'T ALLOW SMALL TOWNS TO GO COLD IN THE WINTER

IT'S IN EVERYONE'S WORST INTEREST TO HAVE SOME KIND OF FOULUP SAYS
RICHARD KINDER PRESIDENT AND CHIEF OPERATING OFFICER OF ENRON THE LAST
THING WE WANT TO SEE IS THE CLOSING DOWN OF SCHOOLS BECAUSE SOMEHOW THE GAS
DIDN'T GET THERE

INDEED THE MOST PRECARIOUS SCENARIO FOR THE NATURAL GAS INDUSTRY IS A
PROLONGED BRUTAL COLD SNAP NOT ONLY DOES DEMAND RISE BUT EQUIPMENT IN
CERTAIN GAS SUPPLY REGIONS CAN BE ADVERSELY AFFECTED BY FREEZING WEATHER IN
THE PAST THE PIPELINES GUIDED BY REGULATION AND SUPPLIED FROM SEVERAL
SOURCES COULD MANEUVER AROUND PROBLEM LINES AND SUPPLY GAS TO AREAS IN THE
MOST NEED

NOW THE PIPELINES NO LONGER WILL BEAR THE BURDEN OF SUPPLYING LOCAL
UTILITIES INSTEAD GAS UTILITIES MOST OF WHICH WILL LACK THE DIVERSITY OR
BUYING POWER OF A PIPELINE COMPANY WILL HAVE TO HANDLE THE CHALLENGES OF
COLD WEATHER

MR KINDER SAYS PIPELINES WILL LIKELY DELIVER THE EXTRA GAS WHEN IT'S NEEDED
IN A KEY SITUATION AND SETTLE UP LATER AND HE BELIEVES SUCH SITUATIONS
WON'T BE LIMITED TO SMALLER UTILITIES

WHAT WE NEED TO DO IS SEE IF THE SYSTEM FUNCTIONS THROUGH THE WINTER HE
SAYS I HOPE WE DON'T HAVE A SIBERIAN COLD FRONT COME THROUGH

DEREGULATION WILL IMPOSE TRANSITION COSTS ON MOST UTILITIES LIKELY TO BE
PASSED ON TO LOCAL CUSTOMERS STARTING NOV 1 HERE ARE ESTIMATES BY SEVERAL
LARGE UTILITIES OF THEIR TRANSITION COSTS 9309010032 930901 CANADA'S
ECONOMY GAINS MODERATELY JOB OUTLOOK BLEAK  BY JOHN URQUHART 
STAFF REPORTER OF THE WALL STREET JOURNAL

OTTAWA CANADA'S ECONOMY RECORDED ANOTHER MODERATE ADVANCE IN THE
APRILJUNE PERIOD BUT JOB PROSPECTS REMAINED BLEAK FOR UNEMPLOYED
CANADIANS

STATISTICS CANADA A GOVERNMENT AGENCY SAID YESTERDAY THAT THE GROSS
DOMESTIC PRODUCT ROSE AN INFLATIONADJUSTED 08 IN THE SECOND QUARTER FROM
THE PREVIOUS THREE MONTHS OR AT A COMPOUND ANNUAL RATE OF 34 GDP IS THE
TOTAL VALUE OF THE GOODS AND SERVICES PRODUCED IN A NATION

THE SECOND QUARTER ADVANCE WAS SPURRED BY INCREASES IN CONSUMER SPENDING AND
BUSINESS INVESTMENT AND BY A BUILDUP IN BUSINESS INVENTORIES

GDP HAS INCREASED FOR NINE CONSECUTIVE QUARTERS BUT THE GROWTH HAS BEEN
SLOWER THAN IN PAST ECONOMIC RECOVERIES DETERRING MANY BUSINESSES FROM
TAKING ON ADDITIONAL WORKERS IN JULY THE UNEMPLOYMENT RATE WAS 116

TAMMY JOHNS DIRECTOR OF CANADIAN OPERATIONS AT MANPOWER TEMPORARY SERVICES
SAID THE JOB MARKET LOOKS NEGATIVE FOR THE REMAINDER OF THIS YEAR
MANPOWER'S LATEST SURVEY OF CANADIAN COMPANIES SHOWED 22 INTEND TO REDUCE
THEIR WORK FORCE IN THE FOURTH QUARTER ONLY 12 INTEND TO INCREASE THEIR
NUMBER OF EMPLOYEES WHILE 58 PLAN NO CHANGE THE REMAINDER WERE UNSURE

UNEMPLOYMENT IS HIGHEST IN ATLANTIC COAST PROVINCES WHERE THE JOBLESS ROLLS
HAVE RISEN BECAUSE THE REGION'S FISH STOCKS HAVE BEEN DEPLETED THE
GOVERNMENT AS A CONSERVATION MEASURE YESTERDAY ORDERED A SHUTDOWN OF FIVE
FISHING GROUNDS AND CUTBACKS AT THREE OTHERS THE ORDER IS EXPECTED TO COST
MORE THAN 9000 FISHERMEN AND FISH PROCESSORS THEIR JOBS NEWFOUNDLAND ONE
OF THE PROVINCES AFFECTED ALREADY HAS AN UNEMPLOYMENT RATE OF MORE THAN
20

ANNA GUTHRIE SENIOR ECONOMIST AT TORONTODOMINION BANK SAID SHE EXPECTS
EMPLOYMENT TO RISE IN 1994 BUT NOT ENOUGH TO MAKE A SUBSTANTIAL DENT IN THE
UNEMPLOYMENT RATE THE BANK PREDICTS THE AVERAGE UNEMPLOYMENT RATE WILL
DECLINE TO 111 NEXT YEAR FROM 113 THIS YEAR

MS GUTHRIE ATTRIBUTED THE CURRENT HIGH UNEMPLOYMENT RATE PARTLY TO A RETURN
TO THE JOB MARKET OF PEOPLE WHO PREVIOUSLY WERE TOO DISCOURAGED TO LOOK FOR
WORK

SEPARATELY STATISTICS CANADA REPORTED YESTERDAY THAT CANADA HAD A SECOND
QUARTER DEFICIT OF 677 BILLION CANADIAN DOLLARS US512 BILLION IN THE
CURRENT ACCOUNT OF ITS INTERNATIONAL BALANCE OF PAYMENTS THE CURRENT
ACCOUNT IS A FINANCIAL ACCOUNTING OF CANADA'S TRADE IN GOODS AND SERVICES
IT ALSO INCLUDES CROSSBORDER PAYMENTS OF INTEREST AND DIVIDENDS
9309010031 930901 LAW LEGAL BEAT BUSINESSES FIND SUITS ON SECURITY
 HARD TO DEFEND  BY JUNDA WOO STAFF REPORTER OF THE WALL STREET
JOURNAL

IT'S GETTING TOUGHER FOR BUSINESSES TO DEFEND THEMSELVES AGAINST LAWSUITS
ACCUSING THEM OF SHODDY SECURITY

THE SUITS ARE TYPICALLY FILED BY VICTIMS OF VIOLENT CRIMES COMMITTED ON
BUSINESS PREMISES NOW COURTS ARE APPLYING A NEW LEGAL STANDARD THAT ALLOWS
JURORS TO CONSIDER A MULTITUDE OF SAFETY ISSUES AND MAKES IT EASIER FOR
VICTIMS TO WIN SUITS

AND THEY'RE WINNING BIG AN EIGHTYEAR STUDY BY LIABILITY CONSULTANTS INC
FOUND THE AVERAGE JURY VERDICT FOR A RAPE ON A BUSINESS PREMISES TO BE 18
MILLION FOR A DEATH JURORS AWARDED 22 MILLION THE FRAMINGHAM MASS
SECURITYCONSULTING COMPANY COMPILED THE SURVEY RESULTS FROM VERDICTS
VOLUNTARILY REPORTED BY ATTORNEYS TO A NATIONAL GROUP OF PLAINTIFFS'
LAWYERS

SOME OF THE BIGGEST VERDICTS ARE COMING IN THIS AREA SAID F ROBERT RADEL
II A TAMPA FLA LAWYER WHO DEFENDS BUSINESSES THE CASES ARE BECOMING
MORE AND MORE FREQUENT AND THE STANDARDS ARE BECOMING MORE AND MORE
LIBERAL

UNDER OLDER STANDARDS STILL USED IN SOME STATES INCLUDING NEW YORK
COMPANIES ARE LIABLE FOR CRIMES THAT ARE SIMILAR TO PREVIOUS CRIMES
COMMITTED ON THEIR PROPERTY FOR INSTANCE AN APARTMENT OWNER WOULD LIKELY
BE HELD LIABLE FOR A RAPE IF TWO PREVIOUS RAPES TOOK PLACE ON HIS PROPERTY
EVIDENCE OF DISSIMILAR CRIMES WOULD BE EXCLUDED

UNDER THE NEW AND MORE POPULAR STANDARD MOST RECENTLY ADOPTED BY THE KANSAS
SUPREME COURT THIS SUMMER EVIDENCE OF ALL PREVIOUS CRIMES CAN GO BEFORE A
JURY AND ADDITIONAL FACTORS SUCH AS LIGHTING AND OTHER SAFETY FEATURES
CAN ALSO BE CONSIDERED BY JURORS

CALIFORNIA FLORIDA LOUISIANA AND SOUTH DAKOTA AMONG OTHER STATES ALSO
NOW USE BROAD STANDARDS WHICH IN THE PAST SEVERAL YEARS HAVE BEEN EMBRACED
BY MOST COURTS THAT HAVE TAKEN UP THE ISSUE

IN THE KANSAS CASE FOR INSTANCE A WOMAN WAS SHOT BY A ROBBER IN AN
UNDERGROUND SHOPPINGCENTER GARAGE OWNED BY VIC REGNIER BUILDERS INC IN
OVERLAND PARK KAN BECAUSE HER ATTORNEY OFFERED NO EVIDENCE OF PREVIOUS
CRIMES THERE A LOWER COURT DISMISSED THE CASE BEFORE TRIAL

BUT THE KANSAS SUPREME COURT REINSTATED THE LAWSUIT AND SENT IT BACK TO A
LOWER COURT A NEARBY PARKING LOT HAD BEEN THE SITE OF A ROBBERY CAR
BREAKIN AND TWO FOILED ROBBERY ATTEMPTS THE HIGH COURT NOTED IN
ADDITION THE GARAGE ITSELF WAS POORLY LIT

THE STATE SUPREME COURT RULED THAT VICTIMS' ATTORNEYS SHOULD BE ALLOWED TO
PRESENT EVIDENCE OF SUCH INCIDENTS TO JURIES ONE SHOULD NOT BE ABLE TO
OPEN AN ALLNIGHT POORLY LIT PARKING LOT IN A DANGEROUS HIGH CRIME AREA OF
AN INNER CITY WITH NO SECURITY AND HAVE NO LEGAL FORESEEABILITY UNTIL AFTER
A SUBSTANTIAL NUMBER OF ONE'S OWN PATRONS HAVE FALLEN VICTIM TO VIOLENT
CRIMES THE COURT SAID IN ITS DECISION

BUSINESSES DON'T HAVE TO GUARANTEE PATRONS' SAFETY THE COURT ADDED BUT
THEY MUST TAKE ALL ECONOMICALLY FEASIBLE STEPS TO PROVIDE A REASONABLE LEVEL
OF SECURITY

THIS IS A GREAT RULING FOR VICTIMS OF VIOLENT CRIME BUT A DIFFICULT ONE
FOR PROPERTY OWNERS SAID SCOTT JACOBS EDITOR OF MEALEY'S LITIGATION
REPORT PREMISES LIABILITY A WAYNE PA NEWSLETTER THAT TRACKS SUCH CASES

THE DECISION PUTS PROPERTY OWNERS IN A STICKY POSITION BECAUSE THEY MAY
HAVE TO BEEF UP SECURITY AND BECAUSE IT'S ALMOST IMPOSSIBLE TO KNOW JUST HOW
MUCH MORE SECURITY IS REASONABLE ATTORNEYS SAY WHAT IS REASONABLE VARIES
CASE BY CASE DEPENDING ON INDUSTRY AND LOCAL NORMS

IT'S VERY HARD FOR BUSINESS OWNERS TO APPLY SAID DAVID W HAUBER THE
KANSAS CITY KAN ATTORNEY FOR THE PARKINGGARAGE OWNER OUR EXPERTS
INDICATED THAT THIS WAS A LOWCRIME AREA

PROPERTY OWNERS FACE AN EXTRA HEADACHE IF THEIR STATE HAS A
CONSUMERPROTECTION ACT A GROWING NUMBER OF ATTORNEYS FOR CRIME VICTIMS ARE
SUING UNDER SUCH ACTS BECAUSE VICTIMS CAN RECOVER MORE THAN THEY WOULD IF
THEY JUST SUED FOR NEGLIGENCE

FOR EXAMPLE A TENANT OF BERRY PROPERTY MANAGEMENT INC CORPUS CHRISTI
TEXAS ACCUSED THE COMPANY OF NEGLIGENCE AND VIOLATING THE STATE'S DECEPTIVE
TRADE PRACTICES ACT AFTER SHE WAS RAPED BY AN INTRUDER SHE HAD ASKED FOR AN
EXTRA DOOR LOCK BUT WAS TOLD BY THE COMPANY WHICH IS UNDER NEW MANAGEMENT
THAT HER LEASE DIDN'T ALLOW IT IN FACT HOWEVER TEXAS LANDLORDS MUST
INSTALL A NIGHT LATCH IF A TENANT WANTS ONE

THE WOMAN WON 16 MILLION IN STATE COURT LAST YEAR AND A STATE APPEALS
COURT UPHELD THE VERDICT BERRY PROPERTY MANAGEMENT HAS ASKED THE TEXAS
SUPREME COURT TO REVIEW THE CASE

THE COURTS AND THE JURIES ARE REALLY IN OUR OPINION MAKING SOME
OUTRAGEOUS AWARDS SAID LARRY PERRONE DIRECTOR OF LIABILITY CLAIMS FOR
CONTINENTAL INSURANCE CO A LARGE COMMERCIAL INSURER AND A UNIT OF
CONTINENTAL CORP NEW YORK I GUESS THE POSITION MOST PEOPLE ON JURIES ARE
TAKING IS THAT ALL CRIME IS FORESEEABLE IT'S BECAUSE WE LIVE IN SUCH A
VIOLENT SOCIETY IT'S TERRIBLE

A MAJOR NEW YORK LAW FIRM IS IN HOT WATER OVER COMMENTS ONE OF ITS PARTNERS
MADE ABOUT MUSLIMS WHILE RECRUITING AT COLUMBIA LAW SCHOOL

IT ALL STARTED AT AN INTERVIEW A DAVIS POLK & WARDWELL PARTNER CONDUCTED
WITH SECOND YEAR STUDENT SUNITHA RAMAIAH IN A MEMO TO HER FELLOW STUDENTS
MS RAMAIAH ACCUSED JAMES BENKARD OF EQUATING THE ACTIVITIES OF THE VIKINGS
 FIGHTING ALL DAY AND MAKING LOVE ALL NIGHT WITH THE ACTIVITIES OF THE
MUSLIMS SHE SAID THAT WHEN SHE TOLD HIM THAT SHE FELT SORRY FOR MUSLIMS
WHO ARE PERSECUTED BECAUSE OF THE ACTIONS OF EXTREMISTS HE REPLIED COME
ON THEY BRING IT UPON THEMSELVES THE CONTROVERSY WAS FIRST REPORTED IN
THE NEW YORK LAW JOURNAL A TRADE JOURNAL

MR BENKARD SAID IN AN INTERVIEW THAT HIS TALK WITH MS RAMAIAH CENTERED
AROUND THE BOMBING OF THE WORLD TRADE CENTER AND A HISTORICAL DISCUSSION OF
THE SIMILARITIES BETWEEN THE VIKINGS AND CERTAIN ANCIENT MUSLIMS' CONCEPTS
OF HEAVEN EVERY REMARK I MADE TO HER WAS IN THE CONTEXT OF THE
TERRORISTS HE SAID ADDING THAT HE FELT BADLY ABOUT THE DISCUSSION
BECAUSE SHE FELT BADLY ABOUT IT

THE FIRM HAS APOLOGIZED TO MS RAMAIAH AND IN A MEMO TO ALL COLUMBIA LAW
STUDENTS HAS AGREED TO SPONSOR A FORUM TO DISCUSS THE HIRING TRAINING
RETENTION AND PROMOTION OF MINORITIES AT LAW FIRMS MANAGING PARTNER HENRY
KING SAID THE INCIDENT WAS CLEARLY AN ABERRATION AND A MISTAKE

EACH YEAR SOME LAW STUDENTS NATIONWIDE COMPLAIN ABOUT INSENSITIVE OR
DISCRIMINATORY REMARKS MADE BY RECRUITERS FOR EXAMPLE AT HARVARD LAW
SCHOOL WHERE MORE THAN 14000 RECRUITING INTERVIEWS ARE CONDUCTED EACH
YEAR STUDENTS REPORT FEWER THAN 10 INCIDENTS ANNUALLY OF OFFENSIVE REMARKS
BY LAW FIRM RECRUITERS ACCORDING TO JUNE THOMPSON THE SCHOOL'S DIRECTOR OF
CAREER SERVICES IT IS USUALLY RESOLVED WITH A PHONE CALL SAYS MS
THOMPSON AND THE FIRMS ARE USUALLY VERY GOOD ABOUT RESPONDING

KATIA HETTER CONTRIBUTED TO THIS ARTICLE 9309010030 930901 POLITICS &
POLICY DEFENSEINDUSTRY CONSOLIDATION TO GAIN PENTAGON'S SUPPORT AS
MARKET SHRINKS  BY THOMAS E RICKS AND JOE DAVIDSON STAFF
REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON PENTAGON OFFICIALS ARE PLANNING TO ENCOURAGE CONSOLIDATION IN
THE DEFENSE INDUSTRY TO HELP IT FIT THE SHRINKING POSTCOLD WAR MARKET

MOST NOTABLY THE PENTAGON PLANS TO ANNOUNCE LATER THIS MONTH THAT IT IS
FORMING A DEFENSE DEPARTMENT TASK FORCE ON ANTITRUST MATTERS AFFECTING THE
DEFENSE INDUSTRY THE TASK FORCE PLANS TO DEVELOP ITS OWN ANALYTICAL
CAPABILITY AND MAKE RECOMMENDATIONS IN DISCUSSIONS WITH ANTITRUST OFFICIALS
AT THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION THE POLICY STAND
CONTRASTS SHARPLY WITH THE HANDSOFF POLICY REGARDING DEFENSE MERGERS BY THE
BUSH ADMINISTRATION'S PENTAGON

PEOPLE FEEL THERE IS GOING TO BE A BIG DOWNSIZING AND WE CAN'T PICK
WINNERS AND LOSERS BUT WE CAN'T BE OBLIVIOUS TO IT EITHER A DEFENSE
OFFICIAL SAID IN DISCUSSING THE NEW ANTITRUST PANEL IT'S GOING TO BE
SMALLER BUT WE WANT A HEALTHY DEFENSE INDUSTRY WHEN IT FINISHES THIS
COULD MEAN THAT SOME DEFENSE SECTORS WOULD WIND UP WITH ONE COMPANY
MONOPOLIZING A NICHE HE ADDED

ANOTHER PENTAGON OFFICIAL FAMILIAR WITH THE INITIATIVE ADDED TRADITIONAL
ANTITRUST ANALYSIS IS INEPT WHEN IT COMES TO THE DEFENSE INDUSTRY
PARTICULARLY IN THE CURRENT CIRCUMSTANCES

THE NEW PROMERGER PENTAGON POLICY IS THE LEGAL SIDE OF A LARGER DEFENSE
INDUSTRIAL POLICY THAT IS EMERGING AT THE CLINTON PENTAGON A MAJOR PART OF
THAT POLICY WILL BE UNVEILED TODAY WHEN DEFENSE SECRETARY LES ASPIN
DISCUSSES THE RESULTS OF HIS MONTHSLONG BOTTOMUP REVIEW OF HOW TO
RESHAPE THE DEFENSE ESTABLISHMENT TO FIT THE POSTCOLD WAR WORLD AS PART OF
THAT REVIEW FOR EXAMPLE THE PENTAGON PLANS TO FINANCE THE BUILDING OF
ANOTHER NUCLEAR ATTACK SUBMARINE NOT BECAUSE THE SUB IS NEEDED BUT SIMPLY
TO KEEP THE SUBBUILDING CAPABILITY ALIVE

THE NEW PENTAGON MOVES ON ANTITRUST HAVEN'T BEEN MADE PUBLIC BUT WERE
ALLUDED TO IN A SPEECH YESTERDAY BY WILLIAM PERRY DEPUTY DEFENSE SECRETARY
THE DEFENSE INDUSTRIAL BASE IS GOING TO BE CONTRACTED TO ABOUT ONETHIRD OF
WHAT IT WAS IN THE MID'80S MR PERRY SAID HIS DEPARTMENT HAS THE
RESPONSIBILITY TO ASSIST THAT CONSOLIDATION BY PROVIDING THE INDUSTRY WITH
INFORMATION TO HELP IT MAKE RATIONAL DECISIONS HE ADDED

ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID SHE HAS
DISCUSSED THE DEFENSE ANTITRUST QUESTION WITH JAMIE GORELICK THE NEW
PENTAGON GENERAL COUNSEL IN ADDITION HIGHLEVEL MEETINGS ARE PLANNED
BETWEEN OFFICIALS OF THE FTC AND THE DEFENSE DEPARTMENT AT ONE POINT THERE
HAD BEEN TALK OF INCLUDING REPRESENTATIVES FROM THE FTC AND JUSTICE
DEPARTMENT ON THE PANEL BUT THE CURRENT PLAN IS TO INCLUDE THEM ONLY AS
LIAISONS THE FULL MEMBERS OF THE PANEL ARE TO BE THREE LAWYERS TWO
ECONOMISTS AND TWO DEFENSE INDUSTRY EXECUTIVES

FTC AND JUSTICE DEPARTMENT OFFICIALS SAID THE PENTAGON'S OPINIONS ON DEFENSE
INDUSTRY ACTIONS ALREADY ARE GIVEN GREAT WEIGHT WHICH INDICATES THAT THE
PENTAGON'S MOREACTIVIST STANCE IN FAVOR OF CONSOLIDATION IS LIKELY TO SWAY
GOVERNMENT POLICY IN THAT AREA

THE NEW PENTAGON STANCE ALREADY IS RECEIVING STRONG SUPPORT FROM THE DEFENSE
INDUSTRY I THINK IT'LL HELP A LOT SAID NORMAN AUGUSTINE CHAIRMAN OF
MARTIN MARIETTA CORP WHO HAS ARGUED THAT THE DEFENSE DEPARTMENT SHOULD
TAKE MORE THAN AN INFORMAL ADVISORY ROLE ON DEFENSERELATED ACQUISITIONS I
THINK THIS COULD OPEN UP THE OPPORTUNITY FOR A LOT OF CONSOLIDATION

CURRENTLY MR AUGUSTINE CONTINUED DEFENSE INDUSTRY LEADERS ARE VERY MUCH
AFRAID TO PROPOSE A CONSOLIDATION BECAUSE OF AGGRESSIVE FEDERAL OPPOSITION
LAST YEAR TO ALLIANT TECHSYSTEMS INC'S ATTEMPT TO ACQUIRE THE ORDNANCE
BUSINESS OF OLIN CORP BUT HE SAID THAT EVEN WHEN THE PENTAGON'S NEW POLICY
IS PUBLICLY AND FIRMLY SET HE DOESN'T EXPECT AN IMMEDIATE FLOOD OF MERGER
ACTIVITY BUT RATHER THE BEGINNING OF A STEADY FLOW 9309010029 930901 NEW
LAWMAKERS IN HOUSE DISCOVER THE NEED FOR PACS  BY JACKIE CALMES
 STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON FIRSTTERM HOUSE MEMBERS ELECTED ON LAST YEAR'S WAVE FOR
CHANGE HAVEN'T YET BEATEN THE CAMPAIGNFINANCE SYSTEM THAT SO MANY OF THEM
DECRIED BACK THEN THEY'VE JOINED IT

IN THE FIRST SIX MONTHS OF THIS YEAR THE 110 NEW LAWMAKERS RAISED ALMOST
HALF THEIR CONTRIBUTIONS FROM POLITICALACTION COMMITTEES REPRESENTING LABOR
AND BUSINESS INTERESTS ACCORDING TO AN ANALYSIS BY THE WATCHDOG GROUP
COMMON CAUSE OF THE 81 MILLION TOTAL 38 MILLION OR 47 CAME FROM
THE PACS THAT MANY OF THE WASHINGTON NEWCOMERS ALONG WITH PRESIDENT
CLINTON HAVE ASSAILED

TO DATE SAID COMMON CAUSE'S PRESIDENT FRED WERTHEIMER IN A STATEMENT
FRESHMAN HOUSE MEMBERS HAVE DONE A FAR BETTER JOB IN RAISING
SPECIALINTEREST PAC MONEY THAN THEY HAVE IN REFORMING THE CAMPAIGN FINANCE
SYSTEM

BEFORE WINNING ELECTION LAST FALL THE FRESHMAN GROUP RAISED ABOUT A QUARTER
OF ITS CAMPAIGN FUNDS FROM PACS COMMON CAUSE SAID THAT LOWER FIGURE AND
THE SUBSEQUENT INFUSION SINCE ELECTION DAY REFLECTS USUAL FAVORITISM OF
PACS TOWARD INCUMBENTS WHO ARE A SAFER BET FOR ELECTION THAN CHALLENGERS
IN THE EIGHT WEEKS IMMEDIATELY FOLLOWING THE NOV 4 ELECTION 88 OF THE 110
NEW VICTORS RECEIVED MONEY FROM PACS THAT HADN'T CONTRIBUTED TO THEM BEFORE

THE NEWCOMERS ARE DOING AT LEAST AS WELL AT THE FUNDRAISING GAME AS VETERAN
MEMBERS THEIR 47 SHARE FOR PAC DONATIONS THIS YEAR EQUALS THE AVERAGE
PERCENTAGE THAT HOUSE INCUMBENTS RAISED IN THE PAST TWO YEARS FOR LAST
FALL'S RACES ACCORDING TO A PREVIOUS COMMON CAUSE STUDY

DEMOCRATS AS USUAL DID BETTER THAN REPUBLICANS AT RAISING PAC FUNDS
LARGELY BECAUSE THEIR PARTY CONTROLS CONGRESS REPUBLICANS DO BETTER AT
RAISING MONEY FROM INDIVIDUALS COMMON CAUSE FOUND THAT THE 63 FIRSTTERM
DEMOCRATS RAISED 75639 ON AVERAGE THROUGH JUNE OF WHICH 45010 WAS FROM
PACS THE 47 GOP FRESHMEN RAISED ABOUT THE SAME TOTAL AMOUNT BUT THEIR
SHARE OF PAC MONEY WAS 20966LESS THAN HALF THE DEMOCRATS'

THE SENATE PASSED A CAMPAIGNFINANCE REFORM MEASURE EARLIER THIS YEAR WITH A
BAN ON PAC FUNDS BUT THAT PROVISION IS ALL BUT CERTAIN TO BE REJECTED WHEN
THE HOUSE DEBATES ITS OWN VERSION THIS FALL AS COMMON CAUSE POINTED OUT
SOME FRESHMAN DEMOCRATS HAVE TAKEN A LEAD AT GOADING HOUSE LEADERS TO PASS
FUNDRAISING CHANGES IT SINGLED OUT AS REFORMERS REPS ERIC FINGERHUT OF
OHIO CAROLYN MALONEY OF NEW YORK AND KAREN SHEPHERD OF UTAH ALL OF WHOM
RAISED MORE THAN HALF THEIR CONTRIBUTIONS FROM PACS DURING THE PAST SIX
MONTHS

WE OBVIOUSLY SAW THE PROBLEM THAT PEOPLE WOULD SAY 'YOU'VE BEEN COOPTED
AND BECOME PART OF THE SYSTEM YOU PROMISED TO CHANGE' SAID BEVERLY MILLER
AN ASSISTANT TO REP SHEPHERD BUT WHILE YOU WORK TO CHANGE THE SYSTEM YOU
HAVE TO WORK WITHIN THE SYSTEM 9309010028 930901 OTC FOCUS NASDAQ
MOVES TO ANOTHER RECORD HIGH AIDED BY GAIN IN TREASURY'S LONG BOND 
 BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL

NEW YORK NASDAQ STOCKS MOVED HIGHER TO ANOTHER RECORD CLOSE OUTPACING
THE NEW YORK STOCK EXCHANGE FOR MUCH OF THE DAY UNTIL A LATE RALLY PUSHED
THE DOW JONES INDUSTRIAL AVERAGE INTO POSITIVE TERRITORY

THE NASDAQ COMPOSITE INDEX ROSE 546 POINTS OR 074 TO 74284 ECLIPSING
MONDAY'S RECORD CLOSE THE NASDAQ 100 INDEX ROSE 672 TO 74537 AND THE
NASDAQ INDUSTRIAL INDEX GAINED 608 TO 75673 NATIONAL MARKET VOLUME WAS
265101800 SHARES UP FROM 223344000 SHARES MONDAY AND ADVANCERS BEAT
DECLINERS 1770 TO 1180

THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WAS UP 084 POINT OR 033 TO
25688 AND THE DOW JONES INDUSTRIAL AVERAGE WHICH CLOSED AT 365125 WAS
UP 726 POINTS OR 02

HUGH JOHNSON CHIEF INVESTMENT STRATEGIST AT FIRST ALBANY CORP SAYS THE
BIG ECONOMIC PICTURE BECAME CLOUDED TODAY BY NEWS THAT WAS NOT GOOD HE
SAYS THAT ALTHOUGH SECONDQUARTER GROSS DOMESTIC PRODUCT WAS REVISED UPWARD
TO AN ANNUAL RATE OF 18 FROM 16 THE BULK OF THE UPWARD REVISION WAS DUE
TO HIGHERTHANEXPECTED INVENTORIES IN THE QUARTER WHICH TENDS TO IMPLY
REDUCED ECONOMIC ACTIVITY IN COMING PERIODS THAT NEWS WAS FOLLOWED BY THE
REPORT OF A DROP IN THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX FOR
AUGUST

THE CONSUMER CONFIDENCE NUMBER REMINDED PEOPLE THAT ALL IS NOT WELL WITH
THE ECONOMY SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH
CORP THERE'S A BIT OF FEAR OUT THERE AND THAT WILL DAMPEN CONSUMER
SPENDING

FIRST ALBANY'S MR JOHNSON SAID THE OUTLOOK FOR SLUGGISH ECONOMIC GROWTH
ACCOUNTS FOR WHY OVERTHECOUNTER STOCKS ARE TENDING TO OUTPERFORM BIG BOARD
ISSUES

HE SAID MANY ECONOMISTS HAVE THE JITTERS ABOUT THE ECONOMIC OUTLOOK AND
THAT MAKES IT A TOUGH ENVIRONMENT TO BUY BIG STOCKS

HE SAID PORTFOLIO MANAGERS AND INVESTORS ARE LOOKING FOR STOCKS THEY CAN
FEEL GOOD ABOUT BUYING WHERE MANAGEMENT IS INVOLVED IN THE BUSINESS IN A
PASSIONATE WAY THESE ARE THE CHARACTERISTICS FOUND NOT IN THE LARGE
HIGHLY CAPITALIZED COMPANIES TRADED ON THE BIG BOARD BUT RATHER IN THE
SMALLER NICHE FOCUSED COMPANIES WHOSE STOCK TRADES OVER THE COUNTER

ALTHOUGH THE DOW JONES INDUSTRIAL AVERAGE ENDED THE DAY IN POSITIVE
TERRITORY OTC STOCKS RECENTLY HAVE BEEN THE BETTER PERFORMERS

THE NASDAQ MARKET HAS BEEN THE STRONGER PERFORMER IN THIS RALLY RISING
WHEN LARGERCAPITALIZATION STOCKS GAVE UP THEIR GAINS SAID ARGUS'S MR
SOLLOWAY

MR JOHNSON SAID THE OTC MARKET HAS BENEFITED FROM THE INCLUSION OF MANY
TECHNOLOGYRELATED ISSUES NOTING YESTERDAY'S GAINS POSTED BY MICROSOFT
WHICH WAS UP 2 OR 33 AT 75 AND LOTUS WHICH ROSE 1 3/4 OR 52 TO 35
1/4

MICROSOFT ROSE AFTER THE COMPANY SAID THAT THE DESKTOP IV GOVERNMENT
CONTRACT AWARDED TO ZENITH DATA SYSTEMS AND GTSI INCLUDES PROGRAMS FROM
MICROSOFT'S OFFICE SOFTWARE SET AND THAT THE CONTRACT COULD RESULT IN UP TO
300000 USERS OF MICROSOFT WORD IN THE AIR FORCE AND OTHER MILITARY
BRANCHES

LOTUS'S GAINS CAME ON MOMENTUM FROM MONDAY'S 2 1/2 OR 81 RISE THAT
FOLLOWED AN UPGRADE BY DONALDSON LUFKIN & JENRETTE

IT'S THE PASSION FOR SMALL STOCKS AND THE CONTRIBUTION FROM MICROSOFT AND
LOTUS THAT DID IT FOR THE OTC STOCKS FIRST ALBANY'S MR JOHNSON SAID

IN ADDITION TO MICROSOFT AND LOTUS OTHER TECHNOLOGY ISSUES CONTINUED TO
ATTRACT STRONG INVESTOR ATTENTION SYMANTEC AT 16 5/8 WAS UP 1 OR 64
AND APPLIED MATERIALS UP 1 7/8 OR 27 CLOSED AT 71 3/4

CISCO SYSTEMS WHOSE RATING WAS LOWERED TO HOLD FROM BUY BY HANCOCK
INSTITUTIONAL EQUITY SERVICES FELL 2 OR 4 TO 47 3/4

TRANSPORTATION ISSUES POSTED SIGNIFICANT GAINS ON THE DAY TNT FREIGHTWAYS
WAS UP 1 1/2 OR 47 AT 33 1/2 MS CARRIERS AT 22 3/4 WAS UP 3/4 OR
34 AND ALEXANDER & BALDWIN POSTED AN INCREASE OF 1/2 OR 22 TO CLOSE
AT 23 3/4

WITH BOND YIELDS CONTINUING TO FALL INTERESTRATE SENSITIVE STOCKS DID
WELL BANK OF NEW HAMPSHIRE WAS UP 1 1/2 OR 86 TO 19 AND MARSHALL &
ILSLEY AT 24 1/4 WAS UP 1 OR 43 UNIRTIN WHICH CLOSED AT 45 WAS UP 1
1/2 OR 34 9309010027 930901 TECHNOLOGY & SCIENCE ADVANCE REPORTED
ON SYNTHETIC ENZYMES  SCIENTISTS' WORK MAY LEAD TO USEFUL
APPLICATIONS FOR INDUSTRY MEDICINE  BY JERRY E BISHOP STAFF
REPORTER OF THE WALL STREET JOURNAL

TWO BIOCHEMISTS IN TEXAS SAID THEY SYNTHESIZED SMALL MOLECULES THAT CAN
TRIGGER CHEMICAL REACTIONS AS RAPIDLY AND AS EFFICIENTLY AS NATURALLY
OCCURRING ENZYMES

THE DEVELOPMENT RAISED THE POSSIBILITY THAT DRUG COMPANIES COULD MAKE
ARTIFICIAL ENZYMES FOR MEDICAL USES THAT WOULD DUPLICATE NATURAL ENZYMES
THAT CURRENTLY ARE TOO DIFFICULT OR TOO EXPENSIVE TO MAKE CHEMICAL
COMPANIES MIGHT BE ABLE TO MAKE ARTIFICIAL ENZYMES TO EFFECT INDUSTRIAL
CHEMICAL REACTIONS FAR CHEAPER THAN AT PRESENT

ENZYMES ARE NATURALLY OCCURRING PROTEINS THAT ARE AMONG THE LARGEST AND MOST
COMPLICATED MOLECULES KNOWN THEY CAN TRIGGER OR CATALYZE CHEMICAL REACTIONS
AT ORDINARY ROOM TEMPERATURES AND PRESSURES MANY TIMES FASTER THAN CAN BE
ACHIEVED IN CHEMICAL FACTORIES UNDER HIGH TEMPERATURES AND PRESSURES
CHEMISTS HAVE BEEN TRYING FOR DECADES WITH LITTLE SUCCESS TO MAKE SMALL
CHEAP CATALYSTS THAT CAN DUPLICATE THE ACTIVITY OF ENZYMES

THE TWO BIOCHEMISTS AT BAYLOR COLLEGE OF MEDICINE IN HOUSTON DESCRIBED TWO
SMALL MOLECULES THEY HAD MADE IN THE LABORATORY THAT DUPLICATE THE ACTIVITY
OF TWO ENZYMES INVOLVED IN DIGESTION CHYMOTRYPSIN AND TRYPSIN IN ADDITION
M ZOUHAIR ATASSI AND TAGHI MANSHOURI HAVE SYNTHESIZED FOUR OTHER SMALL
CHEMICALS THAT DUPLICATE THE ACTIVITY OF OTHER ENZYMES BUT THEY AREN'T YET
READY TO PUBLISH DETAILS DR ATASSI SAID IN AN INTERVIEW

THE TWO CHEMISTS REVEALED THEIR FEAT IN THE SEPT 1 ISSUE OF THE PROCEEDINGS
OF THE NATIONAL ACADEMY OF SCIENCES DR ATASSI SAID HE HAD REFRAINED FROM
REPORTING THE DEVELOPMENT AT SCIENTIFIC MEETINGS AT THE REQUEST OF THE
UNIVERSITY'S PATENT OFFICE AS A RESULT ENZYME EXPERTS ELSEWHERE SAID THEY
COULDN'T COMMENT ON THE SCIENTIFIC MERITS OF THE TEXAS EXPERIMENTS UNTIL
THEY HAD STUDIED THE REPORT

IF IT IS CONFIRMED BY OTHER LABORATORIES AND ALL THE POSSIBLE ERRORS ARE
RULED OUT THEN THIS COULD BE SIGNIFICANT SAID ARIEH WARSHEL PROFESSOR OF
CHEMISTRY AND BIOCHEMISTRY AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IN LOS
ANGELES

THAT THEY SAY THEY CAN GET A SYNTHETIC MOLECULE THAT HAS A CATALYTIC
ACTIVITY IN THE SAME RANGE AS THE NATURAL ENZYME SURPRISES ME TO SAY THE
LEAST SAID HERBERT WEISSBACH AN ENZYMOLOGIST AND DIRECTOR OF THE ROCHE
INSTITUTE OF MOLECULAR BIOLOGY THE BASIC RESEARCH LABORATORY IN NUTLEY
NJ FOR ROCHE HOLDINGS LTD THE BIG SWISS DRUG MAKER POSSIBLE INDUSTRIAL
VALUE AT THE JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH IN BALTIMORE BIOCHEMIST
MICHAEL WASHABAUGH SAID HE DIDN'T THINK THE DEVELOPMENT IN TEXAS WOULD
ADVANCE THE SCIENTIFIC UNDERSTANDING OF ENZYMES VERY MUCH BUT THAT IT MIGHT
HAVE SOME INDUSTRIAL VALUE ALTHOUGH THAT REMAINS TO BE SEEN

NATURALLY OCCURRING ENZYMES ALREADY ARE WIDELY USED IN MEDICINE AND INDUSTRY
BUT THEY ARE PRODUCED USUALLY BY FERMENTING BACTERIA IN A VAT IN
MEDICINE SUCH EXPENSIVE DRUGS AS THOSE THAT DISSOLVE BLOOD CLOTS IN
HEARTATTACK PATIENTS ARE ENZYMES IN INDUSTRY ENZYMES ARE USED FOR
EVERYTHING FROM CONVERTING SUGAR TO ALCOHOL TO MAKING STAINREMOVING
ADDITIVES FOR DETERGENTS

IF ARTIFICIAL ENZYMES COULD BE MADE IN LARGE VOLUME THEY MIGHT BE CHEAPER
THAN FERMENTED BACTERIAL ENZYMES THEY COULD LEAD TO NEW MEDICINES THAT
DUPLICATE ACTIONS OF NATURAL ENZYMES THAT ARE CURRENTLY TOO DIFFICULT AND
TOO EXPENSIVE TO MAKE ARTIFICIAL ENZYMES MIGHT ALSO CUT THE ENERGY COSTS
ASSOCIATED WITH HIGHTEMPERATURE AND HIGHPRESSURE INDUSTRIAL CHEMICAL
PROCESSES

IN THEIR REPORT DRS ATASSI AND MANSHOURI DESCRIBED WHAT THEY CALL
PEPZYMES LIKE ALL PROTEINS INCLUDING ENZYMES THE SYNTHETIC CHEMICALS
ARE A SERIES OF SIMPLE AMINO ACIDS STRUNG TOGETHER LIKE BEADS UNLIKE
NATURAL ENZYMES WHICH MAY CONSIST OF 100 OR 200 AMINO ACIDS THE TWO
PEPZYMES CONSISTED OF ONLY 29 AMINO ACIDS EACH A SHORT STRING OF AMINO
ACIDS IS USUALLY CALLED A PEPTIDE HENCE THE COINED NAME PEPZYMES FOR THE
SYNTHETIC CHEMICALS

DESPITE THEIR SMALL SIZE THE PEPZYMES WERE AS CHEMICALLY ACTIVE AS THEIR
NATURAL COUNTERPARTS IN HYDROLYZING OR CUTTING A PROTEIN INTO PIECES THE
BIOCHEMISTS SAID THE PEPZYME THAT MIMICS THE NATURAL ENZYME CHYMOTRYPSIN
TRIGGERED AN AVERAGE OF 147 CHEMICAL REACTIONS A SECOND COMPARED WITH 185
REACTIONS A SECOND FOR THE NATURAL CHYMOTRYPSIN

THE SECOND PEPZYME DESIGNED TO MIMIC TRYPSIN TRIGGERED REACTIONS AT A RATE
ABOUT 40 THAT OF TRYPSIN ITSELF BUT THIS WAS FAR HIGHER THAN ANY PREVIOUS
EXPERIMENTS WITH ARTIFICIAL ENZYMES

THE TWO SCIENTISTS SAID THE MOST COMPELLING EVIDENCE THAT THE TWO PEPZYMES
WERE PERFORMING EXACTLY AS THE NATURAL ENZYMES WAS THE FACT THAT THE
FRAGMENTS CREATED AS THE PEPZYMES CUT UP THEIR TARGET PROTEINS WERE THE SAME
AS CREATED BY THE NATURAL ENZYMES 9309010026 930901 ENTERPRISE SCRIP'
ATMS APPEAL TO GROWING NUMBER OF RETAILERS  BUT NONCASH MACHINES ALSO
ATTRACT SOME QUESTIONABLE ENTREPRENEURS  BY JOHN R EMSHWILLER 
STAFF REPORTER OF THE WALL STREET JOURNAL

IT SOUNDS LIKE SOMETHING PLENTY OF RETAILERS WOULD LOVE TO OFFER THE
CONVENIENCE OF AN AUTOMATED TELLER MACHINE AT A FRACTION OF THE COST AND
RISK

INSTEAD OF SPITTING OUT CASH MACHINES PLACED IN STORES ISSUE RECEIPTS KNOWN
AS SCRIP THE SCRIP DRAWN AGAINST A CUSTOMER'S CHECKING ACCOUNT CAN BE
USED TO BUY MERCHANDISE OR CAN BE REDEEMED FOR CASH AT THE CHECKOUT COUNTER

SOME RETAILERS THINK THE DEVICES HAVE A GREAT FUTURE AND SO DO SOME
ENTREPRENEURS WITH QUESTIONABLE BACKGROUNDS AND PRACTICES WHO ARE PROMOTING
THE DEVICES

RETAILERS VIEW THE SCRIP MACHINES MAINLY AS A MEANS TO BOOST BUSINESS WE
ADDED ONE AS A CONVENIENCE TO CUSTOMERS SAYS LORI SILKWOOD COOWNER OF
SILKWOOD MARKETING INC A GAS STATION AND CONVENIENCE STORE IN TUCKER GA
MS SILKWOOD SAYS SHE BELIEVES THE MACHINE WHICH HANDLES ABOUT 30 TO 40
TRANSACTIONS A DAY HAS HELPED INCREASE HER BUSINESS

SCRIP MACHINES ARE MUCH LESS TEMPTING TO CRIMINALS THAN CASH MACHINES AND
BECAUSE THEY DON'T NEED THE SECURITY FEATURES TO HANDLE CASH SCRIP
DISPENSERS TEND TO BE MUCH CHEAPER TO BUILD AND MAINTAIN THAN TRADITIONAL
ATMS A TYPICAL SCRIP MACHINE COSTS ABOUT 2000 TO 3000 COMPARED WITH
15000 OR MORE FOR A CASH ATM ACCORDING TO INDUSTRY OFFICIALS

THE COST OF A CASH ATM MACHINE IS PROHIBITIVE TO SMALLER MERCHANTS SAYS
MICHAEL ELLIS VICE PRESIDENT FOR SALES OF BANKCARD SERVICES CORP A
NORCROSS GA MANUFACTURER OF SCRIP MACHINES

TO BE SURE SCRIP MACHINES HAVE DRAWBACKS AS THEY DON'T SPIT OUT DOLLARS
DIRECTLY THEY CAN BE LESS CONVENIENT TO USE BESIDES SOME BANK CARD
NETWORKS THAT DO THE ELECTRONIC PROCESSING OF ATM TRANSACTIONS PREFER TO
STICK WITH CASH MACHINES AND HAVE BEEN UNWILLING TO HOOK UP SCRIP TERMINALS

BUT SCRIP ATMS HAVE BEEN AROUND FOR SEVERAL YEARS AND CAN BE FOUND IN
SEVERAL THOUSAND LOCATIONS AROUND THE COUNTRY MAINLY RETAIL OUTLETS SCRIP
ADVOCATES SAY THE POTENTIAL MARKET IS TENS OF THOUSANDS OF LOCATIONS AND
THEY SAY THEY ARE GEARING UP FOR A BIG SALES PUSH

THE INDUSTRY IS PUSHING BUSINESS OPPORTUNITIES SERVICING THE MACHINES
ESSENTIALLY COMPUTERAGE VARIATIONS ON VENDINGMACHINE ROUTES AN
ENTREPRENEUR BUYS A STRING OF ATMS AND COLLECTS A FEE OF ABOUT 50 CENTS
EVERY TIME SOMEONE USES ONE OF THE MACHINES

SEVERAL SUCH BUSINESSOPPORTUNITY VENTURES HAVE STARTED UP IN RECENT MONTHS
THEY HAVE BEGUN ADVERTISING IN NEWSPAPERS INCLUDING THIS ONE AND HOLDING
SEMINARS TO RECRUIT ENTREPRENEURS

BANKCARD SERVICES ONE OF ABOUT HALF A DOZEN US MANUFACTURERS OF THESE
DEVICES HOPES TO SELL UP TO 6000 SCRIP ATMS OVER THE NEXT 18 MONTHS
MANUFACTURERS SAY THEY HAVE DOZENS OF INDEPENDENT SALES COMPANIES TRYING TO
SELL OR LEASE THE MACHINES

AT LEAST A FEW VENTURES ARE ALSO PROMOTING THE MACHINES AS BUSINESS
OPPORTUNITIES THAT CAN EARN RETURNS AS HIGH AS 200 A YEAR WITH VIRTUALLY NO
RISK SUCH ASSERTIONS HAVE ALREADY STARTED ATTRACTING ATTENTION FROM SOME
REGULATORS

YOU SHOULD ALWAYS BE WARY OF ANYONE WHO OFFERS OR GUARANTEES A HIGH
PROFIT SAYS ROBERT K HOOKS DIRECTOR OF BUSINESS REGULATION AT THE GEORGIA
SECRETARY OF STATE'S OFFICE MR HOOKS SAYS HIS OFFICE HAS RECEIVED COPIES
OF THE PROMOTIONAL LITERATURE OF ONE GEORGIA ATM FIRM AND IS LOOKING INTO
WHETHER THE FIRM'S ACTIVITIES ARE SUBJECT TO STATE REGULATION

ANOTHER CONCERN OFFERING SCRIP ATM MACHINES IS CALLED AMERICAN SHEARSON ATM
INC BESIDES SELLING ITS DEVICE DIRECTLY TO RETAILERS THE BOCA RATON FLA
FIRM IS LAYING PLANS TO SELL FRANCHISES EARLY NEXT YEAR TO ENTREPRENEURS WHO
WANT TO MARKET ITS DEVICE CALLED THE MONEY MACHINE ACCORDING TO COMPANY
PRESIDENT RANDY PREFER WE HAVEN'T BEGUN TO SCRATCH THE SURFACE OF THE
MARKET YET HE SAYS

WHEN ASKED MR PREFER CONCEDES THAT HIS COMPANY DOESN'T HAVE ANY CONNECTION
WITH AMERICAN EXPRESS CO OR TO SMITH BARNEY SHEARSON INC A UNIT OF
PRIMERICA CORP AMERICAN EXPRESS PREVIOUSLY OWNED SHEARSON MR PREFER
WHO OPERATES ABOUT A DOZEN COMPANIES FROM THE SAME BOCA RATON OFFICE SUITE
INSISTS THAT HIS COMPANY'S NAME WASN'T CHOSEN TO BE MISLEADING IT WAS
SIMPLY A NAME I LIKED HE SAYS

AN AMERICAN EXPRESS SPOKESWOMAN SAYS THE NEW YORK COMPANY IS LOOKING INTO
WHETHER ITS TRADEMARK RIGHTS ARE BEING VIOLATED BY THE BOCA RATON FIRM A
SHEARSON SPOKESMAN SAYS HE NEVER HEARD OF THE BOCA RATON FIRM HE DIDN'T
HAVE ANY IMMEDIATE COMMENT ABOUT THE USE OF THE SHEARSON NAME

ANOTHER RECENT ENTRY IN THE SCRIP ATM BUSINESS IS ATLANTABASED BUSINESS
MOTIVATIONS INC WHICH HAS COME TO THE ATTENTION OF MR HOOKS AT THE
GEORGIA SECRETARY OF STATE'S OFFICE BUSINESS MOTIVATION'S OWNER FRED
DONAHUGH IS KNOWN TO FEDERAL CRIMINAL AUTHORITIES IN CONNECTION WITH A
CONTINUING INVESTIGATION OF A SERIES OF SUSPECTED BUSINESSOPPORTUNITY
FRAUDS MR DONAHUGH WAS COOWNER OF ONE OF THE SUSPECT VENTURES

MR DONAHUGH SAYS FEDERAL INVESTIGATORS HAVE INTERVIEWED HIM ABOUT SOME OF
THOSE VENTURES AND ABOUT HIS TIES TO JOHN WILLIAMSON AS PREVIOUSLY
REPORTED AUTHORITIES BELIEVE MR WILLIAMSON WAS THE MASTERMIND OF THE
VENTURES MR DONAHUGH SAYS THAT AS FAR AS HE KNOWS HE ISN'T A TARGET OF
THE FEDERAL PROBE AND DID NOTHING WRONG

A SPOKESMAN FOR THE US ATTORNEY'S OFFICE IN ATLANTA WHICH IS DIRECTING
THE INVESTIGATION DECLINES COMMENT MR WILLIAMSON COULDN'T BE LOCATED FOR
COMMENT ALTHOUGH IN THE PAST THROUGH AN ATTORNEY HE HAS DENIED
WRONGDOING

IN JUNE BUSINESS MOTIVATIONS RAN AN AD IN THIS NEWSPAPER TOUTING THE SCRIP
ATMS AT 5000 EACH AS A VIRTUALLY RISK FREE WAY TO EARN 18 A YEAR
PROMOTIONAL MATERIAL MAILED OUT BY THE COMPANY SAID THE 18 RETURN WOULD BE
GUARANTEED BY A BOND FROM AN OIL COMPANY CHEROKEE OIL & GAS INC IT TURNS
OUT THAT MR DONAHUGH OWNS THE OIL COMPANY WHICH IS BASED IN THE SAME
OFFICE SUITE AS BUSINESS MOTIVATIONS

WHEN QUESTIONED MR DONAHUGH STEADILY BACKS AWAY FROM THE GUARANTEE FIRST
HE DROPS ANY IDEA OF A CHEROKEE BOND SAYING IT MIGHT RUN AFOUL OF
SECURITIES REGULATORS BUT HE SAYS HE WILL PERSONALLY GUARANTEE THE 18
RETURN LATER HE CHANGES HIS MIND INVESTORS CAN TAKE THE SAME RISK AS I
TAKE HE SAYS

MR DONAHUGH SAYS HE IS THINKING OF QUITTING THE ATM BUSINESS SAYING HE
CAN'T MATCH SOME OF THE OFFERS BEING MADE BY HIS BUSINESSOPPORTUNITY
COMPETITORS IF I PUT IN THE PAPER THAT YOU COULD MAKE A FORTUNE IN 90
DAYS I COULD SELL BUT THAT WOULD BE BALONEY HE SAYS 9309010025 930901
WORLD MARKETS RATE HOPES BUOY TOKYO STOCKS PRICES SURGE IN FRANKFURT
RALLY TO ANOTHER RECORD IN PARIS  A WALL STREET JOURNAL NEWS ROUNDUP

TOKYO SHARE PRICES ROSE TUESDAY SETTLING ABOVE THE 21000 LEVEL FOR THE
FIRST TIME IN ALMOST THREE MONTHS ON CONTINUED EXPECTATIONS FOR LOWER
JAPANESE RATES

FRANKFURT STOCKS SURGED 12 TO FINISH AT A THREEYEAR HIGH PARTLY ON
FOREIGN BUYING THE PARIS MARKET'S RALLY STRETCHED INTO A SIXTH CONSECUTIVE
SESSION PUSHING SHARES UP TO RECORD FOR THE SECOND DAY IN A ROW BUT LONDON
PRICES WERE MIXED

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11302 UP 027 REFLECTING INCREASES IN AMERICAN ASIA/PACIFIC
AND EUROPEAN MARKETS

POLLUTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY
GROUPS CLOSING AT 8226 UP 332 OR 42 WITH WMX TECHNOLOGIES OF THE
US POSTING A 65 GAIN IN ITS LOCAL CURRENCY ALUMINUM STOCKS TRAILED AT
10816 DOWN 079 OR 07 WITH REYNOLDS METALS OF THE US SLIDING 26 IN
LOCAL CURRENCY

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 12101 POINTS MONDAY
CLIMBED 11391 TO 2102660 NEAR THE INTRADAY HIGH OF 2102970 ON
WEDNESDAY THE NIKKEI INDEX FELL 11951 POINTS TO CLOSE THE MORNING SESSION
AT 2090709 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION
SHARES UP FROM 2038 MILLION SHARES A DAY EARLIER GAINERS TOPPED LOSERS
547408 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES
WHICH ADDED 709 POINTS MONDAY ROSE 1546 TO 169309

THE MARKET'S RISE ALBEIT IN SOMEWHAT CHOPPY AND NERVOUS TRADING CAME AMID
STRONG EXPECTATIONS THAT THE BANK OF JAPAN WILL SOON CUT ITS OFFICIAL
DISCOUNT RATE NOW AT 25 THIS FOLLOWED A NEWS REPORT EARLY TUESDAY THAT
THE CENTRAL BANK MIGHT TRIM THE INTEREST RATE ON ITS LOANS TO BANKS BY 05
OR 075 PERCENTAGE POINT THIS MONTH BANKING SHARES ROSE ON THE RATECUT
TALK

THE NIKKEI LAST FINISHED ABOVE 21000 IN EARLY JUNE BUT MAINTAINING THAT
LEVEL COULD BE TENUOUS AS INVESTORS AWAITED DETAILS FROM THE NEW JAPANESE
GOVERNMENT ON PLANS TO STIMULATE THE ECONOMY SUCH AS DEREGULATION AND TAX
CUTS NEW DATA SHOWING PRODUCTION AT JAPAN'S FACTORIES AND MINES DROPPED A
SEASONALLY ADJUSTED 03 IN JULY FROM JUNE WORSE THAN EXPECTED ADDED
CONFIRMATION OF THE ECONOMIC MALAISE BUT HOUSING SHARES CONTINUED TO RISE
ON POSSIBLE TAX CUTS IN THAT SECTOR AND TRADING FIRMS GAINED ON RUMORED
DEREGULATORY MOVES

IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 2300 POINTS TO 194489
FOLLOWING A 1729POINT CLIMB MONDAY FOR A TWODAY INCREASE OF 21

FOREIGN INVESTORS BOUGHT IN THE LAST HOUR OF TRADING BOOSTING FRANKFURT'S
VOLUME THE MARKET ALSO GOT SUPPORT FROM STRONG GERMAN BOND PRICES AND A
GOOD PERFORMANCE ON OTHER EUROPEAN STOCK MARKETS INVESTMENT FUND MANAGERS
RICH WITH CASH FROM INVESTORS FLEEING FALLING YIELDS ON OTHER TYPES OF
INVESTMENTS BOUGHT BLUE CHIPS DESPITE SOME HIGH PRICES BANKING AND
CHEMICAL SHARES LOGGED STRONG GAINS

IN PARIS FOREIGN FUNDS NOTABLY THOSE IN BRITAIN JUMPED ON THE BUYING
BANDWAGON PARTLY BECAUSE FRANCE LAUNCHED ITS PRIVATIZATION DRIVE WITH THE
INITIAL SELLOFF TO BE IN THE BANKING SECTOR AMID SIGNS OF MORE ECONOMIC
STABILITY FOR THE REST OF THE YEAR THE MAIN INDEX ROSE 05 MAKING ITS
1992 INCREASE 193 THE EXPIRATION OF CAC 40 INDEX FUTURES AND OPTIONS
TOWARD THE END OF YESTERDAY'S SESSION HELPED REVIVE SHARE PRICES AFTER THEY
SEEMED READY TO HEAD LOWER AND OPTIONS HOLDERS SUCCESSFULLY PUSHED THE
STOCK MARKET INDEX UP

IN LONDON WHERE A HOLIDAY CLOSED THE EXCHANGE MONDAY THE FINANCIAL
TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 06 POINT TO 31000 THE FT
30STOCK INDEX EDGED UP 12 POINTS TO 24142 VOLUME WAS 4761 MILLION
SHARES DOWN FROM 5292 MILLION SHARES IN THE PREVIOUS SESSION

THE MARKET OPENED BRIGHTLY FOLLOWING THE THREEDAY WEEKEND TAKING ITS CUE
FROM OTHER BOURSES' SMART ADVANCES MONDAY ACTIVITY FOCUSED ON COMPANIES
THAT ARE TO REPORT RESULTS THIS WEEK AND ON A FEW STOCKS ON WHICH BROKERS
HAD MADE BUY OR SELL RECOMMENDATIONS BUT THE EARLY GAINS GAVE WAY TO
CAUTION AND PRICES SLIPPED AS WALL STREET OPENED WEAKLY MOST BUYING IN
LONDON WAS ATTRIBUTED TO INTERNATIONAL AND BRITISH RETAIL INVESTORS WITH
THE TRADING ACCOUNT PERIOD TO END FRIDAY MANY INSTITUTIONAL INVESTORS
DECIDED AGAINST PURCHASES THAT WOULD HAVE TO BE SETTLED SOON

IN AMSTERDAM INITIALLY BOOSTED BY HIGHER DUTCH BONDS SHARE PRICES ROSE BUT
FINISHED BELOW THE DAY'S PEAKS AS WALL STREET'S SOFT START DAMPED SENTIMENT
IN LATE TRADING TURNOVER WAS HIGH WITH MOST ATTENTION FOCUSED ON THE
FINANCIAL SECTOR AND MEDIUMSIZED COMPANIES THAT HAVE POSTED FAVORABLE
FIRSTHALF RESULTS

IN MILAN PRICES EASED THOUGH THEY DID RECOVER FROM A STRONG EARLY SELLING
WAVE AFTER THE MARKET SET RECORDS LAST WEEK THE CORRECTION WAS EXPECTED
IN MADRID SHARES FELL ON FUTURESRELATED SELLING AND VOLUME WAS HIGH IN
STOCKHOLM EQUITIES DROPPED BECAUSE OF RISING SWEDISH INTEREST RATES
WORRIES ABOUT THE KRONA CURRENCY AND PROFITTAKING IN THE PHARMACEUTICAL
SECTOR IN ZURICH SHARES LOGGED MARGINAL GAINS WITH BANKING AND INSURANCE
ISSUES HELPING TO SUPPORT THE MARKET DEALINGS WERE SUBDUED AMID MONTHEND
POSITION ADJUSTMENTS

SYDNEY SHARE PRICES CONTINUING TO SET NEW SIXYEAR HIGHS OVERCAME
PROFITTAKING AND RALLIED AT THE END OF THE SESSION PULLED UP BY MONTHEND
PORTFOLIO POSITIONING BY INSTITUTIONAL INVESTORS MANY STOCKS STRENGTHENED
BECAUSE INVESTORS ANTICIPATED SOLID PROFITS TO BE POSTED THIS WEEK

IN SINGAPORE EQUITIES FINISHED HIGHER AFTER STAYING NARROWLY IN THE RED
UNTIL THE SESSION'S FINAL 15 MINUTES BLUE CHIPS SHRUGGED OFF EARLY
PROFITTAKING PRESSURES TO HELP IN THE LATE RALLY IN HONG KONG FOLLOWING A
HOLIDAY CLOSING THE PREVIOUS DAY STOCKS ROSE ON OPTIMISM ABOUT BANK
EARNINGS IN TAIPEI PRICES FELL TO THEIR LOWEST POINT SINCE MIDFEBRUARY ON
A STATEMENT MONDAY BY TAIWAN'S CENTRAL BANK THAT IT WON'T CUT INTEREST RATES
IN THE SHORT RUN AS MANY INVESTORS HAD ANTICIPATED MANILA STOCKS ROSE IN
FOLLOWTHROUGH BUYING FOLLOWING THE MARKET'S TECHNICAL CORRECTION LAST WEEK
SEOUL SHARES DROPPED SHARPLY ON DISAPPOINTMENT ABOUT FOLLOWUP MEASURES BY
THE SOUTH KOREAN GOVERNMENT TO MINIMIZE EFFECTS OF A NEW FINANCIAL SYSTEM
BANNING THE USE OF FALSE OR BORROWED NAMES

AMONG CORPORATE DEVELOPMENTS IN PARIS ELF AQUITAINE FELL 27 FRENCH FRANCS
TO 4459 FRANCS 7628 THE STATECONTROLLED ENERGY GROUP'S FIRSTHALF
PROFIT SANK 59 TO 137 BILLION FRANCS 2344 MILLION FROM A YEAR EARLIER
MAINLY BECAUSE OF A 23 BILLIONFRANC WRITEDOWN ON OIL AND NATURAL GAS
ASSETS WHICH LED TO A 53 DECLINE IN OPERATING INCOME TO 369 BILLION
FRANCS WITH OIL PRICES NOT EXPECTED TO MOVE MUCH HIGHER ELF PREDICTED A
DROP IN ANNUAL EARNINGS FROM 618 BILLION FRANCS IN 1992

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
9309010024 930901 BUSINESS BRIEFS

ROBERTS PHARMACEUTICAL CORP SIGNED A LETTER OF INTENT TO ACQUIRE 10
PRESCRIPTION AND NONPRESCRIPTION PRODUCTS ALREADY IN THE MARKET FROM
BRISTOLMYERS SQUIBB CO TERMS WEREN'T DISCLOSED

KEMPER CORP SOLD ITS ECONOMY FIRE & CASUALTY CO UNIT TO ST PAUL COS IN A
TRANSACTION VALUED AT 420 MILLION IT EXPECTS TO REALIZE A 723 MILLION
THIRDQUARTER GAIN FROM THE TRANSACTION

SERVICE CORP INTERNATIONAL ONE OF THE WORLD'S LARGEST FUNERAL SERVICES
PROVIDERS COMPLETED ITS 69 MILLION ACQUISITION OF PINE GROVE FUNERAL GROUP
OF SYDNEY AUSTRALIA

HARRIS CORP RECEIVED A 16 MILLION CONTRACT FROM MARTIN MARIETTA CORP TO
DEVELOP A COMMUNICATIONS SUBSYSTEM THE CONTRACT WAS AWARDED TO HARRIS'
GOVERNMENT AEROSPACE SYSTEMS DIVISION

SUN TELEVISION & APPLIANCES INC INTENDS TO FURTHER EXPAND INTO NEW YORK
STATE BY ENTERING THE SYRACUSE NY MARKET AREA NEXT YEAR SUN EXPECTS TO
HAVE 38 STORES OPERATING AT THE END OF ITS CURRENT FISCAL YEAR 9309010023
930901 HEARD ON THE STREET FOOD STOCKS MAY DINE OUT ON GOODWILL' TAX
CHANGE  BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL

CHEER UP BRANDNAME INVESTORS

WASHINGTON HAS JUST SENT SOME GOOD NEWS YOUR WAY

TUCKED INTO THE TAX LEGISLATION THAT RECENTLY BECAME LAW IS A NEW RULE THAT
COULD SPUR SOME BIGNAME COMPANIES TO RESTRUCTURE BY SELLING UNWANTED
ASSETS

WHICH STOCKS WILL BE THE BIG WINNERS MAYBE THE BELEAGUERED FOOD STOCKS
ANALYSTS SAY I EXPECT TO SEE ASSET TRADING AND SWAPPING AMONG COMPANIES
ULTIMATELY THAT WILL BE GOOD FOR SHAREHOLDERS SAYS ROBERT WILLENS AN
ANALYST WITH LEHMAN BROTHERS

THE NEW TAX RULE GIVES COMPANIES A MORE FAVORABLE TAX TREATMENT THAN IN THE
PAST WHEN THEY BUY THE ASSETS OF A COMPANY FOR MORE THAN BOOK VALUE
ANALYSTS SAY THIS COULD BE JUST THE EXTRA KICK SOME FOOD COMPANIES NEED TO
PROCEED WITH AN OVERHAUL OF THEIR BUSINESSES

BORDEN IS A PRIME CANDIDATE TO TRY AND TAKE ADVANTAGE OF THE NEW RULE SINCE
IT BEGAN PROMISING AN OVERHAUL IN JULY AFTER REPORTING A 65 DROP IN
SECONDQUARTER EARNINGS INDEED SOME INSTITUTIONAL INVESTORS ARE BUYING
BORDEN'S STOCK BECAUSE THEY ARE CONVINCED THAT IT IS FINALLY ON THE VERGE OF
A LONGAWAITED RESTRUCTURING

THOMAS REILLY A PORTFOLIO MANAGER AT MONEY MANAGER PUTNAM COS HAS ADDED
TO CERTAIN PUTNAM PORTFOLIOS' HOLDINGS OF BORDEN STOCK ON HIS BELIEF THAT
BIG CHANGES ARE AFOOT AMONG THE FACTORS BOLSTERING HIS CONVICTION ARE HIS
BELIEF THAT CONSULTING FIRM MCKINSEY & CO IS PROWLING AROUND BORDEN'S
HEADQUARTERS OFTEN A PRECURSOR TO A RESTRUCTURING HE SAYS

A BORDEN SPOKESMAN SAYS MCKINSEY IS ONE OF THE CONSULTANTS WE'RE WORKING
WITH ON A NUMBER OF PROJECTS THE COMPANY RECENTLY REVAMPED ITS TOP
MANAGEMENT BRINGING IN ERVIN R SHAMES AS PRESIDENT

LOOKING AT THE LIST OF POSSIBLE RESTRUCTURINGS BORDEN IS A TOP CANDIDATE
SAYS MICHAEL MAUBOUSSIN AN ANALYST AT FIRST BOSTON WHO BELIEVES THE TAX
CHANGE COULD HELP TO SPUR BORDEN INTO ACTION

THE NEW TAX RULE GOVERNS AN ACCOUNTING ITEM CALLED GOODWILL GOODWILL IS
ANY ADVANTAGE INCLUDING A HIGHLY REGARDED BRAND NAME OR SYMBOL SUCH AS
BORDEN'S ELSIE THE COW THAT CAN HELP A BUSINESS PROSPER AND GOODWILL IS
CREATED ON A COMPANY'S BOOKS WHEN IT ACQUIRES ANOTHER COMPANY FOR MORE THAN
THE STATED OR BOOK VALUE OF THAT ENTERPRISE

DURING THE PAST COMPANIES WERE REQUIRED TO AMORTIZE GOODWILL WHICH REDUCED
THEIR REPORTED EARNINGS THROUGH REGULAR CHARGES OVER A PERIOD OF YEARS THEY
DIDN'T RECEIVE A TAX DEDUCTION HOWEVER UNDER SECTION 197 OF THE NEW TAX
PACKAGE COMPANIES WILL BE ALLOWED TO USE A SIMILAR TREATMENT TO REDUCE
THEIR TAXABLE INCOME OVER 15 YEARS A TAX BENEFIT THEY DIDN'T HAVE BEFORE

THE MORE ADVANTAGEOUS TAX TREATMENT ALSO WILL BE ALLOWED FOR ACQUIRERS OF
BUSINESSES WITH OTHER HARDTOVALUE INTANGIBLE ASSETS SUCH AS A COMPANY'S
TRADEMARKS TRADE NAMES KNOWHOW AND CUSTOMER LISTS

THE RULE WILL HAVE THE GREATEST IMPACT ON COMPANIES THAT HAVE HIGHLY
REGARDED BRAND NAMES SAYS MR MAUBOUSSIN PRECISELY BECAUSE OF THE BRANDS'
VALUE IN CONSUMERS' MINDS AND THEIR HIGH RECOGNITION FACTORS COMPANIES LIKE
BORDEN WHICH MAKES SUCH PRODUCTS AS CREAMETTE PASTA AND CRACKER JACK
SNACKS ARE TREASURE TROVES OF HOUSEHOLD NAMES

IN ADDITION TO BORDEN MR MAUBOUSSIN TICKS OFF A LIST OF COMPANIES THAT HE
THINKS MIGHT BE GOOD CANDIDATES TO TAKE ADVANTAGE OF THE NEW RULE BY
RESTRUCTURING AMONG THEM CONAGRA GENERAL MILLS GERBER PRODUCTS HJ
HEINZ HERSHEY FOODS KELLOGG MCCORMICK MORNINGSTAR GROUP QUAKER OATS AND
SARA LEE MANY OF THESE COMPANIES MIGHT SHED ASSETS AND SOME MIGHT BE
BUYERS HE FIGURES

IN SOME CASES THE NEW TAX BENEFITS COULD LURE BUYERS TO A HARDTOSELL
COMPANY IN OTHER CASES IT COULD MEAN A HIGHER PRICE TAG WOULD GO TO THE
SELLER AND AS STOCKHOLDERS ARE WELL AWARE SHEDDING A NETTLESOME BUSINESS
CAN BE GOOD FOR A COMPANY'S STOCK PRICE

THE RULE DOESN'T APPLY TO ALL ACQUISITIONS HOWEVER THE TAX BENEFIT WILL GO
ONLY TO COMPANIES THAT BUY THE ASSETS OF ANOTHER COMPANY RATHER THAN THE
SHARES OF ANOTHER COMPANY AS A RESULT ANALYSTS SAY THE RULE WILL BE OF
MOST BENEFIT TO BUYERS AND SELLERS OF DIVISIONS OR OTHER CHUNKS OF A
BUSINESS RATHER THAN THE WHOLE THING

THE NEW RULE ISN'T AN UNQUALIFIED BLESSING PREVIOUSLY SOME COMPANIES WENT
TO COURT TO CHALLENGE THE INTERNAL REVENUE SERVICE NOT ONLY DID SOME WIN
COURT RULINGS ALLOWING THEM FAVORABLE TAX TREATMENT BUT A FEW WERE ABLE TO
SPEED UP AMORTIZATION TO PERIODS SHORTER THAN 15 YEARS THE NEW TAX LAW
SHOULD PUT AN END TO THIS LITIGIOUS GAME

OTHER FACTORS ARE LEADING INVESTORS TO ANTICIPATE A PICKUP IN RESTRUCTURINGS
AMONG WELLKNOWN FOOD CONCERNS FOOD STOCKS HAVE BEEN DOWN SINCE THE START
OF 1992 SAYS MR MAUBOUSSIN

MAKING MATTERS WORSE HAS BEEN THE BIG SELLOFF OF BRANDNAME STOCKS AS A
RESULT OF FEARS ABOUT COMPETITION FROM CHEAPER COMPETITORS SUCH AS GENERIC
AND PRIVATELABEL GOODS THE STANDARD & POOR'S 500STOCK INDEX IS UP ABOUT 7
EXCLUDING DIVIDENDS COMPARED WITH THE BEGINNING OF 1992 HE SAYS WHILE THE
FOOD GROUP IS DOWN ABOUT 18

BUT NOW MR MAUBOUSSIN POINTS OUT WITH INTEREST RATES AT LOW LEVELS FOOD
COMPANIES CAN BORROW CHEAPLY TO FINANCE ACQUISITIONS THE UNWILLINGNESS TO
LEND AMONG BANKS FINALLY SEEMS TO BE ENDING

DON'T EXPECT A NEW ERA OF HOSTILE TAKEOVERS HOWEVER BECAUSE THE DEDUCTION
IS RESTRICTED TO THE ACQUISITION OF ASSETS AND NOT STOCKS CORPORATE
TAKEOVERS WON'T BE AFFECTED ANALYSTS SAY

THE CHANGE IN TAX LAW COULD HELP PROMPT SOME LEVERAGED BUYOUTS OF
BUSINESSES IN SUCH TRANSACTIONS IT ISN'T UNCOMMON FOR A BUNCH OF ASSETS
RATHER THAN A WHOLE COMPANY'S STOCK TO BE ACQUIRED

THOUGH BRANDNAME STOCKS ARE A LIKELY BENEFACTOR OF THE NEW RULE
LEGISLATORS HAD ANOTHER CONSTITUENCY IN MIND WHEN THEY DRAFTED THE RULE
SAYS PETER CANELLOS A TAX ATTORNEY WITH WACHTELL LIPTON ROSEN & KATZ IN
NEW YORK UNDER THE OLD RULE HE SAYS COMPANIES WERE ALWAYS IN COURT TRYING
TO ARGUE THAT THEY SHOULD RECEIVE TAX DEDUCTIONS FOR GOODWILL

BECAUSE GOODWILL IS A SLIPPERY CONCEPT HE SAYS PEOPLE SPENT A LOT OF
TIME CHALLENGING THE IRS ON THIS THE NEW RULE WAS INTRODUCED FOR THE
FIRST TIME IN A PACKAGE OF LEGISLATION THAT WAS VETOED BY FORMER PRESIDENT
BUSH LAST FALL

MR CANELLOS BELIEVES THE CHANGE IN TAX LAWS WILL BE A PLUS MAINLY BECAUSE
IT WILL ELIMINATE A LOT OF UNNECESSARY COURT BATTLES IT MAY ALSO IMPROVE
THE FINANCIBILITY' OF A TRANSACTION HE SAYS BECAUSE THE BANKS WON'T
HAVE TO WORRY ABOUT WHAT KIND OF TAX TREATMENT THE DEAL WILL HAVE
9309010022 930901 INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD
L HOLMAN

SINGAPORE SAID IT LEARNED THAT BURMESE EMBASSY OFFICIALS KIDNAPPED 11
BURMESE SAILORS AND DETAINED THEM FOUR DAYS BEFORE FLYING THEM HOME BECAUSE
THEY SOUGHT HIGHER PAY FOR WORK ON FOREIGN SHIPS

FOR A FEE STAR CORP SHIPPING CO A BURMESE COMPANY CONTROLLED BY THE
COUNTRY'S RULING JUNTA SUPPLIES FOREIGN SHIP OWNERS WITH SAILORS AND
ENSURES THEY WILL ACCEPT SUBSTANDARD PAY THE INTERNATIONAL TRANSPORT
WORKERS' FEDERATION ALLEGED

THE UNION AND THE SINGAPORE GOVERNMENT SAID THE 11 SAILORS HAD WON A WAGE
DISPUTE IN AUSTRALIA AND WERE TRAVELING TO BANGKOK WHEN THEY DROPPED FROM
SIGHT JUNE 3 IN SINGAPORE SINGAPORE SAID STAR AND BURMA FORCIBLY
REPATRIATED THE WORKERS TO RANGOON IN SIMILAR CASES THE UNION SAID BURMA
HAS JAILED SAILORS AND RETURNED THEIR BACK PAY TO SHIPPERS

SINGAPORE HOME AFFAIRS MINISTER S JAYAKUMAR TOLD PARLIAMENT THE BURMESE
EMBASSY PERSUADED QANTAS AIRWAYS AND PRIVATE SECURITY GUARDS AT SINGAPORE'S
AIRPORT TO HELP NAB AND HOLD THE 11 SAILORS WHEN THEY STOPPED TO CHANGE
PLANES

THE DUTCH GOVERNMENT WON WAGE AND OTHER CONCESSIONS FROM CIVIL SERVICE
UNIONS UNDER THE TWOYEAR AGREEMENT RETROACTIVE TO APRIL 1 UNIONS
REPRESENTING 120000 CENTRAL GOVERNMENT EMPLOYEES WILL GET A 18 PAY RAISE
THIS YEAR FORGO WAGE INCREASES NEXT YEAR AND GET A 05 RAISE ON JAN 1
1995 CIVIL SERVANTS WILL GET YEAREND BONUSES OF 03 OF SALARY LAST YEAR
GOVERNMENT SALARIES ROSE 2 THE NETHERLANDS ALSO MADE IT EASIER FOR WORKERS
TO GO PART TIME OPENING UP SLOTS FOR THE JOBLESS UNEMPLOYMENT COULD SWELL
TO 85 NEXT YEAR FROM 75 THIS YEAR

THE OFFICE VACANCY RATE IN TOKYO HIT A RECORD HIGH OF 75 IN THE YEAR ENDED
JUNE 30 JUMPING FROM 32 A YEAR EARLIER AS JAPAN'S ECONOMY WEAKENED IN
THE IKOMA DATA SERVICE SYSTEM CO SURVEY 87 OF OFFICES WERE EMPTY IN
KANAZAWA 5 IN SAPPORO 52 IN SENDAI 36 IN HIROSHIMA AND 3 IN
FUKUOKA IN TOKYO AVERAGE OFFICE RENTS FELL 81 IN THE YEAR ENDED AUG 31
WITH THE BROKERAGE INDUSTRY IN A SLUMP THE FINANCIAL DISTRICT'S VACANCY
RATE WAS 12 AND RENTS THERE PLUNGED 37

CHINESE AUTHORITIES HAVE DETAINED ABOUT 100 FINANCIAL OFFICIALS INCLUDING
SIX BANK MANAGERS ON CORRUPTION CHARGES THE OFFICERS OF BANKING CREDIT
AND INSURANCE COMPANIES WERE HELD IN SICHUAN PROVINCE IN SOUTHCENTRAL
CHINA CHINESECONTROLLED MEDIA IN HONG KONG REPORTED IN BEIJING'S DRIVE
AGAINST CORRUPTION CHINESE COURTS HAVE HANDED DOWN HARSH SENTENCES
INCLUDING THE DEATH PENALTY IN GRAFT BRIBERY AND EMBEZZLEMENT CASES

GOVERNMENT INVESTIGATORS HELPING TO WAGE PRESIDENT KIM YOUNG SAM'S
ANTICORRUPTION CAMPAIGN ALLEGED THAT SOUTH KOREANS WERE DUPED INTO DONATING
63 MILLION FOR AN UNNECESSARY DAM TOUTED AS PROTECTION AGAINST NORTH KOREAN
ATTACKS BY FLOOD THE DAM PROGRAM WAS LAUNCHED BY THE MILITARYBACKED
GOVERNMENT OF PRESIDENT CHUN DOO HWAN WHO SAID THE COMMUNIST REGIME IN
NORTH KOREA WAS BUILDING A DAM TO UNLEASH FLOODS AND DISRUPT THE 1988
OLYMPICS IN SEOUL CONSTRUCTION OF THE SOUTH KOREAN DAM WAS BEGUN IN 1987
BUT HALTED FOLLOWING THE GAMES

THE HONG KONG GOVERNMENT ORDERED AN INCREASE OF 38 OR 92 TO 449 A
MONTH IN THE MINIMUM WAGE FOR FOREIGN MAIDS EFFECTIVE TODAY MOST OF THE
100000 HOUSE MAIDS IN THE BRITISH COLONY WHO ARE KNOWN AS AMAHS ARE FROM
THE PHILIPPINES HUNDREDS OF MAIDS RECENTLY DEMONSTRATED IN DOWNTOWN HONG
KONG DEMANDING DOUBLE THE INCREASE GRANTED BY THE GOVERNMENT WHICH SAID
FOREIGN DOMESTIC HELPERS ARE PAID FAVORABLY BY REGIONAL STANDARDS

A THAI COURT GRANTED A GOVERNMENT REQUEST TO FORCE THE BUILDERS OF AN
87MILE EXPRESSWAY TO OPEN THE BANGKOK ROAD BY TODAY OR FORFEIT CONTROL TO
THE GOVERNMENT SENDING THE DISPUTE TO ARBITRATION

THE CONTRACTOR SAID IT WAS ALMOST IMPOSSIBLE TO COMPLY BANKERS ALREADY
WARY OF PUBLICWORKS CONTRACTS BECAUSE OF THE ROAD DISPUTE FEARED THE
HEAVYHANDED APPROACH COULD JEOPARDIZE OTHER PROJECTS

THE LONG BATTLE OVER CONTRACT CLAUSES BETWEEN THE GOVERNMENT AND THE
JAPANESELED BUILDING CONSORTIUM HAS ESCALATED SINCE THE 800 MILLION
SECTION OF THE ROAD WAS FINISHED IN APRIL THE GOVERNMENT HAS BEEN UNDER
PRESSURE TO OPEN THE EXPRESSWAY TO HELP ALLEVIATE BANGKOK'S HORRENDOUS
TRAFFIC PROBLEMS ESPECIALLY FOLLOWING A MIDAUGUST PLEA BY QUEEN SIRIKIT
ADULYADEJ TO TACKLE CHRONIC GRIDLOCK THE MONARCHY RARELY TAKES PUBLIC
POSITIONS

MEANWHILE TO HELP RELIEVE TRAFFIC JAMS KING BHUMIBOL ADULYADEJ DONATED
320000 TO BUY MOTORCYCLES FOR TRAFFIC COPS AND TRAIN THEM TO DIRECT
TRAFFIC BETTER

INFLATION IN YUGOSLAVIA HIT AN UNPRECEDENTED MONTHLY RATE OF 1881 IN
AUGUST WITH HALF THE WORK FORCE IDLE AND MONTHLY SALARIES DOWN TO 20 IN AN
ECONOMY ON THE BRINK OF COLLAPSE PRICES ARE RISING 10 A DAY  QUEEN
ELIZABETH II DECREED THAT BRITAIN'S ROYAL WORKERS FROM MAIDS TO CHEFS AND
GARDENERS WILL NO LONGER GET PAY INCREASES BASED ON SENIORITY THE PALACE
WORKERS WILL STILL GET COSTOFLIVING RAISES BUT FATTER PAYCHECKS NOW WILL
BE BASED MAINLY ON PERFORMANCE SOME OF THE 400 OR SO PALACE WORKERS WEREN'T
AMUSED 9309010021 930901 TRADING IN FUTURE COMMUNICATIONS INC IS
HALTED PHILIPS DISPUTE IS RESOLVED  BY BOB ORTEGA AND LAURIE P
COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL

TRADING IN FUTURE COMMUNICATIONS INC'S HIGHFLYING STOCK WAS HALTED
YESTERDAY EVEN AS THE CABLE TELEVISION AND PROGRAMMING COMPANY SAID IT
RESOLVED A 10YEAR LEGAL DISPUTE THAT COULD HAVE RESULTED IN THE SEIZURE OF
ITS ASSETS

A SPOKESMAN FOR THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID THE
SELFREGULATORY BODY FOR THE NASDAQ MARKET ORDERED THAT FUTURE
COMMUNICATIONS STOCK REMAIN HALTED LATE YESTERDAY WHILE IT DETERMINED
WHETHER THE COMPANY MET NASD LISTING QUALIFICATIONS NASDAQ IS THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS SYSTEM

FUTURE COMMUNICATIONS SHARES HAVE SOARED SINCE LATE JUNE WHEN THEY TRADED
AT 650 EACH ON MONDAY FUTURE'S STOCK CLOSED AT 27375 UP 875 CENTS

FUTURE COMMUNICATIONS SAID YESTERDAY THAT A THIRD PARTY WHICH IT DIDN'T
IDENTIFY HAD AGREED TO ACQUIRE A 29 MILLION JUDGMENT AGAINST IT FROM US
PHILIPS CORP FUTURE COMMUNICATIONS SAID THE THIRD PARTY AGREED TO PAY
PHILIPS 2 MILLION BY SEPT 15

FUTURE COMMUNICATIONS SAID THE AGREEMENT SHOULD END A DECADEOLD LEGAL
DISPUTE WITH PHILIPS STEMMING FROM THE PURCHASE OF EQUIPMENT BY UNITED
CABLEVISION OF TEXAS INC A FORMER UNIT OF FUTURE COMMUNICATIONS FROM A
PREDECESSOR OF PHILIPS IN JUNE 1992 A FEDERAL COURT JUDGE IN DALLAS
ORDERED UNITED CABLEVISION TO PAY 29 MILLION TO A UNIT OF US PHILIPS
FUTURE COMMUNICATIONS AND OTHER PARTIES HAD GUARANTEED NOTES FOR THE
PURCHASE

FAILURE TO SATISFY THE JUDGMENT HAD LED TO THE APPOINTMENT OF A RECEIVER
LAST MAY TO TAKE CONTROL OF FUTURE COMMUNICATIONS' ASSETS BUT THE COMPANY
DIDN'T COMPLY WITH THE COURT ORDER WHILE IT WORKED OUT A SETTLEMENT OF THE
JUDGMENT FUTURE COMMUNICATIONS' CHIEF EXECUTIVE OFFICER SERGIO BOSCO
DECLINED TO COMMENT ON ANY FINANCIAL ARRANGEMENTS THE COMPANY MAY HAVE
REACHED WITH THE UNIDENTIFIED THIRD PARTY

IF THE SETTLEMENT ISN'T COMPLETED SEPT 15 AS SCHEDULED PHILIPS COULD
RENEW ITS AUG 6 MOTION TO HAVE FUTURE COMMUNICATIONS HELD IN CONTEMPT FOR
FAILING TO TURN OVER ASSETS

THE DISPUTE WITH PHILIPS AND THE TRADING HALT CULMINATED AN EVENTFUL WEEK
FOR FUTURE COMMUNICATIONS SEVERAL NEWS REPORTS IN THE LAST WEEK HAVE SAID
THAT THE COMPANY IS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE
COMMISSION AN SEC SPOKESMAN DECLINED TO COMMENT BUT A SUBPOENA OBTAINED BY
THIS NEWSPAPER SHOWS THAT THE SEC'S FORT WORTH TEXAS REGIONAL OFFICE HAS
SOUGHT TESTIMONY FROM INDIVIDUALS ABOUT CHELSEA STREET SECURITIES INC A
DEFUNCT IRVING TEXAS FIRM THAT HAD BEEN A MARKET MAKER FOR FUTURE
COMMUNICATIONS UNTIL RECENTLY

INDIVIDUALS FAMILIAR WITH THE SEC PROBE SAID THAT CERTAIN CHELSEA STREET
BROKERS HAD BEEN ASKED ABOUT TRADING IN FUTURE COMMUNICATIONS AND ABOUT MR
BOSCO

SEVERAL OF CHELSEA STREET'S BROKERS MOVED TO REYNOLDS KENDRICK STRATTON
INC A BEVERLY HILLS CALIF TRADING FIRM THAT HELPED FUTURE
COMMUNICATIONS RAISE 12 MILLION IN A PRIVATE PLACEMENT IN MAY AND A
REYNOLDS KENDRICK BROKER RAFI KAHN PUT OUT A BUY RECOMMENDATION ON FUTURE
COMMUNICATIONS IN JUNE WHEN THE STOCK WAS TRADING AT 6625

MR KAHN SAID YESTERDAY THAT HE CONTINUES TO RECOMMEND FUTURE COMMUNICATIONS
BECAUSE HE BELIEVES THE COMPANY WILL BE THE BIGGEST BENEFICIARY OF THE
RECENTLY PASSED CABLE ACT OF 1993 WHICH MANDATED THAT LOCAL TV STATIONS
MUST BE CARRIED ON THE LOCAL CABLE NETWORK MR KAHN SAID THAT FUTURE
COMMUNICATIONS HAS MORE THAN 100 AFFILIATED LOCAL TV STATIONS 9309010020
930901 MARKETING & MEDIA ADVERTISING HAL RINEY'S NEW YORK OPERATION 
UNEXPECTEDLY FOLDED INTO ANGOTTI  BY KEVIN GOLDMAN

AFTER SEVEN YEARS OF TRYING TO ESTABLISH ITSELF AS A MAJOR CREATIVE PRESENCE
ON BOTH COASTS HAL RINEY & PARTNERS IS UNEXPECTEDLY MERGING ITS NEW YORK
OFFICE WITH ANGOTTI THOMAS HEDGE

THE MOVE WHICH CAUGHT MADISON AVENUE BY SURPRISE EFFECTIVELY SHUTTERS MR
RINEY'S NEW YORK OPERATION WITH BILLINGS OF A MERE 50 MILLION AND ABOUT 55
EMPLOYEES AND FOLDS IT INTO ANGOTTI FORMED IN 1985 ANGOTTI HAS ANNUAL
BILLINGS OF 105 MILLION WHILE THE NEW SHOP WILL BE CALLED RINEY ANGOTTI
HEDGE THE ORDER OF THE NAMES BELIES THE REAL POWER ANGOTTI CLEARLY WILL BE
IN CHARGE

RINEY ANGOTTI WILL OPERATE INDEPENDENTLY FROM HAL RINEY & PARTNERS IN SAN
FRANCISCO THE MOVE UNDERSCORES HOW DIFFICULT IT REMAINS FOR AN AD AGENCY TO
OPERATE SUCCESSFULLY ON BOTH COASTS THE TASK IS ALL THE MORE DIFFICULT WHEN
THE AGENCY IS PERSONIFIED BY ITS CHAIRMAN WHO MIGHT FIND HIMSELF SPREAD TOO
THIN BETWEEN NEW YORK AND THE WEST COAST IN THIS CASE HAL RINEY CHAIRMAN
AND CHIEF EXECUTIVE OFFICER REFUSED TO MOVE TO NEW YORK

THE MERGER TALKS WERE INITIATED BY JAMES D TRAVIS VICE CHAIRMAN OF RINEY
AND PRESIDENT AND CHIEF OPERATING OFFICER OF ITS NEW YORK OFFICE WE WANTED
A CREATIVE MERGER MR TRAVIS SAYS I WAS LOOKING FOR SOMEONE TO MANAGE
THE NEW YORK OFFICE I COULDN'T HIRE BARRIE HEDGE PRESIDENT OF ANGOTTI
HEDGE SO THIS WAS THE NEXT BEST THING

WHEN ASKED TO COMMENT ABOUT THE FACT THAT RINEY REALLY DIDN'T CREATE A HOT
NEW YORK SHOP AND THAT PERFORMANCE FELL BELOW EXPECTATIONS MR TRAVIS SAYS
A LOT OF AD AGENCIES DIDN'T WHAT WE DID WAS PUT TOGETHER A TERRIFIC
CREATIVE TEAM

NO LAYOFFS ARE EXPECTED ALTHOUGH MR HEDGE STOPS SHORT OF GIVING AN
UNCONDITIONED GUARANTEE SAYING WE'LL TRY TO KEEP EVERYONE

MR TRAVIS CASUALLY MENTIONED THE POSSIBILITY OF A MERGER LAST YEAR RECALLS
MR HEDGE 46 YEARS OLD BUT MR TRAVIS 61 SAYS THE TALKS BEGAN IN EARNEST
SEVERAL MONTHS AGO I WAS A LITTLE SHOCKED AND KIND OF PROUD SAYS MR
HEDGE AS AN AGENCY WE WEREN'T RUSHING AROUND FOR SOMETHING TO DO WE WERE
HAPPY

FINANCIAL TERMS ARE VAGUE MR HEDGE SAYS THAT RINEY WILL RECEIVE SOME
MONEY ALTHOUGH NOT UPFRONT HE DECLINED TO BE SPECIFIC EXCEPT TO ADD
THAT RINEY WILL CONTINUE TO HAVE FINANCIAL INVOLVEMENT IN THE OPERATION
MR HEDGE EMPHASIZES THAT CREATIVE CONTROL WILL LIE IN NEW YORK WE DON'T
HAVE TO ANSWER TO SAN FRANCISCO HE SAYS WE WILL BE TOTALLY AUTONOMOUS
FROM THAT OPERATION I NEED TO BE CLEAR ABOUT THAT

THE AGENCIES DON'T HAVE CLIENT CONFLICTS ALTHOUGH EXECUTIVES HAD TO CHECK
WITH TWO AUTOMOTIVE CLIENTS RINEY IN SAN FRANCISCO HANDLES GENERAL MOTORS'
SATURN ACCOUNT AND ANGOTTI IS THE AGENCY FOR SAAB OF AMERICA BOTH
AUTOMOTIVE MANUFACTURERS WERE INFORMED OF THE PENDING MERGER AND BOTH WAVED
OFF ANY PROTESTS ACCORDING TO THE AGENCIES

MR HEDGE A DIPLOMAT WITH A SENSE OF HUMOR CHUCKLES WHEN RESPONDING TO A
REMARK THAT HE HAS WORK CUT OUT FOR HIM IN SUPERVISING TWO CREATIVE
DIRECTORS ROCHELLE KLEIN FROM RINEY AND DION HUGHES FROM ANGOTTI

THE TWO WILL OVERSEE THE COMBINED CLIENT ROSTER WHICH INCLUDES FUJI PHOTO
FILM USA GENERAL ELECTRIC'S GE REWARDS MASTERCARD SUN CO'S SUNOCO
GASOLINE RINEY AND MOLSON BREWERIES USA DOW JONES & CO PUBLISHER OF THE
WALL STREET JOURNAL ORANGINA USA ANGOTTI

MR TRAVIS WILL RETAIN HIS CURRENT POSITION AS VICE CHAIRMAN OF RINEY &
PARTNERS AS WELL AS MANAGE THE TRANSITION MR HEDGE WILL BECOME PRESIDENT
AND MANAGING DIRECTOR TONY ANGOTTI COCREATIVE DIRECTOR AT ANGOTTI WILL
BECOME CHIEF CREATIVE OFFICER

ONE RINEY EXECUTIVE HAS ALREADY LEFT THE NEW YORK OPERATION IN ANTICIPATION
OF THE MERGER JOHN YOST 43 WHO PINGPONGED FROM SAN FRANCISCO TO NEW YORK
ONLY SIX MONTHS AGO IS BACK AT RINEY HEADQUARTERS IN SAN FRANCISCO MR
YOST EXECUTIVE VICE PRESIDENT AND MANAGING DIRECTOR SAYS THE MERGER IS A
GOOD WAY OF BUILDING CREATIVE CONTROL WE WERE IN A LITTLE BIT OF A NO
MAN'S LAND AND WE NEEDED TO FIND A WAY TO BREAK THROUGH

INDEED RINEY FOUND ITSELF HARD PRESSED TO COMPETE SPENDING LARGE SUMS IN
PITCHES FOR SUCH ACCOUNTS AS MASTERCARD INTERNATIONAL AND OLDSMOBILE 
NEITHER OF WHICH IT WON

THE NEW AGENCY WILL BE BASED AT RINEY'S MIDTOWN MANHATTAN OFFICE OFF FIFTH
AVENUE RATHER THAN IN ANGOTTI THOMAS'S OFFICE ON LOWER FIFTH AVENUE

MR HEDGE SAYS HE SEES THE MERGER AS A PERFECT OPPORTUNITY TO COMPETE FOR
NEW BUSINESS HE DOESN'T SEE IT AS A WEAKNESS THAT RINEY WILL NO LONGER HAVE
AN INDEPENDENT SHOP IN THE ADVERTISING CAPITAL OF THE WORLD CERTAINLY THEY
HAVEN'T ACHIEVED WHAT THEY HOPED TO ACHIEVE HE SAYS BUT FROM OUR
PERSPECTIVE WHAT THEY HAVE IS WORTH SAVING

THE MERGER TALKS WERE SURPRISINGLY SMOOTH BOTH SIDES RECALL IS THERE
ANYTHING THAT WOULD HAVE STOPPED THE UNION ANSWERS MR HEDGE IF EITHER
SAAB OR SATURN WERE UNHAPPY

IN RESPONSE TO CRITICISM FROM A GROUP OF PROFESSIONAL WOMEN WHO COMMUNICATE
THROUGH A NATIONWIDE COMPUTER NETWORK SONY ELECTRONICS INC SAID YESTERDAY
IT WOULD MODIFY A 30SECOND TELEVISION COMMERCIAL FOR ITS PORTABLE
MINIDISC PLAYER

THE COMMERCIAL SHOWS A YOUNG MUSCULAR MAN WEARING JEANS A TSHIRT AND
SUNGLASSES PUSHING BUTTONS ON HIS SONY STEREO EACH BUTTON IS PROGRAMMED TO
DISPLAY A WOMAN'S NAME WHEN THE MAN PRESSES A BUTTON A WOMAN APPEARS THE
TAG LINE IS IF YOU PLAY IT THEY WILL COME WOMEN WHO PROTESTED ARE
ESPECIALLY ANGRY OVER THE SLOGAN WHICH THEY SAY IS AN OBVIOUS
DOUBLEENTENDRE

SONY AND ITS AD AGENCY LEO BURNETT CHICAGO SAY THE TAG LINE WILL CHANGE
TO THE SOUND OF YOUR DREAMS BUT NO FURTHER MODIFICATIONS WILL BE MADE
WE HAVE LISTENED CAREFULLY TO THOSE WHO CONTACTED US SAYS A SPOKESMAN FOR
SONY ELECTRONICS A UNIT OF SONY CORP THE REVISED COMMERCIAL IS EXPECTED TO
BE ON THE AIR FRIDAY AND SONY SAYS AS ORIGINALLY SCHEDULED IT WILL RUN
THROUGH THE END OF THE MONTH THE SPOT RUNS MAINLY ON CABLE CHANNELS MTV
AND ESPN

I'M SURPRISED AND DISAPPOINTED SAYS LAURA DOWNEY A COMPUTER SCIENTIST
FOR THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY A BRANCH OF THE US
DEPARTMENT OF COMMERCE AND ONE OF THOSE WHO PROTESTED I WOULD HAVE
THOUGHT THEY WOULD HAVE REMOVED ANY TAG LINES THIS ONE IS JUST AS BAD THE
NEW EFFORT ADDS MS DOWNEY COULD CONNOTE SOUNDS OF LOVEMAKING

WHY NOT SHOW A BOYFRIEND AND GIRLFRIEND DRIVING DOWN THE HIGHWAY LISTENING
TO MUSIC SHE ASKS THAT WOULD SHOW WOMEN IN A BETTER LIGHT

SONY SAYS IT NEVER INTENDED TO OFFEND ANYONE

REVIEW FIRST INTERSTATE BANCORP LOS ANGELES WHICH OWNS BANKS IN 13
WESTERN STATES SAID IT IS PUTTING ITS 25 MILLION TO 30 MILLION AD ACCOUNT
UP FOR GRABS LOS ANGELES SHOP CAMPBELL & WAGMAN WHICH CURRENTLY HANDLES
THE BUSINESS IS INVITED TO TAKE PART THE BANK SAID ALONG WITH OTHER
AGENCIES WITH OPERATIONS IN WESTERN STATES WESTPORT CONSULTING OF
WESTPORT CONN IS CONDUCTING THE REVIEW

WHO'S NEWS WILLIAM CHOROROS REJOINS SAATCHI & SAATCHI PLC'S BACKER
SPIELVOGEL BATES AS AN EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR PHILIPS
CONSUMERELECTRONICS CO MR CHOROROS 53 YEARS OLD LEFT THE AGENCY IN 1992
AND HAS BEEN FREELANCING SINCE 9309010019 930901 INTERNATIONAL 
CADBURY SCHWEPPES SEEKS SEAT ON DR PEPPER BOARD

LONDON CADBURY SCHWEPPES PLC TURNED UP THE HEAT IN ITS PURSUIT OF A SEAT
ON THE BOARD OF DALLASBASED DR PEPPER/SEVENUP COS

IN A US SECURITIES AND EXCHANGE COMMISSION FILING CADBURY SAID IT INTENDS
TO CONVERT ITS 26 STAKE IN DR PEPPER INTO VOTING COMMON SHARES AS SOON AS
IT RECEIVES APPROVAL UNDER ANTITRUST LAW HOWEVER THE LONDON BEVERAGE AND
CANDY CONCERN SAID IT WOULD LIMIT PURCHASES OF DR PEPPER STOCK IN EXCHANGE
FOR A BOARD SEAT

A DR PEPPER SPOKESMAN DECLINED TO COMMENT LAST WEEK WHEN CADBURY ACQUIRED
122 MILLION DR PEPPER SHARES FOR 2318 MILLION THE US COMPANY
DISMISSED THE IDEA OF GIVING CADBURY A SEAT ON THE SEVENPERSON BOARD

CADBURY HINTED AT A TAKEOVER BID UNLESS IT GETS THE SEAT WE ARE CLEARLY
NOT MAKING AN OFFER SAID CHRIS MILBURN CADBURY'S DIRECTOR OF INVESTOR
RELATIONS BUT HE ADDED WE ARE NOT COMMITTED TO NOT MAKING A BID

CADBURY ONE OF THE WORLD'S LARGEST SOFTDRINK MAKERS ALREADY HAS
CONSIDERABLE BUSINESS TIES WITH DR PEPPER THE US COMPANY MAKES MOST OF
CADBURY'S CONCENTRATES FOR THE US MARKET AND IS THE EXCLUSIVE SALES AGENT
FOR CERTAIN CADBURY BRANDS

DR PEPPER SHARES CLOSED AT 19625 YESTERDAY UP 875 CENTS IN COMPOSITE
TRADING ON THE NEW YORK STOCK EXCHANGE DR PEPPER HAS ABOUT 602 MILLION
SHARES OUTSTANDING 9309010018 930901 POLITICS & POLICY GORE'S
GOVERNMENTREFORM PROPOSAL TO TARGET INCOMPETENT WORKERS AND EXCESSIVE
REGULATIONS  BY JEFFREY H BIRNBAUM AND TIMOTHY NOAH STAFF
REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON VICE PRESIDENT GORE WILL PROPOSE IN HIS PLAN TO REINVENT
GOVERNMENT TO MAKE IT EASIER TO FIRE INCOMPETENT FEDERAL WORKERS AND
ESTABLISH A NEW SYSTEM TO REVIEW AND ELIMINATE EXCESSIVE REGULATIONS

THESE ARE EXPECTED TO BE AMONG HUNDREDS OF SUGGESTIONS MR GORE WILL UNVEIL
TUESDAY IN AN OVER 200PAGE REPORT THAT HAS BEEN MONTHS IN THE MAKING THE
CHANGES ARE EXPECTED TO INCLUDE CLOSING SOME OUTDATED FEDERAL OFFICES
LIMITING SOME POPULAR GOVERNMENT BENEFITS SUCH AS AGRICULTURE PRICE SUPPORTS
AND PRIVATIZING THE NATION'S AIRTRAFFIC CONTROL SYSTEM

IF IMPLEMENTED THEY COULD SAVE BILLIONS OF DOLLARS IN TAXPAYER MONEY OVER
SEVERAL YEARS MORE THAN HALF THE SAVINGS WOULD COME FROM CUTTING PERSONNEL
COSTS

MR GORE AND HIS ADVISERS HAVE ALL BUT COMPLETED THE DOCUMENT AND PRESIDENT
CLINTON HAS BEEN BRIEFED IN DETAIL ON ITS CONTENTS BOTH MEN WILL DEVOTE
MUCH OF NEXT WEEK TO HIGHLIGHTING THE RECOMMENDATIONS SOME OF WHICH MUST BE
PASSED BY CONGRESS BEFORE THEY CAN BE PUT INTO EFFECT MR CLINTON HAS
DECLARED THE EFFORT ONE OF HIS TOP PRIORITIES THIS YEAR

AN IMPORTANT PART OF THE REPORT WILL BE A PROPOSAL TO ESTABLISH A NEW MORE
OPEN AND FASTER SYSTEM FOR EVALUATING REGULATIONS MR CLINTON AND OTHER
DEMOCRATS CRITICIZED PRESIDENT BUSH FOR KEEPING HIS REGULATORYREVIEW
PROCESS SECRETIVE AND ALLOWING WHAT THEY ALLEGED WERE BACKDOOR DEALS THAT
FAVORED CORPORATE INTERESTS

IN CONTRAST THE GORE PLAN WOULD REQUIRE MORE PUBLIC DISCLOSURE OF
SPECIALINTEREST PLEADINGS FOR REGULATORY RELIEF AN AUG 23 DRAFT OF THE
DOCUMENT WHICH ACCORDING TO THE ADMINISTRATION IS NOT FINAL SAID THE WHITE
HOUSE BUDGET OFFICE WOULD REVIEW ONLY THOSE PROPOSED REGULATIONS THAT WILL
HAVE SIGNIFICANT ECONOMIC FISCAL OR SOCIAL IMPACT

THE GORE PLAN TO STREAMLINE THE PROCEDURE FOR FIRING UNDERPERFORMING FEDERAL
WORKERS WOULD REDUCE THE REQUIRED NOTICE OF TERMINATION TO 15 DAYS FROM 30
DAYS IT ALSO WOULD LENGTHEN THE PERIOD BEFORE A WORKER CAN GET A PAY RAISE
BUT DESPITE THIS PROPOSAL THE GORE PLAN IS LIKELY TO GET THE BACKING OF THE
THREE MAJOR FEDERALEMPLOYEE UNIONS

THE DRAFT REPORT CONTAINS SEVERAL OTHER SIGNIFICANT PROPOSALS THEY INCLUDE

 EXEMPTING FEDERAL CONSTRUCTION PROJECTS OF UP TO 100000 FROM THE
DAVISBACON ACT WHICH REQUIRES THAT WORKERS ON ALMOST ALL FEDERAL PROJECTS
BE PAID THE PREVAILING WAGE IN THEIR AREA

 LIMITING AGRICULTURAL PRICESUPPORT PAYMENTS TO 50000 A YEAR FOR EACH
FARM FAMILY ELIMINATING PAYMENTS TO PARTNERSHIPS AND CORPORATIONS AND
REDUCING PAYMENTS TO INDIVIDUALS WITH ANNUAL NONFARM INCOMES OF OVER
100000

 PRIVATIZING FUNCTIONS OF VARIOUS AGENCIES INCLUDING THE GOVERNMENT
PRINTING OFFICE THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION AND THE
AIRTRAFFIC CONTROL SYSTEM

 PERMITTING PEOPLE TO PAY THEIR TAXES BY CREDIT CARD

 TRANSFERRING LAWENFORCEMENT FUNCTIONS OF THE DRUG ENFORCEMENT
ADMINISTRATION TO THE FEDERAL BUREAU OF INVESTIGATION

 ADOPTING A TWOYEAR BUDGET CYCLE INSTEAD OF THE ANNUAL SYSTEM

 REITERATING MR CLINTON'S SUPPORT FOR A PLAN APPROVED BY THE HOUSE THAT
WOULD ENABLE THE PRESIDENT TO FORCE A VOTE ON RESCINDING APPROVED SPENDING
ITEMS

 CHANGING RIGID PROCUREMENT PROCEDURES TO GUIDING PRINCIPLES THAT
PROMOTE DECENTRALIZED DECISIONMAKING

MANY OF THE PROPOSALS ARE PATTERNED AFTER SUCCESSES IN CORPORATE AMERICA
FOR EXAMPLE FEDERAL AGENCIES ARE LIKELY TO BE GIVEN MORE AUTONOMY IN
DECIDING HOW TO PAY THEIR WORKERS UNDER THE NEW SYSTEM MANAGERS MIGHT BE
ALLOWED TO SET UP TEAMS AND PROVIDE THEM BONUSES FOR BEING MORE PRODUCTIVE
THERE ALSO ARE LIKELY TO BE OFFERS OF EARLY RETIREMENT BUYOUTS TRANSFERS
AND RETRAINING TO WORKERS WHO WOULD NO LONGER BE NEEDED

SOME GOVERNMENT OFFICES SUCH AS THE PRESIDENT'S INTELLIGENCE OVERSIGHT
BOARD AND THE DEFENSE DEPARTMENT'S UNIFORMED SERVICES UNIVERSITY OF THE
HEALTH SCIENCES MIGHT BE ENDED AGRICULTURE SECRETARY MIKE ESPY ALSO SAID
IN AN INTERVIEW THAT HE IS THINKING ABOUT TERMINATING THE FARMERS HOME
ADMINISTRATION WHICH SERVES AS A MULTIBILLIONDOLLAR LENDING ARM FOR HIS
DEPARTMENT

DESPITE ITS STATED PURPOSE THE PLAN ALSO WOULD CREATE A VARIETY OF NEW
GOVERNMENT COUNCILS INCLUDING A NATIONAL PARTNERSHIP COUNCIL ON
LABORMANAGEMENT RELATIONS A PRESIDENT'S MANAGEMENT COUNCIL AND A COMMUNITY
EMPOWERMENT WORKING GROUP

THE GORE PLAN IN ADDITION MIGHT BECOME KNOWN FOR WHAT IT DECLINES TO DO
FOR A WHILE RUMORS SWIRLED THAT ONE OF THE THREE BIG PERSONNEL AND
ADMINISTRATIVE AGENCIES THE OFFICE OF PERSONNEL MANAGEMENT THE GENERAL
SERVICES ADMINISTRATION AND THE OFFICE OF MANAGEMENT AND BUDGET WOULD BE
PHASED OUT OR MERGED THAT OPTION APPEARS TO HAVE DIED AS HAS A PROPOSAL TO
ALLOW EACH AGENCY TO SUBMIT ITS BUDGET TO CONGRESS WITHOUT GOING THROUGH THE
WHITE HOUSE BUDGET OFFICE

KEVIN G SALWEN CONTRIBUTED TO THIS ARTICLE 9309010017 930901 GUARDIAN
BANCORP DEPARTURES

LOS ANGELES GUARDIAN BANCORP SAID ARTHUR W TATE PRESIDENT AND RONALD
W HOLLOWAY VICE CHAIRMAN OF ITS GUARDIAN BANK UNIT ARE NO LONGER IN THE
EMPLOY OF THE COMPANY

THE COMPANY SAID IT DECIDED TO ELIMINATE THE EXECUTIVE POSITIONS AS PART OF
A PLAN TO CUT COSTS AND RESTRUCTURE THE BANK HOLDING COMPANY MR TATE IS 53
YEARS OLD MR HOLLOWAY IS 50 THE EXECUTIVES' RESPONSIBILITIES HAVE BEEN
REASSIGNED

GUARDIAN ALSO SAID IT HIRED HOWARD A SHIELDS 56 AS CHIEF CREDIT OFFICER
OF GUARDIAN BANK MR SHIELDS CURRENTLY IS A REAL ESTATE LIQUIDATION
SPECIALIST AT THE FEDERAL DEPOSIT INSURANCE CORP 9309010016 930901
INTERNATIONAL SUMITOMO HEAVY OMITS PAYOUT

TOKYO SUMITOMO HEAVY INDUSTRIES LTD A MAJOR SHIPBUILDER AND
HEAVYMACHINERY MAKER IN JAPAN SAID IT WON'T PAY A DIVIDEND FOR THE FIRST
FISCAL HALF ENDING SEPT 30

REFLECTING THE PATTERN FOR THE COMPANY OF RELATIVELY SLIM PROFITS AND SALES
EARLY IN EACH FISCAL YEAR SUMITOMO HEAVY HASN'T DISTRIBUTED AN INTERIM
DIVIDEND IN SEVERAL YEARS A COMPANY SPOKESWOMAN EXPLAINED

FOR THIS FIRST HALF THE COMPANY MAINTAINS ITS INITIAL PREDICTION OF A
PRETAX LOSS OF TWO BILLION YEN 193 MILLION WITH A NET LOSS OF TWO
BILLION YEN ON SALES OF 110 BILLION YEN

THE BULK OF SALES OF MACHINERY CONNECTED WITH PUBLIC WORKS USUALLY SHOWS UP
IN THE SECOND HALF OF THE FISCAL YEAR ESPECIALLY AHEAD OF ITS MARCH CLOSE
FOR THE FULL YEAR SUMITOMO HEAVY PLANS TO MAINTAIN ITS DIVIDEND OF THREE
YEN THREE CENTS WHICH THE COMPANY LAST YEAR CUT FROM FOUR YEN
9309010015 930901 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF
FEDERAL AND STATE TAX DEVELOPMENTS  BY TOM HERMAN

A TEMPTING OFFER MAY NOT APPLY TO AS MANY PEOPLE AS IT SEEMS

THE NEW LAW ALLOWS SOME UPPERINCOME PEOPLE WHO OWE HIGHER 1993 TAXES TO
STRETCH OUT PAYMENT OF THE ADDITIONAL TAX OVER SEVERAL YEARS INSTEAD OF
PAYING THE ENTIRE INCREASE BY NEXT APRIL THEY MAY PAY IT IN THREE EQUAL
INSTALLMENTS THROUGH 1996 WITHOUT INTEREST ACCOUNTANTS URGE PEOPLE TO
GRAB THIS UNUSUAL OFFER BUT SOME WHO MAY ASSUME THEY ARE ELIGIBLE ARE NOT

THE OFFER APPLIES ONLY TO A TAX INCREASE CAUSED BY THE NEW TOP INCOMETAX
RATES OF 36 AND 396 IT DOES NOT APPLY TO PEOPLE OWING HIGHER TAXES
SOLELY BECAUSE OF CHANGES IN HOW MUCH OF THEIR SOCIAL SECURITY BENEFITS ARE
TAXED THOSE CHANGES BEGIN NEXT YEAR ALSO THE OFFER DOES NOT APPLY TO
INCREASES CAUSED BY THE ALTERNATIVE MINIMUM TAX AND THOSE WHO DO QUALIFY
MUST PAY THE FIRST INSTALLMENT BY NEXT APRIL REGARDLESS OF EXTENSIONS THE
RESEARCH INSTITUTE OF AMERICA WARNS

THIS RULE MAY CREATE HEADACHES FOR PEOPLE WHO NEED RETURNFILING EXTENSIONS

EVEN IF YOU QUALIFY INSTALLMENT PAYMENTS MAY OFFER LITTLE HELP TO SOME

HERE IS ANOTHER UNEXPECTED TWIST TO THE TEMPTING OFFER SOME UPPERINCOME
RESIDENTS OF HIGHTAX STATES SUCH AS NEW YORK AND CALIFORNIA MAY BE ABLE
TO SPREAD OUT LESS IN PAYMENTS THAN THEY THOUGHT THAT IS BECAUSE THE
ALTERNATIVE MINIMUM TAX WILL SERVE AS A CALCULATION BASE FOR SOME PEOPLE
EVEN IF THEY AREN'T SUBJECT TO THAT TAX SAYS RICK TAYLOR OF KPMG PEAT
MARWICK

CONSIDER A COUPLE WHO WOULD OWE 1993 REGULAR TAX OF 99107 UNDER THE OLD
LAW AND 112673 UNDER THE NEW LAW THE APPARENT AMOUNT SUBJECT TO
INSTALLMENT PAYMENTS IS 13566 BUT THEN THEY MUST FIGURE THEIR 1993
MINIMUM TAX WHICH COMES TO 102900 AND USE THAT AS THE BASE FOR
SUBTRACTION TAYLOR SAYS THUS THEY MAY SPREAD OUT PAYMENTS OF ONLY 9773
RICHARD L REINHOLD OF THE CAHILL GORDON & REINDEL LAW FIRM SAYS SOME PEOPLE
IN HIGHTAX STATES MAY GAIN LITTLE OR NOTHING FROM INSTALLMENT PAYMENTS
BECAUSE STATE AND LOCAL TAXES AREN'T DEDUCTIBLE IN COMPUTING THE MINIMUM
TAX A TREASURY OFFICIAL SAYS ABOUT 10 OF TAXPAYERS SUBJECT TO THE HIGHER
RATES MAY BE AFFECTED

GIFTS TO CHILDREN AND OTHER RELATIVES MAY BE ESPECIALLY SMART NOW

THE NEW LAW WIDENS THE GAP BETWEEN THE TOP BRACKET NOW 396 AND THE
LOWEST BRACKET OF 15 THUS MANY PEOPLE IN THE TOP BRACKETS SHOULD CONSIDER
GIVING MORE MONEY TO RELATIVES WHO PAY LESS TAX OR NONE AT ALL BECAUSE OF
LOW INCOME SAYS SIDNEY KESS CONSULTING EDITOR AT COMMERCE CLEARING HOUSE
ANOTHER REASON TO BE GENEROUS SOME TAX ADVISERS FEAR CONGRESS MAY LIMIT HOW
MUCH PEOPLE CAN GIVE FREE OF GIFT TAX

CURRENTLY YOU MAY GIVE 10000 A YEAR TO AS MANY INDIVIDUALS AS YOU WANT
WITHOUT GIFT TAX SOME ADVISERS SAY CONGRESS MAY CUT THE 10000 AMOUNT OR
CAP THE TOTAL AMOUNT OF GIFTS BUT BEFORE MAKING GIFTS TO CHILDREN UNDER 14
BEWARE OF THE KIDDIE TAX IT TAXES A YOUNG CHILD'S 1993 INVESTMENT INCOME
SUCH AS INTEREST AND DIVIDENDS ABOVE 1200 AT THE PARENTS' MARGINAL RATE
NOT THE CHILD'S

YOUNGSTERS 14 OR OLDER GENERALLY ARE TAXED AT THEIR OWN RATE NOT THEIR
PARENTS' RATE

TAXES CURB SMOKING SUBSTANTIAL INCREASES IN CIGARETTE EXCISE TAXES ARE
AMONG THE BEST WAYS TO CUT SMOKING AMONG YOUNGSTERS A NATIONAL CANCER
INSTITUTE REPORT SAYS AN INSTITUTE PANEL ALSO CONCLUDES THAT CIGARETTE
CONSUMPTION AMONG ADULTS DROPS ABOUT 4 WHEN PRICES RISE 10

STATE CORPORATE TAXES ARE IMPORTANT TO MANY FOREIGN MANUFACTURERS IN
DECIDING WHERE TO LOCATE IN THE US SAYS JAMES R HINES JR OF HARVARD'S
KENNEDY SCHOOL HIS NEW STUDY ISSUED BY THE NATIONAL BUREAU OF ECONOMIC
RESEARCH SHOWS STATE TAXES SIGNIFICANTLY INFLUENCE FOREIGN DIRECT
INVESTMENT IN THE US

SLUGGISH REVENUE GROWTH PERSISTS IN MANY REGIONS STATE TAX REVENUE ROSE
ONLY 36 IN THE SECOND QUARTER FROM A YEAR BEFORE THE CENTER FOR THE STUDY
OF THE STATES REPORTS THAT COMPARES WITH 58 GROWTH IN THIS YEAR'S FIRST
QUARTER

BANKERS FUME OVER A TRICKY PROVISION IN THE NEW TAX LAW

MORE THAN 1000 ANXIOUS BANKERS HAVE FLOODED THE AMERICAN BANKERS
ASSOCIATION WITH QUESTIONS ABOUT A NEW RULE REQUIRING THE MARKTOMARKET
ACCOUNTING METHOD THIS GENERALLY REQUIRES SECURITIES DEALERS TO VALUE
SECURITIES INVENTORIES AT MARKET PRICES NOT COST OR OTHER METHODS FOR
YEAREND TAX PURPOSES THE RULE EFFECTIVE FOR YEARS ENDING ON OR AFTER DEC
31 1993 DOESN'T APPLY TO SOME SECURITIES SUCH AS THOSE HELD FOR
INVESTMENT

BANKERS ARE ESPECIALLY UPSET BY REPORTS THEY MUST IDENTIFY WHICH ASSETS ARE
AFFECTED BY SEPT 9 THE ASSOCIATION SEEKS AT LEAST A 30DAY DELAY IT
WROTE THE TREASURY THAT MANY BANKS DO NOT RECOGNIZE THE EXTENT TO WHICH THE
PROVISION MAY APPLY TO THEM SMALLER BANKS WONDER IF THE PROVISION APPLIES
TO THEM AT ALL BECAUSE THEY DON'T VIEW THEMSELVES AS SECURITIES DEALERS

TREASURY OFFICIALS PLAN AN ANNOUNCEMENT ON THE SUBJECT SHORTLY

BRIEFS INCLUDING FEDERAL STATE AND LOCAL TAXES ROBERT GARNER OF ERNST &
YOUNG SAYS THE TOP 1994 MARGINAL RATE WILL BE 499 IN CALIFORNIA 488 IN
WASHINGTON DC AND 447 IN ILLINOIS SOME NEW YORK CITY RESIDENTS WILL
PAY MORE THAN 50  POLITICAL INFLATION THE NEW LAW ALLOWS EACH
TAXPAYER TO DESIGNATE 3 IN TAXES FOR THE PRESIDENTIAL ELECTION CAMPAIGN
FUND UP FROM 1 PREVIOUSLY 9309010014 930901 TWO AT STAFFLEASING FIRM 
ARE CONVICTED OF FRAUD

AUSTIN TEXAS TWO OWNERS OF A LARGE STAFFLEASING AGENCY ACCUSED OF
RUNNING AN INSURANCE SWINDLE IN TEXAS AND OKLAHOMA WERE CONVICTED OF FRAUD
IN A STATE DISTRICT COURT

GARY NEWSOM 54 YEARS OLD WAS SENTENCED TO 10 YEARS IN A STATE PENITENTIARY
AND A 10000 FINE JEROME WOLF 48 WAS SENTENCED TO FIVE YEARS IN PRISON
BOTH WERE FOUND GUILTY OF DEFRAUDING A STATE WORKERS COMPENSATION FUND IN
TEXAS

AS REPORTED IN A FRONTPAGE ARTICLE TWO YEARS AGO IN THE WALL STREET
JOURNAL THE COMPANY RUN BY THE TWO MEN ALLIANCE TEMPORARY SERVICES HAD
LEFT HUNDREDS OF WORKERS IN TEXAS AND OKLAHOMA WITHOUT INSURANCE
PROSECUTORS SAID ALLIANCE WHICH HIRED COMPANIES' EMPLOYEES AND LEASED THEM
BACK TO THE FIRMS HAD COLLECTED INSURANCE PREMIUMS WITHOUT PASSING THEM
ALONG TO THE COMPANY SUPPOSEDLY INSURING THE WORKERS ALLIANCE ALLEGEDLY
THEN FILED FALSE DOCUMENTS WITH THE INSURER TO COVER UP THE ACTIVITIES
PROSECUTORS SAID MESSRS NEWSOM AND WOLF ALSO USED A STRAW MAN TO OBTAIN
INSURANCE FROM THE STATE WORKERS COMPENSATION POOL WITHOUT PAYING REQUIRED
PREMIUMS

THE TWO MEN ARE ALSO DEFENDANTS IN A CIVIL LAWSUIT FILED BY THE TEXAS
WORKERS COMPENSATION ASSIGNED RISK FACILITY 9309010013 930901
DELINQUENCIES ON MORTGAGES HELD BY LIFE INSURERS FELL

THE DELIQUENCY RATE ON MORTGAGES HELD BY LIFE INSURERS FELL TO ITS LOWEST
LEVEL IN A YEAR AND A HALF BUT THE RATE ON MORTGAGES WITH RESTRUCTURED
TERMS INCREASED SHARPLY

MORTGAGE DELINQUENCIES FELL TO 61 ON JUNE 30 DOWN FROM 69 ON MARCH 30
ACCORDING TO THE AMERICAN COUNCIL OF LIFE INSURANCE BUT THE LEVEL OF
COMMERCIAL LOANS WITH RESTRUCTURING TERMS ROSE TO 83 FROM 76 LOANS THAT
HAVE BEEN RESTRUCTURED GENERALLY CARRY MORE LENIENT PAYMENT TERMS THAN WHEN
THE LOANS WERE FIRST MADE

THE SURVEY RESULTS ARE ENCOURAGING BUT INSURANCE PROFITS CONTINUE TO BE
DRAGGED DOWN BY SOURED MORTGAGES REALESTATE EXPERTS SAY INSURANCE
COMPANIES HOLD 20672 BILLION OF MORTGAGE LOANS 1269 BILLION OF WHICH
ARE DELINQUENT

INSURANCE COMPANIES HAVE FORECLOSED ON 366 BILLION OF MORTGAGES THROUGH
JUNE 30 A LEVEL SLIGHTLY AHEAD OF LAST YEAR'S PACE 9309010012 930901
INTERNATIONAL JAPANESE HOUSING STARTS

TOKYO JAPAN'S HOUSING STARTS IN JULY ROSE 46 FROM THE YEAREARLIER
MONTH THE 14TH CONSECUTIVE GAIN THE CONSTRUCTION MINISTRY REPORTED

ALTHOUGH THE RECOVERY IN HOUSING STARTS EARLIER THIS YEAR FALTERED SLIGHTLY
AFTER THE DOUBLEDIGIT GAINS IN SOME MONTHS LAST YEAR JUNE AND JULY DATA
HAVE DISPLAYED A STEADIER INCREASE IN WHAT HAS BEEN ONE OF THE ONLY POSITIVE
INDICATORS OF THE ECONOMY'S CONDITION 9309010011 930901 JUDGE RULES
AGAINST SCHOOL FUNDING LAW IN NEW JERSEY DISTRICTS

TRENTON NJ AP A SUPERIOR COURT JUDGE RULED THAT NEW JERSEY'S SCHOOL
FUNDING LAW DOESN'T SATISFY A 1990 STATE SUPREME COURT MANDATE TO REMOVE THE
DISPARITY IN FUNDING BETWEEN RICH AND POOR SCHOOL DISTRICTS

RULING ON A CHALLENGE BROUGHT BY ADVOCATES FOR POOR SCHOOLS JUDGE PAUL G
LEVY CONCLUDED THAT FURTHER JUDICIAL INTERVENTION AT THE HIGHEST LEVEL IS
NECESSARY

JUDGE LEVY SAID THE QUALITY EDUCATION ACT ADOPTED IN 1990 AND REVISED EVERY
YEAR SINCE THEN DOESN'T ASSURE THAT FUNDING FOR THE 30 SPECIAL NEEDS
DISTRICTS WILL BE EQUAL TO THAT OF WEALTHY AND MIDDLECLASS DISTRICTS WITHIN
FIVE YEARS

INSTEAD FUNDING WILL BE DEPENDENT ON LOCAL BUDGETING AND TAXING DECISIONS
IN DIRECT CONTRAVENTION TO THE SUPREME COURT'S RULING HE SAID THE JUDGE
SAID THE AID IS INSUFFICIENT TO MEET THE GOAL OF PARITY BETWEEN RICH AND
POOR SCHOOLS AND PROGRESS TO REDUCE THE DISADVANTAGES OF PUPILS IN SPECIAL
NEEDS DISTRICTS IS UNACCEPTABLY SLOW

THE LAW WAS AN EARLY INITIATIVE OF THE ADMINISTRATION OF GOV JIM FLORIO
PROPOSED BEFORE THE STATE SUPREME COURT'S LANDMARK RULING WAS HANDED DOWN

THE LAW REVAMPED THE FORMULA FOR PUBLIC SCHOOL FUNDING REMOVING MINIMUM AID
FOR EVERY DISTRICT WHICH THE COURT FOUND UNCONSTITUTIONAL AND GRADUALLY
CALLED FOR THE ELIMINATION OF STATE AID FOR THE WEALTHIEST DISTRICTS

IN 1991 HOWEVER THE DEMOCRATICLED LEGISLATURE REWORKED THE LAW TO PROVIDE
MORE MONEY FOR PROPERTYTAX RELIEF THE ORIGINAL PLAINTIFF MARILYN J
MORHEUSER OF THE EDUCATION LAW CENTER IN NEWARK WENT BACK INTO COURT TO
ARGUE THAT THE REVISIONS MADE IT IMPOSSIBLE FOR THE STATE TO MEET THE
COURT'S GOALS 9309010010 930901 STEELWORKERS TO VOTE ON GENEVA STEEL
OFFER

VINEYARD UTAH THE UNITED STEELWORKERS UNION WILL VOTE TODAY ON A
PROPOSED NEW 18MONTH CONTRACT REACHED WITH GENEVA STEEL THE NEW PACT
OFFERS WAGE INCREASES AND ADDS BONUSES FOR PRODUCTIVITY WHILE KEEPING THE
OTHER TERMS OF THE FOURYEAR AGREEMENT IT REPLACES

IF THE PLAN IS RATIFIED THE 2100 WORKERS WOULD RECEIVE AN IMMEDIATE
ACROSSTHEBOARD WAGE INCREASE OF 25 CENTS AN HOUR AND AN ADDITIONAL
15CENTSANHOUR BOOST ON THE ANNIVERSARY DATE OF THE CONTRACT COMPENSATION
UNDER THE PLAN FOR ATTAINING AN ANNUAL PRODUCTION RATE OF 15 MILLION TONS
WILL BE GUARANTEED THUS ASSURING EMPLOYEES A 33CENTSANHOUR PAYMENT IN
ADDITION TO THE ACROSSTHEBOARD INCREASES

ADDITIONAL COMPENSATION UNDER THE PLAN WILL BE BASED UPON INCREASED
PLANTWIDE PRODUCTION LEVELS IF IT SHIPS AT A 16 MILLIONTON ANNUAL RATE
WORKERS WILL RECEIVE 48 CENTS AN HOUR WHILE THEY WOULD EARN AN EXTRA 184
AN HOUR IF THE PLANT HITS THE COMPANY'S GOAL OF 25 MILLIONS TONS THE
PRESENT HOURLY WAGE FOR A MIDDLELEVEL WORKER IS 1315 AN HOUR

IN 1992 THE COMPANY SHIPPED AT A 14 MILLIONTON ANNUAL RATE BUT THIS YEAR
HAS IMPROVED TO A RATE OF 16 MILLION TO 17 MILLION TONS BASED ON THE
FIRST SEVEN MONTHS OF THE YEAR A GENEVA SPOKESMAN SAID

THE SHORT DURATION OF THE CONTRACT WILL GIVE WORKERS AND MANAGEMENT ENOUGH
TIME TO EVALUATE THE PAYFORPERFORMANCE SYSTEM THE COMPANY SAID

UNION REPRESENTATIVES COULDN'T BE REACHED FOR COMMENT HOWEVER THE UNION
MANAGEMENT ISSUED A JOINT NEWS RELEASE WITH THE COMPANY TERMING THE PROPOSAL
A WINWIN SITUATION

GENEVA STEEL MAKES HOTROLLED STEEL SHEET PLATE AND PIPE FOR SALE
PRIMARILY IN THE WESTERN AND CENTRAL US 9309010009 930901 ECONOMY 
ECONOMY IS GROWING FASTER THAN THOUGHT DATA SHOW  REVISION OF GDP
FIGURES ALSO INDICATES RECESSION NOT AS BAD AS REPORTED  BY
LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE ECONOMY'S RECOVERY IS STRONGER THAN PREVIOUSLY THOUGHT AND
THE RECESSION WAS LESS SEVERE ACCORDING TO NEW GOVERNMENT STATISTICS

IN ITS ANNUAL REVISION OF GROSS DOMESTIC PRODUCT FIGURES THE COMMERCE
DEPARTMENT SAID THAT FROM THE TROUGH OF THE RECESSION IN THE FIRST QUARTER
OF 1991 THROUGH THE SECOND QUARTER OF THIS YEAR THE ECONOMY GREW AT A 24
AVERAGE ANNUAL RATE THE DEPARTMENT HAD PREVIOUSLY PUT THE RATE AT 20

AND DURING THE RECESSION WHICH STARTED IN THE THIRD QUARTER OF 1990 AND
ENDED IN THE FIRST QUARTER OF 1991 THE ECONOMY SHRANK 16 THE NEW FIGURES
SHOW NOT THE 22 PREVIOUSLY REPORTED

THIS INDICATES WE'RE CLOSER TO A 30 ECONOMY RATHER THAN A 25 ECONOMY
SAID KURT KARL HEAD OF MACROECONOMIC FORECASTING AT THE WEFA GROUP IN
SUBURBAN PHILADELPHIA

BUT THE REPORT WHILE ENCOURAGING DOES LITTLE TO DISPEL THE NOTION THAT
THIS HAS BEEN A LETHARGIC RECOVERY ABOUT HALF THE SPEED OF OTHERS SINCE
WORLD WAR II THE BRUSH STROKES MAY BE A LITTLE DIFFERENT BUT THE PICTURE
IS STILL THE SAME SAID STUART HOFFMAN CHIEF ECONOMIST FOR PNC BANK CORP
IN PITTSBURGH THIS IS A MODEST SLOW RECOVERY

THE REVISIONS DID INCREASE THE MYSTERY OF MEAGER JOB GROWTH IN 1992 GROSS
DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US GREW
26 IN 1992 MORE THAN THE 21 FIRST REPORTED JOB GROWTH WHICH SEEMED
WEAK BEFORE SEEMS EVEN WEAKER NOW IN LIGHT OF THE NEW NUMBERS IN ALL
LIKELIHOOD PRODUCTIVITY WHICH WAS ALREADY IMPRESSIVE IN 1992 WILL BE
REVISED UPWARD BECAUSE OF THE STRONGER ECONOMIC GROWTH NINETEEN NINETYTWO
APPEARS TO HAVE BEEN A VERY STRANGE YEAR SAID LAURA TYSON HEAD OF THE
PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS THERE WAS OUTPUT BUT VERY LITTLE
IN THE AREA OF JOB CREATION

MS TYSON SAID THE HIGHER GROWTH FIGURE IS REQUIRING THE COUNCIL TO TAKE A
CLOSER LOOK TO DETERMINE IF THE TYPICAL RELATIONSHIP BETWEEN OUTPUT AND
EMPLOYMENT HAS BEEN SEVERED

SHE ALSO SAID HOWEVER THAT THE REVISED FIGURES WON'T CAUSE THE COUNCIL TO
CHANGE ITS NEW FORECAST FOR ECONOMIC GROWTH IN 1993 WHICH IS SCHEDULED TO
BE RELEASED TODAY STRONGER SECOND QUARTER THE REVISIONS ALSO MAKE
SECONDQUARTER GROWTH LOOK A BIT STRONGER THE ECONOMY EXPANDED AT A 18
ANNUAL RATE NOT 16 IN THE SECOND PERIOD THE DEPARTMENT SAID

ANALYSTS WORRIED ABOUT THE COMPOSITION OF THE GROWTH HOWEVER MUCH OF THE
REVISION CAME FROM A BUILDUP IN INVENTORIES THEY GREW 139 BILLION AFTER
INCREASING 293 BILLION IN THE FIRST PERIOD SAM KAHAN CHIEF ECONOMIST FOR
FUJI SECURITIES IN CHICAGO SAID SUCH AN ACCUMULATION COULD BE A HANDICAP
FOR GROWTH IN THE FUTURE THAT'S BECAUSE MANUFACTURERS MAY SLOW PRODUCTION
TO GET RID OF STOCKPILES

THIS DOESN'T BODE WELL FOR ECONOMIC ACTIVITY FOR THE REST OF THE YEAR MS
TYSON SAID

THE LARGEST REVISIONS OVER THE THREEYEAR PERIOD WERE CENTERED IN PERSONAL
CONSUMPTION INVESTMENT IN CAPITAL EQUIPMENT AND STATE AND LOCAL GOVERNMENT
PURCHASES MOST OTHER SECTORS OF THE ECONOMY LOOKED BETTER AS WELL HOWEVER

THE CHANGES WHICH WERE GENERALLY LARGER THAN PREVIOUS ANNUAL REVISIONS
WERE BASED ON MORE COMPLETE SOURCE DATA

REVISIONS IN THE DEPARTMENT'S FIXEDWEIGHTED PRICE INDEXES THE BROADEST
MEASURE OF INFLATION ARE SCHEDULED TO BE RELEASED SEPT 9

THE DEPARTMENT ALSO RELEASED AFTERTAX CORPORATE PROFIT FIGURES FOR THE
SECOND QUARTER THEY SHOWED THAT CORPORATE EARNINGS ROSE AT A 21 ANNUAL
RATE IN THE SECOND QUARTER AFTER GROWING AT A 16 RATE IN THE FIRST
QUARTER

ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9309010007
930901 EXXON INSURERS SET BATTLE LINES OVER OIL SPILL  COMPANY
SEEKS 1 BILLION FROM LLOYD'S OTHERS FOR THE VALDEZ CLEANUP  BY
GREG STEINMETZ AND ROBERT JOHNSON STAFF REPORTERS OF THE WALL STREET
JOURNAL

EXXON CORP AND ITS INSURERS ARE SQUARING OFF OVER THE PAYMENT OF 1 BILLION
THE OIL COMPANY IS SEEKING AS PARTIAL REIMBURSEMENT FOR MONEY IT PAID TO
CLEAN UP THE EXXON VALDEZ OIL SPILL

FOLLOWING FOUR YEARS OF DISCUSSIONS WITH THE INSURERS EXXON HAS FILED A
LAWSUIT IN STATE COURT IN HOUSTON ARGUING THAT LLOYD'S OF LONDON AND OTHER
INSURERS ARE RESPONSIBLE UNDER POLICIES THAT COVERED DAMAGES CAUSED BY OIL
SPILLED BY THE GROUNDED SUPERTANKER

MEANTIME LLOYD'S AND THE OTHER INSURERS FILED THEIR OWN SUIT AGAINST EXXON
YESTERDAY IN FEDERAL COURT IN NEW YORK THE INSURERS ARGUE THAT THE POLICIES
THEY SOLD TO EXXON DON'T COVER DAMAGE CAUSED BY THE SPILL

NEITHER EXXON NOR THE INSURERS WOULD SAY HOW MUCH MONEY IS AT ISSUE BUT
PEOPLE FAMILIAR WITH THE DISPUTE SAY EXXON IS SEEKING 1 BILLION WHILE THE
INSURERS ARGUE THEY OWE NOTHING

EXXON SAID THE COMPANY AND ITS AFFILIATES ESTIMATE THE TOTAL COST OF THE
CLEANUP AND ASSOCIATED EXPENSES TO BE ABOUT 35 BILLION FOLLOWING THE
MARCH 1989 SPILL WHEN THE CRIPPLED EXXON VALDEZ DUMPED 11 MILLION GALLONS OF
CRUDE OIL INTO ALASKA'S PRINCE WILLIAM SOUND

THE DISPUTED INSURANCE POLICIES WERE UNDERWRITTEN BY A POOL OF MORE THAN 100
INSURERS LED BY UNDERWRITERS AT LLOYD'S AMONG THE US INSURERS THAT
PARTICIPATED IN THE POOL ARE INSURANCE UNITS OF AMERICAN INTERNATIONAL GROUP
INC CIGNA CORP AND CONTINENTAL CORP

EXXON ALREADY HAS RECOVERED 400 MILLION FROM AN OFFSHORE INSURANCE
ASSOCIATION FINANCED BY SHIPOWNERS LLOYD'S ARGUES THAT THE POLICIES IT SOLD
TO EXXON DON'T COVER SPILLS ALREADY COVERED BY THE ASSOCIATION IT ALSO SAYS
IT ISN'T OBLIGATED TO PAY BECAUSE THE VALDEZ INCIDENT AROSE FROM RECKLESS
DISREGARD ON THE PART OF EXXON RATHER THAN THE SPILL BEING A FORTUITOUS
EVENT

THE INSURANCE CLEARLY COVERS THE AMOUNTS CLAIMED EXXON SAID WHILE THE
AMOUNT OF THE CLAIM IS SUBSTANTIAL IT DOES NOT APPROACH ALL OF THE COSTS
EXXON HAS INCURRED DUE TO THE ACCIDENT A SPOKESMAN SAID HE COULDN'T
COMMENT ON HOW MUCH MONEY EXXON HAS IN ITS RESERVE TO COVER SUCH COSTS

AN APPARENT ISSUE IN THE DISPUTE SAY PEOPLE FAMILIAR WITH THE MATTER IS
THAT EXXON IS SEEKING REIMBURSEMENT FOR DAMAGE CAUSED BY THE CARGO OF THE
VALDEZ IN THIS CASE OIL THE MONEY PAID BY THE INDEMNITY ASSOCIATION AROSE
FROM A POLICY THAT COVERS DAMAGE CAUSED BY THE SHIP ITSELF NOT THE CARGO

OIL INDUSTRY ANALYSTS SAID THAT EVEN IF EXXON LOSES THE LAWSUIT OR SETTLES
OUT OF COURT THE AMOUNT INVOLVED ISN'T LIKELY TO HAVE A MATERIAL IMPACT ON
THE NATION'S LARGEST OIL COMPANY OR ITS INVESTORS EVEN A BILLIONDOLLAR
SETTLEMENT WOULD BE POCKET CHANGE TO EXXON SAID BRYAN JACOBOSKI A
PAINEWEBBER ANALYST HE ADDED THAT EXXON ALREADY HAS PAID A SUBSTANTIAL
AMOUNT IN THE WAKE OF THE VALDEZ WRECK THEY PAID EVERYONE FROM SALMON
FISHERMEN TO INDIANS HE SAID

INVESTORS SEEMED TO AGREE THAT THE LAWSUIT ISN'T PARTICULARLY WORRISOME IN
COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EXXON SHARES ROSE 25 CENTS
TO 65375

ANALYSTS SAID EXXON HAS LARGE AMOUNTS OF CASH IN RESERVE TO SETTLE SUCH
CLAIMS AS THE LLOYD'S LITIGATION BUT THEY AREN'T SURE OF THE AMOUNT
CURRENTLY ON HAND EXXON HAS WRITTEN CHECKS AS LARGE AS 21 BILLION TO
SETTLE A GOVERNMENT CLAIM SAID MR JACOBOSKI ADDING THEY KEEP THAT KIND
OF MONEY ON HAND

IN 1992 EXXON HAD NET INCOME OF 48 BILLION OR 379 A SHARE ON REVENUE
OF 11648 BILLION 9309010006 930901 BIOTECH BREAKOUT DEMAND FOR MS
DRUG MAY HELP CHIRON CORP EMERGE FROM THE PACK  LOTTERY WILL SAY
WHO GETS PRODUCT ONE OF SEVERAL THAT HOLD MUCH PROMISE  SURPRISE
PAYOFF FROM CETUS  BY MARILYN CHASE STAFF REPORTER OF THE WALL
STREET JOURNAL

EMERYVILLE CALIF IN TWO WEEKS A COMPUTER WILL RANDOMLY SELECT 20000
PEOPLE FROM A LIST PROVIDED BY MANY OF THE NATION'S DOCTORS THE LUCKY
WINNERS WILL RECEIVE WHAT COULD BECOME BIOTECHNOLOGY'S NEXT BLOCKBUSTER
DRUG BETASERON THE FIRST NEW TREATMENT FOR MULTIPLE SCLEROSIS IN A
GENERATION

THE UNLUCKY WILL NUMBER 80000 OR MORE THOSE MS VICTIMS WHO COULD BENEFIT
FROM BETASERON BUT CAN'T GET IT BECAUSE ITS MANUFACTURER CHIRON CORP
CAN'T MAKE IT FAST ENOUGH ALTHOUGH BLUECAPPED VIALS OF THE CRYSTALLINE
WHITE DRUG HAVE STARTED ROLLING OFF THE ASSEMBLY LINE AT CHIRON'S FACTORY
HERE THE SUPPLY WON'T EQUAL DEMAND UNTIL 1995

WE'RE GOING LIKE CRAZY SAYS CHAIRMAN WILLIAM RUTTER IT'S A PROBLEM

IT IS ONE OTHER BIOTECH COMPANIES WOULD LOVE TO HAVE BETASERON APPROVED BY
THE FOOD AND DRUG ADMINISTRATION IN JULY FOR ABOUT A THIRD OF MS PATIENTS
ISN'T A CURE NONETHELESS IT COULD HELP MAKE CHIRON THE NEXT LONGTERM
BIOTECHNOLOGY LEADER SAYS FIRST BOSTON CORP ANALYST JEFFREY SWARZ

BETASERON IS AN UNEXPECTED WINDFALL OF CHIRON'S ONCECRITICIZED 1991
ACQUISITION OF CETUS CORP IT IS A DRUG THAT HAD FLUNKED SO MANY CLINICAL
TRIALS IN THE PAST THAT CHIRON PAID LITTLE ATTENTION TO IT AT THE TIME OF
THE TAKEOVER

BUT THERE'S A LOT MORE TO CHIRON'S RISE THAN LUCK UNDER DR RUTTER AND HIS
ONETIME STUDENT EDWARD PENHOET THE CHIEF EXECUTIVE OFFICER CHIRON
PRACTICES A UNIQUE BRAND OF SCIENTIFIC INQUIRY SOMETIMES ACHIEVING SUCCESS
WHERE OTHER COMPANIES FAILED AND ASSIDUOUSLY TRYING TO LEVERAGE EACH
IMPORTANT DISCOVERY INTO SEVERAL KINDS OF PRODUCTS

ALTHOUGH CHIRON STILL HAS A LONG WAY TO GO MANY OBSERVERS THINK IT COULD BE
FIRST TO MARKET VACCINES FOR GENITAL HERPES WHICH AFFLICTS AN ESTIMATED 25
OF US ADULTS AND FOR THE HEPATITIS C VIRUS THAT INFECTS ABOUT 150000
AMERICANS A YEAR BOTH MARKETS PARTICULARLY HERPES ARE POTENTIAL BONANZAS
CHIRON ALSO HAS A BURGEONING DIAGNOSTICTEST BUSINESS AND IS ONE OF TWO
LEADERS ALONG WITH GENENTECH INC IN THE RACE TO DEVELOP AN AIDS VACCINE

CHIRON STOCK WHICH CLOSED TUESDAY AT 62875 HAS JUMPED ABOUT 50 SINCE
APRIL TO A LOFTY MULTIPLE OF 100 TO 125 TIMES EXPECTED 1993 EARNINGS PER
SHARE MANY ANALYSTS EXPECT CHIRON TO EARN 60 CENTS A SHARE THIS YEAR AFTER
A 1992 LOSS AND SEE ITS EARNINGS INCREASING ROUGHLY SIXFOLD BY 1995 OR
1996 THEY SEE BETASERON SALES EVENTUALLY REACHING 750 MILLION TO 1
BILLION A YEAR

OUR GREATEST CHALLENGE IS HOW TO MANAGE CHIRON'S GROWTH SAYS DR RUTTER
WHO WAS BIOCHEMISTRY CHAIRMAN AT THE UNIVERSITY OF CALIFORNIA AT SAN
FRANCISCO FOR 20 YEARS BEFORE FOUNDING CHIRON

CHIRON COULD OF COURSE FAIL UTTERLY TO PRODUCE ANOTHER MAJOR DRUG AND
CONCEIVABLY PROBLEMS COULD DEVELOP WITH BETASERON THE COMPANY HAS ALREADY
FALTERED IN EXPENSIVE EFFORTS TO DEVELOP A DRUG TO ACCELERATE WOUND HEALING
AND A VACCINE AGAINST MALARIA SOME SCIENTISTS GIVE LONG ODDS AGAINST
CHIRON'S EFFORTS TO CREATE A VACCINE FOR HEPATITIS C AND EVEN LONGER ODDS
AGAINST ITS MAKING A SUCCESSFUL AIDS VACCINE CITING FORMIDABLE TECHNICAL
AND BIOLOGICAL OBSTACLES

BUT IN THE FACE OF SUCH RISKS CHIRON IS UNUSUALLY CAUTIOUS MORE THAN ANY
OTHER BIOTECH COMPANY IT MINIMIZES DEVELOPMENT AND MARKETING COSTS WITH
JOINT VENTURES SCHERING AG THE BIG GERMAN DRUG COMPANY HELPED FINANCE THE
DEVELOPMENT OF BETASERON AND HAS ASSUMED THE COST OF MARKETING IT CHIRON
GETS 30 OF BETASERON'S SALES FOR CETUS'S DEVELOPMENT ROLE AND FOR
MANUFACTURING IT SCHERING GETS THE OTHER 70 CIBAGEIGY IS FINANCING MOST
OF THE COSTS OF VACCINE RESEARCH IN RETURN FOR AT LEAST A 50 STAKE AND THE
ORTHO DIVISION OF JOHNSON & JOHNSON IS A PARTNER IN CHIRON'S DIAGNOSTICS
BUSINESS

CHIRON SPREADS RISK FURTHER BY RUNNING DIFFERENT BUSINESSES FOR DIAGNOSTICS
DRUGS VACCINES AND EYE PRODUCTS DR RUTTER'S STRATEGY IS TO AVOID BETTING
THE COMPANY ON ONE PRODUCT AS SOME OTHER BIOTECH CONCERNS HAVE DONE TO
THEIR REGRET AS A RESULT CHIRON IS SOMETIMES CRITICIZED FOR NOT GOING FOR
THE HOMERUN PROFITS THAT COME FROM OPERATING ALONE OR FOR CARRYING A
LAGGING DIVISION SUCH AS OPHTHALMICS

BUT CHIRON HAS PROSPERED BY BEING A MAVERICK AND IGNORING CRITICS AND NEVER
MORE SO THAN WITH THE ACQUISITION OF CETUS CETUS ONE OF THE FIRST BIOTECH
COMPANIES TO GO PUBLIC WAS IN FINANCIAL DISTRESS BY EARLY 1991 AFTER THE
FDA WITHHELD APPROVAL OF ITS RENAL CANCER DRUG INTERLEUKIN 2 AND THE
COMPANY BEGAN TO FOUNDER UNDER 150 MILLION OF DEBT THE CETUS BOARD ASKED
LEHMAN BROTHERS TO SEARCH FOR A BUYER OR INVESTOR

ODDLY LEHMAN NEVER FASTENED ON CHIRON AS A POTENTIAL BUYER EVEN THOUGH
CHIRON AND CETUS WERE ALMOST JOINED AT THE HIP A CLOSEDOFF SKYWAY
CONNECTED THEIR TWO HEADQUARTERS IN THIS SMALL SUBURB ACROSS THE BAY FROM
SAN FRANCISCO

ON HIS OWN DR RUTTER BEGAN SOUNDING OUT CETUS ABOUT A DEAL TO USE ITS
MANUFACTURING PLANT THEN INTEREST BROADENED DURING A CHANCE PARKINGLOT
MEETING BETWEEN TWO TOP MANAGERS FROM EACH COMPANY IN JULY 1991 THE
COMPANIES UNVEILED AN ACQUISITION THAT WOULD COST CHIRON 880 MILLION THE
MARKET INITIALLY RECOILED VIEWING THE PLAN AS AKIN TO A SMALL HEALTHY FISH
TRYING TO SWALLOW AN AILING GROUPER CHIRON'S STOCK FELL

BUT CHIRON PAID DOWN THE DEBT IT HAD TAKEN ON AND PERSUADED THE FDA TO
GIVE SWIFT MARKET APPROVAL FOR INTERLEUKIN 2 WHICH NOW HAS YEARLY SALES OF
ABOUT 35 MILLION CHIRON ALSO ENHANCED ITS PRODUCT PIPELINE WITH CETUS
DRUGS BEEFED UP ITS MANUFACTURING MUSCLE AND INHERITED A READYMADE US
AND EUROPEAN SALES FORCE ALL FROM CETUS

AND WILLYNILLY IT GOT BETASERON THE BRAND NAME FOR BETA INTERFERON
BETASERON HAD KICKED AROUND FOR YEARS IN CETUS'S LABS A SYNTHETIC VERSION
OF A NATURAL PROTEIN THAT HELPS REGULATE THE IMMUNE SYSTEM IT HAD FAILED AS
A TREATMENT FOR CANCERS AND VIRUSES IN AT LEAST 70 CLINICAL TRIALS BUT
SHORTLY AFTER THE ACQUISITION THE RESULTS CAME IN FROM A TRIAL THAT TESTED
BETASERON AGAINST THE MUSCLE SPASM AND PARALYSIS OF MS THE TESTS WERE SO
POSITIVE THEY WERE HARD TO BELIEVE

WHEN WE FIRST SAW THE DATA WE SAID CHECK THE MAGNITUDE OF THE BENEFIT 
IS IT REALLY THAT LARGE' RECALLS JEFFREY LATTS VICE PRESIDENT OF CLINICAL
RESEARCH AND DEVELOPMENT FOR BERLEX LABS A UNIT OF SCHERING THE STAFF
CHECKED AND RECHECKED THE RESULTS WHICH SHOWED THAT BETASERON COULD REDUCE
RELAPSES OF THE DISEASE BY ABOUT A THIRD AND TRIM HOSPITAL STAYS FOR UP TO
ONETHIRD OF THE 300000 MS PATIENTS IN THE US

BETASERON WAS SHOWN TO HELP ONLY PATIENTS WITH A MODERATE FORM OF THE
DISEASE CALLED RELAPSING/REMITTING MS IN THEM THE ILLNESS COMES AND GOES
CAUSING FROM ONE TO FIVE FLAREUPS A YEAR WITH SPASMS TINGLING AND
PARALYSIS THAT CAN REQUIRE HOSPITALIZATION SO FAR THE DRUG HASN'T BEEN
SHOWN TO BENEFIT SICKER PATIENTS WITH PROGRESSIVE MS

NOW THE COMPANY IS ADDING MANUFACTURING LINES AT TWO NEW PLANTS IN ST LOUIS
AND IN PUERTO RICO BERLEX SAYS THAT INCLUDING PATIENT DISCOUNTS THE
AVERAGE PRICE OF BETASERON WILL BE 9894 FOR A YEAR'S SUPPLY WELL ABOVE
SOME ORIGINAL ESTIMATES OF 5000 TO 6000 THE PRICE HAS ALREADY SPARKED
CONTROVERSY AND DRAWN A LETTER OF CONCERN TWO MEMBERS OF CONGRESS THOUGH
CHIRON SAYS IT WILL SUPPLY THE DRUG FREE TO MANY OF THE POOR AND UNINSURED

EVEN AT 9000 A YEAR MR SWARZ OF FIRST BOSTON ARGUES THE DRUG WOULD PAY
FOR ITSELF IF IT ELIMINATED ONE HOSPITAL STAY PER PATIENT BECAUSE IT COSTS
AS MUCH AS 20000 TO HOSPITALIZE AN MS PATIENT

IN TWO YEARS BIOGEN INC OF CAMBRIDGE MASS MAY BE CLOSE TO FDA APPROVAL
FOR A RIVAL COMPOUND NONETHELESS BETASERON IS EXPECTED TO GENERATE A
LONGTERM FLOOD OF OPERATING PROFIT FOR CHIRON ROUGHLY EQUAL TO 15 OF THE
DRUG'S TOTAL SALES IT MAKES THE CETUS ACQUISITION A CLASSIC COUP

IN HINDSIGHT IT TURNS OUT TO HAVE BEEN ONE OF THE GREAT DEALS SAYS MARK
SIMON AN ANALYST AT ROBERTSON STEPHENS IN SAN FRANCISCO INVESTOR
PSYCHOLOGY HAS DONE A 180DEGREE TURNAROUND

BUT SOME SCIENTISTS BELIEVE CHIRON WOULD EVENTUALLY HAVE JOINED THE RANKS OF
SUCCESSFUL BIOTECH COMPANIES ANYWAY BASED ON THE INVENTIVENESS OF ITS
RESEARCH AND DR RUTTER'S ABILITY TO MILK EACH ADVANCE FOR ALL IT IS WORTH
POTENTIALLY CHIRON'S BIGGEST CASH COW COULD RESULT FROM ITS DISCOVERY OF
THE HEPATITIS C VIRUS A BLOODBORNE MICROBE RESPONSIBLE FOR CHRONIC LIVER
DISEASE THAT CAN LEAD TO CIRRHOSIS AND CANCER

FOR MANY YEARS DRUG COMPANIES AND OTHER RESEARCH TEAMS HUNTED FOR THE
ELUSIVE VIRUS WITH NO SUCCESS CHIRON'S TEAM LED BY 42YEAROLD MICHAEL
HOUGHTON AND TWO COLLEAGUES GEORGE KUO AND QUILIM CHOO NEVER GOT THEIR
HANDS ON AN ACTUAL PIECE OF IT EITHER IN A NOVEL PIECE OF BIOTECH DETECTIVE
WORK A FIRST FOR MOLECULAR BIOLOGY THEY DECIDED TO SEARCH FOR THE
VIRUS BY MATCHING ANTIBODIES CREATED BY IT WITH MILLIONS OF CLONES OF
SUSPECT GENES SOME OF WHICH HAD TO BE RESPONSIBLE FOR PRODUCING IT THE
THEORY WAS THAT THE ANTIBODIES WOULD LOCK OR STICK TO THE TRUE VIRUS GENES
LIKE PIECES IN A PUZZLE EXPOSING THE VIRUS' BLUEPRINT

IT WAS A MESSY DANGEROUS AND OFTEN STUPEFYING SIXYEAR ORDEAL TO GET
COPIES OF THE SUSPECT GENES THE TEAM TOOK THE BLOOD AND LIVERS OF INFECTED
CHIMPS AND CLONED THE GENES OF EVERYTHING THEY FOUND GENERATING 20 MILLION
CLONES NEXT THEY SIFTED THROUGH THE BLOOD OF HEPATITIS PATIENTS FOR THE
ANTIBODIES

GOWNED AND GOGGLED THE TEAM TOOK HAIRY RISKS WE WEREN'T JUST HANDLING
INFECTED BLOOD BUT ALSO HOMOGENIZING POWDERED CHIMP LIVER WHICH GIVES OFF
TREMENDOUS AEROSOLS DR HOUGHTON RECALLS FINALLY THE TEAM HIT A GENE
THAT DEFIITELY LOCKED INTO THE STRUCTURE OF THE ANTIBODIES THEN ANOTHER
GENE AND ANOTHER EVENTUALLY THEY MAPPED THE ENTIRE GENETIC CODE OF THE
HEPATITIS C VIRUS WITHOUT EVER HAVING FOUND IT

STRANGELY ENOUGH THERE WASN'T A REAL EUREKA MOMENT SAYS DR HOUGHTON
HIS FIRST REACTION WAS THIS CLONE LOOKS SO GOOD I CAN'T BELIEVE IT  
AFTER SO MANY YEARS OF FRUSTRATION WE REALLY COULDN'T BELIEVE WE HAD IT
HEPATITIS PROFITS CHIRON'S DISCOVERY OF THE HEPATITIS C VIRUS FANNED OUT
INTO A SCREENING TEST A CONFIRMATORY TEST AND PLANS FOR A VACCINE AND
THERAPEUTIC DRUGS THE HEPATITIS C DIAGNOSTIC TESTS GENERATED TOTAL
WORLDWIDE SALES OF ABOUT 400 MILLION LAST YEAR FOR ALL SELLERS INCLUDING
ORTHOCHIRON AND CHIRON'S LICENSEE ABBOTT LABORATORIES LED BY THE
HEPATITIS C TESTS CHIRON'S OVERALL DIAGNOSTICS PROGRAM CONTRIBUTES ROUGHLY
20 MILLION TO THE COMPANY'S OPERATING PROFIT EACH QUARTER CHIRON WILL
LEVERAGE THE SUCCESS OF ITS SCREENING TEST WITH VACCINE SOON TO ENTER
LARGESCALE CLINICAL TRIALS OF ITS ABILITY TO PREVENT INFECTION

THE COMPANY IS NOW EXPERIMENTING WITH A NEW TECHNOLOGY TO DEVELOP MUCH MORE
POWERFUL DIAGNOSTIC TESTS CALLED DNA PROBES WHICH MEASURE THE AMOUNT OF A
VIRUS IN THE BLOOD ASSESS THE STAGE OF DISEASE AND WEIGH EFFECTIVENESS OF
NEW DRUGS

CHIRON'S VACCINE STRATEGY FOCUSES ON SEXUALLY TRANSMITTED DISEASES AGAIN
BECAUSE OF THE OPPORTUNITY TO CREATE TESTS AND TREATMENTS AS WELL AS
VACCINES FIRST OUT OF THE LAB AND INTO CLINICAL USE MOST LIKELY WILL BE
CHIRON'S VACCINE FOR HERPES SIMPLEX TYPE 2 KNOWN AS GENITAL HERPES SPURRED
BY WORK SHOWING THE VACCINE COULD LESSEN OUTBREAKS IN PEOPLE ALREADY
INFECTED

UNFORTUNATELY THIS VIRUS IS A GROWTH INDUSTRY IT'S INCREDIBLY PREVALENT
SAYS RESEARCHER LAWRENCE COREY OF THE UNIVERSITY OF WASHINGTON AT SEATTLE
BECAUSE DR COREY'S STUDIES SUGGEST 25 OF MIDDLECLASS ADULTS ARE ALREADY
INFECTED CHIRON BELIEVES THE OTHER 75 ARE POTENTIAL CANDIDATES FOR
PREVENTIVE SHOTS FOR THOSE ALREADY INFECTED CHIRON IS DESIGNING A
DIFFERENT VERSION OF ITS HERPES VACCINE TO USE AS AN IMMUNESYSTEM BOOSTER

COMMERCIALLY THE RISKIEST VACCINE VENTURE INVOLVES THE ONE FOR AIDS AT THE
INTERNATIONAL AIDS CONFERENCE IN BERLIN LAST MONTH CHIRON'S VACCINE SHOWED
PROGRESS IN SPARKING ANTIBODIES THAT NEUTRALIZE VARIED STRAINS OF
HIVPLACING CHIRON NECKANDNECK WITH GENENTECH AS ONE OF TWO CERTAIN
CANDIDATES FOR THE NEXT STEP A NATIONAL TEST OF VACCINES TO PREVENT HIV
INFECTION

ANALYSTS ARE CAUTIOUS IN EVALUATING THE COMMERCIAL POSSIBILITIES OF THESE
VACCINES SAYING THE HEPATITIS VACCINE WILL BE DIFFICULT TO DEVELOP AND
NOTING THAT THE AIDS VIRUS IS AN ELUSIVE MUTATING TARGET NONETHELESS
FIRST BOSTON'S MR SWARZ ONE OF THE BIG BULLS ON CHIRON'S STOCK ESTIMATES
THAT VACCINES DEVELOPED WITH CIBAGEIGY COULD GENERATE YEARLY SALES OF 1
BILLION BY THE END OF THE DECADE HALF OF WHICH WILL FLOW TO CHIRON

FOR DR RUTTER LEVERAGING THE MARKET OPPORTUNITIES INHERENT IN THINGS LIKE
SEXUALLY TRANSMITTED DISEASES IS THE FUN OF BIOTECHNOLOGY HE IS SPENDING
145 MILLION THIS YEAR ON RESEARCH AND DEVELOPMENT AND 100 MILLION ON
PLANT AND EQUIPMENT A COMBINED 70 TO 80 OF WALL STREET'S 1993 REVENUE
OUTLOOK FOR CHIRON

DR RUTTER BELIEVES CHIRON AND OTHER BIOTECH COMPANIES WILL ALSO GENERATE
FUTURE GROWTH BY DISCOVERING MULTIPLE USES FOR COMPOUNDS THAT NOW APPEAR TO
HAVE ONLY A SINGLE NICHE AND PREDICTS BIOTECH'S GREATEST IMPACT IS YET TO
COME

SUZANNE CUSHMAN A 37YEAROLD FORMER MARKETING SPECIALIST DIAGNOSED WITH MS
FIVE YEARS AGO IS MORE CONCERNED WITH THE HERE AND NOW I'M EAGERLY
ANTICIPATING BETASERON A LOTTERY SEEMS AN UNUSUAL WAY TO MAKE A DRUG
AVAILABLE SHE SAYS BUT SHE ADDS THAT SHE INTENDS TO ENTER AND WIN SHE
EVEN PLANS A SMALL PARADE TO CELEBRATE THE EVENT IN HER HOMETOWN IN BODEGA
BAY CALIF

I WILL WALK WITH MY CANE SHE SAYS BUT I'LL WALK 9309010005 930901
WHAT'S NEWS  BUSINESS AND FINANCE

THE ECONOMY'S RECOVERY IS STRONGER THAN PREVIOUSLY THOUGHT AND THE RECESSION
WAS LESS SEVERE ACCORDING TO GOVERNMENT STATISTICS THE ECONOMY GREW AT A
24 AVERAGE ANNUAL RATE FROM THE TROUGH OF THE RECESSION IN 1991 THROUGH
THE SECOND QUARTER OF 1993 THE RATE WAS PREVIOUSLY PUT AT 20 JOB GROWTH
SEEMS EVEN WEAKER NOW IN LIGHT OF THE NEW NUMBERS

CONSUMER CONFIDENCE SLIPPED IN AUGUST ACCORDING TO THE CONFERENCE BOARD
WIPING OUT ALL THE GAINS MADE SINCE THE PRESIDENTIAL ELECTION

KUWAIT IS HOLDING TALKS WITH SEVERAL WESTERN OIL COMPANIES THAT COULD LEAD
TO PRECEDENTSETTING AGREEMENTS ON SHARING PRODUCTION IN ITS VAST OIL
FIELDS THE ACCORDS WOULD REPRESENT A REVERSAL OF KUWAIT'S NATIONALIZATION
OF ITS OIL FIELDS IN 1975

CHEVRON GOT ESSENTIAL RUSSIAN GOVERNMENT BACKING FOR A PROPOSED 12 BILLION
PIPELINE ACROSS SOUTHERN RUSSIA TO EXPORT OIL FROM THE COMPANY'S GIANT
TENGIZ FIELD IN KAZAKHSTAN BUT DESPITE THE PROGRESS BIG FINANCIAL
TECHNICAL AND DIPLOMATIC HURDLES REMAIN

EXXON AND ITS INSURERS ARE SUING EACH OTHER OVER AN ESTIMATED 1 BILLION
THAT THE OIL COMPANY IS SEEKING AS PARTIAL REIMBURSEMENT FOR MONEY IT PAID
TO CLEAN UP THE EXXON VALDEZ OIL SPILL LLOYD'S OF LONDON AND OTHER INSURERS
SAID POLICIES THEY SOLD TO EXXON DO NOT COVER DAMAGE CAUSED BY THE SPILL

MANY US COMPANIES' PROFITS WILL BE CUT BY A HIGHERTHANEXPECTED 33 THIS
YEAR AND AS MUCH AS 45 NEXT YEAR UNDER A RETIREE HEALTHBENEFITS
ACCOUNTING RULE A SURVEY SHOWS

HONEYWELL MUST PAY 12 BILLION TO LITTON INDUSTRIES FOR VIOLATING A LITTON
PATENT ON AN AIRPLANEGUIDANCE DEVICE A FEDERAL COURT JURY SAID BUT THE
JUDGE HAS YET TO FORMALLY ENTER A JUDGMENT IN THE CASE AND HONEYWELL SAID
IT WILL APPEAL ANY SIGNIFICANT AWARD

DELINQUENCIES ON INSTALLMENT LOAN PAYMENTS ARE AT THE LOWEST LEVEL IN YEARS
BODING WELL FOR A CREDIT EASING FOR OTHERS READY TO RESUME SPENDING

THE EXCLAYTON HOMES CONTROLLER BLAMED BY CLAYTON FOR ITS RECENT TAX WOES
PLEADED GUILTY IN THE LATE 1970S TO CRIMINAL CORPORATE TAX CHARGES AND WAS
ORDERED TO PAY OVER 30000 IN A CIVIL SUIT FOR EMBEZZLEMENT

ALLSTATE CONSISTENTLY DISCRIMINATES AGAINST LOWINCOME AND MINORITY
HOMEOWNERS IN ITS HOMEINSURANCE PRACTICES AN ADVOCACY GROUP SAID

TRADING IN FUTURE COMMUNICATIONS' HIGHFLYING STOCK WAS HALTED YESTERDAY EVEN
AS THE CABLE TV AND PROGRAMMING COMPANY SAID IT RESOLVED A 10YEAR LEGAL
DISPUTE THAT COULD HAVE RESULTED IN THE SEIZURE OF ITS ASSETS NASDAQ
OFFICIALS ARE DETERMINING IF FUTURE MEETS LISTING QUALIFICATIONS

NEWS'S FOX SAID IT WILL MAKE LIVE BROADCASTS AND VIEWER CALLINS A STAPLE OF
ITS NEW BASICCABLE CHANNEL FX

TOKYO STOCKS ROSE SETTLING ABOVE THE 21000 LEVEL FOR THE FIRST TIME IN
ALMOST THREE MONTHS AMID CONTINUED EXPECTATIONS FOR LOWER JAPANESE RATES
FRANKFURT STOCKS JUMPED 12 TO A THREEYEAR HIGH PARTLY ON FOREIGN BUYING
PARIS STOCK PRICES RALLIED SETTING A RECORD FOR THE SECOND DAY IN A ROW

CANADA'S ECONOMY RECORDED A MODERATE ADVANCE IN THE APRILJUNE PERIOD BUT
JOB PROSPECTS REMAINED BLEAK FOR THE UNEMPLOYED GROSS DOMESTIC PRODUCT ROSE
08 IN THE SECOND QUARTER OR AT AN ANNUAL RATE OF 34

KODAK ACCUSED FUJI OF DUMPING COLOR PHOTOGRAPHIC PAPER IN THE US AT PRICES
AS LOW AS ONEFOURTH OF WHAT IT CHARGES IN JAPAN

BONDS LEHMAN BROTHERS TREASURY INDEX 558267 UP 1058

COMMODITIES OIL 1829 A BARREL OFF 44 CENTS DOW JONES FUTURES INDEX
12673 OFF 061 SPOT INDEX 12352 OFF 033

DOLLAR 10475 YEN UP 095 16765 MARKS UP 00041 9309010004 930901
CREDIT MARKETS TREASURY PRICES END LOWER IN CHOPPY TRADING BATTERED BY
REVISED ECONOMIC GROWTH FIGURES  BY THOMAS D LAURICELLA AND
JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL

NEW YORK PRICES OF TREASURY SECURITIES ENDED MOSTLY LOWER AFTER BEING
WHIPPED ABOUT FIRST BY NEGATIVE AND THEN BY POSITIVE NEWS

THE 10YEAR NOTE DROPPED 1/8 POINT OR 125 FOR A BOND WITH 1000 FACE
VALUE TO 102 7/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE
PRICE ROSE TO 545 FROM 543 ON MONDAY MOST OTHER SECURITIES ALSO
DROPPED BUT THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/4 TO 102
2/32 TO YIELD 610 DOWN FROM 611

EARLY IN THE DAY PRICES FELL SHARPLY ON NEWS OF STRONGERTHANEXPECTED
ECONOMIC GROWTH BOND INVESTORS OFTEN REACT NEGATIVELY TO GOOD ECONOMIC NEWS
BECAUSE THEY FEAR A RAPIDLY GROWING ECONOMY WILL STOKE INFLATION WHICH
REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN PRICES ROSE A
BIT SHORTLY AFTER MIDDAY ON A PURCHASE OF NOTES AND BONDS BY THE FEDERAL
RESERVE

NEW GOVERNMENT FIGURES SHOWED THE ECONOMY GROWING FASTER THAN ORIGINALLY
REPORTED IN THE SECOND QUARTER GDP ROSE AT A REVISED ANNUAL RATE OF 18
NOT 16 AS IN THE INITIAL REPORT

MANY IN THE MARKET WERE SURPRISED BY THE SECONDQUARTER FIGURE EVERYONE
WAS LOOKING FOR A DOWNWARD REVISION TO GDP WHICH WE DIDN'T GET AND GROWTH
FROM THE PRIOR QUARTERS WAS ALSO A LITTLE BIT FASTER SAID LAWRENCE LEUZZI
HEAD OF FIXEDINCOME SECURITIES AT SG WARBURG & CO SO THAT WAS A BIT OF
A DISAPPOINTMENT

SOME TRADERS BESIDES EXPECTING SOFT ECONOMIC NEWS HAD BEEN STOCKING UP ON
SECURITIES IN ANTICIPATION THAT THE FED WOULD HAVE TO BUY NOTES AND BONDS IN
THE OPEN MARKET INSTEAD THEY WERE GREETED BY CUSTOMER SELLING ESPECIALLY
AMONG SHORTER SECURITIES

SELLING WAS CONCENTRATED AMONG SHORTER MATURITIES AS THE GDP NEWS
DISAPPOINTED THOSE BETTING ON A REVIVAL OF SPECULATION THAT THE FED WOULD
HAVE TO CUT SHORTTERM INTEREST RATES IN RESPONSE TO A RECENT RUN OF
WEAKERTHANEXPECTED DATA

THESE NUMBERS PROBABLY KEEP THE FED ON HOLD FOR LONGER THAN HAD BEEN
THOUGHT BEFORE SAID SAMUEL KAHAN CHIEF ECONOMIST AT FUJI SECURITIES INC
IN CHICAGO

TRADERS WERE ENCOURAGED TO MAKE YIELDCURVE FLATTENING TRADESBETS THAT THE
GAP BETWEEN LONGTERM AND SHORTTERM YIELDS WILL NARROW ONE WAY TO MAKE
SUCH A BET IS TO BUY THE 30YEAR BOND WHILE SELLING SHORTERTERM SECURITIES

THE 30YEAR BOND WAS ALSO LIFTED BY THE FED'S PURCHASE OF NOTES AND BONDS IN
THE OPEN MARKET TRADERS SAID

ANALYSTS HAD EXPECTED THE FED ACTION KNOWN AS A COUPON PASS FOR SEVERAL
WEEKS THE MOVE HAD NO MONETARY POLICY SIGNIFICANCE BUT WAS NECESSARY TO
COUNTER A SEASONAL SHORTAGE OF RESERVES IN THE BANK SYSTEM ACCORDING TO
ECONOMISTS

WHILE THE EXACT SIZE OF THE COUPON PASS WON'T BE KNOWN UNTIL THE FED'S
REGULAR NEWS CONFERENCE NEXT WEEK TRADERS BELIEVE ABOUT 4 BILLION OF
SECURITIES LEFT DEALER HANDS THE ANNOUNCEMENT OF THE PASS YESTERDAY
AFTERNOON HELPED TO LIFT THE MARKET FROM ITS LOWS

THE MARKET ALSO FOUND SOME SUPPORT AS TRADERS TOOK A SECOND LOOK AT THE GDP
REPORT

FOR THOSE WHO FEEL THAT PAST IS PROLOGUE THERE IS A FEELING THAT THE
ECONOMIC PACE MAY BE FASTER THAN THE NUMBERS SHOW SAID FUJI'S MR KAHAN
BUT ON THE OTHER HAND IF ONE LOOKS AT THE COMPONENTS OF GDP IN THE SECOND
QUARTER A SOLID CHUNK OF THE GROWTH WAS DUE TO HIGHER INVENTORIES AND
GOVERNMENT SPENDING

AS INVENTORIES ARE DRAWN DOWN AND GOVERNMENT SPENDING REVERSES ITS INCREASE
THOSE TWO FACTORS ARE LIKELY TO RETARD GROWTH IN THE THIRD QUARTER MR
KAHAN SAID

BUT EVEN THE FED PURCHASE AND THE POSITIVE INTERPRETATIONS OF THE GDP DATA
WERE UNABLE TO LIFT SHORT AND INTERMEDIATETERM SECURITIES INTO POSITIVE
TERRITORY

MARKET WATCHERS NOTE THAT WITH THE EXCEPTION OF THE 30YEAR BOND WHICH
CONTINUES TO HAVE ITS OWN PECULIAR DYNAMICS THE TREASURY MARKET HAS SETTLED
INTO WELLDEFINED RANGES OVER THE PAST WEEK

WE'VE PRETTY MUCH FULLY ADJUSTED TO THE DISAPPOINTING TONE OF THE ECONOMIC
REPORTS OVER THE LAST MONTH OR SO AND TO GO MUCH FURTHER WE ARE GOING TO
HAVE TO HAVE THE VIEW THAT THINGS HAVE SOFTENED EVEN MORE SAID DANA
JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS INC

I DOUBT THAT WE CAN MAKE MUCH PROGRESS TO LOWER YIELDS WITHOUT A
WEAKERTHANEXPECTED EMPLOYMENT REPORT SAID MR LEUZZI AT SG WARBURG
WE MAY BE IN A SITUATION WHERE WE'VE CARVED OUT OUR RANGES

ONLY 4945 MILLION OF CORPORATE DEBT WAS SOLD YESTERDAY AND NO DEALS WERE
SCHEDULED FOR THE REST OF THIS WEEK

THAT SUGGESTS THAT THE NEW ISSUES MARKET IS BASICALLY CLOSED UNTIL AFTER THE
LABOR DAY HOLIDAY HOWEVER IT'S POSSIBLE THAT COMPANIES WILL OFFER DEBT
TODAY IF CORPORATE TREASURERS FEAR INTEREST RATES WILL MOVE HIGHER BY NEXT
WEEK ONE SYNDICATE OFFICIAL SAID

TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY QUIET WITH PRICES
FOLLOWING THOSE OF TREASURYS

NEW JUNKBOND ISSUES MET SOME DIFFICULTY ROHR INC ANNOUNCED THAT ITS
PLANNED DEBT ISSUE WOULDN'T BE PRICED UNTIL NEXT WEEK ALTHOUGH MOST MARKET
OFFICIALS EXPECTED IT THIS WEEK THE YIELD ON FOREST OIL CORP WAS SHARPLY
INCREASED TO GRAB INVESTORS' INTEREST IN THIS SLEEPY MARKET INVESTORS SAID

DEALERS CONTINUED TO SELL JUNK BONDS TO LIGHTEN THEIR OWN INVENTORIES TO
MAKE ROOM FOR THE UPCOMING CALENDAR OF NEW ISSUES THE TRADER ADDED

ROHR HAD BEEN EXPECTED TO PRICE 125 MILLION OF 10YEAR SENIOR SUBORDINATED
NOTES THROUGH DILLON READ & CO THIS WEEK THE DEAL WAS POSTPONED TO WAIT
FOR A SECURITIES & EXCHANGE COMMISSION CLEARANCE AND FOR INVESTORS TO RETURN
FROM VACATION ONE SYNDICATE OFFICIAL SAID

FOREST OIL HAD MARKETED ITS 100 MILLION OFFERING OF 10YEAR SENIOR
SUBORDINATED NOTES WITH A COUPON OF 105 TO 1075 THE DEAL WAS PRICED
LATE YESTERDAY WITH AN 11375 YIELD

THE NOTES WERE PRICED AT 99259 AND ARE NONCALLABLE FOR FIVE YEARS RATED
SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD
& POORS CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY LEHMAN
BROTHERS

INVESTORS REPORTEDLY WERE WARY OF THE COMPANY'S OFFERING THAT'S BECAUSE ITS
OPERATING MARGINS AFTER ADJUSTING FOR NONRECURRING ITEMS ARE NEGATIVE AND
EARNINGS WERE INSUFFICIENT TO COVER FIXED CHARGES IN 1992 AND 1993 AN
ANALYST SAID

ANOTHER ANALYST NOTED THAT THE LIFE SPANS OF FOREST'S NATURAL GAS AND CRUDE
OIL RESERVES ARE ABOUT SIX AND FIVE YEARS RESPECTIVELY AND ARE DECLINING
THE RESERVES ARE SHORTER THAN THE LIFE OF THE BONDS THE COMPANY IS ISSUING
HE SAID

MUNICIPAL BONDS FINISHED UNCHANGED TO 1/4 POINT HIGHER IN CALM TRADING
HOLDING FIRM DESPITE THE UNEXPECTEDLY STRONG SECONDQUARTER GROSS DOMESTIC
PRODUCT DATA

ALTHOUGH SOME ISSUES MANAGED TO INCH UP MARKET PARTICIPANTS REMAIN
RELUCTANT TO READ TOO MUCH INTO THE PRICE ACTION

MUNIS TEND TO STRENGTHEN SUBSTANTIALLY WHENEVER SUPPLY TAPERS OFF BUT
BUYING SO FAR THIS WEEK HAS BEEN AT BEST SPORADIC THE PRIMARY MARKET IS
TAKING A BREATHER AND THIS WEEK'S NEW ISSUES LOOK LIKE THEY WILL TOTAL LESS
THAN 3 BILLION THAT WOULD BE DOWN SUBSTANTIALLY FROM THE RECENT WEEKLY
VOLUME OF ABOUT 5 BILLION

THE LARGEST NEW ISSUE YESTERDAY WAS THE UNIVERSITY OF CALIFORNIA'S 4726
MILLION OF REFUNDING BONDS A JP MORGAN SECURITIES INC GROUP APPARENTLY
WON THE OFFERING WITH A BID SETTING THE TRUE INTEREST COST AT 53772 AND
GAVE THE BONDS YIELD RANGING FROM 400 IN 1997 TO 540 IN 2016 AND 2018
THE ISSUE IS INSURED BY AMBAC INDEMNITY CORP AND CARRIES TRIPLEA RATINGS
FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP

MORTGAGE SECURITIES ENDED LOWER ACROSS THE BOARD AMONG COUPONS FOR
SEPTEMBER DELIVERY GINNIE MAE 6 SECURITIES FELL 3/32 TO 98 21/32 FREDDIE
MAC GOLD 6 AND FANNIE MAE 6 SECURITIES BOTH DROPPED 5/32 TO 98 21/32 AND
98 17/32 RESPECTIVELY

MANY PROFESSIONAL MONEY MANAGERS ARE AVOIDING THE MARKET FEARING THAT THEIR
MORTGAGE SECURITIES WILL BE CALLED EARLY AS HOMEOWNERS REFINANCE LOANS AND
RETIRE THE SECURITIES CREATED FROM THEIR LOANS

SOME MANAGERS ARE EMPLOYING A BARBELL STRATEGY TO BUY BONDS IN THE SECTOR
CONCENTRATING THEIR BUYING AT EXTREME ENDS OF THE COUPON SPECTRUM AND
AVOIDING MIDDLE COUPONS WHICH ARE CONSIDERED MOST VULNERABLE TO
PREPAYMENTS

IN THE ASSETBACKED MARKET A 172 MILLION ISSUE OF ADVANTA MORTGAGE CORP
USA HOME EQUITY LOAN CERTIFICATES WERE PRICED IN FIVE PARTS THROUGH
UNDERWRITERS LED BY MERRILL LYNCH & CO ALL CERTIFICATES IN THE ADVANTA
CORP UNIT'S ISSUE WERE RATED TRIPLEA BY MOODY'S AND S&P BASED ON A 100
INSURANCE WRAP FROM MUNICIPAL BOND INVESTORS ASSURANCE CORP 9309010003
930901 WHAT'S NEWS  WORLD WIDE

MIDEAST TALKS RESUMED AMID RISING EXPECTATIONS FOR A HISTORIC ACCORD

EMOTIONCHARGED NEGOTIATIONS REOPENED IN WASHINGTON WITH CONFIDENT
PALESTINIANS AND ISRAELIS PREDICTING THAT AN AGREEMENT TO ESTABLISH
PALESTINIAN SELFRULE WOULD BE CONCLUDED WITHIN DAYS MOREOVER THE CHIEF
POLITICAL ADVISER TO PLO LEADER ARAFAT SAID HE EXPECTED STATEMENTS OF FULL
MUTUAL RECOGNITION TO BE ISSUED THIS WEEK BY ARAFAT AND ISRAELI PRIME
MINISTER RABIN SECRETARY OF STATE CHRISTOPHER PRAISED THE ACCORD THAT WOULD
PUT THE PLO IN CHARGE OF DAYTODAY LIFE IN GAZA AND IN JERICHO AS A
CONCEPTUAL BREAKTHROUGH ADDING THAT THE US WAS PREPARED TO PROVIDE
FINANCIAL AID

MOST OF THE WEST BANK AND GAZA WAS CLOSED DOWN BY A STRIKE CALLED BY ISLAMIC
FUNDAMENTALISTS AND DISSIDENT PLO FACTIONS TO PROTEST THE PEACE TALKS
MERCHANTS IN JERICHO DEFIED THE STRIKE

BOSNIA'S FACTIONS RESUMED GENEVA TALKS ON A PLAN TO ESTABLISH THREE ETHNIC
REGIONS IN THE FORMER YUGOSLAV REPUBLIC THE BOSNIAN SERBS AND THE
MUSLIMLED GOVERNMENT AGREED TO HALT FIGHTING AND SERBS PREDICTED THE
MUSLIMS WOULD AGREE TO THE PROPOSED DIVISION PERHAPS AS EARLY AS TODAY

MUSLIM CIVILIANS IN MOSTAR PERMITTED THE DEPARTURE OF ABOUT 60 SPANISH
PEACEKEEPERS WHO HAD BEEN DETAINED FOR SIX DAYS AS A SHIELD AGAINST RENEWED
CROAT ATTACKS ON THE BESIEGED BOSNIAN TOWN

SURGING SEAS CRASHED ONTO THE FRAGILE OUTER BANKS ISLAND CHAIN OF NORTH
CAROLINA AS HURRICANE EMILY SLOWLY BRUSHED BY WITH WINDS OF UP TO 115 MPH
HURRICANE WARNINGS WERE IN EFFECT ALONG THE NORTHERN COAST OF THE STATE TO
DELAWARE

TWO TEXAS BIOCHEMISTS SAID THEY SYNTHESIZED MOLECULES THAT CAN TRIGGER
CHEMICAL REACTIONS AS EFFICIENTLY AS NATURAL ENZYMES THE DEVELOPMENT RAISED
THE POSSIBILITY THAT DRUG FIRMS MIGHT BE ABLE TO MAKE ARTIFICIAL ENZYMES FOR
MEDICAL USES THAT WOULD DUPLICATE NATURAL ENZYMES THAT ARE TOO DIFFICULT TO
MAKE

DEFENSE SECRETARY ASPIN WILL UNVEIL RESULTS TODAY OF HIS REVIEW OF HOW TO
RESHAPE THE DEFENSE ESTABLISHMENT MEANWHILE THE PENTAGON IS PLANNING TO
FORM A TASK FORCE ON DEFENSERELATED ANTITRUST MATTERS THE POLICY CONTRASTS
WITH THE BUSH ADMINISTRATION'S HANDSOFF APPROACH ON DEFENSE MERGERS

RESEARCHERS FOUND A SUBTLE ABNORMALITY IN SKIN CELLS OF PEOPLE WITH
ALZHEIMER'S DISEASE PERHAPS ENABLING EARLY DIAGNOSIS OF THE DISORDER WITH
SKIN TESTS THE ABNORMALITY APPEARS TO OCCUR IN MANY KINDS OF CELLS
SUGGESTING IT OCCURS IN BRAIN CELLS AND IS PART OF THE NEURONDAMAGING
PROCESS THAT CAUSES ALZHEIMER'S

VICE PRESIDENT GORE WILL PROPOSE MAKING IT EASIER TO FIRE INCOMPETENT
FEDERAL WORKERS AND ESTABLISHING A SYSTEM TO ELIMINATE EXCESSIVE REGULATION
THE MEASURES ARE AMONG HUNDREDS OF SUGGESTIONS GORE WILL UNVEIL TUESDAY AS
PART OF THE CLINTON ADMINISTRATION'S PLAN TO REINVENT GOVERNMENT

THE VENEZUELAN CONGRESS VOTED TO BAR SUSPENDED PRESIDENT PEREZ FROM
RETURNING TO OFFICE EVEN IF HE IS ACQUITTED OF CORRUPTION CHARGES PEREZ WAS
SUSPENDED BY THE CONGRESS IN MAY TO STAND TRIAL FOR EMBEZZLEMENT AND MISUSE
OF PUBLIC FUNDS THE LEGISLATORS' VOTE MAKES HIS SUSPENSION PERMANENT

YELTSIN'S CHIEF OF STAFF TOLD A RUSSIAN NEWS AGENCY THAT A 176SEAT
LEGISLATIVE BODY WOULD BE FORMED NEXT WEEK TO FUNCTION AS THE UPPER CHAMBER
OF THE CURRENT LEGISLATURE THERE WAS NO IMMEDIATE REACTION TO THE
PRESIDENT'S PLAN FROM PARLIAMENT SPEAKER KHASBULATOV OR OTHER TOP LAWMAKERS
WHO HAVE OPPOSED ANY DILUTION OF THEIR POWER

LEADERS OF THE WORLD'S RELIGIONS AGREED ON A GLOBAL ETHIC THAT CALLS
DISARMAMENT THE NEWEST COMMANDMENT AND CONDEMNS ENVIRONMENTAL ABUSES AND
SEXUAL DISCRIMINATION THE DECLARATION WILL BE FORMALLY SIGNED SATURDAY IN
CHICAGO

NIGERIA'S NEW UNELECTED LEADER VOWED TO COMPLETE THE COUNTRY'S TRANSITION TO
FULL CIVILIAN RULE SOON IN HIS FIRST NATIONWIDE ADDRESS SINCE HE WAS
APPOINTED LAST WEEK ERNEST SHONEKAN URGED TRADE UNIONS TO END A
THREEDAYOLD PRODEMOCRACY STRIKE

AZERBAIJAN'S PROVISIONAL LEADER SAID 97 OF VOTERS HAD EXPRESSED NO
CONFIDENCE IN FUGITIVE PRESIDENT ELCIBEY IN A WEEKEND REFERENDUM ELCIBEY
FLED TO THE COUNTRYSIDE IN JUNE AMID AN ARMY REBELLION 9309010002 930901
RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

HEALTH CARE REIT INC AN OFFERING OF 25 MILLION COMMON SHARES VIA ALEX
BROWN & SONS INC DEAN WITTER REYNOLDS INC AND KEMPER SECURITIES INC

KEANE INC AN OFFERING OF TWO MILLION COMMON SHARES VIA ROBERT W BAIRD &
CO TUCKER ANTHONY INC AND JANNEY MONTGOMERY SCOTT INC

WHITMAN CORP A SHELF OFFERING OF UP TO 300 MILLION OF DEBT SECURITIES
9309010001 930901 BUSINESS BRIEF ALLTEL CORP FIRM TO BUY
HEALTHDATA CONCERN IN SWAP OF STOCK

ALLTEL CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE TDS HEALTHCARE
SYSTEMS CORP A CLOSELY HELD PATIENTCARE INFORMATION SYSTEMS COMPANY BASED
IN ATLANTA

ALLTEL BASED IN LITTLE ROCK ARK SAID IT WILL SWAP TWO MILLION OF ITS
COMMON SHARES FOR ALL SHARES OUTSTANDING OF TDS CAPITAL STOCK MAKING TDS A
WHOLLY OWNED SUBSIDIARY IT EXPECTS TO COMPLETE THE ACQUISITION THIS YEAR
PENDING CERTAIN APPROVALS AND CONDITIONS

IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE TELECOMMUNICATIONS
COMPANY'S COMMON SHARES CLOSED AT 2975 UP 50 CENTS

ALLTEL SAID IT DOESN'T EXPECT THE ACQUISITION WILL DILUTE PERSHARE
EARNINGS EXCLUDING ONETIME MERGER EXPENSES THE COMPANY SAID IT WILL
OPERATE TDS AS SYSTEMATICS HEALTHCARE SERVICES INC A NEW SUBSIDIARY OF ITS
SYSTEMATICS INFORMATION SERVICES UNIT TDS HAS ANNUAL OPERATING PROFIT OF
ABOUT 10 MILLION ON REVENUE OF ABOUT 75 MILLION THE COMPANY SAID
9309010166 930802 INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD
L HOLMAN

JAPAN'S HOUSING STARTS IN JUNE ROSE 41 TO 133712 FROM A YEAR EARLIER
MARKING THE 13TH MONTHLY INCREASE IN A ROW

A REBOUND IN CONDOMINIUM STARTS LED TO A SLIGHT ACCELERATION IN THE SECTOR'S
RECOVERY WHICH HAD SLOW AND CHOPPY GROWTH EARLIER THIS YEAR FOLLOWING JUMPS
EXCEEDING 10 IN SOME MONTHS LAST YEAR HOUSING STARTS HAVE RISEN FROM
YEAREARLIER LEVELS SINCE MID1992 AFTER FALLING FOR 19 CONSECUTIVE MONTHS
EXCEPT IN APRIL 1992

MEANWHILE THE LABOR MINISTRY ADDED NINE INDUSTRIES INCLUDING
TELEVISIONCOMMERCIAL PRODUCTION TO THE ELIGIBILITY LIST FOR GOVERNMENT
SUBSIDIES FOR JOB RELOCATIONS OR LAYOFFS RESULTING FROM THE ECONOMIC
SLOWDOWN NOW 168 INDUSTRIES MOSTLY MANUFACTURERS MAY GET THE SUBSIDIES

SEPARATELY JAPAN'S POSTAL AGENCY WHICH HAS RUN IN THE RED FOR TWO YEARS IN
A ROW MAY RAISE POSTAGE RATES IN JANUARY THE LETTER RATE COULD SOAR 45 TO
90 YEN 85 US CENTS FROM 62 YEN

CROATIA WILL REPLACE THE DINAR WITH A NEW CURRENCY THE KUNA A MEDIEVAL
NAME ALSO LINKED TO THE REPUBLIC'S HISTORY AS A NAZI PUPPET STATE A DATE
FOR THE SWITCH AND A NEW EXCHANGE RATE WEREN'T SPECIFIED THE DINAR
INTRODUCED IN JANUARY 1991 TO REPLACE YUGOSLAV BANKNOTES TRADES AT 3900 TO
THE DOLLAR ONE KUNA WILL CONSIST OF 100 LIPAS CROATIAN FOR LIME TREE
SKINS OF KUNA OR MARTEN A SMALL ANIMAL VALUED FOR ITS FUR WERE USED IN
THE 10THCENTURY BARTER ECONOMY KUNA BECAME MEDIEVAL CROATIA'S MONETARY
UNIT AND WAS REINTRODUCED IN THE WORLD WAR II FASCIST STATE

A CHINESE COURT CONFIRMED THAT TWO CHINESE HAD BEEN SENTENCED TO JAIL FOR
GIVING STATE SECRETS TO A WASHINGTON POST REPORTER RENEWING APPREHENSIONS
ABOUT WHETHER CHINA CAN DEVELOP A POLITICALLY OPEN SOCIETY BAI WEIJI WAS
SENTENCED TO 10 YEARS HIS WIFE ZHAO LEI WAS GIVEN A SIXYEAR TERM BOTH
ARE FRIENDS OF THE POST'S BEIJING CORRESPONDENT LENA SUN MS SUN HAS
MAINTAINED THAT THE DOCUMENTS SHE RECEIVED WERE INNOCUOUS MANY WIDELY
CIRCULATED PUBLICATIONS IN CHINA ARE CONSIDERED INTERNAL DOCUMENTS FOR
CHINESE ONLY BUT ARE READILY AVAILABLE EVEN BY SUBSCRIPTION TO FOREIGNERS
MR BAI HAD PARTICIPATED IN THE 1989 DEMOCRACY MOVEMENT

BRITAIN PROPOSED OUTLAWING INTRUSIONS INTO INDIVIDUALS' FAMILY AND PERSONAL
CIRCUMSTANCES HEALTH AND LOVE LIFE BUT TABLOID NEWSPAPERS SAID PRIVACY
LEGISLATION WOULD MUZZLE THE MEDIA AND THREATEN DEMOCRACY AND INFRINGEMENT
CASES IN COURT WOULD BENEFIT ONLY THE RICH AND LAWYERS THE PROPOSAL WAS A
RESPONSE TO ALLEGED EXCESSES BY BRITISH MEDIA IN EXPOSING INDISCRETIONS AND
OFFENSES BY ROYALS OFFICIALS CELEBRITIES AND COMMONERS ALIKE BUT EVEN
CONSERVATIVE NEWSPAPERS WERE SKEPTICAL FAVORING INSTEAD TIGHTER LAWS ON
TRESPASS AND PHONE TAPS

RUSSIA EXPORTED 182 BILLION OF GOODS IN THE FIRST HALF A RISE OF JUST 3
FROM A SLOW YEAREARLIER PERIOD IMPORTS SLUMPED 49 TO 88 BILLION IN ALL
OF 1992 EXPORTS SANK 51 TO 45 BILLION REFLECTING A SHARP DROP IN OUTPUT
OF RAW MATERIALS SUCH AS OIL AND A DEPRESSED ECONOMY THAT RUSSIA PARTLY
BLAMES ON WESTERN TRADE RESTRICTIONS FROM THE SOVIET ERA MEANWHILE THOUGH
RUSSIA PREDICTED A BUMPER GRAIN CROP OF AT LEAST 1254 MILLION TONS THIS
YEAR OR 6 MILLION TONS MORE THAN PREDICTED THE COUNTRY CONSUMES 143
MILLION TONS ANNUALLY AND THUS WILL HAVE TO IMPORT GRAIN IT IMPORTED 272
MILLION TONS OF GRAIN LAST YEAR AND 86 MILLION TONS SO FAR THIS YEAR

CREDIT BANK OF GREECE IS SETTING UP WHAT IT SAID IS THE FIRST ROMANIAN BANK
FUNDED ENTIRELY WITH FOREIGN CAPITAL THE NEW BANK OF BUCHAREST WILL BE
OWNED 60 BY THE GREEK BANK AND 15 BY ONE OF ITS UNITS AND 25 BY THE
EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT A MULTILATERAL LENDER THAT
PROMOTES ECONOMIC DEVELOPMENT IN THE FORMER EAST BLOC

WORRIED THAT TOO MANY TOP CIVIL SERVANTS ARE BEING POACHED BY THE PRIVATE
SECTOR SINGAPORE'S GOVERNMENT PLANS TO RAISE THEIR PAY THE CIVIL SERVICE
ONCE THE PREFERRED EMPLOYER NOW HAS TO COMPETE WITH THE PRIVATE SECTOR FOR
TALENT PRIME MINISTER GOH CHOK TONG SAID IN A SPEECH

HIGHLEVEL OFFICIALS IN THE SINGAPORE GOVERNMENT ARE HARDLY STARVING
ACCORDING TO THE LATEST BUDGET THE HIGHESTRANKING BUREAUCRATS CURRENTLY
RECEIVE A BASIC ANNUAL SALARY EQUIVALENT TO 240000 PLUS A VARIABLE ANNUAL
BONUS AND OTHER PAYMENTS THAT'S MORE THAN A CABINET MINISTER'S BASE PAY

BUT MR GOH SAID THAT COMPARED WITH THE PRIVATE SECTOR CIVILSERVICE
SALARIES HAVE FALLEN BEHIND PARTICULARLY AT THE SENIOR LEVELS OF THE
ADMINISTRATIVE SERVICE THE ELITE BRANCH MR GOH SAID HE HAS ASKED
GOVERNMENT OFFICIALS TO REVIEW THE PAY SCALES WITH A VIEW TO ADJUSTING THEM
LATER THIS YEAR THE LAST MAJOR REVISION OF CIVILSERVICE PAY SCALES WAS IN
1989

A JAPANESE GOVERNMENT SURVEY FOUND THAT A RECORD 80 OF COMPANIES HAVE
POLICIES SETTING RETIREMENT AT AGE 60 OR OLDER UP FROM 766 IN LAST YEAR'S
POLL  FRANCE'S UNEMPLOYMENT RATE IN JUNE GREW TO 116 A POSTWORLD
WAR II HIGH FROM 115 IN MAY  THE WORLD BANK APPROVED LENDING POLAND
146 MILLION TOWARD ITS 3354 MILLION PROJECT TO DEVELOP THE NATIONAL PARKS
SYSTEM SEE RELATED LETTER LETTERS TO THE EDITOR FASCIST LABEL UNFAIR 
 WSJ SEPT 1 1993 9308020024 YY93 MM09 9309010162 930812 SCIENCE
BESIEGED STUDYING THE BIOLOGY OF SEXUAL ORIENTATION HAS POLITICAL
FALLOUT  RESEARCHERS FIND THEIR LABS TURN INTO BATTLEGROUNDS FOR
OPPOSING VIEWPOINTS  THIS COULD END YOUR CAREER'  BY DAVID
J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL

LOS ANGELES NEUROBIOLOGIST SIMON LEVAY DIDN'T ANTICIPATE POLITICAL
FALLOUT WHEN HE PUBLISHED HIS 1991 STUDY INDICATING THAT A TINY SEGMENT OF
THE HYPOTHALAMUS BELIEVED TO REGULATE SEXUAL ACTIVITY IS SMALLER IN
HOMOSEXUAL MEN THAN IN HETEROSEXUALS

THEN THE SALK INSTITUTE RESEARCHER BEGAN FIELDING QUESTIONS FROM REPORTERS
ASKING WHAT IMPACT HIS WORK WOULD HAVE ON GAY RIGHTS

I HADN'T REALLY THOUGHT ABOUT HOW IT WOULD BE INTERPRETED OR THE SOCIAL
CONSEQUENCES IT WOULD HAVE SAYS DR LEVAY WHO HAS SINCE LEFT THE
INSTITUTE IN LA JOLLA CALIF TO ACTIVELY ESPOUSE GAY RIGHTS HE FORMED A
GAYSTUDIES SCHOOL IN WEST HOLLYWOOD WORKS THE LECTURE CIRCUIT AND RIDES IN
GAYPRIDE PARADES

SCIENCE DOESN'T OPERATE IN A VACUUM PARTICULARLY WHEN IT COMES TO
EXPLAINING HOMOSEXUALITY FAR FROM RESCUING HOMOSEXUALITY FROM THE CLAWS OF
A RELIGIOUS OR POLITICAL ENVIRONMENT TO A MEDICALLYSAFE ENVIRONMENT AS
NEUROBIOLOGIST HEINO MEYERBAHLBURG SUGGESTED AT A RECENT SEMINAR ON THE
SUBJECT THE SEARCH FOR A CAUSE OF HOMOSEXUALITY HAS SIMPLY SHIFTED AN
INCREASINGLY NASTY DEBATE TO THE NATION'S RESEARCH LABORATORIES

THOUGH THEY ARE FAR FROM CONCLUSIVE RECENT BIOLOGICAL STUDIES HAVE BECOME
CRUCIAL POLITICAL FODDER FOR BOTH GAYRIGHTS ACTIVISTS AND THEIR OPPONENTS
FOR EXAMPLE LAST MONTH'S ANNOUNCEMENT OF A NATIONAL CANCER INSTITUTE STUDY
SHOWING THAT SOME MEN MAY HAVE INHERITED ONE OR MORE GENES THAT PREDISPOSE
THEM TO HOMOSEXUALITY HAS INTERPRETATIONS FOR BOTH SIDES SOME PEOPLE MAY
SAY TO ME YOUR RESEARCH IS REALLY PROGAY' SAYS DEAN HAMER A MOLECULAR
BIOLOGIST WHO LED THE GENETICS STUDY BUT OTHERS MAY SAY THAT IT PROVES
HOMOSEXUALITY IS A GENETIC DISEASE LIKE ALCOHOLISM

IT IS HARDLY THE FIRST TIME SCIENCE HAS HAD TO DEAL WITH POLITICAL AND
SOCIAL RAMIFICATIONS FROM THE FURY OVER CREATIONISM VS EVOLUTION IN THE
SCOPES MONKEY TRIAL OF 1925 TO THE BITTER DEBATE OVER THE FRENCH
MORNINGAFTER ABORTION PILL RU486

BUT MOST SCIENTISTS STUDYING SEXUAL ORIENTATION SAY THEY ARE UNEASY WITH
THIS COMMINGLING OF POLITICS AND RESEARCH I'VE COME TO THE REALIZATION
THAT IT'S VERY DIFFICULT TO PREDICT WHAT WILL BE THE POLITICAL IMPACT OF
ANYTHING THAT HAPPENS IN THE WORLD MUCH LESS ANY PARTICULAR SCIENTIFIC
FINDING SAYS DR HAMER

THE POLITICS CAN GET OVERWHELMING AT TIMES THREATENING TO IMPINGE ON THE
SCIENTIFIC PROCESS SCIENTISTS WHO POUR COLD WATER ON THE BIOLOGICALCAUSE
THEORIES HAVE FOUND THEMSELVES SCOLDED BY GAYRIGHTS ACTIVISTS I'M TOLD MY
CRITICISM IS NOT POLITICALLY CORRECT SAYS WILLIAM BYNE A NEW YORK
PSYCHIATRIST AND FORMER NEUROBIOLOGIST WHO QUESTIONS THE LATEST SCIENTIFIC
FINDINGS PRIMARILY BECAUSE THEY HAVEN'T BEEN REPLICATED WHAT THEY'RE
SAYING THEREFORE IS THAT I SHOULD SUBJUGATE SCIENTIFIC RIGOR TO POLITICAL
EXPEDIENCY

THE DISCOVERY OF A DEFINITIVE BIOLOGICAL CAUSE OF HOMOSEXUALITY COULD GO A
LONG WAY TOWARD ADVANCING THE GAYRIGHTS CAUSE IF HOMOSEXUALITY WERE FOUND
TO BE AN IMMUTABLE TRAIT LIKE SKIN COLOR THEN LAWS CRIMINALIZING
HOMOSEXUAL SEX MIGHT BE OVERTURNED A HAWAII SUPREMECOURT JUDGE RECENTLY
NOTED THAT A BIOLOGICAL BASIS FOR HOMOSEXUALITY COULD TIP THE SCALES TOWARD
LEGALIZATION OF SAMESEX MARRIAGES JOB PROTECTION FOR HOMOSEXUALS THE
LAW IN EIGHT STATES MIGHT BE EXTENDED THROUGHOUT THE COUNTRY

MOREOVER A BIOLOGICAL LINK COULD DO MUCH TO DISPEL THE BELIEF THAT PEOPLE
CHOOSE TO BE HOMOSEXUAL RECENT POLLS INDICATE AMERICANS WHO THINK
HOMOSEXUALITY ISN'T CHOSEN ARE FAR MORE LIKELY TO FAVOR GAY RIGHTS THAN
THOSE WHO BELIEVE OTHERWISE

IT IS SUCH SHIFTS IN PUBLIC OPINION THAT ANTIHOMOSEXUAL GROUPS FEAR MOST
IF I WERE A GAYRIGHTS MANAGER I'D SAY GUYS WHATEVER WE DO WE HAVE TO
MAKE THEM BELIEVE WE WERE BORN THAT WAY' SAYS PAUL CAMERON CHAIRMAN OF
FAMILY RESEARCH INSTITUTE INC A LOBBYING GROUP WHOSE SLOGAN IS SCIENTISTS
DEFENDING TRADITIONAL FAMILY VALUES IF THEY CAN GET A MAJORITY OF
AMERICANS BELIEVING IT THEY'RE HOME FREE

UNTIL RECENTLY FEAR OF GETTING EMBROILED IN THE POLITICAL BATTLE PUT A LID
ON RESEARCH IN 1982 LAURA ALLEN WAS STUDYING SEXLINKED BRAIN DIFFERENCES
IN RATS AS A GRADUATE STUDENT AT UCLA AND SHE WANTED TO SEE IF SIMILAR
DIFFERENCES COULD BE FOUND IN THE BRAINS OF GAY MEN HER SUPERIOR DR ROGER
GORSKI TOLD HER TO STICK WITH RATS I WAS NOT ALLOWED TO DO THAT STUDY
BECAUSE OF THE FEAR OF CONTROVERSY IT WOULD CAUSE DR GORSKI TOLD ME THIS
COULD END YOUR CAREER' SHE SAYS

DESPITE THE INITIAL TREPIDATION DR ALLEN PERSISTED LAST YEAR SHE AND DR
GORSKI PUBLISHED A STUDY SHOWING THAT A STRUCTURE CONNECTING THE LEFT AND
RIGHT SIDES OF THE BRAIN CALLED THE ANTERIOR COMMISSURE WAS 34 LARGER IN
THE 30 GAY MEN STUDIED THAN IN 30 HETEROSEXUAL MEN IRONICALLY WHAT HURT
MY CAREER WAS NOT PUBLISHING MY RESULTS RIGHT AWAY DR ALLEN SAYS

SEXUALORIENTATION RESEARCH ALONG WITH SEX RESEARCH IN GENERAL ALSO HAS
SUFFERED FROM LACK OF FUNDING MOST OF WHAT'S BEING DONE IS BY PEOPLE PAID
TO DO OTHER THINGS ON SMUGGLED TIME SAYS RICHARD PILLARD A PROFESSOR OF
PSYCHIATRY AT BOSTON UNIVERSITY HIS STUDIES ON GAY TWINS WITH RESEARCH
PARTNER J MICHAEL BAILEY OF NORTHWESTERN UNIVERSITY'S DEPARTMENT OF
PSYCHOLOGY WERE LARGELY FUNDED ON A SHOESTRING BY A COMBINATION OF MONEY
FROM NORTHWESTERN AND AN 8000 LOAN

IT'S CLEAR THAT SEX RESEARCH IS REGARDED WITH GREAT SUSPICION BY AT LEAST
SOME BRANCHES OF THE GOVERNMENT DR PILLARD SAYS

DR HAMER'S WORK IS THE FIRST OF THE RECENT SEXUALORIENTATION STUDIES TO
RECEIVE FEDERAL FUNDING BUT THAT IS MAINLY BECAUSE IT IS PART OF A LARGER
STUDY OF CERTAIN TYPES OF CANCER IN GAY MEN WHO TEST POSITIVE FOR HIV THE
VIRUS THAT CAUSES ACQUIRED IMMUNE DEFICIENCY SYNDROME AND THE GOAHEAD FOR
THE STUDY WENT ALL THE WAY TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
BECAUSE OFFICIALS AT THE NATIONAL INSTITUTES OF HEALTH WERE CONCERNED IT
WOULD BE POTENTIALLY CONTROVERSIAL DR HAMER SAYS

IT'S COMMON FOR ONE OF THE INSTITUTES OF THE NIH IF THEY HAVE SOMETHING
UNUSUAL OR CONTROVERSIAL TO PASS THAT INFORMATION UP THE LINE
ACKNOWLEDGES BILL GRIGG SPOKESMAN FOR HHS'S US PUBLIC HEALTH SERVICE ARM
AND IF A BIG STORY MAY COME UP OUT OF IT IT MIGHT EVEN BE MENTIONED TO THE
WHITE HOUSE

SUCH SKITTISHNESS IS UNDERSTANDABLE GIVEN THE CONTROVERSY THAT ERUPTED WHEN
DR LEVAY PUBLISHED HIS RESEARCH ABOUT THE HYPOTHALAMUS TWO YEARS AGO
GAYRIGHTS LEADERS WERE QUICK TO TOUT THE STUDY AS PROOF THAT HOMOSEXUALITY
ISN'T A CHOICE WHILE CAUTIONING AGAINST THE POSSIBLE USE OF THE FINDINGS TO
SOMEHOW CURE HOMOSEXUALS

CRITICS ZEROED IN ON THE FACT THAT DR LEVAY IS HOMOSEXUAL SUGGESTING THAT
HE MAY HAVE BEEN BIASED QUESTIONS ALSO WERE RAISED WHETHER THE DIFFERENCES
IN BRAIN STRUCTURE MIGHT HAVE BEEN DUE TO THE RAVAGES OF AIDS SINCE THE 19
GAY MEN WHOSE BRAINS WERE STUDIED ALL HAD DIED FROM THE DISEASE DR LEVAY
SAYS THAT IS UNLIKELY SOME RELIGIOUS FUNDAMENTALISTS EVEN SUGGESTED THAT
HOMOSEXUAL ACTIVITY SOMEHOW COULD HAVE CAUSED THE STRUCTURAL DIFFERENCES

TO MITIGATE A SIMILAR FRENZY OVER HIS GENETIC STUDY DR HAMER SAYS HE
SOUGHT THE ADVICE OF AN ADVISORY COMMITTEE OF TWO BIOETHICISTS A
PRESBYTERIAN MINISTER A LAWYER A MEMBER OF THE FEDERATION OF PARENTS AND
FRIENDS OF LESBIANS AND GAYS AND A REPRESENTATIVE OF THE NIH DIRECTOR'S
OFFICE HE ASKED THEM HOW TO PRESENT THE RESULTS TO THE GENERAL PRESS IN A
WAY THAT WOULDN'T BE SENSATIONALIST OR MISLEADING OR CAUSE PEOPLE UNDUE
FEARS

WHEN YOU'RE DEALING WITH SOMETHING AS SOCIALLY SIGNIFICANT AS
HOMOSEXUALITY YOU HAVE THE INCREASED RESPONSIBILITY TO CONSIDER THE PUBLIC
REACTION TO WHAT YOU'RE ANNOUNCING SAYS THOMAS MURRAY DIRECTOR OF THE
CENTER FOR BIOMEDICAL ETHICS AT CASE WESTERN RESERVE UNIVERSITY IN
CLEVELAND AND AN ETHICS ADVISER ON THE HUMAN GENOME PROJECT

DESPITE DR HAMER'S EFFORTS THOUGH CONSERVATIVE GROUPS OPPOSED TO
HOMOSEXUALITY HAVE BLASTED HIM THEY POINT TO POSSIBLE HOLES IN THE STUDY
AND ACCUSE THE RESEARCHERS OF BIAS IN THEIR STATEMENTS THAT MALE
HOMOSEXUALITY IS A NORMAL VARIATION IN HUMAN BEHAVIOR

THEIR LITERATURE REVIEW IS ENTIRELY PROHOMOSEXUAL SAYS THE FAMILY
RESEARCH INSTITUTE'S DR CAMERON WHO FAULTS THE RESEARCHERS FOR NOT
INCLUDING ANY MAJOR DISCUSSION OF THE HYPOTHESIS OF RECRUITMENT THE
BELIEF THAT GAYS AND LESBIANS RECRUIT HETEROSEXUALS INTO A LIFE OF
HOMOSEXUALITY HE ALSO COMPLAINS THAT THE RESEARCHERS IGNORED THE
TRADITIONAL PSYCHOLOGICAL MODEL OF DISTURBED FAMILIES PRODUCING MORE
HOMOSEXUALS THE AMERICAN PSYCHIATRIC ASSOCIATION REMOVED HOMOSEXUALITY
FROM ITS LIST OF DISORDERS IN 1973

DR LEVAY READILY ACKNOWLEDGES THAT AS A GAY MAN I WAS VERY INTERESTED IN
THE QUESTION OF WHAT MAKES PEOPLE GAY ALTHOUGH HE SAYS HIS STUDY WASN'T
DONE TO ADVANCE GAY RIGHTS

BOSTON UNIVERSITY'S DR PILLARD WHO ALSO IS HOMOSEXUAL THINKS THE
CRITICISM ABOUT BIASES IS BUNK WHAT DOES A BIAS MEAN DO THEY THINK WE'RE
ALTERING THE DATA HE ASKS REGARDING HIS STUDIES THAT FOUND A 52
CORRELATION FOR HOMOSEXUALITY BETWEEN SETS OF IDENTICAL MALE TWINS AND A 48
CORRELATION BETWEEN FEMALE IDENTICAL TWINS

EVEN THE VERY WORDS USED IN SCIENTIFIC LANGUAGE COME UP FOR POLITICAL
INTERPRETATION THESE DAYS WHEN DISCUSSING HOMOSEXUALITY TAKE FOR EXAMPLE
THE FLAREUP AT THE AMERICAN PSYCHIATRIC ASSOCIATION'S ANNUAL CONVENTION IN
MAY WHERE BIOLOGISTS IN ONE PANEL DISCUSSION WERE EXPLAINING HOW CERTAIN
HORMONAL DEFICIENCIES AND PRENATAL STRESSES COULD BE LINKED TO
HOMOSEXUALITY

I'D LIKE NOT TO HEAR THE WORDS DEFICIENCY' OR DISTRESS' USED IN
DISCUSSING HORMONES COMPLAINED AUDIENCE MEMBER JAMES KRAJESKI A SAN
FRANCISCO PSYCHIATRIST WE NEED TO MOVE AWAY FROM PATHOLOGICAL MODELS WHERE
THE ASSUMPTION IS THAT HOMOSEXUALITY IS A NEGATIVE OUTCOME

THE BIOLOGISTS INSISTED THAT THE TERMS ARE STRICTLY SCIENTIFIC I SEE
NOTHING PEJORATIVE SAID WALTER MILLER A PEDIATRICIAN LECTURING ABOUT
CONGENITAL ADRENAL HYPERPLASIA A DISORDER WHERE GENETIC FEMALES DEVELOP
MALE GENITALS AND WHICH MAY PROVIDE SOME HINTS ABOUT HORMONES AND
HOMOSEXUALITY THIS IS SCIENCE THE INTERPRETATION AND ASSIGNMENT OF VALUE
JUDGMENTS IS SOMETHING SOCIETY CAN DO

OPPONENTS OF HOMOSEXUALITY THEREFORE HAVE BEEN QUICK TO CITE SUCH WRITINGS
AS THOSE BY DR BYNE THE NEW YORK PSYCHIATRIST TO BOLSTER THEIR CLAIMS
THAT HOMOSEXUALITY IS A SINFUL CHOSEN BEHAVIOR DR BYNE CONTENDS THAT
WHILE STUDIES SHOWING A BIOLOGICAL LINK TO HOMOSEXUALITY HAVE GOTTEN LOTS OF
ATTENTION THOSE THAT SHOW NO LINK GET BURIED ON THE BACK PAGES IF THEY ARE
REPORTED AT ALL THE PROBLEM IS THAT NEGATIVE REPLICATION STUDIES TEND TO
GO UNHEEDED HE SAYS FOR EXAMPLE THERE ARE 25 STUDIES LOOKING AT
TESTOSTERONE LEVELS IN GAY MEN THREE FOUND LOWER LEVELS TWO FOUND HIGHER
LEVELS 20 FOUND NO DIFFERENCE BUT FOR DECADES THE PREDOMINANT BELIEF WAS
THAT HOMOSEXUALITY WAS CAUSED BY LOW TESTOSTERONE LEVELS

DR CAMERON OF THE FAMILY RESEARCH INSTITUTE IS ONE WHO MAKES EXTENSIVE USE
OF DR BYNE'S WORK TO SUPPORT HIS OWN VIEWS OF HOMOSEXUALITY DR CAMERON IS
THE AUTHOR OF SUCH WRITINGS AS A PAMPHLET CALLED MEDICAL CONSEQUENCES OF
WHAT HOMOSEXUALS DO WHICH PURPORTS TO GIVE INFORMATION ABOUT GAY MEN'S
SEXUAL PRACTICES CALLING THEM A MEDICAL HORROR STORY

DR CAMERON WAS DROPPED FROM THE AMERICAN PSYCHOLOGICAL ASSOCIATION IN 1983
FOR ALLEGEDLY VIOLATING THE PREAMBLE OF THE APA'S CODE OF ETHICS WITH HIS
ANTIHOMOSEXUAL VIEWS HE SAYS HE RESIGNED BUT AGREES THAT THE SPLIT WAS
RELATED TO HIS VIEWS ON HOMOSEXUALITY

AS THE MAN IN THE MIDDLE DR BYNE SAYS BEING QUOTED BY ANTIHOMOSEXUAL
GROUPS IRKS HIM AS MUCH AS THE CRITICISM HE GETS FROM GAYRIGHTS GROUPS
THEY HAVE PICKED UP ON MY WORK ARGUING AGAINST BIOLOGICAL CAUSATION AND
THEY HAVE INTERPRETED IT AS ARGUING FOR CHOICE HE SAYS REJECTING THE
IDEA THAT THERE'S A SIMPLE BIOLOGICAL CAUSE IS NOT ARGUING FOR CHOICE HE
SAYS HE ALSO HAS TAKEN A LOT OF HEAT FROM GAY SCIENTISTS DOING BIOLOGICAL
RESEARCH IN THIS AREA THEY SAY I HAVE TO TAKE RESPONSIBILITY FOR THE MISUSE
OF MY WORK

THEIR OPPONENTS' INTEREST IN SCIENCE HAS GAYRIGHTS ACTIVISTS NERVOUS THAT
ANY NEW BIOLOGICAL DATA WILL BE TURNED AGAINST THEM THEY ASK COULDN'T A
PRENATAL TEST BE DEVELOPED TO DETERMINE A CHILD'S PREDISPOSITION TO
HOMOSEXUALITY

THAT CERTAINLY IS A POSSIBILITY SAYS UCLA'S DR ALLEN IF A GAY GENE IS
ISOLATED THEN MAYBE AMNIOCENTESIS COULD BE USED TO IDENTIFY THE GENETIC
COMPOSITION OF THE UNBORN BABY

THAT AND THE IMPLICATION THAT A PREGNANCY COULD BE TERMINATED BASED ON SUCH
INFORMATION IS SOMETHING THAT WEIGHS HEAVILY ON THE MINDS OF SCIENTISTS IN
THE FIELD WE HAVE AN OBLIGATION TO MAKE SURE WE DON'T DO THINGS THAT COULD
BE USED TO HARM PEOPLE DR HAMER SAYS

BUT HE AND OTHERS SAY THEY ARE HOPEFUL THAT THEIR RESEARCH WILL ONE DAY LEAD
TO A MORE LEVELHEADED DEBATE OVER SEXUAL ORIENTATION I'M PERFECTLY AWARE
THERE ARE MANY PEOPLE WHO ARE NOT INTERESTED IN THE FACTS WHO HAVE THEIR
OWN DEEPLYHELD BELIEFS WHICH I RESPECT THAT WILL NOT BE SWAYED BY
SCIENCE DR HAMER SAYS BUT I'M OPTIMISTIC THAT THE MAJORITY OF AMERICANS
ARE WILLING TO LISTEN TO THE FACTS SEE RELATED LETTER LETTERS TO THE
EDITOR PHILOSOPHICAL DANGERS OF GENETICS RESEARCH WSJ SEPT 1 1993
9308120066 YY93 MM09 9309010146 930804 MARKETING LOWALCOHOL BRIGHTLY
LABELED COCKTAILS STIR FEARS THEY WILL TEMPT TEENAGERS  BY EBEN
SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE LIQUOR INDUSTRY IS LAUNCHING A FRESH WAVE OF LOWALCOHOL
COCKTAILS THAT CRITICS SAY WILL BE TEMPTING FOR TEENAGERS

LOWALCOHOL COCKTAILS BEARING SUCH FAMILIAR BRAND NAMES AS JACK DANIEL'S
AND MIXED WITH FRUIT JUICE OR SODA ARE ONE OF THE FEW HOT SEGMENTS IN THE
STAGNANT SPIRITS INDUSTRY NEW DRINKS WITH SYRUPYSWEET TASTE BRIGHTLY
COLORED LABELS AND SUCH CUTESY NAMES AS TAHITIAN TANGERINE AND DIXIE
JAZZBERRY ARE FLOODING INTO GROCERY STORES AND LIQUOR OUTLETS

BROWNFORMAN CORP FLUSH WITH THE SUCCESS OF ITS JACK DANIEL'S COUNTRY
COCKTAILS RECENTLY INTRODUCED A LINE OF SOUTHERN COMFORT COCKTAILS GRAND
METROPOLITAN PLC'S HEUBLEIN INC IS ADDING TO ITS 12PROOF JOSE CUERVO
MARGARITAS WITH A TEST OF SMIRNOFF QUENCHERS A LOWERPOWER LINE OF FRUITY
VODKALACED DRINKS

THE NEW CONCOCTIONS AMOUNT TO A KIND OF KIDDIE COCKTAIL CRITICS OF THE
SPIRITS INDUSTRY CONTEND SOME ARE EVEN SOLD IN FAMILIAR 12OUNCE ALUMINUM
CANS COMPLETE WITH POPTOPS JUST LIKE COKE'S AND PEPSI'S

ALL LIQUOR MARKETERS DENY THEY ARE TARGETING UNDERAGE DRINKERS BUT CRITICS
MAINTAIN THAT THE NEW MIXED DRINKS WILL BECOME MORE ACCESSIBLE FOR
TEENAGERS PRESSED BY THE DELUGE OF NEW COMPETITION IN THE CATEGORY SOME
SPIRITS MAKERS ARE TAMPERING WITH THEIR FORMULAS TO MOVE BEYOND THE
RESTRICTIONS OF LIQUOR STORES AND GET GREATER ACCESS TO THOUSANDS OF
SUPERMARKETS AND CONVENIENCE STORES IT'S AN EASY LEAP FROM COCACOLA TO
JIM BEAM AND COLA THESE ARE TRANSITIONAL PRODUCTS DELIBERATELY INTENDED TO
BLUR THE LINE BETWEEN SOFT DRINKS AND ALCOHOLIC DRINKS SAYS JEAN
KILBOURNE A FREQUENT CRITIC OF THE SPIRITS INDUSTRY WHO ADVISES FEDERAL
OFFICIALS ON ALCOHOL ABUSE

THE LOWALCOHOL CATEGORY HAD SALES OF ALMOST 39 MILLION CASES AND 1 BILLION
AT RETAIL LAST YEAR WINE COOLERS ON THE MARKET SINCE THE MID1980S
ACCOUNTED FOR ALMOST THREEQUARTERS OF THAT BUT THE MORE RECENT
SPIRITSBASED DRINKS SUCH AS JACK DANIEL'S COCKTAILS AND CUERVO MARGARITAS
PROVIDED MOST OF THE GROWTH

THAT BUSINESS WILL BOOM IF SPIRITS MAKERS HAVE THEIR WAY BACARDI IMPORTS
INC BESIEGED BY LATECOMING RIVALS IS LEADING THE MOVE BEYOND THE CORNER
LIQUOR STORE IN 1990 ITS BACARDI BREEZERS REVITALIZED THE LOWALCOHOL
MARKET AND SOLD FOUR MILLION CASES THE THIRDBESTSELLING PRODUCT IN THE
INDUSTRY ACCORDING TO JOBSON'S PUBLISHING CO BUT BREEZERS DECLINED 12 IN
SHIPMENTS TO 35 MILLION CASES LAST YEAR LOSING GROUND TO JACK DANIEL'S
COCKTAILS TWO MILLION CASES AND HEUBLEIN'S MARGARITAS ONE MILLION
ACCORDING TO M SHANKEN COMMUNICATIONS

TO TRY TO REVIVE SALES BACARDI RECENTLY BEGAN SHIPPING A NEW SERIES OF
STYLISH CANS ADORNED WITH INVITING ILLUSTRATIONS OF SLICED FRUIT IT HAS
ALSO QUIETLY REMIXED ITS RECIPE SO THE LOWALCOHOL COCKTAIL GETS ITS KICK
FROM WINE RATHER THAN RUM LETTING BACARDI GET INTO THOUSANDS OF STORES THAT
ARE BARRED FROM SELLING HARD LIQUOR

BACARDI ESTIMATES IT WILL GAIN SUPERMARKET DISTRIBUTION IN 20 NEW STATES
BECAUSE OF THE CHANGE IN NEW YORK STATE ALONE BREEZERS CAN NOW BE SOLD IN
20000 BODEGAS GROCERY STORES AND CONVENIENCE STORES COMPARED WITH JUST
2900 LIQUOR STORES WHEN THE PRODUCT WAS RUMBASED IN TEXAS THE BREEZER
LINE'S POTENTIAL DISTRIBUTION INCREASED FIVEFOLD TO 10000 STORES LIKEWISE
SEAGRAM CO HAS CHANGED SOME OF ITS COOLERS FROM WINE TO A MALT BASE THE
LEAST RESTRICTED OF ALL ALCOHOL PRODUCTS TO GET INTO GROCERY STORES IN 18
ADDITIONAL STATES

CRITICS SAY THE ULTIMATE RESULT OF THE VARIOUS MARKETING MOVES WILL BE MORE
PROBLEM DRINKING AMONG TEENAGERS AND AMONG TWO GROWING MARKETS FOR THE
LIQUOR INDUSTRYYOUNG WOMEN AND HISPANICS

IN NEW YORK STATE OFFICIALS SAY THE BROADER DISTRIBUTION OF BACARDI
BREEZERS WILL LEAD TO INCREASED CONSUMPTION BY MINORS MOMANDPOP OUTLETS
FOR INSTANCE ARE MORE LENIENT THAN LIQUOR STORES IN POLICING SALES TO
UNDERAGE PATRONS

THE BROADER DISTRIBUTION WILL APPEAL TO YOUNG WOMEN AS WELL INDUSTRY
RESEARCH SHOWS THEY ARE MORE LIKELY TO BUY THE SWEET WEAK COCKTAILS BUT
HAVE AN AVERSION TO SHOPPING IN LIQUOR STORES MOVING INTO BODEGAS COULD
STIR SALES AMONG HISPANIC WOMEN WHO HAD BEEN LIGHT DRINKERS BUT NOW SHOW A
PATTERN OF INCREASED ALCOHOL CONSUMPTION

ELVA YANEZ COCHAIRWOMAN OF A CALIFORNIA COALITION ON HISPANIC ALCOHOL AND
DRUG ABUSE CALLS BACARDI'S MOVE ANOTHER SLIMY MARKETING PRACTICE FOR
ADAPTING THE PRODUCT TO THE SHOPPING PRACTICES OF YOUNG WOMEN HISPANIC
WOMEN IN PARTICULAR POSE AN UNEXPLOITED MARKET SAYS MARILYN
AGUIRREMOLINA PRESIDENT OF THE LATINO COUNCIL ON ALCOHOL AND TOBACCO IN
CHANGING THEIR PRODUCT THEY ARE REALLY GOING AFTER THE LATINO COMMUNITY
IT'S ONE MORE ASSAULT ON THE HEALTH AND WELLBEING OF THE LATINO COMMUNITY
IN THE INTEREST OF PROFITS ENOUGH IS ENOUGH

BACARDI OFFICIALS SAY THEY ARE BEING SINGLED OUT UNFAIRLY GIVEN THAT BEER
AND WINE COOLERS WITH THE SAME ALCOHOL CONTENT ARE ALREADY WIDELY AVAILABLE
IN GROCERY STORES EVERYBODY IS THERE ALREADY IT ISN'T JUST US SAYS A
SPOKESMAN FOR MIAMIBASED BACARDI IMPORTS THE US MARKETING ARM OF BACARDI
LTD BERMUDA

DISTILLEDSPIRITS MARKETERS ALSO INSIST UNIVERSALLY THAT THEY DON'T AIM AT
UNDERAGE DRINKERS AND THAT THEY ARE CAREFUL IN THEIR DISTRIBUTION THE
REASON THE NEW COCKTAILS COME IN CANS AMERICAN BRANDS INC'S JIM BEAM
UNIT FOR EXAMPLE IS PUSHING CANS OF COLA SPIKED WITH JIM BEAM BOURBON OR
RONRICO RUM IS SIMPLY THAT LEGAL DRINKERS PREFER IT THAT WAY THE
COMPANIES SAY ABOUT 75 OF ALL BEER IS BOUGHT IN CANS THEY POINT OUT

THE SPIRITS COMPANIES ARE LYING PLAIN AND SIMPLE CHARGES LAURIE DORFMAN
ASSOCIATE DIRECTOR OF THE BERKELEY MEDIA STUDIES GROUP WHICH TRACKS ALCOHOL
MARKETING THEY ARE DEFINITELY MARKETING TO YOUTH THEY HAVE TO FROM A
BUSINESS PERSPECTIVE

TO FURTHER BLUR THE LINE BACARDI EVEN MAKES NONALCOHOLIC VERSIONS OF ITS
BREEZERS TO PASS OUT TO KIDS AT BACARDISPONSORED STREET FAIRS AND CONCERTS
ON A RECENT WEEKEND A CONNECTICUT RADIO STATION USING TWO DISK JOCKEYS
NAMED BEAVIS AND BUTTHEAD AFTER THE DIMBULB TEENAGE CARTOON CHARACTERS
THAT STAR IN MTV'S TOPRATED SHOW WERE DOLING OUT THE NOALCOHOL BREEZERS
AT THE BEACH THE NONALCOHOLIC BREEZERS COME IN THE SAME FLAVORS AND SAME
BOTTLES AS THE ADULT VERSIONS BACARDI DOES NOT SELL THE DRINK IN STORES
USING THEM ONLY AT COMPANYSPONSORED EVENTS THE COMPANY DENIES THAT IT IS
TRYING TO PRIME THE PUMP FOR ITS ADULT COCKTAILS

IN NEW YORK CITY A RECENT SURVEY ON HIGHSCHOOL DRINKING FOUND THAT THE
CANNED COCKTAILS AND SUCH ARE THE DRINK OF CHOICE AMONG GIRLS BOYS PREFER
BEER

JUST NORTH OF THE CITY IN AFFLUENT HARRISON TEENAGE GIRLS OVERWHELMINGLY
PREFER THE LOWALCOHOL COCKTAILS SAYS JULIE LICHTSTEIN A HARRISON HIGH
SCHOOL COUNSELOR THEY GET THEM AT LOCAL DELIS SHE SAYS

STUDENTS IN NEARBY RYE ROUTINELY BUY THE LIQUORBRANDED DRINKS AT
SUPERMARKETS WHERE THEY SELDOM GET CARDED SANDY ACEVEDO A COUNSELOR AT
RYE HIGH SCHOOL SAYS HALF THE TIME THE KIDS BEHIND THE CASH REGISTER ARE
THEIR FRIENDS SEE RELATED LETTERS LETTERS TO THE EDITOR IT'S GOOD
MARKETING NOT A MORAL ISSUE SEPT 1 1993 9308040093 YY93 MM09
9309010145 930803 REGULATORY CHOKEHOLD THE HIGH COST OF EMPLOYEES'
RIGHTS'  BY GARY KLOTZ

AMERICAN EMPLOYMENT LAW CONTINUES TO BOOST THE RIGHTS OF THE EMPLOYEE AT THE
EXPENSE OF THE EMPLOYER NOWHERE IS THAT MORE CLEAR THAN IN THE FAMILY AND
MEDICAL LEAVE ACT WHICH TAKES EFFECT THURSDAY

THE FAMILY LEAVE ACT WHICH APPLIES TO EMPLOYERS WITH 50 OR MORE EMPLOYEES
GRANTS FULLTIME EMPLOYEES THE RIGHT TO TAKE UP TO 12 WEEKS OF UNPAID LEAVE
A YEAR FOR SPECIFIED FAMILY AND MEDICAL REASONS DURING THAT TIME THE
EMPLOYER MUST CONTINUE TO PAY FOR THE EMPLOYEE'S HEALTH DENTAL AND OPTICAL
INSURANCE AND AT THE END OF THE LEAVE THE EMPLOYER MUST REINSTATE THE
EMPLOYEE TO THE SAME JOB OR AN EQUIVALENT ONE TO IMPLEMENT THE EIGHTPAGE
ACT THE LABOR DEPARTMENT HAS ISSUED 55 PAGES OF REGULATIONS AND 40 PAGES OF
COMMENTARY EXPLAINING THEM

THE PRINCIPAL BURDEN FOR EMPLOYERS IS THE COST OF MAINTAINING HEALTH
INSURANCE COVERAGE FOR EMPLOYEES ON LEAVE THE GENERAL ACCOUNTING OFFICE
ESTIMATES THIS COST AT 674 MILLION ANNUALLY THE SMALL BUSINESS
ADMINISTRATION ESTIMATES THAT THE AVERAGE COST PER EMPLOYEE WILL BE 1995

THE REAL COST TO EMPLOYERS IS OF COURSE EVEN HIGHER THE GAO BLITHELY
ASSUMES THAT EMPLOYERS WILL EXPERIENCE NO COSTS BEYOND THAT OF MAINTAINING
HEALTH INSURANCE COVERAGE IN FACT MANY EMPLOYERS WILL HAVE THE COST OF
RECRUITING AND TRAINING REPLACEMENT WORKERS WHOSE PRODUCTIVITY WILL LIKELY
BE LOWER

THEN THERE ARE THE ADMINISTRATIVE BURDENS ONE IS THE LABOR DEPARTMENT'S
OPTIONAL MEDICAL CERTIFICATION FORM UNDER THE ACT EMPLOYERS HAVE THE
RIGHT TO DEMAND MEDICAL CERTIFICATION OF THE SERIOUS HEALTH CONDITIONS
REQUIRING A LEAVE DESIGNATING THE LABOR DEPARTMENT'S MEDICAL CERTIFICATION
FORM AS OPTIONAL IS A BUREAUCRATIC MISNOMER THE REGULATIONS PROHIBIT AN
EMPLOYER FROM REQUIRING ANY INFORMATION BEYOND THE INFORMATION COVERED BY
THIS OPTIONAL FORM

THE MEDICAL CERTIFICATION MUST COME FROM THE EMPLOYEE'S HEALTH CARE
PROVIDER WHO CAN BE A MEDICAL DOCTOR OSTEOPATH PODIATRIST DENTIST
CLINICAL PSYCHOLOGIST OPTOMETRIST CHIROPRACTOR NURSE PRACTITIONER NURSE
MIDWIFE OR EVEN A CHRISTIAN SCIENCE PRACTITIONER THE LABOR DEPARTMENT
OPTED NOT TO EXTEND HEALTH CARE PROVIDER STATUS TO ACUPUNCTURISTS AND
PHYSICIANS' ASSISTANTS WHILE EMPLOYERS MAY REQUIRE A SECOND OPINION THEY
ARE NOT ALLOWED TO OBTAIN IT FROM A HEALTH CARE PROVIDER THEY REGULARLY USE
THAT IS EMPLOYERS ARE NOT PERMITTED TO USE THEIR REGULAR MEDICAL STAFF OR
INDUSTRIAL CLINIC PHYSICIANS PROFESSIONALS WHO ARE MOST LIKELY TO KNOW THE
EMPLOYEE'S JOB DUTIES

ANOTHER ADMINISTRATIVE BURDEN IS THE REQUIRED RECORDKEEPING EVEN THOUGH
THE LABOR DEPARTMENT STATES THAT NO PARTICULAR ORDER OR FORM OF RECORDS IS
OBLIGATORY IT LISTS NUMEROUS ITEMS OF INFORMATION THAT MUST BE KEPT THE
EMPLOYER'S RECORDS FOR EXAMPLE MUST DESIGNATE LEAVE TAKEN UNDER THE ACT AS
FMLA LEAVE THE VARIOUS AND SUNDRY NOTICES GIVEN TO EMPLOYEES ABOUT THE
FAMILY LEAVE ACT MUST BE RETAINED IN EMPLOYEE PERSONNEL FILES MEDICAL
CERTIFICATIONS MUST BE MAINTAINED IN SEPARATE CONFIDENTIAL FILES

PORTIONS OF THE LABOR DEPARTMENT'S REGULATIONS ALSO REFLECT A GRATUITOUS
ANTIEMPLOYER BIAS FOR EXAMPLE REGULATIONS STATE THAT EMPLOYERS ARE
EXPECTED TO RESPONSIVELY ANSWER EMPLOYEE QUESTIONS ABOUT THE ACT THE
LABOR DEPARTMENT APPARENTLY BELIEVES THAT ABSENT THIS REGULATORY
REQUIREMENT EMPLOYERS WOULD STONEWALL OR LIE TO THEIR EMPLOYEES ABOUT THE
ACT

THE REGULATIONS STATE OTHER VERY ODD REQUIREMENTS TO BE ELIGIBLE FOR A
LEAVE FOR EXAMPLE AN EMPLOYEE MUST WORK AT A SITE WHERE THE EMPLOYER
EMPLOYS AT LEAST 50 PEOPLE WITHIN A 75MILE RADIUS SO FAR SO GOOD BUT HOW
THE 75MILE RADIUS WILL BE MEASURED IS THE CATCH

THE LABOR DEPARTMENT REJECTS THE SIMPLE AS THE CROW FLIES METHOD BECAUSE
IN PART OF PURPORTED PRACTICAL DIFFICULTIES INSTEAD THE 75MILE RADIUS
WILL BE MEASURED BY ROAD MILES USING SURFACE TRANSPORTATION OVER PUBLIC
STREETS ROADS HIGHWAYS AND WATERWAYS BY THE SHORTEST ROUTE FROM THE
FACILITY WHERE THE ELIGIBLE EMPLOYEE REQUESTING LEAVE IS EMPLOYED TO
DETERMINE THE 75MILE RADIUS THE EMPLOYER MUST PREPARE THE EQUIVALENT OF A
TRIPTIK BETWEEN THE TWO FACILITIES THE LABOR DEPARTMENT VIEWS THE
TRIPTIK METHOD AS PRESENTING NO PRACTICAL DIFFICULTIES

THE FMLA CLEARLY PROVIDES NO BENEFITS TO EMPLOYERS IN TERMS OF THEIR
EXPOSURE TO LITIGATION THE FMLA IS LIKELY TO GENERATE NUMEROUS LAWSUITS
WHICH WILL BE EXPENSIVE TO DEFEND EMPLOYEES CAN SELECT THEIR FORUM THEY
CAN SUE IN EITHER STATE OR FEDERAL COURT FOR ALLEGED FMLA VIOLATIONS
ACCORDING TO THE LABOR DEPARTMENT ANY VIOLATION OF THE FMLA OR THE
REGULATIONS AMOUNTS TO AN UNLAWFUL INTERFERENCE WITH RESTRAINT OR DENIAL OF
FMLA RIGHTS THE FMLA PROHIBITION AGAINST DISCRIMINATION MEANS THAT
EMPLOYERS WILL NOW HAVE TO ADD A NEW CATEGORY TO THE LAUNDRY LIST OF
PROTECTED CLASSES AGAINST WHICH EMPLOYMENT DISCRIMINATION IS PROHIBITED
EMPLOYEES WHO TAKE FMLA LEAVES

IT REQUIRES LITTLE IMAGINATION TO ENVISION A LAWSUIT IN WHICH AN EMPLOYEE
CLAIMS THAT A DISCHARGE OR A FAILURE TO OBTAIN A PROMOTION CONSTITUTED
UNLAWFUL DISCRIMINATION BASED ON THE EMPLOYER'S PREVIOUS TAKING OF AN FMLA
LEAVE THE FMLA VIRTUALLY GUARANTEES THIS KIND OF LITIGATION BY PROVIDING
THAT AN EMPLOYEE SHALL BE AWARDED REASONABLE ATTORNEY FEES IN A SUCCESSFUL
LAWSUIT

AMERICAN EMPLOYMENT LAW CONTINUES TO EVOLVE IN THE DIRECTION OF INCREASING
THE RIGHTS OF EMPLOYEES AND DECREASING THEIR OBLIGATIONS TO THEIR EMPLOYERS
THE FMLA LIKE THE AMERICANS WITH DISABILITIES ACT REPRESENTS AN
ACCELERATION OF THIS TREND THE COSTS AND OPERATIONAL BURDENS IMPOSED ON
EMPLOYERS BY THE NEW LAW MAKE IT HIGHLY UNLIKELY THAT EMPLOYERS WILL DEVELOP
HIGHPERFORMANCE WORK ORGANIZATIONS AS PREDICTED BY THE LABOR DEPARTMENT
A MORE LIKELY OUTCOME IS THAT THE FMLA WILL MERELY ADD TO EMPLOYERS'
ADMINISTRATIVE AND LEGAL EXPENSES AND DETRACT FROM THEIR ABILITY TO OPERATE
COMPETITIVELY AND EFFICIENTLY

MR KLOTZ IS AN EMPLOYMENT LAWYER IN TROY MICH SEE RELATED LETTER
LETTERS TO THE EDITOR FMLA POWER TO THE EMPLOYEES SEPT 1 1993
9308030049 YY93 MM09 9309010106 930825 BUSINESS BRIEF ADVANCED MEDICAL
LABORATORIES INC COMPANY PLANS TO REDUCE WORLDWIDE STAFF BY 240

ADVANCED MEDICAL LABORATORIES INC HURT BY THE RECESSION IN EUROPE AS WELL
AS BY DELAYED MEDICAL PURCHASES IN THE US SAID IT WOULD REDUCE ITS
WORLDWIDE WORK FORCE BY 240 PEOPLE OR 11 AS PART OF A RESTRUCTURING

THE BOTHELL WASH MAKER OF MEDICAL ULTRASOUND SYSTEMS SAID IT WOULD INCUR
A ONETIME CHARGE OF APPROXIMATELY 43 MILLION FOR THE THIRD QUARTER TO
PROVIDE FOR SEVERANCE PAYMENTS AND OTHER COSTS ASSOCIATED WITH THE
RESTRUCTURING

FOR THE YEAREARLIER THIRD QUARTER ADVANCED MEDICAL HAD NET INCOME OF 13
MILLION OR 11 CENTS A SHARE ON REVENUE OF 782 MILLION

THE COMPANY SAID ITS CUSTOMERS ARE DELAYING THE PURCHASE OF MEDICAL
EQUIPMENT BECAUSE THEY ARE UNCERTAIN ABOUT WHAT THE ADMINISTRATION'S
HEALTHCARE REFORM WILL BRING

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 9308310153 930831 ENTERPRISE 
BUSINESS OF BACKGROUND CHECKING COMES TO THE FORE  DESPITE LEGAL
CONSTRAINTS AND CRITICISM SCREENING FIRMS THRIVE EXPAND  BY
EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL

LIKE MOST SMALL EMPLOYERS PAUL YORK'S AUTO DEALERSHIPS IN CORPUS CHRISTI
TEXAS DON'T HAVE THE STAFF TO THOROUGHLY SCREEN THE BACKGROUNDS OF
PROSPECTIVE EMPLOYEES SO THE COMPANIES FARM THE TASK OUT TO A FIRM OF
PROFESSIONAL SLEUTHS A TREND THAT HAS TURNED SPEEDY RESUME CHECKS OF JOB
SEEKERS INTO A HEALTHY BUSINESS

THE RESULT PERHAPS 20 TIMES IN THE PAST TWO YEARS INVESTIGATORS AT AVERT
INC FORT COLLINS COLO HAVE UNCOVERED PROBLEMS WITH THE DRIVING RECORDS
OF JOB APPLICANTS AT MR YORK'S TOYOTA AND MITSUBISHI DEALERSHIPS MOST
CASES INVOLVED SUSPENDED PERMITS OR MOVING VIOLATIONS THAT HADN'T BEEN
DISCLOSED ON THE PROSPECTIVE EMPLOYEE'S HIRING FORM AN EXECUTIVE SAYS

A CHECKERED DRIVING HISTORY IS A RED FLAG FOR A COMPANY THAT DAILY SENDS
CUSTOMERS ON THE ROAD FOR TEST DRIVES WITH ITS EMPLOYEES MR YORK THE
DEALERSHIPS' PRESIDENT CALLS AVERT'S FEE ONE OF THE BEST INVESTMENTS I
MAKE EVERY MONTH

ENOUGH EMPLOYERS SHARE HIS ENTHUSIASM TO MAKE BACKGROUND CHECKS OF JOB
APPLICANTS A GROWTH INDUSTRY AND INCREASINGLY SMALL COMPANIES ARE ELBOWING
THEIR WAY INTO TERRITORY THAT USED TO BELONG TO PRIVATE INVESTIGATORS AND
GIANT CREDITREPORTING FIRMS

IN RECENT YEARS CRITICS HAVE ASSAILED BACKGROUNDCHECKING SERVICES AS
THREATS TO PRIVACY GOVERNMENT AGENCIES HAVE STEPPED UP REGULATORY PRESSURE
YET THE INDUSTRY IS FARING BETTER THAN EVER

FUELED BY THE LITIGATION EXPLOSION AND BY THE OUTLAWING OF LIEDETECTOR
TESTS FOR JOB CANDIDATES THE SEARCHES HAVE EXPANDED TO INCLUDE A MARKET
BASKET OF BIOGRAPHICAL DATA FROM EMPLOYMENT CREDIT HISTORY AND EDUCATIONAL
BACKGROUND TO WORKERS' COMPENSATION CLAIMS DRIVING VIOLATIONS AND CRIMINAL
RECORDS

BY ELECTRONICALLY TAPPING INTO PUBLIC RECORDS AND BY BUYING THE
COMPUTERIZED RECORDS OF CREDITREPORTING FIRMS THE SCREENING FIRMS SAY THEY
CAN TURN AROUND SOME RESUME REQUESTS IN 24 HOURS FOR A FEW DOLLARS PER
SEARCH

THE MORE EFFICIENT THE PROCESS GETS THE MORE CRITICS WARN OF PRIVACY LOSS
EVEN THOUGH SCREENING FIRMS INSIST THEY DON'T FORWARD INFORMATION TO AN
EMPLOYER UNLESS THEY HAVE A RELEASE SIGNED BY THE JOB SEEKER THERE IS ALSO
THE POTENTIAL FOR MISUSE OF INFORMATION

I THINK THERE'S SOME BLACKLISTING GOING ON SAYS ALLYN TATUM COMMISSIONER
OF ARKANSAS'S WORKERS' COMPENSATION COMMISSION HE REFERS TO THE CHARGE THAT
EMPLOYERS HAVE OCCASIONALLY GONE BEYOND CHECKING FOR ABUSE OF WORKERS'
COMPENSATION CLAIMS AND REFUSED TO HIRE WORKERS WHO HAVE HAD ANY WORKPLACE
INJURIES

THE GOVERNMENT HAS TRIED TO LIMIT ABUSE OF THIS INFORMATION THROUGH
ENFORCEMENT OF THE FAIR CREDIT REPORTING ACT OF 1978 AND ENACTMENT LAST
SUMMER OF THE AMERICANS WITH DISABILITIES ACT PART OF THE STATUTE OF THE
ACT SHARPLY LIMITS THE TYPE AND TIMING OF HEALTHRELATED INQUIRIES THAT
EMPLOYERS CAN MAKE ABOUT PEOPLE IT WANTS TO HIRE

BUT THE CONTROVERSY DOESN'T SEEM TO HAVE HURT THE GROWTH OF THE
RESUMECHECKING INDUSTRY ON THE CONTRARY THERE HAS BEEN A SHARP INCREASE
OVER THE YEARS IN THE NUMBER OF FIRMS OFFERING TO VERIFY RESUMES AND PROBE
DEEPER INTO EMPLOYEE HISTORIES OTHERS IN THE FIELD NOW INCLUDE DAC
SERVICES TULSA OKLA CARCO GROUP INC ST JAMES NY RECORDS SEARCH
INC DAVIE FLA AND CDB INFOTEK SANTA ANA CALIF

SMALLCOMPANY OWNERS SAY THEY ESPECIALLY NEED THE HELP BECAUSE THEY LACK THE
TIME AND KNOWLEDGE TO DEAL WITH CHECKING THE RESUMES OF AN INCREASINGLY
MOBILE WORK FORCE THERE'S ALSO FEAR OF FALLING AFOUL OF THE COMPLEX HIRING
RULES LAID OUT IN THE DISABILITIES ACT

WE'RE A SMALL COMPANY IF I TRIED TO DO THIS ON MY OWN IT WOULD CREATE A
TWOPERSON POSITION SAYS CORNELL GETHMANN VICE PRESIDENT OF GETHMANN
CONSTRUCTION CO GLADBROOK IOWA HE SAYS ANYONE OFFERED A JOB FROM TOP
ENGINEER DOWN TO CONSTRUCTION WORKER GETS A PROFESSIONAL SCREEN

EMPLOYERS OF ALL SIZES SAY THEY WORRY ABOUT A RISING TREND TOWARD
NEGLIGENTHIRING SUITS IN WHICH JURIES HAVE FAULTED EMPLOYERS FOR NOT
HAVING LOOKED THOROUGHLY ENOUGH INTO THE BACKGROUND OF AN EMPLOYEE WHO LATER
COMMITS A WORKRELATED CRIME

DEREK HINTON PRODUCTDEVELOPMENT MANAGER FOR DAC SERVICES A FIRM THAT
SPECIALIZES IN RUNNING BACKGROUND CHECKS ON DRIVERS FOR TRUCKING COMPANIES
SAYS BUSINESS OWNERS HAVE TO WEIGH EMPLOYEES' RIGHT TO PRIVACY WITH THEIR
OWN EXPOSURE TO LAWSUITS SUPPOSE A COMPANY HIRES A DRIVER WITH A HISTORY OF
TRAFFIC ARRESTS AND SUPPOSE HE THEN CRASHES HIS TRUCK ON A CROWDED FREEWAY
HE SAYS ALL OF A SUDDEN THERE'S A JURY SCREAMING WHAT DO YOU MEAN YOU
DIDN'T LOOK INTO HIS BACKGROUND' MR HINTON SAYS DAC IS A UNIT OF T/SF
COMMUNICATIONS CORP

A DAC UNIT NATIONAL EMPLOYMENT SCREENING SERVICES PUBLISHES A 936PAGE
REFERENCE VOLUME GUIDE TO BACKGROUND INVESTIGATIONS THAT TELLS HOW TO MAKE
PUBLICRECORD SEARCHES AT FEDERAL AGENCIES AND IN US STATES AND COUNTIES
AND CANADIAN PROVINCES THE FIRM SAYS IT HAS SOLD MORE THAN 13000 BOOKS AT
125 APIECE

WHEN AVERT GOT STARTED IN 1986 IT SPECIALIZED IN CHECKING ON THE HISTORY OF
WORKERS' COMPENSATION CLAIMS BY PROSPECTIVE EMPLOYEES

IN 1990 THE FIRM BEGAN AGGRESSIVELY MARKETING A BROADER RANGE OF SEARCH
SERVICES AVERT'S MARKETING VICE PRESIDENT MICHAEL DEWITT SAYS THAT TODAY
ABOUT 40 OF CLIENT INQUIRIES RELATE TO WORKERS' COMPENSATION HISTORIES 25
TO FELONY CONVICTIONS AND 20 TO DRIVING RECORDS

MR DEWITT CALLS HIS FIRM A ONESTOP SHOP FOR EMPLOYERS WHO DON'T HAVE
TIME TO CHECK EVERY REFERENCE AND ARE WORRIED THAT JOB SEEKERS MAY BE
FUDGING FACTS ON THEIR APPLICATIONS HE ESTIMATES THAT ABOUT 70 OF THE
FIRM'S CLIENTS ARE COMPANIES WITH FEWER THAN 200 WORKERS

AVERT'S FEES RANGE FROM 250 PLUS A STATE FEE FOR AN OVERNIGHT CHECK OF A
STATE MOTORVEHICLE DEPARTMENT FILE TO A MINIMUM 13 FOR A FELONY CHECK IT
ASKS FOR A 250 DEPOSIT UP FRONT AND ADDS THAT NOT ALL RECORDS ARE PUBLIC
IN ALL STATES THE COMPANY ESTIMATES 1993 SALES OF 45 MILLION UP FROM
34 MILLION IN 1992 AND 27 MILLION IN 1991 9308310152 930831 WHO'S
NEWS REVCO DS INC

REVCO DS INC TWINSBURG OHIO D DWAYNE HOVEN 51 YEARS OLD
PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DISCOUNT DRUGSTORE CHAIN WAS
NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER REVCO SAID MR
HOVEN HAS FUNCTIONED AS CHIEF EXECUTIVE DURING THE PAST YEAR THE POST
HADN'T BEEN FILLED AFTER THE DISMISSAL IN JUNE 1992 OF REVCO'S THENCHAIRMAN
AND CHIEF EXECUTIVE OFFICER BOAKE A SELLS 9308310151 930831 WHO'S NEWS
 BCE INC

BCE INC MONTREAL IAN D MCELROY 43 YEARS OLD WAS NAMED PRESIDENT AND
CHIEF EXECUTIVE OF THIS TELECOMMUNICATIONS CONCERN'S PUBLICLY TRADED BCE
MOBILE COMMUNICATIONS INC UNIT EFFECTIVE SEPT 7 MR MCELROY PREVIOUSLY
VICE PRESIDENT SERVICES AT INTERNATIONAL BUSINESS MACHINES CORP'S IBM
CANADA LTD UNIT SUCCEEDS JOHN T MCLENNAN 48 RECENTLY NAMED PRESIDENT OF
BCE INC'S BELL ONTARIO UNIT MR MCLENNAN REMAINS BCE MOBILE CHAIRMAN
9308310150 930831 WHO'S NEWS LTV CORP

LTV CORP CLEVELAND HAROLD A POLING 67 YEARS OLD CHAIRMAN AND CHIEF
EXECUTIVE OF FORD MOTOR CO WAS ELECTED A DIRECTOR OF THIS STEELMAKER AND
OILFIELD PRODUCTS AND EQUIPMENT CONCERN THE APPOINTMENT BRINGS LTV'S BOARD
SIZE TO 13 MEMBERS THE COMPANY SAID ONE ADDITIONAL DIRECTOR WILL BE ADDED
TO THE BOARD IN THE FUTURE TO COMPLETE ITS NEW 14MEMBER BOARD THE UNITED
STEELWORKERS OF AMERICA IS EXPECTED TO NOMINATE THAT DIRECTOR THE COMPANY
SAID 9308310149 930831 TECHNOLOGY IN THE LAB AIR CONDITIONERS 
LEARN TO SENSE IF YOU'RE COOL  BY AMAL KUMAR NAJ STAFF REPORTER
OF THE WALL STREET JOURNAL

IMAGINE AN AIR CONDITIONER THAT STARTS AUTOMATICALLY WITH A GENTLE HUM
OF COURSE THE MOMENT YOU WALK INTO THE ROOM AND WHAT'S MORE IT
RECOGNIZES YOU REMEMBERS YOUR PREFERENCE FOR COMFORT AND MAINTAINS THE
ROOM'S TEMPERATURE HUMIDITY AND AIR FLOW TO YOUR LIKING

EVER SO VIGILANT TO PLEASE YOU IT WOULDN'T STOP THERE SUPPOSE SITTING IN
THAT IDEAL ENVIRONMENT YOU SUDDENLY BREAK OUT IN A SWEAT SAY YOU RECEIVED
SOME BAD NEWS ON THE PHONE NOT TO WORRY THE AIR CONDITIONER WILL TRY TO
COMFORT YOU IN AS MUCH AS IT CAN BY LOWERING YOUR SKIN TEMPERATURE AND
TWEAKING THE LEVEL OF HUMIDITY AND AIR FLOW ALL THE WHILE IT WILL MONITOR
THE INDOOR AIR QUALITY CAPTURING SAY RADON GASES OR CHEMICALS EMITTED BY
RUGS FURNITURE AND THE HUMAN BODY

THE DEVELOPMENT OF SUCH AN IDEAL AIR CONDITIONER IS THE GOAL OF A GROUP OF
RESEARCHERS AT UNITED TECHNOLOGIES CORP INDEED MANUFACTURERS AROUND THE
WORLD ARE TRYING TO REDEFINE THE ROLE OF THE AIR CONDITIONER WINDOW AS
WELL AS CENTRAL UNITS PROMPTED BY THE READY AVAILABILITY OF SOPHISTICATED
TECHNOLOGIES FROM SENSORS TO ELECTRONICS THEY THINK THAT WITH THE AID OF
THESE TECHNOLOGIES THE AIR CONDITIONER SHOULD MORE THAN JUST REGULATE THE
TEMPERATURE OF A SPACE IT SHOULD REGULATE COMFORT

IN THE FUTURE THERMOSTAT WILL BE REPLACED BY COMFORTSTAT SAYS ERIC
ADAMS THE PRINCIPAL RESEARCHER AT UNITED TECHNOLOGIES' RESEARCH AND
DEVELOPMENT CENTER IN HARTFORD CONN THE COMPANY'S CARRIER CORP UNIT IS
THE WORLD'S LARGEST MANUFACTURER OF AIR CONDITIONING SYSTEMS

SINCE THE INVENTION OF ITS BASIC TECHNOLOGY IN 1902 THE AIR CONDITIONER HAS
GONE THROUGH BOTH SIGNIFICANT AND EVOLUTIONARY CHANGES BUT THROUGHOUT ITS
GOAL HAS BEEN TO PROVIDE COMFORT IN TERMS OF THERMAL ENVIRONMENT SAYS MR
ADAMS THAT IDEAL COMFORT ZONE HAD BEEN SET BY THE INDUSTRY AS ONE WITH
TEMPERATURES BETWEEN 70 AND 80 DEGREES FAHRENHEIT AND RELATIVE HUMIDITY OF
50 TO 60

NOW WE'RE ASKING WHAT OTHER CONDITIONS MAKE US FEEL COMFORTABLE AND HOW WE
CAN MAXIMIZE THAT STATE OF BEING AND IT SUGGESTS SIGNIFICANT CHANGES IN OUR
PRODUCTS SAYS MR ADAMS

WHAT THOSE CONDITIONS MIGHT BE HAS BEEN THE SUBJECT OF LONGTIME RESEARCH AT
SEVERAL ACADEMIC INSTITUTIONS INCLUDING THE PIERCE LABORATORY AT YALE
UNIVERSITY AND THE INSTITUTE OF ENVIRONMENTAL RESEARCH AT KANSAS STATE
UNIVERSITY THE BASIC RESEARCH HAS ESTABLISHED THE PARAMETERS FOR LEVELS AND
TYPES OF NOISE HUMIDITY AIR FLOW HEAT AND AIR QUALITY THAT THE HUMAN
BODY FINDS COMFORTABLE THE CHALLENGE IS TO INCORPORATE ALL ASPECTS OF
COMFORT SIMULTANEOUSLY INTO THE AIR CONDITIONER SAYS MR ADAMS

THE RESEARCHERS ARE ATTEMPTING THAT IN A LABORATORY AN 18FOOTBY24FOOT
ROOM THAT'S DESIGNED TO LOOK LIKE A LIVING ROOM ACTUALLY IT LOOKS MORE LIKE
A ROOM THAT HAS BEEN HEAVILY BUGGED

EMBEDDED IN ITS WALLS ARE ZIGZAGGING PIPES THAT CARRY WARM OR COLD WATER TO
SIMULATE THE EFFECTS OF DIFFERENT WEATHER PATTERNS SENSORS ATTACHED TO THE
WALLS CONTINUALLY MEASURE TEMPERATURE COOL AIR IS PUMPED INTO THE ROOM AT
CHANGING RATES AND SENSOR DEVICES DANGLING FROM THE CEILING MEASURE AIR
VELOCITY AT DIFFERENT LOCATIONS OF THE ROOM TO CREATE THREEDIMENSIONAL
PICTURES OF DRAFT ANOTHER GROUP OF SENSORS MONITORS HUMIDITY LEVELS

THE RESEARCHERS ARE TRYING TO UNDERSTAND HOW VARIOUS ELEMENTS AMBIENT AND
BODY HEAT HUMIDITY PATTERN OF AIR FLOW AND THE MOVEMENT OF OCCUPANTS 
INTERACT THEY HOPE EVENTUALLY TO USE THE KNOWLEDGE IN MODELS THAT WOULD
DIRECT CONTROL DEVICES TO CONTINUALLY ADJUST THE AIR CONDITIONER TO OFFER
IDEAL COMFORT UNDER CHANGING CONDITIONS

THE RESEARCH IS STILL IN ITS EARLY STAGES BUT THE RESEARCHERS SAY THEY HAVE
ALREADY MADE SOME INTERESTING OBSERVATIONS FOR INSTANCE TO COMPENSATE FOR
RANDOM INCREASES IN HEAT SAY FROM SUNLIGHT ENTERING INTO THE ROOM THE AIR
CONDITIONER NEEDN'T LOWER AIR TEMPERATURE TO MAINTAIN THE SAME LEVEL OF
COOLNESS AS BEFORE THE RISING TEMPERATURE CAN BE MORE EFFICIENTLY
COMPENSATED BY INCREASING AIR SPEED ANOTHER IS THAT RISING HUMIDITY CAN BE
COMPENSATED BY LOWERING TEMPERATURE THE ULTIMATE GOAL IS TO FIND
TRADEOFFS SO THAT IF ONE ELEMENT CHANGES WE CAN COMPENSATE IT WITH
SOMETHING ELSE SAYS MR ADAMS

THE EXPERIMENTS ALSO ARE AIMED AT UNDERSTANDING HOW BEST TO DIRECT AIR FLOW
WITHOUT CREATING UNCOMFORTABLE LOCAL DRAFTS AND AT DEVELOPING INFRARED
DEVICES THAT COULD MEASURE OCCUPANTS' BODY TEMPERATURES AND DIRECT THE AIR
CONDITIONER TO MAKE COMPENSATING ADJUSTMENTS THE RESEARCHERS ALSO ARE
DEVELOPING FUZZY LOGIC AND OTHER SYSTEMS OF ARTIFICIAL INTELLIGENCE THAT
WILL ENABLE THE AIR CONDITIONER TO RECOGNIZE INDIVIDUALS AND THEIR
PREPROGRAMMED PREFERENCES AND WHEN IT IS FACED WITH COMFORTING MORE THAN
ONE PERSON AT THE SAME TIME THE UNIT WOULD CHOOSE THE BEST POSSIBLE
COMBINATION OF CONDITIONS FOR THE MOST NUMBER OF PEOPLE

ONE MODEL WE ARE DEVELOPING IS HOW CLOTHING AFFECTS THE HEAT OUTPUT OF
PEOPLE WE CAN SEE THE AIR CONDITIONER RECOGNIZE WHETHER YOU ARE WEARING A
TSHIRT OR A SWEATER AND ADJUST THE TEMPERATURE AND HUMIDITY LEVELS
ACCORDINGLY SAYS LARRY BERGLUND A RESEARCHER AT YALE'S PIERCE LABORATORY
WHOSE RESEARCH IS BEING APPLIED AT THE UNITED TECHNOLOGIES LAB

MAINTAINING GOOD INDOOR AIR QUALITY IS GOING TO BE A SIGNIFICANT PART OF
DELIVERING COMFORT SAYS JOHN CASSIDY THE HEAD OF RESEARCH AND DEVELOPMENT
AT UNITED TECHNOLOGIES ONE ELEMENT HE SAYS THE RESEARCHERS ARE PURSUING
AS A PROXY FOR INDOOR QUALITY IS THE PRODUCTION OF CARBON DIOXIDE INSIDE THE
ROOM IT CORRELATES WITH BODY ODOR ONE OF THE THINGS THAT CAUSE
STUFFINESS SAYS MR CASSIDY

THE AIR CONDITIONERS CURRENTLY DON'T EXPEL INDOOR AIR MR CASSIDY SAYS THE
RESEARCHERS AT THE COMPANY ARE CONSIDERING TWO OPTIONS TO MAINTAIN AIR
QUALITY ONE IS TO CONTINUALLY BRING OUTSIDE AIR THROUGH THE AIR
CONDITIONER AND THE OTHER IS TO DEVELOP A FILTER THAT WOULD CAPTURE
POLLUTANTS AND TURN THEM INTO SOMETHING THAT IS NOT ANNOYING TO HEALTH

ULTIMATELY THE ENTIRE COMFORT PACKAGE MUST BE DELIVERED IN A SIZE THAT
DOESN'T ADD TO THE NOISE THE BIG SELLING POINT OF AIR CONDITIONERS
INCREASINGLY IS SMALLER AND SMALLER SIZE THE PROBLEM IS THAT THE SMALLER
THE SIZE THE GREATER THE NOISE GENERATED BY THE COMPRESSOR AND THE BLOWER
FAN ANOTHER GROUP OF UNITED TECHNOLOGIES RESEARCHERS IS CONSIDERING NEW FAN
DESIGNS AND PATHWAYS TO DIRECT THE COOLED AIR IN AN EFFORT TO CUT DOWN ON
NOISE

THE AIR CONDITIONER IS TAKEN FOR GRANTED BUT IT IS A COMPLEX MACHINERY
SQUEEZED INTO A VERY SMALL SPACE SAYS BRUCE MORIN A SOUND ENGINEER AT THE
UNITED TECHNOLOGIES LAB

THERE IS A LOT OF PRESSURE ON CARRIER TO DEVELOP THE NEXT GENERATION OF AIR
CONDITIONERS THE MARKET IS HIGHLY COMPETITIVE WHILE CARRIER ACCOUNTS FOR
11 OF THE WORLDWIDE MARKET ITS NEXT SEVEN COMPETITORS ARE JAPANESE EACH
WITH A SHARE OF 4 TO 8 OF THE MARKET AND THE JAPANESE AIR CONDITIONERS
WHICH ALREADY HAVE SOME OF THE FEATURES CARRIER IS WORKING ON ARE THE MOST
SOPHISTICATED PRODUCTS ON THE MARKET SAYS MR ADAMS 9308310148 930831
ANHEUSERBUSCH CALLS NOTES

ST LOUIS ANHEUSERBUSCH COS CALLED FOR THE REDEMPTION OF ITS 8 NOTES
DUE OCT 1 1996 THE NOTES WILL BECOME DUE AND PAYABLE THIS OCT 1 AT 100
OF THE PRINCIPAL AMOUNT INTEREST WILL STOP ACCRUING AFTER THAT DATE THE
BREWER SAID 9308310147 930831 ABREAST OF THE MARKET STOCKS CLOSE WITH
MODERATE GAINS AS TRADERS ANTICIPATE THE HOLIDAY  BY CAITLIN
MOLLISON SPECIAL TO THE WALL STREET JOURNAL

NEW YORK THE IMPENDING LABOR DAY WEEKEND SAPPED SOME STRENGTH FROM STOCKS
IN LATE ACTION AFTER THE DOW JONES INDUSTRIAL AVERAGE TRADED AT RECORD
LEVELS FOR MUCH OF THE SESSION

BUT STOCK PRICES STILL MANAGED A MODERATELY HIGHER FINISH AS BOND PRICES
TOOK OFF AGAIN

TRADERS SAW COMPUTERGUIDED PROGRAMS THROUGHOUT THE DAY THAT KEPT THE
INDUSTRIALS BOUNCING AROUND THE BAROMETER ROSE 336 TO 364399 WITHIN A
STONE'S THROW OF THE RECORD HIGH OF 365209 SET WEDNESDAY

THE STANDARD & POOR'S 500STOCK INDEX GAINED 136 TO 46190 AND THE NEW
YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 064 TO 25604 BOTH INDEXES SAILED
PAST THEIR PREVIOUS ALLTIME HIGHS

BIG BOARD ADVANCERS OUTRAN DECLINING STOCKS 1120 TO 780 NYSE VOLUME WAS
THIN AT 191340000 SHARES COMPARED WITH 194790000 SHARES FRIDAY

IT'S A SLEEPY SUMMER MARKET BUT STOCKS ARE STILL ACTING EXTREMELY WELL
SAID JOHN BURNETT SENIOR VICE PRESIDENT OF BLOCK TRADING AT DONALDSON
LUFKIN & JENRETTE WE'RE GOING TO LIVE WITH LOW VOLUME THROUGH FRIDAY HE
SAID

STRONGER OVERSEAS MARKETS GAVE EQUITY PRICES AN EARLY BOOST OBSERVERS SAID
SHARE PRICES CLOSED HIGHER IN FRANKFURT AND TOKYO THE LONDON MARKET WAS
CLOSED FOR A HOLIDAY

BUT SURGING BOND PRICES PROVIDED MOST OF THE SUPPORT BONDS JUMPED ON NEWS
THAT NEWHOME SALES LAST MONTH FELL 5 ANALYSTS HAD FORECAST A 1 DECLINE

A SECOND REPORT SHOWED THAT THE SECONDQUARTER MERCHANDISE TRADE DEFICIT
WIDENED TO 3439 BILLION THE WORST LEVEL IN FIVE YEARS

THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ALSO TOPPED A RECORD SET ON
FRIDAY RISING 128 TO 45627

NATIONAL MEDICAL ENTERPRISES WAS THE DAY'S MOST ACTIVE STOCK ON VOLUME OF
FIVE MILLION SHARES ABOUT EIGHT TIMES ITS AVERAGE DAILY LEVEL THE WALL
STREET JOURNAL REPORTED THAT FEDERAL AGENTS ARE SEEKING EVIDENCE LINKING
SUSPECTED CRIMINAL MISCONDUCT BY MANY OF THE COMPANY'S HOSPITALS WITH
POLICIES AND DIRECTIVES ISSUED BY TOP CORPORATE EXECUTIVES

ON THURSDAY FEDERAL AGENTS RAIDED MORE THAN 20 NATIONAL MEDICAL FACILITIES
THE COMPANY'S SHARES FELL 1/4 TO 7 1/2 YESTERDAY

FIBREBOARD CLIMBED 4 3/4 TO 20 1/4 IN AMEX TRADING AFTER ANNOUNCING IT HAS
REACHED A PRELIMINARY PACT WITH PLAINTIFFS' REPRESENTATIVES AND ITS INSURERS
ON THE TERMS OF A CLASSACTION SETTLEMENT OF ALL FUTURE ASBESTOS PERSONAL
INJURY LIABILITY CLAIMS

ALSO FIBREBOARD SAID IT IS NEGOTIATING AN AGREEMENT WITH ITS INSURERS
CONTINENTAL CASUALTY WHICH IS A UNIT OF CNA FINANCIAL AND PACIFIC
INDEMNITY A UNIT OF CHUBB

CNA FINANCIAL FELL 3/4 TO 86 1/2 AND CHUBB 1 1/2 TO 88 3/8

QUALMED LEAPED 1 3/8 TO 15 1/2 ON NEWS THAT IT WILL MERGE WITH HEALTH NET
AN HN MANAGEMENT HOLDINGS SUBSIDIARY

NEWS OF ANOTHER MERGER DROVE RAMSAYHMO'S STOCK PRICE 7/8 HIGHER TO 28 1/4
THE COMPANY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE MIAMI DADE HEALTH
PLANS

A DEAN WITTER REYNOLDS DOWNGRADE TO NEUTRAL FROM BUY FORCED IMC
FERTILIZER'S SHARES DOWN 1 3/8 TO 28 1/4 HARVEY STOBER AN ANALYST AT DEAN
WITTER CUT HIS 1994 EARNINGS ESTIMATE TO A LOSS OF 20 CENTS A SHARE FROM
NET INCOME OF 150 A SHARE HE CITED A DETERIORATION OF THE POTASH MARKET

IMPROVED EARNINGS HELPED CUC INTERNATIONAL TO RISE 2 1/4 TO 32 1/2 THE
COMPANY REPORTED SECONDQUARTER NET OF 18 CENTS A SHARE UP FROM 13 CENTS A
YEAR EARLIER

ENTREE ALSO GOT A 7/8 BOOST TO 6 1/8 AFTER REPORTING THAT FISCAL
FIRSTQUARTER EARNINGS JUMPED TO 121000 FROM 22000 A YEAR EARLIER

TELECOM OF NEW ZEALAND DROPPED 5/8 TO 41 7/8 THE NATIONAL TELEPHONE COMPANY
SAID ITS PROGRAM OF REDUCING COSTS ESPECIALLY BY CUTTING STAFF IS WELL
AHEAD OF BUDGET

THE US BABY BELLS SURGED HOWEVER BELL ATLANTIC IMPROVED 2 1/8 TO 63 1/4
AMERITECH 2 1/4 TO 86 1/8 NYNEX 1 7/8 TO 91 1/4 AND BELLSOUTH 1 1/4 TO 58
1/4

AIRLINE STOCKS WERE WEAK UAL FELL 1 3/4 TO 145 1/4 DELTA AIR LINES 1 TO 53
1/2 AND SOUTHWEST AIRLINES 1 TO 34 1/2 9308310146 930831 FINNISH
COMPANY'S RIGHTS ISSUE

STOCKHOLM UNITAS OY A FINNISH BANKING AND FINANCIAL CONCERN SAID
SHAREHOLDERS AT A SPECIAL MEETING APPROVED A PROPOSAL FOR A RIGHTS ISSUE OF
A MAXIMUM OF 116 BILLION FINNISH MARKKAA 1994 MILLION

HOLDERS ALSO AUTHORIZED THE BOARD TO DECIDE NO LATER THAN SEPT 13 ON A
DIRECTED NEWSHARE ISSUE OF 300 MILLION MARKKAA PLANS FOR THE NEW ISSUES
WERE UNVEILED EARLIER IN AUGUST

UNITAS SAID THE SUBSCRIPTION PERIOD FOR THE RIGHTS ISSUE WILL BE SEPT 13 TO
OCT 13 9308310145 930831 ENRON PLANS RUSSIAN GAS PROJECT

HOUSTON ENRON CORP AND RAO GAZPROM A MAJOR NATURAL GAS COMPANY IN
RUSSIA SIGNED AN AGREEMENT TO DEVELOP NEW MARKETS FOR NATURAL GAS IN THE
EUROPEAN POWER MARKET

THE COMPANIES WILL JOINTLY IDENTIFY AND DEVELOP POWER GENERATION PROJECTS
USING RUSSIAN NATURAL GAS AS FUEL ONCE DEVELOPMENT OF A SPECIFIC PROJECT
BEGINS ENRON WILL RAISE PROJECT FINANCING AND GAZPROM WILL BE RESPONSIBLE
FOR DELIVERING GAS GAZPROM IS EXPECTED TO PARTICIPATE IN ALL PROJECTS AS A
DIRECT EQUITY INVESTOR 9308310144 930831 REVIEW & OUTLOOK EDITORIAL 
COOPTING THE PLO

WHEREVER IT LEADS ISRAEL'S PROPOSED LANDFORPEACE DEAL WITH THE PALESTINE
LIBERATION ORGANIZATION IS AT LEAST BASED ON THE ACKNOWLEDGMENT BY BOTH
SIDES OF CERTAIN REALITIES THE OPEN QUESTION IS WHETHER THE REALITIES THAT
MADE THE DEAL POSSIBLE WILL MAKE ITS IMPLEMENTATION IMPOSSIBLE

AS ANNOUNCED BY ISRAELI PRIME MINISTER YITZHAK RABIN'S OFFICE SUNDAY AND
APPROVED BY THE CABINET YESTERDAY ISRAEL HAS AGREED TO GIVE THE PLO
ADMINISTRATIVE CONTROL OVER THE GAZA STRIP AND THE WEST BANK CITY OF
JERICHO THE PLO AGREES TO END THE INTIFADA A LOWLEVEL GUERRILLA WAR
AGAINST ISRAELI TROOPS AND ADMINISTRATIVE AUTHORITIES IN PALESTINIAN AREAS

THE DEAL WAS STRUCK BETWEEN ISRAELI FOREIGN MINISTER SHIMON PERES AND A
HIGH PLO OFFICIAL REPORTEDLY FINANCE OFFICER AHMED KRAI THE TALKS WERE
SECRET BUT ISRAEL HAS BEEN OPENLY TREATING INDIRECTLY WITH THE PLO MAINLY
THROUGH THE PALESTINIAN DELEGATION TO THE USPROMOTED MIDEAST PEACE TALKS
FOR 22 MONTHS

DOING BUSINESS WITH THE PLO BREAKS A LONGSTANDING ISRAELI VOW NOT TO DEAL
WITH TERRORISTS IN DOING SO ISRAEL IS TACITLY ADMITTING ITS INABILITY TO
MAINTAIN ADMINISTRATIVE CONTROL OVER THE WEST BANK AND GAZA THE EFFORTS
THERE HAVE BEEN A MESSY BUSINESS WITH ISRAELI TROOPS SOMETIMES BAITED INTO
FIRING ON ARAB YOUTHS THUS PRESENTING THEMSELVES AND ISRAEL IN A BAD LIGHT
TO WORLD OPINION OTHER DRASTIC MEASURES SUCH AS BANNING PALESTINIANS WHO
HAD JOBS IN ISRAEL HAVE ONLY WORSENED ECONOMIC CONDITIONS IN PALESTINIAN
AREAS AND CONTRIBUTED TO THE APPETITES THERE FOR CRIME AND CIVIL
DISOBEDIENCE

THE PLO IS FACED WITH HARSH REALITIES AS WELL IT IS IN DIRE FINANCIAL
STRAITS THE DECISION BY ITS PRESIDENT YASSER ARAFAT TO SIDE WITH IRAQ IN
THE GULF WAR COST HIM SAUDI FINANCIAL SUPPORT AND THE EXPULSION FROM KUWAIT
OF WELLPAID PALESTINIANS WHO HAD BEEN A MAJOR SOURCE OF REMITTANCES THESE
PALESTINIANS INSTEAD BECAME A FURTHER DRAIN ON THE PLO'S EXTENSIVE WELFARE
SYSTEM

THE PLO'S BUDGET HAS BEEN MORE THAN HALVED AND LARGELY AS A RESULT ITS
INFLUENCE AMONG PALESTINIANS AND IN THE ARAB WORLD GENERALLY HAS BEEN
WANING THIS WEAKENING OF THE PLO'S POSITION NO DOUBT MADE IT MORE AMENABLE
TO ACCEPTING HALF A LOAF ONLY A TOEHOLD ON THE WEST BANK RATHER THAN
HOLDING OUT FOR MORE

SO THE TIME WAS RIPE FOR AGREEMENT WHAT NEITHER SIDE CAN FORETELL IS
WHETHER THIS DEAL WILL STRENGTHEN THE PLO OR FURTHER WEAKEN IT YASSER
ARAFAT MAY INSTALL HIMSELF IN A VILLA ON THE MEDITERRANEAN IN GAZA AND LIVE
LIKE THE PRINCE HE ALWAYS HAS WANTED TO BE BUT WILL TODAY'S PALESTINIANS BE
WILLING SUBJECTS WILL HE BE ABLE TO DELIVER HIS END OF THE BARGAIN WITH
ISRAEL WINDING DOWN OF THE INTIFADA AND RESTORING CIVIL ORDER IN GAZA AND
THE WEST BANK

THE PLO WITH ITS ORIGINS IN THE ARAB SOCIALIST MOVEMENT WAS BY AND LARGE
SECULAR AS IT HAS BECOME WEAKER RELIGIOUS RADICALS HAVE GROWN STRONGER
ARAB FUNDING PARTICULARLY FROM WEALTHY SAUDIS HAS SHIFTED TO THESE GROUPS
THEY HAVE SET UP MEDICAL FACILITIES AND SCHOOLS TO ATTRACT FOLLOWERS SOME
ARE PROVING AS EFFECTIVE AS THE PLO IN LAUNCHING TERRORIST ATTACKS

MOREOVER ARAFAT IS UNDER PRESSURE FROM THE MILITANT WING OF THE PLO ITSELF
MUNIR MAKHDAH COMMANDER OF THE 3000MAN PLO MILITIA IN LEBANON LAST WEEK
CALLED ON ARAFAT TO RESIGN ACCUSING HIM OF BEGGARING TENS OF THOUSANDS OF
PALESTINIANS THROUGH FINANCIAL MISMANAGEMENT

MR RABIN FOR HIS PART FACES RESISTANCE FROM ISRAELI HAWKS IN PARTICULAR
THOSE CONCERNED ABOUT THE FUTURE OF ISRAELI WEST BANK SETTLEMENTS AND HOMES
IN GAZA HE IS STRESSING THAT WORKING OUT ARRANGEMENTS FOR TRANSFERRING
ADMINISTRATIVE CONTROL TO THE PLO WILL TAKE MANY MONTHS

THE DEAL HAS THE IMPRIMATUR OF US SECRETARY OF STATE WARREN CHRISTOPHER
WHO ANNOUNCED THAT THE US IS WORKING ON DETAILS WITH THE ISRAELIS WHAT IS
NOT KNOWN IS WHETHER THIS WILL ALSO BE A MONEYFORPEACE DEAL AS WAS THE
CAMP DAVID ACCORD AND IF SO WHO IS TO PUT UP THE MONEY IT WOULD BE AN
IRONY IF THE PLO HAVING LOST ARAB FUNDING SHOULD END UP AS YET ANOTHER
WARD OF THE GENEROUS BUT ALSO CASHSHORT WEST IF THAT IS TO BE THE CASE
IT MIGHT BE USEFUL TO ASCERTAIN FIRST WHETHER THE ENFEEBLED PLO IS ABLE TO
DELIVER THE GOODS 9308310143 930831 WHO'S NEWS LIBBY INC

LIBBY INC TOLEDO OHIO KENNETH G WILKES 35 YEARS OLD FORMERLY VICE
PRESIDENT SENIOR CORPORATE OFFICER OF FIRST NATIONAL BANK OF CHICAGO'S
CLEVELAND OFFICE WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND
TREASURER OF THIS MAKER OF GLASS TABLEWARE 9308310142 930831 INTERMET TO
CLOSE FOUNDRY

ATLANTA INTERMET CORP SAID IT WILL PERMANENTLY CLOSE ITS LOWER BASIN
FOUNDRY IN LYNCHBURG VA BY THE END OF 1993

THE DECISION WILL RESULT IN A PRETAX CHARGE OF 20 MILLION TO 24 MILLION IN
THE THIRD QUARTER

INTERMET A PROVIDER OF IRON PARTS TO AUTOMOTIVE AND INDUSTRIAL COMPANIES
SAID THE FOUNDRY IS ITS OLDEST FACILITY AND WOULD HAVE NEEDED MAJOR CAPITAL
INVESTMENTS TO MEET INCREASINGLY STRINGENT ENVIRONMENTAL REGULATIONS

INTERMET ALSO SAID THAT THE FOUNDRY HAS HAD WEAK OPERATING RESULTS IN RECENT
YEARS ABOUT 600 PEOPLE ARE EMPLOYED AT THE FACILITY 9308310141 930831
ARIZONA INSTRUMENT RELOCATES

PHOENIX ARIZONA INSTRUMENT CORP HAS RELOCATED ITS HEADQUARTERS TO A NEW
35000SQUAREFOOT FACILITY HERE FROM TEMPE ARIZ

THE COMPANY SAID THE MOVE CONSOLIDATES DEPARTMENTS THAT HAD BEEN LOCATED IN
THREE SEPARATE BUILDINGS 9308310140 930831 BUILDERS TRANSPORT CLOSES DEAL

CAMDEN SC BUILDERS TRANSPORT INC COMPLETED ITS PURCHASE OF VERNON
MILLING CO'S VAN UNIT

EARLIER THIS MONTH THE COMPANY SAID IT WOULD PAY FOR THE ASSETS THROUGH THE
ASSUMPTION OF EQUIPMENTRELATED DEBT AND THE ISSUANCE OF 125000 BUILDERS
TRANSPORT COMMON SHARES

THE VALUE OF THE TRANSACTION WAS NOT DISCLOSED VERNON MILLING IS A CLOSELY
HELD COMPANY BASED IN VERNON ALA 9308310139 930831 WHO'S NEWS FLEET
MORTGAGE PRESIDENT

COLUMBIA SC FLEET MORTGAGE GROUP INC SAID IT NAMED ROBERT T GOLITZ
PRESIDENT AND CHIEF OPERATING OFFICER

MR GOLITZ 52 YEARS OLD SUCCEEDS ANDREW D WOODWARD JR AS PRESIDENT MR
WOODWARD 46 WILL CONTINUE TO SERVE AS CHAIRMAN AND CHIEF EXECUTIVE THE
POSITION OF CHIEF OPERATING OFFICER IS NEWLY CREATED FLEET SAID

MR GOLITZ IS THE FORMER SENIOR VICE PRESIDENT OF NEW BUSINESS VENTURES AT
AT&T UNIVERSAL CARD SERVICES CORP IN JACKSONVILLE FLA

FLEET AN ORIGINATOR AND SERVICER OF MORTGAGE LOANS IS 81 OWNED BY FLEET
FINANCIAL GROUP INC OF PROVIDENCE RI 9308310138 930831 INTERNATIONAL
 SOMBERNESS PROVES POLITICALLY CORRECT FOR HEAD OF GERMAN SOCIAL
DEMOCRATS  BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET
JOURNAL

MAINZ GERMANY IN THE 2 1/2 MONTHS SINCE BECOMING CHAIRMAN OF GERMANY'S
OPPOSITION SOCIAL DEMOCRATS RUDOLF SCHARPING HAS SHOWN HIMSELF TO BE
RELENTLESSLY UNFLASHY AND EARNEST ALMOST TO THE POINT OF GRIMNESS

IT SEEMS TO BE JUST WHAT GERMAN VOTERS NOW LOOK FOR IN A POLITICIAN

WEARING SOBER SUITS AND COTTON SHIRTS INSTEAD OF THE LOUD JACKETS AND SILK
SHIRTS FAVORED BY SOME PARTY COLLEAGUES MR SCHARPING SEEMS DETERMINED TO
STEER THE LEFTOFCENTER SOCIAL DEMOCRATS BACK TO THE PARTY'S WORKINGCLASS
ROOTS THE PARTY'S NEW STANDARDBEARER WITH HIS WELLTRIMMED BEARD HAS
MADE KNOWN HIS FONDNESS FOR SOCCER AND GERMAN CUISINE A FAR CRY FROM THE
ART CONNOSSIEURSHIP AND GOURMET TASTES OF THE SOCALLED TUSCANY FACTION THAT
HAS HELD SWAY IN THE PARTY FOR FIVE YEARS

THE NEW/OLD LOOK COULD HELP THE SOCIAL DEMOCRATIC PARTY WHICH OUT OF POWER
AND RIVEN BY INTERNAL CONFLICT FOR 11 LONG YEARS IS ONE OF WESTERN EUROPE'S
MOST HAPLESS PARTIES THE 45YEAROLD PREMIER OF THE RHINELAND PALATINATE IS
RIDING A WAVE OF POPULARITY THAT PUTS HIM AS MUCH 14 POINTS AHEAD OF
CHANCELLOR HELMUT KOHL IN POLL RATINGS THOUGH THE STANDINGS OF EACH MAN'S
PARTY ARE MUCH CLOSER

YET DISENCHANTMENT WITH POLITICS IN GERMANY IS PERVASIVE POLITICAL ANALYSTS
SAY POPULAR SUPPORT FOR THE SOCIAL DEMOCRATS AND MR KOHL'S CHRISTIAN
DEMOCRATS HAS DECLINED SO SUBSTANTIALLY SINCE GERMAN UNIFICATION THAT AFTER
THE NEXT FEDERAL ELECTION IN FALL 1994 NEITHER WILL BE ABLE TO FORM A
GOVERNMENT WITHOUT THE OTHER SUCH A GRAND COALITION HAS HAPPENED ONLY
ONCE IN THE LATE 1960S

MR KOHL HAS LONG DENIGRATED GRAND COALITIONS BUT HE FOR THE FIRST TIME
RECENTLY LEFT THE DOOR OPEN TO GOVERNING WITH THE SOCIAL DEMOCRATS AND WITH
GERMANY ENTERING A YEARLONG POLITICAL ROLLER COASTER INVOLVING 17 LOCAL AND
STATE ELECTIONS THE SPECULATIVE FEVER IS BOUND TO GROW

SPEAKING IN HIS OFFICE IN MAINZ MR SCHARPING WHO BECAME PARTY CHAIRMAN
AFTER PREDECESSOR BJOERN ENGHOLM WAS DRIVEN OUT BY SCANDAL CLAIMS HE THINKS
NOTHING AT ALL ABOUT A GRAND COALITION INSTEAD HE AIMS TO CAPITALIZE ON
WIDESPREAD DISGRUNTLEMENT WITH THE KOHL GOVERNMENT'S HANDLING OF THE
COUNTRY'S ECONOMIC RECESSION AND UNEMPLOYMENT THAT COULD RISE TO MORE THAN
FOUR MILLION JOBLESS NEXT YEAR

IN A NATION WHERE THERE IS FREQUENT TALK OF A CLINTON EFFECT A LONGING
FOR A YOUTHFUL CENTERLEFT FIGURE PROMISING TO CUT DEFICITS TO REPLACE A
WORN COLD WARERA LEADERSHIP MR SCHARPING'S STRATEGY SEEMS TO BE A PAGE
FROM LAST YEAR'S US PRESIDENTIAL CAMPAIGN THUS MR SCHARPING COMPLAINS
ABOUT ACCUMULATED PUBLIC DEBT THAT HAS REACHED 927 BILLION OR 63 OF GROSS
DOMESTIC PRODUCT AND KEPT INTEREST RATES ELEVATED WE NEED A CONSOLIDATION
OF OUR PUBLIC FINANCES BUT THIS POLICY CANNOT ON GROUNDS OF SOCIAL
JUSTICE BE ONESIDED

A FAVORITE TARGET IS A GOVERNMENT SAVINGS PROGRAM UNVEILED IN JUNE THAT AIMS
TO CUT SPENDING BY 12 BILLION MUCH OF IT FROM SOCIAL BENEFITS HE POINTS
OUT THAT 75 OF THIS WILL COME OUT OF A LOWERINCOME LEVEL UNEMPLOYED OR
PEOPLE WITH LOW INCOMES AND CHILDREN  THE GOVERNMENT IS FIGHTING THE
UNEMPLOYED IT WOULD DO BETTER TO FIGHT UNEMPLOYMENT

THIS COSTCUTTING APPROACH HAS OMINOUS IMPLICATIONS MR SCHARPING WARNS
THE RISK IS GROWING THAT GERMANS WILL TURN AWAY FROM THE DEMOCRATIC
PARTIES AND HE IMPLIES TOWARD THE FAR RIGHT WE NEED INTELLIGENT
SAVINGS HE SAYS BUT SUGGESTS STARTING WITH A STATE BUREAUCRACY THAT IS
TOO LARGE AND WITH SUBSIDIES IN CERTAIN AREAS HIS PRESCRIPTION LACKS
DETAILS BUT HE STATES IT WITH MORE CREDIBILITY THAN MANY SOCIAL DEMOCRATS
HAVING TRIMMED THE BUREAUCRACY IN HIS STATE

WITH ITS DEFENSE OF LOWERINCOME EARNERS AND APPEAL TO FEARS OF HIGH
GOVERNMENT INDEBTEDNESS MR SCHARPING'S MESSAGE IS COMPELLING IN
PARTICULAR EASTERN GERMANS WHOSE SUPPORT FOR MR KOHL WAS CRUCIAL IN HIS
1990 ELECTION VICTORY BUT HAS MELTED UNDER THE EFFECT OF 30 EFFECTIVE
UNEMPLOYMENT ARE LIABLE TO BE ATTRACTED TO MR SCHARPING

KOHL AIDES WHO HAVE OBSERVED WITH GLEE THE CHRONIC DISARRAY IN THE SOCIAL
DEMOCRATIC PARTY ACKNOWLEDGE THAT THIS NEW CHALLENGER IS BEING TAKEN MORE
SERIOUSLY MR SCHARPING EVEN HAS MADE HIS NAME IN MR KOHL'S HOME STATE A
TRADITIONAL CHRISTIAN DEMOCRATIC STRONGHOLD WHERE THE CHANCELLOR WAS PREMIER
FOR SEVEN YEARS UNTIL MR SCHARPING'S 1991 VICTORY THE SOCIAL DEMOCRATS
HAD NEVER WON A MAJORITY IN THE STATE

IN HIS ROLE AS A NEGOTIATOR WITH THE GOVERNMENT OVER CHANGING THE COUNTRY'S
ASYLUM LAW AND THE SOCALLED SOLIDARITY PACT FOR FINANCING RECONSTRUCTION IN
EASTERN GERMANY MR SCHARPING HAS TRIED TO ESTABLISH THE SOCIAL DEMOCRATS'
COMPETENCE TO DEAL WITH NATIONAL ISSUES HE ALSO HAS STAKED OUT POSITIONS
THAT ADDRESS WHAT HAS BECOME KNOWN AS THE GENERAL INSECURITY OF ORDINARY
CITIZENS

HE CRITICIZES THE GOVERNMENT'S PLAN TO ATTACK ORGANIZED CRIME AS TOO LAX
AND TO IMPROVE GERMAN COMPETITIVENESS HE ARGUES THAT WORK RULES HAVE TO BE
MADE MORE FLEXIBLE SO THAT MACHINERY CAN RUN LONGER THOUGH HE OPPOSES
LENGTHENING THE WORK WEEK THE MORE CAPITALINTENSIVE AN ECONOMY IS THE
MORE IMPORTANT IT IS TO MAKE USE OF CAPACITY HE SAYS A POSITION NOT FAR
FROM THE GOVERNMENT'S

BUT FOR MR SCHARPING TO CASH IN ON HIS POPULARITY HE MUST BRING ORDER TO A
PARTY THAT SEEMS TO THRIVE ON INTERNAL CONFLICT

FOR EXAMPLE ON THE ISSUE OF WHAT KIND OF UNITED NATIONS MISSIONS THE GERMAN
MILITARY COULD PARTICIPATE IN HE APPEARED EARLIER TO TAKE THE POSITION THAT
ANYTHING THE UN SANCTIONED WOULD BE ACCEPTABLE FOR GERMAN FORCES BUT IN
RECENT WEEKS A PARTY ROW ERUPTED OVER WHETHER GERMANS SHOULD PARTICIPATE IN
ARMED MISSIONS

UNDER PARTY PRESSURE MR SCHARPING RETREATED GERMANY SHOULD WITHOUT
QUALIFICATION PARTICIPATE IN MISSIONS SUCH AS THOSE KNOWN IN GERMANY AS BLUE
HELMET ONES IE PEACEKEEPING BUT HE ADDS MY CONVICTION IS THAT
GERMANY SHOULDN'T TAKE PART IN DIRECT WARMAKING 9308310137 930831 STAFF
BUILDERS COMPLETES PACT

LAKE SUCCESS NY STAFF BUILDERS INC SAID IT HAS RECEIVED ALL
REGULATORY APPROVAL NECESSARY AND HAS COMPLETED THE ACQUISITION OF THE
OPERATIONS OF THE ALBERT GALLATIN VISITING NURSE ASSOCIATION INC OF
UNIONTOWN PA

THE COMPANY SAID THE ACQUISITION WHICH WAS MADE IN EXCHANGE FOR THE
ASSUMPTION OF LIABILITIES AND OTHER COSTS OF ACQUISITION COST STAFF
BUILDERS ABOUT 15 MILLION

THE COMPANY SAID ALBERT GALLATIN HAD REVENUE OF ABOUT 20 MILLION FOR THE
FISCAL YEAR ENDED DEC 31 THE COMPANY SAID THE FIRM PROVIDES HOME
HEALTHCARE SERVICES IN FIVE COUNTIES IN WESTERN PENNSYLVANIA AND THREE
COUNTIES IN WEST VIRGINIA 9308310136 930831 CACI COMARCO END MERGER
DISCUSSIONS

ARLINGTON VA CACI INTERNATIONAL INC AND COMARCO INC ENDED THEIR
MERGER DISCUSSIONS ENDING A FOURMONTH FLIRTATION BETWEEN THE TWO
COMPANIES

CACI AND COMARCO SIGNED A LETTER OF INTENT TO MERGE IN APRIL BUT THAT
UNRAVELED WHEN A MAJOR COMARCO SHAREHOLDER PROTESTED THE METHOD OF
ACCOUNTING BEING USED IN THE MERGER AFTER SCRAPPING THE ORIGINAL PLAN AN
ALLSTOCK TRANSACTION THE FIRMS DECIDED TO CONTINUE TALKING

THE DISCUSSIONS LOST THEIR MOMENTUM SAID JACK LONDON CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF CACI AND WE JUST BEGAN TO LOSE INTEREST MR LONDON
SAID THAT NO SPECIFIC EVENT LED TO THE TERMINATION OF THE MERGER TALKS

WE ARE DISAPPOINTED THAT WE WERE UNABLE TO FINALIZE A MERGER WITH CACI AS
WE FEEL THAT THEY ARE AN EXCELLENT COMPANY WITH A BRIGHT FUTURE SAID DON
M BAILEY PRESIDENT AND CHIEF EXECUTIVE OFFICER AT COMARCO ANAHEIM CALIF

CACI AN INFORMATIONSERVICES COMPANY HAS ANNUAL REVENUE OF ABOUT 145
MILLION COMARCO WHICH PROVIDES COMPUTER SYSTEMS HARDWARE AND SOFTWARE
PRODUCTS AND SERVICES HAD 1992 REVENUE OF ABOUT 85 MILLION

IN OVERTHECOUNTER TRADING CACI CLASS A SHARES SLIPPED 625 CENTS TO
4375 WHILE COMARCO WAS UNCHANGED AT 4625 9308310135 930831
FIBREBOARD SETS ASBESTOS ACCORD WITH INSURERS  CNA CHUBB AGREE
TO PAY AN ESTIMATED 3 BILLION TO COVER ALL CLAIMS  BY GREG
STEINMETZ AND MARILYN CHASE STAFF REPORTERS OF THE WALL STREET JOURNAL

TWO INSURERS HAVE AGREED TO PAY AN ESTIMATED 3 BILLION FOR ASBESTOS CLAIMS
AGAINST FIBREBOARD CORP IN WHAT WOULD BE ONE OF THE LARGEST
PRODUCTLIABILITY SETTLEMENTS IN US HISTORY

THE AGREEMENT ENDING MORE THAN A DECADE OF LITIGATION WAS STRUCK BETWEEN
FIBREBOARD AND THE INSURERS CNA FINANCIAL CORP AND CHUBB CORP ALONG WITH
PLAINTIFFS' REPRESENTATIVES THE FUND CREATES A MECHANISM TO PAY CLAIMS OF
AN ESTIMATED 325000 PEOPLE WHO MAY HAVE BEEN HARMED BY ASBESTOS
MANUFACTURED BY FIBREBOARD FROM THE EARLY 1940S TO THE LATE 1960S

UNDER THE PLAN THE INSURERS AGREED TO SET UP A 15 BILLION TRUST FUND TO
COVER ANY FUTURE ASBESTOS CLAIMS THE INSURERS ALSO AGREED TO PAY CLAIMS FOR
CASES THAT HAVE EITHER BEEN SETTLED OR ARE PENDING BUT HAVEN'T YET BEEN
PAID THE COST OF THOSE CLAIMS IS ESTIMATED AT ANOTHER 15 BILLION SOME
104000 CASES HAVE BEEN SETTLED BUT NOT YET FULLY PAID A FURTHER 62000
CASES ARE PENDING

IF THE AGREEMENT WINS COURT APPROVAL FIBREBOARD SAID THE CONCORD CALIF
COMPANY WILL HAVE NO FURTHER UNREIMBURSED EXPENSES STEMMING FROM ASBESTOS
PERSONAL INJURY LIABILITIES AND CAN ONCE MORE FUNCTION AS A NORMAL
COMPANY IN GAINING ACCESS TO EQUITY AND DEBT FINANCING

FIBREBOARD STOCK WHICH HAS LONG BEEN SHADOWED BY THE COMPANY'S HUGE
EXPOSURE SURGED 306 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING RISING
475 TO CLOSE AT 2025

FIBREBOARD WILL ALSO CONTRIBUTE TO THE SETTLEMENT FUND ALTHOUGH IT WOULDN'T
SAY HOW MUCH FIBREBOARD SAID ITS SHARE WHICH WOULD COME FROM EXISTING
RESERVES OF 178 MILLION PLUS OTHER INSURANCE WOULDN'T HURT EARNINGS

UNLIKE MANVILLE CORP ANOTHER FORMER ASBESTOS MAKER AND AH ROBINS CO
THE MAKER OF THE DALKON SHIELD CONTRACEPTIVE DEVICE FIBREBOARD NEVER SOUGHT
RELIEF FROM ITS LOSSES UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ONE
REASON IS THE OPENENDED NATURE OF ITS INSURANCE POLICIES THE POLICIES
WRITTEN BY CNA'S CONTINENTAL CASUALTY CO AND CHUBB'S PACIFIC INDEMNITY CO
WERE UNUSUAL IN THAT THEY PROVIDED UNLIMITED COVERAGE FUNDS CREATED TO
SETTLE CLAIMS AGAINST MANVILLE AND AH ROBINS EACH EXCEEDED 2 BILLION

FIBREBOARD WAS CLEARLY INCAPABLE OF RESPONDING TO THE NEEDS OF THE VICTIMS
WITHOUT INSURANCE SAID OAKLAND ATTORNEY STEVEN KAZAN WHO REPRESENTED
FIBREBOARD VICTIMS FIBREBOARD PROBABLY WOULD HAVE SOUGHT BANKRUPTCY
PROTECTION HAD IT NOT SETTLED WITH THE INSURANCE COMPANIES

IN ANTICIPATION OF THE FIBREBOARD SETTLEMENT THE TWO INSURERS BEGAN
BUILDING RESERVES MONTHS AGO BOTH BOOSTED THOSE RESERVES FURTHER WITH
YESTERDAY'S SETTLEMENT CNA THE PARENT OF CONTINENTAL CASUALTY CO AND AN
83OWNED UNIT OF NEW YORKBASED LOEWS CORP SAID IT WILL TAKE AN AFTERTAX
CHARGE IN THE THIRD QUARTER OF 325 MILLION OR 526 A SHARE AFTER
BOOSTING ITS FIBREBOARD RESERVES BY 500 MILLION LOEWS WILL TAKE AN
AFTERTAX CHARGE OF 270 MILLION OR 417 A SHARE

THE ADDITIONAL 500 MILLION RESERVE SURPRISED ANALYSTS BECAUSE AT YEAR END
THEY BELIEVED CNA HAD ALREADY COVERED ITSELF AT THAT TIME CNA PUT UP A
15 BILLION RESERVE TO COVER ITS FIBREBOARD LOSSES WE DIDN'T EXPECT THEM
TO COME BACK AND BOLSTER THE RESERVES SO SOON SAID JOHN SNYDER SENIOR
VICE PRESIDENT OF AM BEST CO AN INSURANCE RATING AGENCY

CHUBB THROUGH ITS PACIFIC INDEMNITY UNIT WILL CONTRIBUTE 538 MILLION TO
THE TRUST FUND AS A RESULT CHUBB WILL TAKE AN AFTERTAX CHARGE OF 358
MILLION OR 395 A SHARE IN THE THIRD QUARTER RESULTING IN A LOSS FOR THE
PERIOD CHUBB IS ADDING 675 MILLION TO ITS FIBREBOARD RESERVE BOOSTING ITS
TOTAL FIBREBOARD RESERVE TO 125 BILLION

IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CNA CLOSED AT 8650 DOWN 75
CENTS LOEWS CLOSED AT 9450 UP 25 CENTS CHUBB CLOSED AT 88375 DOWN
150

AM BEST DOWNGRADED CNA TO A FROM APLUS THE RATING IS STILL CONSIDERED
EXCELLENT BUT THE DOWNGRADE WILL MAKE IT HARDER FOR CNA TO COMPETE WITH
HIGHERRATED CARRIERS

CNA AND CONTINENTAL CASUALTY REMAIN STRONG COMPANIES SAID DENNIS
CHOOKASZIAN CNA CHAIRMAN AND CHIEF EXECUTIVE OFFICER

AM BEST CONFIRMED CHUBB'S RATING OF ADOUBLE PLUS BEST'S HIGHEST GRADE
MR SNYDER SAID THAT CHUBB IS AN EXTREMELY WELLCAPITALIZED INSURER IN
ADDITION THE COMPANY OFFSET PART OF THE THIRDQUARTER LOSS BY RECORDING A
125 MILLION GAIN ON THE CANCELLATION OF A MEDICAL MALPRACTICE REINSURANCE
AGREEMENT

OTHER INSURERS HAVE SUFFERED MAJOR LOSSES ON ASBESTOS CLAIMS BUT THE
FIBREBOARD MATTER IS ONE OF THE LARGEST THE FIBREBOARD AGREEMENT COMES WHEN
THE INSURANCE INDUSTRY HAS PUT MOST OF ITS ASBESTOS PROBLEMS BEHIND IT
ASBESTOS EXPOSURES ARE WINDING DOWN MR SNYDER SAID HE SAID A BIGGER
ISSUE FOR THE INDUSTRY IS POLLUTION CLAIMS INSURANCE COMPANIES HAVE ONLY
BEGUN TO RESERVE FOR ENVIRONMENTAL LOSSES

FIBREBOARD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN D ROACH SAID THAT
REMOVING THE CLOUD OF UNCERTAINTY CREATED BY ASBESTOS WILL ALLOW US TO
PURSUE SIGNIFICANT EXPANSION OPPORTUNITIES AND ACQUISITIONS WITHIN OUR CORE
BUSINESS GROUPS FIBREBOARD HAS OPERATIONS IN WOOD PRODUCTS INSULATION
PRODUCTS AND SKI RESORTS

FOR FIBREBOARD THIS IS AN ENORMOUSLY SIGNIFICANT EVENT SAID LAWRENCE
FITZPATRICK PRESIDENT OF THE CENTER FOR CLAIMS RESOLUTION PRINCETON NJ
A GROUP OF 20 FORMER ASBESTOS PRODUCERS THIS IS PROBABLY THE LARGEST
INSURANCE SETTLEMENT BY A SINGLE ASBESTOS PRODUCER HE SAID THE BIGGEST
ASBESTOS SETTLEMENT OF ALL TIME REMAINS THE SOCALLED WELLINGTON AGREEMENT
A MULTICOMPANY PACT IN WHICH 32 PRODUCERS AND 16 INSURANCE COMPANIES
RESOLVED THEIR CLAIMS IN JUNE 1985 HE SAID 9308310134 930831 SAS CANCELS
FLIGHTS AMID STRIKE

COPENHAGEN SCANDINAVIAN AIRLINES SYSTEM CANCELED INTERNATIONAL AND
DOMESTIC FLIGHTS YESTERDAY FOLLOWING A STRIKE BY DANISH CABIN PERSONNEL WHO
ARE OBJECTING TO LONGER WORKING HOURS THAT STEM FROM PERSONNEL CUTBACKS

THE STRIKE COSTS US BETWEEN 10 MILLION DANISH KRONER 15 MILLION AND 15
MILLION DANISH KRONER EVERY DAY SAID AN SAS SPOKESMAN

YESTERDAY WAS THE SECOND DAY OF THE STRIKE BY DANISH CABIN PERSONNEL THE
STRIKE IS EXPECTED TO CONTINUE THROUGH TODAY ALTHOUGH BOTH SIDES EXPRESSED
WILLINGNESS TO RESUME TALKS

ABOUT 120 OVERSEAS AND DOMESTIC FLIGHTS TO AND FROM COPENHAGEN WERE CANCELED
YESTERDAY COPENHAGEN IS THE SCANDINAVIAN CARRIER'S HUB AIRPORT

THE AIRLINE IS OWNED BY SWEDEN NORWAY AND DENMARK BUT SWEDISH AND NORWEGIAN
CABIN STAFF AREN'T INVOLVED IN THE STRIKE BECAUSE THEY ARE IN SEPARATE
UNIONS FROM THE DANISH CABIN PERSONNEL 9308310133 930831 ECONOMY NEW
HOME SALES FELL 5 IN JULY DATA INDICATE

WASHINGTON SALES OF NEW SINGLEFAMILY HOUSES DROPPED 5 IN JULY TO AN
ANNUAL RATE OF 629000 ACCORDING TO THE COMMERCE DEPARTMENT

THE REPORT IS SUBJECT TO LARGE REVISIONS LAST MONTH'S DECLINE FOLLOWED A
REVISED INCREASE OF 33 IN JUNE ORIGINALLY REPORTED AS AN 11 RISE THE
FIGURES ARE SEASONALLY ADJUSTED

THE NUMBERS ARE DISAPPOINTING IN MY VIEW BUT THEY ARE STILL HIGHER THAN A
YEAR AGO SAID MARK OBRINSKY SENIOR ECONOMIST OF THE FEDERAL NATIONAL
MORTGAGE ASSOCIATION I EXPECTED AN INCREASE BECAUSE OF THE LOWER MORTGAGE
RATES WE GET THESE NUMBERS THAT BOUNCE AROUND A LOT BUT IF WE SMOOTH THEM
OUT WE SEE IMPROVEMENTS OVER LAST YEAR

THE DECLINE IN SALES IS NOT NECESSARILY RELATED TO THIS SUMMER'S FLOODING IN
THE MIDWEST ACCORDING TO THE COMMERCE DEPARTMENT THE LARGEST DECLINE WAS
IN THE SOUTH 9308310132 930831 ROCHE UNIT'S DRUG IS APPROVED

NUTLEY NJ HOFFMANNLA ROCHE INC SAID IT RECEIVED FOOD AND DRUG
ADMINISTRATION APPROVAL TO MARKET ITS ANTIBIOTIC ROCEPHIN AS A ONCEADAY
TREATMENT OF PEDIATRIC BACTERIAL MENINGITIS

PREVIOUSLY TREATMENT OF CHILDREN USING THE BROADSPECTRUM ANTIBIOTIC
REQUIRED TWO INJECTIONS A DAY A SPOKESWOMAN SAID ADDING THAT OTHER
ANTIBIOTICS CALL FOR THREE TO SIX DAILY DOSAGES THE PHARMACEUTICAL COMPANY
IS THE US AFFILIATE OF THE GROUP OF COMPANIES HEADED BY ROCHE HOLDING
LTD BASEL SWITZERLAND 9308310131 930831 ASTRUM TO BUY HILLENBRAND UNIT

NEW YORK ASTRUM INTERNATIONAL CORP A SALES AND MANUFACTURING HOLDING
COMPANY SAID IT HAS CLOSED ITS PURCHASE OF HILLENBRAND INDUSTRIES INC'S
AMERICAN TOURISTER UNIT FOR ABOUT 68 MILLION

ASTRUM FORMERLY KNOWN AS EII HOLDINGS INC SAID IT WILL OPERATE AMERICAN
TOURISTER AS A SEPARATE UNIT AND SAID IT PLANS TO EXPAND ITS PRODUCT LINES
AND INCREASE NATIONAL AND INTERNATIONAL MARKETING

THE COMPANY ALSO SAID IT HAS INCREASED ITS CREDIT FACILITIES TO 150 MILLION
FROM 100 MILLION BY A GROUP OF BANKS LED BY BANK OF BOSTON AND CITICORP
9308310130 930831 OTC FOCUS NASDAQ STOCKS CLING TO THE DAY'S GAINS 
DEFYING THE TREND SET BY OTHER MARKETS  BY LARRY BAUMAN SPECIAL TO
THE WALL STREET JOURNAL

NEW YORK NASDAQ STOCKS MANAGED TO HOLD ON TO THE BULK OF YESTERDAY'S
GAINS UNLIKE THEIR COUNTERPARTS AT THE NEW YORK STOCK EXCHANGE AND IN THE
BOND MARKET WHERE PRICES FELL FROM THE SESSION HIGHS HIT EARLIER IN THE
DAY

THE NASDAQ COMPOSITE INDEX ENDED THE DAY UP 331 POINTS OR 045 AT
73738 THE NASDAQ 100 INDEX GAINED 08

ON THE BIG BOARD THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 064 OR
025 TO 25604 THE DOW JONES INDUSTRIAL AVERAGE ENDED THE DAY WITH A GAIN
OF 336 TO 364399 AFTER PEAKING NEAR 3655 AT MIDAFTERNOON

PRICES ON THE 30YEAR TREASURY BOND WHICH HAD BEEN UP ABOUT 1/2POINT WERE
UP ABOUT 1/4POINT LATE IN THE DAY THE YIELD ON THE LONG BOND WAS ABOUT
611

WE STAYED UP ALL DAY AS THE BIG BOARD SOLD OFF SAID ROBERT ANTOLINI HEAD
OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE HE SAID THAT
WHILE SELL PROGRAMS APPEAR TO HAVE CONTRIBUTED TO THE BIG BOARD'S LATEDAY
DECLINE THE PROGRAMS DIDN'T HIT THE NASDAQ MARKET

MUCH OF THE ATTENTION AMONG NASDAQ STOCKS MR ANTOLINI SAID WAS CENTERED
AROUND SHARES OF SNAPPLE BEVERAGE CORP WHICH WAS UP 3 OR 58 AT 54 3/4
FOLLOWING FRIDAY'S 2 1/4 OR 45 GAIN

ANALYSTS SAID SNAPPLE'S CONTINUING SURGE IS BEING FUELED BY A ROUND OF
SHORTCOVERING THAT FOUND ADDITIONAL MOMENTUM YESTERDAY ADAM FEILD
SNAPPLE'S MANAGER OF FINANCIAL PLANNING SAID THE COMPANY IS COMFORTABLE
WITH TWO RECENTLY UPGRADED 1993 EARNINGS ESTIMATES WHICH PUT EARNINGS IN
THE 88CENTTO90CENT RANGE THOSE ESTIMATES COMPARE WITH EARNINGS OF 28
CENTS ON PRO FORMA BASIS IN 1992 SNAPPLE WENT PUBLIC IN DECEMBER

ADVANCING ISSUES BEAT OUT DECLINERS 1415 TO 1314 ON NASDAQ NATIONAL
MARKET SYSTEM VOLUME OF 223344000 COMPARED WITH 201966500 FRIDAY

ANALYSTS SAID THE NASDAQ MARKET GOT SUPPORT FROM CONTINUED INTEREST IN MAJOR
TECHNOLOGY AND COMMUNICATIONS ISSUES AND ALSO FROM ACTIVITY IN MORE
SPECULATIVE STOCKS

SOFTWARE STOCKS LIKE MICROSOFT AND LOTUS SEEMED TO BE ACTING BETTER
THAN ANY OTHER GROUP SAID DONALDSON LUFKIN & JENRETTE'S MR ANTOLINI
MICROSOFT WAS UP 3/4 OR 1 AT 72 5/8 AND LOTUS DEVELOPMENT POSTED A GAIN
OF 2 1/2 OR 81 TO 33 1/2

EUGENE PERONI DIRECTOR OF TECHNICAL RESEARCH AT JANNEY MONTGOMERY SCOTT
SAID THAT TECHNOLOGY COMMUNICATIONS AND FIBEROPTIC STOCKS ARE SHOWING
GOOD LEADERSHIP ALTHOUGH SOME INDIVIDUAL STOCKS HAVE RECENTLY BEEN A BIT
CORRECTIVE

MR PERONI WARNED THE MARKET IS SHOWING INDICATIONS THAT IT IS IN A
LATESTAGE ADVANCE HE SAID SPECULATION IN SECONDARY AND EVEN TERTIARY
ISSUES IS SUPPORTING THE OTC MARKET

LOTUS DEVELOPMENT SHARES ROSE AFTER DONALDSON LUFKIN & JENRETTE UPGRADED THE
STOCK TO BUY FROM MODERATELY ATTRACTIVE CITING THE COMPANY'S STRONG AND
BROAD POSITION IN THE MARKET FOR WINDOWS SOFTWARE

DESIGNS INC WAS UP 1 5/8 OR 107 AT 16 7/8 ON NEWS THAT IT IS IN
DISCUSSIONS WITH LEVI STRAUSS ABOUT THE FORMATION OF A JOINT VENTURE FOR THE
OPERATION OF LEVI STORES

GRAND CASINOS WHICH POSTED A GAIN OF 2 1/8 OR 89 AND CLOSED AT 26 1/8
SAID REVENUE FOR THE FOUR WEEKS ENDED AUG 1 WAS 153 MILLION COMPARED
WITH 16 MILLION A YEAR AGO

AMERICAN POWER CONVERSION FELL SHARPLY FOLLOWING AN ARTICLE IN THIS WEEK'S
BARRON'S THAT SUGGESTED THE STOCK IS OVERVALUED DESPITE THE COMPANY'S
IMPRESSIVE GROWTH AND FINANCIAL POSITION THE STOCK WAS DOWN 3/4 OR 17
AT 42 3/4 HAVING TRADED AS LOW AS 40 3/8

HARVARD INTERNATIONAL TECHNOLOGIES FELL 5 1/2 TO 12 AFTER THE COMPANY WAS
REPORTED BY BARRON'S AS SAYING THAT IT MAY NOT RECEIVE ALL 258 MILLION IT
PREVIOUSLY SAID IT HAD IN CONTRACTS FOR ITS FRENCHFRIED POTATO VENDING
MACHINES

SYBASE POSTED A GAIN OF 2 OR 34 RISING TO 61 1/2 FOLLOWING POSITIVE
COMMENTS ABOUT THE COMPANY IN THE WALL STREET JOURNAL'S HEARD ON THE STREET
COLUMN 9308310129 930831 TECHNOLOGY & HEALTH QUALMED AND HN
MANAGEMENT UNIT AGREE TO MERGER VALUED AT 775 MILLION  BY ROBERT
TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL

AMID CONSOLIDATION IN THE HEALTHCARE INDUSTRY QUALMED INC AND HEALTH
NET A UNIT OF CLOSELY HELD HN MANAGEMENT HOLDINGS INC SAID THEY WOULD END
THEIR LONGRUNNING LEGAL BATTLE AND MERGE THEIR MANAGED CARE NETWORKS IN A
TRANSACTION WITH AN ESTIMATED VALUE OF 775 MILLION

INVESTORS REACTED FAVORABLY STOCK IN QUALMED OF PUEBLO COLO THE
SMALLER OF THE TWO CONCERNS ROSE 1375 OR 97 TO 1550 A SHARE IN
HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING

IN RECENT MONTHS A NUMBER OF HEALTHCARE PROVIDERS HAVE TURNED TO MERGERS
AND ACQUISITIONS TO CUT OVERHEAD COSTS AND EXPAND SERVICE NETWORKS TO GIRD
FOR CLINTON ADMINISTRATION REFORMS THAT ARE EXPECTED TO ORGANIZE HEALTHCARE
CONSUMERS INTO HUGE PURCHASING COOPERATIVES

AS IT STANDS HEALTH NET OF WOODLAND HILLS COLO WITH 1992 REVENUE OF
ABOUT 12 BILLION HAS A HEALTH MAINTENANCE ORGANIZATION WITH MORE THAN
928000 MEMBERS IN CALIFORNIA MAKING IT THE SECOND LARGEST HMO PROVIDER IN
THE STATE THE NATION'S LARGEST HMO MARKET IN TERMS OF THE NUMBER OF PEOPLE
COVERED BY HMO CARE

ALTHOUGH THE NEW ENTITY WHICH HAS NOT BEEN NAMED WILL STILL BE FAR SMALLER
THAN KAISER PERMANENTE OF OAKLAND CALIF WHOSE CALIFORNIA HMO NETWORK HAS
ABOUT 46 MILLION MEMBERS IT WILL HAVE AN ESTIMATED 12 MILLION HMO MEMBERS
SPREAD ACROSS CALIFORNIA AS WELL AS IN COLORADO WASHINGTON OREGON NEW
MEXICO AND IDAHO WHERE QUALMED HAS HMO NETWORKS MOREOVER THE NEW ENTITY
WILL ALSO INCLUDE QUALMED'S PREFERRED PROVIDER NETWORK WHICH HAS ABOUT 24
MILLION MEMBERS SPREAD ACROSS 16 STATES

BY ALLOWING THE COMBINED ENTITY TO OFFER A VARIETY OF HEALTHCARE SERVICES
TO EMPLOYERS WITH OPERATIONS THAT CROSS STATE LINES THE MERGER VAULTS
QUALMED INTO THE BIG TIME AND HELPS HEALTH NET GET OUT OF CALIFORNIA
SAID ROBERT M PETERSON AN INDUSTRY ANALYST WITH HANIFEN IMHOFF I THINK
IT MAKES A WHOLE LOT OF SENSE

INDUSTRY ANALYSTS SAID THE MERGER WOULD ALSO COMBINE QUALMED'S MEDICAL
MANAGEMENT EXPERTISE WITH HEALTH NET'S MARKETING SKILLS MOREOVER BECOMING
PART OF A PUBLICLY TRADED ENTITY WILL ALSO END CLOSELY HELD HEALTH NET'S
PROBLEMS RAISING CAPITAL FOR EXPANSION BOTH PLAYERS GET SOMETHING OUT OF
IT SAID TODD RICHTER AN INDUSTRY ANALYST WITH DEAN WITTER I THINK IT'S
AN OUTSTANDING MERGER

UNDER TERMS OF THE PROPOSAL THE NEW COMPANY WILL TEMPORARILY MAINTAIN
OFFICES IN BOTH WOODLAND HILLS CALIF AND PUEBLO COLO AND FOR A
THREEYEAR PERIOD THE POSTS OF CHAIRMAN CHIEF EXECUTIVE OFFICER AND
PRESIDENT WILL BE DIVIDED BETWEEN ROGER F GREAVES 55 YEARS OLD WHO HOLDS
THOSE JOBS AT HEALTH NET AND MALIK HASAN THE 54YEAROLD PHYSICIAN WHO
HOLDS THOSE TITLES AT QUALMED

ALSO UNDER THE MERGER AGREEMENT WHICH REMAINS SUBJECT TO APPROVAL BY
SHAREHOLDERS AND CERTAIN REGULATORY AGENCIES EACH SHARE OF HEALTH NET
COMMON STOCK WILL BE CONVERTED INTO 334 SHARES OF THE NEW ENTITY AND EACH
OF QUALMED'S 172 MILLION COMMON SHARES WILL BE CONVERTED INTO ONE SHARE OF
THE NEW ENTITY WHICH WILL HAVE ABOUT 50 MILLION COMMON SHARES OUTSTANDING
AFTER THE MERGER FORMER QUALMED SHAREHOLDERS WILL OWN ABOUT A 35 STAKE
AND FORMER HEALTH NET SHAREHOLDERS WILL OWN ABOUT A 65 STAKE IN THE NEW
ENTITY HOWEVER ALL BUT ABOUT 13 OF THE HEALTH NET STAKE WILL CONSIST OF
NONVOTING SHARES HELD BY THE LOS ANGELESBASED CALIFORNIA WELLNESS
FOUNDATION A PRIVATE NONPROFIT AGENCY THAT HOLDS A MAJORITY STAKE IN HEALTH
NET

MOREOVER BY AGREEMENT 12 OF THE NEW ENTITY'S 17 BOARD MEMBERS WILL EITHER
BE CURRENT EXECUTIVES OR BOARD MEMBERS OF QUALMED WHICH HAS WAGED A
LONGRUNNING BATTLE FOR CONTROL OF HEALTH NET

IN AUGUST 1992 QUALMED FILED A LAWSUIT IN A CALIFORNIA STATE COURT IN LOS
ANGELES ACCUSING THE CALIFORNIA WELLNESS FOUNDATION OF BREACHING AN ALLEGED
CONTRACT TO BUY HEALTH NET THE SUIT WHICH ALSO NAMED HN MANAGEMENT AND
HEALTH NET AS DEFENDANTS SOUGHT MORE THAN 440 MILLION IN DAMAGES IN 1991
QUALMED ALSO FILED A SUIT IN A STATE COURT IN SACRAMENTO CALIF
CHALLENGING HEALTH NET'S CONVERSION TO A FORPROFIT OPERATION HEALTH NET
COUNTERSUED ALLEGING UNFAIR COMPETITION CONSPIRACY AND ABUSE OF PROCESS

WHETHER YOU ACHIEVE THE RESULTS IN COURT OR OUTSIDE THE COURT OUR PURPOSE
WAS TO BRING THE TWO COMPANIES TOGETHER SAID DR HASAN WHO CALLED THE
PROPOSED MERGER AGREEMENT VERY FAVORABLE TO QUALMED SHAREHOLDERS WE
TRULY WANT TO RUN IT AS A PARTNERSHIP HE ADDED

DR HASAN SAID HE DIDN'T ANTICIPATE ANY MAJOR REDUCTIONS IN EMPLOYEES AT THE
NEW ENTITY WHICH WILL HAVE A COMBINED WORK FORCE OF ABOUT 2200 IN PART
BECAUSE THE MERGED COMPANY WILL BE SEEKING TO EXPAND AND OFFER NEW PRODUCTS

FOR THE SECOND QUARTER ENDED JUNE 30 QUALMED REPORTED NET INCOME OF 24
MILLION OR 14 CENTS A SHARE ON REVENUE OF 1373 MILLION AFTER A 23
MILLION CHARGE IN THE YEAREARLIER PERIOD THE COMPANY HAD NET OF 37
MILLION OR 21 CENTS A SHARE ON REVENUE OF 1063 MILLION 9308310128
930831 MARKETING & MEDIA ADVERTISING SCALI INSISTS THAT MERCEDES ADS 
CAN'T RUN WITH CERTAIN ARTICLES  BY KEVIN GOLDMAN

MERCEDESBENZ OF NORTH AMERICA WHICH TOLD DRIVERS TO SACRIFICE NOTHING
IS NOW ASKING MAGAZINE PUBLISHERS TO SACRIFICE SOME FLEXIBILITY

WPP GROUP'S SCALI MCCABE SLOVES THE AD AGENCY FOR THE 65 MILLION
MERCEDESBENZ ACCOUNT LAST WEEK SENT LETTERS TO PUBLICATIONS INSISTING THAT
ADS FOR THE GERMAN AUTO MAKER CAN RUN ONLY IN A PROPER EDITORIAL ENVIRONMENT
 ONE FREE OF ANY STORIES DEEMED ANTIGERMANY

ANY ISSUE CONTAINING EDITORIAL DENIGRATING TO MERCEDESBENZ  OR
CONTAINING MATERIAL THAT MAY LEAD TO A NEGATIVE BIAS TOWARD GERMAN PRODUCTS
SHOULD NOT CARRY A MERCEDESBENZ ADVERTISEMENT THE LETTER READ

SCALI WROTE THAT FAILURE TO COMPLY  WILL RESULT IN EITHER NONPAYMENT
OR A SUBSEQUENT FREE ADVERTISEMENT FOR THE AUTO MAKER THE AGENCY ALSO ASKED
PUBLISHERS TO SIGN THE LETTER AND RETURN THE COPY  TO INDICATE
AGREEMENT

COOPERATION BETWEEN THE EDITORIAL AND BUSINESS SIDES OF A MAGAZINE ISN'T
UNHEARD OF IF FOR EXAMPLE A MAGAZINE IS GOING TO HAMMER THE TOBACCO
INDUSTRY ONE MONTH THE PUBLICATION MAY ROUTINELY CONTACT GIANT CIGARETTE
MANUFACTURERS PHILIP MORRIS AND RJR NABISCO HOLDINGS TO OFFER THEM THE
OPTION OF PULLING THEIR ADS UNTIL A LESS CONTROVERSIAL ISSUE IS PUBLISHED
NEWSPAPERS AND TELEVISION AND RADIO STATIONS ROUTINELY PULL AIRLINE
ADVERTISEMENTS IMMEDIATELY FOLLOWING A PLANE CRASH IT'S GOOD POLITE
BUSINESS SAYS THOMAS A FLORIO PUBLISHER OF CONDE NAST TRAVELER

BUT SCALI'S REQUEST FROM MERCEDES A UNIT OF DAIMLERBENZ AG IS FAR MORE
SWEEPING AND AT THE SAME TIME MORE AMBIGUOUS MERCEDES ISN'T INTERESTED
IN BEING NOTIFIED ONLY WHEN THERE ARE NEGATIVE OR INVESTIGATIVE STORIES
ABOUT AUTOMOBILE SAFETY OR PERFORMANCE MERCEDES A SPOKESMAN AT THE AUTO
MAKER'S US BASE IN MONTVALE NJ SAYS WANTS TO BE INFORMED OF ANY
ARTICLE ABOUT GERMANY BEFORE MAKING A DECISION WHETHER ITS ADS CAN
REMAIN

WE ARE IN A UNIQUE POSITION OF SYMBOLIZING AN ENTIRE NATION SAYS THE
SPOKESMAN WE ARE SEEN AS THE MOST VISIBLE GERMAN PRODUCT

THE SPOKESMAN SAYS FOR EXAMPLE THAT MERCEDESBENZ HAS RECEIVED CALLS AFTER
NEWS REPORTS ON THE NEONAZI MOVEMENT AND VIOLENCE SURROUNDING SKINHEADS
CALLERS WANT US TO ACCOUNT WHY THE GERMAN GOVERNMENT WOULD ALLOW THESE
THINGS TO HAPPEN SAYS THE SPOKESMAN

YET OTHER GERMAN AUTOMOBILE MANUFACTURERS INCLUDING VOLKSWAGEN OF AMERICA
ITS SUBSIDIARY AUDI OF AMERICA AND BMW OF NORTH AMERICA A SUBSIDIARY OF
BAYERISCHE MOTOREN WERKE SAY THEY DON'T HAVE SIMILAR POLICIES WE WOULD
HOPE MAGAZINES WOULD BE SAVVY ENOUGH TO KNOW WHAT ISSUES WE WOULDN'T WANT TO
ADVERTISE IN SAYS A VOLKSWAGEN SPOKESMAN BUT WE DON'T ASK PUBLICATIONS
FOR A SIMILAR AGREEMENT

THE MERCEDESBENZ LETTER SETS A DANGEROUS PRECEDENT SAYS JAMES GRUTHRIE
AN EXECUTIVE VICE PRESIDENT OF MARKETING DEVELOPMENT AT THE MAGAZINE
PUBLISHERS OF AMERICA CONTENTS OF THE LETTER WERE FIRST DISCLOSED IN
YESTERDAY'S FOLIO FIRST DAY NEWSLETTER AND CONFIRMED BY MERCEDES AND
SCALI

I'M NOT SURE WHAT IS AT THE BOTTOM OF THIS SAYS MR GRUTHRIE

MR GRUTHRIE SAYS THAT FOR YEARS COMPANIES SPECIFIED THE DESIRED
PLACEMENTS FOR THEIR ADS BUT THIS IS TAKING IT TO A NEW EXTREME HE ADDS
I'VE HEARD OF NOTHING LIKE THIS EVER BEFORE

ASKING PUBLISHERS TO SIGN AGREEMENTS THAT SAY MERCEDESBENZ DOESN'T HAVE TO
PAY IF ADS AREN'T PULLED COULD DAMAGE THE AUTO MAKER'S IMAGE IT MAY BE SEEN
AS PASSING ALONG A VEILED THREAT IF YOU CHOOSE TO ADVERTISE IN A FREE
PRESS YOU TAKE CHANCES SAYS CLIVE CHAJET CHAIRMAN AND CHIEF EXECUTIVE
OFFICER AT LIPPINCOTT & MARGULIES A NEW YORK CORPORATE AND BRANDIDENTITY
CONSULTANT I'VE NEVER HEARD OF SUCH A BLATANT DEMAND BEFORE SAYS MR
CHAJET IT VIOLATES EVERY RULE SEPARATING CHURCH AND STATE

ALAN JERMAIN EXECUTIVE VICE PRESIDENT AND DIRECTOR OF MEDIA AT SCALI
COUNTERS THAT THE LETTER IS ROUTINE  AND WE SEND OUT OTHER LETTERS FOR
OTHER CLIENTS AS WELL HE DECLINES TO BE SPECIFIC

FINANCIAL WORLD FOR ONE REFUSES TO SIGN I WOULDN'T SIGN ANYTHING WITH
ANYBODY THAT SAYS WE HAVE TO SOMEHOW DIVULGE WHAT IS COMING UP IN ONE OF OUR
ISSUES SAYS DOUGLAS MCINTYRE PRESIDENT OF THE NEW YORKBASED PUBLICATION
THE SALESMEN HERE DON'T KNOW WHAT'S COMING UP IN THE MAGAZINE

REPRESENTATIVES FOR TIME NEWSWEEK US NEWS & WORLD REPORT AND THE NEW
YORKER DECLINED COMMENT BUT JACK GRANT THE ASSOCIATE PUBLISHER OF HARPER'S
MAGAZINE SAYS HE MIGHT SIGN THE LETTER AS A POLICY HE SAYS WE WARN
ADVERTISERS

THE LETTER SUGGESTS A FAILSAFE SYSTEM WHICH ASKS THAT MAKEUP AND
PRODUCTION PEOPLE BE INFORMED OF THE POLICY AND BE GIVEN AUTHORIZATION TO
PULL ANY MERCEDESBENZ ADS AT THE ELEVENTHHOUR IN THE EVENT OF
INAPPROPRIATE EDITORIAL

FOR ITS PART MERCEDESBENZ SAYS IT DOESN'T UNDERSTAND WHAT ALL THE FUSS IS
ABOUT

WE DON'T THINK THERE WILL BE ANY RELUCTANCE TO SIGN THIS LETTER SAYS THE
AUTOMOBILE SPOKESMAN THE MAGAZINES DON'T HAVE TO DO ANYTHING EXCEPT NOT
RUN OUR ADS

PITCH HJ HEINZ IS SCOUTING OUT A NEW AGENCY TO CREATE ADVERTISING FOR
CERTAIN UNIDENTIFIED FROZENFOOD BRANDS THE MYSTERY ASSIGNMENT HAS
ESTIMATED BILLINGS OF 5 MILLION TO 7 MILLION BUT COULD EVENTUALLY BE
WORTH AS MUCH AS 40 MILLION SAID ALAN L KRINSKY A NEW YORK CONSULTANT
COORDINATING THE PITCH ADWEEK MAGAZINE SAID THE NEW ACCOUNTS PROBABLY
INCLUDE THE MOORE'S BREADED VEGETABLE AND CHEESE AND DOMANI PASTA BRANDS
WHICH HEINZ BOUGHT FROM CLOROX CO IN JULY EXECUTIVES CLOSE TO THE PITCH
SAID OTHER BRANDS MIGHT BE INVOLVED A HEINZ SPOKESWOMAN DECLINED TO
COMMENT A DECISION IS EXPECTED IN OCTOBER

MILESTONE LEO BURNETT CHICAGO MADE STUNTWOMAN DIANE PETERSON THE SUBJECT
OF THE 100TH PROFILE IN THE 24YEAROLD PRINT CAMPAIGN FOR DEWAR'S SCOTCH
THE AD BREAKS IN THE SEPTEMBER ISSUE OF SUCH MAGAZINES AS TIME SPORTS
ILLUSTRATED AND BUSINESS WEEK SCHIEFFELIN & SOMERSET A JOINT VENTURE OF
GUINNESS AND LVMH MOET HENNESSY LOUIS VUITTON MARKETS DEWAR'S 9308310127
930831 WHO'S NEWS BUILDERS TRANSPORT INC

BUILDERS TRANSPORT INC CAMDEN SC STANFORD M DINSTEIN WAS NAMED
CHIEF EXECUTIVE OFFICER OF THIS TRUCKLOAD CARRIER COMPANY THE POSITION HAD
PREVIOUSLY BEEN FILLED BY THE COMPANY'S EXECUTIVE COMMITTEE PREVIOUSLY MR
DINSTEIN HAD BEEN CHIEF ADMINISTRATIVE OFFICER HE RETAINS THE TITLE OF VICE
CHAIRMAN 9308310126 930831 US ECONOMY'S PROSPECTS WEAKEN FED SURVEY
FINDS

WASHINGTON PROSPECTS FOR THE US ECONOMY FOR THE REST OF THIS YEAR AND
INTO NEXT ARE WEAKER NOW THAN THEY WERE JUST THREE MONTHS AGO ACCORDING TO
THE LATEST SURVEY OF 35 FORECASTERS BY THE FEDERAL RESERVE BANK OF
PHILADELPHIA

THE PRIVATE FORECASTERS WHO HAD PREDICTED IN MAY THAT THE ECONOMY WOULD
GROW 3 IN 1993 AND 1994 NOW EXPECT IT TO GROW BY 24 THIS YEAR AND 28
NEXT NEVERTHELESS THEY STILL BELIEVE THAT THE UNEMPLOYMENT RATE WILL INCH
DOWN GRADUALLY AVERAGING 69 THIS YEAR AND 66 IN 1994

IN PART THE NEW FORECASTS REFLECT WEAKERTHANEXPECTED GROWTH IN THE FIRST
HALF OF 1993 THE FORECASTERS EXPECT THE ECONOMY TO EXPAND AT A 31 ANNUAL
RATE IN THE THIRD QUARTER AND AT A 32 ANNUAL RATE IN THE FOURTH ONLY
SLIGHTLY LESS THAN THEY PREDICTED THREE MONTHS AGO BUT THEY NOW EXPECT THE
ECONOMY TO GROW AT A 27 RATE IN THE FIRST QUARTER OF 1994 DOWN FROM THEIR
EARLIER 31 FORECAST

THE FORECASTERS ARE INCREASINGLY OPTIMISTIC ABOUT INFLATION HOWEVER
PREDICTING THAT CONSUMER PRICES WILL CLIMB 31 IN 1993 AND 32 IN 1994 IN
MAY THEY PREDICTED PRICES WOULD CLIMB BY 34 IN EACH OF THE TWO YEARS THE
MEDIAN FORECAST HAS THE CONSUMER PRICE INDEX CLIMBING AT AN AVERAGE ANNUAL
RATE OF 345 DURING THE NEXT DECADE DOWN FROM A 37 FORECAST MADE THREE
MONTHS AGO 9308310125 930831 MCI'S NEW BUSINESS SERVICE

WASHINGTON MCI COMMUNICATIONS CORP SAID IT WILL OFFER A NEW SERVICE
ENABLING BUSINESSES WITH OPERATIONS IN THE US AND CANADA TO USE A SINGLE
TOLLFREE 800 NUMBER IN BOTH COUNTRIES

THE ADVANTAGE 800 SERVICE OFFERED BY MCI AND THE STENTOR ALLIANCE OF
CANADIAN PHONE COMPANIES WILL BE AVAILABLE BY YEAR END 9308310124 930831
MUNI BOARD TO USE AN EXISTING RULE IN ITS CRACKDOWN  BY CHRISTI
HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID IT WILL USE AN
EXISTING REGULATION TO CRACK DOWN IMMEDIATELY ON IMPROPER CONTRIBUTIONS
FLOWING FROM BOND DEALERS TO POLITICAL OFFICIALS WHO AWARD BOND BUSINESS

THE EXISTING RULE WHICH BARS ANY DECEPTIVE DISHONEST OR UNFAIR PRACTICE
BY BOND DEALERS WILL BE USED DURING THE MONTHS BEFORE THE BOARD CAN PUT A
RULE ON ITS BOOKS SPECIFICALLY LIMITING POLITICAL CONTRIBUTIONS

THE MSRB FORMALLY PROPOSED THE SPECIFIC RULE YESTERDAY THE RULE OUTLINED
EARLIER THIS MONTH WOULD PROHIBIT A BOND DEALER FROM MAKING POLITICAL
CONTRIBUTIONS WITH THE INTENT OF SWAYING PUBLIC OFFICIALS TO STEER THE BOND
BUSINESS TO THE DEALER IF AWARDED THE UNDERWRITING BUSINESS THE DEALER
WOULD HAVE TO DISCLOSE ALL CAMPAIGN CONTRIBUTIONS MADE TO RELEVANT OFFICIALS
IN THE TWO YEARS BEFORE AND AFTER THE AWARD

COMMENTS ON THE RULE WILL BE COLLECTED THROUGH SEPT 30 ADJUSTMENTS
STEMMING FROM THE COMMENTS WOULD BE MADE AT A BOARD MEETING IN EARLY
NOVEMBER THE PROPOSAL WOULD THEN BE SUBMITTED TO THE SECURITIES AND
EXCHANGE COMMISSION WHICH WILL COLLECT COMMENTS OF ITS OWN BEFORE APPROVING
A FINAL RULE

DESPITE THE TIME SPAN THE MSRB WANTS DEALERS TO KNOW THERE IS NOT A WINDOW
OF OPPORTUNITY THERE AND WILL USE EXISTING RULES SAID THE BOARD'S
EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR IF ANYBODY THINKS THEY'RE GOING TO
MAKE BIG POLITICAL CONTRIBUTIONS THIS FALL WE WILL GET THEM

THE PROPOSED RULE IS EXPECTED TO GET A STRENUOUS AIRING NEXT WEEK BEFORE THE
HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE THE SUBCOMMITTEE
HEADED BY REP EDWARD J MARKEY D MASS HAS ASKED THE LEAD AGENCIES
OVERSEEING THE MUNICIPALBOND MARKET THE SEC THE MSRB AND THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS TO ASSESS THE MUNI MARKET AND THE
PERFORMANCE OF ITS PARTICIPANTS 9308310123 930831 REDEMPTION NOTICES

THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE
REDEMPTION DURING THE WEEK ENDED AUGUST 27 1993 THE NOTICES ARE TAKEN FROM
ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT
MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE
DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER

CASSVILLE MO WILL REDEEM ON OCT 1 1993 195000 PRINCIPAL AMOUNT OF
ITS INDUSTRIAL REVENUE BONDS 1974 SERIES DUE OCT 1 1994 MERCANTILE BANK
ST LOUIS MO IS PAYING AGENT

ELDON MO WILL REDEEM ON OCT 1 1993 170000 PRINICPAL AMOUNT OF ITS
INDUSTRIAL REVENUE BONDS 1974 SERIES DUE OCT 1 1994 MERCANTILE BANK
ST LOUIS IS THE FISCAL AND PAYING AGENT

SANTA FE NM WILL REDEEM ON OCT 1 1993 ITS 6 3/4 REFUNDING REVENUE
BONDS SERIES 1978 DUE OCT 1 2001 HARRIS TRUST & SAVINGS BANK CHICAGO
IS TRUSTEE

SEDGWICK COUNTY KAN WILL REDEEM ON OCT 1 1993 1240000 PRINCIPAL
AMOUNT OF ITS SINGLE FAMILY MORTGATE REVENUE BONDS 1980 SERIES A DUE APRIL
1 199495 AND APRIL 1 2011 CONTINENTAL BANK CHICAGO IS TRUSTEE

TEXARKANA TEXAS HOSPITAL AUTHORITY WILL REDEEM ON OCT 1 1993 ITS
HOSPITAL REVENUE BONDS SERIES 1981 DUE OCT 1 1996 TEXARKANA NATIONAL
BANK TEXARKANA IS PAYING AGENT

YORK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON OCT 1 1993
ITS 630 POLLUTION CONTROL REVENUE BONDS 1976 SERIES A DUE OCT 1 2006
MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE 9308310122 930831
BUSINESS BRIEF ELI LILLY & CO BUYS MONSANTO DRUG UNIT EXPANDING TO
BELGIUM

INDIANAPOLIS ELI LILLY & CO CONTINUED ITS INTERNATIONAL EXPANSION DRIVE
WITH THE PURCHASE OF GD SEARLE & CO'S BELGIAN PHARMACEUTICAL RESEARCH AND
DEVELOPMENT PLANT

ANALYSTS SAID LILLY'S ACQUISITION OF THE 27ACRE FACILITY IN
MONTSAINTGUIBERT BELGIUM NEAR BRUSSELS SHOULD EXPEDITE ITS EFFORTS TO
OBTAIN NEWDRUG APPROVALS IN EUROPE THE COMPANIES DIDN'T DISCLOSE FINANCIAL
TERMS BUT A LILLY SPOKESMAN SAID IT PAID IN THE TENS OF MILLIONS OF
DOLLARS

THE DRUG MAKER HISTORICALLY HAS BEEN SLOW TO MOVE INTO OVERSEAS MARKETS
WITH ABOUT ONETHIRD OF ITS SALES COMING FROM OUTSIDE THE US SOME OTHER
US DRUG MAKERS BY CONTRAST HAVE ACHIEVED OVERSEAS SALES ROUGHLY
EQUIVALENT TO DOMESTIC ONES BUT WITHIN THE PAST FEW YEARS LILLY BEGAN TO
STRESS INTERNATIONAL EFFORTS IT CURRENTLY HAS RESEARCH FACILITIES IN
ENGLAND CANADA GERMANY AND JAPAN

AT MONSANTO CO'S SEARLE UNIT THE SALE REPRESENTS FURTHER RETRENCHMENT
FOLLOWING QUARTERLY LOSSES SEARLE LAST NOVEMBER ANNOUNCED LAYOFFS OF 2250
EMPLOYEES MORE THAN ONEFIFTH OF ITS WORK FORCE THE COMPANY ALSO IN
DECEMBER SOLD THREE PRESCRIPTIONDRUG PRODUCT LINES FOR 35 MILLION

SEARLE IS CUTTING COSTS DRAMATICALLY SAID HEALTHCARE ANALYST D LARRY
SMITH OF HAMBRECHT & QUIST SELLING A FACILITY OF THIS SIZE DOESN'T AUGUR
WELL FOR THEM

LILLY SAID IT EXPECTS TO RETAIN MOST OF THE 192 SEARLE EMPLOYEES AT THE
BELGIAN PLANT IN PART TO TEST SEVERAL OF THE EIGHT TO 10 DRUG COMPOUNDS
LILLY EXPECTS TO HAVE IN ADVANCED CLINICAL TRIALS BY THE END OF NEXT YEAR
9308310121 930831 PEPPERAND SALT

WAS WORTH BENDING DOWN TO RECEIVE

IF YOUR GROWN CHILD IS BACK LIVING WITH YOU AGAIN YOU CAN BET HE DECIDED
THAT LIVING IN THE FAST LANE WAS MORE OF A CHALLENGE THAN LIFE IN THE FREE
SPACE 9308310120 930831 WHO'S NEWS TORONTODOMINION BANK

TORONTODOMINION BANK TORONTO MICHAEL MUELLER 34 YEARS OLD WAS
APPOINTED SENIOR VICE PRESIDENT IN CHARGE OF US OPERATIONS SUCCEEDING
STEPHEN MCDONALD 37 WHO BECAME EXECUTIVE VICE PRESIDENT OF THE CORPORATE
AND INVESTMENT BANKING GROUP MR MCDONALD SUCCEEDED L ARTHUR ENGLISH 49
WHO MOVED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT
FINANCIAL SERVICES DIVISION 9308310119 930831 ADAC LABORATORIES IS SUED

MILPITAS CALIF ADAC LABORATORIES INC A MAKER OF MEDICAL IMAGING AND
INFORMATION PRODUCTS SAID A LAWSUIT ALLEGING PATENT INFRINGEMENT WAS FILED
AGAINST THE COMPANY IN FEDERAL COURT IN MARYLAND BY ELSCINT LTD OF HAIFA
ISRAEL

ADAC WHICH IS REVIEWING THE COMPLAINT SAID IT BELIEVES IT HAS MERITORIOUS
DEFENSES AND WILL VIGOROUSLY DEFEND ITS POSITION 9308310118 930831
COASTAL CORP UNIT'S SHARES

HOUSTON ANR PIPELINE CO A UNIT OF COASTAL CORP WILL REDEEM 200000
SHARES OF ITS 2675 PREFERRED STOCK UNDER SINKINGFUND PROVISIONS ON SEPT
30 THE COMPANY SAID IT WILL PAY 25 A SHARE PLUS ACCRUED DIVIDENDS OF 225
CENTS A SHARE THERE ARE 400000 SHARES OF THE SERIES OUTSTANDING
9308310117 930831 MONDAY'S MARKETS BONDS PUSH STILL HIGHER STOCKS
RISE  LONGBOND YIELD DIPS TO 611 FROM 614 RECORD STOCK
INDEXES  BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET
JOURNAL

BOND PRICES PUSHED HIGHER FUELED BY MORE DOWNBEAT ECONOMIC NEWS STOCKS
POSTED MODEST GAINS ALTHOUGH SEVERAL INDEXES SET RECORDS THE DOLLAR EDGED
HIGHER

AFTER MOVING BRIEFLY ABOVE ITS ALLTIME HIGH OF 365209 THE DOW JONES
INDUSTRIAL AVERAGE RETRACED MOST OF THOSE GAINS ENDING THE DAY UP 336
POINTS TO 364399 STANDARD & POOR'S 500STOCK INDEX ADDED 136 TO A RECORD
46190 AND THE NASDAQ COMPOSITE INDEX JUMPED 331 TO 73738 ALSO CLOSING
AT A NEW HIGH THE DOW JONES UTILITY AVERAGE WHICH TENDS TO MOVE HIGHER AS
INTEREST RATES FALL GAINED 112 TO CLOSE AT A RECORD 25521

THE STOCK GAINS CAME AS THE BOND MARKET RESUMED ITS AMAZING RALLY THE YIELD
ON THE TREASURY'S 30YEAR BOND FELL TO 611 FROM 614 FRIDAY

BOND INVESTORS TOOK ENCOURAGEMENT FROM A COMMERCE DEPARTMENT REPORT THAT
SHOWED SALES OF NEW SINGLEFAMILY HOUSES FELL A SHARPERTHANEXPECTED 5 IN
JULY IF THAT WASN'T BAD ENOUGH THE GOVERNMENT REVISED DOWNWARD THE JUNE
RISE IN NEW SINGLEFAMILY HOMES TO 33 FROM 11

I THINK THE ECONOMY HAS GOTTEN OFF TO A VERY POOR START IN THE THIRD
QUARTER SAID LACY HUNT CHIEF ECONOMIST OF HSBC HOLDINGS THE PARENT OF
MARINE MIDLAND BANK SOME OF THE SECTORS OF THE ECONOMY WHICH ARE SUPPOSED
TO BE DOING WELL LIKE THE INTEREST RATE SENSITIVEAREAS SUCH AS HOUSING
ARE NOT

MR HUNT SAID THERE ARE SIGNS THAT THE AUTO SECTOR WHICH HAS BEEN A PILLAR
OF STRENGTH IN THIS FITFUL ECONOMIC RECOVERY IS FLAGGING IN ITS LATEST
EDITION WARD'S AUTOMOTIVE REPORTS AN INDUSTRY NEWSLETTER SHARPLY REDUCED
ITS ESTIMATES OF THIRD QUARTER US CAR AND TRUCK PRODUCTION RISING AUTO
OUTPUT TENDS TO SUPPORT OTHER INDUSTRIES SUCH AS STEEL AND RUBBER

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX GAINED 023 TO 11275

IN MAJOR MARKET ACTION

STOCK PRICES ROSE VOLUME TOTALED 1913 MILLION SHARES ON THE NEW YORK STOCK
EXCHANGE WHERE 1120 ADVANCED AND 780 DECLINED

BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE
THREEEIGHTHS OF A POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD
611

THE DOLLAR ROSE SLIGHTLY IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED
AT 16724 MARKS AND 10380 YEN COMPARED WITH 16644 MARKS AND 10375 YEN
FRIDAY 9308310116 930831 INTERNATIONAL RUSSIA AGREES TO REMOVE LAST
TROOPS FROM LITHUANIA BREAKING A DEADLOCK  BY ADI IGNATIUS 
STAFF REPORTER OF THE WALL STREET JOURNAL

MOSCOW RUSSIA AND LITHUANIA REACHED A NEW AGREEMENT ON REMOVING THE
REMAINING RUSSIAN TROOPS FROM THE BALTIC COUNTRY BREAKING A DEADLOCK THAT
COULD HAVE PROMPTED THE US TO CUT OFF CERTAIN AID

THE SOLDIERS HAD REMAINED EVEN THOUGH LITHUANIA HAD GAINED ITS INDEPENDENCE
FROM MOSCOW A FEW MONTHS BEFORE THE BREAKUP OF THE SOVIET UNION IN LATE
1991

LEADERS OF THE TWO NATIONS AGREED IN A TELEPHONE CONVERSATION ON A NEW
FRAMEWORK FOR THE PROMPT WITHDRAWAL OF THE 2500 RUSSIAN SOLDIERS STILL IN
LITHUANIA RUSSIAN AND LITHUANIAN OFFICIALS SAID YESTERDAY LITHUANIAN
PRESIDENT ALGIRDAS BRAZAUSKAS SAID ON NATIONAL RADIO THAT MOSCOW WOULD
WITHDRAW ITS LAST TROOPS BY TODAY RUSSIA'S OFFICIAL ITARTASS NEWS AGENCY
REPORTED

WE FOUND AN ACCEPTABLE COMPROMISE HE WAS QUOTED AS SAYING

IF MOSCOW FOLLOWS UP ON ITS PROMISE IT WILL AVERT A CLASH WITH THE US
GOVERNMENT WHICH WOULD HAVE BEEN REQUIRED BY LAW TO CUT OFF 700 MILLION IN
TECHNICAL AID IF RUSSIA HADN'T COMPLETED THE WITHDRAWAL BY OCT 6 IF THE
WITHDRAWAL IS COMPLETED TODAY MOSCOW WILL HAVE MET ITS EARLIER PLEDGE TO
CONCLUDE THE PROCESS BY AUG 31

WASHINGTON APPARENTLY OVERREACTED TO REPORTS A WEEK AGO THAT RUSSIA WAS
SUSPENDING THE TROOP WITHDRAWAL IN PROTEST OF LITHUANIA'S CLAIMS FOR MORE
THAN 100 BILLION IN DAMAGES FOR 50 YEARS OF SOVIET OCCUPATION MOSCOW HAS
FREQUENTLY ADOPTED SUCH THEATRICS DURING NEGOTIATIONS ONLY TO CONTINUE THE
WITHDRAWAL PROCESS ROUGHLY AS SCHEDULED MOSCOW HAD PULLED OUT MORE THAN 90
OF THE FORMER SOVIET TROOPS IN LITHUANIA LEAVING JUST THE 2500 NOW BEING
WITHDRAWN

AT THE LITHUANIAN EMBASSY IN MOSCOW PRESS ATTACHE GINTARAS YATKUNIS SAID
THE PULLOUT HAS ALREADY BEGUN OF THE REMAINING RUSSIAN TROOPS HE SAID
THAT WHILE THE WITHDRAWAL IS LIKELY TO BE COMPLETED TODAY THE FAMILIES OF
SOME OFFICERS WILL REMAIN IN LITHUANIA UNTIL TRANSPORTATION BACK TO RUSSIA
CAN BE ARRANGED

ITARTASS SAID THE RUSSIAN AND LITHUANIAN LEADERS ALSO AGREED TO HOLD A
BILATERAL SUMMIT SOON THEY ALSO AGREED TO A DRAFT DECLARATION STRESSING
THAT THE QUESTION OF TROOP WITHDRAWAL AND COMPENSATION SHOULDN'T NEGATIVELY
AFFECT THE GENERAL CLIMATE OF BILATERAL RELATIONS

LITHUANIA'S DEMANDS FOR COMPENSATION FROM MOSCOW WILL BE TAKEN UP AT A LATER
DATE ITARTASS SAID QUOTING UNIDENTIFIED RUSSIAN FOREIGN MINISTRY SOURCES
RUSSIA FOR ITS PART HAS CONTENDED THAT IT ISN'T RESPONSIBLE FOR SOVIET
MISDEEDS AND THAT IT TOO WAS A VICTIM OF THE SOVIET SYSTEM 9308310115
930831 DAY TRADERS TAKE A FAST AND COSTLY ROUTE  BY STANLEY W
ANGRIST SPECIAL TO THE WALL STREET JOURNAL

EVERY DAY IS NOT PAYDAY FOR MOST DAY TRADERS

DAY TRADERS ARE INVESTORS WHO OPEN AND CLOSE MARKET POSITIONS WITHIN THE
SAME TRADING DAY THEY HOPE THEIR MARKET INSIGHTS TRADING SKILLS AND SPEED
OF ACTION WILL ALLOW THEM TO TAKE SOME PROFITS HOME EACH DAY IN REALITY
MOST DAY TRADERS FIND THAT WHAT LOOKS EASY ON PAPER IS HARD TO DO IN THE
MARKET

CONSIDER JEFFREY NEEDLEMAN A WHOLESALE STAMP DEALER FROM ANN ARBOR MICH
WHO HAS BEEN INVESTING FOR 25 YEARS MOST OF THAT AS A DAY TRADER HE SAYS
THAT DURING THE PAST 10 YEARS HE HAS RUN A 10000 ACCOUNT INTO MORE THAN
100000 IN A FEW MONTHS SEVEN OR EIGHT TIMES BUT ALWAYS MANAGES TO
COLLAPSE IT BACK TO BELOW ITS STARTING VALUE IN A FEW WEEKS

WHEN YOU HAVE 30 OR 40 WINNING TRADES IN A ROW YOU BEGIN TO BELIEVE YOU ARE
ONTO SOMETHING AND SO YOU START TO OVERTRADE AND THE MARKET TAKES IT ALL
BACK EXPLAINS MR NEEDLEMAN

MOST MARKET PROFESSIONALS SHUN DAY TRADING ARGUING THAT THE COSTS OF
GETTING IN AND OUT OF TRADES THAT USUALLY PRODUCE ONLY SMALL PROFITS AND
SOME INEVITABLE LOSSES WILL EVENTUALLY DEPLETE THE EQUITY IN THE ACCOUNTS OF
ALL BUT THE MOST SKILLED

BUT TRADERS LIKE MR NEEDLEMAN DON'T MUCH CARE ABOUT EXPERT OPINION HE SAYS
HE IS NEITHER A HIGH LIVER NOR CONSUMED WITH A DESIRE TO HAVE GREAT WEALTH
WHAT HE LIKES HE SAYS ARE THE BIG VIDEO GAME ASPECTS OF DAY TRADING
WHEN BROKERAGE FIRMS ASK WHAT HIS GOALS ARE HIS STOCK RESPONSE IS THAT I
JUST WANT TO HAVE A WONDERFUL TIME LOSING MY EQUITY

OTHER INVESTORS EXPLAIN THEIR AFFECTION FOR DAY TRADING IN MORE EXPECTED
WAYS KENT TAYLOR AN AUSTIN TEXAS INVESTOR WHO TRADED STOCK OPTIONS
BEFORE HE BEGAN DAY TRADING FUTURES FULL TIME IN AUGUST 1992 SAYS I LIKE
TO GO TO SLEEP AT NIGHT AND NOT WORRY ABOUT THE MARKET GAPPING OPEN'
AGAINST ME AN OPENING GAP IS WHEN MARKET PRICES BEGIN THE DAY AT A
SUBSTANTIALLY HIGHER OR LOWER LEVEL THAN THE PREVIOUS DAY'S CLOSE

DAY TRADERS CAN PLAY IN ALL THE FINANCIAL MARKETS BUT MOST OF THEM DEAL IN
FUTURES CONTRACTS ESPECIALLY FINANCIAL FUTURES SUCH AS THE CONTRACTS BASED
ON THE STANDARD & POOR'S 500 STOCK INDEX OR ON CURRENCIES SUCH AS THE SWISS
FRANC

A FUTURES CONTRACT IS AN AGREEMENT TO BUY OR SELL SOMETHING IN THE FUTURE
SAY 62500 BRITISH POUNDS FOR EACH CONTRACT AT WHATEVER PRICE THEN PREVAILS
ON THE EXCHANGE INVESTORS WHO BELIEVE PRICES ARE GOING LOWER SELL FUTURES
CONTRACTS WHILE THOSE WHO BELIEVE PRICES ARE GOING TO RISE BUY FUTURES
CONTRACTS

TWO THINGS DETERMINE WHETHER AN INVESTMENT IS ATTRACTIVE TO DAY TRADERS ONE
IS LIQUIDITY OR THE VOLUME OF TRADING THE OTHER IS VOLATILITY OR THE SIZE
OF PRICE MOVES WHEN THE VOLUME OF TRADING IS HEAVY THE BIDASK SPREAD FOR
AN INVESTMENT IS SMALL MEANING DAY TRADERS CAN PROFIT ON SMALL PRICE MOVES
FOR EXAMPLE THE S&P 500 CONTRACT USUALLY TRADES WITH ONLY A 25 TO 50
DIFFERENCE BETWEEN WHAT SELLERS WILL ACCEPT THE BID PRICE AND WHAT
BUYERS WILL PAY THE ASK PRICE

THE SECOND REQUIREMENT VOLATILITY MEANS THE INVESTMENTS MUST MOVE ENOUGH
DURING THE DAY SO THAT TRADERS WILL BE ABLE TO OVERCOME THEIR COSTS AND
STILL BE LEFT WITH A PROFIT LINDA RASCHKE A FULLTIME TRADER AND A
SOMETIME DAY TRADER SAYS DAY TRADING ISN'T SOMETHING THAT CAN BE DONE EVERY
DAY YOU DO IT WHEN THE VOLATILITY IS THERE SHE SAYS

MORE THAN ANY OTHER INDIVIDUAL INVESTORS DAY TRADERS SEE THEIR ACTIVITY AS
A BUSINESS THEY BELIEVE THAT IF THEY DO THEIR HOMEWORK THEY WILL SPOT A
SIGNIFICANT MOVE IN THE MARKET BEFORE THE REST OF THE TRADING WORLD CAPTURE
A PART OF THAT MOVE AND THEN EXIT WITH A PROFIT

ANTHONY ECK 39 YEARS OLD WHO TRADES OUT OF HIS HOME IN AUSTIN SAYS THAT
GETTING OUT QUICKLY IS AN ABSOLUTE NECESSITY SO IS A STRICT CONTROL SYSTEM
THAT LIMITS BOTH PROFITS AND LOSSES TRADING MOSTLY CURRENCY CONTRACTS HE
WILL RISK NO MORE THAN 125 A CONTRACT HIS AVERAGE LOSS GENERALLY IS NO
MORE THAN 50 AND HIS AVERAGE PROFIT IS A MINUSCULE 62 PER CONTRACT WHILE
MANY TRADERS WOULD SCOFF AT SUCH NUMBERS MR ECK SAYS THAT 71 OF HIS
TRADES HAVE BEEN PROFITABLE SINCE HE STARTED TRADING ABOUT A YEAR AGO
MAKING HIS TRADING PROFITABLE OVERALL

TOM MEADOWS WHO HAS BEEN DAY TRADING FULL TIME ONLY SINCE MARCH HOPES HE
CAN MAKE A LIVING DOING IT BUT SO FAR HIS LOSSES EXCEED HIS PROFITS MR
MEADOWS 50 A FORMER SOFTWARE MANAGER IN AUSTIN SAYS DAY TRADING IS
APPEALING TO HIM BECAUSE I LIKE THE IDEA OF HAVING MY FINGER ON THE PULSE
OF THE AMERICAN ECONOMY

DAY TRADING REQUIRES CONSTANT ATTENTION IN ADDITION TO THE FREQUENTLY
CHANGING BIDASK SPREAD DAY TRADERS ALSO MUST COPE WITH THE TIME
DIFFERENTIAL REQUIRED FOR BROKERS TO FILL THEIR ORDERS IT'S A BUSINESS
WHERE SECONDS COUNT

MR TAYLOR WHO TRADES MOSTLY CURRENCY AND THE S&P STOCK FUTURES SAYS HE
PLACES HIS ORDERS BY PHONING CLERKS STATIONED IN BOOTHS ALONG THE PERIPHERY
OF THE TRADING PIT HE SAYS THE CLERKS CAN EXECUTE AN ORDER AND REPORT THE
PRICE TO HIM IN LESS THAN A MINUTE FROM THE TIME HE PICKS UP THE PHONE TO
PLACE HIS ORDER

ALTHOUGH ALL DAY TRADERS CLAIM THEY KISS THE LOSERS GOODBYE FAST THE
GENERAL LACK OF SUCCESS FOR MOST SUGGEST THEY MIGHT BE A BIT SLOW ON THE
EXIT DAVID MORSE WHO TRADES FROM HIS HOME IN ATLANTIC CITY NJ SAYS HE
HAS BEEN FAR MORE SUCCESSFUL AT THE BLACKJACK TABLES WHICH HE VISITS AFTER
THE MARKETS CLOSE THAN HE HAS BEEN IN DAY TRADING AFTER 10 YEARS OF
TRADING I WOULD GIVE A PINT OF BLOOD TO BE ABLE TO TRADE SUCCESSFULLY HE
LAMENTS

BROKERS LOVE DAY TRADERS BECAUSE THEY CAN GENERATE HUGE COMMISSIONS BUT FEW
BROKERS OPENLY ENCOURAGE CLIENTS TO DAY TRADE IF I SAW MORE SUCCESS
STORIES I MIGHT BE MORE WILLING TO ENCOURAGE PEOPLE TO TRY SAYS WILLIAM
MALLERS JR PRESIDENT OF FIRST AMERICAN DISCOUNT CORP A FUTURES BROKER IN
CHICAGO AN ACTIVE DAY TRADER CAN GENERATE AS MUCH AS 1000 A DAY IN
COMMISSIONS HE SAYS

ANTHONY ECK FREQUENTLY DAY TRADES THE BRITISH POUND HERE ARE TWO RECENT
TRADES THAT HE MADE

IN THE FIRST ONE HE INITIALLY BOUGHT TWO CONTRACTS THEN SOLD ONE OF THEM
FOR A PROFIT OF 11250 SHORTLY AFTER THAT THE MARKET REVERSED HE QUICKLY
SOLD THE SECOND ONE AT A PRICE THAT COVERED PART OF THE COMMISSION CHARGE

IN THE SECOND TRADE MR ECK TRAILED THE RISING POUND PRICE WITH AN ORDER TO
SELL AS SOON AS THE UPWARD TREND STALLED HE WAS OUT OF THE TRADE WITH A
PROFIT WITHIN AN HOUR AND 15 MINUTES 9308310114 930831 TECHNOLOGY 
GENZYME GETS PATENT ON SECOND TREATMENT FOR GAUCHER DISEASE

CAMBRIDGE MASS GENZYME CORP SAID IT RECEIVED A US PATENT PROTECTING
ITS METHOD OF MANUFACTURING A NEW DRUG DESIGNED TO TREAT GAUCHER DISEASE

THE HEALTHCARE PRODUCTS COMPANY SAID THE PATENT COVERS ITS METHOD OF MAKING
RECOMBINANT HUMAN GLUCOCEREBROSIDASE OR RGCR FROM MAMMALIAN CELLS

THE RGCR DRUG AS YET UNAPPROVED BY THE FOOD AND DRUG ADMINISTRATION IS
GENZYME'S SECOND PRODUCT FOR GAUCHER DISEASE GENZYME SAID IT IS BEING
DEVELOPED BECAUSE OF FUTURE SUPPLY CONSTRAINTS ON GENZYME'S FIRST GAUCHER
DRUG CEREDASE CEREDASE IS DERIVED FROM THE PLACENTAL TISSUE OF FULLTERM
HUMAN BIRTHS WHICH IS IN LIMITED SUPPLY BECAUSE ONLY ONE COMPANY SELLS IT
GENZYME SAID

CEREDASE THE ONLY DRUG APPROVED FOR TREATING GAUCHER DISEASE HAS BEEN THE
SUBJECT OF CONTROVERSY SINCE A CONGRESSIONAL REPORT LAST YEAR SAID THE DRUG
CAN COST A PATIENT UP TO 300000 ANNUALLY GENZYME DISPUTES THE REPORT'S
CLAIMS SAYING THE AVERAGE ANNUAL PRICE FOR PATIENTS IS CURRENTLY 140000

A GENZYME SPOKESWOMAN SAID THE COMPANY HASN'T DETERMINED THE PRICE OF THE
NEW DRUG RGCR BUT SHE ADDED RGCR PROBABLY WON'T BE PRICED
SUBSTANTIALLY LESS THAN CEREDASE GENZYME SAID IT EXPECTS TO RECEIVE FDA
MARKETING APPROVAL FOR RGCR IN 1994

GAUCHER DISEASE IS AN INCURABLE GENETIC DISORDER AFFECTING ABOUT 2000 TO
3000 PEOPLE IN THE US THE DISORDER RESULTS IN THE BUILDUP OF FAT IN
CERTAIN ORGANS BECAUSE PEOPLE WHO ARE AFFLICTED LACK GLUCOCEREBROSIDASE AN
ENZYME CAPABLE OF BREAKING DOWN FATTY SUBSTANCES 9308310113 930831
RAWSTEEL OUTPUT FELL 06 IN LATEST WEEK

WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 06 LAST
WEEK TO 1856000 TONS FROM 1867000 TONS THE PREVIOUS WEEK THE AMERICAN
IRON AND STEEL INSTITUTE SAID

LAST WEEK'S OUTPUT ROSE 133 FROM THE 1638000 TONS PRODUCED A YEAR
EARLIER

THE INDUSTRY USED 885 OF ITS CAPABILITY LAST WEEK COMPARED WITH 89 THE
PREVIOUS WEEK AND 758 A YEAR EARLIER

THE AMERICAN IRON AND STEEL INSTITUTE REPORTED

THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT
WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A
GIVEN WEEK 9308310112 930831 WHO'S NEWS FIVE TNT DIRECTORS RESIGN
QUESTIONING STRATEGIC DIRECTION

SYDNEY AUSTRALIA A BOARDROOM SPLIT OVER STRATEGY AT TNT LTD AN
INTERNATIONAL TRANSPORTATION CONCERN PROMPTED SEVERAL DIRECTORS TO RESIGN
INCLUDING THE COMPANY'S FOUNDER SIR PETER ABELES THUS ENHANCING THE POWER
OF THE COMPANY'S MANAGING DIRECTOR DAVID MORTIMER

TNT CHAIRMAN FRED MILLAR SAID FIVE DIRECTORS OF THE 12MEMBER BOARD QUIT
FOLLOWING A DISPUTE OVER THE DIRECTION OF THE COMPANY THE DIRECTORS WHO
RESIGNED SOUGHT A CHANGE IN TNT'S STATED STRATEGY OF IMPROVING OPERATING
EARNINGS SELLING NONCORE ASSETS AND REDUCING DEBT MR MILLAR SAID

IT'S GOOD NEWS SAID JULIAN MULCAHY WHO TRACKS TNT FOR THE STOCK
BROKERAGE FIRM ANZ MCCAUGHAN SECURITIES LTD IT LEAVES MORTIMER THERE TO DO
WHAT HE WANTS

MR MORTIMER FORMERLY TNT'S GROUP FINANCE DIRECTOR AND A 20YEAR VETERAN OF
TNT SUCCEEDED SIR PETER AS THE COMPANY'S MANAGING DIRECTOR LAST SEPTEMBER
HOWEVER SIR PETER A HUNGARIAN REFUGEE WHO MIGRATED TO AUSTRALIA AND SPENT
MORE THAN 40 YEARS TURNING TNT FROM A TWOTRUCK VENTURE INTO A WORLDCLASS
TRANSPORTATION COMPANY HAD REMAINED A DIRECTOR AND SERVED AS DEPUTY
CHAIRMAN ALTHOUGH SIR PETER BUILT TNT HIS FAMILY CONTROLS ONLY ABOUT 1 OF
TNT'S STOCK

TNT WATCHERS SPECULATE THAT SIR PETER AND HIS BACKERS MAY BE UNHAPPY WITH
THE WAY THAT TNT INTENDS TO REFOCUS ITSELF AND SUGGESTIONS THAT IT MAY RAISE
EQUITY ON THE STOCK MARKET TO STRENGTHEN ITS BALANCE SHEET SIR PETER WAS
TRAVELING OVERSEAS AND NOT AVAILABLE FOR COMMENT 9308310111 930831 FORD
TO LEAD ROUND OF UAW CONTRACTS GM LOSES EFFORT TO SET INDUSTRY PATTERN 
 BY ROBERT L SIMISON AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL
STREET JOURNAL

DEARBORN MICH THE UNITED AUTO WORKERS PICKED FORD MOTOR CO AS ITS
TARGET FOR NEGOTIATING A NEW CONTRACT DELAYING AN INEVITABLE CONFRONTATION
WITH GENERAL MOTORS CORP

WHILE THE MOVE REPRESENTS A DEFEAT FOR GM'S NEARLY YEARLONG CAMPAIGN TO
TAKE THE LEAD IN NEGOTIATING AN INDUSTRYPATTERN AGREEMENT IT RAISES THE
POSSIBILITY THAT THE UNION AND GM COULD NEGOTIATE A PATTERNBREAKING PACT
LATER A GM SPOKESMAN SPECIFICALLY MENTIONED AS A PRECEDENT THE UAW'S
CONCESSIONS TO CHRYSLER CORP IN 1979 AND THE EARLY 1980S IN RETURN FOR A
SEAT ON THE BOARD AND STOCK

GM'S SITUATION DIFFERS SHARPLY FROM THAT OF FORD OR CHRYSLER FORD IS THE
STRONGEST COMPANY FINANCIALLY AND CHRYSLER HAS SOME OF THE INDUSTRY'S
HOTTEST PRODUCTS

GM MEANWHILE HAS AN UNFUNDED PENSION LIABILITY OF 14 BILLION TO 19
BILLION COMPANY OFFICIALS HAVE SAID GM WHICH HAS 267000 US HOURLY
WORKERS NEEDS TO CUT THE TOTAL TO 200000 OR FEWER BY THE LATE 1990S
MOREOVER ITS HEALTH COSTS PER VEHICLE ARE DOUBLE THOSE OF FORD AND
CHRYSLER AND HIGH LABOR COSTS MAKE ITS PARTS UNITS UNCOMPETITIVE

AT THIS POINT THE UAW HAS STRUCK ITS CLASSIC STANCE OF DECLARING THAT IT
INTENDS TO NEGOTIATE AN INDUSTRYPATTERN CONTRACT AT FORD AND THEN TO SEEK
THE SAME DEAL FROM THE TWO OTHERS THE CURRENT CONTRACT EXPIRES SEPT 14 IF
AN AGREEMENT ON A NEW PACT HASN'T BEEN REACHED BY THEN FORD FACES A STRIKE
THREAT

FORD SAID IT WAS PLEASED TO BE CHOSEN AS THE TARGET ANY TIME YOU'RE THE
FIRST AND HAVE THE CHANCE TO INFLUENCE THE CONTRACT IT CAN BE TO YOUR
ADVANTAGE SAID JACK HALL FORD'S VICE PRESIDENT FOR EMPLOYEE RELATIONS HE
ADDED I WOULDN'T WANT TO PUT A PERCENTAGE ON IT BUT I THINK BOTH THE
UNION AND THE COMPANY ARE COMMITTED TO RESOLVING THIS THING WITHOUT A
STRIKE

WHILE GM HAS YET TO MAKE A FORMAL COMPREHENSIVE CONTRACT OFFER FORD AND
CHRYSLER LAST WEEK GAVE THE UAW SIMILAR PROPOSALS CALLING FOR UNSPECIFIED
PAY RAISES AND LUMPSUM PAYMENTS THE SHARING OF HEALTHCARE COSTS AND
SUBSTANTIALLY LOWER PAY AND BENEFITS FOR NEWLY HIRED WORKERS

THE PACKAGE THAT IS NOW ON THE TABLE IS NOT ACCEPTABLE SAID OWEN BIEBER
UAW PRESIDENT IN ANNOUNCING THE UNION'S TARGET MR BIEBER REITERATED THAT
THE UAW DOESN'T INTEND TO MAKE ANY CONCESSIONS ON ITS PRESENT GENEROUS
HEALTHCARE PACKAGE AND HE DECLARED JOB SECURITY THE UNION'S OTHER TOP
PRIORITY

THE UNION LEADER ALSO EMPHASIZED THAT THE GOAL IN TALKS AT FORD IS A
CONTRACT THAT DEALS WITH ALL THE TOUGH ISSUES OF 1993 AT ALL THREE CAR
MAKERS NOT JUST FORD IN RESPONSE TO A QUESTION ABOUT CONCESSIONS TO GM
MR BIEBER SAID IF I THOUGHT WE WEREN'T GOING TO HAVE A PATTERN I
WOULDN'T HAVE HAD TO GO THROUGH ALL THIS THIS MORNING BUT HE ADDED
THERE HAS NEVER BEEN A COOKIECUTTER AGREEMENT THERE ARE ALWAYS LITTLE
DIFFERENCES IN THE CONTRACTS WITH THE BIG THREE

GM ISSUED A STATEMENT SAYING IT HOPES THAT UAW AND FORD REACH AN AGREEMENT
THAT ADDRESSES THE COMMON COMPETITIVE CHALLENGES FACING THE DOMESTIC AUTO
INDUSTRY IT ADDED OBVIOUSLY WHEN OUR TIME COMES WE WILL SEEK AN
AGREEMENT THAT ADDRESSES CONCERNS AND ISSUES THAT ARE UNIQUE TO GENERAL
MOTORS

IN RESPONSE TO QUESTIONS A GM SPOKESMAN OBSERVED THAT THE UNION HAS LOOKED
AT SPECIAL SITUATIONS IN THE PAST I'M THINKING OF CHRYSLER SPECIFICALLY
 AND EVERYTHING ISN'T ALWAYS THE SAME IN BIG THREE AGREEMENTS

UAW INSIDERS SUGGEST THAT THE UNION WILL SETTLE FIRST AT FORD AND THEN AT
CHRYSLER THEN TACKLE GM'S REQUESTS FOR SPECIAL TREATMENT IN 1979 WHEN
CHRYSLER WAS SLIDING INTO ITS LONG BRUSH WITH BANKRUPTCY THE UAW SET A
PATTERN AT GM GOT FORD TO GO ALONG WITH IT THEN MADE THE FIRST OF A STRING
OF CONCESSIONARY AGREEMENTS WITH CHRYSLER

WALL STREET HAD GENERALLY EXPECTED GM TO SUCCEED IN ITS CAMPAIGN TO BE NAMED
THE TARGET IN PART BECAUSE STEPHEN YOKICH MR BIEBER'S MOST LIKELY
SUCCESSOR AS UAW PRESIDENT HEADS THE UNION'S GM DEPARTMENT BUT THERE WAS
LITTLE CONSTERNATION AT FORD'S SELECTION IN COMPOSITE TRADING ON THE NEW
YORK STOCK EXCHANGE GM SHARES EDGED DOWN 125 CENTS TO CLOSE AT 47 AND
FORD SHARES FELL 50 CENTS TO CLOSE AT 5125

IT'S EASY TO ARGUE THAT GM IS SUNK NOW SAID WENDY NEEDHAM AN ANALYST FOR
SMITH BARNEY HARRIS UPHAM & CO BUT IT'S NOT TO FORD'S ADVANTAGE TO
CONTINUE THE PRESENT CONTRACT I THINK THERE WILL BE WAYS OF DEALING WITH
THE SPECIAL PROBLEMS THAT GM HAS

ACCORDING TO AN ANALYSIS BY STEPHEN GIRSKY OF PAINEWEBBER CONTINUING THE
1990 CONTRACT WOULD COST GM 2 IN PERSHARE EARNINGS NEXT YEAR FORD 95
CENTS AND CHRYSLER 75 CENTS 9308310110 930831 WHO'S NEWS ALDUS NAMES
BRAINERD TO CHAIRMAN POST SEEKS PRESIDENT CHIEF

SEATTLE PAUL BRAINERD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALDUS
CORP WAS NAMED TO THE NEW POST OF CHAIRMAN OF THE MAKER OF BUSINESS
SOFTWARE FOR MICROCOMPUTERS

ALDUS SAID IT HAS RETAINED THE FIRM OF HEIDRICK & STRUGGLES TO CONDUCT A
SEARCH FOR A NEW PRESIDENT AND CHIEF EXECUTIVE THE 45YEAROLD MR BRAINERD
WILL CONTINUE IN THOSE POSTS UNTIL HIS SUCCESSOR IS NAMED

MR BRAINERD SAID THE MOVE WILL ALLOW HIM TO SHAPE ALDUS'S LONGTERM
BUSINESS VISION AND CORPORATE STRATEGY WHILE ALLOWING HIM TIME TO PURSUE
PERSONAL INTERESTS OUTSIDE THE SOFTWARE INDUSTRY

IN A RELATED MOVE ALDUS SAID IT IS ELIMINATING THE POSITION OF CHIEF
OPERATING OFFICER SANDY SMITH 44 WHO HAS HELD THAT POST SINCE DECEMBER
1992 ELECTED TO RESIGN FROM THE COMPANY EFFECTIVE IMMEDIATELY ALDUS
SAID MS SMITH COULDN'T IMMEDIATELY BE REACHED FOR COMMENT

SALES MARKETING FINANCE AND PRODUCT DEVELOPMENT FUNCTIONS FORMERLY
OVERSEEN BY MS SMITH NOW WILL FALL DIRECTLY UNDER THE CHIEF EXECUTIVE
OFFICER THE COMPANY SAID

ALDUS A SOFTWARE PIONEER SUFFERED LOSSES AND LAYOFFS LAST YEAR ANALYSTS
ATTRIBUTED THE WOES TO THE AGING OF A ONCEINNOVATIVE PRODUCT LINE SALES
AND PROFIT FELL IN EARLY 1993 AS CUSTOMERS AWAITED AN UPGRADED VERSION OF
THE COMPANY'S PAGEMAKER SOFTWARE PRODUCT

HOWEVER ALDUS STAGED A MODEST TURNAROUND IN THIS YEAR'S SECOND QUARTER WITH
PROFIT OF 222000 OR TWO CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS
OF 899000 OR SIX CENTS A SHARE REVENUE REBOUNDED TO 456 MILLION FROM
389 MILLION IN LAST YEAR'S SECOND QUARTER 9308310109 930831 YOUR MONEY
MATTERS CARD USERS MAY BE THE WINNING TARGETS OF A RAGING BATTLE IN
CREDIT INDUSTRY  BY STEPHEN FRANK STAFF REPORTER OF THE WALL
STREET JOURNAL

THERE'S A WAR RAGING IN THE CREDITCARD INDUSTRY AND INNOCENT CIVILIANS
MIGHT WANT TO STEP INTO THE CROSSFIRE

EAGER TO WIN MORE BUSINESS MANY CARD COMPANIES HAVE CUT INTEREST RATES TO
12 OR 13 SOME COMPANIES HAVE EVEN SLASHED THEM AS LOW AS 7 OR 8
COMPETITION HAS SQUEEZED THE AVERAGE CREDITCARD RATE TO 163 NATIONWIDE A
DROP OF ALMOST TWO PERCENTAGE POINTS FROM A YEAR AGO ACCORDING TO RAM
RESEARCH CORP A FREDERICK MD FIRM THAT TRACKS THE INDUSTRY

FEES ARE DOWN TOO SOME ISSUERS ARE WAIVING THE FIRSTYEAR FEE FOR NEW
CUSTOMERS WHILE MANY CHARGE NO FEE AT ALL THE AVERAGE ANNUAL FEE IS
1623 DOWN FROM 1654 A YEAR AGO

THIS IS GOOD NEWS FOR THE 87 MILLION AMERICANS WHO CARRY CREDIT CARDS THE
AVERAGE CARDHOLDER WHO CARRIES DEBT OF 3300 SPREAD OVER ROUGHLY SIX
CREDIT CARDS AND DEPARTMENTSTORE CARDS COULD SAVE CLOSE TO 200 A YEAR
BY CONSOLIDATING DEBT ONTO ONE CARD CHARGING 12 SAYS GERRI DETWEILER
EXECUTIVE DIRECTOR OF BANKCARD HOLDERS OF AMERICA A WASHINGTON CONSUMER
GROUP WITH AN 8 CARD THE AVERAGE CARDHOLDER COULD SAVE ABOUT 300 A YEAR
THERE ARE SOME GREAT DEALS OUT THERE SHE SAYS

THE BATTLE OF THE BANKCARDS IS FUELED BY THE LOWEST INTEREST RATES IN 20
YEARS AND BY A SHRINKING POOL OF APPLICANTS FOR NEW CARDS THE AMERICAN
POPULATION ISN'T GROWING FAST ENOUGH TO SUPPORT THE GROWTH RATES IN
CREDITCARD USE THAT WERE OCCURRING IN THE MID1980S SAYS DAVID ROBERTSON
PRESIDENT OF THE NILSON REPORT AN INDUSTRY NEWSLETTER IN LOS ANGELES AS A
RESULT CARD ISSUERS ARE FALLING ALL OVER THEMSELVES TO ATTRACT NEW
CUSTOMERS

CREDIT CARDS STILL GENERATE SUBSTANTIAL PROFITS FOR BANKS AND OTHER ISSUERS
EVEN AT A REDUCED 12 RATE FOR INSTANCE THE INTEREST THAT BANKS CAN EARN
FROM CREDITCARD LENDING IS MANY TIMES GREATER THAN THE 3 OR SO THEY PAY ON
CERTIFICATES OF DEPOSIT JAMES J DALY EDITOR OF THE CREDIT CARD NEWS AN
INDUSTRY NEWSLETTER ESTIMATES THAT WHILE CREDIT CARDS CONSTITUTE ABOUT 6
OF THE LOANS ISSUED BY BANKS THEY ACCOUNT FOR ABOUT 10 OF THEIR PROFITS

OF COURSE BANKERS SAY IT DOES COST A LOT TO PROVIDE MILLIONS OF PEOPLE WITH
SUCH UNSECURED CREDIT LINES FRAUDULENT CHARGES ALONE COST BANKS 38
BILLION LAST YEAR SAYS H SPENCER NILSON OF THE NILSON REPORT

BUT NEW PLAYERS INCLUDING BIG CORPORATIONS LIKE AMERICAN TELEPHONE &
TELEGRAPH CO AND GENERAL MOTORS CORP KEEP ENTERING THE FRAY HOPING TO
CAPTURE A SHARE OF THE MARKET THEY'RE OFFERING LOW RATES AND SPECIAL
BONUSES SUCH AS AIRLINE FREQUENTFLIER MILES DISCOUNTS ON NEW CARS AND
SAVINGS ON LONGDISTANCE TELEPHONE CALLS

SOME CONSUMERS ARE MOVING TO TAKE ADVANTAGE OF THE GOOD DEALS ALTHOUGH
ROBERT B MCKINLEY PRESIDENT OF RAM RESEARCH SAYS MILLIONS MORE SHOULD DO
SO THE AMOUNT OUTSTANDING ON CARDS CHARGING LESS THAN 165 SURGED BY MORE
THAN 60 BILLION IN 1992 TO 765 BILLION MEANWHILE DEBT ON CARDS
CHARGING MORE THAN 165 FELL BY ABOUT 42 BILLION TO 1225 BILLION THE
SHIFT REFLECTS TRANSFERS NEW OFFERINGS AND RATE CUTS BY EXISTING ISSUERS
MR MCKINLEY SAYS

NOT ALL LOWRATE CARDS ARE THE SAME SO IT PAYS TO READ THE FINE PRINT FOR
EXAMPLE THE LOWESTRATE CARDS USUALLY CHARGE VARIABLE RATES WHICH SADDLE
THE BORROWER WITH HIGHER COSTS WHEN INTEREST RATES GO UP MOST VARIABLERATE
CARDS ARE PEGGED TO THE BANKS' BENCHMARK PRIME LENDING RATE WHICH IS NOW
6

CARDS THAT OFFER A GRACE PERIOD USUALLY 25 DAYS BEFORE INTEREST
CHARGES START TO ACCRUE ARE GENERALLY BETTER THAN CARDS THAT BEGIN TO CHARGE
INTEREST ON THE DATE OF PURCHASE SOME CARDS HAVE HIGHER FEES THAN OTHERS
TOO

BY FAR THE CHEAPEST WAY TO USE A CARD IS TO PAY OFF THE ENTIRE BALANCE EACH
MONTH AND AVOID INTEREST CHARGES ENTIRELY FINANCIAL ADVISERS USUALLY
RECOMMEND THAT CONSUMERS WHO CARRY LARGE DEBT BALANCES LOOK FOR THE LOWEST
RATE WHILE THOSE WHO PAY THEIR BILLS IN FULL EVERY MONTH LOOK FOR THE
LOWEST FEES

SOME OF THE LOWESTRATE CARDS ARE AVAILABLE ONLY TO VERY LIMITED AUDIENCES
BASED ON BANKS' STRICT EVALUATION OF EACH APPLICANT'S CREDIT HISTORY SAYS
MR MCKINLEY OF RAM RESEARCH CURRENTLY THE LEAST EXPENSIVE UNSECURED CARD
ACCORDING TO RAM RESEARCH IS ISSUED BY SIGNET BANKING CORP OF RICHMOND
VA WITH A 7 VARIABLE RATE IT HAS A 29 ANNUAL FEE AND OFFERS A 25DAY
GRACE PERIOD

FOR MOST PEOPLE THE LOWRATE CARD THAT IS EASIEST TO OBTAIN IS OFFERED BY
THE BANK OF NEW YORK A UNIT OF BANK OF NEW YORK CO ACCORDING TO THE
NILSON REPORT THE CARD OFFERS AN 119 VARIABLE RATE WITH NO ANNUAL FEE
BUT IT LACKS A GRACE PERIOD MEANING THAT INTEREST CHARGES BEGIN ACCRUING
EACH TIME THE CARD IS USED

FOR THOSE WHO PAY OFF THEIR MONTHLY BILLS IN FULL THE NILSON REPORT
RECOMMENDS THE GENERAL MOTORS CARD ISSUED BY HOUSEHOLD INTERNATIONAL'S
HOUSEHOLD BANK OF SALINAS CALIF ITS VARIABLE RATE IS NO BARGAIN AT 104
PERCENTAGE POINTS OVER PRIME CURRENTLY TOTALING 164 BUT IT HAS A 25DAY
GRACE PERIOD NO ANNUAL FEE AND ALLOWS CARDHOLDERS TO APPLY 5 OF THEIR
CHARGES UP TO 500 PER YEAR TOWARD THE PURCHASE OF A GM CAR

CONSUMERS WHO WANT TO SHOP AROUND CAN OBTAIN INFORMATION ON AVAILABLE CARDS
AND RATES FROM SEVERAL SOURCES FOR 4 BANKCARD HOLDERS OF AMERICA WILL
SEND CUSTOMERS AN UPDATED LIST OF CARDS WITH THE LOWEST RATES THE TELEPHONE
NUMBER IS 8005538025

RAM RESEARCH CHARGES 5 PER ISSUE FOR ITS MONTHLY NEWSLETTER CARDTRAK
CONSUMERS CAN CALL 8003447714 OR SEND THEIR ADDRESS AND PAYMENT TO BOX
1700 FREDERICK MD 21702

FOR 19 THE CONSUMER CREDIT CARD RATING SERVICE AN AFFILIATE OF THE NILSON
REPORT SELLS A CREDIT CARD LOCATOR THAT INCLUDES A LIST OF 2000
AVAILABLE CARDS AND RATES AND AN ACCOMPANYING COST CALCULATOR THAT ALLOWS
CUSTOMERS TO FIGURE OUT THE TOTAL COST OF USING A CREDIT CARD THE ADDRESS
IS PO BOX 5483 OXNARD CALIF 93031 TELEPHONE 3103927720

NOTE RATES ARE FOR REGULAR CARDS NOT PREMIUM CARDS OR CARDS REQUIRING A
SECURITY DEPOSIT AS OF SEPT 1 ALL CARDS LISTED HAVE 25DAY GRACE PERIODS
9308310108 930831 MARKETING & MEDIA BANTAM DOUBLEDAY IS SUED BY 2
BOOKSELLERS OVER ITS TERMS OF SALE

NASHVILLE TENN BOOK DISTRIBUTOR INGRAM BOOK CO AND JOSEPHBETH
BOOKSELLERS FILED SUIT IN FEDERAL COURT AGAINST BANTAM DOUBLEDAY DELL
PUBLISHING GROUP INC CHARGING THE BOOK PUBLISHER WITH UNFAIR COMPENSATION
AND PROMOTIONAL PRACTICES

THE SUIT WAS FILED AUG 20 BY INGRAM A UNIT OF INGRAM INDUSTRIES INC AND
THE PRIVATELY OWNED LEXINGTON KY BOOKSTORE JOSEPHBETH BOOKSELLERS IN
US DISTRICT COURT IN NASHVILLE THE PARTIES CLAIM BANTAM DOUBLEDAY
COMPENSATES DISTRIBUTORS WHO SELL TO TRADITIONAL BOOKSTORES AT A LOWER LEVEL
THAN IT PAYS THOSE WHO SELL TO MASS MERCHANDISERS SUCH AS WHOLESALE CLUBS
AND DISCOUNT STORES

IN ADDITION THE SUIT ALLEGES THAT BANTAM DOUBLEDAY DOESN'T OFFER MARKETING
AND ADVERTISING FUNDS TO BOOKSTORES THAT ARE AVAILABLE TO MASS
MERCHANDISERS AN INGRAM SPOKESMAN SAID THE SUIT SEEKS TO ENJOIN BANTAM
DOUBLEDAY FROM ITS COMPENSATION POLICY AND TREBLE DAMAGES

BANTAM DOUBLEDAY A UNIT OF THE GERMAN PUBLISHING CONCERN BERTELSMANN AG
WAS UNFAZED BY THE LAWSUIT WHICH IT SAID HAS NO LEGAL MERIT A COMPANY
SPOKESMAN SAID OUR TERMS OF SALE ARE LEGAL FAIR AND NONDISCRIMINATORY
9308310107 930831 CREDIT RATINGS

COLUMBIA HOSPITAL CORP FORT WORTH TEXAS MOODY'S INVESTORS SERVICE
INC SAID IT UPGRADED THE SUBORDINATED DEBT RATINGS OF COLUMBIA TO BAA2 FROM
B2 BASED ON EXPECTATIONS THAT THE HOSPITAL OPERATOR'S PROPOSED MERGER WITH
GALEN HEALTH CARE INC LOUISVILLE KY WILL BE COMPLETED THE SURVIVING
COMPANY COLUMBIA HEALTHCARE CORP SHOULD PROVIDE GREATER DEBT PROTECTION
FOR BONDHOLDERS MOODY'S SAID THE SERVICE ALSO ASSIGNED A PROVISIONAL
RATING OF PRIME2 TO COLUMBIA HEALTHCARE FOR THE ISSUANCE OF COMMERCIAL
PAPER

NUCOR CORP CHARLOTTE NC STANDARD & POOR'S CORP AFFIRMED THE
STEELMAKER'S A1PLUS COMMERCIAL PAPER AND DOUBLEAMINUS SENIORDEBT
RATINGS ABOUT 200 MILLION OF DEBT IS AFFECTED THE ACTION REMOVES THE TWO
DEBT CATEGORIES FROM THE RATING AGENCY'S CREDITWATCH LIST WHERE THEY WERE
PLACED AUG 11 IN AFFIRMING THE RATINGS LAST WEEK S&P SAID NUCOR ENJOYS
THE PREMIER POSITION IN THE HIGHLY COMPETITIVE MINIMILL SEGMENT OF THE
DOMESTIC STEEL INDUSTRY S&P SAID THE RISKS CREATED BY NUCOR'S AGGRESSIVE
GROWTH STRATEGY ARE OFFSET BY ITS OPERATING EFFICIENCY AND DEMONSTRATED
STARTUP EXPERTISE ALONG WITH A CONSERVATIVE FINANCIAL POLICY
9308310106 930831 BUSINESS BRIEF BETHLEHEM STEEL CORP STEELWORKERS
UNION RATIFIES CONTRACT BY A WIDE MARGIN

THE UNITED STEELWORKERS AT BETHLEHEM STEEL CORP PITTSBURGH OVERWHELMINGLY
RATIFIED A PREVIOUSLY REPORTED SIXYEAR CONTRACT THAT GIVES THE UNION BOARD
REPRESENTATION AND JOB SECURITY IN EXCHANGE FOR PRODUCTIVITY IMPROVEMENTS

THE UNION SAID 7257 MEMBERS VOTED FOR THE CONTRACT WHICH REPLACES THE
AGREEMENT THAT EXPIRED JULY 31 WHILE 917 MEMBERS VOTED AGAINST IT

THE NEW AGREEMENT COVERS MORE THAN 10500 MEMBERS OF THE STEELWORKERS UNION
AT BETHLEHEM PLANTS AT BURNS HARBOR IND LACKAWANNA NY AND SPARROWS
POINT MD PARTS OF IT ALSO APPLY TO 5000 MEMBERS AT BETHLEHEM FACILITIES
IN BETHLEHEM AND STEELTON PA WHO PREVIOUSLY SETTLED WITH THE COMPANY ON
ECONOMIC MATTERS 9308310105 930831 WHO'S NEWS PHP HEALTHCARE CORP

PHP HEALTHCARE CORP ALEXANDRIA VA JOHN E MURPHY 56 YEARS OLD WAS
NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER OF THIS MANAGED
HEALTHCARE CONCERN MR MURPHY PREVIOUSLY VICE PRESIDENT OF MANAGEDCARE
SYSTEMS WILL REPORT TO AN EXECUTIVE COUNCIL HEADED BY CHARLES H ROBBINS
CHAIRMAN AND PRESIDENT OF THE COMPANY THE COMPANY ALSO SAID IT DIVIDED ITS
OPERATIONS INTO 10 BUSINESS GROUPS TO ALLOW UNIT MANAGERS TO FOCUS ON
SEPARATE BUSINESSES AND REACT MORE DECISIVELY TO INDUSTRY REFORMS
9308310104 930831 INTERNATIONAL BRIEF DAIICHI HOUSING LOAN CORP 
NOMURA LTCB AFFILIATES TO BUY 71 MILLION SHARES

JAPAN'S NOMURA SECURITIES CO AND LONGTERM CREDIT BANK OF JAPAN LTD PLAN
TO INVEST 22 BILLION YEN 2121 MILLION IN HOUSINGFINANCE COMPANY DAIICHI
HOUSING LOAN CORP

DAIICHI HOUSING ONE OF EIGHT MINISTRY OF FINANCEDESIGNATED HOUSINGFINANCE
COMPANIES SAID THE FUNDS WILL BE USED TO REPAY DEBT AS IT RESTRUCTURES

LTCB ONE OF JAPAN'S THREE LONGTERMCREDIT BANKS ALONG WITH SECURITIES
GIANT NOMURA ITS UNIT NOMURA LAND & BUILDING CO AND LTCB AFFILIATE NIPPON
LANDIC CO WILL PURCHASE 71 MILLION NEW SHARES AT 310 YEN 299 APIECE IN
MIDSEPTEMBER AFTER RETIRING DEBT DAIICHI HOUSING WILL BE LEFT WITH
CAPITAL OF 2213 BILLION YEN AND 1157 MILLION SHARES OUTSTANDING

BOTH NOMURA AND LTCB WILL MAINTAIN A 5 STAKE IN DAIICHI HOUSING NOMURA
LAND & BUILDING WILL BOOST ITS STAKE TO 278 FROM 05 AND NIPPON LANDIC
WILL TAKE A 276 STAKE 9308310103 930831 LEISURE & ARTS THE MOBILE
GUIDE SELLARS TO SCHIFF WORLD'S LARGEST CULTURE JAMBOREE  BY
PAUL LEVY

EDINBURGH SCOTLAND THERE IS NOTHING LIKE A FEW DAYS SPENT HERE AT
FESTIVAL TIME TO REMIND THE VISITOR THAT SCOTLAND IS DIFFERENT FROM THE REST
OF BRITAIN THE LAWS ARE DIFFERENT SO IS THE EDUCATION SYSTEM THE FOOD
THE DRINK THE ECONOMY AND THE BANK NOTES SCOTLAND ALSO HAS THE DISTINCTION
OF HOSTING THE WORLD'S LARGEST AND ALMOST THE LONGEST ANNUAL CULTURE
JAMBOREE

I'VE BEEN COMING TO THE EDINBURGH FESTIVAL OFF AND ON FOR 30 YEARS YOU HEAR
LOTS OF MOANING THAT THE MONTHLONG EVENT ISN'T WHAT IT WAS IN THE OLD DAYS
WHEN ROSTROPOVICH AND RICHTER PLAYED ALL OF THE BEETHOVEN PIANOCELLO
SONATAS AND THE HANDSOME YOUNG COUPLE JACQUELINE DU PRES AND DANIEL
BARENBOIM WERE OFTEN SEEN ATTENDING OTHER MUSICIANS' RECITALS WHEN THE
EDINBURGH FRINGE WAS THE NURSERY OF THE CULTURETOBE AND FEATURED PLAYS
SUCH AS JOAN LITTLEWOOD'S OH WHAT A LOVELY WAR PRIOR TO ITS GOING TO
LONDON OR COMEDY TURNS STARRING JONATHAN MILLER ALAN BENNETT PETER COOK
AND DUDLEY MOORE

WHEN YOU LOOK AT THE HIGHLIGHTS OF THIS YEAR'S FESTIVAL IT DOES SEEM THAT
THE GLORY DAYS ARE OVER INTERNAL POLITICS MEAN THAT THE VISUAL ARTS AND THE
FRINGE ACTIVITIES HAVE BEEN EXCLUDED FROM THE MAIN FESTIVAL PRINTED PROGRAM
AND INFORMATION ABOUT THEM WAS ALMOST IMPOSSIBLE TO GET BEFORE ONE ACTUALLY
ARRIVED HERE

THE MOST TALKED ABOUT OF THE THEATRICAL EVENTS WAS PETER SELLARS'S
PRODUCTION OF ROBERT AULETTA'S REWORKING OF THE PERSIANS BY AESCHYLUS BY
THE SECOND NIGHT THE ENTIRE CITY KNEW THAT IT WAS PLAYED WITHOUT SCENERY
MOSTLY ON THE FLOOR OF THE EXPOSED BACKSTAGE OF THE ROYAL LYCEUM THEATRE
THAT THE PART OF DARIUS WAS PLAYED BY THE DEAF ACTOR HOWIE SEAGO WHO
DELIVERED HIS LINES IN SIGN LANGUAGE WITH VOICEOVERS HE WAS THE LUCKY ONE
WHOSE EARDRUMS WERE NOT ASSAILED BY THE RACKET COMING FROM THE LOUDSPEAKERS
INSTALLED UNDER EVERY THIRD SEAT OR SO THAT ONE CHORUS WAS REPRESENTED
THOUGH WITHOUT ANY ATTEMPT AT DRAMATIC JUSTIFICATION BY THE EXQUISITE
JAVANESE COURT DANCING OF MARTINUS MIROTO THAT XERXES PLAYED BY MICHAEL
JACKSON NEARLOOKALIKE JOHN ORTIZ METAMORPHOSED INTO SADDAM HUSSEIN THAT
THE DRAWING OF PARALLELS BETWEEN THE DEFEAT OF THE PERSIANS AT THE HANDS OF
THE ATHENIANS AND THE RECENT EVENTS OF THE GULF WAR WAS JEJUNE AND THAT THE
ANTIAMERICAN TONE OF THE PIECE WAS JUST PLAIN SILLY

IT'S HARD TO BELIEVE THAT THIS TIRESOME PRODUCTION IN SOME PARTS LESS WELL
THOUGHT OUT THAN THE AVERAGE HIGH SCHOOL PLAY IS A PRODUCT OF THE SAME
IMAGINATION THAT GAVE US THE WITTY COSI FAN TUTTE SET IN DESPINA'S DINER
IF YOU REALLY WANT TO SEE FOR YOURSELF THERE WILL BE PERFORMANCES OF THE
PERSIANS AT THE MARK TAPER FORUM IN LOS ANGELES SEPT 30OCT 24 AND AT
PARIS BOBIGNY NOV 928

THE MUSICAL EVENTS OF THE FIRST WEEK OF THE FESTIVAL WERE FAR HAPPIER
SCOTTISH OPERA OPENED ITS TERRIFIC NEW PRODUCTION OF AN EARLY VERDI OPERA
TAKEN FROM A PLAY BY BYRON I DUE FOSCARI DIRECTOR HOWARD DAVIES PLAYED
IT STRAIGHTFORWARDLY EXCEPT FOR THE PENNYPINCHING UPDATING OF THE COSTUMES
TO VERDI'S OWN PERIOD THE SCOTTISH OPERA ORCHESTRA CONDUCTED BY RICHARD
ARMSTRONG WAS MAGNIFICENT AND SO WERE THE THREE LEAD SINGERS THE
SWEETVOICED CHINESE TENOR WHOSE SINGLE NAME IS DENG THE RUSSIAN SOPRANO
KATERINA KUDRIAVCHENKO WHOSE REMARKABLE CHESTWHISPERED PIANO PASSAGES
CONCEALED THE POWER OF A JET ENGINE AS SHE REVEALED IN HER UPPERREGISTER
FORTISSIMOS AND BRITISH BARITONE PHILLIP JOLL WHO STOOD IN AT THE LAST
MINUTE FOR THE AMERICAN FREDERICK BURCHINAL BRONCHITIS PREVENTED MR
BURCHINAL FROM SINGING SO HE ACTED THE PART AND MR JOLL SANG BEAUTIFULLY
AND INCREASINGLY VISIBLY FROM THE WINGS IT ALL ADDED TO THE FUN OF THE
OPERA IN WHICH THE PLINKAPLINK PIZZICATO OF VERDI'S ORCHESTRATION
DISCONCERTINGLY ACCOMPANIES THE MOST HEARTRENDINGLY TRAGIC MOMENTS OF THE
OPERA AND THE HEROES INVARIABLY DIE IN WALTZ TIME

WELSH SOPRANO ANNE EVANS WHO HAS RECENTLY CATAPULTED TO STARDOM AS
BAYREUTH'S BRUNNHILDE AND THE WELSH NATIONAL OPERA'S ISOLDE GAVE HER
FIRSTEVER RECITAL INCLUDING SONGS BY BERG AND WAGNER SHE IS SUCH A FINE
ACTRESS THAT HER VOICE SHOWED BEST IN SCHUMANN'S FRAUENLIEBE UND LEBEN
OP 42 WITH ITS STRONG NARRATIVE LINE SHE WAS ACCOMPANIED SUPERBLY BY
LIONEL FRIEND IN THIS PIECE IN WHICH THE WIFE'S UNHAPPINESS IN THE LAST
SONG OF THE CYCLE IS ONLY RESOLVED BY THE REPETITION OF THE JOYOUS MELODY OF
THE FIRST SONG IN THE PIANO FINALE AFTER HER THIRD ENCORE AN UNACCOMPANIED
SONG IN WELSH MS EVANS CHARMINGLY APOLOGIZED TO THE AUDIENCE AS THIS WAS
THE FIRST RECITAL SHE HAD EVER PREPARED AND YOU'VE HEARD IT ALL

THIS WAS ONE OF THE QUEEN'S HALL 11 O'CLOCK EVENTS WHICH CONTINUE
THROUGHOUT THE FESTIVAL AND LOOK TO BE THE MUSICAL HIGH POINTS OF THE
MONTH ON ANOTHER MORNING THE YOUNG HUNGARIAN PIANIST ANDRAS SCHIFF GAVE A
STAGGERINGLY PERSPICUOUS ACCOUNT OF TWO SCHUBERT SONATAS E FLAT MAJOR
D568 AND C MINOR D958 AS WELL AS OF JANACEK'S ONLY SURVIVING PIANO
SONATA IN E FLAT MINOR 1 X 1905 THE CLARITY OF PHRASING WAS
EXTRAORDINARY EVEN IN THE SECOND MOVEMENT OF THE JANACEK WITH ITS GREAT
FISTFULS OF NOTES IN THE LEFT HAND

TIMOTHY CLIFFORD THE DIRECTOR OF THE NATIONAL GALLERIES OF SCOTLAND GOT
EVEN FOR HIS EXCLUSION FROM THE FESTIVAL PROGRAM BY GIVING A GRAND PARTY AT
THE NATIONAL GALLERY AT WHICH THE NOBLES AND BURGHERS OF EDINBURGH WENT ALL
OUT TO COMPLY WITH THE INVITATION'S DEMAND DRESS BLACK TIE OR GREAT ART
THE MOST SUCCESSFUL IMPERSONATIONS WERE OF THE MUSEUM'S OWN VELAZQUEZ OLD
WOMAN COOKING EGGS AND OF VAN EYCK'S ARNOLFINI WEDDING BY A COUPLE SHE
VISIBLY PREGNANT AND HE HOLDING A WHITE TERRIER ON A LEAD

IN A BACK ROOM AT THE NATIONAL GALLERY UNTIL SEPT 26 AFTER WHICH IT GOES
TO THE FITZWILLIAM MUSEUM AT CAMBRIDGE AND THE NATIONAL PORTRAIT GALLERY
LONDON IS A SMALL EXHIBITION OF HOLBEIN'S DRAWINGS AND MINIATURES FROM THE
ROYAL LIBRARY WINDSOR CASTLE THIS IS AN UNUSUAL CHANCE TO SEE THESE
BEAUTIFUL AND TECHNICALLY INTERESTING WORKS

EVEN MORE EXCITING IS RUSSIAN PAINTING OF THE AVANT GARDE AT THE SCOTTISH
NATIONAL GALLERY OF MODERN ART WHERE THE SPLENDID PERMANENT COLLECTION
INCLUDES HALF A DOZEN FINE VUILLARDS AND WORKS BY CONTEMPORARY BRITISH
MASTERS SUCH AS HOWARD HODGKIN AND MICHAEL ANDREWS THE SHOW WHICH
CONTINUES UNTIL SUNDAY IS A COMPILATION OF MORE THAN 80 ALMOST UNKNOWN
PAINTINGS DONE BETWEEN 1906 AND 1924 AND BORROWED FROM 11 PROVINCIAL
MUSEUMS THE VIGOR OF THE ART OF THE PERIOD IS ASTONISHING PARTICULARLY
THAT OF THE SEVERAL FEMALE ARTISTS REPRESENTED I WAS PARTICULARLY PLEASED
TO SEE NO FEWER THAN 11 PICTURES BY NATALYA GONCHAROVA A WONDERFUL
COLORIST WHOSE WORK FIGURES IN ALMOST EVERY ROOM OF THIS CAREFULLY HUNG
SHOW

THE ONLY OFFICIAL ART EVENT OF THE FESTIVAL IS THE WAKING DREAM
PHOTOGRAPHY'S FIRST CENTURY AT THE CITY ART CENTRE UNTIL SATURDAY
TRANSFERRED FROM NEW YORK'S METROPOLITAN MUSEUM OF ART THE PHOTOGRAPHS ARE
ALL FROM THE COLLECTION OF GILMAN PAPER CO AND WERE CHOSEN FOR AESTHETIC
MERIT ALONE WHICH MAKES THIS SHOW BREATHTAKING

THE UNRIVALED COLLECTION WAS CREATED BY HAROLD GILMAN WITH THE ADVICE OF ART
CONSULTANT PIERRE APRAXINE WHO ADVISED THE BUSINESSMAN ABOUT HIS PURCHASES
FOR TWO DECADES THE RESULT WAS A CORPORATE ART COLLECTION WITH THE
STANDARDS OF CONNOISSEURSHIP OF A PRIVATE COLLECTION SHAPED AND DIRECTED BY
THE TASTES OF TWO FARSEEING INDIVIDUALS

THE EXHIBITION CAPTIONS ECHO THE REMARKS BY MARIA MORRIS HAMBOURG IN THE
SPLENDID MET CATALOG AND TELL YOU AS MUCH ABOUT THE TECHNICAL SIDE OF THE
HISTORY OF PHOTOGRAPHY AS THEY DO ABOUT THE SUBJECTS OF THE PHOTOGRAPHS I
WAS A LITTLE DISAPPOINTED AT THE UNDERREPRESENTATION OF PHOTOGRAPHY SINCE
WORLD WAR II WHEN THE WHOLE IDEA OF PHOTOGRAPHY AS ART CAME TO MATURITY
BUT IF YOU MISSED THIS EXHIBITION IN NEW YORK IT IS ITSELF A GOOD ENOUGH
EXCUSE TO COME TO EDINBURGH 9308310102 930831 INTERNATIONAL BRIEF AEG
AG GERMAN FIRM DENIES REPORT CONCERNING POSSIBLE SALES

DAIMLERBENZ'S AG'S UNPROFITABLE ELECTRONICS DIVISION AEG AG DENIED A
PUBLISHED REPORT THAT IT WANTS TO SELL SECTIONS OF THE BUSINESS

THE SAME REPORT IN TUESDAY'S EDITIONS OF THE GERMAN PUBLICATION MANAGER
MAGAZIN ALSO SAID DAIMLER'S GROUP SALES DECLINED 13 FOR THE FIRST HALF OF
THE YEAR THE BIG INDUSTRIAL GROUP ISN'T SCHEDULED TO RELEASE ITS SIXMONTH
REPORT UNTIL MIDSEPTEMBER

A SPOKESMAN FOR AEG SAID WE'RE NOT TALKING ABOUT SELLING HE ADDED I
CAN ONLY REPEAT WHAT I'VE SAID BEFORE WE'RE TALKING TO A COUPLE OF FIRMS
ABOUT STRATEGIC ALLIANCES AND COOPERATION

EVEN SO INDUSTRY INDIVIDUALS CLOSE TO THE DAIMLER GROUP SAID COOPERATIVE
VENTURES AND SALES OF AS MUCH AS 50 OF AEG'S HOLDINGS IN CERTAIN OPERATIONS
WERE POSSIBLE

THE MAGAZINE ARTICLE FOLLOWS RUMORS ON THE FRANKFURT STOCK EXCHANGE THAT
DAIMLER MIGHT SELL THE TROUBLED UNIT THOSE RUMORS HAVE DRIVEN AEG'S SHARE
PRICE SPORADICALLY FOR MONTHS YESTERDAY AEG SHARES FELL 13 MARKS TO 170
MARKS 9308310101 930831 INTERNATIONAL BRIEF HOECHST AG GERMAN
FIRM'S PRETAX PROFIT DROPPED 31 FOR FIRST HALF

HOECHST AG SAID ITS GROUP PRETAX PROFIT FELL 31 FOR THE FIRST HALF ON A
24 DROP IN SALES

PRETAX PROFIT DROPPED TO 781 MILLION MARKS 4692 MILLION FROM 113
BILLION MARKS A YEAR EARLIER THE RESULTS WERE SLIGHTLY WORSE THAN ANALYSTS
EXPECTED SALES FELL TO 2288 BILLION MARKS FROM 2345 BILLION MARKS

HOECHST LIKE OTHER GERMAN CHEMICAL COMPANIES BLAMED ITS SLUMPING PROFIT ON
WEAK DEMAND AND LOW PRICES THE PROBLEMS THAT THE GROUP FACED WORLDWIDE
HAVE BEEN INTENSIFIED BY GERMANY'S SAGGING ECONOMY IT SAID IT ADDED THAT
THE SECOND QUARTER WAS WEAKER THAN THE FIRST

FORECASTING A DIFFICULT SECOND HALF ESPECIALLY FOR DOMESTIC OPERATIONS
HOECHST SAID BUSINESS IN JULY AND AUGUST WAS ALSO WEAK ADDING THAT IT
DOESN'T SEE ANY SPECIAL IMPETUS FOR BUSINESS IN THE COMING MONTHS THE
COMPANY SAID IT WOULD CONTINUE PROGRAMS TO CUT COSTS AND IMPROVE THE
STRUCTURE OF THE COMPANY BUT DIDN'T ELABORATE

SALES AT THE US DIVISION HOECHST CELANESE AMOUNTED TO 31 BILLION DOWN
6 9308310100 930831 BUSINESS BRIEF PENN TRAFFIC CO AGREEMENT IS
SET TO ACQUIRE INSALACO'S OPERATING ASSETS

FOOD RETAILER PENN TRAFFIC CO AGREED TO BUY THE OPERATING ASSETS OF
INSALACO MARKETS INC OF PITTSTON PA FOR 41 MILLION PLUS THE ASSUMPTION
OF 4 MILLION OF DEBT PENN TRAFFIC WILL ALSO BUY INSALACO'S INVENTORY OF
MERCHANDISE FOR 8 MILLION

INSALACO OPERATES 12 SUPERMARKETS IN NORTHEASTERN PENNSYLVANIA AND IS
BUILDING TWO MORE AND HAS ESTIMATED ANNUAL SALES OF 155 MILLION PENN
TRAFFIC JOHNSTOWN PA OPERATES 217 SUPERMARKETS IN NEW YORK
PENNSYLVANIA OHIO AND WEST VIRGINIA FOR THE THE FISCAL YEAR ENDED JAN 30
IT REPORTED SALES OF 28 BILLION

IN CONNECTION WITH THE PURCHASE PENN TRAFFIC SAID IT SECURED AN INCREASE IN
ITS REVOLVING CREDIT FACILITY TO 200 MILLION FROM 175 MILLION WITH A
BANK SYNDICATE LED BY THE US UNIT OF NATIONAL WESTMINSTER BANK PLC THE
FACILITY'S MATURITY HAS BEEN EXTENDED FROM APRIL 1998 TO APRIL 2000
9308310099 930831 BUSINESS BRIEF DUTY FREE INTERNATIONAL INC FISCAL
2NDQUARTER NET FELL COMPANY CITES CANADA SALES

DUTY FREE INTERNATIONAL INC HURT BY THE CANADIAN RECESSION AND THE LOWER
VALUE OF THE CANADIAN DOLLAR COMPARED WITH THE YEAREARLIER LEVEL SAID
EARNINGS FELL 20 IN ITS FISCAL SECOND QUARTER

THE RIDGEFIELD CONNBASED OPERATOR OF DUTY FREE STORES SAID NET INCOME FOR
THE QUARTER ENDED JULY 31 WAS ABOUT 8 MILLION OR 29 CENTS A SHARE
COMPARED WITH 99 MILLION OR 35 CENTS A SHARE THE COMPANY'S SHARES CLOSED
AT 16625 DOWN 625 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE
YESTERDAY

SALES ALONG THE USCANADIAN BORDER FELL 13 TO 301 MILLION DUTY FREE
SAID HOWEVER SALES ALONG THE USMEXICAN BORDER ROSE 9 TO 292 MILLION
AND SALES IN AIRPORTS ROSE 33 TO 198 MILLION OVERALL SALES ROSE 39 TO
993 MILLION FROM 955 MILLION 9308310098 930831 TOM BROWN CONOCO TEST
WELL

MIDLAND TEXAS TOM BROWN INC AND CONOCO INC A UNIT OF DUPONT CO SAID
ITS WILDCAT DISCOVERY WELL IN TERRELL COUNTY TEXAS TESTED AT A DAILY RATE
OF SIX MILLION CUBIC FEET OF NATURAL GAS AND 240 BARRELS OF CONDENSATE AN
OILLIKE LIQUID

THE ACU 49 NO 1 WELL WAS TESTED ON A 1/4INCH CHOKE OR RESTRICTED
OPENING TOM BROWN THE OPERATOR AND CONOCO EACH OWN A 50 INTEREST IN THE
WELL AND THE TWO COMPANIES HAVE AGREED TO EXPLORE AND DEVELOP JOINTLY A
58000ACRE AREA IN ITS VICINITY

TOM BROWN SAID IT ACQUIRED A 50 INTEREST IN THE ACREAGE LOCATED IN THE
PERMIAN BASIN OF WESTERN TEXAS FROM CONOCO FOR 17 MILLION 9308310097
930831 TECHNOLOGY & HEALTH COMPUTER FIRMS MENACED BY MICROSOFT ARE
PLANNING NEW EFFORT TO UNIFY UNIX  BY JIM CARLTON AND DAVID P
HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL

MAKERS OF COMPUTER WORKSTATIONS THAT USE THE UNIX OPERATING SYSTEM HAVE
AGREED TO STREAMLINE A NOWFRAGMENTED SYSTEM OF PROGRAMMING IN AN EFFORT TO
THWART COMPETITION FROM MICROSOFT CORP

IN THE AGREEMENT TO BE ANNOUNCED TOMORROW IN NEW YORK THE COMPANIES ARE
ESTABLISHING A COMMON STANDARD THAT WILL ENABLE OUTSIDE SOFTWARE VENDORS TO
WRITE JUST ONE BASIC VERSION OF A PROGRAM SUCH AS A SPREADSHEET OR A
MECHANICAL DESIGN PROGRAM INSTEAD OF THE CURRENT TIMECONSUMING METHOD OF
HAVING TO MODIFY EACH PROGRAM TO OPERATE ON EACH COMPUTER MAKER'S UNIX
SYSTEM THE COMPANIES HOPE TO IMPLEMENT THE STANDARD NOW IN DRAFT FORM BY
THE END OF THE YEAR

WHILE EACH COMPUTER MAKER WILL STILL HAVE ITS OWN VERSION OF UNIX THE NEW
STANDARD WILL GIVE SOFTWARE WRITERS THE SAME SPECIFICATIONS FOR WRITING THE
UNIVERSAL PROGRAMS THERE HAVE BEEN PAST EFFORTS TO UNIFY UNIX BUT ANALYSTS
SAY THIS EFFORT HAS A BETTER SHOT AT SUCCESS BECAUSE IT INVOLVES SO MANY
COMPANIES

IT ESSENTIALLY UNIFIES PROBABLY 95 OF ALL THE VOLUME IN UNIX SUCH THAT
THE VAST MAJORITY OF APPLICATIONS WRITTEN WILL BE PORTABLE AND YOU CAN WRITE
ONE VERSION FOR EVERYBODY SAID JIM BILLMAIER VICE PRESIDENT OF PRODUCT
MARKETING FOR SUNSOFT INC A SOFTWAREVENDING UNIT OF SUN MICROSYSTEMS INC

AMONG THE MORE THAN THREE DOZEN COMPANIES INDICATING THEIR SUPPORT OF THE
COMMON STANDARD AND WHO HAVE PLANS TO SHIP PRODUCTS BASED ON IT ARE APPLE
COMPUTER INC DIGITAL EQUIPMENT CORP HEWLETTPACKARD CO INTERNATIONAL
BUSINESS MACHINES CORP AND SUN MICROSYSTEMS AN INDUSTRY GROUP CONSISTING
OF UNIX SYSTEM VENDORS THE OPEN SOFTWARE FOUNDATION AND UNIX INTERNATIONAL
INC CREATED THE DRAFT STANDARD AND WILL WORK WITH X/OPEN CO A MENLO
PARK CALIF STANDARDSSETTING BODY TO COMPLETE IT

ALTHOUGH UNIX SYSTEMS ARE SIMILAR ENOUGH DIFFERENCES EXIST AMONG COMPUTER
MAKERS THAT SUPPLIERS OF THEIR SOFTWARE HAVE TO WRITE ONE VERSION OF A
PROGRAM FOR ONE COMPUTER MAKER LIKE HEWLETTPACKARD AND A SEPARATE ONE FOR
ANOTHER MAKER LIKE APPLE

THE DIFFERENCES ARE OFTEN SMALL BUT COSTLY NEVERTHELESS BECAUSE SEPERATE
MANUALS AND CODES HAVE TO BE PRODUCED IN THE CASE OF A SOFTWARE PROGRAM
THAT DOES MECHANICAL DESIGN THE COMMAND TO OPEN THE FILE IS A LITTLE
DIFFERENT IN SAY AN IBM SYSTEM THAN AN HP SYSTEM SAID ROBERT
WEINBERGER MARKETING MANAGER FOR THE WORKSTATION GROUP OF HEWLETTPACKARD
BASED IN PALO ALTO CALIF

THESE KIND OF DIFFERENCES HAVE MADE IT IMPOSSIBLE TO CREATE UNIVERSAL
SHRINKWRAPPED SOFTWARE PACKAGES FOR THE WORKSTATION MARKET SUCH SOFTWARE
HAS BEEN KEY TO THE GROWTH OF THE PC INDUSTRY WHICH IS LARGELY UNIFIED
AROUND THE COMMON STANDARDS OF MICROSOFT OPERATING SOFTWARE AND INTEL CORP
MICROPROCESSORS

NOW FACED WITH MICROSOFT'S RECENT INTRODUCTION OF WINDOWS NT A WORKSTATION
VERSION OF THE COMPANY'S POPULAR WINDOWS PC SOFTWARE THE UNIX VENDORS ARE
FEELING THE HEAT TO SETTLE ON A STANDARD BEFORE IT'S TOO LATE

THERE HAS BEEN A TENDENCY TO MAKE MY UNIX BETTER THAN YOUR UNIX' SAID
RIKKI KIRZNER PRINCIPAL ANALYST FOR DATAQUEST A MARKET RESEARCH FIRM BASED
IN SAN JOSE CALIF BUT THE UNIX VENDORS ARE FINALLY PULLING TOGETHER
BECAUSE THEY REALLY UNDERSTAND THAT MICROSOFT IS A MAJOR THREAT TO THEM
PRIMARILY BECAUSE NT IS GOING AFTER THE SAME WORKSTATION AND SERVER MARKET
THAT UNIX HAS DOMINATED 9308310096 930831 INDUSTRY FOCUS FLURRY OF
TAKEOVER ACTIVITY HITS WEST VIRGINIA BANKS  SOLID FIRMS STABLE
ECONOMY ATTRACT BUYERS BOTH IN AND OUT OF STATE  BY GABRIELLA
STERN STAFF REPORTER OF THE WALL STREET JOURNAL

BANK TAKEOVER FEVER IS RAGING IN WEST VIRGINIA

THIS STATE OF ROLLING HILLS COAL MINES AND PICKUP TRUCKS HAS SEEN A FLURRY
OF MERGERS AND ACQUISITIONS BY INSTATE BANKS AND BIG OUTOFSTATE BANKS IN
THE PAST FEW YEARS

QUITE SIMPLY THE STATE BOASTS AN ARRAY OF FINANCIALLY SOLID BANKS AND A
STABLE DIVERSE ECONOMY DESPITE ITS REPUTATION AS A POOR RURAL BACKWATER

IT'S A STATE THAT KIND OF GETS OVERLOOKED BUT WHEN YOU LOOK CLOSELY
YOU'VE GOT SOME VERY GOOD VERY HIGHPERFORMING BANK COMPANIES SAYS JIM
MABRY MANAGING DIRECTOR OF THE FINANCIAL INSTITUTIONS GROUP AT WHEAT FIRST
SECURITIES RICHMOND VA THE TOP WEST VIRGINIA BANKS MR MABRY ADDS ARE
VERY GOOD PERFORMERS WITH HIGH PROFITABILITY LOW LEVELS OF NONPERFORMING
ASSETS AND EXCELLENT MANAGEMENT

ALTHOUGH THE SIZE OF THE BANK MERGERS IS SMALL BY NATIONAL STANDARDS THE
RATE OF CONSOLIDATION HAS BEEN RELATIVELY HIGH TODAY THERE ARE 164 BANKS
IN WEST VIRGINIA DOWN FROM 241 IN 1982 THIRTYSEVEN BANK AND THRIFT
ACQUISITIONS HAVE BEEN ANNOUNCED SINCE 1990 OF THE FIVE LARGEST WEST
VIRGINIA BANKS TWO ARE NOW OWNED BY OUTOFSTATE CONCERNS BANC ONE CORP
AND HUNTINGTON BANCSHARES INC BOTH OF COLUMBUS OHIO BANKERS AND ANALYSTS
BELIEVE THAT OF THE OTHER THREE TOP BANKS SOME OR ALL WILL BE ACQUIRED BY
OUTOFSTATE BANKS DURING THE NEXT FEW YEARS

I WOULD BE SURPRISED IF THREE YEARS FROM NOW THREE OF THE FIVE TOP BANKING
INSTITUTIONS STILL WERE INSTATE OWNED SAYS BILL MCLAUGHLIN CHAIRMAN OF
HUNTINGTON BANCSHARES WEST VIRGINIA INC HUNTINGTON'S WEST VIRGINIA UNIT

INDEED THE THREE BANKS ONE VALLEY BANCORP OF WEST VIRGINIA INC UNITED
BANKSHARES INC AND WESBANCO INC MAY HAVE TROUBLE TURNING DOWN LUCRATIVE
OFFERS NO MATTER HOW HARD THEY FIGHT TO STAY INDEPENDENT ACCORDING TO
BANKERS AND ANALYSTS

IN ADDITION TO THE BANKS THEMSELVES PART OF THE ATTRACTION IS THE STATE'S
ECONOMY ONCE DANGEROUSLY DEPENDENT ON THE WANING COAL INDUSTRY WEST
VIRGINIA HAS MANAGED TO TRANSFORM ITS ECONOMY INTO ONE WHICH IS MUCH BETTER
BALANCED AMONG SERVICE MANUFACTURING GOVERNMENT AND MINING JOBS

MOREOVER IN THE LATE 1980S WHEN BANKS IN OTHER STATES WERE POURING MONEY
INTO RISKY REALESTATE LOANS THE BANKS OF WEST VIRGINIA PLAYED IT CLOSE TO
THE VEST STICKING TO SAFER AUTOMOBILE HOME AND SMALL COMMERCIAL LOANS
MOSTLY TO WEST VIRGINIA CUSTOMERS INDEED WEST VIRGINIA HAS HAD ONLY FOUR
BANK FAILURES SINCE 1980 ACCORDING TO THE STATE'S DIVISION OF BANKING

WE DIDN'T HAVE APARTMENT COMPLEXES SHOPPING CENTERS AND OFFICE BUILDINGS
GOING UP LIKE CRAZY HUNTINGTON'S MR MCLAUGHLIN SAYS THE GOOD
OLDFASHIONED MENTALITY STILL EXISTS IN WEST VIRGINIA ABOUT THINGS LIKE
PROMPTLY PAYING YOUR BILLS SAYS MR MCLAUGHLIN WHO WAS CHAIRMAN OF CB&T
FINANCIAL CORP FAIRMONT BEFORE IT WAS ACQUIRED BY HUNTINGTON

DEMAND FOR WEST VIRGINIA BANKS APPEARS TO BE GROWING AS RISING TAKEOVER
PRICES WOULD SUGGEST IN THE STATE THE AVERAGE ACQUISITION PRICE AS A
PERCENTAGE OF THE BOOK VALUE OF THE BANK BEING ACQUIRED HAS INCREASED TO
203 FROM 131 IN 1990 ACCORDING TO SNL SECURITIES BASED IN
CHARLOTTESVILLE VA

INDEED A FEW OF THE NATION'S STRONGEST BANKS HAVE VIED FOR A PIECE OF THE
WEST VIRGINIA BANKING INDUSTRY IN RECENT YEARS

IN 1992 GIANT BANC ONE OUTBID PITTSBURGH'S MELLON BANK CORP FOR KEY
CENTURION BANCSHARES INC HUNTINGTON A MIDSIZE POWERHOUSE HAS AGREED TO
ACQUIRE THREE WEST VIRGINIA BANKS SINCE LATE 1989

THE ATTRACTION FOR THESE BANKS IS THE OPPORTUNITY TO EXPAND IN AN ADJOINING
STATE THAT OFFERS A SOURCE OF STABLE PROFITS DAVID STUMPF AN ANALYST WITH
WHEAT FIRST BELIEVES THAT IN THE NEXT FEW YEARS BANC ONE AND HUNTINGTON
COULD MAKE OTHER ACQUISITIONS IN THE STATE MELLON MAY TRY AGAIN AND OTHER
PITTSBURGH AND OHIO BANKS MAY BEGIN COMPETING FOR WEST VIRGINIA BANKS BANC
ONE HUNTINGTON AND MELLON WOULDN'T COMMENT ON ACQUISITION PLANS

WEST VIRGINIA IS CONTIGUOUS TO MARKETS THEY OPERATE IN AND WHILE THIS MAY
NOT BE A MAJOR GROWTH MARKET FOR THESE COMPANIES ITS STABLE CORE DEPOSIT
BASE WOULD COMPLEMENT OTHER GROWTH AREAS MR STUMPF SAYS

CHARLESTONBASED UNITED BANKSHARES FOR ONE IS AWARE THAT IT MAY BE A
DESIRABLE TAKEOVER TARGET

ASKED ABOUT THE PROSPECTS OF A SALE RICHARD M ADAMS CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF UNITED SAYS IF WE HAD AN OFFER FROM AN OUTOFSTATE
COMPANY THE BOARD WOULD CERTAINLY EXPLORE IT HE ADDS HOWEVER THAT FOR
NOW UNITED WILL CONTINUE EXPANDING THROUGH ACQUISITIONS SINCE 1983 THE
COMPANY HAS INCREASED ITS TOTAL ASSETS TO 17 BILLION FROM 100 MILLION
LARGELY BY BUYING SMALLER WEST VIRGINIA BANKS DURING THE PAST 12 MONTHS
ALONE UNITED HAS MADE FOUR ACQUISITIONS ADDING ABOUT 500 MILLION IN
ASSETS

UNITED ISN'T THE ONLY WEST VIRGINIA BANK WITH A BIG APPETITE FOR SMALLER
BANKS LAST WEEK WHEELINGBASED WESBANCO AGREED TO ACQUIRE FIRST FIDELITY
BANCORP INC FAIRMONT IN A STOCK TRANSACTION VALUED AT 70 MILLION
EARLIER IN AUGUST CHARLESTONBASED ONE VALLEY SIGNED A DEFINITIVE AGREEMENT
TO BUY MOUNTAINEER BANKSHARES OF WVA INC MARTINSBURG IN A STOCK SWAP
VALUED AT 126 MILLION

ALL THIS ACTIVITY MAKES FOR SOME INTERESTING MARKETING SCRAPS BETWEEN THE
INDEPENDENT BANKS AND THOSE OWNED BY OUTOFSTATE CONCERNS ONE VALLEY'S ADS
BOAST THAT IT'S THE ONE BANK FOR ALL OF WEST VIRGINIA UNITED'S ADS
PROCLAIM THAT IT IS BORN RAISED AND GROWING IN WEST VIRGINIA

COUNTERING SUCH HOMESPUN MESSAGES KEY CENTURION WHOSE NAME OFFICIALLY
CHANGES TO BANC ONE ON SEPT 13 IS PLANNING A MEDIA CAMPAIGN WITH ADS
STRESSING THAT IN SOME CASES BIGGER IS BETTER AND OTHERS EMPHASIZING
THAT WE STILL DO THINGS CLOSE TO HOME THAT WE'RE THERE WHEN YOU NEED US
MAKING LOANS IN THE COMMUNITY SAYS BEVERLY MCKINNEY DIRECTOR OF MARKETING
FOR BANC ONE WEST VIRGINIA

AWARE THAT WEST VIRGINIA IS POPULATED BY PROUD INDEPENDENT SOULS BANC ONE
AND HUNTINGTON HAVE TENDED TO LEAVE MUCH OF THE PREVIOUS MANAGEMENT INTACT
WHEN MAKING ACQUISITIONS MIKE PERRY NOW PRESIDENT AND CHIEF EXECUTIVE
OFFICER OF BANC ONE WEST VIRGINIA WAS PRESIDENT AND CHIEF EXECUTIVE OF KEY
CENTURION KEY CENTURION INCREASED TO 3 BILLION IN ASSETS FROM 200 MILLION
A DECADE AGO LARGELY THROUGH 21 INSTATE ACQUISITIONS AND ONE ACQUISITION
IN EASTERN KENTUCKY WE THINK THE DECISIONMAKING PROCESS SHOULD BE MADE
CLOSE TO WHERE THE PEOPLE ARE MR PERRY SAYS 9308310095 930831
FINANCING BUSINESS STAODYN INC

STAODYN INC LONGMONT COLO SAID IT FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF AS MANY AS ONE MILLION
UNITS EACH UNIT WOULD COMPRISE ONE COMMON SHARE AND ONE WARRANT TO PURCHASE
A SHARE OF COMMON STOCK AT THE UNIT OFFERING PRICE COHIG & ASSOCIATES
ENGLEWOOD COLO WILL BE THE MANAGING UNDERWRITER AS PART OF THE OFFERING
THE EXERCISE PRICE OF THE MEDICALDEVICE COMPANY'S WARRANTS ISSUED IN ITS
1991 FINANCING WOULD BE REDUCED TO THE SAME EXERCISE PRICE AS THE NEW
WARRANTS WHICH WOULD EXPIRE ON JUNE 19 1994 9308310094 930831 MOODY'S
PUTS RATINGS OF NATIONAL MEDICAL'S DEBT UNDER REVIEW

NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT PLACED UNDER REVIEW FOR
POSSIBLE DOWNGRADING THE BAA3 RATINGS ON NATIONAL MEDICAL ENTERPRISES INC'S
APPROXIMATELY 400 MILLION OF UNSECURED SENIOR DEBT

THE RATINGS SERVICE SAID THE MOVE WAS PROMPTED BY THE POTENTIAL FOR FURTHER
WEAKENING OF NME'S OPERATIONS AND COMPETITIVE STRENGTH AS A RESULT OF
ESCALATING LITIGATION WITH INSURANCE GROUPS AND A BROADENED CRIMINAL
INVESTIGATION INTO NATIONAL MEDICAL'S PSYCHIATRICHOSPITAL SEGMENT

IN ADDITION MOODY'S SAID THE REFINANCING OF INTERMEDIATE TERM MATURITIES
MAY BE MORE COSTLY AS NME FAILS TO CLEAR THESE LEGAL ISSUES

YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE NATIONAL
MEDICAL'S COMMON CLOSED AT 750 OFF 25 CENTS VOLUME OF 51 MILLION SHARES
MADE IT THE BIG BOARD'S MOST ACTIVELY TRADED ISSUE

MARIS ANDERSONS EXECUTIVE VICE PRESIDENT AND TREASURER AT NATIONAL MEDICAL
SAID THE ACTION WAS UNCALLED FOR HE ADDED I THINK IT'S AN UNFORTUNATE
REACTION TO MEDIA COVERAGE I WOULD STRONGLY URGE THEM TO REEXAMINE THE
FINANCIALS

THE HOSPITAL OPERATOR BASED IN SANTA MONICA CALIF IS THE TARGET OF A
BROAD GOVERNMENT INVESTIGATION OF POSSIBLE CRIMINAL MISCONDUCT LAST WEEK
HUNDREDS OF FEDERAL AGENTS RAIDED MORE THAN 20 OF ITS FACILITIES AND SERVED
SEARCH WARRANTS FOR VARIOUS CATEGORIES OF RECORDS AT ITS HOSPITALS

MOODY'S SAID THE RECENT CHANGES IN NATIONAL MEDICAL'S CORPORATE STRUCTURE
AND SENIOR MANAGEMENT DEMONSTRATE THE COMPANY'S EARNEST ATTEMPT TO RESOLVE
ITS LEGAL AND OPERATING PROBLEMS BUT IT SAID THE LITIGATION AND
GOVERNMENTAL INVESTIGATIONS MAY CONTINUE TO DIVERT NME'S MANAGEMENT AND
FINANCIAL RESOURCES FROM FOCUSING ON STRATEGIC INITIATIVES

MOODY'S SAID ITS RATING REVIEW WILL EVALUATE THE IMPACT OF THE LITIGATION
MONITOR THE PROGRESS AND MAGNITUDE OF POSSIBLE LEGAL SETTLEMENTS AND
EVALUATE THE EFFECT ON NATIONAL MEDICAL'S BALANCE SHEET AND LIQUIDITY
9308310093 930831 BUSINESS BRIEF UNIONFED FINANCIAL CORP INVESTORS
AGREE TO PURCHASE 251 MILLION OF COMMON

UNIONFED FINANCIAL CORP BREA CALIF SAID IT OBTAINED COMMITMENTS FROM
VARIOUS INVESTORS TO BUY A TOTAL OF 251 MILLION OF COMMON STOCK IN
CONNECTION WITH ITS RECAPITALIZATION PLAN THE COMPANY SAID IT IS COMMENCING
A RIGHTS OFFERING TO ITS STOCKHOLDERS

IN A BID TO KEEP ITS UNION FEDERAL BANK FROM BEING SEIZED BY REGULATORS THE
COMPANY SAID IT IS SEEKING TO RAISE NET PROCEEDS OF AT LEAST 375 MILLION
IN THE OFFERING ON JUNE 3 THE OFFICE OF THRIFT SUPERVISION INFORMED THE
SAVINGS BANK THAT IT HAD BEEN CLASSIFIED AS CRITICALLY UNDERCAPITALIZED

THE INVESTORS THAT HAVE COMMITTED TO BUY 241 MILLION OF COMMON STOCK
INCLUDE INSTITUTIONS AND HIGHNETWORTH INDIVIDUALS DIRECTORS AND
OFFICERS OF THE COMPANY HAVE COMMITTED TO PURCHASE AN ADDITIONAL 1 MILLION
OF STOCK THE INVESTORS WILL PURCHASE A TOTAL OF 14340000 SHARES AT 175
A SHARE 9308310092 930831 BUSINESS BRIEF BELMORAL MINES LTD 
COMPANY TO BUY RESERVES MERGE WITH BEAU CANADA

BELMORAL MINES LTD SAID IT HAS AGREED TO PURCHASE RESERVES CONTAINING 175
BILLION CUBIC FEET OF NATURAL GAS AND 37 MILLION BARRELS OF OIL FROM
PANCANADIAN PETROLEUM LTD A CALGARY OIL AND GAS CONCERN

TERMS OF THE TRANSACTION WEREN'T DISCLOSED BELMORAL BASED IN TORONTO SAID
IT PLANS TO RAISE 55 MILLION CANADIAN DOLLARS US417 MILLION BY SELLING
SPECIAL WARRANTS AT C230 US174 EACH EACH WARRANT WILL BE EXCHANGEABLE
FOR ONE COMMON SHARE OF BELMORAL AFTER A PLANNED CONSOLIDATION OF
BELMORAL'S SHARES ON THE BASIS OF ONE NEW SHARE FOR 1875 CURRENT SHARES

BELMORAL ALSO SAID IT HAS AGREED TO MERGE WITH BEAU CANADA EXPLORATION LTD
A CALGARY OIL AND GAS CONCERN UNDER THE MERGER AGREEMENT SHAREHOLDERS OF
BELMORAL AND BEAU CANADA WOULD RECEIVE ONE SHARE OF THE MERGED COMPANY FOR
EACH SHARE HELD AFTER THE SHARE CONSOLIDATION BELMORAL PRESIDENT GORDON
STRASSER SAID SHAREHOLDERS WILL VOTE ON THE MERGER IN OCTOBER ON THE
TORONTO STOCK EXCHANGE YESTERDAY BELMORAL SHARES TRADED AT 15 CANADIAN
CENTS AND BEAU SHARES AT C279 BEFORE TRADING IN BOTH STOCKS WAS HALTED FOR
DISSEMINATION OF THE NEWS 9308310091 930831 BUSINESS BRIEF MARRIOTT
CORP MINIMUM TENDER CONDITION IS MET FOR EXCHANGE OFFER

MARRIOTT CORP SAID IT HAS SATISFIED THE MINIMUM TENDER CONDITION FOR ITS
EXCHANGE OFFER FOR PUBLICLY HELD SENIOR NOTES AND DEBENTURES AND HAS
EXTENDED THE EXCHANGE DEADLINE TO 5 PM SEPT 9

IN ADDITION THE COMPANY SAID IT ENTERED INTO AN AGREEMENT WITH A GROUP OF
20 BANKS LED BY CITIBANK FOR A 1 BILLION FIVEYEAR REVOLVING LINE OF
CREDIT TO BE USED BY MARRIOTT INTERNATIONAL INC THE HOTEL MANAGEMENT ARM
THAT WILL EMERGE WHEN MARRIOTT CORP DIVIDES INTO TWO COMPANIES

THE COMPANY SAID IT RECEIVED TENDERS OF ABOUT 12 BILLION OR 88
EXCEEDING THE 85 REQUIREMENT OF THE TENDER OFFER MARRIOTT SAID IT
SURPASSED THE 51 MINIMUM REQUIRED FOR ALL CLASSES OF NOTES AND DEBENTURES
EXCEPT FOR SERIES F AND SERIES I NOTES

MARRIOTT HAS PROPOSED TO CALL THE SERIES F NOTES FOR REDEMPTION AND TO
MODIFY PROVISIONS OF THE SERIES I NOTES TO SECURE THEM EQUALLY WITH THE NEW
NOTES TO BE ISSUED IN THE EXCHANGE 9308310090 930831 ECONOMY OIL
INDUSTRY PROJECTS A SURGE IN OUTLAYS TO MEET US ENVIRONMENTAL STANDARDS
  BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL

THE OIL INDUSTRY WOULD HAVE TO SPEND A MINIMUM OF 166 BILLION OVER A
20YEAR PERIOD TO COMPLY WITH EXISTING AND ANTICIPATED ENVIRONMENTAL
REGULATIONS ACCORDING TO AN INDUSTRY STUDY PRESENTED TO ENERGY SECRETARY
HAZEL O'LEARY YESTERDAY

ON AN ANNUAL BASIS THAT AMOUNTS TO TWICE THE INDUSTRY'S AVERAGE YEARLY
ENVIRONMENTAL EXPENDITURES IN THE SECOND HALF OF THE 1980S ACCORDING TO THE
NATIONAL PETROLEUM COUNCIL AN INDUSTRY ADVISORY COMMITTEE TO THE ENERGY
DEPARTMENT

IT'S A MONUMENTAL NUMBER SAID URBAN STERNFELS PRESIDENT OF THE NATIONAL
PETROLEUM REFINERY ASSOCIATION BASED IN WASHINGTON ADDED LAWRENCE
GOLDSTEIN AN INDUSTRY CONSULTANT AND THAT'S MONEY THE INDUSTRY MUST SPEND
JUST TO STAND STILL NOT TO ADD TO CAPACITY IT'S BECOMING A DEEPPOCKET
GAME WITH ENORMOUS RISK

IT'S WIDELY UNDERSTOOD WITHIN THE INDUSTRY THAT SOME COMPANIES MIGHT CLOSE
REFINERIES OR PORTIONS OF THEM BECAUSE OF RISING ENVIRONMENTAL COSTS

THE ENERGY DEPARTMENT HAD REQUESTED THE STUDY 2 1/2 YEARS AGO IN ORDER TO
EVALUATE WHETHER THE INDUSTRY COULD IMPLEMENT ENVIRONMENTAL AND SAFETY
REGULATIONS MANDATED BY THE FEDERAL GOVERNMENT AND HOW SUCH LAWS MIGHT
AFFECT THE INDUSTRY THE STUDY COVERS THE PERIOD 1991 THROUGH 2010 AND
INCLUDES SPENDING FOR UPGRADES AT US REFINERIES TO COMPLY WITH
REQUIREMENTS RELATED TO AIR WATER WASTE SAFETY AND HEALTH REQUIREMENTS
OVER THAT PERIOD BUT THE REPORT PROJECTS SPENDING ON REFORMULATED GASOLINE
AND OTHER UPGRADES IN PRODUCT QUALITY ONLY THROUGH 2000 BECAUSE MANDATES
REGARDING QUALITY CAN'T BE PREDICTED BEYOND THAT DATE INDUSTRY SOURCES
SAID

ALTHOUGH THE INDUSTRY IS CONCERNED OVER THE SIZE OF THE PROJECTED
EXPENDITURES THE FIRST COMPREHENSIVE ESTIMATE IN SEVERAL YEARS
ENVIRONMENTALISTS INSIST THAT THE MONEY MUST BE SPENT IT'S TOO BAD BUT
THOSE EXPENDITURES HAVE TO BE MADE SAID EDWIN ROTHSCHILD ENERGY POLICY
DIRECTOR FOR CITIZEN ACTION BASED IN WASHINGTON REFINERS HAVE BUSINESSES
THAT POLLUTE

ACCORDING TO THE EXECUTIVE SUMMARY OF THE 2500PAGE REPORT THE INDUSTRY
WILL HAVE TO SPEND 106 BILLION OVER 20 YEARS FOR NEW FACILITIES AND
PROGRAMS AND 46 BILLION TO OPERATE AND MAINTAIN FACILITIES AND PROGRAMS
ALREADY IN PLACE ON TOP OF THAT AMOUNT REFINERS WILL HAVE TO PAY 137
BILLION THROUGH 2000 TO REFORMULATE GASOLINE AND UPGRADE THE QUALITY OF
OTHER PRODUCTS

GASOLINE REFORMULATION ALONE COULD COST THE CONSUMER 159 CENTS A GALLON IN
2000 DEPENDING ON HOW MUCH OF THE COSTS ARE ABSORBED BY THE REFINERIES AND
HOW MUCH MILEAGE MOTORISTS GET OUT OF THE NEW LESS ENERGYEFFICIENT FUEL

AS PART OF ITS CONCLUSIONS THE REPORT SAID THE INDUSTRY WILL BE ABLE TO
MEET REGULATORY REQUIREMENTS AND SATISFY CONSUMER DEMAND DESPITE THE HUGE
INVESTMENTS NECESSARY BUT IT IS BY NO MEANS CERTAIN THAT COMPANIES WILL BE
WILLING AND ABLE TO MAKE THE NECESSARY EXPENDITURES FOR ALL FACILITIES THE
REPORT ADDED

ACCORDING TO WRIGHT KILLEN & CO INDUSTRY CONSULTANTS BASED IN HOUSTON THE
INDUSTRY COULD LOSE 10 OF ITS REFINING CAPACITY OR 15 MILLION BARRELS A
DAY AS A RESULT OF THE REQUIRED PAYOUTS THAT COULD AFFECT 37 OUT OF ABOUT
200 REFINERIES INDUSTRY EXECUTIVES SAY FEWER REFINERIES PROBABLY WOULD
MEAN INCREASED IMPORTS OF OIL PRODUCTS 9308310089 930831 BUSINESS BRIEF
 EASTERN ENTERPRISES IONPURE HOLDER TO SELL UNIT TO US FILTER FOR
24 STAKE

EASTERN ENTERPRISES WESTON MASS SAID IT AGREED TO SELL ITS IONPURE
TECHNOLOGIES CORP UNIT TO US FILTER CORP FOR ABOUT A 24 EQUITY INTEREST
IN US FILTER THE TRANSACTION IS VALUED AT 406 MILLION TO 496 MILLION

IONPURE WHICH HAS ANNUAL REVENUE OF MORE THAN 55 MILLION IS A
WATERPURIFYING SYSTEMS CONCERN US FILTER PALM DESERT CALIF WITH
ANNUAL REVENUE OF MORE THAN 100 MILLION MAKES WASTEWATER TREATMENT
EQUIPMENT

UNDER THE AGREEMENT SUBJECT TO US FILTER SHAREHOLDERS' APPROVAL EASTERN
WOULD RECEIVE 225 MILLION SHARES OF US FILTER COMMON STOCK PLUS A
100000 CASH PAYMENT J ATWOOD IVES EASTERN'S CHAIRMAN AND CHIEF
EXECUTIVE ALSO IS EXPECTED TO BE NAMED TO US FILTER'S BOARD

EASTERN IS A BARGE OPERATOR AND NATURALGAS AND WATERSYSTEMS CONCERN
9308310088 930831 STAYING HOME WITH THE KIDS PAYS OFF  BY CHERYL
JARVIS

I AM TIRED OF READING ABOUT WHAT WOMEN LOSE BY DROPPING OUT OF THE WORK
FORCE TO CARE FOR CHILDREN ONE ESPECIALLY BLEAK NEWSPAPER HEADLINE REVEALED
THAT THE EARNINGS OF DROPOUTS NEVER CATCH UP TO THOSE OF WOMEN WHO WORKED
STRAIGHT THROUGH THEIR CHILDBEARING YEARS OF COURSE THEY LOSE THEY LOSE
CAREER ADVANCEMENT INCOME AND STATUS WHO COULDN'T FIGURE THIS ONE OUT
BUT WHEN THE MEDIA FURTHER REVEAL THAT IF YOU'VE STAYED OUT MORE THAN FIVE
YEARS YOU'RE BASICALLY STARTING FROM SCRATCH I BRISTLE

I DROPPED OUT FULL TIME FOR FIVE YEARS PART TIME FOR ANOTHER FIVE WHEN I
FIRST FACED THIS DECISION 15 YEARS AGO THE ECONOMY WASN'T SO GRIM AND I
WAS FORTUNATE TO HAVE A CHOICE BUT I DIDN'T FULFILL THE MEDIA'S
EXPECTATIONS IN FACT IT WAS AFTER I STAYED HOME WITH MY CHILDREN THAT I
LANDED MY DREAM JOBS IT WAS AFTER I STAYED HOME THAT I PRODUCED A NATIONAL
TV SHOW AND WON THAT JOB WHEN I HADN'T WORKED ONE DAY IN TELEVISION IT WAS
AFTER I STAYED HOME THAT I BECAME FEATURES EDITOR OF A STARTUP METRO DAILY
NEWSPAPER WHEN I HADN'T WORKED ONE DAY IN A NEWSROOM IT WAS AFTER I STAYED
HOME THAT MY BYLINE REACHED A NATIONAL AUDIENCE

SOMETHING MUST HAVE BEEN GOING ON DURING THOSE YEARS AT HOME I'LL TELL YOU
WHAT WAS GOING ON I HAD TIME TO THINK SOMETHING I RARELY DID WHEN I WAS
JUGGLING A FULLTIME JOB AND A SMALL CHILD TIME TO THINK ABOUT WHAT I
REALLY WANTED TO DO WITH MY LIFE ABOUT NEW DIRECTIONS I WANTED TO TAKE
DURING THOSE YEARS I LEARNED TO LIVE WITH INSECURITY AND FEAR MY SKILLS
WOULD ATROPHY NO ONE WOULD EVER HIRE ME AGAIN BUT FOR THE FIRST TIME IN MY
LIFE I BECAME UNAFRAID I LEARNED TO LIVE WITHOUT A CAREER IDENTITY AND
DISCOVERED THAT A SUCCESSFUL LIFE HAS LITTLE TO DO WITH JOB TITLES AND
EVERYTHING TO DO WITH RELATIONSHIPS

WHEN IT CAME TO PURSUING THE JOBS I WANTED I RISKED GOING INTO THE UNKNOWN
WHEN YOU DON'T HAVE A CONVENTIONAL JOB TO LOSE TAKING RISKS IS EASIER AND
I LANDED THE JOBS ON THE STRENGTH OF MY IDEAS IDEAS COME FROM MAKING
CONNECTIONS AND YOU MAKE CONNECTIONS NOT JUST FROM OBSERVING AND READING
BUT FROM LISTENING IT WAS DURING THE YEARS AT HOME THAT I LEARNED TO REALLY
LISTEN ISN'T THAT WHAT PARENTING IS ALL ABOUT

WHEN I RETURNED FULL TIME TO THE WORK FORCE I HAD GREAT RELATIONSHIPS WITH
MY BOSSES UNAFRAID OF LOSING MY JOB BECAUSE I HAD SURVIVED WITHOUT ONE I
SAID WHAT I FELT THEY RESPECTED ME FOR THAT TO THIS DAY I AM IN TOUCH
WITH THEM

WHEN I STOOD IN A NEWSROOM WITH 200 PEOPLE TO HEAR THAT THE NEWSPAPER I WAS
WORKING ON WAS FOLDING THERE WERE MANY TEARS AND MUCH ANGER I WAS SAD BUT
NOT DEVASTATED I HAD BEEN JOBLESS BEFORE I COULD BE AGAIN THERE WAS A
FEELING OF EQUANIMITY THAT REMAINS WITH ME TODAY

WOMEN WHO DROP OUT NO LONGER CONFORM TO SOCIETY'S VIEW OF ACHIEVEMENT SO WE
CREATE NEW DEFINITIONS OF OUR OWN I'VE DONE A LOT IN MY LIFE THAT SOME
PEOPLE MIGHT ENVY I'VE WORKED AT HIGHPROFILE HIGHPAYING JOBS KNOWN
ATHLETIC SUCCESS GRADUATED FROM PRESTIGIOUS SCHOOLS BUT WHEN I THINK OF MY
ACHIEVEMENTS I DON'T THINK OF THESE THINGS I THINK OF MY SONS

I AM IN AWE OF THEM NOT JUST OF THEIR ACCOMPLISHMENTS BUT OF THEIR NATURES
GENEROUS COMPASSIONATE ADVENTUROUS INDEPENDENT IT IS THROUGH RAISING
THEM THAT I BECAME AN ADULT THROUGH RAISING THEM THAT I FORGAVE MY PARENTS
THROUGH RAISING THEM THAT I DISCOVERED WHAT LIFE IS REALLY ABOUT

MOSTLY KIDS ARE THE LUCK OF THE DRAW I KNOW PARENTS WHO I FIND
MATERIALISTIC AND COLD WHOSE KIDS ARE WINNERS I KNOW WONDERFUL GIVING
PEOPLE WHOSE CHILDREN ARE A HEAVY BURDEN FROM THAT PERSPECTIVE I GOT
LUCKY WOULD MY CHILDREN HAVE TURNED OUT THE SAME IF I HADN'T STAYED HOME
MAYBE IT'S SOMETHING I'LL NEVER KNOW BUT I CHOOSE TO THINK I MADE A
DIFFERENCE I CHOOSE TO TAKE SOME CREDIT

WITH CREATIVE THINKING AND AN UPBEAT ATTITUDE WE CAN ALWAYS FIND WAYS TO
USE OUR TALENTS WE CAN ALWAYS ACQUIRE NEW SKILLS BUT THERE ARE NO SECOND
ACTS WHEN IT COMES TO RAISING KIDS WHEN THEY ARE LITTLE WE THINK THEY ARE
GIFTS BUT WHEN THEY GROW UP WE REALIZE THEY WERE ONLY A LOAN

THE COST OF DROPPING OUT OF THE WORK FORCE DEPENDS ON THE VALUE YOU GIVE
YOUR MEMORIES I'VE FOUND THAT THE MEMORIES THAT SUSTAIN ME DURING LIFE'S
BLEAKER MOMENTS ARE NOT OF THE JOBS THAT ARE NO MORE THE MEMORIES THAT
SUSTAIN ME ARE THOSE OF MY SONS I STAYED HOME WITH THEM LESS THAN THE TIME
I WAS IN ELEMENTARY SCHOOL BUT THE MEMORIES OF THOSE YEARS ARE MINE
FOREVER I THINK I GOT A GREAT RETURN ON MY INVESTMENT

MS JARVIS IS A WRITER IN ST LOUIS 9308310087 930831 BUSINESS BRIEF 
RAMSAYHMO INC FLORIDA FIRM PLANS PURCHASE OF MIAMI DADE HEALTH PLANS

RAMSAYHMO INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE MIAMI DADE
HEALTH PLANS A STAFF MODEL HMO WITH ABOUT 20000 MEMBERS IN SOUTH FLORIDA

CLOSELY HELD MIAMI DADE HEALTH PLANS OWNS FOUR MEDICAL CENTERS AND A
MEDICARECERTIFIED HOME HEALTH AGENCY IN FLORIDA RAMSAY SAID IT HOPES TO
COMPLETE THE ACQUISITION IN OCTOBER 9308310086 930831 LETTERS TO THE
EDITOR ENVIRONMENTAL RESPECT IS OUR OPERATING MAXIM

WE ARE WRITING TO EXPRESS OUR TREMENDOUS DISAPPOINTMENT WITH YOUR PAGE ONE
PROFILE OF MAXXAM CEO CHARLES HURWITZ AUG 6 IT IS GROSSLY MISLEADING TO
STATE AS YOUR HEADLINE DID THAT MR HURWITZ REGARDS THE REDWOOD FORESTS AS
JUST ONE MORE DEAL WE ARE COMMITTED TO THE PERPETUITY OF THIS BUSINESS
PLANTING AND NATURAL REFORESTATION FAR EXCEED OUR RATE OF HARVEST WORKING
WITH STATE AND FEDERAL AGENCIES WE HAVE DEVELOPED A SPOTTED OWL MANAGEMENT
PLAN SIMILARLY WE ARE IN THE PROCESS OF DEVELOPING SUCH A PLAN FOR THE
MARBLED MURRELET

WE COOPERATE WITH EVERY RELEVANT AUTHORITY EACH STEP OF THE WAY DURING THE
INCREASINGLY COMPLEX PROCESS OF GAINING APPROVAL TO SELECTIVELY HARVEST OUR
PRIVATELY OWNED LANDS THAT ARE ZONED BY CALIFORNIA EXCLUSIVELY FOR TIMBER
PRODUCTION TAKEN TOGETHER THESE ACTIONS UNDERLINE THE EXTENT TO WHICH WE
GO BOTH TO OBEY ALL APPLICABLE LAWS AND REGULATIONS AND TO COOPERATE WITH
ANYONE WHO SHARES AN ABIDING INTEREST IN THE SUBJECT

THE COMPANY'S FIRST CHOICE IS TO MAKE USE OF ALL OF OUR LANDS FOR THEIR
APPROVED PURPOSE IE TIMBER PRODUCTION HOWEVER IF THE PUBLIC DESIRES TO
PERMANENTLY PRESERVE THE 3000ACRE SALMON CREEK AREA AND A 1500ACRE
BUFFER ZONE THEN HE AND THE COMPANY ARE WILLING TO MAKE THOSE 4500 ACRES
AVAILABLE FOR THAT PURPOSE AS LONG AS THE COMPANY IS COMPENSATED AT FAIR
MARKET VALUE ANY SUCH COMPENSATION WOULD NOT BE A WINDFALL BUT RATHER A
CONSTITUTIONALLY GUARANTEED PAYMENT TO THE COMPANY FOR PROPERTY TO BE TAKEN

MAXXAM UNDER MR HURWITZ'S LEADERSHIP IS ONE OF THE MAJOR CORPORATE
SUCCESS STORIES OF THE PAST DECADE IT HAS REINVESTED FOR THE LONG TERM HAS
STRENGTHENED EACH OF ITS ASSET GROUPS AND HAS ENHANCED SHAREHOLDER VALUE
IT IS A COMPANY THAT HAS GREAT RESPECT FOR THE ENVIRONMENT AND CONDUCTS ITS
OPERATIONS IN A MANNER THAT REFLECTS THAT RESPECT AND RESPONSIBILITY WE
REGRET THAT THESE POINTS EITHER WERE NOT MADE WERE DISTORTED OR WERE
PLAYED DOWN IN YOUR ARTICLE 9308310084 930831 BUSINESS BRIEF 
PROVIDENCE HEALTH CARE INC COMMONWEALTH ASSOCIATES SEEKS OUSTER OF
DIRECTORS

THE FIRM THAT LED THE PUBLIC OFFERING OF PROVIDENCE HEALTH CARE INC SAID IT
INTENDS TO TRY TO REPLACE THE FOURMEMBER BOARD OF THE OHIOBASED
NURSINGHOME OPERATOR

IN A 13D FILING WITH THE SECURITIES AND EXCHANGE COMMISSION COMMONWEALTH
ASSOCIATES OF NEW YORK A MARKETMAKER IN PROVIDENCE STOCK SAID IT IS
DISSATISFIED WITH THE ISSUER'S MANAGEMENT AND DISAPPOINTED WITH ITS
RESULTS COMMONWEALTH SAID IT WILL ATTEMPT TO GET A STOCKHOLDER LIST FILE
A CONSENT STATEMENT WITH THE SEC AND SOLICIT ENOUGH SHAREHOLDERS TO REPLACE
THE FOURMEMBER BOARD WHICH INCLUDES CHAIRMAN LAWRENCE B CUMMINGS AND
THREE OUTSIDE DIRECTORS

COMMONWEALTH WHICH SAID IT HOLDS A 6 STAKE ALSO SAID IT WILL PUSH TO
REDUCE COMPENSATION PAID TO PROVIDENCE OFFICERS AND WILL LOOK AT THE
POSSIBILITY OF A MERGER OR A SALE OF THE COMPANY

A PROVIDENCE SPOKESMAN SAID THE COMPANY HAD NOT SEEN THE 13D FILING AND HAD
NO COMMENT 9308310083 930831 BUSINESS BRIEF BELL CANADA REGULATORS
REJECT REQUEST ON LOCAL TELEPHONE RATES

THE CANADIAN RADIOTELEVISION AND TELECOMMUNICATIONS COMMISSION REJECTED
BELL CANADA'S REQUEST FOR INCREASES IN LOCAL TELEPHONE RATES AND LOWERED THE
UTILITY'S ALLOWABLE RATE OF RETURN

BELL CANADA CANADA'S BIGGEST TELEPHONE UTILITY SAID THE SHORTSIGHTED
DECISION WILL FORCE IT TO REEXAMINE WHAT KIND OF LOCAL SERVICES IT CAN
PROVIDE AND HOW MUCH IT CAN AFFORD TO INVEST

BCE INC BELL CANADA'S PARENT CLOSED AT 3325 OFF 50 CENTS IN COMPOSITE
TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FOLLOWING THE RULING

THE REGULATORY PANEL SAID IT FOUND THAT BELL GENERALLY HAD UNDERESTIMATED
PROJECTED EARNINGS WHILE OVERESTIMATING EXPENSES AND THE IMPACT OF
COMPETITION IN THE COUNTRY'S LONGDISTANCE TELEPHONE MARKET IT SET BELL
CANADA'S ALLOWABLE RETURN ON COMMON EQUITY AT 11 TO 12 DOWN FROM THE
RANGE OF 1225 TO 1325 SET IN 1988 AND LOWER THAN THE 125 TO 135
REQUESTED BY THE COMPANY

THE COMMISSION ALSO DENIED BELL CANADA'S PROPOSAL FOR EXPANDED LOCAL CALLING
AREAS AROUND TORONTO MONTREAL AND OTTAWA THE PROPOSAL WOULD HAVE RAISED
BASIC SERVICE PRICES FOR MOST SUBSCRIBERS IN THOSE REGIONS 9308310081
930831 WORLD MARKETS LATE SPARK IN TOKYO LIFTS STOCKS SOME BOURSES IN
EUROPE RALLY WHILE LONDON TAKES A HOLIDAY  A WALL STREET JOURNAL
NEWS ROUNDUP

TOKYO STOCK PRICES FINISHED HIGHER MONDAY FOLLOWING A RALLY IN THE LAST
HALFHOUR OF TRADING DESPITE A LACK OF FRESH NEWS TO PROMPT BUYING

AMONG BIG EUROPEAN BOURSES FRANKFURT SHARES GAINED ALMOST 1 LED UP BY
BLUE CHIPS PARIS EQUITIES CLIMBED 1 TO THEIR THIRD CONSECUTIVE RECORD
AMSTERDAM STOCKS JUMPED ON OPTIMISM ABOUT INTEREST RATES AND CORPORATE
EARNINGS AND STOCKHOLM ISSUES SOARED TO SUSTAIN A REBOUND THE LONDON
EXCHANGE WAS CLOSED FOR A BANK HOLIDAY

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 11275 UP 023 REFLECTING INCREASES IN AMERICAN AND
ASIA/PACIFIC MARKETS AND A DROP IN EUROPEAN MARKETS

HOME CONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD
INDUSTRY GROUPS CLOSING AT 12253 UP 161 OR 13 WITH SEKISUI CHEMICAL
OF JAPAN POSTING A 33 GAIN IN ITS LOCAL CURRENCY STEEL STOCKS TRAILED AT
11588 DOWN 137 OR 12 WITH ARMCO OF THE US SLIDING 36 IN LOCAL
CURRENCY

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 19992 POINTS FRIDAY
CLIMBED 12101 TO 2091269 NEAR THE DAY'S HIGH OF 2092409 ON TUESDAY THE
NIKKEI ROSE 2450 POINTS TO CLOSE THE MORNING SESSION AT 2093719 MONDAY'S
FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 190 MILLION SHARES DOWN
SHARPLY FROM 3287 MILLION SHARES IN THE PREVIOUS SESSION GAINERS
OUTNUMBERED LOSERS 615332 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL
FIRSTSECTION ISSUES WHICH ROSE 1618 POINTS FRIDAY ADDED 709 TO 167763

TOKYO'S AFTERNOON SESSION BEGAN WEAKLY AS SOME PROFITTAKING SET IN AND
PRESSURED THE NIKKEI DOWN TO ITS INTRADAY LOW OF 2074767 BUT THE MARKET'S
RESILIENCE AT THE LOWER LEVELS PROMPTED SOME BUYING HELPING TO REVERSE THE
NIKKEI'S DROP AND PUSH IT UP JUST BEFORE THE CLOSE

INVESTORS REMAINED EAGER FOR MORE DETAILS ON STEPS THAT PRIME MINISTER
MORIHIRO HOSOKAWA'S GOVERNMENT WILL TAKE TO STIMULATE THE ECONOMY WITH A
HOUSING TAX CUT BELIEVED A POSSIBILITY THE HOUSING SECTOR POSTED GAINS A
REPORT MONDAY THAT JAPAN'S MOTORVEHICLE EXPORTS FELL 14 IN JULY FROM A
YEAR EARLIER HAD LITTLE EFFECT ON THE MARKET NEITHER DID A REPORT THAT
STANDARD & POOR'S CORP WILL REVIEW FOR POSSIBLE DOWNGRADES ITS CREDIT
RATINGS OF JAPAN'S TOP THREE AUTO MAKERS AMID AN INDUSTRY SLUMP AND THE
SHARP APPRECIATION OF THE JAPANESE YEN AGAINST THE US DOLLAR A WEAKER
DOLLAR CUTS INTO THE VALUE OF EXPORTERS' OVERSEAS PROFITS WHEN TRANSLATED
BACK INTO YEN

IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 1729 POINTS TO 192189 NEAR
THE SESSION HIGH OF 192247 BUT ASIDE FROM DEALINGS IN BLUE CHIPS THAT ARE
HEAVILY WEIGHED IN THE INDEX VOLUME WAS EXTREMELY LIGHT RESTRAINED BY THE
LONDON HOLIDAY AND PROBLEMS WITH THE ELECTRONIC TRADING SYSTEM

IN PARIS THE CAC 40 INDEX JUMPED 2179 POINTS TO 220567 FINISHING ABOVE
2200 FOR THE FIRST TIME DESPITE THE MARKET'S RECENT BULL RUN SOME TRADERS
WEREN'T IMPRESSED BY THE MARKET'S PERFORMANCE YESTERDAY NOTING THAT THE
INDEX WAS MOSTLY HELPED LATE IN THE SESSION BY THE EXPIRATION OF OPTIONS
CONTRACTS AND THAT FOREIGN PARTICIPATION WAS MINIMAL OWING TO THE LONDON
EXCHANGE'S HOLIDAY

THE FINANCIAL HOLIDAY IN BRITAIN ALSO DEPRESSED VOLUME IN MILAN WHERE
STOCKS ENDED SLIGHTLY HIGHER BUT IN MADRID TURNOVER WAS STRONG AND SHARE
PRICES CONTINUED THEIR LONG SUMMER RALLY TO FINISH HIGHER HELPED BY MORE
US BUYERS THAN USUAL

IN AMSTERDAM STOCKS ENDED SHARPLY HIGHER BOOSTED BY EXPECTATIONS OF A
FURTHER DECLINE IN DUTCH INTEREST RATES AND BY OPTIMISM ABOUT FIRSTHALF
EARNINGS AT SOME MEDIUMSIZED COMPANIES FINANCIAL ISSUES BENEFITED MOST
FROM THE POTENTIAL FOR A SUSTAINED TREND DOWNWARD IN RATES BUT TRADING WAS
THIN REINED IN BY THE ABSENCE OF BRITISH INVESTORS AND PRICES ROSE MORE
BECAUSE OF AN ABSENCE OF SELLERS RATHER THAN HEAVY BUYING

IN STOCKHOLM SHARES SOARED 17 CONTINUING A RECOVERY FROM A SIXDAY SLIDE
THAT ENDED WITH A 16 ADVANCE FRIDAY THE MARKET WAS SUPPORTED MAINLY BY
DECLINING MONEY MARKET RATES AND A SLIGHT REBOUND FOR THE SWEDISH KRONA IN
CURRENCY DEALINGS WHICH BOOSTED THE BANKING SECTOR IN PARTICULAR AUTO AND
PHARMACEUTICAL COMPANIES ALSO BENEFITED PARTLY BECAUSE THEIR EARNINGS ARE
IMPROVING

IN SYDNEY STOCKS ROSE TAKING THE MAIN INDEX ONCE AGAIN TO A SIXYEAR HIGH
SHARES WERE LIFTED PARTLY BY A HIGHER GOLD PRICE AND A FAVORABLE
INTERPRETATION OF THE REPORT ON AUSTRALIA'S CURRENTACCOUNT DEFICIT WHICH
WIDENED LESS THAN EXPECTED IN JULY FROM JUNE IN SINGAPORE PROFITTAKING
LEFT STOCKS LOWER IN TAIPEI EQUITIES EASED IN EXTREMELY THIN TRADING AS
INVESTORS LOST CONFIDENCE AND MOVED TO THE SIDELINES DESPITE LOOSER
INTEREST RATES POOR ECONOMIC PROSPECTS FOR TAIWAN FOR THE SECOND HALF ARE
WEIGHING THE MARKET DOWN

IN SEOUL AFTER SATURDAY'S SMALL GAIN BROKE A STRING OF FIVE CONSECUTIVE
DECLINES SHARES PLUNGED 27 IN NEARPANIC SELLING SPARKED BY A COMBINATION
OF NEGATIVE FACTORS THE HARDEST BLOW TO THE MARKET WAS A WEEKEND REMARK BY
SOUTH KOREA'S FINANCE MINISTER THAT THE GOVERNMENT WON'T RAISE THE FOREIGN
SHAREOWNERSHIP LIMIT FOR NOW PRICES ALSO WERE HURT BY SPECULATION THAT THE
GOVERNMENT WON'T INCLUDE MARKETBOOSTING MEASURES WHEN IT UNVEILS A
FOLLOWUP PACKAGE TODAY THE MEASURES ARE AIMED AT MINIMIZING ADVERSE
EFFECTS OF THE NEWLY ENFORCED FINANCIAL SYSTEM REQUIRING THE USE OF PROPER
IDENTITIES IN ALL FINANCIAL TRANSACTIONS

IN MEXICO CITY STOCKS FELL SHARPLY ON PROFITTAKING SPARKED BY WEEKEND NEWS
OF POSSIBLE TROUBLE FOR US APPROVAL OF THE NORTH AMERICAN FREE TRADE
AGREEMENT AFTER FURTHER OPPOSITION EMERGED IN CONGRESS PRESIDENT CLINTON
YESTERDAY PREDICTED PASSAGE OF THE ACCORD WITH CANADA AND MEXICO BUT MANY
INVESTORS WEREN'T PERSUADED THE NAFTA IS EXPECTED TO PASS THE SENATE
EASILY BUT FACES A BATTLE IN THE HOUSE THE MEXICAN MARKET WAS RIPE FOR
PROFITTAKING AFTER RECORDING THREE RECORD HIGHS LAST WEEK SPURRED BY
POWERFUL TECHNICAL BUY SIGNALS AN ENCOURAGING OUTLOOK FOR SECONDHALF
GROWTH FALLING INTEREST RATES AND A BETTERTHANEXPECTED TRADE DEFICIT

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
9308310080 930810 HARSH JUDGMENT MANY WELLOFF BLACKS SEE INJUSTICE
AT WORK IN KING DENNY CASES  PERSONAL GAINS DON'T DISPEL LACK OF
FAITH IN SYSTEM IN TWO LOS ANGELES TRIALS  WHY DR MEILLEUR PULLS
OVER  BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET
JOURNAL

NOW THAT WE'VE SEEN THE SENTENCING IN THIS CASE WE'LL HAVE TO SEE HOW THOSE
YOUNG MEN IN THE DENNY TRIAL ARE TREATED

 REV CECIL CHIP MURRAY FIRST AFRICAN METHODIST EPISCOPAL CHURCH OF LOS
ANGELES

LOS ANGELES WHAT IN THE WORLD DO THEY HAVE TO DO WITH EACH OTHER

TWO WHITE LOS ANGELES POLICEMEN WHO BEAT BLACK MOTORIST RODNEY KING WERE
SENTENCED TO 2 1/2 YEARS IN FEDERAL PRISON LAST WEEK MEANWHILE JURY
SELECTION CONTINUES IN THE CASE OF TWO YOUNG BLACK MEN ACCUSED OF BEATING
WHITE TRUCKER REGINALD DENNY DURING THE RIOTING THAT FOLLOWED AN INITIAL
ACQUITTAL OF THE POLICE

THEY ARE VERY DIFFERENT CASES WITH VERY DIFFERENT FACTS AND VERY DIFFERENT
DEFENDANTS BUT IN THE MINDS OF A LARGE NUMBER OF BLACK PEOPLE THE CASES
GIVE SUBSTANCE TO A WIDELY HELD BELIEF THAT THE CRIMINAL JUSTICE SYSTEM IS
MUCH TOUGHER ON BLACKS THAN WHITES AND BECAUSE OF THAT THEY FEEL THE KING
AND DENNY CASES HAVE EVERYTHING IN COMMON

THESE ARE PEOPLE WHO WERE OUTRAGED BY THE SENTENCES GIVEN THE POLICE
OFFICERS BUT NOT SURPRISED SUCH AN OPINION HAS A REMARKABLE BREADTH IN
THE BLACK COMMUNITY INCLUDING AMONG DOCTORS LAWYERS AND OTHER SUCCESSFUL
MIDDLECLASS BLACKS MANY OF WHOM VIVIDLY RECALL THEIR OWN PAST BRUSHES
WITH WHAT THEY SEE AS RACIST LAW ENFORCEMENT

NOW MANY IN THIS CITY FEAR THAT CONVICTIONS AND LONG SENTENCES IN THE DENNY
BEATING CASE MIGHT TEAR ASUNDER A FRAGILE TRUCE THAT HAS KEPT LOS ANGELES
QUIET SINCE THE WORST URBAN RIOTING OF THE CENTURY ERUPTED 15 MONTHS AGO
WHILE NO ONE EXPECTS THE BLACK MIDDLE CLASS TO TAKE TO THE STREETS IT ALSO
IS DOUBTFUL MANY WILL TRY TO TEMPER THE OUTRAGE THAT THEY THEMSELVES SHARE

TAKE JOHN W PATTON A 40YEAROLD SENIOR LITIGATION COUNSEL WITH LITTON
INDUSTRIES INC THE BIG DEFENSE AND TECHNOLOGY COMPANY A HOWARD UNIVERSITY
GRADUATE HE LIVES IN THE EXCLUSIVE RACIALLY MIXED LADERA HEIGHTS AREA OF
LOS ANGELES AND IS WIDELY RESPECTED FOR HIS RESTRAINED VIEWS ON SOCIAL
ISSUES YET WHEN ASKED ABOUT JUSTICE FOR PEOPLE WHO LIKE HIM ARE BLACK HE
SAYS THE CRIMINAL JUSTICE SYSTEM JUST DOESN'T WORK WHEN WE'RE INVOLVED
UNLESS IT'S JUSTICE ON OUR HEADS

THE BESPECTACLED LANKY 6FOOT4 MR PATTON HASN'T ANY GREAT LOVE FOR THE
DEFENDANTS IN THE DENNY CASE THE GUYS I SAW ON THAT VIDEOTAPE WERE
BASICALLY HOODLUMS HE SAYS BUT IF THEY WERE WHITE THEY WOULDN'T BE
CHARGED WITH HALF OF WHAT THEY'RE FACING

MOST OF MR PATTON'S WHITE FRIENDS AND ASSOCIATES HE ACKNOWLEDGES DON'T
THINK OF THE DENNY AND KING CASES AS RELATED THEY DON'T SEE THE POLICE AS
THEIR ENEMY HE SAYS THEY START OFF FROM A PREMISE THAT POLICE OFFICERS
HAVE A TOUGH JOB AND THEY ONLY OCCASIONALLY STEP OUT OF LINE IN SHORT
THEIR REASONING RESEMBLES THAT OF THE SIMI VALLEY JURORS WHO IN APRIL 1992
ACQUITTED SGT STACEY KOON OFFICER LAURENCE POWELL AND TWO OTHER LOS
ANGELES POLICEMEN ON STATE CHARGES OF BEATING MR KING THE ACQUITTAL
SPARKED THREE DAYS OF DEADLY RIOTING HERE

MR PATTON'S VIEW OF THE LAW DESPITE HIS CURRENT SUCCESS MAY FOREVER BE
COLORED BY AN EXPERIENCE HE HAD IN CLEVELAND ABOUT 18 YEARS AGO WHEN HE AND
A FRIEND WERE STOPPED BY THREE POLICE CARS AS THE TWO MEN DROVE DOWN THE
STREET IN AN OLDER AUTO THE OFFICERS LEAPED OUT GUNS DRAWN AND BARKING
INSTRUCTIONS DRIVER PUT YOUR HANDS ON THE WHEEL SAID ONE YOU PUT
YOUR HANDS OUT THE WINDOW ANOTHER SNAPPED AT MR PATTON THE PAIR WAS THEN
ORDERED OUT OF THE CAR AND TOLD TO ASSUME THE POSITION

WHEN WE ASKED WHY THEY'D DONE THIS HE RECALLS THEY SAID IT WAS BECAUSE
ONE OF US WAS SITTING IN THE BACK SEAT AND THAT MADE US LOOK LIKE WE WERE
ABOUT TO COMMIT A ROBBERY

EVEN NOW YEARS LATER MR PATTON BELIEVES THAT MOST POLICE OFFICERS SEE THE
PROFILE OF A POTENTIAL CRIMINAL AS ANY BLACK MALE THERE IS NOTHING TO
PREVENT THAT FROM HAPPENING TO ME NOW HE SAYS ADDING YOU CAN'T EVEN
IMAGINE ALL THE WAYS A BLACK MAN CAN BE KILLED WHERE A WHITE MAN WOULD NOT
EVEN BE AT RISK

MR PATTON HAS ARGUED ON BEHALF OF CLIENTS IN THE COURTROOM OF JUDGE JOHN G
DAVIES THE US DISTRICT JUDGE WHO SENTENCED SGT KOON AND OFFICER POWELL
TO JAIL TERMS CONSIDERABLY SHORTER THAN THOSE OUTLINED BY FEDERAL SENTENCING
GUIDELINES THE JUDGE SAID HIS PRIMARY REASON FOR DEPARTING FROM THE
GUIDELINES WAS THAT MR KING'S CONDUCT CAUSED THE BEATING

THE LITTON ATTORNEY IS OUTRAGED BY THAT NOTION BUT ALSO IS INCREDULOUS THAT
WHITES GIVEN THE RACISM IN AMERICA'S HISTORY WOULD THINK THAT BLACKS OF
ANY ECONOMIC STRIPE WOULD EXPECT FAIRNESS FROM THE JUSTICE SYSTEM MY
FATHER'S FROM TUPELO MISS A PLACE YOU'D HAVE A 15YEAROLD WHITE BOY
CALLING A 70YEAROLD BLACK MAN BOY' AND THE MAN CALLING THE BOY MR' OR
SIR' SO NOW YOU'RE ASKING THAT MAN OR HIS KIDS TO TRUST THIS SYSTEM ASKS
MR PATTON

ON THE OTHER HAND MR PATTON BELIEVES THE REPULSION REFLECTED IN THE WHITE
PUBLIC'S VIEW OF THE DENNY DEFENDANTS DAMIAN FOOTBALL WILLIAMS AND
HENRY KEITH WATSON IS A PRODUCT OF CULTURAL SEPARATION IT'S EASY FOR ME
TO SEE THE HUMAN BEINGS INVOLVED HE SAYS BUT OTHERS MAY HAVE A TOUGH
TIME SEEING THE HUMAN BEINGS HERE THEY COULD BE RELATED TO ME THEY ARE
CONSTANTLY HARASSED BY POLICE AND THEY LIVE IN NEIGHBORHOODS WHERE THERE
ARE NO JOBS NO BANKS THEY SIT AND WAIT IN LINE AT CHECKCASHING PLACES 
PEOPLE LINED UP AROUND THE BLOCK THESE ARE DEHUMANIZING EPISODES AND THESE
PEOPLE LIVE LIKE THIS EVERY DAY OF THEIR LIVES

TO WHITES THIS POINT OF VIEW IS GENERALLY HARD TO UNDERSTAND JOHN E
PRESTON A WHITE 51YEAROLD LITTON ASSOCIATE GENERAL COUNSEL WHO DESCRIBES
MR PATTON AS VERY EVEN VERY CALM IS SURPRISED TO LEARN THAT HIS
COLLEAGUE SEES RACIAL BIAS IN JUDGE DAVIES'S LIGHT SENTENCING OF THE POLICE
OFFICERS I REALLY FELT THE JUDGE WAS TRYING TO DEAL FAIRLY WITH THE
INDIVIDUALS WHO WERE IN FRONT OF HIM MR PRESTON SAYS

ENFORCEMENT STATISTICS ILLUSTRATE SOME JUSTIFICATION FOR THE SENSITIVITY OF
BLACKS IN 1990 FOR EXAMPLE 15 OF ALL DRUG USERS WERE BLACK BUT BLACKS
MADE UP 37 OF ALL DRUG ARRESTS ACCORDING TO MARK MAUER ASSISTANT DIRECTOR
OF THE SENTENCING PROJECT A WASHINGTONBASED RESEARCH GROUP A REPORT BY
THE FEDERAL JUDICIAL CENTER A RESEARCH ARM OF THE FEDERAL COURTS FINDS
THAT BLACKS GET 49 LONGER SENTENCES FOR EQUIVALENT DRUG OFFENSES THAN DO
WHITES AND FEDERAL SENTENCING GUIDELINES LIKE MANY STATE STATUTES SUGGEST
PUNISHMENTS FOR CRACK POSSESSION THAT ARE MUCH MORE SEVERE THAN PENALTIES
RELATED TO POWDERED COCAINE A DRUG OF CHOICE AMONG MIDDLECLASS WHITES
BUT WHILE THE LARGE MAJORITY OF CRACK PROSECUTIONS INVOLVE
AFRICANAMERICANS ONLY MINNESOTA COURTS HAVE FOUND THE SENTENCING DISPARITY
UNCONSTITUTIONAL

I DON'T THINK THERE IS A CONSPIRACY SAYS MR MAUER WHO IS WHITE BUT IF
THERE WERE A CONSPIRACY THE RESULTS WOULD BE VERY SIMILAR TO WHAT WE SEE
NOW

MANY BLACKS FEEL THAT BIAS IN THE CRIMINAL JUSTICE SYSTEM BEGINS WITH THE
COP ON THE BEAT POLICE ARE NOT THERE TO SERVE YOU BUT TO CONTROL YOU
SAYS JERRY ZIEGLER A 30YEAROLD VENTURE CAPITALIST WHO WORKS ON
ECONOMICDEVELOPMENT PROJECTS IN THE LOS ANGELES BLACK COMMUNITY

IT IS DIFFICULT HE SAYS TO SEPARATE THE DENNY AND KING CASES THE DENNY
DEFENDANTS WEREN'T THINKING I HATE DENNY AND I'M GOING TO BEAT HIM MR
ZIEGLER SAYS IT WAS I HATE THE WHITE MAN AND I HATE THE SYSTEM AND I'M
GOING TO TAKE OUT MY RAGE ON THE FIRST THING THAT COMES BY HERE REPRESENTING
THAT SYSTEM' REGINALD DENNY SAYS MR ZIEGLER WHO HAS AN ENGINEERING
DEGREE FROM TUFTS UNIVERSITY AND AN MBA FROM THE UNIVERSITY OF CALIFORNIA
AT BERKELEY IS SUFFERING THE CONSEQUENCES OF THE FRUSTRATION THAT HAS
BUILT UP IN THE BLACK COMMUNITY

LIKE MANY BLACKS IN LOS ANGELES MR ZIEGLER HAS A MENTAL LIST OF
HIGHPROFILE CASES OF UNPUNISHED POLICE BRUTALITY AGAINST FELLOW BLACKS THE
MESSAGE OF THE DENNY AND KING CASES HE SAYS IS THAT IF A GROUP OF BLACK
MEN BEATS A WHITE GUY THE LAW WILL BE ENFORCED TO THE FULLEST EXTENT BUT
IF A GROUP OF UNIFORMED WHITE OFFICERS BEAT A BLACK GUY THERE WILL BE
MITIGATING CIRCUMSTANCES

INITIALLY THE LOCAL DISTRICT ATTORNEY RETURNED A 39COUNT INDICTMENT
AGAINST THE DEFENDANTS INCLUDING ALLEGATIONS OF TORTURE AND GANG
MEMBERSHIP CHARGES THAT HAVE SINCE BEEN DROPPED BUT THE REMAINING
ATTEMPTED PREMEDITATED MURDER CHARGE COULD RESULT IN A LIFE SENTENCE FOR MR
WATSON AND MR WILLIAMS WHO IS FACED WITH THE MURDER COUNT PLUS AGGRAVATED
MAYHEM COULD GET TWO CONCURRENT LIFE TERMS IT IS THUS A VIRTUAL CERTAINTY
THAT IF CONVICTED THE DENNY DEFENDANTS WILL RECEIVE FAR STIFFER SENTENCES
THAN JUDGE DAVIES GAVE TO SGT KOON AND OFFICER POWELL

BLAMING THESE GUYS FOR THE RIOTS IS SO RIDICULOUS IT'S LAUGHABLE SAYS
NANCY J TAYLOR ASSOCIATE DIRECTOR OF BUSINESS AND LEGAL AFFAIRS FOR THE
MCA RECORDS UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO

MS TAYLOR 32 BELIEVES BOTH WHITE AND BLACK AMERICANS ARE SOCIALIZED TO
BELIEVE THAT WHITE LIFE IN A CRIMINAL CASE IS WORTH MORE THAN BLACK LIFE
WHETHER THE WHITE PERSON IS THE DEFENDANT OR THE VICTIM THE LIGHT SENTENCE
FOR SGT KOON AND OFFICER POWELL MAKES ME AFRAID SAYS MS TAYLOR A WOMAN
WITH A NORMALLY SUNNY PERSONALITY MS TAYLOR EXPECTS TO MARRY AND HAVE
CHILDREN LIKE OTHER BLACK WOMEN THOUGH SHE HAS AMASSED SCRAPS OF A KIND
OF POLICE ETIQUETTE TO TEACH TO THE MALE CHILDREN IN HER LIFE INCLUDING
SOME DAY SOON HER FIVEYEAROLD GODSON AMONG THE BITS OF ADVICE DON'T
LOOK TO THE POLICE AS YOUR PROTECTOR AND YOUR FRIEND BECAUSE THEY MAY BE
YOUR ADVERSARY SHE LONGS SHE SAYS FOR A WORLD IN WHICH I WON'T HAVE TO
TEACH MY SONS TO FEAR THE POLICE

AMONG THE WHITE ENTERTAINMENT EXECUTIVES AT MCA MANY SHARED HER OUTRAGE
ABOUT THE POLICE SENTENCES BUT FEW OF THESE COWORKERS SHE SAYS ARE ABLE
TO APPRECIATE HER VIEW THAT THE DENNY DEFENDANTS ARE BEING TREATED MORE
HARSHLY THAN THEY WOULD IF THEY WERE WHITE

VERNON E MCGHEE 48 A BEVERLY HILLS ENTERTAINMENT LAWYER WHO IS BLACK
DOESN'T BELIEVE THERE IS A CONSPIRACY PER SE AGAINST BLACKS IN THE
CRIMINAL JUSTICE SYSTEM BUT WHEN I LOOK AT THE STATISTICS AND THE WAY THE
PENALTIES ARE HANDED OUT UNFAIRLY I'D HAVE TO AGREE WITH THE BROTHERS FROM
THE 'HOOD THAT MAYBE THERE IS A NATIONAL POLICY OR UNDERSTANDING AMONG THE
POWERS THAT BE TO WINK AND LOOK THE OTHER WAY

KEEPING ONE'S PERSPECTIVE OR REMEMBERING WHERE YOU CAME FROM IS A
CONSTANT BURDEN FOR THE BLACK MIDDLE CLASS VIEWED AS SELLOUTS BY MANY IN
THE INNER CITY SOME BLACK PROFESSIONALS SEE INEQUITIES IN THE DENNY AND
KING CASES AS A SIGN THAT THEIR ADVANCEMENT IN SOCIETY MAY BE ILLUSORY AND
THEY ALSO ARE REMINDED OF HOW HARD IT IS EVEN WITH SUCCESS TO HAVE A
PERSONAL IMPACT ON THE ISSUES THEY BELIEVED CAUSED THE RIOTS POVERTY
POLICE OPPRESSION POOR EDUCATION AND HOPELESSNESS

CHRISTOPHER MEILLEUR A 42YEAROLD OBSTETRICIANGYNECOLOGIST WHO DOUBLES AS
A DEPARTMENT CHAIRMAN AT CENTINELA HOSPITAL IN INGLEWOOD CALIF SAW IN
LAST WEEK'S SENTENCING A CHILLING REMINDER OF THE INNOCENT VERDICTS IN THE
FIRST KING BEATING TRIAL WHEN THINGS LIKE THE KING ACQUITTAL AND THE
SENTENCING HAPPEN WHITE AMERICA HAS TO KNOW WHAT IT'S SAYING TO BLACK
YOUTH HE SAYS YOU ARE SAYING THERE IS NO PLACE FOR YOU HERE' WHITE
PEOPLE SHOULD KNOW THEY ARE CREATING THEIR OWN HELL

IT ALSO REMINDS HIM OF HIS OWN REALITY ONE FEW WHITES ARE LIKELY TO
UNDERSTAND EVERY TIME A POLICEMAN GETS IN BACK OF ME DR MEILLEUR SAYS
I LOOK FOR A PARKING LOT OR A STORE TO PULL OFF INTO IT MAY COME FROM
EARLIER DAYS BUT I DO NOT VIEW THE POLICE AS ALLIES I DON'T KNOW ANY BLACK
MEN WHO DO

DR MEILLEUR RECALLS A ROUTINE TRAFFIC STOP ONE HOT SUMMER DAY 10 YEARS AGO
IN NEARBY LONG BEACH POLICE ORDERED HIM OUT OF HIS CAR AND MADE HIM STAND
LEGS SPREAD WITH HIS HANDS ON THE HOOD OF HIS CAR WHILE THEY CHECKED TO SEE
IF THERE WERE ANY OUTSTANDING WARRANTS ON HIM

WHEN HE LIFTED HIS HANDS SLIGHTLY TO RELIEVE THE BURNING FROM THE SWELTERING
HOOD HE SAYS ONE OFFICER BARKED IF YOU DON'T KEEP YOUR HANDS DOWN WE'RE
GOING TO BEAT THE SPROF OUT OF YOU

HIS VOICE FALLS TO A NEAR WHISPER AS HE CONFIDES HIS BELIEF THAT ANY BLACK
MAN IN THIS CITY INCLUDING ME COULD HAVE BEEN IN RODNEY KING'S PLACE
SAYS DR MEILLEUR OF HIS FELLOW BLACK PROFESSIONALS NONE OF US HAS JD OR
MD TATTOOED ON HIS FOREHEAD

THE REV MR MURRAY OF FIRST AME CHURCH WHO HAS FOR YEARS BEEN A VOICE OF
RACIAL TOLERANCE AND UNDERSTANDING IN LOS ANGELES REFLECTED THE VIEWS OF
PARISHIONERS IN A SERMON SUNDAY WE'RE GOING TO BE WATCHING HE SAID
WE'RE GOING TO ASK THAT YOU GIVE THESE BLACK BOYS THE SAME CONSIDERATION
THAT YOU GAVE THE WHITE BOYS SEE RELATED LETTERS LETTERS TO THE EDITOR
KING CASE ISN'T BLACKANDWHITE WSJ AUG 31 1993 9308100144 YY93 MM08
9308310079 930831 LEISURE & ARTS BUSINESS BOOKSHELF SHOPPERS UNDER A
SPELL  BY RON CHERNOW

FOR TURNOFTHECENTURY AMERICANS DEPARTMENT STORES WERE SHIMMERING
MIRACLES OF COLOR GLASS AND LIGHT GRACED WITH GREEK COLUMNS AND TALL
PLATEGLASS WINDOWS BROAD AISLES AND ACRES OF DISPLAY THESE COMMERCIAL
SHRINES ESPOUSED A NEW GOSPEL OF FANTASY DESIRE AND EARTHLY ABUNDANCE AS
WILLIAM LEACH NOTES IN LAND OF DESIRE MERCHANTS POWER AND THE RISE OF A
NEW AMERICAN CULTURE PANTHEON 510 PAGES 30 DEPARTMENT STORES BECAME
FLAGSHIPS OF DOWNTOWN BUSINESS DISTRICTS TRANSFORMING THE SHAPE OF OUR
CITIES

THE ADVENT OF MASS RETAILERS MARKED A RADICAL SHIFT IN ECONOMIC EMPHASIS
FROM HOW GOODS WERE PRODUCED TO HOW THEY WERE PACKAGED AND SOLD WITH THE
TRIUMPH OF MASS PRODUCTION IN THE LATE 19TH CENTURY INDUSTRIALISTS WONDERED
DARKLY WHO WOULD ABSORB THE TIDE OF GOODS THE SOLUTION WAS TO STIMULATE A
CRAVING FOR NEW PRODUCTS TO EXPLOIT FASHION'S FLEETING ALLURE TO MAKE
CONSUMERS RACE ALONG A TREADMILL OF DESIRE AMERICA WAS STILL A PURITANICAL
COUNTRY HOSTILE TO FRILLS AND LUXURIES FORCING RETAILERS TO CONQUER A
DEEPSEATED CULTURAL AVERSION IN THE GILDED AGE WINDOW SHOPPING WAS STILL
THOUGHT FAINTLY VULGAR AND FULLBODIED MANNEQUINS A TRIFLE LEWD FOR DECENT
FOLK DEPARTMENT STORES HAD TO OVERCOME SUCH DATED INHIBITIONS

THOUGH MR LEACH IS NO FAN OF BUSINESS HE SEEMS DISMAYED BY THE
DEVELOPMENTS HE DESCRIBES HIS BOOK STARTS IN A PROMISING WAY A GOOD
WRITER AND THOROUGH RESEARCHER HE HAS SCOURED MANY ARCHIVAL SOURCES HE
CATALOGS THE MECHANICAL TRICKS RANGING FROM REVOLVING DOORS TO ESCALATORS
THAT LUBRICATED THE SUCTIONLIKE RUSH OF CUSTOMERS INTO THE STORES CREATING
THEIR DISTINCTIVE AMBIANCE THROUGH ADVERTISING PUBLICITY AND ARTFUL
DISPLAY STORE EXECUTIVES BECAME IMPRESARIOS OF A NOVEL DREAM CULTURE
HARNESSING FANTASY TO OPEN UP WALLETS

THE LARGER STORES ENLISTED MANY PROMINENT ARTISTS FROM LOUIS TIFFANY TO
MAXFIELD PARRISH TO ENDOW MUNDANE PRODUCTS WITH SYNTHETIC GLAMOUR STAGE
DESIGNERS SUCH AS JOSEPH URBAN AND NORMAN BEL GEDDES WERE RECRUITED FOR
WINDOW TABLEAUX AND EVEN L FRANK BAUM AUTHOR OF THE WONDERFUL WIZARD OF
OZ PROVED A MASTER WINDOW TRIMMER DEPARTMENTSTORE SANTA CLAUSES
ORGANISTS AND HOLIDAY PARADES COMPLETED THE CREATION OF A NEW AESTHETIC TO
LURE THE SHOPPER TO OPEN STILL WIDER THE SPIGOTS OF DESIRE DEPARTMENT
STORES ALSO INTRODUCED CREDIT CARDS INSTALLMENT BUYING LATE HOURS

THE BOOK PIVOTS ON A CONTRADICTION POPULARIZED IN OUR OWN TIME BY JOHN
KENNETH GALBRAITH DANIEL BELL AND OTHERS CAPITALISM REQUIRES PEOPLE TO BE
PIOUS SOULS IN THE WORKPLACE WILD PAGANS AT THE CASH REGISTER ITS
HEDONISTIC SALES CULTURE BOTH SUSTAINS AND MENACES IT MANY EARLY RETAIL
EXECUTIVES SUCH AS JOHN WANAMAKER OF PHILADELPHIA EMBODIED THIS
CONTRADICTION WANAMAKER'S RETAIL EMPIRE THRIVED ON A TASTE FOR LUXURY WHILE
HE ENDOWED PRESBYTERIAN BIBLE SCHOOLS THAT TOUTED OLDTIME VERITIES OF
THRIFT AND HUMILITY THE TENSION BETWEEN THESE TWO CULTURES CAN BE
OVERSTATED IF CONSUMER SOCIETY WERE AS SUBVERSIVE OF TRADITIONAL VALUES AS
MR LEACH CONTENDS ORGANIZED RELIGION WOULD HAVE VANISHED BY NOW INSTEAD
THE US REMAINS BOTH A GODLY COUNTRY AND ONE NOTABLY GLUTTONOUS FOR GOODS

WHILE NOT ENAMORED OF THE HARD SELL MR LEACH ADROITLY DETAILS ITS
MECHANICS GRAVE PROBLEMS SET IN HOWEVER AS HE STRAYS FROM THE NARROW
DOMAIN OF THE DEPARTMENT STORE TO BROADEN HIS FOCUS INTO A SWEEPING
INTEMPERATE INDICTMENT OF MASS CONSUMER SOCIETY HE TACITLY POSITS A
PREINDUSTRIAL PARADISE OF CARING COMMUNITYMINDED PEOPLE WHO MADE THEIR OWN
GOODS AND WEREN'T TAINTED BY MONEY ALL SOCIAL DEVELOPMENTS AFTER THIS HAZY
IDEALIZED PAST SEEM A FALL FROM GRACE IT BECOMES HARD TO PICTURE ANYTHING
BEYOND A SELFSUFFICIENT UTOPIAN COMMUNE OF PEOPLE ENGAGED IN HANDICRAFT
WORK THAT WOULD SATISFY MR LEACH'S RIGOROUS MORAL CRITERIA HE DEEMS ANYONE
EMPLOYED AS AN INTERMEDIARY WHETHER A STOCKBROKER REALESTATE AGENT
PUBLICIST BANKER OR SALESPERSON AS ENGAGED IN WICKED AND WASTEFUL WORK
FOR MR LEACH CAPITAL PROFITS AND MONEY ARE ABIDING CURSES OF OUR
CIVILIZATION

USING A MUSTY MARXIAN MODEL HE PORTRAYS BUSINESS AS THE PRIMARY AGENT OF
SOCIAL CHANGE BASE THAT SUBJUGATES ALL OTHER INSTITUTIONS SUPERSTRUCTURE
TO ITS NEEDS THUS HE TRACES THE VARIOUS INSTITUTIONS UNIVERSITIES
MUSEUMS GOVERNMENT AGENCIES RELIGION EVEN LABOR UNIONS THAT AIDED MASS
CONSUMER CULTURE HARVARD CORNELL AND NEW YORK UNIVERSITIES CREATED NEW
PROGRAMS GENEROUSLY SUBSIDIZED BY RETAILERS TO TRAIN SALES EXECUTIVES
MUSEUMS FURNISHED COSTUMES AS THE BASIS FOR NEW TEXTILE PATTERNS IN MR
LEACH'S VIEW THE MINDCURE MOVEMENT THAT INCLUDED CHRISTIAN SCIENCE AND
THEOSOPHY PRODUCED ROBOTIC DISCIPLES RIPE FOR MANIPULATION BY ADVERTISERS

SPINNING HIS SEAMLESS SIMPLISTIC THEORY MR LEACH LACKS A SENSE OF
PROPORTION IF LOCAL OFFICIALS AGREE TO A ZONING CHANGE FOR A DEPARTMENT
STORE THEY SUDDENLY BECOME SUPINE SERVANTS OF BUSINESS THE DEPARTMENT
STORE BECOMES A BEHEMOTH DEVOURING AMERICA ITS TENTACLES FLAILING
EVERYWHERE BY THE END THE BOOK RESEMBLES AN OLD SCIENCEFICTION MOVIE
EVERYBODY HAS BEEN SEDUCED OR COOPTED BY THE CONSPIRACY WITH EVEN LABOR
SECRETARY ROBERT REICH BERATED FOR INTERJECTING A KIND WORD ABOUT AMERICAN
MULTINATIONAL CORPORATIONS

MR CHERNOW'S HISTORY OF THE WARBURG BANKING FAMILY WILL BE PUBLISHED BY
RANDOM HOUSE IN OCTOBER 9308310078 930831 BUSINESS WORLD CITIZEN
CAPITALISM AND DOOR TO DOOR' EXPORTS  BY TIME W FERGUSON

THE AMAZING WIND BEHIND THE EQUITIES MARKETS BLOWING FROM THE DIRECTION OF
MUTUAL FUNDS HAS THE USUAL FOLKS FRETTING IT'S MUCH ADO OVER LITTLE IN THE
REAL ECONOMY THEY SAY AND THEY MAY BE RIGHT ABOUT A RUDE SURPRISE AHEAD 
FINANCIAL MEASURES DO FLUCTUATE AFTER ALL

BUT THERE'S AN UNDERLYING PHENOMENON HERE THAT GOES BEYOND ANY TULIP CRAZE
AMERICANS ARE SAVING IN UNPRECEDENTED AMOUNTS THROUGH OWNERSHIP OF AMERICAN
BUSINESS AS OF FIRST QUARTER 1993 INDIVIDUALS DIRECTLY OR THROUGH MUTUAL
FUNDS HELD MORE THAN 56 OF THE NATION'S OUTSTANDING PUBLIC EQUITIES
THAT'S ABOUT 28 TRILLION UP FROM 12 TRILLION IN 1980 OR SOMEWHAT
GREATER GROWTH THAN IN THE OVERALL US GDP

IT'S TOO EARLY TO MAKE ANY CLAIMS OF A CALVINIST REVOLUTION WEALTHBUILDING
MAY NOT BE SPEEDING UP BUT SIMPLY TAKING NEW DIRECTIONS IN THE PAST
AMERICANS PUT MONEY IN CDS AND DOWN PAYMENTS NOW WITH INTEREST RATES
FLATTENED AND REALESTATE APPRECIATION THE GAME OF BOTTOM FISHERS THE
PUBLIC GOES LOOKING FOR ASSETS THAT GROW THE OLDFASHIONED WAY

NOT EVERYTHING'S SUBLIME AN INCREASINGLY ONEROUS ALTERNATIVE MINIMUM TAX
CHEWS UP CAPITAL GAINS INCENTIVES HOWEVER SIGNS FROM SILICON VALLEY
SUGGEST VENTURE FUNDING IS COMING BACK THANKS TO THE LURE OF PAYOFFS FROM A
STRONG IPO MARKET THE HIGHYIELD BOND MARKET THAT SO HELPED MCCAW CELLULAR
IS BACK BUT MAINLY DOING REFINANCINGS AND NOT THE REVOLUTIONARY STUFF THAT
WAS POLITICALLY PURGED A FEW YEARS AGO AND THE HIGHER AND RETROACTIVE
PERSONALINCOME LEVIES BY WHICH PRESIDENT CLINTON SEEKS TO UNDO THE 1980S
THREATEN TO SHUT OFF ANOTHER AVENUE OF RAPID ADVANCEMENT THE S CORPORATION

EVEN IF NOT ALL PROSPERITY STEMS FROM THE PUBLIC MARKETS THE VIRTUALLY
WORLDWIDE BOOM IN EQUITIES CAN COVER A MULTITUDE OF SHORTS IN THE US
MUTUAL FUNDS AND DISCOUNT BROKERAGES HAVE MADE INVESTING SO ENTICING AND
SIMPLE THAT IN MOST MIDDLECLASS ENVIRONS IT'S A RARE PERSON WHO'S NOT
CONVERSANT WITH THE MARKET INDIVIDUALIZED RETIREMENT PLANS MEAN THAT EVEN
THOSE WHOSE ONLY SAVING IS DONE THROUGH AN EMPLOYER NOW HAVE REASON TO TAKE
CHARGE PERSONALLY OF THEIR HOLDINGS SURE THERE'S SOME PERIL IN THAT BUT
ALSO AN EDUCATION IN THE WAY CAPITALISM WORKS

IT'S HARD NOT TO THINK OF THIS WHEN LISTENING TO SOMEONE LIKE JERRY BROWN ON
THE HUSTINGS AGAINST FREE TRADE YOU SEE THE OUTRE DEMOCRAT'S PROTECTIONIST
PITCH BUILDS FROM JOBS TO ENVIRONATIONALISM AS OPPOSED TO PAT BUCHANAN'S
CULTURAL NATIONALISM TO THE IDEA THAT THE STATELESS INTERESTS OF PAPER
WEALTH RULE THE GLOBE FINANCIAL ASSET HOLDERS HERE AND AROUND THE WORLD ARE
ENJOYING A GILDED AGE HE SAYS AS THE REAL WAGES OF WORKING STIFFS
EVERYWHERE PETER INTO POVERTY AS THEIR SURROUNDINGS ARE POISONED IT'S AN
INTERNATIONAL COLORINGBOOK VERSION OF THE LINE PEDDLED SUCCESSFULLY IN THE
US LAST YEAR BY TWO PHILADELPHIA INQUIRER WRITERS

COMING AT A TIME OF RAMPANT AND RUDE ECONOMIC DISLOCATION THIS SORT OF
MESSAGE AT LEAST FROM THE RIGHT MESSENGER WAS SOMETHING TO WORRY ABOUT
IN AN EARLIER DAY BUT SO MANY OF THE PEOPLE THAT A WOULDBE POPULIST SUCH
AS JERRY BROWN NEEDS TO REACH NOW HOLD THOSE VERY SAME ASSETS AND KNOW THEY
DO BECAUSE THEY GET A STATEMENT BREAKING THEM DOWN EVERY MONTH OR QUARTER
THAT THE CLASS ENTREATY FALLS A LITTLE FLAT

THAT'S NOT MEANT TO BE SMUG MILLIONS OF AMERICANS AND MANY MORE AROUND THE
GLOBE ARE NOT SAVERS STILL THEY SIMPLY DON'T HAVE THE RESIDUAL INCOME OR
THEY HAVEN'T BEEN ACCULTURATED IN THE NOTION THAT NOT EVERY PENNY MADE NEED
BE SPENT ALSO GREAT NUMBERS DO NOT HAVE ACCESS TO SEED CAPITAL FROM WHICH
THEY CAN TURN THEIR FORTUNES AROUND AT LEAST THROUGH LEGAL MEANS

SO TODAY'S CITIZEN CAPITALISM CANNOT ADDRESS EVERY NEED BUT IT IS A GOOD
START ON REPLACING INDULGENCE WITH FRUGALITY UNDER THE EMERGING ORDER NO
ONE IS PROMISED HE WILL BE RICHER AT THE CLOSE OF BUSINESS TODAY BUT
COLLECTIVELY WE CAN EXPECT A HANDSOME PAYOFF DOWN THE LINESTAR

BE NO LESS GLAD THAT ASIA IS CONSUMING AND FROM A FAVORED AMERICAN FORM OF
ENTERPRISE ARRESTS THIS SUMMER IN SOUTH KOREA OF DOORTODOOR SALES
OFFICIALS FOR TWO USBASED COMPANIES HIGHLIGHT A BURGEONING MARKET

THE DETENTION OF THE SEVEN REPRESENTATIVES OF AMWAY CORP OF MICHIGAN AND
SUNRIDER INTERNATIONAL OF CALIFORNIA WHICH WAS ENDED BY PRESSURE FROM THE
US EMBASSY CAME AFTER A PHENOMENAL RISE IN THIS SALES ACTIVITY IN KOREA
PARTICULARLY ACCORDING TO THE WORLD FEDERATION OF DIRECT SELLING
ASSOCIATIONS BASED IN WASHINGTON THE DIRECTSELLING VOLUME IN THAT COUNTRY
ROSE TO ABOUT 1 BILLION IN 1992 FROM AN UNREPORTED AND PRESUMABLY TINY
AMOUNT IN 1990 KOREA WAS SAID TO HAVE MORE THAN 100000 SALESPEOPLE IN THE
BUSINESS BY LAST YEAR

OTHER ASIAN HOT SPOTS ACCORDING TO THAT SURVEY WERE HONG KONG WITH SALES
UP 200 IN THE TWO YEARS JAPAN WHICH NEARLY DOUBLED TO 34 BILLION AND
THE PHILIPPINES MALAYSIA AND THAILAND ALL OF WHICH ROSE BY MORE THAN 50
IN TAIWAN THE SALES FORCE WAS SAID TO HAVE EXPANDED BY FIVE TIMES TO
500000 ELSEWHERE IN THE WORLD ONLY ARGENTINA AND CHILE RECORDED SIMILAR
RATES OF SALES GROWTH

AMWAY IS A FAMOUS NAME IN THE PERSONALCARE AND HOUSEHOLD PRODUCTS BUSINESS
AND IS STILL CONTROVERSIAL IN SOME CIRCLES FOR THE PYRAMID APPEARANCE OF
ITS SALES HIERARCHY THAT WAS BELIEVED TO BE THE BASIS OF THE KOREAN
ARRESTS BUT AMWAY'S GOODS SEEM TO WEAR WELL WITH CONSUMERS BOTH IN THE
US AND ABROAD SALES IN JAPAN WHERE IT IS THE EIGHTH LARGEST FOREIGN
COMPANY REPORTEDLY NEARED 1 BILLION LAST YEAR THE CLOSELY HELD COMPANY
MAY HAVE 400000 DISTRIBUTORS IN INDONESIA WITHIN THREE YEARS AND FOR ITS
PUSH IN CHINA IT IS CONSTRUCTING A 29 MILLION PLANT AT CANTON

SUNRIDER AN HERBALPRODUCTS COMPANY FOUNDED BY A TAIWANBORN PHARMACIST IN
1982 HAS JUST MOVED INTO A NEW 35 MILLION HEADQUARTERS NEAR THE PORT OF
LOS ANGELES THE 650 EMPLOYEES THERE AND AT THE SUNRIDER MANUFACTURING
FACILITY 20 MILES AWAY REPRESENT ONE BRIGHT SPOT AMID SOUTHERN CALIFORNIA'S
BAD RECESSION

SUNRIDER ESTIMATES ITS ASIAN SALES WILL GROW ABOUT 50 TO 171 MILLION
THIS YEARABOUT HALF ITS TOTAL VOLUME A TRIPLING OF BUSINESS IN KOREA HEADS
THE LIST

NOT ALL DIRECTSELLING EMANATES FROM THE US BUT ONE JAPANESE PLAYER THE
NATURALCOSMETICS MAKER NOEVIR CO CHOSE TO BASE ITS INTERNATIONAL BUSINESS
DEVELOPMENT OFFICE IN NEW YORK

SO FAR NEIGHBORLY BUSINESS HAS ATTRACTED LITTLE OF THE NOTICE GIVEN TO
OTHER AREAS OF INTERNATIONAL TRADE BUT AT 63 BILLION ANNUALLY AND RISING
IT WILL PROBABLY SOON BE TOO SIGNIFICANT TO IGNORE MARKETING IS ONE OF THE
US'S MOST VALUABLE EXPORTS IF RELATIONS ARE NOT FOULED BY DISPUTES OVER
MORE POLITICALLY CONNECTED TRADE THE AWAKENING ASIAN MARKET MIGHT BE OPEN
TO SOME OTHER ARRESTING IDEAS 9308310077 930831 EXXON MOBIL JOIN
ALLIANCE TO BID ON CHINA PROSPECTS

EXXON CORP OF IRVING TEXAS AND MOBIL CORP OF FAIRFAX VA SAID THEY
HAVE AGREED WITH THREE OTHER OIL COMPANIES TO FORM A CONSORTIUM TO BID ON
EXPLORATION PROSPECTS IN CHINA

THE GROUP WHICH ALSO INCLUDES BRITISH GAS EXPLORATION & PRODUCTION LTD
JAPAN'S SUMITOMO CORP AND INDONESIA PETROLEUM LTD WILL BE EVALUATING FIVE
PROSPECTS IN THE TARIM BASIN LOCATED IN XINJIANG PROVINCE IN WESTERN CHINA
BASED ON GEOLOGICAL EVIDENCE TARIM BASIN IS CONSIDERED AMONG THE WORLD'S
MOST PROMISING DEVELOPMENT PROSPECTS

THE CONSORTIUM IS EXPECTED TO COMPETE AGAINST SEVERAL OTHER GROUPS OF
INTERNATIONAL OIL COMPANIES THAT HAVE EXPRESSED INTENTIONS TO PARTICIPATE IN
THE TENDER CLOSING OCT 31

TARIM BASIN IS NOT AN ESTABLISHED OIL AND GAS PRODUCING FIELD AND NO OTHER
FOREIGN COMPANIES ARE OPERATING THERE YET AN EXXON SPOKESMAN SAID EXXON
HAS CONDUCTED EXPLORATION OFFSHORE CHINA BUT CURRENTLY HAS NO PRODUCTION IN
CHINA HE SAID 9308310076 930831 LETTERS TO THE EDITOR MIDDLE CLASS
GETS WET WHEN RICH ARE SOAKED

YOUR AUG 11 CAPITAL JOURNAL COLUMN BUDGET PACKAGE FAILS TO RESOLVE DEFICIT
IN TRUST MAY BE PATENTLY RIGHT THAT THE SOCALLED DEFICIT REDUCTION PLAN
WHICH ITSELF IS A LIE OR AT LEAST MISNOMER DOES NOT SIGNIFICANTLY RAISE
INCOME TAXES ON THE MIDDLE CLASS BUT I BELIEVE YOU FAIL TO UNDERSTAND THE
PUBLIC'S OVERWHELMING BELIEF THAT THE MIDDLE CLASS WILL BEAR THE BRUNT OF
THE TAX INCREASES

THE PUBLIC'S BELIEF IS ROOTED IN A BASIC UNDERSTANDING OF ECONOMICS IT IS
UNDENIABLE THAT THESE TAX INCREASES WILL BE PASSED ON TO THE AVERAGE
CONSUMER THAT IS TO THE MIDDLE CLASS THE WEALTHY ON WHOM THESE HIGHER
TAXES WERE RETROACTIVELY UNCONSTITUTIONALLY HEAPED ARE BY AND LARGE
EMPLOYERS OR THE SENIOR MANAGEMENT OF EMPLOYERS TO RECOUP THEIR COLLECTIVE
LOST EARNINGS WILL NOT PRICES BE RAISED ALMOST CERTAINLY THE ANSWER IS
YES

THE PRACTICAL EFFECT OF THIS TAX INCREASE AS MOST HARDWORKING MIDDLE
CLASS AMERICANS KNOW IS THAT THEY WILL BEAR THE BRUNT OF THE TAX INCREASE
INDIRECTLY IF NOT DIRECTLY LIKEWISE MIDDLE AMERICA KNOWS THAT THESE TAX
INCREASES WILL REDUCE EMPLOYMENT NOT INCREASE EMPLOYMENT CONSEQUENTLY WHO
REJOICES THAT THEIR EMPLOYER JUST GOT SLAPPED WITH A WHOPPING TAX BILL
KNOWING ALL THE WHILE THAT IT MAY COST THEM THEIR OWN JOB NOBODY WHO
UNDERSTANDS ECONOMICS

THE PUBLIC IS TRYING TO TELL WASHINGTON THAT CLASS WARFARE HAS TO END THE
PUBLIC UNDERSTANDS REGARDLESS OF WHAT THE PRESIDENT SAYS THAT SOAKING THE
RICH HAS NEVER PRODUCED A VIBRANT ECONOMY AND IT WON'T NOW 9308310075
930831 HEARD ON THE STREET IN A FAMILIAR REFRAIN BROKERAGE HOUSES URGE 
US INVESTORS TO CHECK OUT MEXICAN STOCKS  BY WILLIAM POWER STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK WALL STREET IS GETTING HOT FOR MEXICO AGAIN BUT INVESTORS MIGHT
NOT BE QUITE SO PASSIONATE THIS TIME

LAST WEEK PAINEWEBBER PUT TELEFONOS DE MEXICO OR TELMEX ON ITS FOCUS LIST
OF STOCKS IT'S PUSHING HARDEST GOLDMAN SACHS REITERATED ITS UPBEAT VIEW OF
THE WHOLE MEXICAN MARKET CITING ITS ATTRACTIVE VALUATIONS AND THE NEW
SMITH BARNEY SHEARSON URGED INVESTORS IN A SPECIAL REPORT TO OVERWEIGHT
THE MEXICO MARKET IN THEIR PORTFOLIOS

MEANWHILE WALL STREET PLANS SEVERAL NEW MEXICAN STOCK ISSUES TO TAKE
ADVANTAGE OF ANY RENEWED APPETITE FOR MEXICO AMONG US INVESTORS WHILE IT
CAN THESE INCLUDE BEAR STEARNS'S OFFERING EXPECTED IN COMING WEEKS OF
COCACOLA FEMSA A SOFTDRINK BOTTLER 30OWNED BY COCACOLA CO

IT IS TIME SAYS SMITH BARNEY SHEARSON FOR INVESTORS TO REFOCUS
ATTENTION SOUTH OF THE BORDER

YOU MAY HAVE HEARD ALL THIS BEFORE THERE WAS A TIME LAST YEAR WHEN EVERY
BROKER WITH A PHONE WAS RECOMMENDING TELMEX THE HUGE MEXICO CITY TELEPHONE
COMPANY AND THE MEXICAN STOCK MARKET WAS STREAKING LIKE A ROCKET BUT THAT
CHANGED ABRUPTLY WHEN MEXICAN SHARES PLUNGED LAST SUMMER PARTLY REFLECTING
CONCERN OVER PROSPECTS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT

BUT NOW WITH MEMORIES OF LAST SUMMER'S PLUNGE STILL FRESH FOR MANY
INVESTORS WALL STREET HAS REDISCOVERED MEXICAN SHARES AND THEIR RELATIVELY
CHEAP PRICES THE MEXICAN MARKET EVEN AFTER RECOVERING FROM LAST SUMMER'S
PLUNGE IS TRADING AT ONLY 12 TIMES TRAILING EARNINGS ABOUT HALF THE
VALUATION OF STANDARD & POOR'S 500STOCK INDEX IN THE US

EVEN BULLS ON MEXICO WARN THAT INVESTORS CAN EXPECT VOLATILITY IN THE
COUNTRY'S SHARES MOSTLY TIED TO WHAT THE US CONGRESS DOES REGARDING THE
TRADE AGREEMENT THE MEXICAN STOCK MARKET DROPPED 16 YESTERDAY A DAY
AFTER AN ATTACK ON NAFTA BY REP DAVID BONIOR OF MICHIGAN THE NO 3 RANKING
DEMOCRAT IN THE HOUSE

INVESTORS HATE BEING AT THE MERCY OF POLITICIANS' WHIMS THE FATE OF MEXICAN
SHARES IS TIED SO CLOSE TO WASHINGTON IT'S RIDICULOUS IN THE SHORT RUN
EXPECT THE MARKET TO BOUNCE ALL OVER THE PLACE SAYS GLENN CARLSON A
MANAGING DIRECTOR AT BRANDES INVESTMENT PARTNERS SAN DIEGO BUT DESPITE THE
VOLATILITY VALUEORIENTED BRANDES HAS ABOUT 11 OF THE 1 BILLION IT
MANAGES FOR INSTITUTIONS AND WEALTHY INVESTORS INVESTED IN MEXICAN SHARES

EVERYONE'S VIEW ON MEXICO EXCEPT OURS HAS TO DO WITH NAFTA WE DISAGREE
SAYS MR CARLSON WE THINK MEXICO IN AND OF ITSELF REPRESENTS A GOOD STORY
THE SALINAS GOVERNMENT HAS DONE EVERYTHING RIGHT IN TERMS OF PROPER ECONOMIC
POLICIES  WORLDWIDE MEXICO IS ONE OF THE CHEAPEST STOCK MARKETS IN
THE WORLD

MR CARLSON SAYS BRANDES HAS BEEN BUYING TELMEX AND IS THINKING OF BUYING
TRANSPORTACION MARITIMA MEXICANA IF IT GETS JUST A LITTLE CHEAPER

FRANCISCO CHEVEZ SMITH BARNEY SHEARSON'S ANALYST FOR MEXICAN STOCKS SAYS
MEXICO'S ECONOMY IS LOOKING BETTER AND BETTER REGARDLESS OF NAFTA'S FATE
THE FIRM'S STOCK PICKS BANKS BANACCI AND BANCOMER CEMEX RETAILER CIFRA
GRUPO CARSO TELMEX AND CONSORCIO G GRUPO DINA BRANDES INVESTMENT JUST
SOLD OUT OF CEMEX EARNINGS WILL BE HURT BY ITS ACQUISITION OF SPANISH
CEMENT COMPANIES SAYS MR CARLSON

BECAUSE MANY OF THESE STOCKS TRADE WITH RESTRICTIONS IN THE US
OVERTHECOUNTER MARKET INDIVIDUALS OFTEN PREFER BUYING THROUGH PUBLICLY
TRADED COUNTRY FUNDS MEXICO FUND ON THE BIG BOARD CONSISTS OF NEARLY
50 OF THE SEVEN STOCKS RECOMMENDED BY SMITH BARNEY SHEARSON THERE'S ALSO
MEXICO EQUITY & INCOME FUND AND EMERGING MEXICO FUND

IN CONTRAST TO OTHER COUNTRY FUNDS TRADING AT AN AVERAGE 4 PREMIUM TO THE
VALUE OF THEIR ACTUAL STOCKHOLDINGS THE MEXICO FUNDS ARE AT OR NEAR
DISCOUNTS IF NAFTA GOES THROUGH THERE'S A DECENT UPSIDE TO MEXICO FUNDS
SAYS MICHAEL PORTER OF SMITH BARNEY SHEARSON

A WARNING ON MEXICO FUND IT PLANS A RIGHTS OFFERING OF 93 MILLION
ADDITIONAL SHARES SUCH OFFERINGS TEND TO DEPRESS THE PRICE OF ALREADY
EXISTING SHARES AS INVESTORS DISCOVERD PAINFULLY LAST YEAR WHEN THE FUND
DID A SIMILAR OFFERING

BUT NOT EVERYONE HAS WARMED TO MEXICO VALUE INVESTOR SCOTT BLACK OF DELPHI
MANAGEMENT IN BOSTON SAYS I DON'T BUY ANYTHING IN MEXICO BECAUSE IT
DOESN'T FIT HIS RULE THAT ANY COUNTRY IN WHICH HE INVESTS MUST HAVE AN
INDIGENOUS WORK ETHIC 9308310074 930831 REVIEW & OUTLOOK EDITORIAL 
CIVIL RIGHTS THE NEXT GENERATION

THE CIVIL RIGHTS MARCH IN WASHINGTON OVER THE WEEKEND COMMEMORATING THE
30TH ANNIVERSARY OF MARTIN LUTHER KING'S I HAVE A DREAM SPEECH MAY HAVE
BEEN SPARSELY ATTENDED 75000 ACCORDING TO THE PARK POLICE BUT IT MAY YET
BE REMEMBERED AS ANOTHER IMPORTANT TURNING POINT IN THE HISTORY OF BLACK
AMERICANS

WHEN THE PIONEERS OF THE CIVIL RIGHTS MOVEMENT CONVENED IN WASHINGTON 30
YEARS AGO RACIAL SEGREGATION WAS STILL LAW IN MUCH OF THE SOUTH BLACKS IN
MANY PLACES LACKED BASIC OR EFFECTIVE POLITICAL RIGHTS IN DEMANDING FEDERAL
LEGISLATION THE LEADERS OF THE CIVIL RIGHTS MOVEMENT WERE ASKING FOR
NOTHING MORE THAN EQUAL TREATMENT UNDER THE LAW WITH PASSAGE OF THE CIVIL
RIGHTS ACT OF 1964 THE VOTING RIGHTS ACT OF 1965 AND THE FAIR HOUSING ACT
OF 1968 THEIR MOST IMPORTANT GOALS WERE MET AND THE LEGAL BARRIERS TO
EQUALITY WERE ABOLISHED IN THE TIME SINCE CIVIL RIGHTS LEADERS HAVE
ADMONISHED AMERICANS TO HONOR AND OBEY THOSE LAWS

THE RESULTS HAVE BEEN IMPRESSIVE TODAY ONE IN THREE BLACKS IN METROPOLITAN
AREAS LIVE IN THE SUBURBS NEARLY 40 OF BLACK HOUSEHOLDS HAVE INCOMES OVER
25000 AND THE MEDIAN HOUSEHOLD INCOME FOR BLACK FAMILIES IN WHICH HUSBAND
AND WIFE WORK FULLTIME IS A HEFTY 49265 IRONICALLY THE DETAILS OF THIS
ACHIEVEMENT WHAT FOR MANY BLACKS IS VERY SIMPLY SUCCESS WAS HARDLY
EVIDENT IN THE WORDS OF THOSE WHO SPOKE AT THE LINCOLN MEMORIAL SATURDAY

JOHN JACOB OF THE NATIONAL URBAN LEAGUE REPEATED HIS CALL FOR 50 BILLION IN
ANNUAL SPENDING ON A DOMESTIC MARSHALL PLAN BEN CHAVIS THE NEW EXECUTIVE
DIRECTOR OF THE NAACP DECLARED THAT WE WANT MORE THAN FAIR TREATMENT WE
WANT A FAIR SHARE OF THE ECONOMY

HOW MUCH MORE APPEALING AND FORWARDLOOKING IT WOULD HAVE BEEN HAD MESSRS
JACOB AND CHAVIS SHARED THE PODIUM AND TV TIME WITH SOMEONE SUCH AS JOHN
JOHNSON THE FOUNDER OWNER AND PUBLISHER OF EBONY MAGAZINE WHOSE BUSINESS
OPERATIONS NETTED 275 MILLION LAST YEAR OR EVEN HARLEM CONGRESSMAN CHARLES
RANGEL WHO HAS BEEN NEGOTIATING WITH CONSERVATIVE REPUBLICAN SENATOR
MALCOLM WALLOP ABOUT CUTTING THE CAPITAL GAINS TAX RATE BLACK ENTREPRENEURS
HAVE NEVER FIGURED VERY PROMINENTLY IN THE PUBLIC FACE OF THE CIVIL RIGHTS
MOVEMENT AN OVERSIGHT THAT MIGHT HAVE BEEN UNDERSTANDABLE BACK WHEN
LEGISLATIVE GOALS WERE PARAMOUNT BUT TODAY THE OMISSION OF COMMERCIALLY
SUCCESSFUL BLACK MEN AND WOMEN AT SUCH EVENTS IS HARD NOT TO NOTICE

FOR NOW THE LEADERSHIP FOR SOME REASON HAS CHOSEN TO MAKE LEAGUE INSTEAD
WITH UP TO 500 DISPARATE GROUPS FROM VARIOUS PUBLICINTEREST LOBBIES AND
WHILE NAFTA WASN'T EXPLICITLY OPPOSED BY THE ORGANIZING COMMITTEE SOME OF
THE WEEKEND'S PURPORTEDLY ECONOMIC SPEECHES SOUNDED MORE LIKE ECHOES OF THE
CRABBY PEROT AND BUCHANAN BRIGADES

THERE WAS QUITE PROPERLY A GREAT DEAL OF TALK HEARD ABOUT THE INNERCITY
PLIGHT OF MANY YOUNG BLACK MEN AND WOMEN BUT WHY AT THIS STAGE IS IT NOT
POSSIBLE TO SAY MORE ABOUT THE PLIGHT OF THE BLACK FAMILY BACK IN 1890 80
OF BLACK FAMILIES WITH CHILDREN WERE HEADED BY MARRIED COUPLES A CENTURY
LATER THE PERCENTAGE IS DOWN TO 39 THE DIRECTION OF THIS TREND AMONG
WHITES IS HARDLY CAUSE FOR CHEER BUT ONE OF THE FEW CONSENSUS VIEWS
IDENTIFIABLE IN OUR POLITICS TODAY IS THAT THE CONDITION OF THE AMERICAN
FAMILY HAD BETTER TURN BACK TOWARD COHESION AND FAST THIS IS A PROBLEM
DYING FOR LEADERSHIP OF ANY RACE

PERHAPS AS THE BEN CHAVISES AND LANI GUINIERS OF THE WORLD BELIEVE THERE
ARE STILL POCKETS OF BIGOTRY AND RESISTANCE RESIDING IN THE PSYCHES OF SOME
AMERICANS BUT A LARGE AND DIVERSE NATION IS INEVITABLY GOING TO HARBOR
RESENTMENTS OF VARIOUS SORTS THAT PROBABLY FALL BEYOND THE RESTORATIVE
POWERS OF LEGISLATURES OR COURTS THE PROFESSIONAL MIDDLECLASS BLACKS NOW
MAKING THEIR WAY INTO AMERICA'S SUBURBS ARE UNDOUBTEDLY GOING TO DISCOVER
BOTH THE BENEFITS AND THE SLIGHTS EXPERIENCED BY THE ITALIANS IRISH JEWS
AND OTHERS WHO PUSHED IN BEFORE THEM BUT THEY'VE ARRIVED TO STAY

NOTWITHSTANDING THE COMPLAINTS HEARD THIS WEEKEND IN WASHINGTON THE TREND
IS UPWARD AND IT IS ULTIMATELY IRREVERSIBLE WHAT THE CAUSE OF BLACK
AMERICANS NEEDS MOST NOW IS A GENERATION OF LEADERS WHO RECOGNIZE THAT THE
SUCCESS OF THOSE STILL STRUGGLING DEPENDS CRUCIALLY ON A VIBRANT ECONOMY
RESPECT FOR THE RULE OF LAW AND A FUNCTIONING EDUCATIONAL SYSTEM THAT IN
TURN REQUIRES A RENEWED REVERENCE FOR HARD WORK INDIVIDUAL RESPONSIBILITY
AND STABLE FAMILIES

IT'S WORTH NOTING THAT BLACK WRITERS AND INTELLECTUALS ALREADY HAVE THESE
SUBJECTS WELL DEVELOPED BUT THE PENALTIES IN TERMS OF OSTRACISM CAN STILL
BE HIGH FOR THEM OR THE BLACK POLITICIANS WHO TRY TO PRESS THESE IDEAS WE
SUSPECT THOUGH THAT THE MOMENTUM OF THE TIMES IS TRAVELING IN THEIR
DIRECTION IF INDEED THE NEXT GENERATION OF CIVIL RIGHTS LEADERS CAN OFFER A
VISION GROUNDED IN PERSONAL AND ECONOMIC GROWTH THEIR CELEBRATION 30 YEARS
FROM NOW IS LIKELY TO HAVE A CONSTITUENCY THAT FINALLY TRANSCENDS RACE
9308310073 930811 POLITICS & POLICY CAPITAL JOURNAL  BY GERALD
F SEIB

AMID THEIR UNDERSTANDABLE FEELINGS OF SATISFACTION OVER WINNING A VICTORY
FOR THEIR ECONOMIC PLAN IN CONGRESS PRESIDENT CLINTON AND HIS TEAM SHOULD
FIND ONE LINGERING PROBLEM PARTICULARLY WORRISOME

THAT PROBLEM IS THE PRESIDENT'S CREDIBILITY GAP

PLAINLY PUT LOTS OF PEOPLE DIDN'T BELIEVE WHAT MR CLINTON TOLD THEM ABOUT
THE DEFICITREDUCTION PLAN THIS AMOUNTS TO A KIND OF DEFICIT IN PUBLIC
TRUST WHICH IS AN ENORMOUS PROBLEM FOR A PRESIDENT AND ONE THAT TRANSCENDS
ANY SINGLE ISSUE

THE PROBLEM IS ONLY PARTLY OF MR CLINTON'S OWN MAKING THE CREDIBILITY GAP
ALSO IS A PRODUCT OF THE BREATHTAKING CYNICISM ABOUT ALL POLITICIANS IT
ONCE SEEMED IMPOSSIBLE FOR PUBLIC CYNICISM TO SURPASS THE LEVELS REACHED IN
LAST YEAR'S CAMPAIGN BUT IT ACTUALLY SEEMS TO BE GROWING

CYNICISM RUNS SO DEEP THAT MANY PEOPLE NOW SEEM TO VIEW POLITICIANS AS A
KIND OF REVERSE INDICATOR OF THE TRUTH IF A POLITICIAN SAYS IT'S BLACK IT
MUST BE WHITE THE PROBLEM IS BECOMING CORROSIVE AND UNHEALTHY IT MAY WELL
TURN OUT TO BE THE HEAVIEST BURDEN MR CLINTON CARRIES THROUGH HIS
PRESIDENCY

TO GET SOME IDEA OF HOW SERIOUS THIS PROBLEM IS LOOK AT HOW UNSUCCESSFUL
MR CLINTON WAS IN CONVINCING PEOPLE OF THE MOST FUNDAMENTAL TENET OF HIS
ECONOMIC PLAN THAT ITS TAX INCREASES FALL OVERWHELMINGLY ON THE WEALTHIEST
PEOPLE NO MATTER WHAT ELSE ONE MAY THINK OF THE DEMOCRATS'
DEFICITREDUCTION PLAN IT IS INDISPUTABLE THAT THE OVERWHELMING SHARE OF
ITS TAXES FALL ON UPPERINCOME PEOPLE THAT WAS TRUE IN THE BEGINNING AND
IT BECAME FAR MORE TRUE ONCE THE PRESIDENT'S ENERGY TAX WAS KILLED

YET PEOPLE SIMPLY DON'T BELIEVE IT AND MR CLINTON MADE ONLY A DENT IN
THEIR OPINIONS BY STATING HIS CASE OVER AND OVER AGAIN WHEN THE WALL STREET
JOURNAL AND NBC NEWS CONDUCTED A POLL ABOUT A WEEK BEFORE MR CLINTON WENT
ON NATIONAL TELEVISION TO URGE PASSAGE OF HIS PLAN PEOPLE WERE ASKED
WHETHER THE BIGGER SHARE OF TAXES WOULD BE PAID BY UPPERINCOME OR
MIDDLECLASS PEOPLE A HUGE 78 SAID THE MIDDLE CLASS

A WEEK LATER IMMEDIATELY AFTER MR CLINTON GAVE A NATIONAL ADDRESS IN WHICH
HE MUSTERED HIS BEST ARGUMENTS AND SNAPPIEST CHARTS TO REFUTE THAT
IMPRESSION CABLE NEWS NETWORK AND USA TODAY CONDUCTED A POLL AND ASKED THE
SAME QUESTION THIS TIME 68 OF THOSE SURVEYED STILL SAID THE MIDDLE CLASS
WOULD PAY THE MOST TAXES

THREE FACTORS APPEAR RESPONSIBLE FOR THIS PHENOMENON TWO OF THEM PASSING
AND ONE REPRESENTING A MORE FUNDAMENTAL PROBLEM THE FIRST IS THAT THE
CLINTON ECONOMIC PLAN WAS THE SUBJECT OF INTENSE PARTISAN CRITICISM SOME OF
IT MISLEADING THAT'S PAR FOR THE COURSE IN SUCH DEBATES DEMOCRATS HAVE
USED PLENTY OF MISLEADING RHETORIC OF THEIR OWN BUT IN THIS CASE THE
ATTACKS CAME NOT ONLY FROM THE EXPECTED REPUBLICAN QUARTERS BUT ALSO FROM
ROSS PEROT AND HIS ORGANIZATION IF YOU LOOK AT BILL CLINTON HE'S HAD TO
FIGHT A TWOFRONT WAR SAYS DEMOCRATIC POLLSTER PETER HART

THE SECOND FACTOR WAS THE WHITE HOUSE'S POOR JOB IN SUSTAINING ITS SALES
PITCH FOR THE CLINTON PROGRAM A FAILING THAT CREATED A FERTILE FIELD FOR
MISPERCEPTIONS TO SPROUT MR CLINTON'S OWN ADVISERS NOW CONCLUDE THAT THEY
DID A TERRIFIC JOB OF SELLING THE PRESIDENT'S ECONOMIC BLUEPRINT FOR ABOUT
TWO WEEKS AFTER IT WAS RELEASED IN FEBRUARY AND THEN DROPPED THE BALL BY
THE TIME MR CLINTON RESUMED TRYING TO GET HIS MESSAGE ACROSS MANY PEOPLE
ALREADY HAD HEARD AND COME TO BELIEVE THE WORST

THE THIRD AND MOST TROUBLING FACTOR HAS BEEN THE RELUCTANCE OF PEOPLE TO
BELIEVE MR CLINTON ONCE HE GOT HIS MESSAGE THROUGH CLEARLY IT STEMS IN
PART FROM THE HEAVY BAGGAGE MR CLINTON ACCUMULATED ON HIS JOURNEY TO
WASHINGTON CREDIBILITY BECAME AN ISSUE FOR HIM BACK IN THE PRESIDENTIAL
CAMPAIGN BECAUSE OF THE WELLTRODDEN QUESTIONS ABOUT HIS PERSONAL LIFE AND
MILITARY DRAFT RECORD DOUBTS WERE EXACERBATED EARLY ON WHEN HE VEERED AWAY
FROM CAMPAIGN PLEDGES ON MIDDLECLASS TAX CUTS AND HAITIAN REFUGEES

BUT THOSE WOULD BE MANAGEABLE PROBLEMS IF MR CLINTON WEREN'T OPERATING IN
SUCH A SOUR ENVIRONMENT WHO CAN GAUGE HOW MUCH CYNICISM TOWARD ALL
POLITICIANS WAS SOWN WHEN PRESIDENT BUSH BROKE HIS NONEWTAXES PLEDGE AND
HOW MUCH DOES THAT CYNICISM GROW EVERY TIME MR PEROT APPEARS ON TELEVISION
AND DELIVERS THE MESSAGE IMPLICITLY OR EXPLICITLY THAT NOBODY BUT HE IS
TELLING THE TRUTH

MR CLINTON PROBABLY CAN'T FIND ANY QUICK FIX RETURNING NOW TO SOME OF THE
MORE CENTRIST THEMES HE RAN ONWELFARE REFORM IS A GOOD EXAMPLE WOULD
HELP WITH SOME VOTERS VICE PRESIDENT AL GORE'S COMING PROPOSALS TO
REINVENT GOVERNMENT TO MAKE IT WORK BETTER COULD WHITTLE DOWN THE CYNICISM
A LITTLE TOO BUT WHATEVER THE TACTIC MR CLINTON WILL NEED TO REFILL THE
RESERVOIR OF CREDIBILITY AS HE TRIES TO SELL HIS AMBITIOUS AGENDA OF HEALTH
AND WELFARE REFORM AND TRADE AGREEMENTS SEE RELATED LETTER LETTERS TO
THE EDITOR MIDDLE CLASS GETS WET WHEN RICH ARE SOAKED WSJ AUG 31
1993 9308110092 YY93 MM08 9308310072 930831 SEVEN COLLEGES TO RECEIVE 
BONNER FOUNDATION GIFT

PRINCETON NJ THE CORELLA AND BERTRAM F BONNER FOUNDATION ANNOUNCED A
357 MILLION GIFT TO SEVEN COLLEGES AND UNIVERSITIES TO PERMANENTLY ENDOW
THE BONNER SCHOLARS PROGRAM

THE SEVEN INSTITUTIONS ARE BERRY COLLEGE ROME GA CONCORD COLLEGE
ATHENS WVA DAVIDSON COLLEGE DAVIDSON NC DEPAUW UNIVERSITY
GREENCASTLE IND EMORY & HENRY COLLEGE EMORY VA SPELMAN COLLEGE
ATLANTA AND THE UNIVERSITY OF RICHMOND RICHMOND VA

THE BONNER FOUNDATION'S GIFT WILL PERMANENTLY ENDOW 80 TO 100 BONNER
SCHOLARSHIPS AT EACH SCHOOL RESULTING IN 580 PERPETUAL SCHOLARSHIPS EACH
SCHOOL WILL MATCH THE FOUNDATION'S GIFT BY RAISING AT LEAST 1 MILLION

THE FOUNDATION WAS ESTABLISHED IN 1981 BY BERTRAM F BONNER A REAL ESTATE
DEVELOPER WHO DIED THIS YEAR HIS WIFE CORELLA LIVES IN PRINCETON AND IS A
COMMUNITY VOLUNTEER

THE SCHOLARS PROGRAM BEGUN IN 1990 AWARDS 3700 SCHOLARSHIPS TO STUDENTS
WHO HAVE BEEN ACTIVE CITIZENS IN THE COMMUNITY AND COULDN'T AFFORD COLLEGE
OTHERWISE 9308310071 930831 BEYOND THE COLD WAR FOREIGN POLICY IN THE
21ST CENTURY CHEER UP TROUBLED WORLD  BY HENRY S ROWEN

AMID WIDESPREAD GLOOM ABOUT THE WESTERN ECONOMIES ETHNIC AND RELIGIOUS
CONFLICTS IN THE BALKANS CAUCASUS AND MIDDLE EAST POLITICAL CONFUSION IN
RUSSIA TERRORIST BOMBS AND A NUCLEAR THREAT FROM NORTH KOREA PROFOUNDLY
POSITIVE THINGS ARE HAPPENING IN MANY LESS DEVELOPED COUNTRIES

IN BRIEF WITHIN A GENERATION FROM TODAY MOST OF THE WORLD'S PEOPLES WHO ARE
NOT ALREADY RICH ARE LIKELY TO BE SO OR CLOSE TO IT BEING RICH HERE MEANS
LIVING IN A COUNTRY WITH AN AVERAGE ANNUAL PERCAPITA OUTPUT OF AT LEAST
8000 IN 1990 PURCHASING POWER PARITY VALUES OR PPP THE WORLD BANK'S
CURRENT THRESHOLD FOR AN UPPER INCOME COUNTRY TWO LARGE CONSEQUENCES WILL
FOLLOW A RICH WORLD WILL BE A MORE DEMOCRATIC ONE AND MIGHT BE MORE A
PEACEFUL ONE

THE TWO PROXIMATE CAUSES ARE THE DEATH OF SOCIALISM AND THE EXTRAORDINARY
GROWTH UNDER WAY IN EAST ASIA SOCIALISM'S DEMISE REMOVES THE IDEOLOGICAL
BASIS FOR DESTRUCTIVE FORMS OF STATE INTERVENTION ALL CAPITALIST SYSTEMS
EVEN HONG KONG MODESTLY ARE ACTUALLY WELFARE STATES THE BASIC MODES OF
PRODUCTION AND DISTRIBUTION ARE PRIVATE BUT GOVERNMENTS REGULATE MUCH
PRIVATE ACTIVITY AND REDISTRIBUTE INCOME HOWEVER WHEN THE ROLE OF THE
STATE BECOMES TOO LARGE ESPECIALLY IF IT IS MARKETHOSTILE GROWTH
SUFFERS AS DEMONSTRATED IN EUROPE AND THE US AS WELL AS IN POOR
COUNTRIES

IN EAST ASIA AVERAGE PERCAPITA GROWTH OVER THE PAST 30 YEARS HAS BEEN AN
UNPRECEDENTED 5 A YEAR WITH ONEFOURTH OF THE WORLD'S POPULATION THAT
REGION'S PERFORMANCE IS OF GLOBAL SIGNIFICANCE IT ALSO SHOWS THAT YOU DON'T
HAVE TO BE WHITE OR JAPANESE TO ASPIRE RATIONALLY TO WEALTH

WHY ARE THERE STILL POOR COUNTRIES ONE REASON IS THAT THEIR GOVERNMENTS
PERSIST IN BAD POLICIES UNSTABLE PRICES AND EMPLOYMENT DOMESTIC PRICES
MISALIGNED WITH WORLD ONES NATIONALIZED INDUSTRIES AUTARKY THAT LIMITS
TRADE AND ACCESS TO CAPITAL AND TECHNOLOGY AND DISINCENTIVES TO SAVINGS
INVESTMENT WORK AND ENTREPRENEURSHIP

NOW SUCH ERRORS ARE WIDELY BEING ABANDONED FOR INSTANCE IN 198590 ABOUT
130 STATEOWNED ENTERPRISES WERE SOLD EVERY YEAR EXCLUDING THOSE IN EAST
GERMANY THAT SUCH POLICIES ARE NOW SEEN AS DESTRUCTIVE DOES NOT QUICKLY
ELIMINATE THE OLD POVERTYSUSTAINING WAYS OF DOING THINGS WITNESS THE
RUSSIAN PARLIAMENT'S EFFORTS TO HOLD BACK THE TIDE OF CHANGE NONETHELESS
PROMARKET POLICIES ARE CHANGING INCENTIVES IN CHINA MUCH BUSINESS ACTIVITY
INVOLVES OFFICIALS AND THEIR FAMILIES AND IN RUSSIA MANY OLDLINE
PARTOCRATS ARE GRABBING SHARES IN COMPANIES THEY ARE EXPLOITING THEIR
POLITICAL POSITIONS BUT THEY ARE ALSO PARTICIPATING IN THE SHIFT TO
CAPITALISM

THE SECOND MAIN BARRIER IS WEAK SOCIAL CAPABILITIES WEALTH CREATION IS MADE
EASIER BY STABLE RULES GOVERNING SOCIETY PREDICTABLE AND FAIR APPLICATION
OF LAWS PROPERTY RIGHTS A SKILLED WORK FORCE COMPETENT GOVERNMENT AND
BUSINESS ORGANIZATIONS LOW BARRIERS TO SETTING UP NEW BUSINESSES AND
SOCIAL MOBILITY COUNTRIES VARY GREATLY IN THESE RESPECTS BUT SKILLS
ESPECIALLY ARE GROWING

THE ACCOMPANYING TABLE SHOWS A WORLD GROWTH PROJECTION TO 2020 ASSUMING THAT
TODAY'S NONRICH COUNTRIES PERSIST IN GROWTHPROMOTING POLICIES AND THAT
THEIR PERFORMANCE WILL BE LIMITED LARGELY BY SOCIAL CAPABILITIES THE
CURRENTLY NONRICH WORLD WILL PROBABLY AVERAGE PERCAPITA GROWTH OF ABOUT 3
A YEAR IN PPP UNITS WITH EAST AND SOUTH ASIA LATIN AMERICA AND MOST OF
CENTRAL AND EASTERN EUROPE DOING BETTER THAN THIS AND SUBSAHARAN AFRICA AND
THE CORE OF THE ISLAMIC WORLD DOING WORSE TODAY'S DEVELOPED COUNTRIES WILL
ALSO GROW SLOWLY

THIS PROJECTION BREAKS WITH THE PAST WHICH SAW NO OVERALL CONVERGENCE IN
INCOMES BETWEEN RICH AND POOR COUNTRIES BOTH AVERAGED 2 TO 25 PERCAPITA
GROWTH LOOKING AHEAD TODAY'S RICH COUNTRIES WILL SEE THEIR SHARE OF WORLD
OUTPUT FALL TO ABOUT 40 IN 2020 FROM 60 IN 1990 THE US SHARE FALLS TO
17 FROM ABOUT 24

THIS PROJECTION MIGHT BE OFF THE MARK NOT ONLY BECAUSE BAD POLICIES MAY
PERSIST IN THE NONRICH COUNTRIES AND SOCIAL INCAPACITIES MAY BE MORE OF A
DRAG THAN I ASSUME BUT ALSO BECAUSE OF WARS TRADE BARRIERS AND ENERGY AND
ENVIRONMENTAL CONSTRAINTS EVEN SO THESE POSSIBLE SHOWSTOPPERS SEEM
UNLIKELY TO PREVENT SOMETHING LIKE THIS FUTURE COMING TO PASS

WHAT ARE THE IMPLICATIONS FOR DEMOCRACY THE PROBABILITY IS 08 THAT A
RANDOMLY SELECTED RICH COUNTRY IS JUDGED FREE RATHER THAN PARTLY FREE
OR NOT FREE IN THE FREEDOM HOUSE RATING SYSTEM FOR CIVIL LIBERTIES AND
POLITICAL RIGHTS IN RECENT DECADES SEVERAL NATIONS HAVE BECOME POLITICALLY
MORE PLURALISTIC AS THEY HAVE BECOME WEALTHIER NOTABLY SOUTH KOREA TAIWAN
CHILE MEXICO AND TURKEY THERE ARE GOOD REASONS FOR THIS AS PEOPLE ACQUIRE
PROPERTY MORE EDUCATION AND A LEVEL OF LIVING BEYOND SUBSISTENCE THEY HAVE
MORE CHOICES THE COERCIVE POWER OF GOVERNMENT IS CONSTRAINED ALTHOUGH
GOVERNMENT IS NEEDED TO ENFORCE THE RULES

OF COURSE MANY POOR COUNTRIES ARE ALSO DEMOCRATIC INDIA COSTA RICA
URUGUAY AND BOTSWANA AMONG THEM BUT PROSPERITY PROVIDES THE ONLY SECURE
BASIS FOR DEMOCRACY BAD POLICIES AND SOCIAL INCAPACITIES CAN PREVENT
PROSPERITY BUT CAPITALISM IS NECESSARY FOR DEMOCRACY

THAT SEVERAL INITIALLY AUTHORITARIAN GOVERNMENTS HAVE DONE WELL HAS LED TO
SUGGESTIONS THAT SUCH A SYSTEM IS NEEDED TO OVERCOME RESISTANCE TO NEEDED
CHANGES BUT THAT WASN'T THE WEST'S EXPERIENCE AS IT GREW RICH AND THE
STORY ON AUTHORITARIAN VS DEMOCRATIC POLITICS IN RELATION TO GROWTH IN
OUR ERA ISN'T THAT SIMPLE THE AUTHORITARIAN SUCCESSES MAINLY SHOW THAT WITH
THE RIGHT POLICIES AND ADEQUATE SOCIAL CAPABILITY IT HELPS TO HAVE POLITICS
THAT PERMIT THEIR CONSISTENT PURSUIT

HARVARD POLITICAL SCIENTIST SAMUEL HUNTINGTON OBSERVES THAT DEMOCRACY HAS
ADVANCED IN WAVES FROM THE EARLY 19TH CENTURY EACH WAVE FOLLOWED BY
REVERSALS AND NEW GAINS HAPPILY EACH REVERSAL DID NOT UNDO ALL PREVIOUS
GAINS THE NET NUMBER OF DEMOCRACIES WENT FROM ZERO BEFORE 1828 TO 59 IN
1990 HE IDENTIFIES AN ECONOMIC TRANSITION ZONE TO DEMOCRACY AS COUNTRIES
GROW IN WEALTH TODAY ONLY BRAZIL SOUTH KOREA AND BANGLADESH OF THE 15
MOST POPULOUS NONRICH COUNTRIES ARE COUNTED AS POLITICALLY FREE BUT IN
THE NEXT GENERATION 12 LOOK LIKELY TO BE IN THAT ZONE ASSUMING
OPTIMISTICALLY NO BACKSLIDING FROM CURRENT DEMOCRATIC STATUS COUNTRIES
WITH APPROXIMATELY 85 OF TODAY'S WORLD POPULATION SHOULD BE IN THE ZONE FOR
DEMOCRACY BY 2020

AND WHAT ARE THE IMPLICATIONS FOR PEACE THERE IS A LONG RECORD OF WRITINGS
TO THE EFFECT THAT COMMERCE PROMOTES PEACE BUT OVER THE CENTURIES AS
REPUBLICAN FORMS OF GOVERNMENT REPLACED MONARCHIES AND WORLD TRADE
BURGEONED TERRIBLE WARS CAME THOSE TODAY WHO ASSERT THAT MILITARY
COMPETITION IS NOW REPLACED BY ECONOMIC COMPETITION ECHO THESE MISTAKEN
PREDICTIONS

THE GROWTH OF COMMERCE HAS BEEN A POOR LEADING INDICATOR OF PEACE AND THE
GROWTH OF DEMOCRACY HAS BEEN A GOOD ONE ALTHOUGH NOT IN A SIMPLE WAY
POLITICAL SCIENTISTS RJ RUMMEL OF THE UNIVERSITY OF HAWAII AND MICHAEL
DOYLE OF JOHNS HOPKINS UNIVERSITY FIND THAT NO DEMOCRACY HAS EVER WAGED WAR
AGAINST ANOTHER DEMOCRACY A CLAIM THAT OBVIOUSLY RESTS ON THE DEFINITION OF
DEMOCRACY

MR DOYLE CREDITS KANT WITH THE KEY REPUBLICS REST ON THE CONSENT OF
CITIZENS THIS INDUCES PRUDENCE BUT NOT ABHORRENCE OF WAR FOUGHT FOR
LIBERAL PURPOSES LIBERAL STATES TEND TO BE MORALLY INTEGRATED AND FREE
SPEECH AND COMMUNICATIONS YIELD A MORE ACCURATE PERCEPTION OF FOREIGN
PEOPLES AND THEIR POLITICS AND LEADS TO UNDERSTANDING AND RESPECT BUT
BECAUSE NONLIBERAL GOVERNMENTS ARE IN A STATE OF AGGRESSION WITH THEIR OWN
PEOPLE THEIR RELATIONS WITH LIBERAL STATES ARE SUSPECT IN SHORT
DEMOCRACIES HAVE DOMESTIC CONSTRAINTS ARE CAUTIOUS ABOUT CONQUEST AND
SHARE MANY VALUES WITH OTHER DEMOCRACIES

OF COURSE DEMOCRACIES HAVE HAD MANY WARS THE WORST IN THIS CENTURY WERE
CAUSED BY NONDEMOCRATIC STATES NOT OPPOSED STRONGLY ENOUGH BY DEMOCRATIC
ONES A WORLD WITH A MIXTURE OF THESE TWO TYPES OF SOCIETIES IS NOT A SAFE
PLACE BUT TROUBLES TEND TO BE CONCENTRATED GEOGRAPICALLY THE LARGEST ZONE
OF INSTABILITY STRETCHES FROM MOROCCO TO CENTRAL ASIA WITH EXTENSIONS INTO
THE BALKANS AND SOUTH THROUGH AFRICA THERE ARE OTHERS ACTUAL AND
POTENTIAL RUSSIA IS ALREADY BULLYING SEVERAL OF ITS NEIGHBORS AND CHINA
HAS A TRADITION OF HEGEMONY AND HAS BORDER GRIEVANCES CONCERNING UNEQUAL
TREATIES SOME COUNTRIES CHINA INDIA MAY GET RICH WELL BEFORE THEY
BECOME PACIFIC MANY DEMOCRATIC OR NOT WILL BECOME MILITARILY POWERFUL

BUT THERE ARE ALSO MAJOR ZONES OF PEACE NOTABLY NORTH AMERICA WESTERN
EUROPE AND SOUTH AMERICA MORE SUCH ZONES WILL LIKELY EMERGE AS THE WORLD
BECOMES RICHER AND MORE DEMOCRATIC

TERRIBLE THINGS WILL STILL HAPPEN BUT WEALTHCREATING FORCES WILL PROBABLY
DOMINATE POVERTYSUSTAINING ONES FOR MORE OF THE WORLD'S PEOPLES AND SHOULD
HAVE WIDELY BENEFICIAL POLITICAL CONSEQUENCES

MR ROWEN IS A PROFESSOR AT THE STANFORD BUSINESS SCHOOL AND A FELLOW AT THE
HOOVER INSTITUTION 9308310070 930831 INTERNATIONAL BRIEF MIM
HOLDINGS LTD METALS MINING CONCERN SAYS OPERATING PROFIT FELL 30

BRISBANE AUSTRALIA MIM HOLDINGS LTD A METALS MINING COMPANY
REPORTED OPERATING PROFIT AFTER TAX FELL 30 TO 74 MILLION AUSTRALIAN
DOLLARS US4921 MILLION IN THE YEAR ENDED JUNE 27 FROM A1063 MILLION A
YEAR EARLIER

MIM SAID EARNINGS WERE HIT BY THE SLUMP IN WORLD METALS PRICES AND A
NUMBER OF ABNORMAL OR UNUSUAL LOSSES PROFIT AFTER TAX BUT BEFORE ABNORMAL
ITEMS AND FOREIGN EXCHANGE ITEMS DECLINED JUST 22 TO A851 MILLION FROM A
YEAREARLIER A870 MILLION

THE COMPANY SAID A A100 MILLION COSTCUTTING PROGRAM IMPLEMENTED IN RECENT
YEARS HAS ENABLED IT TO PARTIALLY COUNTER THE EFFECTS OF LOWER METALS
PRICES HOWEVER MIM SAID FURTHER PRODUCTIVITY GAINS ARE NEEDED AND A
SMALLER WORK FORCE IS ENVISAGED 9308310069 930831 ECONOMY IMPORTS IN
SECOND QUARTER WIDENED US TRADE GAP

WASHINGTON RECORD IMPORTS IN THE SECOND QUARTER HELPED WIDEN THE US
MERCHANDISE TRADE DEFICIT TO ITS LARGEST IN MORE THAN FIVE YEARS ON A
BALANCEOFPAYMENTS BASIS

THE COMMERCE DEPARTMENT PUT THE SECONDQUARTER TRADE GAP AT A SEASONALLY
ADJUSTED 3439 BILLION COMPARED WITH 2931 BILLION IN THE FIRST QUARTER
THE LAST TIME THE DEFICIT WAS LARGER BY THIS MEASURE WAS IN THE FOURTH
QUARTER OF 1987 WHEN IT REACHED 413 BILLION

THE FIGURES ARE BASED ON ADJUSTMENTS TO MERCHANDISE TRADE DATA POSTED
MONTHLY BY THE CENSUS BUREAU THE REPORT REFLECTS LATER DATA AND MAKES
ADJUSTMENTS FOR INLAND FREIGHT CHARGES INTERNAL GOLD TRANSFERS AND AN
EXCLUSION OF MILITARY GOODS AND SERVICES

IMPORTS INCREASED 46 IN THE SECOND QUARTER TO A RECORD 14751 BILLION
AFTER RISING 06 IN THE PREVIOUS QUARTER TO AN ADJUSTED 14084 BILLION
EXPORTS IN THE SECOND QUARTER INCREASED 14 TO A SEASONALLY ADJUSTED
11313 BILLION AFTER FALLING 22 IN THE PREVIOUS QUARTER TO AN ADJUSTED
11153 BILLION 9308310068 930831 COMMODITIES LUMBER FUTURES PRICES
SETTLE SHARPLY LOWER SHRUGGING OFF EARLY GAINS IN TURBULENT SESSION 
 BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO A TURBULENT DAY OF LUMBER FUTURES TRADING SAW PRICES RISE AND
THEN FALL BY THE DAILY PRICEMOVEMENT LIMIT BEFORE SETTLING SHARPLY LOWER
FOR THE DAY

AT THE CHICAGO MERCANTILE EXCHANGE THE ACTIVELY TRADED SEPTEMBER LUMBER
FUTURES CONTRACT SETTLED AT 29750 PER THOUSAND BOARD FEET DOWN 810

EARLY YESTERDAY THE MERC'S FUTURES MARKET FED OFF CONTINUING STRENGTH IN
THE CASH MARKET FOR LUMBER AS PRICES QUICKLY REACHED THE DAILYPRICE
MOVEMENT LIMIT OF 10 PER THOUSAND BOARD FEET PRICES ON THE CASH MARKET HAD
BEEN QUOTED FRIDAY AT 287 PER THOUSAND BOARD FEET AND WERE QUOTED AT 290
YESTERDAY LARGELY BECAUSE OF HIGH CASH PRICES FUTURES PRICES HAD RISEN
SHARPLY LAST WEEK

THE MARKET ALSO RECEIVED SUPPORT FROM SPECULATION THAT DAMAGE INFLICTED BY
HURRICANE EMILY WHICH IS THREATENING TO REACH THE EASTERN COAST OF THE
US MIGHT SPUR SALES OF PLYWOOD AND OTHER LUMBER MATERIALS

BUT AS YESTERDAY'S TRADING SESSION WORE ON THE FUTURES MARKET FAILED TO
HOLD THE GAINS THE MARKET HAS HAD A TREMENDOUS SURGE LATELY AND THE
FUTURES MARKET GOT AHEAD OF THE CASH SAID WILLIAM O'NEILL CHIEF FUTURES
STRATEGIST FOR MERRILL LYNCH THE PRICE OF THE FUTURES JUST GOT TOO HIGH

WAVES OF SELLING OF FUTURES CONTRACTS BY LUMBER MILLS BEGAN EXERTING
DOWNWARD PRESSURE ON FUTURES PRICES IN MIDMORNING ANALYSTS SAID THESE
MILLS WERE CAPITALIZING ON THE RECENT RUNUP IN PRICES BY USING FUTURES
CONTRACTS TO AGREE TO SELL THEIR FINISHED LUMBER AT HIGH PRICES

IN ADDITION TO THE SELLING PRESSURE IN THE MARKET THE COMMERCE DEPARTMENT
RELEASED A SINGLEFAMILY HOME SALES REPORT THAT THE MARKET INTERPRETED AS
DISAPPOINTING THE DEPARTMENT REPORTED JULY HOME SALES AT AN ANNUALIZED RATE
OF 629000 UNITS DOWN 5 TRADERS WERE ESPECIALLY DISHEARTENED BY THE FACT
THAT THE REPORT SHOWED DECLINING SALES IN ALL REGIONS OF THE COUNTRY MR
O'NEILL SAID

THERE WAS A REAL LACK OF FRESH BUYING SOME HEAVY LUMBERMILL HEDGING AND
SOME PROFITTAKING SAID ONE LUMBER WHOLESALER ACTIVE IN THE FUTURES
MARKET ONCE THAT CHEWED UP WHAT LITTLE BUYING THERE WAS THE MARKET FELL
UNDER ITS OWN WEIGHT

AFTER HAVING TRADED AS HIGH AS 31560 PER THOUSAND BOARD FEET EARLY
YESTERDAY THE SEPTEMBER CONTRACT FELL AS LOW AS 29560 BEFORE SETTLING AT
29750 ONE TRADER SAID THE PRICE SWINGS IN THE MERC'S LUMBER FUTURES PIT
WERE WILDER THAN AT ANY TIME SINCE LAST SPRING WHEN FUTURES PRICES ROSE BY
THE DAILY LIMIT FOR 14 CONSECUTIVE TRADING SESSIONS

IN OTHER COMMODITY MARKETS

PRECIOUS METALS FUTURES PRICES FIRMED ACROSS THE BOARD AS TRADERS PUSHED
THE METALS HIGHER ON MOSTLY TECHNICAL GROUNDS DEALERS AND ANALYSTS SAID ON
NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY GAINED 120 TO
SETTLE AT 37330 AN OUNCE THE YELLOW METAL HAS BEEN TRADING IN A NARROW
RANGE AROUND 370 IN RECENT DAYS ON FRIDAY IT GAINED 130 FOLLOWING A
WEAKER SESSION THURSDAY MANY ANALYSTS NOW THINK GOLD WILL ADHERE TO A 373
TO 380 RANGE FOR THE NEXT SEVERAL WEEKS GIVEN CURRENT SUPPLY AND DEMAND
PATTERNS OTHERS SUGGEST A BROADER MORE VOLATILE RANGE OF 364 TO 390 MY
VIEW IS THAT GOLD WILL STAY IN THE 364390 RANGE BUT WE'RE CAUTIONING
CLIENTS ABOUT THE DANGER OF TRADERS COMING IN AND TRYING TO SLAM THE
MARKET SAID JEFFREY CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A
PRECIOUSMETALS CONSULTANCY IN NEW YORK ON THE COMEX SILVER FOR DECEMBER
DELIVERY JUMPED 85 CENTS TO 4878 AN OUNCE YESTERDAY ON THE NEW YORK
MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY CLIMBED 240 TO 384 AN
OUNCE WHILE PALLADIUM FOR DECEMBER DELIVERY ADDED 260 TO 12460 AN
OUNCE

ORANGE JUICE PRICES OF FROZEN CONCENTRATED ORANGEJUICE FUTURES CONTINUED
TO RALLY ON MOSTLY TECHNICAL FACTORS TRADERS SAID ON NEW YORK'S COTTON
EXCHANGE THE ACTIVELY TRADED NOVEMBER CONTRACT ADDED 185 CENTS TO SETTLE
AT 1274 A POUND TECHNICALLY THE MARKET LOOKS GREAT SAID STEPHEN PLATT
A SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO THE MARKET SEEMS
LIKE IT'S MOVING UP ON ITS OWN MOMENTUM BUT THAT'S A LITTLE BIT
SURPRISING GIVEN THE AVAILABILITY OF STOCKS IN THE US MR PLATT ADDED
THE DEAN WITTER ANALYST PREDICTED THAT RESISTANCE WOULD SET IN AT AROUND
130 FOR THE SPOT SEPTEMBER CONTRACT WHICH SETTLED AT 1242 YESTERDAY

ENERGY CRUDEOIL PRICES SLID IN MODERATE TRADING AS MARKET PARTICIPANTS
CONTINUED TO FOCUS ON DISRUPTIONS TO NIGERIA'S OIL INDUSTRY BECAUSE OF
POLITICAL TURMOIL IN THE COUNTRY CONTRACTS SURGED FRIDAY ON FEARS OF SUPPLY
PROBLEMS BUT YESTERDAY A NUMBER OF OIL COMPANIES SAID THEY WERE PUMPING
CRUDE AND LOADING TANKERS FROM NIGERIA TRADERS SAID NIGERIA'S PROBLEMS
DIDN'T LOOK AS SEVERE AS THEY HAD THOUGHT LAST WEEK ALTHOUGH THE SITUATION
REMAINS CONFUSED ON THE NEW YORK MERCANTILE EXCHANGE CRUDE FOR OCTOBER
DELIVERY SETTLED AT 1873 A BARREL DOWN SEVEN CENTS TRADING WAS MODERATE
PARTLY BECAUSE LONDON'S INTERNATIONAL PETROLEUM EXCHANGE WAS CLOSED FOR A
BANK HOLIDAY MEANWHILE NATURALGAS FUTURES SLID AFTER IT APPEARED THAT
HURRICANE EMILY WOULDN'T CROSS OVER NATURALGAS PRODUCTION IN THE GULF OF
MEXICO SUCH SPECULATION BOOSTED CONTRACTS LAST WEEK ON THE NEW YORK MERC
NATURAL GAS FOR OCTOBER DELIVERY SETTLED AT 240 PER MILLION BRITISH
THERMAL UNITS DOWN 44 CENTS 9308310067 930831 LIMITED PLANS 
REORGANIZATION STOCK BUYBACK  BY TERI AGINS STAFF REPORTER OF
THE WALL STREET JOURNAL

LIMITED INC ANNOUNCED A MAJOR RESTRUCTURING THAT INCLUDES SHRINKING OR
CLOSING ABOUT 360 LIMITED AND LERNER STORES BY THE END OF 1995 AND BUYING
BACK AS MUCH AS 500 MILLION OR ABOUT 6 OF ITS SHARES

THE RESTRUCTURING COMES AFTER SPECULATION ON WALL STREET IN RECENT WEEKS
THAT LIMITED MIGHT USE THE PROCEEDS FROM ITS PREVIOUSLY ANNOUNCED
DIVESTITURE OF 60 OF ITS INTEREST IN ITS BRYLANE CATALOG DIVISION TO COVER
THE COSTS OF CLOSING SOME OF ITS WEAKER STORES

THE RETAILER BASED IN COLUMBUS OHIO ANNOUNCED THE ACTION LATE YESTERDAY
IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ITS SHARES ROSE 1375
OR 62 TO 23625

LIMITED SAID IT HAD COMPLETED THE BRYLANE SALE FROM WHICH IT EXPECTS TO BOOK
A 203 MILLION PRETAX GAIN FROM THE 285 MILLION IN CASH IT RECEIVED FROM
THE PURCHASER AN AFFILIATE OF FREEMAN SPOGLI & CO LIMITED WILL RETAIN A
40 STAKE IN BRYLANE

LIMITED VICE CHAIRMAN KENNETH B GILMAN CALLED THE BRYLANE TRANSACTION AN
IMPORTANT COMPONENT IN A PROGRAM TO SPEED UP GROWTH OF ITS RETAIL BUSINESS

IN RECENT YEARS LIMITED'S MARGINS HAVE SLIPPED AT ITS MORE MATURE WOMEN'S
APPAREL DIVISIONS LIMITED AND LERNER WHERE POORLYRECEIVED FASHIONS
AND OVEREXPANSION HAVE HURT RESULTS LIMITED HAD INDICATED THAT ITS GAME
PLAN FOR THE FUTURE WOULD HEAVILY EMPHASIZE A NEW GENERATION OF GROWTH
BUSINESSES SUCH AS ITS STRUCTURE MEN'S APPAREL CHAIN ITS BATH & BODY WORKS
TOILETRIES CHAIN AND ITS CACIQUE LINGERIE CHAIN

THE ANNOUNCEMENT SUGGESTS TO WALL STREET THAT THIS COMPANY IS FINALLY
MAKING A CHANGE SAID JENNIFER BLACK GROVES AN ANALYST AT BLACK & CO IN
PORTLAND ORE CLOSING SOME OF THE LERNER LOCATIONS AND GETTING THE SQUARE
FOOTAGE RIGHT AT LIMITED THIS STRUCTURAL FINETUNING FITS TOGETHER WITH
THE PHILOSOPHICAL CHANGES THAT LIMITED IS MAKING OF SHARING INFORMATION
BETWEEN DIVISIONS SHE SAID

MR GILMAN SAID THE COMPANY WILL USE A PORTION OF THE BRYLANE PROCEEDS TO
PAY THE COSTS OF CLOSING ABOUT 100 LERNER STORES AND REMODELING OR REDUCING
THE SIZE OF ABOUT 260 LIMITED STORES

THE COMPANY SAID IT PLANS TO THE EXTENT POSSIBLE TO RELOCATE EMPLOYEES AT
STORES TO BE CLOSED TO OTHER STORES LIMITED OPERATES 4481 SPECIALTY
STORES INCLUDING ABOUT 906 LERNER STORES AND 759 LIMITED STORES IT ALSO
OPERATES TRENDY WOMEN'S APPAREL SHOPS UNDER THE EXPRESS NAME VICTORIA'S
SECRET LINGERIE SHOPS AND ABERCROMBIE & FITCH CASUAL CLOTHING STORES

LIMITED ALSO SAID THAT IT PLANS TO TAKE A 200 MILLION PRETAX CHARGE AGAINST
EARNINGS IN THE FISCAL THIRD QUARTER ENDING IN OCTOBER TO REDUCE THE VALUE
OF CERTAIN LERNER LIMITED AND HENRI BENDEL STORES AS WELL AS OTHER ASSETS
MR GILMAN SAID GOING FORWARD WE BELIEVE THIS EFFORT WILL BEAR FRUIT AS WE
EMPHASIZE OUR BEST PERFORMING STORES AND SHED THOSE ASSETS THAT DO NOT
PERFORM TO OUR EXPECTATIONS

FOR THE 1992 FISCAL THIRD QUARTER LIMITED POSTED NET INCOME OF ABOUT 80
MILLION OR 22 CENTS A SHARE

THE COMPANY SAID THAT IT DOESN'T PLAN ANY MORE DIVESTITURES OR OTHER
RESTRUCTURING MOVES IN THE NEAR FUTURE WE BELIEVE THAT THIS IS THE FULL
EXTENT OF THE PROGRAM MR GILMAN SAID

LIMITED SAID IT WOULD BUY BACK ITS SHARES FROM TIME TO TIME IN THE OPEN
MARKET 9308310066 930831 MARKETING & MEDIA TIME WARNER UNIT RETRACTS 
POLICY ON SALE OF USED DISKS

NEW YORK A TIME WARNER INC UNIT BACKED DOWN IN ITS EFFORT TO DISCOURAGE
THE SALE OF USED COMPACT DISKS BECOMING THE SECOND MAJOR RECORD DISTRIBUTOR
TO DO SO IN THE FACE OF RESTRAINTOFTRADE LAWSUITS

WARNER/ELEKTRA/ATLANTIC CORP THE DISTRIBUTION ARM OF TIME WARNER INC'S
WARNER MUSIC GROUP SAID IT WOULD WITHDRAW ITS RECENT POLICY OF REFUSING TO
PROVIDE COOPERATIVE ADVERTISING SUPPORT TO RETAILERS THAT SELL USED CDS WITH
THE COMPANY'S LABEL WEA IS THE LARGEST MUSIC DISTRIBUTOR IN THE US

THE POLICY HAD SPARKED LAWSUITS FILED AGAINST WARNER AND OTHER MAJOR
DISTRIBUTORS BY RETAILER WHEREHOUSE ENTERTAINMENT INC AND THE INDEPENDENT
MUSIC RETAILERS ASSOCIATION THEY CHALLENGED THE WITHHOLDING OF COOP AD
MONEY

LAST WEEK THORN EMI PLC'S CEMA DISTRIBUTION RESUMED COOP ADVERTISING WITH
RETAILERS OF USED CDS CITING ITS HOPE TO AVOID A COURT BATTLE WARNER
MUSIC EMI AND TWO OTHER MAJOR MUSIC DISTRIBUTORS WERE THE TARGETS OF THE
LAWSUITS WHEREHOUSE IS EXPECTED TO DROP CEMA AND WARNER/ELEKTRA/ATLANTIC
FROM ITS LAWSUIT

DISTRIBUTION ARMS OF SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO
CONTINUE TO PENALIZE RETAILERS WHO SELL USED CDS WHICH MUSIC COMPANIES SEE
AS ERODING SALES OF NEW MORE EXPENSIVE RECORDINGS NEITHER SONY NOR
MATSUSHITA COULD BE REACHED FOR COMMENT 9308310065 930831 US BASEBALL
PLAYERS FORCED OUT AT HOME SCORE BIG IN TAIWAN  THEY STAR ON
CASHRICH TEAMS AS FANS CHEER GAMES BOO UMPIRES EAT CHICKEN FEET 
 BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL

TAIPEI TAIWAN THE PITCHER'S MOUND IS IN MISERABLE SHAPE AGAIN TONIGHT
AND THAT MAKES IT HARD FOR THE STAR HURLER OF THE BROTHER HOTEL ELEPHANTS TO
GET HIS FORKBALL OVER THE PLATE AFTER GIVING UP A COUPLE OF RUNS CHIP
DUNCAN HEADS FOR THE DUGOUT TO CONFER WITH HIS MANAGER

TRADE NEGOTIATORS MUST HAVE AN EASIER TIME OF IT MANAGER TOSHIDA YAMANE
OFFERS HIS ADVICE TO A JAPANESELANGUAGE TRANSLATOR WHO THEN SPEAKS CHINESE
TO AN ENGLISHLANGUAGE TRANSLATOR BY THE TIME EVERYBODY HAS HAD HIS SAY IT
IS TIME TO HEAD BACK TO THE MOUND AND MR DUNCAN IS STILL TRYING TO FIGURE
OUT JUST WHAT IT WAS HIS MANAGER WAS SAYING

IT IS JUST ONE MORE DETAIL OF THE GAME THAT IS LOST IN TRANSLATION IN
TAIWAN'S FLEDGLING PROFESSIONAL BASEBALL LEAGUE HOME TO PLAYERS AND COACHES
FROM SO MANY COUNTRIES THAT IT IS LIKE A LEAGUE OF NATIONS

THE BASEBALL WORLD USUALLY ASSOCIATES TAIWAN WITH ITS TEAMS OF 12YEAROLDS
THAT OFTEN DOMINATE THE ANNUAL LITTLE LEAGUE WORLD SERIES IN WILLIAMSPORT
PA BUT LITTLE LEAGUERS GROW UP AND ONLY A LUCKY FEW TAIWANESE HAVE EVER
MADE A LIVING AT THE GAME AND THEN IN JAPAN

NOW THEY FINALLY HAVE A LEAGUE OF THEIR OWN

THE NEW TEAMS HAVE LOTS OF MONEY TO ACQUIRE FOREIGN TALENT SO THE FORMER
LITTLE LEAGUERS HAVE BEEN JOINED BY A POLYGLOT GROUP OF AMERICANS JAPANESE
DOMINICANS AND PANAMANIANS WHO DIDN'T HAVE THE SKILLS OR THE BREAKS TO MAKE
IT IN THE BIG LEAGUES ELSEWHERE SOME PLAYERS WHO USED TO SCRAPE BY ON
1500 A MONTH IN THE US MINOR LEAGUES NOW ARE PULLING DOWN MORE THAN
100000 A YEAR PLAYING FOR THE SIX CORPORATEOWNED TAIWANESE TEAMS

FOR YEARS BASEBALL PLAYERS IN THE TWILIGHT OF THEIR CAREERS IN THE US
MAJOR LEAGUES FOUND A TEMPORARY HOME IN JAPAN FILLING TOKEN ROSTER SLOTS
RESERVED FOR GAIJIN STARS JAPAN WAS VIEWED AS THE END OF THE ROAD TODAY
IT HAS BECOME A HOT PLACE TO PLAY IF ONLY BECAUSE OF THE
MULTIMILLIONDOLLAR CONTRACTS OFFERED TOP PLAYERS ONE EXAMPLE JESSE
BARFIELD WHO PLAYED FOR THE NEW YORK YANKEES LAST YEAR NOW KNOCKS IN RUNS
FOR THE YOMIURI GIANTS

NOW A SOSO US BALLPLAYER CAN FIND OPPORTUNITIES IN TAIWAN'S SUBTROPICAL
BUSH LEAGUE SINCE THE LEAGUE STARTED FOUR YEARS AGO THE TEAMS HAVE
BARNSTORMED AROUND THE ISLAND BY BUS PLAYING IN STADIUMS A WORLD AWAY FROM
BALTIMORE'S NEW CAMDEN YARDS THESE RAMSHACKLE AFFAIRS DON'T EVEN HAVE
LOCKER ROOMS BUT THE FANS ARE INTENSELY LOYAL TO THEIR TEAMS CHEERING
EVERY PLAY AS IF IT WERE THE DECIDING MOMENT OF THE WORLD SERIES IN THE
SEATS WHICH OCCASIONALLY ARE THROWN ONTO THE FIELD TO PROTEST AN UMPIRE'S
CALL THE CROWDS TEND TO FAVOR CHICKEN FEET OVER PEANUTS AND CRACKER JACK
BEER IS LESS POPULAR THAN BETEL NUT A MILD STIMULANT THAT IS CHEWED BY
TAIWAN'S WORKING CLASS

GAMBLING IS COMMON I'VE GOT 500000 GOING TONIGHT ANNOUNCES A
WELLHEELED HIGH ROLLER AS HE ENTERS AN AIRCONDITIONED VIP BOX BEHIND HOME
PLATE THAT'S 20000

WITH FIVE FOREIGNERS ALLOWED ON A TEAM'S ROSTER JAPAN ALLOWS ONLY TWO THE
TAIWANESE LEAGUE HAS EXPERIENCED STEADY TURNOVER IN EXPATRIATE PLAYERS SOME
HAVE TROUBLE ADJUSTING TO A FOREIGN CULTURE OTHERS ARE UNHINGED BY
MANAGERS' AUTOCRATIC STYLE SEVERAL HAVE RUN AFOUL OF OWNERS WHO ASSUME THAT
THEIR MERCENARIES SHOULD ALWAYS PLAY TO PERFECTION LAST MONTH ONE OF THE
TOP PITCHERS IN THE LEAGUE FORMER ST LOUIS CARDINAL GREG MATTHEWS WAS
ABRUPTLY DISMISSED BY THE WEICHUAN DRAGONS

BUT FOR THE PLAYERS WHO CAN ADJUST AND PRODUCE THE REWARDS ARE TREMENDOUS
THE FIRST TIME I STEPPED ONTO THE FIELD AND HEARD THOSE FANS CHANTING MY
NAME I GOT SHIVERS UP MY SPINE SAYS MR DUNCAN A 28YEAROLD WHO PITCHED
FOR SIX SEASONS IN THE OBSCURITY OF MINORLEAGUE TOWNS INCLUDING SALEM VA
AND MEMPHIS TENN LAST YEAR HE FINALLY THREW IN THE TOWEL AND MOVED ACROSS
THE PACIFIC

ANONYMITY QUICKLY DISAPPEARED WHEN MR DUNCAN WON SEVERAL GAMES FOR THE
ELEPHANTS LATE IN THE SEASON AND WAS NAMED MOST VALUABLE PLAYER OF THE
LEAGUE'S CHAMPIONSHIP SERIES IN TAIWAN HE IS A CELEBRITY HAILED BY
YOUNGSTERS ON THE STREET AND THE SUBJECT OF ADULATORY COMIC STRIPS IN
BASEBALL MAGAZINES HERE IT'S SO DIFFERENT FROM THE STATES THE
MUSTACHIOED SANDYHAIRED FLORIDIAN SAYS IT'S LIKE HAVING THE STATUS OF
NOLAN RYAN OR DWIGHT GOODEN

THE FAME HAS BEEN ACCOMPANIED BY MORE MONEY THAN HE COULD EVER HOPE TO EARN
IN THE US IF CHIP DIDN'T GET A CHANCE TO GO TO TAIWAN LAST YEAR HIS
WIFE LINDA SAYS HIS ROOTCANAL WORK WOULD HAVE BROKEN US

MOST FOREIGN PLAYERS IN TAIWAN EARN BETWEEN 4500 AND 6500 A MONTH PLUS
PERFORMANCE BONUSES AND FREE HOUSING MARKETING PROMOTIONS MAY SOON LET MR
DUNCAN SINK HIS TEETH INTO SERIOUS MONEY HE GETS PAID FOR APPEARANCES HE
IS STARTING A LINE OF MEN'S PANTS ADORNED WITH HIS CHINESE NAME DENG KEN
HE IS ABOUT TO MARKET HIS BASEBALL POSTER

FOR A PITCHER WHO NEVER ROSE ABOVE THE AA LEVEL IN US BASEBALL HE TAKES
HIS NEWFOUND FAME REMARKABLY IN STRIDE TAIWAN HAS ALLOWED US TO MAKE A
FRESH START HE SAYS AND DO WHAT MANY GUYS IN THE STATES WHO'VE BEEN IN
THE MINORS AND WHO LOVE THE GAME NEVER GET

THERE IS A PRICE TO BE PAID IN FRUSTRATION ON THE FIELD HOWEVER AT ITS
BEST THE TAIWANESE GAME CAN BE COMPARED TO GOOD MINORLEAGUE BALL IN THE
US BUT IT OFTEN ISN'T AT ITS BEST SOME GAMES ARE PRETTY SLOPPY BETWEEN
HUMAN ERROR AND BAD BOUNCES ON ILLKEPT FIELDS FOREIGN PITCHERS HAVE ENDED
UP REBUILDING PITCHING MOUNDS THEMSELVES SO THEY CAN THROW COMFORTABLY

MORE THAN THE MONEY AND THE LOCAL FAME THE FOREIGN PLAYERS SAY IT IS THE
JOY OF A GAME THEY HAVE BEEN PLAYING SINCE THEY WERE KIDS THAT INSPIRES THEM
IN TAIWAN AL JONES IS A TACITURN 35YEAROLD RELIEF PITCHER WHO PLAYED TWO
SEASONS FOR THE CHICAGO WHITE SOX AND MANY MORE IN THE MINORS BUT INJURIES
CUT SHORT HIS CAREER AND HE ALREADY WAS OUT OF BASEBALL WHEN HE HEARD ABOUT
TAIWAN FOR THREE SEASONS AS AN ELEPHANT HE HAS BEEN OVERPOWERING BATTERS
WITH HIS FASTBALL

WHILE MR JONES APPRECIATES HIS PAYCHECK HE IS THRILLED JUST TO BE ABLE TO
PLAY BALL AGAIN THERE'S NOTHING LIKE GOING HOME AT NIGHT AND SAYING
TODAY I HAD FUN EVEN IF I LOST' HE SAYS

BUT PLAYERS ALSO HARBOR THE LINGERING HOPE THAT SUCCESS IN TAIWAN WILL LET
THEM CLIMB THE BASEBALL LADDER AGAIN BACK HOME OR IN JAPAN FOREIGN PLAYERS
IN TAIWAN FOLLOW PARTICULARLY THE FORTUNES OF TWO OF LAST YEAR'S PITCHERS
WHO NOW HAVE JOBS AT THE TOP MINORLEAGUE LEVEL IN THE US

MR DUNCAN WHO HAS PITCHED WELL THIS YEAR HOPES TO FIND A SLOT IN JAPAN OR
MAYBE EVEN THE US MAJOR LEAGUES ALTHOUGH THE MONEY HE IS PULLING DOWN
HERE MAKES EVER GOING BACK TO THE MINOR LEAGUES UNAPPEALING EVEN MR JONES
HARBORS THOUGHTS OF ONE LAST SHOT AT STARDOM I'M IN TOUCH WITH THE SAN
FRANCISCO GIANTS FROM TIME TO TIME HE SAYS LETTING THEM KNOW HOW MY
FASTBALL IS HEY THERE'S ALWAYS A NEED FOR A GOOD RELIEVER IN THE MAJOR
LEAGUES 9308310064 930831 NEW SECURITIES ISSUES

THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND
NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY
DOW JONES CAPITAL MARKETS REPORT

ASSOCIATES CORP 300 MILLION OF NOTES DUE SEPT 1 1998 PRICED AT PAR
TO YIELD 525 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE
PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY
MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S
CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP
ASSOCIATES IS A UNIT OF FORD MOTOR CO

FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE SEPT
7 1998 PRICED AT PAR TO YIELD 435 ACCORDING TO MCM CORPORATEWATCH THE
COUPON STEPS UP AFTER TWO YEARS TO 555 THE NOTES WHICH ARE NONCALLABLE
FOR TWO YEARS WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS
THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO

FIRST BANK NA 100 MILLION OF SUBORDINATED BANK NOTES DUE OCT 15 2003
PRICED AS 6S AT 99094 TO YIELD 612 ACCORDING TO MCM CORPORATEWATCH THE
NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE
TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL
BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES
CORP FIRST BANK IS A UNIT OF FIRST BANK SYSTEM INC

CITICORP 350 MILLION OF NONCUMULATIVE DEPOSITARY PERPETUAL PREFERRED
STOCK PRICED WITH A 75 DIVIDEND YIELD AND OFFERED AT 25 APIECE THROUGH
UNDERWRITERS LED BY MERRILL LYNCH & CO THE SHARES NONCALLABLE FOR FIVE
YEARS ARE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P

EAST JAPAN RAILWAY CO INITIAL PUBLIC OFFERING OF 14 MILLION SHARES
PRICED AT 380000 YEN 366282 APIECE VIA JAPANESE NATIONAL RAILWAYS
SETTLEMENT CORP

HOUSEHOLD INTERNATIONAL INC 100 MILLION OF DEPOSITARY SHARES OF 25
CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 735 DIVIDEND YIELD
ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS IS
RATED BAA2 BY MOODY'S AND SINGLEAMINUS BY S&P

JACKSONVILLE FLA ELECTRIC AUTHORITY 3506 MILLION OF BONDS PRICED BY
A BEAR STEARNS & CO GROUP INCLUDED IN THE OFFERING ARE 1689 MILLION
SERIES 1993A BULK POWER SUPPLY SYSTEM REVENUE BONDS WHICH HAVE YIELDS THAT
RANGE FROM 27 IN 1994 TO 545 IN 2021 THERE ARE ALSO 1817 MILLION
SERIES 1993B ELECTRIC SYSTEM REVENUE REFUNDING BONDS WHICH HAVE YIELDS
RANGING FROM 27 IN 1994 TO 545 IN 2019 FITCH INVESTORS SERVICE INC HAS
RATED THE BONDS DOUBLEA1 MOODY'S IS EXPECTED TO ASSIGN A DOUBLEA1
RATING AND S&P IS EXPECTED TO GIVE THE OFFERING A DOUBLEA RATING

ORANGE COUNTY FLA 1815 MILLION SERIES 1993A AND 1993B SALESTAX
REVENUE REFUNDING BONDS AND REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON
INC GROUP THE 531 MILLION SERIES 1993A REFUNDING BONDS ARE PRICED TO
YIELD FROM 4 IN 1998 TO 537 IN 2016 ALL OF THE SERIES 1993A BONDS ARE
INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS
FROM BOTH MOODY'S AND S&P THERE ARE ALSO 1284 MILLION SERIES 1993B
REVENUE BONDS PRICED TO YIELD FROM 418 IN 1999 TO 551 IN 2024 WITH THE
EXCEPTION OF THE 2013 AND 2024 MATURITIES THE SERIES 1993B BONDS ARE ALSO
FGICINSURED BONDS DUE IN 2013 AND 2024 AREN'T INSURED AND HAVE A
SINGLEA1 RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P

TENNESSEE VALLEY AUTHORITY 150 MILLION OF MEDIUMTERM NOTES DUE SEPT 9
1996 PRICED AT PAR TO YIELD 419 ACCORDING TO MCM CORPORATEWATCH THE
NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FIVE BASIS
POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY
MERRILL LYNCH & CO

FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE
OFFERING SERIES 1594 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE
SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND
WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE
OFFERING SERIES 1993194 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE
SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND
WEIGHTED AVERAGE MATURITY OF 178 MONTHS 9308310063 930831 LEISURE & ARTS
 TIME OFF DIVERSIONS AND EXCURSIONS AUG 31SEPT 13

DOWNTOWN COMES ALIVE WITH MUSIC DANCE THEATER VISUAL AND LITERARY ARTS
FOOD CRAFTS AND CHILDREN'S ACTIVITIES DURING THIS FOURDAY ENTERTAINMENT
EXTRAVAGANZA VISITORS CAN PARTICIPATE WITH PAINTBRUSHES OR BY WRITING FOR
THE BUMBER WEEKLY NEWSPAPER CHILDREN CAN CREATE JURASSICSTYLE PLAYMATES OR
STAR IN THEIR OWN VIDEO CARTOONS EVENING CONCERTS INCLUDE POP HEADLINERS
SUCH AS CHET ATKINS RAY CHARLES AND THE KINKS

MORE THAN 600 ARTISTS WILL EXHIBIT OR PERFORM DURING THIS ANNUAL MULTIMEDIA
ARTS EXHIBITION VISITORS CAN JOIN SIX WALKING TOURS COVERING FOUR SQUARE
MILES OF EXHIBITION SITES IN THE ART COMMUNITY THE FREE ARTS CARNIVAL WILL
INCLUDE VISUAL AND PERFORMANCE ARTISTS THEATER AND DANCE TROUPES
EXPERIMENTAL FILM AND VIDEO MAKERS POETS MUSICIANS FASHION DESIGNERS AND
ARCHITECTS

VARIOUS LOCATIONS BUCKTOWN AND WICKER PARK NEIGHBORHOODS SEPT

CHARLES MOORE'S NEW DESIGN WILL BE UNVEILED SEPT 4 IN EXPANDED GALLERY
SPACE THE MUSEUM WILL FEATURE THROUGH JAN 24 COLLECTING WITH A PASSION
THE DAVID AND GERRY PINCUS COLLECTION A PANORAMA OF WORK FROM AMERICAN
MODERNS SUCH AS DE KOONING WARHOL JOHNS RAUCHENBERG CHAMBERLAIN DI
SUVERO AND MAPPLETHORPE ANOTHER INAUGURAL EXHIBIT WILL SHOWCASE SELECTED
ITALIAN BAROQUE PAINTINGS FROM THE MUSEUM'S PERMANENT COLLECTION IN
ADDITION TO EIGHT BORROWED FOR THE EXHIBIT

ARTISTS FASCINATED BY MEXICAN ART AND CULTURE WHO LIVED OR MADE THE TRIP
ACROSS THE BORDER DURING THE PERIOD BETWEEN THE END OF THE MEXICAN
REVOLUTION AND THE AFTERMATH OF WORLD WAR II ARE THE FOCUS OF THIS
EXHIBITION PAINTINGS SCULPTURES AND PHOTOGRAPHS EXPLORE THE EVOLUTION OF
AMERICA'S FASCINATION WITH MEXICO AND FEATURE IMAGES OF TRADITIONAL RURAL
LIFE AND ANCIENT INDIAN CULTURE INCLUDING PORTRAITS OF LIFE BELOW THE
2000MILE BORDER THAT HELPED SHAPE THE STEREOTYPES THAT PERSIST TODAY
INCLUDED IN THE DISPLAY ARE PHOTOGRAPHS BY LAURA GILPIN PAUL STRAND AND
EDWARD WESTON AND PAINTINGS BY JOSEF ALBERS MILTON AVERY MARSDEN HARTLEY
ROBERT MOTHERWELL AND HENRIETTA SHORE AS WELL AS WORK BY SOME OF THEIR
MEXICAN COUNTERPARTS

YALE UNIVERSITY ART GALLERY CHAPEL STREET AT YORK SEPT 11NOV

THE FALL SEASON OPENS WITH VERDI'S I VESPRI SICILIANI SEPT 10OCT 2
CAROL VANESS WILL SING ELENA CHRIS MERRITT IS ARRIGO TIMOTHY NOBLE IS
GUIDO DI MONFORTE AND JAMES MORRIS IS PROCIDA OTHER SEASON OPERAS ARE
DONIZETTI'S LA FILLE DU REGIMENT SEPT 11OCT 3 PUCCINI'S LA BOHEME
SEPT 19DEC 11 AND TURANDOT OCT 7NOV 2 JANACEK'S THE MAKROPULOS
CASE OCT 1430 WAGNER'S DIE MEISTERSINGER OCT 28NOV 17 MOZART'S
LA CLEMENZA DI TITO NOV 728 BELLINI'S I PURITANI NOV 16DEC 10
AND TCHAIKOVSKY'S THE QUEEN OF SPADES NOV 23DEC 12

MUSIC DIRECTOR CHRISTOPH ESCHENBACH LEADS THE OPENING CONCERT OF THE 80TH
ANNIVERSARY SEASON SEPT 11 WITH GUEST ARTIST YOYO MA PERFORMING THE
DVORAK CELLO CONCERTO AND ORCHESTRAL WORKS BY HIS CZECH COUNTRYMAN SMETANA
JONES HALL FOR THE PERFORMING ARTS 615 LOUISIANA ST 713 2272787
9308310062 930831 MANAGEMENT FINANCE CHIEFS LEAD THE WAY TO HIGHER
PAY  BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL

COMPENSATION FOR 200 OF THE HIGHESTPAID CHIEF FINANCIAL OFFICERS JUMPED AN
AVERAGE 25 LAST YEAR AS CORPORATIONS RECOGNIZED THEIR BROADER TALENTS AND
MOVED TO KEEP THE HEADHUNTERS AT BAY

THEIR PAY ON AVERAGE WAS 458636 UP FROM 366332 ACCORDING TO A NEW
SURVEY TO BE PUBLISHED THIS WEEK BY GLOBAL FINANCE MAGAZINE THE REPORT IS
BASED ON PUBLIC FILINGS FROM 1500 OF THE NATION'S LARGEST CORPORATIONS THAT
LIST THE FIVE HIGHESTPAID EXECUTIVES IN EACH COMPANY SALARY CASH BONUSES
PROFITSHARING AND CERTAIN PERQUISITES ARE INCLUDED IN THE 458636 FIGURE
BUT NOT OPTIONS EXERCISED AND RESTRICTED STOCK GRANTED

AS THE ROLE OF CHIEF FINANCIAL OFFICER HAS EVOLVED IN RECENT YEARS FROM
NUMBERSCRUNCHER TO STRATEGIC PLANNER SAYS CARL BURGEN EDITOR IN CHIEF OF
THE SPECIALTY PUBLICATION COMPANIES ARE CONSIDERING CFOS A CRITICAL
COMPONENT OF TOP MANAGEMENT AND ARE PAYING THEM ACCORDINGLY

TO BE SURE THE AVERAGE CHIEF FINANCIAL OFFICER DIDN'T ENJOY SUCH A HEFTY
INCREASE IN FACT AVERAGE SALARY AND BONUS HELD STEADY FOR CHIEF FINANCIAL
OFFICERS AT 400 OF THE NATION'S LARGEST INDUSTRIAL CORPORATIONS IN 1992
ACCORDING TO HEWITT ASSOCIATES LINCOLNSHIRE ILL A COMPENSATION
CONSULTING FIRM THE REASON FOR THE DISCREPANCY BETWEEN THE TWO SURVEYS BY
RELYING ON PROXIES DETAILING COMPANIES' FIVE BESTCOMPENSATED EXECUTIVES
GLOBAL FINANCE IS STARTING WITH CHIEF FINANCIAL OFFICERS WHO ARE BY
DEFINITION OUTSTANDING PERFORMERS AND TEND TO GET BIG RAISES

HOLDING FIRST PLACE IN THE GLOBAL FINANCE SURVEY IS JAMES CUNNANE CHIEF
FINANCIAL OFFICER OF DEFENSE CONTRACTOR GENERAL DYNAMICS CORP IN 1992 MR
CUNNANE 55 YEARS OLD TOOK HOME MORE THAN 3 MILLION IN SALARY AND BONUSES
THE BONUSES WERE LINKED TO A 320 INCREASE IN THE STOCK'S VALUE BETWEEN 1991
AND 1992 A SPOKESMAN SAYS THE COMPENSATION REPRESENTED A 535 BOOST OVER
MR CUNNANE'S 1991 PAY

IN SECONDPLACE IS ROLLIN DICK CHIEF FINANCIAL OFFICER OF CONSECO INC A
CARMEL IND INSURANCE HOLDING COMPANY MR DICK 60 GOT A 91 PAY
INCREASE IN 1992 EARNING JUST ABOVE 2 MILLION A CONSECO SPOKESMAN NOTED
THAT 1992 OPERATING EARNINGSPERSHARE WAS UP 79

THE GLOBAL FINANCE SURVEY CONDUCTED BY INVESTORS' FIDUCIARY SERVICES IN
ATLANTA PUTS THE MEDIAN 1992 PAY AT 379686 AN INCREASE OF 168 THE
FACT THAT THE MEDIAN THE MIDDLE FIGURE IN A LIST FROM HIGHEST TO LOWEST
 IS LOWER THAN THE AVERAGE SUGGESTS THAT THE AVERAGE IS SKEWED BY BIG
SALARIES AT THE TOP OF THE LIST STILL BY ELIMINATING THE THREE HIGHEST AND
LOWEST SALARIES FROM THE CALCULATIONS THE AVERAGE PAY DROPS ONLY TO
450599 A 246 ANNUAL BOOST

SEVERAL CHIEF FINANCIAL OFFICERS ENJOYING BIG PAY RAISES HAVE GAINED ADDED
TITLES AND RESPONSIBILITIES JAMES DIMON CHIEF FINANCIAL OFFICER OF
PRIMERICA CORP SINCE 1986 SAW HIS PAY JUMP 20 TO 13 MILLION AS THE
37YEAROLD ALSO BECAME THE FINANCIALSERVICES COMPANY'S PRESIDENT AT
MARION MERRELL DOW INC CHIEF FINANCIAL OFFICER EDWARD MEHRER 54 ALSO
BECAME CHIEF ADMINISTRATIVE OFFICER HIS PAY CLIMBED 36 TO 688335

AS DEMAND HAS INCREASED OVER THE PAST SEVERAL YEARS FOR EXPERIENCED
COSTCUTTING EXECUTIVES MANY COMPANIES WITH BATTLETESTED FINANCE CHIEFS
HAVE BEGUN TO REWARD THEM MORE GENEROUSLY TO MAKE SURE THE CFO DOESN'T
LEAVE SAYS JAMES WOODRUM AN EXECUTIVE COMPENSATION CONSULTANT WITH HEWITT
ASSOCIATES

FOR CFOS OF A CERTAIN STATURE THERE IS SOMETHING APPROACHING A BIDDING WAR
FOR THEIR SERVICES BY COMPANIES WHO REALLY NEED THAT COSTCUTTING
EXPERTISE MR WOODRUM SAYS

WINDLE PRIEM AN EXECUTIVE RECRUITER WITH KORN/FERRY INTERNATIONAL ADDS
WITH ALL THE MASSIVE RESTRUCTURINGS AND REPOSITIONINGS THIS IS THE AGE OF
THE CFO SOME CHIEF FINANCIAL OFFICERS RECRUITED RECENTLY ARE EARNING 40
MORE THAN PREDECESSORS HE SAYS

BY RELYING ON PROXY FILINGS THE GLOBAL FINANCE STUDY MAY WELL UNDERSTATE
THE PAY OF THE NATION'S ELITE CHIEF FINANCIAL OFFICERS IN MANY OF THE
LARGEST CORPORATIONS WELLPAID DIVISIONAL CHIEFS EDGE OUT CHIEF FINANCIAL
OFFICERS FOR SPOTS ON THE PROXY LIST OF THE FIVE HIGHESTCOMPENSATED
INDIVIDUALS STILL THOSE CHIEF FINANCIAL OFFICERS ACTUALLY ARE PAID MUCH
MORE THAN SOME OF THEIR COUNTERPARTS AT OTHER CORPORATIONS WHO DO MAKE THE
PROXY LIST

THE RISE IN PAY OF CHIEF FINANCIAL OFFICERS IS EVEN MORE IMPRESSIVE WHEN
EXERCISED STOCK OPTIONS AND RESTRICTED STOCK GRANTS ARE TAKEN INTO
CONSIDERATION THE SURVEY INDICATES AVERAGE COMPENSATION SOARS TO 945532
UP 40 FROM 1991 A BIG REASON FOR THE JUMP CHIEF FINANCIAL OFFICERS JOINED
THE EXECUTIVE RUSH TO EXERCISE STOCK OPTIONS BEFORE CONGRESS COULD LEVY
HEAVIER PERSONAL TAXES 9308310061 930831 INTERNATIONAL MONTEDISON
HOLDERS APPROVE OF SUIT AGAINST EXEXECUTIVES FERRUZZI FAMILY  BY
LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL

MILAN SHAREHOLDERS OF CRISISRACKED MONTEDISON SPA APPROVED OF TAKING
LEGAL ACTION AGAINST SIX FORMER EXECUTIVES AND FERRUZZI FAMILY MEMBERS FOR
ALLEGED MISMANAGEMENT AND FRAUD

IN A SIXHOUR MEETING MARKED BY LENGTHY COMPLAINTS FROM ANGRY SHAREHOLDERS
MONTEDISON'S CREDITORAPPOINTED CHAIRMAN GUIDO ROSSI SAID THE LEGAL ACTION
IS AN ATTEMPT TO RECOVER COMPANY FUNDS ILLEGALLY SIPHONED OUT OF THE
AGROCHEMICALS GIANT THE MAIN OPERATING UNIT OF FERRUZZI FINANZIARIA SPA
BEGINNING BACK AT LEAST IN 1988 THE SUIT RELATES TO MORE THAN 560 BILLION
LIRE 3512 MILLION ALLEGEDLY USED BY FORMER MANAGEMENT TO COVER POLITICAL
BRIBES AND LOSSES STEMMING FROM A FAILED ATTEMPT TO CORNER THE SOYBEAN
MARKET IN CHICAGO

A MILAN COURT FRIDAY AGREED TO FREEZE AS MUCH AS 500 BILLION LIRE IN ASSETS
FROM THE SIX FORMER EXECUTIVES AND FERRUZZI FAMILY MEMBERS PENDING THE
OUTCOME OF THE CIVIL SUIT

BUT OVER THE OBJECTION OF SEVERAL SHAREHOLDERS MR ROSSI STOPPED SHORT OF
EXTENDING THE LEGAL ACTION TO MONTEDISON'S FORMER BOARD OF DIRECTORS AND
AUDITORS

THE ISSUE OF THE RESPONSIBILITY OF OTHER DIRECTORS INTERNAL AUDITORS AS
WELL AS THE AUDITING FIRM IS NOW UNDER CAREFUL STUDY BY THE CURRENT BOARD
MR ROSSI SAID HE SAID THAT BECAUSE OF THE COMPLEXITY AND SECRETIVENESS OF
THE ALLEGED FINANCIAL TRANSACTIONS IT IS UNLIKELY THE ENTIRE BOARD OF
DIRECTORS KNEW OF THE IRREGULARITIES

THE SIX EXECUTIVES NAMED IN THE SUIT ARE ARTURO FERRUZZI FORMER MONTEDISON
CHAIRMAN HIS BROTHERINLAW CARLO SAMA EXMONTEDISON CHIEF EXECUTIVE
OFFICER FORMER MONTEDISON CHIEF EXECUTIVE GIUSEPPE GAROFANO HEIRS OF
EXMONTEDISON CHAIRMAN RAUL GARDINI AND FORMER FINANCIAL DIRECTORS ROBERTO
MAGNANI AND ROMANO VENTURI

BOTH MR FERRUZZI AND MR SAMA HAVE MAINTAINED THAT THEY KNEW NOTHING ABOUT
THE ALLEGED FINANCIAL IRREGULARITIES AND BLAME MR GARDINI WHO COMMITTED
SUICIDE JUST BEFORE HE WAS ABOUT TO BE ARRESTED IN THE SCANDAL LAST MONTH

ALSO DURING THE MEETING MR ROSSI RELEASED EXCERPTS OF THE ACCOUNTING
INVESTIGATION CONDUCTED BY DELOITTE & TOUCHE DETAILING THE IRREGULARITIES IN
MONTEDISON'S BALANCE SHEETS THE REPORT SHOWS HOW THE COMPANY HID LOSSES
THROUGH A SERIES OF FINANCIAL TRANSACTIONS BETWEEN OFFSHORE SUBSIDIARIES AND
FALSE BILLINGS FROM WHAT MR ROSSI CALLED INEXISTENT COMPANIES IN ADDITION
TO THE ALREADY REPORTED 435 BILLION LIRE SURPRISE LOSS FROM MONTEDISON
INTERNATIONAL HOLDING CO THE REPORT NOTED AN ADDITIONAL 82 MILLION OR
130 BILLION LIRE IN FALSE BILLING FOR CONSULTING FEES IN OFFSHORE
COMPANIES 9308310060 930831 WHO'S NEWS GENERAL AUTOMATION PICKS
LARRY MICHELS TO BE ITS CHAIRMAN

ANAHEIM CALIF GENERAL AUTOMATION INC NAMED LARRY MICHELS CHAIRMAN MR
MICHELS 62 YEARS OLD LEADS A GROUP OF EXECUTIVES WHO HAVE ACQUIRED ABOUT A
20 STAKE IN THE COMPANY

THE COMPUTER SYSTEM CONCERN SAID MR MICHELS WHO HAS BEEN A DIRECTOR SINCE
1990 RECENTLY RETIRED AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF
SANTA CRUZ OPERATION INC

MR MICHELS AND THE OTHER EXECUTIVES ACQUIRED THE STAKE BY PURCHASING SHARES
FROM SANDERSON ELECTRONICS PLC TERMS OF THE TRANSACTION HAVEN'T BEEN
DISCLOSED

WITH THE TRANSACTION SANDERSON ELECTRONICS' STAKE IN GENERAL AUTOMATION
FALLS TO JUST BELOW 30 FROM NEARLY 50 A GENERAL AUTOMATION SPOKESMAN SAID
SANDERSON WAS SEEKING TO REDUCE ITS INVESTMENT IN GENERAL AUTOMATION TO
CONCENTRATE ON ITS OPERATIONS IN BRITAIN

MR MICHELS SUCCEEDS PAUL THOMPSON 40 WHO REMAINS MANAGING DIRECTOR AT
SANDERSON 9308310059 930831 INTERNATIONAL ISRAEL'S CABINET APPROVES
PLAN FOR PALESTINIANS  LIMITED SELFRULE PROPOSAL AFFECTING GAZA
JERICHO STILL FACES OPPOSITION  BY GERALD F SEIB STAFF REPORTER
OF THE WALL STREET JOURNAL

WASHINGTON ISRAEL'S CABINET APPROVED A HISTORIC PLAN TO START GIVING
PALESTINIANS SELFRULE BY TURNING GOVERNING AUTHORITY OVER TO THEM IN THE
OCCUPIED GAZA STRIP AND THE WEST BANK TOWN OF JERICHO POSSIBLY WITHIN
WEEKS

THOUGH ITS RAMIFICATIONS ARE POTENTIALLY FARREACHING THIS FIRST STEP STILL
LEAVES ISRAELIS AND PALESTINIANS A LONG WAY FROM RESOLVING THEIR 26YEAROLD
DISPUTE OVER ISRAELIOCCUPIED TERRITORIES NEGOTIATORS WILL RETURN TO PEACE
TALKS IN WASHINGTON TODAY TO WORK OUT DETAILS OF THE GAZA AND JERICHO
TURNOVER AND TO DRAW UP A BROADER STATEMENT OF PRINCIPLES EXPLAINING HOW
PALESTINIAN AUTONOMY WOULD WORK ELSEWHERE IN THE WEST BANK

WHAT'S MORE THE EXPLOSIVE ISSUE OF JERUSALEM ISN'T BEING ADDRESSED AT ALL
YET AND THE EMOTIONAL QUESTION OF THE FATE OF ISRAELI SETTLERS IN
PALESTINIAN AREAS HASN'T BEEN RESOLVED ISRAELI OFFICIALS SAID HARDLINERS
AMONG BOTH THE ISRAELIS AND PALESTINIANS OPPOSE THE DEAL

YET THE NEW ISRAELIPALESTINE ACCORD IS THE MOST SUBSTANTIAL ONE EVER
REACHED BETWEEN THE TWO SIDES AND THE FIRST ONE THAT EMERGED FROM OPENLY
ACKNOWLEDGED CONTACTS BETWEEN ISRAEL AND THE PALESTINIAN LIBERATION
ORGANIZATION

UNDER THE NEW ARRANGEMENT FOR JERICHO AND THE GAZA STRIP ISRAEL WOULD
TRANSFER POWER TO PALESTINIAN AUTHORITIES IN URBAN AREAS AND ISRAELI FORCES
WOULD WITHDRAW FROM THE CENTERS OF JERICHO AND GAZA CITY ISRAELI OFFICIALS
SAID PALESTINIANS WOULD GET CONTROL OVER SUCH MATTERS AS INTERNAL POLICE
FUNCTIONS EDUCATION AND HEALTH

BUT THE ISRAELI ARMY WOULDN'T WITHDRAW FROM THE EDGES OF JERICHO AND GAZA
AND IT WOULD RETAIN CONTROL OF MAIN ROADS THE STATUS OF ISRAELI SETTLERS IN
THE PALESTINIAN AREAS WOULDN'T BE AFFECTED FOR NOW OFFICIALS SAID ISRAEL
LIKEWISE WOULD KEEP CONTROL OF THE VITAL BRIDGE OVER THE JORDAN RIVER
LINKING THE WEST BANK AND JORDAN

AN ISRAELI DIPLOMAT SAID THE TRANSFER OF POWER IN GAZA AND JERICHO COULD
BEGIN WITHIN WEEKS OR MONTHS PROVIDED THAT DETAILS ARE WORKED OUT IN THE
TALKS IN WASHINGTON THE TRANSFER OF AUTHORITY IN THE TWO TEST SITES WOULD
OCCUR EVEN BEFORE THE BROADER STATEMENT OF PRINCIPLES OF AUTONOMY IN
ISRAELIOCCUPIED AREAS IS COMPLETED THE DIPLOMAT SAID

THOUGH THE MOVE IS AROUSING OPPOSITION AMONG ISRAELI SETTLERS AND THE
ISRAELI RIGHT WING IT WAS APPROVED BY THE CABINET ON A 160 VOTE WITH TWO
MINISTERS ABSTAINING

ONE ISRAELI OFFICIAL SAID THE PLO IS EXPECTED TO APPROVE THE PLAN WITHIN THE
NEXT FEW DAYS

ISRAEL'S GOAL ANOTHER OFFICIAL SAID IS TO LAUNCH A REALWORLD
DEMONSTRATION SHOWING THAT THE PROCESS OF GRANTING PALESTINIANS AUTONOMY CAN
WORK THE WHOLE IDEA IS TO TRY AND PUT SOMETHING ON THE GROUND SOMETHING
CONCRETE SAID THE OFFICIAL

THERE HAS BEEN SPECULATION THAT ISRAEL ALSO WOULD RECOGNIZE THE PLO BUT THE
OFFICIAL SAID THAT IT MAY BE TOO EARLY TO TAKE SUCH A CONTROVERSIAL STEP

THE DEAL WAS WORKED OUT IN LARGELY SECRET NEGOTIATIONS IN NORWAY BETWEEN
ISRAELI FOREIGN MINISTER SHIMON PERES AND A HIGHRANKING PLO OFFICIAL THE
US MONITORED AND HELPED STEER THE TALKS AND STATE DEPARTMENT SPOKESMAN
MIKE MCCURRY SAID THE SUBSTANTIAL PROGRESS BEING MADE BY ISRAELI AND
PALESTINIAN NEGOTIATORS DREW ON THE DRAFT DECLARATION OF PRINCIPLES
PRESENTED BY THE UNITED STATES

IN ADDITION SECRETARY OF STATE WARREN CHRISTOPHER HELD AN UNANNOUNCED
FOURHOUR MEETING FRIDAY WITH MR PERES AT POINT MUGU NAVAL AIR STATION IN
CALIFORNIA TO DISCUSS THE NEGOTIATIONS

MODESTY WOULD SUGGEST THE US SHOULDN'T TAKE TOO MUCH CREDIT SAID MR
MCCURRY YOU HAVE A LOT OF HARD WORK AHEAD BY THE PARTIES AND BY THOSE
TRYING TO HELP THE PARTIES

OVERALL US OFFICIALS REMAINED CAUTIOUS NOTING THAT TRICKY DETAILS OF THE
TRANSFER OF POWER EVEN WITHIN JERICHO AND GAZA STILL HAVE TO BE WORKED OUT
ONE SENIOR CLINTON ADMINISTRATION AIDE SAID THE US ASSUMES IT WILL HAVE TO
PLAY A LARGE ROLE IN STEERING THOSE DISCUSSIONS TO A SUCCESSFUL CONCLUSION

STILL THE BREAKTHROUGH BETWEEN ISRAEL AND PALESTINIANS REPRESENTS A REAL
POLITICAL OPENING FOR PRESIDENT CLINTON THE US THE TRADITIONAL BROKER IN
ARABISRAELI DISPUTES NOW HAS AN OPPORTUNITY TO USE ITS DIPLOMATIC SKILLS
TO BRING ABOUT A DEAL ENDING THE FESTERING ISRAELIPALESTINIAN DISPUTE THAT
DEAL HAS ELUDED DIPLOMATS FOR A GENERATION AND HAS BEEN PERHAPS THE BIGGEST
SOURCE OF INSTABILITY THROUGHOUT THE MIDDLE EAST

IN ANY EVENT THE PROCESS OF IMPLEMENTING AUTONOMY FOR PALESTINIANS WOULD BE
LENGTHY PALESTINIAN AUTONOMY IN THE OCCUPIED TERRITORIES IS DESIGNED TO BE
A TEMPORARY ARRANGEMENT LASTING FOR FIVE YEARS AS ENVISIONED IN THE CAMP
DAVID PEACE ACCORDS BETWEEN ISRAEL AND EGYPT DURING THAT TIME NEGOTIATIONS
WOULD WORK OUT A PERMANENT SETTLEMENT

MEANWHILE IN SPECULATIVE ANTICIPATION OF THE PLAN LAND PRICES IN JERICHO
REPORTEDLY HAVE DOUBLED IN THE PAST FEW DAYS TO ABOUT 20000 AN ACRE
DESPITE ANXIETY THAT THE AUTONOMY EXPERIMENT COULD FAIL JERICHO WAS A
FLOURISHING RESORT TOWN BEFORE THE 1987 START OF THE PALESTINIAN UPRISING
9308310058 930831 DIVIDEND NEWS ALBERTSON'S INC

ALBERTSON'S INC BOISE IDAHO SAID ITS DIRECTORS DECLARED A 2FOR1 STOCK
SPLIT TO BE PAID OCT 4 TO STOCK OF RECORD SEPT 17 IN ADDITION DIRECTORS
OF THE OPERATOR OF FOOD STORES AND DRUGSTORES DECLARED THE USUAL QUARTERLY
DIVIDEND OF NINE CENTS A SHARE ON THE POSTSPLIT SHARES PAYABLE NOV 25 TO
STOCK OF RECORD NOV 5 9308310057 930831 BUSINESS BRIEF PACIFIC GAS
AND MOST CANADA SUPPLIERS AGREE TO SHIFT TO SHORTTERM CONTRACTS

PACIFIC GAS & ELECTRIC CO AND MOST OF ITS CANADIAN NATURAL GAS SUPPLIERS
SIGNED A PRELIMINARY ACCORD TO QUICKLY REPLACE LONGTERM AGREEMENTS WITH
SHORTERTERM CONTRACTS INTENDED TO BENEFIT CALIFORNIA CONSUMERS

THE COMPANY SAID THAT THE MEMORANDUM OF UNDERSTANDING WAS SIGNED BY 120 OF
THE 190 PRODUCERS THAT MAKE UP THE UTILITY'S CANADIAN SUPPLY POOL COVERING
ROUGHLY 75 OF THE POOL'S OVERALL GAS VOLUME PG&E UNVEILED THE PROPOSED
RESTRUCTURING OF SUPPLY TERMS LAST DECEMBER AFTER THE CALIFORNIA PUBLIC
UTILITIES COMMISSION ORDERED IT TO DROP LONGTERM SUPPLY PACTS UNDER WHICH
MORE THAN 800 MILLION OF GAS HAS FLOWED FROM CALGARY TO CALIFORNIA
ANNUALLY

THE COMMISSION'S DECISION DESIGNED TO GIVE CALIFORNIANS THE BENEFIT OF
CHEAPER CANADIAN SHORTTERM PRICES SPARKED AN ANGRY OUTCRY AMONG CANADIAN
PRODUCERS AND GOVERNMENT OFFICIALS PG&E SAID IT RECENTLY OFFERED SUPPLIERS
200 MILLION TO ENCOURAGE THEM TO TEAR UP THEIR EXISTING CONTRACTS THAT IS
UP FROM A PREVIOUS OFFER OF ABOUT 150 MILLION ONCE THE CONTRACTS ARE
CANCELED MORE THAN ONE BILLION CUBIC FEET OF GAS A DAY WILL FLOW FROM
CANADA TO CALIFORNIA UNDER A VARIETY OF NEW MORE FLEXIBLE ARRANGEMENTS 
INCLUDING SHORTTERM SALES BETWEEN PRODUCERS AND END USERS AND BROKERED
TRANSACTIONS

A PG&E SPOKESMAN SAID THE COMPANY PLANS TO CONTINUE DISCUSSIONS WITH
SUPPLIERS THAT HAVEN'T SIGNED THE AGREEMENT

UNDER THE COMMISSION'S DECISION PG&E AND ITS ALBERTA & SOUTHERN GAS CO
UNIT WERE GIVEN UNTIL OCT 1 TO DROP THE CONTESTED LONGTERM CONTRACTS THE
SAN FRANCISCO UTILITY SAID YESTERDAY THAT IT PLANNED TO CLOSE EXISTING
CONTRACTS BY MIDSEPTEMBER AND REPLACE THEM WITH TRANSITIONAL ARRANGEMENTS
PENDING FINAL CANADIAN AND US REGULATORY APPROVALS THE INTERIM
ARRANGEMENTS AREN'T EXPECTED TO INTERRUPT SUPPLIES COMPANY OFFICIALS HAVE
SAID THAT REGULATORY APPROVALS INCLUDING A GREEN LIGHT FROM PROVINCIAL
OFFICIALS AND CANADA'S NATIONAL ENERGY BOARD COULD TAKE UNTIL MAY 1994

IT LOOKS LIKE WHAT WE'RE SEEING HERE IS A RESOLUTION OF A THREEYEAR
BATTLE OVER THE FUTURE COURSE OF GAS SALES DAVID MANNING OF ALBERTA
ENERGY MINISTER'S OFFICE SAID IN AN INTERVIEW THE POLITICAL WILL IS THERE
TO FACILITATE OPEN MARKETS

THE NEW ARRANGEMENTS COULD HAVE A MAJOR IMPACT ON TWO OTHER IMPORTANT ISSUES
CONFRONTING PG&E UNDER PRESSURE FROM CALIFORNIA REGULATORS THE UTILITY
PREVIOUSLY ANNOUNCED ITS INTENTION TO SELL ALBERTA & SOUTHERN GAS AND
ANOTHER UNIT PACIFIC GAS TRANSMISSION CO TO CANADIAN INTERESTS THOSE
SALES ARE CONTINGENT ON RESTRUCTURING THE SUPPLY ARRANGEMENTS

IN ADDITION CALIFORNIA REGULATORS ARE CONSIDERING CLAIMS BY CONSUMER
ADVOCATES AND SOME COMMISSION STAFFERS THAT PG&E OVERPAID FOR GAS SUPPLIES
AND PASSED ON ABOUT 400 MILLION OF THOSE COSTS TO ITS CUSTOMERS FROM 1988
TO 1991 AN ADMINISTRATIVE LAW JUDGE IS EXPECTED TO ISSUE AN OPINION LATER
THIS YEAR AND THE FULL COMMISSION IS EXPECTED TO TAKE UP THE MATTER
AFTERWARD 9308310056 930831 MUTUAL FUNDS MUTUAL FUND INFLOWS SURGE
PACED BY BONDS  BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL
STREET JOURNAL

THE DOG DAYS OF SUMMER AREN'T SLOWING THE STAMPEDE INTO MUTUAL FUNDS

A TRADE GROUP REPORTED THAT BONDFUND INFLOWS IN JULY LEAPED 22 TO A
MONTHLY RECORD OF 13 BILLION FROM JUNE AND STOCKFUND INFLOWS ROSE 5 TO
97 BILLION FROM THE PREVIOUS MONTH

INTERNATIONAL FUNDS ARE SIPHONING OFF A GROWING AMOUNT OF THE MONEY
ACCOUNTING FOR A QUARTER OF STOCKFUND CASH FLOW IN JULY AND POSSIBLY MORE
IN AUGUST

INVESTORS ARE HAVING A SUMMER ROMANCE WITH INTERNATIONAL EQUITIES SAYS
BRUCE SPECA MANAGING DIRECTOR AT TNE FUND GROUP A SUBSIDIARY OF NEW
ENGLAND LIFE INSURANCE CO FANNING THE FLAMES ARE THE DOUBLEDIGIT RETURNS
IN MANY FOREIGNSTOCK MUTUAL FUNDS SO FAR THIS YEAR

INVESTORS ARE ACCELERATING THEIR FLIGHT INTO STOCK AND BOND MUTUAL FUNDS AS
LOW YIELDS DRIVE THEM OUT OF BANK DEPOSITS AND MONEY MARKET FUNDS FUND
EXECUTIVES SAY OTHER BIG SELLERS ARE BALANCED FUNDS WHICH INVEST IN BOTH
STOCKS AND BONDS AND MUNICIPAL BOND FUNDS

AUGUST IS ALMOST A BLOWOUT SAYS JON FOSSEL CHAIRMAN AND CHIEF EXECUTIVE
OF OPPENHEIMER MANAGEMENT CORP IT'S SUPPOSED TO BE THE SUMMER DOLDRUMS

SUCH FUND ORGANIZATIONS AS FIDELITY INVESTMENTS THE LARGEST FUND GROUP AND
OPPENHEIMER MANAGEMENT SAY THAT AUGUST HAS BEEN THE BEST MONTH ON RECORD FOR
CASH INFLOWS INTO THEIR MUTUAL FUNDS IT IS UNUSUAL FOR JULY AND AUGUST TO
BE STRONG MONTHS USUALLY THE FLOW OF CASH INTO FUNDS DROPS OFF IN THE
SUMMERTIME

THE CASH FLOW FIGURES REFLECT NEW SALES OF FUNDS MINUS WITHDRAWALS BY
SHAREHOLDERS AND THE NET RESULT OF SWITCHES AMONG FUNDS REINVESTED
DIVIDENDS ARE EXCLUDED

THE 13 BILLION INFLOW INTO BOND FUNDS EXCEEDS A PRIOR ONEMONTH RECORD OF
128 BILLION SET IN JANUARY 1987 ACCORDING TO THE INVESTMENT COMPANY
INSTITUTE A MUTUAL FUND TRADE GROUP BUT NOT EVERY PENNY OF THE 13 BILLION
WENT TO BUY BONDS THE TOTAL INCLUDES INFLOWS INTO HYBRID FUNDS SUCH AS
BALANCED FUNDS AND ASSET ALLOCATION FUNDS WHICH RECENTLY RECEIVED HEAVY
CASH FLOWS BALANCED FUNDS INVESTING IN STOCKS AND BONDS RECEIVED 14
BILLION IN CASH IN JULY

IN THE PAST THESE TYPES OF FUNDS DIDN'T DECLINE AS SEVERELY AS STOCK FUNDS
DURING BEAR MARKETS BECAUSE THEY ARE CUSHIONED BY THEIR HOLDINGS OF BONDS
HOWEVER SOME ANALYSTS SAY THE BOND MARKET CURRENTLY LOOKS AS RISKY AS THE
STOCK MARKET

INVESTORS IN THESE HOTSELLING STOCKANDBOND FUNDS TEND TO BE YOUNGER
SLIGHTLY MORE NOVICE INVESTORS MANY OF WHOM ARE MAKING THEIR FIRST FORAY
INTO THE STOCK MARKET SAYS NEAL LITVACK AN EXECUTIVE VICE PRESIDENT AT
BOSTONBASED FIDELITY SUCH TYPES OF FUNDS WERE THE BESTSELLERS AT FIDELITY
IN AUGUST MR LITVACK SAYS

MONEY FLOWED INTO STOCK FUNDS AT SUCH A RAPID RATE IN JULY THAT MANAGERS
COULDN'T PUT IT ALL TO WORK THE LEVEL OF CASH HOLDINGS AMONG STOCK FUNDS
ROSE TO 93 OF ASSETS IN JULY FROM 91 IN JUNE BULLS ON THE STOCK MARKET
ARGUE THAT LARGE HOLDINGS OF CASH BY FUNDS REPRESENT FRESH BUYING POWER THAT
COULD DRIVE STOCKS HIGHER

BUT SOME BEARS NOTE THAT FUND MANAGERS WITH LARGE HOLDINGS OF CASH HAVE USED
FUTURES AND DERIVATIVES TO GAIN EXPOSURE TO THE STOCK MARKET THESE
INSTRUMENTS WHILE NOT ACTUALLY STOCKS THEMSELVES MOVE IN LINE WITH STOCK
PRICES GIVING FUNDS A SORT OF ARTIFICIAL INVESTMENT IN THE MARKET WHILE
THE EXTENT OF THE PRACTICE ISN'T KNOWN THE WIDESPREAD USE OF FUTURES COULD
MEAN THAT MUTUAL FUNDS ARE LESS APT TO BE CUSHIONED BY THEIR CASH HOLDINGS
THAN THEY MIGHT APPEAR

INVESTORS CONTINUED TO PUSH CASH INTO DOMESTIC STOCK FUNDS BUT THOSE
INVESTORS MAKING EXCHANGES MOVING THEIR MONEY INTO OTHER FUNDS IN THE
SAME GROUP TENDED TO MOVE OUT OF US STOCK FUNDS AND INTO INTERNATIONAL
FUNDS ACCORDING TO STRATEGIC INSIGHT A NEW YORK CONSULTING FIRM

THE MOVE TO INTERNATIONAL STOCK FUNDS ACCELERATED IN AUGUST SOME FUND
EXECUTIVES SAY CASH FLOW INTO FOREIGN EQUITY FUNDS DOUBLED AT VANGUARD
GROUP AND WAS SHARPLY HIGHER IN AUGUST AT SUCH GROUPS AS T ROWE PRICE
ASSOCIATES INC MARSH & MCLENNAN'S PUTNAM INVESTMENTS SUBSIDIARY SCUDDER
STEVENS & CLARK INC AND TNE

FIDELITY SAW ITS CASH FLOWS INTO INTERNATIONAL STOCK FUNDS TRIPLE IN AUGUST
WITH PARTICULAR EMPHASIS ON EMERGING MARKETS OF DEVELOPING COUNTRIES
FIDELITY'S EMERGING MARKETS FUND DOUBLED IN SIZE THIS MONTH TO 300 MILLION
IN ASSETS FIDELITY'S MR LITVACK SAYS INVESTORS PUTTING THEIR MONEY INTO
INTERNATIONAL FUNDS TEND TO BE MORE SOPHISTICATED AND MORE AGGRESSIVE THAN
THOSE PUTTING MONEY INTO THE STOCKANDBOND FUNDS

EVEN INVESTORS IN DOMESTIC STOCK FUNDS ARE GETTING PART OF THEIR MONEY
INVESTED OVERSEAS AS US FUND MANAGERS DECIDE THAT FOREIGN STOCKS ARE
CHEAPER OR MORE PROMISING THAN US STOCKS HOWEVER IT IS UNCLEAR WHETHER
INVESTORS IN US STOCK FUNDS KNOW THE DEGREE TO WHICH THEY ARE ACTUALLY
INVESTED OVERSEAS

INTERNATIONAL BOND FUNDS ALSO ARE ATTRACTING A LOT OF CASH THIS SUMMER

MUNICIPAL BOND FUNDS CONTINUE TO DRAW STRONG FLOWS OF CASH MUNICIPAL FUND
SALES HAVE BEEN STRONG SINCE THE ELECTION LAST FALL BECAUSE INVESTORS
ANTICIPATED HIGHER TAXES

SOME FIRMS SAID INTEREST IN JUNK BOND FUNDS APPEARS TO HAVE COOLED SOME
MARKET TIMERS HAVE SUGGESTED SWITCHING OUT OF HIGHYIELD BOND FUNDS SAYS A
SPOKESMAN FOR MASSACHUSETTS FINANCIAL SERVICES A SUBSIDIARY OF SUN LIFE
ASSURANCE CO OF CANADA LEADING TO REDEMPTIONS AT SOME HIGHYIELD FUNDS

BUT SALES OF STRATEGIC INCOME FUNDS WHICH INVEST IN JUNK BONDS US
GOVERNMENT BONDS AND FOREIGN BONDS WERE STRONG AT SUCH GROUPS AS
OPPENHEIMER AND PUTNAM THE FUNDS ATTEMPT TO PAY HIGH YIELDS BUT WITH LESS
EXTREME FLUCTUATIONS IN PRICE THAN JUNK BOND FUNDS BY DIVERSIFYING INTO
THREE DIFFERENT CLASSES OF BONDS

SOME FUND EXECUTIVES THINK SEPTEMBER'S FUND INFLOWS WON'T MATCH AUGUST'S
CASH FLOW BECAUSE MORE FUND SHAREHOLDERS WILL BE WITHDRAWING MONEY TO COVER
TUITION AND ESTIMATED TAX PAYMENTS

IN A MONTHLY SURVEY CONDUCTED IN AUGUST BY THE UNIVERSITY OF MICHIGAN FOR
FIDELITY INVESTORS PROFESSED SHARPLY HIGHER INTENTIONS TO BUY STOCK AND
BOND FUNDS IN THE NEXT THREE MONTHS BUT INVESTORS IN THE POLL HAVEN'T
CHANGED THEIR OUTLOOK FOR THE ECONOMY OR THEIR OWN PERSONAL FINANCIAL
CONDITION SINCE JULY 9308310055 930831 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 3/16 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED
RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1
MILLION OR MORE SOURCE PREBON YAMANE USA INC

DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE
FEDERAL RESERVE BANKS

CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL
SOURCE TELERATE SYSTEMS INC

COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30
TO 44 DAYS 311 45 TO 89 DAYS 312 90 TO 149 DAYS 321 150 TO 179
DAYS 323 180 TO 229 DAYS 330 230 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 313 30 DAYS 315 60 DAYS 316 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 322 SIX MONTHS

BANKERS ACCEPTANCES 306 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

FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 4 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 664 60 DAYS 671 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 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
9308310054 930831 WHAT'S NEWS  WORLDWIDE

THE ISRAELI CABINET APPROVED A SELFRULE PLAN FOR PALESTINIANS

THE CABINET'S ACTION WAS REGARDED AS THE FIRST SIGNIFICANT SIGN OF PROGRESS
IN THE MIDEAST PEACE TALKS SINCE THEY BEGAN 22 MONTHS AGO THE CABINET IN A
160 VOTE WITH TWO ABSTENTIONS APPROVED A PLAN TO START GIVING PALESTINIANS
AUTONOMY BY TURNING GOVERNING AUTHORITY OVER TO THEM IN THE OCCUPIED GAZA
STRIP AND THE WEST BANK TOWN OF JERICHO NEGOTIATORS WILL RETURN TO TALKS IN
WASHINGTON TODAY TO WORK OUT DETAILS AND TO DRAW UP A STATEMENT OF
PRINCIPLES EXPLAINING HOW AUTONOMY WOULD WORK ELSEWHERE IN THE WEST BANK

THE PLAN HAS DRAWN FIERCE OPPOSITION FROM SOME ISRAELIS AND PALESTINIANS AS
THE CABINET MET 4000 JEWISH SETTLERS AND RIGHTWING ACTIVISTS GATHERED
OUTSIDE HURLING EGGS AND STONES AND CALLING PRIME MINISTER RABIN A
TRAITOR

ELITE US TROOPS IN MOGADISHU STORMED TWO AID COMPOUNDS IN THE SOMALI
CAPITAL AND DETAINED FOREIGN UN STAFF WORKERS IN A BUNGLED ATTEMPT TO HIT
BACK AT FUGITIVE CLAN LEADER AIDID A CLINTON ADMINISTRATION OFFICIAL SAID
THE US TROOPS ACTED AFTER INTELLIGENCE DATA INDICATED ONE BUILDING MIGHT
HARBOR AIDID LIEUTENANTS

THOUSANDS OF RESIDENTS AND TOURISTS FLED INLAND AS HURRICANE EMILY HEADED
TOWARD NORTH CAROLINA'S LOWLYING SANDY OUTER BANKS ISLAND CHAIN HURRICANE
WARNINGS WERE POSTED FROM THE CENTRAL NORTH CAROLINA COAST NORTHWARD TO
VIRGINIA METEOROLOGISTS PREDICTED THAT THE STORM COULD HIT LAND AS EARLY AS
THIS MORNING

PRESIDENT CLINTON LISTED THREE CONDITIONS FOR SENDING US TROOPS TO BOSNIA
SAYING HE WOULD HAVE TO BE CONVINCED THAT ANY PEACE SETTLEMENT WAS FAIR
ENFORCEABLE AND SUPPORTED BY BOSNIA'S MUSLIM GOVERNMENT IN GENEVA THE
THREE BOSNIAN FACTIONS DELAYED RESUMPTION OF PEACE TALKS UNTIL TODAY

ROBERT MALVAL WAS SWORN IN AS HAITI'S PRIME MINISTER DURING A CEREMONY IN
WASHINGTON AND PLEDGED TO WORK FOR NATIONAL RECONCILIATION EXILED PRESIDENT
JEANBERTRAND ARISTIDE WHO IS TO BE RESTORED TO POWER OCT 30 OFFICIATED
AT THE SWEARINGIN

RUSSIA AND LITHUANIA REACHED A NEW AGREEMENT ON REMOVING 2500 RUSSIAN
TROOPS FROM THE BALTIC COUNTRY BREAKING A DEADLOCK THAT COULD HAVE PROMPTED
THE US TO CUT OFF SOME AID TO MOSCOW LITHUANIA'S PRESIDENT SAID THE
TROOPS WOULD WITHDRAW BY TODAY

THE SOVIET UNION CAN'T BE BLAMED FOR SHOOTING DOWN A KOREAN AIR LINES PLANE
IN 1983 AND KILLING THE 269 PEOPLE ABOARD ACCORDING TO THE FIRST RUSSIAN
PANEL TO PROBE THE DISASTER THE PANEL FAULTED THE KAL CREW FOR STRAYING OFF
COURSE OVER SOVIET MILITARY SITES THE FINDINGS LARGELY AGREED WITH THOSE
RELEASED BY INTERNATIONAL AVIATION OFFICIALS

THE MISSISSIPPI RIVER CARRIED SURPRISINGLY HIGH CONCENTRATIONS OF FARM
CHEMICALS DURING THIS SUMMER'S FLOODS GOVERNMENT SCIENTISTS REPORTED THE
US GEOLOGICAL SURVEY SAID WATER SAMPLES COLLECTED AT SIX SITES CONTAINED
CONCENTRATIONS OF ATRAZINE A WEED KILLER THAT MATCHED OR EXCEEDED SAMPLES
FROM EARLIER YEARS

THE AFRICAN NATIONAL CONGRESS ISSUED AN APOLOGY FOR RIGHTS ABUSES AT ITS
DETENTION CAMPS IN AFRICA IN THE 1970S AND 1980S BUT RULED OUT THE
IMMEDIATE PUNISHMENT OF THOSE RESPONSIBLE OR COMPENSATION FOR VICTIMS
SEPARATELY THE BLACK SOUTH AFRICAN GROUP NAMED THABO MBEKI TO BE
HEIRAPPARENT TO NELSON MANDELA ITS PRESIDENT

A THWARTED PRESIDENTIAL CONTENDER URGED THE UN TO IMPOSE SANCTIONS ON
NIGERIA TO PROTEST FORMER RULER BABANGIDA'S APPOINTMENT OF AN INTERIM
GOVERNMENT ABIOLA WHO WAS DENIED THE PRESIDENCY AFTER WINNING A VOTE SAID
IN WASHINGTON HE WOULDN'T RETURN TO LAGOS THIS WEEK AS PLANNED CITING A
STRIKE THAT HAS MADE CONDITIONS THERE UNSETTLED

AT LEAST 21 WERE SHOT DEAD IN A RIO DE JANEIRO SHANTYTOWN BY 20 HOODED
GUNMEN ARMED WITH AUTOMATIC WEAPONS SHOTGUNS AND GRENADES THE ATTACK CAME
TWO DAYS AFTER FOUR POLICE OFFICERS WERE KILLED IN AN AMBUSH OFFICIALS IN
THE BRAZILIAN CITY SAID THE MASSACRE COULD HAVE BEEN A RETALIATORY ACT OF
VENGEANCE BY POLICE

A CHINESE JOURNALIST WAS SENTENCED TO LIFE IN PRISON FOR SELLING STATE
SECRETS TO A HONG KONG REPORTER THE DOCUMENT THAT WAS SOLD FOR NEARLY 900
LAST OCTOBER WAS A COPY OF A SPEECH BY COMMUNIST PARTY CHIEF JIANG ZEMIN A
HONG KONG NEWSPAPER PRINTED THE SPEECH A WEEK BEFORE IT WAS GIVEN
9308310052 930831 INTERNATIONAL FORD GERMAN UNIT REPORTS 82 DROP 
IN FIRSTHALF PROFIT  BY AUDREY CHOI STAFF REPORTER OF THE WALL
STREET JOURNAJ

COLOGNE GERMANY FORDWERKE AG THE GERMAN OPERATING UNIT OF FORD MOTOR
CO OF THE US SAID FIRSTHALF PROFIT FELL 82 TO 97 MILLION MARKS 583
MILLION FROM 525 MILLION MARKS A YEAR EARLIER

THE COMPANY ATTRIBUTED THE DROP PRIMARILY TO THE WEAK GERMAN ECONOMY AND THE
EUROPEAN EXCHANGERATE TURBULENCE WHICH HAS LED TO A RELATIVE STRENGTHENING
OF THE MARK TO DEAL WITH THE STRONGER MARK FORDWERKE ALSO SAID IT INTENDS
TO REDUCE THE PROPORTION OF ITS EXPENSES BILLED IN THE GERMAN CURRENCY
ESSENTIALLY BECAUSE BUYING PARTS WITH MARKS IS AN EXPENSIVE PROCUREMENT
METHOD

CURRENTLY MORE THAN 40 OF THE AUTO MAKER'S PARTS ARE BOUGHT WITH MARKS THE
GERMAN OPERATING UNIT HOPES TO REDUCE THAT PROPORTION TO 35 A FORDWERKE
SPOKESMAN STRESSED THAT THIS DIDN'T NECESSARILY MEAN AN ABSOLUTE REDUCTION
OF ORDERS GIVEN TO GERMAN SUPPLIERS BUT COULD PRIMARILY BE ACHIEVED BY A
CHANGE IN BILLING PROCEDURES FOR TRANSACTIONS OUTSIDE OF GERMANY

FORDWERKE PREVIOUSLY REPORTED THAT REVENUE IN THE FIRST HALF OF 1993 FELL
BY 11 TO 115 BILLION MARKS FROM 129 BILLION MARKS A YEAR BEFORE WHILE
PRODUCTION DECLINED BY 15 TO 458000 UNITS FROM 539000 UNITS THE NUMBER
OF EMPLOYEES AT FORDWERKE FELL BY 3922 TO 43931

SECONDHALF PROFIT SHOULD IMPROVE THANKS TO FULL DISTRIBUTION OF THE
MONDEO A SEDAN MODEL LAUNCHED IN EUROPE IN MARCH BUT FULLYEAR RESULTS
WILL HINGE ON THE DEVELOPMENT OF THE EUROPEAN ECONOMY AND THE DEGREE OF
FURTHER FOREIGNEXCHANGE FLUCTUATIONS THE GERMAN UNIT PREDICTED THAT ITS
DOMESTIC CAR SALES WILL RISE IN THE SECOND HALF OF THE YEAR IN THE FIRST
SIX MONTHS ITS SHARE OF THE DOMESTIC MARKET SANK TO 91 FROM 96 IN 1992
THE COMPANY REPORTED

FORDWERKE'S FINANCIAL RESULTS COME NEARLY A WEEK AFTER THE OUSTER OF JOHN
E HARDIMAN 59 YEARS OLD WHO HAD BEEN FORDWERKE'S CHAIRMAN SINCE 1989
MR HARDIMAN HAS INDICATED THAT HE WILL FIGHT HIS REMOVAL HIS REPLACEMENT
IS ALBERT CASPERS 60 WHO ALSO CONTINUES IN HIS POST AS FORD OF EUROPE'S
VICE PRESIDENT OF ENGINEERING 9308310051 930831 WHAT'S NEWS  BUSINESS
AND FINANCE

CNA FINANCIAL AND CHUBB HAVE AGREED TO PAY AN ESTIMATED 3 BILLION FOR
ASBESTOS CLAIMS AGAINST FIBREBOARD IN AN ARRANGEMENT THAT WOULD BE ONE OF
THE LARGEST PRODUCTLIABILITY SETTLEMENTS IN US HISTORY THE ANNOUNCEMENT
OF THE PACT WHICH WILL COVER CLAIMS OF AN ESTIMATED 325000 VICTIMS CAUSED
FIBREBOARD'S STOCK TO SURGE 475 OR 306 TO 2025

THE UAW SELECTED FORD AS ITS TARGET FOR NEGOTIATING A NEW CONTRACT DELAYING
AN INEVITABLE CONFRONTATION WITH GENERAL MOTORS HOWEVER THE MOVE RAISES
THE POSSIBILITY THAT THE UNION AND GM COULD NEGOTIATE A PATTERNBREAKING
AGREEMENT LATER

BONDFUND INFLOWS LEAPED 22 IN JULY FROM JUNE TO A MONTHLY RECORD OF 13
BILLION WHILE JULY'S STOCKFUND INFLOWS ROSE 5 TO 97 BILLION THE GAINS
RESULT FROM INVESTORS ACCELERATING THEIR FLIGHT FROM LOWYIELDING BANK
DEPOSITS AND MONEYMARKET FUNDS

QUALMED AND HN MANAGEMENT'S HEALTH NET SUBSIDIARY PLAN TO END THEIR LEGAL
BATTLE AND MERGE THEIR MANAGED CARE NETWORKS IN A TRANSACTION WITH AN
ESTIMATED VALUE OF 775 MILLION

LIMITED ANNOUNCED A MAJOR RESTRUCTURING THAT INCLUDES SHRINKING OR CLOSING
ABOUT 360 LIMITED AND LERNER STORES BY THE END OF 1995 AND BUYING BACK AS
MUCH AS 500 MILLION OR ABOUT 6 OF THE RETAILER'S SHARES

NATIONSBANK'S PLAN TO SELL ANNUITIES NATIONALLY WAS SHARPLY CURTAILED BY A
FEDERAL APPEALS COURT IN A RULING THAT COULD SLOW THE EXPANSION OF BANKS
INTO A MAJOR NEW PRODUCT LINE

THE BOND MARKET'S RALLY RESUMED AS THE 30YEAR TREASURY'S YIELD FELL TO
611 STOCKS POSTED MODEST GAINS WITH SOME NEW RECORDS AS THE DOW JONES
INDUSTRIAL AVERAGE ROSE 336 TO 364399 THE DOLLAR EDGED HIGHER

THE OIL INDUSTRY WOULD HAVE TO SPEND A MINIMUM OF 166 BILLION OVER 20 YEARS
TO MEET ENVIRONMENTAL RULES A STUDY SAID ON AN ANNUAL BASIS THAT AMOUNTS
TO TWICE THE YEARLY ENVIRONMENTAL OUTLAYS OF THE INDUSTRY OVER THE SECOND
HALF OF THE LAST DECADE

CLINTON'S DEFICITREDUCTION PLAN WAS WELCOMED BY THE IMF BUT THE FUND SAID
THE PRESIDENT'S HEALTHCARE PLAN MUST REDUCE THE DEFICIT FURTHER

TWO HUNDRED TOPPAID CFOS RECEIVED AVERAGE 25 COMPENSATION INCREASES LAST
YEAR AS COMPANIES RECOGNIZED THEIR BROADER TALENTS AND MOVED TO KEEP THE
HEADHUNTERS AT BAY

CLINTON WOULD ACCEPT THE UNUSUAL PROCEDURE OF ALLOWING THE SENATE TO VOTE
BEFORE THE MORE RELUCTANT HOUSE TO HELP GAIN APPROVAL OF NAFTA

TOYOTA NISSAN AND HONDA FACE CREDITRATING DOWNGRADES FROM S&P WHICH CITED
A SHARP WORSENING OF ALREADY DIFFICULT INDUSTRY CONDITIONS

GE'S CNBC CABLE NETWORK NAMED AS ITS PRESIDENT ROGER AILES THE CONSERVATIVE
REPUBLICAN MEDIA STRATEGIST WHO ADVISED THREE PRESIDENTS

PRODUCERS OF WORKSTATIONS THAT RUN ON THE UNIX SYSTEM HAVE AGREED TO
STREAMLINE A NOWFRAGMENTED SYSTEM OF PROGRAMMING IN AN EFFORT TO THWART
COMPETITION FROM MICROSOFT

TOKYO STOCKS ROSE WITH THE NIKKEI INDEX CLIMBING 12101 TO 2091269
DESPITE A LACK OF FRESH BULLISH NEWS PARIS AND FRANKFURT SHARES ALSO
GAINED

BONDS LEHMAN BROTHERS TREASURY INDEX 557209 UP 1445

COMMODITIES OIL 1873 A BARREL OFF 7 CENTS DOW JONES FUTURES INDEX
12734 OFF 044 SPOT INDEX 12385 UP 073

DOLLAR 10380 YEN UP 005 16724 MARKS UP 0008 9308310050 930831
WHO'S NEWS VISA USA'S HELLER QUITS AS PRESIDENT AND CHIEF

SAN FRANCISCO AP H ROBERT HELLER RESIGNED AS PRESIDENT AND CHIEF
EXECUTIVE OFFICER OF VISA USA SAYING HE WOULD PURSUE OTHER INTERESTS

I PLAN TO COMBINE MY KNOWLEDGE AND EXPERIENCE IN BUSINESS GOVERNMENT AND
EDUCATION TO FURTHER ADVANCE THE ISSUES FACING THE FINANCIAL SERVICES AND
BANKING INDUSTRIES MR HELLER SAID IN A STATEMENT

MRHELLER 53 YEARS OLD JOINED VISA IN 1989 AND WAS NAMED PRESIDENT IN
1991

CARL PASCARELLA 50 PRESIDENT OF THE COMPANY'S ASIA PACIFIC DIVISION
SUCCEEDS MR HELLER 9308310049 930831 POLITICS & POLICY CLINTON MAY
ATTEMPT TO AID TRADE PACT BY HAVING SENATE VOTE BEFORE THE HOUSE  
BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON PRESIDENT CLINTON SAID THAT TO HELP HIS ENDANGERED PRIORITY 
THE NORTH AMERICAN FREE TRADE AGREEMENT HE WOULD BE WILLING TO ACCEPT THE
UNUSUAL PROCEDURE OF ALLOWING THE SENATE TO VOTE BEFORE THE MORE RELUCTANT
HOUSE

THE WHITE HOUSE ALSO IS MOVING TOWARD ASKING A HIGHPROFILE REPUBLICAN TO
HELP IT PASS THE TRADE PACT WITH FORMER MINNESOTA REP BILL FRENZEL AS THE
LIKELY CHOICE

IN A NEWS CONFERENCE YESTERDAY THE PRESIDENT ALSO ACKNOWLEDGED THAT THERE
WERE PROBLEMS WITH THE LATEST BOTCHED AMERICAN ASSAULT ON A SOMALIAN
WARLORD WHICH RESULTED INSTEAD IN AN ATTACK ON A UNITED NATIONS OUTPOST IN
ADDITION MR CLINTON DELINEATED MORE PRECISE RESTRICTIVE CRITERIA FOR
SENDING US FORCES TO BOSNIA

MR CLINTON MADE CLEAR HE REMAINS COMMITTED TO APPROVING THE FREETRADE
ACCORD WHICH WOULD GRADUALLY DISMANTLE TRADE BARRIERS AMONG THE US
CANADA AND MEXICO BUT HE ALSO MADE A BOW TO THE DIFFICULTY OF GETTING THE
PACT APPROVED BY CONGRESS ESPECIALLY THE HOUSE BY SAYING HE WAS OPEN TO
A SUGGESTION BY SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS TO LET THE
SENATE VOTE FIRST

USUALLY TRADE MEASURES ORIGINATE IN THE HOUSE BUT VOTECOUNTERS
ACKNOWLEDGE THAT GIVEN THE LARGE DEMOCRATIC OPPOSITION TO THE ACCORD THERE
AREN'T YET ENOUGH VOTES THERE TO APPROVE NAFTA THE SENATE IN CONTRAST IS
FAR MORE LIKELY TO RATIFY IT SO WHITE HOUSE STRATEGISTS BELIEVE THAT SENATE
APPROVAL OF THE PACT WOULD PUT PRESSURE ON THE HOUSE TO PASS IT

A DECISION HASN'T BEEN MADE MR CLINTON SAID BUT AIDES SAID THE WHITE
HOUSE IS MOVING INTO HIGH GEAR TO APPROVE THE MEASURE CALLS WERE MADE TO
DEMOCRATIC AND REPUBLICAN SUPPORTERS OF NAFTA YESTERDAY AND PLANS ARE BEING
LAID TO ORGANIZE PRESSURE FROM BUSINESSES NATIONWIDE

ASKING FOR MR FRENZEL'S HELP WOULD BE A MAJOR BOOST TO THE EFFORT FROM THE
GOP POINT OF VIEW MR FRENZEL WHO WORKS AT THE BROOKINGS INSTITUTION A
THINK TANK HERE WAS A RESPECTED MEMBER OF THE POWERFUL HOUSE WAYS AND MEANS
COMMITTEE AND CONSIDERED AN ARTICULATE LEADER IN CONGRESS ON TRADE MATTERS

MR CLINTON MOVED TO ALLAY THE FEARS OF DEMOCRATS AS WELL HE TOLD REPORTERS
THAT HE WAS WORKING ON A WORKERTRAINING BILL THAT WOULD ACCOMPANY THE TRADE
PACT LEGISLATION FEAR OF JOB LOSSES IS THE SINGLE LARGEST STUMBLING BLOCK
TO GAINING SIGNIFICANT DEMOCRATIC SUPPORT FOR THE MEASURE

THE PRESIDENT EVEN WORKED TO MOLLIFY THE OPPOSITION TO THE PACT OF THE
LEADERS OF FIVE CARIBBEAN NATIONS WHO VISITED WITH HIM YESTERDAY HE
APPOINTED US TRADE REPRESENTATIVE MICKEY KANTOR TO CONSULT WITH THEM ON
NEW MEASURES TO INCREASE REGIONAL TRADE AND TO SEE WHETHER WE CAN PROVIDE
SOME ASSURANCES THAT THERE WILL NOT BE A DISADVANTAGE TO THE CARIBBEAN
NATIONS FROM THE TRADE PACT

ON SOMALIA MR CLINTON STOOD FIRM AGAINST CRITICISM THAT THE US HAS
STAYED TOO LONG WITHOUT A CLEAR POLICY FOR DEPARTING WE DID GO THERE TO
STOP THE STARVATION AND THE VIOLENCE AND THE BLOODSHED BUT IT'S ALSO TRUE
THAT THE ABSENCE OF ORDER GAVE RISE TO ALL THOSE PROBLEMS HE SAID AND SO
WE'RE STILL TRYING TO FULFILL OUR ORIGINAL MISSION IN SOMALIA

HE ALSO DECLINED TO TAKE FULL RESPONSIBILITY FOR THE EMBARRASSMENT OVER THE
ASSAULT ON RELIEF WORKERS THE UN HAD SET THE OBJECTIVE OF CAPTURING
SOMALI WARLORD MOHAMED AIDID MR CLINTON SAID AND THEY ASKED US FOR OUR
HELP IN THAT REGARD BUT HE ADDED I UNDERSTAND THE PROBLEMS WITH THIS
AND SAID HE WAS OPEN TO OTHER SUGGESTIONS ABOUT HOW TO GET MR AIDID

A PENTAGON OFFICIAL CONCEDED THERE WERE PROBLEMS WITH INTELLIGENCE BUT HE
ADDED THAT THE MISSION AIMED TO MAKE SOUTH MOGADISHU SAFER AND THAT THE
PENTAGON EXPECTS SIMILAR MISSIONS IN THE FUTURE AS EVENTS OCCUR AND THEY
GET TIPS THEY'LL BE TAKING ACTION HE SAID

OTHERS IN THE PENTAGON HAVE SAID THAT A MAJOR PROBLEM IN PURSUING MR AIDID
BLAMED FOR THE KILLINGS OF 24 PAKISTANI PEACEKEEPERS IN JUNE AND OF FOUR
US TROOPS EARLIER THIS MONTH IS THAT HE HAS TAKEN TO SLEEPING IN MOSQUES
BOTH THE UN AND THE US ARE RELUCTANT TO SEND TROOPS INTO THEM

ON BOSNIA MR CLINTON HAS SAID THAT HE IS PREPARED TO SEND AMERICAN
PEACEKEEPERS TO HELP POLICE ANY PEACE AGREEMENT TO END THE CIVIL WAR BUT IN
HIS LATEST REMARKS HE SEEMED TO VOICE SOME RESERVATIONS AND MADE CLEAR THAT
HE WOULDN'T COMMIT TO BACKING ANY SETTLEMENT

HE SET THREE CONDITIONS FOR A PACT TO WARRANT AMERICAN INTERVENTION THAT IT
BE FAIR EMBRACED BY THE BOSNIAN PARLIAMENT AND ENFORCEABLE IT ISN'T CLEAR
THAT ANY OF THE CONDITIONS HAS BEEN MET A PLAN TO PARTITION BOSNIA INTO
SERBIAN CROATIAN AND MUSLIM ENCLAVES HAS BEEN DRAWN UP IN PEACE TALKS BUT
BOSNIA'S MUSLIM PARLIAMENT DECLARED OVER THE WEEKEND THAT IT ISN'T FAIR TO
MUSLIMS THEY DEMANDED CHANGES TO EXPAND THE PROPOSED MUSLIM ENCLAVE AND
IMPROVE ITS ACCESS TO THE SEA

THERE WILL BE AN ATTEMPT IN UNSPONSORED NEGOTIATIONS AMONG THE THREE
PARTIES IN GENEVA TO RESUME BARGAINING OVER THE PEACE PLAN BUT THOUGH TALKS
WERE SCHEDULED TO RESUME YESTERDAY THEY WERE PUT OFF UNTIL TODAY
9308310048 930831 HEALTH SCHOOLBASED HEALTH INSURANCE FOR KIDS 
CATCHES ON AS WAY TO COVER UNINSURED  BY SARAH LUBMAN STAFF
REPORTER OF THE WALL STREET JOURNAL

SEVENYEAROLD ANDREW ZABLO ISN'T COVERED UNDER HIS FATHER'S INSURANCE BUT
WHEN HE NEEDED EMERGENCY TREATMENT RECENTLY FOR AN ASTHMA ATTACK THE TOTAL
COST INCLUDING MEDICATION WAS 3

THE PROVIDER A PILOT HEALTHINSURANCE PLAN AVAILABLE THROUGH HIS HOLLY
HILL FLA SCHOOL

I'M NOT AFRAID TO TAKE HIM TO THE DOCTOR ANYMORE SAYS PATRICIA ZABLO
ANDREW'S MOTHER WHO ONCE ROUTINELY SHELLED OUT 150 A MONTH FOR MEDICATION
AND UP TO 135 A MONTH FOR OFFICE VISITS AFTER A YEAR OF PREVENTIVE CARE
HER SON'S EMERGENCYROOM TRIPS HAVE BEEN REDUCED 40 AND HE RARELY NEEDS TO
SEE A DOCTOR AT ALL

BUDGETSTRAPPED PUBLIC SCHOOLS MAY SEEM UNLIKELY CANDIDATES FOR A LEADING
ROLE IN THE BATTLE AGAINST RISING HEALTHCARE COSTS BUT BY THE TIME US
HEALTHCARE REFORMS FINALLY TAKE EFFECT THOUSANDS OF CHILDREN LIKE ANDREW
MAY WELL BE INSURED THROUGH SCHOOL ENROLLMENTBASED PROGRAMS IN FLORIDA
ARKANSAS CALIFORNIA KANSAS NEW HAMPSHIRE AND NEW JERSEY

THE PLANS WHICH DON'T HAVE DEDUCTIBLES AND COVER PREVENTIVE CARE TARGET
THE GROWING POOL OF CHILDREN WHO AREN'T COVERED BY EITHER PARENTS' HEALTH
PLANS OR MEDICAID FUNDING VARIES FROM STATE TO STATE BUT MANY LOOK TO
PRIVATE FOUNDATIONS FOR SUPPORT AND SOME REQUIRE FAMILIES TO PAY A PORTION
OF THE PREMIUM

THE IDEA SURFACED IN A 1988 NEW ENGLAND JOURNAL OF MEDICINE ARTICLE BY STEVE
A FREEDMAN DIRECTOR OF THE INSTITUTE FOR CHILD HEALTH POLICY IN
GAINESVILLE FLA HE PROPOSED USING SCHOOLS AS GROUPS TO NEGOTIATE INSURANCE
COVERAGE FOR CHILDREN AND THEIR SIBLINGS LIMITING PARTICIPATION TO FAMILIES
INELIGIBLE FOR MEDICAID ESTIMATES ON THE NUMBER OF UNINSURED CHILDREN
NATIONWIDE RANGE FROM 84 MILLION TO 112 MILLION

WHILE MANY STATES HAVE STARTED PLANS FOR CHILDREN IN RECENT YEARS MOST OF
THOSE AVAILABLE SO FAR AREN'T SCHOOLBASED SOME SUCH AS THE BLUE
CROSS/BLUE SHIELD CARING PROGRAMS IN PENNSYLVANIA AND OTHER STATES ARE
PRIVATELY FUNDED MAINE AND VERMONT ARE AMONG A GROWING NUMBER OF STATES TO
BROADEN MEDICAID ELIGIBILITY FOR PREGNANT WOMEN AND CHILDREN

WHY GO THROUGH SCHOOLS WE'VE PRETTY MUCH MILKED DRY BUSINESSES AS A
GROUPING MECHANISM AND IT SEEMED LIKE THERE WAS A NEED FOR AN ALTERNATIVE
MR FREEDMAN EXPLAINS THE COVERAGE ALSO SERVES AS AN INCENTIVE TO KEEP KIDS
IN SCHOOL WHILE GIVING PARENTS MORE JOB MOBILITY AND IT REPLACES
SCHOOLBASED ACCIDENT COVERAGE WHICH IS TOO NARROW TO DO MUCH GOOD
FURTHER THE COST MAY EVENTUALLY BE OFFSET BY STATE PUBLICHEALTH SAVINGS

THE CONCEPT RESONATED IN FLORIDA WHERE IN 1990 THERE WERE 720000 UNINSURED
CHILDREN OR 28 OF THE TOTAL THAT YEAR THE STATE LEGISLATED CREATION OF A
NONPROFIT CORPORATION HEALTHY KIDS CORP TO CRAFT A HEALTHINSURANCE
PLAN FOR SCHOOL CHILDREN HEALTHY KIDS RECEIVED A FOURYEAR 7 MILLION
MEDICAID DEMONSTRATION GRANT FROM THE HEALTH CARE FINANCING ADMINISTRATION
AND THE COMPANY TARGETED 12000 CHILDREN IN 55 VOLUSIA COUNTY SCHOOLS ABOUT
6300 ARE ENROLLED IN THE 18MONTHOLD PROGRAM WHICH IS BEING EXPANDED TO
OTHER SCHOOL DISTRICTS

PARENTS PAY MONTHLY PREMIUMS OF UP TO 48 ON A SLIDING SCALE LINKED TO
ELIGIBILITY FOR THE NATIONAL SCHOOL FREELUNCH PROGRAM CHILDREN GET A RANGE
OF BENEFITS INCLUDING PRIMARY AND INPATIENT HOSPITAL CARE PRESCRIPTIONS
AND MENTAL HEALTH SERVICES DENTAL BENEFITS MAY SOON BE ADDED

FAMILIES HAVE TO MAKE DIFFICULT CHOICES DO YOU PUT MEAT ON THE TABLE OR
INSURANCE ON THE KID SAYS ROSE M NAFF EXECUTIVE DIRECTOR OF HEALTHY
KIDS MS NAFF ESTIMATES THAT AS MANY AS 50 OF PROGRAM PARTICIPANTS LIVE
WITH INSURED ADULTS WHOSE POLICIES DON'T COVER FAMILY MEMBERS THE ZABLO
FAMILY IS AN EXAMPLE MRS ZABLO'S HUSBAND BRENT IS INSURED THROUGH HIS
JOB AS A RESTAURANT MANAGER BUT THE FAMILY CAN'T AFFORD THE 150 MONTHLY
PREMIUM HIS POLICY REQUIRES FOR DEPENDENTS

GETTING PROVIDERS ON BOARD WASN'T EASY INSURERS WERE LEERY OF TAKING ON A
POTENTIALLY NEEDY POPULATION IN THE END FLORIDA SETTLED ON A DAYTONA BEACH
HEALTH MAINTENANCE ORGANIZATION IT'S STILL TOO SOON TO CALCULATE THE IMPACT
ON STATE HEALTHCARE COSTS AND SCHOOL ATTENDANCE BUT ONE PROVIDER HALIFAX
MEDICAL CENTER IN DAYTONA BEACH HAS HAD A 35 DECLINE IN EMERGENCYROOM
VISITS BY LOWINCOME CHILDREN SINCE THE PROGRAM STARTED

KANSAS AND NEW HAMPSHIRE ARE FOLLOWING FLORIDA'S LEAD WITH EQUIVALENTS OF
HEALTHY KIDS THOUGH WITH SHAKIER FINANCIAL RESOURCES KANSAS'S TOPEKABASED
ORGANIZATION BEGAN A PUSH IN JULY TO RAISE 653141 FOR A PILOT PROJECT TO
INSURE 464 CHILDREN BY MID1994

NEW HAMPSHIRE WHICH PASSED ITS BILL IN JULY HAS FURTHER TO GO WE'RE
PARTICULARLY CONCERNED BECAUSE WE'VE LOST SO MANY JOBS AND HAVE SO MANY
PEOPLE UNEMPLOYED HERE SAYS TERRY LOCHHEAD EXECUTIVE DIRECTOR OF NEW
HAMPSHIRE'S HEALTHY KIDS CORP A 1992 TELEPHONE POLL BY THE UNIVERSITY OF
NEW HAMPSHIRE FOUND THAT 22 OF PARENTS SURVEYED PAID FOR THEIR CHILDREN'S
PREVENTIVE CARE THEMSELVES MS LOCHHEAD SAYS THE STATE IS LOOKING INTO
PRIVATE FOUNDATION AND MEDICAID DEMONSTRATION GRANTS TO FUND ITS PROGRAM
NEW JERSEY IS ALSO CONSIDERING ADOPTING A SCHOOLBASED PROGRAM

ARKANSAS AND CALIFORNIA HAVEN'T FOLLOWED THE FLORIDA MODEL INSTEAD
CONSTRUCTING PLANS TAILORED TO THEIR RESPECTIVE RURAL AND HISPANIC
POPULATIONS IN ARKANSAS 641 CHILDREN ARE ENROLLED IN A TWOYEAROLD
DEMONSTRATION PROJECT SUBSIDIZED ENTIRELY BY HUD WITH ARKANSAS BLUE CROSS
AND BLUE SHIELD AS THE INSURER IF YOU CAN INTERVENE DURING SCHOOLAGE
YEARS THE POTENTIAL SAVINGS TO SOCIETY ARE MUCH GREATER SAYS FRANK
FARMER A UNIVERSITY OF ARKANSAS PROFESSOR AND THE PROGRAM'S CHIEF
RESEARCHER

SCHOOLBASED PROGRAMS MAY HAVE THE ADDED BENEFIT OF ATTRACTING FAMILIES PUT
OFF BY THE WELFARE STIGMA OF MEDICAIDADMINISTERED PROGRAMS PROPONENTS SAY
WITH SCHOOL PROGRAMS PARENTS JUST FILL OUT A FORM SAYS TERRY STOLLER
SENIOR CONSULTANT FOR MEDIMETRIX GROUP CLEVELAND CONSULTANTS THAT HELPED
DESIGN THE FLORIDA PROGRAM THEY DON'T HAVE TO STAND IN LINE AND BE
INTERROGATED

SO FAR MANY IN PUBLICPOLICY FIELDS LIKE THE IDEA JANE KOPPELMAN SENIOR
RESEARCH ASSOCIATE AT THE NATIONAL HEALTH POLICY FORUM IN WASHINGTON THINKS
SCHOOLBASED HEALTH INSURANCE HAS A LOT OF CURRENCY BUT SHE QUESTIONS HOW
SUCH COVERAGE WOULD MESH WITH PRESIDENT CLINTON'S EMPLOYERBASED
MANAGEDCOMPETITION REFORMS ONCE THEY'RE PHASED IN PEOPLE INVOLVED IN
SCHOOL PROGRAMS CITE RECENT ADMINISTRATION ASSURANCES TO STATE GOVERNORS
THAT STATES WILL HAVE FLEXIBILITY TO CONTINUE THEIR OWN HEALTHCARE REFORMS

A FEW OBSERVERS ARE MORE SKEPTICAL IT'S HARD TO GET EXCITED ABOUT A
LIMITED RESPONSE WHEN THE COUNTRY IS REACHING A CONSENSUS WE HAVE TO INSURE
ALL KIDS SAYS JULIA LEAR A PROGRAM DIRECTOR AT THE ROBERT WOOD JOHNSON
FOUNDATION IN WASHINGTON THE FOUNDATION IS A GENEROUS SPONSOR OF SCHOOL
HEALTH CLINICS

EVEN EAGER SUPPORTERS OF SCHOOLBASED INSURANCE CONCEDE IT'S NOT THE PERFECT
SOLUTION RURAL BENEFICIARIES OF ARKANSAS'S PROGRAM FOR EXAMPLE FACE
HURDLES JUST FINDING SERVICES ONE OF THE TWO PARTICIPATING SCHOOL DISTRICTS
DOESN'T HAVE ANY DOCTORS NEARBY AND ALL STATES WONDER HOW TO CONTINUE AFTER
THE DEMONSTRATION STAGE

IN PACOIMA CALIF THE PREDOMINANTLY HISPANIC VAUGHN NEXT CENTURY LEARNING
CENTER IS APPLYING FOR A ROBERT WOOD JOHNSON GRANT FOR SCHOOLBASED
HEALTHCARE SERVICES THAT WOULD INCLUDE INSURANCE COVERAGE THE CALIFORNIA
KIDS HEALTH CARE FOUNDATION IN WOODLAND HILLS HAS ALREADY RAISED THE
100000 ESTIMATED COST OF INSURING UP TO 300 ELEMENTARYSCHOOL CHILDREN
INELIGIBLE FOR MEDICAID FOR ONE YEAR AND BLUE CROSS OF CALIFORNIA IS
TAILORING A BENEFITS PACKAGE FOR ABOUT 400 A YEAR PER CHILD BUT
PHILANTHROPY IS NOT THE ANSWER TO HEALTHCARE REFORM SAYS MIKE KOCH
EXECUTIVE DIRECTOR OF CALIFORNIA KIDS

EVEN MR FREEDMAN WHO PIONEERED SUCH INSURANCE SEES IT AS A STOPGAP
MEASURE UNTIL COMPREHENSIVE REFORMS KICK IN THIS SERVES AS AN IMPORTANT
DEMONSTRATION THAT YOU CAN USE NONEMPLOYERS AS A GROUPING MECHANISM HE
SAYS BUT IT DOESN'T SOLVE MAJOR PROBLEMS IN HEALTHCARE FINANCING
9308310047 930831 JUDGE DISMISSES GOVIDEO SUIT

THE CLASSACTION SUIT BY FOUR HOLDERS CHARGED THAT GOVIDEO'S CHAIRMAN AND
OTHER DIRECTORS WASTED CORPORATE ASSETS AND BENEFITED THEMSELVES TO THE
DETRIMENT OF OTHER INVESTORS

IN A ONEPAGE ORDER THE JUDGE SAID THE STOCKHOLDERS SHALL TAKE NOTHING

GOVIDEO EXECUTIVES SAID THE LAWSUIT LACKED ANY FACTUAL BASIS WHATSOEVER
9308310046 930831 CARNIVAL TO BUY EPIROTIKI STAKE

MIAMI CARNIVAL CORP SAID IT WOULD ACQUIRE A SMALL EQUITY STAKE IN
EPIROTIKI LINES OF GREECE IN EXCHANGE FOR ONE OF ITS CRUISE SHIPS

THIS AGREEMENT IS A DEPARTURE FROM A PREVIOUS ANNOUNCEMENT IN WHICH CARNIVAL
SAID IT WOULD FORM A NEW COMPANY WITH EPIROTIKI AND DOLPHIN CRUISE LINE OF
MIAMI

CARNIVAL CORP FORMERLY KNOWN AS CARNIVAL CRUISE LINES INC DECLINED TO
GIVE A DOLLAR FIGURE FOR ITS INVESTMENT BUT THE COMPANY SAID IT IS
CONTINUING DISCUSSIONS WITH EPIROTIKI THAT COULD RESULT IN A MORE
SIGNIFICANT RELATIONSHIP BETWEEN THE TWO COMPANIES 9308310045 930831
INTERNATIONAL BRIEF BROKEN HILL PROPRIETARY CO STEEL OIL AND GAS
OPERATIONS SEEN HELPING YEAR'S RESULTS

BROKEN HILL PROPRIETARY CO AUSTRALIA'S LARGEST COMPANY EXPECTS RISING
STEEL PRICES AND NEW OIL AND GAS FIELD DEVELOPMENTS TO OFFSET THE IMPACT ON
EARNINGS OF LOWER COMMODITY PRICES IN THE YEAR ENDING JUNE 30 1994

IN ITS ANNUAL REPORT BHP GIVES A MIXED OUTLOOK FOR THE FISCAL YEAR AND
DOESN'T INCLUDE ANY DETAILED EARNINGS FORECASTS

THE COMPANY SAID ECONOMIC RECOVERY IN AUSTRALIA IN THE PREVIOUS YEAR WAS
MODEST AND PATCHY ALTHOUGH IT EXPECTS IMPROVEMENT IN THE CURRENT FISCAL
YEAR

BHP ALSO SAID THE GLOBAL BUSINESS ENVIRONMENT MAY BE ADVERSELY AFFECTED BY
A DRIFT TOWARD INTERVENTIONIST TRADE POLICIES AND COMPETITION WILL BE
FIERCE

BHP SAID HIGHER PRODUCTION FROM ITS MINING ACTIVITIES BASED LARGELY IN
AUSTRALIA CHILE AND INDONESIA SHOULD AT LEAST PARTLY OFFSET AN ANTICIPATED
FURTHER DECLINE IN GLOBAL COMMODITY PRICES 9308310044 930831
INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD L HOLMAN

TOKYO BROKERAGE UNITS OF BRITISH AND US FINANCIAL CONCERNS REDUCED THEIR
FORECASTS FOR JAPAN'S ECONOMIC PERFORMANCE

SG WARBURG SECURITIES JAPAN INC SLASHED ITS ESTIMATES OF
INFLATIONADJUSTED GROWTH IN GROSS NATIONAL PRODUCT FOR THE YEAR ENDING
MARCH 31 TO 03 FROM 15 AND FOR THE FOLLOWING YEAR TO 14 FROM 24
GOLDMAN SACHS JAPAN CORP DOWNGRADED ITS PREDICTIONS FOR THIS YEAR TO 07
FROM 15 AND NEXT YEAR TO 2 FROM 28

SG WARBURG CITED DEPRESSED SPENDING BY CORPORATIONS AND CONSUMERS AND THE
LIKELY INEFFECTIVENESS OF THE NEW GOVERNMENT'S ECONOMIC PLAN GOLDMAN SACHS
ATTRIBUTED ITS REVISION TO THE YEN'S STRENGTHENING AGAINST OTHER CURRENCIES

JAPAN'S DISCOUNT RATE WHICH THE CENTRAL BANK CHARGES ON LOANS TO COMMERCIAL
BANKS COULD BE CUT AS MUCH AS 05 PERCENTAGE POINT THE FIRMS SAID THE
BENCHMARK RATE LAST REDUCED IN FEBRUARY IS AT A RECORD LOW 25 THE FIRMS
PREDICTED RECOVERY SIGNS WON'T APPEAR UNTIL THE SECOND HALF OF THE YEAR
ENDING MARCH 30 1995 ONE YEAR LATER THAN JAPAN HAS FORECAST

TIME IS PASSING FASTER THAN USUAL IN BERLIN THE PHENOMENON BEGAN IN
DECEMBER WHEN THE GERMAN CITY'S EASTERN AND WESTERN ELECTRICITY SYSTEMS WERE
JOINED BUT WHILE THE WEST USED TO PROVIDE ELECTRICITY AT A CONSTANT 50
HERTZ OR CYCLES PER SECOND THE EASTERN FLOW FLUCTUATES BETWEEN 503 AND 51
HERTZ THUS HUNDREDS OF THOUSANDS OF CLOCKS IN BOTH SECTORS NOW GAIN TWO TO
FOUR MINUTES A DAY UP TO TWO HOURS A MONTH CAUSING CONFUSION ABOUT
WORK SHIFTS AND APPOINTMENTS AND MAKING VIDEO RECORDERS STOP BEFORE THE END
OF TV MOVIES THE PROBLEM IS EXPECTED TO CONTINUE THROUGH 1994 WHEN A NEW
GRID WILL MAKE THE FLOW UNIFORM

FRANCE'S UNEMPLOYMENT RATE ROSE TO A POSTWORLD WAR II HIGH OF 117 LAST
MONTH FROM 116 IN JUNE THE NUMBER OF PEOPLE SEEKING JOBS INCREASED
26000 OR A SEASONALLY ADJUSTED 08 TO 31 MILLION THOUGH THE RISE WAS
THE SMALLEST IN SIX MONTHS RECESSIONRELATED JOBLESS GROWTH REMAINED FASTER
THAN LAST YEAR THE FRENCH GOVERNMENT WHICH EXPECTS UNEMPLOYMENT TO
CONTINUE GROWING THROUGH YEAR END WANTS TO ENCOURAGE HIRING BY SIMPLIFYING
LABOR LAWS AND REDUCING EMPLOYER CONTRIBUTIONS TO SOCIAL PROGRAMS DESPITE
THE POOR EMPLOYMENT AND ECONOMIC SITUATIONS THE GOVERNMENT REMAINS
COMMITTED TO ITS TIGHT MONEY POLICY WHICH INVESTORS FEAR WILL STALL A
RECOVERY

SOUTH KOREAN MANUFACTURERS' PROFITS ARE BEING HURT BY THE HIGH COST OF
STORING AND TRANSPORTING GOODS THE SECTOR'S RATIO OF EARNINGS TO SALES FELL
TO 15 LAST YEAR FROM 18 IN 1991 AND 23 IN 1990 THE CENTRAL BANK
BLAMED A LACK OF INVESTMENT IN ROADS AND PORTS TO SUPPORT INDUSTRIAL GROWTH
LAST YEAR MANUFACTURERS SPENT 407 BILLION ON STORAGE AND TRANSPORTATION
UP 12 FROM A YEAR EARLIER WHEN THE INCREASE WAS 10 THE RATIO OF STORAGE
AND TRANSPORTATION COSTS TO SALES ROSE TO 165 LAST YEAR FROM 16
MEANWHILE MANUFACTURING COSTS AS A PERCENTAGE OF SALES EASED TO 82 IN 1992
FROM 827 IN THE PREVIOUS YEAR AS WAGES DECLINED

WITH THE JAPANESE ECONOMY DRAGGING THE AVERAGE STARTING SALARY FOR JAPANESE
UNIVERSITY GRADUATES IN WHITECOLLAR JOBS LAST SPRING GREW 22 FROM A YEAR
EARLIER TO 1884 A MONTH THE RISE IN A SURVEY OF 793 COMPANIES WAS THE
SMALLEST SINCE 1986 STARTING PAY ALSO GREW 22 FOR GRADUATES OF VOCATIONAL
SCHOOLS JUNIOR COLLEGES AND HIGH SCHOOLS ENTERING CLERICAL FIELDS

SWEDEN'S RETAILERS FACE TROUBLE AS DWINDLING PRIVATE CONSUMPTION AND WEAK
WAGE TRENDS DEPRESS SPENDING THE RETAIL AND WHOLESALE RESEARCH INSTITUTE
ESTIMATED THAT CONSUMPTION BASED ON PRICES WILL DROP 4 THIS YEAR THE
SHARPEST DECLINE SINCE WORLD WAR II DWARFING THE RECORD 24 FALL IN 1983
LAST YEAR THE DECLINE WAS 19 RETAIL SALES COULD DROP BETWEEN 4 AND 45
THIS YEAR THE PESSIMISTIC OUTLOOK REFLECTS SMALL WAGE INCREASES AND GROWING
INFLATION WHICH RAN LAST MONTH AT AN ANNUAL RATE OF 46 UP FROM 19 A
YEAR EARLIER SWEDEN'S GROSS NATIONAL PRODUCT COULD CONTRACT 18 IN 1993
AFTER SHRINKING 17 LAST YEAR

THE BABYBOOM GENERATION IN FRANCE WILL HAVE TO WORK LONGER AND POSSIBLY
HARDER THAN PEOPLE BORN IN THE 1930S TO GET THEIR GOVERNMENT PENSIONS

UNDER LEGISLATION THAT TAKES EFFECT JAN 1 PEOPLE BORN SINCE THE LATE 1940S
WILL BE SUBJECT TO A GRADUAL INCREASE TO 40 FROM 375 YEARS OF WORK NEEDED
TO QUALIFY FOR FULL PENSIONS THE LAW ALSO INCREASES TO 25 FROM 10 THE YEARS
OF HIGHEST SALARY AVERAGED TO DETERMINE PENSION PAYMENTS

THIS MEANS THAT PEOPLE NOW IN THEIR 40S MUST WORK BEYOND THE OFFICIAL
RETIREMENT AGE OF 60 TO TAKE HOME A FULL PENSION AND MAY SEEK HIGHER PAY TO
FATTEN AVERAGES

THE PACKAGE WHICH PRIME MINISTER EDOUARD BALLADUR'S GOVERNMENT PUSHED
THROUGH AFTER ONLY FIVE MONTHS IN OFFICE WAS HAILED AS A MAJOR VICTORY FOR
THE SURVIVAL OF THE WIDELY ADMIRED BUT COSTLY FRENCH SOCIAL SECURITY SYSTEM

CANADA'S CRIME RATE WHICH HAD BEEN GROWING SINCE THE MID1980S LAST YEAR
FELL 32 TO 28 MILLION OFFENSES FROM A YEAR EARLIER THOUGH VIOLENT CRIMES
INCREASED 2  THE EIFFEL TOWER THE 1050FOOT SPIRE BUILT FOR THE
1889 PARIS EXPOSITION RECORDED ITS 150 MILLIONTH VISITOR 9308310042
930831 GENTRA PLAN IS CLEARED

TORONTO AN ONTARIO COURT JUDGE APPROVED GENTRA INC'S RESTRUCTURING PLAN
REMOVING THE COMPANY'S LAST MAJOR OBSTACLE BEFORE IT CAN COMPLETE A
TRANSACTION WITH ROYAL BANK OF CANADA

UNDER THE PLAN GENTRA FORMERLY CALLED ROYAL TRUSTCO LTD WILL SELL THE
BULK OF ITS OPERATING ASSETS TO ROYAL BANK IN A DEAL VALUED AT 16 BILLION
CANADIAN DOLLARS US121 BILLION THE TRANSACTION IS EXPECTED TO CLOSE
NEXT MONTH GENTRA IS A FINANCIAL SERVICES CONCERN IN TORONTO 9308310041
930831 SUN MICROSYSTEMS PARTNERSHIP

MOUNTAIN VIEW CALIF SUN MICROSYSTEMS COMPUTER CORP A UNIT OF SUN
MICROSYSTEMS INC SAID IT HAS EXTENDED ITS PARTNERSHIP WITH TEXAS
INSTRUMENTS INC BY SELECTING TI 64BIT CHIPS FOR ITS ULTRASPARCI
MICROPROCESSOR ARCHITECTURE

IN A RELATED MOVE THE SUN UNIT SAID IT WILL OFFER COMPUTER SYSTEMS
DESIGNERS EARLY ACCESS TO ITS ULTRASPARC CORE TECHNOLOGIES TO REDUCE DESIGN
TIME FOR COMPUTER PRODUCTS BASED ON THE TECHNOLOGY 9308310040 930831
FINANCING BUSINESS PANAMERICAN BEVERAGES INC

PANAMERICAN BEVERAGES INC MEXICO CITY A CLOSELY HELD BOTTLER OF COCACOLA
CO PRODUCTS IN MEXICO REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 115 MILLION SHARES OF CLASS A
COMMON STOCK THE SHARES APPROVED FOR LISTING ON THE NEW YORK STOCK
EXCHANGE WILL BE PRICED AT 22 TO 24 A SHARE OF THE TOTAL SHARES OFFERED
NINE MILLION WILL BE SOLD BY PANAMERICAN AND 25 MILLION BY SHAREHOLDERS
LAZARD FRERES & CO GOLDMAN SACHS & CO AND SMITH BARNEY INC ARE THE
UNDERWRITERS IN THE US COCACOLA RECENTLY ACQUIRED 2551391 CLASS A
SHARES AND 372937 CLASS B SHARES OF PANAMERICAN FOR 309 MILLION OR
1056 A SHARE A PRICE NEGOTIATED IN APRIL THE PURCHASE GIVES COCACOLA A
10 STAKE IN EACH CLASS OF STOCK AFTER THE OFFERING 9308310039 930831
BUSINESS BRIEF STAC ELECTRONICS JUDGE DENIES MICROSOFT BID FOR
INJUNCTION IN PATENT SUIT

STAC ELECTRONICS SAID A FEDERAL JUDGE IN LOS ANGELES DENIED A MOTION BY
SOFTWARE GIANT MICROSOFT CORP SEEKING A PRELIMINARY INJUNCTION AGAINST
SALES OF STAC'S DATA COMPRESSION PRODUCT WHICH IS USED TO INCREASE THE
STORAGE CAPACITY OF COMPUTER SYSTEMS

STAC BASED IN LOS ANGELES FILED SUIT AGAINST MICROSOFT IN JANUARY 1993
ALLEGING THAT MICROSOFT'S DOUBLESPACE DATA COMPRESSION PRODUCT INFRINGES ON
STAC PATENTS MICROSOFT OF REDMOND WASH COUNTERSUED ALLEGING PATENT
INFRINGEMENT AND ASKING THE COURT TO BLOCK STAC FROM SELLING ITS PRODUCT

STAC ADDED IT EXPECTS TO GO TO TRIAL IN DECEMBER ON ITS ORIGINAL COMPLAINT

MICROSOFT ATTORNEYS SAID THE RULING ISN'T A DETERMINATION OF THE MERITS OF
OUR CASE AND ADDED THE COMPANY WILL AGGRESSIVELY PURSUE ITS SUIT AGAINST
STAC 9308310038 930831 MARKETSCAN CHANGES SHAKE UP SOFTDRINK
COMPANIES  BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET
JOURNAL

ALTHOUGH 1993 IS FAR FROM OVER THE SOFTDRINK INDUSTRY IS ALREADY REGARDING
IT AS A MEMORABLE YEAR

COCACOLA CO INTRODUCED A SERIES OF NEW COMMERCIALS WITH THE ALWAYS
COCACOLA SLOGAN PEPSICO INC WAS VICTIMIZED BY A NATIONWIDE SYRINGE
SCARE DIET COKE LAUNCHED THEN PULLED ITS TASTE IT ALL AD CAMPAIGN
SALES OF CRYSTAL PEPSI THE GRAND EXPERIMENT WITH COLORLESS COLA TOOK OFF
THEN FELL BACK INDUSTRY SLEEPER DR PEPPER REAWAKENED AND FEARS ABOUT
PRIVATELABEL BEVERAGES CAST A CLOUD OVER THE BIG SOFTDRINK PLAYERS

A LOOK AT THE SALES PERFORMANCE OF THE BIGGEST BRANDS SHOWS SOME OF THE
SHIFTS IN SHORT FOR THE 28WEEK PERIOD ENDED JULY 11 SALES OF COCACOLA
CLASSIC AND DR PEPPER WERE UP WHILE PEPSICOLA DIET PEPSI AND DIET COKE
WERE DOWN ACCORDING TO INFORMATION RESOURCES INC

AS SOFTDRINK COMPANIES' KEY SUMMERSELLING SEASON WINDS DOWN SEVERAL
PIECES OF THE INDUSTRY'S CONVENTIONAL WISDOM ARE BEING UPENDED NOTABLY NEW
COMMERCIALS FOR COCACOLA CLASSIC WHICH WERE UNVEILED IN FEBRUARY AND HAVE
DRAWN MIXED REVIEWS IN THE ADVERTISING COMMUNITY SURPASSED PEPSI IN
ADVERTISING MEMORABILITY FOR THE FIRST TIME IN SIX YEARS ACCORDING TO ONE
CLOSELY WATCHED STUDY THE PEPSI SYRINGE SCARE WHICH INDUSTRY ANALYSTS
THOUGHT WOULD HAVE A NEGLIGIBLE SALES IMPACT ENDED UP COSTING THE COMPANY
BY ITS OWN ESTIMATE AS MUCH AS 15 MILLION IN SALES AND SALES OF
PRIVATELABEL DRINKS HAVE PROVED SURPRISINGLY STRONG

THANKS TO MORE ATTRACTIVE PACKAGING AND MORE VISIBLE POSITIONING ON STORE
SHELVES SALES OF PRIVATELABEL COLAS VAULTED 246 AND THEIR DIET
COUNTERPARTS RACKED UP A 493 INCREASE FOR THE PERIOD ENDED JULY 11
THERE'S A DIRTY LITTLE SECRET THAT'S RAPIDLY BEING DISCOVERED SAYS TOM
PIRKO PRESIDENT OF BEVMARK INC A CONSULTING FIRM THERE'S A LOT OF GOOD
COLA OUTSIDE THE MAJOR BRANDS

CERTAINLY STORES ARE GETTING MORE AGGRESSIVE IN PROMOTING THEIR OWN BRANDS
HYVEE FOOD STORES INC BASED IN CHARITON IOWA ADVERTISES ITS HYVEE POP
LINE ON TELEVISION AND IN NEWSPAPERS ONE OF ITS MOST POPULAR FLAVORS IS HEE
HAW WHICH THE COMPANY ADMITS IS A KNOCKOFF OF PEPSI'S POPULAR MOUNTAIN DEW
OUR GOAL IS TO BE AS GOOD AS OR BETTER THAN THE MARKET LEADER BUT AT A
SAVINGS SAYS DENNY MILNES ASSISTANT DIRECTOR OF PURCHASING FOR THE
218STORE CHAIN

COKE AND PEPSI CALL THE PRIVATELABEL THREAT MINIMAL IN APRIL COKE HELD A
MEETING FOR STOCK ANALYSTS AND SENT BROCHURES TO INVESTORS TO CONVINCE THEM
THAT UNLIKE CONSUMER GOODS SUCH AS CIGARETTES COKE WASN'T NEARLY AS
VULNERABLE TO PRIVATELABEL BRANDS COKE NOTED THAT SOFTDRINK PRICES HAVE
REMAINED RELATIVELY LOW ALLOWING LITTLE ROOM FOR STOREBRAND RIVALS TO
UNDERCUT THEM

COCACOLA CLASSIC MEANWHILE IS THE COUNTRY'S BESTSELLING SOFT DRINK ITS
SALES GREW 34 IN THE 28 WEEKS ENDED JULY 11 ACCORDING TO INFORMATION
RESOURCES ECLIPSING THE MODERATE 14 GROWTH OF THE INDUSTRY AS A WHOLE
COKE CREDITS A NATIONWIDE BUYONEGETONEFREE PROMOTION ON 12PACKS ALSO
HELPING WAS THE PLACEMENT OF 5000 ICE COOLERS IN CHECKOUT AISLES OF GROCERY
STORES SAYS A COMPANY SPOKESWOMAN

DIRECT CORRELATIONS BETWEEN SALES AND ADVERTISING ARE VERY DIFFICULT TO
MAKE BUT THE ALWAYS COCA COLA CAMPAIGN DEVISED BY HOLLYWOOD'S CREATIVE
ARTISTS AGENCY CERTAINLY DOESN'T APPEAR TO BE HURTING SALES DURING THE
SECOND QUARTER COKE COMMERCIALS TOPPED PEPSI SPOTS IN CONSUMER RECALL
ACCORDING TO VIDEO STORYBOARD TESTS A NEW YORK ADVERTISINGTRACKING
CONCERN WHEN 4400 CONSUMERS WERE ASKED TO PICK THE MOST OUTSTANDING TV
COMMERCIAL THEY HAD SEEN IN THE PAST FOUR WEEKS COKE SPOTS ROSE ABOVE
PEPSI'S THE LAST TIME THAT HAPPENED WAS IN 1987 WHEN COKE AIRED ADS
FEATURING MAX HEADROOM AN ANIMATED CHARACTER URGING VIEWERS TO CCCATCH
THE WAVE

WHILE COKE WON'T DISCUSS THE SPECIFIC EFFECT OF THE ALWAYS CAMPAIGN ON
SALES A COMPANY SPOKESWOMAN SAYS IT HAS ENERGIZED OUR SYSTEM

AT PEPSI JEFF CAMPBELL SENIOR VICE PRESIDENT OF BRAND DEVELOPMENT SAYS
THE COMPANY HAS SOME NEW ADVERTISING IN THE WORKS TO BATTLE BACK WE HAVE
SOME GREAT STUFF COMING HE ADDS

PEPSI MAY HAVE LOST THE TOP SPOT BECAUSE IT HAS SCALED BACK SINGER RAY
CHARLES'S APPEARANCES IN ITS DIET PEPSI COMMERCIALS HE'S THE ONE THING
THAT PEOPLE THINK OF WHEN THEY THINK OF PEPSI SAYS DAVE VADEHRA PRESIDENT
OF VIDEO STORYBOARD TESTS

MORE HURTFUL TO PEPSI THAN THE ADVERTISING CHANGES THOUGH WERE THE DOZENS
OF FALSE CLAIMS IN JUNE ABOUT SYRINGES IN DIET PEPSI CANS IN THE COMPANY'S
FIRST ESTIMATE OF THE SALES DAMAGE IT SUFFERED MR CAMPBELL SAID THE
TWOWEEK PHENOMENON COST PEPSI BETWEEN 10 MILLION TO 15 MILLION IN
SALES A FOURTH OF JULY PROMOTION OFFERING 1OFF COUPONS FOR PEPSI
PRODUCTS GENERATED 800000 CASES MORE THAN THE PRIOR WEEK IT WAS OUR
BIGGEST SALES WEEK AND WE HAVEN'T LOOKED BACK SINCE MR CAMPBELL SAYS

NONETHELESS SALES OF THE PEPSICOLA BRAND FELL 3 BETWEEN JAN 1 AND JULY
11 WHILE DIET PEPSI DROPPED 61 PEPSI NOW SAYS SALES OF BOTH REGULAR AND
DIET PEPSI HAVE REBOUNDED RECENTLY

AFTER AN INITIALLY STRONG START CRYSTAL PEPSI FALTERED MANY CONSUMERS WERE
DISAPPOINTED WITH THE TASTE BECAUSE THEY EXPECTED IT TO TASTE JUST LIKE
PEPSI'S DARK COLA TODAY THE COMPANY DESCRIBES THE TASTE AS BEING LIGHTER
AND LESS SWEET BUT AFTER MARKETING AND ADVERTISING CHANGES CRYSTAL PEPSI
HAS MADE SOME INROADS PARTICULARLY IN THE TEENAGE AND ETHNICURBAN MARKETS

CRYSTAL PEPSI'S RECENT SALES PERFORMANCE HAS CAUSED PEPSI TO REVISE ITS GOAL
FOR THE NEW BRAND TO NAB 2 OF THE 48 BILLION SOFTDRINK MARKET THIS YEAR
MR CAMPBELL NOW SAYS PEPSI WILL BE HAPPY WITH A 16 SHARE FOR THE YEAR
ABOUT 768 MILLION IN SALES AT THE RETAIL LEVEL

BRANDED DIET COLAS SLIPPED THE MOST THROUGH THE FIRST HALF OF THIS YEAR
SALES OF DIET COKE FOR EXAMPLE DROPPED 26 IN THE RECENT 28WEEK PERIOD
WHILE SALES OF DIET PEPSI THE TARGET OF MANY OF THE TAMPERING CLAIMS
DECLINED 61

DIET DRINKERS SEEMED TO TURN MORE TO NONCOLAS WITH DIET DR PEPPER FOR
ONE SHOWING A HEALTHY SALES GAIN OF 63 IN ADDITION WEIGHTCONSCIOUS
CONSUMERS ARE INCREASINGLY PICKING UP READYTODRINK ICED TEAS

NONCOLAS OVERALL ARE STRONG SELLERS DR PEPPER SAW SALES JUMP 118 AND
MOUNTAIN DEW CLIMBED 105 DURING THE 28WEEK PERIOD DR PEPPER BENEFITED
FROM A MAY MADNESS PROMOTION IN ADDITION SOME RETAILERS SAY DR PEPPER
SALESPEOPLE HAVE BEEN MORE ATTENTIVE GARY HUDDLESTON A KROGER CO
SPOKESMAN FOR THE TEXAS AND LOUISIANA REGIONS SAYS DR PEPPER STAFFERS ARE
MAINTAINING DISPLAYS BETTER IN HIS STORES AND STOCKING SHELVES MORE
FREQUENTLY

THE DR PEPPER IMPROVEMENTS HAVEN'T GONE UNNOTICED IN THE SOFTDRINK
BUSINESS THIS MONTH CADBURY SCHWEPPES PLC THE BIG SOFTDRINK AND CANDY
COMPANY IN LONDON AGREED TO PAY 2318 MILLION TO RAISE ITS STAKE IN
DALLASBASED DR PEPPER/SEVENUP COS TO 259 FROM 57

SALES OF SOME BIGNAME DRINKS HAVE BEEN LACKLUSTER SO FAR THIS YEAR BUT
SUCH BRANDS AS MOUNTAIN DEW AND DR PEPPER AS WELL AS PRIVATELABEL COLAS
HAVE BEEN COMING ON STRONG 9308310037 930831 BUSINESS BRIEFS

PERINI CORP'S PERINI INTERNATIONAL CORP UNIT SIGNED AN AGREEMENT WITH
LEMMINKINEN CONSTRUCTION LTD OF FINLAND TO JOINTLY PURSUE GENERAL
CONTRACTING AND CONSTRUCTION MANAGEMENT OPPORTUNITIES IN THE FORMER SOVIET
UNION

INTERCARGO CORP COMPLETED ITS ACQUISITION OF CLOSELY HELD INTERNATIONAL
ADVISORY SERVICES INC AN AFFILIATED AGENT FOR 650000 RESTRICTED
UNREGISTERED SHARES

EQUITY AU INC HAS BEEN GRANTED AN OPERATING PERMIT FOR PRECIOUS METALS
REFINING AND OPERATION OF ITS NEW ELECTRON BEAM FURNACE BY THE ARKANSAS
DEPARTMENT OF POLLUTION CONTROL AND ECOLOGY

BONJOUR GROUP LTD MAKERS OF SPORTSWEAR CHILDREN'S APPAREL ACCESSORIES
AND WOMEN'S LINGERIE ENTERED A LICENSING AGREEMENT WITH SALTON/MAXIM
HOUSEWARES INC TO MANUFACTURE A PERSONALCARE APPLIANCE COLLECTION UNDER
THE BONJOUR NAME 9308310036 930831 CYCOMM INTERNATIONAL INC

PORTLAND ORE CYCOMM INTERNATIONAL INC HAS AGREED TO ACQUIRE 50 OF THE
COMMON SHARES OF GALACTICA TELECOM CA OF VENEZUELA TERMS WEREN'T
DISCLOSED

CYCOMM EXPECTS TO CLOSE THE AGREEMENT BY SEPT 30 A SPOKESMAN SAID

GALACTICA A CLOSELY HELD TELECOMMUNICATIONS SYSTEMS INTEGRATION AND
DISTRIBUTION COMPANY HAD ANNUAL REVENUE OF 12 MILLION CYCOMM SAID
9308310035 930831 INTERNATIONAL BRIEF TELECOM CORP OF NEW ZEALAND 
FIRM SAYS COSTCUTTING PLAN IS WELL AHEAD OF SCHEDULE

RODERICK DEANE CHIEF EXECUTIVE OFFICER OF TELECOM CORP OF NEW ZEALAND
SAID THE PHONE COMPANY'S PROGRAM OF REDUCING COSTS ESPECIALLY BY CUTTING
STAFF IS WELL AHEAD OF SCHEDULE

MR DEANE ALSO SAID PROFIT FOR THE FIRST FIVE MONTHS OF ITS FISCAL YEAR
ENDING MARCH 31 IS AHEAD OF PROJECTIONS WE'RE WELL ON TRACK WITH RESPECT
TO OUR PROFIT PROJECTIONS  WE'RE AHEAD OF BUDGET HE SAID

MR DEANE WOULDN'T COMMENT ON ACTUAL FORECASTS BUT FOR THE FISCAL FIRST
QUARTER ENDED JUNE 30 TELECOM RECORDED AN OPERATING PROFIT AFTER TAX OF
1182 MILLION NEW ZEALAND DOLLARS US653 MILLION UP 22 FROM A YEAR
EARLIER

MR DEANE SAID TELECOM HAS HAD A PROGRAM OF RESTRUCTURING IN RECENT YEARS TO
MEET INCREASED COMPETITION IN THE NEW ZEALAND TELECOMMUNICATIONS MARKET A
MAIN PART OF THE EFFORT IS TO REDUCE THE NUMBER OF EMPLOYEES TO 9500 BY
MARCH 31 FROM THE CURRENT TOTAL OF ABOUT 11000

TELECOM WAS THE SOLE PROVIDER OF TELEPHONE SERVICES IN NEW ZEALAND UNTIL IT
WAS SOLD BY THE GOVERNMENT IN 1990 AMERITECH CORP AND BELL ATLANTIC CORP
BOTH OF THE US CONTROL TELECOM 9308310034 930831 FOREIGN EXCHANGE 
DOLLAR GAINS A BIT AS PROFITS ARE TAKEN ON MARK POUND IS HIT BY RATECUT
TALK  BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL

NEW YORK THE DOLLAR ENDED SLIGHTLY HIGHER MONDAY AS INVESTORS TOOK
PROFITS ON LAST WEEK'S GAINS BY THE MARK AND TALK ABOUT BRITISH
INTERESTRATE CUTS DRAGGED DOWN THE POUND

AUGUST VACATIONS ENDOFTHEMONTH BOOKKEEPING AND HOLIDAYS IN LONDON AND
HONG KONG MADE FOR EXTREMELY THIN MARKETS AND TRADERS SAID CURRENCY
MOVEMENTS SHOULDN'T BE GIVEN MUCH WEIGHT UNTIL AT LEAST WEDNESDAY WHEN THE
NEW MONTH BEGINS

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16724 MARKS UP FROM 16644
MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
10380 YEN UP A BIT FROM 10375 YEN STERLING WAS TRADING AT 14925 DOWN
FROM 15030

ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10435 YEN AND AT
16705 MARKS

ALTHOUGH TRADERS SAID THE DOLLAR HAD LITTLE APPEAL OF ITS OWN AT THE MOMENT
IT RECEIVED A BOOST MONDAY FROM GENERAL WEAKNESS IN THE MARK LAST WEEK THE
GERMAN CENTRAL BANK'S DECISION NOT TO CUT INTEREST RATES SURPRISED THE
MARKETS AND LED TO FRENZIED BUYING OF THE GERMAN CURRENCY ON MONDAY
INVESTORS TOOK PROFITS

THE MARK ALSO LOST GROUND AGAINST THE YEN AND SWISS FRANC LATE IN NEW YORK
MONDAY IT WAS TRADING AT 6211 YEN COMPARED WITH 6235 YEN LATE FRIDAY AND
AT 08808 FRANC COMPARED WITH 08815 FRANC LATE FRIDAY

STERLING HOWEVER WAS LOWER AT 24959 MARKS COMPARED WITH 25018 MARKS
LATE FRIDAY TRADERS ATTRIBUTED THE POUND'S DROP TO RENEWED SPECULATION THAT
A BRITISH INTERESTRATE CUT IS IMMINENT PROBABLY AFTER THE UK TREASURY'S
MONTHLY REPORT DUE SEPT 8 BUT BEFORE THE RULING CONSERVATIVE PARTY'S
CONFERENCE IN EARLY OCTOBER

NIGEL RENDELL AN INTERNATIONAL ECONOMIST AT JAMES CAPEL & CO IN NEW YORK
SAID THE BRITISH TREASURY REPORT IS EXPECTED TO CONTAIN AN INFLATION
OUTLOOK AND THAT IF IT SHOWS PRICE RISES ARE UNDER CONTROL THE BANK OF
ENGLAND WOULD HAVE ADDITIONAL LICENSE TO CUT RATES

THE CENTRAL BANK MIGHT BID TO KEEP STERLING LOW AND THUS KEEP BRITISH
EXPORTS COMPETITIVE SOME PLAYERS HAVE SUGGESTED BY SLICING THE 6 DISCOUNT
RATE A FULL POINT IN SEPTEMBER AND THEN AGAIN TO 4 BEFORE THE END OF 1993
BUT MR RENDELL DOUBTED THE CUTS WOULD BE SO DRASTIC

I THINK THEY WILL START OUT WITH A HALF POINT CUT WITH A HOPE OF DOING
ANOTHER HALF LATER IN THE YEAR MR RENDELL SAID

LOWER INTEREST RATES USUALLY MAKE CURRENCIES LESS ATTRACTIVE BY LOWERING THE
RETURN ON DEPOSITS IN THAT CURRENCY AT THE SAME TIME LOWER RATES CAN FUEL
AN ECONOMY AND INCREASE SPENDING WHICH IN THE LONG RUN CAN INCREASE DEMAND
FOR A CURRENCY AND RAISE ITS VALUE

INTERESTRATE CUTS ALSO WILL BE UNDER DISCUSSION IN JAPAN TUESDAY WHERE
SEVERAL CABINET MINISTERS WILL HOLD AN EXTRAORDINARY SESSION ON WAYS TO FUEL
THE ECONOMY

JAPAN'S LONG ECONOMIC SLOWDOWN HAS DEPRESSED DEMAND FOR IMPORTS
EXACERBATING THE COUNTRY'S HUGE TRADE SURPLUS THAT SURPLUS MEANWHILE HAS
FORCED UP THE VALUE OF THE YEN THE YEN'S APPRECIATION HAS DIMINISHED
JAPANESE EXPORTERS' PROFITS SLOWING INVESTMENT INSIDE THE COUNTRY AND
EXTENDING THE ECONOMIC SLOWDOWN

ONE RESULT OF THE MEETING MIGHT BE TO EASE JAPAN'S 25 DISCOUNT RATE BY A
QUARTER TO HALF A POINT BUT THE CUT IS ALREADY FACTORED INTO CURRENCY
VALUES SAID JACK GRIFFIN AN ASSISTANT VICE PRESIDENT AT FUJI BANK

WE'VE BEEN TALKING ABOUT THIS FOR MONTHS ALREADY HE SAID 9308310033
930831 BUSINESS BRIEF TRITON ENERGY CORP UNITED INVESTORS UNIT BUYS 
LARGE PART OF US HOLDINGS

TRITON ENERGY CORP SAID IT SOLD SUBSTANTIALLY ALL ITS DOMESTIC OIL AND GAS
PROPERTIES TO TORCH ENERGY ADVISORS INC FOR 186 MILLION

TRITON A DALLASBASED OIL AND GAS DEVELOPER SAID IT WILL SELL ITS
REMAINING US PROPERTIES IN ORDER TO FOCUS ON INTERNATIONAL PROJECTS
PRIMARILY IN COLOMBIA MALAYSIA THAILAND AND ARGENTINA

THE PROPERTIES SOLD TO TORCH A UNIT OF BIRMINGHAM ALABASED UNITED
INVESTORS MANAGEMENT CO COMPRISE ABOUT 60 WELLS WITH RESERVES OF 28
MILLION BARRELS EQUIVALENT THE COMPANY SAID

MEANWHILE TRITON SAID ITS PROVEN OIL RESERVES FOR 1993 INCREASED 51 TO
130 MILLION BARRELS OF OIL EQUIVALENT AS OF MAY 31 UP FROM THE YEAREARLIER
86 MILLION BARRELS THE IMPROVEMENT REFLECTS THE FACT THAT CERTAIN FIELDS IN
COLOMBIA WERE DECLARED READY FOR COMMERCIAL PRODUCTION BY THE COLOMBIAN
GOVERNMENT TRITON SAID 9308310032 930831 PRIMARK COMPLETES SALE OF UNIT

MCLEAN VA PRIMARK CORP SAID IT COMPLETED THE SALE OF ITS WESTMARK
MORTGAGE CORP UNIT IN A MOVE TO REFOCUS ITS BUSINESS ON
INFORMATIONSERVICE MARKETING

WESTMARK COSTA MESA CALIF WAS SOLD TO NETWORK FINANCIAL SERVICES INC A
REALESTATE SERVICE COMPANY IN SAN JOSE CALIF FOR 6 MILLION

PRIMARK ALSO PLANS TO SELL ANOTHER UNIT TRIAD INTERNATIONAL MAINTENANCE
CORP GREENSBORO NC IN THE NEAR FUTURE AS PART OF THE STREAMLINING
PLAN 9308310031 930831 BUSINESS BRIEF AMGEN INC PACT REACHED WITH
KIRIN TO SELL PRODUCTS IN CHINA

AMGEN INC THOUSAND OAKS CALIF SAID AMGEN GREATER CHINA LTD AND KIRIN
BREWERY CO'S KIRIN PHARMACEUTICALS LTD ENTERED INTO A JOINT AGREEMENT FOR
THE SALE OF BIOPHARMACEUTICALS TO CHINA

UNDER THE AGREEMENT THE COMPANIES WILL SELL A SINGLE LINE OF RECOMBINANT
HUMAN ERYTHROPOIETIN PRODUCTS WHICH WILL BE MANUFACTURED BY AMGEN AND SOLD
UNDER THE TRADE NAME EPOGEN IN CHINA EPOGEN STIMULATES RED BLOOD CELLS IN
THE TREATMENT OF ANEMIA AND CHRONIC KIDNEY FAILURE

THE COMPANIES ALSO WILL SELL A SINGLE LINE OF RECOMBINANT HUMAN GRANULOCYTE
COLONY STIMULATING FACTOR PRODUCTS TO BE MADE BY KIRIN AND SOLD UNDER THE
TRADE NAME GRAN GRAN STIMULATES THE BODY HELPING TO PRODUCE WHITE BLOOD
CELLS USED FOR CANCER PATIENTS UNDERGOING CHEMOTHERAPY 9308310030 930831
SIEMENS BOSTON TECHNICAL PACT

BOSTON SIEMENS AG SAID IT HAS SIGNED AN EXCLUSIVE US SALES AND
DISTRIBUTION PACT WITH BOSTON TECHNICAL SERVICES CORP FOR THE US
EDUCATIONAL AND GOVERNMENTAL RIGHTS OF XPERCASE A COMPUTERAIDED SOFTWARE
ENGINEERING PROGRAM

SIEMENS SAID BOSTON TECHNICAL WOULD RECEIVE 60 OF THE REVENUE FROM THE
TRANSACTION THE TWO COMPANIES PROJECT YEARLY SALES OF 20 MILLION FOR
XPERCASE

BOSTON TECHNICAL IS A PRIVATELY HELD CORPORATION WITH ANNUAL REVENUE OF 25
MILLION 9308310029 930831 BUSINESS BRIEF BICOASTAL CORP COMPANY
FINED 1 MILLION FOR FRAUD AGAINST THE US

BICOASTAL CORP PLEADED GUILTY TO DEFRAUDING THE US GOVERNMENT BY
ROUTINELY INFLATING COST ESTIMATES ON SOLESOURCE PENTAGON CONTRACTS THE
JUSTICE DEPARTMENT SAID

BICOASTAL THE SUCCESSOR TO SINGER CORP WAS SENTENCED TO PAY A 1 MILLION
CRIMINAL FINE BY A FEDERAL JUDGE IN SYRACUSE NY BICOASTAL AND ANOTHER
COMPANY CAE INDUSTRIES LTD TORONTO PAID A 555 MILLION CIVIL FINE IN
JULY 1992

THE CHARGES INVOLVED BICOASTAL'S LINK FLIGHT SIMULATION UNIT WHICH CAE
PURCHASED IN 1988 AFTER THE SUSPECT BILLING TOOK PLACE BICOASTAL IN TAMPA
FLA CURRENTLY IS EMERGING FROM PROTECTION FROM ITS CREDITORS UNDER CHAPTER
11 OF THE FEDERAL BANKRUPTCY CODE

AT BICOASTAL JANET HOER DIRECTOR OF INVESTOR RELATIONS DECLINED TO
COMMENT AND REFERRED ALL QUESTIONS TO THE COMPANY'S ATTORNEY WHO COULDN'T
BE REACHED FOR COMMENT 9308310028 930831 INTERNATIONAL SWEDISH FIRM'S
PROFIT ROSE

STOCKHOLM ATLASCOPCO AB A SWEDISH MACHINERY AND MINING TOOLS MAKER
REPORTED A 12 FIRSTHALF RISE IN PRETAX PROFIT AFTER FINANCIAL ITEMS AND
PROJECTED IMPROVEMENT FOR THE FULL YEAR

PRETAX PROFIT TOTALED 661 MILLION KRONOR 823 MILLION UP FROM 590
MILLION KRONOR

SALES ROSE 13 TO 893 BILLION KRONOR FROM 787 BILLION 9308310027 930831
BUSINESS BRIEF BELL CANADA REGULATORS REJECT REQUEST ON LOCAL
TELEPHONE RATES

THE CANADIAN RADIOTELEVISION AND TELECOMMUNICATIONS COMMISSION REJECTED
BELL CANADA'S REQUEST FOR INCREASES IN LOCAL TELEPHONE RATES AND LOWERED THE
UTILITY'S ALLOWABLE RATE OF RETURN

BELL CANADA CANADA'S BIGGEST TELEPHONE UTILITY SAID THE SHORTSIGHTED
DECISION WILL FORCE IT TO REEXAMINE WHAT KIND OF LOCAL SERVICES IT CAN
PROVIDE AND HOW MUCH IT CAN AFFORD TO INVEST

BCE INC BELL CANADA'S PARENT CLOSED AT 3325 OFF 50 CENTS IN COMPOSITE
TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FOLLOWING THE RULING

THE REGULATORY PANEL SAID IT FOUND THAT BELL GENERALLY HAD UNDERESTIMATED
PROJECTED EARNINGS WHILE OVERESTIMATING EXPENSES AND THE IMPACT OF
COMPETITION IN THE COUNTRY'S LONGDISTANCE TELEPHONE MARKET IT SET BELL
CANADA'S ALLOWABLE RETURN ON COMMON EQUITY AT 11 TO 12 DOWN FROM THE
RANGE OF 1225 TO 1325 SET IN 1988 AND LOWER THAN THE 125 TO 135
REQUESTED BY THE COMPANY

THE COMMISSION ALSO DENIED BELL CANADA'S PROPOSAL FOR EXPANDED LOCAL CALLING
AREAS AROUND TORONTO MONTREAL AND OTTAWA THE PROPOSAL WOULD HAVE RAISED
BASIC SERVICE PRICES FOR MOST SUBSCRIBERS IN THOSE REGIONS 9308310026
930831 BUSINESS BRIEF COOPER COS OFFER IS COMMENCED TO SWAP DEBT
FOR NEW NOTES AND CASH

COOPER COS FORT LEE NJ SAID IT BEGAN AN OFFER TO EXCHANGE CERTAIN
DEBENTURES FOR NEWLY ISSUED NOTES AND CASH SUBJECT TO CERTAIN WAIVERS

THE MEDICAL PRODUCTS COMPANY SEEKS TO EXCHANGE 25 MILLION FACE AMOUNT OF
ITS 10625 CONVERTIBLE SUBORDINATED RESET DEBENTURES DUE 2005 FOR 700 FACE
AMOUNT OF A NEW ISSUE OF 975 SENIOR SUBORDINATED NOTES DUE 2003 AND 100
CASH FOR EACH 1000 FACE AMOUNT PLUS INTEREST ON THE DEBENTURES COOPER
HAD ABOUT 394 MILLION FACE AMOUNT OF DEBENTURES OUTSTANDING AS OF APRIL
30

THE COMPANY SAID IT EXPECTS TO REPORT A MATERIAL LOSS FOR THE FISCAL THIRD
QUARTER ENDED JULY 31 THE CONSECUTIVE QUARTERLY LOSS AUTOMATICALLY WOULD
TRIGGER A CLAUSE REQUIRING COOPER TO OFFER TO BUY BACK 15 MILLION OF
DEBENTURES AS EARLY AS OCT 25 AND A SIMILAR AMOUNT EVERY SIX MONTHS
THEREAFTER HOWEVER THE COMPANY SAID IT DOESN'T EXPECT TO HAVE THE CASH FOR
THE BUYBACK UNDER ITS EXCHANGE OFFER WHICH A MAJORITY OF DEBENTURE HOLDERS
MUST SUPPORT COOPER IS SEEKING A WAIVER OF THE DEBENTURE CLAUSE
9308310023 930831 MARKETING BRIEF PROVIDENCE JOURNAL CO CONCERN
SAYS IT WILL DIVIDE ASSETS INTO TWO COMPANIES

PROVIDENCE JOURNAL CO SAID IT PLANS TO DIVIDE ITS ASSETS INTO TWO SEPARATE
COMPANIES INCLUDING ONE WITH CABLE AND TELEVISION PROPERTIES THAT MAY GO
PUBLIC

STEPHEN HAMBLETT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CLOSELY HELD
CONCERN SAID IN A LETTER TO EMPLOYEES THAT THE TWO COMPANIES WOULD LIKELY
BE CALLED THE PROVIDENCE JOURNAL CO AND COLONY COMMUNICATIONS

PROVIDENCE JOURNAL CO WOULD CONTINUE TO CONTROL THE PROVIDENCE
JOURNALBULLETIN NEWSPAPER WHICH HAS A DAILY CIRCULATION OF 190000 AND
FOUR WHOLLY OWNED TELEVISION STATIONS

COLONY COMMUNICATIONS CURRENTLY A PROVIDENCE JOURNAL CO UNIT WOULD
CONTINUE TO OPERATE FIVE EXISTING TELEVISION STATIONS WHICH ARE JOINTLY
OWNED BY PROVIDENCE JOURNAL AND KELSO INC A NEW YORK CITY INVESTMENT
BANKING FIRM

COLONY ALSO WOULD CONTINUE TO OPERATE SEVEN CABLE COMPANIES IN EIGHT STATES
ONE OF WHICH IS JOINTLY OWNED WITH COPLEY/COLONY A CABLE OPERATOR IN SAN
DIEGO

THE COMPANY SAID NO LAYOFFS ARE PLANNED IF THE PLAN IS ACCEPTED BY THE
BOARD IT BE COMPLETED IN EARLY 1994 9308310022 930831 ECONOMY IMF
STRESSES US NEED TO CUT DEFICIT CALLING HEALTHCARE PROGRAM CRUCIAL' 
 BY WILLIAM MURRAY SPECIAL TO THE WALL STREET JOURNAL

WASHINGTON THE INTERNATIONAL MONETARY FUND IN A CONFIDENTIAL REVIEW OF
THE US ECONOMY SAID THE NEW DEFICITREDUCTION PROGRAM IS A SIGNIFICANT
STEP BUT ADDED IT IS CRUCIAL THAT PRESIDENT CLINTON'S HEALTHCARE PLAN
REDUCE THE DEFICIT FURTHER

THE IMF REPORT A COPY OF WHICH WAS OBTAINED BY THE WALL STREET JOURNAL
ALSO INDICATES THAT THE FUND'S NEW WORLDWIDE ECONOMIC FORECAST TO BE
RELEASED NEXT MONTH WILL SHOW SIGNIFICANT DOWNWARD REVISIONS FROM THE ONE
ISSUED IN APRIL

A PRELIMINARY ESTIMATE WHICH IS LIKELY TO BE LOWERED BEFORE THE FORECAST IS
FINAL SHOWS THE SEVEN MAJOR INDUSTRIALIZED COUNTRIES GROWING 15 THIS YEAR
AND 27 NEXT YEAR THE APRIL FORECAST PUT GROWTH AT 19 THIS YEAR AND 3
IN 1994 THE US RECOVERY HAS FALLEN SHORT OF IMF EXPECTATIONS AND THE
GERMAN RECESSION HAS PROVEN MORE SEVERE

IN A LENGTHY ANNUAL REVIEW OF THE US ECONOMY AND GOVERNMENT POLICIES AND A
SYNOPSIS OF CONVERSATIONS WITH TOP US POLICY MAKERS IMF OFFICIALS
EMPHASIZED THEIR VIEW THAT THE US MUST CONTINUE TO ATTACK THE DEFICIT

FROM A FISCAL STANDPOINT THE IMF SAID A TEST OF THE ADEQUACY OF THE
HEALTHCARE REFORMS WOULD BE THAT THEY DON'T AGGRAVATE THE FISCAL PROBLEM IN
THE SHORT RUN AND THAT THEY MAKE A SUBSTANTIAL CONTRIBUTION TO DEFICIT
REDUCTION OVER THE MEDIUM AND LONG TERMS

THE REPORT NOTES THAT CLINTON ADMINISTRATION OFFICIALS TOLD THE IMF IN JUNE
AND JULY THAT THE PRESIDENT'S HEALTHCARE REFORM PACKAGE IS DESIGNED TO
REDUCE THE DEFICIT OVER THE COMING YEARS WHILE SIMULTANEOUSLY OFFERING
HEALTH INSURANCE TO THOSE WHO DON'T HAVE ANY ADMINISTRATION OFFICIALS HAVE
SINCE SAID THAT THE HEALTH PLAN WILL LIMIT INCREASES IN SPENDING ON FEDERAL
MEDICARE AND MEDICAID PROGRAMS THEREBY HELPING TO REDUCE THE DEFICIT

REDUCING THE DEFICIT FURTHER BY FISCAL 1998 AND IMPOSING TIGHT CONTROLS ON
MANDATORY SPENDING THEREAFTER WOULD BE REQUIRED TO START TO REDUCE THE
DEBTTOGDP RATIO THE IMF SAID IMF ECONOMISTS LIKE MANY OTHERS ARGUE
THAT THE GOVERNMENT SHOULD BE AIMING TO REDUCE THE DEBTTOGDP RATIO GDP IS
THE TOTAL OF GOODS AND SERVICES PRODUCED IN THE US

THE CURRENT US DEBTTOGDP RATIO OF 596 ACCORDING TO THE IMF REPORT IS
EXPECTED TO RISE TO 65 BY THE END OF FISCAL 1998 AND CONTINUE RISING
THEREAFTER SINCE THE END OF WORLD WAR II US DEBT AS A PERCENTAGE OF GDP
HAD BEEN ON A STEADY DECLINE INTO FISCAL 1974 WHEN IT HIT 25 SINCE THEN
THE IMF NOTES THE RATIO HAS BEEN RISING

THE RISE IS LINKED TO RAPID GROWTH IN OUTLAYS FOR ENTITLEMENT PROGRAMS
PRIMARILY MEDICARE AND MEDICAID ALONG WITH THE COST OF RESOLVING THE
NATION'S SAVINGS AND LOAN CRISIS

THE IMF ALSO SAID THAT ITS ECONOMISTS WHO CONFERRED WITH FEDERAL RESERVE
CHAIRMAN ALAN GREENSPAN AND OTHER FED OFFICIALS IN PREPARING THEIR REPORT
EXPECT SHORTTERM INTEREST RATES WILL BEGIN TO RISE IN 1994

DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9308310021 930830 MR MADINI'S
NOSE KNOWS THE SECRETS OF OTHERS' PERFUMES  HE'D RATHER BLEND HIS
OWN BUT MODERN MOROCCANS DRIVE HIM TO OBSESSION  BY BARRY
NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL

TANGIER MOROCCO GOING FOR THE FACE THEN THE THROAT THEN THE CHEST
SOULAIMAN MADINI PUMPS SIX QUICK ROUNDS FROM HIS ATOMIZER GUN AT TWO SWEATY
MEN WHO HAVE STEPPED INTO HIS SHOP FROM THE SOUK'S DARK PASSAGEWAY SWEET
LEMONY MISTS ENGULF THEM

THIS IS MY PUBLICITY MR MADINI SAYS IT'S DIRECT LIKE A FAX ONE OF
THE MEN GRUNTS AS IF HE HAS BEEN MACED THE OTHER PLACES AN EMPTY BOTTLE ON
THE COUNTER AND SAYS OBSESSION

MR MADINI DOESN'T LIKE WHAT HE HAS TO DO NOW HE'D RATHER REACH UP TO THE
SHELF BEHIND HIM AND FILL THE BOTTLE FROM THE SPIGOT OF A JAR MARKED
TUBEROSE OR JASMINE BUT SPRAYON PUBLICITY FOR SCENTS CONJURED UP BY
HIS FAMILY FOR CENTURIES CAN'T OVERPOWER A SCRATCH CARD FROM CALVIN KLEIN

THE CUSTOMERS ARE OBSESSED

SO MR MADINI OPENS A CABINET AND REMOVES A DECANTER MARKED OBSESSION
TYPE WITH A SYRINGE HE DRAWS OUT THREE TAWNY OUNCES AND SQUIRTS THEM INTO
THE BOTTLE THEN DIGS OUT A PLASTIC LABEL THAT SAYS OBSESSION AND STICKS
IT ON MR KLEIN'S PRICE 60 TAX NOT INCLUDED MR MADINI'S PRICE 7 TAX
NOT MENTIONED

ENVELOPED IN A FAREWELL BLAST FROM THE ATOMIZER THE MEN LEAVE AND MR
MADINI'S HIGHVOLTAGE SMILE DIMS A FEW WATTS HE SAYS YOU CANNOT EXPLAIN
THE CHOICE IT'S MYSTERIOUS THEY SEE A MAN IN A MAGAZINE SO HANDSOME SO
NICE PUBLICITY IT MAKES THEIR MINDS UP THE MORE PUBLICITY THE MORE THEY
LIKE IT SOME PEOPLE WANT GOOD SMELLS SOME PEOPLE WANT ONLY PUBLICITY IN
TWO WORDS PERFUME IS NICE WORK BUT IT IS MYSTERIOUS WORK

THIS ISN'T QUITE THE MEANING OF MYSTERIOUS THAT PERFUME MAKERS HAVE IN
MIND WHEN THEY HIRE A SCULPTOR TO DESIGN A TWOOUNCE FLACON OF HANDPOLISHED
CRYSTAL IN THE SHAPE OF A MESOPOTAMIAN ZIGGURAT OR SEND A FASHION MODEL IN
A SAFARI SUIT TO STAND IN FRONT OF A DC3 ON A NORTH AFRICAN DESERT THAT
SORT OF MYSTERY RAISES PERFUME PRICES TO 20 TIMES THE COST OF THE STUFF IN
IT AT MR MADINI'S PARFUMERIE ORIENTAL THE MYSTERY COMES FREE

WOMEN IN VEILS AND MEN IN HOODS LEAD THE CAST OF TYPES PUSHING PAST HIS
DOORWAY DEEP IN THE SOUK'S MAZE KIDS SCREAM AND SHADOWY SHAPES WHISPER
YOU WANT HASHISH BLASTING BERBER TAPES PROVIDE THE SOUND EFFECTS THE
SMELLS COME FROM TWO DIRECTIONS MINT MOTORBIKES WOOD SMOKE SHEEP AND
SWEAT OUTSIDE THE PERFUMERY MUSK OAK MOSS SANDALWOOD OPIUM AND AMARIGE
INSIDE

THE SHOP IS NO BIGGER THAN A COUTURIER'S CLOSET IN A PLACE OF HONOR TO THE
LEFT OF THE FIXED PRICE SIGN RESTS A PHOTO OF MR MADINI'S LATE FATHER
KNEELING BEFORE MOROCCO'S LATE KING HAVING MIXED THEIR OWN FRAGRANCES IN
SAUDI ARABIA FOR A FEW HUNDRED YEARS THE MADINIS MIGRATED TO THIS SPOT IN
1906

MY FATHER MY GRANDFATHER HIS GRANDFATHER'S GRANDFATHER WE MAKE AND
SELL ALL OF US SAYS MR MADINI WHO IS 32 WHILE HIS FIVEYEAROLD SON
WATCHES HE SPENDS AN HOUR PASTING FANCY NAMES ONTO PLAIN BOTTLES ETERNITY
TRESOR SHALIMAR WE HAVE PERFUME IN OUR BLOOD HE SAYS WE MAKE AND
SELL ALWAYS

MAKING AND SELLING IS SURELY A VENERABLE ENTERPRISE BUT THE LABELS ARE A
STICKING POINT THE FANCY NAMES BELONG TO OTHERS

HE MAY BE A DELIGHTFUL PERSON BUT HE'S NO BETTER THAN A CRIMINAL AS FAR AS
I'M CONCERNED LOUIS SANTUCCI SAYS WHEN TOLD OF MR MADINI'S SHOP MR
SANTUCCI WORKS FOR THE COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION IN
WASHINGTON THIS GUY'S PROBABLY GOT A HOSE OUT THE BACK DOOR WHERE THE TANK
TRUCKS FILL UP HE SAYS

COULD BE THOUGH NO PIRATE HUNTER HAS EVER TRACED A SHIPMENT OF KNOCKOFF
PERFUME TO MR MADINI'S BACK DOOR HIS LAB IS EASY TO FIND IT'S JUST
UPSTAIRS YET HE RECOILS WHEN ASKED FOR A PEEK IT IS SECRET HE SAYS NO
ONE SEES NEVER AND APART FROM THE SPRAY GUN HIS BEST BURST OF PUBLICITY
CAME IN A BOOK ENTICINGLY TITLED THE ROGUE'S GUIDE TO TANGIER

ON THE OTHER HAND MR MADINI HAS HIS OWN IMAGE OF A ROGUE THE COMPANY THAT
PUTS A FASHION DESIGNER'S NAME ON AN AMPULE CONTAINING A DRAM OF ODORIFEROUS
LIQUID HYPES IT TO THE HEAVENS AND SELLS IT FOR A SCANDALOUS PRICE

HIS ONLY EXPORTS CONSIST OF AQUARIAN AGE STANDARDS PATCHOULI JASMINE
MUSK TO A STORE CALLED TALISMAN IN WOODSTOCK NY WHICH ALSO SELLS HIS
FAMILY'S IMMEMORIAL AND INEXPENSIVE MIXTURES BUT HERE HIS SALES ARE
MOSTLY KNOCKOFFS IF MR MADINI IS A ROGUE IN TANGIER BLAME MOROCCO'S
NATIVES THE SCRATCH CARD HAS GONE TO THEIR HEADS

WHEN I WAS SMALL MR MADINI SAYS PEOPLE CHOSE THEY MADE THEIR OWN
BLENDS SPECIAL STRONG SWEET SMELLS NOW THEY ARE SHOWN THE WAY IF YOU
MAKE SUCH MIXTURES NOBODY WILL BUY ONLY THE NAMES COUNT GOOD NAME GOOD
BOTTLE GOOD PACKAGE GOOD LUCK

THE PUBLICITY PLAGUE DESCENDED BY MR MADINI'S RECKONING WHEN MEN BEGAN TO
LET THEIR WIVES GO SHOPPING A WOMAN WOULD BRING IN A DROPLET OF SOME AIRY
PARISIAN ESSENCE GIVE HIM A WHIFF AND ASK HIM TO COPY IT SO HE DID

BIG SMELLALIKE OUTFITS LEGAL OR ILLEGAL DO THIS BY GAS CHROMATOGRAPHY
MR MADINI FOLLOWS HIS NOSE

ONE PERFUME CAN ENFOLD 600 AROMAS FROM ROSE TO MYRRH TO CIVET I SMELL IT
AND I KNOW WHAT'S IN IT SAYS MR MADINI THOUGH PACO RABANNE FOR MEN TOOK
TWO YEARS TO SNIFF OUT AS HE SPEAKS A WOMAN IN A HEAD SCARF ENTERS WITH AN
EMPTY FLASK OF DUNE MR MADINI PASSES IT UNDER HIS NOSE HE TELLS HER TO
COME BACK TOMORROW THE DUNE WILL BE RECREATED

BY NOW HE HAS BUILT A STOCKPILE STARTING WITH CHANEL NO 5 AND WORKING UP
TO ETERNITY DNA IS ON THE WAY MOST ARE DEAD RINGERS FOR THE ORIGINALS
WHEN A BEJEWELED WOMEN COMES IN TO TRY MR MADINI'S OFFTHESHELF LOULOU
SHE SAYS WHY BUY THE REAL ONE THIS SMELLS THE SAME LATER IN BLIND
TESTS OF THE GENUINE ARTICLES AGAINST MADINI RENDITIONS OF WHITE LINEN
OBSESSION BEAUTIFUL AND ANAIS ANAIS FIVE WESTERN WOMEN CAN'T SMELL THE
DIFFERENCE EITHER

BUT FOR MR MADINI COPYING CREATES NO SCENTS OF ACCOMPLISHMENT HE WOULD
RATHER SEE HIS OWN NAME IN LIGHTS ABOVE THE COUNTERS AT SAKS FIFTH AVENUE
WITH KENZO AND LIZ TAYLOR EVEN IF IT MEANS TEARING A PAGE FROM THE DETESTED
HANDBOOK OF HYPE

LOOK THIS IS ORANGE HE SAYS OPENING A JAR OF WHAT LOOKS LIKE SHOE
POLISH SOLID PERFUME MY CREATION NO ONE HAS IT HE UNBOXES A
JASMINEIMPREGNATED ROCK A NEW PRODUCT YOU CAN RUB IT ON PUT IN
DRAWERS

THE SMELLS ARE SWEET AND STRONG

IT'S EASY TO BE FAMOUS SAYS MR MADINI REMEMBER NESCAFE COFFEE FROM
HOT WATER A MIRACLE IT'S EASY TO GET PUBLICITY FOR NEW THINGS PEOPLE TRY
THEY ACCEPT THIS IS THE LESSON OF MARKETING

MAYBE THE PERFUMED ROCK WILL STONE THEM IN WOODSTOCK IN THE SOUK HOWEVER
MR MADINI HAS HAD TO SETTLE FOR ANOTHER WAY OF TUNING HIS INVENTIVE URGE TO
THE REDOLENT FORCES OF HIGH FASHION

A MAN HE KNOWS WELL WALKS IN WITH AN EMPTY BOTTLE MOVING ALONG HIS ROW OF
SPIGOTS MR MADINI FILLS IT WITH A LITTLE PACO RABANNE A FEW SQUIRTS OF
ANAIS ANAIS OPIUM AND ARAMIS AND A SHOT OF POISON

YOU SMELL IT YOU WILL LIKE IT HE SAYS GOOD PERFUMES ARE ALWAYS A
MIXTURE MR MADINI HOLDS THE BOTTLE UNDER THE MAN'S NOSE AND REACHES FOR
THE SPRAY GUN THE MAN SNIFFS PAYS AND LEAVES IN A LEMONY MIST
9308310020 930831 INTERNATIONAL NISSAN TOYOTA AND HONDA FACE S&P
DOWNGRADE  CREDITRATING AGENCY CITES CONDITIONS IN INDUSTRY 
STRONG YEN CUTS PROFIT  BY YUMIKO ONO STAFF REPORTER OF THE WALL
STREET JOURNAL

TOKYO STANDARD & POOR'S CORP SAID IT IS CONSIDERING LOWERING ITS CREDIT
RATINGS OF TOYOTA MOTOR CORP NISSAN MOTOR CO AND HONDA MOTOR CO'S US
OPERATIONS

STANDARD & POOR'S ASIA INC IN TOKYO ATTRIBUTED THE MOVE TO THE DRAMATIC
WORSENING OF ALREADY DIFFICULT AUTOINDUSTRY CONDITIONS JAPAN'S ECONOMIC
SLUMP AND THE YEN'S STRENGTHENING AGAINST THE DOLLAR IN THE PAST FEW MONTHS
HAVE HURT THE COMPANIES' PROFITS LEADING TO DISMAL EARNINGS RESULTS LAST
WEEK HONDA POSTED A 55 DROP IN GROUP PRETAX PROFIT FOR THE FIRST QUARTER
ENDED JUNE 30 WHILE TOYOTA SAID ITS GROUP PRETAX PROFIT FELL 25 FOR THE
YEAR ENDED JUNE 30 NISSAN REPORTED A PARENTCOMPANY PRETAX LOSS FOR THE
YEAR ENDED MARCH 31

THE STRONG YEN HURTS EXPORTERS BY MAKING THEIR PRODUCTS MORE EXPENSIVE IN
DOLLAR TERMS AND JAPAN'S AUTO MAKERS ARE FEELING THE BRUNT OF THAT PROBLEM
THEY ALSO ARE FACING PRESSURE FROM LOWPRICED MODELS RECENTLY LAUNCHED BY
US CAR MAKERS ON MONDAY THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION
ANNOUNCED THAT EXPORTS OF CARS TRUCKS AND BUSES DROPPED 14 IN JULY FROM A
YEAR EARLIER

S&P'S REVIEW IS A NOTABLE EVENT FOR TOYOTA WHICH HAS A TRIPLEA LONGTERM
DEBT RATING AND IS CONSIDERED A PILLAR OF JAPANESE INDUSTRY TOYOTA ALSO HAS
BEEN AGGRESSIVELY CUTTING COSTS IN AN ATTEMPT TO BOLSTER PROFIT

BUT THE YEN'S SOARING VALUE IS CRIMPING TOYOTA AS WELL AS NISSAN AND HONDA
SAID JONATHAN DOBSON AN ANALYST FOR JARDINE FLEMING SECURITIES LTD IF THE
EXCHANGE RATE REMAINS AT AROUND 105 YEN TO THE DOLLAR FOR THE NEXT SEVERAL
MONTHS BOTH TOYOTA'S AND HONDA'S OPERATING INCOME WILL GET VERY CLOSE TO
THE LINE IF NOT IN THE RED BY THE END OF THE CALENDAR YEAR HE SAID WHILE
NISSAN'S LOSSES WILL CONTINUE BUT IN THE LONG RUN MR DOBSON SAID THE
COMPANIES ARE BOUND TO RECOVER

REACTING TO S&P'S ANNOUNCEMENT THE THREE CAR MAKERS SAID THEY WILL CONTINUE
EFFORTS TO CUT COSTS A HONDA SPOKESMAN SAID THE COMPANY IS HOPING SALES OF
THE NEW ACCORD MODEL TO BE LAUNCHED THIS WEEK WILL HELP ITS PROFIT
PICTURE

S&P SAID TOYOTA'S AND ITS RELATED COMPANIES' TRIPLEA LONGTERM RATING
WHICH IS BEING PLACED ON CREDIT WATCH WITH NEGATIVE IMPLICATIONS WILL
AFFECT 19 BILLION OF ITS RATED LONGTERM DEBT THE COMPANY SAID A SIMILAR
REVIEW OF THE SINGLEA LONGTERM AND SINGLEA1 SHORTTERM RATINGS FOR
NISSAN AND ITS RELATED COMPANIES WILL AFFECT 65 BILLION IN LONGTERM DEBT
THE AGENCY ALSO PLACED UNDER REVIEW THE A1 SHORTTERM RATING OF AMERICAN
HONDA MOTOR CO AND OTHER HONDA GROUP COMPANIES S&P DIDN'T SAY HOW MUCH OF
HONDA'S SHORTTERM DEBT IS AFFECTED

A DOWNGRADE OF HONDA'S COMMERCIAL PAPER IN THE US LIKELY WOULD FORCE THE
AUTO MAKER TO PAY MORE FOR THE MONEY IT BORROWS AND MAKE CREDIT HARDER TO
OBTAIN THIS WOULD AFFECT HONDA'S ABILITY TO OFFER SUBSIDIZED LEASE PROGRAMS
AND HEAVY INCENTIVES TACTICS IT NEEDS TO BOLSTER SALES THROUGH JULY 31
HONDA'S US SALES WERE OFF 11 AT 395142 VEHICLES 9308310019 930831
CREDIT MARKETS BOND RALLY REGAINS STRENGTH IN THIN TRADING AS WEAK
HOMESALES DATA TRIGGER PRICE SURGE  BY ABBY SCHULTZ AND THOMAS T
VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL

NEW YORK STRENGTH RETURNED TO THE BOND MARKET RALLY YESTERDAY AND PRICES
BOUNCED BACK FROM FRIDAY'S LOSSES

WITH MANY TRADERS ON VACATION THE LOW TRADING VOLUME MAY HAVE EXAGGERATED
THE PRICE MOVES

THE BENCHMARK 30YEAR TREASURY BOND GAINED 3/8 POINT OR 375 ON A BOND
WITH 1000 FACE VALUE TO 101 28/32 THE YIELD WHICH MOVES IN THE OPPOSITE
DIRECTION OF THE PRICE DROPPED TO 611 FROM 614 THE PRICE OF THE
10YEAR NOTE ROSE MORE THAN 3/8 POINT TO 102 11/32 TO YIELD 543 DOWN FROM
549

MANY GOVERNMENTBOND TRADERS EXPECT MORE OF THE SAME THIS WEEK PRICES WILL
REMAIN LOFTY BUT TRADING WILL BE CHOPPY AS A HOST OF ECONOMIC RESULTS ARE
ABSORBED THEY SAID THE KEY RELEASE IS THE AUGUST EMPLOYMENT REPORT TO BE
RELEASED FRIDAY

THE MARKET SURGED BRIEFLY YESTERDAY ON A WEAK HOMESALE REPORT BEFORE
DRIFTING BACK A BIT BY THE END OF TRADING

THE COMMERCE DEPARTMENT REPORTED THAT SALES OF NEW HOMES DIDN'T RESPOND TO
RECORDLOW INTEREST RATES DROPPING 5 IN JULY TO A SEASONALLY ADJUSTED
ANNUAL RATE OF 629000 ECONOMISTS HAD EXPECTED A 1 TO 2 DROP

THE DAILY BONDPRICE FLUCTUATIONS HOWEVER HAVEN'T UNDERMINED HOPES FOR
EVER LOWER RATES

I CAN'T SEE ANYTHING STANDING IN THE WAY OF THE MARKET CONTINUING TO
RALLY SAID KATHY CAMILLI A MONEY MARKET ECONOMIST AT MARIA FIORINI
RAMIREZ INC

THE LANGUID ECONOMY IS STILL THE MAIN REASON THAT BOND INVESTORS ARE WILLING
TO SNAP UP LONGTERM SECURITIES WITH LOW RATES BUT TECHNICAL FACTORS HAVE
AS MUCH IF NOT MORE TO DO WITH THE MARKET'S RESILIENCE MS CAMILLI SAID

BY TECHNICAL FACTORS MS CAMILLI AND OTHER MARKET PARTICIPANTS MEAN BUYERS
WHO ARE SNAPPING UP TREASURY SECURITIES BECAUSE THEY HAVE TO NOT BECAUSE
THEY WANT TO

SUCH BUYERS INCLUDE PORTFOLIO MANAGERS FOR BOND MUTUAL FUNDS WHO MUST
INVEST FLOODS OF CASH FROM NEW INVESTORS AS SOON AS THEY CAN IN ORDER TO
KEEP YIELDS HIGH IN JULY BONDFUND SALES ROSE TO ABOUT 134 BILLION
COMPARED WITH 974 BILLION IN JUNE ACCORDING TO THE INVESTMENT COMPANY
INSTITUTE

THERE IS MORE MONEY FLOWING OUT OF BANKS AND INTO MUTUAL FUNDS THAN THERE
ARE SECURITIES FOR IT TO BE ABSORBED IN SAID MS CAMILLI THAT'S WHAT'S
REALLY DRIVING RATES LOWER

MICHAEL GRAY A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS SAID MOST OF THE
MONEY IS GOING INTO SHORTTERM AND INTERMEDIATETERM FUNDS SHORTERTERM
SECURITIES HAVE BEEN MORE EXPENSIVE THAN LONGTERM SECURITIES FOR SOME TIME
MEANING THEY HAVE HAD LESS ROOM TO MOVE AS THE MARKET RALLIES SAID MR
GRAY

PEOPLE ARE READING THAT BONDS ARE SETTING NEW RECORDS BUT THEY ARE BUYING
SHORTTERM SECURITIES WHICH ARE NOT REALLY PERFORMING AS WELL AS THE LONG
END MR GRAY SAID

BEGINNING TODAY SKEPTICS OF THE BOND MARKET RALLY COULD BE PUSHED INTO THE
MARKET ON NEWS OF CONTINUED ECONOMIC WEAKNESS THE COMMERCE DEPARTMENT WILL
BE REPORTING REVISED SECONDQUARTER GROSS DOMESTIC PRODUCT FIGURES THE
AVERAGE OF ESTIMATES OF ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS
REPORT CALLS FOR A DOWNWARD REVISION IN THE ANNUAL GDP GROWTH RATE TO 15
FROM 16

MEANWHILE YESTERDAY THE TREASURY SOLD 2387 BILLION OF THREEMONTH AND
SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD
AT AN AVERAGE DISCOUNT RATE OF 302 FOR A COUPONEQUIVALENT YIELD OF 308
COMPARED WITH 309 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT
AN AVERAGE DISCOUNT RATE OF 311 FOR A COUPONEQUIVALENT YIELD OF 320
COMPARED WITH 321 AT LAST WEEK'S AUCTION

HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND
26WEEK BILLS

RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE
VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER
BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR
WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR

BOTH ISSUES ARE DATED SEPT 2 THE 13WEEK BILLS MATURE DEC 2 1993 AND
THE 26WEEK BILLS MATURE MARCH 3 1994

FOR THE SECOND TIME THIS YEAR THE TENNESSEE VALLEY AUTHORITY SOLD DEBT
PAPER AT A YIELD VERY CLOSE TO THE YIELD ON US TREASURY PAPER LATE
YESTERDAY TVA ISSUED 150 MILLION OF THREEYEAR MEDIUMTERM NOTES AT PAR TO
YIELD 419 JUST 005 PERCENTAGE POINT ABOVE THREEYEAR TREASURY NOTES THE
NOTES NONCALLABLE FOR ONE YEAR WERE WON IN COMPETITIVE BIDDING BY
UNDERWRITERS LED BY MERRILL LYNCH

EARLIER THIS YEAR TVA SOLD TAXABLE TWOYEAR NOTES AT A YIELD EQUAL TO THAT
OF THE TWOYEAR TREASURY NOTE AFTER TAXES HOWEVER THESE NOTES WOULD HAVE
YIELDS LESS THAN THE TREASURY NOTES AND THOSE TWOYEAR NOTES WERE
NONCALLABLE WHICH MEANS THAT INVESTORS WERE GUARANTEED TO RECEIVE THAT
YIELD FOR TWO YEARS THE NOTES SOLD YESTERDAY WERE CALLABLE AFTER ONE YEAR
MEANING THAT IF RATES WERE TO DROP OVER THE NEXT YEAR TVA COULD CALL THE
NOTES ISSUERS OFTEN HAVE TO OFFER HIGHER YIELDS AS COMPENSATION FOR THE
RISK OF A CALL PROVISION THOUGH IT APPEARED THAT TVA DID NOT HAVE TO OFFER
VERY MUCH YESTERDAY

BECAUSE TVA IS CONSIDERED A GOVERNMENT AGENCY WITH THE IMPLICIT BACKING OF
THE US GOVERNMENT ITS DEBT IS UNRATED AND OFTEN COMES AT VERY NARROW
YIELD SPREADS TO COMPARABLE TREASURYS

INCLUDING OFFERINGS OF PREFERRED STOCK AND AGENCY DEBT MORE THAN 1 BILLION
OF CORPORATE DEBT WAS PRICED YESTERDAY

IN SECONDARY TRADING PRICES IN MARKETS FOR JUNK BONDS AND INVESTMENTGRADE
DEBT WERE MOSTLY UNCHANGED THROUGHOUT THE SESSION IN LIGHT TRADING

AMONG THE OTHER OFFERINGS YESTERDAY WAS A 350 MILLION ISSUE OF PERPETUAL
PREFERRED STOCK FROM CITICORP

SINCE PREFERRED STOCK PAYS A FIXED DIVIDEND IT IS VERY SIMILAR TO A
STRAIGHT BOND WHICH OFFERS SET COUPON PAYMENTS AND OFTEN IS PURCHASED BY
THE SAME TYPES OF INVESTORS AS BONDS

CITICORP PRICED 350 MILLION OF PERPETUAL PREFERRED STOCK WITH A 75
DIVIDEND YIELD FOURTEEN MILLION SHARES WERE OFFERED AT 25 EACH AND ARE NOT
CALLABLE FOR FIVE YEARS

RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD
& POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH
& CO

MOST MUNICIPAL BONDS WERE UNCHANGED IN SLOW ACTIVITY BUT A FEW LISTINGS
GAINED AS MUCH AS 1/4 POINT IN PRICE

STILL MARKET PARTICIPANTS WERE RELUCTANT TO READ TOO FAR INTO THE DAY'S
PRICE TREND TRADING WAS NEARLY AT A STANDSTILL A WEEK AHEAD OF THE LABOR
DAY HOLIDAY

AMONG ACTIVELY TRADED ISSUES NEW YORK STATE POWER AUTHORITY'S 525
GENERALPURPOSE BONDS DUE 2018 FINISHED UNCHANGED AT 98 1/2 YIELDING 534

IN THE PRIMARY MARKET TWO SIZABLE ISSUES WERE PRICED YESTERDAY
JACKSONVILLE FLA ELECTRIC AUTHORITY'S 3506 MILLION OF BONDS WERE PRICED
BY A BEAR STEARNS & CO GROUP INCLUDED IN THE OFFERING ARE 1689 MILLION
OF SERIES 1993A BULK POWER SUPPLY SYSTEM REVENUE BONDS WITH YIELDS RANGING
FROM 270 IN 1994 TO 545 IN 2021 THERE ARE ALSO 1817 MILLION OF SERIES
1993B ELECTRIC SYSTEM REVENUE REFUNDING BONDS WITH YIELDS RANGING FROM
270 IN 1994 TO 545 IN 2019

ORANGE COUNTY FLA'S 1815 MILLION OF SERIES 1993A AND 1993B SALESTAX
REVENUE REFUNDING BONDS AND REVENUE BONDS WERE SOLD THROUGH A SMITH BARNEY
SHEARSON GROUP INCLUDED ARE 531 MILLION SERIES 1993A REFUNDING BONDS AND
1284 MILLION SERIES 1993B REVENUE BONDS THE SERIES 1993A BONDS ARE PRICED
TO YIELD FROM 400 IN 1998 TO 537 IN 2016 AND THE SERIES 1993B BONDS ARE
PRICED TO YIELD FROM 418 IN 1999 TO 551 IN 2024

MORTGAGE SECURITIES FINISHED MIXED WITH THE SLIGHT GAINS IN THE SECTOR
LAGGING WELL BEHIND THOSE IN THE TREASURY MARKET

TO MANY INVESTORS THE MORTGAGE MARKET IS NOW TABOO AS RATES CONTINUE TO
HOLD AT LOWS NOT SEEN FOR NEARLY 30 YEARS THERE ARE FEWER MORTGAGE ISSUES
DEEMED SAFE FROM PREPAYMENTS

WHEN A HOMEOWNER REFINANCES HIS LOAN A NEW LOAN IS CREATED AS THE OLD ONE
IS PAID OFF THAT MEANS THE SECURITY CREATED FROM THE OLD LOAN IS CALLED
BEFORE MATURITY OR PREPAID THE INVESTOR NOT ONLY LOSES ANY PREMIUM OVER
FACE VALUE HE PAID FOR THE ISSUE BUT HE ALSO HAS TO REINVEST HIS MONEY IN A
LOWERRATE ENVIRONMENT

UNTIL RECENTLY THE HIGHERCOUPON SECURITIES SUCH AS 7 1/2 COUPONS AND
ABOVE WERE THOUGHT TO BE MOST SUSCEPTIBLE TO PREPAYMENTS BECAUSE THEY
REPRESENTED LOANS OF 8 OR HIGHER THAT WOULD BE TEMPTING TO REFINANCE BUT
NOW EVEN LOWER COUPONS ARE SUFFERING PREPAYMENT FEAR

AMONG PRICES OF COUPONS FOR SEPTEMBER DELIVERY GINNIE MAE 6 SECURITIES
CLIMBED 4/32 TO 98 23/32 WHILE FREDDIE MAC GOLD 6 AND FANNIE MAE 6
SECURITIES WERE UNCHANGED AT 92 24/32 AND 98 20/32 RESPECTIVELY THE 8
COUPONS FELL 1/32 TO 3/32

JACQUELINE DOHERTY CONTRIBUTED TO THIS COLUMN 9308310018 930831
TRANSCANADA SEEKS TO BUILD GAS PIPELINE WITH SIERRA PACIFIC

CALGARY ALBERTA TRANSCANADA PIPELINES LTD AND SIERRA PACIFIC RESOURCES
CO APPLIED TO THE US FEDERAL ENERGY REGULATORY COMMITTEE FOR APPROVAL TO
BUILD A GAS PIPELINE FROM MALIN ORE TO RENO NEV

THE COMPANIES SAID THEY PROPOSE TO BUILD A 229MILE PIPELINE COSTING 125
MILLION TO DELIVER 111 MILLION CUBIC FEET OF CANADIAN GAS A DAY TO
RESIDENTIAL AND INDUSTRIAL CUSTOMERS IN NORTHEASTERN CALIFORNIA AND THE RENO
AREA THEY SAID THE NEW PIPELINE WOULD BE FED BY A RECENTLY EXPANDED
PIPELINE OF PACIFIC GAS TRANSMISSION CO A UNIT OF PACIFIC GAS & ELECTRIC
CO WHICH SHIPS CANADIAN GAS TO CALIFORNIA AND THE PACIFIC NORTHWEST

THE TWO COMPANIES HAVE FORMED A PARTNERSHIP TUSCARORA GAS TRANSMISSION CO
TO BUILD OWN AND OPERATE THE PIPELINE TRANSCANADA A PIPELINE COMPANY
SAID IT OWNS 50 OF TUSCARORA WHICH PRESENTLY HAS NO ASSETS SIERRA
PACIFIC A RENO ENERGY HOLDING COMPANY OWNS THE REMAINING 50 9308310017
930831 KEY INTEREST RATES

ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL
RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY AUGUST 18 1993
CYIELDS ADJUSTED FOR CONSTANT MATURITY 9308310016 930806 CUTTING COSTS
 FOR TAKEOVER BARON REDWOOD FORESTS ARE JUST ONE MORE DEAL  
HURWITZ WANTS US TO BUY HIS TREES FOR 600 MILLION OR HE'LL LET
CHAINSAWS IN  HOUDINI OF HIGH FINANCE'  BY CHARLES MCCOY 
STAFF REPORTER OF THE WALL STREET JOURNAL

IT IS A PROPOSAL THAT BRINGS NEW MEANING TO THE TERM GREENMAIL

FINANCIER CHARLES HURWITZ WANTS THE US GOVERNMENT TO PAY HIM HUNDREDS OF
MILLIONS OF DOLLARS FOR 4500 ACRES OF THE ANCIENT REDWOODS IN A REMOTE
CALIFORNIA GROVE KNOWN AS THE HEADWATERS FOREST OTHERWISE HE SAYS HE WILL
PRESS AHEAD WITH HIS PLANS TO CUT THE TREES DOWN

IT'S NOT JUST A FANTASY THIS WEEK A BILL WAS INTRODUCED IN CONGRESS TO BUY
AS MUCH AS 44000 ACRES FROM MR HURWITZ INCLUDING THE HEADWATERS ALTHOUGH
A PRICE HASN'T BEEN SPELLED OUT AND MR HURWITZ SCOFFS AT THE LEGISLATION
HIS REPRESENTATIVES SAY HE WANTS ABOUT 600 MILLION FOR THE HEADWATERS TRACT
ALONE

MR HURWITZ WHO CONTROLS NORTHERN CALIFORNIA'S PACIFIC LUMBER CO THROUGH
HIS 31OWNED CONGLOMERATE MAXXAM INC HAS BECOME PUBLIC ENEMY NO 1 TO
SOME ENVIRONMENTALISTS FOR HIS STAND ON HEADWATERS AND FOR PACIFIC LUMBER'S
HEAVY AND POSSIBLY ILLEGAL LOGGING IN OTHER PARTS OF CALIFORNIA IN RECENT
YEARS JUNK BONDS REP DAN HAMBURG WHO INTRODUCED THE BILL TO BUY THE
FOREST ACKNOWLEDGES THAT IT IS DISTASTEFUL TO MANY PEOPLE TO GIVE MR
HURWITZ A TAXPAYERFUNDED WINDFALL FOR THE TREES BUT THE ALTERNATIVE IS TO
LOSE AN ENVIRONMENTAL TREASURE SAYS THE CALIFORNIA DEMOCRAT

MAXXAM IS A CREATURE OF THE 1980S TAKEOVER AND JUNKBOND FRENZY AND REMAINS
HEAVILY INDEBTED ENVIRONMENTAL OPPOSITION HAS SLOWED PACIFIC LUMBER'S
LOGGING AND MAXXAM'S OTHER MAIN BUSINESS ALUMINUM IS SWOONING BECAUSE OF
WORLDWIDE PRICE CUTTING MR HURWITZ COULD USE THE SALE OF THE HEADWATERS
TO MAKE MAXXAM FINANCIALLY HEALTHY

DON'T BE SURPRISED IF HE PULLS IT OFF THE 53YEAROLD HOUSTON BUSINESSMAN
HAS GOTTEN INTO AND OUT OF MORE CONTROVERSIES THAN ALMOST ANY OTHER MAJOR
FINANCIAL PLAYER OF THE PAST DECADE HE IS STILL BEING SUED BY INVESTORS WHO
CLAIM HE COMMITTED FRAUD IN THE TAKEOVER OF PACIFIC LUMBER AND HE IS STILL
NEGOTIATING A SETTLEMENT WITH THE FEDERAL DEPOSIT INSURANCE CORP OVER THE
COLLAPSE OF UNITED SAVINGS ASSOCIATION OF TEXAS MR HURWITZ CONTROLLED 23
OF THE PARENT OF UNITED SAVINGS WHOSE DEMISE MAY COST TAXPAYERS AS MUCH AS
16 BILLION

MORE RECENTLY MAXXAM SHAREHOLDERS HAVE ACCUSED HIM OF CUTTING HIMSELF SWEET
DEALS AT THEIR EXPENSE ON FOUR OCCASIONS HE HAS BEEN ACCUSED BY REGULATORS
OR INVESTORS OF LOOTING FIRMS HE CONTROLLED SOME OF THE ACTIONS ARE
PENDING OTHERS WERE SETTLED WITH MR HURWITZ DENYING ANY GUILT HE NOT
ONLY SURVIVES BUT SEEMS CLOSE TO SHORING UP HIS TROUBLED EMPIRE

THIS GUY IS THE HOUDINI OF HIGH FINANCE SAYS CRAIG GILMORE HEAD OF
GILMORE & CO AN INVESTMENT ADVISER IN CARLSBAD CALIF

IN A RARE INTERVIEW MR HURWITZ DEFENDS PACIFIC LUMBER'S ENVIRONMENTAL
RECORD AND HIS OTHER CORPORATE PRACTICES AND COMPLAINS THAT HE HAS BEEN
UNFAIRLY BRANDED BY RADICAL ENVIRONMENTALISTS AND A HOSTILE PRESS I'M AS
MUCH AN ENVIRONMENTALIST AS ANYBODY IN THE WORLD HE DECLARES HE DENIES
ANY WRONGDOING IN THE VARIOUS LAWSUITS AND REGULATORY MATTERS IN WHICH HE
HAS BEEN INVOLVED HE ARGUES THAT THERE ARE PLENTY OF OLD REDWOODS ALREADY
PROTECTED IN PARKS AND THAT LOGGING IN THE HEADWATERS DOESN'T POSE A
SIGNIFICANT THREAT TO THE SPECIES

AS FOR REP HAMBURG'S BILL MR HURWITZ IS BLUNT IT'S RIDICULOUS HE
SAYS WHILE PACIFIC LUMBER IS WILLING TO PART WITH THE HEADWATERS SELLING
OFF 44000 ACRES NEARLY A FIFTH OF THE COMPANY'S TIMBERLANDS ISN'T IN
THE CARDS HE SAYS THE LAW OF THE LAND IS NOT TO STEAMROLL OWNERS OF
PRIVATE PROPERTY

EVEN TO MANY WHO KNOW HIM MR HURWITZ SEEMS A PERPLEXING MIX HE IS A QUIET
MAN AN ACKNOWLEDGED MASTER AT SNIFFING OUT DEALS A GENEROUS CONTRIBUTOR TO
HOUSTON CHARITIES AND ALMOST AUSTERE IN HIS PERSONAL HABITS NO LIMOS NO
CORPORATE JETS NO GAUDY DISPLAYS OF WEALTH

HE SEEMS CONSUMED BY HIS WORK WHEN SOMETHING STRIKES HIS FANCY AND THE
FIRST STIRRINGS OF A POSSIBLE DEAL BEGIN TO SUGGEST THEMSELVES HE OFTEN
EXCLAIMS THERE'S A PONY IN THERE FRIENDS SAY HE IS SO DRIVEN TO SUCCEED
THAT HE CAN DEVELOP A SORT OF TUNNEL VISION HE IS CAPABLE OF INTENSE
FOCUS AND SOMETIMES HE MAY NOT FORESEE HOW SOME OF HIS ACTIONS WILL LOOK TO
THE REST OF THE WORLD SAYS WALTER FITZGERALD AN ADMIRER AND FORMER
ADVISER

REDWOODS ARE PROVING TO BE BOTH MR HURWITZ'S SALVATION AND HIS BIGGEST
HEADACHE HE ACQUIRED THE COUNTRY'S LARGEST PRIVATE REDWOOD FORESTS IN HIS
RAID ON TREERICH PACIFIC LUMBER IN 1985 TWO YEARS AFTER TAKING CONTROL OF
UNITED SAVINGS

THE RAID BECAME AN EXEMPLAR OF 1980SSTYLE FINANCE HE BLITZED A SLEEPY
UNDERVALUED OLD COMPANY FAMOUS FOR ITS ENVIRONMENTALLY CONSCIOUS LOGGING
PRACTICES SUSPICIONS OF INSIDER TRADING ABOUNDED INCLUDING ALLEGATIONS
INVOLVING JUNKBOND KING MICHAEL MILKEN AND TRADER IVAN BOESKY MAXXAM
BOUGHT CONTROL FOR ABOUT 900 MILLION MOSTLY IN JUNK BONDS MR MILKEN
FLOATED IN HIS FIRST MEETING WITH PACIFIC LUMBER EMPLOYEES MR HURWITZ
TOLD THEM THERE'S A STORY ABOUT THE GOLDEN RULE HE WHO HAS THE GOLD
RULES

UNDER MR HURWITZ PACIFIC LUMBER BEGAN CUTTING DOWN REDWOODS AT TWICE THE
COMPANY'S HISTORIC PACE TO PAY DOWN DEBT PACIFIC LUMBER HAS BEEN WARRING
WITH ENVIRONMENTALISTS EVER SINCE PACIFIC LUMBER SAYS KATHY BAILEY A
SIERRA CLUB FORESTRY EXPERT IS THE ARCHENEMY

THE LATEST BATTLEGROUND IS OWL CREEK A FEW MILES SOUTHEAST OF THE
HEADWATERS AT 465 ACRES OWL CREEK IS THE SECOND LARGEST STAND OF PRIVATELY
OWNED ANCIENT REDWOODS IN THE US BEHIND ONLY THE HEADWATERS IT IS ALSO
ONE OF THE LAST KNOWN HABITATS OF THE MARBLED MURRELET A RARE COASTAL BIRD
PROTECTED UNDER STATE AND FEDERAL ENDANGEREDSPECIES LAWS

IN JUNE AND NOVEMBER OF 1992 OVER WEEKENDS AND HOLIDAYS WHEN WILDLIFE
REGULATORS WEREN'T WORKING PACIFIC LUMBER CUT DOWN HUNDREDS OF REDWOODS AND
FIRS IN OWL CREEKDESPITE WARNINGS FROM REGULATORS THAT DOING SO MIGHT
VIOLATE WILDLIFE PROTECTION LAWS AND DESPITE PREVIOUS AGREEMENTS THAT
REGULATORS INSIST COMMITTED THE COMPANY TO HOLD OFF LOGGING

PACIFIC LUMBER CLAIMS THAT ENVIRONMENTALISTS AND WILDLIFE AGENCIES ARE
VIOLATING ITS PROPERTY RIGHTS IT CITES PERMITS IT HAS RECEIVED FROM
CALIFORNIA'S BOARD OF FORESTRY TO LOG AT OWL CREEK THIS IS AN EXAMPLE OF
GOVERNMENT OUT OF CONTROL FUMES THOMAS HERMAN PACIFIC LUMBER'S RESOURCES
MANAGER CHIEF EXECUTIVE AND PRESIDENT JOHN CAMPBELL SAYS THE COMPANY IS IN
THE FINAL STAGES OF DEVELOPING A LONGTERM PLAN FOR MANAGING THE MARBLED
MURRELET'S HABITAT TO ASSURE THAT NONE OF ITS LOGGING EVER JEOPARDIZES THE
BIRD

ENVIRONMENTALISTS SUED PACIFIC LUMBER IN SAN FRANCISCO FEDERAL COURT AND
THE FISH & WILDLIFE SERVICE SAYS IT IS CONSIDERING SEEKING CRIMINAL CHARGES
SAYS JAMES STEELE THE TOP STATE BIOLOGIST FOR OWL CREEK THEY BASICALLY
CONDUCTED SNEAK ATTACKS OUT THERE

THAT KIND OF CHARGE HAS HAUNTED MR HURWITZ DURING HIS ENTIRE CAREER HE HAS
BEEN SUED BY THE SECURITIES AND EXCHANGE COMMISSION FOR ALLEGED STOCK
MANIPULATION IN A 1971 CASE SETTLED BY CONSENT DECREE WHILE DENYING ANY
GUILT CHARGED BY NEW YORK STATE REGULATORS IN 1977 WITH LOOTING AN
INSURANCE COMPANY SETTLED BY PAYING 400000 WHILE DENYING ANY WRONGDOING
SUED BY INVESTORS FOR ALLEGEDLY COMMITTING FRAUD IN THE TAKEOVER OF PACIFIC
LUMBER TWO SUITS PENDING AND SUED BY THE LABOR DEPARTMENT FOR ALLEGEDLY
INVESTING PACIFIC LUMBER'S PENSION FUND WITH EXECUTIVE LIFE INSURANCE CO IN
RETURN FOR JUNKBOND FINANCING OF THE TAKEOVER PENDING EXECUTIVE LIFE
LATER COLLAPSED IMPERILING PAYMENTS TO RETIREES PACIFIC LUMBER IS MAKING
UP THE SHORTFALL WHILE EXECUTIVE LIFE IS BEING SOLD

MOST OF THE LITIGATION BEGAN IN THE 1980S IN THE 1990S MR HURWITZ HAS
KEPT A MUCH LOWER PROFILE BUT AGAIN FACES LAWSUITS THIS TIME FOR ALLEGEDLY
LOOTING MAXXAM AT SHAREHOLDERS' EXPENSE

A FOCUS OF THAT ACTION IS THE DESERT TOWN OF RANCHO MIRAGE CALIF LOCALS
HAVE BATTLED MR HURWITZ FOR A DECADE OVER HIS EFFORTS TO BUILD A COMPLEX OF
LUXURY HOMES AND A HOTEL CALLED MIRADA LOT SALES AND CONSTRUCTION HAVE
BEEN SLOW

THE MIRADA PROPERTY WAS ORIGINALLY OWNED BY FEDERATED DEVELOPMENT CO A
COMPANY WHOLLY OWNED BY MR HURWITZ AND HIS FAMILY FEDERATED BORROWED
HEAVILY FROM MAXXAM TO FUND THE PROJECT IN 1991 THE PROJECT'S POOR
PERFORMANCE PUT FEDERATED ON THE EDGE OF DEFAULTING ON 343 MILLION IN
LOANS AND INTEREST IT OWED MAXXAM MAXXAM'S BOARD WHICH MR HURWITZ CHAIRS
FORGAVE THE LOANS AND PAID FEDERATED AN ADDITIONAL 86 MILLION FOR THE
MIRADA PROJECT THE BOTTOM LINE A COMPANY THAT MR HURWITZ OWNED ELIMINATED
ITS MIRADA DEBT RECEIVED AN INFUSION OF NEW FUNDS AND GOT RID OF A
FLOUNDERING PROJECT ALL AT THE EXPENSE A LAWSUIT ALLEGES OF MAXXAM'S
SHAREHOLDERS

ON ANOTHER OCCASION MR HURWITZ TOOK ADVANTAGE OF AN UNUSUAL OPTION DEAL
FUNDED BY MAXXAM AFFILIATES THAT ENABLED HIM TO INCREASE HIS MAXXAM
HOLDINGS BY A THIRD HE PAID ONLY 1040 A SHARE FOR ABOUT A MILLION SHARES
OF STOCK THAT WAS THEN TRADING AT ABOUT 35 CRITICS COMPLAINED THAT HE
SHOULD HAVE SHARED THE STOCK WINDFALL WITH OTHER HOLDERS MR HURWITZ NOW
HAS 60 VOTING CONTROL THROUGH COMMON AND PREFERRED SHARES

BOTH EPISODES LED TO SHAREHOLDER SUITS PENDING IN DELAWARE CHANCERY COURT
THE DEALS STINK SAYS LESTER C HOUTZ AN ATTORNEY FOR DALLAS TYCOON AND
MAXXAM HOLDER HAROLD SIMMONS AT MIRADA HURWITZ JUST STUCK MAXXAM'S OTHER
SHAREHOLDERS WITH A WHITE ELEPHANT THAT WAS ABOUT TO STEP RIGHT ON HIM MR
HURWITZ SAYS NEITHER SUIT HAS ANY MERIT AND PREDICTS THAT THE WORLDCLASS
MIRADA PROJECT WILL PAY OFF BIG FOR MAXXAM SOMEDAY I DON'T SELFDEAL  
AND WE'D NEVER DO ANYTHING TO THE DETRIMENT OF MAXXAM HOLDERS HE SAYS I
AM THE BIGGEST ONE

DESPITE THE SHAREHOLDER DISPUTES MR HURWITZ KEEPS ATTRACTING NEW
INVESTORS AS DISPLAYED IN THE APRIL REFINANCING OF 510 MILLION OF PACIFIC
LUMBER JUNK BONDS THE BONDS WERE COSTING MORE THAN 12 A YEAR AND PAYMENTS
TOTALING ABOUT 4823 MILLION WERE DUE BEGINNING IN 1993 MANY WALL
STREETERS FIGURED THAT MR HURWITZ WOULD HAVE TO SELL ASSETS TO MEET
PAYMENTS SOME THOUGHT IT MIGHT SIGNAL THE UNRAVELING OF HIS EMPIRE

MR HURWITZ PROPOSED SPINNING OFF MOST OF PACIFIC LUMBER'S LAND INTO A NEW
COMPANY AND OFFERING 360 MILLION OF BONDS OF THAT NEW ENTITY THE SOLE
SOURCE OF REPAYMENT PROCEEDS FROM SELLING LOGS TO PACIFIC LUMBER AT A
PACE THAT IMPLI CUTTING AT WELL ABOVE THE COMPANY'S PRETAKEOVER LEVELS HE
ALSO OFFERED 200 MILLION OF NEW PACIFIC LUMBER BONDS

RARELY HAS AN EXERCISE IN CORPORATE REFINANCING STIRRED UP SO MUCH
RESISTANCE FOR STARTERS PACIFIC LUMBER'S CONSTANT WARFARE WITH
ENVIRONMENTALISTS AND UNCERTAINTY OVER FEDERAL TIMBER POLICY GAVE MANY
INVESTORS PAUSE THE SIERRA CLUB THE WILDERNESS SOCIETY AND OTHERS
DENOUNCED THE REFINANCING AND APPEALED TO CONGRESS TO BLOCK IT REP FORTNEY
STARK D CALIF INTRODUCED LEGISLATION TO FOIL THE REFINANCING BY
SLAPPING A 75 EXCISE TAX ON REDWOODS CUT TO PAY BONDS

MR HURWITZ SCRAMBLED HIS LOBBYISTS INCLUDING FORMER JIMMY CARTER AIDE
STUART EIZENSTAT RECENTLY NOMINATED BY THE CLINTON ADMINISTRATION TO BE THE
US REPRESENTATIVE TO THE EUROPEAN COMMUNITY AND FORMER CALIFORNIA
CONGRESSMAN DOUG BOSCO THEY LOBBIED AGAINST REP STARK'S BILL IT STILL
HASN'T GOTTEN OUT OF COMMITTEE

MR HURWITZ NOT ONLY COMPLETED HIS REFINANCING SAVING MAXXAM AT LEAST 20
MILLION A YEAR IN INTEREST BUT INCREASED THE OFFERING TO A TOTAL OF 610
MILLION AND PACIFIC LUMBER PAID MAXXAM AT LEAST 25 MILLION IN SPECIAL CASH
DIVIDENDS

THE DEAL CAME AT A VITAL TIME FOR MR HURWITZ BECAUSE OF RECENT PROBLEMS AT
MAXXAM ESPECIALLY DIVING ALUMINUM PRICES MAXXAM STOCK HAS SLIPPED TO 30 A
SHARE FROM A HIGH OF 50 IN LATE 1991 MR HURWITZ'S STAKE EXCLUDING
PREFERRED SHARES IS WORTH ABOUT 84 MILLION TODAY WITH MAXXAM'S NEW
BREATHING ROOM MANY IN WALL STREET THINK THE CONGLOMERATE MAY HAVE A
BREAKUP VALUE OF 100 A SHARE IF THE ECONOMY RECOVERS WHICH WOULD PUT HIS
EQUITY STAKE ALONE AT ABOUT 280 MILLION

MR HURWITZ COMMANDS REMARKABLE FEALTY ON WALL STREET TAKE THE
REFINANCING IT MAKES VERY LITTLE ECONOMIC SENSE TO BOND BUYERS BECAUSE OF
ALL THE UNCERTAINTY AROUND FUTURE LOGGING LEVELS SAYS PETER THORNTON AN
ANALYST WITH DUFF & PHELPS BUT IT FLEW BECAUSE HURWITZ HAS MANY BELIEVERS
ON WALL STREET ADDS MR GILMORE THE CALIFORNIA ADVISER THE GUY MAKES
SOME GREAT DEALS SAY WHAT YOU WILL ABOUT HIM

AT A NEW YORK LUNCH LAST YEAR MR HURWITZ WAS SURROUNDED BY ADMIRING WALL
STREETERS ACCORDING TO ATTENDEES MR HURWITZ TOOK IN THE PLAUDITS AND
OBSERVED WAIT TILL YOU SEE WHAT HAPPENS WITH PACIFIC LUMBER IT'S GOING
TO BE WORTH A WHOLE LOT MORE THAN YOU THINK  A WHOLE LOT THE REDWOOD
FOREST HE MAY HAVE BEEN THINKING OF THE HEADWATERS FOREST IN CALIFORNIA

HIGH IN THE MOUNTAINS ABOVE FORTUNA 4500 ACRES OF GIANT ANCIENT REDWOODS
AND DOUGLAS FIRS TOWER ABOVE A CRYSTAL TORRENT CALLED SALMON CREEK

FOR NEARLY FIVE YEARS MR HURWITZ HAS BEEN THREATENING TO LOG IN THE
HEADWATERS UNLESS HE IS PAID BIG MONEY PRIVATELY SOME OF HIS ADVISERS
CONCEDE THEY PROBABLY COULDN'T CUT THERE BECAUSE OF THE ENVIRONMENTAL OUTCRY
IT WOULD PROVOKE YET HIS LOBBYISTS HAVE BEEN TRYING TO WORK OUT A DEAL WITH
THE FEDERAL GOVERNMENT UNDER WHICH MR HURWITZ COULD GET ROUGHLY 600
MILLION FOR THE HEADWATERS MAXXAM PAID 900 MILLION FOR ALL OF PACIFIC
LUMBER INCLUDING ITS 196000 ACRES OF PRIME TIMBERLANDS OF WHICH
HEADWATERS REPRESENTS ONLY A SMALL FRACTION

AT TODAY'S HIGH PRICES FOR TOPGRADE REDWOOD SOME TIMBER SPECIALISTS FIGURE
THE TREES MAY INDEED BE WORTH 600 MILLION OTHERS SAY THAT FIGURE IS
GROSSLY INFLATED

IT'S FALLACIOUS TO BASE A PRICE ON WHAT HEADWATERS COULD COMMAND AS LUMBER
SINCE IN ALL LIKELIHOOD IT CAN NEVER BE LOGGED SAYS JOHN DEWITT HEAD OF
SAVE THE REDWOODS WHICH SPECIALIZES IN BUYING AND PRESERVING REDWOODS HE
FIGURES THE TREES SHOULD GO FOR AT MOST 100 MILLION BASED ON HISTORIC
PRICES FOR PARKLANDS MR DEWITT AND OTHER ENVIRONMENTALISTS THOUGH LOATH
TO REWARD MR HURWITZ ARGUE THAT NOT PROTECTING THE HEADWATERS PERMANENTLY
THROUGH A BUYOUT LEAVES IT OPEN TO THE RISK THAT WILDLIFE LAWS THE
POLITICAL CLIMATE OR PUBLIC ATTITUDES MIGHT SOME DAY CHANGE ENABLING MR
HURWITZ TO DO WHATEVER HE WISHES IN THE FOREST

REP HAMBURG'S BILL WHICH HAS 80 COSPONSORS WOULD AUTHORIZE THE GRADUAL
PURCHASE OF 44000 ACRES OF PACIFIC LUMBER LAND INCLUDING THE HEADWATERS
ALTHOUGH THE LEGISLATION DOESN'T SPECIFY HOW THE PURCHASES WOULD BE
FINANCED HEADWATERS OWL CREEK AND OTHER REMNANTS OF PACIFIC LUMBER OLD
GROWTH WOULD BE PRESERVED THE REMAINING ACREAGE WOULD BE MANAGED BY THE
FOREST SERVICE

MR HURWITZ SAYS THAT HE RECENTLY TRAMPED A SHORT WAY INTO THE HEADWATERS
AND HIMSELF MARVELED REDWOODS ARE BEAUTIFUL HE OBSERVES ALL TREES ARE
BEAUTIFUL BUT HE STILL THINKS THE LAND SHOULD BE LOGGED UNLESS SOMEONE
BUYS IT UP THESE ARE NOT THE LAST TREES OF THEIR KIND IN THE WORLD SEE
RELATED LETTER LETTERS TO THE EDITOR ENVIRONMENTAL RESPECT IS OUR
OPERATING MAXIM WSJ AUG 31 1993 9308060078 YY93 MM08 9308310015
930831 LAW LEGAL BEAT DEFENSE LAWYERS DECRY ATTEMPT TO SEIZE LAW
FIRMS IN DRUG CASE  BY WADE LAMBERT STAFF REPORTER OF THE WALL
STREET JOURNAL

DEFENSE ATTORNEYS ARE UP IN ARMS OVER THE DRUGTRAFFICKING PROSECUTION OF
TWO LAWYERS AND AN UNUSUAL MEASURE SOUGHT BY THE GOVERNMENT SEIZING CONTROL
OF THE ATTORNEYS' LAW FIRMS

THE CASE FILED BY FEDERAL PROSECUTORS IN RENO NEV IS SEEN BY MANY
LAWYERS AS AN EXAMPLE OF THE BAD BLOOD BETWEEN THE CRIMINAL DEFENSE BAR AND
LAWENFORCEMENT OFFICIALS IN THE FIGHT AGAINST DRUGS THE DRAMATIC ARREST OF
ONE OF THE LAWYERS PATRICK HALLINAN AT GUNPOINT IN A RAID AT HIS HOME AUG
6 BECAME A RALLYING POINT AT THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE
LAWYERS' CONVENTION A WEEK LATER

MR HALLINAN OF SAN FRANCISCO AND RENO LAWYER JACK S GRELLMAN ARE ACCUSED
OF TAKING PART IN A DRUGSMUGGLING AND MONEYLAUNDERING RING THAT INVOLVED
ONE OF MR HALLINAN'S FORMER CLIENTS THE FORMER CLIENT PLEADED GUILTY IN
1990 AND AGREED TO COOPERATE WITH PROSECUTORS APPARENTLY AIDING THEM IN
BRINGING CHARGES AGAINST THE TWO LAWYERS

MESSRS HALLINAN AND GRELLMAN ARE ACCUSED OF HELPING LAUNDER DRUG MONEY
THROUGH OFFSHORE BANKS AND REALESTATE TRANSACTIONS MR HALLINAN WHO FACES
MORE CHARGES THAN MR GRELLMAN ALSO IS ACCUSED OF HAVING SUGGESTED THAT HIS
FORMER CLIENT KILL A WITNESS WHO WAS COOPERATING WITH PROSECUTORS

SUPPORTERS OF THE TWO ATTORNEYS INSIST THEY WILL BE CLEARED AND SAY
PROSECUTORS ARE USING THE CASE TO PUNISH LAWYERS WHO DEFEND DRUG CASES THE
SAN FRANCISCO BOARD OF SUPERVISORS THE CITY'S GOVERNING BODY ON WHICH MR
HALLINAN'S BROTHER SERVES EVEN ASKED US ATTORNEY GENERAL JANET RENO TO
REVIEW MR HALLINAN'S ARREST AND ENSURE THERE WAS NO HINT OF VENGEANCE OR
PROSECUTORIAL ABUSE

EVEN IF THE LAWYERS ARE EVENTUALLY CONVICTED OTHERS IN THE DEFENSE BAR SAY
PROSECUTORS HAVE GONE TOO FAR BY TAKING THE UNUSUAL STEP OF SEEKING CONTROL
OF THE ATTORNEYS' LAW FIRMS IF THEY ARE CONVICTED TYPICALLY IN DRUG AND
RACKETEERING CASES THE GOVERNMENT SEEKS THE FORFEITURE OF PROPERTY USED TO
CARRY OUT A CRIME OR PROPERTY OBTAINED WITH ILLGOTTEN GAINS WHILE OTHER
BUSINESSES AND PARTNERSHIPS HAVE BEEN SEIZED THE HALLINAN AND GRELLMAN CASE
IS ONE OF THE FIRST IN WHICH THE GOVERNMENT HAS SOUGHT TO TAKE OVER A LAW
FIRM

IT'S A BIZARRE REQUEST SAID NEW YORK DEFENSE LAWYER GERALD LEFCOURT HE
SAID THAT AT THE CRIMINALDEFENSE BAR'S MEETING PEOPLE WERE SHOCKED THAT
THE ATTORNEYS WERE INDICTED AND SHOCKED THAT THE GOVERNMENT WOULD SEEK
FORFEITURE OF THE LAW FIRMS

OSCAR GOODMAN MR GRELLMAN'S ATTORNEY SAID THE GOVERNMENT'S THREAT OF
SEIZING THE LAW PRACTICE WAS HELD OVER HIS CLIENT'S HEAD IN SETTLEMENT
TALKS PROSECUTORS ALSO ARE SEEKING THE FORFEITURE OF THE MEN'S HOMES

MR GOODMAN OF LAS VEGAS LAW FIRM GOODMAN & CHESNOFF MAINTAINS THAT
THREATENING TO SEIZE THE LAW FIRMS SERVES NO PURPOSE BUT TO INTIMIDATE THE
ATTORNEYS UNLIKE MOST OTHER SEIZED BUSINESSES OR PROPERTY WHICH CAN BE
SOLD BY THE GOVERNMENT A LAW FIRM ISN'T WORTH TWO CENTS WITHOUT THE LAWYER
RUNNING IT HE SAID

MOREOVER IF THE ATTORNEYS ARE CONVICTED THEY WILL LOSE THEIR LICENSE TO
PRACTICE LAW SAID TERRANCE G REED AN ATTORNEY AT ASBILL JUNKIN & MYERS
IN WASHINGTON IT IS A POINTLESS GESTURE BECAUSE OF DISBARMENT SAID MR
REED

MR HALLINAN'S LAW FIRM HAS THREE PARTNERS AND ONE ASSOCIATE MR GRELLMAN
IS A SOLO PRACTITIONER

THE CASE IS AN ATTACK ON THE PEOPLE WHO HANDLE CRIMINAL DEFENSE SAID JOHN
W KEKER MR HALLINAN'S ATTORNEY AT KEKER & BROCKETT IN SAN FRANCISCO

L ANTHONY WHITE THE ASSISTANT US ATTORNEY IN CHARGE OF THE RENO FEDERAL
PROSECUTORS' OFFICE SAID THE LAWYERS WEREN'T SINGLED OUT FOR PARTICULARLY
HARSH TREATMENT BUT WERE DEALT WITH JUST AS ANY DEFENDANT IN A MAJOR DRUG
CASE WOULD BE NO ONE GETS TREATED DIFFERENTLY JUST BECAUSE THEIR NAME ENDS
IN ESQUIRE' HE SAID

MR WHITE ALSO DEFENDED THE HANDLING OF MR HALLINAN'S ARREST IN WHICH HIS
HOME WAS SURROUNDED BY DRUG AGENTS AND THE DEFENDANT WAS ORDERED TO
SPREADEAGLE ON THE FLOOR AT GUNPOINT BECAUSE MR HALLINAN WAS ARRESTED ON
A FRIDAY NIGHT WHEN NO MAGISTRATE WAS AVAILABLE TO HEAR HIS BAIL REQUEST HE
HAD TO STAY IN JAIL UNTIL THE FOLLOWING MONDAY WE WERE WORRIED ABOUT
EVIDENCE BEING COMPROMISED MR WHITE SAID

THE LAW FIRMS SHOULD BE FORFEITED IF THE TWO MEN ARE CONVICTED MR WHITE
SAID BECAUSE THEY WERE USED TO FACILITATE THIS PARTICULAR DRUGTRAFFICKING
CONSPIRACY

MR WHITE DECLINED TO SAY WHAT THE GOVERNMENT WOULD DO WITH THE LAW FIRMS IF
THEY WERE FORFEITED BUT HE SAID MR HALLINAN'S PARTNERS COULD TRY TO SHOW
THAT THEY WERE INNOCENT THIRD PARTIES WHOSE STAKES IN THE LAW FIRM SHOULDN'T
BE TAKEN

ALTHEIMER & GRAY AN APPROXIMATELY 200LAWYER CHICAGO LAW FIRM HAS OPENED
AN OFFICE IN KIEV UKRAINE THE OFFICE IS HEADED BY PARTNER JAROSLAWA
ZELINSKY JOHNSON WHO WILL DIVIDE HER TIME BETWEEN CHICAGO AND KIEV

MS JOHNSON WHO WAS A PARTNER AT HINSHAW & CULBERTSON IN CHICAGO UNTIL SHE
JOINED ALTHEIMER & GRAY EARLIER THIS YEAR WAS BORN IN UKRAINE AND SPEAKS
SEVERAL LANGUAGES INCLUDING RUSSIAN AND UKRAINIAN SHE SPECIALIZES IN
REPRESENTING WESTERN COMPANIES IN THEIR EASTERN EUROPEAN VENTURES

TWO OTHER LAWYERS ALSO WILL WORK IN ALTHEIMER & GRAY'S KIEV OFFICE ONE FROM
UKRAINE AND THE OTHER FROM THE US THE LAW FIRM ALSO HAS OFFICES IN PRAGUE
AND WARSAW 9308310014 930831 DIGITAL PRODUCTS CORP PRESIDENT LEAVES
POST AMID FEDERAL CHARGES

POMPANO BEACH FLA THEODORE M SABARESE RESIGNED AS PRESIDENT CHIEF
EXECUTIVE OFFICER AND DIRECTOR OF DIGITAL PRODUCTS CORP FOLLOWING HIS
INDICTMENT ON FEDERAL FRAUD CHARGES LAST WEEK

THE COMPANY WHICH MAKES ELECTRONIC ANKLE BRACELETS FOR CONVICTS SENTENCED
TO HOME CONFINEMENT SAID MR SABARESE RESIGNED TO DEVOTE HIS FULL TIME AND
EFFORTS TO HIS PERSONAL AFFAIRS WHICH ARE UNRELATED TO THE ACTIVITIES AND
OPERATION OF THE COMPANY

KEITH S BRAUN DIGITAL PRODUCTS OUTSIDE LEGAL COUNSEL HAS BEEN NAMED
INTERIM CHIEF OPERATING OFFICER WHILE THE COMPANY CONDUCTS A COMPREHENSIVE
REVIEW OF MANAGEMENT

RESPONDING TO THE ANNOUNCEMENTS DIGITAL PRODUCTS STOCK CLOSED AT 2 IN
NATIONAL OVERTHECOUNTER TRADING DOWN 50 CENTS REFLECTING A 20 DROP

THE US ATTORNEY'S OFFICE IN NEWARK NJ LAST WEEK INDICTED MR SABARESE
53 YEARS OLD AND TWO OTHER MEN ON CHARGES OF DEFRAUDING BANKS OF MORE THAN
5 MILLION MR SABARESE WAS INDICTED ON 29 FEDERAL CHARGES OF DEFRAUDING
BANKS IN FOUR STATES IF CONVICTED HE COULD FACE UP TO 145 YEARS IN A
FEDERAL PRISON AND 10 MILLION IN FINES

THE ALLEGED ACTIONS HAPPENED WHEN MR SABARESE WAS PRESIDENT AND CHAIRMAN OF
ULTIMATE CORP WHICH HAS BEEN CLEARED IN COURT OF ANY WRONGDOING

IN A STATEMENT YESTERDAY MR SABARESE SAID HE WAS INNOCENT AND WAS
CONFIDENT THE JUSTICE SYSTEM WILL WORK TO PROVE MY INNOCENCE 9308310013
930831 POLITICS & POLICY FALSE SENSE OF SECURITY AND COST CONCERNS KEEP 
MANY ON FLOOD PLAINS FROM BUYING INSURANCE  BY ALBERT R KARR 
STAFF REPORTER OF THE WALL STREET JOURNAL

QUINCY ILL BOB AND BETTY COLGROVE KNEW THE FARMHOUSE THEY OWNED IN
HULL 20 MILES SOUTH OF HERE WAS ON A FLOOD PLAIN AND THEY KNEW THAT THEY
WERE ELIGIBLE TO BUY FEDERAL FLOOD INSURANCE THEY JUST NEVER THOUGHT THEY'D
NEED IT

YOU LIVE ON THE WATER AND YOU THINK YOU'RE IN CONTROL AND IT'S NOT GOING
TO GET NEAR YOU THIS YEAR SAYS MRS COLGROVE AFTER ALL THE LAST TIME A
FLOOD HIT HULL WHICH IS 10 MILES FROM THE RIVER CHANNEL WAS 105 YEARS AGO
IN 1888 AND THE NEARBY 54MILELONG SNY LEVEE ONE OF THE LONGEST IN THE
US WAS CONSIDERED UNBREAKABLE

THIS YEAR THE COLGROVES WERE WRONG EVEN AS THE MISSISSIPPI RIVER KEPT
RISING LAST MONTH THEY STILL HESITATED TO BUY THE INSURANCE THINKING THAT
THE FLOOD WATERS WOULD HIT DURING A REQUIRED FIVEDAY WAITING PERIOD BEFORE
THE POLICY TOOK EFFECT IT TOOK LONGER FOR THE FLOOD TO COME TO HULL BUT BY
THE TIME THE COLGROVES FINALLY DECIDED TO APPLY IT WAS TOO LATE ON JULY
25 THE LEVEE BROKE AND THE FARMHOUSE WHERE THEIR SON WAS LIVING WAS A
TOTAL LOSS

THE COLGROVES' ITCAN'THAPPENHERE THINKING HELPS EXPLAIN WHY MOST PEOPLE
WHO LIVE IN AREAS THAT ARE VULNERABLE TO FLOODS DON'T BUY THE FEDERAL
INSURANCE OFFERED FOR THEIR PROTECTION EVEN NOW WITH FLOOD WATERS RISING
AGAIN IN PARTS OF THE MIDWEST AS A RESULT OF LAST WEEKEND'S TORRENTIAL
RAINS MANY HOMEOWNERS STILL LACK INSURANCE

IT'S NOT JUST THE HOMEOWNERS WHO ARE GETTING SOAKED TAXPAYERS WILL FOOT
PART OF THE BILL TOO BECAUSE THE FLOOD INSURANCE MANY OF THE VICTIMS
SPURNED WAS CREATED TO REDUCE THE FEDERAL DISASTERRELIEF TAB BY ONE
CONGRESSIONAL ESTIMATE THE 6 BILLION IN AID TO FLOOD VICTIMS APPROVED BY
CONGRESS COULD HAVE BEEN REDUCED BY 15 BILLION IF THOSE MIDWESTERNERS WHO
SHOULD HAVE BOUGHT FLOOD INSURANCE HAD DONE SO

UNTIL THIS YEAR'S FLOOD ACCORDING TO THE FEDERAL EMERGENCY MANAGEMENT
AGENCY WHICH OVERSEES GOVERNMENT DISASTER RELIEF ONLY ABOUT 18 MILLION OF
THE EIGHT MILLION TO 11 MILLION HOMES AND OTHER BUILDINGS IN HIGHHAZARD
COASTAL AND RIVER AREAS HAD FLOOD INSURANCE IN AREAS SUCH AS QUINCY AND
SURROUNDING ADAMS COUNTY AMONG THE PLACES MOST SERIOUSLY AFFECTED BY THE
RECENT FLOODS THE RATE OF PARTICIPATION IS EVEN LOWER BY FEMA'S COUNT
ONLY 141 PEOPLE IN ADAMS COUNTY OWNED FEDERAL FLOODINSURANCE POLICIES OR
ABOUT 5 OF THE 2847 HOUSEHOLDS CLASSIFIED AS LOCATED IN SPECIAL
FLOODHAZARD AREAS

TALKS WITH FLOOD VICTIMS AT THE FEDERAL DISASTER ASSISTANCE CENTER SET UP IN
THE BALDWIN INTERMEDIATE SCHOOL CAFETERIA IN QUINCY YIELD A NUMBER OF
REASONS WHY PARTICIPATION IS SO LOW MOSTLY IT COMES DOWN TO A QUESTION OF
COST THE AVERAGE FLOOD INSURANCE PREMIUM IS 320 A YEAR FOR AN AVERAGE
89000 POLICY COMBINED WITH A FALSE SENSE OF SECURITY

WILLIAM PARRISH 68 YEARS OLD HAD FLOOD INSURANCE ON HIS FARMHOUSE NEAR
HULL FOR A COUPLE OF YEARS BUT LET IT LAPSE WITH A PREMIUM OF NEARLY
400 A YEAR ON TOP OF HOMEOWNERS AUTO AND HEALTH INSURANCE THERE IS
SOMEPLACE YOU'VE GOTTA STOP HE SAYS LIKE THE WIFE SAID THE LEVEE HADN'T
BROKE FOR A HUNDRED YEARS

ED WILCOX A DRAINAGEDISTRICT WORKER LOST HIS HOME TO THE FLOOD AT MEYER
NORTH OF QUINCY I DIDN'T HAVE FLOOD INSURANCE BECAUSE I COULDN'T AFFORD
OVER 500 FOR FLOOD AND REGULAR INSURANCE TOO HE SAYS FLOOD INSURANCE
THE WAY I UNDERSTAND IT DOESN'T PAY ALL THAT MUCH ANYWAY MY NEIGHBOR SAID
IF YOU SAVE YOUR PREMIUMS YOU'RE BETTER OFF

ACTUALLY THE PROSPECT OF FLOOD DAMAGE IS FAR GREATER THAN MANY PEOPLE
THINK FEMA SAYS THAT OVER THE SPAN OF A TYPICAL 30YEAR MORTGAGE PEOPLE
LIVING IN FLOOD PLAINS STAND A 26 CHANCE OF FLOOD DAMAGE FULLY 26 TIMES
THE LIKELIHOOD OF A FIRE HARMING THEIR HOUSE

FEMA HAS BEEN OFFERING FLOOD INSURANCE SINCE 1968 AFTER BIG FLOOD LOSSES
PROMPTED PRIVATE INSURERS TO PULL OUT OF THE HIGHRISK MARKET POLICIES ARE
BOUGHT THROUGH AGENTS COMMISSIONED BY FEMA OR THROUGH PRIVATE INSURANCE
AGENCIES THE FLOODS WILL SURELY SPUR MORE PEOPLE TO BUY THE FEDERAL
INSURANCE PARTLY BECAUSE THEY MUST DO SO IF THEY COLLECT DISASTER AID
APPLICATIONS IN RECENT WEEKS HAVE SOARED NEARLY FOURFOLD FEMA OFFICIALS
SAY

STILL THAT MAY COME UNDER THE HEADING OF CLOSING THE BARN DOOR AFTER THE
LIVESTOCK HAVE ESCAPED BECAUSE UNINSURED FLOOD VICTIMS WILL WIND UP GETTING
FAR LESS IN DISASTER MONEY THAN THEY WOULD HAVE BEEN PAID IN INSURANCE
BENEFITS UNINSURED VICTIMS ARE ALLOWED A MAXIMUM OF 11900 IN FEDERAL
DISASTER AID OFTEN MUCH OF THAT GOES FOR TEMPORARY HOUSING AND OTHER
SHORTTERM HELP

CONGRESS IS CONSIDERING TIGHTENING THE LOOPHOLERIDDEN LAW REQUIRING THAT
FLOODPLAIN BORROWERS BUY THE INSURANCE AS A CONDITION FOR OBTAINING
FINANCING FEMA OFFICIALS FAULT BOTH LENDERS AND REAL ESTATE AGENTS FOR NOT
DOING AN ASSIDUOUS JOB OF SELLING THE POLICIES BUT REPRESENTATIVES OF THOSE
INDUSTRIES SAY THE REAL PROBLEM IS CONVINCING PEOPLE SUCH AS THE COLGROVES
THAT THEY NEED THE COVERAGE

SAYS TODD MULLER AN OFFICIAL OF THE INDEPENDENT INSURANCE AGENTS OF
AMERICA THERE'S A TREMENDOUS AMOUNT OF CONSUMER RESISTANCE 9308310012
930831 WHEN THE PHRASE GO FLY A KITE' TAKES ON A WHOLE NEW MEANING 
 BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL

REMEMBER WHEN FLYING A KITE WAS A PEACEFUL PLACID SPORT WELL FORGET ABOUT
IT

IN A SUDDEN SWELL OVER THE PAST TWO YEARS THRILLSEEKERS HAVE STARTED USING
KITES TO FLY THEMSELVES SWING BETWEEN TALL TREES JUMP HUGE DISTANCES LIKE
MOON ASTRONAUTS AND PROPEL THEMSELVES IN BUGGIES SLEDS SKIS AND SLEDS THAT
CAN ZIP ALONG AT BREATHTAKING SPEEDS

ONE KITE RIDER IN OREGON IS SLIDING BACK AND FORTH ON A LOGGING CABLE
HUNDREDS OF FEET IN THE AIR PROPELLED BY KITES AND OTHERS BUOYED BY KITES
ARE JUMPING 20 TO 30 FEET INTO THE AIR SAYS DAVID GOMBERG PRESIDENT OF
THE AMERICAN KITE FLYERS ASSOCIATION

THE NORMALLY TRANQUIL ASSOCIATION IS WORRIED IN 1991 WE BEGAN INSURING OUR
5000 MEMBERS FOR FROM 100000 TO 1 MILLION FOR POSSIBLE INJURY FRETS
MR GOMBERG A NEOTSU ORE KITE MAKER

BUT THE ASSOCIATION WON'T INSURE PEOPLE WHO FLY THEMSELVES WITH KITES
BECAUSE OF TWO FATALITIES IN EUROPE LAST YEAR AND A KITER IN WASHINGTON
STATE FELL SEVERAL HUNDRED FEET TO HIS DEATH WHEN HE GOT TANGLED IN THE
LINES OF A HUGE INFLATABLE KITE

DEAN JORDAN WHO WAS CLOBBERED WHEN HE CRASHED IN A FLIGHT WITH A DOZEN
DELTAWINGED KITES TWO YEARS AGO ON A WILDWOOD NJ BEACH HAS SWITCHED
FROM FLYING WITH KITES TO RIDING IN BUGGIES PULLED BY THEM IT'S A LOT
SAFER BUT IT'S STILL DANGEROUS SAYS MR JORDAN A GAINESVILLE FLA KITE
MAKER WHO ENDED UP IN THE HOSPITAL AFTER FALLING 30 FEET DURING HIS
ILLFATED RIDE

TO HELP BUGGY RIDERS GET THE HANG OF THE NEW ART KITERS PLAN A GATHERING
CALLED BUGGY BOOGIE THANG IN THE DESERT NEAR LAS VEGAS NEXT JANUARY TO
WATCH PETER LYNN A NEW ZEALAND KITEBUGGY RIDER SHOW HOW IT'S DONE FOR
EXAMPLE MR LYNN ADVISES KEEPING KITE STRINGS CLEAR OF OVERHEAD WIRES OR
THE BUGGY MAY COME TO A SUDDEN STOP POSSIBLY CAUSING SERIOUS INJURY TO THE
RIDER

MR JORDAN SAYS THAT SOME KITERS MAY ATTEND THE MEETING TO GET THE COVETED
BUSHPILOT PIN FOR BUGGYING IN THE NUDE FOR A MILE I'VE GOT ONE AND I
WOULDN'T GIVE IT UP FOR ANYTHING HE SAYS

SOME KITERS LONG FOR THE DAYS WHEN KITE FLYING WAS TAMER AND LESS DARING I
WISH SOME OF THESE FRINGE ACTIVITIES WOULD STOP SO PEOPLE COULD GO BACK TO
PLAIN VANILLA KITEFLYING SAYS MR GOMBERG 9308310011 930831 WHO'S
NEWS HEALTH CARE REIT INC

HEALTH CARE REIT INC TOLEDO OHIO JOHN P DAILEY 51 YEARS OLD
RESIGNED AS A DIRECTOR OF THIS REAL ESTATE INVESTMENT TRUST FOR PERSONAL
REASONS THE COMPANY SAID THE RESIGNATION TEMPORARILY REDUCES HEALTH CARE
REIT'S BOARD SIZE TO EIGHT MEMBERS FROM NINE THE COMPANY SAID IT DIDN'T YET
KNOW WHEN A SUCCESSOR TO MR DAILEY WILL BE NAMED 9308310010 930831 WHO'S
NEWS PRIMADONNA RESORTS INC

PRIMADONNA RESORTS INC LAS VEGAS GEORGE C SWARTZ AND ALAN S MAISS
WERE ELECTED DIRECTORS OF THIS OWNER AND OPERATOR OF CASINO HOTELS
INCREASING THE BOARD TO SEVEN MEMBERS MR SWARTZ 50 YEARS OLD A FORMER
MEMBER OF THE NEVADA GAMING COMMISSION CURRENTLY IS TREASURER AND TRUSTEE
FOR THE UNIVERSITY OF NEVADA LAS VEGAS FOUNDATION MR MAISS 51 NOW A
TRUSTEE EMERITUS FOR THE UNIVERSITY OF NEVADA RENO FOUNDATION WAS AN
EXECUTIVE WITH BALLY GAMING INTERNATIONAL INC 9308310009 930831 WHO'S
NEWS AMERICAN TELEPHONE & TELEGRAPH CO

AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK JOHN T DICKSON 47 YEARS
OLD WAS NAMED VICE PRESIDENT OF THE INTEGRATED CIRCUIT BUSINESS UNITS OF
THE COMPANY'S AT&T MICROELECTRONICS SUBSIDIARY A NEW POSITION AT&T
MICROELECTRONICS PRODUCES A WIDE RANGE OF SEMICONDUCTOR AND ELECTRONIC
COMPONENTS MR DICKSON HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
SHOGRAPHICS A SUNNYVALE CALIF MAKER OF HIGHPERFORMANCE 3D GRAPHICS
SYSTEMS 9308310008 930831 WHO'S NEWS BERRY PETROLEUM CO

BERRY PETROLEUM CO TAFT CALIF THE COMPANY SAID HARVEY L BRYANT
CHAIRMAN AND CHIEF EXECUTIVE OFFICER PLANS TO RETIRE AS A FULLTIME
EMPLOYEE IN MAY 1994 MR BRYANT 63 YEARS OLD WILL BE SUCCEEDED AS CHIEF
EXECUTIVE BY JERRY V HOFFMAN 44 CURRENTLY BERRY'S PRESIDENT AND CHIEF
OPERATING OFFICER MR BRYANT WILL CONTINUE AS A DIRECTOR AND AS CHAIRMAN
9308310007 930831 BUSINESS BRIEF CUC INTERNATIONAL INC FISCAL
SECONDQUARTER PROFIT ROSE 51 MEMBERSHIP GREW

CUC INTERNATIONAL INC SAID FISCAL SECONDQUARTER NET INCOME JUMPED 51 AS
THE COMPANY EXPANDED ITS MEMBERSHIP BASE

THE STAMFORD CONN CONSUMER MEMBERSHIP SERVICES COMPANY SAID NET INCOME
FOR THE QUARTER ENDED JULY 31 WAS 203 MILLION OR 18 CENTS A SHARE UP
FROM 135 MILLION OR 13 CENTS A SHARE

CUC SAID IT ADDED 750000 MEMBERS IN THE SECOND QUARTER COMPARED WITH
650000 A YEAR EARLIER REVENUE ROSE 19 TO 2158 MILLION FROM 1812
MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE
CUC'S SHARES CLOSED AT 3250 UP 225 OR 74

THE COMPANY'S MEMBERS NUMBERING MORE THAN 29 MILLION HAVE ACCESS TO A
VARIETY OF SERVICES THROUGH CUC INCLUDING HOME SHOPPING TRAVEL INSURANCE
AND HOME IMPROVEMENT 9308310006 930831 LEISURE & ARTS ON SPORTS 
YANKEES DAMNED NO MORE  BY FREDERICK C KLEIN

CLEVELAND SEPTEMBER IS ALMOST HERE AND THE NEW YORK YANKEES ARE IN A
BASEBALL PENNANT RACE AGAIN BUT IT ISN'T LIKE OLD TIMES SOMETHING IS
MISSING IT'S A FOURLETTER WORD THAT STARTS WITH AN H AND ENDS WITH AN
E THE MIDDLE TWO LETTERS ARE A AND T

THE ODDEST THING IS THAT EVEN WHEN IT'S SPELLED OUT FOR THEM SOME
PRESENTDAY FANS DON'T RECOGNIZE IT NO I DON'T HATE THE YANKEES WHY
SHOULD I ASKED ONE YOUNG WOMAN IN THE STANDS AT OLD CLEVELAND STADIUM
SUNDAY AFTERNOON BEFORE THE BRONX BOMBERS WERE TO PLAY THE HOMETOWN
INDIANS

I HATED EM BEFORE BUT THE WAY THEY'VE PLAYED THE LAST FEW YEARS WHY
BOTHER SAID A MAN WHO WAS OLD ENOUGH AT LEAST TO UNDERSTAND THE QUESTION

ALL BY MYSELF WITHOUT NBC I TOOK A POLL BEFORE THE YANKSINDIANS CONTEST
THE LAST OF A FOURGAME SERIES OF THE 17 PEOPLE I QUERIED 11 SAID THEY
DIDN'T HATE THE YANKEES AND SIX SAID THEY DID I DARESAY THAT 15 YEARS AGO
THE RESULTS WOULD HAVE BEEN NEARLY UNANIMOUS IN THE OPPOSITE DIRECTION

MOREOVER A FEW OF THE FOLKS WHO ANSWERED IN THE AFFIRMATIVE DID SO LESS
THAN WHOLEHEARTEDLY I HATE THE YANKEES BUT I HATE THE TORONTO BLUE JAYS
WORSE SAID ONE YOUNG MAN THE PITTSBURGH STEELERS TOO PRETTY WEAK
HUH

HISTORY HAS A BIG ROLE IN THE DECLINE OF BASEBALL'S ONCEDOMINANT PASSION
THE LAST WORLD SERIES WIN FOR THE FORMERLY ALMIGHTY YANKS CAME IN 1978 THE
LAST PENNANT IN 1981 THE PAST SIX YEARS NO YANK TEAM HAS FINISHED HIGHER
THAN FOURTH IN ITS DIVISION AND THEY'VE HAD LOSING RECORDS IN EACH OF THE
LAST FOUR

BUT EVEN THOUGH THE CURRENT YANKS ARE 7557 IN THE WONLOST COLUMN AND
NECKANDNECK IN THE AMERICAN LEAGUE EAST WITH THE DEFENDINGCHAMP BLUE JAYS
GOING INTO THE REGULARSEASON HOMESTRETCH THEY WERE TIED AFTER SUNDAY
THE NEW YORKERS ARE NOTED MORE FOR WHAT THEY AREN'T THAN FOR WHAT THEY ARE
THEIR LINEUP CONTAINS NO MICKEYS YOGIS WHITEYS OR REGGIES THEY DO NOT
SPRAY BLEACH ON REPORTERS OR TOSS FIRECRACKERS AT FANS IF THEIR FIELD
MANAGER BUCK SHOWALTER HAS A POSTGAME DRINK WITH A MARSHMALLOW SALESMAN
HE DOESN'T DISPUTE THE MAN'S OPINIONS VIGOROUSLY

YES GEORGE STEINBRENNER IS BACK AS GENERALISSIMO AFTER HIS TWOYEAR
LIFETIME SUSPENSION BUT HE'S BEEN RELATIVELY QUIET DEVOTING MORE ENERGY TO
BROWBEATING MUNICIPAL OFFICIALS ABOUT BUILDING HIM A NEW BALLPARK THAN TO
SECONDGUESSING HIS UNIFORMED MINIONS HE'S ALLOWED US TO DO OUR JOBS
SHOWALTER HAS SAID THAT'S SAYING A LOT

WHAT THE YANKEES HAVE IS A CAST OF PROVEN BIGLEAGUERS MANY OF WHOM WERE
OBTAINED IN TRADE OR AS FREE AGENTS AFTER MAKING MARKS ELSEWHERE THEY
INCLUDE THIRDBASEMAN WADE BOGGS EXBOSTON RED SOX SHORTSTOP MIKE GALLEGO
OAKLAND A'S OUTFIELDER PAUL O'NEILL CINCINNATI REDS CATCHER MIKE
STANLEY TEXAS RANGERS AND STARTING PITCHERS JIMMY KEY TORONTO AND JIM
ABBOTT CALIFORNIA ANGELS

THE HOMEGROWN CONTINGENT IS LED BY FIRST BASEMAN DON MATTINGLY SEEMINGLY
RECOVERED FROM LONGSTANDING BACK WOES THE MUSTACHED 32YEAROLD IS BATTING
301 404 WITH RUNNERS IN SCORING POSITION

THE YANKEES HIT WELL THEY LED THE LEAGUE IN TEAM BATTING AVERAGE 281 AND
TOTAL BASES GOING INTO SUNDAY AND UNTIL THE LAST THREE GAMES THEIR
PITCHING HAS BEEN SOLID ENOUGH TO OFFSET A LACK OF TEAM SPEED SO
THOROUGHGOING THAT SIX REGULAR PERFORMERS BOGGS MATTINGLY MATT NOKES
DION JAMES DANNY TARTABULL AND JIM LEYRITZ HAVE NOT ATTEMPTED A STOLEN
BASE THIS SEASON

THE LEAVENING HAS BEEN A TEAM PERSONALITY QUITE DIFFERENT FROM THE RAUCOUS
BRONX ZOO DAYS OF THE LATE 1970S WE'RE KIND OF BORING REALLY WE'VE GOT
A LOT OF GUYS WHO KEEP TO THEMSELVES SAYS GALLEGO AN INFIELD FIXTURE WITH
THE A'S PENNANT WINNERS OF 1988 89 AND 90 BUT HE ADDS OUR GUYS ARE
PROFESSIONALS BUSINESSMEN WE WANT TO WIN AND DON'T MIND SWEATING

MIKE HARGROVE THE INDIANS' MANAGER CONCURS THEY THE YANKS DON'T STRUT
MUCH JUST PLAY HARD THEY'VE GOT EIGHT OR 10 GUYS ANY TEAM WOULD LOVE TO
HAVE

AGAINST SIXTHPLACE CLEVELAND WHICH IS IN THE MIDST OF ANOTHER STARCROSSED
SEASON THE YANKS STARTED WELL AND ENDED THAT WAY BUT HAD SOME BUMPS
BETWEEN IN GAME ONE OF THE SERIES ON THURSDAY NIGHT STERLING HITCHCOCK A
ROOKIE LEFTHANDER UP FROM THE MINORS FOR A SPOT START SHUT OUT THE INDIANS
FOR EIGHT INNINGS IN A 40 YANKEE VICTORY MELIDO PEREZ EXTENDED THE GOOD
PITCHING FOR FIVE INNINGS THE NEXT NIGHT BUT IN THE SIXTH THE TRIBE GOT SIX
RUNS AND WENT ON TO WIN 92

KEY WHOSE 789 WINNING PERCENTAGE 154 WAS THE AL'S BEST STARTED FOR NEW
YORK ON SATURDAY AFTERNOON BUT THE HOME TEAM'S RUN DRUMBEAT CONTINUED HE
LASTED JUST 3 1/3 INNINGS HIS SHORTEST STINT IN 28 STARTS THIS SEASON
GIVING UP 10 HITS AND SIX RUNS IN WHAT WOULD BE AN 84 LOSS I COULDN'T GET
THE BALL WHERE I WANTED SOMETIMES IT HAPPENS HE SAID LATER

IT HAPPENED TO YANK STARTER JIM ABBOTT ON SUNDAY AND WHEN HE LEFT IN THE
FOURTH INNING HIS TEAM TRAILED 73 BUT HIS MATES' BATS TOOK OVER FROM
THERE THE VISITORS GOT A SIXTHINNING BREAK WHEN UMPIRE TERRY CRAFT CALLED
NOKES SAFE ON A TWOOUT NONEIN FORCE PLAY ATTEMPT AT THIRD BASE LOADING
THE BASES HE LOOKED OUT ON THE TV REPLAY AND THE YANKS SCORED SIX BEFORE
THAT INNING ENDED THREE ON O'NEILL'S BASESLOADED DOUBLE FOUR YANK
RELIEVERS DID BETTER THAN ABBOTT AND NEW YORK PREVAILED 148

THE WIN WASN'T CLASSIC BUT THE SOFTSPOKEN SHOWALTER YOUNG FOR A MANAGER
AT 37 SAID HE'D TAKE IT ASKED IF HE'D SAY HE WAS RELIEVED TO ESCAPE WITH A
SERIES ROAD SPLIT AGAINST THE HARDHITTING INDIANS HE REPLIED I WON'T SAY
THAT BUT I MIGHT BE FEELING IT

THE THING ABOUT THIS TEAM IS THAT THEY'VE BEEN ABLE TO PUT THINGS BEHIND
THEM THE GOOD AND THE BAD AND GO ON TO DO WHAT'S NEEDED THE MANAGER
CONCLUDED AS HE SPOKE WITH THE TORONTOSEATTLE GAME STILL ON THE JAYS
WOULD WIN TO MAINTAIN THE STANDINGS TIE THE YANKS HAD PUT BEHIND THEM ALL
SIX DIVISION RIVALS 9308310005 930831 INTERNATIONAL JAPANESE EXECUTIVE
 ARRESTED ON CHARGES OF COCAINE TRAFFICKING  A WALL STREET
JOURNAL ROUNDUP

TOKYO A JAPANESE MEDIA TYCOON HARUKI KADOKAWA WAS ARRESTED ON CHARGES
OF COCAINE TRAFFICKING AND HIS NAMESAKE COMPANY ONE OF JAPAN'S BIGGEST
PUBLISHING AND FILMMAKING CONGLOMERATES ESSENTIALLY TURNED ITS BACK ON
HIM HOPING TO CONTAIN THE DAMAGE TO ITS REPUTATION

MR KADOKAWA THE 51YEAROLD PRESIDENT OF KADOKAWA SHOTEN PUBLISHING CO
AND HEAD OF ABOUT 60 OTHER MEDIARELATED COMPANIES WAS ARRESTED EARLY
SUNDAY HE IS ALLEGED TO HAVE SENT AN AIDE TO THE US TO BUY 80 GRAMS OF
COCAINE VALUED AT ABOUT 53300 POLICE SOURCES SAID HE MAY ALSO HAVE USED
SOME COMPANY MONEY FOR THE ALLEGED DRUG PURCHASE

MR KADOKAWA HAS DENIED THE ALLEGATIONS

POLICE SAID THEY DETAINED THE AIDE PHOTOGRAPHER TAKESHI IKEDA AT TOKYO'S
NARITA AIRPORT JULY 3 POLICE SAID MR IKEDA TOLD INVESTIGATORS HE HAD GONE
TO LOS ANGELES TO OBTAIN THE COCAINE FOR MR KADOKAWA'S PERSONAL USE MR
IKEDA WHO SAID HE HAD MADE MANY SIMILAR TRIPS IN THE PAST WAS INDICTED ON
CHARGES OF VIOLATING THE NARCOTICS CONTROL LAW

KADOKAWA SHOTEN SAID ITS BOARD OF DIRECTORS WILL MEET SOON TO NOMINATE A NEW
PRESIDENT TO SUCCEED MR KADOKAWA IT ALSO PUBLICLY APOLOGIZED FOR THE
ALLEGED INCIDENT IN NEWSPAPERS AND SAID IT WOULD REFRAIN FROM ADVERTISING
FOR A TIME

ONE OF THE COMPANY'S BIG FEARS IS THAT IT WILL BE JUDGED MORALLY UNFIT TO
PUBLISH SCHOOL TEXTBOOKS

IN ADDITION THE SHOCHIKU FILM MARKETING OFFICE IMMEDIATELY SAID IT WOULD
PULL FROM THE NATION'S THEATERS A CHILDREN'S MOVIE THAT MR KADOKAWA
DIRECTED AND PRODUCED MR KADOKAWA A ONETIME AMATEUR ACTOR STEPPED INTO
HIS LATE FATHER'S SHOES IN 1975 AS HEAD OF A PUBLISHING HOUSE KNOWN FOR
INEXPENSIVE PAPERBACKS 9308310004 930831 MARKETING & MEDIA GE'S CNBC
CABLE UNIT NAMES AILES GOP MEDIA STRATEGIST AS ITS PRESIDENT  BY
MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK ROGER AILES THE CONSERVATIVE REPUBLICAN MEDIA STRATEGIST WHO
ADVISED THREE US PRESIDENTS AND NOW PRODUCES THE RUSH LIMBAUGH
TELEVISION SHOW WAS NAMED PRESIDENT OF THE CNBC CABLE NETWORK

MR AILES WHO WILL CONTINUE AS EXECUTIVE PRODUCER OF THE RUSH LIMBAUGH SHOW
AND AS CHAIRMAN OF HIS OWN MEDIA CONSULTING COMPANY ALSO TAKES THE HELM OF
AMERICA'S TALKING THE NEW CABLE CHANNEL THAT NBC EXPECTS TO LAUNCH BY FALL
1994

AT CNBC MR AILES SUCCEEDS AL BARBER A LONGTIME NBC VETERAN AND PRESIDENT
OF THE 24HOUR BUSINESS AND TALK CHANNEL SINCE JULY 1990 I HOPE ROGER WILL
GIVE US SOME OF THE SAME MAGIC HE'S GIVEN SOME OF HIS OTHER CLIENTS AS A
PRODUCER A MARKETING WHIZ AND HIS TALENTS AS A COMMUNICATOR SAID ROBERT
C WRIGHT PRESIDENT AND CHIEF EXECUTIVE OF NBC A UNIT OF GENERAL ELECTRIC
CO WE'RE GOING TO TAKE THIS CHANNEL AND RUN WITH IT CNBC IS A UNIT OF
NBC CABLE WHICH IN TURN IS A SUBSIDIARY OF NBC

BUT THE TASK BEFORE MR AILES MAY RIVAL THE CHALLENGE HE FACED AS AN ADVISER
TO THE FORMER INHABITANTS OF 1600 PENNSYLVANIA AVENUE WHILE IT HAS MADE
RECENT STRIDES IN THE RATINGS OVER THE PAST YEAR CNBC HAS LONG HAD AN
IDENTITY CRISIS WITH VIEWERS

WHILE THE SERVICE ONCE FANCIED ITSELF AS THE CONSUMER NEWS AND BUSINESS
CHANNEL LATELY IT HAS DRAWN MORE EYEBALLS AND RAISED MORE EYEBROWS AT
NIGHT WITH TALK SHOWS SUCH AS REAL PERSONAL THAT PROGRAM EXPLORES IN
CANDID DETAIL SUCH TOPICS AS SEXUAL BONDAGE IMPOTENCY AND INFIDELITY
COMPLETE WITH LIVE CALLIN PARTICIPATION

EVER SINCE WINNING THE BATTLE TO BUY THE NEARLY BANKRUPT FINANCIAL NEWS
NETWORK NEARLY TWO YEARS AGO CNBC HAS STRUGGLED WITH ITS IMAGE TEETERING
BETWEEN CONSUMER INFORMATION AT NIGHT AND SERIOUS FINANCIAL NEWS IN THE
DAYTIME TODAY MANY CABLE OPERATORS SAY THAT CNBC HAS SLOWLY BEGUN TO
DEFINE ITSELF AS A MONEY/TALK NETWORK

OTHER LIVE TALKSHOWS INCLUDING EQUAL TIME HOSTED BY MARY MATLIN AND
JANE WALLACE AND TOM SNYDER HAVE HELPED DOUBLE THE NETWORK'S PRIMETIME
RATINGS OVER THE PAST YEAR BUT THOSE SHOWS STILL CAPTURE ONLY 05 OF THE
485 MILLION HOUSEHOLDS ON A GOOD NIGHT

CNBC STILL HAS A RATINGS PROBLEM SAID ERICA GRUEN A SENIOR VICE
PRESIDENT AT THE SAATCHI & SAATCHI AD AGENCY IN THE VIEWERS' MINDS CNBC
DOESN'T MEAN ANYTHING SPECIAL WHILE CABLE SERVICES SUCH AS NICKELODEON OR
MTV DO SHE SAID

NOW JUST AS CNBC IS FARING BETTER MR AILES IS FACED WITH THE TASK OF
DEVELOPING A NEW NETWORK FROM THE VERY PROGRAMMING THAT HAS DRIVEN RATINGS
ON CNBCTALK TV

MR WRIGHT SAID THE NETWORK'S GOAL IS TO GRADUALLY MAKE CNBC INTO A PURE
FINANCIAL AND BUSINESS NEWS NETWORK BECAUSE THAT'S THE GUTS OF THE
CHANNEL AND TO AIR PRIMARILY TALK PROGRAMMING ON AMERICA'S TALKING 
WITHOUT ANY STARTLING PROGRAMMING CHANGES WE'VE GOT A LOT OF MOMENTUM IN
PRIMETIME AND WE DON'T WANT TO LOSE THAT HE SAID

BUT ANALYSTS QUESTION HOW MUCH TALK TV VIEWERS CAN TAKE IF YOU MAKE IT
ENTERTAINING INTERESTING AND RELEVANT THERE'S ALWAYS A MARKET OUT THERE
SAID MR AILES OF AMERICA'S TALKING I THINK I CAN COME UP WITH
PROGRAMMING TO MAKE PEOPLE STOP ON THIS CHANNEL

MEANWHILE MR AILES WHO RETIRED FROM ACITVE POLITICS IN 1991 ALSO WILL
CONTINUE TO BE A CONSULTANT FOR PARAMOUNT COMMUNICATIONS INC'S TV
PRODUCTION DIVISION ON SUCH SHOWS AS THE JOHN AND LEEZA SHOW ASKED IF THE
VARIOUS JOBS HE STILL HOLDS AND THE DUTIES BEFORE HIM WILL HAMPER HIS
EFFECTIVENESS MR AILES REPLIED I DON'T WHINE ABOUT WORKING 70 HOURS A
WEEK IT'S WHAT I LIKE TO DO I'M NOT NEWAGING MYSELF TO DEATH LOOKING AT
MY NAVEL 9308310003 930831 ECONOMY NATIONSBANK HANDED SETBACK ON
ANNUITIES  APPEALS COURT CURTAILS PLAN FOR SALES NATIONALLY 
RULING MAY HURT BANKS  BY KENNETH H BACON STAFF REPORTER OF THE
WALL STREET JOURNAL

WASHINGTON A FEDERAL APPEALS COURT SHARPLY CURTAILED PLANS BY NATIONSBANK
TO SELL ANNUITIES NATIONALLY A RULING THAT COULD SLOW THE EXPANSION OF
BANKS INTO A MAJOR NEW PRODUCT LINE

THE OPINION BY THE FIFTH CIRCUIT COURT OF APPEALS IN NEW ORLEANS IS ALMOST
CERTAIN TO BE APPEALED BY NATIONSBANK BASED IN CHARLOTTE NC BUT IF
UPHELD THE DECISION COULD AFFECT OTHER BANKS THAT ARE SCRAMBLING TO BROADEN
THE RANGE OF FINANCIAL PRODUCTS THEY OFFER TO INCLUDE ANNUITIES INSURANCE
AND MUTUAL FUNDS

ALTHOUGH THE DISTRIBUTION SYSTEMS OF PARTICULAR BANKS ARE LIKELY TO BE
AFFECTED DIFFERENTLY THE COURT'S FORECLOSING OF NATIONAL BANKS FROM
OFFERING SUCH INNOVATIVE FINANCIAL PRODUCTS IF SUSTAINED WILL GREATLY
UNDERMINE THE VALUE OF THE BANKING FRANCHISE SAID DAVID RODERER A BANKING
LAWYER IN THE WASHINGTON OFFICE OF WINSTON & STRAWN MANY INSTITUTIONS MAY
BE REQUIRED TO SHUT DOWN PROVEN PROFITABLE OPERATIONS AND THE LONGAWAITED
ERA OF CONVENIENT ONESTOP SHOPPING FOR CONSUMERS OF FINANCIAL SERVICES MAY
BE INDEFINITELY DELAYED

NATIONSBANK IS ONE OF THE LEADERS OF A BROAD EFFORT BY BANKS TO SUPPLEMENT
THEIR TRADITIONAL LINES OF BUSINESS BY EARNING FEES FROM SALES OF FINANCIAL
PRODUCTS THE APPEALS COURT DECISION COMES AS THE BANKING AND INSURANCE
INDUSTRIES ARE GEARING UP FOR A POTENTIAL LEGISLATIVE BATTLE OVER THE RIGHT
OF BANKS TO SELL INSURANCE THE ANNUITY ISSUE NOW COULD GET WRAPPED UP IN
THAT FIGHT BECAUSE THE APPEALS COURT RULED THAT ANNUITIES ARE INSURANCE
PRODUCTS

A 1916 LAW UPHELD BY THE SUPREME COURT EARLIER THIS YEAR SAYS THAT
NATIONAL BANKS CAN SELL INSURANCE ONLY IN SMALL TOWNS OF 5000 PEOPLE OR
LESS ANNUITIES GENERALLY SOLD BY INSURANCE AGENTS PAY A STEADY STREAM OF
BENEFITS IN RETURN FOR A LUMPSUM PAYMENT

IN 1989 NATIONSBANK ASKED THE COMPTROLLER OF THE CURRENCY WHO REGULATES
NATIONAL BANKS FOR PERMISSION TO SELL ANNUITIES AS AN AGENT FOR VARIOUS
LIFE INSURANCE COMPANIES IN 1990 THE COMPTROLLER SAID ANNUITIES ARE
INVESTMENT PRODUCTS AND ELIGIBLE FOR SALE THROUGH BANKS VARIABLE ANNUITY
LIFE INSURANCE CO CHALLENGED THE COMPTROLLER'S DECISION THE COMPANY WHICH
UNDERWRITES AND SELLS ANNUITIES ACROSS THE COUNTRY WANTED TO BAR
COMPETITION FROM BANKS

A FEDERAL DISTRICT COURT IN HOUSTON UPHELD THE COMPTROLLER'S DECISION
ALLOWING NATIONSBANK TO SELL ANNUITIES BUT THE APPEALS COURT DECIDED THAT
ANNUITIES ARE INSURANCE PRODUCTS AND THUS SUBJECT TO THE SOCALLED TOWN OF
5000 RULE UNDER THE RULING A NATIONAL BANK COULD SELL ANNUITIES BY MAIL
IN SMALL TOWNS BUT IT WOULDN'T BE ABLE TO OFFER THEM FROM BRANCHES IN
LARGER CITIES

ANNUITIES HAVE HISTORICALLY BEEN CONSIDERED INSURANCE PRODUCTS BECAUSE
FUNCTIONALLY THEY ARE THE MIRROR IMAGE OF LIFE INSURANCE THE APPEALS COURT
CONCLUDED IN RETURN FOR A LUMP SUM THE INSURANCE COMPANY TYPICALLY
PROMISES THE ANNUITANT PERIODIC PAYMENTS THAT WILL CONTINUE UNTIL THE DEATH
OF THE ANNUITANT THE LUMP SUM IS DETERMINED BY THE LIFE EXPECTANCY OF THE
ANNUITANT AND IN THIS CASE THE INSURANCE COMPANY GAMBLES THAT THE
ANNUITANT WILL DIE PRIOR TO THE ACTUARIAL PREDICTIONS THE COURT WROTE

THE COURT ALSO REJECTED THE COMPTROLLER'S ARGUMENT THAT NATIONAL BANKS
SHOULD BE ALLOWED TO SELL ANNUITIES UNDER A BANKINGLAW PROVISION THAT
GRANTS FEDERALLY CHARTERED BANKS ALL SUCH INCIDENTAL POWERS AS SHALL BE
NECESSARY TO CARRY ON THE BUSINESS OF BANKING EVEN IF THE POWER TO SELL
ANNUITIES IS INCIDENTAL TO BANKING BY NO STRETCH OF THE IMAGINATION CAN
THAT POWER BE DEEMED NECESSARY' TO OPERATING AS A BANK THE COURT SAID
9308310002 930831 TECHNOLOGY & HEALTH VALUE HEALTH INC UNIT WINS
DRUG CONTRACT FROM NEW YORK STATE

AVON CONN VALUE HEALTH INC SAID ITS VALUE RX UNIT WON A CONTRACT FROM
NEW YORK STATE TO MANAGE PRESCRIPTION DRUG BENEFITS FOR ABOUT 700000 STATE
AND LOCAL GOVERNMENT EMPLOYEES RETIREES AND DEPENDENTS

THE COMPANY VALUED THE ONEYEAR CONTRACT AT 30 MILLION IT IS EFFECTIVE
JAN 1 1994 WITH OPTIONS TO EXTEND IT ANNUALLY

THE CONTRACT CURRENTLY IS HELD BY MEDCO CONTAINMENT SERVICES INC THE
MONTVALE NJ MAILORDER DRUG CONCERN THAT RECENTLY AGREED TO MERGE WITH
MERCK & CO THE PROPOSED MERGER PROMPTED SPECULATION THAT MEDCO COULD HAVE
DIFFICULTY PERSUADING CLIENTS IT COULD MANAGE DRUG COSTS EFFECTIVELY IF IT
WERE OWNED BY A MAJOR DRUG COMPANY

CARL KANTER EXECUTIVE VICE PRESIDENT AND COGENERAL COUNSEL OF MEDCO SAID
THE COMPANY BELIEVES IT SUBMITTED THE MOST COSTEFFECTIVE BID AND THAT THE
STATE FAILED TO EVALUATE IT PROPERLY HE ADDED THAT THERE WAS NO INDICATION
THE PROPOSED MERGER AFFECTED THE DECISION HE SAID THE STATE CONTRACT
AMOUNTED TO LESS THAN 1 OF MEDCO'S REVENUE

A STATE SPOKESWOMAN SAID THE WINNING BID OFFERED BY VALUE RX AND CIGNA
CORP THE INSURER FOR THE PROGRAM WAS SELECTED FROM SIX BIDDERS AFTER
QUALITY AND COST EVALUATION BY A 17MEMBER TEAM

THE CONTRACT COVERS WHAT WAS EXPECTED TO BE 256 MILLION OF PRESCRIPTION
COSTS FOR 1994 THE VALUE RX PROPOSAL IS EXPECTED TO REDUCE THE AMOUNT TO
223 MILLION

STEVEN J SHULMAN SENIOR VICE PRESIDENT AT VALUE HEALTH SAID THE CONTRACT
MAKES NEW YORK STATE VALUE RX'S LARGEST CUSTOMER AND WILL INCREASE THE
NUMBER OF PRESCRIPTION CLAIMS MORE THAN 40 TO ABOUT 17 MILLION
9308310001 930831 ENVIRONMENT  BY DAVID STIPP

IN A VARIATION ON MAKING SILK PURSES FROM SOWS' EARS NEW ENGLAND FISHERMEN
ARE SNAGGING HAGFISH FOR LEATHER PURSES

IT'S PART OF A TREND MOTIVATED BY ECOLOGICAL NECESSITY TRADITIONALLY PRIZED
FISH HAVE BEEN DEPLETED BY YEARS OF OVERFISHING LEADING FISHERMEN TO SEEK
MARKETS FOR FORMERLY SHUNNED AND STILL ABUNDANT SPECIES LIKE HAGFISH

TO FURTHER THE TREND WHICH REDUCES PRESSURE ON DWINDLING SPECIES SUCH AS
FLOUNDER AND COD THE US NATIONAL MARINE FISHERIES SERVICE SPONSORS
RESEARCH ON NEW USES FOR UNDERUTILIZED FISH IN A STUDY IT FUNDED GULF OF
MAINE HAGFISH WERE CAUGHT FROZEN AND SHIPPED TO SOUTH KOREA IN FEBRUARY FOR
PROCESSING INTO EEL SKIN PRODUCTS SUCH AS WALLETS PURSES AND BRIEFCASES

EELLIKE HAGFISH ARE REVILED BY MOST US FISHERMAN THE NIGHTMARISH
CREATURES BURROW INTO NETTED FISH AND DEVOUR THEIR INNARDS BUT KOREAN
COMPANIES HAVE LONG PROCESSED THEM INTO LEATHER GOODS AND NOW CAN'T GET
ENOUGH OF THEM SAYS ALEXANDER GRYSKA OF THE NEW ENGLAND FISHERIES
DEVELOPMENT ASSOCIATION A TRADE GROUP HELPING TO IMPROVE THE HAG'S IMAGE
AT LEAST FOUR NEW ENGLAND FISHING BOATS RECENTLY SWITCHED TO THE FULLTIME
PURSUIT OF HAGFISH FOR KOREAN EXPORT HE ADDS

SMALL SHARKS CALLED DOGFISH ARE ANOTHER TRASH FISH GAINING FAVOR NOW
CAUGHT FOR EXPORT THEY SOON MAY BE A US SEAFOOD STAPLE THANKS TO
WIDENING USE OF PROCESSING TRICKS TO PREVENT THEM FROM SMELLING LIKE
AMMONIA THEIR MAIN DRAWBACK

THE FEDERAL FISHERIES SERVICE ALSO IS SPONSORING RESEARCH ON FLAVORING
ENHANCEMENTS FOR MACKEREL NOW USED MAINLY AS BAIT TO CATCH OTHER FISH
SAYS THE AGENCY'S KENNETH BEAL ONE GOAL MACKEREL NUGGETS AND SOME
HIGHTONE RESTAURANTS OFFER A GOURMET SEAFOOD CALLED RAIE WHICH IS THE NEW
MONIKER FOR SKATE ANOTHER FORMER TRASH SPECIES

DEMAND IS RISING SO FAST FOR SOME FORMER TRASH SPECIES THAT THEIR NUMBERS
ALSO MAY DWINDLE THE US FISHERIES SERVICE PLANS TO SPONSOR STUDIES ON HOW
GROWING DEMAND IS AFFECTING THEM

LIGHTING THAT IS SOLARASSISTED PROMISES A NEW NICHE FOR SUN POWER

THE TECHNOLOGY EMPLOYS ROOFMOUNTED SOLAR CELLS TO POWER LIGHTS LEFT ON ALL
DAY IN BUILDINGS SUCH AS STORES FACTORIES AND AIRPORTS THE CELLS SUPPLY
DIRECT CURRENT TO ENERGYEFFICIENT FLUORESCENT LIGHTS WHEN THE SUN ISN'T
OUT THE LIGHTS ARE POWERED BY CONVENTIONALLY SUPPLIED ELECTRICITY THROUGH A
TRANSFORMER THAT CONVERTS ALTERNATING TO DIRECT CURRENT SAYS WILLIAM BERG
WHO RESEARCHES THE IDEA AT THE UNIVERSITY OF MASSACHUSETTS AT LOWELL

AN EXPERIMENTAL 38LIGHT SYSTEM AT A BRADLEES DEPARTMENT STORE IN MEDFORD
MASS WILL GET AN ESTIMATED 25 OF ITS ELECTRICITY THIS YEAR FROM SOLAR
CELLS SAYS MR BERG WHO IS TESTING IT THE SUBSTITUTION OF SOLAR POWER FOR
ELECTRICITY FROM THE GRID HAPPENS AUTOMATICALLY WHEN THE SUN SHINES HE
ADDS

SUCH SYSTEMS COST MORE THAN CONVENTIONAL LIGHTING BUT THE PAYBACK PERIOD
CAN BE LESS THAN FIVE YEARS WHEN RENEWABLE ENERGY TAX BREAKS AND REBATES
FROM UTILITYSPONSORED CONSERVATION PROGRAMS ARE FACTORED IN MAINTAINS
ALDEN HATHAWAY A MANAGER AT SIEMENS'S OSRAM SYLVANIA UNIT WHICH SUPPLIED
PARTS AT THE STORE FUTURE SYSTEMS MAY EMPLOY BATTERIES TO STORE POWER FROM
THE GRID AT NIGHT WHEN DEMAND IS LOW AND ELECTRICITY IS CHEAP TO USE
DURING THE DAY ALONG WITH SOLAR POWER HE ADDS

FUNGUS THAT CAUSED THE 1840S IRISH POTATO BLIGHT APPEARS TO BE SPREADING IN
THE US PARTLY BECAUSE OF THE HEAVY RAINS IN THE MIDWEST

THE UNUSUALLY HEAVY MOISTURE IS AIDING GROWTH OF THE FUNGUS PHYTOPHTHORA
INFESTANS ESPECIALLY IN THE RED RIVER VALLEY OF NORTH DAKOTA AND
MINNESOTA SAYS WALTER STEVENSON A UNIVERSITY OF WISCONSIN RESEARCHER
BECAUSE OF FLOODING GROWERS CAN'T GET TO THEIR FIELDS TO DO CONTROL
MEASURES ADDS GARY SECOR A PLANT DISEASE EXPERT AT NORTH DAKOTA STATE
UNIVERSITY

WILLIAM FRY A CORNELL UNIVERSITY SCIENTIST SAYS VARIANTS OF THE FUNGUS
ENTRENCHED IN EUROPE AND MEXICO NOW ARE TURNING UP FROM NEW YORK TO
WASHINGTON FUNGICIDES USUALLY CONTROL THEM BUT SOME NEW VARIANTS ARE
RESISTANT TO THE MAIN DEFENSE A FUNGICIDE CALLED METALAXYL THE FUNGUS
WHICH HURTS TOMATOES TOO CAN DEVASTATE ORGANIC FARMS

PLANTDISEASE EXPERTS WORRY THAT GROWERS' REPEATED APPLICATIONS OF
FUNGICIDES TO FIGHT THE RECENT OUTBREAKS MAY ENGENDER VARIANTS THAT ARE EVEN
MORE PESTICIDERESISTANT MORE THAN HALF OF THE US POTATO CROP CONSISTS OF
A SINGLE TUBER TYPE MAKING GROWERS ESPECIALLY VULNERABLE TO THE TYPE'S
MAJOR DISEASES

THE FIRST MAJOR WIND POWER PROJECT IN THE EAST IS GETTING OFF THE GROUND IN
MAINE

NEW ENGLAND ELECTRIC SYSTEM A WESTBORO MASS UTILITY AGREED TO BUY 20
MEGAWATTS OF ELECTRICITY FROM A WIND FARM OF MULTIPLE TURBINES TO BE BUILT
BY US WINDPOWER INC IN THE REMOTE BOUNDARY MOUNTAINS NEAR THE CANADIAN
BORDER US WINDPOWER A UNIT OF KENETECH SAN FRANCISCO IS SEEKING OTHER
UTILITY PARTNERS FOR THE PROJECT IN HOPES OF EXPANDING IT TO 250 MEGAWATTS
ABOUT ONEFOURTH THE CAPACITY OF A LARGE NUCLEAR PLANT

THOUGH SMALL COMPARED WITH WIND FARMS IN CALIFORNIA WHERE US WINDPOWER'S
MAIN FARM GENERATES 420 MEGAWATTS THE NEW ENGLAND CONTRACT HAS BROKEN THE
CREDIBILITY BARRIER FOR WIND POWER IN THE EAST SAYS ARMOND COHEN OF THE
CONSERVATION LAW FOUNDATION A BOSTON ENVIRONMENTAL GROUP MAINE WINDS BLOW
HARDEST IN WINTER THUS WINDMILLS THERE SHOULD GENERATE THE MOST ELECTRICITY
WHEN DEMAND FOR THEIR POWER PEAKS DURING COLD MONTHS

MEANWHILE VERMONT'S GREEN MOUNTAIN POWER PLANS TO CHALLENGE THE CREDIBILITY
BARRIER BY BUILDING A SIX TO EIGHTMEGAWATT PROJECT IN SOUTHERN VERMONT BY
1995 9308300175 930830 JUDGE ACCEPTS UTILITY'S PLAN TO BUY EL PASO 
 CENTRAL & SOUTH WEST MOVES TOWARD VICTORY IN FIGHT FOR ELECTRIC
COMPANY  BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET
JOURNAL

A BANKRUPTCY JUDGE ACCEPTED CENTRAL & SOUTH WEST CORP'S PLAN TO BUY EL PASO
ELECTRIC CO MOVING THE DALLAS UTILITY CLOSER TO VICTORY IN ITS BITTER
FIGHT WITH SOUTHWESTERN PUBLIC SERVICE CO TO BUY EL PASO

IN A COURT HEARING IN AUSTIN TEXAS US BANKRUPTCY JUDGE FRANK MONROE
ACCEPTED THE FINANCIAL DISCLOSURE STATEMENTS BY CENTRAL & SOUTH WEST THAT
OUTLINE PLANS TO PAY CREDITORS AND EQUITY OWNERS

THE ACQUISITION PLAN TOTALS 22 BILLION IT INCLUDES THE ASSUMPTION OF
ABOUT 13 BILLION OF DEBT LEAVING THE REMAINDER FOR EQUITY HOLDERS

THE PLAN'S PRICE IS 100 MILLION HIGHER THAN THE PREVIOUS OFFER AS CENTRAL
& SOUTH WEST WAS FORCED TO RAISE THE ANTE TO WOO CREDITOR SUPPORT DURING THE
FOURMONTHLONG BATTLE SOUTHWESTERN'S OFFER ALSO TOTALED 22 BILLION BUT
THAT PLAN WOULD HAVE LEFT COMMON SHAREHOLDERS WITH NOTHING

UNDER CENTRAL & SOUTH WEST'S OFFER EL PASO COMMON SHAREHOLDERS WOULD
RECEIVE ABOUT 3 OF CENTRAL & SOUTH WEST STOCK FOR EVERY SHARE OF EL PASO
ELECTRIC AND CONDITIONALLY THEY WOULD RECEIVE AS MUCH AS 150 IN
ADDITIONAL STOCK OR CASH PER SHARE PREFERRED HOLDERS WOULD RECEIVE
THREEFOURTHS OF A SHARE OF NEW REORGANIZED PREFERRED EL PASO STOCK FOR
EACH EXISTING SHARE SECURED CREDITORS WOULD RECEIVE 100 OF THEIR CLAIMS
AND UNSECURED CREDITORS 955 CENTS ON THE DOLLAR

HOWEVER STATE AND FEDERAL REGULATORS HAVEN'T ENDORSED CENTRAL & SOUTH
WEST'S RATE PATH OR PROPOSED RATE INCREASES FOR EL PASO ELECTRIC WHILE EL
PASO ELECTRIC'S REORGANIZATION INTO A CENTRAL & SOUTH WEST SUBSIDIARY IS
SCHEDULED FOR CONFIRMATION BEFORE JUDGE MONROE DEC 6 THE PROPOSED DEAL
COULD STILL FALTER IF THE REQUISITE REGULATORY APPROVALS AREN'T FORTHCOMING
EL PASO FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN JANUARY 1992

WORD OF THE COURT'S DECISION BECAME PUBLIC LATE FRIDAY AFTER STOCK MARKET
TRADING HAD CLOSED CENTRAL & SOUTH WEST SHARES WERE UNCHANGED AT 32875 IN
COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WHILE EL PASO ELECTRIC
SHARES ROSE 125 CENTS TO 26875 IN NATIONAL OVERTHECOUNTER TRADING

SOUTHWESTERN PUBLIC SERVICE OF AMARILLO STILL HASN'T GIVEN UP ITS QUEST
FOR EL PASO SOUTHWESTERN PUBLIC SERVICE IS NOT WALKING AWAY SAID DOYLE
BUNCH THE UTILITY'S EXECUTIVE VICE PRESIDENT HE SAID HIS COMPANY HAS MANY
LEGAL OPTIONS BUT WOULDN'T DETAIL ANY

CREDITORS OF EL PASO ELECTRIC HAVE ENDORSED CENTRAL & SOUTH WEST'S PLAN

CENTRAL & SOUTH WEST SERVES ABOUT 16 MILLION CUSTOMERS IN TEXAS AND PARTS
OF OTHER SOUTHWESTERN STATES EL PASO ELECTRIC SERVES 255000 CUSTOMERS IN
THE EL PASO AREA

SOME EL PASO AREA RATEPAYERS SAY THEY ARE DISSATISFIED WITH BOTH BIDDERS
STOCKHOLDERS OF CENTRAL & SOUTH WEST SHOULDN'T WANT TO GET INTO THIS
SITUATION IN EL PASO CENTRAL & SOUTH WEST IS NOT WELCOME HERE WE WILL USE
VERY POSSIBLE MEANS TO ENSURE THAT THERE ARE NO RATE INCREASES SAID EL
PASO MAYOR LARRY FRANCIS

HE THREATENED TO KEEP THE BUYING UTILITY FROM RENEWING EL PASO ELECTRIC'S
FRANCHISE WITH THE CITY PURCHASING EL PASO ELECTRIC'S TRANSMISSION SYSTEM
UNDER EMINENT DOMAIN AND THREATENED TO ENCOURAGE LARGE CUSTOMERS TO BUY
POWER FROM OTHER SOURCES ERODING THE WINNING BIDDER'S CUSTOMER BASE THE
MAYOR SAID HE BELIEVED IT WAS SHAREHOLDERS AND CREDIT HOLDERS' TURN TO PAY
FOR EL PASO ELECTRIC'S MISTAKES NOT RATEPAYERS

THE PROPOSED CENTRAL & SOUTH WEST REORGANIZATION PLAN CALLS FOR RATE
INCREASES WHICH INCLUDES AN 8 INCREASE IN THE FIRST YEAR THAT MUST BE
PRESENTED IN PUBLIC HEARINGS BEFORE THE TEXAS REGULATORS BUT THE OFFICE OF
PUBLIC UTILITY COUNSEL WHICH OFFICIALLY REPRESENTS RESIDENTIAL AND SMALL
COMMERCIAL RATEPAYERS CANNOT SUPPORT THE PROPOSED RATE PATH BY CENTRAL &
SOUTH WEST SAID STEVE FOGEL ASSOCIATE COUNSEL FOR STATE AGENCY THEIR
OBJECTIONS MAY COMPLICATE THE HEARING PROCESS 9308300174 930830 CANADIAN
BANKRUPTCIES DROP

OTTAWA CANADIAN BANKRUPTCIES TOTALED 5025 IN JULY AN 18 DECLINE FROM
6090 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT
SAID

FOR JANUARY THROUGH JULY BANKRUPTCIES TOTALED 40020 A 13 DECLINE FROM
45865 A YEAR EARLIER 9308300173 930830 DIAL ENDS ACQUISITION TALKS

PHOENIX DIAL CORP SAID IT HAS TERMINATED DISCUSSIONS TO ACQUIRE DENMAT
CORP A SANTA MARIA CALIF MAKER OF REMBRANDT TOOTHPASTE

DIAL A CONSUMER PRODUCTS CONCERN DECLINED TO SAY WHY THE TALKS HAD CEASED
DENMAT HAS ANNUAL SALES OF ABOUT 75 MILLION 9308300172 930830 WHO'S
NEWS SNAPON TOOLS CORP

SNAPON TOOLS CORP KENOSHA WIS ROXANNE J DECYK 40 YEARS OLD VICE
PRESIDENT MARKETING AND SALES FOR AMOCO CHEMICAL CO'S POLYMERS BUSINESS
WAS ELECTED TO THE BOARD OF THIS TOOL AND DIAGNOSTIC EQUIPMENT CONCERN
EXPANDING THE BOARD'S SIZE TO NINE MEMBERS 9308300171 930830 CLOSED END
FUNDS

UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE
COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK
EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH
THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS
DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND
AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE
CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER
AAMERICAN MMIDWEST

GENERAL EQUITY FUNDS WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY
SUBSCRIBED FNET DILUTION FROM RIGHTS OFFERING VCONVERTED AT COMMERCIAL
RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT
AVAILABLE OR NOT APPLICABLE 9308300170 930830 WHO'S NEWS OWENSCORNING
FIBERGLAS CORP

OWENSCORNING FIBERGLAS CORP TOLEDO OHIO DJ DEREK HOLDEN 55
FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS FIBER GLASS MAKER'S
CANADIAN UNIT WAS NAMED VICE PRESIDENT OF GOVERNMENT/INDUSTRY RELATIONS AND
BUSINESS DEVELOPMENT IN WASHINGTON JOHN VERMUELEN 49 WILL NOW OVERSEE THE
CANADIAN OPERATIONS AND WILL CONTINUE AS VICE PRESIDENT HOME BUILDING
MARKETING SALES 9308300169 930830 WHO'S NEWS DUN & BRADSTREET CORP

DUN & BRADSTREET CORP NEW YORK VENETIA KONTOGOURIS WAS NAMED SENIOR
VICE PRESIDENT VENTURE DEVELOPMENT A NEW POSITION AT THIS INFORMATION
SERVICES CONCERN'S D&B ENTERPRISES UNIT MS KONTOGOURIS 41 YEARS OLD HAD
BEEN VICE PRESIDENT VENTURE DEVELOPMENT AT THE UNIT SINCE 1989 D&B
ENTERPRISES INVESTS IN ENTREPRENEURIAL BUSINESS IN THE INFORMATION SERVICES
AND TECHNOLOGY INDUSTRIES 9308300168 930830 WHO'S NEWS DIGITAL
EQUIPMENT CORP

DIGITAL EQUIPMENT CORP MAYNARD MASS DELBERT C STALEY HAS BEEN NAMED
A DIRECTOR OF THIS COMPUTER MAKER EFFECTIVE SEPT 16 MR STALEY 68 YEARS
OLD WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NYNEX CORP FROM 1983 UNTIL
1989 WHEN HE RESIGNED FROM THE EXECUTIVE POST AND CONTINUED AS CHAIRMAN
UNTIL 1991 HIS ELECTION TO DIGITAL'S BOARD INCREASES THE NUMBER OF
DIRECTORS TO 11 9308300167 930830 DIVIDEND NEWS UNITED COS FINANCIAL
CORP

UNITED COS FINANCIAL CORP BATON ROUGE LA SAID IT INCREASED ITS REGULAR
QUARTERLY DIVIDEND TO 19 CENTS A COMMON SHARE FROM 15 CENTS PAYABLE OCT 1
TO STOCK OF RECORD SEPT 10 THE FINANCIAL SERVICES COMPANY SAID THE
INCREASE REFLECTED THE RECENT IMPROVEMENT IN THE STOCK PRICE AND EARNINGS
AND ALSO SIGNALED CONFIDENCE IN FUTURE PERFORMANCE 9308300166 930830
TECHNOLOGY & ENVIRONMENT MORE MEDICAL LABS CONFIRM SUBPOENAS IN FRAUD
INQUIRY  A WALL STREET JOURNAL NEWS ROUNDUP

MORE MEDICALTESTING COMPANIES ACKNOWLEDGED RECEIVING SUBPOENAS FROM FEDERAL
OFFICIALS INVESTIGATING POSSIBLE IMPROPRIETIES WITHIN THE INDUSTRY IN
SUBMITTING CLAIMS FOR FEDERAL REIMBURSEMENT

CORNING INC CORNING NY AND LONDONBASED SMITHKLINE BEECHAM PLC SAID IN
RESPONSE TO QUESTIONS OVER THE WEEKEND THAT THEIR LABORATORY SERVICES UNITS
RECEIVED SUBPOENAS FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
ADDITIONALLY UNILAB CORP OF TARZANA CALIF SAID IT EXPECTS TO RECEIVE A
SUBPOENA AS PART OF A FEDERAL PROBE OF ALLEGEDLY FALSE OR IMPROPER CLAIMS
UNDER THE MEDICARE AND MEDICAID PROGRAMS THAT NEWS SENT UNILAB'S SHARES
TUMBLING 125 TO CLOSE AT 6 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY

A CORNING SPOKESWOMAN SAID THAT WE ARE COOPERATING FULLY SHE ADDED WE
BELIEVE THIS IS PART OF AN INDUSTRYWIDE INVESTIGATION

THE SPOKESWOMAN SAID METPATH A UNIT OF CORNING SUBSIDIARY CORNING
LABORATORY SERVICES INC RECEIVED A SUBPOENA AUG 24 SHE SAID DAMON CORP
A NEW CORNING ACQUISITION THAT IS BEING INTEGRATED INTO METPATH RECEIVED A
SUBPOENA AUG 26 ALL DOCUMENTS ARE BEING SENT IN THE CORNING SPOKESWOMAN
SAID

IN ACQUIRING DAMON CORNING ALSO ACQUIRED A DAMON UNIT MEDCHEK
LABORATORIES INC BASED IN PITTSBURGH WHICH EARLIER THIS MONTH AGREED TO A
24 MILLION GOVERNMENT SETTLEMENT IN A CASE INVOLVING CHARGES OF MEDICARE
FRAUD FROM 1987 TO 1989 CORNING HAS SAID MEDCHEK'S ORIGINAL OWNERS WILL
PAY THE FINE

A SPOKESMAN FOR SMITHKLINE BEECHAM WHOSE US OFFICES ARE BASED IN
PHILADELPHIA SAID INFORMATION WAS SUBPOENAED FROM THE COMPANY'S CLINICAL
LABORATORIES UNIT

UNILAB SAID IT WILL COOPERATE FULLY IN THE FEDERAL INVESTIGATION UNILAB
PREVIOUSLY DISCLOSED THAT IT HAS BEEN COOPERATING FOR ABOUT TWO YEARS WITH
THE CIVIL DIVISION OF THE DEPARTMENT OF JUSTICE IN AN EXAMINATION OF CERTAIN
BILLING PRACTICES UNILAB SAID THE BILLING PRACTICES UNDER SCRUTINY IN THAT
EXAMINATION APPEAR TO BE VERY SIMILAR IN NATURE TO THE PRACTICES COVERED BY
THE HHS SUBPOENA

TWO OTHER MEDICAL LAB COMPANIES NICHOLS INSTITUTE AND ALLIED CLINICAL
LABORATORIES INC SAID LATE LAST WEEK THEY WERE NOTIFIED THAT THEY SHOULD
EXPECT SIMILAR SUBPOENAS THE COMPANIES HAVE SAID HHS IS REQUESTING
DOCUMENTS THAT RELATE TO THEIR SELLING PRICING AND BILLING PRACTICES
9308300165 930830 TECHNOLOGY SONY ELECTRONICS DATA CARTRIDGE

MONTVALE NJ SONY CORP'S SONY ELECTRONICS INC UNIT SAID ITS NEW
QICEST QUARTERINCH DATA CARTRIDGE IS NOW AVAILABLE AT A SUGGESTED RETAIL
PRICE OF 6980

THE JAPANESE COMPANY SAID THE CARTRIDGE IMPROVES THE DATA STORAGE CAPACITY
OF A STANDARD MINICARTRIDGE WHILE INCREASING RELIABILITY 9308300164
930830 REVIEW & OUTLOOK EDITORIAL ASIDES THEY'RE LEARNING

MEANWHILE A LAWYERLY VIRUS APPEARS TO HAVE INFECTED RUSSIA ON FRIDAY
RUSSIA'S FIRST DEPUTY PRIME MINISTER VLADIMIR SHUMEIKO SUED VICE PRESIDENT
ALEXANDER RUTSKOI FOR LIBEL CITING MORAL DAMAGE MR RUTSKOI HAS ALLEGED
THAT MR SHUMEIKO IS CORRUPT MR SHUMEIKO IS SEEKING 500000 WHICH IS
INTERESTING IF FOR NO OTHER REASON THAN THAT IT SUGGESTS MR RUTSKOI MAY
HAVE DEEP POCKETS 9308300163 930830 WHO'S NEWS PFIZER INC

PFIZER INC NEW YORK FRANKLIN D RAINES VICE CHAIRMAN OF FEDERAL
NATIONAL MORTGAGE ASSOCIATION WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICAL
AND HEALTHCARE COMPANY 9308300162 930830 DANA TO ACQUIRE UK VENTURE

TOLEDO OHIO DANA CORP A MAKER OF ENGINE PARTS AND DRIVETRAIN
COMPONENTS SAID IT AGREED TO ACQUIRE THE REMAINING 50 STAKE IN A UK
JOINT VENTURE FOR 6 MILLION DANA WILL ACQUIRE THE STAKE FROM TI GROUP PLC
A BRITISH VENTURE OF TI/INTERLOCK LTD AND WICHITA CO

WICHITA MAKES PNEUMATIC CLUTCHES AND BRAKES COUPLINGS AND CONTROLS FOR THE
INDUSTRIAL MARKET TI/INTERLOCK SERVED AS THE MARKETING ARM FOR WICHITA'S
PRODUCTS A DANA SPOKESMAN SAID 9308300161 930830 WHO'S NEWS VLSI
TECHNOLOGY INC

VLSI TECHNOLOGY INC SAN JOSE CALIF JAMES FIEBIGER RESIGNED AS
PRESIDENT AND A DIRECTOR OF THIS MAKER OF CUSTOMIZED MICROCHIP SETS TO
PURSUE OTHER INTERESTS MR FIEBIGER 51 YEARS OLD WHOSE RESIGNATION WAS
EFFECTIVE FRIDAY IS SUCCEEDED IN HIS PRESIDENTIAL DUTIES BY ALFRED J
STEIN 58 CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY SAID THERE WERE
NO IMMEDIATE PLANS TO FILL THE VACANCY ON THE BOARD WHICH IS LEFT WITH FIVE
DIRECTORS 9308300160 930830 MARKETING  BY JYOTI THOTTAM

IN ITS CONTINUING EFFORTS TO RUN ITSELF MORE LIKE A BUSINESS THAN A
BUREAUCRACY THE US POSTAL SERVICE PLANS TO MAKE ITS STORE OF THE FUTURE
CONCEPT STANDARD FOR ALL POST OFFICES

THE DESIGN MEANT TO RESEMBLE A CONVENIENCE STORE HAS BEEN TESTED IN 23
LOCATIONS AROUND THE COUNTRY SINCE 1989 THIS YEAR WE DECIDED THAT THE
PROJECT WAS A GO SAYS NANCY WOOD POSTAL SERVICE PROJECT MANAGER

THE STORES' DESIGN PART OF AN EFFORT TO REGAIN BUSINESS LOST TO OTHER
CARRIERS STRESSES CONVENIENCE A SELFSERVICE STATION ALLOWS CUSTOMERS TO
WEIGH A PACKAGE BUY POSTAGE AND GET A RECEIPT STAMPS ARE DISPLAYED ON
RACKS FOR PURCHASE AT THEIR OWN CASH REGISTER ELIMINATING THE NEED TO WAIT
AT THE FULLSERVICE COUNTER FOR A HANDFUL OF STAMPS FULLSERVICE COUNTERS
WHICH DON'T SELL STAMPS HAVE MENU BOARDS DESCRIBING THE SERVICES AVAILABLE

EVERY NEW POST OFFICE AND RENOVATION FROM NOW ON WILL BE BASED ON THE
CONCEPT AN ADDITIONAL 25 STORES WILL OPEN IN THE NEXT FEW MONTHS AND ABOUT
10000 OF THE POSTAL SERVICE'S 35000 POST OFFICES WILL BE AT LEAST
PARTIALLY REDONE ALONG STORE OF THE FUTURE LINES BY THE TURN OF THE CENTURY
MS WOOD SAYS THE CHANGES WON'T MEAN SUBSTANTIAL ADDED EXPENSE SHE ADDS
BECAUSE THEY WILL BE INTRODUCED FIRST IN POST OFFICES THAT NEED REMODELING
ANYWAY AND THEY DON'T INVOLVE MORE EXPENSIVE EQUIPMENT

CUSTOMERS AT A POSTAL STORE IN WHITE PLAINS NY ON A RECENT AFTERNOON
WERE ENTHUSIASTIC SYMRA BRANDON WHO WORKS IN WHITE PLAINS SAID USING THE
POSTAL STORE WAS ALMOST LIKE GOING TO MCDONALD'S BECAUSE OF ITS
CONVENIENCE PAUL BURNS CALLED THE NEW LOOK UPSCALE BRIGHT CORAL TRIM
AND DISPLAY SIGNS WITH BOLD GRAPHICS ACCENT THE WALLS

THE CONCEPT EXTENDS BEHIND THE COUNTER TO INCLUDE SPECIAL CUSTOMERSERVICE
TRAINING FOR POSTOFFICE EMPLOYEES INTERNALLY IT'S RADICAL SAYS RITA
CODY SUPERVISOR OF THE WHITE PLAINS STORE BECAUSE AN EMPLOYEE'S MAIN
RESPONSIBILITY IS NOW SERVING CUSTOMERS RATHER THAN JUST KEEPING HIS OR HER
TILL IN ORDER

GO AHEAD KIDS PLAY WITH YOUR FOOD

THAT'S THE MESSAGE OF CARNATION KIDS A NEW LINE OF KIDFRIENDLY MEALS AND
SNACKS ROLLED OUT BY CARNATION FOODS A UNIT OF NESTLE CARNATION'S FIRST
VENTURE INTO PRODUCTS EXPRESSLY FOR THE GRADESCHOOL SET ENCOURAGES KIDS TO
PREPARE MUCH OF THE FOOD ON THEIR OWN

THE COMPANY FIGURES THE IF THEY MAKE IT THEY MIGHT EAT MORE OF IT THEME
WILL BE A SELLING POINT WITH PARENTS PLUS THE IT'S FOR ME DYNAMIC' MAKES
THE PRODUCTS DESIRABLE FOR KIDS SAYS PAUL KURNIT PRESIDENT OF GRIFFIN
BACAL THE AD AGENCY FOR THE NEW LINE

CARNATION KIDS MARKS THE FIRST PRODUCTS UNDER A BROAD LICENSING AND
PROMOTION PACT REACHED BY NESTLE AND WALT DISNEY IN LATE 1992

THE SNAZZY PACKAGING FEATURES CLASSIC DISNEY HEROES SUCH AS MICKEY MOUSE
ALONG WITH REGULARS OF DISNEY'S NEWER CARTOONS SUCH AS SCROOGE MCDUCK THE
FOOD ITSELF RESEMBLES A DISNEY HALL OF FAME MICROWAVABLE CUPCAKES SHAPED
LIKE MICKEY'S HEAD AND SUGARGLAZED TOASTER PASTRIES WITH GOOFY DRAWN ON
THEM THE LINE ALSO INCLUDES MICROWAVABLE BROWNIES PASTA AND MACARONI AND
CHEESE AND SQUEEZABLE PEANUT BUTTER AND CONDIMENTS

KIDS' GROWING ECONOMIC MUSCLE SPARKED THE IDEA FOR THE NEW LINE SAYS GLENN
PATCHA CATEGORY DIRECTOR OF NEW BUSINESS IN NESTLE'S CULINARY FOODS
DIVISION CHILDREN BUY 68 BILLION IN SNACK FOODS AND BEVERAGES EVERY YEAR
MR PATCHA QUOTES INDUSTRY FIGURES AND INFLUENCE 82 BILLION ANNUALLY IN
FOOD PURCHASES

COMMERCIALS AIMED AT PARENTS RUN DURING DAYTIME AND PRIME TIME AND PRINT
ADS WILL APPEAR IN WOMEN'S MAGAZINES ADS FOR THE MYSTERONI AND CHEESE
PASTA FOODS FEATURE A GROUP OF KIDS IN CARTOON ADVENTURES WHO RESCUE THE
FOOD THAT'S BEEN STOLEN OR THE FOOD SAVES THE DAY MR KURNIT SAYS THE ADS
END WITH THE MOTTO KIDS EAT IT UP

LAUNCHED LAST WEEK IN SEVERAL MAJOR MIDWESTERN AND SOUTHERN CITIES
INCLUDING DALLAS KANSAS CITY AND DENVER THE LINE IS EXPECTED TO BE
MARKETED NATIONALLY IN 18 MONTHS

LOCK MAKERS FACING FIERCE COMPETITION AND STAGNANT TECHNOLOGY ARE TRYING
TO ATTRACT MORE DOITYOURSELFERS

LOCK MAKERS ONCE PITCHED QUALITY AND CRAFTSMANSHIP TO APPEAL TO
ARCHITECTURAL AND CONSTRUCTION FIRMS BUT WITH THE DECLINE OF THE NEWHOME
MARKET AND THE RISE OF HOMECENTER RETAILERS THEY ARE SHIFTING THEIR FOCUS
TO AMATEUR HOME REMODELERS

INGERSOLLRAND'S SCHLAGE LOCK SUBSIDIARY A LEADER IN COMMERCIAL LOCKS
BILLS ITSELF IN A NEW TELEVISION CAMPAIGN AS THE DOBERMAN OF LOCKS HOPING
TO APPEAL TO HOMEOWNERS WORRIED ABOUT SAFETY

SPORTS PROGRAMMING IS BECOMING A SIGNIFICANT PART OF MANY LOCK COMPANIES'
ADVERTISING STRATEGIES AS THEY TRY TO REACH DOITYOURSELFERS MOST OF THE
PEOPLE IN THAT CATEGORY TEND TO WATCH SOME SPORTS SAYS TOM FIELD
SCHLAGE'S PRESIDENT AMERICAN BRANDS' MASTER LOCK SUBSIDIARY EVEN BOUGHT A
30SECOND SPOT DURING THIS YEAR'S SUPER BOWL

DENNIS HEINER BLACK & DECKER'S PRESIDENT OF SECURITY HARDWARE SAYS EASE OF
INSTALLATION HAS BECOME MORE IMPORTANT AS HOME REMODELING INCREASES AND
NEWHOME SALES DECLINE BLACK & DECKER'S KWIKSET LOCKS ARE DESIGNED SO THE
CONSUMER CAN JUST SLAP IT IN HE SAYS

THE GROWTH OF HOME CENTERS HAS FORCED LOCK MAKERS TO CHANGE THE WAY THEY
COMPETE ON THE SHELVES LOCKS ONCE PACKAGED IN PLAIN PAPER WRAPPERS NOW ARE
OFTEN PACKAGED IN CLEAR PLASTIC CASES TO LET CONSUMERS SEE THE PRODUCT MORE
CLEARLY

MILLER BREWING MILWAUKEE IS SPONSORING A SHARP'S SHOOTERS PHOTO CONTEST
FOR PHOTOGRAPHERS OF PROFESSIONAL GOLF TO PROMOTE ITS SHARP'S NONALCOHOLIC
BREW  MAMA 'N MIA INC A SPECIALTY CHOCOLATE COMPANY IN ISSAQUAH
WASH LAUNCHES A LINE OF NINE CHOCOLATE PIZZAS DECORATED TO LOOK LIKE THE
REAL THING 9308300159 930830 GPA EXPECTED TO CLOSE RESCUE PACTS THIS
WEEK  GE CAPITAL TO BUY AIRCRAFT VALUED AT 135 BILLION OPTION
FOR 80 OF FIRM  BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET
JOURNAL

GPA GROUP PLC IS EXPECTED TO SIGN FINANCIALRESCUE AGREEMENTS WITH GE
CAPITAL CORP AND ITS BANK SYNDICATE THIS WEEK 14 MONTHS AFTER A FAILED
STOCK OFFERING PLUNGED THE GIANT IRISH AIRCRAFTLEASING COMPANY INTO CRISIS

THE FINANCIAL ARM OF GENERAL ELECTRIC CO HAS AGREED TO PURCHASE 135
BILLION OF AIRCRAFT AND IS PAYING ABOUT 200 MILLION FOR AN OPTION TO BUY AS
MUCH AS 80 OF GPA IN ADDITION GE CAPITAL IS CREATING A UNIT TO MANAGE THE
AIRCRAFT LEASING BUSINESS OF GPA AND ITS OWN FLEET BUT HAS MADE CLEAR IT
ISN'T ASSUMING GPA'S BIG DEBT LOAD

TONY RYAN THE CHAIRMAN OF GPA IS STEPPING DOWN AND IS EXPECTED TO BE NAMED
HEAD OF THE NEW GE SUBSIDIARY PEOPLE FAMILIAR WITH THE COMPANY SAID
SPOKESMEN FOR GPA AND GE CAPITAL DECLINED TO COMMENT

THE BANK SYNDICATE IS EXPECTED TO AGREE TO DEFER 1 BILLION IN PRINCIPAL
PAYMENTS AND TO LOOSEN FINANCIAL COVENANTS IN RECENT MONTHS GPA SWEETENED
TERMS OF THE DEALS FOR BOTH THE BANKS AND GE CAPITAL

WITH THE TWO ACCORDS EXPECTED AS EARLY AS TOMORROW THE FINAL STEP OF THE
RESCUE PACKAGE FOR THE WORLD'S LARGEST AIRCRAFTLEASING COMPANY WILL BE A
VOTE BY SHAREHOLDERS SOMETIME IN SEPTEMBER AT LEAST 75 MUST APPROVE THE
TRANSACTION IN ADDITION SHAREHOLDERS ARE EXPECTED TO COMMIT ABOUT 130
MILLION IN FRESH EQUITY SOMEWHAT LESS THAN INITIALLY EXPECTED OFFICIALS
CLOSE TO THE NEGOTIATIONS SAID

LAST YEAR GPA TRIED UNSUCCESSFULLY TO TAP THE FINANCIAL MARKETS IT WAS
STUCK WITH BILLIONS OF DOLLARS IN DEBT COMING DUE AND 12 BILLION IN
AIRCRAFT ORDERS ON ITS BOOKS AMID A RECESSION IN THE AIRLINE INDUSTRY AND
AN INABILITY TO FINANCE THE PURCHASE OF AIRCRAFT GPA WAS FORCED TO SLASH
MUCH OF ITS ORDERS FROM MANUFACTURERS AND SEEK CONCESSIONS FROM BOTH LENDERS
AND EQUITY HOLDERS

UNDER THE NEW CORPORATE STRUCTURE MR RYAN IS EXPECTED TO BE APPOINTED
CHAIRMAN OF GE CAPITAL AVIATION MANAGEMENT LTD THE NEW GE CAPITAL
SUBSIDIARY THAT IS BEING SET UP TO MANAGE THE AIRCRAFT LEASING OPERATIONS OF
GPA AND GE CAPITAL

DENNIS STEVENSON A BRITISH MANAGEMENT CONSULTANT WHO SITS ON THE BOARDS OF
PEARSON PLC J ROTHSCHILD INSURANCE AND MILWAUKEEBASED MANPOWER INC HAS
BEEN OFFERED THE POST OF HEAD OF GPA GROUP PLC OFFICIALS CLOSE TO THE
COMPANY SAID THE UNIT WILL MANAGE THE DEBT LOAD AND IMPROVE THE BALANCE
SHEET OF THE COMPANY UNTIL GE CAPITAL DECIDES WHETHER TO EXERCISE ITS
OPTION

A NUMBER OF GPA'S NONEXECUTIVE DIRECTORS ARE ALSO STEPPING DOWN PEOPLE
CLOSE TO THE COMPANY SAID THESE DIRECTORS ARE NIGEL LAWSON THE FORMER
CHANCELLOR OF THE EXCHEQUER OF THE UK GARRET FITZGERALD THE FORMER IRISH
PRIME MINISTER AND SIR JOHN HARVEYJONES CHAIRMAN OF THE ECONOMIST LTD
THEY COULD NOT BE REACHED FOR COMMENT ON THEIR RESIGNATIONS

THE TERMS OF GE CAPITAL'S OPTION HAVE BEEN SWEETENED BY GPA AS PART OF THE
FINAL NEGOTIATIONS GPA GRANTED A CONCESSION TO GE CAPITAL BY EXTENDING THE
OPTION DATE ANOTHER YEAR TO MARCH 31 1998 AT NO EXTRA COST

GE IS A TOUGH NEGOTIATOR IT'S THE TYPE OF THING THAT IN THE MIDST OF
NEGOTIATIONS YOU CAN EXTRACT SAID MAX HOLMES AN ANALYST AT SALOMON
BROTHERS

THAT WAY GE CAPITAL HAS ANOTHER YEAR OF ALLOWING GPA TO WHITTLE DOWN ITS
DEBT LOAD BEFORE PURCHASING THE COMPANY AFTER ALL GPA AND ITS AFFILIATES
WILL BE BURDENED WITH MORE THAN 6 BILLION IN DEBT AND DEMAND FOR NEW
AIRCRAFT IS STILL LACKLUSTER

THE OTHER CONCESSION WAS GRANTED TO LENDERS WHICH HAD CONTINUED TO RECEIVE
PAYMENTS FROM GPA TOTALING 100 MILLION OVER THE LAST YEAR INITIALLY BANKS
WERE BEING ASKED TO RELEND THOSE PAYMENTS BUT THE COMPANY HAS AGREED TO LET
THE BANKS KEEP THE SOCALLED AMORTIZATION PAYMENTS PEOPLE CLOSE TO THE
TALKS SAID SOME BANKS HAD BEEN HOLDING OUT BECAUSE THEY BELIEVED THE
PACKAGE WAS MORE FAVORABLE TO SUBORDINATED CREDITORS WHO WOULD CONTINUE TO
BE PAID WHILE BANKS WOULD POSTPONE 1 BILLION IN PAYMENTS STILL ALMOST THE
ENTIRE BANK SYNDICATE IS NOW BELIEVED TO BE ON BOARD FOR THE AGREEMENT
PEOPLE CLOSE TO THE TALKS SAID CITICORP WHICH IS COORDINATING THE BANK
AGREEMENT DECLINED TO COMMENT

THE MUCHIMPROVED FORTUNES OF GPA HAVE PROPELLED THE PRICES OF THE COMPANY'S
BONDS MANY OF WHICH ARE HELD BY US INVESTORS AFTER HITTING A LOW OF
AROUND 200 PER 1000 FACE IN EARLY MAY ITS BONDS HIT A 1993 HIGH OF 785
LATE LAST WEEK ON EXPECTATIONS THAT THE AGREEMENT WOULD BE COMPLETED THOSE
LEVELS HAVE NOT BEEN SEEN SINCE NOVEMBER 9308300158 930830 CANON
REMANUFACTURING VENTURE

LAKE SUCCESS NY CANON US INC SAID IT LAUNCHED A VENTURE AT ITS UNIT
IN NEWPORT NEWS VA TO OVERHAUL CANON PRODUCTS FOR RESALE

CANON VIRGINIA INC HAS BEGUN REBUILDING USED CANON COPIERS AND OTHER
PRODUCTS WITH BOTH NEW AND USED PARTS THE COMPANY SAID ADDING THAT
FINISHED PRODUCTS WILL BE MARKETED BY THE COMPANY'S NATIONALACCOUNTS AND
GOVERNMENTMARKETING DIVISION REMANUFACTURED COPIERS WILL CARRY THE SAME
WARRANTY AS NEW ONES IT SAID

CANON US A SUBSIDIARY OF JAPAN'S CANON INC IN 1992 REPORTED NORTH
AMERICAN SALES OF 45 BILLION 9308300157 930830 CDI CORP MERGES TWO
UNITS

PHILADELPHIA CDI CORP SAID IT MERGED TWO OF ITS UNITS TO INCREASE
REVENUE AND ENLARGE THE COMPANY'S PRESENCE IN THE MIDWEST

INNOVATIVE INFORMATION SYSTEMS INC A CONSULTING SERVICE BASED IN NORWOOD
MASS MERGED WITH CDI COMPUTER SERVICE OF DETROIT THE COMBINED UNIT IS
EXPECTED TO HAVE ANNUAL REVENUE OF MORE THAN 40 MILLION THE COMPANY SAID

CDI IS A TECHNICALSERVICES AND MANAGEMENTRECRUITING COMPANY WITH SALES OF
8551 MILLION IN 1992 9308300156 930830 INTERNATIONAL HONG KONG
INFLATION FORECAST

HONG KONG THE HONG KONG GOVERNMENT REDUCED ITS INFLATION FORECAST FOR
1993 BY 05 PERCENTAGE POINT TO 90 BUT LEFT ITS PREDICTION FOR GROWTH AT
55

THE PREVIOUS ESTIMATE OF INFLATION AS MEASURED BY THE CONSUMER PRICE INDEX
A WAS FOUND TO BE HIGH BASED ON PRICE ACCELERATION SO FAR THIS YEAR A
GOVERMENT SOURCE SAID JULY'S READING OF 85 PROMPTED THE CUT HE SAID
UNLESS THINGS ARE DRASTIC INFLATION SHOULD REMAIN RELATIVELY MODERATE THE
REST OF THE YEAR 9308300155 930830 INTERNATIONAL GERMAN STEEL OUTPUT
INCREASES

WIESBADEN GERMANY GERMANY'S OUPTUT OF STEEL ROSE IN JULY FROM A YEAR
AGO BUT PRODUCTION DURING THE FIRST SEVEN MONTHS WAS LOWER ACCORDING TO
THE GERMAN FEDERAL STATISTICS OFFICE

IN JULY PRODUCTION OF RAW STEEL IN ALL OF GERMANY ROSE 69 TO 316 MILLION
TONS WHILE ROLLED STEEL PRODUCTION WAS UP 109 AT 240 MILLION TONS

HOWEVER FOR THE FIRST SEVEN MONTHS OF 1993 RAW STEEL PRODUCTION FELL 109
TO 2175 MILLION TONS WHILE ROLLED STEEL OUTPUT WAS DOWN 88 TO 1736
MILLION TONS 9308300154 930830 BOLSA CHICA SELLS DELTEC STAKE

NEWPORT BEACH CALIF BOLSA CHICA CO SAID IT SOLD ITS 44 INTEREST IN
DELTEC PANAMERICA SA FOR ABOUT 44 MILLION TO DELTEC'S MANAGEMENT

THE SALE OF THE MERCHANT BANK RESULTED IN A 2 MILLION PRETAX GAIN TO THE
REALESTATE DEVELOPMENT COMPANY BOLSA CHICA ALSO RECEIVED 3 MILLION IN
CASH FROM ABEX INC A MAKER OF INDUSTRIAL COMPONENTS AND SPECIALTY
MATERIALS FOR THE TERMINATION OF AN OPTION AGREEMENT IT HAD TO ACQUIRE
CERTAIN BOLSA CHICA ASSETS INCLUDING DELTEC AT 85 OF APPRAISED VALUE
9308300153 930830 OFFICIAL RESERVE ASSETS EDGED HIGHER IN JULY

WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 171 MILLION IN JULY TO
7414 BILLION THE TREASURY SAID FOLLOWING A 274 BILLION DECLINE IN
JUNE

THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 96 MILLION IN JULY TO
4209 BILLION WHILE ITS GOLD RESERVES WERE UNCHANGED AT 1106 BILLION

US HOLDINGS OF INTERNATIONAL MONETARY FUND SPECIAL DRAWING RIGHTS LAST
MONTH FELL 82 MILLION TO 891 BILLION AND ITS RESERVE POSITION AT THE IMF
INCREASED 157 MILLION TO 1208 BILLION 9308300152 930830 BUSINESS BRIEF
 SEVEN NETWORK LTD AUSTRALIAN COMPANY POSTS AN OPERATING LOSS FOR
YEAR

SEVEN NETWORK LTD AN AUSTRALIAN TELEVISION BROADCASTER REPORTED AN
OPERATING LOSS AFTER TAX AND ABNORMAL ITEMS OF 399 MILLION AUSTRALIAN
DOLLARS 267 MILLION FOR THE FISCAL YEAR ENDED JUNE 26

THE LOSS WAS MAINLY ATTRIBUTED TO HEAVY INTEREST PAYMENTS AND A A349
MILLION PROVISION FOR DEBT REPAYMENT A YEAR EARLIER THE COMPANY HAD A
PROFIT OF 97 MILLION

SEVEN NETWORK SAID IT EXPECTS TO MAKE A PROFIT IN THE CURRENT FISCAL YEAR

SALES JUMPED 25 TO A5644 MILLION FROM A4504 MILLION 9308300151
930830 MALAYSIA'S PROBE OF UNION PAPER GETS CONVICTION  
BUSINESSMAN RECEIVES FINE FOR SHORTSELLING ROLE INVESTIGATION WIDENS 
 BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL

KUALA LUMPUR THE MALAYSIAN GOVERNMENT'S WIDENING INVESTIGATION INTO
TRADING IRREGULARITIES IN UNION PAPER HOLDINGS BHD'S SHARES HAS YIELDED ONE
CONVICTION AND EVIDENCE OF MORE SERIOUS STOCKMARKET VIOLATIONS

ON SATURDAY A PROMINENT MALAYSIAN BUSINESSMAN TAN SRI IBRAHIM MOHAMED
PLEADED GUILTY TO SELLING 825000 UNION PAPER SHARES THAT HE DIDN'T OWN THE
51YEAROLD CHIEF EXECUTIVE OF TWO MALAYSIAN LISTED COMPANIES WAS FINED
500000 MALAYSIAN DOLLARS US196000 BY SESSIONS COURT JUDGE WAN ADNAN
MOHAMED AND RELEASED

THE ARREST ON FRIDAY AND THE PLEA THE FOLLOWING DAY WERE THE START OF
MALAYSIA'S FIRST LEGAL CASE INVOLVING SHORT SELLING WHICH IS PROHIBITED
UNDER THE COUNTRY'S SECURITIES INDUSTRY ACT BUT NONETHELESS OCCURS WITH SOME
FREQUENCY WHEN MARKET CONDITIONS ARE VOLATILE STOCKBROKERS SAY

SHORT SELLING TYPICALLY INVOLVES AN INVESTOR SELLING BORROWED SHARES IN THE
HOPE OF PROFITING BY BUYING AN EQUAL NUMBER OF SHARES LATER AT A LOWER PRICE
TO REPLACE THE BORROWED STOCK BUT STOCKBROKERS SAY MOST CASES IN MALAYSIA
INVOLVE AGREEMENTS TO SELL SHARES BY INVESTORS WHO HAVEN'T EVEN BORROWED THE
SHARES TAN SRI IBRAHIM CONTRACTED WITH SJ SECURITIES SDN BHD TO SELL MORE
THAN M83 MILLION IN UNION PAPER SHARES THAT HE NEVER POSSESSED AND HADN'T
BORROWED IN ADVANCE OF THE SALE

WHILE THE GOVERNMENT'S INVESTIGATION IS EXPECTED TO LEAD TO OTHER CHARGES OF
SHORTSELLING THERE ARE INDICATIONS THAT MORE SERIOUS TRADING INFRACTIONS
MAY HAVE OCCURRED

ZAINUN ALI WHOSE AGENCY BROUGHT THE CHARGE AGAINST TAN SRI IBRAHIM TOLD
THE MALAYSIAN PRESS LAST WEEK THAT HER DEPARTMENT HAS DISCOVERED EVIDENCE OF
INSIDER TRADING AND MARKET MANIPULATION INVOLVING UNION PAPER SHARES MS
ZAINUN DIDN'T IMPLICATE TAN SRI IBRAHIM OR IDENTIFY OTHER INDIVIDUALS
SUSPECTED OF THE VIOLATIONS

UNION PAPER IS A MAKER OF TOILET PAPER AND INCENSE LISTED ON THE KUALA
LUMPUR STOCK EXCHANGE'S SECOND BOARD FOR SMALLCAPITALIZATION STOCKS
TRADING IN UNION PAPER SHARES WAS SUSPENDED ON JUNE 29 AFTER THE EXCHANGE
DECLARED THAT THE STOCK HAD BEEN CORNERED BY AN INDIVIDUAL OR GROUP WITH THE
AIM OF PUSHING THE PRICE HIGHER AS OTHER INVESTORS ATTEMPTED TO COVER SHORT
POSITIONS IN THE STOCK

BEFORE THE SUSPENSION UNION PAPER'S SHARE PRICE JUMPED TO M23 IN MIDJUNE
FROM M173 LAST JANUARY THAT SURGE CAME AMID SPECULATION THAT THE COMPANY
WAS TARGETED FOR A TAKEOVER BY A COOPERATIVE LINKED TO MALAYSIA'S DOMINANT
POLITICAL PARTY THE UNITED MALAYS NATIONAL ORGANIZATION THE SHARES FELL
SHARPLY AFTER THE COOPERATIVE ANNOUNCED THAT IT WAS DEFERRING PLANS TO
ACQUIRE A VEHICLE FOR ITS PUBLIC LISTING WITHOUT NAMING UNION PAPER AS THE
TARGET

THE COOPERATIVE DEFERRED THE ACQUISITION ON JUNE 16 THE SAME DAY THAT TAN
SRI IBRAHIM CONTRACTED WITH SJ SECURITIES TO SELL 825000 UNION PAPER
SHARES THE EXPECTED FALL IN THE COMPANY'S SHARE PRICE AFTER THE
ANNOUNCEMENT PRESENTED AN OPPORTUNITY FOR THE BUSINESSMAN TO GRAB A HEFTY
PROFIT FROM THE DIFFERENCE BETWEEN THE SALE PRICE AND THE LOWER PRICE HE
EXPECTED TO PAY LATER TO COVER HIS POSITION BUT WITH THE COMPANY'S SHARES
CORNERED HE WAS UNABLE TO ACQUIRE THE SHARES NEEDED TO COMPLETE THE
TRANSACTION

LAST MONTH THE KUALA LUMPUR STOCK EXCHANGE ANNOUNCED THAT IT HAD IDENTIFIED
12 INVESTORS WHO SOLD 3320000 UNION PAPER SHARES THEY DIDN'T OWN THROUGH
EIGHT MALAYSIAN BROKERAGE FIRMS NONE OF THE OTHERS HAS BEEN CHARGED
PIONEER ENTREPRENEUR TAN SRI IBRAHIM ONCE A CLOSE ASSOCIATE OF PRIME
MINISTER MAHATHIR MOHAMAD IS THE CHIEF EXECUTIVE OF UNIPHOENIX CORP BHD
AND DAMANSARA REALTY BHD TWO PROPERTY CONCERNS

IN THE UNION PAPER CASE TAN SRI IBRAHIM FACED A FINE OF UP TO M1 MILLION
OR A PRISON TERM OF UP TO 10 YEARS OR BOTH A FINE AND IMPRISONMENT HIS
LAWYER DATUK ZAKI AZMI URGING LENIENCY NOTED THAT TAN SRI IBRAHIM WAS ONE
OF MALAYSIA'S FIRST AND MOST SUCCESSFUL MAJOR BUMIPUTRA OR INDIGENOUS
MALAYSIAN ENTREPRENEURS

THE EXCHANGE ANNOUNCED FRIDAY THAT TRADING IN UNION PAPER SHARES WILL RESUME
SEPT 6 BUT UNDER RESTRICTED CONDITIONS AND WITH NEARLY 15 MILLION
CONTESTED SHARES BANNED FROM TRADING UNTIL FURTHER NOTICE 9308300148
930830 ECONOMY MACHINETOOL ORDERS DECLINED BY 20 IN JULY  
BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL

MACHINETOOL ORDERS FELL 20 IN JULY FROM JUNE AS SEASONAL PLANT CLOSINGS
SLOWED ACTIVITY BUT ORDERS REMAINED WELL ABOVE THE YEAREARLIER LEVEL

WHAT YOU'RE DEALING WITH IS A SEASONAL ISSUE SAID JOHN E MCGINTY AN
ANALYST WITH FIRST BOSTON CORP COMPANIES AS A RULE TEND NOT TO ORDER WHEN
THEY'RE IN SUMMER SHUTDOWNS ORDERS HAVE FALLEN IN JULY FROM JUNE IN 12 OF
THE PAST 15 YEARS HE ADDED

JULY'S ORDERS TOTALED 2508 MILLION DOWN FROM 3137 MILLION IN JUNE BUT
THEY WERE UP 22 FROM 2054 MILLION A YEAR EARLIER SO FAR THIS YEAR
ORDERS ARE UP 37 TO 202 BILLION FROM 147 BILLION ACCORDING TO THE
ASSOCIATION FOR MANUFACTURING TECHNOLOGY AN INDUSTRY TRADE GROUP

MACHINE TOOLS CUT AND FORM METAL PARTS FOR OTHER MACHINES THEIR ORDERS ARE
CONSIDERED AN ECONOMIC HARBINGER BECAUSE THE TOOLS ARE SHIPPED NINE TO 18
MONTHS AFTER THEY ARE ORDERED

AS HAS BEEN THE CASE FOR MOST OF THE YEAR ORDERS FROM AUTO MAKERS CONTINUED
TO MAKE UP THE BULK OF THE MACHINETOOL ORDERS IN JULY AUTO MAKERS ARE
BUYING THE TOOLS IN AN EFFORT TO INCREASE PRODUCTIVITY CUT COSTS AND TURN
OUT NEW PRODUCTS MORE QUICKLY

AUTORELATED ORDERS ARE SLOWING HOWEVER AND ANALYSTS AGREE THAT PURCHASES
OF MACHINE TOOLS BY OTHER SECTORS MUST PICK UP IF THE INDUSTRY IS TO
EXPERIENCE A SUSTAINED RECOVERY INDEED THERE ARE SOME SIGNS THAT THAT WILL
HAPPEN THIS YEAR INQUIRY LEVELS ARE CLIMBING AT MACHINETOOL MAKERS THAT
SELL TO COMPANIES IN INDUSTRIES THAT AREN'T RELATED TO THE AUTO SECTOR AND
INTEREST RATES ARE LOW MAKING CAPITAL LESS EXPENSIVE

WE'RE JUST BARELY IN THE START OF THE MACHINETOOL CYCLE SAID ALEXANDER
PARIS AN ANALYST WITH BARRINGTON RESEARCH ASSOCIATES IN BARRINGTON ILL I
THINK THE IMPROVEMENT IS GOING TO PERSIST FOR A WHILE THIS TIME

DOMESTIC ORDERS DROPPED 23 TO 2332 MILLION IN JULY FROM 3012 MILLION IN
JUNE BUT COMPARED WITH JULY 1992 DOMESTIC ORDERS ROSE ALMOST 30 FROM
1801 MILLION AND THEY LEAPED 43 TO 184 BILLION FROM 128 BILLION
THROUGH THE YEAR'S FIRST SEVEN MONTHS

ORDERS FOR EXPORT JUMPED 40 IN JULY TO 176 MILLION FROM 126 MILLION IN
JUNE BUT THEY CONTINUED THEIR POOR SHOWING COMPARED WITH LAST YEAR FALLING
31 FROM 253 MILLION IN JULY 1992 AND 43 TO 1833 MILLION FROM 1914
MILLION ON A YEARTODATE BASIS 9308300147 930830 PACIFIC GAS TO REDEEM
BONDS

SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID IT WILL REDEEM ON OCT 1
439 MILLION OUTSTANDING OF TWO SERIES OF FIRST AND REFUNDING MORTGAGE BONDS
 THE 85 SERIES 77A DUE FEB 1 2009 AND THE 85 SERIES 87A DUE FEB 1
2020

HOLDERS OF THE 77A BONDS WILL RECEIVE 104110 PLUS ACCRUED INTEREST OF
2833 AND HOLDERS OF THE 87A BONDS WILL RECEIVE 104680 PLUS ACCRUED
INTEREST OF 2833 THE UTILITY HOLDING COMPANY SAID THE REDEMPTIONS ARE
EXPECTED TO REDUCE ITS ANNUAL FINANCING COSTS BY ABOUT 75 MILLION AND BY
554 MILLION OVER THE LIFE OF THE BONDS 9308300146 930830 NATIONAL FUEL
GAS CO

BUFFALO NY A UNIT OF NATIONAL FUEL GAS CO SAID IT WILL SEEK AN ANNUAL
RATE INCREASE OF 85 FROM THE NEW YORK STATE PUBLIC SERVICE COMMISSION TO
BE EFFECTIVE IN JULY 1994

NATIONAL FUEL GAS DISTRIBUTION CORP ANNOUNCED THE RATE FILING THAT WOULD
INCREASE RATES FOR CERTAIN CUSTOMERS BY ABOUT 680 A MONTH

THE COMPANY SAID IT NEEDED THE INCREASE DUE TO COSTS ASSOCIATED WITH
FEDERALLY MANDATED RESTRUCTURING OF THE NATURAL GAS INDUSTRY AND TO GENERAL
EXPENSES SUCH AS CONSTRUCTION PROPERTY AND INCOME TAXES AND UNCOLLECTABLE
GAS BILLS

THE RATE INCREASE WOULD AMOUNT TO A TOTAL OF 554 MILLION ANNUALLY
9308300145 930830 CORPORATE FOCUS TIME INC MAGAZINES ARE STUCK IN THE
DOLDRUMS  MORE WRENCHING CHANGES SEEM LIKELY AT TIME WARNER'S
PUBLISHING ARM  BY PATRICK M REILLY STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK JUST AS THE MAGAZINE INDUSTRY IS GRADUALLY RECOVERING FROM A
GRUELING SLUMP TIME INC'S MAGAZINE GROUP THE INDUSTRY'S PERENNIAL LEADER
IS FINDING THE DOLDRUMS HARD TO SHAKE OFF FOR THE FIRST HALF AD PAGES WERE
OFF AT MANY OF ITS US TITLES AND THROUGH JULY AD REVENUE FOR THE GROUP
DECLINED PROFITS AT SOME OF ITS MOST IMPORTANT TITLES ARE EXPECTED TO FALL
FOR THE FULL YEAR

THE MAGAZINE AND BOOK PUBLISHING ARM OF TIME WARNER INC IS EXPECTED TO
UNDERGO ANOTHER WRENCHING REORGANIZATION THAT COULD ENTAIL SHUFFLING ITS
TOPRANKING MAGAZINE SALES EXECUTIVES AND PUBLISHERS REDUCING PAYROLLS AND
REVISING A SALES STRUCTURE THAT SEEMS TO HAVE FIZZLED

TIME INC EXECUTIVES INSIST THE COMPANY'S POOR ADVERTISING PERFORMANCE ISN'T
A CAUSE OF THE CHANGES NOW UNDER REVIEW BUT CHANGE MIGHT BE WELL ADVISED
WHILE THE COMPANY'S TOTAL AD TAKE DOUBLES THAT OF THE NEXT LARGEST
PUBLISHING GROUP TIME INC'S AD REVENUE THROUGH JULY WAS OFF 22 MILLION
OR DOWN 3 FROM THE YEAR EARLIER ACCORDING TO LEADING NATIONAL
ADVERTISERS

THE NEXT THREE LARGEST MAGAZINE GROUPS HEARST CORP CONDE NAST
PUBLICATIONS INC AND NEW YORK TIMES CO ALL SHOWED SIGNIFICANT GAINS IN
AD DOLLARS FOR THE PERIOD

SOME OF TIME INC'S BIGGEST AND MOST PRESTIGIOUS TITLES MOREOVER ARE
LISTING BADLY ALL SEVEN OF THE CORE MAGAZINES AT THE CENTER OF THE 30TITLE
TIME INC LOST AD PAGES IN THE FIRST HALF AD PAGES WERE OFF AT LEAST 12 AT
TIME SPORTS ILLUSTRATED AND LIFE ACCORDING TO PUBLISHERS INFORMATION
BUREAU

THE EXACT OUTLINE OF THE CORPORATE RESHUFFLING ISN'T YET FINAL BUT COMPANY
INSIDERS EXPECT IT TO INCLUDE EXECUTIVE BUYOUTS AND POSSIBLY SOME STAFF
BUYOUTS AND LAYOFFS MARKING ANOTHER RETREAT FOR THE DIVISION THAT HAS
STRUGGLED SINCE THE 1989 MERGER OF WARNER COMMUNICATIONS INC AND TIME INC
IN 1991 TIME WARNER TOOK A 60 MILLION PRETAX CHARGE TO COVER THE COSTS OF
RESTRUCTURING SEVERANCE PAYMENTS FOR STAFF REDUCTIONS AND CONSOLIDATIONS
OF CERTAIN OPERATIONS BY THE END OF 1991 ABOUT 600 POSITIONS WERE
ELIMINATED INCLUDING ABOUT 100 ON THE EDITORIAL SIDE

THE RECENT SLUMP AT TIME INC'S MAGAZINES HAS SOME ANALYSTS QUESTIONING
ONCE AGAIN THE PUBLISHING SIDE'S OVERALL IMPORTANCE TO TIME WARNER GERALD
M LEVIN TIME WARNER CHAIRMAN HAS GONE TO GREAT LENGTHS TO EMPHASIZE THAT
HE PLANS TO KEEP IN THE COMPANY FOLD THE BUSINESS ON WHICH THE OLD TIME INC
WAS FOUNDED BUT SOME ON WALL STREET WONDER WHY

I'M NOT A BELIEVER THAT PUBLISHING IS A CORE STRATEGIC PART OF THE
COMPANY SAYS LISBETH BARRON OF SG WARBURG & CO

INDEED THE MAGAZINE BUSINESS NOW MEANS LESS TO TIME WARNER IN STRICTLY
FINANCIAL TERMS THAN EVER BEFORE PUBLISHING BOOKS AND MAGAZINES PROVIDED
LESS THAN 24 OF TIME WARNER'S TOTAL REVENUE LAST YEAR DOWN FROM ALMOST 28
THREE YEARS AGO THE SEGMENT CONTRIBUTED LESS THAN 19 OF OPERATING PROFIT
LAST YEAR DOWN FROM ALMOST 25 THREE YEARS EARLIER BACK IN THE DAYS BEFORE
THE MERGER THE OLD TIME INC'S MAGAZINES ALONE ACCOUNTED FOR ABOUT 40
REVENUE AND ALMOST 45 OF PROFIT

TIME WARNER MANAGEMENT APPEARS PREOCCUPIED MORE WITH ESTABLISHING A
DIGITALELECTRONIC HIGHWAY FOR ITS CABLE SYSTEMS AND FILM STUDIO YOU GET
THE FEELING PUBLISHING ISN'T THE HIGHEST PRIORITY THESE DAYS SAYS JOHN
REIDY OF SMITH BARNEY BUT YOU HAVE TO BELIEVE THEY WANT TO KEEP THE
PUBLISHING COMPANY TOGETHER HE ADDS THAT ON THE PUBLISHING SIDE
SOMETHING HAS CLEARLY MISFIRED ALONG THE WAY

TO BE SURE THERE ARE BRIGHT SPOTS IN THE TIME INC MAGAZINE LINEUP IN THE
LOS ANGELESBASED TIME INC VENTURES UNIT SPECIALINTEREST MAGAZINES SUCH
AS MARTHA STEWART LIVING HAVE SHOWN QUICK GROWTH IN ADVERTISING SO HAVE
REGIONAL TITLES SOUTHERN ACCENTS AND SOUTHERN LIVING TIME INC ALSO HAS
SOME PROMISING NEW ENTRIES SUCH AS VIBE A HIPHOP MAGAZINE CREATED IN A
JOINT VENTURE WITH MUSIC IMPRESARIO QUINCY JONES

IN ADDITION ADPAGE DECLINES DON'T NECESSARILY MEAN A COMMENSURATE DROP IN
PROFIT TIME EXECUTIVES MAINTAIN FOR THE FIRST HALF OF 1993 TIME INC HAD
OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION OF 161 MILLION A
GAIN FROM 132 MILLION A YEAR EARLIER REGINALD K BRACK JR TIME INC'S
CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS SAID THE COMPANY IS SIMPLY LESS
RELIANT ON AD DOLLARS THAN IN THE PAST ABOUT TWOTHIRDS OF THE PUBLISHING
SIDE'S 3 BILLION IN REVENUE COMES DIRECTLY FROM CONSUMER SALES OF BOOKS AND
MAGAZINES

BUT POOR AD SALES IN RECENT YEARS NONETHELESS REPRESENT A STRONG IMPETUS
FOR THE EXPECTED REORGANIZATION NOW UNDER REVIEW THE COMPANY DECLINED TO
COMMENT BUT TIME INSIDERS EXPECT A REDUCTION IN THE MAGAZINE GROUP'S
VARIOUS ECHELONS THE CHANGES AREN'T EXPECTED UNTIL AFTER LABOR DAY

ONE LIKELY TARGET TIME INC'S UNIQUE AND CONSIDERED BY SOME UNSUCCESSFUL
CORPORATE SALES STRUCTURE IT PUT IN PLACE TWO YEARS AGO THE GROUP'S AD
DECLINES HAVE BEEN BLAMED ON LOWER SPENDING BY JAPANESE AUTO MAKERS AND
AMERICAN TOBACCO COMPANIES BUT COMPANY EXECUTIVES ALSO PRIVATELY LAY BLAME
ON THE SALES STRUCTURE IT SHIFTED POWER AWAY FROM THE PUBLISHERS OF
INDIVIDUAL MAGAZINES AND TOWARD FOUR CORPORATE REGIONAL VICE PRESIDENTS IN
AN EFFORT TO BOOST THE SALE OF AD PACKAGES ACROSS A BROAD RANGE OF TIME
WARNER PROPERTIES BUT FEW OF THOSE BIGTICKET PACKAGES MATERIALIZED AND
THE NEW SETUP SPARKED INFIGHTING AMONG SALES STAFFS AND CONFUSION ON
MADISON AVENUE

THE APPROACH HAS BEEN LARGELY A DUD ON MADISON AVENUE AND IN FACT HAS
GENERATED SOMETHING CLOSE TO ILLWILL FOR A PUBLISHER ONCE KNOWN FIRST FOR
STERLING EDITORIAL QUALITY BUT NOW BEST KNOWN FOR CUTTING DEALS

TIME INC HAS BEEN THE MOST AGGRESSIVE AT LEVERAGING ALL OF THEIR
PROPERTIES IN AN EFFORT TO MAKE A SALE SAYS STEVEN FARELLA EXECUTIVE VICE
PRESIDENT AT JORDAN MCGRATH CASE & TAYLOR AD AGENCY BUT IN SO DOING TIME
HAS CREATED A COMMODITY OUT OF A BUSINESS THAT WAS ONCE HINGED ON QUALITY
HE SAYS THEY HAVE TAKEN THEIR EYE OFF SELLING EACH MAGAZINE AS A
MEANINGFUL PIECE OF THE READER'S LIFE BUT THAT IS ESSENTIALLY WHAT
ADVERTISERS ARE BUYING WHEN THEY BUY SPORTS ILLUSTRATED OR PEOPLE

SPORTS ILLUSTRATED STILL HAS NO MATCH IN ITS NICHE BUT ITS ONCE DOMINANT
AURA IS BEING LOST TO TELEVISION AND CABLESPORTS PROGRAMMING ITS AD PAGES
IN THE FIRST HALF WERE OFF 14 AND THE TITLE'S OPERATING PROFIT WHICH
PEAKED AT 90 MILLION A FEW YEARS AGO IS EXPECTED TO BE DOWN 25 FROM THAT
LOFTY LEVEL SPORTS ILLUSTRATED HAS GENERATED NEW REVENUE FROM ONETIME
ISSUES AND IS BRANCHING OUT INTO TELEVISION PRODUCTION BUT TOTAL PAID
CIRCULATION GREW ONLY 1 IN THE FIRST HALF

PEOPLE REMAINS THE STARSTRUCK POWERHOUSE ITS ANNUAL OPERATING PROFIT OF
180 MILLION IS TOPS IN THE COMPANY BUT IT TOO IS WATCHING COMPETITORS
SUCH AS THE EUROPEAN PUBLISHERS OF HELLO A PEOPLELIKE MAGAZINE IN EUROPE
THAT IS NOW TARGETING US READERS PEOPLE IS NOW POURING MONEY INTO A TEST
ISSUE OF A SPINOFF CALLED IN STYLE AN EVEN SOFTER VERSION OF THE ORIGINAL

TIME INC'S FLAGSHIP TIME MAGAZINE ALSO HAS MADE STRIDES TO MOVE BEYOND
ITS TRADITIONAL FORMAT RECENTLY IT SIGNED A DEAL WITH AMERICAN ONLINE INC
TO CREATE WEEKLY INTERACTIVE EDITIONS FOR THE NATIONAL COMPUTER NETWORK BUT
THAT WON'T COME NEAR MAKING UP FOR THE 12 DROP IN AD PAGES IN THIS YEAR'S
FIRST HALF RANKING THE MAGAZINE THIRD BEHIND NEWSWEEK AND US NEWS & WORLD
REPORT IN AD PAGES 9308300144 930830 LEISURE & ARTS IN CONCERT A
STOCKHAUSEN RARITY  BY MARK SWED

LENOX MASS THERE IS NO MUSIC MORE MALIGNED THESE DAYS THAN THE MUSIC
MADE BY THE AVANTGARDE COMPOSERS OF THE 1950S THAT WAS THE SUPPOSEDLY ARID
DECADE WHEN COMPOSERS BECAME TYRANNICAL AUTOMATONS THEY WROTE HUGE
CONVOLUTED HOPELESSLY COMPLEX WORKS REALIZED THROUGH ARCANE MATHEMATICAL
PROCEDURES PLAYERS WERE ASKED TO PLAY THE UNPLAYABLE LISTENERS TO
APPRECIATE COMPLEXITIES INCOMPREHENSIBLE TO THE EAR AND NOTHING MADE
TRADITIONAL MUSICAL SENSE SOME CRITICS ARE NOW GOING SO FAR AS TO CLAIM
THAT THE NAZIS IN THEIR INFAMOUS BANNING OF DEGENERATE MUSIC AND MURDER
OF COMPOSERS IN CONCENTRATION CAMPS ACTUALLY KILLED EMOTION IN PROGRESSIVE
MUSIC FOR AT LEAST A GENERATION

TELL THAT HOWEVER TO THE HORDES OF PEOPLE WHO SWARMED INTO TANGLEWOOD
WEDNESDAY NIGHT TO HEAR AN EXCEEDINGLY RARE PERFORMANCE OF THE MASSIVE
GRUPPEN WRITTEN IN 1957 FOR THREE ORCHESTRAS BY THAT MOST MEGALOMANIACAL
GERMAN OF THEM ALL KARLHEINZ STOCKHAUSEN AT THE END OF THE CONCERT BY THE
TANGLEWOOD MUSIC CENTER ORCHESTRA SHOUTS OF ENCORE COULD BE HEARD
THROUGH THE THUNDEROUS APPLAUSE EVEN THOUGH THE 24MINUTE PIECE HAD ALREADY
BEEN PLAYED TWICE PLAYERS BEGAN RHYTHMICALLY CHANTING OLLY OLLY IN
HOMAGE TO THEIR CONDUCTOR OLIVER KNUSSEN WHOSE HERCULEAN EFFORTS MADE THE
EXTRAORDINARY PERFORMANCE THE HIGHLIGHT OF TANGLEWOOD'S ANNUAL
CONTEMPORARYMUSIC FESTIVAL

SUCH A FANATICAL RESPONSE TO FANATICAL MUSIC SHOULD NOT HOWEVER BE TAKEN
TO MEAN THAT FASCISM IS CREEPING INTO THE CONTEMPORARYMUSIC SCENE INDEED
THE FESTIVE MOOD HERE WAS PRECISELY THE OPPOSITE A VERY DIVERSE AUDIENCE
WHICH INCLUDED MANY MEMBERS OF TANGLEWOOD'S RESIDENT BOSTON SYMPHONY
ORCHESTRA RESPONDED WITH SPONTANEOUS DELIGHT THESE FOLKS WERE HAPPILY
SURPRISED THAT GRUPPEN HAD TURNED OUT TO BE A GENUINELY GREAT WORK OF ART
FULL OF EXTRAVAGANT CHARACTER AND EVEN HUGELY AMUSING ON A VISCERAL LEVEL

GRUPPEN EARNED ITS FEARSOME REPUTATION BECAUSE IT WAS MR STOCKHAUSEN'S
FIRST LARGESCALE WORK AND THE FIRST REAL MANIFESTATION OF THE OUTRIGHT
WAGNERIAN SCOPE OF HIS AMBITION AND VISION IT CALLS FOR 109 PLAYERS TO BE
DIVIDED INTO THREE FAIRLY EQUAL ORCHESTRAS ONE IS PLACED ON THE STAGE THE
OTHER TWO ON SPECIALLY BUILT PLATFORMS ON EITHER SIDE OF THE AUDIENCE
METERS AND TEMPOS ARE SO MATHEMATICALLY COMPLEX THAT EACH ORCHESTRA REQUIRES
ITS OWN CONDUCTOR FOR THE TANGLEWOOD PERFORMANCE MR KNUSSEN SAID THAT HE
AND HIS TWO COLLEAGUES REINBERT DE LEEUW A DUTCH SPECIALIST IN
CONTEMPORARY MUSIC AND ROBERT SPANO A YOUNG AMERICAN CONDUCTOR OF MUCH
PROMISE HAD A NUMBER OF REHEARSALS IN WHICH THEY SAT AROUND A TABLE BEATING
TIME TOGETHER

GRUPPEN OR GROUPS CONSISTS OF 174 SHORT SECTIONS OF DIFFERING
CHARACTERS THAT OVERLAP IN EVERCHANGING WAYS AMONG THE THREE ORCHESTRAS AT
TIMES THE INTERACTIONS CAN BE HAIRRAISING IN THEIR INDEPENDENT
COMPLEXITIES TAKING SCHOENBERG'S IDEA OF 12TONE OR SERIAL MUSIC TO ITS
ULTIMATE MR STOCKHAUSEN CREATED MATHEMATICAL SEQUENCES TO CONTROL EVERY
ELEMENT OF THE COMPOSITION AND INTERRELATE EVERYTHING FROM THE TINIEST
DETAILS OF DYNAMICS TO THE LARGEST SCALE OF FORMS THE RESULTANT INTRICACIES
APPROACH THOSE OF A LIVING ORGANISM IT TOOK THE COMPOSER WHO WAS IN HIS
20S AT THE TIME TWO YEARS OF EXTRAORDINARILY RIGOROUS WORK JUST TO GET ALL
THE NOTES ON PAPER

AND YET GRUPPEN IS A WORK THAT SOUNDS AS IF EVERY NOTE MATTERS LIKE
SCHOENBERG MR STOCKHAUSEN HAS A MUSICAL AUTHORITY THAT OVERRIDES WHATEVER
SYSTEM HE CREATES AND GRUPPEN IN PERFORMANCE AND ESPECIALLY IN A
PERFORMANCE BY THIS WELLREHEARSED AND HIGHLY TALENTED ORCHESTRA OF THE
LEADING MUSIC STUDENTS IN THE NATION COULDN'T BE MORE DRAMATIC NOR THE
EAR MORE ENTICED THAN IT IS BY THE CONTINUAL SHIFTING OF MUSICAL COLORS
MIDWAY THROUGH THE PIECE MR STOCKHAUSEN'S PERSONALITY REALLY BEGINS TO
MAKE ITSELF FELT WHEN HERALDIC TRUMPETERS AND TROMBONISTS CIRCLE THE HALL
ANNOUNCING A RIOTOUS CLIMAX OF DEAFENING GONGS THAT CAUSED MEMBERS OF THE
AUDIENCE TO LOOK AROUND AT EACH OTHER WITH GREAT GRINS OF DELIGHT ON THEIR
FACES

ANYONE WHO HAS FOLLOWED MR STOCKHAUSEN'S EVERMOREGRANDIOSE CREATIONS
SINCE GRUPPEN RECOGNIZED IN THIS DELIGHTFUL CLANGOR THE FIRST STIRRINGS OF
THE COMPOSER'S FASCINATION WITH THE IDEA OF A VISIONARY INDIVIDUAL RISING
ABOVE THE MASSES WITH A UNIVERSAL SPIRITUAL MESSAGE THERE WAS ANOTHER
MOMENT OF DEJA VU NEAR THE END IN WHICH AN ETHEREAL HIGH E IN THE VIOLINS
CIRCLED THE THEATER IT WAS AN EARLY EXAMPLE OF THE MYSTICAL FLIGHTS OF
FANCY THAT HAVE BECOME PART OF MR STOCKHAUSEN'S WORK SINCE THE 70S

DURING MUCH OF THAT INTERVENING TIME MR STOCKHAUSEN WAS THE EMBODIMENT OF
MODERN MUSIC A LEADER IN ELECTRONIC COMPOSITION AND IN ALMOST EVERYTHING
ELSE LATELY HOWEVER HE HAS BECOME A SHADOWY BIZARRE FIGURE A MYSTIC WHO
SPENDS HIS TIME IN HIS HEXAGONAL HOUSE OUTSIDE OF COLOGNE SURROUNDED BY
ACOLYTES WRITING A MONUMENTAL SEVENOPERA CYCLE LICHT LIGHT THAT HE
HAS BEEN WORKING ON FOR MORE THAN A DECADE HE OCCASIONALLY SHOWS UP AT
EUROPEAN MUSIC FESTIVALS BUT HIS WORKS ARE ALMOST NEVER PROGRAMMED
OTHERWISE AND HE IS HARDLY EVER PERFORMED IN THE US ANYMORE THE
TANGLEWOOD GRUPPEN WAS ONLY THE SECOND AMERICAN PERFORMANCE OF IT THE
FIRST WAS AT THE NEW ENGLAND CONSERVATORY SOME 30 YEARS AGO DEUTSCHE
GRAMMOPHON THE LEADING GERMAN RECORD COMPANY ONCE RECORDED NEARLY
EVERYTHING HE WROTE AS HE FINISHED IT BUT STOPPED YEARS AGO AND HAS NEVER
EVEN BOTHERED TO REISSUE THE RECORDINGS ON CD IN FRUSTRATION MR
STOCKHAUSEN PRIVATELY BROUGHT OUT CD TRANSFERS OF THOSE RECORDINGS BUT HE
HAS YET TO MAKE THEM AVAILABLE HERE

ALL OF THIS IS VERY SAD HOWEVER EXCESSIVE SOME OF HIS CURRENT MYSTICAL
NOTIONS MAY APPEAR OR HOWEVER OUTRAGEOUS HIS EGO MR STOCKHAUSEN WAS ONCE A
GREAT COMPOSER AS THIS ENTHUSIASTIC PERFORMANCE OF GRUPPEN PROVED
MOREOVER THERE IS EVERY INDICATION THAT HE IS STILL A GREAT COMPOSER WHO
HAS NEVER ONCE PULLED BACK FROM HIS EXTRAVAGANT VISION OF THE FUTURE
9308300143 930830 ENTERPRISE OLDER CONSUMER BECOMES TARGET OF SMALL
FIRMS  BY MELISSA LEE STAFF REPORTER OF THE WALL STREET JOURNAL

WHEN VICKI THOMAS FIRST MET THE DANCIN' GRANNIES IN LATE 1989 SHE SAW MORE
THAN A TROUPE OF HEALTHCRAZED SPANDEXCLAD GRANDMOTHERS PRANCING AROUND A
FITNESS CONVENTION SHE SAW DOLLAR SIGNS

FOR MS THOMAS THE GRANNIES WERE AN OPPORTUNITY TO FILL A NICHE IN THE
HOWTO VIDEO INDUSTRY MOST FITNESS VIDEO STARS ARE YOUNG SUPERMODELS AND
ACTRESSES MS THOMAS THOUGHT PLENTY OF WOMEN OVER 50 WOULD LIKE TO HUFF AND
PUFF WITH VIDEO STARS A LITTLE MORE LIKE THEMSELVES THREE YEARS AND ONE
PHIL DONAHUE SHOW LATER THE DANCIN' GRANNIES HAVE SOLD MORE THAN ONE
MILLION VIDEOS ON MS THOMAS'S LABEL

WITH THE 50PLUS MARKET PROJECTED TO GROW MORE THAN 50 IN THE NEXT 30
YEARS A GROWING NUMBER OF ENTREPRENEURS LIKE MS THOMAS ARE BANKING ON
DEMOGRAPHICS BY DEVELOPING SPECIALIZED PRODUCTS OR SERVICES DESIGNED FOR THE
MATURE MARKET WITHIN THE PAST FIVE YEARS A PROLIFERATION OF SMALL
COMPANIES HAS BEGUN AGGRESSIVELY TARGETING OLDER PEOPLE SAYS J DREW
HIATT EXECUTIVE VICE PRESIDENT AND DIRECTOR OF GOVERNMENT AFFAIRS AT THE
NATIONAL BUSINESS OWNERS' ASSOCIATION A WASHINGTON TRADE GROUP

WHILE VERY FEW COMPANIES MARKETED EXCLUSIVELY TO THE AGING A DECADE AGO MR
HIATT SAYS A NUMBER OF SMALL BUSINESSES ARE NOW BUILDING ENTIRE COMPANIES
AROUND THE AGING OFTEN THEY EXPLOIT NICHES TOO SMALL AND SPECIALIZED TO
ATTRACT MASS MARKETERS BUT THAT DOESN'T MEAN THERE ISN'T MONEY THERE

FIRMS ARE BEGINNING TO TARGET THE MARKET BECAUSE 50PLUS IS THE WEALTHIEST
SEGMENT OF THE ECONOMY SAYS KEN MARINELLI PRESIDENT OF MARINELLI
COMMUNICATIONS INC A NEW YORK MARKETING AGENCY WITH A DIVISION
SPECIALIZING IN THE 50PLUS MARKET

BUT BREAKING INTO THE MARKET CAN BE TOUGH SAYS MS THOMAS FOUNDER OF
THOMAS & PARTNERS CO OF WESTPORT CONN FOR INSTANCE STORES WERE RELUCTANT
TO STOCK VIDEOS WHOSE STARS WERE WOMEN BETWEEN THE AGES OF 50 AND 70 THE
FORMER ABC SALES PROMOTION EXECUTIVE SAYS

I WAS TOLD THAT THEY DIDN'T TARGET THAT MARKET AND THAT PEOPLE OVER 50 HAD
A LOWER INCIDENCE OF OWNING A VCR MS THOMAS SAYS UNABLE TO FIND
INVESTORS SHE EVENTUALLY COVERED DANCIN' GRANNIES VIDEOPRODUCTION COSTS
HERSELF I KNEW THE AVERAGE WOMAN OVER 50 IN PEORIA WOULD ENJOY MY VIDEO
AND I KNEW I HAD TO CREATE A DEMAND SHE SAYS

A DANCIN' GRANNIES PERFORMANCE ON DONAHUE PIQUED INTEREST IN THE VIDEO
TODAY MS THOMAS HAS FIVE HOWTO VIDEOS FOR THE 50PLUS MARKET AMONG THEM
GYM DANDY AN EXERCISE VIDEO FOR 50PLUS MEN AND WHAT ME PAY FOR
NURSING HOME COSTS

MS THOMAS ESTIMATES THAT HER COMPANY'S VIDEO SALES FOR THE FOURTH QUARTER
THIS YEAR WILL APPROACH 200000 HER COMPANY ALSO MARKETS OTHER SPECIALIZED
PRODUCTS FOR THE OLDER MARKET SUCH AS RUBBER SILVERWARE GRIPPERS FOR
ARTHRITIC PEOPLE WHO HAVE DIFFICULTY GRASPING THIN UTENSILS

BETTY SOBEL SAYS SHE TOO HOPES TO CASH IN ON THE DEMOGRAPHIC TREND A
SELFPROCLAIMED YOUNG 69 WITH MORE THAN 20 YEARS IN THE TRAVEL BUSINESS
MS SOBEL PLANS A JANUARY GRAND OPENING FOR MATURE TOURS AN AGENCY THAT
WILL SPECIALIZE IN TRAVEL FOR YOUTHFUL SPIRITS OVER 50

MANY PEOPLE WHO HAVE BEEN WITH ME OVER THE YEARS ARE NOW OVER 50 SAYS MS
SOBEL SHE HAS OPERATED HER TRAVEL AGENCY FOR SINGLES SOLO FLIGHTS OF
WESTON CONN FOR THE PAST 20 YEARS LISTENING TO WHAT CUSTOMERS ARE
TELLING ME THEY WANT TO GO ON TOURS BUT DON'T WANT TO TRAVEL WITH KIDS
MS SOBEL SAYS SHE ADDS THAT IN FIVE DAYS SHE RECEIVED ABOUT 100 RESPONSES
TO A RECENT 1000CUSTOMER MAILING ANNOUNCING MATURE TOURS

I KNOW WHAT IT'S LIKE TO BE SINGLE OVER 50 AND WANTING TO TRAVEL SAYS
MS SOBEL WHO WILL TURN 70 WHEN MATURE TOURS OFFICIALLY OPENS IN JANUARY
AS AN ACTIVE 69 YEAR OLD I KNOW I DON'T WANT TO TRAVEL WITH GOLDENAGE
GROUPS THAT IMPLIES PEOPLE WHO ARE VERY MUCH ELDERLY AND NEED SPECIAL
TREATMENT BUT THAT'S NOT THE CASE FOR MANY OF US

THE FIRST TOUR WILL TAKE A GROUP OF ABOUT 15 TO COSTA RICA IN JANUARY FOR
ABOUT 1300 A PERSON AND A SECOND TOUR IS ALREADY IN THE WORKS FOR MAY TO
COMMEMORATE THE 50TH ANNIVERSARY OF DDAY IN EUROPE

BUT NOT EVERYONE TRYING TO TAP THE OLDER MARKET IS DESIGNING COMPLETELY NEW
PRODUCTS AND SERVICES LIKE BIG CORPORATIONS MANY SMALL CONCERNS ARE
REPACKAGING AND REMARKETING EXISTING PRODUCTS THIS ALSO TAKES A KNACK

STEVE BLOCK PRESIDENT OF SPRI PRODUCTS INC OF BUFFALO GROVE ILL DECIDED
THAT TARGETING THE GROWING OLDER MARKET WAS THE BEST WAY TO INCREASE HIS
BUSINESS HIS COMPANY MANUFACTURES FLEXIBLE RESISTANT RUBBER TUBES AND
BANDS USED PRIMARILY BY REHABILITATION AND FITNESS CENTERS FOR MUSCLE
STRENGTHENING

MR BLOCK SAYS HE STARTED DISTRIBUTING HIS PRODUCTS TO THE 50PLUS MARKET BY
PACKAGING HIS RUBBERIZED TUBES AND BANDS IN MS THOMAS'S GYM DANDY VIDEO
THE VIDEO SHOWS EXERCISES USING MR BLOCK'S PRODUCTS HIS RESISTANT EXERCISE
EQUIPMENT HAS ALSO REACHED THE MATURE MARKET THROUGH FITNESS CLUBS OFFERING
SPECIALIZED EXERCISE CLASSES FOR THOSE 50 AND OVER

AS A RESULT SALES TO THE OLDER MARKET HAVE SOARED FROM NOTHING TO NEARLY
12 OF ALL REVENUE MR BLOCK SAYS THE COMPANY EXPECTS TOTAL VOLUME OF
ABOUT 35 MILLION THIS YEAR AND AIMS TO MORE THAN DOUBLE SALES TO THE
50PLUS MARKET IN TWO YEARS HE ADDS

YET PLENTY OF BUSINESSES STILL IGNORE THE AGING POPULATION MS THOMAS SAYS
WIDESPREAD MATURE MARKETING AND PRODUCT DEVELOPMENT PROBABLY WON'T CATCH ON
UNTIL MORE SMALLER BUSINESSES START EARNING SIZABLE PROFITS FROM THEIR NEW
SPECIALIZED VENTURES

THE DANCIN' GRANNIES PRODUCER SAYS SHE IS JUST BEGINNING TO PROFIT FROM
HER VENTURE BUT SHE THINKS THE GROWTH OF EARLY EFFORTS IN THE FIELD WILL
ENCOURAGE OTHERS TO ENTER SOMEBODY'S GOT TO DO IT FIRST AND BE SUCCESSFUL
AT IT BECAUSE SOCIETY IS SO CAUGHT UP IN BEING YOUTHFUL SHE SAYS
9308300142 930830 WHO'S NEWS CHAIRMAN STEPS DOWN AT CONCEPTRONICS
INC

PORTSMOUTH NH CONCEPTRONICS INC SAID ITS CHAIRMAN PAUL DE VREE HAS
RESIGNED FOR PERSONAL REASONS AND HAS SOLD HIS HOLDINGS AMOUNTING TO ABOUT
30 OF THE COMPANY'S COMMON STOCK OUTSTANDING

SUCCEEDING MR DE VREE 49 YEARS OLD IS GARRY PRIME 50 PRESIDENT AND A
DIRECTOR OF SONTEK INDUSTRIES INC HINGHAM MASS

MR PRIME WILL RETAIN HIS POSITIONS WITH SONTEK A CLOSELY HELD MAKER OF
MEDICAL PRODUCTS IN WHICH HE IS ALSO A MAJOR SHAREHOLDER

THE COMPANY LOOKS FORWARD TO CONTINUED GROWTH UNDER GARRY PRIME'S
LEADERSHIP SAID JOSEPH GISLER PRESIDENT OF CONCEPTRONICS WE VIEW THIS
CHANGE AS A VERY POSITIVE DEVELOPMENT IN CONCEPTRONICS' CONTINUED GROWTH AND
SUCCESS

CONCEPTRONICS WHICH MAKES PROCESS EQUIPMENT USED IN THE ASSEMBLY OF
COMPUTER COMPONENTS AND CIRCUIT BOARDS HAD 1992 SALES OF 10 MILLION

MR DE VREE'S 502696 COMMON SHARES WERE BOUGHT BY SONTEK AND BY JAMES D
GERSON 49 A CONCEPTRONICS DIRECTOR WHO IS ALSO CHAIRMAN OF SONTEK
9308300141 930830 WHO'S NEWS DOLLAR GENERAL CORP

DOLLAR GENERAL CORP NASHVILLE TENN REGINALD D DICKSON CHAIRMAN OF
NEW AGE BANK CORP AND PRESIDENT EMERITUS OF INROADS INC WAS ELECTED TO
THE BOARD OF THIS DISCOUNT RETAIL CHAIN THE ELECTION OF MR DICKSON 47
YEARS OLD BOOSTS THE BOARD'S SIZE TO NINE MEMBERS 9308300140 930830
INTERNATIONAL BRITISH AEROSPACE TAIWAN AEROSPACE AGREE ON PLAN TO
FINANCE JOINT VENTURE  BY JEREMY MARK STAFF REPORTER OF THE WALL
STREET JOURNAL

TAIPEI TAIWAN THE NEW FINANCING PLAN ANNOUNCED FRIDAY FOR THE JOINT
VENTURE BETWEEN BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP LOOKS A LOT
LIKE FLYING ON A WING AND A PRAYER

AFTER MONTHS OF NEGOTIATION AND RENEGOTIATION THE TWO COMPANIES HAVE THROWN
AWAY THEIR ORIGINAL BLUEPRINT IN THE FACE OF HEATED RESISTANCE FROM A KEY
TAIWANESE BANK THEY HAVE REPLACED IT WITH A SCALEDBACK FINANCIAL PLAN
BASED ON THE UNCERTAIN NOTION THAT THE VENTURE WILL BE ABLE TO TAP FOREIGN
BANKS FOR SUBSTANTIAL SUMS LATER AT THIS STAGE THE TWO COMPANIES WILL BE
CALLED UPON TO COMMIT MUCH LESS MONEY THAN ORIGINALLY PLANNED

IF THE TWO SIDES CAN REACH THEIR LATEST FINAL AGREEMENT ON THE VENTURE AT
TALKS NEXT MONTH IN LONDON HARDLY A FOREGONE CONCLUSION THE TAIWANESE WILL
OBTAIN FIRM GUARANTEES FROM BRITISH AEROSPACE FOR THE TRANSFER OF
TECHNOLOGY MOREOVER THEY WILL RECEIVE A CONTRACTUAL COMMITMENT FROM THE
BRITISH THAT THE VENTURE WILL JOINTLY DEVELOP A MIDSIZE PASSENGER JET A
TWOENGINE PLANE CALLED THE RJX

UNDER THE ORIGINAL JOINTVENTURE CONTRACT THE TWO COMPANIES AGREED TO SET
UP PARALLEL ASSEMBLY LINES IN BRITAIN AND TAIWAN TO PRODUCE A FOURENGINE
PASSENGER PLANE THAT BRITISH AEROSPACE CURRENTLY MAKES BUT THERE WAS NO
FIRM COMMITMENT IN THE AGREEMENT ON TECHNOLOGY TRANSFER AND DEVELOPMENT OF
THE RJX

THIS SEEMS TO BE HEADED MORE IN THE DIRECTION OF A TECHNOLOGYTRANSFER
ARRANGEMENT THAN A TRADITIONAL MANUFACTURING JOINT VENTURE SAYS AN
OBSERVER WHO HAS FOLLOWED THE SITUATION CLOSELY WHAT THE TAIWANESE HAVE
BEEN CONCERNED ABOUT IS THAT THE BRITISH WOULD REAP THE BENEFITS EARLY
BECAUSE THEY WOULD MAINTAIN THE VALUE OF THE CURRENT LINE OF FOURENGINE
AIRCRAFT WHILE THE TAIWANESE MIGHT GET SHORTCHANGED BY THE TIME THE RJX
NEEDS TO BE DEVELOPED THEY FEARED THE BRITISH MIGHT FIND A WAY TO GET OUT
OF THE ARRANGEMENT

UNDER THE PLAN FIRST AGREED UPON LAST SEPTEMBER AND REINFORCED IN A CONTRACT
SIGNED IN JANUARY THE JOINT VENTURE WOULD HAVE RECEIVED 190 MILLION IN
CASH FROM TAIWAN PLUS AN EQUIVALENT AMOUNT IN THE FORM OF EXISTING PLANT AND
EQUIPMENT FROM BRITISH AEROSPACE THE TWO SIDES WOULD THEN HAVE INJECTED
400 MILLION OF CAPITAL APIECE INTO A LEASING COMPANY TO BE OWNED BY THE
VENTURE AVRO INTERNATIONAL AEROSPACE LTD

BUT THE TAIWANESE GOVERNMENT BANK DESIGNATED TO RAISE THE 400 MILLION FOR
TAIWAN AEROSPACE CHIAO TUNG BANK BALKED AT THE SIZE OF THE LOAN CHIAO
TUNG WORRIED THAT AVRO'S FOURENGINE PLANE WOULD BE A DIFFICULT SELL IN THE
CURRENT AIRLINE SLUMP AND THAT A MARKETING PLAN BASED ALMOST SOLELY ON
LEASING COULD BRING HEAVY LOSSES

UNDER THE NEW PLAN EACH SIDE WOULD BE CALLED UPON TO PAY IN ONLY 200
MILLION ON TOP OF THEIR INITIAL COMMITMENTS TO AVRO ALTHOUGH THE
ANNOUNCEMENT OF THE LATEST FINANCING PLAN FRIDAY DIDN'T STATE THE PURPOSE OF
THE 400 MILLION CAPITAL INFUSION AN INDIVIDUAL CLOSE TO THE NEGOTIATIONS
SAID THE MONEY WOULD BE USED TO FUND THE LEASING COMPANY THE INDIVIDUAL
SAID AVRO EVENTUALLY WOULD SEEK TO RAISE THE REMAINING 400 MILLION FOR THE
LEASING COMPANY BY TURNING TO FOREIGN BANKS

THAT STRATEGY COULD PROVE DIFFICULT THIS LEASING COMPANY WILL HAVE ONLY
ONE PRODUCT TO LEASE AN ANALYST SAID THAT'S A PRODUCT THAT HAS A MIXED
RECORD THEREFORE WHETHER A DEBTTOEQUITY RATIO OF 1 TO 1 IS ENOUGH FOR
THE BANKS TO WRITE A BLANK CHECK IS QUESTIONABLE I KEEP MY FINGERS
CROSSED 9308300139 930830 INTERNATIONAL SOUTH KOREA INDUSTRIAL OUTPUT

SEOUL SOUTH KOREA SOUTH KOREA'S INDUSTRIAL OUTPUT ROSE 22 IN JULY FROM
A YEAR AGO AFFECTED BY A MONTHLONG LABOR DISPUTE AT THE NATION'S SECOND
LARGEST BUSINESS CONCERN HYUNDAI GROUP THE KOREA STATISTICAL OFFICE SAID

IN A PRELIMINARY REPORT THE OFFICE SAID THAT THE INDUSTRIAL OUTPUT MARKED A
12 DECLINE IN JULY FROM JUNE THE FOURTH MONTHLY DECLINE IN THE FIRST
SEVEN MONTHS OF THIS YEAR SUGGESTING A CONTINUED STAGNATION OF THE ECONOMY
9308300138 930830 WHO'S NEWS DISNEY'S PATERNO TO QUIT AS HEAD OF
RECORD DIVISION

BURBANK CALIF WALT DISNEY CO SAID PETER PATERNO PRESIDENT OF ITS
HOLLYWOOD RECORDS LABEL WILL LEAVE THE COMPANY WHEN HIS CONTRACT EXPIRES IN
NOVEMBER

MR PATERNO LAUNCHED HOLLYWOOD RECORDS DISNEY'S RECORD DIVISION GEARED TO A
MAINSTREAM AUDIENCE IN JANUARY 1990 HE WEATHERED SOME TOUGH TIMES AT
DISNEY COMPLAINING IN A HIGHLY PUBLICIZED INTERNAL MEMO ABOUT INTERFERENCE
FROM CORPORATE FINANCE PEOPLE AND DISAGREEMENTS WITH DISNEY SENIOR
MANAGEMENT ABOUT THE DIRECTION OF THE LABEL

A COMPANY STATEMENT SAID MR PATERNO HASN'T ANNOUNCED HIS FUTURE PLANS
CALLS TO MR PATERNO'S OFFICE WERE REFERRED TO THE COMPANY'S MEDIA RELATIONS
OFFICE

DISNEY DIDN'T ANNOUNCE A SUCCESSOR IT SAID WES HEIN EXECUTIVE VICE
PRESIDENT AT THE LABEL WILL BE THE EXECUTIVE IN CHARGE OF HOLLYWOOD RECORDS
IN THE INTERIM

IN A STATEMENT MICHAEL EISNER DISNEY CHAIRMAN SAID WHILE IT IS
CUSTOMARY TO SAY NICE THINGS AT A TIME LIKE THIS  I WANT TO DECLARE MY
GENUINELY DEEP APPRECIATION TO PETER FOR THE EXCELLENT JOB HE HAS DONE IN
STARTING UP OUR RECORD LABEL HE ADDED PETER  POURED TREMENDOUS
ENERGY INTO CREATING AN IMPORTANT NEW ENTERTAINMENT UNIT FOR US
9308300136 930830 WHO'S NEWS NEWS CORP

NEWS CORP NEW YORK RICHARD R HAWKES 49 YEARS OLD WAS NAMED A VICE
PRESIDENT OF THE NEWS AMERICA PUBLISHING UNIT OF THIS PUBLISHING AND
BROADCASTING COMPANY MR HAWKES PREVIOUSLY AN EXECUTIVE VICE PRESIDENT OF
MAGAZINE PUBLISHER KIII COMMUNICATIONS CORP WILL HELP IDENTIFY POTENTIAL
NEW BUSINESS OPPORTUNITIES 9308300135 930830 MEDIATION PROCEDURE FINDS
FEW BELIEVERS IN SECURITIES CASES  NASD ENCOURAGES INVESTORS 
BROKERS TO TRY THE PROCESS DUE TO ARBITRATION BACKLOG  BY DAVE
PETTIT SPECIAL TO THE WALL STREET JOURNAL

NEW YORK WHY ARE BROKERS SO OBSTINATE

GENERALLY SPEAKING PEOPLE ARE ABLE TO SETTLE BUSINESS DISPUTES OUTSIDE OF
COURT OR ARBITRATION AS MUCH AS 85 OF THE TIME WITH THE HELP OF A
MEDIATOR

BUT DISPUTES IN THE SECURITIES BUSINESS ARE SETTLED THROUGH NEGOTIATION ONLY
ABOUT 50 TO 55 OF THE TIME ACCORDING TO DEBORAH MASUCCI HEAD OF
ARBITRATION AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS

MS MASUCCI SAID THE NASD THE NATION'S LEADING SPONSOR OF ARBITRATION
FORUMS HAS TRIED TO ENCOURAGE BROKERAGE FIRMS AND INVESTORS TO SETTLE THEIR
SCORES THROUGH MEDIATION BUT SUCCESS HAS BEEN LIMITED

ARBITRATORS LIKE JUDGES AND JURIES HEAR COMPLAINTS AND RENDER DECISIONS
MEDIATORS ON THE OTHER HAND HELP OPPOSING SIDES SETTLE DISAGREEMENTS AMONG
THEMSELVES MEDIATORS HAVE NO DECISIONMAKING POWER

THERE IS RESISTANCE ON BOTH SIDES OF DISPUTES TO UTILIZE THIS PROCESS MS
MASUCCI SAID

THAT'S UNFORTUNATE OBSERVERS SAY BECAUSE THE NASD ARBITRATION DEPARTMENT
HAS BEEN CHOKED WITH CASES THIS YEAR ITS TOTAL CASELOAD FOR 1993 IS
EXPECTED TO RISE 18 TO 5200

THE INCREASE FUELED BY A JUMP IN ACTIVITY AMONG INDIVIDUAL INVESTORS AND A
RISE IN CLAIMS STEMMING FROM LIMITED PARTNERSHIP INVESTMENTS IN THE 1980S
IS PUTTING PRESSURE ON THE THE SYSTEM MS MASUCCI SAID IT'S TAKING LONGER
THIS YEAR TO SETTLE ARBITRATION CLAIMS

MOST SECURITIESRELATED DISPUTES ARE HEARD BY ARBITRATION PANELS RATHER THAN
BY COURT JURIES MANY INVESTORS ARE PROHIBITED BY THEIR BROKERAGE ACCOUNT
AGREEMENTS FROM PURSUING LAWSUITS AND MOST USE ALTERNATIVES SUCH AS
ARBITRATION

AS FOR BROKERS BEING UNYIELDING I DON'T THINK THEY ARE MUCH MORE OBSTINATE
THAN ANYONE ELSE SAID WILLIAM ZOLBERT A DEARBORN MICH ATTORNEY HE LED
A RECENT AMERICAN BAR ASSOCIATION PROGRAM DESIGNED TO BOOST THE SECURITIES
INDUSTRY'S INTEREST IN MEDIATION

OBSERVERS SAY MUCH OF THE RELUCTANCE TO MEDIATE SECURITIES MATTERS STEMS
FROM A LACK OF EXPERIENCE IN THE AREA AMONG LAWYERS FOR BROKERATE FIRMS AND
INVESTORS

FRANCIS O SPALDING A SAN FRANCISCO ARBITRATOR AND MEDIATOR SUGGESTED THAT
IN THE FUTURE THE NASD SHOULD CONSIDER OTHER INCENTIVES TO GET CASES OUT OF
ARBITRATION AND INTO MEDIATION INCLUDING AN INHOUSE MEDIATION OPERATION
MR SPALDING HEADS AN NASD ARBITRATION COMMITTEE

THE NASD WHICH SENDS REQUESTS FOR MEDIATION TO OUTSIDE ORGANIZATIONS SAID
IT IS CONCENTRATING ON IMPROVING TRAINING FOR ITS ARBITRATORS A MOVE IN
JANUARY REQUIRING ARBITRATORS TO TAKE PART IN AN EDUCATIONAL PROGRAM HAS
LEFT MORE THAN HALF OF THE GROUP'S OLD POOL OF 6600 ARBITRATORS UNQUALIFIED
TO HEAR CASES 9308300134 930830 ECONOMY BANKS EASING TERMS ON LOANS
 FED SURVEY SAYS  AT THE SAME TIME FIRMS AND HOUSEHOLDS GROW 
MORE WILLING TO BORROW  BY DAVID WESSEL STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON A NEW FEDERAL RESERVE SURVEY FOUND GROWING NUMBERS OF BANKERS
WILLING TO MAKE BUSINESS AND PERSONAL LOANS JUST AS IMPORTANT IT FOUND
BUSINESSES AND HOUSEHOLDS INCREASINGLY WILLING TO BORROW

THE SURVEY OF SENIOR LENDING OFFICERS AT 60 BANKS PROVIDED A FURTHER
SUGGESTION THAT THE CREDIT CRUNCH THAT HAS HOBBLED THE ECONOMY FOR THE PAST
FEW YEARS IS FINALLY EASING AND THAT BORROWERS AT LONG LAST ARE TAKING
ADVANTAGE OF THIS

DOMESTIC BANKS SURVEYED EARLIER THIS MONTH REPORTED WHAT THE FED DESCRIBED
AS A FAIRLY SIGNIFICANT SHIFT TOWARD EASIER LENDING STANDARDS AND TERMS
FOR COMMERCIAL AND INDUSTRIAL LOANS THEY HAVEN'T ALTERED THEIR STANCE
TOWARD REAL ESTATE LOANS THOUGH

OF THE BANKS SURVEYED 17 SAID THEY HAVE EASED STANDARDS FOR BUSINESS LOANS
FOR LARGE FIRMS IN THE PAST THREE MONTHS SOME 22 SAID THEY HAVE EASED
STANDARDS FOR MIDDLEMARKET FIRMS AND 12 SAID THEY HAVE EASED FOR SMALL
BUSINESSES THE REST OF THE BANKS HADN'T CHANGED THEIR POLICIES ONE WAY OR
THE OTHER NONE OF THE 60 DOMESTIC BANKS SURVEYED REPORTED TOUGHER
STANDARDS

EVEN LARGER FRACTIONS OF RESPONDENTS REPORTED HAVING EASED SOME LENDING
TERMS ESPECIALLY PRICE TERMS OF COMMERCIAL AND INDUSTRIAL LOANS AND LINES
OF CREDIT THE FED SAID NEARLY 40 OF THE BANKS SAID THEY HAVE REDUCED THE
IMPORTANT MARGIN BETWEEN INTEREST RATES CHARGED LARGE AND MEDIUMSIZE
BORROWERS AND VARIOUS BASE INTEREST RATES IN THE PAST THREE MONTHS AND 20
SAID THEY HAVE REDUCED THE MARGINS OR SPREADS FOR SMALL BUSINESSES

ABOUT A THIRD OF THE BANKS SURVEYED SAID THEY ARE SOMEWHAT MORE WILLING TO
MAKE GENERALPURPOSE LOANS TO INDIVIDUALS INCLUDING HOMEEQUITY LOANS THAN
THEY WERE THREE MONTHS AGO

THE BANKERS ALSO REPORTED THAT CREDIT DEMAND FROM BUSINESSES AND CONSUMERS
SEEMS TO BE STRENGTHENING ROUGHLY A QUARTER OF THE BANKERS SAID
BUSINESSLOAN DEMAND IS MODERATELY STRONGER THAN IT WAS THREE MONTHS AGO
BECAUSE BUSINESSES' INVENTORYFINANCING NEEDS HAVE INCREASED OR THEY ARE
STEPPING UP INVESTMENT IN PLANT AND EQUIPMENT HALF THE BANKERS SAID DEMAND
FOR RESIDENTIAL MORTGAGES IS UP AND ABOUT 30 SAID DEMAND FOR
CONSUMERINSTALLMENT LOANS IS UP

STILL AT LEAST SOME BANKS SAY THEY HAVEN'T MADE MORE LOANS AS THE ECONOMY
HAS RECOVERED BECAUSE LOAN DEMAND REMAINS SLUGGISH ABOUT TWOTHIRDS OF THE
BANKS THAT REPORTED FAIRLY COMFORTABLE OR VERY COMFORTABLE BALANCE
SHEETS TOLD THE FED THAT DESPITE THEIR FINANCIAL STRENGTH THEY HAVEN'T
ADOPTED A MORE AGGRESSIVE LENDING STANCE THE PRIMARY REASON THE BANKERS
SAID IS THAT DEMAND FOR LOANS REMAINS SO WEAK THAT BANKS CAN INCREASE
LENDING ONLY BY MAKING LOANS THAT THEY DEEM TOO RISKY

THE FED JOINED THE CLINTON ADMINISTRATION EARLIER THIS YEAR IN AN ATTEMPT TO
STREAMLINE VARIOUS REGULATORY PROCEDURES TO ENCOURAGE BANKS TO LEND MORE TO
SMALLAND MEDIUMSIZED BUSINESSES THE FED SURVEY FOUND THAT THE PROGRAM HAS
NOT HAD A SUBSTANTIAL EFFECT  ALTHOUGH MANY RESPONDENTS EXPECT IT TO DO
SO IN THE FUTURE ONLY A FIFTH OF THE BANKS FOR INSTANCE SAID THEY WERE
TAKING ADVANTAGE OF AN OPTION TO CUT PAPERWORK ON LOANS TO SMALL AND MIDSIZE
BUSINESSES AND FARMS AND MOST OF THOSE SAID THEY HADN'T YET MADE ANY LOANS
UNDER THE PROGRAM

THE DOMESTIC BANKS SURVEYED HOLD ABOUT A THIRD OF ALL THE DOMESTICALLY OWNED
BANKING ASSETS IN THE US FOREIGN BANKS REPORTED LITTLE CHANGE IN LENDING
STANDARDS OR LOAN DEMAND 9308300133 930830 CONSUMER CONFIDENCE ROSE IN
AUGUST BUT JUST SLIGHTLY

WASHINGTON CONSUMER CONFIDENCE SEEMS TO HAVE PICKED UP A BIT IN AUGUST
SUGGESTING A REVERSAL OF THE DEEP MALAISE THAT SET IN ON AMERICANS AT THE
START OF THE YEAR

THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE INDEX ROSE TO 773 IN
AUGUST FROM 77 IN JULY ACCORDING TO MARKET SOURCES WHO HAVE SEEN THE
REPORT IT WAS THE THIRD RISE IN A ROW AFTER SEVERAL MONTHS OF DISHEARTENING
DECLINES THE INDEX IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS AND ISN'T
DIRECTLY DISTRIBUTED TO THE NEWS MEDIA

CONSUMER EXPECTATIONS ALSO ROSE DURING THE MONTH WHILE THERE WAS A DECLINE
IN A READING ON CONSUMER ATTITUDES TO CURRENT CONDITIONS 9308300132
930830 COMMODITIES FARMERS GIRD THEMSELVES FOR PROSPECT OF FROST THAT
COULD INFLICT MAJOR DAMAGE ON CORN CROP  BY JEFFREY TAYLOR STAFF
REPORTER OF THE WALL STREET JOURNAL

CHICAGO ACROSS THE CORN BELT AND AT THE CHICAGO BOARD OF TRADE FARMERS
AND TRADERS ARE GIRDING THEMSELVES FOR THE PROSPECT OF FROST THAT
POTENTIALLY COULD INFLICT MAJOR DAMAGE ON A CROP STUNTED BY TOO MUCH RAIN

PRICES INCHED HIGHER AT THE CBOT LAST WEEK AS TRADERS TOOK STOCK OF THE
IMMATURE CROP IN WESTERN AND NORTHERN CORN BELT STATES SUCH AS IOWA
MINNESOTA AND SOUTH DAKOTA AND THIS WEEK ANY INDICATION OF COLD WEATHER
MOVING INTO CANADA AND THE NORTHERN PLAINS COULD PUSH PRICES HIGHER STILL

IF WE GOT A FROST IN MID OR LATE SEPTEMBER IT WOULD JUST KILL US SAYS
WES ROCK WHO FARMS 750 ACRES OF CORN AND SOYBEANS IN SCOTT COUNTY IOWA
WE'RE BANKING ON GETTING TWO GOOD GROWING WEEKS IN OCTOBER THAT'S WHAT
WE'LL NEED BEFORE OUR CROP'S OUT OF HARM'S WAY

IN MR ROCK'S EASTERNIOWA REGION OCT 10 IS THE USUAL DATE FOR THE FIRST
FROST OF FALL THIS YEAR BECAUSE OF HEAVY RAINS CROPS ARE BEHIND SCHEDULE
IN THE REGION AND IN AREAS FARTHER NORTH THEIR LATE DEVELOPMENT MAKES THEM
ESPECIALLY VULNERABLE TO FROST

IN AN ARTICLE LAST WEEK BARRON'S WEEKLY BUSINESS NEWSPAPER DREW PARALLELS
BETWEEN THE ERUPTION TWO YEARS AGO OF A VOLCANO IN THE PHILIPPINES AND THIS
SPRING'S DRENCHING RAINS IT SUGGESTED THAT THE CORN BELT BECAUSE OF THE
HUGE QUANTITIES OF AEROSOL THE VOLCANO INJECTED INTO THE STRATOSPHERE MIGHT
BE DUE FOR AN EARLY KILLING FROST THIS YEAR

CBOT TRADERS PLACED SOME CREDENCE IN THIS THEORY ANALYSTS SAID BIDDING
CORN AND SOYBEAN FUTURES PRICES HIGHER ON THE DAY THE ARTICLE APPEARED AND
ON FRIDAY SOYBEANS FOR NOVEMBER DELIVERY ROSE 11 CENTS TO 673 A BUSHEL
WHILE DECEMBER CORN CLIMBED 225 CENTS TO 24125 A BUSHEL REFLECTING
MOUNTING FROST FEARS

YET NOT EVERYONE IS SOLD ON THE FROST SCENARIO

THE ODDS OF A KILLING FROST ARE ABOUT 53 SAYS DANIEL W BASSE MARKET
RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO WE'VE HAD ONLY FIVE KILLING
FROSTS SINCE 1900 BY KILLING FROST I MEAN ONE WHERE THERE IS CONSIDERABLE
CROP DAMAGE

AN EARLY FROST IS CERTAINLY POSSIBLE MR BASSE SAYS BUT IT'S ALSO POSSIBLE
THAT FROST WILL HOLD OFF INTO OCTOBER AND ALLOW DELAYED CORN AND SOYBEAN
CROPS TIME TO MATURE HE NOTES THAT TEMPERATURES NEED TO FALL TO 29 DEGREES
FAHRENHEIT OR LOWER AND REMAIN THERE FOR AT LEAST THREE HOURS TO ACTUALLY
KILL A CROP

ONE FACTOR THAT MAKES THE MARKET PARTICULARLY SENSITIVE TO FROST THIS YEAR
ARE THE LOW PROJECTED STOCKS OF CORN AND SOYBEANS AT THE END OF THE CURRENT
CROP YEAR IN AUGUST 1994 THE US AGRICULTURE DEPARTMENT HAS FORECAST THESE
STOCKS TO BE HISTORICALLY LOW 190 MILLION BUSHELS IN SOYBEANS AND 141
BILLION BUSHELS OF CORN

FOR THIS REASON SUBSTANTIAL FROSTRELATED DAMAGE TO THE CROP COULD RESULT
IN A SERIOUS SUPPLY SHORTAGE OF US GRAINS WHICH WOULD PRESSURE GRAIN
FUTURES PRICES SHARPLY HIGHER AT THE CBOT

ANOTHER FACTOR FEEDING FROST FEARS IS THE FACT THAT NORMAL FROST DATES ARE
EARLIER IN THE WESTERN CORN BELT WHERE THE CROP IS BEHIND SCHEDULE FROST
DATES ARE LATER IN THE EAST BUT THE CROP THERE IS IN BETTER SHAPE THAN
FARTHER WEST ANALYSTS SAY

MOST VULNERABLE OF ALL ARE FARMERS IN THE NORTHERN CORN BELT EVEN A NORMAL
FIRST FROST COULD HURT CROPS BADLY IN STATES SUCH AS MINNESOTA SAYS PETER
LEAVITT EXECUTIVE VICE PRESIDENT OF WEATHER SERVICES CORP BEDFORD MASS

ON FRIDAY NATIONAL WEATHER SERVICE MODELS SHOWED COLD ARCTIC AIR MOVING
INTO CANADA A RULE OF THUMB THAT MANY FARMERS USE TO DECIDE WHETHER THEY
NEED TO WORRY ABOUT FROST IS WHAT HAPPENS IN CANADA A KILLING FROST THERE
IS THOUGHT TO SHARPLY INCREASE THE PROBABILITY OF SIMILAR WEATHER HERE

WEATHER REPORTS ARE LIKELY TO DOMINATE THE CBOT'S GRAIN MARKET THIS WEEK
ANALYSTS SAY AS TRADERS LOOK FOR ADDITIONAL INDICATIONS OF SUCH A FROST
9308300131 930830 HEALTH NORPLANT'S MAKER DRAWS SHARP CRITICISM ON
PRICING OF LONGACTING CONTRACEPTIVE  BY ELYSE TANOUYE STAFF
REPORTER OF THE WALL STREET JOURNAL

CAROLYN WESTHOFF LOOKED FORWARD TO THE ARRIVAL OF THE LONGACTING
CONTRACEPTIVE NORPLANT AS THE FIRST GOOD NEWS FOR THE FAMILYPLANNING WORLD
IN YEARS

DR WESTHOFF WAS ONE OF NORPLANT'S EARLY ADVOCATES JUMPING AT THE CHANCE IN
1990 TO BE ONE OF THE FIRST DOCTORS TRAINED TO INSERT NORPLANT IN WOMEN'S
ARMS

THEN IN 1991 WYETHAYERST LABORATORIES LAUNCHED NORPLANT PACKAGED WITH AN
INSERTION KIT AT A PRICE OF 350 IN OTHER COUNTRIES NORPLANT WITHOUT THE
KIT COST CLINICS AS LITTLE AS 23 I WAS STUNNED SAYS DR WESTHOFF
MEDICAL DIRECTOR OF THE FAMILYPLANNING CLINIC AT COLUMBIAPRESBYTERIAN
MEDICAL CENTER IN NEW YORK CITY AFTER ALL THE STRESSES ON FAMILYPLANNING
BUDGETS OF THE LAST DECADE THIS SEEMED LIKE A BAD JOKE SHE ADDS

NORPLANT IS HAILED BY FAMILYPLANNING PRACTITIONERS AS A BREAKTHROUGH SIX
HORMONERELEASING RODS EACH ABOUT THE SIZE OF A MATCHSTICK ARE IMPLANTED
IN THE UPPER ARM AND EFFECTIVELY PREVENT PREGNANCIES FOR FIVE YEARS BUT
INSTEAD OF ACCOLADES FOR BRINGING THE PRODUCT TO AMERICAN WOMEN
WYETHAYERST A UNIT OF AMERICAN HOME PRODUCTS CORP HAS DRAWN STINGING
CRITICISM FOR ITS PRICING

NORPLANT IS AN EXAMPLE OF STUPID PRICING POLICIES THAT HAVE GIVEN THE DRUG
INDUSTRY A BAD IMAGE SAYS THOMAS C KRING A FAMILY PLANNING CONSULTANT
MR KRING IS CRITICAL OF NORPLANT'S PRICING EVEN THOUGH HE IS VICE CHAIRMAN
AND TREASURER OF THE NORPLANT FOUNDATION ESTABLISHED BY WYETHAYERST TO
DONATE THE DRUG TO INDIGENT PATIENTS IT'S WAY OVERPRICED COMPARED TO WHAT
IT GOES FOR ANYPLACE ELSE IN THE WORLD HE SAYS

WYETHAYERST DISPUTES THAT IT SAYS NORPLANT IS FAIRLY PRICED TO RECOVER THE
COSTS OF MARKETING DISTRIBUTION AND RESEARCH AND TO PROVIDE A FAIR PROFIT

THE COMPANY LICENSES NORPLANT FROM THE NONPROFIT POPULATION COUNCIL WHICH
DEVELOPED THE PRODUCT WITH 10 MILLION IN GRANTS FROM THE GOVERNMENT AND
PHILANTHROPIC AGENCIES WYETHAYERST HAD FIRST RIGHTS TO NORPLANT WHICH
CONTAINS THE COMPANY'S HORMONE LEVONORGESTREL AND HAD COMPLETE CONTROL
OVER PRICING A COUNCIL SPOKESWOMAN SAYS WYETHAYERST PAYS THE ORGANIZATION
A VERY SMALL ROYALTY THE SPOKESWOMAN SAYS WE WOULD BE JUST AS HAPPY
WITH THE SAME PERCENTAGE ROYALTY OF A LOWERPRICED PRODUCT

FAMILYPLANNING OFFICIALS WORKED HARD TO GET NORPLANT APPROVED IN THE US
SAYS JACQUELINE DARROCH FORREST OF THE ALAN GUTTMACHER INSTITUTE A NEW
YORKBASED WOMEN'S HEALTH RESEARCH CONCERN

IN RETURN FOR THEIR SUPPORT THE FAMILYPLANNING WORLD GOT A FINANCIAL
NIGHTMARE SAYS JAMES MCCARTHY DIRECTOR OF THE COLUMBIAPRESBYTERIAN UNIT
THAT RUNS THE HOSPITAL'S FAMILY PLANNING CLINIC SOON AFTER NEWS OF
NORPLANT'S LAUNCH HIT THE MEDIA IN 1991 THE CLINIC WAS DELUGED BY PATIENTS
EAGER TO GET IT BEFORE LONG THE CLINIC HAD A WAITING LIST OF 500 WOMEN
BUYING ENOUGH NORPLANT WOULD COST 175000 AND THE CLINIC'S YEARLY BUDGET
FOR ALL CONTRACEPTIVE SUPPLIES WAS JUST 20000

DRUG PRICING IS A MURKY AREA THE PHARMACEUTICAL INDUSTRY USUALLY BLAMES
HIGH DRUG PRICES ON RESEARCH AND DEVELOPMENT COSTS BUT THAT DOESN'T HOLD UP
FOR DRUGS LIKE NORPLANT THAT WERE DEVELOPED WITH PUBLIC FUNDS CRITICS SAY

THE PRICING OF NORPLANT IS ALSO PARTICULARLY SENSITIVE BECAUSE IT IS ONE OF
THE FEW ADVANCES IN WOMEN'S HEALTHCARE PRODUCTS IN YEARS ANOTHER RECENTLY
INTRODUCED CONTRACEPTIVE UPJOHN CO'S DEPOPROVERA IS ALSO PRICED MUCH
HIGHER IN THE US THAN IN OTHER COUNTRIES

YOU HAVE A SITUATION WHERE CLEARLY AMERICANS ARE BEING CHARGED MORE SAYS
REP RON WYDEN D ORE A CRITIC OF DRUG INDUSTRY PRICING WE HAVE A
CHANCE TO EXPOSE THESE KINDS OF PRICING PRACTICES AND CREATE A MORE
COMPETITIVE PRICE HE PLANS A HEARING THIS FALL ON NORPLANT'S PRICING

SOME CRITICS WORRY THAT NORPLANT IS A HARBINGER OF THINGS TO COME IN WOMEN'S
HEALTH PRODUCTS ARE WE GOING TO SEE RU486 COME INTO THIS COUNTRY AT A
PRICE THAT MAKES IT NO CHEAPER THAN GETTING A FIRST TRIMESTER ABORTION
ASKS MR KRING IT'S A TREND THAT SCARES ME TO DEATH THAT PEOPLE ARE
MAKING HUGE PROFITS IN WOMEN'S HEALTH CARE RU486 AN ABORTION PILL
DEVELOPED IN FRANCE IS EXPECTED TO BEGIN CLINICAL TESTS IN THE US THIS
YEAR

WYETHAYERST SAYS NORPLANT IS CHEAPER THAN FIVE YEARS' WORTH OF ORAL
CONTRACEPTIVES AND THAT MARKET RESEARCH INDICATED IT COULD CHARGE A HIGHER
PRICE WE THINK IT'S VERY FAIRLY PRICED SAYS MARC W DEITCH
WYETHAYERST'S MEDICAL DIRECTOR

BY ALL MEASURES NORPLANT HAS BEEN A RUNAWAY SUCCESS IN TWOANDAHALF
YEARS IT HAS BEEN INSERTED IN 780000 WOMEN IN THE US ANALYSTS EXPECT
NORPLANT REVENUE THIS YEAR TO REACH 150 MILLION ABOUT THE SAME AS LAST
YEAR AND FAR ABOVE ESTIMATES OF 25 MILLION A YEAR WHEN IT WAS LAUNCHED

NORPLANT'S SUCCESS SHOWS THAT ITS PRICE IS FAIR SAYS ROBERT ESSNER
WYETHAYERST'S PRESIDENT BUT REP WYDEN CONTENDS NORPLANT'S SALES REFLECT
THE PROTECTION FROM COMPETITION THAT PATENTED DRUGS AND TECHNOLOGIES ENJOY
ANYONE WHO WANTS A FIVEYEAR CONTRACEPTIVE HAS TO BUY NORPLANT HE SAYS

PRICE WOULDN'T BE SUCH AN ISSUE IF NORPLANT WEREN'T CONSIDERED SO IMPORTANT
IT'S A WONDERFUL METHOD OF CONTRACEPTION SAYS MARK SALO EXECUTIVE
DIRECTOR OF PLANNED PARENTHOOD OF SAN DIEGO AND RIVERSIDE COUNTIES IN
CALIFORNIA NORPLANT CAN MAKE AN ENORMOUS DIFFERENCE IN THE LIVES OF WOMEN
AT HIGH RISK FOR UNWANTED PREGNANCIES HE SAYS

PRACTITIONERS WELCOME NORPLANT AS AN ALTERNATIVE FOR WOMEN WHO HAVE PROBLEMS
WITH OTHER METHODS EITHER FOR HEALTH REASONS SUCH AS HIGH BLOOD PRESSURE OR
SIMPLY BECAUSE THEY FORGET TO TAKE THEIR PILLS AFTER SEVEN PREGNANCIES IN
FOUR YEARS HELEN PARED OF NEW YORK CITY WENT TO THE COLUMBIAPRESBYTERIAN
CLINIC FOR A STERILIZATION PROCEDURE BUT AFTER UNDERGOING THE COUNSELING
SESSION SHE DECIDED TO TRY NORPLANT I LIKE IT SAYS THE 24YEAROLD
WOMAN GLANCING AT THE GAUZE BANDAGE WRAPPED AROUND HER UPPER ARM SHE SAYS
NOW I DON'T HAVE TO WORRY ABOUT PILLS

BUT PROVIDING NORPLANT HAS CAUSED FINANCIAL HARDSHIP FOR CLINICS ALL OF
THE INCOME FOR NORPLANT GOES RIGHT TO THE DRUG COMPANY SAYS MR SALO OF
PLANNED PARENTHOOD IN SAN DIEGO WE DON'T CHARGE A MARGIN ON IT WE LOSE
MONEY ON EACH PATIENT THAT WE SERVE BECAUSE MEDICAID DOESN'T REIMBURSE THE
FULL COST STAFF MEMBERS HAVE HAD TO FORGO RAISES AND PLANS FOR OUTREACH
PROGRAMS HAVE BEEN SHELVED AS A RESULT HE SAYS

WYETHAYERST COULD QUIET MOST OF THE FAMILYPLANNING COMMUNITY'S CRITICISM
BY DEEPLY DISCOUNTING NORPLANT AS THE COMPANY DOES FOR ORAL CONTRACEPTIVES
WYETHAYERST HAS REFUSED SAYING DISCOUNTS TO FAMILYPLANNING CLINICS WOULD
BE A DISINCENTIVE TO PRIVATE PHYSICIANS TO OFFER NORPLANT NOR WILL THE
COMPANY DISCLOSE THE COSTS TO ACCOUNT FOR THE 1500 DIFFERENCE BETWEEN THE
PRICE OF NORPLANT IN THE US AND ABROAD IT SAYS THE OFTQUOTED 23 IS THE
PRICE DEVELOPING COUNTRIES PAY A FINNISH FIRM FOR BULK PURCHASES OF THE
RODS WYETHAYERST WOULDN'T DISCLOSE ITS BULK COST EXCEPT TO SAY IT IS MUCH
HIGHER THAN 23

THE COMPANY SAYS ITS COSTS ARE FAR HIGHER THAN THE FAMILYPLANNING COMMUNITY
PERCEIVES AMONG OTHER EXPENSES WYETHAYERST SAYS TRAINING PHYSICIANS AND
NURSES ON THE INSERTION TECHNIQUE HAS COST 26 MILLION OVER THE LAST SEVERAL
YEARS

WYETHAYERST SAYS NORPLANT PROFITS ARE BEING PLOWED INTO RESEARCH FOR NEW
VERSIONS THAT REQUIRE FEWER RODS AND OTHER WOMEN'S HEALTH PRODUCTS THE
FUTURE OF CONTRACEPTIVE RESEARCH WAS CONSIDERED TO BE VERY BLEAK A COUPLE OF
YEARS AGO DR DEITCH SAYS YOU CAN'T DO RESEARCH WITHOUT THE DOLLARS TO
DO RESEARCH 9308300130 930830 TECHNOLOGY FDA TO RECALL SOME WIRES 
USED WITH INFANT MONITORS

CHICAGO THE FOOD AND DRUG ADMINISTRATION SAID IT WILL REQUIRE THE RECALL
OF CERTAIN ELECTRIC WIRES USED WITH INFANT BREATHING MONITORS FOLLOWING THE
ACCIDENTAL ELECTROCUTION OF A BABY LAST WEEK

FDA COMMISSIONER DAVID KESSLER SAID THE FEDERAL AGENCY HAS WARNED VARIOUS
MANUFACTURERS OF BREATHING MONITORS THAT THEY WERE RESPONSIBLE FOR
PREVENTING FURTHER USE OF THE ELECTRICAL LEADS OR WIRES IN QUESTION A
12DAYOLD INFANT DIED AT A CHICAGO SUBURBAN HOSPITAL AFTER A NURSE
APPARENTLY ATTACHED THE LEAD TO THE BOY AND THEN TO AN ELECTRIC POWER CABLE
INSTEAD OF TO THE BABY MONITOR

THE LEAD INVOLVED IN THE DEATH AN OLDER DEVICE NO LONGER BEING
MANUFACTURED BY BABYMONITOR COMPANIES HAD TWO PRONGS THAT WERE SUPPOSED
TO PLUG INTO THE MONITOR BUT COULD ALSO FIT INTO A POWER SOURCE NEWER LEADS
HAVE RECESSED PRONGS PREVENTING SUCH AN ACCIDENT

A SPOKESWOMAN FOR EHS CHRIST HOSPITAL OAK LAWN ILL WHERE THE DEATH
OCCURRED SAID THE BABY MONITOR INVOLVED WAS MADE BY COROMETRICS MEDICAL
SYSTEMS INC OF WALLINGFORD CONN WHOSE OFFICIALS COULDN'T BE REACHED FOR
COMMENT 9308300129 930830 MARKETING & MEDIA WALL STREET JOURNAL LEAVES
 NEWSPAPER INDUSTRY GROUP

THE WALL STREET JOURNAL RESIGNED FROM THE NEWSPAPER ASSOCIATION OF AMERICA
BECAUSE IT SAID THE TOP NEWSPAPERINDUSTRY TRADE ASSOCIATION DOESN'T MEET
THE PAPER'S NEEDS

THE JOURNAL PUBLISHED BY DOW JONES & CO HAD TOLD THE NAA IT PLANNED TO
LEAVE THE GROUP A YEAR AGO WHEN THE OLD AMERICAN NEWSPAPER PUBLISHERS
ASSOCIATION THE NEWSPAPER ADVERTISING BUREAU AND SEVERAL SMALLER INDUSTRY
TRADE GROUPS MERGED TO FORM THE NAA A JOURNAL SPOKESMAN SAID THE PAPER
RESIGNED FROM THE GROUP BECAUSE ITS MISSION OF REPRESENTING METROPOLITAN
AND SMALLER GENERALINTEREST NEWSPAPERS PROVIDES LESS BENEFIT TO THE
JOURNAL WHICH IS A NATIONAL PUBLICATION SPECIALIZING IN NEWS OF BUSINESS
AND FINANCE

BUT NAA SPOKESWOMAN NANCY JONES COUNTERED THAT THE JOURNAL LEFT BECAUSE IT
SAW A SIGNIFICANT DUES INCREASE MS JONES SAID THE NAA IS PHASING IN A NEW
DUES STRUCTURE PEGGED TO CIRCULATION SIZE THE NAA WOULDN'T COMMENT ON WHAT
THE JOURNAL WOULD PAY BUT MS JONES SAID UNDER THE OLD ANPA DUES STRUCTURE
THE JOURNAL WAS ONE OF ABOUT A DOZEN NEWSPAPERS AT THE TOP END OF THE DUES
THAT CAPPED AT AROUND 100000 THE JOURNAL WOULDN'T COMMENT ABOUT DUES
9308300128 930830 POLITICS & POLICY HOUSE DEMOCRATIC WHIP ESCALATES
ATTACK ON NAFTA

WASHINGTON DEMOCRATIC WHIP DAVID BONIOR THE NO 3 DEMOCRAT IN THE HOUSE
ESCALATED HIS LONGSTANDING ATTACK ON THE NORTH AMERICAN FREE TRADE
AGREEMENT SAYING HE WOULD USE ALL THE STAFF AND RESOURCES AVAILABLE TO HIM
TO DEFEAT THE TRADE PACT

MR BONIOR OF MICHIGAN HAS LONG ARGUED THAT NAFTA WILL PROMPT JOB LOSS IN
THE US AND THAT IT SHOULD BE SHELVED SO THE CLINTON ADMINISTRATION CAN
FOCUS ON HEALTHCARE REFORM HIS LATEST COMMENTS SET UP A PUBLIC DIVISION
BETWEEN PRESIDENT CLINTON AND AN IMPORTANT MEMBER OF THE DEMOCRATIC HOUSE
LEADERSHIP AS WHIP MR BONIOR COUNTS AND ROUNDS UP VOTES FOR THE
DEMOCRATIC SIDE

ON NBC NEWS' MEET THE PRESS YESTERDAY MR BONIOR SAID HE IS WORKING WITH
OTHER MEMBERS IN THE WHIP OFFICE TO DEFEAT THE TRADE AGREEMENT WHEN IT'S
EXPECTED TO COME BEFORE A CONGRESSIONAL VOTE THIS FALL HE ACKNOWLEDGED
HOUSE DEMOCRATS ARE DIVIDED IN TERMS OF WHERE WE GO ON THIS BUT IT WILL BE
A FAIR FIGHT AND RESOURCES WILL BE EQUALLY DISTRIBUTED

REP ROBERT MATSUI D CALIF A SUPPORTER OF THE TRADE ACCORD INDICATED
MR BONIOR WOULDN'T BE USING THE WHIP'S OFFICE ITSELF TO DEFEAT NAFTA
HE'S GOING TO BE USING HIS OWN OFFICE HIS OWN RESOURCES MR MATSUI SAID
  I'LL BE USING MY STAFF AND SO THERE'S NOTHING REALLY WRONG WITH IT
BECAUSE OF MR BONIOR'S OPPOSITION TO NAFTA MR MATSUI WILL TAKE OVER THE
RESPONSIBILITY OF ROUNDING UP VOTES FOR NAFTA 9308300127 930830 FINANCING
BUSINESS CELLULAR INC

CELLULAR INC ENGLEWOOD COLO SAID ITS 100 MILLION ISSUE OF SENIOR
SUBORDINATED DISCOUNT NOTES DUE SEPT 1 2003 WAS PRICED AT 56609 TO YIELD
1175 THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED CAA BY
MOODY'S INVESTORS SERVICE INC AND TRIPLEC BY STANDARD & POOR'S CORP THE
ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP THE
CELLULAR PHONE SYSTEMS OPERATOR SAID 9308300126 930830 INTERNATIONAL 
VOLKSWAGEN CASTS DOUBT ON METHODS USED IN SEARCH BY GERMAN PROSECUTOR 
 BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL

VOLKSWAGEN AG DEMANDED AN EXPLANATION FROM GERMAN PROSECUTORS FOR WHAT IT
SAYS WERE UNUSUAL AND POSSIBLY IMPROPER ACTIONS SURROUNDING LAST WEEK'S
POLICE SEARCH OF COMPANY OFFICES AND TOP MANAGERS' HOMES

COMPLAINING OF INFORMATION LEAKS FROM THE PROSECUTORS OFFICE AND APPARENT
TIPOFFS GIVEN TO THE MEDIA VW APPEARED TO TRY TO CAST DOUBT ON THE
INTEGRITY OF THE PROSECUTOR'S METHODS

ON THE MORNING OF THE SEARCH TELEVISION CREWS WERE PROMPTLY ON THE SCENE
AND THE ONE FROM TELEVISION NETWORK ZDF WAS ABLE TO DRIVE THROUGH VW'S GATES
BY SLIPPING INTO THE MIDDLE OF THE COLUMN OF ENTERING POLICE CARS VW SAID

VW ALSO CONFIRMED IT HAD BEEN CONTACTED EARLY LAST WEEK BY TWO MEN FROM
FRANKFURT'S REDLIGHT DISTRICT DEMANDING 500000 MARKS 300250 IN
EXCHANGE FOR HOT INFORMATION ABOUT THE CONTINUING INVESTIGATION

WE FIND THESE COINCIDENCES VERY SURPRISING AND RATHER TOO CONSPICUOUS
SAID VW SPOKESMAN OTTO FERDINAND WACHS VW EXPECTS EXPLANATIONS FROM THE
PROSECUTOR AND POLICE AND HAS ALSO WARNED ZDF AGAINST ENTERING VW GROUNDS
AGAIN WITHOUT PERMISSION MR WACHS SAID

THE PROSECUTORS OFFICE DENIED ANY INCORRECT CONDUCT AND DISMISSED
SUGGESTIONS IT TIPPED THE MEDIA OFF TO THE SEARCH

MEANWHILE PROSECUTORS ARE PORING THROUGH CARTONS OF DOCUMENTS NUMEROUS
COMPUTER DISKETTES AND 20 TO 30 PERSONAL COMPUTERS AND LAPTOPS THAT THE
SEARCH YIELDED THIS COLLECTION NOW FORMS THE NEWEST FRONT OF INVESTIGATION
INTO THE ALLEGED INDUSTRIAL ESPIONAGE CASE SURROUNDING FORMER GENERAL MOTORS
CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA MR LOPEZ IS ACCUSED
OF HAVING TAKEN PROPRIETARY INFORMATION FROM GM AND ITS GERMAN SUBSIDIARY
ADAM OPEL AG WHEN HE DEFECTED TO COMPETITOR VW IN MARCH MR LOPEZ DENIES
ANY IMPROPRIETY

VW MAINTAINS THAT EVEN IF ANY GM DOCUMENTS WERE PROVED TO HAVE BEEN
IMPROPERLY TAKEN BY MR LOPEZ AND HIS COLLEAGUES SUCH DOCUMENTS WERE NEVER
AT THE DISPOSAL OF VW AS A COMPANY HOWEVER THE INDICATION THAT THE
PROSECUTORS OFFICE BELIEVES VW COMPUTERS COULD HAVE RELEVANT INFORMATION FOR
THE PROBE COULD UNDERMINE VW'S LINE OF DEFENSE RECENT GERMAN NEWS REPORTS
ALLEGED THAT MR LOPEZ SUPERVISED A COORDINATED ENTRY OF DATA ONTO VW
COMPUTERS VW HAS REFUSED TO COMMENT ON THE REPORTS OR TO ISSUE AN OUTRIGHT
DENIAL OF THE ALLEGATIONS

GERMAN AUTHORITIES HAVE PROMISED TO SHARE ANY RELEVANT INFORMATION WITH US
LAW ENFORCERS WHO ARE ALSO PROBING THE ALLEGATIONS OF CORPORATE SPYING

A VW SPOKESMAN ALSO REFUSED TO COMMENT ON SPECULATION CONCERNING THE
POSSIBLE OUSTER OF MR LOPEZ AT THIS COMING FRIDAY'S MEETING OF THE
COMPANY'S SUPERVISORY BOARD AT ALL REGULARLY SCHEDULED SUPERVISORY BOARD
MEETINGS THE MANAGEMENT BOARD IS CALLED UPON TO REPORT ON THE COMPANY'S
CURRENT SITUATION THE SPOKESMAN SAID

FRIDAY VW SHARES WERE WEIGHED DOWN BY NEWS OF THE EXTENT OF THE
PROSECUTOR'S HARVEST THE STOCK SLIPPED 450 MARKS TO FINISH AT 36280 MARKS
IN FRANKFURT 9308300125 930830 FOREIGN EXCHANGE DOLLAR FINISHES WEEK
LOWER VS MARK OFFERING BEARS MEASURE OF VINDICATION  BY DIANE
DIMOND SPECIAL TO THE WALL STREET JOURNAL

NEW YORK A HANDFUL OF ANALYSTS HAVE ARGUED FOR MONTHS THAT THE DOLLAR IS
HEADED LOWER AGAINST THE GERMAN MARK LAST WEEK'S TRADING OFFERED THESE
DOLLAR BEARS A MEASURE OF VINDICATION

FRESH EVIDENCE OF GERMANY'S CAUTION IN LOWERING INTEREST RATES COMBINED WITH
MORE BAD NEWS ABOUT THE US ECONOMY TO LEAVE THE DOLLAR SLIGHTLY WEAKER AT
THE END OF THE WEEK THAN AT THE BEGINNING BY FRIDAY EVEN SOME DOLLAR
ENTHUSIASTS HAD BECOME MORE CAUTIOUS

LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 16644 MARKS DOWN FROM 16755
MARKS AT THE END OF THE PREVIOUS WEEK THE DOLLAR ALSO STOOD AT 10375
JAPANESE YEN DOWN FROM 10435 YEN A WEEK EARLIER

ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10391 YEN AND AT
16655 MARKS

MANY PLAYERS DISAGREE WITH THE WEAKDOLLAR OUTLOOK THEY STILL EXPECT THE
DOLLAR TO END THE YEAR HIGHER AGAINST THE MARK AS THE US ECONOMY SLOWLY
RECOVERS AND THE GERMAN ECONOMY STAGNATES

THE GERMAN RECESSION IS NOT OVER EVEN THOUGH GERMAN POLICYMAKERS SAY IT
IS AND THAT WILL BE ABUNDANTLY CLEAR LATER THIS YEAR SAYS DAVID ROLLEY
SENIOR FINANCIAL ECONOMIST AT DRI/MCGRAW HILL INC HE EXPECTS THE DOLLAR TO
RISE TO 172174 MARKS BY YEAR END

THIS WEAK ECONOMIC OUTLOOK WILL FORCE GERMAN INTEREST RATES LOWER DOLLAR
BULLS MAINTAIN YOU CAN POSTPONE EUROPEAN INTEREST RATES BUT YOU CAN'T
STOP THEM FROM HAPPENING SAYS EARL JOHNSON FOREIGN EXCHANGE ADVISER AT
HARRIS TRUST & SAVINGS BANK IN CHICAGO WHO ENVISIONS THE DOLLAR AT 175
MARKS WITHIN TWO MONTHS

DOLLAR BEARS AGREE THAT GERMAN RATES WILL FALL BUT THEY CONTEND THAT THE
MODEST RATE CUTS IN STORE WON'T HURT THE MARK

INFLATION AND THE GROWTH IN MONEY SUPPLY STILL PRECLUDE THE LEAPSANDBOUNDS
EASING STYLE THAT MANY ANALYSTS PREDICTED EARLIER IN THE YEAR THEY SAY AND
THAT MEANS THAT GERMAN RATES WILL REMAIN FAR HIGHER THAN COMPARABLE US
RATES AT THE END OF THE YEAR

DESPITE THIS YEAR'S MONETARY EASING IN GERMANY OVERNIGHT MONEYMARKET RATES
ARE STILL ALMOST FOUR PERCENTAGE POINTS HIGHER THAN EQUIVALENT US RATES
NOTES CHESTER RUBEN SENIOR FOREIGN EXCHANGE TRADER AT CONTINENTAL BANK IN
CHICAGO THAT GAP MAKES SHORTTERM GERMAN INSTRUMENTS MORE LUCRATIVE

IT'S HARD TO PASS THAT UP MR RUBEN SAYS THE GAP MAY NARROW A SMALL
AMOUNT BUT NOT SIGNIFICANTLY ENOUGH TO MAKE IT WORTHWHILE TO HOLD DOLLARS
AND BE SHORT MARKS THE DOLLAR WILL SINK TO 150 MARKS BY YEAR END HE
PREDICTS

MOREOVER ARGUE SOME ANALYSTS DECLINING GERMAN RATES NEEDN'T AUTOMATICALLY
HURT THE MARK ON THE CONTRARY ARGUES LISA FINSTROM SENIOR CURRENCY
ANALYST AT SMITH BARNEY SHEARSON CONSERVATIVE EASING WILL REASSURE
BONDMARKET PLAYERS THAT THE CENTRAL BANK IS COMMITTED TO FIGHTING INFLATION
AS WELL AS REVIVING THE ECONOMY THAT WILL PULL LONGTERM GERMAN RATES
LOWER LOWER RATES SHOULD HELP SPUR THE ECONOMY SHE SAYS BELYING THE
CONVENTIONAL WISDOM THAT THE BUNDESBANK'S STRINGENCY ON RATES IS THE NEMESIS
OF GERMAN ECONOMIC RECOVERY SHE EXPECTS THE DOLLAR TO FALL TOWARD 160
MARKS BY YEAR END

JUST AS IMPORTANT FOR THE MARK SOME ANALYSTS ARGUE THE PROSPECT OF LOWER
RATES WILL ALSO HELP ATTRACT INTERNATIONAL INVESTMENT TO GERMAN BOND AND
STOCK MARKETS FUELING DEMAND FOR MARKS

THE PUBLIC IS BUYING EUROPE SAYS MR RUBEN OF CONTINENTAL BANK NOTING
THE RECENT FLOWS INTO MUTUAL FUNDS THAT INVEST IN EUROPEAN DEBT MARKETS
THERE'S NO CAPITAL FLOWING INTO THE US BECAUSE YIELDS ARE SO TERRIBLE

AND USBASED INVESTORS IN EUROPE WON'T BE HEDGING THEIR CURRENCY RISKS AS
AGGRESSIVELY AS THEY WERE AT THE BEGINNING OF THE YEAR CONTENDS ROBERT
STEIN CHIEF DEALER FOR PROPRIETARY TRADING AT BARCLAYS BANK

INSTITUTIONAL INVESTORS EXPECTED THE DOLLAR TO RISE SHARPLY THIS YEAR AS THE
US ECONOMY REBOUNDED AND EUROPEAN ECONOMIES SANK FURTHER INTO RECESSION
ACCORDINGLY THEY BOUGHT DOLLARS AGAINST MARKS

BUT THEIR EXPECTATIONS HAVEN'T PANNED OUT MR STEIN SAYS WE HAVE THE SAME
ECONOMIC SCENARIOS WE HAD EIGHT OR NINE MONTHS AGO HE SAYS THE INVESTORS
ARE ALREADY HEDGED THEY'RE NOT GOING TO DO ANY MORE MR STEIN'S
YEAREND CALL THE DOLLAR WILL TRADE BETWEEN 145 AND 150 MARKS

DOLLARSELLERS ARE ALSO ENCOURAGED BY THE LATEST ROUND OF WEAK US ECONOMIC
DATA

RETAIL SALES AND DURABLEGOODS FIGURES HAVE BEEN WEAK NOTES MS FINSTROM
ON THE DEMAND SIDE THINGS LOOK QUITE IFFY SHE SAYS AND INFLATION
REMAINS LOW PUSHING THE PROSPECT OF DOMESTIC RATE INCREASES INTO THE
DISTANCE

EVEN DOLLAR ENTHUSIASTS EXPECT WEAK INDICATORS TO HURT THE CURRENCY THIS
WEEK

THE UNEXPECTED DECLINE IN EXPORTS THAT APPEARED IN THE JUNE MERCHANDISE
TRADE REPORT WILL PROBABLY LEAD THE COMMERCE DEPARTMENT TO REVISE ITS
ESTIMATE OF SECONDQUARTER GROSS DOMESTIC PRODUCT DOWNWARD SAYS MR JOHNSON
OF HARRIS BANK THE REPORT IS DUE TUESDAY THAT WILL PROBABLY PUSH THE LONG
BOND YIELD DOWN TOWARD 6 WHICH OBVIOUSLY WILL NOT BE GOOD FOR THE DOLLAR
HE SAYS 9308300124 930830 BUSINESS BRIEF GENERAL MOTORS CORP 
ITALIAN CAR MAKER BUGATTI BUYS LOTUS SPORTS CAR UNI

GENERAL MOTORS CORP DETROIT SAID IT SOLD ITS GROUP LOTUS LUXURY SPORTS
CAR UNIT TO ITALIAN SPECIALTY CAR MAKER BUGATTI INTERNATIONAL THE PRICE
WASN'T DISCLOSED

UNDER THE AGREEMENT LOTUS AND BUGATTI WILL REMAIN INDEPENDENT COMPANIES
BUT WILL POOL RESOURCES FOR DEVELOPMENT AND MARKETING GM SAID IT WILL
CONTINUE TO PURCHASE FROM LOTUS ENGINEERING CONSULTING SERVICES

GM ACQUIRED LOTUS FOR 318 MILLION IN 1986 MAINLY TO ACQUIRE ENGINEERING
EXPERTISE FOR HIGHPERFORMANCE VEHICLES LOTUS SELLS ONLY ONE MODEL THE
TWOSEAT ESPRIT TURBO THAT IS BUILT IN HETHEL ENGLAND LOTUS SOLD ABOUT 150
CARS IN 1992 IN THE US ABOUT HALF OF WHAT IT SOLD IN 1988 ITS PEAK YEAR
BUT SLIGHTLY HIGHER THAN THE 120 SOLD IN 1986 9308300123 930830 WEIRTON
STEEL CORP STARTS CREDIT FACILITY

WEIRTON WVA WEIRTON STEEL CORP SAID IT INITIATED THROUGH ITS NEW
WEIRTON RECEIVABLE INC SUBSIDIARY A CREDIT FACILITY OF 85 MILLION BACKED
BY ITS ACCOUNTS RECEIVABLE

THE COMPANY SAID THE NEW THREEYEAR FACILITY RATED TRIPLEA BY STANDARD &
POOR'S CORP INCLUDES A LETTER OF CREDIT SUBFACILITY OF 25 MILLION AND
OPTIONS FOR ANNUAL RENEWALS

WEIRTON REPORTED A NET LOSS OF 114 MILLION FOR THE SECOND QUARTER VS NET
INCOME OF 97 MILLION THE YEAR BEFORE

BANKS PARTICIPATING IN THE NEW FACILITY INCLUDE PNC BANK BANCO DI NAPOLI
DRESDNER BANK SOCIETY NATIONAL BANK AND NORWEST BANK MINNESOTA WEIRTON
SAID

BT SECURITIES CORP A SUBSIDIARY OF BANKERS TRUST NEW YORK CORP WAS
FINANCIAL ADVISER TO WEIRTON STEEL FOR THE ARRANGEMENT OF THE NEW FACILITY
9308300122 930830 YOUR MONEY MATTERS FIRMS INCREASINGLY MAKE END RUNS
AROUND ANALYSTS  BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET
JOURNAL

FOR YEARS CORPORATIONS MANIPULATED THE MOOD OF WALL STREET THROUGH PRIVATE
CONVERSATIONS WITH SECURITIES ANALYSTS BUT INCREASINGLY COMPANIES ARE
ABANDONING THOSE COZY RELATIONSHIPS AND ARE TAKING THEIR CASES FOR BETTER
OR WORSE DIRECTLY TO INVESTORS

TEENA LERNER A BIOTECH ANALYST AT LEHMAN BROTHERS FOUND OUT ABOUT THE
TREND THE HARD WAY MS LERNER HAD ALWAYS CONSIDERED AMGEN INC GOOD AT
GUIDANCE THAT IS COMPANY EXECUTIVES WERE ADEPT AT LETTING HER AND OTHER
ANALYSTS KNOW IF THEIR EARNINGS PREDICTIONS FOR THE COMPANY WERE ON TRACK

THEN ON FEB 24 AFTER THE STOCK MARKET CLOSED AMGEN HASTILY ARRANGED A
CONFERENCE CALL WITH ANALYSTS MS LERNER RECALLS THAT SHE GOT A SICK
SINKING FEELING THAT THE GAME HAD CHANGED

INDEED IT HAD EVEN AS THE ANALYSTS WERE PHONING AMGEN THE COMPANY WAS
DISPATCHING NEWS ON BUSINESS WIRES THAT BECAUSE OF DISAPPOINTING SALES
EARNINGS WOULD BE 15 BELOW EXPECTATIONS MS LERNER HAD A BUY
RECOMMENDATION ON THE STOCK WHICH PLUNGED 20 ON THE DAY FOLLOWING THE BAD
NEWS

SINCE THEN THE TREND TOWARD MAKING END RUNS AROUND ANALYSTS HAS ACCELERATED
DURING THE RECENT SPATE OF SECONDQUARTER EARNINGS RELEASES EARLY WARNING
MISSIVES CAME OUT OF APPLE COMPUTER INC AMR CORP DELL COMPUTER CORP
MARION MERRELL DOW INC KMART CORP MINNESOTA MINING & MANUFACTURING CO
US SHOE CORP US SURGICAL CORP AND SEVERAL DOZEN OTHERS

INCREASINGLY COMPANIES ARE BENDING OVER BACKWARD TO ENSURE THAT ALL
INVESTORS HAVE EQUAL ACCESS TO WARNING SIGNALS ON THE COMING EARNINGS
REPORT SAYS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO A
WALL STREET FIRM

WHILE CONSUMER INVESTOR GROUPS ARE DELIGHTED THE NEW OPENNESS IS TAKING
SOME OF THE GAMESMANSHIP OUT OF WALL STREET'S HOTLY COMPETITIVE RESEARCH
RACE TYPICALLY IN THE FINAL WEEKS OF A QUARTER THERE'S A RITUALISTIC
DANCE UNDER WAY BETWEEN ANALYSTS AND THE COMPANIES THEY FOLLOW IN GUIDING
ANALYSTS COMPANY EXECUTIVES STEER THEM TOWARD INTERNAL ESTIMATES BY
REFERRING TO SALES FOR EXAMPLE AS A LITTLE WEAK OR DOWN

ANALYSTS SCRUTINIZE THOSE PHRASES TO SEE IF THEY JIBE WITH CURRENT
ESTIMATES TO SOME SEASONED ANALYSTS FOR PARTICULAR COMPANIES WEAK MEANS
DOWN 5 WHILE VERY WEAK DOWN 10

IT'S LISTENING TO THE TONE OF VOICE THE ENTHUSIASM OF A RESPONSE SAYS
GARY PALMERO A LONGTIME PAPER INDUSTRY ANALYST FOR OPPENHEIMER & CO

SOMETIMES COMPANY EXECUTIVES MAKE IT A LITTLE EASIER THEY WILL NOTE THAT
THEY'RE COMFORTABLE WITH A PARTICULAR ANALYST'S ESTIMATE IN EFFECT
PUTTING HOLY WATER ON CERTAIN PROJECTIONS MR PALMERO SAYS

COMPANY EFFORTS TO GO DIRECTLY TO SHAREHOLDERS HAVE BEEN PROMPTED IN PART BY
LITIGIOUS HOLDERS WHO SUE IF THEY THINK THEY WEREN'T TOLD PROMPTLY OF BAD
NEWS SUCH STOCKHOLDER SUITS HAVE RISEN THREEFOLD DURING THE PAST FIVE
YEARS

DELL COMPUTER CERTAINLY LEARNED THAT LESSON THE AUSTIN TEXAS COMPANY
DIDN'T WARN SHAREHOLDERS THAT FIRSTQUARTER EARNINGS WOULD BE DOWN NEARLY
50 FROM THE YEARBEFORE LEVEL AND WOUND UP FIGHTING 17 SHAREHOLDER
CLASSACTION SUITS THE COMPANY TOOK PAINS TO ISSUE AN EARLY WARNING FOR
SECONDQUARTER RESULTS IT'S A FEEDING FRENZY A SPOKESWOMAN SAYS

IN CUPERTIO CALIF DELL COMPETITOR APPLE REFERRED QUESTIONS TO A PALO ALTO
LAW FIRM KNOWN FOR DEFENSE OF HIGHTECH COMPANIES AGAINST CLASSACTION
SUITS GOOD DISCLOSURE POLICY AND STRATEGIC STEPS FOR AVOIDING A
SHAREHOLDER SUIT TEND TO COINCIDE SAYS BORIS FELDMAN A PARTNER AT THE
FIRM SONSINI GOODRICH & ROSATI CORPORATE DEFENSE ATTORNEYS SAY DISCLOSURE
IS A HOT TOPIC AT SEMINARS AND CONFERENCES

WE COUNSEL COMPANIES TO AVOID SURPRISES SAYS HARVEY PITT AN ATTORNEY AT
FRIED FRANK HARRIS SHRIVER & JACOBSON IN WASHINGTON

BUT THE EARLY WARNING SYSTEMS DON'T ALWAYS WORK ALTHOUGH APPLE'S EARLY
WARNING WENT OUT JUNE 9 THE COMPUTER MAKER WAS NEVERTHELESS HIT WITH A
CLASSACTION SUIT IT CONTENDS THAT APPLE MISLED INVESTORS WITH OPTIMISTIC
COMMENTS TO ANALYSTS AND THE PRESS EARLIER IN THE YEAR WHEN IT KNEW BUSINESS
WAS ALREADY WEAK MANAGEMENT KNEW THE SITUATION WAS FAR FAR WORSE THAN
THEY LET ON INITIALLY SAYS WILLIAM LERACH OF MILBERG WEISS BERSHAD HYNES &
LERACH SAN DIEGO WHO REPRESENTS SHAREHOLDERS IN THE SUIT

AN ERRATIC ECONOMY IS ALSO CONTRIBUTING TO THE EFFORT TO GET THE WORD OUT
EARLY SPORADIC ECONOMIC GROWTH HAS BEEN PULLING THE RUG OUT FROM WHAT MANY
COMPANIES HAD HOPED WOULD BE A PROFIT RECOVERY SOME ARE BEING FORCED TO
TAKE LARGE ONETIME CHARGES RELATED TO RESTRUCTURING THEIR OPERATIONS AND
LAYING OFF HUNDREDS OR EVEN THOUSANDS OF EMPLOYEES GIVEN THE RESULTING
VOLATILITY IN STOCK PRICES MANY COMPANIES ARE CONCLUDING THAT IT IS IN
THEIR BEST INTEREST TO DEAL DIRECTLY WITH SHAREHOLDERS

BAXTER INTERNATIONAL INC PUT OUT A WARNING JULY 9 THAT ITS SECONDQUARTER
OPERATING RESULTS WOULDN'T MEET EXPECTATIONS WE FELT IT WOULD BE BETTER TO
ACT DEMOCRATICALLY AND MAKE SURE EVERYONE GOT THE MESSAGE AT THE SAME TIME
A BAXTER SPOKESMAN SAYS OF THE RELEASE

IT'S MORE OF A PHILOSOPHY THAN A STRATEGY SAYS BELLA GOREN AMR CORP'S
DIRECTOR OF INVESTOR RELATIONS OUR MANAGEMENT BELIEVES IT IS ALWAYS
APPROPRIATE TO PRESENT OUR OUTLOOK TO THE PUBLIC AND OUR INVESTORS

OF COURSE FEW ANALYSTS RELY SOLELY ON CRYPTIC CONVERSATIONS WITH EXECUTIVES
TO PIN DOWN FUTURE EARNINGS THE BEST COMBINE THESE CONVERSATIONS WITH
MATERIAL GLEANED FROM OTHER SOURCES LIKE CUSTOMERS SUPPLIERS DISTRIBUTORS
AND ANYBODY ELSE IN THE KNOW

BUT COMPANY CONVERSATIONS ARE IMPORTANT WHICH IS WHY ANALYSTS TODAY HAVE
MIXED EMOTIONS ABOUT THE BURGEONING PUBLIC EARLY WARNING SYSTEMS

IT LEVELS THE PLAYING FIELD AND YOU CAN'T GET AN EDGE COMPLAINS LORRAINE
SCHWARZ A WERTHEIM SCHRODER ANALYST SHE HAD LOWERED HER QUARTERLY ESTIMATE
FOR BAXTER ONCE ALREADY IN THE QUARTER AND THEN DID SO AGAIN AFTER THE
HOSPITALSUPPLY COMPANY PUT OUT ITS JULY 9 WARNING

IT COMMODITIZES INFORMATION ABOUT A COMPANY ADDS JAY CUSHMAN DIRECTOR OF
EQUITY RESEARCH AT MORGAN STANLEY & CO ANOTHER PROBLEM HE SAYS IS THAT AN
EARLY RELEASE REDUCES THE TIME SPAN AVAILABLE FOR AN ANALYST TO DO THE
DETECTIVE WORK NEEDED TO FIGURE OUT IF EARNINGS ARE STILL ON TRACK AS A
RESULT THERE'S A GOOD CHANCE ANALYSTS WILL WIND UP EMBARRASSED

AFTER MS LERNER GOT THE NEWS ON AMGEN WITH EVERYONE ELSE SHE RECALLS
THINKING NO MATTER HOW MUCH I POSTURED AND TRIED TO SAVE FACE THE NEXT
MORNING BEFORE LEHMAN'S SALES FORCE THE STOCK WOULD OPEN DOWN AND OUR
CLIENTS WOULD LOSE MONEY NEVERTHELESS SHE APPLAUDS THE TREND I'D RATHER
HAVE A LEVEL PLAYING FIELD IF IT'S THE TRUTH IT SHOULD COME OUT IN A FAIR
WAY 9308300121 930830 FAA CLEARS REQUEST FOR 3APERSON CHARGE FOR
LOGAN DEPARTURES

WASHINGTON THE FEDERAL AVIATION ADMINISTRATION APPROVED A REQUEST FROM
MASSACHUSETTS TO IMPOSE A 3APERSON DEPARTURE CHARGE ON PASSENGERS AT
BOSTON'S LOGAN INTERNATIONAL AIRPORT STARTING NOV

THE DEPARTURE TAX WOULD RAISE 599 MILLION OVER 165 YEARS FOR IMPROVING
TERMINALS SOUNDPROOFING 3000 HOMES NEAR THE AIRPORT BUILDING ROADS AND A
LIGHTRAIL TRANSFER SYSTEM AND OTHER USES THE PROGRAM WHICH WAS OPPOSED
IN PART BY SOME AIRLINES IS ONE OF THE LARGEST APPROVED IN THE THREE YEARS
THE GOVERNMENT HAS ALLOWED SUCH PASSENGER FACILITY CHARGES 9308300120
930830 SATURN IS INVESTIGATED FOLLOWING COMPLAINTS OF BRAKE PROBLEMS

WASHINGTON FEDERAL CARSAFETY OFFICIALS HAVE BEGUN AN INVESTIGATION INTO
WHETHER 19911993 SATURN CARS HAVE A PROBLEM WITH OVERHEATING BRAKES

THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION INVESTIGATION DISCLOSED
FRIDAY CENTERS ON THE SENSORS THAT CAUSE BRAKE LIGHTS TO GO ON COMPLAINTS
HAVE ALLEGED THAT THE SENSORS ARE ADJUSTED WRONG PUTTING JUST ENOUGH
PRESSURE ON THE BRAKES TO OVERHEAT THEM OVER TIME AND MAKE THEM LESS
EFFECTIVE

THE AGENCY SAID IT STARTED THE BRAKE INVESTIGATION JULY 29 AFTER RECEIVING
SEVEN COMPLAINTS AND THEN LEARNED THAT SATURN A UNIT OF GENERAL MOTORS
CORP HAD RECEIVED 400 COMPLAINTS ABOUT THE BRAKES OF THOSE 69 INVOLVED
COLLISIONS TWO WITH INJURIES BLAMED ON THE BRAKES A SATURN SPOKESMAN SAID
THE COMPANY'S VEHICLES ARE SAFE AND THAT SATURN IS COMPILING A RESPONSE TO
NHTSA

SATURN ALREADY IS RECALLING ALL 352767 VEHICLES IT BUILT BEFORE APRIL TO
CORRECT FAULTY GENERATORS THAT COULD CAUSE FIRES IN ENGINE COMPARTMENTS AND
NHTSA LAST MONTH STEPPED UP ITS INVESTIGATION OF COMPLAINTS ABOUT SEATS THAT
SUDDENLY COLLAPSE IN SOME SATURNS

SEPARATELY ON FRIDAY THE AGENCY SAID IT STEPPED UP INVESTIGATIONS OF
ALLEGED FUELLINE LEAKS IN GM LARGEBODY 1993 MODELS SUCH AS BUICK LE SABRES
AND OLDSMOBILE 88S PARKINGBRAKE FAILURES IN CERTAIN 1992 FORD MOTOR CO
TRUCKS AND VANS AND HIGH IDLING IN FORD 38LITER AND 58LITER ENGINES IN
1991 AND 1992 MODELS 9308300119 930830 INTERNATIONAL MEXICO
LEGISLATURE'S LOWER HOUSE CLEARS MEASURES TO REDUCE ELECTION FRAUD 
 BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET
JOURNAL

MEXICO CITY THE LOWER HOUSE OF THE MEXICAN LEGISLATURE APPROVED A
SWEEPING SERIES OF CONSTITUTIONAL REFORMS OVER THE WEEKEND THAT ARE DESIGNED
TO REDUCE THE FRAUD THAT TYPICALLY MARS ELECTIONS HERE

THE ADMINISTRATION OF PRESIDENT CARLOS SALINAS DE GORTARI ALSO ISSUED RULES
REQUIRING THAT GOVERNMENT OFFICIALS BE AUDITED TO DETERMINE THEIR NET WORTH
AND THEIR INCOME SO AS TO DETERMINE IF THEY ARE ENRICHING THEMSELVES IN
OFFICE IN THE PAST OFFICIALS ENTERING GOVERNMENT WITH MODEST HOLDINGS AND
LIMITED SALARIES HAVE AT THE END OF THEIR TERMS OCCASIONALLY WOUND UP WITH
ENOUGH MONEY THAT THEY WOULD OPENLY BUILD MULTIMILLIONDOLLAR MANSIONS TO
SAY HOUSE THEIR MISTRESSES YET HAVEN'T BEEN PROSECUTED

IT REMAINS TO BE SEEN HOW STRENUOUSLY THE CONSTITUTIONAL REFORMS AND AUDITS
ARE ENFORCED PRESIDENT SALINAS'S PARTY REMAINS FIRMLY IN CONTROL AS IT HAS
FOR DECADES AND OPPOSITION FIGURES ARGUE THAT IT CAN STILL FIX ELECTIONS OR
LOOK THE OTHER WAY AS PARTY MEMBERS ENRICH THEMSELVES THEY ALSO NOTE THAT
THE GOVERNMENT HAS TALKED ABOUT ELECTION REFORM BEFORE WHILE CHANGING
LITTLE LIKEWISE PRESIDENT SALINAS'S PREDECESSOR MIGUEL DE LA MADRID
PROMISED TO END CORRUPTION IN GOVERNMENT TO ONLY MODEST EFFECT

THE CHANGES ARE BEING TAKEN MORE SERIOUSLY THIS TIME PARTLY BECAUSE
PRESIDENT SALINAS HAS ALREADY PRODUCED MUCH CHANGE IN HIS FOUR AND A HALF
YEARS IN OFFICE IN ADDITION WITH THE NORTH AMERICAN FREE TRADE AGREEMENT
FACING SUCH A STRONG CHALLENGE IN THE US CONGRESS IT MIGHT HELP THE
TREATY'S CHANCES OF PASSAGE IF PRESIDENT SALINAS COULD SHOW HE IS REALLY
MAKING MEXICO MORE OF A DEMOCRACY

I THINK THE ELECTIONS WILL BE CLEANER IN 1994 WHEN PRESIDENT SALINAS'S
SUCCESSOR IS CHOSEN SAYS SOLEDAD LOEZA AN ACADEMIC IN MEXICO CITY

IN VOTING TO REFORM THE CONSTITUTION THE MEXICAN CHAMBER OF DEPUTIES
CLEARED THE WAY FOR THE MEXICAN LEGISLATURE TO IMPOSE LIMITS ON PARTY
FINANCING AND TO CONTROL THE CONDUCT OF ELECTION CAMPAIGNS THE REFORM
FOLLOWS SEVERAL EARLIER ATTEMPTS BY THE RULING PARTY THE INSTITUTIONAL
REVOLUTIONARY PARTY KNOWN AS PRI TO GIVE OTHER PARTIES MORE ACCESS TO
TELEVISION AND NEWSPAPERS DURING CAMPAIGNS AND TO MAKE CAMPAIGN SPENDING
MORE EQUITABLE

THE ISSUE OF ELECTORAL REFORM ALSO TOOK ON URGENCY EARLY THIS YEAR FOLLOWING
AN INFAMOUS DINNER AT WHICH MORE THAN TWO DOZEN OF THE NATION'S RICHEST
PEOPLE MADE PLEDGES THAT REPORTEDLY WERE IN THE TENS OF MILLIONS OF DOLLARS
APIECE TO SUPPORT PRESIDENT SALINAS'S RULING PARTY THE PRI INTERNATIONAL
PUBLICITY FOLLOWING THE DINNER FORCED THE PRI TO DISAVOW THE PLEDGES AND
PROMISE TO PLACE LIMITS ON CAMPAIGN CONTRIBUTIONS

AMONG NUMEROUS OTHER CHANGES THE CHAMBER OF DEPUTIES ALSO VOTED TO LIMIT
THE CONTROL THAT ANY PARTY COULD HAVE OVER CONGRESS CURRENTLY THE PARTY
THAT WINS THE PRESIDENTIAL ELECTION GETS AS MANY AS 350 OF THE 500 SEATS IN
THE CHAMBER OF DEPUTIES ENOUGH TO LET IT PASS ANY LEGISLATION IT WANTS THE
CHANGES WILL LIMIT THE RULING PARTY TO 315 SEATS GIVING THE OPPOSITION
PARTIES THE CHANCE TO AT LEAST BLOCK PROPOSED CONSTITUTIONAL REFORMS FOR
THE FIRST TIME IN MORE THAN 60 YEARS THE CHANGES WILL ALSO EXPAND THE
MEXICAN SENATE AND GIVE OPPOSITION PARTIES 25 OF THE SEATS CURRENTLY THE
PRI HOLDS 61 OF THE 64 SEATS

ALTHOUGH THE PRI COULD HAVE RAMMED THROUGH THE CHANGES IT LET DEBATE DRAG
ON BECAUSE IT NEEDED TO GET SUPPORT FROM OTHER PARTIES TO GIVE THE CHANGES
LEGITIMACY THE PRI EVENTUALLY WON SUPPORT FROM THE BIGGEST OPPOSITION
PARTY THE NATIONAL ACTION PARTY KNOWN AS PAN THE PRI DID NOT HOWEVER WIN
THE SUPPORT OF THE PARTY OF THE DEMOCRATIC REVOLUTION OR PRD WHOSE
CANDIDATE NEARLY DEFEATED PRESIDENT SALINAS IN 1988 AND MAY WELL HAVE IF
OPPOSITION CHARGES OF FRAUD ARE TO BE BELIEVED THE CHANGES STILL MUST BE
APPROVED BY THE SENATE BUT THAT HOUSE IS A RUBBER STAMP GIVEN THE PRI'S
CONTROL OF ALMOST ALL SEATS 9308300118 930830 BAYER TO TRIM SHIFTS AT
THREE FACILITIES SLOW ECONOMY IS CITED

FRANKFURT GERMANY'S BAYER AG CHEMICAL GROUP SAID IT PLANS TO PUT UP TO
2400 WORKERS ON SHORTENED WORK SHIFTS BECAUSE OF CONTINUING ECONOMIC
WEAKNESS AND THE RESULTING DOWNTURN IN DEMAND

THE SHORT SHIFTS IN THE SECOND HALF WILL AFFECT WORKERS AT THE COMPANY'S
PLANTS IN LEVERKUSEN KREFELDUERDINGEN AND BRUNSBUETTEL BAYER SAID

IN BAYER'S LEVERKUSEN PLANT 1800 EMPLOYEES IN THE AREAS OF ORGANIC
CHEMICALS AND PAINTS AS WELL AS THE ATTACHED ENGINEERING TECHNOLOGY
DIVISION WILL WORK SHORTENED SHIFTS FROM SEPTEMBER THROUGH NOVEMBER BAYER
SAID IN MAY AND JUNE 2400 WORKERS IN THOSE AREAS WORKED SHORTENED SHIFTS

SHORT SHIFTS BEGINNING IN SEPTEMBER AND RUNNING THROUGH THE END OF THE YEAR
ARE SEEN FOR 220 WORKERS AT THE KREFELDUERDINGEN PLANT IN THE
ORGANICCHEMICALS AREA AND THE ATTACHED ENGINEERING TECHNOLOGY SECTION

AT THE BRUNSBUETTEL PLANT ABOUT 320 WORKERS IN THE AREAS OF PAINTS AND
DYES ORGANIC CHEMICALS AND POLYURETHANE PLANT MANAGEMENT AND CENTRAL
RESEARCH WILL BE PUT ON SHORT SHIFTS FROM THE END OF SEPTEMBER THROUGH
NOVEMBER THE COMPANY SAID THE NUMBER OF EMPLOYEES AFFECTED AT BRUNSBUETTEL
AND THE DURATIONS OF THEIR REDUCED SHIFTS WILL VARY

GERMAN COMPANIES OFTEN INSTITUTE SHORTENED WORK SHIFTS TO AVOID LAYOFFS
9308300117 930830 TECHNOLOGY & ENVIRONMENT HIGHER CANCER RATES CITED 
IN ITALIAN DIOXIN STUDY

NEW YORK AP LEUKEMIA LYMPHOMA AND LIVER CANCER ARE OCCURRING AT
HIGHERTHANNORMAL RATES IN PEOPLE EXPOSED TO A CLOUD OF DIOXIN FROM A
CHEMICALPLANT EXPLOSION IN ITALY 17 YEARS AGO RESEARCHERS HAVE FOUND

WE FOUND A LOT OF CANCER THAT WAS ALREADY KNOWN TO BE ASSOCIATED WITH
DIOXIN IN LABORATORY STUDIES AND OTHER RESEARCH SAID DR ADRIANA TIRONI OF
THE UNIVERSITY OF MILAN AN AUTHOR OF A STUDY COVERING THE 10 YEARS
FOLLOWING THE 1976 EXPLOSION IN SEVESO ITALY THE STUDY IS TO BE PUBLISHED
TODAY IN THE SCIENTIFIC JOURNAL EPIDEMIOLOGY

THE RESEARCHERS DETERMINED THE NUMBER OF CANCER CASES IN MORE THAN 36000
PEOPLE EXPOSED TO A FORM OF DIOXIN KNOWN AS TCDD THE RESEARCHERS THEN
COMPARED THAT GROUP WITH 180000 PEOPLE LIVING NEARBY WHO WEREN'T EXPOSED

OF THE STUDY GROUP THE 4824 PEOPLE WITH MODERATE EXPOSURE TO DIOXIN HAD
28 TIMES THE LIVER CANCER RISK OF THE UNEXPOSED POPULATION THE EXPOSED
GROUP HAD 37 TO 57 TIMES THE RISK OF LEUKEMIA AND LYMPHOMA THE
RESEARCHERS FOUND

THE 31647 PEOPLE WITH THE SMALLEST EXPOSURE HAD DOUBLE THE RISK OF
NONHODGKIN'S LYMPHOMA AND 35 TIMES THE RISK OF SOFTTISSUE SARCOMAS WHICH
CAN OCCUR AT VARIOUS PLACES IN THE BODY

RESEARCHERS SAID THE SAMPLE OF HEAVILY EXPOSED PEOPLE WAS TOO SMALL TO ALLOW
MEANINGFUL CONCLUSIONS 9308300116 930830 WHO'S NEWS HILTON HOTELS'
DILLON WILL RETIRE FROM POST OF VICE CHAIRMAN

BEVERLY HILLS CALIF HILTON HOTELS CORP SAID GREGORY R DILLON WHO HAS
SERVED THE COMPANY IN VARIOUS CAPACITIES OVER FOUR DECADES WILL RETIRE AS
VICE CHAIRMAN THIS WEEK

MR DILLON 71 YEARS OLD WILL RETAIN THE TITLE OF VICE CHAIRMAN EMERITUS
HE WILL ALSO CONTINUE AS A MEMBER OF HILTON'S BOARD OF DIRECTORS HAVING
BEEN ELECTED TO ANOTHER THREEYEAR TERM IN MAY MR DILLON WILL SERVE TOO
AS A CONSULTANT TO HILTON AND CONRAD HOTELS KEEPING AN OFFICE IN BEVERLY
HILLS

MR DILLON JOINED HILTON IN 1950 WITH A JOB IN ITS REAL ESTATE AND LABOR
RELATIONS DEPARTMENT HE LATER LEFT THE COMPANY TO WORK AT A LAW FIRM ON THE
HILTON ACCOUNT HE REJOINED THE COMPANY IN 1964 AS ASSISTANT TO FOUNDER
CONRAD HILTON MR DILLON HAS SERVED IN VARIOUS EXECUTIVE POSTS EVER SINCE

HE WON'T BE DIRECTLY SUCCEEDED IN HIS POST ALTHOUGH ERIC M HILTON ONE OF
THE FOUNDER'S SONS WAS NAMED VICE CHAIRMAN IN CHARGE OF CORPORATE PLANNING
AND PROPERTY DEVELOPMENT 9308300115 930830 CONSTRUCTION INDEX DECLINED
IN JULY AFTER JUNE SURGE  BY JAMES C HYATT STAFF REPORTER OF
THE WALL STREET JOURNAL

NEW YORK CONSTRUCTION CONTRACTING DECLINED IN JULY FOLLOWING A SURGE IN
JUNE THE FW DODGE DIVISION OF MCGRAWHILL INC REPORTED

THE REPORT SAID THE DODGE INDEX DECLINED ON A SEASONALLY ADJUSTED BASIS IN
JULY TO 98 DOWN FROM JUNE'S REVISED READING OF 103 THE INDEX USES 1987 AS
A BASE OF 100

CONTRACTING SOFTENED IN NONRESIDENTIAL BUILDING AND NONBUILDING
CONSTRUCTION WHILE RESIDENTIAL CONSTRUCTION SHOWED MODEST IMPROVEMENT
RISING 3 AIDED BY A 13 ADVANCE IN MULTIFAMILY STARTS SINGLEFAMILY
CONTRACTING REMAINED ESSENTIALLY UNCHANGED

JULY'S RETRENCHMENT CAME AS NO SURPRISE PARTICULARLY WITH JUNE BEING
BUOYED BY A CLUSTER OF VERY LARGE PROJECTS SAID ROBERT A MURRAY VICE
PRESIDENT OF ECONOMIC AFFAIRS FOR FW DODGE PERHAPS THE BEST DESCRIPTION
FOR JULY IS THAT THE INDUSTRY SETTLED BACK TO A MORE SUSTAINABLE PACE
RATHER THAN VIEWING IT AS A FURTHER LOSS OF MOMENTUM

NONRESIDENTIAL CONSTRUCTION IN JULY FELL 6 WHILE THE INSTITUTIONAL
BUILDING SECTOR DECLINED 15 COMMERCIAL AND INDUSTRIAL BUILDING ROSE 6
WITH ESPECIALLY STRONG VOLUME FOR STORES AND SHOPPING CENTERS

NONBUILDING CONSTRUCTION FELL 16 IN COMPARISON WITH JUNE WHICH INCLUDED
CONSTRUCTION OF TWO LARGE POWER PLANT PROJECTS PUBLIC WORKS CONSTRUCTION
WHICH EXCLUDES UTILITIES ROSE 2 IN JULY AIDED BY IMPROVEMENTS FOR
HIGHWAYS AND BRIDGES

THE LACK OF A STRONG RESPONSE BY SINGLEFAMILY HOUSING TO LOW MORTGAGE
RATES IS PROBABLY THE MOST TROUBLING FEATURE OF THE CONSTRUCTION INDUSTRY SO
FAR THIS YEAR MR MURRAY SAID

FOR THE FIRST SEVEN MONTHS CONSTRUCTION CONTRACTS TOTALED 15104 BILLION
UP 1 FROM THE 14882 BILLION A YEAR EARLIER 9308300114 930830 JAPANESE
STORES POST 5 SALES DROP FOR JULY  SPECIAL TO THE WALL STREET
JOURNAL

TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN JULY
WERE DOWN 5 TO 2079 TRILLION YEN 1992 BILLION FROM THE YEAREARLIER
MONTH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID

RAINY AND COOL WEATHER DURING THE SUMMER HAS DEPRESSED PURCHASES OF CLOTHING
AND OTHER SEASONAL GOODS DEEPENING THE CYCLICAL DOWNTURN IN SPENDING THAT
HAS BEEN CONTINUING FOR 14 MONTHS

CONSUMPTION ACCOUNTS FOR ABOUT 60 OF JAPAN'S GROSS NATIONAL PRODUCT WHICH
MEASURES THE OUTPUT OF THE COUNTRY'S GOODS AND SERVICES SO SPENDING
COMMANDS A LOT OF ATTENTION AMONG ANALYSTS ESPECIALLY AS PRIVATE
RESEARCHERS ARE DOWNGRADING THEIR EXPECTATIONS FOR GNP FOR THE CURRENT
FISCAL YEAR TO MINIMAL GROWTH

A MITI OFFICIAL SAID THE UNSEASONABLY COOL WEATHER IN JULY WAS A MAJOR
FACTOR IN CURBING SALES AS WAS THE CONTINUING CAUTIOUSNESS OF CONSUMERS
MITI NOTED THE COOL WEATHER HELD BACK SALES OF SUMMER SUITS AIR
CONDITIONERS AND SUCH FOOD ITEMS AS BEER AND ICE CREAM IN ADDITION
REFLECTING THE RELUCTANCE OF CONSUMERS TO LOOSEN THEIR HOLD ON THEIR PURSE
STRINGS SALES RELATED TO JAPAN'S TRADITIONAL SUMMER GIFTGIVING SEASON WERE
TEPID

LOOKING AHEAD THE OFFICIAL SAID HE DOESN'T SEE ANY BRIGHT SIGNS FOR AUGUST
HE NOTED THAT THE WEATHER HAS REMAINED COOL INTO THIS MONTH 9308300113
930830 DIGITAL PRODUCTS HEAD AND 2 OTHERS INDICTED IN ALLEGED BANK SCAM

NEWARK NJ THE US ATTORNEY'S OFFICE FOR THE DISTRICT OF NEW JERSEY
INDICTED THE CHAIRMAN OF DIGITAL PRODUCTS INC AND TWO OTHERS ON CHARGES OF
DEFRAUDING BANKS OF MORE THAN 5 MILLION

FIFTYTHREEYEAROLD THEODORE SABARESE OF FORT LAUDERDALE FLA FACES 29
COUNTS WHICH CARRY A MAXIMUM PENALTY OF 145 YEARS IN JAIL A 10 MILLION
FINE AND AN ORDER OF RESTITUTION HE IS ALSO PRESIDENT OF FORT
LAUDERDALEBASED DIGITAL WHICH MAKES ELECTRONIC ANKLE BRACELETS FOR
CONVICTS SENTENCED TO HOME CONFINEMENT

MR SABARESE IS FOUNDER AND FORMER CHAIRMAN OF ULTIMATE CORP OF EAST
HANOVER NJ A COMPUTER SYSTEMS COMPANY

CHARGED WITH 28 COUNTS WERE LOUIS ANGELO 49 OF FORT LAUDERDALE FLA AND
CARL PARIS 48 OF DALLAS

THE THREE COULDN'T BE REACHED FOR COMMENT

MR SABARESE'S INVOLVEMENT IN AN AIRCRAFT SALES AND CHARTERING COMPANY LED
TO HIS FILING FOR CHAPTER 11 PROTECTION UNDER THE FEDERAL BANKRUPTCY CODE IN
1989 ACCORDING TO THE US ATTORNEY THE COMPANY LTD ENTERPRISES LTD
WAS THE VEHICLE FOR THE ALLEGED DEFRAUDING SCHEME

ACCORDING TO THE US ATTORNEY'S OFFICE THE THREE MEN ALLEGEDLY FINANCED
AIRCRAFT PURCHASES FOR MORE THAN THEIR PURCHASE PRICES KEEPING THE EXCESS
FINANCING FOR THEIR OWN USE

THE THREE MEN WERE CHARGED WITH BANK FRAUD WIRE FRAUD AND CONSPIRACY TO
COMMIT BANK AND WIRE FRAUD THE ALLEGED CONSPIRACY INVOLVED BANKS IN NEW
JERSEY INDIANA GEORGIA AND MASSACHUSETTS

MESSRS SABARESE ANGELO AND PARIS HAVE NOT BEEN ARRESTED AND THE US
ATTORNEY'S OFFICE SAID IT COULDN'T SPECIFY WHEN THEY WOULD BE ARRAIGNED
9308300112 930830 INTERNATIONAL AS EXPORTS TO EC DROP US AND JAPAN 
LIKELY TO FIND GERMAN RATES A SORE POINT  BY TERENCE ROTH STAFF
REPORTER OF THE WALL STREET JOURNAL

FRANKFURT AS THE FALLOUT FROM EUROPE'S RECESSION REACHES OTHER
CONTINENTS THE US AND JAPAN ARE LIKELY TO JOIN GERMANY'S NEIGHBORS IN
LOSING PATIENCE WITH THE GERMAN CENTRAL BANK'S UNWILLINGNESS TO CUT INTEREST
RATES

WITH THE US AND JAPAN ALREADY FRETTING OVER THEIR OWN MASSIVE TRADE
IMBALANCE IN JAPAN'S FAVOR BOTH WASHINGTON AND TOKYO WILL SHARE THE EFFECTS
OF EUROPE'S RAPID DECLINE IN DEMAND FOR IMPORTS THE US REGISTERED A 104
YEARTOYEAR DROP IN EXPORTS TO THE EUROPEAN COMMUNITY IN JUNE THE SAME
MONTH THAT THE US MERCHANDISE TRADE DEFICIT WIDENED TO 1206 BILLION IN
JUNE FROM 838 BILLION A YEAR EARLIER

IN THE SECOND QUARTER US EXPORTS TO EUROPE WERE DOWN 92 FROM A YEAR
EARLIER COMPARED WITH A 53 DECLINE IN THE FIRST QUARTER AND WITHOUT ANY
SIGNIFICANT SHIFT IN CURRENCYEXCHANGE LEVELS ANALYSTS SAY THE DECLINES
POINT CLEARLY TO RECEDING IMPORT DEMAND AS EUROPEAN CONSUMERS AND INDUSTRY
FACED AT LEAST ANOTHER YEAR OF STAGNATION

FOR THE US THAT TREND IS LIKELY TO FOSTER NEW CALLS ON LEADING TRADING
PARTNERS TO STIMULATE DEMAND IN THEIR ECONOMIES WHEN FINANCE MINISTERS AND
CENTRAL BANKERS OF THE GROUP OF SEVEN LEADING INDUSTRIAL NATIONS MEET IN
WASHINGTON IN LATE SEPTEMBER ABOUT 22 OF US EXPORTS GO TO THE EC
ROUGHLY EQUAL TO EXPORTS TO CANADA AND TO EASTERN ASIA INCLUDING JAPAN AND
CHINA

LITTLE IS EXPECTED TO CHANGE SOON FISCAL RESTRAINTS AND HIGH INTEREST RATES
SET BY THE BUNDESBANK GERMANY'S CENTRAL BANK HAVE DOUSED MOST HOPES FOR A
SIGNIFICANT RECOVERY EVEN IN 1994 IN MOST OUTLOOKS ECONOMISTS ONLY
DISAGREE OVER WHETHER THE EC WILL STAGE A SLUGGISH BOTTOMBUMPING RECOVERY
OR ANOTHER YEAR OF NEGATIVE GROWTH NEXT YEAR

THE EUROPEAN RECESSION IS AT LEAST PARTLY DUE TO THE GERMAN MONETARY
POLICY IT WOULDN'T HAVE BEEN AS BAD IF THE BUNDESBANK COULD HAVE
ACCOMMODATED THE NEEDS OF OTHER COUNTRIES EARLIER SAID SIEGFRIED UTZIG AN
ECONOMIST AT THE COLOGNEBASED FEDERATION OF GERMAN INDUSTRY GERMANY'S
LEADING TRADE GROUP BUT HE SAYS EUROPE ALSO IS IN AN ECONOMIC AND
STRUCTURAL CRISIS THAT WILL KEEP CONSUMER DEMAND AND THUS IMPORTS
SLUGGISH

THE EC'S IMPROVING TRADE BALANCE SHOWS THAT THIS ALREADY IS HAPPENING THE
ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT PREDICTS THAT THE EC'S
OVERALL TRADE DEFICIT SHOULD SHRINK TO 89 BILLION IN 1993 FROM A DEFICIT
OF 143 BILLION IN 1992 AND 325 BILLION DEFICIT IN 1991

SEEN FROM THE US THE IMPACT IS CLEAR A SURPLUS IN TRADE WITH THE EC THAT
FELL TO 27 BILLION IN THE FIRST HALF OF 1993 FROM 91 BILLION IN THE
FIRST HALF OF 1992 SHOWING A DEFICIT OF 14 BILLION IN JUNE 1993 ALONE

AFTER GERMANY'S RECESSION SPREAD ACROSS CONTINENTAL EUROPE LAST WINTER THE
OECD IN JUNE REDUCED ITS FORECAST FOR 1993 ECONOMIC GROWTH IN INDUSTRIAL
COUNTRIES TO 12 FROM THE 19 PROJECTION ISSUED SIX MONTHS EARLIER AND IT
REDUCED ITS PROJECTION FOR EXPANSION IN 1993 WORLD TRADE TO 40 FROM 49

OF GERMANY FRANCE ITALY AND THE UNITED KINGDOM WHICH REPRESENT FOURFIFTHS
OF EC OUTPUT ONLY THE UK WILL SHOW ECONOMIC GROWTH THIS YEAR PRODUCTION
COSTS AND LABOR MARKET RIGIDITIES ONLY COMPOUND EUROPE'S ECONOMIC SLOWDOWN

GERMANY WHICH ALONE ACCOUNTS FOR 28 OF THE EC ECONOMY IS WIDELY EXPECTED
TO SHOW MORE DECLINES OR STAGNATION THROUGH THE END OF 1993 AND INTO THE
FIRST HALF OF 1994 GERMANY'S FACTORIES ARE OPERATING AT SLIGHTLY MORE THAN
80 OF CAPACITY BUSINESSES HAVE SHARPLY SCALED BACK CAPITAL SPENDING AND
THE JOBLESS RATE IS EXPECTED TO RISE TO 11 BY THE END OF NEXT YEAR

IF IT'S ANY CONSOLATION FOR US INDUSTRY ITS JAPANESE COMPETITORS ALSO ARE
FEELING THE PINCH IN THE EUROPEAN COMMUNITY WHICH ACCOUNTS FOR 15 OF ALL
JAPANESE EXPORTS IN ADDITION TO EUROPEAN RECESSION JAPANESE PRODUCERS ALSO
ARE BURDENED BY THE YEN'S SHARP APPRECIATION WHICH MAKES JAPANESE EXPORTS
MORE EXPENSIVE

SHIGEKI SAKAKI A SENIOR ECONOMIST FOR THE NOMURA RESEARCH INSTITUTE IN
LONDON SAID JAPANESE EXPORTS TO THE EC IN JULY WERE DOWN 122 FROM A YEAR
EARLIER WITH THE SHARPEST DROPS INCURRED BY JAPAN'S AUTO MAKERS HE SAID
GERMANY AND FRANCE THE LEADING EUROPEAN ECONOMIES APPEAR TO HAVE
STABILIZED AT LOW LEVELS BUT NEITHER SHOWS SIGNS OF RECOVERY SOON

JAPAN AND THE US WILL HAVE TO LOOK TO DEVELOPING MARKETS FOR EXPORT
GROWTH THAT IS IN ASIA AND SOUTH AMERICA MR SAKAKI PREDICTED
9308300111 930830 TECHNOLOGY & ENVIRONMENT TROUBLESHOOTER LEADING TEAM
SENT TO AUDIT ALYESKA PIPELINE PRACTICES  BY CHARLES MCCOY STAFF
REPORTER OF THE WALL STREET JOURNAL

THE INTERIOR DEPARTMENT HAS DISPATCHED A TEAM OF INDEPENDENT ENGINEERS TO
AUDIT ALYESKA PIPELINE SERVICE CO'S SAFETY AND ENVIRONMENTAL PRACTICES
ALONG THE TRANSALASKA PIPELINE GOVERNMENT AND CONGRESSIONAL OFFICIALS
SAID

THE TEAM WILL BE HEADED BY OWEN THERO A KANSASBASED ENGINEERING CONSULTANT
KNOWN FOR HELPING EXPOSE SAFETY PROBLEMS COST OVERRUNS AND WHISTLEBLOWER
HARASSMENT AT NUCLEAR PLANTS IN RECENT YEARS MR THERO IS A HERO TO MANY
PUBLICINTEREST GROUPS BUT IS LOATHED BY MANY IN THE NUCLEAR INDUSTRY

THE MOVE SIGNALS THE GOVERNMENT'S INCREASING CONCERN ABOUT ALYESKA'S
OPERATIONS ALYESKA HAS BEEN UNDER FIRE LATELY FROM WHISTLEBLOWERS
CONGRESSIONAL INVESTIGATORS AND SOME FEDERAL REGULATORS FOR ALLEGED
WIDESPREAD VIOLATIONS OF SAFETY CODES AND ENVIRONMENTAL REGULATIONS SEVERAL
FORMER AND PRESENT ALYESKA TECHNICIANS HAVE COMPLAINED RECENTLY OF CORROSION
AND OTHER POTENTIALLY DANGEROUS CONDITIONS ALONG THE PIPELINE WHICH
TRANSPORTS ABOUT A QUARTER OF THE NATION'S OIL

ALYESKA A CONSORTIUM OWNED BY BRITISH PETROLEUM PLC EXXON CORP ATLANTIC
RICHFIELD CO AND OTHER BIG OIL COMPANIES THAT WORK ALASKA'S NORTH SLOPE
RUNS THE PIPELINE AND THE OILTANKER LOADING FACILITY AT VALDEZ ALASKA IT
DEFENDS ITS ENVIRONMENTAL AND SAFETY PRACTICES AND SAYS THE PIPELINE HAS NO
ABNORMAL CORROSION OR OTHER SIGNIFICANT PROBLEMS A SPOKESWOMAN SAID SUNDAY
THAT THE CONSORTIUM IS AWARE OF THE THERO TEAM'S PLANNED AUDIT BUT DOESN'T
KNOW ITS SCOPE OR FOCUS WE WILL COOPERATE THE SPOKESWOMAN SAID

GOVERNMENT AND CONGRESSIONAL OFFICIALS SAID MR THERO WAS EN ROUTE TO ALASKA
ON SUNDAY THEY SAID HE HAS BEEN HIRED BY THE INTERIOR DEPARTMENT'S BUREAU
OF LAND MANAGEMENT WHICH BY LAW HAS BROAD AUTHORITY TO MONITOR THE
PIPELINE TO HEAD A TEAM OF ENGINEERING AND PIPELINESAFETY
TROUBLESHOOTERS THAT WILL PORE OVER ALYESKA'S OPERATIONS FOR AT LEAST SIX
WEEKS

THE AUDIT APPARENTLY WILL BE THE FIRST BROAD REVIEW OF ALYESKA BY
INDEPENDENT EXPERTS SINCE THE PIPELINE BEGAN OPERATING IN 1977 IT WILL
FOCUS ON SUCH AREAS AS ALYESKA'S MANAGEMENT SYSTEMS AND OVERALL MANAGEMENT
CAPABILITY AS WELL AS PROBE POTENTIAL PROBLEMS RAISED BY WHISTLEBLOWERS
RECENTLY INCLUDING ALLEGED VIOLATIONS OF AIR POLLUTION STANDARDS AND
ELECTRICAL CODES

THAT WOULD MARK A SIGNIFICANT SHIFT IN THE BUREAU OF LAND MANAGEMENT'S
APPROACH TO REGULATING ALYESKA DURING THE 1980S BUREAU OFFICIALS
ESSENTIALLY WITHDREW FROM REGULATING THE CONSORTIUM SAYING THAT THE AGENCY
HAD NO POWER TO MONITOR THE PIPELINE BECAUSE MUCH OF IT RUNS ACROSS STATE
LAND 9308300110 930830 WHY A VAT WON'T HELP US TRADE  BY BRUCE
BARTLETT

IN A RECENT INTERVIEW WITH FORTUNE MAGAZINE PRESIDENT CLINTON INDICATED
THAT HE IS VERY INTERESTED IN THE VALUEADDED TAX AS A MEANS OF PROMOTING
US EXPORTS AS HE PUT IT THE VAT IS THE ONLY INTERNATIONALLY RECOGNIZED
LEGAL WAY TO FAVOR YOUR EXPORTS AND TO IMPOSE A BURDEN ON IMPORTS ALL OUR
COMPETITORS DO IT WHILE MR CLINTON IS CERTAINLY RIGHT ABOUT OTHER
COUNTRIES HAVING VATS HE IS WRONG ABOUT WHY THEY HAVE THEM THE VAT WAS NOT
ADOPTED TO IMPEDE IMPORTS AND SUBSIDIZE EXPORTS BUT PRECISELY BECAUSE IT
DOES NEITHER

THE VAT CAME ABOUT AS A CONSEQUENCE OF EUROPE'S MOVE TOWARD A COMMON MARKET
WHICH BEGAN IN THE LATE 1950S THE EUROPEANS RECOGNIZED THAT IT WAS NOT
ENOUGH SIMPLY TO REMOVE ALL TARIFFS IN ORDER TO ENSURE FREE TRADE IT WAS
ALSO NECESSARY TO REFORM TAXES AND REGULATIONS TO PREVENT THEM FROM BECOMING
SUBSTITUTES FOR TARIFF PROTECTION

IN THE TAX AREA THERE WAS PARTICULAR CONCERN REGARDING THE EFFECTS OF
TURNOVER TAXES WHICH EXISTED IN MOST EUROPEAN COUNTRIES AT THAT TIME THESE
TAXES APPLIED AT EVERY STAGE OF PRODUCTION OR SALE AND THUS HAD A TENDENCY
TO CASCADE WITH TAXES PILING ON TOP OF TAXES AS A RESULT THE ULTIMATE
TAX BURDEN ON GOODS WAS A FUNCTION OF HOW MANY STAGES OF PROCESSING THEY
WENT THROUGH THUS THE SAME GOOD MIGHT BE ASSESSED DIFFERENT TAXES DEPENDING
ON HOW MANY TIMES THE PRODUCT TURNED OVER BEFORE FINAL SALE

TURNOVER TAXES ALSO RAISED SPECIAL PROBLEMS IN THE AREA OF TRADE SINCE SUCH
TAXES OFTEN APPLIED TO GOODS EACH TIME THEY PASSED THROUGH A PARTICULAR
COUNTRY SUCH A TAX SYSTEM THEREFORE WAS CLEARLY DETRIMENTAL TO FREE
TRADE THE SOLUTION WAS TO DEVISE A TAX THAT COULD BE REBATED AT THE BORDER
SO THAT THERE WOULD NEVER BE MORE THAN ONE LAYER OF TAXATION ON ANY
INTERNATIONALLY TRADED GOOD

THIS NEW CREATION WAS THE VAT WHICH COULD BE TRACKED WITH PRECISION
THROUGHOUT THE PRODUCTION PROCESS BY CONTRAST IT WAS IMPOSSIBLE TO
CALCULATE THE PRECISE AMOUNT OF TURNOVER TAX EMBODIED IN GOODS BECAUSE IT
WAS IMPOSSIBLE TO KNOW HOW MANY STAGES THEY HAD PASSED THROUGH IN THE
MID1960S MOST EUROPEAN COUNTRIES REPLACED THEIR TURNOVER TAXES WITH VATS

THE WAY A VAT WORKS IS THAT A MANUFACTURER APPLIES THE APPLICABLE TAX TO THE
SALES PRICE OF HIS GOODS FIRST SUBTRACTING ANY VAT PREVIOUSLY PAID ON
INPUTS IT IS THEREFORE NECESSARY TO HAVE A TRAIL OF INVOICES FOR EACH GOOD
CLEARLY INDICATING THE TOTAL AMOUNT OF VAT PAID AT EACH STAGE OF SALE OR
PROCESSING NOT ONLY DOES THIS ALLOW THE PRECISE AMOUNT OF VAT EMBODIED IN
GOODS TO BE DETERMINED AND THUS BE REBATED AT BORDER CROSSINGS BUT IT ALSO
ELIMINATES THE CASCADING EFFECT OF THE TURNOVER TAX

THE VAT DOES NOT THEREFORE IN ANY WAY SUBSIDIZE EXPORTS OR PENALIZE IMPORTS
AS MR CLINTON SEEMS TO THINK RATHER IT SIMPLY PUTS IMPORTS AND EXPORTS ON
AN EQUAL FOOTING

CONSIDER THE FOLLOWING EXAMPLE COUNTRY A HAS A VAT OF 5 AND COUNTRY B HAS
VAT OF 7 WHEN A PRODUCT IS MANUFACTURED IN COUNTRY A A 5 TAX IS PAID TO
COUNTRY A WHEN THIS PRODUCT IS EXPORTED TO COUNTRY B COUNTRY A'S 5 VAT IS
REBATED TO THE SELLER AT THE BORDER AND COUNTRY B'S 7 IS APPLIED AT THE
SAME BORDER THUS ANY GOOD SOLD IN COUNTRY A OR COUNTRY B WHETHER IMPORTED
OR DOMESTICALLY PRODUCED WOULD BEAR ONLY THE VAT OF THE COUNTRY OF FINAL
SALE THERE IS NO BENEFIT TO EXPORTS OR HINDRANCE TO IMPORTS

OF COURSE IF A US VAT WERE USED TO REPLACE SOME EXISTING TAX THAT IS NOT
REBATABLE SUCH AS THE CORPORATE INCOME TAX THEN THERE MIGHT IN THEORY BE
SOME BENEFIT TO TRADE SINCE A PORTION OF THE CORPORATE INCOME TAX IS
CURRENTLY EMBODIED IN THE PRICES OF DOMESTICALLY PRODUCED GOODS BUT NOT
APPLIED TO IMPORTS

EMPIRICAL RESEARCH HOWEVER HAS FAILED TO PROVE THAT THIS WOULD BE THE
CASE IF IT WERE OTHER THINGS BEING EQUAL ONE WOULD EXPECT COUNTRIES WITH
HIGH VAT RATES TO HAVE LARGE TRADE SURPLUSES WITH THE US A RECENT STUDY BY
THE FEDERAL RESERVE BANK OF ST LOUIS EXAMINED THIS ISSUE AND FOUND NO
RELATION BETWEEN VAT RATES AND BILATERAL TRADE BALANCES WITH THE US THE
STUDY CONCLUDED THAT COMPETITIVENESS DOES NOT APPEAR TO BE A COMPELLING
REASON FOR THE UNITED STATES TO ADOPT A VAT

THERE MAY WELL BE REASONS TO SUPPORT A VAT FOR THE US BUT THE IDEA THAT
IT WILL IMPROVE THE US TRADE BALANCE IS NOT ONE OF THEM

MR BARTLETT IS A VISITING FELLOW AT THE CATO INSTITUTE IN WASHINGTON AND AN
ADJUNCT FELLOW OF THE ALEXIS DE TOCQUEVILLE INSTITUTION IN ARLINGTON VA
9308300109 930830 FIRST UNION CORP FILES DEBT SHELF OFFERING OF UP TO
800 MILLION

CHARLOTTE NC FIRST UNION CORP SAID IT FILED FOR A SHELF OFFERING OF
AS MUCH AS 800 MILLION IN DEBT SECURITIES

THE BANK HOLDING COMPANY MADE THE FILING WITH THE SECURITIES AND EXCHANGE
COMMISSION IN ORDER TO REPLENISH A SHELF THAT HAD BEEN DEPLETED THROUGHOUT
THE YEAR BY DEBT ISSUES MADE PRIMARILY FOR ACQUISITIONS A FIRST UNION
SPOKESMAN SAID

IN ITS FILING THE COMPANY SAID IT WILL USE THE PROCEEDS FROM THE OFFERING
FOR GENERAL PURPOSES INCLUDING DEBT REDUCTION INVESTMENTS AT THE HOLDING
COMPANY LEVEL CREDIT TO SUBSIDIARIES AND POSSIBLE ACQUISITIONS THE COMPANY
SAID THE REGISTRATION WAS INTENDED TO PROVIDE FINANCIAL FLEXIBILITY AND
WASN'T TIED TO A NEW ACQUISITION

THIS YEAR FIRST UNION ACQUIRED DOMINION BANKSHARES INC ROANOKE VA AND
FIRST AMERICAN METRO CORP MCLEAN VA WITH ASSETS OF 72 BILLION FIRST
UNION RANKS AS THE NATION'S NINTHLARGEST BANK 9308300108 930830 ITALY IS
PROPOSING STEPS TO CREATE MORE JOBS

MILAN ITALY'S GOVERNMENT PROPOSED JOBCREATING MEASURES LATE LAST WEEK

THE STEPS WOULD INCLUDE REVIVAL OF A HIGHSPEED RAIL PROJECT FRESH HIGHWAY
CONSTRUCTION URBAN RENEWAL AND OTHER PUBLIC WORKS PROJECTS THE OFFICE OF
PRIME MINISTER CARLO CIAMPI SAID

THE LATEST FIGURES FROM STATISTICS BUREAU ISTAT SHOWED UNEMPLOYMENT STOOD AT
105 FOR THE FIRST QUARTER OF 1993

THE NATION'S ASSOCIATION OF LEADING INDUSTRIALISTS CONFINDUSTRIA SAID
THURSDAY THAT 200000 ITALIANS COULD LOSE THEIR JOBS IN THE FALL BUT IT
DISMISSED PREDICTIONS OF AS MANY AS 750000 NEW JOBLESS AS EXCESSIVE

ITALY'S PUBLIC WORKS OPERATIONS HAVE BEEN STALLED BY A WIDESPREAD CORRUPTION
INVESTIGATION INTO A SYSTEM OF KICKBACKS PAID TO POLITICAL PARTIES IN ORDER
TO SECURE CONTRACTS

THE HIGHSPEED TRAIN PROJECT A 238 TRILLION LIRE 15 BILLION PLAN FIRST
PROPOSED IN 1986 WOULD CREATE 50000 JOBS ANNUALLY DURING THE NEXT FIVE TO
SIX YEARS THE GOVERNMENT SAID TRANSPORT MINISTER RAFFAELE COSTA SAID WORK
COULD BEGIN BEFORE THE END OF THE YEAR PLANS CALL FOR A 527MILE HIGHSPEED
LINK BETWEEN TURIN AND NAPLES THROUGH MILAN AND ROME 9308300107 930830
PANEL URGES COLLEGES TO CREATE CAMPUSES THAT ARE SMOKE FREE

NEW YORK A COLUMBIA UNIVERSITY COMMISSION ON SUBSTANCE ABUSE AT COLLEGES
ISSUED A REPORT URGING THE NATION'S COLLEGES TO CREATE SMOKEFREE CAMPUSES
INCLUDING A BAN ON THE SALE ADVERTISING AND DISTRIBUTION OF TOBACCO
PRODUCTS ON CAMPUS

THE REPORT IS BY THE CENTER ON ADDICTION AND SUBSTANCE ABUSE AT COLUMBIA
UNIVERSITY WHOSE CHAIRMAN AND FOUNDER IS JOSEPH A CALIFANO JR FORMER
SECRETARY OF HEALTH EDUCATION AND WELFARE THE REPORT SAID THAT BECAUSE
VIRTUALLY ALL AMERICANS WHO SMOKE BEGIN IN THEIR TEENS OR EARLY TWENTIES
INSTITUTIONS OF HIGHER EDUCATION SHOULD TAKE STEPS TO LIMIT THE
OPPORTUNITIES TO BUY AND CONSUME CIGARETTES

CENTER ON ADDICTION SPOKESWOMAN ALYSE BOOTH SAID THAT WHILE THE COMMISSION
IS LOOKING INTO OTHER ASPECTS OF SUBSTANCE ABUSE AT COLLEGES SUCH AS BINGE
DRINKING IT DECIDED TO FOCUS ON SMOKING NOW IN LIGHT OF THE ENVIRONMENTAL
PROTECTION AGENCY'S RECENT REPORTS ON THE DANGER OF SECONDHAND SMOKE

THE REPORT SAID THERE ARE 14 MILLION STUDENTS AT THE NATION'S 3535 COLLEGES
AND UNIVERSITIES ALMOST 25 OF WHOM SMOKE BESIDES CALLING FOR A BAN ON
SMOKING IN ALL CAMPUS FACILITIES VEHICLES AND DORMITORIES THE REPORT
ENCOURAGED UNIVERSITIES TO OFFER TREATMENT PROGRAMS TO HELP STUDENTS QUIT
SMOKING MS BOOTH SAID THAT WHILE THE ULTIMATE GOAL IS TO END SMOKING
EVERYWHERE ON CAMPUS NOT EVERY SCHOOL WILL DO IT COMPLETELY

THE REPORT SAID THAT BESIDES IMPROVING THE HEALTH OF FACULTY AND STUDENTS A
SMOKEFREE CAMPUS WOULD PROTECT UNIVERSITIES FROM POSSIBLE FUTURE LAWSUITS
FROM GRADUATES ASSERTING DAMAGE FROM ENVIRONMENTAL SMOKE AND WOULD REDUCE
HEALTHCARE AND CLEANING COSTS

MS BOOTH SAID MANY COLLEGES HAVE ALREADY INSTITUTED NOSMOKING POLICIES AND
CITED THE SUCCESS OF COMPANIES IN LIMITING SMOKING AS A MODEL UNIVERSITIES
COULD FOLLOW TO FURTHER DEVELOP THOSE POLICIES IF BUSINESSES AND MOVIE
THEATERS AND ALL SORTS OF OTHER PLACES CAN LIMIT OR GET RID OF SMOKING WHY
NOT COLLEGES SHE SAID

THOMAS LAURIO A SPOKESMAN FOR THE TOBACCO INSTITUTE A WASHINGTON DC
TRADE ASSOCIATION FOR THE TOBACCO INDUSTRY LIKENED THE REPORT'S
RECOMMENDATIONS TO A THOUGHT POLICE SOMEONE WHO'S OVER 18 AND PAYING TO
ATTEND THAT INSTITUTION SHOULD BE ABLE TO DO LEGAL ACTIVITIES IN HIS OR HER
DORM ROOM MR LAURIO SAID 9308300106 930830 ECONOMY MORTGAGE LENDING
TO MINORITIES ROSE AT MANY OF BIGGEST US BANKS IN 1992  BY
STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL

MANY OF THE NATION'S BIGGEST BANKS IMPROVED THEIR MORTGAGE LENDING TO
MINORITIES LAST YEAR BUT THE GAP BETWEEN MINORITY AND WHITE APPLICANTS
REMAINS SIGNIFICANT

BANKAMERICA CORP AND NORWEST CORP WERE AMONG THOSE SIGNIFICANTLY
INCREASING LOANS TO MINORITIES WHILE NEW YORK CITY BANKS ALSO MADE HEADWAY
A SURVEY OF SOME OF THE LARGEST LENDERS IN THE US SHOWS BUT MORTGAGES FOR
MINORITIES AT CITICORP THE NATION'S LARGEST BANK AND ONE OF THE BIGGEST
MORTGAGE LENDERS FELL SHARPLY AS PART OF A RESTRUCTURING OF ITS LENDING
CRITERIA NONE OF THE BANKS SURVEYED WIPED OUT THE DISPARITY BETWEEN WHITE
AND MINORITY APPLICANTS

BANKS HAVE COME UNDER PRESSURE TO EXTEND CREDIT TO MINORITIES AFTER
DISCLOSURES IN 1991 THAT BLACKS AND HISPANICS ARE MUCH MORE LIKELY TO BE
REJECTED FOR MORTGAGES THAN WHITE APPLICANTS EVEN AT COMPARABLE INCOME
LEVELS SINCE 1990 BANKS HAVE BEEN REQUIRED BY FEDERAL REGULATORS TO
DISCLOSE THE LEVEL OF MORTGAGES DENIED TO MINORITIES MOST BANKS HAVE
INITIATED MEASURES TO MODIFY THEIR UNDERWRITING STANDARDS AND ASSUMPTIONS
WHICH APPEARS TO BE HELPING MORE MINORITIES OBTAIN CREDIT

YES SOME BANKS ARE DOING BETTER BECAUSE THEY'RE WORKING WITH COMMUNITY
GROUPS TO HELP GET MORTGAGE MONEY OUT SAID BRUCE DORPALEN DIRECTOR OF
LOAN COUNSELING AT THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM
NOW AN ADVOCATE GROUP FOR LOW AND MODERATE INCOME PEOPLE

BANKS ARE BEGINNING TO UNDERSTAND THAT MINORITY APPLICANTS MIGHT HAVE
UNTRADITIONAL CREDIT HISTORIES SUCH AS FREQUENT JOB CHANGES BUT ARE
NEVERTHELESS CREDITWORTHY BORROWERS MR DORPALEN SAID HE ADDED THAT BANKS
TRADITIONALLY DON'T UNDERSTAND HOW TO MARKET IN LOW INCOME NEIGHBORHOODS

AT SOME INSTITUTIONS SUCH AS NORWEST THE REJECTION RATE ROSE FOR BLACKS AND
HISPANICS BUT THE OVERALL NUMBER OF LOANS NEARLY DOUBLED CONSULTANTS SAY A
PUSH BY BANKS TO INCREASE HOME MORTGAGE LENDING COULD TEMPORARILY RESULT IN
AN INCREASE IN THE DENIAL RATE IF BANKS ARE COURTING NEW BUSINESS

REJECTION RATES COULD BE HIGH FOR SEVERAL YEARS BECAUSE THEY DON'T KNOW HOW
TO MARKET SAID JOHN LIND EXECUTIVE DIRECTOR AT CANICCOR A NONPROFIT
GROUP THAT ANALYZES HOME MORTGAGE DATA FOR SOCIALLY CONSCIOUS INVESTORS

HERE ARE THE RESULTS FOR SOME OF THE NATION'S LARGEST BANKS

BANKAMERICA'S MAIN CALIFORNIA BANK REPORTED THAT LAST YEAR'S REJECTION RATE
EXCLUDING REFINANCINGS OF EXISTING LOANS WAS UNCHANGED AT 41 FOR BLACKS
ALTHOUGH THE NUMBER OF LOANS MADE MORE THAN DOUBLED THE HISPANIC REJECTION
RATE DECLINED TO 417 FROM 47 WHILE THE WHITE REJECTION RATE FELL TO
235 FROM 258

NATIONSBANK CORP BASED IN CHARLOTTE NC FOUND THAT ITS DENIAL RATE FOR
BLACKS EDGED DOWN TO 296 FROM 328 WHILE THE HISPANIC REJECTION RATE
FELL TO 277 FROM 326 IN 1991 THE WHITE DENIAL RATE DROPPED FIVE
PERCENTAGE POINTS TO 135 LAST YEAR

ALTHOUGH WE ARE VERY ENCOURAGED BY THIS PROGRESS WE RECOGNIZE THERE IS
MUCH MORE TO BE DONE SAID CATHERINE BESSANT PRINCIPAL COMMUNITY
INVESTMENT EXECUTIVE AT NATIONSBANK

CHASE MANHATTAN CORP'S RESULTS FOR ITS ENTITIES THAT OPERATE IN NEW YORK
SHOWED THAT EXCLUDING REFINANCING OF EXISTING MORTGAGES 20 OF BLACK
APPLICANTS WERE REJECTED DOWN FROM 23 IN 1991 THE WHITE REJECTION RATE
ROSE TO 10 FROM 7 IN 1991 THE HISPANIC REJECTION RATE FELL TO 21 FROM
26 IN 1991

MARK WILLIS PRESIDENT OF THE CHASE COMMUNITY DEVELOPMENT CORP ATTRIBUTED
THE IMPROVED ACCEPTANCE RATES FOR MINORITIES TO A SERIES OF INITIATIVES
INCLUDING A REVIEW PROCESS FOR MINORITY APPLICANTS INCREASED ADVERTISING
AND AN OUTSIDE FIRM THAT TESTS FOR DISCRIMINATION

CHEMICAL BANKING CORP HAS TAKEN SIMILAR MEASURES WHICH HAS HELPED RAISE
THE PERCENTAGE OF MINORITIES OBTAINING MORTGAGES EXCLUDING REFINANCINGS
BLACK APPLICANTS WERE REJECTED AT A 504 RATE DOWN FROM 519 IN 1991 THE
DENIAL RATE FOR HISPANIC APPLICANTS FELL TO 439 FROM 526 WHILE WHITES
WERE REJECTED AT A 252 RATE DOWN FROM 295 IN 1991

FIRST UNION CORP BASED IN CHARLOTTE NC SAID ITS DENIAL RATE FOR BLACK
APPLICANTS ROSE TO 336 LAST YEAR FROM 312 IN 1991 THE REJECTION RATE
FOR HISPANICS FELL TO 235 OF APPLICANTS FROM 277 WHITES MEANWHILE
WERE DENIED MORTGAGES AT A 128 RATE UP SLIGHTLY FROM 126 IN 1991 A
SPOKESMAN SAID THE REJECTION RATE ROSE FOR BLACKS BECAUSE OF A 78 INCREASE
IN APPLICATIONS

NORWEST'S MORTGAGE BANKING ARM SAID REJECTION RATES EDGED UP FOR VIRTUALLY
ALL GROUPS DUE TO WHAT THE BANK SAID WAS A MORE AGGRESSIVE PUSH TO SEEK
CLIENTS INCLUDING REFINANCING LOANS THE ONLY FIGURES AVAILABLE NORWEST
MORTGAGE REJECTED 1575 OF BLACK APPLICANTS AND 1225 OF HISPANICS IN
1992 UP FROM 1311 AND 1080 RESPECTIVELY WHITE APPLICANTS WERE
REJECTED AT A 532 RATE UP FROM 49 IN 1991 BUT THE COMPANY SAYS THE
VOLUME OF ITS MINORITY LENDING ROSE TO 107 BILLION FROM 634 MILLION IN
1991

FLEET FINANCIAL GROUP SAID BLACK APPLICANTS WERE REJECTED AT A 2092 RATE
DOWN FROM 2644 HISPANIC APPLICANTS WERE REJECTED AT A 1589 RATE DOWN
FROM 1876 AND WHITES WERE REJECTED AT A 1157 RATE DOWN FROM 1306
THOSE FIGURES INCLUDE REFINANCING OF EXISTING LOANS

BUT AT CITICORP'S MAIN BANKING UNITS MORE MINORITY APPLICANTS WERE REJECTED
LAST YEAR THAN THE YEAR BEFORE BECAUSE OF WHAT A SPOKESWOMAN SAID WERE
STRICTER CRITERIA ACROSS THE BOARD EXCLUDING REFINANCINGS IT REJECTED 56
OF BLACK APPLICANTS UP FROM 44 IN 1991 HISPANICS WERE REJECTED AT A 52
RATE UP FROM 43 IN 1991 THE REJECTION RATE FOR WHITE APPLICANTS HOWEVER
WAS UNCHANGED AT 30 THE VOLUME OF MORTGAGES FOR BLACKS AND HISPANICS FELL
ABOUT 85 FOR WHITES THE VOLUME FELL 50

IT WAS AN UNINTENTIONAL SIDE EFFECT OF THE BANK'S EFFORT TO CLEAN UP ITS
MORTGAGE UNIT A SPOKESWOMAN FOR CITICORP SAID LAST YEAR AS PART OF THAT
EFFORT THE BANKING GIANT SUSPENDED ITS PROGRAM OF HOLDING MORTGAGES ON ITS
BOOKS THAT IT COULD NOT RESELL INTO THE SECONDARY MARKET BECAUSE IT WOULD
ONLY LEND MONEY TO INDIVIDUALS WITH CRYSTAL CLEAR CREDITWORTHINESS
CITICORP ENDED UP MAINTAINING ONLY THE REJECTION RATE FOR WHITE APPLICANTS
THE SPOKESWOMAN SAID WHITE APPLICANTS TEND TO HAVE HIGHER INCOMES AND MORE
DETAILED CREDIT HISTORIES SHE SAID 9308300105 930830 INTERNATIONAL 
WASHINGTON INSIGHT FOR THE US A LESS COHESIVE EUROPE IS MAKING
RELATIONSHIPS MORE STICKY  BY TIM CARRINGTON STAFF REPORTER OF THE
WALL STREET JOURNAL

WASHINGTON WHEN WASHINGTON NEEDS TO CALL EUROPE WHOM DOES IT RING UP

IN THE DAYS OF THE TIGHT REAGANTHATCHER AXIS LONDON WAS THE OBVIOUS
AMERICAN LINE TO EUROPE ON ISSUES RANGING FROM MISSILES TO TRADE LATER THE
BUSH TEAM DISCOVERED THE GROWING CLOUT OF THE EUROPEAN COMMUNITY BUT IT
FROSTED SOME EUROPEANS BY SUGGESTING THE US BE GIVEN A SEAT AT THE TABLE
TO KEEP FORTRESS EUROPE TENDENCIES IN CHECK MEANWHILE SOME US DIPLOMATS
PUSHED CLOSER GERMAN TIES ON THE ASSUMPTION THAT GERMANY WOULD DOMINATE A
UNIFIED EUROPE

THESE DAYS THE VIEW IS MURKY AN INWARDLOOKING DEBTBURDENED GERMANY IS
CONTENDING WITH ECONOMIC STAGNATION AND KILLER SKINHEADS THE RACE TOWARD
EUROPEAN INTEGRATION SEEMS BECALMED IN A SEA OF PESSIMISM AND RECESSION AND
THERE IS NO TOPLEVEL CHEMISTRY TO TAKE THE PLACE OF THE REAGANTHATCHER
BOND RELATIONS ARE PARTICULARLY PRICKLY WITH FRENCH LEADERS WHO CHAFE
ABOUT THE ROLE NEW YORK CURRENCY SPECULATORS PLAYED IN DESTROYING EUROPE'S
MONETARY LINKAGE THIS SUMMER

EUROPEANS TRYING TO MAKE SENSE OF WASHINGTON HAVE DIFFICULTIES TOO THEY
SEE AN ADMINISTRATION FOCUSED ON DOMESTIC MATTERS AND INCLINED TO DEAL WITH
INTERNATIONAL PROBLEMS IN TERMS OF THE FALLOUT AT HOME

BUT NEITHER SIDE CAN AFFORD TO WAIT FOR THE HAZE TO CLEAR IN THE NEXT THREE
MONTHS THE USEUROPEAN AGENDA WILL BE PACKED THE BOSNIAN HORROR DEMANDS
A RESOLVE FROM THE WEST THAT HAS BEEN ELUSIVE SO FAR THERE IS A YEAREND
SUMMIT OF THE NORTH ATLANTIC TREATY ORGANIZATION THAT IS CRUCIAL TO
FASHIONING A FRAMEWORK FOR A POSTCOLD WAR ALLIANCE AND THE TORTUOUS
URUGUAY ROUND OF WORLD TRADE TALKS WILL BE CONCLUDED OR BURIED IN THE
NEXT FOUR MONTHS

WE NEED A USEUROPEAN PARTNERSHIP SAYS A SENIOR US DIPLOMATIC
OFFICIAL FOR THAT TO WORK WE NEED A COHERENT COHESIVE EUROPE WHERE WE
CAN GO FOR A QUICK DECISION BUT COHERENCE IS A SOMETIME THING IN EUROPE
EUROPE SUFFERS FROM A SORT OF MANIC DEPRESSION AS FAR AS UNIFICATION IS
CONCERNED SAYS A US DIPLOMAT WITH A LONG CAREER IN EUROPE

AMERICANS SHOULDN'T DESPAIR THOUGH JUST AS THREE OR FOUR YEARS AGO SOME
AMERICANS TOOK PREDICTIONS OF A UNITED STATES OF EUROPE TOO SERIOUSLY SOME
AMERICANS TAKE TOO SERIOUSLY TODAY'S TALK OF EUROPEAN DISARRAY

TO MOST EUROPEAN POLICY MAKERS PROBLEMS RATIFYING THE MAASTRICHT
UNIFICATION TREATY AND THE NEARCRASH OF THE EUROPEAN MONETARY SYSTEM CHANGE
THE TIMING BUT NOT THE GOALS OF EUROPEAN UNIFICATION EUROPEAN LEADERS
DON'T SEE THIS AS THE DEATH KNELL THAT MANY AMERICANS IMAGINE SAYS KERMIT
SCHOENHOLTZ DIRECTOR OF ECONOMIC AND MARKET ANALYSIS FOR SALOMON BROTHERS
INTERNATIONAL LTD IN LONDON

FOR NOW THE US WILL FIND ITSELF DEALING SIMULTANEOUSLY WITH SEVERAL
EUROPES IN SOME AREAS POWER IS CENTRALIZED IN EC INSTITUTIONS IN OTHER
AREAS NATIONSTATES CALL THE SHOTS ON TRADE MATTERS THE COMMUNITY SPEAKS
AND NEGOTIATES FOR ITS MEMBERS AND SPORADIC US ATTEMPTS TO DIVIDE AND
CONQUER TEND TO BACKFIRE OF LATE US TOP TRADE NEGOTIATOR MICKEY KANTOR
AND SIR LEON BRITTAN HIS EC COUNTERPART SEEM TO HAVE FORMED A WORKING
RELATIONSHIP THOUGH DISAGREEMENTS REMAIN

AT THE SAME TIME THE US SHOULDN'T EXPECT MUCH EC UNITY ON NATIONAL
SECURITY MATTERS AS THE DISHARMONY ON BOSNIA DEMONSTRATES SO IT SHOULD
CONTINUE TO NEGOTIATE WITH INDIVIDUAL GOVERNMENTS AND THEIR NATO
REPRESENTATIVES

MONETARY EUROPE OF COURSE PRESENTS THE US WITH THE GREATEST MUDDLE
SINCE THE EMS BROKE UP AND WAS COBBLED TOGETHER MORE LOOSELY MONETARY
DECISIONS GET MADE INDEPENDENTLY LONDON IS GOING ITS OWN WAY AND
COLLECTIVELY THE REMAINING MEMBERS OF THE EXCHANGE RATE MECHANISM STILL
GEAR THEIR MONETARY POLICIES TO THOSE OF THE GERMAN BUNDESBANK SO WHILE
THE US SHOULDN'T TOSS OUT ITS COPIES OF THE MAASTRICHT TREATY AND ITS
BLUEPRINT FOR AN EC CENTRAL BANK AND SINGLE CURRENCY IT SHOULD FOCUS ON THE
BUNDESBANK AS THE MONETARY HEAVYWEIGHT FOR THE TIME BEING

MEANWHILE STILL ANOTHER EUROPE IS EMERGING ONE THAT IS INDEPENDENT OF THE
EC'S TREATIES AND INSTITUTIONS IT IS THE CENTRAL EUROPEAN BLOC WHICH LOOKS
TO BERLIN NOT BRUSSELS FOR DIRECTION FORMER EAST BLOC STATES SUCH AS
HUNGARY THE CZECH REPUBLIC SLOVAKIA AND POLAND HAVE GOTTEN ONLY
BEGRUDGING TRADE ACCESS TO THE EC MARKETS BUT HAVE LURED BIG INVESTMENTS
FROM GERMAN INDUSTRY GERMANY WILL INCREASINGLY FOCUS ITS EFFORTS NOT ON
THE EUROPEAN COMMUNITY BUT IN TURNING EAST PREDICTS RICHARD DAVIDSON
STRATEGIST WITH MORGAN STANLEY CO IN LONDON GERMAN COMPANIES CAN BENEFIT
FROM LOW LABOR RATES THERE AND FROM SUPPLYING THESE COUNTRIES CAPITAL
GOODS

IN PURSUING ITS COMMITMENT TO FOSTERING DEMOCRACY IN THE FORMER COMMUNIST
STATES THE CLINTON ADMINISTRATION CAN'T IGNORE THE EAST EUROPEAN STATES
BUT IT WILL NEED TO WORK WITH THE VARIOUS OVERLAPPING EUROPEAN POWER
CENTERS SPECIFICALLY THE US SHOULD LEAN ON THE EC TO OPEN ITS MARKETS TO
MORE EAST BLOC PRODUCTS BUT ALSO RECOGNIZE THE ROLE GERMAN INVESTMENT HAS
HAD IN REBUILDING THE FORMER COMMUNIST SATELLITES

OVERALL SAYS A VETERAN US DIPLOMAT NOW WE HAVE A NEW PHASE THE
ABSENCE OF THE SOVIET MENACE AND IN ITS PLACE A CONFUSED EUROPE
9308300104 930830 WHO'S NEWS PRUDENTIAL MOVES ON STREAMLINING TOP
MANAGEMENT  BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET
JOURNAL

NEWARK NJ PRUDENTIAL INSURANCE CO OF AMERICA STREAMLINED ITS SENIOR
MANAGEMENT STRUCTURE FORMING A TWOMEMBER OFFICE OF THE CHAIRMAN TO REPLACE
ITS FIVEMEMBER EXECUTIVE OFFICE

THE NEW OFFICE WILL COMPRISE ROBERT C WINTERS CHAIRMAN AND CHIEF EXECUTIVE
OFFICER AND GARNETT KEITH VICE CHAIRMAN MR WINTERS 61 YEARS OLD AND
MR KEITH 57 WILL HAVE OVERSIGHT OF ALL OPERATIONS

WE'RE TRYING TO GET A BETTER FOCUS ON OUR BUSINESS MR WINTERS SAID AS
THE PRUDENTIAL CONTINUES TO GROW WE DISCOVERED THAT THE DUAL ROLE OF PEOPLE
BEING IN CHARGE OF THEIR OWN BUSINESS AND THE OVERALL ENTERPRISE HAD JUST
BECOME UNREASONABLE

THREE FORMER MEMBERS OF THE EXECUTIVE OFFICE WILL NOW CONCENTRATE ON THEIR
CORE BUSINESSES MR WINTERS SAID WILLIAM P LINK EXECUTIVE VICE
PRESIDENT 46 WILL OVERSEE GROUP INSURANCE AND MANAGED MEDICAL CARE
OPERATIONS AND THE DEFINEDCONTRIBUTION PENSION BUSINESS

HARDWICK SIMMONS 53 WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
OF PRUDENTIAL SECURITIES INC AND EDWARD D ZINBARG 58 WILL CONTINUE AS
EXECUTIVE VICE PRESIDENT WITH OVERSIGHT OF CORPORATE STAFF FUNCTIONS BUT
WILL ALSO DIRECT A ONEYEAR STUDY OF PERFORMANCE OF THE COMPANY'S BUSINESS
UNITS FOLLOWING THE STUDY MR WINTERS SAID MR ZINBARG WILL RETIRE

MR WINTERS SAID THE MANAGEMENT CHANGE SHOULDN'T BE VIEWED AS ANY KIND OF
DEMOTION FOR THE THREE FORMER EXECUTIVE OFFICE MEMBERS I CONSULTED WITH A
LOT OF PEOPLE INCLUDING THOSE IN THE EXECUTIVE OFFICE AND WE FELT THAT
THESE PEOPLE RUNNING THEIR BUSINESSES HAD PLENTY ON THEIR PLATES MR
WINTERS SAID THE PEOPLE IN THE COMPANY I SPOKE TO SAID WE NEEDED GREATER
SIMPLICITY ACCOUNTABILITY AND DIRECTION THE OLD EXECUTIVE OFFICE CREATED
20 YEARS AGO ASKED PEOPLE TO ASSUME TWO ROLES WHICH WAS TOO MUCH

THE COMPANY ALSO CREATED AN OPERATING COUNCIL COMPRISING THE OLD EXECUTIVE
OFFICE MEMBERS AND 13 ADDITIONAL SENIOR OFFICERS

AS PART OF THE RESTRUCTURING PRUDENTIAL SAID IT WILL MOVE ALL REGIONAL
GROUP INSURANCE ADMINISTRATIVE FUNCTIONS IN THE TWIN CITIES TO THREE
EXISTING LOCATIONS THE COMPANY SAID CUTBACKS WON'T AFFECT EXISTING MANAGED
HEALTHCARE OPERATIONS SALES AND MARKETING OR OTHER PRUDENTIAL BUSINESS
OPERATIONS